In the Senate of the United States,

March 12, 1996.

Resolved, That the bill from the House of Representatives (H.R. 2854) entitled ‘‘An Act to modify the operation

of certain agricultural programs.’’, do pass with the following

AMENDMENT:

Strike out all after the enacting clause and insert:

1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

2 (a) SHORT TITLE.—This Act may be cited as the ‘‘Ag3 ricultural Reform and Improvement Act of 1996’’.

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

5 Act is as follows:

Sec. 1. Short title; table of contents.

TITLE I—AGRICULTURAL MARKET TRANSITION PROGRAM

Sec. 101. Short title.

Sec. 102. Definitions.

Sec. 103. Production flexibility contracts.

Sec. 104. Nonrecourse marketing assistance loans and loan deficiency payments.

Sec. 105. Payment limitations.

Sec. 106. Peanut program.

Sec. 107. Sugar program.

Sec. 108. Administration.

Sec. 109. Suspension and repeal of permanent authorities.

Sec. 110. Effect of amendments.
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TITLE II—AGRICULTURAL TRADE

Subtitle A—Amendments to Agricultural Trade Development and Assistance Act

of 1954 and Related Statutes

Sec. 201. Food aid to developing countries.

Sec. 202. Trade and development assistance.

Sec. 203. Agreements regarding eligible countries and private entities.

Sec. 204. Terms and conditions of sales.

Sec. 205. Use of local currency payment.

Sec. 206. Value-added foods.

Sec. 207. Eligible organizations.

Sec. 208. Generation and use of foreign currencies.

Sec. 209. General levels of assistance under Public Law 480.

Sec. 210. Food aid consultative group.

Sec. 211. Support of nongovernmental organizations.

Sec. 212. Commodity determinations.

Sec. 213. General provisions.

Sec. 214. Agreements.

Sec. 215. Use of commodity credit corporation.

Sec. 216. Administrative provisions.

Sec. 217. Expiration date.

Sec. 218. Regulations.

Sec. 219. Independent evaluation of programs.

Sec. 220. Authorization of appropriations.

Sec. 221. Coordination of foreign assistance programs.

Sec. 222. Micronutrient fortification pilot program.

Sec. 223. Use of certain local currency.

Sec. 224. Levels of assistance under farmer-to-farmer program.

Sec. 225. Food security commodity reserve.

Sec. 226. Protein byproducts derived from alcohol fuel production.

Sec. 227. Food for progress program.

Sec. 228. Use of foreign currency proceeds from export sales financing.

Sec. 229. Stimulation of foreign production.

Subtitle B—Amendments to Agricultural Trade Act of 1978

Sec. 241. Agricultural export promotion strategy.

Sec. 242. Export credits.

Sec. 243. Market promotion program.

Sec. 244. Export enhancement program.

Sec. 245. Arrival certification.

Sec. 246. Compliance.

Sec. 247. Regulations.

Sec. 248. Trade compensation and assistance programs.

Sec. 249. Foreign agricultural service.

Sec. 250. Reports.

Subtitle C—Miscellaneous

Sec. 251. Reporting requirements relating to tobacco.

Sec. 252. Triggered export enhancement.

Sec. 253. Disposition of commodities to prevent waste.

Sec. 254. Direct sales of dairy products.

Sec. 255. Export sales of dairy products.

Sec. 256. Debt-for-health-and-protection swap.
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Sec. 257. Policy on expansion of international markets.

Sec. 258. Policy on maintenance and development of export markets.

Sec. 259. Policy on trade liberalization.

Sec. 260. Agricultural trade negotiations.

Sec. 261. Policy on unfair trade practices.

Sec. 262. Agricultural aid and trade missions.

Sec. 263. Annual reports by agricultural attaches.

Sec. 264. World livestock market price information.

Sec. 265. Orderly liquidation of stocks.

Sec. 266. Sales of extra long staple cotton.

Sec. 267. Regulations.

Sec. 268. Emerging markets.

Sec. 269. Import assistance for CBI beneficiary countries and the Philippines.

Sec. 270. Studies, reports, and other provisions.

Sec. 271. Implementation of commitments under Uruguay Round Agreements.

Sec. 272. Sense of Congress concerning multilateral disciplines on credit guarantees.

Sec. 273. Foreign market development cooperator program.

Sec. 274. Price support for rice.

TITLE III—CONSERVATION

Subtitle A—Definitions

Sec. 301. Definitions.

Subtitle B—Environmental Conservation Acreage Reserve Program

Sec. 311. Environmental conservation acreage reserve program.

Sec. 312. Conservation reserve program.

Sec. 313. Wetlands reserve program.

Sec. 314. Environmental quality incentives program.

Subtitle C—Conservation Funding

Sec. 321. Conservation funding.

Subtitle D—National Natural Resources Conservation Foundation

Sec. 331. Short title.

Sec. 332. Definitions.

Sec. 333. National Natural Resources Conservation Foundation.

Sec. 334. Composition and operation.

Sec. 335. Officers and employees.

Sec. 336. Corporate powers and obligations of the Foundation.

Sec. 337. Administrative services and support.

Sec. 338. Audits and petition of Attorney General for equitable relief.

Sec. 339. Release from liability.

Sec. 340. Authorization of appropriations.

Subtitle E—Miscellaneous

Sec. 351. Flood risk reduction.

Sec. 352. Forestry.

Sec. 353. State technical committees.

Sec. 354. Conservation of private grazing land.

Sec. 355. Conforming amendments.

Sec. 356. Water bank program.
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Sec. 357. Flood water retention pilot projects.

Sec. 358. Wetland conservation exemption.

Sec. 359. Floodplain easements.

Sec. 360. Resource conservation and development program reauthorization.

Sec. 361. Conservation reserve new acreage.

Sec. 362. Repeal of report requirement.

Sec. 363. Watershed protection and flood prevention act amendments.

Sec. 364. Abandonment of converted wetlands.

TITLE IV—NUTRITION ASSISTANCE

Sec. 401. Food stamp program.

Sec. 402. Commodity distribution program; commodity supplemental food program.

Sec. 403. Emergency food assistance program.

Sec. 404. Soup kitchens program.

Sec. 405. National commodity processing.

TITLE V—MISCELLANEOUS

Subtitle A—General Miscellaneous Provisions

Sec. 501. Fund for dairy producers to pay for nutrient management.

Sec. 502. Crop insurance.

Sec. 503. Revenue insurance.

Sec. 504. Collection and use of agricultural quarantine and inspection fees.

Sec. 505. Commodity Credit Corporation interest rate.

Sec. 506. Everglades Agricultural Area.

Sec. 507. Fund for Rural America.

Subtitle B—Options Pilot Programs and Risk Management Education

Sec. 511. Short title.

Sec. 512. Purpose.

Sec. 513. Pilot programs.

Sec. 514. Terms and conditions.

Sec. 515. Notice.

Sec. 516. Commodity Credit Corporation.

Sec. 517. Risk management education.

Subtitle C—Commercial Transportation of Equine for Slaughter

Sec. 521. Findings.

Sec. 522. Definitions.

Sec. 523. Standards for humane commercial transportation of equine for slaughter.

Sec. 524. Records.

Sec. 525. Agents.

Sec. 526. Cooperative agreements.

Sec. 527. Investigations and inspections.

Sec. 528. Interference with enforcement.

Sec. 529. Jurisdiction of courts.

Sec. 530. Civil and criminal penalties.

Sec. 531. Payments for temporary or medical assistance for equine due to violations.

Sec. 532. Relationship to State law.

Sec. 533. Authorization of appropriations.
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Subtitle D—Miscellaneous

Sec. 541. Livestock dealer trust.

Sec. 542. Planting of energy crops.

Sec. 543. Reimbursable agreements.

Sec. 544. Swine health protection.

Sec. 545. Cooperative work for protection, management, and improvement of National Forest System.

Sec. 546. Amendment of the Virus-Serum Toxin Act of 1913.

Sec. 547. Overseas tort claims.

Sec. 548. Graduate School of the United States Department of Agriculture.

Sec. 549. Student intern subsistence program.

Sec. 550. Conveyance of land to White Oak Cemetery.

Sec. 551. Advisory board on agricultural air quality.

Sec. 552. Water systems for rural and Native villages in Alaska.

Sec. 553. Eligibility for grants to broadcasting systems.

Sec. 554. Wildlife Habitat Incentives Program.

Sec. 555. Indian reservations.

Sec. 556. ICD reimbursement for overhead expenses.

Sec. 557. Clarification of effect of resource planning on allocation or use of water.

TITLE VI—CREDIT

Subtitle A—Agricultural Credit

CHAPTER 1—FARM OWNERSHIP LOANS

Sec. 601. Limitation on direct farm ownership loans.

Sec. 602. Purposes of loans.

Sec. 603. Soil and water conservation and protection.

Sec. 604. Interest rate requirements.

Sec. 605. Insurance of loans.

Sec. 606. Loans guaranteed.

CHAPTER 2—OPERATING LOANS

Sec. 611. Limitation on direct operating loans.

Sec. 612. Purposes of operating loans.

Sec. 613. Participation in loans.

Sec. 614. Line-of-credit loans.

Sec. 615. Insurance of operating loans.

Sec. 616. Special assistance for beginning farmers and ranchers.

Sec. 617. Limitation on period for which borrowers are eligible for guaranteed assistance.

CHAPTER 3—EMERGENCY LOANS

Sec. 621. Hazard insurance requirement.

Sec. 622. Maximum emergency loan indebtedness.

Sec. 623. Insurance of emergency loans.

CHAPTER 4—ADMINISTRATIVE PROVISIONS

Sec. 631. Use of collection agencies.

Sec. 632. Notice of loan service programs.

Sec. 633. Sale of property.

Sec. 634. Definitions.

Sec. 635. Authorization for loans.
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Sec. 636. List of certified lenders and inventory property demonstration project.

Sec. 637. Homestead property.

Sec. 638. Restructuring.

Sec. 639. Transfer of inventory lands.

Sec. 640. Implementation of target participation rates.

Sec. 641. Delinquent borrowers and credit study.

CHAPTER 5—GENERAL PROVISIONS

Sec. 651. Conforming amendments.

Subtitle B—Farm Credit System

CHAPTER 1—AGRICULTURAL MORTGAGE SECONDARY MARKET

Sec. 661. Definition of real estate.

Sec. 662. Definition of certified facility.

Sec. 663. Duties of Federal Agricultural Mortgage Corporation.

Sec. 664. Powers of the Corporation.

Sec. 665. Federal reserve banks as depositaries and fiscal agents.

Sec. 666. Certification of agricultural mortgage marketing facilities.

Sec. 667. Guarantee of qualified loans.

Sec. 668. Mandatory reserves and subordinated participation interests eliminated.

Sec. 669. Standards requiring diversified pools.

Sec. 670. Small farms.

Sec. 671. Definition of an affiliate.

Sec. 672. State usury laws superseded.

Sec. 673. Extension of capital transition period.

Sec. 674. Minimum capital level.

Sec. 675. Critical capital level.

Sec. 676. Enforcement levels.

Sec. 677. Recapitalization of the Corporation.

Sec. 678. Liquidation of the Federal Agricultural Mortgage Corporation.

CHAPTER 2—REGULATORY RELIEF

Sec. 681. Compensation of association personnel.

Sec. 682. Use of private mortgage insurance.

Sec. 683. Removal of certain borrower reporting requirement.

Sec. 684. Reform of regulatory limitations on dividend, member business, and

voting practices of eligible farmer-owned cooperatives.

Sec. 685. Removal of Federal Government certification requirement for certain

private sector financings.

Sec. 686. Borrower stock.

Sec. 687. Disclosure relating to adjustable rate loans.

Sec. 688. Borrowers’ rights.

Sec. 689. Formation of administrative service entities.

Sec. 690. Joint management agreements.

Sec. 691. Dissemination of quarterly reports.

Sec. 692. Regulatory review.

Sec. 693. Examination of Farm Credit System Institutions.

Sec. 694. Conservatorships and receiverships.

Sec. 695. Farm Credit Insurance Fund operations.

Sec. 696. Examinations by the Farm Credit System Insurance Corporation.

Sec. 697. Powers with respect to troubled insured system banks.
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Sec. 698. Oversight and regulatory actions by the Farm Credit System Insurance

Corporation.

Sec. 699. Farm Credit System Insurance Corporation Board of Directors.

Sec. 699A. Liability for making criminal referrals.

TITLE VII—RURAL DEVELOPMENT

Subtitle A—Amendments to the Food, Agriculture, Conservation, and Trade Act

of 1990

CHAPTER 1—GENERAL PROVISIONS

Sec. 701. Rural investment partnerships.

Sec. 702. Water and waste facility financing.

Sec. 703. Rural wastewater circuit rider program.

Sec. 704. Telemedicine and distance learning services in rural areas.

Sec. 705. Limitation on authorization of appropriations for rural technology

grants.

Sec. 706. Monitoring the economic progress of rural America.

Sec. 707. Analysis by Office of Technology Assessment.

Sec. 708. Rural health infrastructure improvement.

Sec. 709. Census of agriculture.

CHAPTER 2—ALTERNATIVE AGRICULTURAL RESEARCH AND COMMERCIALIZATION

Sec. 721. Definitions.

Sec. 722. Alternative Agricultural Research and Commercialization Corporation.

Sec. 723. Board of directors, employees, and facilities.

Sec. 724. Research and development grants, contracts, and agreements.

Sec. 725. Commercialization assistance.

Sec. 726. General rules regarding the provision of assistance.

Sec. 727. Regional centers.

Sec. 728. Alternative Agricultural Research and Commercialization Revolving

Fund.

Sec. 729. Procurement preferences for products receiving corporation assistance.

Sec. 730. Business plan and feasibility study and report.

Subtitle B—Amendments to the Consolidated Farm and Rural Development Act

CHAPTER 1—GENERAL PROVISIONS

Sec. 741. Water and waste facility loans and grants.

Sec. 742. Emergency community water assistance grant program for small communities.

Sec. 743. Emergency community water assistance grant program for smallest

communities.

Sec. 744. Agricultural Credit Insurance Fund.

Sec. 745. Rural Development Insurance Fund.

Sec. 746. Insured watershed and resource conservation and development loans.

Sec. 747. Rural industrialization assistance.

Sec. 748. Administration.

Sec. 749. Authorization of appropriations.

Sec. 750. Testimony before congressional committees.

Sec. 751. Prohibition on use of loans for certain purposes.

Sec. 752. Rural development certified lenders program.

Sec. 753. System for delivery of certain rural development programs.

Sec. 754. State rural economic development review panel.
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Sec. 755. Limited transfer authority of loan amounts.

Sec. 756. Allocation and transfer of loan guarantee authority.

Sec. 757. National sheep industry improvement center.

CHAPTER 2—RURAL COMMUNITY ADVANCEMENT PROGRAM

Sec. 761. Rural community advancement program.

Sec. 762. Community facilities grant program.

Subtitle C—Amendments to the Rural Electrification Act of 1936

Sec. 771. Purposes; investigations and reports.

Sec. 772. Authorization of appropriations.

Sec. 773. Loans for electrical plants and transmission lines.

Sec. 774. Loans for electrical and plumbing equipment.

Sec. 775. Testimony on budget requests.

Sec. 776. Transfer of functions of administration created by executive order.

Sec. 777. Annual report.

Sec. 778. Prohibition on restricting water and waste facility services to electric

customers.

Sec. 779. Telephone loan terms and conditions.

Sec. 780. Privatization program.

Sec. 781. Rural business incubator fund.

Subtitle D—Miscellaneous Rural Development Provisions

Sec. 791. Interest rate formula.

Sec. 792. Grants for financially stressed farmers, dislocated farmers, and rural

families.

Sec. 793. Cooperative agreements.

TITLE VIII—RESEARCH EXTENSION AND EDUCATION

Subtitle A—Amendments to National Agricultural Research, Extension, and

Teaching Policy Act of 1977 and Related Statutes

Sec. 801. Purposes of agricultural research, extension, and education.

Sec. 802. Subcommittee on Food, Agricultural, and Forestry Research.

Sec. 803. Joint Council on Food and Agricultural Sciences.

Sec. 804. National Agricultural Research, Extension, Education, and Economics

Advisory Board.

Sec. 805. Agricultural Science and Technology Review Board.

Sec. 806. Federal Advisory Committee Act exemption for Federal-State cooperative programs.

Sec. 807. Coordination and planning of agricultural research, extension, and education.

Sec. 808. Grants and fellowships for food and agricultural sciences education.

Sec. 809. Grants for research on the production and marketing of alcohols and

industrial hydrocarbons from agricultural commodities and forest products.

Sec. 810. Policy research centers.

Sec. 811. Human nutrition intervention and health promotion research program.

Sec. 812. Food and nutrition education program.

Sec. 813. Purposes and findings relating to animal health and disease research.

Sec. 814. Animal Health Science Research Advisory Board.

Sec. 815. Animal health and disease continuing research.

Sec. 816. Animal health and disease national or regional research.
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Sec. 817. Resident instruction program at 1890 land-grant colleges.

Sec. 818. Grant program to upgrade agricultural and food sciences facilities at

1890 land-grant colleges.

Sec. 819. National research and training centennial centers authorization.

Sec. 820. Grants to States for international trade development centers.

Sec. 821. Agricultural research programs.

Sec. 822. Extension education.

Sec. 823. Supplemental and alternative crops research.

Sec. 824. Aquaculture assistance programs.

Sec. 825. Rangeland research.

Sec. 826. Technical amendments.

Subtitle B—Amendments to Food, Agriculture, Conservation, and Trade Act of

1990

Sec. 831. Water quality research, education, and coordination.

Sec. 832. Education program regarding handling of agricultural chemicals and

agricultural chemical containers.

Sec. 833. Program administration.

Sec. 834. National genetics resources program.

Sec. 835. National agricultural weather information system.

Sec. 836. Research regarding production, preparation, processing, handling, and

storage of agricultural products.

Sec. 837. Plant and animal pest and disease control program.

Sec. 838. Livestock product safety and inspection program.

Sec. 839. Plant genome mapping program.

Sec. 840. Specialized research programs.

Sec. 841. Agricultural telecommunications program.

Sec. 842. National centers for agricultural product quality research.

Sec. 843. Turkey research center authorization.

Sec. 844. Special grant to study constraints on agricultural trade.

Sec. 845. Pilot project to coordinate food and nutrition education programs.

Sec. 846. Assistive technology program for farmers with disabilities.

Sec. 847. Demonstration projects.

Sec. 848. National rural information center clearinghouse.

Sec. 849. Global climate change.

Sec. 850. Technical amendments.

Subtitle C—Miscellaneous Research Provisions

Sec. 861. Critical agricultural materials research.

Sec. 862. 1994 Institutions.

Sec. 863. Smith-Lever Act funding for 1890 land-grant colleges, including

Tuskegee University and the District of Columbia.

Sec. 864. Committee of nine.

Sec. 865. Agricultural research facilities.

Sec. 866. National competitive research initiative.

Sec. 867. Cotton crop reports.

Sec. 868. Rural development research and education.

Sec. 869. Human nutrition research.

Sec. 870. Dairy goat research program.

Sec. 871. Grants to upgrade 1890 land-grant college extension facilities.

Sec. 872. Stuttgart National Aquaculture Research Center.

Sec. 873. National aquaculture policy, planning, and development.

Sec. 874. Expansion of authorities related to the national arboretum.

Sec. 875. Study of agricultural research service.
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Sec. 876. Labeling of domestic and imported lamb and mutton.

Sec. 877. Sense of Senate.

TITLE IX—AGRICULTURAL PROMOTION

Subtitle A—Popcorn

Sec. 901. Short title.

Sec. 902. Findings and declaration of policy.

Sec. 903. Definitions.

Sec. 904. Issuance of orders.

Sec. 905. Required terms in orders.

Sec. 906. Referenda.

Sec. 907. Petition and review.

Sec. 908. Enforcement.

Sec. 909. Investigations and power to subpoena.

Sec. 910. Relation to other programs.

Sec. 911. Regulations.

Sec. 912. Authorization of appropriations.

Subtitle B—Canola and Rapeseed

Sec. 921. Short title.

Sec. 922. Findings and declaration of policy.

Sec. 923. Definitions.

Sec. 924. Issuance and amendment of orders.

Sec. 925. Required terms in orders.

Sec. 926. Assessments.

Sec. 927. Referenda.

Sec. 928. Petition and review.

Sec. 929. Enforcement.

Sec. 930. Investigations and power to subpoena.

Sec. 931. Suspension or termination of an order.

Sec. 932. Regulations.

Sec. 933. Authorization of appropriations.

Subtitle C—Kiwifruit

Sec. 941. Short title.

Sec. 942. Findings and purposes.

Sec. 943. Definitions.

Sec. 944. Issuance of orders.

Sec. 945. National Kiwifruit Board.

Sec. 946. Required terms in order.

Sec. 947. Permissive terms in order.

Sec. 948. Petition and review.

Sec. 949. Enforcement.

Sec. 950. Investigations and power to subpoena.

Sec. 951. Referenda.

Sec. 952. Suspension and termination of order by Secretary.

Sec. 953. Regulations.

Sec. 954. Authorization of appropriations.

Subtitle D—Commodity Promotion and Evaluation

Sec. 961. Commodity promotion and evaluation.
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1 TITLE I—AGRICULTURAL

2 MARKET TRANSITION PROGRAM

3 SEC. 101. SHORT TITLE.

4 This title may be cited as the ‘‘Agricultural Market

5 Transition Act’’.

6 SEC. 102. DEFINITIONS.

7 In this title:

8 (1) CONSIDERED PLANTED.—The term ‘‘consid9 ered planted’’ means acreage that is considered plant10 ed under title V of the Agricultural Act of 1949 (7

11 U.S.C. 1461 et seq.) (as in effect prior to the suspen12 sion under section 110(b)(1)(J)).

13 (2) CONTRACT.—The term ‘‘contract’’ means a

14 production flexibility contract entered into under sec15 tion 103.

16 (3) CONTRACT ACREAGE.—The term ‘‘contract

17 acreage’’ means 1 or more crop acreage bases estab18 lished for contract commodities under title V of the

19 Agricultural Act of 1949 (as in effect prior to the sus20 pension under section 110(b)(1)(J)) that would have

21 been in effect for the 1996 crop (but for the suspension

22 under section 110(b)(1)(J)).

23 (4) CONTRACT COMMODITY.—The term ‘‘contract

24 commodity’’ means wheat, corn, grain sorghum, bar25 ley, oats, upland cotton, and rice.
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1 (5) CONTRACT PAYMENT.—The term ‘‘contract

2 payment’’ means a payment made under section 103

3 pursuant to a contract.

4 (6) CORN.—The term ‘‘corn’’ means field corn.

5 (7) DEPARTMENT.—The term ‘‘Department’’

6 means the United States Department of Agriculture.

7 (8) FARM PROGRAM PAYMENT YIELD.—The term

8 ‘‘farm program payment yield’’ means the farm pro9 gram payment yield established for the 1995 crop of

10 a contract commodity under title V of the Agricul11 tural Act of 1949 (as in effect prior to the suspension

12 under section 110(b)(1)(J)).

13 (9) LOAN COMMODITY.—The term ‘‘loan com14 modity’’ means each contract commodity, extra long

15 staple cotton, and oilseeds.

16 (10) OILSEED.—The term ‘‘oilseed’’ means a

17 crop of soybeans, sunflower seed, rapeseed, canola, saf18 flower, flaxseed, mustard seed, or, if designated by the

19 Secretary, other oilseeds.

20 (11) PERSON.—The term ‘‘person’’ means an in21 dividual, partnership, firm, joint-stock company, cor22 poration, association, trust, estate, or State agency.

23 (12) PRODUCER.—

24 (A) IN GENERAL.—The term ‘‘producer’’

25 means a person who, as owner, landlord, tenant,
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1 or sharecropper, shares in the risk of producing

2 a crop, and is entitled to share in the crop avail3 able for marketing from the farm, or would have

4 shared had the crop been produced.

5 (B) HYBRID SEED.—The term ‘‘producer’’

6 includes a person growing hybrid seed under

7 contract. In determining the interest of a grower

8 of hybrid seed in a crop, the Secretary shall not

9 take into consideration the existence of a hybrid

10 seed contract.

11 (13) PROGRAM.—The term ‘‘program’’ means the

12 agricultural market transition program established

13 under this title.

14 (14) SECRETARY.—The term ‘‘Secretary’’ means

15 the Secretary of Agriculture.

16 (15) STATE.—The term ‘‘State’’ means each of

17 the several States of the United States, the District of

18 Columbia, the Commonwealth of Puerto Rico, and

19 any other territory or possession of the United States.

20 (16) UNITED STATES.—The term ‘‘United

21 States’’, when used in a geographical sense, means all

22 of the States.

23 SEC. 103. PRODUCTION FLEXIBILITY CONTRACTS.

24 (a) CONTRACTS AUTHORIZED.—
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1 (1) OFFER AND TERMS.—Beginning as soon as

2 practicable after the date of the enactment of this

3 title, the Secretary shall offer to enter into a contract

4 with an eligible owner or operator described in para5 graph (2) on a farm containing eligible farmland.

6 Under the terms of a contract, the owner or operator

7 shall agree, in exchange for annual contract pay8 ments, to comply with—

9 (A) the conservation plan for the farm pre10 pared in accordance with section 1212 of the

11 Food Security Act of 1985 (16 U.S.C. 3812);

12 (B) wetland protection requirements appli13 cable to the farm under subtitle C of title XII of

14 the Act (16 U.S.C. 3821 et seq.); and

15 (C) the planting flexibility requirements of

16 subsection (j).

17 (2) ELIGIBLE OWNERS AND OPERATORS DE18 SCRIBED.—The following persons shall be considered

19 to be an owner or operator eligible to enter into a

20 contract:

21 (A) An owner of eligible farmland who as22 sumes all of the risk of producing a crop.

23 (B) An owner of eligible farmland who

24 shares in the risk of producing a crop.
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1 (C) An operator of eligible farmland with a

2 share-rent lease of the eligible farmland, regard3 less of the length of the lease, if the owner enters

4 into the same contract.

5 (D) An operator of eligible farmland who

6 cash rents the eligible farmland under a lease ex7 piring on or after September 30, 2002, in which

8 case the consent of the owner is not required.

9 (E) An operator of eligible farmland who

10 cash rents the eligible farmland under a lease ex11 piring before September 30, 2002, if the owner

12 consents to the contract.

13 (F) An owner of eligible farmland who cash

14 rents the eligible farmland and the lease term ex15 pires before September 30, 2002, but only if the

16 actual operator of the farm declines to enter into

17 a contract. In the case of an owner covered by

18 this subparagraph, contract payments shall not

19 begin under a contract until the fiscal year fol20 lowing the fiscal year in which the lease held by

21 the nonparticipating operator expires.

22 (G) An owner or operator described in a

23 preceding subparagraph regardless of whether the

24 owner or operator purchased catastrophic risk

25 protection for a fall-planted 1996 crop under sec-
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1 tion 508(b) of the Federal Crop Insurance Act (7

2 U.S.C. 1508(b)).

3 (3) TENANTS AND SHARECROPPERS.—In carry4 ing out this section, the Secretary shall provide ade5 quate safeguards to protect the interests of operators

6 who are tenants and sharecroppers.

7 (b) ELEMENTS.—

8 (1) TIME FOR CONTRACTING.—

9 (A) DEADLINE.—Except as provided in sub10 paragraph (B), the Secretary may not enter into

11 a contract after April 15, 1996.

12 (B) CONSERVATION RESERVE LANDS.—

13 (i) IN GENERAL.—At the beginning of

14 each fiscal year, the Secretary shall allow

15 an eligible owner or operator on a farm cov16 ered by a conservation reserve contract en17 tered into under section 1231 of the Food

18 Security Act of 1985 (16 U.S.C. 3831) that

19 terminates after the date specified in sub20 paragraph (A) to enter into or expand a

21 production flexibility contract to cover the

22 contract acreage of the farm that was sub23 ject to the former conservation reserve con24 tract.
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1 (ii) AMOUNT.—Contract payments

2 made for contract acreage under this sub3 paragraph shall be made at the rate and

4 amount applicable to the annual contract

5 payment level for the applicable crop.

6 (2) DURATION OF CONTRACT.—

7 (A) BEGINNING DATE.—A contract shall

8 begin with—

9 (i) the 1996 crop of a contract com10 modity; or

11 (ii) in the case of acreage that was sub12 ject to a conservation reserve contract de13 scribed in paragraph (1)(B), the date the

14 production flexibility contract was entered

15 into or expanded to cover the acreage.

16 (B) ENDING DATE.—A contract shall extend

17 through the 2002 crop.

18 (3) ESTIMATION OF CONTRACT PAYMENTS.—At

19 the time the Secretary enters into a contract, the Sec20 retary shall provide an estimate of the minimum con21 tract payments anticipated to be made during at

22 least the first fiscal year for which contract payments

23 will be made.

24 (c) ELIGIBLE FARMLAND DESCRIBED.—Land shall be

25 considered to be farmland eligible for coverage under a con-
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1 tract only if the land has contract acreage attributable to

2 the land and—

3 (1) for at least 1 of the 1991 through 1995 crops,

4 at least a portion of the land was enrolled in the acre5 age reduction program authorized for a crop of a con6 tract commodity under section 101B, 103B, 105B, or

7 107B of the Agricultural Act of 1949 (as in effect

8 prior to the amendment made by section 110(b)(2)) or

9 was considered planted, including land on a farm

10 that is owned or leased by a beginning farmer (as de11 termined by the Secretary) that the Secretary deter12 mines is necessary to establish a fair and equitable

13 crop acreage base;

14 (2) was subject to a conservation reserve contract

15 under section 1231 of the Food Security Act of 1985

16 (16 U.S.C. 3831) whose term expired, or was volun17 tarily terminated, on or after January 1, 1995; or

18 (3) is released from coverage under a conserva19 tion reserve contract by the Secretary during the pe20 riod beginning on January 1, 1995, and ending on

21 the date specified in subsection (b)(1)(A).

22 (d) TIME FOR PAYMENT.—

23 (1) IN GENERAL.—An annual contract payment

24 shall be made not later than September 30 of each of

25 fiscal years 1996 through 2002.
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1 (2) ADVANCE PAYMENTS.—

2 (A) FISCAL YEAR 1996.—At the option of the

3 owner or operator, 50 percent of the contract

4 payment for fiscal year 1996 shall be made not

5 later than June 15, 1996.

6 (B) SUBSEQUENT FISCAL YEARS.—At the

7 option of the owner or operator for fiscal year

8 1997 and each subsequent fiscal year, 50 percent

9 of the annual contract payment shall be made on

10 December 15.

11 (e) AMOUNTS AVAILABLE FOR CONTRACT PAYMENTS

12 FOR EACH FISCAL YEAR.—

13 (1) IN GENERAL.—The Secretary shall, to the

14 maximum extent practicable, expend on a fiscal year

15 basis the following amounts to satisfy the obligations

16 of the Secretary under all contracts:

17 (A) For fiscal year 1996, $5,570,000,000.

18 (B) For fiscal year 1997, $5,385,000,000.

19 (C) For fiscal year 1998, $5,800,000,000.

20 (D) For fiscal year 1999, $5,603,000,000.

21 (E) For fiscal year 2000, $5,130,000,000.

22 (F) For fiscal year 2001, $4,130,000,000.

23 (G) For fiscal year 2002, $4,008,000,000.
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1 (2) ALLOCATION.—The amount made available

2 for a fiscal year under paragraph (1) shall be allo3 cated as follows:

4 (A) For wheat, 26.26 percent.

5 (B) For corn, 46.22 percent.

6 (C) For grain sorghum, 5.11 percent.

7 (D) For barley, 2.16 percent.

8 (E) For oats, 0.15 percent.

9 (F) For upland cotton, 11.63 percent.

10 (G) For rice, 8.47 percent.

11 (3) ADJUSTMENT.—The Secretary shall adjust

12 the amounts allocated for each contract commodity

13 under paragraph (2) for a particular fiscal year by—

14 (A) subtracting an amount equal to the

15 amount, if any, necessary to satisfy payment re16 quirements under sections 103B, 105B, and

17 107B of the Agricultural Act of 1949 (as in effect

18 prior to the amendment made by section

19 110(b)(2)) for the 1994 and 1995 crops of the

20 commodity;

21 (B) adding an amount equal to the sum of

22 all repayments of deficiency payments received

23 under section 114(a)(2) of the Agricultural Act

24 of 1949 for the commodity;
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1 (C) to the maximum extent practicable,

2 adding an amount equal to the sum of all con3 tract payments withheld by the Secretary, at the

4 request of an owner or operator subject to a con5 tract, as an offset against repayments of defi6 ciency payments otherwise required under sec7 tion 114(a)(2) of the Act (as so in effect) for the

8 commodity; and

9 (D) adding an amount equal to the sum of

10 all refunds of contract payments received during

11 the preceding fiscal year under subsection (h) for

12 the commodity.

13 (4) ADDITIONAL RICE ALLOCATION.—In addition

14 to the allocations provided under paragraphs (1), (2),

15 and (3), the amounts made available for rice contract

16 payments shall be increased by $17,000,000 for each

17 of fiscal years 1997 through 2002.

18 (f) DETERMINATION OF CONTRACT PAYMENTS.—

19 (1) INDIVIDUAL PAYMENT QUANTITY OF CON20 TRACT COMMODITIES.—For each contract, the pay21 ment quantity of a contract commodity for each fiscal

22 year shall be equal to the product of—

23 (A) 85 percent of the contract acreage; and

24 (B) the farm program payment yield.
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1 (2) ANNUAL PAYMENT QUANTITY OF CONTRACT

2 COMMODITIES.—The payment quantity of each con3 tract commodity covered by all contracts for each fis4 cal year shall equal the sum of the amounts calculated

5 under paragraph (1) for each individual contract.

6 (3) ANNUAL PAYMENT RATE.—The payment rate

7 for a contract commodity for each fiscal year shall be

8 equal to—

9 (A) the amount made available under sub10 section (e) for the contract commodity for the fis11 cal year; divided by

12 (B) the amount determined under para13 graph (2) for the fiscal year.

14 (4) ANNUAL PAYMENT AMOUNT.—The amount to

15 be paid under a contract in effect for each fiscal year

16 with respect to a contract commodity shall be equal

17 to the product of—

18 (A) the payment quantity determined under

19 paragraph (1) with respect to the contract; and

20 (B) the payment rate in effect under para21 graph (3).

22 (5) ASSIGNMENT OF CONTRACT PAYMENTS.—The

23 provisions of section 8(g) of the Soil Conservation and

24 Domestic Allotment Act (16 U.S.C. 590h(g)) (relating

25 to assignment of payments) shall apply to contract
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1 payments under this subsection. The owner or opera2 tor making the assignment, or the assignee, shall pro3 vide the Secretary with notice, in such manner as the

4 Secretary may require in the contract, of any assign5 ment made under this paragraph.

6 (6) SHARING OF CONTRACT PAYMENTS.—The

7 Secretary shall provide for the sharing of contract

8 payments among the owners and operators subject to

9 the contract on a fair and equitable basis.

10 (g) PAYMENT LIMITATION.—The total amount of con11 tract payments made to a person under a contract during

12 any fiscal year may not exceed the payment limitations es13 tablished under sections 1001 through 1001C of the Food

14 Security Act of 1985 (7 U.S.C. 1308 through 1308–3).

15 (h) EFFECT OF VIOLATION.—

16 (1) TERMINATION OF CONTRACT.—Except as pro17 vided in paragraph (2), if an owner or operator sub18 ject to a contract violates the conservation plan for

19 the farm containing eligible farmland under the con20 tract, wetland protection requirements applicable to

21 the farm, or the planting flexibility requirements of

22 subsection (j), the Secretary shall terminate the con23 tract with respect to the owner or operator on each

24 farm in which the owner or operator has an interest.

25 On the termination, the owner or operator shall for-
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1 feit all rights to receive future contract payments on

2 each farm in which the owner or operator has an in3 terest and shall refund to the Secretary all contract

4 payments received by the owner or operator during

5 the period of the violation, together with interest on

6 the contract payments as determined by the Sec7 retary.

8 (2) REFUND OR ADJUSTMENT.—If the Secretary

9 determines that a violation does not warrant termi10 nation of the contract under paragraph (1), the Sec11 retary may require the owner or operator subject to

12 the contract—

13 (A) to refund to the Secretary that part of

14 the contract payments received by the owner or

15 operator during the period of the violation, to16 gether with interest on the contract payments as

17 determined by the Secretary; or

18 (B) to accept a reduction in the amount of

19 future contract payments that is proportionate

20 to the severity of the violation, as determined by

21 the Secretary.

22 (3) FORECLOSURE.—An owner or operator sub23 ject to a contract may not be required to make repay24 ments to the Secretary of amounts received under the

25 contract if the contract acreage has been foreclosed on
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1 and the Secretary determines that forgiving the re2 payments is appropriate in order to provide fair and

3 equitable treatment. This paragraph shall not void

4 the responsibilities of such an owner or operator

5 under the contract if the owner or operator continues

6 or resumes operation, or control, of the contract acre7 age. On the resumption of operation or control over

8 the contract acreage by the owner or operator, the

9 provisions of the contract in effect on the date of the

10 foreclosure shall apply.

11 (4) REVIEW.—A determination of the Secretary

12 under this subsection shall be considered to be an ad13 verse decision for purposes of the availability of ad14 ministrative review of the determination.

15 (i) TRANSFER OF INTEREST IN LANDS SUBJECT TO

16 CONTRACT.—

17 (1) EFFECT OF TRANSFER.—Except as provided

18 in paragraph (2), the transfer by an owner or opera19 tor subject to a contract of the right and interest of

20 the owner or operator in the contract acreage shall re21 sult in the termination of the contract with respect to

22 the acreage, effective on the date of the transfer, unless

23 the transferee of the acreage agrees with the Secretary

24 to assume all obligations of the contract. At the re25 quest of the transferee, the Secretary may modify the
26

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1 contract if the modifications are consistent with the

2 objectives of this section as determined by the Sec3 retary.

4 (2) EXCEPTION.—If an owner or operator who is

5 entitled to a contract payment dies, becomes incom6 petent, or is otherwise unable to receive the contract

7 payment, the Secretary shall make the payment, in

8 accordance with regulations prescribed by the Sec9 retary.

10 (j) PLANTING FLEXIBILITY.—

11 (1) PERMITTED CROPS.—Subject to paragraph

12 (2), any commodity or crop may be planted on con13 tract acreage on a farm.

14 (2) LIMITATIONS.—

15 (A) HAYING AND GRAZING.—

16 (i) TIME LIMITATIONS.—Haying and

17 grazing on land exceeding 15 percent of the

18 contract acreage on a farm as provided in

19 clause (iii) shall be permitted, except during

20 any consecutive 5-month period between

21 April 1 and October 31 that is determined

22 by the State committee established under

23 section 8(b) of the Soil Conservation and

24 Domestic Allotment Act (16 U.S.C. 590h(b))

25 for a State. In the case of a natural disas-
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1 ter, the Secretary may permit unlimited

2 haying and grazing on the contract acreage

3 of a farm.

4 (ii) CONTRACT COMMODITIES.—Con5 tract acreage planted to a contract commod6 ity during the crop year may be hayed or

7 grazed without limitation.

8 (iii) HAYING AND GRAZING LIMITATION

9 ON PORTION OF CONTRACT ACREAGE.—Un10 limited haying and grazing shall be per11 mitted on not more than 15 percent of the

12 contract acreage on a farm.

13 (B) ALFALFA.—Alfalfa may be planted for

14 harvest without limitation on the contract acre15 age on a farm, except that each contract acre

16 that is planted for harvest to alfalfa in excess of

17 15 percent of the total contract acreage on a

18 farm shall be ineligible for contract payments.

19 (C) FRUITS AND VEGETABLES.—

20 (i) IN GENERAL.—The planting for

21 harvest of fruits and vegetables shall be pro22 hibited on contract acreage, unless there is

23 a history of double cropping of a contract

24 commodity and fruits and vegetables.
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1 (ii) UNRESTRICTED VEGETABLES.—

2 Lentils, mung beans, and dry peas may be

3 planted without limitation on contract acre4 age.

5 (k) CONSERVATION FARM OPTION.—

6 (1) IN GENERAL.—The Secretary shall offer eligi7 ble owners and operators with contract acreage under

8 this title on a farm who also have entered into a con9 servation reserve program contract under subchapter

10 B of chapter 1 of subtitle D of title XII of the Food

11 Security Act of 1985 (7 U.S.C. 3831 et seq.), the op12 tion of entering into a conservation farm option con13 tract for a period of 10 years, as an alternative to the

14 market transition payment contract.

15 (2) TERMS.—Under the conservation farm op16 tion contract—

17 (A) the Secretary shall provide eligible own18 ers and operators with payments that reflect the

19 Secretary’s estimate of the payments and benefits

20 the eligible owner or operator is expected to re21 ceive during the 10-year period under—

22 (i) conservation cost-share programs

23 administered by the Secretary;

24 (ii) conservation reserve program rent25 al and cost-share payments;
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1 (iii) market transition payments; and

2 (iv) loan programs for contract com3 modities, oilseeds, and extra long staple cot4 ton; and

5 (B) the eligible owner and operator shall—

6 (i) forego eligibility to participate in

7 the conservation reserve program, conserva8 tion cost-share program payments, and

9 market transition contracts; and

10 (ii) comply with a conservation plan

11 for the farm approved by the Secretary that

12 is consistent with the State conservation

13 farm option plan established under para14 graph (3).

15 (3) STATE CONSERVATION FARM OPTION PLAN.—

16 In consultation with the State Technical Committee

17 established under section 1261 of the Food Security

18 Act of 1985 (16 U.S.C. 3801), the Secretary shall es19 tablish a plan for each State that is designed to—

20 (A) protect wildlife habitat;

21 (B) improve water quality; and

22 (C) reduce soil erosion.

23 SEC. 104. NONRECOURSE MARKETING ASSISTANCE LOANS

24 AND LOAN DEFICIENCY PAYMENTS.

25 (a) AVAILABILITY OF NONRECOURSE LOANS.—
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1 (1) AVAILABILITY.—For each of the 1996 through

2 2002 crops of each loan commodity, the Secretary

3 shall make available to producers on a farm

4 nonrecourse marketing assistance loans for loan com5 modities produced on the farm. The loans shall be

6 made under terms and conditions that are prescribed

7 by the Secretary and at the loan rate established

8 under subsection (b) for the loan commodity.

9 (2) ELIGIBLE PRODUCTION.—The following pro10 duction shall be eligible for a marketing assistance

11 loan under this section:

12 (A) In the case of a marketing assistance

13 loan for a contract commodity, any production

14 by a producer who has entered into a production

15 flexibility contract.

16 (B) In the case of a marketing assistance

17 loan for extra long staple cotton and oilseeds,

18 any production.

19 (b) LOAN RATES.—

20 (1) WHEAT.—

21 (A) LOAN RATE.—Subject to subparagraph

22 (B), the loan rate for a marketing assistance

23 loan for wheat shall be—

24 (i) not less than 85 percent of the sim25 ple average price received by producers of
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1 wheat, as determined by the Secretary, dur2 ing the marketing years for the immediately

3 preceding 5 crops of wheat, excluding the

4 year in which the average price was the

5 highest and the year in which the average

6 price was the lowest in the period; but

7 (ii) not more than $2.58 per bushel.

8 (B) STOCKS TO USE RATIO ADJUSTMENT.—

9 If the Secretary estimates for any marketing

10 year that the ratio of ending stocks of wheat to

11 total use for the marketing year will be—

12 (i) equal to or greater than 30 percent,

13 the Secretary may reduce the loan rate for

14 wheat for the corresponding crop by an

15 amount not to exceed 10 percent in any

16 year;

17 (ii) less than 30 percent but not less

18 than 15 percent, the Secretary may reduce

19 the loan rate for wheat for the correspond20 ing crop by an amount not to exceed 5 per21 cent in any year; or

22 (iii) less than 15 percent, the Secretary

23 may not reduce the loan rate for wheat for

24 the corresponding crop.
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1 (C) NO EFFECT ON FUTURE YEARS.—Any

2 reduction in the loan rate for wheat under sub3 paragraph (B) shall not be considered in deter4 mining the loan rate for wheat for subsequent

5 years.

6 (2) FEED GRAINS.—

7 (A) LOAN RATE FOR CORN.—Subject to sub8 paragraph (B), the loan rate for a marketing as9 sistance loan for corn shall be—

10 (i) not less than 85 percent of the sim11 ple average price received by producers of

12 corn, as determined by the Secretary, dur13 ing the marketing years for the immediately

14 preceding 5 crops of corn, excluding the

15 year in which the average price was the

16 highest and the year in which the average

17 price was the lowest in the period; but

18 (ii) not more than $1.89 per bushel.

19 (B) STOCKS TO USE RATIO ADJUSTMENT.—

20 If the Secretary estimates for any marketing

21 year that the ratio of ending stocks of corn to

22 total use for the marketing year will be—

23 (i) equal to or greater than 25 percent,

24 the Secretary may reduce the loan rate for

25 corn for the corresponding crop by an
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1 amount not to exceed 10 percent in any

2 year;

3 (ii) less than 25 percent but not less

4 than 12.5 percent, the Secretary may reduce

5 the loan rate for corn for the corresponding

6 crop by an amount not to exceed 5 percent

7 in any year; or

8 (iii) less than 12.5 percent the Sec9 retary may not reduce the loan rate for corn

10 for the corresponding crop.

11 (C) NO EFFECT ON FUTURE YEARS.—Any

12 reduction in the loan rate for corn under sub13 paragraph (B) shall not be considered in deter14 mining the loan rate for corn for subsequent

15 years.

16 (D) OTHER FEED GRAINS.—The loan rate

17 for a marketing assistance loan for grain sor18 ghum, barley, and oats, respectively, shall be es19 tablished at such level as the Secretary deter20 mines is fair and reasonable in relation to the

21 rate that loans are made available for corn, tak22 ing into consideration the feeding value of the

23 commodity in relation to corn.

24 (3) UPLAND COTTON.—
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1 (A) LOAN RATE.—Subject to subparagraph

2 (B), the loan rate for a marketing assistance

3 loan for upland cotton shall be established by the

4 Secretary at such loan rate, per pound, as will

5 reflect for the base quality of upland cotton, as

6 determined by the Secretary, at average locations

7 in the United States a rate that is not less than

8 the smaller of—

9 (i) 85 percent of the average price

10 (weighted by market and month) of the base

11 quality of cotton as quoted in the designated

12 United States spot markets during 3 years

13 of the 5-year period ending July 31 in the

14 year in which the loan rate is announced,

15 excluding the year in which the average

16 price was the highest and the year in which

17 the average price was the lowest in the pe18 riod; or

19 (ii) 90 percent of the average, for the

20 15-week period beginning July 1 of the year

21 in which the loan rate is announced, of the

22 5 lowest-priced growths of the growths

quoted for Middling 13 23 ⁄32-inch cotton C.I.F.

24 Northern Europe (adjusted downward by

25 the average difference during the period
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1 April 15 through October 15 of the year in

2 which the loan is announced between the av3 erage Northern European price quotation of

4 such quality of cotton and the market

5 quotations in the designated United States

6 spot markets for the base quality of upland

7 cotton), as determined by the Secretary.

8 (B) LIMITATIONS.—The loan rate for a

9 marketing assistance loan for upland cotton shall

10 not be less than $0.50 per pound or more than

11 $0.5192 per pound.

12 (4) EXTRA LONG STAPLE COTTON.—The loan

13 rate for a marketing assistance loan for extra long

14 staple cotton shall be—

15 (A) not less than 85 percent of the simple

16 average price received by producers of extra long

17 staple cotton, as determined by the Secretary,

18 during 3 years of the 5 previous marketing

19 years, excluding the year in which the average

20 price was the highest and the year in which the

21 average price was the lowest in the period; but

22 (B) not more than $0.7965 per pound.

23 (5) RICE.—The loan rate for a marketing assist24 ance loan for rice shall be $6.50 per hundredweight.

25 (6) OILSEEDS.—
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1 (A) SOYBEANS.—The loan rate for a mar2 keting assistance loan for soybeans shall be—

3 (i) not less than 85 percent of the sim4 ple average price received by producers of

5 soybeans, as determined by the Secretary,

6 during the marketing years for the imme7 diately preceding 5 crops of soybeans, ex8 cluding the year in which the average price

9 was the highest and the year in which the

10 average price was the lowest in the period;

11 but

12 (ii) not less than $4.92 or more than

13 $5.26 per bushel.

14 (B) SUNFLOWER SEED, CANOLA, RAPESEED,

15 SAFFLOWER, MUSTARD SEED, AND FLAXSEED.—

16 The loan rate for a marketing assistance loan for

17 sunflower seed, canola, rapeseed, safflower, mus18 tard seed, and flaxseed, individually, shall be—

19 (i) not less than 85 percent of the sim20 ple average price received by producers of

21 sunflower seed, individually, as determined

22 by the Secretary, during the marketing

23 years for the immediately preceding 5 crops

24 of sunflower seed, individually, excluding

25 the year in which the average price was the
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1 highest and the year in which the average

2 price was the lowest in the period; but

3 (ii) not less than $0.087 or more than

4 $0.093 per pound.

5 (C) OTHER OILSEEDS.—The loan rates for

6 a marketing assistance loan for other oilseeds

7 shall be established at such level as the Secretary

8 determines is fair and reasonable in relation to

9 the loan rate available for soybeans, except in no

10 event shall the rate for the oilseeds (other than

11 cottonseed) be less than the rate established for

12 soybeans on a per-pound basis for the same crop.

13 (c) TERM OF LOAN.—In the case of each loan commod14 ity (other than upland cotton or extra long staple cotton),

15 a marketing assistance loan under subsection (a) shall have

16 a term of 9 months beginning on the first day of the first

17 month after the month in which the loan is made. A market18 ing assistance loan for upland cotton or extra long staple

19 cotton shall have a term of 10 months beginning on the first

20 day of the first month after the month in which the loan

21 is made. The Secretary may not extend the term of a mar22 keting assistance loan for any loan commodity.

23 (d) REPAYMENT.—

24 (1) REPAYMENT RATES FOR WHEAT AND FEED

25 GRAINS.—The Secretary shall permit a producer to
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1 repay a marketing assistance loan under subsection

2 (a) for wheat, corn, grain sorghum, barley, and oats

3 at a level that the Secretary determines will—

4 (A) minimize potential loan forfeitures;

5 (B) minimize the accumulation of stocks of

6 the commodities by the Federal Government;

7 (C) minimize the cost incurred by the Fed8 eral Government in storing the commodities; and

9 (D) allow the commodities produced in the

10 United States to be marketed freely and competi11 tively, both domestically and internationally.

12 (2) REPAYMENT RATES FOR UPLAND COTTON,

13 OILSEEDS, AND RICE.—The Secretary shall permit

14 producers to repay a marketing assistance loan under

15 subsection (a) for upland cotton, oilseeds, and rice at

16 a level that is the lesser of—

17 (A) the loan rate established for upland cot18 ton, oilseeds, and rice, respectively, under sub19 section (b); or

20 (B) the prevailing world market price for

21 upland cotton, oilseeds, and rice, respectively

22 (adjusted to United States quality and location),

23 as determined by the Secretary.

24 (3) REPAYMENT RATES FOR EXTRA LONG STAPLE

25 COTTON.—Repayment of a marketing assistance loan
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1 for extra long staple cotton shall be at the loan rate

2 established for the commodity under subsection (b),

3 plus interest (as determined by the Secretary).

4 (4) PREVAILING WORLD MARKET PRICE.—For

5 purposes of paragraph (2)(B) and subsection (f), the

6 Secretary shall prescribe by regulation—

7 (A) a formula to determine the prevailing

8 world market price for each loan commodity, ad9 justed to United States quality and location; and

10 (B) a mechanism by which the Secretary

11 shall announce periodically the prevailing world

12 market price for each loan commodity.

13 (5) ADJUSTMENT OF PREVAILING WORLD MAR14 KET PRICE FOR UPLAND COTTON.—

15 (A) IN GENERAL.—During the period end16 ing July 31, 2003, the prevailing world market

17 price for upland cotton (adjusted to United

18 States quality and location) established under

19 paragraph (4) shall be further adjusted if—

20 (i) the adjusted prevailing world mar21 ket price is less than 115 percent of the loan

22 rate for upland cotton established under

23 subsection (b), as determined by the Sec24 retary; and
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1 (ii) the Friday through Thursday aver2 age price quotation for the lowest-priced

3 United States growth as quoted for Middling (M) 13 4 ⁄32-inch cotton delivered C.I.F.

5 Northern Europe is greater than the Friday

6 through Thursday average price of the 5

7 lowest-priced growths of upland cotton, as

quoted for Middling (M) 13 8 ⁄32-inch cotton,

9 delivered C.I.F. Northern Europe (referred

10 to in this subsection as the ‘‘Northern Eu11 rope price’’).

12 (B) FURTHER ADJUSTMENT.—Except as

13 provided in subparagraph (C), the adjusted pre14 vailing world market price for upland cotton

15 shall be further adjusted on the basis of some or

16 all of the following data, as available:

17 (i) The United States share of world

18 exports.

19 (ii) The current level of cotton export

20 sales and cotton export shipments.

21 (iii) Other data determined by the Sec22 retary to be relevant in establishing an ac23 curate prevailing world market price for

24 upland cotton (adjusted to United States

25 quality and location).
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1 (C) LIMITATION ON FURTHER ADJUST2 MENT.—The adjustment under subparagraph (B)

3 may not exceed the difference between—

4 (i) the Friday through Thursday aver5 age price for the lowest-priced United States

growth as quoted for Middling 13 6 ⁄32-inch

7 cotton delivered C.I.F. Northern Europe;

8 and

9 (ii) the Northern Europe price.

10 (e) LOAN DEFICIENCY PAYMENTS.—

11 (1) AVAILABILITY.—Except as provided in para12 graph (4), the Secretary may make loan deficiency

13 payments available to producers who, although eligi14 ble to obtain a marketing assistance loan under sub15 section (a) with respect to a loan commodity, agree

16 to forgo obtaining the loan for the commodity in re17 turn for payments under this subsection.

18 (2) COMPUTATION.—A loan deficiency payment

19 under this subsection shall be computed by multiply20 ing—

21 (A) the loan payment rate determined

22 under paragraph (3) for the loan commodity; by

23 (B) the quantity of the loan commodity that

24 the producers on a farm are eligible to place

25 under loan but for which the producers forgo ob-
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1 taining the loan in return for payments under

2 this subsection.

3 (3) LOAN PAYMENT RATE.—For purposes of this

4 subsection, the loan payment rate shall be the amount

5 by which—

6 (A) the loan rate established under sub7 section (b) for the loan commodity; exceeds

8 (B) the rate at which a loan for the com9 modity may be repaid under subsection (d).

10 (4) EXCEPTION FOR EXTRA LONG STAPLE COT11 TON.—This subsection shall not apply with respect to

12 extra long staple cotton.

13 (f) SPECIAL MARKETING LOAN PROVISIONS FOR UP14 LAND COTTON.—

15 (1) COTTON USER MARKETING CERTIFICATES.—

16 (A) ISSUANCE.—Subject to subparagraph

17 (D), during the period ending July 31, 2003, the

18 Secretary shall issue marketing certificates or

19 cash payments to domestic users and exporters

20 for documented purchases by domestic users and

21 sales for export by exporters made in the week

22 following a consecutive 4-week period in which—

23 (i) the Friday through Thursday aver24 age price quotation for the lowest-priced

25 United States growth, as quoted for Mid-
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dling (M) 13 1 ⁄32-inch cotton, delivered C.I.F.

2 Northern Europe exceeds the Northern Eu3 rope price by more than 1.25 cents per

4 pound; and

5 (ii) the prevailing world market price

6 for upland cotton (adjusted to United States

7 quality and location) does not exceed 130

8 percent of the loan rate for upland cotton

9 established under subsection (b).

10 (B) VALUE OF CERTIFICATES OR PAY11 MENTS.—The value of the marketing certificates

12 or cash payments shall be based on the amount

13 of the difference (reduced by 1.25 cents per

14 pound) in the prices during the 4th week of the

15 consecutive 4-week period multiplied by the

16 quantity of upland cotton included in the docu17 mented sales.

18 (C) ADMINISTRATION OF MARKETING CER19 TIFICATES.—

20 (i) REDEMPTION, MARKETING, OR EX21 CHANGE.—The Secretary shall establish

22 procedures for redeeming marketing certifi23 cates for cash or marketing or exchange of

24 the certificates for agricultural commodities

25 owned by the Commodity Credit Corpora-
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1 tion in such manner, and at such price lev2 els, as the Secretary determines will best ef3 fectuate the purposes of cotton user market4 ing certificates. Any price restrictions that

5 would otherwise apply to the disposition of

6 agricultural commodities by the Commodity

7 Credit Corporation shall not apply to the

8 redemption of certificates under this para9 graph.

10 (ii) DESIGNATION OF COMMODITIES

11 AND PRODUCTS.—To the extent practicable,

12 the Secretary shall permit owners of certifi13 cates to designate the commodities and

14 products, including storage sites, the owners

15 would prefer to receive in exchange for cer16 tificates. If any certificate is not presented

17 for redemption, marketing, or exchange

18 within a reasonable number of days after

19 the issuance of the certificate (as determined

20 by the Secretary), reasonable costs of storage

21 and other carrying charges, as determined

22 by the Secretary, shall be deducted from the

23 value of the certificate for the period begin24 ning after the reasonable number of days

25 and ending with the date of the presentation
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1 of the certificate to the Commodity Credit

2 Corporation.

3 (iii) TRANSFERS.—Marketing certifi4 cates issued to domestic users and exporters

5 of upland cotton may be transferred to other

6 persons in accordance with regulations is7 sued by the Secretary.

8 (D) EXCEPTION.—The Secretary shall not

9 issue marketing certificates or cash payments

10 under subparagraph (A) if, for the immediately

11 preceding consecutive 10-week period, the Friday

12 through Thursday average price quotation for the

13 lowest priced United States growth, as quoted for

Middling (M) 13 14 ⁄32-inch cotton, delivered C.I.F.

15 Northern Europe, adjusted for the value of any

16 certificate issued under this paragraph, exceeds

17 the Northern Europe price by more than 1.25

18 cents per pound.

19 (E) LIMITATION ON EXPENDITURES.—Total

20 expenditures under this paragraph shall not ex21 ceed $701,000,000 during fiscal years 1996

22 through 2002.

23 (2) SPECIAL IMPORT QUOTA.—

24 (A) ESTABLISHMENT.—The President shall

25 carry out an import quota program that pro-
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1 vides that, during the period ending July 31,

2 2003, whenever the Secretary determines and an3 nounces that for any consecutive 10-week period,

4 the Friday through Thursday average price

5 quotation for the lowest-priced United States

growth, as quoted for Middling (M) 13 6 ⁄32-inch

7 cotton, delivered C.I.F. Northern Europe, ad8 justed for the value of any certificates issued

9 under paragraph (1), exceeds the Northern Eu10 rope price by more than 1.25 cents per pound,

11 there shall immediately be in effect a special im12 port quota.

13 (B) QUANTITY.—The quota shall be equal to

14 1 week’s consumption of upland cotton by domes15 tic mills at the seasonally adjusted average rate

16 of the most recent 3 months for which data are

17 available.

18 (C) APPLICATION.—The quota shall apply

19 to upland cotton purchased not later than 90

20 days after the date of the Secretary’s announce21 ment under subparagraph (A) and entered into

22 the United States not later than 180 days after

23 the date.

24 (D) OVERLAP.—A special quota period may

25 be established that overlaps any existing quota
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1 period if required by subparagraph (A), except

2 that a special quota period may not be estab3 lished under this paragraph if a quota period

4 has been established under subsection (g).

5 (E) PREFERENTIAL TARIFF TREATMENT.—

6 The quantity under a special import quota shall

7 be considered to be an in-quota quantity for pur8 poses of—

9 (i) section 213(d) of the Caribbean

10 Basin Economic Recovery Act (19 U.S.C.

11 2703(d));

12 (ii) section 204 of the Andean Trade

13 Preference Act (19 U.S.C. 3203);

14 (iii) section 503(d) of the Trade Act of

15 1974 (19 U.S.C. 2463(d)); and

16 (iv) General Note 3(a)(iv) to the Har17 monized Tariff Schedule.

18 (F) DEFINITION.—In this paragraph, the

19 term ‘‘special import quota’’ means a quantity of

20 imports that is not subject to the over-quota tar21 iff rate of a tariff-rate quota.

22 (g) LIMITED GLOBAL IMPORT QUOTA FOR UPLAND

23 COTTON.—

24 (1) IN GENERAL.—The President shall carry out

25 an import quota program that provides that whenever
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1 the Secretary determines and announces that the av2 erage price of the base quality of upland cotton, as de3 termined by the Secretary, in the designated spot

4 markets for a month exceeded 130 percent of the aver5 age price of such quality of cotton in the markets for

6 the preceding 36 months, notwithstanding any other

7 provision of law, there shall immediately be in effect

8 a limited global import quota subject to the following

9 conditions:

10 (A) QUANTITY.—The quantity of the quota

11 shall be equal to 21 days of domestic mill con12 sumption of upland cotton at the seasonally ad13 justed average rate of the most recent 3 months

14 for which data are available.

15 (B) QUANTITY IF PRIOR QUOTA.—If a quota

16 has been established under this subsection during

17 the preceding 12 months, the quantity of the

18 quota next established under this subsection shall

19 be the smaller of 21 days of domestic mill con20 sumption calculated under subparagraph (A) or

21 the quantity required to increase the supply to

22 130 percent of the demand.

23 (C) PREFERENTIAL TARIFF TREATMENT.—

24 The quantity under a limited global import
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1 quota shall be considered to be an in-quota quan2 tity for purposes of—

3 (i) section 213(d) of the Caribbean

4 Basin Economic Recovery Act (19 U.S.C.

5 2703(d));

6 (ii) section 204 of the Andean Trade

7 Preference Act (19 U.S.C. 3203);

8 (iii) section 503(d) of the Trade Act of

9 1974 (19 U.S.C. 2463(d)); and

10 (iv) General Note 3(a)(iv) to the Har11 monized Tariff Schedule.

12 (D) DEFINITIONS.—In this subsection:

13 (i) SUPPLY.—The term ‘‘supply’’

14 means, using the latest official data of the

15 Bureau of the Census, the Department of

16 Agriculture, and the Department of the

17 Treasury—

18 (I) the carry-over of upland cotton

19 at the beginning of the marketing year

20 (adjusted to 480-pound bales) in which

21 the quota is established;

22 (II) production of the current

23 crop; and

24 (III) imports to the latest date

25 available during the marketing year.
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1 (ii) DEMAND.—The term ‘‘demand’’

2 means—

3 (I) the average seasonally adjusted

4 annual rate of domestic mill consump5 tion in the most recent 3 months for

6 which data are available; and

7 (II) the larger of—

8 (aa) average exports of up9 land cotton during the preceding

10 6 marketing years; or

11 (bb) cumulative exports of

12 upland cotton plus outstanding

13 export sales for the marketing

14 year in which the quota is estab15 lished.

16 (iii) LIMITED GLOBAL IMPORT

17 QUOTA.—The term ‘‘limited global import

18 quota’’ means a quantity of imports that is

19 not subject to the over-quota tariff rate of a

20 tariff-rate quota.

21 (E) QUOTA ENTRY PERIOD.—When a quota

22 is established under this subsection, cotton may

23 be entered under the quota during the 90-day pe24 riod beginning on the date the quota is estab25 lished by the Secretary.
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1 (2) NO OVERLAP.—Notwithstanding paragraph

2 (1), a quota period may not be established that over3 laps an existing quota period or a special quota pe4 riod established under subsection (f)(2).

5 (h) SOURCE OF LOANS.—

6 (1) IN GENERAL.—The Secretary shall provide

7 the loans authorized by this section through the Com8 modity Credit Corporation and other means available

9 to the Secretary.

10 (2) PROCESSORS.—Whenever any loan or sur11 plus removal operation for any agricultural commod12 ity is carried out through purchases from or loans or

13 payments to processors, the Secretary shall, to the ex14 tent practicable, obtain from the processors such as15 surances as the Secretary considers adequate that the

16 producers of the commodity have received or will re17 ceive maximum benefits from the loan or surplus re18 moval operation.

19 (i) ADJUSTMENTS OF LOANS.—

20 (1) IN GENERAL.—The Secretary may make ap21 propriate adjustments in the loan levels for any com22 modity for differences in grade, type, quality, loca23 tion, and other factors.

24 (2) LOAN LEVEL.—The adjustments shall, to the

25 maximum extent practicable, be made in such man-
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1 ner that the average loan level for the commodity will,

2 on the basis of the anticipated incidence of the factors,

3 be equal to the level of support determined as pro4 vided in this section.

5 (j) PERSONAL LIABILITY OF PRODUCERS FOR DEFI6 CIENCIES.—

7 (1) IN GENERAL.—Except as provided in para8 graph (2), no producer shall be personally liable for

9 any deficiency arising from the sale of the collateral

10 securing any nonrecourse loan made under this sec11 tion unless the loan was obtained through a fraudu12 lent representation by the producer.

13 (2) LIMITATIONS.—Paragraph (1) shall not pre14 vent the Commodity Credit Corporation or the Sec15 retary from requiring a producer to assume liability

16 for—

17 (A) a deficiency in the grade, quality, or

18 quantity of a commodity stored on a farm or de19 livered by the producer;

20 (B) a failure to properly care for and pre21 serve a commodity; or

22 (C) a failure or refusal to deliver a com23 modity in accordance with a program estab24 lished under this section.
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1 (3) ACQUISITION OF COLLATERAL.—The Sec2 retary may include in a contract for a nonrecourse

3 loan made under this section a provision that permits

4 the Commodity Credit Corporation, on and after the

5 maturity of the loan or any extension of the loan, to

6 acquire title to the unredeemed collateral without obli7 gation to pay for any market value that the collateral

8 may have in excess of the loan indebtedness.

9 (4) SUGARCANE AND SUGAR BEETS.—A security

10 interest obtained by the Commodity Credit Corpora11 tion as a result of the execution of a security agree12 ment by the processor of sugarcane or sugar beets

13 shall be superior to all statutory and common law

14 liens on raw cane sugar and refined beet sugar in

15 favor of the producers of sugarcane and sugar beets

16 and all prior recorded and unrecorded liens on the

17 crops of sugarcane and sugar beets from which the

18 sugar was derived.

19 (k) COMMODITY CREDIT CORPORATION SALES PRICE

20 RESTRICTIONS.—

21 (1) IN GENERAL.—The Commodity Credit Cor22 poration may sell any commodity owned or controlled

23 by the Corporation at any price that the Secretary

24 determines will maximize returns to the Corporation.
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1 (2) NONAPPLICATION OF SALES PRICE RESTRIC2 TIONS.—Paragraph (1) shall not apply to—

3 (A) a sale for a new or byproduct use;

4 (B) a sale of peanuts or oilseeds for the ex5 traction of oil;

6 (C) a sale for seed or feed if the sale will

7 not substantially impair any loan program;

8 (D) a sale of a commodity that has substan9 tially deteriorated in quality or as to which

10 there is a danger of loss or waste through deterio11 ration or spoilage;

12 (E) a sale for the purpose of establishing a

13 claim arising out of a contract or against a per14 son who has committed fraud, misrepresentation,

15 or other wrongful act with respect to the com16 modity;

17 (F) a sale for export, as determined by the

18 Corporation; and

19 (G) a sale for other than a primary use.

20 (3) PRESIDENTIAL DISASTER AREAS.—

21 (A) IN GENERAL.—Notwithstanding para22 graph (1), on such terms and conditions as the

23 Secretary may consider in the public interest,

24 the Corporation may make available any com-
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1 modity or product owned or controlled by the

2 Corporation for use in relieving distress—

3 (i) in any area in the United States

4 (including the Virgin Islands) declared by

5 the President to be an acute distress area

6 because of unemployment or other economic

7 cause, if the President finds that the use

8 will not displace or interfere with normal

9 marketing of agricultural commodities; and

10 (ii) in connection with any major dis11 aster determined by the President to war12 rant assistance by the Federal Government

13 under the Robert T. Stafford Disaster Relief

14 and Emergency Assistance Act (42 U.S.C.

15 5121 et seq.).

16 (B) COSTS.—Except on a reimbursable

17 basis, the Corporation shall not bear any costs in

18 connection with making a commodity available

19 under subparagraph (A) beyond the cost of the

20 commodity to the Corporation incurred in—

21 (i) the storage of the commodity; and

22 (ii) the handling and transportation

23 costs in making delivery of the commodity

24 to designated agencies at 1 or more central

25 locations in each State or other area.
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1 (4) EFFICIENT OPERATIONS.—Paragraph (1)

2 shall not apply to the sale of a commodity the dis3 position of which is desirable in the interest of the ef4 fective and efficient conduct of the operations of the

5 Corporation because of the small quantity of the com6 modity involved, or because of the age, location, or

7 questionable continued storability of the commodity.

8 SEC. 105. PAYMENT LIMITATIONS.

9 (a) IN GENERAL.—Section 1001 of the Food Security

10 Act of 1985 (7 U.S.C. 1308) is amended by striking para11 graphs (1) through (4) and inserting the following:

12 ‘‘(1) LIMITATION ON PAYMENTS UNDER PRODUC13 TION FLEXIBILITY CONTRACTS.—The total amount of

14 contract payments made under section 103 of the Ag15 ricultural Market Transition Act to a person under 1

16 or more production flexibility contracts during any

17 fiscal year may not exceed $40,000.

18 ‘‘(2) LIMITATION ON MARKETING LOAN GAINS

19 AND LOAN DEFICIENCY PAYMENTS.—

20 ‘‘(A) LIMITATION.—The total amount of

21 payments specified in subparagraph (B) that a

22 person shall be entitled to receive under section

23 104 of the Agricultural Market Transition Act

24 for contract commodities and oilseeds during

25 any crop year may not exceed $75,000.
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1 ‘‘(B) DESCRIPTION OF PAYMENTS.—The

2 payments referred to in subparagraph (A) are

3 the following:

4 ‘‘(i) Any gain realized by a producer

5 from repaying a marketing assistance loan

6 for a crop of any loan commodity at a

7 lower level than the original loan rate estab8 lished for the commodity under section

9 104(b) of the Act.

10 ‘‘(ii) Any loan deficiency payment re11 ceived for a loan commodity under section

12 104(e) of the Act.’’.

13 (b) CONFORMING AMENDMENTS.—

14 (1) Section 1001 of the Food Security Act of

15 1985 (7 U.S.C. 1308) (as amended by subsection (a))

16 is amended—

17 (A) by redesignating paragraphs (5), (6),

18 and (7) as paragraphs (3), (4), and (5), respec19 tively; and

20 (B) in the second sentence of paragraph

21 (3)(A) (as so redesignated), by striking ‘‘para22 graphs (6) and (7)’’ and inserting ‘‘paragraphs

23 (4) and (5)’’.

24 (2) Section 1305(d) of the Agricultural Rec25 onciliation Act of 1987 (Public Law 100–203; 7
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1 U.S.C. 1308 note) is amended by striking ‘‘para2 graphs (5) through (7) of section 1001, as amended by

3 this subtitle,’’ and inserting ‘‘paragraphs (3) through

4 (5) of section 1001,’’.

5 (3) Section 1001A of the Food Security Act of

6 1985 (7 U.S.C. 1308–1(a)(1)) is amended—

7 (A) in the first sentence of subsection

8 (a)(1)—

9 (i) by striking ‘‘section 1001(5)(B)(i)’’

10 and inserting ‘‘section 1001(3)(B)(i)’’;

11 (ii) by striking ‘‘under the Agricul12 tural Act of 1949 (7 U.S.C. 1421 et seq.)’’;

13 and

14 (iii) by striking ‘‘section

15 1001(5)(B)(i)(II)’’ and inserting ‘‘section

16 1001(3)(B)(i)(II)’’; and

17 (B) in subsection (b)—

18 (i) in paragraph (1)—

19 (I) by striking ‘‘under the Agri20 cultural Act of 1949’’; and

21 (II) by striking ‘‘section

22 1001(5)(B)(i)’’ and inserting ‘‘section

23 1001(3)(B)(i)’’; and
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1 (ii) in paragraph (2)(B), by striking

2 ‘‘section 1001(5)(B)(i)(II)’’ and inserting

3 ‘‘section 1001(3)(B)(i)(II)’’.

4 (4) Section 1001C(a) of the Food Security Act of

5 1985 (7 U.S.C. 1308–3(a)) is amended—

6 (A) by striking ‘‘For each of the 1991

7 through 1997 crops, any’’ and inserting ‘‘Any’’;

8 (B) by striking ‘‘price support program

9 loans, payments, or benefits made available

10 under the Agricultural Act of 1949 (7 U.S.C.

11 1421 et seq.),’’ and inserting ‘‘loans or payments

12 made available under the Agricultural Market

13 Transition Act’’; and

14 (C) by striking ‘‘during the 1989 through

15 1997 crop years’’.

16 SEC. 106. PEANUT PROGRAM.

17 (a) QUOTA PEANUTS.—

18 (1) AVAILABILITY OF LOANS.—The Secretary

19 shall make nonrecourse loans available to producers of

20 quota peanuts.

21 (2) LOAN RATE.—The national average quota

22 loan rate for quota peanuts shall be $610 per ton.

23 (3) INSPECTION, HANDLING, OR STORAGE.—The

24 loan amount may not be reduced by the Secretary by

25 any deductions for inspection, handling, or storage.
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1 (4) LOCATION AND OTHER FACTORS.—The Sec2 retary may make adjustments in the loan rate for

3 quota peanuts for location of peanuts and such other

4 factors as are authorized by section 104(i)(1).

5 (b) ADDITIONAL PEANUTS.—

6 (1) IN GENERAL.—The Secretary shall make

7 nonrecourse loans available to producers of additional

8 peanuts at such rates as the Secretary finds appro9 priate, taking into consideration the demand for pea10 nut oil and peanut meal, expected prices of other veg11 etable oils and protein meals, and the demand for

12 peanuts in foreign markets.

13 (2) ANNOUNCEMENT.—The Secretary shall an14 nounce the loan rate for additional peanuts of each

15 crop not later than February 15 preceding the mar16 keting year for the crop for which the loan rate is

17 being determined.

18 (c) AREA MARKETING ASSOCIATIONS.—

19 (1) WAREHOUSE STORAGE LOANS.—

20 (A) IN GENERAL.—In carrying out sub21 sections (a) and (b), the Secretary shall make

22 warehouse storage loans available in each of the

23 producing areas (described in section 1446.95 of

24 title 7 of the Code of Federal Regulations (Janu25 ary 1, 1989)) to a designated area marketing as-
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1 sociation of peanut producers that is selected and

2 approved by the Secretary and that is operated

3 primarily for the purpose of conducting the loan

4 activities. The Secretary may not make ware5 house storage loans available to any cooperative

6 that is engaged in operations or activities con7 cerning peanuts other than those operations and

8 activities specified in this section and section

9 358e of the Agricultural Adjustment Act of 1938

10 (7 U.S.C. 1359a).

11 (B) ADMINISTRATIVE AND SUPERVISORY AC12 TIVITIES.—An area marketing association shall

13 be used in administrative and supervisory ac14 tivities relating to loans and marketing activities

15 under this section and section 358e of the Agri16 cultural Adjustment Act of 1938 (7 U.S.C.

17 1359a).

18 (C) ASSOCIATION COSTS.—Loans made to

19 the association under this paragraph shall in20 clude such costs as the area marketing associa21 tion reasonably may incur in carrying out the

22 responsibilities, operations, and activities of the

23 association under this section and section 358e of

24 the Agricultural Adjustment Act of 1938 (7

25 U.S.C. 1359a).
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1 (2) POOLS FOR QUOTA AND ADDITIONAL PEA2 NUTS.—

3 (A) IN GENERAL.—The Secretary shall re4 quire that each area marketing association estab5 lish pools and maintain complete and accurate

6 records by area and segregation for quota pea7 nuts handled under loan and for additional pea8 nuts placed under loan, except that separate

9 pools shall be established for Valencia peanuts

10 produced in New Mexico.

11 (B) ELIGIBILITY TO PARTICIPATE.—

12 (i) IN GENERAL.—Except as provided

13 in clause (ii), in the case of the 1996 and

14 subsequent crops, Valencia peanuts not

15 physically produced in the State of New

16 Mexico shall not be eligible to participate in

17 the pools of the State.

18 (ii) EXCEPTION.—A resident of the

19 State of New Mexico may enter Valencia

20 peanuts that are produced outside of the

21 State into the pools of the State in a quan22 tity that is not greater than the 1995 crop

23 of the resident that was produced outside

24 the State.
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1 (C) TYPES OF PEANTUS.—Bright hull and

2 dark hull Valencia peanuts shall be considered as

3 separate types for the purpose of establishing the

4 pools.

5 (D) NET GAINS.—Net gains on peanuts in

6 each pool, unless otherwise approved by the Sec7 retary, shall be distributed only to producers who

8 placed peanuts in the pool and shall be distrib9 uted in proportion to the value of the peanuts

10 placed in the pool by each producer. Net gains

11 for peanuts in each pool shall consist of the fol12 lowing:

13 (i) QUOTA PEANUTS.—For quota pea14 nuts, the net gains over and above the loan

15 indebtedness and other costs or losses in16 curred on peanuts placed in the pool.

17 (ii) ADDITIONAL PEANUTS.—For addi18 tional peanuts, the net gains over and above

19 the loan indebtedness and other costs or

20 losses incurred on peanuts placed in the

21 pool for additional peanuts.

22 (d) LOSSES.—Losses in quota area pools shall be cov23 ered using the following sources in the following order of

24 priority:
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1 (1) TRANSFERS FROM ADDITIONAL LOAN

2 POOLS.—The proceeds due any producer from any

3 pool shall be reduced by the amount of any loss that

4 is incurred with respect to peanuts transferred from

5 an additional loan pool to a quota loan pool by the

6 producer under section 358–1(b)(8) of the Agricul7 tural Adjustment Act of 1938 (7 U.S.C. 1358–

8 1(b)(8)).

9 (2) OTHER PRODUCERS IN SAME POOL.—Further

10 losses in an area quota pool shall be offset by reduc11 ing the gain of any producer in the pool by the

12 amount of pool gains attributed to the same producer

13 from the sale of additional peanuts for domestic and

14 export edible use.

15 (3) OFFSET WITHIN AREA.—Further losses in an

16 area quota pool shall be offset by any gains or profits

17 from additional peanuts (other than separate type

18 pools established under subsection (c)(2)(A) for Valen19 cia peanuts produced in New Mexico) owned or con20 trolled by the Commodity Credit Corporation in that

21 area and sold for domestic edible use, in accordance

22 with regulations issued by the Secretary.

23 (4) USE OF MARKETING ASSESSMENTS.—The

24 Secretary shall use funds collected under subsection

25 (g) (except funds attributable to handlers) to offset
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1 further losses in area quota pools. The Secretary shall

2 transfer to the Treasury those funds collected under

3 subsection (g) and available for use under this sub4 section that the Secretary determines are not required

5 to cover losses in area quota pools.

6 (5) CROSS COMPLIANCE.—Further losses in area

7 quota pools, other than losses incurred as a result of

8 transfers from additional loan pools to quota loan

9 pools under section 358–1(b)(8) of the Agricultural

10 Adjustment Act of 1938 (7 U.S.C. 1358–1(b)(8)), shall

11 be offset by any gains or profits from quota pools in

12 other production areas (other than separate type pools

13 established under subsection (c)(2)(A) for Valencia

14 peanuts produced in New Mexico) in such manner as

15 the Secretary shall by regulation prescribe.

16 (6) OFFSET GENERALLY.—If losses in an area

17 quota pool have not been entirely offset under para18 graph (3), further losses shall be offset by any gains

19 or profits from additional peanuts (other than sepa20 rate type pools established under subsection (c)(2)(A)

21 for Valencia peanuts produced in New Mexico) owned

22 or controlled by the Commodity Credit Corporation

23 and sold for domestic edible use, in accordance with

24 regulations issued by the Secretary.
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1 (7) INCREASED ASSESSMENTS.—If use of the au2 thorities provided in the preceding paragraphs is not

3 sufficient to cover losses in an area quota pool, the

4 Secretary shall increase the marketing assessment es5 tablished under subsection (g) by such an amount as

6 the Secretary considers necessary to cover the losses.

7 The increased assessment shall apply only to quota

8 peanuts in the production area covered by the pool.

9 Amounts collected under subsection (g) as a result of

10 the increased assessment shall be retained by the Sec11 retary to cover losses in that pool.

12 (e) DISAPPROVAL OF QUOTAS.—Notwithstanding any

13 other provision of law, no loan for quota peanuts may be

14 made available by the Secretary for any crop of peanuts

15 with respect to which poundage quotas have been dis16 approved by producers, as provided for in section 358–1(d)

17 of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1358–

18 1(d)).

19 (f) QUALITY IMPROVEMENT.—

20 (1) IN GENERAL.—With respect to peanuts under

21 loan, the Secretary shall—

22 (A) promote the crushing of peanuts at a

23 greater risk of deterioration before peanuts of a

24 lesser risk of deterioration;
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1 (B) ensure that all Commodity Credit Cor2 poration inventories of peanuts sold for domestic

3 edible use must be shown to have been officially

4 inspected by licensed Department inspectors both

5 as farmer stock and shelled or cleaned in-shell

6 peanuts;

7 (C) continue to endeavor to operate the pea8 nut program so as to improve the quality of do9 mestic peanuts and ensure the coordination of

10 activities under the Peanut Administrative Com11 mittee established under Marketing Agreement

12 No. 146, regulating the quality of domestically

13 produced peanuts (under the Agricultural Ad14 justment Act (7 U.S.C. 601 et seq.), reenacted

15 with amendments by the Agricultural Marketing

16 Agreement Act of 1937); and

17 (D) ensure that any changes made in the

18 peanut program as a result of this subsection re19 quiring additional production or handling at the

20 farm level shall be reflected as an upward adjust21 ment in the Department loan schedule.

22 (2) EXPORTS AND OTHER PEANUTS.—The Sec23 retary shall require that all peanuts in the domestic

24 and export markets fully comply with all quality

25 standards under Marketing Agreement No. 146.
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1 (g) MARKETING ASSESSMENT.—

2 (1) IN GENERAL.—The Secretary shall provide

3 for a nonrefundable marketing assessment. The assess4 ment shall be made on a per pound basis in an

5 amount equal to 1.1 percent for each of the 1994 and

6 1995 crops, 1.15 percent for the 1996 crop, and 1.2

7 percent for each of the 1997 through 2002 crops, of the

8 national average quota or additional peanut loan rate

9 for the applicable crop.

10 (2) FIRST PURCHASERS.—

11 (A) IN GENERAL.—Except as provided

12 under paragraphs (3) and (4), the first pur13 chaser of peanuts shall—

14 (i) collect from the producer a market15 ing assessment equal to the quantity of pea16 nuts acquired multiplied by—

17 (I) in the case of each of the 1994

18 and 1995 crops, .55 percent of the ap19 plicable national average loan rate;

20 (II) in the case of the 1996 crop,

21 .6 percent of the applicable national

22 average loan rate; and

23 (III) in the case of each of the

24 1997 through 2002 crops, .65 percent
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1 of the applicable national average loan

2 rate;

3 (ii) pay, in addition to the amount

4 collected under clause (i), a marketing as5 sessment in an amount equal to the quan6 tity of peanuts acquired multiplied by .55

7 percent of the applicable national average

8 loan rate; and

9 (iii) remit the amounts required under

10 clauses (i) and (ii) to the Commodity Credit

11 Corporation in a manner specified by the

12 Secretary.

13 (B) DEFINITION OF FIRST PURCHASER.—In

14 this subsection, the term ‘‘first purchaser’’ means

15 a person acquiring peanuts from a producer ex16 cept that in the case of peanuts forfeited by a

17 producer to the Commodity Credit Corporation,

18 the term means the person acquiring the peanuts

19 from the Commodity Credit Corporation.

20 (3) OTHER PRIVATE MARKETINGS.—In the case

21 of a private marketing by a producer directly to a

22 consumer through a retail or wholesale outlet or in

23 the case of a marketing by the producer outside of the

24 continental United States, the producer shall be re25 sponsible for the full amount of the assessment and
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1 shall remit the assessment by such time as is specified

2 by the Secretary.

3 (4) LOAN PEANUTS.—In the case of peanuts that

4 are pledged as collateral for a loan made under this

section, 1 5 ⁄2 of the assessment shall be deducted from

6 the proceeds of the loan. The remainder of the assess7 ment shall be paid by the first purchaser of the pea8 nuts. For purposes of computing net gains on peanuts

9 under this section, the reduction in loan proceeds

10 shall be treated as having been paid to the producer.

11 (5) PENALTIES.—If any person fails to collect or

12 remit the reduction required by this subsection or

13 fails to comply with the requirements for record14 keeping or otherwise as are required by the Secretary

15 to carry out this subsection, the person shall be liable

16 to the Secretary for a civil penalty up to an amount

17 determined by multiplying—

18 (A) the quantity of peanuts involved in the

19 violation; by

20 (B) the national average quota peanut rate

21 for the applicable crop year.

22 (6) ENFORCEMENT.—The Secretary may enforce

23 this subsection in the courts of the United States.

24 (h) CROPS.—Subsections (a) through (f) shall be effec25 tive only for the 1996 through 2002 crops of peanuts.
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1 (i) MARKETING QUOTAS.—

2 (1) IN GENERAL.—Part VI of subtitle B of title

3 III of the Agricultural Adjustment Act of 1938 is

4 amended—

5 (A) in section 358–1 (7 U.S.C. 1358–1)—

6 (i) in the section heading, by striking

7 ‘‘1991 THROUGH 1997 CROPS OF’’;

8 (ii) in subsections (a)(1), (b)(1)(B),

9 (b)(2)(A), (b)(2)(C), and (b)(3)(A), by strik10 ing ‘‘of the 1991 through 1997 marketing

11 years’’ each place it appears and inserting

12 ‘‘marketing year’’;

13 (iii) in subsection (a)(3), by striking

14 ‘‘1990’’ and inserting ‘‘1990, for the 1991

15 through 1995 marketing years, and 1995,

16 for the 1996 through 2002 marketing

17 years’’;

18 (iv) in subsection (b)(1)(A)—

19 (I) by striking ‘‘each of the 1991

20 through 1997 marketing years’’ and

21 inserting ‘‘each marketing year’’; and

22 (II) in clause (i), by inserting be23 fore the semicolon the following: ‘‘, in

24 the case of the 1991 through 1995 mar25 keting years, and the 1995 marketing
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1 year, in the case of the 1996 through

2 2002 marketing years’’;

3 (v) in subsection (b)(1), by adding at

4 the end the following:

5 ‘‘(D) CERTAIN FARMS INELIGIBLE FOR

6 QUOTA.—Effective beginning with the 1997 mar7 keting year, the Secretary shall not establish a

8 farm poundage quota under subparagraph (A)

9 for a farm owned or controlled by—

10 ‘‘(i) a municipality, airport authority,

11 school, college, refuge, or other public entity

12 (other than a university used for research

13 purposes); or

14 ‘‘(ii) a person who is not a producer

15 and resides in another State.’’;

16 (vi) in subsection (b)(2), by adding at

17 the end the following:

18 ‘‘(E) TRANSFER OF QUOTA FROM INELI19 GIBLE FARMS.—Any farm poundage quota held

20 at the end of the 1996 marketing year by a farm

21 described in paragraph (1)(D) shall be allocated

22 to other farms in the same State on such basis

23 as the Secretary may by regulation prescribe.’’;

24 and
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1 (vii) in subsection (f), by striking

2 ‘‘1997’’ and inserting ‘‘2002’’;

3 (B) in section 358b (7 U.S.C. 1358b)—

4 (i) in the section heading, by striking

5 ‘‘1991 THROUGH 1995 CROPS OF’’; and

6 (ii) in subsection (c), by striking

7 ‘‘1995’’ and inserting ‘‘2002’’;

8 (C) in section 358c(d) (7 U.S.C. 1358c(d)),

9 by striking ‘‘1995’’ and inserting ‘‘2002’’; and

10 (D) in section 358e (7 U.S.C. 1359a)—

11 (i) in the section heading, by striking

12 ‘‘FOR 1991 THROUGH 1997 CROPS OF

13 PEANUTS’’; and

14 (ii) in subsection (i), by striking

15 ‘‘1997’’ and inserting ‘‘2002’’.

16 (2) ELIMINATION OF QUOTA FLOOR.—Section

17 358–1(a)(1) of the Act (7 U.S.C. 1358–1(a)(1)) is

18 amended by striking the second sentence.

19 (3) TEMPORARY QUOTA ALLOCATION.—Section

20 358–1 of the Act (7 U.S.C. 1358–1) is amended—

21 (A) in subsection (a)(1), by striking ‘‘do22 mestic edible, seed,’’ and inserting ‘‘domestic edi23 ble use’’;

24 (B) in subsection (b)(2)—
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1 (i) in subparagraph (A), by striking

2 ‘‘subparagraph (B) and subject to’’; and

3 (ii) by striking subparagraph (B) and

4 inserting the following:

5 ‘‘(B) TEMPORARY QUOTA ALLOCATION.—

6 ‘‘(i) ALLOCATION RELATED TO SEED

7 PEANUTS.—Temporary allocation of quota

8 pounds for the marketing year only in

9 which the crop is planted shall be made to

10 producers for each of the 1996 through 2002

11 marketing years as provided in this sub12 paragraph.

13 ‘‘(ii) QUANTITY.—The temporary quota

14 allocation shall be equal to the pounds of

15 seed peanuts planted on the farm, as may

16 be adjusted under regulations prescribed by

17 the Secretary.

18 ‘‘(iii) ADDITIONAL QUOTA.—The tem19 porary allocation of quota pounds under

20 this paragraph shall be in addition to the

21 farm poundage quota otherwise established

22 under this subsection and shall be credited,

23 for the applicable marketing year only, in

24 total to the producer of the peanuts on the
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1 farm in a manner prescribed by the Sec2 retary.

3 ‘‘(iv) EFFECT OF OTHER REQUIRE4 MENTS.—Nothing in this section alters or

5 changes the requirements regarding the use

6 of quota and additional peanuts established

7 by section 358e(b).’’; and

8 (C) in subsection (e)(3), strike ‘‘and seed

9 and use on a farm’’.

10 (4) UNDERMARKETINGS.—Part VI of subtitle B

11 of title III of the Act is amended—

12 (A) in section 358–1(b) (7 U.S.C. 1358–

13 1(b))—

14 (i) in paragraph (1)(B), by striking

15 ‘‘including—’’ and clauses (i) and (ii) and

16 inserting ‘‘including any increases resulting

17 from the allocation of quotas voluntarily re18 leased for 1 year under paragraph (7).’’;

19 (ii) in paragraph (3)(B), by striking

20 ‘‘include—’’ and clauses (i) and (ii) and

21 inserting ‘‘include any increase resulting

22 from the allocation of quotas voluntarily re23 leased for 1 year under paragraph (7).’’;

24 and
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1 (iii) by striking paragraphs (8) and

2 (9); and

3 (B) in section 358b(a) (7 U.S.C.

4 1358b(a))—

5 (i) in paragraph (1), by striking ‘‘(in6 cluding any applicable under marketings)’’

7 both places it appears;

8 (ii) in paragraph (1)(A), by striking

9 ‘‘of undermarketings and’’;

10 (iii) in paragraph (2), by striking

11 ‘‘(including any applicable under market12 ings)’’; and

13 (iv) in paragraph (3), by striking

14 ‘‘(including any applicable

15 undermarketings)’’.

16 (5) DISASTER TRANSFERS.—Section 358–1(b) of

17 the Act (7 U.S.C. 1358–1(b)), as amended by para18 graph (4)(A)(iii), is further amended by adding at

19 the end the following:

20 ‘‘(8) DISASTER TRANSFERS.—

21 ‘‘(A) IN GENERAL.—Except as provided in

22 subparagraph (B), additional peanuts produced

23 on a farm from which the quota poundage was

24 not harvested and marketed because of drought,

25 flood, or any other natural disaster, or any other
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1 condition beyond the control of the producer,

2 may be transferred to the quota loan pool for

3 pricing purposes on such basis as the Secretary

4 shall by regulation provide.

5 ‘‘(B) LIMITATION.—The poundage of pea6 nuts transferred under subparagraph (A) shall

7 not exceed the difference between—

8 ‘‘(i) the total quantity of peanuts meet9 ing quality requirements for domestic edible

10 use, as determined by the Secretary, mar11 keted from the farm; and

12 ‘‘(ii) the total farm poundage quota,

13 excluding quota pounds transferred to the

14 farm in the fall.

15 ‘‘(C) SUPPORT RATE.—Peanuts transferred

16 under this paragraph shall be supported at not

17 more than 70 percent of the quota support rate

18 for the marketing years in which the transfers

19 occur. The transfers for a farm shall not exceed

20 25 percent of the total farm quota pounds, ex21 cluding pounds transferred in the fall.’’.

22 SEC. 107. SUGAR PROGRAM.

23 (a) SUGARCANE.—The Secretary shall make loans

24 available to processors of domestically grown sugarcane at

25 a rate equal to 18 cents per pound for raw cane sugar.
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1 (b) SUGAR BEETS.—The Secretary shall make loans

2 available to processors of domestically grown sugar beets at

3 a rate equal to 22.9 cents per pound for refined beet sugar.

4 (c) TERM OF LOANS.—

5 (1) IN GENERAL.—Loans under this section dur6 ing any fiscal year shall be made available not earlier

7 than the beginning of the fiscal year and shall mature

8 at the earlier of—

9 (A) the end of 9 months; or

10 (B) the end of the fiscal year.

11 (2) SUPPLEMENTAL LOANS.—In the case of loans

12 made under this section in the last 3 months of a fis13 cal year, the processor may repledge the sugar as col14 lateral for a second loan in the subsequent fiscal year,

15 except that the second loan shall—

16 (A) be made at the loan rate in effect at the

17 time the second loan is made; and

18 (B) mature in 9 months less the quantity of

19 time that the first loan was in effect.

20 (d) LOAN TYPE; PROCESSOR ASSURANCES.—

21 (1) RECOURSE LOANS.—Subject to paragraph

22 (2), the Secretary shall carry out this section through

23 the use of recourse loans.

24 (2) NONRECOURSE LOANS.—During any fiscal

25 year in which the tariff rate quota for imports of
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1 sugar into the United States is established at, or is

2 increased to, a level in excess of 1,500,000 short tons

3 raw value, the Secretary shall carry out this section

4 by making available nonrecourse loans. Any recourse

5 loan previously made available by the Secretary

6 under this section during the fiscal year shall be

7 changed by the Secretary into a nonrecourse loan.

8 (3) PROCESSOR ASSURANCES.—If the Secretary

9 is required under paragraph (2) to make nonrecourse

10 loans available during a fiscal year or to change re11 course loans into nonrecourse loans, the Secretary

12 shall obtain from each processor that receives a loan

13 under this section such assurances as the Secretary

14 considers adequate to ensure that the processor will

15 provide payments to producers that are proportional

16 to the value of the loan received by the processor for

17 sugar beets and sugarcane delivered by producers

18 served by the processor. The Secretary may establish

19 appropriate minimum payments for purposes of this

20 paragraph.

21 (e) MARKETING ASSESSMENT.—

22 (1) SUGARCANE.—Effective for marketings of

23 raw cane sugar during the 1996 through 2003 fiscal

24 years, the first processor of sugarcane shall remit to
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1 the Commodity Credit Corporation a nonrefundable

2 marketing assessment in an amount equal to—

3 (A) in the case of marketings during fiscal

4 year 1996, 1.1 percent of the loan rate estab5 lished under subsection (a) per pound of raw

6 cane sugar, processed by the processor from do7 mestically produced sugarcane or sugarcane mo8 lasses, that has been marketed (including the

9 transfer or delivery of the sugar to a refinery for

10 further processing or marketing); and

11 (B) in the case of marketings during each

12 of fiscal years 1997 through 2003, 1.375 percent

13 of the loan rate established under subsection (a)

14 per pound of raw cane sugar, processed by the

15 processor from domestically produced sugarcane

16 or sugarcane molasses, that has been marketed

17 (including the transfer or delivery of the sugar

18 to a refinery for further processing or market19 ing).

20 (2) SUGAR BEETS.—Effective for marketings of

21 beet sugar during the 1996 through 2003 fiscal years,

22 the first processor of sugar beets shall remit to the

23 Commodity Credit Corporation a nonrefundable mar24 keting assessment in an amount equal to—
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1 (A) in the case of marketings during fiscal

2 year 1996, 1.1794 percent of the loan rate estab3 lished under subsection (a) per pound of beet

4 sugar, processed by the processor from domesti5 cally produced sugar beets or sugar beet molas6 ses, that has been marketed; and

7 (B) in the case of marketings during each

8 of fiscal years 1997 through 2003, 1.47425 per9 cent of the loan rate established under subsection

10 (a) per pound of beet sugar, processed by the

11 processor from domestically produced sugar beets

12 or sugar beet molasses, that has been marketed.

13 (3) COLLECTION.—

14 (A) TIMING.—A marketing assessment re15 quired under this subsection shall be collected on

16 a monthly basis and shall be remitted to the

17 Commodity Credit Corporation not later than 30

18 days after the end of each month. Any cane

19 sugar or beet sugar processed during a fiscal

20 year that has not been marketed by September

21 30 of the year shall be subject to assessment on

22 that date. The sugar shall not be subject to a sec23 ond assessment at the time that it is marketed.

24 (B) MANNER.—Subject to subparagraph

25 (A), marketing assessments shall be collected
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1 under this subsection in the manner prescribed

2 by the Secretary and shall be nonrefundable.

3 (4) PENALTIES.—If any person fails to remit the

4 assessment required by this subsection or fails to com5 ply with such requirements for recordkeeping or other6 wise as are required by the Secretary to carry out

7 this subsection, the person shall be liable to the Sec8 retary for a civil penalty up to an amount deter9 mined by multiplying—

10 (A) the quantity of cane sugar or beet sugar

11 involved in the violation; by

12 (B) the loan rate for the applicable crop of

13 sugarcane or sugar beets.

14 (5) ENFORCEMENT.—The Secretary may enforce

15 this subsection in a court of the United States.

16 (f) FORFEITURE PENALTY.—

17 (1) IN GENERAL.—A penalty shall be assessed on

18 the forfeiture of any sugar pledged as collateral for a

19 nonrecourse loan under this section.

20 (2) CANE SUGAR.—The penalty for cane sugar

21 shall be 1 cent per pound.

22 (3) BEET SUGAR.—The penalty for beet sugar

23 shall bear the same relation to the penalty for cane

24 sugar as the marketing assessment for sugar beets

25 bears to the marketing assessment for sugarcane.
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1 (4) EFFECT OF FORFEITURE.—Any payments

2 owed producers by a processor that forfeits of any

3 sugar pledged as collateral for a nonrecourse loan

4 shall be reduced in proportion to the loan forfeiture

5 penalty incurred by the processor.

6 (g) INFORMATION REPORTING.—

7 (1) DUTY OF PROCESSORS AND REFINERS TO RE8 PORT.—A sugarcane processor, cane sugar refiner,

9 and sugar beet processor shall furnish the Secretary,

10 on a monthly basis, such information as the Secretary

11 may require to administer sugar programs, including

12 the quantity of purchases of sugarcane, sugar beets,

13 and sugar, and production, importation, distribution,

14 and stock levels of sugar.

15 (2) PENALTY.—Any person willfully failing or

16 refusing to furnish the information, or furnishing

17 willfully any false information, shall be subject to a

18 civil penalty of not more than $10,000 for each such

19 violation.

20 (3) MONTHLY REPORTS.—Taking into consider21 ation the information received under paragraph (1),

22 the Secretary shall publish on a monthly basis com23 posite data on production, imports, distribution, and

24 stock levels of sugar.
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1 (h) CROPS.—This section shall be effective only for the

2 1996 through 2002 crops of sugar beets and sugarcane.

3 SEC. 108. ADMINISTRATION.

4 (a) COMMODITY CREDIT CORPORATION.—

5 (1) USE OF CORPORATION.—The Secretary shall

6 carry out this title through the Commodity Credit

7 Corporation.

8 (2) SALARIES AND EXPENSES.—No funds of the

9 Corporation shall be used for any salary or expense

10 of any officer or employee of the Department of Agri11 culture.

12 (b) DETERMINATIONS BY SECRETARY.—A determina13 tion made by the Secretary under this title or the Agricul14 tural Adjustment Act of 1938 (7 U.S.C. 1281 et seq.) shall

15 be final and conclusive.

16 (c) REGULATIONS.—The Secretary may issue such reg17 ulations as the Secretary determines necessary to carry out

18 this title.

19 SEC. 109. SUSPENSION AND REPEAL OF PERMANENT AU20 THORITIES.

21 (a) AGRICULTURAL ADJUSTMENT ACT OF 1938.—

22 (1) IN GENERAL.—The following provisions of

23 the Agricultural Adjustment Act of 1938 shall not be

24 applicable to the 1996 through 2002 crops:
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1 (A) Parts II through V of subtitle B of title

2 III (7 U.S.C. 1326–1351).

3 (B) Subsections (a) through (j) of section

4 358 (7 U.S.C. 1358).

5 (C) Subsections (a) through (h) of section

6 358a (7 U.S.C. 1358a).

7 (D) Subsections (a), (b), (d), and (e) of sec8 tion 358d (7 U.S.C. 1359).

9 (E) Part VII of subtitle B of title III (7

10 U.S.C. 1359aa–1359jj).

11 (F) In the case of peanuts, part I of subtitle

12 C of title III (7 U.S.C. 1361–1368).

13 (G) In the case of upland cotton, section

14 377 (7 U.S.C. 1377).

15 (H) Subtitle D of title III (7 U.S.C. 1379a–

16 1379j).

17 (I) Title IV (7 U.S.C. 1401–1407).

18 (2) REPORTS AND RECORDS.—Effective only for

19 the 1996 through 2002 crops of peanuts, the first sen20 tence of section 373(a) of the Agricultural Adjustment

21 Act of 1938 (7 U.S.C. 1373(a)) is amended by insert22 ing before ‘‘all brokers and dealers in peanuts’’ the

23 following: ‘‘all producers engaged in the production of

24 peanuts,’’.

25 (b) AGRICULTURAL ACT OF 1949.—
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1 (1) SUSPENSIONS.—The following provisions of

2 the Agricultural Act of 1949 shall not be applicable

3 to the 1996 through 2002 crops:

4 (A) Section 101 (7 U.S.C. 1441).

5 (B) Section 103(a) (7 U.S.C. 1444(a)).

6 (C) Section 105 (7 U.S.C. 1444b).

7 (D) Section 107 (7 U.S.C. 1445a).

8 (E) Section 110 (7 U.S.C. 1445e).

9 (F) Section 112 (7 U.S.C. 1445g).

10 (G) Section 115 (7 U.S.C. 1445k).

11 (H) Title III (7 U.S.C. 1447–1449).

12 (I) Title IV (7 U.S.C. 1421–1433d), other

13 than sections 404, 406, 412, 416, and 427 (7

14 U.S.C. 1424, 1426, 1429, 1431, and 1433f).

15 (J) Title V (7 U.S.C. 1461–1469).

16 (K) Title VI (7 U.S.C. 1471–1471j).

17 (2) REPEALS.—The following provisions of the

18 Agricultural Act of 1949 are repealed:

19 (A) Section 103B (7 U.S.C. 1444–2).

20 (B) Section 108B (7 U.S.C. 1445c–3).

21 (C) Section 113 (7 U.S.C. 1445h).

22 (D) Section 114(b) (7 U.S.C. 1445j(b)).

23 (E) Sections 205, 206, and 207 (7 U.S.C.

24 1446f, 1446g, and 1446h).

25 (F) Section 406 (7 U.S.C. 1426).
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1 (c) SUSPENSION OF CERTAIN QUOTA PROVISIONS.—

2 The joint resolution entitled ‘‘A joint resolution relating to

3 corn and wheat marketing quotas under the Agricultural

4 Adjustment Act of 1938, as amended’’, approved May 26,

5 1941 (7 U.S.C. 1330 and 1340), shall not be applicable to

6 the crops of wheat planted for harvest in the calendar years

7 1996 through 2002.

8 SEC. 110. EFFECT OF AMENDMENTS.

9 (a) EFFECT ON PRIOR CROPS.—Except as otherwise

10 specifically provided and notwithstanding any other provi11 sion of law, this title and the amendments made by this

12 title shall not affect the authority of the Secretary to carry

13 out a price support or production adjustment program for

14 any of the 1991 through 1995 crops of an agricultural com15 modity established under a provision of law in effect imme16 diately before the date of the enactment of this Act.

17 (b) LIABILITY.—A provision of this title or an amend18 ment made by this title shall not affect the liability of any

19 person under any provision of law as in effect before the

20 date of the enactment of this Act.
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1 TITLE II—AGRICULTURAL TRADE

2 Subtitle A—Amendments to Agricul3 tural Trade Development and

4 Assistance Act of 1954 and Relat5 ed Statutes

6 SEC. 201. FOOD AID TO DEVELOPING COUNTRIES.

7 (a) IN GENERAL.—Section 3 of the Agricultural Trade

8 Development and Assistance Act of 1954 (7 U.S.C. 1691a)

9 is amended to read as follows:

10 ‘‘SEC. 3. FOOD AID TO DEVELOPING COUNTRIES.

11 ‘‘(a) POLICY.—In light of the Uruguay Round Agree12 ment on Agriculture and the Ministerial Decision on Meas13 ures Concerning the Possible Negative Effects of the Reform

14 Program on Least-Developed and Net-Food Importing De15 veloping Countries, the United States reaffirms the commit16 ment of the United States to providing food aid to develop17 ing countries.

18 ‘‘(b) SENSE OF CONGRESS.—It is the sense of Congress

19 that—

20 ‘‘(1) the President should initiate consultations

21 with other donor nations to consider appropriate lev22 els of food aid commitments to meet the legitimate

23 needs of developing countries; and

24 ‘‘(2) the United States should increase its con25 tribution of bona fide food assistance to developing
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1 countries consistent with the Agreement on Agri2 culture.’’.

3 (b) CONFORMING AMENDMENT.—Section 411 of the

4 Uruguay Round Agreements Act (19 U.S.C. 3611) is

5 amended by striking subsection (e).

6 SEC. 202. TRADE AND DEVELOPMENT ASSISTANCE.

7 Section 101 of the Agricultural Trade Development

8 and Assistance Act of 1954 (7 U.S.C. 1701) is amended—

9 (1) by striking ‘‘developing countries’’ each place

10 it appears and inserting ‘‘developing countries and

11 private entities’’; and

12 (2) in subsection (b), by inserting ‘‘and entities’’

13 before the period at the end.

14 SEC. 203. AGREEMENTS REGARDING ELIGIBLE COUNTRIES

15 AND PRIVATE ENTITIES.

16 Section 102 of the Agricultural Trade Development

17 and Assistance Act of 1954 (7 U.S.C. 1702) is amended to

18 read as follows:

19 ‘‘SEC. 102. AGREEMENTS REGARDING ELIGIBLE COUNTRIES

20 AND PRIVATE ENTITIES.

21 ‘‘(a) PRIORITY.—In selecting agreements to be entered

22 into under this title, the Secretary shall give priority to

23 agreements providing for the export of agricultural com24 modities to developing countries that—
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1 ‘‘(1) have the demonstrated potential to become

2 commercial markets for competitively priced United

3 States agricultural commodities;

4 ‘‘(2) are undertaking measures for economic de5 velopment purposes to improve food security and ag6 ricultural development, alleviate poverty, and pro7 mote broad-based equitable and sustainable develop8 ment; and

9 ‘‘(3) demonstrate the greatest need for food.

10 ‘‘(b) PRIVATE ENTITIES.—An agreement entered into

11 under this title with a private entity shall require such se12 curity, or such other provisions as the Secretary determines

13 necessary, to provide reasonable and adequate assurance of

14 repayment of the financing extended to the private entity.

15 ‘‘(c) AGRICULTURAL MARKET DEVELOPMENT PLAN.—

16 ‘‘(1) DEFINITION OF AGRICULTURAL TRADE OR17 GANIZATION.—In this subsection, the term ‘agricul18 tural trade organization’ means a United States agri19 cultural trade organization that promotes the export

20 and sale of a United States agricultural commodity

21 and that does not stand to profit directly from the

22 specific sale of the commodity.

23 ‘‘(2) PLAN.—The Secretary shall consider a de24 veloping country for which an agricultural market de25 velopment plan has been approved under this sub-
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1 section to have the demonstrated potential to become

2 a commercial market for competitively priced United

3 States agricultural commodities for the purpose of

4 granting a priority under subsection (a).

5 ‘‘(3) REQUIREMENTS.—

6 ‘‘(A) IN GENERAL.—To be approved by the

7 Secretary, an agricultural market development

8 plan shall—

9 ‘‘(i) be submitted by a developing coun10 try or private entity, in conjunction with

11 an agricultural trade organization;

12 ‘‘(ii) describe a project or program for

13 the development and expansion of a United

14 States agricultural commodity market in a

15 developing country, and the economic devel16 opment of the country, using funds derived

17 from the sale of agricultural commodities

18 received under an agreement described in

19 section 101;

20 ‘‘(iii) provide for any matching funds

21 that are required by the Secretary for the

22 project or program;

23 ‘‘(iv) provide for a results-oriented

24 means of measuring the success of the

25 project or program; and
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1 ‘‘(v) provide for graduation to the use

2 of non-Federal funds to carry out the

3 project or program, consistent with require4 ments established by the Secretary.

5 ‘‘(B) AGRICULTURAL TRADE ORGANIZA6 TION.—The project or program shall be designed

7 and carried out by the agricultural trade organi8 zation.

9 ‘‘(C) ADDITIONAL REQUIREMENTS.—An ag10 ricultural market development plan shall contain

11 such additional requirements as are determined

12 necessary by the Secretary.

13 ‘‘(4) ADMINISTRATIVE COSTS.—

14 ‘‘(A) IN GENERAL.—The Secretary shall

15 make funds made available to carry out this title

16 available for the reimbursement of administra17 tive expenses incurred by agricultural trade or18 ganizations in developing, implementing, and

19 administering agricultural market development

20 plans, subject to such requirements and in such

21 amounts as the Secretary considers appropriate.

22 ‘‘(B) DURATION.—The funds shall be made

23 available to agricultural trade organizations for

24 the duration of the applicable agricultural mar25 ket development plan.
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1 ‘‘(C) TERMINATION.—The Secretary may

2 terminate assistance made available under this

3 subsection if the agricultural trade organization

4 is not carrying out the approved agricultural

5 market development plan.’’.

6 SEC. 204. TERMS AND CONDITIONS OF SALES.

7 Section 103 of the Agricultural Trade Development

8 and Assistance Act of 1954 (7 U.S.C. 1703) is amended—

9 (1) in subsection (a)(2)(A)—

10 (A) by striking ‘‘a recipient country to

11 make’’; and

12 (B) by striking ‘‘such country’’ and insert13 ing ‘‘the appropriate country’’;

14 (2) in subsection (c), by striking ‘‘less than 10

15 nor’’; and

16 (3) in subsection (d)—

17 (A) by striking ‘‘recipient country’’ and in18 serting ‘‘developing country or private entity’’;

19 and

20 (B) by striking ‘‘7’’ and inserting ‘‘5’’.

21 SEC. 205. USE OF LOCAL CURRENCY PAYMENT.

22 Section 104 of the Agricultural Trade Development

23 and Assistance Act of 1954 (7 U.S.C. 1704) is amended—
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1 (1) in subsection (a), by striking ‘‘recipient

2 country’’ and inserting ‘‘developing country or pri3 vate entity’’; and

4 (2) in subsection (c)—

5 (A) by striking ‘‘recipient country’’ each

6 place it appears and inserting ‘‘appropriate de7 veloping country’’; and

8 (B) in paragraph (3), by striking ‘‘recipient

9 countries’’ and inserting ‘‘appropriate develop10 ing countries’’.

11 SEC. 206. VALUE-ADDED FOODS.

12 Section 105 of the Agricultural Trade Development

13 and Assistance Act of 1954 (7 U.S.C. 1705) is repealed.

14 SEC. 207. ELIGIBLE ORGANIZATIONS.

15 (a) IN GENERAL.—Section 202 of the Agricultural

16 Trade Development and Assistance Act of 1954 (7 U.S.C.

17 1722) is amended—

18 (1) by striking subsection (b) and inserting the

19 following:

20 ‘‘(b) NONEMERGENCY ASSISTANCE.—

21 ‘‘(1) IN GENERAL.—The Administrator may pro22 vide agricultural commodities for nonemergency as23 sistance under this title through eligible organizations

24 (as described in subsection (d)) that have entered into
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1 an agreement with the Administrator to use the com2 modities in accordance with this title.

3 ‘‘(2) LIMITATION.—The Administrator may not

4 deny a request for funds submitted under this sub5 section because the program for which the funds are

6 requested—

7 ‘‘(A) would be carried out by the eligible or8 ganization in a foreign country in which the

9 Agency for International Development does not

10 have a mission, office, or other presence; or

11 ‘‘(B) is not part of a development plan for

12 the country prepared by the Agency.’’; and

13 (2) in subsection (e)—

14 (A) in the subsection heading, by striking

15 ‘‘PRIVATE VOLUNTARY ORGANIZATIONS AND CO16 OPERATIVES’’ and inserting ‘‘ELIGIBLE ORGANI17 ZATIONS’’;

18 (B) in paragraph (1)—

19 (i) by striking ‘‘$13,500,000’’ and in20 serting ‘‘$28,000,000’’; and

21 (ii) by striking ‘‘private voluntary or22 ganizations and cooperatives to assist such

23 organizations and cooperatives’’ and insert24 ing ‘‘eligible organizations described in sub25 section (d), to assist the organizations’’;
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1 (C) by striking paragraph (2) and inserting

2 the following:

3 ‘‘(2) REQUEST FOR FUNDS.—To receive funds

4 made available under paragraph (1), a private vol5 untary organization or cooperative shall submit a re6 quest for the funds that is subject to approval by the

7 Administrator.’’; and

8 (D) in paragraph (3), by striking ‘‘a pri9 vate voluntary organization or cooperative, the

10 Administrator may provide assistance to that or11 ganization or cooperative’’ and inserting ‘‘an eli12 gible organization, the Administrator may pro13 vide assistance to the eligible organization’’.

14 (b) CONFORMING AMENDMENTS.—Section 207 of the

15 Agricultural Trade Development and Assistance Act of 1954

16 (7 U.S.C. 1726a) is amended—

17 (1) in subsection (a), by striking ‘‘a private vol18 untary organization or cooperative’’ and inserting

19 ‘‘an eligible organization’’; and

20 (2) in subsection (b)—

21 (A) in paragraph (1), by striking ‘‘private

22 voluntary organizations and cooperatives’’ and

23 inserting ‘‘eligible organizations’’; and
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1 (B) in paragraph (2), by striking ‘‘organi2 zations, cooperatives,’’ and inserting ‘‘eligible or3 ganizations’’.

4 SEC. 208. GENERATION AND USE OF FOREIGN CURRENCIES.

5 Section 203 of the Agricultural Trade Development

6 and Assistance Act of 1954 (7 U.S.C. 1723) is amended—

7 (1) in subsection (a), by inserting ‘‘, or in a

8 country in the same region,’’ after ‘‘in the recipient

9 country’’;

10 (2) in subsection (b)—

11 (A) by inserting ‘‘or in countries in the

12 same region,’’ after ‘‘in recipient countries,’’;

13 and

14 (B) by striking ‘‘10 percent’’ and inserting

15 ‘‘15 percent’’;

16 (3) in subsection (c), by inserting ‘‘or in a coun17 try in the same region,’’ after ‘‘in the recipient coun18 try,’’; and

19 (4) in subsection (d)(2), by inserting ‘‘or within

20 a country in the same region’’ after ‘‘within the recip21 ient country’’.
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1 SEC. 209. GENERAL LEVELS OF ASSISTANCE UNDER PUBLIC

2 LAW 480.

3 Section 204(a) of the Agricultural Trade Development

4 and Assistance Act of 1954 (7 U.S.C. 1724(a)) is amend5 ed—

6 (1) in paragraph (1), by striking ‘‘amount that’’

7 and all that follows through the period at the end and

8 inserting ‘‘amount that for each of fiscal years 1996

9 through 2002 is not less than 2,025,000 metric tons.’’;

10 (2) in paragraph (2), by striking ‘‘amount that’’

11 and all that follows through the period at the end and

12 inserting ‘‘amount that for each of fiscal years 1996

13 through 2002 is not less than 1,550,000 metric tons.’’;

14 and

15 (3) in paragraph (3), by adding at the end the

16 following: ‘‘No waiver shall be made before the begin17 ning of the applicable fiscal year.’’.

18 SEC. 210. FOOD AID CONSULTATIVE GROUP.

19 Section 205 of the Agricultural Trade Development

20 and Assistance Act of 1954 (7 U.S.C. 1725) is amended—

21 (1) in subsection (a), by striking ‘‘private vol22 untary organizations, cooperatives and indigenous

23 non-governmental organizations’’ and inserting ‘‘eli24 gible organizations described in section 202(d)(1)’’;

25 (2) in subsection (b)—
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1 (A) in paragraph (2), by striking ‘‘for

2 International Affairs and Commodity Pro3 grams’’ and inserting ‘‘of Agriculture for Farm

4 and Foreign Agricultural Services’’;

5 (B) in paragraph (4), by striking ‘‘and’’ at

6 the end;

7 (C) in paragraph (5), by striking the period

8 at the end and inserting ‘‘; and’’; and

9 (D) by adding at the end the following:

10 ‘‘(6) representatives from agricultural producer

11 groups in the United States.’’;

12 (3) in the second sentence of subsection (d), by

13 inserting ‘‘(but at least twice per year)’’ after ‘‘when

14 appropriate’’; and

15 (4) in subsection (f), by striking ‘‘1995’’ and in16 serting ‘‘2002’’.

17 SEC. 211. SUPPORT OF NONGOVERNMENTAL ORGANIZA18 TIONS.

19 (a) IN GENERAL.—Section 306(b) of the Agricultural

20 Trade Development and Assistance Act of 1954 (7 U.S.C.

21 1727e(b)) is amended—

22 (1) in the subsection heading, by striking ‘‘IN23 DIGENOUS NON-GOVERNMENTAL’’ and inserting

24 ‘‘NONGOVERNMENTAL’’; and
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1 (2) by striking ‘‘utilization of indigenous’’ and

2 inserting ‘‘utilization of’’.

3 (b) CONFORMING AMENDMENT.—Section 402 of the

4 Agricultural Trade Development and Assistance Act of 1954

5 (7 U.S.C. 1732) is amended by striking paragraph (6) and

6 inserting the following:

7 ‘‘(6) NONGOVERNMENTAL ORGANIZATION.—The

8 term ‘nongovernmental organization’ means an orga9 nization that works at the local level to solve develop10 ment problems in a foreign country in which the or11 ganization is located, except that the term does not

12 include an organization that is primarily an agency

13 or instrumentality of the government of the foreign

14 country.’’.

15 SEC. 212. COMMODITY DETERMINATIONS.

16 Section 401 of the Agricultural Trade Development

17 and Assistance Act of 1954 (7 U.S.C. 1731) is amended—

18 (1) by striking subsections (a) through (d) and

19 inserting the following:

20 ‘‘(a) AVAILABILITY OF COMMODITIES.—No agricul21 tural commodity shall be available for disposition under

22 this Act if the Secretary determines that the disposition

23 would reduce the domestic supply of the commodity below

24 the supply needed to meet domestic requirements and pro25 vide adequate carryover (as determined by the Secretary),
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1 unless the Secretary determines that some part of the supply

2 should be used to carry out urgent humanitarian purposes

3 under this Act.’’;

4 (2) by redesignating subsections (e) and (f) as

5 subsections (b) and (c), respectively; and

6 (3) in subsection (c) (as so redesignated), by

7 striking ‘‘(e)(1)’’ and inserting ‘‘(b)(1)’’.

8 SEC. 213. GENERAL PROVISIONS.

9 Section 403 of the Agricultural Trade Development

10 and Assistance Act of 1954 (7 U.S.C. 1733) is amended—

11 (1) in subsection (b)—

12 (A) in the subsection heading, by striking

13 ‘‘CONSULTATIONS’’ and inserting ‘‘IMPACT ON

14 LOCAL FARMERS AND ECONOMY’’; and

15 (B) by striking ‘‘consult with’’ and all that

16 follows through ‘‘other donor organizations to’’;

17 (2) in subsection (c)—

18 (A) by striking ‘‘from countries’’; and

19 (B) by striking ‘‘for use’’ and inserting ‘‘or

20 use’’;

21 (3) in subsection (f)—

22 (A) by inserting ‘‘or private entities, as ap23 propriate,’’ after ‘‘from countries’’; and

24 (B) by inserting ‘‘or private entities’’ after

25 ‘‘such countries’’; and
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1 (4) in subsection (i)(2), by striking subpara2 graph (C).

3 SEC. 214. AGREEMENTS.

4 Section 404 of the Agricultural Trade Development

5 and Assistance Act of 1954 (7 U.S.C. 1734) is amended—

6 (1) in subsection (a), by inserting ‘‘with foreign

7 countries’’ after ‘‘Before entering into agreements’’;

8 (2) in subsection (b)(2)—

9 (A) by inserting ‘‘with foreign countries’’

10 after ‘‘with respect to agreements entered into’’;

11 and

12 (B) by inserting before the semicolon at the

13 end the following: ‘‘and broad-based economic

14 growth’’; and

15 (3) in subsection (c), by striking paragraph (1)

16 and inserting the following:

17 ‘‘(1) IN GENERAL.—Agreements to provide assist18 ance on a multi-year basis to recipient countries or

19 to eligible organizations—

20 ‘‘(A) may be made available under titles I

21 and III; and

22 ‘‘(B) shall be made available under title

23 II.’’.
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1 SEC. 215. USE OF COMMODITY CREDIT CORPORATION.

2 Section 406 of the Agricultural Trade Development

3 and Assistance Act of 1954 (7 U.S.C. 1736) is amended—

4 (1) in subsection (a), by striking ‘‘shall’’ and in5 serting ‘‘may’’; and

6 (2) in subsection (b)—

7 (A) by inserting ‘‘titles II and III of’’ after

8 ‘‘commodities made available under’’; and

9 (B) by striking paragraph (4) and inserting

10 the following:

11 ‘‘(4) the vessel freight charges from United States

12 ports or designated Canadian transshipment ports, as

13 determined by the Secretary, to designated ports of

14 entry abroad;’’.

15 SEC. 216. ADMINISTRATIVE PROVISIONS.

16 Section 407 of the Agricultural Trade Development

17 and Assistance Act of 1954 (7 U.S.C. 1736a) is amended—

18 (1) in subsection (a)—

19 (A) in paragraph(1), by inserting ‘‘or pri20 vate entity that enters into an agreement under

21 title I’’ after ‘‘importing country’’; and

22 (B) in paragraph (2), by adding at the end

23 the following: ‘‘Resulting contracts may contain

24 such terms and conditions as the Secretary deter25 mines are necessary and appropriate.’’;

26 (2) in subsection (c)—
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1 (A) in paragraph (1)(A), by inserting ‘‘im2 porter or’’ before ‘‘importing country’’; and

3 (B) in paragraph (2)(A), by inserting ‘‘im4 porter or’’ before ‘‘importing country’’;

5 (3) in subsection (d)—

6 (A) by striking paragraph (2) and inserting

7 the following:

8 ‘‘(2) FREIGHT PROCUREMENT.—Notwithstanding

9 the Federal Property and Administrative Services Act

10 of 1949 (40 U.S.C. 471 et seq.) or other similar provi11 sions of law relating to the making or performance of

12 Federal Government contracts, ocean transportation

13 under titles II and III may be procured on the basis

14 of such full and open competitive procedures. Result15 ing contracts may contain such terms and conditions,

16 as the Administrator determines are necessary and

17 appropriate.’’; and

18 (B) by striking paragraph (4);

19 (4) in subsection (g)(2)—

20 (A) in subparagraph (B), by striking ‘‘and’’

21 at the end;

22 (B) in subparagraph (C), by striking the

23 period at the end and inserting ‘‘; and’’; and

24 (C) by adding at the end the following:
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1 ‘‘(D) an assessment of the progress towards

2 achieving food security in each country receiving

3 food assistance from the United States Govern4 ment, with special emphasis on the nutritional

5 status of the poorest populations in each coun6 try.’’; and

7 (5) by striking subsection (h).

8 SEC. 217. EXPIRATION DATE.

9 Section 408 of the Agricultural Trade Development

10 and Assistance Act of 1954 (7 U.S.C. 1736b) is amended

11 by striking ‘‘1995’’ and inserting ‘‘2002’’.

12 SEC. 218. REGULATIONS.

13 Section 409 of the Agricultural Trade Development

14 and Assistance Act of 1954 (7 U.S.C. 1736c) is repealed.

15 SEC. 219. INDEPENDENT EVALUATION OF PROGRAMS.

16 Section 410 of the Agricultural Trade Development

17 and Assistance Act of 1954 (7 U.S.C. 1736d) is repealed.

18 SEC. 220. AUTHORIZATION OF APPROPRIATIONS.

19 Section 412 of the Agricultural Trade Development

20 and Assistance Act of 1954 (7 U.S.C. 1736f) is amended—

21 (1) by striking subsections (b) and (c) and in22 serting the following:

23 ‘‘(b) TRANSFER OF FUNDS.—Notwithstanding any

24 other provision of law, the President may direct that—
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1 ‘‘(1) up to 15 percent of the funds available for

2 any fiscal year for carrying out any title of this Act

3 be used to carry out any other title of this Act; and

4 ‘‘(2) any funds available for title III be used to

5 carry out title II.’’; and

6 (2) by redesignating subsections (d) and (e) as

7 subsections (c) and (d), respectively.

8 SEC. 221. COORDINATION OF FOREIGN ASSISTANCE PRO9 GRAMS.

10 Section 413 of the Agricultural Trade Development

11 and Assistance Act of 1954 (7 U.S.C. 1736g) is amended

12 by inserting ‘‘title III of’’ before ‘‘this Act’’ each place it

13 appears.

14 SEC. 222. MICRONUTRIENT FORTIFICATION PILOT PRO15 GRAM.

16 Title IV of the Agricultural Trade Development and

17 Assistance Act of 1954 (7 U.S.C. 1731 et seq.) is amended

18 by adding at the end the following:

19 ‘‘SEC. 415. MICRONUTRIENT FORTIFICATION PILOT PRO20 GRAM.

21 ‘‘(a) IN GENERAL.—Not later than September 30,

22 1997, the Secretary, in consultation with the Adminis23 trator, shall establish a micronutrient fortification pilot

24 program under this Act. The purposes of the program shall

25 be to—
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1 ‘‘(1) assist developing countries in correcting

2 micronutrient dietary deficiencies among segments of

3 the populations of the countries; and

4 ‘‘(2) encourage the development of technologies

5 for the fortification of whole grains and other com6 modities that are readily transferable to developing

7 countries.

8 ‘‘(b) SELECTION OF PARTICIPATING COUNTRIES.—

9 From among the countries eligible for assistance under this

10 Act, the Secretary may select not more than 5 developing

11 countries to participate in the pilot program.

12 ‘‘(c) FORTIFICATION.—Under the pilot program, whole

13 grains and other commodities made available to a develop14 ing country selected to participate in the pilot program

15 may be fortified with 1 or more micronutrients (including

16 vitamin A, iron, and iodine) with respect to which a sub17 stantial portion of the population in the country are defi18 cient. The commodity may be fortified in the United States

19 or in the developing country.

20 ‘‘(d) TERMINATION OF AUTHORITY.—The authority to

21 carry out the pilot program established under this section

22 shall terminate on September 30, 2002.’’.

23 SEC. 223. USE OF CERTAIN LOCAL CURRENCY.

24 Title IV of the Agricultural Trade Development and

25 Assistance Act of 1954 (7 U.S.C. 1731 et seq.) (as amended
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1 by section 222) is further amended by adding at the end

2 the following:

3 ‘‘SEC. 416. USE OF CERTAIN LOCAL CURRENCY.

4 ‘‘Local currency payments received by the United

5 States pursuant to agreements entered into under title I (as

6 in effect on November 27, 1990) may be utilized by the Sec7 retary in accordance with section 108 (as in effect on No8 vember 27, 1990).’’.

9 SEC. 224. LEVELS OF ASSISTANCE UNDER FARMER-TO10 FARMER PROGRAM.

11 Section 501 of the Agricultural Trade Development

12 and Assistance Act of 1954 (7 U.S.C. 1737) is amended—

13 (1) in subsection (a)—

14 (A) by redesignating paragraphs (4)

15 through (6) as paragraphs (5) through (7), re16 spectively; and

17 (B) by inserting after paragraph (3) the fol18 lowing:

19 ‘‘(4) assist the travel of farmers and other agri20 cultural professionals from developing countries, mid21 dle income countries, and emerging democracies to the

22 United States for educational purposes consistent

23 with the objectives of this section;’’; and

24 (2) in subsection (c), by striking ‘‘1991 through

25 1995’’ and inserting ‘‘1996 through 2002’’.
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1 SEC. 225. FOOD SECURITY COMMODITY RESERVE.

2 (a) IN GENERAL.—Title III of the Agricultural Act of

3 1980 (7 U.S.C. 1736f–1 et seq.) is amended to read as fol4 lows:

5 ‘‘TITLE III—FOOD SECURITY

6 COMMODITY RESERVE

7 ‘‘SEC. 301. SHORT TITLE.

8 ‘‘This title may be cited as the ‘Food Security Com9 modity Reserve Act of 1996’.

10 ‘‘SEC. 302. ESTABLISHMENT OF COMMODITY RESERVE.

11 ‘‘(a) IN GENERAL.—To provide for a reserve solely to

12 meet emergency humanitarian food needs in developing

13 countries, the Secretary of Agriculture (referred to in this

14 title as the ‘Secretary’) shall establish a reserve stock of

15 wheat, rice, corn, or sorghum, or any combination of the

16 commodities, totalling not more than 4,000,000 metric tons

17 for use as described in subsection (c).

18 ‘‘(b) COMMODITIES IN RESERVE.—

19 ‘‘(1) IN GENERAL.—The reserve established under

20 this section shall consist of—

21 ‘‘(A) wheat in the reserve established under

22 the Food Security Wheat Reserve Act of 1980 as

23 of the effective date of the Agricultural Reform

24 and Improvement Act of 1996;

25 ‘‘(B) wheat, rice, corn, and sorghum (re26 ferred to in this section as ‘eligible commodities’)
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1 acquired in accordance with paragraph (2) to re2 plenish eligible commodities released from the re3 serve, including wheat to replenish wheat re4 leased from the reserve established under the

5 Food Security Wheat Reserve Act of 1980 but not

6 replenished as of the effective date of the Agricul7 tural Reform and Improvement Act of 1996; and

8 ‘‘(C) such rice, corn, and sorghum as the

9 Secretary may, at such time and in such man10 ner as the Secretary determines appropriate, ac11 quire as a result of exchanging an equivalent

12 value of wheat in the reserve established under

13 this section.

14 ‘‘(2) REPLENISHMENT OF RESERVE.—

15 ‘‘(A) IN GENERAL.—Subject to subsection

16 (i), commodities of equivalent value to eligible

17 commodities in the reserve established under this

18 section may be acquired—

19 ‘‘(i) through purchases—

20 ‘‘(I) from producers; or

21 ‘‘(II) in the market, if the Sec22 retary determines that the purchases

23 will not unduly disrupt the market; or
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1 ‘‘(ii) by designation by the Secretary of

2 stocks of eligible commodities of the Com3 modity Credit Corporation.

4 ‘‘(B) FUNDS.—Any use of funds to acquire

5 eligible commodities through purchases from pro6 ducers or in the market to replenish the reserve

7 must be authorized in an appropriation Act.

8 ‘‘(c) RELEASE OF ELIGIBLE COMMODITIES.—

9 ‘‘(1) EMERGENCY FOOD ASSISTANCE.—Notwith10 standing any other law, eligible commodities des11 ignated or acquired for the reserve established under

12 this section may be released by the Secretary to pro13 vide, on a donation or sale basis, emergency food as14 sistance to developing countries at such time as the

15 domestic supply of the eligible commodities is so lim16 ited that quantities of the eligible commodities cannot

17 be made available for disposition under the Agricul18 tural Trade Development and Assistance Act of 1954

19 (7 U.S.C. 1691 et seq.) (other than disposition for ur20 gent humanitarian purposes under section 401 of the

21 Act (7 U.S.C. 1731)).

22 ‘‘(2) PROVISION OF URGENT HUMANITARIAN RE23 LIEF.—

24 ‘‘(A) IN GENERAL.—Notwithstanding para25 graph (1), eligible commodities may be released
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1 from the reserve established under this section for

2 any fiscal year, without regard to the availabil3 ity of domestic supply, for use under title II of

4 the Agricultural Trade Development Assistance

5 Act of 1954 (7 U.S.C. 1721 et seq.) in providing

6 urgent humanitarian relief in any developing

7 country suffering a major disaster (as deter8 mined by the Secretary) in accordance with this

9 paragraph.

10 ‘‘(B) EXCEPTIONAL NEED.—If the eligible

11 commodities needed for relief cannot be made

12 available for relief in a timely manner under the

13 normal means of obtaining eligible commodities

14 for food assistance because of circumstances of

15 unanticipated and exceptional need, up to

16 500,000 metric tons of eligible commodities may

17 be released under subparagraph (A).

18 ‘‘(C) FUNDS.—If the Secretary certifies that

19 the funds made available for a fiscal year to

20 carry out title II of the Agricultural Trade De21 velopment and Assistance Act of 1954 (7 U.S.C.

22 1721 et seq.) are not less than the funds made

23 available for the previous fiscal year, up to

24 1,000,000 metric tons of eligible commodities

25 may be released under subparagraph (A).
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1 ‘‘(D) WAIVER OF MINIMUM TONNAGE RE2 QUIREMENTS.—Nothing in this paragraph shall

3 require the exercise of the waiver under section

4 204(a)(3) of the Agricultural Trade Development

5 and Assistance Act of 1954 (7 U.S.C. 5624(a)(3))

6 as a prerequisite for the release of eligible com7 modities under this paragraph.

8 ‘‘(E) LIMITATION.—The quantity of eligible

9 commodities released under this paragraph may

10 not exceed 1,000,000 metric tons in any fiscal

11 year.

12 ‘‘(3) PROCESSING OF ELIGIBLE COMMODITIES.—

13 Eligible commodities that are released from the re14 serve established under this section may be processed

15 in the United States and shipped to a developing

16 country when conditions in the recipient country re17 quire processing.

18 ‘‘(4) EXCHANGE.—The Secretary may exchange

19 an eligible commodity for another United States com20 modity of equal value, including powdered milk,

21 pulses, and vegetable oil.

22 ‘‘(d) USE OF ELIGIBLE COMMODITIES.—Eligible com23 modities that are released from the reserve established under

24 this section for the purpose of subsection (c) shall be made

25 available under the Agricultural Trade Development and
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1 Assistance Act of 1954 (7 U.S.C. 1691 et seq.) to meet fam2 ine or other urgent or extraordinary relief needs, except that

3 section 401 of the Act (7 U.S.C. 1731), with respect to deter4 minations of availability, shall not be applicable to the re5 lease.

6 ‘‘(e) MANAGEMENT OF ELIGIBLE COMMODITIES.—The

7 Secretary shall provide—

8 ‘‘(1) for the management of eligible commodities

9 in the reserve established under this section as to loca10 tion and quality of eligible commodities needed to

11 meet emergency situations; and

12 ‘‘(2) for the periodic rotation or replacement of

13 stocks of eligible commodities in the reserve to avoid

14 spoilage and deterioration of the commodities.

15 ‘‘(f) TREATMENT OF RESERVE UNDER OTHER LAW.—

16 Eligible commodities in the reserve established under this

17 section shall not be—

18 ‘‘(1) considered a part of the total domestic sup19 ply (including carryover) for the purpose of sub20 section (c) or for the purpose of administering the Ag21 ricultural Trade Development and Assistance Act of

22 1954 (7 U.S.C. 1691 et seq.); and

23 ‘‘(2) subject to any quantitative limitation on

24 exports that may be imposed under section 7 of the
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1 Export Administration Act of 1979 (50 U.S.C. App.

2 2406).

3 ‘‘(g) USE OF COMMODITY CREDIT CORPORATION.—

4 ‘‘(1) IN GENERAL.—Subject to the limitations

5 provided in this section, the funds, facilities, and au6 thorities of the Commodity Credit Corporation shall

7 be used by the Secretary in carrying out this section,

8 except that any restriction applicable to the acquisi9 tion, storage, or disposition of eligible commodities

10 owned or controlled by the Commodity Credit Cor11 poration shall not apply.

12 ‘‘(2) REIMBURSEMENT.—

13 ‘‘(A) IN GENERAL.—The Commodity Credit

14 Corporation shall be reimbursed for the release of

15 eligible commodities from funds made available

16 to carry out the Agricultural Trade Development

17 and Assistance Act of 1954 (7 U.S.C. 1691 et

18 seq.).

19 ‘‘(B) BASIS FOR REIMBURSEMENT.—The re20 imbursement shall be made on the basis of the

21 lesser of—

22 ‘‘(i) the actual costs incurred by the

23 Commodity Credit Corporation with respect

24 to the eligible commodity; or
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1 ‘‘(ii) the export market price of the eli2 gible commodity (as determined by the Sec3 retary) as of the time the eligible commodity

4 is released from the reserve for the purpose.

5 ‘‘(C) SOURCE OF FUNDS.—The reimburse6 ment may be made from funds appropriated for

7 the purpose of reimbursement in subsequent fis8 cal years.

9 ‘‘(h) FINALITY OF DETERMINATION.—Any determina10 tion by the Secretary under this section shall be final.

11 ‘‘(i) TERMINATION OF AUTHORITY.—

12 ‘‘(1) IN GENERAL.—The authority to replenish

13 stocks of eligible commodities to maintain the reserve

14 established under this section shall terminate on Sep15 tember 30, 2002.

16 ‘‘(2) DISPOSAL OF ELIGIBLE COMMODITIES.—El17 igible commodities remaining in the reserve after Sep18 tember 30, 2002, shall be disposed of by release for use

19 in providing for emergency humanitarian food needs

20 in developing countries as provided in this section.’’.

21 (b) CONFORMING AMENDMENT.—Section 208(d) of the

22 Agriculture Trade Suspension Adjustment Act of 1980 (7

23 U.S.C. 4001(d)) is amended by striking paragraph (2) and

24 inserting the following:
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1 ‘‘(2) APPLICABILITY OF CERTAIN PROVISIONS.—

2 Subsections (c), (d), (e), (f), and (g)(2) of section 302

3 of the Food Security Commodity Reserve Act of 1996

4 shall apply to commodities in any reserve established

5 under paragraph (1), except that the references to ‘eli6 gible commodities’ in the subsections shall be deemed

7 to be references to ‘agricultural commodities’.’’.

8 SEC. 226. PROTEIN BYPRODUCTS DERIVED FROM ALCOHOL

9 FUEL PRODUCTION.

10 Section 1208 of the Agriculture and Food Act of 1981

11 (7 U.S.C. 1736n) is repealed.

12 SEC. 227. FOOD FOR PROGRESS PROGRAM.

13 The Food for Progress Act of 1985 (7 U.S.C. 1736o)

14 is amended—

15 (1) in subsection (b)—

16 (A) in paragraph (1)—

17 (i) by striking ‘‘(b)(1)’’ and inserting

18 ‘‘(b)’’; and

19 (ii) in the first sentence, by inserting

20 ‘‘intergovernmental organizations’’ after

21 ‘‘cooperatives’’; and

22 (B) by striking paragraph (2);

23 (2) in subsection (e)(4), by striking ‘‘203’’ and

24 inserting ‘‘406’’;

25 (3) in subsection (f)—
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1 (A) in paragraph (1), by striking ‘‘in the

2 case of the independent states of the former So3 viet Union,’’;

4 (B) by striking paragraph (2);

5 (C) in paragraph (4), by inserting ‘‘in each

6 of fiscal years 1996 through 2002’’ after ‘‘may be

7 used’’; and

8 (D) by redesignating paragraphs (3)

9 through (5) as paragraphs (2) through (4), re10 spectively;

11 (4) in subsection (g), by striking ‘‘1995’’ and in12 serting ‘‘2002’’;

13 (5) in subsection (j), by striking ‘‘shall’’ and in14 serting ‘‘may’’;

15 (6) in subsection (k), by striking ‘‘1995’’ and in16 serting ‘‘2002’’;

17 (7) in subsection (l)(1)—

18 (A) by striking ‘‘1991 through 1995’’ and

19 inserting ‘‘1996 through 2002’’; and

20 (B) by inserting ‘‘, and to provide technical

21 assistance for monetization programs,’’ after

22 ‘‘monitoring of food assistance programs’’; and

23 (8) in subsection (m)—

24 (A) by striking ‘‘with respect to the inde25 pendent states of the former Soviet Union’’;
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1 (B) by striking ‘‘private voluntary organi2 zations and cooperatives’’ each place it appears

3 and inserting ‘‘agricultural trade organizations,

4 intergovernmental organizations, private vol5 untary organizations, and cooperatives’’; and

6 (C) in paragraph (2), by striking ‘‘in the

7 independent states’’.

8 SEC. 228. USE OF FOREIGN CURRENCY PROCEEDS FROM EX9 PORT SALES FINANCING.

10 Section 402 of the Mutual Security Act of 1954 (22

11 U.S.C. 1922) is repealed.

12 SEC. 229. STIMULATION OF FOREIGN PRODUCTION.

13 Section 7 of the Act of December 30, 1947 (61 Stat.

14 947, chapter 526; 50 U.S.C. App. 1917) is repealed.

15 Subtitle B—Amendments to

16 Agricultural Trade Act of 1978

17 SEC. 241. AGRICULTURAL EXPORT PROMOTION STRATEGY.

18 (a) IN GENERAL.—Section 103 of the Agricultural

19 Trade Act of 1978 (7 U.S.C. 5603) is amended to read as

20 follows:

21 ‘‘SEC. 103. AGRICULTURAL EXPORT PROMOTION STRATEGY.

22 ‘‘(a) IN GENERAL.—The Secretary shall develop a

23 strategy for implementing Federal agricultural export pro24 motion programs that takes into account the new market
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1 opportunities for agricultural products, including opportu2 nities that result from—

3 ‘‘(1) the North American Free Trade Agreement

4 and the Uruguay Round Agreements;

5 ‘‘(2) any accession to membership in the World

6 Trade Organization;

7 ‘‘(3) the continued economic growth in the Pa8 cific Rim; and

9 ‘‘(4) other developments.

10 ‘‘(b) PURPOSE OF STRATEGY.—The strategy developed

11 under subsection (a) shall encourage the maintenance, de12 velopment, and expansion of export markets for United

13 States agricultural commodities and related products, in14 cluding high-value and value-added products.

15 ‘‘(c) GOALS OF STRATEGY.—The strategy developed

16 under subsection (a) shall have the following goals:

17 ‘‘(1) By September 30, 2002, increasing the

18 value of annual United States agricultural exports to

19 $60,000,000,000.

20 ‘‘(2) By September 30, 2002, increasing the

21 United States share of world export trade in agricul22 tural products significantly above the average United

23 States share from 1993 through 1995.
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1 ‘‘(3) By September 30, 2002, increasing the

2 United States share of world trade in high-value agri3 cultural products to 20 percent.

4 ‘‘(4) Ensuring that the value of United States

5 exports of agricultural products increases at a faster

6 rate than the rate of increase in the value of overall

7 world export trade in agricultural products.

8 ‘‘(5) Ensuring that the value of United States

9 exports of high-value agricultural products increases

10 at a faster rate than the rate of increase in overall

11 world export trade in high-value agricultural prod12 ucts.

13 ‘‘(6) Ensuring to the extent practicable that—

14 ‘‘(A) substantially all obligations under15 taken in the Uruguay Round Agreement on Ag16 riculture that provide significantly increased ac17 cess for United States agricultural commodities

18 are implemented to the extent required by the

19 Uruguay Round Agreements; or

20 ‘‘(B) applicable United States trade laws

21 are used to secure United States rights under the

22 Uruguay Round Agreement on Agriculture.

23 ‘‘(d) PRIORITY MARKETS.—
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1 ‘‘(1) IDENTIFICATION OF MARKETS.—In develop2 ing the strategy required under subsection (a), the

3 Secretary shall identify as priority markets—

4 ‘‘(A) those markets in which imports of ag5 ricultural products show the greatest potential

6 for increase by September 30, 2002; and

7 ‘‘(B) those markets in which, with the as8 sistance of Federal export promotion programs,

9 exports of United States agricultural products

10 show the greatest potential for increase by Sep11 tember 30, 2002.

12 ‘‘(2) IDENTIFICATION OF SUPPORTING OF13 FICES.—The President shall identify annually in the

14 budget of the United States Government submitted

15 under section 1105 of title 31, United States Code,

16 each overseas office of the Foreign Agricultural Serv17 ice that provides assistance to United States exporters

18 in each of the priority markets identified under para19 graph (1).

20 ‘‘(e) REPORT.—Not later than December 31, 2001, the

21 Secretary shall prepare and submit a report to Congress

22 assessing progress in meeting the goals established by sub23 section (c).

24 ‘‘(f) FAILURE TO MEET GOALS.—Notwithstanding

25 any other law, if the Secretary determines that more than
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1 2 of the goals established by subsection (c) are not met by

2 September 30, 2002, the Secretary may not carry out agri3 cultural trade programs under the Agricultural Trade Act

4 of 1978 (7 U.S.C. 5601 et seq.) as of that date.

5 ‘‘(g) NO PRIVATE RIGHT OF ACTION.—This section

6 shall not create any private right of action.’’.

7 (b) CONTINUATION OF FUNDING.—

8 (1) IN GENERAL.—If the Secretary of Agriculture

9 makes a determination under section 103(f) of the Ag10 ricultural Trade Act of 1978 (as amended by sub11 section (a)), the Secretary shall utilize funds of the

12 Commodity Credit Corporation to promote United

13 States agricultural exports in a manner consistent

14 with the Commodity Credit Corporation Charter Act

15 (15 U.S.C. 714 et seq.) and obligations pursuant to

16 the Uruguay Round Agreements.

17 (2) FUNDING.—The amount of Commodity Cred18 it Corporation funds used to carry out paragraph (1)

19 during a fiscal year shall not exceed the total outlays

20 for agricultural trade programs under the Agricul21 tural Trade Act of 1978 (7 U.S.C. 5601 et seq.) dur22 ing fiscal year 2002.

23 (c) ELIMINATION OF REPORT.—

24 (1) IN GENERAL.—Section 601 of the Agricul25 tural Trade Act of 1978 (7 U.S.C. 5711) is repealed.
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1 (2) CONFORMING AMENDMENT.—The last sen2 tence of section 603 of the Agricultural Trade Act of

3 1978 (7 U.S.C. 5713) is amended by striking ‘‘, in a

4 consolidated report,’’ and all that follows through

5 ‘‘section 601’’ and inserting ‘‘or in a consolidated re6 port’’.

7 SEC. 242. EXPORT CREDITS.

8 (a) EXPORT CREDIT GUARANTEE PROGRAM.—Section

9 202 of the Agricultural Trade Act of 1978 (7 U.S.C. 5622)

10 is amended—

11 (1) in subsection (a)—

12 (A) by striking ‘‘GUARANTEES.—The’’ and

13 inserting the following: ‘‘GUARANTEES.—

14 ‘‘(1) IN GENERAL.—The’’; and

15 (B) by adding at the end the following:

16 ‘‘(2) SUPPLIER CREDITS.—In carrying out this

17 section, the Commodity Credit Corporation may issue

18 guarantees for the repayment of credit made available

19 for a period of not more than 180 days by a United

20 States exporter to a buyer in a foreign country.’’;

21 (2) in subsection (f)—

22 (A) by striking ‘‘(f) RESTRICTIONS.—The’’

23 and inserting the following:

24 ‘‘(f) RESTRICTIONS.—

25 ‘‘(1) IN GENERAL.—The’’; and
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1 (B) by adding at the end the following:

2 ‘‘(2) CRITERIA FOR DETERMINATION.—In mak3 ing the determination required under paragraph (1)

4 with respect to credit guarantees under subsection (b)

5 for a country, the Secretary may consider, in addi6 tion to financial, macroeconomic, and monetary indi7 cators—

8 ‘‘(A) whether an International Monetary

9 Fund standby agreement, Paris Club reschedul10 ing plan, or other economic restructuring plan is

11 in place with respect to the country;

12 ‘‘(B) the convertibility of the currency of the

13 country;

14 ‘‘(C) whether the country provides adequate

15 legal protection for foreign investments;

16 ‘‘(D) whether the country has viable finan17 cial markets;

18 ‘‘(E) whether the country provides adequate

19 legal protection for the private property rights of

20 citizens of the country; and

21 ‘‘(F) any other factors that are relevant to

22 the ability of the country to service the debt of

23 the country.’’;

24 (3) by striking subsection (h) and inserting the

25 following:
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1 ‘‘(h) UNITED STATES AGRICULTURAL COMPONENTS.—

2 The Commodity Credit Corporation shall finance or guar3 antee under this section only United States agricultural

4 commodities.’’;

5 (4) in subsection (i)—

6 (A) by striking ‘‘INSTITUTIONS.—A finan7 cial’’ and inserting the following: ‘‘INSTITU8 TIONS.—

9 ‘‘(1) IN GENERAL.—A financial’’;

10 (B) by striking paragraph (1);

11 (C) by striking ‘‘(2) is’’ and inserting the

12 following:

13 ‘‘(A) is’’;

14 (D) by striking ‘‘(3) is’’ and inserting the

15 following:

16 ‘‘(B) is’’; and

17 (E) by adding at the end the following:

18 ‘‘(2) THIRD COUNTRY BANKS.—The Commodity

19 Credit Corporation may guarantee under subsections

20 (a) and (b) the repayment of credit made available to

21 finance an export sale irrespective of whether the obli22 gor is located in the country to which the export sale

23 is destined.’’; and

24 (5) by striking subsection (k) and inserting the

25 following:
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1 ‘‘(k) PROCESSED AND HIGH-VALUE PRODUCTS.—

2 ‘‘(1) IN GENERAL.—In issuing export credit

3 guarantees under this section, the Commodity Credit

4 Corporation shall, subject to paragraph (2), ensure

5 that not less than 25 percent for each of fiscal years

6 1996 and 1997, 30 percent for each of fiscal years

7 1998 and 1999, and 35 percent for each of fiscal

8 years 2000, 2001, and 2002, of the total amount of

9 credit guarantees issued for a fiscal year is issued to

10 promote the export of processed or high-value agricul11 tural products and that the balance is issued to pro12 mote the export of bulk or raw agricultural commod13 ities.

14 ‘‘(2) LIMITATION.—The percentage requirement

15 of paragraph (1) shall apply for a fiscal year to the

16 extent that a reduction in the total amount of credit

17 guarantees issued for the fiscal year is not required

18 to meet the percentage requirement.’’.

19 (b) FUNDING LEVELS.—Section 211(b) of the Agricul20 tural Trade Act of 1978 (7 U.S.C. 5641(b)) is amended—

21 (1) by striking paragraph (2);

22 (2) by redesignating subparagraph (B) of para23 graph (1) as paragraph (2) and indenting the margin

24 of paragraph (2) (as so redesignated) so as to align

25 with the margin of paragraph (1); and
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1 (3) by striking paragraph (1) and inserting the

2 following:

3 ‘‘(1) EXPORT CREDIT GUARANTEES.—The Com4 modity Credit Corporation shall make available for

5 each of fiscal years 1996 through 2002 not less than

6 $5,500,000,000 in credit guarantees under subsections

7 (a) and (b) of section 202.’’.

8 (c) DEFINITIONS.—Section 102(7) of the Agricultural

9 Trade Act of 1978 (7 U.S.C. 5602(7)) is amended by strik10 ing subparagraphs (A) and (B) and inserting the following:

11 ‘‘(A) an agricultural commodity or product

12 entirely produced in the United States; or

13 ‘‘(B) a product of an agricultural commod14 ity—

15 ‘‘(i) 90 percent or more of which by

16 weight, excluding packaging and water, is

17 entirely produced in the United States; and

18 ‘‘(ii) that the Secretary determines to

19 be a high value agricultural product.’’.

20 (d) REGULATIONS.—Not later than 180 days after the

21 effective date of this title, the Secretary of Agriculture shall

22 issue regulations to carry out the amendments made by this

23 section.
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1 SEC. 243. MARKET PROMOTION PROGRAM.

2 Effective October 1, 1995, section 211(c)(1) of the Agri3 cultural Trade Act of 1978 (7 U.S.C. 5641(c)(1)) is amend4 ed—

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 $70,000,000 for

9 each of fiscal years 1996 through 2002,’’:

10 Provided, That funds made available under this Act to

11 carry out the non-generic activities of the market promotion

12 program established under section 203 of the Agricultural

13 Trade Act of 1978 (7 U.S.C. 5623) may be used to provide

14 cost-share assistance only to organizations that are non-for15 eign entities and are recognized as small business concerns

16 under section 3(a) of the Small Business Act (15 U.S.C.

17 632(a)) or to the associations described in the first section

18 of the Act entitled ‘‘An Act to authorize association of pro19 ducers of agricultural products’’, approved February 22,

20 1922 (7 U.S.C. 291): Provided further, that such funds may

21 not be used to provide cost-share assistance to a foreign eli22 gible trade organization: Provided further, That none of the

23 funds made available under this Act may be used to carry

24 out the market promotion program established under sec25 tion 203 of the Agricultural Trade Act of 1978 (7 U.S.C.
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1 5623) if the aggregate amount of funds and value of com2 modities under the program exceeds $70,000,000.

3 SEC. 244. EXPORT ENHANCEMENT PROGRAM.

4 Effective October 1, 1995, section 301(e)(1) of the Agri5 cultural Trade Act of 1978 (7 U.S.C. 5651(e)(1)) is amend6 ed to read as follows:

7 ‘‘(1) IN GENERAL.—The Commodity Credit Cor8 poration shall make available to carry out the pro9 gram established under this section not more than—

10 ‘‘(A) $350,000,000 for fiscal year 1996;

11 ‘‘(B) $350,000,000 for fiscal year 1997;

12 ‘‘(C) $500,000,000 for fiscal year 1998;

13 ‘‘(D) $550,000,000 for fiscal year 1999;

14 ‘‘(E) $579,000,000 for fiscal year 2000;

15 ‘‘(F) $478,000,000 for fiscal year 2001; and

16 ‘‘(G) $478,000,000 for fiscal year 2002.’’.

17 SEC. 245. ARRIVAL CERTIFICATION.

18 Section 401 of the Agricultural Trade Act of 1978 (7

19 U.S.C. 5662(a)) is amended by striking subsection (a) and

20 inserting the following:

21 ‘‘(a) ARRIVAL CERTIFICATION.—With respect to a

22 commodity provided, or for which financing or a credit

23 guarantee or other assistance is made available, under a

24 program authorized in section 201, 202, or 301, the Com25 modity Credit Corporation shall require the exporter of the
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1 commodity to maintain records of an official or customary

2 commercial nature or other documents as the Secretary may

3 require, and shall allow representatives of the Commodity

4 Credit Corporation access to the records or documents as

5 needed, to verify the arrival of the commodity in the coun6 try that was the intended destination of the commodity.’’.

7 SEC. 246. COMPLIANCE.

8 Section 402(a) of the Agricultural Trade Act of 1978

9 (7 U.S.C. 5662(a)) is amended—

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

11 (2) by redesignating paragraph (3) as para12 graph (2).

13 SEC. 247. REGULATIONS.

14 Section 404 of the Agricultural Trade Act of 1978 (7

15 U.S.C. 5664) is repealed.

16 SEC. 248. TRADE COMPENSATION AND ASSISTANCE PRO17 GRAMS.

18 Title IV of the Agricultural Trade Act of 1978 (7

19 U.S.C. 5661 et seq.) is amended by adding at the end the

20 following:

21 ‘‘SEC. 417. TRADE COMPENSATION AND ASSISTANCE PRO22 GRAMS.

23 ‘‘(a) IN GENERAL.—Notwithstanding any other law,

24 if, after the effective date of this section, the President or

25 any other member of the Executive branch causes exports
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1 from the United States to any country to be unilaterally

2 suspended for reasons of national security or foreign policy,

3 and if within 180 days after the date on which the suspen4 sion is imposed on United States exports no other country

5 agrees to participate in the suspension, the Secretary shall

6 carry out a trade compensation and assistance program in

7 accordance with this section (referred to in this section as

8 a ‘program’).

9 ‘‘(b) PROVISION OF FUNDS.—Under a program, the

10 Secretary shall make available for each fiscal year funds

11 of the Commodity Credit Corporation, in an amount cal12 culated under subsection (c), to promote agricultural ex13 ports or provide agricultural commodities to developing

14 countries, under any authorities available to the Secretary.

15 ‘‘(c) DETERMINATION OF AMOUNT OF FUNDS.—For

16 each fiscal year of a program, the amount of funds made

17 available under subsection (b) shall be equal to 90 percent

18 of the average annual value of United States agricultural

19 exports to the country with respect to which exports are sus20 pended during the most recent 3 years prior to the suspen21 sion for which data are available.

22 ‘‘(d) DURATION OF PROGRAM.—

23 ‘‘(1) IN GENERAL.—For each suspension of ex24 ports for which a program is implemented under this

25 section, funds shall be made available under sub-
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1 section (b) for each fiscal year or part of a fiscal year

2 for which the suspension is in effect, but not to exceed

3 2 fiscal years.

4 ‘‘(2) PARTIAL-YEAR EMBARGOES.—Regardless of

5 whether an embargo is in effect for only part of a fis6 cal year, the full amount of funds as calculated under

7 subsection (c) shall be made available under a pro8 gram for the fiscal year. If the Secretary determines

9 that making the required amount of funds available

10 in a partial fiscal year is impracticable, the Sec11 retary may make all or part of the funds required to

12 be made available in the partial fiscal year available

13 in the following fiscal year (in addition to any funds

14 otherwise required under a program to be made avail15 able in the following fiscal year).’’.

16 SEC. 249. FOREIGN AGRICULTURAL SERVICE.

17 Section 503 of the Agricultural Trade Act of 1978 (7

18 U.S.C. 5693) is amended to read as follows:

19 ‘‘SEC. 503. ESTABLISHMENT OF THE FOREIGN AGRICUL20 TURAL SERVICE.

21 ‘‘The Service shall assist the Secretary in carrying out

22 the agricultural trade policy and international cooperation

23 policy of the United States by—

24 ‘‘(1) acquiring information pertaining to agri25 cultural trade;
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1 ‘‘(2) carrying out market promotion and devel2 opment activities;

3 ‘‘(3) providing agricultural technical assistance

4 and training; and

5 ‘‘(4) carrying out the programs authorized under

6 this Act, the Agricultural Trade Development and As7 sistance Act of 1954 (7 U.S.C. 1691 et seq.), and other

8 Acts.’’.

9 SEC. 250. REPORTS.

10 The first sentence of section 603 of the Agricultural

11 Trade Act of 1978 (7 U.S.C. 5713) is amended by striking

12 ‘‘The’’ and inserting ‘‘Subject to section 217 of the Depart13 ment of Agriculture Reorganization Act of 1994 (7 U.S.C.

14 6917), the’’.

15 Subtitle C—Miscellaneous

16 SEC. 251. REPORTING REQUIREMENTS RELATING TO TO17 BACCO.

18 Section 214 of the Tobacco Adjustment Act of 1983 (7

19 U.S.C. 509) is repealed.

20 SEC. 252. TRIGGERED EXPORT ENHANCEMENT.

21 (a) READJUSTMENT OF SUPPORT LEVELS.—Section

22 1302 of the Omnibus Budget Reconciliation Act of 1990

23 (Public Law 101–508; 7 U.S.C. 1421 note) is repealed.

24 (b) TRIGGERED MARKETING LOANS AND EXPORT EN25 HANCEMENT.—Section 4301 of the Omnibus Trade and
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1 Competitiveness Act of 1988 (Public Law 100–418; 7 U.S.C.

2 1446 note) is repealed.

3 (c) EFFECTIVE DATE.—The amendments made by this

4 section shall be effective beginning with the 1996 crops of

5 wheat, feed grains, upland cotton, and rice.

6 SEC. 253. DISPOSITION OF COMMODITIES TO PREVENT

7 WASTE.

8 Section 416 of the Agricultural Act of 1949 (7 U.S.C.

9 1431) is amended—

10 (1) in subsection (b)—

11 (A) in paragraph (1), by inserting after the

12 first sentence the following: ‘‘The Secretary may

13 use funds of the Commodity Credit Corporation

14 to cover administrative expenses of the pro15 grams.’’;

16 (B) in paragraph (7)(D)(iv), by striking

17 ‘‘one year of acquisition’’ and all that follows

18 and inserting the following: ‘‘a reasonable length

19 of time, as determined by the Secretary, except

20 that the Secretary may permit the use of pro21 ceeds in a country other than the country of ori22 gin—

23 ‘‘(I) as necessary to expedite the transpor24 tation of commodities and products furnished

25 under this subsection; or
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1 ‘‘(II) if the proceeds are generated in a cur2 rency generally accepted in the other country.’’;

3 (C) in paragraph (8), by striking subpara4 graph (C); and

5 (D) by striking paragraphs (10), (11), and

6 (12); and

7 (2) by striking subsection (c).

8 SEC. 254. DIRECT SALES OF DAIRY PRODUCTS.

9 Section 106 of the Agriculture and Food Act of 1981

10 (7 U.S.C. 1446c-1) is repealed.

11 SEC. 255. EXPORT SALES OF DAIRY PRODUCTS.

12 Section 1163 of the Food Security Act of 1985 (Public

13 Law 99–198; 7 U.S.C. 1731 note) is repealed.

14 SEC. 256. DEBT-FOR-HEALTH-AND-PROTECTION SWAP.

15 (a) IN GENERAL.—Section 1517 of the Food, Agri16 culture, Conservation, and Trade Act of 1990 (7 U.S.C.

17 1706) is repealed.

18 (b) CONFORMING AMENDMENT.—Subsection (e)(3) of

19 the Food for Progress Act of 1985 (7 U.S.C. 1736o(e)(3))

20 is amended by striking ‘‘section 106’’ and inserting ‘‘section

21 103’’.

22 SEC. 257. POLICY ON EXPANSION OF INTERNATIONAL MAR23 KETS.

24 Section 1207 of the Agriculture and Food Act of 1981

25 (7 U.S.C. 1736m) is repealed.
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1 SEC. 258. POLICY ON MAINTENANCE AND DEVELOPMENT OF

2 EXPORT MARKETS.

3 Section 1121 of the Food Security Act of 1985 (7

4 U.S.C. 1736p) is amended—

5 (1) by striking subsection (a); and

6 (2) in subsection (b)—

7 (A) by striking ‘‘(b)’’; and

8 (B) by striking paragraphs (1) through (4)

9 and inserting the following:

10 ‘‘(1) be the premier supplier of agricultural and

11 food products to world markets and expand exports of

12 high value products;

13 ‘‘(2) support the principle of free trade and the

14 promotion of fair trade in agricultural commodities

15 and products;

16 ‘‘(3) cooperate fully in all efforts to negotiate

17 with foreign countries further reductions in tariff and

18 nontariff barriers to trade, including sanitary and

19 phytosanitary measures and trade-distorting sub20 sidies;

21 ‘‘(4) aggressively counter unfair foreign trade

22 practices as a means of encouraging fairer trade;’’.

23 SEC. 259. POLICY ON TRADE LIBERALIZATION.

24 Section 1122 of the Food Security Act of 1985 (7

25 U.S.C. 1736q) is repealed.
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1 SEC. 260. AGRICULTURAL TRADE NEGOTIATIONS.

2 Section 1123 of the Food Security Act of 1985 (7

3 U.S.C. 1736r) is amended to read as follows:

4 ‘‘SEC. 1123. TRADE NEGOTIATIONS POLICY.

5 ‘‘(a) FINDINGS.—Congress finds that—

6 ‘‘(1) on a level playing field, United States pro7 ducers are the most competitive suppliers of agricul8 tural products in the world;

9 ‘‘(2) exports of United States agricultural prod10 ucts will account for $53,000,000,000 in 1995, con11 tributing a net $24,000,000,000 to the merchandise

12 trade balance of the United States and supporting ap13 proximately 1,000,000 jobs;

14 ‘‘(3) increased agricultural exports are critical to

15 the future of the farm, rural, and overall United

16 States economy, but the opportunities for increased

17 agricultural exports are limited by the unfair sub18 sidies of the competitors of the United States, and a

19 variety of tariff and nontariff barriers to highly com20 petitive United States agricultural products;

21 ‘‘(4) international negotiations can play a key

22 role in breaking down barriers to United States agri23 cultural exports;

24 ‘‘(5) the Uruguay Round Agreement on Agri25 culture made significant progress in the attainment of

26 increased market access opportunities for United
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1 States exports of agricultural products, for the first

2 time—

3 ‘‘(A) restraining foreign trade-distorting do4 mestic support and export subsidy programs;

5 and

6 ‘‘(B) developing common rules for the appli7 cation of sanitary and phytosanitary restric8 tions;

9 that should result in increased exports of United

10 States agricultural products, jobs, and income growth

11 in the United States;

12 ‘‘(6) the Uruguay Round Agreement on Agri13 culture did not succeed in completely eliminating

14 trade distorting domestic support and export sub15 sidies by—

16 ‘‘(A) allowing the European Union to con17 tinue unreasonable levels of spending on export

18 subsidies; and

19 ‘‘(B) failing to discipline monopolistic state

20 trading entities, such as the Canadian Wheat

21 Board, that use nontransparent and discrimina22 tory pricing as a hidden de facto export subsidy;

23 ‘‘(7) during the period 1996 through 2002, there

24 will be several opportunities for the United States to

25 negotiate fairer trade in agricultural products, in-
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1 cluding further negotiations under the World Trade

2 Organization, and steps toward possible free trade

3 agreements of the Americas and Asian-Pacific Eco4 nomic Cooperation (APEC); and

5 ‘‘(8) the United States should aggressively use

6 these opportunities to achieve more open and fair op7 portunities for trade in agricultural products.

8 ‘‘(b) GOALS OF THE UNITED STATES IN AGRICUL9 TURAL TRADE NEGOTIATIONS.—The objectives of the Unit10 ed States with respect to future negotiations on agricultural

11 trade include—

12 ‘‘(1) increasing opportunities for United States

13 exports of agricultural products by eliminating or

14 substantially reducing tariff and nontariff barriers to

15 trade;

16 ‘‘(2) leveling the playing field for United States

17 producers of agricultural products by limiting per

18 unit domestic production supports to levels that are

19 no greater than those available in the United States;

20 ‘‘(3) ending the practice of export dumping by

21 eliminating all trade distorting export subsidies and

22 disciplining state trading entities so that they do not

23 (except in cases of bona fide food aid) sell in foreign

24 markets at below domestic market prices nor their full
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1 costs of acquiring and delivering agricultural prod2 ucts to the foreign markets; and

3 ‘‘(4) encouraging government policies that avoid

4 price-depressing surpluses.’’.

5 SEC. 261. POLICY ON UNFAIR TRADE PRACTICES.

6 Section 1164 of the Food Security Act of 1985 (Public

7 Law 99–198; 99 Stat. 1499) is repealed.

8 SEC. 262. AGRICULTURAL AID AND TRADE MISSIONS.

9 (a) IN GENERAL.—The Agricultural Aid and Trade

10 Missions Act (7 U.S.C. 1736bb et seq.) is repealed.

11 (b) CONFORMING AMENDMENT.—Section 7 of Public

12 Law 100–277 (7 U.S.C. 1736bb note) is repealed.

13 SEC. 263. ANNUAL REPORTS BY AGRICULTURAL ATTACHES.

14 Section 108(b)(1)(B) of the Agricultural Act of 1954

15 (7 U.S.C. 1748(b)(1)(B)) is amended by striking ‘‘including

16 fruits, vegetables, legumes, popcorn, and ducks’’.

17 SEC. 264. WORLD LIVESTOCK MARKET PRICE INFORMA18 TION.

19 Section 1545 of the Food, Agriculture, Conservation,

20 and Trade Act of 1990 (Public Law 101–624; 7 U.S.C. 1761

21 note) is repealed.

22 SEC. 265. ORDERLY LIQUIDATION OF STOCKS.

23 Sections 201 and 207 of the Agricultural Act of 1956

24 (7 U.S.C. 1851 and 1857) are repealed.
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1 SEC. 266. SALES OF EXTRA LONG STAPLE COTTON.

2 Section 202 of the Agricultural Act of 1956 (7 U.S.C.

3 1852) is repealed.

4 SEC. 267. REGULATIONS.

5 Section 707 of the Freedom for Russia and Emerging

6 Eurasian Democracies and Open Markets Support Act of

7 1992 (Public Law 102–511; 7 U.S.C. 5621 note) is amended

8 by striking subsection (d).

9 SEC. 268. EMERGING MARKETS.

10 (a) PROMOTION OF AGRICULTURAL EXPORTS TO

11 EMERGING MARKETS.—

12 (1) EMERGING MARKETS.—Section 1542 of the

13 Food, Agriculture, Conservation, and Trade Act of

14 1990 (Public Law 101–624; 7 U.S.C. 5622 note) is

15 amended—

16 (A) in the section heading, by striking

17 ‘‘EMERGING DEMOCRACIES’’ and inserting

18 ‘‘EMERGING MARKETS’’;

19 (B) by striking ‘‘emerging democracies’’

20 each place it appears in subsections (b), (d), and

21 (e) and inserting ‘‘emerging markets’’;

22 (C) by striking ‘‘emerging democracy’’ each

23 place it appears in subsection (c) and inserting

24 ‘‘emerging market’’; and

25 (D) by striking subsection (f) and inserting

26 the following:
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1 ‘‘(f) EMERGING MARKET.—In this section and section

2 1543, the term ‘emerging market’ means any country that

3 the Secretary determines—

4 ‘‘(1) is taking steps toward a market-oriented

5 economy through the food, agriculture, or rural busi6 ness sectors of the economy of the country; and

7 ‘‘(2) has the potential to provide a viable and

8 significant market for United States agricultural

9 commodities or products of United States agricultural

10 commodities.’’.

11 (2) FUNDING.—Section 1542 of the Food, Agri12 culture, Conservation, and Trade Act of 1990 is

13 amended by striking subsection (a) and inserting the

14 following:

15 ‘‘(a) FUNDING.—The Commodity Credit Corporation

16 shall make available for fiscal years 1996 through 2002 not

17 less than $1,000,000,000 of direct credits or export credit

18 guarantees for exports to emerging markets under section

19 201 or 202 of the Agricultural Trade Act of 1978 (7 U.S.C.

20 5621 and 5622), in addition to the amounts acquired or

21 authorized under section 211 of the Act (7 U.S.C. 5641)

22 for the program.’’.

23 (3) AGRICULTURAL FELLOWSHIP PROGRAM.—

24 Section 1542 of the Food, Agriculture, Conservation,

25 and Trade Act of 1990 is amended—
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1 (A) in subsection (b), by striking the last

2 sentence and inserting the following: ‘‘The Com3 modity Credit Corporation shall give priority

4 under this subsection to—

5 ‘‘(A) projects that encourage the privatization of

6 the agricultural sector or that benefit private farms or

7 cooperatives in emerging markets; and

8 ‘‘(B) projects for which nongovernmental persons

9 agree to assume a relatively larger share of the costs.’’;

10 and

11 (B) in subsection (d)—

12 (i) in the matter preceding paragraph

13 (1), by striking ‘‘the Soviet Union’’ and in14 serting ‘‘emerging markets’’;

15 (ii) in paragraph (1)—

16 (I) in subparagraph (A)(i)—

17 (aa) by striking ‘‘1995’’ and

18 inserting ‘‘2002’’; and

19 (bb) by striking ‘‘those sys20 tems, and identify’’ and inserting

21 ‘‘the systems, including potential

22 reductions in trade barriers, and

23 identify and carry out’’;

24 (II) in subparagraph (B), by

25 striking ‘‘shall’’ and inserting ‘‘may’’;
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1 (III) in subparagraph (D), by in2 serting ‘‘(including the establishment of

3 extension services)’’ after ‘‘technical as4 sistance’’;

5 (IV) by striking subparagraph

6 (F);

7 (V) by redesignating subpara8 graphs (G), (H), and (I) as subpara9 graphs (F), (G), and (H), respectively;

10 and

11 (VI) in subparagraph (H) (as re12 designated by subclause (V)), by strik13 ing ‘‘$10,000,000’’ and inserting

14 ‘‘$20,000,000’’;

15 (iii) in paragraph (2)—

16 (I) by striking ‘‘the Soviet Union’’

17 each place it appears and inserting

18 ‘‘emerging markets’’;

19 (II) in subparagraph (A), by

20 striking ‘‘a free market food production

21 and distribution system’’ and inserting

22 ‘‘free market food production and dis23 tribution systems’’;

24 (III) in subparagraph (B)—
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1 (aa) in clause (i), by striking

2 ‘‘Government’’ and inserting

3 ‘‘governments’’;

4 (bb) in clause (iii)(II), by

5 striking ‘‘and’’ at the end;

6 (cc) in clause (iii)(III), by

7 striking the period at the end and

8 inserting ‘‘; and’’; and

9 (dd) by adding at the end of

10 clause (iii) the following:

11 ‘‘(IV) to provide for the exchange

12 of administrators and faculty members

13 from agricultural and other institu14 tions to strengthen and revise edu15 cational programs in agricultural eco16 nomics, agribusiness, and agrarian

17 law, to support change towards a free

18 market economy in emerging mar19 kets.’’;

20 (IV) by striking subparagraph

21 (D); and

22 (V) by redesignating subpara23 graph (E) as subparagraph (D); and

24 (iv) by striking paragraph (3).
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1 (4) UNITED STATES AGRICULTURAL COMMOD2 ITY.—Subsections (b) and (c) of section 1542 of the

3 Food, Agriculture, Conservation, and Trade Act of

4 1990 are amended by striking ‘‘section 101(6)’’ each

5 place it appears and inserting ‘‘section 102(7)’’.

6 (5) REPORT.—The first sentence of section

7 1542(e)(2) of the Food, Agriculture, Conservation,

8 and Trade Act of 1990 is amended by striking ‘‘Not’’

9 and inserting ‘‘Subject to section 217 of the Depart10 ment of Agriculture Reorganization Act of 1994 (7

11 U.S.C. 6917), not’’.

12 (b) AGRICULTURAL FELLOWSHIP PROGRAM FOR MID13 DLE INCOME COUNTRIES, EMERGING DEMOCRACIES, AND

14 EMERGING MARKETS.—Section 1543 of the Food, Agri15 culture, Conservation, and Trade Act of 1990 (7 U.S.C.

16 3293) is amended—

17 (1) in the section heading, by striking ‘‘MIDDLE

18 INCOME COUNTRIES AND EMERGING DEMOC19 RACIES’’ and inserting ‘‘MIDDLE INCOME COUN20 TRIES, EMERGING DEMOCRACIES, AND EMERG21 ING MARKETS’’;

22 (2) in subsection (b), by adding at the end the

23 following:

24 ‘‘(5) EMERGING MARKET.—Any emerging mar25 ket, as defined in section 1542(f).’’; and
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1 (3) in subsection (c)(1), by striking ‘‘food needs’’

2 and inserting ‘‘food and fiber needs’’.

3 (c) CONFORMING AMENDMENTS.—

4 (1) Section 501 of the Agricultural Trade Devel5 opment and Assistance Act of 1954 (7 U.S.C. 1737)

6 is amended—

7 (A) in subsection (a), by striking ‘‘emerging

8 democracies’’ and inserting ‘‘emerging markets’’;

9 and

10 (B) in subsection (b), by striking paragraph

11 (1) and inserting the following:

12 ‘‘(1) EMERGING MARKET.—The term ‘emerging

13 market’ means any country that the Secretary deter14 mines—

15 ‘‘(A) is taking steps toward a market-ori16 ented economy through the food, agriculture, or

17 rural business sectors of the economy of the coun18 try; and

19 ‘‘(B) has the potential to provide a viable

20 and significant market for United States agri21 cultural commodities or products of United

22 States agricultural commodities.’’.

23 (2) Section 201(d)(1)(C)(ii) of the Agricultural

24 Trade Act of 1978 (7 U.S.C. 5621(d)(1)(C)(ii)) is
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1 amended by striking ‘‘emerging democracies’’ and in2 serting ‘‘emerging markets’’.

3 (3) Section 202(d)(3)(B) of the Agricultural

4 Trade Act of 1978 (7 U.S.C. 5622(d)(3)(B)) is

5 amended by striking ‘‘emerging democracies’’ and in6 serting ‘‘emerging markets’’.

7 SEC. 269. IMPORT ASSISTANCE FOR CBI BENEFICIARY

8 COUNTRIES AND THE PHILIPPINES.

9 Section 583 of Public Law 100–202 (101 Stat. 1329–

10 182) is repealed.

11 SEC. 270. STUDIES, REPORTS, AND OTHER PROVISIONS.

12 (a) IN GENERAL.—Sections 1551 through 1555, section

13 1559, and section 1560 of subtitle E of title XV of the Food,

14 Agriculture, Conservation, and Trade Act of 1990 (Public

15 Law 101–624; 104 Stat. 3696) are repealed.

16 (b) LANGUAGE PROFICIENCY.—Section 1556 of the

17 Food, Agriculture, Conservation, and Trade Act of 1990

18 (Public Law 101–624; 7 U.S.C. 5694 note) is amended by

19 striking subsection (c).

20 SEC. 271. IMPLEMENTATION OF COMMITMENTS UNDER

21 URUGUAY ROUND AGREEMENTS.

22 Part III of subtitle A of title IV of the Uruguay Round

23 Agreements Act (Public Law 103–465; 108 Stat. 4964) is

24 amended by adding at the end the following:
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1 ‘‘SEC. 427. IMPLEMENTATION OF COMMITMENTS UNDER

2 URUGUAY ROUND AGREEMENTS.

3 ‘‘Not later than September 30 of each fiscal year, the

4 Secretary of Agriculture shall determine whether the obliga5 tions undertaken by foreign countries under the Uruguay

6 Round Agreement on Agriculture are being fully imple7 mented. If the Secretary of Agriculture determines that any

8 foreign country, by not implementing the obligations of the

9 country, is significantly constraining an opportunity for

10 United States agricultural exports, the Secretary shall—

11 ‘‘(1) submit to the United States Trade Rep12 resentative a recommendation as to whether the Presi13 dent should take action under any provision of law;

14 and

15 ‘‘(2) transmit a copy of the recommendation to

16 the Committee on Agriculture, and the Committee on

17 Ways and Means, of the House of Representatives and

18 the Committee on Agriculture, Nutrition, and For19 estry, and the Committee on Finance, of the Senate.’’.

20 SEC. 272. SENSE OF CONGRESS CONCERNING MULTILAT21 ERAL DISCIPLINES ON CREDIT GUARANTEES.

22 It is the sense of Congress that—

23 (1) in negotiations to establish multilateral dis24 ciplines on agricultural export credits and credit

25 guarantees, the United States should not agree to any

26 arrangement that is incompatible with the provisions
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1 of United States law that authorize agricultural ex2 port credits and credit guarantees;

3 (2) in the negotiations (which are held under the

4 auspices of the Organization for Economic Coopera5 tion and Development), the United States should not

6 reach any agreement that fails to impose disciplines

7 on the practices of foreign government trading entities

8 such as the Australian Wheat Board and Canadian

9 Wheat Board; and

10 (3) the disciplines should include greater open11 ness in the operations of the entities as long as the

12 entities are subsidized by the foreign government or

13 have monopolies for exports of a commodity that are

14 sanctioned by the foreign government.

15 SEC. 273. 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—
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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 and,

9 in cooperation with eligible trade organizations, carry out

10 a foreign market development cooperator program to main11 tain and develop foreign markets for United States agricul12 tural 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 or16 ganization under a contract or agreement with the or17 ganization; and

18 ‘‘(2) assistance for other costs that are necessary

19 or appropriate to carry out the foreign market devel20 opment cooperator 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.’’.
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1 SEC. 274. PRICE SUPPORT FOR RICE.

2 Section 101 of the Agricultural Act of 1949 is amended

3 by adding a subsection (e) that reads as follows:

4 ‘‘(e) RICE.—The Secretary shall make available to pro5 ducers of each crop of rice on a farm price support at a

6 level that is not less than 50%, or more than 90% of the

7 parity price for rice as the Secretary determines will not

8 result in increasing stocks of rice to the Commodity Credit

9 Corporation.’’.

10 TITLE III—CONSERVATION

11 Subtitle A—Definitions

12 SEC. 301. DEFINITIONS.

13 Section 1201(a) of the Food Security Act of 1985 (16

14 U.S.C. 3801(a)) is amended—

15 (1) by redesignating paragraphs (3) through (16)

16 as paragraphs (4) through (17), respectively; and

17 (2) by inserting after paragraph (2) the follow18 ing:

19 ‘‘(3) CONSERVATION SYSTEM.—The term ‘con20 servation system’ means the conservation measures

21 and practices that are approved for application by a

22 producer to a highly erodible field and that provide

23 for cost effective and practical erosion reduction on

24 the field based on local resource conditions and stand25 ards contained in the Natural Resources Conservation

26 Service field office technical guide.’’.
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1 Subtitle B—Environmental Con2 servation Acreage Reserve Pro3 gram

4 SEC. 311. ENVIRONMENTAL CONSERVATION ACREAGE RE5 SERVE PROGRAM.

6 Section 1230 of the Food Security Act of 1985 (16

7 U.S.C. 3830) is amended to read as follows:

8 ‘‘SEC. 1230. ENVIRONMENTAL CONSERVATION ACREAGE RE9 SERVE PROGRAM.

10 ‘‘(a) ESTABLISHMENT.—

11 ‘‘(1) IN GENERAL.—During the 1996 through

12 2002 calendar years, the Secretary shall establish an

13 environmental conservation acreage reserve program

14 (referred to in this section as ‘ECARP’) to be imple15 mented through contracts and the acquisition of ease16 ments to assist owners and operators of farms and

17 ranches to conserve and enhance soil, water, and re18 lated natural resources, including grazing land, wet19 land, and wildlife habitat.

20 ‘‘(2) MEANS.—The Secretary shall carry out the

21 ECARP by—

22 ‘‘(A) providing for the long-term protection

23 of environmentally sensitive land; and

24 ‘‘(B) providing technical and financial as25 sistance to farmers and ranchers to—
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1 ‘‘(i) improve the management and op2 eration of the farms and ranches; and

3 ‘‘(ii) reconcile productivity and profit4 ability with protection and enhancement of

5 the environment.

6 ‘‘(3) PROGRAMS.—The ECARP shall consist of—

7 ‘‘(A) the conservation reserve program es8 tablished under subchapter B;

9 ‘‘(B) the wetlands reserve program estab10 lished under subchapter C;

11 ‘‘(C) the environmental quality incentives

12 program established under chapter 4; and

13 ‘‘(D) a farmland protection program under

14 which the Secretary shall use funds of the Com15 modity Credit Corporation for the purchase of

16 conservation easements or other interests in not

17 less than 170,000, nor more than 340,000, acres

18 of land with prime, unique, or other productive

19 soil that is subject to a pending offer from a

20 State or local government for the purpose of pro21 tecting topsoil by limiting nonagricultural uses

22 of the land, except that any highly erodible crop23 land shall be subject to the requirements of a

24 conservation plan, including, if required by the

25 Secretary, the conversion of the land to less in-
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1 tensive uses. In no case shall total expenditures

2 of funding from the Commodity Credit Corpora3 tion exceed a total of $35,000,000 over the first

4 3 and subsequent fiscal years.

5 ‘‘(b) ADMINISTRATION.—

6 ‘‘(1) IN GENERAL.—In carrying out the ECARP,

7 the Secretary shall enter into contracts with owners

8 and operators and acquire interests in land through

9 easements from owners, as provided in this chapter

10 and chapter 4.

11 ‘‘(2) PRIOR ENROLLMENTS.—Acreage enrolled in

12 the conservation reserve or wetlands reserve program

13 prior to the effective date of this paragraph shall be

14 considered to be placed into the ECARP.

15 ‘‘(c) CONSERVATION PRIORITY AREAS.—

16 ‘‘(1) DESIGNATION.—

17 ‘‘(A) IN GENERAL.—The Secretary shall

18 designate watersheds or regions of special envi19 ronmental sensitivity, including the Chesapeake

20 Bay Region (consisting of Pennsylvania, Mary21 land, and Virginia), the Great Lakes Region, the

22 Rainwater Basin Region, the Lake Champlain

23 Basin, the Prairie Pothole Region, and the Long

24 Island Sound Region, as conservation priority

25 areas that are eligible for enhanced assistance
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1 through the programs established under this

2 chapter and chapter 4.

3 ‘‘(B) APPLICATION.—A designation shall be

4 made under this paragraph if agricultural prac5 tices on land within the watershed or region pose

6 a significant threat to soil, water, and related

7 natural resources, as determined by the Sec8 retary, and an application is made by—

9 ‘‘(i) a State agency in consultation

10 with the State technical committee estab11 lished under section 1261; or

12 ‘‘(ii) State agencies from several States

13 that agree to form an interstate conserva14 tion priority area.

15 ‘‘(C) ASSISTANCE.—The Secretary shall des16 ignate a watershed or region of special environ17 mental sensitivity as a conservation priority

18 area to assist, to the maximum extent prac19 ticable, agricultural producers within the water20 shed or region to comply with nonpoint source

21 pollution requirements under the Federal Water

22 Pollution Control Act (33 U.S.C. 1251 et seq.)

23 and other Federal and State environmental laws.

24 ‘‘(2) APPLICABILITY.—The Secretary shall des25 ignate a watershed or region of special environmental
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1 sensitivity as a conservation priority area in a man2 ner that conforms, to the maximum extent prac3 ticable, to the functions and purposes of the conserva4 tion reserve, wetlands reserve, and environmental

5 quality incentives programs, as applicable, if partici6 pation in the program or programs is likely to result

7 in the resolution or amelioration of significant soil,

8 water, and related natural resource problems related

9 to agricultural production activities within the water10 shed or region.

11 ‘‘(3) TERMINATION.—A conservation priority

12 area designation shall terminate on the date that is

13 5 years after the date of the designation, except that

14 the Secretary may—

15 ‘‘(A) redesignate the area as a conservation

16 priority area; or

17 ‘‘(B) withdraw the designation of a water18 shed or region if the Secretary determines the

19 area is no longer affected by significant

20 soil,water, and related natural resource impacts

21 related to agricultural production activities.’’.

22 SEC. 312. CONSERVATION RESERVE PROGRAM.

23 (a) IN GENERAL.—Section 1231 of the Food Security

24 Act of 1985 (16 U.S.C. 3831) is amended—
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1 (1) by striking ‘‘1995’’ each place it appears and

2 inserting ‘‘2002’’; and

3 (2) in subsection (d), by striking ‘‘38,000,000’’

4 and inserting ‘‘36,520,000’’.

5 (b) DUTIES OF OWNERS AND OPERATORS.—Section

6 1232(c) of the Food Security Act of 1985 (16 U.S.C.

7 3832(c)) is amended by striking ‘‘1995’’ and inserting

8 ‘‘2002’’.

9 (c) RELATIONSHIP TO OTHER LAW.—The authority

10 granted to the Secretary of Agriculture as a result of the

11 amendments made by this section shall supersede any re12 striction on the operation of the conservation reserve pro13 gram established under any other provision of law.

14 SEC. 313. WETLANDS RESERVE PROGRAM.

15 (a) PURPOSES.—Section 1237(a) of the Food Security

16 Act of 1985 (16 U.S.C. 3837(a)) is amended by striking

17 ‘‘to assist owners of eligible lands in restoring and protect18 ing wetlands’’ and inserting ‘‘to protect wetlands for pur19 poses of enhancing water quality and providing wildlife

20 benefits while recognizing landowner rights’’.

21 (b) ENROLLMENT.—Section 1237 of the Food Security

22 Act of 1985 (16 U.S.C. 3837) is amended by striking sub23 section (b) and inserting the following:

24 ‘‘(b) MINIMUM ENROLLMENT.—The Secretary shall en25 roll into the wetlands reserve program—
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1 ‘‘(1) during the 1996 through 2002 calendar

2 years, a total of not more than 975,000 acres; and

3 ‘‘(2) beginning with offers accepted by the Sec4 retary during calendar year 1997, to the maximum

extent practicable, 1 5 ⁄3 of the acres in permanent easements, 1⁄3 of the acres in 30-year easements, and 1 6 ⁄3

7 of the acres in restoration cost-share agreements.’’.

8 (c) ELIGIBILITY.—Section 1237(c) of the Food Secu9 rity Act of 1985 (16 U.S.C. 3837(c)) is amended—

10 (1) by striking ‘‘2000’’ and inserting ‘‘2002’’;

11 and

12 (2) by inserting ‘‘the land maximizes wildlife

13 benefits and wetland values and functions and’’ after

14 ‘‘determines that’’.

15 (d) OTHER ELIGIBLE LANDS.—Section 1237(d) (16

16 U.S.C. 3837(d)) is amended by inserting after ‘‘subsection

17 (c)’’ the following ‘‘, land that maximizes wildlife benefits

18 and that is’’.

19 (e) EASEMENTS.—Section 1237A of the Food Security

20 Act of 1985 (16 U.S.C. 3837a) is amended—

21 (1) in the section heading, by inserting before the

22 period at the end the following: ‘‘AND AGREE23 MENTS’’;

24 (2) by striking subsection (c) and inserting the

25 following:
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1 ‘‘(c) RESTORATION PLANS.—The development of a res2 toration plan, including any compatible use, under this sec3 tion shall be made through the local Natural Resources Con4 servation Service representative, in consultation with the

5 State technical committee.’’;

6 (3) in subsection (f), by striking the third sen7 tence and inserting the following: ‘‘Compensation

8 may be provided in not less than 5, nor more than

9 30, annual payments of equal or unequal size, as

10 agreed to by the owner and the Secretary.’’; and

11 (4) by adding at the end the following:

12 ‘‘(h) COST SHARE AGREEMENTS.—The Secretary may

13 enroll land into the wetland reserve through agreements that

14 require the landowner to restore wetlands on the land, if

15 the agreement does not provide the Secretary with an ease16 ment.’’.

17 (f) COST SHARE AND TECHNICAL ASSISTANCE.—Sec18 tion 1237C of the Food Security Act of 1985 (16 U.S.C.

19 3837c) is amended by striking subsection (b) and inserting

20 the following:

21 ‘‘(b) COST SHARE AND TECHNICAL ASSISTANCE.—In

22 the case of an easement entered into during the 1996

23 through 2002 calendar years, in making cost share pay24 ments under subsection (a)(1), the Secretary shall—
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1 ‘‘(1) in the case of a permanent easement, pay

2 the owner an amount that is not less than 75 percent,

3 but not more than 100 percent, of the eligible costs;

4 ‘‘(2) in the case of a 30-year easement or a cost5 share agreement, pay the owner an amount that is

6 not less than 50 percent, but not more than 75 per7 cent, of the eligible costs; and

8 ‘‘(3) provide owners technical assistance to assist

9 landowners in complying with the terms of easements

10 and agreements.’’.

11 SEC. 314. ENVIRONMENTAL QUALITY INCENTIVES PRO12 GRAM.

13 Subtitle D of title XII of the Food Security Act of 1985

14 (16 U.S.C. 3830 et seq.) is amended by adding at the end

15 the following:

16 ‘‘CHAPTER 4—ENVIRONMENTAL QUALITY

17 INCENTIVES PROGRAM

18 ‘‘SEC. 1238. FINDINGS AND PURPOSES.

19 ‘‘(a) FINDINGS.—Congress finds that—

20 ‘‘(1) farmers and ranchers cumulatively manage

more than 1 21 ⁄2 of the private lands in the continental

22 United States;

23 ‘‘(2) because of the predominance of agriculture,

24 the soil, water, and related natural resources of the

25 United States cannot be protected without cooperative
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1 relationships between the Federal Government and

2 farmers and ranchers;

3 ‘‘(3) farmers and ranchers have made tremen4 dous progress in protecting the environment and the

5 agricultural resource base of the United States over

6 the past decade because of not only Federal Govern7 ment programs but also their spirit of stewardship

8 and the adoption of effective technologies;

9 ‘‘(4) it is in the interest of the entire United

10 States that farmers and ranchers continue to strive to

11 preserve soil resources and make more efforts to pro12 tect water quality and wildlife habitat, and address

13 other broad environmental concerns;

14 ‘‘(5) environmental strategies that stress the pru15 dent management of resources, as opposed to idling

16 land, will permit the maximum economic opportuni17 ties for farmers and ranchers in the future;

18 ‘‘(6) unnecessary bureaucratic and paperwork

19 barriers associated with existing agricultural con20 servation assistance programs decrease the potential

21 effectiveness of the programs; and

22 ‘‘(7) the recent trend of Federal spending on ag23 ricultural conservation programs suggests that assist24 ance to farmers and ranchers in future years will, ab-
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1 sent changes in policy, dwindle to perilously low lev2 els.

3 ‘‘(b) PURPOSES.—The purposes of the environmental

4 quality incentives program established by this chapter are

5 to—

6 ‘‘(1) combine into a single program the functions

7 of—

8 ‘‘(A) the agricultural conservation program

9 authorized by sections 7 and 8 of the Soil Con10 servation and Domestic Allotment Act (16 U.S.C.

11 590g and 590h) (as in effect before the amend12 ments made by section 355(a)(1) of the Agricul13 tural Reform and Improvement Act of 1996);

14 ‘‘(B) the Great Plains conservation program

15 established under section 16(b) of the Soil Con16 servation and Domestic Allotment Act (16 U.S.C.

17 590p(b)) (as in effect before the amendment

18 made by section 355(b)(1) of the Agricultural

19 Reform and Improvement Act of 1996); and

20 ‘‘(C) the water quality incentives program

21 established under chapter 2 (as in effect before

22 the amendment made by section 355(k) of the

23 Agricultural Reform and Improvement Act of

24 1996); and
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1 ‘‘(C) the Colorado River Basin salinity con2 trol program established under section 202(c) of

3 the Colorado River Basin Salinity Control Act

4 (43 U.S.C. 1592(c)) (as in effect before the

5 amendment made by section 355(c)(1) of the Ag6 ricultural Reform and Improvement Act of

7 1996); and

8 ‘‘(2) carry out the single program in a manner

9 that maximizes environmental benefits per dollar ex10 pended, and that provides—

11 ‘‘(A) flexible technical and financial assist12 ance to farmers and ranchers that face the most

13 serious threats to soil, water, and related natural

14 resources, including grazing lands, wetlands, and

15 wildlife habitat;

16 ‘‘(B) assistance to farmers and ranchers in

17 complying with this title and Federal and State

18 environmental laws, and to encourage environ19 mental enhancement;

20 ‘‘(C) assistance to farmers and ranchers in

21 making beneficial, cost-effective changes to crop22 ping systems, grazing management, manure, nu23 trient, pest, or irrigation management, land

24 uses, or other measures needed to conserve and
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1 improve soil, water, and related natural re2 sources; and

3 ‘‘(D) for the consolidation and simplifica4 tion of the conservation planning process to re5 duce administrative burdens on the owners and

6 operators of farms and ranches.

7 ‘‘SEC. 1238A. DEFINITIONS.

8 ‘‘In this chapter:

9 ‘‘(1) LAND MANAGEMENT PRACTICE.—The term

10 ‘land management practice’ means nutrient or ma11 nure management, integrated pest management, irri12 gation management, tillage or residue management,

13 grazing management, or another land management

14 practice the Secretary determines is needed to protect

15 soil, water, or related resources in the most cost effec16 tive manner.

17 ‘‘(2) LARGE CONFINED LIVESTOCK OPERATION.—

18 The term ‘large confined livestock operation’ means a

19 farm or ranch that—

20 ‘‘(A) is a confined animal feeding oper21 ation; and

22 ‘‘(B) has more than—

23 ‘‘(i) 700 mature dairy cattle;

24 ‘‘(ii) 1,000 beef cattle;

25 ‘‘(iii) 100,000 laying hens or broilers;
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1 ‘‘(iv) 55,000 turkeys;

2 ‘‘(v) 2,500 swine; or

3 ‘‘(vi) 10,000 sheep or lambs.

4 ‘‘(3) LIVESTOCK.—The term ‘livestock’ means

5 mature dairy cows, beef cattle, laying hens, broilers,

6 turkeys, swine, sheep, or lambs.

7 ‘‘(4) OPERATOR.—The term ‘operator’ means a

8 person who is engaged in crop or livestock production

9 (as defined by the Secretary).

10 ‘‘(5) STRUCTURAL PRACTICE.—The term ‘struc11 tural practice’ means the establishment of an animal

12 waste management facility, terrace, grassed water13 way, contour grass strip, filterstrip, permanent wild14 life habitat, or another structural practice that the

15 Secretary determines is needed to protect soil, water,

16 or related resources in the most cost effective manner.

17 ‘‘SEC. 1238B. ESTABLISHMENT AND ADMINISTRATION OF

18 ENVIRONMENTAL QUALITY INCENTIVES PRO19 GRAM.

20 ‘‘(a) ESTABLISHMENT.—

21 ‘‘(1) IN GENERAL.—During the 1996 through

22 2002 fiscal years, the Secretary shall provide tech23 nical assistance, cost-sharing payments, and incentive

24 payments, education to operators, who enter into con25 tracts with the Secretary, through an environmental
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1 quality incentives program in accordance with this

2 chapter.

3 ‘‘(2) ELIGIBLE PRACTICES.—

4 ‘‘(A) STRUCTURAL PRACTICES.—An opera5 tor who implements a structural practice shall be

6 eligible for technical assistance or cost-sharing

7 payments, education or both.

8 ‘‘(B) LAND MANAGEMENT PRACTICES.—An

9 operator who performs a land management prac10 tice shall be eligible for technical assistance or

11 incentive payments, education or both.

12 ‘‘(b) APPLICATION AND TERM.—A contract between an

13 operator and the Secretary under this chapter may—

14 ‘‘(1) apply to 1 or more structural practices or

15 1 or more land management practices, or both; and

16 ‘‘(2) have a term of not less than 5, nor more

17 than 10, years, as determined appropriate by the Sec18 retary, depending on the practice or practices that are

19 the basis of the contract.

20 ‘‘(c) STRUCTURAL PRACTICES.—

21 ‘‘(1) COMPETITIVE OFFER.—The Secretary shall

22 administer a competitive offer system for operators

23 proposing to receive cost-sharing payments in ex24 change for the implementation of 1 or more structural
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1 practices by the operator. The competitive offer system

2 shall consist of—

3 ‘‘(A) the submission of a competitive offer

4 by the operator in such manner as the Secretary

5 may prescribe; and

6 ‘‘(B) evaluation of the offer in light of the

7 priorities established in section 1238C and the

8 projected cost of the proposal, as determined by

9 the Secretary.

10 ‘‘(2) CONCURRENCE OF OWNER.—If the operator

11 making an offer to implement a structural practice is

12 a tenant of the land involved in agricultural produc13 tion, for the offer to be acceptable, the operator shall

14 obtain the concurrence of the owner of the land with

15 respect to the offer.

16 ‘‘(d) LAND MANAGEMENT PRACTICES.—The Secretary

17 shall establish an application and evaluation process for

18 awarding technical assistance or incentive payments, or

19 both, to an operator in exchange for the performance of 1

20 or more land management practices by the operator.

21 ‘‘(e) COST-SHARING AND INCENTIVE PAYMENTS.—

22 ‘‘(1) COST-SHARING PAYMENTS.—

23 ‘‘(A) IN GENERAL.—The Federal share of

24 cost-sharing payments to an operator proposing

25 to implement 1 or more structural practices shall
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1 not be more than 75 percent of the projected cost

2 of the practice, as determined by the Secretary,

3 taking into consideration any payment received

4 by the operator from a State or local govern5 ment.

6 ‘‘(B) LIMITATION.—An operator of a large

7 confined livestock operation shall not be eligible

8 for cost-sharing payments to construct an ani9 mal waste management facility.

10 ‘‘(C) OTHER PAYMENTS.—An operator shall

11 not be eligible for cost-sharing payments for

12 structural practices on eligible land under this

13 chapter if the operator receives cost-sharing pay14 ments or other benefits for the same land under

15 chapter 1 or 3.

16 ‘‘(2) INCENTIVE PAYMENTS.—The Secretary shall

17 make incentive payments in an amount and at a rate

18 determined by the Secretary to be necessary to encour19 age an operator to perform 1 or more land manage20 ment practices.

21 ‘‘(f) TECHNICAL ASSISTANCE.—

22 ‘‘(1) FUNDING.—The Secretary shall allocate

23 funding under this chapter for the provision of tech24 nical assistance according to the purpose and pro25 jected cost for which the technical assistance is pro-
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1 vided in a fiscal year. The allocated amount may

2 vary according to the type of expertise required,

3 quantity of time involved, and other factors as deter4 mined appropriate by the Secretary. Funding shall

5 not exceed the projected cost to the Secretary of the

6 technical assistance provided in a fiscal year.

7 ‘‘(2) OTHER AUTHORITIES.—The receipt of tech8 nical assistance under this chapter shall not affect the

9 eligibility of the operator to receive technical assist10 ance under other authorities of law available to the

11 Secretary.

12 ‘‘(g) MODIFICATION OR TERMINATION OF CON13 TRACTS.—

14 ‘‘(1) VOLUNTARY MODIFICATION OR TERMI15 NATION.—The Secretary may modify or terminate a

16 contract entered into with an operator under this

17 chapter if—

18 ‘‘(A) the operator agrees to the modification

19 or termination; and

20 ‘‘(B) the Secretary determines that the

21 modification or termination is in the public in22 terest.

23 ‘‘(2) INVOLUNTARY TERMINATION.—The Sec24 retary may terminate a contract under this chapter
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1 if the Secretary determines that the operator violated

2 the contract.

3 ‘‘(h) NON-FEDERAL ASSISTANCE.—

4 ‘‘(1) IN GENERAL.—The Secretary may request

5 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 ap8 propriate to assist in providing the technical assist9 ance necessary for the development and implementa10 tion of a structural practice or land management

11 practice.

12 ‘‘(2) LIMITATION ON LIABILITY.—No person shall

13 be permitted to bring or pursue any claim or action

14 against any official or entity based on or resulting

15 from any technical assistance provided to an operator

16 under this chapter to assist in complying with a Fed17 eral or State environmental law.

18 ‘‘SEC. 1238C. EVALUATION OF OFFERS AND PAYMENTS.

19 ‘‘(a) REGIONAL PRIORITIES.—The Secretary shall pro20 vide technical assistance, cost-sharing payments, and incen21 tive payments to operators in a region, watershed, or con22 servation priority area under this chapter based on the sig23 nificance of the soil, water, and related natural resource

24 problems in the region, watershed, or area, and the struc-
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1 tural practices or land management practices that best ad2 dress the problems, as determined by the Secretary.

3 ‘‘(b) MAXIMIZATION OF ENVIRONMENTAL BENEFITS.—

4 ‘‘(1) IN GENERAL.—In providing technical as5 sistance, cost-sharing payments, and incentive pay6 ments to operators in regions, watersheds, or con7 servation priority areas under this chapter, the Sec8 retary shall accord a higher priority to assistance and

9 payments that maximize environmental benefits per

10 dollar expended.

11 ‘‘(2) NATIONAL AND REGIONAL PRIORITY.—The

12 prioritization shall be done nationally as well as

13 within the conservation priority area, region, or wa14 tershed in which an agricultural operation is located.

15 ‘‘(3) CRITERIA.—To carry out this subsection,

16 the Secretary shall establish criteria for implementing

17 structural practices and land management practices

18 that best achieve conservation goals for a region, wa19 tershed, or conservation priority area, as determined

20 by the Secretary.

21 ‘‘(c) STATE OR LOCAL CONTRIBUTIONS.—The Sec22 retary shall accord a higher priority to operators whose ag23 ricultural operations are located within watersheds, regions,

24 or conservation priority areas in which State or local gov25 ernments have provided, or will provide, financial or tech-
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1 nical assistance to the operators for the same conservation

2 or environmental purposes.

3 ‘‘(d) PRIORITY LANDS.—The Secretary shall accord a

4 higher priority to structural practices or land management

5 practices on lands on which agricultural production has

6 been determined to contribute to, or create, the potential

7 for failure to meet applicable water quality standards or

8 other environmental objectives of a Federal or State law.

9 ‘‘SEC. 1238D. DUTIES OF OPERATORS.

10 ‘‘To receive technical assistance, cost-sharing pay11 ments, or incentives payments under this chapter, an opera12 tor shall agree—

13 ‘‘(1) to implement an environmental quality in14 centives program plan that describes conservation and

15 environmental goals to be achieved through a struc16 tural practice or land management practice, or both,

17 that is approved by the Secretary;

18 ‘‘(2) not to conduct any practices on the farm or

19 ranch that would tend to defeat the purposes of this

20 chapter;

21 ‘‘(3) on the violation of a term or condition of

22 the contract at any time the operator has control of

23 the land, to refund any cost-sharing or incentive pay24 ment received with interest, and forfeit any future
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1 payments under this chapter, as determined by the

2 Secretary;

3 ‘‘(4) on the transfer of the right and interest of

4 the operator in land subject to the contract, unless the

5 transferee of the right and interest agrees with the

6 Secretary to assume all obligations of the contract, to

7 refund all cost-sharing payments and incentive pay8 ments received under this chapter, as determined by

9 the Secretary;

10 ‘‘(5) to supply information as required by the

11 Secretary to determine compliance with the environ12 mental quality incentives program plan and require13 ments of the program; and

14 ‘‘(6) to comply with such additional provisions

15 as the Secretary determines are necessary to carry out

16 the environmental quality incentives program plan.

17 ‘‘SEC. 1238E. ENVIRONMENTAL QUALITY INCENTIVES PRO18 GRAM PLAN.

19 ‘‘An environmental quality incentives program plan

20 shall include (as determined by the Secretary)—

21 ‘‘(1) a description of the prevailing farm or

22 ranch enterprises, cropping patterns, grazing man23 agement, cultural practices, or other information that

24 may be relevant to conserving and enhancing soil,

25 water, and related natural resources;
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1 ‘‘(2) a description of relevant farm or ranch re2 sources, including soil characteristics, rangeland types

3 and condition, proximity to water bodies, wildlife

4 habitat, or other relevant characteristics of the farm

5 or ranch related to the conservation and environ6 mental objectives set forth in the plan;

7 ‘‘(3) a description of specific conservation and

8 environmental objectives to be achieved;

9 ‘‘(4) to the extent practicable, specific, quan10 titative goals for achieving the conservation and envi11 ronmental objectives;

12 ‘‘(5) a description of 1 or more structural prac13 tices or 1 or more land management practices, or

14 both, to be implemented to achieve the conservation

15 and environmental objectives;

16 ‘‘(6) a description of the timing and sequence for

17 implementing the structural practices or land man18 agement practices, or both, that will assist the opera19 tor in complying with Federal and State environ20 mental laws; and

21 ‘‘(7) information that will enable evaluation of

22 the effectiveness of the plan in achieving the conserva23 tion and environmental objectives, and that will en24 able evaluation of the degree to which the plan has

25 been implemented.
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1 ‘‘(8) Not withstanding any provision of law, the

2 Secretary shall ensure that the process of writing, de3 veloping, and assisting in the implementation of

4 plans required in the programs established under this

5 title be open to individuals in agribusiness including

6 but not limited to agricultural producers, representa7 tives from agricultural cooperatives, agricultural

8 input retail dealers, and certified crop advisers. This

9 process shall be included in but not limited to pro10 grams and plans established under this title and any

11 other Department program using incentive, technical

12 assistance, cost-share or pilot project programs that

13 require plans.

14 ‘‘SEC. 1238F. DUTIES OF THE SECRETARY.

15 ‘‘To the extent appropriate, the Secretary shall assist

16 an operator in achieving the conservation and environ17 mental goals of an environmental quality incentives pro18 gram plan by—

19 ‘‘(1) providing an eligibility assessment of the

20 farming or ranching operation of the operator as a

21 basis for developing the plan;

22 ‘‘(2) providing technical assistance in developing

23 and implementing the plan;

24 ‘‘(3) providing technical assistance, cost-sharing

25 payments, or incentive payments for developing and
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1 implementing 1 or more structural practices or 1 or

2 more land management practices, as appropriate;

3 ‘‘(4) providing the operator with information,

4 education, and training to aid in implementation of

5 the plan; and

6 ‘‘(5) encouraging the operator to obtain technical

7 assistance, cost-sharing payments, or grants from

8 other Federal, State, local, or private sources.

9 ‘‘SEC. 1238G. ELIGIBLE LANDS.

10 ‘‘Agricultural land on which a structural practice or

11 land management practice, or both, shall be eligible for tech12 nical assistance, cost-sharing payments, or incentive pay13 ments under this chapter include—

14 ‘‘(1) agricultural land (including cropland,

15 rangeland, pasture, and other land on which crops or

16 livestock are produced) that the Secretary determines

17 poses a serious threat to soil, water, or related re18 sources by reason of the soil types, terrain, climatic,

19 soil, topographic, flood, or saline characteristics, or

20 other factors or natural hazards;

21 ‘‘(2) an area that is considered to be critical ag22 ricultural land on which either crop or livestock pro23 duction is carried out, as identified in a plan submit24 ted by the State under section 319 of the Federal

25 Water Pollution Control Act (33 U.S.C. 1329) as hav-
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1 ing priority problems that result from an agricultural

2 nonpoint source of pollution;

3 ‘‘(3) an area recommended by a State lead agen4 cy for protection of soil, water, and related resources,

5 as designated by a Governor of a State; and

6 ‘‘(4) land that is not located within a designated

7 or approved area, but that if permitted to continue to

8 be operated under existing management practices,

9 would defeat the purpose of the environmental quality

10 incentives program, as determined by the Secretary.

11 ‘‘SEC. 1238H. LIMITATIONS ON PAYMENTS.

12 ‘‘(a) PAYMENTS.—The total amount of cost-sharing

13 and incentive payments paid to a person under this chapter

14 may not exceed—

15 ‘‘(1) $10,000 for any fiscal year; or

16 ‘‘(2) $50,000 for any multiyear contract.

17 ‘‘(b) REGULATIONS.—The Secretary shall issue regula18 tions that are consistent with section 1001 for the purpose

19 of—

20 ‘‘(1) defining the term ‘person’ as used in sub21 section (a); and

22 ‘‘(2) prescribing such rules as the Secretary de23 termines necessary to ensure a fair and reasonable

24 application of the limitations contained in subsection

25 (a).’’.
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1 Subtitle C—Conservation Funding

2 SEC. 321. CONSERVATION FUNDING.

3 (a) IN GENERAL.—Subtitle E of title XII of the Food

4 Security Act of 1985 (16 U.S.C. 3841 et seq.) is amended

5 to read as follows:

6 ‘‘Subtitle E—Funding

7 ‘‘SEC. 1241. FUNDING.

8 ‘‘(a) MANDATORY EXPENSES.—For each of fiscal years

9 1996 through 2002, the Secretary shall use the funds of the

10 Commodity Credit Corporation to carry out the programs

11 authorized by—

12 ‘‘(1) subchapter B of chapter 1 of subtitle D (in13 cluding contracts extended by the Secretary pursuant

14 to section 1437 of the Food, Agriculture, Conserva15 tion, and Trade Act of 1990 (Public Law 101–624; 16

16 U.S.C. 3831 note));

17 ‘‘(2) subchapter C of chapter 1 of subtitle D; and

18 ‘‘(3) chapter 4 of subtitle D.

19 ‘‘(b) ENVIRONMENTAL QUALITY INCENTIVES PRO20 GRAM.—

21 ‘‘(1) IN GENERAL.—For each of fiscal years 1996

22 through 2002, $200,000,000 of the funds of the Com23 modity Credit Corporation shall be available for pro24 viding technical assistance, cost-sharing payments,

25 and incentive payments under the environmental
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1 quality incentives program under chapter 4 of subtitle

2 D.

3 ‘‘(2) LIVESTOCK PRODUCTION.—For each of fis4 cal years 1996 through 2002, 50 percent of the fund5 ing available for technical assistance, cost-sharing

6 payments, and incentive payments under the environ7 mental quality incentives program shall be targeted

8 at practices relating to livestock production.

9 ‘‘(c) ADVANCE APPROPRIATIONS TO CCC.—The Sec10 retary may use the funds of the Commodity Credit Corpora11 tion to carry out chapter 3 of subtitle D, except that the

12 Secretary may not use the funds of the Corporation unless

13 the Corporation has received funds to cover the expenditures

14 from appropriations made available to carry out chapter

15 3 of subtitle D.

16 ‘‘SEC. 1242. ADMINISTRATION.

17 ‘‘(a) PLANS.—The Secretary shall, to the extent prac18 ticable, avoid duplication in—

19 ‘‘(1) the conservation plans required for—

20 ‘‘(A) highly erodible land conservation

21 under subtitle B;

22 ‘‘(B) the conservation reserve program es23 tablished under subchapter B of chapter 1 of sub24 title D; and
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1 ‘‘(C) the wetlands reserve program estab2 lished under subchapter C of chapter 1 of subtitle

3 D; and

4 ‘‘(2) the environmental quality incentives pro5 gram established under chapter 4 of subtitle D.

6 ‘‘(b) ACREAGE LIMITATION.—

7 ‘‘(1) IN GENERAL.—The Secretary shall not en8 roll more than 25 percent of the cropland in any

9 county in the programs administered under the con10 servation reserve and wetlands reserve programs es11 tablished under subchapters B and C, respectively, of

12 chapter 1 of subtitle D. Not more than 10 percent of

13 the cropland in a county may be subject to an ease14 ment acquired under the subchapters.

15 ‘‘(2) EXCEPTION.—The Secretary may exceed the

16 limitations in paragraph (1) if the Secretary deter17 mines that—

18 ‘‘(A) the action would not adversely affect

19 the local economy of a county; and

20 ‘‘(B) operators in the county are having dif21 ficulties complying with conservation plans im22 plemented under section 1212.

23 ‘‘(3) SHELTERBELTS AND WINDBREAKS.—The

24 limitations established under this subsection shall not

25 apply to cropland that is subject to an easement
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1 under chapter 1 or 3 of subtitle D that is used for the

2 establishment of shelterbelts and windbreaks.

3 ‘‘(c) TENANT PROTECTION.—Except for a person who

4 is a tenant on land that is subject to a conservation reserve

5 contract that has been extended by the Secretary, the Sec6 retary shall provide adequate safeguards to protect the in7 terests of tenants and sharecroppers, including provision for

8 sharing, on a fair and equitable basis, in payments under

9 the programs established under subtitles B through D.

10 ‘‘(d) REGULATIONS.—Not later than 90 days after the

11 effective date of this subsection, the Secretary shall issue reg12 ulations to implement the conservation reserve and wet13 lands reserve programs established under chapter 1 of sub14 title D.’’.

15 Subtitle D—National Natural

16 Resources Conservation Foundation

17 SEC. 331. SHORT TITLE.

18 This subtitle may be cited as the ‘‘National Natural

19 Resources Conservation Foundation Act’’.

20 SEC. 332. DEFINITIONS.

21 In this subtitle (unless the context otherwise requires):

22 (1) BOARD.—The term ‘‘Board’’ means the

23 Board of Trustees established under section 334.

24 (2) DEPARTMENT.—The term ‘‘Department’’

25 means the United States Department of Agriculture.
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1 (3) FOUNDATION.—The term ‘‘Foundation’’

2 means the National Natural Resources Conservation

3 Foundation established by section 333(a).

4 (4) SECRETARY.—The term ‘‘Secretary’’ means

5 the Secretary of Agriculture.

6 SEC. 333. NATIONAL NATURAL RESOURCES CONSERVATION

7 FOUNDATION.

8 (a) ESTABLISHMENT.—A National Natural Resources

9 Conservation Foundation is established as a charitable and

10 nonprofit corporation for charitable, scientific, and edu11 cational purposes specified in subsection (b). The Founda12 tion is not an agency or instrumentality of the United

13 States.

14 (b) PURPOSES.—The purposes of the Foundation are

15 to—

16 (1) promote innovative solutions to the problems

17 associated with the conservation of natural resources

18 on private lands, particularly with respect to agri19 culture and soil and water conservation;

20 (2) promote voluntary partnerships between gov21 ernment and private interests in the conservation of

22 natural resources;

23 (3) conduct research and undertake educational

24 activities, conduct and support demonstration
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1 projects, and make grants to State and local agencies

2 and nonprofit organizations;

3 (4) provide such other leadership and support as

4 may be necessary to address conservation challenges,

5 such as the prevention of excessive soil erosion, en6 hancement of soil and water quality, and the protec7 tion of wetlands, wildlife habitat, and strategically

8 important farmland subject to urban conversion and

9 fragmentation;

10 (5) encourage, accept, and administer private

11 gifts of money and real and personal property for the

12 benefit of, or in connection with, the conservation and

13 related activities and services of the Department, par14 ticularly the Natural Resources Conservation Service;

15 (6) undertake, conduct, and encourage edu16 cational, technical, and other assistance, and other

17 activities, that support the conservation and related

18 programs administered by the Department (other

19 than activities carried out on National Forest System

20 lands), particularly the Natural Resources Conserva21 tion Service, except that the Foundation may not en22 force or administer a regulation of the Department;

23 and

24 (7) raise private funds to promote the purposes

25 of the Foundation.
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1 (c) LIMITATIONS AND CONFLICTS OF INTERESTS.—

2 (1) POLITICAL ACTIVITIES.—The Foundation

3 shall not participate or intervene in a political cam4 paign on behalf of any candidate for public office.

5 (2) CONFLICTS OF INTEREST.—No director, offi6 cer, or employee of the Foundation shall participate,

7 directly or indirectly, in the consideration or deter8 mination of any question before the Foundation af9 fecting—

10 (A) the financial interests of the director, of11 ficer, or employee; or

12 (B) the interests of any corporation, part13 nership, entity, organization, or other person in

14 which the director, officer, or employee—

15 (i) is an officer, director, or trustee; or

16 (ii) has any direct or indirect finan17 cial interest.

18 (3) LEGISLATION OR GOVERNMENT ACTION OR

19 POLICY.—No funds of the Foundation may be used in

20 any manner for the purpose of influencing legislation

21 or government action or policy.

22 (4) LITIGATION.—No funds of the Foundation

23 may be used to bring or join an action against the

24 United States or any State.
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1 SEC. 334. COMPOSITION AND OPERATION.

2 (a) COMPOSITION.—The Foundation shall be adminis3 tered by a Board of Trustees that shall consist of 9 voting

4 members, each of whom shall be a United States citizen and

5 not a Federal officer. The Board shall be composed of—

6 (1) individuals with expertise in agricultural

7 conservation policy matters;

8 (2) a representative of private sector organiza9 tions with a demonstrable interest in natural re10 sources conservation;

11 (3) a representative of statewide conservation or12 ganizations;

13 (4) a representative of soil and water conserva14 tion districts;

15 (5) a representative of organizations outside the

16 Federal Government that are dedicated to natural re17 sources conservation education; and

18 (6) a farmer or rancher.

19 (b) NONGOVERNMENTAL EMPLOYEES.—Service as a

20 member of the Board shall not constitute employment by,

21 or the holding of, an office of the United States for the pur22 poses of any Federal law.

23 (c) MEMBERSHIP.—

24 (1) INITIAL MEMBERS.—The Secretary shall ap25 point 9 persons who meet the criteria established

26 under subsection (a) as the initial members of the
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1 Board and designate 1 of the members as the initial

2 chairperson for a 2-year term.

3 (2) TERMS OF OFFICE.—

4 (A) IN GENERAL.—A member of the Board

5 shall serve for a term of 3 years, except that the

6 members appointed to the initial Board shall

7 serve, proportionately, for terms of 1, 2, and 3

8 years, as determined by the Secretary.

9 (B) LIMITATION ON TERMS.—No individual

10 may serve more than 2 consecutive 3-year terms

11 as a member.

12 (3) SUBSEQUENT MEMBERS.—The initial mem13 bers of the Board shall adopt procedures in the con14 stitution of the Foundation for the nomination and

15 selection of subsequent members of the Board. The

16 procedures shall require that each member, at a mini17 mum, meets the criteria established under subsection

18 (a) and shall provide for the selection of an individ19 ual, who is not a Federal officer or a member of the

20 Board.

21 (d) CHAIRPERSON.—After the appointment of an ini22 tial chairperson under subsection (c)(1), each succeeding

23 chairperson of the Board shall be elected by the members

24 of the Board for a 2-year term.
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1 (e) VACANCIES.—A vacancy on the Board shall be

2 filled by the Board not later than 60 days after the occur3 rence of the vacancy.

4 (f) COMPENSATION.—A member of the Board shall re5 ceive no compensation from the Foundation for the service

6 of the member on the Board.

7 (g) TRAVEL EXPENSES.—While away from the home

8 or regular place of business of a member of the Board in

9 the performance of services for the Board, the member shall

10 be allowed travel expenses paid by the Foundation, includ11 ing per diem in lieu of subsistence, at the same rate as a

12 person employed intermittently in the Government service

13 would be allowed under section 5703 of title 5, United

14 States Code.

15 SEC. 335. OFFICERS AND EMPLOYEES.

16 (a) IN GENERAL.—The Board may—

17 (1) appoint, hire, and discharge the officers and

18 employees of the Foundation, other than the appoint19 ment of the initial Executive Director of the Founda20 tion;

21 (2) adopt a constitution and bylaws for the

22 Foundation that are consistent with the purposes of

23 the Foundation and this subtitle; and

24 (3) undertake any other activities that may be

25 necessary to carry out this subtitle.
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1 (b) OFFICERS AND EMPLOYEES.—

2 (1) APPOINTMENT AND HIRING.—An officer or

3 employee of the Foundation—

4 (A) shall not, by virtue of the appointment

5 or employment of the officer or employee, be con6 sidered a Federal employee for any purpose, in7 cluding the provisions of title 5, United States

8 Code, governing appointments in the competitive

9 service, except that such an individual may par10 ticipate in the Federal employee retirement sys11 tem as if the individual were a Federal em12 ployee; and

13 (B) may not be paid by the Foundation a

14 salary in excess of $125,000 per year.

15 (2) EXECUTIVE DIRECTOR.—

16 (A) INITIAL DIRECTOR.—The Secretary

17 shall appoint an individual to serve as the ini18 tial Executive Director of the Foundation who

19 shall serve, at the direction of the Board, as the

20 chief operating officer of the Foundation.

21 (B) SUBSEQUENT DIRECTORS.—The Board

22 shall appoint each subsequent Executive Director

23 of the Foundation who shall serve, at the direc24 tion of the Board, as the chief operating officer

25 of the Foundation.
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1 (C) QUALIFICATIONS.—The Executive Di2 rector shall be knowledgeable and experienced in

3 matters relating to natural resources conserva4 tion.

5 SEC. 336. CORPORATE POWERS AND OBLIGATIONS OF THE

6 FOUNDATION.

7 (a) IN GENERAL.—The Foundation—

8 (1) may conduct business throughout the United

9 States and the territories and possessions of the Unit10 ed States; and

11 (2) shall at all times maintain a designated

12 agent who is authorized to accept service of process

13 for the Foundation, so that the serving of notice to,

14 or service of process on, the agent, or mailed to the

15 business address of the agent, shall be considered as

16 service on or notice to the Foundation.

17 (b) SEAL.—The Foundation shall have an official seal

18 selected by the Board that shall be judicially noticed.

19 (c) POWERS.—To carry out the purposes of the Foun20 dation under section 333(b), the Foundation shall have, in

21 addition to the powers otherwise provided under this sub22 title, the usual powers of a corporation, including the

23 power—

24 (1) to accept, receive, solicit, hold, administer,

25 and use any gift, devise, or bequest, either absolutely
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1 or in trust, of real or personal property or any in2 come from, or other interest in, the gift, devise, or be3 quest;

4 (2) to acquire by purchase or exchange any real

5 or personal property or interest in property, except

6 that funds provided under section 310 may not be

7 used to purchase an interest in real property;

8 (3) unless otherwise required by instrument of

9 transfer, to sell, donate, lease, invest, reinvest, retain,

10 or otherwise dispose of any property or income from

11 property;

12 (4) to borrow money from private sources and

13 issue bonds, debentures, or other debt instruments,

14 subject to section 339, except that the aggregate

15 amount of the borrowing and debt instruments out16 standing at any time may not exceed $1,000,000;

17 (5) to sue and be sued, and complain and defend

18 itself, in any court of competent jurisdiction, except

19 that a member of the Board shall not be personally

20 liable for an action in the performance of services for

21 the Board, except for gross negligence;

22 (6) to enter into a contract or other agreement

23 with an agency of State or local government, edu24 cational institution, or other private organization or

25 person and to make such payments as may be nec-
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1 essary to carry out the functions of the Foundation;

2 and

3 (7) to do any and all acts that are necessary to

4 carry out the purposes of the Foundation.

5 (d) INTEREST IN PROPERTY.—

6 (1) IN GENERAL.—The Foundation may acquire,

7 hold, and dispose of lands, waters, or other interests

8 in real property by donation, gift, devise, purchase, or

9 exchange.

10 (2) INTERESTS IN REAL PROPERTY.—For pur11 poses of this subtitle, an interest in real property

12 shall be treated, among other things, as including an

13 easement or other right for the preservation, conserva14 tion, protection, or enhancement of agricultural, nat15 ural, scenic, historic, scientific, educational, inspira16 tional, or recreational resources.

17 (3) GIFTS.—A gift, devise, or bequest may be ac18 cepted by the Foundation even though the gift, devise,

19 or bequest is encumbered, restricted, or subject to a

20 beneficial interest of a private person if any current

21 or future interest in the gift, devise, or bequest is for

22 the benefit of the Foundation.

23 SEC. 337. ADMINISTRATIVE SERVICES AND SUPPORT.

24 For each of fiscal years 1996 through 1998, the Sec25 retary may provide, without reimbursement, personnel, fa-
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1 cilities, and other administrative services of the Department

2 to the Foundation.

3 SEC. 338. AUDITS AND PETITION OF ATTORNEY GENERAL

4 FOR EQUITABLE RELIEF.

5 (a) AUDITS.—

6 (1) IN GENERAL.—The accounts of the Founda7 tion shall be audited in accordance with Public Law

8 88–504 (36 U.S.C. 1101 et seq.), including an audit

9 of lobbying and litigation activities carried out by the

10 Foundation.

11 (2) CONFORMING AMENDMENT.—The first section

12 of Public Law 88–504 (36 U.S.C. 1101) is amended

13 by adding at the end the following:

14 ‘‘(77) The National Natural Resources Conserva15 tion Foundation.’’.

16 (b) RELIEF WITH RESPECT TO CERTAIN FOUNDATION

17 ACTS OR FAILURE TO ACT.—The Attorney General may pe18 tition in the United States District Court for the District

19 of Columbia for such equitable relief as may be necessary

20 or appropriate, if the Foundation—

21 (1) engages in, or threatens to engage in, any

22 act, practice, or policy that is inconsistent with this

23 subtitle; or
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1 (2) refuses, fails, neglects, or threatens to refuse,

2 fail, or neglect, to discharge the obligations of the

3 Foundation under this subtitle.

4 SEC. 339. RELEASE FROM LIABILITY.

5 (a) IN GENERAL.—The United States shall not be lia6 ble for any debt, default, act, or omission of the Foundation.

7 The full faith and credit of the United States shall not ex8 tend to the Foundation.

9 (b) STATEMENT.—An obligation issued by the Founda10 tion, and a document offering an obligation, shall include

11 a prominent statement that the obligation is not directly

12 or indirectly guaranteed, in whole or in part, by the United

13 States (or an agency or instrumentality of the United

14 States).

15 SEC. 340. AUTHORIZATION OF APPROPRIATIONS.

16 There are authorized to be appropriated to the Depart17 ment to be made available to the Foundation $1,000,000

18 for each of fiscal years 1997 through 1999 to initially estab19 lish and carry out activities of the Foundation.

20 Subtitle E—Miscellaneous

21 SEC. 351. FLOOD RISK REDUCTION.

22 (a) IN GENERAL.—During fiscal years 1996 through

23 2002, the Secretary of Agriculture (referred to in this sec24 tion as the ‘‘Secretary’’) may enter into a contract with
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1 contract acreage under title I on a farm with land that

2 is frequently flooded.

3 (b) DUTIES OF PRODUCERS.—Under the terms of the

4 contract, with respect to acres that are subject to the con5 tract, the producer must agree to—

6 (1) the termination of any contract acreage;

7 (2) forgo loans for contract commodities, oilseeds,

8 and extra long staple cotton;

9 (3) not apply for crop insurance issued or rein10 sured by the Secretary;

11 (4) comply with applicable wetlands and high

12 erodible land conservation compliance requirements

13 established under title XII of the Food Security Act

14 of 1985 (16 U.S.C. 3801 et seq.);

15 (5) not apply for any conservation program pay16 ments from the Secretary;

17 (6) not apply for disaster program benefits pro18 vided by the Secretary; and

19 (7) refund the payments, with interest, issued

20 under the flood risk reduction contract to the Sec21 retary, if the producer violates the terms of the con22 tract or if the producer transfers the property to an23 other person who violates the contract.

24 (c) DUTIES OF SECRETARY.—In return for a flood risk

25 reduction contract entered into by a producer under this
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1 section, the Secretary shall agree to pay the producer for

2 the 1996 through 2002 crops not more than 95 percent of

3 the projected contract payments under title I, and not more

4 than 95 percent of the projected payments and subsidies

5 from the Federal Crop Insurance Corporation.

6 (d) COMMODITY CREDIT CORPORATION.—The Sec7 retary shall carry out the program authorized by this sec8 tion through the Commodity Credit Corporation.

9 SEC. 352. FORESTRY.

10 (a) FORESTRY INCENTIVES PROGRAM.—Section 4 of

11 the Cooperative Forestry Assistance Act of 1978 (16 U.S.C.

12 2103) is amended by striking subsection (k).

13 (b) OFFICE OF INTERNATIONAL FORESTRY.—Section

14 2405 of the Food, Agriculture, Conservation, and Trade Act

15 of 1990 (7 U.S.C. 6704) is amended by adding at the end

16 the following:

17 ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There

18 are authorized each fiscal year such sums as are necessary

19 to carry out this section.’’.

20 SEC. 353. STATE TECHNICAL COMMITTEES.

21 Section 1261(c) of the Food Security Act of 1985 (16

22 U.S.C. 3861(c)) is amended—

23 (1) in paragraph (7), by striking ‘‘and’’ at the

24 end;
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1 (2) in paragraph (8), by striking the period at

2 the end and inserting a semicolon; and

3 (3) by adding at the end the following:

4 ‘‘(9) agricultural producers;

5 ‘‘(10) other nonprofit organizations with demon6 strable expertise;

7 ‘‘(11) persons knowledgeable about the economic

8 and environmental impact of conservation techniques

9 and programs; and

10 ‘‘(12) agribusiness.

11 SEC. 354. CONSERVATION OF PRIVATE GRAZING LAND.

12 (a) FINDINGS.—Congress finds that—

13 (1) privately owned grazing land constitutes

nearly 1 14 ⁄2 of the non-Federal land of the United

15 States and is basic to the environmental, social, and

16 economic stability of rural communities;

17 (2) privately owned grazing land contains a

18 complex set of interactions among soil, water, air,

19 plants, and animals;

20 (3) grazing land constitutes the single largest

21 watershed cover type in the United States and con22 tributes significantly to the quality and quantity of

23 water available for all of the many uses of the land;

24 (4) private grazing land constitutes the most ex25 tensive wildlife habitat in the United States;
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1 (5) private grazing land can provide opportuni2 ties for improved nutrient management from land ap3 plication of animal manures and other by-product

4 nutrient resources;

5 (6) owners and managers of private grazing land

6 need to continue to recognize conservation problems

7 when the problems arise and receive sound technical

8 assistance to improve or conserve grazing land re9 sources to meet ecological and economic demands;

10 (7) new science and technology must continually

11 be made available in a practical manner so owners

12 and managers of private grazing land may make in13 formed decisions concerning vital grazing land re14 sources;

15 (8) agencies of the Department of Agriculture

16 with private grazing land responsibilities are the

17 agencies that have the expertise and experience to pro18 vide technical assistance, education, and research to

19 owners and managers of private grazing land for the

20 long-term productivity and ecological health of graz21 ing land;

22 (9) although competing demands on private

23 grazing land resources are greater than ever before,

24 assistance to private owners and managers of private

25 grazing land is currently limited and does not meet
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1 the demand and basic need for adequately sustaining

2 or enhancing the private grazing lands resources; and

3 (10) privately owned grazing land can be en4 hanced to provide many benefits to all Americans

5 through voluntary cooperation among owners and

6 managers of the land, local conservation districts, and

7 the agencies of the Department of Agriculture respon8 sible for providing assistance to owners and managers

9 of land and to conservation districts.

10 (b) PURPOSE.—It is the purpose of this section to au11 thorize the Secretary of Agriculture to provide a coordi12 nated technical, educational, and related assistance pro13 gram to conserve and enhance private grazing land re14 sources and provide related benefits to all citizens of the

15 United States by—

16 (1) establishing a coordinated and cooperative

17 Federal, State, and local grazing conservation pro18 gram for management of private grazing land;

19 (2) strengthening technical, educational, and re20 lated assistance programs that provide assistance to

21 owners and managers of private grazing land;

22 (3) conserving and improving wildlife habitat on

23 private grazing land;
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1 (4) conserving and improving fish habitat and

2 aquatic systems through grazing land conservation

3 treatment;

4 (5) protecting and improving water quality;

5 (6) improving the dependability and consistency

6 of water supplies;

7 (7) identifying and managing weed, noxious

8 weed, and brush encroachment problems on private

9 grazing land; and

10 (8) integrating conservation planning and man11 agement decisions by owners and managers of private

12 grazing land, on a voluntary basis.

13 (c) DEFINITIONS.—In this section:

14 (1) PRIVATE GRAZING LAND.—The term ‘‘private

15 grazing land’’ means privately owned, State-owned,

16 tribally-owned, and any other non-federally owned

17 rangeland, pastureland, grazed forest land, and hay

18 land.

19 (2) SECRETARY.—The term ‘‘Secretary’’ means

20 the Secretary of Agriculture, acting through the Natu21 ral Resources Conservation Service.

22 (d) PRIVATE GRAZING LAND CONSERVATION ASSIST23 ANCE.—

24 (1) ASSISTANCE TO GRAZING LANDOWNERS AND

25 OTHERS.—Subject to the availability of appropria-
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1 tions, the Secretary shall establish a voluntary pro2 gram to provide technical, educational, and related

3 assistance to owners and managers of private grazing

4 land and public agencies, through local conservation

5 districts, to enable the landowners, managers, and

6 public agencies to voluntarily carry out activities that

7 are consistent with this section, including—

8 (A) maintaining and improving private

9 grazing land and the multiple values and uses

10 that depend on private grazing land;

11 (B) implementing grazing land manage12 ment technologies;

13 (C) managing resources on private grazing

14 land, including—

15 (i) planning, managing, and treating

16 private grazing land resources;

17 (ii) ensuring the long-term sustain18 ability of private grazing land resources;

19 (iii) harvesting, processing, and mar20 keting private grazing land resources; and

21 (iv) identifying and managing weed,

22 noxious weed, and brush encroachment

23 problems;
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1 (D) protecting and improving the quality

2 and quantity of water yields from private graz3 ing land;

4 (E) maintaining and improving wildlife

5 and fish habitat on private grazing land;

6 (F) enhancing recreational opportunities on

7 private grazing land;

8 (G) maintaining and improving the aes9 thetic character of private grazing lands; and

10 (H) identifying the opportunities and en11 couraging the diversification of private grazing

12 land enterprises.

13 (2) PROGRAM ELEMENTS.—

14 (A) FUNDING.—The program under para15 graph (1) shall be funded through a specific line16 item in the annual appropriations for the Natu17 ral Resources Conservation Service.

18 (B) TECHNICAL ASSISTANCE AND EDU19 CATION.—Personnel of the Department of Agri20 culture trained in pasture and range manage21 ment shall be made available under the program

22 to deliver and coordinate technical assistance

23 and education to owners and managers of pri24 vate grazing land, at the request of the owners

25 and managers.
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1 (e) GRAZING TECHNICAL ASSISTANCE SELF-HELP.—

2 (1) FINDINGS.—Congress finds that—

3 (A) there is a severe lack of technical assist4 ance for grazing producers;

5 (B) the Federal budget precludes any sig6 nificant expansion, and may force a reduction

7 of, current levels of technical support; and

8 (C) farmers and ranchers have a history of

9 cooperatively working together to address com10 mon needs in the promotion of their products

11 and in the drainage of wet areas through drain12 age districts.

13 (2) ESTABLISHMENT OF GRAZING DEMONSTRA14 TION.—The Secretary may establish 2 grazing man15 agement demonstration districts at the recommenda16 tion of the Grazing Lands Conservation Initiative

17 Steering Committee.

18 (3) PROCEDURE.—

19 (A) PROPOSAL.—Within a reasonable time

20 after the submission of a request of an organiza21 tion of farmers or ranchers engaged in grazing,

22 the Secretary shall propose that a grazing man23 agement district be established.

24 (B) FUNDING.—The terms and conditions of

25 the funding and operation of the grazing man-
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1 agement district shall be proposed by the produc2 ers.

3 (C) APPROVAL.—The Secretary shall ap4 prove the proposal if the Secretary determines

5 that the proposal—

6 (i) is reasonable;

7 (ii) will promote sound grazing prac8 tices; and

9 (iii) contains provisions similar to the

10 provisions contained in the promotion or11 ders in effect on the effective date of this sec12 tion.

13 (D) AREA INCLUDED.—The area proposed

14 to be included in a grazing management district

15 shall be determined by the Secretary on the basis

16 of a petition by farmers or ranchers.

17 (E) AUTHORIZATION.—The Secretary may

18 use authority under the Agricultural Adjustment

19 Act (7 U.S.C. 601 et seq.), reenacted with

20 amendments by the Agricultural Marketing

21 Agreement Act of 1937, to operate, on a dem22 onstration basis, a grazing management district.

23 (F) ACTIVITIES.—The activities of a graz24 ing management district shall be scientifically

25 sound activities, as determined by the Secretary
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1 in consultation with a technical advisory com2 mittee composed of ranchers, farmers, and tech3 nical experts.

4 (f) AUTHORIZATION OF APPROPRIATIONS.—There are

5 authorized to be appropriated to carry out this section—

6 (1) $20,000,000 for fiscal year 1996;

7 (2) $40,000,000 for fiscal year 1997; and

8 (3) $60,000,000 for fiscal year 1998 and each

9 subsequent fiscal year.

10 SEC. 355. CONFORMING AMENDMENTS.

11 (a) AGRICULTURAL CONSERVATION PROGRAM.—

12 (1) ELIMINATION.—

13 (A) Section 8 of the Soil Conservation and

14 Domestic Allotment Act (16 U.S.C. 590h) is

15 amended—

16 (i) in subsection (b)—

17 (I) by striking paragraphs (1)

18 through (4) and inserting the follow19 ing:

20 ‘‘(1) ENVIRONMENTAL QUALITY INCENTIVES PRO21 GRAM.—The Secretary shall provide technical assist22 ance, cost share payments, and incentive payments to

23 operators through the environmental quality incen24 tives program in accordance with chapter 2 of subtitle
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1 D of the Food Security Act of 1985 (16 U.S.C. 3838

2 et seq.).’’; and

3 (II) by striking paragraphs (6)

4 through (8); and

5 (ii) by striking subsections (d), (e),

6 and (f).

7 (B) The first sentence of section 11 of the

8 Soil Conservation and Domestic Allotment Act

9 (16 U.S.C. 590k) is amended by striking ‘‘per10 formance: Provided further,’’ and all that follows

11 through ‘‘or other law’’ and inserting ‘‘perform12 ance’’.

13 (C) Section 14 of the Act (16 U.S.C. 590n)

14 is amended—

15 (i) in the first sentence, by striking ‘‘or

16 8’’; and

17 (ii) by striking the second sentence.

18 (D) Section 15 of the Act (16 U.S.C. 590o)

19 is amended—

20 (i) in the first undesignated para21 graph—

22 (I) in the first sentence, by strik23 ing ‘‘sections 7 and 8’’ and inserting

24 ‘‘section 7’’; and
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1 (II) by striking the third sentence;

2 and

3 (ii) by striking the second undesig4 nated paragraph.

5 (2) CONFORMING AMENDMENTS.—

6 (A) Paragraph (1) of the last proviso of the

7 matter under the heading ‘‘CONSERVATION RE8 SERVE PROGRAM’’ under the heading ‘‘SOIL

9 BANK PROGRAMS’’ of title I of the Department of

10 Agriculture and Farm Credit Administration

11 Appropriation Act, 1959 (72 Stat. 195; 7 U.S.C.

12 1831a) is amended by striking ‘‘Agricultural

13 Conservation Program’’ and inserting ‘‘environ14 mental quality incentives program established

15 under chapter 2 of subtitle D of the Food Secu16 rity Act of 1985 (16 U.S.C. 3838 et seq.)’’.

17 (B) Section 4 of the Cooperative Forestry

18 Assistance Act of 1978 (16 U.S.C. 2103) is

19 amended by striking ‘‘as added by the Agri20 culture and Consumer Protection Act of 1973’’

21 each place it appears in subsections (d) and (i)

22 and inserting ‘‘as in effect before the amendment

23 made by section 355(a)(1) of the Agricultural

24 Reform and Improvement Act of 1996’’.
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1 (C) Section 226(b)(4) of the Department of

2 Agriculture Reorganization Act of 1994 (7

3 U.S.C. 6932(b)(4)) is amended by striking ‘‘and

4 the agricultural conservation program under the

5 Soil Conservation and Domestic Allotment Act

6 (16 U.S.C. 590g et seq.)’’.

7 (D) Section 246(b)(8) of the Department of

8 Agriculture Reorganization Act of 1994 (7

9 U.S.C. 6962(b)(8)) is amended by striking ‘‘and

10 the agricultural conservation program under the

11 Soil Conservation and Domestic Allotment Act

12 (16 U.S.C. 590g et seq.)’’.

13 (E) Section 1271(c)(3)(C) of the Food, Agri14 culture, Conservation, and Trade Act of 1990 (16

15 U.S.C. 2106a(c)(3)(C)) is amended by striking

16 ‘‘Agricultural Conservation Program established

17 under section 16(b) of the Soil Conservation and

18 Domestic Allotment Act (16 U.S.C. 590h, 590l,

19 or 590p)’’ and inserting ‘‘environmental quality

20 incentives program established under chapter 2

21 of subtitle D of the Food Security Act of 1985

22 (16 U.S.C. 3838 et seq.)’’.

23 (F) Section 126(a)(5) of the Internal Reve24 nue Code of 1986 is amended to read as follows:
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1 ‘‘(5) The environmental quality incentives pro2 gram established under chapter 2 of subtitle D of the

3 Food Security Act of 1985 (16 U.S.C. 3838 et seq.).’’.

4 (G) Section 304(a) of the Lake Champlain

5 Special Designation Act of 1990 (Public Law

6 101–596; 33 U.S.C. 1270 note) is amended—

7 (i) in the subsection heading, by strik8 ing ‘‘SPECIAL PROJECT AREA UNDER THE

9 AGRICULTURAL CONSERVATION PROGRAM’’

10 and inserting ‘‘A PRIORITY AREA UNDER

11 THE ENVIRONMENTAL QUALITY INCENTIVES

12 PROGRAM’’; and

13 (ii) in paragraph (1), by striking ‘‘spe14 cial project area under the Agricultural

15 Conservation Program established under

16 section 8(b) of the Soil Conservation and

17 Domestic Allotment Act (16 U.S.C.

18 590h(b))’’ and inserting ‘‘priority area

19 under the environmental quality incentives

20 program established under chapter 2 of sub21 title D of the Food Security Act of 1985 (16

22 U.S.C. 3838 et seq.)’’.

23 (H) Section 6 of the Department of Agri24 culture Organic Act of 1956 (70 Stat. 1033) is

25 amended by striking subsection (b).
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1 (b) GREAT PLAINS CONSERVATION PROGRAM.—

2 (1) ELIMINATION.—Section 16 of the Soil Con3 servation and Domestic Allotment Act (16 U.S.C.

4 590p) is repealed.

5 (2) CONFORMING AMENDMENTS.—

6 (A) The Agricultural Adjustment Act of

7 1938 is amended by striking ‘‘Great Plains pro8 gram’’ each place it appears in sections 344(f)(8)

9 and 377 (7 U.S.C. 1344(f)(8) and 1377) and in10 serting ‘‘environmental quality incentives pro11 gram established under chapter 2 of subtitle D of

12 the Food Security Act of 1985 (16 U.S.C. 3838

13 et seq.)’’.

14 (B) Section 246(b) of the Department of Ag15 riculture Reorganization Act of 1994 (7 U.S.C.

16 6962(b)) is amended by striking paragraph (2).

17 (C) Section 126(a) of the Internal Revenue

18 Code of 1986 is amended—

19 (i) by striking paragraph (6); and

20 (ii) by redesignating paragraphs (7)

21 through (10) as paragraphs (6) through (9),

22 respectively.

23 (c) COLORADO RIVER BASIN SALINITY CONTROL PRO24 GRAM.—
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1 (1) ELIMINATION.—Section 202 of the Colorado

2 River Basin Salinity Control Act (43 U.S.C. 1592) is

3 amended by striking subsection (c).

4 (2) CONFORMING AMENDMENT.—Section 246(b)

5 of the Department of Agriculture Reorganization Act

6 of 1994 (7 U.S.C. 6962(b)) is amended by striking

7 paragraph (6).

8 (d) RURAL ENVIRONMENTAL CONSERVATION PRO9 GRAM.—

10 (1) ELIMINATION.—Title X of the Agricultural

11 Act of 1970 (16 U.S.C. 1501 et seq.) is repealed.

12 (2) CONFORMING AMENDMENTS.—Section 246(b)

13 of the Department of Agriculture Reorganization Act

14 of 1994 (7 U.S.C. 6962(b)) is amended—

15 (A) by striking paragraph (1); and

16 (B) by redesignating paragraphs (2)

17 through (8) as paragraphs (1) through (7), re18 spectively.

19 (e) OTHER CONSERVATION PROVISIONS.—Subtitle F of

20 title XII of the Food Security Act of 1985 (16 U.S.C. 2005a

21 and 2101 note) is repealed.

22 (f) COMMODITY CREDIT CORPORATION CHARTER

23 ACT.—Section 5(g) of the Commodity Credit Corporation

24 Charter Act (15 U.S.C. 714c(g)) is amended to read as fol25 lows:
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1 ‘‘(g) Carry out conservation functions and programs.’’.

2 (g) RESOURCE CONSERVATION.—

3 (1) ELIMINATION.—Subtitles A, B, D, E, F, G,

4 and J of title XV of the Agriculture and Food Act of

5 1981 (95 Stat. 1328; 16 U.S.C. 3401 et seq.) are re6 pealed.

7 (2) CONFORMING AMENDMENT.—Section 739 of

8 the Agriculture, Rural Development, Food and Drug

9 Administration, and Related Agencies Appropriations

10 Act, 1982 (7 U.S.C. 2272a), is repealed.

11 (h) ENVIRONMENTAL EASEMENT PROGRAM.—Section

12 1239(a) of the Food Security Act of 1985 (16 U.S.C.

13 3839(a)) is amended by striking ‘‘1991 through 1995’’ and

14 inserting ‘‘1996 through 2002’’.

15 (i) RESOURCE CONSERVATION AND DEVELOPMENT

16 PROGRAM.—Section 1538 of the Agriculture and Food Act

17 of 1981 (16 U.S.C. 3461) is amended by striking ‘‘1991

18 through 1995’’ and inserting ‘‘1996 through 2002’’.

19 (j) TECHNICAL AMENDMENT.—The first sentence of the

20 matter under the heading ‘‘Commodity Credit Corporation’’

21 of Public Law 99–263 (100 Stat. 59; 16 U.S.C. 3841 note)

22 is amended by striking ‘‘: Provided further,’’ and all that

23 follows through ‘‘Acts’’.
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1 (k) AGRICULTURAL WATER QUALITY INCENTIVES PRO2 GRAM.—Chapter 2 of subtitle D of title XII of the Food Se3 curity Act of 1985 (16 U.S.C. 3838 et seq.) is repealed.

4 SEC. 356. WATER BANK PROGRAM.

5 Section 1230 of the Food Security Act of 1985 (16

6 U.S.C. 3830) is amended by adding at the end the following:

7 ‘‘(d) WATER BANK PROGRAM.—For purposes of this

8 Act, acreage enrolled, prior to the date of enactment of this

9 subsection, in the water bank program authorized by the

10 Water Bank Act (16 U.S.C. 1301 et seq.) shall be considered

11 to have been enrolled in the conservation reserve program

12 on the date the acreage was enrolled in the water bank pro13 gram. Payments shall continue at the existing water bank

14 rates.’’.

15 SEC. 357. FLOOD WATER RETENTION PILOT PROJECTS.

16 Section 16 of the Soil Conservation and Domestic Al17 lotment Act (16 U.S.C. 590p) is amended by adding at the

18 end the following:

19 ‘‘(l) FLOOD WATER RETENTION PILOT PROJECTS.—

20 ‘‘(1) IN GENERAL.—In cooperation with States,

21 the Secretary shall carry out at least 1 but not more

22 than 2 pilot projects to create and restore natural

23 water retention areas to control storm water and

24 snow melt runoff within closed drainage systems.
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1 ‘‘(2) PRACTICES.—To carry out paragraph (1),

2 the Secretary shall provide cost-sharing and technical

3 assistance for the establishment of nonstructural land4 scape management practices, including agricultural

5 tillage practices and restoration, enhancement, and

6 creation of wetland characteristics.

7 ‘‘(3) FUNDING.—

8 ‘‘(A) LIMITATION.—The funding used by the

9 Secretary to carry out this subsection shall not

10 exceed $10,000,000 per project.

11 ‘‘(B) USE OF COMMODITY CREDIT CORPORA12 TION.—The Secretary shall use the funds, facili13 ties, and authorities of the Commodity Credit

14 Corporation to carry out this subsection.

15 ‘‘(4) ADDITIONAL PILOT PROJECTS.—

16 ‘‘(A) EVALUATION.—Not later than 2 years

17 after a pilot project is implemented, the Sec18 retary shall evaluate the extent to which the

19 project has reduced or may reduce Federal out20 lays for emergency spending and unplanned in21 frastructure maintenance by an amount that ex22 ceeds the Federal cost of the project.

23 ‘‘(B) ADDITIONAL PROJECTS.—If the Sec24 retary determines that pilot projects carried out

25 under this subsection have reduced or may re-
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1 duce Federal outlays as described in subpara2 graph (A), the Secretary may carry out, in ac3 cordance with this subsection, pilot projects in

4 addition to the projects authorized under para5 graph (1).’’.

6 SEC. 358. WETLAND CONSERVATION EXEMPTION.

7 Section 1222(b)(1) of the Food Security Act of 1985

8 (16 U.S.C. 3822(b)(1)) is amended—

9 (1) in subparagraph (C), by striking ‘‘or’’ at the

10 end; and

11 (2) by adding at the end the following:

12 ‘‘(E) converted wetland, if—

13 ‘‘(i) the extent of the conversion is lim14 ited to the reversion to conditions that will

15 be at least equivalent to the wetland func16 tions and values that existed prior to imple17 mentation of a voluntary wetland restora18 tion, enhancement, or creation action;

19 ‘‘(ii) technical determinations of the

20 prior site conditions and the restoration,

21 enhancement, or creation action have been

22 adequately documented in a plan approved

23 by the Natural Resources Conservation

24 Service prior to implementation; and
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1 ‘‘(iii) the conversion action proposed

2 by the private landowner is approved by the

3 Natural Resources Conservation Service

4 prior to implementation; or’’.

5 SEC. 359. FLOODPLAIN EASEMENTS.

6 Section 403 of the Agricultural Credit Act of 1978 (16

7 U.S.C. 2203) is amended by inserting ‘‘, including the pur8 chase of floodplain easements,’’ after ‘‘emergency measures’’.

9 SEC. 360. RESOURCE CONSERVATION AND DEVELOPMENT

10 PROGRAM REAUTHORIZATION.

11 Section 1538 of the Agriculture and Food Act of 1981

12 (16 U.S.C. 3461) is amended by striking ‘‘1991 through

13 1995’’ and inserting ‘‘1996 through 2001’’.

14 SEC. 361. CONSERVATION RESERVE NEW ACREAGE.

15 Section 1231(a) of the Food Security Act of 1985 (16

16 U.S.C. 3831(a)) is amended by adding at the end the follow17 ing: ‘‘The Secretary may enter into 1 or more new contracts

18 to enroll acreage in a quantity equal to the quantity of acre19 age covered by any contract that terminates after the date

20 of enactment of the Agricultural Market Transition Act.’’.

21 SEC. 362. REPEAL OF REPORT REQUIREMENT.

22 Section 1342 of title 44, United States Code, is re23 pealed.
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1 SEC. 363. WATERSHED PROTECTION AND FLOOD PREVEN2 TION ACT AMENDMENTS.

3 (a) DECLARATION OF POLICY.—The first section of the

4 Watershed Protection and Flood Prevention Act (16 U.S.C.

5 1001) is amended to read as follows:

6 ‘‘SECTION 1. DECLARATION OF POLICY.

7 ‘‘Erosion, flooding, sedimentation, and loss of natural

8 habitats in the watersheds and waterways of the United

9 States cause loss of life, damage to property, and a reduc10 tion in the quality of environment and life of citizens. It

11 is therefore the sense of Congress that the Federal Govern12 ment should join with States and their political subdivi13 sions, public agencies, conservation districts, flood preven14 tion or control districts, local citizens organizations, and

15 Indian tribes for the purpose of conserving, protecting, re16 storing, and improving the land and water resources of the

17 United States and the quality of the environment and life

18 for watershed residents across the United States.’’.

19 (b) DEFINITIONS.—

20 (1) WORKS OF IMPROVEMENT.—Section 2 of the

21 Act (16 U.S.C. 1002) is amended, with respect to the

22 term ‘‘works of improvement’’—

23 (A) in paragraph (1), by inserting ‘‘, non24 structural,’’ after ‘‘structural’’;

25 (B) in paragraph (2), by striking ‘‘or’’ at

26 the end;
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1 (C) by redesignating paragraph (3) as

2 paragraph (11);

3 (D) by inserting after paragraph (2) the fol4 lowing new paragraphs:

5 ‘‘(3) a land treatment or other nonstructural

6 practice, including the acquisition of easements or

7 real property rights, to meet multiple watershed

8 needs,

9 ‘‘(4) the restoration and monitoring of the chem10 ical, biological, and physical structure, diversity, and

11 functions of waterways and their associated ecological

12 systems,

13 ‘‘(5) the restoration or establishment of wetland

14 and riparian environments as part of a multi-objec15 tive management system that provides floodwater or

16 storm water storage, detention, and attenuation, nu17 trient filtering, fish and wildlife habitat, and en18 hanced biological diversity,

19 ‘‘(6) the restoration of steam channel forms,

20 functions, and diversity using the principles of

21 biotechnical slope stabilization to reestablish a mean22 dering, bankfull flow channels, riparian vegetation,

23 and floodplains,

24 ‘‘(7) the establishment and acquisition of multi25 objective riparian and adjacent flood prone lands, in-
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1 cluding greenways, for sediment storage and flood2 water storage,

3 ‘‘(8) the protection, restoration, enhancement

4 and monitoring of surface and groundwater quality,

5 including measures to improve the quality of water

6 emanating from agricultural lands and facilities,

7 ‘‘(9) the provision of water supply and munici8 pal and industrial water supply for rural commu9 nities having a population of less than 55,000, ac10 cording to the most recent decennial census of the

11 United States,

12 ‘‘(10) outreach to and organization of local citi13 zen organizations to participate in project design and

14 implementation, and the training of project volun15 teers and participants in restoration and monitoring

16 techniques, or’’; and

17 (E) in paragraph (11) (as so redesig18 nated)—

19 (i) by inserting in the first sentence

20 after ‘‘proper utilization of land’’ the follow21 ing: ‘‘, water, and related resources’’; and

22 (ii) by striking the sentence that man23 dates that 20 percent of total project benefits

24 be directly related to agriculture.
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1 (2) LOCAL ORGANIZATION.—Such section is fur2 ther amended, with respect to the term ‘‘local organi3 zation’’, by adding at the end the following new sen4 tence: ‘‘The term includes any nonprofit organization

5 (defined as having tax exempt status under section

6 501(c)(3) of the Internal Revenue Code of 1986) that

7 has authority to carry out and maintain works of im8 provement or is developing and implementing a work

9 of improvement in partnership with another local or10 ganization that has such authority.’’.

11 (3) WATERWAY.—Such section is further amend12 ed by adding at the end the following new definition:

13 ‘‘WATERWAY.—The term ‘waterway’ means, on public

14 or private land, any natural, degraded, seasonal, or created

15 wetland on public or private land, including rivers,

16 streams, riparian areas, marshes, ponds, bogs, mudflats,

17 lakes, and estuaries. The term includes any natural or man18 made watercourse which is culverted, channelized, or vegeta19 tively cleared, including canals, irrigation ditches, drainage

20 wages, and navigation, industrial, flood control and water

21 supply channels.’’.

22 (c) ASSISTANCE TO LOCAL ORGANIZATIONS.—Section

23 3 of the Act (16 U.S.C. 1003) is amended—
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1 (1) in paragraph (1), by inserting after ‘‘(1)’’

2 the following ‘‘to provide technical assistance to help

3 local organizations’’;

4 (2) in paragraph (2)—

5 (A) by inserting after ‘‘(2)’’ the following:

6 ‘‘to provide technical assistance to help local or7 ganizations’’; and

8 (B) by striking ‘‘engineering’’ and inserting

9 ‘‘technical and scientific’’; and

10 (3) by striking paragraph (3) and inserting the

11 following new paragraph:

12 ‘‘(3) to make allocations of costs to the project or

13 project components to determine whether the total of

14 all environmental, social, and monetary benefits ex15 ceed costs;’’.

16 (d) COST SHARE ASSISTANCE.—

17 (1) AMOUNT OF ASSISTANCE.—Section 3A of the

18 Act (16 U.S.C. 1003a) is amended by striking sub19 section (b) and inserting the following:

20 ‘‘(b) NONSTRUCTURAL PRACTICES.—Notwithstanding

21 any other provision of this Act, Federal cost share assist22 ance to local organizations for the planning and implemen23 tation of nonstructural works of improvement may be pro24 vided using funds appropriated for the purposes of this Act
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1 for an amount not exceeding 75 percent of the total installa2 tion costs.

3 ‘‘(c) STRUCTURAL PRACTICES.—Notwithstanding any

4 other provision of this Act, Federal cost share assistance to

5 local organizations for the planning and implementation

6 of structural works of improvement may be provided using

7 funds appropriated for the purposes of this Act for 50 per8 cent of the total cost, including the cost of mitigating dam9 age to fish and wildlife habitat and the value of any land

10 or interests in land acquired for the work of improvement.

11 ‘‘(d) SPECIAL RULE FOR LIMITED RESOURCE COMMU12 NITIES.—Notwithstanding any other provision of this Act,

13 the Secretary may provide cost share assistance to a limited

14 resource community for any works of improvement, using

15 funds appropriated for the purposes of this Act, for an

16 amount not to exceed 90 percent of the total cost.

17 ‘‘(e) TREATMENT OF OTHER FEDERAL FUNDS.—Not

18 more than 50 percent of the non-Federal cost share may

19 be satisfied using funds from other Federal agencies.’’.

20 (2) CONDITIONS ON ASSISTANCE.—Section 4(1)

21 of the Act (16 U.S.C. 1004(1)) is amended by striking

22 ‘‘, without cost to the Federal Government from funds

23 appropriated for the purposes of this Act,’’.

24 (e) BENEFIT COST ANALYSIS.—Section 5(1) of the Act

25 (16 U.S.C. 1005(1)) is amended by striking ‘‘the benefits’’
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1 and inserting ‘‘the total benefits, including environmental,

2 social, and monetary benefits,’’.

3 (f) PROJECT PRIORITIZATION.—The Watershed Protec4 tion and Flood Prevention Act is amended by inserting

5 after section 5 (16 U.S.C. 1005) the following new section:

6 ‘‘SEC. 5A. FUNDING PRIORITIES.

7 ‘‘In making funding decisions under this Act, the Sec8 retary shall give priority to projects with one or more of

9 the following attributes:

10 ‘‘(1) Projects providing significant improvements

11 in ecological values and functions in the project area.

12 ‘‘(2) Projects that enhance the long-term health of

13 local economies or generate job or job training oppor14 tunities for local residents, including Youth Conserva15 tion and Service Corps participants and displaced re16 source harvesters.

17 ‘‘(3) Projects that provide protection to human

18 health, safety, and property.

19 ‘‘(4) Projects that directly benefit economically

20 disadvantaged communities and enhance participa21 tion by local residents of such communities.

22 ‘‘(5) Projects that restore or enhance fish and

23 wildlife species of commercial, recreational, subsist24 ence or scientific concern.
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1 ‘‘(6) Projects or components of projects that can

2 be planned, designed, and implemented within two

3 years.’’.

4 (g) TRANSFER OF FUNDS.—The Watershed Protection

5 and Flood Prevention Act (16 U.S.C. 1001–1010) is amend6 ed by adding at the end the following new section:

7 ‘‘SEC. 14. TRANSFERS OF FUNDS.

8 ‘‘The Secretary may accept transfers of funds from

9 other Federal departments and agencies in order to carry

10 out projects under this Act.’’.

11 SEC. 364. ABANDONMENT OF CONVERTED WETLANDS.

12 Section 1222 of the Food Security Act of 1985 (16

13 U.S.C. 3822) is amended by adding at the end the following:

14 ‘‘(k) ABANDONMENT OF CONVERTED WETLANDS.—The

15 Secretary shall not determine that a prior converted or

16 cropped wetland is abandoned, and therefore that the wet17 land is subject to this subtitle, on the basis that a producer

18 has not planted an agricultural crop on the prior converted

19 or cropped wetland after the date of enactment of this sub20 section, so long as any use of the wetland thereafter is lim21 ited to agricultural purposes.’’.
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1 TITLE IV—NUTRITION

2 ASSISTANCE

3 SEC. 401. FOOD STAMP PROGRAM.

4 (a) DISQUALIFICATION OF A STORE OR CONCERN.—

5 Section 12 of the Food Stamp Act of 1977 (7 U.S.C. 2021)

6 is amended—

7 (1) by striking the section heading;

8 (2) by striking ‘‘SEC. 12. (a) Any’’ and inserting

9 the following:

10 ‘‘SEC. 12. CIVIL MONEY PENALTIES AND DISQUALIFICATION

11 OF RETAIL FOOD STORES AND WHOLESALE

12 FOOD CONCERNS.

13 ‘‘(a) DISQUALIFICATION.—

14 ‘‘(1) IN GENERAL.—An’’;

15 (3) by adding at the end of subsection (a) the fol16 lowing:

17 ‘‘(2) EMPLOYING CERTAIN PERSONS.—A retail

18 food store or wholesale food concern shall be disquali19 fied from participation in the food stamp program if

20 the store or concern knowingly employs a person who

21 has been found by the Secretary, or a Federal, State,

22 or local court, to have, within the preceding 3-year

23 period—

24 ‘‘(A) engaged in the trading of a firearm,

25 ammunition, an explosive, or a controlled sub-
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1 stance (as defined in section 102 of the Con2 trolled Substances Act (21 U.S.C. 802)) for a

3 coupon; or

4 ‘‘(B) committed any act that constitutes a

5 violation of this Act or a State law relating to

6 using, presenting, transferring, acquiring, receiv7 ing, or possessing a coupon, authorization card,

8 or access device.’’; and

9 (4) in subsection (b)(3)(B), by striking ‘‘neither

10 the ownership nor management of the store or food

11 concern was aware’’ and inserting ‘‘the ownership of

12 the store or food concern was not aware’’.

13 (b) EMPLOYMENT AND TRAINING.—Section 16(h)(1) of

14 the Food Stamp Act of 1977 (7 U.S.C. 2025(h)(1)) is

15 amended by striking ‘‘1995’’ each place it appears and in16 serting ‘‘2002’’.

17 (c) AUTHORIZATION OF PILOT PROJECTS.—The last

18 sentence of section 17(b)(1)(A) of the Food Stamp Act of

19 1977 (7 U.S.C. 2026(b)(1)(A)) is amended by striking

20 ‘‘1995’’ and inserting ‘‘2002’’.

21 (d) OUTREACH DEMONSTRATION PROJECTS.—The

22 first sentence of section 17(j)(1)(A) of the Food Stamp Act

23 of 1977 (7 U.S.C. 2026(j)(1)(A)) is amended by striking

24 ‘‘1995’’ and inserting ‘‘2002’’.
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1 (e) AUTHORIZATION FOR APPROPRIATIONS.—The first

2 sentence of section 18(a)(1) of the Food Stamp Act of 1977

3 (7 U.S.C. 2027(a)(1)) is amended by striking ‘‘1995’’ and

4 inserting ‘‘2002’’.

5 (f) REAUTHORIZATION OF PUERTO RICO NUTRITION

6 ASSISTANCE PROGRAM.—The first sentence of section

7 19(a)(1)(A) of the Food Stamp Act of 1977 (7 U.S.C.

8 2028(a)(1)(A)) is amended by striking ‘‘$974,000,000’’ and

9 all that follows through ‘‘fiscal year 1995’’ and inserting

10 ‘‘$1,143,000,000 for fiscal year 1996, $1,174,000,000 for fis11 cal year 1997, $1,204,000,000 for fiscal year 1998,

12 $1,236,000,000 for fiscal year 1999, $1,268,000,000 for fis13 cal year 2000, $1,301,000,000 for fiscal year 2001, and

14 $1,335,000,000 for fiscal year 2002’’.

15 (g) AMERICAN SAMOA.—The Food Stamp Act of 1977

16 (7 U.S.C. 2011 et seq.) is amended by adding at the end

17 the following:

18 ‘‘SEC. 24. TERRITORY OF AMERICAN SAMOA.

19 ‘‘From amounts made available to carry out this Act,

20 the Secretary may pay to the Territory of American Samoa

21 not more than $5,300,000 for each of fiscal years 1996

22 through 2002 to finance 100 percent of the expenditures for

23 the fiscal year for a nutrition assistance program extended

24 under section 601(c) of Public Law 96–597 (48 U.S.C.

25 1469d(c)).’’.
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1 SEC. 402. COMMODITY DISTRIBUTION PROGRAM; COMMOD2 ITY SUPPLEMENTAL FOOD PROGRAM.

3 (a) REAUTHORIZATION.—The first sentence of section

4 4(a) of the Agriculture and Consumer Protection Act of

5 1973 (Public Law 93–86; 7 U.S.C. 612c note) is amended

6 by striking ‘‘1995’’ and inserting ‘‘2002’’.

7 (b) FUNDING.—Section 5 of the Agriculture and

8 Consumer Protection Act of 1973 (Public Law 93–86; 7

9 U.S.C. 612c note) is amended—

10 (1) in subsection (a)(2), by striking ‘‘1995’’ and

11 inserting ‘‘2002’’; and

12 (2) in subsection (d)(2), by striking ‘‘1995’’ and

13 inserting ‘‘2002’’.

14 (c) CARRIED-OVER FUNDS.—20 percent of any com15 modity supplemental food program funds carried over

16 under section 5 of the Agriculture and Consumer Protection

17 Act of 1973 (Public Law 93–86; 7 U.S.C. 612c note) shall

18 be available for administrative expenses of the program.

19 SEC. 403. EMERGENCY FOOD ASSISTANCE PROGRAM.

20 (a) REAUTHORIZATION.—The first sentence of section

21 204(a)(1) of the Emergency Food Assistance Act of 1983

22 (Public Law 98–8; 7 U.S.C. 612c note) is amended by strik23 ing ‘‘1995’’ and inserting ‘‘2002’’.

24 (b) PROGRAM TERMINATION.—Section 212 of the

25 Emergency Food Assistance Act of 1983 (Public Law 98–
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1 8; 7 U.S.C. 612c note) is amended by striking ‘‘1995’’ and

2 inserting ‘‘2002’’.

3 (c) REQUIRED PURCHASES OF COMMODITIES.—Sec4 tion 214 of the Emergency Food Assistance Act of 1983

5 (Public Law 98–8; 7 U.S.C. 612c note) is amended—

6 (1) in the first sentence of subsection (a), by

7 striking ‘‘1995’’ and inserting ‘‘2002’’; and

8 (2) in subsection (e), by striking ‘‘1995’’ each

9 place it appears and inserting ‘‘2002’’.

10 SEC. 404. SOUP KITCHENS PROGRAM.

11 Section 110 of the Hunger Prevention Act of 1988

12 (Public Law 100–435; 7 U.S.C. 612c note) is amended—

13 (1) in the first sentence of subsection (a), by

14 striking ‘‘1995’’ and inserting ‘‘2002’’; and

15 (2) in subsection (c)(2)—

16 (A) in the paragraph heading, by striking

17 ‘‘1995’’ and inserting ‘‘2002’’; and

18 (B) by striking ‘‘1995’’ each place it ap19 pears and inserting ‘‘2002’’.

20 SEC. 405. NATIONAL COMMODITY PROCESSING.

21 The first sentence of section 1114(a)(2)(A) of the Agri22 culture and Food Act of 1981 (7 U.S.C. 1431e(2)(A)) is

23 amended by striking ‘‘1995’’ and inserting ‘‘2002’’.
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1 TITLE V—MISCELLANEOUS

2 Subtitle A—General Miscellaneous

3 Provisions

4 SEC. 501. FUND FOR DAIRY PRODUCERS TO PAY FOR NUTRI5 ENT MANAGEMENT.

6 Section 8c(5) of the Agricultural Adjustment Act (7

7 U.S.C. 608c(5)), reenacted with amendments by the Agri8 cultural Marketing Agreement Act of 1937, is amended—

9 (1) in paragraph (A), by adding at the end the

10 following: ‘‘The minimum price for milk of the high11 est classification in any order (other than an order

12 amended under paragraph (M)) may not be higher

13 than the minimum price required under this para14 graph.’’; and

15 (2) by adding at the end the following:

16 ‘‘(M) SAFE HARBOR.—

17 ‘‘(i) IN GENERAL.—Providing that

18 each order may be amended such that not

19 more than $.10 per hundredweight of milk

20 of the highest use classification may be

21 added to the minimum applicable price to

22 be set aside in a fund called the ‘Safe Har23 bor Fund Account’ (referred to in this para24 graph as the ‘Account’).

25 ‘‘(ii) ADMINISTRATION.—
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1 ‘‘(I) MARKET ADMINISTRATOR.—

2 The Account shall be administered by

3 the Market Administrator.

4 ‘‘(II) USE OF FUNDS.—A deter5 mination regarding the use of the

6 funds in the Account shall be made by

7 the Safe Harbor Committee established

8 under clause (iii).

9 ‘‘(iii) SAFE HARBOR COMMITTEE.—The

10 Secretary shall establish a Safe Harbor

11 Committee consisting of 7 milk producers

12 appointed by the Secretary who supply milk

13 to handlers regulated under a Federal milk

14 marketing order.

15 ‘‘(iv) USE OF FUNDS.—

16 ‘‘(I) APPLICATIONS.—To be eligi17 ble to use amounts in the fund, a milk

18 producer who supplies milk to handlers

19 regulated under a Federal milk mar20 keting order shall submit an applica21 tion to the Safe Harbor Committee.

22 ‘‘(II) APPROVAL.—The Safe Har23 bor Committee may approve only ap24 plications that fund conservation prac25 tices approved by the Secretary that
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1 control the off-migration of nutrients

2 from the farm.

3 ‘‘(III) STATE WATER QUALITY

4 PRIORITIES.—In approving applica5 tions, the Safe Harbor Committee shall

6 take into account, to the extent prac7 ticable, the applicable State water

8 quality priorities.’’.

9 SEC. 502. CROP INSURANCE.

10 (a) CATASTROPHIC RISK PROTECTION.—Section

11 508(b) of the Federal Crop Insurance Act (7 U.S.C.

12 1508(b)) is amended—

13 (1) in paragraph (4), by adding at the end the

14 following:

15 ‘‘(C) DELIVERY OF COVERAGE.—

16 ‘‘(i) IN GENERAL.—In full consultation

17 with approved insurance providers, the Sec18 retary may continue to offer catastrophic

19 risk protection in a State (or a portion of

20 a State) through local offices of the Depart21 ment if the Secretary determines that there

22 is an insufficient number of approved in23 surance providers operating in the State or

24 portion to adequately provide catastrophic

25 risk protection coverage to producers.
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1 ‘‘(ii) COVERAGE BY APPROVED INSUR2 ANCE PROVIDERS.—To the extent that cata3 strophic risk protection coverage by ap4 proved insurance providers is sufficiently

5 available in a State as determined by the

6 Secretary, only approved insurance provid7 ers may provide the coverage in the State.

8 ‘‘(iii) CURRENT POLICIES.—Subject to

9 clause (ii), all catastrophic risk protection

10 policies written by local offices of the De11 partment shall be transferred (including all

12 fees collected for the crop year in which the

13 approved insurance provider will assume

14 the policies) to the approved insurance pro15 vider for performance of all sales, service,

16 and loss adjustment functions.’’; and

17 (2) in paragraph (7), by striking subparagraph

18 (A) and inserting the following:

19 ‘‘(A) IN GENERAL.—Effective for the spring20 planted 1996 and subsequent crops, to be eligible

21 for any payment or loan under the Agricultural

22 Market Transition Act or the Agricultural Ad23 justment Act of 1938 (7 U.S.C. 1301 et seq.), the

24 conservation reserve program, or any benefit de25 scribed in section 371 of the Consolidated Farm
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1 and Rural Development Act (7 U.S.C. 2008f), a

2 person shall—

3 ‘‘(i) obtain at least the catastrophic

4 level of insurance for each crop of economic

5 significance in which the person has an in6 terest; or

7 ‘‘(ii) provide a written waiver to the

8 Secretary that waives any eligibility for

9 emergency crop loss assistance in connection

10 with the crop.’’.

11 (b) COVERAGE OF SEED CROPS.—Section

12 519(a)(2)(B) of the Act (7 U.S.C. 1519(a)(2)(B)) is amend13 ed by inserting ‘‘seed crops,’’ after ‘‘turfgrass sod,’’.

14 (c) CROP INSURANCE PILOT PROJECT.—

15 (1) COVERAGE.—The Secretary of Agriculture

16 shall develop and administer a pilot project for crop

17 insurance coverage that indemnifies crop losses due to

18 a natural disaster such as insect infestation or dis19 ease.

20 (2) ACTUARIAL SOUNDNESS.—A pilot project

21 under this paragraph shall be actuarially sound, as

22 determined by the Secretary and administered at no

23 net cost to the United States Treasury.

24 (3) DURATION.—A pilot project under this para25 graph shall be of two years’ duration.
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1 (d) CROP INSURANCE FOR SPECIALTY CROPS.—Sec2 tion 508(a)(6) of the Federal Crop Insurance Act (7 U.S.C.

3 1508(a)(6)) is amended by adding at the end the following:

4 ‘‘(D) ADDITION OF SPECIALTY CROPS.—Not

5 later than 2 years after the date of enactment of

6 this subparagraph—

7 ‘‘(i) the Corporation shall issue regula8 tions to expand crop insurance coverage

9 under this title to include aquaculture; and

10 ‘‘(ii) The Corporation shall conduct a

11 study and limited pilot program on the fea12 sibility of insuring nursery crops.’’.

13 (e) MARKETING WINDOWS.—Section 508(j) of the Fed14 eral Crop Insurance Act (7 U.S.C. 1508(j)) is amended by

15 adding at the end the following:

16 ‘‘(4) MARKETING WINDOWS.—The Corporation

17 shall consider marketing windows in determining

18 whether it is feasible to require planting during a

19 crop year.’’.

20 SEC. 503. REVENUE INSURANCE.

21 Section 508(h) of the Federal Crop Insurance Act (7

22 U.S.C. 1508(h)) is amended by adding at the end the follow23 ing:

24 ‘‘(9) REVENUE INSURANCE PILOT PROGRAM.—
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1 ‘‘(A) IN GENERAL.—Not later than Decem2 ber 31, 1996, the Secretary shall carry out a

3 pilot program in a limited number of counties,

4 as determined by the Secretary, for crop years

5 1997, 1998, 1999, and 2000, under which a pro6 ducer of corn, wheat, or soybeans may elect to re7 ceive insurance against loss of revenue, as deter8 mined by the Secretary.

9 ‘‘(B) ADMINISTRATION.—Revenue insurance

10 under this paragraph shall—

11 ‘‘(i) be offered through reinsurance ar12 rangements with private insurance compa13 nies;

14 ‘‘(ii) offer at least a minimum level of

15 coverage that is an alternative to cata16 strophic crop insurance;

17 ‘‘(iii) be actuarily sound; and

18 ‘‘(iv) require the payment of premiums

19 and administrative fees by an insured pro20 ducer.’’.

21 SEC. 504. COLLECTION AND USE OF AGRICULTURAL QUAR22 ANTINE AND INSPECTION FEES.

23 Subsection (a) of section 2509 of the Food, Agriculture,

24 Conservation, and Trade Act of 1990 (21 U.S.C. 136a) is

25 amended to read as follows:
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1 ‘‘(a) QUARANTINE AND INSPECTION FEES.—

2 ‘‘(1) FEES AUTHORIZED.—The Secretary of Ag3 riculture may prescribe and collect fees sufficient—

4 ‘‘(A) to cover the cost of providing agricul5 tural quarantine and inspection services in con6 nection with the arrival at a port in the customs

7 territory of the United States, or the

8 preclearance or preinspection at a site outside

9 the customs territory of the United States, of an

10 international passenger, commercial vessel, com11 mercial aircraft, commercial truck, or railroad

12 car;

13 ‘‘(B) to cover the cost of administering this

14 subsection; and

15 ‘‘(C) through fiscal year 2002, to maintain

16 a reasonable balance in the Agricultural Quar17 antine Inspection User Fee Account established

18 under paragraph (5).

19 ‘‘(2) LIMITATION.—In setting the fees under

20 paragraph (1), the Secretary shall ensure that the

21 amount of the fees are commensurate with the costs of

22 agricultural quarantine and inspection services with

23 respect to the class of persons or entities paying the

24 fees. The costs of the services with respect to pas-
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1 sengers as a class includes the costs of related inspec2 tions of the aircraft or other vehicle.

3 ‘‘(3) STATUS OF FEES.—Fees collected under this

4 subsection by any person on behalf of the Secretary

5 are held in trust for the United States and shall be

6 remitted to the Secretary in such manner and at such

7 times as the Secretary may prescribe.

8 ‘‘(4) LATE PAYMENT PENALTIES.—If a person

9 subject to a fee under this subsection fails to pay the

10 fee when due, the Secretary shall assess a late pay11 ment penalty, and the overdue fees shall accrue inter12 est, as required by section 3717 of title 31, United

13 States Code.

14 ‘‘(5) AGRICULTURAL QUARANTINE INSPECTION

15 USER FEE ACCOUNT.—

16 ‘‘(A) ESTABLISHMENT.—There is estab17 lished in the Treasury of the United States a no18 year fund, to be known as the ‘Agricultural

19 Quarantine Inspection User Fee Account’, which

20 shall contain all of the fees collected under this

21 subsection and late payment penalties and inter22 est charges collected under paragraph (4)

23 through fiscal year 2002.

24 ‘‘(B) USE OF ACCOUNT.—For each of the

25 fiscal years 1996 through 2002, funds in the Ag-
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1 ricultural Quarantine Inspection User Fee Ac2 count shall be available, in such amounts as are

3 provided in advance in appropriations Acts, to

4 cover the costs associated with the provision of

5 agricultural quarantine and inspection services

6 and the administration of this subsection.

7 Amounts made available under this subpara8 graph shall be available until expended.

9 ‘‘(C) EXCESS FEES.—Fees and other

10 amounts collected under this subsection in any of

11 the fiscal years 1996 through 2002 in excess of

12 $100,000,000 shall be available for the purposes

13 specified in subparagraph (B) until expended,

14 without further appropriation.

15 ‘‘(6) USE OF AMOUNTS COLLECTED AFTER FIS16 CAL YEAR 2002.—After September 30, 2002, the unob17 ligated balance in the Agricultural Quarantine In18 spection User Fee Account and fees and other

19 amounts collected under this subsection shall be cred20 ited to the Department of Agriculture accounts that

21 incur the costs associated with the provision of agri22 cultural quarantine and inspection services and the

23 administration of this subsection. The fees and other

24 amounts shall remain available to the Secretary until

25 expended without fiscal year limitation.
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1 ‘‘(7) STAFF YEARS.—The number of full-time

2 equivalent positions in the Department of Agriculture

3 attributable to the provision of agricultural quar4 antine and inspection services and the administration

5 of this subsection shall not be counted toward the lim6 itation on the total number of full-time equivalent po7 sitions in all agencies specified in section 5(b) of the

8 Federal Workforce Restructuring Act of 1994 (Public

9 Law 103–226; 5 U.S.C. 3101 note) or other limita10 tion on the total number of full-time equivalent posi11 tions.’’.

12 SEC. 505. COMMODITY CREDIT CORPORATION INTEREST

13 RATE.

14 Notwithstanding any other provision of law, the

15 monthly Commodity Credit Corporation interest rate appli16 cable to loans provided for agricultural commodities by the

17 Corporation shall be 100 basis points greater than the rate

18 determined under the applicable interest rate formula in

19 effect on October 1, 1995.

20 SEC. 506. EVERGLADES AGRICULTURAL AREA.

21 (a) IN GENERAL.—On July 1, 1996, out of any funds

22 in the Treasury not otherwise appropriated, the Secretary

23 of the Treasury shall provide $200,000,000 to the Secretary

24 of the Interior to carry out this section.

25 (b) ENTITLEMENT.—The Secretary of the Interior—
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1 (1) shall accept the funds made available under

2 subsection (a);

3 (2) shall be entitled to receive the funds; and

4 (3) shall use the funds to conduct restoration ac5 tivities in the Everglades ecosystem, which may in6 clude acquiring private acreage in the Everglades Ag7 ricultural Area including approximately 52,000 acres

8 that is commonly known as the ‘‘Talisman tract’’.

9 (c) TRANSFERRING FUNDS.—The Secretary of the Inte10 rior may transfer funds to the Army Corps of Engineers,

11 the State of Florida, or the South Florida Water Manage12 ment District to carry out subsection (b)(3).

13 (d) DEADLINE.—Not later than December 31, 1999, the

14 Secretary of the Interior shall utilize the funds for restora15 tion activities referred to in subsection (b)(3).

16 SEC. 507. FUND FOR RURAL AMERICA.

17 (a) IN GENERAL.—The Secretary shall create an ac18 count called the Fund for Rural America for the purposes

19 of providing funds for activities described in subsection (c).

20 (b) COMMODITY CREDIT CORPORATION.—In each of

21 the 1996 through 1998 fiscal years, the Secretary shall

22 transfer into the Fund for Rural America (hereafter referred

23 to as the ‘‘Account’’)—

24 (1) $50,000,000 for the 1996 fiscal year;

25 (2) $100,000,000 for the 1997 fiscal year; and
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1 (3) $150,000,000 for the 1998 fiscal year.

2 (c) PURPOSES.—Except as provided in subsection (d),

3 the Secretary shall provide not more than one-third of the

4 funds from the Account for activities described in para5 graph (2).

6 (1) RURAL DEVELOPMENT ACTIVITIES.—The Sec7 retary may use the funds in the Account for the fol8 lowing rural development activities authorized in:

9 (A) The Housing Act of 1949 for—

10 (i) direct loans to low income borrow11 ers pursuant to section 502;

12 (ii) loans for financial assistance for

13 housing for domestic farm laborers pursu14 ant to section 514;

15 (iii) financial assistance for housing of

16 domestic farm labor pursuant to section

17 516;

18 (iv) grants and contracts for mutual

19 and self help housing pursuant to section

20 523(b)(1)(A); and

21 (v) grants for Rural Housing Preserva22 tion pursuant to section 533;

23 (B) The Food Security Act of 1985 for loans

24 to intermediary borrowers under the Rural De25 velopment Loan Fund;
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1 (C) Consolidated Farm and Rural Develop2 ment Act for—

3 (i) grants for Rural Business Enter4 prises pursuant to section 310B (c) and (j);

5 (ii) direct loans, loan guarantees and

6 grants for water and waste water projects

7 pursuant to section 306; and

8 (iii) down payments assistance to

9 farmers, section 310E;

10 (D) grants for outreach to socially dis11 advantaged farmers and ranchers pursuant to

12 section 2501 of the Food, Agriculture, Conserva13 tion, and Trade Act of 1990 (7 U.S.C. 2279);

14 and

15 (E) grants pursuant to section 204(6) of the

16 Agricultural Marketing Act of 1946.

17 (2) RESEARCH.—

18 (A) IN GENERAL.—The Secretary may use

19 the funds in the Account for research grants to

20 increase the competitiveness and farm profit21 ability, protect and enhance natural resources,

22 increase economic opportunities in farming and

23 rural communities and expand locally owned

24 value added processing and marketing oper25 ations.
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1 (B) ELIGIBLE GRANTEE.—The Secretary

2 may make a grant under this paragraph to—

3 (i) a college or university;

4 (ii) a State agricultural experiment

5 station;

6 (iii) a State Cooperative Extension

7 Service;

8 (iv) a research institution or organiza9 tion;

10 (v) a private organization or person;

11 or

12 (iv) a Federal agency.

13 (C) USE OF GRANT.—

14 (i) IN GENERAL.—A grant made under

15 this paragraph may be used by a grantee

16 for 1 or more of the following uses—

17 (I) research, ranging from discov18 ery to principles of application;

19 (II) extension and related private20 sector activities; and

21 (III) education.

22 (ii) LIMITATION.—No grant shall be

23 made for any project, determined by the

24 Secretary, to be eligible for funding under
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1 research and commodity promotion pro2 grams administered by the Department.

3 (D) ADMINISTRATION.—

4 (i) PRIORITY.—In administering this

5 paragraph, the Secretary shall—

6 (I) establish priorities for allocat7 ing grants, based on needs and

8 oppportunities of the food and agri9 culture system in the United States re10 lated to the goals of the paragraph;

11 (II) seek and accept proposals for

12 grants;

13 (III) determine the relevance and

14 merit of proposals through a system of

15 peer and stakeholder review; and

16 (IV) award grants on the basis of

17 merit, quality, and relevance to ad18 vancing the national research and ex19 tension purposes.

20 (ii) COMPETITIVE AWARDING.—A

21 grant under this paragraph shall be award22 ed on a competitive basis.

23 (iii) TERMS.—A grant under this

24 paragraph shall have a term that does not

25 exceed 5 years.
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1 (iv) MATCHING FUNDS.—As a condi2 tion of receipts under this paragraph, the

3 Secretary shall require the funding of the

4 grant with equal matching funds from a

5 non-Federal source if the grant is—

6 (I) for applied research that is

7 commodity-specific; and

8 (II) not of national scope.

9 (v) ADMINISTRATIVE COSTS.—

10 (I) IN GENERAL.—The Secretary

11 may use not more than 4 percent of the

12 funds made available under this para13 graph for administrative costs incurred

14 by the Secretary in carrying out this

15 paragraph.

16 (II) LIMITATION.—Funds made

17 available under this paragraph shall

18 not be used—

19 (aa) for the construction of a

20 new building or the acquisition,

21 expansion, remodeling, or alter22 ation of an existing building (in23 cluding site grading and improve24 ment and architect fees); or
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1 (bb) in excess of ten percent

2 of the annual allocation for com3 modity-specific projects not of the

4 national scope.

5 (d) LIMITATIONS.—No funds from the Fund for Rural

6 America may be used for an activity specified in subsection

7 (c) if the current level of appropriations for the activity

8 is less than 90 percent of the 1996 fiscal year appropria9 tions for the activity adjusted for inflation.

10 Subtitle B—Options Pilot Programs

11 and Risk Management Education

12 SEC. 511. SHORT TITLE.

13 This subtitle may be cited as the ‘‘Options Pilot Pro14 grams Act of 1996’’.

15 SEC. 512. PURPOSE.

16 The purpose of this subtitle is to authorize the Sec17 retary of Agriculture (referred to in this subtitle as the

18 ‘‘Secretary’’) to—

19 (1) conduct research through pilot programs for

20 1 or more program commodities to ascertain whether

21 futures and options contracts can provide producers

22 with reasonable protection from the financial risks of

23 fluctuations in price, yield, and income inherent in

24 the production and marketing of agricultural com25 modities; and
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1 (2) provide education in the management of the

2 financial risks inherent in the production and mar3 keting of agricultural commodities.

4 SEC. 513. PILOT PROGRAMS.

5 (a) IN GENERAL.—The Secretary is authorized to con6 duct pilot programs for 1 or more supported commodities

7 through December 31, 2002.

8 (b) DISTRIBUTION OF PILOT PROGRAMS.—The Sec9 retary may operate a pilot program described in subsection

10 (a) (referred to in this subtitle as a ‘‘pilot program’’) in

11 up to 100 counties for each program commodity with not

12 more than 6 of those counties in any 1 State. A pilot pro13 gram shall not be implemented in any county for more than

14 3 of the 1996 through 2002 calendar years.

15 (c) ELIGIBLE PARTICIPANTS.—

16 (1) IN GENERAL.—In carrying out a pilot pro17 gram, the Secretary may contract with a producer

18 who—

19 (A) is eligible to participate in a price sup20 port program for a supported commodity;

21 (B) desires to participate in a pilot pro22 gram; and

23 (C) is located in an area selected for a pilot

24 program.
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1 (2) CONTRACTS.—Each contract under para2 graph (1) shall set forth the terms and conditions for

3 participation in a pilot program.

4 (d) ELIGIBLE MARKETS.—Trades for futures and op5 tions contracts under a pilot program shall be carried out

6 on commodity futures and options markets designated as

7 contract markets under the Commodity Exchange Act (7

8 U.S.C. 1 et seq.)

9 SEC. 514. TERMS AND CONDITIONS.

10 (a) IN GENERAL.—To be eligible to participate in any

11 pilot program for any commodity conducted under this sub12 title, a producer shall meet the eligibility requirements es13 tablished under this subtitle (including regulations issued

14 under this subtitle).

15 (b) RECORDKEEPING.—Producers shall compile, main16 tain, and submit (or authorize the compilation, mainte17 nance, and submission) of such documentation as the regu18 lations governing any pilot program require.

19 SEC. 515. NOTICE.

20 (a) ALTERNATIVE PROGRAMS.—Pilot programs shall

21 be alternatives to other related programs of the Department

22 of Agriculture.

23 (b) NOTICE TO PRODUCERS.—The Secretary shall pro24 vide notice to each producer participating in a pilot pro25 gram that—
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1 (1) the participation of the producer in a pilot

2 program is voluntary; and

3 (2) neither the United States, the Commodity

4 Credit Corporation, the Federal Crop Insurance Cor5 poration, the Department of Agriculture, nor any

6 other Federal agency is authorized to guarantee that

7 participants in the pilot program will be better or

8 worse off financially as a result of participation in

9 a pilot program than the producer would have been

10 if the producer had not participated in a pilot pro11 gram.

12 SEC. 516. COMMODITY CREDIT CORPORATION.

13 (a) IN GENERAL.—Pilot programs established under

14 this subtitle shall be funded by and carried out through the

15 Commodity Credit Corporation.

16 (b) LIMITATION.—In conducting the programs, the

17 Secretary shall, to the maximum extent practicable, operate

18 the pilot programs in a budget neutral manner.

19 SEC. 517. RISK MANAGEMENT EDUCATION.

20 The Secretary shall provide such education in manage21 ment of the financial risks inherent in the production and

22 marketing of agricultural commodities as the Secretary con23 siders appropriate.
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1 Subtitle C—Commercial Transpor2 tation of Equine for Slaughter

3 SEC. 521. FINDINGS.

4 Congress finds that, to ensure that equine sold for

5 slaughter are provided humane treatment and care, it is

6 essential to regulate the transportation, care, handling, and

7 treatment of equine by any person engaged in the commer8 cial transportation of equine for slaughter.

9 SEC. 522. DEFINITIONS.

10 In this subtitle:

11 (1) COMMERCE.—The term ‘‘commerce’’ means

12 trade, traffic, transportation, or other commerce by a

13 person—

14 (A) between any State, territory, or posses15 sion of the United States, or the District of Co16 lumbia, and any place outside thereof;

17 (B) between points within the same State,

18 territory, or possession of the United States, or

19 the District of Columbia, but through any place

20 outside thereof; or

21 (C) within any territory or possession of the

22 United States or the District of Columbia.

23 (2) DEPARTMENT.—The term ‘‘Department’’

24 means the United States Department of Agriculture.
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1 (3) EQUINE.—The term ‘‘equine’’ means any

2 member of the Equidae family.

3 (4) EQUINE FOR SLAUGHTER.—The term

4 ‘‘equine for slaughter’’ means any equine that is

5 transported, or intended to be transported, by vehicle

6 to a slaughter facility or intermediate handler from

7 a sale, auction, or intermediate handler by a person

8 engaged in the business of transporting equine for

9 slaughter.

10 (5) FOAL.—The term ‘‘foal’’ means an equine

11 that is not more than 6 months of age.

12 (6) INTERMEDIATE HANDLER.—The term ‘‘inter13 mediate handler’’ means any person regularly en14 gaged in the business of receiving custody of equine

15 for slaughter in connection with the transport of the

16 equine to a slaughter facility, including a stockyard,

17 feedlot, or assembly point.

18 (7) PERSON.—The term ‘‘person’’ means any in19 dividual, partnership, firm, company, corporation, or

20 association that regularly transports equine for

21 slaughter in commerce, except that the term shall not

22 include an individual or other entity that does not

23 transport equine for slaughter on a regular basis as

24 part of a commercial enterprise.
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1 (8) SECRETARY.—The term ‘‘Secretary’’ means

2 the Secretary of Agriculture.

3 (9) VEHICLE.—The term ‘‘vehicle’’ means any

4 machine, truck, tractor, trailer, or semitrailer, or any

5 combination thereof, propelled or drawn by mechani6 cal power and used on a highway in the commercial

7 transportation of equine for slaughter.

8 (10) STALLION.—The term ‘‘stallion’’ means any

9 uncastrated male equine that is 1 year of age or older.

10 SEC. 523. STANDARDS FOR HUMANE COMMERCIAL TRANS11 PORTATION OF EQUINE FOR SLAUGHTER.

12 (a) IN GENERAL.—Subject to the availability of appro13 priations, not later than 1 year after the date of enactment

14 of this subtitle, the Secretary shall issue, by regulation,

15 standards for the humane commercial transportation by ve16 hicle of equine for slaughter.

17 (b) PROHIBITION.—No person engaged in the regular

18 business of transporting equine by vehicle for slaughter as

19 part of a commercial enterprise shall transport in com20 merce, to a slaughter facility or intermediate handler, an

21 equine for slaughter except in accordance with the stand22 ards and this subtitle.

23 (c) MINIMUM REQUIREMENTS.—The standards shall

24 include minimum requirements for the humane handling,

25 care, treatment, and equipment necessary to ensure the safe
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1 and humane transportation of equine for slaughter. The

2 standards shall require, at a minimum, that—

3 (1) no equine for slaughter shall be transported

4 for more than 24 hours without being unloaded from

5 the vehicle and allowed to rest for at least 8 consecu6 tive hours and given access to adequate quantities of

7 wholesome food and potable water;

8 (2) a vehicle shall provide adequate headroom for

9 an equine for slaughter with a minimum of at least

10 6 feet, 6 inches of headroom from the roof and beams

11 or other structural members overhead to floor

12 underfoot, except that a vehicle transporting 6 equine

13 or less shall provide a minimum of at least 6 feet of

14 headroom from the roof and beams or other structural

15 members overhead to floor underfoot if none of the

16 equine are over 16 hands;

17 (3) the interior of a vehicle shall—

18 (A) be free of protrusions, sharp edges, and

19 harmful objects;

20 (B) have ramps and floors that are ade21 quately covered with a nonskid nonmetallic sur22 face; and

23 (C) be maintained in a sanitary condition;

24 (4) a vehicle shall—
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1 (A) provide adequate ventilation and shelter

2 from extremes of weather and temperature for all

3 equine;

4 (B) be of appropriate size, height, and inte5 rior design for the number of equine being car6 ried to prevent overcrowding; and

7 (C) be equipped with doors and ramps of

8 sufficient size and location to provide for safe

9 loading and unloading, including unloading

10 during emergencies;

11 (5)(A) equine shall be positioned in the vehicle

12 by size; and

13 (B) stallions shall be segregated from other

14 equine;

15 (6)(A) all equine for slaughter must be fit to

16 travel as determined by an accredited veterinarian,

17 who shall prepare a certificate of inspection, prior to

18 loading for transport, that—

19 (i) states that the equine were inspected and

20 satisfied the requirements of subparagraph (B);

21 (ii) includes a clear description of each

22 equine; and

23 (iii) is valid for 7 days;

24 (B) no equine shall be transported to slaughter

25 if the equine is found to be—
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1 (i) suffering from a broken or dislocated

2 limb;

3 (ii) unable to bear weight on all 4 limbs;

4 (iii) blind in both eyes; or

5 (iv) obviously suffering from severe illness,

6 injury, lameness, or physical debilitation that

7 would make the equine unable to withstand the

8 stress of transportation;

9 (C) no foal may be transported for slaughter;

10 (D) no mare in foal that exhibits signs of im11 pending parturition may be transported for slaughter;

12 and

13 (E) no equine for slaughter shall be accepted by

14 a slaughter facility unless the equine is—

15 (i) inspected on arrival by an employee of

16 the slaughter facility or an employee of the De17 partment; and

18 (ii) accompanied by a certificate of inspec19 tion issued by an accredited veterinarian, not

20 more than 7 days before the delivery, stating that

21 the veterinarian inspected the equine on a speci22 fied date.

23 SEC. 524. RECORDS.

24 (a) IN GENERAL.—A person engaged in the business

25 of transporting equine for slaughter shall establish and
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1 maintain such records, make such reports, and provide such

2 information as the Secretary may, by regulation, require

3 for the purposes of carrying out, or determining compliance

4 with, this subtitle.

5 (b) MINIMUM REQUIREMENTS.—The records shall in6 clude, at a minimum—

7 (1) the veterinary certificate of inspection;

8 (2) the names and addresses of current owners

9 and consignors, if applicable, of the equine at the

10 time of sale or consignment to slaughter; and

11 (3) the bill of sale or other documentation of sale

12 for each equine.

13 (c) AVAILABILITY.—The records shall—

14 (1) accompany the equine during transport to

15 slaughter;

16 (2) be retained by any person engaged in the

17 business of transporting equine for slaughter for a

18 reasonable period of time, as determined by the Sec19 retary, except that the veterinary certificate of inspec20 tion shall be surrendered at the slaughter facility to

21 an employee or designee of the Department and kept

22 by the Department for a reasonable period of time, as

23 determined by the Secretary; and

24 (3) on request of an officer or employee of the

25 Department, be made available at all reasonable
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1 times for inspection and copying by the officer or em2 ployee.

3 SEC. 525. AGENTS.

4 (a) IN GENERAL.—For purposes of this subtitle, the

5 act, omission, or failure of an individual acting for or em6 ployed by a person engaged in the business of transporting

7 equine for slaughter, within the scope of the employment

8 or office of the individual, shall be considered the act, omis9 sion, or failure of the person engaging in the commercial

10 transportation of equine for slaughter as well as of the indi11 vidual.

12 (b) ASSISTANCE.—If an equine suffers a substantial

13 injury or illness while being transported for slaughter on

14 a vehicle, the driver of the vehicle shall seek prompt assist15 ance from a licensed veterinarian.

16 SEC. 526. COOPERATIVE AGREEMENTS.

17 The Secretary is authorized to cooperate with States,

18 political subdivisions of States, State agencies (including

19 State departments of agriculture and State law enforcement

20 agencies), and foreign governments to carry out and enforce

21 this subtitle (including regulations issued under this sub22 title).

23 SEC. 527. INVESTIGATIONS AND INSPECTIONS.

24 (a) IN GENERAL.—The Secretary is authorized to con25 duct such investigations or inspections as the Secretary con-
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1 siders necessary to enforce this subtitle (including any regu2 lation issued under this subtitle).

3 (b) ACCESS.—For the purposes of conducting an inves4 tigation or inspection under subsection (a), the Secretary

5 shall, at all reasonable times, have access to—

6 (1) the place of business of any person engaged

7 in the business of transporting equine for slaughter;

8 (2) the facilities and vehicles used to transport

9 the equine; and

10 (3) records required to be maintained under sec11 tion 834.

12 (c) ASSISTANCE TO OR DESTRUCTION OF EQUINE.—

13 The Secretary shall issue such regulations as the Secretary

14 considers necessary to permit employees or agents of the De15 partment to—

16 (1) provide assistance to any equine that is cov17 ered by this subtitle (including any regulation issued

18 under this subtitle); or

19 (2) destroy, in a humane manner, any such

20 equine found to be suffering.

21 SEC. 528. INTERFERENCE WITH ENFORCEMENT.

22 (a) IN GENERAL.—Subject to subsection (b), a person

23 who forcibly assaults, resists, opposes, impedes, intimidates,

24 or interferes with any person while engaged in or on ac25 count of the performance of an official duty of the person
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1 under this subtitle shall be fined not more than $5,000 or

2 imprisoned not more than 3 years, or both.

3 (b) WEAPONS.—If the person uses a deadly or dan4 gerous weapon in connection with an action described in

5 subsection (a), the person shall be fined not more than

6 $10,000 or imprisoned not more than 10 years, or both.

7 SEC. 529. JURISDICTION OF COURTS.

8 Except as provided in section 840(a)(5), a district

9 court of the United States in any appropriate judicial dis10 trict under section 1391 of title 28, United States Code,

11 shall have jurisdiction to specifically enforce this subtitle,

12 to prevent and restrain a violation of this subtitle, and to

13 otherwise enforce this subtitle.

14 SEC. 530. CIVIL AND CRIMINAL PENALTIES.

15 (a) CIVIL PENALTIES.—

16 (1) IN GENERAL.—A person who violates this

17 subtitle (including a regulation or standard issued

18 under this subtitle) shall be assessed a civil penalty

19 by the Secretary of not more than $2,000 for each vio20 lation.

21 (2) SEPARATE OFFENSES.—Each equine trans22 ported in violation of this subtitle shall constitute a

23 separate offense. Each violation and each day during

24 which a violation continues shall constitute a sepa25 rate offense.
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1 (3) HEARINGS.—No penalty shall be assessed

2 under this subsection unless the person who is alleged

3 to have violated this subtitle is given notice and op4 portunity for a hearing with respect to an alleged vio5 lation.

6 (4) FINAL ORDER.—An order of the Secretary

7 assessing a penalty under this subsection shall be

8 final and conclusive unless the aggrieved person files

9 an appeal from the order pursuant to paragraph (5).

10 (5) APPEALS.—Not later than 30 days after

11 entry of a final order of the Secretary issued pursu12 ant to this subsection, a person aggrieved by the order

13 may seek review of the order in the appropriate Unit14 ed States Court of Appeals. The Court shall have ex15 clusive jurisdiction to enjoin, set aside, suspend (in

16 whole or in part), or to determine the validity of the

17 order.

18 (6) NONPAYMENT OF PENALTY.—On a failure to

19 pay the penalty assessed by a final order under this

20 section, the Secretary shall request the Attorney Gen21 eral to institute a civil action in a district court of

22 the United States or other United States court for

23 any district in which the person is found, resides, or

24 transacts business, to collect the penalty. The court

25 shall have jurisdiction to hear and decide the action.
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1 (b) CRIMINAL PENALTIES.—

2 (1) FIRST OFFENSE.—Subject to paragraph (2),

3 a person who knowingly violates this subtitle (or a

4 regulation or standard issued under this subtitle)

5 shall, on conviction of the violation, be subject to im6 prisonment for not more than 1 year or a fine of not

7 more than $2,000, or both.

8 (2) SUBSEQUENT OFFENSES.—On conviction of

9 a second or subsequent offense described in paragraph

10 (1), a person shall be subject to imprisonment for not

11 more than 3 years or to a fine of not more than

12 $5,000, or both.

13 SEC. 531. PAYMENTS FOR TEMPORARY OR MEDICAL ASSIST14 ANCE FOR EQUINE DUE TO VIOLATIONS.

15 From sums received as penalties, fines, or forfeitures

16 of property for any violation of this subtitle (including a

17 regulation issued under this subtitle), the Secretary shall

18 pay the reasonable and necessary costs incurred by any per19 son in providing temporary care or medical assistance for

20 any equine that needs the care or assistance due to a viola21 tion of this subtitle.

22 SEC. 532. RELATIONSHIP TO STATE LAW.

23 Nothing in this subtitle prevents a State from enacting

24 or enforcing any law (including a regulation) that is not
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1 inconsistent with this subtitle or that is more restrictive

2 than this subtitle.

3 SEC. 533. AUTHORIZATION OF APPROPRIATIONS.

4 (a) IN GENERAL.—There are authorized to be appro5 priated for each fiscal year such sums as are necessary to

6 carry out this subtitle.

7 (b) LIMITATION.—No provision of this subtitle shall be

8 effective, or be enforced against any person, during a fiscal

9 year unless funds to carry out this subtitle have been appro10 priated for the fiscal year.

11 Subtitle D—Miscellaneous

12 SEC. 541. LIVESTOCK DEALER TRUST.

13 Title III of the Packers and Stockyards Act, 1921 (7

14 U.S.C. 201 et seq.), is amended by adding at the end the

15 following:

16 ‘‘SEC. 318. LIVESTOCK DEALER TRUST.

17 ‘‘(a) FINDINGS.—Congress finds that—

18 ‘‘(1) a burden on and obstruction to commerce in

19 livestock is caused by financing arrangements under

20 which dealers and market agencies purchasing live21 stock on commission encumber, give lenders security

22 interests in, or have liens placed on livestock pur23 chased by the dealers and market agencies in cash

24 sales, or on receivables from or proceeds of such sales,

25 when payment is not made for the livestock; and
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1 ‘‘(2) the carrying out of such arrangements is

2 contrary to the public interest.

3 ‘‘(b) PURPOSE.—The purpose of this section is to rem4 edy the burden on and obstruction to commerce in livestock

5 described in paragraph (1) and protect the public interest.

6 ‘‘(c) DEFINITIONS.—In this section:

7 ‘‘(1) CASH SALE.—The term ‘cash sale’ means a

8 sale in which the seller does not expressly extend cred9 it to the buyer.

10 ‘‘(2) TRUST.—The term ‘trust’ means 1 or more

11 assets of a buyer that (subsequent to a cash sale of

12 livestock) constitutes the corpus of a trust held for the

13 benefit of a seller and consists of—

14 ‘‘(A) account receivables and proceeds

15 earned from the cash sale of livestock by a dealer;

16 ‘‘(B) account receivables and proceeds of a

17 marketing agency earned on commission from

18 the cash sale of livestock;

19 ‘‘(C) the inventory of the dealer or market20 ing agency; or

21 ‘‘(D) livestock involved in the cash sale, if

22 the seller has not received payment in full for the

23 livestock and a bona fide third-party purchaser

24 has not purchased the livestock from the dealer

25 or marketing agency.
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1 ‘‘(d) HOLDING IN TRUST.—

2 ‘‘(1) IN GENERAL.—The account receivables and

3 proceeds generated in a cash sale made by a dealer

4 or a market agency on commission and the inventory

5 of the dealer or market agency shall be held by the

6 dealer or market agency in trust for the benefit of the

7 seller of the livestock until the seller receives payment

8 in full for the livestock.

9 ‘‘(2) EXEMPTION.—Paragraph (1) does not

10 apply in the case of a cash sale made by a dealer or

11 market agency if the total amount of cash sales made

12 by the dealer or market agency during the preceding

13 12 months does not exceed $250,000.

14 ‘‘(3) DISHONOR OF INSTRUMENT OF PAYMENT.—

15 A payment in a sale described in paragraph (1) shall

16 not be considered to be made if the instrument by

17 which payment is made is dishonored.

18 ‘‘(4) LOSS OF BENEFIT OF TRUST.—If an instru19 ment by which payment is made in a sale described

20 in paragraph (1) is dishonored, the seller shall lose

21 the benefit of the trust under paragraph (1) on the

22 earlier of—

23 ‘‘(A) the date that is 15 business days after

24 date on which the seller receives notice of the dis25 honor; or
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1 ‘‘(B) the date that is 30 days after the final

2 date for making payment under section 409,

3 unless the seller gives written notice to the dealer or

4 market agency of the seller’s intention to preserve the

5 trust and submits a copy of the notice to the Sec6 retary.

7 ‘‘(5) RIGHTS OF THIRD-PARTY PURCHASER.—

8 The trust established under paragraph (1) shall have

9 no effect on the rights of a bona fide third-party pur10 chaser of the livestock, without regard to whether the

11 livestock are delivered to the bona fide purchaser.

12 ‘‘(e) JURISDICTION.—The district courts of the United

13 States shall have jurisdiction in a civil action—

14 ‘‘(1) by the beneficiary of a trust described in

15 subsection (c)(1), to enforce payment of the amount

16 held in trust; and

17 ‘‘(2) by the Secretary, to prevent and restrain

18 dissipation of a trust described in subsection (c)(1).’’.

19 SEC. 542. PLANTING OF ENERGY CROPS.

20 (a) FEED GRAINS.—The first sentence of section

21 105B(c)(1)(F)(i) of the Agricultural Act of 1949 (7 U.S.C.

22 1444f(c)(1)(F)(i)) is amended by inserting ‘‘herbaceous pe23 rennial grass, short rotation woody coppice species of trees,

24 other energy crops designated by the Secretary with high

25 energy content,’’ after ‘‘mung beans,’’.
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1 (b) WHEAT.—The first sentence of section

2 107B(c)(1)(F)(i) of the Agricultural Act of 1949 (7 U.S.C.

3 1445b–3a(c)(1)(F)(i)) is amended by inserting ‘‘herbaceous

4 perennial grass, short rotation woody coppice species of

5 trees, other energy crops designated by the Secretary with

6 high energy content,’’ after ‘‘mung beans,’’.

7 SEC. 543. REIMBURSABLE AGREEMENTS.

8 Section 737 of Public Law 102–142 (7 U.S.C. 2277)

9 is amended—

10 (1) by striking ‘‘SEC. 737. Funds’’ and inserting

11 the following:

12 ‘‘SEC. 737. SERVICES FOR APHIS PERFORMED OUTSIDE THE

13 UNITED STATES.

14 ‘‘(a) IN GENERAL.—Funds’’; and

15 (2) by adding at the end the following:

16 ‘‘(b) REIMBURSABLE AGREEMENTS.—

17 ‘‘(1) IN GENERAL.—The Secretary of Agriculture

18 may enter into reimbursable fee agreements with per19 sons for preclearance at locations outside the United

20 States of plants, plant products, animals, and articles

21 for movement to the United States.

22 ‘‘(2) OVERTIME, NIGHT, AND HOLIDAY WORK.—

23 Notwithstanding any other law, the Secretary of Agri24 culture may pay an employee of the Department of

25 Agriculture preforming services relating to imports
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1 into and exports from the United States for overtime,

2 night, and holiday work performed by the employee at

3 a rate of pay established by the Secretary.

4 ‘‘(3) REIMBURSEMENT.—

5 ‘‘(A) IN GENERAL.—The Secretary of Agri6 culture may require persons for whom

7 preclearance services are performed to reimburse

8 the Secretary for any amounts paid by the Sec9 retary for performance of the services.

10 ‘‘(B) CREDITING OF FUNDS.—All funds col11 lected under subparagraph (A) shall be credited

12 to the account that incurs the costs and shall re13 main available until expended without fiscal

14 year limitation.

15 ‘‘(C) LATE PAYMENT PENALTY.—

16 ‘‘(i) IN GENERAL.—On failure of a

17 person to reimburse the Secretary of Agri18 culture for the costs of performance of

19 preclearance services—

20 ‘‘(I) the Secretary may assess a

21 late payment penalty; and

22 ‘‘(II) the overdue funds shall ac23 crue interest in accordance with sec24 tion 3717 of title 31, United States

25 Code.
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1 ‘‘(ii) CREDITING OF FUNDS.—Any late

2 payment penalty and any accrued interest

3 collected under this subparagraph shall be

4 credited to the account that incurs the costs

5 and shall remain available until expended

6 without fiscal year limitation.’’.

7 SEC. 544. SWINE HEALTH PROTECTION.

8 (a) TERMINATION OF STATE PRIMARY ENFORCEMENT

9 RESPONSIBILITY.—Section 10 of the Swine Health Protec10 tion Act (7 U.S.C. 3809) is amended—

11 (1) by redesignating subsection (c) as subsection

12 (d); and

13 (2) by inserting after subsection (b) the follow14 ing:

15 ‘‘(c) REQUEST OF STATE OFFICIAL.—

16 ‘‘(1) IN GENERAL.—On request of the Governor

17 or other appropriate official of a State, the Secretary

18 may terminate, effective as soon as the Secretary de19 termines is practicable, the primary enforcement re20 sponsibility of a State under subsection (a). In termi21 nating the primary enforcement responsibility under

22 this subsection, the Secretary shall work with the ap23 propriate State official to determine the level of sup24 port to be provided to the Secretary by the State

25 under this Act.
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1 ‘‘(2) REASSUMPTION.—Nothing in this sub2 section shall prevent a State from reassuming pri3 mary enforcement responsibility if the Secretary de4 termines that the State meets the requirements of sub5 section (a).’’.

6 (b) ADVISORY COMMITTEE.—The Swine Health Pro7 tection Act is amended—

8 (1) by striking section 11 (7 U.S.C. 3810); and

9 (2) by redesignating sections 12, 13, and 14 (7

10 U.S.C. 3811, 3812, and 3813) as sections 11, 12, and

11 13, respectively.

12 SEC. 545. COOPERATIVE WORK FOR PROTECTION, MANAGE13 MENT, AND IMPROVEMENT OF NATIONAL

14 FOREST SYSTEM.

15 The penultimate paragraph of the matter under the

16 heading ‘‘FOREST SERVICE.’’ of the first section of the

17 Act of June 30, 1914 (38 Stat. 430, chapter 131; 16 U.S.C.

18 498), is amended—

19 (1) by inserting ‘‘, management,’’ after ‘‘the pro20 tection’’;

21 (2) by striking ‘‘national forests,’’ and inserting

22 ‘‘National Forest System,’’;

23 (3) by inserting ‘‘management,’’ after ‘‘protec24 tion,’’ both places it appears; and
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1 (4) by adding at the end the following new sen2 tences: ‘‘Payment for work undertaken pursuant to

3 this paragraph may be made from any appropriation

4 of the Forest Service that is available for similar

5 work if a written agreement so provides and reim6 bursement will be provided by a cooperator in the

7 same fiscal year as the expenditure by the Forest

8 Service. A reimbursement received from a cooperator

9 that covers the proportionate share of the cooperator

10 of the cost of the work shall be deposited to the credit

11 of the appropriation of the Forest Service from which

12 the payment was initially made or, if the appropria13 tion is no longer available to the credit of an appro14 priation of the Forest Service that is available for

15 similar work. The Secretary of Agriculture shall es16 tablish written rules that establish criteria to be used

17 to determine whether the acceptance of contributions

18 of money under this paragraph would adversely affect

19 the ability of an officer or employee of the United

20 States Department of Agriculture to carry out a duty

21 or program of the officer or employee in a fair and

22 objective manner or would compromise, or appear to

23 compromise, the integrity of the program, officer, or

24 employee. The Secretary of Agriculture shall establish
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1 written rules that protect the interests of the Forest

2 Service in cooperative work agreements.’’.

3 SEC. 546. AMENDMENT OF THE VIRUS-SERUM TOXIN ACT OF

4 1913.

5 The Act of March 4, 1913 (37 Stat. 828, chapter 145),

6 is amended in the eighth paragraph under the heading

7 ‘‘BUREAU OF ANIMAL INDUSTRY’’, commonly known

8 as the ‘‘Virus-Serum Toxin Act of 1913’’, by striking the

9 10th sentence (21 U.S.C. 158) and inserting ‘‘A person,

10 firm, or corporation that knowingly violates any of the pro11 visions of this paragraph or regulations issued under this

12 paragraph, or knowingly forges, counterfeits, or, without

13 authorization by the Secretary of Agriculture, uses, alters,

14 defaces, or destroys any certificate, permit, license, or other

15 document provided for in this paragraph, may, for each

16 violation, after written notice and opportunity for a hear17 ing on the record, be assessed a civil penalty by the Sec18 retary of Agriculture of not more than $5,000, or shall, on

19 conviction, be assessed a criminal penalty of not more than

20 $10,000, imprisoned not more than 1 year, or both. In the

21 course of an investigation of a suspected violation of this

22 paragraph, the Secretary of Agriculture may issue subpoe23 nas requiring the attendance and testimony of witnesses

24 and the production of evidence that relates to the matter

25 under investigation. In determining the amount of a civil
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1 penalty, the Secretary of Agriculture shall take into account

2 the nature, circumstances, extent, and gravity of the viola3 tion, the ability of the violator to pay the penalty, the effect

4 that the assessment would have on the ability of the violator

5 to continue to do business, any history of such violations

6 by the violator, the degree of culpability of the violator, and

7 such other matters as justice may require. An order assess8 ing a civil penalty shall be treated as a final order

9 reviewable under chapter 158 of title 28, United State’s

10 Code. The Secretary of Agriculture may compromise, mod11 ify, or remit a civil penalty with or without conditions.

12 The amount of a civil penalty that is paid (including any

13 amount agreed on in compromise) may be deducted from

14 any sums owing by the United States to the violator. The

15 total amount of civil penalties assessed against a violator

16 shall not exceed $300,000 for all such violations adjudicated

17 in a single proceeding. The validity of an order assessing

18 a civil penalty shall not be subject to review in an action

19 to collect the civil penalty. The unpaid amount of a civil

20 penalty not paid in full when due shall accrue interest at

21 the rate of interest applicable to civil judgments of the

22 courts of the United States.’’.
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1 SEC. 547. OVERSEAS TORT CLAIMS.

2 Title VII of Public Law 102–142 (105 Stat. 911) is

3 amended by inserting after section 737 (7 U.S.C. 2277) the

4 following:

5 ‘‘SEC. 737A. OVERSEAS TORT CLAIMS.

6 ‘‘The Secretary of Agriculture may pay a tort claim

7 in the manner authorized in section 2672 of title 28, United

8 States Code, if the claim arises outside the United States

9 in connection with activities of individuals who are per10 forming services for the Secretary. A claim may not be al11 lowed under this section unless the claim is presented in

12 writing to the Secretary within 2 years after the date on

13 which the claim accrues.’’.

14 SEC. 548. GRADUATE SCHOOL OF THE UNITED STATES DE15 PARTMENT OF AGRICULTURE.

16 (a) PURPOSE.—The purpose of this section is to au17 thorize the continued operation of the Graduate School as

18 a nonappropriated fund instrumentality of the Department

19 of Agriculture.

20 (b) DEFINITIONS.—In this section:

21 (1) BOARD.—The term ‘‘Board’’ means the Gen22 eral Administration Board of the Graduate School.

23 (2) DEPARTMENT.—The term ‘‘Department’’

24 means the Department of Agriculture.

25 (3) DIRECTOR.—The term ‘‘Director’’ means the

26 Director of the Graduate School.
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1 (4) GRADUATE SCHOOL.—The term ‘‘Graduate

2 School’’ means the Graduate School of the United

3 States Department of Agriculture.

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

5 the Secretary of Agriculture.

6 (c) FUNCTIONS AND AUTHORITY.—

7 (1) IN GENERAL.—The Graduate School shall

8 continue as a nonappropriated fund instrumentality

9 of the Department under the general supervision of

10 the Secretary.

11 (2) ACTIVITIES.—The Graduate School shall de12 velop and administer education, training, and profes13 sional development activities, including the provision

14 of educational activities for Federal agencies, Federal

15 employees, nonprofit organizations, other entities, and

16 members of the general public.

17 (3) FEES.—

18 (A) IN GENERAL.—The Graduate School

19 may charge and retain fair and reasonable fees

20 for the activities that it provides based on the

21 cost of the activities to the Graduate School.

22 (B) NOT FEDERAL FUNDS.—Fees under sub23 paragraph (A) shall not be considered to be Fed24 eral funds and shall not required to be deposited

25 in the Treasury of the United States.
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1 (4) NAME.—The Graduate School shall operate

2 under the name ‘‘United States Department of Agri3 culture Graduate School’’ or such other name as the

4 Graduate School may adopt.

5 (d) GENERAL ADMINISTRATION BOARD.—

6 (1) APPOINTMENT.—The Secretary shall appoint

7 a General Administration Board to serve as a govern8 ing board subject to regulation by the Secretary.

9 (2) SUPERVISION.—The Graduate School shall be

10 subject to the supervision and direction of the Board.

11 (3) DUTIES.—The Board shall—

12 (A) formulate broad policies in accordance

13 with which the Graduate School shall be admin14 istered;

15 (B) take all steps necessary to see that the

16 highest possible educational standards are main17 tained;

18 (C) exercise general supervision over the ad19 ministration of the Graduate School; and

20 (D) establish such bylaws, rules, and proce21 dures as may be necessary for the fulfillment of

22 the duties described in subparagraph (A), (B),

23 and (C).

24 (4) DIRECTOR AND OTHER OFFICERS.—The

25 Board shall select the Director and such other officers
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1 as the Board may consider necessary, who shall serve

2 on such terms and perform such duties as the Board

3 may prescribe.

4 (5) BORROWING.—The Board may authorize the

5 Director to borrow money on the credit of the Grad6 uate School.

7 (e) DIRECTOR OF THE GRADUATE SCHOOL.—

8 (1) DUTIES.—The Director shall be responsible,

9 subject to the supervision and direction of the Board,

10 for carrying out the functions of the Graduate School.

11 (2) INVESTMENT OF FUNDS.—The Board may

12 authorize the Director to invest funds held in excess

13 of the current operating requirements of the Graduate

14 School for purposes of maintaining a reasonable re15 serve.

16 (f) LIABILITY.—The Director and the members of the

17 Board shall not be held personally liable for any loss or

18 damage that may accrue to the funds of the Graduate

19 School as the result of any act or exercise of discretion per20 formed in carrying out the duties described in this section.

21 (g) EMPLOYEES.—Employees of the Graduate School

22 are employees of a nonappropriated fund instrumentality

23 and shall not be considered to be Federal employees.
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1 (h) NOT A FEDERAL AGENCY.—The Graduate School

2 shall not be considered to be a Federal Agency for purposes

3 of—

4 (1) chapter 171 of title 28, United States Code;

5 (2) section 552 or 552a of title 28, United States

6 Code; or

7 (3) the Federal Advisory Committee Act (5

8 U.S.C. App.).

9 (i) ACCEPTANCE OF DONATIONS.—The Graduate

10 School shall not accept a donation from a person that is

11 actively engaged in a procurement activity with the Grad12 uate School or has an interest that may be substantially

13 affected by the performance or nonperformance of an official

14 duty of a member of the Board or an employee of the Grad15 uate School.

16 (j) ADMINISTRATIVE PROVISIONS.—In order to carry

17 out the functions of the Graduate School, the Graduate

18 School may—

19 (1) accept, use, hold, dispose, and administer

20 gifts, bequests, or devises of money, securities, and

21 other real or personal property made for the benefit

22 of, or in connection with, the Graduate School;

23 (2) notwithstanding any other law—
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1 (A) acquire real property in the District of

2 Columbia and in other places by lease, purchase,

3 or otherwise;

4 (B) maintain, enlarge, or remodel any such

5 property; and

6 (C) have sole control of any such property;

7 (3) enter into contracts without regard to the

8 Federal Property and Administrative Services Act of

9 1949 (40 U.S.C. 471) or any other law that prescribes

10 procedures for the procurement of property or services

11 by an executive agency;

12 (4) dispose of real and personal property without

13 regard to the requirements of the Federal Property

14 and Administrative Services Act of 1949 (40 U.S.C.

15 471); and

16 (5) use the facilities and resources of the Depart17 ment, on the condition that any costs incurred by the

18 Department that are attributable solely to Graduate

19 School operations and all costs incurred by the Grad20 uate School arising out of such operations shall be

21 borne by the fees paid by or on behalf of students or

22 by other means and not with Federal funds.

23 SEC. 549. STUDENT INTERN SUBSISTENCE PROGRAM.

24 (a) DEFINITION.—In this section, the term ‘‘student

25 intern’’ means a person who—
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1 (1) is employed by the Department of Agri2 culture to assist scientific, professional, administra3 tive, or technical employees of the Department; and

4 (2) is a student in good standing at an accred5 ited college or university pursuing a course of study

6 related to the field in which the person is employed

7 by the Department.

8 (b) PAYMENT OF CERTAIN EXPENSES BY THE SEC9 RETARY.—The Secretary of Agriculture may, out of user fee

10 funds or funds appropriated to any agency, pay for lodging

11 expenses, subsistence expenses, and transportation expenses

12 of a student intern (including expenses of transportation

13 to and from the student intern’s residence at or near the

14 college or university attended by the student intern and the

15 official duty station at which the student intern is em16 ployed).

17 SEC. 550. CONVEYANCE OF LAND TO WHITE OAK CEMETERY.

18 (a) IN GENERAL.—

19 (1) RELEASE OF INTEREST.—After execution of

20 the agreement described in subsection (b), the Sec21 retary of Agriculture shall release the condition stated

22 in the deed on the land described in subsection (c)

23 that the land be used for public purposes, and that if

24 the land is not so used, that the land revert the Unit25 ed States, on the condition that the land be used ex-
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1 clusively for cemetery purposes, and that if the land

2 is not so used, that the land revert the United States.

3 (2) BANKHEAD-JONES ACT.—Section 32(c) of the

4 Bankhead-Jones Farm Tenant Act (7 U.S.C. 1011(c))

5 shall not apply to the release under paragraph (1).

6 (b) AGREEMENT.—The Secretary of Agriculture shall

7 make the release under in subsection (a) on execution by

8 the Board of Trustees of the University of Arkansas, in con9 sideration of the release, of an agreement, satisfactory to

10 the Secretary of Agriculture, that—

11 (1) the Board of Trustees will not sell, lease, ex12 change, or otherwise dispose of the land described in

13 subsection (c) except to the White Oak Cemetery Asso14 ciation of Washington County, Arkansas, or a succes15 sor organization, for exclusive use for an expansion of

16 the cemetery maintained by the Association; and

17 (2) the proceeds of such a disposition of the land

18 will be deposited and held in an account open to in19 spection by the Secretary of Agriculture, and used, if

20 withdrawn from the account, for public purposes.

21 (c) LAND DESCRIPTION.—The land described in this

22 subsection is the land conveyed to the Board of Trustees of

23 the University of Arkansas, with certain other land, by deed

24 dated November 18, 1953, comprising approximately 2.2

25 acres located within property of the University of Arkansas
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1 in Washington, County, Arkansas, commonly known as the

2 ‘‘Savor property’’ and described as follows:

3 The part of Section 20, Township 17 north,

4 range 31 west, beginning at the north corner of the

5 White Oak Cemetery and the University of Arkansas

6 Agricultural Experiment Station farm at Washington

7 County road #874, running west approximately 330

8 feet, thence south approximately 135 feet, thence

9 southeast approximately 384 feet, thence north ap10 proximately 330 feet to the point of beginning.

11 SEC. 551. ADVISORY BOARD ON AGRICULTURAL AIR QUAL12 ITY.

13 (a) FINDINGS.—Congress finds that—

14 (1) various studies have identified agriculture as

15 a major atmospheric polluter;

16 (2) Federal research activities are underway to

17 determine the extent of the pollution problem and the

18 extent of the role of agriculture in the problem; and

19 (3) any Federal policy decisions that may result,

20 and any Federal regulations that may be imposed on

21 the agricultural sector, should be based on sound sci22 entific findings;

23 (b) PURPOSE.—The purpose of this section is to estab24 lish an advisory board to assist and provide the Secretary

25 of Agriculture with information, analyses, and policy rec-
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1 ommendations for determining matters of fact and technical

2 merit and addressing scientific questions dealing with par3 ticulate matter less than 10 microns that become lodged in

4 human lungs (known as ‘‘PM10’’) and other airborne par5 ticulate matter or gases that affect agricultural production

6 yields and the economy.

7 (c) ESTABLISHMENT.—

8 (1) IN GENERAL.—The Secretary of Agriculture

9 may establish a board to be known as the ‘‘Advisory

10 Board on Agricultural Air Quality’’ (referred to in

11 this section as the ‘‘Board’’) to advise the Secretary,

12 through the Chief of the Natural Resources Conserva13 tion Service, with respect to carrying out this act and

14 obligations agriculture incurred under the Clean Air

15 Act (42 U.S.C. 7401 et seq.) and the Act entitled ‘An

16 Act to amend the Clean Air Act to provide for attain17 ment and maintenance of health protective national

18 ambient air quality standards, and for other pur19 poses’, approved November 15, 1990 (commonly

20 known as the ‘Clean Air Act Amendments of 1990’)

21 (42 U.S.C. 7401 et seq.).

22 (2) OVERSIGHT COORDINATION.—The Secretary

23 of Agriculture shall provide oversight and coordina24 tion with respect to other Federal departments and

25 agencies to ensure intergovernmental cooperation in
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1 research activities and to avoid duplication of Federal

2 efforts.

3 (d) COMPOSITION.—

4 (1) IN GENERAL.—The Board shall be composed

5 of at least 17 members appointed by the Secretary in

6 consultation with the Administrator of the Environ7 mental Protection Agency.

8 (2) REGIONAL REPRESENTATION.—The member9 ship of the Board shall be 2 persons from each of the

10 6 regions of the Natural Resources Conservation Serv11 ice, of whom 1 from each region shall be an agricul12 tural producer.

13 (3) ATMOSPHERIC SCIENTIST.—At least 1 mem14 ber of the Board shall be an atmospheric scientist.

15 (e) CHAIRPERSON.—The Chief of the Natural Re16 sources Conservation Service shall—

17 (1) serve as chairman of the Board; and

18 (2) provide technical support to the Board.

19 (f) TERM.—Each member of the Board shall be ap20 pointed for a 3-year term, except that the Secretary of Agri21 culture shall appoint 4 of the initial members for a term

22 of 1 year and 4 for a term of 2 years.

23 (g) MEETINGS.—The Board shall meet not less than

24 twice annually.
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1 (h) COMPENSATION.—Members of the Board shall serve

2 without compensation, but while away from their homes or

3 regular place of business in performance of services for the

4 Board, members of the Board shall be allowed travel ex5 penses, including a per diem allowance in lieu of subsist6 ence, in the same manner as persons employed in Govern7 ment service are allowed travel expenses under section 5703

8 of title 5, United States Code.

9 (i) FUNDING.—The Board shall be funded using ap10 propriations for conservation operations.

11 SEC. 552. WATER SYSTEMS FOR RURAL AND NATIVE VIL12 LAGES IN ALASKA.

13 The Consolidated Farm and Rural Development Act

14 is amended by inserting after section 306C (7 U.S.C. 1926c)

15 the following:

16 ‘‘SEC. 306D. WATER SYSTEMS FOR RURAL AND NATIVE VIL17 LAGES IN ALASKA.

18 ‘‘(a) IN GENERAL.—The Secretary may make grants

19 to the State of Alaska for the benefit of rural or Native vil20 lages in Alaska to provide for the development and construc21 tion of water and wastewater systems to improve the health

22 and sanitation conditions in those villages.

23 ‘‘(b) MATCHING FUNDS.—To be eligible to receive a

24 grant under subsection (a), the State of Alaska shall provide

25 equal matching funds from non-Federal sources.
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1 ‘‘(c) CONSULTATION WITH THE STATE OF ALASKA.—

2 The Secretary shall consult with the State of Alaska on a

3 method of prioritizing the allocation of grants under sub4 section (a) according to the needs of, and relative health

5 and sanitation conditions in, each village.

6 ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There is

7 authorized to be appropriated to carry out this section

8 $15,000,000 for each of fiscal years 1996 through 2002.’’.

9 SEC. 553. ELIGIBILITY FOR GRANTS TO BROADCASTING SYS10 TEMS.

11 Section 310B(j) of the Consolidated Farm and Rural

12 Development Act (7 U.S.C. 1932(j)) is amended by striking

13 ‘‘SYSTEMS.—The’’ and inserting the following: ‘‘SYS14 TEMS.—

15 ‘‘(1) DEFINITION OF STATEWIDE.—In this sub16 section, the term ‘statewide’ means having a coverage

17 area of not less than 90 percent of the population of

18 a State and 80 percent of the rural land area of the

19 State (as determined by the Secretary).

20 ‘‘(2) GRANTS.—The’’.

21 SEC. 554. WILDLIFE HABITAT INCENTIVES PROGRAM.

22 (a) IN GENERAL.—The Secretary of Agriculture, in

23 consultation with the State Technical Committee, shall es24 tablish a program in the Natural Resources Conservation
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1 Service to be known as the Wildlife Habitat Incentive Pro2 gram.

3 (b) COST-SHARE PAYMENTS.—The Program shall

4 make cost-share payments to landowners to develop upland

5 wildlife, wetland wildlife, threatened and endangered spe6 cies, fisheries, and other types of wildlife habitat approved

7 by the Secretary.

8 (c) FUNDING.—To carry out this section, $10,000,000

9 shall be made available for each of fiscal years 1996 through

10 2002 from funds made available to carry out subchapter

11 B of chapter 1 of subtitle D of title XII of the Food Security

12 Act of 1985 (16 U.S.C. 3831 et seq.).

13 SEC. 555. INDIAN RESERVATIONS.

14 (a) INDIAN RESERVATION EXTENSION AGENT PRO15 GRAM.—

16 (1) REAUTHORIZATION.—The program estab17 lished under section 1677 of the Food, Agriculture,

18 Conservation, and Trade Act of 1990 (7 U.S.C. 5930)

19 is reauthorized through fiscal year 2002.

20 (2) REDUCED REGULATORY BURDEN.—On a de21 termination by the Secretary of Agriculture that a

22 program carried out under section 1677 of the Act (7

23 U.S.C. 5930) has been satisfactorily administered for

24 not less than 2 years, the Secretary shall implement

25 a reduced re-application process for the continued op-
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1 eration of the program in order to reduce regulatory

2 burdens on participating university and tribal enti3 ties.

4 (b) MEMORANDUM OF AGREEMENT.—

5 (1) IN GENERAL.—Not later than January 6,

6 1997, the Secretary shall develop and implement a

7 formal Memorandum of Agreement with the 29 trib8 ally controlled colleges eligible under Federal law to

9 receive funds from the Secretary of Agriculture as

10 partial land grant institutions.

11 (2) EQUITABLE PARTICIPATION.—The Memoran12 dum shall establish programs to ensure that tribally13 controlled colleges and Native American communities

14 equitably participate in Department of Agriculture

15 employment programs, services, and resources.

16 SEC. 556. ICD REIMBURSEMENT FOR OVERHEAD EXPENSES.

17 Section 1542(d)(1)(D) of the Food, Agriculture, Con18 servation, and Trade Act of 1990 (Public Law 101–624;7

19 U.S.C. 5622 note) is amended by adding at the end the fol20 lowing: ‘‘Notwithstanding any other provision of law, the

21 assistance shall include assistance for administrative and

22 overhead expenses, to the extent that the expenses were in23 curred pursuant to reimbursable agreements entered into

24 prior to September 30, 1993, the expenses do not exceed
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1 $2,000,000 per year, and the expenses were not incurred

2 for information technology systems.’’.

3 SEC. 557. CLARIFICATION OF EFFECT OF RESOURCE PLAN4 NING ON ALLOCATION OR USE OF WATER.

5 (a) NATIONAL FOREST SYSTEM RESOURCE PLAN6 NING.—Section 6 of the Forest and Rangeland Renewable

7 Resources Planning Act of 1974 (16 U.S.C. 1604) is amend8 ed by adding at the end the following new subsection:

9 ‘‘(n) LIMITATION ON AUTHORITY.—Nothing in this

10 section shall be construed to supersede, abrogate or otherwise

11 impair any right or authority of a State to allocate quan12 tities of water (including boundary waters). Nothing in this

13 section shall be implemented, enforced, or construed to allow

14 any officer or agency of the United States to utilize directly

15 or indirectly the authorities established under this section

16 to impose any requirement not imposed by the State which

17 would supersede, abrogate, or otherwise impair rights to the

18 use of water resources allocated under State law, interstate

19 water compact, or Supreme Court decree, or held by the

20 United States for use by a State, its political subdivisions,

21 or its citizens. No water rights arise in the United States

22 or any other person under the provisions of this Act.’’.

23 (b) AUTHORIZATION TO GRANT RIGHTS-OF-WAY.—

24 Section 501 of the Federal Land Policy and Management
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1 Act of 1976 (43 U.S.C. 1761) is amended as it applies to

2 the Secretary of Agriculture—

3 (1) in subsection (c)(1)—

4 (A) by striking subparagraph (B);

5 (B) in subparagraph (D), by striking

6 ‘‘originally constructed’’;

7 (C) in subparagraph (G), by striking

8 ‘‘1996’’ and inserting ‘‘1998’’; and

9 (D) by redesignating subparagraphs (C)

10 through (G) as subparagraphs (B) through (F),

11 respectively;

12 (2) in subsection (c)(3)(A), by striking the second

13 and third sentences; and

14 (3) by adding at the end the following new sub15 section:

16 ‘‘(e) EFFECT ON VALID EXISTING RIGHTS.—Notwith17 standing any provision of this section, the Secretary of Ag18 riculture may not require, as a condition of, or in connec19 tion with, the renewal of a right-of-way under this section,

20 a restriction or limitation on the operation, use, repair, or

21 replacement of an existing water supply facility which is

22 located on or above National Forest lands or the exercise

23 and use of existing water rights, if such condition would

24 reduce the quantity of water which would otherwise be made

25 available for use by the owner of such facility or water
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1 rights, or cause an increase in the cost of the water supply

2 provided from such facility.’’.

3 TITLE VI—CREDIT

4 Subtitle A—Agricultural Credit

5 CHAPTER 1—FARM OWNERSHIP LOANS

6 SEC. 601. LIMITATION ON DIRECT FARM OWNERSHIP

7 LOANS.

8 Section 302 of the Consolidated Farm and Rural De9 velopment Act (7 U.S.C. 1922) is amended by striking sub10 section (b) and inserting the following:

11 ‘‘(b) DIRECT LOANS.—

12 ‘‘(1) IN GENERAL.—Subject to paragraph (3), the

13 Secretary may only make a direct loan under this

14 subtitle to a farmer or rancher who has operated a

15 farm or ranch for not less than 3 years and—

16 ‘‘(A) is a qualified beginning farmer or

17 rancher;

18 ‘‘(B) has not received a previous direct farm

19 ownership loan made under this subtitle; or

20 ‘‘(C) has not received a direct farm owner21 ship loan under this subtitle more than 10 years

22 before the date the new loan would be made.

23 ‘‘(2) YOUTH LOANS.—The operation of an enter24 prise by a youth under section 311(b) shall not be
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1 considered the operation of a farm or ranch for pur2 poses of paragraph (1).

3 ‘‘(3) TRANSITION RULE.—

4 ‘‘(A) IN GENERAL.—Subject to subpara5 graphs (B) and (C), paragraph (1) shall not

6 apply to a farmer or rancher who has a direct

7 loan outstanding under this subtitle on the date

8 of enactment of this paragraph.

9 ‘‘(B) LESS THAN 5 YEARS.—If, as of the

10 date of enactment of this paragraph, a farmer or

11 rancher has had a direct loan outstanding under

12 this subtitle for less than 5 years, the Secretary

13 shall not make another loan to the farmer or

14 rancher under this subtitle after the date that is

15 10 years after the date of enactment of this para16 graph.

17 ‘‘(C) 5 YEARS OR MORE.—If, as of the date

18 of enactment of this paragraph, a farmer or

19 rancher has had a direct loan outstanding under

20 this subtitle for 5 years or more, the Secretary

21 shall not make another loan to the farmer or

22 rancher under this subtitle after the date that is

23 5 years after the date of enactment of this para24 graph.’’.
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1 SEC. 602. PURPOSES OF LOANS.

2 Section 303 of the Consolidated Farm and Rural De3 velopment Act (7 U.S.C. 1923) is amended to read as fol4 lows:

5 ‘‘SEC. 303. PURPOSES OF LOANS.

6 ‘‘(a) ALLOWED PURPOSES.—

7 ‘‘(1) DIRECT LOANS.—A farmer or rancher may

8 use a direct loan made under this subtitle only for—

9 ‘‘(A) acquiring or enlarging a farm or

10 ranch;

11 ‘‘(B) making capital improvements to a

12 farm or ranch;

13 ‘‘(C) paying loan closing costs related to ac14 quiring, enlarging, or improving a farm or

15 ranch; or

16 ‘‘(D) paying for activities to promote soil

17 and water conservation and protection under

18 section 304 on the farm or ranch.

19 ‘‘(2) GUARANTEED LOANS.—A farmer or rancher

20 may use a loan guaranteed under this subtitle only

21 for—

22 ‘‘(A) acquiring or enlarging a farm or

23 ranch;

24 ‘‘(B) making capital improvements to a

25 farm or ranch;
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1 ‘‘(C) paying loan closing costs related to ac2 quiring, enlarging, or improving a farm or

3 ranch;

4 ‘‘(D) paying for activities to promote soil

5 and water conservation and protection under

6 section 304 on the farm or ranch; or

7 ‘‘(E) refinancing indebtedness.

8 ‘‘(b) PREFERENCES.—In making or guaranteeing a

9 loan for farm or ranch purchase, the Secretary shall give

10 a preference to a person who—

11 ‘‘(1) has a dependent family;

12 ‘‘(2) to the extent practicable, is able to make an

13 initial down payment; or

14 ‘‘(3) is an owner of livestock or farm or ranch

15 equipment that is necessary to successfully carry out

16 farming or ranching operations.

17 ‘‘(c) HAZARD INSURANCE REQUIREMENT.—

18 ‘‘(1) IN GENERAL.—The Secretary may not make

19 a loan to a farmer or rancher under this subtitle un20 less the farmer or rancher has, or agrees to obtain,

21 hazard insurance on any real property to be acquired

22 or improved with the loan.

23 ‘‘(2) DETERMINATION.—Not later than 180 days

24 after the date of enactment of this subsection, the Sec-
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1 retary shall determine the appropriate level of insur2 ance to be required under paragraph (1).

3 ‘‘(3) TRANSITIONAL PROVISION.—Paragraph (1)

4 shall not apply until the Secretary makes the deter5 mination required under paragraph (2).’’.

6 SEC. 603. SOIL AND WATER CONSERVATION AND PROTEC7 TION.

8 Section 304 of the Consolidated Farm and Rural De9 velopment Act (7 U.S.C. 1924) is amended—

10 (1) by striking subsections (b) and (c);

11 (2) by striking ‘‘SEC. 304. (a)(1) Loans’’ and in12 serting the following:

13 ‘‘SEC. 304. SOIL AND WATER CONSERVATION AND PROTEC14 TION.

15 ‘‘(a) IN GENERAL.—Loans’’;

16 (3) by striking ‘‘(2) In making or insuring’’ and

17 inserting the following:

18 ‘‘(b) PRIORITY.—In making or guaranteeing’’;

19 (4) by striking ‘‘(3) The Secretary’’ and insert20 ing the following:

21 ‘‘(c) LOAN MAXIMUM.—The Secretary’’;

22 (5) by redesignating subparagraphs (A) through

23 (F) of subsection (a) (as amended by paragraph (2))

24 as paragraphs (1) through (6), respectively; and
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1 (6) by redesignating subparagraphs (A) and (B)

2 of subsection (c) (as amended by paragraph (4)) as

3 paragraphs (1) and (2), respectively.

4 SEC. 604. INTEREST RATE REQUIREMENTS.

5 Section 307(a)(3) of the Consolidated Farm and Rural

6 Development Act (7 U.S.C. 1927(a)(3)) is amended—

7 (1) in subparagraph (B), by inserting ‘‘subpara8 graph (D) and in’’ after ‘‘Except as provided in’’;

9 and

10 (2) by adding at the end the following:

11 ‘‘(D) JOINT FINANCING ARRANGEMENT.—If a di12 rect farm ownership loan is made under this subtitle

13 as part of a joint financing arrangement and the

14 amount of the direct farm ownership loan does not ex15 ceed 50 percent of the total principal amount fi16 nanced under the arrangement, the interest rate on

17 the direct farm ownership loan shall be 4 percent an18 nually.’’.

19 SEC. 605. INSURANCE OF LOANS.

20 Section 308 of the Consolidated Farm and Rural De21 velopment Act (7 U.S.C. 1928) is amended to read as fol22 lows:

23 ‘‘SEC. 308. FULL FAITH AND CREDIT.

24 ‘‘(a) IN GENERAL.—A contract of insurance or guar25 antee executed by the Secretary under this title shall be an
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1 obligation supported by the full faith and credit of the Unit2 ed States.

3 ‘‘(b) CONTESTABILITY.—A contract of insurance or

4 guarantee executed by the Secretary under this title shall

5 be incontestable except for fraud or misrepresentation that

6 the lender or any holder—

7 ‘‘(1) has actual knowledge of at the time the con8 tract or guarantee is executed; or

9 ‘‘(2) participates in or condones.’’.

10 SEC. 606. LOANS GUARANTEED.

11 Section 309(h) of the Consolidated Farm and Rural

12 Development Act (7 U.S.C. 1929(h)) is amended by adding

13 at the end the following:

14 ‘‘(4) MAXIMUM GUARANTEE OF 90 PERCENT.—

15 Except as provided in paragraph (5), a loan guaran16 tee under this title shall be for not more than 90 per17 cent of the principal and interest due on the loan.

18 ‘‘(5) REFINANCED LOANS GUARANTEED AT 95

19 PERCENT.—The Secretary shall guarantee 95 percent

20 of—

21 ‘‘(A) in the case of a loan that solely refi22 nances a direct loan made under this title, the

23 principal and interest due on the loan on the

24 date of the refinancing; or
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1 ‘‘(B) in the case of a loan that is used for

2 multiple purposes, the portion of the loan that

3 refinances the principal and interest due on a

4 direct loan made under this title that is out5 standing on the date the loan is guaranteed.

6 ‘‘(6) BEGINNING FARMER LOANS GUARANTEED

7 UP TO 95 PERCENT.—The Secretary may guarantee

8 up to 95 percent of—

9 ‘‘(A) a farm ownership loan for acquiring a

10 farm or ranch to a borrower who is participat11 ing in the down payment loan program under

12 section 310E; or

13 ‘‘(B) an operating loan to a borrower who

14 is participating in the down payment loan pro15 gram under section 310E that is made during

16 the period that the borrower has a direct loan for

17 acquiring a farm or ranch.’’.

18 CHAPTER 2—OPERATING LOANS

19 SEC. 611. LIMITATION ON DIRECT OPERATING LOANS.

20 (a) IN GENERAL.—Section 311 of the Consolidated

21 Farm and Rural Development Act (7 U.S.C. 1941) is

22 amended by striking subsection (c) and inserting the follow23 ing:

24 ‘‘(c) DIRECT LOANS.—
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1 ‘‘(1) IN GENERAL.—Subject to paragraph (3), the

2 Secretary may only make a direct loan under this

3 subtitle to a farmer or rancher who—

4 ‘‘(A) is a qualified beginning farmer or

5 rancher who has not operated a farm or ranch,

6 or who has operated a farm or ranch for not

7 more than 5 years;

8 ‘‘(B) has not had a previous direct operat9 ing loan under this subtitle; or

10 ‘‘(C) has not had a previous direct operat11 ing loan under this subtitle for more than 7

12 years.

13 ‘‘(2) YOUTH LOANS.—In this subsection, the

14 term ‘direct operating loan’ shall not include a loan

15 made to a youth under subsection (b).

16 ‘‘(3) TRANSITION RULE.—If, as of the date of en17 actment of this paragraph, a farmer or rancher has

18 received a direct operating loan under this subtitle

19 during each of 4 or more previous years, the borrower

20 shall be eligible to receive a direct operating loan

21 under this subtitle during 3 additional years after the

22 date of enactment of this paragraph.’’.

23 (b) YOUTH ENTERPRISES NOT FARMING OR RANCH24 ING.—Section 311(b) of the Consolidated Farm and Rural
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1 Development Act (7 U.S.C. 1941(b)) is amended by adding

2 at the end the following:

3 ‘‘(4) YOUTH ENTERPRISES NOT FARMING OR

4 RANCHING.—The operation of an enterprise by a

5 youth under this subsection shall not be considered the

6 operation of a farm or ranch under this title.’’.

7 SEC. 612. PURPOSES OF OPERATING LOANS.

8 Section 312 of the Consolidated Farm and Rural De9 velopment Act (7 U.S.C. 1942) is amended to read as fol10 lows:

11 ‘‘SEC. 312. PURPOSES OF LOANS.

12 ‘‘(a) IN GENERAL.—A direct loan may be made under

13 this subtitle only for—

14 ‘‘(1) paying the costs incident to reorganizing a

15 farming or ranching system for more profitable oper16 ation;

17 ‘‘(2) purchasing livestock, poultry, or farm or

18 ranch equipment;

19 ‘‘(3) purchasing feed, seed, fertilizer, insecticide,

20 or farm or ranch supplies, or to meet other essential

21 farm or ranch operating expenses, including cash

22 rent;

23 ‘‘(4) financing land or water development, use,

24 or conservation;

25 ‘‘(5) paying loan closing costs;
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1 ‘‘(6) assisting a farmer or rancher in effecting

2 an addition to, or alteration of, the equipment, facili3 ties, or methods of operation of a farm or ranch to

4 comply with a standard promulgated under section 6

5 of the Occupational Safety and Health Act of 1970

6 (29 U.S.C. 655) or a standard adopted by a State

7 under a plan approved under section 18 of the Act

8 (29 U.S.C. 667), if the Secretary determines that

9 without assistance under this paragraph the farmer

10 or rancher is likely to suffer substantial economic in11 jury due to compliance with the standard;

12 ‘‘(7) training a limited-resource borrower receiv13 ing a loan under section 310D in maintaining

14 records of farming and ranching operations;

15 ‘‘(8) training a borrower under section 359;

16 ‘‘(9) refinancing the indebtedness of a borrower

17 if the borrower—

18 ‘‘(A) has refinanced a loan under this sub19 title not more than 4 times previously; and

20 ‘‘(B)(i) is a direct loan borrower under this

21 title at the time of the refinancing and has suf22 fered a qualifying loss because of a natural dis23 aster declared by the Secretary under this title or

24 a major disaster or emergency designated by the

25 President under the Robert T. Stafford Disaster
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1 Relief and Emergency Assistance Act (42 U.S.C.

2 5121 et seq.); or

3 ‘‘(ii) is refinancing a debt obtained from a

4 creditor other than the Secretary; or

5 ‘‘(10) providing other farm, ranch, or home

6 needs, including family subsistence.

7 ‘‘(b) GUARANTEED LOANS.—A loan may be guaran8 teed under this subtitle only for—

9 ‘‘(1) paying the costs incident to reorganizing a

10 farming or ranching system for more profitable oper11 ation;

12 ‘‘(2) purchasing livestock, poultry, or farm or

13 ranch equipment;

14 ‘‘(3) purchasing feed, seed, fertilizer, insecticide,

15 or farm or ranch supplies, or to meet other essential

16 farm or ranch operating expenses, including cash

17 rent;

18 ‘‘(4) financing land or water development, use,

19 or conservation;

20 ‘‘(5) refinancing indebtedness;

21 ‘‘(6) paying loan closing costs;

22 ‘‘(7) assisting a farmer or rancher in effecting

23 an addition to, or alteration of, the equipment, facili24 ties, or methods of operation of a farm or ranch to

25 comply with a standard promulgated under section 6
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1 of the Occupational Safety and Health Act of 1970

2 (29 U.S.C. 655) or a standard adopted by a State

3 under a plan approved under section 18 of the Act

4 (29 U.S.C. 667), if the Secretary determines that

5 without assistance under this paragraph the farmer

6 or rancher is likely to suffer substantial economic in7 jury due to compliance with the standard;

8 ‘‘(8) training a borrower under section 359; or

9 ‘‘(9) providing other farm, ranch, or home needs,

10 including family subsistence.

11 ‘‘(c) HAZARD INSURANCE REQUIREMENT.—

12 ‘‘(1) IN GENERAL.—The Secretary may not make

13 a loan to a farmer or rancher under this subtitle un14 less the farmer or rancher has, or agrees to obtain,

15 hazard insurance on any property to be acquired

16 with the loan.

17 ‘‘(2) DETERMINATION.—Not later than 180 days

18 after the date of enactment of this paragraph, the Sec19 retary shall determine the appropriate level of insur20 ance to be required under paragraph (1).

21 ‘‘(3) TRANSITIONAL PROVISION.—Paragraph (1)

22 shall not apply until the Secretary makes the deter23 mination required under paragraph (2).

24 ‘‘(d) PRIVATE RESERVE.—
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1 ‘‘(1) IN GENERAL.—Notwithstanding any other

2 provision of this title, the Secretary may reserve the

3 lesser of 10 percent or $5,000 of the amount of a di4 rect loan made under this subtitle, to be placed in a

5 nonsupervised bank account that may be used at the

6 discretion of the borrower for any necessary family

7 living need or purpose that is consistent with any

8 farming or ranching plan agreed to by the Secretary

9 and the borrower prior to the date of the loan.

10 ‘‘(2) ADJUSTMENT OF RESERVE.—If a borrower

11 exhausts the amount of funds reserved under para12 graph (1), the Secretary may—

13 ‘‘(A) review and adjust the farm or ranch

14 plan referred to in paragraph (1) with the bor15 rower and reschedule the loan;

16 ‘‘(B) extend additional credit;

17 ‘‘(C) use income proceeds to pay necessary

18 farm, ranch, home, or other expenses; or

19 ‘‘(D) provide additional available loan serv20 icing.’’.

21 SEC. 613. PARTICIPATION IN LOANS.

22 Section 315 of the Consolidated Farm and Rural De23 velopment Act (7 U.S.C. 1945) is repealed.
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1 SEC. 614. LINE-OF-CREDIT LOANS.

2 Section 316 of the Consolidated Farm and Rural De3 velopment Act (7 U.S.C. 1946) is amended by adding at

4 the end the following:

5 ‘‘(c) LINE-OF-CREDIT LOANS.—

6 ‘‘(1) IN GENERAL.—A loan made or guaranteed

7 by the Secretary under this subtitle may be in the

8 form of a line-of-credit loan.

9 ‘‘(2) TERM.—A line-of-credit loan under para10 graph (1) shall terminate not later than 5 years after

11 the date that the loan is made or guaranteed.

12 ‘‘(3) ELIGIBILITY.—For purposes of determining

13 eligibility for a farm operating loan, each year in

14 which a farmer or rancher takes an advance or draws

15 on a line-of-credit loan the farmer or rancher shall be

16 considered to have received an operating loan for 1

17 year.’’.

18 SEC. 615. INSURANCE OF OPERATING LOANS.

19 Section 317 of the Consolidated Farm and Rural De20 velopment Act (7 U.S.C. 1947) is repealed.

21 SEC. 616. SPECIAL ASSISTANCE FOR BEGINNING FARMERS

22 AND RANCHERS.

23 (a) IN GENERAL.—Section 318 of the Consolidated

24 Farm and Rural Development Act (7 U.S.C. 1948) is re25 pealed.
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1 (b) CONFORMING AMENDMENT.—Section 310F of the

2 Consolidated Farm and Rural Development Act (7 U.S.C.

3 1936) is repealed.

4 SEC. 617. LIMITATION ON PERIOD FOR WHICH BORROWERS

5 ARE ELIGIBLE FOR GUARANTEED ASSIST6 ANCE.

7 Section 319 of the Consolidated Farm and Rural De8 velopment Act (7 U.S.C. 1949) is amended by striking sub9 section (b) and inserting the following:

10 ‘‘(b) LIMITATION ON PERIOD BORROWERS ARE ELIGI11 BLE FOR GUARANTEED ASSISTANCE.—

12 ‘‘(1) GENERAL RULE.—Subject to paragraph (2),

13 the Secretary shall not guarantee a loan under this

14 subtitle for a borrower for any year after the 15th

15 year that a loan is made to, or a guarantee is pro16 vided with respect to, the borrower under this subtitle.

17 ‘‘(2) TRANSITION RULE.—If, as of October 28,

18 1992, a farmer or rancher has received a direct or

19 guaranteed operating loan under this subtitle during

20 each of 10 or more previous years, the borrower shall

21 be eligible to receive a guaranteed operating loan

22 under this subtitle during 5 additional years after

23 October 28, 1992.’’.
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1 CHAPTER 3—EMERGENCY LOANS

2 SEC. 621. HAZARD INSURANCE REQUIREMENT.

3 Section 321 of the Consolidated Farm and Rural De4 velopment Act (7 U.S.C. 1961) is amended by striking sub5 section (b) and inserting the following:

6 ‘‘(b) HAZARD INSURANCE REQUIREMENT.—

7 ‘‘(1) IN GENERAL.—The Secretary may not make

8 a loan to a farmer or rancher under this subtitle to

9 cover a property loss unless the farmer or rancher had

10 hazard insurance that insured the property at the

11 time of the loss.

12 ‘‘(2) DETERMINATION.—Not later than 180 days

13 after the date of enactment of this paragraph, the Sec14 retary shall determine the appropriate level of insur15 ance to be required under paragraph (1).

16 ‘‘(3) TRANSITIONAL PROVISION.—Paragraph (1)

17 shall not apply until the Secretary makes the deter18 mination required under paragraph (2).’’.

19 SEC. 622. MAXIMUM EMERGENCY LOAN INDEBTEDNESS.

20 Section 324 of the Consolidated Farm and Rural De21 velopment Act (7 U.S.C. 1964) is amended by striking

22 ‘‘SEC. 324. (a) No loan’’ and all that follows through the

23 end of subsection (a) and inserting the following:
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1 ‘‘SEC. 324. TERMS OF LOANS.

2 ‘‘(a) MAXIMUM AMOUNT OF LOAN.—The Secretary

3 may not make a loan under this subtitle that—

4 ‘‘(1) exceeds the actual loss caused by a disaster;

5 or

6 ‘‘(2) would cause the total indebtedness of the

7 borrower under this subtitle to exceed $500,000.’’.

8 SEC. 623. INSURANCE OF EMERGENCY LOANS.

9 Section 328 of the Consolidated Farm and Rural De10 velopment Act (7 U.S.C. 1968) is repealed.

11 CHAPTER 4—ADMINISTRATIVE

12 PROVISIONS

13 SEC. 631. USE OF COLLECTION AGENCIES.

14 Section 331 of the Consolidated Farm and Rural De15 velopment Act (7 U.S.C. 1981) is amended by adding at

16 the end the following:

17 ‘‘(d) PRIVATE COLLECTION AGENCY.—The Secretary

18 may use a private collection agency to collect a claim or

19 obligation described in subsection (b)(5).’’.

20 SEC. 632. NOTICE OF LOAN SERVICE PROGRAMS.

21 Section 331D(a) of the Consolidated Farm and Rural

22 Development Act (7 U.S.C. 1981d(a)) is amended by strik23 ing ‘‘180 days delinquent in’’ and inserting ‘‘90 days past

24 due on’’.
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1 SEC. 633. SALE OF PROPERTY.

2 Section 335 of the Consolidated Farm and Rural De3 velopment Act (7 U.S.C. 1985) is amended—

4 (1) in subsection (b), by striking ‘‘subsection (e)’’

5 and inserting ‘‘subsections (c) and (e)’’;

6 (2) by striking subsection (c) and inserting the

7 following:

8 ‘‘(c) SALE OF PROPERTY.—

9 ‘‘(1) IN GENERAL.—Subject to this subsection

10 and subsection (e)(1)(A), the Secretary shall offer to

11 sell real property that is acquired by the Secretary

12 under this title in the following order and method of

13 sale:

14 ‘‘(A) ADVERTISEMENT.—Not later than 15

15 days after acquiring real property, the Secretary

16 shall publicly advertise the property for sale.

17 ‘‘(B) BEGINNING FARMER OR RANCHER.—

18 ‘‘(i) IN GENERAL.—Not later than 75

19 days after acquiring real property, the Sec20 retary shall attempt to sell the property to

21 a qualified beginning farmer or rancher at

22 current market value based on a current ap23 praisal.

24 ‘‘(ii) RANDOM SELECTION.—If more

25 than 1 qualified beginning farmer or ranch26 er offers to purchase the property, the Sec-
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1 retary shall select between the qualified ap2 plicants on a random basis.

3 ‘‘(iii) APPEAL OF RANDOM SELEC4 TION.—A random selection or denial by the

5 Secretary of a beginning farmer or rancher

6 for farm inventory property under this sub7 paragraph shall be final and not adminis8 tratively appealable.

9 ‘‘(C) PUBLIC SALE.—If no acceptable offer

10 is received from a qualified beginning farmer or

11 rancher under subparagraph (B) within 75 days

12 of acquiring the real property, the Secretary

13 shall, within 30 days, sell the property after pub14 lic notice at a public sale, and, if no acceptable

15 bid is received, by negotiated sale, at the best

16 price obtainable.

17 ‘‘(2) TRANSITIONAL RULES.—

18 ‘‘(A) PREVIOUS LEASE.—In the case of real

19 property acquired prior to the date of enactment

20 of this subparagraph that the Secretary leased

21 prior to the date of enactment of this subpara22 graph, the Secretary shall offer to sell the prop23 erty according to paragraph (1) not later than

24 60 days after the lease expires.
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1 ‘‘(B) PREVIOUSLY IN INVENTORY.—In the

2 case of real property acquired prior to the date

3 of enactment of this subparagraph that the Sec4 retary has not leased, the Secretary shall offer to

5 sell the property according to paragraph (1) not

6 later than 60 days after the date of enactment of

7 this subparagraph.

8 ‘‘(3) INTEREST.—

9 ‘‘(A) IN GENERAL.—Subject to subpara10 graph (B), any conveyance under this subsection

11 shall include all of the interest of the United

12 States, including mineral rights.

13 ‘‘(B) CONSERVATION.—The Secretary may

14 for conservation purposes grant or sell an ease15 ment, restriction, development right, or similar

16 legal right to a State, a political subdivision of

17 a State, or a private nonprofit organization sep18 arately from the underlying fee or other rights

19 owned by the Secretary.

20 ‘‘(4) OTHER LAW.—This title shall not be subject

21 to the Federal Property and Administrative Services

22 Act of 1949 (40 U.S.C. 471 et seq.).

23 ‘‘(5) LEASE OF PROPERTY.—
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1 ‘‘(A) IN GENERAL.—Subject to subpara2 graph (B), the Secretary may not lease any real

3 property acquired under this title.

4 ‘‘(B) EXCEPTION.—

5 ‘‘(i) BEGINNING FARMER OR RANCH6 ER.—Notwithstanding paragraph (1), the

7 Secretary may lease or contract to sell a

8 farm or ranch acquired by the Secretary

9 under this title to a beginning farmer or

10 rancher if the beginning farmer or rancher

11 qualifies for a credit sale or direct farm

12 ownership loan but credit sale authority for

13 loans or direct farm ownership funds, re14 spectively, are not available.

15 ‘‘(ii) TERM.—A lease or contract to sell

16 to a beginning farmer or rancher under

17 clause (i) shall be until the earlier of—

18 ‘‘(I) the date that is 18 months

19 after the date of the lease or sale; or

20 ‘‘(II) the date that direct farm

21 ownership loan funds or credit sale au22 thority for loans become available to

23 the beginning farmer or rancher.

24 ‘‘(iii) INCOME-PRODUCING CAPABIL25 ITY.—In determining the rental rate on real
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1 property leased under this subparagraph,

2 the Secretary shall consider the income-pro3 ducing capability of the property during the

4 term that the property is leased.

5 ‘‘(6) DETERMINATION BY SECRETARY.—

6 ‘‘(A) EXPEDITED REVIEW.—On the request

7 of an applicant, the Secretary shall provide

8 within 30 days of denial of the applicant’s ap9 plication for an expedited review by the appro10 priate State Director of whether the applicant is

11 a beginning farmer or rancher for the purpose of

12 acquiring farm inventory property.

13 ‘‘(B) APPEAL.—The results of a review con14 ducted by a State Director under subparagraph

15 (A) shall be final and not administratively ap16 pealable.

17 ‘‘(C) EFFECTS OF REVIEW.—

18 ‘‘(i) IN GENERAL.—The Secretary shall

19 maintain statistical data on the number

20 and results of reviews conducted under sub21 paragraph (A) and whether the reviews ad22 versely impact on—

23 ‘‘(I) selling farm inventory prop24 erty to beginning farmers and ranch25 ers; and
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1 ‘‘(II) disposing of real property in

2 inventory.

3 ‘‘(ii) NOTIFICATION.—The Secretary

4 shall notify the Committee on Agriculture of

5 the House of Representatives and the Com6 mittee on Agriculture, Nutrition, and For7 estry of the Senate if the Secretary deter8 mines that reviews under subparagraph (A)

9 are adversely impacting the selling of farm

10 inventory property to beginning farmers or

11 ranchers or on disposing of real property in

12 inventory.’’; and

13 (3) in subsection (e)—

14 (A) in paragraph (1)—

15 (i) by striking subparagraphs (A)

16 through (C);

17 (ii) by redesignating subparagraphs

18 (D) through (G) as subparagraphs (A)

19 through (D), respectively;

20 (iii) in subparagraph (A) (as redesig21 nated by clause (ii))—

22 (I) in clause (i)—

23 (aa) in the matter preceding

24 subclause (I), by striking ‘‘(G)’’

25 and inserting ‘‘(D)’’;
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1 (bb) by striking subclause (I)

2 and inserting the following:

3 ‘‘(I) the Secretary acquires property under this

4 title that is located within an Indian reservation;

5 and’’;

6 (cc) in subclause (II), by

7 striking ‘‘, and’’ at the end and

8 inserting a semicolon; and

9 (dd) by striking subclause

10 (III); and

11 (II) in clause (iii), by striking

12 ‘‘The Secretary shall’’ and all that fol13 lows through ‘‘of subparagraph (A),’’

14 and inserting ‘‘Not later than 90 days

15 after acquiring the property, the Sec16 retary shall’’; and

17 (iv) in subparagraph (D) (as redesig18 nated by clause (ii))—

19 (I) in clause (i), by striking

20 ‘‘(D)’’ in the matter following

21 subclause (IV) and inserting ‘‘(A)’’;

22 (II) in clause (iii)(I), by striking

23 ‘‘subparagraphs (C)(i), (C)(ii), and

24 (D)’’ and inserting ‘‘subparagraph

25 (A)’’; and
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1 (III) by striking clause (v) and

2 inserting the following:

3 ‘‘(v) FORECLOSURE PROCEDURES.—

4 ‘‘(I) NOTICE TO BORROWER.—If a

5 borrower-owner does not voluntarily

6 convey to the Secretary real property

7 described in clause (i), not less than 30

8 days before a foreclosure sale of the

9 property the Secretary shall provide

10 the Indian borrower-owner with the

11 option of—

12 ‘‘(aa) requiring the Secretary

13 to assign the loan and security in14 struments to the Secretary of the

15 Interior, provided the Secretary of

16 the Interior agrees to the assign17 ment, releasing the Secretary of

18 Agriculture from all further re19 sponsibility for collection of any

20 amounts with regard to the loan

21 secured by the real property; or

22 ‘‘(bb) requiring the Secretary

23 to assign the loan and security in24 struments to the tribe having ju25 risdiction over the reservation in
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1 which the real property is located,

2 provided the tribe agrees to the as3 signment.

4 ‘‘(II) NOTICE TO TRIBE.—If a

5 borrower-owner does not voluntarily

6 convey to the Secretary real property

7 described in clause (i), not less than 30

8 days before a foreclosure sale of the

9 property the Secretary shall provide

10 written notice to the Indian tribe that

11 has jurisdiction over the reservation in

12 which the real property is located of—

13 ‘‘(aa) the sale;

14 ‘‘(bb) the fair market value of

15 the property; and

16 ‘‘(cc) the requirements of this

17 subparagraph.

18 ‘‘(III) ASSUMED LOANS.—If an

19 Indian tribe assumes a loan under

20 subclause (I)—

21 ‘‘(aa) the Secretary shall not

22 foreclose the loan because of any

23 default that occurred prior to the

24 date of the assumption;
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1 ‘‘(bb) the loan shall be for the

2 lesser of the outstanding principal

3 and interest of the loan or the fair

4 market value of the property; and

5 ‘‘(cc) the loan shall be treated

6 as though the loan was made

7 under Public Law 91–229 (25

8 U.S.C. 488 et seq.).’’;

9 (B) by striking paragraph (3);

10 (C) in paragraph (4)—

11 (i) by striking subparagraph (B);

12 (ii) in subparagraph (A)—

13 (I) in clause (i), by striking ‘‘(i)’’;

14 and

15 (II) by redesignating clause (ii)

16 as subparagraph (B); and

17 (iii) in subparagraph (B) (as redesig18 nated by clause (ii)(II)), by striking ‘‘clause

19 (i)’’ and inserting ‘‘subparagraph (A)’’;

20 (D) by striking paragraph (5);

21 (E) by striking paragraph (6);

22 (F) by redesignating paragraph (4) as

23 paragraph (3); and
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1 (G) by redesignating paragraphs (7)

2 through (10) as paragraphs (4) through (7), re3 spectively.

4 SEC. 634. DEFINITIONS.

5 Section 343(a) of the Consolidated Farm and Rural

6 Development Act (7 U.S.C. 1991(a)) is amended—

7 (1) in paragraph (11)—

8 (A) in the text preceding subparagraph (A),

9 by striking ‘‘applicant—’’ and inserting ‘‘appli10 cant, regardless of whether participating in a

11 program under section 310E—’’; and

12 (B) in subparagraph (F)—

13 (i) by striking ‘‘15 percent’’ and in14 serting ‘‘35 percent’’; and

15 (ii) by inserting before the semicolon at

16 the end the following: ‘‘, except that this

17 subparagraph shall not apply to loans

18 under subtitle B’’; and

19 (2) by adding at the end the following:

20 ‘‘(12) DEBT FORGIVENESS.—

21 ‘‘(A) IN GENERAL.—The term ‘debt forgive22 ness’ means reducing or terminating a farm loan

23 made or guaranteed under this title, in a man24 ner that results in a loss to the Secretary,

25 through—
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1 ‘‘(i) writing-down or writing-off a loan

2 under section 353;

3 ‘‘(ii) compromising, adjusting, reduc4 ing, or charging-off a debt or claim under

5 section 331;

6 ‘‘(iii) paying a loss on a guaranteed

7 loan under section 357; or

8 ‘‘(iv) discharging a debt as a result of

9 bankruptcy.

10 ‘‘(B) LOAN RESTRUCTURING.—The term

11 ‘debt forgiveness’ does not include consolidation,

12 rescheduling, reamortization, or deferral.’’.

13 SEC. 635. AUTHORIZATION FOR LOANS.

14 Section 346 of the Consolidated Farm and Rural De15 velopment Act (7 U.S.C. 1994) is amended—

16 (1) in the second sentence of subsection (a), by

17 striking ‘‘with or without’’ and all that follows

18 through ‘‘administration’’ and inserting the following:

19 ‘‘without authority for the Secretary to transfer

20 amounts between the categories’’; and

21 (2) by striking subsection (b) and inserting the

22 following:

23 ‘‘(b) AUTHORIZATION FOR LOANS.—

24 ‘‘(1) IN GENERAL.—The Secretary may make or

25 guarantee loans under subtitles A and B from the Ag-
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1 ricultural Credit Insurance Fund established under

2 section 309 in not more than the following amounts:

3 ‘‘(A) FISCAL YEAR 1996.—For fiscal year

4 1996, $3,085,000,000, of which—

5 ‘‘(i) $585,000,000 shall be for direct

6 loans, of which—

7 ‘‘(I) $85,000,000 shall be for farm

8 ownership loans under subtitle A; and

9 ‘‘(II) $500,000,000 shall be for op10 erating loans under subtitle B; and

11 ‘‘(ii) $2,500,000,000 shall be for guar12 anteed loans, of which—

13 ‘‘(I) $600,000,000 shall be for

14 farm ownership loans under subtitle A;

15 and

16 ‘‘(II) $1,900,000,000 shall be for

17 operating loans under subtitle B.

18 ‘‘(B) FISCAL YEAR 1997.—For fiscal year

19 1997, $3,165,000,000, of which—

20 ‘‘(i) $585,000,000 shall be for direct

21 loans, of which—

22 ‘‘(I) $85,000,000 shall be for farm

23 ownership loans under subtitle A; and

24 ‘‘(II) $500,000,000 shall be for op25 erating loans under subtitle B; and
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1 ‘‘(ii) $2,580,000,000 shall be for guar2 anteed loans, of which—

3 ‘‘(I) $630,000,000 shall be for

4 farm ownership loans under subtitle A;

5 and

6 ‘‘(II) $1,950,000,000 shall be for

7 operating loans under subtitle B.

8 ‘‘(C) FISCAL YEAR 1998.—For fiscal year

9 1998, $3,245,000,000, of which—

10 ‘‘(i) $585,000,000 shall be for direct

11 loans, of which—

12 ‘‘(I) $85,000,000 shall be for farm

13 ownership loans under subtitle A; and

14 ‘‘(II) $500,000,000 shall be for op15 erating loans under subtitle B; and

16 ‘‘(ii) $2,660,000,000 shall be for guar17 anteed loans, of which—

18 ‘‘(I) $660,000,000 shall be for

19 farm ownership loans under subtitle A;

20 and

21 ‘‘(II) $2,000,000,000 shall be for

22 operating loans under subtitle B.

23 ‘‘(D) FISCAL YEAR 1999.—For fiscal year

24 1999, $3,325,000,000, of which—
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1 ‘‘(i) $585,000,000 shall be for direct

2 loans, of which—

3 ‘‘(I) $85,000,000 shall be for farm

4 ownership loans under subtitle A; and

5 ‘‘(II) $500,000,000 shall be for op6 erating loans under subtitle B; and

7 ‘‘(ii) $2,740,000,000 shall be for guar8 anteed loans, of which—

9 ‘‘(I) $690,000,000 shall be for

10 farm ownership loans under subtitle A;

11 and

12 ‘‘(II) $2,050,000,000 shall be for

13 operating loans under subtitle B.

14 ‘‘(E) FISCAL YEAR 2000.—For fiscal year

15 2000, $3,435,000,000, of which—

16 ‘‘(i) $585,000,000 shall be for direct

17 loans, of which—

18 ‘‘(I) $85,000,000 shall be for farm

19 ownership loans under subtitle A; and

20 ‘‘(II) $500,000,000 shall be for op21 erating loans under subtitle B; and

22 ‘‘(ii) $2,850,000,000 shall be for guar23 anteed loans, of which—
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1 ‘‘(I) $750,000,000 shall be for

2 farm ownership loans under subtitle A;

3 and

4 ‘‘(II) $2,100,000,000 shall be for

5 operating loans under subtitle B.

6 ‘‘(F) FISCAL YEAR 2001.—For fiscal year

7 2001, $3,435,000,000, of which—

8 ‘‘(i) $585,000,000 shall be for direct

9 loans, of which—

10 ‘‘(I) $85,000,000 shall be for farm

11 ownership loans under subtitle A; and

12 ‘‘(II) $500,000,000 shall be for op13 erating loans under subtitle B; and

14 ‘‘(ii) $2,850,000,000 shall be for guar15 anteed loans, of which—

16 ‘‘(I) $750,000,000 shall be for

17 farm ownership loans under subtitle A;

18 and

19 ‘‘(II) $2,100,000,000 shall be for

20 operating loans under subtitle B.

21 ‘‘(G) FISCAL YEAR 2002.—For fiscal year

22 2002, $3,435,000,000, of which—

23 ‘‘(i) $585,000,000 shall be for direct

24 loans, of which—
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1 ‘‘(I) $85,000,000 shall be for farm

2 ownership loans under subtitle A; and

3 ‘‘(II) $500,000,000 shall be for op4 erating loans under subtitle B; and

5 ‘‘(ii) $2,850,000,000 shall be for guar6 anteed loans, of which—

7 ‘‘(I) $750,000,000 shall be for

8 farm ownership loans under subtitle A;

9 and

10 ‘‘(II) $2,100,000,000 shall be for

11 operating loans under subtitle B.

12 ‘‘(2) BEGINNING FARMERS AND RANCHERS.—

13 ‘‘(A) DIRECT LOANS.—

14 ‘‘(i) FARM OWNERSHIP LOANS.—Of the

15 amounts made available under paragraph

16 (1) for direct farm ownership loans, the

17 Secretary shall reserve 70 percent of avail18 able funds for qualified beginning farmers

19 and ranchers.

20 ‘‘(ii) OPERATING LOANS.—Of the

21 amounts made available under paragraph

22 (1) for direct operating loans, the Secretary

23 shall reserve for qualified beginning farmers

24 and ranchers—
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1 ‘‘(I) for fiscal year 1996, 25 per2 cent;

3 ‘‘(II) for fiscal year 1997, 25 per4 cent;

5 ‘‘(III) for fiscal year 1998, 25

6 percent;

7 ‘‘(IV) for fiscal year 1999, 30 per8 cent; and

9 ‘‘(V) for each of fiscal years 2000

10 through 2002, 35 percent.

11 ‘‘(iii) FUNDS RESERVED UNTIL SEP12 TEMBER 1.—Funds reserved for beginning

13 farmers or ranchers under this subpara14 graph shall be reserved only until Septem15 ber 1 of each fiscal year.

16 ‘‘(B) GUARANTEED LOANS.—

17 ‘‘(i) FARM OWNERSHIP LOANS.—Of the

18 amounts made available under paragraph

19 (1) for guaranteed farm ownership loans,

20 the Secretary shall reserve 25 percent for

21 qualified beginning farmers and ranchers.

22 ‘‘(ii) OPERATING LOANS.—Of the

23 amounts made available under paragraph

24 (1) for guaranteed operating loans, the Sec-
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1 retary shall reserve 40 percent for qualified

2 beginning farmers and ranchers.

3 ‘‘(iii) FUNDS RESERVED UNTIL APRIL

4 1.—Funds reserved for beginning farmers or

5 ranchers under this subparagraph shall be

6 reserved only until April 1 of each fiscal

7 year.

8 ‘‘(C) RESERVED FUNDS FOR ALL QUALIFIED

9 BEGINNING FARMERS AND RANCHERS.—If a

10 qualified beginning farmer or rancher meets the

11 eligibility criteria for receiving a direct or guar12 anteed loan under section 302, 310E, or 311, the

13 Secretary shall make or guarantee the loan if

14 sufficient funds reserved under this paragraph

15 are available to make or guarantee the loan.

16 ‘‘(3) TRANSFER FOR DOWN PAYMENT LOANS.—

17 ‘‘(A) IN GENERAL.—Notwithstanding sub18 section (a), subject to subparagraph (B)—

19 ‘‘(i) beginning on August 1 of each fis20 cal year, the Secretary shall use available

21 unsubsidized guaranteed farm operating

22 loan funds to fund approved direct farm

23 ownership loans to beginning farmers and

24 ranchers under the down payment loan pro25 gram established under section 310E; and
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1 ‘‘(ii) beginning on September 1 of each

2 fiscal year, the Secretary shall use available

3 unsubsidized guaranteed farm operating

4 loan funds to fund approved direct farm

5 ownership loans to beginning farmers and

6 ranchers.

7 ‘‘(B) LIMITATION.—The Secretary shall

8 limit the transfer of funds under subparagraph

9 (A) so that all guaranteed farm operating loans

10 that have been approved, or will be approved,

11 during the fiscal year shall be funded to extent

12 of appropriated amounts.

13 ‘‘(4) TRANSFER FOR CREDIT SALES OF FARM IN14 VENTORY PROPERTY.—

15 ‘‘(A) IN GENERAL.—Notwithstanding sub16 section (a), subject to subparagraphs (B) and

17 (C), beginning on September 1 of each fiscal

18 year, the Secretary may use available emergency

19 disaster loan funds appropriated for the fiscal

20 year to fund the credit sale of farm real estate

21 in the inventory of the Secretary.

22 ‘‘(B) SUPPLEMENTAL APPROPRIATIONS.—

23 The transfer authority provided under subpara24 graph (A) does not include any emergency disas25 ter loan funds made available to the Secretary
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1 for any fiscal year as a result of a supplemental

2 appropriation made by Congress.

3 ‘‘(C) LIMITATION.—The Secretary shall

4 limit the transfer of funds under subparagraph

5 (A) so that all emergency disaster loans that

6 have been approved, or will be approved, during

7 the fiscal year shall be funded to extent of appro8 priated amounts.’’.

9 SEC. 636. LIST OF CERTIFIED LENDERS AND INVENTORY

10 PROPERTY DEMONSTRATION PROJECT.

11 (a) IN GENERAL.—Section 351 of the Consolidated

12 Farm and Rural Development Act (7 U.S.C. 1999) is

13 amended—

14 (1) in subsection (f)—

15 (A) by striking ‘‘Each Farmers Home Ad16 ministration county supervisor’’ and inserting

17 ‘‘The Secretary’’;

18 (B) by striking ‘‘approved lenders’’ and in19 serting ‘‘lenders’’; and

20 (C) by striking ‘‘the Farmers Home Admin21 istration’’; and

22 (2) by striking subsection (h).

23 (b) TECHNICAL AMENDMENTS.—

24 (1) Section 1320 of the Food Security Act of

25 1985 (Public Law 99–198; 7 U.S.C. 1999 note) is
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1 amended by striking ‘‘Effective only’’ and all that fol2 lows through ‘‘1995, the’’ and inserting ‘‘The’’.

3 (2) Section 351(a) of the Consolidated Farm and

4 Rural Development Act (7 U.S.C. 1999) is amend5 ed—

6 (A) by striking ‘‘SEC. 351. (a) The’’ and in7 serting the following:

8 ‘‘SEC. 351. INTEREST RATE REDUCTION PROGRAM.

9 ‘‘(a) ESTABLISHMENT OF PROGRAM.—

10 ‘‘(1) IN GENERAL.—The’’; and

11 (B) by adding at the end the following:

12 ‘‘(2) TERMINATION OF AUTHORITY.—The author13 ity provided by this subsection shall terminate on

14 September 30, 2002.’’.

15 SEC. 637. HOMESTEAD PROPERTY.

16 Section 352(c) of the Consolidated Farm and Rural

17 Development Act (7 U.S.C. 2000(c)) is amended—

18 (1) in paragraph (1)(A), by striking ‘‘90’’ each

19 place it appears and inserting ‘‘30’’; and

20 (2) in paragraph (6), by striking ‘‘Within 30’’

21 and all that follows through ‘‘title,’’ and insert ‘‘Not

22 later than the date of acquisition of the property se23 curing a loan made under this title (or, in the case

24 of real property in inventory on the effective date of

25 the Agricultural Reform and Improvement Act of
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1 1996, not later than 5 days after the date of enact2 ment of the Act),’’ and by striking the second sen3 tence.

4 SEC. 638. RESTRUCTURING.

5 Section 353 of the Consolidated Farm and Rural De6 velopment Act (7 U.S.C. 2001) is amended—

7 (1) in subsection (c)—

8 (A) in paragraph (3) by striking subpara9 graph (C) and inserting the following:

10 ‘‘(C) CASH FLOW MARGIN.—

11 ‘‘(i) ASSUMPTION.—For the purpose of

12 assessing under subparagraph (A) the abil13 ity of a borrower to meet debt obligations

14 and continue farming operations, the Sec15 retary shall assume that the borrower needs

16 up to 110 percent of the amount indicated

17 for payment of farm operating expenses,

18 debt service obligations, and family living

19 expenses.

20 ‘‘(ii) AVAILABLE INCOME.—If an

21 amount up to 110 percent of the amount de22 termined under subparagraph (A) is avail23 able, the Secretary shall consider the income

24 of the borrower to be adequate to meet all
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1 expenses, including the debt obligations of

2 the borrower.’’; and

3 (B) by striking paragraph (6) and inserting

4 the following:

5 ‘‘(6) TERMINATION OF LOAN OBLIGATIONS.—The

6 obligations of a borrower to the Secretary under a

7 loan shall terminate if—

8 ‘‘(A) the borrower satisfies the requirements

9 of paragraphs (1) and (2) of subsection (b);

10 ‘‘(B) the value of the restructured loan is

11 less than the recovery value; and

12 ‘‘(C) not later than 90 days after receipt of

13 the notification described in paragraph (4)(B),

14 the borrower pays (or obtains third-party fi15 nancing to pay) the Secretary an amount equal

16 to the current market value.’’;

17 (2) by striking subsection (k); and

18 (3) by redesignating subsections (l) through (p)

19 as subsections (k) through (o), respectively.

20 SEC. 639. TRANSFER OF INVENTORY LANDS.

21 Section 354 of the Consolidated Farm and Rural De22 velopment Act (7 U.S.C. 2002) is amended—

23 (1) in the matter preceding paragraph (1), by

24 striking ‘‘The Secretary, without reimbursement,’’

25 and inserting the following:
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1 ‘‘(a) IN GENERAL.—Subject to subsection (b), the Sec2 retary’’;

3 (2) by striking paragraph (2) and inserting the

4 following:

5 ‘‘(2) that is eligible to be disposed of in accord6 ance with section 335; and’’; and

7 (3) by adding at the end the following:

8 ‘‘(b) CONDITIONS.—The Secretary may not transfer

9 any property or interest under subsection (a) unless—

10 ‘‘(1) at least 2 public notices are given of the

11 transfer;

12 ‘‘(2) if requested, at least 1 public meeting is

13 held prior to the transfer; and

14 ‘‘(3) the Governor and at least 1 elected county

15 official are consulted prior to the transfer.’’.

16 SEC. 640. IMPLEMENTATION OF TARGET PARTICIPATION

17 RATES.

18 Section 355 of the Consolidated Farm and Rural De19 velopment Act (7 U.S.C. 2003) is amended by adding at

20 the end the following:

21 ‘‘(f) IMPLEMENTATION CONSISTENT WITH SUPREME

22 COURT HOLDING.—Not later than 180 days after the date

23 of enactment of this subsection, the Secretary shall ensure

24 that the implementation of this section is consistent with

25 the holding of the Supreme Court in Adarand Constructors,
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1 Inc. v. Federico Pena, Secretary of Transportation, 63

2 U.S.L.W. 4523 (U.S. June 12, 1995).’’.

3 SEC. 641. DELINQUENT BORROWERS AND CREDIT STUDY.

4 The Consolidated Farm and Rural Development Act

5 (7 U.S.C. 1921 et seq.) is amended by adding at the end

6 the following:

7 ‘‘SEC. 372. PAYMENT OF INTEREST AS A CONDITION OF

8 LOAN SERVICING FOR BORROWERS.

9 ‘‘The Secretary may not reschedule or reamortize a

10 loan for a borrower under this title who has not requested

11 consideration under section 331D(e) unless the borrower

12 pays a portion, as determined by the Secretary, of the inter13 est due on the loan.

14 ‘‘SEC. 373. LOAN AND LOAN SERVICING LIMITATIONS

15 ‘‘(a) DELINQUENT BORROWERS PROHIBITED FROM

16 OBTAINING DIRECT OPERATING LOANS.—The Secretary

17 may not make a direct operating loan under subtitle B to

18 a borrower who is delinquent on any loan made or guaran19 teed under this title.

20 ‘‘(b) LOANS PROHIBITED FOR BORROWERS THAT

21 HAVE RECEIVED DEBT FORGIVENESS.—

22 ‘‘(1) IN GENERAL.—Except as provided in para23 graph (2), the Secretary may not make or guarantee

24 a loan under this title to a borrower who received

25 debt forgiveness under this title.
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1 ‘‘(2) EXCEPTION.—The Secretary may make a

2 direct or guaranteed farm operating loan for paying

3 annual farm or ranch operating expenses to a bor4 rower who was restructured with debt write-down

5 under section 353.

6 ‘‘(c) NO MORE THAT 1 DEBT FORGIVENESS FOR A

7 BORROWER ON A DIRECT LOAN.—The Secretary may not

8 provide debt forgiveness to a borrower on a direct loan made

9 under this title if the borrower has received debt forgiveness

10 on another direct loan under this title.

11 ‘‘SEC. 374. CREDIT STUDY.

12 ‘‘(a) IN GENERAL.—The Secretary of Agriculture shall

13 perform a study and report to the Committee on Agriculture

14 in the House of Representatives and the Committee on Agri15 culture, Nutrition, and Forestry in the Senate on the de16 mand for and availability of credit in rural areas for agri17 culture, rural housing, and rural development.

18 ‘‘(b) PURPOSE.—The purpose of the study is to ensure

19 that Congress has current and comprehensive information

20 to consider as Congress deliberates on the credit needs of

21 rural America and the availability of credit to satisfy the

22 needs of rural America.

23 ‘‘(c) ITEMS IN STUDY.—The study should be based on

24 the most current available data and should include—
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1 ‘‘(1) rural demand for credit from the Farm

2 Credit System, the ability of the Farm Credit System

3 to meet the demand, and the extent to which the

4 Farm Credit System provided loans to satisfy the de5 mand;

6 ‘‘(2) rural demand for credit from the nation’s

7 banking system, the ability of banks to meet the de8 mand, and the extent to which banks provided loans

9 to satisfy the demand;

10 ‘‘(3) rural demand for credit from the Secretary,

11 the ability of the Secretary to meet the demand, and

12 the extent to which the Secretary provided loans to

13 satisfy the demand;

14 ‘‘(4) rural demand for credit from other Federal

15 agencies, the ability of the agencies to meet the de16 mand, and the extent to which the agencies provided

17 loans to satisfy the demand;

18 ‘‘(5) what measure or measures exist to gauge the

19 overall demand for rural credit and the extent to

20 which rural demand for credit is satisfied, and what

21 the measures have shown;

22 ‘‘(6) a comparison of the interest rates and terms

23 charged by the Farm Credit System Farm Credit

24 Banks, production credit associations, and banks for

25 cooperatives with the rates and terms charged by the
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1 nation’s banks for credit of comparable risk and ma2 turity;

3 ‘‘(7) the advantages and disadvantages of the

4 modernization and expansion proposals of the Farm

5 Credit System on the Farm Credit System, the na6 tion’s banking system, rural users of credit, local

7 rural communities, and the Federal Government, in8 cluding—

9 ‘‘(A) any added risk to the safety and

10 soundness of the Farm Credit System that may

11 result from approval of a proposal; and

12 ‘‘(B) any positive or adverse impacts on

13 competition between the Farm Credit System

14 and the nation’s banks in providing credit to

15 rural users;

16 ‘‘(8) the nature and extent of the unsatisfied

17 rural credit need that the Farm Credit System pro18 posal are supposed to address and what aspects of the

19 present Farm Credit System prevent the Farm Credit

20 System from meeting the need;

21 ‘‘(9) the advantages and disadvantages of the

22 proposal by commercial bankers to allow banks access

23 to the Farm Credit System as a funding source on the

24 Farm Credit System, the nation’s banking system,
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1 rural users of credit, local rural communities, and the

2 Federal Government, including—

3 ‘‘(A) any added risk to the safety and

4 soundness of the Farm Credit System that may

5 result from approval of the proposal; and

6 ‘‘(B) any positive or adverse impacts on

7 competition between the Farm Credit System

8 and the nation’s banks in providing credit to

9 rural users; and

10 ‘‘(10) problems that commercial banks have in

11 obtaining capital for lending in rural areas, how ac12 cess to Farm Credit System funds would improve the

13 availability of capital in rural areas in ways that

14 cannot be achieved in the present system, and the pos15 sible effects on the viability of the Farm Credit Sys16 tem of granting banks access to Farm Credit System

17 funds.

18 ‘‘(d) INTERAGENCY TASK FORCE.—In completing the

19 study, the Secretary shall use, among other things, data and

20 information obtained by the interagency task force on rural

21 credit.’’.

22 CHAPTER 5—GENERAL PROVISIONS

23 SEC. 651. CONFORMING AMENDMENTS.

24 (a) Section 307(a) of the Consolidated Farm and

25 Rural Development Act (7 U.S.C. 1927(a)) is amended—
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1 (1) in paragraph (4), by striking ‘‘304(b),

2 306(a)(1), and 310B’’ and inserting ‘‘306(a)(1) and

3 310B’’; and

4 (2) in paragraph (6)(B)—

5 (A) by striking clauses (i), (ii), and (vii);

6 (B) in clause (v), by adding ‘‘and’’ at the

7 end;

8 (C) in clause (vi), by striking ‘‘, and’’ at

9 the end and inserting a period; and

10 (D) by redesignating clauses (iii) through

11 (vi) as clauses (i) through (iv), respectively.

12 (b) The second sentence of section 309(g)(1) of the Con13 solidated Farm and Rural Development Act (7 U.S.C.

14 1929(g)(1)) is amended by striking ‘‘section 308,’’.

15 (c) Section 309A of the Consolidated Farm and Rural

16 Development Act (7 U.S.C. 1929a) is amended—

17 (1) in the second sentence of subsection (a), by

18 striking ‘‘304(b), 306(a)(1), 306(a)(14), 310B, and

19 312(b)’’ and inserting ‘‘306(a)(1), 306(a)(14), and

20 310B’’; and

21 (2) in subsection (b), by striking ‘‘and section

22 308’’.

23 (d) Section 310B(d) of the Consolidated Farm and

24 Rural Development Act (7 U.S.C. 1932(d)) is amended—
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1 (1) by striking ‘‘sections 304(b), 310B, and

2 312(b)’’ each place it appears in paragraphs (2), (3),

3 and (4) and inserting ‘‘this section’’; and

4 (2) in paragraph (6), by striking ‘‘this section,

5 section 304, or section 312’’ and inserting ‘‘this sec6 tion’’.

7 (e) The first sentence of section 310D(a) of the Consoli8 dated Farm and Rural Development Act (7 U.S.C. 1934(a))

9 is amended by striking ‘‘paragraphs (1) through (5) of sec10 tion 303(a), or subparagraphs (A) through (E) of section

11 304(a)(1)’’ and inserting ‘‘section 303(a), or paragraphs (1)

12 through (5) of section 304(b)’’.

13 (f) Section 311(b)(1) of the Consolidated Farm and

14 Rural Development Act (7 U.S.C. 1941(b)(1)) is amended

15 by striking ‘‘and for the purposes specified in section 312’’.

16 (g) Section 316(a) of the Consolidated Farm and

17 Rural Development Act (7 U.S.C. 1946(a)) is amended by

18 striking paragraph (3).

19 (h) Section 343 of the Consolidated Farm and Rural

20 Development Act (7 U.S.C. 1991) is amended—

21 (1) in subsection (a)(10), by striking ‘‘recreation

22 loan (RL) under section 304,’’; and

23 (2) in subsection (b)—

24 (A) in the matter preceding paragraph (1),

25 by striking ‘‘351(h),’’; and
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1 (B) by striking paragraph (4) and inserting

2 the following:

3 ‘‘(4) PRESERVATION LOAN SERVICE PROGRAM.—

4 The term ‘‘preservation loan service program’’ means

5 homestead retention as authorized under section

6 352.’’.

7 (i) The first sentence of section 344 of the Consolidated

8 Farm and Rural Development Act (7 U.S.C. 1992) is

9 amended by striking ‘‘304(b), 306(a)(1), 310B, 312(b), or

10 312(c)’’ and inserting ‘‘306(a)(1), 310B, or 312(c)’’.

11 (j) Section 353(l) of the Consolidated Farm and Rural

12 Development Act (as redesignated by section 638(3)) is fur13 ther amended by striking ‘‘and subparagraphs (A)(i) and

14 (C)(i) of section 335(e)(1),’’.

15 Subtitle B—Farm Credit System

16 CHAPTER 1—AGRICULTURAL MORTGAGE

17 SECONDARY MARKET

18 SEC. 661. DEFINITION OF REAL ESTATE.

19 Section 8.0(1)(B)(ii) of the Farm Credit Act of 1971

20 (12 U.S.C. 2279aa(1)(B)(ii)) is amended by striking ‘‘with

21 a purchase price’’ and inserting ‘‘, excluding the land to

22 which the dwelling is affixed, with a value’’.

23 SEC. 662. DEFINITION OF CERTIFIED FACILITY.

24 Section 8.0(3) of the Farm Credit Act of 1971 (12

25 U.S.C. 2279aa(3)) is amended—
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1 (1) in subparagraph (A), by striking ‘‘a second2 ary marketing agricultural loan’’ and inserting ‘‘an

3 agricultural mortgage marketing’’; and

4 (2) in subparagraph (B), by striking ‘‘, but

5 only’’ and all that follows through ‘‘(9)(B)’’.

6 SEC. 663. DUTIES OF FEDERAL AGRICULTURAL MORTGAGE

7 CORPORATION.

8 Section 8.1(b) of the Farm Credit Act of 1971 (12

9 U.S.C. 2279aa–1(b)) is amended—

10 (1) in paragraph (2), by striking ‘‘and’’ at the

11 end;

12 (2) in paragraph (3), by striking the period at

13 the end and inserting ‘‘; and’’; and

14 (3) by adding at the end the following:

15 ‘‘(4) purchase qualified loans and issue securities

16 representing interests in, or obligations backed by, the

17 qualified loans, guaranteed for the timely repayment

18 of principal and interest.’’.

19 SEC. 664. POWERS OF THE CORPORATION.

20 Section 8.3(c) of the Farm Credit Act of 1971 (12

21 U.S.C. 2279aa–3(c)) is amended—

22 (1) by redesignating paragraphs (13) and (14)

23 as paragraphs (14) and (15), respectively; and

24 (2) by inserting after paragraph (12) the follow25 ing:
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1 ‘‘(13) To purchase, hold, sell, or assign a quali2 fied loan, to issue a guaranteed security, representing

3 an interest in, or an obligation backed by, the quali4 fied loan, and to perform all the functions and re5 sponsibilities of an agricultural mortgage marketing

6 facility operating as a certified facility under this

7 title.’’.

8 SEC. 665. FEDERAL RESERVE BANKS AS DEPOSITARIES AND

9 FISCAL AGENTS.

10 Section 8.3 of the Farm Credit Act of 1971 (12 U.S.C.

11 2279aa–3) is amended—

12 (1) in subsection (d), by striking ‘‘may act as de13 positories for, or’’ and inserting ‘‘shall act as deposi14 tories for, and’’; and

15 (2) in subsection (e), by striking ‘‘Secretary of

16 the Treasury may authorize the Corporation to use’’

17 and inserting ‘‘Corporation shall have access to’’.

18 SEC. 666. CERTIFICATION OF AGRICULTURAL MORTGAGE

19 MARKETING FACILITIES.

20 Section 8.5 of the Farm Credit Act of 1971 (12 U.S.C.

21 2279aa–5) is amended—

22 (1) in subsection (a)—

23 (A) in paragraph (1), by inserting ‘‘(other

24 than the Corporation)’’ after ‘‘agricultural mort25 gage marketing facilities’’; and
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1 (B) in paragraph (2), by inserting ‘‘(other

2 than the Corporation)’’ after ‘‘agricultural mort3 gage marketing facility’’; and

4 (2) in subsection (e)(1), by striking ‘‘(other than

5 the Corporation)’’.

6 SEC. 667. GUARANTEE OF QUALIFIED LOANS.

7 Section 8.6 of the Farm Credit Act of 1971 (12 U.S.C.

8 2279aa–6) is amended—

9 (1) in subsection (a)(1)—

10 (A) by striking ‘‘Corporation shall guaran11 tee’’ and inserting the following: ‘‘Corporation—

12 ‘‘(A) shall guarantee’’;

13 (B) by striking the period at the end and

14 inserting ‘‘; and’’; and

15 (C) by adding at the end the following:

16 ‘‘(B) may issue a security, guaranteed as to

17 the timely payment of principal and interest,

18 that represents an interest solely in, or an obli19 gation fully backed by, a pool consisting of

20 qualified loans that—

21 ‘‘(i) meet the standards established

22 under section 8.8; and

23 ‘‘(ii) have been purchased and held by

24 the Corporation.’’;

25 (2) in subsection (d)—
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1 (A) by striking paragraph (4); and

2 (B) by redesignating paragraphs (5), (6),

3 and (7) as paragraphs (4), (5), and (6), respec4 tively; and

5 (3) in subsection (g)(2), by striking ‘‘section

6 8.0(9)(B))’’ and inserting ‘‘section 8.0(9))’’.

7 SEC. 668. MANDATORY RESERVES AND SUBORDINATED

8 PARTICIPATION INTERESTS ELIMINATED.

9 (a) GUARANTEE OF QUALIFIED LOANS.—Section 8.6

10 of the Farm Credit Act of 1971 (12 U.S.C. 2279aa–6) is

11 amended by striking subsection (b).

12 (b) RESERVES AND SUBORDINATED PARTICIPATION

13 INTERESTS.—Section 8.7 of the Farm Credit Act of 1971

14 (12 U.S.C. 2279aa–7) is repealed.

15 (c) CONFORMING AMENDMENTS.—

16 (1) Section 8.0(9)(B)(i) of the Farm Credit Act

17 of 1971 (12 U.S.C. 2279aa(9)(B)(i)) is amended by

18 striking ‘‘8.7, 8.8,’’ and inserting ‘‘8.8’’.

19 (2) Section 8.6(a)(2) of the Farm Credit Act of

20 1971 (12 U.S.C. 2279aa–6(a)(2)) is amended by

21 striking ‘‘subject to the provisions of subsection (b)’’.

22 SEC. 669. STANDARDS REQUIRING DIVERSIFIED POOLS.

23 (a) IN GENERAL.—Section 8.6 of the Farm Credit Act

24 of 1971 (12 U.S.C. 2279aa–6) (as amended by section 668)

25 is amended—
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1 (1) by striking subsection (c); and

2 (2) by redesignating subsections (d) through (g)

3 as subsections (b) through (e), respectively.

4 (b) CONFORMING AMENDMENTS.—

5 (1) Section 8.0(9)(B)(i) of the Farm Credit Act

6 of 1971 (12 U.S.C. 2279aa(9)(B)(i)) is amended by

7 striking ‘‘(f)’’ and inserting ‘‘(d)’’.

8 (2) Section 8.13(a) of the Farm Credit Act of

9 1971 (12 U.S.C. 2279aa–13(a)) is amended by strik10 ing ‘‘sections 8.6(b) and’’ in each place it appears

11 and inserting ‘‘section’’.

12 (3) Section 8.32(b)(1)(C) of the Farm Credit Act

13 of 1971 (12 U.S.C. 2279bb–1(b)(1)(C)) is amended—

14 (A) by striking ‘‘shall’’ and inserting

15 ‘‘may’’; and

16 (B) by inserting ‘‘(as in effect before the

17 date of the enactment of the Agricultural Reform

18 and Improvement Act of 1996)’’ before the semi19 colon.

20 (4) Section 8.6(b) of the Farm Credit Act of

21 1971 (12 U.S.C. 2279aa–6(b)) (as redesignated by

22 subsection (a)(2)) is amended—

23 (A) by striking paragraph (4) (as redesig24 nated by section 667(2)(B)); and
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1 (B) by redesignating paragraphs (5) and

2 (6) (as redesignated by section 667(2)(B)) as

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

4 SEC. 670. SMALL FARMS.

5 Section 8.8(e) of the Farm Credit Act of 1971 (12

6 U.S.C. 2279aa–8(e)) is amended by adding at the end the

7 following: ‘‘The Board shall promote and encourage the in8 clusion of qualified loans for small farms and family farm9 ers in the agricultural mortgage secondary market.’’.

10 SEC. 671. DEFINITION OF AN AFFILIATE.

11 Section 8.11(e) of the Farm Credit Act of 1971 (21

12 U.S.C. 2279aa–11(e)) is amended—

13 (1) by striking ‘‘a certified facility or’’; and

14 (2) by striking ‘‘paragraphs (3) and (7), respec15 tively, of section 8.0’’ and inserting ‘‘section 8.0(7)’’.

16 SEC. 672. STATE USURY LAWS SUPERSEDED.

17 Section 8.12 of the Farm Credit Act of 1971 (12 U.S.C.

18 2279aa–12) is amended by striking subsection (d) and in19 serting the following:

20 ‘‘(d) STATE USURY LAWS SUPERSEDED.—A provision

21 of the Constitution or law of any State shall not apply to

22 an agricultural loan made by an originator or a certified

23 facility in accordance with this title for sale to the Corpora24 tion or to a certified facility for inclusion in a pool for

25 which the Corporation has provided, or has committed to
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1 provide, a guarantee, if the loan, not later than 180 days

2 after the date the loan was made, is sold to the Corporation

3 or included in a pool for which the Corporation has pro4 vided a guarantee, if the provision—

5 ‘‘(1) limits the rate or amount of interest, dis6 count points, finance charges, or other charges that

7 may be charged, taken, received, or reserved by an ag8 ricultural lender or a certified facility; or

9 ‘‘(2) limits or prohibits a prepayment penalty

10 (either fixed or declining), yield maintenance, or

11 make-whole payment that may be charged, taken, or

12 received by an agricultural lender or a certified facil13 ity in connection with the full or partial payment of

14 the principal amount due on a loan by a borrower in

15 advance of the scheduled date for the payment under

16 the terms of the loan, otherwise known as a prepay17 ment of the loan principal.’’.

18 SEC. 673. EXTENSION OF CAPITAL TRANSITION PERIOD.

19 Section 8.32 of the Farm Credit Act of 1971 (12 U.S.C.

20 2279bb–1) is amended—

21 (1) in the first sentence of subsection (a), by

22 striking ‘‘Not later than the expiration of the 2-year

23 period beginning on December 13, 1991,’’ and insert24 ing ‘‘Not sooner than the expiration of the 3-year pe-
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1 riod beginning on the date of enactment of the Agri2 cultural Reform and Improvement Act of 1996,’’;

3 (2) in the first sentence of subsection (b)(2), by

4 striking ‘‘5-year’’ and inserting ‘‘8-year’’; and

5 (3) in subsection (d)—

6 (A) in the first sentence—

7 (i) by striking ‘‘The regulations estab8 lishing’’ and inserting the following:

9 ‘‘(1) IN GENERAL.—The regulations establish10 ing’’; and

11 (ii) by striking ‘‘shall contain’’ and in12 serting the following: ‘‘shall—

13 ‘‘(A) be issued by the Director for public

14 comment in the form of a notice of proposed

15 rulemaking, to be first published after the expi16 ration of the period referred to in subsection (a);

17 and

18 ‘‘(B) contain’’; and

19 (B) in the second sentence, by striking ‘‘The

20 regulations shall’’ and inserting the following:

21 ‘‘(2) SPECIFICITY.—The regulations referred to

22 in paragraph (1) shall’’.

23 SEC. 674. MINIMUM CAPITAL LEVEL.

24 Section 8.33 of the Farm Credit Act of 1971 (12 U.S.C.

25 2279bb–2) is amended to read as follows:
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1 ‘‘SEC. 8.33. MINIMUM CAPITAL LEVEL.

2 ‘‘(a) IN GENERAL.—Except as provided in subsection

3 (b), for purposes of this subtitle, the minimum capital level

4 for the Corporation shall be an amount of core capital equal

5 to the sum of—

6 ‘‘(1) 2.75 percent of the aggregate on-balance

7 sheet assets of the Corporation, as determined in ac8 cordance with generally accepted accounting prin9 ciples; and

10 ‘‘(2) 0.75 percent of the aggregate off-balance

11 sheet obligations of the Corporation, which, for the

12 purposes of this subtitle, shall include—

13 ‘‘(A) the unpaid principal balance of out14 standing securities that are guaranteed by the

15 Corporation and backed by pools of qualified

16 loans;

17 ‘‘(B) instruments that are issued or guaran18 teed by the Corporation and are substantially

19 equivalent to instruments described in subpara20 graph (A); and

21 ‘‘(C) other off-balance sheet obligations of

22 the Corporation.

23 ‘‘(b) TRANSITION PERIOD.—

24 ‘‘(1) IN GENERAL.—For purposes of this subtitle,

25 the minimum capital level for the Corporation—
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1 ‘‘(A) prior to January 1, 1997, shall be the

2 amount of core capital equal to the sum of—

3 ‘‘(i) 0.45 percent of aggregate off-bal4 ance sheet obligations of the Corporation;

5 ‘‘(ii) 0.45 percent of designated on-bal6 ance sheet assets of the Corporation, as de7 termined under paragraph (2); and

8 ‘‘(iii) 2.50 percent of on-balance sheet

9 assets of the Corporation other than assets

10 designated under paragraph (2);

11 ‘‘(B) during the 1-year period ending De12 cember 31, 1997, shall be the amount of core cap13 ital equal to the sum of—

14 ‘‘(i) 0.55 percent of aggregate off-bal15 ance sheet obligations of the Corporation;

16 ‘‘(ii) 1.20 percent of designated on-bal17 ance sheet assets of the Corporation, as de18 termined under paragraph (2); and

19 ‘‘(iii) 2.55 percent of on-balance sheet

20 assets of the Corporation other than assets

21 designated under paragraph (2);

22 ‘‘(C) during the 1-year period ending De23 cember 31, 1998, shall be the amount of core cap24 ital equal to—
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1 ‘‘(i) if the Corporation’s core capital is

2 not less than $25,000,000 on January 1,

3 1998, the sum of—

4 ‘‘(I) 0.65 percent of aggregate off5 balance sheet obligations of the Cor6 poration;

7 ‘‘(II) 1.95 percent of designated

8 on-balance sheet assets of the Corpora9 tion, as determined under paragraph

10 (2); and

11 ‘‘(III) 2.65 percent of on-balance

12 sheet assets of the Corporation other

13 than assets designated under para14 graph (2); or

15 ‘‘(ii) if the Corporation’s core capital

16 is less than $25,000,000 on January 1,

17 1998, the amount determined under sub18 section (a); and

19 ‘‘(D) on and after January 1, 1999, shall be

20 the amount determined under subsection (a).

21 ‘‘(2) DESIGNATED ON-BALANCE SHEET AS22 SETS.—For purposes of this subsection, the designated

23 on-balance sheet assets of the Corporation shall be—
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1 ‘‘(A) the aggregate on-balance sheet assets of

2 the Corporation acquired under section 8.6(e);

3 and

4 ‘‘(B) the aggregate amount of qualified

5 loans purchased and held by the Corporation

6 under section 8.3(c)(13).’’.

7 SEC. 675. CRITICAL CAPITAL LEVEL.

8 Section 8.34 of the Farm Credit Act of 1971 (12 U.S.C.

9 2279bb–3) is amended to read as follows:

10 ‘‘SEC. 8.34. CRITICAL CAPITAL LEVEL.

11 ‘‘For purposes of this subtitle, the critical capital level

12 for the Corporation shall be an amount of core capital equal

13 to 50 percent of the total minimum capital amount deter14 mined under section 8.33.’’.

15 SEC. 676. ENFORCEMENT LEVELS.

16 Section 8.35(e) of the Farm Credit Act of 1971 (12

17 U.S.C. 2279bb–4(e)) is amended by striking ‘‘during the 30-

18 month period beginning on the date of the enactment of this

19 section,’’ and inserting ‘‘during the period beginning on De20 cember 13, 1991, and ending on the effective date of the

21 risk based capital regulation issued by the Director under

22 section 8.32,’’.
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1 SEC. 677. RECAPITALIZATION OF THE CORPORATION.

2 Title VIII of the Farm Credit Act of 1971 (12 U.S.C.

3 2279aa et seq.) is amended by adding at the end the follow4 ing:

5 ‘‘SEC. 8.38. RECAPITALIZATION OF THE CORPORATION.

6 ‘‘(a) MANDATORY RECAPITALIZATION.—The Corpora7 tion shall increase the core capital of the Corporation to

8 an amount equal to or greater than $25,000,000, not later

9 than the earlier of—

10 ‘‘(1) the date that is 2 years after the date of en11 actment of this section; or

12 ‘‘(2) the date that is 180 days after the end of

13 the first calendar quarter that the aggregate on-bal14 ance sheet assets of the Corporation, plus the out15 standing principal of the off-balance sheet obligations

16 of the Corporation, equal or exceed $2,000,000,000.

17 ‘‘(b) RAISING CORE CAPITAL.—In carrying out this

18 section, the Corporation may issue stock under section 8.4

19 and otherwise employ any recognized and legitimate means

20 of raising core capital in the power of the Corporation

21 under section 8.3.

22 ‘‘(c) LIMITATION ON GROWTH OF TOTAL ASSETS.—

23 During the 2-year period beginning on the date of enact24 ment of this section, the aggregate on-balance sheet assets

25 of the Corporation plus the outstanding principal of the off26 balance sheet obligations of the Corporation may not exceed
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1 $3,000,000,000 if the core capital of the Corporation is less

2 than $25,000,000.

3 ‘‘(d) ENFORCEMENT.—If the Corporation fails to carry

4 out subsection (a) by the date required under paragraph

5 (1) or (2) of subsection (a), the Corporation may not pur6 chase a new qualified loan or issue or guarantee a new

7 loan-backed security until the core capital of the Corpora8 tion is increased to an amount equal to or greater than

9 $25,000,000.’’.

10 SEC. 678. LIQUIDATION OF THE FEDERAL AGRICULTURAL

11 MORTGAGE CORPORATION.

12 Title VIII of the Farm Credit Act of 1971 (12 U.S.C.

13 2279aa et seq.) (as amended by section 677) is amended

14 by adding at the end the following:

15 ‘‘Subtitle C—Receivership, Con16 servatorship, and Liquidation of

17 the Federal Agricultural Mort18 gage Corporation

19 ‘‘SEC. 8.41. CONSERVATORSHIP; LIQUIDATION; RECEIVER20 SHIP.

21 ‘‘(a) VOLUNTARY LIQUIDATION.—The Corporation

22 may voluntarily liquidate only with the consent of, and in

23 accordance with a plan of liquidation approved by, the

24 Farm Credit Administration Board.

25 ‘‘(b) INVOLUNTARY LIQUIDATION.—
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1 ‘‘(1) IN GENERAL.—The Farm Credit Adminis2 tration Board may appoint a conservator or receiver

3 for the Corporation under the circumstances specified

4 in section 4.12(b).

5 ‘‘(2) APPLICATION.—In applying section 4.12(b)

6 to the Corporation under paragraph (1)—

7 ‘‘(A) the Corporation shall also be consid8 ered insolvent if the Corporation is unable to

9 pay its debts as they fall due in the ordinary

10 course of business;

11 ‘‘(B) a conservator may also be appointed

12 for the Corporation if the authority of the Cor13 poration to purchase qualified loans or issue or

14 guarantee loan-backed securities is suspended;

15 and

16 ‘‘(C) a receiver may also be appointed for

17 the Corporation if—

18 ‘‘(i)(I) the authority of the Corporation

19 to purchase qualified loans or issue or guar20 antee loan-backed securities is suspended; or

21 ‘‘(II) the Corporation is classified

22 under section 8.35 as within level III or IV

23 and the alternative actions available under

24 subtitle B are not satisfactory; and
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1 ‘‘(ii) the Farm Credit Administration

2 determines that the appointment of a con3 servator would not be appropriate.

4 ‘‘(3) NO EFFECT ON SUPERVISORY ACTIONS.—

5 The grounds for appointment of a conservator for the

6 Corporation under this subsection shall be in addition

7 to those in section 8.37.

8 ‘‘(c) APPOINTMENT OF CONSERVATOR OR RECEIVER.—

9 ‘‘(1) QUALIFICATIONS.—Notwithstanding section

10 4.12(b), if a conservator or receiver is appointed for

11 the Corporation, the conservator or receiver shall be—

12 ‘‘(A) the Farm Credit Administration or

13 any other governmental entity or employee, in14 cluding the Farm Credit System Insurance Cor15 poration; or

16 ‘‘(B) any person that—

17 ‘‘(i) has no claim against, or financial

18 interest in, the Corporation or other basis

19 for a conflict of interest as the conservator

20 or receiver; and

21 ‘‘(ii) has the financial and manage22 ment expertise necessary to direct the oper23 ations and affairs of the Corporation and,

24 if necessary, to liquidate the Corporation.

25 ‘‘(2) COMPENSATION.—
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1 ‘‘(A) IN GENERAL.—A conservator or re2 ceiver for the Corporation and professional per3 sonnel (other than a Federal employee) employed

4 to represent or assist the conservator or receiver

5 may be compensated for activities conducted as,

6 or for, a conservator or receiver.

7 ‘‘(B) LIMIT ON COMPENSATION.—Com8 pensation may not be provided in amounts

9 greater than the compensation paid to employees

10 of the Federal Government for similar services,

11 except that the Farm Credit Administration may

12 provide for compensation at higher rates that are

13 not in excess of rates prevailing in the private

14 sector if the Farm Credit Administration deter15 mines that compensation at higher rates is nec16 essary in order to recruit and retain competent

17 personnel.

18 ‘‘(C) CONTRACTUAL ARRANGEMENTS.—The

19 conservator or receiver may contract with any

20 governmental entity, including the Farm Credit

21 System Insurance Corporation, to make person22 nel, services, and facilities of the entity available

23 to the conservator or receiver on such terms and

24 compensation arrangements as shall be mutually
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1 agreed, and each entity may provide the same to

2 the conservator or receiver.

3 ‘‘(3) EXPENSES.—A valid claim for expenses of

4 the conservatorship or receivership (including com5 pensation under paragraph (2)) and a valid claim

6 with respect to a loan made under subsection (f)

7 shall—

8 ‘‘(A) be paid by the conservator or receiver

9 from funds of the Corporation before any other

10 valid claim against the Corporation; and

11 ‘‘(B) may be secured by a lien, on such

12 property of the Corporation as the conservator or

13 receiver may determine, that shall have priority

14 over any other lien.

15 ‘‘(4) LIABILITY.—If the conservator or receiver

16 for the Corporation is not a Federal entity, or an offi17 cer or employee of the Federal Government, the con18 servator or receiver shall not be personally liable for

19 damages in tort or otherwise for an act or omission

20 performed pursuant to and in the course of the

21 conservatorship or receivership, unless the act or

22 omission constitutes gross negligence or any form of

23 intentional tortious conduct or criminal conduct.

24 ‘‘(5) INDEMNIFICATION.—The Farm Credit Ad25 ministration may allow indemnification of the con-
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1 servator or receiver from the assets of the

2 conservatorship or receivership on such terms as the

3 Farm Credit Administration considers appropriate.

4 ‘‘(d) JUDICIAL REVIEW OF APPOINTMENT.—

5 ‘‘(1) IN GENERAL.—Notwithstanding subsection

6 (i)(1), not later than 30 days after a conservator or

7 receiver is appointed under subsection (b), the Cor8 poration may bring an action in the United States

9 District Court for the District of Columbia for an

10 order requiring the Farm Credit Administration

11 Board to remove the conservator or receiver. The court

12 shall, on the merits, dismiss the action or direct the

13 Farm Credit Administration Board to remove the

14 conservator or receiver.

15 ‘‘(2) STAY OF OTHER ACTIONS.—On the com16 mencement of an action under paragraph (1), any

17 court having jurisdiction of any other action or en18 forcement proceeding authorized under this Act to

19 which the Corporation is a party shall stay the action

20 or proceeding during the pendency of the action for

21 removal of the conservator or receiver.

22 ‘‘(e) GENERAL POWERS OF CONSERVATOR OR RE23 CEIVER.—The conservator or receiver for the Corporation

24 shall have such powers to conduct the conservatorship or

25 receivership as shall be provided pursuant to regulations
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1 adopted by the Farm Credit Administration Board. Such

2 powers shall be comparable to the powers available to a con3 servator or receiver appointed pursuant to section 4.12(b).

4 ‘‘(f) BORROWINGS FOR WORKING CAPITAL.—

5 ‘‘(1) IN GENERAL.—If the conservator or receiver

6 of the Corporation determines that it is likely that

7 there will be insufficient funds to pay the ongoing ad8 ministrative expenses of the conservatorship or receiv9 ership or that there will be insufficient liquidity to

10 fund maturing obligations of the conservatorship or

11 receivership, the conservator or receiver may borrow

12 funds in such amounts, from such sources, and at

13 such rates of interest as the conservator or receiver

14 considers necessary or appropriate to meet the admin15 istrative expenses or liquidity needs of the

16 conservatorship or receivership.

17 ‘‘(2) WORKING CAPITAL FROM FARM CREDIT

18 BANKS.—A Farm Credit bank may loan funds to the

19 conservator or receiver for a loan authorized under

20 paragraph (1) or, in the event of receivership, a Farm

21 Credit bank may purchase assets of the Corporation.

22 ‘‘(g) AGREEMENTS AGAINST INTERESTS OF CON23 SERVATOR OR RECEIVER.—No agreement that tends to di24 minish or defeat the right, title, or interest of the conserva25 tor or receiver for the Corporation in any asset acquired
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1 by the conservator or receiver as conservator or receiver for

2 the Corporation shall be valid against the conservator or

3 receiver unless the agreement—

4 ‘‘(1) is in writing;

5 ‘‘(2) is executed by the Corporation and any per6 son claiming an adverse interest under the agreement,

7 including the obligor, contemporaneously with the ac8 quisition of the asset by the Corporation;

9 ‘‘(3) is approved by the Board or an appropriate

10 committee of the Board, which approval shall be re11 flected in the minutes of the Board or committee; and

12 ‘‘(4) has been, continuously, from the time of the

13 agreement’s execution, an official record of the Cor14 poration.

15 ‘‘(h) REPORT TO THE CONGRESS.—On a determina16 tion by the receiver for the Corporation that there are insuf17 ficient assets of the receivership to pay all valid claims

18 against the receivership, the receiver shall submit to the Sec19 retary of the Treasury, the Committee on Agriculture of the

20 House of Representatives, and the Committee on Agri21 culture, Nutrition, and Forestry of the Senate a report on

22 the financial condition of the receivership.

23 ‘‘(i) TERMINATION OF AUTHORITIES.—

24 ‘‘(1) CORPORATION.—The charter of the Corpora25 tion shall be canceled, and the authority provided to
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1 the Corporation by this title shall terminate, on such

2 date as the Farm Credit Administration Board deter3 mines is appropriate following the placement of the

4 Corporation in receivership, but not later than the

5 conclusion of the receivership and discharge of the re6 ceiver.

7 ‘‘(2) OVERSIGHT.—The Office of Secondary Mar8 ket Oversight established under section 8.11 shall be

9 abolished, and section 8.11(a) and subtitle B shall

10 have no force or effect, on such date as the Farm

11 Credit Administration Board determines is appro12 priate following the placement of the Corporation in

13 receivership, but not later than the conclusion of the

14 receivership and discharge of the receiver.’’.

15 CHAPTER 2—REGULATORY RELIEF

16 SEC. 681. COMPENSATION OF ASSOCIATION PERSONNEL.

17 Section 1.5(13) of the Farm Credit Act of 1971 (12

18 U.S.C. 2013(13)) is amended by striking ‘‘, and the ap19 pointment and compensation of the chief executive officer

20 thereof,’’.

21 SEC. 682. USE OF PRIVATE MORTGAGE INSURANCE.

22 (a) IN GENERAL.—Section 1.10(a)(1) of the Farm

23 Credit Act of 1971 (12 U.S.C. 2018(a)(1)) is amended by

24 adding at the end the following:
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1 ‘‘(D) PRIVATE MORTGAGE INSURANCE.—A

2 loan on which private mortgage insurance is ob3 tained may exceed 85 percent of the appraised

4 value of the real estate security to the extent that

5 the loan amount in excess of such 85 percent is

6 covered by the insurance.’’.

7 (b) CONFORMING AMENDMENT.— Section

8 1.10(a)(1)(A) of the Farm Credit Act of 1971 (12 U.S.C.

9 2018(a)(1)(A)) is amended by striking ‘‘paragraphs (2) and

10 (3)’’ and inserting ‘‘subparagraphs (C) and (D)’’.

11 SEC. 683. REMOVAL OF CERTAIN BORROWER REPORTING

12 REQUIREMENT.

13 Section 1.10(a) of the Farm Credit Act of 1971 (12

14 U.S.C. 2018(a)) is amended by striking paragraph (5).

15 SEC. 684. REFORM OF REGULATORY LIMITATIONS ON DIVI16 DEND, MEMBER BUSINESS, AND VOTING

17 PRACTICES OF ELIGIBLE FARMER-OWNED CO18 OPERATIVES.

19 (a) IN GENERAL.—Section 3.8(a) of the Farm Credit

20 Act of 1971 (12 U.S.C. 2129(a)) is amended by adding at

21 the end the following: ‘‘Any such association that has re22 ceived a loan from a bank for cooperatives shall, without

23 regard to the requirements of paragraphs (1) through (4),

24 continue to be eligible for so long as more than 50 percent

25 (or such higher percentage as is established by the bank
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1 board) of the voting control of the association is held by

2 farmers, producers or harvesters of aquatic products, or eli3 gible cooperative associations.’’.

4 (b) CONFORMING AMENDMENT.— Section 3.8(b)(1)(D)

5 of the Farm Credit Act of 1971 (12 U.S.C. 2129(b)(1)(D))

6 is amended by striking ‘‘and (4) of subsection (a)’’ and in7 serting ‘‘and (4), or under the last sentence, of subsection

8 (a)’’.

9 SEC. 685. REMOVAL OF FEDERAL GOVERNMENT

10 CERTIFICATION REQUIREMENT FOR CERTAIN

11 PRIVATE SECTOR FINANCINGS.

12 Section 3.8(b)(1)(A) of the Farm Credit Act of 1971

13 (12 U.S.C. 2129(b)(1)(A)) is amended—

14 (1) by striking ‘‘have been certified by the Ad15 ministrator of the Rural Electrification Administra16 tion to be eligible for such’’ and inserting ‘‘are eligible

17 under the Rural Electrification Act of 1936 (7 U.S.C.

18 901 et seq.) for’’; and

19 (2) by striking ‘‘loan guarantee, and’’ and in20 serting ‘‘loan guarantee from the Administration or

21 the Bank (or a successor of the Administration or the

22 Bank), and’’.

23 SEC. 686. BORROWER STOCK.

24 Section 4.3A of the Farm Credit Act of 1971 (12

25 U.S.C. 2154a) is amended—
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1 (1) by redesignating subsections (f) and (g) as

2 subsections (g) and (h), respectively; and

3 (2) by inserting after subsection (e) the following:

4 ‘‘(f) LOANS DESIGNATED FOR SALE OR SOLD INTO

5 THE SECONDARY MARKET.—

6 ‘‘(1) IN GENERAL.—Subject to paragraph (2)

7 and notwithstanding any other provision of this sec8 tion, the bylaws adopted by a bank or association

9 under subsection (b) may provide—

10 ‘‘(A) in the case of a loan made on or after

11 the date of enactment of this paragraph that is

12 designated, at the time the loan is made, for sale

13 into a secondary market, that no voting stock or

14 participation certificate purchase requirement

15 shall apply to the borrower for the loan; and

16 ‘‘(B) in the case of a loan made before the

17 date of enactment of this paragraph that is sold

18 into a secondary market, that all outstanding

19 voting stock or participation certificates held by

20 the borrower with respect to the loan shall, sub21 ject to subsection (d)(1), be retired.

22 ‘‘(2) APPLICABILITY.—Notwithstanding any

23 other provision of this section, in the case of a loan

24 sold to a secondary market under title VIII, para25 graph (1) shall apply regardless of whether the bank
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1 or association retains a subordinated participation

2 interest in a loan or pool of loans or contributes to

3 a cash reserve.

4 ‘‘(3) EXCEPTION.—

5 ‘‘(A) IN GENERAL.—Subject to subpara6 graph (B) and notwithstanding any other provi7 sion of this section, if a loan designated for sale

8 under paragraph (1)(A) is not sold into a sec9 ondary market during the 180-day period that

10 begins on the date of the designation, the voting

11 stock or participation certificate purchase re12 quirement that would otherwise apply to the

13 loan in the absence of a bylaw provision de14 scribed in paragraph (1)(A) shall be effective.

15 ‘‘(B) RETIREMENT.—The bylaws adopted by

16 a bank or association under subsection (b) may

17 provide that if a loan described in subparagraph

18 (A) is sold into a secondary market after the end

19 of the 180-day period described in the subpara20 graph, all outstanding voting stock or participa21 tion certificates held by the borrower with respect

22 to the loan shall, subject to subsection (d)(1), be

23 retired.’’.
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1 SEC. 687. DISCLOSURE RELATING TO ADJUSTABLE RATE

2 LOANS.

3 Section 4.13(a)(4) of the Farm Credit Act of 1971 (12

4 U.S.C. 2199(a)(4)) is amended by inserting before the semi5 colon at the end the following: ‘‘, and notice to the borrower

6 of a change in the interest rate applicable to the loan of

7 the borrower may be made within a reasonable time after

8 the effective date of an increase or decrease in the interest

9 rate’’.

10 SEC. 688. BORROWERS’ RIGHTS.

11 (a) DEFINITION OF LOAN.—Section 4.14A(a)(5) of the

12 Farm Credit Act of 1971 (12 U.S.C. 2202a(a)(5)) is amend13 ed—

14 (1) by striking ‘‘(5) LOAN.—The’’ and inserting

15 the following:

16 ‘‘(5) LOAN.—

17 ‘‘(A) IN GENERAL.—Subject to subpara18 graph (B), the’’; and

19 (2) by adding at the end the following:

20 ‘‘(B) EXCLUSION FOR LOANS DESIGNATED

21 FOR SALE INTO SECONDARY MARKET.—

22 ‘‘(i) IN GENERAL.—Except as provided

23 in clause (ii), the term ‘loan’ does not in24 clude a loan made on or after the date of

25 enactment of this subparagraph that is des-
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1 ignated, at the time the loan is made, for

2 sale into a secondary market.

3 ‘‘(ii) UNSOLD LOANS.—

4 ‘‘(I) IN GENERAL.—Except as pro5 vided in subclause (II), if a loan des6 ignated for sale under clause (i) is not

7 sold into a secondary market during

8 the 180-day period that begins on the

9 date of the designation, the provisions

10 of this section and sections 4.14, 4.14B,

11 4.14C, 4.14D, and 4.36 that would oth12 erwise apply to the loan in the absence

13 of the exclusion described in clause (i)

14 shall become effective with respect to

15 the loan.

16 ‘‘(II) LATER SALE.—If a loan de17 scribed in subclause (I) is sold into a

18 secondary market after the end of the

19 180-day period described in subclause

20 (I), subclause (I) shall not apply with

21 respect to the loan beginning on the

22 date of the sale.’’.

23 (b) BORROWERS’ RIGHTS FOR POOLED LOANS.—The

24 first sentence of section 8.9(b) of the Farm Credit Act of

25 1971 (12 U.S.C. 2279aa–9(b)) is amended by inserting ‘‘(as
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1 defined in section 4.14A(a)(5))’’ after ‘‘application for a

2 loan’’.

3 SEC. 689. FORMATION OF ADMINISTRATIVE SERVICE ENTI4 TIES.

5 Part E of title IV of the Farm Credit Act of 1971 is

6 amended by inserting after section 4.28 (12 U.S.C. 2214)

7 the following:

8 ‘‘SEC. 4.28A. DEFINITION OF BANK.

9 ‘‘In this part, the term ‘bank’ includes each association

10 operating under title II.’’.

11 SEC. 690. JOINT MANAGEMENT AGREEMENTS.

12 The first sentence of section 5.17(a)(2)(A) of the Farm

13 Credit Act of 1971 (12 U.S.C. 2252(a)(2)(A)) is amended

14 by striking ‘‘or management agreements’’.

15 SEC. 691. DISSEMINATION OF QUARTERLY REPORTS.

16 Section 5.17(a)(8) of the Farm Credit Act of 1971 (12

17 U.S.C. 2252(a)(8)) is amended by inserting after ‘‘except

18 that’’ the following: ‘‘the requirements of the Farm Credit

19 Administration governing the dissemination to stockholders

20 of quarterly reports of System institutions may not be more

21 burdensome or costly than the requirements applicable to

22 national banks, and’’.

23 SEC. 692. REGULATORY REVIEW.

24 (a) FINDINGS.—Congress finds that—
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1 (1) the Farm Credit Administration, in the role

2 of the Administration as an arms-length safety and

3 soundness regulator, has made considerable progress

4 in reducing the regulatory burden on Farm Credit

5 System institutions;

6 (2) the efforts of the Farm Credit Administration

7 described in paragraph (1) have resulted in cost sav8 ings for Farm Credit System institutions; and

9 (3) the cost savings described in paragraph (2)

10 ultimately benefit the farmers, ranchers, agricultural

11 cooperatives, and rural residents of the United States.

12 (b) CONTINUATION OF REGULATORY REVIEW.—The

13 Farm Credit Administration shall continue the comprehen14 sive review of regulations governing the Farm Credit Sys15 tem to identify and eliminate, consistent with law, safety,

16 and soundness, all regulations that are unnecessary, unduly

17 burdensome or costly, or not based on law.

18 SEC. 693. EXAMINATION OF FARM CREDIT SYSTEM INSTITU19 TIONS.

20 The first sentence of section 5.19(a) of the Farm Credit

21 Act of 1971 (12 U.S.C. 2254(a)) is amended by striking

22 ‘‘each year’’ and inserting ‘‘during each 18-month period’’.

23 SEC. 694. CONSERVATORSHIPS AND RECEIVERSHIPS.

24 (a) DEFINITIONS.—Section 5.51 of the Farm Credit

25 Act of 1971 (12 U.S.C. 2277a) is amended—
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1 (1) by striking paragraph (5); and

2 (2) by redesignating paragraph (6) as para3 graph (5).

4 (b) GENERAL CORPORATE POWERS.—Section 5.58 of

5 the Farm Credit Act of 1971 (12 U.S.C. 2277a–7) is amend6 ed by striking paragraph (9) and inserting the following:

7 ‘‘(9) CONSERVATOR OR RECEIVER.—The Cor8 poration may act as a conservator or receiver.’’.

9 SEC. 695. FARM CREDIT INSURANCE FUND OPERATIONS.

10 (a) ADJUSTMENT OF PREMIUMS.—

11 (1) IN GENERAL.—Section 5.55(a) of the Farm

12 Credit Act of 1971 (12 U.S.C. 2277a–4(a)) is amend13 ed—

14 (A) in paragraph (1), by striking ‘‘Until

15 the aggregate of amounts in the Farm Credit In16 surance Fund exceeds the secure base amount,

17 the annual premium due from any insured Sys18 tem bank for any calendar year’’ and inserting

19 the following: ‘‘If at the end of any calendar year

20 the aggregate of amounts in the Farm Credit In21 surance Fund does not exceed the secure base

22 amount, subject to paragraph (2), the annual

23 premium due from any insured System bank for

24 the calendar year’’;
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1 (B) by redesignating paragraph (2) as

2 paragraph (3); and

3 (C) by inserting after paragraph (1) the fol4 lowing:

5 ‘‘(2) REDUCED PREMIUMS.—The Corporation, in

6 the sole discretion of the Corporation, may reduce by

7 a percentage uniformly applied to all insured System

8 banks the annual premium due from each insured

9 System bank during any calendar year, as deter10 mined under paragraph (1).’’.

11 (2) CONFORMING AMENDMENTS.—

12 (A) Section 5.55(b) of the Farm Credit Act

13 of 1971 (12 U.S.C. 2277a–4(b)) is amended—

14 (i) by striking ‘‘Insurance Fund’’ each

15 place it appears and inserting ‘‘Farm Cred16 it Insurance Fund’’;

17 (ii) by striking ‘‘for the following cal18 endar year’’; and

19 (iii) by striking ‘‘subsection (a)’’ and

20 inserting ‘‘subsection (a)(1)’’.

21 (B) Section 5.56(a) of the Farm Credit Act

22 of 1971 (12 U.S.C. 2277a–5(a)) is amended by

23 striking ‘‘section 5.55(a)(2)’’ each place it ap24 pears in paragraphs (2) and (3) and inserting

25 ‘‘section 5.55(a)(3)’’.
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1 (C) Section 1.12(b) (12 U.S.C. 2020(b)) is

2 amended—

3 (i) in paragraph (1), by inserting ‘‘(as

4 defined in section 5.55(a)(3))’’ after ‘‘gov5 ernment-guaranteed loans’’; and

6 (ii) in paragraph (3), by inserting

7 ‘‘(as so defined)’’ after ‘‘government-guaran8 teed loans’’ each place such term appears.

9 (b) ALLOCATION TO INSURED SYSTEM BANKS AND

10 OTHER SYSTEM INSTITUTIONS OF EXCESS AMOUNTS IN

11 THE FARM CREDIT INSURANCE FUND.—Section 5.55 of the

12 Farm Credit Act of 1971 (12 U.S.C. 2277a–4) is amended

13 by adding at the end the following:

14 ‘‘(e) ALLOCATION TO SYSTEM INSTITUTIONS OF EX15 CESS RESERVES.—

16 ‘‘(1) ESTABLISHMENT OF ALLOCATED INSURANCE

17 RESERVES ACCOUNTS.—There is hereby established in

18 the Farm Credit Insurance Fund an Allocated Insur19 ance Reserves Account—

20 ‘‘(A) for each insured System bank; and

21 ‘‘(B) subject to paragraph (6)(C), for all

22 holders, in the aggregate, of Financial Assistance

23 Corporation stock.
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1 ‘‘(2) TREATMENT.—Amounts in any Allocated

2 Insurance Reserves Account shall be considered to be

3 part of the Farm Credit Insurance Fund.

4 ‘‘(3) ANNUAL ALLOCATIONS.—If, at the end of

5 any calendar year, the aggregate of the amounts in

6 the Farm Credit Insurance Fund exceeds the average

7 secure base amount for the calendar year (as cal8 culated on an average daily balance basis), the Cor9 poration shall allocate to the Allocated Insurance Re10 serves Accounts the excess amount less the amount

11 that the Corporation, in its sole discretion, determines

12 to be the sum of the estimated operating expenses and

13 estimated insurance obligations of the Corporation for

14 the immediately succeeding calendar year.

15 ‘‘(4) ALLOCATION FORMULA.—From the total

16 amount required to be allocated at the end of a cal17 endar year under paragraph (3)—

18 ‘‘(A) 10 percent of the total amount shall be

19 credited to the Allocated Insurance Reserves Ac20 count established under paragraph (1)(B), sub21 ject to paragraph (6)(C); and

22 ‘‘(B) there shall be credited to the Allocated

23 Insurance Reserves Account of each insured Sys24 tem bank an amount that bears the same ratio

25 to the total amount (less any amount credited
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1 under subparagraph (A)) as the average prin2 cipal outstanding for the 3-year period ending

3 on the end of the calendar year on loans made

4 by the bank that are in accrual status bears to

5 the average principal outstanding for the 3-year

6 period ending on the end of the calendar year on

7 loans made by all insured System banks that are

8 in accrual status (excluding, in each case, the

9 guaranteed portions of government-guaranteed

10 loans described in subsection (a)(1)(C)).

11 ‘‘(5) USE OF FUNDS IN ALLOCATED INSURANCE

12 RESERVES ACCOUNTS.—To the extent that the sum of

13 the operating expenses of the Corporation and the in14 surance obligations of the Corporation for a calendar

15 year exceeds the sum of operating expenses and insur16 ance obligations determined under paragraph (3) for

17 the calendar year, the Corporation shall cover the ex18 penses and obligations by—

19 ‘‘(A) reducing each Allocated Insurance Re20 serves Account by the same proportion; and

21 ‘‘(B) expending the amounts obtained under

22 subparagraph (A) before expending other

23 amounts in the Fund.

24 ‘‘(6) OTHER DISPOSITION OF ACCOUNT FUNDS.—
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1 ‘‘(A) IN GENERAL.—As soon as practicable

2 during each calendar year beginning more than

3 8 years after the date on which the aggregate of

4 the amounts in the Farm Credit Insurance Fund

5 exceeds the secure base amount, but not earlier

6 than January 1, 2005, the Corporation may—

7 ‘‘(i) subject to subparagraphs (D) and

8 (F), pay to each insured System bank, in a

9 manner determined by the Corporation, an

10 amount equal to the lesser of—

11 ‘‘(I) 20 percent of the balance in

12 the insured System bank’s Allocated

13 Insurance Reserves Account as of the

14 preceding December 31; or

15 ‘‘(II) 20 percent of the balance in

16 the bank’s Allocated Insurance Reserves

17 Account on the date of the payment;

18 and

19 ‘‘(ii) subject to subparagraphs (C), (E),

20 and (F), pay to each System bank and asso21 ciation holding Financial Assistance Cor22 poration stock a proportionate share, deter23 mined by dividing the number of shares of

24 Financial Assistance Corporation stock held

25 by the institution by the total number of
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1 shares of Financial Assistance Corporation

2 stock outstanding, of the lesser of—

3 ‘‘(I) 20 percent of the balance in

4 the Allocated Insurance Reserves Ac5 count established under paragraph

6 (1)(B) as of the preceding December

7 31; or

8 ‘‘(II) 20 percent of the balance in

9 the Allocated Insurance Reserves Ac10 count established under paragraph

11 (1)(B) on the date of the payment.

12 ‘‘(B) AUTHORITY TO ELIMINATE OR REDUCE

13 PAYMENTS.—The Corporation may eliminate or

14 reduce payments during a calendar year under

15 subparagraph (A) if the Corporation determines,

16 in its sole discretion, that the payments, or other

17 circumstances that might require use of the

18 Farm Credit Insurance Fund, could cause the

19 amount in the Farm Credit Insurance Fund

20 during the calendar year to be less than the se21 cure base amount.

22 ‘‘(C) REIMBURSEMENT FOR FINANCIAL AS23 SISTANCE CORPORATION STOCK.—

24 ‘‘(i) SUFFICIENT FUNDING.—Notwith25 standing paragraph (4)(A), on provision by
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1 the Corporation for the accumulation in the

2 Account established under paragraph (1)(B)

3 of funds in an amount equal to $56,000,000

4 (in addition to the amounts described in

5 subparagraph (F)(ii)), the Corporation

6 shall not allocate any further funds to the

7 Account except to replenish the Account if

8 funds are diminished below $56,000,000 by

9 the Corporation under paragraph (5).

10 ‘‘(ii) WIND DOWN AND TERMINATION.—

11 ‘‘(I) FINAL DISBURSEMENTS.—On

12 disbursement of $53,000,000 (in addi13 tion to the amounts described in sub14 paragraph (F)(ii)) from the Allocated

15 Insurance Reserves Account, the Cor16 poration shall disburse the remaining

17 amounts in the Account, as determined

18 under subparagraph (A)(ii), without

19 regard to the percentage limitations in

20 subclauses (I) and (II) of subpara21 graph (A)(ii).

22 ‘‘(II) TERMINATION OF AC23 COUNT.—On disbursement of

24 $56,000,000 (in addition to the

25 amounts described in subparagraph
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1 (F)(ii)) from the Allocated Insurance

2 Reserves Account, the Corporation shall

3 close the Account established under

4 paragraph (1)(B) and transfer any re5 maining funds in the Account to the

6 remaining Allocated Insurance Re7 serves Accounts in accordance with

8 paragraph (4)(B) for the calendar year

9 in which the transfer occurs.

10 ‘‘(D) DISTRIBUTION OF PAYMENTS RE11 CEIVED.—Not later than 60 days after receipt of

12 a payment made under subparagraph (A)(i),

13 each insured System bank, in consultation with

14 affiliated associations of the insured System

15 bank, and taking into account the direct or indi16 rect payment of insurance premiums by the asso17 ciations, shall develop and implement an equi18 table plan to distribute payments received under

19 subparagraph (A)(i) among the bank and asso20 ciations of the bank.

21 ‘‘(E) EXCEPTION FOR PREVIOUSLY REIM22 BURSED ASSOCIATIONS.—For purposes of sub23 paragraph (A)(ii), in any Farm Credit district

24 in which the funding bank has reimbursed 1 or

25 more affiliated associations of the bank for the
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1 previously unreimbursed portion of the Finan2 cial Assistance Corporation stock held by the as3 sociations, the funding bank shall be deemed to

4 be the holder of the shares of Financial Assist5 ance Corporation stock for which the funding

6 bank has provided the reimbursement.

7 ‘‘(F) INITIAL PAYMENT.—Notwithstanding

8 subparagraph (A), the initial payment made to

9 each payee under subparagraph (A) shall be in

10 such amount determined by the Corporation to

11 be equal to the sum of—

12 ‘‘(i) the total of the amounts that

13 would have been paid if payments under

14 subparagraph (A) had been authorized to

15 begin, under the same terms and conditions,

16 in the first calendar year beginning more

17 than 5 years after the date on which the ag18 gregate of the amounts in the Farm Credit

19 Insurance Fund exceeds the secure base

20 amount, and to continue through the 2 im21 mediately subsequent years;

22 ‘‘(ii) interest earned on any amounts

23 that would have been paid as described in

24 clause (i) from the date on which the pay-
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1 ments would have been paid as described in

2 clause (i); and

3 ‘‘(iii) the payment to be made in the

4 initial year described in subparagraph (A),

5 based on the amount in each Account after

6 subtracting the amounts to be paid under

7 clauses (i) and (ii).’’

8 (c) TECHNICAL AMENDMENTS.—Section 5.55(d) of the

9 Farm Credit Act of 1971 (12 U.S.C. 2277a–4(d)) is amend10 ed—

11 (1) in the matter preceding paragraph (1)—

12 (A) by striking ‘‘subsections (a) and (c)’’

13 and inserting ‘‘subsections (a), (c), and (e)’’; and

14 (B) by striking ‘‘a Farm Credit Bank’’ and

15 inserting ‘‘an insured System bank’’; and

16 (2) in paragraphs (1), (2), and (3), by striking

17 ‘‘Farm Credit Bank’’ each place it appears and in18 serting ‘‘insured System bank’’.

19 SEC. 696. EXAMINATIONS BY THE FARM CREDIT SYSTEM IN20 SURANCE CORPORATION.

21 Section 5.59(b)(1)(A) of the Farm Credit Act of 1971

22 (12 U.S.C. 2277a–8(b)(1)(A)) is amended by adding at the

23 end the following: ‘‘Notwithstanding any other provision of

24 this Act, on cancellation of the charter of a System institu25 tion, the Corporation shall have authority to examine the
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1 system institution in receivership. An examination shall be

2 performed at such intervals as the Corporation shall deter3 mine.’’.

4 SEC. 697. POWERS WITH RESPECT TO TROUBLED INSURED

5 SYSTEM BANKS.

6 (a) LEAST-COST RESOLUTION.—Section 5.61(a)(3) of

7 the Farm Credit Act of 1971 (12 U.S.C. 2277a–10(a)) is

8 amended—

9 (1) by redesignating subparagraph (B) as sub10 paragraph (F); and

11 (2) by striking subparagraph (A) and inserting

12 the following:

13 ‘‘(A) LEAST-COST RESOLUTION.—Assistance

14 may not be provided to an insured System bank

15 under this subsection unless the means of provid16 ing the assistance is the least costly means of

17 providing the assistance by the Farm Credit In18 surance Fund of all possible alternatives avail19 able to the Corporation, including liquidation of

20 the bank (including paying the insured obliga21 tions issued on behalf of the bank). Before mak22 ing a least-cost determination under this sub23 paragraph, the Corporation shall accord such

24 other insured System banks as the Corporation

25 determines to be appropriate the opportunity to
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1 submit information relating to the determina2 tion.

3 ‘‘(B) DETERMINING LEAST COSTLY AP4 PROACH.—In determining the least costly alter5 native under subparagraph (A), the Corporation

6 shall—

7 ‘‘(i) evaluate alternatives on a present8 value basis, using a reasonable discount

9 rate;

10 ‘‘(ii) document the evaluation and the

11 assumptions on which the evaluation is

12 based; and

13 ‘‘(iii) retain the documentation for not

14 less than 5 years.

15 ‘‘(C) TIME OF DETERMINATION.—

16 ‘‘(i) GENERAL RULE.—For purposes of

17 this subsection, the determination of the

18 costs of providing any assistance under any

19 provision of this section with respect to any

20 insured System bank shall be made as of the

21 date on which the Corporation makes the

22 determination to provide the assistance to

23 the institution under this section.

24 ‘‘(ii) RULE FOR LIQUIDATIONS.—For

25 purposes of this subsection, the determina-
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1 tion of the costs of liquidation of any in2 sured System bank shall be made as of the

3 earliest of—

4 ‘‘(I) the date on which a conserva5 tor is appointed for the insured System

6 bank;

7 ‘‘(II) the date on which a receiver

8 is appointed for the insured System

9 bank; or

10 ‘‘(III) the date on which the Cor11 poration makes any determination to

12 provide any assistance under this sec13 tion with respect to the insured System

14 bank.

15 ‘‘(D) RULE FOR STAND-ALONE ASSIST16 ANCE.—Before providing any assistance under

17 paragraph (1), the Corporation shall evaluate

18 the adequacy of managerial resources of the in19 sured System bank. The continued service of any

20 director or senior ranking officer who serves in

21 a policymaking role for the assisted insured Sys22 tem bank, as determined by the Corporation,

23 shall be subject to approval by the Corporation

24 as a condition of assistance.
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1 ‘‘(E) DISCRETIONARY DETERMINATIONS.—

2 Any determination that the Corporation makes

3 under this paragraph shall be in the sole discre4 tion of the Corporation.’’.

5 (b) CONFORMING AMENDMENTS.—Section 5.61(a) of

6 the Farm Credit Act of 1971 (12 U.S.C. 2277a–10(a)) is

7 amended—

8 (1) in paragraph (1) by striking ‘‘IN GEN9 ERAL.—’’ and inserting ‘‘STAND-ALONE ASSIST10 ANCE.—’’; and

11 (2) in paragraph (2)—

12 (A) by striking ‘‘ENUMERATED POWERS.—’’

13 and inserting ‘‘FACILITATION OF MERGERS OR

14 CONSOLIDATION.—’’; and

15 (B) in subparagraph (A) by striking ‘‘FA16 CILITATION OF MERGERS OR CONSOLIDATION.—’’

17 and inserting ‘‘IN GENERAL.—’’.

18 SEC. 698. OVERSIGHT AND REGULATORY ACTIONS BY THE

19 FARM CREDIT SYSTEM INSURANCE CORPORA20 TION.

21 The Farm Credit Act of 1971 is amended by inserting

22 after section 5.61 (12 U.S.C. 2279a–10) the following:

23 ‘‘SEC. 5.61A. OVERSIGHT ACTIONS BY THE CORPORATION.

24 ‘‘(a) DEFINITIONS.—In this section, the term ‘institu25 tion’ means—
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1 ‘‘(1) an insured System bank; and

2 ‘‘(2) a production credit association or other as3 sociation making loans under section 7.6 with a di4 rect loan payable to the funding bank of the associa5 tion that comprises 20 percent or more of the funding

6 bank’s total loan volume net of nonaccrual loans.

7 ‘‘(b) CONSULTATION REGARDING PARTICIPATION OF

8 UNDERCAPITALIZED BANKS IN ISSUANCE OF INSURED OB9 LIGATIONS.—The Farm Credit Administration shall consult

10 with the Corporation prior to approving an insured obliga11 tion that is to be issued by or on behalf of, or participated

12 in by, any insured System bank that fails to meet the mini13 mum level for any capital requirement established by the

14 Farm Credit Administration for the bank.

15 ‘‘(c) CONSULTATION REGARDING APPLICATIONS FOR

16 MERGERS AND RESTRUCTURINGS.—

17 ‘‘(1) CORPORATION TO RECEIVE COPY OF TRANS18 ACTION APPLICATIONS.—On receiving an application

19 for a merger or restructuring of an institution, the

20 Farm Credit Administration shall forward a copy of

21 the application to the Corporation.

22 ‘‘(2) CONSULTATION REQUIRED.—If the proposed

23 merger or restructuring involves an institution that

24 fails to meet the minimum level for any capital re25 quirement established by the Farm Credit Adminis-
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1 tration applicable to the institution, the Farm Credit

2 Administration shall allow 30 days within which the

3 Corporation may submit the views and recommenda4 tions of the Corporation, including any conditions for

5 approval. In determining whether to approve or dis6 approve any proposed merger or restructuring, the

7 Farm Credit Administration shall give due consider8 ation to the views and recommendations of the Cor9 poration.

10 ‘‘SEC. 5.61B. AUTHORITY TO REGULATE GOLDEN PARA11 CHUTE AND INDEMNIFICATION PAYMENTS.

12 ‘‘(a) DEFINITIONS.—In this section:

13 ‘‘(1) GOLDEN PARACHUTE PAYMENT.—The term

14 ‘golden parachute payment’—

15 ‘‘(A) means a payment (or any agreement

16 to make a payment) in the nature of compensa17 tion for the benefit of any institution-related

18 party under an obligation of any Farm Credit

19 System institution that—

20 ‘‘(i) is contingent on the termination of

21 the party’s relationship with the institution;

22 and

23 ‘‘(ii) is received on or after the date on

24 which—

25 ‘‘(I) the institution is insolvent;
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1 ‘‘(II) a conservator or receiver is

2 appointed for the institution;

3 ‘‘(III) the institution has been as4 signed by the Farm Credit Adminis5 tration a composite CAMEL rating of

6 4 or 5 under the Farm Credit Admin7 istration Rating System, or an equiva8 lent rating; or

9 ‘‘(IV) the Corporation otherwise

10 determines that the institution is in a

11 troubled condition (as defined in regu12 lations issued by the Corporation); and

13 ‘‘(B) includes a payment that would be a

14 golden parachute payment but for the fact that

15 the payment was made before the date referred to

16 in subparagraph (A)(ii) if the payment was

17 made in contemplation of the occurrence of an

18 event described in any subclause of subparagraph

19 (A); but

20 ‘‘(C) does not include—

21 ‘‘(i) a payment made under a retire22 ment plan that is qualified (or is intended

23 to be qualified) under section 401 of the In24 ternal Revenue Code of 1986 or other non25 discriminatory benefit plan;
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1 ‘‘(ii) a payment made under a bona

2 fide supplemental executive retirement plan,

3 deferred compensation plan, or other ar4 rangement that the Corporation determines,

5 by regulation or order, to be permissible; or

6 ‘‘(iii) a payment made by reason of the

7 death or disability of an institution-related

8 party.

9 ‘‘(2) INDEMNIFICATION PAYMENT.—The term ‘in10 demnification payment’ means a payment (or any

11 agreement to make a payment) by any Farm Credit

12 System institution for the benefit of any person who

13 is or was an institution-related party, to pay or re14 imburse the person for any liability or legal expense

15 with regard to any administrative proceeding or civil

16 action instituted by the Farm Credit Administration

17 that results in a final order under which the person—

18 ‘‘(A) is assessed a civil money penalty; or

19 ‘‘(B) is removed or prohibited from partici20 pating in the conduct of the affairs of the insti21 tution.

22 ‘‘(3) INSTITUTION-RELATED PARTY.—The term

23 ‘institution-related party’ means—
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1 ‘‘(A) a director, officer, employee, or agent

2 for a Farm Credit System institution or any

3 conservator or receiver of such an institution;

4 ‘‘(B) a stockholder (other than another

5 Farm Credit System institution), consultant,

6 joint venture partner, or any other person deter7 mined by the Farm Credit Administration to be

8 a participant in the conduct of the affairs of a

9 Farm Credit System institution; and

10 ‘‘(C) an independent contractor (including

11 any attorney, appraiser, or accountant) that

12 knowingly or recklessly participates in any vio13 lation of any law or regulation, any breach of fi14 duciary duty, or any unsafe or unsound practice

15 that caused or is likely to cause more than a

16 minimal financial loss to, or a significant ad17 verse effect on, the Farm Credit System institu18 tion.

19 ‘‘(4) LIABILITY OR LEGAL EXPENSE.—The term

20 ‘liability or legal expense’ means—

21 ‘‘(A) a legal or other professional expense

22 incurred in connection with any claim, proceed23 ing, or action;
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1 ‘‘(B) the amount of, and any cost incurred

2 in connection with, any settlement of any claim,

3 proceeding, or action; and

4 ‘‘(C) the amount of, and any cost incurred

5 in connection with, any judgment or penalty im6 posed with respect to any claim, proceeding, or

7 action.

8 ‘‘(5) PAYMENT.—The term ‘payment’ means—

9 ‘‘(A) a direct or indirect transfer of any

10 funds or any asset; and

11 ‘‘(B) any segregation of any funds or assets

12 for the purpose of making, or under an agree13 ment to make, any payment after the date on

14 which the funds or assets are segregated, without

15 regard to whether the obligation to make the

16 payment is contingent on—

17 ‘‘(i) the determination, after that date,

18 of the liability for the payment of the

19 amount; or

20 ‘‘(ii) the liquidation, after that date, of

21 the amount of the payment.

22 ‘‘(b) PROHIBITION.—The Corporation may prohibit or

23 limit, by regulation or order, any golden parachute pay24 ment or indemnification payment by a Farm Credit Sys25 tem institution (including any conservator or receiver of
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1 the Federal Agricultural Mortgage Corporation) in troubled

2 condition (as defined in regulations issued by the Corpora3 tion).

4 ‘‘(c) FACTORS TO BE TAKEN INTO ACCOUNT.—The

5 Corporation shall prescribe, by regulation, the factors to be

6 considered by the Corporation in taking any action under

7 subsection (b). The factors may include—

8 ‘‘(1) whether there is a reasonable basis to believe

9 that an institution-related party has committed any

10 fraudulent act or omission, breach of trust or fidu11 ciary duty, or insider abuse with regard to the Farm

12 Credit System institution involved that has had a

13 material effect on the financial condition of the insti14 tution;

15 ‘‘(2) whether there is a reasonable basis to believe

16 that the institution-related party is substantially re17 sponsible for the insolvency of the Farm Credit Sys18 tem institution, the appointment of a conservator or

19 receiver for the institution, or the institution’s trou20 bled condition (as defined in regulations prescribed by

21 the Corporation);

22 ‘‘(3) whether there is a reasonable basis to believe

23 that the institution-related party has materially vio24 lated any applicable law or regulation that has had
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1 a material effect on the financial condition of the in2 stitution;

3 ‘‘(4) whether there is a reasonable basis to believe

4 that the institution-related party has violated or con5 spired to violate—

6 ‘‘(A) section 215, 657, 1006, 1014, or 1344

7 of title 18, United States Code; or

8 ‘‘(B) section 1341 or 1343 of title 18, Unit9 ed States Code, affecting a Farm Credit System

10 institution;

11 ‘‘(5) whether the institution-related party was in

12 a position of managerial or fiduciary responsibility;

13 and

14 ‘‘(6) the length of time that the party was related

15 to the Farm Credit System institution and the degree

16 to which—

17 ‘‘(A) the payment reasonably reflects com18 pensation earned over the period of employment;

19 and

20 ‘‘(B) the compensation represents a reason21 able payment for services rendered.

22 ‘‘(d) CERTAIN PAYMENTS PROHIBITED.—No Farm

23 Credit System institution may prepay the salary or any

24 liability or legal expense of any institution-related party

25 if the payment is made—
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1 ‘‘(1) in contemplation of the insolvency of the in2 stitution or after the commission of an act of insol3 vency; and

4 ‘‘(2) with a view to, or with the result of—

5 ‘‘(A) preventing the proper application of

6 the assets of the institution to creditors; or

7 ‘‘(B) preferring 1 creditor over another

8 creditor.

9 ‘‘(e) RULE OF CONSTRUCTION.—Nothing in this sec10 tion—

11 ‘‘(1) prohibits any Farm Credit System institu12 tion from purchasing any commercial insurance pol13 icy or fidelity bond, so long as the insurance policy

14 or bond does not cover any legal or liability expense

15 of an institution described in subsection (a)(2); or

16 ‘‘(2) limits the powers, functions, or responsibil17 ities of the Farm Credit Administration.’’.

18 SEC. 699. FARM CREDIT SYSTEM INSURANCE CORPORATION

19 BOARD OF DIRECTORS.

20 (a) IN GENERAL.—Section 5.53 of the Farm Credit

21 Act of 1971 (12 U.S.C. 2277a–2) is amended to read as

22 follows:
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1 ‘‘SEC. 5.53. BOARD OF DIRECTORS.

2 ‘‘(a) ESTABLISHMENT.—The Corporation shall be

3 managed by a Board of Directors that shall consist of the

4 members of the Farm Credit Administration Board.

5 ‘‘(b) CHAIRMAN.—The Board of Directors shall be

6 chaired by any Board member other than the Chairman

7 of the Farm Credit Administration Board.’’.

8 (b) CONFORMING AMENDMENTS.—

9 (1) Section 5314 of title 5, United States Code,

10 is amended by striking ‘‘Chairperson, Board of Direc11 tors of the Farm Credit System Insurance Corpora12 tion.’’.

13 (2) Section 5315 of title 5, United States Code,

14 is amended by striking ‘‘Members, Board of Directors

15 of the Farm Credit System Insurance Corporation.’’.

16 SEC. 699A. LIABILITY FOR MAKING CRIMINAL REFERRALS.

17 (a) IN GENERAL.—Any institution of the Farm Credit

18 System, or any director, officer, employee, or agent of a

19 Farm Credit System institution, that discloses to a Govern20 ment authority information proffered in good faith that

21 may be relevant to a possible violation of any law or regula22 tion shall not be liable to any person under any law of

23 the United States or any State—

24 (1) for the disclosure; or

25 (2) for any failure to notify the person involved

26 in the possible violation.
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1 (b) NO PROHIBITION ON DISCLOSURE.—Any institu2 tion of the Farm Credit System, or any director, officer,

3 employee, or agent of a Farm Credit System institution,

4 may disclose information to a Government authority that

5 may be relevant to a possible violation of any law or regula6 tion.

7 TITLE VII—RURAL

8 DEVELOPMENT

9 Subtitle A—Amendments to the

10 Food, Agriculture, Conservation,

11 and Trade Act of 1990

12 CHAPTER 1—GENERAL PROVISIONS

13 SEC. 701. RURAL INVESTMENT PARTNERSHIPS.

14 (a) IN GENERAL.—Section 2310(c)(1) of the Food, Ag15 riculture, Conservation, and Trade Act of 1990 (7 U.S.C.

16 2007(c)(1)) is amended by striking ‘‘1996’’ and inserting

17 ‘‘2002’’.

18 (b) AUTHORIZATION OF APPROPRIATIONS.—The first

19 sentence of section 2313(d) of the Food, Agriculture, Con20 servation, and Trade Act of 1990 (7 U.S.C. 2007c) is

21 amended by striking ‘‘$10,000,000’’ and all that follows

22 through ‘‘1996’’ and inserting ‘‘$4,700,000 for each of fiscal

23 years 1996 through 2002’’.
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1 SEC. 702. WATER AND WASTE FACILITY FINANCING.

2 Section 2322 of the Food, Agriculture, Conservation,

3 and Trade Act of 1990 (7 U.S.C. 1926–1) is repealed.

4 SEC. 703. RURAL WASTEWATER CIRCUIT RIDER PROGRAM.

5 Section 2324 of the Food, Agriculture, Conservation,

6 and Trade Act of 1990 (Public Law 101–624; 7 U.S.C. 1926

7 note) is repealed.

8 SEC. 704. TELEMEDICINE AND DISTANCE LEARNING SERV9 ICES IN RURAL AREAS.

10 Chapter 1 of subtitle D of title XXIII of the Food, Agri11 culture, Conservation, and Trade Act of 1990 (7 U.S.C.

12 950aaa et seq.) is amended to read as follows:

13 ‘‘CHAPTER 1—TELEMEDICINE AND DIS14 TANCE LEARNING SERVICES IN RURAL

15 AREAS

16 ‘‘SEC. 2331. PURPOSE.

17 ‘‘The purpose of the financing programs established

18 under this chapter is to encourage and improve telemedicine

19 services and distance learning services in rural areas

20 through the use of telecommunications, computer networks,

21 and related advanced technologies by students, teachers,

22 medical professionals, and rural residents.

23 ‘‘SEC. 2332. DEFINITIONS.

24 ‘‘In this chapter:
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1 ‘‘(1) CONSTRUCT.—The term ‘construct’ means to

2 construct, acquire, install, improve, or extend a facil3 ity or system.

4 ‘‘(2) COST OF MONEY LOAN.—The term ‘cost of

5 money loan’ means a loan made under this chapter

6 bearing interest at a rate equal to the then current

7 cost to the Federal Government of loans of similar

8 maturity.

9 ‘‘(3) SECRETARY.—The term ‘Secretary’ means

10 the Secretary of Agriculture.

11 ‘‘SEC. 2333. TELEMEDICINE AND DISTANCE LEARNING

12 SERVICES IN RURAL AREAS.

13 ‘‘(a) SERVICES TO RURAL AREAS.—The Secretary is

14 authorized to provide financial assistance for the purpose

15 of financing the construction of facilities and systems to

16 provide telemedicine services and distance learning services

17 to persons and entities in rural areas.

18 ‘‘(b) FINANCIAL ASSISTANCE.—

19 ‘‘(1) IN GENERAL.—Financial assistance shall

20 consist of grants or cost of money loans, or both.

21 ‘‘(2) FORM.—The Secretary shall determine the

22 portion of the financial assistance provided to a re23 cipient that consists of grants and that consists of cost

24 of money loans so as to result in the maximum fea25 sible repayment to the Federal Government of the fi-
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1 nancial assistance, based on the ability to repay of

2 the recipient and full utilization of funds made avail3 able to carry out this chapter.

4 ‘‘(c) RECIPIENTS.—

5 ‘‘(1) IN GENERAL.—The Secretary may provide

6 financial assistance under this chapter to—

7 ‘‘(A) entities using telemedicine services or

8 distance learning services, or both; and

9 ‘‘(B) entities providing or proposing to pro10 vide telemedicine service or distance learning

11 service, or both, to other persons at rates reflect12 ing the benefit of the financial assistance.

13 ‘‘(2) ELECTRIC OR TELECOMMUNICATIONS BOR14 ROWERS.—

15 ‘‘(A) LOANS TO BORROWERS.—Subject to

16 subparagraph (B), the Secretary may provide a

17 cost of money loan under this chapter to a bor18 rower of an electric or telecommunications loan

19 under the Rural Electrification Act of 1936 (7

20 U.S.C. 901 et seq.). A borrower receiving a cost

21 of money loan under this paragraph shall—

22 ‘‘(i) make the funds provided available

23 to entities that qualify under paragraph (1)

24 for projects satisfying the requirements of

25 this chapter;
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1 ‘‘(ii) use the funds provided to acquire,

2 install, improve, or extend a system for the

3 purposes of this chapter; or

4 ‘‘(iii) use the funds provided to install,

5 improve, or extend a facility for the pur6 poses of this chapter.

7 ‘‘(B) LIMITATIONS.—A borrower of an elec8 tric or telecommunications loan under the Rural

9 Electrification Act of 1936 shall—

10 ‘‘(i) make a system or facility funded

11 under subparagraph (A) available to enti12 ties that qualify under paragraph (1); and

13 ‘‘(ii) neither retain from the proceeds

14 of a loan provided under subparagraph (A),

15 nor assess a qualifying entity under para16 graph (1), any amount except as may be re17 quired to pay the actual costs incurred in

18 administering the loan funds or making the

19 system or facility available.

20 ‘‘(3) ASSISTANCE TO PROVIDE OR IMPROVE

21 SERVICES.—Financial assistance may be provided

22 under this chapter for a facility regardless of the loca23 tion of the facility if the Secretary determines that the

24 assistance is necessary to provide or improve
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1 telemedicine services or distance learning services in

2 a rural area.

3 ‘‘(d) PRIORITY.—The Secretary shall establish proce4 dures to prioritize financial assistance provided under this

5 chapter considering—

6 ‘‘(1) the need for the assistance in the affected

7 rural area;

8 ‘‘(2) the financial need of the applicant;

9 ‘‘(3) the population sparsity of the affected rural

10 area;

11 ‘‘(4) the local involvement in the project serving

12 the affected rural area;

13 ‘‘(5) geographic diversity among the recipients of

14 financial assistance;

15 ‘‘(6) the utilization of the telecommunications fa16 cilities of the existing telecommunications provider;

17 ‘‘(7) the portion of total project financing pro18 vided by the applicant from the funds of the appli19 cant;

20 ‘‘(8) the portion of project financing provided by

21 the applicant with funds obtained from non-Federal

22 sources;

23 ‘‘(9) the joint utilization of facilities financed by

24 other financial assistance;
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1 ‘‘(10) the coordination of the proposed project

2 with regional projects or networks;

3 ‘‘(11) service to the widest practical number of

4 persons within the general geographic area covered by

5 the financial assistance;

6 ‘‘(12) conformity with the State strategic plan as

7 prepared under section 381D of the Consolidated

8 Farm and Rural Development Act; and

9 ‘‘(13) other factors determined appropriate by

10 the Secretary.

11 ‘‘(e) MAXIMUM AMOUNT OF ASSISTANCE TO INDIVID12 UAL RECIPIENTS.—The Secretary may establish the maxi13 mum amount of financial assistance to be made available

14 to an individual recipient for each fiscal year under this

15 chapter by publishing notice in the Federal Register. The

16 notice shall be published not more than 45 days after funds

17 are made available to carry out this chapter during a fiscal

18 year.

19 ‘‘(f) USE OF FUNDS.—Financial assistance provided

20 under this chapter shall be used for—

21 ‘‘(1) the development and acquisition of instruc22 tional programming;

23 ‘‘(2) the development and acquisition, through

24 lease or purchase, of computer hardware and soft25 ware, audio and visual equipment, computer network
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1 components, telecommunications terminal equipment,

2 telecommunications transmission facilities, data ter3 minal equipment, or interactive video equipment, and

4 other facilities that would further telemedicine serv5 ices or distance learning services, or both;

6 ‘‘(3) providing technical assistance and instruc7 tion for the development or use of the programming,

8 equipment, or facilities referred to in paragraphs (1)

9 and (2); or

10 ‘‘(4) other uses that are consistent with this

11 chapter, as determined by the Secretary.

12 ‘‘(g) SALARIES AND EXPENSES.—Notwithstanding

13 subsection (f), financial assistance provided under this

14 chapter shall not be used for paying salaries of employees

15 or administrative expenses.

16 ‘‘(h) EXPEDITING COORDINATED TELEPHONE

17 LOANS.—

18 ‘‘(1) IN GENERAL.—The Secretary may establish

19 and carry out procedures to ensure that expedited

20 consideration and determination is given to applica21 tions for loans and advances of funds submitted by

22 local exchange carriers under this chapter and the

23 Rural Electrification Act of 1936 (7 U.S.C. 901 et

24 seq.) to enable the exchange carriers to provide ad25 vanced telecommunications services in rural areas in
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1 conjunction with any other projects carried out under

2 this chapter.

3 ‘‘(2) DEADLINE IMPOSED ON SECRETARY.—Not

4 later than 45 days after the receipt of a completed ap5 plication for an expedited telephone loan under para6 graph (1), the Secretary shall respond to the applica7 tion. The Secretary shall notify the applicant in writ8 ing of the decision of the Secretary regarding each ex9 pedited loan application.

10 ‘‘(i) NOTIFICATION OF LOCAL EXCHANGE CARRIER.—

11 ‘‘(1) APPLICANTS.—Each applicant for a grant

12 for a telemedicine or distance learning project estab13 lished under this chapter shall notify the appropriate

14 local telephone exchange carrier regarding the appli15 cation filed with the Secretary for the grant.

16 ‘‘(2) SECRETARY.—The Secretary shall—

17 ‘‘(A) publish notice of applications received

18 for grants under this chapter for telemedicine or

19 distance learning projects; and

20 ‘‘(B) make the applications available for in21 spection.

22 ‘‘SEC. 2334. ADMINISTRATION.

23 ‘‘(a) NONDUPLICATION.—The Secretary shall ensure

24 that facilities constructed using financial assistance pro-
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1 vided under this chapter do not duplicate adequate estab2 lished telemedicine services or distance learning services.

3 ‘‘(b) LOAN MATURITY.—The maturities of cost of

4 money loans shall be determined by the Secretary, based

5 on the useful life of the facility being financed, except that

6 the loan shall not be for a period of more than 10 years.

7 ‘‘(c) LOAN SECURITY AND FEASIBILITY.—The Sec8 retary shall make a cost of money loan only after determin9 ing that the security for the loan is reasonably adequate

10 and that the loan will be repaid within the period of the

11 loan.

12 ‘‘(d) ENCOURAGING CONSORTIA.—The Secretary shall

13 encourage the development of consortia to provide

14 telemedicine services or distance learning services, or both,

15 through telecommunications in rural areas served by a tele16 communications provider.

17 ‘‘(e) COOPERATION WITH OTHER AGENCIES.—The

18 Secretary shall cooperate, to the extent practicable, with

19 other Federal and State agencies with similar grant or loan

20 programs to pool resources for funding meritorious propos21 als in rural areas.

22 ‘‘(f) INFORMATIONAL EFFORTS.—The Secretary shall

23 establish and implement procedures to carry out informa24 tional efforts to advise potential end users located in rural
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1 areas of each State about the program authorized by this

2 chapter.

3 ‘‘SEC. 2335. REGULATIONS.

4 ‘‘Not later than 180 days after the effective date of the

5 Agricultural Reform and Improvement Act of 1996, the Sec6 retary shall issue regulations to carry out this chapter.

7 ‘‘SEC. 2335A. AUTHORIZATION OF APPROPRIATIONS.

8 ‘‘There are authorized to be appropriated to carry out

9 this chapter $100,000,000 for each of fiscal years 1996

10 through 2002.’’.

11 SEC. 705. LIMITATION ON AUTHORIZATION OF APPROPRIA12 TIONS FOR RURAL TECHNOLOGY GRANTS.

13 Section 2347 of the Food, Agriculture, Conservation,

14 and Trade Act of 1990 (Public Law 101–624; 104 Stat.

15 4034) is amended—

16 (1) by striking ‘‘(a) IN GENERAL.—’’; and

17 (2) by striking subsection (b).

18 SEC. 706. MONITORING THE ECONOMIC PROGRESS OF

19 RURAL AMERICA.

20 Section 2382 of the Food, Agriculture, Conservation,

21 and Trade Act of 1990 (Public Law 101–624; 13 U.S.C.

22 141 note) is repealed.
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1 SEC. 707. ANALYSIS BY OFFICE OF TECHNOLOGY ASSESS2 MENT.

3 Section 2385 of the Food, Agriculture, Conservation,

4 and Trade Act of 1990 (Public Law 101–624; 7 U.S.C.

5 950aaa–4 note) is repealed.

6 SEC. 708. RURAL HEALTH INFRASTRUCTURE IMPROVE7 MENT.

8 Section 2391 of the Food, Agriculture, Conservation,

9 and Trade Act of 1990 (Public Law 101–624; 7 U.S.C. 2662

10 note) is repealed.

11 SEC. 709. CENSUS OF AGRICULTURE.

12 Section 2392 of the Food, Agriculture, Conservation,

13 and Trade Act of 1990 (Public Law 101–624; 104 Stat.

14 4057) is repealed.

15 CHAPTER 2—ALTERNATIVE AGRICUL16 TURAL RESEARCH AND COMMER17 CIALIZATION

18 SEC. 721. DEFINITIONS.

19 Section 1657(c) of the Food, Agriculture, Conservation,

20 and Trade Act of 1990 (7 U.S.C. 5901(c)) is amended—

21 (1) by striking paragraphs (3) and (4);

22 (2) by redesignating paragraph (5) as para23 graph (3);

24 (3) by redesignating paragraphs (6) through (12)

25 as paragraphs (7) through (13), respectively; and
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1 (4) by inserting after paragraph (3) (as redesig2 nated by paragraph (2)) the following:

3 ‘‘(4) CORPORATE BOARD.—The term ‘Corporate

4 Board’ means the Board of Directors of the Corpora5 tion described in section 1659.

6 ‘‘(5) CORPORATION.—The term ‘Corporation’

7 means the Alternative Agricultural Research and

8 Commercialization Corporation established under sec9 tion 1658.

10 ‘‘(6) EXECUTIVE DIRECTOR.—The term ‘Execu11 tive Director’ means the Executive Director of the

12 Corporation appointed under section 1659(d)(2).’’.

13 SEC. 722. ALTERNATIVE AGRICULTURAL RESEARCH AND

14 COMMERCIALIZATION CORPORATION.

15 (a) IN GENERAL.—Section 1658 of the Food, Agri16 culture, Conservation, and Trade Act of 1990 (7 U.S.C.

17 5902) is amended to read as follows:

18 ‘‘SEC. 1658. ALTERNATIVE AGRICULTURAL RESEARCH AND

19 COMMERCIALIZATION CORPORATION.

20 ‘‘(a) ESTABLISHMENT.—To carry out this subtitle,

21 there is created a body corporate to be known as the Alter22 native Agricultural Research and Commercialization Cor23 poration, which shall be an agency of the United States,

24 within the Department of Agriculture, subject to the general
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1 supervision and direction of the Secretary, except as specifi2 cally provided for in this subtitle.

3 ‘‘(b) PURPOSE.—The purpose of the Corporation is

4 to—

5 ‘‘(1) expedite the development and market pene6 tration of industrial, nonfood, nonfeed products from

7 agricultural and forestry materials; and

8 ‘‘(2) assist the private sector in bridging the gap

9 between research results and the commercialization of

10 the research.

11 ‘‘(c) PLACE OF INCORPORATION.—The Corporation

12 shall be located in the District of Columbia.

13 ‘‘(d) CENTRAL OFFICE.—The Secretary shall provide

14 facilities for the principal office of the Corporation within

15 the Washington, D.C. metropolitan area.

16 ‘‘(e) WHOLLY-OWNED GOVERNMENT CORPORATION.—

17 The Corporation shall be considered a wholly-owned govern18 ment corporation for purposes of chapter 91 of title 31,

19 United States Code.

20 ‘‘(f) GENERAL POWERS.—In addition to any other

21 powers granted to the Corporation under this subtitle, the

22 Corporation—

23 ‘‘(1) shall have succession in its corporate name;
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1 ‘‘(2) may adopt, alter, and rescind any bylaw

2 and adopt and alter a corporate seal, which shall be

3 judicially noticed;

4 ‘‘(3) may enter into any agreement or contract

5 with a person or private or governmental agency, ex6 cept that the Corporation shall not provide any fi7 nancial assistance unless specifically authorized

8 under this subtitle;

9 ‘‘(4) may lease, purchase, accept a gift or dona10 tion of, or otherwise acquire, use, own, hold, improve,

11 or otherwise deal in or with, and sell, convey, mort12 gage, pledge, lease, exchange, or otherwise dispose of,

13 any property, real, personal, or mixed, or any inter14 est in property, as the Corporation considers nec15 essary in the transaction of the business of the Cor16 poration, except that this paragraph shall not provide

17 authority for carrying out a program of real estate

18 investment;

19 ‘‘(5) may sue and be sued in the corporate name

20 of the Corporation, except that—

21 ‘‘(A) no attachment, injunction, garnish22 ment, or similar process shall be issued against

23 the Corporation or property of the Corporation;

24 and
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1 ‘‘(B) exclusive original jurisdiction shall re2 side in the district courts of the United States,

3 but the Corporation may intervene in any court

4 in any suit, action, or proceeding in which the

5 Corporation has an interest;

6 ‘‘(6) may independently retain legal representa7 tion;

8 ‘‘(7) may provide for and designate such com9 mittees, and the functions of the committees, as the

10 Corporate Board considers necessary or desirable,

11 ‘‘(8) may indemnify the Executive Director and

12 other officers of the Corporation, as the Corporate

13 Board considers necessary and desirable, except that

14 the Executive Director and officers shall not be in15 demnified for an act outside the scope of employment;

16 ‘‘(9) may, with the consent of any board, com17 mission, independent establishment, or executive de18 partment of the Federal Government, including any

19 field service, use information, services, facilities, offi20 cials, and employees in carrying out this subtitle, and

21 pay for the use, which payments shall be credited to

22 the applicable appropriation that incurred the ex23 pense;

24 ‘‘(10) may obtain the services and fix the com25 pensation of any consultant and otherwise procure
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1 temporary and intermittent services under section

2 3109(b) of title 5, United States Code;

3 ‘‘(11) may use the United States mails on the

4 same terms and conditions as the Executive agencies

5 of the Federal Government;

6 ‘‘(12) shall have the rights, privileges, and im7 munities of the United States with respect to the right

8 to priority of payment with respect to debts due from

9 bankrupt, insolvent, or deceased creditors;

10 ‘‘(13) may collect or compromise any obligations

11 assigned to or held by the Corporation, including any

12 legal or equitable rights accruing to the Corporation;

13 ‘‘(14) shall determine the character of, and neces14 sity for, obligations and expenditures of the Corpora15 tion and the manner in which the obligations and ex16 penditures shall be incurred, allowed, and paid, sub17 ject to provisions of law specifically applicable to

18 Government corporations;

19 ‘‘(15) may make final and conclusive settlement

20 and adjustment of any claim by or against the Cor21 poration or a fiscal officer of the Corporation;

22 ‘‘(16) may sell assets, loans, and equity interests

23 acquired in connection with the financing of projects

24 funded by the Corporation; and
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1 ‘‘(17) may exercise all other lawful powers nec2 essarily or reasonably related to the establishment of

3 the Corporation to carry out this subtitle and the

4 powers, purposes, functions, duties, and authorized

5 activities of the Corporation.

6 ‘‘(g) SPECIFIC POWERS.—To carry out this subtitle,

7 the Corporation shall have the authority to—

8 ‘‘(1) make grants to, and enter into cooperative

9 agreements and contracts with, eligible applicants for

10 research, development, and demonstration projects in

11 accordance with section 1660;

12 ‘‘(2) make loans and interest subsidy payments

13 and invest venture capital in accordance with section

14 1661;

15 ‘‘(3) collect and disseminate information con16 cerning State, regional, and local commercialization

17 projects;

18 ‘‘(4) search for new nonfood, nonfeed products

19 that may be produced from agricultural commodities

20 and for processes to produce the products;

21 ‘‘(5) administer, maintain, and dispense funds

22 from the Alternative Agricultural Research and Com23 mercialization Revolving Fund to facilitate the con24 duct of activities under this subtitle; and
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1 ‘‘(6) engage in other activities incident to carry2 ing out the functions of the Corporation.’’.

3 (b) WHOLLY OWNED GOVERNMENT CORPORATION.—

4 Section 9101(3) of title 31, United States Code, is amend5 ed—

6 (1) by redesignating subparagraph (N) (relating

7 to the Uranium Enrichment Corporation) as sub8 paragraph (O); and

9 (2) by adding at the end the following:

10 ‘‘(P) the Alternative Agricultural Research

11 and Commercialization Corporation.’’.

12 (c) CONFORMING AMENDMENT.—Section 211(b)(5) of

13 the Department of Agriculture Reorganization Act of 1994

14 (7 U.S.C. 6911(b)(5)) is amended by striking ‘‘Alternative

15 Agricultural Research and Commercialization Board’’ and

16 inserting ‘‘Corporate Board of the Alternative Agricultural

17 Research and Commercialization Corporation’’.

18 SEC. 723. BOARD OF DIRECTORS, EMPLOYEES, AND FACILI19 TIES.

20 (a) IN GENERAL.—Section 1659 of the Food, Agri21 culture, Conservation, and Trade Act of 1990 (7 U.S.C.

22 5903) is amended to read as follows:
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1 ‘‘SEC. 1659. BOARD OF DIRECTORS, EMPLOYEES, AND FA2 CILITIES.

3 ‘‘(a) IN GENERAL.—The powers of the Corporation

4 shall be vested in a Corporate Board.

5 ‘‘(b) MEMBERS OF THE CORPORATE BOARD.—The

6 Corporate Board shall consist of 10 members as follows:

7 ‘‘(1) The Under Secretary of Agriculture for

8 Rural Economic and Community Development.

9 ‘‘(2) The Under Secretary of Agriculture for Re10 search, Education, and Economics.

11 ‘‘(3) 4 members appointed by the Secretary, of

12 whom—

13 ‘‘(A) at least 1 member shall be a represent14 ative of the leading scientific disciplines relevant

15 to the activities of the Corporation;

16 ‘‘(B) at least 1 member shall be a producer

17 or processor of agricultural commodities; and

18 ‘‘(C) at least 1 member shall be a person

19 who is privately engaged in the commercializa20 tion of new nonfood, nonfeed products from agri21 cultural commodities.

22 ‘‘(4) 2 members appointed by the Secretary

23 who—

24 ‘‘(A) have expertise in areas of applied re25 search relating to the development or commer-
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1 cialization of new nonfood, nonfeed products;

2 and

3 ‘‘(B) shall be appointed from a group of at

4 least 4 individuals nominated by the Director of

5 the National Science Foundation if the nomina6 tions are made within 60 days after the date a

7 vacancy occurs.

8 ‘‘(5) 2 members appointed by the Secretary

9 who—

10 ‘‘(A) have expertise in financial and mana11 gerial matters; and

12 ‘‘(B) shall be appointed from a group of at

13 least 4 individuals nominated by the Secretary

14 of Commerce if the nominations are made within

15 60 days after the date a vacancy occurs.

16 ‘‘(c) RESPONSIBILITIES OF THE CORPORATE

17 BOARD.—

18 ‘‘(1) IN GENERAL.—The Corporate Board shall—

19 ‘‘(A) be responsible for the general super20 vision of the Corporation and Regional Centers

21 established under section 1663;

22 ‘‘(B) determine (in consultation with Re23 gional Centers) high priority commercialization

24 areas to receive assistance under section 1663;
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1 ‘‘(C) review any grant, contract, or coopera2 tive agreement to be made or entered into by the

3 Corporation under section 1660 and any finan4 cial assistance to be provided under section 1661;

5 ‘‘(D) make the final decision, by majority

6 vote, on whether and how to provide assistance

7 to an applicant; and

8 ‘‘(E) using the results of the hearings and

9 other information and data collected under para10 graph (2), develop and establish a budget plan

11 and a long-term operating plan to carry out this

12 subtitle.

13 ‘‘(2) AUTHORITY OF THE SECRETARY.—

14 ‘‘(A) IN GENERAL.—The Secretary shall va15 cate and remand to the Board for reconsider16 ation any decision made pursuant to paragraph

17 (1)(D) if the Secretary determines that there has

18 been a violation of subsection (j), or any conflict

19 of interest provisions of the bylaws of the Board,

20 with respect to the decision.

21 ‘‘(B) REASONS.—In the case of any viola22 tion and referral of a funding decision to the

23 Board, the Secretary shall inform the Board of

24 the reasons for any remand pursuant to sub25 paragraph (A).
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1 ‘‘(d) CHAIRPERSON.—The members of the Corporate

2 Board shall select a Chairperson from among the members

3 of the Corporate Board. The term of office of the Chair4 person shall be 2 years. The members referred to in para5 graphs (1) and (2) of subsection (b) may not serve as Chair6 person.

7 ‘‘(e) EXECUTIVE DIRECTOR.—

8 ‘‘(1) IN GENERAL.—The Executive Director of

9 the Corporation shall be the chief executive officer of

10 the Corporation, with such power and authority as

11 may be conferred by the Corporate Board. The Execu12 tive Director shall be appointed by the Corporate

13 Board. The appointment shall be subject to the ap14 proval of the Secretary.

15 ‘‘(2) COMPENSATION.—The Executive Director

16 shall receive basic pay at the rate provided for level

17 IV of the Executive Schedule under section 5315 of

18 title 5, United States Code.

19 ‘‘(f) OFFICERS.—The Corporate Board shall establish

20 the offices and appoint the officers of the Corporation, in21 cluding a Secretary, and define the duties of the officers

22 in a manner consistent with this subtitle.

23 ‘‘(g) MEETINGS.—The Corporate Board shall meet at

24 least 3 times each fiscal year at the call of the Chairperson

25 or at the request of the Executive Director. The location of
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1 the meetings shall be subject to approval of the Executive

2 Director. A quorum of the Corporate Board shall consist

3 of a majority of the members. The decisions of the Corporate

4 Board shall be made by majority vote.

5 ‘‘(h) TERM; VACANCIES.—

6 ‘‘(1) IN GENERAL.—The term of office of a mem7 ber of the Corporate Board shall be 4 years, except

8 that the members initially appointed shall be ap9 pointed to serve staggered terms. A member appointed

10 to fill a vacancy for an unexpired term may be ap11 pointed only for the remainder of the term. A vacancy

12 on the Corporate Board shall be filled in the same

13 manner as the original appointment. The Secretary

14 shall not remove a member of the Corporate Board ex15 cept for cause.

16 ‘‘(2) TRANSITION MEASURE.—An individual who

17 is serving on the Alternative Agricultural Research

18 and Commercialization Board on the day before the

19 effective date of the Agricultural Reform and Im20 provement Act of 1996 may be appointed to the Cor21 porate Board by the Secretary for a term that does

22 not exceed the term of the individual on the Alter23 native Agricultural Research and Commercialization

24 Board if the Act had not been enacted.
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1 ‘‘(i) COMPENSATION.—A member of the Corporate

2 Board who is an officer or employee of the United States

3 shall not receive any additional compensation by reason of

4 service on the Corporate Board. Any other member shall

5 receive, for each day (including travel time) the member

6 is engaged in the performance of the functions of the Cor7 porate Board, compensation at a rate not to exceed the

8 daily equivalent of the annual rate in effect for Level IV

9 of the Executive Schedule. A member of the Corporate Board

10 shall be reimbursed for travel, subsistence, and other nec11 essary expenses incurred by the member in the performance

12 of the duties of the member.

13 ‘‘(j) CONFLICT OF INTEREST; FINANCIAL DISCLO14 SURE.—

15 ‘‘(1) CONFLICT OF INTEREST.—Except as pro16 vided in paragraph (3), no member of the Corporate

17 Board shall vote on any matter respecting any appli18 cation, contract, claim, or other particular matter

19 pending before the Corporation, in which, to the

20 knowledge of the member, the member, spouse, or child

21 of the member, partner, or organization in which the

22 member is serving as officer, director, trustee, partner,

23 or employee, or any person or organization with

24 whom the member is negotiating or has any arrange-
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1 ment concerning prospective employment, has a fi2 nancial interest.

3 ‘‘(2) VIOLATIONS.—Action by a member of the

4 Corporate Board that is contrary to the prohibition

5 contained in paragraph (1) shall be cause for removal

6 of the member, but shall not impair or otherwise af7 fect the validity of any otherwise lawful action by the

8 Corporation in which the member participated.

9 ‘‘(3) EXCEPTIONS.—The prohibitions contained

10 in paragraph (1) shall not apply if a member of the

11 Corporate Board advises the Corporate Board of the

12 nature of the particular matter in which the member

13 proposes to participate, and if the member makes a

14 full disclosure of the financial interest, prior to any

15 participation, and the Corporate Board determines,

16 by majority vote, that the financial interest is too re17 mote or too inconsequential to affect the integrity of

18 the member’s services to the Corporation in that mat19 ter. The member involved shall not vote on the deter20 mination.

21 ‘‘(4) FINANCIAL DISCLOSURE.—A Board member

22 shall be subject to the financial disclosure require23 ments applicable to a special Government employee

24 (as defined in section 202(a) of title 18, United States

25 Code).
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1 ‘‘(k) DELEGATION OF AUTHORITY.—

2 ‘‘(1) IN GENERAL.—The Corporate Board may,

3 by resolution, delegate to the Chairperson, the Execu4 tive Director, or any other officer or employee any

5 function, power, or duty assigned to the Corporation

6 under this subtitle, other than a function, power, or

7 duty expressly vested in the Corporate Board by sub8 sections (c) through (n).

9 ‘‘(2) PROHIBITION ON DELEGATION.—Notwith10 standing any other law, the Secretary and any other

11 officer or employee of the United States shall not

12 make any delegation to the Corporate Board, the

13 Chairperson, the Executive Director, or the Corpora14 tion of any power, function, or authority not ex15 pressly authorized by this subtitle, unless the delega16 tion is made pursuant to an authority in law that ex17 pressly makes reference to this section.

18 ‘‘(3) REORGANIZATION ACT.—Notwithstanding

19 any other law, the President (through authorities pro20 vided under chapter 9, title 5, United States Code)

21 may not authorize the transfer to the Corporation of

22 any power, function, or authority in addition to pow23 ers, functions, and authorities provided by law.

24 ‘‘(l) BYLAWS.—Notwithstanding section 1658(f)(2), the

25 Corporate Board shall adopt, and may from time to time
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1 amend, any bylaw that is necessary for the proper manage2 ment and functioning of the Corporation. The Corporate

3 Board shall not adopt any bylaw that has not been reviewed

4 and approved by the Secretary.

5 ‘‘(m) ORGANIZATION.—The Corporate Board shall

6 provide a system of organization to fix responsibility and

7 promote efficiency.

8 ‘‘(n) PERSONNEL AND FACILITIES OF CORPORA9 TION.—

10 ‘‘(1) APPOINTMENT AND COMPENSATION OF PER11 SONNEL.—The Corporation may select and appoint

12 officers, attorneys, employees, and agents, who shall be

13 vested with such powers and duties as the Corpora14 tion may determine.

15 ‘‘(2) USE OF FACILITIES AND SERVICES OF THE

16 DEPARTMENT OF AGRICULTURE.—Notwithstanding

17 any other provision of law, to perform the responsibil18 ities of the Corporation under this subtitle, the Cor19 poration may partially or jointly utilize the facilities

20 of and the services of employees of the Department of

21 Agriculture, without cost to the Corporation.

22 ‘‘(3) GOVERNMENT EMPLOYMENT LAWS.—An of23 ficer or employee of the Corporation shall be subject

24 to all laws of the United States relating to govern25 mental employment.’’.
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1 (b) CONFORMING AMENDMENT.—Section 5315 of title

2 V, United States Code, is amended by adding at the end

3 the following:

4 ‘‘Executive Director of the Alternative Agricul5 tural Research and Commercialization Corporation.’’.

6 SEC. 724. RESEARCH AND DEVELOPMENT GRANTS, CON7 TRACTS, AND AGREEMENTS.

8 Section 1660 of the Food, Agriculture, Conservation,

9 and Trade Act of 1990 (7 U.S.C. 5904) is amended—

10 (1) by striking ‘‘Center’’ each place it appears

11 and inserting ‘‘Corporation’’;

12 (2) in subsection (c), by striking ‘‘Board’’ and

13 inserting ‘‘Corporate Board’’; and

14 (3) in subsection (f), by striking ‘‘non-Center’’

15 and inserting ‘‘non-Corporation’’.

16 SEC. 725. COMMERCIALIZATION ASSISTANCE.

17 Section 1661 of the Food, Agriculture, Conservation,

18 and Trade Act of 1990 (7 U.S.C. 5905) is amended—

19 (1) by striking ‘‘Center’’ each place it appears

20 and inserting ‘‘Corporation’’;

21 (2) by striking ‘‘Board’’ each place it appears

22 and inserting ‘‘Corporate Board’’;

23 (3) by striking subsection (c);

24 (4) by redesignating subsections (d), (e), and (f)

25 as subsections (c), (d), and (e), respectively; and
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1 (5) in subsection (c) (as so redesignated)—

2 (A) in the subsection heading of paragraph

3 (1), by striking ‘‘DIRECTOR’’ and inserting ‘‘EX4 ECUTIVE DIRECTOR’’; and

5 (B) by striking ‘‘Director’’ each place it ap6 pears and inserting ‘‘Executive Director’’.

7 SEC. 726. GENERAL RULES REGARDING THE PROVISION OF

8 ASSISTANCE.

9 Section 1662 of the Food, Agriculture, Conservation,

10 and Trade Act of 1990 (7 U.S.C. 5906) is amended—

11 (1) by striking ‘‘Center’’ each place it appears

12 (except in subsection (b)) and inserting ‘‘Corpora13 tion’’;

14 (2) by striking ‘‘Board’’ each place it appears

15 and inserting ‘‘Corporate Board’’; and

16 (3) in subsection (b)—

17 (A) in the second sentence, by striking

18 ‘‘Board, a Regional Center, or the Advisory

19 Council’’ and inserting ‘‘Board or a Regional

20 Center’’; and

21 (B) by striking the third sentence.

22 SEC. 727. REGIONAL CENTERS.

23 Section 1663 of the Food, Agriculture, Conservation,

24 and Trade Act of 1990 (7 U.S.C. 5907) is amended—
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1 (1) by striking ‘‘Board’’ each place it appears

2 and inserting ‘‘Corporate Board’’;

3 (2) in subsection (e)(8), by striking ‘‘Center’’ and

4 inserting ‘‘Corporation’’; and

5 (3) in subsection (f)—

6 (A) in paragraph (2), by striking ‘‘in con7 sultation with the Advisory Council appointed

8 under section 1661(c)’’; and

9 (B) by striking paragraphs (3) and (4) and

10 inserting the following:

11 ‘‘(3) RECOMMENDATION.—The Regional Direc12 tor, based on the comments of the reviewers, shall

13 make and submit a recommendation to the Board. A

14 recommendation submitted by a Regional Director

15 shall not be binding on the Board.’’.

16 SEC. 728. ALTERNATIVE AGRICULTURAL RESEARCH AND

17 COMMERCIALIZATION REVOLVING FUND.

18 Section 1664 of the Food, Agriculture, Conservation,

19 and Trade Act of 1990 (7 U.S.C. 5908) is amended to read

20 as follows:

21 ‘‘SEC. 1664. ALTERNATIVE AGRICULTURAL RESEARCH AND

22 COMMERCIALIZATION REVOLVING FUND.

23 ‘‘(a) ESTABLISHMENT.—There is established in the

24 Treasury of the United States a revolving fund to be known

25 as the Alternative Agricultural Research and Commer-
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1 cialization Revolving Fund. The Fund shall be available to

2 the Corporation, without fiscal year limitation, to carry out

3 the authorized programs and activities of the Corporation

4 under this subtitle.

5 ‘‘(b) CONTENTS OF FUND.—There shall be deposited in

6 the Fund—

7 ‘‘(1) such amounts as may be appropriated or

8 transferred to support programs and activities of the

9 Corporation;

10 ‘‘(2) payments received from any source for

11 products, services, or property furnished in connection

12 with the activities of the Corporation;

13 ‘‘(3) fees and royalties collected by the Corpora14 tion from licensing or other arrangements relating to

15 commercialization of products developed through

16 projects funded in whole or part by grants, contracts,

17 or cooperative agreements executed by the Corpora18 tion;

19 ‘‘(4) proceeds from the sale of assets, loans, and

20 equity interests made in furtherance of the purposes

21 of the Corporation;

22 ‘‘(5) donations or contributions accepted by the

23 Corporation to support authorized programs and ac24 tivities; and
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1 ‘‘(6) any other funds acquired by the Corpora2 tion.

3 ‘‘(c) FUNDING ALLOCATIONS.—Funding of projects

4 and activities under this subtitle shall be subject to the fol5 lowing restrictions:

6 ‘‘(1) Of the total amount of funds made available

7 for a fiscal year under this subtitle—

8 ‘‘(A) not more than the lesser of 15 percent

9 or $3,000,000 may be set aside to be used for au10 thorized administrative expenses of the Corpora11 tion in carrying out the functions of the Cor12 poration;

13 ‘‘(B) not more than 1 percent may be set

14 aside to be used for generic studies and specific

15 reviews of individual proposals for financial as16 sistance; and

17 ‘‘(C) except as provided in subsection (e),

18 not less than 84 percent shall be set aside to be

19 awarded to qualified applicants who file project

20 applications with, or respond to requests for pro21 posals from, the Corporation under sections 1660

22 and 1661.

23 ‘‘(2) Any funds remaining uncommitted at the

24 end of a fiscal year shall be credited to the Fund and
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1 added to the total program funds available to the Cor2 poration for the next fiscal year.

3 ‘‘(d) AUTHORIZED ADMINISTRATIVE EXPENSES.—For

4 the purposes of this section, authorized administrative ex5 penses shall include all ordinary and necessary expenses,

6 including all compensation for personnel and consultants,

7 expenses for computer usage, or space needs of the Corpora8 tion and similar expenses. Funds authorized for adminis9 trative expenses shall not be available for the acquisition

10 of real property.

11 ‘‘(e) PROJECT MONITORING.—The Board may estab12 lish, in the bylaws of the Board, a percent of funds provided

13 under subsection (c), not to exceed 1 percent per project

14 award, for any commercialization project to be expended

15 from project awards that shall be used to ensure that project

16 funds are being utilized in accordance with the project

17 agreement.

18 ‘‘(f) TERMINATION OF THE FUND.—On expiration of

19 the authority provided by this subtitle, all assets (after pay20 ment of all outstanding obligations) of the Fund shall revert

21 to the general fund of the Treasury.

22 ‘‘(g) AUTHORIZATION OF APPROPRIATIONS; CAPITAL23 IZATION.—

24 ‘‘(1) AUTHORIZATION OF APPROPRIATION.—

25 There are authorized to be appropriated to the Fund
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1 $75,000,000 for each of fiscal years 1996 through

2 2002.

3 ‘‘(2) CAPITALIZATION.—The Executive Director

4 may pay as capital of the Corporation, from amounts

5 made available through annual appropriations,

6 $75,000,000 for each of fiscal years 1996 through

7 2002. On the payment of capital by the Executive Di8 rector, the Corporation shall issue an equivalent

9 amount of capital stock to the Secretary of the Treas10 ury.

11 ‘‘(3) TRANSFER.—All obligations, assets, and re12 lated rights and responsibilities of the Alternative Ag13 ricultural Research and Commercialization Center es14 tablished under section 1658 of the Food, Agriculture,

15 Conservation, and Trade Act of 1990 (7 U.S.C. 5902)

16 (as in effect on the day before the effective date of the

17 Agricultural Reform and Improvement Act of 1996)

18 are transferred to the Corporation.’’.

19 SEC. 729. PROCUREMENT PREFERENCES FOR PRODUCTS

20 RECEIVING CORPORATION ASSISTANCE.

21 Subtitle G of title XVI of the Food, Agriculture, Con22 servation, and Trade Act of 1990 (7 U.S.C. 5901 et seq.)

23 is amended by adding at the end the following:
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1 ‘‘SEC. 1665. PROCUREMENT OF ALTERNATIVE AGRICUL2 TURAL RESEARCH AND COMMERCIALIZATION

3 PRODUCTS.

4 ‘‘(a) DEFINITION OF EXECUTIVE AGENCY.—In this

5 section, the term ‘executive agency’ has the meaning pro6 vided the term in section 4(1) of the Office of Federal Pro7 curement Policy Act (41 U.S.C. 403(1)).

8 ‘‘(b) PROCUREMENT.—To further the achievement of

9 the purposes specified in section 1657(b), an executive agen10 cy may, for any procurement involving the acquisition of

11 property, establish set-asides and preferences for property

12 that has been commercialized with assistance provided

13 under this subtitle.

14 ‘‘(c) SET-ASIDES.—Procurements solely for property

15 may be set-aside exclusively for products developed with

16 commercialization assistance provided under section 1661.

17 ‘‘(d) PREFERENCES.—Preferences for property devel18 oped with assistance provided under this subtitle in pro19 curements involving the acquisition of property may be—

20 ‘‘(1) a price preference, if the procurement is

21 solely for property, of not greater than a percentage

22 to be determined within the sole discretion of the head

23 of the procuring agency; or

24 ‘‘(2) a technical evaluation preference included

25 as an award factor or subfactor as determined within

26 the sole discretion of the head of the procuring agency.
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1 ‘‘(e) NOTICE.—Each competitive solicitation or invita2 tion for bids selected by an executive agency for a set-aside

3 or preference under this section shall contain a provision

4 notifying offerors where a list of products eligible for the

5 set aside or preference may be obtained.

6 ‘‘(f) ELIGIBILITY.—Offerors shall receive the set aside

7 or preference required under this section if, in the case of

8 products developed with financial assistance under—

9 ‘‘(1) section 1660, less than 10 years have

10 elapsed since the expiration of the grant, cooperative

11 agreement, or contract;

12 ‘‘(2) paragraph (1) or (2) of section 1661(a), less

13 than 5 years have elapsed since the date the loan was

14 made or insured;

15 ‘‘(3) section 1661(a)(3), less than 5 years have

16 elapsed since the date of sale of any remaining gov17 ernment equity interest in the company; or

18 ‘‘(4) section 1661(a)(4), less than 5 years have

19 elapsed since the date of the final payment on the re20 payable grant.’’.

21 SEC. 730. BUSINESS PLAN AND FEASIBILITY STUDY AND RE22 PORT.

23 (a) BUSINESS PLAN.—Not later than 180 days after

24 the date of enactment of this Act, the Alternative Agricul25 tural Research and Commercialization Corporation estab-
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1 lished under section 1658 of the Food, Agriculture, Con2 servation, and Trade Act of 1990 (7 U.S.C. 5902) shall—

3 (1) develop a 5-year business plan pursuant to

4 section 1659(c)(1)(E) of the Food, Agriculture, Con5 servation, and Trade Act of 1990 (as amended by sec6 tion 723); and

7 (2) submit the plan to the Secretary of Agri8 culture, the Committee on Agriculture of the House of

9 Representatives, and the Committee on Agriculture,

10 Nutrition, and Forestry of the Senate.

11 (b) FEASIBILITY STUDY AND REPORT.—

12 (1) STUDY.—The Secretary of Agriculture shall

13 conduct a study of and prepare a report on the con14 tinued feasibility of the Alternative Agricultural Re15 search and Commercialization Corporation. In con16 ducting the study, the Secretary shall examine options

17 for privatizing the Corporation and converting the

18 Corporation to a Government sponsored enterprise.

19 (2) REPORT.—Not later than December 31, 2001,

20 the Secretary shall transmit the report to the Com21 mittee on Agriculture of the House of Representatives

22 and the Committee on Agriculture, Nutrition, and

23 Forestry of the Senate.
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1 Subtitle B—Amendments to the

2 Consolidated Farm and Rural

3 Development Act

4 CHAPTER 1—GENERAL PROVISIONS

5 SEC. 741. WATER AND WASTE FACILITY LOANS AND

6 GRANTS.

7 (a) IN GENERAL.—Section 306(a) of the Consolidated

8 Farm and Rural Development Act (7 U.S.C. 1926(a)) is

9 amended—

10 (1) in the first sentence of paragraph (2), by

11 striking ‘‘$500,000,000’’ and inserting

12 ‘‘$590,000,000’’;

13 (2) by striking paragraph (7) and inserting the

14 following:

15 ‘‘(7) DEFINITION OF RURAL AND RURAL

16 AREAS.—For the purpose of water and waste disposal

17 grants and direct and guaranteed loans provided

18 under paragraphs (1) and (2), the terms ‘rural’ and

19 ‘rural area’ shall mean a city, town, or unincor20 porated area that has a population of no more than

21 10,000 inhabitants.’’;

22 (3) by striking paragraphs (9), (10), and (11)

23 and inserting the following:

24 ‘‘(9) CONFORMITY WITH STATE DRINKING WATER

25 STANDARDS.—No Federal funds shall be made avail-
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1 able under this section unless the Secretary deter2 mines that the water system seeking funding will

3 make significant progress toward meeting the stand4 ards established under title XIV of the Public Health

5 Service Act (commonly known as the ‘Safe Drinking

6 Water Act’) (42 U.S.C. 300f et seq.).

7 ‘‘(10) CONFORMITY WITH FEDERAL AND STATE

8 WATER POLLUTION CONTROL STANDARDS.—In the

9 case of a water treatment discharge or waste disposal

10 system seeking funding, no Federal funds shall be

11 made available under this section unless the Secretary

12 determines that the effluent from the system conforms

13 with applicable Federal and State water pollution

14 control standards.

15 ‘‘(11) RURAL BUSINESS OPPORTUNITY

16 GRANTS.—

17 ‘‘(A) IN GENERAL.—The Secretary may

18 make grants, not to exceed $1,500,000 annually,

19 to public bodies, private nonprofit community

20 development corporations or entities, or such

21 other agencies as the Secretary may select to en22 able the recipients—

23 ‘‘(i) to identify and analyze business

24 opportunities, including opportunities in
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1 export markets, that will use local rural eco2 nomic and human resources;

3 ‘‘(ii) to identify, train, and provide

4 technical assistance to existing or prospec5 tive rural entrepreneurs and managers;

6 ‘‘(iii) to establish business support cen7 ters and otherwise assist in the creation of

8 new rural businesses, the development of

9 methods of financing local businesses, and

10 the enhancement of the capacity of local in11 dividuals and entities to engage in sound

12 economic activities;

13 ‘‘(iv) to conduct regional, community,

14 and local economic development planning

15 and coordination, and leadership develop16 ment; and

17 ‘‘(v) to establish centers for training,

18 technology, and trade that will provide

19 training to rural businesses in the utiliza20 tion of interactive communications tech21 nologies to develop international trade op22 portunities and markets.

23 ‘‘(B) CRITERIA.—In awarding the grants,

24 the Secretary shall consider, among other cri25 teria to be established by the Secretary—
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1 ‘‘(i) the extent to which the applicant

2 provides development services in the rural

3 service area of the applicant; and

4 ‘‘(ii) the capability of the applicant to

5 carry out the purposes of this section.

6 ‘‘(C) COORDINATION.—The Secretary shall

7 ensure, to the maximum extent practicable, that

8 assistance provided under this paragraph is co9 ordinated with and delivered in cooperation with

10 similar services or assistance provided to rural

11 residents by the Cooperative State Research,

12 Education, and Extension Service or other Fed13 eral agencies.

14 ‘‘(D) AUTHORIZATION OF APPROPRIA15 TIONS.—There are authorized to be appropriated

16 to carry out this paragraph $7,500,000 for each

17 of fiscal years 1996 through 2002.’’;

18 (4) by striking paragraphs (14) and (15); and

19 (5) in paragraph (16)—

20 (A) by striking ‘‘(16)(A) The’’ and inserting

21 the following:

22 ‘‘(16) RURAL WATER AND WASTEWATER TECH23 NICAL ASSISTANCE AND TRAINING PROGRAMS.—

24 ‘‘(A) IN GENERAL.—The’’;

25 (B) in subparagraph (A)—
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1 (i) by striking ‘‘(i) identify’’ and in2 serting the following:

3 ‘‘(i) identify’’;

4 (ii) by striking ‘‘(ii) prepare’’ and in5 serting the following:

6 ‘‘(ii) prepare’’; and

7 (iii) by striking ‘‘(iii) improve’’ and

8 inserting the following:

9 ‘‘(iii) improve’’;

10 (C) in subparagraph (B), by striking ‘‘(B)

11 In’’ and inserting the following:

12 ‘‘(B) SELECTION PRIORITY.—In’’; and

13 (D) in subparagraph (C)—

14 (i) by striking ‘‘(C) Not’’ and inserting

15 the following:

16 ‘‘(C) FUNDING.—Not’’; and

17 (ii) by striking ‘‘2 per centum of any

18 funds provided in Appropriations Acts’’

19 and inserting ‘‘3 percent of any funds ap20 propriated’’.

21 (b) CONFORMING AMENDMENTS.—

22 (1) Section 307(a)(6)(B) of the Consolidated

23 Farm and Rural Development Act (7 U.S.C.

24 1927(a)(6)(B)) (as amended by section 651(a)(2)) is

25 further amended—
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1 (A) by striking clause (ii); and

2 (B) by redesignating clauses (iii) and (iv)

3 as clauses (ii) and (iii), respectively.

4 (2) The second sentence of section 309A(a) of the

5 Consolidated Farm and Rural Development Act (7

6 U.S.C. 1929a(a)) is amended by striking ‘‘,

7 306(a)(14),’’.

8 SEC. 742. EMERGENCY COMMUNITY WATER ASSISTANCE

9 GRANT PROGRAM FOR SMALL COMMUNITIES.

10 Section 306A of the Consolidated Farm and Rural De11 velopment Act (7 U.S.C. 1926a) is amended—

12 (1) in subsection (e)—

13 (A) by striking paragraph (1) and inserting

14 the following:

15 ‘‘(1) MAXIMUM INCOME.—No grant provided

16 under this section may be used to assist any rural

17 area or community that has a median household in18 come in excess of the State nonmetropolitan median

19 household income according to the most recent decen20 nial census of the United States.’’; and

21 (B) in paragraph (2), by striking ‘‘5,000’’

22 and inserting ‘‘3,000’’; and

23 (2) by striking subsection (i) and inserting the

24 following:
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1 ‘‘(i) AUTHORIZATION OF APPROPRIATIONS.—There are

2 authorized to be appropriated to carry out this section

3 $35,000,000 for each of fiscal years 1996 through 2002.’’.

4 SEC. 743. EMERGENCY COMMUNITY WATER ASSISTANCE

5 GRANT PROGRAM FOR SMALLEST COMMU6 NITIES.

7 Section 306B of the Consolidated Farm and Rural De8 velopment Act (7 U.S.C. 1926b) is repealed.

9 SEC. 744. AGRICULTURAL CREDIT INSURANCE FUND.

10 Section 309(f) of the Consolidated Farm and Rural

11 Development Act (7 U.S.C. 1929(f)) is amended—

12 (1) by striking paragraph (1); and

13 (2) by redesignating paragraphs (2) through (6)

14 as paragraphs (1) through (5), respectively.

15 SEC. 745. RURAL DEVELOPMENT INSURANCE FUND.

16 Section 309A(g) of the Consolidated Farm and Rural

17 Development Act (7 U.S.C. 1929a(g)) is amended—

18 (1) by striking paragraph (1); and

19 (2) by redesignating paragraphs (2) through (8)

20 as paragraphs (1) through (7), respectively.

21 SEC. 746. INSURED WATERSHED AND RESOURCE CON22 SERVATION AND DEVELOPMENT LOANS.

23 Section 310A of the Consolidated Farm and Rural De24 velopment Act (7 U.S.C. 1931) is repealed.
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1 SEC. 747. RURAL INDUSTRIALIZATION ASSISTANCE.

2 (a) IN GENERAL.—Section 310B of the Consolidated

3 Farm and Rural Development Act (7 U.S.C. 1932) is

4 amended—

5 (1) in subsection (b), by striking ‘‘(b)(1)’’ and all

6 that follows through ‘‘(2) The’’ and inserting the fol7 lowing:

8 ‘‘(b) SOLID WASTE MANAGEMENT GRANTS.—The’’;

9 (2) in subsection (c)—

10 (A) by striking ‘‘(c)(1) The’’ and inserting

11 the following:

12 ‘‘(c) RURAL BUSINESS ENTERPRISE GRANTS.—

13 ‘‘(1) IN GENERAL.—The’’;

14 (B) in paragraph (1), by inserting ‘‘(in15 cluding nonprofit entities)’’ after ‘‘private busi16 ness enterprises’’; and

17 (C) in paragraph (2)—

18 (i) by striking ‘‘(2) The’’ and inserting

19 the following:

20 ‘‘(2) PASSENGER TRANSPORTATION SERVICES OR

21 FACILITIES.—The’’; and

22 (ii) by striking ‘‘make grants’’ and in23 serting ‘‘award grants on a competitive

24 basis’’; and

25 (3) by striking subsections (e), (g), (h), and (i);
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1 (4) by redesignating subsections (f) and (j) as

2 subsections (e) and (f), respectively;

3 (5) by striking subsection (e) (as so redesignated)

4 and inserting the following:

5 ‘‘(e) RURAL COOPERATIVE DEVELOPMENT GRANTS.—

6 ‘‘(1) DEFINITIONS.—In this subsection:

7 ‘‘(A) NONPROFIT INSTITUTION.—The term

8 ‘nonprofit institution’ means any organization

9 or institution, including an accredited institu10 tion of higher education, no part of the net earn11 ings of which inures, or may lawfully inure, to

12 the benefit of any private shareholder or individ13 ual.

14 ‘‘(B) UNITED STATES.—The term ‘United

15 States’ means the several States, the District of

16 Columbia, the Commonwealth of Puerto Rico, the

17 Virgin Islands, Guam, American Samoa, and

18 the other territories and possessions of the United

19 States.

20 ‘‘(2) GRANTS.—The Secretary shall make grants

21 under this subsection to nonprofit institutions for the

22 purpose of enabling the institutions to establish and

23 operate centers for rural cooperative development.

24 ‘‘(3) GOALS.—The goals of a center funded under

25 this subsection shall be to facilitate the creation of
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1 jobs in rural areas through the development of new

2 rural cooperatives, value added processing, and rural

3 businesses.

4 ‘‘(4) APPLICATION.—Any nonprofit institution

5 seeking a grant under paragraph (2) shall submit to

6 the Secretary an application containing a plan for

7 the establishment and operation by the institution of

8 a center or centers for cooperative development. The

9 Secretary may approve the application if the plan

10 contains the following:

11 ‘‘(A) A provision that substantiates that the

12 center will effectively serve rural areas in the

13 United States.

14 ‘‘(B) A provision that the primary objective

15 of the center will be to improve the economic con16 dition of rural areas through cooperative devel17 opment.

18 ‘‘(C) A description of the activities that the

19 center will carry out to accomplish the objective.

20 The activities may include the following:

21 ‘‘(i) Programs for applied research and

22 feasibility studies that may be useful to in23 dividuals, cooperatives, small businesses,

24 and other similar entities in rural areas

25 served by the center.
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1 ‘‘(ii) Programs for the collection, inter2 pretation, and dissemination of information

3 that may be useful to individuals, coopera4 tives, small businesses, and other similar

5 entities in rural areas served by the center.

6 ‘‘(iii) Programs providing training

7 and instruction for individuals, coopera8 tives, small businesses, and other similar

9 entities in rural areas served by the center.

10 ‘‘(iv) Programs providing loans and

11 grants to individuals, cooperatives, small

12 businesses, and other similar entities in

13 rural areas served by the center.

14 ‘‘(v) Programs providing technical as15 sistance, research services, and advisory

16 services to individuals, cooperatives, small

17 businesses, and other similar entities in

18 rural areas served by the center.

19 ‘‘(vi) Programs providing for the co20 ordination of services and sharing of infor21 mation among the center.

22 ‘‘(D) A description of the contributions that

23 the activities are likely to make to the improve24 ment of the economic conditions of the rural

25 areas for which the center will provide services.
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1 ‘‘(E) Provisions that the center, in carrying

2 out the activities, will seek, where appropriate,

3 the advice, participation, expertise, and assist4 ance of representatives of business, industry, edu5 cational institutions, the Federal Government,

6 and State and local governments.

7 ‘‘(F) Provisions that the center will take all

8 practicable steps to develop continuing sources of

9 financial support for the center, particularly

10 from sources in the private sector.

11 ‘‘(G) Provisions for—

12 ‘‘(i) monitoring and evaluating the ac13 tivities by the nonprofit institution operat14 ing the center; and

15 ‘‘(ii) accounting for money received by

16 the institution under this section.

17 ‘‘(5) AWARDING GRANTS.—Grants made under

18 paragraph (2) shall be made on a competitive basis.

19 In making grants under paragraph (2), the Secretary

20 shall give preference to grant applications providing

21 for the establishment of centers for rural cooperative

22 development that—

23 ‘‘(A) demonstrate a proven track record in

24 administering a nationally coordinated, region25 ally or State-wide operated project;
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1 ‘‘(B) demonstrate previous expertise in pro2 viding technical assistance in rural areas;

3 ‘‘(C) demonstrate the ability to assist in the

4 retention of existing businesses, facilitate the es5 tablishment of new cooperatives and new cooper6 ative approaches, and generate new employment

7 opportunities that will improve the economic

8 conditions of rural areas;

9 ‘‘(D) demonstrate the ability to create hori10 zontal linkages among businesses within and

11 among various sectors in rural America and ver12 tical linkages to domestic and international

13 markets;

14 ‘‘(E) commit to providing technical assist15 ance and other services to underserved and eco16 nomically distressed areas in rural America; and

17 ‘‘(F) commit to providing greater than a 25

18 percent matching contribution with private

19 funds and in-kind contributions.

20 ‘‘(6) TWO-YEAR GRANTS.—The Secretary shall

21 evaluate programs receiving assistance under this

22 subsection and, if the Secretary determines it to be in

23 the best interest of the Federal Government, the Sec24 retary may approve grants under this subsection for

25 up to 2 years.
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1 ‘‘(7) TECHNICAL ASSISTANCE TO PREVENT EX2 CESSIVE UNEMPLOYMENT OR UNDEREMPLOYMENT.—

3 In carrying out this subsection, the Secretary may

4 provide technical assistance to alleviate or prevent

5 conditions of excessive unemployment,

6 underemployment, outmigration, or low employment

7 growth in economically distressed rural areas that the

8 Secretary determines have a substantial need for the

9 assistance. The assistance may include planning and

10 feasibility studies, management and operational as11 sistance, and studies evaluating the need for develop12 ment potential of projects that increase employment

13 and improve economic growth in the areas.

14 ‘‘(8) GRANTS TO DEFRAY ADMINISTRATIVE

15 COSTS.—The Secretary may make grants to defray

16 not to exceed 75 percent of the costs incurred by orga17 nizations and public bodies to carry out projects for

18 which grants or loans are made under this subsection.

19 For purposes of determining the non-Federal share of

20 the costs, the Secretary shall consider contributions in

21 cash and in kind, fairly evaluated, including prem22 ises, equipment, and services.

23 ‘‘(9) AUTHORIZATION OF APPROPRIATIONS.—

24 There are authorized to be appropriated to carry out
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1 this subsection $50,000,000 for each of fiscal years

2 1996 through 2002.’’; and

3 (6) by adding at the end the following:

4 ‘‘(g) LOAN GUARANTEES FOR THE PURCHASE OF CO5 OPERATIVE STOCK.—

6 ‘‘(1) DEFINITION OF FARMER.—In this sub7 section, the term ‘farmer’ means any farmer that

8 meets the family farmer definition, as determined by

9 the Secretary.

10 ‘‘(2) LOAN GUARANTEES.—The Secretary may

11 guarantee loans under this section to individual

12 farmers for the purpose of purchasing capital stock of

13 a farmer cooperative established for the purpose of

14 processing an agricultural commodity.

15 ‘‘(3) ELIGIBILITY.—To be eligible for a loan

16 guarantee under this subsection, a farmer must

17 produce the agricultural commodity that will be proc18 essed by the cooperative.

19 ‘‘(4) COLLATERAL.—To be eligible for a loan

20 guarantee under this subsection for the establishment

21 of a cooperative, the borrower of the loan must pledge

22 collateral to secure at least 25 percent of the amount

23 of the loan.’’.

24 (b) CONFORMING AMENDMENTS.—
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1 (1) Clause (iii) of section 307(a)(6)(B) of the

2 Consolidated Farm and Rural Development Act (7

3 U.S.C. 1927(a)(6)(B)) (as redesignated by section

4 741(b)(1)(B)) is amended by striking ‘‘subsections (d)

5 and (e) of section 310B’’ and inserting ‘‘section

6 310B(d)’’.

7 (2) Section 232(c)(2) of the Department of Agri8 culture Reorganization Act of 1994 (7 U.S.C.

9 6942(c)(2)) is amended—

10 (A) by striking ‘‘310B(b)(2)’’ and inserting

11 ‘‘310B(b)’’; and

12 (B) by striking ‘‘1932(b)(2)’’ and inserting

13 ‘‘1932(b)’’.

14 (3) Section 233(b) of the Department of Agri15 culture Reorganization Act of 1994 (7 U.S.C.

16 6943(b)) is amended—

17 (A) by striking paragraph (2); and

18 (B) by redesignating paragraph (3) as

19 paragraph (2).

20 SEC. 748. ADMINISTRATION.

21 Section 331(b)(4) of the Consolidated Farm and Rural

22 Development Act (7 U.S.C. 1981(b)(4)) is amended—

23 (1) by inserting after ‘‘claims’’ the following:

24 ‘‘(including debts and claims arising from loan guar25 antees)’’;
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1 (2) by striking ‘‘Farmers Home Administration

2 or’’ and inserting ‘‘Consolidated Farm Service Agen3 cy, Rural Utilities Service, Rural Housing and Com4 munity Development Service, Rural Business and Co5 operative Development Service, or a successor agency,

6 or’’; and

7 (3) by inserting after ‘‘activities under the Hous8 ing Act of 1949.’’ the following: ‘‘In the case of a secu9 rity instrument entered into under the Rural Elec10 trification Act of 1936 (7 U.S.C. 901 et seq.), the Sec11 retary shall notify the Attorney General of the intent

12 of the Secretary to exercise the authority of the Sec13 retary under this paragraph.’’.

14 SEC. 749. AUTHORIZATION OF APPROPRIATIONS.

15 (a) IN GENERAL.—Section 338 of the Consolidated

16 Farm and Rural Development Act (7 U.S.C. 1988) is

17 amended—

18 (1) by striking subsections (b), (c), (d), and (e);

19 and

20 (2) by redesignating subsection (f) as subsection

21 (b).

22 (b) CONFORMING AMENDMENTS.—

23 (1) The first sentence of section 309(g)(1) of the

24 Consolidated Farm and Rural Development Act (7

25 U.S.C. 1929(g)(1)) is amended by inserting after
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1 ‘‘section 338(c)’’ the following: ‘‘(before the amend2 ment made by section 447(a)(1) of the Agricultural

3 Reform and Improvement Act of 1996)’’.

4 (2) Section 343(b) of the Consolidated Farm and

5 Rural Development Act (7 U.S.C. 1991(b)) is amend6 ed by striking ‘‘338(f),’’ and inserting ‘‘338(b),’’.

7 SEC. 750. TESTIMONY BEFORE CONGRESSIONAL COMMIT8 TEES.

9 Section 345 of the Consolidated Farm and Rural De10 velopment Act (7 U.S.C. 1993) is repealed.

11 SEC. 751. PROHIBITION ON USE OF LOANS FOR CERTAIN

12 PURPOSES.

13 Section 363 of the Consolidated Farm and Rural De14 velopment Act (7 U.S.C. 2006e) is amended by adding at

15 the end the following: ‘‘This section shall not apply to a

16 loan made or guaranteed under this title for a utility line.’’.

17 SEC. 752. RURAL DEVELOPMENT CERTIFIED LENDERS PRO18 GRAM.

19 The Consolidated Farm and Rural Development Act

20 is amended by inserting after section 363 (7 U.S.C. 2006e)

21 the following:

22 ‘‘SEC. 364. RURAL DEVELOPMENT CERTIFIED LENDERS

23 PROGRAM.

24 ‘‘(a) CERTIFIED LENDERS PROGRAM.—
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1 ‘‘(1) IN GENERAL.—The Secretary may establish

2 a program under which the Secretary may guarantee

3 a loan for any rural development program that is

4 made by a lender certified by the Secretary.

5 ‘‘(2) CERTIFICATION REQUIREMENTS.—The Sec6 retary may certify a lender if the lender meets such

7 criteria as the Secretary may prescribe in regula8 tions, including the ability of the lender to properly

9 make, service, and liquidate the guaranteed loans of

10 the lender.

11 ‘‘(3) CONDITION OF CERTIFICATION.—As a con12 dition of certification, the Secretary may require the

13 lender to undertake to service the guaranteed loan

14 using standards that are not less stringent than gen15 erally accepted banking standards concerning loan

16 servicing that are used by prudent commercial or co17 operative lenders.

18 ‘‘(4) GUARANTEE.—Notwithstanding any other

19 provision of law, the Secretary may guarantee not

20 more than 80 percent of a loan made by a certified

21 lender described in paragraph (1), if the borrower of

22 the loan meets the eligibility requirements and such

23 other criteria for the loan guarantee that are estab24 lished by the Secretary.
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1 ‘‘(5) CERTIFICATIONS.—With respect to loans to

2 be guaranteed, the Secretary may permit a certified

3 lender to make appropriate certifications (as provided

4 in regulations issued by the Secretary) —

5 ‘‘(A) relating to issues such as creditworthi6 ness, repayment ability, adequacy of collateral,

7 and feasibility of the operation; and

8 ‘‘(B) that the borrower is in compliance

9 with all requirements of law, including regula10 tions issued by the Secretary.

11 ‘‘(6) RELATIONSHIP TO OTHER REQUIRE12 MENTS.—This subsection shall not affect the respon13 sibility of the Secretary to determine eligibility, re14 view financial information, and otherwise assess an

15 application.

16 ‘‘(b) PREFERRED CERTIFIED LENDERS PROGRAM.—

17 ‘‘(1) IN GENERAL.—The Secretary may establish

18 a preferred certified lenders program for lenders who

19 establish their—

20 ‘‘(A) knowledge of, and experience under,

21 the program established under subsection (a);

22 ‘‘(B) knowledge of the regulations concern23 ing the particular guaranteed loan program; and

24 ‘‘(C) proficiency related to the certified

25 lender program requirements.
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1 ‘‘(2) ADDITIONAL LENDING INSTITUTIONS.—The

2 Secretary may certify any lending institution as a

3 preferred certified lender if the institution meets such

4 additional criteria as the Secretary may prescribe by

5 regulation.

6 ‘‘(3) REVOCATION OF DESIGNATION.—The des7 ignation of a lender as a preferred certified lender

8 shall be revoked if the Secretary determines that the

9 lender is not adhering to the rules and regulations

10 applicable to the program or if the loss experiences of

11 a preferred certified lender are greater than other pre12 ferred certified lenders, except that the suspension or

13 revocation shall not affect any outstanding guarantee.

14 ‘‘(4) CONDITION OF CERTIFICATION.—As a con15 dition of the preferred certification, the Secretary

16 shall require the lender to undertake to service the

17 loan guaranteed by the Secretary under this sub18 section using generally accepted banking standards

19 concerning loan servicing employed by prudent com20 mercial or cooperative lenders. The Secretary shall, at

21 least annually, monitor the performance of each pre22 ferred certified lender to ensure that the conditions of

23 the certification are being met.
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1 ‘‘(5) EFFECT OF PREFERRED LENDER CERTIFI2 CATION.—Notwithstanding any other provision of

3 law, the Secretary may—

4 ‘‘(A) guarantee not more than 80 percent of

5 any approved loan made by a preferred certified

6 lender as described in this subsection, if the bor7 rower meets the eligibility requirements and such

8 other criteria as may be applicable to loans

9 guaranteed by the Secretary; and

10 ‘‘(B) permit preferred certified lenders to

11 make all decisions, with respect to loans to be

12 guaranteed by the Secretary under this sub13 section relating to creditworthiness, the closing,

14 monitoring, collection, and liquidation of loans,

15 and to accept appropriate certifications, as pro16 vided in regulations issued by the Secretary, that

17 the borrower is in compliance with all require18 ments of law and regulations issued by the Sec19 retary.’’.

20 SEC. 753. SYSTEM FOR DELIVERY OF CERTAIN RURAL DE21 VELOPMENT PROGRAMS.

22 (a) IN GENERAL.—Section 365 of the Consolidated

23 Farm and Rural Development Act (7 U.S.C. 2008) is re24 pealed.

25 (b) CONFORMING AMENDMENTS.—
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1 (1) Section 2310 of the Food, Agriculture, Con2 servation, and Trade Act of 1990 (7 U.S.C. 2007) is

3 amended—

4 (A) in subsection (a), by striking ‘‘or the

5 program established in sections 365 and 366 of

6 the Consolidated Farm and Rural Development

7 Act (as added by chapter 3 of this subtitle)’’;

8 (B) in subsection (b)—

9 (i) by striking ‘‘STATES.—’’ and all

10 that follows through ‘‘PARTNERSHIPS.—

11 The’’ in paragraph (1) and inserting

12 ‘‘STATES.—The’’; and

13 (ii) by striking paragraph (2);

14 (C) in subsection (c)—

15 (i) by striking ‘‘PROJECTS.—’’ and all

16 that follows through ‘‘PARTNERSHIPS.—

17 Chapter’’ in paragraph (1) and inserting

18 ‘‘PROJECTS.—Chapter’’;

19 (ii) by striking ‘‘subsection (b)(1)’’ and

20 inserting ‘‘subsection (b)’’; and

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

22 (D) in subsection (d), by striking ‘‘and sec23 tions 365, 366, 367, and 368(b) of the Consoli24 dated Farm and Rural Development Act (as

25 added by chapter 3 of this subtitle)’’.
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1 (2) Section 2375 of the Food, Agriculture, Con2 servation, and Trade Act of 1990 (7 U.S.C. 6613) is

3 amended—

4 (A) in subsection (e), by striking ‘‘, as de5 fined in section 365(b)(2) of the Consolidated

6 Farm and Rural Development Act,’’; and

7 (B) by adding at the end the following:

8 ‘‘(g) DEFINITION OF DESIGNATED RURAL DEVELOP9 MENT PROGRAM.—In this section, the term ‘designated

10 rural development program’ means a program carried out

11 under section 304(b), 306(a), or 310B(e) of the Consolidated

12 Farm and Rural Development Act (7 U.S.C. 1924(b),

13 1926(a), and 1932(e)), or under section 1323 of the Food

14 Security Act of 1985 (Public Law 99–198; 7 U.S.C. 1932

15 note), for which funds are available at any time during the

16 fiscal year under the section.’’.

17 (3) Paragraph (2) of section 233(b) of the De18 partment of Agriculture Reorganization Act of 1994

19 (7 U.S.C. 6943(b)) (as redesignated by section

20 747(b)(3)(B)) is amended by striking ‘‘sections 365

21 through 369 of the Consolidated Farm and Rural De22 velopment Act (7 U.S.C. 2008-2008d)’’ and inserting

23 ‘‘section 369 of the Consolidated Farm and Rural De24 velopment Act (7 U.S.C. 2008d)’’.
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1 SEC. 754. STATE RURAL ECONOMIC DEVELOPMENT REVIEW

2 PANEL.

3 Section 366 of the Consolidated Farm and Rural De4 velopment Act (7 U.S.C. 2008a) is repealed.

5 SEC. 755. LIMITED TRANSFER AUTHORITY OF LOAN

6 AMOUNTS.

7 Section 367 of the Consolidated Farm and Rural De8 velopment Act (7 U.S.C. 2008b) is repealed.

9 SEC. 756. ALLOCATION AND TRANSFER OF LOAN GUARAN10 TEE AUTHORITY.

11 Section 368 of the Consolidated Farm and Rural De12 velopment Act (7 U.S.C. 2008c) is repealed.

13 SEC. 757. NATIONAL SHEEP INDUSTRY IMPROVEMENT CEN14 TER.

15 The Consolidated Farm and Rural Development Act

16 (as amended by section 641) is amended by adding at the

17 end the following:

18 ‘‘SEC. 375. NATIONAL SHEEP INDUSTRY IMPROVEMENT

19 CENTER.

20 ‘‘(a) DEFINITIONS.—In this section:

21 ‘‘(1) BOARD.—The term ‘Board’ means the

22 Board of Directors established under subsection (f).

23 ‘‘(2) CENTER.—The term ‘Center’ means the Na24 tional Sheep Industry Improvement Center estab25 lished under subsection (b).
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1 ‘‘(3) ELIGIBLE ENTITY.—The term ‘eligible en2 tity’ means an entity that promotes the betterment of

3 the United States lamb or wool industry and that

4 is—

5 ‘‘(A) a public, private, or cooperative orga6 nization;

7 ‘‘(B) an association, including a corpora8 tion not operated for profit;

9 ‘‘(C) a federally recognized Indian Tribe; or

10 ‘‘(D) a public or quasi-public agency.

11 ‘‘(4) FUND.—The term ‘Fund’ means the Natu12 ral Sheep Improvement Center Revolving Fund estab13 lished under subsection (e).

14 ‘‘(b) ESTABLISHMENT OF CENTER.—The Secretary

15 shall establish a National Sheep Industry Improvement

16 Center.

17 ‘‘(c) PURPOSES.—The purposes of the Center shall be

18 to—

19 ‘‘(1) promote strategic development activities and

20 collaborative efforts by private and State entities to

21 maximize the impact of Federal assistance to

22 strengthen and enhance the production and marketing

23 of lamb and wool in the United States;

24 ‘‘(2) optimize the use of available human capital

25 and resources within the sheep industry;
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1 ‘‘(3) provide assistance to meet the needs of the

2 sheep industry for infrastructure development, busi3 ness development, production, resource development,

4 and market and environmental research;

5 ‘‘(4) advance activities that empower and build

6 the capacity of the United States sheep industry to

7 design unique responses to the special needs of the

8 lamb and wool industries on both a regional and na9 tional basis; and

10 ‘‘(5) adopt flexible and innovative approaches to

11 solving the long-term needs of the United States sheep

12 industry.

13 ‘‘(d) STRATEGIC PLAN.—

14 ‘‘(1) IN GENERAL.—The Center shall submit to

15 the Secretary an annual strategic plan for the deliv16 ery of financial assistance provided by the Center.

17 ‘‘(2) REQUIREMENTS.—A strategic plan shall

18 identify—

19 ‘‘(A) goals, methods, and a benchmark for

20 measuring the success of carrying out the plan

21 and how the plan relates to the national and re22 gional goals of the Center;

23 ‘‘(B) the amount and sources of Federal and

24 non-Federal funds that are available for carry25 ing out the plan;
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1 ‘‘(C) funding priorities;

2 ‘‘(D) selection criteria for funding; and

3 ‘‘(E) a method of distributing funding.

4 ‘‘(e) REVOLVING FUND.—

5 ‘‘(1) ESTABLISHMENT.—There is established in

6 the Treasury the Natural Sheep Improvement Center

7 Revolving Fund. The Fund shall be available to the

8 Center, without fiscal year limitation, to carry out

9 the authorized programs and activities of the Center

10 under this section.

11 ‘‘(2) CONTENTS OF FUND.—There shall be depos12 ited in the Fund—

13 ‘‘(A) such amounts as may be appropriated,

14 transferred, or otherwise made available to sup15 port programs and activities of the Center;

16 ‘‘(B) payments received from any source for

17 products, services, or property furnished in con18 nection with the activities of the Center;

19 ‘‘(C) fees and royalties collected by the Cen20 ter from licensing or other arrangements relating

21 to commercialization of products developed

22 through projects funded, in whole or part, by

23 grants, contracts, or cooperative agreements exe24 cuted by the Center;
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1 ‘‘(D) proceeds from the sale of assets, loans,

2 and equity interests made in furtherance of the

3 purposes of the Center;;

4 ‘‘(E) donations or contributions accepted by

5 the Center to support authorized programs and

6 activities; and

7 ‘‘(F) any other funds acquired by the Cen8 ter.

9 ‘‘(3) USE OF FUND.—

10 ‘‘(A) IN GENERAL.—The Center may use

11 amounts in the Fund to make grants and loans

12 to eligible entities in accordance with a strategic

13 plan submitted under subsection (d).

14 ‘‘(B) CONTINUED EXISTENCE.—The Center

15 shall manage the Fund in a manner that ensures

16 that sufficient amounts are available in the

17 Fund to carry out subsection (c).

18 ‘‘(C) DIVERSE AREA.—The Center shall, to

19 the maximum extent practicable, use the Fund to

20 serve broad geographic areas and regions of di21 verse production.

22 ‘‘(D) VARIETY OF LOANS AND GRANTS.—The

23 Center shall, to the maximum extent practicable,

24 use the Fund to provide a variety of

25 intermediate- and long-term grants and loans.
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1 ‘‘(E) ADMINISTRATION.—The Center may

2 not use more than 3 percent of the amounts in

3 the Fund for a fiscal year for the administration

4 of the Center.

5 ‘‘(F) INFLUENCING LEGISLATION.—None of

6 the amounts in the Fund may be used to influ7 ence legislation.

8 ‘‘(G) ACCOUNTING.—To be eligible to receive

9 amounts from the Fund, an entity must agree to

10 account for the amounts using generally accepted

11 accounting principles.

12 ‘‘(H) USES OF FUND.—The Center may use

13 amounts in the Fund to—

14 ‘‘(i) participate with Federal and

15 State agencies in financing activities that

16 are in accordance with a strategic plan sub17 mitted under subsection (d), including par18 ticipation with several States in a regional

19 effort;

20 ‘‘(ii) participate with other public and

21 private funding sources in financing activi22 ties that are in accordance with the strate23 gic plan, including participation in a re24 gional effort;
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1 ‘‘(iii) provide security for, or make

2 principle or interest payments on, revenue

3 or general obligation bonds issued by a

4 State, if the proceeds from the sale of the

5 bonds are deposited in the Fund;

6 ‘‘(iv) accrue interest;

7 ‘‘(v) guarantee or purchase insurance

8 for local obligations to improve credit mar9 ket access or reduce interest rates for a

10 project that is in accordance with the stra11 tegic plan; or

12 ‘‘(vi) sell assets, loans, and equity in13 terests acquired in connection with the fi14 nancing of projects funded by the Center.

15 ‘‘(4) LOANS.—

16 ‘‘(A) RATE.—A loan from the Fund may be

17 made at an interest rate that is below the market

18 rate or may be interest free.

19 ‘‘(B) TERM.—The term of a loan may not

20 exceed the shorter of—

21 ‘‘(i) the useful life of the activity fi22 nanced; or

23 ‘‘(ii) 40 years.

24 ‘‘(C) SOURCE OF REPAYMENT.—The Center

25 may not make a loan from the Fund unless the
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1 recipient establishes an assured source of repay2 ment.

3 ‘‘(D) PROCEEDS.—All payments of prin4 cipal and interest on a loan made from the Fund

5 shall be deposited into the Fund.

6 ‘‘(5) MAINTENANCE OF EFFORT.—The Center

7 shall use the Fund only to supplement and not to

8 supplant Federal, State, and private funds expended

9 for rural development.

10 ‘‘(6) FUNDING.—

11 ‘‘(A) DEPOSIT OF FUNDS.—All Federal and

12 non-Federal amounts received by the Center to

13 carry out this section shall be deposited in the

14 Fund.

15 ‘‘(B) MANDATORY FUNDS.—Out of any

16 moneys in the Treasury not otherwise appro17 priated, the Secretary of the Treasury shall pro18 vide to the Center not to exceed $20,000,000 to

19 carry out this section.

20 ‘‘(C) ADDITIONAL FUNDS.—In addition to

21 any funds provided under subparagraph (B),

22 there is authorized to be appropriated to carry

23 out this section $30,000,000 to carry out this sec24 tion.
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1 ‘‘(D) PRIVATIZATION.—Federal funds shall

2 not be used to carry out this section beginning

3 on the earlier of—

4 ‘‘(i) the date that is 10 years after the

5 effective date of this section; or

6 ‘‘(ii) the day after a total of

7 $50,000,000 is made available under sub8 paragraphs (B) and (C) to carry out this

9 section.

10 ‘‘(f) BOARD OF DIRECTORS.—

11 ‘‘(1) IN GENERAL.—The management of the Cen12 ter shall be vested in a Board of Directors.

13 ‘‘(2) POWERS.—The Board shall—

14 ‘‘(A) be responsible for the general super15 vision of the Center;

16 ‘‘(B) review any grant, loan, contract, or

17 cooperative agreement to be made or entered into

18 by the Center and any financial assistance pro19 vided to the Center;

20 ‘‘(C) make the final decision, by majority

21 vote, on whether and how to provide assistance

22 to an applicant; and

23 ‘‘(D) develop and establish a budget plan

24 and a long-term operating plan to carry out the

25 goals of the Center.
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1 ‘‘(3) COMPOSITION.—The Board shall be com2 posed of—

3 ‘‘(A) 7 voting members, of whom—

4 ‘‘(i) 4 members shall be active produc5 ers of sheep in the United States;

6 ‘‘(ii) 2 members shall have expertise in

7 finance and management; and

8 ‘‘(iii) 1 member shall have expertise in

9 lamb and wool marketing; and

10 ‘‘(B) 2 nonvoting members, of whom—

11 ‘‘(i) 1 member shall be the Under Sec12 retary of Agriculture for Rural Economic

13 and Community Development; and

14 ‘‘(ii) 1 member shall be the Under Sec15 retary of Agriculture for Research, Edu16 cation, and Economics.

17 ‘‘(4) ELECTION.—A voting member of the Board

18 shall be chosen in an election of the members of a na19 tional organization selected by the Secretary that—

20 ‘‘(A) consists only of sheep producers in the

21 United States; and

22 ‘‘(B) has as the primary interest of the or23 ganization the production of lamb and wool in

24 the United States.

25 ‘‘(5) TERM OF OFFICE.—
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1 ‘‘(A) IN GENERAL.—Subject to subpara2 graph (B), the term of office of a voting member

3 of the Board shall be 3 years.

4 ‘‘(B) STAGGERED INITIAL TERMS.—The ini5 tial voting members of the Board (other than the

6 chairperson of the initially established Board)

7 shall serve for staggered terms of 1, 2, and 3

8 years, as determined by the Secretary.

9 ‘‘(C) REELECTION.—A voting member may

10 be reelected for not more than 1 additional term.

11 ‘‘(6) VACANCY.—

12 ‘‘(A) IN GENERAL.—A vacancy on the

13 Board shall be filled in the same manner as the

14 original Board.

15 ‘‘(B) REELECTION.—A member elected to

16 fill a vacancy for an unexpired term may be re17 elected for 1 full term.

18 ‘‘(7) CHAIRPERSON.—

19 ‘‘(A) IN GENERAL.—The Board shall select

20 a chairperson from among the voting members of

21 the Board.

22 ‘‘(B) TERM.—The term of office of the

23 chairperson shall be 2 years.

24 ‘‘(8) ANNUAL MEETING.—
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1 ‘‘(A) IN GENERAL.—The Board shall meet

2 not less than once each fiscal year at the call of

3 the chairperson or at the request of the executive

4 director appointed under subsection (g)(1).

5 ‘‘(B) LOCATION.—The location of a meeting

6 of the Board shall be established by the Board.

7 ‘‘(9) VOTING.—

8 ‘‘(A) QUORUM.—A quorum of the Board

9 shall consist of a majority of the voting members.

10 ‘‘(B) MAJORITY VOTE.—A decision of the

11 Board shall be made by a majority of the voting

12 members of the Board.

13 ‘‘(10) CONFLICTS OF INTEREST.—

14 ‘‘(A) IN GENERAL.—A member of the Board

15 shall not vote on any matter respecting any ap16 plication, contract, claim, or other particular

17 matter pending before the Board in which, to the

18 knowledge of the member, an interest is held

19 by—

20 ‘‘(i) the member;

21 ‘‘(ii) any spouse of the member;

22 ‘‘(iii) any child of the member;

23 ‘‘(iv) any partner of the member;
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1 ‘‘(v) any organization in which the

2 member is serving as an officer, director,

3 trustee, partner, or employee; or

4 ‘‘(vi) any person with whom the mem5 ber is negotiating or has any arrangement

6 concerning prospective employment or with

7 whom the member has a financial interest.

8 ‘‘(B) REMOVAL.—Any action by a member

9 of the Board that violates subparagraph (A)

10 shall be cause for removal from the Board.

11 ‘‘(C) VALIDITY OF ACTION.—An action by a

12 member of the Board that violates subparagraph

13 (A) shall not impair or otherwise affect the va14 lidity of any otherwise lawful action by the

15 Board.

16 ‘‘(D) DISCLOSURE.—

17 ‘‘(i) IN GENERAL.—If a member of the

18 Board makes a full disclosure of an interest

19 and, prior to any participation by the

20 member, the Board determines, by majority

21 vote, that the interest is too remote or too

22 inconsequential to affect the integrity of any

23 participation by the member, the member

24 may participate in the matter relating to

25 the interest.
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1 ‘‘(ii) VOTE.—A member that discloses

2 an interest under clause (i) shall not vote

3 on a determination of whether the member

4 may participate in the matter relating to

5 the interest.

6 ‘‘(E) REMANDS.—

7 ‘‘(i) IN GENERAL.—The Secretary may

8 vacate and remand to the Board for recon9 sideration any decision made pursuant to

10 subsection (e)(3)(H) if the Secretary deter11 mines that there has been a violation of this

12 paragraph or any conflict of interest provi13 sion of the bylaws of the Board with respect

14 to the decision.

15 ‘‘(ii) REASONS.—In the case of any

16 violation and remand of a funding decision

17 to the Board under clause (i), the Secretary

18 shall inform the Board of the reasons for the

19 remand.

20 ‘‘(11) COMPENSATION.—

21 ‘‘(A) IN GENERAL.—A member of the Board

22 shall not receive any compensation by reason of

23 service on the Board.

24 ‘‘(B) EXPENSES.—A member of the Board

25 shall be reimbursed for travel, subsistence, and
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1 other necessary expenses incurred by the member

2 in the performance of a duty of the member.

3 ‘‘(12) BYLAWS.—The Board shall adopt, and

4 may from time to time amend, any bylaw that is nec5 essary for the proper management and functioning of

6 the Center.

7 ‘‘(13) PUBLIC HEARINGS.—Not later than 1 year

8 after the effective date of this section, the Board shall

9 hold public hearings on policy objectives of the pro10 gram established under this section.

11 ‘‘(14) ORGANIZATIONAL SYSTEM.—The Board

12 shall provide a system of organization to fix respon13 sibility and promote efficiency in carrying out the

14 functions of the Board.

15 ‘‘(15) USE OF DEPARTMENT OF AGRICULTURE.—

16 The Board may, with the consent of the Secretary,

17 utilize the facilities of and the services of employees

18 of the Department of Agriculture, without cost to the

19 Center.

20 ‘‘(g) OFFICERS AND EMPLOYEES.—

21 ‘‘(1) EXECUTIVE DIRECTOR.—

22 ‘‘(A) IN GENERAL.—The Board shall ap23 point an executive director to be the chief execu24 tive officer of the Center.
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1 ‘‘(B) TENURE.—The executive director shall

2 serve at the pleasure of the Board.

3 ‘‘(C) COMPENSATION.—Compensation for

4 the executive director shall be established by the

5 Board.

6 ‘‘(2) OTHER OFFICERS AND EMPLOYEES.—The

7 Board may select and appoint officers, attorneys, em8 ployees, and agents who shall be vested with such

9 powers and duties as the Board may determine.

10 ‘‘(3) DELEGATION.—The Board may, by resolu11 tion, delegate to the chairperson, the executive direc12 tor, or any other officer or employee any function,

13 power, or duty of the Board other than voting on a

14 grant, loan, contract, agreement, budget, or annual

15 strategic plan.

16 ‘‘(h) CONSULTATION.—To carry out this section, the

17 Board may consult with—

18 ‘‘(1) State departments of agriculture;

19 ‘‘(2) Federal departments and agencies;

20 ‘‘(3) nonprofit development corporations;

21 ‘‘(4) colleges and universities;

22 ‘‘(5) banking and other credit-related agencies;

23 ‘‘(6) agriculture and agribusiness organizations;

24 and
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1 ‘‘(7) regional planning and development organi2 zations.

3 ‘‘(i) OVERSIGHT.—

4 ‘‘(1) IN GENERAL.—The Secretary shall review

5 and monitor compliance by the Board and the Center

6 with this section.

7 ‘‘(2) SANCTIONS.—If, following notice and op8 portunity for a hearing, the Secretary finds that the

9 Board or the Center is not in compliance with this

10 section, the Secretary may—

11 ‘‘(A) cease making deposits to the Fund;

12 ‘‘(B) suspend the authority of the Center to

13 withdraw funds from the Fund; or

14 ‘‘(C) impose other appropriate sanctions,

15 including recoupment of money improperly ex16 pended for purposes prohibited or not authorized

17 by this Act and disqualification from receipt of

18 financial assistance under this section.

19 ‘‘(3) REMOVING SANCTIONS.—The Secretary shall

20 remove sanctions imposed under paragraph (2) on a

21 finding that there is no longer any failure by the

22 Board or the Center to comply with this section or

23 that the noncompliance shall be promptly corrected.’’.
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1 CHAPTER 2—RURAL COMMUNITY

2 ADVANCEMENT PROGRAM

3 SEC. 761. RURAL COMMUNITY ADVANCEMENT PROGRAM.

4 The Consolidated Farm and Rural Development Act

5 (7 U.S.C. 1921 et seq.) is amended by adding at the end

6 the following:

7 ‘‘Subtitle E—Rural Community

8 Advancement Program

9 ‘‘SEC. 381A. DEFINITIONS.

10 ‘‘In this subtitle:

11 ‘‘(1) RURAL AND RURAL AREA.—The terms

12 ‘rural’ and ‘rural area’ mean, subject to section

13 306(a)(7), a city, town, or unincorporated area that

14 has a population of 50,000 inhabitants or less, other

15 than an urbanized area immediately adjacent to a

16 city, town, or unincorporated area that has a popu17 lation in excess of 50,000 inhabitants.

18 ‘‘(2) STATE.—The term ‘State’ means each of the

19 50 States, the District of Columbia, the Common20 wealth of Puerto Rico, Guam, the Virgin Islands of

21 the United States, American Samoa, the Common22 wealth of the Northern Mariana Islands, the Trust

23 Territory of the Pacific Islands, and the Federated

24 States of Micronesia.
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1 ‘‘SEC. 381B. ESTABLISHMENT.

2 ‘‘The Secretary shall establish a rural community ad3 vancement program to provide grants, loans, loan guaran4 tees, and other assistance to meet the rural development

5 needs of local communities in States and federally recog6 nized Indian tribes.

7 ‘‘SEC. 381C. NATIONAL OBJECTIVES.

8 ‘‘The national objectives of the program established

9 under this subtitle shall be to—

10 ‘‘(1) promote strategic development activities and

11 collaborative efforts by State and local communities,

12 and federally recognized Indian tribes, to maximize

13 the impact of Federal assistance;

14 ‘‘(2) optimize the use of resources;

15 ‘‘(3) provide assistance in a manner that reflects

16 the complexity of rural needs, including the needs for

17 business development, health care, education, infra18 structure, cultural resources, the environment, and

19 housing;

20 ‘‘(4) advance activities that empower, and build

21 the capacity of, State and local communities to design

22 unique responses to the special needs of the State and

23 local communities, and federally recognized Indian

24 tribes, for rural development assistance; and

25 ‘‘(5) adopt flexible and innovative approaches to

26 solving rural development problems.
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1 ‘‘SEC. 381D. STRATEGIC PLANS.

2 ‘‘(a) IN GENERAL.—The Secretary shall direct each of

3 the Directors of Rural Economic and Community Develop4 ment State Offices to prepare a strategic plan for each State

5 for the delivery of assistance under this subtitle within the

6 State.

7 ‘‘(b) ASSISTANCE.—

8 ‘‘(1) IN GENERAL.—Financial assistance for

9 rural development allocated for a State under this

10 subtitle shall be used only for orderly community de11 velopment that is consistent with the strategic plan of

12 the State.

13 ‘‘(2) RURAL AREA.—Assistance under this sub14 title may only be provided in a rural area.

15 ‘‘(3) SMALL COMMUNITIES.—In carrying out this

16 subtitle within a State, the Secretary shall give prior17 ity to communities with the smallest populations and

18 lowest per capita income.

19 ‘‘(c) REVIEW.—The Secretary shall review the strategic

20 plan of a State at least once every 5 years.

21 ‘‘(d) CONTENTS.—A strategic plan of a State under

22 this section shall be a plan that—

23 ‘‘(1) coordinates economic, human, and commu24 nity development plans and related activities pro25 posed for an affected area;
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1 ‘‘(2) provides that the State and an affected com2 munity (including local institutions and organiza3 tions that have contributed to the planning process)

4 shall act as full partners in the process of developing

5 and implementing the plan;

6 ‘‘(3) identifies goals, methods, and benchmarks

7 for measuring the success of carrying out the plan

8 and how the plan relates to local or regional

9 ecosystems;

10 ‘‘(4) provides for the involvement, in the prepa11 ration of the plan, of State, local, private, and public

12 persons, State rural development councils, federally13 recognized Indian tribes, and community-based orga14 nizations;

15 ‘‘(5) identifies the amount and source of Federal

16 and non-Federal resources that are available for car17 rying out the plan; and

18 ‘‘(6) includes such other information as may be

19 required by the Secretary.

20 ‘‘SEC. 381E. ACCOUNTS.

21 ‘‘(a) IN GENERAL.—Notwithstanding any other provi22 sion of law, for each fiscal year, the Secretary shall consoli23 date into 3 accounts, corresponding to the 3 function cat24 egories established under subsection (c), the amounts made

25 available for programs included in each function category.
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1 ‘‘(b) ALLOCATION WITHIN ACCOUNT.—The Secretary

2 shall allocate the amounts in each account for such program

3 purposes authorized for the corresponding function category

4 among the States, as the Secretary may determine in ac5 cordance with this subtitle.

6 ‘‘(c) FUNCTION CATEGORIES.—For purposes of sub7 section (a):

8 ‘‘(1) RURAL HOUSING AND COMMUNITY DEVELOP9 MENT.—The rural housing and community develop10 ment category shall include funds made available

11 for—

12 ‘‘(A) community facility direct and guaran13 teed loans provided under section 306(a)(1);

14 ‘‘(B) community facility grants provided

15 under section 306(a)(21); and

16 ‘‘(C) rental housing loans for new housing

17 provided under section 515 of the Housing Act of

18 1949 (42 U.S.C. 1485).

19 ‘‘(2) RURAL UTILITIES.—The rural utilities cat20 egory shall include funds made available for—

21 ‘‘(A) water and waste disposal grants and

22 direct and guaranteed loans provided under

23 paragraphs (1) and (2) of section 306(a);
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1 ‘‘(B) rural water and wastewater technical

2 assistance and training grants provided under

3 section 306(a)(16);

4 ‘‘(C) emergency community water assistance

5 grants provided under section 306A; and

6 ‘‘(D) solid waste management grants pro7 vided under section 310B(b).

8 ‘‘(3) RURAL BUSINESS AND COOPERATIVE DE9 VELOPMENT.—The rural business and cooperative de10 velopment category shall include funds made avail11 able for—

12 ‘‘(A) rural business opportunity grants pro13 vided under section 306(a)(11)(A);

14 ‘‘(B) business and industry guaranteed

15 loans provided under section 310B(a)(1); and

16 ‘‘(C) rural business enterprise grants and

17 rural educational network grants provided under

18 section 310B(c).

19 ‘‘(d) OTHER PROGRAMS.—Subject to subsection (e), in

20 addition to any other appropriated amounts, the Secretary

21 may transfer amounts allocated for a State for any of the

22 3 function categories for a fiscal year under subsection (c)

23 to—
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1 ‘‘(1) mutual and self-help housing grants pro2 vided under section 523 of the Housing Act of 1949

3 (42 U.S.C. 1490c);

4 ‘‘(2) rural rental housing loans for existing hous5 ing provided under section 515 of the Housing Act of

6 1949 (42 U.S.C. 1485);

7 ‘‘(3) rural cooperative development grants pro8 vided under section 310B(e); and

9 ‘‘(4) grants to broadcasting systems provided

10 under section 310B(f).

11 ‘‘(e) TRANSFER.—

12 ‘‘(1) IN GENERAL.—Subject to paragraph (2), the

13 Secretary may transfer within each State up to 25

14 percent of the total amount allocated for a State

15 under each function category referred to in subsection

16 (c) for each fiscal year under this section to any other

17 function category, or to a program referred to in sub18 section (d), but excluding State grants under section

19 381G.

20 ‘‘(2) LIMITATION.—Not more than 10 percent of

21 the total amount (excluding grants to States under

22 section 381G) made available for any fiscal year for

23 the programs covered by each of the 3 function cat24 egories referred to in subsection (c), and the programs
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1 referred to in subsection (d), shall be available for the

2 transfer.

3 ‘‘(f) AVAILABILITY OF FUNDS.—The Secretary may

4 make available funds appropriated for the programs re5 ferred to in subsection (c) to defray the cost of any subsidy

6 associated with a guarantee provided under section 381H,

7 except that not more than 5 percent of the funds provided

8 under subsection (c) may be made available within a State.

9 ‘‘SEC. 381F. ALLOCATION.

10 ‘‘(a) NATIONAL RESERVE.—The Secretary may use not

11 more than 10 percent of the total amount of funds made

12 available for a fiscal year under section 381E to establish

13 a national reserve for rural development that may be used

14 by the Secretary in rural areas during the fiscal year to—

15 ‘‘(1) meet situations of exceptional need;

16 ‘‘(2) provide incentives to promote or reward su17 perior performance; or

18 ‘‘(3) carry out performance-oriented demonstra19 tion projects.

20 ‘‘(b) INDIAN TRIBES.—

21 ‘‘(1) RESERVATION.—The Secretary shall reserve

22 not less than 3 percent of the total amounts made

23 available for a fiscal year under section 381E to

24 carry out rural development programs specified in
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1 subsections (c) and (d) of section 381D for federally

2 recognized Indian tribes.

3 ‘‘(2) ALLOCATION.—The Secretary shall establish

4 a formula for allocating the reserve and shall admin5 ister the reserve through the appropriate Director of

6 the Rural Economic and Cooperative Development

7 State office.

8 ‘‘(c) STATE ALLOCATION.—

9 ‘‘(1) IN GENERAL.—The Secretary shall allocate

10 among all the States the amounts made available

11 under section 381E in a fair, reasonable, and appro12 priate manner that takes into consideration rural

13 population, levels of income, unemployment, and

14 other relevant factors, as determined by the Secretary.

15 ‘‘(2) MINIMUM ALLOCATION.—In making the al16 locations for each of fiscal years 1996 through 2002,

17 the Secretary shall ensure that the percentage alloca18 tion for each State is equal to the percentage of the

19 average of the total funds made available to carry out

20 the programs referred to in section 381E(c) that were

21 obligated in the State for each of fiscal years 1993

22 and 1994.

23 ‘‘SEC. 381G. GRANTS TO STATES.

24 ‘‘(a) IN GENERAL.—Subject to subsection (c), the Sec25 retary shall grant to any eligible State from which a request
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1 is received for a fiscal year 5 percent of the amount allo2 cated for the State for the fiscal year under section 381F(c).

3 ‘‘(b) ELIGIBILITY.—To be eligible to receive a grant

4 under this section, the Secretary shall require that the State

5 maintain the grant funds received and any non-Federal

6 matching funds to carry out this subtitle in a separate ac7 count, to remain available until expended.

8 ‘‘(c) MATCHING FUNDS.—For any fiscal year, if non9 Federal matching funds are provided for a State in an

10 amount that is equal to 200 percent or more of an amount

11 equal to 5 percent of the amount allocated for the State for

12 the fiscal year under section 381F(c), the Secretary shall

13 pay to the State the grant provided under this subsection

14 in an amount equal to 5 percent of the amount allocated

15 for the State for the fiscal year under section 381F(c).

16 ‘‘(d) USE OF FUNDS.—The Secretary shall require that

17 funds provided to a State under this section be used in rural

18 areas to achieve the purposes of the programs referred to

19 in section 381E(c) in accordance with the strategic plan

20 referred to in section 381D.

21 ‘‘(e) MAINTENANCE OF EFFORT.—The State shall pro22 vide assurances that funds received under this section will

23 be used only to supplement, not to supplant, the amount

24 of Federal, State, and local funds otherwise expended for

25 rural development assistance in the State.
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1 ‘‘(f) APPEALS.—The Secretary shall provide to a State

2 an opportunity for an appeal of any action taken under

3 this section.

4 ‘‘(g) ADMINISTRATIVE COSTS.—Federal funds shall not

5 be used for any administrative costs incurred by a State

6 in carrying out this subtitle.

7 ‘‘(h) SPENDING OF FUNDS BY STATE.—

8 ‘‘(1) IN GENERAL.—Payments to a State from a

9 grant under this section for a fiscal year shall be obli10 gated by the State in the fiscal year or in the succeed11 ing fiscal year. A State shall obligate funds under

12 this section to provide assistance to rural areas pur13 suant, to the maximum extent practicable, to applica14 tions received from the rural areas.

15 ‘‘(2) FAILURE TO OBLIGATE.—If a State fails to

16 obligate payments in accordance with paragraph (1),

17 the Secretary shall make a corresponding reduction in

18 the amount of payments provided to the State under

19 this section for the subsequent fiscal year.

20 ‘‘(3) NONCOMPLIANCE.—

21 ‘‘(A) REVIEW.—The Secretary shall review

22 and monitor State compliance with this section.

23 ‘‘(B) PENALTY.—If the Secretary finds that

24 there has been misuse of grant funds provided

25 under this section, or noncompliance with any of
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1 the terms and conditions of a grant, after rea2 sonable notice and opportunity for a hearing—

3 ‘‘(i) the Secretary shall notify the State

4 of the finding; and

5 ‘‘(ii) no further payments to the State

6 shall be made with respect to the programs

7 funded under this section until the Sec8 retary is satisfied that there is no longer

9 any failure to comply or that the non10 compliance will be promptly corrected.

11 ‘‘(C) OTHER SANCTIONS.—In the case of a

12 finding of noncompliance made pursuant to sub13 paragraph (B), the Secretary may, in addition

14 to, or in lieu of, imposing the sanctions described

15 in subparagraph (B), impose other appropriate

16 sanctions, including recoupment of money im17 properly expended for purposes prohibited or not

18 authorized by this section and disqualification

19 from the receipt of financial assistance under

20 this section.

21 ‘‘(i) NO ENTITLEMENT TO CONTRACT, GRANT, OR AS22 SISTANCE.—Nothing in this subtitle—

23 ‘‘(1) entitles any person to assistance or a con24 tract or grant; or
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1 ‘‘(2) limits the right of a State to impose addi2 tional limitations or conditions on assistance or a

3 contract or grant under this section.

4 ‘‘SEC. 381H. GUARANTEE AND COMMITMENT TO GUARAN5 TEE LOANS.

6 ‘‘(a) DEFINITION OF ELIGIBLE PUBLIC ENTITY.—In

7 this section, the term ‘eligible public entity’ means any unit

8 of general local government.

9 ‘‘(b) GUARANTEE AND COMMITMENT.—The Secretary

10 is authorized, on such terms and conditions as the Secretary

11 may prescribe, to guarantee and make commitments to

12 guarantee the notes or other obligations issued by eligible

13 public entities, or by public agencies designated by the eligi14 ble public entities, for the purposes of financing rural devel15 opment assistance activities authorized and funded under

16 section 381G.

17 ‘‘(c) PREREQUISITES.—No guarantee or commitment

18 to guarantee shall be made with respect to any note or other

19 obligation if the issuer’s total outstanding notes or obliga20 tions guaranteed under this section (excluding any amount

21 repaid under the contract entered into under subsection

22 (e)(1)(A)) would exceed an amount equal to 5 times the

23 amount of the grant approval for the issuer pursuant to

24 section 381G.
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1 ‘‘(d) PAYMENT OF PRINCIPAL, INTEREST, AND

2 COSTS.—Notwithstanding any other provision of this sub3 title, grants allocated to an issuer pursuant to this subtitle

4 (including program income derived from the grants) shall

5 be authorized for use in the payment of principal and inter6 est due (including such servicing, underwriting, or other

7 costs as may be specified in regulations of the Secretary)

8 on the notes or other obligations guaranteed pursuant to

9 this section.

10 ‘‘(e) REPAYMENT CONTRACT; SECURITY.—

11 ‘‘(1) IN GENERAL.—To ensure the repayment of

12 notes or other obligations and charges incurred under

13 this section and as a condition for receiving the guar14 antees, the Secretary shall require the issuer to—

15 ‘‘(A) enter into a contract, in a form ac16 ceptable to the Secretary, for repayment of notes

17 or other obligations guaranteed under this sec18 tion;

19 ‘‘(B) pledge any grant for which the issuer

20 may become eligible under this subtitle; and

21 ‘‘(C) furnish, at the discretion of the Sec22 retary, such other security as may be considered

23 appropriate by the Secretary in making the

24 guarantees.
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1 ‘‘(2) SECURITY.—To assist in ensuring the re2 payment of notes or other obligations and charges in3 curred under this section, a State shall pledge any

4 grant for which the State may become eligible under

5 this subtitle as security for notes or other obligations

6 and charges issued under this section by any unit of

7 general local government in the State.

8 ‘‘(f) PLEDGED GRANTS FOR REPAYMENTS.—Notwith9 standing any other provision of this subtitle, the Secretary

10 is authorized to apply grants pledged pursuant to para11 graphs (1)(B) and (2) of subsection (e) to any repayments

12 due the United States as a result of the guarantees.

13 ‘‘(g) OUTSTANDING OBLIGATIONS.—The total amount

14 of outstanding obligations guaranteed on a cumulative basis

15 by the Secretary pursuant to subsection (b) shall not at any

16 time exceed such amount as may be authorized to be appro17 priated for any fiscal year.

18 ‘‘(h) PURCHASE OF GUARANTEED OBLIGATIONS BY

19 FEDERAL FINANCING BANK.—Notes or other obligations

20 guaranteed under this section may not be purchased by the

21 Federal Financing Bank.

22 ‘‘(i) FULL FAITH AND CREDIT.—The full faith and

23 credit of the United States is pledged to the payment of

24 all guarantees made under this section. Any such guarantee

25 made by the Secretary shall be conclusive evidence of the
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1 eligibility of the obligations for the guarantee with respect

2 to principal and interest. The validity of the guarantee

3 shall be incontestable in the hands of a holder of the guaran4 teed obligations.

5 ‘‘SEC. 381I. LOCAL INVOLVEMENT.

6 ‘‘The Secretary shall require that an applicant for as7 sistance under this subtitle demonstrate evidence of signifi8 cant community support.

9 ‘‘SEC. 381J. STATE-TO-STATE COLLABORATION.

10 ‘‘The Secretary shall permit the establishment of vol11 untary pooling arrangements among States, and regional

12 fund-sharing agreements, to carry out this subtitle.

13 ‘‘SEC. 381K. RURAL VENTURE CAPITAL DEMONSTRATION

14 PROGRAM.

15 ‘‘(a) IN GENERAL.—The Secretary shall designate up

16 to 10 community development venture capital organizations

17 to demonstrate the utility of guarantees to attract increased

18 private investment in rural private business enterprises.

19 ‘‘(b) RURAL BUSINESS INVESTMENT POOL.—

20 ‘‘(1) ESTABLISHMENT.—To be eligible to partici21 pate in the demonstration program, an organization

22 referred to in subsection (a) shall establish a rural

23 business private investment pool (referred to in this

24 subsection as a ‘pool’) for the purpose of making eq25 uity investments in rural private business enterprises.
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1 ‘‘(2) GUARANTEE.—From funds allocated for the

2 national reserve under section 381F(a), the Secretary

3 shall guarantee the funds in a pool against loss, ex4 cept that the guarantee shall not exceed an amount

5 equal to 30 percent of the total funds in the pool.

6 ‘‘(3) AMOUNT.—The Secretary shall issue guar7 antees covering not more than $15,000,000 of obliga8 tions for each of fiscal years 1996 through 2002.

9 ‘‘(4) TERM.—The term of a guarantee provided

10 under this subsection shall not exceed 10 years.

11 ‘‘(5) SUBMISSION OF PLAN.—To be eligible to

12 participate in the demonstration program, an organi13 zation referred to in subsection (a) shall submit a

14 plan that describes—

15 ‘‘(A) potential sources and uses of the pool

16 to be established by the organization;

17 ‘‘(B) the utility of the guarantee authority

18 in attracting capital for the pool; and

19 ‘‘(C) on selection, mechanisms for notifying

20 State, local, and private nonprofit business de21 velopment organizations and businesses of the ex22 istence of the pool.

23 ‘‘(6) COMPETITION.—
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1 ‘‘(A) IN GENERAL.—The Secretary shall

2 conduct a competition for the designation and

3 establishment of pools.

4 ‘‘(B) PRIORITY.—In conducting the com5 petition, the Secretary shall give priority to or6 ganizations that—

7 ‘‘(i) have a demonstrated record of per8 formance or have a board and executive di9 rector with experience in venture capital,

10 small business equity investments, or com11 munity development finance;

12 ‘‘(ii) propose to serve low-income com13 munities;

14 ‘‘(iii) propose to maintain an average

15 investment of not more than $500,000 from

16 the pool of the organization;

17 ‘‘(iv) invest funds statewide or in a

18 multicounty region; and

19 ‘‘(v) propose to target job opportunities

20 resulting from the investments primarily to

21 economically disadvantaged individuals.

22 ‘‘(C) GEOGRAPHIC DIVERSITY.—To the ex23 tent practicable, the Secretary shall select organi24 zations in diverse geographic areas.
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1 ‘‘SEC. 381L. ANNUAL REPORT.

2 ‘‘(a) IN GENERAL.—The Secretary, in collaboration

3 with public, State, local, and private entities, State rural

4 development councils, and community-based organizations,

5 shall prepare an annual report that contains evaluations,

6 assessments, and performance outcomes concerning the

7 rural community advancement programs carried out under

8 this subtitle.

9 ‘‘(b) SUBMISSION.—Not later than March 1 of each

10 year, the Secretary shall—

11 ‘‘(1) submit the report required under subsection

12 (a) to Congress and the chief executives of States par13 ticipating in the program established under this sub14 title; and

15 ‘‘(2) make the report available to State and local

16 participants.

17 ‘‘SEC. 381M. RURAL DEVELOPMENT INTERAGENCY WORK18 ING GROUP.

19 ‘‘(a) IN GENERAL.—The Secretary shall provide lead20 ership within the Executive branch for, and assume respon21 sibility for, establishing an interagency working group

22 chaired by the Secretary.

23 ‘‘(b) DUTIES.—The working group shall establish pol24 icy, provide coordination, make recommendations, and

25 evaluate the performance of or for all Federal rural develop26 ment efforts.
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1 ‘‘SEC. 381N. DUTIES OF RURAL ECONOMIC AND COMMUNITY

2 DEVELOPMENT STATE OFFICES.

3 ‘‘In carrying out this subtitle, the Director of a Rural

4 Economic and Community Development State Office

5 shall—

6 ‘‘(1) to the maximum extent practicable, ensure

7 that the State strategic plan is implemented;

8 ‘‘(2) coordinate community development objec9 tives within the State;

10 ‘‘(3) establish links between local, State, and

11 field office program administrators of the Department

12 of Agriculture;

13 ‘‘(4) ensure that recipient communities comply

14 with applicable Federal and State laws and require15 ments; and

16 ‘‘(5) integrate State development programs with

17 assistance under this subtitle.

18 ‘‘SEC. 381O. ELECTRONIC TRANSFER.

19 ‘‘The Secretary shall transfer funds in accordance with

20 this subtitle through electronic transfer as soon as prac21 ticable after the effective date of this subtitle.’’.

22 SEC. 762. COMMUNITY FACILITIES GRANT PROGRAM.

23 Section 306(a) of the Consolidated Farm and Rural

24 Development Act (7 U.S.C. 1926(a)) is amended by adding

25 at the end the following:
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1 ‘‘(21) COMMUNITY FACILITIES GRANT PRO2 GRAM.—

3 ‘‘(A) IN GENERAL.—The Secretary may

4 make grants, in a total amount not to exceed

5 $10,000,000 for any fiscal year, to associations,

6 units of general local government, nonprofit cor7 porations, and federally recognized Indian tribes

8 to provide the Federal share of the cost of devel9 oping specific essential community facilities in

10 rural areas.

11 ‘‘(B) FEDERAL SHARE.—

12 ‘‘(i) IN GENERAL.—Except as provided

13 in clauses (ii) and (iii), the Secretary shall,

14 by regulation, establish the amount of the

15 Federal share of the cost of the facility

16 under this paragraph.

17 ‘‘(ii) MAXIMUM AMOUNT.—The amount

18 of a grant provided under this paragraph

19 shall not exceed 75 percent of the cost of de20 veloping a facility.

21 ‘‘(iii) GRADUATED SCALE.—The Sec22 retary shall provide for a graduated scale

23 for the amount of the Federal share pro24 vided under this paragraph, with higher

25 Federal shares for facilities in communities
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1 that have lower community population and

2 income levels, as determined by the Sec3 retary.’’.

4 Subtitle C—Amendments to the

5 Rural Electrification Act of 1936

6 SEC. 771. PURPOSES; INVESTIGATIONS AND REPORTS.

7 Section 2 of the Rural Electrification Act of 1936 (7

8 U.S.C. 902) is amended—

9 (1) by striking ‘‘SEC. 2. (a) The Secretary of Ag10 riculture is’’ and inserting the following:

11 ‘‘SEC. 2. GENERAL AUTHORITY OF THE SECRETARY OF AG12 RICULTURE.

13 ‘‘(a) LOANS.—The Secretary of Agriculture (referred

14 to in this Act as the ‘Secretary’) is’’;

15 (2) in subsection (a)—

16 (A) by striking ‘‘and the furnishing’’ the

17 first place it appears and all that follows

18 through ‘‘central station service’’; and

19 (B) by striking ‘‘systems; to make’’ and all

20 that follows through the period at the end of the

21 subsection and inserting ‘‘systems’’; and

22 (3) by striking subsection (b) and inserting the

23 following:

24 ‘‘(b) INVESTIGATIONS AND REPORTS.—The Secretary

25 may make, or cause to be made, studies, investigations, and
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1 reports regarding matters, including financial, techno2 logical, and regulatory matters, affecting the condition and

3 progress of electric, telecommunications, and economic de4 velopment in rural areas and publish and disseminate in5 formation with respect to the matters.’’.

6 SEC. 772. AUTHORIZATION OF APPROPRIATIONS.

7 (a) IN GENERAL.—Section 3 of the Rural Electrifica8 tion Act of 1936 (7 U.S.C. 903) is amended to read as fol9 lows:

10 ‘‘SEC. 3. AUTHORIZATION OF APPROPRIATIONS.

11 ‘‘There are authorized to be appropriated such sums

12 as are necessary to carry out this Act.’’.

13 (b) CONFORMING AMENDMENTS.—

14 (1) Section 301(a) of the Rural Electrification

15 Act of 1936 (7 U.S.C. 931(a)) is amended—

16 (A) by striking ‘‘(a)’’; and

17 (B) in paragraph (3), by striking ‘‘notwith18 standing section 3(a) of title I,’’.

19 (2) Section 302(b)(2) of the Rural Electrification

20 Act of 1936 (7 U.S.C. 932(b)(2)) is amended by strik21 ing ‘‘pursuant to section 3(a) of this Act’’.

22 (3) The last sentence of section 406(a) of the

23 Rural Electrification Act of 1936 (7 U.S.C. 946(a))

24 is amended by striking ‘‘pursuant to section 3(a) of

25 this Act’’.
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1 SEC. 773. LOANS FOR ELECTRICAL PLANTS AND TRANS2 MISSION LINES.

3 Section 4 of the Rural Electrification Act of 1936 (7

4 U.S.C. 904) is amended—

5 (1) in the first sentence—

6 (A) by striking ‘‘for the furnishing of’’ and

7 all that follows through ‘‘central station service

8 and’’; and

9 (B) by striking ‘‘the provisions of sections

10 3(d) and 3(e) but without regard to the 25 per

11 centum limitation therein contained,’’ and in12 serting ‘‘section 3,’’;

13 (2) in the second sentence, by striking ‘‘: Pro14 vided further, That all’’ and all that follows through

15 ‘‘loan: And provided further, That’’ and inserting ‘‘,

16 except that’’; and

17 (3) in the third sentence, by striking ‘‘and sec18 tion 5’’.

19 SEC. 774. LOANS FOR ELECTRICAL AND PLUMBING EQUIP20 MENT.

21 (a) IN GENERAL.—Section 5 of the Rural Electrifica22 tion Act of 1936 (7 U.S.C. 905) is repealed.

23 (b) CONFORMING AMENDMENTS.—Section 12(a) of the

24 Rural Electrification Act of 1936 (7 U.S.C. 912(a)) is

25 amended—
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1 (1) by striking ‘‘: Provided, however, That’’ and

2 inserting ‘‘, except that,’’; and

3 (2) by striking ‘‘, and with respect to any loan

4 made under section 5,’’ and all that follows through

5 ‘‘section 3’’.

6 SEC. 775. TESTIMONY ON BUDGET REQUESTS.

7 Section 6 of the Rural Electrification Act of 1936 (7

8 U.S.C. 906) is amended by striking the second sentence.

9 SEC. 776. TRANSFER OF FUNCTIONS OF ADMINISTRATION

10 CREATED BY EXECUTIVE ORDER.

11 Section 8 of the Rural Electrification Act of 1936 (7

12 U.S.C. 908) is repealed.

13 SEC. 777. ANNUAL REPORT.

14 Section 10 of the Rural Electrification Act of 1936 (7

15 U.S.C. 910) is repealed.

16 SEC. 778. PROHIBITION ON RESTRICTING WATER AND

17 WASTE FACILITY SERVICES TO ELECTRIC

18 CUSTOMERS.

19 The Rural Electrification Act of 1936 is amended by

20 inserting after section 16 (7 U.S.C. 916) the following:

21 ‘‘SEC. 17. PROHIBITION ON RESTRICTING WATER AND

22 WASTE FACILITY SERVICES TO ELECTRIC

23 CUSTOMERS.

24 ‘‘The Secretary shall establish rules and procedures

25 that prohibit borrowers under title III or under the Consoli-
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1 dated Farm and Rural Development Act (7 U.S.C. 1921

2 et seq.) from conditioning or limiting access to, or the use

3 of, water and waste facility services financed under the

4 Consolidated Farm and Rural Development Act if the con5 ditioning or limiting is based on whether individuals or

6 entities in the area served or proposed to be served by the

7 facility receive, or will accept, electric service from the bor8 rower.’’.

9 SEC. 779. TELEPHONE LOAN TERMS AND CONDITIONS.

10 Section 309 of the Rural Electrification Act of 1936

11 (7 U.S.C. 939) is amended—

12 (1) in subsection (a), by striking ‘‘(a) IN GEN13 ERAL.—’’; and

14 (2) by striking subsection (b).

15 SEC. 780. PRIVATIZATION PROGRAM.

16 Section 311 of the Rural Electrification Act of 1936

17 (7 U.S.C. 940a) is repealed.

18 SEC. 781. RURAL BUSINESS INCUBATOR FUND.

19 (a) IN GENERAL.—Section 502 of the Rural Elec20 trification Act of 1936 (7 U.S.C. 950aa–1) is repealed.

21 (b) CONFORMING AMENDMENTS.—Section 501 of the

22 Rural Electrification Act of 1936 (7 U.S.C. 950aa) is

23 amended—

24 (1) in paragraph (5), by inserting ‘‘and’’ at the

25 end;
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1 (2) in paragraph (6), by striking ‘‘; and’’ at the

2 end and inserting a period; and

3 (3) by striking paragraph (7).

4 Subtitle D—Miscellaneous Rural

5 Development Provisions

6 SEC. 791. INTEREST RATE FORMULA.

7 (a) BANKHEAD-JONES FARM TENANT ACT.—Section

8 32(e) of the Bankhead-Jones Farm Tenant Act (7 U.S.C.

9 1011) is amended by striking the fifth sentence and insert10 ing the following: ‘‘A loan under this subsection shall be

11 made under a contract that provides, under such terms and

12 conditions as the Secretary considers appropriate, for the

13 repayment of the loan in not more than 30 years, with in14 terest at a rate not to exceed the current market yield for

15 outstanding municipal obligations with remaining periods

16 to maturity comparable to the average maturity for the

loan, adjusted to the nearest 1 17 ⁄8 of 1 percent.’’.

18 (b) WATERSHED PROTECTION AND FLOOD PREVEN19 TION ACT.—Section 8 of the Watershed Protection and

20 Flood Prevention Act (16 U.S.C. 1006a) is amended by

21 striking the second sentence and inserting the following: ‘‘A

22 loan or advance under this section shall be made under a

23 contract or agreement that provides, under such terms and

24 conditions as the Secretary considers appropriate, for the

25 repayment of the loan or advance in not more than 50 years
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1 from the date when the principal benefits of the works of

2 improvement first become available, with interest at a rate

3 not to exceed the current market yield for outstanding mu4 nicipal obligations with remaining periods to maturity

5 comparable to the average maturity for the loan, adjusted

to the nearest 1 6 ⁄8 of 1 percent.’’.

7 SEC. 792. GRANTS FOR FINANCIALLY STRESSED FARMERS,

8 DISLOCATED FARMERS, AND RURAL FAMI9 LIES.

10 (a) IN GENERAL.—Section 502 of the Rural Develop11 ment Act of 1972 (7 U.S.C. 2662) is amended by striking

12 subsection (f).

13 (b) CONFORMING AMENDMENTS.—

14 (1) Section 2389 of the Food, Agriculture, Con15 servation, and Trade Act of 1990 (Public Law 101–

16 624; 7 U.S.C. 2662 note) is amended by striking sub17 section (d).

18 (2) Section 503(c) of the Rural Development Act

19 of 1972 (7 U.S.C. 2663(c)) is amended—

20 (A) in paragraph (1)—

21 (i) by striking ‘‘(1)’’;

22 (ii) by striking ‘‘section 502(e)’’ and

23 all that follows through ‘‘shall be distrib24 uted’’ and inserting ‘‘subsections (e), (h),
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1 and (i) of section 502 shall be distributed’’;

2 and

3 (iii) by striking ‘‘objectives of’’ and all

4 that follows through ‘‘title’’ and inserting

5 ‘‘objectives of subsections (e), (h), and (i) of

6 section 502’’; and

7 (B) by striking paragraph (2).

8 SEC. 793. COOPERATIVE AGREEMENTS.

9 (a) Section 607(b) of the Rural Development Act of

10 1972 (7 U.S.C. 2204b(b)) is amended by striking paragraph

11 (4) and inserting the following:

12 ‘‘(4) COOPERATIVE AGREEMENTS.—

13 ‘‘(A) IN GENERAL.—Notwithstanding chap14 ter 63 of title 31, United States Code, the Sec15 retary may enter into cooperative agreements

16 with other Federal agencies, State and local gov17 ernments, and any other organization or indi18 vidual to improve the coordination and effective19 ness of Federal programs, services, and actions

20 affecting rural areas, including the establishment

21 and financing of interagency groups, if the Sec22 retary determines that the objectives of the agree23 ment will serve the mutual interest of the parties

24 in rural development activities.
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1 ‘‘(B) COOPERATORS.—Each cooperator, in2 cluding each Federal agency, to the extent that

3 funds are otherwise available, may participate

4 in any cooperative agreement or working group

5 established pursuant to this paragraph by con6 tributing funds or other resources to the Sec7 retary to carry out the agreement or functions of

8 the group.’’.

9 (b) Notwithstanding any other provision of law, sec10 tion 343(a) of the Consolidated Farm and Rural Develop11 ment Act (7 U.S.C. 1991(a)) is amended in subparagraph

12 (F)—

13 (i) by striking ‘‘exceed 15 percent’’ and

14 all that follows through ‘‘Code’’ and insert15 ing the following: ‘‘exceed—

16 ‘‘(i) 25 percent of the median acreage

17 of the farms or ranches, as the case may be,

18 in the county in which the farm or ranch

19 operations of the applicant are located, as

20 reported in the most recent census of agri21 culture taken under section 142 of title 13,

22 United States Code.’’.
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1 TITLE VIII—RESEARCH

2 EXTENSION AND EDUCATION

3 Subtitle A—Amendments to Na4 tional Agricultural Research,

5 Extension, and Teaching Policy

6 Act of 1977 and Related Statutes

7 SEC. 801. PURPOSES OF AGRICULTURAL RESEARCH, EXTEN8 SION, AND EDUCATION.

9 Section 1402 of the National Agricultural Research,

10 Extension, and Teaching Policy Act of 1977 (7 U.S.C.

11 3101) is amended to read as follows:

12 ‘‘SEC. 1402. PURPOSES OF AGRICULTURAL RESEARCH, EX13 TENSION, AND EDUCATION.

14 ‘‘The purposes of federally supported agricultural re15 search, extension, and education are to—

16 ‘‘(1) enhance the competitiveness of the United

17 States agriculture and food industry in an increas18 ingly competitive world environment;

19 ‘‘(2) increase the long-term productivity of the

20 United States agriculture and food industry while

21 protecting the natural resource base on which rural

22 America and the United States agricultural economy

23 depend;
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1 ‘‘(3) develop new uses and new products for agri2 cultural commodities, such as alternative fuels, and

3 develop new crops;

4 ‘‘(4) support agricultural research and extension

5 to promote economic opportunity in rural commu6 nities and to meet the increasing demand for infor7 mation and technology transfer throughout the United

8 States agriculture industry;

9 ‘‘(5) improve risk management in the United

10 States agriculture industry;

11 ‘‘(6) improve the safe production and processing

12 of, and adding of value to, United States food and

13 fiber resources using methods that are environ14 mentally sound;

15 ‘‘(7) support higher education in agriculture to

16 give the next generation of Americans the knowledge,

17 technology, and applications necessary to enhance the

18 competitiveness of United States agriculture; and

19 ‘‘(8) maintain an adequate, nutritious, and safe

20 supply of food to meet human nutritional needs and

21 requirements.’’.

22 SEC. 802. SUBCOMMITTEE ON FOOD, AGRICULTURAL, AND

23 FORESTRY RESEARCH.

24 Section 401(h) of the National Science and Technology

25 Policy, Organization, and Priorities Act of 1976 (42 U.S.C.
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1 6651(h)) is amended by striking the second through fifth

2 sentences.

3 SEC. 803. JOINT COUNCIL ON FOOD AND AGRICULTURAL

4 SCIENCES.

5 (a) IN GENERAL.—Section 1407 of the National Agri6 cultural Research, Extension, and Teaching Policy Act of

7 1977 (7 U.S.C. 3122) is repealed.

8 (b) CONFORMING AMENDMENTS.—

9 (1) Section 1404 of the National Agricultural

10 Research, Extension, and Teaching Policy Act of 1977

11 (7 U.S.C. 3103) is amended—

12 (A) by striking paragraph (9); and

13 (B) by redesignating paragraphs (10)

14 through (18) as paragraphs (9) through (17), re15 spectively.

16 (2) Section 1405 of the National Agricultural

17 Research, Extension, and Teaching Policy Act of 1977

18 (7 U.S.C. 3121) is amended—

19 (A) in paragraph (5), by striking ‘‘Joint

20 Council, Advisory Board,’’ and inserting ‘‘Advi21 sory Board’’; and

22 (B) in paragraph (11), by striking ‘‘the

23 Joint Council,’’.

24 (3) Section 1410(2) of the National Agricultural

25 Research, Extension, and Teaching Policy Act of 1977
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1 (7 U.S.C. 3125(2)) is amended by striking ‘‘the rec2 ommendations of the Joint Council developed under

3 section 1407(f),’’.

4 (4) Section 1412 of the National Agricultural

5 Research, Extension, and Teaching Policy Act of 1977

6 (7 U.S.C. 3127) is amended—

7 (A) in the section heading, by striking

8 ‘‘JOINT COUNCIL, ADVISORY BOARD,’’ and

9 inserting ‘‘ADVISORY BOARD’’;

10 (B) in subsection (a)—

11 (i) by striking ‘‘Joint Council, the Ad12 visory Board,’’ and inserting ‘‘Advisory

13 Board’’;

14 (ii) by striking ‘‘the cochairpersons of

15 the Joint Council and’’ each place it ap16 pears; and

17 (iii) in paragraph (2), by striking

18 ‘‘one shall serve as the executive secretary to

19 the Joint Council, one shall serve as the ex20 ecutive secretary to the Advisory Board,’’

21 and inserting ‘‘1 shall serve as the executive

22 secretary to the Advisory Board’’; and

23 (C) in subsections (b) and (c), by striking

24 ‘‘Joint Council, Advisory Board,’’ each place it

25 appears and inserting ‘‘Advisory Board’’.
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1 (5) Section 1413 of the National Agricultural

2 Research, Extension, and Teaching Policy Act of 1977

3 (7 U.S.C. 3128) is amended—

4 (A) in subsection (a), by striking ‘‘Joint

5 Council, the Advisory Board,’’ and inserting

6 ‘‘Advisory Board’’;

7 (B) in subsection (b), by striking ‘‘Joint

8 Council, Advisory Board,’’ and inserting ‘‘Advi9 sory Board’’; and

10 (C) by striking subsection (d).

11 (6) Section 1434(c) of the National Agricultural

12 Research, Extension, and Teaching Policy Act of 1977

13 (7 U.S.C. 3196(c)) is amended—

14 (A) in the second sentence, by striking

15 ‘‘Joint Council, the Advisory Board,’’ and insert16 ing ‘‘Advisory Board’’; and

17 (B) in the fourth sentence, by striking ‘‘the

18 Joint Council,’’.

19 SEC. 804. NATIONAL AGRICULTURAL RESEARCH, EXTEN20 SION, EDUCATION, AND ECONOMICS ADVI21 SORY BOARD.

22 (a) IN GENERAL.—Section 1408 of the National Agri23 cultural Research, Extension, and Teaching Policy Act of

24 1977 (7 U.S.C. 3123) is amended to read as follows:
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1 ‘‘SEC. 1408. NATIONAL AGRICULTURAL RESEARCH, EXTEN2 SION, EDUCATION, AND ECONOMICS ADVI3 SORY BOARD.

4 ‘‘(a) ESTABLISHMENT.—The Secretary shall establish

5 within the Department of Agriculture a board to be known

6 as the ‘National Agricultural Research, Extension, Edu7 cation, and Economics Advisory Board’.

8 ‘‘(b) MEMBERSHIP.—

9 ‘‘(1) IN GENERAL.—The Advisory Board shall

10 consist of 25 members, appointed by the Secretary.

11 ‘‘(2) SELECTION OF MEMBERS.—The Secretary

12 shall appoint members to the Advisory Board from

13 individuals who are selected from national farm, com14 modity, agribusiness, environmental, consumer, and

15 other organizations directly concerned with agricul16 tural research, education, and extension programs.

17 ‘‘(3) REPRESENTATION.—A member of the Advi18 sory Board may represent 1 or more of the organiza19 tions referred to in paragraph (2), except that 1 mem20 ber shall be a representative of the scientific commu21 nity that is not closely associated with agriculture.

22 The Secretary shall ensure that the membership of the

23 Advisory Board includes full-time farmers and ranch24 ers and represents the interests of the full variety of

25 stakeholders in the agricultural sector.

26 ‘‘(c) DUTIES.—The Advisory Board shall—
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1 ‘‘(1) review and provide consultation to the Sec2 retary and land-grant colleges and universities on

3 long-term and short-term national policies and prior4 ities, as set forth in section 1402, relating to agricul5 tural research, extension, education, and economics;

6 ‘‘(2) evaluate the results and effectiveness of agri7 cultural research, extension, education, and economics

8 with respect to the policies and priorities;

9 ‘‘(3) review and make recommendations to the

10 Under Secretary of Agriculture for Research, Edu11 cation, and Economics on the research, extension,

12 education, and economics portion of the draft strate13 gic plan required under section 306 of title 5, United

14 States Code; and

15 ‘‘(4) review the mechanisms of the Department of

16 Agriculture for technology assessment (which should

17 be conducted by qualified professionals) for the pur18 poses of—

19 ‘‘(A) performance measurement and evalua20 tion of the implementation by the Secretary of

21 the strategic plan required under section 306 of

22 title 5, United States Code;

23 ‘‘(B) implementation of the national re24 search policies and priorities set forth in section

25 1402; and
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1 ‘‘(C) the development of mechanisms for the

2 assessment of emerging public and private agri3 cultural research and technology transfer initia4 tives.

5 ‘‘(d) CONSULTATION.—In carrying out this section, the

6 Advisory Board shall solicit opinions and recommendations

7 from persons who will benefit from and use federally funded

8 agricultural research, extension, education, and economics.

9 ‘‘(e) APPOINTMENT.—A member of the Advisory Board

10 shall be appointed by the Secretary for a term of up to 3

11 years. The members of the Advisory Board shall be ap12 pointed to serve staggered terms.

13 ‘‘(f) FEDERAL ADVISORY COMMITTEE ACT.—The Advi14 sory Board shall be deemed to have filed a charter for the

15 purpose of section 9(c) of the Federal Advisory Committee

16 Act (5 U.S.C. App.).

17 ‘‘(g) TERMINATION.—The Advisory Board shall re18 main in existence until September 30, 2002.’’.

19 (b) CONFORMING AMENDMENTS.—

20 (1) Section 1404(1) of the National Agricultural

21 Research, Extension, and Teaching Policy Act of 1977

22 (7 U.S.C. 3103(1)) is amended by striking ‘‘National

23 Agricultural Research and Extension Users Advisory

24 Board’’ and inserting ‘‘National Agricultural Re-
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1 search, Extension, Education, and Economics Advi2 sory Board’’.

3 (2) Section 1410(2) of the National Agricultural

4 Research, Extension, and Teaching Policy Act of 1977

5 (7 U.S.C. 3125(2)) is amended by striking ‘‘the rec6 ommendations of the Advisory Board developed under

7 section 1408(g),’’ and inserting ‘‘any recommenda8 tions of the Advisory Board’’.

9 (3) The last sentence of section 4(a) of the Re10 newable Resources Extension Act of 1978 (16 U.S.C.

11 1673(a)) is amended by striking ‘‘National Agricul12 tural Research and Extension Users Advisory Board’’

13 and inserting ‘‘National Agricultural Research, Ex14 tension, Education, and Economics Advisory Board’’.

15 SEC. 805. AGRICULTURAL SCIENCE AND TECHNOLOGY RE16 VIEW BOARD.

17 (a) IN GENERAL.—Section 1408A of the National Ag18 ricultural Research, Extension, and Teaching Policy Act of

19 1977 (7 U.S.C. 3123a) is repealed.

20 (b) CONFORMING AMENDMENTS.—

21 (1) Section 1404 of the National Agricultural

22 Research, Extension, and Teaching Policy Act of 1977

23 (7 U.S.C. 3103) (as amended by section 803(b)(1)(B))

24 is further amended—
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1 (A) in paragraph (15), by adding ‘‘and’’ at

2 the end;

3 (B) in paragraph (16), by striking ‘‘; and’’

4 and inserting a period; and

5 (C) by striking paragraph (17).

6 (2) Section 1405(12) of the National Agricul7 tural Research, Extension, and Teaching Policy Act

8 of 1977 (7 U.S.C. 3121(12)) is amended by striking

9 ‘‘, after coordination with the Technology Board,’’.

10 (3) Section 1410(2) of the National Agricultural

11 Research, Extension, and Teaching Policy Act of 1977

12 (7 U.S.C. 3125(2)) (as amended by section 804(b)(2))

13 is further amended by striking ‘‘and the recommenda14 tions of the Technology Board developed under section

15 1408A(d)’’.

16 (4) Section 1412 of the National Agricultural

17 Research, Extension, and Teaching Policy Act of 1977

18 (7 U.S.C. 3127) (as amended by section 803(b)(4)) is

19 further amended—

20 (A) in the section heading, by striking

21 ‘‘AND TECHNOLOGY BOARD’’;

22 (B) in subsection (a)—

23 (i) by striking ‘‘and the Technology

24 Board’’ each place it appears; and
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1 (ii) in paragraph (2), by striking ‘‘and

2 one shall serve as the executive secretary to

3 the Technology Board’’; and

4 (C) in subsections (b) and (c), by striking

5 ‘‘and Technology Board’’ each place it appears.

6 (5) Section 1413 of the National Agricultural

7 Research, Extension, and Teaching Policy Act of 1977

8 (7 U.S.C. 3128) (as amended by section 803(b)(5)) is

9 further amended—

10 (A) in subsection (a), by striking ‘‘or the

11 Technology Board’’; and

12 (B) in subsection (b), by striking ‘‘and the

13 Technology Board’’.

14 SEC. 806. FEDERAL ADVISORY COMMITTEE ACT EXEMPTION

15 FOR FEDERAL-STATE COOPERATIVE PRO16 GRAMS.

17 Section 1409A of the National Agricultural Research,

18 Extension, and Teaching Policy Act of 1977 (7 U.S.C.

19 3124a) is amended by adding at the end the following:

20 ‘‘(e) APPLICABILITY OF FEDERAL ADVISORY COMMIT21 TEE ACT.—

22 ‘‘(1) PUBLIC MEETINGS.—All meetings of any

23 entity described in paragraph (2) shall be publicly

24 announced in advance and shall be open to the pub25 lic. Detailed minutes of meetings and other appro-
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1 priate records of the activities of such an entity shall

2 be kept and made available to the public on request.

3 ‘‘(2) EXEMPTION.—The Federal Advisory Com4 mittee Act (5 U.S.C. App.) and title XVIII of the

5 Food and Agriculture Act of 1977 (7 U.S.C. 2281 et

6 seq.) shall not apply to any committee, board, com7 mission, panel, or task force, or similar entity that—

8 ‘‘(A) is created for the purpose of coopera9 tive efforts in agricultural research, extension, or

10 teaching; and

11 ‘‘(B) consists entirely of full-time Federal

12 employees and individuals who are employed by,

13 or who are officials of, a State cooperative insti14 tution or a State cooperative agent.’’.

15 SEC. 807. COORDINATION AND PLANNING OF AGRICUL16 TURAL RESEARCH, EXTENSION, AND EDU17 CATION.

18 Subtitle B of the National Agricultural Research, Ex19 tension, and Teaching Policy Act of 1977 (7 U.S.C. 3121

20 et seq.) is amended by adding at the end the following:

21 ‘‘SEC. 1413A. ACCOUNTABILITY.

22 ‘‘(a) IN GENERAL.—The Secretary shall develop and

23 carry out a system to monitor and evaluate agricultural

24 research and extension activities conducted or supported by

25 the Federal Government that will enable the Secretary to
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1 measure the impact of research, extension, and education

2 programs according to priorities, goals, and mandates es3 tablished by law.

4 ‘‘(b) CONSISTENCY WITH OTHER REQUIREMENTS.—

5 The system shall be developed and carried out in a manner

6 that is consistent with the Government Performance and

7 Results Act of 1993 (Public Law 103–62; 107 Stat. 285)

8 and amendments made by the Act.

9 ‘‘SEC. 1413B. IMMINENT OR EMERGING THREATS TO FOOD

10 SAFETY AND ANIMAL AND PLANT HEALTH.

11 ‘‘In the case of any activities of an agency of the De12 partment of Agriculture that relate to food safety, animal

13 or plant health, research, education, or technology transfer,

14 the Secretary may transfer up to 5 percent of any amounts

15 made available to the agency for a fiscal year to an agency

16 of the Department of Agriculture reporting to the Under

17 Secretary of Agriculture for Research, Education, and Eco18 nomics for the purpose of addressing imminent or emerging

19 threats to food safety and animal and plant health.

20 ‘‘SEC. 1413C. FEDERAL ADVISORY COMMITTEE ACT EXEMP21 TION FOR COMPETITIVE RESEARCH, EXTEN22 SION, AND EDUCATION PROGRAMS.

23 ‘‘The Federal Advisory Committee Act (5 U.S.C. App.)

24 and title XVIII of the Food and Agriculture Act of 1977

25 (7 U.S.C. 2281 et seq.) shall not apply to any committee,
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1 board, commission, panel, or task force, or similar entity,

2 created solely for the purpose of reviewing applications or

3 proposals requesting funding under any competitive re4 search, extension, or education program carried out by the

5 Secretary.’’.

6 SEC. 808. GRANTS AND FELLOWSHIPS FOR FOOD AND AGRI7 CULTURAL SCIENCES EDUCATION.

8 (a) IN GENERAL.—Section 1417 of the National Agri9 cultural Research, Extension, and Teaching Policy Act of

10 1977 (7 U.S.C. 3152) is amended—

11 (1) in subsection (b)—

12 (A) by inserting before ‘‘for a period’’ the

13 following: ‘‘or to research foundations main14 tained by the colleges and universities,’’; and

15 (B) by striking paragraph (4) and inserting

16 the following:

17 ‘‘(4) to design and implement food and agricul18 tural programs to build teaching and research capac19 ity at primarily minority institutions;’’;

20 (2) by redesignating subsections (h) and (i) as

21 subsections (i) and (j), respectively;

22 (3) by inserting after subsection (g) the follow23 ing:

24 ‘‘(h) SECONDARY EDUCATION AND 2-YEAR POST25 SECONDARY EDUCATION TEACHING PROGRAMS.—
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1 ‘‘(1) AGRISCIENCE AND AGRIBUSINESS EDU2 CATION.—The Secretary shall—

3 ‘‘(A) promote and strengthen secondary edu4 cation and 2-year postsecondary education in

5 agriscience and agribusiness in order to help en6 sure the existence in the United States of a

7 qualified workforce to serve the food and agricul8 tural sciences system; and

9 ‘‘(B) promote complementary and syner10 gistic linkages among secondary, 2-year post11 secondary, and higher education programs in the

12 food and agricultural sciences in order to pro13 mote excellence in education and encourage more

14 young Americans to pursue and complete a bac15 calaureate or higher degree in the food and agri16 cultural sciences.

17 ‘‘(2) GRANTS.—The Secretary may make com18 petitive or noncompetitive grants, for grant periods

19 not to exceed 5 years, to public secondary education

20 institutions, 2-year community colleges, and junior

21 colleges that have made a commitment to teaching

22 agriscience and agribusiness—

23 ‘‘(A) to enhance curricula in agricultural

24 education;
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1 ‘‘(B) to increase faculty teaching com2 petencies;

3 ‘‘(C) to interest young people in pursuing a

4 higher education in order to prepare for sci5 entific and professional careers in the food and

6 agricultural sciences;

7 ‘‘(D) to promote the incorporation of

8 agriscience and agribusiness subject matter into

9 other instructional programs, particularly class10 es in science, business, and consumer education;

11 ‘‘(E) to facilitate joint initiatives among

12 other secondary or 2-year postsecondary institu13 tions and with 4-year colleges and universities to

14 maximize the development and use of resources

15 such as faculty, facilities, and equipment to im16 prove agriscience and agribusiness education;

17 and

18 ‘‘(F) to support other initiatives designed to

19 meet local, State, regional, or national needs re20 lated to promoting excellence in agriscience and

21 agribusiness education.’’; and

22 (4) in subsection (j) (as so redesignated), by

23 striking ‘‘1995’’ and inserting ‘‘2002’’.

24 (b) TRANSFER OF FUNCTIONS AND DUTIES PERTAIN25 ING TO THE FUTURE FARMERS OF AMERICA.—
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1 (1) IN GENERAL.—There are transferred to the

2 Secretary of Agriculture all the functions and duties

3 of the Secretary of Education under the Act entitled

4 ‘‘An Act to incorporate the Future Farmers of Amer5 ica, and for other purposes’’, approved August 30,

6 1950 (36 U.S.C. 271 et seq.).

7 (2) PERSONNEL AND UNEXPENDED BALANCES.—

8 There are transferred to the Department of Agri9 culture all personnel and balances of unexpended ap10 propriations available for carrying out the duties and

11 functions transferred under paragraph (1).

12 (3) AMENDMENTS.—The Act entitled ‘‘An Act to

13 incorporate the Future Farmers of America, and for

14 other purposes’’, approved August 30, 1950, is amend15 ed—

16 (A) in section 7(c) (36 U.S.C. 277(c)) by

17 striking ‘‘Secretary of Education, the executive

18 secretary shall be a member of the Department of

19 Education’’ and inserting ‘‘Secretary of Agri20 culture, the executive secretary shall be an officer

21 or employee of the Department of Agriculture’’;

22 (B) in section 8(a) (36 U.S.C. 278(a))—

23 (i) by striking ‘‘Secretary of Edu24 cation’’ and inserting ‘‘Secretary of Agri25 culture’’; and
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1 (ii) by striking ‘‘Department of Edu2 cation’’ and inserting ‘‘Department of Agri3 culture’’; and

4 (C) in section 18 (36 U.S.C. 288)—

5 (i) by striking ‘‘Secretary of Edu6 cation’’ each place it appears and inserting

7 ‘‘Secretary of Agriculture’’; and

8 (ii) by striking ‘‘Department of Edu9 cation’’ each place it appears and inserting

10 ‘‘Department of Agriculture’’.

11 SEC. 809. GRANTS FOR RESEARCH ON THE PRODUCTION

12 AND MARKETING OF ALCOHOLS AND INDUS13 TRIAL HYDROCARBONS FROM AGRICUL14 TURAL COMMODITIES AND FOREST PROD15 UCTS.

16 Section 1419(d) of the National Agricultural Research,

17 Extension, and Teaching Policy Act of 1977 (7 U.S.C.

18 3154(d)) is amended by striking ‘‘1995’’ and inserting

19 ‘‘2002’’.

20 SEC. 810. POLICY RESEARCH CENTERS.

21 The National Agricultural Research, Extension, and

22 Teaching Policy Act of 1977 (as amended by section 809)

23 is further amended by inserting after section 1418 (7 U.S.C.

24 3153) the following:
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1 ‘‘SEC. 1419. POLICY RESEARCH CENTERS.

2 ‘‘(a) IN GENERAL.—Consistent with this section, the

3 Secretary may make grants, competitive grants, and special

4 research grants to, and enter into cooperative agreements

5 and other contracting instruments with, policy research

6 centers to conduct research and education programs that

7 are objective, operationally independent, and external to the

8 Federal Government and that concern the effect of public

9 policies on—

10 ‘‘(1) the farm and agricultural sectors;

11 ‘‘(2) the environment;

12 ‘‘(3) rural families, households and economies;

13 and

14 ‘‘(4) consumers, food, and nutrition.

15 ‘‘(b) ELIGIBLE RECIPIENTS.—Except to the extent oth16 erwise prohibited by law, State agricultural experiment sta17 tions, colleges and universities, other research institutions

18 and organizations, private organizations, corporations, and

19 individuals shall be eligible to apply for and receive funding

20 under subsection (a).

21 ‘‘(c) ACTIVITIES.—Under this section, funding may be

22 provided for disciplinary and interdisciplinary research

23 and education concerning activities consistent with this sec24 tion, including activities that—

25 ‘‘(1) quantify the implications of public policies

26 and regulations;
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1 ‘‘(2) develop theoretical and research methods;

2 ‘‘(3) collect and analyze data for policymakers,

3 analysts, and individuals; and

4 ‘‘(4) develop programs to train analysts.

5 ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There

6 are authorized to be appropriated such sums as are nec7 essary to carry out this section for fiscal years 1996 through

8 2002.’’.

9 SEC. 811. HUMAN NUTRITION INTERVENTION AND HEALTH

10 PROMOTION RESEARCH PROGRAM.

11 Section 1424 of the National Agricultural Research,

12 Extension, and Teaching Policy Act of 1977 (7 U.S.C.

13 3174) is amended to read as follows:

14 ‘‘SEC. 1424. HUMAN NUTRITION INTERVENTION AND

15 HEALTH PROMOTION RESEARCH PROGRAM.

16 ‘‘(a) AUTHORITY OF SECRETARY.—

17 ‘‘(1) IN GENERAL.—The Secretary may establish,

18 and award grants for projects for, a multi-year re19 search initiative on human nutrition intervention

20 and health promotion.

21 ‘‘(2) EMPHASIS OF INITIATIVE.—In administer22 ing human nutrition research projects under this sec23 tion, the Secretary shall give specific emphasis to—

24 ‘‘(A) coordinated longitudinal research as25 sessments of nutritional status; and
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1 ‘‘(B) the implementation of unified, innova2 tive intervention strategies;

3 to identify and solve problems of nutritional inad4 equacy and contribute to the maintenance of health,

5 well-being, performance, and productivity of individ6 uals, thereby reducing the need of the individuals to

7 use the health care system and social programs of the

8 United States.

9 ‘‘(b) ADMINISTRATION OF FUNDS.—The Administrator

10 of the Agricultural Research Service shall administer funds

11 made available to carry out this section to ensure a coordi12 nated approach to health and nutrition research efforts.

13 ‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There are

14 authorized to be appropriated such sums as are necessary

15 to carry out this section for fiscal years 1996 through

16 2002.’’.

17 SEC. 812. FOOD AND NUTRITION EDUCATION PROGRAM.

18 Section 1425(c)(3) of the National Agricultural Re19 search, Extension, and Teaching Policy Act of 1977 (7

20 U.S.C. 3175(c)(3)) is amended by striking ‘‘fiscal year

21 1995’’ and inserting ‘‘each of fiscal years 1996 through

22 2002’’.
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1 SEC. 813. PURPOSES AND FINDINGS RELATING TO ANIMAL

2 HEALTH AND DISEASE RESEARCH.

3 Section 1429 of the National Agricultural Research,

4 Extension, and Teaching Policy Act of 1977 (7 U.S.C.

5 3191) is amended to read as follows:

6 ‘‘SEC. 1429. PURPOSES AND FINDINGS RELATING TO ANI7 MAL HEALTH AND DISEASE RESEARCH.

8 ‘‘(a) PURPOSES.—The purposes of this subtitle are

9 to—

10 ‘‘(1) promote the general welfare through the im11 proved health and productivity of domestic livestock,

12 poultry, aquatic animals, and other income-producing

13 animals that are essential to the food supply of the

14 United States and the welfare of producers and con15 sumers of animal products;

16 ‘‘(2) improve the health of horses;

17 ‘‘(3) facilitate the effective treatment of, and, to

18 the extent possible, prevent animal and poultry dis19 eases in both domesticated and wild animals that, if

20 not controlled, would be disastrous to the United

21 States livestock and poultry industries and endanger

22 the food supply of the United States;

23 ‘‘(4) improve methods for the control of orga24 nisms and residues in food products of animal origin

25 that could endanger the human food supply;
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1 ‘‘(5) improve the housing and management of

2 animals to improve the well-being of livestock produc3 tion species;

4 ‘‘(6) minimize livestock and poultry losses due to

5 transportation and handling;

6 ‘‘(7) protect human health through control of

7 animal diseases transmissible to humans;

8 ‘‘(8) improve methods of controlling the births of

9 predators and other animals; and

10 ‘‘(9) otherwise promote the general welfare

11 through expanded programs of research and extension

12 to improve animal health.

13 ‘‘(b) FINDINGS.—Congress finds that—

14 ‘‘(1) the total animal health and disease research

15 and extension efforts of State colleges and universities

16 and of the Federal Government would be more effec17 tive if there were close coordination between the ef18 forts; and

19 ‘‘(2) colleges and universities having accredited

20 schools or colleges of veterinary medicine and State

21 agricultural experiment stations that conduct animal

22 health and disease research are especially vital in

23 training research workers in animal health and relat24 ed disciplines.’’.
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1 SEC. 814. ANIMAL HEALTH SCIENCE RESEARCH ADVISORY

2 BOARD.

3 Section 1432 of the National Agricultural Research,

4 Extension, and Teaching Policy Act of 1977 (7 U.S.C.

5 3194) is repealed.

6 SEC. 815. ANIMAL HEALTH AND DISEASE CONTINUING RE7 SEARCH.

8 Section 1433 of the National Agricultural Research,

9 Extension, and Teaching Policy Act of 1977 (7 U.S.C.

10 3195) is amended—

11 (1) in the first sentence of subsection (a), by

12 striking ‘‘1995’’ and inserting ‘‘2002’’;

13 (2) in subsection (b)(2)—

14 (A) by striking ‘‘domestic livestock and

15 poultry’’ each place it appears and inserting

16 ‘‘domestic livestock, poultry, and commercial

17 aquaculture species’’; and

18 (B) in the second sentence, by striking

19 ‘‘horses, and poultry’’ and inserting ‘‘horses,

20 poultry, and commercial aquaculture species’’;

21 (3) in subsection (d), by striking ‘‘domestic live22 stock and poultry’’ and inserting ‘‘domestic livestock,

23 poultry, and commercial aquaculture species’’; and

24 (4) in subsection (f), by striking ‘‘domestic live25 stock and poultry’’ and inserting ‘‘domestic livestock,

26 poultry, and commercial aquaculture species’’.
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1 SEC. 816. ANIMAL HEALTH AND DISEASE NATIONAL OR RE2 GIONAL RESEARCH.

3 Section 1434 of the National Agricultural Research,

4 Extension, and Teaching Policy Act of 1977 (7 U.S.C.

5 3196) is amended—

6 (1) in subsection (a)—

7 (A) by inserting ‘‘or national or regional

8 problems relating to pre-harvest, on-farm food

9 safety, or animal well-being,’’ after ‘‘problems,’’;

10 and

11 (B) by striking ‘‘1995’’ and inserting

12 ‘‘2002’’;

13 (2) in subsection (b), by striking ‘‘eligible insti14 tutions’’ and inserting ‘‘State agricultural experiment

15 stations, colleges and universities, other research insti16 tutions and organizations, Federal agencies, private

17 organizations or corporations, and individuals’’;

18 (3) in subsection (c)—

19 (A) in the first sentence, by inserting ‘‘, food

20 safety, and animal well-being’’ after ‘‘animal

21 health and disease’’; and

22 (B) in the fourth sentence—

23 (i) by redesignating paragraphs (2)

24 and (3) as paragraphs (4) and (5), respec25 tively; and
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1 (ii) by inserting after paragraph (1)

2 the following:

3 ‘‘(2) any food safety problem that has a signifi4 cant pre-harvest (on-farm) component and is recog5 nized as posing a significant health hazard to the

6 consuming public;

7 ‘‘(3) issues of animal well-being related to pro8 duction methods that will improve the housing and

9 management of animals to improve the well-being of

10 livestock production species;’’;

11 (4) in the first sentence of subsection (d), by

12 striking ‘‘to eligible institutions’’; and

13 (5) by adding at the end the following:

14 ‘‘(f) APPLICABILITY OF FEDERAL ADVISORY COMMIT15 TEE ACT.—The Federal Advisory Committee Act (5 U.S.C.

16 App.) and title XVIII of the Food and Agriculture Act of

17 1977 (7 U.S.C. 2281 et seq.) shall not apply to a panel

18 or board created solely for the purpose of reviewing applica19 tions or proposals submitted under this subtitle.’’.

20 SEC. 817. RESIDENT INSTRUCTION PROGRAM AT 1890 LAND21 GRANT COLLEGES.

22 Section 1446 of the National Agricultural Research,

23 Extension, and Teaching Policy Act of 1977 (7 U.S.C.

24 3222a) is repealed.
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1 SEC. 818. GRANT PROGRAM TO UPGRADE AGRICULTURAL

2 AND FOOD SCIENCES FACILITIES AT 1890

3 LAND-GRANT COLLEGES.

4 Section 1447(b) of the National Agricultural Research,

5 Extension, and Teaching Policy Act of 1977 (7 U.S.C.

6 3222b(b)) is amended by striking ‘‘$8,000,000 for each of

7 the fiscal years 1991 through 1995’’ and inserting

8 ‘‘$15,000,000 for each of fiscal years 1996 through 2002’’.

9 SEC. 819. NATIONAL RESEARCH AND TRAINING CENTEN10 NIAL CENTERS AUTHORIZATION.

11 Section 1448 of the National Agricultural Research,

12 Extension, and Teaching Policy Act of 1977 (7 U.S.C.

13 3222c) is amended—

14 (1) in subsection (a)(1), by inserting ‘‘, or fiscal

15 years 1996 through 2002,’’ after ‘‘1995’’; and

16 (2) in subsection (f), by striking ‘‘1995’’ and in17 serting ‘‘2002’’.

18 SEC. 820. GRANTS TO STATES FOR INTERNATIONAL TRADE

19 DEVELOPMENT CENTERS.

20 Section 1458A of the National Agricultural Research,

21 Extension, and Teaching Policy Act of 1977 (7 U.S.C.

22 3292) is repealed.

23 SEC. 821. AGRICULTURAL RESEARCH PROGRAMS.

24 Section 1463 of the National Agricultural Research,

25 Extension, and Teaching Policy Act of 1977 (7 U.S.C.
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1 3311) is amended by striking ‘‘1995’’ each place it appears

2 and inserting ‘‘2002’’.

3 SEC. 822. EXTENSION EDUCATION.

4 Section 1464 of the National Agricultural Research,

5 Extension, and Teaching Policy Act of 1977 (7 U.S.C.

6 3312) is amended by striking ‘‘fiscal year 1995’’ and insert7 ing ‘‘each of fiscal years 1995 through 2002’’.

8 SEC. 823. SUPPLEMENTAL AND ALTERNATIVE CROPS RE9 SEARCH.

10 Section 1473D of the National Agricultural Research,

11 Extension, and Teaching Policy Act of 1977 (7 U.S.C.

12 3319d) is amended—

13 (1) in subsection (a)—

14 (A) by striking ‘‘1995’’ and inserting

15 ‘‘2002’’; and

16 (B) by striking ‘‘and pilot’’;

17 (2) in subsection (c)—

18 (A) in paragraph (2)—

19 (i) in subparagraph (B), by striking

20 ‘‘at pilot sites’’ through ‘‘the area’’; and

21 (ii) in subparagraph (D)—

22 (I) by striking ‘‘near such pilot

23 sites’’; and
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1 (II) by striking ‘‘successful pilot

2 program’’ and inserting ‘‘successful

3 program’’;

4 (B) in paragraph (3)—

5 (i) by striking ‘‘pilot’’;

6 (ii) in subparagraph (C), by striking

7 ‘‘and’’ at the end;

8 (iii) in subparagraph (D), by striking

9 the period at the end and inserting a semi10 colon; and

11 (iv) by adding at the end the following:

12 ‘‘(E) to conduct fundamental and applied re13 search related to the development of new commercial

14 products derived from natural plant material for in15 dustrial, medical, and agricultural applications; and

16 ‘‘(F) to participate with colleges and univer17 sities, other Federal agencies, and private sector enti18 ties in conducting research described in subparagraph

19 (E).’’

20 SEC. 824. AQUACULTURE ASSISTANCE PROGRAMS.

21 (a) REPORTS.—Section 1475 of the National Agricul22 tural Research, Extension, and Teaching Policy Act of 1977

23 (7 U.S.C. 3322) is amended—

24 (1) by striking subsection (e); and
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1 (2) by redesignating subsections (f) and (g) as

2 subsections (e) and (f), respectively.

3 (b) 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 ‘‘2002’’.

7 (c) RESEARCH AND EXTENSION.—Section 1477 of the

8 National Agricultural Research, Extension, and Teaching

9 Policy Act of 1977 (7 U.S.C. 3324) is amended by striking

10 ‘‘1995’’ and inserting ‘‘2002’’.

11 SEC. 825. RANGELAND RESEARCH.

12 (a) REPORTS.—Section 1481 of the National Agricul13 tural Research, Extension, and Teaching Policy Act of 1977

14 (7 U.S.C. 3334) is repealed.

15 (b) ADVISORY BOARD.—Section 1482 of the National

16 Agricultural Research, Extension, and Teaching Policy Act

17 of 1977 (7 U.S.C. 3335) is repealed.

18 (c) AUTHORIZATION OF APPROPRIATIONS.—Section

19 1483(a) of the National Agricultural Research, Extension,

20 and Teaching Policy Act of 1977 (7 U.S.C. 3336(a)) is

21 amended by striking ‘‘1995’’ and inserting ‘‘2002’’.

22 SEC. 826. TECHNICAL AMENDMENTS.

23 The table of contents of the Food and Agriculture Act

24 of 1977 (Public Law 95–113; 91 Stat. 913) is amended—
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1 (1) by striking the item relating to section 1402

2 and inserting the following:

‘‘Sec. 1402. Purposes of agricultural research, extension, and education.’’;

3 (2) by striking the items relating to sections

4 1406, 1407, 1408A, 1432, 1446, 1458A, 1481, and

5 1482;

6 (3) by striking the item relating to section 1408

7 and inserting the following:

‘‘Sec. 1408. National Agricultural Research, Extension, Education, and Economics

Advisory Board.’’;

8 (4) by striking the item relating to section 1412

9 and inserting the following:

‘‘Sec. 1412. Support for the Advisory Board.’’;

10 (5) by adding at the end of the items relating to

11 subtitle B of title XIV the following:

‘‘Sec. 1413A. Accountability.

‘‘Sec. 1413B. Imminent or emerging threats to food safety and animal and plant

health.

‘‘Sec. 1413C. Federal Advisory Committee Act exemption for competitive research,

extension, and education programs.’’;

12 (6) by striking the item relating to section 1419

13 and inserting the following:

‘‘Sec. 1419. Policy research centers.’’;

14 (7) by striking the item relating to section 1424

15 and inserting the following:

‘‘Sec. 1424. Human nutrition intervention and health promotion research program.’’;

16 and

17 (8) by striking the item relating to section 1429

18 and inserting the following:
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‘‘Sec. 1429. Purposes and findings relating to animal health and disease research.’’.

1 Subtitle B—Amendments to Food,

2 Agriculture, Conservation, and

3 Trade Act of 1990

4 SEC. 831. WATER QUALITY RESEARCH, EDUCATION, AND CO5 ORDINATION.

6 (a) IN GENERAL.—Subtitle G of title XIV of the Food,

7 Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C.

8 5501 et seq.) is repealed.

9 (b) CONFORMING AMENDMENTS.—

10 (1) Section 1627(a)(3) of the Food, Agriculture,

11 Conservation, and Trade Act of 1990 (7 U.S.C.

12 5821(a)(3)) is amended by striking ‘‘, subtitle G of

13 title XIV,’’.

14 (2) Section 1628 of the Food, Agriculture, Con15 servation, and Trade Act of 1990 (7 U.S.C. 5831) is

16 amended by striking ‘‘, subtitle G of title XIV,’’ each

17 place it appears in subsections (a) and (d).

18 (3) Section 1629 of the Food, Agriculture, Con19 servation, and Trade Act of 1990 (7 U.S.C. 5832) is

20 amended by striking ‘‘, subtitle G of title XIV,’’ each

21 place it appears in subsections (f) and (g)(11).
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1 SEC. 832. EDUCATION PROGRAM REGARDING HANDLING OF

2 AGRICULTURAL CHEMICALS AND AGRICUL3 TURAL CHEMICAL CONTAINERS.

4 (a) IN GENERAL.—Section 1499A of the Food, Agri5 culture, Conservation, and Trade Act of 1990 (7 U.S.C.

6 3125c) is repealed.

7 (b) CONFORMING AMENDMENT.—Section 1499(b) of

8 the Food, Agriculture, Conservation, and Trade Act of 1990

9 (7 U.S.C. 5506(b)) is amended by striking ‘‘and section

10 1499A’’.

11 SEC. 833. PROGRAM ADMINISTRATION.

12 (a) IN GENERAL.—Section 1622 of the Food, Agri13 culture, Conservation, and Trade Act of 1990 (7 U.S.C.

14 5812) is amended—

15 (1) by striking subsections (b), (c), and (d); and

16 (2) by redesignating subsection (e) as subsection

17 (b).

18 (b) CONFORMING AMENDMENTS.—

19 (1) Section 1619(b) of the Food, Agriculture,

20 Conservation, and Trade Act of 1990 (7 U.S.C.

21 5801(b)) is amended—

22 (A) by striking paragraph (7); and

23 (B) by redesignating paragraphs (8), (9),

24 and (10) as paragraphs (7), (8), and (9), respec25 tively.
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1 (2) Section 1621(c) of the Food, Agriculture,

2 Conservation, and Trade Act of 1990 (7 U.S.C.

3 5811(c)) is amended—

4 (A) in paragraph (1)—

5 (i) by striking subparagraph (A); and

6 (ii) by redesignating subparagraphs

7 (B) through (E) as subparagraphs (A)

8 through (D), respectively; and

9 (B) in paragraph (2)—

10 (i) by striking subparagraph (A); and

11 (ii) by redesignating subparagraphs

12 (B) through (F) as subparagraphs (A)

13 through (E), respectively.

14 (3) Section 1622 of the Food, Agriculture, Con15 servation, and Trade Act of 1990 (7 U.S.C. 5812) (as

16 amended by subsection (a)) is further amended—

17 (A) in subsection (a)—

18 (i) by striking paragraph (2);

19 (ii) in paragraph (3), by striking

20 ‘‘subsection (e)’’ and inserting ‘‘subsection

21 (b)’’; and

22 (iii) by redesignating paragraphs (3)

23 and (4) as paragraphs (2) and (3), respec24 tively; and

25 (B) in subsection (b)(2)—
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1 (i) by striking subparagraph (A); and

2 (ii) by redesignating subparagraphs

3 (B) through (F) as subparagraphs (A)

4 through (E), respectively.

5 (4) Section 1628(b) of the Food, Agriculture,

6 Conservation, and Trade Act of 1990 (7 U.S.C.

7 5831(b)) is amended by striking ‘‘Advisory Council,

8 the Soil Conservation Service,’’ and inserting ‘‘Natu9 ral Resources Conservation Service’’.

10 SEC. 834. NATIONAL GENETICS RESOURCES PROGRAM.

11 (a) FUNCTIONS.—Section 1632(d) of the Food, Agri12 culture, Conservation, and Trade Act of 1990 (7 U.S.C.

13 5841(d)) is amended by striking paragraph (4) and insert14 ing the following:

15 ‘‘(4) unless otherwise prohibited by law, have the

16 right to make available on request, without charge

17 and without regard to the country from which the re18 quest originates, the genetic material that the pro19 gram assembles;’’.

20 (b) AUTHORIZATION OF APPROPRIATIONS.—Section

21 1635(b) of the Food, Agriculture, Conservation, and Trade

22 Act of 1990 (7 U.S.C. 5844(b)) is amended by striking

23 ‘‘1995’’ and inserting ‘‘2002’’.
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1 SEC. 835. NATIONAL AGRICULTURAL WEATHER INFORMA2 TION SYSTEM.

3 Section 1641(c) of the Food, Agriculture, Conservation,

4 and Trade Act of 1990 (7 U.S.C. 5855(c)) is amended by

5 striking ‘‘1995’’ and inserting ‘‘2002’’.

6 SEC. 836. RESEARCH REGARDING PRODUCTION, PREPARA7 TION, PROCESSING, HANDLING, AND STOR8 AGE OF AGRICULTURAL PRODUCTS.

9 Subtitle E of title XVI of the Food, Agriculture, Con10 servation, and Trade Act of 1990 (7 U.S.C. 5871 et seq.)

11 is repealed.

12 SEC. 837. PLANT AND ANIMAL PEST AND DISEASE CONTROL

13 PROGRAM.

14 (a) IN GENERAL.—Subtitle F of title XVI of the Food,

15 Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C.

16 5881) is repealed.

17 (b) CONFORMING AMENDMENTS.—

18 (1) Section 28(b)(2)(A) of the Federal Insecti19 cide, Fungicide, and Rodenticide Act (7 U.S.C.

20 136w–3(b)(2)(A)) is amended by striking ‘‘and the in21 formation required by section 1651 of the Food, Agri22 culture, Conservation, and Trade Act of 1990’’.

23 (2) Section 1627(a)(3) of the Food, Agriculture,

24 Conservation, and Trade Act of 1990 (7 U.S.C.

25 5821(a)(3)) is amended by striking ‘‘and section

26 1650’’.
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1 (3) Section 1628 of the Food, Agriculture, Con2 servation, and Trade Act of 1990 (7 U.S.C. 5831) is

3 amended by striking ‘‘section 1650,’’ each place it ap4 pears in subsections (a) and (d).

5 (4) Section 1629 of the Food, Agriculture, Con6 servation, and Trade Act of 1990 (7 U.S.C. 5832) is

7 amended by striking ‘‘section 1650,’’ each place it ap8 pears in subsections (f) and (g)(11).

9 SEC. 838. LIVESTOCK PRODUCT SAFETY AND INSPECTION

10 PROGRAM.

11 Section 1670(e) of the Food, Agriculture, Conservation,

12 and Trade Act of 1990 (7 U.S.C. 5923(e)) is amended by

13 striking ‘‘1995’’ and inserting ‘‘2002’’.

14 SEC. 839. PLANT GENOME MAPPING PROGRAM.

15 Section 1671 of the Food, Agriculture, Conservation,

16 and Trade Act of 1990 (7 U.S.C. 5924) is repealed.

17 SEC. 840. SPECIALIZED RESEARCH PROGRAMS.

18 Section 1672 of the Food, Agriculture, Conservation,

19 and Trade Act of 1990 (7 U.S.C. 5925) is repealed.

20 SEC. 841. AGRICULTURAL TELECOMMUNICATIONS PRO21 GRAM.

22 Section 1673(h) of the Food, Agriculture, Conserva23 tion, and Trade Act of 1990 (7 U.S.C. 5926(h)) is amended

24 by striking ‘‘1995’’ and inserting ‘‘2002’’.
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1 SEC. 842. NATIONAL CENTERS FOR AGRICULTURAL PROD2 UCT QUALITY RESEARCH.

3 Section 1675(g)(1) of the Food, Agriculture, Conserva4 tion, and Trade Act of 1990 (7 U.S.C. 5928(g)(1)) is

5 amended by striking ‘‘1995’’ and inserting ‘‘2002’’.

6 SEC. 843. TURKEY RESEARCH CENTER AUTHORIZATION.

7 Section 1676 of the Food, Agriculture, Conservation,

8 and Trade Act of 1990 (7 U.S.C. 5929) is repealed.

9 SEC. 844. SPECIAL GRANT TO STUDY CONSTRAINTS ON AG10 RICULTURAL TRADE.

11 Section 1678 of the Food, Agriculture, Conservation,

12 and Trade Act of 1990 (7 U.S.C. 5931) is repealed.

13 SEC. 845. PILOT PROJECT TO COORDINATE FOOD AND NU14 TRITION EDUCATION PROGRAMS.

15 Section 1679 of the Food, Agriculture, Conservation,

16 and Trade Act of 1990 (7 U.S.C. 5932) is repealed.

17 SEC. 846. ASSISTIVE TECHNOLOGY PROGRAM FOR FARMERS

18 WITH DISABILITIES.

19 Section 1680 of the Food, Agriculture, Conservation,

20 and Trade Act of 1990 (7 U.S.C. 5933) is amended—

21 (1) in subsection (a)(6)(B), by striking ‘‘1996’’

22 and inserting ‘‘2002’’; and

23 (2) in subsection (b)(2), by striking ‘‘1996’’ and

24 inserting ‘‘2002’’.
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1 SEC. 847. DEMONSTRATION PROJECTS.

2 Section 2348 of the Food, Agriculture, Conservation,

3 and Trade Act of 1990 (7 U.S.C. 2662a) is repealed.

4 SEC. 848. NATIONAL RURAL INFORMATION CENTER CLEAR5 INGHOUSE.

6 Section 2381(e) of the Food, Agriculture, Conservation,

7 and Trade Act of 1990 (7 U.S.C. 3125b(e)) is amended by

8 striking ‘‘1995’’ and inserting ‘‘2002’’.

9 SEC. 849. GLOBAL CLIMATE CHANGE.

10 (a) TECHNICAL ADVISORY COMMITTEE.—Section 2404

11 of the Food, Agriculture, Conservation, and Trade Act of

12 1990 (7 U.S.C. 6703) is repealed.

13 (b) AUTHORIZATION OF APPROPRIATIONS.—Section

14 2412 of the Food, Agriculture, Conservation, and Trade Act

15 of 1990 (7 U.S.C. 6710) is amended by striking ‘‘1996’’ and

16 inserting ‘‘2002’’.

17 SEC. 850. TECHNICAL AMENDMENTS.

18 The table of contents of the Food, Agriculture, Con19 servation, and Trade Act of 1990 (Public Law 101–624;

20 104 Stat. 3359) is amended by striking the items relating

21 to subtitle G of title XIV, section 1499A, subtitles E and

22 F of title XVI, and sections 1671, 1672, 1676, 1678, 1679,

23 2348, and 2404.
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1 Subtitle C—Miscellaneous Research

2 Provisions

3 SEC. 861. CRITICAL AGRICULTURAL MATERIALS RESEARCH.

4 (a) IN GENERAL.—Section 4 of the Critical Agricul5 tural Materials Act (7 U.S.C. 178b) is amended—

6 (1) by striking subsection (g); and

7 (2) by redesignating subsection (h) as subsection

8 (g).

9 (b) AUTHORIZATION OF APPROPRIATIONS.—Section

10 16(a) of the Critical Agricultural Materials Act (7 U.S.C.

11 178n(a)) is amended by striking ‘‘1995’’ and inserting

12 ‘‘2002’’.

13 SEC. 862. 1994 INSTITUTIONS.

14 (a) LAND-GRANT STATUS.—The first sentence of sec15 tion 533(b) of the Equity in Educational Land-Grant Sta16 tus Act of 1994 (Public Law 103–382; 7 U.S.C. 301 note)

17 is amended by striking ‘‘2000’’ and inserting ‘‘2002’’.

18 (b) INSTITUTIONAL CAPACITY BUILDING GRANTS.—

19 Section 535 of the Equity in Educational Land-Grant Sta20 tus Act of 1994 (Public Law 103–382; 7 U.S.C. 301 note)

21 is amended by striking ‘‘2000’’ each place it appears in

22 subsections (b)(1) and (c) and inserting ‘‘2002’’.
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1 SEC. 863. SMITH-LEVER ACT FUNDING FOR 1890 LAND2 GRANT COLLEGES, INCLUDING TUSKEGEE

3 UNIVERSITY AND THE DISTRICT OF COLUM4 BIA.

5 (a) ELIGIBILITY FOR FUNDS.—Section 3(d) of the Act

6 of May 8, 1914 (commonly known as the ‘‘Smith-Lever

7 Act’’) (38 Stat. 373, chapter 79; 7 U.S.C. 343(d)), is

8 amended by adding at the end the following: ‘‘A college or

9 university eligible to receive funds under the Act of August

10 30, 1890 (26 Stat. 417, chapter 841; 7 U.S.C. 321 et seq.),

11 including Tuskegee University, or section 208 of the District

12 of Columbia Public Postsecondary Education Reorganiza13 tion Act (Public Law 93–471; 88 Stat. 1428) may apply

14 for and receive directly from the Secretary of Agriculture—

15 ‘‘(1) amounts made available under this sub16 section after September 30, 1995, to carry out pro17 grams or initiatives for which no funds were made

18 available under this subsection for fiscal year 1995, or

19 any previous fiscal year, as determined by the Sec20 retary; and

21 ‘‘(2) amounts made available after September 30,

22 1995, to carry out programs or initiatives funded

23 under this subsection prior to that date that are in

24 excess of the highest amount made available for the

25 programs or initiatives under this subsection for fis-
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1 cal year 1995, or any previous fiscal year, as deter2 mined by the Secretary.’’.

3 (b) CONFORMING AMENDMENTS.—

4 (1) The third sentence of section 1444(a) of the

5 National Agricultural Research, Extension, and

6 Teaching Policy Act of 1977 (7 U.S.C. 3221(a)) is

7 amended by inserting before the period at the end the

8 following: ‘‘, except that for the purpose of this cal9 culation, the total appropriations shall not include

10 amounts made available after September 30, 1995,

11 under section 3(d) of the Act of May 8, 1914 (com12 monly known as the ‘Smith-Lever Act’) (38 Stat. 373,

13 chapter 79; 7 U.S.C. 343(d)), to carry out programs

14 or initiatives for which no funds were made available

15 under section 3(d) of the Act for fiscal year 1995, or

16 any previous fiscal year, as determined by the Sec17 retary, and shall not include amounts made available

18 after September 30, 1995, to carry out programs or

19 initiatives funded under section 3(d) of the Act prior

20 to that date that are in excess of the highest amount

21 made available for the programs or initiatives for fis22 cal year 1995, or any previous fiscal year, as deter23 mined by the Secretary.’’.

24 (2) Section 208(c) of the District of Columbia

25 Public Postsecondary Education Reorganization Act
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1 (Public Law 93–471; 88 Stat. 1428) is amended by

2 adding at the end the following: ‘‘Funds appropriated

3 under this subsection shall be in addition to any

4 amounts provided to the District of Columbia from—

5 ‘‘(1) amounts made available after September 30,

6 1995, under section 3(d) of the Act to carry out pro7 grams or initiatives for which no funds were made

8 available under section 3(d) of the Act for fiscal year

9 1995, or any previous fiscal year, as determined by

10 the Secretary of Agriculture; and

11 ‘‘(2) amounts made available after September 30,

12 1995, to carry out programs or initiatives funded

13 under section 3(d) of the Act prior to the date that

14 are in excess of the highest amount made available for

15 the programs or initiatives for fiscal year 1995, or

16 any previous fiscal year, as determined by the Sec17 retary of Agriculture.’’.

18 SEC. 864. COMMITTEE OF NINE.

19 Section 3(c)(3) of the Act of March 2, 1887 (Chapter

20 314; 7 U.S.C. 361c(c)(3)) is amended by striking from ‘‘,

21 and shall be used’’ through the end of the paragraph and

22 inserting a period.

23 SEC. 865. AGRICULTURAL RESEARCH FACILITIES.

24 (a) IN GENERAL.—
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1 (1) RESEARCH FACILITIES.—The Research Fa2 cilities Act (7 U.S.C. 390 et seq.) is amended to read

3 as follows:

4 ‘‘SECTION 1. SHORT TITLE.

5 ‘‘This Act may be cited as the ‘Research Facilities Act’.

6 ‘‘SEC. 2. DEFINITIONS.

7 ‘‘In this Act:

8 ‘‘(1) AGRICULTURAL RESEARCH FACILITY.—The

9 term ‘agricultural research facility’ means a proposed

10 facility for research in food and agricultural sciences

11 for which Federal funds are requested by a college,

12 university, or nonprofit institution to assist in the

13 construction, alteration, acquisition, modernization,

14 renovation, or remodeling of the facility.

15 ‘‘(2) FOOD AND AGRICULTURAL SCIENCES.—The

16 term ‘food and agricultural sciences’ means—

17 ‘‘(A) agriculture, including soil and water

18 conservation and use, the use of organic mate19 rials to improve soil tilth and fertility, plant

20 and animal production and protection, and

21 plant and animal health;

22 ‘‘(B) the processing, distributing, market23 ing, and utilization of food and agricultural

24 products;
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1 ‘‘(C) forestry, including range management,

2 production of forest and range products. multiple

3 use of forest and rangelands, and urban forestry;

4 ‘‘(D) aquaculture (as defined in section

5 1404(3) of the National Agricultural Research,

6 Extension, and Teaching Policy Act of 1977 (7

7 U.S.C. 3103(3));

8 ‘‘(E) human nutrition;

9 ‘‘(F) production inputs, such as energy, to

10 improve productivity; and

11 ‘‘(G) germ plasm collection and preserva12 tion.

13 ‘‘(3) SECRETARY.—The term ‘Secretary’ means

14 the Secretary of Agriculture.

15 ‘‘SEC. 3. REVIEW PROCESS.

16 ‘‘(a) SUBMISSION TO SECRETARY.—Each proposal for

17 an agricultural research facility shall be submitted to the

18 Secretary for review. The Secretary shall review the propos19 als in the order in which the proposals are received.

20 ‘‘(b) APPLICATION PROCESS.—In consultation with

21 the Committee on Appropriations of the Senate and Com22 mittee on Appropriations of the House of Representatives,

23 the Secretary shall establish an application process for the

24 submission of proposals for agricultural research facilities.

25 ‘‘(c) CRITERIA FOR APPROVAL.—
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1 ‘‘(1) DETERMINATION BY SECRETARY.—With re2 spect to each proposal for an agricultural research fa3 cility submitted under subsection (a), the Secretary

4 shall determine whether the proposal meets the cri5 teria set forth in paragraph (2).

6 ‘‘(2) CRITERIA.—A proposal for an agricultural

7 research facility shall meet the following criteria:

8 ‘‘(A) NON-FEDERAL SHARE.—The proposal

9 shall certify the availability of at least a 50 per10 cent non-Federal share of the cost of the facility.

11 The non-Federal share shall be paid in cash and

12 may include funding from private sources or

13 from units of State or local government.

14 ‘‘(B) NONDUPLICATION OF FACILITIES.—

15 The proposal shall demonstrate how the agricul16 tural research facility would be complementary

17 to, and not duplicative of, facilities of colleges,

18 universities, and nonprofit institutions, and fa19 cilities of the Agricultural Research Service,

20 within the State and region.

21 ‘‘(C) NATIONAL RESEARCH PRIORITIES.—

22 The proposal shall demonstrate how the agricul23 tural research facility would serve—

24 ‘‘(i) 1 or more of the national research

25 policies and priorities set forth in section
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1 1402 of the National Agricultural Research,

2 Extension, and Teaching Policy Act of 1977

3 (7 U.S.C. 3101); and

4 ‘‘(ii) regional needs.

5 ‘‘(D) LONG-TERM SUPPORT.—The proposal

6 shall demonstrate that the recipient college, uni7 versity, or nonprofit institution has the ability

8 and commitment to support the long-term, ongo9 ing operating costs of—

10 ‘‘(i) the agricultural research facility

11 after the facility is completed; and

12 ‘‘(ii) each program to be based at the

13 facility.

14 ‘‘(E) STRATEGIC PLAN.—After the develop15 ment of the strategic plan required by section 4,

16 the proposal shall demonstrate how the agricul17 tural research facility reflects the strategic plan

18 for Federal research facilities.

19 ‘‘(d) EVALUATION OF PROPOSALS.—Not later than 90

20 days after receiving a proposal under subsection (a), the

21 Secretary shall—

22 ‘‘(1) evaluate and assess the merits of the pro23 posal, including the extent to which the proposal

24 meets the criteria set forth in subsection (c); and
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1 ‘‘(2) report to the Committee on Appropriations

2 of the Senate and Committee on Appropriations of the

3 House of Representatives on the results of the evalua4 tion and assessment.

5 ‘‘SEC. 4. STRATEGIC PLAN FOR FEDERAL RESEARCH FACILI6 TIES.

7 ‘‘(a) IN GENERAL.—Not later than September 30,

8 1997, the Secretary shall develop a comprehensive plan for

9 the development, construction, modernization, consolida10 tion, and closure of federally supported agricultural re11 search facilities.

12 ‘‘(b) FACTORS.—In developing the plan, the Secretary

13 shall consider—

14 ‘‘(1) the need to increase agricultural productiv15 ity and to enhance the competitiveness of the United

16 States agriculture and food industry as set forth in

17 section 1402 of the National Agricultural Research,

18 Extension, and Teaching Policy Act of 1977 (7 U.S.C.

19 3101); and

20 ‘‘(2) the findings of the National Academy of

21 Sciences with respect to programmatic and scientific

22 priorities relating to agriculture.

23 ‘‘(c) IMPLEMENTATION.—The plan shall be developed

24 for implementation over the 10-fiscal year period beginning

25 with fiscal year 1998.
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1 ‘‘SEC. 5. APPLICABILITY OF FEDERAL ADVISORY COMMIT2 TEE ACT.

3 ‘‘The Federal Advisory Committee Act (5 U.S.C. App)

4 and title XVIII of the Food and Agriculture Act of 1977

5 (7 U.S.C. 2281 et. seq) shall not apply to a panel or board

6 created solely for the purpose of reviewing applications or

7 proposals submitted under this Act.

8 ‘‘SEC. 6. AUTHORIZATION OF APPROPRIATIONS.

9 ‘‘(a) IN GENERAL.—Subject to subsection (b), there are

10 authorized to be appropriated such sums as are necessary

11 for fiscal years 1996 through 2002 for the study, plan, de12 sign, structure, and related costs of agricultural research

13 facilities under this Act.

14 ‘‘(b) ALLOWABLE ADMINISTRATIVE COSTS.—Not more

15 than 3 percent of the funds made available for any project

16 for an agricultural research facility shall be available for

17 administration of the project.’’.

18 (2) APPLICATION.—

19 (A) CURRENT PROJECTS.—The amendment

20 made by paragraph (1), other than section 4 of

21 the Research Facilities Act (as amended by para22 graph (1)), shall not apply to any project for an

23 agricultural research facility for which funds

24 have been made available for a feasibility study

25 or for any phase of the project prior to October

26 1, 1995.
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1 (B) STRATEGIC PLAN.—The strategic plan

2 required by section 4 of the Act shall apply to

3 all federally supported agricultural research fa4 cilities, including projects funded prior to the ef5 fective date of this title.

6 (b) AUTHORIZATION OF APPROPRIATIONS FOR FED7 ERAL FACILITIES.—Section 1431 of the National Agricul8 tural Research, Extension, and Teaching Policy Act

9 Amendments of 1985 (Public Law 99–198; 99 Stat. 1556)

10 is amended—

11 (1) in subsection (a)—

12 (A) by striking ‘‘(a)’’; and

13 (B) by striking ‘‘1995’’ and inserting

14 ‘‘2002’’; and

15 (2) by striking subsection (b).

16 (c) CONFORMING AMENDMENT.—Section 1463(a) of

17 the National Agricultural Research, Extension, and Teach18 ing Policy Act of 1977 (7 U.S.C. 3311(a)) is amended by

19 striking ‘‘1416,’’.

20 SEC. 866. NATIONAL COMPETITIVE RESEARCH INITIATIVE.

21 Subsection (b)(10) of the Competitive, Special, and

22 Facilities Research Grant Act (7 U.S.C. 450i(b)(10)) is

23 amended—
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1 (1) by striking ‘‘OF APPROPRIATIONS.—There’’

2 and inserting the following: ‘‘AND AVAILABILITY OF

3 APPROPRIATIONS.—

4 ‘‘(A) IN GENERAL.—There’’;

5 (2) by striking ‘‘fiscal year 1995’’ and inserting

6 ‘‘each of fiscal years 1995 through 2002’’;

7 (3) by striking ‘‘(A) not’’ and inserting the fol8 lowing:

9 ‘‘(i) not’’;

10 (4) by striking ‘‘(B) not’’ and inserting the fol11 lowing:

12 ‘‘(ii) not’’;

13 (5) in clause (ii) (as so designated), by striking

14 ‘‘20 percent’’ and inserting ‘‘40 percent’’;

15 (6) by striking ‘‘(C) not’’ and inserting the fol16 lowing:

17 ‘‘(iii) not’’;

18 (7) by striking ‘‘(D) not’’ and inserting the fol19 lowing:

20 ‘‘(iv) not’’;

21 (8) by striking ‘‘(E) not’’ and inserting the fol22 lowing:

23 ‘‘(v) not’’; and

24 (9) by adding at the end the following:
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1 ‘‘(B) AVAILABILITY.—Funds made available

2 under subparagraph (A) shall be available for

3 obligation for a period of 2 years from the begin4 ning of the fiscal year for which the funds are

5 made available.’’.

6 SEC. 867. COTTON CROP REPORTS.

7 The Act of May 3, 1924 (43 Stat. 115, chapter 149;

8 7 U.S.C. 475), is repealed.

9 SEC. 868. RURAL DEVELOPMENT RESEARCH AND EDU10 CATION.

11 Section 502 of the Rural Development Act of 1972 (7

12 U.S.C. 2662) is amended—

13 (1) in subsection (a), by inserting after the first

14 sentence the following: ‘‘The rural development exten15 sion programs shall also promote coordinated and in16 tegrated rural community initiatives that advance

17 and empower capacity building through leadership

18 development, entrepreneurship, business development

19 and management training and strategic planning to

20 increase jobs, income, and quality of life in rural

21 communities.’’;

22 (2) by striking subsections (g) and (j); and

23 (3) by redesignating subsections (h) and (i) as

24 subsections (g) and (h) respectively.
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1 SEC. 869. HUMAN NUTRITION RESEARCH.

2 Section 1452 of the National Agricultural Research,

3 Extension, and Teaching Policy Act Amendments of 1985

4 (Public Law 99–198; 7 U.S.C. 3173 note) is repealed.

5 SEC. 870. DAIRY GOAT RESEARCH PROGRAM.

6 Section 1432 of the National Agricultural Research,

7 Extension, and Teaching Policy Act Amendments of 1981

8 (Public Law 97–98; 7 U.S.C. 3222 note) is amended—

9 (1) in subsection (a), by striking ‘‘(a)’’; and

10 (2) by striking subsection (b).

11 SEC. 871. GRANTS TO UPGRADE 1890 LAND-GRANT COLLEGE

12 EXTENSION FACILITIES.

13 (a) IN GENERAL.—Section 1416 of the Food Security

14 Act of 1985 (7 U.S.C. 3224) is repealed.

15 (b) TECHNICAL AMENDMENT.—The table of contents of

16 the Food Security Act of 1985 (Public Law 99–198; 99 Stat.

17 1354) is amended by striking the item relating to section

18 1416.

19 SEC. 872. STUTTGART NATIONAL AQUACULTURE RESEARCH

20 CENTER.

21 (a) TRANSFER OF FUNCTIONS TO THE SECRETARY OF

22 AGRICULTURE.—

23 (1) TITLE OF PUBLIC LAW 85–342.—The title of

24 Public Law 85–342 (16 U.S.C. 778 et seq.) is amend25 ed by striking ‘‘Secretary of the Interior’’ and insert26 ing ‘‘Secretary of Agriculture’’.
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1 (2) AUTHORIZATION.—The first section of Public

2 Law 85–342 (16 U.S.C. 778) is amended—

3 (A) by striking ‘‘Secretary of the Interior’’

4 and all that follows through ‘‘directed to’’ and

5 inserting ‘‘Secretary of Agriculture shall’’;

6 (B) by striking ‘‘station and stations’’ and

7 inserting ‘‘1 or more centers’’; and

8 (C) in paragraph (5), by striking ‘‘Depart9 ment of Agriculture’’ and inserting ‘‘Secretary of

10 the Interior’’.

11 (3) AUTHORITY.—Section 2 of Public Law 85–

12 342 (16 U.S.C. 778a) is amended by striking ‘‘, the

13 Secretary’’ and all that follows through ‘‘authorized’’

14 and inserting ‘‘, the Secretary of Agriculture is au15 thorized’’.

16 (4) ASSISTANCE.—Section 3 of Public Law 85–

17 342 (16 U.S.C. 778b) is amended—

18 (A) by striking ‘‘Secretary of the Interior’’

19 and inserting ‘‘Secretary of Agriculture’’; and

20 (B) by striking ‘‘Department of Agri21 culture’’ and inserting ‘‘Secretary of the Inte22 rior’’.

23 (b) TRANSFER OF FISH FARMING EXPERIMENTAL

24 LABORATORY TO DEPARTMENT OF AGRICULTURE.—
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1 (1) DESIGNATION OF STUTTGART NATIONAL

2 AQUACULTURE RESEARCH CENTER.—

3 (A) IN GENERAL.—The Fish Farming Ex4 perimental Laboratory in Stuttgart, Arkansas

5 (including the facilities in Kelso, Arkansas),

6 shall be known and designated as the ‘‘Stuttgart

7 National Aquaculture Research Center’’.

8 (B) REFERENCES.—Any reference in a law,

9 map, regulation, document, paper, or other

10 record of the United States to the laboratory re11 ferred to in subparagraph (A) shall be deemed to

12 be a reference to the ‘‘Stuttgart National Aqua13 culture Research Center’’.

14 (2) TRANSFER OF LABORATORY TO THE DEPART15 MENT OF AGRICULTURE.—Subject to section 1531 of

16 title 31, United States Code, not later than 90 days

17 after the effective date of this title, there are trans18 ferred to the Department of Agriculture—

19 (A) the personnel employed in connection

20 with the laboratory referred to in paragraph (1);

21 (B) the assets, liabilities, contracts, and real

22 and personal property of the laboratory;

23 (C) the records of the laboratory; and

24 (D) the unexpended balance of appropria25 tions, authorizations, allocations and other funds
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1 employed, held, arising from, available to, or to

2 be made available in connection with the labora3 tory.

4 (3) NONDUPLICATION.—The research center re5 ferred to in paragraph (1)(A) shall be complementary

6 to, and not duplicative of, facilities of colleges, univer7 sities, and nonprofit institutions, and facilities of the

8 Agricultural Research Service, within the State and

9 region, as determined by the Administrator of the

10 Service.

11 SEC. 873. NATIONAL AQUACULTURE POLICY, PLANNING,

12 AND DEVELOPMENT.

13 (a) DEFINITIONS.—Section 3 of the National Aqua14 culture Act of 1980 (16 U.S.C. 2802) is amended—

15 (1) in paragraph (1), by striking ‘‘the propaga16 tion’’ and all that follows through the period at the

17 end and inserting the following: ‘‘the commercially

18 controlled cultivation of aquatic plants, animals, and

19 microorganisms, but does not include private for-prof20 it ocean ranching of Pacific salmon in a State in

21 which the ranching is prohibited by law.’’;

22 (2) in paragraph (3), by striking ‘‘or aquatic

23 plant’’ and inserting ‘‘aquatic plant, or microorga24 nism’’;
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1 (3) by redesignating paragraphs (7) through (9)

2 as paragraphs (8) through (10), respectively; and

3 (4) by inserting after paragraph (6) the follow4 ing:

5 ‘‘(7) The term ‘private aquaculture’ means the

6 commercially controlled cultivation of aquatic plants,

7 animals, and microorganisms other than cultivation

8 carried out by the Federal Government, any State or

9 local government, or an Indian tribe recognized by

10 the Bureau of Indian Affairs.’’.

11 (b) NATIONAL AQUACULTURE DEVELOPMENT PLAN.—

12 Section 4 of the National Aquaculture Act of 1980 (16

13 U.S.C. 2803) is amended—

14 (1) in subsection (c)—

15 (A) in subparagraph (A), by adding ‘‘and’’

16 at the end;

17 (B) in subparagraph (B), by striking ‘‘;

18 and’’ and inserting a period; and

19 (C) by striking subparagraph (C);

20 (2) in the second sentence of subsection (d), by

21 striking ‘‘Secretaries determine that’’ and inserting

22 ‘‘Secretary, in consultation with the Secretary of

23 Commerce, the Secretary of the Interior, and the

24 heads of such other agencies as the Secretary deter25 mines are appropriate, determines that’’; and
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1 (3) in subsection (e), by striking ‘‘Secretaries’’

2 and inserting ‘‘Secretary, in consultation with the

3 Secretary of Commerce, the Secretary of the Interior,

4 and the heads of such other agencies as the Secretary

5 determines are appropriate,’’.

6 (c) FUNCTIONS AND POWERS OF SECRETARIES.—Sec7 tion 5(b)(3) of the National Aquaculture Act of 1980 (16

8 U.S.C. 2804(b)(3)) is amended by striking ‘‘Secretaries

9 deem’’ and inserting ‘‘Secretary, in consultation with the

10 Secretary of Commerce, the Secretary of the Interior, and

11 the heads of such other agencies as the Secretary determines

12 are appropriate, consider’’.

13 (d) COORDINATION OF NATIONAL ACTIVITIES REGARD14 ING AQUACULTURE.—The first sentence of section 6(a) of

15 the National Aquaculture Act of 1980 (16 U.S.C. 2805(a))

16 is amended by striking ‘‘(f)’’ and inserting ‘‘(e)’’.

17 (e) NATIONAL POLICY FOR PRIVATE AQUACULTURE.—

18 The National Aquaculture Act of 1980 (16 U.S.C. 2801 et

19 seq.) is amended—

20 (1) by redesignating sections 7, 8, 9, 10, and 11

21 as sections 8, 9, 10, 11, and 12, respectively; and

22 (2) by inserting after section 6 (16 U.S.C. 2805)

23 the following:
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1 ‘‘SEC. 7. NATIONAL POLICY FOR PRIVATE AQUACULTURE.

2 ‘‘(a) IN GENERAL.—In consultation with the Secretary

3 of Commerce and the Secretary of the Interior, the Sec4 retary shall coordinate and implement a national policy

5 for private aquaculture in accordance with this section. In

6 developing the policy, the Secretary may consult with other

7 agencies and organizations.

8 ‘‘(b) DEPARTMENT OF AGRICULTURE AQUACULTURE

9 PLAN.—

10 ‘‘(1) IN GENERAL.—The Secretary shall develop

11 and implement a Department of Agriculture Aqua12 culture Plan (referred to in this section as the ‘De13 partment plan’) for a unified aquaculture program of

14 the Department of Agriculture (referred to in this sec15 tion as the ‘Department’) to support the development

16 of private aquaculture.

17 ‘‘(2) ELEMENTS OF DEPARTMENT PLAN.—The

18 Department plan shall address—

19 ‘‘(A) programs of individual agencies of the

20 Department related to aquaculture that are con21 sistent with Department programs related to

22 other areas of agriculture, including livestock,

23 crops, products, and commodities under the ju24 risdiction of agencies of the Department;
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1 ‘‘(B) the treatment of cultivated aquatic

2 animals as livestock and cultivated aquatic

3 plants as agricultural crops; and

4 ‘‘(C) means for effective coordination and

5 implementation of aquaculture activities and

6 programs within the Department, including in7 dividual agency commitments of personnel and

8 resources.

9 ‘‘(c) NATIONAL AQUACULTURE INFORMATION CEN10 TER.—In carrying out section 5, the Secretary may main11 tain and support a National Aquaculture Information Cen12 ter at the National Agricultural Library as a repository

13 for information on national and international aquaculture.

14 ‘‘(d) TREATMENT OF AQUACULTURE.—The Secretary

15 shall treat—

16 ‘‘(1) private aquaculture as agriculture; and

17 ‘‘(2) commercially cultivated aquatic animals,

18 plants, and microorganisms, and products of the ani19 mals, plants, and microorganisms, produced by pri20 vate persons and transported or moved in standard

21 commodity channels as agricultural livestock, crops,

22 and commodities.

23 ‘‘(e) PRIVATE AQUACULTURE POLICY COORDINATION,

24 DEVELOPMENT, AND IMPLEMENTATION.—
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1 ‘‘(1) RESPONSIBILITY.—The Secretary shall have

2 responsibility for coordinating, developing, and carry3 ing out policies and programs for private aqua4 culture.

5 ‘‘(2) DUTIES.—The Secretary shall—

6 ‘‘(A) coordinate all intradepartmental func7 tions and activities relating to private aqua8 culture; and

9 ‘‘(B) establish procedures for the coordina10 tion of functions, and consultation with, the co11 ordinating group.

12 ‘‘(f) LIAISON WITH DEPARTMENTS OF COMMERCE AND

13 THE INTERIOR.—The Secretary of Commerce and the Sec14 retary of the Interior shall each designate an officer or em15 ployee of the Department of the Secretary to be the liaison

16 of the Department to the Secretary of Agriculture.’’.

17 (f) AUTHORIZATION OF APPROPRIATIONS.—Section 11

18 of the National Aquaculture Act of 1980 (as redesignated

19 by subsection (e)(1)) is amended by striking ‘‘the fiscal

20 years 1991, 1992, and 1993’’ each place it appears and in21 serting ‘‘fiscal years 1991 through 2002’’.

22 SEC. 874. EXPANSION OF AUTHORITIES RELATED TO THE

23 NATIONAL ARBORETUM.

24 (a) SOLICITATION OF GIFTS, BENEFITS, AND DE25 VISES.—The first sentence of section 5 of the Act of March
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1 4, 1927 (89 Stat. 683; 20 U.S.C. 195), is amended by insert2 ing ‘‘solicit,’’ after ‘‘authorized to’’.

3 (b) CONCESSIONS, FEES, AND VOLUNTARY SERV4 ICES.—The Act of March 4, 1927 (44 Stat. 1422, chapter

5 505; 20 U.S.C. 191 et seq.), is amended by adding at the

6 end the following:

7 ‘‘SEC. 6. CONCESSIONS, FEES, AND VOLUNTARY SERVICES.

8 ‘‘(a) IN GENERAL.—Notwithstanding the Federal

9 Property and Administrative Services Act of 1949 (40

10 U.S.C. 471 et seq.) and section 321 of the Act of June 30,

11 1932 (47 Stat. 412, chapter 314; 40 U.S.C. 303b), the Sec12 retary of Agriculture, in furtherance of the mission of the

13 National Arboretum, may—

14 ‘‘(1) negotiate agreements granting concessions

15 at the National Arboretum to nonprofit scientific or

16 educational organizations the interests of which are

17 complementary to the mission of the National Arbore18 tum, except that the net proceeds of the organizations

19 from the concessions shall be used exclusively for re20 search and educational work for the benefit of the Na21 tional Arboretum;

22 ‘‘(2) provide by concession, on such terms as the

23 Secretary of Agriculture considers appropriate and

24 necessary, for commercial services for food, drink, and

25 nursery sales, if an agreement for a permanent con-
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1 cession under this paragraph is negotiated with a

2 qualified person submitting a proposal after due con3 sideration of all proposals received after the Secretary

4 of Agriculture provides reasonable public notice of the

5 intent of the Secretary to enter into such an agree6 ment;

7 ‘‘(3) dispose of excess property, including excess

8 plants and fish, in a manner designed to maximize

9 revenue from any sale of the property, including by

10 way of public auction, except that this paragraph

11 shall not apply to the free dissemination of new vari12 eties of seeds and germ plasm in accordance with sec13 tion 520 of the Revised Statutes (commonly known as

14 the ‘Department of Agriculture Organic Act of 1862’)

15 (7 U.S.C. 2201);

16 ‘‘(4) charge such fees as the Secretary of Agri17 culture considers reasonable for temporary use by in18 dividuals or groups of National Arboretum facilities

19 and grounds for any purpose consistent with the mis20 sion of the National Arboretum;

21 ‘‘(5) charge such fees as the Secretary of Agri22 culture considers reasonable for the use of the Na23 tional Arboretum for commercial photography or

24 cinematography;
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1 ‘‘(6) publish, in print and electronically and

2 without regard to laws relating to printing by the

3 Federal Government, informational brochures, books,

4 and other publications concerning the National Arbo5 retum or the collections of the Arboretum; and

6 ‘‘(7) license use of the National Arboretum name

7 and logo for public service or commercial uses.

8 ‘‘(b) USE OF FUNDS.—Any funds received or collected

9 by the Secretary of Agriculture as a result of activities de10 scribed in subsection (a) shall be retained in a special fund

11 in the Treasury for the use and benefit of the National Arbo12 retum as the Secretary of Agriculture considers appro13 priate.

14 ‘‘(c) ACCEPTANCE OF VOLUNTARY SERVICES.—The

15 Secretary of Agriculture may accept the voluntary services

16 of organizations described in subsection (a)(1), and the vol17 untary services of individuals (including employees of the

18 National Arboretum), for the benefit of the National Arbore19 tum.’’.

20 SEC. 875. STUDY OF AGRICULTURAL RESEARCH SERVICE.

21 (a) STUDY.—The Secretary of Agriculture shall request

22 the National Academy of Sciences to conduct a study of the

23 role and mission of the Agricultural Research Service. The

24 study shall—
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1 (1) evaluate the strength of science of the Service

2 and the relevance of the science to national priorities;

3 (2) examine how the work of the Service relates

4 to the capacity of the United States agricultural re5 search, education, and extension system overall; and

6 (3) include recommendations, as appropriate.

7 (b) REPORT.—Not later than 18 months after the effec8 tive date of this title, the Secretary shall prepare a report

9 that describes the results of the study conducted under sub10 section (a) and submit the report to the Committee on Agri11 culture of the House of Representatives and the Committee

12 on Agriculture, Nutrition, and Forestry of the Senate.

13 (c) FUNDING.—The Secretary shall use to carry out

14 this section not more than $500,000 of funds made available

15 to the Agricultural Research Service for research.

16 SEC. 876. LABELING OF DOMESTIC AND IMPORTED LAMB

17 AND MUTTON.

18 Section 7 of the Federal Meat Inspection Act (21

19 U.S.C. 607) is amended by adding at the end the following:

20 ‘‘(f) LAMB AND MUTTON.—

21 ‘‘(1) STANDARDS.—The Secretary, consistent

22 with United States international obligations, shall es23 tablish standards for the labeling of sheep carcasses,

24 parts of carcasses, meat, and meat food products as

25 ‘lamb’ or ‘mutton’.
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1 ‘‘(2) METHOD.—The standards under paragraph

2 (1) shall be based on the use of the break or spool

3 joint method to differentiate lamb from mutton by the

4 degree of calcification of bone to reflect maturity.’’.

5 SEC. 877. SENSE OF SENATE.

6 It is the sense of the Senate that the Department of

7 Agriculture should continue to make methyl bromide alter8 native research and extension activities a high priority of

9 the Department: Provided, That it is the sense of the Senate

10 that the Department of Agriculture, the Environmental

11 Protection Agency, producer and processor organizations,

12 environmental organizations, and State agencies continue

13 their dialogue on the risks and benefits of extending the

14 2001 phaseout deadline.

15 TITLE IX—AGRICULTURAL

16 PROMOTION

17 Subtitle A—Popcorn

18 SEC. 901. SHORT TITLE.

19 This subtitle may be cited as the ‘‘Popcorn Promotion,

20 Research, and Consumer Information Act’’.

21 SEC. 902. FINDINGS AND DECLARATION OF POLICY.

22 (a) FINDINGS.—Congress finds that—

23 (1) popcorn is an important food that is a valu24 able part of the human diet;
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1 (2) the production and processing of popcorn

2 plays a significant role in the economy of the United

3 States in that popcorn is processed by several popcorn

4 processors, distributed through wholesale and retail

5 outlets, and consumed by millions of people through6 out the United States and foreign countries;

7 (3) popcorn must be of high quality, readily

8 available, handled properly, and marketed efficiently

9 to ensure that the benefits of popcorn are available to

10 the people of the United States;

11 (4) the maintenance and expansion of existing

12 markets and uses and the development of new markets

13 and uses for popcorn are vital to the welfare of proc14 essors and persons concerned with marketing, using,

15 and producing popcorn for the market, as well as to

16 the agricultural economy of the United States;

17 (5) the cooperative development, financing, and

18 implementation of a coordinated program of popcorn

19 promotion, research, consumer information, and in20 dustry information is necessary to maintain and ex21 pand markets for popcorn; and

22 (6) popcorn moves in interstate and foreign com23 merce, and popcorn that does not move in those chan24 nels of commerce directly burdens or affects interstate

25 commerce in popcorn.
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1 (b) POLICY.—It is the policy of Congress that it is in

2 the public interest to authorize the establishment, through

3 the exercise of the powers provided in this subtitle, of an

4 orderly procedure for developing, financing (through ade5 quate assessments on unpopped popcorn processed domesti6 cally), and carrying out an effective, continuous, and co7 ordinated program of promotion, research, consumer infor8 mation, and industry information designed to—

9 (1) strengthen the position of the popcorn indus10 try in the marketplace; and

11 (2) maintain and expand domestic and foreign

12 markets and uses for popcorn.

13 (c) PURPOSES.—The purposes of this subtitle are to—

14 (1) maintain and expand the markets for all

15 popcorn products in a manner that—

16 (A) is not designed to maintain or expand

17 any individual share of a producer or processor

18 of the market;

19 (B) does not compete with or replace indi20 vidual advertising or promotion efforts designed

21 to promote individual brand name or trade

22 name popcorn products; and

23 (C) authorizes and funds programs that re24 sult in government speech promoting government

25 objectives; and
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1 (2) establish a nationally coordinated program

2 for popcorn promotion, research, consumer informa3 tion, and industry information.

4 (d) STATUTORY CONSTRUCTION.—This subtitle treats

5 processors equitably. Nothing in this subtitle—

6 (1) provides for the imposition of a trade barrier

7 to the entry into the United States of imported pop8 corn for the domestic market; or

9 (2) provides for the control of production or oth10 erwise limits the right of any individual processor to

11 produce popcorn.

12 SEC. 903. DEFINITIONS.

13 In this subtitle (except as otherwise specifically pro14 vided):

15 (1) BOARD.—The term ‘‘Board’’ means the Pop16 corn Board established under section 905(b).

17 (2) COMMERCE.—The term ‘‘commerce’’ means

18 interstate, foreign, or intrastate commerce.

19 (3) CONSUMER INFORMATION.—The term

20 ‘‘consumer information’’ means information and pro21 grams that will assist consumers and other persons in

22 making evaluations and decisions regarding the pur23 chase, preparation, and use of popcorn.

24 (4) DEPARTMENT.—The term ‘‘Department’’

25 means the Department of Agriculture.
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1 (5) INDUSTRY INFORMATION.—The term ‘‘indus2 try information’’ means information and programs

3 that will lead to the development of—

4 (A) new markets, new marketing strategies,

5 or increased efficiency for the popcorn industry;

6 or

7 (B) activities to enhance the image of the

8 popcorn industry.

9 (6) MARKETING.—The term ‘‘marketing’’ means

10 the sale or other disposition of unpopped popcorn for

11 human consumption in a channel of commerce, but

12 does not include a sale or disposition to or between

13 processors.

14 (7) ORDER.—The term ‘‘order’’ means an order

15 issued under section 904.

16 (8) PERSON.—The term ‘‘person’’ means an in17 dividual, group of individuals, partnership, corpora18 tion, association, or cooperative, or any other legal

19 entity.

20 (9) POPCORN.—The term ‘‘popcorn’’ means

21 unpopped popcorn (Zea Mays L) that is—

22 (A) commercially grown;

23 (B) processed in the United States by shell24 ing, cleaning, or drying; and

25 (C) introduced into a channel of commerce.
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1 (10) PROCESS.—The term ‘‘process’’ means to

2 shell, clean, dry, and prepare popcorn for the market,

3 but does not include packaging popcorn for the mar4 ket without also engaging in another activity de5 scribed in this paragraph.

6 (11) PROCESSOR.—The term ‘‘processor’’ means

7 a person engaged in the preparation of unpopped

8 popcorn for the market who owns or shares the owner9 ship and risk of loss of the popcorn and who processes

10 and distributes over 4,000,000 pounds of popcorn in

11 the market per year.

12 (12) PROMOTION.—The term ‘‘promotion’’ means

13 an action, including paid advertising, to enhance the

14 image or desirability of popcorn.

15 (13) RESEARCH.—The term ‘‘research’’ means

16 any type of study to advance the image, desirability,

17 marketability, production, product development, qual18 ity, or nutritional value of popcorn.

19 (14) SECRETARY.—The term ‘‘Secretary’’ means

20 the Secretary of Agriculture.

21 (15) STATE.—The term ‘‘State’’ means each of

22 the 50 States and the District of Columbia.

23 (16) UNITED STATES.—The term ‘‘United

24 States’’ means all of the States.
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1 SEC. 904. ISSUANCE OF ORDERS.

2 (a) IN GENERAL.—To effectuate the policy described

3 in section 902(b), the Secretary, subject to subsection (b),

4 shall issue 1 or more orders applicable to processors. An

5 order shall be applicable to all popcorn production and

6 marketing areas in the United States. Not more than 1

7 order shall be in effect under this subtitle at any 1 time.

8 (b) PROCEDURE.—

9 (1) PROPOSAL OR REQUEST FOR ISSUANCE.—

10 The Secretary may propose the issuance of an order,

11 or an association of processors or any other person

12 that would be affected by an order may request the is13 suance of, and submit a proposal for, an order.

14 (2) NOTICE AND COMMENT CONCERNING PRO15 POSED ORDER.—Not later than 60 days after the re16 ceipt of a request and proposal for an order under

17 paragraph (1), or at such time as the Secretary deter18 mines to propose an order, the Secretary shall publish

19 a proposed order and give due notice and opportunity

20 for public comment on the proposed order.

21 (3) ISSUANCE OF ORDER.—After notice and op22 portunity for public comment under paragraph (2),

23 the Secretary shall issue an order, taking into consid24 eration the comments received and including in the

25 order such provisions as are necessary to ensure that

26 the order conforms to this subtitle. The order shall be
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1 issued and become effective not later than 150 days

2 after the date of publication of the proposed order.

3 (c) AMENDMENTS.—The Secretary, as appropriate,

4 may amend an order. The provisions of this subtitle appli5 cable to an order shall be applicable to any amendment to

6 an order, except that an amendment to an order may not

7 require a referendum to become effective.

8 SEC. 905. REQUIRED TERMS IN ORDERS.

9 (a) IN GENERAL.—An order shall contain the terms

10 and conditions specified in this section.

11 (b) ESTABLISHMENT AND MEMBERSHIP OF POPCORN

12 BOARD.—

13 (1) IN GENERAL.—The order shall provide for

14 the establishment of, and appointment of members to,

15 a Popcorn Board that shall consist of not fewer than

16 4 members and not more than 9 members.

17 (2) NOMINATIONS.—The members of the Board

18 shall be processors appointed by the Secretary from

19 nominations submitted by processors in a manner au20 thorized by the Secretary, subject to paragraph (3).

21 Not more than 1 member may be appointed to the

22 Board from nominations submitted by any 1 proc23 essor.

24 (3) GEOGRAPHICAL DIVERSITY.—In making ap25 pointments, the Secretary shall take into account, to
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1 the extent practicable, the geographical distribution of

2 popcorn production throughout the United States.

3 (4) TERMS.—The term of appointment of each

4 member of the Board shall be 3 years, except that the

5 members appointed to the initial Board shall serve,

6 proportionately, for terms of 2, 3, and 4 years, as de7 termined by the Secretary.

8 (5) COMPENSATION AND EXPENSES.—A member

9 of the Board shall serve without compensation, but

10 shall be reimbursed for the expenses of the member in11 curred in the performance of duties for the Board.

12 (c) POWERS AND DUTIES OF BOARD.—The order shall

13 define the powers and duties of the Board, which shall in14 clude the power and duty—

15 (1) to administer the order in accordance with

16 the terms and provisions of the order;

17 (2) to make regulations to effectuate the terms

18 and provisions of the order;

19 (3) to appoint members of the Board to serve on

20 an executive committee;

21 (4) to propose, receive, evaluate, and approve

22 budgets, plans, and projects of promotion, research,

23 consumer information, and industry information,

24 and to contract with appropriate persons to imple25 ment the plans or projects;
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1 (5) to accept and receive voluntary contributions,

2 gifts, and market promotion or similar funds;

3 (6) to invest, pending disbursement under a plan

4 or project, funds collected through assessments author5 ized under subsection (f), only in—

6 (A) obligations of the United States or an

7 agency of the United States;

8 (B) general obligations of a State or a polit9 ical subdivision of a State;

10 (C) an interest-bearing account or certifi11 cate of deposit of a bank that is a member of the

12 Federal Reserve System; or

13 (D) obligations fully guaranteed as to prin14 cipal and interest by the United States;

15 (7) to receive, investigate, and report to the Sec16 retary complaints of violations of the order; and

17 (8) to recommend to the Secretary amendments

18 to the order.

19 (d) PLANS AND BUDGETS.—

20 (1) IN GENERAL.—The order shall provide that

21 the Board shall submit to the Secretary for approval

22 any plan or project of promotion, research, consumer

23 information, or industry information.

24 (2) BUDGETS.—The order shall require the

25 Board to submit to the Secretary for approval budgets
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1 on a fiscal year basis of the anticipated expenses and

2 disbursements of the Board in the implementation of

3 the order, including projected costs of plans and

4 projects of promotion, research, consumer informa5 tion, and industry information.

6 (e) CONTRACTS AND AGREEMENTS.—

7 (1) IN GENERAL.—The order shall provide that

8 the Board may enter into contracts or agreements for

9 the implementation and carrying out of plans or

10 projects of promotion, research, consumer informa11 tion, or industry information, including contracts

12 with a processor organization, and for the payment of

13 the cost of the plans or projects with funds collected

14 by the Board under the order.

15 (2) REQUIREMENTS.—A contract or agreement

16 under paragraph (1) shall provide that—

17 (A) the contracting party shall develop and

18 submit to the Board a plan or project, together

19 with a budget that shows the estimated costs to

20 be incurred for the plan or project;

21 (B) the plan or project shall become effective

22 on the approval of the Secretary; and

23 (C) the contracting party shall keep accu24 rate records of each transaction of the party, ac25 count for funds received and expended, make
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1 periodic reports to the Board of activities con2 ducted, and make such other reports as the

3 Board or the Secretary may require.

4 (3) PROCESSOR ORGANIZATIONS.—The order

5 shall provide that the Board may contract with proc6 essor organizations for any other services. The con7 tract shall include provisions comparable to the provi8 sions required by paragraph (2).

9 (f) ASSESSMENTS.—

10 (1) PROCESSORS.—The order shall provide that

11 each processor marketing popcorn in the United

12 States or for export shall, in the manner prescribed

13 in the order, pay assessments and remit the assess14 ments to the Board.

15 (2) DIRECT MARKETERS.—A processor that mar16 kets popcorn produced by the processor directly to

17 consumers shall pay and remit the assessments on the

18 popcorn directly to the Board in the manner pre19 scribed in the order.

20 (3) RATE.—

21 (A) IN GENERAL.—The rate of assessment

22 prescribed in the order shall be a rate established

23 by the Board but not more than $.08 per hun24 dredweight of popcorn.
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1 (B) ADJUSTMENT OF RATE.—The order

2 shall provide that the Board, with the approval

3 of the Secretary, may raise or lower the rate of

4 assessment annually up to a maximum of $.08

5 per hundredweight of popcorn.

6 (4) USE OF ASSESSMENTS.—

7 (A) IN GENERAL.—Subject to subpara8 graphs (B) and (C) and subsection (c)(5), the

9 order shall provide that the assessments collected

10 shall be used by the Board—

11 (i) to pay expenses incurred in imple12 menting and administering the order, with

13 provision for a reasonable reserve; and

14 (ii) to cover such administrative costs

15 as are incurred by the Secretary, except

16 that the administrative costs incurred by

17 the Secretary (other than any legal expenses

18 incurred to defend and enforce the order)

19 that may be reimbursed by the Board may

20 not exceed 15 percent of the projected an21 nual revenues of the Board.

22 (B) EXPENDITURES BASED ON SOURCE OF

23 ASSESSMENTS.—In implementing plans and

24 projects of promotion, research, consumer infor-
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1 mation, and industry information, the Board

2 shall expend funds on—

3 (i) plans and projects for popcorn

4 marketed in the United States or Canada

5 in proportion to the amount of assessments

6 collected on domestically marketed popcorn;

7 and

8 (ii) plans and projects for exported

9 popcorn in proportion to the amount of as10 sessments collected on exported popcorn.

11 (C) NOTIFICATION.—If the administrative

12 costs incurred by the Secretary that are reim13 bursed by the Board exceed 10 percent of the pro14 jected annual revenues of the Board, the Sec15 retary shall notify as soon as practicable the

16 Committee on Agriculture of the House of Rep17 resentatives and the Committee on Agriculture,

18 Nutrition, and Forestry of the Senate.

19 (g) PROHIBITION ON USE OF FUNDS.—The order shall

20 prohibit any funds collected by the Board under the order

21 from being used to influence government action or policy,

22 other than the use of funds by the Board for the development

23 and recommendation to the Secretary of amendments to the

24 order.
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1 (h) BOOKS AND RECORDS OF THE BOARD.—The order

2 shall require the Board to—

3 (1) maintain such books and records (which shall

4 be available to the Secretary for inspection and audit)

5 as the Secretary may prescribe;

6 (2) prepare and submit to the Secretary, from

7 time to time, such reports as the Secretary may pre8 scribe; and

9 (3) account for the receipt and disbursement of

10 all funds entrusted to the Board.

11 (i) BOOKS AND RECORDS OF PROCESSORS.—

12 (1) MAINTENANCE AND REPORTING OF INFORMA13 TION.—The order shall require that each processor of

14 popcorn for the market shall—

15 (A) maintain, and make available for in16 spection, such books and records as are required

17 by the order; and

18 (B) file reports at such time, in such man19 ner, and having such content as is prescribed in

20 the order.

21 (2) USE OF INFORMATION.—The Secretary shall

22 authorize the use of information regarding processors

23 that may be accumulated under a law or regulation

24 other than this subtitle or a regulation issued under

25 this subtitle. The information shall be made available
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1 to the Secretary as appropriate for the administra2 tion or enforcement of this subtitle, the order, or any

3 regulation issued under this subtitle.

4 (3) CONFIDENTIALITY.—

5 (A) IN GENERAL.—Subject to subpara6 graphs (B), (C), and (D), all information ob7 tained by the Secretary under paragraphs (1)

8 and (2) shall be kept confidential by all officers,

9 employees, and agents of the Board and the De10 partment.

11 (B) DISCLOSURE BY SECRETARY.—Informa12 tion referred to in subparagraph (A) may be dis13 closed if—

14 (i) the Secretary considers the informa15 tion relevant;

16 (ii) the information is revealed in a

17 suit or administrative hearing brought at

18 the request of the Secretary, or to which the

19 Secretary or any officer of the United States

20 is a party; and

21 (iii) the information relates to the

22 order.

23 (C) DISCLOSURE TO OTHER AGENCY OF

24 FEDERAL GOVERNMENT.—
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1 (i) IN GENERAL.—No information ob2 tained under the authority of this subtitle

3 may be made available to another agency or

4 officer of the Federal Government for any

5 purpose other than the implementation of

6 this subtitle and any investigatory or en7 forcement activity necessary for the imple8 mentation of this subtitle.

9 (ii) PENALTY.—A person who know10 ingly violates this subparagraph shall, on

11 conviction, be subject to a fine of not more

12 than $1,000 or to imprisonment for not

13 more than 1 year, or both, and if an officer,

14 employee, or agent of the Board or the De15 partment, shall be removed from office or

16 terminated from employment, as applicable.

17 (D) GENERAL STATEMENTS.—Nothing in

18 this paragraph prohibits—

19 (i) the issuance of general statements,

20 based on the reports, of the number of per21 sons subject to the order or statistical data

22 collected from the reports, if the statements

23 do not identify the information provided by

24 any person; or
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1 (ii) the publication, by direction of the

2 Secretary, of the name of a person violating

3 the order, together with a statement of the

4 particular provisions of the order violated

5 by the person.

6 (j) OTHER TERMS AND CONDITIONS.—The order shall

7 contain such terms and conditions, consistent with this sub8 title, as are necessary to effectuate this subtitle, including

9 regulations relating to the assessment of late payment

10 charges.

11 SEC. 906. REFERENDA.

12 (a) INITIAL REFERENDUM.—

13 (1) IN GENERAL.—Within the 60-day period im14 mediately preceding the effective date of an order, as

15 provided in section 904(b)(3), the Secretary shall con16 duct a referendum among processors who, during a

17 representative period as determined by the Secretary,

18 have been engaged in processing, for the purpose of

19 ascertaining whether the order shall go into effect.

20 (2) APPROVAL OF ORDER.—The order shall be21 come effective, as provided in section 904(b), only if

22 the Secretary determines that the order has been ap23 proved by not less than a majority of the processors

24 voting in the referendum and if the majority proc25 essed more than 50 percent of the popcorn certified as
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1 having been processed, during the representative pe2 riod, by the processors voting.

3 (b) ADDITIONAL REFERENDA.—

4 (1) IN GENERAL.—Not earlier than 3 years after

5 the effective date of an order approved under sub6 section (a), on the request of the Board or a represent7 ative group of processors, as described in paragraph

8 (2), the Secretary may conduct additional referenda

9 to determine whether processors favor the termination

10 or suspension of the order.

11 (2) REPRESENTATIVE GROUP OF PROCESSORS.—

12 An additional referendum on an order shall be con13 ducted if the referendum is requested by 30 percent or

14 more of the number of processors who, during a rep15 resentative period as determined by the Secretary,

16 have been engaged in processing.

17 (3) DISAPPROVAL OF ORDER.—If the Secretary

18 determines, in a referendum conducted under para19 graph (1), that suspension or termination of the order

is favored by at least 2 20 ⁄3 of the processors voting in

21 the referendum, the Secretary shall—

22 (A) suspend or terminate, as appropriate,

23 collection of assessments under the order not

24 later than 180 days after the date of determina25 tion; and
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1 (B) suspend or terminate the order, as ap2 propriate, in an orderly manner as soon as

3 practicable after the date of determination.

4 (c) COSTS OF REFERENDUM.—The Secretary shall be

5 reimbursed from assessments collected by the Board for any

6 expenses incurred by the Secretary in connection with the

7 conduct of any referendum under this section.

8 (d) METHOD OF CONDUCTING REFERENDUM.—Subject

9 to this section, a referendum conducted under this section

10 shall be conducted in such manner as is determined by the

11 Secretary.

12 (e) CONFIDENTIALITY OF BALLOTS AND OTHER INFOR13 MATION.—

14 (1) IN GENERAL.—The ballots and other infor15 mation or reports that reveal or tend to reveal the

16 vote of any processor, or any business operation of a

17 processor, shall be considered to be strictly confiden18 tial and shall not be disclosed.

19 (2) PENALTY FOR VIOLATIONS.—An officer or

20 employee of the Department who knowingly violates

21 paragraph (1) shall be subject to the penalties de22 scribed in section 905(i)(3)(C)(ii).

23 SEC. 907. PETITION AND REVIEW.

24 (a) PETITION.—
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1 (1) IN GENERAL.—A person subject to an order

2 may file with the Secretary a petition—

3 (A) stating that the order, a provision of the

4 order, or an obligation imposed in connection

5 with the order is not established in accordance

6 with law; and

7 (B) requesting a modification of the order

8 or obligation or an exemption from the order or

9 obligation.

10 (2) STATUTE OF LIMITATIONS.—A petition under

11 paragraph (1) concerning an obligation may be filed

12 not later than 2 years after the date of imposition of

13 the obligation.

14 (3) HEARINGS.—The petitioner shall be given the

15 opportunity for a hearing on a petition filed under

16 paragraph (1), in accordance with regulations issued

17 by the Secretary.

18 (4) RULING.—After a hearing under paragraph

19 (3), the Secretary shall issue a ruling on the petition

20 that is the subject of the hearing, which shall be final

21 if the ruling is in accordance with applicable law.

22 (b) REVIEW.—

23 (1) COMMENCEMENT OF ACTION.—The district

24 court of the United States for any district in which

25 a person who is a petitioner under subsection (a) re-
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1 sides or carries on business shall have jurisdiction to

2 review a ruling on the petition, if the person files a

3 complaint not later than 20 days after the date of is4 suance of the ruling under subsection (a)(4).

5 (2) PROCESS.—Service of process in a proceed6 ing under paragraph (1) may be made on the Sec7 retary by delivering a copy of the complaint to the

8 Secretary.

9 (3) REMANDS.—If the court determines, under

10 paragraph (1), that a ruling issued under subsection

11 (a)(4) is not in accordance with applicable law, the

12 court shall remand the matter to the Secretary with

13 directions—

14 (A) to make such ruling as the court shall

15 determine to be in accordance with law; or

16 (B) to take such further proceedings as, in

17 the opinion of the court, the law requires.

18 (c) ENFORCEMENT.—The pendency of proceedings in19 stituted under subsection (a) may not impede, hinder, or

20 delay the Secretary or the Attorney General from taking

21 action under section 908.

22 SEC. 908. ENFORCEMENT.

23 (a) IN GENERAL.—The Secretary may issue an en24 forcement order to restrain or prevent any person from vio25 lating an order or regulation issued under this subtitle and
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1 may assess a civil penalty of not more than $1,000 for each

2 violation of the enforcement order, after an opportunity for

3 an administrative hearing, if the Secretary determines that

4 the administration and enforcement of the order and this

5 subtitle would be adequately served by such a procedure.

6 (b) JURISDICTION.—The district courts of the United

7 States are vested with jurisdiction specifically to enforce,

8 and to prevent and restrain any person from violating, an

9 order or regulation issued under this subtitle.

10 (c) 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 SEC. 909. INVESTIGATIONS AND POWER TO SUBPOENA.

14 (a) INVESTIGATIONS.—The Secretary may make such

15 investigations as the Secretary considers necessary—

16 (1) for the effective administration of this sub17 title; and

18 (2) to determine whether any person subject to

19 this subtitle has engaged, or is about to engage, in an

20 act that constitutes or will constitute a violation of

21 this subtitle or of an order or regulation issued under

22 this subtitle.

23 (b) OATHS, AFFIRMATIONS, AND SUBPOENAS.—For the

24 purpose of an investigation under subsection (a), the Sec25 retary may administer oaths and affirmations, subpoena
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1 witnesses, compel the attendance of witnesses, take evidence,

2 and require the production of any records that are relevant

3 to the inquiry. The attendance of witnesses and the produc4 tion of records may be required from any place in the Unit5 ed States.

6 (c) AID OF COURTS.—

7 (1) REQUEST.—In the case of contumacy by, or

8 refusal to obey a subpoena issued to, any person, the

9 Secretary may request the aid of any court of the

10 United States within the jurisdiction of which the in11 vestigation or proceeding is carried on, or where the

12 person resides or carries on business, in requiring the

13 attendance and testimony of the person and the pro14 duction of records.

15 (2) ENFORCEMENT ORDER OF THE COURT.—The

16 court may issue an enforcement order requiring the

17 person to appear before the Secretary to produce

18 records or to give testimony concerning the matter

19 under investigation.

20 (3) CONTEMPT.—A failure to obey an enforce21 ment order of the court under paragraph (2) may be

22 punished by the court as a contempt of the court.

23 (4) PROCESS.—Process in a case under this sub24 section may be served in the judicial district in which
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1 the person resides or conducts business or wherever

2 the person may be found.

3 SEC. 910. RELATION TO OTHER PROGRAMS.

4 Nothing in this subtitle preempts or supersedes any

5 other program relating to popcorn promotion organized and

6 operated under the laws of the United States or any State.

7 SEC. 911. REGULATIONS.

8 The Secretary may issue such regulations as are nec9 essary to carry out this subtitle.

10 SEC. 912. AUTHORIZATION OF APPROPRIATIONS.

11 There are authorized to be appropriated such sums as

12 are necessary to carry out this subtitle. Amounts made

13 available under this section or otherwise made available to

14 the Department, and amounts made available under any

15 other marketing or promotion order, may not be used to

16 pay any administrative expense of the Board.

17 Subtitle B—Canola and Rapeseed

18 SEC. 921. SHORT TITLE.

19 This subtitle may be cited as the ‘‘Canola and

20 Rapeseed Research, Promotion, and Consumer Information

21 Act’’.

22 SEC. 922. FINDINGS AND DECLARATION OF POLICY.

23 (a) FINDINGS.—Congress finds that—

24 (1) canola and rapeseed products are an impor25 tant and nutritious part of the human diet;
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1 (2) the production of canola and rapeseed prod2 ucts plays a significant role in the economy of the

3 United States in that canola and rapeseed products

4 are produced by thousands of canola and rapeseed

5 producers, processed by numerous processing entities,

6 and canola and rapeseed products produced in the

7 United States are consumed by people throughout the

8 United States and foreign countries;

9 (3) canola, rapeseed, and canola and rapeseed

10 products should be readily available and marketed ef11 ficiently to ensure that consumers have an adequate

12 supply of canola and rapeseed products at a reason13 able price;

14 (4) the maintenance and expansion of existing

15 markets and development of new markets for canola,

16 rapeseed, and canola and rapeseed products are vital

17 to the welfare of canola and rapeseed producers and

18 processors and those persons concerned with market19 ing canola, rapeseed, and canola and rapeseed prod20 ucts, as well as to the general economy of the United

21 States, and are necessary to ensure the ready avail22 ability and efficient marketing of canola, rapeseed,

23 and canola and rapeseed products;

24 (5) there exist established State and national or25 ganizations conducting canola and rapeseed research,
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1 promotion, and consumer education programs that

2 are valuable to the efforts of promoting the consump3 tion of canola, rapeseed, and canola and rapeseed

4 products;

5 (6) the cooperative development, financing, and

6 implementation of a coordinated national program of

7 canola and rapeseed research, promotion, consumer

8 information, and industry information is necessary

9 to maintain and expand existing markets and develop

10 new markets for canola, rapeseed, and canola and

11 rapeseed products; and

12 (7) canola, rapeseed, and canola and rapeseed

13 products move in interstate and foreign commerce,

14 and canola, rapeseed, and canola and rapeseed prod15 ucts that do not move in interstate or foreign com16 merce directly burden or affect interstate commerce in

17 canola, rapeseed, and canola and rapeseed products.

18 (b) POLICY.—It is the policy of this subtitle to establish

19 an orderly procedure for developing, financing through as20 sessments on domestically-produced canola and rapeseed,

21 and implementing a program of research, promotion,

22 consumer information, and industry information designed

23 to strengthen the position in the marketplace of the canola

24 and rapeseed industry, to maintain and expand existing

25 domestic and foreign markets and uses for canola, rapeseed,
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1 and canola and rapeseed products, and to develop new mar2 kets and uses for canola, rapeseed, and canola and rapeseed

3 products.

4 (c) CONSTRUCTION.—Nothing in this subtitle provides

5 for the control of production or otherwise limits the right

6 of individual producers to produce canola, rapeseed, or

7 canola or rapeseed products.

8 SEC. 923. DEFINITIONS.

9 In this subtitle (unless the context otherwise requires):

10 (1) BOARD.—The term ‘‘Board’’ means the Na11 tional Canola and Rapeseed Board established under

12 section 925(b).

13 (2) CANOLA; RAPESEED.—The terms ‘‘canola’’

14 and ‘‘rapeseed’’ means any brassica plant grown in

15 the United States for the production of an oilseed, the

16 oil of which is used for a food or nonfood use.

17 (3) CANOLA OR RAPESEED PRODUCTS.—The

18 term ‘‘canola or rapeseed products’’ means products

19 produced, in whole or in part, from canola or

20 rapeseed.

21 (4) COMMERCE.—The term ‘‘commerce’’ includes

22 interstate, foreign, and intrastate commerce.

23 (5) CONFLICT OF INTEREST.—The term ‘‘conflict

24 of interest’’ means a situation in which a member of

25 the Board has a direct or indirect financial interest
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1 in a corporation, partnership, sole proprietorship,

2 joint venture, or other business entity dealing directly

3 or indirectly with the Board.

4 (6) CONSUMER INFORMATION.—The term

5 ‘‘consumer information’’ means information that will

6 assist consumers and other persons in making evalua7 tions and decisions regarding the purchase, prepara8 tion, and use of canola, rapeseed, or canola or

9 rapeseed products.

10 (7) DEPARTMENT.—The term ‘‘Department’’

11 means the Department of Agriculture.

12 (8) FIRST PURCHASER.—The term ‘‘first pur13 chaser’’ means—

14 (A) except as provided in subparagraph

15 (B), a person buying or otherwise acquiring

16 canola, rapeseed, or canola or rapeseed products

17 produced by a producer; or

18 (B) the Commodity Credit Corporation, in

19 a case in which canola or rapeseed is forfeited to

20 the Commodity Credit Corporation as collateral

21 for a loan issued under a price support loan pro22 gram administered by the Commodity Credit

23 Corporation.

24 (9) INDUSTRY INFORMATION.—The term ‘‘indus25 try information’’ means information or programs
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1 that will lead to the development of new markets, new

2 marketing strategies, or increased efficiency for the

3 canola and rapeseed industry, or an activity to en4 hance the image of the canola or rapeseed industry.

5 (10) INDUSTRY MEMBER.—The term ‘‘industry

6 member’’ means a member of the canola and rapeseed

7 industry who represents—

8 (A) manufacturers of canola or rapeseed

9 products; or

10 (B) persons who commercially buy or sell

11 canola or rapeseed.

12 (11) MARKETING.—The term ‘‘marketing’’ means

13 the sale or other disposition of canola, rapeseed, or

14 canola or rapeseed products in a channel of com15 merce.

16 (12) ORDER.—The term ‘‘order’’ means an order

17 issued under section 924.

18 (13) PERSON.—The term ‘‘person’’ means an in19 dividual, partnership, corporation, association, coop20 erative, or any other legal entity.

21 (14) PRODUCER.—The term ‘‘producer’’ means a

22 person engaged in the growing of canola or rapeseed

23 in the United States who owns, or who shares the

24 ownership and risk of loss of, the canola or rapeseed.
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1 (15) PROMOTION.—The term ‘‘promotion’’ means

2 an action, including paid advertising, technical as3 sistance, or trade servicing activity, to enhance the

4 image or desirability of canola, rapeseed, or canola or

5 rapeseed products in domestic and foreign markets, or

6 an activity designed to communicate to consumers,

7 processors, wholesalers, retailers, government officials,

8 or others information relating to the positive at9 tributes of canola, rapeseed, or canola or rapeseed

10 products or the benefits of use or distribution of

11 canola, rapeseed, or canola or rapeseed products.

12 (16) QUALIFIED STATE CANOLA AND RAPESEED

13 BOARD.—The term ‘‘qualified State canola and

14 rapeseed board’’ means a State canola and rapeseed

15 promotion entity that is authorized and functioning

16 under State law.

17 (17) RESEARCH.—The term ‘‘research’’ means

18 any type of test, study, or analysis to advance the

19 image, desirability, marketability, production, prod20 uct development, quality, or functional or nutritional

21 value of canola, rapeseed, or canola or rapeseed prod22 ucts, including research activity designed to identify

23 and analyze barriers to export sales of canola or

24 rapeseed produced in the United States.
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1 (18) SECRETARY.—The term ‘‘Secretary’’ means

2 the Secretary of Agriculture.

3 (19) STATE.—The term ‘‘State’’ means any of

4 the 50 States, the District of Columbia and the Com5 monwealth of Puerto Rico.

6 (20) UNITED STATES.—The term ‘‘United

7 States’’ means collectively the 50 States, the District

8 of Columbia, and the Commonwealth of Puerto Rico.

9 SEC. 924. ISSUANCE AND AMENDMENT OF ORDERS.

10 (a) IN GENERAL.—Subject to subsection (b), the Sec11 retary shall issue 1 or more orders under this subtitle appli12 cable to producers and first purchasers of canola, rapeseed,

13 or canola or rapeseed products. The order shall be national

14 in scope. Not more than 1 order shall be in effect under

15 this subtitle at any 1 time.

16 (b) PROCEDURE.—

17 (1) PROPOSAL OR REQUEST FOR ISSUANCE.—

18 The Secretary may propose the issuance of an order

19 under this subtitle, or an association of canola and

20 rapeseed producers or any other person that would be

21 affected by an order issued pursuant to this subtitle

22 may request the issuance of, and submit a proposal

23 for, an order.

24 (2) NOTICE AND COMMENT CONCERNING PRO25 POSED ORDER.—Not later than 60 days after the re-
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1 ceipt of a request and proposal for an order pursuant

2 to paragraph (1), or whenever the Secretary deter3 mines to propose an order, the Secretary shall publish

4 a proposed order and give due notice and opportunity

5 for public comment on the proposed order.

6 (3) ISSUANCE OF ORDER.—After notice and op7 portunity for public comment are given as provided

8 in paragraph (2), the Secretary shall issue an order,

9 taking into consideration the comments received and

10 including in the order provisions necessary to ensure

11 that the order is in conformity with the requirements

12 of this subtitle. The order shall be issued and become

13 effective not later than 180 days following publication

14 of the proposed order.

15 (c) AMENDMENTS.—The Secretary, from time to time,

16 may amend an order issued under this section.

17 SEC. 925. REQUIRED TERMS IN ORDERS.

18 (a) IN GENERAL.—An order issued under this subtitle

19 shall contain the terms and conditions specified in this sec20 tion.

21 (b) ESTABLISHMENT AND MEMBERSHIP OF THE NA22 TIONAL CANOLA AND RAPESEED BOARD.—

23 (1) IN GENERAL.—The order shall provide for

24 the establishment of, and appointment of members to,
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1 a National Canola and Rapeseed Board to administer

2 the order.

3 (2) SERVICE TO ENTIRE INDUSTRY.—The Board

4 shall carry out programs and projects that will pro5 vide maximum benefit to the canola and rapeseed in6 dustry in all parts of the United States and only pro7 mote canola, rapeseed, or canola or rapeseed products.

8 (3) BOARD MEMBERSHIP.—The Board shall con9 sist of 15 members, including—

10 (A) 11 members who are producers, includ11 ing—

12 (i) 1 member from each of 6 geographic

13 regions comprised of States where canola or

14 rapeseed is produced, as determined by the

15 Secretary; and

16 (ii) 5 members from the geographic re17 gions referred to in clause (i), allocated ac18 cording to the production in each region;

19 and

20 (B) 4 members who are industry members,

21 including at least—

22 (i) 1 member who represents manufac23 turers of canola or rapeseed end products;

24 and
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1 (ii) 1 member who represents persons

2 who commercially buy or sell canola or

3 rapeseed.

4 (4) LIMITATION ON STATE RESIDENCE.—There

5 shall be no more than 4 producer members of the

6 Board from any State.

7 (5) MODIFYING BOARD MEMBERSHIP.—In ac8 cordance with regulations approved by the Secretary,

9 at least once each 3 years and not more than once

10 each 2 years, the Board shall review the geographic

11 distribution of canola and rapeseed production

12 throughout the United States and, if warranted, rec13 ommend to the Secretary that the Secretary—

14 (A) reapportion regions in order to reflect

15 the geographic distribution of canola and

16 rapeseed production; and

17 (B) reapportion the seats on the Board to

18 reflect the production in each region.

19 (6) CERTIFICATION OF ORGANIZATIONS.—

20 (A) IN GENERAL.—The eligibility of any

21 State organization to represent producers shall

22 be certified by the Secretary.

23 (B) CRITERIA.—The Secretary shall certify

24 any State organization that the Secretary deter-
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1 mines has a history of stability and permanency

2 and meets at least 1 of the following criteria:

3 (i) MAJORITY REPRESENTATION.—The

4 total paid membership of the organiza5 tion—

6 (I) is comprised of at least a ma7 jority of canola or rapeseed producers;

8 or

9 (II) represents at least a majority

10 of the canola or rapeseed producers in

11 the State.

12 (ii) SUBSTANTIAL NUMBER OF PRO13 DUCERS REPRESENTED.—The organization

14 represents a substantial number of produc15 ers that produce a substantial quantity of

16 canola or rapeseed in the State.

17 (iii) PURPOSE.—The organization is a

18 general farm or agricultural organization

19 that has as a stated objective the promotion

20 and development of the United States

21 canola or rapeseed industry and the eco22 nomic welfare of United States canola or

23 rapeseed producers.

24 (C) REPORT.—The Secretary shall make a

25 certification under this paragraph on the basis
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1 of a factual report submitted by the State orga2 nization.

3 (7) TERMS OF OFFICE.—

4 (A) IN GENERAL.—The members of the

5 Board shall serve for a term of 3 years, except

6 that the members appointed to the initial Board

7 shall serve, proportionately, for terms of 1, 2,

8 and 3 years, as determined by the Secretary.

9 (B) TERMINATION OF TERMS.—Notwith10 standing subparagraph (C), each member shall

11 continue to serve until a successor is appointed

12 by the Secretary.

13 (C) LIMITATION ON TERMS.—No individual

14 may serve more than 2 consecutive 3-year terms

15 as a member.

16 (8) COMPENSATION.—A member of the Board

17 shall serve without compensation, but shall be reim18 bursed for necessary and reasonable expenses incurred

19 in the performance of duties for and approved by the

20 Board.

21 (c) POWERS AND DUTIES OF THE BOARD.—The order

22 shall define the powers and duties of the Board, which shall

23 include the power and duty—

24 (1) to administer the order in accordance with

25 the terms and conditions of the order;
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1 (2) to make regulations to effectuate the terms

2 and conditions of the order;

3 (3) to meet, organize, and select from among

4 members of the Board a chairperson, other officers,

5 and committees and subcommittees, as the Board de6 termines appropriate;

7 (4) to establish working committees of persons

8 other than Board members;

9 (5) to employ such persons, other than Board

10 members, as the Board considers necessary, and to de11 termine the compensation and define the duties of the

12 persons;

13 (6) to prepare and submit for the approval of the

14 Secretary, when appropriate or necessary, a rec15 ommended rate of assessment under section 926, and

16 a fiscal period budget of the anticipated expenses in

17 the administration of the order, including the prob18 able costs of all programs and projects;

19 (7) to develop programs and projects, subject to

20 subsection (d);

21 (8) to enter into contracts or agreements, subject

22 to subsection (e), to develop and carry out programs

23 or projects of research, promotion, industry informa24 tion, and consumer information;
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1 (9) to carry out research, promotion, industry

2 information, and consumer information projects, and

3 to pay the costs of the projects with assessments col4 lected under section 926;

5 (10) to keep minutes, books, and records that re6 flect the actions and transactions of the Board, and

7 promptly report minutes of each Board meeting to the

8 Secretary;

9 (11) to appoint and convene, from time to time,

10 working committees comprised of producers, industry

11 members, and the public to assist in the development

12 of research, promotion, industry information, and

13 consumer information programs for canola, rapeseed,

14 and canola and rapeseed products;

15 (12) to invest, pending disbursement under a

16 program or project, funds collected through assess17 ments authorized under section 926, or funds earned

18 from investments, only in—

19 (A) obligations of the United States or an

20 agency of the United States;

21 (B) general obligations of a State or a polit22 ical subdivision of a State;

23 (C) an interest-bearing account or certifi24 cate of deposit of a bank that is a member of the

25 Federal Reserve System; or
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1 (D) obligations fully guaranteed as to prin2 cipal and interest by the United States;

3 (13) to receive, investigate, and report to the Sec4 retary complaints of violations of the order;

5 (14) to furnish the Secretary with such informa6 tion as the Secretary may request;

7 (15) to recommend to the Secretary amendments

8 to the order;

9 (16) to develop and recommend to the Secretary

10 for approval such regulations as may be necessary for

11 the development and execution of programs or

12 projects, or as may otherwise be necessary, to carry

13 out the order; and

14 (17) to provide the Secretary with advance no15 tice of meetings.

16 (d) PROGRAMS AND BUDGETS.—

17 (1) SUBMISSION TO SECRETARY.—The order

18 shall provide that the Board shall submit to the Sec19 retary for approval any program or project of re20 search, promotion, consumer information, or industry

21 information. No program or project shall be imple22 mented prior to approval by the Secretary.

23 (2) BUDGETS.—The order shall require the

24 Board, prior to the beginning of each fiscal year, or

25 as may be necessary after the beginning of a fiscal
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1 year, to submit to the Secretary for approval budgets

2 of anticipated expenses and disbursements in the im3 plementation of the order, including projected costs of

4 research, promotion, consumer information, and in5 dustry information programs and projects.

6 (3) INCURRING EXPENSES.—The Board may

7 incur such expenses for programs or projects of re8 search, promotion, consumer information, or industry

9 information, and other expenses for the administra10 tion, maintenance, and functioning of the Board as

11 may be authorized by the Secretary, including any

12 implementation, administrative, and referendum costs

13 incurred by the Department.

14 (4) PAYING EXPENSES.—The funds to cover the

15 expenses referred to in paragraph (3) shall be paid by

16 the Board from assessments collected under section

17 926 or funds borrowed pursuant to paragraph (5).

18 (5) AUTHORITY TO BORROW.—To meet the ex19 penses referred to in paragraph (3), the Board shall

20 have the authority to borrow funds, as approved by

21 the Secretary, for capital outlays and startup costs.

22 (e) CONTRACTS AND AGREEMENTS.—

23 (1) IN GENERAL.—To ensure efficient use of

24 funds, the order shall provide that the Board may

25 enter into a contract or agreement for the implemen-
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1 tation and carrying out of a program or project of

2 canola, rapeseed, or canola or rapeseed products re3 search, promotion, consumer information, or industry

4 information, including a contract with a producer or5 ganization, and for the payment of the costs with

6 funds received by the Board under the order.

7 (2) REQUIREMENTS.—A contract or agreement

8 under paragraph (1) shall provide that—

9 (A) the contracting party shall develop and

10 submit to the Board a program or project to11 gether with a budget that shall show the esti12 mated costs to be incurred for the program or

13 project;

14 (B) the program or project shall become ef15 fective on the approval of the Secretary; and

16 (C) the contracting party shall keep accu17 rate records of all transactions, account for funds

18 received and expended, make periodic reports to

19 the Board of activities conducted, and make such

20 other reports as the Board or the Secretary may

21 require.

22 (3) PRODUCER ORGANIZATIONS.—The order shall

23 provide that the Board may contract with producer

24 organizations for any other services. The contract
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1 shall include provisions comparable to those required

2 by paragraph (2).

3 (f) BOOKS AND RECORDS OF THE BOARD.—

4 (1) IN GENERAL.—The order shall require the

5 Board to—

6 (A) maintain such books and records (which

7 shall be available to the Secretary for inspection

8 and audit) as the Secretary may prescribe;

9 (B) prepare and submit to the Secretary,

10 from time to time, such reports as the Secretary

11 may prescribe; and

12 (C) account for the receipt and disburse13 ment of all funds entrusted to the Board.

14 (2) AUDITS.—The Board shall cause the books

15 and records of the Board to be audited by an inde16 pendent auditor at the end of each fiscal year, and

17 a report of the audit to be submitted to the Secretary.

18 (g) PROHIBITION.—

19 (1) IN GENERAL.—Subject to paragraph (2), the

20 Board shall not engage in any action to, nor shall

21 any funds received by the Board under this subtitle

22 be used to—

23 (A) influence legislation or governmental

24 action;
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1 (B) engage in an action that would be a

2 conflict of interest;

3 (C) engage in advertising that is false or

4 misleading; or

5 (D) engage in promotion that would dispar6 age other commodities.

7 (2) ACTION PERMITTED.—Paragraph (1) does

8 not preclude—

9 (A) the development and recommendation of

10 amendments to the order;

11 (B) the communication to appropriate gov12 ernment officials of information relating to the

13 conduct, implementation, or results of pro14 motion, research, consumer information, or in15 dustry information activities under the order; or

16 (C) any action designed to market canola or

17 rapeseed products directly to a foreign govern18 ment or political subdivision of a foreign govern19 ment.

20 (h) BOOKS AND RECORDS.—

21 (1) IN GENERAL.—The order shall require that

22 each producer, first purchaser, or industry member

23 shall—
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1 (A) maintain and submit to the Board any

2 reports considered necessary by the Secretary to

3 ensure compliance with this subtitle; and

4 (B) make available during normal business

5 hours, for inspection by employees of the Board

6 or Secretary, such books and records as are nec7 essary to carry out this subtitle, including such

8 records as are necessary to verify any required

9 reports.

10 (2) CONFIDENTIALITY.—

11 (A) IN GENERAL.—Except as otherwise pro12 vided in this subtitle, all information obtained

13 from books, records, or reports required to be

14 maintained under paragraph (1) shall be kept

15 confidential, and shall not be disclosed to the

16 public by any person.

17 (B) DISCLOSURE.—Information referred to

18 in subparagraph (A) may be disclosed to the

19 public if—

20 (i) the Secretary considers the informa21 tion relevant;

22 (ii) the information is revealed in a

23 suit or administrative hearing brought at

24 the direction or on the request of the Sec-
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1 retary or to which the Secretary or any offi2 cer of the Department is a party; and

3 (iii) the information relates to this

4 subtitle.

5 (C) MISCONDUCT.—A knowing disclosure of

6 confidential information in violation of subpara7 graph (A) by an officer or employee of the Board

8 or Department, except as required by other law

9 or allowed under subparagraph (B) or (D), shall

10 be considered a violation of this subtitle.

11 (D) GENERAL STATEMENTS.—Nothing in

12 this paragraph prohibits—

13 (i) the issuance of general statements,

14 based on the reports, of the number of per15 sons subject to the order or statistical data

16 collected from the reports, if the statements

17 do not identify the information furnished

18 by any person; or

19 (ii) the publication, by direction of the

20 Secretary, of the name of a person violating

21 the order, together with a statement of the

22 particular provisions of the order violated

23 by the person.

24 (3) AVAILABILITY OF INFORMATION.—
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1 (A) EXCEPTION.—Except as provided in

2 this subtitle, information obtained under this

3 subtitle may be made available to another agen4 cy of the Federal Government for a civil or

5 criminal law enforcement activity if the activity

6 is authorized by law and if the head of the agen7 cy has made a written request to the Secretary

8 specifying the particular information desired

9 and the law enforcement activity for which the

10 information is sought.

11 (B) PENALTY.—Any person knowingly vio12 lating this subsection, on conviction, shall be

13 subject to a fine of not more than $1,000 or to

14 imprisonment for not more than 1 year, or both,

15 and if an officer or employee of the Board or the

16 Department, shall be removed from office or ter17 minated from employment, as applicable.

18 (5) WITHHOLDING INFORMATION.—Nothing in

19 this subtitle authorizes withholding information from

20 Congress.

21 (i) USE OF ASSESSMENTS.—The order shall provide

22 that the assessments collected under section 926 shall be

23 used for payment of the expenses in implementing and ad24 ministering this subtitle, with provision for a reasonable

25 reserve, and to cover those administrative costs incurred by
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1 the Secretary in implementing and administering this sub2 title.

3 (j) OTHER TERMS AND CONDITIONS.—The order also

4 shall contain such terms and conditions, not inconsistent

5 with this subtitle, as determined necessary by the Secretary

6 to effectuate this subtitle.

7 SEC. 926. ASSESSMENTS.

8 (a) IN GENERAL.—

9 (1) FIRST PURCHASERS.—During the effective

10 period of an order issued pursuant to this subtitle, as11 sessments shall be—

12 (A) levied on all canola or rapeseed pro13 duced in the United States and marketed; and

14 (B) deducted from the payment made to a

15 producer for all canola or rapeseed sold to a first

16 purchaser.

17 (2) DIRECT PROCESSING.—The order shall pro18 vide that any person processing canola or rapeseed of

19 that person’s own production and marketing the

20 canola or rapeseed, or canola or rapeseed products,

21 shall remit to the Board or a qualified State canola

22 and rapeseed board, in the manner prescribed by the

23 order, an assessment established at a rate equivalent

24 to the rate provided for under subsection (d).
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1 (b) LIMITATION ON ASSESSMENTS.—No more than 1

2 assessment may be assessed under subsection (a) on any

3 canola or rapeseed produced (as remitted by a first pur4 chaser).

5 (c) REMITTING ASSESSMENTS.—

6 (1) IN GENERAL.—Assessments required under

7 subsection (a) shall be remitted to the Board by a

8 first purchaser. The Board shall use qualified State

9 canola and rapeseed boards to collect the assessments.

10 If an appropriate qualified State canola and rapeseed

11 board does not exist to collect an assessment, the as12 sessment shall be collected by the Board. There shall

13 be only 1 qualified State canola or rapeseed Board in

14 each State.

15 (2) TIMES TO REMIT ASSESSMENT.—Each first

16 purchaser shall remit the assessment to the Board as

17 provided for in the order.

18 (d) ASSESSMENT RATE.—

19 (1) INITIAL RATE.—The initial assessment rate

20 shall be 4 cents per hundredweight of canola or

21 rapeseed produced and marketed.

22 (2) INCREASE.—The assessment rate may be in23 creased on recommendation by the Board to a rate

24 not exceeding 10 cents per hundredweight of canola or

25 rapeseed produced and marketed in a State, unless—
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1 (A) after the initial referendum is held

2 under section 927(a), the Board recommends an

3 increase above 10 cents per hundredweight; and

4 (B) the increase is approved in a referen5 dum under section 927(b).

6 (3) CREDIT.—A producer who demonstrates to

7 the Board that the producer is participating in a pro8 gram of an established qualified State canola and

9 rapeseed board shall receive credit, in determining the

10 assessment due from the producer, for contributions to

11 the program of up to 2 cents per hundredweight of

12 canola or rapeseed marketed.

13 (e) LATE PAYMENT CHARGE.—

14 (1) IN GENERAL.—There shall be a late payment

15 charge imposed on any person who fails to remit, on

16 or before the date provided for in the order, to the

17 Board the total amount for which the person is liable.

18 (2) AMOUNT OF CHARGE.—The amount of the

19 late payment charge imposed under paragraph (1)

20 shall be prescribed by the Board with the approval of

21 the Secretary.

22 (f) REFUND OF ASSESSMENTS FROM ESCROW AC23 COUNT.—

24 (1) ESTABLISHMENT OF ESCROW ACCOUNT.—

25 During the period beginning on the date on which an
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1 order is first issued under section 924(b)(3) and end2 ing on the date on which a referendum is conducted

3 under section 927(a), the Board shall—

4 (A) establish an escrow account to be used

5 for assessment refunds; and

6 (B) place funds in such account in accord7 ance with paragraph (2).

8 (2) PLACEMENT OF FUNDS IN ACCOUNT.—The

9 Board shall place in such account, from assessments

10 collected during the period referred to in paragraph

11 (1), an amount equal to the product obtained by mul12 tiplying the total amount of assessments collected dur13 ing the period by 10 percent.

14 (3) RIGHT TO RECEIVE REFUND.—The Board

15 shall refund to a producer the assessments paid by or

16 on behalf of the producer if—

17 (A) the producer is required to pay the as18 sessment;

19 (B) the producer does not support the pro20 gram established under this subtitle; and

21 (C) the producer demands the refund prior

22 to the conduct of the referendum under section

23 927(a).

24 (4) FORM OF DEMAND.—The demand shall be

25 made in accordance with such regulations, in such
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1 form, and within such time period as prescribed by

2 the Board.

3 (5) MAKING OF REFUND.—The refund shall be

4 made on submission of proof satisfactory to the Board

5 that the producer paid the assessment for which the

6 refund is demanded.

7 (6) PRORATION.—If—

8 (A) the amount in the escrow account re9 quired by paragraph (1) is not sufficient to re10 fund the total amount of assessments demanded

11 by eligible producers; and

12 (B) the order is not approved pursuant to

13 the referendum conducted under section 927(a);

14 the Board shall prorate the amount of the refunds

15 among all eligible producers who demand a refund.

16 (7) PROGRAM APPROVED.—If the plan is ap17 proved pursuant to the referendum conducted under

18 section 927(a), all funds in the escrow account shall

19 be returned to the Board for use by the Board in ac20 cordance with this subtitle.

21 SEC. 927. REFERENDA.

22 (a) INITIAL REFERENDUM.—

23 (1) REQUIREMENT.—During the period ending

24 30 months after the date of the first issuance of an

25 order under section 924, the Secretary shall conduct
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1 a referendum among producers who, during a rep2 resentative period as determined by the Secretary,

3 have been engaged in the production of canola or

4 rapeseed for the purpose of ascertaining whether the

5 order then in effect shall be continued.

6 (2) ADVANCE NOTICE.—The Secretary shall, to

7 the extent practicable, provide broad public notice in

8 advance of any referendum. The notice shall be pro9 vided, without advertising expenses, by means of

10 newspapers, county newsletters, the electronic media,

11 and press releases, through the use of notices posted

12 in State and county Cooperative State Research,

13 Education, and Extension Service offices and county

14 Consolidated Farm Service Agency offices, and by

15 other appropriate means specified in the order. The

16 notice shall include information on when the referen17 dum will be held, registration and voting require18 ments, rules regarding absentee voting, and other per19 tinent information.

20 (3) APPROVAL OF ORDER.—The order shall be

21 continued only if the Secretary determines that the

22 order has been approved by not less than a majority

23 of the producers voting in the referendum.

24 (4) DISAPPROVAL OF ORDER.—If continuation of

25 the order is not approved by a majority of those vot-
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1 ing in the referendum, the Secretary shall terminate

2 collection of assessments under the order within 6

3 months after the referendum and shall terminate the

4 order in an orderly manner as soon as practicable.

5 (b) ADDITIONAL REFERENDA.—

6 (1) IN GENERAL.—

7 (A) REQUIREMENT.—After the initial ref8 erendum on an order, the Secretary shall conduct

9 additional referenda, as described in subpara10 graph (C), if requested by a representative group

11 of producers, as described in subparagraph (B).

12 (B) REPRESENTATIVE GROUP OF PRODUC13 ERS.—An additional referendum on an order

14 shall be conducted if requested by 10 percent or

15 more of the producers who during a representa16 tive period have been engaged in the production

17 of canola or rapeseed.

18 (C) ELIGIBLE PRODUCERS.—Each addi19 tional referendum shall be conducted among all

20 producers who, during a representative period,

21 as determined by the Secretary, have been en22 gaged in the production of canola or rapeseed to

23 determine whether the producers favor the termi24 nation or suspension of the order.
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1 (2) DISAPPROVAL OF ORDER.—If the Secretary

2 determines, in a referendum conducted under para3 graph (1), that suspension or termination of the order

4 is favored by a majority of the producers voting in

5 the referendum, the Secretary shall suspend or termi6 nate, as appropriate, collection of assessments under

7 the order within 6 months after the determination,

8 and shall suspend or terminate the order, as appro9 priate, in an orderly manner as soon as practicable

10 after the determination.

11 (3) OPPORTUNITY TO REQUEST ADDITIONAL

12 REFERENDA.—

13 (A) IN GENERAL.—Beginning on the date

14 that is 5 years after the conduct of a referendum

15 under this subtitle, and every 5 years thereafter,

16 the Secretary shall provide canola and rapeseed

17 producers an opportunity to request an addi18 tional referendum.

19 (B) METHOD OF MAKING REQUEST.—

20 (i) IN-PERSON REQUESTS.—To carry

21 out subparagraph (A), the Secretary shall

22 establish a procedure under which a pro23 ducer may request a reconfirmation referen24 dum in-person at a county Cooperative

25 State Research, Education, and Extension
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1 Service office or a county Consolidated

2 Farm Service Agency office during a period

3 established by the Secretary, or as provided

4 in clause (ii).

5 (ii) MAIL-IN REQUESTS.—In lieu of

6 making a request in person, a producer

7 may make a request by mail. To facilitate

8 the submission of requests by mail, the Sec9 retary may make mail-in request forms

10 available to producers.

11 (C) NOTIFICATIONS.—The Secretary shall

12 publish a notice in the Federal Register, and the

13 Board shall provide written notification to pro14 ducers, not later than 60 days prior to the end

15 of the period established under subparagraph

16 (B)(i) for an in-person request, of the oppor17 tunity of producers to request an additional ref18 erendum. The notification shall explain the right

19 of producers to an additional referendum, the

20 procedure for a referendum, the purpose of a ref21 erendum, and the date and method by which

22 producers may act to request an additional ref23 erendum under this paragraph. The Secretary

24 shall take such other action as the Secretary de25 termines is necessary to ensure that producers
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1 are made aware of the opportunity to request an

2 additional referendum.

3 (D) ACTION BY SECRETARY.—As soon as

4 practicable following the submission of a request

5 for an additional referendum, the Secretary shall

6 determine whether a sufficient number of produc7 ers have requested the referendum, and take such

8 steps as are necessary to conduct the referendum,

9 as required under paragraph (1).

10 (E) TIME LIMIT.—An additional referen11 dum requested under the procedures provided in

12 this paragraph shall be conducted not later than

13 1 year after the Secretary determines that a rep14 resentative group of producers, as described in

15 paragraph (1)(B), have requested the conduct of

16 the referendum.

17 (c) PROCEDURES.—

18 (1) REIMBURSEMENT OF SECRETARY.—The Sec19 retary shall be reimbursed from assessments collected

20 by the Board for any expenses incurred by the Sec21 retary in connection with the conduct of an activity

22 required under this section.

23 (2) DATE.—Each referendum shall be conducted

24 for a reasonable period of time not to exceed 3 days,

25 established by the Secretary, under a procedure under
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1 which producers intending to vote in the referendum

2 shall certify that the producers were engaged in the

3 production of canola, rapeseed, or canola or rapeseed

4 products during the representative period and, at the

5 same time, shall be provided an opportunity to vote

6 in the referendum.

7 (3) PLACE.—Referenda under this section shall

8 be conducted at locations determined by the Secretary.

9 On request, absentee mail ballots shall be furnished by

10 the Secretary in a manner prescribed by the Sec11 retary.

12 SEC. 928. PETITION AND REVIEW.

13 (a) PETITION.—

14 (1) IN GENERAL.—A person subject to an order

15 issued under this subtitle may file with the Secretary

16 a petition—

17 (A) stating that the order, a provision of the

18 order, or an obligation imposed in connection

19 with the order is not established in accordance

20 with law; and

21 (B) requesting a modification of the order

22 or an exemption from the order.

23 (2) HEARINGS.—The petitioner shall be given the

24 opportunity for a hearing on a petition filed under
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1 paragraph (1), in accordance with regulations issued

2 by the Secretary.

3 (3) RULING.—After a hearing under paragraph

4 (2), the Secretary shall make a ruling on the petition

5 that is the subject of the hearing, which shall be final

6 if the ruling is in accordance with applicable law.

7 (4) LIMITATION ON PETITION.—Any petition

8 filed under this subtitle challenging an order, or any

9 obligation imposed in connected with an order, shall

10 be filed not later than 2 years after the effective date

11 of the order or obligation.

12 (b) REVIEW.—

13 (1) COMMENCEMENT OF ACTION.—The district

14 court of the United States in any district in which

15 the person who is a petitioner under subsection (a) re16 sides or carries on business shall have jurisdiction to

17 review a ruling on the petition, if a complaint is filed

18 by the person not later than 20 days after the date

19 of the entry of a ruling by the Secretary under sub20 section (a)(3).

21 (2) PROCESS.—Service of process in a proceed22 ing under paragraph (1) shall be conducted in ac23 cordance with the Federal Rules of Civil Procedure.

24 (3) REMANDS.—If the court determines, under

25 paragraph (1), that a ruling issued under subsection
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1 (a)(3) is not in accordance with applicable law, the

2 court shall remand the matter to the Secretary with

3 directions either—

4 (A) to make such ruling as the court shall

5 determine to be in accordance with law; or

6 (B) to take such further proceedings as, in

7 the opinion of the court, the law requires.

8 (4) ENFORCEMENT.—The pendency of proceed9 ings instituted under subsection (a) shall not impede,

10 hinder, or delay the Attorney General or the Sec11 retary from taking any action under section 929.

12 SEC. 929. ENFORCEMENT.

13 (a) JURISDICTION.—The district courts of the United

14 States are vested with jurisdiction specifically to enforce,

15 and to prevent and restrain any person from violating, an

16 order or regulation made or issued under this subtitle.

17 (b) REFERRAL TO ATTORNEY GENERAL.—A civil ac18 tion authorized to be commenced under this section shall

19 be referred to the Attorney General for appropriate action,

20 except that the Secretary shall not be required to refer to

21 the Attorney General a violation of this subtitle if the Sec22 retary believes that the administration and enforcement of

23 this subtitle would be adequately served by providing a suit24 able written notice or warning to the person who committed

25 the violation or by administrative action under section 928.
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1 (c) CIVIL PENALTIES AND ORDERS.—

2 (1) CIVIL PENALTIES.—

3 (A) IN GENERAL.—Any person who will4 fully violates any provision of an order or regu5 lation issued by the Secretary under this subtitle,

6 or who fails or refuses to pay, collect, or remit

7 an assessment or fee required of the person under

8 an order or regulation, may be assessed—

9 (i) a civil penalty by the Secretary of

10 not more than $1,000 for each violation;

11 and

12 (ii) in the case of a willful failure to

13 pay, collect, or remit an assessment as re14 quired by an order or regulation, an addi15 tional penalty equal to the amount of the

16 assessment.

17 (B) SEPARATE OFFENSE.—Each violation

18 under subparagraph (A) shall be a separate of19 fense.

20 (2) CEASE-AND-DESIST ORDERS.—In addition

21 to, or in lieu of, a civil penalty under paragraph (1),

22 the Secretary may issue an order requiring a person

23 to cease and desist from continuing a violation.

24 (3) NOTICE AND HEARING.—No penalty shall be

25 assessed, or cease-and-desist order issued, by the Sec-
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1 retary under this subsection unless the person against

2 whom the penalty is assessed or the order is issued is

3 given notice and opportunity for a hearing before the

4 Secretary with respect to the violation.

5 (4) FINALITY.—The order of the Secretary assess6 ing a penalty or imposing a cease-and-desist order

7 under this subsection shall be final and conclusive un8 less the affected person files an appeal of the order

9 with the appropriate district court of the United

10 States in accordance with subsection (d).

11 (d) REVIEW BY DISTRICT COURT.—

12 (1) COMMENCEMENT OF ACTION.—Any person

13 who has been determined to be in violation of this

14 subtitle, or against whom a civil penalty has been as15 sessed or a cease-and-desist order issued under sub16 section (c), may obtain review of the penalty or order

17 by—

18 (A) filing, within the 30-day period begin19 ning on the date the penalty is assessed or order

20 issued, a notice of appeal in—

21 (i) the district court of the United

22 States for the district in which the person

23 resides or conducts business; or

24 (ii) the United States District Court

25 for the District of Columbia; and
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1 (B) simultaneously sending a copy of the

2 notice by certified mail to the Secretary.

3 (2) RECORD.—The Secretary shall file promptly,

4 in the appropriate court referred to in paragraph (1),

5 a certified copy of the record on which the Secretary

6 has determined that the person has committed a vio7 lation.

8 (3) STANDARD OF REVIEW.—A finding of the

9 Secretary under this section shall be set aside only if

10 the finding is found to be unsupported by substantial

11 evidence.

12 (e) FAILURE TO OBEY ORDERS.—Any person who

13 fails to obey a cease-and-desist order issued under this sec14 tion after the order has become final and unappealable, or

15 after the appropriate United States district court has en16 tered a final judgment in favor of the Secretary, shall be

17 subject to a civil penalty assessed by the Secretary, after

18 opportunity for a hearing and for judicial review under the

19 procedures specified in subsections (c) and (d), of not more

20 than $5,000 for each offense. Each day during which the

21 failure continues shall be considered as a separate violation

22 of the order.

23 (f) FAILURE TO PAY PENALTIES.—If a person fails

24 to pay an assessment of a civil penalty under this section

25 after the assessment has become a final and unappealable
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1 order, or after the appropriate United States district court

2 has entered final judgment in favor of the Secretary, the

3 Secretary shall refer the matter to the Attorney General for

4 recovery of the amount assessed in the district court in

5 which the person resides or conducts business. In an action

6 for recovery, the validity and appropriateness of the final

7 order imposing the civil penalty shall not be subject to re8 view.

9 (g) ADDITIONAL REMEDIES.—The remedies provided

10 in this subtitle shall be in addition to, and not exclusive

11 of, other remedies that may be available.

12 SEC. 930. INVESTIGATIONS AND POWER TO SUBPOENA.

13 (a) INVESTIGATIONS.—The Secretary may make such

14 investigations as the Secretary considers necessary—

15 (1) for the effective administration of this sub16 title; and

17 (2) to determine whether any person has engaged

18 or is engaging in an act that constitutes a violation

19 of this subtitle, or an order, rule, or regulation issued

20 under this subtitle.

21 (b) SUBPOENAS, OATHS, AND AFFIRMATIONS.—

22 (1) IN GENERAL.—For the purpose of an inves23 tigation under subsection (a), the Secretary may ad24 minister oaths and affirmations, subpoena witnesses,

25 take evidence, and issue subpoenas to require the pro-
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1 duction of any records that are relevant to the in2 quiry. The attendance of witnesses and the production

3 of records may be required from any place in the

4 United States.

5 (2) ADMINISTRATIVE HEARINGS.—For the pur6 pose of an administrative hearing held under section

7 928 or 929, the presiding officer is authorized to ad8 minister oaths and affirmations, subpoena and com9 pel the attendance of witnesses, take evidence, and re10 quire the production of any records that are relevant

11 to the inquiry. The attendance of witnesses and the

12 production of records may be required from any place

13 in the United States.

14 (c) AID OF COURTS.—In the case of contumacy by, or

15 refusal to obey a subpoena issued to, any person, the Sec16 retary may invoke the aid of any court of the United States

17 within the jurisdiction of which the investigation or pro18 ceeding is carried on, or where the person resides or carries

19 on business, in order to enforce a subpoena issued by the

20 Secretary under subsection (b). The court may issue an

21 order requiring the person to comply with the subpoena.

22 (d) CONTEMPT.—A failure to obey an order of the

23 court under this section may be punished by the court as

24 contempt of the court.
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1 (e) PROCESS.—Process may be served on a person in

2 the judicial district in which the person resides or conducts

3 business or wherever the person may be found.

4 (f) HEARING SITE.—The site of a hearing held under

5 section 928 or 729 shall be in the judicial district where

6 the person affected by the hearing resides or has a principal

7 place of business.

8 SEC. 931. SUSPENSION OR TERMINATION OF AN ORDER.

9 The Secretary shall, whenever the Secretary finds that

10 an order or a provision of an order obstructs or does not

11 tend to effectuate the declared policy of this subtitle, termi12 nate or suspend the operation of the order or provision. The

13 termination or suspension of an order shall not be consid14 ered an order within the meaning of this subtitle.

15 SEC. 932. REGULATIONS.

16 The Secretary may issue such regulations as are nec17 essary to carry out this subtitle.

18 SEC. 933. AUTHORIZATION OF APPROPRIATIONS.

19 (a) IN GENERAL.—There are authorized to be appro20 priated for each fiscal year such sums as are necessary to

21 carry out this subtitle.

22 (b) ADMINISTRATIVE EXPENSES.—Funds appro23 priated under subsection (a) shall not be available for pay24 ment of the expenses or expenditures of the Board in admin25 istering a provision of an order issued under this subtitle.
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1 Subtitle C—Kiwifruit

2 SEC. 941. SHORT TITLE.

3 This subtitle may be cited as the ‘‘National Kiwifruit

4 Research, Promotion, and Consumer Information Act’’.

5 SEC. 942. FINDINGS AND PURPOSES.

6 (a) FINDINGS.—Congress finds that—

7 (1) domestically produced kiwifruit are grown by

8 many individual producers;

9 (2) virtually all domestically produced kiwifruit

10 are grown in the State of California, although there

11 is potential for production in many other areas of the

12 United States;

13 (3) kiwifruit move in interstate and foreign com14 merce, and kiwifruit that do not move in channels of

15 commerce directly burden or affect interstate com16 merce;

17 (4) in recent years, large quantities of kiwifruit

18 have been imported into the United States;

19 (5) the maintenance and expansion of existing

20 domestic and foreign markets for kiwifruit, and the

21 development of additional and improved markets for

22 kiwifruit, are vital to the welfare of kiwifruit produc23 ers and other persons concerned with producing, mar24 keting, and processing kiwifruit;
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1 (6) a coordinated program of research, pro2 motion, and consumer information regarding

3 kiwifruit is necessary for the maintenance and devel4 opment of the markets; and

5 (7) kiwifruit producers, handlers, and importers

6 are unable to implement and finance such a program

7 without cooperative action.

8 (b) PURPOSES.—The purposes of this subtitle are—

9 (1) to authorize the establishment of an orderly

10 procedure for the development and financing (through

11 an assessment) of an effective and coordinated pro12 gram of research, promotion, and consumer informa13 tion regarding kiwifruit;

14 (2) to use the program to strengthen the position

15 of the kiwifruit industry in domestic and foreign

16 markets and maintain, develop, and expand markets

17 for kiwifruit; and

18 (3) to treat domestically produced kiwifruit and

19 imported kiwifruit equitably.

20 SEC. 943. DEFINITIONS.

21 In this subtitle (unless the context otherwise requires):

22 (1) BOARD.—The term ‘‘Board’’ means the Na23 tional Kiwifruit Board established under section 945.

24 (2) CONSUMER INFORMATION.—The term

25 ‘‘consumer information’’ means any action taken to
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1 provide information to, and broaden the understand2 ing of, the general public regarding the consumption,

3 use, nutritional attributes, and care of kiwifruit.

4 (3) EXPORTER.—The term ‘‘exporter’’ means

5 any person from outside the United States who ex6 ports kiwifruit into the United States.

7 (4) HANDLER.—The term ‘‘handler’’ means any

8 person, excluding a common carrier, engaged in the

9 business of buying and selling, packing, marketing, or

10 distributing kiwifruit as specified in the order.

11 (5) IMPORTER.—The term ‘‘importer’’ means

12 any person who imports kiwifruit into the United

13 States.

14 (6) KIWIFRUIT.—The term ‘‘kiwifruit’’ means all

15 varieties of fresh kiwifruit grown or imported in the

16 United States.

17 (7) MARKETING.—The term ‘‘marketing’’ means

18 the sale or other disposition of kiwifruit into inter19 state, foreign, or intrastate commerce by buying, mar20 keting, distribution, or otherwise placing kiwifruit

21 into commerce.

22 (8) ORDER.—The term ‘‘order’’ means a

23 kiwifruit research, promotion, and consumer informa24 tion order issued by the Secretary under section 944.
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1 (9) PERSON.—The term ‘‘person’’ means any in2 dividual, group of individuals, partnership, corpora3 tion, association, cooperative, or other legal entity.

4 (10) PROCESSING.—The term ‘‘processing’’

5 means canning, fermenting, distilling, extracting,

6 preserving, grinding, crushing, or in any manner

7 changing the form of kiwifruit for the purposes of pre8 paring the kiwifruit for market or marketing the

9 kiwifruit.

10 (11) PRODUCER.—The term ‘‘producer’’ means

11 any person who grows kiwifruit in the United States

12 for sale in commerce.

13 (12) PROMOTION.—The term ‘‘promotion’’ means

14 any action taken under this subtitle (including paid

15 advertising) to present a favorable image for kiwifruit

16 to the general public for the purpose of improving the

17 competitive position of kiwifruit and stimulating the

18 sale of kiwifruit.

19 (13) RESEARCH.—The term ‘‘research’’ means

20 any type of research relating to the use, nutritional

21 value, and marketing of kiwifruit conducted for the

22 purpose of advancing the image, desirability, market23 ability, or quality of kiwifruit.

24 (14) SECRETARY.—The term ‘‘Secretary’’ means

25 the Secretary of Agriculture.
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1 (15) UNITED STATES.—The term ‘‘United

2 States’’ means the 50 States of the United States, the

3 District of Columbia, and the Commonwealth of Puer4 to Rico.

5 SEC. 944. ISSUANCE OF ORDERS.

6 (a) ISSUANCE.—To effectuate the declared purposes of

7 this subtitle, the Secretary shall issue an order applicable

8 to producers, handlers, and importers of kiwifruit. Any

9 such order shall be national in scope. Not more than 1 order

10 shall be in effect under this subtitle at any 1 time.

11 (b) PROCEDURE.—

12 (1) PROPOSAL FOR ISSUANCE OF ORDER.—Any

13 person that will be affected by this subtitle may re14 quest the issuance of, and submit a proposal for, an

15 order under this subtitle.

16 (2) PROPOSED ORDER.—Not later than 90 days

17 after the receipt of a request and proposal for an

18 order, the Secretary shall publish a proposed order

19 and give due notice and opportunity for public com20 ment on the proposed order.

21 (3) ISSUANCE OF ORDER.—After notice and op22 portunity for public comment are provided under

23 paragraph (2), the Secretary shall issue an order, tak24 ing into consideration the comments received and in-
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1 cluding in the order provisions necessary to ensure

2 that the order is in conformity with this subtitle.

3 (c) AMENDMENTS.—The Secretary may amend any

4 order issued under this section. The provisions of this sub5 title applicable to an order shall be applicable to an amend6 ment to an order.

7 SEC. 945. NATIONAL KIWIFRUIT BOARD.

8 (a) MEMBERSHIP.—An order issued by the Secretary

9 under section 944 shall provide for the establishment of a

10 National Kiwifruit Board that consists of the following 11

11 members:

12 (1) 6 members who are producers (or representa13 tives of producers) and who are not exempt from an

14 assessment under section 946(b).

15 (2) 4 members who are importers (or representa16 tives of importers) and who are not exempt from an

17 assessment under section 946(b) or are exporters (or

18 representatives of exporters).

19 (3) 1 member appointed from the general public.

20 (b) ADJUSTMENT OF MEMBERSHIP.—Subject to the

21 11-member limit, the Secretary may adjust membership on

22 the Board to accommodate changes in production and im23 port levels of kiwifruit.

24 (c) APPOINTMENT AND NOMINATION.—
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1 (1) APPOINTMENT.—The Secretary shall appoint

2 the members of the Board from nominations submit3 ted in accordance with this subsection.

4 (2) PRODUCERS.—The members referred to in

5 subsection (a)(1) shall be appointed from individuals

6 nominated by producers.

7 (3) IMPORTERS AND EXPORTERS.—The members

8 referred to in subsection (a)(2) shall be appointed

9 from individuals nominated by importers or export10 ers.

11 (4) PUBLIC REPRESENTATIVE.—The public rep12 resentative shall be appointed from nominations sub13 mitted by other members of the Board.

14 (5) FAILURE TO NOMINATE.—If producers, im15 porters, and exporters fail to nominate individuals

16 for appointment, the Secretary may appoint members

17 on a basis provided for in the order. If the Board fails

18 to nominate a public representative, the member may

19 be appointed by the Secretary without a nomination.

20 (d) ALTERNATES.—The Secretary shall appoint an al21 ternate for each member of the Board. An alternate shall—

22 (1) be appointed in the same manner as the

23 member for whom the individual is an alternate; and

24 (2) serve on the Board if the member is absent

25 from a meeting or is disqualified under subsection (f).
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1 (e) TERMS.—A member of the Board shall be ap2 pointed for a term of 3 years. No member may serve more

3 than 2 consecutive 3-year terms, except that of the members

4 first appointed—

5 (1) 5 members shall be appointed for a term of

6 2 years; and

7 (2) 6 members shall be appointed for a term of

8 3 years.

9 (f) DISQUALIFICATION.—If a member or alternate of

10 the Board who was appointed as a producer, importer, ex11 porter, or public representative member ceases to belong to

12 the group for which the member was appointed, the member

13 or alternate shall be disqualified from serving on the Board.

14 (g) COMPENSATION.—A members or alternate of the

15 Board shall serve without pay.

16 (h) GENERAL POWERS AND DUTIES.—The Board

17 shall—

18 (1) administer an order issued by the Secretary

19 under section 944, and an amendment to the order,

20 in accordance with the order and amendment and

21 this subtitle;

22 (2) prescribe rules and regulations to carry out

23 the order;

24 (3) meet, organize, and select from among mem25 bers of the Board a chairperson, other officers, and
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1 committees and subcommittees, as the Board deter2 mines appropriate;

3 (4) receive, investigate, and report to the Sec4 retary accounts of violations of the order;

5 (5) make recommendations to the Secretary with

6 respect to an amendment that should be made to the

7 order; and

8 (6) employ or contract with a manager and staff

9 to assist in administering the order, except that, to

10 reduce administrative costs and increase efficiency,

11 the Board shall seek, to the extent practicable, to em12 ploy or contract with personnel who are already asso13 ciated with State chartered organizations involved in

14 promoting kiwifruit.

15 SEC. 946. REQUIRED TERMS IN ORDER.

16 (a) BUDGETS AND PLANS.—

17 (1) IN GENERAL.—An order issued under section

18 944 shall provide for periodic budgets and plans in

19 accordance with this subsection.

20 (2) BUDGETS.—The Board shall prepare and

21 submit to the Secretary a budget prior to the begin22 ning of the fiscal year of the anticipated expenses and

23 disbursements of the Board in the administration of

24 the order, including probable costs of research, pro25 motion, and consumer information. A budget shall be-
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come effective on a 2 1 ⁄3-vote of a quorum of the Board

2 and approval by the Secretary.

3 (3) PLANS.—Each budget shall include a plan

4 for research, promotion, and consumer information

5 regarding kiwifruit. A plan under this paragraph

6 shall become effective on approval by the Secretary.

7 The Board may enter into contracts and agreements,

8 on approval by the Secretary, for—

9 (A) the development of and carrying out the

10 plan; and

11 (B) the payment of the cost of the plan,

12 with funds collected pursuant to this subtitle.

13 (b) ASSESSMENTS.—

14 (1) IN GENERAL.—The order shall provide for

15 the imposition and collection of assessments with re16 gard to the production and importation of kiwifruit

17 in accordance with this subsection.

18 (2) RATE.—The assessment rate shall be the

reate that is recommended by a 2 19 ⁄3-vote of a quorum

20 of the Board and approved by the Secretary, except

21 that the rate shall not exceed $0.10 per 7-pound tray

22 of kiwifruit or equivalent.

23 (3) COLLECTION BY FIRST HANDLERS.—Except

24 as provided in paragraph (5), the first handler of

25 kiwifruit shall—
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1 (A) be responsible for the collection from the

2 producer, and payment to the Board, of assess3 ments required under this subsection; and

4 (B) maintain a separate record of the

5 kiwifruit of each producer whose kiwifruit are so

6 handled, including the kiwifruit owned by the

7 handler.

8 (4) IMPORTERS.—The assessment on imported

9 kiwifruit shall be paid by the importer to the United

10 States Customs Service at the time of entry into the

11 United States and shall be remitted to the Board.

12 (5) EXEMPTION FROM ASSESSMENT.—The follow13 ing persons or activities are exempt from an assess14 ment under this subsection:

15 (A) A producer who produces less than 500

16 pounds of kiwifruit per year.

17 (B) An importer who imports less than

18 10,000 pounds of kiwifruit per year.

19 (C) A sale of kiwifruit made directly from

20 the producer to a consumer for a purpose other

21 than resale.

22 (D) The production or importation of

23 kiwifruit for processing.
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1 (6) CLAIM OF EXEMPTION.—To claim an exemp2 tion under paragraph (5) for a particular year, a

3 person shall—

4 (A) submit an application to the Board

5 stating the basis for the exemption and certifying

6 that the quantity of kiwifruit produced, im7 ported, or sold by the person will not exceed any

8 poundage limitation required for the exemption

9 in the year; or

10 (B) be on a list of approved processors de11 veloped by the Board.

12 (c) USE OF ASSESSMENTS.

13 (1) AUTHORIZED USES.—The order shall provide

14 that funds paid to the Board as assessments under

15 subsection (b) may be used by the Board—

16 (A) to pay for research, promotion, and

17 consumer information described in the budget of

18 the Board under subsection (a) and for other ex19 penses incurred by the Board in the administra20 tion of an order;

21 (B) to pay such other expenses for the ad22 ministration, maintenance, and functioning of

23 the Board, including any enforcement efforts for

24 the collection of assessments as may be author-
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1 ized by the Secretary, including interest and

2 penalties for late payments; and

3 (C) to fund a reserve established under sec4 tion 947(d).

5 (2) REQUIRED USES.—The order shall provide

6 that funds paid to the Board as assessments under

7 subsection (b) shall be used by the Board—

8 (A) to pay the expenses incurred by the Sec9 retary, including salaries and expenses of Fed10 eral Government employees, in implementing

11 and administering the order; and

12 (B) to reimburse the Secretary for any ex13 penses incurred by the Secretary in conducting

14 referenda under this subtitle.

15 (3) LIMITATION ON USE OF ASSESSMENTS.—Ex16 cept for the first year of operation of the Board, ex17 penses for the administration, maintenance, and

18 functioning of the Board may not exceed 30 percent

19 of the budget for a year.

20 (d) FALSE CLAIMS.—The order shall provide that any

21 promotion funded with assessments collected under sub22 section (b) may not make—

23 (1) any false claims on behalf of kiwifruit; and
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1 (2) any false statements with respect to the at2 tributes or use of any product that competes with

3 kiwifruit for sale in commerce.

4 (e) PROHIBITION ON USE OF FUNDS.—The order shall

5 provide that funds collected by the Board under this subtitle

6 through assessments may not, in any manner, be used for

7 the purpose of influencing legislation or governmental pol8 icy or action, except for making recommendations to the

9 Secretary as provided for under this subtitle.

10 (f) BOOKS, RECORDS, AND REPORTS.—

11 (1) BOARD.—The order shall require the

12 Board—

13 (A) to maintain books and records with re14 spect to the receipt and disbursement of funds re15 ceived by the Board;

16 (B) to submit to the Secretary from time to

17 time such reports as the Secretary may require

18 for appropriate accounting; and

19 (C) to submit to the Secretary at the end of

20 each fiscal year a complete audit report by an

21 independent auditor regarding the activities of

22 the Board during the fiscal year.

23 (2) OTHERS.—To make information and data

24 available to the Board and the Secretary that is ap25 propriate or necessary for the effectuation, adminis-
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1 tration, or enforcement of this subtitle (or any order

2 or regulation issued under this subtitle), the order

3 shall require handlers and importers who are respon4 sible for the collection, payment, or remittance of as5 sessments under subsection (b)—

6 (A) to maintain and make available for in7 spection by the employees and agents of the

8 Board and the Secretary such books and records

9 as may be required by the order; and

10 (B) to file, at the times and in the manner

11 and content prescribed by the order, reports re12 garding the collection, payment, or remittance of

13 the assessments.

14 (g) CONFIDENTIALITY.—

15 (1) IN GENERAL.—The order shall require that

16 all information obtained pursuant to subsection (f)(2)

17 be kept confidential by all officers and employees and

18 agents of the Department and of the Board. Only such

19 information as the Secretary considers relevant shall

20 be disclosed to the public and only in a suit or ad21 ministrative hearing, brought at the request of the

22 Secretary or to which the Secretary or any officer of

23 the United States is a party, involving the order with

24 respect to which the information was furnished or ac25 quired.
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1 (2) LIMITATIONS.—Nothing in this subsection

2 prohibits—

3 (A) issuance of general statements based on

4 the reports of a number of handlers and import5 ers subject to an order, if the statements do not

6 identify the information furnished by any per7 son; or

8 (B) the publication, by direction of the Sec9 retary, of the name of any person violating an

10 order issued under section 944(a), together with

11 a statement of the particular provisions of the

12 order violated by the person.

13 (3) PENALTY.—Any person who willfully violates

14 this subsection, on conviction, shall be subject to a

15 fine of not more than $1,000 or to imprisonment for

16 not more than 1 year, or both, and, if the person is

17 a member, officer, or agent of the board or an em18 ployee of the Department, shall be removed from of19 fice.

20 (h) WITHHOLDING INFORMATION.—Nothing in this

21 subtitle authorizes the withholding of information from

22 Congress.

23 SEC. 947. PERMISSIVE TERMS IN ORDER.

24 (a) PERMISSIVE TERMS.—On the recommendation of

25 the Board and with the approval of the Secretary, an order
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1 issued under section 944 may include the terms and condi2 tions specified in this section and such additional terms

3 and conditions as the Secretary considers necessary to effec4 tuate the other provisions of the order and are incidental

5 to, and not inconsistent with, this subtitle.

6 (b) ALTERNATIVE PAYMENT AND REPORTING SCHED7 ULES.—The order may authorize the Board to designate

8 different handler payment and reporting schedules to recog9 nize differences in marketing practices and procedures.

10 (c) WORKING GROUPS.—The order may authorize the

11 Board to convene working groups drawn from producers,

12 handlers, importers, exporters, or the general public and

13 utilize the expertise of the groups to assist in the develop14 ment of research and marketing programs for kiwifruit.

15 (d) RESERVE FUNDS.—The order may authorize the

16 Board to accumulate reserve funds from assessments col17 lected pursuant to section 946(b) to permit an effective and

18 continuous coordinated program of research, promotion,

19 and consumer information in years in which production

20 and assessment income may be reduced, except that any re21 serve fund may not exceed the amount budgeted for oper22 ation of this subtitle for 1 year.

23 (e) PROMOTION ACTIVITIES OUTSIDE UNITED

24 STATES.—The order may authorize the Board to use, with

25 the approval of the Secretary, funds collected under section
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1 946(b) and funds from other sources for the development

2 and expansion of sales in foreign markets of kiwifruit pro3 duced in the United States.

4 SEC. 948. PETITION AND REVIEW.

5 (a) PETITION.—

6 (1) IN GENERAL.—A person subject to an order

7 may file with the Secretary a petition—

8 (A) stating that the order, a provision of the

9 order, or an obligation imposed in connection

10 with the order is not in accordance with law;

11 and

12 (B) requesting a modification of the order

13 or an exemption from the order.

14 (2) HEARINGS.—A person submitting a petition

15 under paragraph (1) shall be given an opportunity

16 for a hearing on the petition, in accordance with reg17 ulations issued by the Secretary.

18 (3) RULING.—After the hearing, the Secretary

19 shall make a ruling on the petition which shall be

20 final if the petition is in accordance with law.

21 (4) LIMITATION ON PETITION.—Any petition

22 filed under this subtitle challenging an order, or any

23 obligation imposed in connected with an order, shall

24 be filed not later than 2 years after the effective date

25 of the order or obligation.
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1 (b) REVIEW.—

2 (1) COMMENCEMENT OF ACTION.—The district

3 court of the United States in any district in which

4 the person who is a petitioner under subsection (a) re5 sides or carries on business is vested with jurisdiction

6 to review the ruling on the petition of the person, if

7 a complaint for that purpose is filed not later than

8 20 days after the date of the entry of a ruling by the

9 Secretary under subsection (a).

10 (2) PROCESS.—Service of process in the proceed11 ings shall be conducted in accordance with the Fed12 eral Rules of Civil Procedure.

13 (3) REMANDS.—If the court determines that the

14 ruling is not in accordance with law, the court shall

15 remand the matter to the Secretary with directions—

16 (A) to make such ruling as the court shall

17 determine to be in accordance with law; or

18 (B) to take such further action as, in the

19 opinion of the court, the law requires.

20 (4) ENFORCEMENT.—The pendency of a proceed21 ing instituted pursuant to subsection (a) shall not im22 pede, hinder, or delay the Attorney General or the

23 Secretary from obtaining relief pursuant to section

24 949.
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1 SEC. 949. ENFORCEMENT.

2 (a) JURISDICTION.—A district court of the United

3 States shall have jurisdiction specifically to enforce, and to

4 prevent and restrain any person from violating, any order

5 or regulation made or issued by the Secretary under this

6 subtitle.

7 (b) REFERRAL TO ATTORNEY GENERAL.—A civil ac8 tion authorized to be brought under this section shall be

9 referred to the Attorney General for appropriate action, ex10 cept that the Secretary is not required to refer to the Attor11 ney General a violation of this subtitle, or any order or

12 regulation issued under this subtitle, if the Secretary be13 lieves that the administration and enforcement of this sub14 title would be adequately served by administrative action

15 under subsection (c) or suitable written notice or warning

16 to any person committing the violation.

17 (c) CIVIL PENALTIES AND ORDERS.—

18 (1) CIVIL PENALTIES.—Any person who willfully

19 violates any provision of any order or regulation is20 sued by the Secretary under this subtitle, or who fails

21 or refuses to pay, collect, or remit any assessment or

22 fee duly required of the person under the order or reg23 ulation, may be assessed a civil penalty by the Sec24 retary of not less than $500 nor more than $5,000 for

25 each such violation. Each violation shall be a separate

26 offense.
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1 (2) CEASE-AND-DESIST ORDERS.—In addition to

2 or in lieu of the civil penalty, the Secretary may issue

3 an order requiring the person to cease and desist from

4 continuing the violation.

5 (3) NOTICE AND HEARING.—No order assessing a

6 civil penalty or cease-and-desist order may be issued

7 by the Secretary under this subsection unless the Sec8 retary gives the person against whom the order is is9 sued notice and opportunity for a hearing on the

10 record before the Secretary with respect to the viola11 tion.

12 (4) FINALITY.—The order of the Secretary assess13 ing a penalty or imposing a cease-and-desist order

14 shall be final and conclusive unless the person against

15 whom the order is issued files an appeal from the

16 order with the appropriate district court of the Unit17 ed States, in accordance with subsection (d).

18 (d) REVIEW BY UNITED STATES DISTRICT COURT.—

19 (1) COMMENCEMENT OF ACTION.—Any person

20 against whom a violation is found and a civil pen21 alty assessed or cease-and-desist order issued under

22 subsection (c) may obtain review of the penalty or

23 order in the district court of the United States for the

24 district in which the person resides or does business,
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1 or the United States district court for the District of

2 Columbia, by—

3 (A) filing a notice of appeal in the court

4 not later than 30 days after the date of the order;

5 and

6 (B) simultaneously sending a copy of the

7 notice by certified mail to the Secretary.

8 (2) RECORD.—The Secretary shall promptly file

9 in the court a certified copy of the record on which

10 the Secretary found that the person had committed a

11 violation.

12 (3) STANDARD OF REVIEW.—A finding of the

13 Secretary shall be set aside only if the finding is

14 found to be unsupported by substantial evidence.

15 (e) FAILURE TO OBEY ORDERS.—Any person who fails

16 to obey a cease-and-desist order issued by the Secretary

17 after the order has become final and unappealable, or after

18 the appropriate United States district court has entered a

19 final judgment in favor of the Secretary, shall be subject

20 to a civil penalty assessed by the Secretary, after oppor21 tunity for a hearing and for judicial review under the pro22 cedures specified in subsections (c) and (d), of not more

23 than $500 for each offense. Each day during which the fail24 ure continues shall be considered a separate violation of the

25 order.
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1 (f) FAILURE TO PAY PENALTIES.—If a person fails to

2 pay an assessment of a civil penalty after the assessment

3 has become a final and unappealable order issued by the

4 Secretary, or after the appropriate United States district

5 court has entered final judgment in favor of the Secretary,

6 the Secretary shall refer the matter to the Attorney General

7 for recovery of the amount assessed in the district court of

8 the United States in any district in which the person re9 sides or conducts business. In the action, the validity and

10 appropriateness of the final order imposing the civil pen11 alty shall not be subject to review.

12 SEC. 950. INVESTIGATIONS AND POWER TO SUBPOENA.

13 (a) IN GENERAL.—The Secretary may make such in14 vestigations as the Secretary considers necessary—

15 (1) for the effective carrying out of the respon16 sibilities of the Secretary under this subtitle; or

17 (2) to determine whether a person subject to this

18 subtitle has engaged or is engaging in any act that

19 constitutes a violation of this subtitle, or any order,

20 rule, or regulation issued under this subtitle.

21 (b) POWER TO SUBPOENA.—

22 (1) INVESTIGATIONS.—For the purpose of an in23 vestigation made under subsection (a), the Secretary

24 may administer oaths and affirmations and may

25 issue subpoenas to require the production of any
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1 records that are relevant to the inquiry. The produc2 tion of any such records may be required from any

3 place in the United States.

4 (2) ADMINISTRATIVE HEARINGS.—For the pur5 pose of an administrative hearing held under section

6 948 or 949, the presiding officer is authorized to ad7 minister oaths and affirmations, subpoena witnesses,

8 compel the attendance of witnesses, take evidence, and

9 require the production of any records that are rel10 evant to the inquiry. The attendance of witnesses and

11 the production of any such records may be required

12 from any place in the United States.

13 (c) AID OF COURTS.—In the case of contumacy by, or

14 refusal to obey a subpoena to, any person, the Secretary

15 may invoke the aid of any court of the United States within

16 the jurisdiction of which the investigation or proceeding is

17 carried on, or where the person resides or carries on busi18 ness, to enforce a subpoena issued by the Secretary under

19 subsection (b). The court may issue an order requiring the

20 person to comply with the subpoena.

21 (d) CONTEMPT.—Any failure to obey the order of the

22 court may be punished by the court as a contempt of the

23 order.
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1 (e) PROCESS.—Process in any such case may be served

2 in the judicial district of which the person resides or con3 ducts business or wherever the person may be found.

4 (f) HEARING SITE.—The site of any hearing held

5 under section 948 or 949 shall be within the judicial district

6 where the person is an inhabitant or has a principal place

7 of business.

8 SEC. 951. REFERENDA.

9 (a) INITIAL REFERENDUM.—

10 (1) REFERENDUM REQUIRED.—During the 60-

11 day period immediately preceding the proposed effec12 tive date of an order issued under section 944, the

13 Secretary shall conduct a referendum among kiwifruit

14 producers and importers who will be subject to assess15 ments under the order, to ascertain whether producers

16 and importers approve the implementation of the

17 order.

18 (2) APPROVAL OF ORDER.—The order shall be19 come effective, as provided in section 944, if the Sec20 retary determines that—

21 (A) the order has been approved by a ma22 jority of the producers and importers voting in

23 the referendum; and

24 (B) the producers and importers produce

25 and import more than 50 percent of the total
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1 volume of kiwifruit produced and imported by

2 persons voting in the referendum.

3 (b) SUBSEQUENT REFERENDA.—The Secretary may

4 periodically conduct a referendum to determine if kiwifruit

5 producers and importers favor the continuation, termi6 nation, or suspension of any order issued under section 944

7 that is in effect at the time of the referendum.

8 (c) REQUIRED REFERENDA.—The Secretary shall hold

9 a referendum under subsection (b)—

10 (1) at the end of the 6-year period beginning on

11 the effective date of the order and at the end of each

12 subsequent 6-year period;

13 (2) at the request of the Board; or

14 (3) if not less than 30 percent of the kiwifruit

15 producers and importers subject to assessments under

16 the order submit a petition requesting the referendum.

17 (d) VOTE.—On completion of a referendum under sub18 section (b), the Secretary shall suspend or terminate the

19 order that was subject to the referendum at the end of the

20 marketing year if—

21 (1) the suspension or termination of the order is

22 favored by not less than a majority of the producers

23 and importers voting in the referendum; and

24 (2) the producers and importers produce and im25 port more than 50 percent of the total volume of
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1 kiwifruit produced and imported by persons voting in

2 the referendum.

3 (e) CONFIDENTIALITY.—The ballots and other informa4 tion or reports that reveal, or tend to reveal, the vote of

5 any person under this subtitle and the voting list shall be

6 held strictly confidential and shall not be disclosed.

7 SEC. 952. SUSPENSION AND TERMINATION OF ORDER BY

8 SECRETARY.

9 (a) IN GENERAL.—If the Secretary finds that an order

10 issued under section 944, or a provision of the order, ob11 structs or does not tend to effectuate the purposes of this

12 subtitle, the Secretary shall terminate or suspend the oper13 ation of the order or provision.

14 (b) LIMITATION.—The termination or suspension of

15 any order, or any provision of an order, shall not be consid16 ered an order under this subtitle.

17 SEC. 953. REGULATIONS.

18 The Secretary may issue such regulations as are nec19 essary to carry out this subtitle.

20 SEC. 954. AUTHORIZATION OF APPROPRIATIONS.

21 There are authorized to be appropriated such funds as

22 are necessary to carry out this subtitle for each fiscal year.
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1 Subtitle D—Commodity Promotion

2 and Evaluation

3 SEC. 961. COMMODITY PROMOTION AND EVALUATION.

4 (a) FINDINGS.—Congress finds that—

5 (1) it is in the national public interest and vital

6 to the welfare of the agricultural economy of the Unit7 ed States to expand and develop markets for agricul8 tural commodities through generic, industry-funded

9 promotion programs;

10 (2) the programs play a unique role in advanc11 ing the demand for agricultural commodities, since

12 the programs increase the total market for a product

13 to the benefit of consumers and all producers;

14 (3) the programs complement branded advertis15 ing initiatives, which are aimed at increasing the

16 market share of individual competitors;

17 (4) the programs are of particular benefit to

18 small producers, who may lack the resources or mar19 ket power to advertise on their own;

20 (5) the programs do not impede the branded ad21 vertising efforts of individual firms but instead in22 crease market demand by methods that each individ23 ual entity would not have the incentive to employ;

24 (6) the programs, paid for by the producers who

25 directly reap the benefits of the programs, provide a
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1 unique opportunity for agricultural producers to in2 form consumers about their products;

3 (7) it is important to ensure that the programs

4 be carried out in an effective and coordinated manner

5 that is designed to strengthen the position of the com6 modities in the marketplace and to maintain and ex7 pand the markets and uses of the commodities; and

8 (8) independent evaluation of the effectiveness of

9 the programs will assist Congress and the Secretary

10 of Agriculture in ensuring that the objectives of the

11 programs are met.

12 (b) INDEPENDENT EVALUATIONS.—Except as other13 wise provided by law, and at such intervals as the Secretary

14 of Agriculture may determine, but not more frequently than

15 every 3 years or 3 years after the establishment of a pro16 gram, the Secretary shall require that each industry-funded

17 generic promotion program authorized by Federal law for

18 an agricultural commodity shall provide for an independ19 ent evaluation of the program and the effectiveness of the

20 program. The evaluation may include an analysis of bene21 fits, costs, and the efficacy of promotional and research ef22 forts under the program. The evaluation shall be funded

23 from industry assessments and made available to the public.
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1 (c) ADMINISTRATIVE COSTS.—The Secretary shall pro2 vide to Congress annually information on administrative

3 expenses on programs referred to in subsection (b).

Attest:

Secretary.
104TH CONGRESS

2D SESSION H. R. 2854

AMENDMENT
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