`[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4217 Enrolled Bill (ENR)]

        H.R.4217

                       One Hundred Third Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

          Begun and held at the City of Washington on Tuesday,
 the twenty-fifth day of January, one thousand nine hundred and ninety-
                                  four


                                 An Act

  
 
  To reform the Federal crop insurance program, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Federal Crop 
Insurance Reform and Department of Agriculture Reorganization Act of 
1994''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:
Sec. 1. Short title; table of contents.

                 TITLE I--FEDERAL CROP INSURANCE REFORM

Sec. 101. Short title; references.
Sec. 102. Definitions.
Sec. 103. Members of Board of Directors of Corporation.
Sec. 104. General powers.
Sec. 105. Personnel.
Sec. 106. Crop insurance.
Sec. 107. Crop insurance yield coverage.
Sec. 108. Preemption.
Sec. 109. Advisory Committee.
Sec. 110. Funding.
Sec. 111. Noninsured crop disaster assistance.
Sec. 112. Payment and income limitations.
Sec. 113. Producer eligibility.
Sec. 114. Ineligibility for catastrophic risk and noninsured assistance 
          payments.
Sec. 115. Elimination of gender references.
Sec. 116. Prevented planting.
Sec. 117. Report on improving dissemination of crop insurance 
          information.
Sec. 118. Crop insurance provider evaluation.
Sec. 119. Conforming amendments.
Sec. 120. Effective date.

           TITLE II--DEPARTMENT OF AGRICULTURE REORGANIZATION

Sec. 201. Short title.
Sec. 202. Purpose.
Sec. 203. Definitions.

             Subtitle A--General Reorganization Authorities

Sec. 211. Transfer of Department functions to Secretary of Agriculture.
Sec. 212. Authority of Secretary to delegate transferred functions.
Sec. 213. Reductions in number of department personnel.
Sec. 214. Consolidation of headquarters offices.
Sec. 215. Combination of field offices.
Sec. 216. Improvement of information sharing.
Sec. 217. Reports by the Secretary.
Sec. 218. Assistant Secretaries of Agriculture.
Sec. 219. Pay increases prohibited.

           Subtitle B--Farm and Foreign Agricultural Services

Sec. 225. Under Secretary of Agriculture for Farm and Foreign 
          Agricultural Services.
Sec. 226. Consolidated Farm Service Agency.
Sec. 227. State, county, and area committees.

          Subtitle C--Rural Economic and Community Development

Sec. 231. Under Secretary of Agriculture for Rural Economic and 
          Community Development.
Sec. 232. Rural Utilities Service.
Sec. 233. Rural Housing and Community Development Service.
Sec. 234. Rural Business and Cooperative Development Service.
Sec. 235. Conforming amendments regarding Rural Electrification 
          Administration.

           Subtitle D--Food, Nutrition, and Consumer Services

Sec. 241. Under Secretary of Agriculture for Food, Nutrition, and 
          Consumer Services.

              Subtitle E--Natural Resources and Environment

Sec. 245. Under Secretary of Agriculture for Natural Resources and 
          Environment.
Sec. 246. Natural Resources Conservation Service.
Sec. 247. Reorganization of Forest Service.

             Subtitle F--Research, Education, and Economics

Sec. 251. Under Secretary of Agriculture for Research, Education, and 
          Economics.
Sec. 252. Program staff.

                         Subtitle G--Food Safety

Sec. 261. Under Secretary of Agriculture for Food Safety.
Sec. 262. Conditions for implementation of alterations in the level of 
          additives allowed in animal diets.

                  Subtitle H--National Appeals Division

Sec. 271. Definitions.
Sec. 272. National Appeals Division and Director.
Sec. 273. Transfer of functions.
Sec. 274. Notice and opportunity for hearing.
Sec. 275. Informal hearings.
Sec. 276. Right of participants to Division hearing.
Sec. 277. Division hearings.
Sec. 278. Director review of determinations of hearing officers.
Sec. 279. Judicial review.
Sec. 280. Implementation of final determinations of Division.
Sec. 281. Conforming amendments relating to National Appeals Division.
Sec. 282. Expansion of issues covered by State mediation programs.
Sec. 283. Authorization of appropriations.

           Subtitle I--Miscellaneous Reorganization Provisions

Sec. 291. Successorship provisions relating to bargaining units and 
          exclusive representatives.
Sec. 292. Purchase of American-made equipment and products.
Sec. 293. Miscellaneous conforming amendments.
Sec. 294. Removal of obsolete administrative provisions.
Sec. 295. Proposed conforming amendments.
Sec. 296. Termination of authority.

                        TITLE III--MISCELLANEOUS

Sec. 301. Poultry labeling.
Sec. 302. First Amendment rights of employees of the United States 
          Department of Agriculture.
Sec. 303. Adjusted cost of thrifty food plan.
Sec. 304. Office of Risk Assessment and Cost-Benefit Analysis.
Sec. 305. Fair and equitable treatment of socially disadvantaged 
          producers.
Sec. 306. Aviation inspections.

                 TITLE I--FEDERAL CROP INSURANCE REFORM

SEC. 101. SHORT TITLE; REFERENCES.

    (a) Short Title.--This title may be cited as the ``Federal Crop 
Insurance Reform Act of 1994''.
    (b) References to Federal Crop Insurance Act.--Except as otherwise 
expressly provided, whenever in this title an amendment or repeal is 
expressed in terms of an amendment to, or repeal of, a section or other 
provision, the reference shall be considered to be made to a section or 
other provision of the Federal Crop Insurance Act (7 U.S.C. 1501 et 
seq.).

SEC. 102. DEFINITIONS.

    (a) In General.--Section 502 (7 U.S.C. 1502) is amended--
        (1) by striking the section heading and ``Sec. 502.'' and 
    inserting the following:

``SEC. 502. PURPOSE AND DEFINITIONS.

    ``(a) Purpose.--''; and
        (2) by adding at the end the following new subsection:
    ``(b) Definitions.--As used in this title:
        ``(1) Additional coverage.--The term `additional coverage' 
    means a plan of crop insurance coverage providing a level of 
    coverage greater than the level available under catastrophic risk 
    protection.
        ``(2) Approved insurance provider.--The term `approved 
    insurance provider' means a private insurance provider that has 
    been approved by the Corporation to provide insurance coverage to 
    producers participating in the Federal crop insurance program 
    established under this title.
        ``(3) Board.--The term `Board' means the Board of Directors of 
    the Corporation established under section 505(a).
        ``(4) Corporation.--The term `Corporation' means the Federal 
    Crop Insurance Corporation established under section 503.
        ``(5) Department.--The term `Department' means the United 
    States Department of Agriculture.
        ``(6) Loss ratio.--The term `loss ratio' means the ratio of all 
    sums paid by the Corporation as indemnities under any eligible crop 
    insurance policy to that portion of the premium designated for 
    anticipated losses and a reasonable reserve, other than that 
    portion of the premium designated for operating and administrative 
    expenses.
        ``(7) Secretary.--The term `Secretary' means the Secretary of 
    Agriculture.
        ``(8) Transitional yield.--The term `transitional yield' means 
    the maximum average production per acre or equivalent measure that 
    is assigned to acreage for a crop year by the Corporation in 
    accordance with the regulations of the Corporation whenever the 
    producer fails--
            ``(A) to certify that acceptable documentation of 
        production and acreage for the crop year is in the possession 
        of the producer; or
            ``(B) to present the acceptable documentation on the demand 
        of the Corporation or an insurance company reinsured by the 
        Corporation.''.
    (b) Conforming Amendments.--
        (1) The first sentence of section 503 (7 U.S.C. 1503) is 
    amended by striking ``(herein called the Corporation)''.
        (2) Section 504 (7 U.S.C. 1504) is amended--
            (A) in subsection (a), by striking ``Board of Directors of 
        the Corporation'' and inserting ``Board''; and
            (B) in subsection (d), by striking ``Federal Crop Insurance 
        Corporation'' and inserting ``Corporation''.
        (3) The first sentence of section 505(a) (7 U.S.C. 1505(a)) is 
    amended by striking ``(hereinafter called the `Board')''.
        (4) Except in section 502, the Act is amended--
            (A) by striking ``Board of Directors'' each place it 
        appears and inserting ``Board'';
            (B) by striking ``Department of Agriculture'' each place it 
        appears and inserting ``Department''; and
            (C) by striking ``Secretary of Agriculture'' each place it 
        appears and inserting ``Secretary''.

SEC. 103. MEMBERS OF BOARD OF DIRECTORS OF CORPORATION.

    The second sentence of section 505(a) (7 U.S.C. 1505(a)) is 
amended--
        (1) by striking ``or Assistant Secretary'' the first place it 
    appears; and
        (2) by striking ``the Under Secretary or Assistant Secretary of 
    Agriculture responsible for the farm credit programs of the 
    Department of Agriculture'' and inserting ``one additional Under 
    Secretary of Agriculture (as designated by the Secretary of 
    Agriculture)''.

SEC. 104. GENERAL POWERS.

    Section 506 (7 U.S.C. 1506) is amended--
        (1) by redesignating subsections (j) through (n) as subsections 
    (k) through (o), respectively;
        (2) by inserting after subsection (i) the following new 
    Psubsection:
    ``(j) Settling Claims.--The Corporation shall have the authority to 
make final and conclusive settlement and adjustment of any claim by or 
against the Corporation or a fiscal officer of the Corporation.'';
        (3) in subsection (l) (as so redesignated)--
            (A) in the first sentence, by inserting ``, and issue 
        regulations,'' after ``agreements''; and
            (B) in the second sentence, by striking ``contracts or 
        agreements'' each place it appears and inserting ``contracts, 
        agreements, or regulations'';
        (4) in subsection (n)(1) (as so redesignated), by striking 
    subparagraph (B) and inserting the following new subparagraph:
            ``(B) disqualify the person from purchasing catastrophic 
        risk protection or receiving noninsured assistance for a period 
        of not to exceed 2 years, or from receiving any other benefit 
        under this title for a period of not to exceed 10 years.'';
        (5) in subsection (o) (as so redesignated)--
            (A) by redesignating paragraphs (1) through (4) as 
        subparagraphs (A) through (D) and aligning the margins of each 
        subparagraph with the margins of subparagraph (A) of subsection 
        (n)(1) (as redesignated by paragraph (1));
            (B) by striking ``(o) Actuarial Soundness.--The 
        Corporation'' and inserting the following:
    ``(o) Actuarial Soundness.--
        ``(1) Projected loss ratio as of october 1, 1995.--The 
    Corporation'';
            (C) in subparagraph (A) (as redesignated by subparagraph 
        (A)), by striking ``from obtaining adequate Federal crop 
        insurance, as determined by the Corporation'' and inserting 
        ``(as defined by the Secretary) from obtaining Federal crop 
        insurance'';
            (D) in subparagraph (C) (as so redesignated)--
                (i) by inserting ``, agents, and loss adjusters'' after 
            ``participating producers''; and
                (ii) by inserting ``, agents, and loss adjusters'' 
            after ``identify insured producers''; and
            (E) by adding at the end the following new paragraphs:
        ``(2) Projected loss ratio as of october 1, 1998.--The 
    Corporation shall take such actions, including the establishment of 
    adequate premiums, as are necessary to improve the actuarial 
    soundness of Federal multiperil crop insurance made available under 
    this title to achieve, on and after OctoPber 1, 1998, an overall 
    projected loss ratio of not greater than 1.075.
        ``(3) Nonstandard classification system.--To the extent that 
    the Corporation uses the nonstandard classification system, the 
    Corporation shall apply the system to all insured producers in a 
    fair and consistent manner.''; and
        (6) by adding at the end the following new subsections:
    ``(p) Regulations.--The Secretary and the Corporation are each 
authorized to issue such regulations as are necessary to carry out this 
title.
    ``(q) Program Compliance.--
        ``(1) Timeliness.--The Corporation shall work actively with 
    approved insurance providers to address program compliance and 
    integrity issues as the issues develop.
        ``(2) Notification of compliance problems.--The Corporation 
    shall notify in writing any approved insurance provider with whom 
    the Corporation has an agreement under this title of any error, 
    omission, or failure to follow Corporation regulations or 
    procedures for which the approved insurance provider may be 
    responsible and which may result in a debt owed the Corporation. 
    The notice shall be given within 3 years of the end of the 
    insurance period during which the error, omission, or failure is 
    alleged to have occurred, except that this time limit shall not 
    apply with respect to errors, omissions, or procedural violations 
    that are willful or intentional. The failure to timely provide the 
    notice required under this subsection shall relieve the approved 
    insurance provider from the debt owed the Corporation.
    ``(r) Purchase of American-Made Equipment and PProducts.--
        ``(1) Sense of congress.--It is the sense of Congress that, to 
    the greatest extent practicable, all equipment and products 
    purchased by the Corporation using funds made available to the 
    Corporation should be American-made.
        ``(2) Notice requirement.--In providing financial assistance 
    to, or entering into any contract with, any entity for the purchase 
    of equipment and products to carry out this title, the Corporation, 
    to the greatest extent practicable, shall provide to the entity a 
    notice describing the statement made in Pparagraph (1).''.

SEC. 105. PERSONNEL.

    Section 507 (7 U.S.C. 1507) is amended--
        (1) in subsection (a), by striking ``, and county crop 
    insurance committeemen'';
        (2) in subsection (d), by striking ``of this Act,'' and all 
    that follows through ``agency''; and
        (3) by adding at the end the following new subsection:
    ``(g)(1) The Corporation shall establish a management-level 
position to be known as the Specialty Crops Coordinator.
    ``(2) The Specialty Crops Coordinator shall have primary 
responsibility for addressing the needs of specialty crop producers, 
and for providing information and advice, in connection with the 
activities of the Corporation to improve and expand the insurance 
program for specialty crops. In carrying out this paragraph, the 
PSpecialty Crops Coordinator shall act as the liaison of the 
Corporation with representatives of specialty crop producers and assist 
the Corporation with the knowledge, expertise, and familiarity of the 
producers with risk management and production issues pertaining to 
specialty crops.
    ``(3) The Specialty Crops Coordinator shall use information 
collected from Corporation field office directors in States in which 
specialty crops have a significant economic effect and from other 
sources, including the extension service and colleges and 
Puniversities.''.

SEC. 106. CROP INSURANCE.

    Section 508 (7 U.S.C. 1508) is amended to read as follows:

``SEC. 508. CROP INSURANCE.

    ``(a) Authority to Offer Insurance.--
        ``(1) In general.--If sufficient actuarial data are available 
    (as determined by the Corporation), the Corporation may insure, or 
    provide reinsurance for insurers of, producers of agricultural 
    commodities grown in the United States under 1 or more plans of 
    insurance determined by the Corporation to be adapted to the 
    agricultural commodity concerned. To qualify for coverage under a 
    plan of insurance, the losses of the insured commodity must be due 
    to drought, flood, or other natural disaster (as determined by the 
    Secretary).
        ``(2) Period.--Except in the cases of tobacco and potatoes, 
    insurance shall not extend beyond the period during which the 
    insured commodity is in the field. As used in the preceding 
    sentence, in the case of an aquacultural species, the term `field' 
    means the environment in which the commodity is produced.
        ``(3) Exclusions.--Insurance provided under this subsection 
    shall not cover losses due to--
            ``(A) the neglect or malfeasance of the producer;
            ``(B) the failure of the producer to reseed to the same 
        crop in such areas and under such circumstances as it is 
        customary to reseed; or
            ``(C) the failure of the producer to follow good farming 
        practices (as determined by the Secretary).
        ``(4) Expansion to other areas or single producers.--
            ``(A) Area expansion.--The Corporation may offer plans of 
        insurance or reinsurance for production of agricultural 
        commodities in the Commonwealth of Puerto Rico, the Virgin 
        Islands, Guam, American Samoa, the Commonwealth of the Northern 
        Mariana Islands, the Republic of the Marshall Islands, the 
        Federated States of Micronesia, and the Republic of Palau in 
        the same manner as provided in this section for production of 
        agricultural commodities in the United States.
            ``(B) Producer expansion.--In an area in the United States 
        or specified in subparagraph (A) where crop insurance is not 
        available for a particular agricultural commodity, the 
        Corporation may offer to enter into a written Pagreement with 
        an individual producer operating in the area for insurance 
        coverage under this title if the producer has actuarially sound 
        data relating to the production by the producer of the 
        commodity and the data is acceptable to the Corporation.
        ``(5) Dissemination of crop insurance information.--The 
    Corporation shall make available to producers through local offices 
    of the Department--
            ``(A) current and complete information on all aspects of 
        Federal crop insurance; and
            ``(B) a listing of insurance agents and companies offering 
        to sell crop insurance in the area of the producers.
        ``(6) Addition of new and specialty crops.--
            ``(A) Data collection.--Not later than 180 days after the 
        date of enactment of this paragraph, the Secretary shall issue 
        guidelines for publication in the Federal Register for data 
        collection to assist the Corporation in formulating crop 
        insurance policies for new and specialty crops.
            ``(B) Addition of new crops.--Not later than 1 year after 
        the date of enactment of this paragraph, and annually 
        thereafter, the Corporation shall report to Congress on the 
        progress and expected timetable for expanding crop insurance 
        coverage under this title to new and specialty crops.
            ``(C) Addition of direct sale perishable crops.--Not later 
        than 1 year after the date of enactment of this paragraph, the 
        Corporation shall report to Congress on the feasibility of 
        offering a crop insurance program designed to meet the needs of 
        specialized producers of vegetables and other perishable crops 
        who market through direct marketing channels.
    ``(b) Catastrophic Risk Protection.--
        ``(1) In general.--The Corporation shall offer a catastrophic 
    risk protection plan to indemnify producers for crop loss due to 
    loss of yield or prevented planting, if provided by the 
    Corporation, when the producer is unable, because of drought, 
    flood, or other natural disaster (as determined by the Secretary), 
    to plant other crops for harvest on the acreage for the crop year.
        ``(2) Amount of coverage.--
            ``(A) In general.--Subject to subparagraph (B)--
                ``(i) in the case of each of the 1995 through 1998 crop 
            years, catastrophic risk protection shall offer a producer 
            coverage for a 50 percent loss in yield, on an individual 
            yield or area yield basis, indemnified at 60 percent of the 
            expected market price, or a comparable coverage (as 
            determined by the Corporation); and
                ``(ii) in the case of each of the 1999 and subsequent 
            crop years, catastrophic risk protection shall offer a 
            producer coverage for a 50 percent loss in yield, on an 
            individual yield or area yield basis, indemnified at 55 
            percent of the expected market price, or a comparable 
            coverage (as determined by the Corporation).
            ``(B) Reduction in actual payment.--The amount paid to a 
        producer on a claim under catastrophic risk protection may 
        reflect a reduction that is proportional to the out-of-pocket 
        expenses that are not incurred by the producer as a result of 
        not planting, growing, or harvesting the crop for which the 
        claim is made, as determined by the Corporation.
        ``(3) Yield and loss basis.--A producer shall have the option 
    of basing the catastrophic coverage of the producer on an 
    individual yield and loss basis or on an area yield and loss basis, 
    if both options are offered by the Corporation.
        ``(4) Sale of catastrophic risk coverage.--
            ``(A) In general.--Catastrophic risk coverage may be 
        offered by--
                ``(i) approved insurance providers, if available in an 
            area; and
                ``(ii) at the option of the Secretary that is based on 
            considerations of need, local offices of the Department.
            ``(B) Need.--For purposes of considering need under 
        subparagraph (A)(ii), the Secretary may take into account the 
        most efficient and cost-effective use of resources, the 
        availability of personnel, fairness to local producers, the 
        needs and convenience of local producers, and the Pavailability 
        of private insurance carriers.
        ``(5) Administrative fee.--
            ``(A) Fee required.--Producers shall pay an administrative 
        fee for catastrophic risk protection. The administrative fee 
        for each producer shall be $50 per crop per county, but not to 
        exceed $200 per producer per county up to a maximum of $600 per 
        producer for all counties in which a producer has insured 
        crops. The administrative fee shall be paid by the producer at 
        the time the producer applies for catastrophic risk protection.
            ``(B) Use of fees.--
                ``(i) Fees up to $100.--

                    ``(I) Fees collected by usda offices.--Not more 
                than $100 of the administrative fees paid by a producer 
                for catastrophic risk coverage that are collected by an 
                office of the Department shall be credited to the 
                appropriations account providing funds for the payment 
                of operating and administrative expenses incurred for 
                the delivery of catastrophic risk protection under this 
                section. The fees shall be collected in accordance with 
                appropriation Acts and shall be available until 
                expended without fiscal year limitation for the payment 
                of the expenses.
                    ``(II) Fees collected by approved insurance 
                providers.--Not more than $100 of the administrative 
                fees paid by a producer for catastrophic risk coverage 
                that are collected by an approved insurance provider 
                shall be retained by the provider as payment for 
                operating and administrative expenses incurred for the 
                delivery of catastrophic risk protection.

                ``(ii) Fees in excess of $100.--Notwithstanding the 
            authority granted to the Secretary under the Federal Crop 
            Insurance Corporation account provisions of the 
            Agricultural, Rural Development, Food and Drug 
            Administration, and Related Agencies Appropriations Act, 
            1995, all fees collected under this subsection in excess of 
            $100 per producer per county shall be deposited in the crop 
            insurance fund established under Psection 516(c), to be 
            available for the programs and activities of the 
            Corporation.
            ``(C) Waiver of fee.--The Corporation shall waive the 
        administrative fee for limited resource farmers, as defined by 
        the Corporation.
        ``(6) Participation requirement.--A producer may obtain 
    catastrophic risk coverage for a crop of the producer on land in 
    the county only if the producer obtains the coverage for the crop 
    on all insurable land of the producer in the county.
        ``(7) Eligibility for department programs.--
            ``(A) In general.--To be eligible for any price support or 
        production adjustment program, the conservation reserve 
        program, or any benefit described in section 371 of the 
        Consolidated Farm and Rural Development Act, the producer must 
        obtain at least the catastrophic level of insurance for each 
        crop of economic significance grown on each farm in the county 
        in which the producer has an interest, if insurance is 
        available in the county for the crop.
            ``(B) Definition of crop of economic significance.--As used 
        in this paragraph, the term `crop of economic significance' 
        means a crop that has contributed, or is expected to 
        contribute, 10 percent or more of the total expected value of 
        all crops grown by the producer.
        ``(8) Limitation due to risk.--The Corporation may limit 
    catastrophic risk coverage in any county or area, or on any farm, 
    on the basis of the insurance risk concerned.
        ``(9) Transitional coverage for 1995 crops.--Effective only for 
    a 1995 crop planted or for which insurance attached prior to 
    January 1, 1995, the Corporation shall allow producers of the crops 
    until not later than the end of the 180-day period beginning on the 
    date of enactment of the Federal Crop Insurance Reform Act of 1994 
    to obtain catastrophic risk protection for the crop. On enactment 
    of such Act, a producer who made timely purchases of a crop 
    insurance policy before the date of enactment of such Act, under 
    the provisions of this title then in effect, shall be eligible for 
    the same benefits to which a producer would be entitled under 
    comparable additional coverage under subsection (c).
        ``(10) Simplification.--
            ``(A) Catastrophic risk protection plans.--In developing 
        and carrying out the policies and procedures for a catastrophic 
        risk protection plan under this title, the Corporation shall, 
        to the maximum extent practicable, minimize the paperwork 
        required and the complexity and costs of procedures governing 
        applications for, processing, and servicing of the plan for all 
        parties involved.
            ``(B) Other plans.--To the extent that the policies and 
        procedures developed under subparagraph (A) may be applied to 
        other plans of insurance offered under this title without 
        jeopardizing the actuarial soundness or integrity of the crop 
        insurance program, the Corporation shall apply the policies and 
        procedures to the other plans of insurance within a reasonable 
        period of time (as determined by the Corporation) after the 
        effective date of this Pparagraph.
    ``(c) General Coverage Levels.--
        ``(1) Additional coverage generally.--
            ``(A) In general.--The Corporation shall offer to producers 
        of agricultural commodities grown in the United States plans of 
        crop insurance that provide additional Pcoverage.
            ``(B) Purchase.--To be eligible for additional coverage, a 
        producer must apply to an approved insurance provider for 
        purchase of additional coverage if the coverage is available 
        from an approved insurance provider. If additional coverage is 
        unavailable privately, the Corporation may offer additional 
        coverage plans of insurance directly to producers.
        ``(2) Transfer of relevant information.--If a producer has 
    already applied for catastrophic risk protection at the local 
    office of the Department and elects to purchase additional 
    coverage, the relevant information for the crop of the producer 
    shall be transferred to the approved insurance provider servicing 
    the additional coverage crop policy.
        ``(3) Yield and loss basis.--A producer shall have the option 
    of purchasing additional coverage based on an individual yield and 
    loss basis or on an area yield and loss basis, if both options are 
    offered by the Corporation.
        ``(4) Level of coverage.--The level of coverage shall be dollar 
    denominated and may be purchased at any level not to exceed 85 
    percent of the individual yield or 95 percent of the area yield (as 
    determined by the Corporation). Not later than the beginning of the 
    1996 crop year, the Corporation shall provide producers with 
    information on catastrophic risk and additional coverage in terms 
    of dollar coverage (within the allowable limits of coverage 
    provided in this paragraph).
        ``(5) Price level.--The Corporation shall establish a price 
    level for each commodity on which insurance is offered that--
            ``(A) shall not be less than the projected market price for 
        the commodity (as determined by the Corporation); or
            ``(B) at the discretion of the Corporation, may be based on 
        the actual market price at the time of harvest (as determined 
        by the Corporation).
        ``(6) Price elections.--
            ``(A) In general.--Subject to subparagraph (B), insurance 
        coverage shall be made available to a producer on the basis of 
        any price election that equals or is less than the price 
        election established by the Corporation. The coverage shall be 
        quoted in terms of dollars per acre.
            ``(B) Minimum price elections.--The Corporation may 
        establish minimum price elections below which levels of 
        insurance shall not be offered.
            ``(C) Wheat classes and malting barley.--The Corporation 
        shall, as the Corporation determines practicable, offer 
        producers different price elections for classes of wheat and 
        malting barley (including contract prices in the case of 
        malting barley), in addition to the standard price election, 
        that reflect different market prices, as determined by the 
        Corporation. The Corporation shall, as the Corporation 
        determines practicable, offer additional coverage for each 
        class determined under this subparagraph and charge a premium 
        for each class that is actuarially sound.
        ``(7) Fire and hail coverage.--For levels of additional 
    coverage equal to 65 percent or more of the recorded or appraised 
    average yield indemnified at 100 percent of the expected market 
    price, or an equivalent coverage, a producer may elect to delete 
    from the additional coverage any coverage against damage caused by 
    fire and hail if the producer obtains an equivalent or greater 
    dollar amount of coverage for damage caused by fire and hail from 
    an approved insurance provider. On written notice of the election 
    to the company issuing the policy providing additional coverage and 
    submission of evidence of substitute coverage on the commodity 
    insured, the premium of the producer shall be reduced by an amount 
    determined by the Corporation to be actuarially appropriate, taking 
    into account the actuarial value of the remaining coverage provided 
    by the Corporation. In no event shall the producer be given credit 
    for an amount of premium determined to be greater than the 
    actuarial value of the protection against losses caused by fire and 
    hail that is included in the additional coverage for the crop.
        ``(8) State premium subsidies.--The Corporation may enter into 
    an agreement with any State or agency of a State under which the 
    State or agency may pay to the approved insurance provider an 
    additional premium subsidy to further reduce the portion of the 
    premium paid by producers in the State.
        ``(9) Limitations on additional coverage.--The Board may limit 
    the availability of additional coverage under this subsection in 
    any county or area, or on any farm, on the basis of the insurance 
    risk involved. The Board shall not offer additional coverage equal 
    to less than 50 percent of the recorded or appraised average yield 
    indemnified at 100 percent of the expected market price, or an 
    equivalent coverage.
        ``(10) Administrative fee.--
            ``(A) Fee required.--Except as otherwise provided in this 
        paragraph, if a producer elects to purchase additional coverage 
        for a crop at a level that is less than 65 percent of the 
        recorded or appraised average yield indemnified at 100 percent 
        of the expected market price, or an equivalent coverage, the 
        producer shall pay an administrative fee for the additional 
        coverage. Subsection (b)(5) shall apply in determining the 
        amount and use of the administrative fee or in determining 
        whether to waive the administrative fee.
            ``(B) Exception.--If a producer elects to purchase 
        additional coverage for a crop equal to 65 percent or more of 
        the recorded or appraised average yield indemnified at 100 
        percent of the expected market price, or an equivalent 
        coverage, the producer shall not be subject to the 
        administrative fee required by this paragraph or subsection 
        (b)(5). If the producer has already paid the administrative fee 
        for a lower level of coverage for the crop, the administrative 
        fee shall be refunded to the producer unless the refund would 
        reduce to less than $200 the total amount of the administrative 
        fees paid by the producer for 2 or more crops in the same 
        county for which a lower level of coverage is obtained.
            ``(C) Additional fee.--If a producer elects to purchase 
        additional coverage for a crop equal to or exceeding 65 percent 
        of the recorded or appraised average yield and 100 percent of 
        the expected market price or an equivalent coverage, the 
        producer shall pay an administrative fee of $10 for the 
        coverage. If a producer has already paid an administrative fee 
        for lesser coverage for the crop, the fee for lesser coverage 
        shall be refunded to the producer unless the producer has paid 
        the maximum fee for lesser coverage and refund of the fee will 
        not reduce the amount to be paid below the maximum amount.
            ``(D) Deposit of fees.--Notwithstanding the authority 
        granted to the Secretary under the Federal Crop Insurance 
        Corporation account provisions of the Agricultural, Rural 
        Development, Food and Drug Administration, and Related Agencies 
        Appropriations Act, 1995, administrative fees collected under 
        subparagraph (B) in excess of $100 per producer per county and 
        under subparagraph (C) shall be deposited in the insurance fund 
        established under section 516(c) to be available for the 
        programs and activities of the Corporation.
    ``(d) Premiums.--
        ``(1) Premiums required.--The Corporation shall fix adequate 
    premiums for all the plans of insurance of the Corporation at such 
    rates as the Board determines are actuarially sufficient to attain 
    an expected loss ratio of not greater than 1.1 through September 
    30, 1998, and not greater than 1.075 after OctoPber 1, 1998.
        ``(2) Premium amounts.--The premium amounts for catastrophic 
    risk protection under subsection (b) and additional coverage under 
    subsection (c) shall be fixed as follows:
            ``(A) In the case of catastrophic risk protection, the 
        amount of the premium shall be sufficient to cover anticipated 
        losses and a reasonable reserve.
            ``(B) In the case of additional coverage below 65 percent 
        of the recorded or appraised average yield indemnified at 100 
        percent of the expected market price, or an equivalent 
        coverage, but greater than 50 percent of the recorded or 
        appraised average yield indemnified at 100 percent of the 
        expected market price, or an equivalent coverage, the amount of 
        the premium shall--
                ``(i) be sufficient to cover anticipated losses and a 
            reasonable reserve; and
                ``(ii) include an amount for operating and 
            administrative expenses, as determined by the Corporation.
            ``(C) In the case of additional coverage equal to or 
        greater than 65 percent of the recorded or appraised average 
        yield indemnified at 100 percent of the expected market price, 
        or an equivalent coverage, the amount of the premium shall--
                ``(i) be sufficient to cover anticipated losses and a 
            reasonable reserve; and
                ``(ii) include an amount for operating and 
            administrative expenses, as determined by the Corporation, 
            on an industry-wide basis as a percentage of the amount of 
            the premium used to define loss ratio.
    ``(e) Payment of Portion of Premium by Corporation.--
        ``(1) In general.--For the purpose of encouraging the broadest 
    possible participation of producers in the catastrophic risk 
    protection provided under subsection (b) and the additional 
    coverage provided under subsection (c), the Corporation shall pay a 
    part of the premium in the amounts provided in accordance with this 
    subsection.
        ``(2) Amount of payment.--The amount of the premium to be paid 
    by the Corporation shall be as follows:
            ``(A) In the case of catastrophic risk protection, the 
        amount shall be equivalent to the premium established for 
        catastrophic risk protection under subsection (d)(2)(A).
            ``(B) In the case of coverage below 65 percent of the 
        recorded or appraised average yield indemnified at 100 percent 
        of the expected market price, or an equivalent coverage, but 
        greater than 50 percent of the recorded or appraised average 
        yield indemnified at 100 percent of the expected market price, 
        or an equivalent coverage, the amount shall be equivalent to 
        the amount of premium established for catastrophic risk 
        protection coverage and the amount of operating and 
        administrative expenses established under subsection (d)(2)(B).
            ``(C) In the case of coverage equal to or greater than 65 
        percent of the recorded or appraised average yield indemnified 
        at 100 percent of the expected market price, or an equivalent 
        coverage, on an individual or area basis, the amount shall be 
        equivalent to an amount equal to the premium established for 50 
        percent loss in yield indemnified at 75 percent of the expected 
        market price and the amount of operating and administrative 
        expenses established under subsection (d)(2)(C).
        ``(3) Premium reduction.--If an approved insurance provider 
    determines that the provider may provide insurance more efficiently 
    than the expense reimbursement amount established by the 
    Corporation, the approved insurance provider may reduce, subject to 
    the approval of the Corporation, the premium charged the insured by 
    an amount corresponding to the efficiency. The approved insurance 
    provider shall apply to the Corporation for authority to reduce the 
    premium before making such a reduction, and the reduction shall be 
    subject to the rules, limitations, and procedures established by 
    the PCorporation.
        ``(4) Individual and area crop insurance coverage.--The 
    Corporation shall allow approved insurance providers to offer a 
    plan of insurance to producers that combines both individual yield 
    coverage and area yield coverage at a premium rate determined by 
    the provider under the following conditions:
            ``(A) The individual yield coverage shall be equal to or 
        greater than catastrophic risk protection as described in 
        subsection (b).
            ``(B) The combined policy shall include area yield coverage 
        that is offered by the Corporation or similar area coverage, as 
        determined by the Corporation.
            ``(C) The Corporation shall provide reinsurance on the area 
        yield portion of the combined policy at the request of the 
        provider, except that the provider shall agree to pay to the 
        producer any portion of the area yield and loss indemnity 
        payment received from the Corporation or a commercial reinsurer 
        that exceeds the individual indemnity payment made by the 
        provider to the producer.
            ``(D) The Corporation shall pay a part of the premium 
        equivalent to--
                ``(i) the amount authorized under paragraph (2) (except 
            provisions regarding operating and administrative 
            expenses); and
                ``(ii) the amount of operating and administrative 
            expenses authorized by the Corporation for the area yield 
            coverage portion of the combined policy.
            ``(E) The provider shall provide all underwriting services 
        for the combined policy, including the determination of 
        individual yield coverage premium rates, the terms and 
        conditions of the policy, and the acceptance and classification 
        of applicants into risk categories, subject to subparagraph 
        (F).
            ``(F) The Corporation shall approve the combined policy 
        unless the Corporation determines that the policy is not 
        actuarially sound or that the interests of producers are not 
        adequately protected.
    ``(f) Eligibility.--
        ``(1) In general.--To participate in catastrophic risk 
    protection coverage under this section, a producer shall submit an 
    application at the local office of the Department or to an approved 
    insurance provider.
        ``(2) Sales closing date.--For coverage under this title, each 
    producer shall purchase crop insurance on or before the sales 
    closing date for the crop by providing the required information and 
    executing the required documents. Subject to the goal of ensuring 
    actuarial soundness for the crop insurance program, the sales 
    closing date shall be established by the Corporation to maximize 
    convenience to producers in obtaining benefits under price and 
    production adjustment programs of the Department. Beginning with 
    the 1995 crop year, the Corporation shall establish, for an 
    insurance policy for each insurable crop that is planted in the 
    spring, a sales closing date that is 30 days earlier than the 
    corresponding sales closing date that was established for the 1994 
    crop year.
        ``(3) Records and reporting.--To obtain catastrophic risk 
    protection under subsection (b) or additional coverage under 
    subsection (c), a producer shall--
            ``(A) provide, to the extent required by the Corporation, 
        records acceptable to the Corporation of historical acreage and 
        production of the crops for which the insurance is sought or 
        accept a yield determined by the Corporation; and
            ``(B) report acreage planted and prevented from planting by 
        the designated acreage reporting date for the crop and location 
        as established by the Corporation.
    ``(g) Yield Determinations.--
        ``(1) In general.--Subject to paragraph (2), the Corporation 
    shall establish crop insurance underwriting rules that ensure that 
    yield coverage, as specified in this subsection, is provided to 
    eligible producers obtaining catastrophic risk protection under 
    subsection (b) or additional coverage under subsection (c).
        ``(2) Yield coverage plans.--
            ``(A) Actual production history.--Subject to subparagraph 
        (B), the yield for a crop shall be based on the actual 
        production history for the crop, if the crop was produced on 
        the farm without penalty during each of the 4 crop years 
        immediately preceding the crop year for which actual production 
        history is being established, building up to a production data 
        base for each of the 10 consecutive crop years preceding the 
        crop year for which actual production history is being 
        established.
            ``(B) Assigned yield.--If the producer does not provide 
        satisfactory evidence of the yield of a commodity under 
        subparagraph (A), the producer shall be assigned a yield that 
        is not less than 65 percent of the transitional yield of the 
        producer (adjusted to reflect actual production reflected in 
        the records acceptable to the Corporation for continuous 
        years), as specified in regulations issued by the Corporation 
        based on production history requirements.
            ``(C) Area yield.--The Corporation may offer a crop 
        insurance plan based on an area yield that allows an insured 
        producer to qualify for an indemnity if a loss has occurred in 
        an area (as specified by the Corporation) in which the farm of 
        the producer is located. Under an area yield plan, an insured 
        producer shall be allowed to select the level of area 
        production at which an indemnity will be paid consistent with 
        such terms and conditions as are established by the 
        Corporation.
            ``(D) Commodity-by-commodity basis.--A producer may choose 
        between individual yield or area yield coverage or combined 
        coverage (as provided in subsection (e)(4)), if available, on a 
        commodity-by-commodity basis.
        ``(3) Transitional yields for producers of feed or Pforage.--
            ``(A) In general.--If a producer does not provide 
        satisfactory evidence of a yield under paragraph (2)(A), the 
        producer shall be assigned a yield that is at least 80 percent 
        of the transitional yield established by the Corporation 
        (adjusted to reflect the actual production history of the 
        producer) if the Secretary determines that--
                ``(i) the producer grows feed or forage primarily for 
            on-farm use in a livestock, dairy, or poultry operation; 
            and
                ``(ii) over 50 percent of the net farm income of the 
            producer is derived from the operation.
            ``(B) Yield calculation.--The Corporation shall--
                ``(i) for the first year of participation of a 
            producer, provide the assigned yield under this paragraph 
            to the producer of feed or forage; and
                ``(ii) for the second year of participation of the 
            producer, apply the actual production history or assigned 
            yield requirement, as provided in this subsection.
            ``(C) Termination of authority.--The authority provided by 
        this paragraph shall terminate on the date that is 3 years 
        after the effective date of this paragraph.
    ``(h) Submission of Policies and Materials to Board.--
        ``(1) In general.--In addition to any standard forms or 
    policies that the Board may require be made available to producers 
    under subsection (c), a person may prepare for submission or 
    propose to the Board--
            ``(A) other crop insurance policies and provisions of 
        policies; and
            ``(B) rates of premiums for multiple peril crop insurance 
        pertaining to wheat, soybeans, field corn, and any other crops 
        determined by the Secretary.
        ``(2) Submission of policies.--A policy or other material 
    submitted to the Board under this subsection may be prepared 
    without regard to the limitations contained in this title, 
    including the requirements concerning the levels of coverage and 
    rates and the requirement that a price level for each commodity 
    insured must equal the expected market price for the commodity as 
    established by the Board. In the case of such a policy, the payment 
    by the Corporation of a portion of the premium of the policy may 
    not exceed the amount that would otherwise be authorized under 
    subsection (e).
        ``(3) Review and approval by the board.--A policy or other 
    material submitted to the Board under this subsection shall be 
    reviewed by the Board and, if the Board finds that the interests of 
    producers are adequately protected and that any premiums charged to 
    the producers are actuarially appropriate, shall be approved by the 
    Board for reinsurance and for sale to producers as an additional 
    choice at actuarially appropriate rates and under appropriate terms 
    and conditions. The Corporation may enter into more than 1 
    reinsurance agreement with the approved insurance provider 
    simultaneously to facilitate the offering of the new policies.
        ``(4) Guidelines for submission and review.--The Corporation 
    shall issue regulations to establish guidelines for the submission, 
    and Board review, of policies or other material submitted to the 
    Board under this subsection. At a minimum, the guidelines shall 
    ensure the following:
            ``(A) A proposal submitted to the Board under this 
        subsection shall be considered as confidential commercial or 
        financial information for purposes of section 552(b)(4) of 
        title 5, United States Code, until approved by the Board. A 
        proposal disapproved by the Board shall remain confidential 
        commercial or financial information.
            ``(B) The Board shall provide an applicant with the 
        opportunity to present the proposal to the Board in person if 
        the applicant so desires.
            ``(C) The Board shall provide an applicant with 
        notification of intent to disapprove a proposal not later than 
        30 days prior to making the disapproval. An applicant that 
        receives the notification may modify the application of the 
        applicant. Any modification shall be considered an original 
        application for purposes of this paragraph.
            ``(D) Specific guidelines shall prescribe the timing of 
        submission of proposals under this subsection and timely 
        consideration by the Board so that any approved proposal may be 
        made available to all persons reinsured by the Corporation in a 
        manner permitting the persons to participate, if the persons so 
        desire, in offering such a proposal in the first crop year in 
        which the proposal is approved by the Board for reinsurance, 
        premium subsidy, or other support offered by this title.
        ``(5) Required publication.--Any policy, provision of a policy, 
    or rate approved under this subsection shall be published as a 
    notice in the Federal Register and made available to all persons 
    contracting with or reinsured by the Corporation under the terms 
    and conditions of the contract between the Corporation and the 
    person originally submitting the policy or other material.
        ``(6) Pilot cost of production risk protection plan.--
            ``(A) In general.--The Corporation shall offer, to the 
        extent practicable, a cost of production risk protection plan 
        of insurance that indemnifies producers (including new 
        producers) for insurable losses as provided in this paragraph.
            ``(B) Pilot basis.--The cost of production risk protection 
        plan shall--
                ``(i) be established as a pilot project for each of the 
            1996 and 1997 crop years; and
                ``(ii) be carried out in a number of counties that is 
            determined by the Corporation to be adequate to provide a 
            comprehensive evaluation of the feasibility, effectiveness, 
            and demand among producers for the plan.
            ``(C) Insurable loss.--An insurable loss shall be incurred 
        by a producer if the gross income of the producer (as 
        determined by the Corporation) is less than an amount 
        determined by the Corporation, as a result of a reduction in 
        yield or price resulting from an insured cause.
            ``(D) Definition of new producer.--As used in this 
        paragraph, the term `new producer' means a person that has not 
        been actively engaged in farming for a share of the production 
        of the insured crop for more than 2 crop years, as determined 
        by the Secretary.
        ``(7) Additional prevented planting policy coverage.--
            ``(A) In general.--Beginning with the 1995 crop year, the 
        Corporation shall offer to producers additional prevented 
        planting coverage that insures producers against losses in 
        accordance with this paragraph.
            ``(B) Approved insurance providers.--Additional prevented 
        planting coverage shall be offered by the Corporation through 
        approved insurance providers.
            ``(C) Timing of loss.--A crop loss shall be covered by the 
        additional prevented planting coverage if--
                ``(i) crop insurance policies were obtained for--

                    ``(I) the crop year the loss was experienced; and
                    ``(II) the crop year immediately preceding the year 
                of the prevented planting loss; and

                ``(ii) the cause of the loss occurred--

                    ``(I) after the sales closing date for the crop in 
                the crop year immediately preceding the loss; and
                    ``(II) before the sales closing date for the crop 
                in the year in which the loss is experienced.

        ``(8) Pilot program of assigned yields for new Pproducers.--
            ``(A) Program required.--For each of the 1995 and 1996 crop 
        years, the Corporation shall carry out a pilot program to 
        assign to eligible new producers higher assigned yields than 
        would otherwise be assigned to the producers under subsection 
        (g). The Corporation shall include in the pilot program 30 
        counties that are determined by the Corporation to be adequate 
        to provide a comprehensive evaluation of the feasibility, 
        effectiveness, and demand among new producers for increased 
        assigned yields.
            ``(B) Increased assigned yields.--In the case of an 
        eligible new producer participating in the pilot program, the 
        Corporation shall assign to the new producer a yield that is 
        equal to not less than 110 percent of the transitional yield 
        otherwise established by the Corporation.
            ``(C) Eligible new producer.--The Secretary shall establish 
        a definition of new producer for purposes of determining 
        eligibility to participate in the pilot program.
    ``(i) Adoption of Rates and Coverages.--The Corporation shall 
adopt, as soon as practicable, rates and coverages that will improve 
the actuarial soundness of the insurance operations of the Corporation 
for those crops that are determined to be insured at rates that are not 
actuarially sound, except that no rate may be increased by an amount of 
more than 20 percent over the comparable rate of the preceding crop 
year.
    ``(j) Claims for Losses.--
        ``(1) In general.--Under rules prescribed by the Corporation, 
    the Corporation may provide for adjustment and payment of claims 
    for losses. The rules prescribed by the Corporation shall establish 
    standards to ensure that all claims for losses are adjusted, to the 
    extent practicable, in a uniform and timely manner.
        ``(2) Denial of claims.--
            ``(A) In general.--Subject to subparagraph (B), if a claim 
        for indemnity is denied by the Corporation or an approved 
        provider, an action on the claim may be brought against the 
        Corporation or Secretary only in the United States district 
        court for the district in which the insured farm is located.
            ``(B) Statute of limitations.--A suit on the claim may be 
        brought not later than 1 year after the date on which final 
        notice of denial of the claim is provided to the claimant.
        ``(3) Indemnification.--The Corporation shall provide approved 
    insurance providers with indemnification, including costs and 
    reasonable attorney fees incurred by the approved insurance 
    provider, due to errors or omissions on the part of the 
    Corporation.
    ``(k) Reinsurance.--
        ``(1) In general.--Notwithstanding any other provision of this 
    title, the Corporation shall, to the maximum extent practicable, 
    provide reinsurance to insurers approved by the Corporation that 
    insure producers of any agricultural commodity under 1 or more 
    plans acceptable to the Corporation.
        ``(2) Terms and conditions.--The reinsurance shall be provided 
    on such terms and conditions as the Board may determine to be 
    consistent with subsections (b) and (c) and sound reinsurance 
    principles.
        ``(3) Share of risk.--The reinsurance agreements of the 
    Corporation with the reinsured companies shall require the 
    reinsured companies to bear a sufficient share of any potential 
    loss under the agreement so as to ensure that the reinsured company 
    will sell and service policies of insurance in a sound and prudent 
    manner, taking into consideration the financial condition of the 
    reinsured companies and the availability of private reinsurance.
        ``(4) Rate.--The rate established by the Board to reimburse 
    approved insurance providers and agents for the administrative and 
    operating costs of the providers and agents shall not exceed--
            ``(A) for the 1997 reinsurance year, 29 percent of the 
        premium used to define loss ratio;
            ``(B) for the 1998 reinsurance year, 28 percent of the 
        premium used to define loss ratio; and
            ``(C) for the 1999 reinsurance year, 27.5 percent of the 
        premium used to define loss ratio.
        ``(5) Cost and regulatory reduction.--Consistent with section 
    118 of the Federal Crop Insurance Reform Act of 1994, and 
    consistent with maintenance of program integrity, prevention of 
    fraud and abuse, the need for program expansion, and improvement of 
    quality of service to customers, the Board shall alter program 
    procedures and administrative requirements in order to reduce the 
    administrative and operating costs of approved insurance providers 
    and agents in an amount that corresponds to any reduction in the 
    reimbursement rate required under paragraph (4) during the 5-year 
    period beginning on the date of enactment of this paragraph.
        ``(6) Agency discretion.--The determination of whether the 
    Corporation is achieving, or has achieved, corresponding 
    administrative cost savings shall not be subject to administrative 
    review, and is wholly committed to agency discretion within the 
    meaning of section 701(a)(2) of title 5, United States Code.
        ``(7) Plan.--The Corporation shall submit to Congress a plan 
    outlining the measures that will be used to achieve the reduction 
    required under paragraph (5). If the Corporation can identify 
    additional cost reduction measures, the Corporation shall describe 
    the measures in the plan.
    ``(l) Optional Coverages.--The Corporation may offer specific risk 
protection programs, including protection against prevented planting, 
wildlife depredation, tree damage and disease, and insect infestation, 
under such terms and conditions as the Board may determine, except that 
no program may be undertaken if insurance for the specific risk 
involved is generally available from private companies.
    ``(m) Research.--
        ``(1) In general.--Except as provided in paragraph (2), the 
    Corporation may conduct research, surveys, pilot programs, and 
    investigations relating to crop insurance and agriculture-related 
    risks and losses including insurance on losses involving reduced 
    forage on rangeland caused by drought and by insect infestation, 
    livestock poisoning and disease, destruction of bees due to the use 
    of pesticides, and other unique special risks related to fruits, 
    nuts, vegetables, aquacultural species, forest industry needs 
    (including appreciation), and other agricultural products as 
    determined by the Board.
        ``(2) Exception.--No action may be undertaken with respect to a 
    risk under paragraph (1) if insurance protection against the risk 
    is generally available from private companies.
        ``(3) Evaluation.--After the completion of any pilot program 
    under this subsection, the Corporation shall evaluate the pilot 
    program and submit to the Committee on Agriculture of the House of 
    Representatives and the Committee on Agriculture, Nutrition, and 
    Forestry of the Senate, a report of the operations of the pilot 
    program, including the evaluation by the Corporation of the pilot 
    program and the recommendations of the Corporation with respect to 
    implementing the program on a national basis.''.

SEC. 107. CROP INSURANCE YIELD COVERAGE.

    Section 508A (7 U.S.C. 1508a) is repealed.

SEC. 108. PREEMPTION.

    Section 511 (7 U.S.C. 1511) is amended by adding at the end the 
following sentence: ``A contract of insurance of the Corporation, and a 
contract of insurance reinsured by the Corporation, shall be exempt 
from taxation imposed by any State, municipality, or local taxing 
authority.''.

SEC. 109. ADVISORY COMMITTEE.

    The Act is amended by inserting after section 514 (7 U.S.C. 1514) 
the following new section:
``SEC. 515. ADVISORY COMMITTEE FOR FEDERAL CROP INSURANCE.
    ``(a) Establishment.--The Secretary may establish within the 
Department an advisory committee to be known as the `Advisory Committee 
for Federal Crop Insurance'.
    ``(b) Primary Responsibility.--The primary responsibility of the 
Advisory Committee shall be to advise the Secretary on the 
implementation of this title and on other issues related to crop 
insurance, as determined by the Manager of the Corporation.
    ``(c) Membership.--The Advisory Committee shall be composed of the 
Manager of the Corporation, the Secretary (or a designee of the 
Secretary), and not fewer than 12 members representing organizations 
and agencies involved in the provision of crop insurance under this 
title. Not fewer than 3 of the members of the Advisory Committee shall 
be representatives of the specialty crops industry. The organizations 
or agencies represented by members on the Advisory Committee may 
include insurance companies, insurance agents, farm producer 
organizations, experts on agronomic practices, and banking and lending 
institutions.
    ``(d) Administrative Provisions.--
        ``(1) Terms.--Members of the Advisory Committee (other than the 
    Manager of the Corporation and the Secretary) shall be appointed by 
    the Secretary for a term of up to 2 years from nominations made by 
    the organizations and agencies specified in subsection (c). The 
    terms of the members (other than the Manager of the Corporation and 
    the Secretary) shall be staggered.
        ``(2) Chairperson.--The Advisory Committee shall be chaired by 
    the Manager of the Corporation.
        ``(3) Meetings.--The Advisory Committee shall meet at least 
    annually. The meetings of the Advisory Committee shall be publicly 
    announced in advance and shall be open to the public. Appropriate 
    records of the activities of the Advisory Committee shall be kept 
    and made available to the public on request.
    ``(e) Reports.--Not later than June 30 of each year, the Advisory 
Committee shall submit to the Secretary a report specifying the 
conclusions and recommendations of the Advisory Committee regarding--
        ``(1) the progress toward implementation of this title;
        ``(2) the actuarial soundness of the Federal crop insurance 
    program;
        ``(3) the rate of producer participation in both catastrophic 
    risk protection under section 508(b) and additional coverage under 
    section 508(c); and
        ``(4) the progress toward improved crop insurance coverage for 
    new and specialty crops.
    ``(f) Termination of Authority.--The authority provided by this 
section shall terminate on September 30, 1998.''.

SEC. 110. FUNDING.

    Section 516 (7 U.S.C. 1516) is amended to read as follows:

``SEC. 516. FUNDING.

    ``(a) Authorization of Appropriations.--
        ``(1) Discretionary expenses.--There are authorized to be 
    appropriated for each of fiscal years 1995 through 2001 such sums 
    as are necessary to cover--
            ``(A) the salaries and expenses of the Corporation; and
            ``(B) the administrative and operating expenses of the 
        Corporation for the sales commissions of agents.
        ``(2) Mandatory expenses.--There are authorized to be 
    appropriated such sums as are necessary to cover--
            ``(A) in the case of each of the 1995 through 1997 
        reinsurance years, the administrative and operating expenses of 
        the Corporation for the sales commissions of agents, consistent 
        with subsection (b)(1);
            ``(B) premium subsidies, including the administrative and 
        operating expenses of an approved insurance provider for the 
        delivery of policies with additional coverage; and
            ``(C) payments for noninsured assistance losses under 
        section 519.
    ``(b) Payment of Expenses.--
        ``(1) Administrative and operating expenses.--
            ``(A) In general.--Except as provided in subparagraph (B), 
        in the case of each of the 1995 through 1997 reinsurance years, 
        the Corporation is authorized to pay from the insurance fund 
        established under subsection (c), the administrative and 
        operating expenses of an approved insurance provider, including 
        expenses covered by subsection (a)(1)(B).
            ``(B) Sales commissions for 1997 reinsurance year.--In the 
        case of the 1997 reinsurance year, the amount of the payments 
        from the insurance fund established under subsection (c) for 
        the expenses of the Corporation for the sales commissions of 
        agents may not exceed 8.5 percent of the total amount of 
        premiums paid for additional coverage for the 1997 reinsurance 
        year.
        ``(2) Other expenses.--The Corporation is authorized to pay 
    from the insurance fund established under subsection (c)--
            ``(A) all other expenses of the Corporation (other than 
        expenses covered by subsection (a)(1)), including all premium 
        subsidies, noninsured assistance benefits, and indemnities;
            ``(B) subject to paragraph (1)(B), in the case of each of 
        the 1995 through 1997 reinsurance years, all administrative and 
        expense reimbursements due under a reinsurance agreement with 
        an approved insurance provider; and
            ``(C) to the extent necessary, expenses incurred by the 
        Corporation to carry out research and development.
    ``(c) Insurance Fund.--
        ``(1) In general.--There is established an insurance fund, for 
    the deposit of premium income and amounts made available under 
    subsection (a)(2), to be available without fiscal year limitation.
        ``(2) Commodity credit corporation funds.--If at any time the 
    amounts in the insurance fund are insufficient to enable the 
    Corporation to carry out subsection (b), to the extent the funds of 
    the Commodity Credit Corporation are available--
            ``(A) the Corporation may request the Secretary to use the 
        funds of the Commodity Credit Corporation to carry out 
        subsection (b); and
            ``(B) the Secretary may use the funds of the Commodity 
        Credit Corporation to carry out subsection (b).''.

SEC. 111. NONINSURED CROP DISASTER ASSISTANCE.

    Section 519 (7 U.S.C. 1519) is amended to read as follows:

``SEC. 519. NONINSURED CROP DISASTER ASSISTANCE PROGRAM.

    ``(a) Establishment of Program.--
        ``(1) Establishment.--In the case of an eligible crop described 
    in paragraph (2), the Corporation shall establish a noninsured crop 
    disaster assistance program to provide coverage equivalent to the 
    catastrophic risk protection otherwise available under section 
    508(b).
        ``(2) Eligible crops.--
            ``(A) In general.--As used in this section, the term 
        `eligible crop' means each commercial crop or other 
        agricultural commodity (except livestock)--
                ``(i) for which catastrophic risk protection under 
            section 508(b) is not available; and
                ``(ii) that is produced for food or fiber.
            ``(B) Crops specifically included.--The term `eligible 
        crop' shall include floricultural, ornamental nursery, and 
        Christmas tree crops, turfgrass sod, and industrial crops.
        ``(3) Cause of loss.--To qualify for assistance under this 
    section, the losses of the noninsured commodity shall be due to 
    drought, flood, or other natural disaster, as determined by the 
    Secretary.
    ``(b) Application for Noninsured Crop Disaster Assistance.--
        ``(1) Timely application.--To be eligible for assistance under 
    this section, a producer shall submit an application for noninsured 
    crop disaster assistance at a local office of the Department. The 
    application shall be in such form, contain such information, and be 
    submitted at such time as the Corporation may require.
        ``(2) Records.--A producer shall annually provide records, as 
    required by the Corporation, of previous crop acreage, acreage 
    yields, and production, or the producer shall accept a yield under 
    subsection (e)(3) determined by the Corporation.
        ``(3) Acreage reports.--A producer shall provide reports on 
    acreage planted or prevented from being planted, as required by the 
    Corporation, by the designated acreage reporting date for the crop 
    and location as established by the Corporation.
    ``(c) Loss Requirements.--
        ``(1) Required area loss.--A producer of an eligible crop shall 
    not receive noninsured crop disaster assistance unless the average 
    yield for that crop, or an equivalent measure in the event yield 
    data are not available, in an area falls below 65 percent of the 
    expected area yield, as established by the Corporation.
        ``(2) Prevented planting.--Subject to paragraph (1), the 
    Corporation shall make a prevented planting noninsured crop 
    disaster assistance payment if the producer is prevented from 
    planting more than 35 percent of the acreage intended for the 
    eligible crop because of drought, flood, or other natural disaster, 
    as determined by the Secretary.
        ``(3) Reduced yields.--Subject to paragraph (1), the 
    Corporation shall make a reduced yield noninsured crop disaster 
    assistance payment to a producer if the total quantity of the 
    eligible crop that the producer is able to harvest on any farm is, 
    because of drought, flood, or other natural disaster as determined 
    by the Secretary, less than 50 percent of the expected individual 
    yield for the crop, as determined by the Corporation, factored for 
    the interest of the producer for the crop.
    ``(d) Payment.--The Corporation shall make available to a producer 
eligible for noninsured assistance under this section a Ppayment 
computed by multiplying--
        ``(1) the quantity that is less than 50 percent of the 
    established yield for the crop; by
        ``(2)(A) in the case of each of the 1995 through 1998 crop 
    years, 60 percent of the average market price for the crop (or any 
    comparable coverage determined by the Corporation); or
        ``(B) in the case of each of the 1999 and subsequent crop 
    years, 55 percent of the average market price for the crop (or any 
    comparable coverage determined by the Corporation); by
        ``(3) a payment rate for the type of crop (as determined by the 
    Corporation) that--
            ``(A) in the case of a crop that is produced with a 
        significant and variable harvesting expense, reflects the 
        decreasing cost incurred in the production cycle for the crop 
        that is--
                ``(i) harvested;
                ``(ii) planted but not harvested; and
                ``(iii) prevented from being planted because of 
            drought, flood, or other natural disaster (as determined by 
            the Secretary); and
            ``(B) in the case of a crop that is not produced with a 
        significant and variable harvesting expense, is determined by 
        the Corporation.
    ``(e) Yield Determinations.--
        ``(1) Establishment.--The Corporation shall establish farm 
    yields for purposes of providing noninsured crop disaster 
    assistance under this section.
        ``(2) Actual production history.--The Corporation shall 
    determine yield coverage using the actual production history of the 
    producer over a period of not less than the 4 previous consecutive 
    crop years and not more than 10 consecutive crop years. Subject to 
    paragraph (3), the yield for the year in which noninsured crop 
    disaster assistance is sought shall be equal to the average of the 
    actual production history of the producer during the period 
    considered.
        ``(3) Assignment of yield.--If a producer does not submit 
    adequate documentation of production history to determine a crop 
    yield under paragraph (2), the Corporation shall assign to the 
    producer a yield equal to not less than 65 percent of the 
    transitional yield of the producer (adjusted to reflect actual 
    production reflected in the records acceptable to the Corporation 
    for continuous years), as specified in regulations issued by the 
    Corporation based on production history Prequirements.
        ``(4) Prohibition on assigned yields in certain counties.--
            ``(A) In general.--
                ``(i) Documentation.--If sufficient data are available 
            to demonstrate that the acreage of a crop in a county for 
            the crop year has increased by more than 100 percent over 
            any year in the preceding 7 crop years or, if data are not 
            available, if the acreage of the crop in the county has 
            increased significantly from the previous crop years, a 
            producer must provide such detailed documentation of 
            production costs, acres planted, and yield for the crop 
            year for which benefits are being claimed as is required by 
            the Corporation. If the Corporation determines that the 
            documentation provided is not sufficient, the Corporation 
            may require documenting proof that the crop, had the crop 
            been harvested, could have been marketed at a reasonable 
            price.
                ``(ii) Prohibition.--Except as provided in subparagraph 
            (B), a producer who produces a crop on a farm located in a 
            county described in clause (i) may not obtain an assigned 
            yield.
            ``(B) Exception.--A crop or a producer shall not be subject 
        to this subsection if--
                ``(i) the planted acreage of the producer for the crop 
            has been inspected by a third party acceptable to the 
            Secretary; or
                ``(ii)(I) the County Executive Director and the State 
            Executive Director recommend an exemption from the 
            requirement to the Deputy Administrator for State and 
            County Operations of the Agricultural Stabilization and 
            Conservation Service; and
                ``(II) the Deputy Administrator approves the 
            Precommendation.
        ``(5) Limitation on receipt of subsequent assigned yield.--A 
    producer who receives an assigned yield for the current year of a 
    natural disaster because required production records were not 
    submitted to the local office of the Department shall not be 
    eligible for an assigned yield for the year of the next natural 
    disaster unless the required production records of the previous 1 
    or more years (as applicable) are provided to the local office.
        ``(6) Yield variations due to different farming practices.--The 
    Corporation shall ensure that noninsured crop disaster assistance 
    accurately reflects significant yield variations due to different 
    farming practices, such as between irrigated and nonirrigated 
    acreage.
    ``(f) Contract Payments.--A producer who has received a guaranteed 
payment for production, as opposed to delivery, of a crop pursuant to a 
contract shall have the production of the producer adjusted upward by 
the amount of the production equal to the amount of the contract 
payment received.
    ``(g) Payment of Losses.--Payments for noninsured crop disaster 
assistance losses under this section shall be made from the insurance 
fund established under section 516. The losses shall not be included in 
calculating the premiums charged to producers for insurance under 
section 508.
    ``(h) Exclusions.--Noninsured crop disaster assistance under this 
section shall not cover losses due to--
        ``(1) the neglect or malfeasance of the producer;
        ``(2) the failure of the producer to reseed to the same crop in 
    those areas and under such circumstances where it is customary to 
    reseed; or
        ``(3) the failure of the producer to follow good farming 
    practices, as determined by the Corporation.''.

SEC. 112. PAYMENT AND INCOME LIMITATIONS.

    Section 519 (7 U.S.C. 1519) (as amended by section 111) is further 
amended by adding at the end the following new subsection:
    ``(h) Payment and Income Limitations.--
        ``(1) Definitions.--As used in this subsection:
            ``(A) Person.--The term `person' has the meaning provided 
        the term in regulations issued by the Secretary. The 
        regulations shall conform, to the extent practicable, to the 
        regulations defining the term `person' issued under section 
        1001 of the Food Security Act of 1985 (7 U.S.C. 1308).
            ``(B) Qualifying gross revenues.--The term `qualifying 
        gross revenues' means--
                ``(i) if a majority of the gross revenue of the person 
            is received from farming, ranching, and forestry 
            operations, the gross revenue from the farming, ranching, 
            and forestry operations of the person; and
                ``(ii) if less than a majority of the gross revenue of 
            the person is received from farming, ranching, and forestry 
            operations, the gross revenue of the person from all 
            sources.
        ``(2) Payment limitation.--The total amount of payments that a 
    person shall be entitled to receive annually under this title may 
    not exceed $100,000.
        ``(3) Limitation on multiple benefits for same loss.--If a 
    producer who is eligible to receive benefits under catastrophic 
    risk protection under section 508(b) or noninsured crop disaster 
    assistance under this section is also eligible to receive 
    assistance for the same loss under any other program administered 
    by the Secretary, the producer shall be required to elect whether 
    to receive benefits under this title or under the other program, 
    but not both. A producer who purchases additional coverage under 
    section 508(c) may also receive assistance for the same loss under 
    other programs administered by the Secretary, except that the 
    amount received for the loss under the additional coverage together 
    with the amount received under the other programs may not exceed 
    the amount of the actual loss of the producer.
        ``(4) Income limitation.--A person who has qualifying gross 
    revenues in excess of the amount specified in section 2266(a) of 
    the Food, Agriculture, Conservation, and Trade Act of 1990 (7 
    U.S.C. 1421 note) (as in effect on November 28, 1990) during the 
    taxable year (as determined by the Secretary) shall not be eligible 
    to receive any noninsured assistance payment under this section.
        ``(5) Regulations.--The Secretary shall issue regulations 
    prescribing such rules as the Secretary determines necessary to 
    ensure a fair and equitable application of section 1001 of the Food 
    Security Act of 1985 (7 U.S.C. 1308), the general payment 
    limitation regulations of the Secretary, and the limitations 
    established under this subsection.''.

SEC. 113. PRODUCER ELIGIBILITY.

    Section 520 (7 U.S.C. 1520) is amended to read as follows:

``SEC. 520. PRODUCER ELIGIBILITY.

    ``Except as otherwise provided in this title, a producer shall not 
be denied insurance under this title if--
        ``(1) for purposes of catastrophic risk protection coverage, 
    the producer is a `person' (as defined by the Secretary); and
        ``(2) for purposes of any other plan of insurance, the producer 
    is 18 years of age and has a bona fide insurable interest in a crop 
    as an owner-operator, landlord, tenant, or sharecropper.''.
    SEC. 114. INELIGIBILITY FOR CATASTROPHIC RISK AND NONINSURED 
      ASSISTANCE PAYMENTS.
    The Act (7 U.S.C. 1501 et seq.) is amended by adding at the end the 
following new section:
``SEC. 521. INELIGIBILITY FOR CATASTROPHIC RISK AND NONINSURED 
ASSISTANCE PAYMENTS.
    ``If the Secretary determines that a person has knowingly adopted a 
material scheme or device to obtain catastrophic risk, additional 
coverage, or noninsured assistance benefits under this title to which 
the person is not entitled, has evaded this title, or has acted with 
the purposes of evading this title, the person shall be ineligible to 
receive all benefits applicable to the crop year for which the scheme 
or device was adopted. The authority provided by this section shall be 
in addition to, and shall not supplant, the authority provided by 
section 506(n).''.

SEC. 115. ELIMINATION OF GENDER REFERENCES.

    (a) Management of Corporation.--Section 505 (7 U.S.C. 1505) is 
amended--
        (1) in subsection (a), by striking the third sentence and 
    inserting ``The Board shall be appointed by, and hold office at the 
    pleasure of, the Secretary. The Secretary shall not be a member of 
    the Board.''; and
        (2) in subsection (d)--
            (A) by striking ``upon him''; and
            (B) by striking ``He shall be appointed by,'' and inserting 
        ``The manager shall be appointed by,''.
    (b) Personnel.--Section 507 (7 U.S.C. 1507) is amended--
        (1) in subsection (a), by striking ``as he may determine: 
    Provided, That'' and inserting ``as the Secretary may determine 
    appropriate. However,''; and
        (2) in subsection (d), by striking ``as he may request'' and 
    inserting ``that the Secretary requests''.
    (c) Indemnities Exempt From Levy.--Section 509 (7 U.S.C. 1509) is 
amended by striking ``or his estate'' and inserting ``or the estate of 
the insured''.

SEC. 116. PREVENTED PLANTING.

    (a) In General.--Effective for the 1994 crop year, a producer 
described in subsection (b) shall receive compensation under the 
prevented planting coverage policy provision described in subsection 
(b)(1) by--
        (1) obtaining from the Secretary of Agriculture the applicable 
    amount that is payable under the conserving use program described 
    in subsection (b)(4); and
        (2) obtaining from the Federal Crop Insurance PCorporation the 
    amount that is equal to the difference between--
            (A) the amount that is payable under the conserving use 
        program; and
            (B) the amount that is payable under the prevented planting 
        coverage policy.
    (b) Eligible Producers.--Subsection (a) shall apply to a producer 
who--
        (1) purchased a prevented planting policy for the 1994 crop 
    year from the Federal Crop Insurance Corporation prior to the 
    spring sales closing date for the 1994 crop year;
        (2) is unable to plant a crop due to major, widespread flooding 
    in the Midwest, or excessive ground moisture, that occurred prior 
    to the spring sales closing date for the 1994 crop year;
        (3) had a reasonable expectation of planting a crop on the 
    prevented planting acreage for the 1994 crop year; and
        (4) participates in a conserving use program established for 
    the 1994 crop of wheat, feed grains, upland cotton, or rice 
    established under section 107B(c)(1)(E), 105B(c)(1)(E), 
    103B(c)(1)(D), or 101B(c)(1)(D), respectively, of the Agricultural 
    Act of 1949 (7 U.S.C. 1445b-3a(c)(1)(E), 1444f(c)(1)(E), 1444-
    2(c)(1)(D), or 1441-2(c)(1)(D)).
    (c) Oilseed Prevented Planting Payments.--
        (1) In general.--Effective for the 1994 crop year, a producer 
    of a crop of oilseeds (as defined in section 205(a) of the 
    Agricultural Act of 1949 (7 U.S.C. 1446f(a))) shall receive a 
    prevented planting payment for the crop if the requirements of 
    paragraphs (1), (2), and (3) of subsection (b) are satisfied.
        (2) Source of payment.--The total amount of payments required 
    under this subsection shall be made by the Federal Crop Insurance 
    Corporation.
    (d) Payment.--A payment under this section may not be made before 
October 1, 1994.
    SEC. 117. REPORT ON IMPROVING DISSEMINATION OF CROP INSURANCE 
      INFORMATION.
    Not later than 180 days after the date of enactment of this Act and 
at the end of each of the 2 1-year periods thereafter, the Federal Crop 
Insurance Corporation shall submit a report to Congress containing a 
plan to implement a sound program for producer education regarding the 
crop insurance program and for the dissemination of crop insurance 
information to producers, as required by section 508(a)(5) of the 
Federal Crop Insurance Act (as amended by section 106).

SEC. 118. CROP INSURANCE PROVIDER EVALUATION.

    (a) In General.--The Comptroller General of the United States and 
the Federal Crop Insurance Corporation (referred to in this section as 
the ``Corporation'') shall jointly evaluate the financial arrangement 
between the Corporation and approved insurance providers to determine 
the quality, costs, and efficiencies of providing the benefits of 
multiple peril crop insurance to producers of agricultural commodities 
covered under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.).
    (b) Collection of Information and Proposals.--The Corporation shall 
require private insurance providers and agents to supply, and the 
private insurance providers and agents shall supply, records and 
information necessary to make the determinations and evaluations 
required under this section. The Corporation shall solicit from the 
approved insurance providers and agents proposals for modifying or 
altering the requirements, regulations, procedures, and processes 
related to implementing the Federal Crop Insurance Act to reduce the 
operating and administrative costs of the providers and agents.
    (c) Initial Report.--Not later than 180 days after receipt of 
information and cost-reduction proposals under subsection (b), the 
Corporation shall evaluate the information and proposals obtained and 
report the results of the evaluation to the Committee on Agriculture of 
the House of Representatives and the Committee on Agriculture, 
Nutrition, and Forestry of the Senate.
    (d) Final Report.--Not later than 2 years after the date of 
enactment of this Act, the Comptroller General and the Corporation 
shall submit a final report that provides the evaluation required under 
subsection (a) to the Committee on Agriculture of the House of 
Representatives and the Committee on Agriculture, Nutrition, and 
Forestry of the Senate. In making the evaluation, the Comptroller 
General and the Corporation shall--
        (1) consider the changes made by the Corporation in response to 
    increased program participation resulting from the enactment of 
    this Act;
        (2) include an evaluation and opinion of the accuracy and 
    reasonableness of--
            (A) the average actual costs for approved insurance 
        providers to deliver multiple peril crop insurance;
            (B) the cost per policy of complying with the requirements, 
        regulations, procedures, and processes of the Federal Crop 
        Insurance Act;
            (C) the cost differences for various provider firm sizes 
        and any business delivered by the Federal Government;
            (D) the adequacy of the standard reimbursement for 
        potential new providers; and
            (E) the identification of any new costs related to the 
        enactment of this Act not previously identified in the 
        information reported by the providers;
        (3) compare delivery costs of multiple peril crop insurance to 
    other insurance coverages that the provider may sell and determine 
    the extent, if any, to which any funds provided to carry out the 
    Federal Crop Insurance Act are being used to fund any other 
    business enterprise operated by the provider;
        (4)(A) assess alternative methods for reimbursing providers for 
    reasonable and necessary expenses associated with delivery of 
    multiple peril crop insurance;
        (B) recommend changes under this paragraph that reasonably 
    demonstrate the need to achieve the greatest operating efficiencies 
    on the part of the provider and the Corporation has been 
    recognized; and
        (C) identify areas for improved operating efficiencies, if any, 
    in the requirements made by the Corporation for compliance and 
    program integrity;
        (5) assess the potential for alternative forms of reinsurance 
    arrangements for providers of different firm sizes, taking into 
    consideration--
            (A) the need to achieve a reasonable return on the capital 
        of the provider compared to other lines of insurance;
            (B) the relative risk borne by the provider for the 
        different lines of insurance;
            (C) the availability and price of commercial reinsurance; 
        and
            (D) any additional costs that may be incurred by the 
        Federal Government in carrying out the Federal Crop Insurance 
        Act; and
        (6) include an analysis of the effect of the current or 
    proposed reinsurance arrangements on providers having different 
    business levels.
    (e) Information.--
        (1) Privacy.--In conducting the evaluation required by this 
    section, the Comptroller General and the Corporation shall maintain 
    the privacy of proprietary information.
        (2) Subpoenas.--The Comptroller General shall have the power to 
    subpoena information relevant to the evaluation required by this 
    section from any private insurance provider. The Comptroller 
    General shall allow the Corporation access to the information 
    subpoenaed taking into consideration the necessity of preserving 
    the privacy of proprietary information.

SEC. 119. CONFORMING AMENDMENTS.

    (a) Price Support Programs.--
        (1) In general.--Title IV of the Agricultural Act of 1949 (7 
    U.S.C. 1421 et seq.) is amended by adding at the end the following 
    new section:

``SEC. 427. CROP INSURANCE REQUIREMENT.

    ``As a condition of receiving any benefit (including payments) 
under title I or II for each of the 1995 and subsequent crops of 
tobacco, rice, extra long staple cotton, upland cotton, feed grains, 
wheat, peanuts, oilseeds, and sugar, a producer must obtain at least 
catastrophic risk protection insurance coverage under section 508 of 
the Federal Crop Insurance Act (7 U.S.C. 1508) for the crop and crop 
year for which the benefit is sought, if the coverage is offered by the 
Corporation.''.
        (2) Rice.--Section 101B(c) of such Act (7 U.S.C. 1441-2(c)) is 
    amended--
            (A) in paragraph (1), by striking subparagraph (F); and
            (B) by striking paragraph (2) and inserting the following 
        new paragraph:
        ``(2) Crop insurance requirement.--A producer shall obtain 
    catastrophic risk protection insurance coverage in accordance with 
    section 427.''.
        (3) Upland cotton.--Section 103B(c) of such Act (7 U.S.C. 1444-
    2(c)) is amended--
            (A) in paragraph (1), by striking subparagraph (F); and
            (B) by striking paragraph (2) and inserting the following 
        new paragraph:
        ``(2) Crop insurance requirement.--A producer shall obtain 
    catastrophic risk protection insurance coverage in accordance with 
    section 427.''.
        (4) Feed grains.--Section 105B(c) of such Act (7 U.S.C. 
    1444f(c)) is amended--
            (A) in paragraph (1), by striking subparagraph (G); and
            (B) by striking paragraph (2) and inserting the following 
        new paragraph:
        ``(2) Crop insurance requirement.--A producer shall obtain 
    catastrophic risk protection insurance coverage in accordance with 
    section 427.''.
        (5) Wheat.--Section 107B(c) of such Act (7 U.S.C. 1445b-3a(c)) 
    is amended--
            (A) in paragraph (1), by striking subparagraph (G); and
            (B) by striking paragraph (2) and inserting the following 
        new paragraph:
        ``(2) Crop insurance requirement.--A producer shall obtain 
    catastrophic risk protection insurance coverage in accordance with 
    section 427.''.
        (6) Disaster payments.--Section 208 of such Act (7 U.S.C. 
    1446i) is repealed.
    (b) Farmers Home Administration Programs.--The Consolidated Farm 
and Rural Development Act (7 U.S.C. 1921 et seq.) is amended by adding 
at the end the following new section:

``SEC. 371. CROP INSURANCE REQUIREMENT.

    ``(a) In General.--As a condition of obtaining any benefit 
(including a direct loan, loan guarantee, or payment) described in 
subsection (b), a borrower must obtain at least catastrophic risk 
protection insurance coverage under section 508 of the Federal Crop 
Insurance Act (7 U.S.C. 1508) for the crop and crop year for which the 
benefit is sought, if the coverage is offered by the Corporation.
    ``(b) Applicable Benefits.--Subsection (a) shall apply to--
        ``(1) a farm ownership loan (FO) under section 303;
        ``(2) an operating loan (OL) under section 312; and
        ``(3) an emergency loan (EM) under section 321.''.
    (c) Disaster Assistance.--Subtitle B of title XXII of the Food, 
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 1421 note) 
is amended by striking chapter 3.
    (d) Emergency Appropriations.--
        (1) In general.--Effective January 1, 1995, section 
    251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit 
    Control Act of 1985 (2 U.S.C. 901(b)(2)(D)(i)) is amended by adding 
    at the end the following new sentence: ``This subparagraph shall 
    not apply to appropriations to cover agricultural crop disaster 
    assistance.''.
        (2) Emergency legislation.--Effective January 1, 1995, section 
    252(e) of such Act (2 U.S.C. 902(e)) is amended by adding at the 
    end the following new sentence: ``This subsection shall not apply 
    to direct spending provisions to cover agricultural crop disaster 
    assistance.''.
    (e) False Statements.--Section 1014 of title 18, United States 
Code, is amended by inserting ``or a company the Corporation 
reinsures'' after ``Federal Crop Insurance Corporation''.
    (f) Technical Amendments.--
        (1) The first sentence of section 506(d) (7 U.S.C. 1506(d)) is 
    amended by striking ``508(f)'' and inserting ``508(j)''.
        (2) The last sentence of section 507(c) (7 U.S.C. 1507(c)) is 
    amended by striking ``508(b)'' and inserting ``508(h)''.
        (3) Section 518 (7 U.S.C. 1518) is amended by striking ``(k)'' 
    and inserting ``(m)''.

SEC. 120. EFFECTIVE DATE.

    Except as otherwise provided in this title, this title and the 
amendments made by this title shall become effective on the date of 
enactment of this Act and shall apply to the provision of crop 
insurance under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) 
beginning with the 1995 crop year. With respect to the 1994 crop year, 
the Federal Crop Insurance Act (as in effect on the day before the date 
of enactment of this Act) shall continue to apply.

           TITLE II--DEPARTMENT OF AGRICULTURE REORGANIZATION

SEC. 201. SHORT TITLE.

    (a) Short Title.--This title may be cited as the ``Department of 
Agriculture Reorganization Act of 1994''.

SEC. 202. PURPOSE.

    The purpose of this title is to provide the Secretary of 
Agriculture with the necessary authority to streamline and reorganize 
the Department of Agriculture to achieve greater efficiency, 
effectiveness, and economies in the organization and management of the 
programs and activities carried out by the Department.

SEC. 203. DEFINITIONS.

    Except where the context requires otherwise, for purposes of this 
title:
        (1) Department.--The term ``Department'' means the Department 
    of Agriculture.
        (2) National appeals division.--The term ``National Appeals 
    Division'' means the National Appeals Division of the Department 
    established under section 272.
        (3) Secretary.--The term ``Secretary'' means the Secretary of 
    Agriculture.
        (4) Function.--The term ``function'' means an administrative, 
    financial, or regulatory activity of an agency, office, officer, or 
    employee of the Department.

             Subtitle A--General Reorganization Authorities

    SEC. 211. TRANSFER OF DEPARTMENT FUNCTIONS TO SECRETARY OF 
      AGRICULTURE.
    (a) Transfer of Functions.--Except as provided in subsection (b), 
there are transferred to the Secretary of Agriculture all functions of 
all agencies, offices, officers, and employees of the Department that 
are not already vested in the Secretary on the date of the enactment of 
this Act.
    (b) Exceptions.--Subsection (a) shall not apply to the following 
functions:
        (1) Functions vested by subchapter II of chapter 5 of title 5, 
    United States Code, in administrative law judges employed by the 
    Department.
        (2) Functions vested by the Inspector General Act of 1978 (5 
    U.S.C. App.) in the Inspector General of the Department.
        (3) Functions vested by chapter 9 of title 31, United States 
    Code, in the Chief Financial Officer of the Department.
        (4) Functions vested in the corporations of the Department or 
    the boards of directors and officers of such corporations.
        (5) Functions vested in the Alternative Agricultural Research 
    and Commercialization Board by the Alternative Agricultural 
    Research and Commercialization Act of 1990 (7 U.S.C. 5901 et seq.).
    SEC. 212. AUTHORITY OF SECRETARY TO DELEGATE TRANSFERRED FUNCTIONS.
    (a) Delegation of Authority.--
        (1) Delegation authorized.--Subject to paragraph (2), the 
    Secretary may delegate to any agency, office, officer, or employee 
    of the Department the authority to perform any function transferred 
    to the Secretary under section 211(a) or any other function vested 
    in the Secretary as of the date of the enactment of this Act. The 
    authority provided in the preceding sentence includes the authority 
    to establish, consolidate, alter, or discontinue any agency, 
    office, or other administrative unit of the Department.
        (2) Condition on authority.--The delegation authority provided 
    by paragraph (1) shall be subject to--
            (A) sections 232, 251(d), 273, and 304 and subsections (a) 
        and (b)(1) of section 261;
            (B) sections 502 and 503 of the Agricultural Trade Act of 
        1978 (7 U.S.C. 5692 and 5693); and
            (C) section 8(b)(5) of the Soil Conservation and Domestic 
        Allotment Act (16 U.S.C. 590h(b)(5)).
    (b) Cost-Benefit Analysis Required for Name Change.--
        (1) Analysis required.--Except as provided in paragraph (2), 
    the Secretary shall conduct a cost-benefit analysis before changing 
    the name of any agency, office, division, or other unit of the 
    Department to ensure that the benefits to be derived from changing 
    the name of the agency, office, division, or other unit outweigh 
    the expense of executing the name change.
        (2) Exception.--Paragraph (1) shall not apply with respect to 
    any name change required or authorized by this title.
    (c) Public Comment on Proposed Reorganization.--To the extent that 
the implementation of the authority provided to the Secretary by this 
title to reorganize the Department involves the creation of new 
agencies or offices within the Department or the delegation of major 
functions or major groups of functions to any agency or office of the 
Department (or the officers or employees of such agency or office), the 
Secretary shall, to the extent considered practicable by the 
Secretary--
        (1) give appropriate advance public notice of the proposed 
    reorganization action or delegation; and
        (2) afford appropriate opportunity for interested parties to 
    comment on the proposed reorganization action or delegation.
    (d) Interagency Transfer of Records, Property, Personnel, and 
Funds.--
        (1) Related transfers.--Subject to paragraph (2), as part of 
    the transfer or delegation of a function of the Department made or 
    authorized by this title, the Secretary may transfer within the 
    Department--
            (A) any of the records, property, or personnel affected by 
        the transfer or delegation of the function; and
            (B) unexpended balances (available or to be made available 
        for use in connection with the transferred or delegated 
        function) of appropriations, allocations, or other funds of the 
        Department.
        (2) Applicable law relating to funds transfer.--Section 1531 of 
    title 31, United States Code, shall apply to any transfer of funds 
    under paragraph (1).
    (e) Exhaustion of Administrative Appeals.--Notwithstanding any 
other provision of law, a person shall exhaust all administrative 
appeal procedures established by the Secretary or required by law 
before the person may bring an action in a court of competent 
jurisdiction against--
        (1) the Secretary;
        (2) the Department; or
        (3) an agency, office, officer, or employee of the Department.
    SEC. 213. REDUCTIONS IN NUMBER OF DEPARTMENT PERSONNEL.
    (a) Definitions.--For purposes of this section:
        (1) Headquarters offices.--The term ``headquarters offices'', 
    with respect to agencies, offices, or other administrative units of 
    the Department, means the offices, functions, and employee 
    positions that are located or performed--
            (A) in Washington, District of Columbia; or
            (B) in such other locations as are identified by the 
        Secretary for purposes of this section.
        (2) Field structure.--The term ``field structure'' means the 
    offices, functions, and employee positions of all agencies, 
    offices, or other administrative units of the Department, other 
    than the headquarters offices, except that the term does not 
    include State, county, or area committees established under section 
    8(b)(5) of the Soil Conservation and Domestic Allotment Act (16 
    U.S.C. 590h(b)(5)). The term includes the physical and geographic 
    locations of such agencies, offices, or other administrative units.
    (b) Number of Reductions Required.--The Secretary shall achieve 
Federal employee reductions of at least 7,500 staff years within the 
Department by the end of fiscal year 1999. Reductions in the number of 
full-time equivalent positions within the Department achieved under 
section 5 of the Federal Workforce Restructuring Act of 1994 (Public 
Law 103-226; 108 Stat. 115; 5 U.S.C. 3101 note) shall be counted toward 
the employee reductions required under this section.
    (c) Emphasis on Headquarters Offices Reductions.--In achieving the 
employee reductions required by subsection (b), the Secretary shall 
pursue a goal so that the percentage of the total number of employee 
staff years reduced in headquarters offices is at least twice the 
percentage of the total number of employee staff years reduced in the 
field structure.
    (d) Schedule.--The personnel reductions in headquarters offices and 
in the field structure should be accomplished concurrently in a manner 
determined by the Secretary.

SEC. 214. CONSOLIDATION OF HEADQUARTERS OFFICES.

    Subject to the availability of appropriated funds for this purpose, 
the Secretary shall develop and carry out a plan to consolidate offices 
located in Washington, District of Columbia, of agencies, offices, and 
other administrative units of the Department.

SEC. 215. COMBINATION OF FIELD OFFICES.

    (a) Combination of Offices Required.--Where practicable and to the 
extent consistent with efficient, effective, and improved service, the 
Secretary shall combine field offices of agencies within the Department 
to reduce personnel and duplicative overhead expenses.
    (b) Joint Use of Resources and Offices Required.--When two or more 
agencies of the Department share a common field office, the Secretary 
shall require the agencies to jointly use office space, equipment, 
office supplies, administrative personnel, and clerical personnel 
associated with that field office.

SEC. 216. IMPROVEMENT OF INFORMATION SHARING.

    Whenever the Secretary procures or uses computer systems, as may be 
provided for in advance in appropriations Acts, the Secretary shall do 
so in a manner that enhances efficiency, productivity, and client 
services and is consistent with the goal of promoting computer 
information sharing among agencies of the Department.

SEC. 217. REPORTS BY THE SECRETARY.

    (a) In General.--Subject to subsection (b), notwithstanding any 
other provision of law, the Secretary may, but shall not be required 
to, prepare and submit any report solely to the Committee on 
Agriculture of the House of Representatives and the Committee on 
Agriculture, Nutrition, and Forestry of the Senate.
    (b) Limitation.--For each fiscal year, the Secretary may not 
prepare and submit more than 30 reports referred to in subsection (a).
    (c) Selection of Reports.--In consultation with the Committee on 
Agriculture of the House of Representatives and the Com- Pmittee on 
Agriculture, Nutrition, and Forestry of the Senate, the Secretary shall 
determine which reports, if any, the Secretary will prepare and submit 
in accordance with subsection (b).

SEC. 218. ASSISTANT SECRETARIES OF AGRICULTURE.

    (a) Authorization.--The Secretary is authorized to establish in the 
Department the positions of--
        (1) Assistant Secretary of Agriculture for Congressional 
    Relations;
        (2) Assistant Secretary of Agriculture for Administration; and
        (3) Assistant Secretary of Agriculture for Marketing and 
    Regulatory Programs.
    (b) Confirmation Required.--If the Secretary establishes any 
position of Assistant Secretary authorized under subsection (a), the 
Assistant Secretary shall be appointed by the President, by and with 
the advice and consent of the Senate.
    (c) Succession.--Any official who is serving as Assistant Secretary 
of Agriculture for Administration or Assistant Secretary of Agriculture 
for Congressional Relations on the date of the enactment of this Act 
and who was appointed as such Assistant Secretary by the President, by 
and with the advice and consent of the Senate, shall not be required to 
be reappointed under subsection (b) to the successor position 
authorized under subsection (a) if the Secretary establishes the 
position, and the official occupies the new position, within 180 days 
after the date of the enactment of this Act (or such later date set by 
the Secretary if litigation delays rapid succession).
    (d) Executive Schedule.--Section 5315 of title 5, United States 
Code, is amended by striking ``Assistant Secretaries of Agriculture 
(7).'' and inserting ``Assistant Secretaries of Agriculture (3).''.
    (e) Repeal of Superseded Provisions Regarding Assistant 
Secretaries.--The following provisions of law are repealed:
        (1) Section 2 of Reorganization Plan No. 2 of 1953 (5 U.S.C. 
    App; 7 U.S.C. 2201 note).
        (2) Section 2 of the Act entitled ``An Act to enlarge the 
    powers and duties of the Department of Agriculture and to create an 
    Executive Department to be known as the Department of 
    Agriculture.'', approved February 9, 1889 (7 U.S.C. 2212).
        (3) The first paragraph designated ``Office of the Secretary:'' 
    under the heading ``DEPARTMENT OF AGRICULTURE'' of the Act entitled 
    ``An Act making appropriations for the Department of Agriculture 
    for the fiscal year ending June thirtieth, nineteen hundred and 
    seven.'', approved June 30, 1906 (34 Stat. 670; 7 U.S.C. 2212).
        (4) Section 604(a) of the Rural Development Act of 1972 (7 
    U.S.C. 2212a).
        (5) Section 2 of Public Law 94-561 (7 U.S.C. 2212b).
        (6) Section 8(a) of Public Law 97-325 (7 U.S.C. 2212c).
        (7) Section 1413(d) of the National Agricultural Research, 
    Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3128(d)).

SEC. 219. PAY INCREASES PROHIBITED.

    The compensation of any officer or employee of the Department on 
the date of the enactment of this Act shall not be increased as a 
result of the enactment of this title.

           Subtitle B--Farm and Foreign Agricultural Services

    SEC. 225. UNDER SECRETARY OF AGRICULTURE FOR FARM AND FOREIGN 
      AGRICULTURAL SERVICES.
    (a) Authorization.--The Secretary is authorized to establish in the 
Department the position of Under Secretary of Agriculture for Farm and 
Foreign Agricultural Services.
    (b) Confirmation Required.--If the Secretary establishes the 
position of Under Secretary of Agriculture for Farm and Foreign 
Agricultural Services authorized under subsection (a), the Under 
Secretary shall be appointed by the President, by and with the advice 
and consent of the Senate.
    (c) Functions of Under Secretary.--
        (1) Principal functions.--Upon establishment, the Secretary 
    shall delegate to the Under Secretary of Agriculture for Farm and 
    Foreign Agricultural Services those functions under the 
    jurisdiction of the Department that are related to farm and foreign 
    agricultural services.
        (2) Additional functions.--The Under Secretary of Agriculture 
    for Farm and Foreign Agricultural Services shall perform such other 
    functions as may be required by law or Pprescribed by the 
    Secretary.
    (d) Succession.--Any official who is serving as Under Secretary of 
Agriculture for International Affairs and Commodity Programs on the 
date of the enactment of this Act and who was appointed by the 
President, by and with the advice and consent of the Senate, shall not 
be required to be reappointed under subsection (b) to the successor 
position authorized under subsection (a) if the Secretary establishes 
the position, and the official occupies the new position, within 180 
days after the date of the enactment of this Act (or such later date 
set by the Secretary if litigation delays rapid succession).
    (e) Conforming Amendments.--
        (1) Existing position.--Section 501 of the Agricultural Trade 
    Act of 1978 (7 U.S.C. 5691), relating to the Under Secretary of 
    Agriculture for International Affairs and Commodity Programs, is 
    repealed.
        (2) Executive schedule.--Section 5314 of title 5, United States 
    Code, is amended by striking ``Under Secretary of Agriculture for 
    International Affairs and Commodity Programs.'' and inserting 
    ``Under Secretary of Agriculture for Farm and Foreign Agricultural 
    Services.''.
    SEC. 226. CONSOLIDATED FARM SERVICE AGENCY.
    (a) Establishment.--The Secretary is authorized to establish and 
maintain in the Department a Consolidated Farm Service Agency.
    (b) Functions of Consolidated Farm Service Agency.--If the 
Secretary establishes the Consolidated Farm Service Agency under 
subsection (a), the Secretary is authorized to assign to the Agency 
jurisdiction over the following functions:
        (1) Agricultural price and income support programs, production 
    adjustment programs, and related programs.
        (2) General supervision of the Federal Crop Insurance 
    PCorporation.
        (3) Agricultural credit programs assigned before the date of 
    the enactment of this Act by law to the Farmers Home Administration 
    (including farm ownership and operating, emergency, and disaster 
    loan programs) and other lending programs for agricultural 
    producers and others engaged in the production of agricultural 
    commodities.
        (4) Subchapter B of chapter 1 of subtitle D of title XII of the 
    Food Security Act of 1985 (16 U.S.C. 3831-3836) and the 
    agricultural conservation program under the Soil Conservation and 
    Domestic Allotment Act (16 U.S.C. 590g et seq.).
        (5) Such other functions as the Secretary considers 
    appropriate, except for those programs assigned by the Secretary to 
    the Natural Resources Conservation Service or another agency of the 
    Department under section 246(b).
    (c) Special Concurrence Requirements for Certain Functions.--In 
carrying out the programs specified in subsection (b)(4), the Secretary 
shall--
        (1) acting on the recommendations of the Consolidated Farm 
    Service Agency, with the concurrence of the Natural Resources 
    Conservation Service, issue regulations to carry out such programs;
        (2) ensure that the Consolidated Farm Service Agency, in 
    establishing policies, priorities, and guidelines for such 
    programs, does so with the concurrence of the Natural Resources 
    Conservation Service at national, State, and local levels;
        (3) ensure that, in reaching such concurrence at the local 
    level, the Natural Resources Conservation Service works in 
    cooperation with Soil and Water Conservation Districts or similar 
    organizations established under State law;
        (4) ensure that officials of county and area committees 
    established under section 8(b)(5) of the Soil Conservation and 
    Domestic Allotment Act (16 U.S.C. 590h(b)(5)) meet annually with 
    officials of such Districts or similar organizations to consider 
    local conservation priorities and guidelines; and
        (5) take steps to ensure that the concurrence process does not 
    interfere with the effective delivery of such programs.
    (d) Jurisdiction Over Conservation Program Appeals.--
        (1) In general.--Until such time as an adverse decision 
    described in this paragraph is referred to the National Appeals 
    Division for consideration, the Consolidated Farm Service Agency 
    shall have initial jurisdiction over any administrative appeal 
    resulting from an adverse decision made under title XII of the Food 
    Security Act of 1985 (16 U.S.C. 3801 et seq.), including an adverse 
    decision involving technical determinations made by the Natural 
    Resources Conservation Service.
        (2) Treatment of technical determination.--With respect to 
    administrative appeals involving a technical determination made by 
    the Natural Resources Conservation Service, the Consolidated Farm 
    Service Agency, by rule with the concurrence of the Natural 
    Resources Conservation Service, shall establish procedures for 
    obtaining review by the Natural Resources Conservation Service of 
    the technical determinations involved. Such rules shall ensure that 
    technical criteria established by the Natural Resources 
    Conservation Service shall be used by the Consolidated Farm Service 
    Agency as the basis for any decisions regarding technical 
    determinations. If no review is requested, the technical 
    determination of the Natural Resources Conservation Service shall 
    be the technical basis for any decision rendered by a county or 
    area committee established under section 8(b)(5) of the Soil 
    Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)(5)). If 
    the committee requests a review by the Natural Resources 
    Conservation Service of a wetlands determination of the Service, 
    the Consolidated Farm Service Agency shall consult with other 
    Federal agencies whenever required by law or under a memorandum of 
    agreement in existence on the date of the enactment of this Act.
        (3) Reinstatement of program benefits.--Rules issued to carry 
    out this subsection shall provide for the prompt reinstatement of 
    benefits to a producer who is determined in an administrative 
    appeal to meet the requirements of title XII of the Food Security 
    Act of 1985 applicable to the producer.
    (e) Use of Federal and Non-Federal Employees.--
        (1) Use authorized.--In the implementation of programs and 
    activities assigned to the Consolidated Farm Service Agency, the 
    Secretary may use interchangeably in local offices of the Agency 
    both Federal employees of the Department and non-Federal employees 
    of county and area committees established under section 8(b)(5) of 
    the Soil Conservation and Domestic Allotment Act (16 U.S.C. 
    590h(b)(5)).
        (2) Exception.--Notwithstanding paragraph (1), no personnel 
    action (as defined in section 2302(a)(2)(A) of title 5, United 
    States Code) may be taken with respect to a Federal employee unless 
    such action is taken by another Federal employee.
    (f) Collocation.--To the maximum extent practicable, the PSecretary 
shall collocate county offices of the Consolidated Farm Service Agency 
with county offices of the Natural Resources Conservation Service in 
order to--
        (1) maximize savings from shared equipment, office space, and 
    administrative support;
        (2) simplify paperwork and regulatory requirements;
        (3) provide improved services to agricultural producers and 
    landowners affected by programs administered by the Agency and the 
    Service; and
        (4) achieve computer compatibility between the Agency and the 
    Service to maximize efficiency and savings.
    (g) Savings Provision.--For purposes of subsections (c) through (f) 
of this section:
        (1) A reference to the ``Consolidated Farm Service Agency'' 
    includes any other office, agency, or administrative unit of the 
    Department assigned the functions authorized for the Consolidated 
    Farm Service Agency under this section.
        (2) A reference to the ``Natural Resources Conservation 
    Service'' includes any other office, agency, or administrative unit 
    of the Department assigned the functions authorized for the Natural 
    Resources Conservation Service under section 246(b).
    (h) Conforming Amendment.--Section 331(a) of the Consolidated Farm 
and Rural Development Act (7 U.S.C. 1981(a)) is amended by striking 
``assets to the Farmers Home Administration'' and all that follows 
through the period at the end of the subsection and inserting ``assets 
to such officers or agencies of the Department of Agriculture as the 
Secretary considers appropriate.''.

SEC. 227. STATE, COUNTY, AND AREA COMMITTEES.

    (a) Committees Under the Soil Conservation and Domestic Allotment 
Act.--Section 8(b) of the Soil Conservation and Domestic Allotment Act 
(16 U.S.C. 590h(b)) is amended--
        (1) by inserting ``(1)'' after ``(b)'';
        (2) by designating the second through eighth undesignated 
    paragraphs as paragraphs (2) through (8), respectively; and
        (3) by striking paragraph (5) (as so designated) and inserting 
    the following new paragraph:
    ``(5) State, county, and area committees.--
        ``(A) Appointment of state committees.--The Secretary shall 
    appoint in each State a State committee composed of not fewer than 
    3 nor more than 5 members who are fairly representative of the 
    farmers in the State. The members of a State committee shall serve 
    at the pleasure of the Secretary for such term as the Secretary may 
    establish.
        ``(B) Establishment of county, area, or local committees.--(i) 
    In each county or area in which activities are carried out under 
    this section, the Secretary shall establish a county or area 
    committee.
        ``(ii) Any such committee shall consist of not fewer than 3 nor 
    more than 5 members who are fairly representative of the 
    agricultural producers in the county or area and who shall be 
    elected by the agricultural producers in such county or area under 
    such procedures as the Secretary may prescribe.
        ``(iii) The Secretary may designate local administrative areas 
    within the county or larger area covered by a committee established 
    under clause (i). Only agricultural producers within a local 
    administrative area who participate or cooperate in programs 
    administered within their area shall be eligible for nomination and 
    election to the local committee for that area, under such 
    regulations as the Secretary may prescribe.
        ``(iv) The Secretary shall solicit and accept nominations from 
    organizations representing the interests of socially disadvantaged 
    groups (as defined in section 355(e)(1) of the Consolidated Farm 
    and Rural Development Act (7 U.S.C. 2003(e)(1)).
        ``(v) Members of each county, area, or local committee shall 
    serve for terms not to exceed 3 years.
        ``(C) Termination or combination of committees.--The Secretary 
    may not terminate a county or area committee or combine or 
    consolidate two or more county or area committees unless--
            ``(i) the Secretary first notifies the committee or 
        committees involved of the proposed action; and
            ``(ii) the State committee of the State in which the 
        affected counties are located approves of such action in a vote 
        taken after the end of the 60-day period beginning on the date 
        the notification is received.
        ``(D) Use of committees.--The Secretary shall use the services 
    of such committees in carrying out programs under this section and 
    the agricultural credit programs under the Consolidated Farm and 
    Rural Development Act (7 U.S.C. 1921 et seq.) and in considering 
    administrative appeals as provided by section 226(d) of the 
    Department of Agriculture Reorganization Act of 1994. The Secretary 
    may use the services of such committees in carrying out programs 
    under other authorities administered by the Secretary.
        ``(E) Regulations.--The Secretary shall issue such regulations 
    as the Secretary considers necessary relating to the selection and 
    exercise of the functions of the respective committees, and to the 
    administration through such committees of the programs described in 
    subparagraph (D). Pursuant to such regulations, each county and 
    area committee shall select an executive director for the area or 
    county. Such selection shall be made in the same manner as provided 
    for the selection of the county executive director under section 
    7.21(b)(2) of title 7, Code of Federal Regulations, as in effect on 
    January 1, 1994. Regulations governing payments or grants under 
    this subsection shall be as simple and direct as possible, and, 
    whenever practicable, they shall be classified on the following two 
    bases:
            ``(i) Soil-depleting practices.
            ``(ii) Soil-building practices.
        ``(F) Mandatory duties of secretary.--In carrying out this 
    section, the Secretary shall--
            ``(i) insofar as practicable, protect the interests of 
        tenants and sharecroppers;
            ``(ii) accord such encouragement to producer-owned and 
        producer-controlled cooperative associations as will be in 
        harmony with the policy toward cooperative associations set 
        forth in Federal laws and as will tend to promote efficient 
        methods of marketing and distribution;
            ``(iii) in every practicable manner, protect the interests 
        of small producers; and
            ``(iv) in every practical way, encourage and provide for 
        soil-conserving and soil-rebuilding practices.
        ``(G) Discretionary authorities of secretary.--In carrying out 
    this section, the Secretary may use other approved agencies.
        ``(H) Limitations.--In carrying out this section, the Secretary 
    shall not have the authority to acquire any land or any right or 
    interest in land.''.
    (b) Elimination of FmHA County Committees.--The Consolidated Farm 
and Rural Development Act (7 U.S.C. 1921 et seq.) is amended--
        (1) by striking section 332 (7 U.S.C. 1982); and
        (2) in section 333 (7 U.S.C. 1983)--
            (A) by striking paragraph (2); and
            (B) redesignating paragraphs (3), (4), and (5) as 
        paragraphs (2), (3), and (4), respectively.

          Subtitle C--Rural Economic and Community Development

    SEC. 231. UNDER SECRETARY OF AGRICULTURE FOR RURAL ECONOMIC AND 
      COMMUNITY DEVELOPMENT.
    (a) Authorization.--The Secretary is authorized to establish in the 
Department the position of Under Secretary of Agriculture for Rural 
Economic and Community Development.
    (b) Confirmation Required.--If the Secretary establishes the 
position of Under Secretary of Agriculture for Rural Economic and 
Community Development authorized under subsection (a), the Under 
Secretary shall be appointed by the President, by and with the advice 
and consent of the Senate.
    (c) Functions of Under Secretary.--
        (1) Principal functions.--Upon establishment, the Secretary 
    shall delegate to the Under Secretary of Agriculture for Rural 
    Economic and Community Development those functions under the 
    jurisdiction of the Department that are related to rural economic 
    and community development.
        (2) Additional functions.--The Under Secretary of Agriculture 
    for Rural Economic and Community Development shall perform such 
    other functions as may be required by law or prescribed by the 
    Secretary.
    (d) Succession.--Any official who is serving as Under Secretary of 
Agriculture for Small Community and Rural Development on the date of 
the enactment of this Act and who was appointed by the President, by 
and with the advice and consent of the Senate, shall not be required to 
be reappointed under subsection (b) to the successor position 
authorized under subsection (a) if the Secretary establishes the 
position, and the official occupies the new position, within 180 days 
after the date of the enactment of this Act (or such later date set by 
the Secretary if litigation delays rapid succession).
    (e) Loan Approval Authority.--Approval authority for loans and loan 
guarantees in connection with the electric and telephone loan and loan 
guarantee programs authorized by the Rural Electrification Act of 1936 
(7 U.S.C. 901 et seq.) shall not be transferred to, or conditioned on 
review of, a State director or other employee whose primary duty is not 
the review and approval of such loans or the provision of assistance to 
such borrowers.
    (f) Conforming Amendments.--
        (1) Existing position.--Section 3 of the Rural Development 
    Policy Act of 1980 (7 U.S.C. 2211b) is amended by striking 
    subsection (a).
        (2) Executive schedule.--Section 5314 of title 5, United States 
    Code, is amended by striking ``Under Secretary of Agriculture for 
    Small Community and Rural Development.'' and inserting ``Under 
    Secretary of Agriculture for Rural Economic and Community 
    Development.''.
        (3) Repeal of rural development administration.--Section 364 of 
    the Consolidated Farm and Rural Development Act (7 U.S.C. 2006f) is 
    repealed.

SEC. 232. RURAL UTILITIES SERVICE.

    (a) Establishment Required.--The Secretary shall establish and 
maintain within the Department the Rural Utilities Service and assign 
to the Service such functions as the Secretary considers appropriate.
    (b) Administrator.--
        (1) Appointment.--The Rural Utilities Service shall be headed 
    by an Administrator who shall be appointed by the President, by and 
    with the advice and consent of the Senate.
        (2) Succession.--Any official who is serving as Administrator 
    of the Rural Electrification Administration on the date of the 
    enactment of this Act and who was appointed by the President, by 
    and with the advice and consent of the Senate--
            (A) may be considered to be serving in the successor 
        position established under paragraph (1); and
            (B) shall not be required to be reappointed to that 
        position by reason of the enactment of this Act.
        (3) Executive schedule.--Section 5315 of title 5, United States 
    Code, is amended by adding at the end the following:
        ``Administrator, Rural Utilities Service, Department of 
    Agriculture.''.
    (c) Functions.--The Secretary shall carry out through the Rural 
Utilities Service the following functions that are under the 
jurisdiction of the Department:
        (1) Electric and telephone loan programs and water and waste 
    facility activities authorized by law, including--
            (A) the Rural Electrification Act of 1936 (7 U.S.C. 901 et 
        seq.); and
            (B) section 2322 of the Food, Agriculture, Conservation, 
        and Trade Act of 1990 (7 U.S.C. 1926-1); and
        (2) Water and waste facility programs and activities authorized 
    by law, including--
            (A) sections 306, 306A, 306B, and 306C, the provisions of 
        sections 309 and 309A relating to assets, terms, and conditions 
        of water and sewer programs, section 310B(b)(2), and the 
        amendment made by section 342 of the Consolidated Farm and 
        Rural Development Act (7 U.S.C. 1926, 1926a, 1926b, 1926c, 
        1929, 1929a, 1932(b)(2), and 1013a); and
            (B) section 2324 of the Food, Agriculture, Conservation, 
        and Trade Act of 1990 (7 U.S.C. 1926 note).
    SEC. 233. RURAL HOUSING AND COMMUNITY DEVELOPMENT PSERVICE.
    (a) Establishment Authorized.--Notwithstanding any other provision 
of law, the Secretary is authorized to establish and maintain within 
the Department the Rural Housing and Community Development Service and 
to assign to the Service such functions as the Secretary considers 
appropriate.
    (b) Functions.--If the Secretary establishes the Rural Housing and 
Community Development Service under subsection (a), the Secretary is 
authorized to assign to the Service jurisdiction over the following:
        (1) Programs and activities under title V of the Housing Act of 
    1949 (42 U.S.C. 1471 et seq.).
        (2) Programs and activities authorized under section 310B(i) of 
    the Consolidated Farm and Rural Development Act (7 U.S.C. 1932(i)) 
    and related provisions of law.
        (3) Programs and activities that relate to rural community 
    lending programs, including programs authorized by sections 365 
    through 369 of the Consolidated Farm and Rural Development Act (7 
    U.S.C. 2008-2008d).
    SEC. 234. RURAL BUSINESS AND COOPERATIVE DEVELOPMENT PSERVICE.
    (a) Establishment Authorized.--Notwithstanding any other provision 
of law, the Secretary is authorized to establish and maintain within 
the Department the Rural Business and Cooperative Development Service 
and to assign to the Service such functions as the Secretary considers 
appropriate.
    (b) Functions.--If the Secretary establishes the Rural Business and 
Cooperative Development Service under subsection (a), the Secretary is 
authorized to assign to the Service jurisdiction over the following:
        (1) Section 313 and title V of the Rural Electrification Act of 
    1936 (7 U.S.C. 940c and 950aa et seq.).
        (2) Subtitle G of title XVI of the Food, Agriculture, 
    Conservation, and Trade Act of 1990 (7 U.S.C. 5901 et seq.).
        (3) Sections 306(a)(1) and 310B of the Consolidated Farm and 
    Rural Development Act (7 U.S.C. 1926(a)(1) and 1932).
        (4) Section 1323 of the Food Security Act of 1985 (Public Law 
    99-198; 7 U.S.C. 1932 note).
        (5) The Act of July 2, 1926 (44 Stat. 802, chapter 725; 7 
    U.S.C. 451 et seq.).
    SEC. 235. CONFORMING AMENDMENTS REGARDING RURAL ELECTRIFICATION 
      ADMINISTRATION.
    (a) Amendments to Rural Electrification Act of 1936.--The Rural 
Electrification Act of 1936 (7 U.S.C. 901 et seq.) is amended--
        (1) by striking the first section (7 U.S.C. 901) and inserting 
    the following:

``SECTION 1. SHORT TITLE.

    ``This Act may be cited as the `Rural Electrification Act of 
1936'.'';
        (2) in section 2(a) (7 U.S.C. 902(a)), by striking 
    ``Administrator'' and inserting ``Secretary of Agriculture'';
        (3) in section 3(a) (7 U.S.C. 903(a))--
            (A) by striking ``Administrator, upon the request and 
        approval of the Secretary of Agriculture,'' and inserting 
        ``Secretary''; and
            (B) by striking ``Administrator appointed pursuant to the 
        provisions of this Act or from the Administrator of the Rural 
        Electrification Administration established by Executive Order 
        Numbered 7037'' and inserting ``Secretary'';
        (4) in section 8 (7 U.S.C. 908)--
            (A) by striking ``Administrator authorized to be appointed 
        by this Act'' and inserting ``Secretary''; and
            (B) by striking ``Rural Electrification Administration 
        created by this Act'' and inserting ``Secretary'';
        (5) by striking section 11A (7 U.S.C. 911a);
        (6) in section 13 (7 U.S.C. 913), by inserting before the 
    period at the end the following: ``; and the term `Secretary' shall 
    be deemed to mean the Secretary of Agriculture'';
        (7) in sections 206(b)(2), 306A(b), 311, and 405(b)(1)(A) (7 
    U.S.C. 927(b)(2), 936a(b), 940a, and 945(b)(1)(A)), by striking 
    ``Rural Electrification Administration'' each place it appears and 
    inserting ``Secretary'';
        (8) in sections 305(c)(2)(C)(ii)(II) and 306E(d) (7 U.S.C. 
    935(c)(2)(C)(ii)(II) and 936e(d)), by striking ``Administrator'' 
    and inserting ``Secretary'';
        (9) in section 403(b) (7 U.S.C. 943(b)), by striking ``Rural 
    Electrification Administration or of any other agency of the 
    Department of Agriculture,'' and inserting ``Secretary,'';
        (10) in section 404 (7 U.S.C. 944), by striking ``the 
    Administrator of the Rural Electrification Administration'' and 
    inserting ``the Secretary shall designate an official of the 
    Department of Agriculture who'';
        (11) in sections 406(c) and 410 (7 U.S.C. 946(c) and 950), by 
    striking ``Administrator of the Rural Electrification 
    Administration'' each place it appears and inserting ``Secretary'';
        (12) in the heading of section 501 (7 U.S.C. 950aa), by 
    striking ``of rea administrator''; and
        (13) except as otherwise provided in this subsection, by 
    striking ``Administrator'' each place it appears in such Act and 
    inserting ``Secretary''.
    (b) Miscellaneous Amendments.--(1) Section 236(a) of the Disaster 
Relief Act of 1970 (7 U.S.C. 912a) is amended by striking ``Rural 
Electrification Administration'' and inserting ``Secretary under the 
Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.)''.
    (2) Section 505 of the Department of Agriculture Organic Act of 
1944 (7 U.S.C. 915) is amended--
        (A) by striking ``Rural Electrification Administration'' and 
    inserting ``Secretary of Agriculture''; and
        (B) by striking ``its'' and inserting ``the Secretary's''.
    (3) Section 401 of the Rural Electrification Act of 1938 (7 U.S.C. 
903 note) is amended in the second paragraph by striking 
``Administrator of the Rural Electrification Administration'' and 
inserting ``Secretary of Agriculture''.
    (4) Chapter 1 of subtitle D of title XXIII of the Food, 
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 950aaa et 
seq.), relating to Distance Learning and Medical Link Programs, is 
amended--
        (A) in section 2333--
            (i) by striking paragraph (1); and
            (ii) by redesignating paragraphs (2) through (11) as 
        paragraphs (1) through (10), respectively;
        (B) in section 2334(h)(2), by striking ``section 2333(3)(F)'' 
    and inserting ``section 2333(2)(F)''; and
        (C) by striking ``Administrator'' each place it appears and 
    inserting ``Secretary''.
    (5) Section 306(a)(15) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1926(a)(15)) is amended--
        (A) by striking subparagraph (C); and
        (B) by redesignating subparagraph (D) as subparagraph (C).
    (6) Section 2322(d) of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 1926-1(d)) is amended--
        (A) by striking paragraph (2); and
        (B) by redesignating paragraph (3) as paragraph (2).

           Subtitle D--Food, Nutrition, and Consumer Services

    SEC. 241. UNDER SECRETARY OF AGRICULTURE FOR FOOD, NUTRITION, AND 
      CONSUMER SERVICES.
    (a) Authorization.--The Secretary is authorized to establish in the 
Department the position of Under Secretary of Agriculture for Food, 
Nutrition, and Consumer Services.
    (b) Confirmation Required.--If the Secretary establishes the 
position of Under Secretary of Agriculture for Food, Nutrition, and 
Consumer Services authorized under subsection (a), the Under Secretary 
shall be appointed by the President, by and with the advice and consent 
of the Senate.
    (c) Functions of Under Secretary.--
        (1) Principal functions.--Upon establishment, the Secretary 
    shall delegate to the Under Secretary of Agriculture for Food, 
    Nutrition, and Consumer Services those functions under the 
    jurisdiction of the Department that are related to food, nutrition, 
    and consumer services (except as provided in section 261(b)(1)).
        (2) Additional functions.--The Under Secretary of Agriculture 
    for Food, Nutrition, and Consumer Services shall perform such other 
    functions as may be required by law or Pprescribed by the 
    Secretary.
    (d) Succession.--Any official who is serving as Assistant Secretary 
of Agriculture for Food and Consumer Services on the date of the 
enactment of this Act and who was appointed by the President, by and 
with the advice and consent of the Senate, shall not be required to be 
reappointed under subsection (b) to the successor position authorized 
under subsection (a) if the Secretary establishes the position, and the 
official occupies the new position, within 180 days after the date of 
the enactment of this Act (or such later date set by the Secretary if 
litigation delays rapid succession).
    (e) Executive Schedule.--Section 5314 of title 5, United States 
Code, is amended by inserting after the item relating to the Under 
Secretary of Agriculture for Farm and Foreign Agricultural Services (as 
added by section 225(e)(2)) the following:
        ``Under Secretary of Agriculture for Food, Nutrition, and 
    Consumer Services.''.

             Subtitle E--Natural Resources and Environment

    SEC. 245. UNDER SECRETARY OF AGRICULTURE FOR NATURAL RESOURCES AND 
      ENVIRONMENT.
    (a) Authorization.--The Secretary is authorized to establish in the 
Department the position of Under Secretary of Agriculture for Natural 
Resources and Environment.
    (b) Confirmation Required.--If the Secretary establishes the 
position of Under Secretary of Agriculture for Natural Resources and 
Environment authorized under subsection (a), the Under Secretary shall 
be appointed by the President, by and with the advice and consent of 
the Senate.
    (c) Functions of Under Secretary.--
        (1) Principal functions.--Upon establishment, the Secretary 
    shall delegate to the Under Secretary of Agriculture for Natural 
    Resources and Environment those functions under the jurisdiction of 
    the Department that are related to natural resources and 
    environment (except to the extent those functions are delegated 
    under section 226).
        (2) Additional functions.--The Under Secretary of Agriculture 
    for Natural Resources and Environment shall perform such other 
    functions and duties as may be required by law or prescribed by the 
    Secretary.
    (d) Succession.--Any official who is serving as Assistant Secretary 
of Agriculture for Natural Resources and Environment on the date of the 
enactment of this Act and who was appointed by the President, by and 
with the advice and consent of the Senate, shall not be required to be 
reappointed under subsection (b) to the successor position authorized 
under subsection (a) if the Secretary establishes the position, and the 
official occupies the new position, within 180 days after the date of 
the enactment of this Act (or such later date set by the Secretary if 
litigation delays rapid succession).
    (e) Executive Schedule.--Section 5314 of title 5, United States 
Code, is amended by inserting after the item relating to the Under 
Secretary of Agriculture for Food, Nutrition, and Consumer Services (as 
added by section 241(e)) the following:
        ``Under Secretary of Agriculture for Natural Resources and 
    Environment.''.
    SEC. 246. NATURAL RESOURCES CONSERVATION SERVICE.
    (a) Establishment.--The Secretary is authorized to establish and 
maintain within the Department a Natural Resources Conservation 
Service.
    (b) Functions.--If the Secretary establishes the Natural Resources 
Conservation Service under subsection (a), the Secretary is authorized 
to assign to the Service jurisdiction over the following:
        (1) The rural environmental conservation program under title X 
    of the Agricultural Act of 1970 (16 U.S.C. 1501 et seq.).
        (2) The Great Plains Conservation Program under section 16(b) 
    of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 
    590p(b)).
        (3) The Water Bank Act (16 U.S.C. 1301 et seq.).
        (4) The forestry incentive program under section 4 of the 
    Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 2103).
        (5) Title XII of the Food Security Act of 1985 (16 U.S.C. 3801 
    et seq.), except subchapter B of chapter 1 of subtitle D of such 
    title.
        (6) Salinity control program under section 202(c) of the 
    Colorado River Basin Salinity Control Act (43 U.S.C. 1592(c)).
        (7) The Farms for the Future Act of 1990 (7 U.S.C. 4201 note).
        (8) Such other functions as the Secretary considers 
    appropriate, except functions under subchapter B of chapter 1 of 
    subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 
    3831-3836) and the agricultural conservation program under the Soil 
    Conservation and Domestic Allotment Act (16 U.S.C. 590g et seq.).
    (c) Special Concurrence Requirements for Certain Functions.--In 
carrying out the programs specified in paragraphs (2), (3), (4), and 
(6) of subsection (b) and the program under subchapter C of chapter 1 
of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 
3837-3837f), the Secretary shall--
        (1) acting on the recommendations of the Natural Resources 
    Conservation Service, with the concurrence of the Consolidated Farm 
    Service Agency, issue regulations to carry out such programs;
        (2) ensure that the Natural Resources Conservation Service, in 
    establishing policies, priorities, and guidelines for each such 
    program, does so with the concurrence of the Consolidated Farm 
    Service Agency at national, State, and local levels;
        (3) ensure that, in reaching such concurrence at the local 
    level, the Natural Resources Conservation Service works in 
    cooperation with Soil and Water Conservation Districts or similar 
    organizations established under State law;
        (4) ensure that officials of county and area committees 
    established under section 8(b)(5) of the Soil Conservation and 
    Domestic Allotment Act (16 U.S.C. 590h(b)(5)) meet annually with 
    officials of such Districts or similar organizations to consider 
    local conservation priorities and guidelines; and
        (5) take steps to ensure that the concurrence process does not 
    interfere with the effective delivery of such programs.
    (d) Use of Federal and Non-Federal Employees.--
        (1) Use authorized.--In the implementation of functions 
    assigned to the Natural Resources Conservation Service, the 
    Secretary may use interchangeably in local offices of the Service 
    both Federal employees of the Department and non-Federal employees 
    of county and area committees established under section 8(b)(5) of 
    the Soil Conservation and Domestic Allotment Act (16 U.S.C. 
    590h(b)(5)).
        (2) Exception.--Notwithstanding paragraph (1), no personnel 
    action (as defined in section 2302(a)(2)(A) of title 5, United 
    States Code) may be taken with respect to a Federal employee unless 
    such action is taken by another Federal employee.
    (e) Savings Provision.--For purposes of subsections (c) and (d) of 
this section:
        (1) A reference to the ``Natural Resources Conservation 
    Service'' includes any other office, agency, or administrative unit 
    of the Department assigned the functions authorized for the Natural 
    Resources Conservation Service under this section.
        (2) A reference to the ``Consolidated Farm Service Agency'' 
    includes any other office, agency, or administrative unit of the 
    Department assigned the functions authorized for the Consolidated 
    Farm Service Agency under section 226.
    (f) Conforming Amendments.--
        (1) Soil conservation service.--Section 5 of the Soil 
    Conservation and Domestic Allotment Act (16 U.S.C. 590e) is 
    repealed.
        (2) Soil and water resources conservation.--The Soil and Water 
    Resources Conservation Act of 1977 (16 U.S.C. 2001) is amended--
            (A) in section 2(2) (16 U.S.C. 2001(2))--
                (i) by striking ``created the Soil Conservation 
            Service''; and
                (ii) by striking ``Department of Agriculture which'' 
            and inserting ``, has ensured that the Department of 
            Agriculture'';
            (B) in section 3(2) (16 U.S.C. 2002(2)), by striking 
        ``through the Soil Conservation Service''; and
            (C) in section 6(a) (16 U.S.C. 2005(a)), by striking ``Soil 
        Conservation Service'' and inserting ``Secretary''.
        (3) State technical committees.--Section 1262 of the Food 
    Security Act of 1985 (16 U.S.C. 3862) is amended by adding at the 
    end the following new subsection:
    ``(e) FACA Requirements.--The committees established under section 
1261 shall be exempt from the Federal Advisory Committee Act (5 U.S.C. 
App.).''.

SEC. 247. REORGANIZATION OF FOREST SERVICE.

    (a) Required Elements of Reorganization Proposals.--Reorganization 
proposals that are developed by the Secretary to carry out the 
designation by the President of the Forest Service as a Reinvention Lab 
pursuant to the National Performance Review, dated September 1993, 
shall include proposals for--
        (1) reorganizing the Service in a manner that is consistent 
    with the principles of interdisciplinary planning;
        (2) redefining and consolidating the mission and roles of, and 
    research conducted by, employees of the Service in connection with 
    the National Forest System and State and private forestry to 
    facilitate interdisciplinary planning and to eliminate 
    functionalism;
        (3) reforming the budget structure of the Service to support 
    interdisciplinary planning, including reducing the number of budget 
    line items;
        (4) defining new measures of accountability so that Congress 
    may meet the constitutional obligation of Congress to oversee the 
    Service;
        (5) achieving structural and organizational consolidations;
        (6) to the extent practicable, sharing office space, equipment, 
    vehicles, and electronic systems with other administrative units of 
    the Department and other Federal field offices, including proposals 
    for using an on-line system by all administrative units of the 
    Department to maximize administrative efficiency; and
        (7) reorganizing the Service in a manner that will result in a 
    larger percentage of employees of the Service being retained at 
    organizational levels below regional offices, research stations, 
    and the area office of the Service.
    (b) Report.--Not later than March 31, 1995, the Secretary shall 
submit a report to the Committee on Agriculture of the House of 
Representatives and the Committee on Agriculture, Nutrition, and 
Forestry of the Senate that describes actions taken to carry out 
subsection (a), identifies any disparities in regional funding 
patterns, and contains the rationale behind the disparities.

             Subtitle F--Research, Education, and Economics

    SEC. 251. UNDER SECRETARY OF AGRICULTURE FOR RESEARCH, EDUCATION, 
      AND ECONOMICS.
    (a) Authorization.--The Secretary is authorized to establish in the 
Department the position of Under Secretary of Agriculture for Research, 
Education, and Economics.
    (b) Confirmation Required.--If the Secretary establishes the 
position of Under Secretary of Agriculture for Research, Education, and 
Economics authorized under subsection (a), the Under Secretary shall be 
appointed by the President, by and with the advice and consent of the 
Senate.
    (c) Functions of Under Secretary.--
        (1) Principal functions.--Upon establishment, the Secretary 
    shall delegate to the Under Secretary of Agriculture for Research, 
    Education, and Economics those functions and duties under the 
    jurisdiction of the Department that are related to research, 
    education, and economics.
        (2) Additional functions.--The Under Secretary of Agriculture 
    for Research, Education, and Economics shall perform such other 
    functions and duties as may be required by law or prescribed by the 
    Secretary.
    (d) Cooperative State Research, Education, and Extension Service.--
        (1) Establishment.--There is established in the Department a 
    Cooperative State Research, Education, and Extension Service.
        (2) Functions.--The Secretary shall delegate to the Cooperative 
    State Research, Education, and Extension Service functions related 
    to cooperative State research programs and cooperative extension 
    and education programs that are under the jurisdiction of the 
    Department.
        (3) Officer-in-charge.--If the Secretary establishes the 
    position of Under Secretary of Agriculture for Research, Education, 
    and Economics, the officer in charge of the Cooperative State 
    Research, Education, and Extension Service shall report directly to 
    the Under Secretary.
    (e) Executive Schedule.--Section 5314 of title 5, United States 
Code, is amended by inserting after the item relating to the Under 
Secretary of Agriculture for Natural Resources and Environment (as 
added by section 245(e)) the following:
        ``Under Secretary of Agriculture for Research, Education, and 
    Economics.''.

SEC. 252. PROGRAM STAFF.

    In making the personnel reductions required under section 213, the 
Secretary shall reduce the number of Federal research and education 
personnel of the Department by a percentage equal to at least the 
percentage of overall Department personnel reductions. The Secretary 
shall achieve such reduction in research and education personnel in a 
manner that minimizes duplication Pand maximizes coordination between 
Federal and State research and extension activities.

                        Subtitle G--Food Safety

    SEC. 261. UNDER SECRETARY OF AGRICULTURE FOR FOOD SAFETY.
    (a) Establishment.--There is established in the Department of 
Agriculture the position of Under Secretary of Agriculture for Food 
Safety. The Under Secretary shall be appointed by the President, by and 
with the advice and consent of the Senate, from among individuals with 
specialized training or significant experience in food safety or public 
health programs.
    (b) Functions of Under Secretary.--
        (1) Principal functions.--The Secretary shall delegate to the 
    Under Secretary of Agriculture for Food Safety those functions and 
    duties under the jurisdiction of the Department that are primarily 
    related to food safety.
        (2) Additional functions.--The Under Secretary of Agriculture 
    for Food Safety shall perform such other functions and duties as 
    may be required by law or prescribed by the Secretary.
    (c) Executive Schedule.--Section 5314 of title 5, United States 
Code, is amended by inserting after the item relating to the Under 
Secretary of Agriculture for Research, Education, and Economics (as 
added by section 251(e)) the following:
        ``Under Secretary of Agriculture for Food Safety.''.
    (d) Technical and Scientific Review Groups.--The Secretary, acting 
through the Under Secretary for Research, Education, and Economics, 
may, without regard to the provisions of title 5, United States Code, 
governing appointment in the competitive service, and without regard to 
the provisions of chapter 51 and subchapter III of chapter 53 of title 
5, United States Code, relating to classification and General Schedule 
pay rates--
        (1) establish such technical and scientific review groups as 
    are needed to carry out the functions of the Department; and
        (2) appoint and pay the members of the groups, except that 
    officers and employees of the United States shall not receive 
    additional compensation for service as a member of a group.
    SEC. 262. CONDITIONS FOR IMPLEMENTATION OF ALTERATIONS IN THE LEVEL 
      OF ADDITIVES ALLOWED IN ANIMAL DIETS.
    (a) Conditions.--The Food and Drug Administration shall not 
implement or enforce the final rule described in subsection (b) to 
alter the level of selenium allowed to be used as a supplement in 
animal diets unless the Commissioner of the Food and Drug 
Administration makes a determination that--
        (1) selenium additives are not essential, at levels authorized 
    in the absence of such final rule, to maintain animal nutrition and 
    protect animal health;
        (2) selenium at such levels is not safe to the animals 
    consuming the additive;
        (3) selenium at such levels is not safe to individuals 
    consuming edible portions of animals that receive the additive;
        (4) selenium at such levels does not achieve its intended 
    effect of promoting normal growth and reproduction of livestock and 
    poultry; and
        (5) the manufacture and use of selenium at such levels cannot 
    reasonably be controlled by adherence to current good manufacturing 
    practice requirements.
    (b) Final Rule Described.--The final rule referred to in subsection 
(a) is the final rule issued by the Food and Drug Administration and 
published in the Federal Register on September 13, 1993 (58 Fed. Reg. 
47962), in which the Administration stayed 1987 amendments to the 
selenium food additive regulations, and any modification of such rule 
issued after the date of the enactment of this Act.

                 Subtitle H--National Appeals Division

SEC. 271. DEFINITIONS.

    For purposes of this subtitle:
        (1) Adverse decision.--The term ``adverse decision'' means an 
    administrative decision made by an officer, employee, or committee 
    of an agency that is adverse to a participant. The term includes a 
    denial of equitable relief by an agency or the failure of an agency 
    to issue a decision or otherwise act on the request or right of the 
    participant. The term does not include a decision over which the 
    Board of Contract Appeals has jurisdiction.
        (2) Agency.--The term ``agency'' means any agency of the 
    Department designated by the Secretary or a successor agency of the 
    Department, except that the term shall include the following (and 
    any successor to the following):
            (A) The Consolidated Farm Service Agency (or other office, 
        agency, or administrative unit of the Department assigned the 
        functions authorized for the Consolidated Farm Service Agency 
        under section 226).
            (B) The Commodity Credit Corporation, with respect to 
        domestic programs.
            (C) The Farmers Home Administration.
            (D) The Federal Crop Insurance Corporation.
            (E) The Rural Development Administration.
            (F) The Natural Resources Conservation Service (or other 
        office, agency, or administrative unit of the Department 
        assigned the functions authorized for the Natural Resources 
        Conservation Service under section 246(b)).
            (G) A State, county, or area committee established under 
        section 8(b)(5) of the Soil Conservation and Domestic Allotment 
        Act (16 U.S.C. 590h(b)(5)).
        (3) Appellant.--The term ``appellant'' means a participant who 
    appeals an adverse decision in accordance with this subtitle.
        (4) Case record.--The term ``case record'' means all the 
    materials maintained by the Secretary related to an adverse 
    decision.
        (5) Director.--The term ``Director'' means the Director of the 
    Division.
        (6) Division.--The term ``Division'' means the National Appeals 
    Division established by this title.
        (7) Hearing officer.--The term ``hearing officer'' means an 
    individual employed by the Division who hears and determines 
    appeals of adverse decisions by any agency.
        (8) Implement.--The term ``implement'' refers to those actions 
    necessary to effectuate fully and promptly a final determination of 
    the Division not later than 30 calendar days after the effective 
    date of the final determination.
        (9) Participant.--The term ``participant'' shall have the 
    meaning given that term by the Secretary by regulation.

SEC. 272. NATIONAL APPEALS DIVISION AND DIRECTOR.

    (a) Establishment of Division.--The Secretary shall establish and 
maintain an independent National Appeals Division within the Department 
to carry out this subtitle.
    (b) Director.--
        (1) Appointment.--The Division shall be headed by a Director, 
    appointed by the Secretary from among persons who have substantial 
    experience in practicing administrative law. In considering 
    applicants for the position of Director, the Secretary shall 
    consider persons currently employed outside Government as well as 
    Government employees.
        (2) Term and removal.--The Director shall serve for a 6-year 
    term of office, and shall be eligible for reappointment. The 
    Director shall not be subject to removal during the term of office, 
    except for cause established in accordance with law.
        (3) Position classification.--The position of the Director may 
    not be a position in the excepted service or filled by a noncareer 
    appointee.
    (c) Direction, Control, and Support.--The Director shall be free 
from the direction and control of any person other than the Secretary. 
The Division shall not receive administrative support (except on a 
reimbursable basis) from any agency other than the Office of the 
Secretary. The Secretary may not delegate to any other officer or 
employee of the Department, other than the Director, the authority of 
the Secretary with respect to the Division.
    (d) Determination of Appealability of Agency Decisions.--If an 
officer, employee, or committee of an agency determines that a decision 
is not appealable and a participant appeals the decision to the 
Director, the Director shall determine whether the decision is adverse 
to the individual participant and thus appealable or is a matter of 
general applicability and thus not subject to appeal. The determination 
of the Director as to whether a decision is appealable shall be 
administratively final.
    (e) Division Personnel.--The Director shall appoint such hearing 
officers and other employees as are necessary for the administration of 
the Division. A hearing officer or other employee of the Division shall 
have no duties other than those that are necessary to carry out this 
subtitle.

SEC. 273. TRANSFER OF FUNCTIONS.

    There are transferred to the Division all functions exercised and 
all administrative appeals pending before the effective date of this 
subtitle (including all related functions of any officer or employee) 
of or relating to--
        (1) the National Appeals Division established by section 426(c) 
    of the Agricultural Act of 1949 (7 U.S.C. 1433e(c)) (as in effect 
    on the day before the date of the enactment of this Act);
        (2) the National Appeals Division established by subsections 
    (d) through (g) of section 333B of the Consolidated Farm and Rural 
    Development Act (7 U.S.C. 1983b) (as in effect on the day before 
    the date of the enactment of this Act);
        (3) appeals of decisions made by the Federal Crop Insurance 
    Corporation; and
        (4) appeals of decisions made by the Soil Conservation Service 
    (as in effect on the day before the date of the enactment of this 
    Act).

SEC. 274. NOTICE AND OPPORTUNITY FOR HEARING.

    Not later than 10 working days after an adverse decision is made 
that affects the participant, the Secretary shall provide the 
participant with written notice of such adverse decision and the rights 
available to the participant under this subtitle or other law for the 
review of such adverse decision.

SEC. 275. INFORMAL HEARINGS.

    If an officer, employee, or committee of an agency makes an adverse 
decision, the agency shall hold, at the request of the participant, an 
informal hearing on the decision. With respect to programs carried out 
through the Consolidated Farm Service Agency (or other office, agency, 
or administrative unit of the Department assigned to carry out the 
programs authorized for the Consolidated Farm Service Agency under 
section 226), the Secretary shall maintain the informal appeals process 
applicable to such programs, as in effect on the date of the enactment 
of the subtitle. If a mediation program is available under title V of 
the Agricultural Credit Act of 1987 (7 U.S.C. 5101 et seq.) as a part 
of the informal hearing process, the participant shall be offered the 
right to choose such mediation.

SEC. 276. RIGHT OF PARTICIPANTS TO DIVISION HEARING.

    (a) Appeal to Division for Hearing.--Subject to subsection (b), a 
participant shall have the right to appeal an adverse decision to the 
Division for an evidentiary hearing by a hearing officer consistent 
with section 277.
    (b) Time for Appeal.--To be entitled to a hearing under section 
277, a participant shall request the hearing not later than 30 days 
after the date on which the participant first received notice of the 
adverse decision.

SEC. 277. DIVISION HEARINGS.

    (a) General Powers of Director and Hearing Officers.--
        (1) Access to case record.--The Director and hearing officer 
    shall have access to the case record of any adverse decision 
    appealed to the Division for a hearing.
        (2) Administrative procedures.--The Director and hearing 
    officer shall have the authority to require the attendance of 
    witnesses, and the production of evidence, by subpoena and to 
    administer oaths and affirmations. Except to the extent required 
    for the disposition of ex parte matters as authorized by law--
            (A) an interested person outside the Division shall not 
        make or knowingly cause to be made to the Director or a hearing 
        officer who is or may reasonably be expected to be involved in 
        the evidentiary hearing or review of an adverse decision, an ex 
        parte communication (as defined in section 551(14) of title 5, 
        United States Code) relevant to the merits of the proceeding;
            (B) the Director and such hearing officer shall not make or 
        knowingly cause to be made to any interested person outside the 
        Division an ex parte communication relevant to the merits of 
        the proceeding.
    (b) Time for Hearing.--Upon a timely request for a hearing under 
section 276(b), an appellant shall have the right to have a hearing by 
the Division on the adverse decision within 45 days after the date of 
the receipt of the request for the hearing.
    (c) Location and Elements of Hearing.--
        (1) Location.--A hearing on an adverse decision shall be held 
    in the State of residence of the appellant or at a location that is 
    otherwise convenient to the appellant and the Division.
        (2) Evidentiary hearing.--The evidentiary hearing before a 
    hearing officer shall be in person, unless the appellant agrees to 
    a hearing by telephone or by a review of the case record. The 
    hearing officer shall not be bound by previous findings of fact by 
    the agency in making a determination.
        (3) Information at hearing.--The hearing officer shall consider 
    information presented at the hearing without regard to whether the 
    evidence was known to the agency officer, employee, or committee 
    making the adverse decision at the time the adverse decision was 
    made. The hearing officer shall leave the record open after the 
    hearing for a reasonable period of time to allow the submission of 
    information by the appellant or the agency after the hearing to the 
    extent necessary to respond to new facts, information, arguments, 
    or evidence presented or raised by the agency or appellant.
        (4) Burden of proof.--The appellant shall bear the burden of 
    proving that the adverse decision of the agency was erroneous.
    (d) Determination Notice.--The hearing officer shall issue a notice 
of the determination on the appeal not later than 30 days after a 
hearing or after receipt of the request of the appellant to waive a 
hearing, except that the Director may establish an earlier or later 
deadline. If the determination is not appealed to the Director for 
review under section 278, the notice provided by the hearing officer 
shall be considered to be a notice of an administratively final 
determination.
    (e) Effective Date.--The final determination shall be effective as 
of the date of filing of an application, the date of the transaction or 
event in question, or the date of the original adverse decision, 
whichever is applicable.
    SEC. 278. DIRECTOR REVIEW OF DETERMINATIONS OF HEARING POFFICERS.
    (a) Requests for Director Review.--
        (1) Time for request by appellant.--Not later than 30 days 
    after the date on which an appellant receives the determination of 
    a hearing officer under section 277, the appellant shall submit a 
    written request to the Director for review of the determination in 
    order to be entitled to a review by the Director of the 
    determination.
        (2) Time for request by agency head.--Not later than 15 
    business days after the date on which an agency receives the 
    determination of a hearing officer under section 277, the head of 
    the agency may make a written request that the Director review the 
    determination.
    (b) Determination of Director.--The Director shall conduct a review 
of the determination of the hearing officer using the case record, the 
record from the evidentiary hearing under section 277, the request for 
review, and such other arguments or information as may be accepted by 
the Director. Based on such review, the Director shall issue a final 
determination notice that upholds, reverses, or modifies the 
determination of the hearing officer. PHowever, if the Director 
determines that the hearing record is inadequate, the Director may 
remand all or a portion of the determination for further proceedings to 
complete the hearing record or, at the option of the Director, to hold 
a new hearing. The Director shall complete the review and either issue 
a final determination or remand the determination not later than--
        (1) 10 business days after receipt of the request for review, 
    in the case of a request by the head of an agency for Preview; or
        (2) 30 business days after receipt of the request for review, 
    in the case of a request by an appellant for review.
    (c) Basis for Determination.--The determination of the hearing 
officer and the Director shall be based on information from the case 
record, laws applicable to the matter at issue, and applicable 
regulations published in the Federal Register and in effect on the date 
of the adverse decision or the date on which the acts that gave rise to 
the adverse decision occurred, whichever date is appropriate.
    (d) Equitable Relief.--Subject to regulations issued by the 
Secretary, the Director shall have the authority to grant equitable 
relief under this section in the same manner and to the same extent as 
such authority is provided to the Secretary under section 326 of the 
Food and Agriculture Act of 1962 (7 U.S.C. 1339a) and other laws. 
Notwithstanding the administrative finality of a final determination of 
an appeal by the Division, the Secretary shall have the authority to 
grant equitable or other types of relief to the appellant after an 
administratively final determination is issued by the Division.
    (e) Effective Date.--A final determination issued by the Director 
shall be effective as of the date of filing of an application, the date 
of the transaction or event in question, or the date of the original 
adverse decision, whichever is applicable.

SEC. 279. JUDICIAL REVIEW.

    A final determination of the Division shall be reviewable and 
enforceable by any United States district court of competent 
jurisdiction in accordance with chapter 7 of title 5, United States 
Code.
    SEC. 280. IMPLEMENTATION OF FINAL DETERMINATIONS OF PDIVISION.
    On the return of a case to an agency pursuant to the final 
determination of the Division, the head of the agency shall implement 
the final determination not later than 30 days after the effective date 
of the notice of the final determination.
    SEC. 281. CONFORMING AMENDMENTS RELATING TO NATIONAL APPEALS 
      DIVISION.
    (a) Decisions of State, County, and Area Committees.--
        (1) Application of subsection.--This subsection shall apply 
    only with respect to functions of the Consolidated Farm Service 
    Agency or the Commodity Credit Corporation that are under the 
    jurisdiction of a State, county, or area committee established 
    under section 8(b)(5) of the Soil Conservation and Domestic 
    Allotment Act (16 U.S.C. 590h(b)(5)) or an employee of such a 
    committee.
        (2) Finality.--Each decision of a State, county, or area 
    committee (or an employee of such a committee) covered by paragraph 
    (1) that is made in good faith in the absence of misrepresentation, 
    false statement, fraud, or willful misconduct shall be final not 
    later than 90 days after the date of filing of the application for 
    benefits, unless the decision is--
            (A) appealed under this subtitle; or
            (B) modified by the Administrator of the Consolidated Farm 
        Service Agency or the Executive Vice President of the Commodity 
        Credit Corporation.
        (3) Recovery of amounts.--If the decision of the State, county, 
    or area committee has become final under paragraph (2), no action 
    may be taken by the Consolidated Farm Service Agency, the Commodity 
    Credit Corporation, or a State, county, or area committee to 
    recover amounts found to have been disbursed as a result of a 
    decision in error unless the participant had reason to believe that 
    the decision was erroneous.
        (4) Savings provision.--For purposes of this subsection, a 
    reference to the ``Consolidated Farm Service Agency'' includes any 
    other office, agency, or administrative unit of the Department 
    assigned the functions authorized for the Consolidated Farm Service 
    Agency under section 226.
    (b) Agricultural Stabilization and Conservation Service.--Section 
426 of the Agricultural Act of 1949 (7 U.S.C. 1433e) is repealed.
    (c) Farmers Home Administration.--Section 333B of the Consolidated 
Farm and Rural Development Act (7 U.S.C. 1983b) is repealed.
    SEC. 282. EXPANSION OF ISSUES COVERED BY STATE MEDIATION PROGRAMS.
    (a) Expansion of Mediation Programs.--Section 501 of the 
Agricultural Credit Act of 1987 (7 U.S.C. 5101) is amended--
        (1) in subsection (a), by striking ``an agricultural loan 
    mediation program'' and inserting ``a mediation program'';
        (2) in subsection (b), by striking ``agricultural loan''; and
        (3) by striking subsection (c) and inserting the following new 
    subsection:
    ``(c) Requirements of State Mediation Programs.--
        ``(1) Issues covered.--To be certified as a qualifying State, 
    the mediation program of the State must provide mediation services 
    for the persons described in paragraph (2) who are involved in 
    agricultural loans or agricultural loans and one or more of the 
    following issues under the jurisdiction of the Department of 
    Agriculture:
            ``(A) Wetlands determinations.
            ``(B) Compliance with farm programs, including conservation 
        programs.
            ``(C) Agricultural credit.
            ``(D) Rural water loan programs.
            ``(E) Grazing on National Forest System lands.
            ``(F) Pesticides.
            ``(G) Such other issues as the Secretary considers 
        appropriate.
        ``(2) Persons eligible for mediation.--The persons referred to 
    in paragraph (1) are producers, their creditors (if applicable), 
    and other persons directly affected by actions of the Department of 
    Agriculture.
        ``(3) Certification conditions.--The Secretary shall certify a 
    State as a qualifying State with respect to the issues proposed to 
    be covered by the mediation program of the State if the mediation 
    program--
            ``(A) provides for mediation services that, if decisions 
        are reached, result in mediated, mutually agreeable decisions 
        between the parties to the mediation;
            ``(B) is authorized or administered by an agency of the 
        State government or by the Governor of the State;
            ``(C) provides for the training of mediators;
            ``(D) provides that the mediation sessions shall be 
        confidential;
            ``(E) ensures, in the case of agricultural loans, that all 
        lenders and borrowers of agricultural loans receive adequate 
        notification of the mediation program; and
            ``(F) ensures, in the case of other issues covered by the 
        mediation program, that persons directly affected by actions of 
        the Department of Agriculture receive adequate notification of 
        the mediation program.''.
    (b) Participation of Department.--Section 503 of such Act (7 U.S.C. 
5103) is amended--
        (1) by striking ``agricultural loan'' each place it appears;
        (2) in the matter preceding subparagraph (A) of subsection 
    (a)(1)--
            (A) by inserting ``or agency'' after ``program''; and
            (B) by striking ``that makes, guarantees, or insures 
        agricultural loans'';
        (3) in subsection (a)(1)(A)--
            (A) by inserting ``or agency'' after ``such program''; and
            (B) by inserting ``certified under section 501'' after 
        ``mediation program'';
        (4) in subsection (a)(1)(B)--
            (A) by striking ``, effective beginning on the date of the 
        enactment of this Act,''; and
            (B) by inserting ``certified under section 501'' after 
        ``mediation programs''; and
        (5) in subsection (a)(1)(C)--
            (A) in clause (i), by striking ``described in'' and 
        inserting ``certified under''; and
            (B) in clause (ii), by inserting ``if applicable,'' before 
        ``present''.
    (c) Regulations.--Section 504 of such Act (7 U.S.C. 5104) is 
amended--
        (1) by striking ``Within 150 days after the date of the 
    enactment of this Act, the'' and inserting ``The''; and
        (2) by adding at the end the following new sentence: ``The 
    regulations prescribed by the Secretary shall require qualifying 
    States to adequately train mediators to address all of the issues 
    covered by the mediation program of the State.''.
    (d) Report.--Section 505 of such Act (7 U.S.C. 5105) is Pamended by 
striking ``1990'' and inserting ``1998''.
    (e) Authorization of Appropriations.--Section 506 of such Act (7 
U.S.C. 5106) is amended by striking ``1995'' and inserting ``2000''.
    (f) Conforming Amendments.--
        (1) References to agricultural loans.--Subtitle A of title V of 
    such Act is amended--
            (A) in sections 502 and 505(1) (7 U.S.C. 5102, 5105(1)), by 
        striking ``agricultural loan'' each place it appears; and
            (B) in section 505(3) (7 U.S.C. 5105(3)), by striking ``an 
        agricultural loan mediation'' and inserting ``a Pmediation''.
        (2) Waiver of farm credit system mediation rights by 
    borrowers.--Section 4.14E of the Farm Credit Act of 1971 (12 U.S.C. 
    2202e) is amended by striking ``agricultural loan''.
        (3) Waiver of fmha mediation rights by borrowers.--Section 358 
    of the Consolidated Farm and Rural Development Act (7 U.S.C. 2006) 
    is amended by striking ``agricultural loan''.

SEC. 283. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated such sums as may be 
necessary to carry out the activities of the Division.

          Subtitle I--Miscellaneous Reorganization Provisions

    SEC. 291. SUCCESSORSHIP PROVISIONS RELATING TO BARGAINING UNITS AND 
      EXCLUSIVE REPRESENTATIVES.
    (a) Voluntary Agreement.--
        (1) In general.--If the exercise of the Secretary's authority 
    under this title results in changes to an existing bargaining unit 
    that has been certified under chapter 71 of title 5, United States 
    Code, the affected parties shall attempt to reach a voluntary 
    agreement on a new bargaining unit and an exclusive representative 
    for such unit.
        (2) Criteria.--In carrying out the requirements of this 
    subsection, the affected parties shall use criteria set forth in--
            (A) sections 7103(a)(4), 7111(e), 7111(f)(1), and 7120 of 
        title 5, United States Code, relating to determining an 
        exclusive representative; and
            (B) section 7112 of title 5, United States Code 
        (disregarding subsections (b)(5) and (d) thereof), relating to 
        determining appropriate units.
    (b) Effect of an Agreement.--
        (1) In general.--If the affected parties reach agreement on the 
    appropriate unit and the exclusive representative for such unit 
    under subsection (a), the Federal Labor Relations Authority shall 
    certify the terms of such agreement, subject to paragraph (2)(A). 
    Nothing in this subsection shall be considered to require the 
    holding of any hearing or election as a condition for 
    certification.
        (2) Restrictions.--
            (A) Conditions requiring noncertification.--The Federal 
        Labor Relations Authority may not certify the terms of an 
        agreement under paragraph (1) if--
                (i) it determines that any of the criteria referred to 
            in subsection (a)(2) (disregarding section 7112(a) of title 
            5, United States Code) have not been met; or
                (ii) after the Secretary's exercise of authority and 
            before certification under this section, a valid election 
            under section 7111(b) of title 5, United States Code, is 
            held covering any employees who would be included in the 
            unit proposed for certification.
            (B) Temporary waiver of provision that would bar an 
        election after a collective bargaining agreement is reached.--
        Nothing in section 7111(f)(3) of title 5, United States Code, 
        shall prevent the holding of an election under section 7111(b) 
        of such title that covers employees within a unit certified 
        under paragraph (1), or giving effect to the results of such an 
        election (including a decision not to be represented by any 
        labor organization), if the election is held before the end of 
        the 12-month period beginning on the date such unit is so 
        certified.
            (C) Clarification.--The certification of a unit under 
        paragraph (1) shall not, for purposes of the last sentence of 
        section 7111(b) of title 5, United States Code, or section 
        7111(f)(4) of such title, be treated as if it had occurred 
        pursuant to an election.
        (3) Delegation.--
            (A) In general.--The Federal Labor Relations Authority may 
        delegate to any regional director (as referred to in section 
        7105(e) of title 5, United States Code) its authority under the 
        preceding provisions of this subsection.
            (B) Review.--Any action taken by a regional director under 
        subparagraph (A) shall be subject to review under the 
        provisions of section 7105(f) of title 5, United States Code, 
        in the same manner as if such action had been taken under 
        section 7105(e) of such title, except that in the case of a 
        decision not to certify, such review shall be required if 
        application therefor is filed by an affected party within the 
        time specified in such provisions.
    (c) Definition.--For purposes of this section, the term ``affected 
party'' means--
        (1) with respect to an exercise of authority by the Secretary 
    under this title, any labor organization affected thereby; and
        (2) the Department of Agriculture.
    SEC. 292. PURCHASE OF AMERICAN-MADE EQUIPMENT AND PPRODUCTS.
    (a) Sense of Congress.--It is the sense of the Congress that, to 
the greatest extent practicable, all equipment and products purchased 
using funds made available pursuant to this title should be American-
made.
    (b) Notice Requirement.--In providing financial assistance to, or 
entering into any contract with, any entity using funds made available 
pursuant to this title, the Secretary, to the greatest extent 
practicable, shall provide to such entity a notice describing the 
statement made in subsection (a) by the Congress.

SEC. 293. MISCELLANEOUS CONFORMING AMENDMENTS.

    (a) United States Grain Standards Act.--The United States Grain 
Standards Act (7 U.S.C. 71 et seq.) is amended--
        (1) in section 3 (7 U.S.C. 75)--
            (A) by inserting ``and'' at the end of subsection (y);
            (B) by striking subsections (z) and (aa); and
            (C) by redesignating subsection (bb) as subsection (z);
        (2) by striking section 3A (7 U.S.C. 75a);
        (3) in section 5(b) (7 U.S.C. 77(b)), by striking ``Service 
    employees'' and inserting ``employees of the Secretary'';
        (4) in sections 7(j)(2) and 7A(l)(2) (7 U.S.C. 79(j)(2) and 
    79a(l)(2)), by striking ``supervision by Service personnel of its 
    field office personnel'' in the first sentence of both sections and 
    inserting ``supervision by the Secretary of the Secretary's field 
    office personnel'';
        (5) in section 12(c) (7 U.S.C. 87a(c)), by striking ``or 
    Administrator'';
        (6) in section 12(d) (7 U.S.C. 87a(d)), by striking ``or the 
    Administrator'';
        (7) except as otherwise provided in this subsection, by 
    striking ``Administrator'' each place it appears and inserting 
    ``Secretary''; and
        (8) except as otherwise provided in this subsection, by 
    striking ``Service'' each place it appears and inserting 
    P``Secretary''.
    (b) Packers and Stockyards Act, 1921.--Section 407 of the Packers 
and Stockyards Act, 1921 (7 U.S.C. 228), is amended--
        (1) by striking subsection (b);
        (2) by redesignating subsections (c), (d), (e), and (f), as 
    subsections (b), (c), (d), and (e), respectively; and
        (3) in subsection (e) (as so redesignated), by striking 
    ``subsection (e)'' and inserting ``subsection (d)''.
    SEC. 294. REMOVAL OF OBSOLETE ADMINISTRATIVE PROVISIONS.
    Section 5316 of title 5, United States Code, is amended--
        (1) by striking ``Administrator, Agricultural Marketing 
    Service, Department of Agriculture.'';
        (2) by striking ``Administrator, Agricultural Research Service, 
    Department of Agriculture.'';
        (3) by striking ``Administrator, Agricultural Stabilization and 
    Conservation Service, Department of Agriculture.'';
        (4) by striking ``Administrator, Farmers Home 
    Administration.'';
        (5) by striking ``Administrator, Foreign Agricultural Service, 
    Department of Agriculture.'';
        (6) by striking ``Administrator, Rural Electrification 
    Administration, Department of Agriculture.'';
        (7) by striking ``Administrator, Soil Conservation Service, 
    Department of Agriculture.'';
        (8) by striking ``Chief Forester of the Forest Service, 
    Department of Agriculture.'';
        (9) by striking ``Director of Science and Education, Department 
    of Agriculture.'';
        (10) by striking ``Administrator, Animal and Plant Health 
    Inspection Service, Department of Agriculture.''; and
        (11) by striking ``Administrator, Federal Grain Inspection 
    Service, Department of Agriculture.''.

SEC. 295. PROPOSED CONFORMING AMENDMENTS.

    Not later than 180 days after the date of the enactment of this 
Act, the Secretary shall submit to Congress recommended legislation 
containing additional technical and conforming amendments to Federal 
laws that are required as a result of the enactment of this title.

SEC. 296. TERMINATION OF AUTHORITY.

    (a) In General.--Subject to subsection (b), the authority delegated 
to the Secretary by this title to reorganize the Department shall 
terminate on the date that is 2 years after the date of enactment of 
this Act.
    (b) Functions.--Subsection (a) shall not affect--
        (1) the authority of the Secretary to continue to carry out a 
    function that the Secretary performs on the date that is 2 years 
    after the date of enactment of this Act;
        (2) the authority delegated to the Secretary under 
    Reorganization Plan No. 2 of 1953 (5 U.S.C. App.; 7 U.S.C. 2201 
    note); or
        (3) the authority of an agency, office, officer, or employee of 
    the Department to continue to perform all functions delegated or 
    assigned to the entity or person as of that termination date.

                        TITLE III--MISCELLANEOUS

SEC. 301. POULTRY LABELING.

    It is the sense of Congress that--
        (1) the United States Department of Agriculture should--
            (A) carry out the plans of the Department to hold public 
        hearings for the purpose of receiving public input on issues 
        related to the conditions under which poultry sold in the 
        United States may be labeled ``fresh''; and
            (B) finalize and publish a decision on the issues as 
        expeditiously as possible after holding the hearings; and
        (2) no person serving on the expert advisory committee 
    established to advise the Secretary of Agriculture on the issues 
    should stand to profit, or represent any interest that would stand 
    to profit, from the decision of the Department on the issues.
    SEC. 302. FIRST AMENDMENT RIGHTS OF EMPLOYEES OF THE UNITED STATES 
      DEPARTMENT OF AGRICULTURE.
    Notwithstanding any other provision of law, no employee of the 
United States Department of Agriculture shall be peremptorily removed, 
on or after February 15, 1994, from the position of the employee 
without an opportunity for a public or nonpublic hearing, at the option 
of the employee, because of remarks made during personal time in 
opposition to policies, or proposed policies, of the Department, 
including policies or proposed policies regarding homosexuals. Any 
employee removed on or after February 15, 1994, without the opportunity 
for such a hearing shall be reinstated to the position of the employee 
pending such a hearing.

SEC. 303. ADJUSTED COST OF THRIFTY FOOD PLAN.

    (a) In General.--Section 3(o)(11) of the Food Stamp Act of 1977 (7 
U.S.C. 2012(o)(11)) is amended by inserting ``and (in the case of 
households residing in Alaska) on October 1, 1994,'' after ``1992,''.
    (b) Effective Date.--The amendment made by subsection (a) shall be 
effective beginning on September 30, 1994.

SEC. 304. OFFICE OF RISK ASSESSMENT AND COST-BENEFIT ANALYSIS.

    (a) Office of Risk Assessment and Cost-Benefit Analysis.--The 
Secretary of Agriculture shall establish in the Department of 
Agriculture an Office of Risk Assessment and Cost-Benefit Analysis, 
which shall be under the direction of a Director appointed by the 
Secretary.
    (b) Functions.--The Director shall ensure that any regulatory 
analysis that is conducted under this section includes a risk 
assessment and cost-benefit analysis that is performed consistently and 
uses reasonably obtainable and sound scientific, technical, economic, 
and other data.
        (1) In general.--Effective six months after the date of 
    enactment of this Act, the Secretary of Agriculture shall publish 
    in the Federal Register, for each proposed major regulation the 
    primary purpose of which is to regulate issues of human health, 
    human safety, or the environment that is promulgated by the 
    Department after the enactment of this Act, an analysis with as 
    much specificity as practicable, of--
            (A) the risk, including the effect of the risk, to human 
        health, human safety, or the environment, and any combination 
        thereof, addressed by the regulation, including, where 
        applicable and practicable, the health and safety risks to 
        persons who are disproportionately exposed or particularly 
        sensitive;
            (B) the costs associated with the implementation of, and 
        compliance with, the regulation;
            (C) where appropriate and meaningful, a comparison of that 
        risk relative to other similar risks regulated by the 
        Department or other Federal Agency, resulting from comparable 
        activities and exposure pathways (such comparisons should 
        consider relevant distinctions among risks, such as the 
        voluntary or involuntary nature of risks and the preventability 
        or nonpreventability of risks); and
            (D) the quantitative and qualitative benefits of the 
        regulation, including the reduction or prevention of risk 
        expected from the regulation.
Where such a regulatory analysis is not practicable because of 
compelling circumstances, the Director shall provide an explanation in 
lieu of conducting an analysis under this section.
        (2) Evaluation.--The regulatory analysis referred to in 
    paragraph (1) should also contain a statement that the Secretary of 
    Agriculture evaluated--
            (A) whether the regulation will advance the purpose of 
        protecting against the risk referred to in paragraph (1)(A); 
        and
            (B) whether the regulation will produce benefits and reduce 
        risks to human health, human safety, or the environment, and 
        any combination thereof, in a cost-effective manner as a result 
        of the implementation of and compliance with the regulation, by 
        local, State, and Federal Government and other public and 
        private entities, as estimated in paragraph (1)(B).
        (3) This section shall not be construed to amend, modify, or 
    alter any statute and shall not be subject to judicial review. This 
    section shall not be construed to grant a cause of action to any 
    person. The Secretary of Agriculture shall perform the analyses 
    required in this section in such a manner that does not delay the 
    promulgation or implementation of regulations mandated by statute 
    or judicial order.
    (c) Definition.--As used in this section, the term ``major 
regulation'' means any regulation that the Secretary of Agriculture 
estimates is likely to have an annual impact on the economy of the 
United States of $100,000,000 in 1994 dollars.
    SEC. 305. FAIR AND EQUITABLE TREATMENT OF SOCIALLY DISADVANTAGED 
      PRODUCERS.
    (a) Fair Crop Acreage Bases and Farm Program Payment Yields.--If 
the Secretary of Agriculture determines that crop acreage bases or farm 
program payment yields established for farms owned or operated by 
socially disadvantaged producers are not established in accordance with 
title V of the Agricultural Act of 1949 (7 U.S.C. 1461 et seq.), the 
Secretary shall adjust the bases and yields to conform to the 
requirements of such title and make available any appropriate commodity 
program benefits.
    (b) Fair Application of Consolidated Farm and Rural Development 
Act.--If the Secretary of Agriculture determines that application of 
the Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et seq.) 
with respect to socially disadvantaged producers is not consistent with 
the requirements of such Act, the Secretary shall make such changes in 
the administration of such Act as the Secretary considers necessary to 
provide for the fair and equitable treatment of socially disadvantaged 
producers under such Act.
    (c) Report on Treatment of Socially Disadvantaged Producers.--
        (1) Report required.--The Comptroller General of the United 
    States shall prepare a report to determine--
            (A) whether socially disadvantaged producers are 
        underrepresented on State, county, area, or local committees 
        established under section 8(b)(5) of the Soil Conservation and 
        Domestic Allotment Act (16 U.S.C. 590h(b)(5)) or local review 
        committees established under section 363 of the Agricultural 
        Adjustment Act of 1938 (7 U.S.C. 1363) because of racial, 
        ethnic, or gender prejudice; and
            (B) if such underrepresentation exists, whether it inhibits 
        or interferes with the participation of socially disadvantaged 
        producers in programs of the Department of Agriculture.
        (2) Submission of report.--Not later than February 1, 1995, the 
    Comptroller General shall submit the report required by this 
    subsection to the Committee on Agriculture of the House of 
    Representatives and the Committee on Agriculture, Nutrition, and 
    Forestry of the Senate.
    (d) Definition.--For purposes of this section, the term ``socially 
disadvantaged producer'' means a producer who is a member of a group 
whose members have been subjected to racial, ethnic, or gender 
prejudice because of their identity as members of a group without 
regard to their individual qualities.

SEC. 306. AVIATION INSPECTIONS.

    (a) Study of Aircraft Inspections.--
        (1) Intent of study.--The intent of the study required by this 
    subsection is to examine the cost efficiencies of conducting 
    inspections of aircraft and pilots by one Federal agency without 
    reducing aircraft, passenger, or pilot safety standards or lowering 
    mission preparedness.
        (2) Study required.--The Secretary of Agriculture and the 
    Secretary of Transportation shall jointly conduct a study of the 
    inspection specifications and procedures by which aircraft and 
    pilots contracted by the Department are certified to determine the 
    cost efficiencies of eliminating duplicative Department inspection 
    requirements and transferring some or all inspection requirements 
    to the Federal Aviation Administration, while ensuring that neither 
    aircraft, passenger, nor pilot safety is reduced and that mission 
    preparedness is maintained.
        (3) Special considerations.--In conducting the study, the 
    Secretaries shall evaluate current inspection specifications and 
    procedures mandated by the Department and the Forest Service, 
    taking into consideration the unique requirements and risks of 
    particular Department and Forest Service missions that may require 
    special inspection specifications and procedures to ensure the 
    safety of Department and Forest Service personnel and their 
    contractees.
        (4) Maintenance of standards and preparedness.--In making 
    recommendations to transfer inspection authority or otherwise 
    change Department inspection specifications and procedures, the 
    Secretaries shall ensure that the implementation of any such 
    recommendations does not lower aircraft or pilot standards or 
    preparedness for Department or Forest Service missions.
        (5) Submission of results.--Not later than 180 days after the 
    date of the enactment of this Act, the Secretaries shall submit to 
    Congress the results of the study, including any recommendations to 
    transfer inspection authority or otherwise change Department 
    inspection specifications and procedures and a cost-benefit 
    analysis of such recommendations.
    (b) Review of Recently Adopted Aircraft Policy.--
        (1) Review required.--The Secretaries shall review the policy 
    initiated by the Secretary of Agriculture on July 1, 1994, to 
    accept Federal Aviation Administration inspections on aircraft and 
    pilots that provide ``airport to airport'' service for the Forest 
    Service. The policy is currently being cooperatively developed by 
    the Department and the Federal Aviation Administration and is 
    intended to reduce duplicative inspections and to reduce Government 
    costs, while maintaining aircraft, passenger, and pilot safety 
    standards, specifications and procedures currently required by the 
    Department and the Forest Service.
        (2) Expansion of policy.--As part of the review, the 
    Secretaries shall examine the feasibility and desirability of 
    applying this policy on a Government-wide basis.
        (3) Submission of results.--Not later than one year after the 
    date of the implementation of the policy, the Secretary of 
    Agriculture shall submit to Congress the results of the review, 
    including any recommendations that the Secretary considers 
    appropriate.







                               Speaker of the House of Representatives.







                            Vice President of the United States and    
                                               President of the Senate.`