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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4217 Engrossed Amendment Senate (EAS)]

103d CONGRESS

  2d Session

                               H. R. 4217

_______________________________________________________________________

                               AMENDMENT
    
    
    
    
    
    
    
    

                  In the Senate of the United States,

                          August 25 (legislative day, August 18), 1994.
      Resolved, That the bill from the House of Representatives (H.R. 
4217) entitled ``An Act to reform the Federal crop insurance program, 
and for other purposes'', do pass with the following

                               AMENDMENT:

            Strike out all after the enacting clause and insert:

SECTION. 1. TABLE OF CONTENTS.

    The table of contents of this Act is as follows:

Sec. 1. Table of contents.

                 TITLE I--FEDERAL CROP INSURANCE REFORM

     Subtitle A--Catastrophic Risk and Additional coverage Insurance

Sec. 1100. Short title; references.
Sec. 1101. Authority to offer insurance.
Sec. 1102. Catastrophic risk protection.
Sec. 1103. General coverage levels.
Sec. 1104. Premiums.
Sec. 1105. Eligibility.
Sec. 1106. Yield determinations.
Sec. 1107. Insurance policies.
Sec. 1108. Claims for losses.
Sec. 1109. Reinsurance.
Sec. 1110. Funding.
Sec. 1111. Advisory Committee for Federal Crop Insurance.
Sec. 1112. Management of Corporation.

              Subtitle B----Noninsured Assistance Program

Sec. 1201. Noninsured assistance program.
Sec. 1202. Payment and income limitations.

                       Subtitle C--Miscellaneous

Sec. 1301. Ineligibility for catastrophic risk and noninsured 
                            assistance payments.
Sec. 1302. Prevented planting.
Sec. 1303. Conforming amendments.
Sec. 1304. Disaster assistance.
Sec. 1305. Use of Commodity Credit Corporation funds to cover certain 
                            costs for fall-planted 1995 crops.
Sec. 1306. Poultry labeling, public hearings.
Sec. 1307. Agriculture employees first amendment rights.
Sec. 1308. Adjusted cost of thrifty food plan.
Sec. 1309. Effective dates.
Sec. 1310. Termination of authority.

           TITLE II--DEPARTMENT OF AGRICULTURE REORGANIZATION

             Subtitle A--Short Title; Purpose; Definitions

Sec. 2101. Short title.
Sec. 2102. Purpose.
Sec. 2103. Definitions.

           Subtitle B--General Authorities of the Secrtetary

Sec. 2201. Delegation of functions to the Secretary.
Sec. 2202. Reorganization.
Sec. 2203. Personnel reductions.
Sec. 2204. Consolidation of headquarters offices.
Sec. 2205. Reports by the Secretary.

                 Subtitle C--National Appeals Division

Sec. 2301. Definitions.
Sec. 2302. National Appeals Division and Director.
Sec. 2303. Transfer of functions.
Sec. 2304. Personnel of the Division.
Sec. 2305. Notice and opportunity for hearing.
Sec. 2306. Informal hearings.
Sec. 2307. Rights of participants.
Sec. 2308. Division hearings and Director review.
Sec. 2309. Judicial review.
Sec. 2310. Implementation of final determinations of Division.
Sec. 2311. Decisions of State and county committees.
Sec. 2312. Prohibition on adverse action while appeal is pending.
Sec. 2313. Relationship to other laws.
Sec. 2314. Evaluation of agency decisionmakers and other employees.
Sec. 2315. Conforming amendments.

           Subtitle D--Farm and International Trade Services

Sec. 2401. Under Secretary for Farm and International Trade Services.
Sec. 2402. Farm Service Agency.
Sec. 2403. State and county committees.
Sec. 2404. International Trade Service.

          Subtitle E--Rural Economic and Community Development

Sec. 2501. Under Secretary for Rural Economic and Community 
                            Development.
Sec. 2502. Rural Utilities Service.
Sec. 2503. Rural Housing and Community Development Service.
Sec. 2504. Rural Business and Cooperative Development Service.

           Subtitle F--Food, Nutrition, and Consumer Services

Sec. 2601. Under Secretary of Agriculture for Food, Nutrition, and 
                            Consumer Services.
Sec. 2602. Food and Consumer Service.
Sec. 2603. Nutrition Research and Education Service.

             Subtitle G--National Resources and Environment

Sec. 2701. Natural Resources Conservation Service.
Sec. 2702. Reorganization of Forest Service.

             Subtitle H--Marketing and Inspection Services

Sec. 2801. Grain Inspection, Packers and Stockyards Administration.

             Subtitle I--Research, Economics, and Education

Sec. 2901. Federal Research and Information Service.
Sec. 2902. Cooperative State Research and Education Service.
Sec. 2903. Agricultural Economics and Statistics Service.
Sec. 2904. Program Policy and Coordination Staff.

                        Subtitle J--Food Safety

Sec. 2951. Food Safety Service.

                       Subtitle K--Miscellaneous

Sec. 2981. Assistant Secretaries of Agriculture.
Sec. 2982. Removal of obsolete provisions.
Sec. 2983. Additional conforming amendments.
Sec. 2984. Termination of authority.
Sec. 2985. Elimination of duplicative inspection requirements.

                 TITLE I--FEDERAL CROP INSURANCE REFORM

    Subtitle A--Catastrophic Risk and Additional Coverage Insurance

SEC. 1100. 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. 1101. AUTHORITY TO OFFER INSURANCE.

    Section 508 (7 U.S.C. 1508) is amended--
            (1) by striking subsection (a) and inserting the following 
        new subsection:
    ``(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 shall 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 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 so reseed; or
                    ``(C) the failure of the producer to follow good 
                farming practices (as determined by the Secretary).'';
            (2) by striking subsections (c), (e), (g), (l), and (n); 
        and
            (3) by redesignating subsections (b), (d), (f), (h), (i), 
        (j), (k), and (m) as subsections (g) through (n), respectively.

SEC. 1102. CATASTROPHIC RISK PROTECTION.

    Section 508 (7 U.S.C. 1508) (as amended by section 1101) is further 
amended by inserting after subsection (a) the following new subsection:
    ``(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 when the 
        producer is unable, because of drought, flood, or other natural 
        disaster (as determined by the Secretary), to plant crops for 
        harvest on the acreage for that crop year.
            ``(2) Amount of coverage.--Catastrophic risk protection 
        shall offer a producer 50 percent loss in yield coverage, 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).
            ``(3) Payment.--A catastrophic risk payment may reflect a 
        reduction that is proportionate to the lack of out-of-pocket 
        expenses associated with the failure to plant, grow, or harvest 
        the crop, as determined by the Corporation.
            ``(4) 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.
            ``(5) Sale of catastrophic risk coverage.--
                    ``(A) In general.--Catastrophic risk coverage may 
                be offered by--
                            ``(i) private 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 United States Department of 
                        Agriculture (referred to in this title as 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 availability of private insurance 
                carriers.
            ``(6) Administrative fee.--
                    ``(A) In general.--As a condition of catastrophic 
                risk protection, a producer shall pay an administrative 
                fee. The administrative fee shall be $50 per crop per 
                county, but not to exceed $100 per producer per county. 
                The administrative fee shall be paid at the service 
                point, at the local office of the Department, or to the 
                approved insurance provider, at the time of 
                application.
                    ``(B) Fee waivers.--The administrative fee shall be 
                waived--
                            ``(i) for farmers of limited resources (as 
                        defined by the Corporation); or
                            ``(ii) if the producer elects to purchase 
                        additional protection at 65 percent or more of 
                        the recorded or appraised average yield and 100 
                        percent of the expected market price, or an 
                        equivalent coverage, offered by an approved 
                        insurance provider.
                    ``(C) Use of fees collected.--Funds collected as 
                administrative fees shall be retained by the Department 
                or the approved insurance provider for operating and 
                administrative expenses for the delivery of 
                catastrophic risk protection policies.
            ``(7) 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 such coverage for 
        the crop on all insurable land of the producer in that county.
            ``(8) Eligibility for department programs.--
                    ``(A) In general.--To be eligible for any price 
                support or production adjustment 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.
            ``(9) 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.
            ``(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 paragraph.''.

SEC. 1103. GENERAL COVERAGE LEVELS.

    Section 508 (7 U.S.C. 1508) (as amended by section 1102) is further 
amended by inserting after subsection (b) the following new subsection:
    ``(c) General Coverage Levels.--
            ``(1) In general.--The Corporation shall offer plans of 
        insurance that provide levels of coverage that are greater than 
        the level available under catastrophic risk protection under 
        subsection (b). A producer may purchase such a plan only from 
        an approved insurance provider, if the private insurance is 
        available. Nothing in this paragraph restricts the Corporation 
        from offering insurance plans if coverage from private 
        insurance providers is unavailable.
            ``(2) Transfer of insurance files.--If a producer has 
        already applied for catastrophic risk protection at the local 
        office of the Department and elects to purchase additional 
        coverage, the insurance file 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). By 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 the 
                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 varieties.--The Corporation shall, over 
                a period of time as determined practicable by the 
                Corporation, offer producers different price elections 
                for varieties of wheat, in addition to the standard 
                price election, that reflect different market prices, 
                as determined by the Corporation. The Corporation shall 
                offer additional coverage for each variety determined 
                under this subparagraph and charge a premium for each 
                variety that is actuarially sound.
            ``(7) Substitute coverage for fire and hail.--
                    ``(A) In general.--For levels of coverage 65 
                percent or more of the recorded or appraised average 
                yield and 100 percent of the expected market price, or 
                an equivalent coverage, the producer may elect to 
                delete from the insurance coverage provided under this 
                title coverage against damage caused by fire or hail, 
                if an equivalent or greater dollar amount of coverage 
                for damage caused by fire or hail is obtained from a 
                private fire or hail insurance provider.
                    ``(B) Credit for substitute coverage.--On written 
                notice of an election under subparagraph (A) to the 
                company issuing the policy providing coverage under 
                this title 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. The producer 
                shall not be given a reduction for an amount of premium 
                determined to be greater than the actuarial value of 
                the protection against losses caused by fire or hail 
                that is included in the coverage under this title for 
                the crop.
            ``(8) State premium subsidies.--The Corporation may enter 
        into agreements 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 the producers in the State.
            ``(9) Limitation due to risk.--The Corporation may limit or 
        refuse insurance in any county or area, or on any farm, on the 
        basis of the insurance risk concerned.
            ``(10) Administrative fee.--
                    ``(A) In general.--As a condition of coverage that 
                is in addition to catastrophic risk protection but less 
                than 65 percent of the recorded or appraised average 
                yield and 100 percent of the expected market price, or 
                an equivalent coverage, a producer shall pay an 
                administrative fee. The administrative fee shall be $50 
                per crop per county, but not to exceed $100 per 
                producer per county. The administrative fee shall be 
                paid to the approved insurance provider or the 
                Department, as applicable, at the time of application.
                    ``(B) Fee waivers.--The administrative fee shall be 
                waived--
                            ``(i) for farmers of limited resources (as 
                        defined by the Corporation); or
                            ``(ii) if the producer elects to purchase 
                        additional protection at 65 percent or more of 
                        the recorded or appraised average yield and 100 
                        percent of the expected market price, or an 
                        equivalent coverage, offered by an approved 
                        insurance provider.
                    ``(C) Use of fees collected.--Funds collected as 
                administrative fees shall be retained by the approved 
                insurance provider or the Department, as applicable, 
                for operating and administrative expenses.''.

SEC. 1104. PREMIUMS.

    Section 508 (7 U.S.C. 1508) (as amended by section 1103) is further 
amended by inserting after subsection (c) the following new subsection:
    ``(d) Premiums.--
            ``(1) Levels.--
                    ``(A) Catastrophic risk protection.--For 
                catastrophic risk protection coverage, the amount of 
                premium shall be sufficient to cover anticipated losses 
                and a reasonable reserve.
                    ``(B) Additional coverage.--For levels of coverage 
                below 65 percent of the recorded or appraised average 
                yield and 100 percent of the expected market price, or 
                an equivalent coverage, but greater than catastrophic 
                risk protection coverage, the amount of premium shall 
                be sufficient to cover anticipated losses, a reasonable 
                reserve, and an amount for operating and administrative 
                expenses (as determined by the Corporation) that is 
                less than the amount established for coverage at 65 
                percent of the recorded or appraised average yield and 
                100 percent of the expected market price, or an 
                equivalent coverage.
                    ``(C) High coverage.--For levels of coverage of at 
                least 65 percent of the recorded or appraised average 
                yield and 100 percent of the expected market price, or 
                an equivalent coverage, the amount of premium shall be 
                sufficient to cover anticipated losses, a reasonable 
                reserve, and an amount to pay the operating and 
                administrative expenses (as determined by the 
                Corporation) on an industry-wide basis as a percentage 
                of the total premium.
            ``(2) Payment of part of premium.--For the purpose of 
        encouraging the broadest possible participation, the 
        Corporation shall pay a part of the premium equivalent to--
                    ``(A) for catastrophic risk protection coverage, an 
                amount equal to the premium established under paragraph 
                (1)(A);
                    ``(B) for levels of coverage below 65 percent of 
                the recorded and appraised average yield and 100 
                percent of the expected market price, or an equivalent 
                coverage, but greater than catastrophic risk 
                protection, an amount equal to the sum of the amount of 
                premium established for catastrophic risk protection 
                coverage and the amount for operating and 
                administrative expenses established under paragraph 
                (1)(B); and
                    ``(C) for levels of coverage at or greater than 65 
                percent of the recorded and appraised yield and 100 
                percent of the expected market price, or an equivalent 
                coverage, on an individual or area basis, an amount 
                equal to the sum of--
                            ``(i) the premium established for--
                                    ``(I) in the case of each of the 
                                1995 and 1996 crop years, 50 percent 
                                loss in yield indemnified at 80 percent 
                                of the expected market price;
                                    ``(II) in the case of the 1997 crop 
                                year, 50 percent loss in yield 
                                indemnified at 77.5 percent of the 
                                expected market price; and
                                    ``(III) in the case of the 1998 and 
                                each subsequent crop year, 50 percent 
                                loss in yield indemnified at 75 percent 
                                of the expected market price; and
                            ``(ii) the amount for operating and 
                        administrative expenses established under 
                        paragraph (1)(C).
            ``(3) Reductions by private providers.--If a private 
        insurance provider determines that the provider may provide 
        insurance more efficiently than the expense reimbursement 
        amount set by the Corporation, the private insurance provider 
        may, with the approval of the Corporation, reduce the premium 
        charged the insured by the amount of the efficiency. A 
        reduction pursuant to the preceding sentence shall be subject 
        to such rules, limitations, and procedures as are established 
        by the Corporation.
            ``(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.''.

SEC. 1105. ELIGIBILITY.

    (a) In General.--Section 508 (7 U.S.C. 1508) (as amended by section 
1104) is further amended by inserting after subsection (d) the 
following new subsection:
    ``(e) 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.--For coverage under this title, each 
        producer shall provide records, acceptable to the Corporation, 
        of previous acreage and production or accept a yield determined 
        by the Corporation.
            ``(4) Reporting.--For coverage under this title, each 
        producer shall report acreage planted and prevented from 
        planting by the designated acreage reporting date for the crop 
        and location as established by the Corporation.''.
    (b) 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. 1106. YIELD DETERMINATIONS.

    Section 508 (7 U.S.C. 1508) (as amended by section 1105(a)) is 
further amended by inserting after subsection (e) the following new 
subsection:
    ``(f) Yield Determinations.--
            ``(1) In general.--Subject to paragraph (2), the 
        Corporation shall implement crop insurance underwriting rules 
        that ensure that yield coverage is provided to eligible 
        producers participating in the Federal crop insurance program.
            ``(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 
                (d)(4)), if available, on a commodity-by-commodity 
                basis.
            ``(3) Notice.--The Corporation shall ensure that producers 
        are given adequate notice of the applicable yield coverage 
        provisions of this section in advance of the crop insurance 
        application period for the crops to which the provisions first 
        will apply.
            ``(4) Transitional yields for producers of feed or 
        forage.--
                    ``(A) In general.--If a producer does not provide 
                satisfactory evidence of the 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 
                        livestock, dairy, or poultry 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 2 years after the effective date of this 
                paragraph.''.

SEC. 1107. INSURANCE POLICIES.

    Subsection (g) of section 508 (7 U.S.C. 1508) (as redesignated by 
section 1101(3)) is amended--
            (1) in paragraph (1), by striking ``(a)'' and inserting 
        ``(c)'';
            (2) by striking paragraph (2) and inserting the following 
        new paragraph:
            ``(2) Preparation of policies.--A policy or other material 
        submitted to the Corporation under this subsection may be 
        prepared without regard to the limitations specified in this 
        title, including the requirements concerning the levels of 
        coverage and rates and the requirement that a price level for 
        each commodity insured shall equal the projected market price 
        for the commodity as established by the Corporation. The policy 
        may be subsidized only at an amount equivalent to coverage 
        authorized under this title.'';
            (3) in paragraph (3)--
                    (A) in the first sentence, by striking ``taking 
                into consideration the risks covered by the policy or 
                other material''; and
                    (B) in the second sentence, by inserting ``with a 
                private insurance provider'' after ``reinsurance 
                agreement''; and
            (4) by striking paragraph (4) and inserting the following 
        new paragraphs:
            ``(4) 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 each person who contracts with or is reinsured by 
        the Corporation under the same terms and conditions as are 
        applicable between the Corporation and the submitting person.
            ``(5) 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 would indemnify 
                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.
            ``(6) 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.
            ``(7) Pilot transitional yield program for new producers.--
                    ``(A) Increased transitional yield.--The 
                Corporation shall offer, to the extent practicable, a 
                transitional yield program for new producers to provide 
                110 percent of the transitional yield established by 
                the Corporation.
                    ``(B) Pilot basis.--The transitional yield program 
                shall--
                            ``(i) be established as a pilot project for 
                        each of the 1995 and 1996 crop years; and
                            ``(ii) be carried out in 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 the plan.
                    ``(C) 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.''.

SEC. 1108. CLAIMS FOR LOSSES.

    Subsection (i) of section 508 (7 U.S.C. 1508) (as redesignated by 
section 1101(3)) is amended to read as follows:
    ``(i) Claims for Losses.--
            ``(1) In general.--The Corporation may provide for 
        adjustment and payment of claims for losses as provided under 
        subsection (a) under rules prescribed by the Corporation. 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 
                by the private insurance provider, an action on the 
                claim shall only be brought against the Corporation or 
                Secretary or the insurance provider 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 written notice of denial of the claim is provided 
                to the claimant.
            ``(3) Indemnification.--The Corporation shall provide 
        insurance companies, agents, and brokers with indemnification, 
        including costs and reasonable attorney fees, from the 
        Corporation for errors or omissions on the part of the 
        Corporation.''.

SEC. 1109. REINSURANCE.

    Section 508 (7 U.S.C. 1508) is amended--
            (1) by striking subsection (j) (as redesignated by section 
        1101(3)) and inserting the following new subsection:
    ``(j) Reinsurance.--Notwithstanding any other provision of this 
title, the Corporation shall, to the maximum extent practicable, 
provide reinsurance, on such terms and conditions as the Corporation 
determines to be consistent with subsections (b) and (c) and sound 
reinsurance principles, to insurers (as defined by the Corporation) 
that insure producers of any agricultural commodity under 1 or more 
plans acceptable to the Corporation. Each reinsurance agreement of the 
Corporation with a reinsured company shall require the reinsured 
company 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 availability of private reinsurance.''; and
            (2) in subsection (k) (as so redesignated), by striking 
        ``provide'' and inserting ``offer plans of''.

SEC. 1110. FUNDING.

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

``SEC. 516. FUNDING.

    ``(a) Authorization of Appropriations.--
            ``(1) Expenses of corporation.--There are authorized to be 
        appropriated such sums as are necessary to cover the salaries 
        and expenses of the Corporation and the administrative and 
        operating expenses of the Corporation for the sales commissions 
        of agents.
            ``(2) Expenses of providers.--There are authorized to be 
        appropriated such sums as are necessary to cover the 
        administrative and operating expenses of an approved insurance 
        provider for the delivery of policies with coverage that is 
        greater than catastrophic risk protection.
    ``(b) Payment of Expenses.--
            ``(1) Administrative and operating expenses.--Beginning 
        with the 1996 crop year, the Corporation is authorized to pay, 
        from the insurance fund established under subsection (c), the 
        administrative and operating expenses of an approved insurance 
        provider, other than expenses covered under subsection (a)(1).
            ``(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 in subsection (a)(1)), including 
                all premium subsidies and indemnities;
                    ``(B) for the 1995 crop year, 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, income from reinsurance 
        operations, and amounts made available under subsection (a)(2).
            ``(2) Source of funding.--There are appropriated, without 
        fiscal year limitation, such sums as may be necessary to carry 
        out subsection (b) through the insurance fund.''.

SEC. 1111. ADVISORY COMMITTEE FOR FEDERAL CROP INSURANCE.

    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 a committee to be known as the `Advisory Committee for 
Federal Crop Insurance' (referred to in this section as the `Advisory 
Committee'), which shall remain in existence until September 30, 1998.
    ``(b) Membership.--The Advisory Committee shall be composed of--
            ``(1) the Manager of the Corporation;
            ``(2) the Secretary or a designee; and
            ``(3) not fewer than 10 representatives of organizations or 
        agencies involved with the Federal crop insurance program, 
        which may include insurance companies, insurance agents, farm 
        producer organizations, experts on agronomic practices, and 
        banking and lending institutions.
    ``(c) Administrative Provisions.--
            ``(1) Terms.--Members of the Advisory Committee shall be 
        appointed by the Secretary for a term of not more than 2 years 
        from nominations made by the participating organizations and 
        agencies referred to in subsection (b). The terms of the 
        members 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.
    ``(d) 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).
    ``(e) Reports.--Not later than June 30 of each year, the Advisory 
Committee shall prepare, and submit to the Secretary, a report 
specifying the conclusions of the Advisory Committee on--
            ``(1) the progress toward implementation of this title;
            ``(2) the actuarial soundness of the Federal crop insurance 
        program; and
            ``(3) the rate of participation in the catastrophic and the 
        additional coverage programs under this title.''.

SEC. 1112. MANAGEMENT OF CORPORATION.

    (a) In General.--The second sentence of section 505(a) (7 U.S.C. 
1505(a)) is amended--
            (1) by striking ``program, the Under Secretary'' and 
        inserting ``program, 1 additional Under Secretary''; and
            (2) by striking ``responsible for the farm credit programs 
        of the Department of Agriculture'' and inserting ``, as 
        designated by the Secretary of Agriculture (referred to in this 
        title as the `Secretary')''.
    (b) 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 
        subsection:
    ``(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 
        October 1, 1998, an overall projected loss ratio of not greater 
        than 1.0.
            ``(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) Loss Ratio Defined.--As used in this Act, 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.
    ``(q) Regulations.--The Secretary and the Corporation are each 
authorized to issue such regulations as are necessary to carry out this 
title.''.
    (c) Personnel.--Section 507 (7 U.S.C. 1507) is amended--
            (1) in subsection (a), by striking ``, and county crop 
        insurance committeemen'';
            (2) in subsection (c), by striking ``, in which case the 
        agent or broker'' and all that follows through ``the agent or 
        broker has caused the error or omission''; and
            (3) in subsection (d), by striking ``of this Act,'' and all 
        that follows through ``agency''.
    (d) Information Collection on Crop Insurance.--Subsection (n) of 
section 508 (7 U.S.C. 1508) (as redesignated by section 1101(3)) is 
amended to read as follows:
    ``(n) Information Collection on Crop Insurance.--The Secretary 
shall make available to producers through local offices of the 
Department--
            ``(1) current and complete information on all aspects of 
        Federal crop insurance; and
            ``(2) a listing of insurance agents.''.
    (e) Crop Insurance Yield Coverage.--Section 508A (7 U.S.C. 1508a) 
is repealed.
    (f) Preemption.--Section 511 (7 U.S.C. 1511) is amended by 
inserting after ``The Corporation, including'' the following: ``the 
contracts of insurance of the Corporation and premiums on the 
contracts, whether insured directly or reinsured by the Corporation,''.
    (g) 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''.

               Subtitle B--Noninsured Assistance Program

SEC. 1201. NONINSURED ASSISTANCE PROGRAM.

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

``SEC. 521. NONINSURED ASSISTANCE PROGRAM.

    ``(a) Eligibility.--
            ``(1) In general.--The Corporation shall establish a 
        noninsured assistance program to provide coverage equivalent to 
        the catastrophic risk protection insurance described in section 
        508(b) for crops for which catastrophic risk protection 
        insurance is not available. Crops covered shall include all 
        commercial crops and commodities for which catastrophic risk 
        protection coverage is not available and that are produced for 
        food, fiber, or an industrial crop on a commercial basis but 
        shall not include livestock. Noninsured assistance 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 so reseed; or
                    ``(C) the failure of the producer to follow good 
                farming practices (as determined by the Secretary).
            ``(2) Applications.--To be eligible for assistance under 
        this section, a producer shall make a timely application, as 
        required by the Corporation, for noninsured assistance at the 
        local office of the Department.
            ``(3) Records.--A producer shall annually provide records, 
        as required by the Corporation, of previous crop acreage and 
        yields, or the producer shall accept a yield under subsection 
        (c)(2)(B) determined by the Corporation.
            ``(4) 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.
            ``(5) Area yield losses.--
                    ``(A) Area average yield.--A producer of a 
                noninsurable crop shall not be eligible for noninsured 
                assistance unless the area (as determined by the 
                Corporation) average yield, or an equivalent measure if 
                yield data are not available, for the crop is less than 
                65 percent of the expected area yield established by 
                the Corporation.
                    ``(B) Prevented planting payments.--Subject to 
                subparagraph (A), the Corporation shall make a 
                prevented planting noninsured assistance payment to a 
                producer if the producer is prevented from planting 
                more than 35 percent of the acreage intended for the 
                crop because of drought, flood, or other natural 
                disaster (as determined by the Secretary).
                    ``(C) Reduced yield payments.--Subject to 
                subparagraph (A), if, because of drought, flood, or 
                other natural disaster (as determined by the 
                Secretary), the total quantity of the crop that a 
                producer is able to harvest on any farm is less than 50 
                percent of the expected area yield for the crop (as 
                determined by the Corporation) factored for the 
                interest of the producer for the crop, the Corporation 
                shall make a reduced yield noninsured assistance 
                payment.
    ``(b) Payment.--The Corporation shall make available to a producer 
eligible for noninsured assistance under this section a payment 
computed by multiplying--
            ``(1) the quantity that is less than 50 percent of the 
        established yield for the crop; by
            ``(2) 60 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, a payment 
                rate that 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, a 
                payment rate determined by the Corporation.
    ``(c) Yields.--
            ``(1) In general.--The Corporation shall establish 
        noninsured assistance program farm yields for crops for the 
        purposes of this section.
            ``(2) Actual production history.--
                    ``(A) In general.--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 of the 10 crop 
                years immediately preceding the crop year for which 
                production history is being established.
                    ``(B) Assigned yield.--
                            ``(i) In general.--If the producer does not 
                        provide sufficient evidence of the yield (as 
                        required by the Corporation) 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.
                            ``(ii) Limitation.--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.
                    ``(C) Yield variations due to different farming 
                practices.--The Corporation shall make noninsured 
                payments that accurately reflect significant yield 
                variations due to different farming practices, such as 
                between irrigated and nonirrigated acreage.
    ``(d) Increased Crop Plantings.--
            ``(1) In general.--If the acreage of a crop in a county has 
        increased by more than 100 percent since the 1987 crop year, to 
        become eligible for a noninsured assistance payment, a producer 
        must provide detailed documentation of production costs, acres 
        planted, and yield, as required by the Corporation. Except as 
        provided in paragraph (2), a producer who produces a crop on a 
        farm located in a county described in the preceding sentence 
        may not obtain an assigned yield.
            ``(2) Exception.--A crop or a producer shall not be subject 
        to this subsection if--
                    ``(A) the planted acreage of the producer for the 
                crop has been inspected by a third party acceptable to 
                the Secretary; or
                    ``(B)(i) the County Executive Director, the 
                District 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 
                recommendation.
    ``(e) 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.
    ``(f) Payment of Losses.--Payments for noninsured assistance losses 
under this section shall be made from the insurance fund established 
under section 516(b). The losses shall not be included in calculating 
the premiums charged to producers for insurance.''.

SEC. 1202. PAYMENT AND INCOME LIMITATIONS.

    Section 521 (as added by section 1201) is further amended by adding 
at the end the following new subsection:
    ``(g) 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) No double benefits.--No person may receive a 
        noninsured assistance payment under this title and emergency 
        livestock feed assistance under section 606 of the Agricultural 
        Act of 1949 (7 U.S.C. 1471d) for the same livestock feed or 
        forage loss.
            ``(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.''.

                       Subtitle C--Miscellaneous

SEC. 1301. INELIGIBILITY FOR CATASTROPHIC RISK AND NONINSURED 
              ASSISTANCE PAYMENTS.

    The Act (7 U.S.C. 1501 et seq.) (as amended by section 1201) is 
further amended by adding at the end the following new section:

``SEC. 522. 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 Act to which the 
person is not entitled, has evaded this Act, or has acted with the 
purposes of evading this Act, 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(m).''.

SEC. 1302. 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 conservation use 
        program described in subsection (b)(4); and
            (2) obtaining from the Federal Crop Insurance Corporation 
        the amount that is equal to the difference between--
                    (A) the amount that is payable under the 
                conservation 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 conservation 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. 1303. 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 and for each of the 1995 and 
subsequent calendar years with respect to milk, 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.--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.--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) 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(i)''.
            (2) The last sentence of section 507(c) (7 U.S.C. 1507(c)) 
        is amended by striking ``508(b)'' and inserting ``508(g)''.
            (3) Section 518 (7 U.S.C. 1518) is amended by striking 
        ``(k)'' and inserting ``(m)''.

SEC. 1304. DISASTER ASSISTANCE.

    (a) Crop Loss Assistance.--The Secretary of Agriculture may provide 
assistance to producers for crop losses in 1994 due to natural 
disasters under the terms and conditions of--
            (1) chapter 3 of subtitle B of title XXII of the Food, 
        Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 1421 
        note); and
            (2) subsections (a)(4), (b)(3), (d), and (e) of section 521 
        of the Federal Crop Insurance Act (as amended by this title).
    (b) Other Emergency Assistance.--To provide assistance for losses 
in 1994 due to natural disasters, the Secretary of Agriculture may 
provide assistance under--
            (1) the emergency conservation program established under 
        title IV of the Agricultural Credit Act of 1978 (16 U.S.C. 2201 
        et seq.);
            (2) the emergency watershed protection program of the Soil 
        Conservation Service; and
            (3) the emergency community water assistance grant program 
        established under section 306A of the Consolidated Farm and 
        Rural Development Act (7 U.S.C. 1926a).
    (c) Funding.--
            (1) Crop loss assistance.--Out of available funds of the 
        Commodity Credit Corporation, the Commodity Credit Corporation 
        is authorized to provide to the Secretary of Agriculture, 
        through July 15, 1995, such sums as are necessary to carry out 
        subsection (a).
            (2) Other emergency assistance.--There are authorized to be 
        appropriated such sums as are necessary to carry out subsection 
        (b).
            (3) Emergency requirement.--The amounts made available 
        under paragraphs (1) and (2) are designated by Congress as an 
        emergency requirement pursuant to section 252(e) of the 
        Balanced Budget and Emergency Deficit Control Act of 1985 (2 
        U.S.C. 902(e)). The amounts shall be available only to the 
        extent that an official budget request for specific dollar 
        amounts, that includes designation of the entire amount of the 
        request as an emergency requirement pursuant to such Act, is 
        transmitted by the President to Congress.
    (d) Definition of Natural Disasters.--As used in this section, the 
term ``natural disasters'' includes weather-related insect damage to 
strawberries.

SEC. 1305. USE OF COMMODITY CREDIT CORPORATION FUNDS TO COVER CERTAIN 
              COSTS FOR FALL-PLANTED 1995 CROPS.

    (a) Definition of Fall-Planted 1995 Crop.--As used in this section, 
the term ``fall-planted 1995 crop'' means a 1995 crop that is insurable 
under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) with a 
sales closing date that is prior to January 1, 1995.
    (b) Use of Funds to Cover Costs.--Subject to the other provisions 
of this section, the Federal Crop Insurance Corporation may use funds 
of the Commodity Credit Corporation to cover operating and 
administrative costs of the Corporation referred to in section 
516(a)(1) of the Federal Crop Insurance Act (7 U.S.C. 1516(a)(1)) 
associated with insurance policies issued for a fall-planted 1995 crop 
under such Act (7 U.S.C. 1501 et seq.).
    (c) Limitation on Amount of Funds.--The amount of funds of the 
Commodity Credit Corporation that may be used under subsection (b) may 
not exceed $40,000,000.
    (d) Combined Limitation on Amount of Funds and Emergency Crop Loss 
Assistance.--The amount of funds of the Commodity Credit Corporation 
used under subsection (b) and the amount of funds used for fiscal year 
1995 to provide emergency crop loss assistance for 1995 crops shall not 
exceed $500,000,000.

SEC. 1306. POULTRY LABELING, PUBLIC HEARINGS.

    It is the sense of the Senate that the United States Department of 
Agriculture should carry out its plans to hold public hearings during 
the month of September 1994, 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 to finalize and publish a 
decision on this issue as expeditiously as possible thereafter. It is 
the further sense of the Senate that no person serving on the expert 
advisory committee established to advise the Secretary of Agriculture 
on this issue should stand to profit, or represent any interest that 
would stand to profit, from the Department's decision on the issue.

SEC. 1307. AGRICULTURE EMPLOYEES FIRST AMENDMENT RIGHTS.

    Notwithstanding any other provision of law, no employee of the 
United States Department of Agriculture shall be peremptorily removed 
without public hearings from his or her position because of remarks 
made during personal time in opposition to Departmental policies, or 
proposed policies regarding homosexuals: Provided, That any such 
individual so removed prior to date of enactment shall be reinstated to 
his or her previous position.

SEC. 1308. ADJUSTED COST OF THRIFTY FOOD PLAN.

    Section 3(o)(11) of the Food Stamp Act of 1977 (7 U.S.C. 
2012(o)(11)) is amended by inserting before the period at the end the 
following: ``, except that the Secretary may not reduce the cost of 
such diet below the allotment in effect for fiscal year 1994.''.

SEC. 1309. EFFECTIVE DATES.

    (a) In General.--Except as otherwise provided in this title, this 
title and the amendments made by this title shall become effective 
beginning with--
            (1) if this title is enacted before October 1, 1994, the 
        1995 crop year for the applicable agricultural commodity; or
            (2) if this title is enacted on or after October 1, 1994, 
        the 1996 crop year for the applicable agricultural commodity.
    (b) Exceptions.--
            (1) In general.--Sections 1100, 1101(1), 1112(e), 1112(f), 
        and 1302, the amendments made by such sections, and this 
        section shall become effective on the date of enactment of this 
        Act.
            (2) Emergency appropriations.--The amendments made by 
        section 1303(d) shall become effective--
                    (A) if this title is enacted before October 1, 
                1994, on the date of enactment of this title; or
                    (B) if this title is enacted on or after October 1, 
                1994, on June 1, 1995.

SEC. 1310. TERMINATION OF AUTHORITY.

    The authority provided by this title and the amendments made by 
this title shall terminate on September 30, 2000.

           TITLE II--DEPARTMENT OF AGRICULTURE REORGANIZATION

             Subtitle A--Short Title; Purpose; Definitions

SEC. 2101. SHORT TITLE.

    This title may be cited as the ``Department of Agriculture 
Reorganization Act of 1994''.

SEC. 2102. 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 at the Department.

SEC. 2103. DEFINITIONS.

    As used in this title (unless the context clearly requires 
otherwise):
            (1) Administrative unit.--The term ``administrative unit'' 
        includes--
                    (A) any office, administration, agency, institute, 
                unit, or organizational entity, or component thereof, 
                except that the term does not include a corporation; 
                and
                    (B) any county, State, or area committee, as 
                established by the Secretary.
            (2) Department.--The term ``Department'' means the United 
        States Department of Agriculture.
            (3) Function.--The term ``function'' means an 
        administrative, financial, or regulatory duty of an 
        administrative unit or employee of the Department, including a 
        transfer of funds made available to carry out a function of an 
        administrative unit.
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.

            Subtitle B--General Authorities of the Secretary

SEC. 2201. DELEGATION OF FUNCTIONS TO THE SECRETARY.

    (a) Delegation of Functions.--Except as otherwise provided in this 
title and notwithstanding any other provision of law, all functions and 
all activities, officers, employees, and administrative units of the 
Department, not vested in the Secretary on the date of enactment of 
this Act, are delegated to the Secretary.
    (b) Exceptions to the Delegation.--This section shall not apply to 
the following functions and administrative units of the Department:
            (1) The functions vested in administrative law judges by 
        subchapter II of chapter 5 of title 5, United States Code.
            (2) The functions vested in the Inspector General by the 
        Inspector General Act of 1978 (5 U.S.C. App. 3).
            (3) The functions vested in the Chief Financial Officer by 
        chapter 9 of subtitle I of title 31, United States Code.
            (4) Corporations and the boards of directors and officers 
        of the corporations.
            (5) The 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. 2202. REORGANIZATION.

    (a) General Authority of the Secretary.--The Secretary may transfer 
any function or administrative unit of the Department, including any 
function or administrative unit delegated to the Secretary by this 
title, and any officer or employee of the Department, as the Secretary 
considers appropriate. The authority established in the preceding 
sentence includes the authority to establish, consolidate, alter, or 
discontinue any administrative unit of the Department.
    (b) Authority To Transfer Records, Property, and Funds.--
            (1) In general.--Subject to section 1531 of title 31, 
        United States Code, the Secretary may transfer any of the 
        records, property, and unexpended balances (available or to be 
        made available for use in connection with any affected function 
        or administrative unit) of appropriations, allocations, and 
        other funds of the Department, as the Secretary considers 
        necessary to carry out this title, except as otherwise provided 
        in this section.
            (2) Use.--Absent prior approval by law, any unexpended 
        balances transferred pursuant to paragraph (1) shall be used 
        only for the purposes for which the funds were originally made 
        available.
            (3) Additional authority.--The Secretary may make such 
        additional incidental dispositions of personnel, assets, 
        liabilities, grants, contracts, property, records, and 
        unexpended balances of appropriations, authorizations, 
        allocations, and other funds held, used, arising from, 
        available to, or to be made available in connection with the 
        functions or administrative units, as the Secretary considers 
        necessary to carry out this title.
    (c) Purpose of the Authority.--The Secretary shall carry out 
subsections (a) and (b) with the goals of simplifying and maximizing 
the efficiency of the national, State, regional, and local levels of 
the Department, and of improving the accessibility of farm and other 
programs at all levels. To the extent practicable, the Secretary shall 
adapt the administration of the programs to State, regional, and local 
conditions.
    (d) Exhaustion of Administrative Appeals.--Notwithstanding any 
other provision of law, a person shall exhaust all administrative 
appeal procedures established by the Secretary before the person may 
bring an action in a court of competent jurisdiction against--
            (1) the Secretary;
            (2) the Department;
            (3) an administrative unit of the Department; or
            (4) an employee or agent of an administrative unit of the 
        Department.
    (e) Conforming Amendments.--Section 9 of the Commodity Credit 
Corporation Charter Act (15 U.S.C. 714g) is amended--
            (1) in subsection (a), by striking ``(a)''; and
            (2) by striking subsection (b).

SEC. 2203. PERSONNEL REDUCTIONS.

    (a) Definitions.--As used in this section:
            (1) Field structure.--The term ``field structure'' means 
        the offices, functions, and employee positions of all 
        administrative units of the Department, other than the 
        headquarters offices. The term includes the physical and 
        geographic locations of the units. The term shall not include 
        State, county, or area committees established under section 
        8(b) of the Soil Conservation and Domestic Allotment Act (16 
        U.S.C. 590h(b)).
            (2) Headquarters offices.--The term ``headquarters 
        offices'' means the offices, functions, and employee positions 
        of all administrative units of the Department located or 
        performed in Washington, District of Columbia, or elsewhere, as 
        determined by the Secretary.
    (b) Employee Reductions.--Subject to subsection (c), the Secretary 
shall achieve employee reductions of at least 7,500 staff years within 
the Department by September 30, 1999.
    (c) Distribution.--The percentage of employee reductions in the 
headquarters offices under subsection (b) shall be substantially higher 
than the percentage of employee reductions in the field structure, as 
determined by the Secretary.
    (d) Schedule.--The personnel reductions under subsections (b) and 
(c) should be accomplished concurrently in a manner determined by the 
Secretary.

SEC. 2204. CONSOLIDATION OF HEADQUARTERS OFFICES.

    The Secretary shall develop and carry out a plan to consolidate 
offices of administrative units of the Department located in 
Washington, District of Columbia, subject to the availability of 
appropriations.

SEC. 2205. 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 to Congress or any committee of 
Congress.
    (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 Committee on 
Agriculture, Nutrition, and Forestry of the Senate, the Secretary shall 
determine which reports shall be prepared and submitted in accordance 
with subsection (b).

                 Subtitle C--National Appeals Division

SEC. 2301. DEFINITIONS.

    As used in this subtitle:
            (1) Adverse decision.--The term ``adverse decision'' means 
        an administrative decision made by a decisionmaker that is 
        adverse to a participant, including a denial of equitable 
        relief, except that the term shall not include a decision over 
        which the Board of Contract Appeals has jurisdiction. The term 
        shall include the failure of a decisionmaker to issue a 
        decision or otherwise act on the request or right of the 
        participant to participate in, or receive payments, loans, or 
        other benefits under, any of the programs administered by an 
        agency. Notwithstanding section 701(a)(2) of title 5, United 
        States Code, a discretionary decision of the Secretary or the 
        Division shall be reviewable under section 706(2)(A) of such 
        title unless the decision is generally applicable to all 
        program participants and, as a matter of general applicability, 
        is committed to agency discretion by law within the meaning of 
        section 701(a)(2) of such title.
            (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--
                    (A) ASCS;
                    (B) CCC, with respect to domestic programs;
                    (C) FmHA (including rural housing programs);
                    (D) FCIC;
                    (E) RDA (including rural housing programs);
                    (F) SCS; or
                    (G) a State or county committee established under 
                section 8(b) of the Soil Conservation and Domestic 
                Allotment Act (16 U.S.C. 590h(b)) or the Consolidated 
                Farm and Rural Development Act (7 U.S.C. 1921 et seq.).
            (3) Appellant.--The term ``appellant'' means a participant 
        who appeals an adverse decision in accordance with this 
        subtitle.
            (4) ASCS.--The term ``ASCS'' means the Agricultural 
        Stabilization and Conservation Service or a successor agency.
            (5) Case record.--The term ``case record'' means all the 
        materials maintained by the Secretary that concern the 
        participant, including any materials related to the adverse 
        decision.
            (6) CCC.--The term ``CCC'' means the Commodity Credit 
        Corporation or a successor agency.
            (7) Decisionmaker.--The term ``decision- maker'' means an 
        officer, employee, or committee of an agency who makes an 
        adverse decision that is appealed by an appellant.
            (8) Director.--The term ``Director'' means the Director of 
        the Division.
            (9) Division.--The term ``Division'' means the National 
        Appeals Division established by this subtitle.
            (10) Employee.--The term ``employee'' means an individual 
        employed by an agency, including an individual who enters into 
        a contract with an agency to perform services for the agency.
            (11) Final determination.--The term ``final determination'' 
        means a determination of an appeal by the Division that is 
        administratively final, conclusive, and binding.
            (12) FCIC.--The term ``FCIC'' means the Federal Crop 
        Insurance Corporation or a successor agency.
            (13) FmHA.--The term ``FmHA'' means the Farmers Home 
        Administration or a successor agency.
            (14) Hearing officer.--The term ``hearing officer'' means 
        an individual employed by the Division who hears and determines 
        appeals of adverse decisions by any agency.
            (15) Hearing record.--The term ``hearing record'' means the 
        transcript of a hearing, any audio tape or similar recording of 
        a hearing, any information from the case record that a hearing 
        officer considers relevant or that is raised by the appellant 
        or agency, and all documents and other evidence presented to a 
        hearing officer.
            (16) Implement; implementation.--The terms ``implement'' 
        and ``implementation'' refer to those actions necessary to 
        effectuate fully and promptly a determination of the Division 
        not later than 30 calendar days after the effective date of the 
        determination.
            (17) Participant.--The term ``participant'' means any 
        individual, group of individuals, partnership, corporation, 
        association, cooperative, or other entity whose application 
        for, or right to participate in or receive, payments, loans, or 
        other benefits in accordance with any of the programs 
        administered by an agency, is affected by an adverse decision 
        made by a decisionmaker.
            (18) RDA.--The term ``RDA'' means the Rural Development 
        Administration or a successor agency.
            (19) SCS.--The term ``SCS'' means the Soil Conservation 
        Service or a successor agency.
            (20) State director.--The term ``State director'' means the 
        individual who is primarily responsible for carrying out the 
        program of an agency within a State.

SEC. 2302. NATIONAL APPEALS DIVISION AND DIRECTOR.

    (a) Establishment of Division.--
            (1) Establishment.--The Secretary shall establish and 
        maintain a National Appeals Division within the Office of the 
        Secretary to carry out this subtitle.
            (2) APA application.--The provisions of title 5, United 
        States Code, shall apply to all appeals of the Division, 
        including chapters 5 and 7 of such title.
            (3) Procedural regulations and policies.--The Secretary 
        shall promulgate procedural regulations and policies to govern 
        the conduct of the business of the Division. The Secretary 
        shall ensure and enhance the independence, integrity, and 
        efficiency of the Division, the Director, hearing officers, and 
        other employees of the Division.
    (b) Director.--
            (1) Appointment.--The Division shall be headed by a 
        Director.
            (2) Position classification.--The position of the Director 
        shall be a Senior Executive Service position that shall be 
        filled by a career appointee (as defined in section 3132(a)(4) 
        of title 5, United States Code), who shall not be subject to 
        removal except for cause in accordance with law.
            (3) Qualifications.--The Director shall be a person who has 
        substantial experience in practicing administrative law. In 
        considering applicants for the position of Director, the 
        Secretary shall consider persons employed outside the 
        Government as well as Government employees.
            (4) Conforming amendment.--Section 5316 of title 5, United 
        States Code, is amended by adding at the end the following:
            ``Director, National Appeals Division, Department of 
        Agriculture.''.
    (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) Communication With Secretary and Agencies.--The Director shall 
inform the Secretary and the appropriate agency of problems regarding 
the functions of the agency that are identified as a result of the 
activities of the Division under this subtitle. The information 
provided by the Director may include proposals to resolve the problems 
identified or otherwise to improve the programs of the agency.
    (e) Appealable Decisions.--Subject to section 2304(b)(2), if a 
decisionmaker 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 or of general applicability, 
and thus appealable. Except for a legal interpretation that may be 
reversed or modified by the Secretary, the determination of the 
Director as to whether a decision is appealable shall be 
administratively final, conclusive, and binding.
    (f) Other Powers of the Director.--The Director may enter into 
contracts and make other arrangements for reporting and other services 
and make such payments as may be necessary to carry out this subtitle.

SEC. 2303. TRANSFER OF FUNCTIONS.

    There are transferred to the Division all functions exercised and 
all administrative appeals pending before the date of enactment of this 
Act (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 before the amendment made by section 2315(a)(2));
            (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 
        before the amendment made by section 2315(b));
            (3) appeals of decisions made by FCIC; and
            (4) appeals of decisions made by SCS.

SEC. 2304. PERSONNEL OF THE DIVISION.

    (a) Appointment, Direction, and Control.--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. Hearing officers shall be 
supervised by the Director. All other employees of the Division shall 
report to the Director.
    (b) Legal Counsel.--
            (1) In general.--The Director shall employ legal counsel to 
        advise the Director with respect to legal questions affecting 
        the Division. The legal counsel shall not serve as a counsel to 
        any other agency of the Department. This subsection is not 
        intended to affect the role of the Office of General Counsel in 
        representing the Department in civil or criminal actions or as 
        a liaison between the Department and any other Federal agency.
            (2) Review by the secretary.--If a hearing officer or the 
        Director disagrees with the General Counsel on a matter of 
        legal interpretation with respect to a program or authority of 
        the Department, the Secretary shall have the authority to make 
        a final determination on the interpretation at the request of 
        the General Counsel. The authority of the Secretary under this 
        paragraph may not be delegated.
    (c) Performance Evaluations.--The Director shall establish policies 
to provide for the evaluation of the Director, hearing officers, and 
other employees of the Division who are involved in the appeal process 
under section 2308 or the supervision of other employees. The 
evaluation process shall be designed to ensure and enhance the 
independence, integrity, and efficiency of the Director and employees 
of the Division. The actual evaluations shall include evaluations by 
individuals outside of the Department and may include peer review.

SEC. 2305. NOTICE AND OPPORTUNITY FOR HEARING.

    (a) Notice Required.--Not later than 10 working days after an 
adverse decision is made that is adverse to the participant, the 
Secretary shall provide the participant with the written notice 
described in subsection (b).
    (b) Content of Notice.--The notice required under subsection (a) 
shall contain a description of the following:
            (1) The decision, including all of the reasons, facts, and 
        conclusions underlying the decision.
            (2) The appeal and implementation process available to the 
        participant, including the rights and responsibilities of the 
        participant provided by this subtitle.
            (3) An opportunity to request a determination by the 
        Director pursuant to section 2302(e) concerning whether a 
        decision is appealable, if the decisionmaker determines that 
        the decision is not appealable.
    (c) Maintenance of Records.--The Secretary and the Director shall 
maintain the entire case record and hearing record, respectively, and 
any additional information from any further appeal proceeding, of the 
participant at least until the expiration of the period during which 
the participant may seek administrative or judicial review of the 
determination.
    (d) Joinder.--
            (1) Guaranteed loans.--With regard to a guaranteed loan 
        under the Consolidated Farm and Rural Development Act (7 U.S.C. 
        1921 et seq.), a borrower or applicant who is directly and 
        adversely affected by a decision of the Secretary may appeal 
        the decision pursuant to this subtitle without the lender 
        joining in the appeal.
            (2) Rental housing.--A tenant in rental housing of an 
        agency who is individually, directly, and adversely affected by 
        a decision of the Secretary may appeal the decision pursuant to 
        this subtitle without the landlord joining in the appeal.
            (3) Third parties.--If the Director determines that the 
        receipt of a payment, loan, or other direct benefit by a 
        participant may be directly, substantially, and adversely 
        affected by a determination of the Division, a hearing officer 
        may invite the participant to participate in a hearing if the 
        final determination resulting from the hearing would, as a 
        practical matter, foreclose the participant from receiving the 
        payment, loan, or other direct benefit of the participant. If 
        the participant elects to participate in the hearing, the 
        participant shall have the same procedural rights as the 
        appellant with regard to the hearing and other procedures 
        described in this subtitle.
    (e) Effect of Reversal or Modification of Adverse Decision.--If an 
adverse decision is reversed or modified by the Division, a 
decisionmaker may not base any subsequent adverse decision with regard 
to that appellant on the information that was available to the previous 
decisionmaker (or could have been available with reasonable diligence 
on the part of the previous decisionmaker).

SEC. 2306. INFORMAL HEARINGS.

    If a decisionmaker of an agency makes an adverse decision, the 
decisionmaker shall hold, at the request of the participant, an 
informal hearing on the decision.

SEC. 2307. RIGHTS OF PARTICIPANTS.

    Among other rights, a participant shall have the right, in 
accordance with this subtitle, to--
            (1) appeal any adverse decision;
            (2) representation by an attorney or nonattorney throughout 
        the informal hearing and appeals process under this subtitle;
            (3) access to, and a reasonable opportunity to inspect and 
        reproduce, the case record at an office of the agency located 
        in the area of the participant; and
            (4) an evidentiary hearing.

SEC. 2308. DIVISION HEARINGS AND DIRECTOR REVIEW.

    (a) Powers of Director and Hearing Officers.--To carry out their 
responsibilities under this section, the Director and hearing 
officers--
            (1) shall have access to all records, reports, audits, 
        reviews, documents, papers, recommendations, or other material 
        available that relate to programs and operations with respect 
        to which an appeal has been taken;
            (2) shall have the authorities that are provided under 
        section 2302(a)(2);
            (3) may request such information or assistance as may be 
        necessary for carrying out the duties and responsibilities 
        established under this subtitle from any Federal, State, or 
        local governmental agency or unit of the agency;
            (4) may, or shall at the request of an appellant with good 
        cause shown, require the attendance of witnesses and the 
        production of all information, documents, reports, answers, 
        records, accounts, papers, and other data and documentary 
        evidence necessary to the proper resolution of appeals;
            (5) may require the attendance of witnesses, and the 
        production of evidence, by subpoena; and
            (6) may administer oaths or affirmations.
    (b) Time for Hearing.--
            (1) In general.--Except as provided in paragraph (2), an 
        appellant shall have the right to--
                    (A) request a hearing, not later than 30 days after 
                the date an adverse decision is made; and
                    (B) have a hearing by the Division on the adverse 
                decision, not later than 45 days after receipt of the 
                request for the hearing.
            (2) Reduction or extension.--The Director may establish an 
        earlier deadline for a hearing (or request for a hearing) on an 
        appeal relating to a time sensitive decision, or delay a 
        hearing (or request for a hearing), at the request of an 
        appellant for good cause shown.
    (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 and 
        hearing record. The hearing officer shall conduct and resolve 
        the hearing (regardless of the hearing format) in a fair and 
        impartial manner and free of undue influence. 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, including new information, presented at 
        the hearing without regard to whether the evidence was known to 
        the decisionmaker 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 decisionmaker after the 
        hearing to the extent necessary to prevent the appellant or the 
        decisionmaker from being prejudiced by new facts, information, 
        arguments, or evidence presented or raised by the decisionmaker 
        or appellant. At the hearing, the agency may not rely on or 
        assert new grounds for the adverse decision, if the grounds 
        were not described in the agency decision notice.
            (4) Burden of proof.--The appellant shall bear the burden 
        of proving that the adverse decision of the agency was 
        erroneous.
            (5) Production of record.--An official verbatim record 
        shall be provided by the Division for each hearing before a 
        hearing officer. The appellant or agency representative may 
        record an unofficial record of the hearing.
            (6) Standard of review.--In any case pending before a 
        hearing officer, the hearing officer may determine that the 
        adverse decision was in error only if substantial evidence 
        demonstrates that the adverse decision was not correct. For 
        purposes of this paragraph, the evidentiary threshold for 
        substantial evidence is lower than the evidentiary threshold 
        for preponderance of the evidence.
            (7) 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 pursuant to subsection 
        (b)(2). The hearing officer may include recommendations in the 
        determination notice. If the determination is not appealed to 
        the Director under subsection (d), the notice provided by the 
        hearing officer shall be considered to be a notice of final 
        determination.
    (d) Review by Director.--
            (1) Referral.--At the request of the appellant or the head 
        of the agency affected by a determination of a hearing officer, 
        the determination of the hearing officer shall be referred to 
        the Director for review.
            (2) Appeal by head of agency to director.--
                    (A) Review of determination of hearing officer at 
                the request of an agency head.--In exceptional 
                circumstances, if the head of an agency believes that 
                the determination of a hearing officer is contrary to a 
                statute or regulation, or a finding of fact of a 
                hearing officer is clearly erroneous, only the head of 
                the agency may make a written request, not later than 
                10 business days after receipt of the determination, 
                that the Director review the determination.
                    (B) Requests for review.--A request for review 
                shall--
                            (i) include a full description of--
                                    (I) the exceptional circumstances 
                                justifying the request for review; and
                                    (II) the reasons that the head of 
                                the relevant agency believes that the 
                                determination is contrary to statute or 
                                regulation, or the finding of fact of 
                                the hearing officer is clearly 
                                erroneous; and
                            (ii) be provided to the appellant and the 
                        hearing officer at the same time the request is 
                        provided to the Director.
                    (C) Determination of director.--Not later than 10 
                business days after receipt of the request for review, 
                the Director shall--
                            (i) conduct a review of the determination 
                        based on the case record and hearing record, 
                        the request for review under subsection (b), 
                        and any additional arguments or information 
                        submitted by the appellant or the hearing 
                        officer; and
                            (ii)(I) issue a final determination notice 
                        that upholds, reverses, or modifies the 
                        determination of the hearing officer; or
                            (II) if the Director determines that the 
                        hearing record is inadequate, remand the 
                        determination for further proceedings to 
                        complete the hearing record, or, at the option 
                        of the Director, to hold a new hearing, and 
                        notify the appellant, agency, and hearing 
                        officer of the remand.
                    (D) New hearing.--If the Director remands a 
                determination for a new hearing on the adverse decision 
                under subparagraph (C), the hearing officer shall make 
                a new determination with respect to the adverse 
                decision based on the case record and the hearing 
                record.
                    (E) Finality.--The head of the relevant agency may 
                not request a second review as to the determination of 
                the hearing officer or the Director on the same issue.
            (3) Appeal by head of agency or appellant to director.--
                    (A) Use of record.--If the determination of a 
                hearing officer is appealed under paragraph (1), the 
                hearing officer shall certify the hearing record and 
                provide the record to the Director.
                    (B) New information.--The Director may consider, 
                under extraordinary circumstances, new information in 
                reviewing a determination under this section. The 
                appellant, decisionmaker, and hearing officer shall 
                receive and have the opportunity to comment on the new 
                information.
                    (C) Actions.--Not later than 30 days after the 
                referral to the Director, the Director shall--
                            (i) review the hearing record and the 
                        determination;
                            (ii) uphold the determination, issue a new 
                        determination, require that a new hearing be 
                        held on 1 or more of the issues considered at 
                        the original hearing, or take any combination 
                        of the actions described in this clause; and
                            (iii) issue a notice of--
                                    (I) a new evidentiary hearing;
                                    (II) a final determination; or
                                    (III) a remand on certain issues 
                                and a final determination on remaining 
                                issues.
                    (D) Recommendations.--The Director may include 
                recommendations in a final determination notice.
                    (E) Relief.--The Director shall have the same 
                authority as the Secretary to grant equitable relief. 
                Notwithstanding the administrative finality of a final 
                determination, the Secretary shall have the authority 
                to grant equitable or other types of relief to the 
                appellant after a final determination is issued by the 
                Division.
    (e) Basis for Determination.--The determination of the hearing 
officer and the Director shall be based on information from the hearing 
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. The 
Director shall not reverse the determination of a hearing officer with 
regard to a finding of fact that is based on oral testimony or 
inspection of evidence unless the finding of fact is clearly erroneous 
or the Director is considering new information under subsection (d)(3) 
with respect to the finding of fact.
    (f) 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. 2309. JUDICIAL REVIEW.

    A final determination of the Division under section 2308 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. Notwithstanding section 701(a)(2) of such title, a 
discretionary decision of the Secretary or the Division shall be 
reviewable under section 706(2)(A) of such title unless the decision is 
generally applicable to all program participants and, as a matter of 
general applicability, is committed to agency discretion by law within 
the meaning of section 701(a)(2) of such title.

SEC. 2310. IMPLEMENTATION OF FINAL DETERMINATIONS OF DIVISION.

    (a) In General.--On the return of a case to an agency pursuant to 
the final determination of a hearing officer or the Director under 
section 2308, the agency shall implement the final determination of the 
Division not later than 30 days after the effective date of the notice 
of the final determination.
    (b) Additional and Updated Information.--
            (1) In general.--Except as provided in paragraph (2), after 
        notice of a final determination is received by the agency--
                    (A) the agency may not require that additional and 
                updated information be provided by the appellant or 
                considered by the decisionmaker in implementing the 
                final determination of the hearing officer or the 
                Director; and
                    (B) additional and updated information from any 
                other source may not be used in implementing the final 
                determination.
            (2) Exceptions.--
                    (A) Introduction by appellant.--If additional 
                information is introduced by the appellant during the 
                appeal process and accepted by the hearing officer or 
                the Director, the agency shall consider the additional 
                information in implementing the final determination.
                    (B) Determination letter.--If the final 
                determination notice specifically states that 
                additional and updated information will be considered 
                in implementing the final determination, the agency 
                shall consider any additional and updated information 
                in implementing the final determination.
                    (C) Subsequent adverse decision.--Additional and 
                updated information considered under this paragraph may 
                not be used as a ground for a subsequent adverse 
                decision.
    (c) Implementation Responsibilities.--
            (1) State director.--Each State director shall be--
                    (A) required to implement final determinations of a 
                hearing officer or the Director that affect appellants 
                in the State; and
                    (B) responsible for monitoring and ensuring the 
                implementation of final determinations that reverse and 
                modify adverse decisions.
            (2) Agency heads.--Relevant agency heads shall be 
        responsible for--
                    (A) the performance of State directors under 
                paragraph (1); and
                    (B) the implementation of all final determinations 
                of the Division that reverse or modify adverse 
                decisions of the agency.
    (d) Protection of Appellants' Rights.--
            (1) In general.--No officer or employee of the Federal 
        Government shall make or engage in threats or intimidation, or 
        solicit action, to prevent any potential appellant from 
        exercising a right of the appellant under this subtitle or 
        make, solicit, or engage in retaliation or retribution for the 
        exercise of a right of an appellant under this subtitle.
            (2) Corrective action.--If an officer or employee of the 
        Federal Government violates paragraph (1), the Secretary shall 
        take corrective action (including the imposition of sanctions, 
        when necessary) in conformance with civil service laws.
    (e) Implementation Problems.--
            (1) Actions by relevant agency head.--The relevant agency 
        head shall promptly correct any problems that may arise in the 
        implementation of a final determination.
            (2) Oversight.--The Secretary shall assign employees within 
        the Office of the Inspector General whom appellants may contact 
        concerning problems with the implementation of final 
        determinations of the Division. The employees shall investigate 
        and, to the extent practicable, resolve the implementation 
        problems.
            (3) Identity and activities of oversight agency.--The 
        Secretary shall notify the Director of the business address and 
        telephone number of employees assigned under paragraph (2). The 
        Director shall include this information in the final 
        determination notice of the Division to an appellant.

SEC. 2311. DECISIONS OF STATE AND COUNTY COMMITTEES.

    (a) Finality.--Each decision of a State or county committee (or an 
employee of the committee) that administers functions of CCC, or 
functions assigned to ASCS on the date of enactment of this Act, 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--
            (1) appealed under this subtitle; or
            (2) modified by the Administrator of ASCS or the Executive 
        Vice President of CCC.
    (b) Recovery of Amounts.--No action shall be taken by the CCC, 
ASCS, or a State or county committee to recover amounts found to have 
been disbursed as a result of a decision in error if the decision of 
the State or county committee has become final under subsection (a), 
unless the participant had reason to believe that the decision was 
erroneous.

SEC. 2312. PROHIBITION ON ADVERSE ACTION WHILE APPEAL IS PENDING.

    (a) In General.--The Secretary may not take any adverse action 
against an appellant relating to an appeal while any proceeding 
authorized or required under this subtitle is pending, including any 
action that would prevent the implementation of a decision that is 
favorable to the appellant.
    (b) Withholding.--This section shall not preclude the Secretary 
from withholding a payment if the eligibility for, or amount of, the 
payment is an issue on appeal, except that ongoing assistance to then 
current borrowers and grantees shall not be discontinued pending the 
outcome of an appeal.

SEC. 2313. RELATIONSHIP TO OTHER LAWS.

    (a) Other Rights.--This subtitle is not intended to supersede or 
deprive a recipient of assistance from an agency of any rights that the 
recipient may have under any other law, including section 510(g) of the 
Housing Act of 1949 (42 U.S.C. 1480(g)).
    (b) Equitable Relief.--This subtitle is not intended to affect the 
authority of an agency head to grant equitable relief.
    (c) Employee Rights.--This subtitle shall neither supersede nor 
interfere with rights granted to employees or their exclusive 
representatives by applicable civil service laws.

SEC. 2314. EVALUATION OF AGENCY DECISIONMAKERS AND OTHER EMPLOYEES.

    (a) Evaluation in Annual Review.--The Secretary shall promulgate 
regulations to require the evaluation described in subsection (b) as 
part of the annual review of the performance of decisionmakers, State 
directors, and agency heads.
    (b) Performance.--In the review, a decisionmaker, a State director, 
or an agency head shall be considered to have performed poorly if the 
decisionmaker, State director, or agency head--
            (1) takes action that leads to numerous appeals that result 
        in adverse decisions that are reversed or modified;
            (2) fails to properly implement final determinations of the 
        Division;
            (3) fails to satisfactorily perform the reviewing and 
        monitoring responsibilities required under subsection (c) or 
        (e)(1) of section 2310, whichever applies; or
            (4) threatens or intimidates, or engages in retaliation or 
        retribution against, an appellant in violation of section 
        2310(d).
    (c) Sanctions.--If a decisionmaker, State director, or relevant 
agency head has performed poorly (as determined under subsection (b)), 
the Secretary shall issue sanctions against the decisionmaker, State 
director, or relevant agency head, as the case may be, which may 
include a formal reprimand or dismissal consistent with civil service 
laws.

SEC. 2315. CONFORMING AMENDMENTS.

    (a) ASCS.--
            (1) Finality of farmers payments and loans.--Section 385 of 
        the Agricultural Adjustment Act of 1938 (7 U.S.C. 1385) is 
        amended--
                    (A) by striking the first sentence and inserting 
                the following new sentence: ``As used in this section, 
                the term `payment' means any payment under the Soil 
                Conservation and Domestic Allotment Act (16 U.S.C. 590a 
                et seq.), any payment under the wheat, feed grain, 
                upland cotton, extra long staple cotton, and rice 
                programs authorized by the Agricultural Act of 1949 (7 
                U.S.C. 1421 et seq.) and this title, or any loan or 
                price support operation, or the amount of the payment, 
                loan, or price support.''; and
                    (B) in the second sentence, by striking ``any such 
                payment'' and inserting ``a payment''.
            (2) Determinations by secretary; appeals.--Sections 412 and 
        426 of the Agricultural Act of 1949 (7 U.S.C. 1429 and 1433e) 
        are repealed.
    (b) FmHA.--Section 333B of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1983b) is repealed.
    (c) FCIC.--The last sentence of section 508(f) of the Federal Crop 
Insurance Act (7 U.S.C. 1508(f)) is amended by inserting before the 
period at the end the following: ``or within 1 year after the claimant 
receives a final determination notice from an administrative appeal 
made in accordance with title II of the Department of Agriculture 
Reorganization Act of 1994, whichever is later''.

           Subtitle D--Farm and International Trade Services

SEC. 2401. UNDER SECRETARY FOR FARM AND INTERNATIONAL TRADE SERVICES.

    (a) Establishment.--There is established in the Department the 
position of Under Secretary of Agriculture for Farm and International 
Trade Services (referred to in this section as the ``Under 
Secretary''), to be appointed by the President, by and with the advice 
and consent of the Senate.
    (b) Duties.--The Under Secretary shall exercise such functions and 
perform such duties related to farm and international trade services, 
and shall perform such other duties, as may be required by law or 
prescribed by the Secretary.
    (c) Continuity of the Position.--Any official serving as Under 
Secretary for International Affairs and Commodity Programs on the date 
of enactment of this Act, who has been appointed by the President and 
confirmed by the Senate, shall be considered on and after the date of 
enactment of this Act to be serving in the successor position 
established by subsection (a), and shall not be required to be 
reconfirmed by reason of the enactment of this title.
    (d) Conforming Amendments.--
            (1) 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 International Trade 
        Services.''.
            (2) Section 501 of the Agricultural Trade Act of 1978 (7 
        U.S.C. 5691) is repealed.

SEC. 2402. FARM SERVICE AGENCY.

    (a) Establishment.--The Secretary is authorized to establish and 
maintain a Farm Service Agency (referred to in this section as the 
``Agency'') and assign to the Agency such functions as the Secretary 
may consider appropriate.
    (b) Head.--
            (1) Agency.--If the Secretary establishes the Agency, the 
        Agency or any successor administrative unit shall be headed by 
        an Administrator who shall be appointed by the President, by 
        and with the advice and consent of the Senate.
            (2) FCIC.--The Secretary may appoint the Administrator of 
        the Agency, or any other person, to serve as head of the 
        Federal Crop Insurance Corporation.
    (c) Functions.--Except as provided in subsection (d), the Secretary 
is authorized to carry out through the Agency--
            (1) price and income support, production adjustment, and 
        other related functions;
            (2) functions of the Federal Crop Insurance Corporation;
            (3) notwithstanding section 331 of the Consolidated Farm 
        and Rural Development Act (7 U.S.C. 1981), agricultural credit 
        functions assigned prior to the date of enactment of this Act 
        to the Farmers Home Administration, including farm ownership, 
        operating, emergency, and disaster loan functions, and other 
        lending programs for producers of agricultural commodities; and
            (4) any other function or administrative unit that the 
        Secretary considers appropriate.
    (d) Functions Not Assignable to the Agency.--Except as otherwise 
determined by the Secretary, functions relating to conservation 
programs authorized to be assigned to the Natural Resources 
Conservation Service established under section 2701 may not be assigned 
to the Agency.
    (e) Use of Employees.--Notwithstanding any other provision of law, 
in carrying out in any county or area any functions assigned to the 
Agency or any successor administrative area, the Secretary is 
authorized to--
            (1) use interchangeably, in the implementation of 
        functions, Federal employees, and employees of county and State 
        committees established under section 8(b) of the Soil 
        Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)); 
        and
            (2) provide interchangeably for supervision by the 
        employees of the performance of functions assigned to the 
        Agency.
    (f) Collocation.--The Secretary, to the maximum extent practicable, 
shall collocate county offices of the 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 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) Continuity of the Position.--Any official serving on the date 
of enactment of this Act, who has been appointed by the President and 
confirmed by the Senate, shall not be required to be reconfirmed by 
reason of the enactment of this title.
    (h) Conforming Amendments.--
            (1) The second sentence of section 505(a) of the Federal 
        Crop Insurance Act (7 U.S.C. 1505(a)) is amended 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 or 
        Assistant Secretary of Agriculture, as designated by the 
        Secretary,''.
            (2) Section 507(d) of the Federal Crop Insurance Act (7 
        U.S.C. 1507(d)) is amended by striking ``section 516 of this 
        Act,'' and all that follows through the period at the end of 
        the subsection and inserting ``section 516.''.
            (3) 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 administrative units of 
        the Department of Agriculture as the Secretary may consider 
        appropriate.''.

SEC. 2403. STATE AND COUNTY COMMITTEES.

    Section 8(b) of the Soil Conservation and Domestic Allotment Act 
(16 U.S.C. 590h(b)) is amended--
            (1) by designating the first through eighth undesignated 
        paragraphs as paragraphs (1) through (8), respectively; and
            (2) in paragraph (5) (as so designated) by adding at the 
        end the following new sentence: ``The Secretary is authorized, 
        after consultation with the State committee of the State in 
        which the affected counties are located, to terminate, combine, 
        and consolidate two or more county committees established under 
        this subsection.''.

SEC. 2404. INTERNATIONAL TRADE SERVICE.

    (a) Establishment.--The Secretary is authorized to establish and 
maintain an International Trade Service (referred to in this section as 
the ``Service'') and to assign to the Service such functions or 
administrative units as the Secretary may consider appropriate and 
consistent with this title.
    (b) Head.--If the Secretary establishes the Service, the Service or 
any successor administrative unit shall be headed by an Administrator 
who shall be appointed by the President, by and with the advice and 
consent of the Senate.
    (c) Functions.--The Secretary is authorized to carry out, through 
the Service or through such other officers or administrative units as 
the Secretary may consider appropriate, programs and activities 
involving--
            (1) the acquisition of information pertaining to 
        agricultural trade;
            (2) market promotion and development;
            (3) promotion of exports of United States agricultural 
        commodities;
            (4) administration of international food assistance; and
            (5) international development, technical assistance, and 
        training.
    (d) Continuity of the Position.--Any official serving on the date 
of enactment of this Act, who has been appointed by the President and 
confirmed by the Senate, shall not be required to be reconfirmed by 
reason of the enactment of this title.
    (e) Conforming Amendments.--Sections 502 and 503 of the 
Agricultural Trade Act of 1978 (7 U.S.C. 5692 and 5693) are repealed.

          Subtitle E--Rural Economic and Community Development

SEC. 2501. UNDER SECRETARY FOR RURAL ECONOMIC AND COMMUNITY 
              DEVELOPMENT.

    (a) Establishment.--Subsection (a) of section 3 of the Rural 
Development Policy Act of 1980 (7 U.S.C. 2211b) is amended to read as 
follows:
    ``(a)(1) There is established in the Department of Agriculture the 
position of Under Secretary of Agriculture for Rural Economic and 
Community Development to be appointed by the President, by and with the 
advice and consent of the Senate.
    ``(2) The Under Secretary of Agriculture for Rural Economic and 
Community Development shall exercise such functions and perform such 
duties related to rural economic and community development, and shall 
perform such other duties, as may be required by law or prescribed by 
the Secretary of Agriculture.''.
    (b) Continuity of Position.--Any official serving as Under 
Secretary of Agriculture for Small Community and Rural Development on 
the date of enactment of this Act, after appointment by the President, 
by and with the advice and consent of the Senate, shall be considered 
after the date of enactment of this Act to be serving in the successor 
position established by the amendment made by subsection (a), and shall 
not be required to be reconfirmed by reason of the enactment of this 
title.
    (c) Conforming Amendment.--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.''.

SEC. 2502. RURAL UTILITIES SERVICE.

    (a) Establishment.--Notwithstanding section 364 of the Consolidated 
Farm and Rural Development Act (7 U.S.C. 2006f) and any other provision 
of law, the Secretary is authorized to establish and maintain within 
the Department the Rural Utilities Service (referred to in this section 
as the ``Service'') and to assign to the Service such functions and 
administrative units as the Secretary may consider appropriate.
    (b) Head.--If the Secretary establishes the Service, the Service or 
any successor administrative unit shall be headed by an Administrator 
who shall be appointed by the President, by and with the advice and 
consent of the Senate.
    (c) Functions.--The Secretary may carry out through the Service, or 
through any other officer or administrative unit as the Secretary may 
consider appropriate--
            (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).
    (d) Continuity of the Position.--Any official serving on the date 
of enactment of this Act, who has been appointed by the President and 
confirmed by the Senate, shall not be required to be reconfirmed by 
reason of the enactment of this title.
    (e) Conforming Amendments to the Rural Electrification Act.--
            (1) The first section of the Rural Electrification Act of 
        1936 (7 U.S.C. 901) is amended by striking ``there is'' and all 
        that follows through ``This Act'' and inserting ``this Act''.
            (2) Section 2 of such Act (7 U.S.C. 902) is amended by 
        striking ``Administrator'' and inserting ``Secretary of 
        Agriculture''.
            (3) Section 3(a) of such Act (7 U.S.C 903(a)) is amended--
                    (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) Section 8 of such Act (7 U.S.C. 908) is amended--
                    (A) in the first sentence, by striking 
                ``Administrator authorized to be appointed by this 
                Act'' and inserting ``Secretary''; and
                    (B) in the second sentence, by striking ``Rural 
                Electrification Administration created by this Act'' 
                and inserting ``Secretary''.
            (5) Section 11A of such Act (7 U.S.C. 911a) is repealed.
            (6) Section 13 of such Act (7 U.S.C. 913) is amended by 
        inserting before the period the following: ``; and the term 
        `Secretary' means the Secretary of Agriculture''.
            (7) Sections 206(b)(2), 306A(b), 311, and 405(b)(1)(A) of 
        such Act (7 U.S.C. 927(b)(2), 936a(b), 940a, and 945(b)(1)(A)) 
        are amended by striking ``Rural Electrification 
        Administration'' each place it appears and inserting 
        ``Secretary''.
            (8) Section 403(b) of such Act (7 U.S.C. 943(b)) is amended 
        by striking ``Rural Electrification Administration or of any 
        other agency of the Department of Agriculture,'' and inserting 
        ``Secretary''.
            (9) Section 404 of such Act (7 U.S.C. 944) is amended by 
        striking ``the Administrator of the Rural Electrification 
        Administration'' and inserting ``the Secretary of Agriculture 
        shall designate an official of the Department of Agriculture 
        who''.
            (10) Sections 406(c) and 410(a)(1) of such Act (7 U.S.C. 
        946(c) and 950) are amended by striking ``Administrator of the 
        Rural Electrification Administration'' each place it appears 
        and inserting ``Secretary''.
            (11) Such Act (7 U.S.C. 901 et seq.) is amended by striking 
        ``Administrator'' each place it appears and inserting 
        ``Secretary''.
    (f) Miscellaneous Conforming 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 pursuant to the 
        Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.)''.
            (2) The second undesignated paragraph of section 401 of the 
        Rural Electrification Act of 1938 (52 Stat. 818; 7 U.S.C. 903 
        note) is amended by striking ``Administrator of the Rural 
        Electrification Administration'' and inserting ``Secretary of 
        Agriculture''.
            (3) Section 15 of the Department of Agriculture Organic Act 
        of 1944 (7 U.S.C. 915) is amended by striking ``Rural 
        Electrification Administration'' and inserting ``Secretary''.
            (4)(A) Section 2333 of the Food, Agriculture, Conservation, 
        and Trade Act of 1990 (7 U.S.C. 950aaa-2) is amended--
                    (i) by striking paragraph (1); and
                    (ii) by redesignating paragraphs (2) through (11) 
                as paragraphs (1) through (10), respectively.
            (B) Chapter 1 of subtitle D of title XXIII of such Act (7 
        U.S.C. 950aaa et seq.) is amended by striking ``Administrator'' 
        each place it appears and inserting ``Secretary''.

SEC. 2503. RURAL HOUSING AND COMMUNITY DEVELOPMENT SERVICE.

    (a) Establishment.--Notwithstanding section 364 of the Consolidated 
Farm and Rural Development Act (7 U.S.C. 2006f) and any other provision 
of law, the Secretary is authorized to establish and maintain within 
the Department the Rural Housing and Community Development Service 
(referred to in this section as the ``Service'') and to assign to the 
Service such functions as the Secretary may consider appropriate.
    (b) Functions.--The Secretary is authorized to carry out through 
the Service, or through any other officer or administrative unit as the 
Secretary may consider appropriate--
            (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; and
            (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 through 2008d).

SEC. 2504. RURAL BUSINESS AND COOPERATIVE DEVELOPMENT SERVICE.

    (a) Establishment.--Notwithstanding section 364 of the Consolidated 
Farm and Rural Development Act (7 U.S.C. 2006f) and any other provision 
of law, the Secretary is authorized to establish and maintain within 
the Department the Rural Business and Cooperative Development Service 
(referred to in this section as the ``Service''), and to assign to the 
Service such functions as the Secretary may consider appropriate.
    (b) Functions.--The Secretary is authorized to carry out through 
the Service, or through any other officer or administrative unit as the 
Secretary may consider appropriate, programs and activities, 
including--
            (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); and
            (5) the Act of July 2, 1926 (44 Stat. 802, chapter 725; 7 
        U.S.C. 451 et seq.).

           Subtitle F--Food, Nutrition, and Consumer Services

SEC. 2601. UNDER SECRETARY OF AGRICULTURE FOR FOOD, NUTRITION, AND 
              CONSUMER SERVICES.

    (a) Establishment.--There is established in the Department the 
position of Under Secretary of Agriculture for Food, Nutrition, and 
Consumer Services to be appointed by the President, by and with the 
advice and consent of the Senate.
    (b) Duties.--The Under Secretary of Agriculture for Food, 
Nutrition, and Consumer Services shall exercise such functions and 
perform such duties related to food, nutrition, and consumer services, 
and shall perform such other duties, as may be required by law or 
prescribed by the Secretary.
    (c) Continuity of the Position.--Any official serving as Assistant 
Secretary of Agriculture for Food and Consumer Services on the date of 
enactment of this Act, after appointment by the President, by and with 
the advice and consent of the Senate, shall be considered to be serving 
in the successor position established by subsection (a), and shall not 
be required to be reconfirmed by reason of the enactment of this title.
    (d) Conforming Amendment.--Section 5314 of title 5, United States 
Code, is amended by adding at the end the following:
            ``Under Secretary of Agriculture for Food, Nutrition, and 
        Consumer Services.''.

SEC. 2602. FOOD AND CONSUMER SERVICE.

    (a) Establishment.--The Secretary is authorized to establish and 
maintain within the Department the Food and Consumer Service (referred 
to in this section as the ``Service'') and to assign to the Service 
such functions as the Secretary may consider appropriate.
    (b) Functions.--The Secretary is authorized to carry out through 
the Service, or through any other officer or administrative unit as the 
Secretary may consider appropriate, programs and activities, 
including--
            (1) the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.);
            (2) the National School Lunch Act (42 U.S.C. 1751 et seq.); 
        and
            (3) the Child Nutrition Act of 1966 (42 U.S.C. 1771 et 
        seq).

SEC. 2603. NUTRITION RESEARCH AND EDUCATION SERVICE.

    (a) Establishment.--The Secretary is authorized to establish and 
maintain within the Department the Nutrition Research and Education 
Service (referred to in this section as the ``Service'') and to assign 
to the Service such functions as the Secretary may consider 
appropriate.
    (b) Functions.--The Secretary is authorized to carry out through 
the Service, or through any other officer or administrative unit as the 
Secretary may consider appropriate, programs and activities relating to 
human nutrition research and education.

             Subtitle G--National Resources and Environment

SEC. 2701. NATURAL RESOURCES CONSERVATION SERVICE.

    (a) Establishment.--The Secretary is authorized to establish and 
maintain within the Department the Natural Resources Conservation 
Service (referred to in this section as the ``Service'') and to assign 
to the Service such functions as the Secretary may consider 
appropriate.
    (b) Functions.--The Secretary is authorized to carry out through 
the Service, or through any other officer or administrative unit of the 
Department as the Secretary may consider appropriate, programs and 
activities, including--
            (1) title X of the Agricultural Act of 1970 (16 U.S.C. 1501 
        et seq.);
            (2) the Soil Conservation and Domestic Allotment Act (16 
        U.S.C. 590a et seq.);
            (3) the Water Bank Act (16 U.S.C. 1301 et seq.);
            (4) 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.);
            (6) title IV of the Agricultural Credit Act of 1978 (16 
        U.S.C. 2201 et seq.);
            (7) section 202(c) of the Colorado River Basin Salinity 
        Control Act (43 U.S.C. 1592(c)); and
            (8) the Farms for the Future Act of 1990 (7 U.S.C. 4201 
        note).
    (c) Use of Employees.--Notwithstanding any other provision of law, 
in carrying out in any county or area any functions assigned to the 
Service or any successor administrative unit, the Secretary is 
authorized to--
            (1) use interchangeably, in the implementation of 
        functions, Federal employees, and employees of county and area 
        committees established under section 8(b) of the Soil 
        Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)); 
        and
            (2) provide interchangeably for supervision by the 
        employees of the performance of functions assigned to the 
        Service.
    (d) Agricultural Conservation Program.--In carrying out the 
Agricultural Conservation Program, the Secretary shall--
            (1) acting on the recommendations of the Service, with the 
        concurrence of the Farm Service Agency, issue regulations to 
        carry out the program; and
            (2) use a county committee established under section 8(b) 
        of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 
        590h(b)) to make the final decision on which applicants are 
        eligible to receive cost share assistance under the program 
        based on priorities and guidelines established at the national 
        and State levels by the Service.
    (e) Conforming Amendments.--
            (1) Section 5 of the Soil Conservation and Domestic 
        Allotment Act (16 U.S.C. 590e) is repealed.
            (2)(A) Section 2(2) of the Soil and Water Resources 
        Conservation Act of 1977 (16 U.S.C. 2001(2)) is amended by 
        striking ``the Soil Conservation Service of''.
            (B) Section 3(2) of such Act (16 U.S.C. 2002(2)) is amended 
        by striking ``through the Soil Conservation Service''.
            (C) The first sentence of section 6(a) of such Act (16 
        U.S.C. 2005(a)) is amended by striking ``Soil Conservation 
        Service'' and inserting ``Secretary''.

SEC. 2702. REORGANIZATION OF FOREST SERVICE.

    (a) In General.--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 (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) and identifies any disparities in regional funding 
patterns and the rationale behind the disparities.

             Subtitle H--Marketing and Inspection Services

SEC. 2801. GRAIN INSPECTION, PACKERS AND STOCKYARDS ADMINISTRATION.

    (a) Establishment.--The Secretary is authorized to establish and 
maintain within the Department the Grain Inspection, Packers and 
Stockyards Administration (referred to in this section as the 
``Administration'') and to assign to the Administration such functions 
as the Secretary may consider appropriate.
    (b) Functions.--The Secretary is authorized to carry out through 
the Administration, or through any other officer or administrative unit 
as the Secretary may consider appropriate, programs and activities 
authorized under--
            (1) the United States Grain Standards Act (7 U.S.C. 71 et 
        seq.); and
            (2) the Packers and Stockyards Act, 1921 (7 U.S.C. 181 et 
        seq.).
    (c) Conforming Amendments.--
            (1)(A) Section 3 of the United States Grain Standards Act 
        (7 U.S.C. 75) is amended--
                    (i) by striking subsections (z) and (aa); and
                    (ii) by redesignating subsection (bb) as subsection 
                (z).
            (B) Section 3A of such Act (7 U.S.C. 75a) is repealed.
            (C) Section 5(b) of such Act (7 U.S.C. 77(b)) is amended by 
        striking ``Service employees'' and inserting ``employees of the 
        Secretary''.
            (D) The first sentences of each of sections 7(j)(2) and 
        7A(l)(2) of such Act (7 U.S.C. 79(j)(2) and 79a(l)(2), 
        respectively) are amended by striking ``supervision by Service 
        personnel of its field office personnel'' and inserting 
        ``supervision by the Secretary of the field office personnel of 
        the Secretary''.
            (E) Section 12 of such Act (7 U.S.C. 87a) is amended--
                    (i) in the first sentence of subsection (c), by 
                striking ``or Administrator''; and
                    (ii) in subsection (d), by striking ``or the 
                Administrator''.
            (F) Such Act (7 U.S.C. 71 et seq.) is amended by striking 
        ``Administrator'' and ``Service'' each place either term 
        appears and inserting ``Secretary''.
            (2) Section 407 of the Packers and Stockyards Act, 1921 (7 
        U.S.C. 228) is amended--
                    (A) by striking subsection (b);
                    (B) by redesignating subsections (c) through (f) as 
                subsections (b) through (e), respectively; and
                    (C) in subsection (e) (as so designated), by 
                striking ``subsection (e)'' and inserting ``subsection 
                (d)''.

             Subtitle I--Research, Economics, and Education

SEC. 2901. FEDERAL RESEARCH AND INFORMATION SERVICE.

    (a) Establishment.--The Secretary is authorized to establish and 
maintain within the Department the Federal Research and Information 
Service (referred to in this section as the ``Service'') and to assign 
to the Service such functions as the Secretary may consider 
appropriate.
    (b) Functions.--The Secretary is authorized to carry out through 
the Service, or through any other officer or administrative unit as the 
Secretary may consider appropriate, programs and activities, 
including--
            (1) agricultural research; and
            (2) agricultural information and library services.

SEC. 2902. COOPERATIVE STATE RESEARCH AND EDUCATION SERVICE.

    (a) Establishment.--The Secretary is authorized to establish and 
maintain within the Department the Cooperative State Research and 
Education Service (referred to in this section as the ``Service'') and 
to assign to the Service such functions as the Secretary may consider 
appropriate.
    (b) Functions.--The Secretary is authorized to carry out through 
the Service programs and activities, including--
            (1) cooperative research programs; and
            (2) agricultural extension and education programs.

SEC. 2903. AGRICULTURAL ECONOMICS AND STATISTICS SERVICE.

    (a) Establishment.--The Secretary may establish and maintain within 
the Department the Agricultural Economics and Statistics Service 
(referred to in this section as the ``Service'') and to assign to the 
Service such functions as the Secretary may consider appropriate.
    (b) Functions.--The Secretary may carry out through the Service, or 
through any other officer or administrative unit as the Secretary may 
consider appropriate, programs and activities, including--
            (1) economic analysis and research;
            (2) energy-related programs;
            (3) crop and livestock estimates; and
            (4) agricultural statistics.
    (c) State and Local Statistical Offices and Personnel.--The 
authority provided by subsections (a) and (b) shall not authorize a 
substantial change in the functions or structures of State and local 
statistical offices and employees of the offices.

SEC. 2904. PROGRAM POLICY AND COORDINATION STAFF.

    (a) Establishment.--The Secretary is authorized to establish and 
maintain within the Department the Program Policy and Coordination 
Staff (referred to in this section as the ``Staff'') and to assign to 
the Staff such functions as the Secretary may consider appropriate.
    (b) Functions.--If the Staff is established and maintained, the 
Staff shall provide common program policy development for the Federal 
Research and Information Service, the Cooperative State Research and 
Education Service, and the Agricultural Economics and Statistics 
Service.
    (c) Composition.--Not less than 50 percent of the employees of the 
Staff shall be former employees of the Cooperative State Research 
Service and the Extension Service, as in existence on the date of 
enactment of this Act.
    (d) Relationship to Functions Currently Performed by NASS.--The 
Staff may not--
            (1) interfere with statistic collection and reporting; or
            (2) compromise the independence or integrity of statistic 
        collection and reporting functions of the National Agricultural 
        Statistics Service as in effect on the date of enactment of 
        this Act.

                        Subtitle J--Food Safety

SEC. 2951. FOOD SAFETY SERVICE.

    (a) Meat Inspection.--The Federal Meat Inspection Act (21 U.S.C. 
601 et seq.) is amended by adding at the end the following new title:

                     ``TITLE V--FOOD SAFETY SERVICE

``SEC. 501. FOOD SAFETY SERVICE.

    ``(a) In General.--The Secretary shall establish and maintain 
within the United States Department of Agriculture the Food Safety 
Service (referred to in this section as the `Service') and to assign to 
the Service such functions as the Secretary may consider appropriate.
    ``(b) Assistant Secretary for Food Safety.--
            ``(1) Appointment.--There shall be in the Service the 
        position of Assistant Secretary for Food Safety (referred to in 
        this section as the `Assistant Secretary'), who shall be 
        appointed by the President, by and with the advice and consent 
        of the Senate.
            ``(2) Continuity of the position.--Any official serving on 
        the date of enactment of this section, who has been appointed 
        by the President and confirmed by the Senate, shall not be 
        required to be reconfirmed by reason of the enactment of this 
        Act.
            ``(3) Relationship to the secretary.--The Assistant 
        Secretary shall report directly to the Secretary.
            ``(4) General powers.--The Secretary is authorized to carry 
        out, through the Service or through such other officers or 
        administrative units as the Secretary may consider appropriate, 
        programs and activities involving food safety under this Act 
        and the Poultry Products Inspection Act (21 U.S.C. 451 et 
        seq.), including--
                    ``(A) providing overall direction to the Service 
                and establishing and implementing general policies 
                concerning the management and operation of programs and 
                inspection activities of the Service;
                    ``(B) coordinating and overseeing the operation of 
                all administrative entities within the Service;
                    ``(C) research and inspection relating to meat, 
                meat food products, poultry, and poultry products in 
                carrying out this Act and the Poultry Products 
                Inspection Act;
                    ``(D) conducting educational and public information 
                programs relating to the responsibilities of the 
                Service; and
                    ``(E) performing such other functions related to 
                food safety as the Secretary may prescribe, except that 
                only programs and activities related to food safety, as 
                determined by the Secretary, shall be administered 
                through the Service.
    ``(c) Technical and Scientific Review Groups.--The Secretary, 
acting through the Assistant Secretary, 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 Service, 
        including functions under this Act and under the Poultry 
        Products Inspection Act (21 U.S.C. 451 et seq.); 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.''.
    (b) Poultry Products Inspection.--The Poultry Products Inspection 
Act (21 U.S.C. 451 et seq.) is amended--
            (1) by redesignating section 29 as section 30; and
            (2) by inserting after section 28 the following new 
        section:

``SEC. 29. ADMINISTRATION.

    ``The Secretary shall administer this Act through the Assistant 
Secretary for Food Safety of the Food Safety Service established under 
section 501 of the Federal Meat Inspection Act.''.

                       Subtitle K--Miscellaneous

SEC. 2981. ASSISTANT SECRETARIES OF AGRICULTURE.

    (a) Establishment.--There are established in the Department six 
positions of Assistant Secretary of Agriculture, each to be appointed 
by the President, by and with the advice and consent of the Senate.
    (b) Functions.--Each Assistant Secretary of Agriculture shall 
exercise such functions and perform such duties as may be required by 
law or prescribed by the Secretary, and shall receive compensation at 
the rate prescribed by law for an Assistant Secretary of Agriculture. 
The compensation of any person serving as an Administrator shall not be 
raised by this title.
    (c) Conforming Amendments.--
            (1) Section 2 of the Act of February 9, 1889 (25 Stat. 659, 
        chapter 122; 7 U.S.C. 2212), is repealed.
            (2) Section 604 of the Rural Development Act of 1972 (7 
        U.S.C. 2212a) is amended by striking subsection (a).
            (3) Section 2 of Public Law No. 94-561 (7 U.S.C. 2212b) is 
        repealed.
            (4) Section 1413 of the National Agricultural Research, 
        Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3128) is 
        amended by striking subsection (d).
            (5) Section 8 of the International Carriage of Perishable 
        Foodstuffs Act (7 U.S.C 2212c) is amended by striking 
        subsection (a).
    (d) Continuity of Positions.--Notwithstanding subsections (a) and 
(b) and the amendments made by subsection (c), any official serving in 
any of the positions referred to in this section on the date of 
enactment of this Act, after appointment by the President, by and with 
the advice and consent of the Senate, shall be considered after the 
date of enactment of this Act to be serving in the successor positions 
established by subsection (a) and shall not be required to be 
reappointed by reason of the enactment of this title.
    (e) Additional Conforming Amendments.--Section 5315 of title 5, 
United States Code, is amended--
            (1) by striking ``Assistant Secretaries of Agriculture 
        (7)'' and inserting ``Assistant Secretaries of Agriculture 
        (six)''; and
            (2) by adding at the end the following:
            ``Administrator, Farm Service Agency, Department of 
        Agriculture.
            ``Administrator, International Trade Service, Department of 
        Agriculture.
            ``Administrator, Rural Utilities Service, Department of 
        Agriculture.''.

SEC. 2982. REMOVAL OF OBSOLETE 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. 2983. ADDITIONAL CONFORMING AMENDMENTS.

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

SEC. 2984. 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; or
            (2) the authority delegated to the Secretary under 
        Reorganization Plan No. 2 of 1953 (5 U.S.C. App. 1).

SEC. 2985. ELIMINATION OF DUPLICATIVE INSPECTION REQUIREMENTS.

    (a) In General.--The Secretary of Agriculture shall--
            (1) eliminate inspections of pilots and aircraft by the 
        Department of Agriculture;
            (2) develop with the Administrator of the Federal Aviation 
        Administration inspection specifications and procedures by 
        which aircraft and pilots contracted by the United States 
        Department of Agriculture will be inspected. The Administrator 
        will ensure that the inspection specifications and procedures 
        are met; and
            (3) permit the utilization by the Department of Agriculture 
        of inspections and certifications of pilots and aircraft 
        conducted by the Federal Aviation Administration.
    (b) Applicability.--An inspection requirement shall be eliminated 
pursuant to subsection (a)(1) only if the pilots and aircraft are 
inspected by the Federal Aviation Administration for compliance with 
the safety regulations of the Federal Aviation Regulations.
            Attest:

                                                             Secretary.
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