H. R. 4217

One Hundred Third Congress

of the

United States of America

AT THE SECOND SESSION

Begun and held at the City of Washington on Tuesday,

the twenty-fifth day of January, one thousand nine hundred and ninety-four

An Act

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

Be it enacted by the Senate and House of Representatives of

the United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) SHORT TITLE.—This Act may be cited as the ‘‘Federal Crop

Insurance Reform and Department of Agriculture Reorganization

Act of 1994’’.

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

is as follows:

Sec. 1. Short title; table of contents.

TITLE I—FEDERAL CROP INSURANCE REFORM

Sec. 101. Short title; references.

Sec. 102. Definitions.

Sec. 103. Members of Board of Directors of Corporation. Sec. 104. General powers. Sec. 105. Personnel.

Sec. 106. Crop insurance. Sec. 107. Crop insurance yield coverage. Sec. 108. Preemption. Sec. 109. Advisory Committee. Sec. 110. Funding. Sec. 111. Noninsured crop disaster assistance. Sec. 112. Payment and income limitations. Sec. 113. Producer eligibility. Sec. 114. Ineligibility for catastrophic risk and noninsured assistance payments. Sec. 115. Elimination of gender references. Sec. 116. Prevented planting. Sec. 117. Report on improving dissemination of crop insurance information. Sec. 118. Crop insurance provider evaluation. Sec. 119. Conforming amendments. Sec. 120. Effective date.

TITLE II—DEPARTMENT OF AGRICULTURE REORGANIZATION

Sec. 201. Short title.

Sec. 202. Purpose. Sec. 203. Definitions.

Subtitle A—General Reorganization Authorities

Sec. 211. Transfer of Department functions to Secretary of Agriculture. Sec. 212. Authority of Secretary to delegate transferred functions. Sec. 213. Reductions in number of department personnel. Sec. 214. Consolidation of headquarters offices. Sec. 215. Combination of field offices.

Sec. 216. Improvement of information sharing. Sec. 217. Reports by the Secretary. Sec. 218. Assistant Secretaries of Agriculture. Sec. 219. Pay increases prohibited.

Subtitle B—Farm and Foreign Agricultural Services

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

Subtitle C—Rural Economic and Community Development

Sec. 231. Under Secretary of Agriculture for Rural Economic and Community Development. Sec. 232. Rural Utilities Service.

Sec. 233. Rural Housing and Community Development Service. Sec. 234. Rural Business and Cooperative Development Service. Sec. 235. Conforming amendments regarding Rural Electrification Administration.

Subtitle D—Food, Nutrition, and Consumer Services

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

Subtitle E—Natural Resources and Environment

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

Sec. 247. Reorganization of Forest Service.

Subtitle F—Research, Education, and Economics

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

Subtitle G—Food Safety

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

Subtitle H—National Appeals Division

Sec. 271. Definitions.

Sec. 272. National Appeals Division and Director. Sec. 273. Transfer of functions.

Sec. 274. Notice and opportunity for hearing. Sec. 275. Informal hearings. Sec. 276. Right of participants to Division hearing. Sec. 277. Division hearings. Sec. 278. Director review of determinations of hearing officers. Sec. 279. Judicial review.

Sec. 280. Implementation of final determinations of Division. Sec. 281. Conforming amendments relating to National Appeals Division. Sec. 282. Expansion of issues covered by State mediation programs. Sec. 283. Authorization of appropriations.

Subtitle I—Miscellaneous Reorganization Provisions

Sec. 291. Successorship provisions relating to bargaining units and exclusive representatives.

Sec. 292. Purchase of American-made equipment and products. Sec. 293. Miscellaneous conforming amendments. Sec. 294. Removal of obsolete administrative provisions. Sec. 295. Proposed conforming amendments. Sec. 296. Termination of authority.

TITLE III—MISCELLANEOUS

Sec. 301. Poultry labeling. Sec. 302. First Amendment rights of employees of the United States Department

of Agriculture. Sec. 303. Adjusted cost of thrifty food plan. Sec. 304. Office of Risk Assessment and Cost-Benefit Analysis. Sec. 305. Fair and equitable treatment of socially disadvantaged producers. Sec. 306. Aviation inspections.

TITLE I—FEDERAL CROP INSURANCE

REFORM

SEC. 101. SHORT TITLE; REFERENCES.

(a) SHORT TITLE.—This title may be cited as the ‘‘Federal

Crop Insurance Reform Act of 1994’’.
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(b) REFERENCES TO FEDERAL CROP INSURANCE ACT.—Except

as otherwise expressly provided, whenever in this title an amendment or repeal is expressed in terms of an amendment to, or

repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Federal

Crop Insurance Act (7 U.S.C. 1501 et seq.).

SEC. 102. DEFINITIONS.

(a) IN GENERAL.—Section 502 (7 U.S.C. 1502) is amended—

(1) by striking the section heading and ‘‘SEC. 502.’’ and

inserting the following:

‘‘SEC. 502. PURPOSE AND DEFINITIONS.

‘‘(a) PURPOSE.—’’; and

(2) by adding at the end the following new subsection: ‘‘(b) DEFINITIONS.—As used in this title:

‘‘(1) ADDITIONAL COVERAGE.—The term ‘additional coverage’ means a plan of crop insurance coverage providing a level

of coverage greater than the level available under catastrophic

risk protection. ‘‘(2) APPROVED INSURANCE PROVIDER.—The term ‘approved

insurance provider’ means a private insurance provider that

has been approved by the Corporation to provide insurance

coverage to producers participating in the Federal crop insurance program established under this title. ‘‘(3) BOARD.—The term ‘Board’ means the Board of Directors of the Corporation established under section 505(a). ‘‘(4) CORPORATION.—The term ‘Corporation’ means the Federal Crop Insurance Corporation established under section 503. ‘‘(5) DEPARTMENT.—The term ‘Department’ means the

United States Department of Agriculture. ‘‘(6) LOSS RATIO.—The term ‘loss ratio’ means the ratio

of all sums paid by the Corporation as indemnities under any

eligible crop insurance policy to that portion of the premium

designated for anticipated losses and a reasonable reserve,

other than that portion of the premium designated for operating

and administrative expenses. ‘‘(7) SECRETARY.—The term ‘Secretary’ means the Secretary of Agriculture. ‘‘(8) TRANSITIONAL YIELD.—The term ‘transitional yield’ means the maximum average production per acre or equivalent

measure that is assigned to acreage for a crop year by the

Corporation in accordance with the regulations of the Corporation whenever the producer fails— ‘‘(A) to certify that acceptable documentation of produc- tion and acreage for the crop year is in the possession

of the producer; or ‘‘(B) to present the acceptable documentation on the

demand of the Corporation or an insurance company

reinsured by the Corporation.’’. (b) CONFORMING AMENDMENTS.— (1) The first sentence of section 503 (7 U.S.C. 1503) is

amended by striking ‘‘(herein called the Corporation)’’. (2) Section 504 (7 U.S.C. 1504) is amended—

(A) in subsection (a), by striking ‘‘Board of Directors

of the Corporation’’ and inserting ‘‘Board’’; and (B) in subsection (d), by striking ‘‘Federal Crop Insurance Corporation’’ and inserting ‘‘Corporation’’.
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(3) The first sentence of section 505(a) (7 U.S.C. 1505(a))

is amended by striking ‘‘(hereinafter called the ‘Board’)’’. (4) Except in section 502, the Act is amended— (A) by striking ‘‘Board of Directors’’ each place it appears and inserting ‘‘Board’’; (B) by striking ‘‘Department of Agriculture’’ each place it appears and inserting ‘‘Department’’; and (C) by striking ‘‘Secretary of Agriculture’’ each place it appears and inserting ‘‘Secretary’’.

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

The second sentence of section 505(a) (7 U.S.C. 1505(a)) is

amended—

(1) by striking ‘‘or Assistant Secretary’’ the first place it appears; and (2) by striking ‘‘the Under Secretary or Assistant Secretary of Agriculture responsible for the farm credit programs of the

Department of Agriculture’’ and inserting ‘‘one additional Under

Secretary of Agriculture (as designated by the Secretary of

Agriculture)’’.

SEC. 104. GENERAL POWERS.

Section 506 (7 U.S.C. 1506) is amended—

(1) by redesignating subsections (j) through (n) as sub- sections (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
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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

1.075.

‘‘(3) NONSTANDARD CLASSIFICATION SYSTEM.—To the extent

that the Corporation uses the nonstandard classification system, the Corporation shall apply the system to all insured

producers in a fair and consistent manner.’’; and

(6) by adding at the end the following new subsections:

‘‘(p) REGULATIONS.—The Secretary and the Corporation are each

authorized to issue such regulations as are necessary to carry

out this title.

‘‘(q) PROGRAM COMPLIANCE.—

‘‘(1) TIMELINESS.—The Corporation shall work actively with

approved insurance providers to address program compliance

and integrity issues as the issues develop.

‘‘(2) NOTIFICATION OF COMPLIANCE PROBLEMS.—The Corporation shall notify in writing any approved insurance provider

with whom the Corporation has an agreement under this title

of any error, omission, or failure to follow Corporation regulations or procedures for which the approved insurance provider

may be responsible and which may result in a debt owed

the Corporation. The notice shall be given within 3 years of

the end of the insurance period during which the error, omission, or failure is alleged to have occurred, except that this

time limit shall not apply with respect to errors, omissions,

or procedural violations that are willful or intentional. The

failure to timely provide the notice required under this subsection shall relieve the approved insurance provider from the

debt owed the Corporation.

‘‘(r) PURCHASE OF AMERICAN-MADE EQUIPMENT AND

PRODUCTS.—

‘‘(1) SENSE OF CONGRESS.—It is the sense of Congress that,

to the greatest extent practicable, all equipment and products

purchased by the Corporation using funds made available to

the Corporation should be American-made.

‘‘(2) NOTICE REQUIREMENT.—In providing financial assistance to, or entering into any contract with, any entity for

the purchase of equipment and products to carry out this title,

the Corporation, to the greatest extent practicable, shall provide

to the entity a notice describing the statement made in

paragraph (1).’’.

SEC. 105. PERSONNEL.

Section 507 (7 U.S.C. 1507) is amended—
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(1) in subsection (a), by striking ‘‘, and county crop insurance committeemen’’;

(2) in subsection (d), by striking ‘‘of this Act,’’ and all that follows through ‘‘agency’’; and (3) by adding at the end the following new subsection: ‘‘(g)(1) The Corporation shall establish a management-level posi- tion to be known as the Specialty Crops Coordinator. ‘‘(2) The Specialty Crops Coordinator shall have primary respon- sibility for addressing the needs of specialty crop producers, and

for providing information and advice, in connection with the activities of the Corporation to improve and expand the insurance program for specialty crops. In carrying out this paragraph, the

Specialty Crops Coordinator shall act as the liaison of the Corporation with representatives of specialty crop producers and assist

the Corporation with the knowledge, expertise, and familiarity of

the producers with risk management and production issues pertaining to specialty crops. ‘‘(3) The Specialty Crops Coordinator shall use information collected from Corporation field office directors in States in which

specialty crops have a significant economic effect and from other

sources, including the extension service and colleges and

universities.’’.

SEC. 106. CROP INSURANCE.

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

‘‘SEC. 508. CROP INSURANCE.

‘‘(a) AUTHORITY TO OFFER INSURANCE.— ‘‘(1) IN GENERAL.—If sufficient actuarial data are available

(as determined by the Corporation), the Corporation may

insure, or provide reinsurance for insurers of, producers of

agricultural commodities grown in the United States under

1 or more plans of insurance determined by the Corporation

to be adapted to the agricultural commodity concerned. To

qualify for coverage under a plan of insurance, the losses of

the insured commodity must be due to drought, flood, or other

natural disaster (as determined by the Secretary). ‘‘(2) PERIOD.—Except in the cases of tobacco and potatoes,

insurance shall not extend beyond the period during which

the insured commodity is in the field. As used in the preceding

sentence, in the case of an aquacultural species, the term

‘field’ means the environment in which the commodity is produced.

‘‘(3) EXCLUSIONS.—Insurance provided under this subsection shall not cover losses due to—

‘‘(A) the neglect or malfeasance of the producer;

‘‘(B) the failure of the producer to reseed to the same

crop in such areas and under such circumstances as it

is customary to reseed; or ‘‘(C) the failure of the producer to follow good farming practices (as determined by the Secretary).

‘‘(4) EXPANSION TO OTHER AREAS OR SINGLE PRODUCERS.—

‘‘(A) AREA EXPANSION.—The Corporation may offer

plans of insurance or reinsurance for production of agricultural commodities in the Commonwealth of Puerto Rico,

the Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, the Republic of

the Marshall Islands, the Federated States of Micronesia,
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and the Republic of Palau in the same manner as provided

in this section for production of agricultural commodities

in the United States.

‘‘(B) PRODUCER EXPANSION.—In an area in the United

States or specified in subparagraph (A) where crop insurance is not available for a particular agricultural commodity, the Corporation may offer to enter into a written

agreement with an individual producer operating in the

area for insurance coverage under this title if the producer

has actuarially sound data relating to the production by

the producer of the commodity and the data is acceptable

to the Corporation.

‘‘(5) DISSEMINATION OF CROP INSURANCE INFORMATION.—

The Corporation shall make available to producers through

local offices of the Department—

‘‘(A) current and complete information on all aspects

of Federal crop insurance; and

‘‘(B) a listing of insurance agents and companies offering to sell crop insurance in the area of the producers.

‘‘(6) ADDITION OF NEW AND SPECIALTY CROPS.—

‘‘(A) DATA COLLECTION.—Not later than 180 days after

the date of enactment of this paragraph, the Secretary

shall issue guidelines for publication in the Federal Register for data collection to assist the Corporation in formulating crop insurance policies for new and specialty crops.

‘‘(B) ADDITION OF NEW CROPS.—Not later than 1 year

after the date of enactment of this paragraph, and annually

thereafter, the Corporation shall report to Congress on

the progress and expected timetable for expanding crop

insurance coverage under this title to new and specialty

crops.

‘‘(C) ADDITION OF DIRECT SALE PERISHABLE CROPS.— Not later than 1 year after the date of enactment of this

paragraph, the Corporation shall report to Congress on

the feasibility of offering a crop insurance program designed

to meet the needs of specialized producers of vegetables

and other perishable crops who market through direct

marketing channels. ‘‘(b) CATASTROPHIC RISK PROTECTION.— ‘‘(1) IN GENERAL.—The Corporation shall offer a catastrophic risk protection plan to indemnify producers for crop

loss due to loss of yield or prevented planting, if provided

by the Corporation, when the producer is unable, because of

drought, flood, or other natural disaster (as determined by

the Secretary), to plant other crops for harvest on the acreage

for the crop year.

‘‘(2) AMOUNT OF COVERAGE.—

‘‘(A) IN GENERAL.—Subject to subparagraph (B)—

‘‘(i) in the case of each of the 1995 through 1998

crop years, catastrophic risk protection shall offer a

producer coverage for a 50 percent loss in yield, on

an individual yield or area yield basis, indemnified

at 60 percent of the expected market price, or a comparable coverage (as determined by the Corporation);

and

‘‘(ii) in the case of each of the 1999 and subsequent

crop years, catastrophic risk protection shall offer a
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producer coverage for a 50 percent loss in yield, on

an individual yield or area yield basis, indemnified

at 55 percent of the expected market price, or a comparable coverage (as determined by the Corporation).

‘‘(B) REDUCTION IN ACTUAL PAYMENT.—The amount

paid to a producer on a claim under catastrophic risk

protection may reflect a reduction that is proportional to

the out-of-pocket expenses that are not incurred by the

producer as a result of not planting, growing, or harvesting

the crop for which the claim is made, as determined by

the Corporation.

‘‘(3) YIELD AND LOSS BASIS.—A producer shall have the

option of basing the catastrophic coverage of the producer on

an individual yield and loss basis or on an area yield and

loss basis, if both options are offered by the Corporation.

‘‘(4) SALE OF CATASTROPHIC RISK COVERAGE.—

‘‘(A) IN GENERAL.—Catastrophic risk coverage may be

offered by—

‘‘(i) approved insurance providers, if available in

an area; and

‘‘(ii) at the option of the Secretary that is based

on considerations of need, local offices of the

Department.

‘‘(B) NEED.—For purposes of considering need under

subparagraph (A)(ii), the Secretary may take into account

the most efficient and cost-effective use of resources, the

availability of personnel, fairness to local producers, the

needs and convenience of local producers, and the

availability of private insurance carriers.

‘‘(5) ADMINISTRATIVE FEE.— ‘‘(A) FEE REQUIRED.—Producers shall pay an administrative fee for catastrophic risk protection. The administrative fee for each producer shall be $50 per crop per county,

but not to exceed $200 per producer per county up to

a maximum of $600 per producer for all counties in which

a producer has insured crops. The administrative fee shall

be paid by the producer at the time the producer applies

for catastrophic risk protection.

‘‘(B) USE OF FEES.— ‘‘(i) FEES UP TO $100.— ‘‘(I) FEES COLLECTED BY USDA OFFICES.—Not

more than $100 of the administrative fees paid

by a producer for catastrophic risk coverage that

are collected by an office of the Department shall

be credited to the appropriations account providing

funds for the payment of operating and administrative expenses incurred for the delivery of catastrophic risk protection under this section. The

fees shall be collected in accordance with appropriation Acts and shall be available until expended

without fiscal year limitation for the payment of

the expenses.

‘‘(II) FEES COLLECTED BY APPROVED INSURANCE

PROVIDERS.—Not more than $100 of the administrative fees paid by a producer for catastrophic

risk coverage that are collected by an approved

insurance provider shall be retained by the pro-
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vider as payment for operating and administrative

expenses incurred for the delivery of catastrophic

risk protection.

‘‘(ii) FEES IN EXCESS OF $100.—Notwithstanding the

authority granted to the Secretary under the Federal

Crop Insurance Corporation account provisions of the

Agricultural, Rural Development, Food and Drug

Administration, and Related Agencies Appropriations

Act, 1995, all fees collected under this subsection in

excess of $100 per producer per county shall be deposited in the crop insurance fund established under

section 516(c), to be available for the programs and

activities of the Corporation.

‘‘(C) WAIVER OF FEE.—The Corporation shall waive the

administrative fee for limited resource farmers, as defined

by the Corporation.

‘‘(6) PARTICIPATION REQUIREMENT.—A producer may obtain

catastrophic risk coverage for a crop of the producer on land

in the county only if the producer obtains the coverage for

the crop on all insurable land of the producer in the county.

‘‘(7) ELIGIBILITY FOR DEPARTMENT PROGRAMS.—

‘‘(A) IN GENERAL.—To be eligible for any price support

or production adjustment program, the conservation

reserve program, or any benefit described in section 371

of the Consolidated Farm and Rural Development Act,

the producer must obtain at least the catastrophic level

of insurance for each crop of economic significance grown

on each farm in the county in which the producer has

an interest, if insurance is available in the county for

the crop.

‘‘(B) DEFINITION OF CROP OF ECONOMIC SIGNIFICANCE.—

As used in this paragraph, the term ‘crop of economic

significance’ means a crop that has contributed, or is

expected to contribute, 10 percent or more of the total

expected value of all crops grown by the producer.

‘‘(8) LIMITATION DUE TO RISK.—The Corporation may limit

catastrophic risk coverage in any county or area, or on any

farm, on the basis of the insurance risk concerned.

‘‘(9) TRANSITIONAL COVERAGE FOR 1995 CROPS.—Effective

only for a 1995 crop planted or for which insurance attached

prior to January 1, 1995, the Corporation shall allow producers

of the crops until not later than the end of the 180-day period

beginning on the date of enactment of the Federal Crop Insurance Reform Act of 1994 to obtain catastrophic risk protection

for the crop. On enactment of such Act, a producer who made

timely purchases of a crop insurance policy before the date

of enactment of such Act, under the provisions of this title

then in effect, shall be eligible for the same benefits to which

a producer would be entitled under comparable additional coverage under subsection (c).

‘‘(10) SIMPLIFICATION.—

‘‘(A) CATASTROPHIC RISK PROTECTION PLANS.—In developing and carrying out the policies and procedures for

a catastrophic risk protection plan under this title, the

Corporation shall, to the maximum extent practicable,

minimize the paperwork required and the complexity and
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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.

‘‘(c) GENERAL COVERAGE LEVELS.—

‘‘(1) ADDITIONAL COVERAGE GENERALLY.—

‘‘(A) IN GENERAL.—The Corporation shall offer to

producers of agricultural commodities grown in the United

States plans of crop insurance that provide additional

coverage.

‘‘(B) PURCHASE.—To be eligible for additional coverage,

a producer must apply to an approved insurance provider

for purchase of additional coverage if the coverage is available from an approved insurance provider. If additional

coverage is unavailable privately, the Corporation may offer

additional coverage plans of insurance directly to producers.

‘‘(2) TRANSFER OF RELEVANT INFORMATION.—If a producer

has already applied for catastrophic risk protection at the local

office of the Department and elects to purchase additional

coverage, the relevant information for the crop of the producer

shall be transferred to the approved insurance provider servicing the additional coverage crop policy.

‘‘(3) YIELD AND LOSS BASIS.—A producer shall have the

option of purchasing additional coverage based on an individual

yield and loss basis or on an area yield and loss basis, if

both options are offered by the Corporation.

‘‘(4) LEVEL OF COVERAGE.—The level of coverage shall be

dollar denominated and may be purchased at any level not

to exceed 85 percent of the individual yield or 95 percent

of the area yield (as determined by the Corporation). Not later

than the beginning of the 1996 crop year, the Corporation

shall provide producers with information on catastrophic risk

and additional coverage in terms of dollar coverage (within

the allowable limits of coverage provided in this paragraph).

‘‘(5) PRICE LEVEL.—The Corporation shall establish a price

level for each commodity on which insurance is offered that—

‘‘(A) shall not be less than the projected market price

for the commodity (as determined by the Corporation);

or

‘‘(B) at the discretion of the Corporation, may be based

on the actual market price at the time of harvest (as

determined by the Corporation).

‘‘(6) PRICE ELECTIONS.—

‘‘(A) IN GENERAL.—Subject to subparagraph (B), insurance coverage shall be made available to a producer on

the basis of any price election that equals or is less than

the price election established by the Corporation. The coverage shall be quoted in terms of dollars per acre.
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‘‘(B) MINIMUM PRICE ELECTIONS.—The Corporation may

establish minimum price elections below which levels of

insurance shall not be offered.

‘‘(C) WHEAT CLASSES AND MALTING BARLEY.—The Corporation shall, as the Corporation determines practicable,

offer producers different price elections for classes of wheat

and malting barley (including contract prices in the case

of malting barley), in addition to the standard price election, that reflect different market prices, as determined

by the Corporation. The Corporation shall, as the Corporation determines practicable, offer additional coverage for

each class determined under this subparagraph and charge

a premium for each class that is actuarially sound.

‘‘(7) FIRE AND HAIL COVERAGE.—For levels of additional

coverage equal to 65 percent or more of the recorded or

appraised average yield indemnified at 100 percent of the

expected market price, or an equivalent coverage, a producer

may elect to delete from the additional coverage any coverage

against damage caused by fire and hail if the producer obtains

an equivalent or greater dollar amount of coverage for damage

caused by fire and hail from an approved insurance provider.

On written notice of the election to the company issuing the

policy providing additional coverage and submission of evidence

of substitute coverage on the commodity insured, the premium

of the producer shall be reduced by an amount determined

by the Corporation to be actuarially appropriate, taking into

account the actuarial value of the remaining coverage provided

by the Corporation. In no event shall the producer be given

credit for an amount of premium determined to be greater

than the actuarial value of the protection against losses caused

by fire and hail that is included in the additional coverage

for the crop.

‘‘(8) STATE PREMIUM SUBSIDIES.—The Corporation may

enter into an agreement with any State or agency of a State

under which the State or agency may pay to the approved

insurance provider an additional premium subsidy to further

reduce the portion of the premium paid by producers in the

State.

‘‘(9) LIMITATIONS ON ADDITIONAL COVERAGE.—The Board

may limit the availability of additional coverage under this

subsection in any county or area, or on any farm, on the

basis of the insurance risk involved. The Board shall not offer

additional coverage equal to less than 50 percent of the recorded

or appraised average yield indemnified at 100 percent of the

expected market price, or an equivalent coverage.

‘‘(10) ADMINISTRATIVE FEE.—

‘‘(A) FEE REQUIRED.—Except as otherwise provided in

this paragraph, if a producer elects to purchase additional

coverage for a crop at a level that is less than 65 percent

of the recorded or appraised average yield indemnified

at 100 percent of the expected market price, or an equivalent coverage, the producer shall pay an administrative

fee for the additional coverage. Subsection (b)(5) shall apply

in determining the amount and use of the administrative

fee or in determining whether to waive the administrative

fee.
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‘‘(B) EXCEPTION.—If a producer elects to purchase additional coverage for a crop equal to 65 percent or more

of the recorded or appraised average yield indemnified

at 100 percent of the expected market price, or an equivalent coverage, the producer shall not be subject to the

administrative fee required by this paragraph or subsection

(b)(5). If the producer has already paid the administrative

fee for a lower level of coverage for the crop, the administrative fee shall be refunded to the producer unless the refund

would reduce to less than $200 the total amount of the

administrative fees paid by the producer for 2 or more

crops in the same county for which a lower level of coverage

is obtained.

‘‘(C) ADDITIONAL FEE.—If a producer elects to purchase

additional coverage for a crop equal to or exceeding 65

percent of the recorded or appraised average yield and

100 percent of the expected market price or an equivalent

coverage, the producer shall pay an administrative fee of

$10 for the coverage. If a producer has already paid an

administrative fee for lesser coverage for the crop, the

fee for lesser coverage shall be refunded to the producer

unless the producer has paid the maximum fee for lesser

coverage and refund of the fee will not reduce the amount

to be paid below the maximum amount.

‘‘(D) DEPOSIT OF FEES.—Notwithstanding the authority

granted to the Secretary under the Federal Crop Insurance

Corporation account provisions of the Agricultural, Rural

Development, Food and Drug Administration, and Related

Agencies Appropriations Act, 1995, administrative fees collected under subparagraph (B) in excess of $100 per producer per county and under subparagraph (C) shall be

deposited in the insurance fund established under section

516(c) to be available for the programs and activities of

the Corporation.

‘‘(d) PREMIUMS.—

‘‘(1) PREMIUMS REQUIRED.—The Corporation shall fix adequate premiums for all the plans of insurance of the Corporation

at such rates as the Board determines are actuarially sufficient

to attain an expected loss ratio of not greater than 1.1 through

September 30, 1998, and not greater than 1.075 after October 1, 1998.

‘‘(2) PREMIUM AMOUNTS.—The premium amounts for catastrophic risk protection under subsection (b) and additional

coverage under subsection (c) shall be fixed as follows:

‘‘(A) In the case of catastrophic risk protection, the

amount of the premium shall be sufficient to cover anticipated losses and a reasonable reserve.

‘‘(B) In the case of additional coverage below 65 percent

of the recorded or appraised average yield indemnified

at 100 percent of the expected market price, or an equivalent coverage, but greater than 50 percent of the recorded

or appraised average yield indemnified at 100 percent of

the expected market price, or an equivalent coverage, the

amount of the premium shall—

‘‘(i) be sufficient to cover anticipated losses and

a reasonable reserve; and
H. R. 4217—13

‘‘(ii) include an amount for operating and administrative expenses, as determined by the Corporation.

‘‘(C) In the case of additional coverage equal to or

greater than 65 percent of the recorded or appraised average yield indemnified at 100 percent of the expected market

price, or an equivalent coverage, the amount of the premium shall—

‘‘(i) be sufficient to cover anticipated losses and

a reasonable reserve; and

‘‘(ii) include an amount for operating and administrative expenses, as determined by the Corporation,

on an industry-wide basis as a percentage of the

amount of the premium used to define loss ratio.

‘‘(e) PAYMENT OF PORTION OF PREMIUM BY CORPORATION.—

‘‘(1) IN GENERAL.—For the purpose of encouraging the

broadest possible participation of producers in the catastrophic

risk protection provided under subsection (b) and the additional

coverage provided under subsection (c), the Corporation shall

pay a part of the premium in the amounts provided in accordance with this subsection.

‘‘(2) AMOUNT OF PAYMENT.—The amount of the premium

to be paid by the Corporation shall be as follows:

‘‘(A) In the case of catastrophic risk protection, the

amount shall be equivalent to the premium established

for catastrophic risk protection under subsection (d)(2)(A).

‘‘(B) In the case of coverage below 65 percent of the

recorded or appraised average yield indemnified at 100

percent of the expected market price, or an equivalent

coverage, but greater than 50 percent of the recorded or

appraised average yield indemnified at 100 percent of the

expected market price, or an equivalent coverage, the

amount shall be equivalent to the amount of premium

established for catastrophic risk protection coverage and

the amount of operating and administrative expenses established under subsection (d)(2)(B).

‘‘(C) In the case of coverage equal to or greater than

65 percent of the recorded or appraised average yield

indemnified at 100 percent of the expected market price,

or an equivalent coverage, on an individual or area basis,

the amount shall be equivalent to an amount equal to

the premium established for 50 percent loss in yield indemnified at 75 percent of the expected market price and

the amount of operating and administrative expenses established under subsection (d)(2)(C).

‘‘(3) PREMIUM REDUCTION.—If an approved insurance provider determines that the provider may provide insurance more

efficiently than the expense reimbursement amount established

by the Corporation, the approved insurance provider may

reduce, subject to the approval of the Corporation, the premium

charged the insured by an amount corresponding to the efficiency. The approved insurance provider shall apply to the

Corporation for authority to reduce the premium before making

such a reduction, and the reduction shall be subject to the

rules, limitations, and procedures established by the

Corporation.

‘‘(4) INDIVIDUAL AND AREA CROP INSURANCE COVERAGE.—

The Corporation shall allow approved insurance providers to
H. R. 4217—14

offer a plan of insurance to producers that combines both

individual yield coverage and area yield coverage at a premium

rate determined by the provider under the following conditions:

‘‘(A) The individual yield coverage shall be equal to

or greater than catastrophic risk protection as described

in subsection (b).

‘‘(B) The combined policy shall include area yield coverage that is offered by the Corporation or similar area

coverage, as determined by the Corporation.

‘‘(C) The Corporation shall provide reinsurance on the

area yield portion of the combined policy at the request

of the provider, except that the provider shall agree to

pay to the producer any portion of the area yield and

loss indemnity payment received from the Corporation or

a commercial reinsurer that exceeds the individual indemnity payment made by the provider to the producer.

‘‘(D) The Corporation shall pay a part of the premium

equivalent to—

‘‘(i) the amount authorized under paragraph (2)

(except provisions regarding operating and administrative expenses); and

‘‘(ii) the amount of operating and administrative

expenses authorized by the Corporation for the area

yield coverage portion of the combined policy.

‘‘(E) The provider shall provide all underwriting services for the combined policy, including the determination

of individual yield coverage premium rates, the terms and

conditions of the policy, and the acceptance and classification of applicants into risk categories, subject to subparagraph (F). ‘‘(F) The Corporation shall approve the combined policy

unless the Corporation determines that the policy is not

actuarially sound or that the interests of producers are

not adequately protected. ‘‘(f) ELIGIBILITY.— ‘‘(1) IN GENERAL.—To participate in catastrophic risk

protection coverage under this section, a producer shall submit

an application at the local office of the Department or to an

approved insurance provider.

‘‘(2) SALES CLOSING DATE.—For coverage under this title,

each producer shall purchase crop insurance on or before the

sales closing date for the crop by providing the required

information and executing the required documents. Subject to

the goal of ensuring actuarial soundness for the crop insurance

program, the sales closing date shall be established by the

Corporation to maximize convenience to producers in obtaining

benefits under price and production adjustment programs of

the Department. Beginning with the 1995 crop year, the Corporation shall establish, for an insurance policy for each insurable crop that is planted in the spring, a sales closing date

that is 30 days earlier than the corresponding sales closing

date that was established for the 1994 crop year.

‘‘(3) RECORDS AND REPORTING.—To obtain catastrophic risk

protection under subsection (b) or additional coverage under

subsection (c), a producer shall—

‘‘(A) provide, to the extent required by the Corporation,

records acceptable to the Corporation of historical acreage
H. R. 4217—15

and production of the crops for which the insurance is

sought or accept a yield determined by the Corporation;

and

‘‘(B) report acreage planted and prevented from planting by the designated acreage reporting date for the crop

and location as established by the Corporation.

‘‘(g) YIELD DETERMINATIONS.—

‘‘(1) IN GENERAL.—Subject to paragraph (2), the Corporation

shall establish crop insurance underwriting rules that ensure

that yield coverage, as specified in this subsection, is provided

to eligible producers obtaining catastrophic risk protection

under subsection (b) or additional coverage under subsection

(c).

‘‘(2) YIELD COVERAGE PLANS.—

‘‘(A) ACTUAL PRODUCTION HISTORY.—Subject to

subparagraph (B), the yield for a crop shall be based on

the actual production history for the crop, if the crop was

produced on the farm without penalty during each of the

4 crop years immediately preceding the crop year for which

actual production history is being established, building up

to a production data base for each of the 10 consecutive

crop years preceding the crop year for which actual production history is being established.

‘‘(B) ASSIGNED YIELD.—If the producer does not provide

satisfactory evidence of the yield of a commodity under

subparagraph (A), the producer shall be assigned a yield

that is not less than 65 percent of the transitional yield

of the producer (adjusted to reflect actual production

reflected in the records acceptable to the Corporation for

continuous years), as specified in regulations issued by

the Corporation based on production history requirements. ‘‘(C) AREA YIELD.—The Corporation may offer a crop

insurance plan based on an area yield that allows an

insured producer to qualify for an indemnity if a loss has

occurred in an area (as specified by the Corporation) in

which the farm of the producer is located. Under an area

yield plan, an insured producer shall be allowed to select

the level of area production at which an indemnity will

be paid consistent with such terms and conditions as are

established by the Corporation. ‘‘(D) COMMODITY-BY-COMMODITY BASIS.—A producer

may choose between individual yield or area yield coverage

or combined coverage (as provided in subsection (e)(4)),

if available, on a commodity-by-commodity basis.

‘‘(3) TRANSITIONAL YIELDS FOR PRODUCERS OF FEED OR

FORAGE.—

‘‘(A) IN GENERAL.—If a producer does not provide satisfactory evidence of a yield under paragraph (2)(A), the

producer shall be assigned a yield that is at least 80

percent of the transitional yield established by the Corporation (adjusted to reflect the actual production history of

the producer) if the Secretary determines that—

‘‘(i) the producer grows feed or forage primarily

for on-farm use in a livestock, dairy, or poultry operation; and

‘‘(ii) over 50 percent of the net farm income of

the producer is derived from the operation.
H. R. 4217—16

‘‘(B) YIELD CALCULATION.—The Corporation shall—

‘‘(i) for the first year of participation of a producer,

provide the assigned yield under this paragraph to

the producer of feed or forage; and

‘‘(ii) for the second year of participation of the

producer, apply the actual production history or

assigned yield requirement, as provided in this

subsection.

‘‘(C) TERMINATION OF AUTHORITY.—The authority provided by this paragraph shall terminate on the date that

is 3 years after the effective date of this paragraph.

‘‘(h) SUBMISSION OF POLICIES AND MATERIALS TO BOARD.—

‘‘(1) IN GENERAL.—In addition to any standard forms or

policies that the Board may require be made available to

producers under subsection (c), a person may prepare for

submission or propose to the Board—

‘‘(A) other crop insurance policies and provisions of

policies; and

‘‘(B) rates of premiums for multiple peril crop insurance

pertaining to wheat, soybeans, field corn, and any other

crops determined by the Secretary.

‘‘(2) SUBMISSION OF POLICIES.—A policy or other material

submitted to the Board under this subsection may be prepared

without regard to the limitations contained in this title, including the requirements concerning the levels of coverage and

rates and the requirement that a price level for each commodity

insured must equal the expected market price for the commodity as established by the Board. In the case of such a policy,

the payment by the Corporation of a portion of the premium

of the policy may not exceed the amount that would otherwise

be authorized under subsection (e).

‘‘(3) REVIEW AND APPROVAL BY THE BOARD.—A policy or

other material submitted to the Board under this subsection

shall be reviewed by the Board and, if the Board finds that

the interests of producers are adequately protected and that

any premiums charged to the producers are actuarially appropriate, shall be approved by the Board for reinsurance and

for sale to producers as an additional choice at actuarially

appropriate rates and under appropriate terms and conditions.

The Corporation may enter into more than 1 reinsurance agreement with the approved insurance provider simultaneously to

facilitate the offering of the new policies.

‘‘(4) GUIDELINES FOR SUBMISSION AND REVIEW.—The Corporation shall issue regulations to establish guidelines for the

submission, and Board review, of policies or other material

submitted to the Board under this subsection. At a minimum,

the guidelines shall ensure the following:

‘‘(A) A proposal submitted to the Board under this

subsection shall be considered as confidential commercial

or financial information for purposes of section 552(b)(4)

of title 5, United States Code, until approved by the Board.

A proposal disapproved by the Board shall remain confidential commercial or financial information.

‘‘(B) The Board shall provide an applicant with the

opportunity to present the proposal to the Board in person

if the applicant so desires.
H. R. 4217—17

‘‘(C) The Board shall provide an applicant with notification of intent to disapprove a proposal not later than 30

days prior to making the disapproval. An applicant that

receives the notification may modify the application of the

applicant. Any modification shall be considered an original

application for purposes of this paragraph.

‘‘(D) Specific guidelines shall prescribe the timing of

submission of proposals under this subsection and timely

consideration by the Board so that any approved proposal

may be made available to all persons reinsured by the

Corporation in a manner permitting the persons to participate, if the persons so desire, in offering such a proposal

in the first crop year in which the proposal is approved

by the Board for reinsurance, premium subsidy, or other

support offered by this title.

‘‘(5) REQUIRED PUBLICATION.—Any policy, provision of a

policy, or rate approved under this subsection shall be published

as a notice in the Federal Register and made available to

all persons contracting with or reinsured by the Corporation

under the terms and conditions of the contract between the

Corporation and the person originally submitting the policy

or other material.

‘‘(6) PILOT COST OF PRODUCTION RISK PROTECTION PLAN.—

‘‘(A) IN GENERAL.—The Corporation shall offer, to the

extent practicable, a cost of production risk protection plan

of insurance that indemnifies producers (including new

producers) for insurable losses as provided in this paragraph. ‘‘(B) PILOT BASIS.—The cost of production risk protection plan shall—

‘‘(i) be established as a pilot project for each of

the 1996 and 1997 crop years; and ‘‘(ii) be carried out in a number of counties that

is determined by the Corporation to be adequate to

provide a comprehensive evaluation of the feasibility,

effectiveness, and demand among producers for the

plan.

‘‘(C) INSURABLE LOSS.—An insurable loss shall be

incurred by a producer if the gross income of the producer

(as determined by the Corporation) is less than an amount

determined by the Corporation, as a result of a reduction

in yield or price resulting from an insured cause. ‘‘(D) DEFINITION OF NEW PRODUCER.—As used in this

paragraph, the term ‘new producer’ means a person that

has not been actively engaged in farming for a share of

the production of the insured crop for more than 2 crop

years, as determined by the Secretary.

‘‘(7) ADDITIONAL PREVENTED PLANTING POLICY COVERAGE.—

‘‘(A) IN GENERAL.—Beginning with the 1995 crop year,

the Corporation shall offer to producers additional prevented planting coverage that insures producers against

losses in accordance with this paragraph.

‘‘(B) APPROVED INSURANCE PROVIDERS.—Additional prevented planting coverage shall be offered by the Corporation through approved insurance providers.

‘‘(C) TIMING OF LOSS.—A crop loss shall be covered

by the additional prevented planting coverage if—
H. R. 4217—18

‘‘(i) crop insurance policies were obtained for—

‘‘(I) the crop year the loss was experienced;

and

‘‘(II) the crop year immediately preceding the

year of the prevented planting loss; and

‘‘(ii) the cause of the loss occurred—

‘‘(I) after the sales closing date for the crop

in the crop year immediately preceding the loss;

and

‘‘(II) before the sales closing date for the crop

in the year in which the loss is experienced.

‘‘(8) PILOT PROGRAM OF ASSIGNED YIELDS FOR NEW

PRODUCERS.—

‘‘(A) PROGRAM REQUIRED.—For each of the 1995 and

1996 crop years, the Corporation shall carry out a pilot

program to assign to eligible new producers higher assigned

yields than would otherwise be assigned to the producers

under subsection (g). The Corporation shall include in the

pilot program 30 counties that are determined by the Corporation to be adequate to provide a comprehensive evaluation of the feasibility, effectiveness, and demand among

new producers for increased assigned yields.

‘‘(B) INCREASED ASSIGNED YIELDS.—In the case of an

eligible new producer participating in the pilot program,

the Corporation shall assign to the new producer a yield

that is equal to not less than 110 percent of the transitional

yield otherwise established by the Corporation.

‘‘(C) ELIGIBLE NEW PRODUCER.—The Secretary shall

establish a definition of new producer for purposes of determining eligibility to participate in the pilot program. ‘‘(i) ADOPTION OF RATES AND COVERAGES.—The Corporation

shall adopt, as soon as practicable, rates and coverages that will

improve the actuarial soundness of the insurance operations of

the Corporation for those crops that are determined to be insured

at rates that are not actuarially sound, except that no rate may

be increased by an amount of more than 20 percent over the

comparable rate of the preceding crop year. ‘‘(j) CLAIMS FOR LOSSES.— ‘‘(1) IN GENERAL.—Under rules prescribed by the Corporation, the Corporation may provide for adjustment and payment

of claims for losses. The rules prescribed by the Corporation

shall establish standards to ensure that all claims for losses

are adjusted, to the extent practicable, in a uniform and timely

manner.

‘‘(2) DENIAL OF CLAIMS.—

‘‘(A) IN GENERAL.—Subject to subparagraph (B), if a

claim for indemnity is denied by the Corporation or an

approved provider, an action on the claim may be brought

against the Corporation or Secretary only in the United

States district court for the district in which the insured

farm is located.

‘‘(B) STATUTE OF LIMITATIONS.—A suit on the claim

may be brought not later than 1 year after the date on

which final notice of denial of the claim is provided to

the claimant.

‘‘(3) INDEMNIFICATION.—The Corporation shall provide

approved insurance providers with indemnification, including
H. R. 4217—19

costs and reasonable attorney fees incurred by the approved

insurance provider, due to errors or omissions on the part

of the Corporation.

‘‘(k) REINSURANCE.—

‘‘(1) IN GENERAL.—Notwithstanding any other provision of

this title, the Corporation shall, to the maximum extent practicable, provide reinsurance to insurers approved by the Corporation that insure producers of any agricultural commodity

under 1 or more plans acceptable to the Corporation.

‘‘(2) TERMS AND CONDITIONS.—The reinsurance shall be

provided on such terms and conditions as the Board may determine to be consistent with subsections (b) and (c) and sound

reinsurance principles.

‘‘(3) SHARE OF RISK.—The reinsurance agreements of the

Corporation with the reinsured companies shall require the

reinsured companies to bear a sufficient share of any potential

loss under the agreement so as to ensure that the reinsured

company will sell and service policies of insurance in a sound

and prudent manner, taking into consideration the financial

condition of the reinsured companies and the availability of

private reinsurance.

‘‘(4) RATE.—The rate established by the Board to reimburse

approved insurance providers and agents for the administrative

and operating costs of the providers and agents shall not

exceed—

‘‘(A) for the 1997 reinsurance year, 29 percent of the

premium used to define loss ratio;

‘‘(B) for the 1998 reinsurance year, 28 percent of the

premium used to define loss ratio; and

‘‘(C) for the 1999 reinsurance year, 27.5 percent of

the premium used to define loss ratio.

‘‘(5) COST AND REGULATORY REDUCTION.—Consistent with

section 118 of the Federal Crop Insurance Reform Act of 1994,

and consistent with maintenance of program integrity, prevention of fraud and abuse, the need for program expansion, and

improvement of quality of service to customers, the Board shall

alter program procedures and administrative requirements in

order to reduce the administrative and operating costs of

approved insurance providers and agents in an amount that

corresponds to any reduction in the reimbursement rate

required under paragraph (4) during the 5-year period beginning on the date of enactment of this paragraph. ‘‘(6) AGENCY DISCRETION.—The determination of whether

the Corporation is achieving, or has achieved, corresponding

administrative cost savings shall not be subject to administrative review, and is wholly committed to agency discretion within

the meaning of section 701(a)(2) of title 5, United States Code.

‘‘(7) PLAN.—The Corporation shall submit to Congress a

plan outlining the measures that will be used to achieve the

reduction required under paragraph (5). If the Corporation

can identify additional cost reduction measures, the Corporation

shall describe the measures in the plan.

‘‘(l) OPTIONAL COVERAGES.—The Corporation may offer specific

risk protection programs, including protection against prevented

planting, wildlife depredation, tree damage and disease, and insect

infestation, under such terms and conditions as the Board may

determine, except that no program may be undertaken if insurance
H. R. 4217—20

for the specific risk involved is generally available from private

companies.

‘‘(m) RESEARCH.—

‘‘(1) IN GENERAL.—Except as provided in paragraph (2),

the Corporation may conduct research, surveys, pilot programs,

and investigations relating to crop insurance and agriculturerelated risks and losses including insurance on losses involving

reduced forage on rangeland caused by drought and by insect

infestation, livestock poisoning and disease, destruction of bees

due to the use of pesticides, and other unique special risks

related to fruits, nuts, vegetables, aquacultural species, forest

industry needs (including appreciation), and other agricultural

products as determined by the Board.

‘‘(2) EXCEPTION.—No action may be undertaken with

respect to a risk under paragraph (1) if insurance protection

against the risk is generally available from private companies.

‘‘(3) EVALUATION.—After the completion of any pilot program under this subsection, the Corporation shall evaluate

the pilot program and submit to the Committee on Agriculture

of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate, a report of

the operations of the pilot program, including the evaluation

by the Corporation of the pilot program and the recommendations of the Corporation with respect to implementing the program on a national basis.’’.

SEC. 107. CROP INSURANCE YIELD COVERAGE.

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

SEC. 108. PREEMPTION.

Section 511 (7 U.S.C. 1511) is amended by adding at the end

the following sentence: ‘‘A contract of insurance of the Corporation,

and a contract of insurance reinsured by the Corporation, shall

be exempt from taxation imposed by any State, municipality, or

local taxing authority.’’.

SEC. 109. ADVISORY COMMITTEE.

The Act is amended by inserting after section 514 (7 U.S.C. 1514) the following new section:

‘‘SEC. 515. ADVISORY COMMITTEE FOR FEDERAL CROP INSURANCE.

‘‘(a) ESTABLISHMENT.—The Secretary may establish within the

Department an advisory committee to be known as the ‘Advisory

Committee for Federal Crop Insurance’.

‘‘(b) PRIMARY RESPONSIBILITY.—The primary responsibility of

the Advisory Committee shall be to advise the Secretary on the

implementation of this title and on other issues related to crop

insurance, as determined by the Manager of the Corporation.

‘‘(c) MEMBERSHIP.—The Advisory Committee shall be composed

of the Manager of the Corporation, the Secretary (or a designee

of the Secretary), and not fewer than 12 members representing

organizations and agencies involved in the provision of crop insurance under this title. Not fewer than 3 of the members of the

Advisory Committee shall be representatives of the specialty crops

industry. The organizations or agencies represented by members

on the Advisory Committee may include insurance companies, insurance agents, farm producer organizations, experts on agronomic

practices, and banking and lending institutions.
H. R. 4217—21

‘‘(d) ADMINISTRATIVE PROVISIONS.— ‘‘(1) TERMS.—Members of the Advisory Committee (other than the Manager of the Corporation and the Secretary) shall

be appointed by the Secretary for a term of up to 2 years

from nominations made by the organizations and agencies specified in subsection (c). The terms of the members (other than

the Manager of the Corporation and the Secretary) shall be

staggered. ‘‘(2) CHAIRPERSON.—The Advisory Committee shall be chaired by the Manager of the Corporation. ‘‘(3) MEETINGS.—The Advisory Committee shall meet at least annually. The meetings of the Advisory Committee shall

be publicly announced in advance and shall be open to the

public. Appropriate records of the activities of the Advisory

Committee shall be kept and made available to the public

on request.

‘‘(e) REPORTS.—Not later than June 30 of each year, the Advisory Committee shall submit to the Secretary a report specifying the conclusions and recommendations of the Advisory Committee regarding— ‘‘(1) the progress toward implementation of this title;

‘‘(2) the actuarial soundness of the Federal crop insurance

program; ‘‘(3) the rate of producer participation in both catastrophic risk protection under section 508(b) and additional coverage

under section 508(c); and

‘‘(4) the progress toward improved crop insurance coverage for new and specialty crops.

‘‘(f) TERMINATION OF AUTHORITY.—The authority provided by this section shall terminate on September 30, 1998.’’.

SEC. 110. FUNDING.

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

‘‘SEC. 516. FUNDING.

‘‘(a) AUTHORIZATION OF APPROPRIATIONS.— ‘‘(1) DISCRETIONARY EXPENSES.—There are authorized to

be appropriated for each of fiscal years 1995 through 2001

such sums as are necessary to cover— ‘‘(A) the salaries and expenses of the Corporation; and

‘‘(B) the administrative and operating expenses of the Corporation for the sales commissions of agents.

‘‘(2) MANDATORY EXPENSES.—There are authorized to be

appropriated such sums as are necessary to cover— ‘‘(A) in the case of each of the 1995 through 1997 reinsurance years, the administrative and operating

expenses of the Corporation for the sales commissions of

agents, consistent with subsection (b)(1); ‘‘(B) premium subsidies, including the administrative

and operating expenses of an approved insurance provider

for the delivery of policies with additional coverage; and ‘‘(C) payments for noninsured assistance losses under

section 519.

‘‘(b) PAYMENT OF EXPENSES.—

‘‘(1) ADMINISTRATIVE AND OPERATING EXPENSES.—

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

(B), in the case of each of the 1995 through 1997 reinsurance years, the Corporation is authorized to pay from the
H. R. 4217—22

insurance fund established under subsection (c), the

administrative and operating expenses of an approved

insurance provider, including expenses covered by subsection (a)(1)(B).

‘‘(B) SALES COMMISSIONS FOR 1997 REINSURANCE YEAR.— In the case of the 1997 reinsurance year, the amount

of the payments from the insurance fund established under

subsection (c) for the expenses of the Corporation for the

sales commissions of agents may not exceed 8.5 percent

of the total amount of premiums paid for additional coverage for the 1997 reinsurance year.

‘‘(2) OTHER EXPENSES.—The Corporation is authorized to pay from the insurance fund established under subsection (c)— ‘‘(A) all other expenses of the Corporation (other than expenses covered by subsection (a)(1)), including all premium subsidies, noninsured assistance benefits, and

indemnities;

‘‘(B) subject to paragraph (1)(B), in the case of each of the 1995 through 1997 reinsurance years, all administrative and expense reimbursements due under a reinsurance

agreement with an approved insurance provider; and ‘‘(C) to the extent necessary, expenses incurred by the Corporation to carry out research and development. ‘‘(c) INSURANCE FUND.— ‘‘(1) IN GENERAL.—There is established an insurance fund,

for the deposit of premium income and amounts made available

under subsection (a)(2), to be available without fiscal year

limitation.

‘‘(2) COMMODITY CREDIT CORPORATION FUNDS.—If at any time the amounts in the insurance fund are insufficient to

enable the Corporation to carry out subsection (b), to the extent

the funds of the Commodity Credit Corporation are available— ‘‘(A) the Corporation may request the Secretary to use the funds of the Commodity Credit Corporation to carry

out subsection (b); and

‘‘(B) the Secretary may use the funds of the Commodity Credit Corporation to carry out subsection (b).’’.

SEC. 111. NONINSURED CROP DISASTER ASSISTANCE.

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

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

‘‘(a) ESTABLISHMENT OF PROGRAM.— ‘‘(1) ESTABLISHMENT.—In the case of an eligible crop described in paragraph (2), the Corporation shall establish a

noninsured crop disaster assistance program to provide coverage equivalent to the catastrophic risk protection otherwise

available under section 508(b).

‘‘(2) ELIGIBLE CROPS.—

‘‘(A) IN GENERAL.—As used in this section, the term

‘eligible crop’ means each commercial crop or other agricultural commodity (except livestock)—

‘‘(i) for which catastrophic risk protection under

section 508(b) is not available; and

‘‘(ii) that is produced for food or fiber.

‘‘(B) CROPS SPECIFICALLY INCLUDED.—The term ‘eligible

crop’ shall include floricultural, ornamental nursery, and

Christmas tree crops, turfgrass sod, and industrial crops.
H. R. 4217—23

‘‘(3) CAUSE OF LOSS.—To qualify for assistance under this

section, the losses of the noninsured commodity shall be due

to drought, flood, or other natural disaster, as determined by

the Secretary.

‘‘(b) APPLICATION FOR NONINSURED CROP DISASTER

ASSISTANCE.—

‘‘(1) TIMELY APPLICATION.—To be eligible for assistance

under this section, a producer shall submit an application for

noninsured crop disaster assistance at a local office of the

Department. The application shall be in such form, contain

such information, and be submitted at such time as the Corporation may require.

‘‘(2) RECORDS.—A producer shall annually provide records,

as required by the Corporation, of previous crop acreage, acreage yields, and production, or the producer shall accept a yield

under subsection (e)(3) determined by the Corporation.

‘‘(3) ACREAGE REPORTS.—A producer shall provide reports

on acreage planted or prevented from being planted, as required

by the Corporation, by the designated acreage reporting date

for the crop and location as established by the Corporation.

‘‘(c) LOSS REQUIREMENTS.—

‘‘(1) REQUIRED AREA LOSS.—A producer of an eligible crop

shall not receive noninsured crop disaster assistance unless

the average yield for that crop, or an equivalent measure in

the event yield data are not available, in an area falls below

65 percent of the expected area yield, as established by the

Corporation.

‘‘(2) PREVENTED PLANTING.—Subject to paragraph (1), the

Corporation shall make a prevented planting noninsured crop

disaster assistance payment if the producer is prevented from

planting more than 35 percent of the acreage intended for

the eligible crop because of drought, flood, or other natural

disaster, as determined by the Secretary.

‘‘(3) REDUCED YIELDS.—Subject to paragraph (1), the Corporation shall make a reduced yield noninsured crop disaster

assistance payment to a producer if the total quantity of the

eligible crop that the producer is able to harvest on any farm

is, because of drought, flood, or other natural disaster as determined by the Secretary, less than 50 percent of the expected

individual yield for the crop, as determined by the Corporation,

factored for the interest of the producer for the crop.

‘‘(d) PAYMENT.—The Corporation shall make available to a producer eligible for noninsured assistance under this section a

payment computed by multiplying—

‘‘(1) the quantity that is less than 50 percent of the established yield for the crop; by

‘‘(2)(A) in the case of each of the 1995 through 1998 crop

years, 60 percent of the average market price for the crop

(or any comparable coverage determined by the Corporation);

or

‘‘(B) in the case of each of the 1999 and subsequent crop

years, 55 percent of the average market price for the crop

(or any comparable coverage determined by the Corporation);

by

‘‘(3) a payment rate for the type of crop (as determined

by the Corporation) that—
H. R. 4217—24

‘‘(A) in the case of a crop that is produced with a

significant and variable harvesting expense, reflects the

decreasing cost incurred in the production cycle for the

crop that is—

‘‘(i) harvested;

‘‘(ii) planted but not harvested; and

‘‘(iii) prevented from being planted because of

drought, flood, or other natural disaster (as determined

by the Secretary); and

‘‘(B) in the case of a crop that is not produced with

a significant and variable harvesting expense, is determined by the Corporation.

‘‘(e) YIELD DETERMINATIONS.—

‘‘(1) ESTABLISHMENT.—The Corporation shall establish farm

yields for purposes of providing noninsured crop disaster assistance under this section.

‘‘(2) ACTUAL PRODUCTION HISTORY.—The Corporation shall

determine yield coverage using the actual production history

of the producer over a period of not less than the 4 previous

consecutive crop years and not more than 10 consecutive crop

years. Subject to paragraph (3), the yield for the year in which

noninsured crop disaster assistance is sought shall be equal

to the average of the actual production history of the producer

during the period considered.

‘‘(3) ASSIGNMENT OF YIELD.—If a producer does not submit

adequate documentation of production history to determine a

crop yield under paragraph (2), the Corporation shall assign

to the producer a yield equal to not less than 65 percent

of the transitional yield of the producer (adjusted to reflect

actual production reflected in the records acceptable to the

Corporation for continuous years), as specified in regulations

issued by the Corporation based on production history

requirements.

‘‘(4) PROHIBITION ON ASSIGNED YIELDS IN CERTAIN

COUNTIES.—

‘‘(A) IN GENERAL.— ‘‘(i) DOCUMENTATION.—If sufficient data are available to demonstrate that the acreage of a crop in

a county for the crop year has increased by more

than 100 percent over any year in the preceding 7

crop years or, if data are not available, if the acreage

of the crop in the county has increased significantly

from the previous crop years, a producer must provide

such detailed documentation of production costs, acres

planted, and yield for the crop year for which benefits

are being claimed as is required by the Corporation.

If the Corporation determines that the documentation

provided is not sufficient, the Corporation may require

documenting proof that the crop, had the crop been

harvested, could have been marketed at a reasonable

price.

‘‘(ii) PROHIBITION.—Except as provided in subparagraph (B), a producer who produces a crop on a farm

located in a county described in clause (i) may not

obtain an assigned yield.

‘‘(B) EXCEPTION.—A crop or a producer shall not be

subject to this subsection if—
H. R. 4217—25

‘‘(i) the planted acreage of the producer for the

crop has been inspected by a third party acceptable

to the Secretary; or

‘‘(ii)(I) the County Executive Director and the State

Executive Director recommend an exemption from the

requirement to the Deputy Administrator for State

and County Operations of the Agricultural Stabilization and Conservation Service; and

‘‘(II) the Deputy Administrator approves the

recommendation.

‘‘(5) LIMITATION ON RECEIPT OF SUBSEQUENT ASSIGNED

YIELD.—A producer who receives an assigned yield for the current year of a natural disaster because required production

records were not submitted to the local office of the Department

shall not be eligible for an assigned yield for the year of the

next natural disaster unless the required production records

of the previous 1 or more years (as applicable) are provided

to the local office.

‘‘(6) YIELD VARIATIONS DUE TO DIFFERENT FARMING PRACTICES.—The Corporation shall ensure that noninsured crop

disaster assistance accurately reflects significant yield variations due to different farming practices, such as between irrigated and nonirrigated acreage.

‘‘(f) CONTRACT PAYMENTS.—A producer who has received a

guaranteed payment for production, as opposed to delivery, of a

crop pursuant to a contract shall have the production of the producer adjusted upward by the amount of the production equal

to the amount of the contract payment received. ‘‘(g) PAYMENT OF LOSSES.—Payments for noninsured crop disaster assistance losses under this section shall be made from the

insurance fund established under section 516. The losses shall

not be included in calculating the premiums charged to producers

for insurance under section 508.

‘‘(h) EXCLUSIONS.—Noninsured crop disaster assistance under

this section shall not cover losses due to—

‘‘(1) the neglect or malfeasance of the producer;

‘‘(2) the failure of the producer to reseed to the same

crop in those areas and under such circumstances where it

is customary to reseed; or ‘‘(3) the failure of the producer to follow good farming

practices, as determined by the Corporation.’’.

SEC. 112. PAYMENT AND INCOME LIMITATIONS.

Section 519 (7 U.S.C. 1519) (as amended by section 111) is

further amended by adding at the end the following new subsection:

‘‘(h) PAYMENT AND INCOME LIMITATIONS.—

‘‘(1) DEFINITIONS.—As used in this subsection:

‘‘(A) PERSON.—The term ‘person’ has the meaning provided the term in regulations issued by the Secretary.

The regulations shall conform, to the extent practicable,

to the regulations defining the term ‘person’ issued under

section 1001 of the Food Security Act of 1985 (7 U.S.C.

1308).

‘‘(B) QUALIFYING GROSS REVENUES.—The term ‘qualifying gross revenues’ means—

‘‘(i) if a majority of the gross revenue of the person

is received from farming, ranching, and forestry oper-
H. R. 4217—26

ations, the gross revenue from the farming, ranching,

and forestry operations of the person; and

‘‘(ii) if less than a majority of the gross revenue

of the person is received from farming, ranching, and

forestry operations, the gross revenue of the person

from all sources.

‘‘(2) PAYMENT LIMITATION.—The total amount of payments

that a person shall be entitled to receive annually under this

title may not exceed $100,000.

‘‘(3) LIMITATION ON MULTIPLE BENEFITS FOR SAME LOSS.—

If a producer who is eligible to receive benefits under catastrophic risk protection under section 508(b) or noninsured

crop disaster assistance under this section is also eligible to

receive assistance for the same loss under any other program

administered by the Secretary, the producer shall be required

to elect whether to receive benefits under this title or under

the other program, but not both. A producer who purchases

additional coverage under section 508(c) may also receive assistance for the same loss under other programs administered

by the Secretary, except that the amount received for the loss

under the additional coverage together with the amount

received under the other programs may not exceed the amount

of the actual loss of the producer.

‘‘(4) INCOME LIMITATION.—A person who has qualifying

gross revenues in excess of the amount specified in section

2266(a) of the Food, Agriculture, Conservation, and Trade Act

of 1990 (7 U.S.C. 1421 note) (as in effect on November 28,

1990) during the taxable year (as determined by the Secretary)

shall not be eligible to receive any noninsured assistance payment under this section.

‘‘(5) REGULATIONS.—The Secretary shall issue regulations

prescribing such rules as the Secretary determines necessary

to ensure a fair and equitable application of section 1001 of

the Food Security Act of 1985 (7 U.S.C. 1308), the general

payment limitation regulations of the Secretary, and the limitations established under this subsection.’’.

SEC. 113. PRODUCER ELIGIBILITY.

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

‘‘SEC. 520. PRODUCER ELIGIBILITY.

‘‘Except as otherwise provided in this title, a producer shall

not be denied insurance under this title if—

‘‘(1) for purposes of catastrophic risk protection coverage,

the producer is a ‘person’ (as defined by the Secretary); and

‘‘(2) for purposes of any other plan of insurance, the producer is 18 years of age and has a bona fide insurable interest

in a crop as an owner-operator, landlord, tenant, or sharecropper.’’.

SEC. 114. INELIGIBILITY FOR CATASTROPHIC RISK AND NONINSURED

ASSISTANCE PAYMENTS.

The Act (7 U.S.C. 1501 et seq.) is amended by adding at

the end the following new section:
H. R. 4217—27

‘‘SEC. 521. INELIGIBILITY FOR CATASTROPHIC RISK AND

NONINSURED ASSISTANCE PAYMENTS.

‘‘If the Secretary determines that a person has knowingly

adopted a material scheme or device to obtain catastrophic risk,

additional coverage, or noninsured assistance benefits under this

title to which the person is not entitled, has evaded this title,

or has acted with the purposes of evading this title, the person

shall be ineligible to receive all benefits applicable to the crop

year for which the scheme or device was adopted. The authority

provided by this section shall be in addition to, and shall not

supplant, the authority provided by section 506(n).’’.

SEC. 115. ELIMINATION OF GENDER REFERENCES.

(a) MANAGEMENT OF CORPORATION.—Section 505 (7 U.S.C.

1505) is amended—

(1) in subsection (a), by striking the third sentence and

inserting ‘‘The Board shall be appointed by, and hold office

at the pleasure of, the Secretary. The Secretary shall not be

a member of the Board.’’; and

(2) in subsection (d)—

(A) by striking ‘‘upon him’’; and

(B) by striking ‘‘He shall be appointed by,’’ and inserting ‘‘The manager shall be appointed by,’’.

(b) PERSONNEL.—Section 507 (7 U.S.C. 1507) is amended—

(1) in subsection (a), by striking ‘‘as he may determine:

Provided, That’’ and inserting ‘‘as the Secretary may determine

appropriate. However,’’; and

(2) in subsection (d), by striking ‘‘as he may request’’ and

inserting ‘‘that the Secretary requests’’.

(c) INDEMNITIES EXEMPT FROM LEVY.—Section 509 (7 U.S.C.

1509) is amended by striking ‘‘or his estate’’ and inserting ‘‘or

the estate of the insured’’.

SEC. 116. PREVENTED PLANTING.

(a) IN GENERAL.—Effective for the 1994 crop year, a producer described in subsection (b) shall receive compensation under the

prevented planting coverage policy provision described in subsection

(b)(1) by—(1) obtaining from the Secretary of Agriculture the

applicable amount that is payable under the conserving use

program described in subsection (b)(4); and (2) obtaining from the Federal Crop Insurance

Corporation the amount that is equal to the difference

between—

(A) the amount that is payable under the conserving

use program; and

(B) the amount that is payable under the prevented

planting coverage policy.

(b) ELIGIBLE PRODUCERS.—Subsection (a) shall apply to a producer who—

(1) purchased a prevented planting policy for the 1994

crop year from the Federal Crop Insurance Corporation prior

to the spring sales closing date for the 1994 crop year;

(2) is unable to plant a crop due to major, widespread

flooding in the Midwest, or excessive ground moisture, that

occurred prior to the spring sales closing date for the 1994

crop year;
H. R. 4217—28

(3) had a reasonable expectation of planting a crop on the prevented planting acreage for the 1994 crop year; and (4) participates in a conserving use program established for the 1994 crop of wheat, feed grains, upland cotton, or

rice established under section 107B(c)(1)(E), 105B(c)(1)(E),

103B(c)(1)(D), or 101B(c)(1)(D), respectively, of the Agricultural

Act of 1949 (7 U.S.C. 1445b–3a(c)(1)(E), 1444f(c)(1)(E), 1444–

2(c)(1)(D), or 1441–2(c)(1)(D)).

(c) OILSEED PREVENTED PLANTING PAYMENTS.— (1) IN GENERAL.—Effective for the 1994 crop year, a pro- ducer of a crop of oilseeds (as defined in section 205(a) of

the Agricultural Act of 1949 (7 U.S.C. 1446f(a))) shall receive

a prevented planting payment for the crop if the requirements

of paragraphs (1), (2), and (3) of subsection (b) are satisfied. (2) SOURCE OF PAYMENT.—The total amount of payments required under this subsection shall be made by the Federal

Crop Insurance Corporation.

(d) PAYMENT.—A payment under this section may not be made before October 1, 1994.

SEC. 117. REPORT ON IMPROVING DISSEMINATION OF CROP INSURANCE INFORMATION.

Not later than 180 days after the date of enactment of this Act and at the end of each of the 2 1-year periods thereafter,

the Federal Crop Insurance Corporation shall submit a report to

Congress containing a plan to implement a sound program for

producer education regarding the crop insurance program and for

the dissemination of crop insurance information to producers, as

required by section 508(a)(5) of the Federal Crop Insurance Act

(as amended by section 106).

SEC. 118. CROP INSURANCE PROVIDER EVALUATION.

(a) IN GENERAL.—The Comptroller General of the United States and the Federal Crop Insurance Corporation (referred to in this

section as the ‘‘Corporation’’) shall jointly evaluate the financial

arrangement between the Corporation and approved insurance

providers to determine the quality, costs, and efficiencies of providing the benefits of multiple peril crop insurance to producers of

agricultural commodities covered under the Federal Crop Insurance

Act (7 U.S.C. 1501 et seq.). (b) COLLECTION OF INFORMATION AND PROPOSALS.—The Corporation shall require private insurance providers and agents to

supply, and the private insurance providers and agents shall supply,

records and information necessary to make the determinations and

evaluations required under this section. The Corporation shall

solicit from the approved insurance providers and agents proposals

for modifying or altering the requirements, regulations, procedures,

and processes related to implementing the Federal Crop Insurance

Act to reduce the operating and administrative costs of the providers

and agents.

(c) INITIAL REPORT.—Not later than 180 days after receipt of information and cost-reduction proposals under subsection (b),

the Corporation shall evaluate the information and proposals

obtained and report the results of the evaluation to the Committee

on Agriculture of the House of Representatives and the Committee

on Agriculture, Nutrition, and Forestry of the Senate. (d) FINAL REPORT.—Not later than 2 years after the date of

enactment of this Act, the Comptroller General and the Corporation
H. R. 4217—29

shall submit a final report that provides the evaluation required

under subsection (a) to the Committee on Agriculture of the House

of Representatives and the Committee on Agriculture, Nutrition,

and Forestry of the Senate. In making the evaluation, the Comptroller General and the Corporation shall—

(1) consider the changes made by the Corporation in

response to increased program participation resulting from the

enactment of this Act;

(2) include an evaluation and opinion of the accuracy and

reasonableness of—

(A) the average actual costs for approved insurance

providers to deliver multiple peril crop insurance;

(B) the cost per policy of complying with the requirements, regulations, procedures, and processes of the Federal Crop Insurance Act;

(C) the cost differences for various provider firm sizes

and any business delivered by the Federal Government;

(D) the adequacy of the standard reimbursement for

potential new providers; and

(E) the identification of any new costs related to the

enactment of this Act not previously identified in the

information reported by the providers;

(3) compare delivery costs of multiple peril crop insurance

to other insurance coverages that the provider may sell and

determine the extent, if any, to which any funds provided

to carry out the Federal Crop Insurance Act are being used

to fund any other business enterprise operated by the provider;

(4)(A) assess alternative methods for reimbursing providers

for reasonable and necessary expenses associated with delivery

of multiple peril crop insurance;

(B) recommend changes under this paragraph that reasonably demonstrate the need to achieve the greatest operating

efficiencies on the part of the provider and the Corporation

has been recognized; and

(C) identify areas for improved operating efficiencies, if

any, in the requirements made by the Corporation for compliance and program integrity;

(5) assess the potential for alternative forms of reinsurance

arrangements for providers of different firm sizes, taking into

consideration—

(A) the need to achieve a reasonable return on the

capital of the provider compared to other lines of insurance;

(B) the relative risk borne by the provider for the

different lines of insurance;

(C) the availability and price of commercial reinsurance; and

(D) any additional costs that may be incurred by the

Federal Government in carrying out the Federal Crop

Insurance Act; and

(6) include an analysis of the effect of the current or proposed reinsurance arrangements on providers having different

business levels.

(e) INFORMATION.—

(1) PRIVACY.—In conducting the evaluation required by

this section, the Comptroller General and the Corporation shall

maintain the privacy of proprietary information.
H. R. 4217—30

(2) SUBPOENAS.—The Comptroller General shall have the

power to subpoena information relevant to the evaluation

required by this section from any private insurance provider.

The Comptroller General shall allow the Corporation access

to the information subpoenaed taking into consideration the

necessity of preserving the privacy of proprietary information.

SEC. 119. CONFORMING AMENDMENTS.

(a) PRICE SUPPORT PROGRAMS.— (1) IN GENERAL.—Title IV of the Agricultural Act of 1949 (7 U.S.C. 1421 et seq.) is amended by adding at the end the

following new section:

‘‘SEC. 427. CROP INSURANCE REQUIREMENT.

‘‘As a condition of receiving any benefit (including payments) under title I or II for each of the 1995 and subsequent crops

of tobacco, rice, extra long staple cotton, upland cotton, feed grains,

wheat, peanuts, oilseeds, and sugar, a producer must obtain at

least catastrophic risk protection insurance coverage under section

508 of the Federal Crop Insurance Act (7 U.S.C. 1508) for the

crop and crop year for which the benefit is sought, if the coverage

is offered by the Corporation.’’. (2) RICE.—Section 101B(c) of such Act (7 U.S.C. 1441–

2(c)) is amended—

(A) in paragraph (1), by striking subparagraph (F); and

(B) by striking paragraph (2) and inserting the follow- ing 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 follow- ing 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 follow- ing 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.’’.
H. R. 4217—31

(6) DISASTER PAYMENTS.—Section 208 of such Act (7 U.S.C.

1446i) is repealed.

(b) FARMERS HOME ADMINISTRATION PROGRAMS.—The Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et seq.)

is amended by adding at the end the following new section:

‘‘SEC. 371. CROP INSURANCE REQUIREMENT.

‘‘(a) IN GENERAL.—As a condition of obtaining any benefit

(including a direct loan, loan guarantee, or payment) described

in subsection (b), a borrower must obtain at least catastrophic

risk protection insurance coverage under section 508 of the Federal

Crop Insurance Act (7 U.S.C. 1508) for the crop and crop year

for which the benefit is sought, if the coverage is offered by the

Corporation.

‘‘(b) APPLICABLE BENEFITS.—Subsection (a) shall apply to—

‘‘(1) a farm ownership loan (FO) under section 303;

‘‘(2) an operating loan (OL) under section 312; and

‘‘(3) an emergency loan (EM) under section 321.’’.

(c) DISASTER ASSISTANCE.—Subtitle B of title XXII of the Food,

Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 1421

note) is amended by striking chapter 3.

(d) EMERGENCY APPROPRIATIONS.—

(1) IN GENERAL.—Effective January 1, 1995, section

251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit

Control Act of 1985 (2 U.S.C. 901(b)(2)(D)(i)) is amended by

adding at the end the following new sentence: ‘‘This subparagraph shall not apply to appropriations to cover agricultural

crop disaster assistance.’’.

(2) EMERGENCY LEGISLATION.—Effective January 1, 1995,

section 252(e) of such Act (2 U.S.C. 902(e)) is amended by

adding at the end the following new sentence: ‘‘This subsection

shall not apply to direct spending provisions to cover agricultural crop disaster assistance.’’.

(e) FALSE STATEMENTS.—Section 1014 of title 18, United States

Code, is amended by inserting ‘‘or a company the Corporation

reinsures’’ after ‘‘Federal Crop Insurance Corporation’’.

(f) TECHNICAL AMENDMENTS.—

(1) The first sentence of section 506(d) (7 U.S.C. 1506(d))

is amended by striking ‘‘508(f)’’ and inserting ‘‘508(j)’’.

(2) The last sentence of section 507(c) (7 U.S.C. 1507(c))

is amended by striking ‘‘508(b)’’ and inserting ‘‘508(h)’’.

(3) Section 518 (7 U.S.C. 1518) is amended by striking

‘‘(k)’’ and inserting ‘‘(m)’’.

SEC. 120. EFFECTIVE DATE.

Except as otherwise provided in this title, this title and the

amendments made by this title shall become effective on the date

of enactment of this Act and shall apply to the provision of crop

insurance under the Federal Crop Insurance Act (7 U.S.C. 1501

et seq.) beginning with the 1995 crop year. With respect to the

1994 crop year, the Federal Crop Insurance Act (as in effect on

the day before the date of enactment of this Act) shall continue

to apply.
H. R. 4217—32

TITLE II—DEPARTMENT OF

AGRICULTURE REORGANIZATION

SEC. 201. SHORT TITLE.

(a) SHORT TITLE.—This title may be cited as the ‘‘Department

of Agriculture Reorganization Act of 1994’’.

SEC. 202. PURPOSE.

The purpose of this title is to provide the Secretary of Agriculture with the necessary authority to streamline and reorganize

the Department of Agriculture to achieve greater efficiency,

effectiveness, and economies in the organization and management

of the programs and activities carried out by the Department.

SEC. 203. DEFINITIONS.

Except where the context requires otherwise, for purposes of

this title:

(1) DEPARTMENT.—The term ‘‘Department’’ means the

Department of Agriculture.

(2) NATIONAL APPEALS DIVISION.—The term ‘‘National

Appeals Division’’ means the National Appeals Division of the

Department established under section 272.

(3) SECRETARY.—The term ‘‘Secretary’’ means the Secretary

of Agriculture.

(4) FUNCTION.—The term ‘‘function’’ means an administrative, financial, or regulatory activity of an agency, office, officer,

or employee of the Department.

Subtitle A—General Reorganization

Authorities

SEC. 211. TRANSFER OF DEPARTMENT FUNCTIONS TO SECRETARY OF

AGRICULTURE.

(a) TRANSFER OF FUNCTIONS.—Except as provided in subsection

(b), there are transferred to the Secretary of Agriculture all functions of all agencies, offices, officers, and employees of the Department that are not already vested in the Secretary on the date

of the enactment of this Act.

(b) EXCEPTIONS.—Subsection (a) shall not apply to the following

functions:

(1) Functions vested by subchapter II of chapter 5 of title

5, United States Code, in administrative law judges employed

by the Department.

(2) Functions vested by the Inspector General Act of 1978

(5 U.S.C. App.) in the Inspector General of the Department.

(3) Functions vested by chapter 9 of title 31, United States

Code, in the Chief Financial Officer of the Department.

(4) Functions vested in the corporations of the Department

or the boards of directors and officers of such corporations.

(5) Functions vested in the Alternative Agricultural

Research and Commercialization Board by the Alternative Agricultural Research and Commercialization Act of 1990 (7 U.S.C.

5901 et seq.).
H. R. 4217—33

SEC. 212. AUTHORITY OF SECRETARY TO DELEGATE TRANSFERRED

FUNCTIONS.

(a) DELEGATION OF AUTHORITY.—

(1) DELEGATION AUTHORIZED.—Subject to paragraph (2),

the Secretary may delegate to any agency, office, officer, or

employee of the Department the authority to perform any function transferred to the Secretary under section 211(a) or any

other function vested in the Secretary as of the date of the

enactment of this Act. The authority provided in the preceding

sentence includes the authority to establish, consolidate, alter,

or discontinue any agency, office, or other administrative unit

of the Department.

(2) CONDITION ON AUTHORITY.—The delegation authority

provided by paragraph (1) shall be subject to—

(A) sections 232, 251(d), 273, and 304 and subsections

(a) and (b)(1) of section 261;

(B) sections 502 and 503 of the Agricultural Trade

Act of 1978 (7 U.S.C. 5692 and 5693); and

(C) section 8(b)(5) of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)(5)).

(b) COST-BENEFIT ANALYSIS REQUIRED FOR NAME CHANGE.—

(1) ANALYSIS REQUIRED.—Except as provided in paragraph

(2), the Secretary shall conduct a cost-benefit analysis before

changing the name of any agency, office, division, or other

unit of the Department to ensure that the benefits to be derived

from changing the name of the agency, office, division, or other

unit outweigh the expense of executing the name change.

(2) EXCEPTION.—Paragraph (1) shall not apply with respect

to any name change required or authorized by this title.

(c) PUBLIC COMMENT ON PROPOSED REORGANIZATION.—To the

extent that the implementation of the authority provided to the

Secretary by this title to reorganize the Department involves the

creation of new agencies or offices within the Department or the

delegation of major functions or major groups of functions to any

agency or office of the Department (or the officers or employees

of such agency or office), the Secretary shall, to the extent considered practicable by the Secretary—

(1) give appropriate advance public notice of the proposed

reorganization action or delegation; and

(2) afford appropriate opportunity for interested parties

to comment on the proposed reorganization action or delegation.

(d) INTERAGENCY TRANSFER OF RECORDS, PROPERTY, PERSONNEL, AND FUNDS.—

(1) RELATED TRANSFERS.—Subject to paragraph (2), as part

of the transfer or delegation of a function of the Department

made or authorized by this title, the Secretary may transfer

within the Department—

(A) any of the records, property, or personnel affected

by the transfer or delegation of the function; and

(B) unexpended balances (available or to be made available for use in connection with the transferred or delegated

function) of appropriations, allocations, or other funds of

the Department.

(2) APPLICABLE LAW RELATING TO FUNDS TRANSFER.—Section 1531 of title 31, United States Code, shall apply to any

transfer of funds under paragraph (1).
H. R. 4217—34

(e) EXHAUSTION OF ADMINISTRATIVE APPEALS.—Notwithstanding any other provision of law, a person shall exhaust all administrative appeal procedures established by the Secretary or required

by law before the person may bring an action in a court of competent

jurisdiction against—

(1) the Secretary;

(2) the Department; or

(3) an agency, office, officer, or employee of the Department.

SEC. 213. REDUCTIONS IN NUMBER OF DEPARTMENT PERSONNEL.

(a) DEFINITIONS.—For purposes of this section:

(1) HEADQUARTERS OFFICES.—The term ‘‘headquarters

offices’’, with respect to agencies, offices, or other administrative

units of the Department, means the offices, functions, and

employee positions that are located or performed—

(A) in Washington, District of Columbia; or

(B) in such other locations as are identified by the

Secretary for purposes of this section.

(2) FIELD STRUCTURE.—The term ‘‘field structure’’ means

the offices, functions, and employee positions of all agencies,

offices, or other administrative units of the Department, other

than the headquarters offices, except that the term does not

include State, county, or area committees established under

section 8(b)(5) of the Soil Conservation and Domestic Allotment

Act (16 U.S.C. 590h(b)(5)). The term includes the physical and

geographic locations of such agencies, offices, or other administrative units.

(b) NUMBER OF REDUCTIONS REQUIRED.—The Secretary shall

achieve Federal employee reductions of at least 7,500 staff years

within the Department by the end of fiscal year 1999. Reductions

in the number of full-time equivalent positions within the Department achieved under section 5 of the Federal Workforce Restructuring Act of 1994 (Public Law 103–226; 108 Stat. 115; 5 U.S.C.

3101 note) shall be counted toward the employee reductions

required under this section.

(c) EMPHASIS ON HEADQUARTERS OFFICES REDUCTIONS.—In

achieving the employee reductions required by subsection (b), the

Secretary shall pursue a goal so that the percentage of the total

number of employee staff years reduced in headquarters offices

is at least twice the percentage of the total number of employee

staff years reduced in the field structure. (d) SCHEDULE.—The personnel reductions in headquarters

offices and in the field structure should be accomplished concurrently in a manner determined by the Secretary.

SEC. 214. CONSOLIDATION OF HEADQUARTERS OFFICES.

Subject to the availability of appropriated funds for this purpose, the Secretary shall develop and carry out a plan to consolidate

offices located in Washington, District of Columbia, of agencies,

offices, and other administrative units of the Department.

SEC. 215. COMBINATION OF FIELD OFFICES.

(a) COMBINATION OF OFFICES REQUIRED.—Where practicable

and to the extent consistent with efficient, effective, and improved

service, the Secretary shall combine field offices of agencies within

the Department to reduce personnel and duplicative overhead

expenses.
H. R. 4217—35

(b) JOINT USE OF RESOURCES AND OFFICES REQUIRED.—When

two or more agencies of the Department share a common field

office, the Secretary shall require the agencies to jointly use office

space, equipment, office supplies, administrative personnel, and

clerical personnel associated with that field office.

SEC. 216. IMPROVEMENT OF INFORMATION SHARING.

Whenever the Secretary procures or uses computer systems,

as may be provided for in advance in appropriations Acts, the

Secretary shall do so in a manner that enhances efficiency,

productivity, and client services and is consistent with the goal

of promoting computer information sharing among agencies of the

Department.

SEC. 217. REPORTS BY THE SECRETARY.

(a) IN GENERAL.—Subject to subsection (b), notwithstanding

any other provision of law, the Secretary may, but shall not be

required to, prepare and submit any report solely to the Committee

on Agriculture of the House of Representatives and the Committee

on Agriculture, Nutrition, and Forestry of the Senate.

(b) LIMITATION.—For each fiscal year, the Secretary may not

prepare and submit more than 30 reports referred to in subsection

(a).

(c) SELECTION OF REPORTS.—In consultation with the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate, the

Secretary shall determine which reports, if any, the Secretary will

prepare and submit in accordance with subsection (b).

SEC. 218. ASSISTANT SECRETARIES OF AGRICULTURE.

(a) AUTHORIZATION.—The Secretary is authorized to establish

in the Department the positions of—

(1) Assistant Secretary of Agriculture for Congressional

Relations;

(2) Assistant Secretary of Agriculture for Administration;

and

(3) Assistant Secretary of Agriculture for Marketing and

Regulatory Programs.

(b) CONFIRMATION REQUIRED.—If the Secretary establishes any position of Assistant Secretary authorized under subsection (a),

the Assistant Secretary shall be appointed by the President, by

and with the advice and consent of the Senate.

(c) SUCCESSION.—Any official who is serving as Assistant Secretary of Agriculture for Administration or Assistant Secretary of

Agriculture for Congressional Relations on the date of the enactment of this Act and who was appointed as such Assistant Secretary

by the President, by and with the advice and consent of the Senate,

shall not be required to be reappointed under subsection (b) to

the successor position authorized under subsection (a) if the Secretary establishes the position, and the official occupies the new

position, within 180 days after the date of the enactment of this

Act (or such later date set by the Secretary if litigation delays

rapid succession).

(d) EXECUTIVE SCHEDULE.—Section 5315 of title 5, United

States Code, is amended by striking ‘‘Assistant Secretaries of Agriculture (7).’’ and inserting ‘‘Assistant Secretaries of Agriculture

(3).’’.
H. R. 4217—36

(e) REPEAL OF SUPERSEDED PROVISIONS REGARDING ASSISTANT

SECRETARIES.—The following provisions of law are repealed: (1) Section 2 of Reorganization Plan No. 2 of 1953 (5 U.S.C. App; 7 U.S.C. 2201 note). (2) Section 2 of the Act entitled ‘‘An Act to enlarge the powers and duties of the Department of Agriculture and to

create an Executive Department to be known as the Department of Agriculture.’’, approved February 9, 1889 (7 U.S.C.

2212).

(3) The first paragraph designated ‘‘OFFICE OF THE SEC- RETARY:’’ under the heading ‘‘DEPARTMENT OF AGRI- CULTURE’’ of the Act entitled ‘‘An Act making appropriations

for the Department of Agriculture for the fiscal year ending

June thirtieth, nineteen hundred and seven.’’, approved June

30, 1906 (34 Stat. 670; 7 U.S.C. 2212).

(4) Section 604(a) of the Rural Development Act of 1972 (7 U.S.C. 2212a).

(5) Section 2 of Public Law 94–561 (7 U.S.C. 2212b).

(6) Section 8(a) of Public Law 97–325 (7 U.S.C. 2212c).

(7) Section 1413(d) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3128(d)).

SEC. 219. PAY INCREASES PROHIBITED.

The compensation of any officer or employee of the Department

on the date of the enactment of this Act shall not be increased

as a result of the enactment of this title.

Subtitle B—Farm and Foreign Agricultural

Services

SEC. 225. UNDER SECRETARY OF AGRICULTURE FOR FARM AND FOREIGN AGRICULTURAL SERVICES.

(a) AUTHORIZATION.—The Secretary is authorized to establish

in the Department the position of Under Secretary of Agriculture

for Farm and Foreign Agricultural Services.

(b) CONFIRMATION REQUIRED.—If the Secretary establishes the

position of Under Secretary of Agriculture for Farm and Foreign

Agricultural Services authorized under subsection (a), the Under

Secretary shall be appointed by the President, by and with the

advice and consent of the Senate.

(c) FUNCTIONS OF UNDER SECRETARY.—

(1) PRINCIPAL FUNCTIONS.—Upon establishment, the Secretary shall delegate to the Under Secretary of Agriculture

for Farm and Foreign Agricultural Services those functions

under the jurisdiction of the Department that are related to

farm and foreign agricultural services. (2) ADDITIONAL FUNCTIONS.—The Under Secretary of Agriculture for Farm and Foreign Agricultural Services shall perform such other functions as may be required by law or

prescribed by the Secretary.

(d) SUCCESSION.—Any official who is serving as Under Secretary

of Agriculture for International Affairs and Commodity Programs

on the date of the enactment of this Act and who was appointed

by the President, by and with the advice and consent of the Senate,

shall not be required to be reappointed under subsection (b) to

the successor position authorized under subsection (a) if the Sec-
H. R. 4217—37

retary establishes the position, and the official occupies the new

position, within 180 days after the date of the enactment of this

Act (or such later date set by the Secretary if litigation delays

rapid succession).

(e) CONFORMING AMENDMENTS.—

(1) EXISTING POSITION.—Section 501 of the Agricultural

Trade Act of 1978 (7 U.S.C. 5691), relating to the Under Secretary of Agriculture for International Affairs and Commodity

Programs, is repealed.

(2) EXECUTIVE SCHEDULE.—Section 5314 of title 5, United

States Code, is amended by striking ‘‘Under Secretary of Agriculture for International Affairs and Commodity Programs.’’

and inserting ‘‘Under Secretary of Agriculture for Farm and

Foreign Agricultural Services.’’.

SEC. 226. CONSOLIDATED FARM SERVICE AGENCY.

(a) ESTABLISHMENT.—The Secretary is authorized to establish

and maintain in the Department a Consolidated Farm Service

Agency.

(b) FUNCTIONS OF CONSOLIDATED FARM SERVICE AGENCY.—

If the Secretary establishes the Consolidated Farm Service Agency

under subsection (a), the Secretary is authorized to assign to the

Agency jurisdiction over the following functions:

(1) Agricultural price and income support programs,

production adjustment programs, and related programs.

(2) General supervision of the Federal Crop Insurance

Corporation.

(3) Agricultural credit programs assigned before the date

of the enactment of this Act by law to the Farmers Home

Administration (including farm ownership and operating, emergency, and disaster loan programs) and other lending programs

for agricultural producers and others engaged in the production

of agricultural commodities.

(4) Subchapter B of chapter 1 of subtitle D of title XII

of the Food Security Act of 1985 (16 U.S.C. 3831–3836) and

the agricultural conservation program under the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590g et seq.).

(5) Such other functions as the Secretary considers appropriate, except for those programs assigned by the Secretary

to the Natural Resources Conservation Service or another

agency of the Department under section 246(b).

(c) SPECIAL CONCURRENCE REQUIREMENTS FOR CERTAIN FUNCTIONS.—In carrying out the programs specified in subsection (b)(4),

the Secretary shall—

(1) acting on the recommendations of the Consolidated

Farm Service Agency, with the concurrence of the Natural

Resources Conservation Service, issue regulations to carry out

such programs;

(2) ensure that the Consolidated Farm Service Agency,

in establishing policies, priorities, and guidelines for such programs, does so with the concurrence of the Natural Resources

Conservation Service at national, State, and local levels;

(3) ensure that, in reaching such concurrence at the local

level, the Natural Resources Conservation Service works in

cooperation with Soil and Water Conservation Districts or similar organizations established under State law;
H. R. 4217—38

(4) ensure that officials of county and area committees

established under section 8(b)(5) of the Soil Conservation and

Domestic Allotment Act (16 U.S.C. 590h(b)(5)) meet annually

with officials of such Districts or similar organizations to consider local conservation priorities and guidelines; and

(5) take steps to ensure that the concurrence process does

not interfere with the effective delivery of such programs.

(d) JURISDICTION OVER CONSERVATION PROGRAM APPEALS.—

(1) IN GENERAL.—Until such time as an adverse decision

described in this paragraph is referred to the National Appeals

Division for consideration, the Consolidated Farm Service

Agency shall have initial jurisdiction over any administrative

appeal resulting from an adverse decision made under title

XII of the Food Security Act of 1985 (16 U.S.C. 3801 et seq.),

including an adverse decision involving technical determinations made by the Natural Resources Conservation Service.

(2) TREATMENT OF TECHNICAL DETERMINATION.—With

respect to administrative appeals involving a technical determination made by the Natural Resources Conservation Service,

the Consolidated Farm Service Agency, by rule with the concurrence of the Natural Resources Conservation Service, shall

establish procedures for obtaining review by the Natural

Resources Conservation Service of the technical determinations

involved. Such rules shall ensure that technical criteria established by the Natural Resources Conservation Service shall

be used by the Consolidated Farm Service Agency as the basis

for any decisions regarding technical determinations. If no

review is requested, the technical determination of the Natural

Resources Conservation Service shall be the technical basis

for any decision rendered by a county or area committee established under section 8(b)(5) of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)(5)). If the committee

requests a review by the Natural Resources Conservation Service of a wetlands determination of the Service, the Consolidated

Farm Service Agency shall consult with other Federal agencies

whenever required by law or under a memorandum of agreement in existence on the date of the enactment of this Act.

(3) REINSTATEMENT OF PROGRAM BENEFITS.—Rules issued

to carry out this subsection shall provide for the prompt

reinstatement of benefits to a producer who is determined

in an administrative appeal to meet the requirements of title

XII of the Food Security Act of 1985 applicable to the producer.

(e) USE OF FEDERAL AND NON-FEDERAL EMPLOYEES.—

(1) USE AUTHORIZED.—In the implementation of programs

and activities assigned to the Consolidated Farm Service

Agency, the Secretary may use interchangeably in local offices

of the Agency both Federal employees of the Department and

non-Federal employees of county and area committees established under section 8(b)(5) of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)(5)).

(2) EXCEPTION.—Notwithstanding paragraph (1), no personnel action (as defined in section 2302(a)(2)(A) of title 5, United

States Code) may be taken with respect to a Federal employee

unless such action is taken by another Federal employee.

(f) COLLOCATION.—To the maximum extent practicable, the

Secretary shall collocate county offices of the Consolidated Farm
H. R. 4217—39

Service Agency with county offices of the Natural Resources Conservation Service in order to—

(1) maximize savings from shared equipment, office space,

and administrative support;

(2) simplify paperwork and regulatory requirements;

(3) provide improved services to agricultural producers and

landowners affected by programs administered by the Agency

and the Service; and

(4) achieve computer compatibility between the Agency and

the Service to maximize efficiency and savings.

(g) SAVINGS PROVISION.—For purposes of subsections (c)

through (f) of this section:

(1) A reference to the ‘‘Consolidated Farm Service Agency’’

includes any other office, agency, or administrative unit of

the Department assigned the functions authorized for the

Consolidated Farm Service Agency under this section.

(2) A reference to the ‘‘Natural Resources Conservation

Service’’ includes any other office, agency, or administrative

unit of the Department assigned the functions authorized for

the Natural Resources Conservation Service under section

246(b).

(h) CONFORMING AMENDMENT.—Section 331(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1981(a)) is

amended by striking ‘‘assets to the Farmers Home Administration’’

and all that follows through the period at the end of the subsection

and inserting ‘‘assets to such officers or agencies of the Department

of Agriculture as the Secretary considers appropriate.’’.

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

(a) COMMITTEES UNDER THE SOIL CONSERVATION AND DOMESTIC

ALLOTMENT ACT.—Section 8(b) of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)) is amended—

(1) by inserting ‘‘(1)’’ after ‘‘(b)’’;

(2) by designating the second through eighth undesignated paragraphs as paragraphs (2) through (8), respectively; and (3) by striking paragraph (5) (as so designated) and inserting the following new paragraph:

‘‘(5) STATE, COUNTY, AND AREA COMMITTEES.— ‘‘(A) APPOINTMENT OF STATE COMMITTEES.—The Secretary

shall appoint in each State a State committee composed of

not fewer than 3 nor more than 5 members who are fairly

representative of the farmers in the State. The members of

a State committee shall serve at the pleasure of the Secretary

for such term as the Secretary may establish. ‘‘(B) ESTABLISHMENT OF COUNTY, AREA, OR LOCAL COMMITTEES.—(i) In each county or area in which activities are carried

out under this section, the Secretary shall establish a county

or area committee.

‘‘(ii) Any such committee shall consist of not fewer than

3 nor more than 5 members who are fairly representative

of the agricultural producers in the county or area and who

shall be elected by the agricultural producers in such county

or area under such procedures as the Secretary may prescribe.

‘‘(iii) The Secretary may designate local administrative

areas within the county or larger area covered by a committee

established under clause (i). Only agricultural producers within

a local administrative area who participate or cooperate in
H. R. 4217—40

programs administered within their area shall be eligible for

nomination and election to the local committee for that area,

under such regulations as the Secretary may prescribe.

‘‘(iv) The Secretary shall solicit and accept nominations

from organizations representing the interests of socially disadvantaged groups (as defined in section 355(e)(1) of the

Consolidated Farm and Rural Development Act (7 U.S.C.

2003(e)(1)).

‘‘(v) Members of each county, area, or local committee shall

serve for terms not to exceed 3 years.

‘‘(C) TERMINATION OR COMBINATION OF COMMITTEES.—The

Secretary may not terminate a county or area committee or

combine or consolidate two or more county or area committees

unless—

‘‘(i) the Secretary first notifies the committee or

committees involved of the proposed action; and

‘‘(ii) the State committee of the State in which the

affected counties are located approves of such action in

a vote taken after the end of the 60-day period beginning

on the date the notification is received.

‘‘(D) USE OF COMMITTEES.—The Secretary shall use the

services of such committees in carrying out programs under

this section and the agricultural credit programs under the

Consolidated Farm and Rural Development Act (7 U.S.C. 1921

et seq.) and in considering administrative appeals as provided

by section 226(d) of the Department of Agriculture Reorganization Act of 1994. The Secretary may use the services of such

committees in carrying out programs under other authorities

administered by the Secretary. ‘‘(E) REGULATIONS.—The Secretary shall issue such regulations as the Secretary considers necessary relating to the selection and exercise of the functions of the respective committees,

and to the administration through such committees of the programs described in subparagraph (D). Pursuant to such regulations, each county and area committee shall select an executive

director for the area or county. Such selection shall be made

in the same manner as provided for the selection of the county

executive director under section 7.21(b)(2) of title 7, Code of

Federal Regulations, as in effect on January 1, 1994. Regulations governing payments or grants under this subsection shall

be as simple and direct as possible, and, whenever practicable,

they shall be classified on the following two bases: ‘‘(i) Soil-depleting practices.

‘‘(ii) Soil-building practices. ‘‘(F) MANDATORY DUTIES OF SECRETARY.—In carrying out

this section, the Secretary shall—

‘‘(i) insofar as practicable, protect the interests of tenants and sharecroppers;

‘‘(ii) accord such encouragement to producer-owned and

producer-controlled cooperative associations as will be in

harmony with the policy toward cooperative associations

set forth in Federal laws and as will tend to promote

efficient methods of marketing and distribution;

‘‘(iii) in every practicable manner, protect the interests

of small producers; and

‘‘(iv) in every practical way, encourage and provide

for soil-conserving and soil-rebuilding practices.
H. R. 4217—41

‘‘(G) DISCRETIONARY AUTHORITIES OF SECRETARY.—In carry- ing out this section, the Secretary may use other approved

agencies. ‘‘(H) LIMITATIONS.—In carrying out this section, the Sec- retary shall not have the authority to acquire any land or

any right or interest in land.’’.

(b) ELIMINATION OF FMHA COUNTY COMMITTEES.—The Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et seq.)

is amended—

(1) by striking section 332 (7 U.S.C. 1982); and

(2) in section 333 (7 U.S.C. 1983)—

(A) by striking paragraph (2); and

(B) redesignating paragraphs (3), (4), and (5) as para- graphs (2), (3), and (4), respectively.

Subtitle C—Rural Economic and

Community Development

SEC. 231. UNDER SECRETARY OF AGRICULTURE FOR RURAL ECONOMIC AND COMMUNITY DEVELOPMENT.

(a) AUTHORIZATION.—The Secretary is authorized to establish in the Department the position of Under Secretary of Agriculture

for Rural Economic and Community Development. (b) CONFIRMATION REQUIRED.—If the Secretary establishes the position of Under Secretary of Agriculture for Rural Economic and

Community Development authorized under subsection (a), the

Under Secretary shall be appointed by the President, by and with

the advice and consent of the Senate.

(c) FUNCTIONS OF UNDER SECRETARY.— (1) PRINCIPAL FUNCTIONS.—Upon establishment, the Secretary shall delegate to the Under Secretary of Agriculture

for Rural Economic and Community Development those functions under the jurisdiction of the Department that are related

to rural economic and community development. (2) ADDITIONAL FUNCTIONS.—The Under Secretary of Agri- culture for Rural Economic and Community Development shall

perform such other functions as may be required by law or

prescribed by the Secretary.

(d) SUCCESSION.—Any official who is serving as Under Secretary of Agriculture for Small Community and Rural Development on

the date of the enactment of this Act and who was appointed

by the President, by and with the advice and consent of the Senate,

shall not be required to be reappointed under subsection (b) to

the successor position authorized under subsection (a) if the Secretary establishes the position, and the official occupies the new

position, within 180 days after the date of the enactment of this

Act (or such later date set by the Secretary if litigation delays

rapid succession). (e) LOAN APPROVAL AUTHORITY.—Approval authority for loans

and loan guarantees in connection with the electric and telephone

loan and loan guarantee programs authorized by the Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.) shall not be transferred

to, or conditioned on review of, a State director or other employee

whose primary duty is not the review and approval of such loans

or the provision of assistance to such borrowers.

(f) CONFORMING AMENDMENTS.—
H. R. 4217—42

(1) EXISTING POSITION.—Section 3 of the Rural Develop- ment Policy Act of 1980 (7 U.S.C. 2211b) is amended by striking

subsection (a).

(2) EXECUTIVE SCHEDULE.—Section 5314 of title 5, United

States Code, is amended by striking ‘‘Under Secretary of Agriculture for Small Community and Rural Development.’’ and

inserting ‘‘Under Secretary of Agriculture for Rural Economic

and Community Development.’’. (3) REPEAL OF RURAL DEVELOPMENT ADMINISTRATION.—Section 364 of the Consolidated Farm and Rural Development

Act (7 U.S.C. 2006f) is repealed.

SEC. 232. RURAL UTILITIES SERVICE.

(a) ESTABLISHMENT REQUIRED.—The Secretary shall establish and maintain within the Department the Rural Utilities Service

and assign to the Service such functions as the Secretary considers

appropriate. (b) ADMINISTRATOR.— (1) APPOINTMENT.—The Rural Utilities Service shall be

headed by an Administrator who shall be appointed by the

President, by and with the advice and consent of the Senate. (2) SUCCESSION.—Any official who is serving as Adminis- trator of the Rural Electrification Administration on the date

of the enactment of this Act and who was appointed by the

President, by and with the advice and consent of the Senate— (A) may be considered to be serving in the successor position established under paragraph (1); and (B) shall not be required to be reappointed to that

position by reason of the enactment of this Act.

(3) EXECUTIVE SCHEDULE.—Section 5315 of title 5, United

States Code, is amended by adding at the end the following: ‘‘Administrator, Rural Utilities Service, Department of

Agriculture.’’.

(c) FUNCTIONS.—The Secretary shall carry out through the Rural Utilities Service the following functions that are under the

jurisdiction of the Department: (1) Electric and telephone loan programs and water and waste facility activities authorized by law, including— (A) the Rural Electrification Act of 1936 (7 U.S.C.

901 et seq.); and (B) section 2322 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 1926–1); and

(2) Water and waste facility programs and activities author- ized by law, including— (A) sections 306, 306A, 306B, and 306C, the provisions

of sections 309 and 309A relating to assets, terms, and

conditions of water and sewer programs, section 310B(b)(2),

and the amendment made by section 342 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1926,

1926a, 1926b, 1926c, 1929, 1929a, 1932(b)(2), and 1013a);

and

(B) section 2324 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 1926 note).

SEC. 233. RURAL HOUSING AND COMMUNITY DEVELOPMENT

SERVICE.

(a) ESTABLISHMENT AUTHORIZED.—Notwithstanding any other

provision of law, the Secretary is authorized to establish and main-
H. R. 4217—43

tain within the Department the Rural Housing and Community

Development Service and to assign to the Service such functions

as the Secretary considers appropriate. (b) FUNCTIONS.—If the Secretary establishes the Rural Housing and Community Development Service under subsection (a), the

Secretary is authorized to assign to the Service jurisdiction over

the following: (1) Programs and activities under title V of the Housing Act of 1949 (42 U.S.C. 1471 et seq.). (2) Programs and activities authorized under section 310B(i) of the Consolidated Farm and Rural Development Act

(7 U.S.C. 1932(i)) and related provisions of law. (3) Programs and activities that relate to rural community lending programs, including programs authorized by sections

365 through 369 of the Consolidated Farm and Rural Development Act (7 U.S.C. 2008–2008d).

SEC. 234. RURAL BUSINESS AND COOPERATIVE DEVELOPMENT

SERVICE.

(a) ESTABLISHMENT AUTHORIZED.—Notwithstanding any other

provision of law, the Secretary is authorized to establish and maintain within the Department the Rural Business and Cooperative

Development Service and to assign to the Service such functions

as the Secretary considers appropriate. (b) FUNCTIONS.—If the Secretary establishes the Rural Business and Cooperative Development Service under subsection (a), the

Secretary is authorized to assign to the Service jurisdiction over

the following: (1) Section 313 and title V of the Rural Electrification

Act of 1936 (7 U.S.C. 940c and 950aa et seq.).

(2) Subtitle G of title XVI of the Food, Agriculture, Con- servation, and Trade Act of 1990 (7 U.S.C. 5901 et seq.).

(3) Sections 306(a)(1) and 310B of the Consolidated Farm

and Rural Development Act (7 U.S.C. 1926(a)(1) and 1932).

(4) Section 1323 of the Food Security Act of 1985 (Public Law 99–198; 7 U.S.C. 1932 note).

(5) The Act of July 2, 1926 (44 Stat. 802, chapter 725; 7 U.S.C. 451 et seq.).

SEC. 235. CONFORMING AMENDMENTS REGARDING RURAL ELECTRIFICATION ADMINISTRATION.

(a) AMENDMENTS TO RURAL ELECTRIFICATION ACT OF 1936.—

The Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.) is

amended—

(1) by striking the first section (7 U.S.C. 901) and inserting

the following:

‘‘SECTION 1. SHORT TITLE.

‘‘This Act may be cited as the ‘Rural Electrification Act of

1936’.’’;

(2) in section 2(a) (7 U.S.C. 902(a)), by striking ‘‘Administrator’’ and inserting ‘‘Secretary of Agriculture’’; (3) in section 3(a) (7 U.S.C. 903(a))—

(A) by striking ‘‘Administrator, upon the request and

approval of the Secretary of Agriculture,’’ and inserting

‘‘Secretary’’; and

(B) by striking ‘‘Administrator appointed pursuant to

the provisions of this Act or from the Administrator of
H. R. 4217—44

the Rural Electrification Administration established by

Executive Order Numbered 7037’’ and inserting ‘‘Secretary’’;

(4) in section 8 (7 U.S.C. 908)—

(A) by striking ‘‘Administrator authorized to be

appointed by this Act’’ and inserting ‘‘Secretary’’; and

(B) by striking ‘‘Rural Electrification Administration

created by this Act’’ and inserting ‘‘Secretary’’;

(5) by striking section 11A (7 U.S.C. 911a);

(6) in section 13 (7 U.S.C. 913), by inserting before the

period at the end the following: ‘‘; and the term ‘Secretary’

shall be deemed to mean the Secretary of Agriculture’’;

(7) in sections 206(b)(2), 306A(b), 311, and 405(b)(1)(A)

(7 U.S.C. 927(b)(2), 936a(b), 940a, and 945(b)(1)(A)), by striking

‘‘Rural Electrification Administration’’ each place it appears

and inserting ‘‘Secretary’’;

(8) in sections 305(c)(2)(C)(ii)(II) and 306E(d) (7 U.S.C.

935(c)(2)(C)(ii)(II) and 936e(d)), by striking ‘‘ADMINISTRATOR’’

and inserting ‘‘SECRETARY’’;

(9) in section 403(b) (7 U.S.C. 943(b)), by striking ‘‘Rural

Electrification Administration or of any other agency of the

Department of Agriculture,’’ and inserting ‘‘Secretary,’’;

(10) in section 404 (7 U.S.C. 944), by striking ‘‘the Administrator of the Rural Electrification Administration’’ and inserting

‘‘the Secretary shall designate an official of the Department

of Agriculture who’’;

(11) in sections 406(c) and 410 (7 U.S.C. 946(c) and 950),

by striking ‘‘Administrator of the Rural Electrification Administration’’ each place it appears and inserting ‘‘Secretary’’; (12) in the heading of section 501 (7 U.S.C. 950aa), by

striking ‘‘OF REA ADMINISTRATOR’’; and

(13) except as otherwise provided in this subsection, by

striking ‘‘Administrator’’ each place it appears in such Act

and inserting ‘‘Secretary’’.

(b) MISCELLANEOUS AMENDMENTS.—(1) Section 236(a) of the

Disaster Relief Act of 1970 (7 U.S.C. 912a) is amended by striking

‘‘Rural Electrification Administration’’ and inserting ‘‘Secretary

under the Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.)’’.

(2) Section 505 of the Department of Agriculture Organic Act of 1944 (7 U.S.C. 915) is amended—

(A) by striking ‘‘Rural Electrification Administration’’ and

inserting ‘‘Secretary of Agriculture’’; and (B) by striking ‘‘its’’ and inserting ‘‘the Secretary’s’’. (3) Section 401 of the Rural Electrification Act of 1938 (7

U.S.C. 903 note) is amended in the second paragraph by striking

‘‘Administrator of the Rural Electrification Administration’’ and

inserting ‘‘Secretary of Agriculture’’.

(4) Chapter 1 of subtitle D of title XXIII of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 950aaa

et seq.), relating to Distance Learning and Medical Link Programs,

is amended—

(A) in section 2333—

(i) by striking paragraph (1); and

(ii) by redesignating paragraphs (2) through (11) as

paragraphs (1) through (10), respectively;

(B) in section 2334(h)(2), by striking ‘‘section 2333(3)(F)’’

and inserting ‘‘section 2333(2)(F)’’; and
H. R. 4217—45

(C) by striking ‘‘Administrator’’ each place it appears and

inserting ‘‘Secretary’’.

(5) Section 306(a)(15) of the Consolidated Farm and Rural

Development Act (7 U.S.C. 1926(a)(15)) is amended—

(A) by striking subparagraph (C); and

(B) by redesignating subparagraph (D) as subparagraph

(C).

(6) Section 2322(d) of the Food, Agriculture, Conservation, and

Trade Act of 1990 (7 U.S.C. 1926–1(d)) is amended—

(A) by striking paragraph (2); and

(B) by redesignating paragraph (3) as paragraph (2).

Subtitle D—Food, Nutrition, and Consumer

Services

SEC. 241. UNDER SECRETARY OF AGRICULTURE FOR FOOD, NUTRITION, AND CONSUMER SERVICES.

(a) AUTHORIZATION.—The Secretary is authorized to establish

in the Department the position of Under Secretary of Agriculture

for Food, Nutrition, and Consumer Services.

(b) CONFIRMATION REQUIRED.—If the Secretary establishes the

position of Under Secretary of Agriculture for Food, Nutrition, and

Consumer Services authorized under subsection (a), the Under Secretary shall be appointed by the President, by and with the advice

and consent of the Senate.

(c) FUNCTIONS OF UNDER SECRETARY.—

(1) PRINCIPAL FUNCTIONS.—Upon establishment, the Secretary shall delegate to the Under Secretary of Agriculture

for Food, Nutrition, and Consumer Services those functions

under the jurisdiction of the Department that are related to

food, nutrition, and consumer services (except as provided in

section 261(b)(1)).

(2) ADDITIONAL FUNCTIONS.—The Under Secretary of Agriculture for Food, Nutrition, and Consumer Services shall perform such other functions as may be required by law or

prescribed by the Secretary.

(d) SUCCESSION.—Any official who is serving as Assistant Secretary of Agriculture for Food and Consumer Services on the date

of the enactment of this Act and who was appointed by the President, by and with the advice and consent of the Senate, shall

not be required to be reappointed under subsection (b) to the successor position authorized under subsection (a) if the Secretary establishes the position, and the official occupies the new position, within

180 days after the date of the enactment of this Act (or such

later date set by the Secretary if litigation delays rapid succession).

(e) EXECUTIVE SCHEDULE.—Section 5314 of title 5, United

States Code, is amended by inserting after the item relating to

the Under Secretary of Agriculture for Farm and Foreign Agricultural Services (as added by section 225(e)(2)) the following:

‘‘Under Secretary of Agriculture for Food, Nutrition, and

Consumer Services.’’.
H. R. 4217—46

Subtitle E—Natural Resources and

Environment

SEC. 245. UNDER SECRETARY OF AGRICULTURE FOR NATURAL

RESOURCES AND ENVIRONMENT.

(a) AUTHORIZATION.—The Secretary is authorized to establish

in the Department the position of Under Secretary of Agriculture

for Natural Resources and Environment.

(b) CONFIRMATION REQUIRED.—If the Secretary establishes the

position of Under Secretary of Agriculture for Natural Resources

and Environment authorized under subsection (a), the Under Secretary shall be appointed by the President, by and with the advice

and consent of the Senate.

(c) FUNCTIONS OF UNDER SECRETARY.—

(1) PRINCIPAL FUNCTIONS.—Upon establishment, the Secretary shall delegate to the Under Secretary of Agriculture

for Natural Resources and Environment those functions under

the jurisdiction of the Department that are related to natural

resources and environment (except to the extent those functions

are delegated under section 226).

(2) ADDITIONAL FUNCTIONS.—The Under Secretary of Agriculture for Natural Resources and Environment shall perform

such other functions and duties as may be required by law

or prescribed by the Secretary.

(d) SUCCESSION.—Any official who is serving as Assistant Secretary of Agriculture for Natural Resources and Environment on

the date of the enactment of this Act and who was appointed

by the President, by and with the advice and consent of the Senate,

shall not be required to be reappointed under subsection (b) to

the successor position authorized under subsection (a) if the Secretary establishes the position, and the official occupies the new

position, within 180 days after the date of the enactment of this

Act (or such later date set by the Secretary if litigation delays

rapid succession).

(e) EXECUTIVE SCHEDULE.—Section 5314 of title 5, United

States Code, is amended by inserting after the item relating to

the Under Secretary of Agriculture for Food, Nutrition, and

Consumer Services (as added by section 241(e)) the following:

‘‘Under Secretary of Agriculture for Natural Resources and

Environment.’’.

SEC. 246. NATURAL RESOURCES CONSERVATION SERVICE.

(a) ESTABLISHMENT.—The Secretary is authorized to establish

and maintain within the Department a Natural Resources Conservation Service.

(b) FUNCTIONS.—If the Secretary establishes the Natural

Resources Conservation Service under subsection (a), the Secretary

is authorized to assign to the Service jurisdiction over the following:

(1) The rural environmental conservation program under

title X of the Agricultural Act of 1970 (16 U.S.C. 1501 et

seq.).

(2) The Great Plains Conservation Program under section

16(b) of the Soil Conservation and Domestic Allotment Act

(16 U.S.C. 590p(b)).

(3) The Water Bank Act (16 U.S.C. 1301 et seq.).
H. R. 4217—47

(4) The forestry incentive program under section 4 of the

Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 2103).

(5) Title XII of the Food Security Act of 1985 (16 U.S.C.

3801 et seq.), except subchapter B of chapter 1 of subtitle

D of such title.

(6) Salinity control program under section 202(c) of the

Colorado River Basin Salinity Control Act (43 U.S.C. 1592(c)).

(7) The Farms for the Future Act of 1990 (7 U.S.C. 4201

note).

(8) Such other functions as the Secretary considers appropriate, except functions under subchapter B of chapter 1 of

subtitle D of title XII of the Food Security Act of 1985 (16

U.S.C. 3831–3836) and the agricultural conservation program

under the Soil Conservation and Domestic Allotment Act (16

U.S.C. 590g et seq.).

(c) SPECIAL CONCURRENCE REQUIREMENTS FOR CERTAIN FUNCTIONS.—In carrying out the programs specified in paragraphs (2),

(3), (4), and (6) of subsection (b) and the program under subchapter

C of chapter 1 of subtitle D of title XII of the Food Security

Act of 1985 (16 U.S.C. 3837–3837f), the Secretary shall—

(1) acting on the recommendations of the Natural Resources

Conservation Service, with the concurrence of the Consolidated

Farm Service Agency, issue regulations to carry out such programs;

(2) ensure that the Natural Resources Conservation Service, in establishing policies, priorities, and guidelines for each

such program, does so with the concurrence of the Consolidated

Farm Service Agency at national, State, and local levels; (3) ensure that, in reaching such concurrence at the local

level, the Natural Resources Conservation Service works in

cooperation with Soil and Water Conservation Districts or similar organizations established under State law; (4) ensure that officials of county and area committees established under section 8(b)(5) of the Soil Conservation and

Domestic Allotment Act (16 U.S.C. 590h(b)(5)) meet annually

with officials of such Districts or similar organizations to consider local conservation priorities and guidelines; and (5) take steps to ensure that the concurrence process does

not interfere with the effective delivery of such programs.

(d) USE OF FEDERAL AND NON-FEDERAL EMPLOYEES.— (1) USE AUTHORIZED.—In the implementation of functions

assigned to the Natural Resources Conservation Service, the

Secretary may use interchangeably in local offices of the Service

both Federal employees of the Department and non-Federal

employees of county and area committees established under

section 8(b)(5) of the Soil Conservation and Domestic Allotment

Act (16 U.S.C. 590h(b)(5)).

(2) EXCEPTION.—Notwithstanding paragraph (1), no personnel action (as defined in section 2302(a)(2)(A) of title 5, United

States Code) may be taken with respect to a Federal employee

unless such action is taken by another Federal employee.

(e) SAVINGS PROVISION.—For purposes of subsections (c) and

(d) of this section:

(1) A reference to the ‘‘Natural Resources Conservation

Service’’ includes any other office, agency, or administrative

unit of the Department assigned the functions authorized for

the Natural Resources Conservation Service under this section.
H. R. 4217—48

(2) A reference to the ‘‘Consolidated Farm Service Agency’’

includes any other office, agency, or administrative unit of

the Department assigned the functions authorized for the

Consolidated Farm Service Agency under section 226.

(f) CONFORMING AMENDMENTS.—

(1) SOIL CONSERVATION SERVICE.—Section 5 of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590e) is

repealed.

(2) SOIL AND WATER RESOURCES CONSERVATION.—The Soil

and Water Resources Conservation Act of 1977 (16 U.S.C. 2001)

is amended—

(A) in section 2(2) (16 U.S.C. 2001(2))—

(i) by striking ‘‘created the Soil Conservation Service’’; and

(ii) by striking ‘‘Department of Agriculture which’’

and inserting ‘‘, has ensured that the Department of

Agriculture’’;

(B) in section 3(2) (16 U.S.C. 2002(2)), by striking

‘‘through the Soil Conservation Service’’; and

(C) in section 6(a) (16 U.S.C. 2005(a)), by striking

‘‘Soil Conservation Service’’ and inserting ‘‘Secretary’’.

(3) STATE TECHNICAL COMMITTEES.—Section 1262 of the

Food Security Act of 1985 (16 U.S.C. 3862) is amended by

adding at the end the following new subsection:

‘‘(e) FACA REQUIREMENTS.—The committees established under

section 1261 shall be exempt from the Federal Advisory Committee

Act (5 U.S.C. App.).’’.

SEC. 247. REORGANIZATION OF FOREST SERVICE.

(a) REQUIRED ELEMENTS OF REORGANIZATION PROPOSALS.—

Reorganization proposals that are developed by the Secretary to

carry out the designation by the President of the Forest Service

as a Reinvention Lab pursuant to the National Performance Review,

dated September 1993, shall include proposals for—

(1) reorganizing the Service in a manner that is consistent

with the principles of interdisciplinary planning;

(2) redefining and consolidating the mission and roles of,

and research conducted by, employees of the Service in connection with the National Forest System and State and private

forestry to facilitate interdisciplinary planning and to eliminate

functionalism;

(3) reforming the budget structure of the Service to support

interdisciplinary planning, including reducing the number of

budget line items;

(4) defining new measures of accountability so that Congress may meet the constitutional obligation of Congress to

oversee the Service;

(5) achieving structural and organizational consolidations;

(6) to the extent practicable, sharing office space, equipment, vehicles, and electronic systems with other administrative units of the Department and other Federal field offices,

including proposals for using an on-line system by all administrative units of the Department to maximize administrative

efficiency; and

(7) reorganizing the Service in a manner that will result

in a larger percentage of employees of the Service being retained
H. R. 4217—49

at organizational levels below regional offices, research stations,

and the area office of the Service.

(b) REPORT.—Not later than March 31, 1995, the Secretary

shall submit a report to the Committee on Agriculture of the House

of Representatives and the Committee on Agriculture, Nutrition,

and Forestry of the Senate that describes actions taken to carry

out subsection (a), identifies any disparities in regional funding

patterns, and contains the rationale behind the disparities.

Subtitle F—Research, Education, and

Economics

SEC. 251. UNDER SECRETARY OF AGRICULTURE FOR RESEARCH, EDUCATION, AND ECONOMICS.

(a) AUTHORIZATION.—The Secretary is authorized to establish

in the Department the position of Under Secretary of Agriculture

for Research, Education, and Economics.

(b) CONFIRMATION REQUIRED.—If the Secretary establishes the

position of Under Secretary of Agriculture for Research, Education,

and Economics authorized under subsection (a), the Under Secretary

shall be appointed by the President, by and with the advice and

consent of the Senate.

(c) FUNCTIONS OF UNDER SECRETARY.—

(1) PRINCIPAL FUNCTIONS.—Upon establishment, the Secretary shall delegate to the Under Secretary of Agriculture

for Research, Education, and Economics those functions and

duties under the jurisdiction of the Department that are related

to research, education, and economics.

(2) ADDITIONAL FUNCTIONS.—The Under Secretary of Agriculture for Research, Education, and Economics shall perform

such other functions and duties as may be required by law

or prescribed by the Secretary.

(d) COOPERATIVE STATE RESEARCH, EDUCATION, AND EXTENSION

SERVICE.—

(1) ESTABLISHMENT.—There is established in the Department a Cooperative State Research, Education, and Extension

Service.

(2) FUNCTIONS.—The Secretary shall delegate to the

Cooperative State Research, Education, and Extension Service

functions related to cooperative State research programs and

cooperative extension and education programs that are under

the jurisdiction of the Department.

(3) OFFICER-IN-CHARGE.—If the Secretary establishes the

position of Under Secretary of Agriculture for Research, Education, and Economics, the officer in charge of the Cooperative

State Research, Education, and Extension Service shall report

directly to the Under Secretary.

(e) EXECUTIVE SCHEDULE.—Section 5314 of title 5, United

States Code, is amended by inserting after the item relating to

the Under Secretary of Agriculture for Natural Resources and

Environment (as added by section 245(e)) the following:

‘‘Under Secretary of Agriculture for Research, Education,

and Economics.’’.
H. R. 4217—50

SEC. 252. PROGRAM STAFF.

In making the personnel reductions required under section

213, the Secretary shall reduce the number of Federal research

and education personnel of the Department by a percentage equal

to at least the percentage of overall Department personnel reductions. The Secretary shall achieve such reduction in research and

education personnel in a manner that minimizes duplication

and maximizes coordination between Federal and State research

and extension activities.

Subtitle G—Food Safety

SEC. 261. UNDER SECRETARY OF AGRICULTURE FOR FOOD SAFETY.

(a) ESTABLISHMENT.—There is established in the Department

of Agriculture the position of Under Secretary of Agriculture for

Food Safety. The Under Secretary shall be appointed by the President, by and with the advice and consent of the Senate, from

among individuals with specialized training or significant experience in food safety or public health programs.

(b) FUNCTIONS OF UNDER SECRETARY.—

(1) PRINCIPAL FUNCTIONS.—The Secretary shall delegate

to the Under Secretary of Agriculture for Food Safety those

functions and duties under the jurisdiction of the Department

that are primarily related to food safety.

(2) ADDITIONAL FUNCTIONS.—The Under Secretary of Agriculture for Food Safety shall perform such other functions

and duties as may be required by law or prescribed by the

Secretary.

(c) EXECUTIVE SCHEDULE.—Section 5314 of title 5, United

States Code, is amended by inserting after the item relating to

the Under Secretary of Agriculture for Research, Education, and

Economics (as added by section 251(e)) the following:

‘‘Under Secretary of Agriculture for Food Safety.’’. (d) TECHNICAL AND SCIENTIFIC REVIEW GROUPS.—The Secretary, acting through the Under Secretary for Research, Education,

and Economics, may, without regard to the provisions of title 5,

United States Code, governing appointment in the competitive service, and without regard to the provisions of chapter 51 and subchapter III of chapter 53 of title 5, United States Code, relating

to classification and General Schedule pay rates—

(1) establish such technical and scientific review groups

as are needed to carry out the functions of the Department;

and

(2) appoint and pay the members of the groups, except

that officers and employees of the United States shall not

receive additional compensation for service as a member of

a group.

SEC. 262. CONDITIONS FOR IMPLEMENTATION OF ALTERATIONS IN

THE LEVEL OF ADDITIVES ALLOWED IN ANIMAL DIETS.

(a) CONDITIONS.—The Food and Drug Administration shall not

implement or enforce the final rule described in subsection (b)

to alter the level of selenium allowed to be used as a supplement

in animal diets unless the Commissioner of the Food and Drug

Administration makes a determination that—
H. R. 4217—51

(1) selenium additives are not essential, at levels authorized

in the absence of such final rule, to maintain animal nutrition

and protect animal health;

(2) selenium at such levels is not safe to the animals

consuming the additive;

(3) selenium at such levels is not safe to individuals

consuming edible portions of animals that receive the additive;

(4) selenium at such levels does not achieve its intended

effect of promoting normal growth and reproduction of livestock

and poultry; and

(5) the manufacture and use of selenium at such levels

cannot reasonably be controlled by adherence to current good

manufacturing practice requirements.

(b) FINAL RULE DESCRIBED.—The final rule referred to in subsection (a) is the final rule issued by the Food and Drug Administration and published in the Federal Register on September 13, 1993

(58 Fed. Reg. 47962), in which the Administration stayed 1987

amendments to the selenium food additive regulations, and any

modification of such rule issued after the date of the enactment

of this Act.

Subtitle H—National Appeals Division

SEC. 271. DEFINITIONS.

For purposes of this subtitle:

(1) ADVERSE DECISION.—The term ‘‘adverse decision’’ means

an administrative decision made by an officer, employee, or

committee of an agency that is adverse to a participant. The

term includes a denial of equitable relief by an agency or

the failure of an agency to issue a decision or otherwise act

on the request or right of the participant. The term does not

include a decision over which the Board of Contract Appeals

has jurisdiction. (2) AGENCY.—The term ‘‘agency’’ means any agency of the

Department designated by the Secretary or a successor agency

of the Department, except that the term shall include the

following (and any successor to the following): (A) The Consolidated Farm Service Agency (or other

office, agency, or administrative unit of the Department

assigned the functions authorized for the Consolidated

Farm Service Agency under section 226). (B) The Commodity Credit Corporation, with respect

to domestic programs. (C) The Farmers Home Administration.

(D) The Federal Crop Insurance Corporation.

(E) The Rural Development Administration.

(F) The Natural Resources Conservation Service (or

other office, agency, or administrative unit of the Department assigned the functions authorized for the Natural

Resources Conservation Service under section 246(b)).

(G) A State, county, or area committee established

under section 8(b)(5) of the Soil Conservation and Domestic

Allotment Act (16 U.S.C. 590h(b)(5)).

(3) APPELLANT.—The term ‘‘appellant’’ means a participant

who appeals an adverse decision in accordance with this

subtitle.
H. R. 4217—52

(4) CASE RECORD.—The term ‘‘case record’’ means all the

materials maintained by the Secretary related to an adverse

decision.

(5) DIRECTOR.—The term ‘‘Director’’ means the Director

of the Division.

(6) DIVISION.—The term ‘‘Division’’ means the National

Appeals Division established by this title.

(7) HEARING OFFICER.—The term ‘‘hearing officer’’ means

an individual employed by the Division who hears and determines appeals of adverse decisions by any agency.

(8) IMPLEMENT.—The term ‘‘implement’’ refers to those

actions necessary to effectuate fully and promptly a final determination of the Division not later than 30 calendar days after

the effective date of the final determination.

(9) PARTICIPANT.—The term ‘‘participant’’ shall have the

meaning given that term by the Secretary by regulation.

SEC. 272. NATIONAL APPEALS DIVISION AND DIRECTOR.

(a) ESTABLISHMENT OF DIVISION.—The Secretary shall establish

and maintain an independent National Appeals Division within

the Department to carry out this subtitle.

(b) DIRECTOR.—

(1) APPOINTMENT.—The Division shall be headed by a

Director, appointed by the Secretary from among persons who

have substantial experience in practicing administrative law.

In considering applicants for the position of Director, the Secretary shall consider persons currently employed outside

Government as well as Government employees.

(2) TERM AND REMOVAL.—The Director shall serve for a

6-year term of office, and shall be eligible for reappointment.

The Director shall not be subject to removal during the term

of office, except for cause established in accordance with law.

(3) POSITION CLASSIFICATION.—The position of the Director

may not be a position in the excepted service or filled by

a noncareer appointee.

(c) DIRECTION, CONTROL, AND SUPPORT.—The Director shall

be free from the direction and control of any person other than

the Secretary. The Division shall not receive administrative support

(except on a reimbursable basis) from any agency other than the

Office of the Secretary. The Secretary may not delegate to any

other officer or employee of the Department, other than the Director,

the authority of the Secretary with respect to the Division.

(d) DETERMINATION OF APPEALABILITY OF AGENCY DECISIONS.—

If an officer, employee, or committee of an agency determines that

a decision is not appealable and a participant appeals the decision

to the Director, the Director shall determine whether the decision

is adverse to the individual participant and thus appealable or

is a matter of general applicability and thus not subject to appeal.

The determination of the Director as to whether a decision is

appealable shall be administratively final.

(e) DIVISION PERSONNEL.—The Director shall appoint such hearing officers and other employees as are necessary for the administration of the Division. A hearing officer or other employee of the

Division shall have no duties other than those that are necessary

to carry out this subtitle.
H. R. 4217—53

SEC. 273. TRANSFER OF FUNCTIONS.

There are transferred to the Division all functions exercised

and all administrative appeals pending before the effective date

of this subtitle (including all related functions of any officer or

employee) of or relating to— (1) the National Appeals Division established by section 426(c) of the Agricultural Act of 1949 (7 U.S.C. 1433e(c)) (as

in effect on the day before the date of the enactment of this

Act);

(2) the National Appeals Division established by sub- sections (d) through (g) of section 333B of the Consolidated

Farm and Rural Development Act (7 U.S.C. 1983b) (as in

effect on the day before the date of the enactment of this

Act);

(3) appeals of decisions made by the Federal Crop Insurance

Corporation; and

(4) appeals of decisions made by the Soil Conservation Service (as in effect on the day before the date of the enactment

of this Act).

SEC. 274. NOTICE AND OPPORTUNITY FOR HEARING.

Not later than 10 working days after an adverse decision is

made that affects the participant, the Secretary shall provide the

participant with written notice of such adverse decision and the

rights available to the participant under this subtitle or other

law for the review of such adverse decision.

SEC. 275. INFORMAL HEARINGS.

If an officer, employee, or committee of an agency makes an

adverse decision, the agency shall hold, at the request of the participant, an informal hearing on the decision. With respect to programs

carried out through the Consolidated Farm Service Agency (or

other office, agency, or administrative unit of the Department

assigned to carry out the programs authorized for the Consolidated

Farm Service Agency under section 226), the Secretary shall maintain the informal appeals process applicable to such programs,

as in effect on the date of the enactment of the subtitle. If a

mediation program is available under title V of the Agricultural

Credit Act of 1987 (7 U.S.C. 5101 et seq.) as a part of the informal

hearing process, the participant shall be offered the right to choose

such mediation.

SEC. 276. RIGHT OF PARTICIPANTS TO DIVISION HEARING.

(a) APPEAL TO DIVISION FOR HEARING.—Subject to subsection

(b), a participant shall have the right to appeal an adverse decision

to the Division for an evidentiary hearing by a hearing officer

consistent with section 277.

(b) TIME FOR APPEAL.—To be entitled to a hearing under section

277, a participant shall request the hearing not later than 30

days after the date on which the participant first received notice

of the adverse decision.

SEC. 277. DIVISION HEARINGS.

(a) GENERAL POWERS OF DIRECTOR AND HEARING OFFICERS.—

(1) ACCESS TO CASE RECORD.—The Director and hearing

officer shall have access to the case record of any adverse

decision appealed to the Division for a hearing.
H. R. 4217—54

(2) ADMINISTRATIVE PROCEDURES.—The Director and hearing officer shall have the authority to require the attendance

of witnesses, and the production of evidence, by subpoena and

to administer oaths and affirmations. Except to the extent

required for the disposition of ex parte matters as authorized

by law—

(A) an interested person outside the Division shall

not make or knowingly cause to be made to the Director

or a hearing officer who is or may reasonably be expected

to be involved in the evidentiary hearing or review of

an adverse decision, an ex parte communication (as defined

in section 551(14) of title 5, United States Code) relevant

to the merits of the proceeding;

(B) the Director and such hearing officer shall not

make or knowingly cause to be made to any interested

person outside the Division an ex parte communication

relevant to the merits of the proceeding.

(b) TIME FOR HEARING.—Upon a timely request for a hearing

under section 276(b), an appellant shall have the right to have

a hearing by the Division on the adverse decision within 45 days

after the date of the receipt of the request for the hearing.

(c) LOCATION AND ELEMENTS OF HEARING.—

(1) LOCATION.—A hearing on an adverse decision shall

be held in the State of residence of the appellant or at a

location that is otherwise convenient to the appellant and the

Division.

(2) EVIDENTIARY HEARING.—The evidentiary hearing before

a hearing officer shall be in person, unless the appellant agrees

to a hearing by telephone or by a review of the case record.

The hearing officer shall not be bound by previous findings

of fact by the agency in making a determination.

(3) INFORMATION AT HEARING.—The hearing officer shall

consider information presented at the hearing without regard

to whether the evidence was known to the agency officer,

employee, or committee making the adverse decision at the

time the adverse decision was made. The hearing officer shall

leave the record open after the hearing for a reasonable period

of time to allow the submission of information by the appellant

or the agency after the hearing to the extent necessary to

respond to new facts, information, arguments, or evidence presented or raised by the agency or appellant.

(4) BURDEN OF PROOF.—The appellant shall bear the burden of proving that the adverse decision of the agency was

erroneous.

(d) DETERMINATION NOTICE.—The hearing officer shall issue

a notice of the determination on the appeal not later than 30

days after a hearing or after receipt of the request of the appellant

to waive a hearing, except that the Director may establish an

earlier or later deadline. If the determination is not appealed to

the Director for review under section 278, the notice provided by

the hearing officer shall be considered to be a notice of an administratively final determination.

(e) EFFECTIVE DATE.—The final determination shall be effective

as of the date of filing of an application, the date of the transaction

or event in question, or the date of the original adverse decision,

whichever is applicable.
H. R. 4217—55

SEC. 278. DIRECTOR REVIEW OF DETERMINATIONS OF HEARING

OFFICERS.

(a) REQUESTS FOR DIRECTOR REVIEW.—

(1) TIME FOR REQUEST BY APPELLANT.—Not later than 30

days after the date on which an appellant receives the determination of a hearing officer under section 277, the appellant

shall submit a written request to the Director for review of

the determination in order to be entitled to a review by the

Director of the determination.

(2) TIME FOR REQUEST BY AGENCY HEAD.—Not later than

15 business days after the date on which an agency receives

the determination of a hearing officer under section 277, the

head of the agency may make a written request that the Director review the determination.

(b) DETERMINATION OF DIRECTOR.—The Director shall conduct

a review of the determination of the hearing officer using the

case record, the record from the evidentiary hearing under section

277, the request for review, and such other arguments or information as may be accepted by the Director. Based on such review,

the Director shall issue a final determination notice that upholds,

reverses, or modifies the determination of the hearing officer.

However, if the Director determines that the hearing record is

inadequate, the Director may remand all or a portion of the determination for further proceedings to complete the hearing record

or, at the option of the Director, to hold a new hearing. The

Director shall complete the review and either issue a final determination or remand the determination not later than—

(1) 10 business days after receipt of the request for review,

in the case of a request by the head of an agency for

review; or

(2) 30 business days after receipt of the request for review,

in the case of a request by an appellant for review.

(c) BASIS FOR DETERMINATION.—The determination of the hearing officer and the Director shall be based on information from

the case record, laws applicable to the matter at issue, and

applicable regulations published in the Federal Register and in

effect on the date of the adverse decision or the date on which

the acts that gave rise to the adverse decision occurred, whichever

date is appropriate.

(d) EQUITABLE RELIEF.—Subject to regulations issued by the

Secretary, the Director shall have the authority to grant equitable

relief under this section in the same manner and to the same

extent as such authority is provided to the Secretary under section

326 of the Food and Agriculture Act of 1962 (7 U.S.C. 1339a)

and other laws. Notwithstanding the administrative finality of a

final determination of an appeal by the Division, the Secretary

shall have the authority to grant equitable or other types of relief

to the appellant after an administratively final determination is

issued by the Division.

(e) EFFECTIVE DATE.—A final determination issued by the

Director shall be effective as of the date of filing of an application,

the date of the transaction or event in question, or the date of

the original adverse decision, whichever is applicable.
H. R. 4217—56

SEC. 279. JUDICIAL REVIEW.

A final determination of the Division shall be reviewable and

enforceable by any United States district court of competent jurisdiction in accordance with chapter 7 of title 5, United States Code.

SEC. 280. IMPLEMENTATION OF FINAL DETERMINATIONS OF

DIVISION.

On the return of a case to an agency pursuant to the final

determination of the Division, the head of the agency shall implement the final determination not later than 30 days after the

effective date of the notice of the final determination.

SEC. 281. CONFORMING AMENDMENTS RELATING TO NATIONAL

APPEALS DIVISION.

(a) DECISIONS OF STATE, COUNTY, AND AREA COMMITTEES.—

(1) APPLICATION OF SUBSECTION.—This subsection shall

apply only with respect to functions of the Consolidated Farm

Service Agency or the Commodity Credit Corporation that are

under the jurisdiction of a State, county, or area committee

established under section 8(b)(5) of the Soil Conservation and

Domestic Allotment Act (16 U.S.C. 590h(b)(5)) or an employee

of such a committee.

(2) FINALITY.—Each decision of a State, county, or area committee (or an employee of such a committee) covered by

paragraph (1) that is made in good faith in the absence of

misrepresentation, false statement, fraud, or willful misconduct

shall be final not later than 90 days after the date of filing

of the application for benefits, unless the decision is—

(A) appealed under this subtitle; or

(B) modified by the Administrator of the Consolidated

Farm Service Agency or the Executive Vice President of

the Commodity Credit Corporation.

(3) RECOVERY OF AMOUNTS.—If the decision of the State,

county, or area committee has become final under paragraph

(2), no action may be taken by the Consolidated Farm Service

Agency, the Commodity Credit Corporation, or a State, county,

or area committee to recover amounts found to have been

disbursed as a result of a decision in error unless the participant had reason to believe that the decision was erroneous.

(4) SAVINGS PROVISION.—For purposes of this subsection,

a reference to the ‘‘Consolidated Farm Service Agency’’ includes

any other office, agency, or administrative unit of the Department assigned the functions authorized for the Consolidated

Farm Service Agency under section 226.

(b) AGRICULTURAL STABILIZATION AND CONSERVATION SERV- ICE.—Section 426 of the Agricultural Act of 1949 (7 U.S.C. 1433e)

is repealed.

(c) FARMERS HOME ADMINISTRATION.—Section 333B of the

Consolidated Farm and Rural Development Act (7 U.S.C. 1983b)

is repealed.

SEC. 282. EXPANSION OF ISSUES COVERED BY STATE MEDIATION

PROGRAMS.

(a) EXPANSION OF MEDIATION PROGRAMS.—Section 501 of the

Agricultural Credit Act of 1987 (7 U.S.C. 5101) is amended—

(1) in subsection (a), by striking ‘‘an agricultural loan mediation program’’ and inserting ‘‘a mediation program’’;
H. R. 4217—57

(2) in subsection (b), by striking ‘‘agricultural loan’’; and

(3) by striking subsection (c) and inserting the following

new subsection:

‘‘(c) REQUIREMENTS OF STATE MEDIATION PROGRAMS.—

‘‘(1) ISSUES COVERED.—To be certified as a qualifying State,

the mediation program of the State must provide mediation

services for the persons described in paragraph (2) who are

involved in agricultural loans or agricultural loans and one

or more of the following issues under the jurisdiction of the

Department of Agriculture:

‘‘(A) Wetlands determinations.

‘‘(B) Compliance with farm programs, including conservation programs.

‘‘(C) Agricultural credit.

‘‘(D) Rural water loan programs.

‘‘(E) Grazing on National Forest System lands.

‘‘(F) Pesticides.

‘‘(G) Such other issues as the Secretary considers

appropriate.

‘‘(2) PERSONS ELIGIBLE FOR MEDIATION.—The persons

referred to in paragraph (1) are producers, their creditors (if

applicable), and other persons directly affected by actions of

the Department of Agriculture.

‘‘(3) CERTIFICATION CONDITIONS.—The Secretary shall certify a State as a qualifying State with respect to the issues

proposed to be covered by the mediation program of the State

if the mediation program—

‘‘(A) provides for mediation services that, if decisions

are reached, result in mediated, mutually agreeable decisions between the parties to the mediation;

‘‘(B) is authorized or administered by an agency of

the State government or by the Governor of the State; ‘‘(C) provides for the training of mediators;

‘‘(D) provides that the mediation sessions shall be confidential;

‘‘(E) ensures, in the case of agricultural loans, that

all lenders and borrowers of agricultural loans receive adequate notification of the mediation program; and ‘‘(F) ensures, in the case of other issues covered by

the mediation program, that persons directly affected by

actions of the Department of Agriculture receive adequate

notification of the mediation program.’’. (b) PARTICIPATION OF DEPARTMENT.—Section 503 of such Act

(7 U.S.C. 5103) is amended—

(1) by striking ‘‘agricultural loan’’ each place it appears;

(2) in the matter preceding subparagraph (A) of subsection

(a)(1)—

(A) by inserting ‘‘or agency’’ after ‘‘program’’; and

(B) by striking ‘‘that makes, guarantees, or insures

agricultural loans’’;

(3) in subsection (a)(1)(A)—

(A) by inserting ‘‘or agency’’ after ‘‘such program’’; and

(B) by inserting ‘‘certified under section 501’’ after

‘‘mediation program’’;

(4) in subsection (a)(1)(B)—

(A) by striking ‘‘, effective beginning on the date of

the enactment of this Act,’’; and
H. R. 4217—58

(B) by inserting ‘‘certified under section 501’’ after ‘‘mediation programs’’; and

(5) in subsection (a)(1)(C)—

(A) in clause (i), by striking ‘‘described in’’ and inserting ‘‘certified under’’; and

(B) in clause (ii), by inserting ‘‘if applicable,’’ before

‘‘present’’. (c) REGULATIONS.—Section 504 of such Act (7 U.S.C. 5104)

is amended—

(1) by striking ‘‘Within 150 days after the date of the enactment of this Act, the’’ and inserting ‘‘The’’; and (2) by adding at the end the following new sentence: ‘‘The regulations prescribed by the Secretary shall require qualifying

States to adequately train mediators to address all of the issues

covered by the mediation program of the State.’’.

(d) REPORT.—Section 505 of such Act (7 U.S.C. 5105) is

amended by striking ‘‘1990’’ and inserting ‘‘1998’’. (e) AUTHORIZATION OF APPROPRIATIONS.—Section 506 of such

Act (7 U.S.C. 5106) is amended by striking ‘‘1995’’ and inserting

‘‘2000’’.

(f) CONFORMING AMENDMENTS.—

(1) REFERENCES TO AGRICULTURAL LOANS.—Subtitle A of

title V of such Act is amended—

(A) in sections 502 and 505(1) (7 U.S.C. 5102, 5105(1)),

by striking ‘‘agricultural loan’’ each place it appears; and

(B) in section 505(3) (7 U.S.C. 5105(3)), by striking

‘‘an agricultural loan mediation’’ and inserting ‘‘a

mediation’’.

(2) WAIVER OF FARM CREDIT SYSTEM MEDIATION RIGHTS

BY BORROWERS.—Section 4.14E of the Farm Credit Act of 1971

(12 U.S.C. 2202e) is amended by striking ‘‘agricultural loan’’.

(3) WAIVER OF FMHA MEDIATION RIGHTS BY BORROWERS.—

Section 358 of the Consolidated Farm and Rural Development

Act (7 U.S.C. 2006) is amended by striking ‘‘agricultural loan’’.

SEC. 283. AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriated such sums as may

be necessary to carry out the activities of the Division.

Subtitle I—Miscellaneous Reorganization

Provisions

SEC. 291. SUCCESSORSHIP PROVISIONS RELATING TO BARGAINING

UNITS AND EXCLUSIVE REPRESENTATIVES.

(a) VOLUNTARY AGREEMENT.— (1) IN GENERAL.—If the exercise of the Secretary’s authority

under this title results in changes to an existing bargaining

unit that has been certified under chapter 71 of title 5, United

States Code, the affected parties shall attempt to reach a voluntary agreement on a new bargaining unit and an exclusive

representative for such unit.

(2) CRITERIA.—In carrying out the requirements of this

subsection, the affected parties shall use criteria set forth in—

(A) sections 7103(a)(4), 7111(e), 7111(f)(1), and 7120

of title 5, United States Code, relating to determining an

exclusive representative; and
H. R. 4217—59

(B) section 7112 of title 5, United States Code (disregarding subsections (b)(5) and (d) thereof), relating to

determining appropriate units.

(b) EFFECT OF AN AGREEMENT.—

(1) IN GENERAL.—If the affected parties reach agreement

on the appropriate unit and the exclusive representative for

such unit under subsection (a), the Federal Labor Relations

Authority shall certify the terms of such agreement, subject

to paragraph (2)(A). Nothing in this subsection shall be considered to require the holding of any hearing or election as a

condition for certification.

(2) RESTRICTIONS.—

(A) CONDITIONS REQUIRING NONCERTIFICATION.—The

Federal Labor Relations Authority may not certify the

terms of an agreement under paragraph (1) if—

(i) it determines that any of the criteria referred

to in subsection (a)(2) (disregarding section 7112(a)

of title 5, United States Code) have not been met;

or

(ii) after the Secretary’s exercise of authority and

before certification under this section, a valid election

under section 7111(b) of title 5, United States Code,

is held covering any employees who would be included

in the unit proposed for certification.

(B) TEMPORARY WAIVER OF PROVISION THAT WOULD BAR

AN ELECTION AFTER A COLLECTIVE BARGAINING AGREEMENT

IS REACHED.—Nothing in section 7111(f)(3) of title 5, United

States Code, shall prevent the holding of an election under

section 7111(b) of such title that covers employees within

a unit certified under paragraph (1), or giving effect to

the results of such an election (including a decision not

to be represented by any labor organization), if the election

is held before the end of the 12-month period beginning

on the date such unit is so certified.

(C) CLARIFICATION.—The certification of a unit under

paragraph (1) shall not, for purposes of the last sentence

of section 7111(b) of title 5, United States Code, or section

7111(f)(4) of such title, be treated as if it had occurred

pursuant to an election.

(3) DELEGATION.— (A) IN GENERAL.—The Federal Labor Relations Authority may delegate to any regional director (as referred to

in section 7105(e) of title 5, United States Code) its authority under the preceding provisions of this subsection. (B) REVIEW.—Any action taken by a regional director

under subparagraph (A) shall be subject to review under

the provisions of section 7105(f) of title 5, United States

Code, in the same manner as if such action had been

taken under section 7105(e) of such title, except that in

the case of a decision not to certify, such review shall

be required if application therefor is filed by an affected

party within the time specified in such provisions.

(c) DEFINITION.—For purposes of this section, the term ‘‘affected

party’’ means—

(1) with respect to an exercise of authority by the Secretary

under this title, any labor organization affected thereby; and

(2) the Department of Agriculture.
H. R. 4217—60

SEC. 292. PURCHASE OF AMERICAN-MADE EQUIPMENT AND

PRODUCTS.

(a) SENSE OF CONGRESS.—It is the sense of the Congress that,

to the greatest extent practicable, all equipment and products purchased using funds made available pursuant to this title should

be American-made.

(b) NOTICE REQUIREMENT.—In providing financial assistance

to, or entering into any contract with, any entity using funds

made available pursuant to this title, the Secretary, to the greatest

extent practicable, shall provide to such entity a notice describing

the statement made in subsection (a) by the Congress.

SEC. 293. MISCELLANEOUS CONFORMING AMENDMENTS.

(a) UNITED STATES GRAIN STANDARDS ACT.—The United States

Grain Standards Act (7 U.S.C. 71 et seq.) is amended—

(1) in section 3 (7 U.S.C. 75)—

(A) by inserting ‘‘and’’ at the end of subsection (y);

(B) by striking subsections (z) and (aa); and

(C) by redesignating subsection (bb) as subsection (z);

(2) by striking section 3A (7 U.S.C. 75a);

(3) in section 5(b) (7 U.S.C. 77(b)), by striking ‘‘Service

employees’’ and inserting ‘‘employees of the Secretary’’;

(4) in sections 7(j)(2) and 7A(l)(2) (7 U.S.C. 79(j)(2) and

79a(l)(2)), by striking ‘‘supervision by Service personnel of its

field office personnel’’ in the first sentence of both sections

and inserting ‘‘supervision by the Secretary of the Secretary’s

field office personnel’’;

(5) in section 12(c) (7 U.S.C. 87a(c)), by striking ‘‘or

Administrator’’;

(6) in section 12(d) (7 U.S.C. 87a(d)), by striking ‘‘or the

Administrator’’;

(7) except as otherwise provided in this subsection, by

striking ‘‘Administrator’’ each place it appears and inserting

‘‘Secretary’’; and

(8) except as otherwise provided in this subsection, by

striking ‘‘Service’’ each place it appears and inserting

‘‘Secretary’’.

(b) PACKERS AND STOCKYARDS ACT, 1921.—Section 407 of the

Packers and Stockyards Act, 1921 (7 U.S.C. 228), is amended—

(1) by striking subsection (b);

(2) by redesignating subsections (c), (d), (e), and (f), as

subsections (b), (c), (d), and (e), respectively; and

(3) in subsection (e) (as so redesignated), by striking ‘‘subsection (e)’’ and inserting ‘‘subsection (d)’’.

SEC. 294. REMOVAL OF OBSOLETE ADMINISTRATIVE PROVISIONS.

Section 5316 of title 5, United States Code, is amended—

(1) by striking ‘‘Administrator, Agricultural Marketing

Service, Department of Agriculture.’’;

(2) by striking ‘‘Administrator, Agricultural Research Service, Department of Agriculture.’’;

(3) by striking ‘‘Administrator, Agricultural Stabilization

and Conservation Service, Department of Agriculture.’’;

(4) by striking ‘‘Administrator, Farmers Home

Administration.’’;

(5) by striking ‘‘Administrator, Foreign Agricultural Service, Department of Agriculture.’’;
H. R. 4217—61

(6) by striking ‘‘Administrator, Rural Electrification

Administration, Department of Agriculture.’’;

(7) by striking ‘‘Administrator, Soil Conservation Service,

Department of Agriculture.’’;

(8) by striking ‘‘Chief Forester of the Forest Service, Department of Agriculture.’’;

(9) by striking ‘‘Director of Science and Education, Department of Agriculture.’’;

(10) by striking ‘‘Administrator, Animal and Plant Health

Inspection Service, Department of Agriculture.’’; and

(11) by striking ‘‘Administrator, Federal Grain Inspection

Service, Department of Agriculture.’’.

SEC. 295. PROPOSED CONFORMING AMENDMENTS.

Not later than 180 days after the date of the enactment of

this Act, the Secretary shall submit to Congress recommended

legislation containing additional technical and conforming amendments to Federal laws that are required as a result of the enactment

of this title.

SEC. 296. TERMINATION OF AUTHORITY.

(a) IN GENERAL.—Subject to subsection (b), the authority delegated to the Secretary by this title to reorganize the Department

shall terminate on the date that is 2 years after the date of enactment of this Act.

(b) FUNCTIONS.—Subsection (a) shall not affect—

(1) the authority of the Secretary to continue to carry

out a function that the Secretary performs on the date that

is 2 years after the date of enactment of this Act;

(2) the authority delegated to the Secretary under Reorganization Plan No. 2 of 1953 (5 U.S.C. App.; 7 U.S.C. 2201

note); or

(3) the authority of an agency, office, officer, or employee

of the Department to continue to perform all functions delegated

or assigned to the entity or person as of that termination

date.

TITLE III—MISCELLANEOUS

SEC. 301. POULTRY LABELING.

It is the sense of Congress that—

(1) the United States Department of Agriculture should—

(A) carry out the plans of the Department to hold

public hearings for the purpose of receiving public input

on issues related to the conditions under which poultry

sold in the United States may be labeled ‘‘fresh’’; and

(B) finalize and publish a decision on the issues as

expeditiously as possible after holding the hearings; and

(2) no person serving on the expert advisory committee

established to advise the Secretary of Agriculture on the issues

should stand to profit, or represent any interest that would

stand to profit, from the decision of the Department on the

issues.
H. R. 4217—62

SEC. 302. FIRST AMENDMENT RIGHTS OF EMPLOYEES OF THE UNITED

STATES DEPARTMENT OF AGRICULTURE.

Notwithstanding any other provision of law, no employee of

the United States Department of Agriculture shall be peremptorily

removed, on or after February 15, 1994, from the position of the

employee without an opportunity for a public or nonpublic hearing,

at the option of the employee, because of remarks made during

personal time in opposition to policies, or proposed policies, of

the Department, including policies or proposed policies regarding

homosexuals. Any employee removed on or after February 15, 1994,

without the opportunity for such a hearing shall be reinstated

to the position of the employee pending such a hearing.

SEC. 303. ADJUSTED COST OF THRIFTY FOOD PLAN.

(a) IN GENERAL.—Section 3(o)(11) of the Food Stamp Act of

1977 (7 U.S.C. 2012(o)(11)) is amended by inserting ‘‘and (in the

case of households residing in Alaska) on October 1, 1994,’’ after

‘‘1992,’’.

(b) EFFECTIVE DATE.—The amendment made by subsection (a)

shall be effective beginning on September 30, 1994.

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

(a) OFFICE OF RISK ASSESSMENT AND COST-BENEFIT ANALYSIS.—

The Secretary of Agriculture shall establish in the Department

of Agriculture an Office of Risk Assessment and Cost-Benefit Analysis, which shall be under the direction of a Director appointed

by the Secretary.

(b) FUNCTIONS.—The Director shall ensure that any regulatory

analysis that is conducted under this section includes a risk assessment and cost-benefit analysis that is performed consistently and

uses reasonably obtainable and sound scientific, technical, economic,

and other data.

(1) IN GENERAL.—Effective six months after the date of

enactment of this Act, the Secretary of Agriculture shall publish

in the Federal Register, for each proposed major regulation

the primary purpose of which is to regulate issues of human

health, human safety, or the environment that is promulgated

by the Department after the enactment of this Act, an analysis

with as much specificity as practicable, of— (A) the risk, including the effect of the risk, to human

health, human safety, or the environment, and any combination thereof, addressed by the regulation, including,

where applicable and practicable, the health and safety

risks to persons who are disproportionately exposed or

particularly sensitive;

(B) the costs associated with the implementation of,

and compliance with, the regulation;

(C) where appropriate and meaningful, a comparison

of that risk relative to other similar risks regulated by

the Department or other Federal Agency, resulting from

comparable activities and exposure pathways (such

comparisons should consider relevant distinctions among

risks, such as the voluntary or involuntary nature of risks

and the preventability or nonpreventability of risks); and

(D) the quantitative and qualitative benefits of the

regulation, including the reduction or prevention of risk

expected from the regulation.
H. R. 4217—63

Where such a regulatory analysis is not practicable because of

compelling circumstances, the Director shall provide an explanation

in lieu of conducting an analysis under this section.

(2) EVALUATION.—The regulatory analysis referred to in

paragraph (1) should also contain a statement that the Secretary of Agriculture evaluated—

(A) whether the regulation will advance the purpose

of protecting against the risk referred to in paragraph

(1)(A); and

(B) whether the regulation will produce benefits and

reduce risks to human health, human safety, or the

environment, and any combination thereof, in a cost-effective manner as a result of the implementation of and

compliance with the regulation, by local, State, and Federal

Government and other public and private entities, as estimated in paragraph (1)(B).

(3) This section shall not be construed to amend, modify,

or alter any statute and shall not be subject to judicial review.

This section shall not be construed to grant a cause of action

to any person. The Secretary of Agriculture shall perform the

analyses required in this section in such a manner that does

not delay the promulgation or implementation of regulations

mandated by statute or judicial order.

(c) DEFINITION.—As used in this section, the term ‘‘major regulation’’ means any regulation that the Secretary of Agriculture

estimates is likely to have an annual impact on the economy of

the United States of $100,000,000 in 1994 dollars.

SEC. 305. FAIR AND EQUITABLE TREATMENT OF SOCIALLY DISADVANTAGED PRODUCERS.

(a) FAIR CROP ACREAGE BASES AND FARM PROGRAM PAYMENT

YIELDS.—If the Secretary of Agriculture determines that crop acreage bases or farm program payment yields established for farms

owned or operated by socially disadvantaged producers are not

established in accordance with title V of the Agricultural Act of

1949 (7 U.S.C. 1461 et seq.), the Secretary shall adjust the bases

and yields to conform to the requirements of such title and make

available any appropriate commodity program benefits.

(b) FAIR APPLICATION OF CONSOLIDATED FARM AND RURAL

DEVELOPMENT ACT.—If the Secretary of Agriculture determines

that application of the Consolidated Farm and Rural Development

Act (7 U.S.C. 1921 et seq.) with respect to socially disadvantaged

producers is not consistent with the requirements of such Act,

the Secretary shall make such changes in the administration of

such Act as the Secretary considers necessary to provide for the

fair and equitable treatment of socially disadvantaged producers

under such Act.

(c) REPORT ON TREATMENT OF SOCIALLY DISADVANTAGED

PRODUCERS.—

(1) REPORT REQUIRED.—The Comptroller General of the

United States shall prepare a report to determine—

(A) whether socially disadvantaged producers are

underrepresented on State, county, area, or local committees established under section 8(b)(5) of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)(5))

or local review committees established under section 363
H. R. 4217—64

of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1363)

because of racial, ethnic, or gender prejudice; and

(B) if such underrepresentation exists, whether it

inhibits or interferes with the participation of socially disadvantaged producers in programs of the Department of

Agriculture.

(2) SUBMISSION OF REPORT.—Not later than February 1,

1995, the Comptroller General shall submit the report required

by this subsection to the Committee on Agriculture of the

House of Representatives and the Committee on Agriculture,

Nutrition, and Forestry of the Senate.

(d) DEFINITION.—For purposes of this section, the term ‘‘socially

disadvantaged producer’’ means a producer who is a member of

a group whose members have been subjected to racial, ethnic,

or gender prejudice because of their identity as members of a

group without regard to their individual qualities.

SEC. 306. AVIATION INSPECTIONS.

(a) STUDY OF AIRCRAFT INSPECTIONS.—

(1) INTENT OF STUDY.—The intent of the study required

by this subsection is to examine the cost efficiencies of conducting inspections of aircraft and pilots by one Federal agency

without reducing aircraft, passenger, or pilot safety standards

or lowering mission preparedness.

(2) STUDY REQUIRED.—The Secretary of Agriculture and

the Secretary of Transportation shall jointly conduct a study

of the inspection specifications and procedures by which aircraft

and pilots contracted by the Department are certified to determine the cost efficiencies of eliminating duplicative Department

inspection requirements and transferring some or all inspection

requirements to the Federal Aviation Administration, while

ensuring that neither aircraft, passenger, nor pilot safety is

reduced and that mission preparedness is maintained.

(3) SPECIAL CONSIDERATIONS.—In conducting the study, the

Secretaries shall evaluate current inspection specifications and

procedures mandated by the Department and the Forest Service, taking into consideration the unique requirements and

risks of particular Department and Forest Service missions

that may require special inspection specifications and procedures to ensure the safety of Department and Forest Service

personnel and their contractees.

(4) MAINTENANCE OF STANDARDS AND PREPAREDNESS.—In

making recommendations to transfer inspection authority or

otherwise change Department inspection specifications and

procedures, the Secretaries shall ensure that the implementation of any such recommendations does not lower aircraft or

pilot standards or preparedness for Department or Forest Service missions.

(5) SUBMISSION OF RESULTS.—Not later than 180 days after

the date of the enactment of this Act, the Secretaries shall

submit to Congress the results of the study, including any

recommendations to transfer inspection authority or otherwise

change Department inspection specifications and procedures

and a cost-benefit analysis of such recommendations.

(b) REVIEW OF RECENTLY ADOPTED AIRCRAFT POLICY.—
H. R. 4217—65

(1) REVIEW REQUIRED.—The Secretaries shall review the

policy initiated by the Secretary of Agriculture on July 1, 1994,

to accept Federal Aviation Administration inspections on aircraft and pilots that provide ‘‘airport to airport’’ service for

the Forest Service. The policy is currently being cooperatively

developed by the Department and the Federal Aviation

Administration and is intended to reduce duplicative inspections and to reduce Government costs, while maintaining aircraft, passenger, and pilot safety standards, specifications and

procedures currently required by the Department and the Forest Service.

(2) EXPANSION OF POLICY.—As part of the review, the Secretaries shall examine the feasibility and desirability of applying this policy on a Government-wide basis.

(3) SUBMISSION OF RESULTS.—Not later than one year after

the date of the implementation of the policy, the Secretary

of Agriculture shall submit to Congress the results of the

review, including any recommendations that the Secretary

considers appropriate.

Speaker of the House of Representatives.

Vice President of the United States and

President of the Senate.