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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H. Res. 559 Agreed to House (ATH)]

103d CONGRESS
  2d Session
H. RES. 559

   Concurring in the Senate amendment to H.R. 4217 with an amendment.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            October 3, 1994

     Mr. de la Garza submitted the following resolution; which was 
         considered under suspension of the rules and agreed to

_______________________________________________________________________

                               RESOLUTION

 
   Concurring in the Senate amendment to H.R. 4217 with an amendment.

    Resolved, That upon adoption of this resolution, the House shall be 
considered to have taken from the Speaker's table the bill (H.R. 4217) 
to reform the Federal crop insurance program, and for other purposes, 
with the Senate amendment thereto, and to have concurred in the Senate 
amendment with an amendment as follows:
    In lieu of the matter proposed to be inserted by the Senate 
amendment, insert the following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

Sec. 1. Short title; table of contents.
                 TITLE I--FEDERAL CROP INSURANCE REFORM

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

Sec. 201. Short title.
Sec. 202. Purpose.
Sec. 203. Definitions.
             Subtitle A--General Reorganization Authorities

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

Sec. 225. Under Secretary of Agriculture for Farm and Foreign 
                            Agricultural Services.
Sec. 226. Consolidated Farm Service Agency.
Sec. 227. State, county, and area committees.
          Subtitle C--Rural Economic and Community Development

Sec. 231. Under Secretary of Agriculture for Rural Economic and 
                            Community Development.
Sec. 232. Rural Utilities Service.
Sec. 233. Rural Housing and Community Development Service.
Sec. 234. Rural Business and Cooperative Development Service.
Sec. 235. Conforming amendments regarding Rural Electrification 
                            Administration.
           Subtitle D--Food, Nutrition, and Consumer Services

Sec. 241. Under Secretary of Agriculture for Food, Nutrition, and 
                            Consumer Services.
             Subtitle E--Natural Resources and Environment

Sec. 245. Under Secretary of Agriculture for Natural Resources and 
                            Environment.
Sec. 246. Natural Resources Conservation Service.
Sec. 247. Reorganization of Forest Service.
             Subtitle F--Research, Education, and Economics

Sec. 251. Under Secretary of Agriculture for Research, Education, and 
                            Economics.
Sec. 252. Program staff.
                        Subtitle G--Food Safety

Sec. 261. Under Secretary of Agriculture for Food Safety.
Sec. 262. Conditions for implementation of alterations in the level of 
                            additives allowed in animal diets.
                 Subtitle H--National Appeals Division

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

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

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

                 TITLE I--FEDERAL CROP INSURANCE REFORM

SEC. 101. SHORT TITLE; REFERENCES.

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

SEC. 102. DEFINITIONS.

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

``SEC. 502. PURPOSE AND DEFINITIONS.

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

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

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

SEC. 104. GENERAL POWERS.

    Section 506 (7 U.S.C. 1506) is amended--
            (1) by redesignating subsections (j) through (n) as 
        subsections (k) through (o), respectively;
            (2) by inserting after subsection (i) the following new 
        subsection:
    ``(j) Settling Claims.--The Corporation shall have the authority to 
make final and conclusive settlement and adjustment of any claim by or 
against the Corporation or a fiscal officer of the Corporation.'';
            (3) in subsection (l) (as so redesignated)--
                    (A) in the first sentence, by inserting ``, and 
                issue regulations,'' after ``agreements''; and
                    (B) in the second sentence, by striking ``contracts 
                or agreements'' each place it appears and inserting 
                ``contracts, agreements, or regulations'';
            (4) in subsection (n)(1) (as so redesignated), by striking 
        subparagraph (B) and inserting the following new subparagraph:
                    ``(B) disqualify the person from purchasing 
                catastrophic risk protection or receiving noninsured 
                assistance for a period of not to exceed 2 years, or 
                from receiving any other benefit under this title for a 
                period of not to exceed 10 years.'';
            (5) in subsection (o) (as so redesignated)--
                    (A) by redesignating paragraphs (1) through (4) as 
                subparagraphs (A) through (D) and aligning the margins 
                of each subparagraph with the margins of subparagraph 
                (A) of subsection (n)(1) (as redesignated by paragraph 
                (1));
                    (B) by striking ``(o) Actuarial Soundness.--The 
                Corporation'' and inserting the following:
    ``(o) Actuarial Soundness.--
            ``(1) Projected loss ratio as of october 1, 1995.--The 
        Corporation'';
                    (C) in subparagraph (A) (as redesignated by 
                subparagraph (A)), by striking ``from obtaining 
                adequate Federal crop insurance, as determined by the 
                Corporation'' and inserting ``(as defined by the 
                Secretary) from obtaining Federal crop insurance'';
                    (D) in subparagraph (C) (as so redesignated)--
                            (i) by inserting ``, agents, and loss 
                        adjusters'' after ``participating producers''; 
                        and
                            (ii) by inserting ``, agents, and loss 
                        adjusters'' after ``identify insured 
                        producers''; and
                    (E) by adding at the end the following new 
                paragraphs:
            ``(2) Projected loss ratio as of october 1, 1998.--The 
        Corporation shall take such actions, including the 
        establishment of adequate premiums, as are necessary to improve 
        the actuarial soundness of Federal multiperil crop insurance 
        made available under this title to achieve, on and after 
        October 1, 1998, an overall projected loss ratio of not greater 
        than 1.075.
            ``(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--
            (1) in subsection (a), by striking ``, and county crop 
        insurance committeemen'';
            (2) in subsection (d), by striking ``of this Act,'' and all 
        that follows through ``agency''; and
            (3) by adding at the end the following new subsection:
    ``(g)(1) The Corporation shall establish a management-level 
position to be known as the Specialty Crops Coordinator.
    ``(2) The Specialty Crops Coordinator shall have primary 
responsibility for addressing the needs of specialty crop producers, 
and for providing information and advice, in connection with the 
activities of the Corporation to improve and expand the insurance 
program for specialty crops. In carrying out this paragraph, the 
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, 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 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 provider as payment for 
                                operating and administrative expenses 
                                incurred for the delivery of 
                                catastrophic risk protection.
                            ``(ii) Fees in excess of $100.--
                        Notwithstanding the authority granted to the 
                        Secretary under the Federal Crop Insurance 
                        Corporation account provisions of the 
                        Agricultural, Rural Development, Food and Drug 
                        Administration, and Related Agencies 
                        Appropriations Act, 1995, all fees collected 
                        under this subsection in excess of $100 per 
                        producer per county shall be deposited in the 
                        crop insurance fund established under 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 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.
                    ``(B) Minimum price elections.--The Corporation may 
                establish minimum price elections below which levels of 
                insurance shall not be offered.
                    ``(C) Wheat classes and malting barley.--The 
                Corporation shall, as the Corporation determines 
                practicable, offer producers different price elections 
                for classes of wheat and malting barley (including 
                contract prices in the case of malting barley), in 
                addition to the standard price election, that reflect 
                different market prices, as determined by the 
                Corporation. The Corporation shall, as the Corporation 
                determines practicable, offer additional coverage for 
                each class determined under this subparagraph and 
                charge a premium for each class that is actuarially 
                sound.
            ``(7) Fire and hail coverage.--For levels of additional 
        coverage equal to 65 percent or more of the recorded or 
        appraised average yield indemnified at 100 percent of the 
        expected market price, or an equivalent coverage, a producer 
        may elect to delete from the additional coverage any coverage 
        against damage caused by fire and hail if the producer obtains 
        an equivalent or greater dollar amount of coverage for damage 
        caused by fire and hail from an approved insurance provider. On 
        written notice of the election to the company issuing the 
        policy providing additional coverage and submission of evidence 
        of substitute coverage on the commodity insured, the premium of 
        the producer shall be reduced by an amount determined by the 
        Corporation to be actuarially appropriate, taking into account 
        the actuarial value of the remaining coverage provided by the 
        Corporation. In no event shall the producer be given credit for 
        an amount of premium determined to be greater than the 
        actuarial value of the protection against losses caused by fire 
        and hail that is included in the additional coverage for the 
        crop.
            ``(8) State premium subsidies.--The Corporation may enter 
        into an agreement with any State or agency of a State under 
        which the State or agency may pay to the approved insurance 
        provider an additional premium subsidy to further reduce the 
        portion of the premium paid by producers in the State.
            ``(9) Limitations on additional coverage.--The Board may 
        limit the availability of additional coverage under this 
        subsection in any county or area, or on any farm, on the basis 
        of the insurance risk involved. The Board shall not offer 
        additional coverage equal to less than 50 percent of the 
        recorded or appraised average yield indemnified at 100 percent 
        of the expected market price, or an equivalent coverage.
            ``(10) Administrative fee.--
                    ``(A) Fee required.--Except as otherwise provided 
                in this paragraph, if a producer elects to purchase 
                additional coverage for a crop at a level that is less 
                than 65 percent of the recorded or appraised average 
                yield indemnified at 100 percent of the expected market 
                price, or an equivalent coverage, the producer shall 
                pay an administrative fee for the additional coverage. 
                Subsection (b)(5) shall apply in determining the amount 
                and use of the administrative fee or in determining 
                whether to waive the administrative fee.
                    ``(B) Exception.--If a producer elects to purchase 
                additional coverage for a crop equal to 65 percent or 
                more of the recorded or appraised average yield 
                indemnified at 100 percent of the expected market 
                price, or an equivalent coverage, the producer shall 
                not be subject to the administrative fee required by 
                this paragraph or subsection (b)(5). If the producer 
                has already paid the administrative fee for a lower 
                level of coverage for the crop, the administrative fee 
                shall be refunded to the producer unless the refund 
                would reduce to less than $200 the total amount of the 
                administrative fees paid by the producer for 2 or more 
                crops in the same county for which a lower level of 
                coverage is obtained.
                    ``(C) Additional fee.--If a producer elects to 
                purchase additional coverage for a crop equal to or 
                exceeding 65 percent of the recorded or appraised 
                average yield and 100 percent of the expected market 
                price or an equivalent coverage, the producer shall pay 
                an administrative fee of $10 for the coverage. If a 
                producer has already paid an administrative fee for 
                lesser coverage for the crop, the fee for lesser 
                coverage shall be refunded to the producer unless the 
                producer has paid the maximum fee for lesser coverage 
                and refund of the fee will not reduce the amount to be 
                paid below the maximum amount.
                    ``(D) Deposit of fees.--Notwithstanding the 
                authority granted to the Secretary under the Federal 
                Crop Insurance Corporation account provisions of the 
                Agricultural, Rural Development, Food and Drug 
                Administration, and Related Agencies Appropriations 
                Act, 1995, administrative fees collected under 
                subparagraph (B) in excess of $100 per producer per 
                county and under subparagraph (C) shall be deposited in 
                the insurance fund established under section 516(c) to 
                be available for the programs and activities of the 
                Corporation.
    ``(d) Premiums.--
            ``(1) Premiums required.--The Corporation shall fix 
        adequate premiums for all the plans of insurance of the 
        Corporation at such rates as the Board determines are 
        actuarially sufficient to attain an expected loss ratio of not 
        greater than 1.1 through September 30, 1998, and not greater 
        than 1.075 after 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
                            ``(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 offer a 
        plan of insurance to producers that combines both individual 
        yield coverage and area yield coverage at a premium rate 
        determined by the provider under the following conditions:
                    ``(A) The individual yield coverage shall be equal 
                to or greater than catastrophic risk protection as 
                described in subsection (b).
                    ``(B) The combined policy shall include area yield 
                coverage that is offered by the Corporation or similar 
                area coverage, as determined by the Corporation.
                    ``(C) The Corporation shall provide reinsurance on 
                the area yield portion of the combined policy at the 
                request of the provider, except that the provider shall 
                agree to pay to the producer any portion of the area 
                yield and loss indemnity payment received from the 
                Corporation or a commercial reinsurer that exceeds the 
                individual indemnity payment made by the provider to 
                the producer.
                    ``(D) The Corporation shall pay a part of the 
                premium equivalent to--
                            ``(i) the amount authorized under paragraph 
                        (2) (except provisions regarding operating and 
                        administrative expenses); and
                            ``(ii) the amount of operating and 
                        administrative expenses authorized by the 
                        Corporation for the area yield coverage portion 
                        of the combined policy.
                    ``(E) The provider shall provide all underwriting 
                services for the combined policy, including the 
                determination of individual yield coverage premium 
                rates, the terms and conditions of the policy, and the 
                acceptance and classification of applicants into risk 
                categories, subject to subparagraph (F).
                    ``(F) The Corporation shall approve the combined 
                policy unless the Corporation determines that the 
                policy is not actuarially sound or that the interests 
                of producers are not adequately protected.
    ``(f) Eligibility.--
            ``(1) In general.--To participate in catastrophic risk 
        protection coverage under this section, a producer shall submit 
        an application at the local office of the Department or to an 
        approved insurance provider.
            ``(2) Sales closing date.--For coverage under this title, 
        each producer shall purchase crop insurance on or before the 
        sales closing date for the crop by providing the required 
        information and executing the required documents. Subject to 
        the goal of ensuring actuarial soundness for the crop insurance 
        program, the sales closing date shall be established by the 
        Corporation to maximize convenience to producers in obtaining 
        benefits under price and production adjustment programs of the 
        Department. Beginning with the 1995 crop year, the Corporation 
        shall establish, for an insurance policy for each insurable 
        crop that is planted in the spring, a sales closing date that 
        is 30 days earlier than the corresponding sales closing date 
        that was established for the 1994 crop year.
            ``(3) Records and reporting.--To obtain catastrophic risk 
        protection under subsection (b) or additional coverage under 
        subsection (c), a producer shall--
                    ``(A) provide, to the extent required by the 
                Corporation, records acceptable to the Corporation of 
                historical acreage and production of the crops for 
                which the insurance is sought or accept a yield 
                determined by the Corporation; and
                    ``(B) report acreage planted and prevented from 
                planting by the designated acreage reporting date for 
                the crop and location as established by the 
                Corporation.
    ``(g) Yield Determinations.--
            ``(1) In general.--Subject to paragraph (2), the 
        Corporation shall establish crop insurance underwriting rules 
        that ensure that yield coverage, as specified in this 
        subsection, is provided to eligible producers obtaining 
        catastrophic risk protection under subsection (b) or additional 
        coverage under subsection (c).
            ``(2) Yield coverage plans.--
                    ``(A) Actual production history.--Subject to 
                subparagraph (B), the yield for a crop shall be based 
                on the actual production history for the crop, if the 
                crop was produced on the farm without penalty during 
                each of the 4 crop years immediately preceding the crop 
                year for which actual production history is being 
                established, building up to a production data base for 
                each of the 10 consecutive crop years preceding the 
                crop year for which actual production history is being 
                established.
                    ``(B) Assigned yield.--If the producer does not 
                provide satisfactory evidence of the yield of a 
                commodity under subparagraph (A), the producer shall be 
                assigned a yield that is not less than 65 percent of 
                the transitional yield of the producer (adjusted to 
                reflect actual production reflected in the records 
                acceptable to the Corporation for continuous years), as 
                specified in regulations issued by the Corporation 
                based on production history requirements.
                    ``(C) Area yield.--The Corporation may offer a crop 
                insurance plan based on an area yield that allows an 
                insured producer to qualify for an indemnity if a loss 
                has occurred in an area (as specified by the 
                Corporation) in which the farm of the producer is 
                located. Under an area yield plan, an insured producer 
                shall be allowed to select the level of area production 
                at which an indemnity will be paid consistent with such 
                terms and conditions as are established by the 
                Corporation.
                    ``(D) Commodity-by-commodity basis.--A producer may 
                choose between individual yield or area yield coverage 
                or combined coverage (as provided in subsection 
                (e)(4)), if available, on a commodity-by-commodity 
                basis.
            ``(3) Transitional yields for producers of feed or 
        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.
                    ``(B) Yield calculation.--The Corporation shall--
                            ``(i) for the first year of participation 
                        of a producer, provide the assigned yield under 
                        this paragraph to the producer of feed or 
                        forage; and
                            ``(ii) for the second year of participation 
                        of the producer, apply the actual production 
                        history or assigned yield requirement, as 
                        provided in this subsection.
                    ``(C) Termination of authority.--The authority 
                provided by this paragraph shall terminate on the date 
                that is 3 years after the effective date of this 
                paragraph.
    ``(h) Submission of Policies and Materials to Board.--
            ``(1) In general.--In addition to any standard forms or 
        policies that the Board may require be made available to 
        producers under subsection (c), a person may prepare for 
        submission or propose to the Board--
                    ``(A) other crop insurance policies and provisions 
                of policies; and
                    ``(B) rates of premiums for multiple peril crop 
                insurance pertaining to wheat, soybeans, field corn, 
                and any other crops determined by the Secretary.
            ``(2) Submission of policies.--A policy or other material 
        submitted to the Board under this subsection may be prepared 
        without regard to the limitations contained in this title, 
        including the requirements concerning the levels of coverage 
        and rates and the requirement that a price level for each 
        commodity insured must equal the expected market price for the 
        commodity as established by the Board. In the case of such a 
        policy, the payment by the Corporation of a portion of the 
        premium of the policy may not exceed the amount that would 
        otherwise be authorized under subsection (e).
            ``(3) Review and approval by the board.--A policy or other 
        material submitted to the Board under this subsection shall be 
        reviewed by the Board and, if the Board finds that the 
        interests of producers are adequately protected and that any 
        premiums charged to the producers are actuarially appropriate, 
        shall be approved by the Board for reinsurance and for sale to 
        producers as an additional choice at actuarially appropriate 
        rates and under appropriate terms and conditions. The 
        Corporation may enter into more than 1 reinsurance agreement 
        with the approved insurance provider simultaneously to 
        facilitate the offering of the new policies.
            ``(4) Guidelines for submission and review.--The 
        Corporation shall issue regulations to establish guidelines for 
        the submission, and Board review, of policies or other material 
        submitted to the Board under this subsection. At a minimum, the 
        guidelines shall ensure the following:
                    ``(A) A proposal submitted to the Board under this 
                subsection shall be considered as confidential 
                commercial or financial information for purposes of 
                section 552(b)(4) of title 5, United States Code, until 
                approved by the Board. A proposal disapproved by the 
                Board shall remain confidential commercial or financial 
                information.
                    ``(B) The Board shall provide an applicant with the 
                opportunity to present the proposal to the Board in 
                person if the applicant so desires.
                    ``(C) The Board shall provide an applicant with 
                notification of intent to disapprove a proposal not 
                later than 30 days prior to making the disapproval. An 
                applicant that receives the notification may modify the 
                application of the applicant. Any modification shall be 
                considered an original application for purposes of this 
                paragraph.
                    ``(D) Specific guidelines shall prescribe the 
                timing of submission of proposals under this subsection 
                and timely consideration by the Board so that any 
                approved proposal may be made available to all persons 
                reinsured by the Corporation in a manner permitting the 
                persons to participate, if the persons so desire, in 
                offering such a proposal in the first crop year in 
                which the proposal is approved by the Board for 
                reinsurance, premium subsidy, or other support offered 
                by this title.
            ``(5) Required publication.--Any policy, provision of a 
        policy, or rate approved under this subsection shall be 
        published as a notice in the Federal Register and made 
        available to all persons contracting with or reinsured by the 
        Corporation under the terms and conditions of the contract 
        between the Corporation and the person originally submitting 
        the policy or other material.
            ``(6) Pilot cost of production risk protection plan.--
                    ``(A) In general.--The Corporation shall offer, to 
                the extent practicable, a cost of production risk 
                protection plan of insurance that indemnifies producers 
                (including new producers) for insurable losses as 
                provided in this paragraph.
                    ``(B) Pilot basis.--The cost of production risk 
                protection plan shall--
                            ``(i) be established as a pilot project for 
                        each of the 1996 and 1997 crop years; and
                            ``(ii) be carried out in a number of 
                        counties that is determined by the Corporation 
                        to be adequate to provide a comprehensive 
                        evaluation of the feasibility, effectiveness, 
                        and demand among producers for the plan.
                    ``(C) Insurable loss.--An insurable loss shall be 
                incurred by a producer if the gross income of the 
                producer (as determined by the Corporation) is less 
                than an amount determined by the Corporation, as a 
                result of a reduction in yield or price resulting from 
                an insured cause.
                    ``(D) Definition of new producer.--As used in this 
                paragraph, the term `new producer' means a person that 
                has not been actively engaged in farming for a share of 
                the production of the insured crop for more than 2 crop 
                years, as determined by the Secretary.
            ``(7) Additional prevented planting policy coverage.--
                    ``(A) In general.--Beginning with the 1995 crop 
                year, the Corporation shall offer to producers 
                additional prevented planting coverage that insures 
                producers against losses in accordance with this 
                paragraph.
                    ``(B) Approved insurance providers.--Additional 
                prevented planting coverage shall be offered by the 
                Corporation through approved insurance providers.
                    ``(C) Timing of loss.--A crop loss shall be covered 
                by the additional prevented planting coverage if--
                            ``(i) crop insurance policies were obtained 
                        for--
                                    ``(I) the crop year the loss was 
                                experienced; and
                                    ``(II) the crop year immediately 
                                preceding the year of the prevented 
                                planting loss; and
                            ``(ii) the cause of the loss occurred--
                                    ``(I) after the sales closing date 
                                for the crop in the crop year 
                                immediately preceding the loss; and
                                    ``(II) before the sales closing 
                                date for the crop in the year in which 
                                the loss is experienced.
            ``(8) Pilot program of assigned yields for new 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 
        costs and reasonable attorney fees incurred by the approved 
        insurance provider, due to errors or omissions on the part of 
        the Corporation.
    ``(k) Reinsurance.--
            ``(1) In general.--Notwithstanding any other provision of 
        this title, the Corporation shall, to the maximum extent 
        practicable, provide reinsurance to insurers approved by the 
        Corporation that insure producers of any agricultural commodity 
        under 1 or more plans acceptable to the Corporation.
            ``(2) Terms and conditions.--The reinsurance shall be 
        provided on such terms and conditions as the Board may 
        determine to be consistent with subsections (b) and (c) and 
        sound reinsurance principles.
            ``(3) Share of risk.--The reinsurance agreements of the 
        Corporation with the reinsured companies shall require the 
        reinsured companies to bear a sufficient share of any potential 
        loss under the agreement so as to ensure that the reinsured 
        company will sell and service policies of insurance in a sound 
        and prudent manner, taking into consideration the financial 
        condition of the reinsured companies and the availability of 
        private reinsurance.
            ``(4) Rate.--The rate established by the Board to reimburse 
        approved insurance providers and agents for the administrative 
        and operating costs of the providers and agents shall not 
        exceed--
                    ``(A) for the 1997 reinsurance year, 29 percent of 
                the premium used to define loss ratio;
                    ``(B) for the 1998 reinsurance year, 28 percent of 
                the premium used to define loss ratio; and
                    ``(C) for the 1999 reinsurance year, 27.5 percent 
                of the premium used to define loss ratio.
            ``(5) Cost and regulatory reduction.--Consistent with 
        section 118 of the Federal Crop Insurance Reform Act of 1994, 
        and consistent with maintenance of program integrity, 
        prevention of fraud and abuse, the need for program expansion, 
        and improvement of quality of service to customers, the Board 
        shall alter program procedures and administrative requirements 
        in order to reduce the administrative and operating costs of 
        approved insurance providers and agents in an amount that 
        corresponds to any reduction in the reimbursement rate required 
        under paragraph (4) during the 5-year period beginning on the 
        date of enactment of this paragraph.
            ``(6) Agency discretion.--The determination of whether the 
        Corporation is achieving, or has achieved, corresponding 
        administrative cost savings shall not be subject to 
        administrative review, and is wholly committed to agency 
        discretion within the meaning of section 701(a)(2) of title 5, 
        United States Code.
            ``(7) Plan.--The Corporation shall submit to Congress a 
        plan outlining the measures that will be used to achieve the 
        reduction required under paragraph (5). If the Corporation can 
        identify additional cost reduction measures, the Corporation 
        shall describe the measures in the plan.
    ``(l) Optional Coverages.--The Corporation may offer specific risk 
protection programs, including protection against prevented planting, 
wildlife depredation, tree damage and disease, and insect infestation, 
under such terms and conditions as the Board may determine, except that 
no program may be undertaken if insurance for the specific risk 
involved is generally available from private companies.
    ``(m) Research.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        Corporation may conduct research, surveys, pilot programs, and 
        investigations relating to crop insurance and agriculture-
        related risks and losses including insurance on losses 
        involving reduced forage on rangeland caused by drought and by 
        insect infestation, livestock poisoning and disease, 
        destruction of bees due to the use of pesticides, and other 
        unique special risks related to fruits, nuts, vegetables, 
        aquacultural species, forest industry needs (including 
        appreciation), and other agricultural products as determined by 
        the Board.
            ``(2) Exception.--No action may be undertaken with respect 
        to a risk under paragraph (1) if insurance protection against 
        the risk is generally available from private companies.
            ``(3) Evaluation.--After the completion of any pilot 
        program under this subsection, the Corporation shall evaluate 
        the pilot program and submit to the Committee on Agriculture of 
        the House of Representatives and the Committee on Agriculture, 
        Nutrition, and Forestry of the Senate, a report of the 
        operations of the pilot program, including the evaluation by 
        the Corporation of the pilot program and the recommendations of 
        the Corporation with respect to implementing the program on a 
        national basis.''.

SEC. 107. CROP INSURANCE YIELD COVERAGE.

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

SEC. 108. PREEMPTION.

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

SEC. 109. ADVISORY COMMITTEE.

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

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

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

SEC. 110. FUNDING.

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

``SEC. 516. FUNDING.

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

SEC. 111. NONINSURED CROP DISASTER ASSISTANCE.

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

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

    ``(a) Establishment of Program.--
            ``(1) Establishment.--In the case of an eligible crop 
        described in paragraph (2), the Corporation shall establish a 
        noninsured crop disaster assistance program to provide coverage 
        equivalent to the catastrophic risk protection otherwise 
        available under section 508(b).
            ``(2) Eligible crops.--
                    ``(A) In general.--As used in this section, the 
                term `eligible crop' means each commercial crop or 
                other agricultural commodity (except livestock)--
                            ``(i) for which catastrophic risk 
                        protection under section 508(b) is not 
                        available; and
                            ``(ii) that is produced for food or fiber.
                    ``(B) Crops specifically included.--The term 
                `eligible crop' shall include floricultural, ornamental 
                nursery, and Christmas tree crops, turfgrass sod, and 
                industrial crops.
            ``(3) Cause of loss.--To qualify for assistance under this 
        section, the losses of the noninsured commodity shall be due to 
        drought, flood, or other natural disaster, as determined by the 
        Secretary.
    ``(b) Application for Noninsured Crop Disaster Assistance.--
            ``(1) Timely application.--To be eligible for assistance 
        under this section, a producer shall submit an application for 
        noninsured crop disaster assistance at a local office of the 
        Department. The application shall be in such form, contain such 
        information, and be submitted at such time as the Corporation 
        may require.
            ``(2) Records.--A producer shall annually provide records, 
        as required by the Corporation, of previous crop acreage, 
        acreage yields, and production, or the producer shall accept a 
        yield under subsection (e)(3) determined by the Corporation.
            ``(3) Acreage reports.--A producer shall provide reports on 
        acreage planted or prevented from being planted, as required by 
        the Corporation, by the designated acreage reporting date for 
        the crop and location as established by the Corporation.
    ``(c) Loss Requirements.--
            ``(1) Required area loss.--A producer of an eligible crop 
        shall not receive noninsured crop disaster assistance unless 
        the average yield for that crop, or an equivalent measure in 
        the event yield data are not available, in an area falls below 
        65 percent of the expected area yield, as established by the 
        Corporation.
            ``(2) Prevented planting.--Subject to paragraph (1), the 
        Corporation shall make a prevented planting noninsured crop 
        disaster assistance payment if the producer is prevented from 
        planting more than 35 percent of the acreage intended for the 
        eligible crop because of drought, flood, or other natural 
        disaster, as determined by the Secretary.
            ``(3) Reduced yields.--Subject to paragraph (1), the 
        Corporation shall make a reduced yield noninsured crop disaster 
        assistance payment to a producer if the total quantity of the 
        eligible crop that the producer is able to harvest on any farm 
        is, because of drought, flood, or other natural disaster as 
        determined by the Secretary, less than 50 percent of the 
        expected individual yield for the crop, as determined by the 
        Corporation, factored for the interest of the producer for the 
        crop.
    ``(d) Payment.--The Corporation shall make available to a producer 
eligible for noninsured assistance under this section a 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--
                    ``(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--
                            ``(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--
            ``(A) the neglect or malfeasance of the producer;
            ``(B) 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
            ``(C) the failure of the producer to follow good farming 
        practices, as determined by the Corporation.''.

SEC. 112. PAYMENT AND INCOME LIMITATIONS.

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

SEC. 113. PRODUCER ELIGIBILITY.

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

``SEC. 520. PRODUCER ELIGIBILITY.

    ``Except as otherwise provided in this title, a producer shall not 
be denied insurance under this title if--
            ``(1) for purposes of catastrophic risk protection 
        coverage, the producer is a `person' (as defined by the 
        Secretary); and
            ``(2) for purposes of any other plan of insurance, the 
        producer is 18 years of age and has a bona fide insurable 
        interest in a crop as an owner-operator, landlord, tenant, or 
        sharecropper.''.

SEC. 114. INELIGIBILITY FOR CATASTROPHIC RISK AND NONINSURED ASSISTANCE 
              PAYMENTS.

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

``SEC. 521. INELIGIBILITY FOR CATASTROPHIC RISK AND NONINSURED 
              ASSISTANCE PAYMENTS.

    ``If the Secretary determines that a person has knowingly adopted a 
material scheme or device to obtain catastrophic risk, additional 
coverage, or noninsured assistance benefits under this title to which 
the person is not entitled, has evaded this title, or has acted with 
the purposes of evading this title, the person shall be ineligible to 
receive all benefits applicable to the crop year for which the scheme 
or device was adopted. The authority provided by this section shall be 
in addition to, and shall not supplant, the authority provided by 
section 506(n).''.

SEC. 115. ELIMINATION OF GENDER REFERENCES.

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

SEC. 116. PREVENTED PLANTING.

    (a) In General.--Effective for the 1994 crop year, a producer 
described in subsection (b) shall receive compensation under the 
prevented planting coverage policy provision described in subsection 
(b)(1) by--
            (1) obtaining from the Secretary of Agriculture the 
        applicable amount that is payable under the conserving use 
        program described in subsection (b)(4); and
            (2) obtaining from the Federal Crop Insurance 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;
            (3) had a reasonable expectation of planting a crop on the 
        prevented planting acreage for the 1994 crop year; and
            (4) participates in a conserving use program established 
        for the 1994 crop of wheat, feed grains, upland cotton, or rice 
        established under section 107B(c)(1)(E), 105B(c)(1)(E), 
        103B(c)(1)(D), or 101B(c)(1)(D), respectively, of the 
        Agricultural Act of 1949 (7 U.S.C. 1445b-3a(c)(1)(E), 
        1444f(c)(1)(E), 1444-2(c)(1)(D), or 1441-2(c)(1)(D)).
    (c) Oilseed Prevented Planting Payments.--
            (1) In general.--Effective for the 1994 crop year, a 
        producer of a crop of oilseeds (as defined in section 205(a) of 
        the Agricultural Act of 1949 (7 U.S.C. 1446f(a))) shall receive 
        a prevented planting payment for the crop if the requirements 
        of paragraphs (1), (2), and (3) of subsection (b) are 
        satisfied.
            (2) Source of payment.--The total amount of payments 
        required under this subsection shall be made by the Federal 
        Crop Insurance Corporation.
    (d) Payment.--A payment under this section may not be made before 
October 1, 1994.

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

    Not later than 180 days after the date of enactment of this Act and 
at the end of each of the 2 1-year periods thereafter, the Federal Crop 
Insurance Corporation shall submit a report to Congress containing a 
plan to implement a sound program for producer education regarding the 
crop insurance program and for the dissemination of crop insurance 
information to producers, as required by section 508(a)(5) of the 
Federal Crop Insurance Act (as amended by section 106).

SEC. 118. CROP INSURANCE PROVIDER EVALUATION.

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

SEC. 119. CONFORMING AMENDMENTS.

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

``SEC. 427. CROP INSURANCE REQUIREMENT.

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

``SEC. 371. CROP INSURANCE REQUIREMENT.

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

SEC. 120. EFFECTIVE DATE.

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

           TITLE II--DEPARTMENT OF AGRICULTURE REORGANIZATION

SEC. 201. SHORT TITLE.

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

SEC. 202. PURPOSE.

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

SEC. 203. DEFINITIONS.

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

             Subtitle A--General Reorganization Authorities

SEC. 211. TRANSFER OF DEPARTMENT FUNCTIONS TO SECRETARY OF AGRICULTURE.

    (a) Transfer of Functions.--Except as provided in subsection (b), 
there are transferred to the Secretary of Agriculture all functions of 
all agencies, offices, officers, and employees of the Department that 
are not already vested in the Secretary on the date of the enactment of 
this Act.
    (b) Exceptions.--Subsection (a) shall not apply to the following 
functions:
            (1) Functions vested by subchapter II of chapter 5 of title 
        5, United States Code, in administrative law judges employed by 
        the Department.
            (2) Functions vested by the Inspector General Act of 1978 
        (5 U.S.C. App.) in the Inspector General of the Department.
            (3) Functions vested by chapter 9 of title 31, United 
        States Code, in the Chief Financial Officer of the Department.
            (4) Functions vested in the corporations of the Department 
        or the boards of directors and officers of such corporations.
            (5) Functions vested in the Alternative Agricultural 
        Research and Commercialization Board by the Alternative 
        Agricultural Research and Commercialization Act of 1990 (7 
        U.S.C. 5901 et seq.).

SEC. 212. AUTHORITY OF SECRETARY TO DELEGATE TRANSFERRED FUNCTIONS.

    (a) Delegation of Authority.--
            (1) Delegation authorized.--Subject to paragraph (2), the 
        Secretary may delegate to any agency, office, officer, or 
        employee of the Department the authority to perform any 
        function transferred to the Secretary under section 211(a) or 
        any other function vested in the Secretary as of the date of 
        the enactment of this Act. The authority provided in the 
        preceding sentence includes the authority to establish, 
        consolidate, alter, or discontinue any agency, office, or other 
        administrative unit of the Department.
            (2) Condition on authority.--The delegation authority 
        provided by paragraph (1) shall be subject to--
                    (A) sections 232, 251(d), 273, and 304 and 
                subsections (a) and (b)(1) of section 261;
                    (B) sections 502 and 503 of the Agricultural Trade 
                Act of 1978 (7 U.S.C. 5692 and 5693); and
                    (C) section 8(b)(5) of the Soil Conservation and 
                Domestic Allotment Act (16 U.S.C. 590h(b)(5)).
    (b) Cost-Benefit Analysis Required for Name Change.--
            (1) Analysis required.--Except as provided in paragraph 
        (2), the Secretary shall conduct a cost-benefit analysis before 
        changing the name of any agency, office, division, or other 
        unit of the Department to ensure that the benefits to be 
        derived from changing the name of the agency, office, division, 
        or other unit outweigh the expense of executing the name 
        change.
            (2) Exception.--Paragraph (1) shall not apply with respect 
        to any name change required or authorized by this title.
    (c) Public Comment on Proposed Reorganization.--To the extent that 
the implementation of the authority provided to the Secretary by this 
title to reorganize the Department involves the creation of new 
agencies or offices within the Department or the delegation of major 
functions or major groups of functions to any agency or office of the 
Department (or the officers or employees of such agency or office), the 
Secretary shall, to the extent considered practicable by the 
Secretary--
            (1) give appropriate advance public notice of the proposed 
        reorganization action or delegation; and
            (2) afford appropriate opportunity for interested parties 
        to comment on the proposed reorganization action or delegation.
    (d) Interagency Transfer of Records, Property, Personnel, and 
Funds.--
            (1) Related transfers.--Subject to paragraph (2), as part 
        of the transfer or delegation of a function of the Department 
        made or authorized by this title, the Secretary may transfer 
        within the Department--
                    (A) any of the records, property, or personnel 
                affected by the transfer or delegation of the function; 
                and
                    (B) unexpended balances (available or to be made 
                available for use in connection with the transferred or 
                delegated function) of appropriations, allocations, or 
                other funds of the Department.
            (2) Applicable law relating to funds transfer.--Section 
        1531 of title 31, United States Code, shall apply to any 
        transfer of funds under paragraph (1).
    (e) Exhaustion of Administrative Appeals.--Notwithstanding any 
other provision of law, a person shall exhaust all administrative 
appeal procedures established by the Secretary or required by law 
before the person may bring an action in a court of competent 
jurisdiction against--
            (1) the Secretary;
            (2) the Department; or
            (3) an agency, office, officer, or employee of the 
        Department.

SEC. 213. REDUCTIONS IN NUMBER OF DEPARTMENT PERSONNEL.

    (a) Definitions.--For purposes of this section:
            (1) Headquarters offices.--The term ``headquarters 
        offices'', with respect to agencies, offices, or other 
        administrative units of the Department, means the offices, 
        functions, and employee positions that are located or 
        performed--
                    (A) in Washington, District of Columbia; or
                    (B) in such other locations as are identified by 
                the Secretary for purposes of this section.
            (2) Field structure.--The term ``field structure'' means 
        the offices, functions, and employee positions of all agencies, 
        offices, or other administrative units of the Department, other 
        than the headquarters offices, except that the term does not 
        include State, county, or area committees established under 
        section 8(b)(5) of the Soil Conservation and Domestic Allotment 
        Act (16 U.S.C. 590h(b)(5)). The term includes the physical and 
        geographic locations of such agencies, offices, or other 
        administrative units.
    (b) Number of Reductions Required.--The Secretary shall achieve 
Federal employee reductions of at least 7,500 staff years within the 
Department by the end of fiscal year 1999. Reductions in the number of 
full-time equivalent positions within the Department achieved under 
section 5 of the Federal Workforce Restructuring Act of 1994 (Public 
Law 103-226; 108 Stat. 115; 5 U.S.C. 3101 note) shall be counted toward 
the employee reductions required under this section.
    (c) Emphasis on Headquarters Offices Reductions.--In achieving the 
employee reductions required by subsection (b), the Secretary shall 
pursue a goal so that the percentage of the total number of employee 
staff years reduced in headquarters offices is at least twice the 
percentage of the total number of employee staff years reduced in the 
field structure.
    (d) Schedule.--The personnel reductions in headquarters offices and 
in the field structure should be accomplished concurrently in a manner 
determined by the Secretary.

SEC. 214. CONSOLIDATION OF HEADQUARTERS OFFICES.

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

SEC. 215. COMBINATION OF FIELD OFFICES.

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

SEC. 216. IMPROVEMENT OF INFORMATION SHARING.

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

SEC. 217. REPORTS BY THE SECRETARY.

    (a) In General.--Subject to subsection (b), notwithstanding any 
other provision of law, the Secretary may, but shall not be required 
to, prepare and submit any report solely to the Committee on 
Agriculture of the House of Representatives and the Committee on 
Agriculture, Nutrition, and Forestry of the Senate.
    (b) Limitation.--For each fiscal year, the Secretary may not 
prepare and submit more than 30 reports referred to in subsection (a).
    (c) Selection of Reports.--In consultation with the Committee on 
Agriculture of the House of Representatives and the 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).''.
    (e) Repeal of Superseded Provisions Regarding Assistant 
Secretaries.--The following provisions of law are repealed:
            (1) Section 2 of Reorganization Plan No. 2 of 1953 (5 
        U.S.C. App; 7 U.S.C. 2201 note).
            (2) Section 2 of the Act entitled ``An Act to enlarge the 
        powers and duties of the Department of Agriculture and to 
        create an Executive Department to be known as the Department of 
        Agriculture.'', approved February 9, 1889 (7 U.S.C. 2212).
            (3) The first paragraph designated ``Office of the 
        Secretary:'' under the heading ``DEPARTMENT OF AGRICULTURE'' of 
        the Act entitled ``An Act making appropriations for the 
        Department of Agriculture for the fiscal year ending June 
        thirtieth, nineteen hundred and seven.'', approved June 30, 
        1906 (34 Stat. 670; 7 U.S.C. 2212).
            (4) Section 604(a) of the Rural Development Act of 1972 (7 
        U.S.C. 2212a).
            (5) Section 2 of Public Law 94-561 (7 U.S.C. 2212b).
            (6) Section 8(a) of Public Law 97-325 (7 U.S.C. 2212c).
            (7) Section 1413(d) of the National Agricultural Research, 
        Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3128(d)).

SEC. 219. PAY INCREASES PROHIBITED.

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

           Subtitle B--Farm and Foreign Agricultural Services

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

    (a) Authorization.--The Secretary is authorized to establish in the 
Department the position of Under Secretary of Agriculture for Farm and 
Foreign Agricultural Services.
    (b) Confirmation Required.--If the Secretary establishes the 
position of Under Secretary of Agriculture for Farm and Foreign 
Agricultural Services authorized under subsection (a), the Under 
Secretary shall be appointed by the President, by and with the advice 
and consent of the Senate.
    (c) Functions of Under Secretary.--
            (1) Principal functions.--Upon establishment, the Secretary 
        shall delegate to the Under Secretary of Agriculture for Farm 
        and Foreign Agricultural Services those functions under the 
        jurisdiction of the Department that are related to farm and 
        foreign agricultural services.
            (2) Additional functions.--The Under Secretary of 
        Agriculture for Farm and Foreign Agricultural Services shall 
        perform such other functions as may be required by law or 
        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 Secretary establishes 
the position, and the official occupies the new position, within 180 
days after the date of the enactment of this Act (or such later date 
set by the Secretary if litigation delays rapid succession).
    (e) Conforming Amendments.--
            (1) Existing position.--Section 501 of the Agricultural 
        Trade Act of 1978 (7 U.S.C. 5691), relating to the Under 
        Secretary of Agriculture for International Affairs and 
        Commodity Programs, is repealed.
            (2) Executive schedule.--Section 5314 of title 5, United 
        States Code, is amended by striking ``Under Secretary of 
        Agriculture for International Affairs and Commodity Programs.'' 
        and inserting ``Under Secretary of Agriculture for Farm and 
        Foreign Agricultural Services.''.

SEC. 226. CONSOLIDATED FARM SERVICE AGENCY.

    (a) Establishment.--The Secretary is authorized to establish and 
maintain in the Department a Consolidated Farm Service Agency.
    (b) Functions of Consolidated Farm Service Agency.--If the 
Secretary establishes the Consolidated Farm Service Agency under 
subsection (a), the Secretary is authorized to assign to the Agency 
jurisdiction over the following functions:
            (1) Agricultural price and income support programs, 
        production adjustment programs, and related programs.
            (2) General supervision of the Federal Crop Insurance 
        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;
            (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 Service Agency 
with county offices of the Natural Resources Conservation Service in 
order to--
            (1) maximize savings from shared equipment, office space, 
        and administrative support;
            (2) simplify paperwork and regulatory requirements;
            (3) provide improved services to agricultural producers and 
        landowners affected by programs administered by the Agency and 
        the Service; and
            (4) achieve computer compatibility between the Agency and 
        the Service to maximize efficiency and savings.
    (g) Savings Provision.--For purposes of subsections (c) through (f) 
of this section:
            (1) A reference to the ``Consolidated Farm Service Agency'' 
        includes any other office, agency, or administrative unit of 
        the Department assigned the functions authorized for the 
        Consolidated Farm Service Agency under this section.
            (2) A reference to the ``Natural Resources Conservation 
        Service'' includes any other office, agency, or administrative 
        unit of the Department assigned the functions authorized for 
        the Natural Resources Conservation Service under section 
        246(b).
    (h) Conforming Amendment.--Section 331(a) of the Consolidated Farm 
and Rural Development Act (7 U.S.C. 1981(a)) is amended by striking 
``assets to the Farmers Home Administration'' and all that follows 
through the period at the end of the subsection and inserting ``assets 
to such officers or agencies of the Department of Agriculture as the 
Secretary considers appropriate.''.

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

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

          Subtitle C--Rural Economic and Community Development

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

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

SEC. 232. RURAL UTILITIES SERVICE.

    (a) Establishment Required.--The Secretary shall establish and 
maintain within the Department the Rural Utilities Service and assign 
to the Service such functions as the Secretary considers appropriate.
    (b) Administrator.--
            (1) Appointment.--The Rural Utilities Service shall be 
        headed by an Administrator who shall be appointed by the 
        President, by and with the advice and consent of the Senate.
            (2) Succession.--Any official who is serving as 
        Administrator of the Rural Electrification Administration on 
        the date of the enactment of this Act and who was appointed by 
        the President, by and with the advice and consent of the 
        Senate--
                    (A) may be considered to be serving in the 
                successor position established under paragraph (1); and
                    (B) shall not be required to be reappointed to that 
                position by reason of the enactment of this Act.
            (3) Executive schedule.--Section 5315 of title 5, United 
        States Code, is amended by adding at the end the following:
            ``Administrator, Rural Utilities Service, Department of 
        Agriculture.''.
    (c) Functions.--The Secretary shall carry out through the Rural 
Utilities Service the following functions that are under the 
jurisdiction of the Department:
            (1) Electric and telephone loan programs and water and 
        waste facility activities authorized by law, including--
                    (A) the Rural Electrification Act of 1936 (7 U.S.C. 
                901 et seq.); and
                    (B) section 2322 of the Food, Agriculture, 
                Conservation, and Trade Act of 1990 (7 U.S.C. 1926-1); 
                and
            (2) Water and waste facility programs and activities 
        authorized by law, including--
                    (A) sections 306, 306A, 306B, and 306C, the 
                provisions of sections 309 and 309A relating to assets, 
                terms, and conditions of water and sewer programs, 
                section 310B(b)(2), and the amendment made by section 
                342 of the Consolidated Farm and Rural Development Act 
                (7 U.S.C. 1926, 1926a, 1926b, 1926c, 1929, 1929a, 
                1932(b)(2), and 1013a); and
                    (B) section 2324 of the Food, Agriculture, 
                Conservation, and Trade Act of 1990 (7 U.S.C. 1926 
                note).

SEC. 233. RURAL HOUSING AND COMMUNITY DEVELOPMENT SERVICE.

    (a) Establishment Authorized.--Notwithstanding any other provision 
of law, the Secretary is authorized to establish and maintain within 
the Department the Rural Housing and Community Development Service and 
to assign to the Service such functions as the Secretary considers 
appropriate.
    (b) Functions.--If the Secretary establishes the Rural Housing and 
Community Development Service under subsection (a), the Secretary is 
authorized to assign to the Service jurisdiction over the following:
            (1) Programs and activities under title V of the Housing 
        Act of 1949 (42 U.S.C. 1471 et seq.).
            (2) Programs and activities authorized under section 
        310B(i) of the Consolidated Farm and Rural Development Act (7 
        U.S.C. 1932(i)) and related provisions of law.
            (3) Programs and activities that relate to rural community 
        lending programs, including programs authorized by sections 365 
        through 369 of the Consolidated Farm and Rural Development Act 
        (7 U.S.C. 2008-2008d).

SEC. 234. RURAL BUSINESS AND COOPERATIVE DEVELOPMENT 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, 
        Conservation, and Trade Act of 1990 (7 U.S.C. 5901 et seq.).
            (3) Sections 306(a)(1) and 310B of the Consolidated Farm 
        and Rural Development Act (7 U.S.C. 1926(a)(1) and 1932).
            (4) Section 1323 of the Food Security Act of 1985 (Public 
        Law 99-198; 7 U.S.C. 1932 note).
            (5) The Act of July 2, 1926 (44 Stat. 802, chapter 725; 7 
        U.S.C. 451 et seq.).

SEC. 235. CONFORMING AMENDMENTS REGARDING RURAL ELECTRIFICATION 
              ADMINISTRATION.

    (a) Amendments to Rural Electrification Act of 1936.--The Rural 
Electrification Act of 1936 (7 U.S.C. 901 et seq.) is amended--
            (1) by striking the first section (7 U.S.C. 901) and 
        inserting the following:

``SECTION 1. SHORT TITLE.

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

           Subtitle D--Food, Nutrition, and Consumer Services

SEC. 241. UNDER SECRETARY OF AGRICULTURE FOR FOOD, NUTRITION, AND 
              CONSUMER SERVICES.

    (a) Authorization.--The Secretary is authorized to establish in the 
Department the position of Under Secretary of Agriculture for Food, 
Nutrition, and Consumer Services.
    (b) Confirmation Required.--If the Secretary establishes the 
position of Under Secretary of Agriculture for Food, Nutrition, and 
Consumer Services authorized under subsection (a), the Under Secretary 
shall be appointed by the President, by and with the advice and consent 
of the Senate.
    (c) Functions of Under Secretary.--
            (1) Principal functions.--Upon establishment, the Secretary 
        shall delegate to the Under Secretary of Agriculture for Food, 
        Nutrition, and Consumer Services those functions under the 
        jurisdiction of the Department that are related to food, 
        nutrition, and consumer services (except as provided in section 
        261(b)(1)).
            (2) Additional functions.--The Under Secretary of 
        Agriculture for Food, Nutrition, and Consumer Services shall 
        perform such other functions as may be required by law or 
        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.''.

             Subtitle E--Natural Resources and Environment

SEC. 245. UNDER SECRETARY OF AGRICULTURE FOR NATURAL RESOURCES AND 
              ENVIRONMENT.

    (a) Authorization.--The Secretary is authorized to establish in the 
Department the position of Under Secretary of Agriculture for Natural 
Resources and Environment.
    (b) Confirmation Required.--If the Secretary establishes the 
position of Under Secretary of Agriculture for Natural Resources and 
Environment authorized under subsection (a), the Under Secretary shall 
be appointed by the President, by and with the advice and consent of 
the Senate.
    (c) Functions of Under Secretary.--
            (1) Principal functions.--Upon establishment, the Secretary 
        shall delegate to the Under Secretary of Agriculture for 
        Natural Resources and Environment those functions under the 
        jurisdiction of the Department that are related to natural 
        resources and environment (except to the extent those functions 
        are delegated under section 226).
            (2) Additional functions.--The Under Secretary of 
        Agriculture for Natural Resources and Environment shall perform 
        such other functions and duties as may be required by law or 
        prescribed by the Secretary.
    (d) Succession.--Any official who is serving as Assistant Secretary 
of Agriculture for Natural Resources and Environment on the date of the 
enactment of this Act and who was appointed by the President, by and 
with the advice and consent of the Senate, shall not be required to be 
reappointed under subsection (b) to the successor position authorized 
under subsection (a) if the Secretary establishes the position, and the 
official occupies the new position, within 180 days after the date of 
the enactment of this Act (or such later date set by the Secretary if 
litigation delays rapid succession).
    (e) Executive Schedule.--Section 5314 of title 5, United States 
Code, is amended by inserting after the item relating to the Under 
Secretary of Agriculture for Food, Nutrition, and Consumer Services (as 
added by section 241(e)) the following:
            ``Under Secretary of Agriculture for Natural Resources and 
        Environment.''.

SEC. 246. NATURAL RESOURCES CONSERVATION SERVICE.

    (a) Establishment.--The Secretary is authorized to establish and 
maintain within the Department a Natural Resources Conservation 
Service.
    (b) Functions.--If the Secretary establishes the Natural Resources 
Conservation Service under subsection (a), the Secretary is authorized 
to assign to the Service jurisdiction over the following:
            (1) The rural environmental conservation program under 
        title X of the Agricultural Act of 1970 (16 U.S.C. 1501 et 
        seq.).
            (2) The Great Plains Conservation Program under section 
        16(b) of the Soil Conservation and Domestic Allotment Act (16 
        U.S.C. 590p(b)).
            (3) The Water Bank Act (16 U.S.C. 1301 et seq.);
            (4) The forestry incentive program under section 4 of the 
        Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 2103).
            (5) Title XII of the Food Security Act of 1985 (16 U.S.C. 
        3801 et seq.), except subchapter B of chapter 1 of subtitle D 
        of such title.
            (6) Salinity control program under section 202(c) of the 
        Colorado River Basin Salinity Control Act (43 U.S.C. 1592(c)).
            (7) The Farms for the Future Act of 1990 (7 U.S.C. 4201 
        note).
            (8) Such other functions as the Secretary considers 
        appropriate, except functions under subchapter B of chapter 1 
        of subtitle D of title XII of the Food Security Act of 1985 (16 
        U.S.C. 3831-3836) and the agricultural conservation program 
        under the Soil Conservation and Domestic Allotment Act (16 
        U.S.C. 590g et seq.).
    (c) Special Concurrence Requirements for Certain Functions.--In 
carrying out the programs specified in paragraphs (2), (3), (4), and 
(6) of subsection (b) and the program under subchapter C of chapter 1 
of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 
3837-3837f), the Secretary shall--
            (1) acting on the recommendations of the Natural Resources 
        Conservation Service, with the concurrence of the Consolidated 
        Farm Service Agency, issue regulations to carry out such 
        programs;
            (2) ensure that the Natural Resources Conservation Service, 
        in establishing policies, priorities, and guidelines for each 
        such program, does so with the concurrence of the Consolidated 
        Farm Service Agency at national, State, and local levels;
            (3) ensure that, in reaching such concurrence at the local 
        level, the Natural Resources Conservation Service works in 
        cooperation with Soil and Water Conservation Districts or 
        similar organizations established under State law;
            (4) ensure that officials of county and area committees 
        established under section 8(b)(5) of the Soil Conservation and 
        Domestic Allotment Act (16 U.S.C. 590h(b)(5)) meet annually 
        with officials of such Districts or similar organizations to 
        consider local conservation priorities and guidelines; and
            (5) take steps to ensure that the concurrence process does 
        not interfere with the effective delivery of such programs.
    (d) Use of Federal and Non-Federal Employees.--
            (1) Use authorized.--In the implementation of functions 
        assigned to the Natural Resources Conservation Service, the 
        Secretary may use interchangeably in local offices of the 
        Service both Federal employees of the Department and non-
        Federal employees of county and area committees established 
        under section 8(b)(5) of the Soil Conservation and Domestic 
        Allotment Act (16 U.S.C. 590h(b)(5)).
            (2) Exception.--Notwithstanding paragraph (1), no personnel 
        action (as defined in section 2302(a)(2)(A) of title 5, United 
        States Code) may be taken with respect to a Federal employee 
        unless such action is taken by another Federal employee.
    (e) Savings Provision.--For purposes of subsections (c) and (d) of 
this section:
            (1) A reference to the ``Natural Resources Conservation 
        Service'' includes any other office, agency, or administrative 
        unit of the Department assigned the functions authorized for 
        the Natural Resources Conservation Service under this section.
            (2) A reference to the ``Consolidated Farm Service Agency'' 
        includes any other office, agency, or administrative unit of 
        the Department assigned the functions authorized for the 
        Consolidated Farm Service Agency under section 226.
    (f) Conforming Amendments.--
            (1) Soil conservation service.--Section 5 of the Soil 
        Conservation and Domestic Allotment Act (16 U.S.C. 590e) is 
        repealed.
            (2) Soil and water resources conservation.--The Soil and 
        Water Resources Conservation Act of 1977 (16 U.S.C. 2001) is 
        amended--
                    (A) in section 2(2) (16 U.S.C. 2001(2))--
                            (i) by striking ``created the Soil 
                        Conservation Service''; and
                            (ii) by striking ``Department of 
                        Agriculture which'' and inserting ``, has 
                        ensured that the Department of Agriculture'';
                    (B) in section 3(2) (16 U.S.C. 2002(2)), by 
                striking ``through the Soil Conservation Service''; and
                    (C) in section 6(a) (16 U.S.C. 2005(a)), by 
                striking ``Soil Conservation Service'' and inserting 
                ``Secretary''.
            (3) State technical committees.--Section 1262 of the Food 
        Security Act of 1985 (16 U.S.C. 3862) is amended by adding at 
        the end the following new subsection:
    ``(e) FACA requirements.--The committees established under section 
1261 shall be exempt from the Federal Advisory Committee Act (5 U.S.C. 
App.).''.

SEC. 247. REORGANIZATION OF FOREST SERVICE.

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

             Subtitle F--Research, Education, and Economics

SEC. 251. UNDER SECRETARY OF AGRICULTURE FOR RESEARCH, EDUCATION, AND 
              ECONOMICS.

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

SEC. 252. PROGRAM STAFF.

    In making the personnel reductions required under section 213, the 
Secretary shall reduce the number of Federal research and education 
personnel of the Department by a percentage equal to at least the 
percentage of overall Department personnel reductions. The Secretary 
shall achieve such reduction in research and education personnel in a 
manner that minimizes duplication 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--
            (1) selenium additives are not essential, at levels 
        authorized in the absence of such final rule, to maintain 
        animal nutrition and protect animal health;
            (2) selenium at such levels is not safe to the animals 
        consuming the additive;
            (3) selenium at such levels is not safe to individuals 
        consuming edible portions of animals that receive the additive;
            (4) selenium at such levels does not achieve its intended 
        effect of promoting normal growth and reproduction of livestock 
        and poultry; and
            (5) the manufacture and use of selenium at such levels 
        cannot reasonably be controlled by adherence to current good 
        manufacturing practice requirements.
    (b) Final Rule Described.--The final rule referred to in subsection 
(a) is the final rule issued by the Food and Drug Administration and 
published in the Federal Register on September 13, 1993 (58 Fed. Reg. 
47962), in which the Administration stayed 1987 amendments to the 
selenium food additive regulations, and any modification of such rule 
issued after the date of the enactment of this Act.

                 Subtitle H--National Appeals Division

SEC. 271. DEFINITIONS.

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

SEC. 272. NATIONAL APPEALS DIVISION AND DIRECTOR.

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

SEC. 273. TRANSFER OF FUNCTIONS.

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

SEC. 274. NOTICE AND OPPORTUNITY FOR HEARING.

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

SEC. 275. INFORMAL HEARINGS.

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

SEC. 276. RIGHT OF PARTICIPANTS TO DIVISION HEARING.

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

SEC. 277. DIVISION HEARINGS.

    (a) General Powers of Director and Hearing Officers.--
            (1) Access to case record.--The Director and hearing 
        officer shall have access to the case record of any adverse 
        decision appealed to the Division for a hearing.
            (2) Administrative procedures.--The Director and hearing 
        officer shall have the authority to require the attendance of 
        witnesses, and the production of evidence, by subpoena and to 
        administer oaths and affirmations. Except to the extent 
        required for the disposition of ex parte matters as authorized 
        by law--
                    (A) an interested person outside the Division shall 
                not make or knowingly cause to be made to the Director 
                or a hearing officer who is or may reasonably be 
                expected to be involved in the evidentiary hearing or 
                review of an adverse decision, an ex parte 
                communication (as defined in section 551(14) of title 
                5, United States Code) relevant to the merits of the 
                proceeding;
                    (B) the Director and such hearing officer shall not 
                make or knowingly cause to be made to any interested 
                person outside the Division an ex parte communication 
                relevant to the merits of the proceeding.
    (b) Time for Hearing.--Upon a timely request for a hearing under 
section 276(b), an appellant shall have the right to have a hearing by 
the Division on the adverse decision within 45 days after the date of 
the receipt of the request for the hearing.
    (c) Location and Elements of Hearing.--
            (1) Location.--A hearing on an adverse decision shall be 
        held in the State of residence of the appellant or at a 
        location that is otherwise convenient to the appellant and the 
        Division.
            (2) Evidentiary hearing.--The evidentiary hearing before a 
        hearing officer shall be in person, unless the appellant agrees 
        to a hearing by telephone or by a review of the case record. 
        The hearing officer shall not be bound by previous findings of 
        fact by the agency in making a determination.
            (3) Information at hearing.--The hearing officer shall 
        consider information presented at the hearing without regard to 
        whether the evidence was known to the agency officer, employee, 
        or committee making the adverse decision at the time the 
        adverse decision was made. The hearing officer shall leave the 
        record open after the hearing for a reasonable period of time 
        to allow the submission of information by the appellant or the 
        agency after the hearing to the extent necessary to respond to 
        new facts, information, arguments, or evidence presented or 
        raised by the agency or appellant.
            (4) Burden of proof.--The appellant shall bear the burden 
        of proving that the adverse decision of the agency was 
        erroneous.
    (d) Determination Notice.--The hearing officer shall issue a notice 
of the determination on the appeal not later than 30 days after a 
hearing or after receipt of the request of the appellant to waive a 
hearing, except that the Director may establish an earlier or later 
deadline. If the determination is not appealed to the Director for 
review under section 278, the notice provided by the hearing officer 
shall be considered to be a notice of an administratively final 
determination.
    (e) Effective Date.--The final determination shall be effective as 
of the date of filing of an application, the date of the transaction or 
event in question, or the date of the original adverse decision, 
whichever is applicable.

SEC. 278. DIRECTOR REVIEW OF DETERMINATIONS OF HEARING 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.

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 Service.--Section 
426 of the Agricultural Act of 1949 (7 U.S.C. 1433e) is repealed.
    (c) Farmers Home Administration.--Section 333B of the Consolidated 
Farm and Rural Development Act (7 U.S.C. 1983b) is repealed.

SEC. 282. EXPANSION OF ISSUES COVERED BY STATE MEDIATION PROGRAMS.

    (a) Expansion of Mediation Programs.--Section 501 of the 
Agricultural Credit Act of 1987 (7 U.S.C. 5101) is amended--
            (1) in subsection (a), by striking ``an agricultural loan 
        mediation program'' and inserting ``a mediation program'';
            (2) in subsection (b), by striking ``agricultural loan''; 
        and
            (3) by striking subsection (c) and inserting the following 
        new subsection:
    ``(c) Requirements of State Mediation Programs.--
            ``(1) Issues covered.--To be certified as a qualifying 
        State, the mediation program of the State must provide 
        mediation services for the persons described in paragraph (2) 
        who are involved in agricultural loans or agricultural loans 
        and one or more of the following issues under the jurisdiction 
        of the Department of Agriculture:
                    ``(A) Wetlands determinations.
                    ``(B) Compliance with farm programs, including 
                conservation programs.
                    ``(C) Agricultural credit.
                    ``(D) Rural water loan programs.
                    ``(E) Grazing on National Forest System lands.
                    ``(F) Pesticides.
                    ``(G) Such other issues as the Secretary considers 
                appropriate.
            ``(2) Persons eligible for mediation.--The persons referred 
        to in paragraph (1) are producers, their creditors (if 
        applicable), and other persons directly affected by actions of 
        the Department of Agriculture.
            ``(3) Certification conditions.--The Secretary shall 
        certify a State as a qualifying State with respect to the 
        issues proposed to be covered by the mediation program of the 
        State if the mediation program--
                    ``(A) provides for mediation services that, if 
                decisions are reached, result in mediated, mutually 
                agreeable decisions between the parties to the 
                mediation;
                    ``(B) is authorized or administered by an agency of 
                the State government or by the Governor of the State;
                    ``(C) provides for the training of mediators;
                    ``(D) provides that the mediation sessions shall be 
                confidential;
                    ``(E) ensures, in the case of agricultural loans, 
                that all lenders and borrowers of agricultural loans 
                receive adequate notification of the mediation program; 
                and
                    ``(F) ensures, in the case of other issues covered 
                by the mediation program, that persons directly 
                affected by actions of the Department of Agriculture 
                receive adequate notification of the mediation 
                program.''.
    (b) Participation of Department.--Section 503 of such Act (7 U.S.C. 
5103) is amended--
            (1) by striking ``agricultural loan'' each place it 
        appears;
            (2) in the matter preceding subparagraph (A) of subsection 
        (a)(1)--
                    (A) by inserting ``or agency'' after ``program''; 
                and
                    (B) by striking ``that makes, guarantees, or 
                insures agricultural loans'';
            (3) in subsection (a)(1)(A)--
                    (A) by inserting ``or agency'' after ``such 
                program''; and
                    (B) by inserting ``certified under section 501'' 
                after ``mediation program'';
            (4) in subsection (a)(1)(B)--
                    (A) by striking ``, effective beginning on the date 
                of the enactment of this Act,''; and
                    (B) by inserting ``certified under section 501'' 
                after ``mediation programs''; and
            (5) in subsection (a)(1)(C)--
                    (A) in clause (i), by striking ``described in'' and 
                inserting ``certified under''; and
                    (B) in clause (ii), by inserting ``if applicable,'' 
                before ``present''.
    (c) Regulations.--Section 504 of such Act (7 U.S.C. 5104) is 
amended--
            (1) by striking ``Within 150 days after the date of the 
        enactment of this Act, the'' and inserting ``The''; and
            (2) by adding at the end the following new sentence: ``The 
        regulations prescribed by the Secretary shall require 
        qualifying States to adequately train mediators to address all 
        of the issues covered by the mediation program of the State.''.
    (d) Report.--Section 505 of such Act (7 U.S.C. 5105) is 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
                    (B) section 7112 of title 5, United States Code 
                (disregarding subsections (b)(5) and (d) thereof), 
                relating to determining appropriate units.
    (b) Effect of an Agreement.--
            (1) In general.--If the affected parties reach agreement on 
        the appropriate unit and the exclusive representative for such 
        unit under subsection (a), the Federal Labor Relations 
        Authority shall certify the terms of such agreement, subject to 
        paragraph (2)(A). Nothing in this subsection shall be 
        considered to require the holding of any hearing or election as 
        a condition for certification.
            (2) Restrictions.--
                    (A) Conditions requiring noncertification.--The 
                Federal Labor Relations Authority may not certify the 
                terms of an agreement under paragraph (1) if--
                            (i) it determines that any of the criteria 
                        referred to in subsection (a)(2) (disregarding 
                        section 7112(a) of title 5, United States Code) 
                        have not been met; or
                            (ii) after the Secretary's exercise of 
                        authority and before certification under this 
                        section, a valid election under section 7111(b) 
                        of title 5, United States Code, is held 
                        covering any employees who would be included in 
                        the unit proposed for certification.
                    (B) Temporary waiver of provision that would bar an 
                election after a collective bargaining agreement is 
                reached.--Nothing in section 7111(f)(3) of title 5, 
                United States Code, shall prevent the holding of an 
                election under section 7111(b) of such title that 
                covers employees within a unit certified under 
                paragraph (1), or giving effect to the results of such 
                an election (including a decision not to be represented 
                by any labor organization), if the election is held 
                before the end of the 12-month period beginning on the 
                date such unit is so certified.
                    (C) Clarification.--The certification of a unit 
                under paragraph (1) shall not, for purposes of the last 
                sentence of section 7111(b) of title 5, United States 
                Code, or section 7111(f)(4) of such title, be treated 
                as if it had occurred pursuant to an election.
            (3) Delegation.--
                    (A) In general.--The Federal Labor Relations 
                Authority may delegate to any regional director (as 
                referred to in section 7105(e) of title 5, United 
                States Code) its authority under the preceding 
                provisions of this subsection.
                    (B) Review.--Any action taken by a regional 
                director under subparagraph (A) shall be subject to 
                review under the provisions of section 7105(f) of title 
                5, United States Code, in the same manner as if such 
                action had been taken under section 7105(e) of such 
                title, except that in the case of a decision not to 
                certify, such review shall be required if application 
                therefor is filed by an affected party within the time 
                specified in such provisions.
    (c) Definition.--For purposes of this section, the term ``affected 
party'' means--
            (1) with respect to an exercise of authority by the 
        Secretary under this title, any labor organization affected 
        thereby; and
            (2) the Department of Agriculture.

SEC. 292. PURCHASE OF AMERICAN-MADE EQUIPMENT AND 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.'';
            (6) by striking ``Administrator, Rural Electrification 
        Administration, Department of Agriculture.'';
            (7) by striking ``Administrator, Soil Conservation Service, 
        Department of Agriculture.'';
            (8) by striking ``Chief Forester of the Forest Service, 
        Department of Agriculture.'';
            (9) by striking ``Director of Science and Education, 
        Department of Agriculture.'';
            (10) by striking ``Administrator, Animal and Plant Health 
        Inspection Service, Department of Agriculture.''; and
            (11) by striking ``Administrator, Federal Grain Inspection 
        Service, Department of Agriculture.''.

SEC. 295. PROPOSED CONFORMING AMENDMENTS.

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

SEC. 296. TERMINATION OF AUTHORITY.

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

                        TITLE III--MISCELLANEOUS

SEC. 301. POULTRY LABELING.

    It is the sense of Congress that--
            (1) the United States Department of Agriculture should--
                    (A) carry out the plans of the Department to hold 
                public hearings for the purpose of receiving public 
                input on issues related to the conditions under which 
                poultry sold in the United States may be labeled 
                ``fresh''; and
                    (B) finalize and publish a decision on the issues 
                as expeditiously as possible after holding the 
                hearings; and
            (2) no person serving on the expert advisory committee 
        established to advise the Secretary of Agriculture on the 
        issues should stand to profit, or represent any interest that 
        would stand to profit, from the decision of the Department on 
        the issues.

SEC. 302. FIRST AMENDMENT RIGHTS OF EMPLOYEES OF THE UNITED STATES 
              DEPARTMENT OF AGRICULTURE.

    Notwithstanding any other provision of law, no employee of the 
United States Department of Agriculture shall be peremptorily removed, 
on or after February 15, 1994, from the position of the employee 
without an opportunity for a public or nonpublic hearing, at the option 
of the employee, because of remarks made during personal time in 
opposition to policies, or proposed policies, of the Department, 
including policies or proposed policies regarding homosexuals. Any 
employee removed on or after February 15, 1994, without the opportunity 
for such a hearing shall be reinstated to the position of the employee 
pending such a hearing.

SEC. 303. ADJUSTED COST OF THRIFTY FOOD PLAN.

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

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

    (a) Office of Risk Assessment and Cost-Benefit Analysis.--The 
Secretary of Agriculture shall establish in the Department of 
Agriculture an Office of Risk Assessment and Cost-Benefit Analysis, 
which shall be under the direction of a Director appointed by the 
Secretary.
    (b) Functions.--The Director shall ensure that any regulatory 
analysis that is conducted under this section includes a risk 
assessment and cost-benefit analysis that is performed consistently and 
uses reasonably obtainable and sound scientific, technical, economic, 
and other data.
            (1) In general.--Effective six months after the date of 
        enactment of this Act, the Secretary of Agriculture shall 
        publish in the Federal Register, for each proposed major 
        regulation the primary purpose of which is to regulate issues 
        of human health, human safety, or the environment that is 
        promulgated by the Department after the enactment of this Act, 
        an analysis with as much specificity as practicable, of--
                    (A) the risk, including the effect of the risk, to 
                human health, human safety, or the environment, and any 
                combination thereof, addressed by the regulation, 
                including, where applicable and practicable, the health 
                and safety risks to persons who are disproportionately 
                exposed or particularly sensitive;
                    (B) the costs associated with the implementation 
                of, and compliance with, the regulation;
                    (C) where appropriate and meaningful, a comparison 
                of that risk relative to other similar risks regulated 
                by the Department or other Federal Agency, resulting 
                from comparable activities and exposure pathways (such 
                comparisons should consider relevant distinctions among 
                risks, such as the voluntary or involuntary nature of 
                risks and the preventability or nonpreventability of 
                risks); and
                    (D) the quantitative and qualitative benefits of 
                the regulation, including the reduction or prevention 
                of risk expected from the regulation.
Where such a regulatory analysis is not practicable because of 
compelling circumstances, the Director shall provide an explanation in 
lieu of conducting an analysis under this section.
            (2) Evaluation.--The regulatory analysis referred to in 
        paragraph (1) should also contain a statement that the 
        Secretary of Agriculture evaluated--
                    (A) whether the regulation will advance the purpose 
                of protecting against the risk referred to in paragraph 
                (1)(A); and
                    (B) whether the regulation will produce benefits 
                and reduce risks to human health, human safety, or the 
                environment, and any combination thereof, in a cost-
                effective manner as a result of the implementation of 
                and compliance with the regulation, by local, State, 
                and Federal Government and other public and private 
                entities, as estimated in paragraph (1)(B).
            (3) This section shall not be construed to amend, modify, 
        or alter any statute and shall not be subject to judicial 
        review. This section shall not be construed to grant a cause of 
        action to any person. The Secretary of Agriculture shall 
        perform the analyses required in this section in such a manner 
        that does not delay the promulgation or implementation of 
        regulations mandated by statute or judicial order.
    (c) Definition.--As used in this section, the term ``major 
regulation'' means any regulation that the Secretary of Agriculture 
estimates is likely to have an annual impact on the economy of the 
United States of $100,000,000 in 1994 dollars.

SEC. 305. FAIR AND EQUITABLE TREATMENT OF SOCIALLY DISADVANTAGED 
              PRODUCERS.

    (a) Fair Crop Acreage Bases and Farm Program Payment Yields.--If 
the Secretary of Agriculture determines that crop acreage bases or farm 
program payment yields established for farms owned or operated by 
socially disadvantaged producers are not established in accordance with 
title V of the Agricultural Act of 1949 (7 U.S.C. 1461 et seq.), the 
Secretary shall adjust the bases and yields to conform to the 
requirements of such title and make available any appropriate commodity 
program benefits.
    (b) Fair Application of Consolidated Farm and Rural Development 
Act.--If the Secretary of Agriculture determines that application of 
the Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et seq.) 
with respect to socially disadvantaged producers is not consistent with 
the requirements of such Act, the Secretary shall make such changes in 
the administration of such Act as the Secretary considers necessary to 
provide for the fair and equitable treatment of socially disadvantaged 
producers under such Act.
    (c) Report on Treatment of Socially Disadvantaged Producers.--
            (1) Report required.--The Comptroller General of the United 
        States shall prepare a report to determine--
                    (A) whether socially disadvantaged producers are 
                underrepresented on State, county, area, or local 
                committees established under section 8(b)(5) of the 
                Soil Conservation and Domestic Allotment Act (16 U.S.C. 
                590h(b)(5)) or local review committees established 
                under section 363 of the Agricultural Adjustment Act of 
                1938 (7 U.S.C. 1363) because of racial, ethnic, or 
                gender prejudice; and
                    (B) if such underrepresentation exists, whether it 
                inhibits or interferes with the participation of 
                socially disadvantaged producers in programs of the 
                Department of Agriculture.
            (2) Submission of report.--Not later than February 1, 1995, 
        the Comptroller General shall submit the report required by 
        this subsection to the Committee on Agriculture of the House of 
        Representatives and the Committee on Agriculture, Nutrition, 
        and Forestry of the Senate.
    (d) Definition.--For purposes of this section, the term ``socially 
disadvantaged producer'' means a producer who is a member of a group 
whose members have been subjected to racial, ethnic, or gender 
prejudice because of their identity as members of a group without 
regard to their individual qualities.

SEC. 306. AVIATION INSPECTIONS.

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