H. Res. 559

In the House of Representatives, U. S.,

October 3, 1994.

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:

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.
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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.
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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.
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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
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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.
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‘‘(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’’.
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(3) The first sentence of section 505(a) (7 U.S.C.

1505(a)) is amended by striking ‘‘(hereinafter called the

‘Board’)’’.

(4) Except in section 502, the Act is amended—

(A) by striking ‘‘Board of Directors’’ each

place it appears and inserting ‘‘Board’’;

(B) by striking ‘‘Department of Agriculture’’

each place it appears and inserting ‘‘Department’’;

and

(C) by striking ‘‘Secretary of Agriculture’’ each

place it appears and inserting ‘‘Secretary’’.

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

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

1505(a)) is amended—

(1) by striking ‘‘or Assistant Secretary’’ the first

place it appears; and

(2) by striking ‘‘the Under Secretary or Assistant

Secretary of Agriculture responsible for the farm credit

programs of the Department of Agriculture’’ and inserting ‘‘one additional Under Secretary of Agriculture (as

designated by the Secretary of Agriculture)’’.

SEC. 104. GENERAL POWERS.

Section 506 (7 U.S.C. 1506) is amended—
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(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
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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 nec-
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essary 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 respon-
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sible and which may result in a debt owed the Corporation. The notice shall be given within 3 years of the end

of the insurance period during which the error, omission,

or failure is alleged to have occurred, except that this

time limit shall not apply with respect to errors, omissions, or procedural violations that are willful or intentional. The failure to timely provide the notice required

under this subsection shall relieve the approved insurance provider from the debt owed the Corporation.

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

PRODUCTS.—

‘‘(1) SENSE OF CONGRESS.—It is the sense of Congress that, to the greatest extent practicable, all equipment and products purchased by the Corporation using

funds made available to the Corporation should be

American-made.

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

entity for the purchase of equipment and products to

carry out this title, the Corporation, to the greatest extent practicable, shall provide to the entity a notice describing the statement made in paragraph (1).’’.

SEC. 105. PERSONNEL.

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

insurance committeemen’’;

(2) in subsection (d), by striking ‘‘of this Act,’’ and

all that follows through ‘‘agency’’; and

(3) by adding at the end the following new subsection:

‘‘(g)(1) The Corporation shall establish a managementlevel 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.’’.
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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;
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‘‘(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
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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 en-
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actment 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
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‘‘(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
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‘‘(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
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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,
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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.
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‘‘(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.—
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‘‘(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.
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‘‘(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
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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
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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.
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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
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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
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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
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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
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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).
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‘‘(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 ap-
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proved 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
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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.—
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‘‘(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
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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.
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‘‘(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.
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‘‘(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.
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‘‘(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
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•HRES 559 EH

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 dis-
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approved 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
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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 Corpora-
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tion, 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—
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‘‘(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.
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‘‘(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.
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‘‘(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
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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
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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
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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
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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.
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‘‘(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
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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.—
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‘‘(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.—
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‘‘(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
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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:
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‘‘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.—
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‘‘(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
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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
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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 para-
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graph (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
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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.
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‘‘(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.
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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—
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‘‘(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
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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—
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‘‘(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).’’.
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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 compensa-
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tion 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
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(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
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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.
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(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;
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(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
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(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.
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(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—
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(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.’’.
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(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—
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‘‘(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’’.
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(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’’.
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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 Agri-
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culture 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.—
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(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,
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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
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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:
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(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
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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.
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(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
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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 au-
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thorized 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
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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
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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.—
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(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.
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(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;
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(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
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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 Consoli-
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dated 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.
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(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 func-
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tions 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.
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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
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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 .
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‘‘(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 producerowned and producer-controlled cooperative associations as will be in harmony with the policy toward

cooperative associations set forth in Federal laws
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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.
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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.
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(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
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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
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(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
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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.
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(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).
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(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 Administra-
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tion 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
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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
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(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).
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(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)).
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(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.’’.
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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.
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(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:
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(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.).
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(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 Dis-
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tricts 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 func-
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tions 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
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(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;
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(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 dis-
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parities 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.
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(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.’’.
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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.
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(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.
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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
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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
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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.
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(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
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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 determina-
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tion 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
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(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.
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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
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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.
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(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
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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 deter-
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mination 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
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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.
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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
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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—
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(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.
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‘‘(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
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‘‘(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
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(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—
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(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 exist-
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ing 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 Author-
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ity 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.
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(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—
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(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
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(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—
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(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.’’;
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(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;
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(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.
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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
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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
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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
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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 con-
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form 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
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(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.
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(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
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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
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and desirability of applying this policy on a Governmentwide 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.

Attest:

Clerk.