104TH CONGRESS

2D SESSION S. 1541

AN ACT

To extend, reform, and improve agricultural commodity,

trade, conservation, and other programs, and for other

purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘Agricultural Reform and Improvement Act of 1996’’.
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1 (b) TABLE OF CONTENTS.—The table of contents of

2 this Act is as follows:

Sec. 1. Short title; table of contents.

TITLE I—AGRICULTURAL MARKET TRANSITION PROGRAM

Sec. 101. Short title.

Sec. 102. Definitions.

Sec. 103. Production flexibility contracts.

Sec. 104. Nonrecourse marketing assistance loans and loan deficiency payments.

Sec. 105. Payment limitations.

Sec. 106. Peanut program.

Sec. 107. Sugar program.

Sec. 108. Administration.

Sec. 109. Suspension and repeal of permanent authorities.

Sec. 110. Effect of amendments.

TITLE II—AGRICULTURAL TRADE

Subtitle A—Amendments to Agricultural Trade Development and Assistance

Act of 1954 and Related Statutes

Sec. 201. Food aid to developing countries.

Sec. 202. Trade and development assistance.

Sec. 203. Agreements regarding eligible countries and private entities.

Sec. 204. Terms and conditions of sales.

Sec. 205. Use of local currency payment.

Sec. 206. Value-added foods.

Sec. 207. Eligible organizations.

Sec. 208. Generation and use of foreign currencies.

Sec. 209. General levels of assistance under Public Law 480.

Sec. 210. Food aid consultative group.

Sec. 211. Support of nongovernmental organizations.

Sec. 212. Commodity determinations.

Sec. 213. General provisions.

Sec. 214. Agreements.

Sec. 215. Use of commodity credit corporation.

Sec. 216. Administrative provisions.

Sec. 217. Expiration date.

Sec. 218. Regulations.

Sec. 219. Independent evaluation of programs.

Sec. 220. Authorization of appropriations.

Sec. 221. Coordination of foreign assistance programs.

Sec. 222. Micronutrient fortification pilot program.

Sec. 223. Use of certain local currency.

Sec. 224. Levels of assistance under farmer-to-farmer program.

Sec. 225. Food security commodity reserve.

Sec. 226. Protein byproducts derived from alcohol fuel production.

Sec. 227. Food for progress program.

Sec. 228. Use of foreign currency proceeds from export sales financing.

Sec. 229. Stimulation of foreign production.

Subtitle B—Amendments to Agricultural Trade Act of 1978
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Sec. 241. Agricultural export promotion strategy.

Sec. 242. Export credits.

Sec. 243. Market promotion program.

Sec. 244. Export enhancement program.

Sec. 245. Arrival certification.

Sec. 246. Compliance.

Sec. 247. Regulations.

Sec. 248. Trade compensation and assistance programs.

Sec. 249. Foreign agricultural service.

Sec. 250. Reports.

Subtitle C—Miscellaneous

Sec. 251. Reporting requirements relating to tobacco.

Sec. 252. Triggered export enhancement.

Sec. 253. Disposition of commodities to prevent waste.

Sec. 254. Direct sales of dairy products.

Sec. 255. Export sales of dairy products.

Sec. 256. Debt-for-health-and-protection swap.

Sec. 257. Policy on expansion of international markets.

Sec. 258. Policy on maintenance and development of export markets.

Sec. 259. Policy on trade liberalization.

Sec. 260. Agricultural trade negotiations.

Sec. 261. Policy on unfair trade practices.

Sec. 262. Agricultural aid and trade missions.

Sec. 263. Annual reports by agricultural attaches.

Sec. 264. World livestock market price information.

Sec. 265. Orderly liquidation of stocks.

Sec. 266. Sales of extra long staple cotton.

Sec. 267. Regulations.

Sec. 268. Emerging markets.

Sec. 269. Import assistance for CBI beneficiary countries and the Philippines.

Sec. 270. Studies, reports, and other provisions.

Sec. 271. Implementation of commitments under Uruguay Round Agreements.

Sec. 272. Sense of Congress concerning multilateral disciplines on credit guarantees.

Sec. 273. Foreign market development cooperator program.

Sec. 274. Price support for rice.

TITLE III—CONSERVATION

Subtitle A—Definitions

Sec. 301. Definitions.

Subtitle B—Environmental Conservation Acreage Reserve Program

Sec. 311. Environmental conservation acreage reserve program.

Sec. 312. Conservation reserve program.

Sec. 313. Wetlands reserve program.

Sec. 314. Environmental quality incentives program.

Subtitle C—Conservation Funding

Sec. 321. Conservation funding.

Subtitle D—National Natural Resources Conservation Foundation
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Sec. 331. Short title.

Sec. 332. Definitions.

Sec. 333. National Natural Resources Conservation Foundation.

Sec. 334. Composition and operation.

Sec. 335. Officers and employees.

Sec. 336. Corporate powers and obligations of the Foundation.

Sec. 337. Administrative services and support.

Sec. 338. Audits and petition of Attorney General for equitable relief.

Sec. 339. Release from liability.

Sec. 340. Authorization of appropriations.

Subtitle E—Miscellaneous

Sec. 351. Flood risk reduction.

Sec. 352. Forestry.

Sec. 353. State technical committees.

Sec. 354. Conservation of private grazing land.

Sec. 355. Conforming amendments.

Sec. 356. Water bank program.

Sec. 357. Flood water retention pilot projects.

Sec. 358. Wetland conservation exemption.

Sec. 359. Floodplain easements.

Sec. 360. Resource conservation and development program reauthorization.

Sec. 361. Conservation reserve new acreage.

Sec. 362. Repeal of report requirement.

Sec. 363. Watershed protection and flood prevention act amendments.

Sec. 364. Abandonment of converted wetlands.

TITLE IV—NUTRITION ASSISTANCE

Sec. 401. Food stamp program.

Sec. 402. Commodity distribution program; commodity supplemental food program.

Sec. 403. Emergency food assistance program.

Sec. 404. Soup kitchens program.

Sec. 405. National commodity processing.

TITLE V—MISCELLANEOUS

Subtitle A—General Miscellaneous Provisions

Sec. 501. Fund for dairy producers to pay for nutrient management.

Sec. 502. Crop insurance.

Sec. 503. Revenue insurance.

Sec. 504. Collection and use of agricultural quarantine and inspection fees.

Sec. 505. Commodity Credit Corporation interest rate.

Sec. 506. Everglades Agricultural Area.

Sec. 507. Fund for Rural America.

Subtitle B—Options Pilot Programs and Risk Management Education

Sec. 511. Short title.

Sec. 512. Purpose.

Sec. 513. Pilot programs.

Sec. 514. Terms and conditions.

Sec. 515. Notice.

Sec. 516. Commodity Credit Corporation.
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Sec. 517. Risk management education.

Subtitle C—Commercial Transportation of Equine for Slaughter

Sec. 521. Findings.

Sec. 522. Definitions.

Sec. 523. Standards for humane commercial transportation of equine for

slaughter.

Sec. 524. Records.

Sec. 525. Agents.

Sec. 526. Cooperative agreements.

Sec. 527. Investigations and inspections.

Sec. 528. Interference with enforcement.

Sec. 529. Jurisdiction of courts.

Sec. 530. Civil and criminal penalties.

Sec. 531. Payments for temporary or medical assistance for equine due to violations.

Sec. 532. Relationship to State law.

Sec. 533. Authorization of appropriations.

Subtitle D—Miscellaneous

Sec. 541. Livestock dealer trust.

Sec. 542. Planting of energy crops.

Sec. 543. Reimbursable agreements.

Sec. 544. Swine health protection.

Sec. 545. Cooperative work for protection, management, and improvement of

National Forest System.

Sec. 546. Amendment of the Virus-Serum Toxin Act of 1913.

Sec. 547. Overseas tort claims.

Sec. 548. Graduate School of the United States Department of Agriculture.

Sec. 549. Student intern subsistence program.

Sec. 550. Conveyance of land to White Oak Cemetery.

Sec. 551. Advisory board on agricultural air quality.

Sec. 552. Water systems for rural and Native villages in Alaska.

Sec. 553. Eligibility for grants to broadcasting systems.

Sec. 554. Wildlife Habitat Incentives Program.

Sec. 555. Indian reservations.

Sec. 556. ICD reimbursement for overhead expenses.

Sec. 557. Clarification of effect of resource planning on allocation or use of

water.

TITLE VI—CREDIT

Subtitle A—Agricultural Credit

CHAPTER 1—FARM OWNERSHIP LOANS

Sec. 601. Limitation on direct farm ownership loans.

Sec. 602. Purposes of loans.

Sec. 603. Soil and water conservation and protection.

Sec. 604. Interest rate requirements.

Sec. 605. Insurance of loans.

Sec. 606. Loans guaranteed.

CHAPTER 2—OPERATING LOANS
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Sec. 611. Limitation on direct operating loans.

Sec. 612. Purposes of operating loans.

Sec. 613. Participation in loans.

Sec. 614. Line-of-credit loans.

Sec. 615. Insurance of operating loans.

Sec. 616. Special assistance for beginning farmers and ranchers.

Sec. 617. Limitation on period for which borrowers are eligible for guaranteed

assistance.

CHAPTER 3—EMERGENCY LOANS

Sec. 621. Hazard insurance requirement.

Sec. 622. Maximum emergency loan indebtedness.

Sec. 623. Insurance of emergency loans.

CHAPTER 4—ADMINISTRATIVE PROVISIONS

Sec. 631. Use of collection agencies.

Sec. 632. Notice of loan service programs.

Sec. 633. Sale of property.

Sec. 634. Definitions.

Sec. 635. Authorization for loans.

Sec. 636. List of certified lenders and inventory property demonstration

project.

Sec. 637. Homestead property.

Sec. 638. Restructuring.

Sec. 639. Transfer of inventory lands.

Sec. 640. Implementation of target participation rates.

Sec. 641. Delinquent borrowers and credit study.

CHAPTER 5—GENERAL PROVISIONS

Sec. 651. Conforming amendments.

Subtitle B—Farm Credit System

CHAPTER 1—AGRICULTURAL MORTGAGE SECONDARY MARKET

Sec. 661. Definition of real estate.

Sec. 662. Definition of certified facility.

Sec. 663. Duties of Federal Agricultural Mortgage Corporation.

Sec. 664. Powers of the Corporation.

Sec. 665. Federal reserve banks as depositaries and fiscal agents.

Sec. 666. Certification of agricultural mortgage marketing facilities.

Sec. 667. Guarantee of qualified loans.

Sec. 668. Mandatory reserves and subordinated participation interests eliminated.

Sec. 669. Standards requiring diversified pools.

Sec. 670. Small farms.

Sec. 671. Definition of an affiliate.

Sec. 672. State usury laws superseded.

Sec. 673. Extension of capital transition period.

Sec. 674. Minimum capital level.

Sec. 675. Critical capital level.

Sec. 676. Enforcement levels.

Sec. 677. Recapitalization of the Corporation.

Sec. 678. Liquidation of the Federal Agricultural Mortgage Corporation.
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CHAPTER 2—REGULATORY RELIEF

Sec. 681. Compensation of association personnel.

Sec. 682. Use of private mortgage insurance.

Sec. 683. Removal of certain borrower reporting requirement.

Sec. 684. Reform of regulatory limitations on dividend, member business, and

voting practices of eligible farmer-owned cooperatives.

Sec. 685. Removal of Federal Government certification requirement for certain

private sector financings.

Sec. 686. Borrower stock.

Sec. 687. Disclosure relating to adjustable rate loans.

Sec. 688. Borrowers’ rights.

Sec. 689. Formation of administrative service entities.

Sec. 690. Joint management agreements.

Sec. 691. Dissemination of quarterly reports.

Sec. 692. Regulatory review.

Sec. 693. Examination of Farm Credit System Institutions.

Sec. 694. Conservatorships and receiverships.

Sec. 695. Farm Credit Insurance Fund operations.

Sec. 696. Examinations by the Farm Credit System Insurance Corporation.

Sec. 697. Powers with respect to troubled insured system banks.

Sec. 698. Oversight and regulatory actions by the Farm Credit System Insurance Corporation.

Sec. 699. Farm Credit System Insurance Corporation Board of Directors.

Sec. 699A. Liability for making criminal referrals.

TITLE VII—RURAL DEVELOPMENT

Subtitle A—Amendments to the Food, Agriculture, Conservation, and Trade

Act of 1990

CHAPTER 1—GENERAL PROVISIONS

Sec. 701. Rural investment partnerships.

Sec. 702. Water and waste facility financing.

Sec. 703. Rural wastewater circuit rider program.

Sec. 704. Telemedicine and distance learning services in rural areas.

Sec. 705. Limitation on authorization of appropriations for rural technology

grants.

Sec. 706. Monitoring the economic progress of rural America.

Sec. 707. Analysis by Office of Technology Assessment.

Sec. 708. Rural health infrastructure improvement.

Sec. 709. Census of agriculture.

CHAPTER 2—ALTERNATIVE AGRICULTURAL RESEARCH AND

COMMERCIALIZATION

Sec. 721. Definitions.

Sec. 722. Alternative Agricultural Research and Commercialization Corporation.

Sec. 723. Board of directors, employees, and facilities.

Sec. 724. Research and development grants, contracts, and agreements.

Sec. 725. Commercialization assistance.

Sec. 726. General rules regarding the provision of assistance.

Sec. 727. Regional centers.

Sec. 728. Alternative Agricultural Research and Commercialization Revolving

Fund.
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Sec. 729. Procurement preferences for products receiving corporation assistance.

Sec. 730. Business plan and feasibility study and report.

Subtitle B—Amendments to the Consolidated Farm and Rural Development

Act

CHAPTER 1—GENERAL PROVISIONS

Sec. 741. Water and waste facility loans and grants.

Sec. 742. Emergency community water assistance grant program for small

communities.

Sec. 743. Emergency community water assistance grant program for smallest

communities.

Sec. 744. Agricultural Credit Insurance Fund.

Sec. 745. Rural Development Insurance Fund.

Sec. 746. Insured watershed and resource conservation and development loans.

Sec. 747. Rural industrialization assistance.

Sec. 748. Administration.

Sec. 749. Authorization of appropriations.

Sec. 750. Testimony before congressional committees.

Sec. 751. Prohibition on use of loans for certain purposes.

Sec. 752. Rural development certified lenders program.

Sec. 753. System for delivery of certain rural development programs.

Sec. 754. State rural economic development review panel.

Sec. 755. Limited transfer authority of loan amounts.

Sec. 756. Allocation and transfer of loan guarantee authority.

Sec. 757. National sheep industry improvement center.

CHAPTER 2—RURAL COMMUNITY ADVANCEMENT PROGRAM

Sec. 761. Rural community advancement program.

Sec. 762. Community facilities grant program.

Subtitle C—Amendments to the Rural Electrification Act of 1936

Sec. 771. Purposes; investigations and reports.

Sec. 772. Authorization of appropriations.

Sec. 773. Loans for electrical plants and transmission lines.

Sec. 774. Loans for electrical and plumbing equipment.

Sec. 775. Testimony on budget requests.

Sec. 776. Transfer of functions of administration created by executive order.

Sec. 777. Annual report.

Sec. 778. Prohibition on restricting water and waste facility services to electric

customers.

Sec. 779. Telephone loan terms and conditions.

Sec. 780. Privatization program.

Sec. 781. Rural business incubator fund.

Subtitle D—Miscellaneous Rural Development Provisions

Sec. 791. Interest rate formula.

Sec. 792. Grants for financially stressed farmers, dislocated farmers, and rural

families.

Sec. 793. Cooperative agreements.

TITLE VIII—RESEARCH EXTENSION AND EDUCATION
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Subtitle A—Amendments to National Agricultural Research, Extension, and

Teaching Policy Act of 1977 and Related Statutes

Sec. 801. Purposes of agricultural research, extension, and education.

Sec. 802. Subcommittee on Food, Agricultural, and Forestry Research.

Sec. 803. Joint Council on Food and Agricultural Sciences.

Sec. 804. National Agricultural Research, Extension, Education, and Economics Advisory Board.

Sec. 805. Agricultural Science and Technology Review Board.

Sec. 806. Federal Advisory Committee Act exemption for Federal-State cooperative programs.

Sec. 807. Coordination and planning of agricultural research, extension, and

education.

Sec. 808. Grants and fellowships for food and agricultural sciences education.

Sec. 809. Grants for research on the production and marketing of alcohols and

industrial hydrocarbons from agricultural commodities and forest products.

Sec. 810. Policy research centers.

Sec. 811. Human nutrition intervention and health promotion research program.

Sec. 812. Food and nutrition education program.

Sec. 813. Purposes and findings relating to animal health and disease research.

Sec. 814. Animal Health Science Research Advisory Board.

Sec. 815. Animal health and disease continuing research.

Sec. 816. Animal health and disease national or regional research.

Sec. 817. Resident instruction program at 1890 land-grant colleges.

Sec. 818. Grant program to upgrade agricultural and food sciences facilities at

1890 land-grant colleges.

Sec. 819. National research and training centennial centers authorization.

Sec. 820. Grants to States for international trade development centers.

Sec. 821. Agricultural research programs.

Sec. 822. Extension education.

Sec. 823. Supplemental and alternative crops research.

Sec. 824. Aquaculture assistance programs.

Sec. 825. Rangeland research.

Sec. 826. Technical amendments.

Subtitle B—Amendments to Food, Agriculture, Conservation, and Trade Act

of 1990

Sec. 831. Water quality research, education, and coordination.

Sec. 832. Education program regarding handling of agricultural chemicals and

agricultural chemical containers.

Sec. 833. Program administration.

Sec. 834. National genetics resources program.

Sec. 835. National agricultural weather information system.

Sec. 836. Research regarding production, preparation, processing, handling,

and storage of agricultural products.

Sec. 837. Plant and animal pest and disease control program.

Sec. 838. Livestock product safety and inspection program.

Sec. 839. Plant genome mapping program.

Sec. 840. Specialized research programs.

Sec. 841. Agricultural telecommunications program.

Sec. 842. National centers for agricultural product quality research.

Sec. 843. Turkey research center authorization.

Sec. 844. Special grant to study constraints on agricultural trade.

Sec. 845. Pilot project to coordinate food and nutrition education programs.
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Sec. 846. Assistive technology program for farmers with disabilities.

Sec. 847. Demonstration projects.

Sec. 848. National rural information center clearinghouse.

Sec. 849. Global climate change.

Sec. 850. Technical amendments.

Subtitle C—Miscellaneous Research Provisions

Sec. 861. Critical agricultural materials research.

Sec. 862. 1994 Institutions.

Sec. 863. Smith-Lever Act funding for 1890 land-grant colleges, including

Tuskegee University and the District of Columbia.

Sec. 864. Committee of nine.

Sec. 865. Agricultural research facilities.

Sec. 866. National competitive research initiative.

Sec. 867. Cotton crop reports.

Sec. 868. Rural development research and education.

Sec. 869. Human nutrition research.

Sec. 870. Dairy goat research program.

Sec. 871. Grants to upgrade 1890 land-grant college extension facilities.

Sec. 872. Stuttgart National Aquaculture Research Center.

Sec. 873. National aquaculture policy, planning, and development.

Sec. 874. Expansion of authorities related to the national arboretum.

Sec. 875. Study of agricultural research service.

Sec. 876. Labeling of domestic and imported lamb and mutton.

Sec. 877. Sense of Senate.

TITLE IX—AGRICULTURAL PROMOTION

Subtitle A—Popcorn

Sec. 901. Short title.

Sec. 902. Findings and declaration of policy.

Sec. 903. Definitions.

Sec. 904. Issuance of orders.

Sec. 905. Required terms in orders.

Sec. 906. Referenda.

Sec. 907. Petition and review.

Sec. 908. Enforcement.

Sec. 909. Investigations and power to subpoena.

Sec. 910. Relation to other programs.

Sec. 911. Regulations.

Sec. 912. Authorization of appropriations.

Subtitle B—Canola and Rapeseed

Sec. 921. Short title.

Sec. 922. Findings and declaration of policy.

Sec. 923. Definitions.

Sec. 924. Issuance and amendment of orders.

Sec. 925. Required terms in orders.

Sec. 926. Assessments.

Sec. 927. Referenda.

Sec. 928. Petition and review.

Sec. 929. Enforcement.

Sec. 930. Investigations and power to subpoena.

Sec. 931. Suspension or termination of an order.
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Sec. 932. Regulations.

Sec. 933. Authorization of appropriations.

Subtitle C—Kiwifruit

Sec. 941. Short title.

Sec. 942. Findings and purposes.

Sec. 943. Definitions.

Sec. 944. Issuance of orders.

Sec. 945. National Kiwifruit Board.

Sec. 946. Required terms in order.

Sec. 947. Permissive terms in order.

Sec. 948. Petition and review.

Sec. 949. Enforcement.

Sec. 950. Investigations and power to subpoena.

Sec. 951. Referenda.

Sec. 952. Suspension and termination of order by Secretary.

Sec. 953. Regulations.

Sec. 954. Authorization of appropriations.

Subtitle D—Commodity Promotion and Evaluation

Sec. 961. Commodity promotion and evaluation.

1 TITLE I—AGRICULTURAL

2 MARKET TRANSITION PROGRAM

3 SEC. 101. SHORT TITLE.

4 This title may be cited as the ‘‘Agricultural Market

5 Transition Act’’.

6 SEC. 102. DEFINITIONS.

7 In this title:

8 (1) CONSIDERED PLANTED.—The term ‘‘con9 sidered planted’’ means acreage that is considered

10 planted under title V of the Agricultural Act of 1949

11 (7 U.S.C. 1461 et seq.) (as in effect prior to the sus12 pension under section 110(b)(1)(J)).

13 (2) CONTRACT.—The term ‘‘contract’’ means a

14 production flexibility contract entered into under

15 section 103.
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1 (3) CONTRACT ACREAGE.—The term ‘‘contract

2 acreage’’ means 1 or more crop acreage bases estab3 lished for contract commodities under title V of the

4 Agricultural Act of 1949 (as in effect prior to the

5 suspension under section 110(b)(1)(J)) that would

6 have been in effect for the 1996 crop (but for the

7 suspension under section 110(b)(1)(J)).

8 (4) CONTRACT COMMODITY.—The term ‘‘con9 tract commodity’’ means wheat, corn, grain sor10 ghum, barley, oats, upland cotton, and rice.

11 (5) CONTRACT PAYMENT.—The term ‘‘contract

12 payment’’ means a payment made under section 103

13 pursuant to a contract.

14 (6) CORN.—The term ‘‘corn’’ means field corn.

15 (7) DEPARTMENT.—The term ‘‘Department’’

16 means the United States Department of Agriculture.

17 (8) FARM PROGRAM PAYMENT YIELD.—The

18 term ‘‘farm program payment yield’’ means the farm

19 program payment yield established for the 1995 crop

20 of a contract commodity under title V of the Agri21 cultural Act of 1949 (as in effect prior to the sus22 pension under section 110(b)(1)(J)).

23 (9) LOAN COMMODITY.—The term ‘‘loan com24 modity’’ means each contract commodity, extra long

25 staple cotton, and oilseeds.
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1 (10) OILSEED.—The term ‘‘oilseed’’ means a

2 crop of soybeans, sunflower seed, rapeseed, canola,

3 safflower, flaxseed, mustard seed, or, if designated

4 by the Secretary, other oilseeds.

5 (11) PERSON.—The term ‘‘person’’ means an

6 individual, partnership, firm, joint-stock company,

7 corporation, association, trust, estate, or State

8 agency.

9 (12) PRODUCER.—

10 (A) IN GENERAL.—The term ‘‘producer’’

11 means a person who, as owner, landlord, ten12 ant, or sharecropper, shares in the risk of pro13 ducing a crop, and is entitled to share in the

14 crop available for marketing from the farm, or

15 would have shared had the crop been produced.

16 (B) HYBRID SEED.—The term ‘‘producer’’

17 includes a person growing hybrid seed under

18 contract. In determining the interest of a grow19 er of hybrid seed in a crop, the Secretary shall

20 not take into consideration the existence of a

21 hybrid seed contract.

22 (13) PROGRAM.—The term ‘‘program’’ means

23 the agricultural market transition program estab24 lished under this title.
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1 (14) SECRETARY.—The term ‘‘Secretary’’

2 means the Secretary of Agriculture.

3 (15) STATE.—The term ‘‘State’’ means each of

4 the several States of the United States, the District

5 of Columbia, the Commonwealth of Puerto Rico, and

6 any other territory or possession of the United

7 States.

8 (16) UNITED STATES.—The term ‘‘United

9 States’’, when used in a geographical sense, means

10 all of the States.

11 SEC. 103. PRODUCTION FLEXIBILITY CONTRACTS.

12 (a) CONTRACTS AUTHORIZED.—

13 (1) OFFER AND TERMS.—Beginning as soon as

14 practicable after the date of the enactment of this

15 title, the Secretary shall offer to enter into a con16 tract with an eligible owner or operator described in

17 paragraph (2) on a farm containing eligible farm18 land. Under the terms of a contract, the owner or

19 operator shall agree, in exchange for annual contract

20 payments, to comply with—

21 (A) the conservation plan for the farm pre22 pared in accordance with section 1212 of the

23 Food Security Act of 1985 (16 U.S.C. 3812);
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1 (B) wetland protection requirements appli2 cable to the farm under subtitle C of title XII

3 of the Act (16 U.S.C. 3821 et seq.); and

4 (C) the planting flexibility requirements of

5 subsection (j).

6 (2) ELIGIBLE OWNERS AND OPERATORS DE7 SCRIBED.—The following persons shall be considered

8 to be an owner or operator eligible to enter into a

9 contract:

10 (A) An owner of eligible farmland who as11 sumes all of the risk of producing a crop.

12 (B) An owner of eligible farmland who

13 shares in the risk of producing a crop.

14 (C) An operator of eligible farmland with

15 a share-rent lease of the eligible farmland, re16 gardless of the length of the lease, if the owner

17 enters into the same contract.

18 (D) An operator of eligible farmland who

19 cash rents the eligible farmland under a lease

20 expiring on or after September 30, 2002, in

21 which case the consent of the owner is not re22 quired.

23 (E) An operator of eligible farmland who

24 cash rents the eligible farmland under a lease
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1 expiring before September 30, 2002, if the

2 owner consents to the contract.

3 (F) An owner of eligible farmland who

4 cash rents the eligible farmland and the lease

5 term expires before September 30, 2002, but

6 only if the actual operator of the farm declines

7 to enter into a contract. In the case of an

8 owner covered by this subparagraph, contract

9 payments shall not begin under a contract until

10 the fiscal year following the fiscal year in which

11 the lease held by the nonparticipating operator

12 expires.

13 (G) An owner or operator described in a

14 preceding subparagraph regardless of whether

15 the owner or operator purchased catastrophic

16 risk protection for a fall-planted 1996 crop

17 under section 508(b) of the Federal Crop Insur18 ance Act (7 U.S.C. 1508(b)).

19 (3) TENANTS AND SHARECROPPERS.—In carry20 ing out this section, the Secretary shall provide ade21 quate safeguards to protect the interests of opera22 tors who are tenants and sharecroppers.

23 (b) ELEMENTS.—

24 (1) TIME FOR CONTRACTING.—
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1 (A) DEADLINE.—Except as provided in

2 subparagraph (B), the Secretary may not enter

3 into a contract after April 15, 1996.

4 (B) CONSERVATION RESERVE LANDS.—

5 (i) IN GENERAL.—At the beginning of

6 each fiscal year, the Secretary shall allow

7 an eligible owner or operator on a farm

8 covered by a conservation reserve contract

9 entered into under section 1231 of the

10 Food Security Act of 1985 (16 U.S.C.

11 3831) that terminates after the date speci12 fied in subparagraph (A) to enter into or

13 expand a production flexibility contract to

14 cover the contract acreage of the farm that

15 was subject to the former conservation re16 serve contract.

17 (ii) AMOUNT.—Contract payments

18 made for contract acreage under this sub19 paragraph shall be made at the rate and

20 amount applicable to the annual contract

21 payment level for the applicable crop.

22 (2) DURATION OF CONTRACT.—

23 (A) BEGINNING DATE.—A contract shall

24 begin with—
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1 (i) the 1996 crop of a contract com2 modity; or

3 (ii) in the case of acreage that was

4 subject to a conservation reserve contract

5 described in paragraph (1)(B), the date

6 the production flexibility contract was en7 tered into or expanded to cover the acre8 age.

9 (B) ENDING DATE.—A contract shall ex10 tend through the 2002 crop.

11 (3) ESTIMATION OF CONTRACT PAYMENTS.—At

12 the time the Secretary enters into a contract, the

13 Secretary shall provide an estimate of the minimum

14 contract payments anticipated to be made during at

15 least the first fiscal year for which contract pay16 ments will be made.

17 (c) ELIGIBLE FARMLAND DESCRIBED.—Land shall

18 be considered to be farmland eligible for coverage under

19 a contract only if the land has contract acreage attrib20 utable to the land and—

21 (1) for at least 1 of the 1991 through 1995

22 crops, at least a portion of the land was enrolled in

23 the acreage reduction program authorized for a crop

24 of a contract commodity under section 101B, 103B,

25 105B, or 107B of the Agricultural Act of 1949 (as
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1 in effect prior to the amendment made by section

2 110(b)(2)) or was considered planted, including land

3 on a farm that is owned or leased by a beginning

4 farmer (as determined by the Secretary) that the

5 Secretary determines is necessary to establish a fair

6 and equitable crop acreage base;

7 (2) was subject to a conservation reserve con8 tract under section 1231 of the Food Security Act

9 of 1985 (16 U.S.C. 3831) whose term expired, or

10 was voluntarily terminated, on or after January 1,

11 1995; or

12 (3) is released from coverage under a conserva13 tion reserve contract by the Secretary during the pe14 riod beginning on January 1, 1995, and ending on

15 the date specified in subsection (b)(1)(A).

16 (d) TIME FOR PAYMENT.—

17 (1) IN GENERAL.—An annual contract payment

18 shall be made not later than September 30 of each

19 of fiscal years 1996 through 2002.

20 (2) ADVANCE PAYMENTS.—

21 (A) FISCAL YEAR 1996.—At the option of

22 the owner or operator, 50 percent of the con23 tract payment for fiscal year 1996 shall be

24 made not later than June 15, 1996.
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1 (B) SUBSEQUENT FISCAL YEARS.—At the

2 option of the owner or operator for fiscal year

3 1997 and each subsequent fiscal year, 50 per4 cent of the annual contract payment shall be

5 made on December 15.

6 (e) AMOUNTS AVAILABLE FOR CONTRACT PAYMENTS

7 FOR EACH FISCAL YEAR.—

8 (1) IN GENERAL.—The Secretary shall, to the

9 maximum extent practicable, expend on a fiscal year

10 basis the following amounts to satisfy the obligations

11 of the Secretary under all contracts:

12 (A) For fiscal year 1996, $5,570,000,000.

13 (B) For fiscal year 1997, $5,385,000,000.

14 (C) For fiscal year 1998, $5,800,000,000.

15 (D) For fiscal year 1999, $5,603,000,000.

16 (E) For fiscal year 2000, $5,130,000,000.

17 (F) For fiscal year 2001, $4,130,000,000.

18 (G) For fiscal year 2002, $4,008,000,000.

19 (2) ALLOCATION.—The amount made available

20 for a fiscal year under paragraph (1) shall be allo21 cated as follows:

22 (A) For wheat, 26.26 percent.

23 (B) For corn, 46.22 percent.

24 (C) For grain sorghum, 5.11 percent.

25 (D) For barley, 2.16 percent.
21

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1 (E) For oats, 0.15 percent.

2 (F) For upland cotton, 11.63 percent.

3 (G) For rice, 8.47 percent.

4 (3) ADJUSTMENT.—The Secretary shall adjust

5 the amounts allocated for each contract commodity

6 under paragraph (2) for a particular fiscal year by—

7 (A) subtracting an amount equal to the

8 amount, if any, necessary to satisfy payment re9 quirements under sections 103B, 105B, and

10 107B of the Agricultural Act of 1949 (as in ef11 fect prior to the amendment made by section

12 110(b)(2)) for the 1994 and 1995 crops of the

13 commodity;

14 (B) adding an amount equal to the sum of

15 all repayments of deficiency payments received

16 under section 114(a)(2) of the Agricultural Act

17 of 1949 for the commodity;

18 (C) to the maximum extent practicable,

19 adding an amount equal to the sum of all con20 tract payments withheld by the Secretary, at

21 the request of an owner or operator subject to

22 a contract, as an offset against repayments of

23 deficiency payments otherwise required under

24 section 114(a)(2) of the Act (as so in effect) for

25 the commodity; and
22

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1 (D) adding an amount equal to the sum of

2 all refunds of contract payments received dur3 ing the preceding fiscal year under subsection

4 (h) for the commodity.

5 (4) ADDITIONAL RICE ALLOCATION.—In addi6 tion to the allocations provided under paragraphs

7 (1), (2), and (3), the amounts made available for

8 rice contract payments shall be increased by

9 $17,000,000 for each of fiscal years 1997 through

10 2002.

11 (f) DETERMINATION OF CONTRACT PAYMENTS.—

12 (1) INDIVIDUAL PAYMENT QUANTITY OF CON13 TRACT COMMODITIES.—For each contract, the pay14 ment quantity of a contract commodity for each fis15 cal year shall be equal to the product of—

16 (A) 85 percent of the contract acreage;

17 and

18 (B) the farm program payment yield.

19 (2) ANNUAL PAYMENT QUANTITY OF CONTRACT

20 COMMODITIES.—The payment quantity of each con21 tract commodity covered by all contracts for each

22 fiscal year shall equal the sum of the amounts cal23 culated under paragraph (1) for each individual con24 tract.
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1 (3) ANNUAL PAYMENT RATE.—The payment

2 rate for a contract commodity for each fiscal year

3 shall be equal to—

4 (A) the amount made available under sub5 section (e) for the contract commodity for the

6 fiscal year; divided by

7 (B) the amount determined under para8 graph (2) for the fiscal year.

9 (4) ANNUAL PAYMENT AMOUNT.—The amount

10 to be paid under a contract in effect for each fiscal

11 year with respect to a contract commodity shall be

12 equal to the product of—

13 (A) the payment quantity determined

14 under paragraph (1) with respect to the con15 tract; and

16 (B) the payment rate in effect under para17 graph (3).

18 (5) ASSIGNMENT OF CONTRACT PAYMENTS.—

19 The provisions of section 8(g) of the Soil Conserva20 tion and Domestic Allotment Act (16 U.S.C.

21 590h(g)) (relating to assignment of payments) shall

22 apply to contract payments under this subsection.

23 The owner or operator making the assignment, or

24 the assignee, shall provide the Secretary with notice,

25 in such manner as the Secretary may require in the
24

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1 contract, of any assignment made under this para2 graph.

3 (6) SHARING OF CONTRACT PAYMENTS.—The

4 Secretary shall provide for the sharing of contract

5 payments among the owners and operators subject

6 to the contract on a fair and equitable basis.

7 (g) PAYMENT LIMITATION.—The total amount of

8 contract payments made to a person under a contract dur9 ing any fiscal year may not exceed the payment limitations

10 established under sections 1001 through 1001C of the

11 Food Security Act of 1985 (7 U.S.C. 1308 through 1308–

12 3).

13 (h) EFFECT OF VIOLATION.—

14 (1) TERMINATION OF CONTRACT.—Except as

15 provided in paragraph (2), if an owner or operator

16 subject to a contract violates the conservation plan

17 for the farm containing eligible farmland under the

18 contract, wetland protection requirements applicable

19 to the farm, or the planting flexibility requirements

20 of subsection (j), the Secretary shall terminate the

21 contract with respect to the owner or operator on

22 each farm in which the owner or operator has an in23 terest. On the termination, the owner or operator

24 shall forfeit all rights to receive future contract pay25 ments on each farm in which the owner or operator
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1 has an interest and shall refund to the Secretary all

2 contract payments received by the owner or operator

3 during the period of the violation, together with in4 terest on the contract payments as determined by

5 the Secretary.

6 (2) REFUND OR ADJUSTMENT.—If the Sec7 retary determines that a violation does not warrant

8 termination of the contract under paragraph (1), the

9 Secretary may require the owner or operator subject

10 to the contract—

11 (A) to refund to the Secretary that part of

12 the contract payments received by the owner or

13 operator during the period of the violation, to14 gether with interest on the contract payments

15 as determined by the Secretary; or

16 (B) to accept a reduction in the amount of

17 future contract payments that is proportionate

18 to the severity of the violation, as determined

19 by the Secretary.

20 (3) FORECLOSURE.—An owner or operator sub21 ject to a contract may not be required to make re22 payments to the Secretary of amounts received

23 under the contract if the contract acreage has been

24 foreclosed on and the Secretary determines that for25 giving the repayments is appropriate in order to pro-
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1 vide fair and equitable treatment. This paragraph

2 shall not void the responsibilities of such an owner

3 or operator under the contract if the owner or opera4 tor continues or resumes operation, or control, of the

5 contract acreage. On the resumption of operation or

6 control over the contract acreage by the owner or

7 operator, the provisions of the contract in effect on

8 the date of the foreclosure shall apply.

9 (4) REVIEW.—A determination of the Secretary

10 under this subsection shall be considered to be an

11 adverse decision for purposes of the availability of

12 administrative review of the determination.

13 (i) TRANSFER OF INTEREST IN LANDS SUBJECT TO

14 CONTRACT.—

15 (1) EFFECT OF TRANSFER.—Except as pro16 vided in paragraph (2), the transfer by an owner or

17 operator subject to a contract of the right and inter18 est of the owner or operator in the contract acreage

19 shall result in the termination of the contract with

20 respect to the acreage, effective on the date of the

21 transfer, unless the transferee of the acreage agrees

22 with the Secretary to assume all obligations of the

23 contract. At the request of the transferee, the Sec24 retary may modify the contract if the modifications
27

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1 are consistent with the objectives of this section as

2 determined by the Secretary.

3 (2) EXCEPTION.—If an owner or operator who

4 is entitled to a contract payment dies, becomes in5 competent, or is otherwise unable to receive the con6 tract payment, the Secretary shall make the pay7 ment, in accordance with regulations prescribed by

8 the Secretary.

9 (j) PLANTING FLEXIBILITY.—

10 (1) PERMITTED CROPS.—Subject to paragraph

11 (2), any commodity or crop may be planted on con12 tract acreage on a farm.

13 (2) LIMITATIONS.—

14 (A) HAYING AND GRAZING.—

15 (i) TIME LIMITATIONS.—Haying and

16 grazing on land exceeding 15 percent of

17 the contract acreage on a farm as provided

18 in clause (iii) shall be permitted, except

19 during any consecutive 5-month period be20 tween April 1 and October 31 that is de21 termined by the State committee estab22 lished under section 8(b) of the Soil Con23 servation and Domestic Allotment Act (16

24 U.S.C. 590h(b)) for a State. In the case of

25 a natural disaster, the Secretary may per-
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1 mit unlimited haying and grazing on the

2 contract acreage of a farm.

3 (ii) CONTRACT COMMODITIES.—Con4 tract acreage planted to a contract com5 modity during the crop year may be hayed

6 or grazed without limitation.

7 (iii) HAYING AND GRAZING LIMITA8 TION ON PORTION OF CONTRACT ACRE9 AGE.—Unlimited haying and grazing shall

10 be permitted on not more than 15 percent

11 of the contract acreage on a farm.

12 (B) ALFALFA.—Alfalfa may be planted for

13 harvest without limitation on the contract acre14 age on a farm, except that each contract acre

15 that is planted for harvest to alfalfa in excess

16 of 15 percent of the total contract acreage on

17 a farm shall be ineligible for contract payments.

18 (C) FRUITS AND VEGETABLES.—

19 (i) IN GENERAL.—The planting for

20 harvest of fruits and vegetables shall be

21 prohibited on contract acreage, unless

22 there is a history of double cropping of a

23 contract commodity and fruits and vegeta24 bles.
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1 (ii) UNRESTRICTED VEGETABLES.—

2 Lentils, mung beans, and dry peas may be

3 planted without limitation on contract

4 acreage.

5 (k) CONSERVATION FARM OPTION.—

6 (1) IN GENERAL.—The Secretary shall offer eli7 gible owners and operators with contract acreage

8 under this title on a farm who also have entered into

9 a conservation reserve program contract under sub10 chapter B of chapter 1 of subtitle D of title XII of

11 the Food Security Act of 1985 (7 U.S.C. 3831 et

12 seq.), the option of entering into a conservation farm

13 option contract for a period of 10 years, as an alter14 native to the market transition payment contract.

15 (2) TERMS.—Under the conservation farm op16 tion contract—

17 (A) the Secretary shall provide eligible

18 owners and operators with payments that re19 flect the Secretary’s estimate of the payments

20 and benefits the eligible owner or operator is

21 expected to receive during the 10-year period

22 under—

23 (i) conservation cost-share programs

24 administered by the Secretary;
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1 (ii) conservation reserve program

2 rental and cost-share payments;

3 (iii) market transition payments; and

4 (iv) loan programs for contract com5 modities, oilseeds, and extra long staple

6 cotton; and

7 (B) the eligible owner and operator shall—

8 (i) forego eligibility to participate in

9 the conservation reserve program, con10 servation cost-share program payments,

11 and market transition contracts; and

12 (ii) comply with a conservation plan

13 for the farm approved by the Secretary

14 that is consistent with the State conserva15 tion farm option plan established under

16 paragraph (3).

17 (3) STATE CONSERVATION FARM OPTION

18 PLAN.—In consultation with the State Technical

19 Committee established under section 1261 of the

20 Food Security Act of 1985 (16 U.S.C. 3801), the

21 Secretary shall establish a plan for each State that

22 is designed to—

23 (A) protect wildlife habitat;

24 (B) improve water quality; and

25 (C) reduce soil erosion.
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1 SEC. 104. NONRECOURSE MARKETING ASSISTANCE LOANS

2 AND LOAN DEFICIENCY PAYMENTS.

3 (a) AVAILABILITY OF NONRECOURSE LOANS.—

4 (1) AVAILABILITY.—For each of the 1996

5 through 2002 crops of each loan commodity, the

6 Secretary shall make available to producers on a

7 farm nonrecourse marketing assistance loans for

8 loan commodities produced on the farm. The loans

9 shall be made under terms and conditions that are

10 prescribed by the Secretary and at the loan rate es11 tablished under subsection (b) for the loan commod12 ity.

13 (2) ELIGIBLE PRODUCTION.—The following

14 production shall be eligible for a marketing assist15 ance loan under this section:

16 (A) In the case of a marketing assistance

17 loan for a contract commodity, any production

18 by a producer who has entered into a produc19 tion flexibility contract.

20 (B) In the case of a marketing assistance

21 loan for extra long staple cotton and oilseeds,

22 any production.

23 (b) LOAN RATES.—

24 (1) WHEAT.—
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1 (A) LOAN RATE.—Subject to subparagraph

2 (B), the loan rate for a marketing assistance

3 loan for wheat shall be—

4 (i) not less than 85 percent of the

5 simple average price received by producers

6 of wheat, as determined by the Secretary,

7 during the marketing years for the imme8 diately preceding 5 crops of wheat, exclud9 ing the year in which the average price was

10 the highest and the year in which the aver11 age price was the lowest in the period; but

12 (ii) not more than $2.58 per bushel.

13 (B) STOCKS TO USE RATIO ADJUST14 MENT.—If the Secretary estimates for any mar15 keting year that the ratio of ending stocks of

16 wheat to total use for the marketing year will

17 be—

18 (i) equal to or greater than 30 per19 cent, the Secretary may reduce the loan

20 rate for wheat for the corresponding crop

21 by an amount not to exceed 10 percent in

22 any year;

23 (ii) less than 30 percent but not less

24 than 15 percent, the Secretary may reduce

25 the loan rate for wheat for the correspond-
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1 ing crop by an amount not to exceed 5 per2 cent in any year; or

3 (iii) less than 15 percent, the Sec4 retary may not reduce the loan rate for

5 wheat for the corresponding crop.

6 (C) NO EFFECT ON FUTURE YEARS.—Any

7 reduction in the loan rate for wheat under sub8 paragraph (B) shall not be considered in deter9 mining the loan rate for wheat for subsequent

10 years.

11 (2) FEED GRAINS.—

12 (A) LOAN RATE FOR CORN.—Subject to

13 subparagraph (B), the loan rate for a market14 ing assistance loan for corn shall be—

15 (i) not less than 85 percent of the

16 simple average price received by producers

17 of corn, as determined by the Secretary,

18 during the marketing years for the imme19 diately preceding 5 crops of corn, excluding

20 the year in which the average price was the

21 highest and the year in which the average

22 price was the lowest in the period; but

23 (ii) not more than $1.89 per bushel.

24 (B) STOCKS TO USE RATIO ADJUST25 MENT.—If the Secretary estimates for any mar-
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1 keting year that the ratio of ending stocks of

2 corn to total use for the marketing year will

3 be—

4 (i) equal to or greater than 25 per5 cent, the Secretary may reduce the loan

6 rate for corn for the corresponding crop by

7 an amount not to exceed 10 percent in any

8 year;

9 (ii) less than 25 percent but not less

10 than 12.5 percent, the Secretary may re11 duce the loan rate for corn for the cor12 responding crop by an amount not to ex13 ceed 5 percent in any year; or

14 (iii) less than 12.5 percent the Sec15 retary may not reduce the loan rate for

16 corn for the corresponding crop.

17 (C) NO EFFECT ON FUTURE YEARS.—Any

18 reduction in the loan rate for corn under sub19 paragraph (B) shall not be considered in deter20 mining the loan rate for corn for subsequent

21 years.

22 (D) OTHER FEED GRAINS.—The loan rate

23 for a marketing assistance loan for grain sor24 ghum, barley, and oats, respectively, shall be es25 tablished at such level as the Secretary deter-
35

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1 mines is fair and reasonable in relation to the

2 rate that loans are made available for corn, tak3 ing into consideration the feeding value of the

4 commodity in relation to corn.

5 (3) UPLAND COTTON.—

6 (A) LOAN RATE.—Subject to subparagraph

7 (B), the loan rate for a marketing assistance

8 loan for upland cotton shall be established by

9 the Secretary at such loan rate, per pound, as

10 will reflect for the base quality of upland cot11 ton, as determined by the Secretary, at average

12 locations in the United States a rate that is not

13 less than the smaller of—

14 (i) 85 percent of the average price

15 (weighted by market and month) of the

16 base quality of cotton as quoted in the des17 ignated United States spot markets during

18 3 years of the 5-year period ending July

19 31 in the year in which the loan rate is an20 nounced, excluding the year in which the

21 average price was the highest and the year

22 in which the average price was the lowest

23 in the period; or

24 (ii) 90 percent of the average, for the

25 15-week period beginning July 1 of the
36

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1 year in which the loan rate is announced,

2 of the 5 lowest-priced growths of the

growths quoted for Middling 13 3 ⁄32-inch cot4 ton C.I.F. Northern Europe (adjusted

5 downward by the average difference during

6 the period April 15 through October 15 of

7 the year in which the loan is announced

8 between the average Northern European

9 price quotation of such quality of cotton

10 and the market quotations in the des11 ignated United States spot markets for the

12 base quality of upland cotton), as deter13 mined by the Secretary.

14 (B) LIMITATIONS.—The loan rate for a

15 marketing assistance loan for upland cotton

16 shall not be less than $0.50 per pound or more

17 than $0.5192 per pound.

18 (4) EXTRA LONG STAPLE COTTON.—The loan

19 rate for a marketing assistance loan for extra long

20 staple cotton shall be—

21 (A) not less than 85 percent of the simple

22 average price received by producers of extra

23 long staple cotton, as determined by the Sec24 retary, during 3 years of the 5 previous market25 ing years, excluding the year in which the aver-
37

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1 age price was the highest and the year in which

2 the average price was the lowest in the period;

3 but

4 (B) not more than $0.7965 per pound.

5 (5) RICE.—The loan rate for a marketing as6 sistance loan for rice shall be $6.50 per hundred7 weight.

8 (6) OILSEEDS.—

9 (A) SOYBEANS.—The loan rate for a mar10 keting assistance loan for soybeans shall be—

11 (i) not less than 85 percent of the

12 simple average price received by producers

13 of soybeans, as determined by the Sec14 retary, during the marketing years for the

15 immediately preceding 5 crops of soybeans,

16 excluding the year in which the average

17 price was the highest and the year in

18 which the average price was the lowest in

19 the period; but

20 (ii) not less than $4.92 or more than

21 $5.26 per bushel.

22 (B) SUNFLOWER SEED, CANOLA,

23 RAPESEED, SAFFLOWER, MUSTARD SEED, AND

24 FLAXSEED.—The loan rate for a marketing as25 sistance loan for sunflower seed, canola,
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1 rapeseed, safflower, mustard seed, and flaxseed,

2 individually, shall be—

3 (i) not less than 85 percent of the

4 simple average price received by producers

5 of sunflower seed, individually, as deter6 mined by the Secretary, during the mar7 keting years for the immediately preceding

8 5 crops of sunflower seed, individually, ex9 cluding the year in which the average price

10 was the highest and the year in which the

11 average price was the lowest in the period;

12 but

13 (ii) not less than $0.087 or more than

14 $0.093 per pound.

15 (C) OTHER OILSEEDS.—The loan rates for

16 a marketing assistance loan for other oilseeds

17 shall be established at such level as the Sec18 retary determines is fair and reasonable in rela19 tion to the loan rate available for soybeans, ex20 cept in no event shall the rate for the oilseeds

21 (other than cottonseed) be less than the rate es22 tablished for soybeans on a per-pound basis for

23 the same crop.

24 (c) TERM OF LOAN.—In the case of each loan com25 modity (other than upland cotton or extra long staple cot-
39

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1 ton), a marketing assistance loan under subsection (a)

2 shall have a term of 9 months beginning on the first day

3 of the first month after the month in which the loan is

4 made. A marketing assistance loan for upland cotton or

5 extra long staple cotton shall have a term of 10 months

6 beginning on the first day of the first month after the

7 month in which the loan is made. The Secretary may not

8 extend the term of a marketing assistance loan for any

9 loan commodity.

10 (d) REPAYMENT.—

11 (1) REPAYMENT RATES FOR WHEAT AND FEED

12 GRAINS.—The Secretary shall permit a producer to

13 repay a marketing assistance loan under subsection

14 (a) for wheat, corn, grain sorghum, barley, and oats

15 at a level that the Secretary determines will—

16 (A) minimize potential loan forfeitures;

17 (B) minimize the accumulation of stocks of

18 the commodities by the Federal Government;

19 (C) minimize the cost incurred by the Fed20 eral Government in storing the commodities;

21 and

22 (D) allow the commodities produced in the

23 United States to be marketed freely and com24 petitively, both domestically and internationally.
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1 (2) REPAYMENT RATES FOR UPLAND COTTON,

2 OILSEEDS, AND RICE.—The Secretary shall permit

3 producers to repay a marketing assistance loan

4 under subsection (a) for upland cotton, oilseeds, and

5 rice at a level that is the lesser of—

6 (A) the loan rate established for upland

7 cotton, oilseeds, and rice, respectively, under

8 subsection (b); or

9 (B) the prevailing world market price for

10 upland cotton, oilseeds, and rice, respectively

11 (adjusted to United States quality and loca12 tion), as determined by the Secretary.

13 (3) REPAYMENT RATES FOR EXTRA LONG STA14 PLE COTTON.—Repayment of a marketing assistance

15 loan for extra long staple cotton shall be at the loan

16 rate established for the commodity under subsection

17 (b), plus interest (as determined by the Secretary).

18 (4) PREVAILING WORLD MARKET PRICE.—For

19 purposes of paragraph (2)(B) and subsection (f), the

20 Secretary shall prescribe by regulation—

21 (A) a formula to determine the prevailing

22 world market price for each loan commodity,

23 adjusted to United States quality and location;

24 and
41

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1 (B) a mechanism by which the Secretary

2 shall announce periodically the prevailing world

3 market price for each loan commodity.

4 (5) ADJUSTMENT OF PREVAILING WORLD MAR5 KET PRICE FOR UPLAND COTTON.—

6 (A) IN GENERAL.—During the period end7 ing July 31, 2003, the prevailing world market

8 price for upland cotton (adjusted to United

9 States quality and location) established under

10 paragraph (4) shall be further adjusted if—

11 (i) the adjusted prevailing world mar12 ket price is less than 115 percent of the

13 loan rate for upland cotton established

14 under subsection (b), as determined by the

15 Secretary; and

16 (ii) the Friday through Thursday av17 erage price quotation for the lowest-priced

18 United States growth as quoted for Middling (M) 13 19 ⁄32-inch cotton delivered C.I.F.

20 Northern Europe is greater than the Fri21 day through Thursday average price of the

22 5 lowest-priced growths of upland cotton,

as quoted for Middling (M) 13 23 ⁄32-inch cot24 ton, delivered C.I.F. Northern Europe (re-
42

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1 ferred to in this subsection as the ‘‘North2 ern Europe price’’).

3 (B) FURTHER ADJUSTMENT.—Except as

4 provided in subparagraph (C), the adjusted pre5 vailing world market price for upland cotton

6 shall be further adjusted on the basis of some

7 or all of the following data, as available:

8 (i) The United States share of world

9 exports.

10 (ii) The current level of cotton export

11 sales and cotton export shipments.

12 (iii) Other data determined by the

13 Secretary to be relevant in establishing an

14 accurate prevailing world market price for

15 upland cotton (adjusted to United States

16 quality and location).

17 (C) LIMITATION ON FURTHER ADJUST18 MENT.—The adjustment under subparagraph

19 (B) may not exceed the difference between—

20 (i) the Friday through Thursday aver21 age price for the lowest-priced United

22 States growth as quoted for Middling

13 23 ⁄32-inch cotton delivered C.I.F. Northern

24 Europe; and

25 (ii) the Northern Europe price.
43

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1 (e) LOAN DEFICIENCY PAYMENTS.—

2 (1) AVAILABILITY.—Except as provided in

3 paragraph (4), the Secretary may make loan defi4 ciency payments available to producers who, al5 though eligible to obtain a marketing assistance loan

6 under subsection (a) with respect to a loan commod7 ity, agree to forgo obtaining the loan for the com8 modity in return for payments under this subsection.

9 (2) COMPUTATION.—A loan deficiency payment

10 under this subsection shall be computed by multiply11 ing—

12 (A) the loan payment rate determined

13 under paragraph (3) for the loan commodity; by

14 (B) the quantity of the loan commodity

15 that the producers on a farm are eligible to

16 place under loan but for which the producers

17 forgo obtaining the loan in return for payments

18 under this subsection.

19 (3) LOAN PAYMENT RATE.—For purposes of

20 this subsection, the loan payment rate shall be the

21 amount by which—

22 (A) the loan rate established under sub23 section (b) for the loan commodity; exceeds

24 (B) the rate at which a loan for the com25 modity may be repaid under subsection (d).
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1 (4) EXCEPTION FOR EXTRA LONG STAPLE COT2 TON.—This subsection shall not apply with respect

3 to extra long staple cotton.

4 (f) SPECIAL MARKETING LOAN PROVISIONS FOR UP5 LAND COTTON.—

6 (1) COTTON USER MARKETING CERTIFI7 CATES.—

8 (A) ISSUANCE.—Subject to subparagraph

9 (D), during the period ending July 31, 2003,

10 the Secretary shall issue marketing certificates

11 or cash payments to domestic users and export12 ers for documented purchases by domestic users

13 and sales for export by exporters made in the

14 week following a consecutive 4-week period in

15 which—

16 (i) the Friday through Thursday aver17 age price quotation for the lowest-priced

18 United States growth, as quoted for Middling (M) 13 19 ⁄32-inch cotton, delivered

20 C.I.F. Northern Europe exceeds the

21 Northern Europe price by more than 1.25

22 cents per pound; and

23 (ii) the prevailing world market price

24 for upland cotton (adjusted to United

25 States quality and location) does not ex-
45

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1 ceed 130 percent of the loan rate for up2 land cotton established under subsection

3 (b).

4 (B) VALUE OF CERTIFICATES OR PAY5 MENTS.—The value of the marketing certifi6 cates or cash payments shall be based on the

7 amount of the difference (reduced by 1.25 cents

8 per pound) in the prices during the 4th week of

9 the consecutive 4-week period multiplied by the

10 quantity of upland cotton included in the docu11 mented sales.

12 (C) ADMINISTRATION OF MARKETING CER13 TIFICATES.—

14 (i) REDEMPTION, MARKETING, OR EX15 CHANGE.—The Secretary shall establish

16 procedures for redeeming marketing cer17 tificates for cash or marketing or exchange

18 of the certificates for agricultural commod19 ities owned by the Commodity Credit Cor20 poration in such manner, and at such price

21 levels, as the Secretary determines will best

22 effectuate the purposes of cotton user mar23 keting certificates. Any price restrictions

24 that would otherwise apply to the disposi25 tion of agricultural commodities by the
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1 Commodity Credit Corporation shall not

2 apply to the redemption of certificates

3 under this paragraph.

4 (ii) DESIGNATION OF COMMODITIES

5 AND PRODUCTS.—To the extent prac6 ticable, the Secretary shall permit owners

7 of certificates to designate the commodities

8 and products, including storage sites, the

9 owners would prefer to receive in exchange

10 for certificates. If any certificate is not

11 presented for redemption, marketing, or

12 exchange within a reasonable number of

13 days after the issuance of the certificate

14 (as determined by the Secretary), reason15 able costs of storage and other carrying

16 charges, as determined by the Secretary,

17 shall be deducted from the value of the

18 certificate for the period beginning after

19 the reasonable number of days and ending

20 with the date of the presentation of the

21 certificate to the Commodity Credit Cor22 poration.

23 (iii) TRANSFERS.—Marketing certifi24 cates issued to domestic users and export25 ers of upland cotton may be transferred to
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1 other persons in accordance with regula2 tions issued by the Secretary.

3 (D) EXCEPTION.—The Secretary shall not

4 issue marketing certificates or cash payments

5 under subparagraph (A) if, for the immediately

6 preceding consecutive 10-week period, the Fri7 day through Thursday average price quotation

8 for the lowest priced United States growth, as

quoted for Middling (M) 13 9 ⁄32-inch cotton, deliv10 ered C.I.F. Northern Europe, adjusted for the

11 value of any certificate issued under this para12 graph, exceeds the Northern Europe price by

13 more than 1.25 cents per pound.

14 (E) LIMITATION ON EXPENDITURES.—

15 Total expenditures under this paragraph shall

16 not exceed $701,000,000 during fiscal years

17 1996 through 2002.

18 (2) SPECIAL IMPORT QUOTA.—

19 (A) ESTABLISHMENT.—The President

20 shall carry out an import quota program that

21 provides that, during the period ending July 31,

22 2003, whenever the Secretary determines and

23 announces that for any consecutive 10-week pe24 riod, the Friday through Thursday average

25 price quotation for the lowest-priced United
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1 States growth, as quoted for Middling (M)

13 2 ⁄32-inch cotton, delivered C.I.F. Northern Eu3 rope, adjusted for the value of any certificates

4 issued under paragraph (1), exceeds the North5 ern Europe price by more than 1.25 cents per

6 pound, there shall immediately be in effect a

7 special import quota.

8 (B) QUANTITY.—The quota shall be equal

9 to 1 week’s consumption of upland cotton by

10 domestic mills at the seasonally adjusted aver11 age rate of the most recent 3 months for which

12 data are available.

13 (C) APPLICATION.—The quota shall apply

14 to upland cotton purchased not later than 90

15 days after the date of the Secretary’s announce16 ment under subparagraph (A) and entered into

17 the United States not later than 180 days after

18 the date.

19 (D) OVERLAP.—A special quota period

20 may be established that overlaps any existing

21 quota period if required by subparagraph (A),

22 except that a special quota period may not be

23 established under this paragraph if a quota pe24 riod has been established under subsection (g).
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1 (E) PREFERENTIAL TARIFF TREAT2 MENT.—The quantity under a special import

3 quota shall be considered to be an in-quota

4 quantity for purposes of—

5 (i) section 213(d) of the Caribbean

6 Basin Economic Recovery Act (19 U.S.C.

7 2703(d));

8 (ii) section 204 of the Andean Trade

9 Preference Act (19 U.S.C. 3203);

10 (iii) section 503(d) of the Trade Act

11 of 1974 (19 U.S.C. 2463(d)); and

12 (iv) General Note 3(a)(iv) to the Har13 monized Tariff Schedule.

14 (F) DEFINITION.—In this paragraph, the

15 term ‘‘special import quota’’ means a quantity

16 of imports that is not subject to the over-quota

17 tariff rate of a tariff-rate quota.

18 (g) LIMITED GLOBAL IMPORT QUOTA FOR UPLAND

19 COTTON.—

20 (1) IN GENERAL.—The President shall carry

21 out an import quota program that provides that

22 whenever the Secretary determines and announces

23 that the average price of the base quality of upland

24 cotton, as determined by the Secretary, in the des25 ignated spot markets for a month exceeded 130 per-
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1 cent of the average price of such quality of cotton

2 in the markets for the preceding 36 months, not3 withstanding any other provision of law, there shall

4 immediately be in effect a limited global import

5 quota subject to the following conditions:

6 (A) QUANTITY.—The quantity of the quota

7 shall be equal to 21 days of domestic mill con8 sumption of upland cotton at the seasonally ad9 justed average rate of the most recent 3 months

10 for which data are available.

11 (B) QUANTITY IF PRIOR QUOTA.—If a

12 quota has been established under this sub13 section during the preceding 12 months, the

14 quantity of the quota next established under

15 this subsection shall be the smaller of 21 days

16 of domestic mill consumption calculated under

17 subparagraph (A) or the quantity required to

18 increase the supply to 130 percent of the de19 mand.

20 (C) PREFERENTIAL TARIFF TREAT21 MENT.—The quantity under a limited global

22 import quota shall be considered to be an in23 quota quantity for purposes of—
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1 (i) section 213(d) of the Caribbean

2 Basin Economic Recovery Act (19 U.S.C.

3 2703(d));

4 (ii) section 204 of the Andean Trade

5 Preference Act (19 U.S.C. 3203);

6 (iii) section 503(d) of the Trade Act

7 of 1974 (19 U.S.C. 2463(d)); and

8 (iv) General Note 3(a)(iv) to the Har9 monized Tariff Schedule.

10 (D) DEFINITIONS.—In this subsection:

11 (i) SUPPLY.—The term ‘‘supply’’

12 means, using the latest official data of the

13 Bureau of the Census, the Department of

14 Agriculture, and the Department of the

15 Treasury—

16 (I) the carry-over of upland cot17 ton at the beginning of the marketing

18 year (adjusted to 480-pound bales) in

19 which the quota is established;

20 (II) production of the current

21 crop; and

22 (III) imports to the latest date

23 available during the marketing year.

24 (ii) DEMAND.—The term ‘‘demand’’

25 means—
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1 (I) the average seasonally ad2 justed annual rate of domestic mill

3 consumption in the most recent 3

4 months for which data are available;

5 and

6 (II) the larger of—

7 (aa) average exports of up8 land cotton during the preceding

9 6 marketing years; or

10 (bb) cumulative exports of

11 upland cotton plus outstanding

12 export sales for the marketing

13 year in which the quota is estab14 lished.

15 (iii) LIMITED GLOBAL IMPORT

16 QUOTA.—The term ‘‘limited global import

17 quota’’ means a quantity of imports that is

18 not subject to the over-quota tariff rate of

19 a tariff-rate quota.

20 (E) QUOTA ENTRY PERIOD.—When a

21 quota is established under this subsection, cot22 ton may be entered under the quota during the

23 90-day period beginning on the date the quota

24 is established by the Secretary.
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1 (2) NO OVERLAP.—Notwithstanding paragraph

2 (1), a quota period may not be established that over3 laps an existing quota period or a special quota pe4 riod established under subsection (f)(2).

5 (h) SOURCE OF LOANS.—

6 (1) IN GENERAL.—The Secretary shall provide

7 the loans authorized by this section through the

8 Commodity Credit Corporation and other means

9 available to the Secretary.

10 (2) PROCESSORS.—Whenever any loan or sur11 plus removal operation for any agricultural commod12 ity is carried out through purchases from or loans

13 or payments to processors, the Secretary shall, to

14 the extent practicable, obtain from the processors

15 such assurances as the Secretary considers adequate

16 that the producers of the commodity have received

17 or will receive maximum benefits from the loan or

18 surplus removal operation.

19 (i) ADJUSTMENTS OF LOANS.—

20 (1) IN GENERAL.—The Secretary may make

21 appropriate adjustments in the loan levels for any

22 commodity for differences in grade, type, quality, lo23 cation, and other factors.

24 (2) LOAN LEVEL.—The adjustments shall, to

25 the maximum extent practicable, be made in such
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1 manner that the average loan level for the commod2 ity will, on the basis of the anticipated incidence of

3 the factors, be equal to the level of support deter4 mined as provided in this section.

5 (j) PERSONAL LIABILITY OF PRODUCERS FOR DEFI6 CIENCIES.—

7 (1) IN GENERAL.—Except as provided in para8 graph (2), no producer shall be personally liable for

9 any deficiency arising from the sale of the collateral

10 securing any nonrecourse loan made under this sec11 tion unless the loan was obtained through a fraudu12 lent representation by the producer.

13 (2) LIMITATIONS.—Paragraph (1) shall not

14 prevent the Commodity Credit Corporation or the

15 Secretary from requiring a producer to assume li16 ability for—

17 (A) a deficiency in the grade, quality, or

18 quantity of a commodity stored on a farm or

19 delivered by the producer;

20 (B) a failure to properly care for and pre21 serve a commodity; or

22 (C) a failure or refusal to deliver a com23 modity in accordance with a program estab24 lished under this section.
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1 (3) ACQUISITION OF COLLATERAL.—The Sec2 retary may include in a contract for a nonrecourse

3 loan made under this section a provision that per4 mits the Commodity Credit Corporation, on and

5 after the maturity of the loan or any extension of

6 the loan, to acquire title to the unredeemed collat7 eral without obligation to pay for any market value

8 that the collateral may have in excess of the loan in9 debtedness.

10 (4) SUGARCANE AND SUGAR BEETS.—A secu11 rity interest obtained by the Commodity Credit Cor12 poration as a result of the execution of a security

13 agreement by the processor of sugarcane or sugar

14 beets shall be superior to all statutory and common

15 law liens on raw cane sugar and refined beet sugar

16 in favor of the producers of sugarcane and sugar

17 beets and all prior recorded and unrecorded liens on

18 the crops of sugarcane and sugar beets from which

19 the sugar was derived.

20 (k) COMMODITY CREDIT CORPORATION SALES PRICE

21 RESTRICTIONS.—

22 (1) IN GENERAL.—The Commodity Credit Cor23 poration may sell any commodity owned or con24 trolled by the Corporation at any price that the Sec-
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1 retary determines will maximize returns to the Cor2 poration.

3 (2) NONAPPLICATION OF SALES PRICE RE4 STRICTIONS.—Paragraph (1) shall not apply to—

5 (A) a sale for a new or byproduct use;

6 (B) a sale of peanuts or oilseeds for the ex7 traction of oil;

8 (C) a sale for seed or feed if the sale will

9 not substantially impair any loan program;

10 (D) a sale of a commodity that has sub11 stantially deteriorated in quality or as to which

12 there is a danger of loss or waste through dete13 rioration or spoilage;

14 (E) a sale for the purpose of establishing

15 a claim arising out of a contract or against a

16 person who has committed fraud, misrepresen17 tation, or other wrongful act with respect to the

18 commodity;

19 (F) a sale for export, as determined by the

20 Corporation; and

21 (G) a sale for other than a primary use.

22 (3) PRESIDENTIAL DISASTER AREAS.—

23 (A) IN GENERAL.—Notwithstanding para24 graph (1), on such terms and conditions as the

25 Secretary may consider in the public interest,
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1 the Corporation may make available any com2 modity or product owned or controlled by the

3 Corporation for use in relieving distress—

4 (i) in any area in the United States

5 (including the Virgin Islands) declared by

6 the President to be an acute distress area

7 because of unemployment or other eco8 nomic cause, if the President finds that the

9 use will not displace or interfere with nor10 mal marketing of agricultural commodities;

11 and

12 (ii) in connection with any major dis13 aster determined by the President to war14 rant assistance by the Federal Government

15 under the Robert T. Stafford Disaster Re16 lief and Emergency Assistance Act (42

17 U.S.C. 5121 et seq.).

18 (B) COSTS.—Except on a reimbursable

19 basis, the Corporation shall not bear any costs

20 in connection with making a commodity avail21 able under subparagraph (A) beyond the cost of

22 the commodity to the Corporation incurred in—

23 (i) the storage of the commodity; and

24 (ii) the handling and transportation

25 costs in making delivery of the commodity
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1 to designated agencies at 1 or more central

2 locations in each State or other area.

3 (4) EFFICIENT OPERATIONS.—Paragraph (1)

4 shall not apply to the sale of a commodity the dis5 position of which is desirable in the interest of the

6 effective and efficient conduct of the operations of

7 the Corporation because of the small quantity of the

8 commodity involved, or because of the age, location,

9 or questionable continued storability of the commod10 ity.

11 SEC. 105. PAYMENT LIMITATIONS.

12 (a) IN GENERAL.—Section 1001 of the Food Security

13 Act of 1985 (7 U.S.C. 1308) is amended by striking para14 graphs (1) through (4) and inserting the following:

15 ‘‘(1) LIMITATION ON PAYMENTS UNDER PRO16 DUCTION FLEXIBILITY CONTRACTS.—The total

17 amount of contract payments made under section

18 103 of the Agricultural Market Transition Act to a

19 person under 1 or more production flexibility con20 tracts during any fiscal year may not exceed

21 $40,000.

22 ‘‘(2) LIMITATION ON MARKETING LOAN GAINS

23 AND LOAN DEFICIENCY PAYMENTS.—

24 ‘‘(A) LIMITATION.—The total amount of

25 payments specified in subparagraph (B) that a
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1 person shall be entitled to receive under section

2 104 of the Agricultural Market Transition Act

3 for contract commodities and oilseeds during

4 any crop year may not exceed $75,000.

5 ‘‘(B) DESCRIPTION OF PAYMENTS.—The

6 payments referred to in subparagraph (A) are

7 the following:

8 ‘‘(i) Any gain realized by a producer

9 from repaying a marketing assistance loan

10 for a crop of any loan commodity at a

11 lower level than the original loan rate es12 tablished for the commodity under section

13 104(b) of the Act.

14 ‘‘(ii) Any loan deficiency payment re15 ceived for a loan commodity under section

16 104(e) of the Act.’’.

17 (b) CONFORMING AMENDMENTS.—

18 (1) Section 1001 of the Food Security Act of

19 1985 (7 U.S.C. 1308) (as amended by subsection

20 (a)) is amended—

21 (A) by redesignating paragraphs (5), (6),

22 and (7) as paragraphs (3), (4), and (5), respec23 tively; and

24 (B) in the second sentence of paragraph

25 (3)(A) (as so redesignated), by striking ‘‘para-
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1 graphs (6) and (7)’’ and inserting ‘‘paragraphs

2 (4) and (5)’’.

3 (2) Section 1305(d) of the Agricultural Rec4 onciliation Act of 1987 (Public Law 100–203; 7

5 U.S.C. 1308 note) is amended by striking ‘‘para6 graphs (5) through (7) of section 1001, as amended

7 by this subtitle,’’ and inserting ‘‘paragraphs (3)

8 through (5) of section 1001,’’.

9 (3) Section 1001A of the Food Security Act of

10 1985 (7 U.S.C. 1308–1(a)(1)) is amended—

11 (A) in the first sentence of subsection

12 (a)(1)—

13 (i) by striking ‘‘section 1001(5)(B)(i)’’

14 and inserting ‘‘section 1001(3)(B)(i)’’;

15 (ii) by striking ‘‘under the Agricul16 tural Act of 1949 (7 U.S.C. 1421 et

17 seq.)’’; and

18 (iii) by striking ‘‘section

19 1001(5)(B)(i)(II)’’ and inserting ‘‘section

20 1001(3)(B)(i)(II)’’; and

21 (B) in subsection (b)—

22 (i) in paragraph (1)—

23 (I) by striking ‘‘under the Agri24 cultural Act of 1949’’; and
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1 (II) by striking ‘‘section

2 1001(5)(B)(i)’’ and inserting ‘‘section

3 1001(3)(B)(i)’’; and

4 (ii) in paragraph (2)(B), by striking

5 ‘‘section 1001(5)(B)(i)(II)’’ and inserting

6 ‘‘section 1001(3)(B)(i)(II)’’.

7 (4) Section 1001C(a) of the Food Security Act

8 of 1985 (7 U.S.C. 1308–3(a)) is amended—

9 (A) by striking ‘‘For each of the 1991

10 through 1997 crops, any’’ and inserting ‘‘Any’’;

11 (B) by striking ‘‘price support program

12 loans, payments, or benefits made available

13 under the Agricultural Act of 1949 (7 U.S.C.

14 1421 et seq.),’’ and inserting ‘‘loans or pay15 ments made available under the Agricultural

16 Market Transition Act’’; and

17 (C) by striking ‘‘during the 1989 through

18 1997 crop years’’.

19 SEC. 106. PEANUT PROGRAM.

20 (a) QUOTA PEANUTS.—

21 (1) AVAILABILITY OF LOANS.—The Secretary

22 shall make nonrecourse loans available to producers

23 of quota peanuts.

24 (2) LOAN RATE.—The national average quota

25 loan rate for quota peanuts shall be $610 per ton.
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1 (3) INSPECTION, HANDLING, OR STORAGE.—

2 The loan amount may not be reduced by the Sec3 retary by any deductions for inspection, handling, or

4 storage.

5 (4) LOCATION AND OTHER FACTORS.—The Sec6 retary may make adjustments in the loan rate for

7 quota peanuts for location of peanuts and such other

8 factors as are authorized by section 104(i)(1).

9 (b) ADDITIONAL PEANUTS.—

10 (1) IN GENERAL.—The Secretary shall make

11 nonrecourse loans available to producers of addi12 tional peanuts at such rates as the Secretary finds

13 appropriate, taking into consideration the demand

14 for peanut oil and peanut meal, expected prices of

15 other vegetable oils and protein meals, and the de16 mand for peanuts in foreign markets.

17 (2) ANNOUNCEMENT.—The Secretary shall an18 nounce the loan rate for additional peanuts of each

19 crop not later than February 15 preceding the mar20 keting year for the crop for which the loan rate is

21 being determined.

22 (c) AREA MARKETING ASSOCIATIONS.—

23 (1) WAREHOUSE STORAGE LOANS.—

24 (A) IN GENERAL.—In carrying out sub25 sections (a) and (b), the Secretary shall make
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1 warehouse storage loans available in each of the

2 producing areas (described in section 1446.95

3 of title 7 of the Code of Federal Regulations

4 (January 1, 1989)) to a designated area mar5 keting association of peanut producers that is

6 selected and approved by the Secretary and

7 that is operated primarily for the purpose of

8 conducting the loan activities. The Secretary

9 may not make warehouse storage loans avail10 able to any cooperative that is engaged in oper11 ations or activities concerning peanuts other

12 than those operations and activities specified in

13 this section and section 358e of the Agricultural

14 Adjustment Act of 1938 (7 U.S.C. 1359a).

15 (B) ADMINISTRATIVE AND SUPERVISORY

16 ACTIVITIES.—An area marketing association

17 shall be used in administrative and supervisory

18 activities relating to loans and marketing activi19 ties under this section and section 358e of the

20 Agricultural Adjustment Act of 1938 (7 U.S.C.

21 1359a).

22 (C) ASSOCIATION COSTS.—Loans made to

23 the association under this paragraph shall in24 clude such costs as the area marketing associa25 tion reasonably may incur in carrying out the
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1 responsibilities, operations, and activities of the

2 association under this section and section 358e

3 of the Agricultural Adjustment Act of 1938 (7

4 U.S.C. 1359a).

5 (2) POOLS FOR QUOTA AND ADDITIONAL PEA6 NUTS.—

7 (A) IN GENERAL.—The Secretary shall re8 quire that each area marketing association es9 tablish pools and maintain complete and accu10 rate records by area and segregation for quota

11 peanuts handled under loan and for additional

12 peanuts placed under loan, except that separate

13 pools shall be established for Valencia peanuts

14 produced in New Mexico.

15 (B) ELIGIBILITY TO PARTICIPATE.—

16 (i) IN GENERAL.—Except as provided

17 in clause (ii), in the case of the 1996 and

18 subsequent crops, Valencia peanuts not

19 physically produced in the State of New

20 Mexico shall not be eligible to participate

21 in the pools of the State.

22 (ii) EXCEPTION.—A resident of the

23 State of New Mexico may enter Valencia

24 peanuts that are produced outside of the

25 State into the pools of the State in a quan-
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1 tity that is not greater than the 1995 crop

2 of the resident that was produced outside

3 the State.

4 (C) TYPES OF PEANTUS.—Bright hull and

5 dark hull Valencia peanuts shall be considered

6 as separate types for the purpose of establish7 ing the pools.

8 (D) NET GAINS.—Net gains on peanuts in

9 each pool, unless otherwise approved by the

10 Secretary, shall be distributed only to producers

11 who placed peanuts in the pool and shall be dis12 tributed in proportion to the value of the pea13 nuts placed in the pool by each producer. Net

14 gains for peanuts in each pool shall consist of

15 the following:

16 (i) QUOTA PEANUTS.—For quota pea17 nuts, the net gains over and above the loan

18 indebtedness and other costs or losses in19 curred on peanuts placed in the pool.

20 (ii) ADDITIONAL PEANUTS.—For ad21 ditional peanuts, the net gains over and

22 above the loan indebtedness and other

23 costs or losses incurred on peanuts placed

24 in the pool for additional peanuts.
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1 (d) LOSSES.—Losses in quota area pools shall be cov2 ered using the following sources in the following order of

3 priority:

4 (1) TRANSFERS FROM ADDITIONAL LOAN

5 POOLS.—The proceeds due any producer from any

6 pool shall be reduced by the amount of any loss that

7 is incurred with respect to peanuts transferred from

8 an additional loan pool to a quota loan pool by the

9 producer under section 358–1(b)(8) of the Agricul10 tural Adjustment Act of 1938 (7 U.S.C. 1358–

11 1(b)(8)).

12 (2) OTHER PRODUCERS IN SAME POOL.—Fur13 ther losses in an area quota pool shall be offset by

14 reducing the gain of any producer in the pool by the

15 amount of pool gains attributed to the same pro16 ducer from the sale of additional peanuts for domes17 tic and export edible use.

18 (3) OFFSET WITHIN AREA.—Further losses in

19 an area quota pool shall be offset by any gains or

20 profits from additional peanuts (other than separate

21 type pools established under subsection (c)(2)(A) for

22 Valencia peanuts produced in New Mexico) owned or

23 controlled by the Commodity Credit Corporation in

24 that area and sold for domestic edible use, in accord25 ance with regulations issued by the Secretary.
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1 (4) USE OF MARKETING ASSESSMENTS.—The

2 Secretary shall use funds collected under subsection

3 (g) (except funds attributable to handlers) to offset

4 further losses in area quota pools. The Secretary

5 shall transfer to the Treasury those funds collected

6 under subsection (g) and available for use under this

7 subsection that the Secretary determines are not re8 quired to cover losses in area quota pools.

9 (5) CROSS COMPLIANCE.—Further losses in

10 area quota pools, other than losses incurred as a re11 sult of transfers from additional loan pools to quota

12 loan pools under section 358–1(b)(8) of the Agricul13 tural Adjustment Act of 1938 (7 U.S.C. 1358–

14 1(b)(8)), shall be offset by any gains or profits from

15 quota pools in other production areas (other than

16 separate type pools established under subsection

17 (c)(2)(A) for Valencia peanuts produced in New

18 Mexico) in such manner as the Secretary shall by

19 regulation prescribe.

20 (6) OFFSET GENERALLY.—If losses in an area

21 quota pool have not been entirely offset under para22 graph (3), further losses shall be offset by any gains

23 or profits from additional peanuts (other than sepa24 rate type pools established under subsection

25 (c)(2)(A) for Valencia peanuts produced in New
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1 Mexico) owned or controlled by the Commodity

2 Credit Corporation and sold for domestic edible use,

3 in accordance with regulations issued by the Sec4 retary.

5 (7) INCREASED ASSESSMENTS.—If use of the

6 authorities provided in the preceding paragraphs is

7 not sufficient to cover losses in an area quota pool,

8 the Secretary shall increase the marketing assess9 ment established under subsection (g) by such an

10 amount as the Secretary considers necessary to

11 cover the losses. The increased assessment shall

12 apply only to quota peanuts in the production area

13 covered by the pool. Amounts collected under sub14 section (g) as a result of the increased assessment

15 shall be retained by the Secretary to cover losses in

16 that pool.

17 (e) DISAPPROVAL OF QUOTAS.—Notwithstanding

18 any other provision of law, no loan for quota peanuts may

19 be made available by the Secretary for any crop of peanuts

20 with respect to which poundage quotas have been dis21 approved by producers, as provided for in section 358–

22 1(d) of the Agricultural Adjustment Act of 1938 (7 U.S.C.

23 1358–1(d)).

24 (f) QUALITY IMPROVEMENT.—
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1 (1) IN GENERAL.—With respect to peanuts

2 under loan, the Secretary shall—

3 (A) promote the crushing of peanuts at a

4 greater risk of deterioration before peanuts of a

5 lesser risk of deterioration;

6 (B) ensure that all Commodity Credit Cor7 poration inventories of peanuts sold for domes8 tic edible use must be shown to have been offi9 cially inspected by licensed Department inspec10 tors both as farmer stock and shelled or cleaned

11 in-shell peanuts;

12 (C) continue to endeavor to operate the

13 peanut program so as to improve the quality of

14 domestic peanuts and ensure the coordination

15 of activities under the Peanut Administrative

16 Committee established under Marketing Agree17 ment No. 146, regulating the quality of domes18 tically produced peanuts (under the Agricul19 tural Adjustment Act (7 U.S.C. 601 et seq.),

20 reenacted with amendments by the Agricultural

21 Marketing Agreement Act of 1937); and

22 (D) ensure that any changes made in the

23 peanut program as a result of this subsection

24 requiring additional production or handling at
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1 the farm level shall be reflected as an upward

2 adjustment in the Department loan schedule.

3 (2) EXPORTS AND OTHER PEANUTS.—The Sec4 retary shall require that all peanuts in the domestic

5 and export markets fully comply with all quality

6 standards under Marketing Agreement No. 146.

7 (g) MARKETING ASSESSMENT.—

8 (1) IN GENERAL.—The Secretary shall provide

9 for a nonrefundable marketing assessment. The as10 sessment shall be made on a per pound basis in an

11 amount equal to 1.1 percent for each of the 1994

12 and 1995 crops, 1.15 percent for the 1996 crop, and

13 1.2 percent for each of the 1997 through 2002

14 crops, of the national average quota or additional

15 peanut loan rate for the applicable crop.

16 (2) FIRST PURCHASERS.—

17 (A) IN GENERAL.—Except as provided

18 under paragraphs (3) and (4), the first pur19 chaser of peanuts shall—

20 (i) collect from the producer a mar21 keting assessment equal to the quantity of

22 peanuts acquired multiplied by—

23 (I) in the case of each of the

24 1994 and 1995 crops, .55 percent of
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1 the applicable national average loan

2 rate;

3 (II) in the case of the 1996 crop,

4 .6 percent of the applicable national

5 average loan rate; and

6 (III) in the case of each of the

7 1997 through 2002 crops, .65 percent

8 of the applicable national average loan

9 rate;

10 (ii) pay, in addition to the amount col11 lected under clause (i), a marketing assess12 ment in an amount equal to the quantity

13 of peanuts acquired multiplied by .55 per14 cent of the applicable national average loan

15 rate; and

16 (iii) remit the amounts required under

17 clauses (i) and (ii) to the Commodity Cred18 it Corporation in a manner specified by the

19 Secretary.

20 (B) DEFINITION OF FIRST PURCHASER.—

21 In this subsection, the term ‘‘first purchaser’’

22 means a person acquiring peanuts from a pro23 ducer except that in the case of peanuts for24 feited by a producer to the Commodity Credit

25 Corporation, the term means the person acquir-
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1 ing the peanuts from the Commodity Credit

2 Corporation.

3 (3) OTHER PRIVATE MARKETINGS.—In the case

4 of a private marketing by a producer directly to a

5 consumer through a retail or wholesale outlet or in

6 the case of a marketing by the producer outside of

7 the continental United States, the producer shall be

8 responsible for the full amount of the assessment

9 and shall remit the assessment by such time as is

10 specified by the Secretary.

11 (4) LOAN PEANUTS.—In the case of peanuts

12 that are pledged as collateral for a loan made under

this section, 1 13 ⁄2 of the assessment shall be deducted

14 from the proceeds of the loan. The remainder of the

15 assessment shall be paid by the first purchaser of

16 the peanuts. For purposes of computing net gains on

17 peanuts under this section, the reduction in loan

18 proceeds shall be treated as having been paid to the

19 producer.

20 (5) PENALTIES.—If any person fails to collect

21 or remit the reduction required by this subsection or

22 fails to comply with the requirements for record23 keeping or otherwise as are required by the Sec24 retary to carry out this subsection, the person shall
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1 be liable to the Secretary for a civil penalty up to

2 an amount determined by multiplying—

3 (A) the quantity of peanuts involved in the

4 violation; by

5 (B) the national average quota peanut rate

6 for the applicable crop year.

7 (6) ENFORCEMENT.—The Secretary may en8 force this subsection in the courts of the United

9 States.

10 (h) CROPS.—Subsections (a) through (f) shall be ef11 fective only for the 1996 through 2002 crops of peanuts.

12 (i) MARKETING QUOTAS.—

13 (1) IN GENERAL.—Part VI of subtitle B of title

14 III of the Agricultural Adjustment Act of 1938 is

15 amended—

16 (A) in section 358–1 (7 U.S.C. 1358–1)—

17 (i) in the section heading, by striking

18 ‘‘1991 THROUGH 1997 CROPS OF’’;

19 (ii) in subsections (a)(1), (b)(1)(B),

20 (b)(2)(A), (b)(2)(C), and (b)(3)(A), by

21 striking ‘‘of the 1991 through 1997 mar22 keting years’’ each place it appears and in23 serting ‘‘marketing year’’;

24 (iii) in subsection (a)(3), by striking

25 ‘‘1990’’ and inserting ‘‘1990, for the 1991
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1 through 1995 marketing years, and 1995,

2 for the 1996 through 2002 marketing

3 years’’;

4 (iv) in subsection (b)(1)(A)—

5 (I) by striking ‘‘each of the 1991

6 through 1997 marketing years’’ and

7 inserting ‘‘each marketing year’’; and

8 (II) in clause (i), by inserting be9 fore the semicolon the following: ‘‘, in

10 the case of the 1991 through 1995

11 marketing years, and the 1995 mar12 keting year, in the case of the 1996

13 through 2002 marketing years’’;

14 (v) in subsection (b)(1), by adding at

15 the end the following:

16 ‘‘(D) CERTAIN FARMS INELIGIBLE FOR

17 QUOTA.—Effective beginning with the 1997

18 marketing year, the Secretary shall not estab19 lish a farm poundage quota under subpara20 graph (A) for a farm owned or controlled by—

21 ‘‘(i) a municipality, airport authority,

22 school, college, refuge, or other public en23 tity (other than a university used for re24 search purposes); or
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1 ‘‘(ii) a person who is not a producer

2 and resides in another State.’’;

3 (vi) in subsection (b)(2), by adding at

4 the end the following:

5 ‘‘(E) TRANSFER OF QUOTA FROM INELI6 GIBLE FARMS.—Any farm poundage quota held

7 at the end of the 1996 marketing year by a

8 farm described in paragraph (1)(D) shall be al9 located to other farms in the same State on

10 such basis as the Secretary may by regulation

11 prescribe.’’; and

12 (vii) in subsection (f), by striking

13 ‘‘1997’’ and inserting ‘‘2002’’;

14 (B) in section 358b (7 U.S.C. 1358b)—

15 (i) in the section heading, by striking

16 ‘‘1991 THROUGH 1995 CROPS OF’’; and

17 (ii) in subsection (c), by striking

18 ‘‘1995’’ and inserting ‘‘2002’’;

19 (C) in section 358c(d) (7 U.S.C.

20 1358c(d)), by striking ‘‘1995’’ and inserting

21 ‘‘2002’’; and

22 (D) in section 358e (7 U.S.C. 1359a)—

23 (i) in the section heading, by striking

24 ‘‘FOR 1991 THROUGH 1997 CROPS OF

25 PEANUTS’’; and
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1 (ii) in subsection (i), by striking

2 ‘‘1997’’ and inserting ‘‘2002’’.

3 (2) ELIMINATION OF QUOTA FLOOR.—Section

4 358–1(a)(1) of the Act (7 U.S.C. 1358–1(a)(1)) is

5 amended by striking the second sentence.

6 (3) TEMPORARY QUOTA ALLOCATION.—Section

7 358–1 of the Act (7 U.S.C. 1358–1) is amended—

8 (A) in subsection (a)(1), by striking ‘‘do9 mestic edible, seed,’’ and inserting ‘‘domestic

10 edible use’’;

11 (B) in subsection (b)(2)—

12 (i) in subparagraph (A), by striking

13 ‘‘subparagraph (B) and subject to’’; and

14 (ii) by striking subparagraph (B) and

15 inserting the following:

16 ‘‘(B) TEMPORARY QUOTA ALLOCATION.—

17 ‘‘(i) ALLOCATION RELATED TO SEED

18 PEANUTS.—Temporary allocation of quota

19 pounds for the marketing year only in

20 which the crop is planted shall be made to

21 producers for each of the 1996 through

22 2002 marketing years as provided in this

23 subparagraph.

24 ‘‘(ii) QUANTITY.—The temporary

25 quota allocation shall be equal to the
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1 pounds of seed peanuts planted on the

2 farm, as may be adjusted under regula3 tions prescribed by the Secretary.

4 ‘‘(iii) ADDITIONAL QUOTA.—The tem5 porary allocation of quota pounds under

6 this paragraph shall be in addition to the

7 farm poundage quota otherwise established

8 under this subsection and shall be credited,

9 for the applicable marketing year only, in

10 total to the producer of the peanuts on the

11 farm in a manner prescribed by the Sec12 retary.

13 ‘‘(iv) EFFECT OF OTHER REQUIRE14 MENTS.—Nothing in this section alters or

15 changes the requirements regarding the

16 use of quota and additional peanuts estab17 lished by section 358e(b).’’; and

18 (C) in subsection (e)(3), strike ‘‘and seed

19 and use on a farm’’.

20 (4) UNDERMARKETINGS.—Part VI of subtitle B

21 of title III of the Act is amended—

22 (A) in section 358–1(b) (7 U.S.C. 1358–

23 1(b))—

24 (i) in paragraph (1)(B), by striking

25 ‘‘including—’’ and clauses (i) and (ii) and
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1 inserting ‘‘including any increases resulting

2 from the allocation of quotas voluntarily

3 released for 1 year under paragraph (7).’’;

4 (ii) in paragraph (3)(B), by striking

5 ‘‘include—’’ and clauses (i) and (ii) and in6 serting ‘‘include any increase resulting

7 from the allocation of quotas voluntarily

8 released for 1 year under paragraph (7).’’;

9 and

10 (iii) by striking paragraphs (8) and

11 (9); and

12 (B) in section 358b(a) (7 U.S.C.

13 1358b(a))—

14 (i) in paragraph (1), by striking ‘‘(in15 cluding any applicable under marketings)’’

16 both places it appears;

17 (ii) in paragraph (1)(A), by striking

18 ‘‘of undermarketings and’’;

19 (iii) in paragraph (2), by striking

20 ‘‘(including any applicable under market21 ings)’’; and

22 (iv) in paragraph (3), by striking

23 ‘‘(including any applicable

24 undermarketings)’’.
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1 (5) DISASTER TRANSFERS.—Section 358–1(b)

2 of the Act (7 U.S.C. 1358–1(b)), as amended by

3 paragraph (4)(A)(iii), is further amended by adding

4 at the end the following:

5 ‘‘(8) DISASTER TRANSFERS.—

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

7 subparagraph (B), additional peanuts produced

8 on a farm from which the quota poundage was

9 not harvested and marketed because of drought,

10 flood, or any other natural disaster, or any

11 other condition beyond the control of the pro12 ducer, may be transferred to the quota loan

13 pool for pricing purposes on such basis as the

14 Secretary shall by regulation provide.

15 ‘‘(B) LIMITATION.—The poundage of pea16 nuts transferred under subparagraph (A) shall

17 not exceed the difference between—

18 ‘‘(i) the total quantity of peanuts

19 meeting quality requirements for domestic

20 edible use, as determined by the Secretary,

21 marketed from the farm; and

22 ‘‘(ii) the total farm poundage quota,

23 excluding quota pounds transferred to the

24 farm in the fall.
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1 ‘‘(C) SUPPORT RATE.—Peanuts trans2 ferred under this paragraph shall be supported

3 at not more than 70 percent of the quota sup4 port rate for the marketing years in which the

5 transfers occur. The transfers for a farm shall

6 not exceed 25 percent of the total farm quota

7 pounds, excluding pounds transferred in the

8 fall.’’.

9 SEC. 107. SUGAR PROGRAM.

10 (a) SUGARCANE.—The Secretary shall make loans

11 available to processors of domestically grown sugarcane at

12 a rate equal to 18 cents per pound for raw cane sugar.

13 (b) SUGAR BEETS.—The Secretary shall make loans

14 available to processors of domestically grown sugar beets

15 at a rate equal to 22.9 cents per pound for refined beet

16 sugar.

17 (c) TERM OF LOANS.—

18 (1) IN GENERAL.—Loans under this section

19 during any fiscal year shall be made available not

20 earlier than the beginning of the fiscal year and

21 shall mature at the earlier of—

22 (A) the end of 9 months; or

23 (B) the end of the fiscal year.

24 (2) SUPPLEMENTAL LOANS.—In the case of

25 loans made under this section in the last 3 months
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1 of a fiscal year, the processor may repledge the

2 sugar as collateral for a second loan in the subse3 quent fiscal year, except that the second loan shall—

4 (A) be made at the loan rate in effect at

5 the time the second loan is made; and

6 (B) mature in 9 months less the quantity

7 of time that the first loan was in effect.

8 (d) LOAN TYPE; PROCESSOR ASSURANCES.—

9 (1) RECOURSE LOANS.—Subject to paragraph

10 (2), the Secretary shall carry out this section

11 through the use of recourse loans.

12 (2) NONRECOURSE LOANS.—During any fiscal

13 year in which the tariff rate quota for imports of

14 sugar into the United States is established at, or is

15 increased to, a level in excess of 1,500,000 short

16 tons raw value, the Secretary shall carry out this

17 section by making available nonrecourse loans. Any

18 recourse loan previously made available by the Sec19 retary under this section during the fiscal year shall

20 be changed by the Secretary into a nonrecourse loan.

21 (3) PROCESSOR ASSURANCES.—If the Secretary

22 is required under paragraph (2) to make

23 nonrecourse loans available during a fiscal year or to

24 change recourse loans into nonrecourse loans, the

25 Secretary shall obtain from each processor that re-
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1 ceives a loan under this section such assurances as

2 the Secretary considers adequate to ensure that the

3 processor will provide payments to producers that

4 are proportional to the value of the loan received by

5 the processor for sugar beets and sugarcane deliv6 ered by producers served by the processor. The Sec7 retary may establish appropriate minimum payments

8 for purposes of this paragraph.

9 (e) MARKETING ASSESSMENT.—

10 (1) SUGARCANE.—Effective for marketings of

11 raw cane sugar during the 1996 through 2003 fiscal

12 years, the first processor of sugarcane shall remit to

13 the Commodity Credit Corporation a nonrefundable

14 marketing assessment in an amount equal to—

15 (A) in the case of marketings during fiscal

16 year 1996, 1.1 percent of the loan rate estab17 lished under subsection (a) per pound of raw

18 cane sugar, processed by the processor from do19 mestically produced sugarcane or sugarcane

20 molasses, that has been marketed (including the

21 transfer or delivery of the sugar to a refinery

22 for further processing or marketing); and

23 (B) in the case of marketings during each

24 of fiscal years 1997 through 2003, 1.375 per25 cent of the loan rate established under sub-
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1 section (a) per pound of raw cane sugar, proc2 essed by the processor from domestically pro3 duced sugarcane or sugarcane molasses, that

4 has been marketed (including the transfer or

5 delivery of the sugar to a refinery for further

6 processing or marketing).

7 (2) SUGAR BEETS.—Effective for marketings of

8 beet sugar during the 1996 through 2003 fiscal

9 years, the first processor of sugar beets shall remit

10 to the Commodity Credit Corporation a nonrefund11 able marketing assessment in an amount equal to—

12 (A) in the case of marketings during fiscal

13 year 1996, 1.1794 percent of the loan rate es14 tablished under subsection (a) per pound of

15 beet sugar, processed by the processor from do16 mestically produced sugar beets or sugar beet

17 molasses, that has been marketed; and

18 (B) in the case of marketings during each

19 of fiscal years 1997 through 2003, 1.47425

20 percent of the loan rate established under sub21 section (a) per pound of beet sugar, processed

22 by the processor from domestically produced

23 sugar beets or sugar beet molasses, that has

24 been marketed.

25 (3) COLLECTION.—
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1 (A) TIMING.—A marketing assessment re2 quired under this subsection shall be collected

3 on a monthly basis and shall be remitted to the

4 Commodity Credit Corporation not later than

5 30 days after the end of each month. Any cane

6 sugar or beet sugar processed during a fiscal

7 year that has not been marketed by September

8 30 of the year shall be subject to assessment on

9 that date. The sugar shall not be subject to a

10 second assessment at the time that it is mar11 keted.

12 (B) MANNER.—Subject to subparagraph

13 (A), marketing assessments shall be collected

14 under this subsection in the manner prescribed

15 by the Secretary and shall be nonrefundable.

16 (4) PENALTIES.—If any person fails to remit

17 the assessment required by this subsection or fails to

18 comply with such requirements for recordkeeping or

19 otherwise as are required by the Secretary to carry

20 out this subsection, the person shall be liable to the

21 Secretary for a civil penalty up to an amount deter22 mined by multiplying—

23 (A) the quantity of cane sugar or beet

24 sugar involved in the violation; by
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1 (B) the loan rate for the applicable crop of

2 sugarcane or sugar beets.

3 (5) ENFORCEMENT.—The Secretary may en4 force this subsection in a court of the United States.

5 (f) FORFEITURE PENALTY.—

6 (1) IN GENERAL.—A penalty shall be assessed

7 on the forfeiture of any sugar pledged as collateral

8 for a nonrecourse loan under this section.

9 (2) CANE SUGAR.—The penalty for cane sugar

10 shall be 1 cent per pound.

11 (3) BEET SUGAR.—The penalty for beet sugar

12 shall bear the same relation to the penalty for cane

13 sugar as the marketing assessment for sugar beets

14 bears to the marketing assessment for sugarcane.

15 (4) EFFECT OF FORFEITURE.—Any payments

16 owed producers by a processor that forfeits of any

17 sugar pledged as collateral for a nonrecourse loan

18 shall be reduced in proportion to the loan forfeiture

19 penalty incurred by the processor.

20 (g) INFORMATION REPORTING.—

21 (1) DUTY OF PROCESSORS AND REFINERS TO

22 REPORT.—A sugarcane processor, cane sugar re23 finer, and sugar beet processor shall furnish the Sec24 retary, on a monthly basis, such information as the

25 Secretary may require to administer sugar pro-
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1 grams, including the quantity of purchases of sugar2 cane, sugar beets, and sugar, and production, impor3 tation, distribution, and stock levels of sugar.

4 (2) PENALTY.—Any person willfully failing or

5 refusing to furnish the information, or furnishing

6 willfully any false information, shall be subject to a

7 civil penalty of not more than $10,000 for each such

8 violation.

9 (3) MONTHLY REPORTS.—Taking into consider10 ation the information received under paragraph (1),

11 the Secretary shall publish on a monthly basis com12 posite data on production, imports, distribution, and

13 stock levels of sugar.

14 (h) CROPS.—This section shall be effective only for

15 the 1996 through 2002 crops of sugar beets and sugar16 cane.

17 SEC. 108. ADMINISTRATION.

18 (a) COMMODITY CREDIT CORPORATION.—

19 (1) USE OF CORPORATION.—The Secretary

20 shall carry out this title through the Commodity

21 Credit Corporation.

22 (2) SALARIES AND EXPENSES.—No funds of

23 the Corporation shall be used for any salary or ex24 pense of any officer or employee of the Department

25 of Agriculture.
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1 (b) DETERMINATIONS BY SECRETARY.—A deter2 mination made by the Secretary under this title or the

3 Agricultural Adjustment Act of 1938 (7 U.S.C. 1281 et

4 seq.) shall be final and conclusive.

5 (c) REGULATIONS.—The Secretary may issue such

6 regulations as the Secretary determines necessary to carry

7 out this title.

8 SEC. 109. SUSPENSION AND REPEAL OF PERMANENT AU9 THORITIES.

10 (a) AGRICULTURAL ADJUSTMENT ACT OF 1938.—

11 (1) IN GENERAL.—The following provisions of

12 the Agricultural Adjustment Act of 1938 shall not

13 be applicable to the 1996 through 2002 crops:

14 (A) Parts II through V of subtitle B of

15 title III (7 U.S.C. 1326–1351).

16 (B) Subsections (a) through (j) of section

17 358 (7 U.S.C. 1358).

18 (C) Subsections (a) through (h) of section

19 358a (7 U.S.C. 1358a).

20 (D) Subsections (a), (b), (d), and (e) of

21 section 358d (7 U.S.C. 1359).

22 (E) Part VII of subtitle B of title III (7

23 U.S.C. 1359aa–1359jj).

24 (F) In the case of peanuts, part I of sub25 title C of title III (7 U.S.C. 1361–1368).
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1 (G) In the case of upland cotton, section

2 377 (7 U.S.C. 1377).

3 (H) Subtitle D of title III (7 U.S.C.

4 1379a–1379j).

5 (I) Title IV (7 U.S.C. 1401–1407).

6 (2) REPORTS AND RECORDS.—Effective only

7 for the 1996 through 2002 crops of peanuts, the

8 first sentence of section 373(a) of the Agricultural

9 Adjustment Act of 1938 (7 U.S.C. 1373(a)) is

10 amended by inserting before ‘‘all brokers and dealers

11 in peanuts’’ the following: ‘‘all producers engaged in

12 the production of peanuts,’’.

13 (b) AGRICULTURAL ACT OF 1949.—

14 (1) SUSPENSIONS.—The following provisions of

15 the Agricultural Act of 1949 shall not be applicable

16 to the 1996 through 2002 crops:

17 (A) Section 101 (7 U.S.C. 1441).

18 (B) Section 103(a) (7 U.S.C. 1444(a)).

19 (C) Section 105 (7 U.S.C. 1444b).

20 (D) Section 107 (7 U.S.C. 1445a).

21 (E) Section 110 (7 U.S.C. 1445e).

22 (F) Section 112 (7 U.S.C. 1445g).

23 (G) Section 115 (7 U.S.C. 1445k).

24 (H) Title III (7 U.S.C. 1447–1449).
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1 (I) Title IV (7 U.S.C. 1421–1433d), other

2 than sections 404, 406, 412, 416, and 427 (7

3 U.S.C. 1424, 1426, 1429, 1431, and 1433f).

4 (J) Title V (7 U.S.C. 1461–1469).

5 (K) Title VI (7 U.S.C. 1471–1471j).

6 (2) REPEALS.—The following provisions of the

7 Agricultural Act of 1949 are repealed:

8 (A) Section 103B (7 U.S.C. 1444–2).

9 (B) Section 108B (7 U.S.C. 1445c–3).

10 (C) Section 113 (7 U.S.C. 1445h).

11 (D) Section 114(b) (7 U.S.C. 1445j(b)).

12 (E) Sections 205, 206, and 207 (7 U.S.C.

13 1446f, 1446g, and 1446h).

14 (F) Section 406 (7 U.S.C. 1426).

15 (c) SUSPENSION OF CERTAIN QUOTA PROVISIONS.—

16 The joint resolution entitled ‘‘A joint resolution relating

17 to corn and wheat marketing quotas under the Agricul18 tural Adjustment Act of 1938, as amended’’, approved

19 May 26, 1941 (7 U.S.C. 1330 and 1340), shall not be

20 applicable to the crops of wheat planted for harvest in the

21 calendar years 1996 through 2002.

22 SEC. 110. EFFECT OF AMENDMENTS.

23 (a) EFFECT ON PRIOR CROPS.—Except as otherwise

24 specifically provided and notwithstanding any other provi25 sion of law, this title and the amendments made by this
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1 title shall not affect the authority of the Secretary to carry

2 out a price support or production adjustment program for

3 any of the 1991 through 1995 crops of an agricultural

4 commodity established under a provision of law in effect

5 immediately before the date of the enactment of this Act.

6 (b) LIABILITY.—A provision of this title or an

7 amendment made by this title shall not affect the liability

8 of any person under any provision of law as in effect be9 fore the date of the enactment of this Act.

10 TITLE II—AGRICULTURAL

11 TRADE

12 Subtitle A—Amendments to Agri13 cultural Trade Development and

14 Assistance Act of 1954 and Re15 lated Statutes

16 SEC. 201. FOOD AID TO DEVELOPING COUNTRIES.

17 (a) IN GENERAL.—Section 3 of the Agricultural

18 Trade Development and Assistance Act of 1954 (7 U.S.C.

19 1691a) is amended to read as follows:

20 ‘‘SEC. 3. FOOD AID TO DEVELOPING COUNTRIES.

21 ‘‘(a) POLICY.—In light of the Uruguay Round Agree22 ment on Agriculture and the Ministerial Decision on

23 Measures Concerning the Possible Negative Effects of the

24 Reform Program on Least-Developed and Net-Food Im25 porting Developing Countries, the United States reaffirms
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1 the commitment of the United States to providing food

2 aid to developing countries.

3 ‘‘(b) SENSE OF CONGRESS.—It is the sense of Con4 gress that—

5 ‘‘(1) the President should initiate consultations

6 with other donor nations to consider appropriate lev7 els of food aid commitments to meet the legitimate

8 needs of developing countries; and

9 ‘‘(2) the United States should increase its con10 tribution of bona fide food assistance to developing

11 countries consistent with the Agreement on Agri12 culture.’’.

13 (b) CONFORMING AMENDMENT.—Section 411 of the

14 Uruguay Round Agreements Act (19 U.S.C. 3611) is

15 amended by striking subsection (e).

16 SEC. 202. TRADE AND DEVELOPMENT ASSISTANCE.

17 Section 101 of the Agricultural Trade Development

18 and Assistance Act of 1954 (7 U.S.C. 1701) is amended—

19 (1) by striking ‘‘developing countries’’ each

20 place it appears and inserting ‘‘developing countries

21 and private entities’’; and

22 (2) in subsection (b), by inserting ‘‘and enti23 ties’’ before the period at the end.
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1 SEC. 203. AGREEMENTS REGARDING ELIGIBLE COUNTRIES

2 AND PRIVATE ENTITIES.

3 Section 102 of the Agricultural Trade Development

4 and Assistance Act of 1954 (7 U.S.C. 1702) is amended

5 to read as follows:

6 ‘‘SEC. 102. AGREEMENTS REGARDING ELIGIBLE COUNTRIES

7 AND PRIVATE ENTITIES.

8 ‘‘(a) PRIORITY.—In selecting agreements to be en9 tered into under this title, the Secretary shall give priority

10 to agreements providing for the export of agricultural

11 commodities to developing countries that—

12 ‘‘(1) have the demonstrated potential to become

13 commercial markets for competitively priced United

14 States agricultural commodities;

15 ‘‘(2) are undertaking measures for economic de16 velopment purposes to improve food security and ag17 ricultural development, alleviate poverty, and pro18 mote broad-based equitable and sustainable develop19 ment; and

20 ‘‘(3) demonstrate the greatest need for food.

21 ‘‘(b) PRIVATE ENTITIES.—An agreement entered

22 into under this title with a private entity shall require such

23 security, or such other provisions as the Secretary deter24 mines necessary, to provide reasonable and adequate as25 surance of repayment of the financing extended to the pri26 vate entity.
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1 ‘‘(c) AGRICULTURAL MARKET DEVELOPMENT

2 PLAN.—

3 ‘‘(1) DEFINITION OF AGRICULTURAL TRADE

4 ORGANIZATION.—In this subsection, the term ‘agri5 cultural trade organization’ means a United States

6 agricultural trade organization that promotes the ex7 port and sale of a United States agricultural com8 modity and that does not stand to profit directly

9 from the specific sale of the commodity.

10 ‘‘(2) PLAN.—The Secretary shall consider a de11 veloping country for which an agricultural market

12 development plan has been approved under this sub13 section to have the demonstrated potential to become

14 a commercial market for competitively priced United

15 States agricultural commodities for the purpose of

16 granting a priority under subsection (a).

17 ‘‘(3) REQUIREMENTS.—

18 ‘‘(A) IN GENERAL.—To be approved by the

19 Secretary, an agricultural market development

20 plan shall—

21 ‘‘(i) be submitted by a developing

22 country or private entity, in conjunction

23 with an agricultural trade organization;

24 ‘‘(ii) describe a project or program for

25 the development and expansion of a United
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1 States agricultural commodity market in a

2 developing country, and the economic de3 velopment of the country, using funds de4 rived from the sale of agricultural com5 modities received under an agreement de6 scribed in section 101;

7 ‘‘(iii) provide for any matching funds

8 that are required by the Secretary for the

9 project or program;

10 ‘‘(iv) provide for a results-oriented

11 means of measuring the success of the

12 project or program; and

13 ‘‘(v) provide for graduation to the use

14 of non-Federal funds to carry out the

15 project or program, consistent with re16 quirements established by the Secretary.

17 ‘‘(B) AGRICULTURAL TRADE ORGANIZA18 TION.—The project or program shall be de19 signed and carried out by the agricultural trade

20 organization.

21 ‘‘(C) ADDITIONAL REQUIREMENTS.—An

22 agricultural market development plan shall con23 tain such additional requirements as are deter24 mined necessary by the Secretary.

25 ‘‘(4) ADMINISTRATIVE COSTS.—
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1 ‘‘(A) IN GENERAL.—The Secretary shall

2 make funds made available to carry out this

3 title available for the reimbursement of admin4 istrative expenses incurred by agricultural trade

5 organizations in developing, implementing, and

6 administering agricultural market development

7 plans, subject to such requirements and in such

8 amounts as the Secretary considers appropriate.

9 ‘‘(B) DURATION.—The funds shall be

10 made available to agricultural trade organiza11 tions for the duration of the applicable agricul12 tural market development plan.

13 ‘‘(C) TERMINATION.—The Secretary may

14 terminate assistance made available under this

15 subsection if the agricultural trade organization

16 is not carrying out the approved agricultural

17 market development plan.’’.

18 SEC. 204. TERMS AND CONDITIONS OF SALES.

19 Section 103 of the Agricultural Trade Development

20 and Assistance Act of 1954 (7 U.S.C. 1703) is amended—

21 (1) in subsection (a)(2)(A)—

22 (A) by striking ‘‘a recipient country to

23 make’’; and

24 (B) by striking ‘‘such country’’ and insert25 ing ‘‘the appropriate country’’;
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1 (2) in subsection (c), by striking ‘‘less than 10

2 nor’’; and

3 (3) in subsection (d)—

4 (A) by striking ‘‘recipient country’’ and in5 serting ‘‘developing country or private entity’’;

6 and

7 (B) by striking ‘‘7’’ and inserting ‘‘5’’.

8 SEC. 205. USE OF LOCAL CURRENCY PAYMENT.

9 Section 104 of the Agricultural Trade Development

10 and Assistance Act of 1954 (7 U.S.C. 1704) is amended—

11 (1) in subsection (a), by striking ‘‘recipient

12 country’’ and inserting ‘‘developing country or pri13 vate entity’’; and

14 (2) in subsection (c)—

15 (A) by striking ‘‘recipient country’’ each

16 place it appears and inserting ‘‘appropriate de17 veloping country’’; and

18 (B) in paragraph (3), by striking ‘‘recipi19 ent countries’’ and inserting ‘‘appropriate devel20 oping countries’’.

21 SEC. 206. VALUE-ADDED FOODS.

22 Section 105 of the Agricultural Trade Development

23 and Assistance Act of 1954 (7 U.S.C. 1705) is repealed.
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1 SEC. 207. ELIGIBLE ORGANIZATIONS.

2 (a) IN GENERAL.—Section 202 of the Agricultural

3 Trade Development and Assistance Act of 1954 (7 U.S.C.

4 1722) is amended—

5 (1) by striking subsection (b) and inserting the

6 following:

7 ‘‘(b) NONEMERGENCY ASSISTANCE.—

8 ‘‘(1) IN GENERAL.—The Administrator may

9 provide agricultural commodities for nonemergency

10 assistance under this title through eligible organiza11 tions (as described in subsection (d)) that have en12 tered into an agreement with the Administrator to

13 use the commodities in accordance with this title.

14 ‘‘(2) LIMITATION.—The Administrator may not

15 deny a request for funds submitted under this sub16 section because the program for which the funds are

17 requested—

18 ‘‘(A) would be carried out by the eligible

19 organization in a foreign country in which the

20 Agency for International Development does not

21 have a mission, office, or other presence; or

22 ‘‘(B) is not part of a development plan for

23 the country prepared by the Agency.’’; and

24 (2) in subsection (e)—

25 (A) in the subsection heading, by striking

26 ‘‘PRIVATE VOLUNTARY ORGANIZATIONS AND
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1 COOPERATIVES’’ and inserting ‘‘ELIGIBLE OR2 GANIZATIONS’’;

3 (B) in paragraph (1)—

4 (i) by striking ‘‘$13,500,000’’ and in5 serting ‘‘$28,000,000’’; and

6 (ii) by striking ‘‘private voluntary or7 ganizations and cooperatives to assist such

8 organizations and cooperatives’’ and insert9 ing ‘‘eligible organizations described in

10 subsection (d), to assist the organizations’’;

11 (C) by striking paragraph (2) and insert12 ing the following:

13 ‘‘(2) REQUEST FOR FUNDS.—To receive funds

14 made available under paragraph (1), a private vol15 untary organization or cooperative shall submit a re16 quest for the funds that is subject to approval by the

17 Administrator.’’; and

18 (D) in paragraph (3), by striking ‘‘a pri19 vate voluntary organization or cooperative, the

20 Administrator may provide assistance to that

21 organization or cooperative’’ and inserting ‘‘an

22 eligible organization, the Administrator may

23 provide assistance to the eligible organization’’.
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1 (b) CONFORMING AMENDMENTS.—Section 207 of the

2 Agricultural Trade Development and Assistance Act of

3 1954 (7 U.S.C. 1726a) is amended—

4 (1) in subsection (a), by striking ‘‘a private vol5 untary organization or cooperative’’ and inserting

6 ‘‘an eligible organization’’; and

7 (2) in subsection (b)—

8 (A) in paragraph (1), by striking ‘‘private

9 voluntary organizations and cooperatives’’ and

10 inserting ‘‘eligible organizations’’; and

11 (B) in paragraph (2), by striking ‘‘organi12 zations, cooperatives,’’ and inserting ‘‘eligible

13 organizations’’.

14 SEC. 208. GENERATION AND USE OF FOREIGN CUR15 RENCIES.

16 Section 203 of the Agricultural Trade Development

17 and Assistance Act of 1954 (7 U.S.C. 1723) is amended—

18 (1) in subsection (a), by inserting ‘‘, or in a

19 country in the same region,’’ after ‘‘in the recipient

20 country’’;

21 (2) in subsection (b)—

22 (A) by inserting ‘‘or in countries in the

23 same region,’’ after ‘‘in recipient countries,’’;

24 and
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1 (B) by striking ‘‘10 percent’’ and inserting

2 ‘‘15 percent’’;

3 (3) in subsection (c), by inserting ‘‘or in a

4 country in the same region,’’ after ‘‘in the recipient

5 country,’’; and

6 (4) in subsection (d)(2), by inserting ‘‘or within

7 a country in the same region’’ after ‘‘within the re8 cipient country’’.

9 SEC. 209. GENERAL LEVELS OF ASSISTANCE UNDER PUB10 LIC LAW 480.

11 Section 204(a) of the Agricultural Trade Develop12 ment and Assistance Act of 1954 (7 U.S.C. 1724(a)) is

13 amended—

14 (1) in paragraph (1), by striking ‘‘amount

15 that’’ and all that follows through the period at the

16 end and inserting ‘‘amount that for each of fiscal

17 years 1996 through 2002 is not less than 2,025,000

18 metric tons.’’;

19 (2) in paragraph (2), by striking ‘‘amount

20 that’’ and all that follows through the period at the

21 end and inserting ‘‘amount that for each of fiscal

22 years 1996 through 2002 is not less than 1,550,000

23 metric tons.’’; and
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1 (3) in paragraph (3), by adding at the end the

2 following: ‘‘No waiver shall be made before the be3 ginning of the applicable fiscal year.’’.

4 SEC. 210. FOOD AID CONSULTATIVE GROUP.

5 Section 205 of the Agricultural Trade Development

6 and Assistance Act of 1954 (7 U.S.C. 1725) is amended—

7 (1) in subsection (a), by striking ‘‘private vol8 untary organizations, cooperatives and indigenous

9 non-governmental organizations’’ and inserting ‘‘eli10 gible organizations described in section 202(d)(1)’’;

11 (2) in subsection (b)—

12 (A) in paragraph (2), by striking ‘‘for

13 International Affairs and Commodity Pro14 grams’’ and inserting ‘‘of Agriculture for Farm

15 and Foreign Agricultural Services’’;

16 (B) in paragraph (4), by striking ‘‘and’’ at

17 the end;

18 (C) in paragraph (5), by striking the pe19 riod at the end and inserting ‘‘; and’’; and

20 (D) by adding at the end the following:

21 ‘‘(6) representatives from agricultural producer

22 groups in the United States.’’;

23 (3) in the second sentence of subsection (d), by

24 inserting ‘‘(but at least twice per year)’’ after ‘‘when

25 appropriate’’; and
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1 (4) in subsection (f), by striking ‘‘1995’’ and

2 inserting ‘‘2002’’.

3 SEC. 211. SUPPORT OF NONGOVERNMENTAL ORGANIZA4 TIONS.

5 (a) IN GENERAL.—Section 306(b) of the Agricultural

6 Trade Development and Assistance Act of 1954 (7 U.S.C.

7 1727e(b)) is amended—

8 (1) in the subsection heading, by striking ‘‘IN9 DIGENOUS NON-GOVERNMENTAL’’ and inserting

10 ‘‘NONGOVERNMENTAL’’; and

11 (2) by striking ‘‘utilization of indigenous’’ and

12 inserting ‘‘utilization of’’.

13 (b) CONFORMING AMENDMENT.—Section 402 of the

14 Agricultural Trade Development and Assistance Act of

15 1954 (7 U.S.C. 1732) is amended by striking paragraph

16 (6) and inserting the following:

17 ‘‘(6) NONGOVERNMENTAL ORGANIZATION.—

18 The term ‘nongovernmental organization’ means an

19 organization that works at the local level to solve de20 velopment problems in a foreign country in which

21 the organization is located, except that the term

22 does not include an organization that is primarily an

23 agency or instrumentality of the government of the

24 foreign country.’’.
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1 SEC. 212. COMMODITY DETERMINATIONS.

2 Section 401 of the Agricultural Trade Development

3 and Assistance Act of 1954 (7 U.S.C. 1731) is amended—

4 (1) by striking subsections (a) through (d) and

5 inserting the following:

6 ‘‘(a) AVAILABILITY OF COMMODITIES.—No agricul7 tural commodity shall be available for disposition under

8 this Act if the Secretary determines that the disposition

9 would reduce the domestic supply of the commodity below

10 the supply needed to meet domestic requirements and pro11 vide adequate carryover (as determined by the Secretary),

12 unless the Secretary determines that some part of the sup13 ply should be used to carry out urgent humanitarian pur14 poses under this Act.’’;

15 (2) by redesignating subsections (e) and (f) as

16 subsections (b) and (c), respectively; and

17 (3) in subsection (c) (as so redesignated), by

18 striking ‘‘(e)(1)’’ and inserting ‘‘(b)(1)’’.

19 SEC. 213. GENERAL PROVISIONS.

20 Section 403 of the Agricultural Trade Development

21 and Assistance Act of 1954 (7 U.S.C. 1733) is amended—

22 (1) in subsection (b)—

23 (A) in the subsection heading, by striking

24 ‘‘CONSULTATIONS’’ and inserting ‘‘IMPACT ON

25 LOCAL FARMERS AND ECONOMY’’; and
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1 (B) by striking ‘‘consult with’’ and all that

2 follows through ‘‘other donor organizations to’’;

3 (2) in subsection (c)—

4 (A) by striking ‘‘from countries’’; and

5 (B) by striking ‘‘for use’’ and inserting ‘‘or

6 use’’;

7 (3) in subsection (f)—

8 (A) by inserting ‘‘or private entities, as ap9 propriate,’’ after ‘‘from countries’’; and

10 (B) by inserting ‘‘or private entities’’ after

11 ‘‘such countries’’; and

12 (4) in subsection (i)(2), by striking subpara13 graph (C).

14 SEC. 214. AGREEMENTS.

15 Section 404 of the Agricultural Trade Development

16 and Assistance Act of 1954 (7 U.S.C. 1734) is amended—

17 (1) in subsection (a), by inserting ‘‘with foreign

18 countries’’ after ‘‘Before entering into agreements’’;

19 (2) in subsection (b)(2)—

20 (A) by inserting ‘‘with foreign countries’’

21 after ‘‘with respect to agreements entered into’’;

22 and

23 (B) by inserting before the semicolon at

24 the end the following: ‘‘and broad-based eco25 nomic growth’’; and
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1 (3) in subsection (c), by striking paragraph (1)

2 and inserting the following:

3 ‘‘(1) IN GENERAL.—Agreements to provide as4 sistance on a multi-year basis to recipient countries

5 or to eligible organizations—

6 ‘‘(A) may be made available under titles I

7 and III; and

8 ‘‘(B) shall be made available under title

9 II.’’.

10 SEC. 215. USE OF COMMODITY CREDIT CORPORATION.

11 Section 406 of the Agricultural Trade Development

12 and Assistance Act of 1954 (7 U.S.C. 1736) is amended—

13 (1) in subsection (a), by striking ‘‘shall’’ and

14 inserting ‘‘may’’; and

15 (2) in subsection (b)—

16 (A) by inserting ‘‘titles II and III of’’ after

17 ‘‘commodities made available under’’; and

18 (B) by striking paragraph (4) and insert19 ing the following:

20 ‘‘(4) the vessel freight charges from United

21 States ports or designated Canadian transshipment

22 ports, as determined by the Secretary, to designated

23 ports of entry abroad;’’.
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1 SEC. 216. ADMINISTRATIVE PROVISIONS.

2 Section 407 of the Agricultural Trade Development

3 and Assistance Act of 1954 (7 U.S.C. 1736a) is amend4 ed—

5 (1) in subsection (a)—

6 (A) in paragraph(1), by inserting ‘‘or pri7 vate entity that enters into an agreement under

8 title I’’ after ‘‘importing country’’; and

9 (B) in paragraph (2), by adding at the end

10 the following: ‘‘Resulting contracts may contain

11 such terms and conditions as the Secretary de12 termines are necessary and appropriate.’’;

13 (2) in subsection (c)—

14 (A) in paragraph (1)(A), by inserting ‘‘im15 porter or’’ before ‘‘importing country’’; and

16 (B) in paragraph (2)(A), by inserting ‘‘im17 porter or’’ before ‘‘importing country’’;

18 (3) in subsection (d)—

19 (A) by striking paragraph (2) and insert20 ing the following:

21 ‘‘(2) FREIGHT PROCUREMENT.—Notwithstand22 ing the Federal Property and Administrative Serv23 ices Act of 1949 (40 U.S.C. 471 et seq.) or other

24 similar provisions of law relating to the making or

25 performance of Federal Government contracts, ocean

26 transportation under titles II and III may be pro-
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1 cured on the basis of such full and open competitive

2 procedures. Resulting contracts may contain such

3 terms and conditions, as the Administrator deter4 mines are necessary and appropriate.’’; and

5 (B) by striking paragraph (4);

6 (4) in subsection (g)(2)—

7 (A) in subparagraph (B), by striking

8 ‘‘and’’ at the end;

9 (B) in subparagraph (C), by striking the

10 period at the end and inserting ‘‘; and’’; and

11 (C) by adding at the end the following:

12 ‘‘(D) an assessment of the progress to13 wards achieving food security in each country

14 receiving food assistance from the United

15 States Government, with special emphasis on

16 the nutritional status of the poorest populations

17 in each country.’’; and

18 (5) by striking subsection (h).

19 SEC. 217. EXPIRATION DATE.

20 Section 408 of the Agricultural Trade Development

21 and Assistance Act of 1954 (7 U.S.C. 1736b) is amended

22 by striking ‘‘1995’’ and inserting ‘‘2002’’.

23 SEC. 218. REGULATIONS.

24 Section 409 of the Agricultural Trade Development

25 and Assistance Act of 1954 (7 U.S.C. 1736c) is repealed.
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1 SEC. 219. INDEPENDENT EVALUATION OF PROGRAMS.

2 Section 410 of the Agricultural Trade Development

3 and Assistance Act of 1954 (7 U.S.C. 1736d) is repealed.

4 SEC. 220. AUTHORIZATION OF APPROPRIATIONS.

5 Section 412 of the Agricultural Trade Development

6 and Assistance Act of 1954 (7 U.S.C. 1736f) is amend7 ed—

8 (1) by striking subsections (b) and (c) and in9 serting the following:

10 ‘‘(b) TRANSFER OF FUNDS.—Notwithstanding any

11 other provision of law, the President may direct that—

12 ‘‘(1) up to 15 percent of the funds available for

13 any fiscal year for carrying out any title of this Act

14 be used to carry out any other title of this Act; and

15 ‘‘(2) any funds available for title III be used to

16 carry out title II.’’; and

17 (2) by redesignating subsections (d) and (e) as

18 subsections (c) and (d), respectively.

19 SEC. 221. COORDINATION OF FOREIGN ASSISTANCE PRO20 GRAMS.

21 Section 413 of the Agricultural Trade Development

22 and Assistance Act of 1954 (7 U.S.C. 1736g) is amended

23 by inserting ‘‘title III of’’ before ‘‘this Act’’ each place it

24 appears.
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1 SEC. 222. MICRONUTRIENT FORTIFICATION PILOT PRO2 GRAM.

3 Title IV of the Agricultural Trade Development and

4 Assistance Act of 1954 (7 U.S.C. 1731 et seq.) is amended

5 by adding at the end the following:

6 ‘‘SEC. 415. MICRONUTRIENT FORTIFICATION PILOT PRO7 GRAM.

8 ‘‘(a) IN GENERAL.—Not later than September 30,

9 1997, the Secretary, in consultation with the Adminis10 trator, shall establish a micronutrient fortification pilot

11 program under this Act. The purposes of the program

12 shall be to—

13 ‘‘(1) assist developing countries in correcting

14 micronutrient dietary deficiencies among segments

15 of the populations of the countries; and

16 ‘‘(2) encourage the development of technologies

17 for the fortification of whole grains and other com18 modities that are readily transferable to developing

19 countries.

20 ‘‘(b) SELECTION OF PARTICIPATING COUNTRIES.—

21 From among the countries eligible for assistance under

22 this Act, the Secretary may select not more than 5 devel23 oping countries to participate in the pilot program.

24 ‘‘(c) FORTIFICATION.—Under the pilot program,

25 whole grains and other commodities made available to a

26 developing country selected to participate in the pilot pro-
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1 gram may be fortified with 1 or more micronutrients (in2 cluding vitamin A, iron, and iodine) with respect to which

3 a substantial portion of the population in the country are

4 deficient. The commodity may be fortified in the United

5 States or in the developing country.

6 ‘‘(d) TERMINATION OF AUTHORITY.—The authority

7 to carry out the pilot program established under this sec8 tion shall terminate on September 30, 2002.’’.

9 SEC. 223. USE OF CERTAIN LOCAL CURRENCY.

10 Title IV of the Agricultural Trade Development and

11 Assistance Act of 1954 (7 U.S.C. 1731 et seq.) (as amend12 ed by section 222) is further amended by adding at the

13 end the following:

14 ‘‘SEC. 416. USE OF CERTAIN LOCAL CURRENCY.

15 ‘‘Local currency payments received by the United

16 States pursuant to agreements entered into under title I

17 (as in effect on November 27, 1990) may be utilized by

18 the Secretary in accordance with section 108 (as in effect

19 on November 27, 1990).’’.

20 SEC. 224. LEVELS OF ASSISTANCE UNDER FARMER-TO21 FARMER PROGRAM.

22 Section 501 of the Agricultural Trade Development

23 and Assistance Act of 1954 (7 U.S.C. 1737) is amended—

24 (1) in subsection (a)—
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1 (A) by redesignating paragraphs (4)

2 through (6) as paragraphs (5) through (7), re3 spectively; and

4 (B) by inserting after paragraph (3) the

5 following:

6 ‘‘(4) assist the travel of farmers and other agri7 cultural professionals from developing countries,

8 middle income countries, and emerging democracies

9 to the United States for educational purposes con10 sistent with the objectives of this section;’’; and

11 (2) in subsection (c), by striking ‘‘1991 through

12 1995’’ and inserting ‘‘1996 through 2002’’.

13 SEC. 225. FOOD SECURITY COMMODITY RESERVE.

14 (a) IN GENERAL.—Title III of the Agricultural Act

15 of 1980 (7 U.S.C. 1736f–1 et seq.) is amended to read

16 as follows:

17 ‘‘TITLE III—FOOD SECURITY

18 COMMODITY RESERVE

19 ‘‘SEC. 301. SHORT TITLE.

20 ‘‘This title may be cited as the ‘Food Security Com21 modity Reserve Act of 1996’.

22 ‘‘SEC. 302. ESTABLISHMENT OF COMMODITY RESERVE.

23 ‘‘(a) IN GENERAL.—To provide for a reserve solely

24 to meet emergency humanitarian food needs in developing

25 countries, the Secretary of Agriculture (referred to in this
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1 title as the ‘Secretary’) shall establish a reserve stock of

2 wheat, rice, corn, or sorghum, or any combination of the

3 commodities, totalling not more than 4,000,000 metric

4 tons for use as described in subsection (c).

5 ‘‘(b) COMMODITIES IN RESERVE.—

6 ‘‘(1) IN GENERAL.—The reserve established

7 under this section shall consist of—

8 ‘‘(A) wheat in the reserve established

9 under the Food Security Wheat Reserve Act of

10 1980 as of the effective date of the Agricultural

11 Reform and Improvement Act of 1996;

12 ‘‘(B) wheat, rice, corn, and sorghum (re13 ferred to in this section as ‘eligible commod14 ities’) acquired in accordance with paragraph

15 (2) to replenish eligible commodities released

16 from the reserve, including wheat to replenish

17 wheat released from the reserve established

18 under the Food Security Wheat Reserve Act of

19 1980 but not replenished as of the effective

20 date of the Agricultural Reform and Improve21 ment Act of 1996; and

22 ‘‘(C) such rice, corn, and sorghum as the

23 Secretary may, at such time and in such man24 ner as the Secretary determines appropriate,

25 acquire as a result of exchanging an equivalent
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1 value of wheat in the reserve established under

2 this section.

3 ‘‘(2) REPLENISHMENT OF RESERVE.—

4 ‘‘(A) IN GENERAL.—Subject to subsection

5 (i), commodities of equivalent value to eligible

6 commodities in the reserve established under

7 this section may be acquired—

8 ‘‘(i) through purchases—

9 ‘‘(I) from producers; or

10 ‘‘(II) in the market, if the Sec11 retary determines that the purchases

12 will not unduly disrupt the market; or

13 ‘‘(ii) by designation by the Secretary

14 of stocks of eligible commodities of the

15 Commodity Credit Corporation.

16 ‘‘(B) FUNDS.—Any use of funds to acquire

17 eligible commodities through purchases from

18 producers or in the market to replenish the re19 serve must be authorized in an appropriation

20 Act.

21 ‘‘(c) RELEASE OF ELIGIBLE COMMODITIES.—

22 ‘‘(1) EMERGENCY FOOD ASSISTANCE.—Not23 withstanding any other law, eligible commodities

24 designated or acquired for the reserve established

25 under this section may be released by the Secretary
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1 to provide, on a donation or sale basis, emergency

2 food assistance to developing countries at such time

3 as the domestic supply of the eligible commodities is

4 so limited that quantities of the eligible commodities

5 cannot be made available for disposition under the

6 Agricultural Trade Development and Assistance Act

7 of 1954 (7 U.S.C. 1691 et seq.) (other than disposi8 tion for urgent humanitarian purposes under section

9 401 of the Act (7 U.S.C. 1731)).

10 ‘‘(2) PROVISION OF URGENT HUMANITARIAN

11 RELIEF.—

12 ‘‘(A) IN GENERAL.—Notwithstanding para13 graph (1), eligible commodities may be released

14 from the reserve established under this section

15 for any fiscal year, without regard to the avail16 ability of domestic supply, for use under title II

17 of the Agricultural Trade Development Assist18 ance Act of 1954 (7 U.S.C. 1721 et seq.) in

19 providing urgent humanitarian relief in any de20 veloping country suffering a major disaster (as

21 determined by the Secretary) in accordance

22 with this paragraph.

23 ‘‘(B) EXCEPTIONAL NEED.—If the eligible

24 commodities needed for relief cannot be made

25 available for relief in a timely manner under the
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1 normal means of obtaining eligible commodities

2 for food assistance because of circumstances of

3 unanticipated and exceptional need, up to

4 500,000 metric tons of eligible commodities

5 may be released under subparagraph (A).

6 ‘‘(C) FUNDS.—If the Secretary certifies

7 that the funds made available for a fiscal year

8 to carry out title II of the Agricultural Trade

9 Development and Assistance Act of 1954 (7

10 U.S.C. 1721 et seq.) are not less than the funds

11 made available for the previous fiscal year, up

12 to 1,000,000 metric tons of eligible commodities

13 may be released under subparagraph (A).

14 ‘‘(D) WAIVER OF MINIMUM TONNAGE RE15 QUIREMENTS.—Nothing in this paragraph shall

16 require the exercise of the waiver under section

17 204(a)(3) of the Agricultural Trade Develop18 ment and Assistance Act of 1954 (7 U.S.C.

19 5624(a)(3)) as a prerequisite for the release of

20 eligible commodities under this paragraph.

21 ‘‘(E) LIMITATION.—The quantity of eligi22 ble commodities released under this paragraph

23 may not exceed 1,000,000 metric tons in any

24 fiscal year.
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1 ‘‘(3) PROCESSING OF ELIGIBLE COMMOD2 ITIES.—Eligible commodities that are released from

3 the reserve established under this section may be

4 processed in the United States and shipped to a de5 veloping country when conditions in the recipient

6 country require processing.

7 ‘‘(4) EXCHANGE.—The Secretary may exchange

8 an eligible commodity for another United States

9 commodity of equal value, including powdered milk,

10 pulses, and vegetable oil.

11 ‘‘(d) USE OF ELIGIBLE COMMODITIES.—Eligible

12 commodities that are released from the reserve established

13 under this section for the purpose of subsection (c) shall

14 be made available under the Agricultural Trade Develop15 ment and Assistance Act of 1954 (7 U.S.C. 1691 et seq.)

16 to meet famine or other urgent or extraordinary relief

17 needs, except that section 401 of the Act (7 U.S.C. 1731),

18 with respect to determinations of availability, shall not be

19 applicable to the release.

20 ‘‘(e) MANAGEMENT OF ELIGIBLE COMMODITIES.—

21 The Secretary shall provide—

22 ‘‘(1) for the management of eligible commod23 ities in the reserve established under this section as

24 to location and quality of eligible commodities need25 ed to meet emergency situations; and
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1 ‘‘(2) for the periodic rotation or replacement of

2 stocks of eligible commodities in the reserve to avoid

3 spoilage and deterioration of the commodities.

4 ‘‘(f) TREATMENT OF RESERVE UNDER OTHER

5 LAW.—Eligible commodities in the reserve established

6 under this section shall not be—

7 ‘‘(1) considered a part of the total domestic

8 supply (including carryover) for the purpose of sub9 section (c) or for the purpose of administering the

10 Agricultural Trade Development and Assistance Act

11 of 1954 (7 U.S.C. 1691 et seq.); and

12 ‘‘(2) subject to any quantitative limitation on

13 exports that may be imposed under section 7 of the

14 Export Administration Act of 1979 (50 U.S.C. App.

15 2406).

16 ‘‘(g) USE OF COMMODITY CREDIT CORPORATION.—

17 ‘‘(1) IN GENERAL.—Subject to the limitations

18 provided in this section, the funds, facilities, and au19 thorities of the Commodity Credit Corporation shall

20 be used by the Secretary in carrying out this section,

21 except that any restriction applicable to the acquisi22 tion, storage, or disposition of eligible commodities

23 owned or controlled by the Commodity Credit Cor24 poration shall not apply.

25 ‘‘(2) REIMBURSEMENT.—
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1 ‘‘(A) IN GENERAL.—The Commodity Cred2 it Corporation shall be reimbursed for the re3 lease of eligible commodities from funds made

4 available to carry out the Agricultural Trade

5 Development and Assistance Act of 1954 (7

6 U.S.C. 1691 et seq.).

7 ‘‘(B) BASIS FOR REIMBURSEMENT.—The

8 reimbursement shall be made on the basis of

9 the lesser of—

10 ‘‘(i) the actual costs incurred by the

11 Commodity Credit Corporation with re12 spect to the eligible commodity; or

13 ‘‘(ii) the export market price of the el14 igible commodity (as determined by the

15 Secretary) as of the time the eligible com16 modity is released from the reserve for the

17 purpose.

18 ‘‘(C) SOURCE OF FUNDS.—The reimburse19 ment may be made from funds appropriated for

20 the purpose of reimbursement in subsequent fis21 cal years.

22 ‘‘(h) FINALITY OF DETERMINATION.—Any deter23 mination by the Secretary under this section shall be final.

24 ‘‘(i) TERMINATION OF AUTHORITY.—
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1 ‘‘(1) IN GENERAL.—The authority to replenish

2 stocks of eligible commodities to maintain the re3 serve established under this section shall terminate

4 on September 30, 2002.

5 ‘‘(2) DISPOSAL OF ELIGIBLE COMMODITIES.—

6 Eligible commodities remaining in the reserve after

7 September 30, 2002, shall be disposed of by release

8 for use in providing for emergency humanitarian

9 food needs in developing countries as provided in

10 this section.’’.

11 (b) CONFORMING AMENDMENT.—Section 208(d) of

12 the Agriculture Trade Suspension Adjustment Act of 1980

13 (7 U.S.C. 4001(d)) is amended by striking paragraph (2)

14 and inserting the following:

15 ‘‘(2) APPLICABILITY OF CERTAIN PROVI16 SIONS.—Subsections (c), (d), (e), (f), and (g)(2) of

17 section 302 of the Food Security Commodity Re18 serve Act of 1996 shall apply to commodities in any

19 reserve established under paragraph (1), except that

20 the references to ‘eligible commodities’ in the sub21 sections shall be deemed to be references to ‘agricul22 tural commodities’.’’.
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1 SEC. 226. PROTEIN BYPRODUCTS DERIVED FROM ALCOHOL

2 FUEL PRODUCTION.

3 Section 1208 of the Agriculture and Food Act of

4 1981 (7 U.S.C. 1736n) is repealed.

5 SEC. 227. FOOD FOR PROGRESS PROGRAM.

6 The Food for Progress Act of 1985 (7 U.S.C. 1736o)

7 is amended—

8 (1) in subsection (b)—

9 (A) in paragraph (1)—

10 (i) by striking ‘‘(b)(1)’’ and inserting

11 ‘‘(b)’’; and

12 (ii) in the first sentence, by inserting

13 ‘‘intergovernmental organizations’’ after

14 ‘‘cooperatives’’; and

15 (B) by striking paragraph (2);

16 (2) in subsection (e)(4), by striking ‘‘203’’ and

17 inserting ‘‘406’’;

18 (3) in subsection (f)—

19 (A) in paragraph (1), by striking ‘‘in the

20 case of the independent states of the former So21 viet Union,’’;

22 (B) by striking paragraph (2);

23 (C) in paragraph (4), by inserting ‘‘in each

24 of fiscal years 1996 through 2002’’ after ‘‘may

25 be used’’; and
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1 (D) by redesignating paragraphs (3)

2 through (5) as paragraphs (2) through (4), re3 spectively;

4 (4) in subsection (g), by striking ‘‘1995’’ and

5 inserting ‘‘2002’’;

6 (5) in subsection (j), by striking ‘‘shall’’ and in7 serting ‘‘may’’;

8 (6) in subsection (k), by striking ‘‘1995’’ and

9 inserting ‘‘2002’’;

10 (7) in subsection (l)(1)—

11 (A) by striking ‘‘1991 through 1995’’ and

12 inserting ‘‘1996 through 2002’’; and

13 (B) by inserting ‘‘, and to provide technical

14 assistance for monetization programs,’’ after

15 ‘‘monitoring of food assistance programs’’; and

16 (8) in subsection (m)—

17 (A) by striking ‘‘with respect to the inde18 pendent states of the former Soviet Union’’;

19 (B) by striking ‘‘private voluntary organi20 zations and cooperatives’’ each place it appears

21 and inserting ‘‘agricultural trade organizations,

22 intergovernmental organizations, private vol23 untary organizations, and cooperatives’’; and

24 (C) in paragraph (2), by striking ‘‘in the

25 independent states’’.
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1 SEC. 228. USE OF FOREIGN CURRENCY PROCEEDS FROM

2 EXPORT SALES FINANCING.

3 Section 402 of the Mutual Security Act of 1954 (22

4 U.S.C. 1922) is repealed.

5 SEC. 229. STIMULATION OF FOREIGN PRODUCTION.

6 Section 7 of the Act of December 30, 1947 (61 Stat.

7 947, chapter 526; 50 U.S.C. App. 1917) is repealed.

8 Subtitle B—Amendments to

9 Agricultural Trade Act of 1978

10 SEC. 241. AGRICULTURAL EXPORT PROMOTION STRATEGY.

11 (a) IN GENERAL.—Section 103 of the Agricultural

12 Trade Act of 1978 (7 U.S.C. 5603) is amended to read

13 as follows:

14 ‘‘SEC. 103. AGRICULTURAL EXPORT PROMOTION STRATEGY.

15 ‘‘(a) IN GENERAL.—The Secretary shall develop a

16 strategy for implementing Federal agricultural export pro17 motion programs that takes into account the new market

18 opportunities for agricultural products, including opportu19 nities that result from—

20 ‘‘(1) the North American Free Trade Agree21 ment and the Uruguay Round Agreements;

22 ‘‘(2) any accession to membership in the World

23 Trade Organization;

24 ‘‘(3) the continued economic growth in the Pa25 cific Rim; and

26 ‘‘(4) other developments.
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1 ‘‘(b) PURPOSE OF STRATEGY.—The strategy devel2 oped under subsection (a) shall encourage the mainte3 nance, development, and expansion of export markets for

4 United States agricultural commodities and related prod5 ucts, including high-value and value-added products.

6 ‘‘(c) GOALS OF STRATEGY.—The strategy developed

7 under subsection (a) shall have the following goals:

8 ‘‘(1) By September 30, 2002, increasing the

9 value of annual United States agricultural exports to

10 $60,000,000,000.

11 ‘‘(2) By September 30, 2002, increasing the

12 United States share of world export trade in agricul13 tural products significantly above the average United

14 States share from 1993 through 1995.

15 ‘‘(3) By September 30, 2002, increasing the

16 United States share of world trade in high-value ag17 ricultural products to 20 percent.

18 ‘‘(4) Ensuring that the value of United States

19 exports of agricultural products increases at a faster

20 rate than the rate of increase in the value of overall

21 world export trade in agricultural products.

22 ‘‘(5) Ensuring that the value of United States

23 exports of high-value agricultural products increases

24 at a faster rate than the rate of increase in overall
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1 world export trade in high-value agricultural prod2 ucts.

3 ‘‘(6) Ensuring to the extent practicable that—

4 ‘‘(A) substantially all obligations under5 taken in the Uruguay Round Agreement on Ag6 riculture that provide significantly increased ac7 cess for United States agricultural commodities

8 are implemented to the extent required by the

9 Uruguay Round Agreements; or

10 ‘‘(B) applicable United States trade laws

11 are used to secure United States rights under

12 the Uruguay Round Agreement on Agriculture.

13 ‘‘(d) PRIORITY MARKETS.—

14 ‘‘(1) IDENTIFICATION OF MARKETS.—In devel15 oping the strategy required under subsection (a), the

16 Secretary shall identify as priority markets—

17 ‘‘(A) those markets in which imports of ag18 ricultural products show the greatest potential

19 for increase by September 30, 2002; and

20 ‘‘(B) those markets in which, with the as21 sistance of Federal export promotion programs,

22 exports of United States agricultural products

23 show the greatest potential for increase by Sep24 tember 30, 2002.
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1 ‘‘(2) IDENTIFICATION OF SUPPORTING OF2 FICES.—The President shall identify annually in the

3 budget of the United States Government submitted

4 under section 1105 of title 31, United States Code,

5 each overseas office of the Foreign Agricultural

6 Service that provides assistance to United States ex7 porters in each of the priority markets identified

8 under paragraph (1).

9 ‘‘(e) REPORT.—Not later than December 31, 2001,

10 the Secretary shall prepare and submit a report to Con11 gress assessing progress in meeting the goals established

12 by subsection (c).

13 ‘‘(f) FAILURE TO MEET GOALS.—Notwithstanding

14 any other law, if the Secretary determines that more than

15 2 of the goals established by subsection (c) are not met

16 by September 30, 2002, the Secretary may not carry out

17 agricultural trade programs under the Agricultural Trade

18 Act of 1978 (7 U.S.C. 5601 et seq.) as of that date.

19 ‘‘(g) NO PRIVATE RIGHT OF ACTION.—This section

20 shall not create any private right of action.’’.

21 (b) CONTINUATION OF FUNDING.—

22 (1) IN GENERAL.—If the Secretary of Agri23 culture makes a determination under section 103(f)

24 of the Agricultural Trade Act of 1978 (as amended

25 by subsection (a)), the Secretary shall utilize funds
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1 of the Commodity Credit Corporation to promote

2 United States agricultural exports in a manner con3 sistent with the Commodity Credit Corporation

4 Charter Act (15 U.S.C. 714 et seq.) and obligations

5 pursuant to the Uruguay Round Agreements.

6 (2) FUNDING.—The amount of Commodity

7 Credit Corporation funds used to carry out para8 graph (1) during a fiscal year shall not exceed the

9 total outlays for agricultural trade programs under

10 the Agricultural Trade Act of 1978 (7 U.S.C. 5601

11 et seq.) during fiscal year 2002.

12 (c) ELIMINATION OF REPORT.—

13 (1) IN GENERAL.—Section 601 of the Agricul14 tural Trade Act of 1978 (7 U.S.C. 5711) is re15 pealed.

16 (2) CONFORMING AMENDMENT.—The last sen17 tence of section 603 of the Agricultural Trade Act

18 of 1978 (7 U.S.C. 5713) is amended by striking ‘‘,

19 in a consolidated report,’’ and all that follows

20 through ‘‘section 601’’ and inserting ‘‘or in a con21 solidated report’’.

22 SEC. 242. EXPORT CREDITS.

23 (a) EXPORT CREDIT GUARANTEE PROGRAM.—Sec24 tion 202 of the Agricultural Trade Act of 1978 (7 U.S.C.

25 5622) is amended—
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1 (1) in subsection (a)—

2 (A) by striking ‘‘GUARANTEES.—The’’ and

3 inserting the following: ‘‘GUARANTEES.—

4 ‘‘(1) IN GENERAL.—The’’; and

5 (B) by adding at the end the following:

6 ‘‘(2) SUPPLIER CREDITS.—In carrying out this

7 section, the Commodity Credit Corporation may

8 issue guarantees for the repayment of credit made

9 available for a period of not more than 180 days by

10 a United States exporter to a buyer in a foreign

11 country.’’;

12 (2) in subsection (f)—

13 (A) by striking ‘‘(f) RESTRICTIONS.—The’’

14 and inserting the following:

15 ‘‘(f) RESTRICTIONS.—

16 ‘‘(1) IN GENERAL.—The’’; and

17 (B) by adding at the end the following:

18 ‘‘(2) CRITERIA FOR DETERMINATION.—In mak19 ing the determination required under paragraph (1)

20 with respect to credit guarantees under subsection

21 (b) for a country, the Secretary may consider, in ad22 dition to financial, macroeconomic, and monetary in23 dicators—

24 ‘‘(A) whether an International Monetary

25 Fund standby agreement, Paris Club reschedul-
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1 ing plan, or other economic restructuring plan

2 is in place with respect to the country;

3 ‘‘(B) the convertibility of the currency of

4 the country;

5 ‘‘(C) whether the country provides ade6 quate legal protection for foreign investments;

7 ‘‘(D) whether the country has viable finan8 cial markets;

9 ‘‘(E) whether the country provides ade10 quate legal protection for the private property

11 rights of citizens of the country; and

12 ‘‘(F) any other factors that are relevant to

13 the ability of the country to service the debt of

14 the country.’’;

15 (3) by striking subsection (h) and inserting the

16 following:

17 ‘‘(h) UNITED STATES AGRICULTURAL COMPO18 NENTS.—The Commodity Credit Corporation shall finance

19 or guarantee under this section only United States agricul20 tural commodities.’’;

21 (4) in subsection (i)—

22 (A) by striking ‘‘INSTITUTIONS.—A finan23 cial’’ and inserting the following: ‘‘INSTITU24 TIONS.—

25 ‘‘(1) IN GENERAL.—A financial’’;
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1 (B) by striking paragraph (1);

2 (C) by striking ‘‘(2) is’’ and inserting the

3 following:

4 ‘‘(A) is’’;

5 (D) by striking ‘‘(3) is’’ and inserting the

6 following:

7 ‘‘(B) is’’; and

8 (E) by adding at the end the following:

9 ‘‘(2) THIRD COUNTRY BANKS.—The Commodity

10 Credit Corporation may guarantee under subsections

11 (a) and (b) the repayment of credit made available

12 to finance an export sale irrespective of whether the

13 obligor is located in the country to which the export

14 sale is destined.’’; and

15 (5) by striking subsection (k) and inserting the

16 following:

17 ‘‘(k) PROCESSED AND HIGH-VALUE PRODUCTS.—

18 ‘‘(1) IN GENERAL.—In issuing export credit

19 guarantees under this section, the Commodity Credit

20 Corporation shall, subject to paragraph (2), ensure

21 that not less than 25 percent for each of fiscal years

22 1996 and 1997, 30 percent for each of fiscal years

23 1998 and 1999, and 35 percent for each of fiscal

24 years 2000, 2001, and 2002, of the total amount of

25 credit guarantees issued for a fiscal year is issued to
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1 promote the export of processed or high-value agri2 cultural products and that the balance is issued to

3 promote the export of bulk or raw agricultural com4 modities.

5 ‘‘(2) LIMITATION.—The percentage requirement

6 of paragraph (1) shall apply for a fiscal year to the

7 extent that a reduction in the total amount of credit

8 guarantees issued for the fiscal year is not required

9 to meet the percentage requirement.’’.

10 (b) FUNDING LEVELS.—Section 211(b) of the Agri11 cultural Trade Act of 1978 (7 U.S.C. 5641(b)) is amend12 ed—

13 (1) by striking paragraph (2);

14 (2) by redesignating subparagraph (B) of para15 graph (1) as paragraph (2) and indenting the mar16 gin of paragraph (2) (as so redesignated) so as to

17 align with the margin of paragraph (1); and

18 (3) by striking paragraph (1) and inserting the

19 following:

20 ‘‘(1) EXPORT CREDIT GUARANTEES.—The

21 Commodity Credit Corporation shall make available

22 for each of fiscal years 1996 through 2002 not less

23 than $5,500,000,000 in credit guarantees under

24 subsections (a) and (b) of section 202.’’.
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1 (c) DEFINITIONS.—Section 102(7) of the Agricul2 tural Trade Act of 1978 (7 U.S.C. 5602(7)) is amended

3 by striking subparagraphs (A) and (B) and inserting the

4 following:

5 ‘‘(A) an agricultural commodity or product

6 entirely produced in the United States; or

7 ‘‘(B) a product of an agricultural commod8 ity—

9 ‘‘(i) 90 percent or more of which by

10 weight, excluding packaging and water, is

11 entirely produced in the United States; and

12 ‘‘(ii) that the Secretary determines to

13 be a high value agricultural product.’’.

14 (d) REGULATIONS.—Not later than 180 days after

15 the effective date of this title, the Secretary of Agriculture

16 shall issue regulations to carry out the amendments made

17 by this section.

18 SEC. 243. MARKET PROMOTION PROGRAM.

19 Effective October 1, 1995, section 211(c)(1) of the

20 Agricultural Trade Act of 1978 (7 U.S.C. 5641(c)(1)) is

21 amended—

22 (1) by striking ‘‘and’’ after ‘‘1991 through

23 1993,’’; and
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1 (2) by striking ‘‘through 1997,’’ and inserting

2 ‘‘through 1995, and not more than $70,000,000 for

3 each of fiscal years 1996 through 2002,’’:

4 Provided, That funds made available under this Act to

5 carry out the non-generic activities of the market pro6 motion program established under section 203 of the Agri7 cultural Trade Act of 1978 (7 U.S.C. 5623) may be used

8 to provide cost-share assistance only to organizations that

9 are non-foreign entities and are recognized as small busi10 ness concerns under section 3(a) of the Small Business

11 Act (15 U.S.C. 632(a)) or to the associations described

12 in the first section of the Act entitled ‘‘An Act to authorize

13 association of producers of agricultural products’’, ap14 proved February 22, 1922 (7 U.S.C. 291): Provided fur15 ther, that such funds may not be used to provide cost16 share assistance to a foreign eligible trade organization:

17 Provided further, That none of the funds made available

18 under this Act may be used to carry out the market pro19 motion program established under section 203 of the Agri20 cultural Trade Act of 1978 (7 U.S.C. 5623) if the aggre21 gate amount of funds and value of commodities under the

22 program exceeds $70,000,000.
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1 SEC. 244. EXPORT ENHANCEMENT PROGRAM.

2 Effective October 1, 1995, section 301(e)(1) of the

3 Agricultural Trade Act of 1978 (7 U.S.C. 5651(e)(1)) is

4 amended to read as follows:

5 ‘‘(1) IN GENERAL.—The Commodity Credit

6 Corporation shall make available to carry out the

7 program established under this section not more

8 than—

9 ‘‘(A) $350,000,000 for fiscal year 1996;

10 ‘‘(B) $350,000,000 for fiscal year 1997;

11 ‘‘(C) $500,000,000 for fiscal year 1998;

12 ‘‘(D) $550,000,000 for fiscal year 1999;

13 ‘‘(E) $579,000,000 for fiscal year 2000;

14 ‘‘(F) $478,000,000 for fiscal year 2001;

15 and

16 ‘‘(G) $478,000,000 for fiscal year 2002.’’.

17 SEC. 245. ARRIVAL CERTIFICATION.

18 Section 401 of the Agricultural Trade Act of 1978

19 (7 U.S.C. 5662(a)) is amended by striking subsection (a)

20 and inserting the following:

21 ‘‘(a) ARRIVAL CERTIFICATION.—With respect to a

22 commodity provided, or for which financing or a credit

23 guarantee or other assistance is made available, under a

24 program authorized in section 201, 202, or 301, the Com25 modity Credit Corporation shall require the exporter of the

26 commodity to maintain records of an official or customary
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1 commercial nature or other documents as the Secretary

2 may require, and shall allow representatives of the Com3 modity Credit Corporation access to the records or docu4 ments as needed, to verify the arrival of the commodity

5 in the country that was the intended destination of the

6 commodity.’’.

7 SEC. 246. COMPLIANCE.

8 Section 402(a) of the Agricultural Trade Act of 1978

9 (7 U.S.C. 5662(a)) is amended—

10 (1) by striking paragraph (2); and

11 (2) by redesignating paragraph (3) as para12 graph (2).

13 SEC. 247. REGULATIONS.

14 Section 404 of the Agricultural Trade Act of 1978

15 (7 U.S.C. 5664) is repealed.

16 SEC. 248. TRADE COMPENSATION AND ASSISTANCE PRO17 GRAMS.

18 Title IV of the Agricultural Trade Act of 1978 (7

19 U.S.C. 5661 et seq.) is amended by adding at the end

20 the following:

21 ‘‘SEC. 417. TRADE COMPENSATION AND ASSISTANCE PRO22 GRAMS.

23 ‘‘(a) IN GENERAL.—Notwithstanding any other law,

24 if, after the effective date of this section, the President

25 or any other member of the Executive branch causes ex-
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1 ports from the United States to any country to be unilat2 erally suspended for reasons of national security or foreign

3 policy, and if within 180 days after the date on which the

4 suspension is imposed on United States exports no other

5 country agrees to participate in the suspension, the Sec6 retary shall carry out a trade compensation and assistance

7 program in accordance with this section (referred to in

8 this section as a ‘program’).

9 ‘‘(b) PROVISION OF FUNDS.—Under a program, the

10 Secretary shall make available for each fiscal year funds

11 of the Commodity Credit Corporation, in an amount cal12 culated under subsection (c), to promote agricultural ex13 ports or provide agricultural commodities to developing

14 countries, under any authorities available to the Secretary.

15 ‘‘(c) DETERMINATION OF AMOUNT OF FUNDS.—For

16 each fiscal year of a program, the amount of funds made

17 available under subsection (b) shall be equal to 90 percent

18 of the average annual value of United States agricultural

19 exports to the country with respect to which exports are

20 suspended during the most recent 3 years prior to the sus21 pension for which data are available.

22 ‘‘(d) DURATION OF PROGRAM.—

23 ‘‘(1) IN GENERAL.—For each suspension of ex24 ports for which a program is implemented under this

25 section, funds shall be made available under sub-
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1 section (b) for each fiscal year or part of a fiscal

2 year for which the suspension is in effect, but not

3 to exceed 2 fiscal years.

4 ‘‘(2) PARTIAL-YEAR EMBARGOES.—Regardless

5 of whether an embargo is in effect for only part of

6 a fiscal year, the full amount of funds as calculated

7 under subsection (c) shall be made available under

8 a program for the fiscal year. If the Secretary deter9 mines that making the required amount of funds

10 available in a partial fiscal year is impracticable, the

11 Secretary may make all or part of the funds re12 quired to be made available in the partial fiscal year

13 available in the following fiscal year (in addition to

14 any funds otherwise required under a program to be

15 made available in the following fiscal year).’’.

16 SEC. 249. FOREIGN AGRICULTURAL SERVICE.

17 Section 503 of the Agricultural Trade Act of 1978

18 (7 U.S.C. 5693) is amended to read as follows:

19 ‘‘SEC. 503. ESTABLISHMENT OF THE FOREIGN AGRICUL20 TURAL SERVICE.

21 ‘‘The Service shall assist the Secretary in carrying

22 out the agricultural trade policy and international co23 operation policy of the United States by—

24 ‘‘(1) acquiring information pertaining to agri25 cultural trade;
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1 ‘‘(2) carrying out market promotion and devel2 opment activities;

3 ‘‘(3) providing agricultural technical assistance

4 and training; and

5 ‘‘(4) carrying out the programs authorized

6 under this Act, the Agricultural Trade Development

7 and Assistance Act of 1954 (7 U.S.C. 1691 et seq.),

8 and other Acts.’’.

9 SEC. 250. REPORTS.

10 The first sentence of section 603 of the Agricultural

11 Trade Act of 1978 (7 U.S.C. 5713) is amended by striking

12 ‘‘The’’ and inserting ‘‘Subject to section 217 of the De13 partment of Agriculture Reorganization Act of 1994 (7

14 U.S.C. 6917), the’’.

15 Subtitle C—Miscellaneous

16 SEC. 251. REPORTING REQUIREMENTS RELATING TO TO17 BACCO.

18 Section 214 of the Tobacco Adjustment Act of 1983

19 (7 U.S.C. 509) is repealed.

20 SEC. 252. TRIGGERED EXPORT ENHANCEMENT.

21 (a) READJUSTMENT OF SUPPORT LEVELS.—Section

22 1302 of the Omnibus Budget Reconciliation Act of 1990

23 (Public Law 101–508; 7 U.S.C. 1421 note) is repealed.

24 (b) TRIGGERED MARKETING LOANS AND EXPORT

25 ENHANCEMENT.—Section 4301 of the Omnibus Trade
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1 and Competitiveness Act of 1988 (Public Law 100–418;

2 7 U.S.C. 1446 note) is repealed.

3 (c) EFFECTIVE DATE.—The amendments made by

4 this section shall be effective beginning with the 1996

5 crops of wheat, feed grains, upland cotton, and rice.

6 SEC. 253. DISPOSITION OF COMMODITIES TO PREVENT

7 WASTE.

8 Section 416 of the Agricultural Act of 1949 (7 U.S.C.

9 1431) is amended—

10 (1) in subsection (b)—

11 (A) in paragraph (1), by inserting after

12 the first sentence the following: ‘‘The Secretary

13 may use funds of the Commodity Credit Cor14 poration to cover administrative expenses of the

15 programs.’’;

16 (B) in paragraph (7)(D)(iv), by striking

17 ‘‘one year of acquisition’’ and all that follows

18 and inserting the following: ‘‘a reasonable

19 length of time, as determined by the Secretary,

20 except that the Secretary may permit the use of

21 proceeds in a country other than the country of

22 origin—

23 ‘‘(I) as necessary to expedite the transpor24 tation of commodities and products furnished

25 under this subsection; or
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1 ‘‘(II) if the proceeds are generated in a

2 currency generally accepted in the other coun3 try.’’;

4 (C) in paragraph (8), by striking subpara5 graph (C); and

6 (D) by striking paragraphs (10), (11), and

7 (12); and

8 (2) by striking subsection (c).

9 SEC. 254. DIRECT SALES OF DAIRY PRODUCTS.

10 Section 106 of the Agriculture and Food Act of 1981

11 (7 U.S.C. 1446c-1) is repealed.

12 SEC. 255. EXPORT SALES OF DAIRY PRODUCTS.

13 Section 1163 of the Food Security Act of 1985 (Pub14 lic Law 99–198; 7 U.S.C. 1731 note) is repealed.

15 SEC. 256. DEBT-FOR-HEALTH-AND-PROTECTION SWAP.

16 (a) IN GENERAL.—Section 1517 of the Food, Agri17 culture, Conservation, and Trade Act of 1990 (7 U.S.C.

18 1706) is repealed.

19 (b) CONFORMING AMENDMENT.—Subsection (e)(3)

20 of the Food for Progress Act of 1985 (7 U.S.C.

21 1736o(e)(3)) is amended by striking ‘‘section 106’’ and

22 inserting ‘‘section 103’’.
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1 SEC. 257. POLICY ON EXPANSION OF INTERNATIONAL MAR2 KETS.

3 Section 1207 of the Agriculture and Food Act of

4 1981 (7 U.S.C. 1736m) is repealed.

5 SEC. 258. POLICY ON MAINTENANCE AND DEVELOPMENT

6 OF EXPORT MARKETS.

7 Section 1121 of the Food Security Act of 1985 (7

8 U.S.C. 1736p) is amended—

9 (1) by striking subsection (a); and

10 (2) in subsection (b)—

11 (A) by striking ‘‘(b)’’; and

12 (B) by striking paragraphs (1) through (4)

13 and inserting the following:

14 ‘‘(1) be the premier supplier of agricultural and

15 food products to world markets and expand exports

16 of high value products;

17 ‘‘(2) support the principle of free trade and the

18 promotion of fair trade in agricultural commodities

19 and products;

20 ‘‘(3) cooperate fully in all efforts to negotiate

21 with foreign countries further reductions in tariff

22 and nontariff barriers to trade, including sanitary

23 and phytosanitary measures and trade-distorting

24 subsidies;

25 ‘‘(4) aggressively counter unfair foreign trade

26 practices as a means of encouraging fairer trade;’’.
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1 SEC. 259. POLICY ON TRADE LIBERALIZATION.

2 Section 1122 of the Food Security Act of 1985 (7

3 U.S.C. 1736q) is repealed.

4 SEC. 260. AGRICULTURAL TRADE NEGOTIATIONS.

5 Section 1123 of the Food Security Act of 1985 (7

6 U.S.C. 1736r) is amended to read as follows:

7 ‘‘SEC. 1123. TRADE NEGOTIATIONS POLICY.

8 ‘‘(a) FINDINGS.—Congress finds that—

9 ‘‘(1) on a level playing field, United States pro10 ducers are the most competitive suppliers of agricul11 tural products in the world;

12 ‘‘(2) exports of United States agricultural prod13 ucts will account for $53,000,000,000 in 1995, con14 tributing a net $24,000,000,000 to the merchandise

15 trade balance of the United States and supporting

16 approximately 1,000,000 jobs;

17 ‘‘(3) increased agricultural exports are critical

18 to the future of the farm, rural, and overall United

19 States economy, but the opportunities for increased

20 agricultural exports are limited by the unfair sub21 sidies of the competitors of the United States, and

22 a variety of tariff and nontariff barriers to highly

23 competitive United States agricultural products;

24 ‘‘(4) international negotiations can play a key

25 role in breaking down barriers to United States agri26 cultural exports;
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1 ‘‘(5) the Uruguay Round Agreement on Agri2 culture made significant progress in the attainment

3 of increased market access opportunities for United

4 States exports of agricultural products, for the first

5 time—

6 ‘‘(A) restraining foreign trade-distorting

7 domestic support and export subsidy programs;

8 and

9 ‘‘(B) developing common rules for the ap10 plication of sanitary and phytosanitary restric11 tions;

12 that should result in increased exports of United

13 States agricultural products, jobs, and income

14 growth in the United States;

15 ‘‘(6) the Uruguay Round Agreement on Agri16 culture did not succeed in completely eliminating

17 trade distorting domestic support and export sub18 sidies by—

19 ‘‘(A) allowing the European Union to con20 tinue unreasonable levels of spending on export

21 subsidies; and

22 ‘‘(B) failing to discipline monopolistic state

23 trading entities, such as the Canadian Wheat

24 Board, that use nontransparent and discrimina-
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1 tory pricing as a hidden de facto export sub2 sidy;

3 ‘‘(7) during the period 1996 through 2002,

4 there will be several opportunities for the United

5 States to negotiate fairer trade in agricultural prod6 ucts, including further negotiations under the World

7 Trade Organization, and steps toward possible free

8 trade agreements of the Americas and Asian-Pacific

9 Economic Cooperation (APEC); and

10 ‘‘(8) the United States should aggressively use

11 these opportunities to achieve more open and fair

12 opportunities for trade in agricultural products.

13 ‘‘(b) GOALS OF THE UNITED STATES IN AGRICUL14 TURAL TRADE NEGOTIATIONS.—The objectives of the

15 United States with respect to future negotiations on agri16 cultural trade include—

17 ‘‘(1) increasing opportunities for United States

18 exports of agricultural products by eliminating or

19 substantially reducing tariff and nontariff barriers

20 to trade;

21 ‘‘(2) leveling the playing field for United States

22 producers of agricultural products by limiting per

23 unit domestic production supports to levels that are

24 no greater than those available in the United States;
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1 ‘‘(3) ending the practice of export dumping by

2 eliminating all trade distorting export subsidies and

3 disciplining state trading entities so that they do not

4 (except in cases of bona fide food aid) sell in foreign

5 markets at below domestic market prices nor their

6 full costs of acquiring and delivering agricultural

7 products to the foreign markets; and

8 ‘‘(4) encouraging government policies that avoid

9 price-depressing surpluses.’’.

10 SEC. 261. POLICY ON UNFAIR TRADE PRACTICES.

11 Section 1164 of the Food Security Act of 1985 (Pub12 lic Law 99–198; 99 Stat. 1499) is repealed.

13 SEC. 262. AGRICULTURAL AID AND TRADE MISSIONS.

14 (a) IN GENERAL.—The Agricultural Aid and Trade

15 Missions Act (7 U.S.C. 1736bb et seq.) is repealed.

16 (b) CONFORMING AMENDMENT.—Section 7 of Public

17 Law 100–277 (7 U.S.C. 1736bb note) is repealed.

18 SEC. 263. ANNUAL REPORTS BY AGRICULTURAL ATTACHES.

19 Section 108(b)(1)(B) of the Agricultural Act of 1954

20 (7 U.S.C. 1748(b)(1)(B)) is amended by striking ‘‘includ21 ing fruits, vegetables, legumes, popcorn, and ducks’’.
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1 SEC. 264. WORLD LIVESTOCK MARKET PRICE INFORMA2 TION.

3 Section 1545 of the Food, Agriculture, Conservation,

4 and Trade Act of 1990 (Public Law 101–624; 7 U.S.C.

5 1761 note) is repealed.

6 SEC. 265. ORDERLY LIQUIDATION OF STOCKS.

7 Sections 201 and 207 of the Agricultural Act of 1956

8 (7 U.S.C. 1851 and 1857) are repealed.

9 SEC. 266. SALES OF EXTRA LONG STAPLE COTTON.

10 Section 202 of the Agricultural Act of 1956 (7 U.S.C.

11 1852) is repealed.

12 SEC. 267. REGULATIONS.

13 Section 707 of the Freedom for Russia and Emerging

14 Eurasian Democracies and Open Markets Support Act of

15 1992 (Public Law 102–511; 7 U.S.C. 5621 note) is

16 amended by striking subsection (d).

17 SEC. 268. EMERGING MARKETS.

18 (a) PROMOTION OF AGRICULTURAL EXPORTS TO

19 EMERGING MARKETS.—

20 (1) EMERGING MARKETS.—Section 1542 of the

21 Food, Agriculture, Conservation, and Trade Act of

22 1990 (Public Law 101–624; 7 U.S.C. 5622 note) is

23 amended—

24 (A) in the section heading, by striking

25 ‘‘EMERGING DEMOCRACIES’’ and inserting

26 ‘‘EMERGING MARKETS’’;
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1 (B) by striking ‘‘emerging democracies’’

2 each place it appears in subsections (b), (d),

3 and (e) and inserting ‘‘emerging markets’’;

4 (C) by striking ‘‘emerging democracy’’

5 each place it appears in subsection (c) and in6 serting ‘‘emerging market’’; and

7 (D) by striking subsection (f) and inserting

8 the following:

9 ‘‘(f) EMERGING MARKET.—In this section and sec10 tion 1543, the term ‘emerging market’ means any country

11 that the Secretary determines—

12 ‘‘(1) is taking steps toward a market-oriented

13 economy through the food, agriculture, or rural busi14 ness sectors of the economy of the country; and

15 ‘‘(2) has the potential to provide a viable and

16 significant market for United States agricultural

17 commodities or products of United States agricul18 tural commodities.’’.

19 (2) FUNDING.—Section 1542 of the Food, Ag20 riculture, Conservation, and Trade Act of 1990 is

21 amended by striking subsection (a) and inserting the

22 following:

23 ‘‘(a) FUNDING.—The Commodity Credit Corporation

24 shall make available for fiscal years 1996 through 2002

25 not less than $1,000,000,000 of direct credits or export
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1 credit guarantees for exports to emerging markets under

2 section 201 or 202 of the Agricultural Trade Act of 1978

3 (7 U.S.C. 5621 and 5622), in addition to the amounts

4 acquired or authorized under section 211 of the Act (7

5 U.S.C. 5641) for the program.’’.

6 (3) AGRICULTURAL FELLOWSHIP PROGRAM.—

7 Section 1542 of the Food, Agriculture, Conservation,

8 and Trade Act of 1990 is amended—

9 (A) in subsection (b), by striking the last

10 sentence and inserting the following: ‘‘The

11 Commodity Credit Corporation shall give prior12 ity under this subsection to—

13 ‘‘(A) projects that encourage the privatization

14 of the agricultural sector or that benefit private

15 farms or cooperatives in emerging markets; and

16 ‘‘(B) projects for which nongovernmental per17 sons agree to assume a relatively larger share of the

18 costs.’’; and

19 (B) in subsection (d)—

20 (i) in the matter preceding paragraph

21 (1), by striking ‘‘the Soviet Union’’ and in22 serting ‘‘emerging markets’’;

23 (ii) in paragraph (1)—

24 (I) in subparagraph (A)(i)—
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1 (aa) by striking ‘‘1995’’ and

2 inserting ‘‘2002’’; and

3 (bb) by striking ‘‘those sys4 tems, and identify’’ and inserting

5 ‘‘the systems, including potential

6 reductions in trade barriers, and

7 identify and carry out’’;

8 (II) in subparagraph (B), by

9 striking ‘‘shall’’ and inserting ‘‘may’’;

10 (III) in subparagraph (D), by in11 serting ‘‘(including the establishment

12 of extension services)’’ after ‘‘tech13 nical assistance’’;

14 (IV) by striking subparagraph

15 (F);

16 (V) by redesignating subpara17 graphs (G), (H), and (I) as subpara18 graphs (F), (G), and (H), respec19 tively; and

20 (VI) in subparagraph (H) (as re21 designated by subclause (V)), by strik22 ing ‘‘$10,000,000’’ and inserting

23 ‘‘$20,000,000’’;

24 (iii) in paragraph (2)—
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1 (I) by striking ‘‘the Soviet

2 Union’’ each place it appears and in3 serting ‘‘emerging markets’’;

4 (II) in subparagraph (A), by

5 striking ‘‘a free market food produc6 tion and distribution system’’ and in7 serting ‘‘free market food production

8 and distribution systems’’;

9 (III) in subparagraph (B)—

10 (aa) in clause (i), by striking

11 ‘‘Government’’ and inserting

12 ‘‘governments’’;

13 (bb) in clause (iii)(II), by

14 striking ‘‘and’’ at the end;

15 (cc) in clause (iii)(III), by

16 striking the period at the end

17 and inserting ‘‘; and’’; and

18 (dd) by adding at the end of

19 clause (iii) the following:

20 ‘‘(IV) to provide for the exchange

21 of administrators and faculty mem22 bers from agricultural and other insti23 tutions to strengthen and revise edu24 cational programs in agricultural eco25 nomics, agribusiness, and agrarian
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1 law, to support change towards a free

2 market economy in emerging mar3 kets.’’;

4 (IV) by striking subparagraph

5 (D); and

6 (V) by redesignating subpara7 graph (E) as subparagraph (D); and

8 (iv) by striking paragraph (3).

9 (4) UNITED STATES AGRICULTURAL COMMOD10 ITY.—Subsections (b) and (c) of section 1542 of the

11 Food, Agriculture, Conservation, and Trade Act of

12 1990 are amended by striking ‘‘section 101(6)’’ each

13 place it appears and inserting ‘‘section 102(7)’’.

14 (5) REPORT.—The first sentence of section

15 1542(e)(2) of the Food, Agriculture, Conservation,

16 and Trade Act of 1990 is amended by striking

17 ‘‘Not’’ and inserting ‘‘Subject to section 217 of the

18 Department of Agriculture Reorganization Act of

19 1994 (7 U.S.C. 6917), not’’.

20 (b) AGRICULTURAL FELLOWSHIP PROGRAM FOR

21 MIDDLE INCOME COUNTRIES, EMERGING DEMOCRACIES,

22 AND EMERGING MARKETS.—Section 1543 of the Food,

23 Agriculture, Conservation, and Trade Act of 1990 (7

24 U.S.C. 3293) is amended—
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1 (1) in the section heading, by striking ‘‘MID2 DLE INCOME COUNTRIES AND EMERGING DE3 MOCRACIES’’ and inserting ‘‘MIDDLE INCOME

4 COUNTRIES, EMERGING DEMOCRACIES, AND

5 EMERGING MARKETS’’;

6 (2) in subsection (b), by adding at the end the

7 following:

8 ‘‘(5) EMERGING MARKET.—Any emerging mar9 ket, as defined in section 1542(f).’’; and

10 (3) in subsection (c)(1), by striking ‘‘food

11 needs’’ and inserting ‘‘food and fiber needs’’.

12 (c) CONFORMING AMENDMENTS.—

13 (1) Section 501 of the Agricultural Trade De14 velopment and Assistance Act of 1954 (7 U.S.C.

15 1737) is amended—

16 (A) in subsection (a), by striking ‘‘emerg17 ing democracies’’ and inserting ‘‘emerging mar18 kets’’; and

19 (B) in subsection (b), by striking para20 graph (1) and inserting the following:

21 ‘‘(1) EMERGING MARKET.—The term ‘emerging

22 market’ means any country that the Secretary deter23 mines—

24 ‘‘(A) is taking steps toward a market-ori25 ented economy through the food, agriculture, or
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1 rural business sectors of the economy of the

2 country; and

3 ‘‘(B) has the potential to provide a viable

4 and significant market for United States agri5 cultural commodities or products of United

6 States agricultural commodities.’’.

7 (2) Section 201(d)(1)(C)(ii) of the Agricultural

8 Trade Act of 1978 (7 U.S.C. 5621(d)(1)(C)(ii)) is

9 amended by striking ‘‘emerging democracies’’ and

10 inserting ‘‘emerging markets’’.

11 (3) Section 202(d)(3)(B) of the Agricultural

12 Trade Act of 1978 (7 U.S.C. 5622(d)(3)(B)) is

13 amended by striking ‘‘emerging democracies’’ and

14 inserting ‘‘emerging markets’’.

15 SEC. 269. IMPORT ASSISTANCE FOR CBI BENEFICIARY

16 COUNTRIES AND THE PHILIPPINES.

17 Section 583 of Public Law 100–202 (101 Stat. 1329–

18 182) is repealed.

19 SEC. 270. STUDIES, REPORTS, AND OTHER PROVISIONS.

20 (a) IN GENERAL.—Sections 1551 through 1555, sec21 tion 1559, and section 1560 of subtitle E of title XV of

22 the Food, Agriculture, Conservation, and Trade Act of

23 1990 (Public Law 101–624; 104 Stat. 3696) are repealed.

24 (b) LANGUAGE PROFICIENCY.—Section 1556 of the

25 Food, Agriculture, Conservation, and Trade Act of 1990
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1 (Public Law 101–624; 7 U.S.C. 5694 note) is amended

2 by striking subsection (c).

3 SEC. 271. IMPLEMENTATION OF COMMITMENTS UNDER

4 URUGUAY ROUND AGREEMENTS.

5 Part III of subtitle A of title IV of the Uruguay

6 Round Agreements Act (Public Law 103–465; 108 Stat.

7 4964) is amended by adding at the end the following:

8 ‘‘SEC. 427. IMPLEMENTATION OF COMMITMENTS UNDER

9 URUGUAY ROUND AGREEMENTS.

10 ‘‘Not later than September 30 of each fiscal year, the

11 Secretary of Agriculture shall determine whether the obli12 gations undertaken by foreign countries under the Uru13 guay Round Agreement on Agriculture are being fully im14 plemented. If the Secretary of Agriculture determines that

15 any foreign country, by not implementing the obligations

16 of the country, is significantly constraining an opportunity

17 for United States agricultural exports, the Secretary

18 shall—

19 ‘‘(1) submit to the United States Trade Rep20 resentative a recommendation as to whether the

21 President should take action under any provision of

22 law; and

23 ‘‘(2) transmit a copy of the recommendation to

24 the Committee on Agriculture, and the Committee

25 on Ways and Means, of the House of Representa-
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1 tives and the Committee on Agriculture, Nutrition,

2 and Forestry, and the Committee on Finance, of the

3 Senate.’’.

4 SEC. 272. SENSE OF CONGRESS CONCERNING MULTILAT5 ERAL DISCIPLINES ON CREDIT GUARANTEES.

6 It is the sense of Congress that—

7 (1) in negotiations to establish multilateral dis8 ciplines on agricultural export credits and credit

9 guarantees, the United States should not agree to

10 any arrangement that is incompatible with the provi11 sions of United States law that authorize agricul12 tural export credits and credit guarantees;

13 (2) in the negotiations (which are held under

14 the auspices of the Organization for Economic Co15 operation and Development), the United States

16 should not reach any agreement that fails to impose

17 disciplines on the practices of foreign government

18 trading entities such as the Australian Wheat Board

19 and Canadian Wheat Board; and

20 (3) the disciplines should include greater open21 ness in the operations of the entities as long as the

22 entities are subsidized by the foreign government or

23 have monopolies for exports of a commodity that are

24 sanctioned by the foreign government.
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1 SEC. 273. FOREIGN MARKET DEVELOPMENT COOPERATOR

2 PROGRAM.

3 The Agricultural Trade Act of 1978 (7 U.S.C. 5601

4 et seq.) is amended by adding at the end the following:

5 ‘‘TITLE VII—FOREIGN MARKET

6 DEVELOPMENT COOPERATOR

7 PROGRAM

8 ‘‘SEC. 701. DEFINITION OF ELIGIBLE TRADE ORGANIZA9 TION.

10 ‘‘In this title, the term ‘eligible trade organization’

11 means a United States trade organization that—

12 ‘‘(1) promotes the export of 1 or more United

13 States agricultural commodities or products; and

14 ‘‘(2) does not have a business interest in or re15 ceive remuneration from specific sales of agricultural

16 commodities or products.

17 ‘‘SEC. 702. FOREIGN MARKET DEVELOPMENT COOPERATOR

18 PROGRAM.

19 ‘‘(a) IN GENERAL.—The Secretary shall establish

20 and, in cooperation with eligible trade organizations, carry

21 out a foreign market development cooperator program to

22 maintain and develop foreign markets for United States

23 agricultural commodities and products.

24 ‘‘(b) ADMINISTRATION.—Funds made available to

25 carry out this title shall be used only to provide—
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1 ‘‘(1) cost-share assistance to an eligible trade

2 organization under a contract or agreement with the

3 organization; and

4 ‘‘(2) assistance for other costs that are nec5 essary or appropriate to carry out the foreign mar6 ket development cooperator program, including con7 tingent liabilities that are not otherwise funded.

8 ‘‘SEC. 703. AUTHORIZATION OF APPROPRIATIONS.

9 ‘‘There are authorized to be appropriated to carry out

10 this title such sums as may be necessary for each of fiscal

11 years 1996 through 2002.’’.

12 SEC. 274. PRICE SUPPORT FOR RICE.

13 Section 101 of the Agricultural Act of 1949 is amend14 ed by adding a subsection (e) that reads as follows:

15 ‘‘(e) RICE.—The Secretary shall make available to

16 producers of each crop of rice on a farm price support

17 at a level that is not less than 50%, or more than 90%

18 of the parity price for rice as the Secretary determines

19 will not result in increasing stocks of rice to the Commod20 ity Credit Corporation.’’.

21 TITLE III—CONSERVATION

22 Subtitle A—Definitions

23 SEC. 301. DEFINITIONS.

24 Section 1201(a) of the Food Security Act of 1985

25 (16 U.S.C. 3801(a)) is amended—
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1 (1) by redesignating paragraphs (3) through

2 (16) as paragraphs (4) through (17), respectively;

3 and

4 (2) by inserting after paragraph (2) the follow5 ing:

6 ‘‘(3) CONSERVATION SYSTEM.—The term ‘con7 servation system’ means the conservation measures

8 and practices that are approved for application by a

9 producer to a highly erodible field and that provide

10 for cost effective and practical erosion reduction on

11 the field based on local resource conditions and

12 standards contained in the Natural Resources Con13 servation Service field office technical guide.’’.

14 Subtitle B—Environmental Con15 servation Acreage Reserve Pro16 gram

17 SEC. 311. ENVIRONMENTAL CONSERVATION ACREAGE RE18 SERVE PROGRAM.

19 Section 1230 of the Food Security Act of 1985 (16

20 U.S.C. 3830) is amended to read as follows:

21 ‘‘SEC. 1230. ENVIRONMENTAL CONSERVATION ACREAGE

22 RESERVE PROGRAM.

23 ‘‘(a) ESTABLISHMENT.—

24 ‘‘(1) IN GENERAL.—During the 1996 through

25 2002 calendar years, the Secretary shall establish an
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1 environmental conservation acreage reserve program

2 (referred to in this section as ‘ECARP’) to be imple3 mented through contracts and the acquisition of

4 easements to assist owners and operators of farms

5 and ranches to conserve and enhance soil, water,

6 and related natural resources, including grazing

7 land, wetland, and wildlife habitat.

8 ‘‘(2) MEANS.—The Secretary shall carry out

9 the ECARP by—

10 ‘‘(A) providing for the long-term protection

11 of environmentally sensitive land; and

12 ‘‘(B) providing technical and financial as13 sistance to farmers and ranchers to—

14 ‘‘(i) improve the management and op15 eration of the farms and ranches; and

16 ‘‘(ii) reconcile productivity and profit17 ability with protection and enhancement of

18 the environment.

19 ‘‘(3) PROGRAMS.—The ECARP shall consist

20 of—

21 ‘‘(A) the conservation reserve program es22 tablished under subchapter B;

23 ‘‘(B) the wetlands reserve program estab24 lished under subchapter C;
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1 ‘‘(C) the environmental quality incentives

2 program established under chapter 4; and

3 ‘‘(D) a farmland protection program under

4 which the Secretary shall use funds of the Com5 modity Credit Corporation for the purchase of

6 conservation easements or other interests in not

7 less than 170,000, nor more than 340,000,

8 acres of land with prime, unique, or other pro9 ductive soil that is subject to a pending offer

10 from a State or local government for the pur11 pose of protecting topsoil by limiting non12 agricultural uses of the land, except that any

13 highly erodible cropland shall be subject to the

14 requirements of a conservation plan, including,

15 if required by the Secretary, the conversion of

16 the land to less intensive uses. In no case shall

17 total expenditures of funding from the Com18 modity Credit Corporation exceed a total of

19 $35,000,000 over the first 3 and subsequent

20 fiscal years.

21 ‘‘(b) ADMINISTRATION.—

22 ‘‘(1) IN GENERAL.—In carrying out the

23 ECARP, the Secretary shall enter into contracts

24 with owners and operators and acquire interests in
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1 land through easements from owners, as provided in

2 this chapter and chapter 4.

3 ‘‘(2) PRIOR ENROLLMENTS.—Acreage enrolled

4 in the conservation reserve or wetlands reserve pro5 gram prior to the effective date of this paragraph

6 shall be considered to be placed into the ECARP.

7 ‘‘(c) CONSERVATION PRIORITY AREAS.—

8 ‘‘(1) DESIGNATION.—

9 ‘‘(A) IN GENERAL.—The Secretary shall

10 designate watersheds or regions of special envi11 ronmental sensitivity, including the Chesapeake

12 Bay Region (consisting of Pennsylvania, Mary13 land, and Virginia), the Great Lakes Region,

14 the Rainwater Basin Region, the Lake Cham15 plain Basin, the Prairie Pothole Region, and

16 the Long Island Sound Region, as conservation

17 priority areas that are eligible for enhanced as18 sistance through the programs established

19 under this chapter and chapter 4.

20 ‘‘(B) APPLICATION.—A designation shall

21 be made under this paragraph if agricultural

22 practices on land within the watershed or re23 gion pose a significant threat to soil, water, and

24 related natural resources, as determined by the

25 Secretary, and an application is made by—
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1 ‘‘(i) a State agency in consultation

2 with the State technical committee estab3 lished under section 1261; or

4 ‘‘(ii) State agencies from several

5 States that agree to form an interstate

6 conservation priority area.

7 ‘‘(C) ASSISTANCE.—The Secretary shall

8 designate a watershed or region of special envi9 ronmental sensitivity as a conservation priority

10 area to assist, to the maximum extent prac11 ticable, agricultural producers within the water12 shed or region to comply with nonpoint source

13 pollution requirements under the Federal Water

14 Pollution Control Act (33 U.S.C. 1251 et seq.)

15 and other Federal and State environmental

16 laws.

17 ‘‘(2) APPLICABILITY.—The Secretary shall des18 ignate a watershed or region of special environ19 mental sensitivity as a conservation priority area in

20 a manner that conforms, to the maximum extent

21 practicable, to the functions and purposes of the

22 conservation reserve, wetlands reserve, and environ23 mental quality incentives programs, as applicable, if

24 participation in the program or programs is likely to

25 result in the resolution or amelioration of significant
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1 soil, water, and related natural resource problems

2 related to agricultural production activities within

3 the watershed or region.

4 ‘‘(3) TERMINATION.—A conservation priority

5 area designation shall terminate on the date that is

6 5 years after the date of the designation, except that

7 the Secretary may—

8 ‘‘(A) redesignate the area as a conserva9 tion priority area; or

10 ‘‘(B) withdraw the designation of a water11 shed or region if the Secretary determines the

12 area is no longer affected by significant

13 soil,water, and related natural resource impacts

14 related to agricultural production activities.’’.

15 SEC. 312. CONSERVATION RESERVE PROGRAM.

16 (a) IN GENERAL.—Section 1231 of the Food Security

17 Act of 1985 (16 U.S.C. 3831) is amended—

18 (1) by striking ‘‘1995’’ each place it appears

19 and inserting ‘‘2002’’; and

20 (2) in subsection (d), by striking ‘‘38,000,000’’

21 and inserting ‘‘36,520,000’’.

22 (b) DUTIES OF OWNERS AND OPERATORS.—Section

23 1232(c) of the Food Security Act of 1985 (16 U.S.C.

24 3832(c)) is amended by striking ‘‘1995’’ and inserting

25 ‘‘2002’’.
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1 (c) RELATIONSHIP TO OTHER LAW.—The authority

2 granted to the Secretary of Agriculture as a result of the

3 amendments made by this section shall supersede any re4 striction on the operation of the conservation reserve pro5 gram established under any other provision of law.

6 SEC. 313. WETLANDS RESERVE PROGRAM.

7 (a) PURPOSES.—Section 1237(a) of the Food Secu8 rity Act of 1985 (16 U.S.C. 3837(a)) is amended by strik9 ing ‘‘to assist owners of eligible lands in restoring and pro10 tecting wetlands’’ and inserting ‘‘to protect wetlands for

11 purposes of enhancing water quality and providing wildlife

12 benefits while recognizing landowner rights’’.

13 (b) ENROLLMENT.—Section 1237 of the Food Secu14 rity Act of 1985 (16 U.S.C. 3837) is amended by striking

15 subsection (b) and inserting the following:

16 ‘‘(b) MINIMUM ENROLLMENT.—The Secretary shall

17 enroll into the wetlands reserve program—

18 ‘‘(1) during the 1996 through 2002 calendar

19 years, a total of not more than 975,000 acres; and

20 ‘‘(2) beginning with offers accepted by the Sec21 retary during calendar year 1997, to the maximum

extent practicable, 1 22 ⁄3 of the acres in permanent

easements, 1 23 ⁄3 of the acres in 30-year easements,

and 1 24 ⁄3 of the acres in restoration cost-share agree25 ments.’’.
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1 (c) ELIGIBILITY.—Section 1237(c) of the Food Secu2 rity Act of 1985 (16 U.S.C. 3837(c)) is amended—

3 (1) by striking ‘‘2000’’ and inserting ‘‘2002’’;

4 and

5 (2) by inserting ‘‘the land maximizes wildlife

6 benefits and wetland values and functions and’’ after

7 ‘‘determines that’’.

8 (d) OTHER ELIGIBLE LANDS.—Section 1237(d) (16

9 U.S.C. 3837(d)) is amended by inserting after ‘‘subsection

10 (c)’’ the following ‘‘, land that maximizes wildlife benefits

11 and that is’’.

12 (e) EASEMENTS.—Section 1237A of the Food Secu13 rity Act of 1985 (16 U.S.C. 3837a) is amended—

14 (1) in the section heading, by inserting before

15 the period at the end the following: ‘‘AND AGREE16 MENTS’’;

17 (2) by striking subsection (c) and inserting the

18 following:

19 ‘‘(c) RESTORATION PLANS.—The development of a

20 restoration plan, including any compatible use, under this

21 section shall be made through the local Natural Resources

22 Conservation Service representative, in consultation with

23 the State technical committee.’’;

24 (3) in subsection (f), by striking the third sen25 tence and inserting the following: ‘‘Compensation
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1 may be provided in not less than 5, nor more than

2 30, annual payments of equal or unequal size, as

3 agreed to by the owner and the Secretary.’’; and

4 (4) by adding at the end the following:

5 ‘‘(h) COST SHARE AGREEMENTS.—The Secretary

6 may enroll land into the wetland reserve through agree7 ments that require the landowner to restore wetlands on

8 the land, if the agreement does not provide the Secretary

9 with an easement.’’.

10 (f) COST SHARE AND TECHNICAL ASSISTANCE.—

11 Section 1237C of the Food Security Act of 1985 (16

12 U.S.C. 3837c) is amended by striking subsection (b) and

13 inserting the following:

14 ‘‘(b) COST SHARE AND TECHNICAL ASSISTANCE.—

15 In the case of an easement entered into during the 1996

16 through 2002 calendar years, in making cost share pay17 ments under subsection (a)(1), the Secretary shall—

18 ‘‘(1) in the case of a permanent easement, pay

19 the owner an amount that is not less than 75 per20 cent, but not more than 100 percent, of the eligible

21 costs;

22 ‘‘(2) in the case of a 30-year easement or a

23 cost-share agreement, pay the owner an amount that

24 is not less than 50 percent, but not more than 75

25 percent, of the eligible costs; and
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1 ‘‘(3) provide owners technical assistance to as2 sist landowners in complying with the terms of ease3 ments and agreements.’’.

4 SEC. 314. ENVIRONMENTAL QUALITY INCENTIVES PRO5 GRAM.

6 Subtitle D of title XII of the Food Security Act of

7 1985 (16 U.S.C. 3830 et seq.) is amended by adding at

8 the end the following:

9 ‘‘CHAPTER 4—ENVIRONMENTAL QUALITY

10 INCENTIVES PROGRAM

11 ‘‘SEC. 1238. FINDINGS AND PURPOSES.

12 ‘‘(a) FINDINGS.—Congress finds that—

13 ‘‘(1) farmers and ranchers cumulatively manage

more than 1 14 ⁄2 of the private lands in the continental

15 United States;

16 ‘‘(2) because of the predominance of agri17 culture, the soil, water, and related natural re18 sources of the United States cannot be protected

19 without cooperative relationships between the Fed20 eral Government and farmers and ranchers;

21 ‘‘(3) farmers and ranchers have made tremen22 dous progress in protecting the environment and the

23 agricultural resource base of the United States over

24 the past decade because of not only Federal Govern-
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1 ment programs but also their spirit of stewardship

2 and the adoption of effective technologies;

3 ‘‘(4) it is in the interest of the entire United

4 States that farmers and ranchers continue to strive

5 to preserve soil resources and make more efforts to

6 protect water quality and wildlife habitat, and ad7 dress other broad environmental concerns;

8 ‘‘(5) environmental strategies that stress the

9 prudent management of resources, as opposed to

10 idling land, will permit the maximum economic op11 portunities for farmers and ranchers in the future;

12 ‘‘(6) unnecessary bureaucratic and paperwork

13 barriers associated with existing agricultural con14 servation assistance programs decrease the potential

15 effectiveness of the programs; and

16 ‘‘(7) the recent trend of Federal spending on

17 agricultural conservation programs suggests that as18 sistance to farmers and ranchers in future years

19 will, absent changes in policy, dwindle to perilously

20 low levels.

21 ‘‘(b) PURPOSES.—The purposes of the environmental

22 quality incentives program established by this chapter are

23 to—

24 ‘‘(1) combine into a single program the func25 tions of—
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1 ‘‘(A) the agricultural conservation program

2 authorized by sections 7 and 8 of the Soil Con3 servation and Domestic Allotment Act (16

4 U.S.C. 590g and 590h) (as in effect before the

5 amendments made by section 355(a)(1) of the

6 Agricultural Reform and Improvement Act of

7 1996);

8 ‘‘(B) the Great Plains conservation pro9 gram established under section 16(b) of the Soil

10 Conservation and Domestic Allotment Act (16

11 U.S.C. 590p(b)) (as in effect before the amend12 ment made by section 355(b)(1) of the Agricul13 tural Reform and Improvement Act of 1996);

14 and

15 ‘‘(C) the water quality incentives program

16 established under chapter 2 (as in effect before

17 the amendment made by section 355(k) of the

18 Agricultural Reform and Improvement Act of

19 1996); and

20 ‘‘(C) the Colorado River Basin salinity

21 control program established under section

22 202(c) of the Colorado River Basin Salinity

23 Control Act (43 U.S.C. 1592(c)) (as in effect

24 before the amendment made by section
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1 355(c)(1) of the Agricultural Reform and Im2 provement Act of 1996); and

3 ‘‘(2) carry out the single program in a manner

4 that maximizes environmental benefits per dollar ex5 pended, and that provides—

6 ‘‘(A) flexible technical and financial assist7 ance to farmers and ranchers that face the

8 most serious threats to soil, water, and related

9 natural resources, including grazing lands, wet10 lands, and wildlife habitat;

11 ‘‘(B) assistance to farmers and ranchers in

12 complying with this title and Federal and State

13 environmental laws, and to encourage environ14 mental enhancement;

15 ‘‘(C) assistance to farmers and ranchers in

16 making beneficial, cost-effective changes to

17 cropping systems, grazing management, ma18 nure, nutrient, pest, or irrigation management,

19 land uses, or other measures needed to conserve

20 and improve soil, water, and related natural re21 sources; and

22 ‘‘(D) for the consolidation and simplifica23 tion of the conservation planning process to re24 duce administrative burdens on the owners and

25 operators of farms and ranches.
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1 ‘‘SEC. 1238A. DEFINITIONS.

2 ‘‘In this chapter:

3 ‘‘(1) LAND MANAGEMENT PRACTICE.—The

4 term ‘land management practice’ means nutrient or

5 manure management, integrated pest management,

6 irrigation management, tillage or residue manage7 ment, grazing management, or another land man8 agement practice the Secretary determines is needed

9 to protect soil, water, or related resources in the

10 most cost effective manner.

11 ‘‘(2) LARGE CONFINED LIVESTOCK OPER12 ATION.—The term ‘large confined livestock oper13 ation’ means a farm or ranch that—

14 ‘‘(A) is a confined animal feeding oper15 ation; and

16 ‘‘(B) has more than—

17 ‘‘(i) 700 mature dairy cattle;

18 ‘‘(ii) 1,000 beef cattle;

19 ‘‘(iii) 100,000 laying hens or broilers;

20 ‘‘(iv) 55,000 turkeys;

21 ‘‘(v) 2,500 swine; or

22 ‘‘(vi) 10,000 sheep or lambs.

23 ‘‘(3) LIVESTOCK.—The term ‘livestock’ means

24 mature dairy cows, beef cattle, laying hens, broilers,

25 turkeys, swine, sheep, or lambs.
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1 ‘‘(4) OPERATOR.—The term ‘operator’ means a

2 person who is engaged in crop or livestock produc3 tion (as defined by the Secretary).

4 ‘‘(5) STRUCTURAL PRACTICE.—The term ‘struc5 tural practice’ means the establishment of an animal

6 waste management facility, terrace, grassed water7 way, contour grass strip, filterstrip, permanent wild8 life habitat, or another structural practice that the

9 Secretary determines is needed to protect soil, water,

10 or related resources in the most cost effective man11 ner.

12 ‘‘SEC. 1238B. ESTABLISHMENT AND ADMINISTRATION OF

13 ENVIRONMENTAL QUALITY INCENTIVES PRO14 GRAM.

15 ‘‘(a) ESTABLISHMENT.—

16 ‘‘(1) IN GENERAL.—During the 1996 through

17 2002 fiscal years, the Secretary shall provide tech18 nical assistance, cost-sharing payments, and incen19 tive payments, education to operators, who enter

20 into contracts with the Secretary, through an envi21 ronmental quality incentives program in accordance

22 with this chapter.

23 ‘‘(2) ELIGIBLE PRACTICES.—

24 ‘‘(A) STRUCTURAL PRACTICES.—An opera25 tor who implements a structural practice shall
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1 be eligible for technical assistance or cost-shar2 ing payments, education or both.

3 ‘‘(B) LAND MANAGEMENT PRACTICES.—An

4 operator who performs a land management

5 practice shall be eligible for technical assistance

6 or incentive payments, education or both.

7 ‘‘(b) APPLICATION AND TERM.—A contract between

8 an operator and the Secretary under this chapter may—

9 ‘‘(1) apply to 1 or more structural practices or

10 1 or more land management practices, or both; and

11 ‘‘(2) have a term of not less than 5, nor more

12 than 10, years, as determined appropriate by the

13 Secretary, depending on the practice or practices

14 that are the basis of the contract.

15 ‘‘(c) STRUCTURAL PRACTICES.—

16 ‘‘(1) COMPETITIVE OFFER.—The Secretary

17 shall administer a competitive offer system for oper18 ators proposing to receive cost-sharing payments in

19 exchange for the implementation of 1 or more struc20 tural practices by the operator. The competitive

21 offer system shall consist of—

22 ‘‘(A) the submission of a competitive offer

23 by the operator in such manner as the Sec24 retary may prescribe; and
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1 ‘‘(B) evaluation of the offer in light of the

2 priorities established in section 1238C and the

3 projected cost of the proposal, as determined by

4 the Secretary.

5 ‘‘(2) CONCURRENCE OF OWNER.—If the opera6 tor making an offer to implement a structural prac7 tice is a tenant of the land involved in agricultural

8 production, for the offer to be acceptable, the opera9 tor shall obtain the concurrence of the owner of the

10 land with respect to the offer.

11 ‘‘(d) LAND MANAGEMENT PRACTICES.—The Sec12 retary shall establish an application and evaluation proc13 ess for awarding technical assistance or incentive pay14 ments, or both, to an operator in exchange for the per15 formance of 1 or more land management practices by the

16 operator.

17 ‘‘(e) COST-SHARING AND INCENTIVE PAYMENTS.—

18 ‘‘(1) COST-SHARING PAYMENTS.—

19 ‘‘(A) IN GENERAL.—The Federal share of

20 cost-sharing payments to an operator proposing

21 to implement 1 or more structural practices

22 shall not be more than 75 percent of the pro23 jected cost of the practice, as determined by the

24 Secretary, taking into consideration any pay-
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1 ment received by the operator from a State or

2 local government.

3 ‘‘(B) LIMITATION.—An operator of a large

4 confined livestock operation shall not be eligible

5 for cost-sharing payments to construct an ani6 mal waste management facility.

7 ‘‘(C) OTHER PAYMENTS.—An operator

8 shall not be eligible for cost-sharing payments

9 for structural practices on eligible land under

10 this chapter if the operator receives cost-shar11 ing payments or other benefits for the same

12 land under chapter 1 or 3.

13 ‘‘(2) INCENTIVE PAYMENTS.—The Secretary

14 shall make incentive payments in an amount and at

15 a rate determined by the Secretary to be necessary

16 to encourage an operator to perform 1 or more land

17 management practices.

18 ‘‘(f) TECHNICAL ASSISTANCE.—

19 ‘‘(1) FUNDING.—The Secretary shall allocate

20 funding under this chapter for the provision of tech21 nical assistance according to the purpose and pro22 jected cost for which the technical assistance is pro23 vided in a fiscal year. The allocated amount may

24 vary according to the type of expertise required,

25 quantity of time involved, and other factors as deter-
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1 mined appropriate by the Secretary. Funding shall

2 not exceed the projected cost to the Secretary of the

3 technical assistance provided in a fiscal year.

4 ‘‘(2) OTHER AUTHORITIES.—The receipt of

5 technical assistance under this chapter shall not af6 fect the eligibility of the operator to receive technical

7 assistance under other authorities of law available to

8 the Secretary.

9 ‘‘(g) MODIFICATION OR TERMINATION OF CON10 TRACTS.—

11 ‘‘(1) VOLUNTARY MODIFICATION OR TERMI12 NATION.—The Secretary may modify or terminate a

13 contract entered into with an operator under this

14 chapter if—

15 ‘‘(A) the operator agrees to the modifica16 tion or termination; and

17 ‘‘(B) the Secretary determines that the

18 modification or termination is in the public in19 terest.

20 ‘‘(2) INVOLUNTARY TERMINATION.—The Sec21 retary may terminate a contract under this chapter

22 if the Secretary determines that the operator vio23 lated the contract.

24 ‘‘(h) NON-FEDERAL ASSISTANCE.—
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1 ‘‘(1) IN GENERAL.—The Secretary may request

2 the services of a State water quality agency, State

3 fish and wildlife agency, State forestry agency, or

4 any other governmental or private resource consid5 ered appropriate to assist in providing the technical

6 assistance necessary for the development and imple7 mentation of a structural practice or land manage8 ment practice.

9 ‘‘(2) LIMITATION ON LIABILITY.—No person

10 shall be permitted to bring or pursue any claim or

11 action against any official or entity based on or re12 sulting from any technical assistance provided to an

13 operator under this chapter to assist in complying

14 with a Federal or State environmental law.

15 ‘‘SEC. 1238C. EVALUATION OF OFFERS AND PAYMENTS.

16 ‘‘(a) REGIONAL PRIORITIES.—The Secretary shall

17 provide technical assistance, cost-sharing payments, and

18 incentive payments to operators in a region, watershed,

19 or conservation priority area under this chapter based on

20 the significance of the soil, water, and related natural re21 source problems in the region, watershed, or area, and the

22 structural practices or land management practices that

23 best address the problems, as determined by the Secretary.

24 ‘‘(b) MAXIMIZATION OF ENVIRONMENTAL BENE25 FITS.—
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1 ‘‘(1) IN GENERAL.—In providing technical as2 sistance, cost-sharing payments, and incentive pay3 ments to operators in regions, watersheds, or con4 servation priority areas under this chapter, the Sec5 retary shall accord a higher priority to assistance

6 and payments that maximize environmental benefits

7 per dollar expended.

8 ‘‘(2) NATIONAL AND REGIONAL PRIORITY.—The

9 prioritization shall be done nationally as well as

10 within the conservation priority area, region, or wa11 tershed in which an agricultural operation is located.

12 ‘‘(3) CRITERIA.—To carry out this subsection,

13 the Secretary shall establish criteria for implement14 ing structural practices and land management prac15 tices that best achieve conservation goals for a re16 gion, watershed, or conservation priority area, as de17 termined by the Secretary.

18 ‘‘(c) STATE OR LOCAL CONTRIBUTIONS.—The Sec19 retary shall accord a higher priority to operators whose

20 agricultural operations are located within watersheds, re21 gions, or conservation priority areas in which State or

22 local governments have provided, or will provide, financial

23 or technical assistance to the operators for the same con24 servation or environmental purposes.
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1 ‘‘(d) PRIORITY LANDS.—The Secretary shall accord

2 a higher priority to structural practices or land manage3 ment practices on lands on which agricultural production

4 has been determined to contribute to, or create, the poten5 tial for failure to meet applicable water quality standards

6 or other environmental objectives of a Federal or State

7 law.

8 ‘‘SEC. 1238D. DUTIES OF OPERATORS.

9 ‘‘To receive technical assistance, cost-sharing pay10 ments, or incentives payments under this chapter, an oper11 ator shall agree—

12 ‘‘(1) to implement an environmental quality in13 centives program plan that describes conservation

14 and environmental goals to be achieved through a

15 structural practice or land management practice, or

16 both, that is approved by the Secretary;

17 ‘‘(2) not to conduct any practices on the farm

18 or ranch that would tend to defeat the purposes of

19 this chapter;

20 ‘‘(3) on the violation of a term or condition of

21 the contract at any time the operator has control of

22 the land, to refund any cost-sharing or incentive

23 payment received with interest, and forfeit any fu24 ture payments under this chapter, as determined by

25 the Secretary;
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1 ‘‘(4) on the transfer of the right and interest of

2 the operator in land subject to the contract, unless

3 the transferee of the right and interest agrees with

4 the Secretary to assume all obligations of the con5 tract, to refund all cost-sharing payments and incen6 tive payments received under this chapter, as deter7 mined by the Secretary;

8 ‘‘(5) to supply information as required by the

9 Secretary to determine compliance with the environ10 mental quality incentives program plan and require11 ments of the program; and

12 ‘‘(6) to comply with such additional provisions

13 as the Secretary determines are necessary to carry

14 out the environmental quality incentives program

15 plan.

16 ‘‘SEC. 1238E. ENVIRONMENTAL QUALITY INCENTIVES PRO17 GRAM PLAN.

18 ‘‘An environmental quality incentives program plan

19 shall include (as determined by the Secretary)—

20 ‘‘(1) a description of the prevailing farm or

21 ranch enterprises, cropping patterns, grazing man22 agement, cultural practices, or other information

23 that may be relevant to conserving and enhancing

24 soil, water, and related natural resources;
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1 ‘‘(2) a description of relevant farm or ranch re2 sources, including soil characteristics, rangeland

3 types and condition, proximity to water bodies, wild4 life habitat, or other relevant characteristics of the

5 farm or ranch related to the conservation and envi6 ronmental objectives set forth in the plan;

7 ‘‘(3) a description of specific conservation and

8 environmental objectives to be achieved;

9 ‘‘(4) to the extent practicable, specific, quan10 titative goals for achieving the conservation and en11 vironmental objectives;

12 ‘‘(5) a description of 1 or more structural prac13 tices or 1 or more land management practices, or

14 both, to be implemented to achieve the conservation

15 and environmental objectives;

16 ‘‘(6) a description of the timing and sequence

17 for implementing the structural practices or land

18 management practices, or both, that will assist the

19 operator in complying with Federal and State envi20 ronmental laws; and

21 ‘‘(7) information that will enable evaluation of

22 the effectiveness of the plan in achieving the con23 servation and environmental objectives, and that will

24 enable evaluation of the degree to which the plan

25 has been implemented.
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1 ‘‘(8) Not withstanding any provision of law, the

2 Secretary shall ensure that the process of writing,

3 developing, and assisting in the implementation of

4 plans required in the programs established under

5 this title be open to individuals in agribusiness in6 cluding but not limited to agricultural producers,

7 representatives from agricultural cooperatives, agri8 cultural input retail dealers, and certified crop advis9 ers. This process shall be included in but not limited

10 to programs and plans established under this title

11 and any other Department program using incentive,

12 technical assistance, cost-share or pilot project pro13 grams that require plans.

14 ‘‘SEC. 1238F. DUTIES OF THE SECRETARY.

15 ‘‘To the extent appropriate, the Secretary shall assist

16 an operator in achieving the conservation and environ17 mental goals of an environmental quality incentives pro18 gram plan by—

19 ‘‘(1) providing an eligibility assessment of the

20 farming or ranching operation of the operator as a

21 basis for developing the plan;

22 ‘‘(2) providing technical assistance in develop23 ing and implementing the plan;

24 ‘‘(3) providing technical assistance, cost-sharing

25 payments, or incentive payments for developing and
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1 implementing 1 or more structural practices or 1 or

2 more land management practices, as appropriate;

3 ‘‘(4) providing the operator with information,

4 education, and training to aid in implementation of

5 the plan; and

6 ‘‘(5) encouraging the operator to obtain tech7 nical assistance, cost-sharing payments, or grants

8 from other Federal, State, local, or private sources.

9 ‘‘SEC. 1238G. ELIGIBLE LANDS.

10 ‘‘Agricultural land on which a structural practice or

11 land management practice, or both, shall be eligible for

12 technical assistance, cost-sharing payments, or incentive

13 payments under this chapter include—

14 ‘‘(1) agricultural land (including cropland,

15 rangeland, pasture, and other land on which crops

16 or livestock are produced) that the Secretary deter17 mines poses a serious threat to soil, water, or related

18 resources by reason of the soil types, terrain, cli19 matic, soil, topographic, flood, or saline characteris20 tics, or other factors or natural hazards;

21 ‘‘(2) an area that is considered to be critical ag22 ricultural land on which either crop or livestock pro23 duction is carried out, as identified in a plan submit24 ted by the State under section 319 of the Federal

25 Water Pollution Control Act (33 U.S.C. 1329) as
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1 having priority problems that result from an agricul2 tural nonpoint source of pollution;

3 ‘‘(3) an area recommended by a State lead

4 agency for protection of soil, water, and related re5 sources, as designated by a Governor of a State; and

6 ‘‘(4) land that is not located within a des7 ignated or approved area, but that if permitted to

8 continue to be operated under existing management

9 practices, would defeat the purpose of the environ10 mental quality incentives program, as determined by

11 the Secretary.

12 ‘‘SEC. 1238H. LIMITATIONS ON PAYMENTS.

13 ‘‘(a) PAYMENTS.—The total amount of cost-sharing

14 and incentive payments paid to a person under this chap15 ter may not exceed—

16 ‘‘(1) $10,000 for any fiscal year; or

17 ‘‘(2) $50,000 for any multiyear contract.

18 ‘‘(b) REGULATIONS.—The Secretary shall issue regu19 lations that are consistent with section 1001 for the pur20 pose of—

21 ‘‘(1) defining the term ‘person’ as used in sub22 section (a); and

23 ‘‘(2) prescribing such rules as the Secretary de24 termines necessary to ensure a fair and reasonable
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1 application of the limitations contained in subsection

2 (a).’’.

3 Subtitle C—Conservation Funding

4 SEC. 321. CONSERVATION FUNDING.

5 (a) IN GENERAL.—Subtitle E of title XII of the Food

6 Security Act of 1985 (16 U.S.C. 3841 et seq.) is amended

7 to read as follows:

8 ‘‘Subtitle E—Funding

9 ‘‘SEC. 1241. FUNDING.

10 ‘‘(a) MANDATORY EXPENSES.—For each of fiscal

11 years 1996 through 2002, the Secretary shall use the

12 funds of the Commodity Credit Corporation to carry out

13 the programs authorized by—

14 ‘‘(1) subchapter B of chapter 1 of subtitle D

15 (including contracts extended by the Secretary pur16 suant to section 1437 of the Food, Agriculture, Con17 servation, and Trade Act of 1990 (Public Law 101–

18 624; 16 U.S.C. 3831 note));

19 ‘‘(2) subchapter C of chapter 1 of subtitle D;

20 and

21 ‘‘(3) chapter 4 of subtitle D.

22 ‘‘(b) ENVIRONMENTAL QUALITY INCENTIVES PRO23 GRAM.—

24 ‘‘(1) IN GENERAL.—For each of fiscal years

25 1996 through 2002, $200,000,000 of the funds of
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1 the Commodity Credit Corporation shall be available

2 for providing technical assistance, cost-sharing pay3 ments, and incentive payments under the environ4 mental quality incentives program under chapter 4

5 of subtitle D.

6 ‘‘(2) LIVESTOCK PRODUCTION.—For each of

7 fiscal years 1996 through 2002, 50 percent of the

8 funding available for technical assistance, cost-shar9 ing payments, and incentive payments under the en10 vironmental quality incentives program shall be tar11 geted at practices relating to livestock production.

12 ‘‘(c) ADVANCE APPROPRIATIONS TO CCC.—The Sec13 retary may use the funds of the Commodity Credit Cor14 poration to carry out chapter 3 of subtitle D, except that

15 the Secretary may not use the funds of the Corporation

16 unless the Corporation has received funds to cover the ex17 penditures from appropriations made available to carry

18 out chapter 3 of subtitle D.

19 ‘‘SEC. 1242. ADMINISTRATION.

20 ‘‘(a) PLANS.—The Secretary shall, to the extent prac21 ticable, avoid duplication in—

22 ‘‘(1) the conservation plans required for—

23 ‘‘(A) highly erodible land conservation

24 under subtitle B;
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1 ‘‘(B) the conservation reserve program es2 tablished under subchapter B of chapter 1 of

3 subtitle D; and

4 ‘‘(C) the wetlands reserve program estab5 lished under subchapter C of chapter 1 of sub6 title D; and

7 ‘‘(2) the environmental quality incentives pro8 gram established under chapter 4 of subtitle D.

9 ‘‘(b) ACREAGE LIMITATION.—

10 ‘‘(1) IN GENERAL.—The Secretary shall not en11 roll more than 25 percent of the cropland in any

12 county in the programs administered under the con13 servation reserve and wetlands reserve programs es14 tablished under subchapters B and C, respectively,

15 of chapter 1 of subtitle D. Not more than 10 percent

16 of the cropland in a county may be subject to an

17 easement acquired under the subchapters.

18 ‘‘(2) EXCEPTION.—The Secretary may exceed

19 the limitations in paragraph (1) if the Secretary de20 termines that—

21 ‘‘(A) the action would not adversely affect

22 the local economy of a county; and

23 ‘‘(B) operators in the county are having

24 difficulties complying with conservation plans

25 implemented under section 1212.
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1 ‘‘(3) SHELTERBELTS AND WINDBREAKS.—The

2 limitations established under this subsection shall

3 not apply to cropland that is subject to an easement

4 under chapter 1 or 3 of subtitle D that is used for

5 the establishment of shelterbelts and windbreaks.

6 ‘‘(c) TENANT PROTECTION.—Except for a person

7 who is a tenant on land that is subject to a conservation

8 reserve contract that has been extended by the Secretary,

9 the Secretary shall provide adequate safeguards to protect

10 the interests of tenants and sharecroppers, including pro11 vision for sharing, on a fair and equitable basis, in pay12 ments under the programs established under subtitles B

13 through D.

14 ‘‘(d) REGULATIONS.—Not later than 90 days after

15 the effective date of this subsection, the Secretary shall

16 issue regulations to implement the conservation reserve

17 and wetlands reserve programs established under chapter

18 1 of subtitle D.’’.

19 Subtitle D—National Natural Re20 sources Conservation Founda21 tion

22 SEC. 331. SHORT TITLE.

23 This subtitle may be cited as the ‘‘National Natural

24 Resources Conservation Foundation Act’’.
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1 SEC. 332. DEFINITIONS.

2 In this subtitle (unless the context otherwise re3 quires):

4 (1) BOARD.—The term ‘‘Board’’ means the

5 Board of Trustees established under section 334.

6 (2) DEPARTMENT.—The term ‘‘Department’’

7 means the United States Department of Agriculture.

8 (3) FOUNDATION.—The term ‘‘Foundation’’

9 means the National Natural Resources Conservation

10 Foundation established by section 333(a).

11 (4) SECRETARY.—The term ‘‘Secretary’’ means

12 the Secretary of Agriculture.

13 SEC. 333. NATIONAL NATURAL RESOURCES CONSERVATION

14 FOUNDATION.

15 (a) ESTABLISHMENT.—A National Natural Re16 sources Conservation Foundation is established as a chari17 table and nonprofit corporation for charitable, scientific,

18 and educational purposes specified in subsection (b). The

19 Foundation is not an agency or instrumentality of the

20 United States.

21 (b) PURPOSES.—The purposes of the Foundation are

22 to—

23 (1) promote innovative solutions to the prob24 lems associated with the conservation of natural re25 sources on private lands, particularly with respect to

26 agriculture and soil and water conservation;
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1 (2) promote voluntary partnerships between

2 government and private interests in the conservation

3 of natural resources;

4 (3) conduct research and undertake educational

5 activities, conduct and support demonstration

6 projects, and make grants to State and local agen7 cies and nonprofit organizations;

8 (4) provide such other leadership and support

9 as may be necessary to address conservation chal10 lenges, such as the prevention of excessive soil ero11 sion, enhancement of soil and water quality, and the

12 protection of wetlands, wildlife habitat, and strategi13 cally important farmland subject to urban conver14 sion and fragmentation;

15 (5) encourage, accept, and administer private

16 gifts of money and real and personal property for

17 the benefit of, or in connection with, the conserva18 tion and related activities and services of the De19 partment, particularly the Natural Resources Con20 servation Service;

21 (6) undertake, conduct, and encourage edu22 cational, technical, and other assistance, and other

23 activities, that support the conservation and related

24 programs administered by the Department (other

25 than activities carried out on National Forest Sys-
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1 tem lands), particularly the Natural Resources Con2 servation Service, except that the Foundation may

3 not enforce or administer a regulation of the De4 partment; and

5 (7) raise private funds to promote the purposes

6 of the Foundation.

7 (c) LIMITATIONS AND CONFLICTS OF INTERESTS.—

8 (1) POLITICAL ACTIVITIES.—The Foundation

9 shall not participate or intervene in a political cam10 paign on behalf of any candidate for public office.

11 (2) CONFLICTS OF INTEREST.—No director, of12 ficer, or employee of the Foundation shall partici13 pate, directly or indirectly, in the consideration or

14 determination of any question before the Foundation

15 affecting—

16 (A) the financial interests of the director,

17 officer, or employee; or

18 (B) the interests of any corporation, part19 nership, entity, organization, or other person in

20 which the director, officer, or employee—

21 (i) is an officer, director, or trustee;

22 or

23 (ii) has any direct or indirect financial

24 interest.
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1 (3) LEGISLATION OR GOVERNMENT ACTION OR

2 POLICY.—No funds of the Foundation may be used

3 in any manner for the purpose of influencing legisla4 tion or government action or policy.

5 (4) LITIGATION.—No funds of the Foundation

6 may be used to bring or join an action against the

7 United States or any State.

8 SEC. 334. COMPOSITION AND OPERATION.

9 (a) COMPOSITION.—The Foundation shall be admin10 istered by a Board of Trustees that shall consist of 9 vot11 ing members, each of whom shall be a United States citi12 zen and not a Federal officer. The Board shall be com13 posed of—

14 (1) individuals with expertise in agricultural

15 conservation policy matters;

16 (2) a representative of private sector organiza17 tions with a demonstrable interest in natural re18 sources conservation;

19 (3) a representative of statewide conservation

20 organizations;

21 (4) a representative of soil and water conserva22 tion districts;

23 (5) a representative of organizations outside the

24 Federal Government that are dedicated to natural

25 resources conservation education; and
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1 (6) a farmer or rancher.

2 (b) NONGOVERNMENTAL EMPLOYEES.—Service as a

3 member of the Board shall not constitute employment by,

4 or the holding of, an office of the United States for the

5 purposes of any Federal law.

6 (c) MEMBERSHIP.—

7 (1) INITIAL MEMBERS.—The Secretary shall

8 appoint 9 persons who meet the criteria established

9 under subsection (a) as the initial members of the

10 Board and designate 1 of the members as the initial

11 chairperson for a 2-year term.

12 (2) TERMS OF OFFICE.—

13 (A) IN GENERAL.—A member of the Board

14 shall serve for a term of 3 years, except that

15 the members appointed to the initial Board

16 shall serve, proportionately, for terms of 1, 2,

17 and 3 years, as determined by the Secretary.

18 (B) LIMITATION ON TERMS.—No individ19 ual may serve more than 2 consecutive 3-year

20 terms as a member.

21 (3) SUBSEQUENT MEMBERS.—The initial mem22 bers of the Board shall adopt procedures in the con23 stitution of the Foundation for the nomination and

24 selection of subsequent members of the Board. The

25 procedures shall require that each member, at a
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1 minimum, meets the criteria established under sub2 section (a) and shall provide for the selection of an

3 individual, who is not a Federal officer or a member

4 of the Board.

5 (d) CHAIRPERSON.—After the appointment of an ini6 tial chairperson under subsection (c)(1), each succeeding

7 chairperson of the Board shall be elected by the members

8 of the Board for a 2-year term.

9 (e) VACANCIES.—A vacancy on the Board shall be

10 filled by the Board not later than 60 days after the occur11 rence of the vacancy.

12 (f) COMPENSATION.—A member of the Board shall

13 receive no compensation from the Foundation for the serv14 ice of the member on the Board.

15 (g) TRAVEL EXPENSES.—While away from the home

16 or regular place of business of a member of the Board

17 in the performance of services for the Board, the member

18 shall be allowed travel expenses paid by the Foundation,

19 including per diem in lieu of subsistence, at the same rate

20 as a person employed intermittently in the Government

21 service would be allowed under section 5703 of title 5,

22 United States Code.

23 SEC. 335. OFFICERS AND EMPLOYEES.

24 (a) IN GENERAL.—The Board may—
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1 (1) appoint, hire, and discharge the officers and

2 employees of the Foundation, other than the ap3 pointment of the initial Executive Director of the

4 Foundation;

5 (2) adopt a constitution and bylaws for the

6 Foundation that are consistent with the purposes of

7 the Foundation and this subtitle; and

8 (3) undertake any other activities that may be

9 necessary to carry out this subtitle.

10 (b) OFFICERS AND EMPLOYEES.—

11 (1) APPOINTMENT AND HIRING.—An officer or

12 employee of the Foundation—

13 (A) shall not, by virtue of the appointment

14 or employment of the officer or employee, be

15 considered a Federal employee for any purpose,

16 including the provisions of title 5, United States

17 Code, governing appointments in the competi18 tive service, except that such an individual may

19 participate in the Federal employee retirement

20 system as if the individual were a Federal em21 ployee; and

22 (B) may not be paid by the Foundation a

23 salary in excess of $125,000 per year.

24 (2) EXECUTIVE DIRECTOR.—
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1 (A) INITIAL DIRECTOR.—The Secretary

2 shall appoint an individual to serve as the ini3 tial Executive Director of the Foundation who

4 shall serve, at the direction of the Board, as the

5 chief operating officer of the Foundation.

6 (B) SUBSEQUENT DIRECTORS.—The

7 Board shall appoint each subsequent Executive

8 Director of the Foundation who shall serve, at

9 the direction of the Board, as the chief operat10 ing officer of the Foundation.

11 (C) QUALIFICATIONS.—The Executive Di12 rector shall be knowledgeable and experienced

13 in matters relating to natural resources con14 servation.

15 SEC. 336. CORPORATE POWERS AND OBLIGATIONS OF THE

16 FOUNDATION.

17 (a) IN GENERAL.—The Foundation—

18 (1) may conduct business throughout the Unit19 ed States and the territories and possessions of the

20 United States; and

21 (2) shall at all times maintain a designated

22 agent who is authorized to accept service of process

23 for the Foundation, so that the serving of notice to,

24 or service of process on, the agent, or mailed to the
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1 business address of the agent, shall be considered as

2 service on or notice to the Foundation.

3 (b) SEAL.—The Foundation shall have an official seal

4 selected by the Board that shall be judicially noticed.

5 (c) POWERS.—To carry out the purposes of the

6 Foundation under section 333(b), the Foundation shall

7 have, in addition to the powers otherwise provided under

8 this subtitle, the usual powers of a corporation, including

9 the power—

10 (1) to accept, receive, solicit, hold, administer,

11 and use any gift, devise, or bequest, either absolutely

12 or in trust, of real or personal property or any in13 come from, or other interest in, the gift, devise, or

14 bequest;

15 (2) to acquire by purchase or exchange any real

16 or personal property or interest in property, except

17 that funds provided under section 310 may not be

18 used to purchase an interest in real property;

19 (3) unless otherwise required by instrument of

20 transfer, to sell, donate, lease, invest, reinvest, re21 tain, or otherwise dispose of any property or income

22 from property;

23 (4) to borrow money from private sources and

24 issue bonds, debentures, or other debt instruments,

25 subject to section 339, except that the aggregate
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1 amount of the borrowing and debt instruments out2 standing at any time may not exceed $1,000,000;

3 (5) to sue and be sued, and complain and de4 fend itself, in any court of competent jurisdiction,

5 except that a member of the Board shall not be per6 sonally liable for an action in the performance of

7 services for the Board, except for gross negligence;

8 (6) to enter into a contract or other agreement

9 with an agency of State or local government, edu10 cational institution, or other private organization or

11 person and to make such payments as may be nec12 essary to carry out the functions of the Foundation;

13 and

14 (7) to do any and all acts that are necessary to

15 carry out the purposes of the Foundation.

16 (d) INTEREST IN PROPERTY.—

17 (1) IN GENERAL.—The Foundation may ac18 quire, hold, and dispose of lands, waters, or other in19 terests in real property by donation, gift, devise,

20 purchase, or exchange.

21 (2) INTERESTS IN REAL PROPERTY.—For pur22 poses of this subtitle, an interest in real property

23 shall be treated, among other things, as including an

24 easement or other right for the preservation, con25 servation, protection, or enhancement of agricul-
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1 tural, natural, scenic, historic, scientific, educational,

2 inspirational, or recreational resources.

3 (3) GIFTS.—A gift, devise, or bequest may be

4 accepted by the Foundation even though the gift, de5 vise, or bequest is encumbered, restricted, or subject

6 to a beneficial interest of a private person if any

7 current or future interest in the gift, devise, or be8 quest is for the benefit of the Foundation.

9 SEC. 337. ADMINISTRATIVE SERVICES AND SUPPORT.

10 For each of fiscal years 1996 through 1998, the Sec11 retary may provide, without reimbursement, personnel, fa12 cilities, and other administrative services of the Depart13 ment to the Foundation.

14 SEC. 338. AUDITS AND PETITION OF ATTORNEY GENERAL

15 FOR EQUITABLE RELIEF.

16 (a) AUDITS.—

17 (1) IN GENERAL.—The accounts of the Foun18 dation shall be audited in accordance with Public

19 Law 88–504 (36 U.S.C. 1101 et seq.), including an

20 audit of lobbying and litigation activities carried out

21 by the Foundation.

22 (2) CONFORMING AMENDMENT.—The first sec23 tion of Public Law 88–504 (36 U.S.C. 1101) is

24 amended by adding at the end the following:
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1 ‘‘(77) The National Natural Resources Con2 servation Foundation.’’.

3 (b) RELIEF WITH RESPECT TO CERTAIN FOUNDA4 TION ACTS OR FAILURE TO ACT.—The Attorney General

5 may petition in the United States District Court for the

6 District of Columbia for such equitable relief as may be

7 necessary or appropriate, if the Foundation—

8 (1) engages in, or threatens to engage in, any

9 act, practice, or policy that is inconsistent with this

10 subtitle; or

11 (2) refuses, fails, neglects, or threatens to

12 refuse, fail, or neglect, to discharge the obligations

13 of the Foundation under this subtitle.

14 SEC. 339. RELEASE FROM LIABILITY.

15 (a) IN GENERAL.—The United States shall not be

16 liable for any debt, default, act, or omission of the Foun17 dation. The full faith and credit of the United States shall

18 not extend to the Foundation.

19 (b) STATEMENT.—An obligation issued by the Foun20 dation, and a document offering an obligation, shall in21 clude a prominent statement that the obligation is not di22 rectly or indirectly guaranteed, in whole or in part, by the

23 United States (or an agency or instrumentality of the

24 United States).
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1 SEC. 340. AUTHORIZATION OF APPROPRIATIONS.

2 There are authorized to be appropriated to the De3 partment to be made available to the Foundation

4 $1,000,000 for each of fiscal years 1997 through 1999

5 to initially establish and carry out activities of the Foun6 dation.

7 Subtitle E—Miscellaneous

8 SEC. 351. FLOOD RISK REDUCTION.

9 (a) IN GENERAL.—During fiscal years 1996 through

10 2002, the Secretary of Agriculture (referred to in this sec11 tion as the ‘‘Secretary’’) may enter into a contract with

12 contract acreage under title I on a farm with land that

13 is frequently flooded.

14 (b) DUTIES OF PRODUCERS.—Under the terms of the

15 contract, with respect to acres that are subject to the con16 tract, the producer must agree to—

17 (1) the termination of any contract acreage;

18 (2) forgo loans for contract commodities, oil19 seeds, and extra long staple cotton;

20 (3) not apply for crop insurance issued or rein21 sured by the Secretary;

22 (4) comply with applicable wetlands and high

23 erodible land conservation compliance requirements

24 established under title XII of the Food Security Act

25 of 1985 (16 U.S.C. 3801 et seq.);
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1 (5) not apply for any conservation program

2 payments from the Secretary;

3 (6) not apply for disaster program benefits pro4 vided by the Secretary; and

5 (7) refund the payments, with interest, issued

6 under the flood risk reduction contract to the Sec7 retary, if the producer violates the terms of the con8 tract or if the producer transfers the property to an9 other person who violates the contract.

10 (c) DUTIES OF SECRETARY.—In return for a flood

11 risk reduction contract entered into by a producer under

12 this section, the Secretary shall agree to pay the producer

13 for the 1996 through 2002 crops not more than 95 per14 cent of the projected contract payments under title I, and

15 not more than 95 percent of the projected payments and

16 subsidies from the Federal Crop Insurance Corporation.

17 (d) COMMODITY CREDIT CORPORATION.—The Sec18 retary shall carry out the program authorized by this sec19 tion through the Commodity Credit Corporation.

20 SEC. 352. FORESTRY.

21 (a) FORESTRY INCENTIVES PROGRAM.—Section 4 of

22 the Cooperative Forestry Assistance Act of 1978 (16

23 U.S.C. 2103) is amended by striking subsection (k).

24 (b) OFFICE OF INTERNATIONAL FORESTRY.—Sec25 tion 2405 of the Food, Agriculture, Conservation, and
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1 Trade Act of 1990 (7 U.S.C. 6704) is amended by adding

2 at the end the following:

3 ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There

4 are authorized each fiscal year such sums as are necessary

5 to carry out this section.’’.

6 SEC. 353. STATE TECHNICAL COMMITTEES.

7 Section 1261(c) of the Food Security Act of 1985 (16

8 U.S.C. 3861(c)) is amended—

9 (1) in paragraph (7), by striking ‘‘and’’ at the

10 end;

11 (2) in paragraph (8), by striking the period at

12 the end and inserting a semicolon; and

13 (3) by adding at the end the following:

14 ‘‘(9) agricultural producers;

15 ‘‘(10) other nonprofit organizations with de16 monstrable expertise;

17 ‘‘(11) persons knowledgeable about the eco18 nomic and environmental impact of conservation

19 techniques and programs; and

20 ‘‘(12) agribusiness.

21 SEC. 354. CONSERVATION OF PRIVATE GRAZING LAND.

22 (a) FINDINGS.—Congress finds that—

23 (1) privately owned grazing land constitutes

nearly 1 24 ⁄2 of the non-Federal land of the United
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1 States and is basic to the environmental, social, and

2 economic stability of rural communities;

3 (2) privately owned grazing land contains a

4 complex set of interactions among soil, water, air,

5 plants, and animals;

6 (3) grazing land constitutes the single largest

7 watershed cover type in the United States and con8 tributes significantly to the quality and quantity of

9 water available for all of the many uses of the land;

10 (4) private grazing land constitutes the most

11 extensive wildlife habitat in the United States;

12 (5) private grazing land can provide opportuni13 ties for improved nutrient management from land

14 application of animal manures and other by-product

15 nutrient resources;

16 (6) owners and managers of private grazing

17 land need to continue to recognize conservation

18 problems when the problems arise and receive sound

19 technical assistance to improve or conserve grazing

20 land resources to meet ecological and economic de21 mands;

22 (7) new science and technology must contin23 ually be made available in a practical manner so

24 owners and managers of private grazing land may
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1 make informed decisions concerning vital grazing

2 land resources;

3 (8) agencies of the Department of Agriculture

4 with private grazing land responsibilities are the

5 agencies that have the expertise and experience to

6 provide technical assistance, education, and research

7 to owners and managers of private grazing land for

8 the long-term productivity and ecological health of

9 grazing land;

10 (9) although competing demands on private

11 grazing land resources are greater than ever before,

12 assistance to private owners and managers of private

13 grazing land is currently limited and does not meet

14 the demand and basic need for adequately sustaining

15 or enhancing the private grazing lands resources;

16 and

17 (10) privately owned grazing land can be en18 hanced to provide many benefits to all Americans

19 through voluntary cooperation among owners and

20 managers of the land, local conservation districts,

21 and the agencies of the Department of Agriculture

22 responsible for providing assistance to owners and

23 managers of land and to conservation districts.

24 (b) PURPOSE.—It is the purpose of this section to

25 authorize the Secretary of Agriculture to provide a coordi-
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1 nated technical, educational, and related assistance pro2 gram to conserve and enhance private grazing land re3 sources and provide related benefits to all citizens of the

4 United States by—

5 (1) establishing a coordinated and cooperative

6 Federal, State, and local grazing conservation pro7 gram for management of private grazing land;

8 (2) strengthening technical, educational, and re9 lated assistance programs that provide assistance to

10 owners and managers of private grazing land;

11 (3) conserving and improving wildlife habitat on

12 private grazing land;

13 (4) conserving and improving fish habitat and

14 aquatic systems through grazing land conservation

15 treatment;

16 (5) protecting and improving water quality;

17 (6) improving the dependability and consistency

18 of water supplies;

19 (7) identifying and managing weed, noxious

20 weed, and brush encroachment problems on private

21 grazing land; and

22 (8) integrating conservation planning and man23 agement decisions by owners and managers of pri24 vate grazing land, on a voluntary basis.

25 (c) DEFINITIONS.—In this section:
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1 (1) PRIVATE GRAZING LAND.—The term ‘‘pri2 vate grazing land’’ means privately owned, State3 owned, tribally-owned, and any other non-federally

4 owned rangeland, pastureland, grazed forest land,

5 and hay land.

6 (2) SECRETARY.—The term ‘‘Secretary’’ means

7 the Secretary of Agriculture, acting through the

8 Natural Resources Conservation Service.

9 (d) PRIVATE GRAZING LAND CONSERVATION ASSIST10 ANCE.—

11 (1) ASSISTANCE TO GRAZING LANDOWNERS

12 AND OTHERS.—Subject to the availability of appro13 priations, the Secretary shall establish a voluntary

14 program to provide technical, educational, and relat15 ed assistance to owners and managers of private

16 grazing land and public agencies, through local con17 servation districts, to enable the landowners, man18 agers, and public agencies to voluntarily carry out

19 activities that are consistent with this section, in20 cluding—

21 (A) maintaining and improving private

22 grazing land and the multiple values and uses

23 that depend on private grazing land;

24 (B) implementing grazing land manage25 ment technologies;
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1 (C) managing resources on private grazing

2 land, including—

3 (i) planning, managing, and treating

4 private grazing land resources;

5 (ii) ensuring the long-term sustain6 ability of private grazing land resources;

7 (iii) harvesting, processing, and mar8 keting private grazing land resources; and

9 (iv) identifying and managing weed,

10 noxious weed, and brush encroachment

11 problems;

12 (D) protecting and improving the quality

13 and quantity of water yields from private graz14 ing land;

15 (E) maintaining and improving wildlife

16 and fish habitat on private grazing land;

17 (F) enhancing recreational opportunities

18 on private grazing land;

19 (G) maintaining and improving the aes20 thetic character of private grazing lands; and

21 (H) identifying the opportunities and en22 couraging the diversification of private grazing

23 land enterprises.

24 (2) PROGRAM ELEMENTS.—
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1 (A) FUNDING.—The program under para2 graph (1) shall be funded through a specific

3 line-item in the annual appropriations for the

4 Natural Resources Conservation Service.

5 (B) TECHNICAL ASSISTANCE AND EDU6 CATION.—Personnel of the Department of Agri7 culture trained in pasture and range manage8 ment shall be made available under the pro9 gram to deliver and coordinate technical assist10 ance and education to owners and managers of

11 private grazing land, at the request of the own12 ers and managers.

13 (e) GRAZING TECHNICAL ASSISTANCE SELF14 HELP.—

15 (1) FINDINGS.—Congress finds that—

16 (A) there is a severe lack of technical as17 sistance for grazing producers;

18 (B) the Federal budget precludes any sig19 nificant expansion, and may force a reduction

20 of, current levels of technical support; and

21 (C) farmers and ranchers have a history of

22 cooperatively working together to address com23 mon needs in the promotion of their products

24 and in the drainage of wet areas through drain25 age districts.
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1 (2) ESTABLISHMENT OF GRAZING DEMONSTRA2 TION.—The Secretary may establish 2 grazing man3 agement demonstration districts at the recommenda4 tion of the Grazing Lands Conservation Initiative

5 Steering Committee.

6 (3) PROCEDURE.—

7 (A) PROPOSAL.—Within a reasonable time

8 after the submission of a request of an organi9 zation of farmers or ranchers engaged in graz10 ing, the Secretary shall propose that a grazing

11 management district be established.

12 (B) FUNDING.—The terms and conditions

13 of the funding and operation of the grazing

14 management district shall be proposed by the

15 producers.

16 (C) APPROVAL.—The Secretary shall ap17 prove the proposal if the Secretary determines

18 that the proposal—

19 (i) is reasonable;

20 (ii) will promote sound grazing prac21 tices; and

22 (iii) contains provisions similar to the

23 provisions contained in the promotion or24 ders in effect on the effective date of this

25 section.
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1 (D) AREA INCLUDED.—The area proposed

2 to be included in a grazing management district

3 shall be determined by the Secretary on the

4 basis of a petition by farmers or ranchers.

5 (E) AUTHORIZATION.—The Secretary may

6 use authority under the Agricultural Adjust7 ment Act (7 U.S.C. 601 et seq.), reenacted with

8 amendments by the Agricultural Marketing

9 Agreement Act of 1937, to operate, on a dem10 onstration basis, a grazing management dis11 trict.

12 (F) ACTIVITIES.—The activities of a graz13 ing management district shall be scientifically

14 sound activities, as determined by the Secretary

15 in consultation with a technical advisory com16 mittee composed of ranchers, farmers, and tech17 nical experts.

18 (f) AUTHORIZATION OF APPROPRIATIONS.—There

19 are authorized to be appropriated to carry out this sec20 tion—

21 (1) $20,000,000 for fiscal year 1996;

22 (2) $40,000,000 for fiscal year 1997; and

23 (3) $60,000,000 for fiscal year 1998 and each

24 subsequent fiscal year.
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1 SEC. 355. CONFORMING AMENDMENTS.

2 (a) AGRICULTURAL CONSERVATION PROGRAM.—

3 (1) ELIMINATION.—

4 (A) Section 8 of the Soil Conservation and

5 Domestic Allotment Act (16 U.S.C. 590h) is

6 amended—

7 (i) in subsection (b)—

8 (I) by striking paragraphs (1)

9 through (4) and inserting the follow10 ing:

11 ‘‘(1) ENVIRONMENTAL QUALITY INCENTIVES

12 PROGRAM.—The Secretary shall provide technical as13 sistance, cost share payments, and incentive pay14 ments to operators through the environmental qual15 ity incentives program in accordance with chapter 2

16 of subtitle D of the Food Security Act of 1985 (16

17 U.S.C. 3838 et seq.).’’; and

18 (II) by striking paragraphs (6)

19 through (8); and

20 (ii) by striking subsections (d), (e),

21 and (f).

22 (B) The first sentence of section 11 of the

23 Soil Conservation and Domestic Allotment Act

24 (16 U.S.C. 590k) is amended by striking ‘‘per25 formance: Provided further,’’ and all that fol-
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1 lows through ‘‘or other law’’ and inserting ‘‘per2 formance’’.

3 (C) Section 14 of the Act (16 U.S.C.

4 590n) is amended—

5 (i) in the first sentence, by striking

6 ‘‘or 8’’; and

7 (ii) by striking the second sentence.

8 (D) Section 15 of the Act (16 U.S.C.

9 590o) is amended—

10 (i) in the first undesignated para11 graph—

12 (I) in the first sentence, by strik13 ing ‘‘sections 7 and 8’’ and inserting

14 ‘‘section 7’’; and

15 (II) by striking the third sen16 tence; and

17 (ii) by striking the second undesig18 nated paragraph.

19 (2) CONFORMING AMENDMENTS.—

20 (A) Paragraph (1) of the last proviso of

21 the matter under the heading ‘‘CONSERVATION

22 RESERVE PROGRAM’’ under the heading ‘‘SOIL

23 BANK PROGRAMS’’ of title I of the Department

24 of Agriculture and Farm Credit Administration

25 Appropriation Act, 1959 (72 Stat. 195; 7
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1 U.S.C. 1831a) is amended by striking ‘‘Agricul2 tural Conservation Program’’ and inserting

3 ‘‘environmental quality incentives program es4 tablished under chapter 2 of subtitle D of the

5 Food Security Act of 1985 (16 U.S.C. 3838 et

6 seq.)’’.

7 (B) Section 4 of the Cooperative Forestry

8 Assistance Act of 1978 (16 U.S.C. 2103) is

9 amended by striking ‘‘as added by the Agri10 culture and Consumer Protection Act of 1973’’

11 each place it appears in subsections (d) and (i)

12 and inserting ‘‘as in effect before the amend13 ment made by section 355(a)(1) of the Agricul14 tural Reform and Improvement Act of 1996’’.

15 (C) Section 226(b)(4) of the Department

16 of Agriculture Reorganization Act of 1994 (7

17 U.S.C. 6932(b)(4)) is amended by striking

18 ‘‘and the agricultural conservation program

19 under the Soil Conservation and Domestic Al20 lotment Act (16 U.S.C. 590g et seq.)’’.

21 (D) Section 246(b)(8) of the Department

22 of Agriculture Reorganization Act of 1994 (7

23 U.S.C. 6962(b)(8)) is amended by striking

24 ‘‘and the agricultural conservation program
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1 under the Soil Conservation and Domestic Al2 lotment Act (16 U.S.C. 590g et seq.)’’.

3 (E) Section 1271(c)(3)(C) of the Food,

4 Agriculture, Conservation, and Trade Act of

5 1990 (16 U.S.C. 2106a(c)(3)(C)) is amended

6 by striking ‘‘Agricultural Conservation Program

7 established under section 16(b) of the Soil Con8 servation and Domestic Allotment Act (16

9 U.S.C. 590h, 590l, or 590p)’’ and inserting

10 ‘‘environmental quality incentives program es11 tablished under chapter 2 of subtitle D of the

12 Food Security Act of 1985 (16 U.S.C. 3838 et

13 seq.)’’.

14 (F) Section 126(a)(5) of the Internal Rev15 enue Code of 1986 is amended to read as fol16 lows:

17 ‘‘(5) The environmental quality incentives pro18 gram established under chapter 2 of subtitle D of

19 the Food Security Act of 1985 (16 U.S.C. 3838 et

20 seq.).’’.

21 (G) Section 304(a) of the Lake Champlain

22 Special Designation Act of 1990 (Public Law

23 101–596; 33 U.S.C. 1270 note) is amended—

24 (i) in the subsection heading, by strik25 ing ‘‘SPECIAL PROJECT AREA UNDER THE
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1 AGRICULTURAL CONSERVATION PRO2 GRAM’’ and inserting ‘‘A PRIORITY AREA

3 UNDER THE ENVIRONMENTAL QUALITY

4 INCENTIVES PROGRAM’’; and

5 (ii) in paragraph (1), by striking

6 ‘‘special project area under the Agricul7 tural Conservation Program established

8 under section 8(b) of the Soil Conservation

9 and Domestic Allotment Act (16 U.S.C.

10 590h(b))’’ and inserting ‘‘priority area

11 under the environmental quality incentives

12 program established under chapter 2 of

13 subtitle D of the Food Security Act of

14 1985 (16 U.S.C. 3838 et seq.)’’.

15 (H) Section 6 of the Department of Agri16 culture Organic Act of 1956 (70 Stat. 1033) is

17 amended by striking subsection (b).

18 (b) GREAT PLAINS CONSERVATION PROGRAM.—

19 (1) ELIMINATION.—Section 16 of the Soil Con20 servation and Domestic Allotment Act (16 U.S.C.

21 590p) is repealed.

22 (2) CONFORMING AMENDMENTS.—

23 (A) The Agricultural Adjustment Act of

24 1938 is amended by striking ‘‘Great Plains pro25 gram’’ each place it appears in sections
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1 344(f)(8) and 377 (7 U.S.C. 1344(f)(8) and

2 1377) and inserting ‘‘environmental quality in3 centives program established under chapter 2 of

4 subtitle D of the Food Security Act of 1985 (16

5 U.S.C. 3838 et seq.)’’.

6 (B) Section 246(b) of the Department of

7 Agriculture Reorganization Act of 1994 (7

8 U.S.C. 6962(b)) is amended by striking para9 graph (2).

10 (C) Section 126(a) of the Internal Revenue

11 Code of 1986 is amended—

12 (i) by striking paragraph (6); and

13 (ii) by redesignating paragraphs (7)

14 through (10) as paragraphs (6) through

15 (9), respectively.

16 (c) COLORADO RIVER BASIN SALINITY CONTROL

17 PROGRAM.—

18 (1) ELIMINATION.—Section 202 of the Colo19 rado River Basin Salinity Control Act (43 U.S.C.

20 1592) is amended by striking subsection (c).

21 (2) CONFORMING AMENDMENT.—Section

22 246(b) of the Department of Agriculture Reorga23 nization Act of 1994 (7 U.S.C. 6962(b)) is amended

24 by striking paragraph (6).
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1 (d) RURAL ENVIRONMENTAL CONSERVATION PRO2 GRAM.—

3 (1) ELIMINATION.—Title X of the Agricultural

4 Act of 1970 (16 U.S.C. 1501 et seq.) is repealed.

5 (2) CONFORMING AMENDMENTS.—Section

6 246(b) of the Department of Agriculture Reorga7 nization Act of 1994 (7 U.S.C. 6962(b)) is amend8 ed—

9 (A) by striking paragraph (1); and

10 (B) by redesignating paragraphs (2)

11 through (8) as paragraphs (1) through (7), re12 spectively.

13 (e) OTHER CONSERVATION PROVISIONS.—Subtitle F

14 of title XII of the Food Security Act of 1985 (16 U.S.C.

15 2005a and 2101 note) is repealed.

16 (f) COMMODITY CREDIT CORPORATION CHARTER

17 ACT.—Section 5(g) of the Commodity Credit Corporation

18 Charter Act (15 U.S.C. 714c(g)) is amended to read as

19 follows:

20 ‘‘(g) Carry out conservation functions and pro21 grams.’’.

22 (g) RESOURCE CONSERVATION.—

23 (1) ELIMINATION.—Subtitles A, B, D, E, F, G,

24 and J of title XV of the Agriculture and Food Act
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1 of 1981 (95 Stat. 1328; 16 U.S.C. 3401 et seq.) are

2 repealed.

3 (2) CONFORMING AMENDMENT.—Section 739

4 of the Agriculture, Rural Development, Food and

5 Drug Administration, and Related Agencies Appro6 priations Act, 1982 (7 U.S.C. 2272a), is repealed.

7 (h) ENVIRONMENTAL EASEMENT PROGRAM.—Sec8 tion 1239(a) of the Food Security Act of 1985 (16 U.S.C.

9 3839(a)) is amended by striking ‘‘1991 through 1995’’

10 and inserting ‘‘1996 through 2002’’.

11 (i) RESOURCE CONSERVATION AND DEVELOPMENT

12 PROGRAM.—Section 1538 of the Agriculture and Food

13 Act of 1981 (16 U.S.C. 3461) is amended by striking

14 ‘‘1991 through 1995’’ and inserting ‘‘1996 through

15 2002’’.

16 (j) TECHNICAL AMENDMENT.—The first sentence of

17 the matter under the heading ‘‘Commodity Credit Cor18 poration’’ of Public Law 99–263 (100 Stat. 59; 16 U.S.C.

19 3841 note) is amended by striking ‘‘: Provided further,’’

20 and all that follows through ‘‘Acts’’.

21 (k) AGRICULTURAL WATER QUALITY INCENTIVES

22 PROGRAM.—Chapter 2 of subtitle D of title XII of the

23 Food Security Act of 1985 (16 U.S.C. 3838 et seq.) is

24 repealed.
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1 SEC. 356. WATER BANK PROGRAM.

2 Section 1230 of the Food Security Act of 1985 (16

3 U.S.C. 3830) is amended by adding at the end the follow4 ing:

5 ‘‘(d) WATER BANK PROGRAM.—For purposes of this

6 Act, acreage enrolled, prior to the date of enactment of

7 this subsection, in the water bank program authorized by

8 the Water Bank Act (16 U.S.C. 1301 et seq.) shall be

9 considered to have been enrolled in the conservation re10 serve program on the date the acreage was enrolled in the

11 water bank program. Payments shall continue at the exist12 ing water bank rates.’’.

13 SEC. 357. FLOOD WATER RETENTION PILOT PROJECTS.

14 Section 16 of the Soil Conservation and Domestic Al15 lotment Act (16 U.S.C. 590p) is amended by adding at

16 the end the following:

17 ‘‘(l) FLOOD WATER RETENTION PILOT PROJECTS.—

18 ‘‘(1) IN GENERAL.—In cooperation with States,

19 the Secretary shall carry out at least 1 but not more

20 than 2 pilot projects to create and restore natural

21 water retention areas to control storm water and

22 snow melt runoff within closed drainage systems.

23 ‘‘(2) PRACTICES.—To carry out paragraph (1),

24 the Secretary shall provide cost-sharing and tech25 nical assistance for the establishment of non26 structural landscape management practices, includ-
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1 ing agricultural tillage practices and restoration, en2 hancement, and creation of wetland characteristics.

3 ‘‘(3) FUNDING.—

4 ‘‘(A) LIMITATION.—The funding used by

5 the Secretary to carry out this subsection shall

6 not exceed $10,000,000 per project.

7 ‘‘(B) USE OF COMMODITY CREDIT COR8 PORATION.—The Secretary shall use the funds,

9 facilities, and authorities of the Commodity

10 Credit Corporation to carry out this subsection.

11 ‘‘(4) ADDITIONAL PILOT PROJECTS.—

12 ‘‘(A) EVALUATION.—Not later than 2

13 years after a pilot project is implemented, the

14 Secretary shall evaluate the extent to which the

15 project has reduced or may reduce Federal out16 lays for emergency spending and unplanned in17 frastructure maintenance by an amount that

18 exceeds the Federal cost of the project.

19 ‘‘(B) ADDITIONAL PROJECTS.—If the Sec20 retary determines that pilot projects carried out

21 under this subsection have reduced or may re22 duce Federal outlays as described in subpara23 graph (A), the Secretary may carry out, in ac24 cordance with this subsection, pilot projects in
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1 addition to the projects authorized under para2 graph (1).’’.

3 SEC. 358. WETLAND CONSERVATION EXEMPTION.

4 Section 1222(b)(1) of the Food Security Act of 1985

5 (16 U.S.C. 3822(b)(1)) is amended—

6 (1) in subparagraph (C), by striking ‘‘or’’ at

7 the end; and

8 (2) by adding at the end the following:

9 ‘‘(E) converted wetland, if—

10 ‘‘(i) the extent of the conversion is

11 limited to the reversion to conditions that

12 will be at least equivalent to the wetland

13 functions and values that existed prior to

14 implementation of a voluntary wetland res15 toration, enhancement, or creation action;

16 ‘‘(ii) technical determinations of the

17 prior site conditions and the restoration,

18 enhancement, or creation action have been

19 adequately documented in a plan approved

20 by the Natural Resources Conservation

21 Service prior to implementation; and

22 ‘‘(iii) the conversion action proposed

23 by the private landowner is approved by

24 the Natural Resources Conservation Serv25 ice prior to implementation; or’’.
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1 SEC. 359. FLOODPLAIN EASEMENTS.

2 Section 403 of the Agricultural Credit Act of 1978

3 (16 U.S.C. 2203) is amended by inserting ‘‘, including the

4 purchase of floodplain easements,’’ after ‘‘emergency

5 measures’’.

6 SEC. 360. RESOURCE CONSERVATION AND DEVELOPMENT

7 PROGRAM REAUTHORIZATION.

8 Section 1538 of the Agriculture and Food Act of

9 1981 (16 U.S.C. 3461) is amended by striking ‘‘1991

10 through 1995’’ and inserting ‘‘1996 through 2001’’.

11 SEC. 361. CONSERVATION RESERVE NEW ACREAGE.

12 Section 1231(a) of the Food Security Act of 1985

13 (16 U.S.C. 3831(a)) is amended by adding at the end the

14 following: ‘‘The Secretary may enter into 1 or more new

15 contracts to enroll acreage in a quantity equal to the quan16 tity of acreage covered by any contract that terminates

17 after the date of enactment of the Agricultural Market

18 Transition Act.’’.

19 SEC. 362. REPEAL OF REPORT REQUIREMENT.

20 Section 1342 of title 44, United States Code, is re21 pealed.

22 SEC. 363. WATERSHED PROTECTION AND FLOOD PREVEN23 TION ACT AMENDMENTS.

24 (a) DECLARATION OF POLICY.—The first section of

25 the Watershed Protection and Flood Prevention Act (16

26 U.S.C. 1001) is amended to read as follows:
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1 ‘‘SECTION 1. DECLARATION OF POLICY.

2 ‘‘Erosion, flooding, sedimentation, and loss of natural

3 habitats in the watersheds and waterways of the United

4 States cause loss of life, damage to property, and a reduc5 tion in the quality of environment and life of citizens. It

6 is therefore the sense of Congress that the Federal Gov7 ernment should join with States and their political subdivi8 sions, public agencies, conservation districts, flood preven9 tion or control districts, local citizens organizations, and

10 Indian tribes for the purpose of conserving, protecting, re11 storing, and improving the land and water resources of

12 the United States and the quality of the environment and

13 life for watershed residents across the United States.’’.

14 (b) DEFINITIONS.—

15 (1) WORKS OF IMPROVEMENT.—Section 2 of

16 the Act (16 U.S.C. 1002) is amended, with respect

17 to the term ‘‘works of improvement’’—

18 (A) in paragraph (1), by inserting ‘‘, non19 structural,’’ after ‘‘structural’’;

20 (B) in paragraph (2), by striking ‘‘or’’ at

21 the end;

22 (C) by redesignating paragraph (3) as

23 paragraph (11);

24 (D) by inserting after paragraph (2) the

25 following new paragraphs:
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1 ‘‘(3) a land treatment or other nonstructural

2 practice, including the acquisition of easements or

3 real property rights, to meet multiple watershed

4 needs,

5 ‘‘(4) the restoration and monitoring of the

6 chemical, biological, and physical structure, diver7 sity, and functions of waterways and their associated

8 ecological systems,

9 ‘‘(5) the restoration or establishment of wetland

10 and riparian environments as part of a multi-objec11 tive management system that provides floodwater or

12 storm water storage, detention, and attenuation, nu13 trient filtering, fish and wildlife habitat, and en14 hanced biological diversity,

15 ‘‘(6) the restoration of steam channel forms,

16 functions, and diversity using the principles of

17 biotechnical slope stabilization to reestablish a mean18 dering, bankfull flow channels, riparian vegetation,

19 and floodplains,

20 ‘‘(7) the establishment and acquisition of multi21 objective riparian and adjacent flood prone lands, in22 cluding greenways, for sediment storage and flood23 water storage,

24 ‘‘(8) the protection, restoration, enhancement

25 and monitoring of surface and groundwater quality,
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1 including measures to improve the quality of water

2 emanating from agricultural lands and facilities,

3 ‘‘(9) the provision of water supply and munici4 pal and industrial water supply for rural commu5 nities having a population of less than 55,000, ac6 cording to the most recent decennial census of the

7 United States,

8 ‘‘(10) outreach to and organization of local citi9 zen organizations to participate in project design

10 and implementation, and the training of project vol11 unteers and participants in restoration and monitor12 ing techniques, or’’; and

13 (E) in paragraph (11) (as so redesig14 nated)—

15 (i) by inserting in the first sentence

16 after ‘‘proper utilization of land’’ the fol17 lowing: ‘‘, water, and related resources’’;

18 and

19 (ii) by striking the sentence that man20 dates that 20 percent of total project bene21 fits be directly related to agriculture.

22 (2) LOCAL ORGANIZATION.—Such section is

23 further amended, with respect to the term ‘‘local or24 ganization’’, by adding at the end the following new

25 sentence: ‘‘The term includes any nonprofit organi-
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1 zation (defined as having tax exempt status under

2 section 501(c)(3) of the Internal Revenue Code of

3 1986) that has authority to carry out and maintain

4 works of improvement or is developing and imple5 menting a work of improvement in partnership with

6 another local organization that has such authority.’’.

7 (3) WATERWAY.—Such section is further

8 amended by adding at the end the following new def9 inition:

10 ‘‘WATERWAY.—The term ‘waterway’ means, on pub11 lic or private land, any natural, degraded, seasonal, or cre12 ated wetland on public or private land, including rivers,

13 streams, riparian areas, marshes, ponds, bogs, mudflats,

14 lakes, and estuaries. The term includes any natural or

15 manmade watercourse which is culverted, channelized, or

16 vegetatively cleared, including canals, irrigation ditches,

17 drainage wages, and navigation, industrial, flood control

18 and water supply channels.’’.

19 (c) ASSISTANCE TO LOCAL ORGANIZATIONS.—Sec20 tion 3 of the Act (16 U.S.C. 1003) is amended—

21 (1) in paragraph (1), by inserting after ‘‘(1)’’

22 the following ‘‘to provide technical assistance to help

23 local organizations’’;

24 (2) in paragraph (2)—
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1 (A) by inserting after ‘‘(2)’’ the following:

2 ‘‘to provide technical assistance to help local or3 ganizations’’; and

4 (B) by striking ‘‘engineering’’ and insert5 ing ‘‘technical and scientific’’; and

6 (3) by striking paragraph (3) and inserting the

7 following new paragraph:

8 ‘‘(3) to make allocations of costs to the project

9 or project components to determine whether the

10 total of all environmental, social, and monetary ben11 efits exceed costs;’’.

12 (d) COST SHARE ASSISTANCE.—

13 (1) AMOUNT OF ASSISTANCE.—Section 3A of

14 the Act (16 U.S.C. 1003a) is amended by striking

15 subsection (b) and inserting the following:

16 ‘‘(b) NONSTRUCTURAL PRACTICES.—Notwithstand17 ing any other provision of this Act, Federal cost share as18 sistance to local organizations for the planning and imple19 mentation of nonstructural works of improvement may be

20 provided using funds appropriated for the purposes of this

21 Act for an amount not exceeding 75 percent of the total

22 installation costs.

23 ‘‘(c) STRUCTURAL PRACTICES.—Notwithstanding

24 any other provision of this Act, Federal cost share assist25 ance to local organizations for the planning and implemen-
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1 tation of structural works of improvement may be pro2 vided using funds appropriated for the purposes of this

3 Act for 50 percent of the total cost, including the cost

4 of mitigating damage to fish and wildlife habitat and the

5 value of any land or interests in land acquired for the work

6 of improvement.

7 ‘‘(d) SPECIAL RULE FOR LIMITED RESOURCE COM8 MUNITIES.—Notwithstanding any other provision of this

9 Act, the Secretary may provide cost share assistance to

10 a limited resource community for any works of improve11 ment, using funds appropriated for the purposes of this

12 Act, for an amount not to exceed 90 percent of the total

13 cost.

14 ‘‘(e) TREATMENT OF OTHER FEDERAL FUNDS.—Not

15 more than 50 percent of the non-Federal cost share may

16 be satisfied using funds from other Federal agencies.’’.

17 (2) CONDITIONS ON ASSISTANCE.—Section 4(1)

18 of the Act (16 U.S.C. 1004(1)) is amended by strik19 ing ‘‘, without cost to the Federal Government from

20 funds appropriated for the purposes of this Act,’’.

21 (e) BENEFIT COST ANALYSIS.—Section 5(1) of the

22 Act (16 U.S.C. 1005(1)) is amended by striking ‘‘the ben23 efits’’ and inserting ‘‘the total benefits, including environ24 mental, social, and monetary benefits,’’.
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1 (f) PROJECT PRIORITIZATION.—The Watershed Pro2 tection and Flood Prevention Act is amended by inserting

3 after section 5 (16 U.S.C. 1005) the following new section:

4 ‘‘SEC. 5A. FUNDING PRIORITIES.

5 ‘‘In making funding decisions under this Act, the

6 Secretary shall give priority to projects with one or more

7 of the following attributes:

8 ‘‘(1) Projects providing significant improve9 ments in ecological values and functions in the

10 project area.

11 ‘‘(2) Projects that enhance the long-term health

12 of local economies or generate job or job training op13 portunities for local residents, including Youth Con14 servation and Service Corps participants and dis15 placed resource harvesters.

16 ‘‘(3) Projects that provide protection to human

17 health, safety, and property.

18 ‘‘(4) Projects that directly benefit economically

19 disadvantaged communities and enhance participa20 tion by local residents of such communities.

21 ‘‘(5) Projects that restore or enhance fish and

22 wildlife species of commercial, recreational, subsist23 ence or scientific concern.
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1 ‘‘(6) Projects or components of projects that

2 can be planned, designed, and implemented within

3 two years.’’.

4 (g) TRANSFER OF FUNDS.—The Watershed Protec5 tion and Flood Prevention Act (16 U.S.C. 1001–1010) is

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

7 ‘‘SEC. 14. TRANSFERS OF FUNDS.

8 ‘‘The Secretary may accept transfers of funds from

9 other Federal departments and agencies in order to carry

10 out projects under this Act.’’.

11 SEC. 364. ABANDONMENT OF CONVERTED WETLANDS.

12 Section 1222 of the Food Security Act of 1985 (16

13 U.S.C. 3822) is amended by adding at the end the follow14 ing:

15 ‘‘(k) ABANDONMENT OF CONVERTED WETLANDS.—

16 The Secretary shall not determine that a prior converted

17 or cropped wetland is abandoned, and therefore that the

18 wetland is subject to this subtitle, on the basis that a pro19 ducer has not planted an agricultural crop on the prior

20 converted or cropped wetland after the date of enactment

21 of this subsection, so long as any use of the wetland there22 after is limited to agricultural purposes.’’.
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1 TITLE IV—NUTRITION

2 ASSISTANCE

3 SEC. 401. FOOD STAMP PROGRAM.

4 (a) DISQUALIFICATION OF A STORE OR CONCERN.—

5 Section 12 of the Food Stamp Act of 1977 (7 U.S.C.

6 2021) is amended—

7 (1) by striking the section heading;

8 (2) by striking ‘‘SEC. 12. (a) Any’’ and insert9 ing the following:

10 ‘‘SEC. 12. CIVIL MONEY PENALTIES AND DISQUALIFICATION

11 OF RETAIL FOOD STORES AND WHOLESALE

12 FOOD CONCERNS.

13 ‘‘(a) DISQUALIFICATION.—

14 ‘‘(1) IN GENERAL.—An’’;

15 (3) by adding at the end of subsection (a) the

16 following:

17 ‘‘(2) EMPLOYING CERTAIN PERSONS.—A retail

18 food store or wholesale food concern shall be dis19 qualified from participation in the food stamp pro20 gram if the store or concern knowingly employs a

21 person who has been found by the Secretary, or a

22 Federal, State, or local court, to have, within the

23 preceding 3-year period—

24 ‘‘(A) engaged in the trading of a firearm,

25 ammunition, an explosive, or a controlled sub-
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1 stance (as defined in section 102 of the Con2 trolled Substances Act (21 U.S.C. 802)) for a

3 coupon; or

4 ‘‘(B) committed any act that constitutes a

5 violation of this Act or a State law relating to

6 using, presenting, transferring, acquiring, re7 ceiving, or possessing a coupon, authorization

8 card, or access device.’’; and

9 (4) in subsection (b)(3)(B), by striking ‘‘neither

10 the ownership nor management of the store or food

11 concern was aware’’ and inserting ‘‘the ownership of

12 the store or food concern was not aware’’.

13 (b) EMPLOYMENT AND TRAINING.—Section 16(h)(1)

14 of the Food Stamp Act of 1977 (7 U.S.C. 2025(h)(1))

15 is amended by striking ‘‘1995’’ each place it appears and

16 inserting ‘‘2002’’.

17 (c) AUTHORIZATION OF PILOT PROJECTS.—The last

18 sentence of section 17(b)(1)(A) of the Food Stamp Act

19 of 1977 (7 U.S.C. 2026(b)(1)(A)) is amended by striking

20 ‘‘1995’’ and inserting ‘‘2002’’.

21 (d) OUTREACH DEMONSTRATION PROJECTS.—The

22 first sentence of section 17(j)(1)(A) of the Food Stamp

23 Act of 1977 (7 U.S.C. 2026(j)(1)(A)) is amended by strik24 ing ‘‘1995’’ and inserting ‘‘2002’’.
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1 (e) AUTHORIZATION FOR APPROPRIATIONS.—The

2 first sentence of section 18(a)(1) of the Food Stamp Act

3 of 1977 (7 U.S.C. 2027(a)(1)) is amended by striking

4 ‘‘1995’’ and inserting ‘‘2002’’.

5 (f) REAUTHORIZATION OF PUERTO RICO NUTRITION

6 ASSISTANCE PROGRAM.—The first sentence of section

7 19(a)(1)(A) of the Food Stamp Act of 1977 (7 U.S.C.

8 2028(a)(1)(A)) is amended by striking ‘‘$974,000,000’’

9 and all that follows through ‘‘fiscal year 1995’’ and insert10 ing ‘‘$1,143,000,000 for fiscal year 1996, $1,174,000,000

11 for fiscal year 1997, $1,204,000,000 for fiscal year 1998,

12 $1,236,000,000 for fiscal year 1999, $1,268,000,000 for

13 fiscal year 2000, $1,301,000,000 for fiscal year 2001, and

14 $1,335,000,000 for fiscal year 2002’’.

15 (g) AMERICAN SAMOA.—The Food Stamp Act of

16 1977 (7 U.S.C. 2011 et seq.) is amended by adding at

17 the end the following:

18 ‘‘SEC. 24. TERRITORY OF AMERICAN SAMOA.

19 ‘‘From amounts made available to carry out this Act,

20 the Secretary may pay to the Territory of American

21 Samoa not more than $5,300,000 for each of fiscal years

22 1996 through 2002 to finance 100 percent of the expendi23 tures for the fiscal year for a nutrition assistance program

24 extended under section 601(c) of Public Law 96–597 (48

25 U.S.C. 1469d(c)).’’.
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1 SEC. 402. COMMODITY DISTRIBUTION PROGRAM; COMMOD2 ITY SUPPLEMENTAL FOOD PROGRAM.

3 (a) REAUTHORIZATION.—The first sentence of sec4 tion 4(a) of the Agriculture and Consumer Protection Act

5 of 1973 (Public Law 93–86; 7 U.S.C. 612c note) is

6 amended by striking ‘‘1995’’ and inserting ‘‘2002’’.

7 (b) FUNDING.—Section 5 of the Agriculture and Co8 nsumer Protection Act of 1973 (Public Law 93–86; 7

9 U.S.C. 612c note) is amended—

10 (1) in subsection (a)(2), by striking ‘‘1995’’ and

11 inserting ‘‘2002’’; and

12 (2) in subsection (d)(2), by striking ‘‘1995’’

13 and inserting ‘‘2002’’.

14 (c) CARRIED-OVER FUNDS.—20 percent of any com15 modity supplemental food program funds carried over

16 under section 5 of the Agriculture and Consumer Protec17 tion Act of 1973 (Public Law 93–86; 7 U.S.C. 612c note)

18 shall be available for administrative expenses of the pro19 gram.

20 SEC. 403. EMERGENCY FOOD ASSISTANCE PROGRAM.

21 (a) REAUTHORIZATION.—The first sentence of sec22 tion 204(a)(1) of the Emergency Food Assistance Act of

23 1983 (Public Law 98–8; 7 U.S.C. 612c note) is amended

24 by striking ‘‘1995’’ and inserting ‘‘2002’’.

25 (b) PROGRAM TERMINATION.—Section 212 of the

26 Emergency Food Assistance Act of 1983 (Public Law 98–
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1 8; 7 U.S.C. 612c note) is amended by striking ‘‘1995’’

2 and inserting ‘‘2002’’.

3 (c) REQUIRED PURCHASES OF COMMODITIES.—Sec4 tion 214 of the Emergency Food Assistance Act of 1983

5 (Public Law 98–8; 7 U.S.C. 612c note) is amended—

6 (1) in the first sentence of subsection (a), by

7 striking ‘‘1995’’ and inserting ‘‘2002’’; and

8 (2) in subsection (e), by striking ‘‘1995’’ each

9 place it appears and inserting ‘‘2002’’.

10 SEC. 404. SOUP KITCHENS PROGRAM.

11 Section 110 of the Hunger Prevention Act of 1988

12 (Public Law 100–435; 7 U.S.C. 612c note) is amended—

13 (1) in the first sentence of subsection (a), by

14 striking ‘‘1995’’ and inserting ‘‘2002’’; and

15 (2) in subsection (c)(2)—

16 (A) in the paragraph heading, by striking

17 ‘‘1995’’ and inserting ‘‘2002’’; and

18 (B) by striking ‘‘1995’’ each place it ap19 pears and inserting ‘‘2002’’.

20 SEC. 405. NATIONAL COMMODITY PROCESSING.

21 The first sentence of section 1114(a)(2)(A) of the Ag22 riculture and Food Act of 1981 (7 U.S.C. 1431e(2)(A))

23 is amended by striking ‘‘1995’’ and inserting ‘‘2002’’.
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1 TITLE V—MISCELLANEOUS

2 Subtitle A—General Miscellaneous

3 Provisions

4 SEC. 501. FUND FOR DAIRY PRODUCERS TO PAY FOR NU5 TRIENT MANAGEMENT.

6 Section 8c(5) of the Agricultural Adjustment Act (7

7 U.S.C. 608c(5)), reenacted with amendments by the Agri8 cultural Marketing Agreement Act of 1937, is amended—

9 (1) in paragraph (A), by adding at the end the

10 following: ‘‘The minimum price for milk of the high11 est classification in any order (other than an order

12 amended under paragraph (M)) may not be higher

13 than the minimum price required under this para14 graph.’’; and

15 (2) by adding at the end the following:

16 ‘‘(M) SAFE HARBOR.—

17 ‘‘(i) IN GENERAL.—Providing that

18 each order may be amended such that not

19 more than $.10 per hundredweight of milk

20 of the highest use classification may be

21 added to the minimum applicable price to

22 be set aside in a fund called the ‘Safe Har23 bor Fund Account’ (referred to in this

24 paragraph as the ‘Account’).

25 ‘‘(ii) ADMINISTRATION.—
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1 ‘‘(I) MARKET ADMINISTRATOR.—

2 The Account shall be administered by

3 the Market Administrator.

4 ‘‘(II) USE OF FUNDS.—A deter5 mination regarding the use of the

6 funds in the Account shall be made by

7 the Safe Harbor Committee estab8 lished under clause (iii).

9 ‘‘(iii) SAFE HARBOR COMMITTEE.—

10 The Secretary shall establish a Safe Har11 bor Committee consisting of 7 milk pro12 ducers appointed by the Secretary who

13 supply milk to handlers regulated under a

14 Federal milk marketing order.

15 ‘‘(iv) USE OF FUNDS.—

16 ‘‘(I) APPLICATIONS.—To be eligi17 ble to use amounts in the fund, a milk

18 producer who supplies milk to han19 dlers regulated under a Federal milk

20 marketing order shall submit an ap21 plication to the Safe Harbor Commit22 tee.

23 ‘‘(II) APPROVAL.—The Safe Har24 bor Committee may approve only ap25 plications that fund conservation prac-
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1 tices approved by the Secretary that

2 control the off-migration of nutrients

3 from the farm.

4 ‘‘(III) STATE WATER QUALITY

5 PRIORITIES.—In approving applica6 tions, the Safe Harbor Committee

7 shall take into account, to the extent

8 practicable, the applicable State water

9 quality priorities.’’.

10 SEC. 502. CROP INSURANCE.

11 (a) CATASTROPHIC RISK PROTECTION.—Section

12 508(b) of the Federal Crop Insurance Act (7 U.S.C.

13 1508(b)) is amended—

14 (1) in paragraph (4), by adding at the end the

15 following:

16 ‘‘(C) DELIVERY OF COVERAGE.—

17 ‘‘(i) IN GENERAL.—In full consulta18 tion with approved insurance providers, the

19 Secretary may continue to offer cata20 strophic risk protection in a State (or a

21 portion of a State) through local offices of

22 the Department if the Secretary deter23 mines that there is an insufficient number

24 of approved insurance providers operating

25 in the State or portion to adequately pro-
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1 vide catastrophic risk protection coverage

2 to producers.

3 ‘‘(ii) COVERAGE BY APPROVED INSUR4 ANCE PROVIDERS.—To the extent that cat5 astrophic risk protection coverage by ap6 proved insurance providers is sufficiently

7 available in a State as determined by the

8 Secretary, only approved insurance provid9 ers may provide the coverage in the State.

10 ‘‘(iii) CURRENT POLICIES.—Subject to

11 clause (ii), all catastrophic risk protection

12 policies written by local offices of the De13 partment shall be transferred (including all

14 fees collected for the crop year in which

15 the approved insurance provider will as16 sume the policies) to the approved insur17 ance provider for performance of all sales,

18 service, and loss adjustment functions.’’;

19 and

20 (2) in paragraph (7), by striking subparagraph

21 (A) and inserting the following:

22 ‘‘(A) IN GENERAL.—Effective for the

23 spring-planted 1996 and subsequent crops, to

24 be eligible for any payment or loan under the

25 Agricultural Market Transition Act or the Agri-
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1 cultural Adjustment Act of 1938 (7 U.S.C.

2 1301 et seq.), the conservation reserve pro3 gram, or any benefit described in section 371 of

4 the Consolidated Farm and Rural Development

5 Act (7 U.S.C. 2008f), a person shall—

6 ‘‘(i) obtain at least the catastrophic

7 level of insurance for each crop of eco8 nomic significance in which the person has

9 an interest; or

10 ‘‘(ii) provide a written waiver to the

11 Secretary that waives any eligibility for

12 emergency crop loss assistance in connec13 tion with the crop.’’.

14 (b) COVERAGE OF SEED CROPS.—Section

15 519(a)(2)(B) of the Act (7 U.S.C. 1519(a)(2)(B)) is

16 amended by inserting ‘‘seed crops,’’ after ‘‘turfgrass sod,’’.

17 (c) CROP INSURANCE PILOT PROJECT.—

18 (1) COVERAGE.—The Secretary of Agriculture

19 shall develop and administer a pilot project for crop

20 insurance coverage that indemnifies crop losses due

21 to a natural disaster such as insect infestation or

22 disease.

23 (2) ACTUARIAL SOUNDNESS.—A pilot project

24 under this paragraph shall be actuarially sound, as
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1 determined by the Secretary and administered at no

2 net cost to the United States Treasury.

3 (3) DURATION.—A pilot project under this

4 paragraph shall be of two years’ duration.

5 (d) CROP INSURANCE FOR SPECIALTY CROPS.—Sec6 tion 508(a)(6) of the Federal Crop Insurance Act (7

7 U.S.C. 1508(a)(6)) is amended by adding at the end the

8 following:

9 ‘‘(D) ADDITION OF SPECIALTY CROPS.—

10 Not later than 2 years after the date of enact11 ment of this subparagraph—

12 ‘‘(i) the Corporation shall issue regu13 lations to expand crop insurance coverage

14 under this title to include aquaculture; and

15 ‘‘(ii) The Corporation shall conduct a

16 study and limited pilot program on the fea17 sibility of insuring nursery crops.’’.

18 (e) MARKETING WINDOWS.—Section 508(j) of the

19 Federal Crop Insurance Act (7 U.S.C. 1508(j)) is amend20 ed by adding at the end the following:

21 ‘‘(4) MARKETING WINDOWS.—The Corporation

22 shall consider marketing windows in determining

23 whether it is feasible to require planting during a

24 crop year.’’.
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1 SEC. 503. REVENUE INSURANCE.

2 Section 508(h) of the Federal Crop Insurance Act (7

3 U.S.C. 1508(h)) is amended by adding at the end the fol4 lowing:

5 ‘‘(9) REVENUE INSURANCE PILOT PROGRAM.—

6 ‘‘(A) IN GENERAL.—Not later than De7 cember 31, 1996, the Secretary shall carry out

8 a pilot program in a limited number of coun9 ties, as determined by the Secretary, for crop

10 years 1997, 1998, 1999, and 2000, under

11 which a producer of corn, wheat, or soybeans

12 may elect to receive insurance against loss of

13 revenue, as determined by the Secretary.

14 ‘‘(B) ADMINISTRATION.—Revenue insur15 ance under this paragraph shall—

16 ‘‘(i) be offered through reinsurance

17 arrangements with private insurance com18 panies;

19 ‘‘(ii) offer at least a minimum level of

20 coverage that is an alternative to cata21 strophic crop insurance;

22 ‘‘(iii) be actuarily sound; and

23 ‘‘(iv) require the payment of pre24 miums and administrative fees by an in25 sured producer.’’.
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1 SEC. 504. COLLECTION AND USE OF AGRICULTURAL QUAR2 ANTINE AND INSPECTION FEES.

3 Subsection (a) of section 2509 of the Food, Agri4 culture, Conservation, and Trade Act of 1990 (21 U.S.C.

5 136a) is amended to read as follows:

6 ‘‘(a) QUARANTINE AND INSPECTION FEES.—

7 ‘‘(1) FEES AUTHORIZED.—The Secretary of Ag8 riculture may prescribe and collect fees sufficient—

9 ‘‘(A) to cover the cost of providing agricul10 tural quarantine and inspection services in con11 nection with the arrival at a port in the cus12 toms territory of the United States, or the

13 preclearance or preinspection at a site outside

14 the customs territory of the United States, of

15 an international passenger, commercial vessel,

16 commercial aircraft, commercial truck, or rail17 road car;

18 ‘‘(B) to cover the cost of administering this

19 subsection; and

20 ‘‘(C) through fiscal year 2002, to maintain

21 a reasonable balance in the Agricultural Quar22 antine Inspection User Fee Account established

23 under paragraph (5).

24 ‘‘(2) LIMITATION.—In setting the fees under

25 paragraph (1), the Secretary shall ensure that the

26 amount of the fees are commensurate with the costs
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1 of agricultural quarantine and inspection services

2 with respect to the class of persons or entities pay3 ing the fees. The costs of the services with respect

4 to passengers as a class includes the costs of related

5 inspections of the aircraft or other vehicle.

6 ‘‘(3) STATUS OF FEES.—Fees collected under

7 this subsection by any person on behalf of the Sec8 retary are held in trust for the United States and

9 shall be remitted to the Secretary in such manner

10 and at such times as the Secretary may prescribe.

11 ‘‘(4) LATE PAYMENT PENALTIES.—If a person

12 subject to a fee under this subsection fails to pay the

13 fee when due, the Secretary shall assess a late pay14 ment penalty, and the overdue fees shall accrue in15 terest, as required by section 3717 of title 31,

16 United States Code.

17 ‘‘(5) AGRICULTURAL QUARANTINE INSPECTION

18 USER FEE ACCOUNT.—

19 ‘‘(A) ESTABLISHMENT.—There is estab20 lished in the Treasury of the United States a

21 no-year fund, to be known as the ‘Agricultural

22 Quarantine Inspection User Fee Account’,

23 which shall contain all of the fees collected

24 under this subsection and late payment pen-
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1 alties and interest charges collected under para2 graph (4) through fiscal year 2002.

3 ‘‘(B) USE OF ACCOUNT.—For each of the

4 fiscal years 1996 through 2002, funds in the

5 Agricultural Quarantine Inspection User Fee

6 Account shall be available, in such amounts as

7 are provided in advance in appropriations Acts,

8 to cover the costs associated with the provision

9 of agricultural quarantine and inspection serv10 ices and the administration of this subsection.

11 Amounts made available under this subpara12 graph shall be available until expended.

13 ‘‘(C) EXCESS FEES.—Fees and other

14 amounts collected under this subsection in any

15 of the fiscal years 1996 through 2002 in excess

16 of $100,000,000 shall be available for the pur17 poses specified in subparagraph (B) until ex18 pended, without further appropriation.

19 ‘‘(6) USE OF AMOUNTS COLLECTED AFTER FIS20 CAL YEAR 2002.—After September 30, 2002, the un21 obligated balance in the Agricultural Quarantine In22 spection User Fee Account and fees and other

23 amounts collected under this subsection shall be

24 credited to the Department of Agriculture accounts

25 that incur the costs associated with the provision of
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1 agricultural quarantine and inspection services and

2 the administration of this subsection. The fees and

3 other amounts shall remain available to the Sec4 retary until expended without fiscal year limitation.

5 ‘‘(7) STAFF YEARS.—The number of full-time

6 equivalent positions in the Department of Agri7 culture attributable to the provision of agricultural

8 quarantine and inspection services and the adminis9 tration of this subsection shall not be counted to10 ward the limitation on the total number of full-time

11 equivalent positions in all agencies specified in sec12 tion 5(b) of the Federal Workforce Restructuring

13 Act of 1994 (Public Law 103–226; 5 U.S.C. 3101

14 note) or other limitation on the total number of full15 time equivalent positions.’’.

16 SEC. 505. COMMODITY CREDIT CORPORATION INTEREST

17 RATE.

18 Notwithstanding any other provision of law, the

19 monthly Commodity Credit Corporation interest rate ap20 plicable to loans provided for agricultural commodities by

21 the Corporation shall be 100 basis points greater than the

22 rate determined under the applicable interest rate formula

23 in effect on October 1, 1995.
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1 SEC. 506. EVERGLADES AGRICULTURAL AREA.

2 (a) IN GENERAL.—On July 1, 1996, out of any funds

3 in the Treasury not otherwise appropriated, the Secretary

4 of the Treasury shall provide $200,000,000 to the Sec5 retary of the Interior to carry out this section.

6 (b) ENTITLEMENT.—The Secretary of the Interior—

7 (1) shall accept the funds made available under

8 subsection (a);

9 (2) shall be entitled to receive the funds; and

10 (3) shall use the funds to conduct restoration

11 activities in the Everglades ecosystem, which may in12 clude acquiring private acreage in the Everglades

13 Agricultural Area including approximately 52,000

14 acres that is commonly known as the ‘‘Talisman

15 tract’’.

16 (c) TRANSFERRING FUNDS.—The Secretary of the

17 Interior may transfer funds to the Army Corps of Engi18 neers, the State of Florida, or the South Florida Water

19 Management District to carry out subsection (b)(3).

20 (d) DEADLINE.—Not later than December 31, 1999,

21 the Secretary of the Interior shall utilize the funds for res22 toration activities referred to in subsection (b)(3).

23 SEC. 507. FUND FOR RURAL AMERICA.

24 (a) IN GENERAL.—The Secretary shall create an ac25 count called the Fund for Rural America for the purposes
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1 of providing funds for activities described in subsection

2 (c).

3 (b) COMMODITY CREDIT CORPORATION.—In each of

4 the 1996 through 1998 fiscal years, the Secretary shall

5 transfer into the Fund for Rural America (hereafter re6 ferred to as the ‘‘Account’’)—

7 (1) $50,000,000 for the 1996 fiscal year;

8 (2) $100,000,000 for the 1997 fiscal year; and

9 (3) $150,000,000 for the 1998 fiscal year.

10 (c) PURPOSES.—Except as provided in subsection

11 (d), the Secretary shall provide not more than one-third

12 of the funds from the Account for activities described in

13 paragraph (2).

14 (1) RURAL DEVELOPMENT ACTIVITIES.—The

15 Secretary may use the funds in the Account for the

16 following rural development activities authorized in:

17 (A) The Housing Act of 1949 for—

18 (i) direct loans to low income borrow19 ers pursuant to section 502;

20 (ii) loans for financial assistance for

21 housing for domestic farm laborers pursu22 ant to section 514;

23 (iii) financial assistance for housing of

24 domestic farm labor pursuant to section

25 516;
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1 (iv) grants and contracts for mutual

2 and self help housing pursuant to section

3 523(b)(1)(A); and

4 (v) grants for Rural Housing Preser5 vation pursuant to section 533;

6 (B) The Food Security Act of 1985 for

7 loans to intermediary borrowers under the

8 Rural Development Loan Fund;

9 (C) Consolidated Farm and Rural Develop10 ment Act for—

11 (i) grants for Rural Business Enter12 prises pursuant to section 310B (c) and

13 (j);

14 (ii) direct loans, loan guarantees and

15 grants for water and waste water projects

16 pursuant to section 306; and

17 (iii) down payments assistance to

18 farmers, section 310E;

19 (D) grants for outreach to socially dis20 advantaged farmers and ranchers pursuant to

21 section 2501 of the Food, Agriculture, Con22 servation, and Trade Act of 1990 (7 U.S.C.

23 2279); and

24 (E) grants pursuant to section 204(6) of

25 the Agricultural Marketing Act of 1946.
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1 (2) RESEARCH.—

2 (A) IN GENERAL.—The Secretary may use

3 the funds in the Account for research grants to

4 increase the competitiveness and farm profit5 ability, protect and enhance natural resources,

6 increase economic opportunities in farming and

7 rural communities and expand locally owned

8 value added processing and marketing oper9 ations.

10 (B) ELIGIBLE GRANTEE.—The Secretary

11 may make a grant under this paragraph to—

12 (i) a college or university;

13 (ii) a State agricultural experiment

14 station;

15 (iii) a State Cooperative Extension

16 Service;

17 (iv) a research institution or organiza18 tion;

19 (v) a private organization or person;

20 or

21 (iv) a Federal agency.

22 (C) USE OF GRANT.—

23 (i) IN GENERAL.—A grant made

24 under this paragraph may be used by a
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1 grantee for 1 or more of the following

2 uses—

3 (I) research, ranging from discov4 ery to principles of application;

5 (II) extension and related pri6 vate-sector activities; and

7 (III) education.

8 (ii) LIMITATION.—No grant shall be

9 made for any project, determined by the

10 Secretary, to be eligible for funding under

11 research and commodity promotion pro12 grams administered by the Department.

13 (D) ADMINISTRATION.—

14 (i) PRIORITY.—In administering this

15 paragraph, the Secretary shall—

16 (I) establish priorities for allocat17 ing grants, based on needs and

18 oppportunities of the food and agri19 culture system in the United States

20 related to the goals of the paragraph;

21 (II) seek and accept proposals for

22 grants;

23 (III) determine the relevance and

24 merit of proposals through a system

25 of peer and stakeholder review; and
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1 (IV) award grants on the basis of

2 merit, quality, and relevance to ad3 vancing the national research and ex4 tension purposes.

5 (ii) COMPETITIVE AWARDING.—A

6 grant under this paragraph shall be award7 ed on a competitive basis.

8 (iii) TERMS.—A grant under this

9 paragraph shall have a term that does not

10 exceed 5 years.

11 (iv) MATCHING FUNDS.—As a condi12 tion of receipts under this paragraph, the

13 Secretary shall require the funding of the

14 grant with equal matching funds from a

15 non-Federal source if the grant is—

16 (I) for applied research that is

17 commodity-specific; and

18 (II) not of national scope.

19 (v) ADMINISTRATIVE COSTS.—

20 (I) IN GENERAL.—The Secretary

21 may use not more than 4 percent of

22 the funds made available under this

23 paragraph for administrative costs in24 curred by the Secretary in carrying

25 out this paragraph.
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1 (II) LIMITATION.—Funds made

2 available under this paragraph shall

3 not be used—

4 (aa) for the construction of

5 a new building or the acquisition,

6 expansion, remodeling, or alter7 ation of an existing building (in8 cluding site grading and improve9 ment and architect fees); or

10 (bb) in excess of ten percent

11 of the annual allocation for com12 modity-specific projects not of

13 the national scope.

14 (d) LIMITATIONS.—No funds from the Fund for

15 Rural America may be used for an activity specified in

16 subsection (c) if the current level of appropriations for the

17 activity is less than 90 percent of the 1996 fiscal year ap18 propriations for the activity adjusted for inflation.

19 Subtitle B—Options Pilot Programs

20 and Risk Management Education

21 SEC. 511. SHORT TITLE.

22 This subtitle may be cited as the ‘‘Options Pilot Pro23 grams Act of 1996’’.
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1 SEC. 512. PURPOSE.

2 The purpose of this subtitle is to authorize the Sec3 retary of Agriculture (referred to in this subtitle as the

4 ‘‘Secretary’’) to—

5 (1) conduct research through pilot programs for

6 1 or more program commodities to ascertain wheth7 er futures and options contracts can provide produc8 ers with reasonable protection from the financial

9 risks of fluctuations in price, yield, and income in10 herent in the production and marketing of agricul11 tural commodities; and

12 (2) provide education in the management of the

13 financial risks inherent in the production and mar14 keting of agricultural commodities.

15 SEC. 513. PILOT PROGRAMS.

16 (a) IN GENERAL.—The Secretary is authorized to

17 conduct pilot programs for 1 or more supported commod18 ities through December 31, 2002.

19 (b) DISTRIBUTION OF PILOT PROGRAMS.—The Sec20 retary may operate a pilot program described in sub21 section (a) (referred to in this subtitle as a ‘‘pilot pro22 gram’’) in up to 100 counties for each program commodity

23 with not more than 6 of those counties in any 1 State.

24 A pilot program shall not be implemented in any county

25 for more than 3 of the 1996 through 2002 calendar years.

26 (c) ELIGIBLE PARTICIPANTS.—
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1 (1) IN GENERAL.—In carrying out a pilot pro2 gram, the Secretary may contract with a producer

3 who—

4 (A) is eligible to participate in a price sup5 port program for a supported commodity;

6 (B) desires to participate in a pilot pro7 gram; and

8 (C) is located in an area selected for a

9 pilot program.

10 (2) CONTRACTS.—Each contract under para11 graph (1) shall set forth the terms and conditions

12 for participation in a pilot program.

13 (d) ELIGIBLE MARKETS.—Trades for futures and op14 tions contracts under a pilot program shall be carried out

15 on commodity futures and options markets designated as

16 contract markets under the Commodity Exchange Act (7

17 U.S.C. 1 et seq.)

18 SEC. 514. TERMS AND CONDITIONS.

19 (a) IN GENERAL.—To be eligible to participate in any

20 pilot program for any commodity conducted under this

21 subtitle, a producer shall meet the eligibility requirements

22 established under this subtitle (including regulations is23 sued under this subtitle).

24 (b) RECORDKEEPING.—Producers shall compile,

25 maintain, and submit (or authorize the compilation, main-
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1 tenance, and submission) of such documentation as the

2 regulations governing any pilot program require.

3 SEC. 515. NOTICE.

4 (a) ALTERNATIVE PROGRAMS.—Pilot programs shall

5 be alternatives to other related programs of the Depart6 ment of Agriculture.

7 (b) NOTICE TO PRODUCERS.—The Secretary shall

8 provide notice to each producer participating in a pilot

9 program that—

10 (1) the participation of the producer in a pilot

11 program is voluntary; and

12 (2) neither the United States, the Commodity

13 Credit Corporation, the Federal Crop Insurance Cor14 poration, the Department of Agriculture, nor any

15 other Federal agency is authorized to guarantee that

16 participants in the pilot program will be better or

17 worse off financially as a result of participation in

18 a pilot program than the producer would have been

19 if the producer had not participated in a pilot pro20 gram.

21 SEC. 516. COMMODITY CREDIT CORPORATION.

22 (a) IN GENERAL.—Pilot programs established under

23 this subtitle shall be funded by and carried out through

24 the Commodity Credit Corporation.
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1 (b) LIMITATION.—In conducting the programs, the

2 Secretary shall, to the maximum extent practicable, oper3 ate the pilot programs in a budget neutral manner.

4 SEC. 517. RISK MANAGEMENT EDUCATION.

5 The Secretary shall provide such education in man6 agement of the financial risks inherent in the production

7 and marketing of agricultural commodities as the Sec8 retary considers appropriate.

9 Subtitle C—Commercial Transpor10 tation of Equine for Slaughter

11 SEC. 521. FINDINGS.

12 Congress finds that, to ensure that equine sold for

13 slaughter are provided humane treatment and care, it is

14 essential to regulate the transportation, care, handling,

15 and treatment of equine by any person engaged in the

16 commercial transportation of equine for slaughter.

17 SEC. 522. DEFINITIONS.

18 In this subtitle:

19 (1) COMMERCE.—The term ‘‘commerce’’ means

20 trade, traffic, transportation, or other commerce by

21 a person—

22 (A) between any State, territory, or posses23 sion of the United States, or the District of Co24 lumbia, and any place outside thereof;
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1 (B) between points within the same State,

2 territory, or possession of the United States, or

3 the District of Columbia, but through any place

4 outside thereof; or

5 (C) within any territory or possession of

6 the United States or the District of Columbia.

7 (2) DEPARTMENT.—The term ‘‘Department’’

8 means the United States Department of Agriculture.

9 (3) EQUINE.—The term ‘‘equine’’ means any

10 member of the Equidae family.

11 (4) EQUINE FOR SLAUGHTER.—The term

12 ‘‘equine for slaughter’’ means any equine that is

13 transported, or intended to be transported, by vehi14 cle to a slaughter facility or intermediate handler

15 from a sale, auction, or intermediate handler by a

16 person engaged in the business of transporting

17 equine for slaughter.

18 (5) FOAL.—The term ‘‘foal’’ means an equine

19 that is not more than 6 months of age.

20 (6) INTERMEDIATE HANDLER.—The term ‘‘in21 termediate handler’’ means any person regularly en22 gaged in the business of receiving custody of equine

23 for slaughter in connection with the transport of the

24 equine to a slaughter facility, including a stockyard,

25 feedlot, or assembly point.
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1 (7) PERSON.—The term ‘‘person’’ means any

2 individual, partnership, firm, company, corporation,

3 or association that regularly transports equine for

4 slaughter in commerce, except that the term shall

5 not include an individual or other entity that does

6 not transport equine for slaughter on a regular basis

7 as part of a commercial enterprise.

8 (8) SECRETARY.—The term ‘‘Secretary’’ means

9 the Secretary of Agriculture.

10 (9) VEHICLE.—The term ‘‘vehicle’’ means any

11 machine, truck, tractor, trailer, or semitrailer, or

12 any combination thereof, propelled or drawn by me13 chanical power and used on a highway in the com14 mercial transportation of equine for slaughter.

15 (10) STALLION.—The term ‘‘stallion’’ means

16 any uncastrated male equine that is 1 year of age

17 or older.

18 SEC. 523. STANDARDS FOR HUMANE COMMERCIAL TRANS19 PORTATION OF EQUINE FOR SLAUGHTER.

20 (a) IN GENERAL.—Subject to the availability of ap21 propriations, not later than 1 year after the date of enact22 ment of this subtitle, the Secretary shall issue, by regula23 tion, standards for the humane commercial transportation

24 by vehicle of equine for slaughter.
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1 (b) PROHIBITION.—No person engaged in the regular

2 business of transporting equine by vehicle for slaughter

3 as part of a commercial enterprise shall transport in com4 merce, to a slaughter facility or intermediate handler, an

5 equine for slaughter except in accordance with the stand6 ards and this subtitle.

7 (c) MINIMUM REQUIREMENTS.—The standards shall

8 include minimum requirements for the humane handling,

9 care, treatment, and equipment necessary to ensure the

10 safe and humane transportation of equine for slaughter.

11 The standards shall require, at a minimum, that—

12 (1) no equine for slaughter shall be transported

13 for more than 24 hours without being unloaded from

14 the vehicle and allowed to rest for at least 8 con15 secutive hours and given access to adequate quan16 tities of wholesome food and potable water;

17 (2) a vehicle shall provide adequate headroom

18 for an equine for slaughter with a minimum of at

19 least 6 feet, 6 inches of headroom from the roof and

20 beams or other structural members overhead to floor

21 underfoot, except that a vehicle transporting 6

22 equine or less shall provide a minimum of at least

23 6 feet of headroom from the roof and beams or other

24 structural members overhead to floor underfoot if

25 none of the equine are over 16 hands;
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1 (3) the interior of a vehicle shall—

2 (A) be free of protrusions, sharp edges,

3 and harmful objects;

4 (B) have ramps and floors that are ade5 quately covered with a nonskid nonmetallic sur6 face; and

7 (C) be maintained in a sanitary condition;

8 (4) a vehicle shall—

9 (A) provide adequate ventilation and shel10 ter from extremes of weather and temperature

11 for all equine;

12 (B) be of appropriate size, height, and in13 terior design for the number of equine being

14 carried to prevent overcrowding; and

15 (C) be equipped with doors and ramps of

16 sufficient size and location to provide for safe

17 loading and unloading, including unloading dur18 ing emergencies;

19 (5)(A) equine shall be positioned in the vehicle

20 by size; and

21 (B) stallions shall be segregated from other

22 equine;

23 (6)(A) all equine for slaughter must be fit to

24 travel as determined by an accredited veterinarian,
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1 who shall prepare a certificate of inspection, prior to

2 loading for transport, that—

3 (i) states that the equine were inspected

4 and satisfied the requirements of subparagraph

5 (B);

6 (ii) includes a clear description of each

7 equine; and

8 (iii) is valid for 7 days;

9 (B) no equine shall be transported to slaughter

10 if the equine is found to be—

11 (i) suffering from a broken or dislocated

12 limb;

13 (ii) unable to bear weight on all 4 limbs;

14 (iii) blind in both eyes; or

15 (iv) obviously suffering from severe illness,

16 injury, lameness, or physical debilitation that

17 would make the equine unable to withstand the

18 stress of transportation;

19 (C) no foal may be transported for slaughter;

20 (D) no mare in foal that exhibits signs of im21 pending parturition may be transported for slaugh22 ter; and

23 (E) no equine for slaughter shall be accepted by

24 a slaughter facility unless the equine is—
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1 (i) inspected on arrival by an employee of

2 the slaughter facility or an employee of the De3 partment; and

4 (ii) accompanied by a certificate of inspec5 tion issued by an accredited veterinarian, not

6 more than 7 days before the delivery, stating

7 that the veterinarian inspected the equine on a

8 specified date.

9 SEC. 524. RECORDS.

10 (a) IN GENERAL.—A person engaged in the business

11 of transporting equine for slaughter shall establish and

12 maintain such records, make such reports, and provide

13 such information as the Secretary may, by regulation, re14 quire for the purposes of carrying out, or determining

15 compliance with, this subtitle.

16 (b) MINIMUM REQUIREMENTS.—The records shall in17 clude, at a minimum—

18 (1) the veterinary certificate of inspection;

19 (2) the names and addresses of current owners

20 and consignors, if applicable, of the equine at the

21 time of sale or consignment to slaughter; and

22 (3) the bill of sale or other documentation of

23 sale for each equine.

24 (c) AVAILABILITY.—The records shall—
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1 (1) accompany the equine during transport to

2 slaughter;

3 (2) be retained by any person engaged in the

4 business of transporting equine for slaughter for a

5 reasonable period of time, as determined by the Sec6 retary, except that the veterinary certificate of in7 spection shall be surrendered at the slaughter facil8 ity to an employee or designee of the Department

9 and kept by the Department for a reasonable period

10 of time, as determined by the Secretary; and

11 (3) on request of an officer or employee of the

12 Department, be made available at all reasonable

13 times for inspection and copying by the officer or

14 employee.

15 SEC. 525. AGENTS.

16 (a) IN GENERAL.—For purposes of this subtitle, the

17 act, omission, or failure of an individual acting for or em18 ployed by a person engaged in the business of transporting

19 equine for slaughter, within the scope of the employment

20 or office of the individual, shall be considered the act,

21 omission, or failure of the person engaging in the commer22 cial transportation of equine for slaughter as well as of

23 the individual.

24 (b) ASSISTANCE.—If an equine suffers a substantial

25 injury or illness while being transported for slaughter on
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1 a vehicle, the driver of the vehicle shall seek prompt assist2 ance from a licensed veterinarian.

3 SEC. 526. COOPERATIVE AGREEMENTS.

4 The Secretary is authorized to cooperate with States,

5 political subdivisions of States, State agencies (including

6 State departments of agriculture and State law enforce7 ment agencies), and foreign governments to carry out and

8 enforce this subtitle (including regulations issued under

9 this subtitle).

10 SEC. 527. INVESTIGATIONS AND INSPECTIONS.

11 (a) IN GENERAL.—The Secretary is authorized to

12 conduct such investigations or inspections as the Secretary

13 considers necessary to enforce this subtitle (including any

14 regulation issued under this subtitle).

15 (b) ACCESS.—For the purposes of conducting an in16 vestigation or inspection under subsection (a), the Sec17 retary shall, at all reasonable times, have access to—

18 (1) the place of business of any person engaged

19 in the business of transporting equine for slaughter;

20 (2) the facilities and vehicles used to transport

21 the equine; and

22 (3) records required to be maintained under

23 section 834.

24 (c) ASSISTANCE TO OR DESTRUCTION OF EQUINE.—

25 The Secretary shall issue such regulations as the Sec-
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1 retary considers necessary to permit employees or agents

2 of the Department to—

3 (1) provide assistance to any equine that is cov4 ered by this subtitle (including any regulation issued

5 under this subtitle); or

6 (2) destroy, in a humane manner, any such

7 equine found to be suffering.

8 SEC. 528. INTERFERENCE WITH ENFORCEMENT.

9 (a) IN GENERAL.—Subject to subsection (b), a per10 son who forcibly assaults, resists, opposes, impedes, in11 timidates, or interferes with any person while engaged in

12 or on account of the performance of an official duty of

13 the person under this subtitle shall be fined not more than

14 $5,000 or imprisoned not more than 3 years, or both.

15 (b) WEAPONS.—If the person uses a deadly or dan16 gerous weapon in connection with an action described in

17 subsection (a), the person shall be fined not more than

18 $10,000 or imprisoned not more than 10 years, or both.

19 SEC. 529. JURISDICTION OF COURTS.

20 Except as provided in section 840(a)(5), a district

21 court of the United States in any appropriate judicial dis22 trict under section 1391 of title 28, United States Code,

23 shall have jurisdiction to specifically enforce this subtitle,

24 to prevent and restrain a violation of this subtitle, and

25 to otherwise enforce this subtitle.
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1 SEC. 530. CIVIL AND CRIMINAL PENALTIES.

2 (a) CIVIL PENALTIES.—

3 (1) IN GENERAL.—A person who violates this

4 subtitle (including a regulation or standard issued

5 under this subtitle) shall be assessed a civil penalty

6 by the Secretary of not more than $2,000 for each

7 violation.

8 (2) SEPARATE OFFENSES.—Each equine trans9 ported in violation of this subtitle shall constitute a

10 separate offense. Each violation and each day during

11 which a violation continues shall constitute a sepa12 rate offense.

13 (3) HEARINGS.—No penalty shall be assessed

14 under this subsection unless the person who is al15 leged to have violated this subtitle is given notice

16 and opportunity for a hearing with respect to an al17 leged violation.

18 (4) FINAL ORDER.—An order of the Secretary

19 assessing a penalty under this subsection shall be

20 final and conclusive unless the aggrieved person files

21 an appeal from the order pursuant to paragraph (5).

22 (5) APPEALS.—Not later than 30 days after

23 entry of a final order of the Secretary issued pursu24 ant to this subsection, a person aggrieved by the

25 order may seek review of the order in the appro26 priate United States Court of Appeals. The Court
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1 shall have exclusive jurisdiction to enjoin, set aside,

2 suspend (in whole or in part), or to determine the

3 validity of the order.

4 (6) NONPAYMENT OF PENALTY.—On a failure

5 to pay the penalty assessed by a final order under

6 this section, the Secretary shall request the Attorney

7 General to institute a civil action in a district court

8 of the United States or other United States court

9 for any district in which the person is found, resides,

10 or transacts business, to collect the penalty. The

11 court shall have jurisdiction to hear and decide the

12 action.

13 (b) CRIMINAL PENALTIES.—

14 (1) FIRST OFFENSE.—Subject to paragraph

15 (2), a person who knowingly violates this subtitle (or

16 a regulation or standard issued under this subtitle)

17 shall, on conviction of the violation, be subject to im18 prisonment for not more than 1 year or a fine of not

19 more than $2,000, or both.

20 (2) SUBSEQUENT OFFENSES.—On conviction of

21 a second or subsequent offense described in para22 graph (1), a person shall be subject to imprisonment

23 for not more than 3 years or to a fine of not more

24 than $5,000, or both.
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1 SEC. 531. PAYMENTS FOR TEMPORARY OR MEDICAL AS2 SISTANCE FOR EQUINE DUE TO VIOLATIONS.

3 From sums received as penalties, fines, or forfeitures

4 of property for any violation of this subtitle (including a

5 regulation issued under this subtitle), the Secretary shall

6 pay the reasonable and necessary costs incurred by any

7 person in providing temporary care or medical assistance

8 for any equine that needs the care or assistance due to

9 a violation of this subtitle.

10 SEC. 532. RELATIONSHIP TO STATE LAW.

11 Nothing in this subtitle prevents a State from enact12 ing or enforcing any law (including a regulation) that is

13 not inconsistent with this subtitle or that is more restric14 tive than this subtitle.

15 SEC. 533. AUTHORIZATION OF APPROPRIATIONS.

16 (a) IN GENERAL.—There are authorized to be appro17 priated for each fiscal year such sums as are necessary

18 to carry out this subtitle.

19 (b) LIMITATION.—No provision of this subtitle shall

20 be effective, or be enforced against any person, during a

21 fiscal year unless funds to carry out this subtitle have been

22 appropriated for the fiscal year.
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1 Subtitle D—Miscellaneous

2 SEC. 541. LIVESTOCK DEALER TRUST.

3 Title III of the Packers and Stockyards Act, 1921

4 (7 U.S.C. 201 et seq.), is amended by adding at the end

5 the following:

6 ‘‘SEC. 318. LIVESTOCK DEALER TRUST.

7 ‘‘(a) FINDINGS.—Congress finds that—

8 ‘‘(1) a burden on and obstruction to commerce

9 in livestock is caused by financing arrangements

10 under which dealers and market agencies purchasing

11 livestock on commission encumber, give lenders secu12 rity interests in, or have liens placed on livestock

13 purchased by the dealers and market agencies in

14 cash sales, or on receivables from or proceeds of

15 such sales, when payment is not made for the live16 stock; and

17 ‘‘(2) the carrying out of such arrangements is

18 contrary to the public interest.

19 ‘‘(b) PURPOSE.—The purpose of this section is to

20 remedy the burden on and obstruction to commerce in live21 stock described in paragraph (1) and protect the public

22 interest.

23 ‘‘(c) DEFINITIONS.—In this section:
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1 ‘‘(1) CASH SALE.—The term ‘cash sale’ means

2 a sale in which the seller does not expressly extend

3 credit to the buyer.

4 ‘‘(2) TRUST.—The term ‘trust’ means 1 or

5 more assets of a buyer that (subsequent to a cash

6 sale of livestock) constitutes the corpus of a trust

7 held for the benefit of a seller and consists of—

8 ‘‘(A) account receivables and proceeds

9 earned from the cash sale of livestock by a deal10 er;

11 ‘‘(B) account receivables and proceeds of a

12 marketing agency earned on commission from

13 the cash sale of livestock;

14 ‘‘(C) the inventory of the dealer or market15 ing agency; or

16 ‘‘(D) livestock involved in the cash sale, if

17 the seller has not received payment in full for

18 the livestock and a bona fide third-party pur19 chaser has not purchased the livestock from the

20 dealer or marketing agency.

21 ‘‘(d) HOLDING IN TRUST.—

22 ‘‘(1) IN GENERAL.—The account receivables

23 and proceeds generated in a cash sale made by a

24 dealer or a market agency on commission and the

25 inventory of the dealer or market agency shall be
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1 held by the dealer or market agency in trust for the

2 benefit of the seller of the livestock until the seller

3 receives payment in full for the livestock.

4 ‘‘(2) EXEMPTION.—Paragraph (1) does not

5 apply in the case of a cash sale made by a dealer

6 or market agency if the total amount of cash sales

7 made by the dealer or market agency during the pre8 ceding 12 months does not exceed $250,000.

9 ‘‘(3) DISHONOR OF INSTRUMENT OF PAY10 MENT.—A payment in a sale described in paragraph

11 (1) shall not be considered to be made if the instru12 ment by which payment is made is dishonored.

13 ‘‘(4) LOSS OF BENEFIT OF TRUST.—If an in14 strument by which payment is made in a sale de15 scribed in paragraph (1) is dishonored, the seller

16 shall lose the benefit of the trust under paragraph

17 (1) on the earlier of—

18 ‘‘(A) the date that is 15 business days

19 after date on which the seller receives notice of

20 the dishonor; or

21 ‘‘(B) the date that is 30 days after the

22 final date for making payment under section

23 409,

24 unless the seller gives written notice to the dealer or

25 market agency of the seller’s intention to preserve
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1 the trust and submits a copy of the notice to the

2 Secretary.

3 ‘‘(5) RIGHTS OF THIRD-PARTY PURCHASER.—

4 The trust established under paragraph (1) shall have

5 no effect on the rights of a bona fide third-party

6 purchaser of the livestock, without regard to whether

7 the livestock are delivered to the bona fide pur8 chaser.

9 ‘‘(e) JURISDICTION.—The district courts of the Unit10 ed States shall have jurisdiction in a civil action—

11 ‘‘(1) by the beneficiary of a trust described in

12 subsection (c)(1), to enforce payment of the amount

13 held in trust; and

14 ‘‘(2) by the Secretary, to prevent and restrain

15 dissipation of a trust described in subsection

16 (c)(1).’’.

17 SEC. 542. PLANTING OF ENERGY CROPS.

18 (a) FEED GRAINS.—The first sentence of section

19 105B(c)(1)(F)(i) of the Agricultural Act of 1949 (7

20 U.S.C. 1444f(c)(1)(F)(i)) is amended by inserting ‘‘herba21 ceous perennial grass, short rotation woody coppice species

22 of trees, other energy crops designated by the Secretary

23 with high energy content,’’ after ‘‘mung beans,’’.

24 (b) WHEAT.—The first sentence of section

25 107B(c)(1)(F)(i) of the Agricultural Act of 1949 (7
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1 U.S.C. 1445b–3a(c)(1)(F)(i)) is amended by inserting

2 ‘‘herbaceous perennial grass, short rotation woody coppice

3 species of trees, other energy crops designated by the Sec4 retary with high energy content,’’ after ‘‘mung beans,’’.

5 SEC. 543. REIMBURSABLE AGREEMENTS.

6 Section 737 of Public Law 102–142 (7 U.S.C. 2277)

7 is amended—

8 (1) by striking ‘‘SEC. 737. Funds’’ and insert9 ing the following:

10 ‘‘SEC. 737. SERVICES FOR APHIS PERFORMED OUTSIDE THE

11 UNITED STATES.

12 ‘‘(a) IN GENERAL.—Funds’’; and

13 (2) by adding at the end the following:

14 ‘‘(b) REIMBURSABLE AGREEMENTS.—

15 ‘‘(1) IN GENERAL.—The Secretary of Agri16 culture may enter into reimbursable fee agreements

17 with persons for preclearance at locations outside

18 the United States of plants, plant products, animals,

19 and articles for movement to the United States.

20 ‘‘(2) OVERTIME, NIGHT, AND HOLIDAY WORK.—

21 Notwithstanding any other law, the Secretary of Ag22 riculture may pay an employee of the Department of

23 Agriculture preforming services relating to imports

24 into and exports from the United States for over-
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1 time, night, and holiday work performed by the em2 ployee at a rate of pay established by the Secretary.

3 ‘‘(3) REIMBURSEMENT.—

4 ‘‘(A) IN GENERAL.—The Secretary of Ag5 riculture may require persons for whom

6 preclearance services are performed to reim7 burse the Secretary for any amounts paid by

8 the Secretary for performance of the services.

9 ‘‘(B) CREDITING OF FUNDS.—All funds

10 collected under subparagraph (A) shall be cred11 ited to the account that incurs the costs and

12 shall remain available until expended without

13 fiscal year limitation.

14 ‘‘(C) LATE PAYMENT PENALTY.—

15 ‘‘(i) IN GENERAL.—On failure of a

16 person to reimburse the Secretary of Agri17 culture for the costs of performance of

18 preclearance services—

19 ‘‘(I) the Secretary may assess a

20 late payment penalty; and

21 ‘‘(II) the overdue funds shall ac22 crue interest in accordance with sec23 tion 3717 of title 31, United States

24 Code.
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1 ‘‘(ii) CREDITING OF FUNDS.—Any

2 late payment penalty and any accrued in3 terest collected under this subparagraph

4 shall be credited to the account that incurs

5 the costs and shall remain available until

6 expended without fiscal year limitation.’’.

7 SEC. 544. SWINE HEALTH PROTECTION.

8 (a) TERMINATION OF STATE PRIMARY ENFORCE9 MENT RESPONSIBILITY.—Section 10 of the Swine Health

10 Protection Act (7 U.S.C. 3809) is amended—

11 (1) by redesignating subsection (c) as sub12 section (d); and

13 (2) by inserting after subsection (b) the follow14 ing:

15 ‘‘(c) REQUEST OF STATE OFFICIAL.—

16 ‘‘(1) IN GENERAL.—On request of the Governor

17 or other appropriate official of a State, the Secretary

18 may terminate, effective as soon as the Secretary de19 termines is practicable, the primary enforcement re20 sponsibility of a State under subsection (a). In ter21 minating the primary enforcement responsibility

22 under this subsection, the Secretary shall work with

23 the appropriate State official to determine the level

24 of support to be provided to the Secretary by the

25 State under this Act.
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1 ‘‘(2) REASSUMPTION.—Nothing in this sub2 section shall prevent a State from reassuming pri3 mary enforcement responsibility if the Secretary de4 termines that the State meets the requirements of

5 subsection (a).’’.

6 (b) ADVISORY COMMITTEE.—The Swine Health Pro7 tection Act is amended—

8 (1) by striking section 11 (7 U.S.C. 3810); and

9 (2) by redesignating sections 12, 13, and 14 (7

10 U.S.C. 3811, 3812, and 3813) as sections 11, 12,

11 and 13, respectively.

12 SEC. 545. COOPERATIVE WORK FOR PROTECTION, MANAGE13 MENT, AND IMPROVEMENT OF NATIONAL

14 FOREST SYSTEM.

15 The penultimate paragraph of the matter under the

16 heading ‘‘FOREST SERVICE.’’ of the first section of the

17 Act of June 30, 1914 (38 Stat. 430, chapter 131; 16

18 U.S.C. 498), is amended—

19 (1) by inserting ‘‘, management,’’ after ‘‘the

20 protection’’;

21 (2) by striking ‘‘national forests,’’ and inserting

22 ‘‘National Forest System,’’;

23 (3) by inserting ‘‘management,’’ after ‘‘protec24 tion,’’ both places it appears; and
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1 (4) by adding at the end the following new sen2 tences: ‘‘Payment for work undertaken pursuant to

3 this paragraph may be made from any appropriation

4 of the Forest Service that is available for similar

5 work if a written agreement so provides and reim6 bursement will be provided by a cooperator in the

7 same fiscal year as the expenditure by the Forest

8 Service. A reimbursement received from a cooperator

9 that covers the proportionate share of the cooperator

10 of the cost of the work shall be deposited to the

11 credit of the appropriation of the Forest Service

12 from which the payment was initially made or, if the

13 appropriation is no longer available to the credit of

14 an appropriation of the Forest Service that is avail15 able for similar work. The Secretary of Agriculture

16 shall establish written rules that establish criteria to

17 be used to determine whether the acceptance of con18 tributions of money under this paragraph would ad19 versely affect the ability of an officer or employee of

20 the United States Department of Agriculture to

21 carry out a duty or program of the officer or em22 ployee in a fair and objective manner or would com23 promise, or appear to compromise, the integrity of

24 the program, officer, or employee. The Secretary of

25 Agriculture shall establish written rules that protect
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1 the interests of the Forest Service in cooperative

2 work agreements.’’.

3 SEC. 546. AMENDMENT OF THE VIRUS-SERUM TOXIN ACT

4 OF 1913.

5 The Act of March 4, 1913 (37 Stat. 828, chapter

6 145), is amended in the eighth paragraph under the head7 ing ‘‘BUREAU OF ANIMAL INDUSTRY’’, commonly

8 known as the ‘‘Virus-Serum Toxin Act of 1913’’, by strik9 ing the 10th sentence (21 U.S.C. 158) and inserting ‘‘A

10 person, firm, or corporation that knowingly violates any

11 of the provisions of this paragraph or regulations issued

12 under this paragraph, or knowingly forges, counterfeits,

13 or, without authorization by the Secretary of Agriculture,

14 uses, alters, defaces, or destroys any certificate, permit,

15 license, or other document provided for in this paragraph,

16 may, for each violation, after written notice and oppor17 tunity for a hearing on the record, be assessed a civil pen18 alty by the Secretary of Agriculture of not more than

19 $5,000, or shall, on conviction, be assessed a criminal pen20 alty of not more than $10,000, imprisoned not more than

21 1 year, or both. In the course of an investigation of a sus22 pected violation of this paragraph, the Secretary of Agri23 culture may issue subpoenas requiring the attendance and

24 testimony of witnesses and the production of evidence that

25 relates to the matter under investigation. In determining
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1 the amount of a civil penalty, the Secretary of Agriculture

2 shall take into account the nature, circumstances, extent,

3 and gravity of the violation, the ability of the violator to

4 pay the penalty, the effect that the assessment would have

5 on the ability of the violator to continue to do business,

6 any history of such violations by the violator, the degree

7 of culpability of the violator, and such other matters as

8 justice may require. An order assessing a civil penalty

9 shall be treated as a final order reviewable under chapter

10 158 of title 28, United State’s Code. The Secretary of Ag11 riculture may compromise, modify, or remit a civil penalty

12 with or without conditions. The amount of a civil penalty

13 that is paid (including any amount agreed on in com14 promise) may be deducted from any sums owing by the

15 United States to the violator. The total amount of civil

16 penalties assessed against a violator shall not exceed

17 $300,000 for all such violations adjudicated in a single

18 proceeding. The validity of an order assessing a civil pen19 alty shall not be subject to review in an action to collect

20 the civil penalty. The unpaid amount of a civil penalty not

21 paid in full when due shall accrue interest at the rate of

22 interest applicable to civil judgments of the courts of the

23 United States.’’.
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1 SEC. 547. OVERSEAS TORT CLAIMS.

2 Title VII of Public Law 102–142 (105 Stat. 911) is

3 amended by inserting after section 737 (7 U.S.C. 2277)

4 the following:

5 ‘‘SEC. 737A. OVERSEAS TORT CLAIMS.

6 ‘‘The Secretary of Agriculture may pay a tort claim

7 in the manner authorized in section 2672 of title 28, Unit8 ed States Code, if the claim arises outside the United

9 States in connection with activities of individuals who are

10 performing services for the Secretary. A claim may not

11 be allowed under this section unless the claim is presented

12 in writing to the Secretary within 2 years after the date

13 on which the claim accrues.’’.

14 SEC. 548. GRADUATE SCHOOL OF THE UNITED STATES DE15 PARTMENT OF AGRICULTURE.

16 (a) PURPOSE.—The purpose of this section is to au17 thorize the continued operation of the Graduate School as

18 a nonappropriated fund instrumentality of the Depart19 ment of Agriculture.

20 (b) DEFINITIONS.—In this section:

21 (1) BOARD.—The term ‘‘Board’’ means the

22 General Administration Board of the Graduate

23 School.

24 (2) DEPARTMENT.—The term ‘‘Department’’

25 means the Department of Agriculture.
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1 (3) DIRECTOR.—The term ‘‘Director’’ means

2 the Director of the Graduate School.

3 (4) GRADUATE SCHOOL.—The term ‘‘Graduate

4 School’’ means the Graduate School of the United

5 States Department of Agriculture.

6 (5) SECRETARY.—The term ‘‘Secretary’’ means

7 the Secretary of Agriculture.

8 (c) FUNCTIONS AND AUTHORITY.—

9 (1) IN GENERAL.—The Graduate School shall

10 continue as a nonappropriated fund instrumentality

11 of the Department under the general supervision of

12 the Secretary.

13 (2) ACTIVITIES.—The Graduate School shall

14 develop and administer education, training, and pro15 fessional development activities, including the provi16 sion of educational activities for Federal agencies,

17 Federal employees, nonprofit organizations, other

18 entities, and members of the general public.

19 (3) FEES.—

20 (A) IN GENERAL.—The Graduate School

21 may charge and retain fair and reasonable fees

22 for the activities that it provides based on the

23 cost of the activities to the Graduate School.

24 (B) NOT FEDERAL FUNDS.—Fees under

25 subparagraph (A) shall not be considered to be
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1 Federal funds and shall not required to be de2 posited in the Treasury of the United States.

3 (4) NAME.—The Graduate School shall operate

4 under the name ‘‘United States Department of Agri5 culture Graduate School’’ or such other name as the

6 Graduate School may adopt.

7 (d) GENERAL ADMINISTRATION BOARD.—

8 (1) APPOINTMENT.—The Secretary shall ap9 point a General Administration Board to serve as a

10 governing board subject to regulation by the Sec11 retary.

12 (2) SUPERVISION.—The Graduate School shall

13 be subject to the supervision and direction of the

14 Board.

15 (3) DUTIES.—The Board shall—

16 (A) formulate broad policies in accordance

17 with which the Graduate School shall be admin18 istered;

19 (B) take all steps necessary to see that the

20 highest possible educational standards are

21 maintained;

22 (C) exercise general supervision over the

23 administration of the Graduate School; and

24 (D) establish such bylaws, rules, and pro25 cedures as may be necessary for the fulfillment
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1 of the duties described in subparagraph (A),

2 (B), and (C).

3 (4) DIRECTOR AND OTHER OFFICERS.—The

4 Board shall select the Director and such other offi5 cers as the Board may consider necessary, who shall

6 serve on such terms and perform such duties as the

7 Board may prescribe.

8 (5) BORROWING.—The Board may authorize

9 the Director to borrow money on the credit of the

10 Graduate School.

11 (e) DIRECTOR OF THE GRADUATE SCHOOL.—

12 (1) DUTIES.—The Director shall be responsible,

13 subject to the supervision and direction of the

14 Board, for carrying out the functions of the Grad15 uate School.

16 (2) INVESTMENT OF FUNDS.—The Board may

17 authorize the Director to invest funds held in excess

18 of the current operating requirements of the Grad19 uate School for purposes of maintaining a reason20 able reserve.

21 (f) LIABILITY.—The Director and the members of

22 the Board shall not be held personally liable for any loss

23 or damage that may accrue to the funds of the Graduate

24 School as the result of any act or exercise of discretion
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1 performed in carrying out the duties described in this sec2 tion.

3 (g) EMPLOYEES.—Employees of the Graduate School

4 are employees of a nonappropriated fund instrumentality

5 and shall not be considered to be Federal employees.

6 (h) NOT A FEDERAL AGENCY.—The Graduate School

7 shall not be considered to be a Federal Agency for pur8 poses of—

9 (1) chapter 171 of title 28, United States Code;

10 (2) section 552 or 552a of title 28, United

11 States Code; or

12 (3) the Federal Advisory Committee Act (5

13 U.S.C. App.).

14 (i) ACCEPTANCE OF DONATIONS.—The Graduate

15 School shall not accept a donation from a person that is

16 actively engaged in a procurement activity with the Grad17 uate School or has an interest that may be substantially

18 affected by the performance or nonperformance of an offi19 cial duty of a member of the Board or an employee of

20 the Graduate School.

21 (j) ADMINISTRATIVE PROVISIONS.—In order to carry

22 out the functions of the Graduate School, the Graduate

23 School may—

24 (1) accept, use, hold, dispose, and administer

25 gifts, bequests, or devises of money, securities, and
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1 other real or personal property made for the benefit

2 of, or in connection with, the Graduate School;

3 (2) notwithstanding any other law—

4 (A) acquire real property in the District of

5 Columbia and in other places by lease, pur6 chase, or otherwise;

7 (B) maintain, enlarge, or remodel any such

8 property; and

9 (C) have sole control of any such property;

10 (3) enter into contracts without regard to the

11 Federal Property and Administrative Services Act of

12 1949 (40 U.S.C. 471) or any other law that pre13 scribes procedures for the procurement of property

14 or services by an executive agency;

15 (4) dispose of real and personal property with16 out regard to the requirements of the Federal Prop17 erty and Administrative Services Act of 1949 (40

18 U.S.C. 471); and

19 (5) use the facilities and resources of the De20 partment, on the condition that any costs incurred

21 by the Department that are attributable solely to

22 Graduate School operations and all costs incurred by

23 the Graduate School arising out of such operations

24 shall be borne by the fees paid by or on behalf of
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1 students or by other means and not with Federal

2 funds.

3 SEC. 549. STUDENT INTERN SUBSISTENCE PROGRAM.

4 (a) DEFINITION.—In this section, the term ‘‘student

5 intern’’ means a person who—

6 (1) is employed by the Department of Agri7 culture to assist scientific, professional, administra8 tive, or technical employees of the Department; and

9 (2) is a student in good standing at an accred10 ited college or university pursuing a course of study

11 related to the field in which the person is employed

12 by the Department.

13 (b) PAYMENT OF CERTAIN EXPENSES BY THE SEC14 RETARY.—The Secretary of Agriculture may, out of user

15 fee funds or funds appropriated to any agency, pay for

16 lodging expenses, subsistence expenses, and transportation

17 expenses of a student intern (including expenses of trans18 portation to and from the student intern’s residence at

19 or near the college or university attended by the student

20 intern and the official duty station at which the student

21 intern is employed).

22 SEC. 550. CONVEYANCE OF LAND TO WHITE OAK CEME23 TERY.

24 (a) IN GENERAL.—
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1 (1) RELEASE OF INTEREST.—After execution of

2 the agreement described in subsection (b), the Sec3 retary of Agriculture shall release the condition stat4 ed in the deed on the land described in subsection

5 (c) that the land be used for public purposes, and

6 that if the land is not so used, that the land revert

7 the United States, on the condition that the land be

8 used exclusively for cemetery purposes, and that if

9 the land is not so used, that the land revert the

10 United States.

11 (2) BANKHEAD-JONES ACT.—Section 32(c) of

12 the Bankhead-Jones Farm Tenant Act (7 U.S.C.

13 1011(c)) shall not apply to the release under para14 graph (1).

15 (b) AGREEMENT.—The Secretary of Agriculture shall

16 make the release under in subsection (a) on execution by

17 the Board of Trustees of the University of Arkansas, in

18 consideration of the release, of an agreement, satisfactory

19 to the Secretary of Agriculture, that—

20 (1) the Board of Trustees will not sell, lease,

21 exchange, or otherwise dispose of the land described

22 in subsection (c) except to the White Oak Cemetery

23 Association of Washington County, Arkansas, or a

24 successor organization, for exclusive use for an ex-
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1 pansion of the cemetery maintained by the Associa2 tion; and

3 (2) the proceeds of such a disposition of the

4 land will be deposited and held in an account open

5 to inspection by the Secretary of Agriculture, and

6 used, if withdrawn from the account, for public pur7 poses.

8 (c) LAND DESCRIPTION.—The land described in this

9 subsection is the land conveyed to the Board of Trustees

10 of the University of Arkansas, with certain other land, by

11 deed dated November 18, 1953, comprising approximately

12 2.2 acres located within property of the University of Ar13 kansas in Washington, County, Arkansas, commonly

14 known as the ‘‘Savor property’’ and described as follows:

15 The part of Section 20, Township 17 north,

16 range 31 west, beginning at the north corner of the

17 White Oak Cemetery and the University of Arkansas

18 Agricultural Experiment Station farm at Washing19 ton County road #874, running west approximately

20 330 feet, thence south approximately 135 feet,

21 thence southeast approximately 384 feet, thence

22 north approximately 330 feet to the point of begin23 ning.
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1 SEC. 551. ADVISORY BOARD ON AGRICULTURAL AIR QUAL2 ITY.

3 (a) FINDINGS.—Congress finds that—

4 (1) various studies have identified agriculture

5 as a major atmospheric polluter;

6 (2) Federal research activities are underway to

7 determine the extent of the pollution problem and

8 the extent of the role of agriculture in the problem;

9 and

10 (3) any Federal policy decisions that may re11 sult, and any Federal regulations that may be im12 posed on the agricultural sector, should be based on

13 sound scientific findings;

14 (b) PURPOSE.—The purpose of this section is to es15 tablish an advisory board to assist and provide the Sec16 retary of Agriculture with information, analyses, and pol17 icy recommendations for determining matters of fact and

18 technical merit and addressing scientific questions dealing

19 with particulate matter less than 10 microns that become

20 lodged in human lungs (known as ‘‘PM10’’) and other air21 borne particulate matter or gases that affect agricultural

22 production yields and the economy.

23 (c) ESTABLISHMENT.—

24 (1) IN GENERAL.—The Secretary of Agriculture

25 may establish a board to be known as the ‘‘Advisory

26 Board on Agricultural Air Quality’’ (referred to in
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1 this section as the ‘‘Board’’) to advise the Secretary,

2 through the Chief of the Natural Resources Con3 servation Service, with respect to carrying out this

4 act and obligations agriculture incurred under the

5 Clean Air Act (42 U.S.C. 7401 et seq.) and the Act

6 entitled ‘An Act to amend the Clean Air Act to pro7 vide for attainment and maintenance of health pro8 tective national ambient air quality standards, and

9 for other purposes’, approved November 15, 1990

10 (commonly known as the ‘Clean Air Act Amend11 ments of 1990’) (42 U.S.C. 7401 et seq.).

12 (2) OVERSIGHT COORDINATION.—The Secretary

13 of Agriculture shall provide oversight and coordina14 tion with respect to other Federal departments and

15 agencies to ensure intergovernmental cooperation in

16 research activities and to avoid duplication of Fed17 eral efforts.

18 (d) COMPOSITION.—

19 (1) IN GENERAL.—The Board shall be com20 posed of at least 17 members appointed by the Sec21 retary in consultation with the Administrator of the

22 Environmental Protection Agency.

23 (2) REGIONAL REPRESENTATION.—The mem24 bership of the Board shall be 2 persons from each

25 of the 6 regions of the Natural Resources Conserva-
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1 tion Service, of whom 1 from each region shall be

2 an agricultural producer.

3 (3) ATMOSPHERIC SCIENTIST.—At least 1

4 member of the Board shall be an atmospheric sci5 entist.

6 (e) CHAIRPERSON.—The Chief of the Natural Re7 sources Conservation Service shall—

8 (1) serve as chairman of the Board; and

9 (2) provide technical support to the Board.

10 (f) TERM.—Each member of the Board shall be ap11 pointed for a 3-year term, except that the Secretary of

12 Agriculture shall appoint 4 of the initial members for a

13 term of 1 year and 4 for a term of 2 years.

14 (g) MEETINGS.—The Board shall meet not less than

15 twice annually.

16 (h) COMPENSATION.—Members of the Board shall

17 serve without compensation, but while away from their

18 homes or regular place of business in performance of serv19 ices for the Board, members of the Board shall be allowed

20 travel expenses, including a per diem allowance in lieu of

21 subsistence, in the same manner as persons employed in

22 Government service are allowed travel expenses under sec23 tion 5703 of title 5, United States Code.

24 (i) FUNDING.—The Board shall be funded using ap25 propriations for conservation operations.
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1 SEC. 552. WATER SYSTEMS FOR RURAL AND NATIVE VIL2 LAGES IN ALASKA.

3 The Consolidated Farm and Rural Development Act

4 is amended by inserting after section 306C (7 U.S.C.

5 1926c) the following:

6 ‘‘SEC. 306D. WATER SYSTEMS FOR RURAL AND NATIVE VIL7 LAGES IN ALASKA.

8 ‘‘(a) IN GENERAL.—The Secretary may make grants

9 to the State of Alaska for the benefit of rural or Native

10 villages in Alaska to provide for the development and con11 struction of water and wastewater systems to improve the

12 health and sanitation conditions in those villages.

13 ‘‘(b) MATCHING FUNDS.—To be eligible to receive a

14 grant under subsection (a), the State of Alaska shall pro15 vide equal matching funds from non-Federal sources.

16 ‘‘(c) CONSULTATION WITH THE STATE OF ALASKA.—

17 The Secretary shall consult with the State of Alaska on

18 a method of prioritizing the allocation of grants under

19 subsection (a) according to the needs of, and relative

20 health and sanitation conditions in, each village.

21 ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There

22 is authorized to be appropriated to carry out this section

23 $15,000,000 for each of fiscal years 1996 through 2002.’’.
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1 SEC. 553. ELIGIBILITY FOR GRANTS TO BROADCASTING

2 SYSTEMS.

3 Section 310B(j) of the Consolidated Farm and Rural

4 Development Act (7 U.S.C. 1932(j)) is amended by strik5 ing ‘‘SYSTEMS.—The’’ and inserting the following: ‘‘SYS6 TEMS.—

7 ‘‘(1) DEFINITION OF STATEWIDE.—In this sub8 section, the term ‘statewide’ means having a cov9 erage area of not less than 90 percent of the popu10 lation of a State and 80 percent of the rural land

11 area of the State (as determined by the Secretary).

12 ‘‘(2) GRANTS.—The’’.

13 SEC. 554. WILDLIFE HABITAT INCENTIVES PROGRAM.

14 (a) IN GENERAL.—The Secretary of Agriculture, in

15 consultation with the State Technical Committee, shall es16 tablish a program in the Natural Resources Conservation

17 Service to be known as the Wildlife Habitat Incentive Pro18 gram.

19 (b) COST-SHARE PAYMENTS.—The Program shall

20 make cost-share payments to landowners to develop up21 land wildlife, wetland wildlife, threatened and endangered

22 species, fisheries, and other types of wildlife habitat ap23 proved by the Secretary.

24 (c) FUNDING.—To carry out this section,

25 $10,000,000 shall be made available for each of fiscal

26 years 1996 through 2002 from funds made available to
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1 carry out subchapter B of chapter 1 of subtitle D of title

2 XII of the Food Security Act of 1985 (16 U.S.C. 3831

3 et seq.).

4 SEC. 555. INDIAN RESERVATIONS.

5 (a) INDIAN RESERVATION EXTENSION AGENT PRO6 GRAM.—

7 (1) REAUTHORIZATION.—The program estab8 lished under section 1677 of the Food, Agriculture,

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

10 5930) is reauthorized through fiscal year 2002.

11 (2) REDUCED REGULATORY BURDEN.—On a

12 determination by the Secretary of Agriculture that a

13 program carried out under section 1677 of the Act

14 (7 U.S.C. 5930) has been satisfactorily administered

15 for not less than 2 years, the Secretary shall imple16 ment a reduced re-application process for the contin17 ued operation of the program in order to reduce reg18 ulatory burdens on participating university and trib19 al entities.

20 (b) MEMORANDUM OF AGREEMENT.—

21 (1) IN GENERAL.—Not later than January 6,

22 1997, the Secretary shall develop and implement a

23 formal Memorandum of Agreement with the 29 trib24 ally controlled colleges eligible under Federal law to
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1 receive funds from the Secretary of Agriculture as

2 partial land grant institutions.

3 (2) EQUITABLE PARTICIPATION.—The Memo4 randum shall establish programs to ensure that trib5 ally-controlled colleges and Native American commu6 nities equitably participate in Department of Agri7 culture employment programs, services, and re8 sources.

9 SEC. 556. ICD REIMBURSEMENT FOR OVERHEAD EX10 PENSES.

11 Section 1542(d)(1)(D) of the Food, Agriculture, Con12 servation, and Trade Act of 1990 (Public Law 101–624;7

13 U.S.C. 5622 note) is amended by adding at the end the

14 following: ‘‘Notwithstanding any other provision of law,

15 the assistance shall include assistance for administrative

16 and overhead expenses, to the extent that the expenses

17 were incurred pursuant to reimbursable agreements en18 tered into prior to September 30, 1993, the expenses do

19 not exceed $2,000,000 per year, and the expenses were

20 not incurred for information technology systems.’’.

21 SEC. 557. CLARIFICATION OF EFFECT OF RESOURCE PLAN22 NING ON ALLOCATION OR USE OF WATER.

23 (a) NATIONAL FOREST SYSTEM RESOURCE PLAN24 NING.—Section 6 of the Forest and Rangeland Renewable

25 Resources Planning Act of 1974 (16 U.S.C. 1604) is
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1 amended by adding at the end the following new sub2 section:

3 ‘‘(n) LIMITATION ON AUTHORITY.—Nothing in this

4 section shall be construed to supersede, abrogate or other5 wise impair any right or authority of a State to allocate

6 quantities of water (including boundary waters). Nothing

7 in this section shall be implemented, enforced, or con8 strued to allow any officer or agency of the United States

9 to utilize directly or indirectly the authorities established

10 under this section to impose any requirement not imposed

11 by the State which would supersede, abrogate, or other12 wise impair rights to the use of water resources allocated

13 under State law, interstate water compact, or Supreme

14 Court decree, or held by the United States for use by a

15 State, its political subdivisions, or its citizens. No water

16 rights arise in the United States or any other person

17 under the provisions of this Act.’’.

18 (b) AUTHORIZATION TO GRANT RIGHTS-OF-WAY.—

19 Section 501 of the Federal Land Policy and Management

20 Act of 1976 (43 U.S.C. 1761) is amended as it applies

21 to the Secretary of Agriculture—

22 (1) in subsection (c)(1)—

23 (A) by striking subparagraph (B);

24 (B) in subparagraph (D), by striking

25 ‘‘originally constructed’’;
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1 (C) in subparagraph (G), by striking

2 ‘‘1996’’ and inserting ‘‘1998’’; and

3 (D) by redesignating subparagraphs (C)

4 through (G) as subparagraphs (B) through (F),

5 respectively;

6 (2) in subsection (c)(3)(A), by striking the sec7 ond and third sentences; and

8 (3) by adding at the end the following new sub9 section:

10 ‘‘(e) EFFECT ON VALID EXISTING RIGHTS.—Not11 withstanding any provision of this section, the Secretary

12 of Agriculture may not require, as a condition of, or in

13 connection with, the renewal of a right-of-way under this

14 section, a restriction or limitation on the operation, use,

15 repair, or replacement of an existing water supply facility

16 which is located on or above National Forest lands or the

17 exercise and use of existing water rights, if such condition

18 would reduce the quantity of water which would otherwise

19 be made available for use by the owner of such facility

20 or water rights, or cause an increase in the cost of the

21 water supply provided from such facility.’’.
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1 TITLE VI—CREDIT

2 Subtitle A—Agricultural Credit

3 CHAPTER 1—FARM OWNERSHIP LOANS

4 SEC. 601. LIMITATION ON DIRECT FARM OWNERSHIP

5 LOANS.

6 Section 302 of the Consolidated Farm and Rural De7 velopment Act (7 U.S.C. 1922) is amended by striking

8 subsection (b) and inserting the following:

9 ‘‘(b) DIRECT LOANS.—

10 ‘‘(1) IN GENERAL.—Subject to paragraph (3),

11 the Secretary may only make a direct loan under

12 this subtitle to a farmer or rancher who has oper13 ated a farm or ranch for not less than 3 years and—

14 ‘‘(A) is a qualified beginning farmer or

15 rancher;

16 ‘‘(B) has not received a previous direct

17 farm ownership loan made under this subtitle;

18 or

19 ‘‘(C) has not received a direct farm owner20 ship loan under this subtitle more than 10

21 years before the date the new loan would be

22 made.

23 ‘‘(2) YOUTH LOANS.—The operation of an en24 terprise by a youth under section 311(b) shall not be
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1 considered the operation of a farm or ranch for pur2 poses of paragraph (1).

3 ‘‘(3) TRANSITION RULE.—

4 ‘‘(A) IN GENERAL.—Subject to subpara5 graphs (B) and (C), paragraph (1) shall not

6 apply to a farmer or rancher who has a direct

7 loan outstanding under this subtitle on the date

8 of enactment of this paragraph.

9 ‘‘(B) LESS THAN 5 YEARS.—If, as of the

10 date of enactment of this paragraph, a farmer

11 or rancher has had a direct loan outstanding

12 under this subtitle for less than 5 years, the

13 Secretary shall not make another loan to the

14 farmer or rancher under this subtitle after the

15 date that is 10 years after the date of enact16 ment of this paragraph.

17 ‘‘(C) 5 YEARS OR MORE.—If, as of the date

18 of enactment of this paragraph, a farmer or

19 rancher has had a direct loan outstanding

20 under this subtitle for 5 years or more, the Sec21 retary shall not make another loan to the farm22 er or rancher under this subtitle after the date

23 that is 5 years after the date of enactment of

24 this paragraph.’’.
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1 SEC. 602. PURPOSES OF LOANS.

2 Section 303 of the Consolidated Farm and Rural De3 velopment Act (7 U.S.C. 1923) is amended to read as fol4 lows:

5 ‘‘SEC. 303. PURPOSES OF LOANS.

6 ‘‘(a) ALLOWED PURPOSES.—

7 ‘‘(1) DIRECT LOANS.—A farmer or rancher may

8 use a direct loan made under this subtitle only for—

9 ‘‘(A) acquiring or enlarging a farm or

10 ranch;

11 ‘‘(B) making capital improvements to a

12 farm or ranch;

13 ‘‘(C) paying loan closing costs related to

14 acquiring, enlarging, or improving a farm or

15 ranch; or

16 ‘‘(D) paying for activities to promote soil

17 and water conservation and protection under

18 section 304 on the farm or ranch.

19 ‘‘(2) GUARANTEED LOANS.—A farmer or ranch20 er may use a loan guaranteed under this subtitle

21 only for—

22 ‘‘(A) acquiring or enlarging a farm or

23 ranch;

24 ‘‘(B) making capital improvements to a

25 farm or ranch;
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1 ‘‘(C) paying loan closing costs related to

2 acquiring, enlarging, or improving a farm or

3 ranch;

4 ‘‘(D) paying for activities to promote soil

5 and water conservation and protection under

6 section 304 on the farm or ranch; or

7 ‘‘(E) refinancing indebtedness.

8 ‘‘(b) PREFERENCES.—In making or guaranteeing a

9 loan for farm or ranch purchase, the Secretary shall give

10 a preference to a person who—

11 ‘‘(1) has a dependent family;

12 ‘‘(2) to the extent practicable, is able to make

13 an initial down payment; or

14 ‘‘(3) is an owner of livestock or farm or ranch

15 equipment that is necessary to successfully carry out

16 farming or ranching operations.

17 ‘‘(c) HAZARD INSURANCE REQUIREMENT.—

18 ‘‘(1) IN GENERAL.—The Secretary may not

19 make a loan to a farmer or rancher under this sub20 title unless the farmer or rancher has, or agrees to

21 obtain, hazard insurance on any real property to be

22 acquired or improved with the loan.

23 ‘‘(2) DETERMINATION.—Not later than 180

24 days after the date of enactment of this subsection,
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1 the Secretary shall determine the appropriate level

2 of insurance to be required under paragraph (1).

3 ‘‘(3) TRANSITIONAL PROVISION.—Paragraph

4 (1) shall not apply until the Secretary makes the de5 termination required under paragraph (2).’’.

6 SEC. 603. SOIL AND WATER CONSERVATION AND PROTEC7 TION.

8 Section 304 of the Consolidated Farm and Rural De9 velopment Act (7 U.S.C. 1924) is amended—

10 (1) by striking subsections (b) and (c);

11 (2) by striking ‘‘SEC. 304. (a)(1) Loans’’ and

12 inserting the following:

13 ‘‘SEC. 304. SOIL AND WATER CONSERVATION AND PROTEC14 TION.

15 ‘‘(a) IN GENERAL.—Loans’’;

16 (3) by striking ‘‘(2) In making or insuring’’ and

17 inserting the following:

18 ‘‘(b) PRIORITY.—In making or guaranteeing’’;

19 (4) by striking ‘‘(3) The Secretary’’ and insert20 ing the following:

21 ‘‘(c) LOAN MAXIMUM.—The Secretary’’;

22 (5) by redesignating subparagraphs (A) through

23 (F) of subsection (a) (as amended by paragraph (2))

24 as paragraphs (1) through (6), respectively; and
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1 (6) by redesignating subparagraphs (A) and

2 (B) of subsection (c) (as amended by paragraph (4))

3 as paragraphs (1) and (2), respectively.

4 SEC. 604. INTEREST RATE REQUIREMENTS.

5 Section 307(a)(3) of the Consolidated Farm and

6 Rural Development Act (7 U.S.C. 1927(a)(3)) is amend7 ed—

8 (1) in subparagraph (B), by inserting ‘‘subpara9 graph (D) and in’’ after ‘‘Except as provided in’’;

10 and

11 (2) by adding at the end the following:

12 ‘‘(D) JOINT FINANCING ARRANGEMENT.—If a

13 direct farm ownership loan is made under this sub14 title as part of a joint financing arrangement and

15 the amount of the direct farm ownership loan does

16 not exceed 50 percent of the total principal amount

17 financed under the arrangement, the interest rate on

18 the direct farm ownership loan shall be 4 percent

19 annually.’’.

20 SEC. 605. INSURANCE OF LOANS.

21 Section 308 of the Consolidated Farm and Rural De22 velopment Act (7 U.S.C. 1928) is amended to read as fol23 lows:
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1 ‘‘SEC. 308. FULL FAITH AND CREDIT.

2 ‘‘(a) IN GENERAL.—A contract of insurance or guar3 antee executed by the Secretary under this title shall be

4 an obligation supported by the full faith and credit of the

5 United States.

6 ‘‘(b) CONTESTABILITY.—A contract of insurance or

7 guarantee executed by the Secretary under this title shall

8 be incontestable except for fraud or misrepresentation that

9 the lender or any holder—

10 ‘‘(1) has actual knowledge of at the time the

11 contract or guarantee is executed; or

12 ‘‘(2) participates in or condones.’’.

13 SEC. 606. LOANS GUARANTEED.

14 Section 309(h) of the Consolidated Farm and Rural

15 Development Act (7 U.S.C. 1929(h)) is amended by add16 ing at the end the following:

17 ‘‘(4) MAXIMUM GUARANTEE OF 90 PERCENT.—

18 Except as provided in paragraph (5), a loan guaran19 tee under this title shall be for not more than 90

20 percent of the principal and interest due on the loan.

21 ‘‘(5) REFINANCED LOANS GUARANTEED AT 95

22 PERCENT.—The Secretary shall guarantee 95 per23 cent of—

24 ‘‘(A) in the case of a loan that solely refi25 nances a direct loan made under this title, the
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1 principal and interest due on the loan on the

2 date of the refinancing; or

3 ‘‘(B) in the case of a loan that is used for

4 multiple purposes, the portion of the loan that

5 refinances the principal and interest due on a

6 direct loan made under this title that is out7 standing on the date the loan is guaranteed.

8 ‘‘(6) BEGINNING FARMER LOANS GUARANTEED

9 UP TO 95 PERCENT.—The Secretary may guarantee

10 up to 95 percent of—

11 ‘‘(A) a farm ownership loan for acquiring

12 a farm or ranch to a borrower who is partici13 pating in the down payment loan program

14 under section 310E; or

15 ‘‘(B) an operating loan to a borrower who

16 is participating in the down payment loan pro17 gram under section 310E that is made during

18 the period that the borrower has a direct loan

19 for acquiring a farm or ranch.’’.

20 CHAPTER 2—OPERATING LOANS

21 SEC. 611. LIMITATION ON DIRECT OPERATING LOANS.

22 (a) IN GENERAL.—Section 311 of the Consolidated

23 Farm and Rural Development Act (7 U.S.C. 1941) is

24 amended by striking subsection (c) and inserting the fol25 lowing:
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1 ‘‘(c) DIRECT LOANS.—

2 ‘‘(1) IN GENERAL.—Subject to paragraph (3),

3 the Secretary may only make a direct loan under

4 this subtitle to a farmer or rancher who—

5 ‘‘(A) is a qualified beginning farmer or

6 rancher who has not operated a farm or ranch,

7 or who has operated a farm or ranch for not

8 more than 5 years;

9 ‘‘(B) has not had a previous direct operat10 ing loan under this subtitle; or

11 ‘‘(C) has not had a previous direct operat12 ing loan under this subtitle for more than 7

13 years.

14 ‘‘(2) YOUTH LOANS.—In this subsection, the

15 term ‘direct operating loan’ shall not include a loan

16 made to a youth under subsection (b).

17 ‘‘(3) TRANSITION RULE.—If, as of the date of

18 enactment of this paragraph, a farmer or rancher

19 has received a direct operating loan under this sub20 title during each of 4 or more previous years, the

21 borrower shall be eligible to receive a direct operat22 ing loan under this subtitle during 3 additional years

23 after the date of enactment of this paragraph.’’.

24 (b) YOUTH ENTERPRISES NOT FARMING OR RANCH25 ING.—Section 311(b) of the Consolidated Farm and Rural
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1 Development Act (7 U.S.C. 1941(b)) is amended by add2 ing at the end the following:

3 ‘‘(4) YOUTH ENTERPRISES NOT FARMING OR

4 RANCHING.—The operation of an enterprise by a

5 youth under this subsection shall not be considered

6 the operation of a farm or ranch under this title.’’.

7 SEC. 612. PURPOSES OF OPERATING LOANS.

8 Section 312 of the Consolidated Farm and Rural De9 velopment Act (7 U.S.C. 1942) is amended to read as fol10 lows:

11 ‘‘SEC. 312. PURPOSES OF LOANS.

12 ‘‘(a) IN GENERAL.—A direct loan may be made

13 under this subtitle only for—

14 ‘‘(1) paying the costs incident to reorganizing a

15 farming or ranching system for more profitable op16 eration;

17 ‘‘(2) purchasing livestock, poultry, or farm or

18 ranch equipment;

19 ‘‘(3) purchasing feed, seed, fertilizer, insecti20 cide, or farm or ranch supplies, or to meet other es21 sential farm or ranch operating expenses, including

22 cash rent;

23 ‘‘(4) financing land or water development, use,

24 or conservation;

25 ‘‘(5) paying loan closing costs;
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1 ‘‘(6) assisting a farmer or rancher in effecting

2 an addition to, or alteration of, the equipment, facili3 ties, or methods of operation of a farm or ranch to

4 comply with a standard promulgated under section

5 6 of the Occupational Safety and Health Act of

6 1970 (29 U.S.C. 655) or a standard adopted by a

7 State under a plan approved under section 18 of the

8 Act (29 U.S.C. 667), if the Secretary determines

9 that without assistance under this paragraph the

10 farmer or rancher is likely to suffer substantial eco11 nomic injury due to compliance with the standard;

12 ‘‘(7) training a limited-resource borrower receiv13 ing a loan under section 310D in maintaining

14 records of farming and ranching operations;

15 ‘‘(8) training a borrower under section 359;

16 ‘‘(9) refinancing the indebtedness of a borrower

17 if the borrower—

18 ‘‘(A) has refinanced a loan under this sub19 title not more than 4 times previously; and

20 ‘‘(B)(i) is a direct loan borrower under this

21 title at the time of the refinancing and has suf22 fered a qualifying loss because of a natural dis23 aster declared by the Secretary under this title

24 or a major disaster or emergency designated by

25 the President under the Robert T. Stafford Dis-
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1 aster Relief and Emergency Assistance Act (42

2 U.S.C. 5121 et seq.); or

3 ‘‘(ii) is refinancing a debt obtained from a

4 creditor other than the Secretary; or

5 ‘‘(10) providing other farm, ranch, or home

6 needs, including family subsistence.

7 ‘‘(b) GUARANTEED LOANS.—A loan may be guaran8 teed under this subtitle only for—

9 ‘‘(1) paying the costs incident to reorganizing a

10 farming or ranching system for more profitable op11 eration;

12 ‘‘(2) purchasing livestock, poultry, or farm or

13 ranch equipment;

14 ‘‘(3) purchasing feed, seed, fertilizer, insecti15 cide, or farm or ranch supplies, or to meet other es16 sential farm or ranch operating expenses, including

17 cash rent;

18 ‘‘(4) financing land or water development, use,

19 or conservation;

20 ‘‘(5) refinancing indebtedness;

21 ‘‘(6) paying loan closing costs;

22 ‘‘(7) assisting a farmer or rancher in effecting

23 an addition to, or alteration of, the equipment, facili24 ties, or methods of operation of a farm or ranch to

25 comply with a standard promulgated under section
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1 6 of the Occupational Safety and Health Act of

2 1970 (29 U.S.C. 655) or a standard adopted by a

3 State under a plan approved under section 18 of the

4 Act (29 U.S.C. 667), if the Secretary determines

5 that without assistance under this paragraph the

6 farmer or rancher is likely to suffer substantial eco7 nomic injury due to compliance with the standard;

8 ‘‘(8) training a borrower under section 359; or

9 ‘‘(9) providing other farm, ranch, or home

10 needs, including family subsistence.

11 ‘‘(c) HAZARD INSURANCE REQUIREMENT.—

12 ‘‘(1) IN GENERAL.—The Secretary may not

13 make a loan to a farmer or rancher under this sub14 title unless the farmer or rancher has, or agrees to

15 obtain, hazard insurance on any property to be ac16 quired with the loan.

17 ‘‘(2) DETERMINATION.—Not later than 180

18 days after the date of enactment of this paragraph,

19 the Secretary shall determine the appropriate level

20 of insurance to be required under paragraph (1).

21 ‘‘(3) TRANSITIONAL PROVISION.—Paragraph

22 (1) shall not apply until the Secretary makes the de23 termination required under paragraph (2).

24 ‘‘(d) PRIVATE RESERVE.—
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1 ‘‘(1) IN GENERAL.—Notwithstanding any other

2 provision of this title, the Secretary may reserve the

3 lesser of 10 percent or $5,000 of the amount of a

4 direct loan made under this subtitle, to be placed in

5 a nonsupervised bank account that may be used at

6 the discretion of the borrower for any necessary

7 family living need or purpose that is consistent with

8 any farming or ranching plan agreed to by the Sec9 retary and the borrower prior to the date of the

10 loan.

11 ‘‘(2) ADJUSTMENT OF RESERVE.—If a borrower

12 exhausts the amount of funds reserved under para13 graph (1), the Secretary may—

14 ‘‘(A) review and adjust the farm or ranch

15 plan referred to in paragraph (1) with the bor16 rower and reschedule the loan;

17 ‘‘(B) extend additional credit;

18 ‘‘(C) use income proceeds to pay necessary

19 farm, ranch, home, or other expenses; or

20 ‘‘(D) provide additional available loan serv21 icing.’’.

22 SEC. 613. PARTICIPATION IN LOANS.

23 Section 315 of the Consolidated Farm and Rural De24 velopment Act (7 U.S.C. 1945) is repealed.
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1 SEC. 614. LINE-OF-CREDIT LOANS.

2 Section 316 of the Consolidated Farm and Rural De3 velopment Act (7 U.S.C. 1946) is amended by adding at

4 the end the following:

5 ‘‘(c) LINE-OF-CREDIT LOANS.—

6 ‘‘(1) IN GENERAL.—A loan made or guaranteed

7 by the Secretary under this subtitle may be in the

8 form of a line-of-credit loan.

9 ‘‘(2) TERM.—A line-of-credit loan under para10 graph (1) shall terminate not later than 5 years

11 after the date that the loan is made or guaranteed.

12 ‘‘(3) ELIGIBILITY.—For purposes of determin13 ing eligibility for a farm operating loan, each year

14 in which a farmer or rancher takes an advance or

15 draws on a line-of-credit loan the farmer or rancher

16 shall be considered to have received an operating

17 loan for 1 year.’’.

18 SEC. 615. INSURANCE OF OPERATING LOANS.

19 Section 317 of the Consolidated Farm and Rural De20 velopment Act (7 U.S.C. 1947) is repealed.

21 SEC. 616. SPECIAL ASSISTANCE FOR BEGINNING FARMERS

22 AND RANCHERS.

23 (a) IN GENERAL.—Section 318 of the Consolidated

24 Farm and Rural Development Act (7 U.S.C. 1948) is re25 pealed.
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1 (b) CONFORMING AMENDMENT.—Section 310F of

2 the Consolidated Farm and Rural Development Act (7

3 U.S.C. 1936) is repealed.

4 SEC. 617. LIMITATION ON PERIOD FOR WHICH BORROWERS

5 ARE ELIGIBLE FOR GUARANTEED ASSIST6 ANCE.

7 Section 319 of the Consolidated Farm and Rural De8 velopment Act (7 U.S.C. 1949) is amended by striking

9 subsection (b) and inserting the following:

10 ‘‘(b) LIMITATION ON PERIOD BORROWERS ARE ELI11 GIBLE FOR GUARANTEED ASSISTANCE.—

12 ‘‘(1) GENERAL RULE.—Subject to paragraph

13 (2), the Secretary shall not guarantee a loan under

14 this subtitle for a borrower for any year after the

15 15th year that a loan is made to, or a guarantee is

16 provided with respect to, the borrower under this

17 subtitle.

18 ‘‘(2) TRANSITION RULE.—If, as of October 28,

19 1992, a farmer or rancher has received a direct or

20 guaranteed operating loan under this subtitle during

21 each of 10 or more previous years, the borrower

22 shall be eligible to receive a guaranteed operating

23 loan under this subtitle during 5 additional years

24 after October 28, 1992.’’.
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1 CHAPTER 3—EMERGENCY LOANS

2 SEC. 621. HAZARD INSURANCE REQUIREMENT.

3 Section 321 of the Consolidated Farm and Rural De4 velopment Act (7 U.S.C. 1961) is amended by striking

5 subsection (b) and inserting the following:

6 ‘‘(b) HAZARD INSURANCE REQUIREMENT.—

7 ‘‘(1) IN GENERAL.—The Secretary may not

8 make a loan to a farmer or rancher under this sub9 title to cover a property loss unless the farmer or

10 rancher had hazard insurance that insured the prop11 erty at the time of the loss.

12 ‘‘(2) DETERMINATION.—Not later than 180

13 days after the date of enactment of this paragraph,

14 the Secretary shall determine the appropriate level

15 of insurance to be required under paragraph (1).

16 ‘‘(3) TRANSITIONAL PROVISION.—Paragraph

17 (1) shall not apply until the Secretary makes the de18 termination required under paragraph (2).’’.

19 SEC. 622. MAXIMUM EMERGENCY LOAN INDEBTEDNESS.

20 Section 324 of the Consolidated Farm and Rural De21 velopment Act (7 U.S.C. 1964) is amended by striking

22 ‘‘SEC. 324. (a) No loan’’ and all that follows through the

23 end of subsection (a) and inserting the following:
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1 ‘‘SEC. 324. TERMS OF LOANS.

2 ‘‘(a) MAXIMUM AMOUNT OF LOAN.—The Secretary

3 may not make a loan under this subtitle that—

4 ‘‘(1) exceeds the actual loss caused by a disas5 ter; or

6 ‘‘(2) would cause the total indebtedness of the

7 borrower under this subtitle to exceed $500,000.’’.

8 SEC. 623. INSURANCE OF EMERGENCY LOANS.

9 Section 328 of the Consolidated Farm and Rural De10 velopment Act (7 U.S.C. 1968) is repealed.

11 CHAPTER 4—ADMINISTRATIVE

12 PROVISIONS

13 SEC. 631. USE OF COLLECTION AGENCIES.

14 Section 331 of the Consolidated Farm and Rural De15 velopment Act (7 U.S.C. 1981) is amended by adding at

16 the end the following:

17 ‘‘(d) PRIVATE COLLECTION AGENCY.—The Secretary

18 may use a private collection agency to collect a claim or

19 obligation described in subsection (b)(5).’’.

20 SEC. 632. NOTICE OF LOAN SERVICE PROGRAMS.

21 Section 331D(a) of the Consolidated Farm and Rural

22 Development Act (7 U.S.C. 1981d(a)) is amended by

23 striking ‘‘180 days delinquent in’’ and inserting ‘‘90 days

24 past due on’’.
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1 SEC. 633. SALE OF PROPERTY.

2 Section 335 of the Consolidated Farm and Rural De3 velopment Act (7 U.S.C. 1985) is amended—

4 (1) in subsection (b), by striking ‘‘subsection

5 (e)’’ and inserting ‘‘subsections (c) and (e)’’;

6 (2) by striking subsection (c) and inserting the

7 following:

8 ‘‘(c) SALE OF PROPERTY.—

9 ‘‘(1) IN GENERAL.—Subject to this subsection

10 and subsection (e)(1)(A), the Secretary shall offer to

11 sell real property that is acquired by the Secretary

12 under this title in the following order and method of

13 sale:

14 ‘‘(A) ADVERTISEMENT.—Not later than 15

15 days after acquiring real property, the Sec16 retary shall publicly advertise the property for

17 sale.

18 ‘‘(B) BEGINNING FARMER OR RANCHER.—

19 ‘‘(i) IN GENERAL.—Not later than 75

20 days after acquiring real property, the Sec21 retary shall attempt to sell the property to

22 a qualified beginning farmer or rancher at

23 current market value based on a current

24 appraisal.

25 ‘‘(ii) RANDOM SELECTION.—If more

26 than 1 qualified beginning farmer or
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1 rancher offers to purchase the property,

2 the Secretary shall select between the

3 qualified applicants on a random basis.

4 ‘‘(iii) APPEAL OF RANDOM SELEC5 TION.—A random selection or denial by

6 the Secretary of a beginning farmer or

7 rancher for farm inventory property under

8 this subparagraph shall be final and not

9 administratively appealable.

10 ‘‘(C) PUBLIC SALE.—If no acceptable offer

11 is received from a qualified beginning farmer or

12 rancher under subparagraph (B) within 75 days

13 of acquiring the real property, the Secretary

14 shall, within 30 days, sell the property after

15 public notice at a public sale, and, if no accept16 able bid is received, by negotiated sale, at the

17 best price obtainable.

18 ‘‘(2) TRANSITIONAL RULES.—

19 ‘‘(A) PREVIOUS LEASE.—In the case of

20 real property acquired prior to the date of en21 actment of this subparagraph that the Sec22 retary leased prior to the date of enactment of

23 this subparagraph, the Secretary shall offer to

24 sell the property according to paragraph (1) not

25 later than 60 days after the lease expires.
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1 ‘‘(B) PREVIOUSLY IN INVENTORY.—In the

2 case of real property acquired prior to the date

3 of enactment of this subparagraph that the Sec4 retary has not leased, the Secretary shall offer

5 to sell the property according to paragraph (1)

6 not later than 60 days after the date of enact7 ment of this subparagraph.

8 ‘‘(3) INTEREST.—

9 ‘‘(A) IN GENERAL.—Subject to subpara10 graph (B), any conveyance under this sub11 section shall include all of the interest of the

12 United States, including mineral rights.

13 ‘‘(B) CONSERVATION.—The Secretary may

14 for conservation purposes grant or sell an ease15 ment, restriction, development right, or similar

16 legal right to a State, a political subdivision of

17 a State, or a private nonprofit organization sep18 arately from the underlying fee or other rights

19 owned by the Secretary.

20 ‘‘(4) OTHER LAW.—This title shall not be sub21 ject to the Federal Property and Administrative

22 Services Act of 1949 (40 U.S.C. 471 et seq.).

23 ‘‘(5) LEASE OF PROPERTY.—
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1 ‘‘(A) IN GENERAL.—Subject to subpara2 graph (B), the Secretary may not lease any real

3 property acquired under this title.

4 ‘‘(B) EXCEPTION.—

5 ‘‘(i) BEGINNING FARMER OR RANCH6 ER.—Notwithstanding paragraph (1), the

7 Secretary may lease or contract to sell a

8 farm or ranch acquired by the Secretary

9 under this title to a beginning farmer or

10 rancher if the beginning farmer or rancher

11 qualifies for a credit sale or direct farm

12 ownership loan but credit sale authority for

13 loans or direct farm ownership funds, re14 spectively, are not available.

15 ‘‘(ii) TERM.—A lease or contract to

16 sell to a beginning farmer or rancher

17 under clause (i) shall be until the earlier

18 of—

19 ‘‘(I) the date that is 18 months

20 after the date of the lease or sale; or

21 ‘‘(II) the date that direct farm

22 ownership loan funds or credit sale

23 authority for loans become available

24 to the beginning farmer or rancher.
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1 ‘‘(iii) INCOME-PRODUCING CAPABIL2 ITY.—In determining the rental rate on

3 real property leased under this subpara4 graph, the Secretary shall consider the in5 come-producing capability of the property

6 during the term that the property is

7 leased.

8 ‘‘(6) DETERMINATION BY SECRETARY.—

9 ‘‘(A) EXPEDITED REVIEW.—On the re10 quest of an applicant, the Secretary shall pro11 vide within 30 days of denial of the applicant’s

12 application for an expedited review by the ap13 propriate State Director of whether the appli14 cant is a beginning farmer or rancher for the

15 purpose of acquiring farm inventory property.

16 ‘‘(B) APPEAL.—The results of a review

17 conducted by a State Director under subpara18 graph (A) shall be final and not administra19 tively appealable.

20 ‘‘(C) EFFECTS OF REVIEW.—

21 ‘‘(i) IN GENERAL.—The Secretary

22 shall maintain statistical data on the num23 ber and results of reviews conducted under

24 subparagraph (A) and whether the reviews

25 adversely impact on—
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1 ‘‘(I) selling farm inventory prop2 erty to beginning farmers and ranch3 ers; and

4 ‘‘(II) disposing of real property

5 in inventory.

6 ‘‘(ii) NOTIFICATION.—The Secretary

7 shall notify the Committee on Agriculture

8 of the House of Representatives and the

9 Committee on Agriculture, Nutrition, and

10 Forestry of the Senate if the Secretary de11 termines that reviews under subparagraph

12 (A) are adversely impacting the selling of

13 farm inventory property to beginning farm14 ers or ranchers or on disposing of real

15 property in inventory.’’; and

16 (3) in subsection (e)—

17 (A) in paragraph (1)—

18 (i) by striking subparagraphs (A)

19 through (C);

20 (ii) by redesignating subparagraphs

21 (D) through (G) as subparagraphs (A)

22 through (D), respectively;

23 (iii) in subparagraph (A) (as redesig24 nated by clause (ii))—

25 (I) in clause (i)—
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1 (aa) in the matter preceding

2 subclause (I), by striking ‘‘(G)’’

3 and inserting ‘‘(D)’’;

4 (bb) by striking subclause

5 (I) and inserting the following:

6 ‘‘(I) the Secretary acquires property under this

7 title that is located within an Indian reservation;

8 and’’;

9 (cc) in subclause (II), by

10 striking ‘‘, and’’ at the end and

11 inserting a semicolon; and

12 (dd) by striking subclause

13 (III); and

14 (II) in clause (iii), by striking

15 ‘‘The Secretary shall’’ and all that fol16 lows through ‘‘of subparagraph (A),’’

17 and inserting ‘‘Not later than 90 days

18 after acquiring the property, the Sec19 retary shall’’; and

20 (iv) in subparagraph (D) (as redesig21 nated by clause (ii))—

22 (I) in clause (i), by striking

23 ‘‘(D)’’ in the matter following

24 subclause (IV) and inserting ‘‘(A)’’;
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1 (II) in clause (iii)(I), by striking

2 ‘‘subparagraphs (C)(i), (C)(ii), and

3 (D)’’ and inserting ‘‘subparagraph

4 (A)’’; and

5 (III) by striking clause (v) and

6 inserting the following:

7 ‘‘(v) FORECLOSURE PROCEDURES.—

8 ‘‘(I) NOTICE TO BORROWER.—If

9 a borrower-owner does not voluntarily

10 convey to the Secretary real property

11 described in clause (i), not less than

12 30 days before a foreclosure sale of

13 the property the Secretary shall pro14 vide the Indian borrower-owner with

15 the option of—

16 ‘‘(aa) requiring the Sec17 retary to assign the loan and se18 curity instruments to the Sec19 retary of the Interior, provided

20 the Secretary of the Interior

21 agrees to the assignment, releas22 ing the Secretary of Agriculture

23 from all further responsibility for

24 collection of any amounts with
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1 regard to the loan secured by the

2 real property; or

3 ‘‘(bb) requiring the Sec4 retary to assign the loan and se5 curity instruments to the tribe

6 having jurisdiction over the res7 ervation in which the real prop8 erty is located, provided the tribe

9 agrees to the assignment.

10 ‘‘(II) NOTICE TO TRIBE.—If a

11 borrower-owner does not voluntarily

12 convey to the Secretary real property

13 described in clause (i), not less than

14 30 days before a foreclosure sale of

15 the property the Secretary shall pro16 vide written notice to the Indian tribe

17 that has jurisdiction over the reserva18 tion in which the real property is lo19 cated of—

20 ‘‘(aa) the sale;

21 ‘‘(bb) the fair market value

22 of the property; and

23 ‘‘(cc) the requirements of

24 this subparagraph.
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1 ‘‘(III) ASSUMED LOANS.—If an

2 Indian tribe assumes a loan under

3 subclause (I)—

4 ‘‘(aa) the Secretary shall not

5 foreclose the loan because of any

6 default that occurred prior to the

7 date of the assumption;

8 ‘‘(bb) the loan shall be for

9 the lesser of the outstanding

10 principal and interest of the loan

11 or the fair market value of the

12 property; and

13 ‘‘(cc) the loan shall be treat14 ed as though the loan was made

15 under Public Law 91–229 (25

16 U.S.C. 488 et seq.).’’;

17 (B) by striking paragraph (3);

18 (C) in paragraph (4)—

19 (i) by striking subparagraph (B);

20 (ii) in subparagraph (A)—

21 (I) in clause (i), by striking ‘‘(i)’’;

22 and

23 (II) by redesignating clause (ii)

24 as subparagraph (B); and
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1 (iii) in subparagraph (B) (as redesig2 nated by clause (ii)(II)), by striking

3 ‘‘clause (i)’’ and inserting ‘‘subparagraph

4 (A)’’;

5 (D) by striking paragraph (5);

6 (E) by striking paragraph (6);

7 (F) by redesignating paragraph (4) as

8 paragraph (3); and

9 (G) by redesignating paragraphs (7)

10 through (10) as paragraphs (4) through (7), re11 spectively.

12 SEC. 634. DEFINITIONS.

13 Section 343(a) of the Consolidated Farm and Rural

14 Development Act (7 U.S.C. 1991(a)) is amended—

15 (1) in paragraph (11)—

16 (A) in the text preceding subparagraph

17 (A), by striking ‘‘applicant—’’ and inserting

18 ‘‘applicant, regardless of whether participating

19 in a program under section 310E—’’; and

20 (B) in subparagraph (F)—

21 (i) by striking ‘‘15 percent’’ and in22 serting ‘‘35 percent’’; and

23 (ii) by inserting before the semicolon

24 at the end the following: ‘‘, except that this
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1 subparagraph shall not apply to loans

2 under subtitle B’’; and

3 (2) by adding at the end the following:

4 ‘‘(12) DEBT FORGIVENESS.—

5 ‘‘(A) IN GENERAL.—The term ‘debt for6 giveness’ means reducing or terminating a farm

7 loan made or guaranteed under this title, in a

8 manner that results in a loss to the Secretary,

9 through—

10 ‘‘(i) writing-down or writing-off a loan

11 under section 353;

12 ‘‘(ii) compromising, adjusting, reduc13 ing, or charging-off a debt or claim under

14 section 331;

15 ‘‘(iii) paying a loss on a guaranteed

16 loan under section 357; or

17 ‘‘(iv) discharging a debt as a result of

18 bankruptcy.

19 ‘‘(B) LOAN RESTRUCTURING.—The term

20 ‘debt forgiveness’ does not include consolida21 tion, rescheduling, reamortization, or deferral.’’.

22 SEC. 635. AUTHORIZATION FOR LOANS.

23 Section 346 of the Consolidated Farm and Rural De24 velopment Act (7 U.S.C. 1994) is amended—
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1 (1) in the second sentence of subsection (a), by

2 striking ‘‘with or without’’ and all that follows

3 through ‘‘administration’’ and inserting the follow4 ing: ‘‘without authority for the Secretary to transfer

5 amounts between the categories’’; and

6 (2) by striking subsection (b) and inserting the

7 following:

8 ‘‘(b) AUTHORIZATION FOR LOANS.—

9 ‘‘(1) IN GENERAL.—The Secretary may make

10 or guarantee loans under subtitles A and B from the

11 Agricultural Credit Insurance Fund established

12 under section 309 in not more than the following

13 amounts:

14 ‘‘(A) FISCAL YEAR 1996.—For fiscal year

15 1996, $3,085,000,000, of which—

16 ‘‘(i) $585,000,000 shall be for direct

17 loans, of which—

18 ‘‘(I) $85,000,000 shall be for

19 farm ownership loans under subtitle

20 A; and

21 ‘‘(II) $500,000,000 shall be for

22 operating loans under subtitle B; and

23 ‘‘(ii) $2,500,000,000 shall be for

24 guaranteed loans, of which—
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1 ‘‘(I) $600,000,000 shall be for

2 farm ownership loans under subtitle

3 A; and

4 ‘‘(II) $1,900,000,000 shall be for

5 operating loans under subtitle B.

6 ‘‘(B) FISCAL YEAR 1997.—For fiscal year

7 1997, $3,165,000,000, of which—

8 ‘‘(i) $585,000,000 shall be for direct

9 loans, of which—

10 ‘‘(I) $85,000,000 shall be for

11 farm ownership loans under subtitle

12 A; and

13 ‘‘(II) $500,000,000 shall be for

14 operating loans under subtitle B; and

15 ‘‘(ii) $2,580,000,000 shall be for

16 guaranteed loans, of which—

17 ‘‘(I) $630,000,000 shall be for

18 farm ownership loans under subtitle

19 A; and

20 ‘‘(II) $1,950,000,000 shall be for

21 operating loans under subtitle B.

22 ‘‘(C) FISCAL YEAR 1998.—For fiscal year

23 1998, $3,245,000,000, of which—

24 ‘‘(i) $585,000,000 shall be for direct

25 loans, of which—
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1 ‘‘(I) $85,000,000 shall be for

2 farm ownership loans under subtitle

3 A; and

4 ‘‘(II) $500,000,000 shall be for

5 operating loans under subtitle B; and

6 ‘‘(ii) $2,660,000,000 shall be for

7 guaranteed loans, of which—

8 ‘‘(I) $660,000,000 shall be for

9 farm ownership loans under subtitle

10 A; and

11 ‘‘(II) $2,000,000,000 shall be for

12 operating loans under subtitle B.

13 ‘‘(D) FISCAL YEAR 1999.—For fiscal year

14 1999, $3,325,000,000, of which—

15 ‘‘(i) $585,000,000 shall be for direct

16 loans, of which—

17 ‘‘(I) $85,000,000 shall be for

18 farm ownership loans under subtitle

19 A; and

20 ‘‘(II) $500,000,000 shall be for

21 operating loans under subtitle B; and

22 ‘‘(ii) $2,740,000,000 shall be for

23 guaranteed loans, of which—
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1 ‘‘(I) $690,000,000 shall be for

2 farm ownership loans under subtitle

3 A; and

4 ‘‘(II) $2,050,000,000 shall be for

5 operating loans under subtitle B.

6 ‘‘(E) FISCAL YEAR 2000.—For fiscal year

7 2000, $3,435,000,000, of which—

8 ‘‘(i) $585,000,000 shall be for direct

9 loans, of which—

10 ‘‘(I) $85,000,000 shall be for

11 farm ownership loans under subtitle

12 A; and

13 ‘‘(II) $500,000,000 shall be for

14 operating loans under subtitle B; and

15 ‘‘(ii) $2,850,000,000 shall be for

16 guaranteed loans, of which—

17 ‘‘(I) $750,000,000 shall be for

18 farm ownership loans under subtitle

19 A; and

20 ‘‘(II) $2,100,000,000 shall be for

21 operating loans under subtitle B.

22 ‘‘(F) FISCAL YEAR 2001.—For fiscal year

23 2001, $3,435,000,000, of which—

24 ‘‘(i) $585,000,000 shall be for direct

25 loans, of which—
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1 ‘‘(I) $85,000,000 shall be for

2 farm ownership loans under subtitle

3 A; and

4 ‘‘(II) $500,000,000 shall be for

5 operating loans under subtitle B; and

6 ‘‘(ii) $2,850,000,000 shall be for

7 guaranteed loans, of which—

8 ‘‘(I) $750,000,000 shall be for

9 farm ownership loans under subtitle

10 A; and

11 ‘‘(II) $2,100,000,000 shall be for

12 operating loans under subtitle B.

13 ‘‘(G) FISCAL YEAR 2002.—For fiscal year

14 2002, $3,435,000,000, of which—

15 ‘‘(i) $585,000,000 shall be for direct

16 loans, of which—

17 ‘‘(I) $85,000,000 shall be for

18 farm ownership loans under subtitle

19 A; and

20 ‘‘(II) $500,000,000 shall be for

21 operating loans under subtitle B; and

22 ‘‘(ii) $2,850,000,000 shall be for

23 guaranteed loans, of which—
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1 ‘‘(I) $750,000,000 shall be for

2 farm ownership loans under subtitle

3 A; and

4 ‘‘(II) $2,100,000,000 shall be for

5 operating loans under subtitle B.

6 ‘‘(2) BEGINNING FARMERS AND RANCHERS.—

7 ‘‘(A) DIRECT LOANS.—

8 ‘‘(i) FARM OWNERSHIP LOANS.—Of

9 the amounts made available under para10 graph (1) for direct farm ownership loans,

11 the Secretary shall reserve 70 percent of

12 available funds for qualified beginning

13 farmers and ranchers.

14 ‘‘(ii) OPERATING LOANS.—Of the

15 amounts made available under paragraph

16 (1) for direct operating loans, the Sec17 retary shall reserve for qualified beginning

18 farmers and ranchers—

19 ‘‘(I) for fiscal year 1996, 25 per20 cent;

21 ‘‘(II) for fiscal year 1997, 25

22 percent;

23 ‘‘(III) for fiscal year 1998, 25

24 percent;
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1 ‘‘(IV) for fiscal year 1999, 30

2 percent; and

3 ‘‘(V) for each of fiscal years 2000

4 through 2002, 35 percent.

5 ‘‘(iii) FUNDS RESERVED UNTIL SEP6 TEMBER 1.—Funds reserved for beginning

7 farmers or ranchers under this subpara8 graph shall be reserved only until Septem9 ber 1 of each fiscal year.

10 ‘‘(B) GUARANTEED LOANS.—

11 ‘‘(i) FARM OWNERSHIP LOANS.—Of

12 the amounts made available under para13 graph (1) for guaranteed farm ownership

14 loans, the Secretary shall reserve 25 per15 cent for qualified beginning farmers and

16 ranchers.

17 ‘‘(ii) OPERATING LOANS.—Of the

18 amounts made available under paragraph

19 (1) for guaranteed operating loans, the

20 Secretary shall reserve 40 percent for

21 qualified beginning farmers and ranchers.

22 ‘‘(iii) FUNDS RESERVED UNTIL APRIL

23 1.—Funds reserved for beginning farmers

24 or ranchers under this subparagraph shall
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1 be reserved only until April 1 of each fiscal

2 year.

3 ‘‘(C) RESERVED FUNDS FOR ALL QUALI4 FIED BEGINNING FARMERS AND RANCHERS.—If

5 a qualified beginning farmer or rancher meets

6 the eligibility criteria for receiving a direct or

7 guaranteed loan under section 302, 310E, or

8 311, the Secretary shall make or guarantee the

9 loan if sufficient funds reserved under this

10 paragraph are available to make or guarantee

11 the loan.

12 ‘‘(3) TRANSFER FOR DOWN PAYMENT LOANS.—

13 ‘‘(A) IN GENERAL.—Notwithstanding sub14 section (a), subject to subparagraph (B)—

15 ‘‘(i) beginning on August 1 of each

16 fiscal year, the Secretary shall use avail17 able unsubsidized guaranteed farm operat18 ing loan funds to fund approved direct

19 farm ownership loans to beginning farmers

20 and ranchers under the down payment

21 loan program established under section

22 310E; and

23 ‘‘(ii) beginning on September 1 of

24 each fiscal year, the Secretary shall use

25 available unsubsidized guaranteed farm op-
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1 erating loan funds to fund approved direct

2 farm ownership loans to beginning farmers

3 and ranchers.

4 ‘‘(B) LIMITATION.—The Secretary shall

5 limit the transfer of funds under subparagraph

6 (A) so that all guaranteed farm operating loans

7 that have been approved, or will be approved,

8 during the fiscal year shall be funded to extent

9 of appropriated amounts.

10 ‘‘(4) TRANSFER FOR CREDIT SALES OF FARM

11 INVENTORY PROPERTY.—

12 ‘‘(A) IN GENERAL.—Notwithstanding sub13 section (a), subject to subparagraphs (B) and

14 (C), beginning on September 1 of each fiscal

15 year, the Secretary may use available emer16 gency disaster loan funds appropriated for the

17 fiscal year to fund the credit sale of farm real

18 estate in the inventory of the Secretary.

19 ‘‘(B) SUPPLEMENTAL APPROPRIATIONS.—

20 The transfer authority provided under subpara21 graph (A) does not include any emergency dis22 aster loan funds made available to the Sec23 retary for any fiscal year as a result of a sup24 plemental appropriation made by Congress.
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1 ‘‘(C) LIMITATION.—The Secretary shall

2 limit the transfer of funds under subparagraph

3 (A) so that all emergency disaster loans that

4 have been approved, or will be approved, during

5 the fiscal year shall be funded to extent of ap6 propriated amounts.’’.

7 SEC. 636. LIST OF CERTIFIED LENDERS AND INVENTORY

8 PROPERTY DEMONSTRATION PROJECT.

9 (a) IN GENERAL.—Section 351 of the Consolidated

10 Farm and Rural Development Act (7 U.S.C. 1999) is

11 amended—

12 (1) in subsection (f)—

13 (A) by striking ‘‘Each Farmers Home Ad14 ministration county supervisor’’ and inserting

15 ‘‘The Secretary’’;

16 (B) by striking ‘‘approved lenders’’ and in17 serting ‘‘lenders’’; and

18 (C) by striking ‘‘the Farmers Home Ad19 ministration’’; and

20 (2) by striking subsection (h).

21 (b) TECHNICAL AMENDMENTS.—

22 (1) Section 1320 of the Food Security Act of

23 1985 (Public Law 99–198; 7 U.S.C. 1999 note) is

24 amended by striking ‘‘Effective only’’ and all that

25 follows through ‘‘1995, the’’ and inserting ‘‘The’’.
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1 (2) Section 351(a) of the Consolidated Farm

2 and Rural Development Act (7 U.S.C. 1999) is

3 amended—

4 (A) by striking ‘‘SEC. 351. (a) The’’ and

5 inserting the following:

6 ‘‘SEC. 351. INTEREST RATE REDUCTION PROGRAM.

7 ‘‘(a) ESTABLISHMENT OF PROGRAM.—

8 ‘‘(1) IN GENERAL.—The’’; and

9 (B) by adding at the end the following:

10 ‘‘(2) TERMINATION OF AUTHORITY.—The au11 thority provided by this subsection shall terminate

12 on September 30, 2002.’’.

13 SEC. 637. HOMESTEAD PROPERTY.

14 Section 352(c) of the Consolidated Farm and Rural

15 Development Act (7 U.S.C. 2000(c)) is amended—

16 (1) in paragraph (1)(A), by striking ‘‘90’’ each

17 place it appears and inserting ‘‘30’’; and

18 (2) in paragraph (6), by striking ‘‘Within 30’’

19 and all that follows through ‘‘title,’’ and insert ‘‘Not

20 later than the date of acquisition of the property se21 curing a loan made under this title (or, in the case

22 of real property in inventory on the effective date of

23 the Agricultural Reform and Improvement Act of

24 1996, not later than 5 days after the date of enact-
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1 ment of the Act),’’ and by striking the second sen2 tence.

3 SEC. 638. RESTRUCTURING.

4 Section 353 of the Consolidated Farm and Rural De5 velopment Act (7 U.S.C. 2001) is amended—

6 (1) in subsection (c)—

7 (A) in paragraph (3) by striking subpara8 graph (C) and inserting the following:

9 ‘‘(C) CASH FLOW MARGIN.—

10 ‘‘(i) ASSUMPTION.—For the purpose

11 of assessing under subparagraph (A) the

12 ability of a borrower to meet debt obliga13 tions and continue farming operations, the

14 Secretary shall assume that the borrower

15 needs up to 110 percent of the amount in16 dicated for payment of farm operating ex17 penses, debt service obligations, and family

18 living expenses.

19 ‘‘(ii) AVAILABLE INCOME.—If an

20 amount up to 110 percent of the amount

21 determined under subparagraph (A) is

22 available, the Secretary shall consider the

23 income of the borrower to be adequate to

24 meet all expenses, including the debt obli25 gations of the borrower.’’; and
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1 (B) by striking paragraph (6) and insert2 ing the following:

3 ‘‘(6) TERMINATION OF LOAN OBLIGATIONS.—

4 The obligations of a borrower to the Secretary under

5 a loan shall terminate if—

6 ‘‘(A) the borrower satisfies the require7 ments of paragraphs (1) and (2) of subsection

8 (b);

9 ‘‘(B) the value of the restructured loan is

10 less than the recovery value; and

11 ‘‘(C) not later than 90 days after receipt

12 of the notification described in paragraph

13 (4)(B), the borrower pays (or obtains third14 party financing to pay) the Secretary an

15 amount equal to the current market value.’’;

16 (2) by striking subsection (k); and

17 (3) by redesignating subsections (l) through (p)

18 as subsections (k) through (o), respectively.

19 SEC. 639. TRANSFER OF INVENTORY LANDS.

20 Section 354 of the Consolidated Farm and Rural De21 velopment Act (7 U.S.C. 2002) is amended—

22 (1) in the matter preceding paragraph (1), by

23 striking ‘‘The Secretary, without reimbursement,’’

24 and inserting the following:
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1 ‘‘(a) IN GENERAL.—Subject to subsection (b), the

2 Secretary’’;

3 (2) by striking paragraph (2) and inserting the

4 following:

5 ‘‘(2) that is eligible to be disposed of in accord6 ance with section 335; and’’; and

7 (3) by adding at the end the following:

8 ‘‘(b) CONDITIONS.—The Secretary may not transfer

9 any property or interest under subsection (a) unless—

10 ‘‘(1) at least 2 public notices are given of the

11 transfer;

12 ‘‘(2) if requested, at least 1 public meeting is

13 held prior to the transfer; and

14 ‘‘(3) the Governor and at least 1 elected county

15 official are consulted prior to the transfer.’’.

16 SEC. 640. IMPLEMENTATION OF TARGET PARTICIPATION

17 RATES.

18 Section 355 of the Consolidated Farm and Rural De19 velopment Act (7 U.S.C. 2003) is amended by adding at

20 the end the following:

21 ‘‘(f) IMPLEMENTATION CONSISTENT WITH SUPREME

22 COURT HOLDING.—Not later than 180 days after the date

23 of enactment of this subsection, the Secretary shall ensure

24 that the implementation of this section is consistent with

25 the holding of the Supreme Court in Adarand Construc-
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1 tors, Inc. v. Federico Pena, Secretary of Transportation,

2 63 U.S.L.W. 4523 (U.S. June 12, 1995).’’.

3 SEC. 641. DELINQUENT BORROWERS AND CREDIT STUDY.

4 The Consolidated Farm and Rural Development Act

5 (7 U.S.C. 1921 et seq.) is amended by adding at the end

6 the following:

7 ‘‘SEC. 372. PAYMENT OF INTEREST AS A CONDITION OF

8 LOAN SERVICING FOR BORROWERS.

9 ‘‘The Secretary may not reschedule or reamortize a

10 loan for a borrower under this title who has not requested

11 consideration under section 331D(e) unless the borrower

12 pays a portion, as determined by the Secretary, of the in13 terest due on the loan.

14 ‘‘SEC. 373. LOAN AND LOAN SERVICING LIMITATIONS

15 ‘‘(a) DELINQUENT BORROWERS PROHIBITED FROM

16 OBTAINING DIRECT OPERATING LOANS.—The Secretary

17 may not make a direct operating loan under subtitle B

18 to a borrower who is delinquent on any loan made or guar19 anteed under this title.

20 ‘‘(b) LOANS PROHIBITED FOR BORROWERS THAT

21 HAVE RECEIVED DEBT FORGIVENESS.—

22 ‘‘(1) IN GENERAL.—Except as provided in para23 graph (2), the Secretary may not make or guarantee

24 a loan under this title to a borrower who received

25 debt forgiveness under this title.
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1 ‘‘(2) EXCEPTION.—The Secretary may make a

2 direct or guaranteed farm operating loan for paying

3 annual farm or ranch operating expenses to a bor4 rower who was restructured with debt write-down

5 under section 353.

6 ‘‘(c) NO MORE THAT 1 DEBT FORGIVENESS FOR A

7 BORROWER ON A DIRECT LOAN.—The Secretary may not

8 provide debt forgiveness to a borrower on a direct loan

9 made under this title if the borrower has received debt

10 forgiveness on another direct loan under this title.

11 ‘‘SEC. 374. CREDIT STUDY.

12 ‘‘(a) IN GENERAL.—The Secretary of Agriculture

13 shall perform a study and report to the Committee on Ag14 riculture in the House of Representatives and the Commit15 tee on Agriculture, Nutrition, and Forestry in the Senate

16 on the demand for and availability of credit in rural areas

17 for agriculture, rural housing, and rural development.

18 ‘‘(b) PURPOSE.—The purpose of the study is to en19 sure that Congress has current and comprehensive infor20 mation to consider as Congress deliberates on the credit

21 needs of rural America and the availability of credit to

22 satisfy the needs of rural America.

23 ‘‘(c) ITEMS IN STUDY.—The study should be based

24 on the most current available data and should include—
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1 ‘‘(1) rural demand for credit from the Farm

2 Credit System, the ability of the Farm Credit Sys3 tem to meet the demand, and the extent to which

4 the Farm Credit System provided loans to satisfy

5 the demand;

6 ‘‘(2) rural demand for credit from the nation’s

7 banking system, the ability of banks to meet the de8 mand, and the extent to which banks provided loans

9 to satisfy the demand;

10 ‘‘(3) rural demand for credit from the Sec11 retary, the ability of the Secretary to meet the de12 mand, and the extent to which the Secretary pro13 vided loans to satisfy the demand;

14 ‘‘(4) rural demand for credit from other Fed15 eral agencies, the ability of the agencies to meet the

16 demand, and the extent to which the agencies pro17 vided loans to satisfy the demand;

18 ‘‘(5) what measure or measures exist to gauge

19 the overall demand for rural credit and the extent to

20 which rural demand for credit is satisfied, and what

21 the measures have shown;

22 ‘‘(6) a comparison of the interest rates and

23 terms charged by the Farm Credit System Farm

24 Credit Banks, production credit associations, and

25 banks for cooperatives with the rates and terms
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1 charged by the nation’s banks for credit of com2 parable risk and maturity;

3 ‘‘(7) the advantages and disadvantages of the

4 modernization and expansion proposals of the Farm

5 Credit System on the Farm Credit System, the na6 tion’s banking system, rural users of credit, local

7 rural communities, and the Federal Government, in8 cluding—

9 ‘‘(A) any added risk to the safety and

10 soundness of the Farm Credit System that may

11 result from approval of a proposal; and

12 ‘‘(B) any positive or adverse impacts on

13 competition between the Farm Credit System

14 and the nation’s banks in providing credit to

15 rural users;

16 ‘‘(8) the nature and extent of the unsatisfied

17 rural credit need that the Farm Credit System pro18 posal are supposed to address and what aspects of

19 the present Farm Credit System prevent the Farm

20 Credit System from meeting the need;

21 ‘‘(9) the advantages and disadvantages of the

22 proposal by commercial bankers to allow banks ac23 cess to the Farm Credit System as a funding source

24 on the Farm Credit System, the nation’s banking
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1 system, rural users of credit, local rural commu2 nities, and the Federal Government, including—

3 ‘‘(A) any added risk to the safety and

4 soundness of the Farm Credit System that may

5 result from approval of the proposal; and

6 ‘‘(B) any positive or adverse impacts on

7 competition between the Farm Credit System

8 and the nation’s banks in providing credit to

9 rural users; and

10 ‘‘(10) problems that commercial banks have in

11 obtaining capital for lending in rural areas, how ac12 cess to Farm Credit System funds would improve

13 the availability of capital in rural areas in ways that

14 cannot be achieved in the present system, and the

15 possible effects on the viability of the Farm Credit

16 System of granting banks access to Farm Credit

17 System funds.

18 ‘‘(d) INTERAGENCY TASK FORCE.—In completing the

19 study, the Secretary shall use, among other things, data

20 and information obtained by the interagency task force on

21 rural credit.’’.

22 CHAPTER 5—GENERAL PROVISIONS

23 SEC. 651. CONFORMING AMENDMENTS.

24 (a) Section 307(a) of the Consolidated Farm and

25 Rural Development Act (7 U.S.C. 1927(a)) is amended—
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1 (1) in paragraph (4), by striking ‘‘304(b),

2 306(a)(1), and 310B’’ and inserting ‘‘306(a)(1) and

3 310B’’; and

4 (2) in paragraph (6)(B)—

5 (A) by striking clauses (i), (ii), and (vii);

6 (B) in clause (v), by adding ‘‘and’’ at the

7 end;

8 (C) in clause (vi), by striking ‘‘, and’’ at

9 the end and inserting a period; and

10 (D) by redesignating clauses (iii) through

11 (vi) as clauses (i) through (iv), respectively.

12 (b) The second sentence of section 309(g)(1) of the

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

14 1929(g)(1)) is amended by striking ‘‘section 308,’’.

15 (c) Section 309A of the Consolidated Farm and Rural

16 Development Act (7 U.S.C. 1929a) is amended—

17 (1) in the second sentence of subsection (a), by

18 striking ‘‘304(b), 306(a)(1), 306(a)(14), 310B, and

19 312(b)’’ and inserting ‘‘306(a)(1), 306(a)(14), and

20 310B’’; and

21 (2) in subsection (b), by striking ‘‘and section

22 308’’.

23 (d) Section 310B(d) of the Consolidated Farm and

24 Rural Development Act (7 U.S.C. 1932(d)) is amended—
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1 (1) by striking ‘‘sections 304(b), 310B, and

2 312(b)’’ each place it appears in paragraphs (2),

3 (3), and (4) and inserting ‘‘this section’’; and

4 (2) in paragraph (6), by striking ‘‘this section,

5 section 304, or section 312’’ and inserting ‘‘this sec6 tion’’.

7 (e) The first sentence of section 310D(a) of the Con8 solidated Farm and Rural Development Act (7 U.S.C.

9 1934(a)) is amended by striking ‘‘paragraphs (1) through

10 (5) of section 303(a), or subparagraphs (A) through (E)

11 of section 304(a)(1)’’ and inserting ‘‘section 303(a), or

12 paragraphs (1) through (5) of section 304(b)’’.

13 (f) Section 311(b)(1) of the Consolidated Farm and

14 Rural Development Act (7 U.S.C. 1941(b)(1)) is amended

15 by striking ‘‘and for the purposes specified in section

16 312’’.

17 (g) Section 316(a) of the Consolidated Farm and

18 Rural Development Act (7 U.S.C. 1946(a)) is amended

19 by striking paragraph (3).

20 (h) Section 343 of the Consolidated Farm and Rural

21 Development Act (7 U.S.C. 1991) is amended—

22 (1) in subsection (a)(10), by striking ‘‘recre23 ation loan (RL) under section 304,’’; and

24 (2) in subsection (b)—
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1 (A) in the matter preceding paragraph (1),

2 by striking ‘‘351(h),’’; and

3 (B) by striking paragraph (4) and insert4 ing the following:

5 ‘‘(4) PRESERVATION LOAN SERVICE PRO6 GRAM.—The term ‘‘preservation loan service pro7 gram’’ means homestead retention as authorized

8 under section 352.’’.

9 (i) The first sentence of section 344 of the Consoli10 dated Farm and Rural Development Act (7 U.S.C. 1992)

11 is amended by striking ‘‘304(b), 306(a)(1), 310B, 312(b),

12 or 312(c)’’ and inserting ‘‘306(a)(1), 310B, or 312(c)’’.

13 (j) Section 353(l) of the Consolidated Farm and

14 Rural Development Act (as redesignated by section

15 638(3)) is further amended by striking ‘‘and subpara16 graphs (A)(i) and (C)(i) of section 335(e)(1),’’.

17 Subtitle B—Farm Credit System

18 CHAPTER 1—AGRICULTURAL MORTGAGE

19 SECONDARY MARKET

20 SEC. 661. DEFINITION OF REAL ESTATE.

21 Section 8.0(1)(B)(ii) of the Farm Credit Act of 1971

22 (12 U.S.C. 2279aa(1)(B)(ii)) is amended by striking

23 ‘‘with a purchase price’’ and inserting ‘‘, excluding the

24 land to which the dwelling is affixed, with a value’’.
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1 SEC. 662. DEFINITION OF CERTIFIED FACILITY.

2 Section 8.0(3) of the Farm Credit Act of 1971 (12

3 U.S.C. 2279aa(3)) is amended—

4 (1) in subparagraph (A), by striking ‘‘a second5 ary marketing agricultural loan’’ and inserting ‘‘an

6 agricultural mortgage marketing’’; and

7 (2) in subparagraph (B), by striking ‘‘, but

8 only’’ and all that follows through ‘‘(9)(B)’’.

9 SEC. 663. DUTIES OF FEDERAL AGRICULTURAL MORTGAGE

10 CORPORATION.

11 Section 8.1(b) of the Farm Credit Act of 1971 (12

12 U.S.C. 2279aa–1(b)) is amended—

13 (1) in paragraph (2), by striking ‘‘and’’ at the

14 end;

15 (2) in paragraph (3), by striking the period at

16 the end and inserting ‘‘; and’’; and

17 (3) by adding at the end the following:

18 ‘‘(4) purchase qualified loans and issue securi19 ties representing interests in, or obligations backed

20 by, the qualified loans, guaranteed for the timely re21 payment of principal and interest.’’.

22 SEC. 664. POWERS OF THE CORPORATION.

23 Section 8.3(c) of the Farm Credit Act of 1971 (12

24 U.S.C. 2279aa–3(c)) is amended—

25 (1) by redesignating paragraphs (13) and (14)

26 as paragraphs (14) and (15), respectively; and
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1 (2) by inserting after paragraph (12) the fol2 lowing:

3 ‘‘(13) To purchase, hold, sell, or assign a quali4 fied loan, to issue a guaranteed security, represent5 ing an interest in, or an obligation backed by, the

6 qualified loan, and to perform all the functions and

7 responsibilities of an agricultural mortgage market8 ing facility operating as a certified facility under this

9 title.’’.

10 SEC. 665. FEDERAL RESERVE BANKS AS DEPOSITARIES

11 AND FISCAL AGENTS.

12 Section 8.3 of the Farm Credit Act of 1971 (12

13 U.S.C. 2279aa–3) is amended—

14 (1) in subsection (d), by striking ‘‘may act as

15 depositories for, or’’ and inserting ‘‘shall act as de16 positories for, and’’; and

17 (2) in subsection (e), by striking ‘‘Secretary of

18 the Treasury may authorize the Corporation to use’’

19 and inserting ‘‘Corporation shall have access to’’.

20 SEC. 666. CERTIFICATION OF AGRICULTURAL MORTGAGE

21 MARKETING FACILITIES.

22 Section 8.5 of the Farm Credit Act of 1971 (12

23 U.S.C. 2279aa–5) is amended—

24 (1) in subsection (a)—
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1 (A) in paragraph (1), by inserting ‘‘(other

2 than the Corporation)’’ after ‘‘agricultural

3 mortgage marketing facilities’’; and

4 (B) in paragraph (2), by inserting ‘‘(other

5 than the Corporation)’’ after ‘‘agricultural

6 mortgage marketing facility’’; and

7 (2) in subsection (e)(1), by striking ‘‘(other

8 than the Corporation)’’.

9 SEC. 667. GUARANTEE OF QUALIFIED LOANS.

10 Section 8.6 of the Farm Credit Act of 1971 (12

11 U.S.C. 2279aa–6) is amended—

12 (1) in subsection (a)(1)—

13 (A) by striking ‘‘Corporation shall guaran14 tee’’ and inserting the following: ‘‘Corpora15 tion—

16 ‘‘(A) shall guarantee’’;

17 (B) by striking the period at the end and

18 inserting ‘‘; and’’; and

19 (C) by adding at the end the following:

20 ‘‘(B) may issue a security, guaranteed as

21 to the timely payment of principal and interest,

22 that represents an interest solely in, or an obli23 gation fully backed by, a pool consisting of

24 qualified loans that—
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1 ‘‘(i) meet the standards established

2 under section 8.8; and

3 ‘‘(ii) have been purchased and held by

4 the Corporation.’’;

5 (2) in subsection (d)—

6 (A) by striking paragraph (4); and

7 (B) by redesignating paragraphs (5), (6),

8 and (7) as paragraphs (4), (5), and (6), respec9 tively; and

10 (3) in subsection (g)(2), by striking ‘‘section

11 8.0(9)(B))’’ and inserting ‘‘section 8.0(9))’’.

12 SEC. 668. MANDATORY RESERVES AND SUBORDINATED

13 PARTICIPATION INTERESTS ELIMINATED.

14 (a) GUARANTEE OF QUALIFIED LOANS.—Section 8.6

15 of the Farm Credit Act of 1971 (12 U.S.C. 2279aa–6)

16 is amended by striking subsection (b).

17 (b) RESERVES AND SUBORDINATED PARTICIPATION

18 INTERESTS.—Section 8.7 of the Farm Credit Act of 1971

19 (12 U.S.C. 2279aa–7) is repealed.

20 (c) CONFORMING AMENDMENTS.—

21 (1) Section 8.0(9)(B)(i) of the Farm Credit Act

22 of 1971 (12 U.S.C. 2279aa(9)(B)(i)) is amended by

23 striking ‘‘8.7, 8.8,’’ and inserting ‘‘8.8’’.

24 (2) Section 8.6(a)(2) of the Farm Credit Act of

25 1971 (12 U.S.C. 2279aa–6(a)(2)) is amended by
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1 striking ‘‘subject to the provisions of subsection

2 (b)’’.

3 SEC. 669. STANDARDS REQUIRING DIVERSIFIED POOLS.

4 (a) IN GENERAL.—Section 8.6 of the Farm Credit

5 Act of 1971 (12 U.S.C. 2279aa–6) (as amended by section

6 668) is amended—

7 (1) by striking subsection (c); and

8 (2) by redesignating subsections (d) through (g)

9 as subsections (b) through (e), respectively.

10 (b) CONFORMING AMENDMENTS.—

11 (1) Section 8.0(9)(B)(i) of the Farm Credit Act

12 of 1971 (12 U.S.C. 2279aa(9)(B)(i)) is amended by

13 striking ‘‘(f)’’ and inserting ‘‘(d)’’.

14 (2) Section 8.13(a) of the Farm Credit Act of

15 1971 (12 U.S.C. 2279aa–13(a)) is amended by

16 striking ‘‘sections 8.6(b) and’’ in each place it ap17 pears and inserting ‘‘section’’.

18 (3) Section 8.32(b)(1)(C) of the Farm Credit

19 Act of 1971 (12 U.S.C. 2279bb–1(b)(1)(C)) is

20 amended—

21 (A) by striking ‘‘shall’’ and inserting

22 ‘‘may’’; and

23 (B) by inserting ‘‘(as in effect before the

24 date of the enactment of the Agricultural Re-
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1 form and Improvement Act of 1996)’’ before

2 the semicolon.

3 (4) Section 8.6(b) of the Farm Credit Act of

4 1971 (12 U.S.C. 2279aa–6(b)) (as redesignated by

5 subsection (a)(2)) is amended—

6 (A) by striking paragraph (4) (as redesig7 nated by section 667(2)(B)); and

8 (B) by redesignating paragraphs (5) and

9 (6) (as redesignated by section 667(2)(B)) as

10 paragraphs (4) and (5), respectively.

11 SEC. 670. SMALL FARMS.

12 Section 8.8(e) of the Farm Credit Act of 1971 (12

13 U.S.C. 2279aa–8(e)) is amended by adding at the end the

14 following: ‘‘The Board shall promote and encourage the

15 inclusion of qualified loans for small farms and family

16 farmers in the agricultural mortgage secondary market.’’.

17 SEC. 671. DEFINITION OF AN AFFILIATE.

18 Section 8.11(e) of the Farm Credit Act of 1971 (21

19 U.S.C. 2279aa–11(e)) is amended—

20 (1) by striking ‘‘a certified facility or’’; and

21 (2) by striking ‘‘paragraphs (3) and (7), respec22 tively, of section 8.0’’ and inserting ‘‘section 8.0(7)’’.
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1 SEC. 672. STATE USURY LAWS SUPERSEDED.

2 Section 8.12 of the Farm Credit Act of 1971 (12

3 U.S.C. 2279aa–12) is amended by striking subsection (d)

4 and inserting the following:

5 ‘‘(d) STATE USURY LAWS SUPERSEDED.—A provi6 sion of the Constitution or law of any State shall not apply

7 to an agricultural loan made by an originator or a certified

8 facility in accordance with this title for sale to the Cor9 poration or to a certified facility for inclusion in a pool

10 for which the Corporation has provided, or has committed

11 to provide, a guarantee, if the loan, not later than 180

12 days after the date the loan was made, is sold to the Cor13 poration or included in a pool for which the Corporation

14 has provided a guarantee, if the provision—

15 ‘‘(1) limits the rate or amount of interest, dis16 count points, finance charges, or other charges that

17 may be charged, taken, received, or reserved by an

18 agricultural lender or a certified facility; or

19 ‘‘(2) limits or prohibits a prepayment penalty

20 (either fixed or declining), yield maintenance, or

21 make-whole payment that may be charged, taken, or

22 received by an agricultural lender or a certified facil23 ity in connection with the full or partial payment of

24 the principal amount due on a loan by a borrower

25 in advance of the scheduled date for the payment
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1 under the terms of the loan, otherwise known as a

2 prepayment of the loan principal.’’.

3 SEC. 673. EXTENSION OF CAPITAL TRANSITION PERIOD.

4 Section 8.32 of the Farm Credit Act of 1971 (12

5 U.S.C. 2279bb–1) is amended—

6 (1) in the first sentence of subsection (a), by

7 striking ‘‘Not later than the expiration of the 2-year

8 period beginning on December 13, 1991,’’ and in9 serting ‘‘Not sooner than the expiration of the 3-

10 year period beginning on the date of enactment of

11 the Agricultural Reform and Improvement Act of

12 1996,’’;

13 (2) in the first sentence of subsection (b)(2), by

14 striking ‘‘5-year’’ and inserting ‘‘8-year’’; and

15 (3) in subsection (d)—

16 (A) in the first sentence—

17 (i) by striking ‘‘The regulations estab18 lishing’’ and inserting the following:

19 ‘‘(1) IN GENERAL.—The regulations establish20 ing’’; and

21 (ii) by striking ‘‘shall contain’’ and in22 serting the following: ‘‘shall—

23 ‘‘(A) be issued by the Director for public

24 comment in the form of a notice of proposed

25 rulemaking, to be first published after the expi-
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1 ration of the period referred to in subsection

2 (a); and

3 ‘‘(B) contain’’; and

4 (B) in the second sentence, by striking

5 ‘‘The regulations shall’’ and inserting the fol6 lowing:

7 ‘‘(2) SPECIFICITY.—The regulations referred to

8 in paragraph (1) shall’’.

9 SEC. 674. MINIMUM CAPITAL LEVEL.

10 Section 8.33 of the Farm Credit Act of 1971 (12

11 U.S.C. 2279bb–2) is amended to read as follows:

12 ‘‘SEC. 8.33. MINIMUM CAPITAL LEVEL.

13 ‘‘(a) IN GENERAL.—Except as provided in subsection

14 (b), for purposes of this subtitle, the minimum capital level

15 for the Corporation shall be an amount of core capital

16 equal to the sum of—

17 ‘‘(1) 2.75 percent of the aggregate on-balance

18 sheet assets of the Corporation, as determined in ac19 cordance with generally accepted accounting prin20 ciples; and

21 ‘‘(2) 0.75 percent of the aggregate off-balance

22 sheet obligations of the Corporation, which, for the

23 purposes of this subtitle, shall include—

24 ‘‘(A) the unpaid principal balance of out25 standing securities that are guaranteed by the
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1 Corporation and backed by pools of qualified

2 loans;

3 ‘‘(B) instruments that are issued or guar4 anteed by the Corporation and are substantially

5 equivalent to instruments described in subpara6 graph (A); and

7 ‘‘(C) other off-balance sheet obligations of

8 the Corporation.

9 ‘‘(b) TRANSITION PERIOD.—

10 ‘‘(1) IN GENERAL.—For purposes of this sub11 title, the minimum capital level for the Corpora12 tion—

13 ‘‘(A) prior to January 1, 1997, shall be the

14 amount of core capital equal to the sum of—

15 ‘‘(i) 0.45 percent of aggregate off-bal16 ance sheet obligations of the Corporation;

17 ‘‘(ii) 0.45 percent of designated on18 balance sheet assets of the Corporation, as

19 determined under paragraph (2); and

20 ‘‘(iii) 2.50 percent of on-balance sheet

21 assets of the Corporation other than assets

22 designated under paragraph (2);

23 ‘‘(B) during the 1-year period ending De24 cember 31, 1997, shall be the amount of core

25 capital equal to the sum of—
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1 ‘‘(i) 0.55 percent of aggregate off-bal2 ance sheet obligations of the Corporation;

3 ‘‘(ii) 1.20 percent of designated on4 balance sheet assets of the Corporation, as

5 determined under paragraph (2); and

6 ‘‘(iii) 2.55 percent of on-balance sheet

7 assets of the Corporation other than assets

8 designated under paragraph (2);

9 ‘‘(C) during the 1-year period ending De10 cember 31, 1998, shall be the amount of core

11 capital equal to—

12 ‘‘(i) if the Corporation’s core capital is

13 not less than $25,000,000 on January 1,

14 1998, the sum of—

15 ‘‘(I) 0.65 percent of aggregate

16 off-balance sheet obligations of the

17 Corporation;

18 ‘‘(II) 1.95 percent of designated

19 on-balance sheet assets of the Cor20 poration, as determined under para21 graph (2); and

22 ‘‘(III) 2.65 percent of on-balance

23 sheet assets of the Corporation other

24 than assets designated under para25 graph (2); or
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1 ‘‘(ii) if the Corporation’s core capital

2 is less than $25,000,000 on January 1,

3 1998, the amount determined under sub4 section (a); and

5 ‘‘(D) on and after January 1, 1999, shall

6 be the amount determined under subsection (a).

7 ‘‘(2) DESIGNATED ON-BALANCE SHEET AS8 SETS.—For purposes of this subsection, the des9 ignated on-balance sheet assets of the Corporation

10 shall be—

11 ‘‘(A) the aggregate on-balance sheet assets

12 of the Corporation acquired under section

13 8.6(e); and

14 ‘‘(B) the aggregate amount of qualified

15 loans purchased and held by the Corporation

16 under section 8.3(c)(13).’’.

17 SEC. 675. CRITICAL CAPITAL LEVEL.

18 Section 8.34 of the Farm Credit Act of 1971 (12

19 U.S.C. 2279bb–3) is amended to read as follows:

20 ‘‘SEC. 8.34. CRITICAL CAPITAL LEVEL.

21 ‘‘For purposes of this subtitle, the critical capital

22 level for the Corporation shall be an amount of core capital

23 equal to 50 percent of the total minimum capital amount

24 determined under section 8.33.’’.
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1 SEC. 676. ENFORCEMENT LEVELS.

2 Section 8.35(e) of the Farm Credit Act of 1971 (12

3 U.S.C. 2279bb–4(e)) is amended by striking ‘‘during the

4 30-month period beginning on the date of the enactment

5 of this section,’’ and inserting ‘‘during the period begin6 ning on December 13, 1991, and ending on the effective

7 date of the risk based capital regulation issued by the Di8 rector under section 8.32,’’.

9 SEC. 677. RECAPITALIZATION OF THE CORPORATION.

10 Title VIII of the Farm Credit Act of 1971 (12 U.S.C.

11 2279aa et seq.) is amended by adding at the end the fol12 lowing:

13 ‘‘SEC. 8.38. RECAPITALIZATION OF THE CORPORATION.

14 ‘‘(a) MANDATORY RECAPITALIZATION.—The Cor15 poration shall increase the core capital of the Corporation

16 to an amount equal to or greater than $25,000,000, not

17 later than the earlier of—

18 ‘‘(1) the date that is 2 years after the date of

19 enactment of this section; or

20 ‘‘(2) the date that is 180 days after the end of

21 the first calendar quarter that the aggregate on-bal22 ance sheet assets of the Corporation, plus the out23 standing principal of the off-balance sheet obliga24 tions of the Corporation, equal or exceed

25 $2,000,000,000.
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1 ‘‘(b) RAISING CORE CAPITAL.—In carrying out this

2 section, the Corporation may issue stock under section 8.4

3 and otherwise employ any recognized and legitimate

4 means of raising core capital in the power of the Corpora5 tion under section 8.3.

6 ‘‘(c) LIMITATION ON GROWTH OF TOTAL ASSETS.—

7 During the 2-year period beginning on the date of enact8 ment of this section, the aggregate on-balance sheet assets

9 of the Corporation plus the outstanding principal of the

10 off-balance sheet obligations of the Corporation may not

11 exceed $3,000,000,000 if the core capital of the Corpora12 tion is less than $25,000,000.

13 ‘‘(d) ENFORCEMENT.—If the Corporation fails to

14 carry out subsection (a) by the date required under para15 graph (1) or (2) of subsection (a), the Corporation may

16 not purchase a new qualified loan or issue or guarantee

17 a new loan-backed security until the core capital of the

18 Corporation is increased to an amount equal to or greater

19 than $25,000,000.’’.

20 SEC. 678. LIQUIDATION OF THE FEDERAL AGRICULTURAL

21 MORTGAGE CORPORATION.

22 Title VIII of the Farm Credit Act of 1971 (12 U.S.C.

23 2279aa et seq.) (as amended by section 677) is amended

24 by adding at the end the following:
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1 ‘‘Subtitle C—Receivership, Con2 servatorship, and Liquidation of

3 the Federal Agricultural Mort4 gage Corporation

5 ‘‘SEC. 8.41. CONSERVATORSHIP; LIQUIDATION; RECEIVER6 SHIP.

7 ‘‘(a) VOLUNTARY LIQUIDATION.—The Corporation

8 may voluntarily liquidate only with the consent of, and in

9 accordance with a plan of liquidation approved by, the

10 Farm Credit Administration Board.

11 ‘‘(b) INVOLUNTARY LIQUIDATION.—

12 ‘‘(1) IN GENERAL.—The Farm Credit Adminis13 tration Board may appoint a conservator or receiver

14 for the Corporation under the circumstances speci15 fied in section 4.12(b).

16 ‘‘(2) APPLICATION.—In applying section

17 4.12(b) to the Corporation under paragraph (1)—

18 ‘‘(A) the Corporation shall also be consid19 ered insolvent if the Corporation is unable to

20 pay its debts as they fall due in the ordinary

21 course of business;

22 ‘‘(B) a conservator may also be appointed

23 for the Corporation if the authority of the Cor24 poration to purchase qualified loans or issue or
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1 guarantee loan-backed securities is suspended;

2 and

3 ‘‘(C) a receiver may also be appointed for

4 the Corporation if—

5 ‘‘(i)(I) the authority of the Corpora6 tion to purchase qualified loans or issue or

7 guarantee loan-backed securities is sus8 pended; or

9 ‘‘(II) the Corporation is classified

10 under section 8.35 as within level III or IV

11 and the alternative actions available under

12 subtitle B are not satisfactory; and

13 ‘‘(ii) the Farm Credit Administration

14 determines that the appointment of a con15 servator would not be appropriate.

16 ‘‘(3) NO EFFECT ON SUPERVISORY ACTIONS.—

17 The grounds for appointment of a conservator for

18 the Corporation under this subsection shall be in ad19 dition to those in section 8.37.

20 ‘‘(c) APPOINTMENT OF CONSERVATOR OR RE21 CEIVER.—

22 ‘‘(1) QUALIFICATIONS.—Notwithstanding sec23 tion 4.12(b), if a conservator or receiver is appointed

24 for the Corporation, the conservator or receiver shall

25 be—
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1 ‘‘(A) the Farm Credit Administration or

2 any other governmental entity or employee, in3 cluding the Farm Credit System Insurance Cor4 poration; or

5 ‘‘(B) any person that—

6 ‘‘(i) has no claim against, or financial

7 interest in, the Corporation or other basis

8 for a conflict of interest as the conservator

9 or receiver; and

10 ‘‘(ii) has the financial and manage11 ment expertise necessary to direct the op12 erations and affairs of the Corporation

13 and, if necessary, to liquidate the Corpora14 tion.

15 ‘‘(2) COMPENSATION.—

16 ‘‘(A) IN GENERAL.—A conservator or re17 ceiver for the Corporation and professional per18 sonnel (other than a Federal employee) em19 ployed to represent or assist the conservator or

20 receiver may be compensated for activities con21 ducted as, or for, a conservator or receiver.

22 ‘‘(B) LIMIT ON COMPENSATION.—Com23 pensation may not be provided in amounts

24 greater than the compensation paid to employ25 ees of the Federal Government for similar serv-
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1 ices, except that the Farm Credit Administra2 tion may provide for compensation at higher

3 rates that are not in excess of rates prevailing

4 in the private sector if the Farm Credit Admin5 istration determines that compensation at high6 er rates is necessary in order to recruit and re7 tain competent personnel.

8 ‘‘(C) CONTRACTUAL ARRANGEMENTS.—

9 The conservator or receiver may contract with

10 any governmental entity, including the Farm

11 Credit System Insurance Corporation, to make

12 personnel, services, and facilities of the entity

13 available to the conservator or receiver on such

14 terms and compensation arrangements as shall

15 be mutually agreed, and each entity may pro16 vide the same to the conservator or receiver.

17 ‘‘(3) EXPENSES.—A valid claim for expenses of

18 the conservatorship or receivership (including com19 pensation under paragraph (2)) and a valid claim

20 with respect to a loan made under subsection (f)

21 shall—

22 ‘‘(A) be paid by the conservator or receiver

23 from funds of the Corporation before any other

24 valid claim against the Corporation; and
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1 ‘‘(B) may be secured by a lien, on such

2 property of the Corporation as the conservator

3 or receiver may determine, that shall have pri4 ority over any other lien.

5 ‘‘(4) LIABILITY.—If the conservator or receiver

6 for the Corporation is not a Federal entity, or an of7 ficer or employee of the Federal Government, the

8 conservator or receiver shall not be personally liable

9 for damages in tort or otherwise for an act or omis10 sion performed pursuant to and in the course of the

11 conservatorship or receivership, unless the act or

12 omission constitutes gross negligence or any form of

13 intentional tortious conduct or criminal conduct.

14 ‘‘(5) INDEMNIFICATION.—The Farm Credit Ad15 ministration may allow indemnification of the con16 servator or receiver from the assets of the

17 conservatorship or receivership on such terms as the

18 Farm Credit Administration considers appropriate.

19 ‘‘(d) JUDICIAL REVIEW OF APPOINTMENT.—

20 ‘‘(1) IN GENERAL.—Notwithstanding subsection

21 (i)(1), not later than 30 days after a conservator or

22 receiver is appointed under subsection (b), the Cor23 poration may bring an action in the United States

24 District Court for the District of Columbia for an

25 order requiring the Farm Credit Administration
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1 Board to remove the conservator or receiver. The

2 court shall, on the merits, dismiss the action or di3 rect the Farm Credit Administration Board to re4 move the conservator or receiver.

5 ‘‘(2) STAY OF OTHER ACTIONS.—On the com6 mencement of an action under paragraph (1), any

7 court having jurisdiction of any other action or en8 forcement proceeding authorized under this Act to

9 which the Corporation is a party shall stay the ac10 tion or proceeding during the pendency of the action

11 for removal of the conservator or receiver.

12 ‘‘(e) GENERAL POWERS OF CONSERVATOR OR RE13 CEIVER.—The conservator or receiver for the Corporation

14 shall have such powers to conduct the conservatorship or

15 receivership as shall be provided pursuant to regulations

16 adopted by the Farm Credit Administration Board. Such

17 powers shall be comparable to the powers available to a

18 conservator or receiver appointed pursuant to section

19 4.12(b).

20 ‘‘(f) BORROWINGS FOR WORKING CAPITAL.—

21 ‘‘(1) IN GENERAL.—If the conservator or re22 ceiver of the Corporation determines that it is likely

23 that there will be insufficient funds to pay the ongo24 ing administrative expenses of the conservatorship or

25 receivership or that there will be insufficient liquid-
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1 ity to fund maturing obligations of the

2 conservatorship or receivership, the conservator or

3 receiver may borrow funds in such amounts, from

4 such sources, and at such rates of interest as the

5 conservator or receiver considers necessary or appro6 priate to meet the administrative expenses or liquid7 ity needs of the conservatorship or receivership.

8 ‘‘(2) WORKING CAPITAL FROM FARM CREDIT

9 BANKS.—A Farm Credit bank may loan funds to the

10 conservator or receiver for a loan authorized under

11 paragraph (1) or, in the event of receivership, a

12 Farm Credit bank may purchase assets of the Cor13 poration.

14 ‘‘(g) AGREEMENTS AGAINST INTERESTS OF CON15 SERVATOR OR RECEIVER.—No agreement that tends to

16 diminish or defeat the right, title, or interest of the con17 servator or receiver for the Corporation in any asset ac18 quired by the conservator or receiver as conservator or re19 ceiver for the Corporation shall be valid against the con20 servator or receiver unless the agreement—

21 ‘‘(1) is in writing;

22 ‘‘(2) is executed by the Corporation and any

23 person claiming an adverse interest under the agree24 ment, including the obligor, contemporaneously with

25 the acquisition of the asset by the Corporation;
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1 ‘‘(3) is approved by the Board or an appro2 priate committee of the Board, which approval shall

3 be reflected in the minutes of the Board or commit4 tee; and

5 ‘‘(4) has been, continuously, from the time of

6 the agreement’s execution, an official record of the

7 Corporation.

8 ‘‘(h) REPORT TO THE CONGRESS.—On a determina9 tion by the receiver for the Corporation that there are in10 sufficient assets of the receivership to pay all valid claims

11 against the receivership, the receiver shall submit to the

12 Secretary of the Treasury, the Committee on Agriculture

13 of the House of Representatives, and the Committee on

14 Agriculture, Nutrition, and Forestry of the Senate a re15 port on the financial condition of the receivership.

16 ‘‘(i) TERMINATION OF AUTHORITIES.—

17 ‘‘(1) CORPORATION.—The charter of the Cor18 poration shall be canceled, and the authority pro19 vided to the Corporation by this title shall terminate,

20 on such date as the Farm Credit Administration

21 Board determines is appropriate following the place22 ment of the Corporation in receivership, but not

23 later than the conclusion of the receivership and dis24 charge of the receiver.
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1 ‘‘(2) OVERSIGHT.—The Office of Secondary

2 Market Oversight established under section 8.11

3 shall be abolished, and section 8.11(a) and subtitle

4 B shall have no force or effect, on such date as the

5 Farm Credit Administration Board determines is ap6 propriate following the placement of the Corporation

7 in receivership, but not later than the conclusion of

8 the receivership and discharge of the receiver.’’.

9 CHAPTER 2—REGULATORY RELIEF

10 SEC. 681. COMPENSATION OF ASSOCIATION PERSONNEL.

11 Section 1.5(13) of the Farm Credit Act of 1971 (12

12 U.S.C. 2013(13)) is amended by striking ‘‘, and the ap13 pointment and compensation of the chief executive officer

14 thereof,’’.

15 SEC. 682. USE OF PRIVATE MORTGAGE INSURANCE.

16 (a) IN GENERAL.—Section 1.10(a)(1) of the Farm

17 Credit Act of 1971 (12 U.S.C. 2018(a)(1)) is amended

18 by adding at the end the following:

19 ‘‘(D) PRIVATE MORTGAGE INSURANCE.—A

20 loan on which private mortgage insurance is ob21 tained may exceed 85 percent of the appraised

22 value of the real estate security to the extent

23 that the loan amount in excess of such 85 per24 cent is covered by the insurance.’’.
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1 (b) CONFORMING AMENDMENT.— Section

2 1.10(a)(1)(A) of the Farm Credit Act of 1971 (12 U.S.C.

3 2018(a)(1)(A)) is amended by striking ‘‘paragraphs (2)

4 and (3)’’ and inserting ‘‘subparagraphs (C) and (D)’’.

5 SEC. 683. REMOVAL OF CERTAIN BORROWER REPORTING

6 REQUIREMENT.

7 Section 1.10(a) of the Farm Credit Act of 1971 (12

8 U.S.C. 2018(a)) is amended by striking paragraph (5).

9 SEC. 684. REFORM OF REGULATORY LIMITATIONS ON DIVI10 DEND, MEMBER BUSINESS, AND VOTING

11 PRACTICES OF ELIGIBLE FARMER-OWNED

12 COOPERATIVES.

13 (a) IN GENERAL.—Section 3.8(a) of the Farm Credit

14 Act of 1971 (12 U.S.C. 2129(a)) is amended by adding

15 at the end the following: ‘‘Any such association that has

16 received a loan from a bank for cooperatives shall, without

17 regard to the requirements of paragraphs (1) through (4),

18 continue to be eligible for so long as more than 50 percent

19 (or such higher percentage as is established by the bank

20 board) of the voting control of the association is held by

21 farmers, producers or harvesters of aquatic products, or

22 eligible cooperative associations.’’.

23 (b) CONFORMING AMENDMENT.— Section

24 3.8(b)(1)(D) of the Farm Credit Act of 1971 (12 U.S.C.

25 2129(b)(1)(D)) is amended by striking ‘‘and (4) of sub-
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1 section (a)’’ and inserting ‘‘and (4), or under the last sen2 tence, of subsection (a)’’.

3 SEC. 685. REMOVAL OF FEDERAL GOVERNMENT

4 CERTIFICATION REQUIREMENT FOR CER5 TAIN PRIVATE SECTOR FINANCINGS.

6 Section 3.8(b)(1)(A) of the Farm Credit Act of 1971

7 (12 U.S.C. 2129(b)(1)(A)) is amended—

8 (1) by striking ‘‘have been certified by the Ad9 ministrator of the Rural Electrification Administra10 tion to be eligible for such’’ and inserting ‘‘are eligi11 ble under the Rural Electrification Act of 1936 (7

12 U.S.C. 901 et seq.) for’’; and

13 (2) by striking ‘‘loan guarantee, and’’ and in14 serting ‘‘loan guarantee from the Administration or

15 the Bank (or a successor of the Administration or

16 the Bank), and’’.

17 SEC. 686. BORROWER STOCK.

18 Section 4.3A of the Farm Credit Act of 1971 (12

19 U.S.C. 2154a) is amended—

20 (1) by redesignating subsections (f) and (g) as

21 subsections (g) and (h), respectively; and

22 (2) by inserting after subsection (e) the follow23 ing:

24 ‘‘(f) LOANS DESIGNATED FOR SALE OR SOLD INTO

25 THE SECONDARY MARKET.—
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1 ‘‘(1) IN GENERAL.—Subject to paragraph (2)

2 and notwithstanding any other provision of this sec3 tion, the bylaws adopted by a bank or association

4 under subsection (b) may provide—

5 ‘‘(A) in the case of a loan made on or after

6 the date of enactment of this paragraph that is

7 designated, at the time the loan is made, for

8 sale into a secondary market, that no voting

9 stock or participation certificate purchase re10 quirement shall apply to the borrower for the

11 loan; and

12 ‘‘(B) in the case of a loan made before the

13 date of enactment of this paragraph that is sold

14 into a secondary market, that all outstanding

15 voting stock or participation certificates held by

16 the borrower with respect to the loan shall, sub17 ject to subsection (d)(1), be retired.

18 ‘‘(2) APPLICABILITY.—Notwithstanding any

19 other provision of this section, in the case of a loan

20 sold to a secondary market under title VIII, para21 graph (1) shall apply regardless of whether the bank

22 or association retains a subordinated participation

23 interest in a loan or pool of loans or contributes to

24 a cash reserve.

25 ‘‘(3) EXCEPTION.—
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1 ‘‘(A) IN GENERAL.—Subject to subpara2 graph (B) and notwithstanding any other provi3 sion of this section, if a loan designated for sale

4 under paragraph (1)(A) is not sold into a sec5 ondary market during the 180-day period that

6 begins on the date of the designation, the vot7 ing stock or participation certificate purchase

8 requirement that would otherwise apply to the

9 loan in the absence of a bylaw provision de10 scribed in paragraph (1)(A) shall be effective.

11 ‘‘(B) RETIREMENT.—The bylaws adopted

12 by a bank or association under subsection (b)

13 may provide that if a loan described in subpara14 graph (A) is sold into a secondary market after

15 the end of the 180-day period described in the

16 subparagraph, all outstanding voting stock or

17 participation certificates held by the borrower

18 with respect to the loan shall, subject to sub19 section (d)(1), be retired.’’.

20 SEC. 687. DISCLOSURE RELATING TO ADJUSTABLE RATE

21 LOANS.

22 Section 4.13(a)(4) of the Farm Credit Act of 1971

23 (12 U.S.C. 2199(a)(4)) is amended by inserting before the

24 semicolon at the end the following: ‘‘, and notice to the

25 borrower of a change in the interest rate applicable to the
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1 loan of the borrower may be made within a reasonable

2 time after the effective date of an increase or decrease in

3 the interest rate’’.

4 SEC. 688. BORROWERS’ RIGHTS.

5 (a) DEFINITION OF LOAN.—Section 4.14A(a)(5) of

6 the Farm Credit Act of 1971 (12 U.S.C. 2202a(a)(5)) is

7 amended—

8 (1) by striking ‘‘(5) LOAN.—The’’ and inserting

9 the following:

10 ‘‘(5) LOAN.—

11 ‘‘(A) IN GENERAL.—Subject to subpara12 graph (B), the’’; and

13 (2) by adding at the end the following:

14 ‘‘(B) EXCLUSION FOR LOANS DESIGNATED

15 FOR SALE INTO SECONDARY MARKET.—

16 ‘‘(i) IN GENERAL.—Except as pro17 vided in clause (ii), the term ‘loan’ does

18 not include a loan made on or after the

19 date of enactment of this subparagraph

20 that is designated, at the time the loan is

21 made, for sale into a secondary market.

22 ‘‘(ii) UNSOLD LOANS.—

23 ‘‘(I) IN GENERAL.—Except as

24 provided in subclause (II), if a loan

25 designated for sale under clause (i) is
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1 not sold into a secondary market dur2 ing the 180-day period that begins on

3 the date of the designation, the provi4 sions of this section and sections 4.14,

5 4.14B, 4.14C, 4.14D, and 4.36 that

6 would otherwise apply to the loan in

7 the absence of the exclusion described

8 in clause (i) shall become effective

9 with respect to the loan.

10 ‘‘(II) LATER SALE.—If a loan de11 scribed in subclause (I) is sold into a

12 secondary market after the end of the

13 180-day period described in subclause

14 (I), subclause (I) shall not apply with

15 respect to the loan beginning on the

16 date of the sale.’’.

17 (b) BORROWERS’ RIGHTS FOR POOLED LOANS.—The

18 first sentence of section 8.9(b) of the Farm Credit Act

19 of 1971 (12 U.S.C. 2279aa–9(b)) is amended by inserting

20 ‘‘(as defined in section 4.14A(a)(5))’’ after ‘‘application

21 for a loan’’.
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1 SEC. 689. FORMATION OF ADMINISTRATIVE SERVICE ENTI2 TIES.

3 Part E of title IV of the Farm Credit Act of 1971

4 is amended by inserting after section 4.28 (12 U.S.C.

5 2214) the following:

6 ‘‘SEC. 4.28A. DEFINITION OF BANK.

7 ‘‘In this part, the term ‘bank’ includes each associa8 tion operating under title II.’’.

9 SEC. 690. JOINT MANAGEMENT AGREEMENTS.

10 The first sentence of section 5.17(a)(2)(A) of the

11 Farm Credit Act of 1971 (12 U.S.C. 2252(a)(2)(A)) is

12 amended by striking ‘‘or management agreements’’.

13 SEC. 691. DISSEMINATION OF QUARTERLY REPORTS.

14 Section 5.17(a)(8) of the Farm Credit Act of 1971

15 (12 U.S.C. 2252(a)(8)) is amended by inserting after ‘‘ex16 cept that’’ the following: ‘‘the requirements of the Farm

17 Credit Administration governing the dissemination to

18 stockholders of quarterly reports of System institutions

19 may not be more burdensome or costly than the require20 ments applicable to national banks, and’’.

21 SEC. 692. REGULATORY REVIEW.

22 (a) FINDINGS.—Congress finds that—

23 (1) the Farm Credit Administration, in the role

24 of the Administration as an arms-length safety and

25 soundness regulator, has made considerable progress
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1 in reducing the regulatory burden on Farm Credit

2 System institutions;

3 (2) the efforts of the Farm Credit Administra4 tion described in paragraph (1) have resulted in cost

5 savings for Farm Credit System institutions; and

6 (3) the cost savings described in paragraph (2)

7 ultimately benefit the farmers, ranchers, agricultural

8 cooperatives, and rural residents of the United

9 States.

10 (b) CONTINUATION OF REGULATORY REVIEW.—The

11 Farm Credit Administration shall continue the com12 prehensive review of regulations governing the Farm Cred13 it System to identify and eliminate, consistent with law,

14 safety, and soundness, all regulations that are unneces15 sary, unduly burdensome or costly, or not based on law.

16 SEC. 693. EXAMINATION OF FARM CREDIT SYSTEM INSTITU17 TIONS.

18 The first sentence of section 5.19(a) of the Farm

19 Credit Act of 1971 (12 U.S.C. 2254(a)) is amended by

20 striking ‘‘each year’’ and inserting ‘‘during each 18-month

21 period’’.

22 SEC. 694. CONSERVATORSHIPS AND RECEIVERSHIPS.

23 (a) DEFINITIONS.—Section 5.51 of the Farm Credit

24 Act of 1971 (12 U.S.C. 2277a) is amended—

25 (1) by striking paragraph (5); and
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1 (2) by redesignating paragraph (6) as para2 graph (5).

3 (b) GENERAL CORPORATE POWERS.—Section 5.58 of

4 the Farm Credit Act of 1971 (12 U.S.C. 2277a–7) is

5 amended by striking paragraph (9) and inserting the fol6 lowing:

7 ‘‘(9) CONSERVATOR OR RECEIVER.—The Cor8 poration may act as a conservator or receiver.’’.

9 SEC. 695. FARM CREDIT INSURANCE FUND OPERATIONS.

10 (a) ADJUSTMENT OF PREMIUMS.—

11 (1) IN GENERAL.—Section 5.55(a) of the Farm

12 Credit Act of 1971 (12 U.S.C. 2277a–4(a)) is

13 amended—

14 (A) in paragraph (1), by striking ‘‘Until

15 the aggregate of amounts in the Farm Credit

16 Insurance Fund exceeds the secure base

17 amount, the annual premium due from any in18 sured System bank for any calendar year’’ and

19 inserting the following: ‘‘If at the end of any

20 calendar year the aggregate of amounts in the

21 Farm Credit Insurance Fund does not exceed

22 the secure base amount, subject to paragraph

23 (2), the annual premium due from any insured

24 System bank for the calendar year’’;
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1 (B) by redesignating paragraph (2) as

2 paragraph (3); and

3 (C) by inserting after paragraph (1) the

4 following:

5 ‘‘(2) REDUCED PREMIUMS.—The Corporation,

6 in the sole discretion of the Corporation, may reduce

7 by a percentage uniformly applied to all insured Sys8 tem banks the annual premium due from each in9 sured System bank during any calendar year, as de10 termined under paragraph (1).’’.

11 (2) CONFORMING AMENDMENTS.—

12 (A) Section 5.55(b) of the Farm Credit

13 Act of 1971 (12 U.S.C. 2277a–4(b)) is amend14 ed—

15 (i) by striking ‘‘Insurance Fund’’ each

16 place it appears and inserting ‘‘Farm

17 Credit Insurance Fund’’;

18 (ii) by striking ‘‘for the following cal19 endar year’’; and

20 (iii) by striking ‘‘subsection (a)’’ and

21 inserting ‘‘subsection (a)(1)’’.

22 (B) Section 5.56(a) of the Farm Credit

23 Act of 1971 (12 U.S.C. 2277a–5(a)) is amend24 ed by striking ‘‘section 5.55(a)(2)’’ each place
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1 it appears in paragraphs (2) and (3) and insert2 ing ‘‘section 5.55(a)(3)’’.

3 (C) Section 1.12(b) (12 U.S.C. 2020(b)) is

4 amended—

5 (i) in paragraph (1), by inserting ‘‘(as

6 defined in section 5.55(a)(3))’’ after ‘‘gov7 ernment-guaranteed loans’’; and

8 (ii) in paragraph (3), by inserting

9 ‘‘(as so defined)’’ after ‘‘government-guar10 anteed loans’’ each place such term ap11 pears.

12 (b) ALLOCATION TO INSURED SYSTEM BANKS AND

13 OTHER SYSTEM INSTITUTIONS OF EXCESS AMOUNTS IN

14 THE FARM CREDIT INSURANCE FUND.—Section 5.55 of

15 the Farm Credit Act of 1971 (12 U.S.C. 2277a–4) is

16 amended by adding at the end the following:

17 ‘‘(e) ALLOCATION TO SYSTEM INSTITUTIONS OF EX18 CESS RESERVES.—

19 ‘‘(1) ESTABLISHMENT OF ALLOCATED INSUR20 ANCE RESERVES ACCOUNTS.—There is hereby estab21 lished in the Farm Credit Insurance Fund an Allo22 cated Insurance Reserves Account—

23 ‘‘(A) for each insured System bank; and
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1 ‘‘(B) subject to paragraph (6)(C), for all

2 holders, in the aggregate, of Financial Assist3 ance Corporation stock.

4 ‘‘(2) TREATMENT.—Amounts in any Allocated

5 Insurance Reserves Account shall be considered to

6 be part of the Farm Credit Insurance Fund.

7 ‘‘(3) ANNUAL ALLOCATIONS.—If, at the end of

8 any calendar year, the aggregate of the amounts in

9 the Farm Credit Insurance Fund exceeds the aver10 age secure base amount for the calendar year (as

11 calculated on an average daily balance basis), the

12 Corporation shall allocate to the Allocated Insurance

13 Reserves Accounts the excess amount less the

14 amount that the Corporation, in its sole discretion,

15 determines to be the sum of the estimated operating

16 expenses and estimated insurance obligations of the

17 Corporation for the immediately succeeding calendar

18 year.

19 ‘‘(4) ALLOCATION FORMULA.—From the total

20 amount required to be allocated at the end of a cal21 endar year under paragraph (3)—

22 ‘‘(A) 10 percent of the total amount shall

23 be credited to the Allocated Insurance Reserves

24 Account established under paragraph (1)(B),

25 subject to paragraph (6)(C); and
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1 ‘‘(B) there shall be credited to the Allo2 cated Insurance Reserves Account of each in3 sured System bank an amount that bears the

4 same ratio to the total amount (less any

5 amount credited under subparagraph (A)) as

6 the average principal outstanding for the 3-year

7 period ending on the end of the calendar year

8 on loans made by the bank that are in accrual

9 status bears to the average principal outstand10 ing for the 3-year period ending on the end of

11 the calendar year on loans made by all insured

12 System banks that are in accrual status (ex13 cluding, in each case, the guaranteed portions

14 of government-guaranteed loans described in

15 subsection (a)(1)(C)).

16 ‘‘(5) USE OF FUNDS IN ALLOCATED INSURANCE

17 RESERVES ACCOUNTS.—To the extent that the sum

18 of the operating expenses of the Corporation and the

19 insurance obligations of the Corporation for a cal20 endar year exceeds the sum of operating expenses

21 and insurance obligations determined under para22 graph (3) for the calendar year, the Corporation

23 shall cover the expenses and obligations by—

24 ‘‘(A) reducing each Allocated Insurance

25 Reserves Account by the same proportion; and
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1 ‘‘(B) expending the amounts obtained

2 under subparagraph (A) before expending other

3 amounts in the Fund.

4 ‘‘(6) OTHER DISPOSITION OF ACCOUNT

5 FUNDS.—

6 ‘‘(A) IN GENERAL.—As soon as practicable

7 during each calendar year beginning more than

8 8 years after the date on which the aggregate

9 of the amounts in the Farm Credit Insurance

10 Fund exceeds the secure base amount, but not

11 earlier than January 1, 2005, the Corporation

12 may—

13 ‘‘(i) subject to subparagraphs (D) and

14 (F), pay to each insured System bank, in

15 a manner determined by the Corporation,

16 an amount equal to the lesser of—

17 ‘‘(I) 20 percent of the balance in

18 the insured System bank’s Allocated

19 Insurance Reserves Account as of the

20 preceding December 31; or

21 ‘‘(II) 20 percent of the balance in

22 the bank’s Allocated Insurance Re23 serves Account on the date of the pay24 ment; and
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1 ‘‘(ii) subject to subparagraphs (C),

2 (E), and (F), pay to each System bank

3 and association holding Financial Assist4 ance Corporation stock a proportionate

5 share, determined by dividing the number

6 of shares of Financial Assistance Corpora7 tion stock held by the institution by the

8 total number of shares of Financial Assist9 ance Corporation stock outstanding, of the

10 lesser of—

11 ‘‘(I) 20 percent of the balance in

12 the Allocated Insurance Reserves Ac13 count established under paragraph

14 (1)(B) as of the preceding December

15 31; or

16 ‘‘(II) 20 percent of the balance in

17 the Allocated Insurance Reserves Ac18 count established under paragraph

19 (1)(B) on the date of the payment.

20 ‘‘(B) AUTHORITY TO ELIMINATE OR RE21 DUCE PAYMENTS.—The Corporation may elimi22 nate or reduce payments during a calendar year

23 under subparagraph (A) if the Corporation de24 termines, in its sole discretion, that the pay25 ments, or other circumstances that might re-
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1 quire use of the Farm Credit Insurance Fund,

2 could cause the amount in the Farm Credit In3 surance Fund during the calendar year to be

4 less than the secure base amount.

5 ‘‘(C) REIMBURSEMENT FOR FINANCIAL AS6 SISTANCE CORPORATION STOCK.—

7 ‘‘(i) SUFFICIENT FUNDING.—Notwith8 standing paragraph (4)(A), on provision by

9 the Corporation for the accumulation in

10 the Account established under paragraph

11 (1)(B) of funds in an amount equal to

12 $56,000,000 (in addition to the amounts

13 described in subparagraph (F)(ii)), the

14 Corporation shall not allocate any further

15 funds to the Account except to replenish

16 the Account if funds are diminished below

17 $56,000,000 by the Corporation under

18 paragraph (5).

19 ‘‘(ii) WIND DOWN AND TERMI20 NATION.—

21 ‘‘(I) FINAL DISBURSEMENTS.—

22 On disbursement of $53,000,000 (in

23 addition to the amounts described in

24 subparagraph (F)(ii)) from the Allo25 cated Insurance Reserves Account, the
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1 Corporation shall disburse the remain2 ing amounts in the Account, as deter3 mined under subparagraph (A)(ii),

4 without regard to the percentage limi5 tations in subclauses (I) and (II) of

6 subparagraph (A)(ii).

7 ‘‘(II) TERMINATION OF AC8 COUNT.—On disbursement of

9 $56,000,000 (in addition to the

10 amounts described in subparagraph

11 (F)(ii)) from the Allocated Insurance

12 Reserves Account, the Corporation

13 shall close the Account established

14 under paragraph (1)(B) and transfer

15 any remaining funds in the Account

16 to the remaining Allocated Insurance

17 Reserves Accounts in accordance with

18 paragraph (4)(B) for the calendar

19 year in which the transfer occurs.

20 ‘‘(D) DISTRIBUTION OF PAYMENTS RE21 CEIVED.—Not later than 60 days after receipt

22 of a payment made under subparagraph (A)(i),

23 each insured System bank, in consultation with

24 affiliated associations of the insured System

25 bank, and taking into account the direct or in-
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1 direct payment of insurance premiums by the

2 associations, shall develop and implement an

3 equitable plan to distribute payments received

4 under subparagraph (A)(i) among the bank and

5 associations of the bank.

6 ‘‘(E) EXCEPTION FOR PREVIOUSLY REIM7 BURSED ASSOCIATIONS.—For purposes of sub8 paragraph (A)(ii), in any Farm Credit district

9 in which the funding bank has reimbursed 1 or

10 more affiliated associations of the bank for the

11 previously unreimbursed portion of the Finan12 cial Assistance Corporation stock held by the

13 associations, the funding bank shall be deemed

14 to be the holder of the shares of Financial As15 sistance Corporation stock for which the fund16 ing bank has provided the reimbursement.

17 ‘‘(F) INITIAL PAYMENT.—Notwithstanding

18 subparagraph (A), the initial payment made to

19 each payee under subparagraph (A) shall be in

20 such amount determined by the Corporation to

21 be equal to the sum of—

22 ‘‘(i) the total of the amounts that

23 would have been paid if payments under

24 subparagraph (A) had been authorized to

25 begin, under the same terms and condi-
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1 tions, in the first calendar year beginning

2 more than 5 years after the date on which

3 the aggregate of the amounts in the Farm

4 Credit Insurance Fund exceeds the secure

5 base amount, and to continue through the

6 2 immediately subsequent years;

7 ‘‘(ii) interest earned on any amounts

8 that would have been paid as described in

9 clause (i) from the date on which the pay10 ments would have been paid as described

11 in clause (i); and

12 ‘‘(iii) the payment to be made in the

13 initial year described in subparagraph (A),

14 based on the amount in each Account after

15 subtracting the amounts to be paid under

16 clauses (i) and (ii).’’

17 (c) TECHNICAL AMENDMENTS.—Section 5.55(d) of

18 the Farm Credit Act of 1971 (12 U.S.C. 2277a–4(d)) is

19 amended—

20 (1) in the matter preceding paragraph (1)—

21 (A) by striking ‘‘subsections (a) and (c)’’

22 and inserting ‘‘subsections (a), (c), and (e)’’;

23 and

24 (B) by striking ‘‘a Farm Credit Bank’’ and

25 inserting ‘‘an insured System bank’’; and
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1 (2) in paragraphs (1), (2), and (3), by striking

2 ‘‘Farm Credit Bank’’ each place it appears and in3 serting ‘‘insured System bank’’.

4 SEC. 696. EXAMINATIONS BY THE FARM CREDIT SYSTEM IN5 SURANCE CORPORATION.

6 Section 5.59(b)(1)(A) of the Farm Credit Act of

7 1971 (12 U.S.C. 2277a–8(b)(1)(A)) is amended by adding

8 at the end the following: ‘‘Notwithstanding any other pro9 vision of this Act, on cancellation of the charter of a Sys10 tem institution, the Corporation shall have authority to

11 examine the system institution in receivership. An exam12 ination shall be performed at such intervals as the Cor13 poration shall determine.’’.

14 SEC. 697. POWERS WITH RESPECT TO TROUBLED INSURED

15 SYSTEM BANKS.

16 (a) LEAST-COST RESOLUTION.—Section 5.61(a)(3)

17 of the Farm Credit Act of 1971 (12 U.S.C. 2277a–10(a))

18 is amended—

19 (1) by redesignating subparagraph (B) as sub20 paragraph (F); and

21 (2) by striking subparagraph (A) and inserting

22 the following:

23 ‘‘(A) LEAST-COST RESOLUTION.—Assist24 ance may not be provided to an insured System

25 bank under this subsection unless the means of
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1 providing the assistance is the least costly

2 means of providing the assistance by the Farm

3 Credit Insurance Fund of all possible alter4 natives available to the Corporation, including

5 liquidation of the bank (including paying the in6 sured obligations issued on behalf of the bank).

7 Before making a least-cost determination under

8 this subparagraph, the Corporation shall accord

9 such other insured System banks as the Cor10 poration determines to be appropriate the op11 portunity to submit information relating to the

12 determination.

13 ‘‘(B) DETERMINING LEAST COSTLY AP14 PROACH.—In determining the least costly alter15 native under subparagraph (A), the Corporation

16 shall—

17 ‘‘(i) evaluate alternatives on a

18 present-value basis, using a reasonable dis19 count rate;

20 ‘‘(ii) document the evaluation and the

21 assumptions on which the evaluation is

22 based; and

23 ‘‘(iii) retain the documentation for not

24 less than 5 years.

25 ‘‘(C) TIME OF DETERMINATION.—
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1 ‘‘(i) GENERAL RULE.—For purposes

2 of this subsection, the determination of the

3 costs of providing any assistance under any

4 provision of this section with respect to

5 any insured System bank shall be made as

6 of the date on which the Corporation

7 makes the determination to provide the as8 sistance to the institution under this sec9 tion.

10 ‘‘(ii) RULE FOR LIQUIDATIONS.—For

11 purposes of this subsection, the determina12 tion of the costs of liquidation of any in13 sured System bank shall be made as of the

14 earliest of—

15 ‘‘(I) the date on which a con16 servator is appointed for the insured

17 System bank;

18 ‘‘(II) the date on which a receiver

19 is appointed for the insured System

20 bank; or

21 ‘‘(III) the date on which the Cor22 poration makes any determination to

23 provide any assistance under this sec24 tion with respect to the insured Sys25 tem bank.
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1 ‘‘(D) RULE FOR STAND-ALONE ASSIST2 ANCE.—Before providing any assistance under

3 paragraph (1), the Corporation shall evaluate

4 the adequacy of managerial resources of the in5 sured System bank. The continued service of

6 any director or senior ranking officer who

7 serves in a policymaking role for the assisted

8 insured System bank, as determined by the

9 Corporation, shall be subject to approval by the

10 Corporation as a condition of assistance.

11 ‘‘(E) DISCRETIONARY DETERMINATIONS.—

12 Any determination that the Corporation makes

13 under this paragraph shall be in the sole discre14 tion of the Corporation.’’.

15 (b) CONFORMING AMENDMENTS.—Section 5.61(a) of

16 the Farm Credit Act of 1971 (12 U.S.C. 2277a–10(a))

17 is amended—

18 (1) in paragraph (1) by striking ‘‘IN GEN19 ERAL.—’’ and inserting ‘‘STAND-ALONE ASSIST20 ANCE.—’’; and

21 (2) in paragraph (2)—

22 (A) by striking ‘‘ENUMERATED POWERS.—

23 ’’ and inserting ‘‘FACILITATION OF MERGERS

24 OR CONSOLIDATION.—’’; and
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1 (B) in subparagraph (A) by striking ‘‘FA2 CILITATION OF MERGERS OR CONSOLIDA3 TION.—’’ and inserting ‘‘IN GENERAL.—’’.

4 SEC. 698. OVERSIGHT AND REGULATORY ACTIONS BY THE

5 FARM CREDIT SYSTEM INSURANCE COR6 PORATION.

7 The Farm Credit Act of 1971 is amended by insert8 ing after section 5.61 (12 U.S.C. 2279a–10) the following:

9 ‘‘SEC. 5.61A. OVERSIGHT ACTIONS BY THE CORPORATION.

10 ‘‘(a) DEFINITIONS.—In this section, the term ‘insti11 tution’ means—

12 ‘‘(1) an insured System bank; and

13 ‘‘(2) a production credit association or other as14 sociation making loans under section 7.6 with a di15 rect loan payable to the funding bank of the associa16 tion that comprises 20 percent or more of the fund17 ing bank’s total loan volume net of nonaccrual loans.

18 ‘‘(b) CONSULTATION REGARDING PARTICIPATION OF

19 UNDERCAPITALIZED BANKS IN ISSUANCE OF INSURED

20 OBLIGATIONS.—The Farm Credit Administration shall

21 consult with the Corporation prior to approving an insured

22 obligation that is to be issued by or on behalf of, or partici23 pated in by, any insured System bank that fails to meet

24 the minimum level for any capital requirement established

25 by the Farm Credit Administration for the bank.
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1 ‘‘(c) CONSULTATION REGARDING APPLICATIONS FOR

2 MERGERS AND RESTRUCTURINGS.—

3 ‘‘(1) CORPORATION TO RECEIVE COPY OF

4 TRANSACTION APPLICATIONS.—On receiving an ap5 plication for a merger or restructuring of an institu6 tion, the Farm Credit Administration shall forward

7 a copy of the application to the Corporation.

8 ‘‘(2) CONSULTATION REQUIRED.—If the pro9 posed merger or restructuring involves an institution

10 that fails to meet the minimum level for any capital

11 requirement established by the Farm Credit Admin12 istration applicable to the institution, the Farm

13 Credit Administration shall allow 30 days within

14 which the Corporation may submit the views and

15 recommendations of the Corporation, including any

16 conditions for approval. In determining whether to

17 approve or disapprove any proposed merger or re18 structuring, the Farm Credit Administration shall

19 give due consideration to the views and rec20 ommendations of the Corporation.

21 ‘‘SEC. 5.61B. AUTHORITY TO REGULATE GOLDEN PARA22 CHUTE AND INDEMNIFICATION PAYMENTS.

23 ‘‘(a) DEFINITIONS.—In this section:

24 ‘‘(1) GOLDEN PARACHUTE PAYMENT.—The

25 term ‘golden parachute payment’—
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1 ‘‘(A) means a payment (or any agreement

2 to make a payment) in the nature of compensa3 tion for the benefit of any institution-related

4 party under an obligation of any Farm Credit

5 System institution that—

6 ‘‘(i) is contingent on the termination

7 of the party’s relationship with the institu8 tion; and

9 ‘‘(ii) is received on or after the date

10 on which—

11 ‘‘(I) the institution is insolvent;

12 ‘‘(II) a conservator or receiver is

13 appointed for the institution;

14 ‘‘(III) the institution has been

15 assigned by the Farm Credit Adminis16 tration a composite CAMEL rating of

17 4 or 5 under the Farm Credit Admin18 istration Rating System, or an equiva19 lent rating; or

20 ‘‘(IV) the Corporation otherwise

21 determines that the institution is in a

22 troubled condition (as defined in regu23 lations issued by the Corporation);

24 and
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1 ‘‘(B) includes a payment that would be a

2 golden parachute payment but for the fact that

3 the payment was made before the date referred

4 to in subparagraph (A)(ii) if the payment was

5 made in contemplation of the occurrence of an

6 event described in any subclause of subpara7 graph (A); but

8 ‘‘(C) does not include—

9 ‘‘(i) a payment made under a retire10 ment plan that is qualified (or is intended

11 to be qualified) under section 401 of the

12 Internal Revenue Code of 1986 or other

13 nondiscriminatory benefit plan;

14 ‘‘(ii) a payment made under a bona

15 fide supplemental executive retirement

16 plan, deferred compensation plan, or other

17 arrangement that the Corporation deter18 mines, by regulation or order, to be per19 missible; or

20 ‘‘(iii) a payment made by reason of

21 the death or disability of an institution-re22 lated party.

23 ‘‘(2) INDEMNIFICATION PAYMENT.—The term

24 ‘indemnification payment’ means a payment (or any

25 agreement to make a payment) by any Farm Credit
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1 System institution for the benefit of any person who

2 is or was an institution-related party, to pay or re3 imburse the person for any liability or legal expense

4 with regard to any administrative proceeding or civil

5 action instituted by the Farm Credit Administration

6 that results in a final order under which the per7 son—

8 ‘‘(A) is assessed a civil money penalty; or

9 ‘‘(B) is removed or prohibited from partici10 pating in the conduct of the affairs of the insti11 tution.

12 ‘‘(3) INSTITUTION-RELATED PARTY.—The term

13 ‘institution-related party’ means—

14 ‘‘(A) a director, officer, employee, or agent

15 for a Farm Credit System institution or any

16 conservator or receiver of such an institution;

17 ‘‘(B) a stockholder (other than another

18 Farm Credit System institution), consultant,

19 joint venture partner, or any other person de20 termined by the Farm Credit Administration to

21 be a participant in the conduct of the affairs of

22 a Farm Credit System institution; and

23 ‘‘(C) an independent contractor (including

24 any attorney, appraiser, or accountant) that

25 knowingly or recklessly participates in any vio-
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1 lation of any law or regulation, any breach of

2 fiduciary duty, or any unsafe or unsound prac3 tice that caused or is likely to cause more than

4 a minimal financial loss to, or a significant ad5 verse effect on, the Farm Credit System institu6 tion.

7 ‘‘(4) LIABILITY OR LEGAL EXPENSE.—The

8 term ‘liability or legal expense’ means—

9 ‘‘(A) a legal or other professional expense

10 incurred in connection with any claim, proceed11 ing, or action;

12 ‘‘(B) the amount of, and any cost incurred

13 in connection with, any settlement of any claim,

14 proceeding, or action; and

15 ‘‘(C) the amount of, and any cost incurred

16 in connection with, any judgment or penalty im17 posed with respect to any claim, proceeding, or

18 action.

19 ‘‘(5) PAYMENT.—The term ‘payment’ means—

20 ‘‘(A) a direct or indirect transfer of any

21 funds or any asset; and

22 ‘‘(B) any segregation of any funds or as23 sets for the purpose of making, or under an

24 agreement to make, any payment after the date

25 on which the funds or assets are segregated,
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1 without regard to whether the obligation to

2 make the payment is contingent on—

3 ‘‘(i) the determination, after that

4 date, of the liability for the payment of the

5 amount; or

6 ‘‘(ii) the liquidation, after that date,

7 of the amount of the payment.

8 ‘‘(b) PROHIBITION.—The Corporation may prohibit

9 or limit, by regulation or order, any golden parachute pay10 ment or indemnification payment by a Farm Credit Sys11 tem institution (including any conservator or receiver of

12 the Federal Agricultural Mortgage Corporation) in trou13 bled condition (as defined in regulations issued by the Cor14 poration).

15 ‘‘(c) FACTORS TO BE TAKEN INTO ACCOUNT.—The

16 Corporation shall prescribe, by regulation, the factors to

17 be considered by the Corporation in taking any action

18 under subsection (b). The factors may include—

19 ‘‘(1) whether there is a reasonable basis to be20 lieve that an institution-related party has committed

21 any fraudulent act or omission, breach of trust or fi22 duciary duty, or insider abuse with regard to the

23 Farm Credit System institution involved that has

24 had a material effect on the financial condition of

25 the institution;
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1 ‘‘(2) whether there is a reasonable basis to be2 lieve that the institution-related party is substan3 tially responsible for the insolvency of the Farm

4 Credit System institution, the appointment of a con5 servator or receiver for the institution, or the insti6 tution’s troubled condition (as defined in regulations

7 prescribed by the Corporation);

8 ‘‘(3) whether there is a reasonable basis to be9 lieve that the institution-related party has materially

10 violated any applicable law or regulation that has

11 had a material effect on the financial condition of

12 the institution;

13 ‘‘(4) whether there is a reasonable basis to be14 lieve that the institution-related party has violated

15 or conspired to violate—

16 ‘‘(A) section 215, 657, 1006, 1014, or

17 1344 of title 18, United States Code; or

18 ‘‘(B) section 1341 or 1343 of title 18,

19 United States Code, affecting a Farm Credit

20 System institution;

21 ‘‘(5) whether the institution-related party was

22 in a position of managerial or fiduciary responsibil23 ity; and
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1 ‘‘(6) the length of time that the party was relat2 ed to the Farm Credit System institution and the

3 degree to which—

4 ‘‘(A) the payment reasonably reflects com5 pensation earned over the period of employ6 ment; and

7 ‘‘(B) the compensation represents a rea8 sonable payment for services rendered.

9 ‘‘(d) CERTAIN PAYMENTS PROHIBITED.—No Farm

10 Credit System institution may prepay the salary or any

11 liability or legal expense of any institution-related party

12 if the payment is made—

13 ‘‘(1) in contemplation of the insolvency of the

14 institution or after the commission of an act of in15 solvency; and

16 ‘‘(2) with a view to, or with the result of—

17 ‘‘(A) preventing the proper application of

18 the assets of the institution to creditors; or

19 ‘‘(B) preferring 1 creditor over another

20 creditor.

21 ‘‘(e) RULE OF CONSTRUCTION.—Nothing in this sec22 tion—

23 ‘‘(1) prohibits any Farm Credit System institu24 tion from purchasing any commercial insurance pol25 icy or fidelity bond, so long as the insurance policy
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1 or bond does not cover any legal or liability expense

2 of an institution described in subsection (a)(2); or

3 ‘‘(2) limits the powers, functions, or responsibil4 ities of the Farm Credit Administration.’’.

5 SEC. 699. FARM CREDIT SYSTEM INSURANCE CORPORA6 TION BOARD OF DIRECTORS.

7 (a) IN GENERAL.—Section 5.53 of the Farm Credit

8 Act of 1971 (12 U.S.C. 2277a–2) is amended to read as

9 follows:

10 ‘‘SEC. 5.53. BOARD OF DIRECTORS.

11 ‘‘(a) ESTABLISHMENT.—The Corporation shall be

12 managed by a Board of Directors that shall consist of the

13 members of the Farm Credit Administration Board.

14 ‘‘(b) CHAIRMAN.—The Board of Directors shall be

15 chaired by any Board member other than the Chairman

16 of the Farm Credit Administration Board.’’.

17 (b) CONFORMING AMENDMENTS.—

18 (1) Section 5314 of title 5, United States Code,

19 is amended by striking ‘‘Chairperson, Board of Di20 rectors of the Farm Credit System Insurance Cor21 poration.’’.

22 (2) Section 5315 of title 5, United States Code,

23 is amended by striking ‘‘Members, Board of Direc24 tors of the Farm Credit System Insurance Corpora25 tion.’’.
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1 SEC. 699A. LIABILITY FOR MAKING CRIMINAL REFERRALS.

2 (a) IN GENERAL.—Any institution of the Farm Cred3 it System, or any director, officer, employee, or agent of

4 a Farm Credit System institution, that discloses to a Gov5 ernment authority information proffered in good faith that

6 may be relevant to a possible violation of any law or regu7 lation shall not be liable to any person under any law of

8 the United States or any State—

9 (1) for the disclosure; or

10 (2) for any failure to notify the person involved

11 in the possible violation.

12 (b) NO PROHIBITION ON DISCLOSURE.—Any institu13 tion of the Farm Credit System, or any director, officer,

14 employee, or agent of a Farm Credit System institution,

15 may disclose information to a Government authority that

16 may be relevant to a possible violation of any law or regu17 lation.

18 TITLE VII—RURAL

19 DEVELOPMENT

20 Subtitle A—Amendments to the

21 Food, Agriculture, Conserva22 tion, and Trade Act of 1990

23 CHAPTER 1—GENERAL PROVISIONS

24 SEC. 701. RURAL INVESTMENT PARTNERSHIPS.

25 (a) IN GENERAL.—Section 2310(c)(1) of the Food,

26 Agriculture, Conservation, and Trade Act of 1990 (7
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1 U.S.C. 2007(c)(1)) is amended by striking ‘‘1996’’ and

2 inserting ‘‘2002’’.

3 (b) AUTHORIZATION OF APPROPRIATIONS.—The first

4 sentence of section 2313(d) of the Food, Agriculture, Con5 servation, and Trade Act of 1990 (7 U.S.C. 2007c) is

6 amended by striking ‘‘$10,000,000’’ and all that follows

7 through ‘‘1996’’ and inserting ‘‘$4,700,000 for each of fis8 cal years 1996 through 2002’’.

9 SEC. 702. WATER AND WASTE FACILITY FINANCING.

10 Section 2322 of the Food, Agriculture, Conservation,

11 and Trade Act of 1990 (7 U.S.C. 1926–1) is repealed.

12 SEC. 703. RURAL WASTEWATER CIRCUIT RIDER PROGRAM.

13 Section 2324 of the Food, Agriculture, Conservation,

14 and Trade Act of 1990 (Public Law 101–624; 7 U.S.C.

15 1926 note) is repealed.

16 SEC. 704. TELEMEDICINE AND DISTANCE LEARNING SERV17 ICES IN RURAL AREAS.

18 Chapter 1 of subtitle D of title XXIII of the Food,

19 Agriculture, Conservation, and Trade Act of 1990 (7

20 U.S.C. 950aaa et seq.) is amended to read as follows:
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1 ‘‘CHAPTER 1—TELEMEDICINE AND DIS2 TANCE LEARNING SERVICES IN

3 RURAL AREAS

4 ‘‘SEC. 2331. PURPOSE.

5 ‘‘The purpose of the financing programs established

6 under this chapter is to encourage and improve

7 telemedicine services and distance learning services in

8 rural areas through the use of telecommunications, com9 puter networks, and related advanced technologies by stu10 dents, teachers, medical professionals, and rural residents.

11 ‘‘SEC. 2332. DEFINITIONS.

12 ‘‘In this chapter:

13 ‘‘(1) CONSTRUCT.—The term ‘construct’ means

14 to construct, acquire, install, improve, or extend a

15 facility or system.

16 ‘‘(2) COST OF MONEY LOAN.—The term ‘cost of

17 money loan’ means a loan made under this chapter

18 bearing interest at a rate equal to the then current

19 cost to the Federal Government of loans of similar

20 maturity.

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

22 the Secretary of Agriculture.
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1 ‘‘SEC. 2333. TELEMEDICINE AND DISTANCE LEARNING

2 SERVICES IN RURAL AREAS.

3 ‘‘(a) SERVICES TO RURAL AREAS.—The Secretary is

4 authorized to provide financial assistance for the purpose

5 of financing the construction of facilities and systems to

6 provide telemedicine services and distance learning serv7 ices to persons and entities in rural areas.

8 ‘‘(b) FINANCIAL ASSISTANCE.—

9 ‘‘(1) IN GENERAL.—Financial assistance shall

10 consist of grants or cost of money loans, or both.

11 ‘‘(2) FORM.—The Secretary shall determine the

12 portion of the financial assistance provided to a re13 cipient that consists of grants and that consists of

14 cost of money loans so as to result in the maximum

15 feasible repayment to the Federal Government of the

16 financial assistance, based on the ability to repay of

17 the recipient and full utilization of funds made avail18 able to carry out this chapter.

19 ‘‘(c) RECIPIENTS.—

20 ‘‘(1) IN GENERAL.—The Secretary may provide

21 financial assistance under this chapter to—

22 ‘‘(A) entities using telemedicine services or

23 distance learning services, or both; and

24 ‘‘(B) entities providing or proposing to

25 provide telemedicine service or distance learning
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1 service, or both, to other persons at rates re2 flecting the benefit of the financial assistance.

3 ‘‘(2) ELECTRIC OR TELECOMMUNICATIONS BOR4 ROWERS.—

5 ‘‘(A) LOANS TO BORROWERS.—Subject to

6 subparagraph (B), the Secretary may provide a

7 cost of money loan under this chapter to a bor8 rower of an electric or telecommunications loan

9 under the Rural Electrification Act of 1936 (7

10 U.S.C. 901 et seq.). A borrower receiving a cost

11 of money loan under this paragraph shall—

12 ‘‘(i) make the funds provided available

13 to entities that qualify under paragraph

14 (1) for projects satisfying the requirements

15 of this chapter;

16 ‘‘(ii) use the funds provided to ac17 quire, install, improve, or extend a system

18 for the purposes of this chapter; or

19 ‘‘(iii) use the funds provided to install,

20 improve, or extend a facility for the pur21 poses of this chapter.

22 ‘‘(B) LIMITATIONS.—A borrower of an

23 electric or telecommunications loan under the

24 Rural Electrification Act of 1936 shall—
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1 ‘‘(i) make a system or facility funded

2 under subparagraph (A) available to enti3 ties that qualify under paragraph (1); and

4 ‘‘(ii) neither retain from the proceeds

5 of a loan provided under subparagraph

6 (A), nor assess a qualifying entity under

7 paragraph (1), any amount except as may

8 be required to pay the actual costs in9 curred in administering the loan funds or

10 making the system or facility available.

11 ‘‘(3) ASSISTANCE TO PROVIDE OR IMPROVE

12 SERVICES.—Financial assistance may be provided

13 under this chapter for a facility regardless of the lo14 cation of the facility if the Secretary determines that

15 the assistance is necessary to provide or improve

16 telemedicine services or distance learning services in

17 a rural area.

18 ‘‘(d) PRIORITY.—The Secretary shall establish proce19 dures to prioritize financial assistance provided under this

20 chapter considering—

21 ‘‘(1) the need for the assistance in the affected

22 rural area;

23 ‘‘(2) the financial need of the applicant;

24 ‘‘(3) the population sparsity of the affected

25 rural area;
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1 ‘‘(4) the local involvement in the project serving

2 the affected rural area;

3 ‘‘(5) geographic diversity among the recipients

4 of financial assistance;

5 ‘‘(6) the utilization of the telecommunications

6 facilities of the existing telecommunications provider;

7 ‘‘(7) the portion of total project financing pro8 vided by the applicant from the funds of the appli9 cant;

10 ‘‘(8) the portion of project financing provided

11 by the applicant with funds obtained from non-Fed12 eral sources;

13 ‘‘(9) the joint utilization of facilities financed by

14 other financial assistance;

15 ‘‘(10) the coordination of the proposed project

16 with regional projects or networks;

17 ‘‘(11) service to the widest practical number of

18 persons within the general geographic area covered

19 by the financial assistance;

20 ‘‘(12) conformity with the State strategic plan

21 as prepared under section 381D of the Consolidated

22 Farm and Rural Development Act; and

23 ‘‘(13) other factors determined appropriate by

24 the Secretary.
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1 ‘‘(e) MAXIMUM AMOUNT OF ASSISTANCE TO INDIVID2 UAL RECIPIENTS.—The Secretary may establish the maxi3 mum amount of financial assistance to be made available

4 to an individual recipient for each fiscal year under this

5 chapter by publishing notice in the Federal Register. The

6 notice shall be published not more than 45 days after

7 funds are made available to carry out this chapter during

8 a fiscal year.

9 ‘‘(f) USE OF FUNDS.—Financial assistance provided

10 under this chapter shall be used for—

11 ‘‘(1) the development and acquisition of instruc12 tional programming;

13 ‘‘(2) the development and acquisition, through

14 lease or purchase, of computer hardware and soft15 ware, audio and visual equipment, computer network

16 components, telecommunications terminal equip17 ment, telecommunications transmission facilities,

18 data terminal equipment, or interactive video equip19 ment, and other facilities that would further

20 telemedicine services or distance learning services, or

21 both;

22 ‘‘(3) providing technical assistance and instruc23 tion for the development or use of the programming,

24 equipment, or facilities referred to in paragraphs (1)

25 and (2); or
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1 ‘‘(4) other uses that are consistent with this

2 chapter, as determined by the Secretary.

3 ‘‘(g) SALARIES AND EXPENSES.—Notwithstanding

4 subsection (f), financial assistance provided under this

5 chapter shall not be used for paying salaries of employees

6 or administrative expenses.

7 ‘‘(h) EXPEDITING COORDINATED TELEPHONE

8 LOANS.—

9 ‘‘(1) IN GENERAL.—The Secretary may estab10 lish and carry out procedures to ensure that expe11 dited consideration and determination is given to ap12 plications for loans and advances of funds submitted

13 by local exchange carriers under this chapter and

14 the Rural Electrification Act of 1936 (7 U.S.C. 901

15 et seq.) to enable the exchange carriers to provide

16 advanced telecommunications services in rural areas

17 in conjunction with any other projects carried out

18 under this chapter.

19 ‘‘(2) DEADLINE IMPOSED ON SECRETARY.—Not

20 later than 45 days after the receipt of a completed

21 application for an expedited telephone loan under

22 paragraph (1), the Secretary shall respond to the

23 application. The Secretary shall notify the applicant

24 in writing of the decision of the Secretary regarding

25 each expedited loan application.
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1 ‘‘(i) NOTIFICATION OF LOCAL EXCHANGE CAR2 RIER.—

3 ‘‘(1) APPLICANTS.—Each applicant for a grant

4 for a telemedicine or distance learning project estab5 lished under this chapter shall notify the appropriate

6 local telephone exchange carrier regarding the appli7 cation filed with the Secretary for the grant.

8 ‘‘(2) SECRETARY.—The Secretary shall—

9 ‘‘(A) publish notice of applications received

10 for grants under this chapter for telemedicine

11 or distance learning projects; and

12 ‘‘(B) make the applications available for

13 inspection.

14 ‘‘SEC. 2334. ADMINISTRATION.

15 ‘‘(a) NONDUPLICATION.—The Secretary shall ensure

16 that facilities constructed using financial assistance pro17 vided under this chapter do not duplicate adequate estab18 lished telemedicine services or distance learning services.

19 ‘‘(b) LOAN MATURITY.—The maturities of cost of

20 money loans shall be determined by the Secretary, based

21 on the useful life of the facility being financed, except that

22 the loan shall not be for a period of more than 10 years.

23 ‘‘(c) LOAN SECURITY AND FEASIBILITY.—The Sec24 retary shall make a cost of money loan only after deter25 mining that the security for the loan is reasonably ade-
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1 quate and that the loan will be repaid within the period

2 of the loan.

3 ‘‘(d) ENCOURAGING CONSORTIA.—The Secretary

4 shall encourage the development of consortia to provide

5 telemedicine services or distance learning services, or both,

6 through telecommunications in rural areas served by a

7 telecommunications provider.

8 ‘‘(e) COOPERATION WITH OTHER AGENCIES.—The

9 Secretary shall cooperate, to the extent practicable, with

10 other Federal and State agencies with similar grant or

11 loan programs to pool resources for funding meritorious

12 proposals in rural areas.

13 ‘‘(f) INFORMATIONAL EFFORTS.—The Secretary

14 shall establish and implement procedures to carry out in15 formational efforts to advise potential end users located

16 in rural areas of each State about the program authorized

17 by this chapter.

18 ‘‘SEC. 2335. REGULATIONS.

19 ‘‘Not later than 180 days after the effective date of

20 the Agricultural Reform and Improvement Act of 1996,

21 the Secretary shall issue regulations to carry out this

22 chapter.
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1 ‘‘SEC. 2335A. AUTHORIZATION OF APPROPRIATIONS.

2 ‘‘There are authorized to be appropriated to carry out

3 this chapter $100,000,000 for each of fiscal years 1996

4 through 2002.’’.

5 SEC. 705. LIMITATION ON AUTHORIZATION OF APPROPRIA6 TIONS FOR RURAL TECHNOLOGY GRANTS.

7 Section 2347 of the Food, Agriculture, Conservation,

8 and Trade Act of 1990 (Public Law 101–624; 104 Stat.

9 4034) is amended—

10 (1) by striking ‘‘(a) IN GENERAL.—’’; and

11 (2) by striking subsection (b).

12 SEC. 706. MONITORING THE ECONOMIC PROGRESS OF

13 RURAL AMERICA.

14 Section 2382 of the Food, Agriculture, Conservation,

15 and Trade Act of 1990 (Public Law 101–624; 13 U.S.C.

16 141 note) is repealed.

17 SEC. 707. ANALYSIS BY OFFICE OF TECHNOLOGY ASSESS18 MENT.

19 Section 2385 of the Food, Agriculture, Conservation,

20 and Trade Act of 1990 (Public Law 101–624; 7 U.S.C.

21 950aaa–4 note) is repealed.

22 SEC. 708. RURAL HEALTH INFRASTRUCTURE IMPROVE23 MENT.

24 Section 2391 of the Food, Agriculture, Conservation,

25 and Trade Act of 1990 (Public Law 101–624; 7 U.S.C.

26 2662 note) is repealed.
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1 SEC. 709. CENSUS OF AGRICULTURE.

2 Section 2392 of the Food, Agriculture, Conservation,

3 and Trade Act of 1990 (Public Law 101–624; 104 Stat.

4 4057) is repealed.

5 CHAPTER 2—ALTERNATIVE AGRICUL6 TURAL RESEARCH AND COMMER7 CIALIZATION

8 SEC. 721. DEFINITIONS.

9 Section 1657(c) of the Food, Agriculture, Conserva10 tion, and Trade Act of 1990 (7 U.S.C. 5901(c)) is amend11 ed—

12 (1) by striking paragraphs (3) and (4);

13 (2) by redesignating paragraph (5) as para14 graph (3);

15 (3) by redesignating paragraphs (6) through

16 (12) as paragraphs (7) through (13), respectively;

17 and

18 (4) by inserting after paragraph (3) (as redesig19 nated by paragraph (2)) the following:

20 ‘‘(4) CORPORATE BOARD.—The term ‘Corporate

21 Board’ means the Board of Directors of the Cor22 poration described in section 1659.

23 ‘‘(5) CORPORATION.—The term ‘Corporation’

24 means the Alternative Agricultural Research and

25 Commercialization Corporation established under

26 section 1658.
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1 ‘‘(6) EXECUTIVE DIRECTOR.—The term ‘Execu2 tive Director’ means the Executive Director of the

3 Corporation appointed under section 1659(d)(2).’’.

4 SEC. 722. ALTERNATIVE AGRICULTURAL RESEARCH AND

5 COMMERCIALIZATION CORPORATION.

6 (a) IN GENERAL.—Section 1658 of the Food, Agri7 culture, Conservation, and Trade Act of 1990 (7 U.S.C.

8 5902) is amended to read as follows:

9 ‘‘SEC. 1658. ALTERNATIVE AGRICULTURAL RESEARCH AND

10 COMMERCIALIZATION CORPORATION.

11 ‘‘(a) ESTABLISHMENT.—To carry out this subtitle,

12 there is created a body corporate to be known as the Alter13 native Agricultural Research and Commercialization Cor14 poration, which shall be an agency of the United States,

15 within the Department of Agriculture, subject to the gen16 eral supervision and direction of the Secretary, except as

17 specifically provided for in this subtitle.

18 ‘‘(b) PURPOSE.—The purpose of the Corporation is

19 to—

20 ‘‘(1) expedite the development and market pen21 etration of industrial, nonfood, nonfeed products

22 from agricultural and forestry materials; and

23 ‘‘(2) assist the private sector in bridging the

24 gap between research results and the commercializa25 tion of the research.
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1 ‘‘(c) PLACE OF INCORPORATION.—The Corporation

2 shall be located in the District of Columbia.

3 ‘‘(d) CENTRAL OFFICE.—The Secretary shall provide

4 facilities for the principal office of the Corporation within

5 the Washington, D.C. metropolitan area.

6 ‘‘(e) WHOLLY-OWNED GOVERNMENT CORPORA7 TION.—The Corporation shall be considered a wholly8 owned government corporation for purposes of chapter 91

9 of title 31, United States Code.

10 ‘‘(f) GENERAL POWERS.—In addition to any other

11 powers granted to the Corporation under this subtitle, the

12 Corporation—

13 ‘‘(1) shall have succession in its corporate

14 name;

15 ‘‘(2) may adopt, alter, and rescind any bylaw

16 and adopt and alter a corporate seal, which shall be

17 judicially noticed;

18 ‘‘(3) may enter into any agreement or contract

19 with a person or private or governmental agency, ex20 cept that the Corporation shall not provide any fi21 nancial assistance unless specifically authorized

22 under this subtitle;

23 ‘‘(4) may lease, purchase, accept a gift or dona24 tion of, or otherwise acquire, use, own, hold, im25 prove, or otherwise deal in or with, and sell, convey,
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1 mortgage, pledge, lease, exchange, or otherwise dis2 pose of, any property, real, personal, or mixed, or

3 any interest in property, as the Corporation consid4 ers necessary in the transaction of the business of

5 the Corporation, except that this paragraph shall not

6 provide authority for carrying out a program of real

7 estate investment;

8 ‘‘(5) may sue and be sued in the corporate

9 name of the Corporation, except that—

10 ‘‘(A) no attachment, injunction, garnish11 ment, or similar process shall be issued against

12 the Corporation or property of the Corporation;

13 and

14 ‘‘(B) exclusive original jurisdiction shall re15 side in the district courts of the United States,

16 but the Corporation may intervene in any court

17 in any suit, action, or proceeding in which the

18 Corporation has an interest;

19 ‘‘(6) may independently retain legal representa20 tion;

21 ‘‘(7) may provide for and designate such com22 mittees, and the functions of the committees, as the

23 Corporate Board considers necessary or desirable,

24 ‘‘(8) may indemnify the Executive Director and

25 other officers of the Corporation, as the Corporate
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1 Board considers necessary and desirable, except that

2 the Executive Director and officers shall not be in3 demnified for an act outside the scope of employ4 ment;

5 ‘‘(9) may, with the consent of any board, com6 mission, independent establishment, or executive de7 partment of the Federal Government, including any

8 field service, use information, services, facilities, offi9 cials, and employees in carrying out this subtitle,

10 and pay for the use, which payments shall be cred11 ited to the applicable appropriation that incurred the

12 expense;

13 ‘‘(10) may obtain the services and fix the com14 pensation of any consultant and otherwise procure

15 temporary and intermittent services under section

16 3109(b) of title 5, United States Code;

17 ‘‘(11) may use the United States mails on the

18 same terms and conditions as the Executive agencies

19 of the Federal Government;

20 ‘‘(12) shall have the rights, privileges, and im21 munities of the United States with respect to the

22 right to priority of payment with respect to debts

23 due from bankrupt, insolvent, or deceased creditors;

24 ‘‘(13) may collect or compromise any obliga25 tions assigned to or held by the Corporation, includ-
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1 ing any legal or equitable rights accruing to the Cor2 poration;

3 ‘‘(14) shall determine the character of, and ne4 cessity for, obligations and expenditures of the Cor5 poration and the manner in which the obligations

6 and expenditures shall be incurred, allowed, and

7 paid, subject to provisions of law specifically applica8 ble to Government corporations;

9 ‘‘(15) may make final and conclusive settlement

10 and adjustment of any claim by or against the Cor11 poration or a fiscal officer of the Corporation;

12 ‘‘(16) may sell assets, loans, and equity inter13 ests acquired in connection with the financing of

14 projects funded by the Corporation; and

15 ‘‘(17) may exercise all other lawful powers nec16 essarily or reasonably related to the establishment of

17 the Corporation to carry out this subtitle and the

18 powers, purposes, functions, duties, and authorized

19 activities of the Corporation.

20 ‘‘(g) SPECIFIC POWERS.—To carry out this subtitle,

21 the Corporation shall have the authority to—

22 ‘‘(1) make grants to, and enter into cooperative

23 agreements and contracts with, eligible applicants

24 for research, development, and demonstration

25 projects in accordance with section 1660;
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1 ‘‘(2) make loans and interest subsidy payments

2 and invest venture capital in accordance with section

3 1661;

4 ‘‘(3) collect and disseminate information con5 cerning State, regional, and local commercialization

6 projects;

7 ‘‘(4) search for new nonfood, nonfeed products

8 that may be produced from agricultural commodities

9 and for processes to produce the products;

10 ‘‘(5) administer, maintain, and dispense funds

11 from the Alternative Agricultural Research and

12 Commercialization Revolving Fund to facilitate the

13 conduct of activities under this subtitle; and

14 ‘‘(6) engage in other activities incident to carry15 ing out the functions of the Corporation.’’.

16 (b) WHOLLY OWNED GOVERNMENT CORPORA17 TION.—Section 9101(3) of title 31, United States Code,

18 is amended—

19 (1) by redesignating subparagraph (N) (relating

20 to the Uranium Enrichment Corporation) as sub21 paragraph (O); and

22 (2) by adding at the end the following:

23 ‘‘(P) the Alternative Agricultural Research

24 and Commercialization Corporation.’’.
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1 (c) CONFORMING AMENDMENT.—Section 211(b)(5)

2 of the Department of Agriculture Reorganization Act of

3 1994 (7 U.S.C. 6911(b)(5)) is amended by striking ‘‘Al4 ternative Agricultural Research and Commercialization

5 Board’’ and inserting ‘‘Corporate Board of the Alternative

6 Agricultural Research and Commercialization Corpora7 tion’’.

8 SEC. 723. BOARD OF DIRECTORS, EMPLOYEES, AND FACILI9 TIES.

10 (a) IN GENERAL.—Section 1659 of the Food, Agri11 culture, Conservation, and Trade Act of 1990 (7 U.S.C.

12 5903) is amended to read as follows:

13 ‘‘SEC. 1659. BOARD OF DIRECTORS, EMPLOYEES, AND FA14 CILITIES.

15 ‘‘(a) IN GENERAL.—The powers of the Corporation

16 shall be vested in a Corporate Board.

17 ‘‘(b) MEMBERS OF THE CORPORATE BOARD.—The

18 Corporate Board shall consist of 10 members as follows:

19 ‘‘(1) The Under Secretary of Agriculture for

20 Rural Economic and Community Development.

21 ‘‘(2) The Under Secretary of Agriculture for

22 Research, Education, and Economics.

23 ‘‘(3) 4 members appointed by the Secretary, of

24 whom—
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1 ‘‘(A) at least 1 member shall be a rep2 resentative of the leading scientific disciplines

3 relevant to the activities of the Corporation;

4 ‘‘(B) at least 1 member shall be a producer

5 or processor of agricultural commodities; and

6 ‘‘(C) at least 1 member shall be a person

7 who is privately engaged in the commercializa8 tion of new nonfood, nonfeed products from ag9 ricultural commodities.

10 ‘‘(4) 2 members appointed by the Secretary

11 who—

12 ‘‘(A) have expertise in areas of applied re13 search relating to the development or commer14 cialization of new nonfood, nonfeed products;

15 and

16 ‘‘(B) shall be appointed from a group of at

17 least 4 individuals nominated by the Director of

18 the National Science Foundation if the nomina19 tions are made within 60 days after the date a

20 vacancy occurs.

21 ‘‘(5) 2 members appointed by the Secretary

22 who—

23 ‘‘(A) have expertise in financial and mana24 gerial matters; and
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1 ‘‘(B) shall be appointed from a group of at

2 least 4 individuals nominated by the Secretary

3 of Commerce if the nominations are made with4 in 60 days after the date a vacancy occurs.

5 ‘‘(c) RESPONSIBILITIES OF THE CORPORATE

6 BOARD.—

7 ‘‘(1) IN GENERAL.—The Corporate Board

8 shall—

9 ‘‘(A) be responsible for the general super10 vision of the Corporation and Regional Centers

11 established under section 1663;

12 ‘‘(B) determine (in consultation with Re13 gional Centers) high priority commercialization

14 areas to receive assistance under section 1663;

15 ‘‘(C) review any grant, contract, or cooper16 ative agreement to be made or entered into by

17 the Corporation under section 1660 and any fi18 nancial assistance to be provided under section

19 1661;

20 ‘‘(D) make the final decision, by majority

21 vote, on whether and how to provide assistance

22 to an applicant; and

23 ‘‘(E) using the results of the hearings and

24 other information and data collected under

25 paragraph (2), develop and establish a budget
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1 plan and a long-term operating plan to carry

2 out this subtitle.

3 ‘‘(2) AUTHORITY OF THE SECRETARY.—

4 ‘‘(A) IN GENERAL.—The Secretary shall

5 vacate and remand to the Board for reconsider6 ation any decision made pursuant to paragraph

7 (1)(D) if the Secretary determines that there

8 has been a violation of subsection (j), or any

9 conflict of interest provisions of the bylaws of

10 the Board, with respect to the decision.

11 ‘‘(B) REASONS.—In the case of any viola12 tion and referral of a funding decision to the

13 Board, the Secretary shall inform the Board of

14 the reasons for any remand pursuant to sub15 paragraph (A).

16 ‘‘(d) CHAIRPERSON.—The members of the Corporate

17 Board shall select a Chairperson from among the members

18 of the Corporate Board. The term of office of the Chair19 person shall be 2 years. The members referred to in para20 graphs (1) and (2) of subsection (b) may not serve as

21 Chairperson.

22 ‘‘(e) EXECUTIVE DIRECTOR.—

23 ‘‘(1) IN GENERAL.—The Executive Director of

24 the Corporation shall be the chief executive officer of

25 the Corporation, with such power and authority as
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1 may be conferred by the Corporate Board. The Ex2 ecutive Director shall be appointed by the Corporate

3 Board. The appointment shall be subject to the ap4 proval of the Secretary.

5 ‘‘(2) COMPENSATION.—The Executive Director

6 shall receive basic pay at the rate provided for level

7 IV of the Executive Schedule under section 5315 of

8 title 5, United States Code.

9 ‘‘(f) OFFICERS.—The Corporate Board shall estab10 lish the offices and appoint the officers of the Corporation,

11 including a Secretary, and define the duties of the officers

12 in a manner consistent with this subtitle.

13 ‘‘(g) MEETINGS.—The Corporate Board shall meet at

14 least 3 times each fiscal year at the call of the Chairperson

15 or at the request of the Executive Director. The location

16 of the meetings shall be subject to approval of the Execu17 tive Director. A quorum of the Corporate Board shall con18 sist of a majority of the members. The decisions of the

19 Corporate Board shall be made by majority vote.

20 ‘‘(h) TERM; VACANCIES.—

21 ‘‘(1) IN GENERAL.—The term of office of a

22 member of the Corporate Board shall be 4 years, ex23 cept that the members initially appointed shall be

24 appointed to serve staggered terms. A member ap25 pointed to fill a vacancy for an unexpired term may
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1 be appointed only for the remainder of the term. A

2 vacancy on the Corporate Board shall be filled in the

3 same manner as the original appointment. The Sec4 retary shall not remove a member of the Corporate

5 Board except for cause.

6 ‘‘(2) TRANSITION MEASURE.—An individual

7 who is serving on the Alternative Agricultural Re8 search and Commercialization Board on the day be9 fore the effective date of the Agricultural Reform

10 and Improvement Act of 1996 may be appointed to

11 the Corporate Board by the Secretary for a term

12 that does not exceed the term of the individual on

13 the Alternative Agricultural Research and Commer14 cialization Board if the Act had not been enacted.

15 ‘‘(i) COMPENSATION.—A member of the Corporate

16 Board who is an officer or employee of the United States

17 shall not receive any additional compensation by reason

18 of service on the Corporate Board. Any other member

19 shall receive, for each day (including travel time) the mem20 ber is engaged in the performance of the functions of the

21 Corporate Board, compensation at a rate not to exceed

22 the daily equivalent of the annual rate in effect for Level

23 IV of the Executive Schedule. A member of the Corporate

24 Board shall be reimbursed for travel, subsistence, and
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1 other necessary expenses incurred by the member in the

2 performance of the duties of the member.

3 ‘‘(j) CONFLICT OF INTEREST; FINANCIAL DISCLO4 SURE.—

5 ‘‘(1) CONFLICT OF INTEREST.—Except as pro6 vided in paragraph (3), no member of the Corporate

7 Board shall vote on any matter respecting any appli8 cation, contract, claim, or other particular matter

9 pending before the Corporation, in which, to the

10 knowledge of the member, the member, spouse, or

11 child of the member, partner, or organization in

12 which the member is serving as officer, director,

13 trustee, partner, or employee, or any person or orga14 nization with whom the member is negotiating or

15 has any arrangement concerning prospective employ16 ment, has a financial interest.

17 ‘‘(2) VIOLATIONS.—Action by a member of the

18 Corporate Board that is contrary to the prohibition

19 contained in paragraph (1) shall be cause for re20 moval of the member, but shall not impair or other21 wise affect the validity of any otherwise lawful action

22 by the Corporation in which the member partici23 pated.

24 ‘‘(3) EXCEPTIONS.—The prohibitions contained

25 in paragraph (1) shall not apply if a member of the
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1 Corporate Board advises the Corporate Board of the

2 nature of the particular matter in which the member

3 proposes to participate, and if the member makes a

4 full disclosure of the financial interest, prior to any

5 participation, and the Corporate Board determines,

6 by majority vote, that the financial interest is too re7 mote or too inconsequential to affect the integrity of

8 the member’s services to the Corporation in that

9 matter. The member involved shall not vote on the

10 determination.

11 ‘‘(4) FINANCIAL DISCLOSURE.—A Board mem12 ber shall be subject to the financial disclosure re13 quirements applicable to a special Government em14 ployee (as defined in section 202(a) of title 18, Unit15 ed States Code).

16 ‘‘(k) DELEGATION OF AUTHORITY.—

17 ‘‘(1) IN GENERAL.—The Corporate Board may,

18 by resolution, delegate to the Chairperson, the Exec19 utive Director, or any other officer or employee any

20 function, power, or duty assigned to the Corporation

21 under this subtitle, other than a function, power, or

22 duty expressly vested in the Corporate Board by

23 subsections (c) through (n).

24 ‘‘(2) PROHIBITION ON DELEGATION.—Notwith25 standing any other law, the Secretary and any other
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1 officer or employee of the United States shall not

2 make any delegation to the Corporate Board, the

3 Chairperson, the Executive Director, or the Corpora4 tion of any power, function, or authority not ex5 pressly authorized by this subtitle, unless the delega6 tion is made pursuant to an authority in law that

7 expressly makes reference to this section.

8 ‘‘(3) REORGANIZATION ACT.—Notwithstanding

9 any other law, the President (through authorities

10 provided under chapter 9, title 5, United States

11 Code) may not authorize the transfer to the Cor12 poration of any power, function, or authority in ad13 dition to powers, functions, and authorities provided

14 by law.

15 ‘‘(l) BYLAWS.—Notwithstanding section 1658(f)(2),

16 the Corporate Board shall adopt, and may from time to

17 time amend, any bylaw that is necessary for the proper

18 management and functioning of the Corporation. The Cor19 porate Board shall not adopt any bylaw that has not been

20 reviewed and approved by the Secretary.

21 ‘‘(m) ORGANIZATION.—The Corporate Board shall

22 provide a system of organization to fix responsibility and

23 promote efficiency.

24 ‘‘(n) PERSONNEL AND FACILITIES OF CORPORA25 TION.—
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1 ‘‘(1) APPOINTMENT AND COMPENSATION OF

2 PERSONNEL.—The Corporation may select and ap3 point officers, attorneys, employees, and agents, who

4 shall be vested with such powers and duties as the

5 Corporation may determine.

6 ‘‘(2) USE OF FACILITIES AND SERVICES OF THE

7 DEPARTMENT OF AGRICULTURE.—Notwithstanding

8 any other provision of law, to perform the respon9 sibilities of the Corporation under this subtitle, the

10 Corporation may partially or jointly utilize the facili11 ties of and the services of employees of the Depart12 ment of Agriculture, without cost to the Corpora13 tion.

14 ‘‘(3) GOVERNMENT EMPLOYMENT LAWS.—An

15 officer or employee of the Corporation shall be sub16 ject to all laws of the United States relating to gov17 ernmental employment.’’.

18 (b) CONFORMING AMENDMENT.—Section 5315 of

19 title V, United States Code, is amended by adding at the

20 end the following:

21 ‘‘Executive Director of the Alternative Agricul22 tural Research and Commercialization Corpora23 tion.’’.
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1 SEC. 724. RESEARCH AND DEVELOPMENT GRANTS, CON2 TRACTS, AND AGREEMENTS.

3 Section 1660 of the Food, Agriculture, Conservation,

4 and Trade Act of 1990 (7 U.S.C. 5904) is amended—

5 (1) by striking ‘‘Center’’ each place it appears

6 and inserting ‘‘Corporation’’;

7 (2) in subsection (c), by striking ‘‘Board’’ and

8 inserting ‘‘Corporate Board’’; and

9 (3) in subsection (f), by striking ‘‘non-Center’’

10 and inserting ‘‘non-Corporation’’.

11 SEC. 725. COMMERCIALIZATION ASSISTANCE.

12 Section 1661 of the Food, Agriculture, Conservation,

13 and Trade Act of 1990 (7 U.S.C. 5905) is amended—

14 (1) by striking ‘‘Center’’ each place it appears

15 and inserting ‘‘Corporation’’;

16 (2) by striking ‘‘Board’’ each place it appears

17 and inserting ‘‘Corporate Board’’;

18 (3) by striking subsection (c);

19 (4) by redesignating subsections (d), (e), and

20 (f) as subsections (c), (d), and (e), respectively; and

21 (5) in subsection (c) (as so redesignated)—

22 (A) in the subsection heading of paragraph

23 (1), by striking ‘‘DIRECTOR’’ and inserting ‘‘EX24 ECUTIVE DIRECTOR’’; and

25 (B) by striking ‘‘Director’’ each place it

26 appears and inserting ‘‘Executive Director’’.
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1 SEC. 726. GENERAL RULES REGARDING THE PROVISION OF

2 ASSISTANCE.

3 Section 1662 of the Food, Agriculture, Conservation,

4 and Trade Act of 1990 (7 U.S.C. 5906) is amended—

5 (1) by striking ‘‘Center’’ each place it appears

6 (except in subsection (b)) and inserting ‘‘Corpora7 tion’’;

8 (2) by striking ‘‘Board’’ each place it appears

9 and inserting ‘‘Corporate Board’’; and

10 (3) in subsection (b)—

11 (A) in the second sentence, by striking

12 ‘‘Board, a Regional Center, or the Advisory

13 Council’’ and inserting ‘‘Board or a Regional

14 Center’’; and

15 (B) by striking the third sentence.

16 SEC. 727. REGIONAL CENTERS.

17 Section 1663 of the Food, Agriculture, Conservation,

18 and Trade Act of 1990 (7 U.S.C. 5907) is amended—

19 (1) by striking ‘‘Board’’ each place it appears

20 and inserting ‘‘Corporate Board’’;

21 (2) in subsection (e)(8), by striking ‘‘Center’’

22 and inserting ‘‘Corporation’’; and

23 (3) in subsection (f)—

24 (A) in paragraph (2), by striking ‘‘in con25 sultation with the Advisory Council appointed

26 under section 1661(c)’’; and
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1 (B) by striking paragraphs (3) and (4) and

2 inserting the following:

3 ‘‘(3) RECOMMENDATION.—The Regional Direc4 tor, based on the comments of the reviewers, shall

5 make and submit a recommendation to the Board.

6 A recommendation submitted by a Regional Director

7 shall not be binding on the Board.’’.

8 SEC. 728. ALTERNATIVE AGRICULTURAL RESEARCH AND

9 COMMERCIALIZATION REVOLVING FUND.

10 Section 1664 of the Food, Agriculture, Conservation,

11 and Trade Act of 1990 (7 U.S.C. 5908) is amended to

12 read as follows:

13 ‘‘SEC. 1664. ALTERNATIVE AGRICULTURAL RESEARCH AND

14 COMMERCIALIZATION REVOLVING FUND.

15 ‘‘(a) ESTABLISHMENT.—There is established in the

16 Treasury of the United States a revolving fund to be

17 known as the Alternative Agricultural Research and Com18 mercialization Revolving Fund. The Fund shall be avail19 able to the Corporation, without fiscal year limitation, to

20 carry out the authorized programs and activities of the

21 Corporation under this subtitle.

22 ‘‘(b) CONTENTS OF FUND.—There shall be deposited

23 in the Fund—
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1 ‘‘(1) such amounts as may be appropriated or

2 transferred to support programs and activities of the

3 Corporation;

4 ‘‘(2) payments received from any source for

5 products, services, or property furnished in connec6 tion with the activities of the Corporation;

7 ‘‘(3) fees and royalties collected by the Corpora8 tion from licensing or other arrangements relating to

9 commercialization of products developed through

10 projects funded in whole or part by grants, con11 tracts, or cooperative agreements executed by the

12 Corporation;

13 ‘‘(4) proceeds from the sale of assets, loans,

14 and equity interests made in furtherance of the pur15 poses of the Corporation;

16 ‘‘(5) donations or contributions accepted by the

17 Corporation to support authorized programs and ac18 tivities; and

19 ‘‘(6) any other funds acquired by the Corpora20 tion.

21 ‘‘(c) FUNDING ALLOCATIONS.—Funding of projects

22 and activities under this subtitle shall be subject to the

23 following restrictions:

24 ‘‘(1) Of the total amount of funds made avail25 able for a fiscal year under this subtitle—
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1 ‘‘(A) not more than the lesser of 15 per2 cent or $3,000,000 may be set aside to be used

3 for authorized administrative expenses of the

4 Corporation in carrying out the functions of the

5 Corporation;

6 ‘‘(B) not more than 1 percent may be set

7 aside to be used for generic studies and specific

8 reviews of individual proposals for financial as9 sistance; and

10 ‘‘(C) except as provided in subsection (e),

11 not less than 84 percent shall be set aside to be

12 awarded to qualified applicants who file project

13 applications with, or respond to requests for

14 proposals from, the Corporation under sections

15 1660 and 1661.

16 ‘‘(2) Any funds remaining uncommitted at the

17 end of a fiscal year shall be credited to the Fund

18 and added to the total program funds available to

19 the Corporation for the next fiscal year.

20 ‘‘(d) AUTHORIZED ADMINISTRATIVE EXPENSES.—

21 For the purposes of this section, authorized administrative

22 expenses shall include all ordinary and necessary expenses,

23 including all compensation for personnel and consultants,

24 expenses for computer usage, or space needs of the Cor25 poration and similar expenses. Funds authorized for ad-
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1 ministrative expenses shall not be available for the acquisi2 tion of real property.

3 ‘‘(e) PROJECT MONITORING.—The Board may estab4 lish, in the bylaws of the Board, a percent of funds pro5 vided under subsection (c), not to exceed 1 percent per

6 project award, for any commercialization project to be ex7 pended from project awards that shall be used to ensure

8 that project funds are being utilized in accordance with

9 the project agreement.

10 ‘‘(f) TERMINATION OF THE FUND.—On expiration of

11 the authority provided by this subtitle, all assets (after

12 payment of all outstanding obligations) of the Fund shall

13 revert to the general fund of the Treasury.

14 ‘‘(g) AUTHORIZATION OF APPROPRIATIONS; CAP15 ITALIZATION.—

16 ‘‘(1) AUTHORIZATION OF APPROPRIATION.—

17 There are authorized to be appropriated to the Fund

18 $75,000,000 for each of fiscal years 1996 through

19 2002.

20 ‘‘(2) CAPITALIZATION.—The Executive Director

21 may pay as capital of the Corporation, from

22 amounts made available through annual appropria23 tions, $75,000,000 for each of fiscal years 1996

24 through 2002. On the payment of capital by the Ex25 ecutive Director, the Corporation shall issue an
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1 equivalent amount of capital stock to the Secretary

2 of the Treasury.

3 ‘‘(3) TRANSFER.—All obligations, assets, and

4 related rights and responsibilities of the Alternative

5 Agricultural Research and Commercialization Center

6 established under section 1658 of the Food, Agri7 culture, Conservation, and Trade Act of 1990 (7

8 U.S.C. 5902) (as in effect on the day before the ef9 fective date of the Agricultural Reform and Improve10 ment Act of 1996) are transferred to the Corpora11 tion.’’.

12 SEC. 729. PROCUREMENT PREFERENCES FOR PRODUCTS

13 RECEIVING CORPORATION ASSISTANCE.

14 Subtitle G of title XVI of the Food, Agriculture, Con15 servation, and Trade Act of 1990 (7 U.S.C. 5901 et seq.)

16 is amended by adding at the end the following:

17 ‘‘SEC. 1665. PROCUREMENT OF ALTERNATIVE AGRICUL18 TURAL RESEARCH AND COMMERCIALIZA19 TION PRODUCTS.

20 ‘‘(a) DEFINITION OF EXECUTIVE AGENCY.—In this

21 section, the term ‘executive agency’ has the meaning pro22 vided the term in section 4(1) of the Office of Federal

23 Procurement Policy Act (41 U.S.C. 403(1)).

24 ‘‘(b) PROCUREMENT.—To further the achievement of

25 the purposes specified in section 1657(b), an executive
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1 agency may, for any procurement involving the acquisition

2 of property, establish set-asides and preferences for prop3 erty that has been commercialized with assistance pro4 vided under this subtitle.

5 ‘‘(c) SET-ASIDES.—Procurements solely for property

6 may be set-aside exclusively for products developed with

7 commercialization assistance provided under section 1661.

8 ‘‘(d) PREFERENCES.—Preferences for property devel9 oped with assistance provided under this subtitle in pro10 curements involving the acquisition of property may be—

11 ‘‘(1) a price preference, if the procurement is

12 solely for property, of not greater than a percentage

13 to be determined within the sole discretion of the

14 head of the procuring agency; or

15 ‘‘(2) a technical evaluation preference included

16 as an award factor or subfactor as determined with17 in the sole discretion of the head of the procuring

18 agency.

19 ‘‘(e) NOTICE.—Each competitive solicitation or invi20 tation for bids selected by an executive agency for a set21 aside or preference under this section shall contain a pro22 vision notifying offerors where a list of products eligible

23 for the set aside or preference may be obtained.

24 ‘‘(f) ELIGIBILITY.—Offerors shall receive the set

25 aside or preference required under this section if, in the
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1 case of products developed with financial assistance

2 under—

3 ‘‘(1) section 1660, less than 10 years have

4 elapsed since the expiration of the grant, cooperative

5 agreement, or contract;

6 ‘‘(2) paragraph (1) or (2) of section 1661(a),

7 less than 5 years have elapsed since the date the

8 loan was made or insured;

9 ‘‘(3) section 1661(a)(3), less than 5 years have

10 elapsed since the date of sale of any remaining gov11 ernment equity interest in the company; or

12 ‘‘(4) section 1661(a)(4), less than 5 years have

13 elapsed since the date of the final payment on the

14 repayable grant.’’.

15 SEC. 730. BUSINESS PLAN AND FEASIBILITY STUDY AND RE16 PORT.

17 (a) BUSINESS PLAN.—Not later than 180 days after

18 the date of enactment of this Act, the Alternative Agricul19 tural Research and Commercialization Corporation estab20 lished under section 1658 of the Food, Agriculture, Con21 servation, and Trade Act of 1990 (7 U.S.C. 5902) shall—

22 (1) develop a 5-year business plan pursuant to

23 section 1659(c)(1)(E) of the Food, Agriculture, Con24 servation, and Trade Act of 1990 (as amended by

25 section 723); and
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1 (2) submit the plan to the Secretary of Agri2 culture, the Committee on Agriculture of the House

3 of Representatives, and the Committee on Agri4 culture, Nutrition, and Forestry of the Senate.

5 (b) FEASIBILITY STUDY AND REPORT.—

6 (1) STUDY.—The Secretary of Agriculture shall

7 conduct a study of and prepare a report on the con8 tinued feasibility of the Alternative Agricultural Re9 search and Commercialization Corporation. In con10 ducting the study, the Secretary shall examine op11 tions for privatizing the Corporation and converting

12 the Corporation to a Government sponsored enter13 prise.

14 (2) REPORT.—Not later than December 31,

15 2001, the Secretary shall transmit the report to the

16 Committee on Agriculture of the House of Rep17 resentatives and the Committee on Agriculture, Nu18 trition, and Forestry of the Senate.
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1 Subtitle B—Amendments to the

2 Consolidated Farm and Rural

3 Development Act

4 CHAPTER 1—GENERAL PROVISIONS

5 SEC. 741. WATER AND WASTE FACILITY LOANS AND

6 GRANTS.

7 (a) IN GENERAL.—Section 306(a) of the Consoli8 dated Farm and Rural Development Act (7 U.S.C.

9 1926(a)) is amended—

10 (1) in the first sentence of paragraph (2), by

11 striking ‘‘$500,000,000’’ and inserting

12 ‘‘$590,000,000’’;

13 (2) by striking paragraph (7) and inserting the

14 following:

15 ‘‘(7) DEFINITION OF RURAL AND RURAL

16 AREAS.—For the purpose of water and waste dis17 posal grants and direct and guaranteed loans pro18 vided under paragraphs (1) and (2), the terms

19 ‘rural’ and ‘rural area’ shall mean a city, town, or

20 unincorporated area that has a population of no

21 more than 10,000 inhabitants.’’;

22 (3) by striking paragraphs (9), (10), and (11)

23 and inserting the following:

24 ‘‘(9) CONFORMITY WITH STATE DRINKING

25 WATER STANDARDS.—No Federal funds shall be
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1 made available under this section unless the Sec2 retary determines that the water system seeking

3 funding will make significant progress toward meet4 ing the standards established under title XIV of the

5 Public Health Service Act (commonly known as the

6 ‘Safe Drinking Water Act’) (42 U.S.C. 300f et seq.).

7 ‘‘(10) CONFORMITY WITH FEDERAL AND STATE

8 WATER POLLUTION CONTROL STANDARDS.—In the

9 case of a water treatment discharge or waste dis10 posal system seeking funding, no Federal funds shall

11 be made available under this section unless the Sec12 retary determines that the effluent from the system

13 conforms with applicable Federal and State water

14 pollution control standards.

15 ‘‘(11) RURAL BUSINESS OPPORTUNITY

16 GRANTS.—

17 ‘‘(A) IN GENERAL.—The Secretary may

18 make grants, not to exceed $1,500,000 annu19 ally, to public bodies, private nonprofit commu20 nity development corporations or entities, or

21 such other agencies as the Secretary may select

22 to enable the recipients—

23 ‘‘(i) to identify and analyze business

24 opportunities, including opportunities in
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1 export markets, that will use local rural

2 economic and human resources;

3 ‘‘(ii) to identify, train, and provide

4 technical assistance to existing or prospec5 tive rural entrepreneurs and managers;

6 ‘‘(iii) to establish business support

7 centers and otherwise assist in the creation

8 of new rural businesses, the development of

9 methods of financing local businesses, and

10 the enhancement of the capacity of local

11 individuals and entities to engage in sound

12 economic activities;

13 ‘‘(iv) to conduct regional, community,

14 and local economic development planning

15 and coordination, and leadership develop16 ment; and

17 ‘‘(v) to establish centers for training,

18 technology, and trade that will provide

19 training to rural businesses in the utiliza20 tion of interactive communications tech21 nologies to develop international trade op22 portunities and markets.

23 ‘‘(B) CRITERIA.—In awarding the grants,

24 the Secretary shall consider, among other cri25 teria to be established by the Secretary—
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1 ‘‘(i) the extent to which the applicant

2 provides development services in the rural

3 service area of the applicant; and

4 ‘‘(ii) the capability of the applicant to

5 carry out the purposes of this section.

6 ‘‘(C) COORDINATION.—The Secretary shall

7 ensure, to the maximum extent practicable, that

8 assistance provided under this paragraph is co9 ordinated with and delivered in cooperation

10 with similar services or assistance provided to

11 rural residents by the Cooperative State Re12 search, Education, and Extension Service or

13 other Federal agencies.

14 ‘‘(D) AUTHORIZATION OF APPROPRIA15 TIONS.—There are authorized to be appro16 priated to carry out this paragraph $7,500,000

17 for each of fiscal years 1996 through 2002.’’;

18 (4) by striking paragraphs (14) and (15); and

19 (5) in paragraph (16)—

20 (A) by striking ‘‘(16)(A) The’’ and insert21 ing the following:

22 ‘‘(16) RURAL WATER AND WASTEWATER TECH23 NICAL ASSISTANCE AND TRAINING PROGRAMS.—

24 ‘‘(A) IN GENERAL.—The’’;

25 (B) in subparagraph (A)—
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1 (i) by striking ‘‘(i) identify’’ and in2 serting the following:

3 ‘‘(i) identify’’;

4 (ii) by striking ‘‘(ii) prepare’’ and in5 serting the following:

6 ‘‘(ii) prepare’’; and

7 (iii) by striking ‘‘(iii) improve’’ and in8 serting the following:

9 ‘‘(iii) improve’’;

10 (C) in subparagraph (B), by striking ‘‘(B)

11 In’’ and inserting the following:

12 ‘‘(B) SELECTION PRIORITY.—In’’; and

13 (D) in subparagraph (C)—

14 (i) by striking ‘‘(C) Not’’ and insert15 ing the following:

16 ‘‘(C) FUNDING.—Not’’; and

17 (ii) by striking ‘‘2 per centum of any

18 funds provided in Appropriations Acts’’

19 and inserting ‘‘3 percent of any funds ap20 propriated’’.

21 (b) CONFORMING AMENDMENTS.—

22 (1) Section 307(a)(6)(B) of the Consolidated

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

24 1927(a)(6)(B)) (as amended by section 651(a)(2)) is

25 further amended—
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1 (A) by striking clause (ii); and

2 (B) by redesignating clauses (iii) and (iv)

3 as clauses (ii) and (iii), respectively.

4 (2) The second sentence of section 309A(a) of

5 the Consolidated Farm and Rural Development Act

6 (7 U.S.C. 1929a(a)) is amended by striking ‘‘,

7 306(a)(14),’’.

8 SEC. 742. EMERGENCY COMMUNITY WATER ASSISTANCE

9 GRANT PROGRAM FOR SMALL COMMUNITIES.

10 Section 306A of the Consolidated Farm and Rural

11 Development Act (7 U.S.C. 1926a) is amended—

12 (1) in subsection (e)—

13 (A) by striking paragraph (1) and insert14 ing the following:

15 ‘‘(1) MAXIMUM INCOME.—No grant provided

16 under this section may be used to assist any rural

17 area or community that has a median household in18 come in excess of the State nonmetropolitan median

19 household income according to the most recent de20 cennial census of the United States.’’; and

21 (B) in paragraph (2), by striking ‘‘5,000’’

22 and inserting ‘‘3,000’’; and

23 (2) by striking subsection (i) and inserting the

24 following:
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1 ‘‘(i) AUTHORIZATION OF APPROPRIATIONS.—There

2 are authorized to be appropriated to carry out this section

3 $35,000,000 for each of fiscal years 1996 through 2002.’’.

4 SEC. 743. EMERGENCY COMMUNITY WATER ASSISTANCE

5 GRANT PROGRAM FOR SMALLEST COMMU6 NITIES.

7 Section 306B of the Consolidated Farm and Rural

8 Development Act (7 U.S.C. 1926b) is repealed.

9 SEC. 744. AGRICULTURAL CREDIT INSURANCE FUND.

10 Section 309(f) of the Consolidated Farm and Rural

11 Development Act (7 U.S.C. 1929(f)) is amended—

12 (1) by striking paragraph (1); and

13 (2) by redesignating paragraphs (2) through

14 (6) as paragraphs (1) through (5), respectively.

15 SEC. 745. RURAL DEVELOPMENT INSURANCE FUND.

16 Section 309A(g) of the Consolidated Farm and Rural

17 Development Act (7 U.S.C. 1929a(g)) is amended—

18 (1) by striking paragraph (1); and

19 (2) by redesignating paragraphs (2) through

20 (8) as paragraphs (1) through (7), respectively.

21 SEC. 746. INSURED WATERSHED AND RESOURCE CON22 SERVATION AND DEVELOPMENT LOANS.

23 Section 310A of the Consolidated Farm and Rural

24 Development Act (7 U.S.C. 1931) is repealed.
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1 SEC. 747. RURAL INDUSTRIALIZATION ASSISTANCE.

2 (a) IN GENERAL.—Section 310B of the Consolidated

3 Farm and Rural Development Act (7 U.S.C. 1932) is

4 amended—

5 (1) in subsection (b), by striking ‘‘(b)(1)’’ and

6 all that follows through ‘‘(2) The’’ and inserting the

7 following:

8 ‘‘(b) SOLID WASTE MANAGEMENT GRANTS.—The’’;

9 (2) in subsection (c)—

10 (A) by striking ‘‘(c)(1) The’’ and inserting

11 the following:

12 ‘‘(c) RURAL BUSINESS ENTERPRISE GRANTS.—

13 ‘‘(1) IN GENERAL.—The’’;

14 (B) in paragraph (1), by inserting ‘‘(in15 cluding nonprofit entities)’’ after ‘‘private busi16 ness enterprises’’; and

17 (C) in paragraph (2)—

18 (i) by striking ‘‘(2) The’’ and insert19 ing the following:

20 ‘‘(2) PASSENGER TRANSPORTATION SERVICES

21 OR FACILITIES.—The’’; and

22 (ii) by striking ‘‘make grants’’ and in23 serting ‘‘award grants on a competitive

24 basis’’; and

25 (3) by striking subsections (e), (g), (h), and (i);
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1 (4) by redesignating subsections (f) and (j) as

2 subsections (e) and (f), respectively;

3 (5) by striking subsection (e) (as so redesig4 nated) and inserting the following:

5 ‘‘(e) RURAL COOPERATIVE DEVELOPMENT

6 GRANTS.—

7 ‘‘(1) DEFINITIONS.—In this subsection:

8 ‘‘(A) NONPROFIT INSTITUTION.—The term

9 ‘nonprofit institution’ means any organization

10 or institution, including an accredited institu11 tion of higher education, no part of the net

12 earnings of which inures, or may lawfully inure,

13 to the benefit of any private shareholder or in14 dividual.

15 ‘‘(B) UNITED STATES.—The term ‘United

16 States’ means the several States, the District of

17 Columbia, the Commonwealth of Puerto Rico,

18 the Virgin Islands, Guam, American Samoa,

19 and the other territories and possessions of the

20 United States.

21 ‘‘(2) GRANTS.—The Secretary shall make

22 grants under this subsection to nonprofit institutions

23 for the purpose of enabling the institutions to estab24 lish and operate centers for rural cooperative devel25 opment.
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1 ‘‘(3) GOALS.—The goals of a center funded

2 under this subsection shall be to facilitate the cre3 ation of jobs in rural areas through the development

4 of new rural cooperatives, value added processing,

5 and rural businesses.

6 ‘‘(4) APPLICATION.—Any nonprofit institution

7 seeking a grant under paragraph (2) shall submit to

8 the Secretary an application containing a plan for

9 the establishment and operation by the institution of

10 a center or centers for cooperative development. The

11 Secretary may approve the application if the plan

12 contains the following:

13 ‘‘(A) A provision that substantiates that

14 the center will effectively serve rural areas in

15 the United States.

16 ‘‘(B) A provision that the primary objec17 tive of the center will be to improve the eco18 nomic condition of rural areas through coopera19 tive development.

20 ‘‘(C) A description of the activities that the

21 center will carry out to accomplish the objec22 tive. The activities may include the following:

23 ‘‘(i) Programs for applied research

24 and feasibility studies that may be useful

25 to individuals, cooperatives, small busi-
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1 nesses, and other similar entities in rural

2 areas served by the center.

3 ‘‘(ii) Programs for the collection, in4 terpretation, and dissemination of informa5 tion that may be useful to individuals, co6 operatives, small businesses, and other

7 similar entities in rural areas served by the

8 center.

9 ‘‘(iii) Programs providing training and

10 instruction for individuals, cooperatives,

11 small businesses, and other similar entities

12 in rural areas served by the center.

13 ‘‘(iv) Programs providing loans and

14 grants to individuals, cooperatives, small

15 businesses, and other similar entities in

16 rural areas served by the center.

17 ‘‘(v) Programs providing technical as18 sistance, research services, and advisory

19 services to individuals, cooperatives, small

20 businesses, and other similar entities in

21 rural areas served by the center.

22 ‘‘(vi) Programs providing for the co23 ordination of services and sharing of infor24 mation among the center.
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1 ‘‘(D) A description of the contributions

2 that the activities are likely to make to the im3 provement of the economic conditions of the

4 rural areas for which the center will provide

5 services.

6 ‘‘(E) Provisions that the center, in carry7 ing out the activities, will seek, where appro8 priate, the advice, participation, expertise, and

9 assistance of representatives of business, indus10 try, educational institutions, the Federal Gov11 ernment, and State and local governments.

12 ‘‘(F) Provisions that the center will take

13 all practicable steps to develop continuing

14 sources of financial support for the center, par15 ticularly from sources in the private sector.

16 ‘‘(G) Provisions for—

17 ‘‘(i) monitoring and evaluating the ac18 tivities by the nonprofit institution operat19 ing the center; and

20 ‘‘(ii) accounting for money received by

21 the institution under this section.

22 ‘‘(5) AWARDING GRANTS.—Grants made under

23 paragraph (2) shall be made on a competitive basis.

24 In making grants under paragraph (2), the Sec25 retary shall give preference to grant applications
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1 providing for the establishment of centers for rural

2 cooperative development that—

3 ‘‘(A) demonstrate a proven track record in

4 administering a nationally coordinated, region5 ally or State-wide operated project;

6 ‘‘(B) demonstrate previous expertise in

7 providing technical assistance in rural areas;

8 ‘‘(C) demonstrate the ability to assist in

9 the retention of existing businesses, facilitate

10 the establishment of new cooperatives and new

11 cooperative approaches, and generate new em12 ployment opportunities that will improve the

13 economic conditions of rural areas;

14 ‘‘(D) demonstrate the ability to create hor15 izontal linkages among businesses within and

16 among various sectors in rural America and

17 vertical linkages to domestic and international

18 markets;

19 ‘‘(E) commit to providing technical assist20 ance and other services to underserved and eco21 nomically distressed areas in rural America;

22 and

23 ‘‘(F) commit to providing greater than a

24 25 percent matching contribution with private

25 funds and in-kind contributions.
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1 ‘‘(6) TWO-YEAR GRANTS.—The Secretary shall

2 evaluate programs receiving assistance under this

3 subsection and, if the Secretary determines it to be

4 in the best interest of the Federal Government, the

5 Secretary may approve grants under this subsection

6 for up to 2 years.

7 ‘‘(7) TECHNICAL ASSISTANCE TO PREVENT EX8 CESSIVE UNEMPLOYMENT OR UNDEREMPLOY9 MENT.—In carrying out this subsection, the Sec10 retary may provide technical assistance to alleviate

11 or prevent conditions of excessive unemployment,

12 underemployment, outmigration, or low employment

13 growth in economically distressed rural areas that

14 the Secretary determines have a substantial need for

15 the assistance. The assistance may include planning

16 and feasibility studies, management and operational

17 assistance, and studies evaluating the need for devel18 opment potential of projects that increase employ19 ment and improve economic growth in the areas.

20 ‘‘(8) GRANTS TO DEFRAY ADMINISTRATIVE

21 COSTS.—The Secretary may make grants to defray

22 not to exceed 75 percent of the costs incurred by or23 ganizations and public bodies to carry out projects

24 for which grants or loans are made under this sub25 section. For purposes of determining the non-Fed-
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1 eral share of the costs, the Secretary shall consider

2 contributions in cash and in kind, fairly evaluated,

3 including premises, equipment, and services.

4 ‘‘(9) AUTHORIZATION OF APPROPRIATIONS.—

5 There are authorized to be appropriated to carry out

6 this subsection $50,000,000 for each of fiscal years

7 1996 through 2002.’’; and

8 (6) by adding at the end the following:

9 ‘‘(g) LOAN GUARANTEES FOR THE PURCHASE OF

10 COOPERATIVE STOCK.—

11 ‘‘(1) DEFINITION OF FARMER.—In this sub12 section, the term ‘farmer’ means any farmer that

13 meets the family farmer definition, as determined by

14 the Secretary.

15 ‘‘(2) LOAN GUARANTEES.—The Secretary may

16 guarantee loans under this section to individual

17 farmers for the purpose of purchasing capital stock

18 of a farmer cooperative established for the purpose

19 of processing an agricultural commodity.

20 ‘‘(3) ELIGIBILITY.—To be eligible for a loan

21 guarantee under this subsection, a farmer must

22 produce the agricultural commodity that will be

23 processed by the cooperative.

24 ‘‘(4) COLLATERAL.—To be eligible for a loan

25 guarantee under this subsection for the establish-
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1 ment of a cooperative, the borrower of the loan must

2 pledge collateral to secure at least 25 percent of the

3 amount of the loan.’’.

4 (b) CONFORMING AMENDMENTS.—

5 (1) Clause (iii) of section 307(a)(6)(B) of the

6 Consolidated Farm and Rural Development Act (7

7 U.S.C. 1927(a)(6)(B)) (as redesignated by section

8 741(b)(1)(B)) is amended by striking ‘‘subsections

9 (d) and (e) of section 310B’’ and inserting ‘‘section

10 310B(d)’’.

11 (2) Section 232(c)(2) of the Department of Ag12 riculture Reorganization Act of 1994 (7 U.S.C.

13 6942(c)(2)) is amended—

14 (A) by striking ‘‘310B(b)(2)’’ and insert15 ing ‘‘310B(b)’’; and

16 (B) by striking ‘‘1932(b)(2)’’ and inserting

17 ‘‘1932(b)’’.

18 (3) Section 233(b) of the Department of Agri19 culture Reorganization Act of 1994 (7 U.S.C.

20 6943(b)) is amended—

21 (A) by striking paragraph (2); and

22 (B) by redesignating paragraph (3) as

23 paragraph (2).
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1 SEC. 748. ADMINISTRATION.

2 Section 331(b)(4) of the Consolidated Farm and

3 Rural Development Act (7 U.S.C. 1981(b)(4)) is amend4 ed—

5 (1) by inserting after ‘‘claims’’ the following:

6 ‘‘(including debts and claims arising from loan guar7 antees)’’;

8 (2) by striking ‘‘Farmers Home Administration

9 or’’ and inserting ‘‘Consolidated Farm Service Agen10 cy, Rural Utilities Service, Rural Housing and Com11 munity Development Service, Rural Business and

12 Cooperative Development Service, or a successor

13 agency, or’’; and

14 (3) by inserting after ‘‘activities under the

15 Housing Act of 1949.’’ the following: ‘‘In the case

16 of a security instrument entered into under the

17 Rural Electrification Act of 1936 (7 U.S.C. 901 et

18 seq.), the Secretary shall notify the Attorney General

19 of the intent of the Secretary to exercise the author20 ity of the Secretary under this paragraph.’’.

21 SEC. 749. AUTHORIZATION OF APPROPRIATIONS.

22 (a) IN GENERAL.—Section 338 of the Consolidated

23 Farm and Rural Development Act (7 U.S.C. 1988) is

24 amended—

25 (1) by striking subsections (b), (c), (d), and (e);

26 and
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1 (2) by redesignating subsection (f) as sub2 section (b).

3 (b) CONFORMING AMENDMENTS.—

4 (1) The first sentence of section 309(g)(1) of

5 the Consolidated Farm and Rural Development Act

6 (7 U.S.C. 1929(g)(1)) is amended by inserting after

7 ‘‘section 338(c)’’ the following: ‘‘(before the amend8 ment made by section 447(a)(1) of the Agricultural

9 Reform and Improvement Act of 1996)’’.

10 (2) Section 343(b) of the Consolidated Farm

11 and Rural Development Act (7 U.S.C. 1991(b)) is

12 amended by striking ‘‘338(f),’’ and inserting

13 ‘‘338(b),’’.

14 SEC. 750. TESTIMONY BEFORE CONGRESSIONAL COMMIT15 TEES.

16 Section 345 of the Consolidated Farm and Rural De17 velopment Act (7 U.S.C. 1993) is repealed.

18 SEC. 751. PROHIBITION ON USE OF LOANS FOR CERTAIN

19 PURPOSES.

20 Section 363 of the Consolidated Farm and Rural De21 velopment Act (7 U.S.C. 2006e) is amended by adding at

22 the end the following: ‘‘This section shall not apply to a

23 loan made or guaranteed under this title for a utility

24 line.’’.
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1 SEC. 752. RURAL DEVELOPMENT CERTIFIED LENDERS PRO2 GRAM.

3 The Consolidated Farm and Rural Development Act

4 is amended by inserting after section 363 (7 U.S.C.

5 2006e) the following:

6 ‘‘SEC. 364. RURAL DEVELOPMENT CERTIFIED LENDERS

7 PROGRAM.

8 ‘‘(a) CERTIFIED LENDERS PROGRAM.—

9 ‘‘(1) IN GENERAL.—The Secretary may estab10 lish a program under which the Secretary may guar11 antee a loan for any rural development program that

12 is made by a lender certified by the Secretary.

13 ‘‘(2) CERTIFICATION REQUIREMENTS.—The

14 Secretary may certify a lender if the lender meets

15 such criteria as the Secretary may prescribe in regu16 lations, including the ability of the lender to properly

17 make, service, and liquidate the guaranteed loans of

18 the lender.

19 ‘‘(3) CONDITION OF CERTIFICATION.—As a

20 condition of certification, the Secretary may require

21 the lender to undertake to service the guaranteed

22 loan using standards that are not less stringent than

23 generally accepted banking standards concerning

24 loan servicing that are used by prudent commercial

25 or cooperative lenders.
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1 ‘‘(4) GUARANTEE.—Notwithstanding any other

2 provision of law, the Secretary may guarantee not

3 more than 80 percent of a loan made by a certified

4 lender described in paragraph (1), if the borrower of

5 the loan meets the eligibility requirements and such

6 other criteria for the loan guarantee that are estab7 lished by the Secretary.

8 ‘‘(5) CERTIFICATIONS.—With respect to loans

9 to be guaranteed, the Secretary may permit a cer10 tified lender to make appropriate certifications (as

11 provided in regulations issued by the Secretary) —

12 ‘‘(A) relating to issues such as credit13 worthiness, repayment ability, adequacy of col14 lateral, and feasibility of the operation; and

15 ‘‘(B) that the borrower is in compliance

16 with all requirements of law, including regula17 tions issued by the Secretary.

18 ‘‘(6) RELATIONSHIP TO OTHER REQUIRE19 MENTS.—This subsection shall not affect the respon20 sibility of the Secretary to determine eligibility, re21 view financial information, and otherwise assess an

22 application.

23 ‘‘(b) PREFERRED CERTIFIED LENDERS PROGRAM.—
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1 ‘‘(1) IN GENERAL.—The Secretary may estab2 lish a preferred certified lenders program for lenders

3 who establish their—

4 ‘‘(A) knowledge of, and experience under,

5 the program established under subsection (a);

6 ‘‘(B) knowledge of the regulations concern7 ing the particular guaranteed loan program;

8 and

9 ‘‘(C) proficiency related to the certified

10 lender program requirements.

11 ‘‘(2) ADDITIONAL LENDING INSTITUTIONS.—

12 The Secretary may certify any lending institution as

13 a preferred certified lender if the institution meets

14 such additional criteria as the Secretary may pre15 scribe by regulation.

16 ‘‘(3) REVOCATION OF DESIGNATION.—The des17 ignation of a lender as a preferred certified lender

18 shall be revoked if the Secretary determines that the

19 lender is not adhering to the rules and regulations

20 applicable to the program or if the loss experiences

21 of a preferred certified lender are greater than other

22 preferred certified lenders, except that the suspen23 sion or revocation shall not affect any outstanding

24 guarantee.
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1 ‘‘(4) CONDITION OF CERTIFICATION.—As a

2 condition of the preferred certification, the Secretary

3 shall require the lender to undertake to service the

4 loan guaranteed by the Secretary under this sub5 section using generally accepted banking standards

6 concerning loan servicing employed by prudent com7 mercial or cooperative lenders. The Secretary shall,

8 at least annually, monitor the performance of each

9 preferred certified lender to ensure that the condi10 tions of the certification are being met.

11 ‘‘(5) EFFECT OF PREFERRED LENDER CERTIFI12 CATION.—Notwithstanding any other provision of

13 law, the Secretary may—

14 ‘‘(A) guarantee not more than 80 percent

15 of any approved loan made by a preferred cer16 tified lender as described in this subsection, if

17 the borrower meets the eligibility requirements

18 and such other criteria as may be applicable to

19 loans guaranteed by the Secretary; and

20 ‘‘(B) permit preferred certified lenders to

21 make all decisions, with respect to loans to be

22 guaranteed by the Secretary under this sub23 section relating to creditworthiness, the closing,

24 monitoring, collection, and liquidation of loans,

25 and to accept appropriate certifications, as pro-
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1 vided in regulations issued by the Secretary,

2 that the borrower is in compliance with all re3 quirements of law and regulations issued by the

4 Secretary.’’.

5 SEC. 753. SYSTEM FOR DELIVERY OF CERTAIN RURAL DE6 VELOPMENT PROGRAMS.

7 (a) IN GENERAL.—Section 365 of the Consolidated

8 Farm and Rural Development Act (7 U.S.C. 2008) is re9 pealed.

10 (b) CONFORMING AMENDMENTS.—

11 (1) Section 2310 of the Food, Agriculture, Con12 servation, and Trade Act of 1990 (7 U.S.C. 2007)

13 is amended—

14 (A) in subsection (a), by striking ‘‘or the

15 program established in sections 365 and 366 of

16 the Consolidated Farm and Rural Development

17 Act (as added by chapter 3 of this subtitle)’’;

18 (B) in subsection (b)—

19 (i) by striking ‘‘STATES.—’’ and all

20 that follows through ‘‘PARTNERSHIPS.—

21 The’’ in paragraph (1) and inserting

22 ‘‘STATES.—The’’; and

23 (ii) by striking paragraph (2);

24 (C) in subsection (c)—
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1 (i) by striking ‘‘PROJECTS.—’’ and all

2 that follows through ‘‘PARTNERSHIPS.—

3 Chapter’’ in paragraph (1) and inserting

4 ‘‘PROJECTS.—Chapter’’;

5 (ii) by striking ‘‘subsection (b)(1)’’

6 and inserting ‘‘subsection (b)’’; and

7 (iii) by striking paragraph (2); and

8 (D) in subsection (d), by striking ‘‘and sec9 tions 365, 366, 367, and 368(b) of the Consoli10 dated Farm and Rural Development Act (as

11 added by chapter 3 of this subtitle)’’.

12 (2) Section 2375 of the Food, Agriculture, Con13 servation, and Trade Act of 1990 (7 U.S.C. 6613)

14 is amended—

15 (A) in subsection (e), by striking ‘‘, as de16 fined in section 365(b)(2) of the Consolidated

17 Farm and Rural Development Act,’’; and

18 (B) by adding at the end the following:

19 ‘‘(g) DEFINITION OF DESIGNATED RURAL DEVELOP20 MENT PROGRAM.—In this section, the term ‘designated

21 rural development program’ means a program carried out

22 under section 304(b), 306(a), or 310B(e) of the Consoli23 dated Farm and Rural Development Act (7 U.S.C.

24 1924(b), 1926(a), and 1932(e)), or under section 1323 of

25 the Food Security Act of 1985 (Public Law 99–198; 7
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1 U.S.C. 1932 note), for which funds are available at any

2 time during the fiscal year under the section.’’.

3 (3) Paragraph (2) of section 233(b) of the De4 partment of Agriculture Reorganization Act of 1994

5 (7 U.S.C. 6943(b)) (as redesignated by section

6 747(b)(3)(B)) is amended by striking ‘‘sections 365

7 through 369 of the Consolidated Farm and Rural

8 Development Act (7 U.S.C. 2008-2008d)’’ and in9 serting ‘‘section 369 of the Consolidated Farm and

10 Rural Development Act (7 U.S.C. 2008d)’’.

11 SEC. 754. STATE RURAL ECONOMIC DEVELOPMENT REVIEW

12 PANEL.

13 Section 366 of the Consolidated Farm and Rural De14 velopment Act (7 U.S.C. 2008a) is repealed.

15 SEC. 755. LIMITED TRANSFER AUTHORITY OF LOAN

16 AMOUNTS.

17 Section 367 of the Consolidated Farm and Rural De18 velopment Act (7 U.S.C. 2008b) is repealed.

19 SEC. 756. ALLOCATION AND TRANSFER OF LOAN GUARAN20 TEE AUTHORITY.

21 Section 368 of the Consolidated Farm and Rural De22 velopment Act (7 U.S.C. 2008c) is repealed.
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1 SEC. 757. NATIONAL SHEEP INDUSTRY IMPROVEMENT CEN2 TER.

3 The Consolidated Farm and Rural Development Act

4 (as amended by section 641) is amended by adding at the

5 end the following:

6 ‘‘SEC. 375. NATIONAL SHEEP INDUSTRY IMPROVEMENT

7 CENTER.

8 ‘‘(a) DEFINITIONS.—In this section:

9 ‘‘(1) BOARD.—The term ‘Board’ means the

10 Board of Directors established under subsection (f).

11 ‘‘(2) CENTER.—The term ‘Center’ means the

12 National Sheep Industry Improvement Center estab13 lished under subsection (b).

14 ‘‘(3) ELIGIBLE ENTITY.—The term ‘eligible en15 tity’ means an entity that promotes the betterment

16 of the United States lamb or wool industry and that

17 is—

18 ‘‘(A) a public, private, or cooperative orga19 nization;

20 ‘‘(B) an association, including a corpora21 tion not operated for profit;

22 ‘‘(C) a federally recognized Indian Tribe;

23 or

24 ‘‘(D) a public or quasi-public agency.
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1 ‘‘(4) FUND.—The term ‘Fund’ means the Nat2 ural Sheep Improvement Center Revolving Fund es3 tablished under subsection (e).

4 ‘‘(b) ESTABLISHMENT OF CENTER.—The Secretary

5 shall establish a National Sheep Industry Improvement

6 Center.

7 ‘‘(c) PURPOSES.—The purposes of the Center shall

8 be to—

9 ‘‘(1) promote strategic development activities

10 and collaborative efforts by private and State enti11 ties to maximize the impact of Federal assistance to

12 strengthen and enhance the production and market13 ing of lamb and wool in the United States;

14 ‘‘(2) optimize the use of available human cap15 ital and resources within the sheep industry;

16 ‘‘(3) provide assistance to meet the needs of the

17 sheep industry for infrastructure development, busi18 ness development, production, resource development,

19 and market and environmental research;

20 ‘‘(4) advance activities that empower and build

21 the capacity of the United States sheep industry to

22 design unique responses to the special needs of the

23 lamb and wool industries on both a regional and na24 tional basis; and
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1 ‘‘(5) adopt flexible and innovative approaches to

2 solving the long-term needs of the United States

3 sheep industry.

4 ‘‘(d) STRATEGIC PLAN.—

5 ‘‘(1) IN GENERAL.—The Center shall submit to

6 the Secretary an annual strategic plan for the deliv7 ery of financial assistance provided by the Center.

8 ‘‘(2) REQUIREMENTS.—A strategic plan shall

9 identify—

10 ‘‘(A) goals, methods, and a benchmark for

11 measuring the success of carrying out the plan

12 and how the plan relates to the national and re13 gional goals of the Center;

14 ‘‘(B) the amount and sources of Federal

15 and non-Federal funds that are available for

16 carrying out the plan;

17 ‘‘(C) funding priorities;

18 ‘‘(D) selection criteria for funding; and

19 ‘‘(E) a method of distributing funding.

20 ‘‘(e) REVOLVING FUND.—

21 ‘‘(1) ESTABLISHMENT.—There is established in

22 the Treasury the Natural Sheep Improvement Cen23 ter Revolving Fund. The Fund shall be available to

24 the Center, without fiscal year limitation, to carry
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1 out the authorized programs and activities of the

2 Center under this section.

3 ‘‘(2) CONTENTS OF FUND.—There shall be de4 posited in the Fund—

5 ‘‘(A) such amounts as may be appro6 priated, transferred, or otherwise made avail7 able to support programs and activities of the

8 Center;

9 ‘‘(B) payments received from any source

10 for products, services, or property furnished in

11 connection with the activities of the Center;

12 ‘‘(C) fees and royalties collected by the

13 Center from licensing or other arrangements re14 lating to commercialization of products devel15 oped through projects funded, in whole or part,

16 by grants, contracts, or cooperative agreements

17 executed by the Center;

18 ‘‘(D) proceeds from the sale of assets,

19 loans, and equity interests made in furtherance

20 of the purposes of the Center;;

21 ‘‘(E) donations or contributions accepted

22 by the Center to support authorized programs

23 and activities; and

24 ‘‘(F) any other funds acquired by the Cen25 ter.
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1 ‘‘(3) USE OF FUND.—

2 ‘‘(A) IN GENERAL.—The Center may use

3 amounts in the Fund to make grants and loans

4 to eligible entities in accordance with a strategic

5 plan submitted under subsection (d).

6 ‘‘(B) CONTINUED EXISTENCE.—The Cen7 ter shall manage the Fund in a manner that

8 ensures that sufficient amounts are available in

9 the Fund to carry out subsection (c).

10 ‘‘(C) DIVERSE AREA.—The Center shall, to

11 the maximum extent practicable, use the Fund

12 to serve broad geographic areas and regions of

13 diverse production.

14 ‘‘(D) VARIETY OF LOANS AND GRANTS.—

15 The Center shall, to the maximum extent prac16 ticable, use the Fund to provide a variety of

17 intermediate- and long-term grants and loans.

18 ‘‘(E) ADMINISTRATION.—The Center may

19 not use more than 3 percent of the amounts in

20 the Fund for a fiscal year for the administra21 tion of the Center.

22 ‘‘(F) INFLUENCING LEGISLATION.—None

23 of the amounts in the Fund may be used to in24 fluence legislation.
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1 ‘‘(G) ACCOUNTING.—To be eligible to re2 ceive amounts from the Fund, an entity must

3 agree to account for the amounts using gen4 erally accepted accounting principles.

5 ‘‘(H) USES OF FUND.—The Center may

6 use amounts in the Fund to—

7 ‘‘(i) participate with Federal and

8 State agencies in financing activities that

9 are in accordance with a strategic plan

10 submitted under subsection (d), including

11 participation with several States in a re12 gional effort;

13 ‘‘(ii) participate with other public and

14 private funding sources in financing activi15 ties that are in accordance with the strate16 gic plan, including participation in a re17 gional effort;

18 ‘‘(iii) provide security for, or make

19 principle or interest payments on, revenue

20 or general obligation bonds issued by a

21 State, if the proceeds from the sale of the

22 bonds are deposited in the Fund;

23 ‘‘(iv) accrue interest;

24 ‘‘(v) guarantee or purchase insurance

25 for local obligations to improve credit mar-
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1 ket access or reduce interest rates for a

2 project that is in accordance with the stra3 tegic plan; or

4 ‘‘(vi) sell assets, loans, and equity in5 terests acquired in connection with the fi6 nancing of projects funded by the Center.

7 ‘‘(4) LOANS.—

8 ‘‘(A) RATE.—A loan from the Fund may

9 be made at an interest rate that is below the

10 market rate or may be interest free.

11 ‘‘(B) TERM.—The term of a loan may not

12 exceed the shorter of—

13 ‘‘(i) the useful life of the activity fi14 nanced; or

15 ‘‘(ii) 40 years.

16 ‘‘(C) SOURCE OF REPAYMENT.—The Cen17 ter may not make a loan from the Fund unless

18 the recipient establishes an assured source of

19 repayment.

20 ‘‘(D) PROCEEDS.—All payments of prin21 cipal and interest on a loan made from the

22 Fund shall be deposited into the Fund.

23 ‘‘(5) MAINTENANCE OF EFFORT.—The Center

24 shall use the Fund only to supplement and not to
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1 supplant Federal, State, and private funds expended

2 for rural development.

3 ‘‘(6) FUNDING.—

4 ‘‘(A) DEPOSIT OF FUNDS.—All Federal

5 and non-Federal amounts received by the Cen6 ter to carry out this section shall be deposited

7 in the Fund.

8 ‘‘(B) MANDATORY FUNDS.—Out of any

9 moneys in the Treasury not otherwise appro10 priated, the Secretary of the Treasury shall

11 provide to the Center not to exceed

12 $20,000,000 to carry out this section.

13 ‘‘(C) ADDITIONAL FUNDS.—In addition to

14 any funds provided under subparagraph (B),

15 there is authorized to be appropriated to carry

16 out this section $30,000,000 to carry out this

17 section.

18 ‘‘(D) PRIVATIZATION.—Federal funds shall

19 not be used to carry out this section beginning

20 on the earlier of—

21 ‘‘(i) the date that is 10 years after the

22 effective date of this section; or

23 ‘‘(ii) the day after a total of

24 $50,000,000 is made available under sub-
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1 paragraphs (B) and (C) to carry out this

2 section.

3 ‘‘(f) BOARD OF DIRECTORS.—

4 ‘‘(1) IN GENERAL.—The management of the

5 Center shall be vested in a Board of Directors.

6 ‘‘(2) POWERS.—The Board shall—

7 ‘‘(A) be responsible for the general super8 vision of the Center;

9 ‘‘(B) review any grant, loan, contract, or

10 cooperative agreement to be made or entered

11 into by the Center and any financial assistance

12 provided to the Center;

13 ‘‘(C) make the final decision, by majority

14 vote, on whether and how to provide assistance

15 to an applicant; and

16 ‘‘(D) develop and establish a budget plan

17 and a long-term operating plan to carry out the

18 goals of the Center.

19 ‘‘(3) COMPOSITION.—The Board shall be com20 posed of—

21 ‘‘(A) 7 voting members, of whom—

22 ‘‘(i) 4 members shall be active produc23 ers of sheep in the United States;

24 ‘‘(ii) 2 members shall have expertise

25 in finance and management; and
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1 ‘‘(iii) 1 member shall have expertise in

2 lamb and wool marketing; and

3 ‘‘(B) 2 nonvoting members, of whom—

4 ‘‘(i) 1 member shall be the Under Sec5 retary of Agriculture for Rural Economic

6 and Community Development; and

7 ‘‘(ii) 1 member shall be the Under

8 Secretary of Agriculture for Research,

9 Education, and Economics.

10 ‘‘(4) ELECTION.—A voting member of the

11 Board shall be chosen in an election of the members

12 of a national organization selected by the Secretary

13 that—

14 ‘‘(A) consists only of sheep producers in

15 the United States; and

16 ‘‘(B) has as the primary interest of the or17 ganization the production of lamb and wool in

18 the United States.

19 ‘‘(5) TERM OF OFFICE.—

20 ‘‘(A) IN GENERAL.—Subject to subpara21 graph (B), the term of office of a voting mem22 ber of the Board shall be 3 years.

23 ‘‘(B) STAGGERED INITIAL TERMS.—The

24 initial voting members of the Board (other than

25 the chairperson of the initially established
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1 Board) shall serve for staggered terms of 1, 2,

2 and 3 years, as determined by the Secretary.

3 ‘‘(C) REELECTION.—A voting member may

4 be reelected for not more than 1 additional

5 term.

6 ‘‘(6) VACANCY.—

7 ‘‘(A) IN GENERAL.—A vacancy on the

8 Board shall be filled in the same manner as the

9 original Board.

10 ‘‘(B) REELECTION.—A member elected to

11 fill a vacancy for an unexpired term may be re12 elected for 1 full term.

13 ‘‘(7) CHAIRPERSON.—

14 ‘‘(A) IN GENERAL.—The Board shall select

15 a chairperson from among the voting members

16 of the Board.

17 ‘‘(B) TERM.—The term of office of the

18 chairperson shall be 2 years.

19 ‘‘(8) ANNUAL MEETING.—

20 ‘‘(A) IN GENERAL.—The Board shall meet

21 not less than once each fiscal year at the call

22 of the chairperson or at the request of the exec23 utive director appointed under subsection

24 (g)(1).
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1 ‘‘(B) LOCATION.—The location of a meet2 ing of the Board shall be established by the

3 Board.

4 ‘‘(9) VOTING.—

5 ‘‘(A) QUORUM.—A quorum of the Board

6 shall consist of a majority of the voting mem7 bers.

8 ‘‘(B) MAJORITY VOTE.—A decision of the

9 Board shall be made by a majority of the voting

10 members of the Board.

11 ‘‘(10) CONFLICTS OF INTEREST.—

12 ‘‘(A) IN GENERAL.—A member of the

13 Board shall not vote on any matter respecting

14 any application, contract, claim, or other par15 ticular matter pending before the Board in

16 which, to the knowledge of the member, an in17 terest is held by—

18 ‘‘(i) the member;

19 ‘‘(ii) any spouse of the member;

20 ‘‘(iii) any child of the member;

21 ‘‘(iv) any partner of the member;

22 ‘‘(v) any organization in which the

23 member is serving as an officer, director,

24 trustee, partner, or employee; or
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1 ‘‘(vi) any person with whom the mem2 ber is negotiating or has any arrangement

3 concerning prospective employment or with

4 whom the member has a financial interest.

5 ‘‘(B) REMOVAL.—Any action by a member

6 of the Board that violates subparagraph (A)

7 shall be cause for removal from the Board.

8 ‘‘(C) VALIDITY OF ACTION.—An action by

9 a member of the Board that violates subpara10 graph (A) shall not impair or otherwise affect

11 the validity of any otherwise lawful action by

12 the Board.

13 ‘‘(D) DISCLOSURE.—

14 ‘‘(i) IN GENERAL.—If a member of

15 the Board makes a full disclosure of an in16 terest and, prior to any participation by

17 the member, the Board determines, by ma18 jority vote, that the interest is too remote

19 or too inconsequential to affect the integ20 rity of any participation by the member,

21 the member may participate in the matter

22 relating to the interest.

23 ‘‘(ii) VOTE.—A member that discloses

24 an interest under clause (i) shall not vote

25 on a determination of whether the member
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1 may participate in the matter relating to

2 the interest.

3 ‘‘(E) REMANDS.—

4 ‘‘(i) IN GENERAL.—The Secretary

5 may vacate and remand to the Board for

6 reconsideration any decision made pursu7 ant to subsection (e)(3)(H) if the Sec8 retary determines that there has been a

9 violation of this paragraph or any conflict

10 of interest provision of the bylaws of the

11 Board with respect to the decision.

12 ‘‘(ii) REASONS.—In the case of any

13 violation and remand of a funding decision

14 to the Board under clause (i), the Sec15 retary shall inform the Board of the rea16 sons for the remand.

17 ‘‘(11) COMPENSATION.—

18 ‘‘(A) IN GENERAL.—A member of the

19 Board shall not receive any compensation by

20 reason of service on the Board.

21 ‘‘(B) EXPENSES.—A member of the Board

22 shall be reimbursed for travel, subsistence, and

23 other necessary expenses incurred by the mem24 ber in the performance of a duty of the mem25 ber.
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1 ‘‘(12) BYLAWS.—The Board shall adopt, and

2 may from time to time amend, any bylaw that is

3 necessary for the proper management and function4 ing of the Center.

5 ‘‘(13) PUBLIC HEARINGS.—Not later than 1

6 year after the effective date of this section, the

7 Board shall hold public hearings on policy objectives

8 of the program established under this section.

9 ‘‘(14) ORGANIZATIONAL SYSTEM.—The Board

10 shall provide a system of organization to fix respon11 sibility and promote efficiency in carrying out the

12 functions of the Board.

13 ‘‘(15) USE OF DEPARTMENT OF AGRI14 CULTURE.—The Board may, with the consent of the

15 Secretary, utilize the facilities of and the services of

16 employees of the Department of Agriculture, without

17 cost to the Center.

18 ‘‘(g) OFFICERS AND EMPLOYEES.—

19 ‘‘(1) EXECUTIVE DIRECTOR.—

20 ‘‘(A) IN GENERAL.—The Board shall ap21 point an executive director to be the chief exec22 utive officer of the Center.

23 ‘‘(B) TENURE.—The executive director

24 shall serve at the pleasure of the Board.
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1 ‘‘(C) COMPENSATION.—Compensation for

2 the executive director shall be established by the

3 Board.

4 ‘‘(2) OTHER OFFICERS AND EMPLOYEES.—The

5 Board may select and appoint officers, attorneys,

6 employees, and agents who shall be vested with such

7 powers and duties as the Board may determine.

8 ‘‘(3) DELEGATION.—The Board may, by resolu9 tion, delegate to the chairperson, the executive direc10 tor, or any other officer or employee any function,

11 power, or duty of the Board other than voting on a

12 grant, loan, contract, agreement, budget, or annual

13 strategic plan.

14 ‘‘(h) CONSULTATION.—To carry out this section, the

15 Board may consult with—

16 ‘‘(1) State departments of agriculture;

17 ‘‘(2) Federal departments and agencies;

18 ‘‘(3) nonprofit development corporations;

19 ‘‘(4) colleges and universities;

20 ‘‘(5) banking and other credit-related agencies;

21 ‘‘(6) agriculture and agribusiness organizations;

22 and

23 ‘‘(7) regional planning and development organi24 zations.

25 ‘‘(i) OVERSIGHT.—
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1 ‘‘(1) IN GENERAL.—The Secretary shall review

2 and monitor compliance by the Board and the Cen3 ter with this section.

4 ‘‘(2) SANCTIONS.—If, following notice and op5 portunity for a hearing, the Secretary finds that the

6 Board or the Center is not in compliance with this

7 section, the Secretary may—

8 ‘‘(A) cease making deposits to the Fund;

9 ‘‘(B) suspend the authority of the Center

10 to withdraw funds from the Fund; or

11 ‘‘(C) impose other appropriate sanctions,

12 including recoupment of money improperly ex13 pended for purposes prohibited or not author14 ized by this Act and disqualification from re15 ceipt of financial assistance under this section.

16 ‘‘(3) REMOVING SANCTIONS.—The Secretary

17 shall remove sanctions imposed under paragraph (2)

18 on a finding that there is no longer any failure by

19 the Board or the Center to comply with this section

20 or that the noncompliance shall be promptly cor21 rected.’’.
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1 CHAPTER 2—RURAL COMMUNITY

2 ADVANCEMENT PROGRAM

3 SEC. 761. RURAL COMMUNITY ADVANCEMENT PROGRAM.

4 The Consolidated Farm and Rural Development Act

5 (7 U.S.C. 1921 et seq.) is amended by adding at the end

6 the following:

7 ‘‘Subtitle E—Rural Community

8 Advancement Program

9 ‘‘SEC. 381A. DEFINITIONS.

10 ‘‘In this subtitle:

11 ‘‘(1) RURAL AND RURAL AREA.—The terms

12 ‘rural’ and ‘rural area’ mean, subject to section

13 306(a)(7), a city, town, or unincorporated area that

14 has a population of 50,000 inhabitants or less, other

15 than an urbanized area immediately adjacent to a

16 city, town, or unincorporated area that has a popu17 lation in excess of 50,000 inhabitants.

18 ‘‘(2) STATE.—The term ‘State’ means each of

19 the 50 States, the District of Columbia, the Com20 monwealth of Puerto Rico, Guam, the Virgin Islands

21 of the United States, American Samoa, the Com22 monwealth of the Northern Mariana Islands, the

23 Trust Territory of the Pacific Islands, and the Fed24 erated States of Micronesia.
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1 ‘‘SEC. 381B. ESTABLISHMENT.

2 ‘‘The Secretary shall establish a rural community ad3 vancement program to provide grants, loans, loan guaran4 tees, and other assistance to meet the rural development

5 needs of local communities in States and federally recog6 nized Indian tribes.

7 ‘‘SEC. 381C. NATIONAL OBJECTIVES.

8 ‘‘The national objectives of the program established

9 under this subtitle shall be to—

10 ‘‘(1) promote strategic development activities

11 and collaborative efforts by State and local commu12 nities, and federally recognized Indian tribes, to

13 maximize the impact of Federal assistance;

14 ‘‘(2) optimize the use of resources;

15 ‘‘(3) provide assistance in a manner that re16 flects the complexity of rural needs, including the

17 needs for business development, health care, edu18 cation, infrastructure, cultural resources, the envi19 ronment, and housing;

20 ‘‘(4) advance activities that empower, and build

21 the capacity of, State and local communities to de22 sign unique responses to the special needs of the

23 State and local communities, and federally recog24 nized Indian tribes, for rural development assistance;

25 and
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1 ‘‘(5) adopt flexible and innovative approaches to

2 solving rural development problems.

3 ‘‘SEC. 381D. STRATEGIC PLANS.

4 ‘‘(a) IN GENERAL.—The Secretary shall direct each

5 of the Directors of Rural Economic and Community De6 velopment State Offices to prepare a strategic plan for

7 each State for the delivery of assistance under this subtitle

8 within the State.

9 ‘‘(b) ASSISTANCE.—

10 ‘‘(1) IN GENERAL.—Financial assistance for

11 rural development allocated for a State under this

12 subtitle shall be used only for orderly community de13 velopment that is consistent with the strategic plan

14 of the State.

15 ‘‘(2) RURAL AREA.—Assistance under this sub16 title may only be provided in a rural area.

17 ‘‘(3) SMALL COMMUNITIES.—In carrying out

18 this subtitle within a State, the Secretary shall give

19 priority to communities with the smallest popu20 lations and lowest per capita income.

21 ‘‘(c) REVIEW.—The Secretary shall review the strate22 gic plan of a State at least once every 5 years.

23 ‘‘(d) CONTENTS.—A strategic plan of a State under

24 this section shall be a plan that—
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1 ‘‘(1) coordinates economic, human, and commu2 nity development plans and related activities pro3 posed for an affected area;

4 ‘‘(2) provides that the State and an affected

5 community (including local institutions and organi6 zations that have contributed to the planning proc7 ess) shall act as full partners in the process of devel8 oping and implementing the plan;

9 ‘‘(3) identifies goals, methods, and benchmarks

10 for measuring the success of carrying out the plan

11 and how the plan relates to local or regional

12 ecosystems;

13 ‘‘(4) provides for the involvement, in the prepa14 ration of the plan, of State, local, private, and public

15 persons, State rural development councils, federally16 recognized Indian tribes, and community-based orga17 nizations;

18 ‘‘(5) identifies the amount and source of Fed19 eral and non-Federal resources that are available for

20 carrying out the plan; and

21 ‘‘(6) includes such other information as may be

22 required by the Secretary.

23 ‘‘SEC. 381E. ACCOUNTS.

24 ‘‘(a) IN GENERAL.—Notwithstanding any other pro25 vision of law, for each fiscal year, the Secretary shall con-
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1 solidate into 3 accounts, corresponding to the 3 function

2 categories established under subsection (c), the amounts

3 made available for programs included in each function cat4 egory.

5 ‘‘(b) ALLOCATION WITHIN ACCOUNT.—The Sec6 retary shall allocate the amounts in each account for such

7 program purposes authorized for the corresponding func8 tion category among the States, as the Secretary may de9 termine in accordance with this subtitle.

10 ‘‘(c) FUNCTION CATEGORIES.—For purposes of sub11 section (a):

12 ‘‘(1) RURAL HOUSING AND COMMUNITY DEVEL13 OPMENT.—The rural housing and community devel14 opment category shall include funds made available

15 for—

16 ‘‘(A) community facility direct and guaran17 teed loans provided under section 306(a)(1);

18 ‘‘(B) community facility grants provided

19 under section 306(a)(21); and

20 ‘‘(C) rental housing loans for new housing

21 provided under section 515 of the Housing Act

22 of 1949 (42 U.S.C. 1485).

23 ‘‘(2) RURAL UTILITIES.—The rural utilities cat24 egory shall include funds made available for—
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1 ‘‘(A) water and waste disposal grants and

2 direct and guaranteed loans provided under

3 paragraphs (1) and (2) of section 306(a);

4 ‘‘(B) rural water and wastewater technical

5 assistance and training grants provided under

6 section 306(a)(16);

7 ‘‘(C) emergency community water assist8 ance grants provided under section 306A; and

9 ‘‘(D) solid waste management grants pro10 vided under section 310B(b).

11 ‘‘(3) RURAL BUSINESS AND COOPERATIVE DE12 VELOPMENT.—The rural business and cooperative

13 development category shall include funds made avail14 able for—

15 ‘‘(A) rural business opportunity grants

16 provided under section 306(a)(11)(A);

17 ‘‘(B) business and industry guaranteed

18 loans provided under section 310B(a)(1); and

19 ‘‘(C) rural business enterprise grants and

20 rural educational network grants provided

21 under section 310B(c).

22 ‘‘(d) OTHER PROGRAMS.—Subject to subsection (e),

23 in addition to any other appropriated amounts, the Sec24 retary may transfer amounts allocated for a State for any
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1 of the 3 function categories for a fiscal year under sub2 section (c) to—

3 ‘‘(1) mutual and self-help housing grants pro4 vided under section 523 of the Housing Act of 1949

5 (42 U.S.C. 1490c);

6 ‘‘(2) rural rental housing loans for existing

7 housing provided under section 515 of the Housing

8 Act of 1949 (42 U.S.C. 1485);

9 ‘‘(3) rural cooperative development grants pro10 vided under section 310B(e); and

11 ‘‘(4) grants to broadcasting systems provided

12 under section 310B(f).

13 ‘‘(e) TRANSFER.—

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

15 the Secretary may transfer within each State up to

16 25 percent of the total amount allocated for a State

17 under each function category referred to in sub18 section (c) for each fiscal year under this section to

19 any other function category, or to a program re20 ferred to in subsection (d), but excluding State

21 grants under section 381G.

22 ‘‘(2) LIMITATION.—Not more than 10 percent

23 of the total amount (excluding grants to States

24 under section 381G) made available for any fiscal

25 year for the programs covered by each of the 3 func-
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1 tion categories referred to in subsection (c), and the

2 programs referred to in subsection (d), shall be

3 available for the transfer.

4 ‘‘(f) AVAILABILITY OF FUNDS.—The Secretary may

5 make available funds appropriated for the programs re6 ferred to in subsection (c) to defray the cost of any subsidy

7 associated with a guarantee provided under section 381H,

8 except that not more than 5 percent of the funds provided

9 under subsection (c) may be made available within a State.

10 ‘‘SEC. 381F. ALLOCATION.

11 ‘‘(a) NATIONAL RESERVE.—The Secretary may use

12 not more than 10 percent of the total amount of funds

13 made available for a fiscal year under section 381E to es14 tablish a national reserve for rural development that may

15 be used by the Secretary in rural areas during the fiscal

16 year to—

17 ‘‘(1) meet situations of exceptional need;

18 ‘‘(2) provide incentives to promote or reward

19 superior performance; or

20 ‘‘(3) carry out performance-oriented demonstra21 tion projects.

22 ‘‘(b) INDIAN TRIBES.—

23 ‘‘(1) RESERVATION.—The Secretary shall re24 serve not less than 3 percent of the total amounts

25 made available for a fiscal year under section 381E
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1 to carry out rural development programs specified in

2 subsections (c) and (d) of section 381D for federally

3 recognized Indian tribes.

4 ‘‘(2) ALLOCATION.—The Secretary shall estab5 lish a formula for allocating the reserve and shall

6 administer the reserve through the appropriate Di7 rector of the Rural Economic and Cooperative De8 velopment State office.

9 ‘‘(c) STATE ALLOCATION.—

10 ‘‘(1) IN GENERAL.—The Secretary shall allo11 cate among all the States the amounts made avail12 able under section 381E in a fair, reasonable, and

13 appropriate manner that takes into consideration

14 rural population, levels of income, unemployment,

15 and other relevant factors, as determined by the

16 Secretary.

17 ‘‘(2) MINIMUM ALLOCATION.—In making the

18 allocations for each of fiscal years 1996 through

19 2002, the Secretary shall ensure that the percentage

20 allocation for each State is equal to the percentage

21 of the average of the total funds made available to

22 carry out the programs referred to in section

23 381E(c) that were obligated in the State for each of

24 fiscal years 1993 and 1994.
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1 ‘‘SEC. 381G. GRANTS TO STATES.

2 ‘‘(a) IN GENERAL.—Subject to subsection (c), the

3 Secretary shall grant to any eligible State from which a

4 request is received for a fiscal year 5 percent of the

5 amount allocated for the State for the fiscal year under

6 section 381F(c).

7 ‘‘(b) ELIGIBILITY.—To be eligible to receive a grant

8 under this section, the Secretary shall require that the

9 State maintain the grant funds received and any non-Fed10 eral matching funds to carry out this subtitle in a separate

11 account, to remain available until expended.

12 ‘‘(c) MATCHING FUNDS.—For any fiscal year, if non13 Federal matching funds are provided for a State in an

14 amount that is equal to 200 percent or more of an amount

15 equal to 5 percent of the amount allocated for the State

16 for the fiscal year under section 381F(c), the Secretary

17 shall pay to the State the grant provided under this sub18 section in an amount equal to 5 percent of the amount

19 allocated for the State for the fiscal year under section

20 381F(c).

21 ‘‘(d) USE OF FUNDS.—The Secretary shall require

22 that funds provided to a State under this section be used

23 in rural areas to achieve the purposes of the programs

24 referred to in section 381E(c) in accordance with the stra25 tegic plan referred to in section 381D.
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1 ‘‘(e) MAINTENANCE OF EFFORT.—The State shall

2 provide assurances that funds received under this section

3 will be used only to supplement, not to supplant, the

4 amount of Federal, State, and local funds otherwise ex5 pended for rural development assistance in the State.

6 ‘‘(f) APPEALS.—The Secretary shall provide to a

7 State an opportunity for an appeal of any action taken

8 under this section.

9 ‘‘(g) ADMINISTRATIVE COSTS.—Federal funds shall

10 not be used for any administrative costs incurred by a

11 State in carrying out this subtitle.

12 ‘‘(h) SPENDING OF FUNDS BY STATE.—

13 ‘‘(1) IN GENERAL.—Payments to a State from

14 a grant under this section for a fiscal year shall be

15 obligated by the State in the fiscal year or in the

16 succeeding fiscal year. A State shall obligate funds

17 under this section to provide assistance to rural

18 areas pursuant, to the maximum extent practicable,

19 to applications received from the rural areas.

20 ‘‘(2) FAILURE TO OBLIGATE.—If a State fails

21 to obligate payments in accordance with paragraph

22 (1), the Secretary shall make a corresponding reduc23 tion in the amount of payments provided to the

24 State under this section for the subsequent fiscal

25 year.
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1 ‘‘(3) NONCOMPLIANCE.—

2 ‘‘(A) REVIEW.—The Secretary shall review

3 and monitor State compliance with this section.

4 ‘‘(B) PENALTY.—If the Secretary finds

5 that there has been misuse of grant funds pro6 vided under this section, or noncompliance with

7 any of the terms and conditions of a grant,

8 after reasonable notice and opportunity for a

9 hearing—

10 ‘‘(i) the Secretary shall notify the

11 State of the finding; and

12 ‘‘(ii) no further payments to the State

13 shall be made with respect to the programs

14 funded under this section until the Sec15 retary is satisfied that there is no longer

16 any failure to comply or that the non17 compliance will be promptly corrected.

18 ‘‘(C) OTHER SANCTIONS.—In the case of a

19 finding of noncompliance made pursuant to

20 subparagraph (B), the Secretary may, in addi21 tion to, or in lieu of, imposing the sanctions de22 scribed in subparagraph (B), impose other ap23 propriate sanctions, including recoupment of

24 money improperly expended for purposes pro25 hibited or not authorized by this section and
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1 disqualification from the receipt of financial as2 sistance under this section.

3 ‘‘(i) NO ENTITLEMENT TO CONTRACT, GRANT, OR

4 ASSISTANCE.—Nothing in this subtitle—

5 ‘‘(1) entitles any person to assistance or a con6 tract or grant; or

7 ‘‘(2) limits the right of a State to impose addi8 tional limitations or conditions on assistance or a

9 contract or grant under this section.

10 ‘‘SEC. 381H. GUARANTEE AND COMMITMENT TO GUARAN11 TEE LOANS.

12 ‘‘(a) DEFINITION OF ELIGIBLE PUBLIC ENTITY.—In

13 this section, the term ‘eligible public entity’ means any

14 unit of general local government.

15 ‘‘(b) GUARANTEE AND COMMITMENT.—The Sec16 retary is authorized, on such terms and conditions as the

17 Secretary may prescribe, to guarantee and make commit18 ments to guarantee the notes or other obligations issued

19 by eligible public entities, or by public agencies designated

20 by the eligible public entities, for the purposes of financing

21 rural development assistance activities authorized and

22 funded under section 381G.

23 ‘‘(c) PREREQUISITES.—No guarantee or commitment

24 to guarantee shall be made with respect to any note or

25 other obligation if the issuer’s total outstanding notes or
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1 obligations guaranteed under this section (excluding any

2 amount repaid under the contract entered into under sub3 section (e)(1)(A)) would exceed an amount equal to 5

4 times the amount of the grant approval for the issuer pur5 suant to section 381G.

6 ‘‘(d) PAYMENT OF PRINCIPAL, INTEREST, AND

7 COSTS.—Notwithstanding any other provision of this sub8 title, grants allocated to an issuer pursuant to this subtitle

9 (including program income derived from the grants) shall

10 be authorized for use in the payment of principal and in11 terest due (including such servicing, underwriting, or

12 other costs as may be specified in regulations of the Sec13 retary) on the notes or other obligations guaranteed pur14 suant to this section.

15 ‘‘(e) REPAYMENT CONTRACT; SECURITY.—

16 ‘‘(1) IN GENERAL.—To ensure the repayment

17 of notes or other obligations and charges incurred

18 under this section and as a condition for receiving

19 the guarantees, the Secretary shall require the issuer

20 to—

21 ‘‘(A) enter into a contract, in a form ac22 ceptable to the Secretary, for repayment of

23 notes or other obligations guaranteed under this

24 section;
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1 ‘‘(B) pledge any grant for which the issuer

2 may become eligible under this subtitle; and

3 ‘‘(C) furnish, at the discretion of the Sec4 retary, such other security as may be consid5 ered appropriate by the Secretary in making

6 the guarantees.

7 ‘‘(2) SECURITY.—To assist in ensuring the re8 payment of notes or other obligations and charges

9 incurred under this section, a State shall pledge any

10 grant for which the State may become eligible under

11 this subtitle as security for notes or other obligations

12 and charges issued under this section by any unit of

13 general local government in the State.

14 ‘‘(f) PLEDGED GRANTS FOR REPAYMENTS.—Not15 withstanding any other provision of this subtitle, the Sec16 retary is authorized to apply grants pledged pursuant to

17 paragraphs (1)(B) and (2) of subsection (e) to any repay18 ments due the United States as a result of the guarantees.

19 ‘‘(g) OUTSTANDING OBLIGATIONS.—The total

20 amount of outstanding obligations guaranteed on a cumu21 lative basis by the Secretary pursuant to subsection (b)

22 shall not at any time exceed such amount as may be au23 thorized to be appropriated for any fiscal year.

24 ‘‘(h) PURCHASE OF GUARANTEED OBLIGATIONS BY

25 FEDERAL FINANCING BANK.—Notes or other obligations
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1 guaranteed under this section may not be purchased by

2 the Federal Financing Bank.

3 ‘‘(i) FULL FAITH AND CREDIT.—The full faith and

4 credit of the United States is pledged to the payment of

5 all guarantees made under this section. Any such guaran6 tee made by the Secretary shall be conclusive evidence of

7 the eligibility of the obligations for the guarantee with re8 spect to principal and interest. The validity of the guaran9 tee shall be incontestable in the hands of a holder of the

10 guaranteed obligations.

11 ‘‘SEC. 381I. LOCAL INVOLVEMENT.

12 ‘‘The Secretary shall require that an applicant for as13 sistance under this subtitle demonstrate evidence of sig14 nificant community support.

15 ‘‘SEC. 381J. STATE-TO-STATE COLLABORATION.

16 ‘‘The Secretary shall permit the establishment of vol17 untary pooling arrangements among States, and regional

18 fund-sharing agreements, to carry out this subtitle.

19 ‘‘SEC. 381K. RURAL VENTURE CAPITAL DEMONSTRATION

20 PROGRAM.

21 ‘‘(a) IN GENERAL.—The Secretary shall designate up

22 to 10 community development venture capital organiza23 tions to demonstrate the utility of guarantees to attract

24 increased private investment in rural private business en25 terprises.
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1 ‘‘(b) RURAL BUSINESS INVESTMENT POOL.—

2 ‘‘(1) ESTABLISHMENT.—To be eligible to par3 ticipate in the demonstration program, an organiza4 tion referred to in subsection (a) shall establish a

5 rural business private investment pool (referred to in

6 this subsection as a ‘pool’) for the purpose of mak7 ing equity investments in rural private business en8 terprises.

9 ‘‘(2) GUARANTEE.—From funds allocated for

10 the national reserve under section 381F(a), the Sec11 retary shall guarantee the funds in a pool against

12 loss, except that the guarantee shall not exceed an

13 amount equal to 30 percent of the total funds in the

14 pool.

15 ‘‘(3) AMOUNT.—The Secretary shall issue guar16 antees covering not more than $15,000,000 of obli17 gations for each of fiscal years 1996 through 2002.

18 ‘‘(4) TERM.—The term of a guarantee provided

19 under this subsection shall not exceed 10 years.

20 ‘‘(5) SUBMISSION OF PLAN.—To be eligible to

21 participate in the demonstration program, an organi22 zation referred to in subsection (a) shall submit a

23 plan that describes—

24 ‘‘(A) potential sources and uses of the pool

25 to be established by the organization;
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1 ‘‘(B) the utility of the guarantee authority

2 in attracting capital for the pool; and

3 ‘‘(C) on selection, mechanisms for notify4 ing State, local, and private nonprofit business

5 development organizations and businesses of the

6 existence of the pool.

7 ‘‘(6) COMPETITION.—

8 ‘‘(A) IN GENERAL.—The Secretary shall

9 conduct a competition for the designation and

10 establishment of pools.

11 ‘‘(B) PRIORITY.—In conducting the com12 petition, the Secretary shall give priority to or13 ganizations that—

14 ‘‘(i) have a demonstrated record of

15 performance or have a board and executive

16 director with experience in venture capital,

17 small business equity investments, or com18 munity development finance;

19 ‘‘(ii) propose to serve low-income com20 munities;

21 ‘‘(iii) propose to maintain an average

22 investment of not more than $500,000

23 from the pool of the organization;

24 ‘‘(iv) invest funds statewide or in a

25 multicounty region; and
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1 ‘‘(v) propose to target job opportuni2 ties resulting from the investments pri3 marily to economically disadvantaged indi4 viduals.

5 ‘‘(C) GEOGRAPHIC DIVERSITY.—To the ex6 tent practicable, the Secretary shall select orga7 nizations in diverse geographic areas.

8 ‘‘SEC. 381L. ANNUAL REPORT.

9 ‘‘(a) IN GENERAL.—The Secretary, in collaboration

10 with public, State, local, and private entities, State rural

11 development councils, and community-based organiza12 tions, shall prepare an annual report that contains evalua13 tions, assessments, and performance outcomes concerning

14 the rural community advancement programs carried out

15 under this subtitle.

16 ‘‘(b) SUBMISSION.—Not later than March 1 of each

17 year, the Secretary shall—

18 ‘‘(1) submit the report required under sub19 section (a) to Congress and the chief executives of

20 States participating in the program established

21 under this subtitle; and

22 ‘‘(2) make the report available to State and

23 local participants.
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1 ‘‘SEC. 381M. RURAL DEVELOPMENT INTERAGENCY WORK2 ING GROUP.

3 ‘‘(a) IN GENERAL.—The Secretary shall provide lead4 ership within the Executive branch for, and assume re5 sponsibility for, establishing an interagency working group

6 chaired by the Secretary.

7 ‘‘(b) DUTIES.—The working group shall establish

8 policy, provide coordination, make recommendations, and

9 evaluate the performance of or for all Federal rural devel10 opment efforts.

11 ‘‘SEC. 381N. DUTIES OF RURAL ECONOMIC AND COMMU12 NITY DEVELOPMENT STATE OFFICES.

13 ‘‘In carrying out this subtitle, the Director of a Rural

14 Economic and Community Development State Office

15 shall—

16 ‘‘(1) to the maximum extent practicable, ensure

17 that the State strategic plan is implemented;

18 ‘‘(2) coordinate community development objec19 tives within the State;

20 ‘‘(3) establish links between local, State, and

21 field office program administrators of the Depart22 ment of Agriculture;

23 ‘‘(4) ensure that recipient communities comply

24 with applicable Federal and State laws and require25 ments; and
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1 ‘‘(5) integrate State development programs with

2 assistance under this subtitle.

3 ‘‘SEC. 381O. ELECTRONIC TRANSFER.

4 ‘‘The Secretary shall transfer funds in accordance

5 with this subtitle through electronic transfer as soon as

6 practicable after the effective date of this subtitle.’’.

7 SEC. 762. COMMUNITY FACILITIES GRANT PROGRAM.

8 Section 306(a) of the Consolidated Farm and Rural

9 Development Act (7 U.S.C. 1926(a)) is amended by add10 ing at the end the following:

11 ‘‘(21) COMMUNITY FACILITIES GRANT PRO12 GRAM.—

13 ‘‘(A) IN GENERAL.—The Secretary may

14 make grants, in a total amount not to exceed

15 $10,000,000 for any fiscal year, to associations,

16 units of general local government, nonprofit

17 corporations, and federally recognized Indian

18 tribes to provide the Federal share of the cost

19 of developing specific essential community fa20 cilities in rural areas.

21 ‘‘(B) FEDERAL SHARE.—

22 ‘‘(i) IN GENERAL.—Except as pro23 vided in clauses (ii) and (iii), the Secretary

24 shall, by regulation, establish the amount
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1 of the Federal share of the cost of the fa2 cility under this paragraph.

3 ‘‘(ii) MAXIMUM AMOUNT.—The

4 amount of a grant provided under this

5 paragraph shall not exceed 75 percent of

6 the cost of developing a facility.

7 ‘‘(iii) GRADUATED SCALE.—The Sec8 retary shall provide for a graduated scale

9 for the amount of the Federal share pro10 vided under this paragraph, with higher

11 Federal shares for facilities in communities

12 that have lower community population and

13 income levels, as determined by the Sec14 retary.’’.

15 Subtitle C—Amendments to the

16 Rural Electrification Act of 1936

17 SEC. 771. PURPOSES; INVESTIGATIONS AND REPORTS.

18 Section 2 of the Rural Electrification Act of 1936 (7

19 U.S.C. 902) is amended—

20 (1) by striking ‘‘SEC. 2. (a) The Secretary of

21 Agriculture is’’ and inserting the following:

22 ‘‘SEC. 2. GENERAL AUTHORITY OF THE SECRETARY OF AG23 RICULTURE.

24 ‘‘(a) LOANS.—The Secretary of Agriculture (referred

25 to in this Act as the ‘Secretary’) is’’;
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1 (2) in subsection (a)—

2 (A) by striking ‘‘and the furnishing’’ the

3 first place it appears and all that follows

4 through ‘‘central station service’’; and

5 (B) by striking ‘‘systems; to make’’ and all

6 that follows through the period at the end of

7 the subsection and inserting ‘‘systems’’; and

8 (3) by striking subsection (b) and inserting the

9 following:

10 ‘‘(b) INVESTIGATIONS AND REPORTS.—The Sec11 retary may make, or cause to be made, studies, investiga12 tions, and reports regarding matters, including financial,

13 technological, and regulatory matters, affecting the condi14 tion and progress of electric, telecommunications, and eco15 nomic development in rural areas and publish and dissemi16 nate information with respect to the matters.’’.

17 SEC. 772. AUTHORIZATION OF APPROPRIATIONS.

18 (a) IN GENERAL.—Section 3 of the Rural Electrifica19 tion Act of 1936 (7 U.S.C. 903) is amended to read as

20 follows:

21 ‘‘SEC. 3. AUTHORIZATION OF APPROPRIATIONS.

22 ‘‘There are authorized to be appropriated such sums

23 as are necessary to carry out this Act.’’.

24 (b) CONFORMING AMENDMENTS.—
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1 (1) Section 301(a) of the Rural Electrification

2 Act of 1936 (7 U.S.C. 931(a)) is amended—

3 (A) by striking ‘‘(a)’’; and

4 (B) in paragraph (3), by striking ‘‘notwith5 standing section 3(a) of title I,’’.

6 (2) Section 302(b)(2) of the Rural Electrifica7 tion Act of 1936 (7 U.S.C. 932(b)(2)) is amended

8 by striking ‘‘pursuant to section 3(a) of this Act’’.

9 (3) The last sentence of section 406(a) of the

10 Rural Electrification Act of 1936 (7 U.S.C. 946(a))

11 is amended by striking ‘‘pursuant to section 3(a) of

12 this Act’’.

13 SEC. 773. LOANS FOR ELECTRICAL PLANTS AND TRANS14 MISSION LINES.

15 Section 4 of the Rural Electrification Act of 1936 (7

16 U.S.C. 904) is amended—

17 (1) in the first sentence—

18 (A) by striking ‘‘for the furnishing of’’ and

19 all that follows through ‘‘central station service

20 and’’; and

21 (B) by striking ‘‘the provisions of sections

22 3(d) and 3(e) but without regard to the 25 per

23 centum limitation therein contained,’’ and in24 serting ‘‘section 3,’’;
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1 (2) in the second sentence, by striking ‘‘: Pro2 vided further, That all’’ and all that follows through

3 ‘‘loan: And provided further, That’’ and inserting ‘‘,

4 except that’’; and

5 (3) in the third sentence, by striking ‘‘and sec6 tion 5’’.

7 SEC. 774. LOANS FOR ELECTRICAL AND PLUMBING EQUIP8 MENT.

9 (a) IN GENERAL.—Section 5 of the Rural Electrifica10 tion Act of 1936 (7 U.S.C. 905) is repealed.

11 (b) CONFORMING AMENDMENTS.—Section 12(a) of

12 the Rural Electrification Act of 1936 (7 U.S.C. 912(a))

13 is amended—

14 (1) by striking ‘‘: Provided, however, That’’ and

15 inserting ‘‘, except that,’’; and

16 (2) by striking ‘‘, and with respect to any loan

17 made under section 5,’’ and all that follows through

18 ‘‘section 3’’.

19 SEC. 775. TESTIMONY ON BUDGET REQUESTS.

20 Section 6 of the Rural Electrification Act of 1936 (7

21 U.S.C. 906) is amended by striking the second sentence.

22 SEC. 776. TRANSFER OF FUNCTIONS OF ADMINISTRATION

23 CREATED BY EXECUTIVE ORDER.

24 Section 8 of the Rural Electrification Act of 1936 (7

25 U.S.C. 908) is repealed.
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1 SEC. 777. ANNUAL REPORT.

2 Section 10 of the Rural Electrification Act of 1936

3 (7 U.S.C. 910) is repealed.

4 SEC. 778. PROHIBITION ON RESTRICTING WATER AND

5 WASTE FACILITY SERVICES TO ELECTRIC

6 CUSTOMERS.

7 The Rural Electrification Act of 1936 is amended by

8 inserting after section 16 (7 U.S.C. 916) the following:

9 ‘‘SEC. 17. PROHIBITION ON RESTRICTING WATER AND

10 WASTE FACILITY SERVICES TO ELECTRIC

11 CUSTOMERS.

12 ‘‘The Secretary shall establish rules and procedures

13 that prohibit borrowers under title III or under the Con14 solidated Farm and Rural Development Act (7 U.S.C.

15 1921 et seq.) from conditioning or limiting access to, or

16 the use of, water and waste facility services financed under

17 the Consolidated Farm and Rural Development Act if the

18 conditioning or limiting is based on whether individuals

19 or entities in the area served or proposed to be served by

20 the facility receive, or will accept, electric service from the

21 borrower.’’.

22 SEC. 779. TELEPHONE LOAN TERMS AND CONDITIONS.

23 Section 309 of the Rural Electrification Act of 1936

24 (7 U.S.C. 939) is amended—

25 (1) in subsection (a), by striking ‘‘(a) IN GEN26 ERAL.—’’; and
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1 (2) by striking subsection (b).

2 SEC. 780. PRIVATIZATION PROGRAM.

3 Section 311 of the Rural Electrification Act of 1936

4 (7 U.S.C. 940a) is repealed.

5 SEC. 781. RURAL BUSINESS INCUBATOR FUND.

6 (a) IN GENERAL.—Section 502 of the Rural Elec7 trification Act of 1936 (7 U.S.C. 950aa–1) is repealed.

8 (b) CONFORMING AMENDMENTS.—Section 501 of the

9 Rural Electrification Act of 1936 (7 U.S.C. 950aa) is

10 amended—

11 (1) in paragraph (5), by inserting ‘‘and’’ at the

12 end;

13 (2) in paragraph (6), by striking ‘‘; and’’ at the

14 end and inserting a period; and

15 (3) by striking paragraph (7).

16 Subtitle D—Miscellaneous Rural

17 Development Provisions

18 SEC. 791. INTEREST RATE FORMULA.

19 (a) BANKHEAD-JONES FARM TENANT ACT.—Section

20 32(e) of the Bankhead-Jones Farm Tenant Act (7 U.S.C.

21 1011) is amended by striking the fifth sentence and insert22 ing the following: ‘‘A loan under this subsection shall be

23 made under a contract that provides, under such terms

24 and conditions as the Secretary considers appropriate, for

25 the repayment of the loan in not more than 30 years, with
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1 interest at a rate not to exceed the current market yield

2 for outstanding municipal obligations with remaining peri3 ods to maturity comparable to the average maturity for

the loan, adjusted to the nearest 1 4 ⁄8 of 1 percent.’’.

5 (b) WATERSHED PROTECTION AND FLOOD PREVEN6 TION ACT.—Section 8 of the Watershed Protection and

7 Flood Prevention Act (16 U.S.C. 1006a) is amended by

8 striking the second sentence and inserting the following:

9 ‘‘A loan or advance under this section shall be made under

10 a contract or agreement that provides, under such terms

11 and conditions as the Secretary considers appropriate, for

12 the repayment of the loan or advance in not more than

13 50 years from the date when the principal benefits of the

14 works of improvement first become available, with interest

15 at a rate not to exceed the current market yield for out16 standing municipal obligations with remaining periods to

17 maturity comparable to the average maturity for the loan,

adjusted to the nearest 1 18 ⁄8 of 1 percent.’’.

19 SEC. 792. GRANTS FOR FINANCIALLY STRESSED FARMERS,

20 DISLOCATED FARMERS, AND RURAL FAMI21 LIES.

22 (a) IN GENERAL.—Section 502 of the Rural Develop23 ment Act of 1972 (7 U.S.C. 2662) is amended by striking

24 subsection (f).

25 (b) CONFORMING AMENDMENTS.—
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1 (1) Section 2389 of the Food, Agriculture, Con2 servation, and Trade Act of 1990 (Public Law 101–

3 624; 7 U.S.C. 2662 note) is amended by striking

4 subsection (d).

5 (2) Section 503(c) of the Rural Development

6 Act of 1972 (7 U.S.C. 2663(c)) is amended—

7 (A) in paragraph (1)—

8 (i) by striking ‘‘(1)’’;

9 (ii) by striking ‘‘section 502(e)’’ and

10 all that follows through ‘‘shall be distrib11 uted’’ and inserting ‘‘subsections (e), (h),

12 and (i) of section 502 shall be distributed’’;

13 and

14 (iii) by striking ‘‘objectives of’’ and all

15 that follows through ‘‘title’’ and inserting

16 ‘‘objectives of subsections (e), (h), and (i)

17 of section 502’’; and

18 (B) by striking paragraph (2).

19 SEC. 793. COOPERATIVE AGREEMENTS.

20 (a) Section 607(b) of the Rural Development Act of

21 1972 (7 U.S.C. 2204b(b)) is amended by striking para22 graph (4) and inserting the following:

23 ‘‘(4) COOPERATIVE AGREEMENTS.—

24 ‘‘(A) IN GENERAL.—Notwithstanding

25 chapter 63 of title 31, United States Code, the
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1 Secretary may enter into cooperative agree2 ments with other Federal agencies, State and

3 local governments, and any other organization

4 or individual to improve the coordination and

5 effectiveness of Federal programs, services, and

6 actions affecting rural areas, including the es7 tablishment and financing of interagency

8 groups, if the Secretary determines that the ob9 jectives of the agreement will serve the mutual

10 interest of the parties in rural development ac11 tivities.

12 ‘‘(B) COOPERATORS.—Each cooperator, in13 cluding each Federal agency, to the extent that

14 funds are otherwise available, may participate

15 in any cooperative agreement or working group

16 established pursuant to this paragraph by con17 tributing funds or other resources to the Sec18 retary to carry out the agreement or functions

19 of the group.’’.

20 (b) Notwithstanding any other provision of law, sec21 tion 343(a) of the Consolidated Farm and Rural Develop22 ment Act (7 U.S.C. 1991(a)) is amended in subparagraph

23 (F)—
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1 (i) by striking ‘‘exceed 15 percent’’

2 and all that follows through ‘‘Code’’ and

3 inserting the following: ‘‘exceed—

4 ‘‘(i) 25 percent of the median acreage

5 of the farms or ranches, as the case may

6 be, in the county in which the farm or

7 ranch operations of the applicant are lo8 cated, as reported in the most recent cen9 sus of agriculture taken under section 142

10 of title 13, United States Code.’’.

11 TITLE VIII—RESEARCH

12 EXTENSION AND EDUCATION

13 Subtitle A—Amendments to Na14 tional Agricultural Research,

15 Extension, and Teaching Policy

16 Act of 1977 and Related Statutes

17 SEC. 801. PURPOSES OF AGRICULTURAL RESEARCH, EX18 TENSION, AND EDUCATION.

19 Section 1402 of the National Agricultural Research,

20 Extension, and Teaching Policy Act of 1977 (7 U.S.C.

21 3101) is amended to read as follows:

22 ‘‘SEC. 1402. PURPOSES OF AGRICULTURAL RESEARCH, EX23 TENSION, AND EDUCATION.

24 ‘‘The purposes of federally supported agricultural re25 search, extension, and education are to—
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1 ‘‘(1) enhance the competitiveness of the United

2 States agriculture and food industry in an increas3 ingly competitive world environment;

4 ‘‘(2) increase the long-term productivity of the

5 United States agriculture and food industry while

6 protecting the natural resource base on which rural

7 America and the United States agricultural economy

8 depend;

9 ‘‘(3) develop new uses and new products for ag10 ricultural commodities, such as alternative fuels, and

11 develop new crops;

12 ‘‘(4) support agricultural research and exten13 sion to promote economic opportunity in rural com14 munities and to meet the increasing demand for in15 formation and technology transfer throughout the

16 United States agriculture industry;

17 ‘‘(5) improve risk management in the United

18 States agriculture industry;

19 ‘‘(6) improve the safe production and process20 ing of, and adding of value to, United States food

21 and fiber resources using methods that are environ22 mentally sound;

23 ‘‘(7) support higher education in agriculture to

24 give the next generation of Americans the knowl25 edge, technology, and applications necessary to en-
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1 hance the competitiveness of United States agri2 culture; and

3 ‘‘(8) maintain an adequate, nutritious, and safe

4 supply of food to meet human nutritional needs and

5 requirements.’’.

6 SEC. 802. SUBCOMMITTEE ON FOOD, AGRICULTURAL, AND

7 FORESTRY RESEARCH.

8 Section 401(h) of the National Science and Tech9 nology Policy, Organization, and Priorities Act of 1976

10 (42 U.S.C. 6651(h)) is amended by striking the second

11 through fifth sentences.

12 SEC. 803. JOINT COUNCIL ON FOOD AND AGRICULTURAL

13 SCIENCES.

14 (a) IN GENERAL.—Section 1407 of the National Ag15 ricultural Research, Extension, and Teaching Policy Act

16 of 1977 (7 U.S.C. 3122) is repealed.

17 (b) CONFORMING AMENDMENTS.—

18 (1) Section 1404 of the National Agricultural

19 Research, Extension, and Teaching Policy Act of

20 1977 (7 U.S.C. 3103) is amended—

21 (A) by striking paragraph (9); and

22 (B) by redesignating paragraphs (10)

23 through (18) as paragraphs (9) through (17),

24 respectively.
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1 (2) Section 1405 of the National Agricultural

2 Research, Extension, and Teaching Policy Act of

3 1977 (7 U.S.C. 3121) is amended—

4 (A) in paragraph (5), by striking ‘‘Joint

5 Council, Advisory Board,’’ and inserting ‘‘Advi6 sory Board’’; and

7 (B) in paragraph (11), by striking ‘‘the

8 Joint Council,’’.

9 (3) Section 1410(2) of the National Agricul10 tural Research, Extension, and Teaching Policy Act

11 of 1977 (7 U.S.C. 3125(2)) is amended by striking

12 ‘‘the recommendations of the Joint Council devel13 oped under section 1407(f),’’.

14 (4) Section 1412 of the National Agricultural

15 Research, Extension, and Teaching Policy Act of

16 1977 (7 U.S.C. 3127) is amended—

17 (A) in the section heading, by striking

18 ‘‘JOINT COUNCIL, ADVISORY BOARD,’’ and

19 inserting ‘‘ADVISORY BOARD’’;

20 (B) in subsection (a)—

21 (i) by striking ‘‘Joint Council, the Ad22 visory Board,’’ and inserting ‘‘Advisory

23 Board’’;
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1 (ii) by striking ‘‘the cochairpersons of

2 the Joint Council and’’ each place it ap3 pears; and

4 (iii) in paragraph (2), by striking

5 ‘‘one shall serve as the executive secretary

6 to the Joint Council, one shall serve as the

7 executive secretary to the Advisory

8 Board,’’ and inserting ‘‘1 shall serve as the

9 executive secretary to the Advisory

10 Board’’; and

11 (C) in subsections (b) and (c), by striking

12 ‘‘Joint Council, Advisory Board,’’ each place it

13 appears and inserting ‘‘Advisory Board’’.

14 (5) Section 1413 of the National Agricultural

15 Research, Extension, and Teaching Policy Act of

16 1977 (7 U.S.C. 3128) is amended—

17 (A) in subsection (a), by striking ‘‘Joint

18 Council, the Advisory Board,’’ and inserting

19 ‘‘Advisory Board’’;

20 (B) in subsection (b), by striking ‘‘Joint

21 Council, Advisory Board,’’ and inserting ‘‘Advi22 sory Board’’; and

23 (C) by striking subsection (d).
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1 (6) Section 1434(c) of the National Agricul2 tural Research, Extension, and Teaching Policy Act

3 of 1977 (7 U.S.C. 3196(c)) is amended—

4 (A) in the second sentence, by striking

5 ‘‘Joint Council, the Advisory Board,’’ and in6 serting ‘‘Advisory Board’’; and

7 (B) in the fourth sentence, by striking

8 ‘‘the Joint Council,’’.

9 SEC. 804. NATIONAL AGRICULTURAL RESEARCH, EXTEN10 SION, EDUCATION, AND ECONOMICS ADVI11 SORY BOARD.

12 (a) IN GENERAL.—Section 1408 of the National Ag13 ricultural Research, Extension, and Teaching Policy Act

14 of 1977 (7 U.S.C. 3123) is amended to read as follows:

15 ‘‘SEC. 1408. NATIONAL AGRICULTURAL RESEARCH, EXTEN16 SION, EDUCATION, AND ECONOMICS ADVI17 SORY BOARD.

18 ‘‘(a) ESTABLISHMENT.—The Secretary shall estab19 lish within the Department of Agriculture a board to be

20 known as the ‘National Agricultural Research, Extension,

21 Education, and Economics Advisory Board’.

22 ‘‘(b) MEMBERSHIP.—

23 ‘‘(1) IN GENERAL.—The Advisory Board shall

24 consist of 25 members, appointed by the Secretary.
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1 ‘‘(2) SELECTION OF MEMBERS.—The Secretary

2 shall appoint members to the Advisory Board from

3 individuals who are selected from national farm,

4 commodity, agribusiness, environmental, consumer,

5 and other organizations directly concerned with agri6 cultural research, education, and extension pro7 grams.

8 ‘‘(3) REPRESENTATION.—A member of the Ad9 visory Board may represent 1 or more of the organi10 zations referred to in paragraph (2), except that 1

11 member shall be a representative of the scientific

12 community that is not closely associated with agri13 culture. The Secretary shall ensure that the mem14 bership of the Advisory Board includes full-time

15 farmers and ranchers and represents the interests of

16 the full variety of stakeholders in the agricultural

17 sector.

18 ‘‘(c) DUTIES.—The Advisory Board shall—

19 ‘‘(1) review and provide consultation to the Sec20 retary and land-grant colleges and universities on

21 long-term and short-term national policies and prior22 ities, as set forth in section 1402, relating to agri23 cultural research, extension, education, and econom24 ics;
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1 ‘‘(2) evaluate the results and effectiveness of

2 agricultural research, extension, education, and eco3 nomics with respect to the policies and priorities;

4 ‘‘(3) review and make recommendations to the

5 Under Secretary of Agriculture for Research, Edu6 cation, and Economics on the research, extension,

7 education, and economics portion of the draft strate8 gic plan required under section 306 of title 5, Unit9 ed States Code; and

10 ‘‘(4) review the mechanisms of the Department

11 of Agriculture for technology assessment (which

12 should be conducted by qualified professionals) for

13 the purposes of—

14 ‘‘(A) performance measurement and eval15 uation of the implementation by the Secretary

16 of the strategic plan required under section 306

17 of title 5, United States Code;

18 ‘‘(B) implementation of the national re19 search policies and priorities set forth in section

20 1402; and

21 ‘‘(C) the development of mechanisms for

22 the assessment of emerging public and private

23 agricultural research and technology transfer

24 initiatives.
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1 ‘‘(d) CONSULTATION.—In carrying out this section,

2 the Advisory Board shall solicit opinions and recommenda3 tions from persons who will benefit from and use federally

4 funded agricultural research, extension, education, and ec5 onomics.

6 ‘‘(e) APPOINTMENT.—A member of the Advisory

7 Board shall be appointed by the Secretary for a term of

8 up to 3 years. The members of the Advisory Board shall

9 be appointed to serve staggered terms.

10 ‘‘(f) FEDERAL ADVISORY COMMITTEE ACT.—The

11 Advisory Board shall be deemed to have filed a charter

12 for the purpose of section 9(c) of the Federal Advisory

13 Committee Act (5 U.S.C. App.).

14 ‘‘(g) TERMINATION.—The Advisory Board shall re15 main in existence until September 30, 2002.’’.

16 (b) CONFORMING AMENDMENTS.—

17 (1) Section 1404(1) of the National Agricul18 tural Research, Extension, and Teaching Policy Act

19 of 1977 (7 U.S.C. 3103(1)) is amended by striking

20 ‘‘National Agricultural Research and Extension

21 Users Advisory Board’’ and inserting ‘‘National Ag22 ricultural Research, Extension, Education, and Eco23 nomics Advisory Board’’.

24 (2) Section 1410(2) of the National Agricul25 tural Research, Extension, and Teaching Policy Act
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1 of 1977 (7 U.S.C. 3125(2)) is amended by striking

2 ‘‘the recommendations of the Advisory Board devel3 oped under section 1408(g),’’ and inserting ‘‘any

4 recommendations of the Advisory Board’’.

5 (3) The last sentence of section 4(a) of the Re6 newable Resources Extension Act of 1978 (16

7 U.S.C. 1673(a)) is amended by striking ‘‘National

8 Agricultural Research and Extension Users Advisory

9 Board’’ and inserting ‘‘National Agricultural Re10 search, Extension, Education, and Economics Advi11 sory Board’’.

12 SEC. 805. AGRICULTURAL SCIENCE AND TECHNOLOGY RE13 VIEW BOARD.

14 (a) IN GENERAL.—Section 1408A of the National

15 Agricultural Research, Extension, and Teaching Policy

16 Act of 1977 (7 U.S.C. 3123a) is repealed.

17 (b) CONFORMING AMENDMENTS.—

18 (1) Section 1404 of the National Agricultural

19 Research, Extension, and Teaching Policy Act of

20 1977 (7 U.S.C. 3103) (as amended by section

21 803(b)(1)(B)) is further amended—

22 (A) in paragraph (15), by adding ‘‘and’’ at

23 the end;

24 (B) in paragraph (16), by striking ‘‘; and’’

25 and inserting a period; and
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1 (C) by striking paragraph (17).

2 (2) Section 1405(12) of the National Agricul3 tural Research, Extension, and Teaching Policy Act

4 of 1977 (7 U.S.C. 3121(12)) is amended by striking

5 ‘‘, after coordination with the Technology Board,’’.

6 (3) Section 1410(2) of the National Agricul7 tural Research, Extension, and Teaching Policy Act

8 of 1977 (7 U.S.C. 3125(2)) (as amended by section

9 804(b)(2)) is further amended by striking ‘‘and the

10 recommendations of the Technology Board developed

11 under section 1408A(d)’’.

12 (4) Section 1412 of the National Agricultural

13 Research, Extension, and Teaching Policy Act of

14 1977 (7 U.S.C. 3127) (as amended by section

15 803(b)(4)) is further amended—

16 (A) in the section heading, by striking

17 ‘‘AND TECHNOLOGY BOARD’’;

18 (B) in subsection (a)—

19 (i) by striking ‘‘and the Technology

20 Board’’ each place it appears; and

21 (ii) in paragraph (2), by striking ‘‘and

22 one shall serve as the executive secretary

23 to the Technology Board’’; and

24 (C) in subsections (b) and (c), by striking

25 ‘‘and Technology Board’’ each place it appears.
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1 (5) Section 1413 of the National Agricultural

2 Research, Extension, and Teaching Policy Act of

3 1977 (7 U.S.C. 3128) (as amended by section

4 803(b)(5)) is further amended—

5 (A) in subsection (a), by striking ‘‘or the

6 Technology Board’’; and

7 (B) in subsection (b), by striking ‘‘and the

8 Technology Board’’.

9 SEC. 806. FEDERAL ADVISORY COMMITTEE ACT EXEMP10 TION FOR FEDERAL-STATE COOPERATIVE

11 PROGRAMS.

12 Section 1409A of the National Agricultural Research,

13 Extension, and Teaching Policy Act of 1977 (7 U.S.C.

14 3124a) is amended by adding at the end the following:

15 ‘‘(e) APPLICABILITY OF FEDERAL ADVISORY COM16 MITTEE ACT.—

17 ‘‘(1) PUBLIC MEETINGS.—All meetings of any

18 entity described in paragraph (2) shall be publicly

19 announced in advance and shall be open to the pub20 lic. Detailed minutes of meetings and other appro21 priate records of the activities of such an entity shall

22 be kept and made available to the public on request.

23 ‘‘(2) EXEMPTION.—The Federal Advisory Com24 mittee Act (5 U.S.C. App.) and title XVIII of the

25 Food and Agriculture Act of 1977 (7 U.S.C. 2281
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1 et seq.) shall not apply to any committee, board,

2 commission, panel, or task force, or similar entity

3 that—

4 ‘‘(A) is created for the purpose of coopera5 tive efforts in agricultural research, extension,

6 or teaching; and

7 ‘‘(B) consists entirely of full-time Federal

8 employees and individuals who are employed by,

9 or who are officials of, a State cooperative insti10 tution or a State cooperative agent.’’.

11 SEC. 807. COORDINATION AND PLANNING OF AGRICUL12 TURAL RESEARCH, EXTENSION, AND EDU13 CATION.

14 Subtitle B of the National Agricultural Research, Ex15 tension, and Teaching Policy Act of 1977 (7 U.S.C. 3121

16 et seq.) is amended by adding at the end the following:

17 ‘‘SEC. 1413A. ACCOUNTABILITY.

18 ‘‘(a) IN GENERAL.—The Secretary shall develop and

19 carry out a system to monitor and evaluate agricultural

20 research and extension activities conducted or supported

21 by the Federal Government that will enable the Secretary

22 to measure the impact of research, extension, and edu23 cation programs according to priorities, goals, and man24 dates established by law.
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1 ‘‘(b) CONSISTENCY WITH OTHER REQUIREMENTS.—

2 The system shall be developed and carried out in a manner

3 that is consistent with the Government Performance and

4 Results Act of 1993 (Public Law 103–62; 107 Stat. 285)

5 and amendments made by the Act.

6 ‘‘SEC. 1413B. IMMINENT OR EMERGING THREATS TO FOOD

7 SAFETY AND ANIMAL AND PLANT HEALTH.

8 ‘‘In the case of any activities of an agency of the De9 partment of Agriculture that relate to food safety, animal

10 or plant health, research, education, or technology trans11 fer, the Secretary may transfer up to 5 percent of any

12 amounts made available to the agency for a fiscal year

13 to an agency of the Department of Agriculture reporting

14 to the Under Secretary of Agriculture for Research, Edu15 cation, and Economics for the purpose of addressing im16 minent or emerging threats to food safety and animal and

17 plant health.

18 ‘‘SEC. 1413C. FEDERAL ADVISORY COMMITTEE ACT EXEMP19 TION FOR COMPETITIVE RESEARCH, EXTEN20 SION, AND EDUCATION PROGRAMS.

21 ‘‘The Federal Advisory Committee Act (5 U.S.C.

22 App.) and title XVIII of the Food and Agriculture Act

23 of 1977 (7 U.S.C. 2281 et seq.) shall not apply to any

24 committee, board, commission, panel, or task force, or

25 similar entity, created solely for the purpose of reviewing
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1 applications or proposals requesting funding under any

2 competitive research, extension, or education program car3 ried out by the Secretary.’’.

4 SEC. 808. GRANTS AND FELLOWSHIPS FOR FOOD AND AGRI5 CULTURAL SCIENCES EDUCATION.

6 (a) IN GENERAL.—Section 1417 of the National Ag7 ricultural Research, Extension, and Teaching Policy Act

8 of 1977 (7 U.S.C. 3152) is amended—

9 (1) in subsection (b)—

10 (A) by inserting before ‘‘for a period’’ the

11 following: ‘‘or to research foundations main12 tained by the colleges and universities,’’; and

13 (B) by striking paragraph (4) and insert14 ing the following:

15 ‘‘(4) to design and implement food and agricul16 tural programs to build teaching and research capac17 ity at primarily minority institutions;’’;

18 (2) by redesignating subsections (h) and (i) as

19 subsections (i) and (j), respectively;

20 (3) by inserting after subsection (g) the follow21 ing:

22 ‘‘(h) SECONDARY EDUCATION AND 2-YEAR POST23 SECONDARY EDUCATION TEACHING PROGRAMS.—

24 ‘‘(1) AGRISCIENCE AND AGRIBUSINESS EDU25 CATION.—The Secretary shall—
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1 ‘‘(A) promote and strengthen secondary

2 education and 2-year postsecondary education

3 in agriscience and agribusiness in order to help

4 ensure the existence in the United States of a

5 qualified workforce to serve the food and agri6 cultural sciences system; and

7 ‘‘(B) promote complementary and syner8 gistic linkages among secondary, 2-year post9 secondary, and higher education programs in

10 the food and agricultural sciences in order to

11 promote excellence in education and encourage

12 more young Americans to pursue and complete

13 a baccalaureate or higher degree in the food

14 and agricultural sciences.

15 ‘‘(2) GRANTS.—The Secretary may make com16 petitive or noncompetitive grants, for grant periods

17 not to exceed 5 years, to public secondary education

18 institutions, 2-year community colleges, and junior

19 colleges that have made a commitment to teaching

20 agriscience and agribusiness—

21 ‘‘(A) to enhance curricula in agricultural

22 education;

23 ‘‘(B) to increase faculty teaching com24 petencies;
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1 ‘‘(C) to interest young people in pursuing

2 a higher education in order to prepare for sci3 entific and professional careers in the food and

4 agricultural sciences;

5 ‘‘(D) to promote the incorporation of

6 agriscience and agribusiness subject matter into

7 other instructional programs, particularly class8 es in science, business, and consumer education;

9 ‘‘(E) to facilitate joint initiatives among

10 other secondary or 2-year postsecondary institu11 tions and with 4-year colleges and universities

12 to maximize the development and use of re13 sources such as faculty, facilities, and equip14 ment to improve agriscience and agribusiness

15 education; and

16 ‘‘(F) to support other initiatives designed

17 to meet local, State, regional, or national needs

18 related to promoting excellence in agriscience

19 and agribusiness education.’’; and

20 (4) in subsection (j) (as so redesignated), by

21 striking ‘‘1995’’ and inserting ‘‘2002’’.

22 (b) TRANSFER OF FUNCTIONS AND DUTIES PER23 TAINING TO THE FUTURE FARMERS OF AMERICA.—

24 (1) IN GENERAL.—There are transferred to the

25 Secretary of Agriculture all the functions and duties
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1 of the Secretary of Education under the Act entitled

2 ‘‘An Act to incorporate the Future Farmers of

3 America, and for other purposes’’, approved August

4 30, 1950 (36 U.S.C. 271 et seq.).

5 (2) PERSONNEL AND UNEXPENDED BAL6 ANCES.—There are transferred to the Department

7 of Agriculture all personnel and balances of unex8 pended appropriations available for carrying out the

9 duties and functions transferred under paragraph

10 (1).

11 (3) AMENDMENTS.—The Act entitled ‘‘An Act

12 to incorporate the Future Farmers of America, and

13 for other purposes’’, approved August 30, 1950, is

14 amended—

15 (A) in section 7(c) (36 U.S.C. 277(c)) by

16 striking ‘‘Secretary of Education, the executive

17 secretary shall be a member of the Department

18 of Education’’ and inserting ‘‘Secretary of Agri19 culture, the executive secretary shall be an offi20 cer or employee of the Department of Agri21 culture’’;

22 (B) in section 8(a) (36 U.S.C. 278(a))—

23 (i) by striking ‘‘Secretary of Edu24 cation’’ and inserting ‘‘Secretary of Agri25 culture’’; and
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1 (ii) by striking ‘‘Department of Edu2 cation’’ and inserting ‘‘Department of Ag3 riculture’’; and

4 (C) in section 18 (36 U.S.C. 288)—

5 (i) by striking ‘‘Secretary of Edu6 cation’’ each place it appears and inserting

7 ‘‘Secretary of Agriculture’’; and

8 (ii) by striking ‘‘Department of Edu9 cation’’ each place it appears and inserting

10 ‘‘Department of Agriculture’’.

11 SEC. 809. GRANTS FOR RESEARCH ON THE PRODUCTION

12 AND MARKETING OF ALCOHOLS AND INDUS13 TRIAL HYDROCARBONS FROM AGRICUL14 TURAL COMMODITIES AND FOREST PROD15 UCTS.

16 Section 1419(d) of the National Agricultural Re17 search, Extension, and Teaching Policy Act of 1977 (7

18 U.S.C. 3154(d)) is amended by striking ‘‘1995’’ and in19 serting ‘‘2002’’.

20 SEC. 810. POLICY RESEARCH CENTERS.

21 The National Agricultural Research, Extension, and

22 Teaching Policy Act of 1977 (as amended by section 809)

23 is further amended by inserting after section 1418 (7

24 U.S.C. 3153) the following:
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1 ‘‘SEC. 1419. POLICY RESEARCH CENTERS.

2 ‘‘(a) IN GENERAL.—Consistent with this section, the

3 Secretary may make grants, competitive grants, and spe4 cial research grants to, and enter into cooperative agree5 ments and other contracting instruments with, policy re6 search centers to conduct research and education pro7 grams that are objective, operationally independent, and

8 external to the Federal Government and that concern the

9 effect of public policies on—

10 ‘‘(1) the farm and agricultural sectors;

11 ‘‘(2) the environment;

12 ‘‘(3) rural families, households and economies;

13 and

14 ‘‘(4) consumers, food, and nutrition.

15 ‘‘(b) ELIGIBLE RECIPIENTS.—Except to the extent

16 otherwise prohibited by law, State agricultural experiment

17 stations, colleges and universities, other research institu18 tions and organizations, private organizations, corpora19 tions, and individuals shall be eligible to apply for and re20 ceive funding under subsection (a).

21 ‘‘(c) ACTIVITIES.—Under this section, funding may

22 be provided for disciplinary and interdisciplinary research

23 and education concerning activities consistent with this

24 section, including activities that—

25 ‘‘(1) quantify the implications of public policies

26 and regulations;
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1 ‘‘(2) develop theoretical and research methods;

2 ‘‘(3) collect and analyze data for policymakers,

3 analysts, and individuals; and

4 ‘‘(4) develop programs to train analysts.

5 ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There

6 are authorized to be appropriated such sums as are nec7 essary to carry out this section for fiscal years 1996

8 through 2002.’’.

9 SEC. 811. HUMAN NUTRITION INTERVENTION AND HEALTH

10 PROMOTION RESEARCH PROGRAM.

11 Section 1424 of the National Agricultural Research,

12 Extension, and Teaching Policy Act of 1977 (7 U.S.C.

13 3174) is amended to read as follows:

14 ‘‘SEC. 1424. HUMAN NUTRITION INTERVENTION AND

15 HEALTH PROMOTION RESEARCH PROGRAM.

16 ‘‘(a) AUTHORITY OF SECRETARY.—

17 ‘‘(1) IN GENERAL.—The Secretary may estab18 lish, and award grants for projects for, a multi-year

19 research initiative on human nutrition intervention

20 and health promotion.

21 ‘‘(2) EMPHASIS OF INITIATIVE.—In administer22 ing human nutrition research projects under this

23 section, the Secretary shall give specific emphasis

24 to—
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1 ‘‘(A) coordinated longitudinal research as2 sessments of nutritional status; and

3 ‘‘(B) the implementation of unified, inno4 vative intervention strategies;

5 to identify and solve problems of nutritional inad6 equacy and contribute to the maintenance of health,

7 well-being, performance, and productivity of individ8 uals, thereby reducing the need of the individuals to

9 use the health care system and social programs of

10 the United States.

11 ‘‘(b) ADMINISTRATION OF FUNDS.—The Adminis12 trator of the Agricultural Research Service shall admin13 ister funds made available to carry out this section to en14 sure a coordinated approach to health and nutrition re15 search efforts.

16 ‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There

17 are authorized to be appropriated such sums as are nec18 essary to carry out this section for fiscal years 1996

19 through 2002.’’.

20 SEC. 812. FOOD AND NUTRITION EDUCATION PROGRAM.

21 Section 1425(c)(3) of the National Agricultural Re22 search, Extension, and Teaching Policy Act of 1977 (7

23 U.S.C. 3175(c)(3)) is amended by striking ‘‘fiscal year

24 1995’’ and inserting ‘‘each of fiscal years 1996 through

25 2002’’.
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1 SEC. 813. PURPOSES AND FINDINGS RELATING TO ANIMAL

2 HEALTH AND DISEASE RESEARCH.

3 Section 1429 of the National Agricultural Research,

4 Extension, and Teaching Policy Act of 1977 (7 U.S.C.

5 3191) is amended to read as follows:

6 ‘‘SEC. 1429. PURPOSES AND FINDINGS RELATING TO ANI7 MAL HEALTH AND DISEASE RESEARCH.

8 ‘‘(a) PURPOSES.—The purposes of this subtitle are

9 to—

10 ‘‘(1) promote the general welfare through the

11 improved health and productivity of domestic live12 stock, poultry, aquatic animals, and other income13 producing animals that are essential to the food sup14 ply of the United States and the welfare of produc15 ers and consumers of animal products;

16 ‘‘(2) improve the health of horses;

17 ‘‘(3) facilitate the effective treatment of, and, to

18 the extent possible, prevent animal and poultry dis19 eases in both domesticated and wild animals that, if

20 not controlled, would be disastrous to the United

21 States livestock and poultry industries and endanger

22 the food supply of the United States;

23 ‘‘(4) improve methods for the control of orga24 nisms and residues in food products of animal origin

25 that could endanger the human food supply;
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1 ‘‘(5) improve the housing and management of

2 animals to improve the well-being of livestock pro3 duction species;

4 ‘‘(6) minimize livestock and poultry losses due

5 to transportation and handling;

6 ‘‘(7) protect human health through control of

7 animal diseases transmissible to humans;

8 ‘‘(8) improve methods of controlling the births

9 of predators and other animals; and

10 ‘‘(9) otherwise promote the general welfare

11 through expanded programs of research and exten12 sion to improve animal health.

13 ‘‘(b) FINDINGS.—Congress finds that—

14 ‘‘(1) the total animal health and disease re15 search and extension efforts of State colleges and

16 universities and of the Federal Government would be

17 more effective if there were close coordination be18 tween the efforts; and

19 ‘‘(2) colleges and universities having accredited

20 schools or colleges of veterinary medicine and State

21 agricultural experiment stations that conduct animal

22 health and disease research are especially vital in

23 training research workers in animal health and re24 lated disciplines.’’.
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1 SEC. 814. ANIMAL HEALTH SCIENCE RESEARCH ADVISORY

2 BOARD.

3 Section 1432 of the National Agricultural Research,

4 Extension, and Teaching Policy Act of 1977 (7 U.S.C.

5 3194) is repealed.

6 SEC. 815. ANIMAL HEALTH AND DISEASE CONTINUING RE7 SEARCH.

8 Section 1433 of the National Agricultural Research,

9 Extension, and Teaching Policy Act of 1977 (7 U.S.C.

10 3195) is amended—

11 (1) in the first sentence of subsection (a), by

12 striking ‘‘1995’’ and inserting ‘‘2002’’;

13 (2) in subsection (b)(2)—

14 (A) by striking ‘‘domestic livestock and

15 poultry’’ each place it appears and inserting

16 ‘‘domestic livestock, poultry, and commercial

17 aquaculture species’’; and

18 (B) in the second sentence, by striking

19 ‘‘horses, and poultry’’ and inserting ‘‘horses,

20 poultry, and commercial aquaculture species’’;

21 (3) in subsection (d), by striking ‘‘domestic live22 stock and poultry’’ and inserting ‘‘domestic live23 stock, poultry, and commercial aquaculture species’’;

24 and
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1 (4) in subsection (f), by striking ‘‘domestic live2 stock and poultry’’ and inserting ‘‘domestic live3 stock, poultry, and commercial aquaculture species’’.

4 SEC. 816. ANIMAL HEALTH AND DISEASE NATIONAL OR RE5 GIONAL RESEARCH.

6 Section 1434 of the National Agricultural Research,

7 Extension, and Teaching Policy Act of 1977 (7 U.S.C.

8 3196) is amended—

9 (1) in subsection (a)—

10 (A) by inserting ‘‘or national or regional

11 problems relating to pre-harvest, on-farm food

12 safety, or animal well-being,’’ after ‘‘problems,’’;

13 and

14 (B) by striking ‘‘1995’’ and inserting

15 ‘‘2002’’;

16 (2) in subsection (b), by striking ‘‘eligible insti17 tutions’’ and inserting ‘‘State agricultural experi18 ment stations, colleges and universities, other re19 search institutions and organizations, Federal agen20 cies, private organizations or corporations, and indi21 viduals’’;

22 (3) in subsection (c)—

23 (A) in the first sentence, by inserting ‘‘,

24 food safety, and animal well-being’’ after ‘‘ani25 mal health and disease’’; and
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1 (B) in the fourth sentence—

2 (i) by redesignating paragraphs (2)

3 and (3) as paragraphs (4) and (5), respec4 tively; and

5 (ii) by inserting after paragraph (1)

6 the following:

7 ‘‘(2) any food safety problem that has a signifi8 cant pre-harvest (on-farm) component and is recog9 nized as posing a significant health hazard to the

10 consuming public;

11 ‘‘(3) issues of animal well-being related to pro12 duction methods that will improve the housing and

13 management of animals to improve the well-being of

14 livestock production species;’’;

15 (4) in the first sentence of subsection (d), by

16 striking ‘‘to eligible institutions’’; and

17 (5) by adding at the end the following:

18 ‘‘(f) APPLICABILITY OF FEDERAL ADVISORY COM19 MITTEE ACT.—The Federal Advisory Committee Act (5

20 U.S.C. App.) and title XVIII of the Food and Agriculture

21 Act of 1977 (7 U.S.C. 2281 et seq.) shall not apply to

22 a panel or board created solely for the purpose of review23 ing applications or proposals submitted under this sub24 title.’’.
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1 SEC. 817. RESIDENT INSTRUCTION PROGRAM AT 1890 LAND2 GRANT COLLEGES.

3 Section 1446 of the National Agricultural Research,

4 Extension, and Teaching Policy Act of 1977 (7 U.S.C.

5 3222a) is repealed.

6 SEC. 818. GRANT PROGRAM TO UPGRADE AGRICULTURAL

7 AND FOOD SCIENCES FACILITIES AT 1890

8 LAND-GRANT COLLEGES.

9 Section 1447(b) of the National Agricultural Re10 search, Extension, and Teaching Policy Act of 1977 (7

11 U.S.C. 3222b(b)) is amended by striking ‘‘$8,000,000 for

12 each of the fiscal years 1991 through 1995’’ and inserting

13 ‘‘$15,000,000 for each of fiscal years 1996 through

14 2002’’.

15 SEC. 819. NATIONAL RESEARCH AND TRAINING CENTEN16 NIAL CENTERS AUTHORIZATION.

17 Section 1448 of the National Agricultural Research,

18 Extension, and Teaching Policy Act of 1977 (7 U.S.C.

19 3222c) is amended—

20 (1) in subsection (a)(1), by inserting ‘‘, or fiscal

21 years 1996 through 2002,’’ after ‘‘1995’’; and

22 (2) in subsection (f), by striking ‘‘1995’’ and

23 inserting ‘‘2002’’.
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1 SEC. 820. GRANTS TO STATES FOR INTERNATIONAL TRADE

2 DEVELOPMENT CENTERS.

3 Section 1458A of the National Agricultural Research,

4 Extension, and Teaching Policy Act of 1977 (7 U.S.C.

5 3292) is repealed.

6 SEC. 821. AGRICULTURAL RESEARCH PROGRAMS.

7 Section 1463 of the National Agricultural Research,

8 Extension, and Teaching Policy Act of 1977 (7 U.S.C.

9 3311) is amended by striking ‘‘1995’’ each place it ap10 pears and inserting ‘‘2002’’.

11 SEC. 822. EXTENSION EDUCATION.

12 Section 1464 of the National Agricultural Research,

13 Extension, and Teaching Policy Act of 1977 (7 U.S.C.

14 3312) is amended by striking ‘‘fiscal year 1995’’ and in15 serting ‘‘each of fiscal years 1995 through 2002’’.

16 SEC. 823. SUPPLEMENTAL AND ALTERNATIVE CROPS RE17 SEARCH.

18 Section 1473D of the National Agricultural Re19 search, Extension, and Teaching Policy Act of 1977 (7

20 U.S.C. 3319d) is amended—

21 (1) in subsection (a)—

22 (A) by striking ‘‘1995’’ and inserting

23 ‘‘2002’’; and

24 (B) by striking ‘‘and pilot’’;

25 (2) in subsection (c)—

26 (A) in paragraph (2)—
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1 (i) in subparagraph (B), by striking

2 ‘‘at pilot sites’’ through ‘‘the area’’; and

3 (ii) in subparagraph (D)—

4 (I) by striking ‘‘near such pilot

5 sites’’; and

6 (II) by striking ‘‘successful pilot

7 program’’ and inserting ‘‘successful

8 program’’;

9 (B) in paragraph (3)—

10 (i) by striking ‘‘pilot’’;

11 (ii) in subparagraph (C), by striking

12 ‘‘and’’ at the end;

13 (iii) in subparagraph (D), by striking

14 the period at the end and inserting a semi15 colon; and

16 (iv) by adding at the end the following:

17 ‘‘(E) to conduct fundamental and applied re18 search related to the development of new commercial

19 products derived from natural plant material for in20 dustrial, medical, and agricultural applications; and

21 ‘‘(F) to participate with colleges and univer22 sities, other Federal agencies, and private sector en23 tities in conducting research described in subpara24 graph (E).’’
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1 SEC. 824. AQUACULTURE ASSISTANCE PROGRAMS.

2 (a) REPORTS.—Section 1475 of the National Agricul3 tural Research, Extension, and Teaching Policy Act of

4 1977 (7 U.S.C. 3322) is amended—

5 (1) by striking subsection (e); and

6 (2) by redesignating subsections (f) and (g) as

7 subsections (e) and (f), respectively.

8 (b) AQUACULTURE RESEARCH FACILITIES.—Section

9 1476(b) of the National Agricultural Research, Extension,

10 and Teaching Policy Act of 1977 (7 U.S.C. 3323(b)) is

11 amended by striking ‘‘1995’’ and inserting ‘‘2002’’.

12 (c) RESEARCH AND EXTENSION.—Section 1477 of

13 the National Agricultural Research, Extension, and

14 Teaching Policy Act of 1977 (7 U.S.C. 3324) is amended

15 by striking ‘‘1995’’ and inserting ‘‘2002’’.

16 SEC. 825. RANGELAND RESEARCH.

17 (a) REPORTS.—Section 1481 of the National Agricul18 tural Research, Extension, and Teaching Policy Act of

19 1977 (7 U.S.C. 3334) is repealed.

20 (b) ADVISORY BOARD.—Section 1482 of the National

21 Agricultural Research, Extension, and Teaching Policy

22 Act of 1977 (7 U.S.C. 3335) is repealed.

23 (c) AUTHORIZATION OF APPROPRIATIONS.—Section

24 1483(a) of the National Agricultural Research, Extension,

25 and Teaching Policy Act of 1977 (7 U.S.C. 3336(a)) is

26 amended by striking ‘‘1995’’ and inserting ‘‘2002’’.
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1 SEC. 826. TECHNICAL AMENDMENTS.

2 The table of contents of the Food and Agriculture

3 Act of 1977 (Public Law 95–113; 91 Stat. 913) is amend4 ed—

5 (1) by striking the item relating to section 1402

6 and inserting the following:

‘‘Sec. 1402. Purposes of agricultural research, extension, and education.’’;

7 (2) by striking the items relating to sections

8 1406, 1407, 1408A, 1432, 1446, 1458A, 1481, and

9 1482;

10 (3) by striking the item relating to section 1408

11 and inserting the following:

‘‘Sec. 1408. National Agricultural Research, Extension, Education, and Economics Advisory Board.’’;

12 (4) by striking the item relating to section 1412

13 and inserting the following:

‘‘Sec. 1412. Support for the Advisory Board.’’;

14 (5) by adding at the end of the items relating

15 to subtitle B of title XIV the following:

‘‘Sec. 1413A. Accountability.

‘‘Sec. 1413B. Imminent or emerging threats to food safety and animal and plant

health.

‘‘Sec. 1413C. Federal Advisory Committee Act exemption for competitive research, extension, and education programs.’’;

16 (6) by striking the item relating to section 1419

17 and inserting the following:

‘‘Sec. 1419. Policy research centers.’’;
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1 (7) by striking the item relating to section 1424

2 and inserting the following:

‘‘Sec. 1424. Human nutrition intervention and health promotion research program.’’;

3 and

4 (8) by striking the item relating to section 1429

5 and inserting the following:

‘‘Sec. 1429. Purposes and findings relating to animal health and disease research.’’.

6 Subtitle B—Amendments to Food,

7 Agriculture, Conservation, and

8 Trade Act of 1990

9 SEC. 831. WATER QUALITY RESEARCH, EDUCATION, AND

10 COORDINATION.

11 (a) IN GENERAL.—Subtitle G of title XIV of the

12 Food, Agriculture, Conservation, and Trade Act of 1990

13 (7 U.S.C. 5501 et seq.) is repealed.

14 (b) CONFORMING AMENDMENTS.—

15 (1) Section 1627(a)(3) of the Food, Agri16 culture, Conservation, and Trade Act of 1990 (7

17 U.S.C. 5821(a)(3)) is amended by striking ‘‘, sub18 title G of title XIV,’’.

19 (2) Section 1628 of the Food, Agriculture, Con20 servation, and Trade Act of 1990 (7 U.S.C. 5831)

21 is amended by striking ‘‘, subtitle G of title XIV,’’

22 each place it appears in subsections (a) and (d).
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1 (3) Section 1629 of the Food, Agriculture, Con2 servation, and Trade Act of 1990 (7 U.S.C. 5832)

3 is amended by striking ‘‘, subtitle G of title XIV,’’

4 each place it appears in subsections (f) and (g)(11).

5 SEC. 832. EDUCATION PROGRAM REGARDING HANDLING

6 OF AGRICULTURAL CHEMICALS AND AGRI7 CULTURAL CHEMICAL CONTAINERS.

8 (a) IN GENERAL.—Section 1499A of the Food, Agri9 culture, Conservation, and Trade Act of 1990 (7 U.S.C.

10 3125c) is repealed.

11 (b) CONFORMING AMENDMENT.—Section 1499(b) of

12 the Food, Agriculture, Conservation, and Trade Act of

13 1990 (7 U.S.C. 5506(b)) is amended by striking ‘‘and sec14 tion 1499A’’.

15 SEC. 833. PROGRAM ADMINISTRATION.

16 (a) IN GENERAL.—Section 1622 of the Food, Agri17 culture, Conservation, and Trade Act of 1990 (7 U.S.C.

18 5812) is amended—

19 (1) by striking subsections (b), (c), and (d); and

20 (2) by redesignating subsection (e) as sub21 section (b).

22 (b) CONFORMING AMENDMENTS.—

23 (1) Section 1619(b) of the Food, Agriculture,

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

25 5801(b)) is amended—
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1 (A) by striking paragraph (7); and

2 (B) by redesignating paragraphs (8), (9),

3 and (10) as paragraphs (7), (8), and (9), re4 spectively.

5 (2) Section 1621(c) of the Food, Agriculture,

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

7 5811(c)) is amended—

8 (A) in paragraph (1)—

9 (i) by striking subparagraph (A); and

10 (ii) by redesignating subparagraphs

11 (B) through (E) as subparagraphs (A)

12 through (D), respectively; and

13 (B) in paragraph (2)—

14 (i) by striking subparagraph (A); and

15 (ii) by redesignating subparagraphs

16 (B) through (F) as subparagraphs (A)

17 through (E), respectively.

18 (3) Section 1622 of the Food, Agriculture, Con19 servation, and Trade Act of 1990 (7 U.S.C. 5812)

20 (as amended by subsection (a)) is further amend21 ed—

22 (A) in subsection (a)—

23 (i) by striking paragraph (2);
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1 (ii) in paragraph (3), by striking

2 ‘‘subsection (e)’’ and inserting ‘‘subsection

3 (b)’’; and

4 (iii) by redesignating paragraphs (3)

5 and (4) as paragraphs (2) and (3), respec6 tively; and

7 (B) in subsection (b)(2)—

8 (i) by striking subparagraph (A); and

9 (ii) by redesignating subparagraphs

10 (B) through (F) as subparagraphs (A)

11 through (E), respectively.

12 (4) Section 1628(b) of the Food, Agriculture,

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

14 5831(b)) is amended by striking ‘‘Advisory Council,

15 the Soil Conservation Service,’’ and inserting ‘‘Natu16 ral Resources Conservation Service’’.

17 SEC. 834. NATIONAL GENETICS RESOURCES PROGRAM.

18 (a) FUNCTIONS.—Section 1632(d) of the Food, Agri19 culture, Conservation, and Trade Act of 1990 (7 U.S.C.

20 5841(d)) is amended by striking paragraph (4) and insert21 ing the following:

22 ‘‘(4) unless otherwise prohibited by law, have

23 the right to make available on request, without

24 charge and without regard to the country from
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1 which the request originates, the genetic material

2 that the program assembles;’’.

3 (b) AUTHORIZATION OF APPROPRIATIONS.—Section

4 1635(b) of the Food, Agriculture, Conservation, and

5 Trade Act of 1990 (7 U.S.C. 5844(b)) is amended by

6 striking ‘‘1995’’ and inserting ‘‘2002’’.

7 SEC. 835. NATIONAL AGRICULTURAL WEATHER INFORMA8 TION SYSTEM.

9 Section 1641(c) of the Food, Agriculture, Conserva10 tion, and Trade Act of 1990 (7 U.S.C. 5855(c)) is amend11 ed by striking ‘‘1995’’ and inserting ‘‘2002’’.

12 SEC. 836. RESEARCH REGARDING PRODUCTION, PREPARA13 TION, PROCESSING, HANDLING, AND STOR14 AGE OF AGRICULTURAL PRODUCTS.

15 Subtitle E of title XVI of the Food, Agriculture, Con16 servation, and Trade Act of 1990 (7 U.S.C. 5871 et seq.)

17 is repealed.

18 SEC. 837. PLANT AND ANIMAL PEST AND DISEASE CONTROL

19 PROGRAM.

20 (a) IN GENERAL.—Subtitle F of title XVI of the

21 Food, Agriculture, Conservation, and Trade Act of 1990

22 (7 U.S.C. 5881) is repealed.

23 (b) CONFORMING AMENDMENTS.—

24 (1) Section 28(b)(2)(A) of the Federal Insecti25 cide, Fungicide, and Rodenticide Act (7 U.S.C.
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1 136w–3(b)(2)(A)) is amended by striking ‘‘and the

2 information required by section 1651 of the Food,

3 Agriculture, Conservation, and Trade Act of 1990’’.

4 (2) Section 1627(a)(3) of the Food, Agri5 culture, Conservation, and Trade Act of 1990 (7

6 U.S.C. 5821(a)(3)) is amended by striking ‘‘and sec7 tion 1650’’.

8 (3) Section 1628 of the Food, Agriculture, Con9 servation, and Trade Act of 1990 (7 U.S.C. 5831)

10 is amended by striking ‘‘section 1650,’’ each place it

11 appears in subsections (a) and (d).

12 (4) Section 1629 of the Food, Agriculture, Con13 servation, and Trade Act of 1990 (7 U.S.C. 5832)

14 is amended by striking ‘‘section 1650,’’ each place it

15 appears in subsections (f) and (g)(11).

16 SEC. 838. LIVESTOCK PRODUCT SAFETY AND INSPECTION

17 PROGRAM.

18 Section 1670(e) of the Food, Agriculture, Conserva19 tion, and Trade Act of 1990 (7 U.S.C. 5923(e)) is amend20 ed by striking ‘‘1995’’ and inserting ‘‘2002’’.

21 SEC. 839. PLANT GENOME MAPPING PROGRAM.

22 Section 1671 of the Food, Agriculture, Conservation,

23 and Trade Act of 1990 (7 U.S.C. 5924) is repealed.
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1 SEC. 840. SPECIALIZED RESEARCH PROGRAMS.

2 Section 1672 of the Food, Agriculture, Conservation,

3 and Trade Act of 1990 (7 U.S.C. 5925) is repealed.

4 SEC. 841. AGRICULTURAL TELECOMMUNICATIONS PRO5 GRAM.

6 Section 1673(h) of the Food, Agriculture, Conserva7 tion, and Trade Act of 1990 (7 U.S.C. 5926(h)) is amend8 ed by striking ‘‘1995’’ and inserting ‘‘2002’’.

9 SEC. 842. NATIONAL CENTERS FOR AGRICULTURAL PROD10 UCT QUALITY RESEARCH.

11 Section 1675(g)(1) of the Food, Agriculture, Con12 servation, and Trade Act of 1990 (7 U.S.C. 5928(g)(1))

13 is amended by striking ‘‘1995’’ and inserting ‘‘2002’’.

14 SEC. 843. TURKEY RESEARCH CENTER AUTHORIZATION.

15 Section 1676 of the Food, Agriculture, Conservation,

16 and Trade Act of 1990 (7 U.S.C. 5929) is repealed.

17 SEC. 844. SPECIAL GRANT TO STUDY CONSTRAINTS ON AG18 RICULTURAL TRADE.

19 Section 1678 of the Food, Agriculture, Conservation,

20 and Trade Act of 1990 (7 U.S.C. 5931) is repealed.

21 SEC. 845. PILOT PROJECT TO COORDINATE FOOD AND NU22 TRITION EDUCATION PROGRAMS.

23 Section 1679 of the Food, Agriculture, Conservation,

24 and Trade Act of 1990 (7 U.S.C. 5932) is repealed.
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1 SEC. 846. ASSISTIVE TECHNOLOGY PROGRAM FOR FARM2 ERS WITH DISABILITIES.

3 Section 1680 of the Food, Agriculture, Conservation,

4 and Trade Act of 1990 (7 U.S.C. 5933) is amended—

5 (1) in subsection (a)(6)(B), by striking ‘‘1996’’

6 and inserting ‘‘2002’’; and

7 (2) in subsection (b)(2), by striking ‘‘1996’’

8 and inserting ‘‘2002’’.

9 SEC. 847. DEMONSTRATION PROJECTS.

10 Section 2348 of the Food, Agriculture, Conservation,

11 and Trade Act of 1990 (7 U.S.C. 2662a) is repealed.

12 SEC. 848. NATIONAL RURAL INFORMATION CENTER CLEAR13 INGHOUSE.

14 Section 2381(e) of the Food, Agriculture, Conserva15 tion, and Trade Act of 1990 (7 U.S.C. 3125b(e)) is

16 amended by striking ‘‘1995’’ and inserting ‘‘2002’’.

17 SEC. 849. GLOBAL CLIMATE CHANGE.

18 (a) TECHNICAL ADVISORY COMMITTEE.—Section

19 2404 of the Food, Agriculture, Conservation, and Trade

20 Act of 1990 (7 U.S.C. 6703) is repealed.

21 (b) AUTHORIZATION OF APPROPRIATIONS.—Section

22 2412 of the Food, Agriculture, Conservation, and Trade

23 Act of 1990 (7 U.S.C. 6710) is amended by striking

24 ‘‘1996’’ and inserting ‘‘2002’’.
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1 SEC. 850. TECHNICAL AMENDMENTS.

2 The table of contents of the Food, Agriculture, Con3 servation, and Trade Act of 1990 (Public Law 101–624;

4 104 Stat. 3359) is amended by striking the items relating

5 to subtitle G of title XIV, section 1499A, subtitles E and

6 F of title XVI, and sections 1671, 1672, 1676, 1678,

7 1679, 2348, and 2404.

8 Subtitle C—Miscellaneous

9 Research Provisions

10 SEC. 861. CRITICAL AGRICULTURAL MATERIALS RE11 SEARCH.

12 (a) IN GENERAL.—Section 4 of the Critical Agricul13 tural Materials Act (7 U.S.C. 178b) is amended—

14 (1) by striking subsection (g); and

15 (2) by redesignating subsection (h) as sub16 section (g).

17 (b) AUTHORIZATION OF APPROPRIATIONS.—Section

18 16(a) of the Critical Agricultural Materials Act (7 U.S.C.

19 178n(a)) is amended by striking ‘‘1995’’ and inserting

20 ‘‘2002’’.

21 SEC. 862. 1994 INSTITUTIONS.

22 (a) LAND-GRANT STATUS.—The first sentence of

23 section 533(b) of the Equity in Educational Land-Grant

24 Status Act of 1994 (Public Law 103–382; 7 U.S.C. 301

25 note) is amended by striking ‘‘2000’’ and inserting

26 ‘‘2002’’.
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1 (b) INSTITUTIONAL CAPACITY BUILDING GRANTS.—

2 Section 535 of the Equity in Educational Land-Grant Sta3 tus Act of 1994 (Public Law 103–382; 7 U.S.C. 301 note)

4 is amended by striking ‘‘2000’’ each place it appears in

5 subsections (b)(1) and (c) and inserting ‘‘2002’’.

6 SEC. 863. SMITH-LEVER ACT FUNDING FOR 1890 LAND7 GRANT COLLEGES, INCLUDING TUSKEGEE

8 UNIVERSITY AND THE DISTRICT OF COLUM9 BIA.

10 (a) ELIGIBILITY FOR FUNDS.—Section 3(d) of the

11 Act of May 8, 1914 (commonly known as the ‘‘Smith12 Lever Act’’) (38 Stat. 373, chapter 79; 7 U.S.C. 343(d)),

13 is amended by adding at the end the following: ‘‘A college

14 or university eligible to receive funds under the Act of Au15 gust 30, 1890 (26 Stat. 417, chapter 841; 7 U.S.C. 321

16 et seq.), including Tuskegee University, or section 208 of

17 the District of Columbia Public Postsecondary Education

18 Reorganization Act (Public Law 93–471; 88 Stat. 1428)

19 may apply for and receive directly from the Secretary of

20 Agriculture—

21 ‘‘(1) amounts made available under this sub22 section after September 30, 1995, to carry out pro23 grams or initiatives for which no funds were made

24 available under this subsection for fiscal year 1995,
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1 or any previous fiscal year, as determined by the

2 Secretary; and

3 ‘‘(2) amounts made available after September

4 30, 1995, to carry out programs or initiatives fund5 ed under this subsection prior to that date that are

6 in excess of the highest amount made available for

7 the programs or initiatives under this subsection for

8 fiscal year 1995, or any previous fiscal year, as de9 termined by the Secretary.’’.

10 (b) CONFORMING AMENDMENTS.—

11 (1) The third sentence of section 1444(a) of the

12 National Agricultural Research, Extension, and

13 Teaching Policy Act of 1977 (7 U.S.C. 3221(a)) is

14 amended by inserting before the period at the end

15 the following: ‘‘, except that for the purpose of this

16 calculation, the total appropriations shall not include

17 amounts made available after September 30, 1995,

18 under section 3(d) of the Act of May 8, 1914 (com19 monly known as the ‘Smith-Lever Act’) (38 Stat.

20 373, chapter 79; 7 U.S.C. 343(d)), to carry out pro21 grams or initiatives for which no funds were made

22 available under section 3(d) of the Act for fiscal year

23 1995, or any previous fiscal year, as determined by

24 the Secretary, and shall not include amounts made

25 available after September 30, 1995, to carry out
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1 programs or initiatives funded under section 3(d) of

2 the Act prior to that date that are in excess of the

3 highest amount made available for the programs or

4 initiatives for fiscal year 1995, or any previous fiscal

5 year, as determined by the Secretary.’’.

6 (2) Section 208(c) of the District of Columbia

7 Public Postsecondary Education Reorganization Act

8 (Public Law 93–471; 88 Stat. 1428) is amended by

9 adding at the end the following: ‘‘Funds appro10 priated under this subsection shall be in addition to

11 any amounts provided to the District of Columbia

12 from—

13 ‘‘(1) amounts made available after September

14 30, 1995, under section 3(d) of the Act to carry out

15 programs or initiatives for which no funds were

16 made available under section 3(d) of the Act for fis17 cal year 1995, or any previous fiscal year, as deter18 mined by the Secretary of Agriculture; and

19 ‘‘(2) amounts made available after September

20 30, 1995, to carry out programs or initiatives fund21 ed under section 3(d) of the Act prior to the date

22 that are in excess of the highest amount made avail23 able for the programs or initiatives for fiscal year

24 1995, or any previous fiscal year, as determined by

25 the Secretary of Agriculture.’’.
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1 SEC. 864. COMMITTEE OF NINE.

2 Section 3(c)(3) of the Act of March 2, 1887 (Chapter

3 314; 7 U.S.C. 361c(c)(3)) is amended by striking from

4 ‘‘, and shall be used’’ through the end of the paragraph

5 and inserting a period.

6 SEC. 865. AGRICULTURAL RESEARCH FACILITIES.

7 (a) IN GENERAL.—

8 (1) RESEARCH FACILITIES.—The Research Fa9 cilities Act (7 U.S.C. 390 et seq.) is amended to

10 read as follows:

11 ‘‘SECTION 1. SHORT TITLE.

12 ‘‘This Act may be cited as the ‘Research Facilities

13 Act’.

14 ‘‘SEC. 2. DEFINITIONS.

15 ‘‘In this Act:

16 ‘‘(1) AGRICULTURAL RESEARCH FACILITY.—

17 The term ‘agricultural research facility’ means a

18 proposed facility for research in food and agricul19 tural sciences for which Federal funds are requested

20 by a college, university, or nonprofit institution to

21 assist in the construction, alteration, acquisition,

22 modernization, renovation, or remodeling of the fa23 cility.

24 ‘‘(2) FOOD AND AGRICULTURAL SCIENCES.—

25 The term ‘food and agricultural sciences’ means—
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1 ‘‘(A) agriculture, including soil and water

2 conservation and use, the use of organic mate3 rials to improve soil tilth and fertility, plant and

4 animal production and protection, and plant

5 and animal health;

6 ‘‘(B) the processing, distributing, market7 ing, and utilization of food and agricultural

8 products;

9 ‘‘(C) forestry, including range manage10 ment, production of forest and range products.

11 multiple use of forest and rangelands, and

12 urban forestry;

13 ‘‘(D) aquaculture (as defined in section

14 1404(3) of the National Agricultural Research,

15 Extension, and Teaching Policy Act of 1977 (7

16 U.S.C. 3103(3));

17 ‘‘(E) human nutrition;

18 ‘‘(F) production inputs, such as energy, to

19 improve productivity; and

20 ‘‘(G) germ plasm collection and preserva21 tion.

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

23 the Secretary of Agriculture.
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1 ‘‘SEC. 3. REVIEW PROCESS.

2 ‘‘(a) SUBMISSION TO SECRETARY.—Each proposal

3 for an agricultural research facility shall be submitted to

4 the Secretary for review. The Secretary shall review the

5 proposals in the order in which the proposals are received.

6 ‘‘(b) APPLICATION PROCESS.—In consultation with

7 the Committee on Appropriations of the Senate and Com8 mittee on Appropriations of the House of Representatives,

9 the Secretary shall establish an application process for the

10 submission of proposals for agricultural research facilities.

11 ‘‘(c) CRITERIA FOR APPROVAL.—

12 ‘‘(1) DETERMINATION BY SECRETARY.—With

13 respect to each proposal for an agricultural research

14 facility submitted under subsection (a), the Sec15 retary shall determine whether the proposal meets

16 the criteria set forth in paragraph (2).

17 ‘‘(2) CRITERIA.—A proposal for an agricultural

18 research facility shall meet the following criteria:

19 ‘‘(A) NON-FEDERAL SHARE.—The proposal

20 shall certify the availability of at least a 50 per21 cent non-Federal share of the cost of the facil22 ity. The non-Federal share shall be paid in cash

23 and may include funding from private sources

24 or from units of State or local government.

25 ‘‘(B) NONDUPLICATION OF FACILITIES.—

26 The proposal shall demonstrate how the agricul-
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1 tural research facility would be complementary

2 to, and not duplicative of, facilities of colleges,

3 universities, and nonprofit institutions, and fa4 cilities of the Agricultural Research Service,

5 within the State and region.

6 ‘‘(C) NATIONAL RESEARCH PRIORITIES.—

7 The proposal shall demonstrate how the agricul8 tural research facility would serve—

9 ‘‘(i) 1 or more of the national re10 search policies and priorities set forth in

11 section 1402 of the National Agricultural

12 Research, Extension, and Teaching Policy

13 Act of 1977 (7 U.S.C. 3101); and

14 ‘‘(ii) regional needs.

15 ‘‘(D) LONG-TERM SUPPORT.—The proposal

16 shall demonstrate that the recipient college,

17 university, or nonprofit institution has the abil18 ity and commitment to support the long-term,

19 ongoing operating costs of—

20 ‘‘(i) the agricultural research facility

21 after the facility is completed; and

22 ‘‘(ii) each program to be based at the

23 facility.

24 ‘‘(E) STRATEGIC PLAN.—After the devel25 opment of the strategic plan required by section
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1 4, the proposal shall demonstrate how the agri2 cultural research facility reflects the strategic

3 plan for Federal research facilities.

4 ‘‘(d) EVALUATION OF PROPOSALS.—Not later than

5 90 days after receiving a proposal under subsection (a),

6 the Secretary shall—

7 ‘‘(1) evaluate and assess the merits of the pro8 posal, including the extent to which the proposal

9 meets the criteria set forth in subsection (c); and

10 ‘‘(2) report to the Committee on Appropriations

11 of the Senate and Committee on Appropriations of

12 the House of Representatives on the results of the

13 evaluation and assessment.

14 ‘‘SEC. 4. STRATEGIC PLAN FOR FEDERAL RESEARCH FA15 CILITIES.

16 ‘‘(a) IN GENERAL.—Not later than September 30,

17 1997, the Secretary shall develop a comprehensive plan

18 for the development, construction, modernization, consoli19 dation, and closure of federally supported agricultural re20 search facilities.

21 ‘‘(b) FACTORS.—In developing the plan, the Sec22 retary shall consider—

23 ‘‘(1) the need to increase agricultural productiv24 ity and to enhance the competitiveness of the United

25 States agriculture and food industry as set forth in
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1 section 1402 of the National Agricultural Research,

2 Extension, and Teaching Policy Act of 1977 (7

3 U.S.C. 3101); and

4 ‘‘(2) the findings of the National Academy of

5 Sciences with respect to programmatic and scientific

6 priorities relating to agriculture.

7 ‘‘(c) IMPLEMENTATION.—The plan shall be developed

8 for implementation over the 10-fiscal year period begin9 ning with fiscal year 1998.

10 ‘‘SEC. 5. APPLICABILITY OF FEDERAL ADVISORY COMMIT11 TEE ACT.

12 ‘‘The Federal Advisory Committee Act (5 U.S.C.

13 App) and title XVIII of the Food and Agriculture Act of

14 1977 (7 U.S.C. 2281 et. seq) shall not apply to a panel

15 or board created solely for the purpose of reviewing appli16 cations or proposals submitted under this Act.

17 ‘‘SEC. 6. AUTHORIZATION OF APPROPRIATIONS.

18 ‘‘(a) IN GENERAL.—Subject to subsection (b), there

19 are authorized to be appropriated such sums as are nec20 essary for fiscal years 1996 through 2002 for the study,

21 plan, design, structure, and related costs of agricultural

22 research facilities under this Act.

23 ‘‘(b) ALLOWABLE ADMINISTRATIVE COSTS.—Not

24 more than 3 percent of the funds made available for any
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1 project for an agricultural research facility shall be avail2 able for administration of the project.’’.

3 (2) APPLICATION.—

4 (A) CURRENT PROJECTS.—The amend5 ment made by paragraph (1), other than sec6 tion 4 of the Research Facilities Act (as amend7 ed by paragraph (1)), shall not apply to any

8 project for an agricultural research facility for

9 which funds have been made available for a fea10 sibility study or for any phase of the project

11 prior to October 1, 1995.

12 (B) STRATEGIC PLAN.—The strategic plan

13 required by section 4 of the Act shall apply to

14 all federally supported agricultural research fa15 cilities, including projects funded prior to the

16 effective date of this title.

17 (b) AUTHORIZATION OF APPROPRIATIONS FOR FED18 ERAL FACILITIES.—Section 1431 of the National Agricul19 tural Research, Extension, and Teaching Policy Act

20 Amendments of 1985 (Public Law 99–198; 99 Stat. 1556)

21 is amended—

22 (1) in subsection (a)—

23 (A) by striking ‘‘(a)’’; and

24 (B) by striking ‘‘1995’’ and inserting

25 ‘‘2002’’; and
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1 (2) by striking subsection (b).

2 (c) CONFORMING AMENDMENT.—Section 1463(a) of

3 the National Agricultural Research, Extension, and

4 Teaching Policy Act of 1977 (7 U.S.C. 3311(a)) is amend5 ed by striking ‘‘1416,’’.

6 SEC. 866. NATIONAL COMPETITIVE RESEARCH INITIATIVE.

7 Subsection (b)(10) of the Competitive, Special, and

8 Facilities Research Grant Act (7 U.S.C. 450i(b)(10)) is

9 amended—

10 (1) by striking ‘‘OF APPROPRIATIONS.—There’’

11 and inserting the following: ‘‘AND AVAILABILITY OF

12 APPROPRIATIONS.—

13 ‘‘(A) IN GENERAL.—There’’;

14 (2) by striking ‘‘fiscal year 1995’’ and inserting

15 ‘‘each of fiscal years 1995 through 2002’’;

16 (3) by striking ‘‘(A) not’’ and inserting the fol17 lowing:

18 ‘‘(i) not’’;

19 (4) by striking ‘‘(B) not’’ and inserting the fol20 lowing:

21 ‘‘(ii) not’’;

22 (5) in clause (ii) (as so designated), by striking

23 ‘‘20 percent’’ and inserting ‘‘40 percent’’;

24 (6) by striking ‘‘(C) not’’ and inserting the fol25 lowing:
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1 ‘‘(iii) not’’;

2 (7) by striking ‘‘(D) not’’ and inserting the fol3 lowing:

4 ‘‘(iv) not’’;

5 (8) by striking ‘‘(E) not’’ and inserting the fol6 lowing:

7 ‘‘(v) not’’; and

8 (9) by adding at the end the following:

9 ‘‘(B) AVAILABILITY.—Funds made avail10 able under subparagraph (A) shall be available

11 for obligation for a period of 2 years from the

12 beginning of the fiscal year for which the funds

13 are made available.’’.

14 SEC. 867. COTTON CROP REPORTS.

15 The Act of May 3, 1924 (43 Stat. 115, chapter 149;

16 7 U.S.C. 475), is repealed.

17 SEC. 868. RURAL DEVELOPMENT RESEARCH AND EDU18 CATION.

19 Section 502 of the Rural Development Act of 1972

20 (7 U.S.C. 2662) is amended—

21 (1) in subsection (a), by inserting after the first

22 sentence the following: ‘‘The rural development ex23 tension programs shall also promote coordinated and

24 integrated rural community initiatives that advance

25 and empower capacity building through leadership
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1 development, entrepreneurship, business development

2 and management training and strategic planning to

3 increase jobs, income, and quality of life in rural

4 communities.’’;

5 (2) by striking subsections (g) and (j); and

6 (3) by redesignating subsections (h) and (i) as

7 subsections (g) and (h) respectively.

8 SEC. 869. HUMAN NUTRITION RESEARCH.

9 Section 1452 of the National Agricultural Research,

10 Extension, and Teaching Policy Act Amendments of 1985

11 (Public Law 99–198; 7 U.S.C. 3173 note) is repealed.

12 SEC. 870. DAIRY GOAT RESEARCH PROGRAM.

13 Section 1432 of the National Agricultural Research,

14 Extension, and Teaching Policy Act Amendments of 1981

15 (Public Law 97–98; 7 U.S.C. 3222 note) is amended—

16 (1) in subsection (a), by striking ‘‘(a)’’; and

17 (2) by striking subsection (b).

18 SEC. 871. GRANTS TO UPGRADE 1890 LAND-GRANT COL19 LEGE EXTENSION FACILITIES.

20 (a) IN GENERAL.—Section 1416 of the Food Security

21 Act of 1985 (7 U.S.C. 3224) is repealed.

22 (b) TECHNICAL AMENDMENT.—The table of contents

23 of the Food Security Act of 1985 (Public Law 99–198;

24 99 Stat. 1354) is amended by striking the item relating

25 to section 1416.
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1 SEC. 872. STUTTGART NATIONAL AQUACULTURE RE2 SEARCH CENTER.

3 (a) TRANSFER OF FUNCTIONS TO THE SECRETARY

4 OF AGRICULTURE.—

5 (1) TITLE OF PUBLIC LAW 85–342.—The title of

6 Public Law 85–342 (16 U.S.C. 778 et seq.) is

7 amended by striking ‘‘Secretary of the Interior’’ and

8 inserting ‘‘Secretary of Agriculture’’.

9 (2) AUTHORIZATION.—The first section of Pub10 lic Law 85–342 (16 U.S.C. 778) is amended—

11 (A) by striking ‘‘Secretary of the Interior’’

12 and all that follows through ‘‘directed to’’ and

13 inserting ‘‘Secretary of Agriculture shall’’;

14 (B) by striking ‘‘station and stations’’ and

15 inserting ‘‘1 or more centers’’; and

16 (C) in paragraph (5), by striking ‘‘Depart17 ment of Agriculture’’ and inserting ‘‘Secretary

18 of the Interior’’.

19 (3) AUTHORITY.—Section 2 of Public Law 85–

20 342 (16 U.S.C. 778a) is amended by striking ‘‘, the

21 Secretary’’ and all that follows through ‘‘authorized’’

22 and inserting ‘‘, the Secretary of Agriculture is au23 thorized’’.

24 (4) ASSISTANCE.—Section 3 of Public Law 85–

25 342 (16 U.S.C. 778b) is amended—
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1 (A) by striking ‘‘Secretary of the Interior’’

2 and inserting ‘‘Secretary of Agriculture’’; and

3 (B) by striking ‘‘Department of Agri4 culture’’ and inserting ‘‘Secretary of the Inte5 rior’’.

6 (b) TRANSFER OF FISH FARMING EXPERIMENTAL

7 LABORATORY TO DEPARTMENT OF AGRICULTURE.—

8 (1) DESIGNATION OF STUTTGART NATIONAL

9 AQUACULTURE RESEARCH CENTER.—

10 (A) IN GENERAL.—The Fish Farming Ex11 perimental Laboratory in Stuttgart, Arkansas

12 (including the facilities in Kelso, Arkansas),

13 shall be known and designated as the ‘‘Stutt14 gart National Aquaculture Research Center’’.

15 (B) REFERENCES.—Any reference in a

16 law, map, regulation, document, paper, or other

17 record of the United States to the laboratory

18 referred to in subparagraph (A) shall be

19 deemed to be a reference to the ‘‘Stuttgart Na20 tional Aquaculture Research Center’’.

21 (2) TRANSFER OF LABORATORY TO THE DE22 PARTMENT OF AGRICULTURE.—Subject to section

23 1531 of title 31, United States Code, not later than

24 90 days after the effective date of this title, there

25 are transferred to the Department of Agriculture—
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1 (A) the personnel employed in connection

2 with the laboratory referred to in paragraph

3 (1);

4 (B) the assets, liabilities, contracts, and

5 real and personal property of the laboratory;

6 (C) the records of the laboratory; and

7 (D) the unexpended balance of appropria8 tions, authorizations, allocations and other

9 funds employed, held, arising from, available to,

10 or to be made available in connection with the

11 laboratory.

12 (3) NONDUPLICATION.—The research center re13 ferred to in paragraph (1)(A) shall be complemen14 tary to, and not duplicative of, facilities of colleges,

15 universities, and nonprofit institutions, and facilities

16 of the Agricultural Research Service, within the

17 State and region, as determined by the Adminis18 trator of the Service.

19 SEC. 873. NATIONAL AQUACULTURE POLICY, PLANNING,

20 AND DEVELOPMENT.

21 (a) DEFINITIONS.—Section 3 of the National Aqua22 culture Act of 1980 (16 U.S.C. 2802) is amended—

23 (1) in paragraph (1), by striking ‘‘the propaga24 tion’’ and all that follows through the period at the

25 end and inserting the following: ‘‘the commercially
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1 controlled cultivation of aquatic plants, animals, and

2 microorganisms, but does not include private for3 profit ocean ranching of Pacific salmon in a State

4 in which the ranching is prohibited by law.’’;

5 (2) in paragraph (3), by striking ‘‘or aquatic

6 plant’’ and inserting ‘‘aquatic plant, or microorga7 nism’’;

8 (3) by redesignating paragraphs (7) through

9 (9) as paragraphs (8) through (10), respectively;

10 and

11 (4) by inserting after paragraph (6) the follow12 ing:

13 ‘‘(7) The term ‘private aquaculture’ means the

14 commercially controlled cultivation of aquatic plants,

15 animals, and microorganisms other than cultivation

16 carried out by the Federal Government, any State or

17 local government, or an Indian tribe recognized by

18 the Bureau of Indian Affairs.’’.

19 (b) NATIONAL AQUACULTURE DEVELOPMENT

20 PLAN.—Section 4 of the National Aquaculture Act of

21 1980 (16 U.S.C. 2803) is amended—

22 (1) in subsection (c)—

23 (A) in subparagraph (A), by adding ‘‘and’’

24 at the end;
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1 (B) in subparagraph (B), by striking ‘‘;

2 and’’ and inserting a period; and

3 (C) by striking subparagraph (C);

4 (2) in the second sentence of subsection (d), by

5 striking ‘‘Secretaries determine that’’ and inserting

6 ‘‘Secretary, in consultation with the Secretary of

7 Commerce, the Secretary of the Interior, and the

8 heads of such other agencies as the Secretary deter9 mines are appropriate, determines that’’; and

10 (3) in subsection (e), by striking ‘‘Secretaries’’

11 and inserting ‘‘Secretary, in consultation with the

12 Secretary of Commerce, the Secretary of the Inte13 rior, and the heads of such other agencies as the

14 Secretary determines are appropriate,’’.

15 (c) FUNCTIONS AND POWERS OF SECRETARIES.—

16 Section 5(b)(3) of the National Aquaculture Act of 1980

17 (16 U.S.C. 2804(b)(3)) is amended by striking ‘‘Secretar18 ies deem’’ and inserting ‘‘Secretary, in consultation with

19 the Secretary of Commerce, the Secretary of the Interior,

20 and the heads of such other agencies as the Secretary de21 termines are appropriate, consider’’.

22 (d) COORDINATION OF NATIONAL ACTIVITIES RE23 GARDING AQUACULTURE.—The first sentence of section

24 6(a) of the National Aquaculture Act of 1980 (16 U.S.C.

25 2805(a)) is amended by striking ‘‘(f)’’ and inserting ‘‘(e)’’.
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1 (e) NATIONAL POLICY FOR PRIVATE AQUA2 CULTURE.—The National Aquaculture Act of 1980 (16

3 U.S.C. 2801 et seq.) is amended—

4 (1) by redesignating sections 7, 8, 9, 10, and

5 11 as sections 8, 9, 10, 11, and 12, respectively; and

6 (2) by inserting after section 6 (16 U.S.C.

7 2805) the following:

8 ‘‘SEC. 7. NATIONAL POLICY FOR PRIVATE AQUACULTURE.

9 ‘‘(a) IN GENERAL.—In consultation with the Sec10 retary of Commerce and the Secretary of the Interior, the

11 Secretary shall coordinate and implement a national policy

12 for private aquaculture in accordance with this section. In

13 developing the policy, the Secretary may consult with

14 other agencies and organizations.

15 ‘‘(b) DEPARTMENT OF AGRICULTURE AQUACULTURE

16 PLAN.—

17 ‘‘(1) IN GENERAL.—The Secretary shall develop

18 and implement a Department of Agriculture Aqua19 culture Plan (referred to in this section as the ‘De20 partment plan’) for a unified aquaculture program

21 of the Department of Agriculture (referred to in this

22 section as the ‘Department’) to support the develop23 ment of private aquaculture.

24 ‘‘(2) ELEMENTS OF DEPARTMENT PLAN.—The

25 Department plan shall address—
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1 ‘‘(A) programs of individual agencies of

2 the Department related to aquaculture that are

3 consistent with Department programs related to

4 other areas of agriculture, including livestock,

5 crops, products, and commodities under the ju6 risdiction of agencies of the Department;

7 ‘‘(B) the treatment of cultivated aquatic

8 animals as livestock and cultivated aquatic

9 plants as agricultural crops; and

10 ‘‘(C) means for effective coordination and

11 implementation of aquaculture activities and

12 programs within the Department, including in13 dividual agency commitments of personnel and

14 resources.

15 ‘‘(c) NATIONAL AQUACULTURE INFORMATION CEN16 TER.—In carrying out section 5, the Secretary may main17 tain and support a National Aquaculture Information

18 Center at the National Agricultural Library as a reposi19 tory for information on national and international aqua20 culture.

21 ‘‘(d) TREATMENT OF AQUACULTURE.—The Sec22 retary shall treat—

23 ‘‘(1) private aquaculture as agriculture; and

24 ‘‘(2) commercially cultivated aquatic animals,

25 plants, and microorganisms, and products of the ani-
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1 mals, plants, and microorganisms, produced by pri2 vate persons and transported or moved in standard

3 commodity channels as agricultural livestock, crops,

4 and commodities.

5 ‘‘(e) PRIVATE AQUACULTURE POLICY COORDINA6 TION, DEVELOPMENT, AND IMPLEMENTATION.—

7 ‘‘(1) RESPONSIBILITY.—The Secretary shall

8 have responsibility for coordinating, developing, and

9 carrying out policies and programs for private aqua10 culture.

11 ‘‘(2) DUTIES.—The Secretary shall—

12 ‘‘(A) coordinate all intradepartmental func13 tions and activities relating to private aqua14 culture; and

15 ‘‘(B) establish procedures for the coordina16 tion of functions, and consultation with, the co17 ordinating group.

18 ‘‘(f) LIAISON WITH DEPARTMENTS OF COMMERCE

19 AND THE INTERIOR.—The Secretary of Commerce and

20 the Secretary of the Interior shall each designate an offi21 cer or employee of the Department of the Secretary to be

22 the liaison of the Department to the Secretary of Agri23 culture.’’.

24 (f) AUTHORIZATION OF APPROPRIATIONS.—Section

25 11 of the National Aquaculture Act of 1980 (as redesig-
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1 nated by subsection (e)(1)) is amended by striking ‘‘the

2 fiscal years 1991, 1992, and 1993’’ each place it appears

3 and inserting ‘‘fiscal years 1991 through 2002’’.

4 SEC. 874. EXPANSION OF AUTHORITIES RELATED TO THE

5 NATIONAL ARBORETUM.

6 (a) SOLICITATION OF GIFTS, BENEFITS, AND DE7 VISES.—The first sentence of section 5 of the Act of

8 March 4, 1927 (89 Stat. 683; 20 U.S.C. 195), is amended

9 by inserting ‘‘solicit,’’ after ‘‘authorized to’’.

10 (b) CONCESSIONS, FEES, AND VOLUNTARY SERV11 ICES.—The Act of March 4, 1927 (44 Stat. 1422, chapter

12 505; 20 U.S.C. 191 et seq.), is amended by adding at the

13 end the following:

14 ‘‘SEC. 6. CONCESSIONS, FEES, AND VOLUNTARY SERVICES.

15 ‘‘(a) IN GENERAL.—Notwithstanding the Federal

16 Property and Administrative Services Act of 1949 (40

17 U.S.C. 471 et seq.) and section 321 of the Act of June

18 30, 1932 (47 Stat. 412, chapter 314; 40 U.S.C. 303b),

19 the Secretary of Agriculture, in furtherance of the mission

20 of the National Arboretum, may—

21 ‘‘(1) negotiate agreements granting concessions

22 at the National Arboretum to nonprofit scientific or

23 educational organizations the interests of which are

24 complementary to the mission of the National Arbo25 retum, except that the net proceeds of the organiza-
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1 tions from the concessions shall be used exclusively

2 for research and educational work for the benefit of

3 the National Arboretum;

4 ‘‘(2) provide by concession, on such terms as

5 the Secretary of Agriculture considers appropriate

6 and necessary, for commercial services for food,

7 drink, and nursery sales, if an agreement for a per8 manent concession under this paragraph is nego9 tiated with a qualified person submitting a proposal

10 after due consideration of all proposals received after

11 the Secretary of Agriculture provides reasonable

12 public notice of the intent of the Secretary to enter

13 into such an agreement;

14 ‘‘(3) dispose of excess property, including excess

15 plants and fish, in a manner designed to maximize

16 revenue from any sale of the property, including by

17 way of public auction, except that this paragraph

18 shall not apply to the free dissemination of new vari19 eties of seeds and germ plasm in accordance with

20 section 520 of the Revised Statutes (commonly

21 known as the ‘Department of Agriculture Organic

22 Act of 1862’) (7 U.S.C. 2201);

23 ‘‘(4) charge such fees as the Secretary of Agri24 culture considers reasonable for temporary use by

25 individuals or groups of National Arboretum facili-
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1 ties and grounds for any purpose consistent with the

2 mission of the National Arboretum;

3 ‘‘(5) charge such fees as the Secretary of Agri4 culture considers reasonable for the use of the Na5 tional Arboretum for commercial photography or

6 cinematography;

7 ‘‘(6) publish, in print and electronically and

8 without regard to laws relating to printing by the

9 Federal Government, informational brochures,

10 books, and other publications concerning the Na11 tional Arboretum or the collections of the Arbore12 tum; and

13 ‘‘(7) license use of the National Arboretum

14 name and logo for public service or commercial uses.

15 ‘‘(b) USE OF FUNDS.—Any funds received or col16 lected by the Secretary of Agriculture as a result of activi17 ties described in subsection (a) shall be retained in a spe18 cial fund in the Treasury for the use and benefit of the

19 National Arboretum as the Secretary of Agriculture con20 siders appropriate.

21 ‘‘(c) ACCEPTANCE OF VOLUNTARY SERVICES.—The

22 Secretary of Agriculture may accept the voluntary services

23 of organizations described in subsection (a)(1), and the

24 voluntary services of individuals (including employees of
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1 the National Arboretum), for the benefit of the National

2 Arboretum.’’.

3 SEC. 875. STUDY OF AGRICULTURAL RESEARCH SERVICE.

4 (a) STUDY.—The Secretary of Agriculture shall re5 quest the National Academy of Sciences to conduct a

6 study of the role and mission of the Agricultural Research

7 Service. The study shall—

8 (1) evaluate the strength of science of the Serv9 ice and the relevance of the science to national prior10 ities;

11 (2) examine how the work of the Service relates

12 to the capacity of the United States agricultural re13 search, education, and extension system overall; and

14 (3) include recommendations, as appropriate.

15 (b) REPORT.—Not later than 18 months after the ef16 fective date of this title, the Secretary shall prepare a re17 port that describes the results of the study conducted

18 under subsection (a) and submit the report to the Commit19 tee on Agriculture of the House of Representatives and

20 the Committee on Agriculture, Nutrition, and Forestry of

21 the Senate.

22 (c) FUNDING.—The Secretary shall use to carry out

23 this section not more than $500,000 of funds made avail24 able to the Agricultural Research Service for research.
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1 SEC. 876. LABELING OF DOMESTIC AND IMPORTED LAMB

2 AND MUTTON.

3 Section 7 of the Federal Meat Inspection Act (21

4 U.S.C. 607) is amended by adding at the end the follow5 ing:

6 ‘‘(f) LAMB AND MUTTON.—

7 ‘‘(1) STANDARDS.—The Secretary, consistent

8 with United States international obligations, shall

9 establish standards for the labeling of sheep car10 casses, parts of carcasses, meat, and meat food

11 products as ‘lamb’ or ‘mutton’.

12 ‘‘(2) METHOD.—The standards under para13 graph (1) shall be based on the use of the break or

14 spool joint method to differentiate lamb from mutton

15 by the degree of calcification of bone to reflect matu16 rity.’’.

17 SEC. 877. SENSE OF SENATE.

18 It is the sense of the Senate that the Department

19 of Agriculture should continue to make methyl bromide

20 alternative research and extension activities a high priority

21 of the Department: Provided, That it is the sense of the

22 Senate that the Department of Agriculture, the Environ23 mental Protection Agency, producer and processor organi24 zations, environmental organizations, and State agencies

25 continue their dialogue on the risks and benefits of extend26 ing the 2001 phaseout deadline.
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1 TITLE IX—AGRICULTURAL

2 PROMOTION

3 Subtitle A—Popcorn

4 SEC. 901. SHORT TITLE.

5 This subtitle may be cited as the ‘‘Popcorn Pro6 motion, Research, and Consumer Information Act’’.

7 SEC. 902. FINDINGS AND DECLARATION OF POLICY.

8 (a) FINDINGS.—Congress finds that—

9 (1) popcorn is an important food that is a valu10 able part of the human diet;

11 (2) the production and processing of popcorn

12 plays a significant role in the economy of the United

13 States in that popcorn is processed by several pop14 corn processors, distributed through wholesale and

15 retail outlets, and consumed by millions of people

16 throughout the United States and foreign countries;

17 (3) popcorn must be of high quality, readily

18 available, handled properly, and marketed efficiently

19 to ensure that the benefits of popcorn are available

20 to the people of the United States;

21 (4) the maintenance and expansion of existing

22 markets and uses and the development of new mar23 kets and uses for popcorn are vital to the welfare of

24 processors and persons concerned with marketing,
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1 using, and producing popcorn for the market, as well

2 as to the agricultural economy of the United States;

3 (5) the cooperative development, financing, and

4 implementation of a coordinated program of popcorn

5 promotion, research, consumer information, and in6 dustry information is necessary to maintain and ex7 pand markets for popcorn; and

8 (6) popcorn moves in interstate and foreign

9 commerce, and popcorn that does not move in those

10 channels of commerce directly burdens or affects

11 interstate commerce in popcorn.

12 (b) POLICY.—It is the policy of Congress that it is

13 in the public interest to authorize the establishment,

14 through the exercise of the powers provided in this sub15 title, of an orderly procedure for developing, financing

16 (through adequate assessments on unpopped popcorn

17 processed domestically), and carrying out an effective,

18 continuous, and coordinated program of promotion, re19 search, consumer information, and industry information

20 designed to—

21 (1) strengthen the position of the popcorn in22 dustry in the marketplace; and

23 (2) maintain and expand domestic and foreign

24 markets and uses for popcorn.
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1 (c) PURPOSES.—The purposes of this subtitle are

2 to—

3 (1) maintain and expand the markets for all

4 popcorn products in a manner that—

5 (A) is not designed to maintain or expand

6 any individual share of a producer or processor

7 of the market;

8 (B) does not compete with or replace indi9 vidual advertising or promotion efforts designed

10 to promote individual brand name or trade

11 name popcorn products; and

12 (C) authorizes and funds programs that

13 result in government speech promoting govern14 ment objectives; and

15 (2) establish a nationally coordinated program

16 for popcorn promotion, research, consumer informa17 tion, and industry information.

18 (d) STATUTORY CONSTRUCTION.—This subtitle

19 treats processors equitably. Nothing in this subtitle—

20 (1) provides for the imposition of a trade bar21 rier to the entry into the United States of imported

22 popcorn for the domestic market; or

23 (2) provides for the control of production or

24 otherwise limits the right of any individual processor

25 to produce popcorn.
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1 SEC. 903. DEFINITIONS.

2 In this subtitle (except as otherwise specifically pro3 vided):

4 (1) BOARD.—The term ‘‘Board’’ means the

5 Popcorn Board established under section 905(b).

6 (2) COMMERCE.—The term ‘‘commerce’’ means

7 interstate, foreign, or intrastate commerce.

8 (3) CONSUMER INFORMATION.—The term

9 ‘‘consumer information’’ means information and pro10 grams that will assist consumers and other persons

11 in making evaluations and decisions regarding the

12 purchase, preparation, and use of popcorn.

13 (4) DEPARTMENT.—The term ‘‘Department’’

14 means the Department of Agriculture.

15 (5) INDUSTRY INFORMATION.—The term ‘‘in16 dustry information’’ means information and pro17 grams that will lead to the development of—

18 (A) new markets, new marketing strate19 gies, or increased efficiency for the popcorn in20 dustry; or

21 (B) activities to enhance the image of the

22 popcorn industry.

23 (6) MARKETING.—The term ‘‘marketing’’

24 means the sale or other disposition of unpopped pop25 corn for human consumption in a channel of com-
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1 merce, but does not include a sale or disposition to

2 or between processors.

3 (7) ORDER.—The term ‘‘order’’ means an order

4 issued under section 904.

5 (8) PERSON.—The term ‘‘person’’ means an in6 dividual, group of individuals, partnership, corpora7 tion, association, or cooperative, or any other legal

8 entity.

9 (9) POPCORN.—The term ‘‘popcorn’’ means

10 unpopped popcorn (Zea Mays L) that is—

11 (A) commercially grown;

12 (B) processed in the United States by

13 shelling, cleaning, or drying; and

14 (C) introduced into a channel of commerce.

15 (10) PROCESS.—The term ‘‘process’’ means to

16 shell, clean, dry, and prepare popcorn for the mar17 ket, but does not include packaging popcorn for the

18 market without also engaging in another activity de19 scribed in this paragraph.

20 (11) PROCESSOR.—The term ‘‘processor’’

21 means a person engaged in the preparation of

22 unpopped popcorn for the market who owns or

23 shares the ownership and risk of loss of the popcorn

24 and who processes and distributes over 4,000,000

25 pounds of popcorn in the market per year.
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1 (12) PROMOTION.—The term ‘‘promotion’’

2 means an action, including paid advertising, to en3 hance the image or desirability of popcorn.

4 (13) RESEARCH.—The term ‘‘research’’ means

5 any type of study to advance the image, desirability,

6 marketability, production, product development,

7 quality, or nutritional value of popcorn.

8 (14) SECRETARY.—The term ‘‘Secretary’’

9 means the Secretary of Agriculture.

10 (15) STATE.—The term ‘‘State’’ means each of

11 the 50 States and the District of Columbia.

12 (16) UNITED STATES.—The term ‘‘United

13 States’’ means all of the States.

14 SEC. 904. ISSUANCE OF ORDERS.

15 (a) IN GENERAL.—To effectuate the policy described

16 in section 902(b), the Secretary, subject to subsection (b),

17 shall issue 1 or more orders applicable to processors. An

18 order shall be applicable to all popcorn production and

19 marketing areas in the United States. Not more than 1

20 order shall be in effect under this subtitle at any 1 time.

21 (b) PROCEDURE.—

22 (1) PROPOSAL OR REQUEST FOR ISSUANCE.—

23 The Secretary may propose the issuance of an order,

24 or an association of processors or any other person
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1 that would be affected by an order may request the

2 issuance of, and submit a proposal for, an order.

3 (2) NOTICE AND COMMENT CONCERNING PRO4 POSED ORDER.—Not later than 60 days after the re5 ceipt of a request and proposal for an order under

6 paragraph (1), or at such time as the Secretary de7 termines to propose an order, the Secretary shall

8 publish a proposed order and give due notice and op9 portunity for public comment on the proposed order.

10 (3) ISSUANCE OF ORDER.—After notice and op11 portunity for public comment under paragraph (2),

12 the Secretary shall issue an order, taking into con13 sideration the comments received and including in

14 the order such provisions as are necessary to ensure

15 that the order conforms to this subtitle. The order

16 shall be issued and become effective not later than

17 150 days after the date of publication of the pro18 posed order.

19 (c) AMENDMENTS.—The Secretary, as appropriate,

20 may amend an order. The provisions of this subtitle appli21 cable to an order shall be applicable to any amendment

22 to an order, except that an amendment to an order may

23 not require a referendum to become effective.
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1 SEC. 905. REQUIRED TERMS IN ORDERS.

2 (a) IN GENERAL.—An order shall contain the terms

3 and conditions specified in this section.

4 (b) ESTABLISHMENT AND MEMBERSHIP OF POP5 CORN BOARD.—

6 (1) IN GENERAL.—The order shall provide for

7 the establishment of, and appointment of members

8 to, a Popcorn Board that shall consist of not fewer

9 than 4 members and not more than 9 members.

10 (2) NOMINATIONS.—The members of the Board

11 shall be processors appointed by the Secretary from

12 nominations submitted by processors in a manner

13 authorized by the Secretary, subject to paragraph

14 (3). Not more than 1 member may be appointed to

15 the Board from nominations submitted by any 1

16 processor.

17 (3) GEOGRAPHICAL DIVERSITY.—In making ap18 pointments, the Secretary shall take into account, to

19 the extent practicable, the geographical distribution

20 of popcorn production throughout the United States.

21 (4) TERMS.—The term of appointment of each

22 member of the Board shall be 3 years, except that

23 the members appointed to the initial Board shall

24 serve, proportionately, for terms of 2, 3, and 4

25 years, as determined by the Secretary.
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1 (5) COMPENSATION AND EXPENSES.—A mem2 ber of the Board shall serve without compensation,

3 but shall be reimbursed for the expenses of the

4 member incurred in the performance of duties for

5 the Board.

6 (c) POWERS AND DUTIES OF BOARD.—The order

7 shall define the powers and duties of the Board, which

8 shall include the power and duty—

9 (1) to administer the order in accordance with

10 the terms and provisions of the order;

11 (2) to make regulations to effectuate the terms

12 and provisions of the order;

13 (3) to appoint members of the Board to serve

14 on an executive committee;

15 (4) to propose, receive, evaluate, and approve

16 budgets, plans, and projects of promotion, research,

17 consumer information, and industry information,

18 and to contract with appropriate persons to imple19 ment the plans or projects;

20 (5) to accept and receive voluntary contribu21 tions, gifts, and market promotion or similar funds;

22 (6) to invest, pending disbursement under a

23 plan or project, funds collected through assessments

24 authorized under subsection (f), only in—
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1 (A) obligations of the United States or an

2 agency of the United States;

3 (B) general obligations of a State or a po4 litical subdivision of a State;

5 (C) an interest-bearing account or certifi6 cate of deposit of a bank that is a member of

7 the Federal Reserve System; or

8 (D) obligations fully guaranteed as to prin9 cipal and interest by the United States;

10 (7) to receive, investigate, and report to the

11 Secretary complaints of violations of the order; and

12 (8) to recommend to the Secretary amendments

13 to the order.

14 (d) PLANS AND BUDGETS.—

15 (1) IN GENERAL.—The order shall provide that

16 the Board shall submit to the Secretary for approval

17 any plan or project of promotion, research, consumer

18 information, or industry information.

19 (2) BUDGETS.—The order shall require the

20 Board to submit to the Secretary for approval budg21 ets on a fiscal year basis of the anticipated expenses

22 and disbursements of the Board in the implementa23 tion of the order, including projected costs of plans

24 and projects of promotion, research, consumer infor25 mation, and industry information.
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1 (e) CONTRACTS AND AGREEMENTS.—

2 (1) IN GENERAL.—The order shall provide that

3 the Board may enter into contracts or agreements

4 for the implementation and carrying out of plans or

5 projects of promotion, research, consumer informa6 tion, or industry information, including contracts

7 with a processor organization, and for the payment

8 of the cost of the plans or projects with funds col9 lected by the Board under the order.

10 (2) REQUIREMENTS.—A contract or agreement

11 under paragraph (1) shall provide that—

12 (A) the contracting party shall develop and

13 submit to the Board a plan or project, together

14 with a budget that shows the estimated costs to

15 be incurred for the plan or project;

16 (B) the plan or project shall become effec17 tive on the approval of the Secretary; and

18 (C) the contracting party shall keep accu19 rate records of each transaction of the party,

20 account for funds received and expended, make

21 periodic reports to the Board of activities con22 ducted, and make such other reports as the

23 Board or the Secretary may require.

24 (3) PROCESSOR ORGANIZATIONS.—The order

25 shall provide that the Board may contract with proc-
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1 essor organizations for any other services. The con2 tract shall include provisions comparable to the pro3 visions required by paragraph (2).

4 (f) ASSESSMENTS.—

5 (1) PROCESSORS.—The order shall provide that

6 each processor marketing popcorn in the United

7 States or for export shall, in the manner prescribed

8 in the order, pay assessments and remit the assess9 ments to the Board.

10 (2) DIRECT MARKETERS.—A processor that

11 markets popcorn produced by the processor directly

12 to consumers shall pay and remit the assessments on

13 the popcorn directly to the Board in the manner pre14 scribed in the order.

15 (3) RATE.—

16 (A) IN GENERAL.—The rate of assessment

17 prescribed in the order shall be a rate estab18 lished by the Board but not more than $.08 per

19 hundredweight of popcorn.

20 (B) ADJUSTMENT OF RATE.—The order

21 shall provide that the Board, with the approval

22 of the Secretary, may raise or lower the rate of

23 assessment annually up to a maximum of $.08

24 per hundredweight of popcorn.

25 (4) USE OF ASSESSMENTS.—
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1 (A) IN GENERAL.—Subject to subpara2 graphs (B) and (C) and subsection (c)(5), the

3 order shall provide that the assessments col4 lected shall be used by the Board—

5 (i) to pay expenses incurred in imple6 menting and administering the order, with

7 provision for a reasonable reserve; and

8 (ii) to cover such administrative costs

9 as are incurred by the Secretary, except

10 that the administrative costs incurred by

11 the Secretary (other than any legal ex12 penses incurred to defend and enforce the

13 order) that may be reimbursed by the

14 Board may not exceed 15 percent of the

15 projected annual revenues of the Board.

16 (B) EXPENDITURES BASED ON SOURCE OF

17 ASSESSMENTS.—In implementing plans and

18 projects of promotion, research, consumer infor19 mation, and industry information, the Board

20 shall expend funds on—

21 (i) plans and projects for popcorn

22 marketed in the United States or Canada

23 in proportion to the amount of assessments

24 collected on domestically marketed pop25 corn; and
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1 (ii) plans and projects for exported

2 popcorn in proportion to the amount of as3 sessments collected on exported popcorn.

4 (C) NOTIFICATION.—If the administrative

5 costs incurred by the Secretary that are reim6 bursed by the Board exceed 10 percent of the

7 projected annual revenues of the Board, the

8 Secretary shall notify as soon as practicable the

9 Committee on Agriculture of the House of Rep10 resentatives and the Committee on Agriculture,

11 Nutrition, and Forestry of the Senate.

12 (g) PROHIBITION ON USE OF FUNDS.—The order

13 shall prohibit any funds collected by the Board under the

14 order from being used to influence government action or

15 policy, other than the use of funds by the Board for the

16 development and recommendation to the Secretary of

17 amendments to the order.

18 (h) BOOKS AND RECORDS OF THE BOARD.—The

19 order shall require the Board to—

20 (1) maintain such books and records (which

21 shall be available to the Secretary for inspection and

22 audit) as the Secretary may prescribe;

23 (2) prepare and submit to the Secretary, from

24 time to time, such reports as the Secretary may pre25 scribe; and
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1 (3) account for the receipt and disbursement of

2 all funds entrusted to the Board.

3 (i) BOOKS AND RECORDS OF PROCESSORS.—

4 (1) MAINTENANCE AND REPORTING OF INFOR5 MATION.—The order shall require that each proc6 essor of popcorn for the market shall—

7 (A) maintain, and make available for in8 spection, such books and records as are re9 quired by the order; and

10 (B) file reports at such time, in such man11 ner, and having such content as is prescribed in

12 the order.

13 (2) USE OF INFORMATION.—The Secretary

14 shall authorize the use of information regarding

15 processors that may be accumulated under a law or

16 regulation other than this subtitle or a regulation is17 sued under this subtitle. The information shall be

18 made available to the Secretary as appropriate for

19 the administration or enforcement of this subtitle,

20 the order, or any regulation issued under this sub21 title.

22 (3) CONFIDENTIALITY.—

23 (A) IN GENERAL.—Subject to subpara24 graphs (B), (C), and (D), all information ob25 tained by the Secretary under paragraphs (1)
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1 and (2) shall be kept confidential by all officers,

2 employees, and agents of the Board and the

3 Department.

4 (B) DISCLOSURE BY SECRETARY.—Infor5 mation referred to in subparagraph (A) may be

6 disclosed if—

7 (i) the Secretary considers the infor8 mation relevant;

9 (ii) the information is revealed in a

10 suit or administrative hearing brought at

11 the request of the Secretary, or to which

12 the Secretary or any officer of the United

13 States is a party; and

14 (iii) the information relates to the

15 order.

16 (C) DISCLOSURE TO OTHER AGENCY OF

17 FEDERAL GOVERNMENT.—

18 (i) IN GENERAL.—No information ob19 tained under the authority of this subtitle

20 may be made available to another agency

21 or officer of the Federal Government for

22 any purpose other than the implementation

23 of this subtitle and any investigatory or en24 forcement activity necessary for the imple25 mentation of this subtitle.
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1 (ii) PENALTY.—A person who know2 ingly violates this subparagraph shall, on

3 conviction, be subject to a fine of not more

4 than $1,000 or to imprisonment for not

5 more than 1 year, or both, and if an offi6 cer, employee, or agent of the Board or the

7 Department, shall be removed from office

8 or terminated from employment, as appli9 cable.

10 (D) GENERAL STATEMENTS.—Nothing in

11 this paragraph prohibits—

12 (i) the issuance of general statements,

13 based on the reports, of the number of per14 sons subject to the order or statistical data

15 collected from the reports, if the state16 ments do not identify the information pro17 vided by any person; or

18 (ii) the publication, by direction of the

19 Secretary, of the name of a person violat20 ing the order, together with a statement of

21 the particular provisions of the order vio22 lated by the person.

23 (j) OTHER TERMS AND CONDITIONS.—The order

24 shall contain such terms and conditions, consistent with

25 this subtitle, as are necessary to effectuate this subtitle,
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1 including regulations relating to the assessment of late

2 payment charges.

3 SEC. 906. REFERENDA.

4 (a) INITIAL REFERENDUM.—

5 (1) IN GENERAL.—Within the 60-day period

6 immediately preceding the effective date of an order,

7 as provided in section 904(b)(3), the Secretary shall

8 conduct a referendum among processors who, during

9 a representative period as determined by the Sec10 retary, have been engaged in processing, for the pur11 pose of ascertaining whether the order shall go into

12 effect.

13 (2) APPROVAL OF ORDER.—The order shall be14 come effective, as provided in section 904(b), only if

15 the Secretary determines that the order has been ap16 proved by not less than a majority of the processors

17 voting in the referendum and if the majority proc18 essed more than 50 percent of the popcorn certified

19 as having been processed, during the representative

20 period, by the processors voting.

21 (b) ADDITIONAL REFERENDA.—

22 (1) IN GENERAL.—Not earlier than 3 years

23 after the effective date of an order approved under

24 subsection (a), on the request of the Board or a rep25 resentative group of processors, as described in
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1 paragraph (2), the Secretary may conduct additional

2 referenda to determine whether processors favor the

3 termination or suspension of the order.

4 (2) REPRESENTATIVE GROUP OF PROC5 ESSORS.—An additional referendum on an order

6 shall be conducted if the referendum is requested by

7 30 percent or more of the number of processors who,

8 during a representative period as determined by the

9 Secretary, have been engaged in processing.

10 (3) DISAPPROVAL OF ORDER.—If the Secretary

11 determines, in a referendum conducted under para12 graph (1), that suspension or termination of the

order is favored by at least 2 13 ⁄3 of the processors vot14 ing in the referendum, the Secretary shall—

15 (A) suspend or terminate, as appropriate,

16 collection of assessments under the order not

17 later than 180 days after the date of determina18 tion; and

19 (B) suspend or terminate the order, as ap20 propriate, in an orderly manner as soon as

21 practicable after the date of determination.

22 (c) COSTS OF REFERENDUM.—The Secretary shall be

23 reimbursed from assessments collected by the Board for

24 any expenses incurred by the Secretary in connection with

25 the conduct of any referendum under this section.
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1 (d) METHOD OF CONDUCTING REFERENDUM.—Sub2 ject to this section, a referendum conducted under this

3 section shall be conducted in such manner as is deter4 mined by the Secretary.

5 (e) CONFIDENTIALITY OF BALLOTS AND OTHER IN6 FORMATION.—

7 (1) IN GENERAL.—The ballots and other infor8 mation or reports that reveal or tend to reveal the

9 vote of any processor, or any business operation of

10 a processor, shall be considered to be strictly con11 fidential and shall not be disclosed.

12 (2) PENALTY FOR VIOLATIONS.—An officer or

13 employee of the Department who knowingly violates

14 paragraph (1) shall be subject to the penalties de15 scribed in section 905(i)(3)(C)(ii).

16 SEC. 907. PETITION AND REVIEW.

17 (a) PETITION.—

18 (1) IN GENERAL.—A person subject to an order

19 may file with the Secretary a petition—

20 (A) stating that the order, a provision of

21 the order, or an obligation imposed in connec22 tion with the order is not established in accord23 ance with law; and
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1 (B) requesting a modification of the order

2 or obligation or an exemption from the order or

3 obligation.

4 (2) STATUTE OF LIMITATIONS.—A petition

5 under paragraph (1) concerning an obligation may

6 be filed not later than 2 years after the date of im7 position of the obligation.

8 (3) HEARINGS.—The petitioner shall be given

9 the opportunity for a hearing on a petition filed

10 under paragraph (1), in accordance with regulations

11 issued by the Secretary.

12 (4) RULING.—After a hearing under paragraph

13 (3), the Secretary shall issue a ruling on the petition

14 that is the subject of the hearing, which shall be

15 final if the ruling is in accordance with applicable

16 law.

17 (b) REVIEW.—

18 (1) COMMENCEMENT OF ACTION.—The district

19 court of the United States for any district in which

20 a person who is a petitioner under subsection (a) re21 sides or carries on business shall have jurisdiction to

22 review a ruling on the petition, if the person files a

23 complaint not later than 20 days after the date of

24 issuance of the ruling under subsection (a)(4).
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1 (2) PROCESS.—Service of process in a proceed2 ing under paragraph (1) may be made on the Sec3 retary by delivering a copy of the complaint to the

4 Secretary.

5 (3) REMANDS.—If the court determines, under

6 paragraph (1), that a ruling issued under subsection

7 (a)(4) is not in accordance with applicable law, the

8 court shall remand the matter to the Secretary with

9 directions—

10 (A) to make such ruling as the court shall

11 determine to be in accordance with law; or

12 (B) to take such further proceedings as, in

13 the opinion of the court, the law requires.

14 (c) ENFORCEMENT.—The pendency of proceedings

15 instituted under subsection (a) may not impede, hinder,

16 or delay the Secretary or the Attorney General from tak17 ing action under section 908.

18 SEC. 908. ENFORCEMENT.

19 (a) IN GENERAL.—The Secretary may issue an en20 forcement order to restrain or prevent any person from

21 violating an order or regulation issued under this subtitle

22 and may assess a civil penalty of not more than $1,000

23 for each violation of the enforcement order, after an op24 portunity for an administrative hearing, if the Secretary

25 determines that the administration and enforcement of the
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1 order and this subtitle would be adequately served by such

2 a procedure.

3 (b) JURISDICTION.—The district courts of the United

4 States are vested with jurisdiction specifically to enforce,

5 and to prevent and restrain any person from violating, an

6 order or regulation issued under this subtitle.

7 (c) REFERRAL TO ATTORNEY GENERAL.—A civil ac8 tion authorized to be brought under this section shall be

9 referred to the Attorney General for appropriate action.

10 SEC. 909. INVESTIGATIONS AND POWER TO SUBPOENA.

11 (a) INVESTIGATIONS.—The Secretary may make such

12 investigations as the Secretary considers necessary—

13 (1) for the effective administration of this sub14 title; and

15 (2) to determine whether any person subject to

16 this subtitle has engaged, or is about to engage, in

17 an act that constitutes or will constitute a violation

18 of this subtitle or of an order or regulation issued

19 under this subtitle.

20 (b) OATHS, AFFIRMATIONS, AND SUBPOENAS.—For

21 the purpose of an investigation under subsection (a), the

22 Secretary may administer oaths and affirmations, sub23 poena witnesses, compel the attendance of witnesses, take

24 evidence, and require the production of any records that

25 are relevant to the inquiry. The attendance of witnesses
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1 and the production of records may be required from any

2 place in the United States.

3 (c) AID OF COURTS.—

4 (1) REQUEST.—In the case of contumacy by, or

5 refusal to obey a subpoena issued to, any person, the

6 Secretary may request the aid of any court of the

7 United States within the jurisdiction of which the in8 vestigation or proceeding is carried on, or where the

9 person resides or carries on business, in requiring

10 the attendance and testimony of the person and the

11 production of records.

12 (2) ENFORCEMENT ORDER OF THE COURT.—

13 The court may issue an enforcement order requiring

14 the person to appear before the Secretary to produce

15 records or to give testimony concerning the matter

16 under investigation.

17 (3) CONTEMPT.—A failure to obey an enforce18 ment order of the court under paragraph (2) may be

19 punished by the court as a contempt of the court.

20 (4) PROCESS.—Process in a case under this

21 subsection may be served in the judicial district in

22 which the person resides or conducts business or

23 wherever the person may be found.
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1 SEC. 910. RELATION TO OTHER PROGRAMS.

2 Nothing in this subtitle preempts or supersedes any

3 other program relating to popcorn promotion organized

4 and operated under the laws of the United States or any

5 State.

6 SEC. 911. REGULATIONS.

7 The Secretary may issue such regulations as are nec8 essary to carry out this subtitle.

9 SEC. 912. AUTHORIZATION OF APPROPRIATIONS.

10 There are authorized to be appropriated such sums

11 as are necessary to carry out this subtitle. Amounts made

12 available under this section or otherwise made available

13 to the Department, and amounts made available under

14 any other marketing or promotion order, may not be used

15 to pay any administrative expense of the Board.

16 Subtitle B—Canola and Rapeseed

17 SEC. 921. SHORT TITLE.

18 This subtitle may be cited as the ‘‘Canola and

19 Rapeseed Research, Promotion, and Consumer Informa20 tion Act’’.

21 SEC. 922. FINDINGS AND DECLARATION OF POLICY.

22 (a) FINDINGS.—Congress finds that—

23 (1) canola and rapeseed products are an impor24 tant and nutritious part of the human diet;

25 (2) the production of canola and rapeseed prod26 ucts plays a significant role in the economy of the
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1 United States in that canola and rapeseed products

2 are produced by thousands of canola and rapeseed

3 producers, processed by numerous processing enti4 ties, and canola and rapeseed products produced in

5 the United States are consumed by people through6 out the United States and foreign countries;

7 (3) canola, rapeseed, and canola and rapeseed

8 products should be readily available and marketed

9 efficiently to ensure that consumers have an ade10 quate supply of canola and rapeseed products at a

11 reasonable price;

12 (4) the maintenance and expansion of existing

13 markets and development of new markets for canola,

14 rapeseed, and canola and rapeseed products are vital

15 to the welfare of canola and rapeseed producers and

16 processors and those persons concerned with market17 ing canola, rapeseed, and canola and rapeseed prod18 ucts, as well as to the general economy of the United

19 States, and are necessary to ensure the ready avail20 ability and efficient marketing of canola, rapeseed,

21 and canola and rapeseed products;

22 (5) there exist established State and national

23 organizations conducting canola and rapeseed re24 search, promotion, and consumer education pro25 grams that are valuable to the efforts of promoting
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1 the consumption of canola, rapeseed, and canola and

2 rapeseed products;

3 (6) the cooperative development, financing, and

4 implementation of a coordinated national program of

5 canola and rapeseed research, promotion, consumer

6 information, and industry information is necessary

7 to maintain and expand existing markets and de8 velop new markets for canola, rapeseed, and canola

9 and rapeseed products; and

10 (7) canola, rapeseed, and canola and rapeseed

11 products move in interstate and foreign commerce,

12 and canola, rapeseed, and canola and rapeseed prod13 ucts that do not move in interstate or foreign com14 merce directly burden or affect interstate commerce

15 in canola, rapeseed, and canola and rapeseed prod16 ucts.

17 (b) POLICY.—It is the policy of this subtitle to estab18 lish an orderly procedure for developing, financing through

19 assessments on domestically-produced canola and

20 rapeseed, and implementing a program of research, pro21 motion, consumer information, and industry information

22 designed to strengthen the position in the marketplace of

23 the canola and rapeseed industry, to maintain and expand

24 existing domestic and foreign markets and uses for canola,

25 rapeseed, and canola and rapeseed products, and to de-
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1 velop new markets and uses for canola, rapeseed, and

2 canola and rapeseed products.

3 (c) CONSTRUCTION.—Nothing in this subtitle pro4 vides for the control of production or otherwise limits the

5 right of individual producers to produce canola, rapeseed,

6 or canola or rapeseed products.

7 SEC. 923. DEFINITIONS.

8 In this subtitle (unless the context otherwise re9 quires):

10 (1) BOARD.—The term ‘‘Board’’ means the Na11 tional Canola and Rapeseed Board established under

12 section 925(b).

13 (2) CANOLA; RAPESEED.—The terms ‘‘canola’’

14 and ‘‘rapeseed’’ means any brassica plant grown in

15 the United States for the production of an oilseed,

16 the oil of which is used for a food or nonfood use.

17 (3) CANOLA OR RAPESEED PRODUCTS.—The

18 term ‘‘canola or rapeseed products’’ means products

19 produced, in whole or in part, from canola or

20 rapeseed.

21 (4) COMMERCE.—The term ‘‘commerce’’ in22 cludes interstate, foreign, and intrastate commerce.

23 (5) CONFLICT OF INTEREST.—The term ‘‘con24 flict of interest’’ means a situation in which a mem25 ber of the Board has a direct or indirect financial
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1 interest in a corporation, partnership, sole propri2 etorship, joint venture, or other business entity deal3 ing directly or indirectly with the Board.

4 (6) CONSUMER INFORMATION.—The term

5 ‘‘consumer information’’ means information that will

6 assist consumers and other persons in making eval7 uations and decisions regarding the purchase, prepa8 ration, and use of canola, rapeseed, or canola or

9 rapeseed products.

10 (7) DEPARTMENT.—The term ‘‘Department’’

11 means the Department of Agriculture.

12 (8) FIRST PURCHASER.—The term ‘‘first pur13 chaser’’ means—

14 (A) except as provided in subparagraph

15 (B), a person buying or otherwise acquiring

16 canola, rapeseed, or canola or rapeseed prod17 ucts produced by a producer; or

18 (B) the Commodity Credit Corporation, in

19 a case in which canola or rapeseed is forfeited

20 to the Commodity Credit Corporation as collat21 eral for a loan issued under a price support

22 loan program administered by the Commodity

23 Credit Corporation.

24 (9) INDUSTRY INFORMATION.—The term ‘‘in25 dustry information’’ means information or programs
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1 that will lead to the development of new markets,

2 new marketing strategies, or increased efficiency for

3 the canola and rapeseed industry, or an activity to

4 enhance the image of the canola or rapeseed indus5 try.

6 (10) INDUSTRY MEMBER.—The term ‘‘industry

7 member’’ means a member of the canola and

8 rapeseed industry who represents—

9 (A) manufacturers of canola or rapeseed

10 products; or

11 (B) persons who commercially buy or sell

12 canola or rapeseed.

13 (11) MARKETING.—The term ‘‘marketing’’

14 means the sale or other disposition of canola,

15 rapeseed, or canola or rapeseed products in a chan16 nel of commerce.

17 (12) ORDER.—The term ‘‘order’’ means an

18 order issued under section 924.

19 (13) PERSON.—The term ‘‘person’’ means an

20 individual, partnership, corporation, association, co21 operative, or any other legal entity.

22 (14) PRODUCER.—The term ‘‘producer’’ means

23 a person engaged in the growing of canola or

24 rapeseed in the United States who owns, or who
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1 shares the ownership and risk of loss of, the canola

2 or rapeseed.

3 (15) PROMOTION.—The term ‘‘promotion’’

4 means an action, including paid advertising, tech5 nical assistance, or trade servicing activity, to en6 hance the image or desirability of canola, rapeseed,

7 or canola or rapeseed products in domestic and for8 eign markets, or an activity designed to commu9 nicate to consumers, processors, wholesalers, retail10 ers, government officials, or others information re11 lating to the positive attributes of canola, rapeseed,

12 or canola or rapeseed products or the benefits of use

13 or distribution of canola, rapeseed, or canola or

14 rapeseed products.

15 (16) QUALIFIED STATE CANOLA AND RAPESEED

16 BOARD.—The term ‘‘qualified State canola and

17 rapeseed board’’ means a State canola and rapeseed

18 promotion entity that is authorized and functioning

19 under State law.

20 (17) RESEARCH.—The term ‘‘research’’ means

21 any type of test, study, or analysis to advance the

22 image, desirability, marketability, production, prod23 uct development, quality, or functional or nutritional

24 value of canola, rapeseed, or canola or rapeseed

25 products, including research activity designed to
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1 identify and analyze barriers to export sales of

2 canola or rapeseed produced in the United States.

3 (18) SECRETARY.—The term ‘‘Secretary’’

4 means the Secretary of Agriculture.

5 (19) STATE.—The term ‘‘State’’ means any of

6 the 50 States, the District of Columbia and the

7 Commonwealth of Puerto Rico.

8 (20) UNITED STATES.—The term ‘‘United

9 States’’ means collectively the 50 States, the District

10 of Columbia, and the Commonwealth of Puerto Rico.

11 SEC. 924. ISSUANCE AND AMENDMENT OF ORDERS.

12 (a) IN GENERAL.—Subject to subsection (b), the Sec13 retary shall issue 1 or more orders under this subtitle ap14 plicable to producers and first purchasers of canola,

15 rapeseed, or canola or rapeseed products. The order shall

16 be national in scope. Not more than 1 order shall be in

17 effect under this subtitle at any 1 time.

18 (b) PROCEDURE.—

19 (1) PROPOSAL OR REQUEST FOR ISSUANCE.—

20 The Secretary may propose the issuance of an order

21 under this subtitle, or an association of canola and

22 rapeseed producers or any other person that would

23 be affected by an order issued pursuant to this sub24 title may request the issuance of, and submit a pro25 posal for, an order.
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1 (2) NOTICE AND COMMENT CONCERNING PRO2 POSED ORDER.—Not later than 60 days after the re3 ceipt of a request and proposal for an order pursu4 ant to paragraph (1), or whenever the Secretary de5 termines to propose an order, the Secretary shall

6 publish a proposed order and give due notice and op7 portunity for public comment on the proposed order.

8 (3) ISSUANCE OF ORDER.—After notice and op9 portunity for public comment are given as provided

10 in paragraph (2), the Secretary shall issue an order,

11 taking into consideration the comments received and

12 including in the order provisions necessary to ensure

13 that the order is in conformity with the require14 ments of this subtitle. The order shall be issued and

15 become effective not later than 180 days following

16 publication of the proposed order.

17 (c) AMENDMENTS.—The Secretary, from time to

18 time, may amend an order issued under this section.

19 SEC. 925. REQUIRED TERMS IN ORDERS.

20 (a) IN GENERAL.—An order issued under this sub21 title shall contain the terms and conditions specified in

22 this section.

23 (b) ESTABLISHMENT AND MEMBERSHIP OF THE NA24 TIONAL CANOLA AND RAPESEED BOARD.—
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1 (1) IN GENERAL.—The order shall provide for

2 the establishment of, and appointment of members

3 to, a National Canola and Rapeseed Board to ad4 minister the order.

5 (2) SERVICE TO ENTIRE INDUSTRY.—The

6 Board shall carry out programs and projects that

7 will provide maximum benefit to the canola and

8 rapeseed industry in all parts of the United States

9 and only promote canola, rapeseed, or canola or

10 rapeseed products.

11 (3) BOARD MEMBERSHIP.—The Board shall

12 consist of 15 members, including—

13 (A) 11 members who are producers, in14 cluding—

15 (i) 1 member from each of 6 geo16 graphic regions comprised of States where

17 canola or rapeseed is produced, as deter18 mined by the Secretary; and

19 (ii) 5 members from the geographic

20 regions referred to in clause (i), allocated

21 according to the production in each region;

22 and

23 (B) 4 members who are industry members,

24 including at least—
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1 (i) 1 member who represents manu2 facturers of canola or rapeseed end prod3 ucts; and

4 (ii) 1 member who represents persons

5 who commercially buy or sell canola or

6 rapeseed.

7 (4) LIMITATION ON STATE RESIDENCE.—There

8 shall be no more than 4 producer members of the

9 Board from any State.

10 (5) MODIFYING BOARD MEMBERSHIP.—In ac11 cordance with regulations approved by the Secretary,

12 at least once each 3 years and not more than once

13 each 2 years, the Board shall review the geographic

14 distribution of canola and rapeseed production

15 throughout the United States and, if warranted, rec16 ommend to the Secretary that the Secretary—

17 (A) reapportion regions in order to reflect

18 the geographic distribution of canola and

19 rapeseed production; and

20 (B) reapportion the seats on the Board to

21 reflect the production in each region.

22 (6) CERTIFICATION OF ORGANIZATIONS.—

23 (A) IN GENERAL.—The eligibility of any

24 State organization to represent producers shall

25 be certified by the Secretary.
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1 (B) CRITERIA.—The Secretary shall certify

2 any State organization that the Secretary deter3 mines has a history of stability and permanency

4 and meets at least 1 of the following criteria:

5 (i) MAJORITY REPRESENTATION.—

6 The total paid membership of the organi7 zation—

8 (I) is comprised of at least a ma9 jority of canola or rapeseed producers;

10 or

11 (II) represents at least a major12 ity of the canola or rapeseed produc13 ers in the State.

14 (ii) SUBSTANTIAL NUMBER OF PRO15 DUCERS REPRESENTED.—The organization

16 represents a substantial number of produc17 ers that produce a substantial quantity of

18 canola or rapeseed in the State.

19 (iii) PURPOSE.—The organization is a

20 general farm or agricultural organization

21 that has as a stated objective the pro22 motion and development of the United

23 States canola or rapeseed industry and the

24 economic welfare of United States canola

25 or rapeseed producers.
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1 (C) REPORT.—The Secretary shall make a

2 certification under this paragraph on the basis

3 of a factual report submitted by the State orga4 nization.

5 (7) TERMS OF OFFICE.—

6 (A) IN GENERAL.—The members of the

7 Board shall serve for a term of 3 years, except

8 that the members appointed to the initial Board

9 shall serve, proportionately, for terms of 1, 2,

10 and 3 years, as determined by the Secretary.

11 (B) TERMINATION OF TERMS.—Notwith12 standing subparagraph (C), each member shall

13 continue to serve until a successor is appointed

14 by the Secretary.

15 (C) LIMITATION ON TERMS.—No individ16 ual may serve more than 2 consecutive 3-year

17 terms as a member.

18 (8) COMPENSATION.—A member of the Board

19 shall serve without compensation, but shall be reim20 bursed for necessary and reasonable expenses in21 curred in the performance of duties for and ap22 proved by the Board.

23 (c) POWERS AND DUTIES OF THE BOARD.—The

24 order shall define the powers and duties of the Board,

25 which shall include the power and duty—
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1 (1) to administer the order in accordance with

2 the terms and conditions of the order;

3 (2) to make regulations to effectuate the terms

4 and conditions of the order;

5 (3) to meet, organize, and select from among

6 members of the Board a chairperson, other officers,

7 and committees and subcommittees, as the Board

8 determines appropriate;

9 (4) to establish working committees of persons

10 other than Board members;

11 (5) to employ such persons, other than Board

12 members, as the Board considers necessary, and to

13 determine the compensation and define the duties of

14 the persons;

15 (6) to prepare and submit for the approval of

16 the Secretary, when appropriate or necessary, a rec17 ommended rate of assessment under section 926,

18 and a fiscal period budget of the anticipated ex19 penses in the administration of the order, including

20 the probable costs of all programs and projects;

21 (7) to develop programs and projects, subject to

22 subsection (d);

23 (8) to enter into contracts or agreements, sub24 ject to subsection (e), to develop and carry out pro-
623

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1 grams or projects of research, promotion, industry

2 information, and consumer information;

3 (9) to carry out research, promotion, industry

4 information, and consumer information projects, and

5 to pay the costs of the projects with assessments col6 lected under section 926;

7 (10) to keep minutes, books, and records that

8 reflect the actions and transactions of the Board,

9 and promptly report minutes of each Board meeting

10 to the Secretary;

11 (11) to appoint and convene, from time to time,

12 working committees comprised of producers, indus13 try members, and the public to assist in the develop14 ment of research, promotion, industry information,

15 and consumer information programs for canola,

16 rapeseed, and canola and rapeseed products;

17 (12) to invest, pending disbursement under a

18 program or project, funds collected through assess19 ments authorized under section 926, or funds earned

20 from investments, only in—

21 (A) obligations of the United States or an

22 agency of the United States;

23 (B) general obligations of a State or a po24 litical subdivision of a State;
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1 (C) an interest-bearing account or certifi2 cate of deposit of a bank that is a member of

3 the Federal Reserve System; or

4 (D) obligations fully guaranteed as to prin5 cipal and interest by the United States;

6 (13) to receive, investigate, and report to the

7 Secretary complaints of violations of the order;

8 (14) to furnish the Secretary with such infor9 mation as the Secretary may request;

10 (15) to recommend to the Secretary amend11 ments to the order;

12 (16) to develop and recommend to the Sec13 retary for approval such regulations as may be nec14 essary for the development and execution of pro15 grams or projects, or as may otherwise be necessary,

16 to carry out the order; and

17 (17) to provide the Secretary with advance no18 tice of meetings.

19 (d) PROGRAMS AND BUDGETS.—

20 (1) SUBMISSION TO SECRETARY.—The order

21 shall provide that the Board shall submit to the Sec22 retary for approval any program or project of re23 search, promotion, consumer information, or indus24 try information. No program or project shall be im25 plemented prior to approval by the Secretary.
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1 (2) BUDGETS.—The order shall require the

2 Board, prior to the beginning of each fiscal year, or

3 as may be necessary after the beginning of a fiscal

4 year, to submit to the Secretary for approval budg5 ets of anticipated expenses and disbursements in the

6 implementation of the order, including projected

7 costs of research, promotion, consumer information,

8 and industry information programs and projects.

9 (3) INCURRING EXPENSES.—The Board may

10 incur such expenses for programs or projects of re11 search, promotion, consumer information, or indus12 try information, and other expenses for the adminis13 tration, maintenance, and functioning of the Board

14 as may be authorized by the Secretary, including

15 any implementation, administrative, and referendum

16 costs incurred by the Department.

17 (4) PAYING EXPENSES.—The funds to cover the

18 expenses referred to in paragraph (3) shall be paid

19 by the Board from assessments collected under sec20 tion 926 or funds borrowed pursuant to paragraph

21 (5).

22 (5) AUTHORITY TO BORROW.—To meet the ex23 penses referred to in paragraph (3), the Board shall

24 have the authority to borrow funds, as approved by

25 the Secretary, for capital outlays and startup costs.
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1 (e) CONTRACTS AND AGREEMENTS.—

2 (1) IN GENERAL.—To ensure efficient use of

3 funds, the order shall provide that the Board may

4 enter into a contract or agreement for the implemen5 tation and carrying out of a program or project of

6 canola, rapeseed, or canola or rapeseed products re7 search, promotion, consumer information, or indus8 try information, including a contract with a producer

9 organization, and for the payment of the costs with

10 funds received by the Board under the order.

11 (2) REQUIREMENTS.—A contract or agreement

12 under paragraph (1) shall provide that—

13 (A) the contracting party shall develop and

14 submit to the Board a program or project to15 gether with a budget that shall show the esti16 mated costs to be incurred for the program or

17 project;

18 (B) the program or project shall become

19 effective on the approval of the Secretary; and

20 (C) the contracting party shall keep accu21 rate records of all transactions, account for

22 funds received and expended, make periodic re23 ports to the Board of activities conducted, and

24 make such other reports as the Board or the

25 Secretary may require.
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1 (3) PRODUCER ORGANIZATIONS.—The order

2 shall provide that the Board may contract with pro3 ducer organizations for any other services. The con4 tract shall include provisions comparable to those re5 quired by paragraph (2).

6 (f) BOOKS AND RECORDS OF THE BOARD.—

7 (1) IN GENERAL.—The order shall require the

8 Board to—

9 (A) maintain such books and records

10 (which shall be available to the Secretary for in11 spection and audit) as the Secretary may pre12 scribe;

13 (B) prepare and submit to the Secretary,

14 from time to time, such reports as the Sec15 retary may prescribe; and

16 (C) account for the receipt and disburse17 ment of all funds entrusted to the Board.

18 (2) AUDITS.—The Board shall cause the books

19 and records of the Board to be audited by an inde20 pendent auditor at the end of each fiscal year, and

21 a report of the audit to be submitted to the Sec22 retary.

23 (g) PROHIBITION.—

24 (1) IN GENERAL.—Subject to paragraph (2),

25 the Board shall not engage in any action to, nor
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1 shall any funds received by the Board under this

2 subtitle be used to—

3 (A) influence legislation or governmental

4 action;

5 (B) engage in an action that would be a

6 conflict of interest;

7 (C) engage in advertising that is false or

8 misleading; or

9 (D) engage in promotion that would dis10 parage other commodities.

11 (2) ACTION PERMITTED.—Paragraph (1) does

12 not preclude—

13 (A) the development and recommendation

14 of amendments to the order;

15 (B) the communication to appropriate gov16 ernment officials of information relating to the

17 conduct, implementation, or results of pro18 motion, research, consumer information, or in19 dustry information activities under the order; or

20 (C) any action designed to market canola

21 or rapeseed products directly to a foreign gov22 ernment or political subdivision of a foreign

23 government.

24 (h) BOOKS AND RECORDS.—
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1 (1) IN GENERAL.—The order shall require that

2 each producer, first purchaser, or industry member

3 shall—

4 (A) maintain and submit to the Board any

5 reports considered necessary by the Secretary

6 to ensure compliance with this subtitle; and

7 (B) make available during normal business

8 hours, for inspection by employees of the Board

9 or Secretary, such books and records as are

10 necessary to carry out this subtitle, including

11 such records as are necessary to verify any re12 quired reports.

13 (2) CONFIDENTIALITY.—

14 (A) IN GENERAL.—Except as otherwise

15 provided in this subtitle, all information ob16 tained from books, records, or reports required

17 to be maintained under paragraph (1) shall be

18 kept confidential, and shall not be disclosed to

19 the public by any person.

20 (B) DISCLOSURE.—Information referred to

21 in subparagraph (A) may be disclosed to the

22 public if—

23 (i) the Secretary considers the infor24 mation relevant;
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1 (ii) the information is revealed in a

2 suit or administrative hearing brought at

3 the direction or on the request of the Sec4 retary or to which the Secretary or any of5 ficer of the Department is a party; and

6 (iii) the information relates to this

7 subtitle.

8 (C) MISCONDUCT.—A knowing disclosure

9 of confidential information in violation of sub10 paragraph (A) by an officer or employee of the

11 Board or Department, except as required by

12 other law or allowed under subparagraph (B) or

13 (D), shall be considered a violation of this sub14 title.

15 (D) GENERAL STATEMENTS.—Nothing in

16 this paragraph prohibits—

17 (i) the issuance of general statements,

18 based on the reports, of the number of per19 sons subject to the order or statistical data

20 collected from the reports, if the state21 ments do not identify the information fur22 nished by any person; or

23 (ii) the publication, by direction of the

24 Secretary, of the name of a person violat25 ing the order, together with a statement of
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1 the particular provisions of the order vio2 lated by the person.

3 (3) AVAILABILITY OF INFORMATION.—

4 (A) EXCEPTION.—Except as provided in

5 this subtitle, information obtained under this

6 subtitle may be made available to another agen7 cy of the Federal Government for a civil or

8 criminal law enforcement activity if the activity

9 is authorized by law and if the head of the

10 agency has made a written request to the Sec11 retary specifying the particular information de12 sired and the law enforcement activity for which

13 the information is sought.

14 (B) PENALTY.—Any person knowingly vio15 lating this subsection, on conviction, shall be

16 subject to a fine of not more than $1,000 or to

17 imprisonment for not more than 1 year, or

18 both, and if an officer or employee of the Board

19 or the Department, shall be removed from office

20 or terminated from employment, as applicable.

21 (5) WITHHOLDING INFORMATION.—Nothing in

22 this subtitle authorizes withholding information from

23 Congress.

24 (i) USE OF ASSESSMENTS.—The order shall provide

25 that the assessments collected under section 926 shall be
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1 used for payment of the expenses in implementing and ad2 ministering this subtitle, with provision for a reasonable

3 reserve, and to cover those administrative costs incurred

4 by the Secretary in implementing and administering this

5 subtitle.

6 (j) OTHER TERMS AND CONDITIONS.—The order

7 also shall contain such terms and conditions, not inconsist8 ent with this subtitle, as determined necessary by the Sec9 retary to effectuate this subtitle.

10 SEC. 926. ASSESSMENTS.

11 (a) IN GENERAL.—

12 (1) FIRST PURCHASERS.—During the effective

13 period of an order issued pursuant to this subtitle,

14 assessments shall be—

15 (A) levied on all canola or rapeseed pro16 duced in the United States and marketed; and

17 (B) deducted from the payment made to a

18 producer for all canola or rapeseed sold to a

19 first purchaser.

20 (2) DIRECT PROCESSING.—The order shall pro21 vide that any person processing canola or rapeseed

22 of that person’s own production and marketing the

23 canola or rapeseed, or canola or rapeseed products,

24 shall remit to the Board or a qualified State canola

25 and rapeseed board, in the manner prescribed by the
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1 order, an assessment established at a rate equivalent

2 to the rate provided for under subsection (d).

3 (b) LIMITATION ON ASSESSMENTS.—No more than

4 1 assessment may be assessed under subsection (a) on any

5 canola or rapeseed produced (as remitted by a first pur6 chaser).

7 (c) REMITTING ASSESSMENTS.—

8 (1) IN GENERAL.—Assessments required under

9 subsection (a) shall be remitted to the Board by a

10 first purchaser. The Board shall use qualified State

11 canola and rapeseed boards to collect the assess12 ments. If an appropriate qualified State canola and

13 rapeseed board does not exist to collect an assess14 ment, the assessment shall be collected by the

15 Board. There shall be only 1 qualified State canola

16 or rapeseed Board in each State.

17 (2) TIMES TO REMIT ASSESSMENT.—Each first

18 purchaser shall remit the assessment to the Board

19 as provided for in the order.

20 (d) ASSESSMENT RATE.—

21 (1) INITIAL RATE.—The initial assessment rate

22 shall be 4 cents per hundredweight of canola or

23 rapeseed produced and marketed.

24 (2) INCREASE.—The assessment rate may be

25 increased on recommendation by the Board to a rate
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1 not exceeding 10 cents per hundredweight of canola

2 or rapeseed produced and marketed in a State, un3 less—

4 (A) after the initial referendum is held

5 under section 927(a), the Board recommends

6 an increase above 10 cents per hundredweight;

7 and

8 (B) the increase is approved in a referen9 dum under section 927(b).

10 (3) CREDIT.—A producer who demonstrates to

11 the Board that the producer is participating in a

12 program of an established qualified State canola and

13 rapeseed board shall receive credit, in determining

14 the assessment due from the producer, for contribu15 tions to the program of up to 2 cents per hundred16 weight of canola or rapeseed marketed.

17 (e) LATE PAYMENT CHARGE.—

18 (1) IN GENERAL.—There shall be a late pay19 ment charge imposed on any person who fails to

20 remit, on or before the date provided for in the

21 order, to the Board the total amount for which the

22 person is liable.

23 (2) AMOUNT OF CHARGE.—The amount of the

24 late payment charge imposed under paragraph (1)
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1 shall be prescribed by the Board with the approval

2 of the Secretary.

3 (f) REFUND OF ASSESSMENTS FROM ESCROW AC4 COUNT.—

5 (1) ESTABLISHMENT OF ESCROW ACCOUNT.—

6 During the period beginning on the date on which

7 an order is first issued under section 924(b)(3) and

8 ending on the date on which a referendum is con9 ducted under section 927(a), the Board shall—

10 (A) establish an escrow account to be used

11 for assessment refunds; and

12 (B) place funds in such account in accord13 ance with paragraph (2).

14 (2) PLACEMENT OF FUNDS IN ACCOUNT.—The

15 Board shall place in such account, from assessments

16 collected during the period referred to in paragraph

17 (1), an amount equal to the product obtained by

18 multiplying the total amount of assessments col19 lected during the period by 10 percent.

20 (3) RIGHT TO RECEIVE REFUND.—The Board

21 shall refund to a producer the assessments paid by

22 or on behalf of the producer if—

23 (A) the producer is required to pay the as24 sessment;
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1 (B) the producer does not support the pro2 gram established under this subtitle; and

3 (C) the producer demands the refund prior

4 to the conduct of the referendum under section

5 927(a).

6 (4) FORM OF DEMAND.—The demand shall be

7 made in accordance with such regulations, in such

8 form, and within such time period as prescribed by

9 the Board.

10 (5) MAKING OF REFUND.—The refund shall be

11 made on submission of proof satisfactory to the

12 Board that the producer paid the assessment for

13 which the refund is demanded.

14 (6) PRORATION.—If—

15 (A) the amount in the escrow account re16 quired by paragraph (1) is not sufficient to re17 fund the total amount of assessments demanded

18 by eligible producers; and

19 (B) the order is not approved pursuant to

20 the referendum conducted under section 927(a);

21 the Board shall prorate the amount of the refunds

22 among all eligible producers who demand a refund.

23 (7) PROGRAM APPROVED.—If the plan is ap24 proved pursuant to the referendum conducted under

25 section 927(a), all funds in the escrow account shall
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1 be returned to the Board for use by the Board in

2 accordance with this subtitle.

3 SEC. 927. REFERENDA.

4 (a) INITIAL REFERENDUM.—

5 (1) REQUIREMENT.—During the period ending

6 30 months after the date of the first issuance of an

7 order under section 924, the Secretary shall conduct

8 a referendum among producers who, during a rep9 resentative period as determined by the Secretary,

10 have been engaged in the production of canola or

11 rapeseed for the purpose of ascertaining whether the

12 order then in effect shall be continued.

13 (2) ADVANCE NOTICE.—The Secretary shall, to

14 the extent practicable, provide broad public notice in

15 advance of any referendum. The notice shall be pro16 vided, without advertising expenses, by means of

17 newspapers, county newsletters, the electronic media,

18 and press releases, through the use of notices posted

19 in State and county Cooperative State Research,

20 Education, and Extension Service offices and county

21 Consolidated Farm Service Agency offices, and by

22 other appropriate means specified in the order. The

23 notice shall include information on when the referen24 dum will be held, registration and voting require-
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1 ments, rules regarding absentee voting, and other

2 pertinent information.

3 (3) APPROVAL OF ORDER.—The order shall be

4 continued only if the Secretary determines that the

5 order has been approved by not less than a majority

6 of the producers voting in the referendum.

7 (4) DISAPPROVAL OF ORDER.—If continuation

8 of the order is not approved by a majority of those

9 voting in the referendum, the Secretary shall termi10 nate collection of assessments under the order within

11 6 months after the referendum and shall terminate

12 the order in an orderly manner as soon as prac13 ticable.

14 (b) ADDITIONAL REFERENDA.—

15 (1) IN GENERAL.—

16 (A) REQUIREMENT.—After the initial ref17 erendum on an order, the Secretary shall con18 duct additional referenda, as described in sub19 paragraph (C), if requested by a representative

20 group of producers, as described in subpara21 graph (B).

22 (B) REPRESENTATIVE GROUP OF PRODUC23 ERS.—An additional referendum on an order

24 shall be conducted if requested by 10 percent or

25 more of the producers who during a representa-
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1 tive period have been engaged in the production

2 of canola or rapeseed.

3 (C) ELIGIBLE PRODUCERS.—Each addi4 tional referendum shall be conducted among all

5 producers who, during a representative period,

6 as determined by the Secretary, have been en7 gaged in the production of canola or rapeseed

8 to determine whether the producers favor the

9 termination or suspension of the order.

10 (2) DISAPPROVAL OF ORDER.—If the Secretary

11 determines, in a referendum conducted under para12 graph (1), that suspension or termination of the

13 order is favored by a majority of the producers vot14 ing in the referendum, the Secretary shall suspend

15 or terminate, as appropriate, collection of assess16 ments under the order within 6 months after the de17 termination, and shall suspend or terminate the

18 order, as appropriate, in an orderly manner as soon

19 as practicable after the determination.

20 (3) OPPORTUNITY TO REQUEST ADDITIONAL

21 REFERENDA.—

22 (A) IN GENERAL.—Beginning on the date

23 that is 5 years after the conduct of a referen24 dum under this subtitle, and every 5 years

25 thereafter, the Secretary shall provide canola
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1 and rapeseed producers an opportunity to re2 quest an additional referendum.

3 (B) METHOD OF MAKING REQUEST.—

4 (i) IN-PERSON REQUESTS.—To carry

5 out subparagraph (A), the Secretary shall

6 establish a procedure under which a pro7 ducer may request a reconfirmation ref8 erendum in-person at a county Cooperative

9 State Research, Education, and Extension

10 Service office or a county Consolidated

11 Farm Service Agency office during a pe12 riod established by the Secretary, or as

13 provided in clause (ii).

14 (ii) MAIL-IN REQUESTS.—In lieu of

15 making a request in person, a producer

16 may make a request by mail. To facilitate

17 the submission of requests by mail, the

18 Secretary may make mail-in request forms

19 available to producers.

20 (C) NOTIFICATIONS.—The Secretary shall

21 publish a notice in the Federal Register, and

22 the Board shall provide written notification to

23 producers, not later than 60 days prior to the

24 end of the period established under subpara25 graph (B)(i) for an in-person request, of the op-
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1 portunity of producers to request an additional

2 referendum. The notification shall explain the

3 right of producers to an additional referendum,

4 the procedure for a referendum, the purpose of

5 a referendum, and the date and method by

6 which producers may act to request an addi7 tional referendum under this paragraph. The

8 Secretary shall take such other action as the

9 Secretary determines is necessary to ensure

10 that producers are made aware of the oppor11 tunity to request an additional referendum.

12 (D) ACTION BY SECRETARY.—As soon as

13 practicable following the submission of a re14 quest for an additional referendum, the Sec15 retary shall determine whether a sufficient

16 number of producers have requested the ref17 erendum, and take such steps as are necessary

18 to conduct the referendum, as required under

19 paragraph (1).

20 (E) TIME LIMIT.—An additional referen21 dum requested under the procedures provided

22 in this paragraph shall be conducted not later

23 than 1 year after the Secretary determines that

24 a representative group of producers, as de-
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1 scribed in paragraph (1)(B), have requested the

2 conduct of the referendum.

3 (c) PROCEDURES.—

4 (1) REIMBURSEMENT OF SECRETARY.—The

5 Secretary shall be reimbursed from assessments col6 lected by the Board for any expenses incurred by the

7 Secretary in connection with the conduct of an activ8 ity required under this section.

9 (2) DATE.—Each referendum shall be con10 ducted for a reasonable period of time not to exceed

11 3 days, established by the Secretary, under a proce12 dure under which producers intending to vote in the

13 referendum shall certify that the producers were en14 gaged in the production of canola, rapeseed, or

15 canola or rapeseed products during the representa16 tive period and, at the same time, shall be provided

17 an opportunity to vote in the referendum.

18 (3) PLACE.—Referenda under this section shall

19 be conducted at locations determined by the Sec20 retary. On request, absentee mail ballots shall be

21 furnished by the Secretary in a manner prescribed

22 by the Secretary.

23 SEC. 928. PETITION AND REVIEW.

24 (a) PETITION.—
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1 (1) IN GENERAL.—A person subject to an order

2 issued under this subtitle may file with the Secretary

3 a petition—

4 (A) stating that the order, a provision of

5 the order, or an obligation imposed in connec6 tion with the order is not established in accord7 ance with law; and

8 (B) requesting a modification of the order

9 or an exemption from the order.

10 (2) HEARINGS.—The petitioner shall be given

11 the opportunity for a hearing on a petition filed

12 under paragraph (1), in accordance with regulations

13 issued by the Secretary.

14 (3) RULING.—After a hearing under paragraph

15 (2), the Secretary shall make a ruling on the peti16 tion that is the subject of the hearing, which shall

17 be final if the ruling is in accordance with applicable

18 law.

19 (4) LIMITATION ON PETITION.—Any petition

20 filed under this subtitle challenging an order, or any

21 obligation imposed in connected with an order, shall

22 be filed not later than 2 years after the effective

23 date of the order or obligation.

24 (b) REVIEW.—
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1 (1) COMMENCEMENT OF ACTION.—The district

2 court of the United States in any district in which

3 the person who is a petitioner under subsection (a)

4 resides or carries on business shall have jurisdiction

5 to review a ruling on the petition, if a complaint is

6 filed by the person not later than 20 days after the

7 date of the entry of a ruling by the Secretary under

8 subsection (a)(3).

9 (2) PROCESS.—Service of process in a proceed10 ing under paragraph (1) shall be conducted in ac11 cordance with the Federal Rules of Civil Procedure.

12 (3) REMANDS.—If the court determines, under

13 paragraph (1), that a ruling issued under subsection

14 (a)(3) is not in accordance with applicable law, the

15 court shall remand the matter to the Secretary with

16 directions either—

17 (A) to make such ruling as the court shall

18 determine to be in accordance with law; or

19 (B) to take such further proceedings as, in

20 the opinion of the court, the law requires.

21 (4) ENFORCEMENT.—The pendency of proceed22 ings instituted under subsection (a) shall not im23 pede, hinder, or delay the Attorney General or the

24 Secretary from taking any action under section 929.
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1 SEC. 929. ENFORCEMENT.

2 (a) JURISDICTION.—The district courts of the United

3 States are vested with jurisdiction specifically to enforce,

4 and to prevent and restrain any person from violating, an

5 order or regulation made or issued under this subtitle.

6 (b) REFERRAL TO ATTORNEY GENERAL.—A civil ac7 tion authorized to be commenced under this section shall

8 be referred to the Attorney General for appropriate action,

9 except that the Secretary shall not be required to refer

10 to the Attorney General a violation of this subtitle if the

11 Secretary believes that the administration and enforce12 ment of this subtitle would be adequately served by provid13 ing a suitable written notice or warning to the person who

14 committed the violation or by administrative action under

15 section 928.

16 (c) CIVIL PENALTIES AND ORDERS.—

17 (1) CIVIL PENALTIES.—

18 (A) IN GENERAL.—Any person who will19 fully violates any provision of an order or regu20 lation issued by the Secretary under this sub21 title, or who fails or refuses to pay, collect, or

22 remit an assessment or fee required of the per23 son under an order or regulation, may be as24 sessed—
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1 (i) a civil penalty by the Secretary of

2 not more than $1,000 for each violation;

3 and

4 (ii) in the case of a willful failure to

5 pay, collect, or remit an assessment as re6 quired by an order or regulation, an addi7 tional penalty equal to the amount of the

8 assessment.

9 (B) SEPARATE OFFENSE.—Each violation

10 under subparagraph (A) shall be a separate of11 fense.

12 (2) CEASE-AND-DESIST ORDERS.—In addition

13 to, or in lieu of, a civil penalty under paragraph (1),

14 the Secretary may issue an order requiring a person

15 to cease and desist from continuing a violation.

16 (3) NOTICE AND HEARING.—No penalty shall

17 be assessed, or cease-and-desist order issued, by the

18 Secretary under this subsection unless the person

19 against whom the penalty is assessed or the order is

20 issued is given notice and opportunity for a hearing

21 before the Secretary with respect to the violation.

22 (4) FINALITY.—The order of the Secretary as23 sessing a penalty or imposing a cease-and-desist

24 order under this subsection shall be final and conclu25 sive unless the affected person files an appeal of the
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1 order with the appropriate district court of the Unit2 ed States in accordance with subsection (d).

3 (d) REVIEW BY DISTRICT COURT.—

4 (1) COMMENCEMENT OF ACTION.—Any person

5 who has been determined to be in violation of this

6 subtitle, or against whom a civil penalty has been as7 sessed or a cease-and-desist order issued under sub8 section (c), may obtain review of the penalty or

9 order by—

10 (A) filing, within the 30-day period begin11 ning on the date the penalty is assessed or

12 order issued, a notice of appeal in—

13 (i) the district court of the United

14 States for the district in which the person

15 resides or conducts business; or

16 (ii) the United States District Court

17 for the District of Columbia; and

18 (B) simultaneously sending a copy of the

19 notice by certified mail to the Secretary.

20 (2) RECORD.—The Secretary shall file prompt21 ly, in the appropriate court referred to in paragraph

22 (1), a certified copy of the record on which the Sec23 retary has determined that the person has commit24 ted a violation.
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1 (3) STANDARD OF REVIEW.—A finding of the

2 Secretary under this section shall be set aside only

3 if the finding is found to be unsupported by substan4 tial evidence.

5 (e) FAILURE TO OBEY ORDERS.—Any person who

6 fails to obey a cease-and-desist order issued under this sec7 tion after the order has become final and unappealable,

8 or after the appropriate United States district court has

9 entered a final judgment in favor of the Secretary, shall

10 be subject to a civil penalty assessed by the Secretary,

11 after opportunity for a hearing and for judicial review

12 under the procedures specified in subsections (c) and (d),

13 of not more than $5,000 for each offense. Each day during

14 which the failure continues shall be considered as a sepa15 rate violation of the order.

16 (f) FAILURE TO PAY PENALTIES.—If a person fails

17 to pay an assessment of a civil penalty under this section

18 after the assessment has become a final and unappealable

19 order, or after the appropriate United States district court

20 has entered final judgment in favor of the Secretary, the

21 Secretary shall refer the matter to the Attorney General

22 for recovery of the amount assessed in the district court

23 in which the person resides or conducts business. In an

24 action for recovery, the validity and appropriateness of the
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1 final order imposing the civil penalty shall not be subject

2 to review.

3 (g) ADDITIONAL REMEDIES.—The remedies provided

4 in this subtitle shall be in addition to, and not exclusive

5 of, other remedies that may be available.

6 SEC. 930. INVESTIGATIONS AND POWER TO SUBPOENA.

7 (a) INVESTIGATIONS.—The Secretary may make such

8 investigations as the Secretary considers necessary—

9 (1) for the effective administration of this sub10 title; and

11 (2) to determine whether any person has en12 gaged or is engaging in an act that constitutes a vio13 lation of this subtitle, or an order, rule, or regulation

14 issued under this subtitle.

15 (b) SUBPOENAS, OATHS, AND AFFIRMATIONS.—

16 (1) IN GENERAL.—For the purpose of an inves17 tigation under subsection (a), the Secretary may ad18 minister oaths and affirmations, subpoena witnesses,

19 take evidence, and issue subpoenas to require the

20 production of any records that are relevant to the in21 quiry. The attendance of witnesses and the produc22 tion of records may be required from any place in

23 the United States.

24 (2) ADMINISTRATIVE HEARINGS.—For the pur25 pose of an administrative hearing held under section
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1 928 or 929, the presiding officer is authorized to ad2 minister oaths and affirmations, subpoena and com3 pel the attendance of witnesses, take evidence, and

4 require the production of any records that are rel5 evant to the inquiry. The attendance of witnesses

6 and the production of records may be required from

7 any place in the United States.

8 (c) AID OF COURTS.—In the case of contumacy by,

9 or refusal to obey a subpoena issued to, any person, the

10 Secretary may invoke the aid of any court of the United

11 States within the jurisdiction of which the investigation

12 or proceeding is carried on, or where the person resides

13 or carries on business, in order to enforce a subpoena is14 sued by the Secretary under subsection (b). The court may

15 issue an order requiring the person to comply with the

16 subpoena.

17 (d) CONTEMPT.—A failure to obey an order of the

18 court under this section may be punished by the court as

19 contempt of the court.

20 (e) PROCESS.—Process may be served on a person

21 in the judicial district in which the person resides or con22 ducts business or wherever the person may be found.

23 (f) HEARING SITE.—The site of a hearing held under

24 section 928 or 729 shall be in the judicial district where
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1 the person affected by the hearing resides or has a prin2 cipal place of business.

3 SEC. 931. SUSPENSION OR TERMINATION OF AN ORDER.

4 The Secretary shall, whenever the Secretary finds

5 that an order or a provision of an order obstructs or does

6 not tend to effectuate the declared policy of this subtitle,

7 terminate or suspend the operation of the order or provi8 sion. The termination or suspension of an order shall not

9 be considered an order within the meaning of this subtitle.

10 SEC. 932. REGULATIONS.

11 The Secretary may issue such regulations as are nec12 essary to carry out this subtitle.

13 SEC. 933. AUTHORIZATION OF APPROPRIATIONS.

14 (a) IN GENERAL.—There are authorized to be appro15 priated for each fiscal year such sums as are necessary

16 to carry out this subtitle.

17 (b) ADMINISTRATIVE EXPENSES.—Funds appro18 priated under subsection (a) shall not be available for pay19 ment of the expenses or expenditures of the Board in ad20 ministering a provision of an order issued under this sub21 title.

22 Subtitle C—Kiwifruit

23 SEC. 941. SHORT TITLE.

24 This subtitle may be cited as the ‘‘National Kiwifruit

25 Research, Promotion, and Consumer Information Act’’.
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1 SEC. 942. FINDINGS AND PURPOSES.

2 (a) FINDINGS.—Congress finds that—

3 (1) domestically produced kiwifruit are grown

4 by many individual producers;

5 (2) virtually all domestically produced kiwifruit

6 are grown in the State of California, although there

7 is potential for production in many other areas of

8 the United States;

9 (3) kiwifruit move in interstate and foreign

10 commerce, and kiwifruit that do not move in chan11 nels of commerce directly burden or affect interstate

12 commerce;

13 (4) in recent years, large quantities of kiwifruit

14 have been imported into the United States;

15 (5) the maintenance and expansion of existing

16 domestic and foreign markets for kiwifruit, and the

17 development of additional and improved markets for

18 kiwifruit, are vital to the welfare of kiwifruit produc19 ers and other persons concerned with producing,

20 marketing, and processing kiwifruit;

21 (6) a coordinated program of research, pro22 motion, and consumer information regarding

23 kiwifruit is necessary for the maintenance and devel24 opment of the markets; and
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1 (7) kiwifruit producers, handlers, and importers

2 are unable to implement and finance such a program

3 without cooperative action.

4 (b) PURPOSES.—The purposes of this subtitle are—

5 (1) to authorize the establishment of an orderly

6 procedure for the development and financing

7 (through an assessment) of an effective and coordi8 nated program of research, promotion, and

9 consumer information regarding kiwifruit;

10 (2) to use the program to strengthen the posi11 tion of the kiwifruit industry in domestic and foreign

12 markets and maintain, develop, and expand markets

13 for kiwifruit; and

14 (3) to treat domestically produced kiwifruit and

15 imported kiwifruit equitably.

16 SEC. 943. DEFINITIONS.

17 In this subtitle (unless the context otherwise re18 quires):

19 (1) BOARD.—The term ‘‘Board’’ means the Na20 tional Kiwifruit Board established under section

21 945.

22 (2) CONSUMER INFORMATION.—The term

23 ‘‘consumer information’’ means any action taken to

24 provide information to, and broaden the understand-
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1 ing of, the general public regarding the consumption,

2 use, nutritional attributes, and care of kiwifruit.

3 (3) EXPORTER.—The term ‘‘exporter’’ means

4 any person from outside the United States who ex5 ports kiwifruit into the United States.

6 (4) HANDLER.—The term ‘‘handler’’ means

7 any person, excluding a common carrier, engaged in

8 the business of buying and selling, packing, market9 ing, or distributing kiwifruit as specified in the

10 order.

11 (5) IMPORTER.—The term ‘‘importer’’ means

12 any person who imports kiwifruit into the United

13 States.

14 (6) KIWIFRUIT.—The term ‘‘kiwifruit’’ means

15 all varieties of fresh kiwifruit grown or imported in

16 the United States.

17 (7) MARKETING.—The term ‘‘marketing’’

18 means the sale or other disposition of kiwifruit into

19 interstate, foreign, or intrastate commerce by buy20 ing, marketing, distribution, or otherwise placing

21 kiwifruit into commerce.

22 (8) ORDER.—The term ‘‘order’’ means a

23 kiwifruit research, promotion, and consumer infor24 mation order issued by the Secretary under section

25 944.
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1 (9) PERSON.—The term ‘‘person’’ means any

2 individual, group of individuals, partnership, cor3 poration, association, cooperative, or other legal en4 tity.

5 (10) PROCESSING.—The term ‘‘processing’’

6 means canning, fermenting, distilling, extracting,

7 preserving, grinding, crushing, or in any manner

8 changing the form of kiwifruit for the purposes of

9 preparing the kiwifruit for market or marketing the

10 kiwifruit.

11 (11) PRODUCER.—The term ‘‘producer’’ means

12 any person who grows kiwifruit in the United States

13 for sale in commerce.

14 (12) PROMOTION.—The term ‘‘promotion’’

15 means any action taken under this subtitle (includ16 ing paid advertising) to present a favorable image

17 for kiwifruit to the general public for the purpose of

18 improving the competitive position of kiwifruit and

19 stimulating the sale of kiwifruit.

20 (13) RESEARCH.—The term ‘‘research’’ means

21 any type of research relating to the use, nutritional

22 value, and marketing of kiwifruit conducted for the

23 purpose of advancing the image, desirability, mar24 ketability, or quality of kiwifruit.
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1 (14) SECRETARY.—The term ‘‘Secretary’’

2 means the Secretary of Agriculture.

3 (15) UNITED STATES.—The term ‘‘United

4 States’’ means the 50 States of the United States,

5 the District of Columbia, and the Commonwealth of

6 Puerto Rico.

7 SEC. 944. ISSUANCE OF ORDERS.

8 (a) ISSUANCE.—To effectuate the declared purposes

9 of this subtitle, the Secretary shall issue an order applica10 ble to producers, handlers, and importers of kiwifruit. Any

11 such order shall be national in scope. Not more than 1

12 order shall be in effect under this subtitle at any 1 time.

13 (b) PROCEDURE.—

14 (1) PROPOSAL FOR ISSUANCE OF ORDER.—Any

15 person that will be affected by this subtitle may re16 quest the issuance of, and submit a proposal for, an

17 order under this subtitle.

18 (2) PROPOSED ORDER.—Not later than 90 days

19 after the receipt of a request and proposal for an

20 order, the Secretary shall publish a proposed order

21 and give due notice and opportunity for public com22 ment on the proposed order.

23 (3) ISSUANCE OF ORDER.—After notice and op24 portunity for public comment are provided under

25 paragraph (2), the Secretary shall issue an order,
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1 taking into consideration the comments received and

2 including in the order provisions necessary to ensure

3 that the order is in conformity with this subtitle.

4 (c) AMENDMENTS.—The Secretary may amend any

5 order issued under this section. The provisions of this sub6 title applicable to an order shall be applicable to an

7 amendment to an order.

8 SEC. 945. NATIONAL KIWIFRUIT BOARD.

9 (a) MEMBERSHIP.—An order issued by the Secretary

10 under section 944 shall provide for the establishment of

11 a National Kiwifruit Board that consists of the following

12 11 members:

13 (1) 6 members who are producers (or represent14 atives of producers) and who are not exempt from

15 an assessment under section 946(b).

16 (2) 4 members who are importers (or represent17 atives of importers) and who are not exempt from an

18 assessment under section 946(b) or are exporters (or

19 representatives of exporters).

20 (3) 1 member appointed from the general pub21 lic.

22 (b) ADJUSTMENT OF MEMBERSHIP.—Subject to the

23 11-member limit, the Secretary may adjust membership

24 on the Board to accommodate changes in production and

25 import levels of kiwifruit.
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1 (c) APPOINTMENT AND NOMINATION.—

2 (1) APPOINTMENT.—The Secretary shall ap3 point the members of the Board from nominations

4 submitted in accordance with this subsection.

5 (2) PRODUCERS.—The members referred to in

6 subsection (a)(1) shall be appointed from individuals

7 nominated by producers.

8 (3) IMPORTERS AND EXPORTERS.—The mem9 bers referred to in subsection (a)(2) shall be ap10 pointed from individuals nominated by importers or

11 exporters.

12 (4) PUBLIC REPRESENTATIVE.—The public rep13 resentative shall be appointed from nominations sub14 mitted by other members of the Board.

15 (5) FAILURE TO NOMINATE.—If producers, im16 porters, and exporters fail to nominate individuals

17 for appointment, the Secretary may appoint mem18 bers on a basis provided for in the order. If the

19 Board fails to nominate a public representative, the

20 member may be appointed by the Secretary without

21 a nomination.

22 (d) ALTERNATES.—The Secretary shall appoint an

23 alternate for each member of the Board. An alternate

24 shall—
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1 (1) be appointed in the same manner as the

2 member for whom the individual is an alternate; and

3 (2) serve on the Board if the member is absent

4 from a meeting or is disqualified under subsection

5 (f).

6 (e) TERMS.—A member of the Board shall be ap7 pointed for a term of 3 years. No member may serve more

8 than 2 consecutive 3-year terms, except that of the mem9 bers first appointed—

10 (1) 5 members shall be appointed for a term of

11 2 years; and

12 (2) 6 members shall be appointed for a term of

13 3 years.

14 (f) DISQUALIFICATION.—If a member or alternate of

15 the Board who was appointed as a producer, importer, ex16 porter, or public representative member ceases to belong

17 to the group for which the member was appointed, the

18 member or alternate shall be disqualified from serving on

19 the Board.

20 (g) COMPENSATION.—A members or alternate of the

21 Board shall serve without pay.

22 (h) GENERAL POWERS AND DUTIES.—The Board

23 shall—

24 (1) administer an order issued by the Secretary

25 under section 944, and an amendment to the order,
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1 in accordance with the order and amendment and

2 this subtitle;

3 (2) prescribe rules and regulations to carry out

4 the order;

5 (3) meet, organize, and select from among

6 members of the Board a chairperson, other officers,

7 and committees and subcommittees, as the Board

8 determines appropriate;

9 (4) receive, investigate, and report to the Sec10 retary accounts of violations of the order;

11 (5) make recommendations to the Secretary

12 with respect to an amendment that should be made

13 to the order; and

14 (6) employ or contract with a manager and

15 staff to assist in administering the order, except

16 that, to reduce administrative costs and increase ef17 ficiency, the Board shall seek, to the extent prac18 ticable, to employ or contract with personnel who are

19 already associated with State chartered organiza20 tions involved in promoting kiwifruit.

21 SEC. 946. REQUIRED TERMS IN ORDER.

22 (a) BUDGETS AND PLANS.—

23 (1) IN GENERAL.—An order issued under sec24 tion 944 shall provide for periodic budgets and plans

25 in accordance with this subsection.
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1 (2) BUDGETS.—The Board shall prepare and

2 submit to the Secretary a budget prior to the begin3 ning of the fiscal year of the anticipated expenses

4 and disbursements of the Board in the administra5 tion of the order, including probable costs of re6 search, promotion, and consumer information. A

budget shall become effective on a 2 7 ⁄3-vote of a

8 quorum of the Board and approval by the Secretary.

9 (3) PLANS.—Each budget shall include a plan

10 for research, promotion, and consumer information

11 regarding kiwifruit. A plan under this paragraph

12 shall become effective on approval by the Secretary.

13 The Board may enter into contracts and agree14 ments, on approval by the Secretary, for—

15 (A) the development of and carrying out

16 the plan; and

17 (B) the payment of the cost of the plan,

18 with funds collected pursuant to this subtitle.

19 (b) ASSESSMENTS.—

20 (1) IN GENERAL.—The order shall provide for

21 the imposition and collection of assessments with re22 gard to the production and importation of kiwifruit

23 in accordance with this subsection.

24 (2) RATE.—The assessment rate shall be the

reate that is recommended by a 2 25 ⁄3-vote of a quorum
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1 of the Board and approved by the Secretary, except

2 that the rate shall not exceed $0.10 per 7-pound

3 tray of kiwifruit or equivalent.

4 (3) COLLECTION BY FIRST HANDLERS.—Except

5 as provided in paragraph (5), the first handler of

6 kiwifruit shall—

7 (A) be responsible for the collection from

8 the producer, and payment to the Board, of as9 sessments required under this subsection; and

10 (B) maintain a separate record of the

11 kiwifruit of each producer whose kiwifruit are

12 so handled, including the kiwifruit owned by the

13 handler.

14 (4) IMPORTERS.—The assessment on imported

15 kiwifruit shall be paid by the importer to the United

16 States Customs Service at the time of entry into the

17 United States and shall be remitted to the Board.

18 (5) EXEMPTION FROM ASSESSMENT.—The fol19 lowing persons or activities are exempt from an as20 sessment under this subsection:

21 (A) A producer who produces less than

22 500 pounds of kiwifruit per year.

23 (B) An importer who imports less than

24 10,000 pounds of kiwifruit per year.
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1 (C) A sale of kiwifruit made directly from

2 the producer to a consumer for a purpose other

3 than resale.

4 (D) The production or importation of

5 kiwifruit for processing.

6 (6) CLAIM OF EXEMPTION.—To claim an ex7 emption under paragraph (5) for a particular year,

8 a person shall—

9 (A) submit an application to the Board

10 stating the basis for the exemption and certify11 ing that the quantity of kiwifruit produced, im12 ported, or sold by the person will not exceed

13 any poundage limitation required for the ex14 emption in the year; or

15 (B) be on a list of approved processors de16 veloped by the Board.

17 (c) USE OF ASSESSMENTS.

18 (1) AUTHORIZED USES.—The order shall pro19 vide that funds paid to the Board as assessments

20 under subsection (b) may be used by the Board—

21 (A) to pay for research, promotion, and

22 consumer information described in the budget

23 of the Board under subsection (a) and for other

24 expenses incurred by the Board in the adminis25 tration of an order;
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1 (B) to pay such other expenses for the ad2 ministration, maintenance, and functioning of

3 the Board, including any enforcement efforts

4 for the collection of assessments as may be au5 thorized by the Secretary, including interest

6 and penalties for late payments; and

7 (C) to fund a reserve established under

8 section 947(d).

9 (2) REQUIRED USES.—The order shall provide

10 that funds paid to the Board as assessments under

11 subsection (b) shall be used by the Board—

12 (A) to pay the expenses incurred by the

13 Secretary, including salaries and expenses of

14 Federal Government employees, in implement15 ing and administering the order; and

16 (B) to reimburse the Secretary for any ex17 penses incurred by the Secretary in conducting

18 referenda under this subtitle.

19 (3) LIMITATION ON USE OF ASSESSMENTS.—

20 Except for the first year of operation of the Board,

21 expenses for the administration, maintenance, and

22 functioning of the Board may not exceed 30 percent

23 of the budget for a year.
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1 (d) FALSE CLAIMS.—The order shall provide that

2 any promotion funded with assessments collected under

3 subsection (b) may not make—

4 (1) any false claims on behalf of kiwifruit; and

5 (2) any false statements with respect to the at6 tributes or use of any product that competes with

7 kiwifruit for sale in commerce.

8 (e) PROHIBITION ON USE OF FUNDS.—The order

9 shall provide that funds collected by the Board under this

10 subtitle through assessments may not, in any manner, be

11 used for the purpose of influencing legislation or govern12 mental policy or action, except for making recommenda13 tions to the Secretary as provided for under this subtitle.

14 (f) BOOKS, RECORDS, AND REPORTS.—

15 (1) BOARD.—The order shall require the

16 Board—

17 (A) to maintain books and records with re18 spect to the receipt and disbursement of funds

19 received by the Board;

20 (B) to submit to the Secretary from time

21 to time such reports as the Secretary may re22 quire for appropriate accounting; and

23 (C) to submit to the Secretary at the end

24 of each fiscal year a complete audit report by
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1 an independent auditor regarding the activities

2 of the Board during the fiscal year.

3 (2) OTHERS.—To make information and data

4 available to the Board and the Secretary that is ap5 propriate or necessary for the effectuation, adminis6 tration, or enforcement of this subtitle (or any order

7 or regulation issued under this subtitle), the order

8 shall require handlers and importers who are respon9 sible for the collection, payment, or remittance of as10 sessments under subsection (b)—

11 (A) to maintain and make available for in12 spection by the employees and agents of the

13 Board and the Secretary such books and

14 records as may be required by the order; and

15 (B) to file, at the times and in the manner

16 and content prescribed by the order, reports re17 garding the collection, payment, or remittance

18 of the assessments.

19 (g) CONFIDENTIALITY.—

20 (1) IN GENERAL.—The order shall require that

21 all information obtained pursuant to subsection

22 (f)(2) be kept confidential by all officers and employ23 ees and agents of the Department and of the Board.

24 Only such information as the Secretary considers

25 relevant shall be disclosed to the public and only in
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1 a suit or administrative hearing, brought at the re2 quest of the Secretary or to which the Secretary or

3 any officer of the United States is a party, involving

4 the order with respect to which the information was

5 furnished or acquired.

6 (2) LIMITATIONS.—Nothing in this subsection

7 prohibits—

8 (A) issuance of general statements based

9 on the reports of a number of handlers and im10 porters subject to an order, if the statements do

11 not identify the information furnished by any

12 person; or

13 (B) the publication, by direction of the

14 Secretary, of the name of any person violating

15 an order issued under section 944(a), together

16 with a statement of the particular provisions of

17 the order violated by the person.

18 (3) PENALTY.—Any person who willfully vio19 lates this subsection, on conviction, shall be subject

20 to a fine of not more than $1,000 or to imprison21 ment for not more than 1 year, or both, and, if the

22 person is a member, officer, or agent of the board

23 or an employee of the Department, shall be removed

24 from office.
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1 (h) WITHHOLDING INFORMATION.—Nothing in this

2 subtitle authorizes the withholding of information from

3 Congress.

4 SEC. 947. PERMISSIVE TERMS IN ORDER.

5 (a) PERMISSIVE TERMS.—On the recommendation of

6 the Board and with the approval of the Secretary, an order

7 issued under section 944 may include the terms and condi8 tions specified in this section and such additional terms

9 and conditions as the Secretary considers necessary to ef10 fectuate the other provisions of the order and are inciden11 tal to, and not inconsistent with, this subtitle.

12 (b) ALTERNATIVE PAYMENT AND REPORTING

13 SCHEDULES.—The order may authorize the Board to des14 ignate different handler payment and reporting schedules

15 to recognize differences in marketing practices and proce16 dures.

17 (c) WORKING GROUPS.—The order may authorize

18 the Board to convene working groups drawn from produc19 ers, handlers, importers, exporters, or the general public

20 and utilize the expertise of the groups to assist in the de21 velopment of research and marketing programs for

22 kiwifruit.

23 (d) RESERVE FUNDS.—The order may authorize the

24 Board to accumulate reserve funds from assessments col25 lected pursuant to section 946(b) to permit an effective
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1 and continuous coordinated program of research, pro2 motion, and consumer information in years in which pro3 duction and assessment income may be reduced, except

4 that any reserve fund may not exceed the amount budg5 eted for operation of this subtitle for 1 year.

6 (e) PROMOTION ACTIVITIES OUTSIDE UNITED

7 STATES.—The order may authorize the Board to use, with

8 the approval of the Secretary, funds collected under sec9 tion 946(b) and funds from other sources for the develop10 ment and expansion of sales in foreign markets of

11 kiwifruit produced in the United States.

12 SEC. 948. PETITION AND REVIEW.

13 (a) PETITION.—

14 (1) IN GENERAL.—A person subject to an order

15 may file with the Secretary a petition—

16 (A) stating that the order, a provision of

17 the order, or an obligation imposed in connec18 tion with the order is not in accordance with

19 law; and

20 (B) requesting a modification of the order

21 or an exemption from the order.

22 (2) HEARINGS.—A person submitting a petition

23 under paragraph (1) shall be given an opportunity

24 for a hearing on the petition, in accordance with reg25 ulations issued by the Secretary.
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1 (3) RULING.—After the hearing, the Secretary

2 shall make a ruling on the petition which shall be

3 final if the petition is in accordance with law.

4 (4) LIMITATION ON PETITION.—Any petition

5 filed under this subtitle challenging an order, or any

6 obligation imposed in connected with an order, shall

7 be filed not later than 2 years after the effective

8 date of the order or obligation.

9 (b) REVIEW.—

10 (1) COMMENCEMENT OF ACTION.—The district

11 court of the United States in any district in which

12 the person who is a petitioner under subsection (a)

13 resides or carries on business is vested with jurisdic14 tion to review the ruling on the petition of the per15 son, if a complaint for that purpose is filed not later

16 than 20 days after the date of the entry of a ruling

17 by the Secretary under subsection (a).

18 (2) PROCESS.—Service of process in the pro19 ceedings shall be conducted in accordance with the

20 Federal Rules of Civil Procedure.

21 (3) REMANDS.—If the court determines that

22 the ruling is not in accordance with law, the court

23 shall remand the matter to the Secretary with direc24 tions—
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1 (A) to make such ruling as the court shall

2 determine to be in accordance with law; or

3 (B) to take such further action as, in the

4 opinion of the court, the law requires.

5 (4) ENFORCEMENT.—The pendency of a pro6 ceeding instituted pursuant to subsection (a) shall

7 not impede, hinder, or delay the Attorney General or

8 the Secretary from obtaining relief pursuant to sec9 tion 949.

10 SEC. 949. ENFORCEMENT.

11 (a) JURISDICTION.—A district court of the United

12 States shall have jurisdiction specifically to enforce, and

13 to prevent and restrain any person from violating, any

14 order or regulation made or issued by the Secretary under

15 this subtitle.

16 (b) REFERRAL TO ATTORNEY GENERAL.—A civil ac17 tion authorized to be brought under this section shall be

18 referred to the Attorney General for appropriate action,

19 except that the Secretary is not required to refer to the

20 Attorney General a violation of this subtitle, or any order

21 or regulation issued under this subtitle, if the Secretary

22 believes that the administration and enforcement of this

23 subtitle would be adequately served by administrative ac24 tion under subsection (c) or suitable written notice or

25 warning to any person committing the violation.
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1 (c) CIVIL PENALTIES AND ORDERS.—

2 (1) CIVIL PENALTIES.—Any person who will3 fully violates any provision of any order or regula4 tion issued by the Secretary under this subtitle, or

5 who fails or refuses to pay, collect, or remit any as6 sessment or fee duly required of the person under

7 the order or regulation, may be assessed a civil pen8 alty by the Secretary of not less than $500 nor more

9 than $5,000 for each such violation. Each violation

10 shall be a separate offense.

11 (2) CEASE-AND-DESIST ORDERS.—In addition

12 to or in lieu of the civil penalty, the Secretary may

13 issue an order requiring the person to cease and de14 sist from continuing the violation.

15 (3) NOTICE AND HEARING.—No order assessing

16 a civil penalty or cease-and-desist order may be is17 sued by the Secretary under this subsection unless

18 the Secretary gives the person against whom the

19 order is issued notice and opportunity for a hearing

20 on the record before the Secretary with respect to

21 the violation.

22 (4) FINALITY.—The order of the Secretary as23 sessing a penalty or imposing a cease-and-desist

24 order shall be final and conclusive unless the person

25 against whom the order is issued files an appeal
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1 from the order with the appropriate district court of

2 the United States, in accordance with subsection (d).

3 (d) REVIEW BY UNITED STATES DISTRICT COURT.—

4 (1) COMMENCEMENT OF ACTION.—Any person

5 against whom a violation is found and a civil penalty

6 assessed or cease-and-desist order issued under sub7 section (c) may obtain review of the penalty or order

8 in the district court of the United States for the dis9 trict in which the person resides or does business, or

10 the United States district court for the District of

11 Columbia, by—

12 (A) filing a notice of appeal in the court

13 not later than 30 days after the date of the

14 order; and

15 (B) simultaneously sending a copy of the

16 notice by certified mail to the Secretary.

17 (2) RECORD.—The Secretary shall promptly file

18 in the court a certified copy of the record on which

19 the Secretary found that the person had committed

20 a violation.

21 (3) STANDARD OF REVIEW.—A finding of the

22 Secretary shall be set aside only if the finding is

23 found to be unsupported by substantial evidence.

24 (e) FAILURE TO OBEY ORDERS.—Any person who

25 fails to obey a cease-and-desist order issued by the Sec-
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1 retary after the order has become final and unappealable,

2 or after the appropriate United States district court has

3 entered a final judgment in favor of the Secretary, shall

4 be subject to a civil penalty assessed by the Secretary,

5 after opportunity for a hearing and for judicial review

6 under the procedures specified in subsections (c) and (d),

7 of not more than $500 for each offense. Each day during

8 which the failure continues shall be considered a separate

9 violation of the order.

10 (f) FAILURE TO PAY PENALTIES.—If a person fails

11 to pay an assessment of a civil penalty after the assess12 ment has become a final and unappealable order issued

13 by the Secretary, or after the appropriate United States

14 district court has entered final judgment in favor of the

15 Secretary, the Secretary shall refer the matter to the At16 torney General for recovery of the amount assessed in the

17 district court of the United States in any district in which

18 the person resides or conducts business. In the action, the

19 validity and appropriateness of the final order imposing

20 the civil penalty shall not be subject to review.

21 SEC. 950. INVESTIGATIONS AND POWER TO SUBPOENA.

22 (a) IN GENERAL.—The Secretary may make such in23 vestigations as the Secretary considers necessary—

24 (1) for the effective carrying out of the respon25 sibilities of the Secretary under this subtitle; or
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1 (2) to determine whether a person subject to

2 this subtitle has engaged or is engaging in any act

3 that constitutes a violation of this subtitle, or any

4 order, rule, or regulation issued under this subtitle.

5 (b) POWER TO SUBPOENA.—

6 (1) INVESTIGATIONS.—For the purpose of an

7 investigation made under subsection (a), the Sec8 retary may administer oaths and affirmations and

9 may issue subpoenas to require the production of

10 any records that are relevant to the inquiry. The

11 production of any such records may be required

12 from any place in the United States.

13 (2) ADMINISTRATIVE HEARINGS.—For the pur14 pose of an administrative hearing held under section

15 948 or 949, the presiding officer is authorized to ad16 minister oaths and affirmations, subpoena witnesses,

17 compel the attendance of witnesses, take evidence,

18 and require the production of any records that are

19 relevant to the inquiry. The attendance of witnesses

20 and the production of any such records may be re21 quired from any place in the United States.

22 (c) AID OF COURTS.—In the case of contumacy by,

23 or refusal to obey a subpoena to, any person, the Secretary

24 may invoke the aid of any court of the United States with25 in the jurisdiction of which the investigation or proceeding
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1 is carried on, or where the person resides or carries on

2 business, to enforce a subpoena issued by the Secretary

3 under subsection (b). The court may issue an order requir4 ing the person to comply with the subpoena.

5 (d) CONTEMPT.—Any failure to obey the order of the

6 court may be punished by the court as a contempt of the

7 order.

8 (e) PROCESS.—Process in any such case may be

9 served in the judicial district of which the person resides

10 or conducts business or wherever the person may be found.

11 (f) HEARING SITE.—The site of any hearing held

12 under section 948 or 949 shall be within the judicial dis13 trict where the person is an inhabitant or has a principal

14 place of business.

15 SEC. 951. REFERENDA.

16 (a) INITIAL REFERENDUM.—

17 (1) REFERENDUM REQUIRED.—During the 60-

18 day period immediately preceding the proposed effec19 tive date of an order issued under section 944, the

20 Secretary shall conduct a referendum among

21 kiwifruit producers and importers who will be sub22 ject to assessments under the order, to ascertain

23 whether producers and importers approve the imple24 mentation of the order.
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1 (2) APPROVAL OF ORDER.—The order shall be2 come effective, as provided in section 944, if the

3 Secretary determines that—

4 (A) the order has been approved by a ma5 jority of the producers and importers voting in

6 the referendum; and

7 (B) the producers and importers produce

8 and import more than 50 percent of the total

9 volume of kiwifruit produced and imported by

10 persons voting in the referendum.

11 (b) SUBSEQUENT REFERENDA.—The Secretary may

12 periodically conduct a referendum to determine if kiwifruit

13 producers and importers favor the continuation, termi14 nation, or suspension of any order issued under section

15 944 that is in effect at the time of the referendum.

16 (c) REQUIRED REFERENDA.—The Secretary shall

17 hold a referendum under subsection (b)—

18 (1) at the end of the 6-year period beginning on

19 the effective date of the order and at the end of each

20 subsequent 6-year period;

21 (2) at the request of the Board; or

22 (3) if not less than 30 percent of the kiwifruit

23 producers and importers subject to assessments

24 under the order submit a petition requesting the ref25 erendum.
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1 (d) VOTE.—On completion of a referendum under

2 subsection (b), the Secretary shall suspend or terminate

3 the order that was subject to the referendum at the end

4 of the marketing year if—

5 (1) the suspension or termination of the order

6 is favored by not less than a majority of the produc7 ers and importers voting in the referendum; and

8 (2) the producers and importers produce and

9 import more than 50 percent of the total volume of

10 kiwifruit produced and imported by persons voting

11 in the referendum.

12 (e) CONFIDENTIALITY.—The ballots and other infor13 mation or reports that reveal, or tend to reveal, the vote

14 of any person under this subtitle and the voting list shall

15 be held strictly confidential and shall not be disclosed.

16 SEC. 952. SUSPENSION AND TERMINATION OF ORDER BY

17 SECRETARY.

18 (a) IN GENERAL.—If the Secretary finds that an

19 order issued under section 944, or a provision of the order,

20 obstructs or does not tend to effectuate the purposes of

21 this subtitle, the Secretary shall terminate or suspend the

22 operation of the order or provision.

23 (b) LIMITATION.—The termination or suspension of

24 any order, or any provision of an order, shall not be con25 sidered an order under this subtitle.
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1 SEC. 953. REGULATIONS.

2 The Secretary may issue such regulations as are nec3 essary to carry out this subtitle.

4 SEC. 954. AUTHORIZATION OF APPROPRIATIONS.

5 There are authorized to be appropriated such funds

6 as are necessary to carry out this subtitle for each fiscal

7 year.

8 Subtitle D—Commodity Promotion

9 and Evaluation

10 SEC. 961. COMMODITY PROMOTION AND EVALUATION.

11 (a) FINDINGS.—Congress finds that—

12 (1) it is in the national public interest and vital

13 to the welfare of the agricultural economy of the

14 United States to expand and develop markets for ag15 ricultural commodities through generic, industry16 funded promotion programs;

17 (2) the programs play a unique role in advanc18 ing the demand for agricultural commodities, since

19 the programs increase the total market for a product

20 to the benefit of consumers and all producers;

21 (3) the programs complement branded advertis22 ing initiatives, which are aimed at increasing the

23 market share of individual competitors;

24 (4) the programs are of particular benefit to

25 small producers, who may lack the resources or mar26 ket power to advertise on their own;
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1 (5) the programs do not impede the branded

2 advertising efforts of individual firms but instead in3 crease market demand by methods that each individ4 ual entity would not have the incentive to employ;

5 (6) the programs, paid for by the producers

6 who directly reap the benefits of the programs, pro7 vide a unique opportunity for agricultural producers

8 to inform consumers about their products;

9 (7) it is important to ensure that the programs

10 be carried out in an effective and coordinated man11 ner that is designed to strengthen the position of the

12 commodities in the marketplace and to maintain and

13 expand the markets and uses of the commodities;

14 and

15 (8) independent evaluation of the effectiveness

16 of the programs will assist Congress and the Sec17 retary of Agriculture in ensuring that the objectives

18 of the programs are met.

19 (b) INDEPENDENT EVALUATIONS.—Except as other20 wise provided by law, and at such intervals as the Sec21 retary of Agriculture may determine, but not more fre22 quently than every 3 years or 3 years after the establish23 ment of a program, the Secretary shall require that each

24 industry-funded generic promotion program authorized by

25 Federal law for an agricultural commodity shall provide
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1 for an independent evaluation of the program and the ef2 fectiveness of the program. The evaluation may include

3 an analysis of benefits, costs, and the efficacy of pro4 motional and research efforts under the program. The

5 evaluation shall be funded from industry assessments and

6 made available to the public.

7 (c) ADMINISTRATIVE COSTS.—The Secretary shall

8 provide to Congress annually information on administra9 tive expenses on programs referred to in subsection (b).

Passed the Senate February 7, 1996.

Attest:

Secretary.
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104TH CONGRESS

2D SESSION S. 1541

AN ACT

To extend, reform, and improve agricultural comand for other purposes. modity, trade, conservation, and other programs,