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TITLE I—COMMITTEE ON AGRI-
CULTURE, 
NUTRITION, 
AND
FORESTRY
SEC. 1001. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This title may be cited as the ‘‘Ag-
ricultural Reconciliation Act of 1995’’.
(b) TABLE OF CONTENTS.—The table of contents of this
title is as follows:
Sec. 1001. Short title; table of contents.
Subtitle A—Commodity Programs
Sec. 1101. Eligibility for enrollment in annual programs.
Sec. 1102. Rice program.
Sec. 1103. Cotton program.
Sec. 1104. Feed grain program.
Sec. 1105. Wheat program.
Sec. 1106. Milk program.
Sec. 1107. Oilseeds program.
Sec. 1108. Sugar program.
Sec. 1109. Acreage base and yield system.
Sec. 1110. Extension of related price support provisions.
Sec. 1111. Repeal of miscellaneous authorities.
Sec. 1112. Commodity Credit Corporation interest rate.
Sec. 1113. Peanut program.
Sec. 1114. Catastrophic crop insurance coverage.
Sec. 1115. Savings adjustment.
Sec. 1116. Sense of the Senate regarding tax provisions relating to ethanol.
Sec. 1117. Effective date.
Subtitle B—Conservation
Sec. 1201. Conservation.
Subtitle C—Agricultural Promotion and Export Programs
Sec. 1301. Market promotion program.
Sec. 1302. Export enhancement program.
Sec. 1303. Export of sunflowerseed oil and cottonseed oil.
Subtitle D—Nutrition Assistance
CHAPTER 1—FOOD STAMP PROGRAM
Sec. 1401. Treatment of children living at home.
Sec. 1402. Optional additional criteria for separate household determinations.
Sec. 1403. Adjustment of thrifty food plan.
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Sec. 1404. Definition of homeless individual.
Sec. 1405. State options in regulations.
Sec. 1406. Energy assistance.
Sec. 1407. Deductions from income.
Sec. 1408. Amount of vehicle asset limitation.
Sec. 1409. Benefits for aliens.
Sec. 1410. Disqualification.
Sec. 1411. Employment and training.
Sec. 1412. Income calculation.
Sec. 1413. Comparable treatment for disqualification.
Sec. 1414. Cooperation with child support agencies.
Sec. 1415. Disqualification for child support arrears.
Sec. 1416. Permanent disqualification for participating in 2 or more States.
Sec. 1417. Work requirement.
Sec. 1418. Disqualification of fleeing felons.
Sec. 1419. Electronic benefit transfers.
Sec. 1420. Minimum benefit.
Sec. 1421. Benefits on recertification.
Sec. 1422. Failure to comply with other welfare and public assistance programs.
Sec. 1423. Allotments for households residing in institutions.
Sec. 1424. Collection of overissuances.
Sec. 1425. Termination of Federal match for optional information activities.
Sec. 1426. Work supplementation or support program.
Sec. 1427. Private sector employment initiatives.
Sec. 1428. Reauthorization of appropriations.
Sec. 1429. Optional State food assistance block grant.
Sec. 1430. Effective date.
CHAPTER 2—CHILD NUTRITION PROGRAMS
PART I—REIMBURSEMENT RATES
Sec. 1441. Termination of additional payment for lunches served in high free and
reduced price participation schools.
Sec. 1442. Lunches, breakfasts, and supplements.
Sec. 1443. Free and reduced price breakfasts.
Sec. 1444. Conforming reimbursement for paid breakfasts and lunches.
PART II—GRANT PROGRAMS
Sec. 1451. School breakfast startup grants.
PART III—OTHER AMENDMENTS
Sec. 1461. Child and adult care food program.
CHAPTER 3—ADDITIONAL SAVINGS
Sec. 1471. Earnings of students.
Sec. 1472. Standard deduction.
Sec. 1473. Vendor payments for transitional housing counted as income.
Sec. 1474. Extending claims retention rates.
Sec. 1475. Reauthorization of Puerto Rico nutrition assistance program.
Sec. 1476. Value of food assistance.
Sec. 1477. Commodity assistance.
Sec. 1478. Summer food service program for children.
Sec. 1479. Special milk program.
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Sec. 1480. Nutrition education and training programs.
Sec. 1481. Effective date.
CHAPTER 4—EFFECTIVE DATE
Sec. 1491. Effective date.
Subtitle A—Commodity Programs
SEC. 1101. ELIGIBILITY FOR ENROLLMENT IN ANNUAL PRO-
GRAMS.
(a) IN GENERAL.—Title III of the Agricultural Act of
1949 (7 U.S.C. 1447 et seq.) is amended to read as follows:
‘‘TITLE III—ANNUAL PROGRAMS
FOR 1996 THROUGH 2002 CROPS
‘‘SEC. 301. ELIGIBILITY FOR ENROLLMENT IN ANNUAL PRO-
GRAMS.
‘‘(a) IN GENERAL.—To be eligible for enrollment in
1 or more of the annual programs established under this
title, the land on a farm must have been enrolled in 1 or
more of the annual programs established under this Act for
rice, upland cotton, feed grains, or wheat for a total of at
least 3 of the 1991 through 1995 crop years, as determined
by the Secretary.
‘‘(b) ADDITIONAL CRITERIA.—In addition to the re-
quirements of subsection (a), for the purpose of determining
the eligibility of land for enrollment in 1 or more of the
annual programs established under this title, the Secretary
shall include acreage on the farm considered planted under
section 503(c), including a certification of crop acreage base
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filed with the Secretary in order to preserve base history,
for any of the 1991 through 1995 crops.
‘‘(c) ELIGIBILITY
TO
RECEIVE
PAYMENTS
AND
LOANS.—Enrollment in the annual program for a program
crop shall be required as a condition of the receipt of any
payment or loan under this title for the program crop.’’.
(b) CONFORMING AMENDMENTS.—The Agricultural
Act of 1949 is amended—
(1) in title I (7 U.S.C. 1441 et seq.)—
(A) by striking all sections other than sec-
tions 101B, 103B, 104(d), 105B, 106, 106A,
106B, 107B, 108B, 111, 114, and 115; and
(B) by moving sections 101B, 103B, 105B,
and 107B to the end of title III (as amended by
subsection (a)) and redesignating the sections as
sections 302, 303, 304, and 305, respectively;
(2) in title II (7 U.S.C. 1446 et seq.), by striking
all sections other than sections 202, 204, 205, and
206; and
(3) by striking title VI (7 U.S.C. 1471 et seq.).
SEC. 1102. RICE PROGRAM.
Section 302 of the Agricultural Act of 1949 (as redesig-
nated by section 1101(b)(1)(B)) is amended—
(1) by striking the section heading and inserting
the following:
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‘‘SEC. 302. LOANS AND PAYMENTS FOR THE 1991 THROUGH
2002 CROPS OF RICE.’’;
(2) in subsection (a)—
(A) in paragraph (1), by striking ‘‘1995’’
and inserting ‘‘2002’’;
(B) in paragraph (3), by striking ‘‘1995’’
and inserting ‘‘2002’’; and
(C) in paragraph (5)(D)(i), by striking
‘‘August 1, 1991, and ending July 31, 1996’’ and
inserting ‘‘August 1, 1996, and ending July 31,
2003’’;
(3) in subsection (b)(1), by striking ‘‘1995’’ and
inserting ‘‘2002’’;
(4) in subsection (c)(1)—
(A) in subparagraph (A), by striking
‘‘1995’’ and inserting ‘‘2002’’;
(B) in subparagraph (B)—
(i) in clause (ii)—
(I) in the clause heading, by strik-
ing 
‘‘AND
1995’’ 
and 
inserting
‘‘THROUGH 2002’’; and
(II) by striking ‘‘and 1995’’ and
inserting ‘‘through 2002’’;
(ii) by redesignating clause (iii) as
clause (iv);
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(iii) by inserting after clause (ii) the
following:
‘‘(iii) MAXIMUM PAYMENT RATE.—The
payment rate for rice under this subsection
shall not exceed (per hundredweight) $4.21
for the 1996 crop, $4.19 for the 1997 crop,
$3.86 for the 1998 crop, $3.48 for the 1999
crop, $3.23 for the 2000 crop, $2.89 for the
2001 crop, and $2.66 for the 2002 crop.’’;
and
(iv) in clause (iv) (as so redesignated),
by striking ‘‘1995’’ and inserting ‘‘2002’’;
(C) in subparagraph (C)—
(i) in clause (i), by striking ‘‘within
the permitted acreage’’; and
(ii) in clause (ii)—
(I) by striking ‘‘85 percent’’ and
inserting ‘‘70 percent’’; and
(II) by striking ‘‘less the quan-
tity’’ and all that follows through
‘‘(e)(2)(D))’’;
(D) in subparagraph (D)—
(i) in the subparagraph heading, by
striking ‘‘50/85’’ and inserting ‘‘25/75’’;
(ii) in clause (i)—
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(I) by striking ‘‘an acreage’’ and
all that follows through ‘‘rice and’’;
(II) by striking ‘‘15 percent’’ each
place it appears and inserting ‘‘25 per-
cent’’;
(III) by striking ‘‘1997 crops (ex-
cept as provided in clause (v)(II))’’
each place it appears and inserting
‘‘2002 crops’’;
(IV) by striking ‘‘(except as pro-
vided in subparagraph (E))’’ each
place it appears and inserting ‘‘or al-
ternative crops described in subpara-
graph (E)’’; and
(V) in subclause (I), by striking
‘‘for the purpose’’ and all that follows
through ‘‘(e)(2)(D)’’;
(iii) in clause (ii), by striking ‘‘50 per-
cent’’ and inserting ‘‘25 percent’’;
(iv) in clause (iii), by striking ‘‘(or
other uses as provided in subparagraph
(E))’’ and inserting ‘‘or alternative crops
described in subparagraph (E)’’;
(v) in clause (v)—
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(I) in the clause heading, by strik-
ing ‘‘PREVENTED PLANTING AND RE-
DUCED’’ and inserting ‘‘REDUCED’’;
(II) in the first sentence of
subclause (I), by striking ‘‘under sub-
section (e)’’; and
(III) in subclause (II)—
(aa) in the subclause head-
ing, by striking ‘‘1997’’ and insert-
ing ‘‘2002’’;
(bb) by striking ‘‘1997’’ and
inserting ‘‘2002’’;
(cc) by striking ‘‘if an acre-
age limitation’’ and all that fol-
lows through ‘‘(aa) the’’ and in-
serting ‘‘if the’’;
(dd) by striking ‘‘be pre-
vented from planting the crop or’’;
(ee) by striking ‘‘8 percent’’
the first place it appears and in-
serting ‘‘25 percent’’; and
(ff) by striking ‘‘uses; or’’
and all that follows through the
period at the end of the subclause
and inserting ‘‘uses.’’;
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(vi) in clause (vi), by striking ‘‘per-
mitted rice’’ and all that follows through
‘‘this subparagraph’’ and inserting ‘‘rice
payment acres of the farm was devoted to
conserving uses or alternative crops de-
scribed in subparagraph (E)’’; and
(vii) by striking clause (viii); and
(E) in the first sentence of subparagraph
(E)(ii), by inserting before the period at the end
the following: ‘‘or other oilseeds as determined by
the Secretary’’;
(5) by striking subsection (e) and inserting the
following:
‘‘(e) HAYING AND GRAZING.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), haying and grazing of acreage under sub-
section (c)(1)(C) shall be permitted, except during
any consecutive 5-month period that is established by
the State committee established under section 8(b) of
the Soil Conservation and Domestic Allotment Act
(16 U.S.C. 590h(b)) for a State. The 5-month period
shall be established during the period beginning April
1, and ending October 31, of a year.
‘‘(2) NATURAL DISASTERS.—In the case of a nat-
ural disaster, the Secretary may permit unlimited
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haying and grazing on the acreage. The Secretary
may not exclude irrigated or irrigable acreage not
planted to alfalfa when exercising the authority under
this paragraph.’’;
(6) in subsection (f)—
(A) in paragraph (1), by striking ‘‘1995’’
and inserting ‘‘2002’’; and
(B) in paragraph (4)(C), by striking ‘‘re-
duced by’’ and all that follows through ‘‘sub-
section (e)’’; and
(7) in subsection (n), by striking ‘‘1995’’ and in-
serting ‘‘2002’’.
SEC. 1103. COTTON PROGRAM.
Section 303 of the Agricultural Act of 1949 (as redesig-
nated by section 1101(b)(1)(B)) is amended—
(1) by striking the section heading and inserting
the following:
‘‘SEC. 303. LOANS AND PAYMENTS FOR THE 1991 THROUGH
2002 CROPS OF UPLAND COTTON.’’;
(2) in subsection (a)—
(A) in paragraph (1), by striking ‘‘1997’’
and inserting ‘‘2002’’;
(B) by striking paragraph (4) and inserting
the following:
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‘‘(4) STORAGE PAYMENTS.—The producer shall
pay the cost of all storage payments incurred for a
10-month nonrecourse loan.’’; and
(C) in paragraph (5)—
(i) by striking ‘‘August 1, 1991, and
ending July 31, 1998’’ each place it ap-
pears and inserting ‘‘August 1, 1996, and
ending July 31, 2003’’;
(ii) in subparagraph (E), by striking
‘‘1.25 cents’’ each place it appears and in-
serting ‘‘2.50 cents’’; and
(iii) in subparagraph (F)(i), by strik-
ing ‘‘August 1991 and ending July 31,
1998’’ and inserting ‘‘August 1, 1996, and
ending July 31, 2003’’;
(3) in subsection (b)(1), by striking ‘‘1997’’ and
inserting ‘‘2002’’;
(4) in subsection (c)(1)—
(A) in subparagraph (A), by striking
‘‘1997’’ and inserting ‘‘2002’’;
(B) in subparagraph (B)—
(i) by redesignating clause (ii) as
clause (iii);
(ii) by inserting after clause (i) the fol-
lowing:
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‘‘(ii) MAXIMUM PAYMENT RATE.—The
payment rate for upland cotton under this
subsection shall not exceed (per pound) 8.6
cents for the 1996 crop, 12.1 cents for the
1997 crop, 13.1 cents for the 1998 crop,
13.6 cents for the 1999 crop, 13.0 cents for
the 2000 crop, 12.0 cents for the 2001 crop,
and 11.5 cents for the 2002 crop.’’; and
(iii) in clause (iii) (as so redesig-
nated), by striking ‘‘1997’’ and inserting
‘‘2002’’;
(C) in subparagraph (C)—
(i) in clause (i), by striking ‘‘within
the permitted acreage’’; and
(ii) in clause (ii)—
(I) by striking ‘‘85 percent’’ and
inserting ‘‘70 percent’’; and
(II) by striking ‘‘less the quan-
tity’’ and all that follows through
‘‘(e)(2)(D))’’;
(D) in subparagraph (D)—
(i) in the subparagraph heading, by
striking ‘‘50/85’’ and inserting ‘‘0/85’’;
(ii) in clause (i)—
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(I) by striking ‘‘an acreage’’ and
all that follows through ‘‘cotton and’’;
(II) by striking ‘‘1997 crops (ex-
cept as provided in clause (v)(II))’’
each place it appears and inserting
‘‘2002 crops’’;
(III) by striking ‘‘(except as pro-
vided in subparagraph (E))’’ each
place it appears and inserting ‘‘or al-
ternative crops described in subpara-
graph (E)’’;
(IV) in subclause (I), by striking
‘‘for the purpose’’ and all that follows
through ‘‘(e)(2)(D)’’; and
(V) in subclause (II), by striking
‘‘, subject to the compliance of the pro-
ducers with clause (ii)’’;
(iii) by striking clauses (ii) and (viii);
(iv) by redesignating clauses (iii)
through (vii) and clause (ix) as clauses (ii)
through (vi) and clause (vii), respectively;
(v) in clause (ii) (as so redesignated),
by striking ‘‘(or other uses as provided in
subparagraph (E))’’ and inserting ‘‘or al-
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ternative crops described in subparagraph
(E)’’;
(vi) in clause (iii) (as so redesignated),
by striking ‘‘, without regard to the require-
ment imposed under clause (ii),’’;
(vii) in clause (iv) (as so redesig-
nated)—
(I) in the clause heading, by strik-
ing ‘‘PREVENTED PLANTING AND RE-
DUCED’’ and inserting ‘‘REDUCED’’;
(II) in the first sentence of
subclause (I)—
(aa) by striking ‘‘under sub-
section (e)’’; and
(bb) by striking ‘‘without re-
gard to the requirement imposed
under clause (ii)’’; and
(III) in subclause (II)—
(aa) in the subclause head-
ing, by striking ‘‘1997’’ and insert-
ing ‘‘2002’’;
(bb) by striking ‘‘1997’’ and
inserting ‘‘2002’’;
(cc) by striking ‘‘clause (iii)
without regard’’ and all that fol-
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lows through ‘‘(aa) the’’ and in-
serting ‘‘clause (ii) if the’’;
(dd) by striking ‘‘be pre-
vented from planting the crop or’’;
(ee) by striking ‘‘8 percent’’
the first place it appears and in-
serting ‘‘15 percent’’; and
(ff) by striking ‘‘uses; or’’
and all that follows through the
period at the end of the subclause
and inserting ‘‘uses.’’;
(viii) in clause (v) (as so redesignated),
by striking ‘‘permitted cotton’’ and all that
follows through ‘‘this subparagraph’’ and
inserting ‘‘cotton payment acres of the farm
was devoted to conserving uses or alter-
native crops described in subparagraph
(E)’’; and
(ix) in clause (vi) (as so redesignated),
by striking ‘‘(vi)’’ and inserting ‘‘(v)’’; and
(E) in the first sentence of subparagraph
(E)(ii), by inserting before the period at the end
the following: ‘‘or other oilseeds as determined by
the Secretary’’;
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(5) by striking subsection (e) and inserting the
following:
‘‘(e) HAYING AND GRAZING.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), haying and grazing of acreage under sub-
section (c)(1)(C) shall be permitted, except during
any consecutive 5-month period that is established by
the State committee established under section 8(b) of
the Soil Conservation and Domestic Allotment Act
(16 U.S.C. 590h(b)) for a State. The 5-month period
shall be established during the period beginning April
1, and ending October 31, of a year.
‘‘(2) NATURAL DISASTERS.—In the case of a nat-
ural disaster, the Secretary may permit unlimited
haying and grazing on the acreage. The Secretary
may not exclude irrigated or irrigable acreage not
planted to alfalfa when exercising the authority under
this paragraph.’’;
(6) in subsection (f)—
(A) in paragraph (1), by striking ‘‘1995’’
and inserting ‘‘2002’’; and
(B) in paragraph (4)(C), by striking ‘‘re-
duced by’’ and all that follows through ‘‘sub-
section (e)’’; and
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(7) in subsection (o), by striking ‘‘1997’’ and in-
serting ‘‘2002’’.
SEC. 1104. FEED GRAIN PROGRAM.
Section 304 of the Agricultural Act of 1949 (as redesig-
nated by section 1101(b)(1)(B)) is amended—
(1) by striking the section heading and inserting
the following:
‘‘SEC. 304. LOANS AND PAYMENTS FOR THE 1991 THROUGH
2002 CROPS OF FEED GRAINS.’’;
(2) in subsection (a)—
(A) in paragraph (1), by striking ‘‘1995’’
and inserting ‘‘2002’’;
(B) in paragraph (4)—
(i) in subparagraph (A)—
(I) by striking ‘‘may’’ and insert-
ing ‘‘shall’’;
(II) in clause (i), by inserting
‘‘or’’ after the semicolon; and
(III) in clause (iii), by striking
‘‘(iii) the’’ and inserting the following:
‘‘(III) the’’; and
(ii) in subparagraph (C), by striking
‘‘1995’’ and inserting ‘‘2002’’; and
(C) in paragraph (6), by striking ‘‘1995’’
and inserting ‘‘2002’’;
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(3) in subsection (b)(1), by striking ‘‘1995’’ and
inserting ‘‘2002’’;
(4) in subsection (c)(1)—
(A) in subparagraph (A), by striking
‘‘1995’’ and inserting ‘‘2002’’;
(B) in subparagraph (B)—
(i) in clause (ii)—
(I) in the clause heading, by strik-
ing 
‘‘AND
1995’’ 
and 
inserting
‘‘THROUGH 2002’’; and
(II) by striking ‘‘and 1995’’ and
inserting ‘‘through 2002’’;
(ii) by redesignating clause (iii) as
clause (iv);
(iii) by inserting after clause (ii) the
following:
‘‘(iii) MAXIMUM PAYMENT RATE.—The
payment rates under this subsection shall
not exceed (per bushel)—
‘‘(I) in the case of corn, $.53 for
the 1996 crop, $.53 for the 1997 crop,
$.57 for the 1998 crop, $.56 for the
1999 crop, $.53 for the 2000 crop, $.54
for the 2001 crop, and $.55 for the
2002 crop;
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‘‘(II) in the case of grain sor-
ghums, $.59 for the 1996 crop, $.59 for
the 1997 crop, $.63 for the 1998 crop,
$.61 for the 1999 crop, $.59 for the
2000 crop, $.60 for the 2001 crop, and
$.61 for the 2002 crop;
‘‘(III) in the case of oats, $.12 for
the 1996 crop, $.11 for the 1997 crop,
$.12 for the 1998 crop, $.11 for the
1999 crop, $.09 for the 2000 crop, $.09
for the 2001 crop, and $.10 for the
2002 crop; and
‘‘(IV) in the case of barley, $.45
for the 1996 crop, $.43 for the 1997
crop, $.44 for the 1998 crop, $.42 for
the 1999 crop, $.39 for the 2000 crop,
$.39 for the 2001 crop, and $.40 for the
2002 crop.’’; and
(iv) in clause (iv) (as so redesignated),
by striking ‘‘1995’’ each place it appears
and inserting ‘‘2002’’;
(C) in subparagraph (C)—
(i) in clause (i)—
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(I) by inserting after ‘‘crop’’ the
following: ‘‘or to a commodity per-
mitted under section 504(b)’’; and
(II) by striking ‘‘within the per-
mitted acreage’’; and
(ii) in clause (ii)—
(I) by striking ‘‘85 percent’’ and
inserting ‘‘70 percent’’; and
(II) by striking ‘‘less the quan-
tity’’ and all that follows through
‘‘(e)(2)(D))’’;
(D) in subparagraph (D)(i), by striking
‘‘Notwithstanding the foregoing provisions of this
section, if’’ and inserting ‘‘If’’; and
(E) in subparagraph (E)—
(i) in clause (i)—
(I) by striking ‘‘an acreage’’ and
all that follows through ‘‘grains and’’;
(II) by striking ‘‘1997 crops (ex-
cept as provided in clause (vii))’’ each
place it appears and inserting ‘‘2002
crops’’;
(III) by striking ‘‘(except as pro-
vided in subparagraph (F))’’ each
place it appears and inserting ‘‘or al-
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ternative crops described in subpara-
graph (F)’’; and
(IV) in subclause (I), by striking
‘‘for the purpose’’ and all that follows
through ‘‘(e)(2)(D)’’;
(ii) in clause (ii), by striking ‘‘(or
other uses as provided in subparagraph
(F))’’ and inserting ‘‘or alternative crops
described in subparagraph (F)’’;
(iii) in clause (iv), by striking ‘‘per-
mitted feed grain’’ and all that follows
through ‘‘this subparagraph’’ and inserting
‘‘feed grain payment acres of the farm was
devoted to conserving uses or alternative
crops described in subparagraph (F)’’;
(iv) by striking clause (vi);
(v) by redesignating clause (vii) as
clause (vi); and
(vi) in clause (vi) (as so redesig-
nated)—
(I) in the clause heading, by strik-
ing ‘‘EXCEPTIONS TO 0/85’’ and insert-
ing ‘‘REDUCED YIELDS’’;
(II) by striking ‘‘an acreage’’ and
all that follows through ‘‘crop and’’;
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(III) by striking subclause (II);
(IV) in subclause (I)(aa)—
(aa) by striking ‘‘(aa)’’; and
(bb) by striking ‘‘be pre-
vented from planting the crop or’’;
and
(V) in subclause (I)(bb)—
(aa) by striking ‘‘(bb)’’ and
inserting ‘‘(II)’’;
(bb) by striking ‘‘8 percent’’
and inserting ‘‘15 percent’’; and
(cc) by striking ‘‘; or’’ and
inserting a period;
(5) by striking subsection (e) and inserting the
following:
‘‘(e) HAYING AND GRAZING.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), haying and grazing of acreage under sub-
section (c)(1)(C) shall be permitted, except during
any consecutive 5-month period that is established by
the State committee established under section 8(b) of
the Soil Conservation and Domestic Allotment Act
(16 U.S.C. 590h(b)) for a State. The 5-month period
shall be established during the period beginning April
1, and ending October 31, of a year.
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‘‘(2) NATURAL DISASTERS.—In the case of a nat-
ural disaster, the Secretary may permit unlimited
haying and grazing on the acreage. The Secretary
may not exclude irrigated or irrigable acreage not
planted to alfalfa when exercising the authority under
this paragraph.’’;
(6) in subsection (f)—
(A) in paragraph (1), by striking ‘‘1995’’
and inserting ‘‘2002’’; and
(B) in paragraph (4)(C), by striking ‘‘re-
duced by’’ and all that follows through ‘‘sub-
section (e)’’;
(7) in subsection (g)(1), by striking ‘‘under sub-
section (e)’’;
(8) in subsection (o)(1), by striking ‘‘and acreage
reduction’’;
(9) in subsection (p)(1), by striking ‘‘1995’’ and
inserting ‘‘2002’’;
(10) in subsection (q)(1)—
(A) by striking ‘‘1995’’ and inserting
‘‘2002’’;
(B) in subparagraph (C), by inserting
‘‘and’’ after the semicolon at the end;
(C) in subparagraph (D), by striking ‘‘;
and’’ and inserting a period; and
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(D) by striking subparagraph (E); and
(11) in subsection (r), by striking ‘‘1995’’ and
inserting ‘‘2002’’.
SEC. 1105. WHEAT PROGRAM.
Section 305 of the Agricultural Act of 1949 (as redesig-
nated by section 1101(b)(1)(B)) is amended—
(1) by striking the section heading and inserting
the following:
‘‘SEC. 305. LOANS AND PAYMENTS FOR THE 1991 THROUGH
2002 CROPS OF WHEAT.’’;
(2) in subsection (a)—
(A) in paragraph (1), by striking ‘‘1995’’
and inserting ‘‘2002’’; and
(B) in paragraph (4)—
(i) in subparagraph (A)—
(I) by striking ‘‘may’’ and insert-
ing ‘‘shall’’;
(II) in clause (i), by inserting
‘‘or’’ after the semicolon; and
(III) in clause (iii), by striking
‘‘(iii) the’’ and inserting the following:
‘‘(III) the’’; and
(ii) in subparagraph (C), by striking
‘‘1995’’ and inserting ‘‘2002’’;
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(3) in subsection (b)(1), by striking ‘‘1995’’ and
inserting ‘‘2002’’;
(4) in subsection (c)(1)—
(A) in subparagraph (A), by striking
‘‘1995’’ and inserting ‘‘2002’’;
(B) in subparagraph (B)—
(i) in clause (ii)—
(I) in the clause heading, by strik-
ing 
‘‘AND
1995’’ 
and 
inserting
‘‘THROUGH 2002’’; and
(II) by striking ‘‘and 1995’’ and
inserting ‘‘through 2002’’;
(ii) by redesignating clause (iii) as
clause (iv);
(iii) by inserting after clause (ii) the
following:
‘‘(iii) MAXIMUM PAYMENT RATE.—The
payment rate for wheat under this sub-
section shall not exceed (per bushel) $.89 for
the 1996 crop, $.94 for the 1997 crop, $.95
for the 1998 crop, $.89 for the 1999 crop,
$.79 for the 2000 crop, $.78 for the 2001
crop, and $.71 for the 2002 crop.’’; and
(iv) in clause (iv) (as so redesignated),
by striking ‘‘1995’’ and inserting ‘‘2002’’;
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(C) in subparagraph (C)—
(i) in clause (i)—
(I) by inserting after ‘‘crop’’ the
following: ‘‘or to a commodity per-
mitted under section 504(b)’’; and
(II) by striking ‘‘within the per-
mitted acreage’’; and
(ii) in clause (ii)—
(I) by striking ‘‘85 percent’’ and
inserting ‘‘70 percent’’; and
(II) by striking ‘‘less the quan-
tity’’ and all that follows through
‘‘(e)(2)(D))’’;
(D) in subparagraph (D)(i), by striking
‘‘Notwithstanding the foregoing provisions of this
section, if’’ and inserting ‘‘If’’; and
(E) in subparagraph (E)—
(i) in clause (i)—
(I) by striking ‘‘an acreage’’ and
all that follows through ‘‘wheat and’’;
(II) by striking ‘‘1997 crops (ex-
cept as provided in clause (vii))’’ each
place it appears and inserting ‘‘2002
crops’’;
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(III) by striking ‘‘(except as pro-
vided in subparagraph (F))’’ each
place it appears and inserting ‘‘or al-
ternative crops described in subpara-
graph (F)’’; and
(IV) in subclause (I), by striking
‘‘for the purpose’’ and all that follows
through ‘‘(e)(2)(D)’’;
(ii) in clause (ii), by striking ‘‘(or
other uses as provided in subparagraph
(F))’’ and inserting ‘‘or alternative crops
described in subparagraph (F)’’;
(iii) in clause (iv), by striking ‘‘per-
mitted wheat’’ and all that follows through
‘‘this subparagraph’’ and inserting ‘‘wheat
grain payment acres of the farm was de-
voted to conserving uses or alternative crops
described in subparagraph (F)’’;
(iv) by striking clause (vi);
(v) by redesignating clause (vii) as
clause (vi); and
(vi) in clause (vi) (as so redesig-
nated)—
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(I) in the clause heading, by strik-
ing ‘‘EXCEPTIONS TO 0/85’’ and insert-
ing ‘‘REDUCED YIELDS’’;
(II) by striking ‘‘an acreage’’ and
all that follows through ‘‘crop and’’;
(III) by striking subclause (II);
(IV) in subclause (I)(aa)—
(aa) by striking ‘‘(aa)’’; and
(bb) by striking ‘‘be pre-
vented from planting the crop or’’;
and
(V) in subclause (I)(bb)—
(aa) by striking ‘‘(bb)’’ and
inserting ‘‘(II)’’;
(bb) by striking ‘‘8 percent’’
and inserting ‘‘15 percent’’; and
(cc) by striking ‘‘; or’’ and
inserting a period;
(5) by striking subsection (e) and inserting the
following:
‘‘(e) HAYING AND GRAZING.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), haying and grazing of acreage under sub-
section (c)(1)(C) shall be permitted, except during
any consecutive 5-month period that is established by
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the State committee established under section 8(b) of
the Soil Conservation and Domestic Allotment Act
(16 U.S.C. 590h(b)) for a State. The 5-month period
shall be established during the period beginning April
1, and ending October 31, of a year.
‘‘(2) NATURAL DISASTERS.—In the case of a nat-
ural disaster, the Secretary may permit unlimited
haying and grazing on the acreage. The Secretary
may not exclude irrigated or irrigable acreage not
planted to alfalfa when exercising the authority under
this paragraph.’’;
(6) in subsection (f)—
(A) in paragraph (1), by striking ‘‘1995’’
and inserting ‘‘2002’’; and
(B) in paragraph (4)(C), by striking ‘‘re-
duced by’’ and all that follows through ‘‘sub-
section (e)’’;
(7) in subsection (g)(1), by striking ‘‘under sub-
section (e)’’;
(8) in subsection (o)(1), by striking ‘‘and acreage
reduction’’;
(9) in subsection (p)(2)(B), by striking ‘‘less the
quantity’’ and all that follows through ‘‘(e)(2)(D))’’;
and
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(10) in subsection (q), by striking ‘‘1995’’ and
inserting ‘‘2002’’.
SEC. 1106. MILK PROGRAM.
(a) IN GENERAL.—Section 204 of the Agricultural Act
of 1949 (7 U.S.C. 1446e) is amended to read as follows:
‘‘SEC. 204. MILK PRICE SUPPORT PROGRAM FOR CALENDAR
YEARS 1996 THROUGH 2002.
‘‘(a) IN GENERAL.—During the period beginning Jan-
uary 1, 1996, and ending December 31, 2002, the price of
milk produced in the 48 contiguous States shall be sup-
ported as provided in this section.
‘‘(b) SUPPORT PRICE.—
‘‘(1) IN GENERAL.—During the period referred to
in subsection (a), the price of milk used for cheese
shall be supported at a rate equal to $10.00 per hun-
dredweight for calendar year 1996, subject to sub-
section (d). Milk used for nonfat dry milk or butter
shall not be supported under this section.
‘‘(2) ANNUAL REDUCTION.—For each of calendar
years 1997 through 2002, the Secretary shall reduce
the rate of price support for milk used for cheese by
10 cents per hundredweight.
‘‘(c) PURCHASES.—
‘‘(1) IN GENERAL.—The price of milk used for
cheese shall be supported through the purchase of
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cheese and based on the support price in effect during
the applicable calendar year.
‘‘(2) SALES THROUGH DEIP.—All sales for export
under the dairy export incentive program established
under section 153 of the Food Security Act of 1985
(15 U.S.C. 713a–14) shall be considered as total pur-
chases under subsection (d).
‘‘(d) SUPPORT RATE ADJUSTMENTS.—Effective Janu-
ary 1 of each of the calendar years 1996 through 2002, if
the level of purchases of milk and the products of milk by
the Commodity Credit Corporation under this section (less
sales under section 407 for unrestricted use), through direct
purchases or through sales under the dairy export incentive
program established under section 153 of the Food Security
Act of 1985 (15 U.S.C. 713a–14), as estimated by the Sec-
retary by November 20 of the preceding calendar year, will
exceed 1,500,000,000 pounds (milk equivalent, total milk
solids basis), the Secretary shall decrease by 25 cents per
hundredweight, in addition to the annual reduction under
subsection (b)(2), the rate of price support for milk used
for cheese in effect for the calendar year. The support rate
adjustment provided under this subsection shall be effective
only for the calendar year applicable to the estimate of the
Secretary. After the support rate adjustment terminates, the
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support price shall be the level provided under subsection
(b)(2).
‘‘(e) COMMODITY CREDIT CORPORATION.—The Sec-
retary shall carry out the program authorized by this sec-
tion through the Commodity Credit Corporation.
‘‘(f) PERIOD.—This section shall be effective only dur-
ing the period beginning January 1, 1996, and ending De-
cember 31, 2002.’’.
(b) MILK
MANUFACTURING
MARKETING
ADJUST-
MENT.—Section 102 of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 1446e–1) is repealed.
(c) CLASS IV ACCOUNT.—Effective January 1, 1996,
section 8c(5) of the Agricultural Adjustment Act (7 U.S.C.
608c(5)), reenacted with amendments by the Agricultural
Marketing Agreement Act of 1937, is amended—
(1) in paragraph (A), by adding at the end the
following: ‘‘Each marketing order issued pursuant to
this section for milk and milk products shall include
all skim milk and butterfat used to produce butter,
nonfat dry milk, and dry whole milk as part of a
Class IV classification.’’; and
(2) by adding at the end the following:
‘‘(M) CLASS IV ACCOUNT.—
‘‘(i) DEFINITIONS.—In this paragraph:
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‘‘(I) ACCOUNT.—The term ‘Ac-
count’ means the Account for Class IV
final products established under clause
(ii).
‘‘(II) ADMINISTRATOR.—The term
‘Administrator’ means the Adminis-
trator of the Account appointed under
clause (vii).
‘‘(III) CLASS
IV
FINAL
PROD-
UCT.—The term ‘Class IV final prod-
uct’ means butter, nonfat dry milk,
and dry whole milk.
‘‘(IV) MILK MARKETING ORDER.—
The term ‘milk marketing order’ means
a milk marketing order issued pursu-
ant to this section and any comparable
State milk marketing order or system.
‘‘(ii) ESTABLISHMENT OF ACCOUNT.—
Notwithstanding any other provision of law,
the Secretary shall establish an Account for
Class IV final products to equalize returns
from all milk used in the 48 contiguous
States to produce Class IV final products
among all milk marketed by producers for
commercial use.
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‘‘(iii) CLASS IV PRICE AND DIFFEREN-
TIAL; PRORATION.—
‘‘(I) PRICE.—The Secretary shall
determine a milk equivalent value per
hundredweight for Class IV final prod-
ucts each month based on the average
wholesale market prices during the
month for Class IV final products. The
milk equivalent value at 3.67 percent
milkfat shall be the per hundredweight
Class IV price under the Account.
‘‘(II) DIFFERENTIAL.—The Ad-
ministrator of the Account shall an-
nounce, on the first business day of
each month, the per hundredweight
Class IV differential applicable to the
preceding month. The monthly Class
IV differential shall be the amount, if
any, by which the support rate for
milk in effect under section 204 of the
Agricultural Act of 1949 (7 U.S.C.
1446e) exceeds the Class IV price estab-
lished pursuant to subclause (I).
‘‘(III) PRORATION.—On or before
the twentieth day after the end of each
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month, the Administrator of the Ac-
count shall—
‘‘(aa) determine the quantity
of milk produced in the 48 contig-
uous States of the United States
and marketed for commercial use
in producing Class IV final prod-
ucts during the preceding month;
‘‘(bb) calculate the quantity
equal 
to 
the 
number 
of
hundredweights of milk used for
Class IV final products during the
preceding month (as determined
under item (aa)) multiplied by
the Class IV differential for the
month established under subclause
(II), and add to that amount the
cost of administering the Account
during the current month; and
‘‘(cc) prorate the amount es-
tablished under item (bb) among
the 
total 
amount, 
in
hundredweights, of milk produced
in the 48 contiguous States and
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marketed for commercial use dur-
ing the preceding month.
‘‘(iv) ACCOUNT OBLIGATIONS.—On or
before the twenty-fifth day after the end of
each month:
‘‘(I) Each person making pay-
ment to a producer for milk produced
in any of the 48 contiguous States of
the United States and marketed for
commercial use shall collect from each
producer the amount determined by
multiplying the quantity of milk han-
dled for the account of the producer
during the preceding month by the
Class IV differential proration estab-
lished 
pursuant 
to 
clause
(iii)(III)(ccc). The amount shall be re-
mitted to the Administrator of the Ac-
count.
‘‘(II) Any producer marketing
milk of the producer’s own production
in the form of milk or dairy products
to consumers, either directly or through
retail or wholesale outlets, shall remit
to the Administrator of the Account the
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amount determined by multiplying the
quantity of the milk marketed by the
producer by the Class IV differential
proration 
established 
under 
clause
(iii)(III)(ccc).
‘‘(v) DISTRIBUTION OF ACCOUNT PRO-
CEEDS.—On or before the thirtieth day after
the end of each month, the Administrator of
the Account shall pay to each person that
used skim milk and butterfat to produce
Class IV final products during the preced-
ing month a proportionate share of the total
Account proceeds for the month. The propor-
tion of the total proceeds payable to each
person shall be the same proportion that the
skim milk and butterfat used by the person
to produce Class IV final products during
the preceding month is of the total skim
milk and butterfat used by all persons dur-
ing the preceding month to produce Class
IV final products.
‘‘(vi) EFFECT
ON
BLEND
PRICES.—
Producer blend prices under a milk market-
ing order shall be adjusted to account for
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revenue distributions required under clauses
(iv) and (v).
‘‘(vii) ADMINISTRATION
OF
CLASS
IV
ACCOUNT.—The Secretary shall appoint a
person to serve as the Administrator of the
Account and shall delegate to the Adminis-
trator such powers as are needed to carry
out the duties of Administrator.
‘‘(viii) ENFORCEMENT.—
‘‘(I) COLLECTION.—The amounts
specified in clause (iv) shall be col-
lected and remitted to the Adminis-
trator in the manner prescribed by the
Secretary.
‘‘(II) PENALTIES.—If any person
fails to remit the amounts required
under clause (iv) or fails to comply
with such requirements for record-
keeping or otherwise as are required by
the Secretary to carry out this sub-
paragraph, the person shall be liable to
the Secretary for a civil penalty up to,
as determined by the Secretary, an
amount determined by multiplying—
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‘‘(i) the quantity of milk in-
volved in the violation; by
‘‘(ii) the support rate for
milk in effect under section 204 of
the Agricultural Act of 1949 (7
U.S.C. 1446e) for the applicable
calendar year.
‘‘(III) ENFORCEMENT.—The Sec-
retary may enforce this clause in the
courts of the United States.
‘‘(ix) REGULATIONS.—The Secretary
shall issue regulations to establish the Ac-
count without regard to the notice and com-
ment requirements of section 553 of title 5,
United States Code.’’.
(d) NORTHEAST INTERSTATE DAIRY COMPACT.—Con-
gress consents to the Northeast Interstate Dairy Compact
entered into among the States of Vermont, New Hampshire,
Maine, Connecticut, Rhode Island, and Massachusetts, sub-
ject to the following conditions:
(1) COMPENSATION OF CCC.—Before the end of
each fiscal year that a Compact price regulation is in
effect, the Compact Commission shall compensate the
Commodity Credit Corporation for the cost of any
purchases of milk and milk products by the Corpora-
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tion that result from projected fluid milk production
for the fiscal year within the Compact region in ex-
cess of the national average rate of purchases of milk
and milk products by the Corporation.
(2) MILK MARKET ORDER ADMINISTRATOR.—By
agreement among the States and the Secretary of Ag-
riculture, the Administrator shall provide technical
assistance to the compact Commission, and be reim-
bursed for the assistance, with respect to the applica-
ble milk marketing order issued under section 8c(5) of
the Agricultural Adjustment Act (7 U.S.C. 608c(5)),
reenacted with amendments by the Agricultural Mar-
keting Agreement Act of 1937.
(3) TERMINATION AND RENEWAL.—The consent
for the Compact shall—
(A) terminate on the date that is 7 years
after the date of enactment of this Act, subject to
subparagraph (B); and
(B) may be renewed by Congress, without
prior ratification by the States’ legislatures.
(e) AGRICULTURAL COMPETITIVENESS GRANTS.—The
Secretary of Agriculture (referred to in this subtitle as the
‘‘Secretary’’) shall, in accordance with this subtitle, award
a grant to a grantee eligible under section 1502 to promote
a purpose of this subtitle.
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(f) ELIGIBLE GRANTEE.—The Secretary may make a
grant under section 1501 to—
(1) a college or university;
(2) a State agricultural experiment station;
(3) a State Cooperative Extension Service;
(4) a research institution or organization;
(5) a private organization or person; or
(6) a Federal agency.
(g) USE OF GRANT.—A grant made under section 1501
may be used by a grantee for 1 or more of the following
uses:
(1) Research, ranging from discovery to prin-
ciples of application.
(2) Extension and related private-sector activi-
ties.
(3) Education.
(h) PRIORITY.—In administering this subtitle, the Sec-
retary shall—
(1) establish priorities for allocating grants,
based on needs and opportunities of the food and ag-
riculture system in the United States;
(2) seek and accept proposals for grants;
(3) determine the relevance and merit of propos-
als through a system of peer review; and
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(4) award grants on the basis of merit and qual-
ity.
(i) ADMINISTRATION.—
(1) COMPETITIVE GRANT.—A grant under section
1501 shall be awarded on a competitive basis.
(2) TERM.—A grant under section 1501 shall
have a term that does not exceed 5 years.
(3) MATCHING FUNDS.—As a condition of receipt
of a grant under section 1501, the Secretary shall re-
quire the funding of the grant with equal matching
funds from a non-Federal source if the grant is—
(A) for applied research that is commodity-
specific; and
(B) not of national scope.
(4) ADMINISTRATIVE
COSTS.—The Secretary
may use not more than 4 percent of the funds made
available under section 1506 for administrative costs
incurred by the Secretary in carrying out this sub-
title.
(5) CONSTRUCTION COSTS.—None of the funds
made available under section 1507 may be used for
the construction of a new building or the acquisition,
expansion, remodeling, or alteration of an existing
building (including site grading and improvement
and architect fees).
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(j) REGULATIONS.—The Secretary shall issue such reg-
ulations as are necessary to carry out this subtitle.
(k) USE
OF
COMMODITY
CREDIT
CORPORATION
FUNDS.—
(1) IN GENERAL.—Subject to subsection (b), the
Secretary shall use $30,000,000 of the funds of the
Commodity Credit Corporation for each of fiscal
years 1996 through 2002 to carry out this title.
(2) LIMITATION.—The Secretary may use less
than $30,000,000 of the funds of the Commodity
Credit Corporation for any fiscal year if the Sec-
retary determines that the full funding level is not
necessary to fund all qualifying applications for agri-
cultural competitiveness grants that satisfy the prior-
ity criteria established under section 1504.
(3) POWERS OF THE CORPORATION.—Section 5
of the Commodity Credit Corporation Charter Act (15
U.S.C. 714c) (as amended by section 1201(c)(1)) is
amended by inserting after subsection (g) the follow-
ing:
‘‘(h) Carry out research, extension, and education re-
lated to agriculture by using not more than $30,000,000
of the funds of the Corporation in any fiscal year for any
function or activity relating to agricultural research, exten-
sion, or education.’’.
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(l) EFFECTIVE DATE.—This subtitle and the amend-
ment made by this subtitle shall become effective upon en-
actment.
SEC. 1107. OILSEEDS PROGRAM.
Section 205 of the Agricultural Act of 1949 (7 U.S.C.
1446f) is amended—
(1) in the section heading, by striking ‘‘1995’’
and inserting ‘‘2002’’;
(2) in subsections (b), (c), (e)(1), and (n), by
striking ‘‘1995’’ each place it appears and inserting
‘‘2002’’; and
(3) in subsections (c) and (h)(2), by striking
‘‘1997’’ each places it appears and inserting ‘‘2002’’.
SEC. 1108. SUGAR PROGRAM.
(a) IN GENERAL.—Section 206 of the Agricultural Act
of 1949 (7 U.S.C. 1446g) is amended—
(1) in the section heading, by striking ‘‘1997’’
and inserting ‘‘2002’’;
(2) in subsection (a), by striking ‘‘1997’’ and in-
serting ‘‘2002’’;
(3) in subsection (b), by striking ‘‘nonrecourse’’;
(4) in subsection (c)—
(A) by striking ‘‘1997’’ and inserting
‘‘2002’’; and
(B) by striking ‘‘nonrecourse’’;
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(5) by redesignating subsections (d) through (j)
as subsections (f) through (l), respectively;
(6) by inserting after subsection (c) the follow-
ing:
‘‘(d) LOANS.—
‘‘(1) IN GENERAL.—Subject to paragraph (2), the
Secretary shall carry out this section through the use
of recourse loans.
‘‘(2) 
IMPORT
TRIGGER
FOR
NONRECOURSE
LOANS.—If in any fiscal year the tariff rate quota for
imports of sugar into the United States is established
at a level equal to 1,340,000 or more short tons, raw
value, the Secretary shall for the duration of the fiscal
year make available nonrecourse loans under this sec-
tion. A recourse loan made during the fiscal year
prior to the tariff rate quota being established at
1,340,000 or more short tons, raw value, under this
section shall be modified by the Secretary into a
nonrecourse loan for the remainder of the term of the
loan.
‘‘(3) PROCESSOR
ASSURANCES.—The Secretary
shall obtain from each processor that obtains either a
recourse or nonrecourse loan under this section such
assurances as the Secretary considers necessary to en-
sure that producers of sugarcane and sugar beets will
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receive payments that are proportional to the value of
the loan received by the processor, as determined by
the Secretary.
‘‘(e) FORFEITURES.—A penalty shall be assessed on the
forfeiture of any sugar pledged as collateral for a
nonrecourse loan. The penalty for cane sugar shall be equiv-
alent to 1 cent per pound. The penalty for beet sugar shall
bear the same relation to the penalty for cane sugar as the
marketing assessment for sugar beets bears to the marketing
assessment for sugarcane.’’;
(7) in subsection (f)(1) (as so redesignated), by
striking ‘‘1997’’ and inserting ‘‘2002’’;
(8) in subsection (h) (as so redesignated), by
striking ‘‘subsection (g)’’ and inserting ‘‘subsection
(i)’’;
(9) in subsection (i) (as so redesignated)—
(A) in the subsection heading, by striking
‘‘NONRECOURSE’’; and
(B) by striking ‘‘price support’’ each place
it appears;
(10) in subsection (k) (as so redesignated)—
(A) in the subsection heading, by striking
‘‘MARKETING ASSESSMENT’’ and inserting ‘‘AS-
SESSMENTS ON ALL MARKETED SUGAR’’;
(B) in paragraph (1)—
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(i) by striking ‘‘1996’’ and inserting
‘‘2002’’;
(ii) in subparagraph (A)—
(I) by striking ‘‘each of fiscal
years 1992 through 1994, 1.0’’ and in-
serting ‘‘fiscal year 1996, 1.1’’; and
(II) by striking ‘‘(but’’ and all
that follows through ‘‘sugar),’’; and
(iii) in subparagraph (B)—
(I) by striking ‘‘1995 through
1998, 
1.1’’ 
and 
inserting 
‘‘1997
through 2003, 1.375’’; and
(II) by striking ‘‘(but’’ and all
that follows through ‘‘sugar),’’; and
(C) in paragraph (2)—
(i) by striking ‘‘1996’’ and inserting
‘‘2002’’;
(ii) in subparagraph (A)—
(I) by striking ‘‘each of fiscal
years 1992 through 1994, 1.0722’’ and
inserting ‘‘fiscal year 1996, 1.1794’’;
and
(II) by striking ‘‘(but’’ and all
that follows through ‘‘sugar),’’; and
(iii) in subparagraph (B)—
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(I) by striking ‘‘1995 through
1998, 1.1794’’ and inserting ‘‘1997
through 2003, 1.47425’’; and
(II) by striking ‘‘(but’’ and all
that follows through ‘‘sugar),’’; and
(D) by striking paragraph (6); and
(11) in subsection (l) (as so redesignated), by
striking ‘‘1997’’ and inserting ‘‘2002’’.
(b) LOAN PROVISIONS.—Section 401(e)(1) of the Agri-
cultural Act of 1949 (7 U.S.C. 1421(e)(1)) is amended by
adding at the end the following: ‘‘In the case of price sup-
port for sugarcane or sugar beets, the payment owed pro-
ducers by a processor shall be reduced in proportion to the
loan forfeiture penalty amounts incurred by the processor
as provided in section 206(e).’’.
(c) MARKETING ALLOTMENTS.—Part VII of subtitle B
of title III of the Agricultural Adjustment Act of 1938 (7
U.S.C. 1359aa et seq.) is repealed.
SEC. 1109. ACREAGE BASE AND YIELD SYSTEM.
Title V of the Agricultural Act of 1949 (7 U.S.C. 1461
et seq.) is amended—
(1) in section 503 (7 U.S.C. 1463)—
(A) in subsection (a)—
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(i) in paragraph (2), by adding ‘‘and
historical soybean acreage’’ after ‘‘crop acre-
age bases’’; and
(ii) by adding at the end the following:
‘‘(4) HISTORICAL SOYBEAN ACREAGE.—
‘‘(A) IN
GENERAL.—The Secretary shall
provide for the establishment and maintenance of
an historical soybean acreage for each farm.
‘‘(B) QUANTITY.—
‘‘(i) IN GENERAL.—Except as provided
in clause (ii), the historical soybean acreage
for a farm for a crop year shall be equal to
the average of the acreage planted to soy-
beans for harvest on the farm in each of the
previous 5 crop years.
‘‘(ii) EXCEPTION.—In determining the
historical soybean acreage for a farm for a
crop year, the Secretary shall exclude from
the acreage any soybean plantings that were
considered planted to a program crop or are
planted for harvest on a crop acreage
base.’’;
(B) in subsection (b)—
(i) by striking ‘‘CALCULATION.—’’ and
all that follows through ‘‘paragraph (2),
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the’’ in paragraph (1) and inserting ‘‘CAL-
CULATION.—The’’; and
(ii) by striking paragraph (2);
(C) in subsection (c)—
(i) in paragraph (1), by inserting ‘‘in
the case of each of the 1991 through 1995
crops,’’ after ‘‘(1)’’;
(ii) in paragraph (3), by striking
‘‘1997’’ and inserting ‘‘1995’’;
(iii) in paragraph (4)—
(I) by inserting ‘‘in the case of the
1991 through 1995 crops, and base
acreage in the case of the 1996 through
2002 crops,’’ after ‘‘permitted acreage’’;
and
(II) by inserting ‘‘or conservation
uses or related commodity production
permitted by the Secretary’’ after ‘‘sec-
tion 504’’; and
(iv) in paragraph (6), by inserting ‘‘in
the case of each of the 1991 through 1995
crops,’’ after ‘‘(6)’’; and
(D) by striking subsection (h);
(2) in section 504 (7 U.S.C. 1464)—
(A) in subsection (b)—
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(i) in paragraph (1)—
(I) in the paragraph heading, by
striking ‘‘PERMITTED CROPS’’ and in-
serting ‘‘PAYMENT ACRES’’;
(II) by striking ‘‘for purposes of
this section,’’;
(III) by striking ‘‘a crop acreage
base’’ and inserting ‘‘the payment
acres of a crop acreage base’’;
(IV) in subparagraph (D), by
striking ‘‘and’’ at the end;
(V) in subparagraph (E), by
striking the period at the end and in-
serting ‘‘; and’’; and
(VI) by adding at the end the fol-
lowing:
‘‘(F) peas and lentils.’’; and
(ii) by adding at the end the following:
‘‘(4) CROP ACREAGE BASE NOT ELIGIBLE FOR
PAYMENT.—Any crop or conserving crop that is
planted on the acres of a crop acreage base that are
not eligible for payments shall be eligible for loans.
Haying and grazing on the acres shall not be re-
stricted.’’;
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(B) by striking subsection (c) and inserting
the following:
‘‘(c) LIMITATIONS ON ACREAGE AND PAYMENTS.—
‘‘(1) IN GENERAL.—Except as otherwise provided
in this section, the planting of a program crop may
exceed 100 percent of the crop acreage base of the pro-
gram crop. The program crop shall be eligible for
loans.
‘‘(2) UPLAND COTTON AND RICE.—In the case of
upland cotton and rice, any crop other than upland
cotton or rice that is planted on an upland cotton or
rice crop acreage base shall not be eligible for pay-
ments.
‘‘(3) WHEAT AND FEED GRAINS.—In the case of
wheat and feed grains, except as provided in para-
graph (4), any crop planted on a wheat or feed grain
crop acreage base shall be eligible for payments that
are attributable to the payment acres of the wheat or
feed grain crop acreage base.
‘‘(4) EXCEPTIONS.—
‘‘(A) PAYMENTS ON MULTIPLE CROP ACRE-
AGE BASES.—Producers on a farm with wheat or
feed grain crop acreage base and upland cotton
or rice crop acreage base may not receive pay-
ments with respect to the rice or upland cotton
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planted on the wheat or feed grain crop acreage
base.
‘‘(B) UPLAND
COTTON
OR
RICE
PAY-
MENTS.—Upland cotton or rice shall not be eligi-
ble for payments if planted in excess of the re-
spective crop acreage base, except that—
‘‘(i) upland cotton or rice planted on
acreage not eligible for payments under sub-
section (b)(4) shall not affect the eligibility
for payments under this subparagraph, but
shall be eligible for loans; and
‘‘(ii) acreage described in subsection
(e)(1) shall be eligible for loans, but not for
payments.’’;
(C) by striking subsection (d);
(D) by redesignating subsection (e) as sub-
section (d);
(E) in subsection (d)(2) (as so redesig-
nated)—
(i) by striking ‘‘the producers—’’ and
all that follows through ‘‘(A) plant’’ and in-
serting ‘‘the producers plant’’;
(ii) by striking ‘‘25 percent’’ and in-
serting ‘‘100 percent’’; and
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(iii) by striking ‘‘crop; and’’ all that
follows through the period at the end and
inserting ‘‘crop.’’; and
(F) by adding at the end the following:
‘‘(e) TWO-WAY FLEXIBILITY.—Producers of a crop of
upland cotton or rice on a farm who are participating in
the annual program for upland cotton or rice may plant
the crop without losing eligibility for loans with respect to
the crop if the acreage planted to the crop on the farm does
not exceed the sum of—
‘‘(1) 25 percent of the historical soybean acreage
on the farm; and
‘‘(2) 100 percent of the crop acreage base.’’;
(3) in section 505 (7 U.S.C. 1465)—
(A) in subsection (a), by striking ‘‘or (c)’’;
(B) in subsection (b)—
(i) in paragraph (1)—
(I) by striking ‘‘paragraphs (2)
and (3)’’ and inserting ‘‘paragraph
(2)’’; and
(II) by striking ‘‘1997’’ and in-
serting ‘‘2002’’;
(ii) in paragraph (2), by striking
‘‘1997’’ and inserting ‘‘2002’’; and
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(iii) by striking paragraphs (3), (4),
and (5); and
(C) by striking subsections (c), (d), and (e);
and
(4) in section 509 (7 U.S.C. 1469), by striking
‘‘1997’’ and inserting ‘‘2002’’.
SEC. 1110. EXTENSION OF RELATED PRICE SUPPORT PROVI-
SIONS.
Title X of the Food Security Act of 1985 (Public Law
99–198; 99 Stat. 1444) is amended—
(1) in section 1001 (7 U.S.C. 1308), by striking
‘‘1997’’ each place it appears in paragraphs (1)(A),
(1)(B), and (2)(A) and inserting ‘‘2002’’; and
(2) in section 1001C(a) (7 U.S.C. 1308–3(a)), by
striking ‘‘1997’’ each place it appears and inserting
‘‘2002’’.
SEC. 1111. REPEAL OF MISCELLANEOUS AUTHORITIES.
(a) AGRICULTURAL ADJUSTMENT ACT OF 1938.—Title
III of the Agricultural Adjustment Act of 1938 is amend-
ed—
(1) in subtitle B—
(A) by striking parts II through V (7
U.S.C. 1326 et seq.); and
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(B) in part VI, by striking sections 358,
358a, and 358d (7 U.S.C. 1358, 1358a, and
1359); and
(2) by striking subtitle D (7 U.S.C. 1379a et
seq.).
(b) TREE ASSISTANCE PROGRAM.—The Secretary of
Agriculture shall terminate the tree assistance program es-
tablished under part 1478 of title 7, Code of Federal Regula-
tions.
SEC. 1112. COMMODITY CREDIT CORPORATION INTEREST
RATE.
Notwithstanding any other provision of law, the
monthly Commodity Credit Corporation interest rate appli-
cable to loans provided for agricultural commodities by the
Corporation shall be 100 basis points greater than the rate
determined under the applicable interest rate formula in
effect on October 1, 1995.
SEC. 1113. PEANUT PROGRAM.
(a) PRICE SUPPORT.—Section 108B of the Agricul-
tural Act of 1949 (7 U.S.C. 1445c–3) is amended—
(1) in the section heading, by striking ‘‘1997’’
and inserting ‘‘2000’’;
(2) in subsection (a)—
(A) in paragraph (1), by striking ‘‘1997’’
and inserting ‘‘2000’’; and
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(B) by striking paragraph (2) and inserting
the following:
‘‘(2) SUPPORT
RATE.—The national average
quota support rate for each of the 1996 through 2000
crops of quota peanuts shall be $628 per ton.’’;
(3) in subsection (b)(1), by striking ‘‘1997’’ and
inserting ‘‘2000’’;
(4) in the first sentence of subsection (c)(2)(A),
by inserting before the period at the end the following:
‘‘and that, in the case of the 1996 and subsequent
crops, Valencia peanuts not produced in the State
shall not be eligible to participate in the pools of the
State’’;
(5) in subsection (g)—
(A) in paragraphs (1) and (2)(A)(ii)(II), by
striking ‘‘1997 crops’’ each place it appears and
inserting ‘‘2000 crops’’; and
(B) by striking ‘‘the 1997 crop’’ each place
it appears and inserting ‘‘each of the 1997
through 2000 crops’’; and
(6) in subsection (h), by striking ‘‘1997’’ and in-
serting ‘‘2000’’.
(b) POUNDAGE QUOTAS.—Section 358–1 of the Agri-
cultural Adjustment Act of 1938 (7 U.S.C. 1358–1) is
amended—
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(1) in the section heading, by striking ‘‘1997’’
and inserting ‘‘2000’’;
(2) in subsection (a)—
(A) by redesignating paragraphs (2) and
(3) as paragraphs (3) and (4), respectively;
(B) by striking paragraph (1) and inserting
the following:
‘‘(1) ESTABLISHMENT.—The Secretary shall es-
tablish the national poundage quota for peanuts for
each of the 1991 through 2000 marketing years.
‘‘(2) LEVEL.—The Secretary shall establish the
national poundage quota at a level that is equal to
the quantity of peanuts (in tons) that the Secretary
estimates will be devoted in each marketing year to
domestic edible and related uses, excluding seed, plus
a reasonable quantity of peanuts for carryover to en-
sure continuity of supply between marketing years.
Undermarketings of quota peanuts from the previous
year shall not be considered. In establishing the quota,
the Secretary shall take into account—
‘‘(A) any stocks of peanuts on hand in the
inventory of the Commodity Credit Corporation;
and
‘‘(B) peanuts or products of peanuts im-
ported into the United States;’’; and
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(C) in paragraph (4) (as so redesignated),
by striking ‘‘established under paragraph (1)’’;
(3) in subsection (b)—
(A) by striking ‘‘1997’’ each place it ap-
pears and inserting ‘‘2000’’;
(B) in paragraph (2), by striking subpara-
graph (B) and inserting the following:
‘‘(B) TEMPORARY QUOTA ALLOCATION.—
‘‘(i) IN
GENERAL.—Subject to clause
(iv), temporary allocation of a poundage
quota for the marketing year in which a
crop of peanuts is planted shall be made to
producers for each of the 1991 through 2000
marketing years in accordance with this
subparagraph.
‘‘(ii) QUANTITY.—The temporary quota
allocation shall be equal to the quantity of
seed peanuts (in pounds) planted on a
farm, as determined in accordance with reg-
ulations issued by the Secretary.
‘‘(iii) ALLOCATION.—The allocation of
quota pounds to producers under this sub-
paragraph shall be performed in such a
manner as will not result in a net decrease
in quota pounds on a farm in excess of 3
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percent, after the temporary seed quota is
added, from the basic farm quota for the
1995 marketing year. A decrease shall occur
only once, and shall be applicable only to
the 1996 marketing year.
‘‘(iv) NO INCREASED COSTS.—The Sec-
retary may carry out this subparagraph
only if this subparagraph does not result
in—
‘‘(I) an increased cost to the Com-
modity Credit Corporation through
displacement of quota peanuts by addi-
tional peanuts in the domestic market;
‘‘(II) an increased loss in a loan
pool of an area marketing association
designated 
pursuant 
to 
section
108B(c)(1) of the Agricultural Act of
1949 (7 U.S.C. 1445c–3(c)(1)); or
‘‘(III) other increased costs.
‘‘(v) USE OF QUOTA AND ADDITIONAL
PEANUTS.—Nothing in this
subparagraph
affects the requirements of section 358b(b).
‘‘(vi) ADDITIONAL
ALLOCATION.—The
temporary allocation of quota pounds under
this subparagraph shall be in addition to
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the farm poundage quota established under
this subsection and shall be credited to the
producers of the peanuts on the farm in ac-
cordance with regulations issued by the Sec-
retary.’’; and
(C) by striking paragraphs (8) and (9); and
(4) in subsection (f), by striking ‘‘1997’’ and in-
serting ‘‘2000’’.
(c) SALE, LEASE, OR TRANSFER.—Section 358b of the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1358b) is
amended to read as follows:
‘‘SEC. 358b. SALE, LEASE, OR TRANSFER OF FARM POUND-
AGE QUOTA FOR 1991 THROUGH 2000 CROPS
OF PEANUTS.
‘‘(a) IN GENERAL.—
‘‘(1) AUTHORITY.—
‘‘(A) IN GENERAL.—Subject to such terms,
conditions, or limitations as the Secretary may
prescribe, the owner, or operator with the per-
mission of the owner, of any farm for which a
farm poundage quota has been established under
this Act may sell or lease all or any part of the
poundage quota to any other owner or operator
of a farm within counties of a State for transfer
to the farm, except that any such lease of pound-
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age quota may be entered into in the fall or after
the normal planting season—
‘‘(i) if not less than 90 percent of the
basic quota (consisting of the farm quota
and temporary quota transfers), plus any
poundage quota transferred to the farm
under this subsection, has been planted or
considered planted on the farm from which
the quota is to be leased; and
‘‘(ii) under such terms and conditions
as the Secretary may prescribe by regula-
tion.
‘‘(B) FALL TRANSFERS.—
‘‘(i) NO TRANSFER AUTHORIZATION.—
In the case of a fall transfer or a transfer
after the normal planting season by a cash
lessee, the landowner shall not be required
to sign the transfer authorization.
‘‘(ii) TIME LIMITATION.—A fall trans-
fer or a transfer after the normal planting
season may be made not later than 72 hours
after the peanuts that are the subject of the
transfer are inspected and graded.
‘‘(iii) LESSEES.—In the case of a fall
transfer, poundage quota from a farm may
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be leased to an owner or operator of another
farm within the same county or to an
owner or operator of another farm in any
other county within the State.
‘‘(iv) EFFECT
OF
TRANSFER.—A fall
transfer of poundage quota shall not affect
the farm quota history for the transferring
or receiving farm and shall not result in the
reduction of the farm poundage quota on
the transferring farm.
‘‘(2) 
TRANSFERS
TO
OTHER
SELF-OWNED
FARMS.—The owner or operator of a farm may trans-
fer all or any part of the farm poundage quota for
the farm to any other farm owned or controlled by the
owner or operator that is in the same State and that
had a farm poundage quota for the crop of the preced-
ing year, if both the transferring and receiving farms
were under the control of the owner or operator for
at least 3 crop years prior to the crop year in which
the farm poundage quota is to be transferred. Any
farm poundage quota transferred under this para-
graph shall not result in any reduction in the farm
poundage quota for the transferring farm if sufficient
acreage is planted on the receiving farm to produce
the quota pounds transferred.
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‘‘(3) TRANSFERS
IN
STATES
WITH
SMALL
QUOTAS.—In the case of any State for which the
poundage quota allocated to the State was less than
10,000 tons for the crop of the preceding year, all or
any part of a farm poundage quota may be trans-
ferred by sale or lease or otherwise from a farm in
1 county to a farm in another county in the State.
‘‘(4) TRANSFERS
BY
SALE
IN
STATES
HAVING
QUOTAS OF 10,000 TONS OR MORE.—
‘‘(A) IN
GENERAL.—Subject to the other
provisions of this paragraph and such terms and
conditions as the Secretary may prescribe, the
owner, or operator with the permission of the
owner, of any farm for which a farm quota has
been established under this Act in a State for
which the poundage quota allocated to the State
was 10,000 tons or more may sell poundage
quota to any other eligible owner or operator of
a farm within the State.
‘‘(B) LIMITATIONS BASED ON TOTAL POUND-
AGE QUOTA.—
‘‘(i) 
1996 
MARKETING
YEAR.—Not
more than 15 percent of the total poundage
quota within a county as of January 1,
1996, may be sold and transferred under
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this paragraph during the 1996 marketing
year.
‘‘(ii) 1997–2000 MARKETING YEARS.—
‘‘(I) IN GENERAL.—Except as pro-
vided in subclause (II), not more than
5 percent of the quota pounds remain-
ing in a county as of January 1, 1997,
and each January 1 thereafter through
January 1, 2000, may be sold and
transferred under this paragraph dur-
ing the applicable marketing year.
‘‘(II) CARRYOVER.—Any eligible
quota that is not sold or transferred
under clause (i) shall be eligible for
sale or transfer under subclause (I).
‘‘(C) COUNTY LIMITATION.—Not more than
35 percent of the total poundage quota within a
county may be sold and transferred under this
paragraph.
‘‘(D) SUBSEQUENT
LEASES
OR
SALES.—
Quota pounds sold and transferred to a farm
under this paragraph may not be leased or sold
by the farm to another owner or operator of a
farm within the same State for a period of 5
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committee determines that the transfer complies with
this section.
‘‘(4) OTHER TERMS.—The Secretary may estab-
lish by regulation other terms and conditions.
‘‘(c) CROPS.—This section shall be effective only for
the 1991 through 2000 crops of peanuts.’’.
(d) EXPERIMENTAL AND RESEARCH PROGRAMS FOR
PEANUTS.—Section 358c(d) of the Agricultural Adjustment
Act of 1938 (7 U.S.C. 1358c(d)) is amended by striking
‘‘1995’’ and inserting ‘‘2000’’.
(e) MARKETING PENALTIES AND DISPOSITION OF AD-
DITIONAL PEANUTS.—Section 358e of the Agricultural Ad-
justment Act of 1938 (7 U.S.C. 1359a) is amended—
(1) in the section heading, by striking ‘‘1997’’
and inserting ‘‘2000’’; and
(2) in subsection (i), by striking ‘‘1997’’ and in-
serting ‘‘2000’’.
SEC. 1114. CATASTROPHIC CROP INSURANCE COVERAGE.
(a) IN GENERAL.—Section 427 of the Agricultural Act
of 1949 (7 U.S.C. 1433f) is amended by striking ‘‘subse-
quent’’ and inserting ‘‘1996’’.
(b) CONFORMING AMENDMENTS.—Section 508(b) of the
Federal Crop Insurance Act (7 U.S.C. 1508(b)) is amend-
ed—
(1) by striking paragraph (6); and
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(2) by redesignating paragraphs (7) through (10)
as paragraphs (6) through (9), respectively.
(c) CROPS.—The amendments made by subsection (b)
shall apply beginning with the 1997 crop of an insurable
commodity.
SEC. 1115. SAVINGS ADJUSTMENT.
(a) PAYMENT RATES.—If the Director estimates that
total direct spending savings described in subsection (a)(1)
are less than $13,400,000,000, the Secretary of Agriculture
shall reduce the maximum payment rates for deficiency
payments for rice, upland cotton, feed grains, and wheat
provided in sections 302, 303, 304, and 305 of the Agricul-
tural Act of 1949 (as amended by this subtitle) by an equal
percentage for each of the 1996 through 2002 crops of the
commodity, to acheive total direct spending savings de-
scribed in subsection (a)(1) of $13,400,000,000.
(b) MAXIMUM REDUCTION.—The maximum deficiency
payment rate reduction under subsection (a) shall not ex-
ceed 2 percent.
SEC. 1116. SENSE OF THE SENATE REGARDING TAX PROVI-
SIONS RELATING TO ETHANOL.
(a) IN GENERAL.—The Senate finds that—
(1) ethanol and its derivative ethyl tertiary butyl
ether (ETBE) are used as fuels or additives to fuels
for motor vehicles;
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(2) ethanol and ETBE have been shown to im-
prove air quality when used as fuels or fuel additives;
(3) ethanol and ETBE are primarily made from
renewable resources and produced domestically;
(4) studies, including a study very recently re-
leased by the Department of Agriculture, have shown
that when used as fuel, ethanol and ETBE yield more
energy than is required to produce them;
(5) the use of domestically produced ethanol and
ETBE can thus reduce our nation’s reliance on en-
ergy imports and improve our energy security;
(6) the use of ethanol and ETBE adds signifi-
cantly to market opportunities for corn, which con-
stitutes about 95 percent of the feedstock for ethanol
production, thereby improving corn prices and farm
income;
(7) the production of ethanol and ETBE contrib-
utes substantially to improved economic and job
growth, particularly in rural communities;
(8) ethanol and ETBE currently qualify for tax
incentives which facilitate and promote the use of
these clean-burning, renewable, and domestically-pro-
duced fuels; and
(9) a recently-released report from the General
Accounting Office confirmed the results of numerous
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previous reports demonstrating that the ethanol tax
incentives result in net savings to the Federal Govern-
ment as farm program costs are reduced through im-
proved grain prices.
(b) SENSE OF THE SENATE.—It is the sense of the Sen-
ate that any legislation enacted by Congress should not
eliminate or in any way weaken or diminish incentives
under Federal tax laws or regulations that facilitate or pro-
mote the production, blending, or use of ethanol and ETBE.
SEC. 1117. EFFECTIVE DATE.
(a) EFFECTIVE DATE.—
(1) IN GENERAL.—Except as provided in this
subsection and as otherwise specifically provided in
this subtitle, this subtitle and the amendments made
by this subtitle shall apply beginning with the earlier
of—
(A) the 1996 crop of an agricultural com-
modity; or
(B) November 1, 1995.
(2) MILK.—This subtitle and the amendments
made by this subtitle shall apply to milk and dairy
products beginning on January 1, 1996.
(b) PRIOR CROPS.—
(1) IN GENERAL.—Except as otherwise specifi-
cally provided and notwithstanding any other provi-
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sion of law, this subtitle and the amendments made
by this subtitle shall not affect the authority of the
Secretary of Agriculture to carry out a price support
or production adjustment program for any of the
1991 through 1995 crops of an agricultural commod-
ity established under a provision of law in effect im-
mediately before the applicable effective date specified
in subsection (a).
(2) LIABILITY.—A provision of this subtitle or
an amendment made by this subtitle shall not affect
the liability of any person under any provision of law
as in effect before the application of the provision in
accordance with subsection (a).
Subtitle B—Conservation
SEC. 1201. CONSERVATION.
(a) FUNDING.—Subtitle E of title XII of the Food Se-
curity Act of 1985 (16 U.S.C. 3841 et seq.) is amended to
read as follows:
‘‘Subtitle E—Funding
‘‘SEC. 1241. FUNDING.
‘‘(a) MANDATORY EXPENSES.—For each of fiscal years
1996 through 2002, the Secretary shall use the funds of the
Commodity Credit Corporation to carry out the programs
authorized by—
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‘‘(1) subchapter B of chapter 1 of subtitle D (in-
cluding contracts extended by the Secretary pursuant
to section 1437 of the Food, Agriculture, Conserva-
tion, and Trade Act of 1990 (Public Law 101–624; 16
U.S.C. 3831 note));
‘‘(2) subchapter C of chapter 1 of subtitle D; and
‘‘(3) chapter 2 of subtitle D for practices related
to livestock production.
‘‘(b) ENVIRONMENTAL
QUALITY
INCENTIVES
PRO-
GRAM.—For each of fiscal years 1996 through 2002,
$100,000,000 of the funds of the Commodity Credit Cor-
poration shall be available for providing technical assist-
ance, cost-sharing payments, and incentive payments for
practices relating to livestock production under the environ-
mental quality incentives program.
‘‘(c) WETLANDS RESERVE PROGRAM.—Spending to
carry out the wetlands reserve program under subchapter
C of chapter 1 of subtitle D shall be not greater than
$614,000,000 for fiscal years 1996 through 2002.
‘‘(d) CONSERVATION RESERVE PROGRAM.—Spending
for the conservation reserve program (including contracts
extended by the Secretary pursuant to section 1437 of the
Food, Agriculture, Conservation, and Trade Act of 1990
(Public Law 101–624; 16 U.S.C. 3831 note)) shall be not
greater than—
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‘‘(1) $1,787,000,000 for fiscal year 1996;
‘‘(2) $1,784,000,000 for fiscal year 1997;
‘‘(3) $1,445,000,000 for fiscal year 1998;
‘‘(4) $1,246,000,000 for fiscal year 1999;
‘‘(5) $1,101,000,000 for fiscal year 2000;
‘‘(6) $999,000,000 for fiscal year 2001; and
‘‘(7) $974,000,000 for fiscal year 2002.’’.
(b) ENVIRONMENTAL
QUALITY
INCENTIVES
PRO-
GRAM.—To carry out the programs funded under the
amendment made by subsection (a), subtitle D of title XII
of the Food Security Act of 1985 (16 U.S.C. 3830 et seq.)
is amended by striking chapter 2 (16 U.S.C. 3838 et seq.)
and inserting the following:
‘‘CHAPTER 2—ENVIRONMENTAL QUALITY
INCENTIVES PROGRAM
‘‘SEC. 1238. DEFINITIONS.
‘‘In this chapter:
‘‘(1) LAND MANAGEMENT PRACTICE.—The term
‘land management practice’ means a site-specific nu-
trient or manure management, integrated pest man-
agement, irrigation management, tillage or residue
management, grazing management, or other land
management practice that the Secretary determines is
needed to protect soil, water, or related resources in
the most cost effective manner.
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‘‘(2) LARGE CONFINED LIVESTOCK OPERATION.—
The term ‘large confined livestock operation’ means a
farm or ranch that—
‘‘(A) is a confined animal feeding oper-
ation; and
‘‘(B) has more than—
‘‘(i) 700 mature dairy cattle;
‘‘(ii) 1,000 beef cattle;
‘‘(iii) 30,000 laying hens or broilers (if
the facility has continuous overflow water-
ing);
‘‘(iv) 100,000 laying hens or broilers
(if the facility has a liquid manure system);
‘‘(v) 55,000 turkeys;
‘‘(vi) 2,500 swine; or
‘‘(vii) 10,000 sheep or lambs.
‘‘(3) LIVESTOCK.—The term ‘livestock’ means
mature dairy cows, beef cattle, laying hens, broilers,
turkeys, swine, sheep, or lambs.
‘‘(4) OPERATOR.—The term ‘operator’ means a
person who is engaged in crop or livestock production
(as defined by the Secretary).
‘‘(5) STRUCTURAL PRACTICE.—The term ‘struc-
tural practice’ means the establishment of an animal
waste management facility, terrace, grassed water-
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way, contour grass strip, filterstrip, permanent wild-
life habitat, or other structural practice that the Sec-
retary determines is needed to protect soil, water, or
related resources in the most cost effective manner.
‘‘SEC. 1238A. ESTABLISHMENT AND ADMINISTRATION OF
ENVIRONMENTAL QUALITY INCENTIVES PRO-
GRAM.
‘‘(a) ESTABLISHMENT.—
‘‘(1) IN
GENERAL.—During the 1996 through
2002 fiscal years, the Secretary shall provide tech-
nical assistance, cost-sharing payments, and incentive
payments to operators who enter into contracts with
the Secretary, through an environmental quality in-
centives program that replaces the functions of the ag-
ricultural conservation program, the Great Plains
conservation program, the water quality incentives
program, and the Colorado River Basin salinity con-
trol program.
‘‘(2) ELIGIBLE PRACTICES.—
‘‘(A) STRUCTURAL PRACTICES.—An opera-
tor who implements a structural practice shall be
eligible for technical assistance or cost-sharing
payments, or both.
‘‘(B) LAND MANAGEMENT PRACTICES.—An
operator who performs a land management prac-
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tice shall be eligible for technical assistance or
incentive payments, or both.
‘‘(3) ELIGIBLE LANDS.—Land on which struc-
tural and land management practices may be per-
formed under this chapter includes agricultural land
(including cropland, rangeland, pasture, and other
land on which crops or livestock are produced) that
the Secretary determines poses a serious threat to soil,
water, or related resources by reason of the soil types,
terrain, climatic, soil, topographic, flood, or saline
characteristics, or other factors or natural hazards.
‘‘(4) PRIORITIES.—The Secretary shall provide
technical assistance, cost-sharing payments, and in-
centive payments to operators in a region, watershed,
or conservation priority area in which an agricul-
tural operation is located, as determined by the Sec-
retary, based on national and regional priorities that
include—
‘‘(A) the significance of the soil, water, and
related natural resource problems;
‘‘(B) structural or land management prac-
tices for which State or local governments have
provided, or will provide, financial or technical
assistance to the operators;
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‘‘(C) structural practices or land manage-
ment practices on lands on which agricultural
production has been determined to contribute to,
or create, the potential for failure to meet appli-
cable water quality standards or other environ-
mental objectives of a Federal or State law; and
‘‘(D) maximization of environmental bene-
fits per dollar expended.
‘‘(b) APPLICATION AND TERM.—
‘‘(1) IN GENERAL.—A contract between an oper-
ator and the Secretary under this chapter may—
‘‘(A) apply to 1 or more structural practices
or 1 or more land management practices, or
both; and
‘‘(B) have a term of not less than 5, nor
more than 10, years, as determined appropriate
by the Secretary, depending on the practice or
practices that are the basis of the contract.
‘‘(2) DUTIES OF OPERATORS AND SECRETARY.—
To receive cost sharing or incentive payments, or
technical assistance, participating operators shall
comply with all terms and conditions of the contract
and a plan, as established by the Secretary.
‘‘(c) STRUCTURAL PRACTICES.—
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‘‘(1) COMPETITIVE OFFER.—The Secretary shall
administer a competitive offer system for operators
proposing to receive cost-sharing payments in ex-
change for the implementation of 1 or more structural
practices by the operator. The competitive offer system
shall consist of—
‘‘(A) the submission of a competitive offer
by the operator in such manner as the Secretary
may prescribe; and
‘‘(B) evaluation of the offer in light of the
priorities established by subsection (a)(4) and
the projected cost of the proposal, as determined
by the Secretary.
‘‘(2) CONCURRENCE OF OWNER.—If the operator
making an offer to implement a structural practice is
a tenant of the land involved in agricultural produc-
tion, for the offer to be acceptable, the operator shall
obtain the concurrence of the owner of the land with
respect to the offer.
‘‘(d) LAND MANAGEMENT PRACTICES.—The Secretary
shall establish an application and evaluation process for
awarding technical assistance or incentive payments, or
both, to an operator in exchange for the performance of 1
or more land management practices by the operator.
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‘‘(e) COST-SHARING, INCENTIVE
PAYMENTS, 
AND
TECHNICAL ASSISTANCE.—
‘‘(1) COST-SHARING PAYMENTS.—
‘‘(A) IN GENERAL.—The Federal share of
cost-sharing payments to an operator proposing
to implement 1 or more structural practices shall
not be greater than 75 percent of the projected
cost of each practice, as determined by the Sec-
retary, taking into consideration any payment
received by the operator from a State or local
government.
‘‘(B) LIMITATION.—An operator of a large
confined livestock operation shall not be eligible
for cost-sharing payments to construct an ani-
mal waste management facility.
‘‘(C) OTHER PAYMENTS.—An operator shall
not be eligible for cost-sharing payments for
structural practices on eligible land under this
chapter if the operator receives cost-sharing pay-
ments or other benefits for the same land under
chapter 1 or 3.
‘‘(2) INCENTIVE PAYMENTS.—The Secretary shall
make incentive payments in an amount and at a rate
determined by the Secretary to be necessary to encour-
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age an operator to perform 1 or more land manage-
ment practices.
‘‘(3) TECHNICAL ASSISTANCE.—
‘‘(A) FUNDING.—The Secretary shall allo-
cate funding under this chapter for the provision
of technical assistance according to the purpose
and projected cost for which the technical assist-
ance is provided for a fiscal year. The allocated
amount may vary according to the type of exper-
tise required, quantity of time involved, and
other factors as determined appropriate by the
Secretary. Funding shall not exceed the projected
cost to the Secretary of the technical assistance
provided for a fiscal year.
‘‘(B) OTHER AUTHORITIES.—The receipt of
technical assistance under this chapter shall not
affect the eligibility of the operator to receive
technical assistance under other authorities of
law available to the Secretary.
‘‘(f) LIMITATION ON PAYMENTS.—
‘‘(1) IN GENERAL.—The total amount of cost-
sharing and incentive payments paid to a person
under this chapter may not exceed—
‘‘(A) $10,000 for any fiscal year; or
‘‘(B) $50,000 for any multiyear contract.
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‘‘(2) REGULATIONS.—The Secretary shall issue
regulations that are consistent with section 1001 for
the purpose of—
‘‘(A) defining the term ‘person’ as used in
paragraph (1); and
‘‘(B) prescribing such rules as the Secretary
determines necessary to ensure a fair and rea-
sonable application of the limitations established
under this subsection.
‘‘(g) REGULATIONS.—Not later than 180 days after the
effective date of this subsection, the Secretary shall issue reg-
ulations to implement the environmental quality incentives
program established under this chapter.
‘‘SEC. 1238B. TEMPORARY ADMINISTRATION OF ENVIRON-
MENTAL QUALITY INCENTIVES PROGRAM.
‘‘(a) INTERIM ADMINISTRATION.—
‘‘(1) IN GENERAL.—During the period beginning
on the date of enactment of the Agricultural Rec-
onciliation Act of 1995 and ending on the later of the
dates specified in paragraph (2), to ensure that tech-
nical assistance, cost-sharing payments, and incentive
payments continue to be administered in an orderly
manner until such time as assistance can be provided
through final regulations issued to implement the en-
vironmental quality incentives program established
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under this chapter, the Secretary shall continue to
provide technical assistance, cost-sharing payments,
and incentive payments under the terms and condi-
tions of the agricultural conservation program, the
Great Plains conservation program, the water quality
incentives program, and the Colorado River Basin sa-
linity control program, to the extent that the terms
and conditions of the programs are consistent with
the environmental quality incentives program.
‘‘(2) EXPIRATION OF AUTHORITY.—The author-
ity of the Secretary to carry out paragraph (1) shall
terminate on the later of—
‘‘(A) the date that is 180 days after the date
of enactment of the Agricultural Reconciliation
Act of 1995; or
‘‘(B) March 31, 1996.
‘‘(b) PERMANENT ADMINISTRATION.—Effective begin-
ning on the later of the dates specified in subsection (a)(2),
the Secretary shall provide technical assistance, cost-shar-
ing payments, and incentive payments for structural prac-
tices and land management practices related to crop and
livestock production in accordance with final regulations
issued to carry out the environmental quality incentives
program.’’.
(c) CONFORMING AMENDMENTS.—
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(1) COMMODITY CREDIT CORPORATION CHARTER
ACT.—Section 5(g) of the Commodity Credit Corpora-
tion Charter Act (15 U.S.C. 714c(g)) is amended to
read as follows:
‘‘(g) Carry out conservation functions and programs.’’.
(2) WETLANDS RESERVE PROGRAM.—
(A) IN GENERAL.—Section 1237 of the Food
Security Act of 1985 (16 U.S.C. 3837) is amend-
ed—
(i) in subsection (b)(2)—
(I) by striking ‘‘not less’’ and in-
serting ‘‘not more’’; and
(II) by striking ‘‘2000’’ and in-
serting ‘‘2002’’; and
(ii) in subsection (c), by striking
‘‘2000’’ and inserting ‘‘2002’’.
(B) 
LENGTH
OF
EASEMENT.—Section
1237A(e) of the Food Security Act of 1985 (16
U.S.C. 3837a(e)) is amended by striking para-
graph (2) and inserting the following:
‘‘(2) shall be for 20 or 30 years, but in no case
shall be a permanent easement.’’.
(3) CONSERVATION RESERVE PROGRAM.—
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(A) IN GENERAL.—Section 1231 of the Food
Security Act of 1985 (16 U.S.C. 3831) is amend-
ed—
(i) in subsections (a) and (b)(3), by
striking ‘‘1995’’ each place it appears and
inserting ‘‘2002’’; and
(ii) in subsection (d), by striking
‘‘total of’’ and all that follows through the
period at the end of the subsection and in-
serting ‘‘total of 36,400,000 acres during the
1986 through 2002 calendar years (includ-
ing contracts extended by the Secretary pur-
suant to section 1437 of the Food, Agri-
culture, Conservation, and Trade Act of
1990 (Public Law 101–624; 16 U.S.C. 3831
note), except that in no case may total
spending for the conservation reserve exceed
the 
spending 
limitations 
in 
section
1241(d).’’.
(B) 
CONFORMING
AMENDMENT.—Section
1232(c) of the Food Security Act of 1985 (16
U.S.C. 3832(c)) is amended by striking ‘‘1995’’
and inserting ‘‘2002’’.
(d) EFFECTIVE DATES.—
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(1) IN GENERAL.—Except as provided in para-
graph (2), this section and the amendments made by
this section shall become effective on the later of—
(A) the date of enactment of this Act; or
(B) November 1, 1995.
(2) TRANSITION PROVISIONS.—
(A) IN
GENERAL.—Section 1238B of the
Food Security Act of 1985 (as added by sub-
section (b)) shall become effective on the date of
enactment of this Act.
(B) 
1991 
THROUGH
1995
CALENDAR
YEARS.—Notwithstanding any other provision of
law, this section and the amendments made by
this section shall not affect the authority of the
Secretary of Agriculture to carry out a program
for any of the 1991 through 1995 calendar years
under a provision of law in effect immediately
before the effective dates specified in this sub-
section.
Subtitle C—Agricultural Promotion
and Export Programs
SEC. 1301. MARKET PROMOTION PROGRAM.
Effective October 1, 1995, section 211(c)(1) of the Agri-
cultural Trade Act of 1978 (7 U.S.C. 5641(c)(1)) is amend-
ed—
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(1) by striking ‘‘and’’ after ‘‘1991 through
1993,’’; and
(2) by striking ‘‘through 1997,’’ and inserting
‘‘through 1995, and not more than $75,000,000 for
each of fiscal years 1996 through 2002,’’.
SEC. 1302. EXPORT ENHANCEMENT PROGRAM.
Effective October 1, 1995, section 301(e)(1) of the Agri-
cultural Trade Act of 1978 (7 U.S.C. 5651(e)(1)) is amend-
ed to read as follows:
‘‘(1) IN GENERAL.—The Commodity Credit Cor-
poration shall make available to carry out the pro-
gram established under this section not more than—
‘‘(A) $767,200,000 for fiscal year 1996;
‘‘(B) $705,600,000 for fiscal year 1997;
‘‘(C) $624,800,000 for fiscal year 1998;
‘‘(D) $544,000,000 for fiscal year 1999;
‘‘(E) $463,200,000 for fiscal year 2000;
‘‘(F) $382,400,000 for fiscal year 2001; and
‘‘(G) $382,400,000 for fiscal year 2002.’’.
SEC. 1303. EXPORT OF SUNFLOWERSEED OIL AND COTTON-
SEED OIL.
(a) IN GENERAL.—Effective September 30, 1995, sec-
tion 301 of the Disaster Assistance Act of 1988 (Public Law
100–387; 7 U.S.C. 1464 note) is repealed.
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(b) FUNDING.—Notwithstanding any other provision
of law, the Secretary of Agriculture shall not spend any
funds made available under section 32 of the Act entitled
‘‘An Act to amend the Agricultural Adjustment Act, and
for other purposes’’, approved August 24, 1935 (7 U.S.C.
612c), to carry out the programs established under section
301(b) of the Disaster Assistance Act of 1988 (Public Law
100–387; 7 U.S.C. 1464 note) (as in effect prior to the
amendment made by subsection (a)).
Subtitle D—Nutrition Assistance
CHAPTER 1—FOOD STAMP PROGRAM
SEC. 1401. TREATMENT OF CHILDREN LIVING AT HOME.
The second sentence of section 3(i) of the Food Stamp
Act of 1977 (7 U.S.C. 2012(i)) is amended by striking
‘‘(who are not themselves parents living with their children
or married and living with their spouses)’’.
SEC. 1402. OPTIONAL ADDITIONAL CRITERIA FOR SEPA-
RATE HOUSEHOLD DETERMINATIONS.
Section 3(i) of the Food Stamp Act of 1977 (7 U.S.C.
2012(i)) is amended by inserting after the third sentence
the following: ‘‘Notwithstanding the preceding sentences, a
State may establish criteria that prescribe when individuals
who live together, and who would be allowed to participate
as separate households under the preceding sentences, shall
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be considered a single household, without regard to the com-
mon purchase of food and preparation of meals.’’.
SEC. 1403. ADJUSTMENT OF THRIFTY FOOD PLAN.
The second sentence of section 3(o) of the Food Stamp
Act of 1977 (7 U.S.C. 2012(o)) is amended—
(1) by striking ‘‘and (11)’’ and inserting ‘‘(11)’’;
(2) by inserting ‘‘through October 1, 1994’’ after
‘‘1990, and each October 1 thereafter’’; and
(3) by inserting before the period at the end the
following: ‘‘, and (12) on October 1, 1995, and each
October 1 thereafter, adjust the cost of the diet to re-
flect the cost of the diet, in the preceding June, and
round the result to the nearest lower dollar increment
for each household size, except that on October 1,
1995, the Secretary may not reduce the cost of the
diet in effect on September 30, 1995’’.
SEC. 1404. DEFINITION OF HOMELESS INDIVIDUAL.
Section 3(s)(2)(C) of the Food Stamp Act of 1977 (7
U.S.C. 2012(s)(2)(C)) is amended by inserting ‘‘for not
more than 90 days’’ after ‘‘temporary accommodation’’.
SEC. 1405. STATE OPTIONS IN REGULATIONS.
Section 5(b) of the Food Stamp Act of 1977 (7 U.S.C.
2014(b)) is amended—
(1) by striking ‘‘(b) The Secretary’’ and insert-
ing the following:
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‘‘(b) UNIFORM STANDARDS.—Except as otherwise pro-
vided in this Act, the Secretary’’; and
(2) by striking ‘‘No plan’’ and inserting ‘‘Except
as otherwise provided in this Act, no plan’’.
SEC. 1406. ENERGY ASSISTANCE.
(a) IN GENERAL.—Section 5(d) of the Food Stamp Act
of 1977 (7 U.S.C. 2014(d)) is amended—
(1) by striking paragraph (11); and
(2) by redesignating paragraphs (12) through
(15) as paragraphs (11) through (14), respectively.
(b) CONFORMING AMENDMENTS.—
(1) Section 5(k) of the Act (7 U.S.C. 2014(k)) is
amended—
(A) in paragraph (1)—
(i) in subparagraph (A), by striking
‘‘plan for aid to families with dependent
children approved’’ and inserting ‘‘program
funded’’; and
(ii) in subparagraph (B), by striking
‘‘, not including energy or utility-cost as-
sistance,’’;
(B) in paragraph (2)—
(i) by striking subparagraph (C); and
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(ii) by redesignating subparagraphs
(D) through (H) as subparagraphs (C)
through (G), respectively; and
(C) by adding at the end the following:
‘‘(4) THIRD
PARTY
ENERGY
ASSISTANCE
PAY-
MENTS.—
‘‘(A) ENERGY ASSISTANCE PAYMENTS.—For
purposes of subsection (d)(1), a payment made
under a Federal or State law to provide energy
assistance to a household shall be considered
money payable directly to the household.
‘‘(B) ENERGY ASSISTANCE EXPENSES.—For
purposes of subsection (e), an expense paid on
behalf of a household under a Federal or State
law to provide energy assistance shall be consid-
ered an out-of-pocket expense incurred and paid
by the household.’’.
(2) Section 2605(f) of the Low-Income Home En-
ergy Assistance Act of 1981 (42 U.S.C. 8624(f)) is
amended—
(A) by striking ‘‘(f)(1) Notwithstanding’’
and inserting ‘‘(f) Notwithstanding’’;
(B) by striking ‘‘food stamps,’’; and
(C) by striking paragraph (2).
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SEC. 1407. DEDUCTIONS FROM INCOME.
(a) IN GENERAL.—Section 5(e) of the Food Stamp Act
of 1977 (7 U.S.C. 2014(e)) is amended—
(1) in the second sentence—
(A) by striking ‘‘and (4)’’ and inserting
‘‘(4)’’;
(B) by inserting ‘‘through October 1, 1994’’
after ‘‘October 1 thereafter’’; and
(C) by inserting before the period at the end
the following: ‘‘, and (5) on October 1, 2002, and
each October 1 thereafter, the Secretary shall ad-
just the standard deduction to the nearest lower
dollar increment to reflect changes in the
Consumer Price Index for all urban consumers
published by the Bureau of Labor Statistics, for
items other than food, for the 12-month period
ending the preceding June 30’’;
(2) in the third sentence, by striking ‘‘willfully
or fraudulently’’ and all that follows through ‘‘to re-
port’’ and inserting ‘‘has not reported’’;
(3) in the seventh sentence, by striking ‘‘may use
a standard’’ and all that follows through ‘‘except that
a’’ and inserting ‘‘may make the use of a standard
utility allowance mandatory for all households with
qualifying utility costs if the State agency has devel-
oped 1 or more standards that include the cost of
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heating and cooling and 1 or more standards that do
not include the cost of heating and cooling and the
Secretary finds that the standards will not result in
an increased cost to the Secretary. A State agency
that has not made the use of a standard utility allow-
ance mandatory under the preceding sentence shall
allow a household to switch, at the end of a certifi-
cation period, between the standard utility allowance
and a deduction based on the actual utility costs of
the household. A’’; and
(4) by striking ‘‘A State agency shall allow a
household to switch’’ and all that follows through
‘‘twelve-month period.’’.
(b) 
HOMELESS
SHELTER
DEDUCTION.—Section
11(e)(3) of the Act (7 U.S.C. 2020(e)(3)) is amended by
striking the last 3 sentences and inserting the following: ‘‘A
State agency may develop a standard homeless shelter de-
duction, which shall not exceed $139 per month, for such
expenses as may reasonably be expected to be incurred by
households in which all members are homeless individuals
but are not receiving free shelter throughout the month. A
State agency that develops the deduction may use the deduc-
tion in determining eligibility and allotments for the house-
holds, except that the State agency may prohibit the use
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of the deduction for households with extremely low shelter
costs;’’.
SEC. 1408. AMOUNT OF VEHICLE ASSET LIMITATION.
The first sentence of section 5(g)(2) of the Food Stamp
Act of 1977 (7 U.S.C. 2014(g)(2)) is amended by striking
‘‘through September 30, 1995’’ and all that follows through
‘‘such date and on’’ and inserting ‘‘and shall be adjusted
on October 1, 1996, and’’.
SEC. 1409. BENEFITS FOR ALIENS.
Section 5(i) of the Food Stamp Act of 1977 (7 U.S.C.
2014(i)) is amended—
(1) in the first sentence of paragraph (1)—
(A) by inserting ‘‘or who executed such an
affidavit or similar agreement to enable the indi-
vidual to lawfully remain in the United States,’’
after ‘‘respect to such individual,’’; and
(B) by striking ‘‘for a period’’ and all that
follows through the period at the end of the sen-
tence and inserting ‘‘until the end of the period
ending on the later of the date agreed to in the
affidavit or agreement or the date that is 5 years
after the date on which the individual was first
lawfully admitted into the United States follow-
ing the execution of the affidavit or agreement.’’;
(2) in paragraph (2)—
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(A) in the first sentence of subparagraph
(C)(i), by striking ‘‘of three years after entry
into the United States’’ and inserting ‘‘deter-
mined under paragraph (1)’’;
(B) in the first sentence of subparagraph
(D), by striking ‘‘of three years after such alien’s
entry into the United States’’ and inserting ‘‘de-
termined under paragraph (1)’’; and
(C) by adding at the end the following:
‘‘(F) LIMITATION ON MEASUREMENT OF AT-
TRIBUTED INCOME AND RESOURCES.—
‘‘(i) IN
GENERAL.—Notwithstanding
any other provision of this subsection, if a
determination described in clause (ii) is
made, the amount of income and resources
of the sponsor or the sponsor’s spouse that
shall be attributed to the sponsored individ-
ual shall not exceed the amount actually
provided to the individual, for—
‘‘(I) the 12-month period begin-
ning on the date of the determination;
or
‘‘(II) if the address of the sponsor
is unknown to the sponsored individ-
ual on the date of the determination,
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the 12-month period beginning on the
date the address becomes known to the
sponsored individual or to the Sec-
retary (who shall inform the individ-
ual of the address not later than 7
days after learning the address).
‘‘(ii) 
DETERMINATION.—The 
deter-
mination described in this clause shall be a
determination by the Secretary that a spon-
sored individual would, in the absence of
the assistance provided by this Act, be un-
able to obtain food, taking into account the
individual’s own income, plus any cash,
food, housing, or other assistance provided
by other individuals, including the spon-
sor.’’; and
(3) by adding at the end the following:
‘‘(3) TREATMENT OF NONCITIZENS.—
‘‘(A) IN
GENERAL.—Notwithstanding any
other provision of law, a noncitizen who has en-
tered into the United States on or after the date
of the enactment of this paragraph shall not,
during the 5-year period beginning on the date
of the noncitizen’s entry into the United States,
be eligible to receive any benefits under this Act.
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‘‘(B) 
EXCEPTIONS.—Subparagraph 
(A)
shall not apply to any individual who is—
‘‘(i) a noncitizen granted asylum
under section 208 of the Immigration and
Nationality Act (8 U.S.C. 1158) or whose
deportation has been withheld under section
243(h) of the Act (8 U.S.C. 1253(b)) for a
period of not more than 5 years after the
date the noncitizen arrived in the United
States;
‘‘(ii) a noncitizen admitted to the
United States as a refugee under section
207 of the Act (8 U.S.C. 1157) for not more
than 5 years after the date the noncitizen
arrived in the United States; or
‘‘(iii) a noncitizen, lawfully present in
any State (or any territory or possession of
the United States), who is—
‘‘(I) a veteran (as defined in sec-
tion 101 of title 38, United States
Code) with a discharge characterized
as an honorable discharge and not on
account of alienage; or
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‘‘(II) the spouse or unmarried de-
pendent child of a veteran described in
subclause (I).’’.
SEC. 1410. DISQUALIFICATION.
(a) IN GENERAL.—Section 6(d) of the Food Stamp Act
of 1977 (7 U.S.C. 2015(d)) is amended—
(1) by striking ‘‘(d)(1) Unless otherwise exempt-
ed by the provisions’’ and all that follows through
‘‘shall be ninety days. The’’ and inserting the follow-
ing:
‘‘(d) CONDITIONS OF PARTICIPATION.—
‘‘(1) WORK REQUIREMENTS.—
‘‘(A) IN
GENERAL.—No physically and
mentally fit individual over the age of 15 and
under the age of 60 shall be eligible to partici-
pate in the food stamp program if the individ-
ual—
‘‘(i) refuses, at the time of application
and every 12 months thereafter, to register
for employment in a manner prescribed by
the Secretary;
‘‘(ii) refuses without good cause to par-
ticipate in an employment and training
program under paragraph (4), to the extent
required by the State agency;
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‘‘(iii) refuses without good cause to ac-
cept an offer of employment, at a site or
plant not subject to a strike or lockout at
the time of the refusal, at a wage not less
than the higher of—
‘‘(I) the applicable Federal or
State minimum wage; or
‘‘(II) 80 percent of the wage that
would have governed had the minimum
hourly rate under section 6(a)(1) of the
Fair Labor Standards Act of 1938 (29
U.S.C. 206(a)(1)) been applicable to
the offer of employment;
‘‘(iv) refuses without good cause to pro-
vide a State agency with sufficient informa-
tion to allow the State agency to determine
the employment status or the job availabil-
ity of the individual;
‘‘(v) voluntarily and without good
cause—
‘‘(I) quits a job; or
‘‘(II) reduces work effort and,
after the reduction, the individual is
working less than 30 hours per week;
or
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‘‘(vi) fails to comply with section 20.
‘‘(B) HOUSEHOLD
INELIGIBILITY.—If an
individual who is the head of a household be-
comes ineligible to participate in the food stamp
program under subparagraph (A), the household
shall, at the option of the State agency, become
ineligible to participate in the food stamp pro-
gram for a period, determined by the State agen-
cy, that does not exceed the lesser of—
‘‘(i) the duration of the ineligibility of
the individual determined under subpara-
graph (C); or
‘‘(ii) 180 days.
‘‘(C) DURATION OF INELIGIBILITY.—
‘‘(i) FIRST VIOLATION.—The first time
that an individual becomes ineligible to
participate in the food stamp program
under subparagraph (A), the individual
shall remain ineligible until the later of—
‘‘(I) the date the individual be-
comes eligible under subparagraph (A);
‘‘(II) the date that is 1 month
after the date the individual became
ineligible; or
101
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‘‘(III) a date determined by the
State agency that is not later than 3
months after the date the individual
became ineligible.
‘‘(ii) SECOND VIOLATION.—The second
time that an individual becomes ineligible
to participate in the food stamp program
under subparagraph (A), the individual
shall remain ineligible until the later of—
‘‘(I) the date the individual be-
comes eligible under subparagraph (A);
‘‘(II) the date that is 3 months
after the date the individual became
ineligible; or
‘‘(III) a date determined by the
State agency that is not later than 6
months after the date the individual
became ineligible.
‘‘(iii) THIRD OR SUBSEQUENT VIOLA-
TION.—The third or subsequent time that
an individual becomes ineligible to partici-
pate in the food stamp program under sub-
paragraph (A), the individual shall remain
ineligible until the later of—
102
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‘‘(I) the date the individual be-
comes eligible under subparagraph (A);
‘‘(II) the date that is 6 months
after the date the individual became
ineligible;
‘‘(III) a date determined by the
State agency; or
‘‘(IV) at the option of the State
agency, permanently.
‘‘(D) OTHER CONDITIONS.—The’’; and
(2) in paragraph (1), by striking ‘‘Any period of
ineligibility’’ and all that follows through ‘‘violated.’’.
(b) CONFORMING AMENDMENT.—
(1) The second sentence of section 17(b)(2) of the
Act (7 U.S.C. 2026(b)(2)) is amended by striking
‘‘6(d)(1)(i)’’ and inserting ‘‘6(d)(1)(A)(i)’’.
(2) Section 20 of the Act (7 U.S.C. 2029) is
amended by striking subsection (f) and inserting the
following:
‘‘(f) DISQUALIFICATION.—An individual or a house-
hold may become ineligible under section 6(d)(1) to partici-
pate in the food stamp program for failing to comply with
this section.’’.
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SEC. 1411. EMPLOYMENT AND TRAINING.
(a) IN GENERAL.—Section 6(d)(4) of the Food Stamp
Act of 1977 (7 U.S.C. 2015(d)(4)) is amended by adding
at the end the following:
‘‘(O) LIMITATION
ON
FUNDING.—Notwith-
standing any other provision of this paragraph,
the amount of funds a State agency uses to carry
out this paragraph (including under subpara-
graph (I)) for participants who are receiving
benefits under a State program funded under
part A of title IV of the Social Security Act (42
U.S.C. 601 et seq.) shall not exceed the amount
of funds the State agency used in fiscal year
1995 to carry out this paragraph for partici-
pants who were receiving benefits in fiscal year
1995 under a State program funded under part
A of title IV of the Act (42 U.S.C. 601 et seq.).’’.
(b) FUNDING.—Section 16(h) of the Act (7 U.S.C.
2025(h)) is amended by striking ‘‘(h)(1)(A) The Secretary’’
and all that follows through the end of paragraph (1) and
inserting the following:
‘‘(h) FUNDING OF EMPLOYMENT AND TRAINING PRO-
GRAMS.—
‘‘(1) IN GENERAL.—
‘‘(A) AMOUNTS.—To carry out employment
and training programs, the Secretary shall re-
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serve for allocation to State agencies from funds
made available for each fiscal year under section
18(a)(1) the amount of—
‘‘(i) for fiscal year 1996, $77,000,000;
‘‘(ii) for fiscal year 1997, $80,000,000;
‘‘(iii) for fiscal year 1998, $83,000,000;
‘‘(iv) for fiscal year 1999, $86,000,000;
‘‘(v) for fiscal year 2000, $89,000,000;
‘‘(vi) for fiscal year 2001, $92,000,000;
and
‘‘(vii) 
for 
fiscal 
year 
2002,
$95,000,000.
‘‘(B) ALLOCATION.—The Secretary shall al-
locate the amounts reserved under subparagraph
(A) among the State agencies using a reasonable
formula (as determined by the Secretary) that
gives consideration to the population in each
State affected by section 6(n).
‘‘(C) REALLOCATION.—
‘‘(i) NOTIFICATION.—A State agency
shall promptly notify the Secretary if the
State agency determines that the State
agency will not expend all of the funds allo-
cated to the State agency under subpara-
graph (B).
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‘‘(ii) REALLOCATION.—On notification
under clause (i), the Secretary shall reallo-
cate the funds that the State agency will not
expend as the Secretary considers appro-
priate and equitable.
‘‘(D) 
MINIMUM
ALLOCATION.—Notwith-
standing subparagraphs (A) through (C), the
Secretary shall ensure that each State agency op-
erating an employment and training program
shall receive not less than $50,000 for each fiscal
year.’’.
SEC. 1412. INCOME CALCULATION.
Section 6(f) of the Food Stamp Act of 1977 (7 U.S.C.
2015(f)) is amended by striking the third sentence and in-
serting the following: ‘‘The State agency may consider ei-
ther all income and financial resources of the individual
rendered ineligible to participate in the food stamp pro-
gram under this subsection, or the income, less a pro rata
share, and the financial resources of the ineligible individ-
ual, to determine the eligibility and the value of the allot-
ment of the household of which the individual is a mem-
ber.’’.
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SEC. 1413. COMPARABLE TREATMENT FOR DISQUALIFICA-
TION.
(a) IN GENERAL.—Section 6 of the Food Stamp Act
of 1977 (7 U.S.C. 2015) is amended by adding at the end
the following:
‘‘(i) COMPARABLE TREATMENT
FOR DISQUALIFICA-
TION.—
‘‘(1) IN GENERAL.—If a disqualification is im-
posed on a member of a household for a failure of the
member to perform an action required under a Fed-
eral, State, or local law relating to a welfare or pub-
lic assistance program, the State agency may impose
the same disqualification on the member of the house-
hold under the food stamp program.
‘‘(2) APPLICATION AFTER DISQUALIFICATION PE-
RIOD.—A member of a household disqualified under
paragraph (1) may, after the disqualification period
has expired, apply for benefits under this Act and
shall be treated as a new applicant, except that a
prior disqualification under subsection (d) shall be
considered in determining eligibility.’’.
(b) CONFORMING AMENDMENT.—Section 6(d)(2)(A) of
the Act (7 U.S.C. 2015(d)(2)(A)) is amended by striking
‘‘that is comparable to a requirement of paragraph (1)’’.
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SEC. 1414. COOPERATION WITH CHILD SUPPORT AGENCIES.
Section 6 of the Food Stamp Act of 1977 (7 U.S.C.
2015) (as amended by section 1413) is further amended by
adding at the end the following:
‘‘(j) CUSTODIAL PARENT’S COOPERATION WITH CHILD
SUPPORT AGENCIES.—
‘‘(1) IN
GENERAL.—At the option of a State
agency, subject to paragraphs (2) and (3), no natural
or adoptive parent or other individual (collectively re-
ferred to in this subsection as ‘the individual’) who is
living with and exercising parental control over a
child under the age of 18 who has an absent parent
shall be eligible to participate in the food stamp pro-
gram unless the individual cooperates with the State
agency administering the program established under
part D of title IV of the Social Security Act (42
U.S.C. 651 et seq.)—
‘‘(A) in establishing the paternity of the
child (if the child is born out of wedlock); and
‘‘(B) in obtaining support for—
‘‘(i) the child; or
‘‘(ii) the individual and the child.
‘‘(2) GOOD
CAUSE
FOR
NONCOOPERATION.—
Paragraph (1) shall not apply to the individual if
good cause is found for refusing to cooperate, as deter-
mined by the State agency in accordance with stand-
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ards prescribed by the Secretary in consultation with
the Secretary of Health and Human Services. The
standards shall take into consideration circumstances
under which cooperation may be against the best in-
terests of the child.
‘‘(3) FEES.—Paragraph (1) shall not require the
payment of a fee or other cost for services provided
under part D of title IV of the Social Security Act
(42 U.S.C. 651 et seq.).’’.
SEC. 1415. DISQUALIFICATION FOR CHILD SUPPORT AR-
REARS.
Section 6 of the Food Stamp Act of 1977 (7 U.S.C.
2015) (as amended by section 1414) is further amended by
adding at the end the following:
‘‘(k) DISQUALIFICATION
FOR CHILD SUPPORT AR-
REARS.—
‘‘(1) IN
GENERAL.—At the option of a State
agency, except as provided in paragraph (2), no indi-
vidual shall be eligible to participate in the food
stamp program as a member of any household during
any month that the individual is delinquent in any
payment due under a court order for the support of
a child of the individual.
‘‘(2) EXCEPTIONS.—Paragraph (1) shall not
apply if—
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‘‘(A) a court is allowing the individual to
delay payment; or
‘‘(B) the individual is complying with a
payment plan approved by a court or the State
agency designated under part D of title IV of the
Social Security Act (42 U.S.C. 651 et seq.) to
provide support for the child of the individual.’’.
SEC. 1416. PERMANENT DISQUALIFICATION FOR PARTICI-
PATING IN 2 OR MORE STATES.
Section 6 of the Food Stamp Act of 1977 (7 U.S.C.
2015) (as amended by section 1415) is further amended by
adding at the end the following:
‘‘(l) PERMANENT DISQUALIFICATION FOR PARTICIPAT-
ING IN 2 OR MORE STATES.—An individual shall be perma-
nently ineligible to participate in the food stamp program
as a member of any household if the individual is found
by a State agency to have made, or is convicted in Federal
or State court of having made, a fraudulent statement or
representation with respect to the place of residence of the
individual in order to receive benefits simultaneously from
2 or more States under the food stamp program.’’.
SEC. 1417. WORK REQUIREMENT.
(a) IN GENERAL.—Section 6 of the Food Stamp Act
of 1977 (7 U.S.C. 2015) (as amended by section 1416) is
further amended by adding at the end the following:
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‘‘(m) WORK REQUIREMENT.—
‘‘(1) DEFINITION OF WORK PROGRAM.—In this
subsection, the term ‘work program’ means—
‘‘(A) a program under the Job Training
Partnership Act (29 U.S.C. 1501 et seq.);
‘‘(B) a program under section 236 of the
Trade Act of 1974 (19 U.S.C. 2296); or
‘‘(C) a program of employment or training
operated or supervised by a State or political
subdivision of a State that meets standards ap-
proved by the Governor of the State, including a
program under subsection (d)(4) other than a job
search program or a job search training program
under clause (i) or (ii) of subsection (d)(4)(B).
‘‘(2) WORK REQUIREMENT.—Except as otherwise
provided in this subsection, no individual shall be eli-
gible to participate in the food stamp program as a
member of any household if, during the preceding 12-
month period, the individual received food stamp ben-
efits for not less than 6 months during which the in-
dividual did not—
‘‘(A) work 20 hours or more per week, aver-
aged monthly; or
‘‘(B) participate in and comply with the re-
quirements of a work program for 20 hours or
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more per week, as determined by the State agen-
cy.
‘‘(3) EXCEPTIONS.—Paragraph (2) shall not
apply to an individual if the individual is—
‘‘(A) under 18 or over 50 years of age;
‘‘(B) medically certified as physically or
mentally unfit for employment;
‘‘(C) a parent or other member of a house-
hold with responsibility for a dependent child; or
‘‘(D) otherwise exempt under subsection
(d)(2).
‘‘(4) WAIVER.—On the request of a State agency,
the Secretary may waive the applicability of para-
graph (2) to any group of individuals in the State if
the Secretary makes a determination that the area in
which the individuals reside—
‘‘(A) has an unemployment rate of over 8
percent; or
‘‘(B) does not have a sufficient number of
jobs to provide employment for the individuals.’’.
(b) TRANSITION PROVISION.—Prior to October 1,
1996, the term ‘‘preceding 12-month period’’ in section
6(m)(2) of the Food Stamp Act of 1977 (as added by sub-
section (a)) means the preceding period that begins on Octo-
ber 1, 1995.
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SEC. 1418. DISQUALIFICATION OF FLEEING FELONS.
Section 6 of the Food Stamp Act of 1977 (7 U.S.C.
2015) (as amended by section 1417) is further amended by
adding at the end the following:
‘‘(n) DISQUALIFICATION
OF FLEEING FELONS.—No
member of a household who is otherwise eligible to partici-
pate in the food stamp program shall be eligible to partici-
pate in the program as a member of that or any other
household during any period during which the individual
is—
‘‘(1) fleeing to avoid prosecution, or custody or
confinement after conviction, under the laws of the
place from which the individual flees, for a crime, or
attempt to commit a crime, which is a felony under
the laws of the place from which the individual flees,
or which, in the case of the State of New Jersey, is
a high misdemeanor under the laws of the State; or
‘‘(2) violating a condition of probation or parole
imposed under a Federal or State law.’’.
SEC. 1419. ELECTRONIC BENEFIT TRANSFERS.
Section 7 of the Food Stamp Act of 1977 (7 U.S.C.
2016) is amended by adding at the end the following:
‘‘(j) ELECTRONIC BENEFIT TRANSFERS.—
‘‘(1) APPLICABLE LAW.—
‘‘(A) IN GENERAL.—Disclosures, protections,
responsibilities, and remedies established by the