In the Senate of the United States,
June 25 (legislative day, June 22), 1993.
Resolved, That the bill from the House of Representa-
tives (H.R. 2264) entitled ‘‘An Act to provide for reconcili-
ation pursuant to section 7 of the concurrent resolution on
the budget for fiscal year 1994’’, do pass with the following
AMENDMENT:
Strike out all after the enacting clause and insert:
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Omnibus Budget Rec-
onciliation Act of 1993’’.
SEC. 2. TABLE OF CONTENTS.
The table of contents is as follows:
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TITLE I—COMMITTEE ON AGRICULTURE, NUTRITION, AND
FORESTRY
TITLE II—COMMITTEE ON ARMED SERVICES
TITLE III—COMMITTEE ON BANKING, HOUSING, AND URBAN
AFFAIRS
TITLE IV—COMMUNICATIONS AND TRANSPORTATION
TITLE V—COMMITTEE ON ENERGY AND NATURAL RESOURCES
TITLE VI—COMMITTEE ON ENVIRONMENT AND PUBLIC WORKS
TITLE VII—FINANCE COMMITTEE RECONCILIATION PROVISIONS
RELATING TO MEDICARE, MEDICAID, AND OTHER PROGRAMS
TITLE VIII—FINANCE COMMITTEE REVENUE PROVISIONS
TITLE IX—COMMITTEE ON FOREIGN RELATIONS
TITLE X—COMMITTEE ON GOVERNMENTAL AFFAIRS
TITLE XI—COMMITTEE ON THE JUDICIARY
TITLE XII—COMMITTEE ON LABOR AND HUMAN RESOURCES
TITLE XIII—VETERANS’ PROGRAMS
TITLE XIV—ENFORCEMENT PROCEDURES
TITLE XV—MISCELLANEOUS PROVISIONS
TITLE I—COMMITTEE ON AGRI-
CULTURE, 
NUTRITION, 
AND
FORESTRY
SEC. 1001. SHORT TITLE AND TABLE OF CONTENTS.
(a) SHORT TITLE.—This title may be cited as the ‘‘Ag-
ricultural Reconciliation Act of 1993’’.
(b) TABLE OF CONTENTS.—The table of contents of this
title is as follows:
Sec. 1001. Short title and table of contents.
Subtitle A—Commodity Programs
Sec. 1101. Wheat program.
Sec. 1102. Feed grain program.
Sec. 1103. Upland cotton program.
Sec. 1104. Rice program.
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Sec. 1105. Dairy program.
Sec. 1106. Tobacco program.
Sec. 1107. Sugar program.
Sec. 1108. Oilseeds program.
Sec. 1109. Peanut program.
Sec. 1110. Honey program.
Sec. 1111. Wool and mohair program.
Subtitle B—Restructuring of Loan Programs
Sec. 1201. Electric and telephone loan programs.
Subtitle C—Food Stamp Program
Sec. 1301. Uniform reimbursement rates.
Subtitle D—Agricultural Trade
Sec. 1401. Market promotion program.
Sec. 1402. Acreage reduction requirements.
Sec. 1403. End-use certificates.
Sec. 1404. Sense of Congress regarding the export of vegetable oil.
Subtitle E—Miscellaneous
Sec. 1501. Federal crop insurance.
Sec. 1502. Environmental conservation acreage reserve program amendments.
Sec. 1503. Admission, entrance, and recreation fees.
Sec. 1504. Sense of the Senate regarding deficit reduction.
Subtitle A—Commodity Programs
SEC. 1101. WHEAT PROGRAM.
Section 107B(c)(1)(E) of the Agricultural Act of 1949
(7 U.S.C. 1445b–3a(c)(1)(E)) is amended—
(1) in the subparagraph heading, by striking ‘‘0/
92 PROGRAM’’ and inserting ‘‘0/85 PROGRAM’’; and
(2) by inserting after ‘‘8 percent’’ both places it
appears in clause (i) the following: ‘‘for each of the
1991 through 1993 crops, and 15 percent for each of
the 1994 and 1995 crops (except as provided in clause
(vii)),’’, and by adding at the end of the subpara-
graph the following new clause:
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‘‘(vii) EXCEPTIONS
TO
0/85.—In the
case of each of the 1994 and 1995 crops of
wheat, producers on a farm shall be eligible
to receive deficiency payments as provided
in clause (ii) if an acreage limitation pro-
gram under subsection (e) is in effect for the
crop and—
‘‘(I)(aa) the producers have been
determined by the Secretary (in ac-
cordance with section 503(c)) to be pre-
vented from planting the crop or have
incurred a reduced yield for the crop
(due to a natural disaster); and
‘‘(bb) the producers elect to devote
a portion of the maximum payment
acres for wheat (as calculated under
subparagraph (C)(ii)) equal to more
than 8 percent of the wheat acreage, to
conservation uses; or
‘‘(II) the producers elect to devote
a portion of the maximum payment
acres for wheat (as calculated under
subparagraph (C)(ii)) equal to more
than 8 percent of the wheat acreage, to
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alternative crops as provided in sub-
paragraph (F).’’.
SEC. 1102. FEED GRAIN PROGRAM.
(a) 0/92 PROGRAM.—Section 105B(c)(1)(E) of the Ag-
ricultural Act of 1949 (7 U.S.C. 1444f(c)(1)(E)) is amend-
ed—
(1) in the subparagraph heading, by striking ‘‘0/
92 PROGRAM’’ and inserting ‘‘0/85 PROGRAM’’; and
(2) by inserting after ‘‘8 percent’’ both places it
appears in clause (i) the following: ‘‘for each of the
1991 through 1993 crops, and 15 percent for each of
the 1994 and 1995 crops (except as provided in clause
(vii)),’’, and by adding at the end of the subpara-
graph the following new clause:
‘‘(vii) EXCEPTIONS
TO
0/85.—In the
case of each of the 1994 and 1995 crops of
feed grains, producers on a farm shall be el-
igible to receive deficiency payments as pro-
vided in clause (ii) if an acreage limitation
program under subsection (e) is in effect for
the crop and—
‘‘(I)(aa) the producers have been
determined by the Secretary (in ac-
cordance with section 503(c)) to be pre-
vented from planting the crop or have
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incurred a reduced yield for the crop
(due to a natural disaster); and
‘‘(bb) the producers elect to devote
a portion of the maximum payment
acres for feed grains (as calculated
under subparagraph (C)(ii)) equal to
more than 8 percent of the feed grain
acreage, to conservation uses; or
‘‘(II) the producers elect to devote
a portion of the maximum payment
acres for feed grains (as calculated
under subparagraph (C)(ii)) equal to
more than 8 percent of the feed grain
acreage, to alternative crops as pro-
vided in subparagraph (F).’’.
(b) 
TECHNICAL
AMENDMENT.—Section
105B(c)(1)(B)(iii)(IV)(bb) of such Act is amended by strik-
ing ‘‘clause (i)(I)’’ and inserting ‘‘clauses (i)(I) and
(ii)(I)’’.
SEC. 1103. UPLAND COTTON PROGRAM.
(a) 50/92 PROGRAM.—Section 103B(c)(1)(D) of the
Agricultural Act of 1949 (7 U.S.C. 1444–2(c)(1)(D)) is
amended—
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(1) in the subparagraph heading, by striking
‘‘50/92 PROGRAM’’ and inserting ‘‘50/85 PROGRAM’’;
and
(2) by inserting after ‘‘8 percent’’ both places it
appears in clause (i) the following: ‘‘for each of the
1991 through 1993 crops, and 15 percent for each of
the 1994 and 1995 crops (except as provided in clause
(v)(II)),’’, and in clause (v)—
(A) by striking ‘‘(v) PREVENTED
PLANT-
ING.—If’’ and inserting the following:
‘‘(v) PREVENTED
PLANTING
AND
RE-
DUCED YIELDS.—
‘‘(I) 
1991 
THROUGH
1993
CROPS.—In the case of each of the 1991
through 1993 crops of upland cotton,
if’’; and
(B) by adding at the end the following new
subclause:
‘‘(II) 1994 AND 1995 CROPS.—In
the case of each of the 1994 and 1995
crops of upland cotton, producers on a
farm shall be eligible to receive defi-
ciency payments as provided in clause
(iii) if an acreage limitation program
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under subsection (e) is in effect for the
crop and—
‘‘(aa) the producers have
been determined by the Secretary
(in 
accordance 
with 
section
503(c)) to be prevented from
planting the crop or have in-
curred a reduced yield for the
crop (due to a natural disaster)
and the producers elect to devote a
portion of the maximum payment
acres for upland cotton (as cal-
culated 
under 
subparagraph
(C)(ii)) equal to more than 8 per-
cent of the upland cotton acreage,
to conservation uses; or
‘‘(bb) the producers elect to
devote a portion of the maximum
payment acres for upland cotton
(as calculated under subpara-
graph (C)(ii)) equal to more than
8 percent of the upland cotton
acreage, to alternative crops as
provided in subparagraph (E).’’.
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(b) 
ACREAGE
LIMITATION
PROGRAM.—Section
103B(e)(1)(D) of such Act is amended by inserting after
‘‘30 percent’’ the following: ‘‘for each of the 1991 through
1994 crops, and 291⁄2 percent for the 1995 crop’’.
SEC. 1104. RICE PROGRAM.
Section 101B(c)(1)(D) of the Agricultural Act of 1949
(7 U.S.C. 1441–2(c)(1)(D)) is amended—
(1) in the subparagraph heading, by striking
‘‘50/92 PROGRAM’’ and inserting ‘‘50/85 PROGRAM’’;
and
(2) by inserting after ‘‘8 percent’’ both places it
appears in clause (i) the following: ‘‘for each of the
1991 through 1993 crops, and 15 percent for each of
the 1994 and 1995 crops (except as provided in clause
(v)(II)),’’, and in clause (v)—
(A) by striking ‘‘(v) PREVENTED
PLANT-
ING.—If’’ and inserting the following:
‘‘(v) PREVENTED
PLANTING
AND
RE-
DUCED YIELDS.—
‘‘(I) 
1991 
THROUGH
1993
CROPS.—In the case of each of the 1991
through 1993 crops of rice, if’’; and
(B) by adding at the end the following new
subclause:
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‘‘(II) 1994 AND 1995 CROPS.—In
the case of each of the 1994 and 1995
crops of rice, producers on a farm shall
be eligible to receive deficiency pay-
ments as provided in clause (iii) if an
acreage limitation program under sub-
section (e) is in effect for the crop
and—
‘‘(aa) the producers have
been determined by the Secretary
(in 
accordance 
with 
section
503(c)) to be prevented from
planting the crop or have in-
curred a reduced yield for the
crop (due to a natural disaster)
and the producers elect to devote a
portion of the maximum payment
acres for rice (as calculated under
subparagraph (C)(ii)) equal to
more than 8 percent of the rice
acreage, to conservation uses; or
‘‘(bb) the producers elect to
devote a portion of the maximum
payment acres for rice (as cal-
culated 
under 
subparagraph
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(C)(ii)) equal to more than 8 per-
cent of the rice acreage, to alter-
native crops as provided in sub-
paragraph (E).’’.
SEC. 1105. DAIRY PROGRAM.
(a) IN GENERAL.—Section 204 of the Agricultural Act
of 1949 (7 U.S.C. 1446e) is amended—
(1) in subsection (c)(3)—
(A) in the first sentence of subparagraph
(A), by striking ‘‘The Secretary’’ and inserting
‘‘Subject to subparagraph (B), the Secretary’’;
(B) by redesignating subparagraph (B) as
subparagraph (C); and
(C) by inserting after subparagraph (A) the
following new subparagraph:
‘‘(B) GUIDELINES.—In the case of pur-
chases of butter and nonfat dry milk that are
made by the Secretary under this section on or
after the date of enactment of this clause, in allo-
cating the rate of price support between the pur-
chase prices of butter and nonfat dry milk under
this paragraph, the Secretary may not—
‘‘(i) offer to purchase butter for more
than $0.65 per pound; or
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‘‘(ii) offer to purchase nonfat dry milk
for less than $1.034 per pound.’’; and
(2) in subsection (h)(2)—
(A) by striking ‘‘and’’ at the end of sub-
paragraph (A);
(B) by striking the period at the end of sub-
paragraph (B) and inserting ‘‘; and’’; and
(C) by adding at the end the following new
subparagraph:
‘‘(C) during calendar year 1996, 10 cents
per hundredweight of milk marketed, which rate
shall be adjusted on or before May 1 of calendar
year 1996 in the manner provided in subpara-
graph (B).’’.
(b) SALE, MARKETING, OR USE OF BOVINE GROWTH
HORMONE.—Section 204 of such Act is amended—
(1) by redesignating subsection (k) as subsection
(l); and
(2) by inserting after subsection (j) the following
new subsection:
‘‘(k) SALE, MARKETING, OR USE OF BOVINE GROWTH
HORMONE.—
‘‘(1) DEFINITION
OF
BOVINE
GROWTH
HOR-
MONE.—As used in this subsection, the term ‘bovine
growth hormone’ means a synthetic growth hormone
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produced through the process of recombinant DNA
techniques that is intended for use in bovine animals.
‘‘(2) PROHIBITION
ON
SALE, MARKETING, OR
USE.—During the period beginning on the date of en-
actment of this paragraph and ending on September
30, 1994, it shall be unlawful for a person to sell,
market, or use bovine growth hormone for commercial
agricultural purposes.
‘‘(3) ENFORCEMENT.—Not later than 30 days
after the date of enactment of this paragraph, the Sec-
retary shall issue regulations to provide for the en-
forcement of the prohibition contained in paragraph
(2).’’.
(c) COMMERCIAL USE OF BOVINE GROWTH HORMONE
IN OTHER COUNTRIES.—Section 204(k) of such Act (as
added by subsection (b)(2)) is further amended by adding
at the end the following new paragraph:
‘‘(4) EXTENSION.—The Secretary shall have the
authority to continue the prohibition on the commer-
cial use of bovine growth hormone beyond the period
referred to in paragraph (2) until the President cer-
tifies to Congress that other major milk and dairy ex-
porting countries have approved the commercial use
of bovine growth hormone.’’.
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(d) CONFORMING AMENDMENTS.—Section 204 of such
Act is amended—
(1) in the section heading, by striking ‘‘1995’’
and inserting ‘‘1996’’;
(2) by striking ‘‘1995’’ each place it appears
(other than in subsection (h)(2)(B)) and inserting
‘‘1996’’; and
(3) in subsection (g)(2), by striking ‘‘1994’’ and
inserting ‘‘1995’’.
SEC. 1106. TOBACCO PROGRAM.
(a) DOMESTIC MARKETING ASSESSMENT.—Part I of
subtitle B of title III of the Agricultural Adjustment Act
of 1938 (7 U.S.C. 1311 et seq.) is amended by adding at
the end the following new section:
‘‘SEC. 320C. DOMESTIC MARKETING ASSESSMENT.
‘‘(a) CERTIFICATION.—A domestic manufacturer of
cigarettes shall certify to the Secretary, for each calendar
year, the percentage of the quantity of tobacco that the man-
ufacturer uses to produce cigarettes during the year that
is produced in the United States.
‘‘(b) PENALTIES.—
‘‘(1) IN GENERAL.—A domestic manufacturer of
cigarettes that has failed, as determined by the Sec-
retary after notice and opportunity for a hearing, to
use in the manufacture of cigarettes during a cal-
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bacco used by the manufacturer to produce ciga-
rettes during the preceding calendar year; by
‘‘(B) the difference between—
‘‘(i) 1⁄2 of the sum of—
‘‘(I) the average price per pound
received by domestic producers for
Burley tobacco during the preceding
calendar year; and
‘‘(II) the average price per pound
received by domestic producers for
Flue-cured tobacco during the preced-
ing calendar year; and
‘‘(ii) the average price per pound of
unmanufactured imported tobacco during
the preceding calendar year, as determined
by the Secretary.
‘‘(3) 
COLLECTION.—An 
assessment 
imposed
under this subsection shall be—
‘‘(A) collected by this Secretary and trans-
mitted to the Commodity Credit Corporation;
and
‘‘(B) enforced in the same manner as pro-
vided in section 320B.
‘‘(d) PURCHASE OF BURLEY TOBACCO.—
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‘‘(1) IN GENERAL.—A domestic manufacturer of
cigarettes described in subsection (b) shall purchase
from the inventories of the producer-owned coopera-
tive marketing associations for Burley tobacco de-
scribed in section 320B(a)(2), at the applicable list
price published by the association, the quantity of to-
bacco described in paragraph (2).
‘‘(2) QUANTITY.—Subject to paragraph (3), the
quantity of Burley tobacco required to be purchased
by a manufacturer during a calendar year under this
subsection shall equal 1⁄2 of the quantity of imported
tobacco used by the manufacturer to produce ciga-
rettes during the preceding calendar year that exceeds
25 percent of the quantity of all tobacco used by the
manufacturer to produce cigarettes during the preced-
ing calendar year.
‘‘(3) LIMITATION.—If the total quantity of Bur-
ley tobacco required to be purchased by all manufac-
turers under paragraph (2) would reduce the inven-
tories of the producer-owned cooperative marketing
associations for Burley tobacco to less than the reserve
stock level for Burley tobacco, the Secretary shall re-
duce the quantity of tobacco required to be purchased
by manufacturers under paragraph (2), on a pro rata
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basis, to ensure that the inventories will not be less
than the reserve stock level for Burley tobacco.
‘‘(4) NONCOMPLIANCE.—If a manufacturer fails
to purchase from the inventories of the producer-
owned cooperative marketing associations the quan-
tity of Burley tobacco required under this subsection,
the manufacturer shall be subject to a penalty of 75
percent of the average market price (calculated to the
nearest whole cent) for Burley tobacco for the imme-
diately preceding year on the quantity of tobacco as
to which the failure occurs.
‘‘(5) PURCHASE REQUIREMENTS.—Tobacco pur-
chased by a manufacturer under this subsection shall
not be included in determining the quantity of to-
bacco purchased by the manufacturer under section
320B.
‘‘(e) PURCHASE OF FLUE-CURED TOBACCO.—
‘‘(1) IN GENERAL.—A domestic manufacturer of
cigarettes described in subsection (b) shall purchase
from the inventories of the producer-owned coopera-
tive marketing association for Flue-cured tobacco de-
scribed in section 320B(a)(2), at the applicable list
price published by the association, the quantity of to-
bacco described in paragraph (2).
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‘‘(2) QUANTITY.—Subject to paragraph (3), the
quantity of Flue-cured tobacco required to be pur-
chased by a manufacturer during a calendar year
under this subsection shall equal 1⁄2 of the quantity of
imported tobacco used by the manufacturer to produce
cigarettes during the preceding calendar year that ex-
ceeds 25 percent of the quantity of all tobacco used by
the manufacturer to produce cigarettes during the
preceding calendar year.
‘‘(3) LIMITATION.—If the total quantity of Flue-
cured tobacco required to be purchased by all manu-
facturers under paragraph (2) would reduce the in-
ventories of the producer-owned cooperative marketing
association for Flue-cured tobacco to less than the re-
serve stock level for Flue-cured tobacco, the Secretary
shall reduce the quantity of tobacco required to be
purchased by manufacturers under paragraph (2), on
a pro rata basis, to ensure that the inventories will
not be less than the reserve stock level for Flue-cured
tobacco.
‘‘(4) NONCOMPLIANCE.—If a manufacturer fails
to purchase from the inventories of the producer-
owned cooperative marketing association the quantity
of Flue-cured tobacco required under this subsection,
the manufacturer shall be subject to a penalty of 75
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percent of the average market price (calculated to the
nearest whole cent) for Flue-cured tobacco for the im-
mediately preceding year on the quantity of tobacco
as to which the failure occurs.
‘‘(5) PURCHASE REQUIREMENTS.—Tobacco pur-
chased by a manufacturer under this subsection shall
not be included in determining the quantity of to-
bacco purchased by the manufacturer under section
320B.
‘‘(f) ENFORCEMENT.—The Secretary may enforce this
section in the courts of the United States.’’.
(b) BUDGET DEFICIT ASSESSMENT.—
(1) IN GENERAL.—Section 106 of the Agricul-
tural Act of 1949 (7 U.S.C. 1445) is amended—
(A) in subsection (g)(1), by striking ‘‘1995’’
and inserting ‘‘1998’’; and
(B) by adding at the end the following new
subsection:
‘‘(h)(1) Effective only for each of the 1994 through
1998 crops of tobacco, an importer of tobacco that is pro-
duced outside the United States shall remit to the Commod-
ity Credit Corporation a nonrefundable marketing assess-
ment in an amount equal to the product obtained by mul-
tiplying—
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‘‘(A) the number of pounds of tobacco that is im-
ported by the importer; by
‘‘(B) the sum of—
‘‘(i) the per pound marketing assessment
imposed on purchasers of domestic Burley to-
bacco pursuant to subsection (g); and
‘‘(ii) the per pound marketing assessment
imposed on purchasers of domestic Flue-cured to-
bacco pursuant to subsection (g).
‘‘(2) An assessment imposed under this subsection shall
be paid by the importer.
‘‘(3)(A) The importer shall remit the assessment at
such time and in such manner as may be prescribed by
the Secretary.
‘‘(B) If the importer fails to comply with subpara-
graph (A), the importer shall be liable for a marketing pen-
alty at a rate equal to 37.5 percent of the sum of the average
market price (calculated to the nearest whole cent) of Flue-
cured and Burley tobacco for the immediately preceding
year on the quantity of tobacco as to which the failure oc-
curs.
‘‘(C) The Secretary may reduce an assessment in such
amount as the Secretary determines equitable in any case
in which the Secretary determines that the failure was un-
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(i) by striking ‘‘and’’ at the end of
clause (i); and
(ii) by inserting after clause (ii) the
following new clause:
‘‘(iii) each importer of Flue-cured or
Burley tobacco shall pay to the appropriate
association, for deposit in the Fund of the
association, an assessment, in an amount
that is equal to the product obtained by
multiplying—
‘‘(I) the number of pounds of to-
bacco that is imported by the importer;
by
‘‘(II) the sum of the amount of
per pound producer contributions and
purchaser assessments that are payable
by domestic producers and purchasers
of Flue-cured and Burley tobacco
under clauses (i) and (ii); and’’;
(C) in subsection (d)(2)—
(i) by inserting ‘‘or importer’’ after ‘‘or
purchaser’’;
(ii) by striking ‘‘and’’ at the end of
subparagraph (B);
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(iii) by inserting ‘‘and’’ at the end of
subparagraph (C); and
(iv) by adding at the end the following
new subparagraph:
‘‘(D) if the tobacco involved is imported by
an importer, from the importer.’’; and
(D) in subsection (h)(1)—
(i) by redesignating subparagraphs (B)
and (C) as subparagraphs (C) and (D), re-
spectively; and
(ii) by inserting after subparagraph
(A) the following new subparagraph:
‘‘(B) Each importer who fails to pay to the association
an assessment as required by subsection (d)(2) at such time
and in such manner as may be prescribed by the Secretary,
shall be liable, in addition to any amount due, to a market-
ing penalty at a rate equal to 75 percent of the average
market price (calculated to the nearest whole cent) for the
respective kind of tobacco for the immediately preceding
year on the quantity of tobacco as to which the failure oc-
curs.’’.
(3) IMPORTER ASSESSMENTS TO NO NET COST
TOBACCO
ACCOUNT.—Section 106B of such Act (7
U.S.C. 1445–2) is amended—
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(A) in subsection (c)(1), by striking ‘‘pro-
ducers and purchasers’’ and inserting ‘‘produc-
ers, purchasers, and importers’’;
(B) in subsection (d)(1)—
(i) by designating the first and second
sentences as subparagraphs (A) and (B), re-
spectively; and
(ii) by adding at the end the following
new subparagraph:
‘‘(C) The Secretary shall also require (in lieu of any
requirement under section 106A(d)(1)) that each importer
of Flue-cured and Burley tobacco shall pay to the Corpora-
tion, for deposit in the Account of the association, an assess-
ment, as determined under paragraph (2) and collected
under paragraph (3), with respect to purchases of all such
kind of tobacco imported by the importer.’’;
(C) in subsection (d)(2), by adding at the
end the following new subparagraph:
‘‘(C) The amount of the assessment to be paid by im-
porters shall be an amount that is equal to the product ob-
tained by multiplying—
‘‘(i) the number of pounds of tobacco that is im-
ported by the importer; by
‘‘(ii) the sum of the amount of per pound pro-
ducer and purchaser assessments that are payable by
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domestic producers and purchasers of the respective
kind of tobacco under this paragraph.’’;
(D) in subsection (d)(3), by adding at the
end the following new subparagraph:
‘‘(D) If Flue-cured or Burley tobacco is imported by
an importer, any importer assessment required by sub-
section (d) shall be collected from the importer.’’; and
(E) in subsection (j)(1)—
(i) by redesignating subparagraphs (B)
and (C) as subparagraphs (C) and (D), re-
spectively; and
(ii) by inserting after subparagraph
(A) the following new subparagraph:
‘‘(B) Each importer who fails to pay to the Corpora-
tion an assessment as required by subsection (d) at such
time and in such manner as may be prescribed by the Sec-
retary, shall be liable, in addition to any amount due, to
a marketing penalty at a rate equal to 75 percent of the
average market price (calculated to the nearest whole cent)
for the respective kind of tobacco for the immediately pre-
ceding year on the quantity of tobacco as to which the fail-
ure occurs.’’.
(c) FEES FOR INSPECTING IMPORTED TOBACCO.—The
second sentence of section 213(d) of the Tobacco Adjustment
Act of 1983 (7 U.S.C. 511r(d)) is amended by inserting be-
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fore the period at the end the following: ‘‘, and which shall
be comparable to fees and charges fixed and collected for
services provided in connection with tobacco produced in
the United States’’.
(d) EXTENSION OF QUOTA REDUCTION FLOORS.—
(1) BURLEY TOBACCO.—Section 319(c)(3)(C)(ii)
of the Agricultural Adjustment Act of 1938 (7 U.S.C.
1314e(c)(3)(C)(ii)) is amended—
(A) by striking ‘‘1993’’ and inserting
‘‘1996’’; and
(B) by inserting before the period at the end
the following: ‘‘, except that, in the case of each
of the 1995 and 1996 crops of Burley tobacco, the
Secretary may waive the requirements of this
clause if the Secretary determines that the re-
quirements would likely result in inventories of
the producer-owned cooperative marketing asso-
ciations for Burley tobacco described in section
320B(a)(2) to exceed 150 percent of the reserve
stock level for Burley tobacco’’.
(2) 
FLUE-CURED
TOBACCO.—Section
317(a)(1)(C)(ii) 
of 
such 
Act 
(7 
U.S.C.
1314c(a)(1)(C)(ii)) is amended—
(A) by striking ‘‘1993’’ and inserting
‘‘1996’’; and
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(B) by inserting before the period at the end
the following: ‘‘, except that, in the case of each
of the 1995 and 1996 crops of Flue-cured to-
bacco, the Secretary may waive the requirements
of this clause if the Secretary determines that the
requirements would likely result in inventories of
the producer-owned cooperative marketing asso-
ciation for Flue-cured tobacco described in sec-
tion 320B(a)(2) to exceed 150 percent of the re-
serve stock level for Flue-cured tobacco’’.
SEC. 1107. SUGAR PROGRAM.
Section 206(i) of the Agricultural Act of 1949 (7
U.S.C. 1446g(i)) is amended—
(1) in paragraph (1), by striking ‘‘equal to’’ and
all that follows through the period and inserting the
following: ‘‘equal to—
‘‘(A) in the case of marketings during each
of fiscal years 1992 through 1994, .18 cents per
pound of raw cane sugar, processed by the proc-
essor from domestically produced sugarcane or
sugarcane molasses, that has been marketed (in-
cluding the transfer or delivery of the sugar to
a refinery for further processing or marketing);
and
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‘‘(B) in the case of marketings during each
of fiscal years 1995 and 1996, .198 cents per
pound of raw cane sugar, processed by the proc-
essor from domestically produced sugarcane or
sugarcane molasses, that has been marketed (in-
cluding the transfer or delivery of the sugar to
a refinery for further processing or marketing).’’;
and
(2) in paragraph (2), by striking ‘‘equal to’’ and
all that follows through the period and inserting the
following: ‘‘equal to—
‘‘(A) in the case of marketings during each
of fiscal years 1992 through 1994, .193 cents per
pound of beet sugar, processed by the processor
from domestically produced sugar beets or sugar
beet molasses, that has been marketed; and
‘‘(B) in the case of marketings during each
of fiscal years 1995 and 1996, .2123 cents per
pound of beet sugar, processed by the processor
from domestically produced sugar beets or sugar
beet molasses, that has been marketed.’’.
SEC. 1108. OILSEEDS PROGRAM.
(a) LOAN LEVEL.—Section 205(c) of the Agricultural
Act of 1949 (7 U.S.C. 1446f(c)) is amended—
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(1) in paragraph (1), by inserting after ‘‘$5.02
per bushel’’ the following: ‘‘for each of the 1991
through 1993 crops and $4.92 per bushel for each of
the 1994 and 1995 crops’’; and
(2) in paragraph (2), by inserting after ‘‘$0.089
per pound’’ the following: ‘‘for each of the 1991
through 1993 crops and $0.087 per pound for each of
the 1994 and 1995 crops’’.
(b) LOAN MATURITY.—Section 205(h) of such Act is
amended by striking ‘‘mature on the last day of the 9th
month following the month the application for the loan is
made.’’ and inserting the following: ‘‘mature—
‘‘(1) in the case of each of the 1991 through 1993
crops, on the last day of the 9th month following the
month the application for the loan is made; and
‘‘(2) in the case of each of the 1994 and 1995
crops, on the last day of the 9th month following the
month the application for the loan is made, except
that the loan may not mature later than the last day
of the fiscal year in which the application is made.’’.
(c) LOAN ORIGINATION FEE.—Section 205(m) of such
Act is amended by adding at the end the following new
paragraph:
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‘‘(3) 
APPLICABILITY.—This 
subsection 
shall
apply only to each of the 1991 through 1993 crops of
oilseeds.’’.
SEC. 1109. PEANUT PROGRAM.
Section 108B(g) of the Agricultural Act of 1949 (7
U.S.C. 1445c–3(g)) is amended—
(1) in paragraph (1), by inserting after ‘‘1 per-
cent’’ both places it appears the following: ‘‘for each
of the 1991 through 1993 crops, and 1.1 percent for
each of the 1994 and 1995 crops,’’; and
(2) in paragraph (2)(A)—
(A) in clause (i), by striking ‘‘1⁄2 percent’’
and inserting ‘‘.5 percent for each of the 1991
through 1993 crops, and .6 percent for each of
the 1994 and 1995 crops,’’; and
(B) in clause (ii), by striking ‘‘1⁄2 percent’’
and inserting ‘‘.5 percent’’.
SEC. 1110. HONEY PROGRAM.
(a) REDUCED SUPPORT RATE.—Section 207(a) of the
Agricultural Act of 1949 (7 U.S.C. 1446h(a)) is amended
by striking ‘‘than 53.8 cents per pound.’’ and inserting the
following: ‘‘than—
‘‘(1) 53.8 cents per pound for each of the 1991
through 1993 crops; and
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‘‘(2) 47 cents per pound for each of the 1994
through 1997 crops.’’.
(b) PAYMENT LIMITATIONS.—Section 207(e)(1) of such
Act is amended—
(1) by striking ‘‘and’’ at the end of subpara-
graph (C); and
(2) by striking subparagraph (D) and inserting
the following new subparagraphs:
‘‘(D) $125,000 in the 1994 crop year;
‘‘(E) $100,000 in the 1995 crop year;
‘‘(F) $75,000 in the 1996 crop year; and
‘‘(G) $50,000 in the 1997 crop year.’’.
(c) CONFORMING AMENDMENTS.—Section 207 of such
Act (as amended by subsection (b)) is further amended by
striking ‘‘1995’’ each place it appears (other than in sub-
section (e)(1)(E)) and inserting ‘‘1997’’.
SEC. 1111. WOOL AND MOHAIR PROGRAM.
(a) PAYMENT LIMITATIONS.—Section 704(b)(1) of the
National Wool Act of 1954 (7 U.S.C. 1783(b)(1)) is amend-
ed—
(1) by striking ‘‘and’’ at the end of subpara-
graph (C); and
(2) by striking subparagraph (D) and inserting
the following new subparagraphs:
‘‘(D) $125,000 for the 1994 marketing year;
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‘‘(E) $100,000 for the 1995 marketing year;
‘‘(F) $75,000 for the 1996 marketing year;
and
‘‘(G) $50,000 for the 1997 marketing year.’’.
(b) SUPPORT PRICE FOR SHORN WOOL.—Paragraph
(3) of section 703(b) of such Act (7 U.S.C. 1782(b)(3)) is
amended to read as follows:
‘‘(3) Effective only for each of the 1994 through 1997
marketing years, the support price for shorn wool shall not
exceed the support price for shorn wool for the 1993 market-
ing year.’’.
(c) MARKETING ASSESSMENT.—Section 704(c) of such
Act (7 U.S.C. 1783(c)) is amended by striking ‘‘through
1995’’ and inserting ‘‘and 1992’’.
(d) MARKETING CHARGES.—Section 706 of such Act
(7 U.S.C. 1785) is amended by inserting after the second
sentence the following new sentence: ‘‘In determining the net
sales proceeds and national payment rates for shorn wool
and shorn mohair, the Secretary shall not deduct marketing
charges for commissions, coring, or grading.’’.
(e) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) TECHNICAL AMENDMENT.—Section 703(b)(2)
of such Act (7 U.S.C. 1782(b)(2)) is amended by
striking ‘‘1982’’ and inserting ‘‘1990’’.
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(2) CONFORMING AMENDMENTS.—Section 703 of
such Act (7 U.S.C. 1782) is amended by striking
‘‘1995’’ both places it appears in subsections (a) and
(b) and inserting ‘‘1997’’.
Subtitle B—Restructuring of Loan
Programs
SEC. 1201. ELECTRIC AND TELEPHONE LOAN PROGRAMS.
(a) LOAN PROGRAMS UNDER
THE RURAL ELEC-
TRIFICATION ACT OF 1936.—
(1) INSURED LOAN PROGRAMS.—Section 305 of
the Rural Electrification Act of 1936 (7 U.S.C. 935)
is amended—
(A) by striking subsections (b) and (d);
(B) by redesignating subsection (c) as sub-
section (b); and
(C) by inserting after subsection (b) (as so
redesignated) the following new subsections:
‘‘(c) INSURED ELECTRIC LOANS.—
‘‘(1) HARDSHIP LOANS.—
‘‘(A) IN
GENERAL.—The Administrator
shall make insured electric loans, to the extent of
qualifying applications for the loans, at an in-
terest rate of 5 percent per year to any applicant
for a loan who meets each of the following re-
quirements:
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‘‘(i) The average revenue per kilowatt-
hour sold by the applicant is not less than
120 percent of the average revenue per kilo-
watt-hour sold by all utilities in the State
in which the applicant provides service.
‘‘(ii) The average residential revenue
per kilowatt-hour sold by the applicant is
not less than 120 percent of the average res-
idential revenue per kilowatt-hour sold by
all utilities in the State in which the appli-
cant provides service.
‘‘(iii) The average per capita income of
the residents receiving electric service from
the applicant is less than the average per
capita income of the residents of the State
in which the applicant provides service, or
the median household income of the house-
holds receiving electric service from the ap-
plicant is less than the median household
income of the households in the State.
‘‘(B) SEVERE HARDSHIP LOANS.—In addi-
tion to hardship loans that are made under sub-
paragraph (A), the Administrator may make an
insured electric loan at an interest rate of 5 per-
cent per year to an applicant for a loan if, in
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the sole discretion of the Administrator, the ap-
plicant has experienced a severe hardship.
‘‘(C) LIMITATION.—The Administrator may
not make a loan under this paragraph to an ap-
plicant for the purpose of furnishing or improv-
ing electric service to a consumer located in an
urban area (as defined by the Bureau of the Cen-
sus) if the average number of consumers per mile
of line of the total electric system of the appli-
cant exceeds 17.
‘‘(2) MUNICIPAL RATE LOANS.—
‘‘(A) IN
GENERAL.—The Administrator
shall make insured electric loans, to the extent of
qualifying applications for the loans, at the in-
terest rate described in subparagraph (B) for the
term or terms selected by the applicant pursuant
to subparagraph (C).
‘‘(B) INTEREST RATE.—
‘‘(i) IN
GENERAL.—Subject to clause
(ii), the interest rate described in this sub-
paragraph on a loan to a qualifying appli-
cant shall be—
‘‘(I) the interest rate determined
by the Administrator to be equal to the
current market yield on outstanding
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municipal obligations with remaining
periods to maturity similar to the term
selected by the applicant pursuant to
subparagraph (C), but not greater than
the rate determined under section
307(a)(3)(A) of the Consolidated Farm
and Rural Development Act (7 U.S.C.
1927(a)(3)(A)) that is based on the
current market yield on outstanding
municipal obligations; plus
‘‘(II) if the applicant for the loan
makes an election pursuant to sub-
paragraph (D) to include in the loan
agreement the right of the applicant to
prepay the loan, a rate equal to the
amount by which—
‘‘(aa) the interest rate on
commercial loans for a similar
period that afford the borrower
such a right; exceeds
‘‘(bb) the interest rate on
commercial loans for the period
that do not afford the borrower
such a right.
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‘‘(ii) MAXIMUM
RATE.—The interest
rate described in this subparagraph on a
loan to an applicant for the loan shall not
exceed 7 percent if—
‘‘(I) the average number of con-
sumers per mile of line of the total
electric system of the applicant is less
than 5.50; or
‘‘(II)(aa) the average revenue per
kilowatt-hour sold by the applicant is
more than the average revenue per kil-
owatt-hour sold by all utilities in the
State in which the applicant provides
service; and
‘‘(bb) the average per capita in-
come of the residents receiving electric
service from the applicant is less than
the average per capita income of the
residents of the State in which the ap-
plicant provides service, or the median
household income of the households re-
ceiving electric service from the appli-
cant is less than the median household
income of the households in the State.
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‘‘(iii) EXCEPTION.—Clause (ii) shall
not apply to a loan to be made to an appli-
cant for the purpose of furnishing or im-
proving electric service to consumers located
in an urban area (as defined by the Bureau
of the Census) if the average number of con-
sumers per mile of line of the total electric
system of the applicant exceeds 17.
‘‘(C) LOAN TERM.—
‘‘(i) IN
GENERAL.—Subject to clause
(ii), the applicant for a loan under this
paragraph may select the term for which an
interest rate shall be determined pursuant
to subparagraph (B), and, at the end of the
term (and any succeeding term selected by
the applicant under this subparagraph),
may renew the loan for another term se-
lected by the applicant.
‘‘(ii) MAXIMUM TERM.—
‘‘(I) APPLICANT.—The applicant
may not select a term that ends more
than 35 years after the beginning of
the first term the applicant selects
under clause (i).
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‘‘(II) ADMINISTRATOR.—The Ad-
ministrator may prohibit an applicant
from selecting a term that would result
in the total term of the loan being
greater than the expected useful life of
the assets being financed.
‘‘(D) CALL PROVISION.—The Administrator
shall offer any applicant for a loan under this
paragraph the option to include in the loan
agreement the right of the applicant to prepay
the loan on terms consistent with similar provi-
sions of commercial loans.
‘‘(3) OTHER SOURCE OF CREDIT NOT REQUIRED
IN CERTAIN CASES.—The Administrator may not re-
quire any applicant for a loan made under this sub-
section who is eligible for a loan under paragraph (1)
to obtain a loan from another source as a condition
of approving the application for the loan or advanc-
ing any amount under the loan.
‘‘(d) INSURED TELEPHONE LOANS.—
‘‘(1) HARDSHIP LOANS.—
‘‘(A) IN
GENERAL.—The Administrator
shall make insured telephone loans, to the extent
of qualifying applications for the loans, at an
interest rate of 5 percent per year, to any appli-
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cant who meets each of the following require-
ments:
‘‘(i) The average number of subscribers
per mile of line in the proposed service area
of the applicant is not more than 4.
‘‘(ii) The applicant is capable of pro-
ducing net income or margins, after interest
payments on the loan applied for, of not
less than 100 percent (but not more than
300 percent) of the interest requirements on
all of the outstanding and proposed loans of
the applicant.
‘‘(iii) The Administrator has approved
a telecommunications modernization plan
for the State under paragraph (3) and, if
the plan was developed by telephone borrow-
ers under this title, the applicant is a par-
ticipant in the plan.
‘‘(B) AUTHORITY TO WAIVE TIER REQUIRE-
MENT.—The Administrator may waive the re-
quirement of subparagraph (A)(ii) in any case
in which the Administrator determines (and sets
forth the reasons for the waiver in writing) that
the requirement would prevent emergency res-
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toration of the telephone system of the applicant
or result in severe hardship to the applicant.
‘‘(C) EFFECT OF LACK OF FUNDS.—On re-
quest of any applicant who is eligible for a loan
under this paragraph for which funds are not
available, the applicant shall be considered to
have applied for a loan under title IV.
‘‘(2) COST-OF-MONEY LOANS.—
‘‘(A) IN
GENERAL.—The Administrator
may make insured telephone loans for the acqui-
sition, purchase, and installation of telephone
lines, systems, and facilities (other than build-
ings used primarily for administrative purposes,
vehicles not used primarily in construction, and
customer premise equipment) related to the fur-
nishing, improvement, or extension of rural tele-
communications service, at an interest rate equal
to the then current cost of money to the Govern-
ment of the United States for loans of similar
maturity, but not more than 7 percent per year,
to any applicant for a loan who meets the follow-
ing requirements:
‘‘(i) The average number of subscribers
per mile of line in the service area of the
applicant is not more than 15.
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‘‘(ii) The applicant is capable of pro-
ducing net income or margins, before inter-
est payments on the loan applied for, of not
less than 100 percent (but not more than
500 percent) of the interest requirements on
all of the outstanding and proposed loans of
the applicant.
‘‘(iii) The Administrator has approved
a telecommunications modernization plan
for the State under paragraph (3), and, if
the plan was developed by telephone borrow-
ers under this title, the applicant is a par-
ticipant in the plan.
‘‘(B) CALL PROVISION.—The Administrator
shall offer any applicant for a loan under this
paragraph the option to include in the loan
agreement the right of the applicant to prepay
the loan on terms consistent with similar provi-
sions of commercial loans.
‘‘(C) CONCURRENT LOAN AUTHORITY.—On
request of any applicant for a loan under this
paragraph during any fiscal year, the Adminis-
trator shall—
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‘‘(i) consider the application to be for
a loan under this paragraph and a loan
under section 408; and
‘‘(ii) if the applicant is eligible for a
loan, make a loan to the applicant under
this paragraph in an amount equal to the
amount that bears the same ratio to the
total amount of loans for which the appli-
cant is eligible under this paragraph and
under section 408, as the amount made
available for loans under this paragraph for
the fiscal year bears to the total amount
made available for loans under this para-
graph and under section 408 for the fiscal
year.
‘‘(D) EFFECT OF LACK OF FUNDS.—On re-
quest of any applicant who is eligible for a loan
under this paragraph for which funds are not
available, the applicant shall be considered to
have applied for a loan guarantee under section
306.
‘‘(3) STATE TELECOMMUNICATIONS MODERNIZA-
TION PLANS.—
‘‘(A) APPROVAL.—If, not later than 180
days after final regulations are promulgated to
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carry out this paragraph, the public utility com-
mission of any State develops a telecommuni-
cations modernization plan that meets the re-
quirements of subparagraph (B), the Adminis-
trator shall approve the plan for the State. If a
State does not develop a plan in accordance with
the requirements of the preceding sentence, the
Administrator shall approve any telecommuni-
cations modernization plan for the State that
meets the requirements that is developed by a
majority of the borrowers of telephone loans
made under this title who are located in the
State.
‘‘(B) REQUIREMENTS.—For purposes of
subparagraph (A), a telecommunications mod-
ernization plan must, at a minimum, meet the
following objectives:
‘‘(i) The plan must provide for the
elimination of party line service.
‘‘(ii) The plan must provide for the
availability of telecommunications services
for improved business, educational, and
medical services.
‘‘(iii) The plan must encourage and
improve computer networks and informa-
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tion highways for subscribers in rural
areas.
‘‘(iv) The plan must provide for—
‘‘(I) subscribers in rural areas to
be able to receive through telephone
lines—
‘‘(aa) multiple voices;
‘‘(bb) video images; and
‘‘(cc) data at a rate of at
least 1,000,000 bits of information
per second; and
‘‘(II) the proper routing of infor-
mation to subscribers.
‘‘(v) The plan must provide for uni-
form deployment schedules to ensure that
advanced services are deployed at the same
time in rural and nonrural areas.
‘‘(vi) The plan must provide for such
additional requirements for service stand-
ards as may be required by the Adminis-
trator.
‘‘(C) FINALITY OF APPROVAL.—
‘‘(i) IN
GENERAL.—A telecommuni-
cations modernization plan approved under
subparagraph (A) may not subsequently be
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disapproved. 
Notwithstanding 
subsection
(c)(1)(A)(iii), subsection (c)(2)(A)(iii), and
section 408(b)(4)(C), the Administrator and
the Governor of the telephone bank may
make a loan to a borrower serving a State
that does not have a telecommunication
modernization plan approved by the Ad-
ministrator if the loan is made less than 1
year after the Administrator has adopted
final regulations implementing subsection
(c)(3).’’.
(2) RURAL TELEPHONE BANK LOAN PROGRAM.—
Section 408 of such Act (7 U.S.C. 948) is amended—
(A) in subsection (a), by striking ‘‘, (2)’’
and all that follows through ‘‘408 of this Act,’’
and inserting ‘‘, (2) for the acquisition, pur-
chase, and installation of telephone lines, sys-
tems, and facilities (other than buildings used
primarily for administrative purposes, vehicles
not used primarily in construction, and cus-
tomer premise equipment) related to the furnish-
ing, improvement, or extension of rural tele-
communications service,’’; and
(B) in subsection (b)—
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(i) by striking paragraph (4) and in-
serting the following new paragraph:
‘‘(4) The Governor of the telephone bank may
make a loan under this section only to an applicant
for the loan who meets the following requirements:
‘‘(A) The average number of subscribers per
mile of line in the service area of the applicant
is not more than 15.
‘‘(B) The applicant is capable of producing
net income or margins, after interest payments
on the loan applied for, of not less than 100 per-
cent (but not more than 500 percent) of the in-
terest requirements on all of the outstanding and
proposed loans of the applicant.
‘‘(C) The Administrator has approved,
under section 305(d)(3), a telecommunications
modernization plan for the State in which the
applicant is located, and, if the plan was devel-
oped by telephone borrowers under title III, the
applicant is a participant in the plan.’’;
(ii) in paragraph (8)—
(I) by inserting ‘‘(A)’’ after ‘‘(8)’’;
(II) by striking ‘‘if such prepay-
ment is not made later than September
30, 1988’’ and inserting ‘‘except for
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any prepayment penalty provided for
in a loan agreement entered into before
the date of enactment of the Omnibus
Budget Reconciliation Act of 1993’’;
and
(III) by adding at the end the fol-
lowing new subparagraph:
‘‘(B) If a borrower prepays part or all of a loan
made under this section, then, notwithstanding sec-
tion 407(b), the Governor of the telephone bank shall
use the full amount of the prepayment to repay obli-
gations of the telephone bank issued pursuant to sec-
tion 407(b) before October 1, 1991, to the extent any
such obligations are outstanding.’’; and
(iii) by adding at the end the following
new paragraphs:
‘‘(9) On request of any applicant for a loan
under this section during any fiscal year, the Gov-
ernor of the telephone bank shall—
‘‘(A) consider the application to be for a
loan under this section and a loan under section
305(d)(2); and
‘‘(B) if the applicant is eligible for a loan,
make a loan to the applicant under this section
in an amount equal to the amount that bears the
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same ratio to the total amount of loans for which
the applicant is eligible under this section and
under section 305(d)(2), as the amount made
available for loans under this section for the fis-
cal year bears to the total amount made avail-
able for loans under this section and under sec-
tion 305(d)(2) for the fiscal year.
‘‘(10) On request of any applicant who is eligible
for a loan under this section for which funds are not
available, the applicant shall be considered to have
applied for a loan under section 305(d)(2).’’.
(3) FUNDING.—Section 314 of such Act (7
U.S.C. 940d) is amended to read as follows:
‘‘SEC. 314. LIMITATIONS ON AUTHORIZATION OF APPRO-
PRIATIONS.
‘‘(a) DEFINITION OF ADJUSTMENT PERCENTAGE.—As
used in this section, the term ‘adjustment percentage’
means, with respect to a fiscal year, the percentage (if any)
by which—
‘‘(1) the average of the Consumer Price Index (as
defined in section 1(f)(5) of the Internal Revenue
Code of 1986) for the 1-year period ending on July
31 of the immediately preceding fiscal year; exceeds
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‘‘(2) the average of the Consumer Price Index (as
so defined) for the 1-year period ending on July 31,
1993.
‘‘(b) FISCAL YEARS 1994 THROUGH 1998.—In the case
of each of fiscal years 1994 through 1998, there are author-
ized to be appropriated to the Administrator such sums as
may be necessary for the cost of loans in the following
amounts, for the following purposes:
‘‘(1) ELECTRIC
HARDSHIP
LOANS.—For loans
under section 305(c)(1)—
‘‘(A) for fiscal year 1994, $125,000,000; and
‘‘(B) for each of fiscal years 1995 through
1998, $125,000,000, increased by the adjustment
percentage for the fiscal year.
‘‘(2) ELECTRIC
MUNICIPAL
RATE
LOANS.—For
loans under section 305(c)(2)—
‘‘(A) for fiscal year 1994, $600,000,000; and
‘‘(B) for each of fiscal years 1995 through
1998, $600,000,000, increased by the adjustment
percentage for the fiscal year.
‘‘(3) TELEPHONE HARDSHIP LOANS.—For loans
under section 305(d)(1)—
‘‘(A) for fiscal year 1994, $125,000,000; and
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‘‘(B) for each of fiscal years 1995 through
1998, $125,000,000, increased by the adjustment
percentage for the fiscal year.
‘‘(4) TELEPHONE COST-OF-MONEY LOANS.—For
loans under section 305(d)(2)—
‘‘(A) for fiscal year 1994, $198,000,000; and
‘‘(B) for each of fiscal years 1995 through
1998, $198,000,000, increased by the adjustment
percentage for the fiscal year.
‘‘(c) FUNDING
LEVELS.—The Administrator shall
make insured loans under this title for the purposes, in the
amounts, and for the periods of time specified in subsection
(b), as provided in advance in appropriations Acts.
‘‘(d) AVAILABILITY OF FUNDS FOR INSURED LOANS.—
Amounts made available for loans under section 305 are
authorized to remain available until expended.’’.
(4) MISCELLANEOUS AMENDMENTS.—
(A) Section 2 of such Act (7 U.S.C. 902) is
amended—
(i) by inserting ‘‘(a)’’ before ‘‘The Ad-
ministrator’’;
(ii) by striking ‘‘telephone service in
rural areas, as hereinafter provided;’’ and
inserting ‘‘electric and telephone service in
rural areas, as provided in this Act, and for
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the purpose of assisting electric borrowers to
implement demand side management and
energy conservation programs;’’; and
(iii) by adding at the end the following
new subsection:
‘‘(b) Not later than January 1, 1994, the Adminis-
trator shall issue interim regulations to implement the au-
thority contained in subsection (a) to make loans for the
purpose of assisting electric borrowers to implement de-
mand side management and energy conservation programs.
If the regulations are not issued by January 1, 1994, the
Administrator shall consider any demand side management
program that is approved by a State agency to be eligible
for the loans.’’.
(B) Section 4 of such Act (7 U.S.C. 904) is
amended by inserting after ‘‘central station serv-
ice’’ the following: ‘‘and for the furnishing and
improving of electric service to persons in rural
areas, including by assisting electric borrowers
to implement demand side management and en-
ergy conservation programs’’.
(C) Section 13 of such Act (7 U.S.C. 913)
is amended—
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(i) by inserting ‘‘, except as provided
in section 203(b),’’ before ‘‘shall be deemed
to mean any area’’; and
(ii) by striking ‘‘city, village, or bor-
ough having a population in excess of fif-
teen hundred inhabitants’’ and inserting
‘‘urban area, as defined by the Bureau of
the Census’’.
(D) Section 203(b) of such Act (7 U.S.C.
924(b)) is amended by striking ‘‘one thousand
five hundred’’ and inserting ‘‘5,000’’.
(E) Section 305 of such Act (7 U.S.C. 935)
(as amended by subsection (a)(1)) is further
amended—
(i) by striking ‘‘SEC. 305. INSURED
LOANS; INTEREST RATES
AND LENDING
LEVELS.—(a) The’’ and inserting the fol-
lowing:
‘‘SEC. 305. INSURED LOANS; INTEREST RATES AND LEND-
ING LEVELS.
‘‘(a) IN GENERAL.—The’’; and
(ii) in subsection (b), by striking ‘‘(b)
Loans’’ 
and 
inserting 
‘‘(b) 
INSURED
LOANS.—Loans’’.
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(F) Section 307 of such Act (7 U.S.C. 937)
is amended by adding at the end the following
new sentence: ‘‘The Administrator may not re-
quest any applicant for an electric loan under
this Act to apply for and accept a loan in an
amount exceeding 30 percent of the credit needs
of the applicant.’’.
(G) Section 406 of such Act (7 U.S.C. 946)
is amended by adding at the end the following
new subsection:
‘‘(i) The Governor of the telephone bank may invest
in obligations of the United States the amounts in the ac-
count in the Treasury of the United States numbered
12X8139 (known as the ‘RTB Equity Fund’).’’.
(H) Section 18 of such Act (7 U.S.C. 918)
is amended—
(i) by inserting ‘‘(a) NO CONSIDER-
ATION OF BORROWER’S LEVEL OF GENERAL
FUNDS.—’’ before ‘‘The Administrator’’;
and
(ii) by adding at the end the following
new subsections:
‘‘(b) NO LOAN ORIGINATION FEES.—The Adminis-
trator and the Governor of the telephone bank may not
charge any fee or charge not expressly provided in this Act
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in connection with any loan made or guaranteed under this
Act.
‘‘(c) CONSULTANTS.—
‘‘(1) IN GENERAL.—To facilitate timely action
on applications by borrowers for financial assistance
under this Act and for approvals required of the agen-
cy pursuant to the terms of outstanding loan or secu-
rity instruments or otherwise, the Administrator may
use consultants funded by the borrower, paid for out
of the general funds of the borrower, for financial,
legal, engineering, and other technical advice and
services in connection with the review of the applica-
tion by the Rural Electrification Administration.
‘‘(2) CONFLICTS OF INTEREST.—The Adminis-
trator shall establish procedures for the selection and
the provision of technical services by consultants to
ensure that the consultants have no financial or other
potential conflicts of interest in the outcome of the ap-
plication of the borrower.
‘‘(3) PAYMENT
OF
COSTS.—The Administrator
may not, without the consent of the borrower, require,
as a condition of processing an application for ap-
proval, that the borrower agree to pay the costs, fees,
and expenses of consultants hired to provide technical
or advisory services to the Administrator.
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‘‘(4) CONTRACTS, GRANTS, AND AGREEMENTS.—
The Administrator may enter into such contracts,
grants, or cooperative agreements as are necessary to
carry out this section without regard to any require-
ment for competition, section 3709 of the Revised
Statutes (41 U.S.C. 5) and section 3324 of title 31,
United States Code.
‘‘(5) USE
OF
CONSULTANTS.—Nothing in this
subsection shall limit the authority of the Adminis-
trator to retain the services of consultants from funds
made available to the Administrator or otherwise.’’.
(I) Title III of such Act is amended by in-
serting after section 306B (7 U.S.C. 936b) the
following new sections:
‘‘SEC. 306C. ELIGIBILITY OF DISTRIBUTION BORROWERS
FOR LOANS, LOAN GUARANTEES, AND LIEN
ACCOMMODATIONS.
‘‘For the purpose of determining the eligibility of a dis-
tribution borrower not in default on the repayment of a
loan made or guaranteed under this Act for a loan, loan
guarantee, or lien accommodation under this title, a default
by a borrower from which the distribution borrower pur-
chases wholesale power shall not—
‘‘(1) be considered a default by the distribution
borrower;
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‘‘(2) reduce the eligibility of the distribution bor-
rower for assistance under this Act; or
‘‘(3) be the cause, directly or indirectly, of im-
posing any requirement or restriction on the borrower
as a condition of the assistance, except such require-
ments or restrictions as are necessary to implement a
debt restructuring agreed on by the power supply bor-
rower and the Government.
‘‘SEC. 306D. ADMINISTRATIVE PROHIBITIONS APPLICABLE
TO ELECTRIC BORROWERS.
‘‘The Administrator may not require prior approval
of, impose any requirement, restriction, or prohibition with
respect to the operations of, or deny or delay the granting
of a lien accommodation to, any electric borrower under
this Act whose net worth exceeds 110 percent of the out-
standing principal balance on all loans made or guaranteed
to the borrower by the Administrator.’’.
(b) EXPANDED ELIGIBILITY FOR LOANS FOR WATER
AND WASTE DISPOSAL FACILITIES.—Section 306(a)(1) of
the Consolidated Farm and Rural Development Act (7
U.S.C. 1926(a)(1)) is amended by inserting after the first
sentence the following new sentence: ‘‘The Secretary may
also make loans to any borrower to whom a loan has been
made under the Rural Electrification Act of 1936 (7 U.S.C.
901 et seq.), for the conservation, development, use, and con-
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trol of water, and the installation of drainage or waste dis-
posal facilities, primarily serving farmers, ranchers, farm
tenants, farm laborers, rural businesses, and other rural
residents.’’.
(c) RURAL ECONOMIC DEVELOPMENT.—Section 364 of
the Consolidated Farm and Rural Development Act (7
U.S.C. 2006f) is amended by adding at the end the follow-
ing new subsection:
‘‘(g) RURAL ECONOMIC DEVELOPMENT.—
‘‘(1) IN GENERAL.—A borrower of a loan or loan
guarantee under the Rural Electrification Act of 1936
(7 U.S.C. 901 et seq.) shall be eligible for assistance
under all programs administered by the Rural Devel-
opment Administration.
‘‘(2) PARTICIPATION.—The Administrator of the
Rural Development Administration shall encourage
and facilitate the full participation of borrowers re-
ferred to in paragraph (1) in programs administered
by the Rural Development Administration.’’.
(d) REGULATIONS.—Not later than October 1, 1993,
interim final rules shall be issued by—
(1) the Administrator of the Rural Electrifica-
tion Administration in the case of amendments made
by this section to programs administered by the
Administrator; and
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(2) the Administrator of the Rural Development
Administration in the case of amendments made by
this section to programs administered by the Admin-
istrator.
Subtitle C—Food Stamp Program
SEC. 1301. UNIFORM REIMBURSEMENT RATES.
(a) IN GENERAL.—Section 16 of the Food Stamp Act
of 1977 (7 U.S.C. 2025) is amended—
(1) in the first sentence of subsection (a)—
(A) by striking ‘‘and (5)’’ and inserting
‘‘(5)’’;
(B) by inserting before ‘‘: Provided,’’ the fol-
lowing: ‘‘, (6) automated data processing and in-
formation retrieval systems subject to the condi-
tions set forth in subsection (g), (7) food stamp
program investigations and prosecutions, and
(8) implementing and operating the immigra-
tion status verification system established under
section 1137(d) of the Social Security Act (42
U.S.C. 1320b–7(d))’’; and
(C) in the proviso, by striking ‘‘authorized
to pay each State agency an amount not less
than 75 per centum of the costs of State food
stamp program investigations and prosecutions,
and is further’’;
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(2) in subsection (g)—
(A) by striking ‘‘an amount equal to 63
percent effective on October 1, 1991, of’’ and in-
serting ‘‘the amount authorized under subsection
(a)(6) for’’; and
(B) by striking ‘‘automatic’’ and inserting
‘‘automated’’;
(3) by striking subsection (j); and
(4) by redesignating subsection (k) as subsection
(j).
(b) EFFECTIVE DATE.—
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section shall
be effective with respect to calendar quarters begin-
ning on or after April 1, 1994.
(2) BIENNIAL LEGISLATURES.—In the case of a
State whose legislature meets biennially, and does not
have a regular session scheduled in calendar year
1994, and that demonstrates to the satisfaction of the
Secretary of Agriculture that there is no mechanism,
under the constitution and laws of the State, for ap-
propriating the additional funds required by the
amendments made by this section before the next such
regular legislative session, the Secretary may delay
the effective date of all or part of the amendments
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made by subsection (a) until the beginning date of a
calendar quarter that is not later than the first cal-
endar quarter beginning after the close of the first
regular session of the State legislature after the date
of enactment of this Act.
Subtitle D—Agricultural Trade
SEC. 1401. MARKET PROMOTION PROGRAM.
(a) REDUCTION OF FUNDING LEVEL.—Section 211(c)
of the Agricultural Trade Act of 1978 (7 U.S.C. 5641(c))
is amended—
(1) in paragraph (1)—
(A) by striking ‘‘1995’’ and inserting
‘‘1993’’; and
(B) by striking ‘‘and’’ at the end;
(2) by redesignating paragraph (2) as para-
graph (3); and
(3) by inserting after paragraph (1) the follow-
ing new paragraph:
‘‘(2) in addition to any funds that may be spe-
cifically appropriated to implement a market develop-
ment program, for each of fiscal years 1994 and 1995,
of the funds of, or an equal value of commodities
owned by, the Commodity Credit Corporation—
‘‘(A) not less than $33,000,000 for—
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‘‘(i) branded promotion activities in-
volving small-sized commercial entities and
medium-sized commercial entities that are
beginning exporters; and
‘‘(ii) activities other than branded pro-
motion activities that only benefit small-
sized commercial entities and medium-sized
commercial entities, or (as determined by
the Secretary) small-sized agricultural pro-
ducers and medium-sized agricultural pro-
ducers; and
‘‘(B) in addition to funding specified in
subparagraph (A), not less than $77,000,000 for
program activities by any eligible trade organi-
zation, including organizations specified under
subparagraph (A); and’’.
(b) DEFINITIONS.—Section 102 of such Act (7 U.S.C.
5602) is amended by adding at the end the following new
paragraph:
‘‘(9) COMMERCIAL ENTITY.—
‘‘(A) IN GENERAL.—The term ‘commercial
entity’ means a cooperative or private organiza-
tion that exports or promotes an agricultural
commodity, including an entity that controls, is
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controlled by, or is under common control with
such a cooperative or private organization.
‘‘(B) 
MEDIUM-SIZED
COMMERCIAL
EN-
TITY.—The term ‘medium-sized commercial en-
tity’ means a commercial entity that employs
not less than 51, nor more than 500, individuals.
‘‘(C) SMALL-SIZED COMMERCIAL ENTITY.—
The term ‘small-sized commercial entity’ means
a commercial entity that employs not more than
50 individuals.’’.
SEC. 1402. ACREAGE REDUCTION REQUIREMENTS.
(a) IN GENERAL.—Section 1104 of the Omnibus Budg-
et Reconciliation Act of 1990 (7 U.S.C. 1445b–3a note) is
amended—
(1) in subsection (a), by striking paragraph (2)
and inserting the following new paragraph:
‘‘(2) corn under which the acreage planted to
corn for harvest on a farm would be limited to the
corn crop acreage base for the farm for the crop re-
duced by not less than 71⁄2 percent.’’; and
(2) in subsection (b)(2), by striking ‘‘grain sor-
ghum, and barley,’’.
(b) READJUSTMENT OF SUPPORT LEVELS.—Section
1302 of such Act (7 U.S.C. 1421 note) is amended—
(1) in subsection (b)—
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(A) by striking paragraph (1); and
(B) by redesignating paragraphs (2) and
(3) as paragraphs (1) and (2), respectively;
(2) in subsection (c), by striking ‘‘and other pro-
grams’’; and
(3) in subsection (d)—
(A) in paragraph (1)—
(i) by striking subparagraph (A); and
(ii) by redesignating subparagraphs
(B) and (C) as subparagraphs (A) and (B),
respectively;
(B) in paragraph (2), by striking ‘‘(A), (B),
and (C)’’ and inserting ‘‘(A) and (B)’’; and
(C) in paragraph (3)—
(i) by striking ‘‘measures specified in
subparagraph (A) of paragraph (1) and’’;
and
(ii) by striking ‘‘(B) or (C)’’ and in-
serting ‘‘(A) or (B)’’.
SEC. 1403. END-USE CERTIFICATES.
(a) IN GENERAL.—Subtitle A of title IV of the Agricul-
tural Trade Act of 1978 (7 U.S.C. 5661 et seq.) is amend-
ed—
(1) by redesignating section 404 (7 U.S.C. 5664)
as section 405; and
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(2) by inserting after section 403 the following
new section:
‘‘SEC. 404. END-USE CERTIFICATES.
‘‘(a) DEFINITIONS.—As used in this section:
‘‘(1) COVERED FOREIGN COMMODITY.—The term
‘covered foreign commodity’ means any wheat or bar-
ley produced in a foreign country that is imported
into the United States, including any imported com-
modity that will be subsequently commingled with a
like commodity produced in the United States.
‘‘(2) END-USE CERTIFICATE.—The term ‘end-use
certificate’ means a certification that describes—
‘‘(A) the class, quantity, and country of ori-
gin of the covered foreign commodity;
‘‘(B) the importer and consignee of the cov-
ered foreign commodity;
‘‘(C) the end use for which the consignee
will use the covered foreign commodity; and
‘‘(D) at the option of the Secretary, the sales
price and quality of the covered foreign commod-
ity.
‘‘(b) STATEMENT OF PURPOSE.—The Secretary shall
improve monitoring of the end use of covered foreign com-
modities, as provided in this section, in order to ensure that
exports of agricultural commodities under the programs au-
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thorized by this Act and other agricultural trade programs
are entirely produced in the United States.
‘‘(c) REQUIREMENT ON COVERED FOREIGN COMMOD-
ITIES.—The Commissioner of Customs shall not permit the
entry into, or the withdrawal from a warehouse for use in,
the United States of a covered foreign commodity, unless
the importer of record presents an end-use certificate for
the covered foreign commodity that complies with this sec-
tion at the time of entry or withdrawal, as appropriate.
‘‘(d) MAINTENANCE OF CERTIFICATE WITH COVERED
FOREIGN COMMODITY.—The end-use certificate shall be
maintained with the covered foreign commodity until the
commodity reaches the end use of the commodity within the
United States. The end use of a covered foreign commodity
includes feeding to livestock, first stage processing for
human consumption, exporting from the United States, or
(as determined by the Secretary) other end uses.
‘‘(e) CERTIFICATION.—The Secretary shall require any
importer or consignee of a covered foreign commodity to
certify, on a quarterly basis, the end use or transfer, during
the period the commodity is a covered foreign commodity,
by the importer or consignee, along with any additional
information the Secretary determines to be appropriate.
‘‘(f) COMPLIANCE.—Subsections (b), (c), and (d) of sec-
tion 402 shall apply to an importer or consignee of a cov-
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ered foreign commodity subject to the terms and conditions
specified in this section.’’.
(b) EFFECTIVE DATE.—The amendments made by sub-
section (a) shall become effective on the date that is 120
days after the date of enactment of this Act.
SEC. 1404. SENSE OF CONGRESS REGARDING THE EXPORT
OF VEGETABLE OIL.
It is the sense of Congress that the Secretary of Agri-
culture should continue aggressively to promote the export
of vegetable oil through all available authorities, including
but not limited to the export enhancement program estab-
lished under section 301 of the Agricultural Trade Act of
1978 (7 U.S.C. 5651).
Subtitle E—Miscellaneous
SEC. 1501. FEDERAL CROP INSURANCE.
(a) ACTUARIAL SOUNDNESS.—Section 506 of the Fed-
eral Crop Insurance Act (7 U.S.C. 1506) is amended by
adding at the end the following new subsection:
‘‘(n) ACTUARIAL SOUNDNESS.—The Corporation shall
take such actions as are necessary to improve the actuarial
soundness of Federal multiperil crop insurance coverage
made available under this title to achieve, on and after Oc-
tober 1, 1995, an overall projected loss ratio of not greater
than 1.1, including—
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‘‘(1) instituting appropriate requirements for
documentation of the actual production history of in-
sured producers to establish recorded or appraised
yields for Federal crop insurance coverage that more
accurately reflect the associated actuarial risk, except
that the Corporation may not carry out this para-
graph in a manner that would prevent beginning
farmers from obtaining adequate Federal crop insur-
ance, as determined by the Corporation;
‘‘(2) establishing in counties, to the extent prac-
ticable, a crop insurance option based on area yields
in a manner that allows an insured producer to qual-
ify for an indemnity if a loss has occurred in a speci-
fied area in which the farm of the insured producer
is located;
‘‘(3) establishing a database that contains the so-
cial security account and employee identification
numbers of participating producers and using the
numbers to identify insured producers who are high
risk for actuarial purposes and insured producers
who have not documented at least 4 years of produc-
tion history, to assess the performance of insurance
providers, and for other purposes permitted by law;
and
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‘‘(4) taking any other measures authorized by
law to improve the actuarial soundness of the Federal
crop insurance program while maintaining fairness
and effective coverage for agricultural producers.’’.
(b) CONFORMING AMENDMENTS.—
(1) REINSURANCE.—Section 508(h) of such Act
(7 U.S.C. 1508(h)) is amended by striking the fifth
sentence and inserting the following new sentence:
‘‘The Corporation shall also pay operating and ad-
ministrative costs to insurers of policies on which the
Corporation provides reinsurance in an amount de-
termined by the Corporation.’’.
(2) AREA YIELD PLAN.—Section 508 of such Act
(7 U.S.C. 1508) is amended by adding at the end the
following new subsection:
‘‘(n) AREA YIELD PLAN.—
‘‘(1) IN GENERAL.—Notwithstanding any other
provision of this title, the Corporation may offer, only
as an option to individual crop insurance coverage
available under this Act, a crop insurance plan based
on an area yield that allows an insured producer to
qualify for an indemnity if a loss has occurred in an
area, as specified by the Corporation, in which the
farm of the producer is located.
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‘‘(2) LEVEL OF COVERAGE.—Under a plan of-
fered under paragraph (1), an insured producer shall
be allowed to select the level of production at which
an indemnity will be paid consistent with terms and
conditions established by the Corporation.’’.
(3) YIELD COVERAGE.—Section 508A of such Act
(7 U.S.C. 1508a) is amended—
(A) in subsection (a)(1), by striking ‘‘may’’
and inserting ‘‘shall’’; and
(B) in subsection (b)—
(i) in paragraph (1)(A)—
(I) by striking ‘‘A crop insurance
contract’’ and all that follows through
‘‘producer—’’ and inserting ‘‘Under
regulations issued by the Corporation,
a crop insurance contract offered under
this title to an eligible insured pro-
ducer of a commodity with respect to
which the Corporation provides crop
insurance coverage shall make avail-
able to the producer either—’’;
(II) by striking ‘‘or’’ at the end of
clause (i);
(III) in clause (ii)—
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(aa) by striking ‘‘5’’ and in-
serting ‘‘4 building to 10’’; and
(bb) by striking the period at
the end and inserting ‘‘; or’’; and
(IV) by adding at the end the fol-
lowing new clause:
‘‘(iii) yield coverage based on—
‘‘(I) not less than 65 percent of
the transitional yield of the producer
(adjusted to reflect actual experience),
as specified in regulations issued by
the Corporation based on production
history requirements; or
‘‘(II) the area yield under section
508(n) for the crop established under
the program for the commodity in-
volved.’’;
(ii) in paragraph (1)(B)—
(I) by striking ‘‘two’’ and insert-
ing ‘‘3’’; and
(II) by inserting after ‘‘subpara-
graph (A)’’ the following: ‘‘, where
available (as determined by the Cor-
poration),’’;
(iii) in paragraph (2)—
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(I) by striking ‘‘5’’ and inserting
‘‘4 building to 10’’; and
(II) by inserting after ‘‘previous
crops,’’ the following: ‘‘not less than 65
percent of the transitional yield of the
producer (adjusted to reflect actual ex-
perience), or the area yield,’’; and
(iv) in paragraph (3)(A)(i), by insert-
ing after ‘‘farm program yield’’ the follow-
ing: ‘‘, not less than 65 percent of the tran-
sitional yield of the producer (adjusted to
reflect actual experience), as specified in
regulations issued by the Corporation based
on production history requirements, or the
area yield under section 508(n), whichever
is applicable,’’.
(c) EFFECTIVE DATE.—
(1) IN GENERAL.—Except as provided in para-
graph (2), this section and the amendments made by
this section shall become effective on October 1, 1993.
(2) REGULATIONS.—Not later than 30 days after
the date of enactment of this Act, the Secretary of Ag-
riculture shall publish, for public comment, proposed
regulations to implement the amendments made by
this section.
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SEC. 1502. ENVIRONMENTAL CONSERVATION ACREAGE RE-
SERVE PROGRAM AMENDMENTS.
Subtitle D of title XII of the Food Security Act of 1985
(16 U.S.C. 3830 et seq.) is amended—
(1) in section 1230(b) (16 U.S.C. 3830(b)), by
striking ‘‘to place in’’ and all that follows through
‘‘acres’’;
(2) in section 1231(d) (16 U.S.C. 3831(d))—
(A) by striking ‘‘may’’ and inserting
‘‘shall’’;
(B) by striking ‘‘the amount of acres speci-
fied in section 1230(b)’’ and inserting ‘‘a total of
38,000,000 acres during the 1986 through 1995
calendar years’’; and
(C) by striking ‘‘each of calendar years
1994 and 1995’’ and inserting ‘‘the 1995 cal-
endar year’’;
(3) in section 1237 (16 U.S.C. 3837)—
(A) by striking subsection (b) and inserting
the following new subsection:
‘‘(b) MINIMUM ENROLLMENT.—The Secretary shall en-
roll into the wetlands reserve program—
‘‘(1) a total of not less than 330,000 acres by the
end of the 1995 calendar year; and
‘‘(2) a total of not less than 975,000 acres during
the 1991 through 2000 calendar years.’’; and
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(B) in subsection (c), by striking ‘‘1995’’
and inserting ‘‘2000’’; and
(4) in section 1241 (16 U.S.C. 3841)—
(A) in subsection (a)—
(i) by striking ‘‘(a)(1) During each of
the fiscal years ending September 30, 1986,
and September 30, 1987’’ and inserting
‘‘(a) During each of fiscal years 1994
through 2000’’; and
(ii) by striking paragraph (2); and
(B) in subsection (b), by striking ‘‘(A)
through (E)’’ and inserting ‘‘A through E’’.
SEC. 1503. ADMISSION, ENTRANCE, AND RECREATION FEES.
(a) DEFINITIONS.—As used in this section:
(1) AREA OF CONCENTRATED PUBLIC USE.—The
term ‘‘area of concentrated public use’’ means an area
administered by the Secretary that meets each of the
following criteria:
(A) The area is managed primarily for out-
door recreation purposes.
(B) Facilities and services necessary to ac-
commodate heavy public use are provided in the
area.
(C) The area contains at least one major
recreation attraction.
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(D) Public access to the area is provided in
such a manner that admission fees can be effi-
ciently collected at 1 or more centralized loca-
tions.
(2) BOAT LAUNCHING FACILITY.—The term ‘‘boat
launching facility’’ includes any boat launching facil-
ity, regardless of whether specialized facilities or serv-
ices, such as mechanical or hydraulic boat lifts or fa-
cilities, are provided.
(3) CAMPGROUND.—The term ‘‘campground’’
means any campground where a majority of the fol-
lowing amenities are provided, as determined by the
Secretary:
(A) Tent or trailer spaces.
(B) Drinking water.
(C) An access road.
(D) Refuse containers.
(E) Toilet facilities.
(F) The personal collection of recreation use
fees by an employee or agent of the Secretary.
(G) Reasonable visitor protection.
(H) If campfires are permitted in the
campground, simple devices for containing the
fires.
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(4) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Agriculture.
(b) AUTHORITY TO IMPOSE FEES.—The Secretary—
(1) may charge admission or entrance fees at na-
tional monuments, national volcanic monuments, na-
tional scenic areas, and areas of concentrated public
use administered by the Secretary;
(2) acting through the Forest Service, shall reim-
burse the Agricultural Stabilization and Conservation
Service for administrative costs incurred under the
Stewardship Incentive Program for the actual cost of
services provided by the Agricultural Stabilization
and Conservation Service, except that the actual costs
shall not exceed 10 percent of the total annual appro-
priation for the program; and
(3) may charge recreation use fees at lands ad-
ministered by the Secretary in connection with the
use of specialized outdoor recreation sites, equipment,
services, and facilities, including visitors’ centers, pic-
nic tables, boat launching facilities, and camp-
grounds.
(c) AMOUNT OF FEES.—The amount of the admission,
entrance, and recreation fees authorized to be imposed
under this section shall be determined by the Secretary.
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SEC. 1504. SENSE OF THE SENATE REGARDING DEFICIT RE-
DUCTION.
It is the sense of the Senate that—
(1) farmers should pay no more than their fair
share of any budget reduction necessary to achieve the
goal of deficit reduction; and
(2) the level of budget reduction should take into
account and be adjusted to reflect any BTU or energy
taxes, any other taxes, reduction in interest rates, and
other user fees.
TITLE II—COMMITTEE ON
ARMED SERVICES
SEC. 2001. LIMITATION ON COST-OF-LIVING ADJUSTMENTS
FOR MILITARY RETIREES.
Paragraph (2) of section 1401a(b) of title 10, United
States Code, is amended to read as follows:
‘‘(2) PRE-AUGUST 1, 1986 MEMBERS.—
‘‘(A) GENERAL RULE.—The Secretary shall
increase the retired pay of each member and
former member who first became a member of a
uniformed service before August 1, 1986, by the
percent (adjusted to the nearest one-tenth of 1
percent) by which—
‘‘(i) the price index for the base quar-
ter of that year, exceeds
‘‘(ii) the base index.
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‘‘(B) SPECIAL
RULES
FOR
FISCAL
YEARS
1994 THROUGH 1998.—
‘‘(i) FISCAL
YEARS
1994
THROUGH
1997.—In the case of an increase in retired
pay that, pursuant to paragraph (1), be-
comes effective on December 1 of 1993, 1994,
1995, or 1996, the initial month for which
such increase is payable as part of such re-
tired pay shall (notwithstanding such De-
cember 1 effective date) be September of the
following year.
‘‘(ii) FISCAL YEAR 1998.—In the case of
an increase in retired pay that, pursuant to
paragraph (1), becomes effective on Decem-
ber 1, 1997, the initial month for which
such increase is payable as part of such re-
tired pay shall (notwithstanding such De-
cember 1 effective date) be August 1998.
‘‘(C) INAPPLICABILITY TO DISABILITY RE-
TIREES.—Subparagraph (B) does not apply with
respect to the retired pay of a member retired
under chapter 61 of this title.’’.
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TITLE III—COMMITTEE ON BANK-
ING, HOUSING, AND URBAN
AFFAIRS
SEC. 3001. NATIONAL DEPOSITOR PREFERENCE.
(a) IN GENERAL.—Section 11(d)(11) of the Federal
Deposit Insurance Act (12 U.S.C. 1821(d)(11)) is amended
to read as follows:
‘‘(11) DEPOSITOR PREFERENCE.—
‘‘(A) IN
GENERAL.—Subject to section
5(e)(2)(C), amounts realized from the liquidation
or other resolution of any insured depository in-
stitution by any receiver appointed for such in-
stitution shall be distributed to pay claims (other
than secured claims to the extent of any such se-
curity) in the following order of priority:
‘‘(i) Administrative expenses of the re-
ceiver.
‘‘(ii) Any deposit liability of the insti-
tution.
‘‘(iii) Any other general or senior li-
ability of the institution (which is not a li-
ability described in clause (iv) or (v)).
‘‘(iv) Any obligation subordinated to
depositors or general creditors (which is not
an obligation described in clause (v)).
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‘‘(v) Any obligation to shareholders or
members arising as a result of their status
as shareholders or members (including any
depository institution holding company or
any shareholder or creditor of such com-
pany).
‘‘(B) EFFECT ON STATE LAW.—
‘‘(i) IN GENERAL.—The provisions of
subparagraph (A) shall not supersede the
law of any State except to the extent such
law is inconsistent with the provisions of
such subparagraph, and then only to the ex-
tent of the inconsistency.
‘‘(ii) PROCEDURE FOR DETERMINATION
OF
INCONSISTENCY.—Upon the Corpora-
tion’s own motion or upon the request of
any person with a claim described in sub-
paragraph (A)(i) or any State which is sub-
mitted to the Corporation in accordance
with procedures which the Corporation shall
prescribe, the Corporation shall determine
whether any provision of the law of any
State is inconsistent with any provision of
subparagraph (A) and the extent of any
such inconsistency.
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‘‘(iii) JUDICIAL
REVIEW.—The final
determination of the Corporation under
clause (ii) shall be subject to judicial review
under chapter 7 of title 5, United States
Code.
‘‘(C) ACCOUNTING REPORT.—Any distribu-
tion by the Corporation in connection with any
claim described in subparagraph (A)(vi) shall be
accompanied by the accounting report required
under paragraph (15)(B).’’.
(b) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) Section 11(c)(13) of the Federal Deposit In-
surance Act (12 U.S.C. 1821(c)(13)) is amended—
(A) in subparagraph (A), by striking ‘‘sub-
ject to subparagraph (B),’’;
(B) by inserting ‘‘and’’ after the semicolon
at the end of subparagraph (A);
(C) by striking subparagraph (B); and
(D) by redesignating subparagraph (C) as
subparagraph (B).
(2) Section 11(g)(4) of the Federal Deposit In-
surance Act (12 U.S.C. 1921(g)(4)) is amended by
striking ‘‘If the Corporation’’ and inserting ‘‘Subject
to subsection (d)(11), if the Corporation’’.
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(c) EFFECTIVE DATE.—The amendments made by this
section shall apply with respect to insured depository insti-
tutions for which a receiver is appointed after the date of
the enactment of this Act.
SEC. 3002. TRANSFER OF FEDERAL RESERVE SURPLUSES.
(a) IN GENERAL.—The 1st undesignated paragraph of
section 7 of the Federal Reserve Act (12 U.S.C. 289) is
amended to read as follows:
‘‘(a) DIVIDENDS AND SURPLUS FUNDS OF RESERVE
BANKS.—
‘‘(1) STOCKHOLDER DIVIDENDS.—
‘‘(A) IN GENERAL.—After all necessary ex-
penses of a Federal reserve bank have been paid
or provided for, the stockholders of the bank shall
be entitled to receive an annual dividend of 6
percent on paid-in capital stock.
‘‘(B) DIVIDEND CUMULATIVE.—The entitle-
ment to dividends under subparagraph shall be
cumulative.
‘‘(2) DEPOSIT OF NET EARNINGS IN SURPLUS
FUND.—That portion of net earnings of each Federal
reserve bank which remains after dividend claims
under subparagraph (A) have been fully met shall be
deposited in the surplus fund of the bank.
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‘‘(3) PAYMENT
TO
TREASURY.—During fiscal
years 1997 and 1998, any amount in the surplus
fund of any Federal reserve bank in excess of the
amount equal to 3 percent of the total paid-in capital
and surplus of the member banks of such bank shall
be transferred to the Board for transfer to the Sec-
retary of the Treasury for deposit in the general fund
of the Treasury.’’.
(b) ADDITIONAL TRANSFERS FOR FISCAL YEARS 1997
AND 1998.—
(1) IN GENERAL.—In addition to the amounts
required to be transferred from the surplus funds of
the Federal reserve banks pursuant to section 7(a)(3)
of the Federal Reserve Act, the Federal reserve banks
shall transfer from such surplus funds to the Board
of Governors of the Federal Reserve System for trans-
fer to the Secretary of the Treasury for deposit in the
general fund of the Treasury, a total amount of
$106,000,000 in fiscal year 1997 and a total amount
of $107,000,000 in fiscal year 1998.
(2) ALLOCATION BY FED.—Of the total amount
required to be paid by the Federal reserve banks
under paragraph (1) for fiscal year 1997 or 1998, the
Board of Governors of the Federal Reserve System
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shall determine the amount each such bank shall pay
in such fiscal year.
(3) REPLENISHMENT OF SURPLUS FUND PROHIB-
ITED.—No Federal reserve bank may replenish such
bank’s surplus fund by the amount of any transfer by
such bank under paragraph (1) during fiscal years
1997 and 1998.
(c) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) The penultimate undesignated paragraph of
section 7 of the Federal Reserve Act (12 U.S.C. 290)
is amended by striking ‘‘The net earnings derived’’
and inserting ‘‘(b) USE OF EARNINGS TRANSFERRED
TO THE TREASURY.—The net earnings derived’’.
(2) The last undesignated paragraph of section 7
of the Federal Reserve Act (12 U.S.C. 531) is amend-
ed by striking ‘‘Federal reserve banks’’ and inserting
‘‘(c) EXEMPTION FROM TAXATION.—Federal reserve
banks’’.
SEC. 3003. USE OF RETURN DATA FOR INCOME VERIFICA-
TION UNDER CERTAIN HOUSING ASSISTANCE
PROGRAMS.
(a) AMENDMENTS TO HOUSING ACTS.—Section 904 of
the Stewart B. McKinney Homeless Assistance Amendments
Act of 1988 (42 U.S.C. 3544) is amended as follows:
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(1) DEFINITION.—In subsection (a), by adding
at the end the following:
‘‘(4) PROGRAM OF THE DEPARTMENT OF HOUS-
ING AND URBAN DEVELOPMENT.—The term ‘program
of the Department of Housing and Urban Develop-
ment’ includes Indian housing programs assisted
under title II of the United States Housing Act of
1937.’’.
(2) CONSENT FORMS.—In subsection (b)—
(A) in paragraph (1), by striking ‘‘and’’ at
the end;
(B) in paragraph (2), by striking the period
at the end and inserting ‘‘; and’’;
(C) by inserting after paragraph (2) the fol-
lowing new paragraph:
‘‘(3) sign a consent form approved by the Sec-
retary authorizing the Secretary to request the Com-
missioner of Social Security and the Secretary of the
Treasury to release information pursuant to section
6103(l)(7)(D)(ix) of the Internal Revenue Code of
1986 with respect to such applicant or participant for
the sole purpose of the Secretary verifying income in-
formation pertinent to the applicant’s or partici-
pant’s eligibility or level of benefits.’’; and
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(D) in the last sentence, by striking ‘‘This’’
and inserting the following: ‘‘Except as provided
in this subsection, this’’.
(2) 
APPLICANT, 
PARTICIPANT, 
AND
PUBLIC
HOUSING
AGENCY
PROTECTIONS.—In 
subsection
(c)(2)—
(A) in subparagraph (A)—
(i) in the matter preceding clause (i)—
(I) by inserting after ‘‘compensa-
tion law’’ the following: ‘‘or pursuant
to section 6103(l)(7)(D)(ix) of the In-
ternal Revenue Code of 1986 from the
Commissioner of Social Security or the
Secretary of the Treasury’’; and
(II) by inserting ‘‘(in the case of
information obtained pursuant to such
section 303(i))’’ before ‘‘representa-
tives’’; and
(ii) in clause (ii), by inserting ‘‘or
public housing agency’’ after ‘‘owner’’ each
place it appears; and
(B) in subparagraph (B), by inserting after
‘‘wages’’ each place it appears the following: ‘‘,
other earnings or income,’’.
(3) PENALTY.—In subsection (c)(3)—
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(A) in subparagraph (A), by inserting ‘‘or
section 6103(l)(7)(D)(ix) of the Internal Revenue
Code of 1986’’ after ‘‘Social Security Act’’; and
(B) in the first sentence of subparagraph
(B)—
(i) by striking clause (i) and inserting
the following: ‘‘(i) a negligent or knowing
disclosure of information referred to in this
section, section 303(i) of the Social Security
Act, or section 6103(l)(7)(D)(ix) of the In-
ternal Revenue Code of 1986 about such
person by an officer or employee of any
public housing agency or owner (or em-
ployee thereof), which disclosure is not au-
thorized by this section, such section 303(i),
such section 6103(l)(7)(D)(ix), or any regu-
lation implementing this section, such sec-
tion 
303(i), 
or 
such 
section
6103(l)(7)(D)(ix), or’’; and
(ii) in clause (ii), by inserting ‘‘such
section 6103(l)(7)(D)(ix),’’ after ‘‘303(i),’’.
(4) CONFORMING AMENDMENT.—The heading of
subsection (c) of section 904 of the Stewart B. McKin-
ney Homeless Assistance Amendments Act of 1988 is
amended by striking ‘‘STATE EMPLOYMENT’’.
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(5) OPERATING
SUBSIDY
ADJUSTMENTS.—Sec-
tion 9(a) of the United States Housing Act of 1937
(42 U.S.C. 1437g(c)) is amended by adding at the
end the following:
‘‘(4) Adjustments to a public housing agency’s operat-
ing subsidy made by the Secretary under this section shall
reflect actual changes in rental income collections resulting
from the application of section 904 of the Stewart B.
McKinney Homeless Assistance Amendments Act of 1988.’’.
(b) CONFORMING INTERNAL REVENUE CODE AMEND-
MENTS.—
(1) IN GENERAL.—Subparagraph (D) of section
6103(l)(7) of the Internal Revenue Code of 1986 (26
U.S.C. 6103(l)(7)(D); relating to the disclosure of re-
turn information to Federal, State, and local agencies
administering certain programs) is amended—
(A) in clause (vii), by striking ‘‘, and’’ at
the end and inserting a semicolon;
(B) in clause (viii), by striking the period
at the end and inserting ‘‘; and’’;
(C) by inserting after clause (viii) the fol-
lowing new clause:
‘‘(ix) any housing assistance program
administered by the Department of Housing
and Urban Development that involves ini-
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tial and periodic review of an applicant’s
or participant’s income, except that return
information may be disclosed under this
paragraph only to the Secretary of Housing
and Urban Development and only with re-
spect to applicants for and participants in
such programs who have signed consent
forms under section 904(b)(3) of the Stewart
B. McKinney Homeless Assistance Amend-
ments Act of 1988.’’; and
(D) by adding at the end the following:
‘‘Clause (ix) shall not apply after September 30,
1998.’’.
(2) AMENDMENT TO THE HEADING.—The head-
ing of paragraph (7) of section 6103(l) of the Internal
Revenue Code of 1986 is amended by inserting after
‘‘1977,’’ the following: ‘‘CERTAIN
HOUSING
ASSIST-
ANCE PROGRAMS,’’.
SEC. 3004. GNMA REMIC GUARANTEE FEES.
Section 306(g)(3) of the National Housing Act (12
U.S.C. 1721(g)(3)) is amended by adding at the end the
following new subparagraph:
‘‘(E)(i) Notwithstanding subparagraphs (A) through
(D), fees charged for the guarantee of, or commitment to
guarantee, multiclass securities backed by a trust or pool
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of securities or notes guaranteed by the Association under
this subsection, and other related fees shall be charged by
the Association in an amount the Association deems appro-
priate. The Association shall take such action as may be
necessary to reasonably assure that such portion of the bene-
fit, resulting from the Association’s multiclass securities
program, as the Association determines is appropriate ac-
crues to mortgagors who execute eligible mortgages after the
date of the enactment of this subparagraph.
‘‘(ii) In its annual report, the Association shall pro-
vide a summary of each activity of the Association pertain-
ing to the Association’s multiclass securities program. Each
summary shall contain a description of the activity and
shall include—
‘‘(I) information pertaining to the size of the
transactions closed, the number of mortgages involved,
the amount of fees charged, those persons or entities
receiving payments for services provided and the
amounts of such payments; and
‘‘(II) an estimate of the portion of the benefit of
the multiclass securities program accruing to mortga-
gors as well as a description of any action taken by
the Association to ensure such accrual.
‘‘(iii) The Association shall provide for the initial im-
plementation of the program for which fees are charged
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under the first sentence of clause (i) by notice published
in the Federal Register. The notice shall be effective upon
publication and shall provide an opportunity for public
comment. Not later than 12 months after publication of the
notice, the Association shall issue regulations for such pro-
gram based on the notice, comments received, and the expe-
rience of the Association in carrying out the program dur-
ing such period.
‘‘(iv) The Association shall consult with persons or en-
tities in such manner as the Association deems appropriate
to ensure the efficient commencement and operation of the
multiclass securities program.
‘‘(v) No State or local law, and no Federal law (except
Federal law enacted expressly in limitation of this clause
after the effective date of this subparagraph) shall preclude
or limit the exercise by the Association of its power to con-
tract with persons or entities, and its rights to enforce such
contracts, for the purpose of ensuring the efficient com-
mencement and continued operation of the multiclass secu-
rities program.
‘‘(vi) Prior to the commencement of the multiclass se-
curities program, the Association shall provide to the Com-
mittee on Banking, Housing, and Urban Affairs of the Sen-
ate and the Committee on Banking, Finance and Urban
Affairs of the House of Representatives a report describing
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the Association’s design of the multiclass securities pro-
gram, including program elements that ensure the mini-
mization of risks arising from the operation of the
multiclass securities program, such as—
‘‘(I) any industry proven safeguards, including
capital standards for sponsors and provisions for in-
demnification from private parties for events that
may result in the Association’s liability under its
guaranty or commitment to guaranty; and
‘‘(II) the sufficiency of the Association’s staff re-
sources to administer the multiclass securities pro-
gram.’’.
SEC. 3005. MUTUAL MORTGAGE INSURANCE FUND PRE-
MIUMS.
To improve the actuarial soundness of the Mutual
Mortgage Insurance Fund under the National Housing Act,
the Secretary of Housing and Urban Development shall in-
crease the rate at which the Secretary earns the single pre-
mium payment collected at the time of insurance of a mort-
gage that is an obligation of such Fund (with respect to
the rate in effect on the date of the enactment of this Act).
In establishing such increased rate, the Secretary shall con-
sider any current audit findings and reserve analyses and
information regarding the expected average duration of
mortgages that are obligations of such Fund and may con-
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sider any other information that the Secretary determines
to be appropriate.
TITLE IV—COMMUNICATIONS
AND TRANSPORTATION
Subtitle A—Spectrum Allocation
and Auction
SEC. 4001. SHORT TITLE.
This subtitle may be cited as the ‘‘Emerging Tele-
communications Technologies Act of 1993’’.
SEC. 4002. FINDINGS.
The Congress finds that—
(1) the Federal Government currently reserves
for its own use, or has priority of access to, approxi-
mately 40 percent of the electromagnetic spectrum
that is assigned for use pursuant to the Communica-
tions Act of 1934;
(2) many of such frequencies are underutilized
by Federal Government licensees;
(3) the public interest requires that many of such
frequencies be utilized more efficiently by Federal
Government and non-Federal licensees;
(4) additional frequencies are assigned for serv-
ices that could be obtained more efficiently from com-
mercial providers or other vendors;
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(5) scarcity of assignable frequencies for licens-
ing by the Commission can and will—
(A) impede the development and commer-
cialization of new telecommunications products
and services;
(B) limit the capacity and efficiency of tele-
communications systems in the United States;
(C) prevent some State and local police,
fire, and emergency services from obtaining ur-
gently needed radio channels; and
(D) adversely affect the productive capacity
and international competitiveness of the United
States economy;
(6) a reassignment of these frequencies can
produce significant economic returns;
(7) a reassignment of Federal Government fre-
quencies can be accomplished without adverse impact
on amateur radio licenses that currently share alloca-
tions with Federal Government stations;
(8) current spectrum assignment procedures—
comparative hearings and lotteries—can be expensive
and time consuming, can strain the limited resources
of the Federal Communications Commission, and can
result in an inefficient distribution of spectrum and
an unjustified windfall to speculators;
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(9) competitive bidding could reduce the cost in
time and money—and increase the efficiency—of the
spectrum assignment process for certain radio serv-
ices, discourage speculative applications, encourage
the efficient use of spectrum by licensees, and fairly
compensate United States taxpayers for use of a
scarce public natural resource;
(10) competitive bidding should be structured
to—
(A) facilitate introduction of new spectrum-
based technologies and services and entry of new
companies into the telecommunications market;
(B) recognize the legitimate needs of rural
telephone companies in providing spectrum-
based, common carrier services in rural markets
in which they provide telephone exchange service
by wire;
(C) give appropriate consideration to small
businesses and minority-owned businesses that
want to participate in the competitive bidding
process;
(D) recognize the need to make reasonably
priced mobile communications services available
to businesses in rural areas;
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(E) recognize the need to ensure that ade-
quate spectrum continues to be available for pub-
lic safety services; and
(F) otherwise further the public interest;
(11) competitive bidding should apply only to
the granting of new spectrum licenses and should
not—
(A) disrupt the operations of existing spec-
trum licensees;
(B) alter existing spectrum allocation proce-
dures;
(C) apply to certain services governed by
public interest regulations;
(D) diminish the existing authority of the
Federal Communications Commission to regulate
or reclaim spectrum licenses;
(E) prevent or discourage the allocation of
spectrum to meet the current or future needs of
public safety services; or
(F) grant any right to a spectrum licensee
different from the rights awarded to licensees
who obtain their license through assignment
methods other than competitive bidding;
(12) in appropriating revenues received from
competitive bidding, priority should be given to—
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(A) funding spectrum management, plan-
ning, monitoring, and enforcement and other ac-
tivities of the Federal Communications Commis-
sion, the National Telecommunications and In-
formation Administration, and other Federal
agencies aimed at increasing the efficiency and
effectiveness of spectrum use, facilitating the in-
troduction of new spectrum-based technologies
and services, and enhancing the international
competitiveness of the United States and the
ability of American companies to enter new
markets; and
(B) extending the reach of public radio and
television to underserved areas of the United
States and underserved groups of Americans and
enhancing the ability of public telecommuni-
cations to deliver needed original, high-quality
public service programming; and
(13) because commercial mobile services require
a Federal license and the Federal Government is at-
tempting to promote competition for such services,
and because providers of such services do not exercise
market power vis-a-vis telephone exchange service car-
riers and State regulation can be a barrier to the de-
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velopment of competition in this market, uniform na-
tional policy is necessary and in the public interest.
SEC. 4003. NATIONAL SPECTRUM PLANNING.
(a) PLANNING ACTIVITIES.—The Assistant Secretary
of Commerce for Communications and Information and the
Chairman of the Commission shall meet, at least bian-
nually, to conduct joint spectrum planning with respect to
the following issues:
(1) the future spectrum requirements for public
and private uses, including State and local govern-
ment public safety agencies;
(2) the spectrum allocation actions necessary to
accommodate those uses; and
(3) actions necessary to promote the efficient use
of the spectrum, including spectrum management
techniques to promote increased shared use of the
spectrum that does not cause harmful interference, as
a means of increasing commercial access.
(b) REPORT ON PLANNING ACTIVITIES.—Not later
than 24 months after the date of enactment of this Act, the
Assistant Secretary of Commerce for Communications and
Information and the Chairman of the Commission shall
submit a joint report to the Committee on Energy and Com-
merce of the House of Representatives and the Committee
on Commerce, Science, and Transportation of the Senate
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on the joint spectrum planning activities conducted under
subsection (a) and recommendations for action developed
pursuant to such activities. The report shall contain rec-
ommendations for the reform of the process of allocating
spectrum between Federal uses and non-Federal uses.
(c) PROCEDURES TO ENSURE OPPORTUNITY FOR MI-
NORITY-OWNED BUSINESSES AND SMALL BUSINESSES.—
The Commission shall develop procedures to ensure that mi-
nority-owned businesses and small businesses are given the
opportunity to provide spectrum-based services. In develop-
ing such procedures, the Commission shall consider the use
of tax certificates and bidding preferences.
(d) STUDY ON SPECTRUM NEEDS OF PUBLIC SAFETY
AGENCIES.—The Commission shall complete and submit to
Congress, not later than 18 months after the date of enact-
ment of this Act, a study of current and future spectrum
needs of State and local government public safety agencies
through the year 2010, and a specific plan to satisfy those
spectrum needs.
SEC. 4004. RECOMMENDATIONS FOR REALLOCATION OF
CERTAIN FREQUENCIES.
(a) IDENTIFICATION REQUIRED.—For purposes of
reallocation, the Secretary shall identify frequencies that—
(1) are allocated on a primary basis for Federal
Government use;
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HR 2264 EAS
(2) are not required for the present or identifi-
able future needs of the Federal Government;
(3) can feasibly be made available, as of the date
of such identification or at any time during the next
15 years, for use under the Act (other than for Fed-
eral Government stations under section 305 of the
Act) without resulting in costs to the Federal Govern-
ment, or loss of services or benefits to the public, that
are excessive in relation to the benefits to the public
that may be provided by non-Federal licensees; and
(4) are most likely to have the greatest potential
for productive uses and public benefits under the Act
if allocated for commercial uses.
(b) 
MINIMUM
AMOUNT
OF
SPECTRUM
REC-
OMMENDED.—
(1) OVERALL RECOMMENDATION.—In accordance
with the provisions of this section, the Secretary shall
recommend for reallocation, for use other than by
Federal Government stations under section 305 of the
Act (47 U.S.C. 305), at least 200 megahertz of fre-
quencies identified under subsection (a) that are lo-
cated below 5 gigahertz. At least one-half of such fre-
quencies shall be located below 3 gigahertz.
(2) MIXED USES PERMITTED TO BE COUNTED.—
Among the frequencies recommended under this sec-
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tion for reallocation, the Secretary may include fre-
quencies and frequency bands that are to be partially
retained for use by Federal Government stations but
that are also recommended to be reallocated under the
Act for use by non-Federal stations, except that—
(A) such mixed-use frequencies and fre-
quency bands may not count toward more than
one-half of the 200 megahertz minimum required
by paragraph (1);
(B) such mixed-use frequencies and fre-
quency bands may not be so counted unless the
assignments of the frequencies to Federal Govern-
ment stations under section 305 of the Act (47
U.S.C. 305) are limited by geographic area, by
time, or by other means so as to guarantee that
the potential use to be made by such Federal
Government stations is substantially less (as
measured by geographic area, time, or otherwise)
than the potential use to be made by non-Federal
stations; and
(C) the operational sharing permitted under
this paragraph shall be subject to coordination
procedures that the Commission and the Sec-
retary shall jointly establish and implement to
ensure against harmful interference.
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(c) CONSIDERATION OF CRITERIA FOR IDENTIFICA-
TION.—
(1) NEEDS OF THE FEDERAL GOVERNMENT.—In
determining whether a frequency meets the criteria
specified in subsection (a)(2), the Secretary shall—
(A) consider whether the frequency is used
to provide a communications service that is or
could be made available from a commercial car-
rier or other vendor;
(B) seek to promote—
(i) the maximum practicable reliance
on commercially available substitutes;
(ii) the sharing of frequencies (as per-
mitted under subsection (b)(2));
(iii) the development and use of new
communications technologies; and
(iv) the use of nonradiating commu-
nications systems where practicable; and
(C) seek to avoid—
(i) serious degradation of Federal Gov-
ernment services and operations;
(ii) excessive costs to the Federal Gov-
ernment and users of Federal Government
services; and
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(iii) excessive disruption of existing use
of Federal Government frequencies by ama-
teur radio licensees.
(2) FEASIBILITY
OF
USE.—In determining
whether a frequency meets the criteria specified in
subsection (a)(3), the Secretary shall—
(A) assume that the frequency will be as-
signed by the Commission under section 303 of
the Act (47 U.S.C. 303) within 15 years;
(B) assume reasonable rates of scientific
progress and growth of demand for telecommuni-
cations services;
(C) seek to include frequencies which can be
used to stimulate the development of new tech-
nologies; and
(D) consider the immediate and recurring
costs to reestablish services displaced by the
reallocation of spectrum.
(3) COMMERCIAL USE.—In determining whether
a frequency meets the criteria specified in subsection
(a)(4), the Secretary shall consider—
(A) the extent to which equipment is avail-
able that is capable of utilizing such frequency;
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(B) the proximity of frequencies that are al-
ready assigned for commercial or other non-Fed-
eral use;
(C) the extent to which, in general, commer-
cial users could share the frequency with ama-
teur radio licensees; and
(D) the activities of foreign governments in
making frequencies available for experimentation
or commercial assignments in order to support
their domestic manufacturers of equipment.
(4) OTHER USES.—
(A) APPLICABILITY OF CRITERIA.—The cri-
teria specified by subsection (a) shall be deemed
not to be met for any purpose under this subtitle
with regard to any frequency assignment to, or
any frequency assignment used by, a Federal
power agency for the purpose of withdrawing
that assignment.
(B) MIXED
USE
ELIGIBILITY.—The fre-
quencies assigned to any Federal power agency
may only be eligible for mixed use under sub-
section (b)(2) in geographically separate areas,
but in those cases where a frequency is to be
shared by an affected Federal power agency and
a non-Federal user, such use by the non-Federal
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user shall not cause harmful interference to the
affected Federal power agency or adversely affect
the reliability of its power system.
(C) DEFINITION.—As used in this para-
graph, the term ‘‘Federal power agency’’ means
the Tennessee Valley Authority, the Bonneville
Power Administration, the Western Area Power
Administration, or the Southwestern Power Ad-
ministration.
(d) 
PROCEDURE
FOR
IDENTIFICATION
OF
REALLOCABLE BANDS OF FREQUENCIES.—
(1) REPORT IDENTIFYING 30 MEGAHERTZ FOR
IMMEDIATE REALLOCATION.—Within 6 months after
the date of enactment of this Act, the Secretary shall
prepare and submit to the President and the Congress
a report that recommends for immediate reallocation
no less than 30 megahertz of frequencies identified
under subsection (a). None of the frequencies covered
by such report may be allocated for mixed use as de-
scribed in subsection (b)(2). Not less than one-half of
such frequencies shall be located below 3 gigahertz.
(2) 
PRELIMINARY
REPORT
ON
OTHER
REALLOCABLE FREQUENCIES.—Within 6 months after
the date of enactment of this Act, the Secretary shall
prepare, make publicly available, and submit to the
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President and the Congress a preliminary report that
recommends for reallocation at least 170 megahertz of
frequencies identified under subsection (a), other than
those recommended for immediate reallocation under
paragraph (1).
(3) PUBLIC COMMENT; CHANGES TO REPORT.—
The Secretary shall receive public comment on the
preliminary report required by paragraph (2) and
shall, based upon the comments, make such changes to
the report as are warranted to meet the objectives of
this section.
(4) DIRECT DISCUSSIONS.—The Secretary shall
encourage and provide opportunity for direct discus-
sions among commercial representatives and Federal
Government users of the spectrum to aid the Sec-
retary in determining which frequencies to rec-
ommend for reallocation. The Secretary shall provide
notice to the public of any such discussions, including
the name or names of any businesses or other persons
represented in such discussions, and shall provide the
public with an opportunity to comment on the results
of any such negotiations prior to the submission of
the final report required by paragraph (5).
(5) FINAL
REPORT
ON
OTHER
REALLOCABLE
FREQUENCIES.—Within 18 months after the date of
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enactment of this Act, the Secretary shall prepare and
submit to the President and the Congress a final re-
port that recommends the reallocation of at least 170
megahertz of frequencies as described in paragraph
(2). Not less than one-half of such frequencies shall be
located below 3 gigahertz.
(6) LIMITATION ON REALLOCATION.—None of the
frequencies recommended for reallocation in the re-
ports required by this subsection shall have been rec-
ommended, prior to the date of enactment of this Act,
for reallocation to non-Federal use by international
agreement.
(e) TIMETABLE
FOR
REALLOCATION
AND
LIMITA-
TION.—The Secretary shall, as part of the reports required
by paragraphs (1) and (2) of subsection (d), include a time-
table that recommends dates by which the President shall
withdraw or limit assignments of the frequencies specified
in the reports. In setting the recommended effectived dates,
the Secretary shall—
(1) consider the need to reallocate frequencies as
early as possible, taking into account the require-
ments of section 406;
(2) consider the useful remaining life of equip-
ment that has been purchased or contracted for pur-
chase to operate on identified frequencies;
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(3) consider the need to coordinate frequency use
with other nations; and
(4) take into account the relationship between the
costs to the Federal Government of changing to dif-
ferent frequencies and the benefits that may be ob-
tained from commercial and other non-Federal uses of
the reassigned frequencies.
SEC. 4005. WITHDRAWAL OR LIMITATION OF ASSIGNMENT
TO FEDERAL GOVERNMENT STATIONS.
(a) IN GENERAL.—The President shall—
(1) within 12 months after receipt of the report
required by section 404(d)(1), withdraw the assign-
ment to a Federal Government station of any fre-
quency in the frequencies recommended by that report
for immediate reallocation;
(2) by the effective date recommended by the Sec-
retary under section 404(e) (except as provided in
subsection (b)(4) of this section), withdraw or limit
the assignment to a Federal Government station of
any frequency which the report required by section
404(d)(3) recommends be reallocated or made avail-
able for mixed use on such recommended effective
date;
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(3) assign or reassign other frequencies to Fed-
eral Government stations as necessary to adjust to
such withdrawal or limitation of assignments; and
(4) transmit a notice and description to the
Commission and each House of Congress of the ac-
tions taken under this subsection.
(b) EXCEPTIONS.—
(1) AUTHORITY TO SUBSTITUTE.—If the Presi-
dent determines that a circumstance described in
paragraph (2) exists, the President—
(A) may substitute an alternative frequency
for the frequency that is subject to such deter-
mination and withdraw (or limit) the assign-
ment of that alternative frequency in the manner
required by subsection (a); and
(B) shall submit a statement of the reasons
for taking the action described in subparagraph
(A) to the Committee on Energy and Commerce
of the House of Representatives and the Commit-
tee on Commerce, Science, and Transportation of
the Senate.
(2) GROUNDS FOR SUBSTITUTION.—Each of the
following subparagraphs describes a circumstance re-
ferred to in paragraph (1):
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(A) The reassignment would seriously jeop-
ardize the national defense interests of the Unit-
ed States.
(B) The frequency proposed for reassign-
ment is uniquely suited to meeting important
governmental needs.
(C) The reassignment would seriously jeop-
ardize public health or safety.
(D) The reassignment will result in costs to
the Federal Government that are excessive in re-
lation to the benefits that may be obtained from
commercial or other non-Federal uses of the reas-
signed frequency.
(E) The reassignment will disrupt the exist-
ing use of a Federal Government band of fre-
quencies by amateur radio licensees.
(3) 
CRITERIA
FOR
SUBSTITUTED
FRE-
QUENCIES.—For purposes of paragraph (1), a fre-
quency may not be substituted for a frequency identi-
fied and recommended under section 404 for
reallocation, unless the substituted frequency also
meets each of the criteria specified by section 404(a).
(4) DELAYS IN IMPLEMENTATION.—If the Presi-
dent determines that any action cannot be completed
by the effective date recommended by the Secretary
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pursuant to section 404(e), or that such an action by
such date would result in a frequency being unused
as a consequence of the Commission’s plan under sec-
tion 404(b), the President may—
(A) withdraw or limit the assignment to
Federal Government stations on a later date that
is consistent with such plan, except that the
President shall notify each Committee specified
in paragraph (1)(B) and the Commission of the
reason that withdrawal or limitation at a later
date is required; or
(B) substitute alternative frequencies pursu-
ant to this subsection.
(c) COSTS OF WITHDRAWING FREQUENCIES ASSIGNED
TO THE FEDERAL GOVERNMENT.—
(1) REIMBURSEMENT AUTHORIZED.—Any Fed-
eral agency, or non-Federal entity operating on behalf
of a Federal agency, whose operation is displaced
from a frequency pursuant to this section may be re-
imbursed, from revenues received pursuant to section
408, not more than the incremental costs such agency
or entity incurs (in such amounts as are provided in
advance in an appropriations Act) that are directly
attributable to the displacement from the frequency.
The estimates of these costs shall be prepared by the
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affected agency, in consultation with the Department
of Commerce.
(2) AUTHORIZATION
OF
APPROPRIATIONS.—
There are authorized to be appropriated to the af-
fected Federal agencies such sums as may be nec-
essary to carry out the purposes of this subsection.
(d) EXISTING AUTHORITY RETAINED.—
(1) ADDITIONAL
REALLOCATION.—Nothing in
this subtitle prevents or limits additional reallocation
of spectrum from the Federal Government to the com-
mercial or other sectors.
(2) IMPLEMENTATION
OF
NEW
TECHNOLOGIES
AND SERVICES.—Notwithstanding any other provision
of this subtitle—
(A) the Secretary may at any time allow
frequencies allocated on a primary basis for Fed-
eral Government use to be used by non-Federal
licensees on a mixed-use basis for the purpose of
facilitating the prompt implementation of new
technologies or services; and
(B) the Commission shall expedite and give
priority to the allocation of any frequencies iden-
tified pursuant to subparagraph (A), and any
associated licensing.
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SEC. 
4006. 
ALLOCATION 
AND 
ASSIGNMENT 
OF 
FRE-
QUENCIES BY THE COMMISSION.
(a) ALLOCATION AND ASSIGNMENT OF IMMEDIATELY
AVAILABLE FREQUENCIES.—With respect to the frequencies
made available for immediate reallocation pursuant to sec-
tion 405(a)(1), the Commission, not later than 18 months
after the date of enactment of this Act, shall issue rules to
allocate such frequencies and shall propose rules to assign
such frequencies.
(b) ALLOCATION
AND ASSIGNMENT
OF REMAINING
AVAILABLE FREQUENCIES.—With respect to the frequencies
made available for reallocation pursuant to section
405(a)(2), the Commission shall, not later than 1 year after
receipt of the final report identified in section 404(d)(4),
prepare, in consultation with the Assistant Secretary of
Commerce for Communications and Information, submit to
the President and the Congress, and implement, a plan for
the allocation and assignment under the Act of such fre-
quencies. Such plan shall—
(1) not propose the immediate allocation and as-
signment of all such frequencies but, taking into ac-
count the timetable recommended by the Secretary
pursuant to section 404(e), shall propose—
(A) gradually to allocate and assign the fre-
quencies remaining, after making the reservation
required by subparagraph (B), over the course of
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10 years beginning on the date of submission of
such plan; and
(B) to reserve a significant portion of such
frequencies for distribution beginning after the
end of such 10-year period;
(2) contain appropriate provisions to ensure the
availability of frequencies for (A) new technologies
and services in accordance with the policies of section
7 of the Act (47 U.S.C. 157) and (B) the safety of life
and property in accordance with the policies of sec-
tion 1 of the Act (47 U.S.C. 151);
(3) address (A) the feasibility of reallocating por-
tions of the spectrum from current commercial and
other non-Federal uses to provide for more efficient
use of the spectrum, and (B) innovation and market-
place developments that may affect the relative effi-
ciencies of different spectrum allocations;
(4) not prevent the Commission from allocating
frequencies, and assigning licenses to use frequencies,
not included in the plan; and
(5) not preclude the Commission from making
changes to the plan in future proceedings.
(c) AMENDMENT TO THE ACT.—Section 303 of the Act
(47 U.S.C. 303) is amended by adding at the end the follow-
ing new subsection:
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‘‘(v) Have authority to assign licenses to use the fre-
quencies reallocated from United States Government use to
non-United States Government use pursuant to the Emerg-
ing Telecommunications Technologies Act of 1993; except
that any such assignment shall be made expressly subject
to the right of the President to reclaim such frequencies
under section 7 of such Act.’’.
SEC. 4007. AUTHORITY TO RECLAIM REASSIGNED FRE-
QUENCIES.
(a) AUTHORITY OF PRESIDENT.—Subsequent to the
withdrawal of assignment to Federal Government stations
pursuant to section 405, the President may reclaim reas-
signed frequencies for reassignment to Federal Government
stations in accordance with this section.
(b) PROCEDURE FOR RECLAIMING FREQUENCIES.—
(1) UNALLOCATED
FREQUENCIES.—If the fre-
quencies to be reclaimed have not been allocated or as-
signed by the Commission pursuant to the Act, the
President shall follow the procedures for substitution
of frequencies established by section 405(b) of this sub-
title.
(2) ALLOCATED
FREQUENCIES.—If the fre-
quencies to be reclaimed have been allocated or as-
signed by the Commission, the President shall follow
the procedures for substitution of frequencies estab-
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lished by section 405(b) of this subtitle, except that the
notification required by section 405(b)(1)(B) shall in-
clude—
(A) a timetable to accommodate an orderly
transition for displaced licensees to obtain new
frequencies and equipment necessary for its utili-
zation; and
(B) an estimate of the cost of displacing
spectrum uses licensed by the Commission.
(c) COSTS OF RECLAIMING FREQUENCIES; APPROPRIA-
TIONS AUTHORIZED.—The Federal Government shall bear
all costs of reclaiming frequencies pursuant to this section,
including the cost of equipment which is rendered unusable,
the cost of relocating operations to a different frequency,
and any other costs that are directly attributable to the re-
claiming of the frequency pursuant to this section. There
are authorized to be appropriated such sums as may be nec-
essary to carry out the purposes of this section.
(d) 
EFFECTIVE
DATE
OF
RECLAIMED
FRE-
QUENCIES.—The Commission shall not withdraw licenses
for any reclaimed frequencies until the end of the fiscal year
following the fiscal year in which the President’s notifica-
tion is received.
(e) EFFECT ON OTHER LAW.—Nothing in this section
shall be construed to limit or otherwise affect the authority
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of the President under section 706 of the Act (47 U.S.C.
606).
SEC. 4008. COMPETITIVE BIDDING.
(a) COMPETITIVE BIDDING.—
(1) IN GENERAL.—
(A) FIVE-YEAR AUTHORIZATION.—The Com-
mission shall, during fiscal years 1994 through
1998, use the competitive bidding process author-
ized under the amendment made by subsection
(b) to grant all radio spectrum licenses for which
two or more mutually exclusive applications
have been filed, including the 200 megahertz of
spectrum made available to the Commission
under this subtitle, and including the licenses is-
sued for a personal communications service es-
tablished pursuant to the proceeding entitled
‘‘Amendment to the Commission’s Rules to Es-
tablish New Personal Communications Services’’,
or any successor proceeding, except for those li-
censes identified in subparagraphs (A) through
(E) of section 309(j)(4) of the Act and those li-
censes that the Commission determines should in
the public interest be issued by comparative
hearing under section 309(a) through (f) of the
Act. To the extent possible, and consistent with
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the purposes of this subtitle, the Commission
shall seek to ensure that revenues received pursu-
ant to the competitive bidding process are re-
ceived before the end of fiscal year 1998.
(B) EXPIRATION OF REQUIREMENTS.—The
requirements of subparagraph (A) shall expire
either—
(i) upon a determination by the Sec-
retary of the Treasury that competitive bid-
ding has resulted in or is reasonably ex-
pected 
to 
result 
in 
the 
receipt 
of
$7,200,000,000 by the end of fiscal year
1998, or
(ii) at the end of fiscal year 1998,
whichever is earlier.
(C) REPORT
TO
PRESIDENT
AND
CON-
GRESS.—The Commission shall prepare, in con-
sultation with the Assistant Secretary of Com-
merce for Communications and Information,
and submit to the President and the Congress,
not later than March 31, 1997, and March 31,
1999, reports on the use of competitive bidding
under subparagraph (A). Such reports shall ex-
amine, in addition to any other matters deemed
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appropriate by the Commission, whether and to
what extent—
(i) competitive bidding significantly
improved the efficiency and effectiveness of
the process for granting radio spectrum
licenses;
(ii) competitive bidding facilitated the
introduction of new spectrum-based tech-
nologies and the entry of new companies
into the telecommunications market;
(iii) the needs of rural spectrum users
were adequately addressed in the competi-
tive bidding process;
(iv) small businesses and minority-
owned businesses were able to participate
successfully in the competitive bidding proc-
ess; and
(v) statutory changes are needed to im-
prove the competitive bidding process.
(2) RETENTION
OF
REVENUES.—Notwithstand-
ing paragraph (6) of section 309(j) of the Act, as
added by this subtitle, the salaries and expenses ac-
count of the Commission shall retain as an offsetting
collection such sums as may be necessary from the re-
ceipts received pursuant to such section for the costs
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‘‘(B)(i) Except as provided in subparagraph (D), the
Commission shall either grant a rural program license to
the qualified common carrier providing telephone exchange
service in the area covered by such license, or grant a license
to a consortium of such qualified carriers.
‘‘(ii) No qualified common carrier that receives a rural
program license shall be eligible to—
‘‘(I) receive any other license to provide the same
service in such area; or
‘‘(II) own any equity interest in, become a credi-
tor of, or otherwise become affiliated with any entity
that holds a license to provide the same service in
such area.
‘‘(iii) Any qualified common carrier that receives a
rural program license shall (I) provide to all other licensees
providing the same service in such area the same quality
of access to its wire network that it provides itself, and (II)
shall interconnect its wireless service with the wireless serv-
ice provided by another licensee providing the same service
on the same frequency in a different geographic area. Such
other licensee shall provide an equivalent interconnection
with the wireless service of such rural program licensee.
‘‘(iv) The Commission may establish other rules or
conditions for the award of a rural program license, consist-
ent with the intent of this paragraph.