H. R. 2646—114
‘‘(2) METHOD OF DETERMINATION.—The amounts payable
to owners or operators in the form of rental payments under
contracts entered into under this subchapter may be determined
through—
‘‘(A) the submission of bids for such contracts by owners
and operators in such manner as the Secretary may pre-
scribe; or
‘‘(B) such other means as the Secretary determines
are appropriate.
‘‘(3) ACCEPTANCE OF CONTRACT OFFERS.—In determining
the acceptability of contract offers, the Secretary may—
‘‘(A) take into consideration the extent to which enroll-
ment of the land that is the subject of the contract offer
would improve soil resources, water quality, wildlife
habitat, or provide other environmental benefits; and
‘‘(B) establish different criteria in various States and
regions of the United States based on the extent to which
water quality or wildlife habitat may be improved or ero-
sion may be abated.
‘‘(4) HARDWOOD
TREE
ACREAGE.—In the case of acreage
enrolled in the conservation reserve established under this
subchapter that is to be devoted to hardwood trees, the Sec-
retary may consider bids for contracts under this subsection
on a continuous basis.
‘‘(d) CASH OR IN-KIND PAYMENTS.—
‘‘(1) IN GENERAL.—Except as otherwise provided in this
section, payments under this subchapter—
‘‘(A) shall be made in cash or in commodities in such
amount and on such time schedule as is agreed on and
specified in the contract; and
‘‘(B) may be made in advance of determination of
performance.
‘‘(2) METHOD OF PROVIDING IN-KIND PAYMENTS.—If the pay-
ment to an owner or operator is made with in-kind commodities,
the payment shall be made by the Commodity Credit
Corporation—
‘‘(A) by delivery of the commodity involved to the owner
or operator at a warehouse or other similar facility located
in the county in which the highly erodible cropland is
located or at such other location as is agreed to by the
Secretary and the owner or operator;
‘‘(B) by the transfer of negotiable warehouse receipts;
or
‘‘(C) by such other method, including the sale of the
commodity in commercial markets, as is determined by
the Secretary to be appropriate to enable the owner or
operator to receive efficient and expeditious possession of
the commodity.
‘‘(3) CASH PAYMENTS.—
‘‘(A) COMMODITY
CREDIT
CORPORATION
STOCKS.—If
stocks of a commodity acquired by the Commodity Credit
Corporation are not readily available to make full payment
in kind to the owner or operator, the Secretary may sub-
stitute full or partial payment in cash for payment in
kind.
‘‘(B) SPECIAL
CONSERVATION
RESERVE
ENHANCEMENT
PROGRAM.—Payments to an owner or operator under a
H. R. 2646—115
special 
conservation 
reserve 
enhancement 
program
described in subsection (f)(4) shall be in the form of cash
only.
‘‘(e) PAYMENTS ON DEATH, DISABILITY, OR SUCCESSION.—If an
owner or operator that is entitled to a payment under a contract
entered into under this subchapter dies, becomes incompetent, is
otherwise unable to receive the payment, or is succeeded by another
person that renders or completes the required performance, the
Secretary shall make the payment, in accordance with regulations
prescribed by the Secretary and without regard to any other provi-
sion of law, in such manner as the Secretary determines is fair
and reasonable in light of all of the circumstances.
‘‘(f) PAYMENT LIMITATION FOR RENTAL PAYMENTS.—
‘‘(1) IN GENERAL.—The total amount of rental payments,
including rental payments made in the form of in-kind commod-
ities, made to a person under this subchapter for any fiscal
year may not exceed $50,000.
‘‘(2) REGULATIONS.—
‘‘(A) IN
GENERAL.—The Secretary shall promulgate
regulations—
‘‘(i) defining the term ‘person’ as used in this sub-
section; and
‘‘(ii) providing such terms and conditions as the
Secretary determines necessary to ensure a fair and
reasonable application of the limitation established by
this subsection.
‘‘(B) CORPORATIONS AND STOCKHOLDERS.—The regula-
tions promulgated by the Secretary on December 18, 1970,
under section 101 of the Agricultural Act of 1970 (7 U.S.C.
1307), shall be used to determine whether corporations
and their stockholders may be considered as separate per-
sons under this subsection.
‘‘(3) OTHER PAYMENTS.—Rental payments received by an
owner or operator shall be in addition to, and not affect, the
total amount of payments that the owner or operator is other-
wise eligible to receive under the Farm Security and Rural
Investment Act of 2002.
‘‘(4) SPECIAL CONSERVATION RESERVE ENHANCEMENT PRO-
GRAM.—
‘‘(A) IN GENERAL.—The provisions of this subsection
that limit payments to any person, and section 1305(d)
of the Agricultural Reconciliation Act of 1987 (7 U.S.C.
1308 note; Public Law 100–203), shall not be applicable
to payments received by a State, political subdivision, or
agency thereof in connection with agreements entered into
under a special conservation reserve enhancement program
carried out by that entity that has been approved by the
Secretary.
‘‘(B) AGREEMENTS.—The Secretary may enter into such
agreements for payments to States (including political sub-
divisions and agencies of States) that the Secretary deter-
mines will advance the purposes of this subchapter.
‘‘(g) OTHER STATE OR LOCAL ASSISTANCE.—In addition to any
payment under this subchapter, an owner or operator may receive
cost share assistance, rental payments, or tax benefits from a State
or subdivision thereof for enrolling land in the conservation reserve
program.
H. R. 2646—116
‘‘SEC. 1235. CONTRACTS.
‘‘(a) OWNERSHIP OR OPERATION REQUIREMENTS.—
‘‘(1) IN GENERAL.—Except as provided in paragraph (2),
no contract shall be entered into under this subchapter con-
cerning land with respect to which the ownership has changed
in the 1-year period preceding the first year of the contract
period unless—
‘‘(A) the new ownership was acquired by will or succes-
sion as a result of the death of the previous owner;
‘‘(B) the new ownership was acquired before January
1, 1985;
‘‘(C) the Secretary determines that the land was
acquired under circumstances that give adequate assurance
that the land was not acquired for the purpose of placing
the land in the program established by this subchapter;
or
‘‘(D) the ownership change occurred due to foreclosure
on the land and the owner of the land immediately before
the foreclosure exercises a right of redemption from the
mortgage holder in accordance with State law.
‘‘(2) EXCEPTIONS.—Paragraph (1) shall not—
‘‘(A) prohibit the continuation of an agreement by a
new owner after an agreement has been entered into under
this subchapter; or
‘‘(B) require a person to own the land as a condition
of eligibility for entering into the contract if the person—
‘‘(i) has operated the land to be covered by a con-
tract under this section for at least 1 year preceding
the date of the contract or since January 1, 1985,
whichever is later; and
‘‘(ii) controls the land for the contract period.
‘‘(b) SALES OR TRANSFERS.—If, during the term of a contract
entered into under this subchapter, an owner or operator of land
subject to the contract sells or otherwise transfers the ownership
or right of occupancy of the land, the new owner or operator of
the land may—
‘‘(1) continue the contract under the same terms or condi-
tions;
‘‘(2) enter into a new contract in accordance with this
subchapter; or
‘‘(3) elect not to participate in the program established
by this subchapter.
‘‘(c) MODIFICATIONS.—
‘‘(1) IN GENERAL.—The Secretary may modify a contract
entered into with an owner or operator under this subchapter
if—
‘‘(A) the owner or operator agrees to the modification;
and
‘‘(B) the Secretary determines that the modification
is desirable—
‘‘(i) to carry out this subchapter;
‘‘(ii) to facilitate the practical administration of
this subchapter; or
‘‘(iii) to achieve such other goals as the Secretary
determines are appropriate, consistent with this sub-
chapter.
H. R. 2646—117
‘‘(2) PRODUCTION
OF
AGRICULTURAL
COMMODITIES.—The
Secretary may modify or waive a term or condition of a contract
entered into under this subchapter in order to permit all or
part of the land subject to such contract to be devoted to
the production of an agricultural commodity during a crop
year, subject to such conditions as the Secretary determines
are appropriate.
‘‘(d) TERMINATION.—
‘‘(1) IN GENERAL.—The Secretary may terminate a contract
entered into with an owner or operator under this subchapter
if—
‘‘(A) the owner or operator agrees to the termination;
and
‘‘(B) the Secretary determines that the termination
would be in the public interest.
‘‘(2) NOTICE TO CONGRESSIONAL COMMITTEES.—At least 90
days before taking any action to terminate under paragraph
(1) all conservation reserve contracts entered into under this
subchapter, the Secretary shall provide to the Committee on
Agriculture of the House of Representatives and the Committee
on Agriculture, Nutrition, and Forestry of the Senate written
notice of the action.
‘‘(e) EARLY TERMINATION BY OWNER OR OPERATOR.—
‘‘(1) EARLY TERMINATION.—
‘‘(A) IN GENERAL.—The Secretary shall allow a partici-
pant that entered into a contract under this subchapter
before January 1, 1995, to terminate the contract at any
time if the contract has been in effect for at least 5 years.
‘‘(B) LIABILITY FOR CONTRACT VIOLATION.—The termi-
nation shall not relieve the participant of liability for a
contract violation occurring before the date of the termi-
nation.
‘‘(C) NOTICE TO SECRETARY.—The participant shall pro-
vide the Secretary with reasonable notice of the desire
of the participant to terminate the contract.
‘‘(2) CERTAIN LAND EXCEPTED.—The following land shall
not be subject to an early termination of contract under this
subsection:
‘‘(A) Filterstrips, waterways, strips adjacent to riparian
areas, windbreaks, and shelterbelts.
‘‘(B) Land with an erodibility index of more than 15.
‘‘(C) Other land of high environmental value (including
wetland), as determined by the Secretary.
‘‘(3) EFFECTIVE
DATE.—The contract termination shall
become effective 60 days after the date on which the owner
or operator submits the notice required under paragraph (1)(C).
‘‘(4) PRORATED
RENTAL
PAYMENT.—If a contract entered
into under this subchapter is terminated under this subsection
before the end of the fiscal year for which a rental payment
is due, the Secretary shall provide a prorated rental payment
covering the portion of the fiscal year during which the contract
was in effect.
‘‘(5) RENEWED ENROLLMENT.—The termination of a contract
entered into under this subchapter shall not affect the ability
of the owner or operator that requested the termination to
submit a subsequent bid to enroll the land that was subject
to the contract into the conservation reserve.
H. R. 2646—118
‘‘(6) CONSERVATION REQUIREMENTS.—If land that was sub-
ject to a contract is returned to production of an agricultural
commodity, the conservation requirements under subtitles B
and C shall apply to the use of the land to the extent that
the requirements are similar to those requirements imposed
on other similar land in the area, except that the requirements
may not be more onerous than the requirements imposed on
other land.
‘‘SEC. 1235A. CONVERSION OF LAND SUBJECT TO CONTRACT TO OTHER
CONSERVING USES.
‘‘(a) CONVERSION TO TREES.—
‘‘(1) IN GENERAL.—The Secretary shall permit an owner
or operator that has entered into a contract under this sub-
chapter that is in effect on November 28, 1990, to convert
areas of highly erodible cropland that are subject to the con-
tract, and that are devoted to vegetative cover, from that use
to hardwood trees, windbreaks, shelterbelts, or wildlife cor-
ridors.
‘‘(2) TERMS.—
‘‘(A) EXTENSION OF CONTRACT.—With respect to a con-
tract that is modified under this section that provides
for 
the 
planting 
of 
hardwood 
trees, 
windbreaks,
shelterbelts, or wildlife corridors, if the original term of
the contract was less than 15 years, the owner or operator
may extend the contract to a term of not to exceed 15
years.
‘‘(B) COST SHARE ASSISTANCE.—The Secretary shall pay
50 percent of the cost of establishing conservation measures
and practices authorized under this subsection for which
the Secretary determines the cost sharing is appropriate
and in the public interest.
‘‘(b) CONVERSION
TO WETLAND.—The Secretary shall permit
an owner or operator that has entered into a contract under this
subchapter that is in effect on November 28, 1990, to restore areas
of highly erodible cropland that are devoted to vegetative cover
under the contract to wetland if—
‘‘(1) the areas are prior converted wetland;
‘‘(2) the owner or operator of the areas enters into an
agreement to provide the Secretary with a long-term or perma-
nent easement under subchapter C covering the areas;
‘‘(3) there is a high probability that the prior converted
area can be successfully restored to wetland status; and
‘‘(4) the restoration of the areas otherwise meets the
requirements of subchapter C.
‘‘(c) LIMITATION.—The Secretary shall not incur, through a
conversion under this section, any additional expense on the acres,
including the expense involved in the original establishment of
the vegetative cover, that would result in cost share for costs
under this section in excess of the costs that would have been
subject to cost share for the new practice had that practice been
the original practice.
‘‘(d) CONDITION
OF CONTRACT.—An owner or operator shall
as a condition of entering into a contract under subsection (a)
participate in the Forest Stewardship Program established under
section 5 of the Cooperative Forestry Assistance Act of 1978 (16
U.S.C. 2103a).’’.
H. R. 2646—119
(b) STUDY ON ECONOMIC EFFECTS.—
(1) IN GENERAL.—Not later than 18 months after the date
of enactment of this Act, the Secretary of Agriculture shall
submit to the Committee on Agriculture of the House of Rep-
resentatives and the Committee on Agriculture, Nutrition, and
Forestry of the Senate a report that describes the economic
and social effects on rural communities resulting from the
conservation reserve program established under subchapter B
of chapter 1 of subtitle D of title XII of the Food Security
Act of 1985 (16 U.S.C. 3831 et seq.).
(2) COMPONENTS.—The study under paragraph (1) shall
include analyses of—
(A) the impact that enrollments in the conservation
reserve program have on rural businesses, civic organiza-
tions, and community services (such as schools, public
safety, and infrastructure), particularly in communities
with a large percentage of whole farm enrollments;
(B) the effect that those enrollments have on rural
population and beginning farmers (including a description
of any connection between the rate of enrollment and the
incidence of absentee ownership);
(C)(i) the manner in which differential per acre pay-
ment rates potentially impact the types of land (by produc-
tivity) enrolled;
(ii) changes to the per acre payment rates that may
affect that impact; and
(iii) the manner in which differential per acre payment
rates could facilitate retention of productive agricultural
land in agriculture; and
(D) the effect of enrollment on opportunities for rec-
reational activities (including hunting and fishing).
Subtitle C—Wetlands Reserve Program
SEC. 2201. REAUTHORIZATION.
Section 1237(c) of the Food Security Act of 1985 (16 U.S.C.
3837(c)) is amended by striking ‘‘2002’’ and inserting ‘‘2007’’.
SEC. 2202. ENROLLMENT.
Section 1237 of the Food Security Act of 1985 (16 U.S.C. 3837)
is amended—
(1) by striking subsection (b) and inserting the following:
‘‘(b) ENROLLMENT CONDITIONS.—
‘‘(1) MAXIMUM ENROLLMENT.—The total number of acres
enrolled in the wetlands reserve program shall not exceed
2,275,000 acres, of which, to the maximum extent practicable,
the Secretary shall enroll 250,000 acres in each calendar year.
‘‘(2) METHODS OF ENROLLMENT.—The Secretary shall enroll
acreage into the wetlands reserve program through the use
of permanent easements, 30-year easements, restoration cost
share agreements, or any combination of those options.’’; and
(2) by striking subsection (g).
SEC. 2203. EASEMENTS AND AGREEMENTS.
Section 1237A of the Food Security Act of 1985 (16 U.S.C.
3837a) is amended by striking subsection (h).
H. R. 2646—120
SEC. 2204. CHANGES IN OWNERSHIP; AGREEMENT MODIFICATION;
TERMINATION.
Section 1237E(a) of the Food Security Act of 1985 (16 U.S.C.
3837e(a)) is amended by striking paragraph (2) and inserting the
following:
‘‘(2)(A) the ownership change occurred because of fore-
closure on the land; and
‘‘(B) immediately before the foreclosure, the owner of the
land exercises a right of redemption from the mortgage holder
in accordance with State law; or’’.
Subtitle D—Environmental Quality
Incentives
SEC. 2301. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM.
Chapter 4 of subtitle D of title XII of the Food Security Act
of 1985 (16 U.S.C. 3839aa et seq.) is amended to read as follows:
‘‘SEC. 1240. PURPOSES.
‘‘The purposes of the environmental quality incentives program
established by this chapter are to promote agricultural production
and environmental quality as compatible goals, and to optimize
environmental benefits, by—
‘‘(1) assisting producers in complying with local, State,
and national regulatory requirements concerning—
‘‘(A) soil, water, and air quality;
‘‘(B) wildlife habitat; and
‘‘(C) surface and ground water conservation;
‘‘(2) avoiding, to the maximum extent practicable, the need
for resource and regulatory programs by assisting producers
in protecting soil, water, air, and related natural resources
and meeting environmental quality criteria established by Fed-
eral, State, tribal, and local agencies;
‘‘(3) providing flexible assistance to producers to install
and maintain conservation practices that enhance soil, water,
related natural resources (including grazing land and wetland),
and wildlife while sustaining production of food and fiber;
‘‘(4) assisting producers to make beneficial, cost effective
changes to cropping systems, grazing management, nutrient
management associated with livestock, pest or irrigation
management, or other practices on agricultural land; and
‘‘(5) consolidating and streamlining conservation planning
and regulatory compliance processes to reduce administrative
burdens on producers and the cost of achieving environmental
goals.
‘‘SEC. 1240A. DEFINITIONS.
‘‘In this chapter:
‘‘(1) BEGINNING FARMER OR RANCHER.—The term ‘beginning
farmer or rancher’ has the meaning provided under section
343(a) of the Consolidated Farm and Rural Development Act
(7 U.S.C. 1999(a)).
‘‘(2) ELIGIBLE LAND.—
‘‘(A) IN GENERAL.—The term ‘eligible land’ means land
on which agricultural commodities or livestock are pro-
duced.
H. R. 2646—121
‘‘(B) INCLUSIONS.—The term ‘eligible land’ includes—
‘‘(i) cropland;
‘‘(ii) grassland;
‘‘(iii) rangeland;
‘‘(iv) pasture land;
‘‘(v) private, nonindustrial forest land; and
‘‘(vi) other agricultural land that the Secretary
determines poses a serious threat to soil, air, water,
or related resources.
‘‘(3) 
LAND
MANAGEMENT
PRACTICE.—The 
term 
‘land
management practice’ means a site-specific nutrient or manure
management, integrated pest management, irrigation manage-
ment, tillage or residue management, grazing management,
air quality management, or other land management practice
carried out on eligible land that the Secretary determines is
needed to protect from degradation, in the most cost-effective
manner, water, soil, or related resources.
‘‘(4) LIVESTOCK.—The term ‘livestock’ means dairy cattle,
beef cattle, laying hens, broilers, turkeys, swine, sheep, and
other such animals as are determined by the Secretary.
‘‘(5) PRACTICE.—The term ‘practice’ means 1 or more struc-
tural practices, land management practices, and comprehensive
nutrient management planning practices.
‘‘(6) STRUCTURAL PRACTICE.—The term ‘structural practice’
means—
‘‘(A) the establishment on eligible land of a site-specific
animal waste management facility, terrace, grassed water-
way, contour grass strip, filterstrip, tailwater pit, perma-
nent wildlife habitat, constructed wetland, or other struc-
tural practice that the Secretary determines is needed to
protect, in the most cost effective manner, water, soil,
or related resources from degradation; and
‘‘(B) the capping of abandoned wells on eligible land.
‘‘SEC. 1240B. ESTABLISHMENT AND ADMINISTRATION OF ENVIRON-
MENTAL QUALITY INCENTIVES PROGRAM.
‘‘(a) ESTABLISHMENT.—
‘‘(1) IN GENERAL.—During each of the 2002 through 2007
fiscal years, the Secretary shall provide cost-share payments
and incentive payments to producers that enter into contracts
with the Secretary under the program.
‘‘(2) ELIGIBLE PRACTICES.—With respect to practices imple-
mented under this chapter—
‘‘(A) a producer that implements a structural practice
in accordance with this chapter shall be eligible to receive
cost-share payments; and
‘‘(B) a producer that implements a land management
practice, or develops a comprehensive nutrient manage-
ment plan, in accordance with this chapter shall be eligible
to receive incentive payments.
‘‘(b) PRACTICES AND TERM.—
‘‘(1) PRACTICES.—A contract under this chapter may apply
to 1 or more structural practices, land management practices,
and comprehensive nutrient management practices.
‘‘(2) TERM.—A contract under this chapter shall have a
term that—
H. R. 2646—122
‘‘(A) at a minimum, is equal to the period beginning
on the date on which the contract is entered into and
ending on the date that is 1 year after the date on which
all practices under the contract have been implemented;
but
‘‘(B) not to exceed 10 years.
‘‘(c) BIDDING DOWN.—If the Secretary determines that the
environmental values of 2 or more applications for cost-share pay-
ments or incentive payments are comparable, the Secretary shall
not assign a higher priority to the application only because it
would present the least cost to the program established under
the program.
‘‘(d) COST-SHARE PAYMENTS.—
‘‘(1) IN GENERAL.—Except as provided in paragraph (2),
the cost-share payments provided to a producer proposing to
implement 1 or more practices under the program shall be
not more than 75 percent of the cost of the practice, as deter-
mined by the Secretary.
‘‘(2) EXCEPTIONS.—
‘‘(A) LIMITED
RESOURCE
AND
BEGINNING
FARMERS.—
The Secretary may increase the amount provided to a
producer under paragraph (1) to not more than 90 percent
if the producer is a limited resource or beginning farmer
or rancher, as determined by the Secretary.
‘‘(B) COST-SHARE ASSISTANCE FROM OTHER SOURCES.—
Except as provided in paragraph (3), any cost-share pay-
ments received by a producer from a State or private
organization or person for the implementation of 1 or more
practices on eligible land of the producer shall be in addi-
tion to the payments provided to the producer under para-
graph (1).
‘‘(3) OTHER PAYMENTS.—A producer shall not be eligible
for cost-share payments for practices on eligible land under
the program if the producer receives cost-share payments or
other benefits for the same practice on the same land under
chapter 1 and the program.
‘‘(e) INCENTIVE PAYMENTS.—
‘‘(1) IN GENERAL.—The Secretary shall make incentive pay-
ments in an amount and at a rate determined by the Secretary
to be necessary to encourage a producer to perform 1 or more
land management practices.
‘‘(2) SPECIAL RULE.—In determining the amount and rate
of incentive payments, the Secretary may accord great signifi-
cance to a practice that promotes residue, nutrient, pest,
invasive species, or air quality management.
‘‘(f) MODIFICATION OR TERMINATION OF CONTRACTS.—
‘‘(1) VOLUNTARY MODIFICATION OR TERMINATION.—The Sec-
retary may modify or terminate a contract entered into with
a producer under this chapter if—
‘‘(A) the producer agrees to the modification or termi-
nation; and
‘‘(B) the Secretary determines that the modification
or termination is in the public interest.
‘‘(2) INVOLUNTARY
TERMINATION.—The Secretary may
terminate a contract under this chapter if the Secretary deter-
mines that the producer violated the contract.
H. R. 2646—123
‘‘(g) ALLOCATION OF FUNDING.—For each of fiscal years 2002
through 2007, 60 percent of the funds made available for cost-
share payments and incentive payments under this chapter shall
be targeted at practices relating to livestock production.
‘‘SEC. 1240C. EVALUATION OF OFFERS AND PAYMENTS.
‘‘In evaluating applications for cost-share payments and incen-
tive payments, the Secretary shall accord a higher priority to assist-
ance and payments that—
‘‘(1) encourage the use by producers of cost-effective con-
servation practices; and
‘‘(2) address national conservation priorities.
‘‘SEC. 1240D. DUTIES OF PRODUCERS.
‘‘To receive technical assistance, cost-share payments, or incen-
tive payments under the program, a producer shall agree—
‘‘(1) to implement an environmental quality incentives pro-
gram plan (including a comprehensive nutrient management
plan, if applicable) that describes conservation and environ-
mental purposes to be achieved through 1 or more practices
that are approved by the Secretary;
‘‘(2) not to conduct any practices on the farm or ranch
that would tend to defeat the purposes of the program;
‘‘(3) on the violation of a term or condition of the contract
at anytime the producer has control of the land—
‘‘(A) if the Secretary determines that the violation war-
rants termination of the contract—
‘‘(i) to forfeit all rights to receive payments under
the contract; and
‘‘(ii) to refund to the Secretary all or a portion
of the payments received by the owner or operator
under the contract, including any interest on the pay-
ments, as determined by the Secretary; or
‘‘(B) if the Secretary determines that the violation does
not warrant termination of the contract, to refund to the
Secretary, or accept adjustments to, the payments provided
to the owner or operator, as the Secretary determines to
be appropriate;
‘‘(4) on the transfer of the right and interest of the producer
in land subject to the contract, unless the transferee of the
right and interest agrees with the Secretary to assume all
obligations of the contract, to refund all cost-share payments
and incentive payments received under the program, as deter-
mined by the Secretary;
‘‘(5) to supply information as required by the Secretary
to determine compliance with the program plan and require-
ments of the program; and
‘‘(6) to comply with such additional provisions as the Sec-
retary determines are necessary to carry out the program plan.
‘‘SEC. 1240E. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM PLAN.
‘‘(a) IN GENERAL.—To be eligible to receive cost-share payments
or incentive payments under the program, a producer shall submit
to the Secretary for approval a plan of operations that—
‘‘(1) specifies practices covered under the program;
‘‘(2) includes such terms and conditions as the Secretary
considers necessary to carry out the program, including a
H. R. 2646—124
description of the purposes to be met by the implementation
of the plan; and
‘‘(3) in the case of a confined livestock feeding operation,
provides for development and implementation of a comprehen-
sive nutrient management plan, if applicable.
‘‘(b) AVOIDANCE OF DUPLICATION.—The Secretary shall, to the
maximum extent practicable, eliminate duplication of planning
activities under the program under this chapter and comparable
conservation programs.
‘‘SEC. 1240F. DUTIES OF THE SECRETARY.
‘‘To the extent appropriate, the Secretary shall assist a producer
in achieving the conservation and environmental goals of a program
plan by—
‘‘(1) providing cost-share payments or incentive payments
for developing and implementing 1 or more practices, as appro-
priate; and
‘‘(2) providing the producer with information and training
to aid in implementation of the plan.
‘‘SEC. 1240G. LIMITATION ON PAYMENTS.
‘‘An individual or entity may not receive, directly or indirectly,
cost-share or incentive payments under this chapter that, in the
aggregate, exceed $450,000 for all contracts entered into under
this chapter by the individual or entity during the period of fiscal
years 2002 through 2007, regardless of the number of contracts
entered into under this chapter by the individual or entity.
‘‘SEC. 1240H. CONSERVATION INNOVATION GRANTS.
‘‘(a) IN GENERAL.—The Secretary may pay the cost of competi-
tive grants that are intended to stimulate innovative approaches
to leveraging Federal investment in environmental enhancement
and protection, in conjunction with agricultural production, through
the program.
‘‘(b) USE.—The Secretary may provide grants under this section
to governmental and nongovernmental organizations and persons,
on a competitive basis, to carry out projects that—
‘‘(1) involve producers that are eligible for payments or
technical assistance under the program;
‘‘(2) implement projects, such as—
‘‘(A) market systems for pollution reduction; and
‘‘(B) innovative conservation practices, including the
storing of carbon in the soil; and
‘‘(3) leverage funds made available to carry out the program
under this chapter with matching funds provided by State
and local governments and private organizations to promote
environmental enhancement and protection in conjunction with
agricultural production.
‘‘(c) COST SHARE.—The amount of a grant made under this
section to carry out a project shall not exceed 50 percent of the
cost of the project.
‘‘SEC. 1240I. GROUND AND SURFACE WATER CONSERVATION.
‘‘(a) ESTABLISHMENT.—In carrying out the program under this
chapter, subject to subsection (b), the Secretary shall promote
ground and surface water conservation by providing cost-share pay-
ments, incentive payments, and loans to producers to carry out
H. R. 2646—125
eligible water conservation activities with respect to the agricultural
operations of producers, to—
‘‘(1) improve irrigation systems;
‘‘(2) enhance irrigation efficiencies;
‘‘(3) convert to—
‘‘(A) the production of less water-intensive agricultural
commodities; or
‘‘(B) dryland farming;
‘‘(4) improve the storage of water through measures such
as water banking and groundwater recharge;
‘‘(5) mitigate the effects of drought; or
‘‘(6) institute other measures that improve groundwater
and surface water conservation, as determined by the Secretary,
in the agricultural operations of producers.
‘‘(b) NET SAVINGS.—The Secretary may provide assistance to
a producer under this section only if the Secretary determines
that the assistance will facilitate a conservation measure that
results in a net savings in groundwater or surface water resources
in the agricultural operation of the producer.
‘‘(c) FUNDING.—Of the funds of the Commodity Credit Corpora-
tion, in addition to amounts made available under section 1241(a)(6)
to carry out this chapter, the Secretary shall use—
‘‘(1) to carry out this section—
‘‘(A) $25,000,000 for fiscal year 2002;
‘‘(B) $45,000,000 for fiscal year 2003; and
‘‘(C) $60,000,000 for each of fiscal years 2004 through
2007; and
‘‘(2) $50,000,000 to carry out water conservation activities
in Klamath Basin, California and Oregon, to be made available
as soon as practicable after the date of enactment of this
section.’’.
Subtitle E—Grassland Reserve
SEC. 2401. GRASSLAND RESERVE PROGRAM.
Chapter 2 of the Food Security Act of 1985 (as amended by
section 2001) is amended by adding at the end the following:
‘‘Subchapter C—Grassland Reserve Program
‘‘SEC. 1238N. GRASSLAND RESERVE PROGRAM.
‘‘(a) ESTABLISHMENT.—The Secretary shall establish a grassland
reserve program (referred to in this subchapter as the ‘program’)
to assist owners in restoring and conserving eligible land described
in subsection (c).
‘‘(b) ENROLLMENT CONDITIONS.—
‘‘(1) MAXIMUM ENROLLMENT.—The total number of acres
enrolled in the program shall not exceed 2,000,000 acres of
restored or improved grassland, rangeland, and pastureland.
‘‘(2) METHODS OF ENROLLMENT.—
‘‘(A) IN GENERAL.—Except as provided in subparagraph
(B), the Secretary shall enroll in the program from a willing
owner not less than 40 contiguous acres of land through
the use of—
‘‘(i) a 10-year, 15-year, or 20-year rental agree-
ment;
H. R. 2646—126
‘‘(ii)(I) a 30-year rental agreement or permanent
or 30-year easement; or
‘‘(II) in a State that imposes a maximum duration
for easements, an easement for the maximum duration
allowed under State law.
‘‘(B) WAIVER.—The Secretary may enroll in the pro-
gram such parcels of land that are less than 40 acres
as the Secretary determines are appropriate to achieve
the purposes of the program.
‘‘(3) LIMITATION ON USE OF EASEMENTS AND RENTAL AGREE-
MENTS.—Of the total amount of funds expended under the
program to acquire easements and rental agreements described
in paragraph (2)(A)—
‘‘(A) not more than 40 percent shall be used for rental
agreements described in paragraph (2)(A)(i); and
‘‘(B) not more than 60 percent shall be used for ease-
ments and rental agreements described in paragraph
(2)(A)(ii).
‘‘(c) ELIGIBLE LAND.—Land shall be eligible to be enrolled in
the program if the Secretary determines that the land is private
land that is—
‘‘(1) grassland, land that contains forbs, or shrubland
(including improved rangeland and pastureland); or
‘‘(2) land that—
‘‘(A) is located in an area that has been historically
dominated by grassland, forbs, or shrubland; and
‘‘(B) has potential to serve as habitat for animal or
plant populations of significant ecological value if the land
is—
‘‘(i) retained in the current use of the land; or
‘‘(ii) restored to a natural condition; or
‘‘(3) land that is incidental to land described in paragraph
(1) or (2), if the incidental land is determined by the Secretary
to be necessary for the efficient administration of an agreement
or easement.
‘‘SEC. 1238O. REQUIREMENTS RELATING TO EASEMENTS AND AGREE-
MENTS.
‘‘(a) REQUIREMENTS OF LANDOWNER.—
‘‘(1) IN GENERAL.—To be eligible to enroll land in the pro-
gram through the grant of an easement, the owner of the
land shall enter into an agreement with the Secretary—
‘‘(A) to grant an easement that applies to the land
to the Secretary;
‘‘(B) to create and record an appropriate deed restric-
tion in accordance with applicable State law to reflect
the easement;
‘‘(C) to provide a written statement of consent to the
easement signed by persons holding a security interest
or any vested interest in the land;
‘‘(D) to provide proof of unencumbered title to the
underlying fee interest in the land that is the subject
of the easement; and
‘‘(E) to comply with the terms of the easement and
restoration agreement.
H. R. 2646—127
‘‘(2) AGREEMENTS.—To be eligible to enroll land in the
program under an agreement, the owner or operator of the
land shall agree—
‘‘(A) to comply with the terms of the agreement
(including any related restoration agreements); and
‘‘(B) to the suspension of any existing cropland base
and allotment history for the land under a program
administered by the Secretary.
‘‘(b) TERMS OF EASEMENT OR RENTAL AGREEMENT.—An ease-
ment or rental agreement under subsection (a) shall—
‘‘(1) permit—
‘‘(A) common grazing practices, including maintenance
and necessary cultural practices, on the land in a manner
that is consistent with maintaining the viability of grass-
land, forb, and shrub species common to that locality;
‘‘(B) subject to appropriate restrictions during the
nesting season for birds in the local area that are in signifi-
cant decline or are conserved in accordance with Federal
or State law, as determined by the Natural Resources
Conservation 
Service 
State 
conservationist, 
haying,
mowing, or harvesting for seed production; and
‘‘(C) fire rehabilitation and construction of fire breaks
and fences (including placement of the posts necessary
for fences);
‘‘(2) prohibit—
‘‘(A) the production of crops (other than hay), fruit
trees, vineyards, or any other agricultural commodity that
requires breaking the soil surface; and
‘‘(B) except as permitted under this subsection or sub-
section (d), the conduct of any other activity that would
disturb the surface of the land covered by the easement
or rental agreement; and
‘‘(3) include such additional provisions as the Secretary
determines are appropriate to carry out or facilitate the
administration of this subchapter.
‘‘(c) EVALUATION
AND RANKING
OF EASEMENT
AND RENTAL
AGREEMENT APPLICATIONS.—
‘‘(1) IN GENERAL.—The Secretary shall establish criteria
to evaluate and rank applications for easements and rental
agreements under this subchapter.
‘‘(2) CONSIDERATIONS.—In establishing the criteria, the Sec-
retary shall emphasize support for—
‘‘(A) grazing operations;
‘‘(B) plant and animal biodiversity; and
‘‘(C) grassland, land that contains forbs, and shrubland
under the greatest threat of conversion.
‘‘(d) RESTORATION AGREEMENTS.—
‘‘(1) IN GENERAL.—The Secretary shall prescribe the terms
of a restoration agreement by which grassland, land that con-
tains forbs, or shrubland that is subject to an easement or
rental agreement entered into under the program shall be
restored.
‘‘(2) REQUIREMENTS.—The restoration agreement shall
describe the respective duties of the owner and the Secretary
(including the Federal share of restoration payments and tech-
nical assistance).
H. R. 2646—128
‘‘(e) VIOLATIONS.—On a violation of the terms or conditions
of an easement, rental agreement, or restoration agreement entered
into under this section—
‘‘(1) the easement or rental agreement shall remain in
force; and
‘‘(2) the Secretary may require the owner to refund all
or part of any payments received by the owner under this
subchapter, with interest on the payments as determined appro-
priate by the Secretary.
‘‘SEC. 1238P. DUTIES OF SECRETARY.
‘‘(a) IN GENERAL.—In return for the granting of an easement,
or the execution of a rental agreement, by an owner under this
subchapter, the Secretary shall, in accordance with this section—
‘‘(1) make easement or rental agreement payments to the
owner in accordance with subsection (b); and
‘‘(2) make payments to the owner for the Federal share
of the cost of restoration in accordance with subsection (c).
‘‘(b) PAYMENTS.—
‘‘(1) EASEMENT PAYMENTS.—
‘‘(A) AMOUNT.—In return for the granting of an ease-
ment by an owner under this subchapter, the Secretary
shall make easement payments to the owner in an amount
equal to—
‘‘(i) in the case of a permanent easement, the fair
market value of the land less the grazing value of
the land encumbered by the easement; and
‘‘(ii) in the case of a 30-year easement or an ease-
ment for the maximum duration allowed under
applicable State law, 30 percent of the fair market
value of the land less the grazing value of the land
for the period during which the land is encumbered
by the easement.
‘‘(B) SCHEDULE.—Easement payments may be provided
in not less than 1 payment nor more than 10 annual
payments of equal or unequal amount, as agreed to by
the Secretary and the owner.
‘‘(2) RENTAL AGREEMENT PAYMENTS.—In return for entering
into a rental agreement by an owner under this subchapter,
the Secretary shall make annual payments to the owner during
the term of the rental agreement in an amount that is not
more than 75 percent of the grazing value of the land covered
by the contract.
‘‘(c) FEDERAL SHARE
OF RESTORATION.—The Secretary shall
make payments to an owner under this section of not more than—
‘‘(1) in the case of grassland, land that contains forbs,
or shrubland that has never been cultivated, 90 percent of
the costs of carrying out measures and practices necessary
to restore functions and values of that land; or
‘‘(2) in the case of restored grassland, land that contains
forbs, or shrubland, 75 percent of those costs.
‘‘(d) PAYMENTS TO OTHERS.—If an owner that is entitled to
a payment under this subchapter dies, becomes incompetent, is
otherwise unable to receive the payment, or is succeeded by another
person who renders or completes the required performance, the
Secretary shall make the payment, in accordance with regulations
promulgated by the Secretary and without regard to any other
H. R. 2646—129
provision of law, in such manner as the Secretary determines is
fair and reasonable in light of all the circumstances.
‘‘SEC. 1238Q. DELEGATION TO PRIVATE ORGANIZATIONS.
‘‘(a) IN GENERAL.—The Secretary may permit a private con-
servation or land trust organization (referred to in this section
as a ‘private organization’) or a State agency to hold and enforce
an easement under this subchapter, in lieu of the Secretary, subject
to the right of the Secretary to conduct periodic inspections and
enforce the easement, if—
‘‘(1) the Secretary determines that granting the permission
will promote protection of grassland, land that contains forbs,
and shrubland;
‘‘(2) the owner authorizes the private organization or State
agency to hold and enforce the easement; and
‘‘(3) the private organization or State agency agrees to
assume the costs incurred in administering and enforcing the
easement, including the costs of restoration or rehabilitation
of the land as specified by the owner and the private organiza-
tion or State agency.
‘‘(b) APPLICATION.—A private organization or State agency that
seeks to hold and enforce an easement under this subchapter shall
apply to the Secretary for approval.
‘‘(c) APPROVAL BY SECRETARY.—The Secretary may approve a
private organization to hold and enforce an easement under this
subchapter if (as determined by the Secretary) the private
organization—
‘‘(1)(A) is an organization described in section 501(c)(3)
of the Internal Revenue Code of 1986 that is exempt from
taxation under section 501(a) of that Code; or
‘‘(B) is described in section 509(a)(3), and is controlled
by an organization described in section 509(a)(2), of that Code;
‘‘(2) has the relevant experience necessary to administer
grassland and shrubland easements;
‘‘(3) has a charter that describes the commitment of the
private organization to conserving ranchland, agricultural land,
or grassland for grazing and conservation purposes; and
‘‘(4) has the resources necessary to effectuate the purposes
of the charter.
‘‘(d) REASSIGNMENT.—
‘‘(1) IN GENERAL.—If a private organization holding an ease-
ment on land under this subchapter terminates, not later than
30 days after termination of the private organization, the owner
of the land shall reassign the easement to—
‘‘(A) a new private organization that is approved by
the Secretary; or
‘‘(B) the Secretary.
‘‘(2) NOTIFICATION OF SECRETARY.—
‘‘(A) IN GENERAL.—If the easement is reassigned to
a new private organization, not later than 60 days after
the date of reassignment, the owner and the new organiza-
tion shall notify the Secretary in writing that a reassign-
ment for termination has been made.
‘‘(B) FAILURE TO NOTIFY.—If the owner and the new
organization fail to notify the Secretary of the reassignment
in accordance with subparagraph (A), the easement shall
revert to the control of the Secretary.’’.
H. R. 2646—130
Subtitle F—Other Conservation Programs
SEC. 2501. AGRICULTURAL MANAGEMENT ASSISTANCE.
Section 524 of the Federal Crop Insurance Act (7 U.S.C. 1524)
is amended by striking subsection (b) and inserting the following:
‘‘(b) AGRICULTURAL MANAGEMENT ASSISTANCE.—
‘‘(1) AUTHORITY.—The Secretary shall provide financial
assistance to producers in the States of Connecticut, Delaware,
Maryland, Massachusetts, Maine, Nevada, New Hampshire,
New Jersey, New York, Pennsylvania, Rhode Island, Utah,
Vermont, West Virginia, and Wyoming.
‘‘(2) USES.—A producer may use financial assistance pro-
vided under this subsection to—
‘‘(A) construct or improve—
‘‘(i) watershed management structures; or
‘‘(ii) irrigation structures;
‘‘(B) plant trees to form windbreaks or to improve
water quality;
‘‘(C) mitigate financial risk through production or mar-
keting diversification or resource conservation practices,
including—
‘‘(i) soil erosion control;
‘‘(ii) integrated pest management;
‘‘(iii) organic farming; or
‘‘(iv) to develop and implement a plan to create
marketing opportunities for the producer, including
through value-added processing;
‘‘(D) enter into futures, hedging, or options contracts
in a manner designed to help reduce production, price,
or revenue risk;
‘‘(E) enter into agricultural trade options as a hedging
transaction to reduce production, price, or revenue risk;
or
‘‘(F) conduct any other activity relating to an activity
described in subparagraphs (A) through (E), as determined
by the Secretary.
‘‘(3) PAYMENT LIMITATION.—The total amount of payments
made to a person (as defined in section 1001(5) of the Food
Security Act (7 U.S.C. 1308(5))) under this subsection for any
year may not exceed $50,000.
‘‘(4) COMMODITY CREDIT CORPORATION.—
‘‘(A) IN GENERAL.—The Secretary shall carry out this
subsection through the Commodity Credit Corporation.
‘‘(B) FUNDING.—
‘‘(i) IN
GENERAL.—Except as provided in clause
(ii), the Commodity Credit Corporation shall make
available to carry out this subsection not less than
$10,000,000 for each fiscal year.
‘‘(ii) EXCEPTION.—For each of fiscal years 2003
through 2007, the Commodity Credit Corporation shall
make 
available 
to 
carry 
out 
this 
subsection
$20,000,000.’’.
H. R. 2646—131
SEC. 2502. GRAZING, WILDLIFE HABITAT INCENTIVE, SOURCE WATER
PROTECTION, AND GREAT LAKES BASIN PROGRAMS.
(a) IN GENERAL.—Chapter 5 of subtitle D of title XII of the
Food Security Act of 1985 (16 U.S.C. 3839bb et seq.) is amended
to read as follows:
‘‘CHAPTER 5—OTHER CONSERVATION PROGRAMS
‘‘SEC. 1240M. CONSERVATION OF PRIVATE GRAZING LAND.
‘‘(a) PURPOSE.—It is the purpose of this section to authorize
the Secretary to provide a coordinated technical, educational, and
related assistance program to conserve and enhance private grazing
land resources and provide related benefits to all citizens of the
United States by—
‘‘(1) establishing a coordinated and cooperative Federal,
State, and local grazing conservation program for management
of private grazing land;
‘‘(2) strengthening technical, educational, and related
assistance programs that provide assistance to owners and
managers of private grazing land;
‘‘(3) conserving and improving wildlife habitat on private
grazing land;
‘‘(4) conserving and improving fish habitat and aquatic
systems through grazing land conservation treatment;
‘‘(5) protecting and improving water quality;
‘‘(6) improving the dependability and consistency of water
supplies;
‘‘(7) identifying and managing weed, noxious weed, and
brush encroachment problems on private grazing land; and
‘‘(8) integrating conservation planning and management
decisions by owners and managers of private grazing land,
on a voluntary basis.
‘‘(b) DEFINITIONS.—In this section:
‘‘(1) DEPARTMENT.—The term ‘Department’ means the
Department of Agriculture.
‘‘(2) PRIVATE
GRAZING
LAND.—The term ‘private grazing
land’ means private, State-owned, tribally-owned, and any other
non-federally owned rangeland, pastureland, grazed forest land,
and hay land.
‘‘(3) SECRETARY.—The term ‘Secretary’ means the Secretary
of Agriculture.
‘‘(c) PRIVATE GRAZING LAND CONSERVATION ASSISTANCE.—
‘‘(1) ASSISTANCE TO GRAZING LANDOWNERS AND OTHERS.—
Subject to the availability of appropriations for this section,
the Secretary shall establish a voluntary program to provide
technical, educational, and related assistance to owners and
managers of private grazing land and public agencies, through
local conservation districts, to enable the landowners, man-
agers, and public agencies to voluntarily carry out activities
that are consistent with this section, including—
‘‘(A) maintaining and improving private grazing land
and the multiple values and uses that depend on private
grazing land;
‘‘(B) implementing grazing land management tech-
nologies;
‘‘(C) managing resources on private grazing land,
including—
H. R. 2646—132
‘‘(i) planning, managing, and treating private
grazing land resources;
‘‘(ii) ensuring the long-term sustainability of pri-
vate grazing land resources;
‘‘(iii) harvesting, processing, and marketing private
grazing land resources; and
‘‘(iv) identifying and managing weed, noxious weed,
and brush encroachment problems;
‘‘(D) protecting and improving the quality and quantity
of water yields from private grazing land;
‘‘(E) maintaining and improving wildlife and fish
habitat on private grazing land;
‘‘(F) enhancing recreational opportunities on private
grazing land;
‘‘(G) maintaining and improving the aesthetic character
of private grazing land;
‘‘(H) identifying the opportunities and encouraging the
diversification of private grazing land enterprises; and
‘‘(I) encouraging the use of sustainable grazing systems,
such as year-round, rotational, or managed grazing.
‘‘(2) PROGRAM ELEMENTS.—
‘‘(A) FUNDING.—If funding is provided to carry out
this section, it shall be provided through a specific line-
item in the annual appropriations for the Natural
Resources Conservation Service.
‘‘(B) TECHNICAL
ASSISTANCE
AND
EDUCATION.—Per-
sonnel of the Department trained in pasture and range
management shall be made available under the program
to deliver and coordinate technical assistance and education
to owners and managers of private grazing land, at the
request of the owners and managers.
‘‘(d) GRAZING TECHNICAL ASSISTANCE SELF-HELP.—
‘‘(1) FINDINGS.—Congress finds that—
‘‘(A) there is a severe lack of technical assistance for
farmers and ranchers that graze livestock;
‘‘(B) Federal budgetary constraints preclude any signifi-
cant expansion, and may force a reduction of, current levels
of technical support; and
‘‘(C) farmers and ranchers have a history of coopera-
tively working together to address common needs in the
promotion of their products and in the drainage of wet
areas through drainage districts.
‘‘(2) ESTABLISHMENT
OF
GRAZING
DEMONSTRATION.—In
accordance with paragraph (3), the Secretary may establish
2 grazing management demonstration districts at the rec-
ommendation of the grazing land conservation initiative
steering committee.
‘‘(3) PROCEDURE.—
‘‘(A) PROPOSAL.—Within a reasonable time after the
submission of a request of an organization of farmers or
ranchers engaged in grazing, the Secretary shall propose
that a grazing management district be established.
‘‘(B) FUNDING.—The terms and conditions of the
funding and operation of the grazing management district
shall be proposed by the producers.
‘‘(C) APPROVAL.—The Secretary shall approve the pro-
posal if the Secretary determines that the proposal—
H. R. 2646—133
‘‘(i) is reasonable;
‘‘(ii) will promote sound grazing practices; and
‘‘(iii) contains provisions similar to the provisions
contained in the beef promotion and research order
issued under section 4 of the Beef Research and
Information Act (7 U.S.C. 2903) in effect on April 4,
1996.
‘‘(D) AREA
INCLUDED.—The area proposed to be
included in a grazing management district shall be deter-
mined by the Secretary on the basis of an application
by farmers or ranchers.
‘‘(E) 
AUTHORIZATION.—The 
Secretary 
may 
use
authority under the Agricultural Adjustment Act (7 U.S.C.
601 et seq.), reenacted with amendments by the Agricul-
tural Marketing Agreement Act of 1937, to operate, on
a demonstration basis, a grazing management district.
‘‘(F) ACTIVITIES.—The activities of a grazing manage-
ment district shall be scientifically sound activities, as
determined by the Secretary in consultation with a tech-
nical advisory committee composed of ranchers, farmers,
and technical experts.
‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There is authorized
to be appropriated to carry out this section $60,000,000 for each
of fiscal years 2002 through 2007.
‘‘SEC. 1240N. WILDLIFE HABITAT INCENTIVE PROGRAM.
‘‘(a) IN GENERAL.—The Secretary, in consultation with the State
technical committees established under section 1261, shall establish
within the Natural Resources Conservation Service a program to
be known as the wildlife habitat incentive program (referred to
in this section as the ‘program’).
‘‘(b) COST-SHARE PAYMENTS.—
‘‘(1) IN GENERAL.—Under the program, the Secretary shall
make cost-share payments to landowners to develop—
‘‘(A) upland wildlife habitat;
‘‘(B) wetland wildlife habitat;
‘‘(C) habitat for threatened and endangered species;
‘‘(D) fish habitat; and
‘‘(E) other types of wildlife habitat approved by the
Secretary.
‘‘(2) INCREASED COST SHARE FOR LONG-TERM AGREEMENTS.—
‘‘(A) IN GENERAL.—In a case in which the Secretary
enters into an agreement or contract to protect and restore
plant and animal habitat that has a term of at least 15
years, the Secretary may provide cost-share payments in
addition to amounts provided under paragraph (1).
‘‘(B) FUNDING
LIMITATION.—The Secretary may use,
for a fiscal year, not more than 15 percent of funds made
available under section 1241(a)(7) for the fiscal year to
carry out contracts and agreements described in subpara-
graph (A).
‘‘(c) REGIONAL EQUITY.—In carrying out this section, the Sec-
retary shall, to the maximum extent practicable, ensure that
regional issues of concern relating to wildlife habitat are addressed
in an appropriate manner.
H. R. 2646—134
‘‘SEC. 1240O. GRASSROOTS SOURCE WATER PROTECTION PROGRAM.
‘‘(a) IN GENERAL.—The Secretary shall establish a national
grassroots water protection program to more effectively use onsite
technical assistance capabilities of each State rural water associa-
tion that, as of the date of enactment of this section, operates
a wellhead or groundwater protection program in the State.
‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—There is authorized
to be appropriated to carry out this section $5,000,000 for each
of fiscal years 2002 through 2007.
‘‘SEC. 1240P. GREAT LAKES BASIN PROGRAM FOR SOIL EROSION AND
SEDIMENT CONTROL.
‘‘(a) IN GENERAL.—The Secretary, in consultation with the
Great Lakes Commission created by Article IV of the Great Lakes
Basin Compact (82 Stat. 415) and in cooperation with the Adminis-
trator of the Environmental Protection Agency and the Secretary
of the Army, may carry out the Great Lakes basin program for
soil erosion and sediment control (referred to in this section as
the ‘program’).
‘‘(b) ASSISTANCE.—In carrying out the program, the Secretary
may—
‘‘(1) provide project demonstration grants, provide technical
assistance, and carry out information and education programs
to improve water quality in the Great Lakes basin by reducing
soil erosion and improving sediment control; and
‘‘(2) provide a priority for projects and activities that
directly reduce soil erosion or improve sediment control.
‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There is authorized
to be appropriated to carry out this section $5,000,000 for each
of fiscal years 2002 through 2007.’’.
(b) CONFORMING AMENDMENT.—Sections 386 and 387 of the
Federal Agriculture Improvement and Reform Act of 1996 (16 U.S.C.
2005b, 3836a) are repealed.
SEC. 2503. FARMLAND PROTECTION PROGRAM.
(a) IN GENERAL.—Chapter 2 of the Food Security Act of 1985
(as amended by section 2001) is amended by adding at the end
the following:
‘‘Subchapter B—Farmland Protection Program
‘‘SEC. 1238H. DEFINITIONS.
‘‘In this subchapter:
‘‘(1) ELIGIBLE ENTITY.—The term ‘eligible entity’ means—
‘‘(A) any agency of any State or local government or
an Indian tribe (including a farmland protection board
or land resource council established under State law); or
‘‘(B) any organization that—
‘‘(i) is organized for, and at all times since the
formation of the organization has been operated prin-
cipally for, 1 or more of the conservation purposes
specified in clause (i), (ii), (iii), or (iv) of section
170(h)(4)(A) of the Internal Revenue Code of 1986;
‘‘(ii) is an organization described in section
501(c)(3) of that Code that is exempt from taxation
under section 501(a) of that Code;
H. R. 2646—135
‘‘(iii) is described in section 509(a)(2) of that Code;
or
‘‘(iv) is described in section 509(a)(3), and is con-
trolled by an organization described in section
509(a)(2), of that Code.
‘‘(2) ELIGIBLE LAND.—
‘‘(A) IN GENERAL.—The term ‘eligible land’ means land
on a farm or ranch that—
‘‘(i)(I) has prime, unique, or other productive soil;
or
‘‘(II) contains historical or archaeological resources;
and
‘‘(ii) is subject to a pending offer for purchase from
an eligible entity.
‘‘(B) INCLUSIONS.—The term ‘eligible land’ includes, on
a farm or ranch—
‘‘(i) cropland;
‘‘(ii) rangeland;
‘‘(iii) grassland;
‘‘(iv) pasture land; and
‘‘(v) forest land that is an incidental part of an
agricultural operation, as determined by the Secretary.
‘‘(3) INDIAN TRIBE.—The term ‘Indian tribe’ has the meaning
given the term in section 4 of the Indian Self-Determination
and Education Assistance Act (25 U.S.C. 450b).
‘‘(4) PROGRAM.—The term ‘program’ means the farmland
protection program established under section 1238I(a).
‘‘SEC. 1238I. FARMLAND PROTECTION.
‘‘(a) IN GENERAL.—The Secretary, acting through the Natural
Resources Conservation Service, shall establish and carry out a
farmland protection program under which the Secretary shall pur-
chase conservation easements or other interests in eligible land
that is subject to a pending offer from an eligible entity for the
purpose of protecting topsoil by limiting nonagricultural uses of
the land.
‘‘(b) CONSERVATION PLAN.—Any highly erodible cropland for
which a conservation easement or other interest is purchased under
this subchapter shall be subject to the requirements of a conserva-
tion plan that requires, at the option of the Secretary, the conversion
of the cropland to less intensive uses.
‘‘(c) COST SHARING.—
‘‘(1) FARMLAND PROTECTION.—
‘‘(A) SHARE PROVIDED UNDER THIS SUBSECTION.—The
share of the cost of purchasing a conservation easement
or other interest in eligible land described in subsection
(a) provided under section 1241(d) shall not exceed 50
percent of the appraised fair market value of the conserva-
tion easement or other interest in eligible land.
‘‘(B) SHARE NOT PROVIDED UNDER THIS SUBSECTION.—
As part of the share of the cost of purchasing a conservation
easement or other interest in eligible land described in
subsection (a) that is not provided under section 1241(d),
an eligible entity may include a charitable donation by
the private landowner from which the eligible land is to
be purchased of not more than 25 percent of the fair
H. R. 2646—136
market value of the conservation easement or other interest
in eligible land.
‘‘(2) BIDDING DOWN.—If the Secretary determines that 2
or more applications for the purchase of a conservation ease-
ment or other interest in eligible land described in subsection
(a) are comparable in achieving the purposes of this section,
the Secretary shall not assign a higher priority to any 1 of
those applications solely on the basis of lesser cost to the
farmland protection program established under subsection (a).
‘‘SEC. 1238J. FARM VIABILITY PROGRAM.
‘‘(a) IN GENERAL.—The Secretary may provide to eligible enti-
ties identified by the Secretary grants for use in carrying out
farm viability programs developed by the eligible entities and
approved by the Secretary.
‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated to the Secretary to carry out this section such
sums as are necessary for each of fiscal years 2002 through 2007.’’.
(b) CONFORMING AMENDMENTS.—
(1) IN GENERAL.—
(A) Section 388 of the Federal Agriculture Improve-
ment and Reform Act of 1996 (16 U.S.C. 3830 note; Public
Law 104–127) is repealed.
(B) Section 211 of the Agriculture Risk Protection Act
of 2000 (16 U.S.C. 3830 note; Public Law 106–224) is
amended—
(i) by striking subsection (a); and
(ii) in subsection (b)—
(I) by striking the subsection designation and
the subsection heading;
(II) by redesignating paragraphs (1), (2), and
(3) as subsections (a), (b), and (c), respectively,
and indenting appropriately;
(III) in subsection (a) (as so redesignated), by
redesignating subparagraphs (A), (B), and (C) as
paragraphs (1), (2), and (3), respectively, and
indenting appropriately;
(IV) in subsection (b) (as so redesignated), by
striking ‘‘ASSISTANCE’’ and inserting ‘‘ASSISTANCE’’;
and
(V) by striking ‘‘subsection’’ each place it
appears and inserting ‘‘section’’.
(2) EFFECT ON CONTRACTS.—The amendment made by para-
graph (1)(A) shall have no effect on any contract entered into
under section 388 of the Federal Agriculture Improvement and
Reform Act of 1996 (16 U.S.C. 3830 note) that is in effect
as of the date of enactment of this Act.
SEC. 2504. RESOURCE CONSERVATION AND DEVELOPMENT PROGRAM.
Subtitle H of title XV of the Agriculture and Food Act of
1981 (16 U.S.C. 3451 et seq.) is amended to read as follows:
H. R. 2646—137
‘‘Subtitle H—Resource Conservation and
Development Program
‘‘SEC. 1528. DEFINITIONS.
‘‘In this subtitle:
‘‘(1) AREA PLAN.—The term ‘area plan’ means a resource
conservation and use plan developed through a planning process
by a council for a designated area of 1 or more States, or
of land under the jurisdiction of an Indian tribe, that includes
1 or more of the following elements:
‘‘(A) A land conservation element, the purpose of which
is to control erosion and sedimentation.
‘‘(B) A water management element that provides 1
or more clear environmental or conservation benefits, the
purpose of which is to provide for—
‘‘(i) the conservation, use, and quality of water,
including irrigation and rural water supplies;
‘‘(ii) the mitigation of floods and high water tables;
‘‘(iii) the repair and improvement of reservoirs;
‘‘(iv) the improvement of agricultural water
management; and
‘‘(v) the improvement of water quality.
‘‘(C) A community development element, the purpose
of which is to improve—
‘‘(i) the development of resources-based industries;
‘‘(ii) the protection of rural industries from natural
resource hazards;
‘‘(iii) the development of adequate rural water and
waste disposal systems;
‘‘(iv) the improvement of recreation facilities;
‘‘(v) the improvement in the quality of rural
housing;
‘‘(vi) the provision of adequate health and edu-
cation facilities;
‘‘(vii) the satisfaction of essential transportation
and communication needs; and
‘‘(viii) the promotion of food security, economic
development, and education.
‘‘(D) A land management element, the purpose of which
is—
‘‘(i) energy conservation, including the production
of energy crops;
‘‘(ii) the protection of agricultural land, as appro-
priate, from conversion to other uses;
‘‘(iii) farmland protection; and
‘‘(iv) the protection of fish and wildlife habitats.
‘‘(2) BOARD.—The term ‘Board’ means the Resource Con-
servation and Development Policy Advisory Board established
under section 1533(a).
‘‘(3) COUNCIL.—The term ‘council’ means a nonprofit entity
(including an affiliate of the entity) operating in a State that
is—
‘‘(A) established by volunteers or representatives of
States, local units of government, Indian tribes, or local
nonprofit organizations to carry out an area plan in a
designated area; and
H. R. 2646—138
‘‘(B) designated by the chief executive officer or legisla-
ture of the State to receive technical assistance and finan-
cial assistance under this subtitle.
‘‘(4) DESIGNATED AREA.—The term ‘designated area’ means
a geographic area designated by the Secretary to receive tech-
nical assistance and financial assistance under this subtitle.
‘‘(5) FINANCIAL ASSISTANCE.—The term ‘financial assistance’
means a grant or loan provided by the Secretary (or the Sec-
retary and other Federal agencies) to, or a cooperative agree-
ment entered into by the Secretary (or the Secretary and other
Federal agencies) with, a council, or association of councils,
to carry out an area plan in a designated area, including
assistance provided for planning, analysis, feasibility studies,
training, education, and other activities necessary to carry out
the area plan.
‘‘(6) INDIAN TRIBE.—The term ‘Indian tribe’ has the meaning
given the term in section 4 of the Indian Self-Determination
and Education Assistance Act (25 U.S.C. 450b).
‘‘(7) LOCAL UNIT OF GOVERNMENT.—The term ‘local unit
of government’ means—
‘‘(A) any county, city, town, township, parish, village,
or other general-purpose subdivision of a State; and
‘‘(B) any local or regional special district or other lim-
ited political subdivision of a State, including any soil con-
servation district, school district, park authority, and water
or sanitary district.
‘‘(8) 
NONPROFIT
ORGANIZATION.—The 
term 
‘nonprofit
organization’ means any organization that is—
‘‘(A) described in section 501(c) of the Internal Revenue
Code of 1986; and
‘‘(B) exempt from taxation under section 501(a) of the
Internal Revenue Code of 1986.
‘‘(9) PLANNING
PROCESS.—The term ‘planning process’
means actions taken by a council to develop and carry out
an effective area plan in a designated area, including develop-
ment of the area plan, goals, purposes, policies, implementation
activities, evaluations and reviews, and the opportunity for
public participation in the actions.
‘‘(10) PROJECT.—The term ‘project’ means a project that
is carried out by a council to achieve any of the elements
of an area plan.
‘‘(11) SECRETARY.—The term ‘Secretary’ means the Sec-
retary of Agriculture.
‘‘(12) STATE.—The term ‘State’ means—
‘‘(A) any State;
‘‘(B) the District of Columbia; or
‘‘(C) any territory or possession of the United States.
‘‘(13) TECHNICAL ASSISTANCE.—The term ‘technical assist-
ance’ means any service provided by the Secretary or agent
of the Secretary, including—
‘‘(A) inventorying, evaluating, planning, designing,
supervising, laying out, and inspecting projects;
‘‘(B) providing maps, reports, and other documents
associated with the services provided;
‘‘(C) providing assistance for the long-term implementa-
tion of area plans; and
H. R. 2646—139
‘‘(D) providing services of an agency of the Department
of Agriculture to assist councils in developing and carrying
out area plans.
‘‘SEC. 1529. RESOURCE CONSERVATION AND DEVELOPMENT PROGRAM.
‘‘The Secretary shall establish a resource conservation and
development program under which the Secretary shall provide tech-
nical assistance and financial assistance to councils to develop
and carry out area plans and projects in designated areas—
‘‘(1) to conserve and improve the use of land, develop nat-
ural resources, and improve and enhance the social, economic,
and environmental conditions in primarily rural areas of the
United States; and
‘‘(2) to encourage and improve the capability of State, units
of government, Indian tribes, nonprofit organizations, and coun-
cils to carry out the purposes described in paragraph (1).
‘‘SEC. 1530. SELECTION OF DESIGNATED AREAS.
‘‘The Secretary shall select designated areas for assistance
under this subtitle on the basis of the elements of area plans.
‘‘SEC. 1531. POWERS OF THE SECRETARY.
‘‘In carrying out this subtitle, the Secretary may—
‘‘(1) provide technical assistance to any council to assist
in developing and implementing an area plan for a designated
area;
‘‘(2) cooperate with other departments and agencies of the
Federal Government, States, local units of government, local
Indian tribes, and local nonprofit organizations in conducting
surveys and inventories, disseminating information, and devel-
oping area plans;
‘‘(3) assist in carrying out an area plan approved by the
Secretary for any designated area by providing technical assist-
ance and financial assistance to any council; and
‘‘(4) enter into agreements with councils in accordance with
section 1532.
‘‘SEC. 1532. ELIGIBILITY; TERMS AND CONDITIONS.
‘‘(a) ELIGIBILITY.—Technical assistance and financial assistance
may be provided by the Secretary under this subtitle to any council
to assist in carrying out a project specified in an area plan approved
by the Secretary only if—
‘‘(1) the council agrees in writing—
‘‘(A) to carry out the project; and
‘‘(B) to finance or arrange for financing of any portion
of the cost of carrying out the project for which financial
assistance is not provided by the Secretary under this
subtitle;
‘‘(2) the project is included in an area plan and is approved
by the council;
‘‘(3) the Secretary determines that assistance is necessary
to carry out the area plan;
‘‘(4) the project provided for in the area plan is consistent
with any comprehensive plan for the area;
‘‘(5) the cost of the land or an interest in the land acquired
or to be acquired under the plan by any State, local unit
of government, Indian tribe, or local nonprofit organization
H. R. 2646—140
is borne by the State, local unit of government, Indian tribe,
or local nonprofit organization, respectively; and
‘‘(6) the State, local unit of government, Indian tribe, or
local nonprofit organization participating in the area plan
agrees to maintain and operate the project.
‘‘(b) LOANS.—
‘‘(1) IN
GENERAL.—Subject to paragraphs (2) and (3), a
loan made under this subtitle shall be made on such terms
and conditions as the Secretary may prescribe.
‘‘(2) TERM.—A loan for a project made under this subtitle
shall have a term of not more than 30 years after the date
of completion of the project.
‘‘(3) INTEREST RATE.—A loan made under this subtitle shall
bear interest at the average rate of interest paid by the United
States on obligations of a comparable term, as determined
by the Secretary of the Treasury.
‘‘(c) APPROVAL BY SECRETARY.—Technical assistance and finan-
cial assistance under this subtitle may not be made available to
a council to carry out an area plan unless the area plan has
been submitted to and approved by the Secretary.
‘‘(d) WITHDRAWAL.—The Secretary may withdraw technical
assistance and financial assistance with respect to any area plan
if the Secretary determines that the assistance is no longer nec-
essary or that sufficient progress has not been made toward devel-
oping or implementing the elements of the area plan.
‘‘SEC. 1533. RESOURCE CONSERVATION AND DEVELOPMENT POLICY
ADVISORY BOARD.
‘‘(a) ESTABLISHMENT.—The Secretary shall establish within the
Department of Agriculture a Resource Conservation and Develop-
ment Policy Advisory Board.
‘‘(b) COMPOSITION.—
‘‘(1) IN GENERAL.—The Board shall be composed of at least
7 employees of the Department of Agriculture selected by the
Secretary.
‘‘(2) CHAIRPERSON.—A member of the Board shall be des-
ignated by the Secretary to serve as chairperson of the Board.
‘‘(c) DUTIES.—The Board shall advise the Secretary regarding
the administration of this subtitle, including the formulation of
policies for carrying out this subtitle.
‘‘SEC. 1534. EVALUATION OF PROGRAM.
‘‘(a) IN GENERAL.—The Secretary, in consultation with councils,
shall evaluate the program established under this subtitle to deter-
mine whether the program is effectively meeting the needs of,
and the purposes identified by, States, units of government, Indian
tribes, nonprofit organizations, and councils participating in, or
served by, the program.
‘‘(b) REPORT.—Not later than June 30, 2005, the Secretary
shall submit to the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture, Nutrition, and
Forestry of the Senate a report describing the results of the evalua-
tion, together with any recommendations of the Secretary for con-
tinuing, terminating, or modifying the program.
H. R. 2646—141
‘‘SEC. 1535. LIMITATION ON ASSISTANCE.
‘‘In carrying out this subtitle, the Secretary shall provide tech-
nical assistance and financial assistance with respect to not more
than 450 active designated areas.
‘‘SEC. 1536. SUPPLEMENTAL AUTHORITY OF THE SECRETARY.
‘‘The authority of the Secretary under this subtitle to assist
councils in the development and implementation of area plans shall
be supplemental to, and not in lieu of, any authority of the Secretary
under any other provision of law.
‘‘SEC. 1537. AUTHORIZATION OF APPROPRIATIONS.
‘‘(a) IN GENERAL.—There are authorized to be such sums as
are necessary to carry out this subtitle.
‘‘(b) LOANS.—The Secretary shall not use more than $15,000,000
of any funds made available for a fiscal year to make loans under
this subtitle.
‘‘(c) AVAILABILITY.—Funds appropriated to carry out this sub-
title shall remain available until expended.’’.
SEC. 2505. SMALL WATERSHED REHABILITATION PROGRAM.
Section 14 of the Watershed Protection and Flood Prevention
Act (16 U.S.C. 1012) is amended by striking subsection (h) and
inserting the following:
‘‘(h) FUNDING.—
‘‘(1) FUNDS OF COMMODITY CREDIT CORPORATION.—In car-
rying out this section, of the funds of the Commodity Credit
Corporation, the Secretary shall make available, to remain
available until expended—
‘‘(A) $45,000,000 for fiscal year 2003;
‘‘(B) $50,000,000 for fiscal year 2004;
‘‘(C) $55,000,000 for fiscal year 2005;
‘‘(D) $60,000,000 for fiscal year 2006;
‘‘(E) $65,000,000 for fiscal year 2007; and
‘‘(F) $0 for fiscal year 2008.
‘‘(2) AUTHORIZATION
OF
APPROPRIATIONS.—In addition to
amounts made available under paragraph (1), there are author-
ized to be appropriated to the Secretary to carry out this
section, to remain available until expended—
‘‘(A) $45,000,000 for fiscal year 2003;
‘‘(B) $55,000,000 for fiscal year 2004;
‘‘(C) $65,000,000 for fiscal year 2005;
‘‘(D) $75,000,000 for fiscal year 2006; and
‘‘(E) $85,000,000 for fiscal year 2007.’’.
SEC. 2506. USE OF SYMBOLS, SLOGANS, AND LOGOS.
Section 356 of the Federal Agriculture Improvement Act of
1996 (16 U.S.C. 5801 et seq.) is amended—
(1) in subsection (c)—
(A) by redesignating paragraphs (4) through (7) as
paragraphs (5) through (8), respectively; and
(B) by inserting after paragraph (3) the following:
‘‘(4) on the written approval of the Secretary, to use, license,
or transfer symbols, slogans, and logos of the Foundation (exclu-
sive of any symbol or logo of a governmental entity);’’; and
(2) in subsection (d), by adding at the end the following:
‘‘(3) USE OF SYMBOLS, SLOGANS, AND LOGOS OF THE FOUNDA-
TION.—
H. R. 2646—142
‘‘(A) IN GENERAL.—The Secretary may authorize the
Foundation to use, license, or transfer symbols, slogans,
and logos of the Foundation.
‘‘(B) INCOME.—
‘‘(i) IN
GENERAL.—All revenue received by the
Foundation from the use, licensing, or transfer of sym-
bols, slogans, and logos of the Foundation shall be
transferred to the Secretary.
‘‘(ii) CONSERVATION
OPERATIONS.—The Secretary
shall transfer all revenue received under clause (i)
to the account within the Natural Resources Conserva-
tion Service that is used to carry out conservation
operations.’’.
SEC. 2507. DESERT TERMINAL LAKES.
‘‘(a) IN GENERAL.—Subject to subsection (b), as soon as prac-
ticable after the date of enactment of this Act, the Secretary of
Agriculture shall transfer $200,000,000 of the funds of the Com-
modity Credit Corporation to the Bureau of Reclamation Water
and Related Resources Account, which funds shall—
‘‘(1) be used by the Secretary of the Interior, acting through
the Commissioner of Reclamation, to provide water to at-risk
natural desert terminal lakes; and
‘‘(2) remain available until expended.
‘‘(b) LIMITATION.—The funds described in subsection (a) shall
not be used to purchase or lease water rights.
Subtitle G—Conservation Corridor
Demonstration Program
SEC. 2601. DEFINITIONS.
In this subtitle:
(1) DELMARVA
PENINSULA.—The term ‘‘Delmarva Penin-
sula’’ means land in the States of Delaware, Maryland, and
Virginia located on the east side of the Chesapeake Bay.
(2) DEMONSTRATION PROGRAM.—The term ‘‘demonstration
program’’ means the Conservation Corridor Demonstration Pro-
gram established under this subtitle.
(3) CONSERVATION CORRIDOR PLAN; PLAN.—The terms ‘‘con-
servation corridor plan’’ and ‘‘plan’’ mean a conservation cor-
ridor plan required to be submitted and approved as a condition
for participation in the demonstration program.
(4) SECRETARY.—The term ‘‘Secretary’’ means the Secretary
of Agriculture.
SEC. 2602. CONSERVATION CORRIDOR DEMONSTRATION PROGRAM.
(a) ESTABLISHMENT.—The Secretary shall carry out a dem-
onstration program, to be known as the ‘‘Conservation Corridor
Demonstration Program’’, under which any of the States of Dela-
ware, Maryland, and Virginia, a local government of any 1 of
those States with jurisdiction over land on the Delmarva Peninsula,
or a combination of those States, may submit a conservation corridor
plan to integrate agriculture and forestry conservation programs
of the Department of Agriculture with State and local efforts to
address farm conservation needs.
(b) SUBMISSION OF CONSERVATION CORRIDOR PLAN.—
H. R. 2646—143
(1) SUBMISSION AND PROPOSAL.—To be eligible to partici-
pate in the demonstration program, a State, local government,
or combination of States referred to in subsection (a) shall—
(A) submit to the Secretary a conservation corridor
plan that—
(i) proposes specific criteria and commitment of
resources in the geographic region designated in the
plan; and
(ii) describes how the linkage of Federal, State,
and local resources will improve—
(I) the economic viability of agriculture; and
(II) the environmental integrity of the water-
sheds in the Delmarva Peninsula; and
(B) demonstrate to the Secretary that, in developing
the plan, the State, local government, or combination of
States has solicited and taken into account the views of
local residents.
(2) DRAFT MEMORANDUM OF AGREEMENT.—If the conserva-
tion corridor plan is submitted by more than 1 State, the
plan shall provide a draft memorandum of agreement among
entities in each submitting State.
(c) REVIEW OF PLAN.—Not later than 90 days after the date
of receipt of a conservation corridor plan, the Secretary—
(1) shall review the plan; and
(2) may approve the plan for implementation under this
subtitle if the Secretary determines that the plan meets the
requirements specified in subsection (d).
(d) CRITERIA FOR APPROVAL.—The Secretary may approve a
conservation corridor plan only if, as determined by the Secretary,
the plan provides for each of the following:
(1) VOLUNTARY ACTIONS.—Actions taken under the plan—
(A) are voluntary;
(B) require the consent of willing landowners; and
(C) provide a mechanism by which the landowner may
withdraw such consent without adverse consequences other
than the loss of any payments to the landowner conditioned
on continued enrollment of the land.
(2) LAND OF HIGH CONSERVATION VALUE.—Criteria specified
in the plan ensure that land enrolled in each conservation
program incorporated through the plan are of exceptionally
high conservation value, as determined by the Secretary.
(3) NO EFFECT ON UNENROLLED LAND.—The enrollment of
land in a conservation program incorporated through the plan
will neither—
(A) adversely affect any adjacent land not so enrolled;
nor
(B) create any buffer zone on such unenrolled land.
(4) GREATER BENEFITS.—The conservation programs incor-
porated through the plan provide benefits greater than the
benefits that would likely be achieved through individual
application of the conservation programs.
(5) SUFFICIENT STAFFING.—Staffing, considering both Fed-
eral and non-Federal resources, is sufficient to ensure success
of the plan.
H. R. 2646—144
SEC. 2603. IMPLEMENTATION OF CONSERVATION CORRIDOR PLAN.
(a) MEMORANDUM OF AGREEMENT.—On approval of a conserva-
tion corridor plan, the Secretary may enter into a memorandum
of agreement with the State, local government, or combination
of States that submitted the plan to—
(1) guarantee specific program resources for implementa-
tion of the plan;
(2) establish various compensation rates to the extent that
the parties to the agreement consider justified; and
(3) provide streamlined and integrated paperwork require-
ments.
(b) CONTINUED COMPLIANCE WITH PLAN APPROVAL CRITERIA.—
The Secretary shall terminate the memorandum of agreement
entered into under subsection (a) with respect to an approved
conservation corridor plan and cease the provision of resources
for implementation of the plan if the Secretary determines that,
in the implementation of the plan—
(1) the State, local government, or combination of States
that submitted the plan has deviated from—
(A) the plan;
(B) the criteria specified in section 2602(d) on which
approval of the plan was conditioned; or
(C) the cost-sharing requirements of section 2604(a)
or any other condition of the plan; or
(2) the economic viability of agriculture in the geographic
region designated in the plan is being hindered.
(c) PROGRESS REPORT.—At the end of the 3-year period that
begins on the date on which funds are first provided with respect
to a conservation corridor plan under the demonstration program,
the State, local government, or combination of States that submitted
the plan shall submit to the Secretary—
(1) a report on the effectiveness of the activities carried
out under the plan; and
(2) an evaluation of the economic viability of agriculture
in the geographic region designated in the plan.
(d) DURATION.—The demonstration program shall be carried
out for not less than 3 nor more than 5 years beginning on the
date on which funds are first provided under the demonstration
program.
SEC. 2604. FUNDING REQUIREMENTS.
(a) COST SHARING.—
(1) REQUIRED NON-FEDERAL SHARE.—Subject to paragraph
(2), as a condition on the approval of a conservation corridor
plan, the Secretary shall require the State and local partici-
pants to contribute financial resources sufficient to cover at
least 50 percent of the total cost of the activities carried out
under the plan.
(2) EXCEPTION.—The Secretary may reduce the cost-sharing
requirement in the case of a specific project or activity under
the demonstration program on good cause and on demonstration
that the project or activity is likely to achieve extraordinary
natural resource benefits.
(b) RESERVATION
OF FUNDS.—The Secretary may consider
directing funds on a priority basis to the demonstration program
and to projects in areas identified by the plan.
H. R. 2646—145
(c) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated such sums as are necessary to carry out this
subtitle for each of fiscal years 2002 through 2007.
Subtitle H—Funding and Administration
SEC. 2701. FUNDING AND ADMINISTRATION.
Subtitle E of the Food Security Act of 1985 is amended by
striking sections 1241 and 1242 (16 U.S.C. 3841, 3842) and inserting
the following:
‘‘SEC. 1241. COMMODITY CREDIT CORPORATION.
‘‘(a) IN GENERAL.—For each of fiscal years 2002 through 2007,
the Secretary shall use the funds, facilities, and authorities of
the Commodity Credit Corporation to carry out the following pro-
grams under subtitle D (including the provision of technical assist-
ance):
‘‘(1) The conservation reserve program under subchapter
B of chapter 1.
‘‘(2) The wetlands reserve program under subchapter C
of chapter 1.
‘‘(3) The conservation security program under subchapter
A of chapter 2.
‘‘(4) The farmland protection program under subchapter
B of chapter 2, using, to the maximum extent practicable—
‘‘(A) $50,000,000 in fiscal year 2002;
‘‘(B) $100,000,000 in fiscal year 2003;
‘‘(C) $125,000,000 in each of fiscal years 2004 and
2005;
‘‘(D) $100,000,000 in fiscal year 2006; and
‘‘(E) $97,000,000 in fiscal year 2007.
‘‘(5) The grassland reserve program under subchapter C
of chapter 2, using, to the maximum extent practicable
$254,000,000 for the period of fiscal years 2003 through 2007.
‘‘(6) The environmental quality incentives program under
chapter 4, using, to the maximum extent practicable—
‘‘(A) $400,000,000 in fiscal year 2002;
‘‘(B) $700,000,000 in fiscal year 2003;
‘‘(C) $1,000,000,000 in fiscal year 2004;
‘‘(D) $1,200,000,000 in each of fiscal years 2005 and
2006; and
‘‘(E) $1,300,000,000 in fiscal year 2007.
‘‘(7) The wildlife habitat incentives program under section
1240N, using, to the maximum extent practicable—
‘‘(A) $15,000,000 in fiscal year 2002;
‘‘(B) $30,000,000 in fiscal year 2003;
‘‘(C) $60,000,000 in fiscal year 2004; and
‘‘(D) $85,000,000 in each of fiscal years 2005 through
2007.
‘‘(b) SECTION 11.—Nothing in this section affects the limit on
expenditures for technical assistance imposed by section 11 of the
Commodity Credit Corporation Charter Act (15 U.S.C. 714i).
‘‘(c) REGIONAL EQUITY.—Before April 1 of each fiscal year, the
Secretary shall give priority for funding under the conservation
H. R. 2646—146
programs under subtitle D (excluding the conservation reserve pro-
gram under subchapter B of chapter 1, the wetlands reserve pro-
gram under subchapter C of chapter 1, and the conservation security
program under subchapter A of chapter 2) to approved applications
in any State that has not received, for the fiscal year, an aggregate
amount of at least $12,000,000 for those conservation programs.
‘‘SEC. 1242. DELIVERY OF TECHNICAL ASSISTANCE.
‘‘(a) IN GENERAL.—The Secretary shall provide technical assist-
ance under this title to a producer eligible for that assistance—
‘‘(1) directly; or
‘‘(2) at the option of the producer, through a payment,
as determined by the Secretary, to the producer for an approved
third party, if available.
‘‘(b) CERTIFICATION OF THIRD-PARTY PROVIDERS.—
‘‘(1) IN GENERAL.—Not later than 180 days after the date
of enactment of the Farm Security and Rural Investment Act
of 2002, the Secretary shall, by regulation, establish a system
for—
‘‘(A) approving individuals and entities to provide tech-
nical assistance to carry out programs under this title
(including criteria for the evaluation of providers or poten-
tial providers of technical assistance); and
‘‘(B) establishing the amounts and methods for pay-
ments for that assistance.
‘‘(2) EXPERTISE.—In promulgating regulations to carry out
this subsection the Secretary shall ensure that persons with
expertise in the technical aspects of conservation planning,
watershed planning, environmental engineering (including
commercial entities, nonprofit entities, State or local govern-
ments or agencies, and other Federal agencies), are eligible
to become approved providers of the technical assistance.
‘‘(3) INTERIM ASSISTANCE.—
‘‘(A) IN GENERAL.—A person that has provided technical
assistance in accordance with an agreement between the
person and the Secretary before the date of enactment
of the Farm Security and Rural Investment Act of 2002
may continue to provide technical assistance under this
section until the date on which the Secretary establishes
the system described in paragraph (1).
‘‘(B) EVALUATION.—If a person described in subpara-
graph (A) seeks to continue to provide technical assistance
after the date referred to in subparagraph (A), the Sec-
retary shall evaluate the person using criteria referred
to in paragraph (1).
‘‘(4) NON-FEDERAL ASSISTANCE.—The Secretary may request
the services of, and enter into cooperative agreements or con-
tracts with, non-Federal entities to assist the Secretary in
providing technical assistance necessary to develop and imple-
ment conservation programs under this title.’’.
SEC. 2702. REGULATIONS.
(a) IN GENERAL.—Except as otherwise provided in this title
or an amendment made by this title, not later than 90 days after
the date of enactment of this Act, the Secretary of Agriculture,
in consultation with the Commodity Credit Corporation, shall
promulgate such regulations as are necessary to implement this
title.
H. R. 2646—147
(b) APPLICABLE AUTHORITY.—The promulgation of regulations
under subsection (a) and administration of this title—
(1) shall—
(A) be carried out without regard to chapter 35 of
title 44, United States Code (commonly known as the
Paperwork Reduction Act); and
(B) the Statement of Policy of the Secretary of Agri-
culture effective July 24, 1971 (36 Fed. Reg. 13804) relating
to notices of proposed rulemaking and public participation
in rulemaking; and
(2) may—
(A) be promulgated with an opportunity for notice and
comment; or
(B) if determined to be appropriate by the Secretary
of Agriculture or the Commodity Credit Corporation, as
an interim rule effective on publication with an opportunity
for notice and comment.
(c) CONGRESSIONAL REVIEW OF AGENCY RULEMAKING.—In car-
rying out this section, the Secretary shall use the authority provided
under section 808(2) of title 5, United States Code.
TITLE III—TRADE
Subtitle A—Agricultural Trade Develop-
ment and Assistance Act of 1954 and Re-
lated Statutes
SEC. 3001. UNITED STATES POLICY.
Section 2 of the Agricultural Trade Development and Assistance
Act of 1954 (7 U.S.C. 1691) is amended—
(1) in paragraph (4), by striking ‘‘and’’ at the end;
(2) in paragraph (5), by striking the period at the end
and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(6) prevent conflicts.’’.
SEC. 3002. PROVISION OF AGRICULTURAL COMMODITIES.
Section 202 of the Agricultural Trade Development and Assist-
ance Act of 1954 (7 U.S.C. 1722) is amended—
(1) in subsection (b), by adding at the end the following:
‘‘(3) PROGRAM DIVERSITY.—The Administrator shall—
‘‘(A) encourage eligible organizations to propose and
implement program plans to address 1 or more aspects
of the program under section 201; and
‘‘(B) consider proposals that incorporate a variety of
program objectives and strategic plans based on the identi-
fication by eligible organizations of appropriate activities,
consistent with section 201, to assist development of foreign
countries.’’;
(2) in subsection (e)(1), by striking ‘‘not less than
$10,000,000, and not more than $28,000,000,’’ and inserting
‘‘not less than 5 percent nor more than 10 percent of the
funds’’; and
(3) by adding at the end the following:
‘‘(h) STREAMLINED PROGRAM MANAGEMENT.—
H. R. 2646—148
‘‘(1) IMPROVEMENTS.—Not later than 1 year after the date
of enactment of this subsection, the Administrator shall—
‘‘(A) streamline program procedures and guidelines
under this title for agreements with eligible organizations
for programs in 1 or more countries; and
‘‘(B) effective beginning with fiscal year 2004, to the
maximum extent practicable, incorporate the changes into
the procedures and guidelines for programs and the guide-
lines for resource requests.
‘‘(2) STREAMLINED PROCEDURES AND GUIDELINES.—In car-
rying out paragraph (1), the Administrator shall make improve-
ments in the Office of Food for Peace management systems
that include—
‘‘(A) expedition of and greater consistency in the pro-
gram review and approval process under this title;
‘‘(B) 
streamlining 
of 
information 
collection 
and
reporting systems by identifying the critical information
that needs to be monitored and reported on by eligible
organizations; and
‘‘(C) for approved programs, provision of greater flexi-
bility for an eligible organization to make modifications
in program activities to achieve program results with
streamlined procedures for reporting such modifications.
‘‘(3) CONSULTATION.—
‘‘(A) IN GENERAL.—Paragraphs (1) and (2) shall be car-
ried out in accordance with section 205 and subsections
(b) and (c) of section 207.
‘‘(B) CONSULTATION
WITH
CONGRESSIONAL
COMMIT-
TEES.—Not later than 180 days after the date of enactment
of this subsection, the Administrator shall consult with
the Committee on Agriculture and the Committee on Inter-
national Relations of the House of Representatives and
the Committee on Agriculture, Nutrition, and Forestry of
the Senate on progress made in carrying out this sub-
section.
‘‘(4) REPORT.—Not later than 270 days after the date of
enactment of this subsection, the Administrator shall submit
to the Committee on Agriculture and the Committee on Inter-
national Relations of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry of the
Senate a report on the improvements made and planned
upgrades in the information management, procurement, and
financial management systems to administer this title.’’.
SEC. 3003. GENERATION AND USE OF CURRENCIES BY PRIVATE VOL-
UNTARY ORGANIZATIONS AND COOPERATIVES.
Section 203 of the Agricultural Trade Development and Assist-
ance Act of 1954 (7 U.S.C. 1723) is amended—
(1) in the section heading, by striking ‘‘FOREIGN’’;
(2) in subsection (a), by striking ‘‘the recipient country,
or in a country’’ and inserting ‘‘1 or more recipient countries,
or 1 or more countries’’;
(3) in subsection (b)—
(A) by striking ‘‘in recipient countries, or in countries’’
and inserting ‘‘1 or more recipient countries, or in 1 or
more countries’’; and
(B) by striking ‘‘foreign currency’’;
H. R. 2646—149
(4) in subsection (c)—
(A) by striking ‘‘foreign currency’’; and
(B) by striking ‘‘the recipient country, or in a country’’
and inserting ‘‘1 or more recipient countries, or in 1 or
more countries’’; and
(5) in subsection (d)—
(A) by striking ‘‘Foreign currencies’’ and inserting ‘‘Pro-
ceeds’’;
(B) in paragraph (2)—
(i) by striking ‘‘income generating’’ and inserting
‘‘income-generating’’; and
(ii) by striking ‘‘the recipient country or within
a country’’ and inserting ‘‘1 or more recipient countries
or within 1 or more countries’’; and
(C) in paragraph (3)—
(i) by inserting a comma after ‘‘invested’’; and
(ii) by inserting a comma after ‘‘used’’.
SEC. 3004. LEVELS OF ASSISTANCE.
Section 204(a) of the Agricultural Trade Development and
Assistance Act of 1954 (7 U.S.C. 1724(a)) is amended—
(1) by striking ‘‘1996 through 2002’’ each place it appears
and inserting ‘‘2002 through 2007’’;
(2) in paragraph (1), by striking ‘‘2,025,000’’ and inserting
‘‘2,500,000’’; and
(3) in paragraph (2), by striking ‘‘1,550,000 metric tons’’
and inserting ‘‘1,875,000 metric tons’’.
SEC. 3005. FOOD AID CONSULTATIVE GROUP.
Section 205(f) of the Agricultural Trade Development and
Assistance Act of 1954 (7 U.S.C. 1725(f)) is amended by striking
‘‘2002’’ and inserting ‘‘2007’’.
SEC. 3006. MAXIMUM LEVEL OF EXPENDITURES.
Section 206 of the Agricultural Trade Development and Assist-
ance Act of 1954 (7 U.S.C. 1726) is repealed.
SEC. 3007. ADMINISTRATION.
Section 207 of the Agricultural Trade Development and Assist-
ance Act of 1954 (7 U.S.C. 1726a) is amended—
(1) in subsection (a)—
(A) by redesignating paragraph (2) as paragraph (3);
and
(B) by striking paragraph (1) and inserting the fol-
lowing:
‘‘(1) RECIPIENT COUNTRIES.—A proposal to enter into a non-
emergency food assistance agreement under this title shall
identify the recipient country or countries that are the subject
of the agreement.
‘‘(2) TIMING.—Not later than 120 days after the date of
receipt by the Administrator of a proposal submitted by an
eligible organization under this title, the Administrator shall
determine whether to accept the proposal.’’;
(2) in subsection (b), by striking ‘‘guideline’’ each place
it appears and inserting ‘‘guideline or annual policy guidance’’;
and
(3) by adding at the end the following:
‘‘(e) TIMELY APPROVAL.—
H. R. 2646—150
‘‘(1) IN
GENERAL.—The Administrator is encouraged to
finalize program agreements and resource requests for pro-
grams under this section before the beginning of each fiscal
year.
‘‘(2) REPORT.—Not later than December 1 of each year,
the Administrator shall submit to the Committee on Agriculture
and the Committee on International Relations of the House
of Representatives and the Committee on Agriculture, Nutri-
tion, and Forestry of the Senate a report that contains—
‘‘(A) a list of programs, countries, and commodities
approved to date for assistance under this section; and
‘‘(B) a statement of the total amount of funds approved
to date for transportation and administrative costs under
this section.’’.
SEC. 3008. ASSISTANCE FOR STOCKPILING AND RAPID TRANSPOR-
TATION, DELIVERY, AND DISTRIBUTION OF SHELF-
STABLE PREPACKAGED FOODS.
Section 208(f) of the Agricultural Trade Development and
Assistance Act of 1954 (7 U.S.C. 1726b(f)) is amended by striking
‘‘and 2002’’ and inserting ‘‘through 2007’’.
SEC. 3009. SALE PROCEDURE.
(a) IN
GENERAL.—Section 403 of the Agricultural Trade
Development and Assistance Act of 1954 (7 U.S.C. 1733) is
amended—
(1) in subsection (e)—
(A) by striking ‘‘In carrying’’ and inserting the fol-
lowing:
‘‘(1) IN GENERAL.—In carrying’’; and
(B) by adding at the end the following:
‘‘(2) SALE
PRICE.—Sales of agricultural commodities
described in paragraph (1) shall be made at a reasonable
market price in the economy where the agricultural commodity
is to be sold, as determined by the Secretary or the Adminis-
trator, as appropriate.’’; and
(2) by adding at the end the following:
‘‘(l) SALE PROCEDURE.—
‘‘(1) IN GENERAL.—Subsections (b) and (h) shall apply to
sales of commodities in recipient countries to generate proceeds
to carry out projects under—
‘‘(A) titles I and II;
‘‘(B) section 416(b) of the Agricultural Act of 1949
(7 U.S.C. 1431(b)); and
‘‘(C) the Food for Progress Act of 1985 (7 U.S.C. 1736o).
‘‘(2) CURRENCY.—A sale described in paragraph (1) may
be made in United States dollars or other currencies.’’.
(b) CONFORMING AMENDMENTS.—
(1) Section 416(b) of the Agricultural Act of 1949 (7 U.S.C.
1431(b)) is amended by adding at the end the following:
‘‘(10) SALE PROCEDURE.—In approving sales of commodities
under this subsection, the Secretary shall follow the sale proce-
dure described in section 403(l) of the Agricultural Trade
Development and Assistance Act of 1954.’’.
(2) Subsection (f) of the Food for Progress Act of 1985
(7 U.S.C. 1736o(f)) is amended by adding at the end the fol-
lowing:
H. R. 2646—151
‘‘(5) SALE PROCEDURE.—In making sales of eligible commod-
ities under this section, the Secretary shall follow the sale
procedure described in section 403(l) of the Agricultural Trade
Development and Assistance Act of 1954.’’.
SEC. 3010. PREPOSITIONING.
Section 407(c)(4) of the Agricultural Trade Development and
Assistance Act of 1954 (7 U.S.C. 1736a(c)(4)) is amended by striking
‘‘and 2002’’ and inserting ‘‘through 2007’’.
SEC. 3011. TRANSPORTATION AND RELATED COSTS.
Section 407(c)(1) of the Agricultural Trade Development and
Assistance Act of 1954 (7 U.S.C. 1736a(c)(1)) is amended—
(1) by striking ‘‘The Administrator’’ and inserting the fol-
lowing:
‘‘(A) IN GENERAL.—The Administrator’’; and
(2) by adding at the end the following:
‘‘(B) CERTAIN
COMMODITIES
MADE
AVAILABLE
FOR
NON-
EMERGENCY ASSISTANCE.—In the case of agricultural commod-
ities made available for nonemergency assistance under title
II for least developed countries that meet the poverty and
other eligibility criteria established by the International Bank
for Reconstruction and Development for financing under the
International Development Association, the Administrator may
pay the transportation costs incurred in moving the agricultural
commodities from designated points of entry or ports of entry
abroad to storage and distribution sites and associated storage
and distribution costs.’’.
SEC. 3012. EXPIRATION DATE.
Section 408 of the Agricultural Trade Development and Assist-
ance Act of 1954 (7 U.S.C. 1736b) is amended by striking ‘‘2002’’
and inserting ‘‘2007’’.
SEC. 3013. MICRONUTRIENT FORTIFICATION PROGRAMS.
Section 415 of the Agricultural Trade Development and Assist-
ance Act of 1954 (7 U.S.C. 1736g–2) is amended—
(1) in the section heading, by striking ‘‘PILOT PROGRAM.’’
and inserting ‘‘PROGRAMS.’’;
(2) in subsection (a)—
(A) by redesignating paragraphs (1) and (2) as subpara-
graphs (A) and (B), respectively, and adjusting the margins
appropriately;
(B) by striking the first sentence and inserting the
following:
‘‘(1) PROGRAMS.—Not later than September 30, 2003, the
Administrator, in consultation with the Secretary, shall estab-
lish micronutrient fortification programs.’’; and
(C) in the second sentence, by striking ‘‘The purpose
of the program’’ and inserting the following:
‘‘(2) PURPOSE.—The purpose of a program’’; and
(D) in paragraph (2) (as designated by subparagraph
(C))—
(i) in subparagraph (A), by striking ‘‘and’’ at the
end;
(ii) in subparagraph (B)—
(I) by striking ‘‘whole’’; and
H. R. 2646—152
(II) by striking the period at the end and
inserting ‘‘; and’’; and
(iii) by adding at the end the following:
‘‘(C) assess and apply technologies and systems to
improve and ensure the quality, shelf life, bioavailability,
and safety of fortified food aid commodities, and products
of those commodities, that are provided to developing coun-
tries, by using the same mechanism that was used to
assess the micronutrient fortification program in the report
entitled ‘Micronutrient Compliance Review of Fortified P.L.
480 Commodities’, published October 2001 with funds from
the Bureau for Humanitarian Response of the United
States Agency for International Development.’’;
(3) in subsection (b), by striking ‘‘the pilot program’’ and
inserting ‘‘a program under this section’’;
(4) in the first sentence of subsection (c)—
(A) by striking ‘‘the pilot program, whole’’ and inserting
‘‘a program,’’;
(B) by striking ‘‘the pilot program may’’ and inserting
‘‘a program may’’;
(C) by striking ‘‘including’’ and inserting ‘‘such as’’;
and
(D) by striking ‘‘and iodine’’ and inserting ‘‘iodine, and
folic acid’’; and
(5) in subsection (d)—
(A) by striking ‘‘the pilot program’’ and inserting ‘‘pro-
grams’’; and
(B) by striking ‘‘2002’’ and inserting ‘‘2007’’.
SEC. 3014. JOHN OGONOWSKI FARMER-TO-FARMER PROGRAM.
Section 501 of the Agricultural Trade Development and Assist-
ance Act of 1954 (7 U.S.C. 1737) is amended to read as follows:
‘‘SEC. 501. JOHN OGONOWSKI FARMER-TO-FARMER PROGRAM.
‘‘(a) DEFINITIONS.—In this section:
‘‘(1) CARIBBEAN
BASIN
COUNTRY.—The term ‘Caribbean
Basin country’ means a country eligible for designation as
a beneficiary country under section 212 of the Caribbean Basin
Economic Recovery Act (19 U.S.C. 2702).
‘‘(2) EMERGING
MARKET.—The term ‘emerging market’
means a country that the Secretary determines—
‘‘(A) is taking steps toward a market-oriented economy
through the food, agriculture, or rural business sectors
of the economy of the country; and
‘‘(B) has the potential to provide a viable and signifi-
cant market for United States agricultural commodities
or products of United States agricultural commodities.
‘‘(3) MIDDLE INCOME COUNTRY.—The term ‘middle income
country’ means a country that has developed economically to
the point at which the country does not receive bilateral
development assistance from the United States.
‘‘(4) SUB-SAHARAN AFRICAN COUNTRY.—The term ‘sub-Saha-
ran African country’ has the meaning given the term in section
107 of the Trade and Development Act of 2000 (19 U.S.C.
3706).
‘‘(b) PROVISION.—Notwithstanding any other provision of law,
to further assist developing countries, middle-income countries,
emerging markets, sub-Saharan African countries, and Caribbean
H. R. 2646—153
Basin countries to increase farm production and farmer incomes,
the President may—
‘‘(1) establish and administer a program, to be known as
the ‘John Ogonowski Farmer-to-Farmer Program’, of farmer-
to-farmer assistance between the United States and such coun-
tries to assist in—
‘‘(A) increasing food production and distribution; and
‘‘(B) improving the effectiveness of the farming and
marketing operations of agricultural producers in those
countries;
‘‘(2) 
use 
United 
States 
agricultural 
producers,
agriculturalists, colleges and universities (including historically
black colleges and universities, land grant colleges or univer-
sities, and foundations maintained by colleges or universities),
private agribusinesses, private organizations (including grass-
roots organizations with an established and demonstrated
capacity to carry out such a bilateral exchange program), pri-
vate corporations, and nonprofit farm organizations to work
in conjunction with agricultural producers and farm organiza-
tions in those countries, on a voluntary basis—
‘‘(A) to improve agricultural and agribusiness oper-
ations and agricultural systems in those countries,
including improving—
‘‘(i) animal care and health;
‘‘(ii) field crop cultivation;
‘‘(iii) fruit and vegetable growing;
‘‘(iv) livestock operations;
‘‘(v) food processing and packaging;
‘‘(vi) farm credit;
‘‘(vii) marketing;
‘‘(viii) inputs; and
‘‘(ix) agricultural extension; and
‘‘(B) to strengthen cooperatives and other agricultural
groups in those countries;
‘‘(3) transfer the knowledge and expertise of United States
agricultural producers and businesses, on an individual basis,
to those countries while enhancing the democratic process by
supporting private and public agriculturally related organiza-
tions that request and support technical assistance activities
through cash and in-kind services;
‘‘(4) to the maximum extent practicable, make grants to
or enter into contracts or other cooperative agreements with
private voluntary organizations, cooperatives, land grant
universities, private agribusiness, or nonprofit farm organiza-
tions to carry out this section (except that any such contract
or other agreement may obligate the United States to make
outlays only to the extent that the budget authority for such
outlays is available under subsection (d) or has otherwise been
provided in advance in appropriation Acts);
‘‘(5) coordinate programs established under this section
with other foreign assistance programs and activities carried
out by the United States; and
‘‘(6) to the extent that local currencies can be used to
meet the costs of a program established under this section,
augment funds of the United States that are available for
such a program through the use, within the country in which
the program is being conducted, of—
H. R. 2646—154
‘‘(A) foreign currencies that accrue from the sale of
agricultural commodities and products under this Act; and
‘‘(B) local currencies generated from other types of
foreign assistance activities.
‘‘(c) SPECIAL EMPHASIS ON SUB-SAHARAN AFRICAN AND CARIB-
BEAN BASIN COUNTRIES.—
‘‘(1) FINDINGS.—Congress finds that—
‘‘(A) agricultural producers in sub-Saharan African and
Caribbean Basin countries need training in agricultural
techniques that are appropriate for the majority of eligible
agricultural producers in those countries, including training
in—
‘‘(i) standard growing practices;
‘‘(ii) insecticide and sanitation procedures; and
‘‘(iii) other agricultural methods that will produce
increased yields of more nutritious and healthful crops;
‘‘(B) agricultural producers in the United States
(including African-American agricultural producers) and
banking and insurance professionals have agribusiness
expertise that would be invaluable for agricultural pro-
ducers in sub-Saharan African and Caribbean Basin coun-
tries;
‘‘(C) a commitment by the United States is appropriate
to support the development of a comprehensive agricultural
skills training program for those agricultural producers
that focuses on—
‘‘(i) improving knowledge of insecticide and sanita-
tion procedures to prevent crop destruction;
‘‘(ii) teaching modern agricultural techniques that
would facilitate a continual analysis of crop production,
including—
‘‘(I) the identification and development of
standard growing practices; and
‘‘(II) the establishment of systems for record-
keeping;
‘‘(iii) the use and maintenance of agricultural
equipment that is appropriate for the majority of
eligible agricultural producers in sub-Saharan African
or Caribbean Basin countries;
‘‘(iv) the expansion of small agricultural operations
into agribusiness enterprises by increasing access to
credit for agricultural producers through—
‘‘(I) the development and use of village banking
systems; and
‘‘(II) the use of agricultural risk insurance pilot
products; and
‘‘(v) marketing crop yields to prospective pur-
chasers (including businesses and individuals) for local
needs and export; and
‘‘(D) programs that promote the exchange of agricul-
tural knowledge and expertise through the exchange of
American and foreign agricultural producers have been
effective in promoting improved agricultural techniques and
food security and the extension of additional resources to
such farmer-to-farmer exchanges is warranted.
‘‘(2) GOALS FOR PROGRAMS CARRIED OUT IN SUB-SAHARAN
AFRICAN AND CARIBBEAN COUNTRIES.—The goals of programs
H. R. 2646—155
carried out under this section in sub-Saharan African and
Caribbean Basin countries shall be—
‘‘(A) to expand small agricultural operations in those
countries into agribusiness enterprises by increasing access
to credit for agricultural producers through—
‘‘(i) the development and use of village banking
systems; and
‘‘(ii) the use of agricultural risk insurance pilot
products;
‘‘(B) to provide training to agricultural producers in
those countries that will—
‘‘(i) enhance local food security; and
‘‘(ii) help mitigate and alleviate hunger;
‘‘(C) to provide training to agricultural producers in
those countries in groups to encourage participants to share
and pass on to other agricultural producers in the home
communities of the participants, the information and skills
obtained from the training, rather than merely retaining
the information and skills for the personal enrichment
of the participants; and
‘‘(D) to maximize the number of beneficiaries of the
programs in sub-Saharan African and Caribbean Basin
countries.
‘‘(d) MINIMUM FUNDING.—Notwithstanding any other provision
of law, in addition to any funds that may be specifically appro-
priated to carry out this section, not less than 0.5 percent of the
amounts made available for each of fiscal years 2002 through 2007
to carry out this Act shall be used to carry out programs under
this section, with—
‘‘(1) not less than 0.2 percent to be used for programs
in developing countries; and
‘‘(2) not less than 0.1 percent to be used for programs
in sub-Saharan African and Caribbean Basin countries.
‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—
‘‘(1) IN GENERAL.—There is authorized to be appropriated
to carry out programs under this section in sub-Saharan African
and Caribbean Basin countries $10,000,000 for each of fiscal
years 2002 through 2007.
‘‘(2) ADMINISTRATIVE COSTS.—Not more than 5 percent of
the funds made available for a fiscal year under paragraph
(1) may be used to pay administrative costs incurred in carrying
out programs in sub-Saharan African and Caribbean Basin
countries.’’.
Subtitle B—Agricultural Trade Act of 1978
SEC. 3101. EXPORTER ASSISTANCE INITIATIVE.
Title I of the Agricultural Trade Act of 1978 (7 U.S.C. 5601
et seq.) is amended by adding at the end the following:
‘‘SEC. 107. EXPORTER ASSISTANCE INITIATIVE.
‘‘To provide a comprehensive source of information to facilitate
exports of United States agricultural commodities, the Secretary
shall maintain on a website on the Internet information to assist
exporters and potential exporters of United States agricultural
commodities.’’.
H. R. 2646—156
SEC. 3102. EXPORT CREDIT GUARANTEE PROGRAM.
(a) TERMS OF SUPPLIER CREDIT PROGRAM.—Section 202(a) of
the Agricultural Trade Act of 1978 (7 U.S.C. 5622(a)) is amended
by adding at the end the following:
‘‘(3) EXTENDED SUPPLIER CREDITS.—
‘‘(A) IN GENERAL.—Subject to the appropriation of funds
under subparagraph (B), in carrying out this section, the
Commodity Credit Corporation may issue guarantees for
the repayment of credit made available for a period of
more than 180 days, but not more than 360 days, by
a United States exporter to a buyer in a foreign country.
‘‘(B) AUTHORIZATION
OF
APPROPRIATIONS.—There are
authorized to be appropriated such sums as are necessary
to fund the additional costs attributable to the portion
of any guarantee issued under this paragraph to cover
the repayment of credit beyond the initial 180-day period.’’.
(b) PROCESSED AND HIGH-VALUE PRODUCTS.—Section 202(k)(1)
of the Agricultural Trade Act of 1978 (7 U.S.C. 5622(k)(1)) is
amended by striking ‘‘, 2001, and 2002’’ and inserting ‘‘through
2007’’.
(c) REPORT.—Section 202 of the Agricultural Trade Act of 1978
(7 U.S.C. 5622) is amended by adding at the end the following:
‘‘(l) CONSULTATION
ON AGRICULTURAL EXPORT CREDIT PRO-
GRAMS.—The Secretary and the United States Trade Representative
shall consult on a regular basis with the Committee on Agriculture,
and the Committee on International Relations, of the House of
Representatives and the Committee on Agriculture, Nutrition, and
Forestry of the Senate on the status of multilateral negotiations
regarding agricultural export credit programs.’’.
(d) REAUTHORIZATION.—Section 211(b)(1) of the Agricultural
Trade Act of 1978 (7 U.S.C. 5641(b)(1)) is amended by striking
‘‘2002’’ and inserting ‘‘2007’’.
SEC. 3103. MARKET ACCESS PROGRAM.
Section 211(c) of the Agricultural Trade Act of 1978 (7 U.S.C.
5641(c)) is amended—
(1) by redesignating paragraphs (1) and (2) as subpara-
graphs (A) and (B), respectively, and indenting appropriately;
(2) by striking ‘‘The Commodity’’ and inserting the fol-
lowing:
‘‘(1) IN GENERAL.—The Commodity’’;
(3) by striking subparagraph (A) (as so redesignated) and
inserting the following:
‘‘(A) in addition to any funds that may be specifically
appropriated to implement a market access program, not
more than $90,000,000 for fiscal year 2001, $100,000,000
for fiscal year 2002, $110,000,000 for fiscal year 2003,
$125,000,000 for fiscal year 2004, $140,000,000 for fiscal
year 2005, and $200,000,000 for each of fiscal years 2006
and 2007, of the funds of, or an equal value of commodities
owned by, the Commodity Credit Corporation; and’’; and
(4) by adding at the end the following:
‘‘(2) PROGRAM
PRIORITIES.—In providing any amount of
funds made available under paragraph (1)(A) for any fiscal
year that is in excess of the amount made available under
paragraph (1)(A) for fiscal year 2001, the Secretary shall, to
the maximum extent practicable—
H. R. 2646—157
‘‘(A) give equal consideration to—
‘‘(i) proposals submitted by organizations that were
participating organizations in prior fiscal years; and
‘‘(ii) proposals submitted by eligible trade organiza-
tions that have not previously participated in the pro-
gram established under this title; and
‘‘(B) give equal consideration to—
‘‘(i) proposals submitted for activities in emerging
markets; and
‘‘(ii) proposals submitted for activities in markets
other than emerging markets.’’.
SEC. 3104. EXPORT ENHANCEMENT PROGRAM.
(a) IN GENERAL.—Section 301(e)(1)(G) of the Agricultural Trade
Act of 1978 (7 U.S.C. 5651(e)(1)(G)) is amended by striking ‘‘fiscal
year 2002’’ and inserting ‘‘each of fiscal years 2002 through 2007’’.
(b) UNFAIR TRADE PRACTICES.—Section 102(5)(A) of the Agricul-
tural Trade Act of 1978 (7 U.S.C. 5602(5)(A)) is amended—
(1) in clause (i), by striking ‘‘or’’ at the end; and
(2) by striking clause (ii) and inserting the following:
‘‘(ii) in the case of a monopolistic state trading
enterprise engaged in the export sale of an agricultural
commodity, implements a pricing practice that is incon-
sistent with sound commercial practice;
‘‘(iii) provides a subsidy that—
‘‘(I) decreases market opportunities for United
States exports; or
‘‘(II) unfairly distorts an agricultural market
to the detriment of United States exporters;
‘‘(iv) imposes an unfair technical barrier to trade,
including—
‘‘(I) a trade restriction or commercial require-
ment (such as a labeling requirement) that
adversely affects a new technology (including bio-
technology); and
‘‘(II) an unjustified sanitary or phytosanitary
restriction (including any restriction that, in viola-
tion of the Uruguay Round Agreements, is not
based on scientific principles;
‘‘(v) imposes a rule that unfairly restricts imports
of United States agricultural commodities in the
administration of tariff rate quotas; or
‘‘(vi) fails to adhere to, or circumvents any obliga-
tion under, any provision of a trade agreement with
the United States.’’.
SEC. 3105. FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM.
(a) VALUE-ADDED PRODUCTS.—
(1) IN GENERAL.—Section 702(a) of the Agricultural Trade
Act of 1978 (7 U.S.C. 5722(a)) is amended by inserting ‘‘,
with a continued significant emphasis on the importance of
the export of value-added United States agricultural products
into emerging markets’’ after ‘‘products’’.
(2) REPORT TO CONGRESS.—Section 702 of the Agricultural
Trade Act of 1978 (7 U.S.C. 5722) is amended by adding at
the end the following:
‘‘(c) REPORT
TO
CONGRESS.—The Secretary shall annually
submit to the Committee on Agriculture and the Committee on
H. R. 2646—158
International Relations of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry of the Senate
a report on activities under this section describing the amount
of funding provided, the types of programs funded, the value-added
products that have been targeted, and the foreign markets for
those products that have been developed.’’.
(b) FUNDING.—Section 703 of the Agricultural Trade Act of
1978 (7 U.S.C. 5723) is amended to read as follows:
‘‘SEC. 703. FUNDING.
‘‘(a) IN GENERAL.—To carry out this title, the Secretary shall
use funds of the Commodity Credit Corporation, or commodities
of the Commodity Credit Corporation of a comparable value, in
the amount of $34,500,000 for each of fiscal years 2002 through
2007.
‘‘(b) PROGRAM PRIORITIES.—In providing any amount of funds
or commodities made available under subsection (a) for any fiscal
year that is in excess of the amount made available under this
section for fiscal year 2001, the Secretary shall, to the maximum
extent practicable—
‘‘(1) give equal consideration to—
‘‘(A) proposals submitted by organizations that were
participating organizations in prior fiscal years; and
‘‘(B) proposals submitted by eligible trade organizations
that have not previously participated in the program estab-
lished under this title; and
‘‘(2) give equal consideration to—
‘‘(A) proposals submitted for activities in emerging mar-
kets; and
‘‘(B) proposals submitted for activities in markets other
than emerging markets.’’.
SEC. 3106. FOOD FOR PROGRESS.
(a) IN GENERAL.—Subsections (f)(3), (k), and (l)(1) of the Food
for Progress Act of 1985 (7 U.S.C. 1736o) are each amended by
striking ‘‘2002’’ and inserting ‘‘2007’’.
(b) DEFINITIONS; PROGRAM.—
(1) IN GENERAL.—The Food for Progress Act of 1985 (7
U.S.C. 1736o) is amended by striking subsections (b) and (c)
and inserting the following:
‘‘(b) DEFINITIONS.—In this section:
‘‘(1) COOPERATIVE.—The term ‘cooperative’ has the meaning
given the term in section 402 of the Agricultural Trade Develop-
ment and Assistance Act of 1954 (7 U.S.C. 1732).
‘‘(2) CORPORATION.—The term ‘Corporation’ means the
Commodity Credit Corporation.
‘‘(3) DEVELOPING COUNTRY.—The term ‘developing country’
has the meaning given the term in section 402 of the Agricul-
tural Trade Development and Assistance Act of 1954 (7 U.S.C.
1732).
‘‘(4) ELIGIBLE COMMODITY.—The term ‘eligible commodity’
means an agricultural commodity, or a product of an agricul-
tural commodity, in inventories of the Corporation or acquired
by the President or the Corporation for disposition through
commercial purchases under a program authorized under this
section.
‘‘(5) ELIGIBLE ENTITY.—The term ‘eligible entity’ means—
H. R. 2646—159
‘‘(A) the government of an emerging agricultural
country;
‘‘(B) an intergovernmental organization;
‘‘(C) a private voluntary organization;
‘‘(D) a nonprofit agricultural organization or coopera-
tive;
‘‘(E) a nongovernmental organization; and
‘‘(F) any other private entity.
‘‘(6) FOOD SECURITY.—The term ‘food security’ means access
by all people at all times to sufficient food and nutrition for
a healthy and productive life.
‘‘(7) NONGOVERNMENTAL
ORGANIZATION.—The term ‘non-
governmental organization’ has the meaning given the term
in section 402 of the Agricultural Trade Development and
Assistance Act of 1954 (7 U.S.C. 1732).
‘‘(8) PRIVATE VOLUNTARY ORGANIZATION.—The term ‘private
voluntary organization’ has the meaning given the term in
section 402 of the Agricultural Trade Development and Assist-
ance Act of 1954 (7 U.S.C. 1732).
‘‘(9) PROGRAM.—The term ‘program’ means a food assist-
ance or development initiative proposed by an eligible entity
and approved by the President under this section.
‘‘(c) PROGRAM.—In order to use the food resources of the United
States more effectively in support of developing countries, and
countries that are emerging democracies that have made commit-
ments to introduce or expand free enterprise elements in their
agricultural economies through changes in commodity pricing, mar-
keting, input availability, distribution, and private sector involve-
ment, the President may enter into agreements with eligible entities
to furnish to the countries eligible commodities made available
under subsections (e) and (f).’’.
(2) CONFORMING AMENDMENTS.—The Food for Progress Act
of 1985 (7 U.S.C. 136o) is amended—
(A) in the first sentence of subsection (d), by striking
‘‘food’’;
(B) in subsection (l)(2), by striking ‘‘agricultural’’;
(C) in subsection (m)(1), by striking ‘‘these’’;
(D) in subsections (d), (e), (f), (h), (j), (l), and (m),
by striking ‘‘commodities’’ each place it appears and
inserting ‘‘eligible commodities’’;
(E) in subsections (e), (f), and (l), by striking ‘‘Com-
modity Credit Corporation’’ each place it appears and
inserting ‘‘Corporation’’; and
(F) by striking subsection (o).
(c) CONSIDERATION FOR AGREEMENTS.—Subsection (d) of the
Food for Progress Act of 1985 (7 U.S.C. 1736o(d)) is amended
by striking ‘‘(d) In determining’’ and inserting ‘‘(d) CONSIDERATION
FOR AGREEMENTS.—In determining’’.
(d) FUNDING OF ELIGIBLE COMMODITIES.—Subsection (e) of the
Food for Progress Act of 1985 (7 U.S.C. 1736o(e)) is amended—
(1) by striking ‘‘(e)’’ and inserting ‘‘(e) FUNDING OF ELIGIBLE
COMMODITIES.—’’;
(2) in paragraph (2), by inserting ‘‘, and subsection (g)
does not apply to eligible commodities furnished on a grant
basis or on credit terms under that title’’ before the period
at the end; and
(3) by adding at the end the following:
H. R. 2646—160
‘‘(5) NO EFFECT ON DOMESTIC PROGRAMS.—The President
shall not make an eligible commodity available for disposition
under this section in any amount that will reduce the amount
of the eligible commodity that is traditionally made available
through donations to domestic feeding programs or agencies,
as determined by the President.’’.
(e) PROVISION OF ELIGIBLE COMMODITIES TO DEVELOPING COUN-
TRIES.—Subsection (f) of the Food for Progress Act of 1985 (7 U.S.C.
1736o(f)) is amended—
(1) by striking ‘‘(f)’’ and inserting ‘‘(f) PROVISION
OF
ELIGIBLE COMMODITIES TO DEVELOPING COUNTRIES.—’’; and
(2) in paragraph (3), by striking ‘‘$30,000,000 (or in the
case 
of 
fiscal 
year 
1999, 
$35,000,000)’’ 
and 
inserting
‘‘$40,000,000’’.
(f) MINIMUM TONNAGE.—The Food for Progress Act of 1985
is amended by striking subsection (g) (7 U.S.C. 1736o(g)) and
inserting the following:
‘‘(g) MINIMUM TONNAGE.—Subject to subsection (f)(3), not less
than 400,000 metric tons of eligible commodities may be provided
under this section for the program for each of fiscal years 2002
through 2007.’’.
(g) PROHIBITION ON RESALE OR TRANSSHIPMENT OF ELIGIBLE
COMMODITIES.—Subsection (h) of the Food for Progress Act of 1985
(7 U.S.C. 1736o(h)) is amended by striking ‘‘(h) An agreement’’
and inserting ‘‘(h) PROHIBITION ON RESALE OR TRANSSHIPMENT OF
ELIGIBLE COMMODITIES.—An agreement’’.
(h) DISPLACEMENT OF UNITED STATES COMMERCIAL SALES.—
Subsection (i) of the Food for Progress Act of 1985 (7 U.S.C. 1736o(i))
is amended by striking ‘‘(i) In entering’’ and inserting ‘‘(i) DISPLACE-
MENT OF UNITED STATES COMMERCIAL SALES.—In entering’’.
(i) MULTICOUNTRY OR MULTIYEAR BASIS.—Subsection (j) of the
Food for Progress Act of 1985 (7 U.S.C. 1736o(j)) is amended—
(1) by striking ‘‘(j) In carrying out this section, the President
may,’’ and inserting the following: ‘‘(j) MULTICOUNTRY
OR
MULTIYEAR BASIS.—
‘‘(1) IN GENERAL.—In carrying out this section, the Presi-
dent,’’;
(2) by striking ‘‘approve’’ and inserting ‘‘is encouraged to
approve’’;
(3) by striking ‘‘multiyear’’ and inserting ‘‘multicountry or
multiyear’’; and
(4) by adding at the end the following:
‘‘(2) DEADLINE FOR PROGRAM ANNOUNCEMENTS.—Before the
beginning of any fiscal year, the President shall, to the max-
imum extent practicable—
‘‘(A) make all determinations concerning program
agreements and resource requests for programs under this
section; and
‘‘(B) announce those determinations.
‘‘(3) REPORT.—Not later than December 1 of each fiscal
year, the President shall submit to the Committee on Agri-
culture of the House of Representatives and the Committee
on Agriculture, Nutrition, and Forestry of the Senate a list
of programs, countries, and eligible commodities, and the total
amount of funds for transportation and administrative costs,
approved to date for the fiscal year under this section.’’.
H. R. 2646—161
(j) EFFECTIVE AND TERMINATION DATES.—Subsection (k) of the
Food for Progress Act of 1985 (7 U.S.C. 1736o(k)) is amended
by striking ‘‘(k) This section’’ and inserting ‘‘(k) EFFECTIVE AND
TERMINATION DATES.—This section’’.
(k) ADMINISTRATIVE EXPENSES.—Subsection (l) of the Food for
Progress Act of 1985 (7 U.S.C. 1736o(l)) is amended—
(1) by striking ‘‘(l)’’ and inserting ‘‘(l) ADMINISTRATIVE
EXPENSES.—’’;
(2) in paragraph (1), by striking ‘‘$10,000,000’’ and inserting
‘‘$15,000,000’’;
(3) in paragraph (3), by striking ‘‘local currencies’’ and
inserting ‘‘proceeds’’; and
(4) by adding at the end the following:
‘‘(4) HUMANITARIAN OR DEVELOPMENT PURPOSES.—The Sec-
retary may authorize the use of proceeds to pay the costs
incurred by an eligible entity under this section for—
‘‘(A)(i) programs targeted at hunger and malnutrition;
or
‘‘(ii) development programs involving food security;
‘‘(B) transportation, storage, and distribution of eligible
commodities provided under this section; and
‘‘(C) administration, sales, monitoring, and technical
assistance.’’.
(l) PRESIDENTIAL APPROVAL.—Subsection (m) of the Food for
Progress Act of 1985 (7 U.S.C. 1736o(m)) is amended by striking
‘‘(m) In carrying’’ and inserting ‘‘(m) PRESIDENTIAL APPROVAL.—
In carrying’’.
(m) PROGRAM MANAGEMENT.—The Food for Progress Act of
1985 is amended by striking subsection (n) (7 U.S.C. 1736o(n))
and inserting the following:
‘‘(n) PROGRAM MANAGEMENT.—
‘‘(1) IN GENERAL.—The President shall ensure, to the max-
imum extent practicable, that each eligible entity participating
in 1 or more programs under this section—
‘‘(A) uses eligible commodities made available under
this section—
‘‘(i) in an effective manner;
‘‘(ii) in the areas of greatest need; and
‘‘(iii) in a manner that promotes the purposes of
this section;
‘‘(B) in using eligible commodities, assesses and takes
into account the needs of recipient countries and the target
populations of the recipient countries;
‘‘(C) works with recipient countries, and indigenous
institutions or groups in recipient countries, to design and
carry out mutually acceptable programs authorized under
this section; and
‘‘(D) monitors and reports on the distribution or sale
of eligible commodities provided under this section using
methods that, as determined by the President, facilitate
accurate and timely reporting.
‘‘(2) REQUIREMENTS.—
‘‘(A) IN GENERAL.—Not later than 270 days after the
date of enactment of this paragraph, the President shall
review and, as necessary, make changes in regulations
and internal procedures designed to streamline, improve,
H. R. 2646—162
and clarify the application, approval, and implementation
processes pertaining to agreements under this section.
‘‘(B) CONSIDERATIONS.—In conducting the review, the
President shall consider—
‘‘(i) revising procedures for submitting proposals;
‘‘(ii) developing criteria for program approval that
separately address the objectives of the program;
‘‘(iii) pre-screening organizations and proposals to
ensure that the minimum qualifications are met;
‘‘(iv) implementing e-government initiatives and
otherwise improving the efficiency of the proposal
submission and approval processes;
‘‘(v) upgrading information management systems;
‘‘(vi) improving commodity and transportation
procurement processes; and
‘‘(vii) ensuring that evaluation and monitoring
methods are sufficient.
‘‘(C) CONSULTATIONS.—Not later than 1 year after the
date of enactment of this paragraph, the President shall
consult with the Committee on Agriculture, and the Com-
mittee on International Relations, of the House of Rep-
resentatives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate on changes made in regulations
and procedures.
‘‘(3) REPORTS.—Each eligible entity that enters into an
agreement under this section shall submit to the President,
at such time as the President may request, a report containing
such information as the President may request relating to
the use of eligible commodities and funds furnished to the
eligible entity under this section.’’.
SEC. 3107. MCGOVERN-DOLE INTERNATIONAL FOOD FOR EDUCATION
AND CHILD NUTRITION PROGRAM.
(a) DEFINITION OF AGRICULTURAL COMMODITY.—In this section,
the term ‘‘agricultural commodity’’ means an agricultural com-
modity, or a product of an agricultural commodity, that is produced
in the United States.
(b) PROGRAM.—Subject to subsection (l), the President may
establish a program, to be known as ‘‘McGovern-Dole International
Food for Education and Child Nutrition Program’’, requiring the
procurement of agricultural commodities and the provision of finan-
cial and technical assistance to carry out—
(1) preschool and school food for education programs in
foreign countries to improve food security, reduce the incidence
of hunger, and improve literacy and primary education, particu-
larly with respect to girls; and
(2) maternal, infant, and child nutrition programs for preg-
nant women, nursing mothers, infants, and children who are
5 years of age or younger.
(c) ELIGIBLE COMMODITIES AND COST ITEMS.—Notwithstanding
any other provision of law—
(1) any agricultural commodity is eligible to be provided
under this section;
(2) as necessary to achieve the purposes of this section,
funds appropriated under this section may be used to pay—
(A)(i) the cost of acquiring agricultural commodities;
H. R. 2646—163
(ii) the costs associated with packaging, enrichment,
preservation, and fortification of agricultural commodities;
(iii) the processing, transportation, handling, and other
incidental costs up to the time of the delivery of agricultural
commodities free on board vessels in United States ports;
(iv) the vessel freight charges from United States ports
or designated Canadian transshipment ports, as deter-
mined by the Secretary, to designated ports of entry abroad;
(v) the costs associated with transporting agricultural
commodities from United States ports to designated points
of entry abroad in the case—
(I) of landlocked countries;
(II) of ports that cannot be used effectively because
of natural or other disturbances;
(III) of the unavailability of carriers to a specific
country; or
(IV) of substantial savings in costs or time that
may be effected by the utilization of points of entry
other than ports; and
(vi) the charges for general average contributions
arising out of the ocean transport of agricultural commod-
ities transferred pursuant thereto;
(B) all or any part of the internal transportation, stor-
age, and handling costs incurred in moving the eligible
commodity, if the President determines that—
(i) payment of the costs is appropriate; and
(ii) the recipient country is a low income, net food-
importing country that—
(I) meets the poverty criteria established by
the International Bank for Reconstruction and
Development for Civil Works Preference; and
(II) has a national government that is com-
mitted to or is working toward, through a national
action plan, the goals of the World Declaration
on Education for All convened in 1990 in Jomtien,
Thailand, and the followup Dakar Framework for
Action of the World Education Forum, convened
in 2000;
(C) the costs of activities conducted in the recipient
countries by a nonprofit voluntary organization, coopera-
tive, or intergovernmental agency or organization that
would enhance the effectiveness of the activities imple-
mented by such entities under this section; and
(D) the costs of meeting the allowable administrative
expenses of private voluntary organizations, cooperatives,
or intergovernmental organizations that are implementing
activities under this section.
(d) GENERAL AUTHORITIES.—The President shall designate 1
or more Federal agencies to—
(1) implement the program established under this section;
(2) ensure that the program established under this section
is consistent with the foreign policy and development assistance
objectives of the United States; and
(3) consider, in determining whether a country should
receive assistance under this section, whether the government
of the country is taking concrete steps to improve the preschool
and school systems in the country.
H. R. 2646—164
(e) ELIGIBLE ENTITIES.—Assistance may be provided under this
section to private voluntary organizations, cooperatives, intergov-
ernmental organizations, governments of developing countries and
their agencies, and other organizations.
(f) PROCEDURES.—
(1) IN GENERAL.—In carrying out subsection (b), the Presi-
dent shall ensure that procedures are established that—
(A) provide for the submission of proposals by eligible
entities, each of which may include 1 or more recipient
countries, for commodities and other assistance under this
section;
(B) provide for eligible commodities and assistance on
a multiyear basis;
(C) ensure that eligible entities demonstrate the
organizational capacity and the ability to develop, imple-
ment, monitor, report on, and provide accountability for
activities conducted under this section;
(D) provide for the expedited development, review, and
approval of proposals submitted in accordance with this
section;
(E) ensure monitoring and reporting by eligible entities
on the use of commodities and other assistance provided
under this section; and
(F) allow for the sale or barter of commodities by
eligible entities to acquire funds to implement activities
that improve the food security of women and children or
otherwise enhance the effectiveness of programs and activi-
ties authorized under this section.
(2) PRIORITIES
FOR
PROGRAM
FUNDING.—In carrying out
paragraph (1) with respect to criteria for determining the use
of commodities and other assistance provided for programs
and activities authorized under this section, the implementing
agency may consider the ability of eligible entities to—
(A) identify and assess the needs of beneficiaries, espe-
cially malnourished or undernourished mothers and their
children who are 5 years of age or younger, and school-
age children who are malnourished, undernourished, or
do not regularly attend school;
(B)(i) in the case of preschool and school-age children,
target low-income areas where children’s enrollment and
attendance in school is low or girls’ enrollment and partici-
pation in preschool or school is low, and incorporate
developmental objectives for improving literacy and pri-
mary education, particularly with respect to girls; and
(ii) in the case of programs to benefit mothers and
children who are 5 years of age or younger, coordinate
supplementary feeding and nutrition programs with
existing or newly-established maternal, infant, and children
programs 
that 
provide 
health-needs 
interventions,
including maternal, prenatal, and postnatal and newborn
care;
(C) involve indigenous institutions as well as local
communities and governments in the development and
implementation of the programs and activities to foster
local capacity building and leadership; and
H. R. 2646—165
(D) carry out multiyear programs that foster local self-
sufficiency and ensure the longevity of programs in the
recipient country .
(g) USE
OF FOOD
AND NUTRITION SERVICE.—The Food and
Nutrition Service of the Department of Agriculture may provide
technical advice on the establishment of programs under subsection
(b)(1) and on implementation of the programs in the field in
recipient countries.
(h) MULTILATERAL INVOLVEMENT.—
(1) IN GENERAL.—The President is urged to engage existing
international food aid coordinating mechanisms to ensure multi-
lateral commitments to, and participation in, programs similar
to programs supported under this section.
(2) REPORTS.—The President shall annually submit to the
Committee on International Relations and the Committee on
Agriculture of the House of Representatives and the Committee
on Agriculture, Nutrition, and Forestry of the Senate a report
on the commitments and activities of governments, including
the United States government, in the global effort to reduce
child hunger and increase school attendance.
(i) PRIVATE SECTOR INVOLVEMENT.—The President is urged to
encourage the support and active involvement of the private sector,
foundations, and other individuals and organizations in programs
assisted under this section.
(j) GRADUATION.—An agreement with an eligible organization
under this section shall include provisions—
(1) to—
(A) sustain the benefits to the education, enrollment,
and attendance of children in schools in the targeted
communities when the provision of commodities and assist-
ance to a recipient country under a program under this
section terminates; and
(B) estimate the period of time required until the
recipient country or eligible organization is able to provide
sufficient assistance without additional assistance under
this section; or
(2) to provide other long-term benefits to targeted popu-
lations of the recipient country.
(k) REQUIREMENT TO SAFEGUARD LOCAL PRODUCTION
AND
USUAL MARKETING.—The requirement of section 403(a) of the Agri-
cultural Trade Development and Assistance Act of 1954 (7 U.S.C.
1733(a)) applies with respect to the availability of commodities
under this section.
(l) FUNDING.—
(1) IN GENERAL.—Of the funds of the Commodity Credit
Corporation, the President shall use $100,000,000 for fiscal
year 2003 to carry out this section.
(2) AUTHORIZATION OF APPROPRIATIONS.—There are author-
ized to be appropriated such sums as are necessary to carry
out this section for each of fiscal years 2004 through 2007.
(3) ADMINISTRATIVE EXPENSES.—Funds made available to
carry out this section may be used to pay the administrative
expenses of any Federal agency implementing or assisting in
the implementation of this section.
H. R. 2646—166
Subtitle C—Miscellaneous
SEC. 3201. SURPLUS COMMODITIES FOR DEVELOPING OR FRIENDLY
COUNTRIES.
(a) USE OF CURRENCIES.—Section 416(b)(7)(D) of the Agricul-
tural Act of 1949 (7 U.S.C. 1431(b)(7)(D)) is amended—
(1) in clauses (i) and (iii), by striking ‘‘foreign currency’’
each place it appears;
(2) in clause (ii)—
(A) by striking ‘‘Foreign currencies’’ and inserting ‘‘Pro-
ceeds’’; and
(B) by striking ‘‘foreign currency’’; and
(3) in clause (iv)—
(A) by striking ‘‘Foreign currency proceeds’’ and
inserting ‘‘Proceeds’’;
(B) by striking ‘‘country of origin’’ the second place
it appears and all that follows through ‘‘as necessary to
expedite’’ and inserting ‘‘country of origin as necessary
to expedite’’;
(C) by striking ‘‘; or’’ and inserting a period; and
(D) by striking subclause (II).
(b) IMPLEMENTATION OF AGREEMENTS.—Section 416(b) of the
Agricultural Act of 1949 (7 U.S.C. 1431(b)) (as amended by section
3009(b)) is amended—
(1) in paragraph (8), by striking ‘‘(8)(A)’’ and all that follows
through ‘‘(B) The Secretary’’ and inserting the following:
‘‘(8) ADMINISTRATIVE PROVISIONS.—
‘‘(A) EXPEDITED PROCEDURES.—To the maximum extent
practicable, expedited procedures shall be used in the
implementation of this subsection.
‘‘(B) ESTIMATE OF COMMODITIES.—The Secretary shall
publish in the Federal Register, not later than October
31 of each fiscal year, an estimate of the types and quan-
tities of commodities and products that will be available
under this section for the fiscal year.
‘‘(C) FINALIZATION OF AGREEMENTS.—The Secretary is
encouraged to finalize program agreements under this sec-
tion not later than December 31 of each fiscal year.
‘‘(D) REGULATIONS.—The Secretary’’; and
(2) by adding at the end the following:
‘‘(11) REQUIREMENTS.—
‘‘(A) IN GENERAL.—Not later than 270 days after the
date of enactment of this subparagraph, the Secretary shall
review and, as necessary, make changes in regulations
and internal procedures designed to streamline, improve,
and clarify the application, approval, and implementation
processes pertaining to agreements under this section.
‘‘(B) CONSIDERATIONS.—In conducting the review, the
Secretary shall consider—
‘‘(i) revising procedures for submitting proposals;
‘‘(ii) developing criteria for program approval that
separately address the objectives of the program;
‘‘(iii) pre-screening organizations and proposals to
ensure that the minimum qualifications are met;
H. R. 2646—167
‘‘(iv) implementing e-government initiatives and
otherwise improving the efficiency of the proposal
submission and approval processes;
‘‘(v) upgrading information management systems;
‘‘(vi) improving commodity and transportation
procurement processes; and
‘‘(vii) ensuring that evaluation and monitoring
methods are sufficient.
‘‘(C) CONSULTATIONS.—Not later than 1 year after the
date of enactment of this subparagraph, the Secretary shall
consult with the Committee on Agriculture, and the Com-
mittee on International Relations, of the House of Rep-
resentatives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate on changes made in regulations
and procedures under this paragraph.’’.
SEC. 3202. BILL EMERSON HUMANITARIAN TRUST.
Section 302 of the Bill Emerson Humanitarian Trust Act (7
U.S.C. 1736f–1) is amended by striking ‘‘2002’’ each place it appears
in subsection (b)(2)(B)(i) and paragraphs (1) and (2) of subsection
(h) and inserting ‘‘2007’’.
SEC. 3203. EMERGING MARKETS.
Section 1542 of the Food, Agriculture, Conservation, and Trade
Act of 1990 (7 U.S.C. 5622 note) is amended in subsections (a)
and (d)(1)(A)(i) by striking ‘‘2002’’ and inserting ‘‘2007’’.
SEC. 3204. BIOTECHNOLOGY AND AGRICULTURAL TRADE PROGRAM.
The Food, Agriculture, Conservation, and Trade Act of 1990
is amended by inserting after section 1543 (7 U.S.C. 3293) the
following:
‘‘SEC. 1543A. BIOTECHNOLOGY AND AGRICULTURAL TRADE PROGRAM.
‘‘(a) ESTABLISHMENT.—There is established in the Department
the biotechnology and agricultural trade program.
‘‘(b) PURPOSE.—The purpose of the program shall be to remove,
resolve, or mitigate significant regulatory nontariff barriers to the
export of United States agricultural commodities (as defined in
section 102 of the Agricultural Trade Act of 1978 (7 U.S.C. 5602))
into foreign markets through public and private sector projects
funded by grants that address—
‘‘(1) quick response intervention regarding nontariff bar-
riers to United States exports involving—
‘‘(A) United States agricultural commodities produced
through biotechnology;
‘‘(B) food safety;
‘‘(C) disease; or
‘‘(D) other sanitary or phytosanitary concerns; or
‘‘(2) developing protocols as part of bilateral negotiations
with other countries on issues such as animal health, grain
quality, and genetically modified commodities.
‘‘(c) ELIGIBLE PROGRAMS.—Depending on need, as determined
by the Secretary, activities authorized under this section may be
carried out through—
‘‘(1) this section;
‘‘(2) the emerging markets program under section 1542;
or
‘‘(3) the Cochran Fellowship Program under section 1543.
H. R. 2646—168
‘‘(d) FUNDING.—There is authorized to be appropriated
$6,000,000 for each of fiscal years 2002 through 2007.’’.
SEC. 3205. TECHNICAL ASSISTANCE FOR SPECIALTY CROPS.
(a) ESTABLISHMENT.—The Secretary of Agriculture shall estab-
lish an export assistance program (referred to in this section as
the ‘‘program’’) to address unique barriers that prohibit or threaten
the export of United States specialty crops.
(b) PURPOSE.—The program shall provide direct assistance
through public and private sector projects and technical assistance
to remove, resolve, or mitigate sanitary and phytosanitary and
related barriers to trade.
(c) PRIORITY.—The program shall address time sensitive and
strategic market access projects based on—
(1) trade effect on market retention, market access, and
market expansion; and
(2) trade impact.
(d) FUNDING.—For each of fiscal years 2002 through 2007,
the Secretary shall make available $2,000,000 of the funds of,
or an equal value of commodities owned by, the Commodity Credit
Corporation.
SEC. 3206. GLOBAL MARKET STRATEGY.
(a) IN GENERAL.—Not later than 180 days after the date of
enactment of this Act, and biennially thereafter, the Secretary
of Agriculture shall consult with the Committee on Agriculture,
and the Committee on International Relations, of the House of
Representatives and the Committee on Agriculture, Nutrition, and
Forestry of the Senate on the formulation and implementation
of a global market strategy for the Department of Agriculture
that, to the maximum extent practicable—
(1) identifies opportunities for the growth of agricultural
exports to overseas markets;
(2) ensures that the resources, programs, and policies of
the Department are coordinated with those of other agencies;
and
(3) remove barriers to agricultural trade in overseas mar-
kets.
(b) REVIEW.—The consultations under subsection (a) shall
include a review of—
(1) the strategic goals of the Department; and
(2) the progress of the Department in implementing the
strategic goals through the global market strategy.
SEC. 3207. REPORT ON USE OF PERISHABLE COMMODITIES AND LIVE
ANIMALS.
Not later than 120 days after the date of enactment of this
Act, the Secretary of Agriculture shall submit to the Committee
on Agriculture of the House of Representatives and the Committee
on Agriculture, Nutrition, and Forestry of the Senate a report
on international food aid programs of the United States that
evaluates—
(1) the implications of storage and transportation capacity
and funding for the use of perishable agricultural commodities
and semiperishable agricultural commodities; and
(2) the feasibility of the transport of lambs and other live
animals under the program.
H. R. 2646—169
SEC. 3208. STUDY ON FEE FOR SERVICES.
(a) IN GENERAL.—Not later than 1 year after the date of enact-
ment of this Act, the Secretary of Agriculture shall submit to
the Committee on Agriculture, and the Committee on International
Relations, of the House of Representatives and the Committee on
Agriculture, Nutrition and Forestry of the Senate a report on the
feasibility of instituting a program under which the Secretary would
charge and retain a fee to cover the costs incurred by the Depart-
ment of Agriculture, acting through the Foreign Agricultural Service
or any successor agency, in providing persons with commercial
services provided outside the United States.
(b) PURPOSE OF PROGRAM.—The purpose of a program described
in subsection (a) would be to supplement and not replace any
services currently offered overseas by the Foreign Agricultural
Service.
(c) MARKET DEVELOPMENT STRATEGY.—A program under sub-
section (b) would be part of an overall market development strategy
for a particular country or region.
(d) PILOT PROGRAM.—A program under subsection (a) would
be established on a pilot basis to ensure that the program does
not disadvantage small- and medium-sized companies, including
companies that have never engaged in exporting.
SEC. 3209. SENSE OF CONGRESS CONCERNING FOREIGN ASSISTANCE
PROGRAMS.
(a) FINDINGS.—Congress finds that—
(1) the international community faces a continuing epi-
demic of ethnic, sectarian, and criminal violence;
(2) poverty, hunger, political uncertainty, and social insta-
bility are the principal causes of violence and conflict around
the world;
(3) broad-based, equitable economic growth and agriculture
development facilitates political stability, food security, democ-
racy, and the rule of law;
(4) democratic governments are more likely to advocate
and observe international laws, protect civil and human rights,
pursue free market economies, and avoid external conflicts;
(5) the United States Agency for International Development
has provided critical democracy and governance assistance to
a majority of the nations that successfully made the transition
to democratic governments during the past 2 decades;
(6) 43 of the top 50 consumer nations of American agricul-
tural products were once United States foreign aid recipients;
(7) in the past 50 years, infant child death rates in the
developing world have been reduced by 50 percent, and health
conditions around the world have improved more during this
period than in any other period;
(8) the United States Agency for International Development
child survival programs have significantly contributed to a 10
percent reduction in infant mortality rates worldwide in just
the past 8 years;
(9) in providing assistance by the United States and other
donors in better seeds and teaching more efficient agricultural
techniques over the past 2 decades have helped make it possible
to feed an additional 1,000,000,000 people in the world;
(10) despite this progress, approximately 1,200,000,000
people, one-quarter of the world’s population, live on less that
H. R. 2646—170
$1 per day, and approximately 3,000,000,000 people live on
only $2 per day;
(11) 95 percent of new births occur in developing countries,
including the world’s poorest countries; and
(12) only 1⁄2 percent of the Federal budget is dedicated
to international economic and humanitarian assistance.
(b) SENSE OF CONGRESS.—It is the sense of Congress that—
(1) United States foreign assistance programs should play
an increased role in the global fight against terrorism to com-
plement the national security objectives of the United States;
(2) the United States should lead coordinated international
efforts to provide increased financial assistance to countries
with impoverished and disadvantaged populations that are the
breeding grounds for terrorism; and
(3) the United States Agency for International Development
and the Department of Agriculture should substantially
increase humanitarian, economic development, and agricultural
assistance to foster international peace and stability and the
promotion of human rights.
SEC. 3210. SENSE OF THE SENATE CONCERNING AGRICULTURAL
TRADE.
(a) AGRICULTURE TRADE NEGOTIATING OBJECTIVES.—It is the
sense of the Senate that the principal negotiating objective of the
United States with respect to agricultural trade in all multilateral,
regional, and bilateral negotiations is to obtain competitive
opportunities for the export of United States agricultural commod-
ities in foreign markets substantially equivalent to the competitive
opportunities afforded foreign exports in United States markets
and to achieve fairer and more open conditions of agricultural
trade in bulk and value-added commodities by—
(1) reducing or eliminating, by a date certain, tariffs or
other charges that decrease market opportunities for the export
of United States agricultural commodities, giving priority to
United States agricultural commodities that are subject to
significantly higher tariffs or subsidy regimes of major pro-
ducing countries;
(2) immediately eliminating all export subsidies on agricul-
tural commodities worldwide while maintaining bona fide food
aid and preserving United States agricultural market develop-
ment and export credit programs that allow the United States
to compete with other foreign export promotion efforts;
(3) leveling the playing field for United States agricultural
producers by disciplining domestic supports such that no other
country can provide greater support, measured as a percentage
of total agricultural production value, than the United States
does while preserving existing green box category to support
conservation activities, family farms, and rural communities;
(4) developing, strengthening, and clarifying rules and
effective dispute settlement mechanisms to eliminate practices
that unfairly decrease United States market access opportuni-
ties for United States agricultural commodities or distort agri-
cultural markets to the detriment of the United States,
including—
(A) unfair or trade-distorting activities of state trading
enterprises and other administrative mechanisms, with
emphasis on—
H. R. 2646—171
(i) requiring price transparency in the operation
of state trading enterprises and such other mecha-
nisms; and
(ii) ending discriminatory pricing practices for agri-
cultural commodities that amount to de facto export
subsidies so that the enterprises or other mechanisms
do not (except in cases of bona fide food aid) sell
agricultural commodities in foreign markets at prices
below domestic market prices or prices below the full
costs of acquiring and delivering agricultural commod-
ities to the foreign markets;
(B) unjustified trade restrictions or commercial require-
ments affecting new agricultural technologies, including
biotechnology;
(C) unjustified sanitary or phytosanitary restrictions,
including restrictions that are not based on scientific prin-
ciples, in contravention of the Agreement on the Application
of Sanitary and Phytosanitary Measures (as described in
section 101(d)(3) of the Uruguay Round Agreements Act
(19 U.S.C. 3511(d)(3)));
(D) other unjustified technical barriers to agricultural
trade; and
(E) restrictive and nontransparent rules in the
administration of tariff rate quotas;
(5) improving import relief mechanisms to recognize the
unique characteristics of perishable agricultural commodities;
(6) taking into account whether a party to negotiations
with respect to trading in an agricultural commodity has—
(A) failed to adhere to the provisions of an existing
bilateral trade agreement with the United States;
(B) circumvented obligations under a multilateral trade
agreement to which the United States is a signatory; or
(C) manipulated its currency value to the detriment
of United States agricultural producers or exporters; and
(7) otherwise ensuring that countries that accede to the
World Trade Organization—
(A) have made meaningful market liberalization
commitments in agriculture; and
(B) make progress in fulfilling those commitments over
time.
(b) PRIORITY FOR AGRICULTURE TRADE.—It is the sense of the
Senate that—
(1) reaching a successful agreement on agriculture should
be the top priority of United States negotiators in World Trade
Organization talks; and
(2) if the primary export competitors of the United States
fail to reduce their trade distorting domestic supports and
eliminate export subsidies in accordance with the negotiating
objectives expressed in this section, the United States should
take steps to increase the leverage of United States negotiators
and level the playing field for United States producers, within
existing World Trade Organization commitments.
(c) CONSULTATION WITH CONGRESSIONAL COMMITTEES.—It is
the sense of the Senate that—
H. R. 2646—172
(1) before the United States Trade Representative nego-
tiates a trade agreement that would reduce tariffs on agricul-
tural commodities or require a change in United States agricul-
tural law, the United States Trade Representative should con-
sult with the Committee on Agriculture and the Committee
on Ways and Means of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry and the
Committee on Finance of the Senate;
(2) not less than 48 hours before initialing an agreement
relating to agricultural trade negotiated under the auspices
of the World Trade Organization, the United States Trade
Representative should consult closely with the committees
referred to in paragraph (1) regarding—
(A) the details of the agreement;
(B) the potential impact of the agreement on United
States agricultural producers; and
(C) any changes in United States law necessary to
implement the agreement; and
(3) any agreement or other understanding (whether verbal
or in writing) that relates to agricultural trade that is not
disclosed to Congress before legislation implementing a trade
agreement is introduced in either the Senate or the House
of Representatives should not be considered to be part of the
agreement approved by Congress and should have no force
and effect under Unites States law or in any dispute settlement
body.
TITLE IV—NUTRITION PROGRAMS
SEC. 4001. SHORT TITLE.
This title may be cited as the ‘‘Food Stamp Reauthorization
Act of 2002’’.
Subtitle A—Food Stamp Program
SEC. 4101. ENCOURAGEMENT OF PAYMENT OF CHILD SUPPORT.
(a) EXCLUSION.—Section 5(d)(6) of the Food Stamp Act of 1977
(7 U.S.C. 2014(d)(6)) is amended by adding at the end the following:
‘‘and child support payments made by a household member to
or for an individual who is not a member of the household if
the household member is legally obligated to make the payments,’’.
(b) SIMPLIFIED PROCEDURE.—Section 5 of the Food Stamp Act
of 1977 (7 U.S.C. 2014) is amended—
(1) in subsection (e), by striking paragraph (4) and inserting
the following:
‘‘(4) DEDUCTION FOR CHILD SUPPORT PAYMENTS.—
‘‘(A) IN GENERAL.—In lieu of providing an exclusion
for legally obligated child support payments made by a
household member under subsection (d)(6), a State agency
may elect to provide a deduction for the amount of the
payments.
‘‘(B) ORDER OF DETERMINING DEDUCTIONS.—A deduc-
tion under this paragraph shall be determined before the
computation of the excess shelter expense deduction under
paragraph (6).’’; and
H. R. 2646—173
(2) by adding at the end the following:
‘‘(n) STATE OPTIONS TO SIMPLIFY DETERMINATION OF CHILD
SUPPORT PAYMENTS.—Regardless of whether a State agency elects
to provide a deduction under subsection (e)(4), the Secretary shall
establish simplified procedures to allow State agencies, at the option
of the State agencies, to determine the amount of any legally
obligated child support payments made, including procedures to
allow the State agency to rely on information from the agency
responsible for implementing the program under part D of title
IV of the Social Security Act (42 U.S.C. 651 et seq.) concerning
payments made in prior months in lieu of obtaining current informa-
tion from the households.’’.
SEC. 4102. SIMPLIFIED DEFINITION OF INCOME.
Section 5(d) of the Food Stamp Act of 1977 (7 U.S.C. 2014(d))
is amended—
(1) by striking ‘‘and (15)’’ and inserting ‘‘(15)’’; and
(2) by inserting before the period at the end the following:
‘‘, (16) at the option of the State agency, any educational loans
on which payment is deferred, grants, scholarships, fellowships,
veterans’ educational benefits, and the like (other than loans,
grants, scholarships, fellowships, veterans’ educational benefits,
and the like excluded under paragraph (3)), to the extent that
they are required to be excluded under title XIX of the Social
Security Act (42 U.S.C. 1396 et seq.), (17) at the option of
the State agency, any State complementary assistance program
payments that are excluded for the purpose of determining
eligibility for medical assistance under section 1931 of the
Social Security Act (42 U.S.C. 1396u–1), and (18) at the option
of the State agency, any types of income that the State agency
does not consider when determining eligibility for (A) cash
assistance under a program funded under part A of title IV
of the Social Security Act (42 U.S.C. 601 et seq.) or the amount
of such assistance, or (B) medical assistance under section
1931 of the Social Security Act (42 U.S.C. 1396u–1), except
that this paragraph does not authorize a State agency to
exclude wages or salaries, benefits under title I, II, IV, X,
XIV, or XVI of the Social Security Act (42 U.S.C. 301 et seq.),
regular payments from a government source (such as unemploy-
ment benefits and general assistance), worker’s compensation,
child support payments made to a household member by an
individual who is legally obligated to make the payments, or
such other types of income the consideration of which the
Secretary determines by regulation to be essential to equitable
determinations of eligibility and benefit levels’’.
SEC. 4103. STANDARD DEDUCTION.
Section 5(e) of the Food Stamp Act of 1977 (7 U.S.C. 2014(e))
is amended by striking paragraph (1) and inserting the following:
‘‘(1) STANDARD DEDUCTION.—
‘‘(A) IN GENERAL.—
‘‘(i) DEDUCTION.—The Secretary shall allow a
standard deduction for each household in the 48 contig-
uous States and the District of Columbia, Alaska,
Hawaii, and the Virgin Islands of the United States
in an amount that is—
H. R. 2646—174
‘‘(I) equal to 8.31 percent of the income
standard of eligibility established under subsection
(c)(1); but
‘‘(II) not more than 8.31 percent of the income
standard of eligibility established under subsection
(c)(1) for a household of 6 members.
‘‘(ii) MINIMUM AMOUNT.—Notwithstanding clause
(i), the standard deduction for each household in the
48 contiguous States and the District of Columbia,
Alaska, Hawaii, and the Virgin Islands of the United
States shall be not less than $134, $229, $189, and
$118, respectively.
‘‘(B) GUAM.—
‘‘(i) IN
GENERAL.—The Secretary shall allow a
standard deduction for each household in Guam in
an amount that is—
‘‘(I) equal to 8.31 percent of twice the income
standard of eligibility established under subsection
(c)(1) for the 48 contiguous States and the District
of Columbia; but
‘‘(II) not more than 8.31 percent of twice the
income standard of eligibility established under
subsection (c)(1) for the 48 contiguous States and
the District of Columbia for a household of 6 mem-
bers.
‘‘(ii) MINIMUM AMOUNT.—Notwithstanding clause
(i), the standard deduction for each household in Guam
shall be not less than $269.’’.
SEC. 4104. SIMPLIFIED UTILITY ALLOWANCE.
Section 5(e)(7)(C)(iii) of the Food Stamp Act of 1977 (7 U.S.C.
2014(e)(7)(C)(iii)) is amended—
(1) in subclause (I)(bb), by inserting ‘‘(without regard to
subclause (III))’’ after ‘‘Secretary finds’’; and
(2) by adding at the end the following:
‘‘(III) INAPPLICABILITY
OF
CERTAIN
RESTRIC-
TIONS.—Clauses (ii)(II) and (ii)(III) shall not apply
in the case of a State agency that has made the
use of a standard utility allowance mandatory
under subclause (I).’’.
SEC. 4105. SIMPLIFIED DETERMINATION OF HOUSING COSTS.
(a) IN GENERAL.—Section 5(e)(7) of the Food Stamp Act of
1977 (7 U.S.C. 2014(e)(7)) is amended by adding at the end the
following:
‘‘(D) HOMELESS HOUSEHOLDS.—
‘‘(i) ALTERNATIVE
DEDUCTION.—In lieu of the
deduction provided under subparagraph (A), a State
agency may elect to allow a household in which all
members are homeless individuals, but that is not
receiving free shelter throughout the month, to receive
a deduction of $143 per month.
‘‘(ii) INELIGIBILITY.—The State agency may make
a household with extremely low shelter costs ineligible
for the alternative deduction under clause (i).’’.
(b) CONFORMING AMENDMENTS.—Section 5 of the Food Stamp
Act of 1977 (7 U.S.C. 2014) is amended—
(1) in subsection (e)—
H. R. 2646—175
(A) by striking paragraph (5); and
(B) by redesignating paragraphs (6) and (7) as para-
graphs (5) and (6), respectively; and
(2) in subsection (k)(4)(B), by striking ‘‘subsection (e)(7)’’
and inserting ‘‘subsection (e)(6)’’.
SEC. 4106. SIMPLIFIED DETERMINATION OF DEDUCTIONS.
Section 5(f)(1) of the Food Stamp Act of 1977 (7 U.S.C.
2014(f)(1)) is amended by adding at the end the following:
‘‘(C) SIMPLIFIED DETERMINATION OF DEDUCTIONS.—
‘‘(i) IN
GENERAL.—Except as provided in clause
(ii), for the purposes of subsection (e), a State agency
may elect to disregard until the next recertification
of eligibility under section 11(e)(4) 1 or more types
of changes in the circumstances of a household that
affect the amount of deductions the household may
claim under subsection (e).
‘‘(ii) CHANGES THAT MAY NOT BE DISREGARDED.—
Under clause (i), a State agency may not disregard—
‘‘(I) any reported change of residence; or
‘‘(II) under standards prescribed by the Sec-
retary, any change in earned income.’’.
SEC. 4107. SIMPLIFIED DEFINITION OF RESOURCES.
Section 5(g) of the Food Stamp Act of 1977 (7 U.S.C. 2014(g))
is amended—
(1) in paragraph (1), by striking ‘‘a member who is 60
years of age or older’’ and inserting ‘‘an elderly or disabled
member’’; and
(2) by adding at the end the following:
‘‘(6) EXCLUSION OF TYPES OF FINANCIAL RESOURCES NOT
CONSIDERED UNDER CERTAIN OTHER FEDERAL PROGRAMS.—
‘‘(A) IN GENERAL.—Subject to subparagraph (B), a State
agency may, at the option of the State agency, exclude
from financial resources under this subsection any types
of financial resources that the State agency does not con-
sider when determining eligibility for—
‘‘(i) cash assistance under a program funded under
part A of title IV of the Social Security Act (42 U.S.C.
601 et seq.); or
‘‘(ii) medical assistance under section 1931 of the
Social Security Act (42 U.S.C. 1396u–1).
‘‘(B) LIMITATIONS.—Except to the extent that any of
the types of resources specified in clauses (i) through (iv)
are excluded under another paragraph of this subsection,
subparagraph (A) does not authorize a State agency to
exclude—
‘‘(i) cash;
‘‘(ii) licensed vehicles;
‘‘(iii) amounts in any account in a financial institu-
tion that are readily available to the household; or
‘‘(iv) any other similar type of resource the inclu-
sion in financial resources of which the Secretary deter-
mines by regulation to be essential to equitable deter-
minations of eligibility under the food stamp program.’’.
H. R. 2646—176
SEC. 4108. ALTERNATIVE ISSUANCE SYSTEMS IN DISASTERS.
(a) IN GENERAL.—Section 5(h)(3)(B) of the Food Stamp Act
of 1977 (7 U.S.C. 2014(h)(3)(B)) is amended—
(1) in the first sentence, by inserting ‘‘issuance methods
and’’ after ‘‘shall adjust’’; and
(2) in the second sentence, by inserting ‘‘, any conditions
that make reliance on electronic benefit transfer systems
described in section 7(i) impracticable,’’ after ‘‘personnel’’.
(b) EFFECTIVE DATE.—The amendments made by this section
take effect on the date of enactment of this Act.
SEC. 4109. STATE OPTION TO REDUCE REPORTING REQUIREMENTS.
Section 6(c)(1) of the Food Stamp Act of 1977 (7 U.S.C.
2015(c)(1)) is amended—
(1) in subparagraph (B), by striking ‘‘on a monthly basis’’;
and
(2) by adding at the end the following:
‘‘(D) FREQUENCY OF REPORTING.—
‘‘(i) IN GENERAL.—Except as provided in subpara-
graphs (A) and (C), a State agency may require house-
holds that report on a periodic basis to submit
reports—
‘‘(I) not less often than once each 6 months;
but
‘‘(II) not more often than once each month.
‘‘(ii) REPORTING
BY
HOUSEHOLDS
WITH
EXCESS
INCOME.—A household required to report less often
than once each 3 months shall, notwithstanding
subparagraph (B), report in a manner prescribed by
the Secretary if the income of the household for any
month exceeds the income standard of eligibility estab-
lished under section 5(c)(2).’’.
SEC. 4110. COST NEUTRALITY FOR ELECTRONIC BENEFIT TRANSFER
SYSTEMS.
Section 7(i)(2) of the Food Stamp Act of 1977 (7 U.S.C.
2016(i)(2)) is amended—
(1) by striking subparagraph (A); and
(2) by redesignating subparagraphs (B) through (I) as sub-
paragraphs (A) through (H), respectively.
SEC. 4111. REPORT ON ELECTRONIC BENEFIT TRANSFER SYSTEMS.
(a) DEFINITION
OF EBT SYSTEM.—In this section, the term
‘‘EBT system’’ means an electronic benefit transfer system used
in issuance of benefits under the food stamp program under the
Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.).
(b) REPORT.—Not later than October 1, 2003, the Secretary
of Agriculture shall submit to the Committee on Agriculture of
the House of Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate a report that—
(1) describes the status of use by each State agency of
EBT systems;
(2) specifies the number of vendors that have entered into
a contract for an EBT system with a State agency;
(3)(A) specifies the number of State agencies that have
entered into an EBT-system contract with multiple EBT-system
vendors; and
H. R. 2646—177
(B) describes, for each State agency described in subpara-
graph (A), how responsibilities are divided among the various
vendors;
(4) with respect to any State in which an EBT system
is not operational throughout the State as of October 1, 2002—
(A) provides an explanation of the reasons why an
EBT system is not operational throughout the State;
(B) describes how the reasons are being addressed;
and
(C) specifies the expected date of operation of an EBT
system throughout the State;
(5) provides a description of—
(A) the issues faced by any State agency that has
awarded a second EBT-system contract in the 2-year period
preceding the date of the report; and
(B) the steps that the State agency has taken to
address those issues;
(6) provides a description of—
(A) the issues faced by any State agency that will
award a second EBT-system contract within the 2-year
period beginning on the date of the report; and
(B) strategies that the State agency is considering to
address those issues;
(7) describes initiatives being considered or taken by the
Department of Agriculture, food retailers, EBT-system vendors,
and client advocates to address any outstanding issues with
respect to EBT systems; and
(8) examines areas of potential advances in electronic ben-
efit delivery in the 5- to 10-year period beginning on the date
of the report, including—
(A) access to EBT systems at farmers’ markets;
(B) increased use of transaction data from EBT systems
to identify and prosecute fraud; and
(C) fostering of increased competition among EBT-
system vendors to ensure cost containment and optimal
service.
SEC. 4112. ALTERNATIVE PROCEDURES FOR RESIDENTS OF CERTAIN
GROUP FACILITIES.
(a) IN GENERAL.—Section 8 of the Food Stamp Act of 1977
(7 U.S.C. 2017) is amended by adding at the end the following:
‘‘(f) ALTERNATIVE PROCEDURES
FOR RESIDENTS
OF CERTAIN
GROUP FACILITIES.—
‘‘(1) IN GENERAL.—
‘‘(A) APPLICABILITY.—
‘‘(i) IN
GENERAL.—Subject to clause (ii), at the
option of the State agency, allotments for residents
of any facility described in subparagraph (B), (C), (D),
or (E) of section 3(i)(5) (referred to in this subsection
as a ‘covered facility’) may be determined and issued
under this paragraph in lieu of subsection (a).
‘‘(ii) LIMITATION.—Unless the Secretary authorizes
implementation of this paragraph in all States under
paragraph (3), clause (i) shall apply only to residents
of covered facilities participating in a pilot project
under paragraph (2).
H. R. 2646—178
‘‘(B) AMOUNT OF ALLOTMENT.—The allotment for each
eligible resident described in subparagraph (A) shall be
calculated in accordance with standardized procedures
established by the Secretary that take into account the
allotments typically received by residents of covered facili-
ties.
‘‘(C) ISSUANCE OF ALLOTMENT.—
‘‘(i) IN
GENERAL.—The State agency shall issue
an allotment determined under this paragraph to a
covered facility as the authorized representative of the
residents of the covered facility.
‘‘(ii) ADJUSTMENT.—The Secretary shall establish
procedures to ensure that a covered facility does not
receive a greater proportion of a resident’s monthly
allotment than the proportion of the month during
which the resident lived in the covered facility.
‘‘(D) DEPARTURES OF RESIDENTS OF COVERED FACILI-
TIES.—
‘‘(i) NOTIFICATION.—Any covered facility that
receives an allotment for a resident under this para-
graph shall—
‘‘(I) notify the State agency promptly on the
departure of the resident; and
‘‘(II) notify the resident, before the departure
of the resident, that the resident—
‘‘(aa) is eligible for continued benefits
under the food stamp program; and
‘‘(bb) should contact the State agency con-
cerning continuation of the benefits.
‘‘(ii) 
ISSUANCE
TO
DEPARTED
RESIDENTS.—On
receiving a notification under clause (i)(I) concerning
the departure of a resident, the State agency—
‘‘(I) shall promptly issue the departed resident
an allotment for the days of the month after the
departure of the resident (calculated in a manner
prescribed by the Secretary) unless the departed
resident reapplies to participate in the food stamp
program; and
‘‘(II) may issue an allotment for the month
following the month of the departure (but not any
subsequent month) based on this paragraph unless
the departed resident reapplies to participate in
the food stamp program.
‘‘(iii) STATE OPTION.—The State agency may elect
not to issue an allotment under clause (ii)(I) if the
State agency lacks sufficient information on the loca-
tion of the departed resident to provide the allotment.
‘‘(iv) EFFECT OF REAPPLICATION.—If the departed
resident reapplies to participate in the food stamp
program, the allotment of the departed resident shall
be determined without regard to this paragraph.
‘‘(2) PILOT PROJECTS.—
‘‘(A) IN
GENERAL.—Before the Secretary authorizes
implementation of paragraph (1) in all States, the Secretary
shall carry out, at the request of 1 or more State agencies
and in 1 or more areas of the United States, such number
of pilot projects as the Secretary determines to be sufficient
H. R. 2646—179
to test the feasibility of determining and issuing allotments
to residents of covered facilities under paragraph (1) in
lieu of subsection (a).
‘‘(B) PROJECT PLAN.—To be eligible to participate in
a pilot project under subparagraph (A), a State agency
shall submit to the Secretary for approval a project plan
that includes—
‘‘(i) a specification of the covered facilities in the
State that will participate in the pilot project;
‘‘(ii) a schedule for reports to be submitted to the
Secretary on the pilot project;
‘‘(iii) 
procedures 
for 
standardizing 
allotment
amounts that takes into account the allotments typi-
cally received by residents of covered facilities; and
‘‘(iv) a commitment to carry out the pilot project
in compliance with the requirements of this subsection
other than paragraph (1)(B).
‘‘(3) AUTHORIZATION OF IMPLEMENTATION IN ALL STATES.—
‘‘(A) IN GENERAL.—The Secretary shall—
‘‘(i) determine whether to authorize implementa-
tion of paragraph (1) in all States; and
‘‘(ii) notify the Committee on Agriculture of the
House of Representatives and the Committee on Agri-
culture, Nutrition, and Forestry of the Senate of the
determination.
‘‘(B) DETERMINATION NOT TO AUTHORIZE IMPLEMENTA-
TION IN ALL STATES.—
‘‘(i) IN GENERAL.—If the Secretary makes a finding
described in clause (ii), the Secretary—
‘‘(I) shall not authorize implementation of
paragraph (1) in all States; and
‘‘(II) shall terminate all pilot projects under
paragraph (2) within a reasonable period of time
(as determined by the Secretary).
‘‘(ii) FINDING.—The finding referred to in clause
(i) is that—
‘‘(I) an insufficient number of project plans
that the Secretary determines to be eligible for
approval are submitted by State agencies under
paragraph (2)(B); or
‘‘(II)(aa) a sufficient number of pilot projects
have been carried out under paragraph (2)(A); and
‘‘(bb) authorization of implementation of para-
graph (1) in all States is not in the best interest
of the food stamp program.’’.
(b) CONFORMING AMENDMENTS.—
(1) Section 3(i) of the Food Stamp Act of 1977 (7 U.S.C.
2012(i)) is amended—
(A) by striking ‘‘(i) ‘Household’ means (1) an’’ and
inserting the following:
‘‘(i)(1) ‘Household’ means—
‘‘(A) an’’;
(B) in the first sentence, by striking ‘‘others, or (2)
a group’’ and inserting the following: ‘‘others; or
‘‘(B) a group’’;
(C) in the second sentence, by striking ‘‘Spouses’’ and
inserting the following:
H. R. 2646—180
‘‘(2) Spouses’’;
(D) in the third sentence, by striking ‘‘Notwith-
standing’’ and inserting the following:
‘‘(3) Notwithstanding’’;
(E) in paragraph (3) (as designated by subparagraph
(D)), by striking ‘‘the preceding sentences’’ and inserting
‘‘paragraphs (1) and (2)’’;
(F) in the fourth sentence, by striking ‘‘In no event’’
and inserting the following:
‘‘(4) In no event’’;
(G) in the fifth sentence, by striking ‘‘For the purposes
of this subsection, residents’’ and inserting the following:
‘‘(5) For the purposes of this subsection, the following persons
shall not be considered to be residents of institutions and shall
be considered to be individual households:
‘‘(A) Residents’’; and
(H) in paragraph (5) (as designated by subparagraph
(G))—
(i) by striking ‘‘Act, or are individuals’’ and
inserting the following: ‘‘Act.
‘‘(B) Individuals’’;
(ii) by striking ‘‘such section, temporary’’ and
inserting the following: ‘‘that section.
‘‘(C) Temporary’’;
(iii) by striking ‘‘children, residents’’ and inserting
the following: ‘‘children.
‘‘(D) Residents’’;
(iv) by striking ‘‘coupons, and narcotics’’ and
inserting the following: ‘‘coupons.
‘‘(E) Narcotics’’; and
(v) by striking ‘‘shall not’’ and all that follows
and inserting a period.
(2) Section 5(a) of the Food Stamp Act of 1977 (7 U.S.C.
2014(a)) is amended by striking ‘‘the third sentence of section
3(i)’’ each place it appears and inserting ‘‘section 3(i)(4)’’.
(3) Section 8(e)(1) of the Food Stamp Act of 1977 (7 U.S.C.
2017(e)(1)) is amended by striking ‘‘the last sentence of section
3(i)’’ and inserting ‘‘section 3(i)(5)’’.
(4) Section 17(b)(1)(B)(iv)(III)(aa) of the Food Stamp Act
of 1977 (7 U.S.C. 2026(b)(1)(B)(iv)(III)(aa)) is amended by
striking ‘‘the last 2 sentences of section 3(i)’’ and inserting
‘‘paragraphs (4) and (5) of section 3(i)’’.
SEC. 4113. REDEMPTION OF BENEFITS THROUGH GROUP LIVING
ARRANGEMENTS.
(a) IN GENERAL.—Section 10 of the Food Stamp Act of 1977
(7 U.S.C. 2019) is amended by inserting after the first sentence
the following: ‘‘Notwithstanding the preceding sentence, a center,
organization, institution, shelter, group living arrangement, or
establishment described in that sentence may be authorized to
redeem coupons through a financial institution described in that
sentence if the center, organization, institution, shelter, group living
arrangement, or establishment is equipped with 1 or more point-
of-sale devices and is operating in an area in which an electronic
benefit transfer system described in section 7(i) has been imple-
mented.’’.
H. R. 2646—181
(b) EFFECTIVE DATE.—The amendment made by this section
takes effect on the date of enactment of this Act.
SEC. 4114. AVAILABILITY OF FOOD STAMP PROGRAM APPLICATIONS
ON THE INTERNET.
(a) IN GENERAL.—Section 11(e)(2)(B)(ii) of the Food Stamp Act
of 1977 (7 U.S.C. 2020(e)(2)(B)(ii)) is amended—
(1) by inserting ‘‘(I)’’ after ‘‘(ii)’’;
(2) in subclause (I) (as designated by paragraph (1)), by
adding ‘‘and’’ at the end; and
(3) by adding at the end the following:
‘‘(II) if the State agency maintains a website for the
State agency, shall make the application available on the
website in each language in which the State agency makes
a printed application available;’’.
(b) EFFECTIVE DATE.—The amendments made by this section
take effect 18 months after the date of enactment of this Act.
SEC. 4115. TRANSITIONAL FOOD STAMPS FOR FAMILIES MOVING FROM
WELFARE.
(a) IN GENERAL.—Section 11 of the Food Stamp Act of 1977
(7 U.S.C. 2020) is amended by adding at the end the following:
‘‘(s) TRANSITIONAL BENEFITS OPTION.—
‘‘(1) IN GENERAL.—A State agency may provide transitional
food stamp benefits to a household that ceases to receive cash
assistance under a State program funded under part A of
title IV of the Social Security Act (42 U.S.C. 601 et seq.).
‘‘(2) TRANSITIONAL BENEFITS PERIOD.—Under paragraph (1),
a household may receive transitional food stamp benefits for
a period of not more than 5 months after the date on which
cash assistance is terminated.
‘‘(3) AMOUNT OF BENEFITS.—During the transitional bene-
fits period under paragraph (2), a household shall receive an
amount of food stamp benefits equal to the allotment received
in the month immediately preceding the date on which cash
assistance was terminated, adjusted for the change in household
income as a result of—
‘‘(A) the termination of cash assistance; and
‘‘(B) at the option of the State agency, information
from another program in which the household participates.
‘‘(4) DETERMINATION OF FUTURE ELIGIBILITY.—In the final
month of the transitional benefits period under paragraph (2),
the State agency may—
‘‘(A) require the household to cooperate in a recertifi-
cation of eligibility; and
‘‘(B) initiate a new certification period for the household
without regard to whether the preceding certification period
has expired.
‘‘(5) LIMITATION.—A household shall not be eligible for
transitional benefits under this subsection if the household—
‘‘(A) loses eligibility under section 6;
‘‘(B) is sanctioned for a failure to perform an action
required by Federal, State, or local law relating to a cash
assistance program described in paragraph (1); or
‘‘(C) is a member of any other category of households
designated by the State agency as ineligible for transitional
benefits.
‘‘(6) APPLICATIONS FOR RECERTIFICATION.—
H. R. 2646—182
‘‘(A) IN GENERAL.—A household receiving transitional
benefits under this subsection may apply for recertification
at any time during the transitional benefits period under
paragraph (2).
‘‘(B) DETERMINATION OF ALLOTMENT.—If a household
applies for recertification under subparagraph (A), the allot-
ment of the household for all subsequent months shall
be determined without regard to this subsection.’’.
(b) CONFORMING AMENDMENTS.—
(1) Section 3(c) of the Food Stamp Act of 1977 (7 U.S.C.
2012(c)) is amended by adding at the end the following: ‘‘The
limits specified in this subsection may be extended until the
end of any transitional benefit period established under section
11(s).’’.
(2) Section 6(c) of the Food Stamp Act of 1977 (7 U.S.C.
2015(c)) is amended by striking ‘‘No household’’ and inserting
‘‘Except in a case in which a household is receiving transitional
benefits during the transitional benefits period under section
11(s), no household’’.
SEC. 4116. GRANTS FOR SIMPLE APPLICATION AND ELIGIBILITY
DETERMINATION SYSTEMS AND IMPROVED ACCESS TO
BENEFITS.
(a) IN GENERAL.—Section 11 of the Food Stamp Act of 1977
(7 U.S.C. 2020) (as amended by section 4115(a)) is amended by
adding at the end the following:
‘‘(t) GRANTS FOR SIMPLE APPLICATION AND ELIGIBILITY DETER-
MINATION SYSTEMS AND IMPROVED ACCESS TO BENEFITS.—
‘‘(1) IN GENERAL.—For each of fiscal years 2003 through
2007, the Secretary shall use not more than $5,000,000 of
funds made available under section 18(a)(1) to make grants
to pay 100 percent of the costs of eligible entities approved
by the Secretary to carry out projects to develop and
implement—
‘‘(A) simple food stamp application and eligibility deter-
mination systems; or
‘‘(B) measures to improve access to food stamp benefits
by eligible households.
‘‘(2) TYPES OF PROJECTS.—A project under paragraph (1)
may consist of—
‘‘(A) coordinating application and eligibility determina-
tion processes, including verification practices, under the
food stamp program and other Federal, State, and local
assistance programs;
‘‘(B) establishing methods for applying for benefits and
determining eligibility that—
‘‘(i) more extensively use—
‘‘(I) communications by telephone; and
‘‘(II) electronic alternatives such as the Inter-
net; or
‘‘(ii) otherwise improve the administrative infra-
structure used in processing applications and deter-
mining eligibility;
‘‘(C) developing procedures, training materials, and
other resources aimed at reducing barriers to participation
and reaching eligible households;
H. R. 2646—183
‘‘(D) improving methods for informing and enrolling
eligible households; or
‘‘(E) carrying out such other activities as the Secretary
determines to be appropriate.
‘‘(3) LIMITATION.—A grant under this subsection shall not
be made for the ongoing cost of carrying out any project.
‘‘(4) ELIGIBLE ENTITIES.—To be eligible to receive a grant
under this subsection, an entity shall be—
‘‘(A) a State agency administering the food stamp pro-
gram;
‘‘(B) a State or local government;
‘‘(C) an agency providing health or welfare services;
‘‘(D) a public health or educational entity; or
‘‘(E) a private nonprofit entity such as a community-
based organization, food bank, or other emergency feeding
organization.
‘‘(5) SELECTION OF ELIGIBLE ENTITIES.—The Secretary—
‘‘(A) shall develop criteria for the selection of eligible
entities to receive grants under this subsection; and
‘‘(B) may give preference to any eligible entity that
consists of a partnership between a governmental entity
and a nongovernmental entity.’’.
(b) CONFORMING AMENDMENTS.—Section 17 of the Food Stamp
Act of 1977 (7 U.S.C. 2026) is amended—
(1) by striking subsection (i); and
(2) by redesignating subsections (j) and (k) as subsections
(i) and (j), respectively.
SEC. 4117. DELIVERY TO RETAILERS OF NOTICES OF ADVERSE ACTION.
(a) IN GENERAL.—Section 14(a) of the Food Stamp Act of 1977
(7 U.S.C. 2023(a)) is amended by striking paragraph (2) and
inserting the following:
‘‘(2) DELIVERY OF NOTICES.—A notice under paragraph (1)
shall be delivered by any form of delivery that the Secretary
determines will provide evidence of the delivery.’’.
(b) EFFECTIVE DATE.—The amendment made by this section
takes effect on the date of enactment of this Act.
SEC. 4118. REFORM OF QUALITY CONTROL SYSTEM.
(a) IN GENERAL.—Section 16(c) of the Food Stamp Act of 1977
(7 U.S.C. 2025(c)) is amended—
(1) by striking ‘‘(c)(1) The program’’ and all that follows
through the end of paragraph (1) and inserting the following:
‘‘(c) QUALITY CONTROL SYSTEM.—
‘‘(1) IN GENERAL.—
‘‘(A) SYSTEM.—In carrying out the food stamp program,
the Secretary shall carry out a system that enhances pay-
ment accuracy and improves administration by establishing
fiscal incentives that require State agencies with high pay-
ment error rates to share in the cost of payment error.
‘‘(B) ADJUSTMENT OF FEDERAL SHARE OF ADMINISTRA-
TIVE COSTS FOR FISCAL YEARS BEFORE FISCAL YEAR 2003.—
‘‘(i) IN
GENERAL.—Subject to clause (ii), with
respect to any fiscal year before fiscal year 2003, the
Secretary shall adjust a State agency’s federally funded
share of administrative costs under subsection (a),
other than the costs already shared in excess of 50
H. R. 2646—184
percent under the proviso in the first sentence of sub-
section (a) or under subsection (g), by increasing that
share of all such administrative costs by 1 percentage
point to a maximum of 60 percent of all such adminis-
trative costs for each full 1⁄10 of a percentage point
by which the payment error rate is less than 6 percent.
‘‘(ii) LIMITATION.—Only States with a rate of
invalid decisions in denying eligibility that is less than
a nationwide percentage that the Secretary determines
to be reasonable shall be entitled to the adjustment
under clause (i).
‘‘(C) ESTABLISHMENT OF LIABILITY AMOUNT FOR FISCAL
YEAR 2003 AND THEREAFTER.—With respect to fiscal year
2004 and any fiscal year thereafter for which the Secretary
determines that, for the second or subsequent consecutive
fiscal year, a 95 percent statistical probability exists that
the payment error rate of a State agency exceeds 105
percent of the national performance measure for payment
error rates announced under paragraph (6), the Secretary
shall establish an amount for which the State agency may
be liable (referred to in this paragraph as the ‘liability
amount’) that is equal to the product obtained by
multiplying—
‘‘(i) the value of all allotments issued by the State
agency in the fiscal year;
‘‘(ii) the difference between—
‘‘(I) the payment error rate of the State agency;
and
‘‘(II) 6 percent; and
‘‘(iii) 10 percent.
‘‘(D) AUTHORITY
OF
SECRETARY
WITH
RESPECT
TO
LIABILITY AMOUNT.—With respect to the liability amount
established for a State agency under subparagraph (C)
for any fiscal year, the Secretary shall—
‘‘(i)(I) waive the responsibility of the State agency
to pay all or any portion of the liability amount estab-
lished for the fiscal year (referred to in this paragraph
as the ‘waiver amount’);
‘‘(II) require that a portion, not to exceed 50 per-
cent, of the liability amount established for the fiscal
year be used by the State agency for new investment,
approved by the Secretary, to improve administration
by the State agency of the food stamp program
(referred to in this paragraph as the ‘new investment
amount’), which new investment amount shall not be
matched by Federal funds;
‘‘(III) designate a portion, not to exceed 50 percent,
of the amount established for the fiscal year for pay-
ment to the Secretary in accordance with subparagraph
(E) (referred to in this paragraph as the ‘at-risk
amount’); or
‘‘(IV) take any combination of the actions described
in subclauses (I) through (III); or
‘‘(ii) make the determinations described in clause
(i) and enter into a settlement with the State agency,
only with respect to any waiver amount or new invest-
ment amount, before the end of the fiscal year in
H. R. 2646—185
which the liability amount is determined under
subparagraph (C).
‘‘(E) PAYMENT
OF
AT-RISK
AMOUNT
FOR
CERTAIN
STATES.—
‘‘(i) IN GENERAL.—A State agency shall pay to the
Secretary 
the 
at-risk 
amount 
designated 
under
subparagraph (D)(i)(III) for any fiscal year in accord-
ance with clause (ii), if, with respect to the immediately
following fiscal year, a liability amount has been estab-
lished for the State agency under subparagraph (C).
‘‘(ii) METHOD OF PAYMENT OF AT-RISK AMOUNT.—
‘‘(I) REMISSION
TO
THE
SECRETARY.—In the
case of a State agency required to pay an at-
risk amount under clause (i), as soon as practicable
after completion of all administrative and judicial
reviews with respect to that requirement to pay,
the chief executive officer of the State shall remit
to the Secretary the at-risk amount required to
be paid.
‘‘(II) ALTERNATIVE METHOD OF COLLECTION.—
‘‘(aa) IN GENERAL.—If the chief executive
officer of the State fails to make the payment
under subclause (I) within a reasonable period
of time determined by the Secretary, the Sec-
retary may reduce any amount due to the
State agency under any other provision of this
section by the amount required to be paid
under clause (i).
‘‘(bb) ACCRUAL OF INTEREST.—During any
period of time determined by the Secretary
under item (aa), interest on the payment
under subclause (I) shall not accrue under sec-
tion 13(a)(2).
‘‘(F) USE OF PORTION OF LIABILITY AMOUNT FOR NEW
INVESTMENT.—
‘‘(i) REDUCTION OF OTHER AMOUNTS DUE TO STATE
AGENCY.—In the case of a State agency that fails to
comply with a requirement for new investment under
subparagraph (D)(i)(II) or clause (iii)(I), the Secretary
may reduce any amount due to the State agency under
any other provision of this section by the portion of
the liability amount that has not been used in accord-
ance with that requirement.
‘‘(ii) EFFECT
OF
STATE
AGENCY’S
WHOLLY
PRE-
VAILING ON APPEAL.—If a State agency begins required
new investment under subparagraph (D)(i)(II), the
State agency appeals the liability amount of the State
agency, and the determination by the Secretary of the
liability amount is reduced to $0 on administrative
or judicial review, the Secretary shall pay to the State
agency an amount equal to 50 percent of the new
investment amount that was included in the liability
amount subject to the appeal.
‘‘(iii) EFFECT OF SECRETARY’S WHOLLY PREVAILING
ON APPEAL.—If a State agency does not begin required
new investment under subparagraph (D)(i)(II), the
State agency appeals the liability amount of the State
H. R. 2646—186
agency, and the determination by the Secretary of the
liability amount is wholly upheld on administrative
or judicial review, the Secretary shall—
‘‘(I) require all or any portion of the new
investment amount to be used by the State agency
for new investment, approved by the Secretary,
to improve administration by the State agency of
the food stamp program, which amount shall not
be matched by Federal funds; and
‘‘(II) require payment of any remaining portion
of the new investment amount in accordance with
subparagraph (E)(ii).
‘‘(iv) EFFECT
OF
NEITHER
PARTY’S
WHOLLY
PRE-
VAILING ON APPEAL.—The Secretary shall promulgate
regulations regarding obligations of the Secretary and
the State agency in a case in which the State agency
appeals the liability amount of the State agency and
neither the Secretary nor the State agency wholly pre-
vails.
‘‘(G) CORRECTIVE ACTION PLANS.—The Secretary shall
foster management improvements by the States by
requiring State agencies, other than State agencies with
payment error rates of less than 6 percent, to develop
and implement corrective action plans to reduce payment
errors.’’;
(2) in paragraph (4), by striking ‘‘(4)’’ and all that follows
through the end of the first sentence and inserting the fol-
lowing:
‘‘(4) 
REPORTING
REQUIREMENTS.—The 
Secretary 
may
require a State agency to report any factors that the Secretary
considers necessary to determine a State agency’s payment
error rate, liability amount or new investment amount under
paragraph (1), or performance under the performance measures
under subsection (d).’’;
(3) in paragraph (5)—
(A) by striking ‘‘(5)’’ and all that follows through the
end of the second sentence and inserting the following:
‘‘(5) PROCEDURES.—To facilitate the implementation of this
subsection, each State agency shall expeditiously submit to
the Secretary data concerning the operations of the State
agency in each fiscal year sufficient for the Secretary to estab-
lish the State agency’s payment error rate, liability amount
or new investment amount under paragraph (1), or performance
under the performance measures under subsection (d).’’; and
(B) in the last sentence, by striking ‘‘paragraph (1)(C)’’
and inserting ‘‘paragraph (1)’’;
(4) in paragraph (6)—
(A) by striking ‘‘(6) At’’ and inserting the following:
‘‘(6) NATIONAL PERFORMANCE MEASURE FOR PAYMENT ERROR
RATES.—
‘‘(A) ANNOUNCEMENT.—At’’;
(B) in subparagraph (A) (as designated by subpara-
graph (A)), by striking ‘‘and incentive payments or claims
pursuant to paragraphs (1)(A) and (1)(C)’’;
(C) in the first and third sentences, by striking ‘‘para-
graph (5)’’ each place it appears and inserting ‘‘paragraph
(8)’’;
H. R. 2646—187
(D) by striking ‘‘Where a State’’ and inserting the fol-
lowing:
‘‘(B) USE OF ALTERNATIVE MEASURE OF STATE ERROR.—
Where a State’’;
(E) by striking ‘‘The announced’’ and inserting the
following:
‘‘(C) USE OF NATIONAL PERFORMANCE MEASURE.—The
announced’’;
(F) in subparagraph (C) (as designated by subpara-
graph (E)), by striking ‘‘the State share of the cost of
payment error under paragraph (1)(C)’’ and inserting ‘‘the
liability amount of a State under paragraph (1)(C)’’; and
(G) by adding at the end the following:
‘‘(D) NO
ADMINISTRATIVE
OR
JUDICIAL
REVIEW.—The
national performance measure announced under this para-
graph shall not be subject to administrative or judicial
review.’’;
(5) in paragraph (7)—
(A) by striking ‘‘(7) If the Secretary asserts a financial
claim against’’ and inserting the following:
‘‘(7) ADMINISTRATIVE AND JUDICIAL REVIEW.—
‘‘(A) IN
GENERAL.—Except as provided in subpara-
graphs (B) and (C), if the Secretary asserts a financial
claim against or establishes a liability amount with respect
to’’;
(B) in subparagraph (A) (as designated by subpara-
graph (A)), by striking ‘‘paragraph (1)(C)’’ and inserting
‘‘paragraph (1)’’; and
(C) by adding at the end the following:
‘‘(B) DETERMINATION OF PAYMENT ERROR RATE.—With
respect to any fiscal year, a determination of the payment
error rate of a State agency or a determination whether
the payment error rate exceeds 105 percent of the national
performance measure for payment error rates shall be sub-
ject to administrative or judicial review only if the Sec-
retary establishes a liability amount with respect to the
fiscal year under paragraph (1)(C).
‘‘(C) AUTHORITY
OF
SECRETARY
WITH
RESPECT
TO
LIABILITY
AMOUNT.—An action by the Secretary under
subparagraph (D) or (F)(iii) of paragraph (1) shall not be
subject to administrative or judicial review.’’; and
(6) in paragraph (8)—
(A) in subparagraph (A), by striking ‘‘paragraph (1)(C)’’
and inserting ‘‘paragraph (1)’’;
(B) in subparagraph (C)—
(i) in clause (i), by striking ‘‘payment claimed
against State agencies; and’’ and inserting ‘‘payment
claimed against State agencies or liability amount
established with respect to State agencies;’’;
(ii) in clause (ii), by striking ‘‘claims.’’ and inserting
‘‘claims or liability amounts; and’’; and
(iii) by adding at the end the following:
‘‘(iii) provide a copy of the document providing notification
under clause (ii) to the chief executive officer and the legislature
of the State.’’; and
(C) in subparagraphs (D) and (H), by inserting ‘‘or
liability amount’’ after ‘‘claim’’ each place it appears.
H. R. 2646—188
(b) AUTHORITY
TO
SETTLE
CLAIMS
CONCERNING
AT-RISK
AMOUNTS.—Section 13(a) of the Food Stamp Act of 1977 (7 U.S.C.
2022(a)) is amended—
(1) by striking ‘‘(a)(1) The’’ and inserting the following:
‘‘(a) GENERAL AUTHORITY OF THE SECRETARY.—
‘‘(1) DETERMINATION
OF
CLAIMS.—Except in the case of
an at-risk amount required under section 16(c)(1)(D)(i)(III),
the’’;
(2) by striking the fourth sentence;
(3) by striking ‘‘To the extent’’ and inserting the following:
‘‘(2) 
CLAIMS
ESTABLISHED
UNDER
QUALITY
CONTROL
SYSTEM.—To the extent’’;
(4) in paragraph (2) (as designated by paragraph (3)), by
striking ‘‘section 16(c)(1)(C)’’ and inserting ‘‘section 16(c)(1)’’;
(5) by striking ‘‘Any interest’’ and inserting the following:
‘‘(3) COMPUTATION OF INTEREST.—Any interest’’; and
(6) by striking ‘‘(2) Each adult’’ and inserting the following:
‘‘(4) JOINT AND SEVERAL LIABILITY OF HOUSEHOLD MEM-
BERS.—Each adult’’.
(c) CREDITING OF PAYMENTS TO FOOD STAMP APPROPRIATIONS
ACCOUNT.—Section 18(e) of the Food Stamp Act of 1977 (7 U.S.C.
2027(e)) is amended in the first sentence—
(1) by striking ‘‘11(g) and (h), and’’ and inserting ‘‘sub-
sections (g) and (h) of section 11,’’; and
(2) by inserting ‘‘and section 16(c)(1),’’ after ‘‘section 13,’’.
(d) CONFORMING AMENDMENTS.—Section 22(h) of the Food
Stamp Act of 1977 (7 U.S.C. 2031(h)) is amended—
(1) in the second sentence, by striking ‘‘section 16(c)(1)(C)’’
and inserting ‘‘section 16(c)(1)’’; and
(2) by striking the third sentence.
(e) APPLICABILITY.—The amendments made by this section shall
not apply with respect to any sanction, appeal, new investment
agreement, or other action by the Secretary of Agriculture or a
State agency that is based on a payment error rate calculated
for any fiscal year before fiscal year 2003.
SEC. 4119. IMPROVEMENT OF CALCULATION OF STATE PERFORMANCE
MEASURES.
(a) IN GENERAL.—Section 16(c)(8) of the Food Stamp Act of
1977 (7 U.S.C. 2025(c)(8)) is amended—
(1) in subparagraph (B), by striking ‘‘180 days after the
end of the fiscal year’’ and inserting ‘‘the first May 31 after
the end of the fiscal year referred to in subparagraph (A)’’;
and
(2) in subparagraph (C), by striking ‘‘30 days thereafter’’
and inserting ‘‘the first June 30 after the end of the fiscal
year referred to in subparagraph (A)’’.
(b) EFFECTIVE DATE.—The amendments made by this section
take effect on the date of enactment of this Act.
SEC. 4120. BONUSES FOR STATES THAT DEMONSTRATE HIGH OR MOST
IMPROVED PERFORMANCE.
(a) IN GENERAL.—Section 16 of the Food Stamp Act of 1977
(7 U.S.C. 2025) is amended by striking subsection (d) and inserting
the following:
‘‘(d) BONUSES FOR STATES THAT DEMONSTRATE HIGH OR MOST
IMPROVED PERFORMANCE.—
‘‘(1) FISCAL YEARS 2003 AND 2004.—