H. R. 6124—561 
(2) NO
PERSONALLY
IDENTIFIABLE
INFORMATION.—The 
reports provided pursuant to paragraph (1) shall not contain 
any information that would identify any person who applied 
for a loan from the Department. 
(3) REPORTING DEADLINE.— 
(A) IN GENERAL.—The Secretary shall— 
(i) provide to claimants the reports required under 
paragraph (1) as quickly as practicable after the Sec-
retary receives notice of a complaint filed by a claimant 
under subsection (b); and 
(ii) devote such resources of the Department as 
are necessary to make providing the reports expedi-
tiously a high priority of the Department. 
(B) EXTENSION.—A court may extend the deadline for 
providing the report required in a particular case under 
paragraph (1) if the Secretary establishes that meeting 
the deadline is not feasible and demonstrates a continuing 
effort and commitment to provide the required report 
expeditiously. 
(f) EXPEDITED RESOLUTIONS AUTHORIZED.— 
(1) IN GENERAL.—Any person filing a complaint under this 
section for discrimination in the application for, or making 
or servicing of, a farm loan, at the discretion of the person, 
may seek liquidated damages of $50,000, discharge of the debt 
that was incurred under, or affected by, the 1 or more programs 
that were the subject of the 1 or more discrimination claims 
that are the subject of the person’s complaint, and a tax pay-
ment in the amount equal to 25 percent of the liquidated 
damages and loan principal discharged, in which case— 
(A) if only such damages, debt discharge, and tax pay-
ment are sought, the complainant shall be able to prove 
the case of the complainant by substantial evidence (as 
defined in section 1(l) of the consent decree); and 
(B) the court shall decide the case based on a review 
of documents submitted by the complainant and defendant 
relevant to the issues of liability and damages. 
(2) NONCREDIT CLAIMS.— 
(A) STANDARD.—In any case in which a claimant 
asserts a noncredit claim under a benefit program of the 
Department, the court shall determine the merits of the 
claim in accordance with section 9(b)(i) of the consent 
decree. 
(B) RELIEF.—A claimant who prevails on a claim of 
discrimination involving a noncredit benefit program of 
the Department shall be entitled to a payment by the 
Department in a total amount of $3,000, without regard 
to the number of such claims on which the claimant pre-
vails. 
(g) ACTUAL DAMAGES.—A claimant who files a claim under 
this section for discrimination under subsection (b) but not under 
subsection (f) and who prevails on the claim shall be entitled 
to actual damages sustained by the claimant. 
(h) LIMITATION ON FORECLOSURES.—Notwithstanding any other 
provision of law, during the pendency of a Pigford claim, the Sec-
retary may not begin acceleration on or foreclosure of a loan if— 
(1) the borrower is a Pigford claimant; and
H. R. 6124—562 
(2) makes a prima facie case in an appropriate administra-
tive proceeding that the acceleration or foreclosure is related 
to a Pigford claim. 
(i) FUNDING.— 
(1) IN GENERAL.—Of the funds of the Commodity Credit 
Corporation, the Secretary shall make available for payments 
and debt relief in satisfaction of claims against the United 
States under subsection (b) and for any actions under subsection 
(g) $100,000,000 for fiscal year 2008, to remain available until 
expended. 
(2) AUTHORIZATION
OF
APPROPRIATIONS.—In addition to 
funds made available under paragraph (1), there are authorized 
to be appropriated such sums as are necessary to carry out 
this section. 
(j) REPORTING REQUIREMENTS.— 
(1) IN GENERAL.—Not later than 180 days after the date 
of the enactment of this Act and every 180 days thereafter 
until the funds made available under subsection (i) are depleted, 
the Secretary shall submit to the Committee on the Judiciary 
of the House of Representatives and the Committee on the 
Judiciary of the Senate a report that describes the status of 
available funds under subsection (i) and the number of pending 
claims under subsection (f). 
(2) DEPLETION
OF
FUNDS
REPORT.—In addition to the 
reports required under paragraph (1), the Secretary shall 
submit to the Committee on the Judiciary of the House of 
Representatives and the Committee on the Judiciary of the 
Senate a report that notifies the Committees when 75 percent 
of the funds made available under subsection (i)(1) have been 
depleted. 
(k) TERMINATION OF AUTHORITY.—The authority to file a claim 
under this section terminates 2 years after the date of the enact-
ment of this Act. 
SEC. 14013. OFFICE OF ADVOCACY AND OUTREACH. 
(a) IN GENERAL.—The Department of Agriculture Reorganiza-
tion Act of 1994 is amended by inserting after section 226A (7 
U.S.C. 6933) the following: 
‘‘SEC. 226B. OFFICE OF ADVOCACY AND OUTREACH. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) BEGINNING FARMER OR RANCHER.—The term ‘beginning 
farmer or rancher’ has the meaning given the term in section 
343(a) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1991(a)). 
‘‘(2) OFFICE.—The term ‘Office’ means the Office of 
Advocacy and Outreach established under this section. 
‘‘(3) SOCIALLY DISADVANTAGED FARMER OR RANCHER.—The 
term ‘socially disadvantaged farmer or rancher’ has the 
meaning given the term in section 2501(e) of the Food, Agri-
culture, Conservation, and Trade Act of 1990 (7 U.S.C. 2279(e)). 
‘‘(b) ESTABLISHMENT AND PURPOSE.— 
‘‘(1) IN GENERAL.—The Secretary shall establish within the 
executive operations of the Department an office to be known 
as the ‘Office of Advocacy and Outreach’— 
‘‘(A) to improve access to programs of the Department; 
and 
‘‘(B) to improve the viability and profitability of—
H. R. 6124—563 
‘‘(i) small farms and ranches; 
‘‘(ii) beginning farmers or ranchers; and 
‘‘(iii) socially disadvantaged farmers or ranchers. 
‘‘(2) DIRECTOR.—The Office shall be headed by a Director, 
to be appointed by the Secretary from among the competitive 
service. 
‘‘(c) DUTIES.—The duties of the Office shall be to ensure small 
farms and ranches, beginning farmers or ranchers, and socially 
disadvantaged farmers or ranchers access to, and equitable partici-
pation in, programs and services of the Department by— 
‘‘(1) establishing and monitoring the goals and objectives 
of the Department to increase participation in programs of 
the Department by small, beginning, or socially disadvantaged 
farmers or ranchers; 
‘‘(2) assessing the effectiveness of Department outreach 
programs; 
‘‘(3) developing and implementing a plan to coordinate out-
reach activities and services provided by the Department; 
‘‘(4) providing input to the agencies and offices on pro-
grammatic and policy decisions; 
‘‘(5) measuring outcomes of the programs and activities 
of the Department on small farms and ranches, beginning 
farmers or ranchers, and socially disadvantaged farmers or 
ranchers programs; 
‘‘(6) recommending new initiatives and programs to the 
Secretary; and 
‘‘(7) carrying out any other related duties that the Secretary 
determines to be appropriate. 
‘‘(d) SOCIALLY DISADVANTAGED FARMERS GROUP.— 
‘‘(1) ESTABLISHMENT.—The Secretary shall establish within 
the Office the Socially Disadvantaged Farmers Group. 
‘‘(2) OUTREACH AND ASSISTANCE.—The Socially Disadvan-
taged Farmers Group— 
‘‘(A) shall carry out section 2501 of the Food, Agri-
culture, Conservation, and Trade Act of 1990 (7 U.S.C. 
2279); and 
‘‘(B) in the case of activities described in section 2501(a) 
of that Act, may conduct such activities through other 
agencies and offices of the Department. 
‘‘(3) 
SOCIALLY
DISADVANTAGED
FARMERS
AND
FARM-
WORKERS.—The Socially Disadvantaged Farmers Group shall 
oversee the operations of— 
‘‘(A) the Advisory Committee on Minority Farmers 
established under section 14009 of the Food, Conservation, 
and Energy Act of 2008; and 
‘‘(B) the position of Farmworker Coordinator estab-
lished under subsection (f). 
‘‘(4) OTHER DUTIES.— 
‘‘(A) 
IN
GENERAL.—The 
Socially 
Disadvantaged 
Farmers Group may carry out other duties to improve 
access to, and participation in, programs of the Department 
by socially disadvantaged farmers or ranchers, as deter-
mined by the Secretary. 
‘‘(B) OFFICE OF OUTREACH AND DIVERSITY.—The Office 
of Advocacy and Outreach shall carry out the functions 
and duties of the Office of Outreach and Diversity carried 
out by the Assistant Secretary for Civil Rights as such
H. R. 6124—564 
functions and duties existed immediately before the date 
of the enactment of this section. 
‘‘(e) SMALL FARMS AND BEGINNING FARMERS AND RANCHERS 
GROUP.— 
‘‘(1) ESTABLISHMENT.—The Secretary shall establish within 
the Office the Small Farms and Beginning Farmers and 
Ranchers Group. 
‘‘(2) DUTIES.— 
‘‘(A) OVERSEE OFFICES.—The Small Farms and Begin-
ning Farmers and Ranchers Group shall oversee the oper-
ations of the Office of Small Farms Coordination estab-
lished by Departmental Regulation 9700-1 (August 3, 2006). 
‘‘(B) BEGINNING FARMER AND RANCHER DEVELOPMENT 
PROGRAM.—The Small Farms and Beginning Farmers and 
Ranchers Group shall consult with the National Institute 
for Food and Agriculture on the administration of the begin-
ning farmer and rancher development program established 
under section 7405 of the Farm Security and Rural Invest-
ment Act of 2002 (7 U.S.C. 3319f). 
‘‘(C) ADVISORY
COMMITTEE
FOR
BEGINNING
FARMERS 
AND RANCHERS.—The Small Farms and Beginning Farmers 
and Ranchers Group shall coordinate the activities of the 
Group with the Advisory Committee for Beginning Farmers 
and Ranchers established under section 5(b) of the Agricul-
tural Credit Improvement Act of 1992 (7 U.S.C. 1621 note; 
Public Law 102–554). 
‘‘(D) OTHER DUTIES.—The Small Farms and Beginning 
Farmers and Ranchers Group may carry out other duties 
to improve access to, and participation in, programs of 
the Department by small farms and ranches and beginning 
farmers or ranchers, as determined by the Secretary. 
‘‘(f) FARMWORKER COORDINATOR.— 
‘‘(1) ESTABLISHMENT.—The Secretary shall establish within 
the Office the position of Farmworker Coordinator (referred 
to in this subsection as the ‘Coordinator’). 
‘‘(2) DUTIES.—The Secretary shall delegate to the Coordi-
nator responsibility for the following: 
‘‘(A) Assisting in administering the program estab-
lished by section 2281 of the Food, Agriculture, Conserva-
tion, and Trade Act of 1990 (42 U.S.C. 5177a). 
‘‘(B) Serving as a liaison to community-based nonprofit 
organizations that represent and have demonstrated 
experience serving low-income migrant and seasonal farm-
workers. 
‘‘(C) Coordinating with the Department, other Federal 
agencies, and State and local governments to ensure that 
farmworker needs are assessed and met during declared 
disasters and other emergencies. 
‘‘(D) Consulting within the Office and with other enti-
ties to better integrate farmworker perspectives, concerns, 
and interests into the ongoing programs of the Department. 
‘‘(E) Consulting with appropriate institutions on 
research, program improvements, or agricultural education 
opportunities that assist low-income and migrant seasonal 
farmworkers. 
‘‘(F) Assisting farmworkers in becoming agricultural 
producers or landowners.
H. R. 6124—565 
‘‘(3) 
AUTHORIZATION
OF
APPROPRIATIONS.—There 
are 
authorized to be appropriated such sums as are necessary to 
carry out this subsection for each of fiscal years 2009 through 
2012.’’. 
(b) CONFORMING AMENDMENT.—Section 296(b) of the Depart-
ment of Agriculture Reorganization Act of 1994 (7 U.S.C. 7014(b)), 
as amended by section 7511(b), is further amended— 
(1) in paragraph (5), by striking ‘‘; or’’ and inserting ‘‘;’’; 
(2) in paragraph (6), by striking the period and inserting 
‘‘; or’’; and 
(3) by adding at the end the following new paragraph: 
‘‘(7) the authority of the Secretary to establish in the 
Department the Office of Advocacy and Outreach in accordance 
with section 226B.’’. 
Subtitle B—Agricultural Security 
SEC. 14101. SHORT TITLE. 
This subtitle may be cited as the ‘‘Agricultural Security 
Improvement Act of 2008’’. 
SEC. 14102. DEFINITIONS. 
In this subtitle: 
(1) AGENT.—The term ‘‘agent’’ means a nuclear, biological, 
chemical, or radiological substance that causes agricultural dis-
ease or the adulteration of products regulated by the Secretary 
of Agriculture under any provision of law. 
(2) AGRICULTURAL
BIOSECURITY.—The term ‘‘agricultural 
biosecurity’’ means protection from an agent that poses a threat 
to— 
(A) plant or animal health; 
(B) public health as it relates to the adulteration of 
products regulated by the Secretary of Agriculture under 
any provision of law that is caused by exposure to an 
agent; or 
(C) the environment as it relates to agriculture facili-
ties, farmland, and air and water within the immediate 
vicinity of an area associated with an agricultural disease 
or outbreak. 
(3) AGRICULTURAL COUNTERMEASURE.—The term ‘‘agricul-
tural countermeasure’’— 
(A) means a product, practice, or technology that is 
intended to enhance or maintain the agricultural biosecu-
rity of the United States; and 
(B) does not include a product, practice, or technology 
used solely in response to a human medical incident or 
public health emergency not related to agriculture. 
(4) AGRICULTURAL DISEASE.—The term ‘‘agricultural dis-
ease’’ has the meaning given the term by the Secretary. 
(5) AGRICULTURAL DISEASE EMERGENCY.—The term ‘‘agri-
cultural disease emergency’’ means an incident of agricultural 
disease that requires prompt action to prevent significant dam-
age to people, plants, or animals. 
(6) AGROTERRORIST
ACT.—The term ‘‘agroterrorist act’’ 
means an act that— 
(A) causes or attempts to cause—
H. R. 6124—566 
(i) damage to agriculture; or 
(ii) injury to a person associated with agriculture; 
and 
(B) is committed or appears to be committed with 
the intent to— 
(i) intimidate or coerce a civilian population; or 
(ii) disrupt the agricultural industry in order to 
influence the policy of a government by intimidation 
or coercion. 
(7) ANIMAL.—The term ‘‘animal’’ has the meaning given 
the term in section 10403 of the Animal Health Protection 
Act of 2002 (7 U.S.C. 8302). 
(8) DEPARTMENT.—The term ‘‘Department’’ means the 
Department of Agriculture. 
(9) DEVELOPMENT.—The term ‘‘development’’ means— 
(A) research leading to the identification of products 
or technologies intended for use as agricultural counter-
measures to protect animal health; 
(B) the formulation, production, and subsequent modi-
fication of those products or technologies; 
(C) the conduct of in vitro and in vivo studies; 
(D) the conduct of field, efficacy, and safety studies; 
(E) the preparation of an application for marketing 
approval for submission to an applicable agency; or 
(F) other actions taken by an applicable agency in 
a case in which an agricultural countermeasure is procured 
or used prior to issuance of a license or other form of 
Federal Government approval. 
(10) PLANT.—The term ‘‘plant’’ has the meaning given the 
term in section 411 of the Plant Protection Act of 2000 (7 
U.S.C. 7702). 
(11) QUALIFIED
AGRICULTURAL
COUNTERMEASURE.—The 
term ‘‘qualified agricultural countermeasure’’ means an agricul-
tural countermeasure that the Secretary, in consultation with 
the Secretary of Homeland Security, determines to be a priority 
in order to address an agricultural biosecurity threat. 
CHAPTER 1—AGRICULTURAL SECURITY 
SEC. 14111. OFFICE OF HOMELAND SECURITY. 
(a) ESTABLISHMENT.—There is established within the Depart-
ment the Office of Homeland Security (in this section referred 
to as the ‘‘Office’’). 
(b) DIRECTOR.—The Office shall be headed by a Director of 
Homeland Security, who shall be appointed by the Secretary. 
(c) RESPONSIBILITIES.—The Director of Homeland Security 
shall— 
(1) coordinate all homeland security activities of the 
Department, including integration and coordination of inter-
agency emergency response plans for— 
(A) agricultural disease emergencies; 
(B) agroterrorist acts; and 
(C) other threats to agricultural biosecurity; 
(2) act as the primary liaison on behalf of the Department 
with other Federal departments and agencies on the coordina-
tion of efforts and interagency activities pertaining to agricul-
tural biosecurity; and
H. R. 6124—567 
(3) advise the Secretary on policies, regulations, processes, 
budget, and actions pertaining to homeland security. 
SEC. 14112. AGRICULTURAL BIOSECURITY COMMUNICATION CENTER. 
(a) ESTABLISHMENT.—The Secretary shall establish a commu-
nication center within the Department to— 
(1) collect and disseminate information and prepare for 
an agricultural disease emergency, agroterrorist act, or other 
threat to agricultural biosecurity; and 
(2) coordinate activities described in paragraph (1) among 
agencies and offices within the Department. 
(b) RELATION TO EXISTING DHS COMMUNICATION SYSTEMS.— 
(1) CONSISTENCY AND COORDINATION.—The communication 
center established under subsection (a) shall, to the maximum 
extent practicable, share and coordinate the dissemination of 
timely information with the Department of Homeland Security 
and other communication systems of appropriate Federal 
departments and agencies. 
(2) AVOIDING REDUNDANCIES.—Paragraph (1) shall not be 
construed to impede, conflict with, or duplicate the communica-
tions activities performed by the Secretary of Homeland Secu-
rity under any provision of law. 
(c) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 
to be appropriated such sums as may be necessary to carry out 
this section for each of fiscal years 2008 through 2012. 
SEC. 14113. ASSISTANCE TO BUILD LOCAL CAPACITY IN AGRICUL-
TURAL BIOSECURITY PLANNING, PREPAREDNESS, AND 
RESPONSE. 
(a) ADVANCED TRAINING PROGRAMS.— 
(1) GRANT ASSISTANCE.—The Secretary shall establish a 
competitive grant program to support the development and 
expansion of advanced training programs in agricultural bio-
security planning and response for food science professionals 
and veterinarians. 
(2) AUTHORIZATION OF APPROPRIATIONS.—There are author-
ized to be appropriated to the Secretary such sums as may 
be necessary to carry out this subsection for each of fiscal 
years 2008 through 2012. 
(b) ASSESSMENT OF RESPONSE CAPABILITY.— 
(1) GRANT
AND
LOAN
ASSISTANCE.—The Secretary shall 
establish a competitive grant and low-interest loan assistance 
program to assist States in assessing agricultural disease 
response capability. 
(2) AUTHORIZATION OF APPROPRIATIONS.—There is author-
ized to be appropriated to carry out this subsection $25,000,000 
for each of fiscal years 2008 through 2012. 
CHAPTER 2—OTHER PROVISIONS 
SEC. 14121. RESEARCH AND DEVELOPMENT OF AGRICULTURAL 
COUNTERMEASURES. 
(a) GRANT PROGRAM.— 
(1) COMPETITIVE
GRANT
PROGRAM.—The Secretary shall 
establish a competitive grant program to encourage basic and 
applied research and the development of qualified agricultural 
countermeasures.
H. R. 6124—568 
(2) WAIVER IN EMERGENCIES.—The Secretary may waive 
the requirement under paragraph (1) that a grant be provided 
on a competitive basis if— 
(A) the Secretary has declared a plant or animal dis-
ease emergency under the Plant Protection Act (7 U.S.C. 
7701 et seq.) or the Animal Health Protection Act (7 U.S.C. 
8301 et seq.); and 
(B) waiving the requirement would lead to the rapid 
development of a qualified agricultural countermeasure, 
as determined by the Secretary. 
(b) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 
to be appropriated to carry out this section $50,000,000 for each 
of fiscal years 2008 through 2012. 
SEC. 14122. AGRICULTURAL BIOSECURITY GRANT PROGRAM. 
(a) COMPETITIVE GRANT PROGRAM.—The Secretary shall estab-
lish a competitive grant program to promote the development of 
teaching programs in agriculture, veterinary medicine, and dis-
ciplines closely allied to the food and agriculture system to increase 
the number of trained individuals with an expertise in agricultural 
biosecurity. 
(b) ELIGIBILITY.—The Secretary may award a grant under this 
section only to an entity that is— 
(1) an accredited school of veterinary medicine; or 
(2) a department of an institution of higher education with 
a primary focus on— 
(A) comparative medicine; 
(B) veterinary science; or 
(C) agricultural biosecurity. 
(c) PREFERENCE.—The Secretary shall give preference in 
awarding grants based on the ability of an applicant— 
(1) to increase the number of veterinarians or individuals 
with advanced degrees in food and agriculture disciplines who 
are trained in agricultural biosecurity practice areas; 
(2) to increase research capacity in areas of agricultural 
biosecurity; or 
(3) to fill critical agricultural biosecurity shortage situations 
outside of the Federal Government. 
(d) USE OF FUNDS..— 
(1) IN GENERAL.—Amounts received under this section shall 
be used by a grantee to pay— 
(A) costs associated with the acquisition of equipment 
and other capital costs relating to the expansion of food, 
agriculture, and veterinary medicine teaching programs 
in agricultural biosecurity; 
(B) capital costs associated with the expansion of aca-
demic programs that offer postgraduate training for veteri-
narians or concurrent training for veterinary students in 
specific areas of specialization; or 
(C) other capacity and infrastructure program costs 
that the Secretary considers appropriate. 
(2) LIMITATION.—Funds received under this section may 
not be used for the construction, renovation, or rehabilitation 
of a building or facility. 
(e) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated sums as are necessary to carry out this section
H. R. 6124—569 
for each of fiscal years 2008 through 2012, to remain available 
until expended. 
Subtitle C—Other Miscellaneous 
Provisions 
SEC. 14201. COTTON CLASSIFICATION SERVICES. 
Section 3a of the Act of March 3, 1927 (7 U.S.C. 473a), is 
amended to read as follows: 
‘‘SEC. 3a. COTTON CLASSIFICATION SERVICES. 
‘‘(a) IN GENERAL.—The Secretary of Agriculture (referred to 
in this section as the ‘Secretary’) shall— 
‘‘(1) make cotton classification services available to pro-
ducers of cotton; and 
‘‘(2) provide for the collection of classification fees from 
participating producers or agents that voluntarily agree to col-
lect and remit the fees on behalf of producers. 
‘‘(b) FEES.— 
‘‘(1) USE OF FEES.—Classification fees collected under sub-
section (a)(2) and the proceeds from the sales of samples sub-
mitted under this section shall, to the maximum extent prac-
ticable, be used to pay the cost of the services provided under 
this section, including administrative and supervisory costs. 
‘‘(2) 
ANNOUNCEMENT
OF
FEES.—The 
Secretary 
shall 
announce a uniform classification fee and any applicable sur-
charge for classification services not later than June 1 of the 
year in which the fee applies. 
‘‘(c) CONSULTATION.— 
‘‘(1) IN GENERAL.—In establishing the amount of fees under 
this section, the Secretary shall consult with representatives 
of the United States cotton industry. 
‘‘(2) EXEMPTION.—The Federal Advisory Committee Act (5 
U.S.C. App.) shall not apply to consultations with representa-
tives of the United States cotton industry under this section. 
‘‘(d) CREDITING OF FEES.—Any fees collected under this section 
and under section 3d, late payment penalties, the proceeds from 
the sales of samples, and interest earned from the investment 
of such funds shall— 
‘‘(1) be credited to the current appropriation account that 
incurs the cost of services provided under this section and 
section 3d; and 
‘‘(2) remain available without fiscal year limitation to pay 
the expenses of the Secretary in providing those services. 
‘‘(e) INVESTMENT
OF FUNDS.—Funds described in subsection 
(d) may be invested— 
‘‘(1) by the Secretary in insured or fully collateralized, 
interest-bearing accounts; or 
‘‘(2) at the discretion of the Secretary, by the Secretary 
of the Treasury in United States Government debt instruments. 
‘‘(f) LEASE AGREEMENTS.—Notwithstanding any other provision 
of law, the Secretary may enter into long-term lease agreements 
that exceed 5 years or may take title to property (including through 
purchase agreements) for the purpose of obtaining offices to be 
used for the classification of cotton in accordance with this Act,
H. R. 6124—570 
if the Secretary determines that action would best effectuate the 
purposes of this Act. 
‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—To the extent that 
financing is not available from fees and the proceeds from the 
sales of samples, there are authorized to be appropriated such 
sums as are necessary to carry out this section.’’. 
SEC. 14202. DESIGNATION OF STATES FOR COTTON RESEARCH AND 
PROMOTION. 
Section 17(f) of the Cotton Research and Promotion Act (7 
U.S.C. 2116(f)) is amended— 
(1) by striking ‘‘(f) The term’’ and inserting the following: 
‘‘(f) COTTON-PRODUCING STATE.— 
‘‘(1) IN GENERAL.—The term’’; 
(2) by striking ‘‘more, and the term’’ and all that follows 
through the end of the subsection and inserting the following: 
‘‘more. 
‘‘(2) 
INCLUSIONS.—The 
term 
‘cotton-producing 
State’ 
includes— 
‘‘(A) any combination of States described in paragraph 
(1); and 
‘‘(B) effective beginning with the 2008 crop of cotton, 
the States of Kansas, Virginia, and Florida.’’. 
SEC. 
14203. 
GRANTS 
TO 
REDUCE 
PRODUCTION 
OF 
METHAMPHETAMINES FROM ANHYDROUS AMMONIA. 
(a) DEFINITIONS.—In this section: 
(1) ELIGIBLE ENTITY.—The term ‘‘eligible entity’’ means— 
(A) a producer of agricultural commodities; 
(B) a cooperative association, a majority of the mem-
bers of which produce or process agricultural commodities; 
or 
(C) a person in the trade or business of— 
(i) selling an agricultural product (including an 
agricultural chemical) at retail, predominantly to 
farmers and ranchers; or 
(ii) aerial and ground application of an agricultural 
chemical. 
(2) NURSE TANK.—The term ‘‘nurse tank’’ shall be consid-
ered to be a cargo tank (within the meaning of section 
173.315(m) of title 49, Code of Federal Regulations, as in effect 
as of the date of the enactment of this Act). 
(b) GRANT AUTHORITY.—The Secretary may make a grant to 
an eligible entity to enable the eligible entity to obtain and add 
to an anhydrous ammonia fertilizer nurse tank a physical lock 
or a substance to reduce the amount of methamphetamine that 
can be produced from any anhydrous ammonia removed from the 
nurse tank. 
(c) GRANT AMOUNT.—The amount of a grant made under this 
section to an eligible entity shall be the product obtained by multi-
plying— 
(1) an amount not less than $40 and not more than $60, 
as determined by the Secretary; and 
(2) the number of fertilizer nurse tanks of the eligible 
entity. 
(d) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 
to be appropriated to the Secretary to make grants under this
H. R. 6124—571 
section $15,000,000 for the period of fiscal years 2008 through 
2012. 
SEC. 14204. GRANTS TO IMPROVE SUPPLY, STABILITY, SAFETY, AND 
TRAINING OF AGRICULTURAL LABOR FORCE. 
(a) DEFINITION OF ELIGIBLE ENTITY.—In this section, the term 
‘‘eligible entity’’ means an entity described in section 379C(a) of 
the Consolidated Farm and Rural Development Act (7 U.S.C. 
2008q(a)). 
(b) GRANTS.— 
(1) IN
GENERAL.—To assist agricultural employers and 
farmworkers by improving the supply, stability, safety, and 
training of the agricultural labor force, the Secretary may pro-
vide grants to eligible entities for use in providing services 
to assist farmworkers who are citizens or otherwise legally 
present in the United States in securing, retaining, upgrading, 
or returning from agricultural jobs. 
(2) ELIGIBLE SERVICES.—The services referred to in para-
graph (1) include— 
(A) agricultural labor skills development; 
(B) the provision of agricultural labor market informa-
tion; 
(C) transportation; 
(D) short-term housing while in transit to an agricul-
tural worksite; 
(E) workplace literacy and assistance with English as 
a second language; 
(F) health and safety instruction, including ways of 
safeguarding the food supply of the United States; and 
(G) such other services as the Secretary determines 
to be appropriate. 
(c) LIMITATION ON ADMINISTRATIVE EXPENSES.—Not more than 
15 percent of the funds made available to carry out this section 
for a fiscal year may be used to pay for administrative expenses. 
(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated such sums as are necessary to carry out this 
section for each of fiscal years 2008 through 2012. 
SEC. 14205. AMENDMENT TO THE RIGHT TO FINANCIAL PRIVACY ACT 
OF 1978. 
Section 1113(k) of the Right to Financial Privacy Act of 1978 
(12 U.S.C. 3413(k)) is amended— 
(1) by striking the subsection heading and inserting the 
following: 
‘‘(k) DISCLOSURE NECESSARY FOR PROPER ADMINISTRATION OF 
PROGRAMS OF CERTAIN GOVERNMENT AUTHORITIES.—’’; and 
(2) by striking paragraph (2) and inserting the following: 
‘‘(2) Nothing in this title shall apply to the disclosure by 
the financial institution of information contained in the finan-
cial records of any customer to any Government authority that 
certifies, disburses, or collects payments, where the disclosure 
of such information is necessary to, and such information is 
used solely for the purpose of— 
‘‘(A) verification of the identity of any person or proper 
routing and delivery of funds in connection with the 
issuance of a Federal payment or collection of funds by 
a Government authority; or
H. R. 6124—572 
‘‘(B) the investigation or recovery of an improper Fed-
eral payment or collection of funds or an improperly nego-
tiated Treasury check. 
‘‘(3) Notwithstanding any other provision of law, a request 
authorized by paragraph (1) or (2) (and the information con-
tained therein) may be used by the financial institution or 
its agents solely for the purpose of providing information con-
tained in the financial records of the customer to the Govern-
ment authority requesting the information, and the financial 
institution and its agents shall be barred from redisclosure 
of such information. Any Government authority receiving 
information pursuant to paragraph (1) or (2) may not disclose 
or use the information, except for the purposes set forth in 
such paragraph.’’. 
SEC. 14206. REPORT ON STORED QUANTITIES OF PROPANE. 
(a) REPORT.— 
(1) IN GENERAL.—Not later than 240 days after the date 
of the enactment of this Act, the Secretary of Homeland Secu-
rity (referred to in this section as the ‘‘Secretary’’) shall submit 
to the Committee on Agriculture, Nutrition, and Forestry of 
the Senate and the Committee on Agriculture of the House 
of Representatives a report describing the effect of interim 
or final regulations issued by the Secretary pursuant to section 
550(a) of the Department of Homeland Security Appropriations 
Act, 2007 (6 U.S.C. 121 note; Public Law 109–295), with respect 
to possession of quantities of propane that meet or exceed 
the screening threshold quantity for propane established in 
the final rule under that section. 
(2) INCLUSIONS.—The report under paragraph (1) shall 
include a description of— 
(A) the number of facilities that completed a top screen 
consequence assessment due to possession of quantities 
of propane that meet or exceed the listed screening 
threshold quantity for propane; 
(B) the number of agricultural facilities that completed 
the top screen consequence assessment due to possession 
of quantities of propane that meet or exceed the listed 
screening threshold quantity for propane; 
(C) the number of propane facilities initially deter-
mined to be high risk by the Secretary; 
(D) the number of propane facilities— 
(i) required to complete a security vulnerability 
assessment or a site security plan; or 
(ii) that submit to the Secretary an alternative 
security program; 
(E) the number of propane facilities that file an appeal 
of a finding under the final rule described in paragraph 
(1); and 
(F) to the extent available, the average cost of— 
(i) completing a top screen consequence assessment 
requirement; 
(ii) completing a security vulnerability assessment; 
and 
(iii) completing and implementing a site security 
plan; and
H. R. 6124—573 
(3) FORM.—The report under paragraph (1) shall be sub-
mitted in unclassified form, but may include a classified annex. 
(b) EDUCATIONAL OUTREACH.—Not later than 30 days after 
the date of the enactment of this Act, the Secretary shall conduct 
educational outreach activities for rural facilities that may be 
required to complete a top screen consequence assessment due 
to possession of propane in a quantity that meets or exceeds the 
listed screening threshold quantity for propane. 
SEC. 14207. PROHIBITIONS ON DOG FIGHTING VENTURES. 
(a) IN GENERAL.—Section 26 of the Animal Welfare Act (7 
U.S.C. 2156) is amended— 
(1) in subsection (a)— 
(A) in paragraph (1), by striking ‘‘, if any animal in 
the venture was moved in interstate or foreign commerce’’; 
and 
(B) in the heading of paragraph (2), by striking ‘‘STATE’’ 
and inserting ‘‘STATE’’; 
(2) in subsection (b)— 
(A) by striking ‘‘(b) It shall be’’ and inserting the fol-
lowing: 
‘‘(b) BUYING, SELLING, DELIVERING, POSSESSING, TRAINING, OR 
TRANSPORTING ANIMALS FOR PARTICIPATION IN ANIMAL FIGHTING 
VENTURE.—It shall be’’; and 
(B) by striking ‘‘transport, deliver’’ and all that follows 
through ‘‘participate’’ and inserting ‘‘possess, train, trans-
port, deliver, or receive any animal for purposes of having 
the animal participate’’; 
(3) in subsection (c)— 
(A) by striking ‘‘(c) It shall be’’ and inserting the fol-
lowing: 
‘‘(c) USE OF POSTAL SERVICE OR OTHER INTERSTATE INSTRUMEN-
TALITY FOR PROMOTING OR FURTHERING ANIMAL FIGHTING VEN-
TURE.—It shall be’’; and 
(B) by inserting ‘‘advertising an animal, or an 
instrument described in subsection (e), for use in an animal 
fighting venture,’’ after ‘‘for purposes of’’; 
(4) in subsection (d), by striking ‘‘(d) Notwithstanding’’ 
and inserting the following: 
‘‘(d) VIOLATION OF STATE LAW.—Notwithstanding’’; 
(5) in subsection (e), by striking ‘‘(e) It shall be’’ and 
inserting the following: 
‘‘(e) BUYING, SELLING, DELIVERING, OR TRANSPORTING SHARP 
INSTRUMENTS FOR USE IN ANIMAL FIGHTING VENTURE.—It shall 
be’’; 
(6) in subsection (f)— 
(A) by striking ‘‘(f) The Secretary’’ and inserting the 
following: 
‘‘(f) INVESTIGATION OF VIOLATIONS BY SECRETARY; ASSISTANCE 
BY OTHER FEDERAL AGENCIES; ISSUANCE
OF SEARCH WARRANT; 
FORFEITURE; COSTS
RECOVERABLE
IN
FORFEITURE
OR
CIVIL 
ACTION.—The Secretary’’; and 
(B) in the last sentence— 
(i) by striking ‘‘by the United States’’; 
(ii) by inserting ‘‘(1)’’ after ‘‘owner of the animals’’; 
and
H. R. 6124—574 
(iii) by striking ‘‘proceeding or in’’ and inserting 
‘‘proceeding, or (2) in’’; 
(7) in subsection (g)— 
(A) by striking ‘‘(g) For purposes of’’ and inserting 
the following: 
‘‘(g) DEFINITIONS.—In’’; 
(B) in paragraph (1), by striking ‘‘any event’’ and all 
that follows through ‘‘entertainment’’ and inserting ‘‘any 
event, in or affecting interstate or foreign commerce, that 
involves a fight conducted or to be conducted between 
at least 2 animals for purposes of sport, wagering, or enter-
tainment,’’; 
(C) by striking paragraph (2); 
(D) in paragraph (5)— 
(i) by striking ‘‘dog or other’’; and 
(ii) by striking ‘‘; and’’ and inserting a period; 
and 
(E) by redesignating paragraphs (3) through (5) as 
paragraphs (2) through (4), respectively; 
(8) by redesignating subsections (h) and (i) as subsections 
(i) and (j), respectively; 
(9) in subsection (i) (as so redesignated), by striking ‘‘(i)(1) 
The provisions’’ and inserting the following: 
‘‘(i) CONFLICT WITH STATE LAW.— 
‘‘(1) IN GENERAL.—The provisions’’; 
(10) in subsection (j) (as so redesignated), by striking ‘‘(j) 
The criminal’’ and inserting the following: 
‘‘(j) CRIMINAL PENALTIES.—The criminal’’; and 
(11) in subsection (g)(6), by striking ‘‘(6) the conduct’’ and 
inserting the following: 
‘‘(h) RELATIONSHIP TO OTHER PROVISIONS.—The conduct’’. 
(b) ENFORCEMENT OF ANIMAL FIGHTING PROHIBITIONS.—Section 
49 of title 18, United States Code, is amended by striking ‘‘3 
years’’ and inserting ‘‘5 years’’. 
SEC. 14208. DEPARTMENT OF AGRICULTURE CONFERENCE TRANS-
PARENCY. 
(a) REPORT.— 
(1) REQUIREMENT.—Not later than September 30 of each 
year, the Secretary of Agriculture shall submit to the Com-
mittee on Agriculture of the House of Representatives and 
the Committee on Agriculture, Nutrition, and Forestry of the 
Senate, a report on conferences sponsored or held by the 
Department of Agriculture or attended by employees of the 
Department of Agriculture. 
(2) CONTENTS.—Each report under paragraph (1) shall con-
tain— 
(A) for each conference sponsored or held by the 
Department or attended by employees of the Department— 
(i) the name of the conference; 
(ii) the location of the conference; 
(iii) the number of Department of Agriculture 
employees attending the conference; and 
(iv) the costs (including travel expenses) relating 
to such conference; and 
(B) for each conference sponsored or held by the 
Department of Agriculture for which the Department
H. R. 6124—575 
awarded a procurement contract, a description of the con-
tracting procedures related to such conference. 
(3) EXCLUSIONS.—The requirement in paragraph (1) shall 
not apply to any conference— 
(A) for which the cost to the Federal Government was 
less than $10,000; or 
(B) outside of the United States that is attended by 
the Secretary or the Secretary’s designee as an official 
representative of the United States government. 
(b) AVAILABILITY OF REPORT.—Each report submitted in accord-
ance with subsection (a) shall be posted in a searchable format 
on a Department of Agriculture website that is available to the 
public. 
(c) DEFINITION OF CONFERENCE.—In this section, the term ‘‘con-
ference’’— 
(1) means a meeting that— 
(A) is held for consultation, education, awareness, or 
discussion; 
(B) includes participants from at least one agency of 
the Department of Agriculture; 
(C) is held in whole or in part at a facility outside 
of an agency of the Department of Agriculture; and 
(D) involves costs associated with travel and lodging 
for some participants; and 
(2) does not include any training program that is continuing 
education or a curriculum-based educational program, provided 
that such training program is held independent of a conference 
of a non-governmental organization. 
SEC. 14209. FEDERAL INSECTICIDE, FUNGICIDE, AND RODENTICIDE 
ACT AMENDMENTS. 
(a) PAYMENT OF EXPENSES.—Section 17(d) of the Federal Insec-
ticide, Fungicide, and Rodenticide Act (7 U.S.C. 136o(d)) is 
amended— 
(1) by striking ‘‘The Administrator’’ and inserting the fol-
lowing: 
‘‘(1) IN GENERAL.—The Administrator’’; and 
(2) by adding at the end the following new paragraph: 
‘‘(2) DEPARTMENT
OF
STATE
EXPENSES.—Any expenses 
incurred by an employee of the Environmental Protection 
Agency who participates in any international technical, eco-
nomic, or policy review board, committee, or other official body 
that is meeting in relation to an international treaty shall 
be paid by the Department of State.’’. 
(b) CONTAINER RECYCLING.—Section 19(a) of the Federal Insec-
ticide, Fungicide, and Rodenticide Act (7 U.S.C. 136q(a)) is amended 
by adding at the end the following new paragraph: 
‘‘(4) CONTAINER RECYCLING.—The Secretary may promul-
gate a regulation for the return and recycling of disposable 
pesticide containers used for the distribution or sale of reg-
istered pesticide products in interstate commerce. Any such 
regulation requiring recycling of disposable pesticide containers 
shall not apply to antimicrobial pesticides (as defined in section 
2) or other pesticide products intended for non-agricultural 
uses.’’.
H. R. 6124—576 
SEC. 14210. IMPORTATION OF LIVE DOGS. 
(a) IN GENERAL.—The Animal Welfare Act is amended by 
adding after section 17 (7 U.S.C. 2147) the following: 
‘‘SEC. 18. IMPORTATION OF LIVE DOGS. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) IMPORTER.—The term ‘importer’ means any person 
who, for purposes of resale, transports into the United States 
puppies from a foreign country. 
‘‘(2) RESALE.—The term ‘resale’ includes any transfer of 
ownership or control of an imported dog of less than 6 months 
of age to another person, for more than de minimis consider-
ation. 
‘‘(b) REQUIREMENTS.— 
‘‘(1) IN GENERAL.—Except as provided in paragraph (2), 
no person shall import a dog into the United States for purposes 
of resale unless, as determined by the Secretary, the dog— 
‘‘(A) is in good health; 
‘‘(B) has received all necessary vaccinations; and 
‘‘(C) is at least 6 months of age, if imported for resale. 
‘‘(2) EXCEPTION.— 
‘‘(A) IN GENERAL.—The Secretary, by regulation, shall 
provide an exception to any requirement under paragraph 
(1) in any case in which a dog is imported for— 
‘‘(i) research purposes; or 
‘‘(ii) veterinary treatment. 
‘‘(B) LAWFUL
IMPORTATION
INTO
HAWAII.—Paragraph 
(1)(C) shall not apply to the lawful importation of a dog 
into the State of Hawaii from the British Isles, Australia, 
Guam, or New Zealand in compliance with the applicable 
regulations of the State of Hawaii and the other require-
ments of this section, if the dog is not transported out 
of the State of Hawaii for purposes of resale at less than 
6 months of age. 
‘‘(c) IMPLEMENTATION AND REGULATIONS.—The Secretary, the 
Secretary of Health and Human Services, the Secretary of Com-
merce, and the Secretary of Homeland Security shall promulgate 
such regulations as the Secretaries determine to be necessary to 
implement and enforce this section. 
‘‘(d) ENFORCEMENT.—An importer that fails to comply with 
this section shall— 
‘‘(1) be subject to penalties under section 19; and 
‘‘(2) provide for the care (including appropriate veterinary 
care), forfeiture, and adoption of each applicable dog, at the 
expense of the importer.’’. 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 
takes effect on the date of the enactment of this Act. 
SEC. 14211. PERMANENT DEBARMENT FROM PARTICIPATION IN 
DEPARTMENT 
OF 
AGRICULTURE 
PROGRAMS 
FOR 
FRAUD. 
(a) IN GENERAL.—Subject to subsection (b), the Secretary of 
Agriculture shall permanently debar an individual, organization, 
corporation, or other entity convicted of a felony for knowingly 
defrauding the United States in connection with any program 
administered by the Department of Agriculture from any subse-
quent participation in Department of Agriculture programs.
H. R. 6124—577 
(b) EXCEPTIONS.— 
(1) SECRETARY DETERMINATION.—The Secretary may reduce 
a debarment under subsection (a) to a period of not less than 
10 years if the Secretary considers it appropriate. 
(2) FOOD ASSISTANCE.—A debarment under subsection (a) 
shall not apply with respect to participation in domestic food 
assistance programs (as defined by the Secretary). 
SEC. 14212. PROHIBITION ON CLOSURE OR RELOCATION OF COUNTY 
OFFICES FOR THE FARM SERVICE AGENCY. 
(a) TEMPORARY PROHIBITION.— 
(1) IN GENERAL.—Subject to paragraph (2), until the date 
that is two years after the date of the enactment of this Act, 
the Secretary of Agriculture may not close or relocate a county 
or field office of the Farm Service Agency. 
(2) EXCEPTION.—Paragraph (1) shall not apply to— 
(A) an office that is located not more than 20 miles 
from another office of the Farm Service Agency; or 
(B) the relocation of an office within the same county 
in the course of routine leasing operations. 
(b) LIMITATION ON CLOSURE; NOTICE.— 
(1) LIMITATION.—After the period referred to in subsection 
(a)(1), the Secretary shall, before closing any office of the Farm 
Service Agency that is located more than 20 miles from another 
office of the Farm Service Agency, to the maximum extent 
practicable, first close any offices of the Farm Service Agency 
that— 
(A) are located less than 20 miles from another office 
of the Farm Service Agency; and 
(B) have two or fewer permanent full-time employees. 
(2) NOTICE.—After the period referred to in subsection 
(a)(1), the Secretary of Agriculture may not close a county 
or field office of the Farm Service Agency unless— 
(A) not later than 30 days after the Secretary proposes 
to close such office, the Secretary holds a public meeting 
regarding the proposed closure in the county in which 
such office is located; and 
(B) after the public meeting referred to in subpara-
graph (A), but not less than 90 days before the date on 
which the Secretary approves the closure of such office, 
the Secretary notifies the Committee on Agriculture and 
the Committee on Appropriations of the House of Rep-
resentatives, the Committee on Agriculture, Nutrition, and 
Forestry and the Committee on Appropriations of the 
Senate, each Senator representing the State in which the 
office proposed to be closed is located, and the member 
of the House of Representatives who represents the 
Congressional district in which the office proposed to be 
closed is located of the proposed closure of such office. 
SEC. 14213. USDA GRADUATE SCHOOL. 
(a) IN
GENERAL.—Section 921 of the Federal Agriculture 
Improvement and Reform Act of 1996 (7 U.S.C. 2279b) is amended— 
(1) in the heading, to read as follows:
H. R. 6124—578 
‘‘SEC. 921. DEPARTMENT OF AGRICULTURE EDUCATIONAL, TRAINING, 
AND PROFESSIONAL DEVELOPMENT ACTIVITIES.’’; and 
(2) by striking subsection (b) and inserting the following 
new subsection: 
‘‘(b) OPERATION
AS
NONAPPROPRIATED
FUND
INSTRUMEN-
TALITY.— 
‘‘(1) CEASE OPERATIONS.—Not later than October 1, 2009, 
the Secretary of Agriculture shall cease to maintain or operate 
a nonappropriated fund instrumentality of the United States 
to develop, administer, or provide educational training and 
professional development activities, including educational 
activities for Federal agencies, Federal employees, non-profit 
organizations, other entities, and members of the general 
public. 
‘‘(2) TRANSITION.— 
‘‘(A) IN
GENERAL.—The Secretary of Agriculture is 
authorized to use funds available to the Department of 
Agriculture and such resources of the Department as the 
Secretary considers appropriate (including the assignment 
of such employees of the Department as the Secretary 
considers appropriate) to assist the General Administrative 
Board of the Graduate School in the conversion of the 
Graduate School to an entity that is non-governmental 
and not a nonappropriated fund instrumentality of the 
United States, including such privatization activities not 
otherwise inconsistent with law or regulation. 
‘‘(B) TERMINATION OF AUTHORITY.—The authority under 
paragraph (1) shall terminate on the earlier of— 
‘‘(i) the completion of the transition of the Graduate 
School to an entity that is non-governmental and not 
a nonappropriated fund instrumentality of the United 
States, as determined by the Secretary; or 
‘‘(ii) September 30, 2009.’’. 
(b) PROCUREMENT PROCEDURES.—Notwithstanding the amend-
ments made by subsection (a), effective on the date of the enactment 
of this Act, the Graduate School of the Department of Agriculture 
shall be subject to Federal procurement laws and regulations in 
the same manner and subject to the same requirements as a private 
entity providing services to the Federal Government. 
SEC. 14214. FINES FOR VIOLATIONS OF THE ANIMAL WELFARE ACT. 
Section 19(b) of the Animal Welfare Act (7 U.S.C. 2149(b)) 
is amended in the first sentence by striking ‘‘not more than $2,500 
for each such violation’’ and inserting ‘‘not more than $10,000 
for each such violation’’. 
SEC. 14215. DEFINITION OF CENTRAL FILING SYSTEM. 
Section 1324(c)(2) of the Food Security Act of 1985 (7 U.S.C. 
1631(c)(2)) is amended— 
(1) in subparagraph (C)(ii)(II), by inserting after ‘‘such 
debtors’’ the following: ‘‘, except that the numerical list con-
taining social security or taxpayer identification numbers may 
be encrypted for security purposes if the Secretary of State 
provides a method by which an effective search of the encrypted 
numbers may be conducted to determine whether the farm 
product at issue is subject to 1 or more liens’’; and 
(2) in subparagraph (E)—
H. R. 6124—579 
(A) by striking ‘‘paragraph (C)’’ and inserting ‘‘subpara-
graph (C)’’; and 
(B) by inserting before the semicolon at the end the 
following: ‘‘except that— 
‘‘(i) the distribution of the portion of the master 
list may be in electronic, written, or printed form; 
and 
‘‘(ii) if social security or taxpayer identification 
numbers on the master list are encrypted, the Sec-
retary of State may distribute the master list only— 
‘‘(I) by compact disc or other electronic media 
that contains— 
‘‘(aa) the recorded list of debtor names; 
and 
‘‘(bb) an encryption program that enables 
the buyer, commission merchant, and selling 
agent to enter a social security number for 
matching against the recorded list of encrypted 
social security or taxpayer identification num-
bers; and 
‘‘(II) on the written request of the buyer, 
commission merchant, or selling agent, by paper 
copy of the list to the requestor’’. 
SEC. 14216. CONSIDERATION OF PROPOSED RECOMMENDATIONS OF 
STUDY ON USE OF CATS AND DOGS IN FEDERAL 
RESEARCH. 
(a) IN GENERAL.—The Secretary of Agriculture shall— 
(1) review— 
(A) any independent reviews conducted by a nationally 
recognized panel of experts of the use of Class B dogs 
and cats in federally supported research to determine how 
frequently such dogs and cats are used in research by 
the National Institutes of Health; and 
(B) any recommendations proposed by such panel out-
lining the parameters of such use; and 
(2) submit to the Committee on Agriculture of the House 
of Representatives and the Committee on Agriculture, Nutri-
tion, and Forestry of the Senate a report on how recommenda-
tions referred to in paragraph (1)(B) can be applied within 
the Department of Agriculture to ensure such dogs and cats 
are treated in accordance with regulations of the Department 
of Agriculture. 
(b) CLASS B DOGS AND CATS DEFINED.—In this section, the 
term ‘‘Class B dogs and cats’’ means dogs and cats obtained from 
a Class ‘‘B’’ licensee, as such term is defined in section 1.1 of 
title 9, Code of Federal Regulations. 
SEC. 14217. REGIONAL ECONOMIC AND INFRASTRUCTURE DEVELOP-
MENT. 
(a) IN GENERAL.—Title 40, United States Code, is amended— 
(1) by redesignating subtitle V as subtitle VI; and 
(2) by inserting after subtitle IV the following:
H. R. 6124—580 
‘‘Subtitle V—Regional Economic and 
Infrastructure Development 
‘‘Chapter ..................................................................................................................
‘‘151. GENERAL PROVISIONS ............................................................................ 15101 
‘‘153. REGIONAL COMMISSIONS ...................................................................... 15301 
‘‘155. FINANCIAL ASSISTANCE ......................................................................... 15501 
‘‘157. ADMINISTRATIVE PROVISIONS ............................................................. 15701 
‘‘CHAPTER 1—GENERAL PROVISIONS 
‘‘Sec. 
‘‘15101. Definitions. 
‘‘§ 15101. Definitions 
‘‘In this subtitle, the following definitions apply: 
‘‘(1) 
COMMISSION.—The 
term 
‘Commission’ 
means 
a 
Commission established under section 15301. 
‘‘(2) LOCAL
DEVELOPMENT
DISTRICT.—The term ‘local 
development district’ means an entity that— 
‘‘(A)(i) is an economic development district that is— 
‘‘(I) in existence on the date of the enactment of 
this chapter; and 
‘‘(II) located in the region; or 
‘‘(ii) if an entity described in clause (i) does not exist— 
‘‘(I) is organized and operated in a manner that 
ensures broad-based community participation and an 
effective opportunity for local officials, community 
leaders, and the public to contribute to the development 
and implementation of programs in the region; 
‘‘(II) is governed by a policy board with at least 
a simple majority of members consisting of— 
‘‘(aa) elected officials; or 
‘‘(bb) designees or employees of a general pur-
pose unit of local government that have been 
appointed to represent the unit of local govern-
ment; and 
‘‘(III) is certified by the Governor or appropriate 
State officer as having a charter or authority that 
includes the economic development of counties, por-
tions of counties, or other political subdivisions within 
the region; and 
‘‘(B) has not, as certified by the Federal Cochair-
person— 
‘‘(i) inappropriately used Federal grant funds from 
any Federal source; or 
‘‘(ii) appointed an officer who, during the period 
in which another entity inappropriately used Federal 
grant funds from any Federal source, was an officer 
of the other entity. 
‘‘(3) FEDERAL GRANT PROGRAM.—The term ‘Federal grant 
program’ means a Federal grant program to provide assistance 
in carrying out economic and community development activities. 
‘‘(4) 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).
H. R. 6124—581 
‘‘(5) NONPROFIT ENTITY.—The term ‘nonprofit entity’ means 
any organization described in section 501(c) of the Internal 
Revenue Code of 1986 and exempt from taxation under 501(a) 
of that Code that has been formed for the purpose of economic 
development. 
‘‘(6) REGION.—The term ‘region’ means the area covered 
by a Commission as described in subchapter II of chapter 
157. 
‘‘CHAPTER 2—REGIONAL COMMISSIONS 
‘‘Sec. 
‘‘15301. Establishment, membership, and employees. 
‘‘15302. Decisions. 
‘‘15303. Functions. 
‘‘15304. Administrative powers and expenses. 
‘‘15305. Meetings. 
‘‘15306. Personal financial interests. 
‘‘15307. Tribal participation. 
‘‘15308. Annual report. 
‘‘§ 15301. Establishment, membership, and employees 
‘‘(a) ESTABLISHMENT.—There are established the following 
regional Commissions: 
‘‘(1) The Southeast Crescent Regional Commission. 
‘‘(2) The Southwest Border Regional Commission. 
‘‘(3) The Northern Border Regional Commission. 
‘‘(b) MEMBERSHIP.— 
‘‘(1) FEDERAL
AND
STATE
MEMBERS.—Each Commission 
shall be composed of the following members: 
‘‘(A) A Federal Cochairperson, to be appointed by the 
President, by and with the advice and consent of the 
Senate. 
‘‘(B) The Governor of each participating State in the 
region of the Commission. 
‘‘(2) ALTERNATE MEMBERS.— 
‘‘(A) ALTERNATE FEDERAL COCHAIRPERSON.—The Presi-
dent shall appoint an alternate Federal Cochairperson for 
each Commission. The alternate Federal Cochairperson, 
when not actively serving as an alternate for the Federal 
Cochairperson, shall perform such functions and duties 
as are delegated by the Federal Cochairperson. 
‘‘(B) STATE
ALTERNATES.—The State member of a 
participating State may have a single alternate, who shall 
be appointed by the Governor of the State from among 
the members of the Governor’s cabinet or personal staff. 
‘‘(C) VOTING.—An alternate member shall vote in the 
case of the absence, death, disability, removal, or resigna-
tion of the Federal or State member for which the alternate 
member is an alternate. 
‘‘(3) COCHAIRPERSONS.—A Commission shall be headed by— 
‘‘(A) the Federal Cochairperson, who shall serve as 
a liaison between the Federal Government and the 
Commission; and 
‘‘(B) a State Cochairperson, who shall be a Governor 
of a participating State in the region and shall be elected 
by the State members for a term of not less than 1 year. 
‘‘(4) CONSECUTIVE TERMS.—A State member may not be 
elected to serve as State Cochairperson for more than 2 consecu-
tive terms.
H. R. 6124—582 
‘‘(c) COMPENSATION.— 
‘‘(1) FEDERAL
COCHAIRPERSONS.—Each Federal Cochair-
person shall be compensated by the Federal Government at 
level III of the Executive Schedule as set out in section 5314 
of title 5. 
‘‘(2) ALTERNATE FEDERAL COCHAIRPERSONS.—Each Federal 
Cochairperson’s alternate shall be compensated by the Federal 
Government at level V of the Executive Schedule as set out 
in section 5316 of title 5. 
‘‘(3) 
STATE
MEMBERS
AND
ALTERNATES.—Each 
State 
member and alternate shall be compensated by the State that 
they represent at the rate established by the laws of that 
State. 
‘‘(d) EXECUTIVE DIRECTOR AND STAFF.— 
‘‘(1) IN GENERAL.—A Commission shall appoint and fix the 
compensation of an executive director and such other personnel 
as are necessary to enable the Commission to carry out its 
duties. Compensation under this paragraph may not exceed 
the maximum rate of basic pay established for the Senior 
Executive Service under section 5382 of title 5, including any 
applicable locality-based comparability payment that may be 
authorized under section 5304(h)(2)(C) of that title. 
‘‘(2) EXECUTIVE DIRECTOR.—The executive director shall be 
responsible for carrying out the administrative duties of the 
Commission, directing the Commission staff, and such other 
duties as the Commission may assign. 
‘‘(e) NO FEDERAL EMPLOYEE STATUS.—No member, alternate, 
officer, or employee of a Commission (other than the Federal 
Cochairperson, the alternate Federal Cochairperson, staff of the 
Federal Cochairperson, and any Federal employee detailed to the 
Commission) shall be considered to be a Federal employee for 
any purpose. 
‘‘§ 15302. Decisions 
‘‘(a) REQUIREMENTS FOR APPROVAL.—Except as provided in sec-
tion 15304(c)(3), decisions by the Commission shall require the 
affirmative vote of the Federal Cochairperson and a majority of 
the State members (exclusive of members representing States delin-
quent under section 15304(c)(3)(C)). 
‘‘(b) CONSULTATION.—In matters coming before the Commission, 
the Federal Cochairperson shall, to the extent practicable, consult 
with the Federal departments and agencies having an interest 
in the subject matter. 
‘‘(c) QUORUMS.—A Commission shall determine what constitutes 
a quorum for Commission meetings; except that— 
‘‘(1) any quorum shall include the Federal Cochairperson 
or the alternate Federal Cochairperson; and 
‘‘(2) a State alternate member shall not be counted toward 
the establishment of a quorum. 
‘‘(d) PROJECTS AND GRANT PROPOSALS.—The approval of project 
and grant proposals shall be a responsibility of each Commission 
and shall be carried out in accordance with section 15503. 
‘‘§ 15303. Functions 
‘‘A Commission shall— 
‘‘(1) assess the needs and assets of its region based on 
available research, demonstration projects, investigations,
H. R. 6124—583 
assessments, and evaluations of the region prepared by Federal, 
State, and local agencies, universities, local development dis-
tricts, and other nonprofit groups; 
‘‘(2) develop, on a continuing basis, comprehensive and 
coordinated economic and infrastructure development strategies 
to establish priorities and approve grants for the economic 
development of its region, giving due consideration to other 
Federal, State, and local planning and development activities 
in the region; 
‘‘(3) not later than one year after the date of the enactment 
of this section, and after taking into account State plans devel-
oped under section 15502, establish priorities in an economic 
and infrastructure development plan for its region, including 
5-year regional outcome targets; 
‘‘(4)(A) enhance the capacity of, and provide support for, 
local development districts in its region; or 
‘‘(B) if no local development district exists in an area in 
a participating State in the region, foster the creation of a 
local development district; 
‘‘(5) encourage private investment in industrial, commer-
cial, and other economic development projects in its region; 
‘‘(6) cooperate with and assist State governments with the 
preparation of economic and infrastructure development plans 
and programs for participating States; 
‘‘(7) formulate and recommend to the Governors and legisla-
tures of States that participate in the Commission forms of 
interstate cooperation and, where appropriate, international 
cooperation; and 
‘‘(8) work with State and local agencies in developing appro-
priate model legislation to enhance local and regional economic 
development. 
‘‘§ 15304. Administrative powers and expenses 
‘‘(a) POWERS.—In carrying out its duties under this subtitle, 
a Commission may— 
‘‘(1) hold such hearings, sit and act at such times and 
places, take such testimony, receive such evidence, and print 
or otherwise reproduce and distribute a description of the pro-
ceedings and reports on actions by the Commission as the 
Commission considers appropriate; 
‘‘(2) authorize, through the Federal or State Cochairperson 
or any other member of the Commission designated by the 
Commission, the administration of oaths if the Commission 
determines that testimony should be taken or evidence received 
under oath; 
‘‘(3) request from any Federal, State, or local agency such 
information as may be available to or procurable by the agency 
that may be of use to the Commission in carrying out the 
duties of the Commission; 
‘‘(4) adopt, amend, and repeal bylaws and rules governing 
the conduct of business and the performance of duties by the 
Commission; 
‘‘(5) request the head of any Federal agency, State agency, 
or local government to detail to the Commission such personnel 
as the Commission requires to carry out its duties, each such 
detail to be without loss of seniority, pay, or other employee 
status;
H. R. 6124—584 
‘‘(6) provide for coverage of Commission employees in a 
suitable retirement and employee benefit system by making 
arrangements or entering into contracts with any participating 
State government or otherwise providing retirement and other 
employee coverage; 
‘‘(7) accept, use, and dispose of gifts or donations or services 
or real, personal, tangible, or intangible property; 
‘‘(8) enter into and perform such contracts, cooperative 
agreements, or other transactions as are necessary to carry 
out Commission duties, including any contracts or cooperative 
agreements with a department, agency, or instrumentality of 
the United States, a State (including a political subdivision, 
agency, or instrumentality of the State), or a person, firm, 
association, or corporation; and 
‘‘(9) maintain a government relations office in the District 
of Columbia and establish and maintain a central office at 
such location in its region as the Commission may select. 
‘‘(b) FEDERAL AGENCY COOPERATION.—A Federal agency shall— 
‘‘(1) cooperate with a Commission; and 
‘‘(2) provide, to the extent practicable, on request of the 
Federal Cochairperson, appropriate assistance in carrying out 
this subtitle, in accordance with applicable Federal laws 
(including regulations). 
‘‘(c) ADMINISTRATIVE EXPENSES.— 
‘‘(1) IN GENERAL.—Subject to paragraph (2), the administra-
tive expenses of a Commission shall be paid— 
‘‘(A) by the Federal Government, in an amount equal 
to 50 percent of the administrative expenses of the Commis-
sion; and 
‘‘(B) by the States participating in the Commission, 
in an amount equal to 50 percent of the administrative 
expenses. 
‘‘(2) EXPENSES
OF
THE
FEDERAL
COCHAIRPERSON.—All 
expenses of the Federal Cochairperson, including expenses of 
the alternate and staff of the Federal Cochairperson, shall 
be paid by the Federal Government. 
‘‘(3) STATE SHARE.— 
‘‘(A) IN GENERAL.—Subject to subparagraph (B), the 
share of administrative expenses of a Commission to be 
paid by each State of the Commission shall be determined 
by a unanimous vote of the State members of the Commis-
sion. 
‘‘(B) 
NO
FEDERAL
PARTICIPATION.—The 
Federal 
Cochairperson shall not participate or vote in any decision 
under subparagraph (A). 
‘‘(C) DELINQUENT STATES.—During any period in which 
a State is more than 1 year delinquent in payment of 
the State’s share of administrative expenses of the Commis-
sion under this subsection— 
‘‘(i) no assistance under this subtitle shall be pro-
vided to the State (including assistance to a political 
subdivision or a resident of the State) for any project 
not approved as of the date of the commencement 
of the delinquency; and 
‘‘(ii) no member of the Commission from the State 
shall participate or vote in any action by the Commis-
sion.
H. R. 6124—585 
‘‘(4) EFFECT ON ASSISTANCE.—A State’s share of administra-
tive expenses of a Commission under this subsection shall 
not be taken into consideration when determining the amount 
of assistance provided to the State under this subtitle. 
‘‘§ 15305. Meetings 
‘‘(a) INITIAL MEETING.—Each Commission shall hold an initial 
meeting not later than 180 days after the date of the enactment 
of this section. 
‘‘(b) ANNUAL MEETING.—Each Commission shall conduct at 
least 1 meeting each year with the Federal Cochairperson and 
at least a majority of the State members present. 
‘‘(c) ADDITIONAL MEETINGS.—Each Commission shall conduct 
additional meetings at such times as it determines and may conduct 
such meetings by electronic means. 
‘‘§ 15306. Personal financial interests 
‘‘(a) CONFLICTS OF INTEREST.— 
‘‘(1) NO ROLE ALLOWED.—Except as permitted by paragraph 
(2), an individual who is a State member or alternate, or 
an officer or employee of a Commission, shall not participate 
personally and substantially as a member, alternate, officer, 
or employee of the Commission, through decision, approval, 
disapproval, recommendation, request for a ruling, or other 
determination, contract, claim, controversy, or other matter 
in which, to the individual’s knowledge, any of the following 
has a financial interest: 
‘‘(A) The individual. 
‘‘(B) The individual’s spouse, minor child, or partner. 
‘‘(C) An organization (except a State or political subdivi-
sion of a State) in which the individual is serving as an 
officer, director, trustee, partner, or employee. 
‘‘(D) Any person or organization with whom the indi-
vidual is negotiating or has any arrangement concerning 
prospective employment. 
‘‘(2) EXCEPTION.—Paragraph (1) shall not apply if the indi-
vidual, in advance of the proceeding, application, request for 
a ruling or other determination, contract, claim controversy, 
or other particular matter presenting a potential conflict of 
interest— 
‘‘(A) advises the Commission of the nature and cir-
cumstances of the matter presenting the conflict of interest; 
‘‘(B) makes full disclosure of the financial interest; 
and 
‘‘(C) receives a written decision of the Commission 
that the interest is not so substantial as to be considered 
likely to affect the integrity of the services that the 
Commission may expect from the individual. 
‘‘(3) VIOLATION.—An individual violating this subsection 
shall be fined under title 18, imprisoned for not more than 
1 year, or both. 
‘‘(b) STATE MEMBER OR ALTERNATE.—A State member or alter-
nate member may not receive any salary, or any contribution to, 
or supplementation of, salary, for services on a Commission from 
a source other than the State of the member or alternate. 
‘‘(c) DETAILED EMPLOYEES.—
H. R. 6124—586 
‘‘(1) IN GENERAL.—No person detailed to serve a Commis-
sion shall receive any salary, or any contribution to, or 
supplementation of, salary, for services provided to the Commis-
sion from any source other than the State, local, or intergovern-
mental department or agency from which the person was 
detailed to the Commission. 
‘‘(2) VIOLATION.—Any person that violates this subsection 
shall be fined under title 18, imprisoned not more than 1 
year, or both. 
‘‘(d) FEDERAL COCHAIRMAN, ALTERNATE TO FEDERAL COCHAIR-
MAN, AND
FEDERAL
OFFICERS
AND
EMPLOYEES.—The Federal 
Cochairman, the alternate to the Federal Cochairman, and any 
Federal officer or employee detailed to duty with the Commission 
are not subject to this section but remain subject to sections 202 
through 209 of title 18. 
‘‘(e) RESCISSION.—A Commission may declare void any contract, 
loan, or grant of or by the Commission in relation to which the 
Commission determines that there has been a violation of any 
provision under subsection (a)(1), (b), or (c), or any of the provisions 
of sections 202 through 209 of title 18. 
‘‘§ 15307. Tribal participation 
‘‘Governments of Indian tribes in the region of the Southwest 
Border Regional Commission shall be allowed to participate in 
matters before that Commission in the same manner and to the 
same extent as State agencies and instrumentalities in the region. 
‘‘§ 15308. Annual report 
‘‘(a) IN GENERAL.—Not later than 90 days after the last day 
of each fiscal year, each Commission shall submit to the President 
and Congress a report on the activities carried out by the Commis-
sion under this subtitle in the fiscal year. 
‘‘(b) CONTENTS.—The report shall include— 
‘‘(1) a description of the criteria used by the Commission 
to designate counties under section 15702 and a list of the 
counties designated in each category; 
‘‘(2) an evaluation of the progress of the Commission in 
meeting the goals identified in the Commission’s economic and 
infrastructure development plan under section 15303 and State 
economic and infrastructure development plans under section 
15502; and 
‘‘(3) any policy recommendations approved by the Commis-
sion. 
‘‘CHAPTER 3—FINANCIAL ASSISTANCE 
‘‘Sec. 
‘‘15501. Economic and infrastructure development grants. 
‘‘15502. Comprehensive economic and infrastructure development plans. 
‘‘15503. Approval of applications for assistance. 
‘‘15504. Program development criteria. 
‘‘15505. Local development districts and organizations. 
‘‘15506. Supplements to Federal grant programs. 
‘‘§ 15501. Economic and infrastructure development grants 
‘‘(a) IN GENERAL.—A Commission may make grants to States 
and local governments, Indian tribes, and public and nonprofit 
organizations for projects, approved in accordance with section 
15503—
H. R. 6124—587 
‘‘(1) to develop the transportation infrastructure of its 
region; 
‘‘(2) to develop the basic public infrastructure of its region; 
‘‘(3) to develop the telecommunications infrastructure of 
its region; 
‘‘(4) to assist its region in obtaining job skills training, 
skills 
development 
and 
employment-related 
education, 
entrepreneurship, technology, and business development; 
‘‘(5) to provide assistance to severely economically dis-
tressed and underdeveloped areas of its region that lack finan-
cial resources for improving basic health care and other public 
services; 
‘‘(6) to promote resource conservation, tourism, recreation, 
and preservation of open space in a manner consistent with 
economic development goals; 
‘‘(7) to promote the development of renewable and alter-
native energy sources; and 
‘‘(8) to otherwise achieve the purposes of this subtitle. 
‘‘(b) ALLOCATION OF FUNDS.—A Commission shall allocate at 
least 40 percent of any grant amounts provided by the Commission 
in a fiscal year for projects described in paragraphs (1) through 
(3) of subsection (a). 
‘‘(c) SOURCES OF GRANTS.—Grant amounts may be provided 
entirely from appropriations to carry out this subtitle, in combina-
tion with amounts available under other Federal grant programs, 
or from any other source. 
‘‘(d) MAXIMUM COMMISSION CONTRIBUTIONS.— 
‘‘(1) IN GENERAL.—Subject to paragraphs (2) and (3), the 
Commission may contribute not more than 50 percent of a 
project or activity cost eligible for financial assistance under 
this section from amounts appropriated to carry out this sub-
title. 
‘‘(2) DISTRESSED
COUNTIES.—The maximum Commission 
contribution for a project or activity to be carried out in a 
county for which a distressed county designation is in effect 
under section 15702 may be increased to 80 percent. 
‘‘(3) SPECIAL RULE FOR REGIONAL PROJECTS.—A Commission 
may increase to 60 percent under paragraph (1) and 90 percent 
under paragraph (2) the maximum Commission contribution 
for a project or activity if— 
‘‘(A) the project or activity involves 3 or more counties 
or more than one State; and 
‘‘(B) the Commission determines in accordance with 
section 15302(a) that the project or activity will bring 
significant interstate or multicounty benefits to a region. 
‘‘(e) MAINTENANCE
OF EFFORT.—Funds may be provided by 
a Commission for a program or project in a State under this 
section only if the Commission determines that the level of Federal 
or State financial assistance provided under a law other than this 
subtitle, for the same type of program or project in the same 
area of the State within region, will not be reduced as a result 
of funds made available by this subtitle. 
‘‘(f) NO RELOCATION ASSISTANCE.—Financial assistance author-
ized by this section may not be used to assist a person or entity 
in relocating from one area to another.
H. R. 6124—588 
‘‘§ 15502. 
Comprehensive 
economic 
and 
infrastructure 
development plans 
‘‘(a) STATE PLANS.—In accordance with policies established by 
a Commission, each State member of the Commission shall submit 
a comprehensive economic and infrastructure development plan 
for the area of the region represented by the State member. 
‘‘(b) CONTENT OF PLAN.—A State economic and infrastructure 
development plan shall reflect the goals, objectives, and priorities 
identified in any applicable economic and infrastructure develop-
ment plan developed by a Commission under section 15303. 
‘‘(c) CONSULTATION WITH INTERESTED LOCAL PARTIES.—In car-
rying out the development planning process (including the selection 
of programs and projects for assistance), a State shall— 
‘‘(1) consult with local development districts, local units 
of government, and local colleges and universities; and 
‘‘(2) take into consideration the goals, objectives, priorities, 
and recommendations of the entities described in paragraph 
(1). 
‘‘(d) PUBLIC PARTICIPATION.— 
‘‘(1) IN GENERAL.—A Commission and applicable State and 
local development districts shall encourage and assist, to the 
maximum extent practicable, public participation in the 
development, revision, and implementation of all plans and 
programs under this subtitle. 
‘‘(2) GUIDELINES.—A Commission shall develop guidelines 
for providing public participation, including public hearings. 
‘‘§ 15503. Approval of applications for assistance 
‘‘(a) EVALUATION
BY STATE MEMBER.—An application to a 
Commission for a grant or any other assistance for a project under 
this subtitle shall be made through, and evaluated for approval 
by, the State member of the Commission representing the applicant. 
‘‘(b) CERTIFICATION.—An application to a Commission for a 
grant or other assistance for a project under this subtitle shall 
be eligible for assistance only on certification by the State member 
of the Commission representing the applicant that the application 
for the project— 
‘‘(1) describes ways in which the project complies with 
any applicable State economic and infrastructure development 
plan; 
‘‘(2) meets applicable criteria under section 15504; 
‘‘(3) adequately ensures that the project will be properly 
administered, operated, and maintained; and 
‘‘(4) otherwise meets the requirements for assistance under 
this subtitle. 
‘‘(c) VOTES FOR DECISIONS.—On certification by a State member 
of a Commission of an application for a grant or other assistance 
for a specific project under this section, an affirmative vote of 
the Commission under section 15302 shall be required for approval 
of the application. 
‘‘§ 15504. Program development criteria 
‘‘In considering programs and projects to be provided assistance 
by a Commission under this subtitle, and in establishing a priority 
ranking of the requests for assistance provided to the Commission, 
the Commission shall follow procedures that ensure, to the max-
imum extent practicable, consideration of—
H. R. 6124—589 
‘‘(1) the relationship of the project or class of projects to 
overall regional development; 
‘‘(2) the per capita income and poverty and unemployment 
and outmigration rates in an area; 
‘‘(3) the financial resources available to the applicants for 
assistance seeking to carry out the project, with emphasis on 
ensuring that projects are adequately financed to maximize 
the probability of successful economic development; 
‘‘(4) the importance of the project or class of projects in 
relation to the other projects or classes of projects that may 
be in competition for the same funds; 
‘‘(5) the prospects that the project for which assistance 
is sought will improve, on a continuing rather than a temporary 
basis, the opportunities for employment, the average level of 
income, or the economic development of the area to be served 
by the project; and 
‘‘(6) the extent to which the project design provides for 
detailed outcome measurements by which grant expenditures 
and the results of the expenditures may be evaluated. 
‘‘§ 15505. Local development districts and organizations 
‘‘(a) GRANTS TO LOCAL DEVELOPMENT DISTRICTS.—Subject to 
the requirements of this section, a Commission may make grants 
to a local development district to assist in the payment of develop-
ment planning and administrative expenses. 
‘‘(b) CONDITIONS FOR GRANTS.— 
‘‘(1) MAXIMUM AMOUNT.—The amount of a grant awarded 
under this section may not exceed 80 percent of the administra-
tive and planning expenses of the local development district 
receiving the grant. 
‘‘(2) MAXIMUM PERIOD FOR STATE AGENCIES.—In the case 
of a State agency certified as a local development district, 
a grant may not be awarded to the agency under this section 
for more than 3 fiscal years. 
‘‘(3) LOCAL SHARE.—The contributions of a local develop-
ment district for administrative expenses may be in cash or 
in kind, fairly evaluated, including space, equipment, and serv-
ices. 
‘‘(c) DUTIES
OF
LOCAL
DEVELOPMENT
DISTRICTS.—A local 
development district shall— 
‘‘(1) operate as a lead organization serving multicounty 
areas in the region at the local level; 
‘‘(2) assist the Commission in carrying out outreach activi-
ties for local governments, community development groups, the 
business community, and the public; 
‘‘(3) serve as a liaison between State and local governments, 
nonprofit organizations (including community-based groups and 
educational institutions), the business community, and citizens; 
and 
‘‘(4) assist the individuals and entities described in para-
graph (3) in identifying, assessing, and facilitating projects 
and programs to promote the economic development of the 
region. 
‘‘§ 15506. Supplements to Federal grant programs 
‘‘(a) FINDING.—Congress finds that certain States and local 
communities of the region, including local development districts,
H. R. 6124—590 
may be unable to take maximum advantage of Federal grant pro-
grams for which the States and communities are eligible because— 
‘‘(1) they lack the economic resources to provide the 
required matching share; or 
‘‘(2) there are insufficient funds available under the 
applicable Federal law with respect to a project to be carried 
out in the region. 
‘‘(b) FEDERAL GRANT PROGRAM FUNDING.—A Commission, with 
the approval of the Federal Cochairperson, may use amounts made 
available to carry out this subtitle— 
‘‘(1) for any part of the basic Federal contribution to projects 
or activities under the Federal grant programs authorized by 
Federal laws; and 
‘‘(2) to increase the Federal contribution to projects and 
activities under the programs above the fixed maximum part 
of the cost of the projects or activities otherwise authorized 
by the applicable law. 
‘‘(c) CERTIFICATION REQUIRED.—For a program, project, or 
activity for which any part of the basic Federal contribution to 
the project or activity under a Federal grant program is proposed 
to be made under subsection (b), the Federal contribution shall 
not be made until the responsible Federal official administering 
the Federal law authorizing the Federal contribution certifies that 
the program, project, or activity meets the applicable requirements 
of the Federal law and could be approved for Federal contribution 
under that law if amounts were available under the law for the 
program, project, or activity. 
‘‘(d) LIMITATIONS IN OTHER LAWS INAPPLICABLE.—Amounts pro-
vided pursuant to this subtitle are available without regard to 
any limitations on areas eligible for assistance or authorizations 
for appropriation in any other law. 
‘‘(e) FEDERAL SHARE.—The Federal share of the cost of a project 
or activity receiving assistance under this section shall not exceed 
80 percent. 
‘‘(f) MAXIMUM COMMISSION CONTRIBUTION.—Section 15501(d), 
relating to limitations on Commission contributions, shall apply 
to a program, project, or activity receiving assistance under this 
section. 
‘‘CHAPTER 4—ADMINISTRATIVE PROVISIONS 
‘‘SUBCHAPTER I—GENERAL PROVISIONS 
‘‘Sec. 15701. Consent of States. 
‘‘Sec. 15702. Distressed counties and areas. 
‘‘Sec. 15703. Counties eligible for assistance in more than one region. 
‘‘Sec. 15704. Inspector General; records. 
‘‘Sec. 15705. Biannual meetings of representatives of all Commissions. 
‘‘SUBCHAPTER II—DESIGNATION OF REGIONS 
‘‘Sec. 15731. Southeast Crescent Regional Commission. 
‘‘Sec. 15732. Southwest Border Regional Commission. 
‘‘Sec. 15733. Northern Border Regional Commission. 
‘‘SUBCHAPTER III—AUTHORIZATION OF APPROPRIATIONS 
‘‘Sec. 15751. Authorization of appropriations.
H. R. 6124—591 
‘‘SUBCHAPTER I—GENERAL PROVISIONS 
‘‘§ 15701. Consent of States 
‘‘This subtitle does not require a State to engage in or accept 
a program under this subtitle without its consent. 
‘‘§ 15702. Distressed counties and areas 
‘‘(a) DESIGNATIONS.—Not later than 90 days after the date 
of the enactment of this section, and annually thereafter, each 
Commission shall make the following designations: 
‘‘(1) DISTRESSED
COUNTIES.—The Commission shall des-
ignate as distressed counties those counties in its region that 
are the most severely and persistently economically distressed 
and underdeveloped and have high rates of poverty, unemploy-
ment, or outmigration. 
‘‘(2) TRANSITIONAL COUNTIES.—The Commission shall des-
ignate as transitional counties those counties in its region that 
are economically distressed and underdeveloped or have 
recently suffered high rates of poverty, unemployment, or out-
migration. 
‘‘(3) ATTAINMENT COUNTIES.—The Commission shall des-
ignate as attainment counties, those counties in its region 
that are not designated as distressed or transitional counties 
under this subsection. 
‘‘(4) ISOLATED AREAS OF DISTRESS.—The Commission shall 
designate as isolated areas of distress, areas located in counties 
designated as attainment counties under paragraph (3) that 
have high rates of poverty, unemployment, or outmigration. 
‘‘(b) ALLOCATION.—A Commission shall allocate at least 50 per-
cent of the appropriations made available to the Commission to 
carry out this subtitle for programs and projects designed to serve 
the needs of distressed counties and isolated areas of distress in 
the region. 
‘‘(c) ATTAINMENT COUNTIES.— 
‘‘(1) IN GENERAL.—Except as provided in paragraph (2), 
funds may not be provided under this subtitle for a project 
located in a county designated as an attainment county under 
subsection (a). 
‘‘(2) EXCEPTIONS.— 
‘‘(A) ADMINISTRATIVE
EXPENSES
OF
LOCAL
DEVELOP-
MENT DISTRICTS.—The funding prohibition under paragraph 
(1) shall not apply to grants to fund the administrative 
expenses of local development districts under section 15505. 
‘‘(B) MULTICOUNTY AND OTHER PROJECTS.—A Commis-
sion may waive the application of the funding prohibition 
under paragraph (1) with respect to— 
‘‘(i) a multicounty project that includes participa-
tion by an attainment county; and 
‘‘(ii) any other type of project, if a Commission 
determines that the project could bring significant 
benefits to areas of the region outside an attainment 
county. 
‘‘(3) ISOLATED AREAS OF DISTRESS.—For a designation of 
an isolated area of distress to be effective, the designation 
shall be supported— 
‘‘(A) by the most recent Federal data available; or
H. R. 6124—592 
‘‘(B) if no recent Federal data are available, by the 
most recent data available through the government of the 
State in which the isolated area of distress is located. 
‘‘§ 15703. Counties eligible for assistance in more than one 
region 
‘‘(a) LIMITATION.—A political subdivision of a State may not 
receive assistance under this subtitle in a fiscal year from more 
than one Commission. 
‘‘(b) SELECTION
OF
COMMISSION.—A political subdivision 
included in the region of more than one Commission shall select 
the Commission with which it will participate by notifying, in 
writing, the Federal Cochairperson and the appropriate State 
member of that Commission. 
‘‘(c) CHANGES IN SELECTIONS.—The selection of a Commission 
by a political subdivision shall apply in the fiscal year in which 
the selection is made, and shall apply in each subsequent fiscal 
year unless the political subdivision, at least 90 days before the 
first day of the fiscal year, notifies the Cochairpersons of another 
Commission in writing that the political subdivision will participate 
in that Commission and also transmits a copy of such notification 
to the Cochairpersons of the Commission in which the political 
subdivision is currently participating. 
‘‘(d) INCLUSION OF APPALACHIAN REGIONAL COMMISSION.—In 
this section, the term ‘Commission’ includes the Appalachian 
Regional Commission established under chapter 143. 
‘‘§ 15704. Inspector General; records 
‘‘(a) APPOINTMENT OF INSPECTOR GENERAL.—There shall be an 
Inspector General for the Commissions appointed in accordance 
with section 3(a) of the Inspector General Act of 1978 (5 U.S.C. 
App.). All of the Commissions shall be subject to a single Inspector 
General. 
‘‘(b) RECORDS OF A COMMISSION.— 
‘‘(1) IN GENERAL.—A Commission shall maintain accurate 
and complete records of all its transactions and activities. 
‘‘(2) AVAILABILITY.—All records of a Commission shall be 
available for audit and examination by the Inspector General 
(including authorized representatives of the Inspector General). 
‘‘(c) RECORDS
OF RECIPIENTS
OF COMMISSION ASSISTANCE.— 
‘‘(1) IN GENERAL.—A recipient of funds from a Commission 
under this subtitle shall maintain accurate and complete 
records of transactions and activities financed with the funds 
and report to the Commission on the transactions and activities. 
‘‘(2) AVAILABILITY.—All records required under paragraph 
(1) shall be available for audit by the Commission and the 
Inspector General (including authorized representatives of the 
Commission and the Inspector General). 
‘‘(d) ANNUAL AUDIT.—The Inspector General shall audit the 
activities, transactions, and records of each Commission on an 
annual basis. 
‘‘§ 15705. Biannual meetings of representatives of all Commis-
sions 
‘‘(a) IN GENERAL.—Representatives of each Commission, the 
Appalachian Regional Commission, and the Denali Commission 
shall meet biannually to discuss issues confronting regions suffering
H. R. 6124—593 
from chronic and contiguous distress and successful strategies for 
promoting regional development. 
‘‘(b) CHAIR
OF MEETINGS.—The chair of each meeting shall 
rotate among the Commissions, with the Appalachian Regional 
Commission to host the first meeting. 
‘‘SUBCHAPTER II—DESIGNATION OF REGIONS 
‘‘§ 15731. Southeast Crescent Regional Commission 
‘‘The region of the Southeast Crescent Regional Commission 
shall consist of all counties of the States of Virginia, North Carolina, 
South Carolina, Georgia, Alabama, Mississippi, and Florida not 
already served by the Appalachian Regional Commission or the 
Delta Regional Authority. 
‘‘§ 15732. Southwest Border Regional Commission 
‘‘The region of the Southwest Border Regional Commission 
shall consist of the following political subdivisions: 
‘‘(1) ARIZONA.—The counties of Cochise, Gila, Graham, 
Greenlee, La Paz, Maricopa, Pima, Pinal, Santa Cruz, and 
Yuma in the State of Arizona. 
‘‘(2) CALIFORNIA.—The counties of Imperial, Los Angeles, 
Orange, Riverside, San Bernardino, San Diego, and Ventura 
in the State of California. 
‘‘(3) NEW MEXICO.—The counties of Catron, Chaves, Dona 
Ana, Eddy, Grant, Hidalgo, Lincoln, Luna, Otero, Sierra, and 
Socorro in the State of New Mexico. 
‘‘(4) TEXAS.—The counties of Atascosa, Bandera, Bee, 
Bexar, Brewster, Brooks, Cameron, Coke, Concho, Crane, 
Crockett, Culberson, Dimmit, Duval, Ector, Edwards, El Paso, 
Frio, Gillespie, Glasscock, Hidalgo, Hudspeth, Irion, Jeff Davis, 
Jim Hogg, Jim Wells, Karnes, Kendall, Kenedy, Kerr, Kimble, 
Kinney, Kleberg, La Salle, Live Oak, Loving, Mason, Maverick, 
McMullen, Medina, Menard, Midland, Nueces, Pecos, Presidio, 
Reagan, Real, Reeves, San Patricio, Shleicher, Sutton, Starr, 
Sterling, Terrell, Tom Green Upton, Uvalde, Val Verde, Ward, 
Webb, Willacy, Wilson, Winkler, Zapata, and Zavala in the 
State of Texas. 
‘‘§ 15733. Northern Border Regional Commission 
‘‘The region of the Northern Border Regional Commission shall 
include the following counties: 
‘‘(1) MAINE.—The counties of Androscoggin, Aroostook, 
Franklin, Hancock, Kennebec, Knox, Oxford, Penobscot, 
Piscataquis, Somerset, Waldo, and Washington in the State 
of Maine. 
‘‘(2) NEW
HAMPSHIRE.—The counties of Carroll, Coos, 
Grafton, and Sullivan in the State of New Hampshire. 
‘‘(3) NEW YORK.—The counties of Cayuga, Clinton, Essex, 
Franklin, Fulton, Hamilton, Herkimer, Jefferson, Lewis, Madi-
son, Oneida, Oswego, Seneca, and St. Lawrence in the State 
of New York. 
‘‘(4) VERMONT.—The counties of Caledonia, Essex, Franklin, 
Grand Isle, Lamoille, and Orleans in the State of Vermont.
H. R. 6124—594 
‘‘SUBCHAPTER III—AUTHORIZATION OF APPROPRIATIONS 
‘‘§ 15751. Authorization of appropriations 
‘‘(a) IN GENERAL.—There is authorized to be appropriated to 
each Commission to carry out this subtitle $30,000,000 for each 
of fiscal years 2008 through 2012. 
‘‘(b) ADMINISTRATIVE EXPENSES.—Not more than 10 percent 
of the funds made available to a Commission in a fiscal year 
under this section may be used for administrative expenses.’’. 
(b) CLERICAL AMENDMENT TO TABLE OF SUBTITLES.—The table 
of subtitles for chapter 40, United States Code, is amended by 
striking the item relating to subtitle V and inserting the following: 
‘‘V. REGIONAL ECONOMIC AND INFRASTRUCTURE DEVELOPMENT ....15101
‘‘VI. MISCELLANEOUS ........................................................................................17101’’. 
(c) CONFORMING AMENDMENTS TO INSPECTOR GENERAL ACT.— 
Section 11 of the Inspector General Act of 1978 (5 U.S.C. App.) 
is amended— 
(1) in paragraph (1), by striking ‘‘or the President of the 
Export-Import Bank;’’ and inserting ‘‘the President of the 
Export-Import Bank; or the Federal Cochairpersons of the 
Commissions established under section 15301 of title 40, United 
States Code;’’; and 
(2) in paragraph (2), by striking ‘‘or the Export-Import 
Bank,’’ and inserting ‘‘the Export-Import Bank, or the Commis-
sions established under section 15301 of title 40, United States 
Code,’’. 
(d) EFFECTIVE DATE.—This section, and the amendments made 
by this section, shall take effect on the first day of the first fiscal 
year beginning after the date of the enactment of this Act. 
SEC. 14218. COORDINATOR FOR CHRONICALLY UNDERSERVED RURAL 
AREAS. 
(a) ESTABLISHMENT.—The Secretary of Agriculture shall estab-
lish a Coordinator for Chronically Underserved Rural Areas (in 
this section referred to as the ‘‘Coordinator’’), to be located in 
the Rural Development Mission Area. 
(b) MISSION.—The mission of the Coordinator shall be to direct 
Department of Agriculture resources to high need, high poverty 
rural areas. 
(c) DUTIES.—The Coordinator shall consult with other offices 
in directing technical assistance, strategic regional planning, at 
the State and local level, for developing rural economic development 
that leverages the resources of State and local governments and 
non-profit and community development organizations. 
(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated to the Secretary such sums as necessary to 
carry out this section for fiscal years 2008 through 2012. 
SEC. 14219. ELIMINATION OF STATUTE OF LIMITATIONS APPLICABLE 
TO COLLECTION OF DEBT BY ADMINISTRATIVE OFFSET. 
(a) ELIMINATION.—Section 3716(e) of title 31, United States 
Code, is amended to read as follows: 
‘‘(e)(1) Notwithstanding any other provision of law, regulation, 
or administrative limitation, no limitation on the period within 
which an offset may be initiated or taken pursuant to this section 
shall be effective.
H. R. 6124—595 
‘‘(2) This section does not apply when a statute explicitly pro-
hibits using administrative offset or setoff to collect the claim or 
type of claim involved.’’. 
(b) APPLICATION OF AMENDMENT.—The amendment made by 
subsection (a) shall apply to any debt outstanding on or after 
the date of the enactment of this Act. 
SEC. 14220. AVAILABILITY OF EXCESS AND SURPLUS COMPUTERS IN 
RURAL AREAS. 
In addition to any other authority, the Secretary of Agriculture 
may make available to an organization excess or surplus computers 
or other technical equipment of the Department of Agriculture 
for the purposes of distribution to a city, town, or local government 
entity in a rural area (as defined in section 343(a)(13)(A) of the 
Consolidated Farm and Rural Development Act). 
SEC. 14221. REPEAL OF SECTION 3068 OF THE WATER RESOURCES 
DEVELOPMENT ACT OF 2007. 
Effective upon the date of enactment of this Act, section 3068 
of the Water Resources Development Act of 2007 (Public Law 110- 
114; 121 Stat. 1123), and the item relating to section 3068 in 
the table of contents of that Act, are repealed. 
SEC. 14222. DOMESTIC FOOD ASSISTANCE PROGRAMS. 
(a) DEFINITION OF SECTION 32.—In this section, the term ‘‘sec-
tion 32’’ means section 32 of the Act of August 24, 1935 (7 U.S.C. 
612c). 
(b) TRANSFER TO FOOD AND NUTRITION SERVICE.— 
(1) IN GENERAL.—Amounts made available for a fiscal year 
to carry out section 32 in excess of the maximum amount 
calculated under paragraph (2) shall be transferred to the Sec-
retary, acting through the Administrator of the Food and Nutri-
tion Service, to be used to carry out the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1751 et seq.). 
(2) MAXIMUM AMOUNT.—The maximum amount calculated 
under this paragraph for a fiscal year is the sum of— 
(A)(i) in the case of fiscal year 2009, $1,173,000,000; 
(ii) in the case of fiscal year 2010, $1,199,000,000; 
(iii) in the case of fiscal year 2011, $1,215,000,000; 
(iv) in the case of fiscal year 2012, $1,231,000,000; 
(v) in the case of fiscal year 2013, $1,248,000,000; 
(vi) in the case of fiscal year 2014, $1,266,000,000; 
(vii) in the case of fiscal year 2015, $1,284,000,000; 
(viii) in the case of fiscal year 2016, $1,303,000,000; 
(ix) in the case of fiscal year 2017, $1,322,000,000; 
and 
(x) for fiscal year 2018 and each fiscal year thereafter, 
the amount made available for the preceding fiscal year, 
as adjusted to reflect changes for the 12-month period 
ending on the preceding November 30 in the Consumer 
Price Index for All Urban Consumers published by the 
Bureau of Labor Statistics of the Department of Labor; 
and 
(B) any transfers for the fiscal year from section 32 to 
the Department of Commerce under the Fish and Wildlife 
Act of 1956 (16 U.S.C. 742a et seq.). 
(c) FRESH FRUIT AND VEGETABLE PROGRAM.—Of amounts made 
available to carry out section 32 under subsection (b)(2)(A), the
H. R. 6124—596 
Secretary shall transfer for use to carry out the fresh fruit and 
vegetable program under section 19 of the Richard B. Russell 
National School Lunch Act the amounts specified in subsection 
(i) of that section. 
(d) WHOLE GRAIN PRODUCTS.—Of amounts made available to 
carry out section 32 under subsection (b)(2)(A), the Secretary shall 
use to carry out section 4305 $4,000,000 for fiscal year 2009. 
(e) MAINTENANCE OF FUNDING.—The funding provided under 
subsections (c) and (d) shall supplement (and not supplant) other 
Federal funding (including section 32 funding) for programs carried 
out under— 
(1) the Richard B. Russell National School Lunch Act (42 
U.S.C. 1751 et seq.), except for section 19 of that Act; 
(2) the Emergency Food Assistance Act of 1983 (7 U.S.C. 
7501 et seq.); and 
(3) section 27 of the Food Stamp Act of 1977 (7 U.S.C. 
2036). 
SEC. 14223. TECHNICAL CORRECTION. 
Section 923(1)(B) of the Federal Agriculture Improvement and 
Reform Act of 1996 (7 U.S.C. 2206a(1)(B)) is amended by striking 
‘‘as defined in section 316(b) of the Higher Education Act of 1965 
(20 U.S.C. 1059c(b))’’ and inserting ‘‘as defined in section 502(a)(5) 
of the Higher Education Act of 1965 (20 U.S.C. 1101a(a)(5))’’. 
TITLE XV—TRADE AND TAX 
PROVISIONS 
SEC. 15001. SHORT TITLE; ETC. 
(a) SHORT TITLE.—This title may be cited as the ‘‘Heartland, 
Habitat, Harvest, and Horticulture Act of 2008’’. 
(b) AMENDMENTS TO 1986 CODE.—Except as otherwise expressly 
provided, whenever in this title an amendment or repeal is 
expressed in terms of an amendment to, or repeal of, a section 
or other provision, the reference shall be considered to be made 
to a section or other provision of the Internal Revenue Code of 
1986. 
Subtitle A—Supplemental Agricultural Dis-
aster Assistance From the Agricultural 
Disaster Relief Trust Fund 
SEC. 15101. SUPPLEMENTAL AGRICULTURAL DISASTER ASSISTANCE. 
(a) IN GENERAL.—The Trade Act of 1974 (19 U.S.C. 2101 et 
seq.) is amended by adding at the end the following: 
‘‘TITLE IX—SUPPLEMENTAL 
AGRICULTURAL DISASTER ASSISTANCE 
‘‘SEC. 901. SUPPLEMENTAL AGRICULTURAL DISASTER ASSISTANCE. 
‘‘(a) DEFINITIONS.—In this section:
H. R. 6124—597 
‘‘(1) ACTUAL PRODUCTION HISTORY YIELD.—The term ‘actual 
production history yield’ means the weighted average of the 
actual production history for each insurable commodity or non-
insurable commodity, as calculated under the Federal Crop 
Insurance Act (7 U.S.C. 1501 et seq.) or the noninsured crop 
disaster assistance program, respectively. 
‘‘(2) ADJUSTED ACTUAL PRODUCTION HISTORY YIELD.—The 
term ‘adjusted actual production history yield’ means— 
‘‘(A) in the case of an eligible producer on a farm 
that has at least 4 years of actual production history yields 
for an insurable commodity that are established other than 
pursuant to section 508(g)(4)(B) of the Federal Crop Insur-
ance Act (7 U.S.C. 1508(g)(4)(B)), the actual production 
history for the eligible producer without regard to any 
yields established under that section; 
‘‘(B) in the case of an eligible producer on a farm 
that has less than 4 years of actual production history 
yields for an insurable commodity, of which 1 or more 
were established pursuant to section 508(g)(4)(B) of that 
Act, the actual production history for the eligible producer 
as calculated without including the lowest of the yields 
established pursuant to section 508(g)(4)(B) of that Act; 
and 
‘‘(C) in all other cases, the actual production history 
of the eligible producer on a farm. 
‘‘(3) ADJUSTED NONINSURED CROP DISASTER ASSISTANCE PRO-
GRAM
YIELD.—The term ‘adjusted noninsured crop disaster 
assistance program yield’ means— 
‘‘(A) in the case of an eligible producer on a farm 
that has at least 4 years of production history under the 
noninsured crop disaster assistance program that are not 
replacement yields, the noninsured crop disaster assistance 
program yield without regard to any replacement yields; 
‘‘(B) in the case of an eligible producer on a farm 
that less than 4 years of production history under the 
noninsured crop disaster assistance program that are not 
replacement yields, the noninsured crop disaster assistance 
program yield as calculated without including the lowest 
of the replacement yields; and 
‘‘(C) in all other cases, the production history of the 
eligible producer on the farm under the noninsured crop 
disaster assistance program. 
‘‘(4) COUNTER-CYCLICAL
PROGRAM
PAYMENT
YIELD.—The 
term ‘counter-cyclical program payment yield’ means the 
weighted average payment yield established under section 1102 
of the Farm Security and Rural Investment Act of 2002 (7 
U.S.C. 7912), section 1102 of the Food, Conservation, and 
Energy Act of 2008, or a successor section. 
‘‘(5) DISASTER COUNTY.— 
‘‘(A) IN GENERAL.—The term ‘disaster county’ means 
a county included in the geographic area covered by a 
qualifying natural disaster declaration. 
‘‘(B) INCLUSION.—The term ‘disaster county’ includes— 
‘‘(i) a county contiguous to a county described in 
subparagraph (A); and 
‘‘(ii) any farm in which, during a calendar year, 
the total loss of production of the farm relating to
H. R. 6124—598 
weather is greater than 50 percent of the normal 
production of the farm, as determined by the Secretary. 
‘‘(6) ELIGIBLE PRODUCER ON A FARM.— 
‘‘(A) IN GENERAL.—The term ‘eligible producer on a 
farm’ means an individual or entity described in subpara-
graph (B) that, as determined by the Secretary, assumes 
the production and market risks associated with the agri-
cultural production of crops or livestock. 
‘‘(B) DESCRIPTION.—An individual or entity referred 
to in subparagraph (A) is— 
‘‘(i) a citizen of the United States; 
‘‘(ii) a resident alien; 
‘‘(iii) a partnership of citizens of the United States; 
or 
‘‘(iv) a corporation, limited liability corporation, or 
other farm organizational structure organized under 
State law. 
‘‘(7) FARM.— 
‘‘(A) IN GENERAL.—The term ‘farm’ means, in relation 
to an eligible producer on a farm, the sum of all crop 
acreage in all counties that is planted or intended to be 
planted for harvest by the eligible producer. 
‘‘(B) AQUACULTURE.—In the case of aquaculture, the 
term ‘farm’ means, in relation to an eligible producer on 
a farm, all fish being produced in all counties that are 
intended to be harvested for sale by the eligible producer. 
‘‘(C) HONEY.—In the case of honey, the term ‘farm’ 
means, in relation to an eligible producer on a farm, all 
bees and beehives in all counties that are intended to 
be harvested for a honey crop by the eligible producer. 
‘‘(8) FARM-RAISED FISH.—The term ‘farm-raised fish’ means 
any aquatic species that is propagated and reared in a con-
trolled environment. 
‘‘(9) INSURABLE
COMMODITY.—The term ‘insurable com-
modity’ means an agricultural commodity (excluding livestock) 
for which the producer on a farm is eligible to obtain a policy 
or plan of insurance under the Federal Crop Insurance Act 
(7 U.S.C. 1501 et seq.). 
‘‘(10) LIVESTOCK.—The term ‘livestock’ includes— 
‘‘(A) cattle (including dairy cattle); 
‘‘(B) bison; 
‘‘(C) poultry; 
‘‘(D) sheep; 
‘‘(E) swine; 
‘‘(F) horses; and 
‘‘(G) other livestock, as determined by the Secretary. 
‘‘(11) NONINSURABLE COMMODITY.—The term ‘noninsurable 
commodity’ means a crop for which the eligible producers on 
a farm are eligible to obtain assistance under the noninsured 
crop assistance program. 
‘‘(12) NONINSURED CROP ASSISTANCE PROGRAM.—The term 
‘noninsured crop assistance program’ means the program car-
ried out under section 196 of the Federal Agriculture Improve-
ment and Reform Act of 1996 (7 U.S.C. 7333). 
‘‘(13) QUALIFYING NATURAL DISASTER DECLARATION.—The 
term ‘qualifying natural disaster declaration’ means a natural 
disaster declared by the Secretary for production losses under
H. R. 6124—599 
section 321(a) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1961(a)). 
‘‘(14) SECRETARY.—The term ‘Secretary’ means the Sec-
retary of Agriculture. 
‘‘(15) SOCIALLY DISADVANTAGED FARMER OR RANCHER.—The 
term ‘socially disadvantaged farmer or rancher’ has the 
meaning given the term in section 2501(e) of the Food, Agri-
culture, Conservation, and Trade Act of 1990 (7 U.S.C. 2279(e)). 
‘‘(16) STATE.—The term ‘State’ means— 
‘‘(A) a State; 
‘‘(B) the District of Columbia; 
‘‘(C) the Commonwealth of Puerto Rico; and 
‘‘(D) any other territory or possession of the United 
States. 
‘‘(17) TRUST FUND.—The term ‘Trust Fund’ means the Agri-
cultural Disaster Relief Trust Fund established under section 
902. 
‘‘(18) UNITED STATES.—The term ‘United States’ when used 
in a geographical sense, means all of the States. 
‘‘(b) SUPPLEMENTAL REVENUE ASSISTANCE PAYMENTS.— 
‘‘(1) IN GENERAL.—The Secretary shall use such sums as 
are necessary from the Trust Fund to make crop disaster assist-
ance payments to eligible producers on farms in disaster coun-
ties that have incurred crop production losses or crop quality 
losses, or both, during the crop year. 
‘‘(2) AMOUNT.— 
‘‘(A) IN GENERAL.—Subject to subparagraph (B), the 
Secretary shall provide crop disaster assistance payments 
under this section to an eligible producer on a farm in 
an amount equal to 60 percent of the difference between— 
‘‘(i) the disaster assistance program guarantee, as 
described in paragraph (3); and 
‘‘(ii) the total farm revenue for a farm, as described 
in paragraph (4). 
‘‘(B) LIMITATION.—The disaster assistance program 
guarantee for a crop used to calculate the payments for 
a farm under subparagraph (A)(i) may not be greater than 
90 percent of the sum of the expected revenue, as described 
in paragraph (5) for each of the crops on a farm, as deter-
mined by the Secretary. 
‘‘(3) SUPPLEMENTAL REVENUE ASSISTANCE PROGRAM GUAR-
ANTEE.— 
‘‘(A) IN
GENERAL.—Except as otherwise provided in 
this paragraph, the supplemental assistance program guar-
antee shall be the sum obtained by adding— 
‘‘(i) for each insurable commodity on the farm, 
115 percent of the product obtained by multiplying— 
‘‘(I) a payment rate for the commodity that 
is equal to the price election for the commodity 
elected by the eligible producer; 
‘‘(II) the payment acres for the commodity that 
is equal to the number of acres planted, or pre-
vented from being planted, to the commodity; 
‘‘(III) the payment yield for the commodity 
that is equal to the percentage of the crop insur-
ance yield elected by the producer of the higher 
of—
H. R. 6124—600 
‘‘(aa) the adjusted actual production his-
tory yield; or 
‘‘(bb) the counter-cyclical program pay-
ment yield for each crop; and 
‘‘(ii) for each noninsurable commodity on a farm, 
120 percent of the product obtained by multiplying— 
‘‘(I) a payment rate for the commodity that 
is equal to 100 percent of the noninsured crop 
assistance program established price for the com-
modity; 
‘‘(II) the payment acres for the commodity that 
is equal to the number of acres planted, or pre-
vented from being planted, to the commodity; and 
‘‘(III) the payment yield for the commodity 
that is equal to the higher of— 
‘‘(aa) the adjusted noninsured crop assist-
ance program yield guarantee; or 
‘‘(bb) the counter-cyclical program pay-
ment yield for each crop. 
‘‘(B) ADJUSTMENT
INSURANCE
GUARANTEE.—Notwith-
standing subparagraph (A), in the case of an insurable 
commodity for which a plan of insurance provides for an 
adjustment in the guarantee, such as in the case of pre-
vented planting, the adjusted insurance guarantee shall 
be the basis for determining the disaster assistance pro-
gram guarantee for the insurable commodity. 
‘‘(C) ADJUSTED
ASSISTANCE
LEVEL.—Notwithstanding 
subparagraph (A), in the case of a noninsurable commodity 
for which the noninsured crop assistance program provides 
for an adjustment in the level of assistance, such as in 
the case of unharvested crops, the adjusted assistance level 
shall be the basis for determining the disaster assistance 
program guarantee for the noninsurable commodity. 
‘‘(D) EQUITABLE TREATMENT FOR NON-YIELD BASED POLI-
CIES.—The Secretary shall establish equitable treatment 
for non-yield based policies and plans of insurance, such 
as the Adjusted Gross Revenue Lite insurance program. 
‘‘(4) FARM REVENUE.— 
‘‘(A) IN GENERAL.—For purposes of this subsection, the 
total farm revenue for a farm, shall equal the sum obtained 
by adding— 
‘‘(i) the estimated actual value for each crop pro-
duced on a farm by using the product obtained by 
multiplying— 
‘‘(I) the actual crop acreage harvested by an 
eligible producer on a farm; 
‘‘(II) the estimated actual yield of the crop 
production; and 
‘‘(III) subject to subparagraphs (B) and (C), 
to the extent practicable, the national average 
market price received for the marketing year, as 
determined by the Secretary; 
‘‘(ii) 15 percent of amount of any direct payments 
made to the producer under sections 1103 and 1303 
of the Food, Conservation, and Energy Act of 2008 
or successor sections;
H. R. 6124—601 
‘‘(iii) the total amount of any counter-cyclical pay-
ments made to the producer under sections 1104 and 
1304 of the Food, Conservation, and Energy Act of 
2008 or successor sections or of any average crop rev-
enue election payments made to the producer under 
section 1105 of that Act; 
‘‘(iv) the total amount of any loan deficiency pay-
ments, marketing loan gains, and marketing certificate 
gains made to the producer under subtitles B and 
C of the Food, Conservation, and Energy Act of 2008 
or successor subtitles; 
‘‘(v) the amount of payments for prevented planting 
on a farm; 
‘‘(vi) the amount of crop insurance indemnities 
received by an eligible producer on a farm for each 
crop on a farm; 
‘‘(vii) the amount of payments an eligible producer 
on a farm received under the noninsured crop assist-
ance program for each crop on a farm; and 
‘‘(viii) the value of any other natural disaster 
assistance payments provided by the Federal Govern-
ment to an eligible producer on a farm for each crop 
on a farm for the same loss for which the eligible 
producer is seeking assistance. 
‘‘(B) ADJUSTMENT.—The Secretary shall adjust the 
average market price received by the eligible producer on 
a farm— 
‘‘(i) to reflect the average quality discounts applied 
to the local or regional market price of a crop or 
mechanically harvested forage due to a reduction in 
the intrinsic characteristics of the production resulting 
from adverse weather, as determined annually by the 
State office of the Farm Service Agency; and 
‘‘(ii) to account for a crop the value of which is 
reduced due to excess moisture resulting from a dis-
aster-related condition. 
‘‘(C) MAXIMUM
AMOUNT
FOR
CERTAIN
CROPS.—With 
respect to a crop for which an eligible producer on a farm 
receives assistance under the noninsured crop assistance 
program, the national average market price received during 
the marketing year shall be an amount not more than 
100 percent of the price of the crop established under 
the noninsured crop assistance program. 
‘‘(5) EXPECTED REVENUE.—The expected revenue for each 
crop on a farm shall equal the sum obtained by adding— 
‘‘(A) the product obtained by multiplying— 
‘‘(i) the greatest of— 
‘‘(I) the adjusted actual production history 
yield of the eligible producer on a farm; and 
‘‘(II) the counter-cyclical program payment 
yield; 
‘‘(ii) the acreage planted or prevented from being 
planted for each crop; and 
‘‘(iii) 100 percent of the insurance price guarantee; 
and 
‘‘(B) the product obtained by multiplying—
H. R. 6124—602 
‘‘(i) 100 percent of the adjusted noninsured crop 
assistance program yield; and 
‘‘(ii) 100 percent of the noninsured crop assistance 
program price for each of the crops on a farm. 
‘‘(c) LIVESTOCK INDEMNITY PAYMENTS.— 
‘‘(1) PAYMENTS.—The Secretary shall use such sums as 
are necessary from the Trust Fund to make livestock indemnity 
payments to eligible producers on farms that have incurred 
livestock death losses in excess of the normal mortality due 
to adverse weather, as determined by the Secretary, during 
the calendar year, including losses due to hurricanes, floods, 
blizzards, disease, wildfires, extreme heat, and extreme cold. 
‘‘(2) PAYMENT RATES.—Indemnity payments to an eligible 
producer on a farm under paragraph (1) shall be made at 
a rate of 75 percent of the market value of the applicable 
livestock on the day before the date of death of the livestock, 
as determined by the Secretary. 
‘‘(d) LIVESTOCK FORAGE DISASTER PROGRAM.— 
‘‘(1) DEFINITIONS.—In this subsection: 
‘‘(A) COVERED LIVESTOCK.— 
‘‘(i) IN
GENERAL.—The term ‘covered livestock’ 
means livestock of an eligible livestock producer that, 
during the 60 days prior to the beginning date of 
a qualifying drought or fire condition, as determined 
by the Secretary, the eligible livestock producer— 
‘‘(I) owned; 
‘‘(II) leased; 
‘‘(III) purchased; 
‘‘(IV) entered into a contract to purchase; 
‘‘(V) is a contract grower; or 
‘‘(VI) sold or otherwise disposed of due to quali-
fying drought conditions during— 
‘‘(aa) the current production year; or 
‘‘(bb) subject to paragraph (3)(B)(ii), 1 or 
both of the 2 production years immediately 
preceding the current production year. 
‘‘(ii) EXCLUSION.—The term ‘covered livestock’ does 
not include livestock that were or would have been 
in a feedlot, on the beginning date of the qualifying 
drought or fire condition, as a part of the normal 
business operation of the eligible livestock producer, 
as determined by the Secretary. 
‘‘(B) DROUGHT MONITOR.—The term ‘drought monitor’ 
means a system for classifying drought severity according 
to a range of abnormally dry to exceptional drought, as 
defined by the Secretary. 
‘‘(C) ELIGIBLE LIVESTOCK PRODUCER.— 
‘‘(i) IN GENERAL.—The term ‘eligible livestock pro-
ducer’ means an eligible producer on a farm that— 
‘‘(I) is an owner, cash or share lessee, or con-
tract grower of covered livestock that provides the 
pastureland or grazing land, including cash-leased 
pastureland or grazing land, for the livestock; 
‘‘(II) provides the pastureland or grazing land 
for 
covered 
livestock, 
including 
cash-leased 
pastureland or grazing land that is physically 
located in a county affected by drought;
H. R. 6124—603 
‘‘(III) certifies grazing loss; and 
‘‘(IV) meets all other eligibility requirements 
established under this subsection. 
‘‘(ii) EXCLUSION.—The term ‘eligible livestock pro-
ducer’ does not include an owner, cash or share lessee, 
or contract grower of livestock that rents or leases 
pastureland or grazing land owned by another person 
on a rate-of-gain basis. 
‘‘(D) NORMAL CARRYING CAPACITY.—The term ‘normal 
carrying capacity’, with respect to each type of grazing 
land or pastureland in a county, means the normal carrying 
capacity, as determined under paragraph (3)(D)(i), that 
would be expected from the grazing land or pastureland 
for livestock during the normal grazing period, in the 
absence of a drought or fire that diminishes the production 
of the grazing land or pastureland. 
‘‘(E) NORMAL
GRAZING
PERIOD.—The term ‘normal 
grazing period’, with respect to a county, means the normal 
grazing period during the calendar year for the county, 
as determined under paragraph (3)(D)(i). 
‘‘(2) PROGRAM.—The Secretary shall use such sums as are 
necessary from the Trust Fund to provide compensation for 
losses to eligible livestock producers due to grazing losses for 
covered livestock due to— 
‘‘(A) a drought condition, as described in paragraph 
(3); or 
‘‘(B) fire, as described in paragraph (4). 
‘‘(3) ASSISTANCE
FOR
LOSSES
DUE
TO
DROUGHT
CONDI-
TIONS.— 
‘‘(A) ELIGIBLE LOSSES.— 
‘‘(i) IN GENERAL.—An eligible livestock producer 
may receive assistance under this subsection only for 
grazing losses for covered livestock that occur on land 
that— 
‘‘(I) is native or improved pastureland with 
permanent vegetative cover; or 
‘‘(II) is planted to a crop planted specifically 
for the purpose of providing grazing for covered 
livestock. 
‘‘(ii) EXCLUSIONS.—An eligible livestock producer 
may not receive assistance under this subsection for 
grazing losses that occur on land used for haying or 
grazing under the conservation reserve program estab-
lished 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.). 
‘‘(B) MONTHLY PAYMENT RATE.— 
‘‘(i) IN
GENERAL.—Except as provided in clause 
(ii), the payment rate for assistance under this para-
graph for 1 month shall, in the case of drought, be 
equal to 60 percent of the lesser of— 
‘‘(I) the monthly feed cost for all covered live-
stock owned or leased by the eligible livestock 
producer, as determined under subparagraph (C); 
or
H. R. 6124—604 
‘‘(II) the monthly feed cost calculated by using 
the normal carrying capacity of the eligible grazing 
land of the eligible livestock producer. 
‘‘(ii) PARTIAL COMPENSATION.—In the case of an 
eligible livestock producer that sold or otherwise dis-
posed of covered livestock due to drought conditions 
in 1 or both of the 2 production years immediately 
preceding the current production year, as determined 
by the Secretary, the payment rate shall be 80 percent 
of the payment rate otherwise calculated in accordance 
with clause (i). 
‘‘(C) MONTHLY FEED COST.— 
‘‘(i) IN
GENERAL.—The monthly feed cost shall 
equal the product obtained by multiplying— 
‘‘(I) 30 days; 
‘‘(II) a payment quantity that is equal to the 
feed grain equivalent, as determined under clause 
(ii); and 
‘‘(III) a payment rate that is equal to the corn 
price per pound, as determined under clause (iii). 
‘‘(ii) FEED
GRAIN
EQUIVALENT.—For purposes of 
clause (i)(I), the feed grain equivalent shall equal— 
‘‘(I) in the case of an adult beef cow, 15.7 
pounds of corn per day; or 
‘‘(II) in the case of any other type of weight 
of livestock, an amount determined by the Sec-
retary that represents the average number of 
pounds of corn per day necessary to feed the live-
stock. 
‘‘(iii) CORN
PRICE
PER
POUND.—For purposes of 
clause (i)(II), the corn price per pound shall equal 
the quotient obtained by dividing— 
‘‘(I) the higher of— 
‘‘(aa) the national average corn price per 
bushel for the 12-month period immediately 
preceding March 1 of the year for which the 
disaster assistance is calculated; or 
‘‘(bb) the national average corn price per 
bushel for the 24-month period immediately 
preceding that March 1; by 
‘‘(II) 56. 
‘‘(D) NORMAL GRAZING PERIOD AND DROUGHT MONITOR 
INTENSITY.— 
‘‘(i) FSA COUNTY COMMITTEE DETERMINATIONS.— 
‘‘(I) IN GENERAL.—The Secretary shall deter-
mine the normal carrying capacity and normal 
grazing period for each type of grazing land or 
pastureland in the county served by the applicable 
committee. 
‘‘(II) CHANGES.—No change to the normal car-
rying capacity or normal grazing period established 
for a county under subclause (I) shall be made 
unless the change is requested by the appropriate 
State and county Farm Service Agency committees. 
‘‘(ii) DROUGHT INTENSITY.— 
‘‘(I) D2.—An eligible livestock producer that 
owns or leases grazing land or pastureland that
H. R. 6124—605 
is physically located in a county that is rated by 
the U.S. Drought Monitor as having a D2 (severe 
drought) intensity in any area of the county for 
at least 8 consecutive weeks during the normal 
grazing period for the county, as determined by 
the Secretary, shall be eligible to receive assistance 
under this paragraph in an amount equal to 1 
monthly payment using the monthly payment rate 
determined under subparagraph (B). 
‘‘(II) D3.—An eligible livestock producer that 
owns or leases grazing land or pastureland that 
is physically located in a county that is rated by 
the U.S. Drought Monitor as having at least a 
D3 (extreme drought) intensity in any area of the 
county at any time during the normal grazing 
period for the county, as determined by the Sec-
retary, shall be eligible to receive assistance under 
this paragraph— 
‘‘(aa) in an amount equal to 2 monthly 
payments using the monthly payment rate 
determined under subparagraph (B); or 
‘‘(bb) if the county is rated as having a 
D3 (extreme drought) intensity in any area 
of the county for at least 4 weeks during the 
normal grazing period for the county, or is 
rated as having a D4 (exceptional drought) 
intensity in any area of the county at any 
time during the normal grazing period, in an 
amount equal to 3 monthly payments using 
the monthly payment rate determined under 
subparagraph (B). 
‘‘(4) ASSISTANCE FOR LOSSES DUE TO FIRE ON PUBLIC MAN-
AGED LAND.— 
‘‘(A) IN GENERAL.—An eligible livestock producer may 
receive assistance under this paragraph only if— 
‘‘(i) the grazing losses occur on rangeland that 
is managed by a Federal agency; and 
‘‘(ii) the eligible livestock producer is prohibited 
by the Federal agency from grazing the normal per-
mitted livestock on the managed rangeland due to 
a fire. 
‘‘(B) PAYMENT RATE.—The payment rate for assistance 
under this paragraph shall be equal to 50 percent of the 
monthly feed cost for the total number of livestock covered 
by the Federal lease of the eligible livestock producer, 
as determined under paragraph (3)(C). 
‘‘(C) PAYMENT DURATION.— 
‘‘(i) IN GENERAL.—Subject to clause (ii), an eligible 
livestock producer shall be eligible to receive assistance 
under this paragraph for the period— 
‘‘(I) beginning on the date on which the Fed-
eral agency excludes the eligible livestock producer 
from using the managed rangeland for grazing; 
and 
‘‘(II) ending on the last day of the Federal 
lease of the eligible livestock producer.
H. R. 6124—606 
‘‘(ii) LIMITATION.—An eligible livestock producer 
may only receive assistance under this paragraph for 
losses that occur on not more than 180 days per year. 
‘‘(5) MINIMUM
RISK
MANAGEMENT
PURCHASE
REQUIRE-
MENTS.— 
‘‘(A) IN
GENERAL.—Except as otherwise provided in 
this paragraph, a livestock producer shall only be eligible 
for assistance under this subsection if the livestock pro-
ducer— 
‘‘(i) obtained a policy or plan of insurance under 
the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) 
for the grazing land incurring the losses for which 
assistance is being requested; or 
‘‘(ii) filed the required paperwork, and paid the 
administrative fee by the applicable State filing dead-
line, for the noninsured crop assistance program for 
the grazing land incurring the losses for which assist-
ance is being requested. 
‘‘(B) WAIVER FOR SOCIALLY DISADVANTAGED, LIMITED 
RESOURCE, OR
BEGINNING
FARMER
OR
RANCHER.—In the 
case of an eligible livestock producer that is a socially 
disadvantaged farmer or rancher or limited resource or 
beginning farmer or rancher, as determined by the Sec-
retary, the Secretary may— 
‘‘(i) waive subparagraph (A); and 
‘‘(ii) provide disaster assistance under this section 
at a level that the Secretary determines to be equitable 
and appropriate. 
‘‘(C) WAIVER FOR 2008 CALENDAR YEAR.—In the case 
of an eligible livestock producer that suffered losses on 
grazing land during the 2008 calendar year but does not 
meet the requirements of subparagraph (A), the Secretary 
shall waive subparagraph (A) if the eligible livestock pro-
ducer pays a fee in an amount equal to the applicable 
noninsured crop assistance program fee or catastrophic 
risk protection plan fee required under subparagraph (A) 
to the Secretary not later than 90 days after the date 
of enactment of this subtitle. 
‘‘(D) EQUITABLE RELIEF.— 
‘‘(i) IN GENERAL.—The Secretary may provide equi-
table relief to an eligible livestock producer that is 
otherwise ineligible or unintentionally fails to meet 
the requirements of subparagraph (A) for the grazing 
land incurring the loss on a case-by-case basis, as 
determined by the Secretary. 
‘‘(ii) 2008 CALENDAR
YEAR.—In the case of an 
eligible livestock producer that suffered losses on 
grazing land during the 2008 calendar year, the Sec-
retary shall take special consideration to provide equi-
table relief in cases in which the eligible livestock 
producer failed to meet the requirements of subpara-
graph (A) due to the enactment of this title after the 
closing date of sales periods for crop insurance under 
the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) 
and the noninsured crop assistance program. 
‘‘(6) NO DUPLICATIVE PAYMENTS.—
H. R. 6124—607 
‘‘(A) IN GENERAL.—An eligible livestock producer may 
elect to receive assistance for grazing or pasture feed losses 
due to drought conditions under paragraph (3) or fire under 
paragraph (4), but not both for the same loss, as determined 
by the Secretary. 
‘‘(B) RELATIONSHIP TO SUPPLEMENTAL REVENUE ASSIST-
ANCE.—An eligible livestock producer that receives assist-
ance under this subsection may not also receive assistance 
for losses to crops on the same land with the same intended 
use under subsection (b). 
‘‘(e) EMERGENCY ASSISTANCE FOR LIVESTOCK, HONEY BEES, AND 
FARM-RAISED FISH.— 
‘‘(1) 
IN
GENERAL.—The 
Secretary 
shall 
use 
up 
to 
$50,000,000 per year from the Trust Fund to provide emergency 
relief to eligible producers of livestock, honey bees, and farm- 
raised fish to aid in the reduction of losses due to disease, 
adverse weather, or other conditions, such as blizzards and 
wildfires, as determined by the Secretary, that are not covered 
under subsection (b), (c), or (d). 
‘‘(2) USE OF FUNDS.—Funds made available under this sub-
section shall be used to reduce losses caused by feed or water 
shortages, disease, or other factors as determined by the Sec-
retary. 
‘‘(3) AVAILABILITY OF FUNDS.—Any funds made available 
under this subsection shall remain available until expended. 
‘‘(f) TREE ASSISTANCE PROGRAM.— 
‘‘(1) DEFINITIONS.—In this subsection: 
‘‘(A) 
ELIGIBLE
ORCHARDIST.—The 
term 
‘eligible 
orchardist’ means a person that produces annual crops 
from trees for commercial purposes. 
‘‘(B) NATURAL DISASTER.—The term ‘natural disaster’ 
means plant disease, insect infestation, drought, fire, 
freeze, flood, earthquake, lightning, or other occurrence, 
as determined by the Secretary. 
‘‘(C) NURSERY TREE GROWER.—The term ‘nursery tree 
grower’ means a person who produces nursery, ornamental, 
fruit, nut, or Christmas trees for commercial sale, as deter-
mined by the Secretary. 
‘‘(D) TREE.—The term ‘tree’ includes a tree, bush, and 
vine. 
‘‘(2) ELIGIBILITY.— 
‘‘(A) LOSS.—Subject to subparagraph (B), the Secretary 
shall provide assistance— 
‘‘(i) under paragraph (3) to eligible orchardists and 
nursery tree growers that planted trees for commercial 
purposes but lost the trees as a result of a natural 
disaster, as determined by the Secretary; and 
‘‘(ii) under paragraph (3)(B) to eligible orchardists 
and nursery tree growers that have a production his-
tory for commercial purposes on planted or existing 
trees but lost the trees as a result of a natural disaster, 
as determined by the Secretary. 
‘‘(B) LIMITATION.—An eligible orchardist or nursery 
tree grower shall qualify for assistance under subparagraph 
(A) only if the tree mortality of the eligible orchardist 
or nursery tree grower, as a result of damaging weather
H. R. 6124—608 
or related condition, exceeds 15 percent (adjusted for 
normal mortality). 
‘‘(3) ASSISTANCE.—Subject to paragraph (4), the assistance 
provided by the Secretary to eligible orchardists and nursery 
tree growers for losses described in paragraph (2) shall consist 
of— 
‘‘(A)(i) reimbursement of 70 percent of the cost of 
replanting trees lost due to a natural disaster, as deter-
mined by the Secretary, in excess of 15 percent mortality 
(adjusted for normal mortality); or 
‘‘(ii) at the option of the Secretary, sufficient seedlings 
to reestablish a stand; and 
‘‘(B) reimbursement of 50 percent of the cost of pruning, 
removal, and other costs incurred by an eligible orchardist 
or nursery tree grower to salvage existing trees or, in 
the case of tree mortality, to prepare the land to replant 
trees as a result of damage or tree mortality due to a 
natural disaster, as determined by the Secretary, in excess 
of 15 percent damage or mortality (adjusted for normal 
tree damage and mortality). 
‘‘(4) LIMITATIONS ON ASSISTANCE.— 
‘‘(A) DEFINITIONS OF LEGAL ENTITY AND PERSON.—In 
this paragraph, the terms ‘legal entity’ and ‘person’ have 
the meaning given those terms in section 1001(a) of the 
Food Security Act of 1985 (7 U.S.C. 1308(a) (as amended 
by section 1603 of the Food, Conservation, and Energy 
Act of 2008). 
‘‘(B) AMOUNT.—The total amount of payments received, 
directly or indirectly, by a person or legal entity (excluding 
a joint venture or general partnership) under this sub-
section may not exceed $100,000 for any crop year, or 
an equivalent value in tree seedlings. 
‘‘(C) ACRES.—The total quantity of acres planted to 
trees or tree seedlings for which a person or legal entity 
shall be entitled to receive payments under this subsection 
may not exceed 500 acres. 
‘‘(g) RISK MANAGEMENT PURCHASE REQUIREMENT.— 
‘‘(1) IN GENERAL.—Except as otherwise provided in this 
section, the eligible producers on a farm shall not be eligible 
for assistance under this section (other than subsection (c)) 
if the eligible producers on the farm— 
‘‘(A) in the case of each insurable commodity of the 
eligible producers on the farm, did not obtain a policy 
or plan of insurance under the Federal Crop Insurance 
Act (7 U.S.C. 1501 et seq.) (excluding a crop insurance 
pilot program under that Act); or 
‘‘(B) in the case of each noninsurable commodity of 
the eligible producers on the farm, did not file the required 
paperwork, and pay the administrative fee by the 
applicable State filing deadline, for the noninsured crop 
assistance program. 
‘‘(2) MINIMUM.—To be considered to have obtained insur-
ance under paragraph (1)(A), an eligible producer on a farm 
shall have obtained a policy or plan of insurance with not 
less than 50 percent yield coverage at 55 percent of the insur-
able price for each crop grazed, planted, or intended to be 
planted for harvest on a whole farm.
H. R. 6124—609 
‘‘(3) WAIVER
FOR
SOCIALLY
DISADVANTAGED, 
LIMITED 
RESOURCE, OR BEGINNING FARMER OR RANCHER.—With respect 
to eligible producers that are socially disadvantaged farmers 
or ranchers or limited resource or beginning farmers or 
ranchers, as determined by the Secretary, the Secretary may— 
‘‘(A) waive paragraph (1); and 
‘‘(B) provide disaster assistance under this section at 
a level that the Secretary determines to be equitable and 
appropriate. 
‘‘(4) WAIVER FOR 2008 CROP YEAR.—In the case of an eligible 
producer that suffered losses in an insurable commodity or 
noninsurable commodity during the 2008 crop year but does 
not meet the requirements of paragraph (1), the Secretary 
shall waive paragraph (1) if the eligible producer pays a fee 
in an amount equal to the applicable noninsured crop assistance 
program fee or catastrophic risk protection plan fee required 
under paragraph (1) to the Secretary not later than 90 days 
after the date of enactment of this subtitle. 
‘‘(5) EQUITABLE RELIEF.— 
‘‘(A) IN GENERAL.—The Secretary may provide equi-
table relief to eligible producers on a farm that are other-
wise ineligible or unintentionally fail to meet the require-
ments of paragraph (1) for 1 or more crops on a farm 
on a case-by-case basis, as determined by the Secretary. 
‘‘(B) 2008 CROP YEAR.—In the case of eligible producers 
on a farm that suffered losses in an insurable commodity 
or noninsurable commodity during the 2008 crop year, the 
Secretary shall take special consideration to provide equi-
table relief in cases in which the eligible producers failed 
to meet the requirements of paragraph (1) due to the 
enactment of this title after the closing date of sales periods 
for crop insurance under the Federal Crop Insurance Act 
(7 U.S.C. 1501 et seq.) and the noninsured crop assistance 
program. 
‘‘(h) PAYMENT LIMITATIONS.— 
‘‘(1) DEFINITIONS OF LEGAL ENTITY AND PERSON.—In this 
subsection, the terms ‘legal entity’ and ‘person’ have the 
meaning given those terms in section 1001(a) of the Food Secu-
rity Act of 1985 (7 U.S.C. 1308(a) (as amended by section 
1603 of the Food, Conservation, and Energy Act of 2008). 
‘‘(2) AMOUNT.—The total amount of disaster assistance pay-
ments received, directly or indirectly, by a person or legal 
entity (excluding a joint venture or general partnership) under 
this section (excluding payments received under subsection (f)) 
may not exceed $100,000 for any crop year. 
‘‘(3) AGI LIMITATION.—Section 1001D of the Food Security 
Act of 1985 (7 U.S.C. 1308–3a) or any successor provision 
shall apply with respect to assistance provided under this sec-
tion. 
‘‘(4) DIRECT ATTRIBUTION.—Subsections (e) and (f) of section 
1001 of the Food Security Act of 1985 (7 U.S.C. 1308) or 
any successor provisions relating to direct attribution shall 
apply with respect to assistance provided under this section. 
‘‘(i) PERIOD OF EFFECTIVENESS.—This section shall be effective 
only for losses that are incurred as the result of a disaster, adverse 
weather, or other environmental condition that occurs on or before 
September 30, 2011, as determined by the Secretary.
H. R. 6124—610 
‘‘(j) NO DUPLICATIVE PAYMENTS.—In implementing any other 
program which makes disaster assistance payments (except for 
indemnities made under the Federal Crop Insurance Act (7 U.S.C. 
1501 et seq.)) and section 196 of the Federal Agriculture Improve-
ment and Reform Act of 1996), the Secretary shall prevent duplica-
tive payments with respect to the same loss for which a person 
receives a payment under subsections (b), (c), (d), (e), or (f). 
‘‘SEC. 902. AGRICULTURAL DISASTER RELIEF TRUST FUND. 
‘‘(a) CREATION OF TRUST FUND.—There is established in the 
Treasury of the United States a trust fund to be known as the 
‘Agricultural Disaster Relief Trust Fund’, consisting of such 
amounts as may be appropriated or credited to such Trust Fund 
as provided in this section. 
‘‘(b) TRANSFER TO TRUST FUND.— 
‘‘(1) IN GENERAL.—There are appropriated to the Agricul-
tural Disaster Relief Trust Fund amounts equivalent to 3.08 
percent of the amounts received in the general fund of the 
Treasury of the United States during fiscal years 2008 through 
2011 attributable to the duties collected on articles entered, 
or withdrawn from warehouse, for consumption under the Har-
monized Tariff Schedule of the United States. 
‘‘(2) AMOUNTS BASED ON ESTIMATES.—The amounts appro-
priated under this section shall be transferred at least monthly 
from the general fund of the Treasury of the United States 
to the Agricultural Disaster Relief Trust Fund on the basis 
of estimates made by the Secretary of the Treasury. Proper 
adjustments shall be made in the amounts subsequently trans-
ferred to the extent prior estimates were in excess of or less 
than the amounts required to be transferred. 
‘‘(3) LIMITATION ON TRANSFERS TO AGRICULTURAL DISASTER 
RELIEF TRUST FUND.—No amount may be appropriated to the 
Agricultural Disaster Relief Trust Fund on and after the date 
of any expenditure from the Agricultural Disaster Relief Trust 
Fund which is not permitted by this section. The determination 
of whether an expenditure is so permitted shall be made with-
out regard to— 
‘‘(A) any provision of law which is not contained or 
referenced in this title or in a revenue Act, and 
‘‘(B) whether such provision of law is a subsequently 
enacted provision or directly or indirectly seeks to waive 
the application of this paragraph. 
‘‘(c) ADMINISTRATION.— 
‘‘(1) REPORTS.—The Secretary of the Treasury shall be the 
trustee of the Agricultural Disaster Relief Trust Fund and 
shall submit an annual report to Congress each year on the 
financial condition and the results of the operations of such 
Trust Fund during the preceding fiscal year and on its expected 
condition and operations during the 4 fiscal years succeeding 
such fiscal year. Such report shall be printed as a House 
document of the session of Congress to which the report is 
made. 
‘‘(2) INVESTMENT.— 
‘‘(A) IN GENERAL.—The Secretary of the Treasury shall 
invest such portion of the Agricultural Disaster Relief Trust 
Fund as is not in his judgment required to meet current 
withdrawals. Such investments may be made only in
H. R. 6124—611 
interest bearing obligations of the United States. For such 
purpose, such obligations may be acquired— 
‘‘(i) on original issue at the issue price, or 
‘‘(ii) by purchase of outstanding obligations at the 
market price. 
‘‘(B) SALE OF OBLIGATIONS.—Any obligation acquired 
by the Agricultural Disaster Relief Trust Fund may be 
sold by the Secretary of the Treasury at the market price. 
‘‘(C) INTEREST
ON
CERTAIN
PROCEEDS.—The interest 
on, and the proceeds from the sale or redemption of, any 
obligations held in the Agricultural Disaster Relief Trust 
Fund shall be credited to and form a part of such Trust 
Fund. 
‘‘(d) EXPENDITURES FROM TRUST FUND.—Amounts in the Agri-
cultural Disaster Relief Trust Fund shall be available for the pur-
poses of making expenditures to meet those obligations of the 
United States incurred under section 901 or section 531 of the 
Federal Crop Insurance Act (as such sections are in effect on the 
date of the enactment of the Food, Conservation, and Energy Act 
of 2008). 
‘‘(e) AUTHORITY TO BORROW.— 
‘‘(1) IN GENERAL.—There are authorized to be appropriated, 
and are appropriated, to the Agricultural Disaster Relief Trust 
Fund, as repayable advances, such sums as may be necessary 
to carry out the purposes of such Trust Fund. 
‘‘(2) REPAYMENT OF ADVANCES.— 
‘‘(A) IN GENERAL.—Advances made to the Agricultural 
Disaster Relief Trust Fund shall be repaid, and interest 
on such advances shall be paid, to the general fund of 
the Treasury when the Secretary determines that moneys 
are available for such purposes in such Trust Fund. 
‘‘(B) RATE OF INTEREST.—Interest on advances made 
pursuant to this subsection shall be— 
‘‘(i) at a rate determined by the Secretary of the 
Treasury (as of the close of the calendar month pre-
ceding the month in which the advance is made) to 
be equal to the current average market yield on out-
standing marketable obligations of the United States 
with remaining periods to maturity comparable to the 
anticipated period during which the advance will be 
outstanding, and 
‘‘(ii) compounded annually. 
‘‘SEC. 903. JURISDICTION. 
‘‘Legislation in the Senate of the United States amending sec-
tion 901 or 902 shall be referred to the Committee on Finance 
of the Senate.’’. 
(b) TRANSITION.—For purposes of the 2008 crop year, the Sec-
retary shall carry out subsections (f)(4) and (h) of section 901 
of the Trade Act of 1974 (as added by subsection (a)) in accordance 
with the terms and conditions of sections 1001 through 1001D 
of the Food Security Act of 1985 (16 U.S.C. 1308 et seq.), as 
in effect on September 30, 2007. 
(c) CLERICAL AMENDMENT.—The table of contents for the Trade 
Act of 1974 (19 U.S.C. 2101 et seq.) is amended by adding at 
the end the following:
H. R. 6124—612 
‘‘TITLE IX—SUPPLEMENTAL AGRICULTURAL DISASTER ASSISTANCE 
‘‘Sec. 901. Supplemental agricultural disaster assistance. 
‘‘Sec. 902. Agricultural Disaster Relief Trust Fund. 
‘‘Sec. 903. Jurisdiction.’’. 
Subtitle B—Revenue Provisions for 
Agriculture Programs 
SEC. 15201. CUSTOMS USER FEES. 
(a) IN GENERAL.—Section 13031(j)(3)(A) of the Consolidated 
Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(j)(3)(A)) 
is amended by striking ‘‘December 27, 2014’’ and inserting 
‘‘November 14, 2017’’. 
(b) OTHER FEES.—Section 13031(j)(3)(B)(i) of the Consolidated 
Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(j)(3)(B)(i)) 
is amended by striking ‘‘December 27, 2014’’ and inserting ‘‘Sep-
tember 30, 2017’’. 
(c) TIME
FOR REMITTING CERTAIN COBRA FEES.—Notwith-
standing any other provision of law, any fees authorized under 
paragraphs (1) through (8) of section 13031(a) of the Consolidated 
Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(a) (1) 
through (8)) with respect to customs services provided on or after 
July 1, 2017, and before September 20, 2017, shall be paid not 
later than September 25, 2017. 
(d) TIME FOR REMITTING CERTAIN MERCHANDISE PROCESSING 
FEES.— 
(1) IN GENERAL.—Notwithstanding any other provision of 
law, any fees authorized under paragraphs (9) and (10) of 
section 13031(a) of the Consolidated Omnibus Budget Reconcili-
ation Act of 1985 (19 U.S.C. 58c(a) (9) and (10)) with respect 
to processing merchandise entered on or after October 1, 2017, 
and before November 15, 2017, shall be paid not later than 
September 25, 2017, in an amount equivalent to the amount 
of such fees paid by the person responsible for such fees with 
respect to merchandise entered on or after October 1, 2016, 
and before November 15, 2016, as determined by the Secretary 
of the Treasury. 
(2) RECONCILIATION OF MERCHANDISE PROCESSING FEES.— 
Not later than December 15, 2017, the Secretary of the 
Treasury shall reconcile the fees paid pursuant to paragraph 
(1) with the fees for services actually provided on or after 
October 1, 2017, and before November 15, 2017, and shall 
refund with interest any overpayment of such fees and make 
proper adjustments with respect to any underpayment of such 
fees. No interest may be assessed with respect to any such 
underpayment that was based on the amount of fees paid 
for merchandise entered on or after October 1, 2016, and before 
November 15, 2016. 
SEC. 15202. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES. 
The percentage under subparagraph (B) of section 401(1) of 
the Tax Increase Prevention and Reconciliation Act of 2005 in 
effect on the date of the enactment of this Act is increased by 
7.75 percentage points.
H. R. 6124—613 
Subtitle C—Tax Provisions 
PART I—CONSERVATION 
Subpart A—Land and Species Preservation 
Provisions 
SEC. 15301. EXCLUSION OF CONSERVATION RESERVE PROGRAM PAY-
MENTS FROM SECA TAX FOR CERTAIN INDIVIDUALS. 
(a) INTERNAL REVENUE CODE.—Section 1402(a)(1) (defining net 
earnings from self-employment) is amended by inserting ‘‘, and 
including payments under section 1233(2) of the Food Security 
Act of 1985 (16 U.S.C. 3833(2)) to individuals receiving benefits 
under section 202 or 223 of the Social Security Act’’ after ‘‘crop 
shares’’. 
(b) SOCIAL SECURITY ACT.—Section 211(a)(1) of the Social Secu-
rity Act is amended by inserting ‘‘, and including payments under 
section 1233(2) of the Food Security Act of 1985 (16 U.S.C. 3833(2)) 
to individuals receiving benefits under section 202 or 223’’ after 
‘‘crop shares’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to payments made after December 31, 2007. 
SEC. 15302. TWO-YEAR EXTENSION OF SPECIAL RULE ENCOURAGING 
CONTRIBUTIONS OF CAPITAL GAIN REAL PROPERTY 
FOR CONSERVATION PURPOSES. 
(a) IN GENERAL.— 
(1) INDIVIDUALS.—Section 170(b)(1)(E)(vi) (relating to 
termination) is amended by striking ‘‘December 31, 2007’’ and 
inserting ‘‘December 31, 2009’’. 
(2) CORPORATIONS.—Section 170(b)(2)(B)(iii) (relating to 
termination) is amended by striking ‘‘December 31, 2007’’ and 
inserting ‘‘December 31, 2009’’. 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall apply to contributions made in taxable years beginning after 
December 31, 2007. 
SEC. 15303. DEDUCTION FOR ENDANGERED SPECIES RECOVERY 
EXPENDITURES. 
(a) DEDUCTION FOR ENDANGERED SPECIES RECOVERY EXPENDI-
TURES.— 
(1) IN GENERAL.—Paragraph (1) of section 175(c) (relating 
to definitions) is amended by inserting after the first sentence 
the following new sentence: ‘‘Such term shall include expendi-
tures paid or incurred for the purpose of achieving site-specific 
management actions recommended in recovery plans approved 
pursuant to the Endangered Species Act of 1973.’’. 
(2) CONFORMING AMENDMENTS.— 
(A) Section 175 is amended by inserting ‘‘, or for endan-
gered species recovery’’ after ‘‘prevention of erosion of land 
used in farming’’ each place it appears in subsections (a) 
and (c). 
(B) The heading of section 175 is amended by inserting 
‘‘; ENDANGERED SPECIES RECOVERY EXPENDITURES’’ before 
the period. 
(C) The item relating to section 175 in the table of 
sections for part VI of subchapter B of chapter 1 is amended
H. R. 6124—614 
by inserting ‘‘; endangered species recovery expenditures’’ 
before the period. 
(b) LIMITATIONS.—Paragraph (3) of section 175(c) (relating to 
additional limitations) is amended— 
(1) in the heading of subparagraph (A), by inserting ‘‘OR 
ENDANGERED
SPECIES
RECOVERY
PLAN’’ after ‘‘CONSERVATION 
PLAN’’, and 
(2) in subparagraph (A)(i), by inserting ‘‘or the recovery 
plan approved pursuant to the Endangered Species Act of 1973’’ 
after ‘‘Department of Agriculture’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to expenditures paid or incurred after December 31, 
2008. 
Subpart B—Timber Provisions 
SEC. 15311. TEMPORARY REDUCTION IN RATE OF TAX ON QUALIFIED 
TIMBER GAIN OF CORPORATIONS. 
(a) IN GENERAL.—Section 1201 (relating to alternative tax for 
corporations) is amended by redesignating subsection (b) as sub-
section (c) and by adding after subsection (a) the following new 
subsection: 
‘‘(b) SPECIAL RATE FOR QUALIFIED TIMBER GAINS.— 
‘‘(1) IN GENERAL.—If, for any taxable year ending after 
the date of the enactment of the Food, Conservation, and 
Energy Act of 2008 and beginning on or before the date which 
is 1 year after such date, a corporation has both a net capital 
gain and qualified timber gain— 
‘‘(A) subsection (a) shall apply to such corporation for 
the taxable year without regard to whether the applicable 
tax rate exceeds 35 percent, and 
‘‘(B) the tax computed under subsection (a)(2) shall 
be equal to the sum of— 
‘‘(i) 15 percent of the least of— 
‘‘(I) qualified timber gain, 
‘‘(II) net capital gain, or 
‘‘(III) taxable income, plus 
‘‘(ii) 35 percent of the excess (if any) of taxable 
income over the sum of the amounts for which a tax 
was determined under subsection (a)(1) and clause (i). 
‘‘(2) QUALIFIED TIMBER GAIN.—For purposes of this section, 
the term ‘qualified timber gain’ means, with respect to any 
taxpayer for any taxable year, the excess (if any) of— 
‘‘(A) the sum of the taxpayer’s gains described in sub-
sections (a) and (b) of section 631 for such year, over 
‘‘(B) the sum of the taxpayer’s losses described in such 
subsections for such year. 
For purposes of subparagraphs (A) and (B), only timber held 
more than 15 years shall be taken into account. 
‘‘(3) COMPUTATION FOR TAXABLE YEARS IN WHICH RATE FIRST 
APPLIES
OR
ENDS.—In the case of any taxable year which 
includes either of the dates set forth in paragraph (1), the 
qualified timber gain for such year shall not exceed the qualified 
timber gain properly taken into account for— 
‘‘(A) in the case of the taxable year including the date 
of the enactment of the Food, Conservation, and Energy 
Act of 2008, the portion of the year after such date, and
H. R. 6124—615 
‘‘(B) in the case of the taxable year including the date 
which is 1 year after such date of enactment, the portion 
of the year on or before such later date.’’. 
(b) MINIMUM TAX.—Subsection (b) of section 55 is amended 
by adding at the end the following paragraph: 
‘‘(4) MAXIMUM RATE OF TAX ON QUALIFIED TIMBER GAIN 
OF CORPORATIONS.—In the case of any taxable year to which 
section 1201(b) applies, the amount determined under clause 
(i) of subparagraph (B) shall not exceed the sum of— 
‘‘(A) 20 percent of so much of the taxable excess (if 
any) as exceeds the qualified timber gain (or, if less, the 
net capital gain), plus 
‘‘(B) 15 percent of the taxable excess in excess of the 
amount on which a tax is determined under subparagraph 
(A). 
Any term used in this paragraph which is also used in section 
1201 shall have the meaning given such term by such section, 
except to the extent such term is subject to adjustment under 
this part.’’. 
(c) 
CONFORMING
AMENDMENT.—Section 
857(b)(3)(A)(ii) 
is 
amended by striking ‘‘rate’’ and inserting ‘‘rates’’. 
(d) EFFECTIVE DATE.—The amendments made by this section 
shall apply to taxable years ending after the date of enactment. 
SEC. 15312. TIMBER REIT MODERNIZATION. 
(a) IN GENERAL.—Section 856(c)(5) is amended by adding after 
subparagraph (G) the following new subparagraph: 
‘‘(H) TREATMENT OF TIMBER GAINS.— 
‘‘(i) IN GENERAL.—Gain from the sale of real prop-
erty described in paragraph (2)(D) and (3)(C) shall 
include gain which is— 
‘‘(I) recognized by an election under section 
631(a) from timber owned by the real estate invest-
ment trust, the cutting of which is provided by 
a taxable REIT subsidiary of the real estate invest-
ment trust; 
‘‘(II) recognized under section 631(b); or 
‘‘(III) income which would constitute gain 
under subclause (I) or (II) but for the failure to 
meet the 1-year holding period requirement. 
‘‘(ii) SPECIAL RULES.— 
‘‘(I) For purposes of this subtitle, cut timber, 
the gain from which is recognized by a real estate 
investment trust pursuant to an election under 
section 631(a) described in clause (i)(I) or so much 
of clause (i)(III) as relates to clause (i)(I), shall 
be deemed to be sold to the taxable REIT sub-
sidiary of the real estate investment trust on the 
first day of the taxable year. 
‘‘(II) For purposes of this subtitle, income 
described in this subparagraph shall not be treated 
as gain from the sale of property described in 
section 1221(a)(1). 
‘‘(iii) TERMINATION.—This subparagraph shall not 
apply to dispositions after the termination date.’’. 
(b) TERMINATION
DATE.—Subsection (c) of section 856 is 
amended by adding at the end the following new paragraph:
H. R. 6124—616 
‘‘(8) TERMINATION DATE.—For purposes of this subsection, 
the term ‘termination date’ means, with respect to any taxpayer, 
the last day of the taxpayer’s first taxable year beginning 
after the date of the enactment of this paragraph and before 
the date that is 1 year after such date of enactment.’’. 
(c) EFFECTIVE DATE.—The amendments made by subsection 
(a) shall apply to dispositions in taxable years beginning after 
the date of the enactment of this Act. 
SEC. 15313. MINERAL ROYALTY INCOME QUALIFYING INCOME FOR 
TIMBER REITS. 
(a) IN GENERAL.—Section 856(c)(2) is amended by striking ‘‘and’’ 
at the end of subparagraph (G), by inserting ‘‘and’’ at the end 
of subparagraph (H), and by adding after subparagraph (H) the 
following new subparagraph: 
‘‘(I) mineral royalty income earned in the first taxable 
year beginning after the date of the enactment of this 
subparagraph from real property owned by a timber real 
estate investment trust and held, or once held, in connec-
tion with the trade or business of producing timber by 
such real estate investment trust;’’. 
(b) 
TIMBER
REAL
ESTATE
INVESTMENT
TRUST.—Section 
856(c)(5), as amended by this Act, is amended by adding after 
subparagraph (H) the following new subparagraph: 
‘‘(I) TIMBER
REAL
ESTATE
INVESTMENT
TRUST.—The 
term ‘timber real estate investment trust’ means a real 
estate investment trust in which more than 50 percent 
in value of its total assets consists of real property held 
in connection with the trade or business of producing 
timber.’’. 
(c) EFFECTIVE DATE.—The amendments by this section shall 
apply to taxable years beginning after the date of the enactment 
of this Act. 
SEC. 15314. MODIFICATION OF TAXABLE REIT SUBSIDIARY ASSET TEST 
FOR TIMBER REITS. 
(a) IN
GENERAL.—Section 856(c)(4)(B)(ii) is amended by 
inserting ‘‘(in the case of a quarter which closes on or before the 
termination date, 25 percent in the case of a timber real estate 
investment trust)’’ after ‘‘REIT subsidiaries’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to taxable years beginning after the date of the enact-
ment of this Act. 
SEC. 15315. SAFE HARBOR FOR TIMBER PROPERTY. 
(a) IN GENERAL.—Section 857(b)(6) (relating to income from 
prohibited transactions) is amended by adding at the end the fol-
lowing new subparagraph: 
‘‘(G) SPECIAL RULES FOR SALES TO QUALIFIED ORGANIZA-
TIONS.— 
‘‘(i) IN
GENERAL.—In the case of the sale of a 
real estate asset (as defined in section 856(c)(5)(B)) 
to a qualified organization (as defined in section 
170(h)(3)) exclusively for conservation purposes (within 
the meaning of section 170(h)(1)(C)), subparagraph (D) 
shall be applied— 
‘‘(I) by substituting ‘2 years’ for ‘4 years’ in 
clause (i), and
H. R. 6124—617 
‘‘(II) by substituting ‘2-year period’ for ‘4-year 
period’ in clauses (ii) and (iii). 
‘‘(ii) TERMINATION.—This subparagraph shall not 
apply to sales after the termination date.’’. 
(b) PROHIBITED
TRANSACTIONS.—Section 857(b)(6)(D)(v) is 
amended by inserting ‘‘, or, in the case of a sale on or before 
the termination date, a taxable REIT subsidiary’’ after ‘‘any income’’. 
(c) SALES THAT ARE NOT PROHIBITED TRANSACTIONS.—Section 
857(b)(6), as amended by subsection (a), is amended by adding 
at the end the following new subparagraph: 
‘‘(H) SALES OF PROPERTY THAT ARE NOT A PROHIBITED 
TRANSACTION.—In the case of a sale on or before the termi-
nation date, the sale of property which is not a prohibited 
transaction through the application of subparagraph (D) 
shall be considered property held for investment or for 
use in a trade or business and not property described 
in section 1221(a)(1) for all purposes of this subtitle.’’. 
(d) TERMINATION DATE.—Section 857(b)(6), as amended by sub-
sections (a) and (c), is amended by adding at the end the following 
new subparagraph: 
‘‘(I) TERMINATION DATE.—For purposes of this para-
graph, the term ‘termination date’ has the meaning given 
such term by section 856(c)(8).’’. 
(e) EFFECTIVE DATE.—The amendments made by this section 
shall apply to dispositions in taxable years beginning after the 
date of the enactment of this Act. 
SEC. 15316. QUALIFIED FORESTRY CONSERVATION BONDS. 
(a) IN GENERAL.—Part IV of subchapter A of chapter 1 (relating 
to credits against tax) is amended by adding at the end the following 
new subpart: 
‘‘Subpart I—Qualified Tax Credit Bonds 
‘‘Sec. 54A. Credit to holders of qualified tax credit bonds. 
‘‘Sec. 54B. Qualified forestry conservation bonds. 
‘‘SEC. 54A. CREDIT TO HOLDERS OF QUALIFIED TAX CREDIT BONDS. 
‘‘(a) ALLOWANCE OF CREDIT.—If a taxpayer holds a qualified 
tax credit bond on one or more credit allowance dates of the bond 
during any taxable year, there shall be allowed as a credit against 
the tax imposed by this chapter for the taxable year an amount 
equal to the sum of the credits determined under subsection (b) 
with respect to such dates. 
‘‘(b) AMOUNT OF CREDIT.— 
‘‘(1) IN GENERAL.—The amount of the credit determined 
under this subsection with respect to any credit allowance 
date for a qualified tax credit bond is 25 percent of the annual 
credit determined with respect to such bond. 
‘‘(2) ANNUAL CREDIT.—The annual credit determined with 
respect to any qualified tax credit bond is the product of— 
‘‘(A) the applicable credit rate, multiplied by 
‘‘(B) the outstanding face amount of the bond. 
‘‘(3) APPLICABLE CREDIT RATE.—For purposes of paragraph 
(2), the applicable credit rate is the rate which the Secretary 
estimates will permit the issuance of qualified tax credit bonds 
with a specified maturity or redemption date without discount 
and without interest cost to the qualified issuer. The applicable
H. R. 6124—618 
credit rate with respect to any qualified tax credit bond shall 
be determined as of the first day on which there is a binding, 
written contract for the sale or exchange of the bond. 
‘‘(4) SPECIAL RULE FOR ISSUANCE AND REDEMPTION.—In the 
case of a bond which is issued during the 3-month period 
ending on a credit allowance date, the amount of the credit 
determined under this subsection with respect to such credit 
allowance date shall be a ratable portion of the credit otherwise 
determined based on the portion of the 3-month period during 
which the bond is outstanding. A similar rule shall apply when 
the bond is redeemed or matures. 
‘‘(c) LIMITATION BASED ON AMOUNT OF TAX.— 
‘‘(1) IN GENERAL.—The credit allowed under subsection (a) 
for any taxable year shall not exceed the excess of— 
‘‘(A) the sum of the regular tax liability (as defined 
in section 26(b)) plus the tax imposed by section 55, over 
‘‘(B) the sum of the credits allowable under this part 
(other than subpart C and this subpart). 
‘‘(2) CARRYOVER OF UNUSED CREDIT.—If the credit allowable 
under subsection (a) exceeds the limitation imposed by para-
graph (1) for such taxable year, such excess shall be carried 
to the succeeding taxable year and added to the credit allowable 
under subsection (a) for such taxable year (determined before 
the application of paragraph (1) for such succeeding taxable 
year). 
‘‘(d) QUALIFIED TAX CREDIT BOND.—For purposes of this sec-
tion— 
‘‘(1) QUALIFIED TAX CREDIT BOND.—The term ‘qualified tax 
credit bond’ means a qualified forestry conservation bond which 
is part of an issue that meets the requirements of paragraphs 
(2), (3), (4), (5), and (6). 
‘‘(2) SPECIAL RULES RELATING TO EXPENDITURES.— 
‘‘(A) IN GENERAL.—An issue shall be treated as meeting 
the requirements of this paragraph if, as of the date of 
issuance, the issuer reasonably expects— 
‘‘(i) 100 percent or more of the available project 
proceeds to be spent for 1 or more qualified purposes 
within the 3-year period beginning on such date of 
issuance, and 
‘‘(ii) a binding commitment with a third party to 
spend at least 10 percent of such available project 
proceeds will be incurred within the 6-month period 
beginning on such date of issuance. 
‘‘(B) FAILURE TO SPEND REQUIRED AMOUNT OF BOND 
PROCEEDS WITHIN 3 YEARS.— 
‘‘(i) IN
GENERAL.—To the extent that less than 
100 percent of the available project proceeds of the 
issue are expended by the close of the expenditure 
period for 1 or more qualified purposes, the issuer 
shall redeem all of the nonqualified bonds within 90 
days after the end of such period. For purposes of 
this paragraph, the amount of the nonqualified bonds 
required to be redeemed shall be determined in the 
same manner as under section 142. 
‘‘(ii) EXPENDITURE PERIOD.—For purposes of this 
subpart, the term ‘expenditure period’ means, with 
respect to any issue, the 3-year period beginning on
H. R. 6124—619 
the date of issuance. Such term shall include any exten-
sion of such period under clause (iii). 
‘‘(iii) EXTENSION OF PERIOD.—Upon submission of 
a request prior to the expiration of the expenditure 
period (determined without regard to any extension 
under this clause), the Secretary may extend such 
period if the issuer establishes that the failure to 
expend the proceeds within the original expenditure 
period is due to reasonable cause and the expenditures 
for qualified purposes will continue to proceed with 
due diligence. 
‘‘(C) QUALIFIED PURPOSE.—For purposes of this para-
graph, the term ‘qualified purpose’ means a purpose speci-
fied in section 54B(e). 
‘‘(D) REIMBURSEMENT.—For purposes of this subtitle, 
available project proceeds of an issue shall be treated as 
spent for a qualified purpose if such proceeds are used 
to reimburse the issuer for amounts paid for a qualified 
purpose after the date that the Secretary makes an alloca-
tion of bond limitation with respect to such issue, but 
only if— 
‘‘(i) prior to the payment of the original expendi-
ture, the issuer declared its intent to reimburse such 
expenditure with the proceeds of a qualified tax credit 
bond, 
‘‘(ii) not later than 60 days after payment of the 
original expenditure, the issuer adopts an official intent 
to reimburse the original expenditure with such pro-
ceeds, and 
‘‘(iii) the reimbursement is made not later than 
18 months after the date the original expenditure is 
paid. 
‘‘(3) REPORTING.—An issue shall be treated as meeting 
the requirements of this paragraph if the issuer of qualified 
tax credit bonds submits reports similar to the reports required 
under section 149(e). 
‘‘(4) SPECIAL RULES RELATING TO ARBITRAGE.— 
‘‘(A) IN GENERAL.—An issue shall be treated as meeting 
the requirements of this paragraph if the issuer satisfies 
the requirements of section 148 with respect to the proceeds 
of the issue. 
‘‘(B) SPECIAL RULE FOR INVESTMENTS DURING EXPENDI-
TURE
PERIOD.—An issue shall not be treated as failing 
to meet the requirements of subparagraph (A) by reason 
of any investment of available project proceeds during the 
expenditure period. 
‘‘(C) SPECIAL RULE FOR RESERVE FUNDS.—An issue shall 
not be treated as failing to meet the requirements of 
subparagraph (A) by reason of any fund which is expected 
to be used to repay such issue if— 
‘‘(i) such fund is funded at a rate not more rapid 
than equal annual installments, 
‘‘(ii) such fund is funded in a manner reasonably 
expected to result in an amount not greater than an 
amount necessary to repay the issue, and
H. R. 6124—620 
‘‘(iii) the yield on such fund is not greater than 
the discount rate determined under paragraph (5)(B) 
with respect to the issue. 
‘‘(5) MATURITY LIMITATION.— 
‘‘(A) IN GENERAL.—An issue shall be treated as meeting 
the requirements of this paragraph if the maturity of any 
bond which is part of such issue does not exceed the max-
imum term determined by the Secretary under subpara-
graph (B). 
‘‘(B) MAXIMUM TERM.—During each calendar month, 
the Secretary shall determine the maximum term per-
mitted under this paragraph for bonds issued during the 
following calendar month. Such maximum term shall be 
the term which the Secretary estimates will result in the 
present value of the obligation to repay the principal on 
the bond being equal to 50 percent of the face amount 
of such bond. Such present value shall be determined using 
as a discount rate the average annual interest rate of 
tax-exempt obligations having a term of 10 years or more 
which are issued during the month. If the term as so 
determined is not a multiple of a whole year, such term 
shall be rounded to the next highest whole year. 
‘‘(6) PROHIBITION ON FINANCIAL CONFLICTS OF INTEREST.— 
An issue shall be treated as meeting the requirements of this 
paragraph if the issuer certifies that— 
‘‘(A) applicable State and local law requirements gov-
erning conflicts of interest are satisfied with respect to 
such issue, and 
‘‘(B) if the Secretary prescribes additional conflicts of 
interest rules governing the appropriate Members of Con-
gress, Federal, State, and local officials, and their spouses, 
such additional rules are satisfied with respect to such 
issue. 
‘‘(e) OTHER DEFINITIONS.—For purposes of this subchapter— 
‘‘(1) CREDIT ALLOWANCE DATE.—The term ‘credit allowance 
date’ means— 
‘‘(A) March 15, 
‘‘(B) June 15, 
‘‘(C) September 15, and 
‘‘(D) December 15. 
Such term includes the last day on which the bond is out-
standing. 
‘‘(2) BOND.—The term ‘bond’ includes any obligation. 
‘‘(3) STATE.—The term ‘State’ includes the District of 
Columbia and any possession of the United States. 
‘‘(4) AVAILABLE PROJECT PROCEEDS.—The term ‘available 
project proceeds’ means— 
‘‘(A) the excess of— 
‘‘(i) the proceeds from the sale of an issue, over 
‘‘(ii) the issuance costs financed by the issue (to 
the extent that such costs do not exceed 2 percent 
of such proceeds), and 
‘‘(B) the proceeds from any investment of the excess 
described in subparagraph (A). 
‘‘(f) CREDIT TREATED AS INTEREST.—For purposes of this sub-
title, the credit determined under subsection (a) shall be treated 
as interest which is includible in gross income.
H. R. 6124—621 
‘‘(g) S CORPORATIONS AND PARTNERSHIPS.—In the case of a 
tax credit bond held by an S corporation or partnership, the alloca-
tion of the credit allowed by this section to the shareholders of 
such corporation or partners of such partnership shall be treated 
as a distribution. 
‘‘(h) BONDS HELD BY REGULATED INVESTMENT COMPANIES AND 
REAL ESTATE INVESTMENT TRUSTS.—If any qualified tax credit bond 
is held by a regulated investment company or a real estate invest-
ment trust, the credit determined under subsection (a) shall be 
allowed to shareholders of such company or beneficiaries of such 
trust (and any gross income included under subsection (f) with 
respect to such credit shall be treated as distributed to such share-
holders or beneficiaries) under procedures prescribed by the Sec-
retary. 
‘‘(i) CREDITS MAY BE STRIPPED.—Under regulations prescribed 
by the Secretary— 
‘‘(1) IN GENERAL.—There may be a separation (including 
at issuance) of the ownership of a qualified tax credit bond 
and the entitlement to the credit under this section with respect 
to such bond. In case of any such separation, the credit under 
this section shall be allowed to the person who on the credit 
allowance date holds the instrument evidencing the entitlement 
to the credit and not to the holder of the bond. 
‘‘(2) CERTAIN RULES TO APPLY.—In the case of a separation 
described in paragraph (1), the rules of section 1286 shall 
apply to the qualified tax credit bond as if it were a stripped 
bond and to the credit under this section as if it were a 
stripped coupon. 
‘‘SEC. 54B. QUALIFIED FORESTRY CONSERVATION BONDS. 
‘‘(a) QUALIFIED FORESTRY CONSERVATION BOND.—For purposes 
of this subchapter, the term ‘qualified forestry conservation bond’ 
means any bond issued as part of an issue if— 
‘‘(1) 100 percent of the available project proceeds of such 
issue are to be used for one or more qualified forestry conserva-
tion purposes, 
‘‘(2) the bond is issued by a qualified issuer, and 
‘‘(3) the issuer designates such bond for purposes of this 
section. 
‘‘(b) LIMITATION ON AMOUNT OF BONDS DESIGNATED.—The max-
imum aggregate face amount of bonds which may be designated 
under subsection (a) by any issuer shall not exceed the limitation 
amount allocated to such issuer under subsection (d). 
‘‘(c) NATIONAL
LIMITATION
ON
AMOUNT
OF
BONDS
DES-
IGNATED.—There is a national qualified forestry conservation bond 
limitation of $500,000,000. 
‘‘(d) ALLOCATIONS.— 
‘‘(1) IN GENERAL.—The Secretary shall make allocations 
of the amount of the national qualified forestry conservation 
bond limitation described in subsection (c) among qualified 
forestry conservation purposes in such manner as the Secretary 
determines appropriate so as to ensure that all of such limita-
tion is allocated before the date which is 24 months after 
the date of the enactment of this section. 
‘‘(2) SOLICITATION OF APPLICATIONS.—The Secretary shall 
solicit applications for allocations of the national qualified for-
estry conservation bond limitation described in subsection (c)
H. R. 6124—622 
not later than 90 days after the date of the enactment of 
this section. 
‘‘(e) QUALIFIED FORESTRY CONSERVATION PURPOSE.—For pur-
poses of this section, the term ‘qualified forestry conservation pur-
pose’ means the acquisition by a State or any political subdivision 
or instrumentality thereof or a 501(c)(3) organization (as defined 
in section 150(a)(4)) from an unrelated person of forest and forest 
land that meets the following qualifications: 
‘‘(1) Some portion of the land acquired must be adjacent 
to United States Forest Service Land. 
‘‘(2) At least half of the land acquired must be transferred 
to the United States Forest Service at no net cost to the 
United States and not more than half of the land acquired 
may either remain with or be conveyed to a State. 
‘‘(3) All of the land must be subject to a native fish habitat 
conservation plan approved by the United States Fish and 
Wildlife Service. 
‘‘(4) The amount of acreage acquired must be at least 
40,000 acres. 
‘‘(f) QUALIFIED ISSUER.—For purposes of this section, the term 
‘qualified issuer’ means a State or any political subdivision or 
instrumentality thereof or a 501(c)(3) organization (as defined in 
section 150(a)(4)). 
‘‘(g) SPECIAL ARBITRAGE RULE.—In the case of any qualified 
forestry conservation bond issued as part of an issue, section 
54A(d)(4)(C) shall be applied to such issue without regard to clause 
(i). 
‘‘(h) ELECTION TO TREAT 50 PERCENT OF BOND ALLOCATION 
AS PAYMENT OF TAX.— 
‘‘(1) IN GENERAL.—If— 
‘‘(A) a qualified issuer receives an allocation of any 
portion of the national qualified forestry conservation bond 
limitation described in subsection (c), and 
‘‘(B) the qualified issuer elects the application of this 
subsection with respect to such allocation, 
then the qualified issuer (without regard to whether the issuer 
is subject to tax under this chapter) shall be treated as having 
made a payment against the tax imposed by this chapter, 
for the taxable year preceding the taxable year in which the 
allocation is received, in an amount equal to 50 percent of 
the amount of such allocation. 
‘‘(2) TREATMENT OF DEEMED PAYMENT.— 
‘‘(A) IN GENERAL.—Notwithstanding any other provi-
sion of this title, the Secretary shall not use the payment 
of tax described in paragraph (1) as an offset or credit 
against any tax liability of the qualified issuer but shall 
refund such payment to such issuer. 
‘‘(B) NO INTEREST.—Except as provided in paragraph 
(3)(A), the payment described in paragraph (1) shall not 
be taken into account in determining any amount of 
interest under this title. 
‘‘(3) REQUIREMENT FOR, AND EFFECT OF, ELECTION.— 
‘‘(A) REQUIREMENT.—No election under this subsection 
shall take effect unless the qualified issuer certifies to 
the Secretary that any payment of tax refunded to the 
issuer under this subsection will be used exclusively for 
1 or more qualified forestry conservation purposes. If the
H. R. 6124—623 
qualified issuer fails to use any portion of such payment 
for such purpose, the issuer shall be liable to the United 
States in an amount equal to such portion, plus interest 
at the overpayment rate under section 6621 for the period 
from the date such portion was refunded to the date such 
amount is paid. Any such amount shall be assessed and 
collected in the same manner as tax imposed by this 
chapter, except that subchapter B of chapter 63 (relating 
to deficiency procedures) shall not apply in respect of such 
assessment or collection. 
‘‘(B) EFFECT OF ELECTION ON ALLOCATION.—If a quali-
fied issuer makes the election under this subsection with 
respect to any allocation— 
‘‘(i) the issuer may issue no bonds pursuant to 
the allocation, and 
‘‘(ii) the Secretary may not reallocate such alloca-
tion for any other purpose.’’. 
(b) REPORTING.—Subsection (d) of section 6049 (relating to 
returns regarding payments of interest) is amended by adding at 
the end the following new paragraph: 
‘‘(9) REPORTING
OF
CREDIT
ON
QUALIFIED
TAX
CREDIT 
BONDS.— 
‘‘(A) IN GENERAL.—For purposes of subsection (a), the 
term ‘interest’ includes amounts includible in gross income 
under section 54A and such amounts shall be treated as 
paid on the credit allowance date (as defined in section 
54A(e)(1)). 
‘‘(B) REPORTING
TO
CORPORATIONS, ETC.—Except as 
otherwise provided in regulations, in the case of any 
interest described in subparagraph (A) of this paragraph, 
subsection (b)(4) of this section shall be applied without 
regard to subparagraphs (A), (H), (I), (J), (K), and (L)(i). 
‘‘(C) REGULATORY AUTHORITY.—The Secretary may pre-
scribe such regulations as are necessary or appropriate 
to carry out the purposes of this paragraph, including regu-
lations which require more frequent or more detailed 
reporting.’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Sections 54(c)(2) and 1400N(l)(3)(B) are each amended 
by striking ‘‘subpart C’’ and inserting ‘‘subparts C and I’’. 
(2) Section 1397E(c)(2) is amended by striking ‘‘subpart 
H’’ and inserting ‘‘subparts H and I’’. 
(3) Section 6401(b)(1) is amended by striking ‘‘and H’’ and 
inserting ‘‘H, and I’’. 
(4) The heading of subpart H of part IV of subchapter 
A of chapter 1 is amended by striking ‘‘Certain Bonds’’ and 
inserting ‘‘Clean Renewable Energy Bonds’’. 
(5) The table of subparts for part IV of subchapter A 
of chapter 1 is amended by striking the item relating to subpart 
H and inserting the following new items: 
‘‘SUBPART H. NONREFUNDABLE CREDIT TO HOLDERS OF CLEAN RENEWABLE ENERGY 
BONDS. 
‘‘SUBPART I. QUALIFIED TAX CREDIT BONDS.’’. 
(6) Paragraph (2) of section 1324(b) of title 31, United 
States Code, is amended by striking ‘‘or 6428 or 53(e)’’ and 
inserting ‘‘, 53(e), 54B(h), or 6428’’.
H. R. 6124—624 
(d) EFFECTIVE DATES.—The amendments made by this section 
shall apply to obligations issued after the date of the enactment 
of this Act. 
PART II—ENERGY PROVISIONS 
Subpart A—Cellulosic Biofuel 
SEC. 15321. CREDIT FOR PRODUCTION OF CELLULOSIC BIOFUEL. 
(a) IN GENERAL.—Subsection (a) of section 40 (relating to 
alcohol used as fuel) is amended by striking ‘‘plus’’ at the end 
of paragraph (1), by striking ‘‘plus’’ at the end of paragraph (2), 
by striking the period at the end of paragraph (3) and inserting 
‘‘, plus’’, and by adding at the end the following new paragraph: 
‘‘(4) the cellulosic biofuel producer credit.’’. 
(b) CELLULOSIC BIOFUEL PRODUCER CREDIT.— 
(1) IN GENERAL.—Subsection (b) of section 40 is amended 
by adding at the end the following new paragraph: 
‘‘(6) CELLULOSIC BIOFUEL PRODUCER CREDIT.— 
‘‘(A) IN GENERAL.—The cellulosic biofuel producer credit 
of any taxpayer is an amount equal to the applicable 
amount for each gallon of qualified cellulosic biofuel produc-
tion. 
‘‘(B) APPLICABLE AMOUNT.—For purposes of subpara-
graph (A), the applicable amount means $1.01, except that 
such amount shall, in the case of cellulosic biofuel which 
is alcohol, be reduced by the sum of— 
‘‘(i) the amount of the credit in effect for such 
alcohol under subsection (b)(1) (without regard to sub-
section (b)(3)) at the time of the qualified cellulosic 
biofuel production, plus 
‘‘(ii) in the case of ethanol, the amount of the 
credit in effect under subsection (b)(4) at the time 
of such production. 
‘‘(C) QUALIFIED CELLULOSIC BIOFUEL PRODUCTION.—For 
purposes of this section, the term ‘qualified cellulosic biofuel 
production’ means any cellulosic biofuel which is produced 
by the taxpayer, and which during the taxable year— 
‘‘(i) is sold by the taxpayer to another person— 
‘‘(I) for use by such other person in the produc-
tion of a qualified cellulosic biofuel mixture in 
such other person’s trade or business (other than 
casual off-farm production), 
‘‘(II) for use by such other person as a fuel 
in a trade or business, or 
‘‘(III) who sells such cellulosic biofuel at retail 
to another person and places such cellulosic biofuel 
in the fuel tank of such other person, or 
‘‘(ii) is used or sold by the taxpayer for any purpose 
described in clause (i). 
The qualified cellulosic biofuel production of any taxpayer 
for any taxable year shall not include any alcohol which 
is purchased by the taxpayer and with respect to which 
such producer increases the proof of the alcohol by addi-
tional distillation. 
‘‘(D) QUALIFIED
CELLULOSIC
BIOFUEL
MIXTURE.—For 
purposes of this paragraph, the term ‘qualified cellulosic
H. R. 6124—625 
biofuel mixture’ means a mixture of cellulosic biofuel and 
gasoline or of cellulosic biofuel and a special fuel which— 
‘‘(i) is sold by the person producing such mixture 
to any person for use as a fuel, or 
‘‘(ii) is used as a fuel by the person producing 
such mixture. 
‘‘(E) CELLULOSIC BIOFUEL.—For purposes of this para-
graph— 
‘‘(i) IN
GENERAL.—The term ‘cellulosic biofuel’ 
means any liquid fuel which— 
‘‘(I) is produced from any lignocellulosic or 
hemicellulosic matter that is available on a renew-
able or recurring basis, and 
‘‘(II) meets the registration requirements for 
fuels and fuel additives established by the Environ-
mental Protection Agency under section 211 of the 
Clean Air Act (42 U.S.C. 7545). 
‘‘(ii) EXCLUSION
OF
LOW-PROOF
ALCOHOL.—Such 
term shall not include any alcohol with a proof of 
less than 150. The determination of the proof of any 
alcohol shall be made without regard to any added 
denaturants. 
‘‘(F) ALLOCATION
OF
CELLULOSIC
BIOFUEL
PRODUCER 
CREDIT TO PATRONS OF COOPERATIVE.—Rules similar to the 
rules under subsection (g)(6) shall apply for purposes of 
this paragraph. 
‘‘(G) REGISTRATION REQUIREMENT.—No credit shall be 
determined under this paragraph with respect to any tax-
payer unless such taxpayer is registered with the Secretary 
as a producer of cellulosic biofuel under section 4101. 
‘‘(H) APPLICATION
OF
PARAGRAPH.—This paragraph 
shall apply with respect to qualified cellulosic biofuel 
production after December 31, 2008, and before January 
1, 2013.’’. 
(2) TERMINATION DATE NOT TO APPLY.—Subsection (e) of 
section 40 (relating to termination) is amended— 
(A) by inserting ‘‘or subsection (b)(6)(H)’’ after ‘‘by rea-
son of paragraph (1)’’ in paragraph (2), and 
(B) by adding at the end the following new paragraph: 
‘‘(3) EXCEPTION
FOR
CELLULOSIC
BIOFUEL
PRODUCER 
CREDIT.—Paragraph (1) shall not apply to the portion of the 
credit allowed under this section by reason of subsection (a)(4).’’. 
(3) CONFORMING AMENDMENTS.— 
(A) Paragraph (1) of section 4101(a) is amended— 
(i) by striking ‘‘and every person’’ and inserting 
‘‘, every person’’, and 
(ii) by inserting ‘‘, and every person producing 
cellulosic biofuel (as defined in section 40(b)(6)(E))’’ 
after ‘‘section 6426(b)(4)(A))’’. 
(B) The heading of section 40, and the item relating 
to such section in the table of sections for subpart D of 
part IV of subchapter A of chapter 1, are each amended 
by inserting ‘‘, etc.,’’ after ‘‘Alcohol’’. 
(c) BIOFUEL NOT USED AS A FUEL, ETC.— 
(1) IN GENERAL.—Paragraph (3) of section 40(d) is amended 
by redesignating subparagraph (D) as subparagraph (E) and
H. R. 6124—626 
by inserting after subparagraph (C) the following new subpara-
graph: 
‘‘(D) CELLULOSIC BIOFUEL PRODUCER CREDIT.—If— 
‘‘(i) any credit is allowed under subsection (a)(4), 
and 
‘‘(ii) any person does not use such fuel for a purpose 
described in subsection (b)(6)(C), 
then there is hereby imposed on such person a tax equal 
to the applicable amount (as defined in subsection (b)(6)(B)) 
for each gallon of such cellulosic biofuel.’’. 
(2) CONFORMING AMENDMENTS.— 
(A) Subparagraph (C) of section 40(d)(3) is amended 
by striking ‘‘PRODUCER’’ in the heading and inserting 
‘‘SMALL ETHANOL PRODUCER’’. 
(B) Subparagraph (E) of section 40(d)(3), as redesig-
nated by paragraph (1), is amended by striking ‘‘or (C)’’ 
and inserting ‘‘(C), or (D)’’. 
(d) BIOFUEL PRODUCED IN THE UNITED STATES.—Section 40(d) 
is amended by adding at the end the following new paragraph: 
‘‘(6) SPECIAL
RULE
FOR
CELLULOSIC
BIOFUEL
PRODUCER 
CREDIT.—No cellulosic biofuel producer credit shall be deter-
mined under subsection (a) with respect to any cellulosic biofuel 
unless such cellulosic biofuel is produced in the United States 
and used as a fuel in the United States. For purposes of 
this subsection, the term ‘United States’ includes any possession 
of the United States.’’. 
(e) WAIVER OF CREDIT LIMIT FOR CELLULOSIC BIOFUEL PRODUC-
TION
BY
SMALL
ETHANOL
PRODUCERS.—Section 40(b)(4)(C) is 
amended by inserting ‘‘(determined without regard to any qualified 
cellulosic biofuel production)’’ after ‘‘15,000,000 gallons’’. 
(f) DENIAL OF DOUBLE BENEFIT.— 
(1) BIODIESEL.—Paragraph (1) of section 40A(d) is amended 
by adding at the end the following new flush sentence: 
‘‘Such term shall not include any liquid with respect to which 
a credit may be determined under section 40.’’. 
(2) RENEWABLE DIESEL.—Paragraph (3) of section 40A(f) 
is amended by adding at the end the following new flush 
sentence: 
‘‘Such term shall not include any liquid with respect to which 
a credit may be determined under section 40.’’. 
(g) EFFECTIVE DATE.—The amendments made by this section 
shall apply to fuel produced after December 31, 2008. 
SEC. 15322. COMPREHENSIVE STUDY OF BIOFUELS. 
(a) STUDY.—The Secretary of the Treasury, in consultation 
with the Secretary of Agriculture, the Secretary of Energy, and 
the Administrator of the Environmental Protection Agency, shall 
enter into an agreement with the National Academy of Sciences 
to produce an analysis of current scientific findings to determine— 
(1) current biofuels production, as well as projections for 
future production, 
(2) the maximum amount of biofuels production capable 
in United States forests and farmlands, including the current 
quantities and character of the feedstocks and including such 
information as regional forest inventories that are commercially 
available, used in the production of biofuels,
H. R. 6124—627 
(3) the domestic effects of an increase in biofuels production 
levels, including the effects of such levels on— 
(A) the price of fuel, 
(B) the price of land in rural and suburban commu-
nities, 
(C) crop acreage, forest acreage, and other land use, 
(D) the environment, due to changes in crop acreage, 
fertilizer use, runoff, water use, emissions from vehicles 
utilizing biofuels, and other factors, 
(E) the price of feed, 
(F) the selling price of grain crops and forest products, 
(G) exports and imports of grains and forest products, 
(H) taxpayers, through cost or savings to commodity 
crop payments, and 
(I) the expansion of refinery capacity, 
(4) the ability to convert corn ethanol plants for other 
uses, such as cellulosic ethanol or biodiesel, 
(5) a comparative analysis of corn ethanol versus other 
biofuels and renewable energy sources, considering cost, energy 
output, and ease of implementation, 
(6) the impact of the tax credit established by this subpart 
on the regional agricultural and silvicultural capabilities of 
commercially available forest inventories, and 
(7) the need for additional scientific inquiry, and specific 
areas of interest for future research. 
(b) REPORT.—The Secretary of the Treasury shall submit an 
initial report of the findings of the study required under subsection 
(a) to Congress not later than 6 months after the date of the 
enactment of this Act (36 months after such date in the case 
of the information required by subsection (a)(6)), and a final report 
not later than 12 months after such date (42 months after such 
date in the case of the information required by subsection (a)(6)). 
Subpart B—Revenue Provisions 
SEC. 15331. MODIFICATION OF ALCOHOL CREDIT. 
(a) INCOME TAX CREDIT.— 
(1) IN GENERAL.—The table in paragraph (2) of section 
40(h) is amended— 
(A) by striking ‘‘through 2010’’ in the first column 
and inserting ‘‘, 2006, 2007, or 2008’’, 
(B) by striking the period at the end of the third 
row, and 
(C) by adding at the end the following new row: 
‘‘2009 through 2010
45 cents ....................
33.33 cents.’’. 
(2) EXCEPTION.—Section 40(h) is amended by adding at 
the end the following new paragraph: 
‘‘(3) REDUCTION DELAYED UNTIL ANNUAL PRODUCTION OR 
IMPORTATION OF 7,500,000,000 GALLONS.— 
‘‘(A) IN GENERAL.—In the case of any calendar year 
beginning after 2008, if the Secretary makes a determina-
tion described in subparagraph (B) with respect to all pre-
ceding calendar years beginning after 2007, the last row 
in the table in paragraph (2) shall be applied by sub-
stituting ‘51 cents’ for ‘45 cents’.
H. R. 6124—628 
‘‘(B) DETERMINATION.—A determination described in 
this subparagraph with respect to any calendar year is 
a determination, in consultation with the Administrator 
of the Environmental Protection Agency, that an amount 
less than 7,500,000,000 gallons of ethanol (including cel-
lulosic ethanol) has been produced in or imported into 
the United States in such year.’’. 
(b) EXCISE TAX CREDIT.— 
(1) IN GENERAL.—Subparagraph (A) of section 6426(b)(2) 
(relating to alcohol fuel mixture credit) is amended by striking 
‘‘the applicable amount is 51 cents’’ and inserting ‘‘the 
applicable amount is— 
‘‘(i) in the case of calendar years beginning before 
2009, 51 cents, and 
‘‘(ii) in the case of calendar years beginning after 
2008, 45 cents.’’. 
(2) EXCEPTION.—Paragraph (2) of section 6426(b) is 
amended by adding at the end the following new subparagraph: 
‘‘(C) REDUCTION DELAYED UNTIL ANNUAL PRODUCTION 
OR IMPORTATION OF 7,500,000,000 GALLONS.—In the case of 
any calendar year beginning after 2008, if the Secretary 
makes a determination described in section 40(h)(3)(B) with 
respect to all preceding calendar years beginning after 
2007, subparagraph (A)(ii) shall be applied by substituting 
‘51 cents’ for ‘45 cents’.’’ 
(3) CONFORMING AMENDMENT.—Subparagraph (A) of section 
6426(b)(2) is amended by striking ‘‘subparagraph (B)’’ and 
inserting ‘‘subparagraphs (B) and (C)’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall take effect on the date of the enactment of this Act. 
SEC. 15332. CALCULATION OF VOLUME OF ALCOHOL FOR FUEL 
CREDITS. 
(a) IN GENERAL.—Paragraph (4) of section 40(d) (relating to 
volume of alcohol) is amended by striking ‘‘5 percent’’ and inserting 
‘‘2 percent’’. 
(b) CONFORMING AMENDMENT FOR EXCISE TAX CREDIT.—Section 
6426(b) (relating to alcohol fuel mixture credit) is amended by 
redesignating paragraph (5) as paragraph (6) and by inserting 
after paragraph (4) the following new paragraph: 
‘‘(5) VOLUME OF ALCOHOL.—For purposes of determining 
under subsection (a) the number of gallons of alcohol with 
respect to which a credit is allowable under subsection (a), 
the volume of alcohol shall include the volume of any dena-
turant (including gasoline) which is added under any formulas 
approved by the Secretary to the extent that such denaturants 
do not exceed 2 percent of the volume of such alcohol (including 
denaturants).’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to fuel sold or used after December 31, 2008. 
SEC. 15333. ETHANOL TARIFF EXTENSION. 
Headings 9901.00.50 and 9901.00.52 of the Harmonized Tariff 
Schedule of the United States are each amended in the effective 
period column by striking ‘‘1/1/2009’’ and inserting ‘‘1/1/2011’’.
H. R. 6124—629 
SEC. 15334. LIMITATIONS ON DUTY DRAWBACK ON CERTAIN IMPORTED 
ETHANOL. 
(a) IN GENERAL.—Section 313(p) of the Tariff Act of 1930 (19 
U.S.C. 1313(p)) is amended by adding at the end the following 
new paragraph: 
‘‘(5) SPECIAL
RULES
FOR
ETHYL
ALCOHOL.—For purposes 
of this subsection, any duty paid under subheading 9901.00.50 
of the Harmonized Tariff Schedule of the United States on 
imports of ethyl alcohol or a mixture of ethyl alcohol may 
not be refunded if the exported article upon which a drawback 
claim is based does not contain ethyl alcohol or a mixture 
of ethyl alcohol.’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
applies with respect to— 
(1) imports of ethyl alcohol or a mixture of ethyl alcohol 
entered for consumption, or withdrawn from warehouse for 
consumption, on or after October 1, 2008; and 
(2) imports of ethyl alcohol or a mixture of ethyl alcohol 
entered for consumption, or withdrawn from warehouse for 
consumption, before October 1, 2008, if a duty drawback claim 
is filed with respect to such imports on or after October 1, 
2010. 
PART III—AGRICULTURAL PROVISIONS 
SEC. 15341. INCREASE IN LOAN LIMITS ON AGRICULTURAL BONDS. 
(a) IN
GENERAL.—Subparagraph (A) of section 147(c)(2) 
(relating to exception for first-time farmers) is amended by striking 
‘‘$250,000’’ and inserting ‘‘$450,000’’. 
(b) INFLATION ADJUSTMENT.—Section 147(c)(2) is amended by 
adding at the end the following new subparagraph: 
‘‘(H) ADJUSTMENTS FOR INFLATION.—In the case of any 
calendar year after 2008, the dollar amount in subpara-
graph (A) shall be increased by an amount equal to— 
‘‘(i) such dollar amount, multiplied by 
‘‘(ii) the cost-of-living adjustment determined 
under section 1(f)(3) for the calendar year, determined 
by substituting ‘calendar year 2007’ for ‘calendar year 
1992’ in subparagraph (B) thereof. 
If any amount as increased under the preceding sentence 
is not a multiple of $100, such amount shall be rounded 
to the nearest multiple of $100.’’. 
(c) MODIFICATION
OF SUBSTANTIAL FARMLAND DEFINITION.— 
Section 147(c)(2)(E) (defining substantial farmland) is amended by 
striking ‘‘unless’’ and all that follows through the period and 
inserting ‘‘unless such parcel is smaller than 30 percent of the 
median size of a farm in the county in which such parcel is located.’’. 
(d) CONFORMING
AMENDMENT.—Section 147(c)(2)(C)(i)(II) is 
amended by striking ‘‘$250,000’’ and inserting ‘‘the amount in effect 
under subparagraph (A)’’. 
(e) EFFECTIVE DATE.—The amendments made by this section 
shall apply to bonds issued after the date of the enactment of 
this Act.
H. R. 6124—630 
SEC. 
15342. 
ALLOWANCE 
OF 
SECTION 
1031 
TREATMENT 
FOR 
EXCHANGES INVOLVING CERTAIN MUTUAL DITCH, RES-
ERVOIR, OR IRRIGATION COMPANY STOCK. 
(a) IN GENERAL.—Section 1031 (relating to exchange of property 
held for productive use or investment) is amended by adding at 
the end the following new subsection: 
‘‘(i) SPECIAL RULES FOR MUTUAL DITCH, RESERVOIR, OR IRRIGA-
TION COMPANY STOCK.—For purposes of subsection (a)(2)(B), the 
term ‘stocks’ shall not include shares in a mutual ditch, reservoir, 
or irrigation company if at the time of the exchange— 
‘‘(1) the mutual ditch, reservoir, or irrigation company is 
an organization described in section 501(c)(12)(A) (determined 
without regard to the percentage of its income that is collected 
from its members for the purpose of meeting losses and 
expenses), and 
‘‘(2) the shares in such company have been recognized 
by the highest court of the State in which such company was 
organized or by applicable State statute as constituting or 
representing real property or an interest in real property.’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to exchanges completed after the date of the enactment 
of this Act. 
SEC. 15343. AGRICULTURAL CHEMICALS SECURITY CREDIT. 
(a) IN GENERAL.—Subpart D of part IV of subchapter A of 
chapter 1 (relating to business related credits) is amended by adding 
at the end the following new section: 
‘‘SEC. 45O. AGRICULTURAL CHEMICALS SECURITY CREDIT. 
‘‘(a) IN GENERAL.—For purposes of section 38, in the case of 
an eligible agricultural business, the agricultural chemicals security 
credit determined under this section for the taxable year is 30 
percent of the qualified security expenditures for the taxable year. 
‘‘(b) FACILITY LIMITATION.—The amount of the credit deter-
mined under subsection (a) with respect to any facility for any 
taxable year shall not exceed— 
‘‘(1) $100,000, reduced by 
‘‘(2) the aggregate amount of credits determined under 
subsection (a) with respect to such facility for the 5 prior 
taxable years. 
‘‘(c) ANNUAL LIMITATION.—The amount of the credit determined 
under subsection (a) with respect to any taxpayer for any taxable 
year shall not exceed $2,000,000. 
‘‘(d) QUALIFIED CHEMICAL SECURITY EXPENDITURE.—For pur-
poses of this section, the term ‘qualified chemical security expendi-
ture’ means, with respect to any eligible agricultural business for 
any taxable year, any amount paid or incurred by such business 
during such taxable year for— 
‘‘(1) employee security training and background checks, 
‘‘(2) limitation and prevention of access to controls of speci-
fied agricultural chemicals stored at the facility, 
‘‘(3) tagging, locking tank valves, and chemical additives 
to prevent the theft of specified agricultural chemicals or to 
render such chemicals unfit for illegal use, 
‘‘(4) protection of the perimeter of specified agricultural 
chemicals,
H. R. 6124—631 
‘‘(5) installation of security lighting, cameras, recording 
equipment, and intrusion detection sensors, 
‘‘(6) implementation of measures to increase computer or 
computer network security, 
‘‘(7) conducting a security vulnerability assessment, 
‘‘(8) implementing a site security plan, and 
‘‘(9) such other measures for the protection of specified 
agricultural chemicals as the Secretary may identify in regula-
tion. 
Amounts described in the preceding sentence shall be taken into 
account only to the extent that such amounts are paid or incurred 
for the purpose of protecting specified agricultural chemicals. 
‘‘(e) ELIGIBLE AGRICULTURAL BUSINESS.—For purposes of this 
section, the term ‘eligible agricultural business’ means any person 
in the trade or business of— 
‘‘(1) selling agricultural products, including specified agri-
cultural chemicals, at retail predominantly to farmers and 
ranchers, or 
‘‘(2) manufacturing, formulating, distributing, or aerially 
applying specified agricultural chemicals. 
‘‘(f) SPECIFIED AGRICULTURAL CHEMICAL.—For purposes of this 
section, the term ‘specified agricultural chemical’ means— 
‘‘(1) any fertilizer commonly used in agricultural operations 
which is listed under— 
‘‘(A) section 302(a)(2) of the Emergency Planning and 
Community Right-to-Know Act of 1986, 
‘‘(B) section 101 of part 172 of title 49, Code of Federal 
Regulations, or 
‘‘(C) part 126, 127, or 154 of title 33, Code of Federal 
Regulations, and 
‘‘(2) any pesticide (as defined in section 2(u) of the Federal 
Insecticide, Fungicide, and Rodenticide Act), including all active 
and inert ingredients thereof, which is customarily used on 
crops grown for food, feed, or fiber. 
‘‘(g) CONTROLLED GROUPS.—Rules similar to the rules of para-
graphs (1) and (2) of section 41(f) shall apply for purposes of 
this section. 
‘‘(h) REGULATIONS.—The Secretary may prescribe such regula-
tions as may be necessary or appropriate to carry out the purposes 
of this section, including regulations which— 
‘‘(1) provide for the proper treatment of amounts which 
are paid or incurred for purpose of protecting any specified 
agricultural chemical and for other purposes, and 
‘‘(2) provide for the treatment of related properties as one 
facility for purposes of subsection (b). 
‘‘(i) TERMINATION.—This section shall not apply to any amount 
paid or incurred after December 31, 2012.’’. 
(b) CREDIT ALLOWED AS PART OF GENERAL BUSINESS CREDIT.— 
Section 38(b) is amended by striking ‘‘plus’’ at the end of paragraph 
(30), by striking the period at the end of paragraph (31) and 
inserting ‘‘, plus’’, and by adding at the end the following new 
paragraph: 
‘‘(32) in the case of an eligible agricultural business (as 
defined in section 45O(e)), the agricultural chemicals security 
credit determined under section 45O(a).’’. 
(c) DENIAL
OF DOUBLE BENEFIT.—Section 280C is amended 
by adding at the end the following new subsection:
H. R. 6124—632 
‘‘(f) CREDIT FOR SECURITY OF AGRICULTURAL CHEMICALS.—No 
deduction shall be allowed for that portion of the expenses otherwise 
allowable as a deduction taken into account in determining the 
credit under section 45O for the taxable year which is equal to 
the amount of the credit determined for such taxable year under 
section 45O(a).’’. 
(d) CLERICAL AMENDMENT.—The table of sections for subpart 
D of part IV of subchapter A of chapter 1 is amended by adding 
at the end the following new item: 
‘‘Sec. 45O. Agricultural chemicals security credit.’’. 
(e) EFFECTIVE DATE.—The amendments made by this section 
shall apply to amounts paid or incurred after the date of the 
enactment of this Act. 
SEC. 15344. 3-YEAR DEPRECIATION FOR RACE HORSES THAT ARE 2- 
YEARS OLD OR YOUNGER. 
(a) IN GENERAL.—Clause (i) of section 168(e)(3)(A) (relating 
to 3-year property) is amended to read as follows: 
‘‘(i) any race horse— 
‘‘(I) which is placed in service before January 
1, 2014, and 
‘‘(II) which is placed in service after December 
31, 2013, and which is more than 2 years old 
at the time such horse is placed in service by 
such purchaser,’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to property placed in service after December 31, 2008. 
SEC. 15345. TEMPORARY TAX RELIEF FOR KIOWA COUNTY, KANSAS 
AND SURROUNDING AREA. 
(a) IN GENERAL.—Subject to the modifications described in this 
section, the following provisions of or relating to the Internal Rev-
enue Code of 1986 shall apply to the Kansas disaster area in 
addition to the areas to which such provisions otherwise apply: 
(1) Section 1400N(d) of such Code (relating to special allow-
ance for certain property). 
(2) Section 1400N(e) of such Code (relating to increase 
in expensing under section 179). 
(3) Section 1400N(f) of such Code (relating to expensing 
for certain demolition and clean-up costs). 
(4) Section 1400N(k) of such Code (relating to treatment 
of net operating losses attributable to storm losses). 
(5) Section 1400N(n) of such Code (relating to treatment 
of representations regarding income eligibility for purposes of 
qualified rental project requirements). 
(6) Section 1400N(o) of such Code (relating to treatment 
of public utility property disaster losses). 
(7) Section 1400Q of such Code (relating to special rules 
for use of retirement funds). 
(8) Section 1400R(a) of such Code (relating to employee 
retention credit for employers). 
(9) Section 1400S(b) of such Code (relating to suspension 
of certain limitations on personal casualty losses). 
(10) Section 405 of the Katrina Emergency Tax Relief Act 
of 2005 (relating to extension of replacement period for non-
recognition of gain).