H. R. 2854—146
(7) 
The 
cooperative 
development, 
financing, 
and
implementation of a coordinated national program of research,
promotion, and information regarding agricultural commodities
are necessary to maintain and expand existing markets and
to develop new markets for these commodities.
(8) Agricultural commodities move in interstate and foreign
commerce, and agricultural commodities and their products
that do not move in such channels of commerce directly burden
or affect interstate commerce in agricultural commodities and
their products.
(9) Commodity promotion programs have the ability to
provide significant conservation benefits to producers and the
public.
(b) PURPOSE.—The purpose of this subtitle is to authorize the
establishment, through the exercise by the Secretary of Agriculture
of the authority provided in this subtitle, of an orderly program
for developing, financing, and carrying out an effective, continuous,
and coordinated program of generic promotion, research, and
information regarding agricultural commodities designed to—
(1) strengthen the position of agricultural commodity indus-
tries in the marketplace;
(2) maintain and expand existing domestic and foreign
markets and uses for agricultural commodities;
(3) develop new markets and uses for agricultural commod-
ities; or
(4) assist producers in meeting their conservation objec-
tives.
(c) RULE OF CONSTRUCTION.—Nothing in this subtitle provides
for the control of production or otherwise limits the right of any
person to produce, handle, or import an agricultural commodity.
SEC. 513. DEFINITIONS.
In this subtitle (unless the context otherwise requires):
(1) AGRICULTURAL
COMMODITY.—The term ‘‘agricultural
commodity’’ means—
(A) agricultural, horticultural, viticultural, and dairy
products;
(B) livestock and the products of livestock;
(C) the products of poultry and bee raising;
(D) the products of forestry;
(E) other commodities raised or produced on farms,
as determined appropriate by the Secretary; and
(F) products processed or manufactured from products
specified in the preceding subparagraphs, as determined
appropriate by the Secretary.
(2) BOARD.—The term ‘‘board’’ means a board established
under an order issued under section 514.
(3) CONFLICT OF INTEREST.—The term ‘‘conflict of interest’’
means a situation in which a member or employee of a board
has a direct or indirect financial interest in a person that
performs a service for, or enters into a contract with, a board
for anything of economic value.
(4) DEPARTMENT.—The term ‘‘Department’’ means the
Department of Agriculture.
(5) FIRST HANDLER.—The term ‘‘first handler’’ means the
first person who buys or takes possession of an agricultural
commodity from a producer for marketing. If a producer mar-
H. R. 2854—147
kets the agricultural commodity directly to consumers, the pro-
ducer shall be considered to be the first handler with respect
to the agricultural commodity produced by the producer.
(6) IMPORTER.—The term ‘‘importer’’ means any person who
imports an agricultural commodity from outside the United
States for sale in the United States as a principal or as an
agent, broker, or consignee of any person.
(7) INFORMATION.—The term ‘‘information’’ means informa-
tion and programs that are designed to increase—
(A) efficiency in processing; and
(B) the development of new markets, marketing strate-
gies, increased marketing efficiency, and activities to
enhance the image of agricultural commodities on a
national or international basis.
(8) MARKET.—The term ‘‘market’’ means to sell or to other-
wise dispose of an agricultural commodity in interstate, foreign,
or intrastate commerce.
(9) ORDER.—The term ‘‘order’’ means an order issued by
the Secretary under section 514 that provides for a program
of generic promotion, research, and information regarding agri-
cultural commodities designed to—
(A) strengthen the position of agricultural commodity
industries in the marketplace;
(B) maintain and expand existing domestic and foreign
markets and uses for agricultural commodities;
(C) develop new markets and uses for agricultural
commodities; or
(D) assist producers in meeting their conservation
objectives.
(10) PERSON.—The term ‘‘person’’ means any individual,
group of individuals, partnership, corporation, association,
cooperative, or any other legal entity.
(11) PRODUCER.—The term ‘‘producer’’ means any person
who is engaged in the production and sale of an agricultural
commodity in the United States and who owns, or shares the
ownership and risk of loss of, the agricultural commodity.
(12) PROMOTION.—The term ‘‘promotion’’ means any action
taken by a board under an order, including paid advertising,
to present a favorable image of an agricultural commodity
to the public to improve the competitive position of the agricul-
tural commodity in the marketplace and to stimulate sales
of the agricultural commodity.
(13) RESEARCH.—The term ‘‘research’’ means any type of
test, study, or analysis designed to advance the image, desirabil-
ity, use, marketability, production, product development, or
quality of an agricultural commodity.
(14) SECRETARY.—The term ‘‘Secretary’’ means the Sec-
retary of Agriculture.
(15) STATE.—The term ‘‘State’’ means any of the States,
the District of Columbia, the Commonwealth of Puerto Rico,
or any territory or possession of the United States.
(16) SUSPEND.—The term ‘‘suspend’’ means to issue a rule
under section 553 of title 5, United States Code, to temporarily
prevent the operation of an order during a particular period
of time specified in the rule.
(17) TERMINATE.—The term ‘‘terminate’’ means to issue
a rule under section 553 of title 5, United States Code, to
H. R. 2854—148
cancel permanently the operation of an order beginning on
a date certain specified in the rule.
(18) UNITED
STATES.—The term ‘‘United States’’ means
collectively the 50 States, the District of Columbia, the
Commonwealth of Puerto Rico and the territories and posses-
sions of the United States.
SEC. 514. ISSUANCE OF ORDERS.
(a) ISSUANCE AUTHORIZED.—
(1) IN GENERAL.—To effectuate the purpose of this subtitle,
the Secretary may issue, and amend from time to time, orders
applicable to—
(A) the producers of an agricultural commodity;
(B) the first handlers of the agricultural commodity
and other persons in the marketing chain as appropriate;
and
(C) the importers of the agricultural commodity, if
imports of the agricultural commodity are subject to assess-
ment under section 516(f).
(2) NATIONAL SCOPE.—Each order issued under this section
shall be national in scope.
(b) PROCEDURE FOR ISSUANCE.—
(1) DEVELOPMENT OR RECEIPT OF PROPOSED ORDER.—A pro-
posed order with respect to an agricultural commodity may
be—
(A) prepared by the Secretary at any time; or
(B) submitted to the Secretary by—
(i) an association of producers of the agricultural
commodity; or
(ii) any other person that may be affected by the
issuance of an order with respect to the agricultural
commodity.
(2) CONSIDERATION OF PROPOSED ORDER.—If the Secretary
determines that a proposed order is consistent with and will
effectuate the purpose of this subtitle, the Secretary shall pub-
lish the proposed order in the Federal Register and give due
notice and opportunity for public comment on the proposed
order.
(3) EXISTENCE
OF
OTHER
ORDERS.—In deciding whether
a proposal for an order is consistent with and will effectuate
the purpose of this subtitle, the Secretary may consider the
existence of other Federal promotion, research, and information
programs or orders issued or developed pursuant to any other
law.
(4) PREPARATION OF FINAL ORDER.—After notice and oppor-
tunity for public comment under paragraph (2) regarding a
proposed order, the Secretary shall take into consideration the
comments received in preparing a final order. The Secretary
shall ensure that the final order is in conformity with the
terms, conditions, and requirements of this subtitle.
(c) ISSUANCE AND EFFECTIVE DATE.—If the Secretary deter-
mines that the final order developed with respect to an agricultural
commodity is consistent with and will effectuate the purpose of
this subtitle, the Secretary shall issue the final order. Except in
the case of an order for which an initial referendum is conducted
under section 518(a), the final order shall be issued and become
H. R. 2854—149
effective not later than 270 days after the date of publication
of the proposed order that was the basis for the final order.
(d) AMENDMENTS.—From time to time the Secretary may amend
any order, consistent with the requirements of section 523.
SEC. 515. REQUIRED TERMS IN ORDERS.
(a) IN GENERAL.—Each order shall contain the terms and condi-
tions specified in this section.
(b) BOARD.—
(1) ESTABLISHMENT.—Each order shall establish a board
to carry out a program of generic promotion, research, and
information regarding the agricultural commodity covered by
the order and intended to effectuate the purpose of this subtitle.
(2) BOARD MEMBERSHIP.—
(A) NUMBER OF MEMBERS.—Each board shall consist
of the number of members considered by the Secretary,
in consultation with the agricultural commodity industry
involved, to be appropriate to administer the order. In
addition to members, the Secretary may also provide for
alternates on the board.
(B) APPOINTMENT.—The Secretary shall appoint the
members and any alternates of a board from among produc-
ers of the agricultural commodity and first handlers and
others in the marketing chain as appropriate. If imports
of the agricultural commodity covered by an order are
subject to assessment under section 516(f), the Secretary
shall also appoint importers as members of the board and
as alternates if alternates are included on the board. The
Secretary may appoint 1 or more members of the general
public to each board.
(C) NOMINATIONS.—The Secretary may make appoint-
ments from nominations made pursuant to the method
set forth in the order.
(D) GEOGRAPHICAL REPRESENTATION.—To ensure fair
and equitable representation of the agricultural commodity
industry covered by an order, the composition of each board
shall reflect the geographical distribution of the production
of the agricultural commodity involved in the United States
and the quantity or value of the agricultural commodity
imported into the United States.
(3) REAPPORTIONMENT OF BOARD MEMBERSHIP.—In accord-
ance with rules issued by the Secretary, at least once in each
5-year period, but not more frequently than once in each 3-
year period, each board shall—
(A) review the geographical distribution in the United
States of the production of the agricultural commodity cov-
ered by the order involved and the quantity or value of
the agricultural commodity imported into the United
States; and
(B) if warranted, recommend to the Secretary the
reapportionment of the board membership to reflect
changes in the geographical distribution of the production
of the agricultural commodity and the quantity or value
of the imported agricultural commodity.
(4) NOTICE.—
H. R. 2854—150
(A) VACANCIES.—Each order shall provide for notice
of board vacancies to the agricultural commodity industry
involved.
(B) MEETINGS.—Each board shall provide the Secretary
with prior notice of meetings of the board to permit the
Secretary, or a designated representative of the Secretary,
to attend the meetings.
(5) TERM OF OFFICE.—
(A) IN
GENERAL.—The members and any alternates
of a board shall each serve for a term of 3 years, except
that the members and any alternates initially appointed
to a board shall serve for terms of not more than 2, 3,
and 4 years, as specified by the order.
(B) LIMITATION ON CONSECUTIVE TERMS.—A member
or alternate may serve not more than 2 consecutive terms.
(C) 
CONTINUATION
OF
TERM.—Notwithstanding
subparagraph (B), each member or alternate shall continue
to serve until a successor is appointed by the Secretary.
(D) VACANCIES.—A vacancy arising before the expira-
tion of a term of office of an incumbent member or alternate
of a board shall be filled in a manner provided for in
the order.
(6) COMPENSATION.—
(A) IN GENERAL.—Members and any alternates of a
board shall serve without compensation.
(B) TRAVEL EXPENSES.—If approved by a board, mem-
bers or alternates shall be reimbursed for reasonable travel
expenses, which may include a per diem allowance or actual
subsistence incurred while away from their homes or regu-
lar places of business in the performance of services for
the board.
(c) POWERS AND DUTIES OF A BOARD.—Each order shall specify
the powers and duties of the board established under the order,
which shall include the power and duty—
(1) to administer the order in accordance with its terms
and conditions and to collect assessments;
(2) to develop and recommend to the Secretary for approval
such bylaws as may be necessary for the functioning of the
board and such rules as may be necessary to administer the
order, including activities authorized to be carried out under
the order;
(3) to meet, organize, and select from among the members
of the board a chairperson, other officers, and committees and
subcommittees, as the board determines to be appropriate;
(4) to employ persons, other than the members, as the
board considers necessary to assist the board in carrying out
its duties, and to determine the compensation and specify the
duties of the persons;
(5) subject to subsection (e), to develop and carry out
generic promotion, research, and information activities relating
to the agricultural commodity covered by the order;
(6) to prepare and submit for the approval of the Secretary,
before the beginning of each fiscal year, rates of assessment
under section 517 and an annual budget of the anticipated
expenses to be incurred in the administration of the order,
including the probable cost of each promotion, research, and
H. R. 2854—151
information activity proposed to be developed or carried out
by the board;
(7) to borrow funds necessary for the startup expenses
of the order;
(8) subject to subsection (f), to enter into contracts or agree-
ments to develop and carry out generic promotion, research,
and information activities relating to the agricultural commod-
ity covered by the order;
(9) to pay the cost of the activities with assessments col-
lected under section 517, earnings from invested assessments,
and other funds;
(10) to keep records that accurately reflect the actions
and transactions of the board, to keep and report minutes
of each meeting of the board to the Secretary, and to furnish
the Secretary with any information or records the Secretary
requests;
(11) to receive, investigate, and report to the Secretary
complaints of violations of the order; and
(12) to recommend to the Secretary such amendments to
the order as the board considers appropriate.
(d) PROHIBITED ACTIVITIES.—A board may not engage in, and
shall prohibit the employees and agents of the board from engaging
in—
(1) any action that would be a conflict of interest;
(2) using funds collected by the board under the order,
any action undertaken for the purpose of influencing any legis-
lation or governmental action or policy other than recommend-
ing to the Secretary amendments to the order; and
(3) any advertising, including promotion, research, and
information activities authorized to be carried out under the
order, that may be false or misleading or disparaging to another
agricultural commodity.
(e) ACTIVITIES AND BUDGETS.—
(1) ACTIVITIES.—Each order shall require the board estab-
lished under the order to submit to the Secretary for approval
plans and projects for promotion, research, or information relat-
ing to the agricultural commodity covered by the order.
(2) BUDGETS.—
(A) SUBMISSION
TO
SECRETARY.—Each order shall
require the board established under the order to submit
to the Secretary for approval a budget of its anticipated
annual expenses and disbursements to be paid to admin-
ister the order. The budget shall be submitted before the
beginning of a fiscal year and as frequently as may be
necessary after the beginning of the fiscal year.
(B) REIMBURSEMENT OF SECRETARY.—Each order shall
require that the Secretary be reimbursed for all expenses
incurred by the Secretary in the implementation, adminis-
tration, and supervision of the order, including all referenda
costs incurred in connection with the order.
(3) INCURRING EXPENSES.—A board may incur the expenses
described in paragraph (2) and other expenses for the adminis-
tration, maintenance, and functioning of the board as author-
ized by the Secretary.
(4) PAYMENT OF EXPENSES.—Expenses incurred under para-
graph (3) shall be paid by a board using assessments collected
under section 517, earnings obtained from assessments, and
H. R. 2854—152
other income of the board. Any funds borrowed by the board
shall be expended only for startup costs and capital outlays.
(5) LIMITATION ON SPENDING.—For fiscal years beginning
3 or more years after the date of the establishment of a board,
the board may not expend for administration (except for
reimbursements to the Secretary required under paragraph
(2)(B)), maintenance, and functioning of the board in a fiscal
year an amount that exceeds 15 percent of the assessment
and other income received by the board for the fiscal year.
(f) CONTRACTS AND AGREEMENTS.—
(1) IN GENERAL.—Each order shall provide that, with the
approval of the Secretary, the board established under the
order may—
(A) enter into contracts and agreements to carry out
generic promotion, research, and information activities
relating to the agricultural commodity covered by the order,
including contracts and agreements with producer associa-
tions or other entities as considered appropriate by the
Secretary; and
(B) pay the cost of approved generic promotion,
research, and information activities using assessments col-
lected under section 517, earnings obtained from assess-
ments, and other income of the board.
(2) REQUIREMENTS.—Each contract or agreement shall pro-
vide that any person who enters into the contract or agreement
with the board shall—
(A) develop and submit to the board a proposed activity
together with a budget that specifies the cost to be incurred
to carry out the activity;
(B) keep accurate records of all of its transactions
relating to the contract or agreement;
(C) account for funds received and expended in connec-
tion with the contract or agreement;
(D) make periodic reports to the board of activities
conducted under the contract or agreement; and
(E) make such other reports as the board or the Sec-
retary considers relevant.
(g) RECORDS OF BOARD.—
(1) IN GENERAL.—Each order shall require the board estab-
lished under the order—
(A) to maintain such records as the Secretary may
require and to make the records available to the Secretary
for inspection and audit;
(B) to collect and submit to the Secretary, at any
time the Secretary may specify, any information the Sec-
retary may request; and
(C) to account for the receipt and disbursement of
all funds in the possession, or under the control, of the
board.
(2) AUDITS.—Each order shall require the board established
under the order to have—
(A) its records audited by an independent auditor at
the end of each fiscal year; and
(B) a report of the audit submitted directly to the
Secretary.
(h) PERIODIC EVALUATION.—In accordance with section 501(c),
each order shall require the board established under the order
H. R. 2854—153
to provide for the independent evaluation of all generic promotion,
research, and information activities undertaken under the order.
(i) BOOKS AND RECORDS OF PERSONS COVERED BY ORDER.—
(1) IN GENERAL.—Each order shall require that producers,
first handlers and other persons in the marketing chain as
appropriate, and importers covered by the order shall—
(A) maintain records sufficient to ensure compliance
with the order and regulations;
(B) submit to the board established under the order
any information required by the board to carry out its
responsibilities under the order; and
(C) make the records described in subparagraph (A)
available, during normal business hours, for inspection by
employees or agents of the board or the Department, includ-
ing any records necessary to verify information required
under subparagraph (B).
(2) TIME REQUIREMENT.—Any record required to be main-
tained under paragraph (1) shall be maintained for such time
period as the Secretary may prescribe.
(3) OTHER INFORMATION.—The Secretary may use, and may
authorize the board to use under this subtitle, information
regarding persons subject to an order that is collected by the
Department under any other law.
(4) CONFIDENTIALITY OF INFORMATION.—
(A) IN GENERAL.—Except as otherwise provided in this
subtitle, all information obtained under paragraph (1) or
as part of a referendum under section 518 shall be kept
confidential by all officers, employees, and agents of the
Department and of the board.
(B) DISCLOSURE.—Information referred to in subpara-
graph (A) may be disclosed only if—
(i) the Secretary considers the information rel-
evant; and
(ii) the information is revealed in a judicial
proceeding or administrative hearing brought at the
direction or on the request of the Secretary or to which
the Secretary or any officer of the Department is a
party.
(C) OTHER EXCEPTIONS.—This paragraph shall not pro-
hibit—
(i) the issuance of general statements based on
reports or on information relating to a number of per-
sons subject to an order if the statements do not iden-
tify the information furnished by any person; or
(ii) the publication, by direction of the Secretary,
of the name of any person violating any order and
a statement of the particular provisions of the order
violated by the person.
(D) PENALTY.—Any person who willfully violates this
subsection shall be subject, on conviction, to a fine of not
more than $1,000 or to imprisonment for not more than
1 year, or both.
(5) WITHHOLDING INFORMATION.—This subsection shall not
authorize the withholding of information from Congress.
H. R. 2854—154
SEC. 516. PERMISSIVE TERMS IN ORDERS.
(a) EXEMPTIONS.—An order issued under this subtitle may con-
tain—
(1) authority for the Secretary to exempt from the order
any de minimis quantity of an agricultural commodity otherwise
covered by the order; and
(2) authority for the board established under the order
to require satisfactory safeguards against improper use of the
exemption.
(b) DIFFERENT PAYMENT AND REPORTING SCHEDULES.—An order
issued under this subtitle may contain authority for the board
established under the order to designate different payment and
reporting schedules to recognize differences in agricultural commod-
ity industry marketing practices and procedures used in different
production and importing areas.
(c) ACTIVITIES.—An order issued under this subtitle may contain
authority to develop and carry out research, promotion, and
information activities designed to expand, improve, or make more
efficient the marketing or use of the agricultural commodity covered
by the order in domestic and foreign markets. Section 515(e) shall
apply with respect to activities authorized under this subsection.
(d) RESERVE FUNDS.—An order issued under this subtitle may
contain authority to reserve funds from assessments collected under
section 517 to permit an effective and continuous coordinated pro-
gram of research, promotion, and information in years when the
yield from assessments may be reduced, except that the amount
of funds reserved may not exceed the greatest aggregate amount
of the anticipated disbursements specified in budgets approved
under section 515(e) by the Secretary for any 2 fiscal years.
(e) CREDITS.—
(1) GENERIC ACTIVITIES.—An order issued under this sub-
title may contain authority to provide credits of assessments
for those individuals who contribute to other similar generic
research, promotion, and information programs at the State,
regional, or local level.
(2) BRANDED ACTIVITIES.—
(A) IN GENERAL.—The Secretary may permit a farmer
cooperative that engages in branded activities relating to
the marketing of the products of members of the cooperative
to receive an annual credit for the activities and related
expenditures in the form of a deduction of the total cost
of the activities and related expenditures from the amount
of any assessment that would otherwise be required to
be paid by the producer members of the cooperative under
an order issued under this subtitle.
(B) ELECTION BY COOPERATIVE.—A farmer cooperative
may elect to voluntarily waive the application of subpara-
graph (A) to the cooperative.
(f) ASSESSMENT OF IMPORTS.—An order issued under this sub-
title may contain authority for the board established under the
order to assess under section 517 an imported agricultural commod-
ity, or products of such an agricultural commodity, at a rate com-
parable to the rate determined by the appropriate board for the
domestic agricultural commodity covered by the order.
(g) OTHER AUTHORITY.—An order issued under this subtitle
may contain authority to take any other action that—
H. R. 2854—155
(1) is not inconsistent with the purpose of this subtitle,
any term or condition specified in section 515, or any rule
issued to carry out this subtitle; and
(2) is necessary to administer the order.
SEC. 517. ASSESSMENTS.
(a) ASSESSMENTS AUTHORIZED.—While an order issued under
this subtitle is in effect with respect to an agricultural commodity,
assessments shall be—
(1) paid by first handlers with respect to the agricultural
commodity produced and marketed in the United States; and
(2) paid by importers with respect to the agricultural
commodity imported into the United States, if the imported
agricultural commodity is covered by the order pursuant to
section 516(f).
(b) COLLECTION.—Assessments required under an order shall
be remitted to the board established under the order at the time
and in the manner prescribed by the order.
(c) LIMITATION ON ASSESSMENTS.—Not more than 1 assessment
may be levied on a first handler or importer under subsection
(a) with respect to any agricultural commodity.
(d) ASSESSMENT RATES.—The board shall recommend to the
Secretary 1 or more rates of assessment to be levied under sub-
section (a). If approved by the Secretary, the rates shall take effect.
An order may provide that an assessment rate may not be increased
unless approved by a referendum conducted pursuant to section
518.
(e) LATE-PAYMENT AND INTEREST CHARGES.—
(1) IN GENERAL.—Late-payment and interest charges may
be levied on each person subject to an order who fails to
remit an assessment in accordance with subsection (b).
(2) RATE.—The rate for the charges shall be specified by
the Secretary.
(f) INVESTMENT
OF ASSESSMENTS.—Pending disbursement of
assessments under a budget approved by the Secretary, a board
may invest assessments collected under this section in—
(1) obligations of the United States or any agency of the
United States;
(2) general obligations of any State or any political subdivi-
sion of a State;
(3) interest-bearing accounts or certificates of deposit of
financial institutions that are members of the Federal Reserve
System; or
(4) obligations fully guaranteed as to principal and interest
by the United States.
(g) REFUND OF ASSESSMENTS FROM ESCROW ACCOUNT.—
(1) ESCROW
ACCOUNT.—During the period beginning on
the effective date of an order and ending on the date the
Secretary announces the results of a referendum that is con-
ducted under section 518(b)(1) with respect to the order, the
board established under the order shall—
(A) establish and maintain an escrow account of the
kind described in subsection (f)(3) to be used to refund
assessments; and
(B) deposit funds in the account in accordance with
paragraph (2).
H. R. 2854—156
(2) AMOUNT TO BE DEPOSITED.—The board shall deposit
in the account an amount equal to 10 percent of the assess-
ments collected during the period referred to in paragraph
(1).
(3) RIGHT TO RECEIVE REFUND.—Subject to paragraphs (4),
(5), and (6), persons subject to an order shall be eligible to
demand a refund of assessments collected during the period
referred to in paragraph (1) if—
(A) the assessments were remitted on behalf of the
person; and
(B) the order is not approved in the referendum.
(4) FORM
OF
DEMAND.—The demand for a refund shall
be made at such time and in such form as specified by the
order.
(5) PAYMENT OF REFUND.—A person entitled to a refund
shall be paid promptly after the board receives satisfactory
proof that the assessment for which the refund is demanded
was paid on behalf of the person who makes the demand.
(6) PRORATION.—If the funds in the escrow account required
by paragraph (1) are insufficient to pay the amount of all
refunds that persons subject to an order otherwise would have
a right to receive under this subsection, the board shall prorate
the amount of the funds among all the persons.
(7) CLOSING OF ESCROW ACCOUNT.—If the order is approved
in a referendum conducted under section 518(b)(1)—
(A) the escrow account shall be closed; and
(B) the funds shall be available to the board for
disbursement as authorized in the order.
SEC. 518. REFERENDA.
(a) INITIAL REFERENDUM.—
(1) 
OPTIONAL
REFERENDUM.—For 
the 
purpose 
of
ascertaining whether the persons to be covered by an order
favor the order going into effect, the order may provide for
the Secretary to conduct an initial referendum among persons
to be subject to an assessment under section 517 who, during
a representative period determined by the Secretary, engaged
in—
(A) the production or handling of the agricultural
commodity covered by the order; or
(B) the importation of the agricultural commodity.
(2) PROCEDURE.—The results of the referendum shall be
determined in accordance with subsection (e). The Secretary
may require that the agricultural commodity industry involved
post a bond or other collateral to cover the cost of the referen-
dum.
(b) REQUIRED REFERENDA.—
(1) IN GENERAL.—For the purpose of ascertaining whether
the persons covered by an order favor the continuation, suspen-
sion, or termination of the order, the Secretary shall conduct
a referendum among persons subject to assessments under
section 517 who, during a representative period determined
by the Secretary, have engaged in—
(A) the production or handling of the agricultural
commodity covered by the order; or
(B) the importation of the agricultural commodity.
H. R. 2854—157
(2) TIME FOR REFERENDUM.—The referendum shall be con-
ducted not later than 3 years after assessments first begin
under the order.
(3) EXCEPTION.—This subsection shall not apply if an initial
referendum was conducted under subsection (a).
(c) SUBSEQUENT REFERENDA.—The Secretary shall conduct a
subsequent referendum—
(1) not later than 7 years after assessments first begin
under the order;
(2) at the request of the board established under the order;
or
(3) at the request of 10 percent or more of the number
of persons eligible to vote under subsection (b)(1);
to determine if the persons favor the continuation, suspension,
or termination of the order.
(d) OTHER REFERENDA.—The Secretary may conduct a referen-
dum at any time to determine whether the continuation, suspension,
or termination of the order or a provision of the order is favored
by persons eligible to vote under subsection (b)(1).
(e) APPROVAL OF ORDER.—An order may provide for its approval
in a referendum—
(1) by a majority of those persons voting;
(2) by persons voting for approval who represent a majority
of the volume of the agricultural commodity; or
(3) by a majority of those persons voting for approval
who also represent a majority of the volume of the agricultural
commodity.
(f) COSTS
OF REFERENDA.—The board established under an
order with respect to which a referendum is conducted under this
section shall reimburse the Secretary for any expenses incurred
by the Secretary to conduct the referendum.
(g) MANNER OF CONDUCTING REFERENDA.—
(1) IN GENERAL.—A referendum conducted under this sec-
tion shall be conducted in the manner determined by the Sec-
retary to be appropriate.
(2) ADVANCE REGISTRATION.—If the Secretary determines
that an advance registration of eligible voters in a referendum
is necessary before the voting period in order to facilitate the
conduct of the referendum, the Secretary may institute the
advance registration procedures by mail, or in person through
the use of national and local offices of the Department.
(3) VOTING.—Eligible voters may vote by mail ballot in
the referendum or in person if so prescribed by the Secretary.
(4) NOTICE.—Not later than 30 days before a referendum
is conducted under this section with respect to an order, the
Secretary shall notify the agricultural commodity industry
involved, in such manner as determined by the Secretary, of
the period during which voting in the referendum will occur.
The notice shall explain any registration and voting procedures
established under this subsection.
SEC. 519. PETITION AND REVIEW OF ORDERS.
(a) PETITION.—
(1) IN GENERAL.—A person subject to an order issued under
this subtitle may file with the Secretary a petition—
H. R. 2854—158
(A) stating that the order, any provision of the order,
or any obligation imposed in connection with the order,
is not established in accordance with law; and
(B) requesting a modification of the order or an exemp-
tion from the order.
(2) HEARING.—The Secretary shall give the petitioner an
opportunity for a hearing on the petition, in accordance with
regulations issued by the Secretary.
(3) RULING.—After the hearing, the Secretary shall make
a ruling on the petition. The ruling shall be final, subject
to review as set forth in subsection (b).
(4) LIMITATION ON PETITION.—Any petition filed under this
subsection challenging an order, any provision of the order,
or any obligation imposed in connection with the order, shall
be filed within 2 years after the effective date of the order,
provision, or obligation subject to challenge in the petition.
(b) REVIEW.—
(1) COMMENCEMENT OF ACTION.—The district court of the
United States for any district in which a person who is a
petitioner under subsection (a) resides or carries on business
shall have jurisdiction to review the final ruling on the petition
of the person, if a complaint for that purpose is filed not
later than 20 days after the date of the entry of the final
ruling by the Secretary under subsection (a)(3).
(2) PROCESS.—Service of process in a proceeding may be
made on the Secretary by delivering a copy of the complaint
to the Secretary.
(3) REMANDS.—If the court determines that the ruling is
not in accordance with law, the court shall remand the matter
to the Secretary with directions—
(A) to make such ruling as the court determines to
be in accordance with law; or
(B) to take such further action as, in the opinion of
the court, the law requires.
(c) EFFECT ON ENFORCEMENT PROCEEDINGS.—The pendency of
a petition filed under subsection (a) or an action commenced under
subsection (b) shall not operate as a stay of any action authorized
by section 520 to be taken to enforce this subtitle, including any
rule, order, or penalty in effect under this subtitle.
SEC. 520. ENFORCEMENT.
(a) JURISDICTION.—The district courts of the United States
shall have jurisdiction specifically to enforce, and to prevent and
restrain a person from violating, an order or regulation issued
under this subtitle.
(b) REFERRAL TO ATTORNEY GENERAL.—A civil action authorized
to be brought under this section shall be referred to the Attorney
General for appropriate action, except that the Secretary shall
not be required to refer to the Attorney General a violation of
this subtitle if the Secretary believes that the administration and
enforcement of this subtitle would be adequately served by providing
a suitable written notice or warning to the person who committed
the violation or by an administrative action under this section.
(c) CIVIL PENALTIES AND ORDERS.—
(1) CIVIL PENALTIES.—A person who willfully violates an
order or regulation issued by the Secretary under this Act
H. R. 2854—159
may be assessed by the Secretary a civil penalty of not less
than $1,000 and not more than $10,000 for each violation.
(2) SEPARATE OFFENSE.—Each violation and each day dur-
ing which there is a failure to comply with an order or regula-
tion issued by the Secretary shall be considered to be a separate
offense.
(3) CEASE-AND-DESIST ORDERS.—In addition to, or in lieu
of, a civil penalty, the Secretary may issue an order requiring
a person to cease and desist from violating the order or regula-
tion.
(4) NOTICE AND HEARING.—No order assessing a penalty
or cease-and-desist order may be issued by the Secretary under
this subsection unless the Secretary provides notice and an
opportunity for a hearing on the record with respect to the
violation.
(5) FINALITY.—An order assessing a penalty or a cease-
and-desist order issued under this subsection by the Secretary
shall be final and conclusive unless the person against whom
the order is issued files an appeal from the order with the
United States court of appeals, as provided in subsection (d).
(d) REVIEW BY COURT OF APPEALS.—
(1) IN GENERAL.—A person against whom an order is issued
under subsection (c) may obtain review of the order by—
(A) filing, not later than 30 days after the person
receives notice of the order, a notice of appeal in—
(i) the United States court of appeals for the circuit
in which the person resides or carries on business;
or
(ii) the United States Court of Appeals for the
District of Columbia Circuit; and
(B) simultaneously sending a copy of the notice of
appeal by certified mail to the Secretary.
(2) RECORD.—The Secretary shall file with the court a
certified copy of the record on which the Secretary has deter-
mined that the person has committed a violation.
(3) STANDARD OF REVIEW.—A finding of the Secretary under
this section shall be set aside only if the finding is found
to be unsupported by substantial evidence on the record.
(e) FAILURE TO OBEY CEASE-AND-DESIST ORDERS.—A person
who fails to obey a valid cease-and-desist order issued by the
Secretary under this section, after an opportunity for a hearing,
shall be subject to a civil penalty assessed by the Secretary of
not less than $1,000 and not more than $10,000 for each offense.
Each day during which the failure continues shall be considered
to be a separate violation of the cease-and-desist order.
(f) FAILURE TO PAY PENALTIES.—If a person fails to pay a
civil penalty imposed under this section by the Secretary, the Sec-
retary shall refer the matter to the Attorney General for recovery
of the amount assessed in the district court of the United States
for any district in which the person resides or carries on business.
In the action, the validity and appropriateness of the order imposing
the civil penalty shall not be subject to review.
(g) ADDITIONAL REMEDIES.—The remedies provided in this sec-
tion shall be in addition to, and not exclusive of, other remedies
that may be available.
H. R. 2854—160
SEC. 521. INVESTIGATIONS AND POWER TO SUBPOENA.
(a) INVESTIGATIONS.—The Secretary may make such investiga-
tions as the Secretary considers necessary—
(1) for the effective administration of this subtitle; or
(2) to determine whether any person subject to this subtitle
has engaged, or is about to engage, in any action that con-
stitutes or will constitute a violation of this subtitle or any
order or regulation issued under this subtitle.
(b) SUBPOENAS, OATHS, AND AFFIRMATIONS.—For the purpose
of any investigation under subsection (a), the Secretary may admin-
ister oaths and affirmations, subpoena witnesses, compel the attend-
ance of witnesses, take evidence, and require the production of
any records or documents that are relevant to the inquiry. The
attendance of witnesses and the production of records or documents
may be required from any place in the United States.
(c) AID OF COURTS.—In the case of contumacy by, or refusal
to obey a subpoena issued to, any person, the Secretary may invoke
the aid of any court of the United States within the jurisdiction
of which the investigation or proceeding is carried on, or where
the person resides or carries on business, in order to require the
attendance and testimony of the person or the production of records
or documents. The court may issue an order requiring the person
to appear before the Secretary to produce records or documents
or to give testimony regarding the matter under investigation.
(d) CONTEMPT.—Any failure to obey the order of the court
may be punished by the court as a contempt of the court.
(e) PROCESS.—Process in any case under this section may be
served in the judicial district in which the person resides or carries
on business or wherever the person may be found.
SEC. 522. SUSPENSION OR TERMINATION.
(a) MANDATORY SUSPENSION OR TERMINATION.—The Secretary
shall suspend or terminate an order or a provision of an order
if the Secretary finds that an order or a provision of an order
obstructs or does not tend to effectuate the purpose of this subtitle,
or if the Secretary determines that the order or a provision of
an order is not favored by persons voting in a referendum conducted
under section 518.
(b) IMPLEMENTATION OF SUSPENSION OR TERMINATION.—If, as
a result of a referendum conducted under section 518, the Secretary
determines that an order is not approved, the Secretary shall—
(1) not later than 180 days after making the determination,
suspend or terminate, as the case may be, collection of assess-
ments under the order; and
(2) as soon as practicable, suspend or terminate, as the
case may be, activities under the order in an orderly manner.
SEC. 523. AMENDMENTS TO ORDERS.
The provisions of this subtitle applicable to an order shall
be applicable to any amendment to an order, except that section
518 shall not apply to an amendment.
SEC. 524. EFFECT ON OTHER LAWS.
This subtitle shall not affect or preempt any other Federal
or State law authorizing promotion or research relating to an agri-
cultural commodity.
H. R. 2854—161
SEC. 525. REGULATIONS.
The Secretary may issue such regulations as may be necessary
to carry out this subtitle and the power vested in the Secretary
under this subtitle.
SEC. 526. AUTHORIZATION OF APPROPRIATIONS.
(a) IN GENERAL.—There are authorized to be appropriated such
sums as may be necessary to carry out this subtitle.
(b) 
LIMITATION
ON
EXPENDITURES
FOR
ADMINISTRATIVE
EXPENSES.—Funds appropriated to carry out this subtitle may not
be expended for the payment of expenses incurred by a board
to administer an order.
Subtitle C—Canola and Rapeseed
SEC. 531. SHORT TITLE.
This subtitle may be cited as the ‘‘Canola and Rapeseed
Research, Promotion, and Consumer Information Act’’.
SEC. 532. FINDINGS AND DECLARATION OF POLICY.
(a) FINDINGS.—Congress finds that—
(1) canola and rapeseed products are an important and
nutritious part of the human diet;
(2) the production of canola and rapeseed products plays
a significant role in the economy of the United States in that—
(A) canola and rapeseed products are produced by thou-
sands of canola and rapeseed producers and processed by
numerous processing entities; and
(B) canola and rapeseed products produced in the
United States are consumed by people throughout the
United States and foreign countries;
(3) canola, rapeseed, and canola and rapeseed products
should be readily available and marketed efficiently to ensure
that consumers have an adequate supply of canola and rapeseed
products at a reasonable price;
(4) the maintenance and expansion of existing markets
and development of new markets for canola, rapeseed, and
canola and rapeseed products are vital to the welfare of canola
and rapeseed producers and processors and those persons con-
cerned with marketing canola, rapeseed, and canola and
rapeseed products, as well as to the general economy of the
United States, and are necessary to ensure the ready availabil-
ity and efficient marketing of canola, rapeseed, and canola
and rapeseed products;
(5) there exist established State and national organizations
conducting canola and rapeseed research, promotion, and
consumer education programs that are valuable to the efforts
of promoting the consumption of canola, rapeseed, and canola
and rapeseed products;
(6) 
the 
cooperative 
development, 
financing, 
and
implementation of a coordinated national program of canola
and rapeseed research, promotion, consumer information, and
industry information is necessary to maintain and expand exist-
ing markets and develop new markets for canola, rapeseed,
and canola and rapeseed products; and
(7) canola, rapeseed, and canola and rapeseed products
move in interstate and foreign commerce, and canola, rapeseed,
H. R. 2854—162
and canola and rapeseed products that do not move in interstate
or foreign commerce directly burden or affect interstate com-
merce in canola, rapeseed, and canola and rapeseed products.
(b) POLICY.—It is the policy of this subtitle to establish an
orderly procedure for developing, financing through assessments
on domestically produced canola and rapeseed, and implementing
a program of research, promotion, consumer information, and indus-
try information designed to strengthen the position in the market-
place of the canola and rapeseed industry, to maintain and expand
existing domestic and foreign markets and uses for canola, rapeseed,
and canola and rapeseed products, and to develop new markets
and uses for canola, rapeseed, and canola and rapeseed products.
(c) CONSTRUCTION.—Nothing in this subtitle provides for the
control of production or otherwise limits the right of individual
producers to produce canola, rapeseed, or canola or rapeseed prod-
ucts.
SEC. 533. DEFINITIONS.
In this subtitle (unless the context otherwise requires):
(1) BOARD.—The term ‘‘Board’’ means the National Canola
and Rapeseed Board established under section 535(b).
(2) CANOLA; RAPESEED.—The terms ‘‘canola’’ and ‘‘rapeseed’’
mean any brassica plant grown in the United States for the
production of an oilseed, the oil of which is used for a food
or nonfood use.
(3) CANOLA OR RAPESEED PRODUCT.—The term ‘‘canola or
rapeseed product’’ means a product produced, in whole or in
part, from canola or rapeseed.
(4) COMMERCE.—The term ‘‘commerce’’ includes interstate,
foreign, and intrastate commerce.
(5) CONFLICT OF INTEREST.—The term ‘‘conflict of interest’’
means a situation in which a member of the Board has a
direct or indirect financial interest in a corporation, partner-
ship, sole proprietorship, joint venture, or other business entity
dealing directly or indirectly with the Board.
(6) 
CONSUMER
INFORMATION.—The 
term 
‘‘consumer
information’’ means information that will assist consumers and
other persons in making evaluations and decisions regarding
the purchase, preparation, and use of canola, rapeseed, or
canola or rapeseed products.
(7) DEPARTMENT.—The term ‘‘Department’’ means the
Department of Agriculture.
(8) FIRST PURCHASER.—The term ‘‘first purchaser’’ means—
(A) except as provided in subparagraph (B), a person
who buys or otherwise acquires canola, rapeseed, or canola
or rapeseed products produced by a producer; or
(B) the Commodity Credit Corporation, in a case in
which canola or rapeseed is forfeited to the Commodity
Credit Corporation as collateral for a loan issued under
a price support loan program administered by the Commod-
ity Credit Corporation.
(9) INDUSTRY INFORMATION.—The term ‘‘industry informa-
tion’’ means information or a program that will lead to the
development of new markets, new marketing strategies, or
increased efficiency for the canola and rapeseed industry, or
an activity to enhance the image of the canola or rapeseed
industry.
H. R. 2854—163
(10) INDUSTRY
MEMBER.—The term ‘‘industry member’’
means a member of the canola and rapeseed industry who
represents—
(A) manufacturers of canola or rapeseed products; or
(B) persons who commercially buy or sell canola or
rapeseed.
(11) MARKETING.—The term ‘‘marketing’’ means the sale
or other disposition of canola, rapeseed, or canola or rapeseed
products in a channel of commerce.
(12) ORDER.—The term ‘‘order’’ means an order issued
under section 534.
(13) PERSON.—The term ‘‘person’’ means an individual,
partnership, corporation, association, cooperative, or any other
legal entity.
(14) PRODUCER.—The term ‘‘producer’’ means a person
engaged in the growing of canola or rapeseed in the United
States who owns, or who shares the ownership and risk of
loss of, the canola or rapeseed.
(15) PROMOTION.—The term ‘‘promotion’’ means an action,
including paid advertising, technical assistance, or a trade serv-
icing activity, to enhance the image or desirability of canola,
rapeseed, or canola or rapeseed products in domestic and for-
eign markets, or an activity designed to communicate to
consumers, processors, wholesalers, retailers, government offi-
cials, or other persons information relating to the positive
attributes of canola, rapeseed, or canola or rapeseed products
or the benefits of use or distribution of canola, rapeseed, or
canola or rapeseed products.
(16) RESEARCH.—The term ‘‘research’’ means any type of
test, study, or analysis to advance the image, desirability,
marketability, production, product development, quality, or
functional or nutritional value of canola, rapeseed, or canola
or rapeseed products, including research activity designed to
identify and analyze barriers to export sales of canola or
rapeseed produced in the United States.
(17) SECRETARY.—The term ‘‘Secretary’’ means the Sec-
retary of Agriculture.
(18) STATE.—The term ‘‘State’’ means any of the 50 States,
the District of Columbia and the Commonwealth of Puerto
Rico.
(19) UNITED
STATES.—The term ‘‘United States’’ means
collectively the 50 States, the District of Columbia, and the
Commonwealth of Puerto Rico.
SEC. 534. ISSUANCE AND AMENDMENT OF ORDERS.
(a) IN GENERAL.—Subject to subsection (b), the Secretary shall
issue 1 or more orders under this subtitle applicable to producers
and first purchasers of canola, rapeseed, or canola or rapeseed
products. The order shall be national in scope. Not more than
1 order shall be in effect under this subtitle at any 1 time.
(b) PROCEDURE.—
(1) PROPOSAL OR REQUEST FOR ISSUANCE.—The Secretary
may propose the issuance of an order under this subtitle, or
an association of canola and rapeseed producers or any other
person that would be affected by an order issued pursuant
to this subtitle may request the issuance of, and submit a
proposal for, an order.
H. R. 2854—164
(2) NOTICE AND COMMENT CONCERNING PROPOSED ORDER.—
Not later than 60 days after the receipt of a request and
proposal for an order pursuant to paragraph (1), or whenever
the Secretary determines to propose an order, the Secretary
shall publish a proposed order and give due notice and oppor-
tunity for public comment on the proposed order.
(3) ISSUANCE OF ORDER.—After notice and opportunity for
public comment are given as provided in paragraph (2), the
Secretary shall issue an order, taking into consideration the
comments received and including in the order provisions nec-
essary to ensure that the order is in conformity with the
requirements of this subtitle. The order shall be issued and
become effective not later than 180 days following publication
of the proposed order.
(c) AMENDMENTS.—The Secretary may amend an order issued
under this section.
SEC. 535. REQUIRED TERMS IN ORDERS.
(a) IN GENERAL.—An order issued under this subtitle shall
contain the terms and conditions specified in this section.
(b) ESTABLISHMENT AND MEMBERSHIP OF THE NATIONAL CANOLA
AND RAPESEED BOARD.—
(1) IN GENERAL.—The order shall provide for the establish-
ment of, and appointment of members to, a National Canola
and Rapeseed Board to administer the order.
(2) SERVICE TO ENTIRE INDUSTRY.—The Board shall carry
out programs and projects that will provide maximum benefit
to the canola and rapeseed industry in all parts of the United
States and only promote canola, rapeseed, or canola or rapeseed
products.
(3) BOARD
MEMBERSHIP.—The Board shall consist of 15
members, including—
(A) 11 members who are producers, including—
(i) 1 member from each of the 6 geographic regions
comprised of States where canola or rapeseed is pro-
duced, as determined by the Secretary; and
(ii) 5 members from the geographic regions
referred to in clause (i), allocated according to the
production in each region; and
(B) 4 members who are industry members, including
at least—
(i) 1 member who represents manufacturers of
canola or rapeseed end products; and
(ii) 1 member who represents persons who commer-
cially buy or sell canola or rapeseed.
(4) LIMITATION ON STATE RESIDENCE.—There shall be no
more than 4 producer members of the Board from any 1 State.
(5) MODIFYING BOARD MEMBERSHIP.—In accordance with
regulations approved by the Secretary, at least once each 3
years and not more than once each 2 years, the Board shall
review the geographic distribution of canola and rapeseed
production throughout the United States and, if warranted,
recommend to the Secretary that the Secretary—
(A) reapportion regions in order to reflect the
geographic distribution of canola and rapeseed production;
and
H. R. 2854—165
(B) reapportion the seats on the Board to reflect the
production in each region.
(6) CERTIFICATION OF ORGANIZATIONS.—
(A) IN GENERAL.—For the purposes of section 536, the
eligibility of any State organization to represent producers
shall be certified by the Secretary.
(B) CRITERIA.—The Secretary shall certify any State
organization that the Secretary determines has a history
of stability and permanency and meets at least 1 of the
following criteria:
(i) MAJORITY
REPRESENTATION.—The total paid
membership of the organization—
(I) is comprised of at least a majority of canola
or rapeseed producers; or
(II) represents at least a majority of the canola
or rapeseed producers in the State.
(ii) SUBSTANTIAL
NUMBER
OF
PRODUCERS
REP-
RESENTED.—The organization represents a substantial
number of producers that produce a substantial quan-
tity of canola or rapeseed in the State.
(iii) PURPOSE.—The organization is a general farm
or agricultural organization that has as a stated objec-
tive the promotion and development of the United
States canola or rapeseed industry and the economic
welfare of United States canola or rapeseed producers.
(C) REPORT.—The Secretary shall make a certification
under this paragraph on the basis of a factual report
submitted by the State organization.
(7) TERMS OF OFFICE.—
(A) IN GENERAL.—A member of the Board shall serve
for a term of 3 years, except that the members appointed
to the initial Board shall serve, proportionately, for terms
of 1, 2, and 3 years, as determined by the Secretary.
(B) LIMITATION ON TERMS.—No individual may serve
more than 2 consecutive 3-year terms as a member.
(C) 
TERMINATION
OF
TERMS.—Notwithstanding
subparagraph (B), each member shall continue to serve
until a successor is appointed by the Secretary.
(8) COMPENSATION.—A member of the Board shall serve
without compensation, but shall be reimbursed for necessary
and reasonable expenses incurred in the performance of duties
for and approved by the Board.
(c) POWERS AND DUTIES OF THE BOARD.—The order shall define
the powers and duties of the Board, which shall include the power
and duty—
(1) to administer the order in accordance with the terms
and conditions of the order;
(2) to issue regulations to effectuate the terms and condi-
tions of the order;
(3) to meet, organize, and select from among members
of the Board a chairperson, other officers, and committees and
subcommittees, as the Board determines appropriate;
(4) to establish working committees of persons other than
Board members;
(5) to employ such persons, other than Board members,
as the Board considers necessary, and to determine the com-
pensation and define the duties of the persons;
H. R. 2854—166
(6) to prepare and submit for the approval of the Secretary,
when appropriate or necessary, a recommended rate of assess-
ment under section 536, and a fiscal period budget of the
anticipated expenses in the administration of the order, includ-
ing the probable costs of all programs and projects;
(7) to develop programs and projects, subject to subsection
(d);
(8) to enter into contracts or agreements, subject to sub-
section (e), to develop and carry out programs or projects of
research, promotion, industry information, and consumer
information;
(9) to carry out research, promotion, industry information,
and consumer information projects, and to pay the costs of
the projects with assessments collected under section 536;
(10) to keep minutes, books, and records that reflect the
actions and transactions of the Board, and promptly report
minutes of each Board meeting to the Secretary;
(11) to appoint and convene, from time to time, working
committees comprised of producers, industry members, and
the public to assist in the development of research, promotion,
industry information, and consumer information programs for
canola, rapeseed, and canola and rapeseed products;
(12) to invest, pending disbursement under a program or
project, funds collected through assessments authorized under
section 536, or funds earned from investments, only in—
(A) obligations of the United States or an agency of
the United States;
(B) general obligations of a State or a political subdivi-
sion of a State;
(C) an interest-bearing account or certificate of deposit
of a bank that is a member of the Federal Reserve System;
or
(D) obligations fully guaranteed as to principal and
interest by the United States;
(13) to receive, investigate, and report to the Secretary
complaints of violations of the order;
(14) to furnish the Secretary with such information as
the Secretary may request;
(15) to recommend to the Secretary amendments to the
order;
(16) to develop and recommend to the Secretary for
approval such regulations as may be necessary for the develop-
ment and execution of programs or projects, or as may otherwise
be necessary, to carry out the order; and
(17) to provide the Secretary with advance notice of meet-
ings.
(d) PROGRAMS AND BUDGETS.—
(1) SUBMISSION TO SECRETARY.—The order shall provide
that the Board shall submit to the Secretary for approval
any program or project of research, promotion, consumer
information, or industry information. No program or project
shall be implemented prior to approval by the Secretary.
(2) BUDGETS.—The order shall require the Board, prior
to the beginning of each fiscal year, or as may be necessary
after the beginning of a fiscal year, to submit to the Secretary
for approval budgets of anticipated expenses and disbursements
in the implementation of the order, including projected costs
H. R. 2854—167
of research, promotion, consumer information, and industry
information programs and projects.
(3) INCURRING
EXPENSES.—The Board may incur such
expenses for programs or projects of research, promotion,
consumer information, or industry information, and other
expenses for the administration, maintenance, and functioning
of the Board as may be authorized by the Secretary, including
any implementation, administrative, and referendum costs
incurred by the Department.
(4) PAYING EXPENSES.—The funds to cover the expenses
referred to in paragraph (3) shall be paid by the Board from
assessments collected under section 536 or funds borrowed
pursuant to paragraph (5).
(5) AUTHORITY TO BORROW.—To meet the expenses referred
to in paragraph (3), the Board shall have the authority to
borrow funds, as approved by the Secretary, for capital outlays
and startup costs.
(e) CONTRACTS AND AGREEMENTS.—
(1) IN GENERAL.—To ensure efficient use of funds, the order
shall provide that the Board may enter into a contract or
agreement for the implementation and carrying out of a pro-
gram or project of canola, rapeseed, or canola or rapeseed
products research, promotion, consumer information, or indus-
try information, including a contract with a producer organiza-
tion, and for the payment of the costs with funds received
by the Board under the order.
(2) REQUIREMENTS.—A contract or agreement under para-
graph (1) shall provide that—
(A) the contracting party shall develop and submit
to the Board a program or project together with a budget
that shall show the estimated costs to be incurred for
the program or project;
(B) the program or project shall become effective on
the approval of the Secretary; and
(C) the contracting party shall keep accurate records
of all transactions, account for funds received and
expended, make periodic reports to the Board of activities
conducted, and make such other reports as the Board or
the Secretary may require.
(3) PRODUCER
ORGANIZATIONS.—The order shall provide
that the Board may contract with a producer organization
for any services required in addition to the services described
in paragraph (1). The contract shall include provisions com-
parable to the provisions required by paragraph (2).
(f) BOOKS AND RECORDS OF THE BOARD.—
(1) IN GENERAL.—The order shall require the Board to—
(A) maintain such books and records (which shall be
available to the Secretary for inspection and audit) as
the Secretary may prescribe;
(B) prepare and submit to the Secretary, from time
to time, such reports as the Secretary may prescribe; and
(C) account for the receipt and disbursement of all
funds entrusted to the Board.
(2) AUDITS.—The Board shall cause the books and records
of the Board to be audited by an independent auditor at the
end of each fiscal year, and a report of the audit to be submitted
to the Secretary.
H. R. 2854—181
(A) be responsible for the collection from the producer,
and payment to the Board, of assessments required under
this subsection; and
(B) maintain a separate record of the kiwifruit of each
producer whose kiwifruit are so handled, including the
kiwifruit owned by the handler.
(4) IMPORTERS.—The assessment on imported kiwifruit
shall be paid by the importer to the United States Customs
Service at the time of entry into the United States and shall
be remitted to the Board.
(5) EXEMPTION FROM ASSESSMENT.—The following persons
or activities are exempt from an assessment under this sub-
section:
(A) A producer who produces less than 500 pounds
of kiwifruit per year.
(B) An importer who imports less than 10,000 pounds
of kiwifruit per year.
(C) A sale of kiwifruit made directly from the producer
to a consumer for a purpose other than resale.
(D) The production or importation of kiwifruit for
processing.
(6) CLAIM OF EXEMPTION.—To claim an exemption under
paragraph (5) for a particular year, a person shall—
(A) submit an application to the Board stating the
basis for the exemption and certifying that the quantity
of kiwifruit produced, imported, or sold by the person will
not exceed any poundage limitation required for the exemp-
tion in the year; or
(B) be on a list of approved processors developed by
the Board.
(c) USE OF ASSESSMENTS.—
(1) AUTHORIZED USES.—The order shall provide that funds
paid to the Board as assessments under subsection (b) may
be used by the Board—
(A) to pay for research, promotion, and consumer
information described in the budget of the Board under
subsection (a) and for other expenses incurred by the Board
in the administration of an order;
(B) to pay such other expenses for the administration,
maintenance, and functioning of the Board (including any
enforcement efforts for the collection of assessments) as
may be authorized by the Secretary, including interest
and penalties for late payments; and
(C) to fund a reserve established under section 557(d).
(2) REQUIRED USES.—The order shall provide that funds
paid to the Board as assessments under subsection (b) shall
be used by the Board—
(A) to pay the expenses incurred by the Secretary,
including salaries and expenses of Federal Government
employees, in implementing and administering the order;
and
(B) to reimburse the Secretary for any expenses
incurred by the Secretary in conducting referenda under
this subtitle.
(3) LIMITATION ON USE OF ASSESSMENTS.—Except for the
first year of operation of the Board, expenses for the administra-
H. R. 2854—200
‘‘(B) in the case of a loan that is used for multiple
purposes, the portion of the loan that refinances the prin-
cipal and interest due on a direct loan made under this
title that is outstanding on the date the loan is guaranteed.
‘‘(6) BEGINNING FARMER LOANS GUARANTEED UP TO 95 PER-
CENT.—The Secretary may guarantee not more than 95 percent
of—
‘‘(A) a farm ownership loan for acquiring a farm or
ranch to a borrower who is participating in the down pay-
ment loan program under section 310E; or
‘‘(B) an operating loan to a borrower who is participat-
ing in the down payment loan program under section 310E
that is made during the period that the borrower has
a direct loan outstanding under this subtitle for acquiring
a farm or ranch.’’.
Subtitle B—Operating Loans
SEC. 611. LIMITATION ON DIRECT OPERATING LOANS.
(a) IN GENERAL.—Section 311 of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1941) is amended by striking
subsection (c) and inserting the following:
‘‘(c) DIRECT LOANS.—
‘‘(1) IN GENERAL.—Subject to paragraph (3), the Secretary
may make a direct loan under this subtitle only to a farmer
or rancher who—
‘‘(A) is a qualified beginning farmer or rancher who
has not operated a farm or ranch, or who has operated
a farm or ranch for not more than 5 years;
‘‘(B) has not received a previous direct operating loan
made under this subtitle; or
‘‘(C) has received a previous direct operating loan made
under this subtitle during 6 or fewer years.
‘‘(2) YOUTH LOANS.—In this subsection, the term ‘direct
operating loan’ shall not include a loan made to a youth under
subsection (b).
‘‘(3) TRANSITION
RULE.—If, as of the date of enactment
of this paragraph, a farmer or rancher has received a direct
operating loan under this subtitle during each of 4 or more
previous years, the borrower shall be eligible to receive a direct
operating loan under this subtitle during 3 additional years
after the date of enactment of this paragraph.’’.
(b) YOUTH ENTERPRISES NOT FARMING OR RANCHING.—Section
311(b) of the Consolidated Farm and Rural Development Act (7
U.S.C. 1941(b)) is amended by adding at the end the following:
‘‘(4) YOUTH ENTERPRISES NOT FARMING OR RANCHING.—The
operation of an enterprise by a youth under this subsection
shall not be considered the operation of a farm or ranch under
this title.’’.
SEC. 612. PURPOSES OF OPERATING LOANS.
(a) IN GENERAL.—Section 312 of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1942) is amended to read as
follows:
H. R. 2854—201
‘‘SEC. 312. PURPOSES OF LOANS.
‘‘(a) IN GENERAL.—A direct loan may be made under this sub-
title only for—
‘‘(1) paying the costs incident to reorganizing a farm or
ranch for more profitable operation;
‘‘(2) purchasing livestock, poultry, or farm or ranch equip-
ment;
‘‘(3) purchasing feed, seed, fertilizer, insecticide, or farm
or ranch supplies, or to meet other essential farm or ranch
operating expenses, including cash rent;
‘‘(4) financing land or water development, use, or conserva-
tion;
‘‘(5) paying loan closing costs;
‘‘(6) assisting a farmer or rancher in changing the equip-
ment, facilities, or methods of operation of a farm or ranch
to comply with a standard promulgated under section 6 of
the Occupational Safety and Health Act of 1970 (29 U.S.C.
655) or a standard adopted by a State under a plan approved
under section 18 of the Act (29 U.S.C. 667), if the Secretary
determines that without assistance under this paragraph the
farmer or rancher is likely to suffer substantial economic injury
in complying with the standard;
‘‘(7) training a limited-resource borrower receiving a loan
under section 310D in maintaining records of farming and
ranching operations;
‘‘(8) training a borrower under section 359;
‘‘(9) refinancing the indebtedness of a borrower, if the bor-
rower—
‘‘(A) has refinanced a loan under this subtitle not more
than 4 times previously; and
‘‘(B)(i) is a direct loan borrower under this title at
the time of the refinancing and has suffered a qualifying
loss because of a natural disaster declared by the Secretary
under this title or a major disaster or emergency designated
by the President under the Robert T. Stafford Disaster
Relief and Emergency Assistance Act (42 U.S.C. 5121 et
seq.); or
‘‘(ii) is refinancing a debt obtained from a creditor
other than the Secretary; or
‘‘(10) providing other farm, ranch, or home needs, including
family subsistence.
‘‘(b) GUARANTEED LOANS.—A loan may be guaranteed under
this subtitle only for—
‘‘(1) paying the costs incident to reorganizing a farm or
ranch for more profitable operation;
‘‘(2) purchasing livestock, poultry, or farm or ranch equip-
ment;
‘‘(3) purchasing feed, seed, fertilizer, insecticide, or farm
or ranch supplies, or to meet other essential farm or ranch
operating expenses, including cash rent;
‘‘(4) financing land or water development, use, or conserva-
tion;
‘‘(5) refinancing indebtedness;
‘‘(6) paying loan closing costs;
‘‘(7) assisting a farmer or rancher in changing the equip-
ment, facilities, or methods of operation of a farm or ranch
to comply with a standard promulgated under section 6 of
H. R. 2854—212
‘‘(II) $1,900,000,000 shall be for guarantees
of operating loans under subtitle B.
‘‘(B) 
FISCAL
YEAR
1997.—For 
fiscal 
year 
1997,
$3,165,000,000, of which—
‘‘(i) $585,000,000 shall be for direct loans, of
which—
‘‘(I) $85,000,000 shall be for farm ownership
loans under subtitle A; and
‘‘(II) $500,000,000 shall be for operating loans
under subtitle B; and
‘‘(ii) $2,580,000,000 shall be for guaranteed loans,
of which—
‘‘(I) $630,000,000 shall be for guarantees of
farm ownership loans under subtitle A; and
‘‘(II) $1,950,000,000 shall be for guarantees
of operating loans under subtitle B.
‘‘(C) 
FISCAL
YEAR
1998.—For 
fiscal 
year 
1998,
$3,245,000,000, of which—
‘‘(i) $585,000,000 shall be for direct loans, of
which—
‘‘(I) $85,000,000 shall be for farm ownership
loans under subtitle A; and
‘‘(II) $500,000,000 shall be for operating loans
under subtitle B; and
‘‘(ii) $2,660,000,000 shall be for guaranteed loans,
of which—
‘‘(I) $660,000,000 shall be for guarantees of
farm ownership loans under subtitle A; and
‘‘(II) $2,000,000,000 shall be for guarantees
of operating loans under subtitle B.
‘‘(D) 
FISCAL
YEAR
1999.—For 
fiscal 
year 
1999,
$3,325,000,000, of which—
‘‘(i) $585,000,000 shall be for direct loans, of
which—
‘‘(I) $85,000,000 shall be for farm ownership
loans under subtitle A; and
‘‘(II) $500,000,000 shall be for operating loans
under subtitle B; and
‘‘(ii) $2,740,000,000 shall be for guaranteed loans,
of which—
‘‘(I) $690,000,000 shall be for guarantees of
farm ownership loans under subtitle A; and
‘‘(II) $2,050,000,000 shall be for guarantees
of operating loans under subtitle B.
‘‘(E) 
FISCAL
YEAR
2000.—For 
fiscal 
year 
2000,
$3,435,000,000, of which—
‘‘(i) $585,000,000 shall be for direct loans, of
which—
‘‘(I) $85,000,000 shall be for farm ownership
loans under subtitle A; and
‘‘(II) $500,000,000 shall be for operating loans
under subtitle B; and
‘‘(ii) $2,850,000,000 shall be for guaranteed loans,
of which—
‘‘(I) $750,000,000 shall be for guarantees of
farm ownership loans under subtitle A; and
H. R. 2854—213
‘‘(II) $2,100,000,000 shall be for guarantees
of operating loans under subtitle B.
‘‘(F) 
FISCAL
YEAR
2001.—For 
fiscal 
year 
2001,
$3,435,000,000, of which—
‘‘(i) $585,000,000 shall be for direct loans, of
which—
‘‘(I) $85,000,000 shall be for farm ownership
loans under subtitle A; and
‘‘(II) $500,000,000 shall be for operating loans
under subtitle B; and
‘‘(ii) $2,850,000,000 shall be for guaranteed loans,
of which—
‘‘(I) $750,000,000 shall be for guarantees of
farm ownership loans under subtitle A; and
‘‘(II) $2,100,000,000 shall be for guarantees
of operating loans under subtitle B.
‘‘(G) 
FISCAL
YEAR
2002.—For 
fiscal 
year 
2002,
$3,435,000,000, of which—
‘‘(i) $585,000,000 shall be for direct loans, of
which—
‘‘(I) $85,000,000 shall be for farm ownership
loans under subtitle A; and
‘‘(II) $500,000,000 shall be for operating loans
under subtitle B; and
‘‘(ii) $2,850,000,000 shall be for guaranteed loans,
of which—
‘‘(I) $750,000,000 shall be for guarantees of
farm ownership loans under subtitle A; and
‘‘(II) $2,100,000,000 shall be for guarantees
of operating loans under subtitle B.
‘‘(2) BEGINNING FARMERS AND RANCHERS.—
‘‘(A) DIRECT LOANS.—
‘‘(i) FARM OWNERSHIP LOANS.—
‘‘(I) IN GENERAL.—Of the amounts made avail-
able under paragraph (1) for direct farm ownership
loans, the Secretary shall reserve 70 percent for
qualified beginning farmers and ranchers.
‘‘(II) DOWN PAYMENT LOANS.—Of the amounts
reserved for a fiscal year under subclause (I), the
Secretary shall reserve 60 percent for the down
payment loan program under section 310E until
April 1 of the fiscal year.
‘‘(ii) OPERATING
LOANS.—Of the amounts made
available under paragraph (1) for direct operating
loans, the Secretary shall reserve for qualified begin-
ning farmers and ranchers—
‘‘(I) for each of fiscal years 1996 through 1998,
25 percent;
‘‘(II) for fiscal year 1999, 30 percent; and
‘‘(III) for each of fiscal years 2000 through
2002, 35 percent.
‘‘(iii) FUNDS
RESERVED
UNTIL
SEPTEMBER
1.—
Except as provided in clause (i)(II), funds reserved
for qualified beginning farmers or ranchers under this
subparagraph for a fiscal year shall be reserved only
until September 1 of the fiscal year.
‘‘(B) GUARANTEED LOANS.—
H. R. 2854—214
‘‘(i) FARM
OWNERSHIP
LOANS.—Of the amounts
made available under paragraph (1) for guarantees
of farm ownership loans, the Secretary shall reserve
25 percent for qualified beginning farmers and ranch-
ers.
‘‘(ii) OPERATING
LOANS.—Of the amounts made
available under paragraph (1) for guarantees of operat-
ing loans, the Secretary shall reserve 40 percent for
qualified beginning farmers and ranchers.
‘‘(iii) FUNDS
RESERVED
UNTIL
APRIL
1.—Funds
reserved for qualified beginning farmers or ranchers
under this subparagraph for a fiscal year shall be
reserved only until April 1 of the fiscal year.
‘‘(C) RESERVED FUNDS FOR ALL QUALIFIED BEGINNING
FARMERS AND RANCHERS.—If a qualified beginning farmer
or rancher meets the eligibility criteria for receiving a
direct or guaranteed loan under section 302, 310E, or 311,
the Secretary shall make or guarantee the loan if sufficient
funds reserved under this paragraph are available to make
or guarantee the loan.
‘‘(3) TRANSFER FOR DOWN PAYMENT LOANS.—
‘‘(A) IN GENERAL.—Notwithstanding subsection (a), sub-
ject to subparagraph (B)—
‘‘(i) beginning on August 1 of each fiscal year,
the Secretary shall use available unsubsidized guaran-
teed farm operating loan funds to provide direct farm
ownership loans approved by the Secretary to qualified
beginning farmers and ranchers under the down pay-
ment loan program established under section 310E,
if sufficient direct farm ownership loan funds are not
otherwise available; and
‘‘(ii) beginning on September 1 of each fiscal year,
the Secretary shall use available unsubsidized guaran-
teed farm operating loan funds to provide direct farm
ownership loans approved by the Secretary to qualified
beginning farmers and ranchers, if sufficient direct
farm ownership loan funds are not otherwise available.
‘‘(B) LIMITATION.—The Secretary shall limit the trans-
fer of funds under subparagraph (A) so that all guaranteed
farm operating loans that have been approved, or will
be approved, by the Secretary during the fiscal year will
be made to the extent of available amounts.
‘‘(4) TRANSFER FOR CREDIT SALES OF FARM INVENTORY PROP-
ERTY.—
‘‘(A) IN GENERAL.—Notwithstanding subsection (a), sub-
ject to subparagraphs (B) and (C), beginning on September
1 of each fiscal year, the Secretary may use available
funds made available under subtitle C for the fiscal year
to fund the credit sale of farm real estate in the inventory
of the Secretary.
‘‘(B) SUPPLEMENTAL
APPROPRIATIONS.—The transfer
authority provided under subparagraph (A) shall not apply
to any funds made available to the Secretary for any fiscal
year under an Act making supplemental appropriations.
‘‘(C) LIMITATION.—The Secretary shall limit the trans-
fer of funds under subparagraph (A) so that all emergency
disaster loans that have been approved, or will be approved,
H. R. 2854—215
by the Secretary during the fiscal year will be made to
the extent of available amounts.’’.
SEC. 642. CONTRACTS ON LOAN SECURITY PROPERTIES.
Section 349 of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1997) is amended—
(1) by striking subsection (b) and inserting the following:
‘‘(b) CONTRACTS ON LOAN SECURITY PROPERTIES.—Subject to
subsection (c), the Secretary may enter into a contract related
to real property for conservation, recreation, or wildlife purposes.’’;
(2) in subsection (c)—
(A) by striking ‘‘(c) Such easement’’ and all that follows
through ‘‘if—’’ and inserting the following:
‘‘(c) LIMITATIONS.—The Secretary may enter into a contract
under subsection (b) if—’’;
(B) in paragraph (2), by adding ‘‘and’’ at the end;
(C) in paragraph (3)—
(i) by striking subparagraph (B);
(ii) by striking ‘‘(3)(A)(i)’’ and inserting ‘‘(3)(A)’’;
(iii) by striking ‘‘Farmers Home Administration’’
and inserting ‘‘Secretary’’;
(iv) by striking ‘‘(ii) such easement’’ and inserting
‘‘(B) such contract’’; and
(v) by striking ‘‘; or’’ and inserting a period; and
(D) by striking paragraph (4);
(3) in subsection (d), by striking ‘‘easement’’ each place
it appears and inserting ‘‘contract’’;
(4) in subsection (e)—
(A) in paragraph (1)—
(i) in the matter preceding subparagraph (A), by
striking ‘‘purchase any such easement from the bor-
rower—’’ and inserting ‘‘reduce or forgive the outstand-
ing debt of a borrower—’’;
(ii) by striking ‘‘easement’’ each place it appears
and inserting ‘‘contract’’; and
(iii) by striking ‘‘Farmers Home Administration’’
each place it appears and inserting ‘‘Secretary’’; and
(B) in paragraph (2)(A), by striking ‘‘easement is
acquired’’ and inserting ‘‘contract is entered into’’;
(5) in subsection (f)—
(A) in paragraph (1), by striking ‘‘acquire easements’’
and inserting ‘‘enter into contracts’’; and
(B) in paragraphs (2) and (3), by striking ‘‘easements’’
each place it appears and inserting ‘‘contracts’’; and
(6) in subsection (g), by striking ‘‘an easement acquired’’
and inserting ‘‘a contract entered into’’.
SEC. 643. LIST OF CERTIFIED LENDERS AND INVENTORY PROPERTY
DEMONSTRATION PROJECT.
(a) IN GENERAL.—Section 351 of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1999) is amended—
(1) in subsection (f)—
(A) by striking ‘‘Each Farmers Home Administration
county supervisor’’ and inserting ‘‘The Secretary’’;
(B) by striking ‘‘approved lenders’’ and inserting ‘‘lend-
ers’’; and
(C) by striking ‘‘the Farmers Home Administration’’;
and
H. R. 2854—221
SEC. 663. EFFECTIVE DATE.
(a) IN GENERAL.—Except as provided in subsection (b), the
amendments made by this title shall become effective on the date
of enactment of this Act.
(b) DELAYED EFFECTIVE DATES.—The amendments made by
sections 601, 606, 611, 612, 622, 623, 625, 633, 640(1), 642, 645(1),
648(a), and 649 shall become effective 90 days after the date of
enactment of this Act.
(c) TRANSITION PROVISION.—The amendments made by sections
638 and 644 shall not apply with respect to a complete application
to acquire inventory property submitted prior to the date of enact-
ment of this Act.
(d) REGULATIONS.—Notwithstanding any other provision of law,
regulations to implement the amendments made by this title shall
be published as interim final rules with request for comments
and may be made effective immediately on publication.
TITLE VII—RURAL DEVELOPMENT
Subtitle A—Amendments to the Food, Agri-
culture, Conservation, and Trade Act of
1990
CHAPTER 1—GENERAL PROVISIONS
SEC. 701. RURAL INVESTMENT PARTNERSHIPS.
Subtitle B of title XXIII of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 2007 et seq.) is repealed.
SEC. 702. WATER AND WASTE FACILITY FINANCING.
Section 2322 of the Food, Agriculture, Conservation, and Trade
Act of 1990 (7 U.S.C. 1926–1) is repealed.
SEC. 703. RURAL WASTEWATER CIRCUIT RIDER PROGRAM.
Section 2324 of the Food, Agriculture, Conservation, and Trade
Act of 1990 (Public Law 101–624; 7 U.S.C. 1926 note) is repealed.
SEC. 704. TELEMEDICINE AND DISTANCE LEARNING SERVICES IN
RURAL AREAS.
Chapter 1 of subtitle D of title XXIII of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 950aaa et seq.)
is amended to read as follows:
‘‘CHAPTER 1—TELEMEDICINE AND DISTANCE
LEARNING SERVICES IN RURAL AREAS
‘‘SEC. 2331. PURPOSE.
‘‘The purpose of this chapter is to encourage and improve
telemedicine services and distance learning services in rural areas
through the use of telecommunications, computer networks, and
related advanced technologies by students, teachers, medical profes-
sionals, and rural residents.
‘‘SEC. 2332. DEFINITIONS.
‘‘In this chapter:
H. R. 2854—222
‘‘(1) CONSTRUCT.—The term ‘construct’ means to construct,
acquire, install, improve, or extend a facility or system.
‘‘(2) COST OF MONEY LOAN.—The term ‘cost of money loan’
means a loan made under this chapter bearing interest at
a rate equal to the then current cost to the Federal Government
of loans of similar maturity.
‘‘(3) SECRETARY.—The term ‘Secretary’ means the Secretary
of Agriculture.
‘‘SEC. 2333. TELEMEDICINE AND DISTANCE LEARNING SERVICES IN
RURAL AREAS.
‘‘(a) SERVICES TO RURAL AREAS.—The Secretary may provide
financial assistance for the purpose of financing the construction
of facilities and systems to provide telemedicine services and dis-
tance learning services in rural areas.
‘‘(b) FINANCIAL ASSISTANCE.—
‘‘(1) IN
GENERAL.—Financial assistance shall consist of
grants or cost of money loans, or both.
‘‘(2) FORM.—The Secretary shall determine the portion of
the financial assistance provided to a recipient that consists
of grants and the portion that consists of cost of money loans
so as to result in the maximum feasible repayment to the
Federal Government of the financial assistance, based on the
ability to repay of the recipient and full utilization of funds
made available to carry out this chapter.
‘‘(c) RECIPIENTS.—
‘‘(1) IN
GENERAL.—The Secretary may provide financial
assistance under this chapter to—
‘‘(A) entities using telemedicine services or distance
learning services; and
‘‘(B) entities providing or proposing to provide
telemedicine service or distance learning service to other
persons at rates calculated to ensure that the benefit of
the financial assistance is passed through to the other
persons.
‘‘(2) ELECTRIC OR TELECOMMUNICATIONS BORROWERS.—
‘‘(A) LOANS TO BORROWERS.—Subject to subparagraph
(B), the Secretary may provide a cost of money loan under
this chapter to a borrower of an electric or telecommuni-
cations loan under the Rural Electrification Act of 1936
(7 U.S.C. 901 et seq.). A borrower receiving a cost of money
loan under this paragraph shall—
‘‘(i) make the funds provided available to entities
that qualify under paragraph (1) for projects satisfying
the requirements of this chapter;
‘‘(ii) use the funds provided to acquire, install,
improve, or extend a system referred to in subsection
(a); or
‘‘(iii) use the funds provided to install, improve,
or extend a facility referred to in subsection (a).
‘‘(B) LIMITATIONS.—A borrower of an electric or tele-
communications loan under the Rural Electrification Act
of 1936 shall—
‘‘(i) make a system or facility funded under
subparagraph (A) available to entities that qualify
under paragraph (1); and
H. R. 2854—238
‘‘(i) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated to carry out this section $35,000,000 for each
of fiscal years 1996 through 2002.’’.
SEC. 743. EMERGENCY COMMUNITY WATER ASSISTANCE GRANT PRO-
GRAM FOR SMALLEST COMMUNITIES.
Section 306B of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1926b) is repealed.
SEC. 744. AGRICULTURAL CREDIT INSURANCE FUND.
Section 309(f) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1929(f)) is amended—
(1) by striking paragraph (1); and
(2) by redesignating paragraphs (2) through (6) as para-
graphs (1) through (5), respectively.
SEC. 745. RURAL DEVELOPMENT INSURANCE FUND.
Section 309A(g) of the Consolidated Farm and Rural Develop-
ment Act (7 U.S.C. 1929a(g)) is amended—
(1) by striking paragraph (1); and
(2) by redesignating paragraphs (2) through (8) as para-
graphs (1) through (7), respectively.
SEC. 746. INSURED WATERSHED AND RESOURCE CONSERVATION AND
DEVELOPMENT LOANS.
Section 310A of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1931) is repealed.
SEC. 747. RURAL INDUSTRIALIZATION ASSISTANCE.
(a) IN GENERAL.—Section 310B of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1932) is amended—
(1) in the first sentence of subsection (a)—
(A) by striking ‘‘and’’ at the end of clause (2); and
(B) by inserting before the period the following: ‘‘,
and (4) to facilitate economic opportunity for industries
undergoing adjustment from terminated Federal agricul-
tural price and income support programs or increased com-
petition from foreign trade’’;
(2) in subsection (b), by striking ‘‘(b)(1)’’ and all that follows
through ‘‘(2) The’’ and inserting the following:
‘‘(b) SOLID WASTE MANAGEMENT GRANTS.—The’’;
(3) in subsection (c)—
(A) by striking ‘‘(c)(1) The’’ and inserting the following:
‘‘(c) RURAL BUSINESS ENTERPRISE GRANTS.—
‘‘(1) IN GENERAL.—The’’;
(B) in paragraph (1), by inserting ‘‘(including nonprofit
entities)’’ after ‘‘private business enterprises’’;
(C) in paragraph (2)—
(i) by striking ‘‘(2) The’’ and inserting the following:
‘‘(2) PASSENGER TRANSPORTATION SERVICES OR FACILITIES.—
The’’; and
(ii) by striking ‘‘make grants’’ and inserting ‘‘award
grants on a competitive basis’’; and
(D) by adding at the end the following:
‘‘(3) GRANTS TO AID INDUSTRIES IN ADJUSTING TO TERMI-
NATED FEDERAL AGRICULTURAL PROGRAMS OR INCREASED FOR-
EIGN
COMPETITION.—The Secretary may make grants under
this section to facilitate economic opportunity for industries
H. R. 2854—281
natural plant material for industrial, medical, and agricultural
applications; and
‘‘(F) to participate with colleges and universities, other
Federal agencies, and private sector entities in conducting
research described in subparagraph (E).’’.
SEC. 820. AQUACULTURE ASSISTANCE PROGRAMS.
(a) DEFINITION.—Section 1404(3) of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3103(3)) is amended by inserting ‘‘ornamental fish,’’ after ‘‘reptile,’’.
(b) REPORTS.—Section 1475 of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3322) is amended—
(1) by striking subsection (e); and
(2) by redesignating subsections (f) and (g) as subsections
(e) and (f), respectively.
(c) AUTHORIZATION
OF
APPROPRIATIONS
FOR
AQUACULTURE
RESEARCH FACILITIES.—Section 1476(b) of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3323(b)) is amended by striking ‘‘1995’’ and inserting ‘‘1997’’.
(d) AUTHORIZATION
OF APPROPRIATIONS
FOR RESEARCH
AND
EXTENSION.—Section 1477 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3324) is
amended by striking ‘‘1995’’ and inserting ‘‘1997’’.
SEC. 821. AUTHORIZATION OF APPROPRIATIONS FOR RANGELAND
RESEARCH.
Section 1483(a) of the National Agricultural Research, Exten-
sion, and Teaching Policy Act of 1977 (7 U.S.C. 3336(a)) is amended
by striking ‘‘1995’’ and inserting ‘‘1997’’.
Subtitle B—Modification and Extension of
Activities Under 1990 Act
SEC. 831. WATER QUALITY RESEARCH, EDUCATION, AND COORDINA-
TION.
Section 1481(d) of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 5501(d)) is amended by striking ‘‘1995’’
and inserting ‘‘1997’’.
SEC. 832. NATIONAL GENETICS RESOURCES PROGRAM.
(a) FUNCTIONS.—Section 1632(d) of the Food, Agriculture, Con-
servation, and Trade Act of 1990 (7 U.S.C. 5841(d)) is amended
by striking paragraph (4) and inserting the following:
‘‘(4) unless otherwise prohibited by law, have the right
to make available on request, without charge and without
regard to the country from which the request originates, the
genetic material that the program assembles;’’.
(b) AUTHORIZATION OF APPROPRIATIONS.—Section 1635(b) of the
Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C.
5844(b)) is amended by striking ‘‘1995’’ and inserting ‘‘1997’’.
SEC. 833. NATIONAL AGRICULTURAL WEATHER INFORMATION SYSTEM.
Section 1641(c) of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 5855(c)) is amended by striking ‘‘1995’’
and inserting ‘‘1997’’.
H. R. 2854—282
SEC. 834. LIVESTOCK PRODUCT SAFETY AND INSPECTION PROGRAM.
Section 1670(e) of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 5923(e)) is amended by striking ‘‘1995’’
and inserting ‘‘1997’’.
SEC. 835. PLANT GENOME MAPPING PROGRAM.
Section 1671(g) of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 5924(g)) is amended by inserting
‘‘for fiscal years 1996 and 1997’’ after ‘‘appropriated’’.
SEC. 836. CERTAIN SPECIALIZED RESEARCH PROGRAMS.
Subsections (d)(4), (e)(4), and (i) of section 1672 of the Food,
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5925)
are each amended by striking ‘‘1995’’ and inserting ‘‘1997’’.
SEC. 837. AGRICULTURAL TELECOMMUNICATIONS PROGRAM.
Section 1673(h) of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 5926(h)) is amended by striking ‘‘1995’’
and inserting ‘‘1997’’.
SEC. 838. NATIONAL CENTERS FOR AGRICULTURAL PRODUCT QUALITY
RESEARCH.
(a) PURPOSES OF NATIONAL CENTERS.—Section 1675(a) of the
Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C.
5928(a)) is amended—
(1) by redesignating paragraphs (5) and (6) as paragraphs
(6) and (7), respectively; and
(2) by inserting after paragraph (4) the following:
‘‘(5) enhance agricultural competitiveness through product
quality research and technology implementation;’’.
(b) REGIONAL BASIS OF CENTERS.—Section 1675(b) of the Food,
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5928(b))
is amended by striking paragraph (1) and inserting the following:
‘‘(1) REGIONAL BASIS.—The centers shall be regionally based
units that conduct a broad spectrum of research, development,
and education programs to enhance the competitiveness, qual-
ity, safety and wholesomeness of agricultural products.’’.
(c) PROGRAM PLAN AND REVIEW.—Section 1675(d) of the Food,
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5928(b))
is amended—
(1) in paragraph (1), by striking the second sentence; and
(2) in paragraph (2), by striking ‘‘, but not less’’ and all
that follows through ‘‘the Secretary’’.
(d) AUTHORIZATION OF APPROPRIATIONS.—Section 1675(g)(1) of
the Food, Agriculture, Conservation, and Trade Act of 1990 (7
U.S.C. 5928(g)(1)) is amended by striking ‘‘1995’’ and inserting
‘‘1997’’.
SEC. 839. RED MEAT SAFETY RESEARCH CENTER.
Section 1676 of the Food, Agriculture, Conservation, and Trade
Act of 1990 (7 U.S.C. 5929) is amended to read as follows:
‘‘SEC. 1676. RED MEAT SAFETY RESEARCH CENTER.
‘‘(a) ESTABLISHMENT OF CENTER.—The Secretary of Agriculture
shall award a grant, on a competitive basis, to a research facility
described in subsection (b) to establish a red meat safety research
center.