H. R. 2419—493 
shall update the plan on an annual basis and following any major 
disaster relating to which the Administrator declares eligibility 
for additional disaster assistance under section 7(b)(9). 
‘‘(c) KNOWLEDGE REQUIRED.—The Administrator shall carry out 
subsections (a) and (b) through an individual with substantial 
knowledge in the field of disaster readiness and emergency 
response. 
‘‘(d) REPORT.—The Administrator shall include a report on the 
plan whenever the Administration submits the report required by 
section 43.’’. 
SEC. 12076. PLANS TO SECURE SUFFICIENT OFFICE SPACE. 
The Small Business Act is amended by inserting after section 
40, as added by this Act, the following: 
‘‘SEC. 41. PLANS TO SECURE SUFFICIENT OFFICE SPACE. 
‘‘(a) PLANS REQUIRED.—The Administrator shall develop long- 
term plans to secure sufficient office space to accommodate an 
expanded workforce in times of disaster. 
‘‘(b) REPORT.—The Administrator shall include a report on the 
plans developed under subsection (a) each time the Administration 
submits a report required under section 43.’’. 
SEC. 12077. APPLICANTS THAT HAVE BECOME A MAJOR SOURCE OF 
EMPLOYMENT 
DUE 
TO 
CHANGED 
ECONOMIC 
CIR-
CUMSTANCES. 
Section 7(b)(3)(E) of the Small Business Act (15 U.S.C. 
636(b)(3)(E)) is amended by inserting after ‘‘constitutes’’ the fol-
lowing: ‘‘, or have become due to changed economic circumstances,’’. 
SEC. 12078. DISASTER LOAN AMOUNTS. 
(a) INCREASED LOAN CAPS.—Section 7(b) of the Small Business 
Act (15 U.S.C. 636(b)) is amended by inserting immediately after 
paragraph (7), as added by this Act, the following: 
‘‘(8) INCREASED LOAN CAPS.— 
‘‘(A) AGGREGATE LOAN AMOUNTS.—Except as provided 
in subparagraph (B), and notwithstanding any other provi-
sion of law, the aggregate loan amount outstanding and 
committed to a borrower under this subsection may not 
exceed $2,000,000. 
‘‘(B) WAIVER AUTHORITY.—The Administrator may, at 
the discretion of the Administrator, increase the aggregate 
loan amount under subparagraph (A) for loans relating 
to a disaster to a level established by the Administrator, 
based on appropriate economic indicators for the region 
in which that disaster occurred.’’. 
(b) DISASTER MITIGATION.— 
(1) IN GENERAL.—Section 7(b)(1)(A) of the Small Business 
Act (15 U.S.C. 636(b)(1)(A)) is amended by inserting ‘‘of the 
aggregate costs of such damage or destruction (whether or 
not compensated for by insurance or otherwise)’’ after ‘‘20 per 
centum’’. 
(2) EFFECTIVE DATE.—The amendment made by paragraph 
(1) shall apply with respect to a loan or guarantee made after 
the date of enactment of this Act. 
(c) TECHNICAL AMENDMENTS.—Section 7(b) of the Small Busi-
ness Act (15 U.S.C. 636(b)) is amended—
H. R. 2419—494 
(1) in the matter preceding paragraph (1), by striking ‘‘the, 
Administration’’ and inserting ‘‘the Administration’’; and 
(2) in the undesignated matter at the end— 
(A) by striking ‘‘, (2), and (4)’’ and inserting ‘‘and (2)’’; 
and 
(B) by striking ‘‘, (2), or (4)’’ and inserting ‘‘(2)’’. 
SEC. 12079. SMALL BUSINESS BONDING THRESHOLD. 
(a) IN GENERAL.—Except as provided in subsection (b), and 
notwithstanding any other provision of law, for any procurement 
related to a major disaster, the Administrator may, upon such 
terms and conditions as the Administrator may prescribe, guarantee 
and enter into commitments to guarantee any surety against loss 
resulting from a breach of the terms of a bid bond, payment bond, 
performance bond, or bonds ancillary thereto, by a principal on 
any total work order or contract amount at the time of bond execu-
tion that does not exceed $5,000,000. 
(b) INCREASE OF AMOUNT.—Upon request of the head of any 
Federal agency other than the Administration involved in 
reconstruction efforts in response to a major disaster, the Adminis-
trator may guarantee and enter into a commitment to guarantee 
any security against loss under subsection (a) on any total work 
order or contract amount at the time of bond execution that does 
not exceed $10,000,000. 
(c) LIMITATION ON USE OF OTHER FUNDS.—The Administrator 
may carry out this section only with amounts appropriated in 
advance specifically to carry out this section. 
PART II—DISASTER LENDING 
SEC. 12081. ELIGIBILITY FOR ADDITIONAL DISASTER ASSISTANCE. 
Section 7(b) of the Small Business Act (15 U.S.C. 636(b)) is 
amended by inserting immediately after paragraph (8), as added 
by this Act, the following: 
‘‘(9) DECLARATION OF ELIGIBILITY FOR ADDITIONAL DISASTER 
ASSISTANCE.— 
‘‘(A) IN GENERAL.—If the President declares a major 
disaster, the Administrator may declare eligibility for addi-
tional disaster assistance in accordance with this para-
graph. 
‘‘(B) THRESHOLD.—A major disaster for which the 
Administrator declares eligibility for additional disaster 
assistance under this paragraph shall— 
‘‘(i) have resulted in extraordinary levels of casual-
ties or damage or disruption severely affecting the 
population (including mass evacuations), infrastruc-
ture, environment, economy, national morale, or 
government functions in an area; 
‘‘(ii) be comparable to the description of a cata-
strophic incident in the National Response Plan of 
the Administration, or any successor thereto, unless 
there is no successor to such plan, in which case this 
clause shall have no force or effect; and 
‘‘(iii) be of such size and scope that— 
‘‘(I) the disaster assistance programs under 
the other paragraphs under this subsection are
H. R. 2419—495 
incapable of providing adequate and timely assist-
ance to individuals or business concerns located 
within the disaster area; or 
‘‘(II) a significant number of business concerns 
outside the disaster area have suffered disaster- 
related substantial economic injury as a result of 
the incident.’’. 
SEC. 12082. ADDITIONAL ECONOMIC INJURY DISASTER LOAN ASSIST-
ANCE. 
Paragraph (9) of section 7(b) of the Small Business Act (15 
U.S.C. 636(b)), as added by section 12081, is amended by adding 
at the end the following: 
‘‘(C) ADDITIONAL
ECONOMIC
INJURY
DISASTER
LOAN 
ASSISTANCE.— 
‘‘(i) IN
GENERAL.—If the Administrator declares 
eligibility for additional disaster assistance under this 
paragraph, the Administrator may make such loans 
under this subparagraph (either directly or in coopera-
tion with banks or other lending institutions through 
agreements to participate on an immediate or deferred 
basis) as the Administrator determines appropriate to 
eligible small business concerns located anywhere in 
the United States. 
‘‘(ii) PROCESSING TIME.— 
‘‘(I) IN GENERAL.—If the Administrator deter-
mines that the average processing time for applica-
tions for disaster loans under this subparagraph 
relating to a specific major disaster is more than 
15 days, the Administrator shall give priority to 
the processing of such applications submitted by 
eligible small business concerns located inside the 
disaster area, until the Administrator determines 
that the average processing time for such applica-
tions is not more than 15 days. 
‘‘(II) SUSPENSION OF APPLICATIONS FROM OUT-
SIDE DISASTER AREA.—If the Administrator deter-
mines that the average processing time for applica-
tions for disaster loans under this subparagraph 
relating to a specific major disaster is more than 
30 days, the Administrator shall suspend the proc-
essing of such applications submitted by eligible 
small business concerns located outside the dis-
aster area, until the Administrator determines 
that the average processing time for such applica-
tions is not more than 15 days. 
‘‘(iii) LOAN TERMS.—A loan under this subpara-
graph shall be made on the same terms as a loan 
under paragraph (2). 
‘‘(D) DEFINITIONS.—In this paragraph— 
‘‘(i) the term ‘disaster area’ means the area for 
which the applicable major disaster was declared; 
‘‘(ii) the term ‘disaster-related substantial economic 
injury’ means economic harm to a business concern 
that results in the inability of the business concern 
to— 
‘‘(I) meet its obligations as it matures;
H. R. 2419—496 
‘‘(II) meet its ordinary and necessary operating 
expenses; or 
‘‘(III) market, produce, or provide a product 
or service ordinarily marketed, produced, or pro-
vided by the business concern because the business 
concern relies on materials from the disaster area 
or sells or markets in the disaster area; and 
‘‘(iii) the term ‘eligible small business concern’ 
means a small business concern— 
‘‘(I) that has suffered disaster-related substan-
tial economic injury as a result of the applicable 
major disaster; and 
‘‘(II)(aa) for which not less than 25 percent 
of the market share of that small business concern 
is from business transacted in the disaster area; 
‘‘(bb) for which not less than 25 percent of 
an input into a production process of that small 
business concern is from the disaster area; or 
‘‘(cc) that relies on a provider located in the 
disaster area for a service that is not readily avail-
able elsewhere.’’. 
SEC. 12083. PRIVATE DISASTER LOANS. 
(a) IN GENERAL.—Section 7 of the Small Business Act (15 
U.S.C. 636) is amended by inserting after subsection (b) the fol-
lowing: 
‘‘(c) PRIVATE DISASTER LOANS.— 
‘‘(1) DEFINITIONS.—In this subsection— 
‘‘(A) the term ‘disaster area’ means any area for which 
the President declared a major disaster relating to which 
the Administrator declares eligibility for additional disaster 
assistance under subsection (b)(9), during the period of 
that major disaster declaration; 
‘‘(B) the term ‘eligible individual’ means an individual 
who is eligible for disaster assistance under subsection 
(b)(1) relating to a major disaster relating to which the 
Administrator declares eligibility for additional disaster 
assistance under subsection (b)(9); 
‘‘(C) the term ‘eligible small business concern’ means 
a business concern that is— 
‘‘(i) a small business concern, as defined under 
this Act; or 
‘‘(ii) a small business concern, as defined in section 
103 of the Small Business Investment Act of 1958; 
‘‘(D) the term ‘preferred lender’ means a lender partici-
pating in the Preferred Lender Program; 
‘‘(E) the term ‘Preferred Lender Program’ has the 
meaning given that term in subsection (a)(2)(C)(ii); and 
‘‘(F) the term ‘qualified private lender’ means any pri-
vately-owned bank or other lending institution that— 
‘‘(i) is not a preferred lender; and 
‘‘(ii) the Administrator determines meets the cri-
teria established under paragraph (10). 
‘‘(2) PROGRAM REQUIRED.—The Administrator shall carry 
out a program, to be known as the Private Disaster Assistance 
program, under which the Administration may guarantee 
timely payment of principal and interest, as scheduled, on
H. R. 2419—497 
any loan made to an eligible small business concern located 
in a disaster area and to an eligible individual. 
‘‘(3) USE OF LOANS.—A loan guaranteed by the Adminis-
trator under this subsection may be used for any purpose 
authorized under subsection (b). 
‘‘(4) ONLINE APPLICATIONS.— 
‘‘(A) ESTABLISHMENT.—The Administrator may estab-
lish, directly or through an agreement with another entity, 
an online application process for loans guaranteed under 
this subsection. 
‘‘(B) OTHER FEDERAL ASSISTANCE.—The Administrator 
may coordinate with the head of any other appropriate 
Federal agency so that any application submitted through 
an online application process established under this para-
graph may be considered for any other Federal assistance 
program for disaster relief. 
‘‘(C) CONSULTATION.—In establishing an online applica-
tion process under this paragraph, the Administrator shall 
consult with appropriate persons from the public and pri-
vate sectors, including private lenders. 
‘‘(5) MAXIMUM AMOUNTS.— 
‘‘(A) GUARANTEE
PERCENTAGE.—The Administrator 
may guarantee not more than 85 percent of a loan under 
this subsection. 
‘‘(B) LOAN AMOUNT.—The maximum amount of a loan 
guaranteed under this subsection shall be $2,000,000. 
‘‘(6) TERMS
AND
CONDITIONS.—A loan guaranteed under 
this subsection shall be made under the same terms and condi-
tions as a loan under subsection (b). 
‘‘(7) LENDERS.— 
‘‘(A) IN GENERAL.—A loan guaranteed under this sub-
section made to— 
‘‘(i) a qualified individual may be made by a pre-
ferred lender; and 
‘‘(ii) a qualified small business concern may be 
made by a qualified private lender or by a preferred 
lender that also makes loans to qualified individuals. 
‘‘(B) COMPLIANCE.—If the Administrator determines 
that a preferred lender knowingly failed to comply with 
the underwriting standards for loans guaranteed under 
this subsection or violated the terms of the standard oper-
ating procedure agreement between that preferred lender 
and the Administration, the Administrator shall do 1 or 
more of the following: 
‘‘(i) Exclude the preferred lender from participating 
in the program under this subsection. 
‘‘(ii) Exclude the preferred lender from partici-
pating in the Preferred Lender Program for a period 
of not more than 5 years. 
‘‘(8) FEES.— 
‘‘(A) IN GENERAL.—The Administrator may not collect 
a guarantee fee under this subsection. 
‘‘(B) ORIGINATION FEE.—The Administrator may pay 
a qualified private lender or preferred lender an origination 
fee for a loan guaranteed under this subsection in an 
amount agreed upon in advance between the qualified pri-
vate lender or preferred lender and the Administrator.
H. R. 2419—498 
‘‘(9) DOCUMENTATION.—A qualified private lender or pre-
ferred lender may use its own loan documentation for a loan 
guaranteed by the Administrator under this subsection, to the 
extent authorized by the Administrator. The ability of a lender 
to use its own loan documentation for a loan guaranteed under 
this subsection shall not be considered part of the criteria 
for becoming a qualified private lender under the regulations 
promulgated under paragraph (10). 
‘‘(10) IMPLEMENTATION REGULATIONS.— 
‘‘(A) IN
GENERAL.—Not later than 1 year after the 
date of enactment of the Small Business Disaster Response 
and Loan Improvements Act of 2008, the Administrator 
shall issue final regulations establishing permanent criteria 
for qualified private lenders. 
‘‘(B) REPORT TO CONGRESS.—Not later than 6 months 
after the date of enactment of the Small Business Disaster 
Response and Loan Improvements Act of 2008, the 
Administrator shall submit a report on the progress of 
the regulations required by subparagraph (A) to the Com-
mittee on Small Business and Entrepreneurship of the 
Senate and the Committee on Small Business of the House 
of Representatives. 
‘‘(11) AUTHORIZATION OF APPROPRIATIONS.— 
‘‘(A) IN GENERAL.—Amounts necessary to carry out this 
subsection shall be made available from amounts appro-
priated to the Administration to carry out subsection (b). 
‘‘(B) AUTHORITY TO REDUCE INTEREST RATES AND OTHER 
TERMS
AND
CONDITIONS.—Funds appropriated to the 
Administration to carry out this subsection, may be used 
by the Administrator to meet the loan terms and conditions 
specified in paragraph (6). 
‘‘(12) PURCHASE OF LOANS.—The Administrator may enter 
into an agreement with a qualified private lender or preferred 
lender to purchase any loan guaranteed under this subsection.’’. 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall apply to any major disaster declared on or after the date 
of enactment of this Act. 
SEC. 12084. IMMEDIATE DISASTER ASSISTANCE PROGRAM. 
The Small Business Act is amended by inserting after section 
41, as added by this Act, the following: 
‘‘SEC. 42. IMMEDIATE DISASTER ASSISTANCE PROGRAM. 
‘‘(a) PROGRAM REQUIRED.—The Administrator shall carry out 
a program, to be known as the Immediate Disaster Assistance 
program, under which the Administration participates on a deferred 
(guaranteed) basis in 85 percent of the balance of the financing 
outstanding at the time of disbursement of the loan if such balance 
is less than or equal to $25,000 for businesses affected by a disaster. 
‘‘(b) ELIGIBILITY REQUIREMENT.—To receive a loan guaranteed 
under subsection (a), the applicant shall also apply for, and meet 
basic eligibility standards for, a loan under subsection (b) or (c) 
of section 7. 
‘‘(c) USE OF PROCEEDS.—A person who receives a loan under 
subsection (b) or (c) of section 7 shall use the proceeds of that 
loan to repay all loans guaranteed under subsection (a), if any, 
before using the proceeds for any other purpose. 
‘‘(d) LOAN TERMS.—
H. R. 2419—499 
‘‘(1) NO PREPAYMENT PENALTY.—There shall be no prepay-
ment penalty on a loan guaranteed under subsection (a). 
‘‘(2) REPAYMENT.—A person who receives a loan guaranteed 
under subsection (a) and who is disapproved for a loan under 
subsection (b) or (c) of section 7, as the case may be, shall 
repay the loan guaranteed under subsection (a) not later than 
the date established by the Administrator, which may not be 
earlier than 10 years after the date on which the loan guaran-
teed under subsection is disbursed. 
‘‘(e) APPROVAL
OR
DISAPPROVAL.—The Administrator shall 
ensure that each applicant for a loan under the program receives 
a decision approving or disapproving of the application within 36 
hours after the Administration receives the application.’’. 
SEC. 12085. EXPEDITED DISASTER ASSISTANCE LOAN PROGRAM. 
(a) DEFINITION.—In this section, the term ‘‘program’’ means 
the expedited disaster assistance business loan program established 
under subsection (b). 
(b) CREATION OF PROGRAM.—The Administrator shall take such 
administrative action as is necessary to establish and implement 
an expedited disaster assistance business loan program under which 
the Administration may, on an expedited basis, guarantee timely 
payment of principal and interest, as scheduled on any loan made 
to an eligible small business concern under paragraph (9) of section 
7(b) of the Small Business Act (15 U.S.C. 636(b)), as added by 
this Act. 
(c) CONSULTATION REQUIRED.—In establishing the program, the 
Administrator shall consult with— 
(1) appropriate personnel of the Administration (including 
District Office personnel of the Administration); 
(2) appropriate technical assistance providers (including 
small business development centers); 
(3) appropriate lenders and credit unions; 
(4) the Committee on Small Business and Entrepreneurship 
of the Senate; and 
(5) the Committee on Small Business of the House of Rep-
resentatives. 
(d) RULES.— 
(1) IN
GENERAL.—Not later than 1 year after the date 
of enactment of this Act, the Administrator shall issue rules 
in final form establishing and implementing the program in 
accordance with this section. Such rules shall apply as provided 
for in this section, beginning 90 days after their issuance in 
final form. 
(2) CONTENTS.—The rules promulgated under paragraph 
(1) shall— 
(A) identify whether appropriate uses of funds under 
the program may include— 
(i) paying employees; 
(ii) paying bills and other financial obligations; 
(iii) making repairs; 
(iv) purchasing inventory; 
(v) restarting or operating a small business concern 
in the community in which it was conducting oper-
ations prior to the applicable major disaster, or to 
a neighboring area, county, or parish in the disaster 
area; or
H. R. 2419—500 
(vi) covering additional costs until the small busi-
ness concern is able to obtain funding through insur-
ance claims, Federal assistance programs, or other 
sources; and 
(B) set the terms and conditions of any loan made 
under the program, subject to paragraph (3). 
(3) TERMS AND CONDITIONS.—A loan guaranteed by the 
Administration under this section— 
(A) shall be for not more than $150,000; 
(B) shall be a short-term loan, not to exceed 180 days, 
except that the Administrator may extend such term as 
the Administrator determines necessary or appropriate on 
a case-by-case basis; 
(C) shall have an interest rate not to exceed 300 basis 
points above the interest rate established by the Board 
of Governors of the Federal Reserve System that 1 bank 
charges another for reserves that are lent on an overnight 
basis on the date the loan is made; 
(D) shall have no prepayment penalty; 
(E) may only be made to a borrower that meets the 
requirements for a loan under section 7(b) of the Small 
Business Act (15 U.S.C. 636(b)), as amended by this Act; 
(F) may be refinanced as part of any subsequent dis-
aster assistance provided under section 7(b) of the Small 
Business Act (15 U.S.C. 636(b)), as amended by this Act; 
(G) may receive expedited loss verification and loan 
processing, if the applicant is— 
(i) a major source of employment in the disaster 
area (which shall be determined in the same manner 
as under section 7(b)(3)(B) of the Small Business Act 
(15 U.S.C. 636(b)(3)(B))); or 
(ii) vital to recovery efforts in the region (including 
providing 
debris 
removal 
services, 
manufactured 
housing, or building materials); and 
(H) shall be subject to such additional terms as the 
Administrator determines necessary or appropriate. 
(e) REPORT TO CONGRESS.—Not later than 5 months after the 
date of enactment of this Act, the Administrator shall report to 
the Committee on Small Business and Entrepreneurship of the 
Senate and the Committee on Small Business of the House of 
Representatives on the progress of the Administrator in establishing 
the program. 
(f) AUTHORIZATION.—There are authorized to be appropriated 
to the Administrator such sums as are necessary to carry out 
this section. 
SEC. 12086. GULF COAST DISASTER LOAN REFINANCING PROGRAM. 
(a) IN GENERAL.—The Administrator may carry out a program 
to refinance Gulf Coast disaster loans (in this section referred 
to as the ‘‘program’’). 
(b) TERMS.—The terms of a Gulf Coast disaster loan refinanced 
under the program shall be identical to the terms of the original 
loan, except that the Administrator may provide an option to defer 
repayment on the loan. A deferment under the program shall end 
not later than 4 years after the date on which the initial disburse-
ment under the original loan was made.
H. R. 2419—501 
(c) AMOUNT.—The amount of a Gulf Coast disaster loan 
refinanced under the program shall not exceed the amount of the 
original loan. 
(d) DISCLOSURE OF ACCRUED INTEREST.—If the Administrator 
provides an option to defer repayment under the program, the 
Administrator shall disclose the accrued interest that must be paid 
under the option. 
(e) DEFINITION.—In this section, the term ‘‘Gulf Coast disaster 
loan’’ means a loan— 
(1) made under section 7(b) of the Small Business Act 
(15 U.S.C. 636(b)); 
(2) in response to Hurricane Katrina of 2005, Hurricane 
Rita of 2005, or Hurricane Wilma of 2005; and 
(3) to a small business concern located in a county or 
parish designated by the Administrator as a disaster area by 
reason of a hurricane described in paragraph (2) under disaster 
declaration 10176, 10177, 10178, 10179, 10180, 10181, 10203, 
10204, 10205, 10206, 10222, or 10223. 
(f) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated such sums as may be necessary to carry out 
this section. 
PART III—MISCELLANEOUS 
SEC. 12091. REPORTS ON DISASTER ASSISTANCE. 
(a) MONTHLY ACCOUNTING REPORT TO CONGRESS.— 
(1) REPORTING REQUIREMENTS.—Not later than the fifth 
business day of each month during the applicable period for 
a major disaster, the Administrator shall submit to the Com-
mittee on Small Business and Entrepreneurship and the Com-
mittee on Appropriations of the Senate and to the Committee 
on Small Business and the Committee on Appropriations of 
the House of Representatives a report on the operation of 
the disaster loan program authorized under section 7 of the 
Small Business Act (15 U.S.C. 636) for that major disaster 
during the preceding month. 
(2) CONTENTS.—Each report submitted under paragraph 
(1) shall include— 
(A) the daily average lending volume, in number of 
loans and dollars, and the percent by which each category 
has increased or decreased since the previous report under 
paragraph (1); 
(B) the weekly average lending volume, in number 
of loans and dollars, and the percent by which each category 
has increased or decreased since the previous report under 
paragraph (1); 
(C) the amount of funding spent over the month for 
loans, both in appropriations and program level, and the 
percent by which each category has increased or decreased 
since the previous report under paragraph (1); 
(D) the amount of funding available for loans, both 
in appropriations and program level, and the percent by 
which each category has increased or decreased since the 
previous report under paragraph (1), noting the source 
of any additional funding; 
(E) an estimate of how long the available funding 
for such loans will last, based on the spending rate;
H. R. 2419—502 
(F) the amount of funding spent over the month for 
staff, along with the number of staff, and the percent 
by which each category has increased or decreased since 
the previous report under paragraph (1); 
(G) the amount of funding spent over the month for 
administrative costs, and the percent by which such 
spending has increased or decreased since the previous 
report under paragraph (1); 
(H) the amount of funding available for salaries and 
expenses combined, and the percent by which such funding 
has increased or decreased since the previous report under 
paragraph (1), noting the source of any additional funding; 
and 
(I) an estimate of how long the available funding for 
salaries and expenses will last, based on the spending 
rate. 
(b) WEEKLY DISASTER UPDATES
TO CONGRESS
FOR PRESI-
DENTIALLY DECLARED DISASTERS.— 
(1) IN
GENERAL.—Each week during a disaster update 
period, the Administration shall submit to the Committee on 
Small Business and Entrepreneurship of the Senate and to 
the Committee on Small Business of the House of Representa-
tives a report on the operation of the disaster loan program 
of the Administration for the area in which the President 
declared a major disaster. 
(2) CONTENTS.—Each report submitted under paragraph 
(1) shall include— 
(A) the number of Administration staff performing loan 
processing, field inspection, and other duties for the 
declared disaster, and the allocations of such staff in the 
disaster field offices, disaster recovery centers, workshops, 
and other Administration offices nationwide; 
(B) the daily number of applications received from 
applicants in the relevant area, as well as a breakdown 
of such figures by State; 
(C) the daily number of applications pending applica-
tion entry from applicants in the relevant area, as well 
as a breakdown of such figures by State; 
(D) the daily number of applications withdrawn by 
applicants in the relevant area, as well as a breakdown 
of such figures by State; 
(E) the daily number of applications summarily 
declined by the Administration from applicants in the rel-
evant area, as well as a breakdown of such figures by 
State; 
(F) the daily number of applications declined by the 
Administration from applicants in the relevant area, as 
well as a breakdown of such figures by State; 
(G) the daily number of applications in process from 
applicants in the relevant area, as well as a breakdown 
of such figures by State; 
(H) the daily number of applications approved by the 
Administration from applicants in the relevant area, as 
well as a breakdown of such figures by State; 
(I) the daily dollar amount of applications approved 
by the Administration from applicants in the relevant area, 
as well as a breakdown of such figures by State;
H. R. 2419—503 
(J) the daily amount of loans dispersed, both partially 
and fully, by the Administration to applicants in the rel-
evant area, as well as a breakdown of such figures by 
State; 
(K) the daily dollar amount of loans disbursed, both 
partially and fully, from the relevant area, as well as 
a breakdown of such figures by State; 
(L) the number of applications approved, including 
dollar amount approved, as well as applications partially 
and fully disbursed, including dollar amounts, since the 
last report under paragraph (1); and 
(M) the declaration date, physical damage closing date, 
economic injury closing date, and number of counties 
included in the declaration of a major disaster. 
(c) PERIODS WHEN ADDITIONAL DISASTER ASSISTANCE IS MADE 
AVAILABLE.— 
(1) IN GENERAL.—During any period for which the Adminis-
trator declares eligibility for additional disaster assistance 
under paragraph (9) of section 7(b) of the Small Business Act 
(15 U.S.C. 632(b)), as amended by this Act, the Administrator 
shall, on a monthly basis, submit to the Committee on Small 
Business and Entrepreneurship of the Senate and to the Com-
mittee on Small Business of the House of Representatives a 
report on the disaster assistance operations of the Administra-
tion with respect to the applicable major disaster. 
(2) CONTENTS.—Each report submitted under paragraph 
(1) shall specify— 
(A) the number of applications for disaster assistance 
distributed; 
(B) the number of applications for disaster assistance 
received; 
(C) the average time for the Administration to approve 
or disapprove an application for disaster assistance; 
(D) the amount of disaster loans approved; 
(E) the average time for initial disbursement of disaster 
loan proceeds; and 
(F) the amount of disaster loan proceeds disbursed. 
(d) NOTICE OF THE NEED FOR SUPPLEMENTAL FUNDS.—On the 
same date that the Administrator notifies any committee of the 
Senate or the House of Representatives that supplemental funding 
is necessary for the disaster loan program of the Administration 
in any fiscal year, the Administrator shall notify in writing the 
Committee on Small Business and Entrepreneurship of the Senate 
and the Committee on Small Business of the House of Representa-
tives regarding the need for supplemental funds for that loan pro-
gram. 
(e) REPORT ON CONTRACTING.— 
(1) IN GENERAL.—Not later than 6 months after the date 
on which the President declares a major disaster, and every 
6 months thereafter until the date that is 18 months after 
the date on which the major disaster was declared, the Adminis-
trator shall submit a report to the Committee on Small Business 
and Entrepreneurship of the Senate and to the Committee 
on Small Business of the House of Representatives regarding 
Federal contracts awarded as a result of that major disaster. 
(2) CONTENTS.—Each report submitted under paragraph 
(1) shall include—
H. R. 2419—504 
(A) the total number of contracts awarded as a result 
of that major disaster; 
(B) the total number of contracts awarded to small 
business concerns as a result of that major disaster; 
(C) the total number of contracts awarded to women 
and minority-owned businesses as a result of that major 
disaster; and 
(D) the total number of contracts awarded to local 
businesses as a result of that major disaster. 
(f) REPORT ON LOAN APPROVAL RATE.— 
(1) IN GENERAL.—Not later than 6 months after the date 
of enactment of this Act, the Administrator shall submit a 
report to the Committee on Small Business and Entrepreneur-
ship of the Senate and the Committee on Small Business of 
the House of Representatives detailing how the Administration 
can improve the processing of applications under the disaster 
loan program of the Administration. 
(2) CONTENTS.—The report submitted under paragraph (1) 
shall include— 
(A) recommendations, if any, regarding— 
(i) staffing levels during a major disaster; 
(ii) how to improve the process for processing, 
approving, and disbursing loans under the disaster 
loan program of the Administration, to ensure that 
the maximum assistance is provided to victims in a 
timely manner; 
(iii) the viability of using alternative methods for 
assessing the ability of an applicant to repay a loan, 
including the credit score of the applicant on the day 
before the date on which the disaster for which the 
applicant is seeking assistance was declared; 
(iv) methods, if any, for the Administration to expe-
dite loss verification and loan processing of disaster 
loans during a major disaster for businesses affected 
by, and located in the area for which the President 
declared, the major disaster that are a major source 
of employment in the area or are vital to recovery 
efforts in the region (including providing debris 
removal services, manufactured housing, or building 
materials); 
(v) legislative changes, if any, needed to implement 
findings from the Accelerated Disaster Response Initia-
tive of the Administration; and 
(vi) a description of how the Administration plans 
to integrate and coordinate the response to a major 
disaster with the technical assistance programs of the 
Administration; and 
(B) the plans of the Administrator for implementing 
any recommendation made under subparagraph (A). 
(g) REPORTS ON DISASTER ASSISTANCE.—The Small Business 
Act is amended by inserting after section 42, as added by this 
Act, the following: 
‘‘SEC. 43. ANNUAL REPORTS ON DISASTER ASSISTANCE. 
‘‘Not later than 45 days after the end of a fiscal year, the 
Administrator shall submit to the Committee on Small Business 
and Entrepreneurship of the Senate and the Committee on Small
H. R. 2419—505 
Business of the House of Representatives a report on the disaster 
assistance operations of the Administration for that fiscal year. 
The report shall— 
‘‘(1) specify the number of Administration personnel 
involved in such operations; 
‘‘(2) describe any material changes to those operations, 
such as changes to technologies used or to personnel responsibil-
ities; 
‘‘(3) describe and assess the effectiveness of the Administra-
tion in responding to disasters during that fiscal year, including 
a description of the number and amounts of loans made for 
damage and for economic injury; and 
‘‘(4) describe the plans of the Administration for preparing 
to respond to disasters during the next fiscal year.’’. 
TITLE XIII—COMMODITY FUTURES 
SEC. 13001. SHORT TITLE. 
This title may be cited as the ‘‘CFTC Reauthorization Act 
of 2008’’. 
Subtitle A—General Provisions 
SEC. 13101. COMMISSION AUTHORITY OVER AGREEMENTS, CONTRACTS 
OR TRANSACTIONS IN FOREIGN CURRENCY. 
(a) IN GENERAL.—Section 2(c)(2) of the Commodity Exchange 
Act (7 U.S.C. 2(c)(2)) is amended by striking subparagraphs (B) 
and (C) and inserting the following: 
‘‘(B) AGREEMENTS, CONTRACTS, AND TRANSACTIONS IN 
RETAIL FOREIGN CURRENCY.— 
‘‘(i) This Act applies to, and the Commission shall 
have jurisdiction over, an agreement, contract, or 
transaction in foreign currency that— 
‘‘(I) is a contract of sale of a commodity for 
future delivery (or an option on such a contract) 
or an option (other than an option executed or 
traded on a national securities exchange registered 
pursuant to section 6(a) of the Securities Exchange 
Act of 1934 (15 U.S.C. 78f(a))); and 
‘‘(II) is offered to, or entered into with, a person 
that is not an eligible contract participant, unless 
the counterparty, or the person offering to be the 
counterparty, of the person is— 
‘‘(aa) a financial institution; 
‘‘(bb)(AA) a broker or dealer registered 
under section 15(b) (except paragraph (11) 
thereof) or 15C of the Securities Exchange 
Act of 1934 (15 U.S.C. 78o(b), 78o–5); or 
‘‘(BB) an associated person of a broker 
or dealer registered under section 15(b) (except 
paragraph (11) thereof) or 15C of the Securi-
ties Exchange Act of 1934 (15 U.S.C. 78o(b), 
78o–5) concerning the financial or securities 
activities of which the broker or dealer makes 
and keeps records under section 15C(b) or
H. R. 2419—506 
17(h) of the Securities Exchange Act of 1934 
(15 U.S.C. 78o–5(b), 78q(h)); 
‘‘(cc)(AA) a futures commission merchant 
that is primarily or substantially engaged in 
the business activities described in section 
1a(20) of this Act, is registered under this 
Act, is not a person described in item (bb) 
of this subclause, and maintains adjusted net 
capital equal to or in excess of the dollar 
amount that applies for purposes of clause 
(ii) of this subparagraph; or 
‘‘(BB) an affiliated person of a futures 
commission merchant that is primarily or 
substantially engaged in the business activi-
ties described in section 1a(20) of this Act, 
is registered under this Act, and is not a per-
son described in item (bb) of this subclause, 
if the affiliated person maintains adjusted net 
capital equal to or in excess of the dollar 
amount that applies for purposes of clause 
(ii) of this subparagraph and is not a person 
described in such item (bb), and the futures 
commission 
merchant 
makes 
and 
keeps 
records under section 4f(c)(2)(B) of this Act 
concerning the futures and other financial 
activities of the affiliated person; 
‘‘(dd) an insurance company described in 
section 1a(12)(A)(ii) of this Act, or a regulated 
subsidiary or affiliate of such an insurance 
company; 
‘‘(ee) a financial holding company (as 
defined in section 2 of the Bank Holding Com-
pany Act of 1956); 
‘‘(ff) an investment bank holding company 
(as defined in section 17(i) of the Securities 
Exchange Act of 1934 (15 U.S.C. 78q(i))); or 
‘‘(gg) a retail foreign exchange dealer that 
maintains adjusted net capital equal to or in 
excess of the dollar amount that applies for 
purposes of clause (ii) of this subparagraph 
and is registered in such capacity with the 
Commission, subject to such terms and condi-
tions as the Commission shall prescribe, and 
is a member of a futures association registered 
under section 17. 
‘‘(ii) The dollar amount that applies for purposes 
of this clause is— 
‘‘(I) $10,000,000, beginning 120 days after the 
date of the enactment of this clause; 
‘‘(II) $15,000,000, beginning 240 days after 
such date of enactment; and 
‘‘(III) $20,000,000, beginning 360 days after 
such date of enactment. 
‘‘(iii) Notwithstanding items (cc) and (gg) of clause 
(i)(II) of this subparagraph, agreements, contracts, or 
transactions described in clause (i) of this subpara-
graph shall be subject to subsection (a)(1)(B) of this
H. R. 2419—507 
section and sections 4(b), 4b, 4c(b), 4o, 6(c) and 6(d) 
(except to the extent that sections 6(c) and 6(d) prohibit 
manipulation of the market price of any commodity 
in interstate commerce, or for future delivery on or 
subject to the rules of any market), 6c, 6d, 8(a), 13(a), 
and 13(b) if the agreements, contracts, or transactions 
are offered, or entered into, by a person that is reg-
istered as a futures commission merchant or retail 
foreign exchange dealer, or an affiliated person of a 
futures commission merchant registered under this Act 
that is not also a person described in any of item 
(aa), (bb), (dd), (ee), or (ff) of clause (i)(II) of this 
subparagraph. 
‘‘(iv)(I) Notwithstanding items (cc) and (gg) of 
clause (i)(II), a person, unless registered in such 
capacity as the Commission by rule, regulation, or 
order shall determine and a member of a futures 
association registered under section 17, shall not— 
‘‘(aa) solicit or accept orders from any person 
that is not an eligible contract participant in 
connection with agreements, contracts, or trans-
actions described in clause (i) entered into with 
or to be entered into with a person who is not 
described in item (aa), (bb), (dd), (ee), or (ff) of 
clause (i)(II); 
‘‘(bb) exercise discretionary trading authority 
or obtain written authorization to exercise discre-
tionary trading authority over any account for or 
on behalf of any person that is not an eligible 
contract participant in connection with agree-
ments, contracts, or transactions described in 
clause (i) entered into with or to be entered into 
with a person who is not described in item (aa), 
(bb), (dd), (ee), or (ff) of clause (i)(II); or 
‘‘(cc) operate or solicit funds, securities, or 
property for any pooled investment vehicle that 
is not an eligible contract participant in connection 
with 
agreements, 
contracts, 
or 
transactions 
described in clause (i) entered into with or to be 
entered into with a person who is not described 
in item (aa), (bb), (dd), (ee), or (ff) of clause (i)(II). 
‘‘(II) Subclause (I) of this clause shall not apply 
to— 
‘‘(aa) any person described in any of item (aa), 
(bb), (dd), (ee), or (ff) of clause (i)(II); 
‘‘(bb) any such person’s associated persons; or 
‘‘(cc) any person who would be exempt from 
registration if engaging in the same activities in 
connection with transactions conducted on or sub-
ject to the rules of a contract market or a deriva-
tives transaction execution facility. 
‘‘(III) Notwithstanding items (cc) and (gg) of clause 
(i)(II), the Commission may make, promulgate, and 
enforce such rules and regulations as, in the judgment 
of the Commission, are reasonably necessary to effec-
tuate any of the provisions of, or to accomplish any
H. R. 2419—508 
of the purposes of, this Act in connection with the 
activities of persons subject to subclause (I). 
‘‘(IV) Subclause (III) of this clause shall not apply 
to— 
‘‘(aa) any person described in any of item (aa) 
through (ff) of clause (i)(II); 
‘‘(bb) any such person’s associated persons; or 
‘‘(cc) any person who would be exempt from 
registration if engaging in the same activities in 
connection with transactions conducted on or sub-
ject to the rules of a contract market or a deriva-
tives transaction execution facility. 
‘‘(v) Notwithstanding items (cc) and (gg) of clause 
(i)(II), the Commission may make, promulgate, and 
enforce such rules and regulations as, in the judgment 
of the Commission, are reasonably necessary to effec-
tuate any of the provisions of, or to accomplish any 
of the purposes of, this Act in connection with agree-
ments, contracts, or transactions described in clause 
(i) which are offered, or entered into, by a person 
described in item (cc) or (gg) of clause (i)(II). 
‘‘(C)(i)(I) This subparagraph shall apply to any agree-
ment, contract, or transaction in foreign currency that is— 
‘‘(aa) offered to, or entered into with, a person 
that is not an eligible contract participant (except 
that this subparagraph shall not apply if the 
counterparty, or the person offering to be the 
counterparty, of the person that is not an eligible 
contract participant is a person described in any 
of item (aa), (bb), (dd), (ee), or (ff) of subparagraph 
(B)(i)(II)); and 
‘‘(bb) offered, or entered into, on a leveraged 
or margined basis, or financed by the offeror, the 
counterparty, or a person acting in concert with 
the offeror or counterparty on a similar basis. 
‘‘(II) Subclause (I) of this clause shall not apply to— 
‘‘(aa) a security that is not a security futures 
product; or 
‘‘(bb) a contract of sale that— 
‘‘(AA) results in actual delivery within 2 days; 
or 
‘‘(BB) creates an enforceable obligation to 
deliver between a seller and buyer that have the 
ability to deliver and accept delivery, respectively, 
in connection with their line of business. 
‘‘(ii)(I) Agreements, contracts, or transactions described 
in clause (i) of this subparagraph shall be subject to sub-
section (a)(1)(B) of this section and sections 4(b), 4b, 4c(b), 
4o, 6(c) and 6(d) (except to the extent that sections 6(c) 
and 6(d) prohibit manipulation of the market price of any 
commodity in interstate commerce, or for future delivery 
on or subject to the rules of any market), 6c, 6d, 8(a), 
13(a), and 13(b). 
‘‘(II) Subclause (I) of this clause shall not apply to— 
‘‘(aa) any person described in any of item (aa), 
(bb), (dd), (ee), or (ff) of subparagraph (B)(i)(II); or 
‘‘(bb) any such person’s associated persons.
H. R. 2419—509 
‘‘(III) The Commission may make, promulgate, and 
enforce such rules and regulations as, in the judgment 
of the Commission, are reasonably necessary to effectuate 
any of the provisions of or to accomplish any of the purposes 
of this Act in connection with agreements, contracts, or 
transactions described in clause (i) of this subparagraph 
if the agreements, contracts, or transactions are offered, 
or entered into, by a person that is not described in item 
(aa) through (ff) of subparagraph (B)(i)(II). 
‘‘(iii)(I) A person, unless registered in such capacity 
as the Commission by rule, regulation, or order shall deter-
mine and a member of a futures association registered 
under section 17, shall not— 
‘‘(aa) solicit or accept orders from any person that 
is not an eligible contract participant in connection 
with agreements, contracts, or transactions described 
in clause (i) of this subparagraph entered into with 
or to be entered into with a person who is not described 
in item (aa), (bb), (dd), (ee), or (ff) of subparagraph 
(B)(i)(II); 
‘‘(bb) exercise discretionary trading authority or 
obtain written authorization to exercise written trading 
authority over any account for or on behalf of any 
person that is not an eligible contract participant in 
connection with agreements, contracts, or transactions 
described in clause (i) of this subparagraph entered 
into with or to be entered into with a person who 
is not described in item (aa), (bb), (dd), (ee), or (ff) 
of subparagraph (B)(i)(II); or 
‘‘(cc) operate or solicit funds, securities, or property 
for any pooled investment vehicle that is not an eligible 
contract participant in connection with agreements, 
contracts, or transactions described in clause (i) of 
this subparagraph entered into with or to be entered 
into with a person who is not described in item (aa), 
(bb), (dd), (ee), or (ff) of subparagraph (B)(i)(II). 
‘‘(II) Subclause (I) of this clause shall not apply to— 
‘‘(aa) any person described in item (aa), (bb), (dd), 
(ee), or (ff) of subparagraph (B)(i)(II); 
‘‘(bb) any such person’s associated persons; or 
‘‘(cc) any person who would be exempt from reg-
istration if engaging in the same activities in connec-
tion with transactions conducted on or subject to the 
rules of a contract market or a derivatives transaction 
execution facility. 
‘‘(III) The Commission may make, promulgate, and 
enforce such rules and regulations as, in the judgment 
of the Commission, are reasonably necessary to effectuate 
any of the provisions of, or to accomplish any of the pur-
poses of, this Act in connection with the activities of persons 
subject to subclause (I). 
‘‘(IV) Subclause (III) of this clause shall not apply 
to— 
‘‘(aa) any person described in item (aa) through 
(ff) of subparagraph (B)(i)(II); 
‘‘(bb) any such person’s associated persons; or
H. R. 2419—510 
‘‘(cc) any person who would be exempt from reg-
istration if engaging in the same activities in connec-
tion with transactions conducted on or subject to the 
rules of a contract market or a derivatives transaction 
execution facility. 
‘‘(iv) Sections 4(b) and 4b shall apply to any agreement, 
contract, or transaction described in clause (i) of this 
subparagraph as if the agreement, contract, or transaction 
were a contract of sale of a commodity for future delivery. 
‘‘(v) This subparagraph shall not be construed to limit 
any jurisdiction that the Commission may otherwise have 
under any other provision of this Act over an agreement, 
contract, or transaction that is a contract of sale of a 
commodity for future delivery. 
‘‘(vi) This subparagraph shall not be construed to limit 
any jurisdiction that the Commission or the Securities and 
Exchange Commission may otherwise have under any other 
provision of this Act with respect to security futures prod-
ucts and persons effecting transactions in security futures 
products.’’. 
(b) EFFECTIVE DATE.—The following provisions of the Com-
modity Exchange Act, as amended by subsection (a) of this section, 
shall be effective 120 days after the date of the enactment of 
this Act or at such other time as the Commodity Futures Trading 
Commission shall determine: 
(1) Subparagraphs (B)(i)(II)(gg), (B)(iv), and (C)(iii) of sec-
tion 2(c)(2). 
(2) The provisions of section 2(c)(2)(B)(i)(II)(cc) that set 
forth adjusted net capital requirements, and the provisions 
of such section that require a futures commission merchant 
to be primarily or substantially engaged in certain business 
activities. 
SEC. 13102. ANTI-FRAUD AUTHORITY OVER PRINCIPAL-TO-PRINCIPAL 
TRANSACTIONS. 
Section 4b of the Commodity Exchange Act (7 U.S.C. Section 
6b) is amended— 
(1) by redesignating subsections (b) and (c) as subsections 
(c) and (d), respectively; and 
(2) by striking all through the end of subsection (a) and 
inserting the following: 
‘‘SEC. 4b. CONTRACTS DESIGNED TO DEFRAUD OR MISLEAD. 
‘‘(a) UNLAWFUL ACTIONS.—It shall be unlawful— 
‘‘(1) for any person, in or in connection with any order 
to make, or the making of, any contract of sale of any commodity 
in interstate commerce or for future delivery that is made, 
or to be made, on or subject to the rules of a designated 
contract market, for or on behalf of any other person; or 
‘‘(2) for any person, in or in connection with any order 
to make, or the making of, any contract of sale of any commodity 
for future delivery, or other agreement, contract, or transaction 
subject to paragraphs (1) and (2) of section 5a(g), that is made, 
or to be made, for or on behalf of, or with, any other person, 
other than on or subject to the rules of a designated contract 
market— 
‘‘(A) to cheat or defraud or attempt to cheat or defraud 
the other person;
H. R. 2419—511 
‘‘(B) willfully to make or cause to be made to the 
other person any false report or statement or willfully 
to enter or cause to be entered for the other person any 
false record; 
‘‘(C) willfully to deceive or attempt to deceive the other 
person by any means whatsoever in regard to any order 
or contract or the disposition or execution of any order 
or contract, or in regard to any act of agency performed, 
with respect to any order or contract for or, in the case 
of paragraph (2), with the other person; or 
‘‘(D)(i) to bucket an order if the order is either rep-
resented by the person as an order to be executed, or 
is required to be executed, on or subject to the rules of 
a designated contract market; or 
‘‘(ii) to fill an order by offset against the order or 
orders of any other person, or willfully and knowingly 
and without the prior consent of the other person to become 
the buyer in respect to any selling order of the other 
person, or become the seller in respect to any buying order 
of the other person, if the order is either represented by 
the person as an order to be executed, or is required to 
be executed, on or subject to the rules of a designated 
contract market unless the order is executed in accordance 
with the rules of the designated contract market. 
‘‘(b) CLARIFICATION.—Subsection (a)(2) of this section shall not 
obligate any person, in or in connection with a transaction in 
a contract of sale of a commodity for future delivery, or other 
agreement, contract or transaction subject to paragraphs (1) and 
(2) of section 5a(g), with another person, to disclose to the other 
person nonpublic information that may be material to the market 
price, rate, or level of the commodity or transaction, except as 
necessary to make any statement made to the other person in 
or in connection with the transaction not misleading in any material 
respect.’’. 
SEC. 13103. CRIMINAL AND CIVIL PENALTIES. 
(a) ENFORCEMENT POWERS OF THE COMMISSION.—Section 6(c) 
of the Commodity Exchange Act (7 U.S.C. 9, 15) is amended in 
clause (3) of the 10th sentence— 
(1) by inserting ‘‘(A)’’ after ‘‘assess such person’’; and 
(2) by inserting after ‘‘each such violation’’ the following: 
‘‘, or (B) in any case of manipulation or attempted manipulation 
in violation of this subsection, subsection (d) of this section, 
or section 9(a)(2), a civil penalty of not more than the greater 
of $1,000,000 or triple the monetary gain to the person for 
each such violation,’’. 
(b) NONENFORCEMENT OF RULES OF GOVERNMENT OR OTHER 
VIOLATIONS.—Section 6b of such Act (7 U.S.C. 13a) is amended— 
(1) in the first sentence, by inserting before the period 
at the end the following: ‘‘, or, in any case of manipulation 
or attempted manipulation in violation of section 6(c), 6(d), 
or 9(a)(2), a civil penalty of not more than $1,000,000 for 
each such violation’’; and 
(2) in the second sentence, by inserting before the period 
at the end the following: ‘‘, except that if the failure or refusal 
to obey or comply with the order involved any offense under 
section 9(a)(2), the registered entity, director, officer, agent,
H. R. 2419—512 
or employee shall be guilty of a felony and, on conviction, 
shall be subject to penalties under section 9(a)(2)’’. 
(c) ACTION TO ENJOIN OR RESTRAIN VIOLATIONS.—Section 6c(d) 
of such Act (7 U.S.C. 13a–1(d)) is amended by striking all that 
precedes paragraph (2) and inserting the following: 
‘‘(d) CIVIL PENALTIES.— 
‘‘(1) IN GENERAL.—In any action brought under this section, 
the Commission may seek and the court shall have jurisdiction 
to impose, on a proper showing, on any person found in the 
action to have committed any violation— 
‘‘(A) a civil penalty in the amount of not more than 
the greater of $100,000 or triple the monetary gain to 
the person for each violation; or 
‘‘(B) in any case of manipulation or attempted manipu-
lation in violation of section 6(c), 6(d), or 9(a)(2), a civil 
penalty in the amount of not more than the greater of 
$1,000,000 or triple the monetary gain to the person for 
each violation.’’. 
(d) VIOLATIONS GENERALLY.—Section 9(a) of such Act (7 U.S.C. 
13(a)) is amended in the matter preceding paragraph (1)— 
(1) by striking ‘‘(or $500,000 in the case of a person who 
is an individual)’’; and 
(2) by striking ‘‘five years’’ and inserting ‘‘10 years’’. 
SEC. 13104. AUTHORIZATION OF APPROPRIATIONS. 
Section 12(d) of the Commodity Exchange Act (7 U.S.C. 16(d)) 
is amended to read as follows: 
‘‘(d) There are authorized to be appropriated such sums as 
are necessary to carry out this Act for each of the fiscal years 
2008 through 2013.’’. 
SEC. 13105. TECHNICAL AND CONFORMING AMENDMENTS. 
(a) Section 4a(e) of the Commodity Exchange Act (7 U.S.C. 
6a(e)) is amended— 
(1) by inserting ‘‘or certified by a registered entity pursuant 
to section 5c(c)(1)’’ after ‘‘approved by the Commission’’ ; and 
(2) by striking ‘‘section 9(c)’’ and inserting ‘‘section 9(a)(5)’’. 
(b) Section 4f(c)(4)(B)(i) of such Act (7 U.S.C. 6f(c)(4)(B)(i)) 
is amended by striking ‘‘compiled’’ and inserting ‘‘complied’’. 
(c) Section 4k of such Act (7 U.S.C. 6k) is amended by redesig-
nating the second paragraph (5) as paragraph (6). 
(d) The Commodity Exchange Act is amended— 
(1) by redesignating the first section 4p (7 U.S.C. 6o– 
1), as added by section 121 of the Commodity Futures Mod-
ernization Act of 2000, as section 4q; and 
(2) by moving such section to after the second section 
4p, as added by section 206 of Public Law 93–446. 
(e) Subsections (a)(1) and (d)(1) of section 5c of such Act (7 
U.S.C. 7a–2(a)(1), (d)(1)) are each amended by striking ‘‘5b(d)(2)’’ 
and inserting ‘‘5b(c)(2)’’. 
(f) Sections 5c(f) and 17(r) of such Act (7 U.S.C. 7a–2(f), 21(r)) 
are each amended by striking ‘‘4d(3)’’ and inserting ‘‘4d(c)’’. 
(g) Section 8(a)(1) of such Act (7 U.S.C. 12(a)(1)) is amended 
in the matter following subparagraph (B)— 
(1) by striking ‘‘commenced’’ in the 2nd place it appears; 
and 
(2) by inserting ‘‘commenced’’ after ‘‘in a judicial pro-
ceeding’’.
H. R. 2419—513 
(h) Section 9 of such Act (7 U.S.C. 13) is amended— 
(1) in subsection (f)(1), by striking the period and inserting 
‘‘; or’’; and 
(2) by redesignating subsection (f) as subsection (e). 
(i) Section 22(a)(2) of such Act (7 U.S.C. 25(a)(2)) is amended 
by striking ‘‘5b(b)(1)(E)’’ and inserting ‘‘5b(c)(2)(H)’’. 
(j) Section 1a(33)(A) of such Act (7 U.S.C. 1a(33)(A)) is amended 
by striking ‘‘transactions’’ and all that follows and inserting ‘‘trans-
actions— 
‘‘(i) by accepting bids or offers made by other 
participants that are open to multiple partipants in 
the facility or system; or 
‘‘(ii) through the interaction of multiple bids or 
multiple offers within a system with a pre-determined 
non-discretionary automated trade matching and 
execution algorithm.’’. 
(k) Section 14(d) of such Act (7 U.S.C. 18(d)) is amended— 
(1) by inserting ‘‘(1)’’ before ‘‘If’’; and 
(2) by adding after and below the end the following: 
‘‘(2) A reparation award shall be directly enforceable in 
district court as if it were a judgment pursuant to section 
1963 of title 28, United States Code. This paragraph shall 
operate retroactively from the effective date of its enactment, 
and shall apply to all reparation awards for which a proceeding 
described in paragraph (1) is commenced within 3 years of 
the date of the Commission’s order.’’. 
SEC. 13106. PORTFOLIO MARGINING AND SECURITY INDEX ISSUES. 
(a) The Secretary of the Treasury, the Chairman of the Board 
of Governors of the Federal Reserve System, the Chairman of 
the Securities and Exchange Commission, and the Chairman of 
the Commodity Futures Trading Commission shall work to ensure 
that the Securities and Exchange Commission (SEC), the Com-
modity Futures Trading Commission (CFTC), or both, as appro-
priate, have taken the actions required under subsection (b). 
(b) The SEC, the CFTC, or both, as appropriate, shall take 
action under their existing authorities to permit— 
(1) by September 30, 2009, risk-based portfolio margining 
for security options and security futures products (as defined 
in section 1a(32) of the Commodity Exchange Act); and 
(2) by June 30, 2009, the trading of futures on certain 
security indexes by resolving issues related to foreign security 
indexes. 
Subtitle B—Significant Price Discovery 
Contracts on Exempt Commercial Markets 
SEC. 13201. SIGNIFICANT PRICE DISCOVERY CONTRACTS. 
(a) DEFINITIONS.—Section la of the Commodity Exchange Act 
(7 U.S.C. la) is amended— 
(1) by redesignating paragraph (33) as paragraph (34); 
and 
(2) by inserting after paragraph (32) the following: 
‘‘(33) SIGNIFICANT PRICE DISCOVERY CONTRACT.—The term 
‘significant price discovery contract’ means an agreement, con-
tract, or transaction subject to section 2(h)(7).’’.
H. R. 2419—514 
(b) STANDARDS APPLICABLE TO SIGNIFICANT PRICE DISCOVERY 
CONTRACTS.—Section 2(h) of such Act (7 U.S.C. 2(h)) is amended 
by adding at the end the following: 
‘‘(7) SIGNIFICANT PRICE DISCOVERY CONTRACTS.— 
‘‘(A) IN GENERAL.—An agreement, contract, or trans-
action conducted in reliance on the exemption in paragraph 
(3) shall be subject to the provisions of subparagraphs 
(B) through (D), under such rules and regulations as the 
Commission shall promulgate, provided that the Commis-
sion determines, in its discretion, that the agreement, con-
tract, or transaction performs a significant price discovery 
function as described in subparagraph (B). 
‘‘(B) SIGNIFICANT PRICE DISCOVERY DETERMINATION.— 
In making a determination whether an agreement, con-
tract, or transaction performs a significant price discovery 
function, the Commission shall consider, as appropriate: 
‘‘(i) PRICE
LINKAGE.—The extent to which the 
agreement, contract, or transaction uses or otherwise 
relies on a daily or final settlement price, or other 
major price parameter, of a contract or contracts listed 
for trading on or subject to the rules of a designated 
contract market or a derivatives transaction execution 
facility, or a significant price discovery contract traded 
on an electronic trading facility, to value a position, 
transfer or convert a position, cash or financially settle 
a position, or close out a position. 
‘‘(ii) ARBITRAGE.—The extent to which the price 
for the agreement, contract, or transaction is suffi-
ciently related to the price of a contract or contracts 
listed for trading on or subject to the rules of a des-
ignated contract market or derivatives transaction 
execution facility, or a significant price discovery con-
tract or contracts trading on or subject to the rules 
of an electronic trading facility, so as to permit market 
participants to effectively arbitrage between the mar-
kets by simultaneously maintaining positions or exe-
cuting trades in the contracts on a frequent and recur-
ring basis. 
‘‘(iii) MATERIAL PRICE REFERENCE.—The extent to 
which, on a frequent and recurring basis, bids, offers, 
or transactions in a commodity are directly based on, 
or are determined by referencing, the prices generated 
by agreements, contracts, or transactions being traded 
or executed on the electronic trading facility. 
‘‘(iv) MATERIAL LIQUIDITY.—The extent to which 
the volume of agreements, contracts, or transactions 
in the commodity being traded on the electronic trading 
facility is sufficient to have a material effect on other 
agreements, contracts, or transactions listed for trading 
on or subject to the rules of a designated contract 
market, a derivatives transaction execution facility, 
or an electronic trading facility operating in reliance 
on the exemption in paragraph (3). 
‘‘(v) OTHER MATERIAL FACTORS.—Such other mate-
rial factors as the Commission specifies by rule as 
relevant to determine whether an agreement, contract,
H. R. 2419—515 
or transaction serves a significant price discovery func-
tion. 
‘‘(C) CORE
PRINCIPLES
APPLICABLE
TO
SIGNIFICANT 
PRICE DISCOVERY CONTRACTS.— 
‘‘(i) IN GENERAL.—An electronic trading facility on 
which significant price discovery contracts are traded 
or executed shall, with respect to those contracts, 
comply with the core principles specified in this 
subparagraph. 
‘‘(ii) CORE
PRINCIPLES.—The electronic trading 
facility shall have reasonable discretion (including 
discretion to account for differences between cleared 
and uncleared significant price discovery contracts) in 
establishing the manner in which it complies with 
the following core principles: 
‘‘(I) CONTRACTS NOT READILY SUSCEPTIBLE TO 
MANIPULATION.—The electronic trading facility 
shall list only significant price discovery contracts 
that are not readily susceptible to manipulation. 
‘‘(II) MONITORING OF TRADING.—The electronic 
trading facility shall monitor trading in significant 
price discovery contracts to prevent market 
manipulation, price distortion, and disruptions of 
the delivery or cash-settlement process through 
market surveillance, compliance, and disciplinary 
practices and procedures, including methods for 
conducting real-time monitoring of trading and 
comprehensive and accurate trade reconstructions. 
‘‘(III) ABILITY TO OBTAIN INFORMATION.—The 
electronic trading facility shall— 
‘‘(aa) establish and enforce rules that will 
allow the electronic trading facility to obtain 
any necessary information to perform any of 
the functions described in this subparagraph; 
‘‘(bb) provide the information to the 
Commission upon request; and 
‘‘(cc) have the capacity to carry out such 
international information-sharing agreements 
as the Commission may require. 
‘‘(IV) POSITION
LIMITATIONS
OR
ACCOUNT-
ABILITY.—The electronic trading facility shall 
adopt, where necessary and appropriate, position 
limitations or position accountability for specu-
lators in significant price discovery contracts, 
taking into account positions in other agreements, 
contracts, and transactions that are treated by 
a derivatives clearing organization, whether reg-
istered or not registered, as fungible with such 
significant price discovery contracts to reduce the 
potential threat of market manipulation or conges-
tion, especially during trading in the delivery 
month. 
‘‘(V) EMERGENCY AUTHORITY.—The electronic 
trading facility shall adopt rules to provide for 
the exercise of emergency authority, in consulta-
tion or cooperation with the Commission, where
H. R. 2419—516 
necessary 
and 
appropriate, 
including 
the 
authority— 
‘‘(aa) to liquidate open positions in a 
significant price discovery contract; and 
‘‘(bb) to suspend or curtail trading in a 
significant price discovery contract. 
‘‘(VI) DAILY PUBLICATION OF TRADING INFORMA-
TION.—The electronic trading facility shall make 
public daily information on price, trading volume, 
and other trading data to the extent appropriate 
for significant price discovery contracts 
‘‘(VII) COMPLIANCE
WITH
RULES.—The elec-
tronic trading facility shall monitor and enforce 
compliance with any rules of the electronic trading 
facility applicable to significant price discovery 
contracts, including the terms and conditions of 
the contracts and any limitations on access to the 
electronic trading facility with respect to the con-
tracts. 
‘‘(VIII) CONFLICT OF INTEREST.—The electronic 
trading facility, with respect to significant price 
discovery contracts, shall— 
‘‘(aa) establish and enforce rules to mini-
mize conflicts of interest in its decision-making 
process; and 
‘‘(bb) establish a process for resolving the 
conflicts of interest. 
‘‘(IX) 
ANTITRUST
CONSIDERATIONS.—Unless 
necessary or appropriate to achieve the purposes 
of this Act, the electronic trading facility, with 
respect to significant price discovery contracts, 
shall endeavor to avoid— 
‘‘(aa) adopting any rules or taking any 
actions that result in any unreasonable 
restraints of trade; or 
‘‘(bb) imposing any material anticompeti-
tive burden on trading on the electronic 
trading facility. 
‘‘(D) IMPLEMENTATION.— 
‘‘(i) CLEARING.—The Commission shall take into 
consideration 
differences 
between 
cleared 
and 
uncleared significant price discovery contracts when 
reviewing the implementation of the core principles 
by an electronic trading facility. 
‘‘(ii) REVIEW.—As part of the Commission’s con-
tinual monitoring and surveillance activities, the 
Commission shall, not less frequently than annually, 
evaluate, as appropriate, all the agreements, contracts, 
or transactions conducted on an electronic trading 
facility in reliance on the exemption provided in para-
graph (3) to determine whether they serve a significant 
price discovery function as described in subparagraph 
(B) of this paragraph.’’. 
SEC. 13202. LARGE TRADER REPORTING. 
(a) REPORTING AND RECORDKEEPING.—Section 4g(a) of the Com-
modity Exchange Act (7 U.S.C. 6g(a)) is amended by inserting
H. R. 2419—517 
‘‘, and in any significant price discovery contract traded or executed 
on an electronic trading facility or any agreement, contract, or 
transaction that is treated by a derivatives clearing organization, 
whether registered or not registered, as fungible with a significant 
price discovery contract’’ after ‘‘elsewhere’’. 
(b) REPORTS OF POSITIONS EQUAL TO OR IN EXCESS OF TRADING 
LIMITS.—Section 4i of such Act (7 U.S.C. 6i) is amended— 
(1) by inserting ‘‘, or any significant price discovery contract 
traded or executed on an electronic trading facility or any 
agreement, contract, or transaction that is treated by a deriva-
tives clearing organization, whether registered or not reg-
istered, as fungible with a significant price discovery contract’’ 
after ‘‘subject to the rules of any contract market or derivatives 
transaction execution facility’’; and 
(2) in the matter following paragraph (2), by inserting 
‘‘or electronic trading facility’’ after ‘‘subject to the rules of 
any other board of trade’’. 
SEC. 13203. CONFORMING AMENDMENTS. 
(a) Section 1a(12)(A)(x) of the Commodity Exchange Act (7 
U.S.C. 1a(12)(A)(x)) is amended by inserting ‘‘(other than an elec-
tronic trading facility with respect to a significant price discovery 
contract)’’ after ‘‘registered entity’’. 
(b) Section 1a(29) of such Act (7 U.S.C. 1a(29)) is amended— 
(1) in subparagraph (C), by striking ‘‘and’’ at the end; 
(2) in subparagraph (D), by striking the period and 
inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(E) with respect to a contract that the Commission 
determines is a significant price discovery contract, any 
electronic trading facility on which the contract is executed 
or traded.’’. 
(c) Section 2(a)(1)(A) of such Act (7 U.S.C. 2(a)(1)(A)) is amended 
by inserting after ‘‘future delivery’’ the following: ‘‘(including signifi-
cant price discovery contracts)’’. 
(d) Section 2(h)(3) of such Act (7 U.S.C. 2(h)(3)) is amended 
by striking ‘‘paragraph (4)’’ and inserting ‘‘paragraphs (4) and (7)’’. 
(e) Section 2(h)(4) of such Act (7 U.S.C. 2(h)(4)) is amended— 
(1) in subparagraph (B), by inserting ‘‘and, for a significant 
price discovery contract, requiring large trader reporting,’’ after 
‘‘proscribing fraud’’; 
(2) by striking ‘‘and’’ at the end of subparagraph (C); and 
(3) by striking subparagraph (D) and inserting the fol-
lowing: 
‘‘(D) such rules, regulations, and orders as the Commis-
sion may issue to ensure timely compliance with any of 
the provisions of this Act applicable to a significant price 
discovery contract traded on or executed on any electronic 
trading facility; and 
‘‘(E) such other provisions of this Act as are applicable 
by their terms to significant price discovery contracts or 
to registered entities or electronic trading facilities with 
respect to significant price discovery contracts.’’. 
(f) Section 2(h)(5)(B)(iii)(I) of such Act (7 U.S.C. 2(h)(5)(B)(iii)(I)) 
is amended by inserting ‘‘or to make the determination described 
in subparagraph (B) of paragraph (7)’’ after ‘‘paragraph (4)’’. 
(g) Section 4a of such Act (7 U.S.C. 6a) is amended—
H. R. 2419—518 
(1) in subsection (a)— 
(A) in the first sentence, by inserting ‘‘, or on electronic 
trading facilities with respect to a significant price dis-
covery contract’’ after ‘‘derivatives transaction execution 
facilities’’; and 
(B) in the second sentence, by inserting ‘‘, or on an 
electronic trading facility with respect to a significant price 
discovery contract,’’ after ‘‘derivatives transaction execution 
facility’’; and 
(2) in subsection (b)— 
(A) in paragraph (1), by inserting ‘‘or electronic trading 
facility with respect to a significant price discovery con-
tract’’ after ‘‘facility or facilities’’; and 
(B) in paragraph (2), by inserting ‘‘or electronic trading 
facility with respect to a significant price discovery con-
tract’’ after ‘‘derivatives transaction execution facility’’; and 
(3) in subsection (e)— 
(A) in the first sentence— 
(i) by inserting ‘‘or by any electronic trading 
facility’’ after ‘‘registered by the Commission’’; 
(ii) by inserting ‘‘or on an electronic trading 
facility’’ 
after 
‘‘derivatives 
transaction 
execution 
facility’’ the second place it appears; and 
(iii) by inserting ‘‘or electronic trading facility’’ 
before ‘‘or such board of trade’’ each place it appears; 
and 
(B) in the second sentence, by inserting ‘‘or electronic 
trading facility with respect to a significant price discovery 
contract’’ after ‘‘registered by the Commission’’. 
(h) Section 5a(d) of such Act (7 U.S.C. 7a(d)(1)) is amended— 
(1) by redesignating paragraphs (4) through (9) as para-
graphs (5) through (10); and 
(2) by inserting after paragraph (3) the following: 
‘‘(4) POSITION LIMITATIONS OR ACCOUNTABILITY.—To reduce 
the potential threat of market manipulation or congestion, espe-
cially during trading in the delivery month, the derivatives 
transaction execution facility shall adopt position limits or posi-
tion accountability for speculators, where necessary and appro-
priate for a contract, agreement or transaction with an under-
lying commodity that has a physically deliverable supply.’’. 
(i) Section 5c(a) of such Act (7 U.S.C. 7a–2(a)) is amended 
in paragraph (1) by inserting ‘‘, and section 2(h)(7) with respect 
to significant price discovery contracts,’’ after ‘‘, and 5b(d)(2)’’. 
(j) Section 5c(b) of such Act (7 U.S.C. 7a–2(b)) is amended— 
(1) by striking paragraph (1) and inserting the following: 
‘‘(1) IN GENERAL.—A contract market, derivatives trans-
action execution facility, or electronic trading facility with 
respect to a significant price discovery contract may comply 
with any applicable core principle through delegation of any 
relevant function to a registered futures association or a reg-
istered entity that is not an electronic trading facility.’’; 
(2) in paragraph (2), by striking ‘‘contract market or deriva-
tives transaction execution facility’’ and inserting ‘‘contract 
market, derivatives transaction execution facility, or electronic 
trading facility’’; and 
(3) in paragraph (3), by striking ‘‘contract market or deriva-
tives transaction execution facility’’ each place it appears and
H. R. 2419—519 
inserting ‘‘contract market, derivatives transaction execution 
facility, or electronic trading facility’’. 
(k) Section 5c(d)(1) of such Act (7 U.S.C. 7a–2(d)(1)) is amended 
by inserting ‘‘or 2(h)(7)(C) with respect to a significant price dis-
covery contract traded or executed on an electronic trading facility,’’ 
after ‘‘5b(d)(2)’’. 
(l) Section 5e of such Act (7 U.S.C. 7b) is amended by inserting 
‘‘, or revocation of the right of an electronic trading facility to 
rely on the exemption set forth in section 2(h)(3) with respect 
to a significant price discovery contract,’’ after ‘‘revocation of des-
ignation as a registered entity’’. 
(m) Section 6(b) of the Commodity Exchange Act (7 U.S.C. 
8(b)) is amended by striking the first sentence and all that follows 
through ‘‘hearing on the record: Provided,’’ and inserting the fol-
lowing: 
‘‘The Commission is authorized to suspend for a period not 
to exceed 6 months or to revoke the designation or registration 
of any contract market or derivatives transaction execution facility, 
or to revoke the right of an electronic trading facility to rely on 
the exemption set forth in section 2(h)(3) with respect to a signifi-
cant price discovery contract, on a showing that the contract market 
or derivatives transaction execution facility is not enforcing or has 
not enforced its rules of government, made a condition of its designa-
tion or registration as set forth in sections 5 through 5b or section 
5f, or that the contract market or derivatives transaction execution 
facility or electronic trading facility, or any director, officer, agent, 
or employee thereof, otherwise is violating or has violated any 
of the provisions of this Act or any of the rules, regulations, or 
orders of the Commission thereunder. Such suspension or revocation 
shall only be made after a notice to the officers of the contract 
market or derivatives transaction execution facility or electronic 
trading facility affected and upon a hearing on the record: Pro-
vided,’’. 
(n) Section 22(b)(1) of such Act (7 U.S.C. 25(b)(1)) is amended 
by inserting ‘‘section 2(h)(7) or’’ before ‘‘sections 5’’. 
SEC. 13204. EFFECTIVE DATE. 
(a) IN GENERAL.—Except as provided in this section, this sub-
title shall become effective on the date of enactment of this Act. 
(b) SIGNIFICANT PRICE DISCOVERY STANDARDS RULEMAKING.— 
(1) The Commodity Futures Trading Commission shall— 
(A) not later than 180 days after the date of the enact-
ment of this Act, issue a proposed rule regarding the 
implementation of section 2(h)(7) of the Commodity 
Exchange Act; and 
(B) not later than 270 days after the date of enactment 
of this Act, issue a final rule regarding the implementation. 
(2) In its rulemaking pursuant to paragraph (1) of this 
subsection, the Commission shall include the standards, terms, 
and conditions under which an electronic trading facility will 
have the responsibility to notify the Commission that an agree-
ment, contract, or transaction conducted in reliance on the 
exemption provided in section 2(h)(3) of the Commodity 
Exchange Act may perform a price discovery function. 
(c) SIGNIFICANT
PRICE
DISCOVERY
DETERMINATIONS.—With 
respect to any electronic trading facility operating on the effective 
date of the final rule issued pursuant to subsection (b)(1), the
H. R. 2419—520 
Commission shall complete a review of the agreements, contracts, 
and transactions of the facility not later than 180 days after that 
effective date to determine whether any such agreement, contract, 
or transaction performs a significant price discovery function. 
TITLE XIV—MISCELLANEOUS 
Subtitle A—Socially Disadvantaged Pro-
ducers and Limited Resource Producers 
SEC. 14001. IMPROVED PROGRAM DELIVERY BY DEPARTMENT OF 
AGRICULTURE ON INDIAN RESERVATIONS. 
Section 2501(g)(1) of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 2279(g)(1)) is amended— 
(1) in the first sentence— 
(A) by striking ‘‘Agricultural Stabilization and Con-
servation Service, Soil Conservation Service, and Farmers 
Home Administration offices’’ and inserting ‘‘Farm Service 
Agency and Natural Resources Conservation Service’’; and 
(B) by inserting ‘‘where there has been a need dem-
onstrated’’ after ‘‘include’’; and 
(2) by striking the second sentence. 
SEC. 14002. FORECLOSURE. 
(a) IN GENERAL.—Section 331A of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1981a) is amended: 
(1) by inserting ‘‘(a)’’ after ‘‘SEC. 331A.’’; and 
(2) by adding at the end the following: 
‘‘(b) MORATORIUM.— 
‘‘(1) IN GENERAL.—Subject to the other provisions of this 
subsection, effective beginning on the date of the enactment 
of this subsection, there shall be in effect a moratorium, with 
respect to farmer program loans made under subtitle A, B, 
or C, on all acceleration and foreclosure proceedings instituted 
by the Department of Agriculture against any farmer or rancher 
who— 
‘‘(A) has pending against the Department a claim of 
program discrimination that is accepted by the Department 
as valid; or 
‘‘(B) files a claim of program discrimination that is 
accepted by the Department as valid. 
‘‘(2) WAIVER OF INTEREST AND OFFSETS.—During the period 
of the moratorium, the Secretary shall waive the accrual of 
interest and offsets on all farmer program loans made under 
subtitle A, B, or C for which loan acceleration or foreclosure 
proceedings have been suspended under paragraph (1). 
‘‘(3) TERMINATION OF MORATORIUM.—The moratorium shall 
terminate with respect to a claim of discrimination by a farmer 
or rancher on the earlier of— 
‘‘(A) the date the Secretary resolves the claim; or 
‘‘(B) if the farmer or rancher appeals the decision of 
the Secretary on the claim to a court of competent jurisdic-
tion, the date that the court renders a final decision on 
the claim.
H. R. 2419—521 
‘‘(4) FAILURE
TO
PREVAIL.—If a farmer or rancher does 
not prevail on a claim of discrimination described in paragraph 
(1), the farmer or rancher shall be liable for any interest and 
offsets that accrued during the period that loan acceleration 
or foreclosure proceedings have been suspended under para-
graph (1).’’. 
(b) FORECLOSURE REPORT.— 
(1) IN
GENERAL.—Not later than 1 year after the date 
of the enactment of this Act, the Inspector General of the 
Department of Agriculture (referred to in this subsection as 
the ‘‘Inspector General’’) shall determine whether decisions of 
the Department to implement foreclosure proceedings with 
respect to farmer program loans made under subtitle A, B, 
or C of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1922 et seq.) to socially disadvantaged farmers or 
ranchers during the 5-year period preceding the date of the 
enactment of this Act were consistent and in conformity with 
the applicable laws (including regulations) governing loan fore-
closures. 
(2) REPORT.—Not later than 1 year after the date of the 
enactment of this Act, the Inspector General shall submit to 
the Committee on Agriculture of the House of Representatives 
and the Committee on Agriculture, Nutrition, and Forestry 
of the Senate a report that describes the determination of 
the Inspector General under paragraph (1). 
SEC. 14003. RECEIPT FOR SERVICE OR DENIAL OF SERVICE FROM 
CERTAIN DEPARTMENT OF AGRICULTURE AGENCIES. 
Section 2501A of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 2279–1) is amended by adding at 
the end the following new subsection: 
‘‘(e) RECEIPT
FOR SERVICE
OR DENIAL
OF SERVICE.—In any 
case in which a current or prospective producer or landowner, 
in person or in writing, requests from the Farm Service Agency, 
the Natural Resources Conservation Service, or an agency of the 
Rural Development Mission Area any benefit or service offered 
by the Department to agricultural producers or landowners and, 
at the time of the request, also requests a receipt, the Secretary 
shall issue, on the date of the request, a receipt to the producer 
or landowner that contains— 
‘‘(1) the date, place, and subject of the request; and 
‘‘(2) the action taken, not taken, or recommended to the 
producer or landowner.’’. 
SEC. 14004. OUTREACH AND TECHNICAL ASSISTANCE FOR SOCIALLY 
DISADVANTAGED FARMERS OR RANCHERS. 
(a) OUTREACH AND TECHNICAL ASSISTANCE PROGRAM.— 
(1) PROGRAM
REQUIREMENTS.—Paragraph (2) of section 
2501(a) of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 2279(a)) is amended to read as follows: 
‘‘(2) REQUIREMENTS.—The outreach and technical assist-
ance program under paragraph (1) shall be used exclusively— 
‘‘(A) to enhance coordination of the outreach, technical 
assistance, and education efforts authorized under agri-
culture programs; and 
‘‘(B) to assist the Secretary in—
H. R. 2419—522 
‘‘(i) reaching current and prospective socially dis-
advantaged farmers or ranchers in a linguistically 
appropriate manner; and 
‘‘(ii) improving the participation of those farmers 
and ranchers in Department programs, as reported 
under section 2501A.’’. 
(2) GRANTS
AND
CONTRACTS
UNDER
PROGRAM.—Section 
2501(a)(3) of the Food, Agriculture, Conservation, and Trade 
Act of 1990 (7 U.S.C. 2279(a)(3)) is amended— 
(A) in subparagraph (A), by striking ‘‘entity to provide 
information’’ and inserting ‘‘entity that has demonstrated 
an ability to carry out the requirements described in para-
graph (2) to provide outreach’’; and 
(B) by adding at the end the following new subpara-
graph: 
‘‘(D) REPORT.—The Secretary shall submit to the Com-
mittee on Agriculture of the House of Representatives and 
the Committee on Agriculture, Nutrition, and Forestry of 
the Senate, and make publicly available, an annual report 
that includes a list of the following: 
‘‘(i) The recipients of funds made available under 
the program. 
‘‘(ii) The activities undertaken and services pro-
vided. 
‘‘(iii) The number of current and prospective 
socially disadvantaged farmers or ranchers served and 
outcomes of such service. 
‘‘(iv) The problems and barriers identified by enti-
ties in trying to increase participation by current and 
prospective 
socially 
disadvantaged 
farmers 
or 
ranchers.’’. 
(3) FUNDING AND LIMITATION ON USE OF FUNDS.—Section 
2501(a)(4) of the Food, Agriculture, Conservation, and Trade 
Act of 1990 (7 U.S.C. 2279(a)(4)) is amended— 
(A) by striking subparagraph (A) and inserting the 
following new subparagraph: 
‘‘(A) IN
GENERAL.—Of the funds of the Commodity 
Credit Corporation, the Secretary shall make available to 
carry out this section— 
‘‘(i) $15,000,000 for fiscal year 2009; and 
‘‘(ii) $20,000,000 for each of fiscal years 2010 
through 2012.’’. 
(B) by adding at the end the following new subpara-
graph: 
‘‘(C) LIMITATION ON USE OF FUNDS FOR ADMINISTRATIVE 
EXPENSES.—Not more than 5 percent of the amounts made 
available under subparagraph (A) for a fiscal year may 
be used for expenses related to administering the program 
under this section.’’. 
(b) ELIGIBLE ENTITY DEFINED.—Section 2501(e)(5)(A)(ii) of the 
Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 
2279(e)(5)(A)(ii)) is amended by striking ‘‘work with socially dis-
advantaged farmers or ranchers during the 2-year period’’ and 
inserting ‘‘work with, and on behalf of, socially disadvantaged 
farmers or ranchers during the 3-year period’’.
H. R. 2419—523 
SEC. 14005. ACCURATE DOCUMENTATION IN THE CENSUS OF AGRI-
CULTURE AND CERTAIN STUDIES. 
Section 2501 of the Food, Agriculture, Conservation, and Trade 
Act of 1990 (7 U.S.C. 2279) is amended by adding at the end 
the following: 
‘‘(h) ACCURATE DOCUMENTATION.—The Secretary shall ensure, 
to the maximum extent practicable, that the Census of Agriculture 
and studies carried out by the Economic Research Service accurately 
document the number, location, and economic contributions of 
socially disadvantaged farmers or ranchers in agricultural produc-
tion.’’. 
SEC. 14006. TRANSPARENCY AND ACCOUNTABILITY FOR SOCIALLY DIS-
ADVANTAGED FARMERS OR RANCHERS. 
Section 2501A of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 2279–1) is amended by striking sub-
section (c) and inserting the following new subsections: 
‘‘(c) COMPILATION OF PROGRAM PARTICIPATION DATA.— 
‘‘(1) ANNUAL REQUIREMENT.—For each county and State 
in the United States, the Secretary of Agriculture (referred 
to in this section as the ‘Secretary’) shall annually compile 
program application and participation rate data regarding 
socially disadvantaged farmers or ranchers by computing for 
each program of the Department of Agriculture that serves 
agricultural producers and landowners— 
‘‘(A) raw numbers of applicants and participants by 
race, ethnicity, and gender, subject to appropriate privacy 
protections, as determined by the Secretary; and 
‘‘(B) the application and participation rate, by race, 
ethnicity, and gender, as a percentage of the total participa-
tion rate of all agricultural producers and landowners. 
‘‘(2) AUTHORITY TO COLLECT DATA.—The heads of the agen-
cies of the Department of Agriculture shall collect and transmit 
to the Secretary any data, including data on race, gender, 
and ethnicity, that the Secretary determines to be necessary 
to carry out paragraph (1). 
‘‘(3) REPORT.—Using the technologies and systems of the 
National Agricultural Statistics Service, the Secretary shall 
compile and present the data compiled under paragraph (1) 
for each program described in that paragraph in a manner 
that includes the raw numbers and participation rates for— 
‘‘(A) the entire United States; 
‘‘(B) each State; and 
‘‘(C) each county in each State. 
‘‘(4) PUBLIC AVAILABILITY OF REPORT.—The Secretary shall 
maintain and make readily available to the public, via website 
and otherwise in electronic and paper form, the report described 
in paragraph (3). 
‘‘(d) LIMITATIONS ON USE OF DATA.— 
‘‘(1) PRIVACY PROTECTIONS.—In carrying out this section, 
the Secretary shall not disclose the names or individual data 
of any program participant. 
‘‘(2) AUTHORIZED USES.—The data under this section shall 
be used exclusively for the purposes described in subsection 
(a).
H. R. 2419—524 
‘‘(3) LIMITATION.—Except as otherwise provided, the data 
under this section shall not be used for the evaluation of 
individual applications for assistance.’’. 
SEC. 14007. OVERSIGHT AND COMPLIANCE. 
The Secretary, acting through the Assistant Secretary for Civil 
Rights of the Department of Agriculture, shall use the reports 
described in subsection (c) of section 2501A of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 2279–1), as amended 
by section 14006, in the conduct of oversight and evaluation of 
civil rights compliance. 
SEC. 14008. MINORITY FARMER ADVISORY COMMITTEE. 
(a) ESTABLISHMENT.—Not later than 18 months after the date 
of the enactment of this Act, the Secretary of Agriculture shall 
establish an advisory committee, to be known as the ‘‘Advisory 
Committee on Minority Farmers’’ (in this section referred to as 
the ‘‘Committee’’). 
(b) DUTIES.—The Committee shall provide advice to the Sec-
retary on— 
(1) the implementation of section 2501 of the Food, Agri-
culture, Conservation, and Trade Act of 1990 (7 U.S.C. 2279); 
(2) methods of maximizing the participation of minority 
farmers and ranchers in Department of Agriculture programs; 
and 
(3) civil rights activities within the Department as such 
activities relate to participants in such programs. 
(c) MEMBERSHIP.— 
(1) IN GENERAL.—The Committee shall be composed of not 
more than 15 members, who shall be appointed by the Sec-
retary, and shall include— 
(A) not less than four socially disadvantaged farmers 
or ranchers (as defined in section 2501(e)(2) of the Food, 
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 
2279(e)(2))); 
(B) not less than two representatives of nonprofit 
organizations with a history of working with minority 
farmers and ranchers; 
(C) not less than two civil rights professionals; 
(D) not less than two representatives of institutions 
of higher education with demonstrated experience working 
with minority farmers and ranchers; and 
(E) such other persons as the Secretary considers 
appropriate. 
(2) EX-OFFICIO MEMBERS.—The Secretary may appoint such 
employees of the Department of Agriculture as the Secretary 
considers appropriate to serve as ex-officio members of the 
Committee. 
SEC. 14009. NATIONAL APPEALS DIVISION. 
Section 280 of the Department of Agriculture Reorganization 
Act of 1994 (7 U.S.C. 7000) is amended— 
(1) by striking ‘‘On the return’’ and inserting the following: 
‘‘(a) IN GENERAL.—On the return’’; and 
(2) by adding at the end the following: 
‘‘(b) REPORTS.—
H. R. 2419—525 
‘‘(1) IN GENERAL.—Not later than 180 days after the date 
of the enactment of this subsection, and every 180 days there-
after, the head of each agency shall submit to the Committee 
on Agriculture of the House of Representatives and the Com-
mittee on Agriculture, Nutrition, and Forestry of the Senate, 
and publish on the website of the Department, a report that 
includes— 
‘‘(A) a description of all cases returned to the agency 
during the period covered by the report pursuant to a 
final determination of the Division; 
‘‘(B) the status of implementation of each final deter-
mination; and 
‘‘(C) if the final determination has not been imple-
mented— 
‘‘(i) the reason that the final determination has 
not been implemented; and 
‘‘(ii) the projected date of implementation of the 
final determination. 
‘‘(2) UPDATES.—Each month, the head of each agency shall 
publish on the website of the Department any updates to the 
reports submitted under paragraph (1).’’. 
SEC. 14010. REPORT OF CIVIL RIGHTS COMPLAINTS, RESOLUTIONS, 
AND ACTIONS. 
Each year, the Secretary shall— 
(1) prepare a report that describes, for each agency of 
the Department of Agriculture— 
(A) the number of civil rights complaints filed that 
relate to the agency, including whether a complaint is 
a program complaint or an employment complaint; 
(B) the length of time the agency took to process each 
civil rights complaint; 
(C) the number of proceedings brought against the 
agency, including the number of complaints described in 
paragraph (1) that were resolved with a finding of discrimi-
nation; and 
(D) the number and type of personnel actions taken 
by the agency following resolution of civil rights complaints; 
(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 copy of the report; and 
(3) make the report available to the public by posting 
the report on the website of the Department. 
SEC. 14011. SENSE OF CONGRESS RELATING TO CLAIMS BROUGHT 
BY SOCIALLY DISADVANTAGED FARMERS OR RANCHERS. 
It is the sense of Congress that all pending claims and class 
actions brought against the Department of Agriculture by socially 
disadvantaged farmers or ranchers (as defined in section 355(e) 
of the Consolidated Farm and Rural Development Act (7 U.S.C. 
2003(e)), including Native American, Hispanic, and female farmers 
or ranchers, based on racial, ethnic, or gender discrimination in 
farm program participation should be resolved in an expeditious 
and just manner. 
SEC. 14012. DETERMINATION ON MERITS OF PIGFORD CLAIMS. 
(a) DEFINITIONS.—In this section:
H. R. 2419—526 
(1) CONSENT DECREE.—The term ‘‘consent decree’’ means 
the consent decree in the case of Pigford v. Glickman, approved 
by the United States District Court for the District of Columbia 
on April 14, 1999. 
(2) DEPARTMENT.—The term ‘‘Department’’ means the 
Department of Agriculture. 
(3) PIGFORD CLAIM.—The term ‘‘Pigford claim’’ means a 
discrimination complaint, as defined by section 1(h) of the con-
sent decree and documented under section 5(b) of the consent 
decree. 
(4) PIGFORD
CLAIMANT.—The term ‘‘Pigford claimant’’ 
means an individual who previously submitted a late-filing 
request under section 5(g) of the consent decree. 
(b) DETERMINATION
ON MERITS.—Any Pigford claimant who 
has not previously obtained a determination on the merits of a 
Pigford claim may, in a civil action brought in the United States 
District Court for the District of Columbia, obtain that determina-
tion. 
(c) LIMITATION.— 
(1) IN GENERAL.—Subject to paragraph (2), all payments 
or debt relief (including any limitation on foreclosure under 
subsection (h)) shall be made exclusively from funds made 
available under subsection (i). 
(2) MAXIMUM AMOUNT.—The total amount of payments and 
debt relief pursuant to actions commenced under subsection 
(b) shall not exceed $100,000,000. 
(d) INTENT OF CONGRESS AS TO REMEDIAL NATURE OF SEC-
TION.—It is the intent of Congress that this section be liberally 
construed so as to effectuate its remedial purpose of giving a full 
determination on the merits for each Pigford claim previously 
denied that determination. 
(e) LOAN DATA.— 
(1) REPORT TO PERSON SUBMITTING PETITION.— 
(A) IN GENERAL.—Not later than 120 days after the 
Secretary receives notice of a complaint filed by a claimant 
under subsection (b), the Secretary shall provide to the 
claimant a report on farm credit loans and noncredit bene-
fits, as appropriate, made within the claimant’s county 
(or if no documents are found, within an adjacent county 
as determined by the claimant), by the Department during 
the period beginning on January 1 of the year preceding 
the period covered by the complaint and ending on 
December 31 of the year following the period. 
(B) REQUIREMENTS.—A report under subparagraph (A) 
shall contain information on all persons whose application 
for a loan or benefit was accepted, including— 
(i) the race of the applicant; 
(ii) the date of application; 
(iii) the date of the loan or benefit decision, as 
appropriate; 
(iv) the location of the office making the loan or 
benefit decision, as appropriate; 
(v) all data relevant to the decisionmaking process 
for the loan or benefit, as appropriate; and 
(vi) all data relevant to the servicing of the loan 
or benefit, as appropriate.