H. R. 2—149 
‘‘(a) AUTHORIZATION TO ACCEPT AND REDEEM BENEFITS.— 
‘‘(1) APPLICATIONS.— 
‘‘(A) IN GENERAL.—Regulations’’, 
(2) in subsection (a) by adding at the end the following: 
‘‘(4) ELECTRONIC
BENEFIT
TRANSFER
EQUIPMENT
AND 
SERVICE PROVIDERS.—Before implementing clause (iv) of para-
graph (1)(B), the Secretary shall issue guidance for retail food 
stores on how to select electronic benefit transfer equipment 
and service providers that are able to meet the requirements 
of that clause.’’, and 
(3) in the 1st sentence of subsection (c) by inserting ‘‘records 
relating to electronic benefit transfer equipment and related 
services, transaction and redemption data provided through 
the electronic benefit transfer system,’’ after ‘‘purchase 
invoices,’’. 
SEC. 4007. REVIEW OF SUPPLEMENTAL NUTRITION ASSISTANCE PRO-
GRAM OPERATIONS. 
Section 9 of the Food and Nutrition Act of 2008 (7 U.S.C. 
2018) is amended by adding at the end the following: 
‘‘(i) REVIEW OF PROGRAM OPERATIONS.— 
‘‘(1) REVIEW BY THE SECRETARY.—The Secretary— 
‘‘(A) shall review a representative sample of currently 
authorized facilities referred to in section 3(k)(3) to deter-
mine whether benefits are properly used by or on behalf 
of participating households residing in such facilities and 
whether such facilities are using more than 1 source of 
Federal or State funding to meet the food needs of resi-
dents; 
‘‘(B) may carry out similar reviews for currently partici-
pating residential drug and alcohol treatment and 
rehabilitation programs, and group living arrangements 
for the blind and disabled, referred to in section 3(k); 
‘‘(C) shall gather information, and such facilities, pro-
grams, and arrangements shall be required to submit 
information deemed necessary for a full and thorough 
review; and 
‘‘(D) shall report the results of these reviews to the 
Committee on Agriculture of the House of Representatives 
and the Committee on Agriculture, Nutrition, and Forestry 
of the Senate not later than 18 months after the date 
of the enactment of the Agriculture Improvement Act of 
2018, along with recommendations regarding— 
‘‘(i) any additional requirements or oversight that 
would be appropriate for such facilities, programs, and 
arrangements; and 
‘‘(ii) 
whether 
such 
facilities, 
programs, 
and 
arrangements should continue to be authorized to 
participate in the supplemental nutrition assistance 
program. 
‘‘(2) 
LIMITATION.—Nothing 
in 
this 
subsection 
shall 
authorize the Secretary to deny any application for continued 
authorization, any application for authorization, or any request 
to withdraw the authorization of any such facility, program, 
or arrangement based on a determination that residents of 
any such facility or entity are residents of an institution for
H. R. 2—150 
a period of 18 months from the date of enactment of the 
Agriculture Improvement Act of 2018.’’. 
SEC. 4008. RETAIL INCENTIVES. 
Section 9 of the Food and Nutrition Act of 2008 (7 U.S.C. 
2018), as amended by section 4007, is amended by adding at the 
end the following: 
‘‘(j) INCENTIVES.— 
‘‘(1) DEFINITION OF ELIGIBLE INCENTIVE FOOD.—In this sub-
section, the term ‘eligible incentive food’ means— 
‘‘(A) a staple food that is identified for increased 
consumption, consistent with the most recent dietary rec-
ommendations; and 
‘‘(B) a fruit, vegetable, dairy, whole grain, or product 
thereof. 
‘‘(2) GUIDANCE.— 
‘‘(A) IN GENERAL.—The Secretary shall issue guidance 
to clarify the process by which an approved retail food 
store may seek a waiver to offer an incentive, which may 
be used only for the purchase of an eligible incentive food 
at the point of purchase, to a household purchasing food 
with benefits issued under this Act. 
‘‘(B) GUIDANCE.—The guidance under subparagraph (A) 
shall establish a process under which an approved retail 
food store, prior to carrying out an incentive program under 
this subsection, shall provide to the Secretary information 
describing the incentive program, including— 
‘‘(i) the types of incentives that will be offered; 
‘‘(ii) the types of foods that will be incentivized 
for purchase; and 
‘‘(iii) an explanation of how the incentive program 
intends to support meeting dietary intake goals. 
‘‘(3) NO LIMITATION ON BENEFITS.—A waiver granted under 
this subsection shall not be used to carry out any activity 
that limits the use of benefits under this Act or any other 
Federal nutrition law. 
‘‘(4) EFFECT.—Guidance provided under this subsection 
shall not affect any requirements under section 4405 of the 
Food, Conservation, and Energy Act of 2008 (7 U.S.C. 7517), 
including the eligibility of a retail food store to participate 
in a project funded under such section. 
‘‘(5) REPORT.—The Secretary shall submit to the Committee 
on Agriculture of the House of Representatives and the Com-
mittee on Agriculture, Nutrition, and Forestry of the Senate 
an annual report describing the types of incentives approved 
under this subsection.’’. 
SEC. 4009. REQUIRED ACTION ON DATA MATCH INFORMATION. 
Section 11(e) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2020(e)) is amended— 
(1) in paragraph (24) by striking ‘‘and’’ after the semicolon, 
(2) in paragraph (25) by striking the period at the end 
and inserting ‘‘; and’’, and 
(3) by adding at the end the following: 
‘‘(26) that for a household participating in the supplemental 
nutrition assistance program, the State agency shall pursue 
clarification and verification, if applicable, of information 
relating to the circumstances of the household received from
H. R. 2—151 
data matches for the purpose of ensuring an accurate eligibility 
and benefit determination, only if the information— 
‘‘(A) 
appears 
to 
present 
significantly 
conflicting 
information from the information that was used by the 
State agency at the time of certification of the household; 
‘‘(B) is obtained from data matches carried out under 
subsection (q), (r), or (x); or 
‘‘(C)(i) is less than 60 days old relative to the current 
month of participation of the household; and 
‘‘(ii) if accurate, would have been required to be 
reported by the household based on the reporting require-
ments assigned to the household by the State agency under 
section 6(c).’’. 
SEC. 4010. INCENTIVIZING TECHNOLOGY MODERNIZATION. 
Section 11(t) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2020(t)) is amended— 
(1) by striking the heading and inserting ‘‘GRANTS FOR 
SIMPLIFIED APPLICATION AND ELIGIBILITY DETERMINATION SYS-
TEMS AND IMPROVED ACCESS TO BENEFITS’’, 
(2) in paragraph (1) by striking ‘‘implement—’’ and all 
that follows through the period at the end, and inserting ‘‘imple-
ment supplemental nutrition assistance program simplified 
application and eligibility determination systems.’’, and 
(3) in paragraph (2)— 
(A) by amending subparagraph (B) to read as follows: 
‘‘(B) establishing enhanced technological methods that 
improve the administrative infrastructure used in proc-
essing applications and determining eligibility; or’’, 
(B) by striking subparagraphs (C) and (D), and 
(C) by redesignating subparagraph (E) as subpara-
graph (C). 
SEC. 4011. INTERSTATE DATA MATCHING TO PREVENT MULTIPLE 
ISSUANCES. 
Section 11 of the Food and Nutrition Act of 2008 (7 U.S.C. 
2020), as amended by section 4005(c), is amended by adding at 
the end the following: 
‘‘(x) NATIONAL ACCURACY CLEARINGHOUSE.— 
‘‘(1) DEFINITION OF INDICATION OF MULTIPLE ISSUANCE.— 
In this subsection, the term ‘indication of multiple issuance’ 
means an indication, based on a computer match, that supple-
mental nutrition assistance program benefits are being issued 
to an individual by more than 1 State agency simultaneously. 
‘‘(2) ESTABLISHMENT.— 
‘‘(A) IN GENERAL.—The Secretary shall establish an 
interstate data system, to be known as the ‘National 
Accuracy Clearinghouse’, to prevent multiple issuances of 
supplemental nutrition assistance program benefits to an 
individual by more than 1 State agency simultaneously. 
‘‘(B) DATA MATCHING.—The Secretary shall require that 
State agencies make available to the National Accuracy 
Clearinghouse only such information as is necessary for 
the purpose described in subparagraph (A). 
‘‘(C) DATA PROTECTION.—The information made avail-
able by State agencies under subparagraph (B)— 
‘‘(i) shall be used only for the purpose described 
in subparagraph (A);
H. R. 2—152 
‘‘(ii) shall be exempt from the disclosure require-
ments of section 552(a) of title 5 of the United States 
Code pursuant to section 552(b)(3) of title 5 of the 
United States Code, to the extent such information 
is obtained or received by the Secretary; 
‘‘(iii) shall not be retained for longer than is nec-
essary to accomplish the purpose in subparagraph (A); 
‘‘(iv) shall be used in a manner that protects the 
identity and location of a vulnerable individual 
(including a victim of domestic violence) that is an 
applicant for, or recipient of, supplemental nutrition 
assistance program benefits; and 
‘‘(v) shall meet security standards as determined 
by the Secretary. 
‘‘(3) ISSUANCE OF INTERIM FINAL REGULATIONS.—Not later 
than 18 months after the date of enactment of the Agriculture 
Improvement Act of 2018, the Secretary shall promulgate regu-
lations (which shall include interim final regulations) to carry 
out this subsection that— 
‘‘(A) incorporate best practices and lessons learned from 
the pilot program under section 4032(c) of the Agricultural 
Act of 2014 (7 U.S.C. 2036c(c)); 
‘‘(B) require a State agency to take appropriate action, 
as determined by the Secretary, with respect to each indica-
tion of multiple issuance of supplemental nutrition assist-
ance program benefits, or each indication that an individual 
receiving such benefits in 1 State has applied to receive 
such benefits in another State, while ensuring timely and 
fair service to applicants for, and recipients of, such bene-
fits; 
‘‘(C) establish standards to limit and protect the 
information submitted through or retained by the National 
Accuracy Clearinghouse consistent with paragraph (2)(C); 
‘‘(D) establish safeguards to protect— 
‘‘(i) the information submitted through or retained 
by the National Accuracy Clearinghouse, including by 
limiting the period of time that information is retained 
to the period necessary to accomplish the purpose 
described in paragraph (2)(A); and 
‘‘(ii) the privacy of information that is submitted 
through or retained by the National Accuracy Clearing-
house consistent with subsection (e)(8); and 
‘‘(E) include such other rules and standards the Sec-
retary determines appropriate to carry out this subsection. 
‘‘(4) TIMING.—The initial match and corresponding actions 
required by paragraph (3)(B) shall occur within 3 years after 
the date of the enactment of the Agriculture Improvement 
Act of 2018.’’. 
SEC. 4012. REQUIREMENT OF LIVE-PRODUCTION ENVIRONMENTS FOR 
CERTAIN PILOT PROJECTS RELATING TO COST SHARING 
FOR COMPUTERIZATION. 
Section 16(g)(1) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2025(g)(1)) is amended— 
(1) in subparagraph (F) by redesignating clauses (i) and 
(ii) as subclauses (I) and (II), respectively, and indenting appro-
priately;
H. R. 2—153 
(2) by redesignating subparagraphs (A) through (F) as 
clauses (i) through (vi), respectively, and indenting appro-
priately; 
(3) in the matter preceding clause (i), as so redesignated— 
(A) by striking ‘‘paragraphs (2) and (3)’’ and inserting 
‘‘paragraph (2)’’; and 
(B) by striking ‘‘in the planning’’ and inserting the 
following: ‘‘in the— 
‘‘(A) planning’’, 
(4) in clause (v), as so redesignated, of subparagraph (A), 
as so designated, by striking ‘‘implementation, including 
through pilot projects in limited areas for major systems 
changes as determined under rules promulgated by the Sec-
retary, data from which’’ and inserting the following: 
‘‘implementation, including a requirement that— 
‘‘(I) such testing shall be accomplished through 
pilot projects in limited areas for major systems 
changes (as determined under rules promulgated 
by the Secretary); 
‘‘(II) each pilot project described in subclause 
(I) that is carried out before the implementation 
of a system shall be conducted in a live-production 
environment; and 
‘‘(III) the data resulting from each pilot project 
carried out under this clause’’; 
(5) in clause (vi), as so redesignated, by striking the period 
at end and inserting ‘‘; and’’, and 
(6) by adding at the end the following: 
‘‘(B) operation of 1 or more automatic data processing 
and information retrieval systems that the Secretary deter-
mines may continue to be operated in accordance with 
clauses (i) through (vii) of subparagraph (A).’’. 
SEC. 4013. QUALITY CONTROL IMPROVEMENTS. 
(a) RECORDS.—Section 11(a)(3)(B) of the Food and Nutrition 
Act of 2008 (7 U.S.C. 2020(a)(3)(B)) is amended— 
(1) by striking ‘‘Records described’’ and inserting ‘‘All 
records, and the entire information systems in which records 
are contained, that are covered’’, and 
(2) by amending clause (i) to read as follows: 
‘‘(i) be made available for inspection and audit 
by the Secretary, subject to data and security protocols 
agreed to by the State agency and Secretary;’’. 
(b) QUALITY CONTROL SYSTEM.—Section 16(c)(1)(B) of the Food 
and Nutrition Act of 2008 (7 U.S.C. 2025(c)(1)(B)) is amended 
to read as follows: 
‘‘(B) QUALITY CONTROL SYSTEM INTEGRITY.— 
‘‘(i) IN GENERAL.—Not later than 180 days after 
the date of enactment of the Agriculture Improvement 
Act of 2018, the Secretary shall issue interim final 
regulations that— 
‘‘(I) ensure that the quality control system 
established under this subsection produces valid 
statistical results; 
‘‘(II) provide for oversight of contracts entered 
into by a State agency for the purpose of improving 
payment accuracy;
H. R. 2—154 
‘‘(III) ensure the accuracy of data collected 
under the quality control system established under 
this subsection; and 
‘‘(IV) for each fiscal year, to the maximum 
extent practicable, provide for the evaluation of 
the integrity of the quality control process of not 
fewer than 2 State agencies, selected in accordance 
with criteria determined by the Secretary. 
‘‘(ii) DEBARMENT.—In accordance with the non-
procurement debarment procedures under part 417 of 
title 2, Code of Federal Regulations, or successor regu-
lations, the Secretary shall debar any person that, 
in carrying out the quality control system established 
under this subsection, knowingly submits, or causes 
to be submitted, false information to the Secretary.’’. 
(c) REPORTING REQUIREMENTS.—The 1st sentence of section 
16(c)(4) of the Food and Nutrition Act of 2008 (7 U.S.C. 2025(c)(4)) 
is amended by inserting ‘‘, including providing access to applicable 
State records and the entire information systems in which the 
records are contained,’’ after ‘‘necessary’’. 
(d) STATE PERFORMANCE INDICATORS.—Section 16(d) of the Food 
and Nutrition Act of 2008 (7 U.S.C. 2025(d)) is amended— 
(1) by striking the heading and inserting ‘‘STATE PERFORM-
ANCE INDICATORS’’, 
(2) in paragraph (2)— 
(A) in the heading by striking ‘‘AND THEREAFTER’’ and 
inserting ‘‘THROUGH 2017’’, 
(B) in subparagraph (A) by striking ‘‘and each fiscal 
year thereafter’’ and inserting ‘‘through fiscal year 2017’’, 
and 
(C) in subparagraph (B) by striking ‘‘and each fiscal 
year thereafter’’ and inserting ‘‘through fiscal year 2017’’, 
and 
(3) by adding at the end the following: 
‘‘(6) FISCAL YEAR 2018 AND FISCAL YEARS THEREAFTER.— 
‘‘(A) With respect to fiscal year 2018 and each fiscal 
year thereafter, the Secretary shall establish, by regulation, 
performance criteria relating to— 
‘‘(i) actions taken to correct errors, reduce rates 
of error, and improve eligibility determinations; and 
‘‘(ii) other indicators of effective administration 
determined by the Secretary. 
‘‘(B) The Secretary shall not award performance bonus 
payments to State agencies in fiscal year 2019 for fiscal 
year 2018 performance.’’. 
(e) COST SHARING FOR COMPUTERIZATION.—Section 16(g)(1)(A) 
of the Food and Nutrition Act of 2008 (7 U.S.C. 2025(g)(1)(A)), 
as amended by section 4012, is amended— 
(1) in clause (v)(III) by striking ‘‘and’’, and 
(2) by adding at the end the following: 
‘‘(vii) would be accessible by the Secretary for 
inspection and audit under section 11(a)(3)(B); and’’. 
SEC. 4014. EVALUATION OF CHILD SUPPORT ENFORCEMENT COOPERA-
TION REQUIREMENTS. 
Section 17 of the Food and Nutrition Act of 2008 (7 U.S.C. 
2026) is amended by adding at the end the following:
H. R. 2—155 
‘‘(m) EVALUATION OF CHILD SUPPORT ENFORCEMENT COOPERA-
TION REQUIREMENTS.— 
‘‘(1) IN GENERAL.—The Secretary, in consultation with the 
Secretary of Health and Human Services, shall conduct an 
independent evaluation of a representative sample of States— 
‘‘(A) to assess the implementation and impact of the 
eligibility requirements described in subsections (l) through 
(n) of section 6 in States that have formerly implemented 
or continue to implement those requirements, and the feasi-
bility of implementing those requirements in other States; 
‘‘(B) to assess the factors that contributed to the deci-
sion of States that formerly implemented the eligibility 
requirements described in each of subsections (l) through 
(n) of section 6 to cease such implementation; 
‘‘(C) to review alternatives to the eligibility require-
ments described in each of subsections (l) through (n) of 
section 6 that are used by other States to assist participants 
in the supplemental nutrition assistance program to make 
or receive child support payments and the effectiveness 
of those alternatives; and 
‘‘(D) to evaluate the costs and benefits to households 
and to State agencies, of requiring State agencies to imple-
ment each of the eligibility requirements described in sub-
sections (l) through (n) of section 6. 
‘‘(2) EVALUATION.—The evaluation under paragraph (1) 
shall include, to the maximum extent practicable, an assess-
ment of— 
‘‘(A) the manner in which applicable State agencies 
implement 
and 
enforce 
the 
eligibility 
requirements 
described 
in 
subparagraph 
(A) 
of 
such 
paragraph, 
including— 
‘‘(i) the procedures used by each State to determine 
cooperation, to sanction participants for failure to 
cooperate, and to determine good cause for noncoopera-
tion under each of subsections (l) through (n) of section 
6; and 
‘‘(ii) the manner in which each State aligns the 
procedures for implementing those eligibility require-
ments with procedures for implementing other Federal 
programs that require cooperation with child support 
enforcement, including the program of block grants 
to States for temporary assistance for needy families 
established under part A of title IV of the Social Secu-
rity Act (42 U.S.C. 601 et seq.), the Medicaid program 
under title XIX of the Social Security Act (42 U.S.C. 
1396 et seq.), and programs carried out under the 
Child Care and Development Block Grant Act of 1990 
(42 U.S.C. 9857 et seq.); 
‘‘(B) the Federal, State, and local costs associated with 
implementing those eligibility requirements, including costs 
incurred under this Act and by child support enforcement 
agencies for personnel, technology upgrades, and other 
costs; 
‘‘(C) the effect of those eligibility requirements on the 
establishment of new child support orders, the establish-
ment of paternity, changes in child support payments to
H. R. 2—156 
custodial households, and changes in arrears owed on child 
support orders; 
‘‘(D) with respect to the eligibility requirements under 
each of subsections (l) through (n) of section 6— 
‘‘(i) the number of individuals subject to those 
requirements; 
‘‘(ii) the number of individuals in each State who 
meet those requirements; and 
‘‘(iii) the number of individuals in each State who 
fail to meet those requirements; 
‘‘(E) the number of individuals in each State for whom 
good cause for noncooperation has been found under section 
6(l)(2); 
‘‘(F) the impact of those eligibility requirements on 
the supplemental nutrition assistance program eligibility, 
benefit levels, food security, income, and economic stability 
of— 
‘‘(i) individuals subject to those requirements; 
‘‘(ii) the household members of those individuals, 
including children; and 
‘‘(iii) households with nontraditional family struc-
tures, including a household in which a grandparent 
is the primary caretaker of a grandchild of the grand-
parent. 
‘‘(3) STATE
AGENCY
COOPERATION.—Each State agency 
selected under paragraph (1) shall provide information to the 
Secretary necessary to conduct the evaluation under such para-
graph. 
‘‘(4) REPORT.—Not later than 3 years after the date of 
enactment of the Agriculture Improvement Act of 2018, the 
Secretary shall submit to the Committee on Agriculture of 
the House of Representatives and the Committee on Agri-
culture, Nutrition, and Forestry of the Senate a report 
describing the findings from the evaluation conducted under 
paragraph (1).’’. 
SEC. 4015. LONGITUDINAL DATA FOR RESEARCH. 
(a) LONGITUDINAL DATA.—Section 17 of the Food and Nutrition 
Act of 2008 (7 U.S.C. 2026), as amended by section 4014, is amended 
by adding at the end the following: 
‘‘(n) LONGITUDINAL DATA FOR RESEARCH.— 
‘‘(1) IN GENERAL.—Subject to paragraphs (3) through (5), 
a State agency may, on approval by the Secretary, establish 
a longitudinal database that contains information about house-
holds and members of households that receive benefits under 
the supplemental nutrition assistance program in the State. 
‘‘(2) PURPOSE.—Each longitudinal database established 
under paragraph (1) shall be used solely to conduct research 
on participation in and the operation of the supplemental nutri-
tion assistance program, including duration of participation 
in the program. 
‘‘(3) REQUIREMENTS FOR DATABASES.—Prior to the approval 
of State agencies to establish longitudinal databases under 
paragraph (1), the Secretary shall—
H. R. 2—157 
‘‘(A) identify features that shall be standard across 
States such as database format to facilitate use of longitu-
dinal databases established under paragraph (1) for 
research purposes; 
‘‘(B) identify features of longitudinal databases estab-
lished under paragraph (1) that may vary across States; 
‘‘(C) identify a procedure for States operating longitu-
dinal databases under paragraph (1) to use a unique identi-
fier to provide relevant information on household members 
who receive benefits under the supplemental nutrition 
assistance program for the purpose of comparing participa-
tion data in multiple participating States over time while 
protecting participant privacy; 
‘‘(D) establish the manner in which data security and 
privacy protections, as required by Federal law and con-
sistent with other appropriate practices, shall be imple-
mented and maintained; 
‘‘(E) provide direction to State agencies on the respon-
sibilities of and funding arrangements for State agencies 
and any State contractors (including entities providing 
technical assistance) relating to the establishment and 
operation of a longitudinal database; 
‘‘(F) provide a description of the documentation that 
States shall submit to the Secretary prior to allowing 
researchers access to a longitudinal database; 
‘‘(G) consult with other Federal research agencies, 
including the Bureau of the Census; 
‘‘(H) consult with States that have already established 
databases used for purposes similar to the purposes out-
lined in this subsection; and 
‘‘(I) identify any other requirements determined appro-
priate by the Secretary. 
‘‘(4) INCLUDED DATA.— 
‘‘(A) IN GENERAL.—Subject to subparagraph (B), each 
longitudinal database established under paragraph (1)— 
‘‘(i) shall include monthly information about house-
holds and members of households that receive benefits 
under the supplemental nutrition assistance program 
in the participating State taken from existing informa-
tion collected by the State agency including, if avail-
able,— 
‘‘(I) demographic characteristics; 
‘‘(II) income and financial resources (as 
described in section 5(g)); 
‘‘(III) employment status; 
‘‘(IV) household circumstances, such as deduct-
ible expenses; and 
‘‘(V) the amount of the monthly allotment 
received under the supplemental nutrition assist-
ance program; and 
‘‘(ii) may include information from other State data 
sources such as— 
‘‘(I) earnings and employment data from the 
State department of labor; 
‘‘(II) health insurance program data; or 
‘‘(III) data from participation in other pro-
grams administered by the State.
H. R. 2—158 
‘‘(B) DATA
PROTECTION.—Any State that establishes 
a longitudinal database under paragraph (1) shall, in 
accordance with all applicable Federal and State privacy 
standards and requirements— 
‘‘(i) protect the privacy of information about each 
member of each household that receives benefits under 
the supplemental nutrition assistance program in such 
State by ensuring that no personally identifiable 
information (including social security number, home 
address, or contact information) is included in the 
longitudinal database; and 
‘‘(ii) make the data under this paragraph available 
to researchers and the Secretary. 
‘‘(5) APPROVAL.—The Secretary shall approve the establish-
ment of longitudinal databases under paragraph (1) in States 
that— 
‘‘(A) meet the requirements for databases under para-
graph (3) and (4)(B); 
‘‘(B) reflect a range of participant numbers, demo-
graphics, operational structures, and geographic regions; 
and 
‘‘(C) have the capacity to provide on a periodic and 
ongoing basis household and participant data derived from 
the eligibility system and other data sources of the State. 
‘‘(6) GRANTS.— 
‘‘(A) IN GENERAL.—In carrying out this subsection, the 
Secretary may provide grants to States that have been 
approved by the Secretary in accordance with paragraph 
(5) out of funds made available under paragraph (9). 
‘‘(B) METHOD OF AWARDING GRANTS.—Grants awarded 
under this paragraph shall be made in such amounts and 
under such terms and conditions as the Secretary deter-
mines necessary to carry out the purposes of this sub-
section. 
‘‘(7) REPORT.— 
‘‘(A) IN GENERAL.—Not later than 4 years after the 
effective date of this subsection, the Secretary shall submit 
to the Committee on Agriculture of the House of Represent-
atives and the Committee on Agriculture, Nutrition, and 
Forestry of the Senate a report on the feasibility of 
expanding implementation of longitudinal databases to 
every State. 
‘‘(B) CONTENTS.—The report required under subpara-
graph (A) shall describe— 
‘‘(i) the cost of expanding implementation of 
longitudinal databases with consistent data to every 
State; 
‘‘(ii) the challenges and benefits of using State 
longitudinal databases with consistent data; and 
‘‘(iii) alternatives to expanding implementation of 
longitudinal databases with consistent data to every 
State that may achieve similar research outcomes and 
the advantages and disadvantages of those alter-
natives. 
‘‘(8) EFFECT.—Nothing in this subsection shall be construed 
to prevent or limit the ability of State agencies to establish
H. R. 2—159 
or continue operating databases used for purposes similar to 
the purposes outlined in this subsection. 
‘‘(9) FUNDING.—Of the funds made available under section 
18, the Secretary shall use to carry out this subsection— 
‘‘(A) $20,000,000 for fiscal year 2019 to remain avail-
able through fiscal year 2021; and 
‘‘(B) $5,000,000 for fiscal year 2022 and each fiscal 
year thereafter.’’. 
(b) CONFORMING AMENDMENT.—The 1st sentence of section 
16(a) of the Food and Nutrition Act of 2008 is amended— 
(1) by striking ‘‘and (8)’’ and inserting ‘‘(8)’’; and 
(2) by inserting ‘‘, and (9) establishing and operating a 
longitudinal database in accordance with section 17(n)’’ before 
‘‘: Provided’’. 
SEC. 4016. AUTHORIZATION OF APPROPRIATIONS. 
The 1st sentence of section 18(a)(1) of the Food and Nutrition 
Act of 2008 (7 U.S.C. 2027(a)(1)) is amended by striking ‘‘2018’’ 
and inserting ‘‘2023’’. 
SEC. 4017. ASSISTANCE FOR COMMUNITY FOOD PROJECTS. 
Section 25(b)(2) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2034(b)(2)) is amended— 
(1) in subparagraph (B) by striking ‘‘and’’ at the end, 
(2) in subparagraph (C) by striking ‘‘fiscal year 2015 and 
each fiscal year thereafter.’’ and inserting ‘‘each of fiscal years 
2015 through 2018; and’’, and 
(3) by adding at the end the following: 
‘‘(D) $5,000,000 for fiscal year 2019 and each fiscal 
year thereafter.’’. 
SEC. 4018. EMERGENCY FOOD ASSISTANCE PROGRAM. 
(a) STATE PLAN.—Section 202A(b) of the Emergency Food 
Assistance Act of 1983 (7 U.S.C. 7503(b)) is amended— 
(1) in paragraph (3), by striking ‘‘and’’ after the semicolon; 
(2) in paragraph (4), by striking the period at the end 
and inserting a semicolon; and 
(3) by adding at the end the following: 
‘‘(5) at the option of the State agency, describe a plan 
of operation for 1 or more projects in partnership with 1 or 
more emergency feeding organizations located in the State to 
harvest, process, package, or transport donated commodities 
received under section 203D(d); and 
‘‘(6) describe a plan, which may include the use of a State 
advisory board established under subsection (c), that provides 
emergency feeding organizations or eligible recipient agencies 
within the State an opportunity to provide input on the com-
modity preferences and needs of the emergency feeding 
organization or eligible recipient agency.’’. 
(b) STATE AND LOCAL SUPPLEMENTATION OF COMMODITIES.— 
Section 203D of the Emergency Food Assistance Act of 1983 (7 
U.S.C. 7507) is amended by adding at the end the following: 
‘‘(d) PROJECTS TO HARVEST, PROCESS, PACKAGE, OR TRANSPORT 
DONATED COMMODITIES.— 
‘‘(1) DEFINITION OF PROJECT.—In this subsection, the term 
‘project’ means the harvesting, processing, packaging, or 
transportation of unharvested, unprocessed, or unpackaged 
commodities donated by agricultural producers, processors, or
H. R. 2—160 
distributors for use by emergency feeding organizations under 
subsection (a). 
‘‘(2) FEDERAL FUNDING FOR PROJECTS.— 
‘‘(A) IN GENERAL.—Subject to subparagraphs (B) and 
(C) and paragraph (3), using funds made available under 
paragraph (5), the Secretary may provide funding to States 
to pay for the costs of carrying out a project. 
‘‘(B) FEDERAL SHARE.—The Federal share of the cost 
of a project under subparagraph (A) shall not exceed 50 
percent of the total cost of the project. 
‘‘(C) ALLOCATION.— 
‘‘(i) IN GENERAL.—Each fiscal year, the Secretary 
shall allocate the funds made available under subpara-
graph (A), based on a formula determined by the Sec-
retary, to States that have submitted a State plan 
describing a plan of operation for a project under sec-
tion 202A(b)(5). 
‘‘(ii) REALLOCATION.—If the Secretary determines 
that a State will not expend all of the funds allocated 
to the State for a fiscal year under clause (i), the 
Secretary shall reallocate the unexpended funds to 
other States that have submitted under section 
202A(b)(5) a State plan describing a plan of operation 
for a project during that fiscal year or the subsequent 
fiscal year, as the Secretary determines appropriate. 
‘‘(iii) REPORTS.—Each State to which funds are 
allocated for a fiscal year under this subparagraph 
shall, on a regular basis, submit to the Secretary finan-
cial reports describing the use of the funds. 
‘‘(3) PROJECT PURPOSES.—A State may only use Federal 
funds received under paragraph (2) for a project the purposes 
of which are— 
‘‘(A) to reduce food waste at the agricultural production, 
processing, or distribution level through the donation of 
food; 
‘‘(B) to provide food to individuals in need; and 
‘‘(C) to build relationships between agricultural pro-
ducers, processors, and distributors and emergency feeding 
organizations through the donation of food. 
‘‘(4) 
COOPERATIVE
AGREEMENTS.—The 
Secretary 
may 
encourage a State agency that carries out a project using Fed-
eral funds received under paragraph (2) to enter into coopera-
tive agreements with State agencies of other States under 
section 203B(d) to maximize the use of commodities donated 
under the project. 
‘‘(5) FUNDING.—Out of funds not otherwise appropriated, 
the Secretary of the Treasury shall transfer to the Secretary 
to carry out this subsection $4,000,000 for each of fiscal years 
2019 through 2023, to remain available until the end of the 
subsequent fiscal year.’’. 
(c) FOOD WASTE.—Section 203D of the Emergency Food Assist-
ance Act of 1983 (7 U.S.C. 7507), as amended by subsection (b), 
is amended by adding at the end the following: 
‘‘(e) FOOD WASTE.—The Secretary shall issue guidance outlining 
best practices to minimize the food waste of the commodities 
donated under subsection (a).’’.
H. R. 2—161 
(d) EMERGENCY FOOD PROGRAM INFRASTRUCTURE GRANTS.— 
Section 209(d) of the Emergency Food Assistance Act of 1983 (7 
U.S.C. 7511a(d)) is amended by striking ‘‘2018’’ and inserting 
‘‘2023’’. 
(e) AVAILABILITY OF COMMODITIES FOR THE EMERGENCY FOOD 
ASSISTANCE PROGRAM.—Section 27(a) of the Food and Nutrition 
Act of 2008 (7 U.S.C. 2036(a)) is amended— 
(1) in paragraph (1), by striking ‘‘2018’’ and inserting 
‘‘2023’’; and 
(2) in paragraph (2)— 
(A) in subparagraph (C), by striking ‘‘2018’’ and 
inserting ‘‘2023’’; 
(B) in subparagraph (D)— 
(i) in the matter preceding clause (i), by striking 
‘‘2018’’ and inserting ‘‘2023’’; 
(ii) in clause (iii), by striking ‘‘and’’ after the semi-
colon; 
(iii) in clause (iv), by striking ‘‘and’’ after the semi-
colon; 
(iv) by adding at the end the following: 
‘‘(v) for fiscal year 2019, $23,000,000; 
‘‘(vi) for fiscal year 2020, $35,000,000; 
‘‘(vii) for fiscal year 2021, $35,000,000; 
‘‘(viii) for fiscal year 2022, $35,000,000; and 
‘‘(ix) for fiscal year 2023, $35,000,000; and’’; and 
(C) in subparagraph (E)— 
(i) by striking ‘‘2019’’ and inserting ‘‘2024’’; 
(ii) by striking ‘‘(D)(iv)’’ and inserting ‘‘(D)(ix)’’; and 
(iii) by striking ‘‘June 30, 2017’’ and inserting 
‘‘June 30, 2023’’. 
SEC. 4019. NUTRITION EDUCATION. 
Section 28(c) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2036a(c)) is amended— 
(1) in paragraph (2)— 
(A) in subparagraph (B)— 
(i) in the matter preceding clause (i), by striking 
‘‘Except as provided in subparagraph (C), a’’ and 
inserting ‘‘A’’, 
(ii) in clause (ii) by striking ‘‘and’’ after the semi-
colon, 
(iii) by redesignating clause (iii) as clause (iv), 
and 
(iv) by inserting after clause (ii) the following: 
‘‘(iii) describe how the State agency shall use an 
electronic reporting system to— 
‘‘(I) measure and evaluate the projects; and 
‘‘(II) account for the allowable State agency 
administrative costs including for— 
‘‘(aa) salaries and benefits of State agency 
personnel; 
‘‘(bb) office supplies and equipment; 
‘‘(cc) travel costs; 
‘‘(dd) development and production of nutri-
tion education materials; 
‘‘(ee) memberships, subscriptions, and 
professional activities;
H. R. 2—162 
‘‘(ff) lease or rental costs; 
‘‘(gg) maintenance and repair expenses; 
‘‘(hh) indirect costs; and 
‘‘(ii) cost of using publicly-owned building 
space; and’’, and 
(B) by striking subparagraph (C), 
(2) in paragraph (3)(B) in the matter preceding clause 
(i), by inserting ‘‘, the Director of the National Institute of 
Food and Agriculture,’’ before ‘‘and outside stakeholders’’, 
(3) in paragraph (5) by inserting ‘‘the expanded food and 
nutrition education program or’’ before ‘‘other health pro-
motion’’, and 
(4) by adding at the end the following: 
‘‘(6) INFORMATION
CLEARINGHOUSE.—The Secretary shall 
establish an online clearinghouse that makes available to State 
agencies, local agencies, institutions of higher education, and 
community organizations best practices for planning, imple-
menting, and evaluating nutrition education and obesity 
prevention services to ensure that projects carried out with 
funds received under this section are appropriate for the target 
population. 
‘‘(7) TECHNICAL ASSISTANCE.—The Secretary shall provide 
technical assistance to a State agency in developing and imple-
menting a nutrition education State plan, including— 
‘‘(A) by identifying common challenges faced by entities 
described in paragraph (6) that participate in projects car-
ried out with funds received under this section; 
‘‘(B) by coordinating efforts to address those common 
challenges; 
‘‘(C) by collecting and disseminating information on 
evidence-based practices relating to nutrition education and 
obesity prevention; 
‘‘(D) by facilitating communication between and among 
grantees and subgrantees of funds received under this sec-
tion; 
‘‘(E) by assisting State agencies in creating or 
maintaining systems to compile program data; and 
‘‘(F) by performing or assisting with other activities, 
as determined by the Secretary. 
‘‘(8) ANNUAL
STATE
REPORT.—Each State agency that 
delivers nutrition education and obesity prevention services 
under this subsection shall submit to the Secretary an annual 
report, which shall be made publicly available by the Secretary, 
that includes— 
‘‘(A) the use of funds on the State agency’s program, 
including for each category of allowable State agency 
administrative costs identified in paragraph (2)(B)(iii)(II); 
‘‘(B) a description of each project carried out by that 
agency under this subsection, including, with respect to 
the project, the target population, interventions, edu-
cational materials used, key performance indicators used, 
and evaluations made; 
‘‘(C) a comprehensive analysis of the impacts and out-
comes— 
‘‘(i) of the project, including with respect to the 
elements described in subparagraph (A); and
H. R. 2—163 
‘‘(ii) to the extent practicable, of completed 
multiyear projects; and 
‘‘(D) the status of any ongoing multiyear project. 
‘‘(9) ANNUAL FEDERAL REPORT.—The Administrator of the 
Food and Nutrition Service, in consultation with the Director 
of the National Institute of Food and Agriculture, shall annually 
submit to the Committee on Agriculture of the House of Rep-
resentatives and the Committee on Agriculture, Nutrition, and 
Forestry of the Senate a report that— 
‘‘(A) evaluates the level of coordination between— 
‘‘(i) the nutrition education and obesity prevention 
grant program under this section; 
‘‘(ii) the expanded food and nutrition education 
program under section 1425 of the National Agricul-
tural Research, Extension, and Teaching Policy Act 
of 1977 (7 U.S.C. 3175); and 
‘‘(iii) any other nutrition education program 
administered by the Department of Agriculture; and 
‘‘(B) includes the use of funds on such programs 
including State agency administrative costs reported by 
States under paragraph (8)(A).’’. 
SEC. 4020. RETAIL FOOD STORE AND RECIPIENT TRAFFICKING. 
Section 29(c)(1) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2036b(c)(1)) is amended by striking ‘‘2018’’ and inserting ‘‘2023’’. 
SEC. 4021. PUBLIC-PRIVATE PARTNERSHIPS. 
The Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.) 
is amended by adding at the end the following: 
‘‘SEC. 30. PILOT PROJECTS TO ENCOURAGE THE USE OF PUBLIC-PRI-
VATE PARTNERSHIPS COMMITTED TO ADDRESSING FOOD 
INSECURITY. 
‘‘(a) IN GENERAL.—The Secretary may, on application of eligible 
entities, approve not more than 10 pilot projects to support public- 
private partnerships that address food insecurity and poverty. 
‘‘(b) DEFINITIONS.—For purposes of this section— 
‘‘(1) the term ‘eligible entity’ means— 
‘‘(A) a nonprofit organization; 
‘‘(B) a community-based organization; 
‘‘(C) an institution of higher education; or 
‘‘(D) a private entity, as determined by the Secretary; 
and 
‘‘(2) the term ‘public agency’ means a department, agency, 
other unit, or instrumentality of Federal, State, or local govern-
ment. 
‘‘(c) PROJECT REQUIREMENTS.—Projects approved under this sec-
tion shall— 
‘‘(1) be limited to 2 years in length; and 
‘‘(2) include a collaboration between one or more public 
agencies and one or more eligible entities that— 
‘‘(A) improves the effectiveness and impact of the 
supplemental nutrition assistance program; 
‘‘(B) develops food security solutions that are specific 
to the needs of a community or region; and 
‘‘(C) strengthens the capacity of communities to address 
food insecurity and poverty.
H. R. 2—164 
‘‘(d) EVALUATION.—The Secretary shall provide for an inde-
pendent evaluation of pilot projects approved under this section 
that includes— 
‘‘(1) a summary of the activities conducted under the pilot 
projects; 
‘‘(2) an assessment of the effectiveness of the pilot projects; 
and 
‘‘(3) best practices regarding the use of public-private part-
nerships to improve the effectiveness of public benefit programs 
to address food insecurity and poverty. 
‘‘(e) FUNDING.— 
‘‘(1) AUTHORIZATION OF APPROPRIATIONS.—There is author-
ized to be appropriated to carry out this section $5,000,000 
to remain available until expended. 
‘‘(2) APPROPRIATION IN ADVANCE.—Only funds appropriated 
under paragraph (1) in advance specifically to carry out this 
section shall be available to carry out this section.’’. 
SEC. 4022. TECHNICAL CORRECTIONS. 
The Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.) 
is amended— 
(1) in section 3— 
(A) in subsections (d) and (i) by striking ‘‘7(i)’’ and 
inserting ‘‘7(h)’’, and 
(B) in subsection (o)(1)(A) by striking ‘‘(r)(1)’’ and 
inserting ‘‘(q)(1)’’, 
(2) in section 5(a) by striking ‘‘and section’’ each place 
it appears and all that follows through ‘‘households’’ the respec-
tive next place it appears, and inserting ‘‘and section 3(m)(4), 
households’’, 
(3) in subsections (e)(1) and (f)(1)(A)(i) of section 8 by 
striking ‘‘3(n)(5)’’ and inserting ‘‘3(m)(5)’’, 
(4) in the 1st sentence of section 10— 
(A) by striking ‘‘or the Federal Savings and Loan Insur-
ance Corporation’’ each place it appears, and 
(B) by striking ‘‘3(p)(4)’’ and inserting ‘‘3(o)(4)’’, 
(5) in section 11— 
(A) in subsection (a)(2) by striking ‘‘3(t)(1)’’ and 
inserting ‘‘3(s)(1)’’, and 
(B) in subsection (d)— 
(i) by striking ‘‘3(t)(1)’’ each place it appears and 
inserting ‘‘3(s)(1)’’, and 
(ii) by striking ‘‘3(t)(2)’’ each place it appears and 
inserting ‘‘3(s)(2)’’, and 
(C) in subsection (e)— 
(i) in paragraph (17) by striking ‘‘3(t)(1)’’ inserting 
‘‘3(s)(1)’’, and 
(ii) in paragraph (23) by striking ‘‘Simplified 
Supplemental Nutrition Assistance Program’’ and 
inserting ‘‘simplified supplemental nutrition assistance 
program’’, 
(6) in section 15(e) by striking ‘‘exchange’’ and all that 
follows through ‘‘anything’’, and inserting ‘‘exchange for bene-
fits, or anything’’, 
(7) in section 17(b)(1)(B)(iv)(III)(aa) by striking ‘‘3(n)’’ and 
inserting ‘‘3(m)’’,
H. R. 2—165 
(8) in section 25(a)(1)(B)(i)(I) by striking the 2d semicolon 
at the end, and 
(9) in section 26(b) by striking ‘‘out’’ and all that follows 
through ‘‘(referred’’, and inserting ‘‘out a simplified supple-
mental nutrition assistance program (referred’’. 
Subtitle B—Commodity Distribution 
Programs 
SEC. 4101. COMMODITY DISTRIBUTION PROGRAM. 
The 1st sentence of section 4(a) of the Agriculture and Con-
sumer Protection Act of 1973 (7 U.S.C. 612c note) is amended 
by striking ‘‘2018’’ and inserting ‘‘2023’’. 
SEC. 4102. COMMODITY SUPPLEMENTAL FOOD PROGRAM. 
Section 5 of the Agriculture and Consumer Protection Act of 
1973 (7 U.S.C. 612c note; Public Law 93–86) is amended— 
(1) in subsection (a)— 
(A) in paragraph (1) by striking ‘‘2018’’ and inserting 
‘‘2023’’, and 
(B) in paragraph (2)(B), in the matter preceding clause 
(i), by striking ‘‘2018’’ and inserting ‘‘2023’’, 
(2) in subsection (d)(2), in the 1st sentence, by striking 
‘‘2018’’ and inserting ‘‘2023’’, and 
(3) in subsection (g)— 
(A) by striking ‘‘Except’’ and inserting the following: 
‘‘(1) IN GENERAL.—Except’’, and 
(B) by adding at the end the following: 
‘‘(2) CERTIFICATION.— 
‘‘(A) DEFINITION
OF
CERTIFICATION
PERIOD.—In this 
paragraph, the term ‘certification period’ means the period 
during which a participant in the commodity supplemental 
food program in a State may continue to receive benefits 
under the commodity supplemental food program without 
a formal review of the eligibility of the participant. 
‘‘(B) MINIMUM CERTIFICATION PERIOD.—Subject to sub-
paragraphs (C) and (D), a State shall establish for the 
commodity supplemental food program of the State a certifi-
cation period of— 
‘‘(i) not less than 1 year; but 
‘‘(ii) not more than 3 years. 
‘‘(C) TEMPORARY CERTIFICATION.—An eligible applicant 
for the commodity supplemental food program in a State 
may be provided with a temporary monthly certification 
to fill any caseload slot resulting from nonparticipation 
by certified participants. 
‘‘(D) APPROVALS.—A certification period of more than 
1 year established by a State under subparagraph (B) 
shall be subject to the approval of the Secretary, who 
shall approve such a certification period on the condition 
that, with respect to each participant receiving benefits 
under the commodity supplemental food program of the 
State, the local agency in the State administering the com-
modity supplemental food program, on an annual basis 
during the certification period applicable to the partici-
pant—
H. R. 2—166 
‘‘(i) verifies the address and continued interest of 
the participant; and 
‘‘(ii) has sufficient reason to determine that the 
participant still meets the income eligibility standards 
under paragraph (1), which may include a determina-
tion that the participant has a fixed income.’’. 
SEC. 4103. DISTRIBUTION OF SURPLUS COMMODITIES TO SPECIAL 
NUTRITION PROJECTS. 
Section 1114(a)(2)(A) of the Agriculture and Food Act of 1981 
(7 U.S.C. 1431e(a)(2)(A)) is amended by striking ‘‘2018’’ and 
inserting ‘‘2023’’. 
SEC. 4104. FOOD DONATION STANDARDS. 
Section 203D of the Emergency Food Assistance Act of 1983 
(7 U.S.C. 7507), as amended by section 4018(c), is amended by 
adding at the end the following: 
‘‘(f) FOOD DONATION STANDARDS.— 
‘‘(1) DEFINITIONS.—In this subsection: 
‘‘(A) APPARENTLY WHOLESOME FOOD.—The term ‘appar-
ently wholesome food’ has the meaning given the term 
in section 22(b) of the Child Nutrition Act of 1966 (42 
U.S.C. 1791(b)). 
‘‘(B) INSTITUTION
OF
HIGHER
EDUCATION.—The term 
‘institution of higher education’ has the meaning given 
the term in section 102 of the Higher Education Act of 
1965 (20 U.S.C. 1002). 
‘‘(C) QUALIFIED
DIRECT
DONOR.—The term ‘qualified 
direct donor’ means a retail food store, wholesaler, agricul-
tural producer, restaurant, caterer, school food authority, 
or institution of higher education. 
‘‘(2) GUIDANCE.— 
‘‘(A) IN GENERAL.—Not later than 180 days after the 
date of enactment of the Agriculture Improvement Act 
of 2018, the Secretary shall issue guidance to promote 
awareness of donations of apparently wholesome food pro-
tected under section 22(c) of the Child Nutrition Act of 
1966 (42 U.S.C. 1791(c)) by qualified direct donors in 
compliance with applicable State and local health, food 
safety, and food handling laws (including regulations). 
‘‘(B) ISSUANCE.—The Secretary shall encourage State 
agencies and emergency feeding organizations to share the 
guidance issued under subparagraph (A) with qualified 
direct donors.’’. 
Subtitle C—Miscellaneous 
SEC. 4201. SENIORS FARMERS’ MARKET NUTRITION PROGRAM. 
Section 4402(a) of the Farm Security and Rural Investment 
Act of 2002 (7 U.S.C. 3007(a)) is amended by striking ‘‘2018’’ and 
inserting ‘‘2023’’. 
SEC. 4202. PURCHASE OF FRESH FRUITS AND VEGETABLES FOR DIS-
TRIBUTION TO SCHOOLS AND SERVICE INSTITUTIONS. 
Section 10603(b) of the Farm Security and Rural Investment 
Act of 2002 (7 U.S.C. 612c-4(b)) is amended by striking ‘‘2018’’ 
and inserting ‘‘2023’’.
H. R. 2—167 
SEC. 4203. SERVICE OF TRADITIONAL FOODS IN PUBLIC FACILITIES. 
Section 4033(d)(1) of the Agricultural Act of 2014 (128 Stat. 
818) is amended— 
(1) by striking ‘‘and’’ the 1st place it appears, 
(2) by inserting ‘‘, a State, a county or county equivalent, 
a local educational agency, and an entity or person authorized 
to facilitate the donation, storage, preparation, or serving of 
traditional food by the operator of a food service program’’ 
after ‘‘organization’’, and 
(3) by inserting ‘‘storage, preparation, or’’ after ‘‘donation 
to or’’. 
SEC. 4204. HEALTHY FOOD FINANCING INITIATIVE. 
Section 243 of the Department of Agriculture Reorganization 
Act of 1994 (7 U.S.C. 6953) is amended— 
(1) in subsection (a), by inserting ‘‘and enterprises’’ after 
‘‘retailers’’; 
(2) in subsection (b)(3)(B)(iii), by inserting ‘‘and enterprises’’ 
after ‘‘retailers’’; and 
(3) in subsection (c)(2)(B)(ii), by inserting ‘‘as applicable,’’ 
before ‘‘to accept’’. 
SEC. 4205. THE GUS SCHUMACHER NUTRITION INCENTIVE PROGRAM. 
(a) AMENDMENT TO PROGRAM.—Section 4405 of the Food, Con-
servation, and Energy Act of 2008 (7 U.S.C. 7517) is amended— 
(1) by striking the heading and inserting ‘‘THE
GUS 
SCHUMACHER NUTRITION INCENTIVE PROGRAM’’, 
(2) in subsection (a)— 
(A) by amending paragraph (1) to read as follows: 
‘‘(1) ELIGIBLE ENTITY.—The term ‘eligible entity’ means a 
governmental agency or nonprofit organization.’’, 
(B) in paragraph (3) by striking ‘‘means the’’ and all 
that follows through the period at the end, and inserting 
the following: 
‘‘means— 
‘‘(A) the supplemental nutrition assistance program 
established under the Food and Nutrition Act of 2008 (7 
U.S.C. 2011 et seq.); and 
‘‘(B) the programs for nutrition assistance under sec-
tion 19 of such Act (7 U.S.C. 2028).’’, and 
(C) by adding at the end the following: 
‘‘(4) HEALTHCARE PARTNER.—The term ‘healthcare partner’ 
means a healthcare provider, including— 
‘‘(A) a hospital; 
‘‘(B) a Federally-qualified health center (as defined in 
section 1905(l) of the Social Security Act (42 U.S.C. 
1396d(l))); 
‘‘(C) a hospital or clinic operated by the Secretary 
of Veterans Affairs; or 
‘‘(D) a healthcare provider group. 
‘‘(5) MEMBER.—The term ‘member’ means, as determined 
by the applicable eligible entity or healthcare partner carrying 
out a project under subsection (c) in accordance with procedures 
established by the Secretary— 
‘‘(A) an individual eligible for— 
‘‘(i) benefits under the Food and Nutrition Act 
of 2008 (7 U.S.C. 2011 et seq.); or
H. R. 2—168 
‘‘(ii) medical assistance under a State plan or a 
waiver of such a plan under title XIX of the Social 
Security Act (42 U.S.C. 1396 et seq.) and enrolled 
under such plan or waiver; and 
‘‘(B) a member of a low-income household that suffers 
from, or is at risk of developing, a diet-related health 
condition.’’, 
(3) in subsection (b)— 
(A) in paragraph (1)— 
(i) in subparagraph (B) by striking ‘‘The’’ and 
inserting ‘‘Except as provided in subparagraph (D)(iii), 
the’’, 
(ii) in subparagraph (C) by adding at the end the 
following: 
‘‘(iii) TRIBAL AGENCIES.—The Secretary may allow 
a Tribal agency to use funds provided to the Indian 
Tribe of the Tribal agency through a Federal agency 
(including the Indian Health Service) or other Federal 
benefit to satisfy all or part of the non-Federal share 
described in clause (i) if such use is otherwise con-
sistent with the purpose of such funds.’’, 
(iii) by redesignating subparagraphs (B) and (C) 
as subparagraphs (C) and (D), and 
(iv) by inserting after subparagraph (A) the fol-
lowing: 
‘‘(B) PARTNERS
AND
COLLABORATORS.—An eligible 
entity that receives a grant under this subsection may 
partner with, or make subgrants to, public, private, non-
profit, or for-profit entities, including— 
‘‘(i) an emergency feeding organization; 
‘‘(ii) an agricultural cooperative; 
‘‘(iii) a producer network or association; 
‘‘(iv) a community health organization; 
‘‘(v) a public benefit corporation; 
‘‘(vi) an economic development corporation; 
‘‘(vii) a farmers’ market; 
‘‘(viii) a community-supported agriculture program; 
‘‘(ix) a buying club; 
‘‘(x) a retail food store participating in the supple-
mental nutrition assistance program; 
‘‘(xi) a State, local, or tribal agency; 
‘‘(xii) another eligible entity that receives a grant 
under this subsection; and 
‘‘(xiii) any other entity the Secretary designates.’’, 
(B) in paragraph (2)— 
(i) by amending subparagraph (A) to read as fol-
lows: 
‘‘(A) IN GENERAL.—To receive a grant under this sub-
section, an eligible entity shall— 
‘‘(i) meet the application criteria set forth by the 
Secretary; and 
‘‘(ii) propose a project that, at a minimum— 
‘‘(I) has the support of the State agency admin-
istering the supplemental nutrition assistance pro-
gram; 
‘‘(II) would increase the purchase of fruits and 
vegetables by low-income households participating
H. R. 2—169 
in the supplemental nutrition assistance program 
by providing an incentive for the purchase of fruits 
and vegetables at the point of purchase to a house-
hold purchasing food with supplemental nutrition 
assistance program benefits; 
‘‘(III) except in the case of projects receiving 
$100,000 or less over 1 year, would measure the 
purchase of fruits and vegetables by low-income 
households participating in the supplemental 
nutrition assistance program; 
‘‘(IV) ensures that the same terms and condi-
tions apply to purchases made by individuals with 
benefits issued under the Food and Nutrition Act 
of 2008 and incentives provided for in this sub-
section as apply to purchases made by individuals 
who are not members of households receiving bene-
fits, such as provided for in section 278.2(b) of 
title 7, Code of Federal Regulations (or a successor 
regulation); 
‘‘(V) has adequate plans to collect data for 
reporting and agrees to provide that information 
for the report described in subsection (e)(2)(B)(iii); 
and 
‘‘(VI) would share information with the Nutri-
tion Incentive Program Training, Technical Assist-
ance, Evaluation, and Information Centers estab-
lished under subsection (e).’’, 
(ii) in subparagraph (B)— 
(I) by striking clause (v), 
(II) by redesignating clause (vi) as clause (x), 
and 
(III) by inserting after clause (iv) the following: 
‘‘(v) include a project design— 
‘‘(I) that provides incentives when fruits or 
vegetables are purchased using supplemental 
nutrition assistance program benefits; and 
‘‘(II) in which the incentives earned may be 
used only to purchase fruits or vegetables; 
‘‘(vi) have demonstrated the ability to provide serv-
ices to underserved communities; 
‘‘(vii) include coordination with multiple stake-
holders, such as farm organizations, nutrition edu-
cation programs, cooperative extension services, public 
health departments, health providers, private and 
public health insurance agencies, cooperative grocers, 
grocery associations, and community-based and non-
governmental organizations; 
‘‘(viii) offer supplemental services in high-need 
communities, including online ordering, transportation 
between home and store, and delivery services; 
‘‘(ix) include food retailers that are open— 
‘‘(I) for extended hours; and 
‘‘(II) most or all days of the year; or’’, and 
(C) by striking paragraphs (3) and (4), 
(4) in subsection (c)— 
(A) in paragraph (1) by striking ‘‘subsection (b) 
$5,000,000 for each of fiscal years 2014 through 2018’’
H. R. 2—170 
and inserting ‘‘this section $5,000,000 for each of fiscal 
years 2014 through 2023’’, and 
(B) in paragraph (2)— 
(i) in the matter preceding subparagraph (A), by 
striking ‘‘subsection (b)’’ and inserting ‘‘this section’’, 
(ii) in subparagraph (B) by striking ‘‘and’’ at the 
end, 
(iii) in subparagraph (C) by striking the period 
at the end and inserting a semicolon, and 
(iv) by adding at the end the following: 
‘‘(C) $45,000,000 for fiscal year 2019; 
‘‘(D) $48,000,000 for fiscal year 2020; 
‘‘(E) $48,000,000 for fiscal year 2021; 
‘‘(F) $53,000,000 for fiscal year 2022; and 
‘‘(G) $56,000,000 for fiscal year 2023 and each fiscal 
year thereafter. 
‘‘(3) USE OF FUNDS.—With respect to funds made available 
under this section for fiscal years 2019 through 2023— 
‘‘(A) for each fiscal year the Secretary shall use not 
more than 10 percent of such funds available for such 
fiscal year for the produce prescription program described 
in subsection (c); 
‘‘(B) for each fiscal year not more than 8 percent of 
such funds available for such fiscal year shall be used 
by the National Institute of Food and Agriculture and 
the Food and Nutrition Service for administration; and 
‘‘(C) the Secretary shall use for the Nutrition Incentive 
Program Training, Technical Assistance, Evaluation, and 
Information Centers established under subsection (e) not 
more than— 
‘‘(i) $17,000,000 in the aggregate for fiscal years 
2019 and 2020; and 
‘‘(ii) $7,000,000 for each of the fiscal years 2021 
through 2023.’’, 
(5) by redesignating subsection (c) as subsection (f), and 
(6) by inserting after subsection (b) the following: 
‘‘(c) PRODUCE PRESCRIPTION PROGRAM.— 
‘‘(1) IN GENERAL.—The Secretary shall establish a grant 
program under which the Secretary shall award grants to 
eligible entities to conduct projects that demonstrate and 
evaluate the impact of the projects on— 
‘‘(A) the improvement of dietary health through 
increased consumption of fruits and vegetables; 
‘‘(B) the reduction of individual and household food 
insecurity; and 
‘‘(C) the reduction in healthcare use and associated 
costs. 
‘‘(2) HEALTHCARE
PARTNERS.—In carrying out a project 
using a grant received under paragraph (1), an eligible entity 
shall partner with 1 or more healthcare partners. 
‘‘(3) GRANT APPLICATIONS.— 
‘‘(A) IN GENERAL.—To be eligible to receive a grant 
under paragraph (1), an eligible entity— 
‘‘(i) shall— 
‘‘(I) prescribe fresh fruits and vegetables to 
members;
H. R. 2—171 
‘‘(II) submit to the Secretary an application 
containing such information as the Secretary may 
require, including the information described in 
subparagraph (B); and 
‘‘(ii) may— 
‘‘(I) provide financial or non-financial incen-
tives for members to purchase or procure fresh 
fruits and vegetables; 
‘‘(II) provide educational resources on nutrition 
to members; and 
‘‘(III) establish additional accessible locations 
for members to procure fresh fruits and vegetables. 
‘‘(B) APPLICATION.—An application shall— 
‘‘(i) identify the 1 or more healthcare partners 
with which the eligible entity is partnering under para-
graph (2); and 
‘‘(ii) include— 
‘‘(I) a description of the methods by which 
an eligible entity shall— 
‘‘(aa) screen and verify eligibility for mem-
bers for participation in a produce prescription 
project, in accordance with procedures estab-
lished under subsection (a)(5); 
‘‘(bb) implement an effective produce 
prescription project, including the role of each 
healthcare 
partner 
in 
implementing 
the 
produce prescription project; 
‘‘(cc) evaluate members participating in a 
produce prescription project with respect to 
the matters described in subparagraphs (A) 
through (C) of paragraph (1); 
‘‘(dd) provide educational opportunities 
relating to nutrition to members participating 
in a produce prescription project; and 
‘‘(ee) inform members of the availability 
of the produce prescription project, including 
locations at which produce prescriptions may 
be redeemed; 
‘‘(II) a description of any additional nonprofit 
or emergency feeding organizations that shall be 
involved in the project and the role of each addi-
tional nonprofit or emergency feeding organization 
in implementing and evaluating an effective 
produce prescription project; 
‘‘(III) documentation of a partnership agree-
ment with a relevant State Medicaid agency or 
other appropriate entity, as determined by the Sec-
retary, to evaluate the effectiveness of the produce 
prescription project in reducing healthcare use and 
associated costs; 
‘‘(IV) adequate plans to collect data for 
reporting and agreement to provide that informa-
tion for the report described in subsection 
(e)(2)(B)(iii); and 
‘‘(V) agreement to share information with the 
Nutrition Incentive Program Training, Technical
H. R. 2—172 
Assistance, Evaluation, and Information Centers 
established under subsection (e). 
‘‘(4) COORDINATION.—In carrying out the grant program 
established under paragraph (1), the Secretary shall coordinate 
with the Secretary of Health and Human Services and the 
heads of other appropriate Federal agencies that carry out 
activities relating to healthcare partners. 
‘‘(5) PARTNERSHIPS.— 
‘‘(A) IN GENERAL.—In carrying out the grant program 
under paragraph (1), the Secretary may enter into 1 or 
more memoranda of understanding with a Federal agency, 
a State, or a private entity to ensure the effective 
implementation and evaluation of each project. 
‘‘(B) MEMORANDUM
OF
UNDERSTANDING.—A memo-
randum of understanding entered into under subparagraph 
(A) shall include— 
‘‘(i) a description of a plan to provide educational 
opportunities relating to nutrition to members partici-
pating in produce prescription projects; 
‘‘(ii) a description of the role of the Federal agency, 
State, or private entity, as applicable, in implementing 
and evaluating an effective produce prescription 
project; and 
‘‘(iii) documentation of a partnership agreement 
with a relevant State Medicaid agency or other appro-
priate entity, as determined by the Secretary. 
‘‘(d) APPLICABILITY.— 
‘‘(1) IN GENERAL.—The value of any benefit provided to 
a participant in any activity funded under subsections (b) or 
(c) shall be treated as supplemental nutrition benefits under 
section 8(b) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2017(b)). 
‘‘(2) PROHIBITION ON COLLECTION OF SALES TAXES.—Each 
State shall ensure that no State or local tax is collected on 
a purchase of food with assistance provided under subsections 
(b) and (c). 
‘‘(3) NO LIMITATION ON BENEFITS.—Grants made available 
under subsections (b) and (c) shall not be used to carry out 
any project that limits the use of benefits under the Food 
and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.) or any other 
Federal nutrition law. 
‘‘(4) HOUSEHOLD ALLOTMENT.—Assistance provided under 
subsections (b) and (c) to households receiving benefits under 
the supplemental nutrition assistance program shall not— 
‘‘(A) be considered part of the supplemental nutrition 
assistance program benefits of the household; or 
‘‘(B) be used in the collection or disposition of claims 
under section 13 of the Food and Nutrition Act of 2008 
(7 U.S.C. 2022). 
‘‘(e) NUTRITION
INCENTIVE
PROGRAM
TRAINING, TECHNICAL 
ASSISTANCE, EVALUATION, AND INFORMATION CENTERS.— 
‘‘(1) IN GENERAL.—The Secretary shall— 
‘‘(A) establish 1 or more Nutrition Incentive Program 
Training, Technical Assistance, Evaluation, and Informa-
tion Centers, in consultation with the Director of the 
National Institute of Food and Agriculture; and
H. R. 2—173 
‘‘(B) to the extent practicable, consult on the design 
and scope of such Centers with grocers, farmers, health 
professionals, researchers, incentive program managers, 
and employees of the Department of Agriculture with direct 
experience with implementation of existing incentive pro-
grams or projects. 
‘‘(2) ESTABLISHMENT.—The Centers shall be capable of pro-
viding services related to grants under subsections (b) and 
(c), including— 
‘‘(A) offering incentive program training and technical 
assistance to applicants and grantees to the extent prac-
ticable, including— 
‘‘(i) collecting and providing information on best 
practices that may include communications, signage, 
record-keeping, incentive instruments, development 
and integration of point of sale systems, and reporting; 
‘‘(ii) disseminating information and assisting with 
collaboration among grantee projects, applicable State 
agencies, and nutrition education programs; 
‘‘(iii) facilitating communication between grantees 
and the Department of Agriculture and applicable 
State agencies; and 
‘‘(iv) providing support for the development of best 
practices for produce prescription projects and the 
sharing of information among eligible entities and 
healthcare providers that participate in a produce 
prescription project under subsection (c); and 
‘‘(v) other services identified by the Secretary; and 
‘‘(B) creating a system to collect and compile core data 
sets from eligible entities that— 
‘‘(i) uses standard metrics with consideration of 
outcome measures for existing projects; 
‘‘(ii) includes to the extent practicable grocers, 
farmers, health professionals, researchers, incentive 
program managers, and employees of the Department 
of Agriculture with direct experience with implementa-
tion of existing incentive programs in the design of 
the instrument through which data will be collected 
and the mechanism for reporting; 
‘‘(iii) compiles project data from grantees, and 
beginning in fiscal year 2020 generates an annual 
report to Congress on grant outcomes, including— 
‘‘(I) the results of the project; and 
‘‘(II) the amount of grant funds used for the 
project; and 
‘‘(iv) creates and maintains a publicly accessible 
online site that makes annual reports and incentive 
program information available in an anonymized for-
mat that protects confidential, personal, or other sen-
sitive data. 
‘‘(3) COOPERATIVE AGREEMENT.— 
‘‘(A) IN
GENERAL.—To carry out paragraph (1), the 
Secretary may, on a competitive basis, enter into 1 or 
more cooperative agreements with 1 or more organizations 
with expertise in developing outcome-based reporting, at
H. R. 2—174 
least 1 of which has expertise in the food insecurity nutri-
tion incentive program and at least 1 of which has expertise 
in produce prescription projects. 
‘‘(B) INCLUSION.—The organizations referred to in 
subparagraph (A) may include— 
‘‘(i) nongovernmental organizations; 
‘‘(ii) State cooperative extension services; 
‘‘(iii) regional food system centers; 
‘‘(iv) Federal, State, or Tribal agencies; 
‘‘(v) institutions of higher education (as defined 
in section 101(a) of the Higher Education Act of 1965 
(20 U.S.C. 1001(a))); or 
‘‘(vi) other appropriate entities as determined by 
the Secretary.’’. 
(b) CONFORMING AMENDMENT.—The table of contents of the 
Food, Conservation, and Energy Act of 2008 (Public Law 113– 
188) is amended by striking the item relating to section 4405 
and inserting the following: 
‘‘Sec. 4405. The Gus Schumacher nutrition incentive program.’’. 
SEC. 4206. MICRO-GRANTS FOR FOOD SECURITY. 
(a) PURPOSE.—The purpose of this section is to increase the 
quantity and quality of locally grown food through small-scale gar-
dening, herding, and livestock operations in food insecure commu-
nities in areas of the United States that have significant levels 
of food insecurity and import a significant quantity of food. 
(b) DEFINITIONS.—In this section: 
(1) ELIGIBLE ENTITY.—The term ‘‘eligible entity’’ means an 
entity that— 
(A) is— 
(i) an individual; 
(ii) an Indian tribe or tribal organization, as 
defined in section 4 of the Indian Self-Determination 
and Education Assistance Act (25 U.S.C. 5304); 
(iii) a nonprofit organization engaged in increasing 
food security, as determined by the Secretary, 
including— 
(I) a religious organization; 
(II) a food bank; or 
(III) a food pantry; 
(iv) 
a 
federally 
funded 
educational 
facility, 
including— 
(I) a Head Start program or an Early Head 
Start program carried out under the Head Start 
Act (42 U.S.C. 9831 et seq.); 
(II) a public elementary school or public sec-
ondary school; 
(III) a public institution of higher education 
(as defined in section 101 of the Higher Education 
Act of 1965 (20 U.S.C. 1001)); 
(IV) a Tribal College or University (as defined 
in section 316(b) of the Higher Education Act of 
1965 (20 U.S.C. 1059c(b))); or 
(V) a job training program; or 
(v) a local or Tribal government that may not 
levy local taxes under State or Federal law; and 
(B) is located in an eligible State.
H. R. 2—175 
(2) ELIGIBLE STATE.—The term ‘‘eligible State’’ means— 
(A) the State of Alaska; 
(B) the State of Hawaii; 
(C) American Samoa; 
(D) the Commonwealth of the Northern Mariana 
Islands; 
(E) the Commonwealth of Puerto Rico; 
(F) the Federated States of Micronesia; 
(G) Guam; 
(H) the Republic of the Marshall Islands; 
(I) the Republic of Palau; and 
(J) the United States Virgin Islands. 
(c) ESTABLISHMENT.—The Secretary shall distribute funds to 
the agricultural department or agency of each eligible State for 
the competitive distribution of subgrants to eligible entities to 
increase the quantity and quality of locally grown food in food 
insecure communities, including through small-scale gardening, 
herding, and livestock operations. 
(d) DISTRIBUTION OF FUNDS.— 
(1) IN
GENERAL.—Of the amount made available under 
subsection (g), the Secretary shall distribute— 
(A) 40 percent to the State of Alaska; 
(B) 40 percent to the State of Hawaii; and 
(C) 2.5 percent to each eligible State described in any 
of subparagraphs (C) through (J) of subsection (b)(2). 
(2) CARRYOVER OF FUNDS.—Funds distributed under para-
graph (1) shall remain available until expended. 
(3) ADMINISTRATIVE FUNDS.—An eligible State that receives 
funds under paragraph (1) may use not more than 3 percent 
of those funds— 
(A) to administer the competition for providing sub-
grants to eligible entities in that eligible State; 
(B) to provide oversight of the subgrant recipients in 
that eligible State; and 
(C) to collect data and submit a report to the Secretary 
under subsection (f)(2). 
(e) SUBGRANTS TO ELIGIBLE ENTITIES.— 
(1) AMOUNT OF SUBGRANTS.— 
(A) IN
GENERAL.—The amount of a subgrant to an 
eligible entity under this section shall be— 
(i) in the case of an eligible entity that is an 
individual, not greater than $5,000 per year; and 
(ii) in the case of an eligible entity described in 
any of clauses (ii) through (v) of subsection (b)(1)(A), 
not greater than $10,000 per year. 
(B) MATCHING
REQUIREMENT.—As a condition of 
receiving a subgrant under this section, an eligible entity 
shall provide funds equal to 10 percent of the amount 
received by the eligible entity under the subgrant, to be 
derived from non-Federal sources. A State may waive the 
matching requirement for an individual who otherwise 
meets the requirements to receive a subgrant by the eligible 
State. 
(C) PROJECT PERIOD.—Funds received by an eligible 
entity that is awarded a subgrant under this section shall 
remain available for expenditure not later than 3 years 
after the date the funds are received.
H. R. 2—176 
(2) PRIORITY.—In carrying out the competitive distribution 
of subgrants under subsection (c), an eligible State may give 
priority to an eligible entity that— 
(A) has not previously received a subgrant under this 
section; or 
(B) is located in a community or region in that eligible 
State with the highest degree of food insecurity, as deter-
mined by the agricultural department or agency of the 
eligible State. 
(3) PROJECTS.—An eligible State may provide subgrants 
to 2 or more eligible entities to carry out the same project. 
(4) USE OF SUBGRANT FUNDS BY ELIGIBLE ENTITIES.—An 
eligible entity that receives a subgrant under this section shall 
use the funds to engage in activities that will increase the 
quantity and quality of locally grown food for food insecure 
individuals, 
families, 
neighborhoods, 
and 
communities, 
including by— 
(A) purchasing gardening tools or equipment, soil, soil 
amendments, seeds, plants, animals, canning equipment, 
refrigeration, or other items necessary to grow and store 
food; 
(B) purchasing or building composting units; 
(C) purchasing or building towers designed to grow 
leafy green vegetables; 
(D) expanding an area under cultivation or engaging 
in other activities necessary to be eligible to receive funding 
under the environmental quality incentives program estab-
lished under chapter 4 of subtitle D of title XII of the 
Food Security Act of 1985 (16 U.S.C. 3839aa et seq.) for 
a high tunnel; 
(E) engaging in an activity that extends the growing 
season; 
(F) starting or expanding hydroponic and aeroponic 
farming of any scale; 
(G) building, buying, erecting, or repairing fencing for 
livestock, poultry, or reindeer; 
(H) purchasing and equipping a slaughter and proc-
essing facility approved by the Secretary; 
(I) traveling to participate in agricultural education 
provided by— 
(i) a State cooperative extension service; 
(ii) a land-grant college or university (as defined 
in section 1404 of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
3103)); 
(iii) a Tribal College or University (as defined in 
section 316(b) of the Higher Education Act of 1965 
(20 U.S.C. 1059c(b))); 
(iv) an Alaska Native-serving institution or a 
Native Hawaiian-serving institution (as such terms are 
defined in section 317(b) of the Higher Education Act 
of 1965 (20 U.S.C. 1059d(b))); or 
(v) a Federal or State agency; 
(J) paying for shipping of purchased items relating 
to growing or raising food for local consumption or pur-
chase; 
(K) creating or expanding avenues for—
H. R. 2—177 
(i) the sale of food commodities, specialty crops, 
and meats that are grown by the eligible entity for 
sale in the local community; or 
(ii) increasing the availability of fresh, locally 
grown, and nutritious food; and 
(L) engaging in other activities relating to increasing 
food security (including subsistence), as determined by the 
Secretary. 
(5) ELIGIBILITY
FOR
OTHER
FINANCIAL
ASSISTANCE.—An 
eligible entity shall not be ineligible to receive financial assist-
ance under another program administered by the Secretary 
as a result of receiving a subgrant under this section. 
(f) REPORTING REQUIREMENT.— 
(1) SUBGRANT RECIPIENTS.—As a condition of receiving a 
subgrant under this section, an eligible entity shall agree to 
submit to the eligible State in which the eligible entity is 
located a report— 
(A) not later than 60 days after the end of the project 
funded by the subgrant; and 
(B) that describes the use of the subgrants by eligible 
entities, the quantity of food grown through small-scale 
gardening, herding, and livestock operations, and the 
number of food insecure individuals fed as a result of 
the subgrant. 
(2) REPORT TO THE SECRETARY.—Not later than 120 days 
after the date on which an eligible State receives a report 
from each eligible entity in that State under paragraph (1), 
the eligible State shall submit to the Secretary a report that 
describes, in the aggregate, the information and data contained 
in the reports received from those eligible entities. 
(g) FUNDING.— 
(1) AUTHORIZATION OF APPROPRIATIONS.—There is author-
ized to be appropriated to the Secretary to carry out this 
section $10,000,000 for fiscal year 2019 and each fiscal year 
thereafter, to remain available until expended. 
(2) APPROPRIATIONS IN ADVANCE.—Only funds appropriated 
under paragraph (1) in advance specifically to carry out this 
section shall be available to carry out this section. 
SEC. 4207. BUY AMERICAN REQUIREMENTS. 
(a) ENFORCEMENT.—Not later than 180 days after the date 
of the enactment of this Act, the Secretary of Agriculture shall— 
(1) enforce full compliance with the requirements of section 
12(n) of the Richard B. Russell National School Lunch Act 
(42 U.S.C. 1760(n)) for purchases of agricultural commodities, 
including fish, meats, vegetables, and fruits, and the products 
thereof, and 
(2) ensure that States and school food authorities fully 
understand their responsibilities under such Act. 
(b) REQUIREMENT.—The products of the agricultural commod-
ities described in subsection (a)(1) shall be processed in the United 
States and substantially contain— 
(1) meats, vegetables, fruits, and other agricultural 
commodities produced in— 
(A) a State, 
(B) the District of Columbia, 
(C) the Commonwealth of Puerto Rico, or
H. R. 2—178 
(D) any territory or possession of the United States, 
or 
(2) fish harvested— 
(A) within the Exclusive Economic Zone of the United 
States, as described in Presidential Proclamation 5030 (48 
Fed. Reg. 10605; March 10, 1983), or 
(B) by a United States flagged vessel. 
(c) REPORT.—Not later than 180 days after the date of the 
enactment of this Act, the Secretary shall submit to Congress 
a report on the actions the Secretary has taken, and plans to 
take, to comply with this section. 
SEC. 4208. HEALTHY FLUID MILK INCENTIVES PROJECTS. 
(a) DEFINITION OF FLUID MILK.—In this section the term ‘‘fluid 
milk’’ means all varieties of pasteurized cow’s milk that— 
(1) is without flavoring or sweeteners, 
(2) is consistent with the most recent dietary recommenda-
tions, 
(3) is packaged in liquid form, and 
(4) contains vitamins A and D at levels consistent with 
the Food and Drug Administration, State, and local standards 
for fluid milk. 
(b) PROJECTS.—The Secretary of Agriculture shall carry out, 
under such terms and conditions as the Secretary considers to 
be appropriate, healthy fluid milk incentive projects to develop 
and test methods to increase the purchase and consumption of 
fluid milk by members of households that receive supplemental 
nutrition assistance program benefits by providing an incentive 
for the purchase of fluid milk at the point of purchase to members 
of households purchasing food with supplemental nutrition assist-
ance program benefits. 
(c) GRANTS OR COOPERATIVE AGREEMENTS.— 
(1) IN GENERAL.—To carry out this section, the Secretary, 
on a competitive basis, shall enter into cooperative agreements 
with, or provide grants to, governmental entities or nonprofit 
organizations for projects that meet the purpose and selection 
criteria specified in this subsection. 
(2) APPLICATION.—To be eligible to enter into a cooperative 
agreement or receive a grant under this subsection, a govern-
ment entity or nonprofit organization shall submit to the Sec-
retary an application containing such information as the Sec-
retary may require. 
(3) SELECTION CRITERIA.—Projects proposed in applications 
shall be evaluated against publicly disseminated criteria that 
shall incorporate a scientifically based strategy that is designed 
to improve diet quality and nutritional outcomes through the 
increased purchase of fluid milk by members of households 
that participate in the supplemental nutrition assistance pro-
gram. 
(4) USE OF FUNDS.—Funds made available to carry out 
this section shall not be used for any project that limits the 
use of benefits provided under the Food and Nutrition Act 
of 2008. 
(d) EVALUATION AND REPORTING.— 
(1) EVALUATION.— 
(A) INDEPENDENT EVALUATION.—
H. R. 2—179 
(i) IN GENERAL.—The Secretary shall provide for 
an independent evaluation of projects selected under 
this section that measures, to the maximum extent 
practicable, the impact on health and nutrition. 
(ii) REQUIREMENT.—The independent evaluation 
under this subparagraph shall use rigorous methodolo-
gies, particularly random assignment or other methods 
that are capable of producing scientifically valid 
information regarding which activities are effective. 
(B) COSTS.—The Secretary may use funds not to exceed 
7 percent of the funding provided to carry out this section 
to pay costs associated with evaluating the outcomes of 
the healthy fluid milk incentive projects. 
(2) REPORTING.—Not later than December 31 of 2020, and 
biennially thereafter, 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 a report that includes a description of— 
(A) the status of each healthy fluid milk incentives 
project, and 
(B) the results of any completed evaluation that— 
(i) include, to the maximum extent practicable, 
the impact of the healthy fluid milk incentive projects 
on health and nutrition outcomes among households 
participating in such projects, and 
(ii) have not been submitted in a previous report 
under this paragraph. 
(3) PUBLIC DISSEMINATION.—In addition to the reporting 
requirements under paragraph (2), evaluation results shall be 
shared publicly to promote wide use of successful strategies. 
(e) FUNDING.— 
(1) AUTHORIZATION OF APPROPRIATIONS.—There is author-
ized to be appropriated $20,000,000 to carry out and evaluate 
the outcomes of projects under this section, to remain available 
until expended. 
(2) APPROPRIATIONS IN ADVANCE.—Only funds appropriated 
under paragraph (1) in advance specifically to carry out this 
section shall be available to carry out this section. 
TITLE V—CREDIT 
Subtitle A—Farm Ownership Loans 
SEC. 5101. MODIFICATION OF THE 3-YEAR EXPERIENCE ELIGIBILITY 
REQUIREMENT FOR FARM OWNERSHIP LOANS. 
Section 302(b) of the Consolidated Farm and Rural Develop-
ment Act (7 U.S.C. 1922(b)) is amended by adding at the end 
the following: 
‘‘(4) WAIVER AUTHORITY.—In the case of a qualified begin-
ning farmer or rancher, the Secretary may— 
‘‘(A) reduce the 3-year requirement in paragraph (1) 
to 1 or 2 years, if the farmer or rancher has— 
‘‘(i) not less than 16 credit hours of post-secondary 
education in a field related to agriculture; 
‘‘(ii) successfully completed a farm management 
curriculum offered by a cooperative extension service,
H. R. 2—180 
a community college, an adult vocational agriculture 
program, a nonprofit organization, or a land-grant col-
lege or university; 
‘‘(iii) at least 1 year of experience as hired farm 
labor with substantial management responsibilities; 
‘‘(iv) successfully completed a farm mentorship, 
apprenticeship, 
or 
internship 
program 
with 
an 
emphasis on management requirements and day-to- 
day farm management decisions; 
‘‘(v) significant business management experience; 
‘‘(vi) been honorably discharged from the armed 
forces of the United States; 
‘‘(vii) successfully repaid a youth loan made under 
section 311(b); or 
‘‘(viii) an established relationship with an indi-
vidual who has experience in farming or ranching, 
or is a retired farmer or rancher, and is participating 
as a counselor in a Service Corps of Retired Executives 
program authorized under section 8(b)(1)(B) of the 
Small Business Act (15 U.S.C. 637(b)(1)(B)), or with 
a local farm or ranch operator or organization, 
approved by the Secretary, that is committed to men-
toring the farmer or rancher; or 
‘‘(B) waive the 3-year requirement in paragraph (1) 
if the farmer or rancher meets the requirements of clauses 
(iii) and (viii) of subparagraph (A).’’. 
SEC. 5102. CONSERVATION LOAN AND LOAN GUARANTEE PROGRAM. 
Section 304(h) of the Consolidated Farm and Rural Develop-
ment Act (7 U.S.C. 1924(h)) is amended by striking ‘‘2018’’ and 
inserting ‘‘2023’’. 
SEC. 5103. LIMITATIONS ON AMOUNT OF FARM OWNERSHIP LOANS. 
Section 305 of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1925) is amended— 
(1) in subsection (a)(2)— 
(A) by striking ‘‘$300,000’’ and inserting ‘‘$600,000’’; 
(B) by striking ‘‘$700,000’’ and inserting ‘‘$1,750,000’’; 
and 
(C) by striking ‘‘2000’’ and inserting ‘‘2019’’; and 
(2) in subsection (c)— 
(A) in paragraph (1), by striking ‘‘August’’ and inserting 
‘‘July’’; and 
(B) in paragraph (2), by striking ‘‘ending on August 
31, 1996’’ and inserting ‘‘that immediately precedes the 
12-month period described in paragraph (1)’’. 
SEC. 5104. RELENDING PROGRAM TO RESOLVE OWNERSHIP AND 
SUCCESSION ON FARMLAND. 
Subtitle A of title III of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1922 et seq.) is amended by adding 
at the end the following: 
‘‘SEC. 310I. RELENDING PROGRAM TO RESOLVE OWNERSHIP AND 
SUCCESSION ON FARMLAND. 
‘‘(a) IN GENERAL.—The Secretary may make loans to eligible 
entities described in subsection (b) so that the eligible entities
H. R. 2—181 
may relend the funds to individuals and entities for the purposes 
described in subsection (c). 
‘‘(b) ELIGIBLE ENTITIES.—Entities eligible for loans described 
in subsection (a) are cooperatives, credit unions, and nonprofit 
organizations with— 
‘‘(1) certification under section 1805.201 of title 12, Code 
of Federal Regulations (or successor regulations), to operate 
as a lender; 
‘‘(2) experience assisting socially disadvantaged farmers 
and ranchers (as defined in subsection (a) of section 2501 of 
the Food, Agriculture, Conservation, and Trade Act of 1990 
(7 U.S.C. 2279)) or limited resource or new and beginning 
farmers and ranchers, rural businesses, cooperatives, or credit 
unions, including experience in making and servicing agricul-
tural and commercial loans; and 
‘‘(3) the ability to provide adequate assurance of the repay-
ment of a loan. 
‘‘(c) ELIGIBLE PURPOSES.—The proceeds from loans made by 
the Secretary pursuant to subsection (a) shall be re-lent by eligible 
entities for projects that assist heirs with undivided ownership 
interests to resolve ownership and succession on farmland that 
has multiple owners. 
‘‘(d) PREFERENCE.—In making loans under subsection (a), the 
Secretary shall give preference to eligible entities— 
‘‘(1) with not less than 10 years of experience serving 
socially disadvantaged farmers and ranchers; and 
‘‘(2) in States that have adopted a statute consisting of 
an enactment or adoption of the Uniform Partition of Heirs 
Property Act, as approved and recommended for enactment 
in all States by the National Conference of Commissioners 
on Uniform State Laws in 2010, that relend to owners of 
heirs property (as defined in that Act). 
‘‘(e) LOAN TERMS AND CONDITIONS.—The following terms and 
conditions shall apply to loans made under this section: 
‘‘(1) The interest rate at which intermediaries may borrow 
funds under this section shall be determined by the Secretary. 
‘‘(2) The rates, terms, and payment structure for borrowers 
to which intermediaries lend shall be— 
‘‘(A) determined by the intermediary in an amount 
sufficient to cover the cost of operating and sustaining 
the revolving loan fund; and 
‘‘(B) clearly and publicly disclosed to qualified ultimate 
borrowers. 
‘‘(3) Borrowers to which intermediaries lend shall be— 
‘‘(A) required to complete a succession plan as a condi-
tion of the loan; and 
‘‘(B) be offered the opportunity to borrow sufficient 
funds to cover costs associated with the succession plan 
under subparagraph (A) and other associated legal and 
closing costs. 
‘‘(f) REPORT.—Not later than 1 year after the date of enactment 
of this section, the Secretary shall submit to the Committee on 
Agriculture of the House of Representatives and the Committee 
on Agriculture, Nutrition, and Forestry of the Senate a report 
describing the operation and outcomes of the program under this 
section, with recommendations on how to strengthen the program.
H. R. 2—182 
‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 
to be appropriated to carry out this section $10,000,000 for each 
of fiscal years 2019 through 2023.’’. 
Subtitle B—Operating Loans 
SEC. 5201. LIMITATIONS ON AMOUNT OF OPERATING LOANS. 
Section 313 of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1943) is amended— 
(1) in subsection (a)(1)— 
(A) by striking ‘‘$300,000’’ and inserting ‘‘$400,000’’; 
(B) by striking ‘‘$700,000’’ and inserting ‘‘$1,750,000’’; 
and 
(C) by striking ‘‘2000’’ and inserting ‘‘2019’’; and 
(2) in subsection (b)— 
(A) in paragraph (1), by striking ‘‘August’’ and inserting 
‘‘July’’; and 
(B) in paragraph (2), by striking ‘‘ending on August 
31, 1996’’ and inserting ‘‘that immediately precedes the 
12-month period described in paragraph (1)’’. 
SEC. 5202. MICROLOANS. 
Section 313(c)(2) of the Consolidated Farm and Rural Develop-
ment Act (7 U.S.C. 1943(c)(2)) is amended by striking ‘‘title’’ and 
inserting ‘‘subsection’’. 
SEC. 5203. COOPERATIVE LENDING PILOT PROJECTS. 
Section 313(c)(4)(A) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1943(c)(4)(A)) is amended by striking 
‘‘2018’’ and inserting ‘‘2023’’. 
Subtitle C—Administrative Provisions 
SEC. 5301. BEGINNING FARMER AND RANCHER INDIVIDUAL DEVELOP-
MENT ACCOUNTS PILOT PROGRAM. 
Section 333B(h) of the Consolidated Farm and Rural Develop-
ment Act (7 U.S.C. 1983b(h)) is amended by striking ‘‘2018’’ and 
inserting ‘‘2023’’. 
SEC. 5302. LOAN AUTHORIZATION LEVELS. 
Section 346(b)(1) of the Consolidated Farm and Rural Develop-
ment Act (7 U.S.C. 1994(b)(1)) is amended— 
(1) in the matter preceding subparagraph (A), by striking 
‘‘$4,226,000,000 for each of fiscal years 2008 through 2018’’ 
and inserting ‘‘$10,000,000,000 for each of fiscal years 2019 
through 2023’’; and 
(2) by striking subparagraphs (A) and (B) and inserting 
the following: 
‘‘(A) $3,000,000,000 shall be for direct loans, of which— 
‘‘(i) $1,500,000,000 shall be for farm ownership 
loans under subtitle A; and 
‘‘(ii) $1,500,000,000 shall be for operating loans 
under subtitle B; and 
‘‘(B) $7,000,000,000 shall be for guaranteed loans, of 
which—
H. R. 2—183 
‘‘(i) $3,500,000,000 shall be for farm ownership 
loans under subtitle A; and 
‘‘(ii) $3,500,000,000 shall be for operating loans 
under subtitle B.’’. 
SEC. 5303. LOAN FUND SET-ASIDES. 
Section 346(b)(2)(A)(ii)(III) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1994(b)(2)(A)(ii)(III)) is amended by 
striking ‘‘2018’’ and inserting ‘‘2023’’. 
SEC. 5304. USE OF ADDITIONAL FUNDS FOR DIRECT OPERATING 
MICROLOANS UNDER CERTAIN CONDITIONS. 
Section 346(b) of the Consolidated Farm and Rural Develop-
ment Act (7 U.S.C. 1994(b)) is amended by adding at the end 
the following: 
‘‘(5) USE
OF
ADDITIONAL
FUNDS
FOR
DIRECT
OPERATING 
MICROLOANS UNDER CERTAIN CONDITIONS.— 
‘‘(A) IN GENERAL.—If the Secretary determines that 
the amount needed for a fiscal year for direct operating 
loans (including microloans) under subtitle B is greater 
than the aggregate principal amount authorized for that 
fiscal year by this Act, an appropriations Act, or any other 
provision of law, the Secretary shall make additional 
microloans under subtitle B using amounts made available 
under subparagraph (C). 
‘‘(B) NOTICE.—Not later than 15 days before the date 
on which the Secretary uses the authority under subpara-
graph (A), the Secretary shall submit a notice of the use 
of that authority to— 
‘‘(i) the Committee on Appropriations of the House 
of Representatives; 
‘‘(ii) the Committee on Appropriations of the 
Senate; 
‘‘(iii) the Committee on Agriculture of the House 
of Representatives; and 
‘‘(iv) the Committee on Agriculture, Nutrition, and 
Forestry of the Senate. 
‘‘(C) AUTHORIZATION
OF
APPROPRIATIONS.—There is 
authorized to be appropriated to carry out this paragraph 
$5,000,000 for each of fiscal years 2019 through 2023.’’. 
SEC. 5305. EQUITABLE RELIEF. 
The Consolidated Farm and Rural Development Act is amended 
by inserting after section 365 (7 U.S.C. 2008) the following: 
‘‘SEC. 366. EQUITABLE RELIEF. 
‘‘(a) IN GENERAL.—Subject to subsection (b), the Secretary may 
provide a form of relief described in subsection (c) to any farmer 
or rancher who— 
‘‘(1) received a direct farm ownership, operating, or emer-
gency loan under this title; and 
‘‘(2) the Secretary determines is not in compliance with 
the requirements of this title with respect to the loan. 
‘‘(b) LIMITATION.—The Secretary may only provide relief to a 
farmer or rancher under subsection (a) if the Secretary determines 
that the farmer or rancher— 
‘‘(1) acted in good faith; and
H. R. 2—184 
‘‘(2) relied on an action of, or the advice of, the Secretary 
(including any authorized representative of the Secretary) to 
the detriment of the farming or ranching operation of the 
farmer or rancher. 
‘‘(c) FORMS OF RELIEF.—The Secretary may provide to a farmer 
or rancher under subsection (a) any of the following forms of relief: 
‘‘(1) The farmer or rancher may retain loans or other bene-
fits received in association with the loan with respect to which 
the farmer or rancher was determined to be noncompliant 
under subsection (a)(2). 
‘‘(2) The farmer or rancher may receive such other equitable 
relief as the Secretary determines to be appropriate. 
‘‘(d) CONDITION.—As a condition of receiving relief under this 
section, the Secretary may require the farmer or rancher to take 
actions designed to remedy the noncompliance. 
‘‘(e) ADMINISTRATIVE APPEAL; JUDICIAL REVIEW.—A determina-
tion or action of the Secretary under this section— 
‘‘(1) shall be final; and 
‘‘(2) shall not be subject to administrative appeal or judicial 
review under chapter 7 of title 5, United States Code.’’. 
SEC. 5306. SOCIALLY DISADVANTAGED FARMERS AND RANCHERS; 
QUALIFIED BEGINNING FARMERS AND RANCHERS. 
The Consolidated Farm and Rural Development Act is amended 
by inserting after section 366 (as added by section 5305) the fol-
lowing: 
‘‘SEC. 367. SOCIALLY DISADVANTAGED FARMERS AND RANCHERS; 
QUALIFIED BEGINNING FARMERS AND RANCHERS. 
‘‘In the case of a loan guaranteed by the Secretary under 
subtitle A or B to a socially disadvantaged farmer or rancher 
(as defined in section 355(e)) or a qualified beginning farmer or 
rancher, the Secretary may provide for a standard guarantee plan, 
which shall cover an amount equal to 95 percent of the outstanding 
principal of the loan.’’. 
SEC. 5307. EMERGENCY LOAN ELIGIBILITY. 
Section 373(b)(2)(B) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 2008h(b)(2)(B)) is amended— 
(1) by redesignating clauses (i) and (ii) as subclauses (I) 
and (II), respectively, and indenting appropriately; 
(2) in the matter preceding subclause (I) (as so redesig-
nated), by striking ‘‘The Secretary’’ and inserting the following: 
‘‘(i) IN GENERAL.—The Secretary’’; and 
(3) by adding at the end the following: 
‘‘(ii) RESTRUCTURED
LOANS.—For purposes of 
clause (i), a borrower who was restructured with a 
write-down or restructuring under section 353 shall 
not be considered to have received debt forgiveness 
on a loan made or guaranteed under this title.’’.
H. R. 2—185 
Subtitle D—Miscellaneous 
SEC. 5401. TECHNICAL CORRECTIONS TO THE CONSOLIDATED FARM 
AND RURAL DEVELOPMENT ACT. 
(a)(1) Section 321(a) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1961(a)) is amended in the second sen-
tence by striking ‘‘and limited liability companies’’ and inserting 
‘‘limited liability companies, and such other legal entities’’. 
(2) The amendment made by this subsection shall take effect 
as if included in the enactment of section 5201(2)(C) of the Agricul-
tural Act of 2014 (Public Law 113–79) in lieu of the amendment 
made by such section. 
(b)(1) Section 331D(e) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1981d(e)) is amended by inserting after 
‘‘within 60 days after receipt of the notice required in this section’’ 
the following: ‘‘or, in extraordinary circumstances as determined 
by the applicable State director, after the 60-day period’’. 
(2) The amendment made by this subsection shall take effect 
as if included in the enactment of section 10 of the Agricultural 
Credit Improvement Act of 1992 (Public Law 102–554). 
(c)(1) Section 333A(f)(1)(A) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1983a(f)(1)(A)) is amended by striking 
‘‘114’’ and inserting ‘‘339’’. 
(2) The amendment made by this subsection shall take effect 
as if included in the enactment of section 14 of the Agricultural 
Credit Improvement Act of 1992 (Public Law 102–554). 
(d) Section 339(d)(3) of the Consolidated Farm and Rural 
Development Act (7 U.S.C.1989(d)(3)) is amended by striking ‘‘pre-
ferred certified lender’’ and inserting ‘‘Preferred Certified Lender’’. 
(e)(1) Section 343(a)(11)(C) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1991(a)(11)(C)) is amended by striking 
‘‘or joint operators’’ and inserting ‘‘joint operator, or owners’’. 
(2) The amendment made by this subsection shall take effect 
as of the effective date of section 5303(a)(2) of the Agricultural 
Act of 2014 (Public Law 113–79). 
(f)(1) Section 343(b) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1991(b)) is amended by striking ‘‘307(e)’’ 
and inserting ‘‘307(d)’’. 
(2) The amendment made by paragraph (1) shall take effect 
as of the date of enactment of the Agricultural Act of 2014 (Public 
Law 113–79). 
(g) Section 346(a) of the Consolidated Farm and Rural Develop-
ment Act (7 U.S.C.1994(a)) is amended by striking the last comma. 
SEC. 5402. STATE AGRICULTURAL MEDIATION PROGRAMS. 
(a) ISSUES COVERED BY STATE MEDIATION PROGRAMS.—Section 
501(c) of the Agricultural Credit Act of 1987 (7 U.S.C. 5101(c)) 
is amended— 
(1) in paragraph (1)— 
(A) in subparagraph (B)— 
(i) in the matter preceding clause (i), by striking 
‘‘under the jurisdiction of the Department of Agri-
culture’’; 
(ii) in clause (ii), by inserting ‘‘and the national 
organic program established under the Organic Foods
H. R. 2—186 
Production Act of 1990 (7 U.S.C. 6501 et seq.)’’ before 
the period at the end; and 
(iii) by striking clause (vii) and inserting the fol-
lowing: 
‘‘(vii) Lease issues, including land leases and equip-
ment leases. 
‘‘(viii) Family farm transition. 
‘‘(ix) Farmer-neighbor disputes. 
‘‘(x) Such other issues as the Secretary or the 
head of the department of agriculture of each partici-
pating State considers appropriate for better serving 
the agricultural community and persons eligible for 
mediation.’’; and 
(B) by adding at the end the following: 
‘‘(C) MEDIATION SERVICES.—Funding provided for the 
mediation program of a qualifying State may also be used 
to provide credit counseling to persons described in para-
graph (2)— 
‘‘(i) prior to the initiation of any mediation 
involving the Department of Agriculture; or 
‘‘(ii) unrelated to any ongoing dispute or mediation 
in which the Department of Agriculture is a party.’’; 
(2) in paragraph (2)(A)— 
(A) in clause (ii), by striking ‘‘and’’ after the semicolon; 
(B) in clause (iii), by striking the period at the end 
and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(iv) any other persons involved in an issue for 
which mediation services are provided by a mediation 
program described in paragraph (1)(B).’’; and 
(3) in paragraph (3)(F), by striking ‘‘that persons’’ and 
inserting the following: ‘‘that— 
‘‘(i) the Department of Agriculture receives ade-
quate notification of those issues; and 
‘‘(ii) persons’’. 
(b) REPORT REQUIRED.—Section 505 of the Agricultural Credit 
Act of 1987 (7 U.S.C. 5105) is amended to read as follows: 
‘‘SEC. 505. REPORT. 
‘‘Not later than 2 years after the date of enactment of the 
Agriculture Improvement Act of 2018, the Secretary shall submit 
to Congress a report describing— 
‘‘(1) the effectiveness of the State mediation programs 
receiving matching grants under this subtitle; 
‘‘(2) recommendations for improving the delivery of medi-
ation services to producers; 
‘‘(3) the steps being taken to ensure that State mediation 
programs receive timely funding under this subtitle; and 
‘‘(4) the savings to the States as a result of having a 
mediation program.’’. 
(c) AUTHORIZATION
OF APPROPRIATIONS.—Section 506 of the 
Agricultural Credit Act of 1987 (7 U.S.C. 5106) is amended by 
striking ‘‘2018’’ and inserting ‘‘2023’’. 
SEC. 5403. COMPENSATION OF BANK DIRECTORS. 
Section 4.21 of the Farm Credit Act of 1971 (12 U.S.C. 2209) 
is repealed.
H. R. 2—187 
SEC. 5404. SHARING OF PRIVILEGED AND CONFIDENTIAL INFORMA-
TION. 
Section 5.19 of the Farm Credit Act of 1971 (12 U.S.C. 2254) 
is amended by adding at the end the following: 
‘‘(e) SHARING
OF PRIVILEGED
AND CONFIDENTIAL INFORMA-
TION.—A System institution shall not be considered to have waived 
the confidentiality of a privileged communication with an attorney 
or an accountant if the System institution provides the content 
of the communication to the Farm Credit Administration pursuant 
to the supervisory or regulatory authorities of the Farm Credit 
Administration.’’. 
SEC. 5405. FACILITY HEADQUARTERS. 
Section 5.16 of the Farm Credit Act of 1971 (12 U.S.C. 2251) 
is amended by striking all that precedes ‘‘to the rental of quarters’’ 
and inserting the following: 
‘‘SEC. 5.16. QUARTERS AND FACILITIES FOR THE FARM CREDIT 
ADMINISTRATION. 
‘‘(a) The Farm Credit Administration shall maintain its prin-
cipal office within the Washington D.C.-Maryland-Virginia standard 
metropolitan statistical area, and such other offices within the 
United States as in its judgment are necessary. 
‘‘(b) As an alternate’’. 
SEC. 5406. REMOVAL AND PROHIBITION AUTHORITY; INDUSTRY-WIDE 
PROHIBITION. 
Part C of title V of the Farm Credit Act of 1971 is amended 
by inserting after section 5.29 (12 U.S.C. 2265) the following: 
‘‘SEC. 5.29A. REMOVAL AND PROHIBITION AUTHORITY; INDUSTRY-WIDE 
PROHIBITION. 
‘‘(a) DEFINITION OF PERSON.—In this section, the term ‘person’ 
means— 
‘‘(1) an individual; and 
‘‘(2) in the case of a specific determination by the Farm 
Credit Administration, a legal entity. 
‘‘(b) INDUSTRY-WIDE PROHIBITION.—Except as provided in sub-
section (c), any person who, pursuant to an order issued under 
section 5.28 or 5.29, has been removed or suspended from office 
at a System institution or prohibited from participating in the 
conduct of the affairs of a System institution shall not, during 
the period of effectiveness of the order, continue or commence 
to hold any office in, or participate in any manner in the conduct 
of the affairs of— 
‘‘(1) any insured depository institution subject to section 
8(e)(7)(A)(i) of the Federal Deposit Insurance Act (12 U.S.C. 
1818(e)(7)(A)(i)); 
‘‘(2) any institution subject to section 8(e)(7)(A)(ii) of the 
Federal Deposit Insurance Act (12 U.S.C. 1818(e)(7)(A)(ii)); 
‘‘(3) any insured credit union under the Federal Credit 
Union Act (12 U.S.C. 1751 et seq.); 
‘‘(4) any Federal home loan bank; 
‘‘(5) any institution chartered under this Act; 
‘‘(6) any appropriate Federal financial institutions regu-
latory agency (as defined in section 8(e)(7)(D) of the Federal 
Deposit Insurance Act (12 U.S.C. 1818(e)(7)(D))); 
‘‘(7) the Federal Housing Finance Agency; or
H. R. 2—188 
‘‘(8) the Farm Credit Administration. 
‘‘(c) EXCEPTION
FOR
INSTITUTION-AFFILIATED
PARTY
THAT 
RECEIVES WRITTEN CONSENT.— 
‘‘(1) IN GENERAL.— 
‘‘(A) AFFILIATED PARTIES.—If, on or after the date on 
which an order described in subsection (b) is issued that 
removes or suspends an institution-affiliated party from 
office at a System institution or prohibits an institution- 
affiliated party from participating in the conduct of the 
affairs of a System institution, that party receives written 
consent described in subparagraph (B), subsection (b) shall 
not apply to that party— 
‘‘(i) to the extent provided in the written consent 
received; and 
‘‘(ii) with respect to the institution described in 
each written consent. 
‘‘(B) WRITTEN CONSENT DESCRIBED.—The written con-
sent referred to in subparagraph (A) is written consent 
received from— 
‘‘(i) the Farm Credit Administration; and 
‘‘(ii) each appropriate Federal financial institutions 
regulatory agency (as defined in section 8(e)(7)(D) of 
the 
Federal 
Deposit 
Insurance 
Act 
(12 
U.S.C. 
1818(e)(7)(D))) of the applicable institution described 
in any of paragraphs (1), (2), (3), or (4) of subsection 
(b) with respect to which the party proposes to be 
become an affiliated party. 
‘‘(2) DISCLOSURE.—Any agency described in clause (i) or 
(ii) of paragraph (1)(B) that provides a written consent under 
that paragraph shall— 
‘‘(A) report the action to the Farm Credit Administra-
tion; and 
‘‘(B) publicly disclose the action. 
‘‘(3) CONSULTATION
BETWEEN
AGENCIES.—The agencies 
described in clauses (i) and (ii) of paragraph (1)(B) shall consult 
with each other before providing any written consent under 
that paragraph. 
‘‘(d) VIOLATIONS.—A violation of subsection (b) by any person 
who is subject to an order described in that subsection shall be 
treated as violation of that order.’’. 
SEC. 5407. JURISDICTION OVER INSTITUTION-AFFILIATED PARTIES. 
Part C of title V of the Farm Credit Act of 1971 is amended 
by inserting after section 5.31 (12 U.S.C. 2267) the following: 
‘‘SEC. 5.31A. JURISDICTION OVER INSTITUTION-AFFILIATED PARTIES. 
‘‘(a) IN GENERAL.—For purposes of sections 5.25, 5.26, and 
5.32, the jurisdiction of the Farm Credit Administration over par-
ties, and the authority of the Farm Credit Administration to initiate 
actions, shall include enforcement authority over institution-affili-
ated parties. 
‘‘(b) EFFECT OF SEPARATION ON JURISDICTION AND AUTHORITY.— 
Subject to subsection (c), the resignation, termination of employ-
ment or participation, or separation of an institution-affiliated party 
(including a separation caused by the merger, consolidation, con-
servatorship, or receivership of a Farm Credit System institution) 
shall not affect the jurisdiction and authority of the Farm Credit
H. R. 2—189 
Administration to issue any notice or order and proceed under 
this part against that party. 
‘‘(c) LIMITATION.—To proceed against a party under subsection 
(b), the notice or order described in that subsection shall be served 
not later than 6 years after the date on which the party ceased 
to be an institution-affiliated party with respect to the applicable 
Farm Credit System institution. 
‘‘(d) APPLICABILITY.—The date on which a party ceases to be 
an institution-affiliated party described in subsection (c) may occur 
before, on, or after the date of enactment of this section.’’. 
SEC. 5408. DEFINITION OF INSTITUTION-AFFILIATED PARTY. 
Section 5.35 of the Farm Credit Act of 1971 (12 U.S.C. 2271) 
is amended— 
(1) in paragraph (3), by striking ‘‘and’’ at the end; 
(2) by redesignating paragraph (4) as paragraph (5); and 
(3) by inserting after paragraph (3) the following: 
‘‘(4) the term ‘institution-affiliated party’ means— 
‘‘(A) a director, officer, employee, shareholder, or agent 
of a System institution; 
‘‘(B) an independent contractor (including an attorney, 
appraiser, or accountant) who knowingly or recklessly 
participates in— 
‘‘(i) a violation of law (including regulations) that 
is associated with the operations and activities of 1 
or more System institutions; 
‘‘(ii) a breach of fiduciary duty; or 
‘‘(iii) an unsafe practice that causes or is likely 
to cause more than a minimum financial loss to, or 
a significant adverse effect on, a System institution; 
and 
‘‘(C) any other person, as determined by the Farm 
Credit Administration (by regulation or on a case-by-case 
basis) who participates in the conduct of the affairs of 
a System institution; and’’. 
SEC. 5409. PROHIBITION ON USE OF FUNDS. 
Section 5.65 of the Farm Credit Act of 1971 (12 U.S.C. 2277a– 
14) is amended by adding at the end the following: 
‘‘(e) PROHIBITION ON USES OF FUNDS RELATED TO FEDERAL 
AGRICULTURAL MORTGAGE CORPORATION.—No funds from adminis-
trative accounts or from the Farm Credit System Insurance Fund 
may be used by the Corporation to provide assistance to the Federal 
Agricultural Mortgage Corporation or to support any activities 
related to the Federal Agricultural Mortgage Corporation.’’. 
SEC. 5410. EXPANSION OF ACREAGE EXCEPTION TO LOAN AMOUNT 
LIMITATION. 
(a) IN GENERAL.—Section 8.8(c)(2) of the Farm Credit Act of 
1971 (12 U.S.C. 2279aa–8(c)(2)) is amended by striking ‘‘1,000’’ 
and inserting ‘‘2,000’’. 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 
shall take effect 1 year after the date a report submitted in accord-
ance with section 5414 of this Act indicates that it is feasible 
to increase the acreage limitation in section 8.8(c)(2) of the Farm 
Credit Act of 1971 to 2,000 acres.
H. R. 2—190 
SEC. 5411. REPEAL OF OBSOLETE PROVISIONS; TECHNICAL CORREC-
TIONS. 
(1) Section 1.1(c) of the Farm Credit Act of 1971 (12 U.S.C. 
2001(c)) is amended in the first sentence by striking ‘‘including 
any costs of defeasance under section 4.8(b),’’. 
(2) Section 1.2 of the Farm Credit Act of 1971 (12 U.S.C. 
2002) is amended by striking subsection (a) and inserting the 
following: 
‘‘(a) COMPOSITION.—The Farm Credit System shall include the 
Farm Credit Banks, the bank for cooperatives, Agricultural Credit 
Banks, the Federal Land Bank Associations, the Federal Land 
Credit Associations, the Production Credit Associations, the agricul-
tural credit associations, the Federal Farm Credit Banks Funding 
Corporation, the Federal Agricultural Mortgage Corporation, service 
corporations established pursuant to section 4.25, and such other 
institutions as may be made a part of the Farm Credit System, 
all of which shall be chartered by and subject to regulation by 
the Farm Credit Administration.’’. 
(3) Section 2.4 of the Farm Credit Act of 1971 (12 U.S.C. 
2075) is amended by striking subsection (d). 
(4) Section 3.0(a) of the Farm Credit Act of 1971 (12 U.S.C. 
2121(a)) is amended— 
(A) in the third sentence, by striking ‘‘and a Central 
Bank for Cooperatives’’; and 
(B) by striking the fifth sentence. 
(5) Section 3.2 of the Farm Credit Act of 1971 (12 U.S.C. 
2123) is amended— 
(A) in subsection (a)— 
(i) in paragraph (1), by striking ‘‘not merged into 
the United Bank for Cooperatives or the National Bank 
for Cooperatives’’; and 
(ii) in paragraph (2)(A), in the matter preceding 
clause (i), by striking ‘‘(other than the National Bank 
for Cooperatives)’’; 
(B) by striking subsection (b); 
(C) in subsection (a)— 
(i) by striking ‘‘(a)(1) Each bank’’ and inserting 
the following: 
‘‘(a) IN GENERAL.—Each bank’’; and 
(ii) by striking ‘‘(2)(A) If approved’’ and inserting 
the following: 
‘‘(b) NOMINATION AND ELECTION.— 
‘‘(1) IN GENERAL.—If approved’’; 
(D) in subsection (b)(1) (as so designated)— 
(i) in subparagraph (B), by striking ‘‘(B) The total’’ 
and inserting the following: 
‘‘(2) NUMBER OF VOTES.—The total’’; and 
(ii) by redesignating clauses (i) and (ii) as subpara-
graphs (A) and (B), respectively, and indenting appro-
priately; and 
(E) in paragraph (2) (as so designated), by striking 
‘‘paragraph’’ and inserting ‘‘subsection’’. 
(6) Section 3.5 of the Farm Credit Act of 1971 (12 U.S.C. 
2126) is amended in the third sentence by striking ‘‘district’’. 
(7) Section 3.7(a) of the Farm Credit Act of 1971 (12 U.S.C. 
2128(a)) is amended by striking the second sentence.
H. R. 2—191 
(8) Section 3.8(b)(1)(A) of the Farm Credit Act of 1971 
(12 U.S.C. 2129(b)(1)(A)) is amended by inserting ‘‘(or any suc-
cessor agency)’’ after ‘‘Rural Electrification Administration’’. 
(9) Section 3.9(a) of the Farm Credit Act of 1971 (12 U.S.C. 
2130(a)) is amended by striking the third sentence. 
(10) Section 3.10 of the Farm Credit Act of 1971 (12 U.S.C. 
2131) is amended— 
(A) in subsection (c), by striking the second sentence; 
and 
(B) in subsection (d)— 
(i) by striking ‘‘district’’ each place it appears; and 
(ii) by inserting ‘‘for cooperatives (or any successor 
bank)’’ before ‘‘on account’’. 
(11) Section 3.11 of the Farm Credit Act of 1971 (12 U.S.C. 
2132) is amended— 
(A) in subsection (a), in the first sentence, by striking 
‘‘subsections (b) and (c) of this section’’ and inserting ‘‘sub-
section (b)’’; 
(B) in subsection (b)— 
(i) in the first sentence, by striking ‘‘district’’; and 
(ii) in the second sentence, by striking ‘‘Except 
as provided in subsection (c) below, all’’ and inserting 
‘‘All’’; 
(C) by striking subsection (c); and 
(D) by redesignating subsections (d) through (f) as sub-
sections (c) through (e), respectively. 
(12) Part B of title III of the Farm Credit Act of 1971 
(12 U.S.C. 2141 et seq.) is amended in the part heading by 
striking ‘‘UNITED AND’’. 
(13) Section 3.20 of the Farm Credit Act of 1971 (12 U.S.C. 
2141) is amended— 
(A) in subsection (a), by striking ‘‘or the United Bank 
for Cooperatives, as the case may be’’; and 
(B) in subsection (b), by striking ‘‘the district banks 
for cooperatives and the Central Bank for Cooperatives’’ 
and inserting ‘‘the constituent banks described in section 
413(b) of the Agricultural Credit Act of 1987 (12 U.S.C. 
2121 note; Public Law 100–233)’’. 
(14) Section 3.21 of the Farm Credit Act of 1971 (12 U.S.C. 
2142) is repealed. 
(15) Section 3.28 of the Farm Credit Act of 1971 (12 U.S.C. 
2149) is amended by striking ‘‘a district bank for cooperatives 
and the Central Bank for Cooperatives’’ and inserting ‘‘the 
constituent banks described in section 413(b) of the Agricultural 
Credit Act of 1987 (12 U.S.C. 2121 note; Public Law 100– 
233)’’. 
(16) Section 3.29 of the Farm Credit Act of 1971 (12 U.S.C. 
2149a) is repealed. 
(17) Section 4.0 of the Farm Credit Act of 1971 (12 U.S.C. 
2151) is repealed. 
(18) Section 4.8 of the Farm Credit Act of 1971 (12 U.S.C. 
2159) is amended— 
(A) by striking the section designation and heading 
and all that follows through ‘‘Each bank’’ in subsection 
(a) and inserting the following:
H. R. 2—192 
‘‘SEC. 4.8. PURCHASE AND SALE OF OBLIGATIONS. 
‘‘Each bank’’; and 
(B) by striking subsection (b). 
(19) Section 4.9 of the Farm Credit Act of 1971 (12 U.S.C. 
2160) is amended— 
(A) in subsection (d)— 
(i) by striking paragraph (2) and inserting the 
following: 
‘‘(3) REPRESENTATION OF BOARD.—The Farm Credit System 
Insurance Corporation shall not have representation on the 
board of directors of the Corporation.’’; 
(ii) in the undesignated matter following para-
graph (1)(D), by striking ‘‘In selecting’’ and inserting 
the following: 
‘‘(2) CONSIDERATIONS.—In selecting’’; and 
(iii) in paragraph (2) (as so designated), by 
inserting ‘‘of paragraph (1)’’ after ‘‘(A) and (B)’’; 
(B) by striking subsection (e); and 
(C) by redesignating subsection (f) as subsection (e). 
(20) Section 4.9A(c) of the Farm Credit Act of 1971 (12 
U.S.C. 2162(c)) is amended— 
(A) by striking ‘‘institution, and—’’ in the matter pre-
ceding paragraph (1) and all that follows through the period 
at the end of paragraph (2) and inserting ‘‘institution.’’; 
(B) by striking ‘‘If an institution’’ and inserting the 
following: 
‘‘(1) IN GENERAL.—If an institution’’; 
(C) in paragraph (1) (as so designated), by striking 
‘‘the receiver of the institution’’ and inserting ‘‘the Farm 
Credit System Insurance Corporation, acting as receiver,’’; 
and 
(D) by adding at the end the following: 
‘‘(2) FUNDING.—The Farm Credit System Insurance Cor-
poration shall use such funds from the Farm Credit Insurance 
Fund as are sufficient to carry out this section.’’. 
(21) Section 4.12A(a) of the Farm Credit Act of 1971 (12 
U.S.C. 2184(a)) is amended by striking paragraph (1) and 
inserting the following: 
‘‘(1) IN GENERAL.—A Farm Credit System bank or associa-
tion shall provide to a stockholder of the bank or association 
a current list of stockholders of the bank or association not 
later than 7 calendar days after the date on which the bank 
or association receives a written request for the stockholder 
list from the stockholder.’’. 
(22) Section 4.14A of the Farm Credit Act of 1971 (12 
U.S.C. 2202a) is amended— 
(A) in subsection (a)— 
(i) in the matter preceding paragraph (1), by 
inserting ‘‘and section 4.36’’ before the colon at the 
end; and 
(ii) in paragraph (5)(B)(ii)(I), by striking ‘‘4.14C,’’; 
(B) by striking subsection (h); 
(C) by redesignating subsections (i) through (l) as sub-
sections (h) through (k), respectively; and 
(D) in subsection (k) (as so redesignated), by striking 
‘‘production credit’’.
H. R. 2—193 
(23) Section 4.14C of the Farm Credit Act of 1971 (12 
U.S.C. 2202c) is repealed. 
(24) Section 4.17 of the Farm Credit Act of 1971 (12 U.S.C. 
2205) is amended in the third sentence by striking ‘‘Federal 
intermediate credit banks and’’. 
(25) Section 4.19(a) of the Farm Credit Act of 1971 (12 
U.S.C. 2207(a)) is amended— 
(A) in the first sentence— 
(i) by striking ‘‘district’’; and 
(ii) by striking ‘‘Federal land bank association and 
production credit’’; and 
(B) in the second sentence, by striking ‘‘units’’ and 
inserting ‘‘institutions’’. 
(26) Section 4.38 of the Farm Credit Act of 1971 (12 U.S.C. 
2219c) is amended by striking ‘‘The Assistance Board estab-
lished under section 6.0 and all’’ and inserting ‘‘All’’. 
(27) Section 4.39 of the Farm Credit Act of 1971 (12 U.S.C. 
2219d) is amended by striking ‘‘8.0(7))’’ and inserting ‘‘8.0)’’. 
(28) Section 5.16 of the Farm Credit Act of 1971 (12 U.S.C. 
2251) is amended in the undesignated matter following para-
graph (5) of subsection (b) (as designated by section 5405)— 
(A) in the fifth sentence, by striking ‘‘In actions under-
taken by the banks pursuant to the foregoing provisions 
of this section’’ and inserting the following: 
‘‘(5) AGENT
FOR
BANKS.—In actions undertaken by the 
banks pursuant to this section’’; 
(B) in the fourth sentence, by striking ‘‘The plans’’ 
and inserting the following: 
‘‘(4) APPROVAL OF BOARD.—The plans’’; 
(C) in the third sentence, by striking ‘‘The powers’’ 
and inserting the following: 
‘‘(3) POWERS OF BANKS.—The powers’’; 
(D) in the second sentence, by striking ‘‘Such advances’’ 
and inserting the following: 
‘‘(2) ADVANCES.—The advances of funds described in para-
graph (1)’’; and 
(E) in the first sentence, by striking ‘‘The Board’’ and 
inserting the following: 
‘‘(c) FINANCING.— 
‘‘(1) IN GENERAL.—The Board’’. 
(29) Section 5.17(a)(2) of the Farm Credit Act of 1971 
(12 U.S.C. 2252(a)(2)) is amended by striking the second and 
third sentences. 
(30) Section 5.18 of the Farm Credit Act of 1971 (12 U.S.C. 
2253) is repealed. 
(31) Section 5.19 of the Farm Credit Act of 1971 (12 U.S.C. 
2254) is amended— 
(A) in subsection (a)— 
(i) in the first sentence, by striking ‘‘Except for 
Federal land bank associations, each’’ and inserting 
‘‘Each’’; and 
(ii) by striking the second sentence; and 
(B) in subsection (b)— 
(i) by striking ‘‘(b)(1) Each’’ and inserting ‘‘(b) 
Each’’; 
(ii) in the matter preceding paragraph (2) (as so 
designated)—
H. R. 2—194 
(I) in the second sentence, by striking ‘‘, except 
with respect to any actions taken by any banks 
of the System under section 4.8(b),’’; and 
(II) by striking the third sentence; and 
(iii) by striking paragraphs (2) and (3). 
(32) Section 5.31 of the Farm Credit Act of 1971 (12 U.S.C. 
2267) is amended in the second sentence by striking ‘‘4.14A(i)’’ 
and inserting ‘‘4.14A(h)’’. 
(33) Section 5.32(h) of the Farm Credit Act of 1971 (12 
U.S.C. 2268(h)) is amended by striking ‘‘4.14A(i)’’ and inserting 
‘‘4.14A(h)’’. 
(34) Section 5.35 of the Farm Credit Act of 1971 (12 U.S.C. 
2271) is amended in paragraph (5) (as redesignated by section 
5408(2))— 
(A) in subparagraph (A), by adding ‘‘and’’ at the end; 
(B) by striking subparagraph (B); 
(C) by redesignating subparagraph (C) as subpara-
graph (B); and 
(D) in subparagraph (B) (as so redesignated)— 
(i) by striking ‘‘after December 31, 1992,’’; and 
(ii) by striking ‘‘by the Farm Credit System Assist-
ance Board under section 6.6 or’’. 
(35) Section 5.38 of the Farm Credit Act of 1971 (12 U.S.C. 
2274) is amended by striking ‘‘a farm’’ and all that follows 
through ‘‘land bank’’ and inserting ‘‘a Farm Credit Bank board, 
officer, or employee shall not remove any director or officer 
of any’’. 
(36) Section 5.44 of the Farm Credit Act of 1971 (12 U.S.C. 
2275) is repealed. 
(37) Section 5.58(2) of the Farm Credit Act of 1971 (12 
U.S.C. 2277a–7(2)) is amended by striking the second sentence. 
(38) Section 5.60 of the Farm Credit Act of 1971 (12 U.S.C. 
2277a–9) is amended— 
(A) in subsection (b), by striking the subsection des-
ignation and heading and all that follows through ‘‘The 
Corporation’’ in paragraph (2) and inserting the following: 
‘‘(b) AMOUNTS IN FUND.—The Corporation’’; and 
(B) in subsection (c)(2), by striking ‘‘Insurance Fund 
to—’’ in the matter preceding subparagraph (A) and all 
that follows through ‘‘ensure’’ in subparagraph (B) and 
inserting ‘‘Insurance Fund to ensure’’. 
(39) Title VI of the Farm Credit Act of 1971 (12 U.S.C. 
2278a et seq.) is repealed. 
(40) Section 7.9 of the Farm Credit Act of 1971 (12 U.S.C. 
2279c–2) is amended by striking subsection (c). 
(41) Section 7.10(a) of the Farm Credit Act of 1971 (12 
U.S.C. 2279d(a)) is amended by striking paragraph (4) and 
inserting the following: 
‘‘(4) the institution pays to the Farm Credit Insurance 
Fund the amount by which the total capital of the institution 
exceeds 6 percent of the assets;’’. 
(42) Section 8.0 of the Farm Credit Act of 1971 (12 U.S.C. 
2279aa) is amended— 
(A) in paragraph (2), by striking ‘‘means—’’ in the 
matter preceding subparagraph (A) and all that follows 
through the period at the end of the undesignated matter
H. R. 2—195 
following subparagraph (B) and inserting ‘‘means the board 
of directors established under section 8.2.’’; 
(B) by striking paragraphs (6) and (8); 
(C) by redesignating paragraphs (7), (9), and (10) as 
paragraphs (6), (7), and (8), respectively; and 
(D) in subparagraph (B)(i) of paragraph (7) (as so 
redesignated), by striking ‘‘(b) through (d)’’ and inserting 
‘‘(b) and (c)’’. 
(43) Section 8.2 of the Farm Credit Act of 1971 (12 U.S.C. 
2279aa–2) is amended— 
(A) by striking subsection (a); 
(B) in subsection (b), by striking the subsection des-
ignation and heading and all that follows through the 
period at the end of paragraph (1) and inserting the fol-
lowing: 
‘‘(a) IN GENERAL.— 
‘‘(1) ESTABLISHMENT.—The Corporation shall be under the 
management of the board of directors.’’; 
(C) in subsection (a) (as so designated)— 
(i) by striking ‘‘permanent board’’ each place it 
appears and inserting ‘‘Board’’; 
(ii) by striking paragraph (3); 
(iii) by redesignating paragraphs (4) through (10) 
as paragraphs (3) through (9), respectively; and 
(iv) in paragraph (3)(A) (as so redesignated), by 
striking ‘‘(6)’’ and inserting ‘‘(5)’’; and 
(D) by redesignating subsection (c) as subsection (b). 
(44) Section 8.4(a)(1) of the Farm Credit Act of 1971 (12 
U.S.C. 2279aa–4(a)(1)) is amended— 
(A) in the sixth sentence— 
(i) by striking ‘‘Class B’’ and inserting the fol-
lowing: 
‘‘(iii) CLASS B STOCK.—Class B’’; and 
(ii) 
by 
striking 
‘‘8.2(b)(2)(B)’’ 
and 
inserting 
‘‘8.2(a)(2)(B)’’; 
(B) in the fifth sentence— 
(i) by striking ‘‘Class A’’ and inserting the fol-
lowing: 
‘‘(ii) CLASS A STOCK.—Class A’’; and 
(ii) 
by 
striking 
‘‘8.2(b)(2)(A)’’ 
and 
inserting 
‘‘8.2(a)(2)(A)’’; 
(C) in the fourth sentence, by striking ‘‘The stock’’ 
and inserting the following: 
‘‘(D) CLASSES OF STOCK.— 
‘‘(i) IN GENERAL.—The stock’’; 
(D) by striking the third sentence and inserting the 
following: 
‘‘(C) OFFERS.— 
‘‘(i) IN GENERAL.—The Board shall offer the voting 
common stock to banks, other financial institutions, 
insurance companies, and System institutions under 
such terms and conditions as the Board may adopt. 
‘‘(ii) REQUIREMENTS.—The voting common stock 
shall be fairly and broadly offered to ensure that— 
‘‘(I) no institution or institutions acquire a dis-
proportionate share of the total quantity of the
H. R. 2—196 
voting common stock outstanding of a class of 
stock; and 
‘‘(II) capital contributions and issuances of 
voting common stock for the contributions are 
fairly distributed between entities eligible to hold 
class A stock and class B stock.’’; 
(E) in the second sentence, by striking ‘‘Each share’’ 
and inserting the following: 
‘‘(B) NUMBER OF VOTES.—Each share’’; and 
(F) in the first sentence, by striking ‘‘The Corporation’’ 
and inserting the following: 
‘‘(A) IN GENERAL.—The Corporation’’. 
(45) Section 8.6 of the Farm Credit Act of 1971 (12 U.S.C. 
2279aa–6) is amended— 
(A) by striking subsection (d); 
(B) by redesignating subsection (e) as subsection (d); 
and 
(C) in paragraph (2) of subsection (d) (as so redesig-
nated), by striking ‘‘8.0(9))’’ and inserting ‘‘8.0)’’. 
(46) Section 8.9 of the Farm Credit Act of 1971 (12 U.S.C. 
2279aa–9) is amended by striking ‘‘4.14C,’’ each place it 
appears. 
(47) Section 8.11(e) of the Farm Credit Act of 1971 (12 
U.S.C. 2279aa–11(e)) is amended by striking ‘‘8.0(7))’’ and 
inserting ‘‘8.0)’’. 
(48) Section 8.32(a) of the Farm Credit Act of 1971 (12 
U.S.C. 2279bb–1(a)) is amended— 
(A) in the first sentence of the matter preceding para-
graph (1), by striking ‘‘Not sooner than the expiration of 
the 3-year period beginning on the date of enactment of 
the Farm Credit System Reform Act of 1996, the’’ and 
inserting ‘‘The’’; and 
(B) in paragraph (1)(B), by striking ‘‘8.0(9)(C)’’ and 
inserting ‘‘8.0(7)(C)’’. 
(49) Section 8.33(b)(2)(A) of the Farm Credit Act of 1971 
(12 U.S.C. 2279bb–2(b)(2)(A)) is amended by striking ‘‘8.6(e)’’ 
and inserting ‘‘8.6(d)’’. 
(50) Section 8.35 of the Farm Credit Act of 1971 (12 U.S.C. 
2279bb–4) is amended by striking subsection (e). 
(51) Section 8.38 of the Farm Credit Act of 1971 (12 U.S.C. 
2279bb–7) is repealed. 
(52) Section 4 of the Agricultural Marketing Act (12 U.S.C. 
1141b) is repealed. 
(53) Section 5 of the Agricultural Marketing Act (12 U.S.C. 
1141c) is repealed. 
(54) Section 6 of the Agricultural Marketing Act (12 U.S.C. 
1141d) is repealed. 
(55) Section 7 of the Agricultural Marketing Act (12 U.S.C. 
1141e) is repealed. 
(56) Section 8 of the Agricultural Marketing Act (12 U.S.C. 
1141f) is repealed. 
(57) Section 14 of the Agricultural Marketing Act (12 U.S.C. 
1141i) is repealed. 
(58) The Act of June 22, 1939 (53 Stat. 853, chapter 239; 
12 U.S.C. 1141d–1), is repealed. 
(59) Section 201(e) of the Emergency Relief and Construc-
tion Act of 1932 (12 U.S.C. 1148) is repealed.
H. R. 2—197 
(60) Section 2 of the Act of July 14, 1953 (67 Stat. 150, 
chapter 192; 12 U.S.C. 1148a–4), is repealed. 
(61) Section 32 of the Farm Credit Act of 1937 (12 U.S.C. 
1148b) is repealed. 
(62) Section 33 of the Farm Credit Act of 1937 (12 U.S.C. 
1148c) is repealed. 
(63) Section 34 of the Farm Credit Act of 1937 (12 U.S.C. 
1148d) is repealed. 
(64) The Joint Resolution of March 3, 1932 (47 Stat. 60, 
chapter 70; 12 U.S.C. 1401 et seq.), is repealed. 
SEC. 5412. CORPORATION AS CONSERVATOR OR RECEIVER; CERTAIN 
OTHER POWERS. 
Part E of title V of the Farm Credit Act of 1971 is amended 
by inserting after section 5.61B (12 U.S.C. 2277a–10b) the following: 
‘‘SEC. 5.61C. CORPORATION AS CONSERVATOR OR RECEIVER; CERTAIN 
OTHER POWERS. 
‘‘(a) DEFINITION
OF INSTITUTION.—In this section, the term 
‘institution’ includes any System institution for which the Corpora-
tion has been appointed as conservator or receiver. 
‘‘(b) CERTAIN POWERS AND DUTIES OF CORPORATION AS CONSER-
VATOR OR RECEIVER.—In addition to the powers inherent in the 
express grant of corporate authority under section 5.58(9), and 
other powers exercised by the Corporation under this part, the 
Corporation shall have the following express powers to act as a 
conservator or receiver: 
‘‘(1) RULEMAKING AUTHORITY OF CORPORATION.—The Cor-
poration may prescribe such regulations as the Corporation 
determines to be appropriate regarding the conduct of 
conservatorships or receiverships. 
‘‘(2) GENERAL POWERS.— 
‘‘(A) SUCCESSOR TO SYSTEM INSTITUTION.—The Corpora-
tion shall, as conservator or receiver, and by operation 
of law, succeed to— 
‘‘(i) all rights, titles, powers, and privileges of the 
System institution, and of any stockholder, member, 
officer, or director of such System institution with 
respect to the System institution and the assets of 
the System institution; and 
‘‘(ii) title to the books, records, and assets of any 
previous conservator or other legal custodian of such 
System institution. 
‘‘(B) OPERATE THE SYSTEM INSTITUTION.—The Corpora-
tion may, as conservator or receiver— 
‘‘(i) take over the assets of and operate the System 
institution with all the powers of the stockholders or 
members, the directors, and the officers of the System 
institution and conduct all business of the System 
institution; 
‘‘(ii) collect all obligations and money due the 
System institution; 
‘‘(iii) perform all functions of the System institution 
in the name of the System institution which are con-
sistent with the appointment as conservator or 
receiver; 
‘‘(iv) preserve and conserve the assets and property 
of such System institution; and
H. R. 2—198 
‘‘(v) provide by contract for assistance in fulfilling 
any function, activity, action, or duty of the Corporation 
as conservator or receiver. 
‘‘(C) FUNCTIONS
OF
SYSTEM
INSTITUTION’S
OFFICERS, 
DIRECTORS, MEMBERS, AND STOCKHOLDERS.—The Corpora-
tion may, by regulation or order, provide for the exercise 
of any function by any stockholder, member, director, or 
officer of any System institution for which the Corporation 
has been appointed conservator or receiver. 
‘‘(D) POWERS AS CONSERVATOR.—Subject to any Farm 
Credit Administration approvals required under this Act, 
the Corporation may, as conservator, take such action as 
may be— 
‘‘(i) necessary to put the System institution in a 
sound and solvent condition; and 
‘‘(ii) appropriate to carry on the business of the 
System institution and preserve and conserve the 
assets and property of the System institution. 
‘‘(E) ADDITIONAL POWERS AS RECEIVER.—The Corpora-
tion may, as receiver, liquidate the System institution and 
proceed to realize upon the assets of the System institution, 
in such manner as the Corporation determines to be appro-
priate. 
‘‘(F) ORGANIZATION OF NEW SYSTEM BANK.—The Cor-
poration may, as receiver with respect to any System bank, 
organize a bridge System bank under subsection (h). 
‘‘(G) MERGER; TRANSFER OF ASSETS AND LIABILITIES.— 
‘‘(i) IN GENERAL.—Subject to clause (ii), the Cor-
poration may, as conservator or receiver— 
‘‘(I) merge the System institution with another 
System institution; and 
‘‘(II) transfer or sell any asset or liability of 
the System institution in default without any 
approval, assignment, or consent with respect to 
such transfer. 
‘‘(ii) APPROVAL.—No merger or transfer under 
clause (i) may be made to another System institution 
(other than a bridge System bank under subsection 
(h)) without the approval of the Farm Credit Adminis-
tration. 
‘‘(H) PAYMENT OF VALID OBLIGATIONS.—The Corpora-
tion, as conservator or receiver, shall, to the extent that 
proceeds are realized from the performance of contracts 
or the sale of the assets of a System institution, pay all 
valid obligations of the System institution in accordance 
with the prescriptions and limitations of this section. 
‘‘(I) INCIDENTAL POWERS.— 
‘‘(i) IN GENERAL.—The Corporation may, as conser-
vator or receiver— 
‘‘(I) exercise all powers and authorities specifi-
cally granted to conservators or receivers, respec-
tively, under this section and such incidental 
powers as shall be necessary to carry out such 
powers; and 
‘‘(II) take any action authorized by this section, 
which the Corporation determines is in the best 
interests of—