H. R. 6124—489 
‘‘(ii) the amount determined under subsection 
(d)(2)(B)(ii) for the coverage level selected to cover oper-
ating and administrative expenses. 
‘‘(C) In the case of additional area coverage equal to 
or greater than 85 percent, but less than 90 percent, of 
the recorded county yield indemnified at not greater than 
100 percent of the expected market price, the amount shall 
be equal to the sum of— 
‘‘(i) 49 percent of the amount of the premium estab-
lished under subsection (d)(2)(B)(i) for the coverage 
level selected; and 
‘‘(ii) the amount determined under subsection 
(d)(2)(B)(ii) for the coverage level selected to cover oper-
ating and administrative expenses. 
‘‘(D) In the case of additional area coverage equal to 
or greater than 90 percent of the recorded county yield 
indemnified at not greater than 100 percent of the expected 
market price, the amount shall be equal to the sum of— 
‘‘(i) 44 percent of the amount of the premium estab-
lished under subsection (d)(2)(B)(i) for the coverage 
level selected; and 
‘‘(ii) the amount determined under subsection 
(d)(2)(B)(ii) for the coverage level selected to cover oper-
ating and administrative expenses. 
‘‘(7) PREMIUM
SUBSIDY
FOR
AREA
YIELD
PLANS.—Subject 
to paragraph (4), in the case of a policy or plan of insurance 
that covers losses due to a loss of yield or prevented planting 
in an area, the amount of the premium paid by the Corporation 
shall be as follows: 
‘‘(A) In the case of additional area coverage equal to 
or greater than 70 percent, but less than 80 percent, of 
the recorded county yield indemnified at not greater than 
100 percent of the expected market price, the amount shall 
be equal to the sum of— 
‘‘(i) 59 percent of the amount of the premium estab-
lished under subsection (d)(2)(B)(i) for the coverage 
level selected; and 
‘‘(ii) the amount determined under subsection 
(d)(2)(B)(ii) for the coverage level selected to cover oper-
ating and administrative expenses. 
‘‘(B) In the case of additional area coverage equal to 
or greater than 80 percent, but less than 90 percent, of 
the recorded county yield indemnified at not greater than 
100 percent of the expected market price, the amount shall 
be equal to the sum of— 
‘‘(i) 55 percent of the amount of the premium estab-
lished under subsection (d)(2)(B)(i) for the coverage 
level selected; and 
‘‘(ii) the amount determined under subsection 
(d)(2)(B)(ii) for the coverage level selected to cover oper-
ating and administrative expenses. 
‘‘(C) In the case of additional area coverage equal to 
or greater than 90 percent, of the recorded county yield 
indemnified at not greater than 100 percent of the expected 
market price, the amount shall be equal to the sum of—
H. R. 6124—490 
‘‘(i) 51 percent of the amount of the premium estab-
lished under subsection (d)(2)(B)(i) for the coverage 
level selected; and 
‘‘(ii) the amount determined under subsection 
(d)(2)(B)(ii) for the coverage level selected to cover oper-
ating and administrative expenses.’’. 
SEC. 12013. DENIAL OF CLAIMS. 
Section 508(j)(2)(A) of the Federal Crop Insurance Act (7 U.S.C. 
1508(j)(2)(A)) is amended by inserting ‘‘on behalf of the Corporation’’ 
after ‘‘approved provider’’. 
SEC. 12014. SETTLEMENT OF CROP INSURANCE CLAIMS ON FARM- 
STORED PRODUCTION. 
(a) IN GENERAL.—Section 508(j) of the Federal Crop Insurance 
Act (7 U.S.C. 1508(j)) is amended by adding at the end the following: 
‘‘(5) SETTLEMENT
OF
CLAIMS
ON
FARM-STORED
PRODUC-
TION.—A producer with farm-stored production may, at the 
option of the producer, delay settlement of a crop insurance 
claim relating to the farm-stored production for up to 4 months 
after the last date on which claims may be submitted under 
the policy of insurance.’’. 
(b) STUDY ON THE EFFICACY OF PACK FACTORS.— 
(1) IN GENERAL.—The Secretary shall conduct a study of 
the efficacy and accuracy of the application of pack factors 
regarding the measurement of farm-stored production for pur-
poses of providing policies or plans of insurance under the 
Federal Crop Insurance Act (7 U.S.C. 1501 et seq.). 
(2) CONSIDERATIONS.—The study shall consider— 
(A) structural shape and size; 
(B) time in storage; 
(C) the impact of facility aeration systems; and 
(D) any other factors the Secretary considers appro-
priate. 
(3) REPORT.—Not later than 3 years after the date of enact-
ment of this Act, 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 
a report that includes the findings of the study and any related 
policy recommendations. 
SEC. 12015. TIME FOR REIMBURSEMENT. 
Section 508(k)(4) of the Federal Crop Insurance Act (7 U.S.C. 
1508(k)(4)) is amended by adding at the end the following: 
‘‘(D) TIME FOR REIMBURSEMENT.—Effective beginning 
with the 2012 reinsurance year, the Corporation shall 
reimburse approved insurance providers and agents for 
the allowable administrative and operating costs of the 
providers and agents as soon as practicable after October 
1 (but not later than October 31) after the reinsurance 
year for which reimbursements are earned.’’. 
SEC. 12016. REIMBURSEMENT RATE. 
Section 508(k)(4) of the Federal Crop Insurance Act (7 U.S.C. 
1508(k)(4)) (as amended by section 12015) is amended— 
(1) in subparagraph (A), by striking ‘‘Except as provided 
in subparagraph (B)’’ and inserting ‘‘Except as otherwise pro-
vided in this paragraph’’; and
H. R. 6124—491 
(2) by adding at the end the following: 
‘‘(E) REIMBURSEMENT RATE REDUCTION.—In the case 
of a policy of additional coverage that received a rate of 
reimbursement for administrative and operating costs for 
the 2008 reinsurance year, for each of the 2009 and subse-
quent reinsurance years, the reimbursement rate for 
administrative and operating costs shall be 2.3 percentage 
points below the rates in effect as of the date of enactment 
of the Food, Conservation, and Energy Act of 2008 for 
all crop insurance policies used to define loss ratio, except 
that only 1⁄2 of the reduction shall apply in a reinsurance 
year to the total premium written in a State in which 
the State loss ratio is greater than 1.2. 
‘‘(F) REIMBURSEMENT
RATE
FOR
AREA
POLICIES
AND 
PLANS OF INSURANCE.—Notwithstanding subparagraphs (A) 
through (E), for each of the 2009 and subsequent reinsur-
ance years, the reimbursement rate for area policies and 
plans of insurance widely available as of the date of enact-
ment of this subparagraph shall be 12 percent of the pre-
mium used to define loss ratio for that reinsurance year.’’. 
SEC. 12017. RENEGOTIATION OF STANDARD REINSURANCE AGREE-
MENT. 
Section 508(k) of the Federal Crop Insurance Act (7 U.S.C. 
1508(k)) is amended by adding at the end the following: 
‘‘(8) RENEGOTIATION
OF
STANDARD
REINSURANCE
AGREE-
MENT.— 
‘‘(A) IN GENERAL.—Except as provided in subparagraph 
(B), notwithstanding section 536 of the Agricultural 
Research, Extension, and Education Reform Act of 1998 
(7 U.S.C. 1506 note; Public Law 105–185) and section 148 
of the Agricultural Risk Protection Act of 2000 (7 U.S.C. 
1506 note; Public Law 106–224), the Corporation may 
renegotiate the financial terms and conditions of each 
Standard Reinsurance Agreement— 
‘‘(i) to be effective for the 2011 reinsurance year 
beginning July 1, 2010; and 
‘‘(ii) once during each period of 5 reinsurance years 
thereafter. 
‘‘(B) EXCEPTIONS.— 
‘‘(i) ADVERSE CIRCUMSTANCES.—Subject to clause 
(ii), subparagraph (A) shall not apply in any case in 
which the approved insurance providers, as a whole, 
experience unexpected adverse circumstances, as deter-
mined by the Secretary. 
‘‘(ii) EFFECT OF FEDERAL LAW CHANGES.—If Federal 
law is enacted after the date of enactment of this 
paragraph that requires revisions in the financial 
terms of the Standard Reinsurance Agreement, and 
changes in the Agreement are made on a mandatory 
basis by the Corporation, the changes shall not be 
considered to be a renegotiation of the Agreement for 
purposes of subparagraph (A). 
‘‘(C) NOTIFICATION REQUIREMENT.—If the Corporation 
renegotiates a Standard Reinsurance Agreement under 
subparagraph (A)(iii), the Corporation shall notify the Com-
mittee on Agriculture of the House of Representatives and
H. R. 6124—492 
the Committee on Agriculture, Nutrition, and Forestry of 
the Senate of the renegotiation. 
‘‘(D) CONSULTATION.—The approved insurance pro-
viders may confer with each other and collectively with 
the Corporation during any renegotiation under subpara-
graph (A). 
‘‘(E) 2011 REINSURANCE YEAR.— 
‘‘(i) IN GENERAL.—As part of the Standard Reinsur-
ance 
Agreement 
renegotiation 
authorized 
under 
subparagraph (A)(i), the Corporation shall consider 
alternative methods to determine reimbursement rates 
for administrative and operating costs. 
‘‘(ii) ALTERNATIVE METHODS.—Alternatives consid-
ered under clause (i) shall include— 
‘‘(I) methods that— 
‘‘(aa) are graduated and base reimburse-
ment rates in a State on changes in premiums 
in that State; 
‘‘(bb) are graduated and base reimburse-
ment rates in a State on the loss ratio for 
crop insurance for that State; and 
‘‘(cc) are graduated and base reimburse-
ment rates on individual policies on the level 
of total premium for each policy; and 
‘‘(II) any other method that takes into account 
current financial conditions of the program and 
ensures continued availability of the program to 
producers on a nationwide basis.’’. 
SEC. 12018. CHANGE IN DUE DATE FOR CORPORATION PAYMENTS FOR 
UNDERWRITING GAINS. 
Section 508(k) of the Federal Crop Insurance Act (7 U.S.C. 
1508(k)) (as amended by section 12017) is amended by adding 
at the end the following: 
‘‘(9) DUE DATE FOR PAYMENT OF UNDERWRITING GAINS.— 
Effective beginning with the 2011 reinsurance year, the Cor-
poration shall make payments for underwriting gains under 
this title on— 
‘‘(A) for the 2011 reinsurance year, October 1, 2012; 
and 
‘‘(B) for each reinsurance year thereafter, October 1 
of the following calendar year.’’. 
SEC. 12019. MALTING BARLEY. 
Section 508(m) of the Federal Crop Insurance Act (7 U.S.C. 
1508(m)) is amended by adding at the end the following: 
‘‘(5) SPECIAL PROVISIONS FOR MALTING BARLEY.—The Cor-
poration shall promulgate special provisions under this sub-
section specific to malting barley, taking into consideration 
any changes in quality factors, as required by applicable market 
conditions.’’. 
SEC. 12020. CROP PRODUCTION ON NATIVE SOD. 
(a) FEDERAL CROP INSURANCE.—Section 508 of the Federal 
Crop Insurance Act (7 U.S.C. 1508) is amended by adding at the 
end the following: 
‘‘(o) CROP PRODUCTION ON NATIVE SOD.—
H. R. 6124—493 
‘‘(1) DEFINITION OF NATIVE SOD.—In this subsection, the 
term ‘native sod’ means land— 
‘‘(A) on which the plant cover is composed principally 
of native grasses, grasslike plants, forbs, or shrubs suitable 
for grazing and browsing; and 
‘‘(B) that has never been tilled for the production of 
an annual crop as of the date of enactment of this sub-
section. 
‘‘(2) INELIGIBILITY FOR BENEFITS.— 
‘‘(A) IN GENERAL.—Subject to subparagraph (B) and 
paragraph (3), native sod acreage that has been tilled for 
the production of an annual crop after the date of enact-
ment of this subsection shall be ineligible during the first 
5 crop years of planting, as determined by the Secretary, 
for benefits under— 
‘‘(i) this title; and 
‘‘(ii) section 196 of the Federal Agriculture 
Improvement and Reform Act of 1996 (7 U.S.C. 7333). 
‘‘(B) DE MINIMIS ACREAGE EXEMPTION.—The Secretary 
shall exempt areas of 5 acres or less from subparagraph 
(A). 
‘‘(3) APPLICATION.—Paragraph (2) may apply to native sod 
acreage in the Prairie Pothole National Priority Area at the 
election of the Governor of the respective State.’’. 
(b) NONINSURED CROP DISASTER ASSISTANCE.—Section 196(a) 
of the Federal Agriculture Improvement and Reform Act of 1996 
(7 U.S.C. 7333(a)) is amended by adding at the end the following: 
‘‘(4) PROGRAM INELIGIBILITY RELATING TO CROP PRODUCTION 
ON NATIVE SOD.— 
‘‘(A) DEFINITION OF NATIVE SOD.—In this paragraph, 
the term ‘native sod’ means land— 
‘‘(i) on which the plant cover is composed prin-
cipally of native grasses, grasslike plants, forbs, or 
shrubs suitable for grazing and browsing; and 
‘‘(ii) that has never been tilled for the production 
of an annual crop as of the date of enactment of this 
paragraph. 
‘‘(B) INELIGIBILITY FOR BENEFITS.— 
‘‘(i) IN
GENERAL.—Subject to clause (ii) and 
subparagraph (C), native sod acreage that has been 
tilled for the production of an annual crop after the 
date of enactment of this paragraph shall be ineligible 
during the first 5 crop years of planting, as determined 
by the Secretary, for benefits under— 
‘‘(I) this section; and 
‘‘(II) the Federal Crop Insurance Act (7 U.S.C. 
1501 et seq.). 
‘‘(ii) DE MINIMIS ACREAGE EXEMPTION.—The Sec-
retary shall exempt areas of 5 acres or less from clause 
(i). 
‘‘(C) APPLICATION.—Subparagraph (B) may apply to 
native sod acreage in the Prairie Pothole National Priority 
Area at the election of the Governor of the respective 
State.’’.
H. R. 6124—494 
SEC. 12021. INFORMATION MANAGEMENT. 
Section 515 of the Federal Crop Insurance Act (7 U.S.C. 1515) 
is amended— 
(a) in subsection (j)(3), by adding before the period at the 
end the following: ‘‘, which shall be subject to competition on a 
periodic basis, as determined by the Secretary’’; and 
(b) by striking subsection (k) and inserting the following: 
‘‘(k) FUNDING.— 
‘‘(1) INFORMATION TECHNOLOGY.—To carry out subsection 
(j)(1), the Corporation may use, from amounts made available 
from the insurance fund established under section 516(c), not 
more than $15,000,000 for each of fiscal years 2008 through 
2011. 
‘‘(2) DATA MINING.—To carry out subsection (j)(2), the Cor-
poration may use, from amounts made available from the insur-
ance fund established under section 516(c), not more than 
$4,000,000 for fiscal year 2009 and each subsequent fiscal 
year.’’. 
SEC. 12022. RESEARCH AND DEVELOPMENT. 
(a) IN GENERAL.—Section 522(b) of the Federal Crop Insurance 
Act (7 U.S.C. 1522(b)) is amended by striking paragraphs (1) and 
(2) and inserting the following: 
‘‘(1) RESEARCH AND DEVELOPMENT PAYMENT.— 
‘‘(A) IN
GENERAL.—The Corporation shall provide a 
payment to an applicant for research and development 
costs in accordance with this subsection. 
‘‘(B) REIMBURSEMENT.—An applicant who submits a 
policy under section 508(h) shall be eligible for the 
reimbursement of reasonable research and development 
costs directly related to the policy if the policy is approved 
by the Board for sale to producers. 
‘‘(2) ADVANCE PAYMENTS.— 
‘‘(A) IN GENERAL.—Subject to the other provisions of 
this paragraph, the Board may approve the request of 
an applicant for advance payment of a portion of reasonable 
research and development costs prior to submission and 
approval of the policy by the Board under section 508(h). 
‘‘(B) PROCEDURES.—The Board shall establish proce-
dures for approving advance payment of reasonable 
research and development costs to applicants. 
‘‘(C) CONCEPT PROPOSAL.—As a condition of eligibility 
for advance payments, an applicant shall submit a concept 
proposal for the policy that the applicant plans to submit 
to the Board under section 508(h), consistent with proce-
dures established by the Board for submissions under 
subparagraph (B), including— 
‘‘(i) a summary of the qualifications of the 
applicant, including any prior concept proposals and 
submissions to the Board under section 508(h) and, 
if applicable, any work conducted under this section; 
‘‘(ii) a projection of total research and development 
costs that the applicant expects to incur; 
‘‘(iii) a description of the need for the policy, the 
marketability of and expected demand for the policy 
among affected producers, and the potential impact
H. R. 6124—495 
of the policy on producers and the crop insurance 
delivery system; 
‘‘(iv) a summary of data sources available to dem-
onstrate that the policy can reasonably be developed 
and actuarially appropriate rates established; and 
‘‘(v) an identification of the risks the proposed 
policy will cover and an explanation of how the identi-
fied risks are insurable under this title. 
‘‘(D) REVIEW.— 
‘‘(i) EXPERTS.—If the requirements of subpara-
graph (B) and (C) are met, the Board may submit 
a concept proposal described in subparagraph (C) to 
not less than 2 independent expert reviewers, whose 
services are appropriate for the type of concept proposal 
submitted, to assess the likelihood that the proposed 
policy being developed will result in a viable and 
marketable policy, as determined by the Board. 
‘‘(ii) TIMING.—The time frames described in sub-
paragraphs (C) and (D) of section 508(h)(4) shall apply 
to the review of concept proposals under this subpara-
graph. 
‘‘(E) APPROVAL.—The Board may approve up to 50 per-
cent of the projected total research and development costs 
to be paid in advance to an applicant, in accordance with 
the procedures developed by the Board for the making 
of such payments, if, after consideration of the reviewer 
reports described in subparagraph (D) and such other 
information as the Board determines appropriate, the 
Board determines that— 
‘‘(i) the concept, in good faith, will likely result 
in a viable and marketable policy consistent with sec-
tion 508(h); 
‘‘(ii) in the sole opinion of the Board, the concept, 
if developed into a policy and approved by the Board, 
would provide crop insurance coverage— 
‘‘(I) in a significantly improved form; 
‘‘(II) to a crop or region not traditionally served 
by the Federal crop insurance program; or 
‘‘(III) in a form that addresses a recognized 
flaw or problem in the program; 
‘‘(iii) the applicant agrees to provide such reports 
as the Corporation determines are necessary to monitor 
the development effort; 
‘‘(iv) the proposed budget and timetable are reason-
able; and 
‘‘(v) the concept proposal meets any other require-
ments that the Board determines appropriate. 
‘‘(F) SUBMISSION OF POLICY.—If the Board approves 
an advanced payment under subparagraph (E), the Board 
shall establish a date by which the applicant shall present 
a submission in compliance with section 508(h) (including 
the procedures implemented under that section) to the 
Board for approval. 
‘‘(G) FINAL PAYMENT.— 
‘‘(i) APPROVED POLICIES.—If a policy is submitted 
under subparagraph (F) and approved by the Board 
under section 508(h) and the procedures established
H. R. 6124—496 
by the Board (including procedures established under 
subparagraph (B)), the applicant shall be eligible for 
a payment of reasonable research and development 
costs in the same manner as policies reimbursed under 
paragraph (1)(B), less any payments made pursuant 
to subparagraph (E). 
‘‘(ii) POLICIES NOT APPROVED.—If a policy is sub-
mitted under subparagraph (F) and is not approved 
by the Board under section 508(h), the Corporation 
shall— 
‘‘(I) not seek a refund of any payments made 
in accordance with this paragraph; and 
‘‘(II) not make any further research and 
development cost payments associated with the 
submission of the policy under this paragraph. 
‘‘(H) POLICY NOT SUBMITTED.—If an applicant receives 
an advance payment and fails to fulfill the obligation of 
the applicant to the Board by not submitting a completed 
submission without just cause and in accordance with the 
procedures established under subparagraph (B)), including 
notice and reasonable opportunity to respond, as deter-
mined by the Board, the applicant shall return to the 
Board the amount of the advance plus interest. 
‘‘(I) REPEATED SUBMISSIONS.—The Board may prohibit 
advance payments to applicants who have submitted— 
‘‘(i) a concept proposal or submission that did not 
result in a marketable product; or 
‘‘(ii) a concept proposal or submission of poor 
quality. 
‘‘(J) CONTINUED ELIGIBILITY.—A determination that an 
applicant is not eligible for advance payments under this 
paragraph shall not prevent an applicant from reimburse-
ment under paragraph (1)(B).’’. 
(b) CONFORMING AMENDMENTS.—Section 522(b) of the Federal 
Crop Insurance Act (7 U.S.C. 1522(b)) is amended— 
(1) in paragraph (3), by striking ‘‘or (2)’’; and 
(2) in paragraph (4)(A), by striking ‘‘and (2)’’.’’ 
SEC. 12023. CONTRACTS FOR ADDITIONAL POLICIES AND STUDIES. 
Section 522(c) of the Federal Crop Insurance Act (7 U.S.C. 
1522) is amended— 
(1) by redesignating paragraph (10) as paragraph (17); 
and 
(2) by inserting after paragraph (9) the following: 
‘‘(10) CONTRACTS
FOR
ORGANIC
PRODUCTION
COVERAGE 
IMPROVEMENTS.— 
‘‘(A) CONTRACTS REQUIRED.—Not later than 180 days 
after the date of enactment of the Food, Conservation, 
and Energy Act of 2008, the Corporation shall enter into 
1 or more contracts for the development of improvements 
in Federal crop insurance policies covering crops produced 
in compliance with standards issued by the Department 
of Agriculture under the national organic program estab-
lished under the Organic Foods Production Act of 1990 
(7 U.S.C. 6501 et seq.). 
‘‘(B) REVIEW OF UNDERWRITING RISK AND LOSS EXPERI-
ENCE.—
H. R. 6124—497 
‘‘(i) REVIEW REQUIRED.— 
‘‘(I) IN GENERAL.—A contract under subpara-
graph (A) shall include a review of the under-
writing, risk, and loss experience of organic crops 
covered by the Corporation, as compared with the 
same crops produced in the same counties and 
during the same crop years using nonorganic 
methods. 
‘‘(II) REQUIREMENTS.—The review shall— 
‘‘(aa) to the maximum extent practicable, 
be designed to allow the Corporation to deter-
mine whether significant, consistent, or sys-
temic variations in loss history exist between 
organic and nonorganic production; 
‘‘(bb) include the widest available range 
of data collected by the Secretary and other 
outside sources of information; and 
‘‘(cc) not be limited to loss history under 
existing crop insurance policies. 
‘‘(ii) EFFECT ON PREMIUM SURCHARGE.—Unless the 
review under this subparagraph documents the exist-
ence of significant, consistent, and systemic variations 
in loss history between organic and nonorganic crops, 
either collectively or on an individual crop basis, the 
Corporation shall eliminate or reduce the premium 
surcharge that the Corporation charges for coverage 
for organic crops, as determined in accordance with 
the results. 
‘‘(iii) ANNUAL UPDATES.—Beginning with the 2009 
crop year, the review under this subparagraph shall 
be updated on an annual basis as data is accumulated 
by the Secretary and other sources, so that the Cor-
poration may make determinations regarding adjust-
ments to the surcharge in a timely manner as quickly 
as evolving practices and data trends allow. 
‘‘(C) ADDITIONAL PRICE ELECTION.— 
‘‘(i) IN GENERAL.—A contract under subparagraph 
(A) shall include the development of a procedure, 
including any associated changes in policy terms or 
materials required for implementation of the proce-
dure, to offer producers of organic crops an additional 
price election that reflects actual prices received by 
organic producers for crops from the field (including 
appropriate retail and wholesale prices), as established 
using data collected and maintained by the Secretary 
or from other sources. 
‘‘(ii) TIMING.—The development of the procedure 
shall be completed in a timely manner to allow the 
Corporation to begin offering the additional price elec-
tion for organic crops with sufficient data for the 2010 
crop year. 
‘‘(iii) 
EXPANSION.—The 
procedure 
shall 
be 
expanded as quickly as practicable as additional data 
on prices of organic crops collected by the Secretary 
and other sources of information becomes available, 
with a goal of applying this procedure to all organic 
crops not later than the fifth full crop year that begins
H. R. 6124—498 
after the date of enactment of Food, Conservation, 
and Energy Act of 2008. 
‘‘(D) REPORTING REQUIREMENTS.— 
‘‘(i) IN
GENERAL.—The Corporation shall submit 
to the Committee on Agriculture of the House of Rep-
resentatives and the Committee on Agriculture, Nutri-
tion, and Forestry of the Senate an annual report 
on progress made in developing and improving Federal 
crop insurance for organic crops, including— 
‘‘(I) the numbers and varieties of organic crops 
insured; 
‘‘(II) the development of new insurance 
approaches; and 
‘‘(III) the progress of implementing the initia-
tives required under this paragraph, including the 
rate at which additional price elections are adopted 
for organic crops. 
‘‘(ii) RECOMMENDATIONS.—The report shall include 
such recommendations as the Corporation considers 
appropriate to improve Federal crop insurance cov-
erage for organic crops. 
‘‘(11) ENERGY CROP INSURANCE POLICY.— 
‘‘(A) DEFINITION OF DEDICATED ENERGY CROP.—In this 
subsection, the term ‘dedicated energy crop’ means an 
annual or perennial crop that— 
‘‘(i) is grown expressly for the purpose of producing 
a feedstock for renewable biofuel, renewable electricity, 
or biobased products; and 
‘‘(ii) is not typically used for food, feed, or fiber. 
‘‘(B) AUTHORITY.—The Corporation shall offer to enter 
into 1 or more contracts with qualified entities to carry 
out research and development regarding a policy to insure 
dedicated energy crops. 
‘‘(C) RESEARCH
AND
DEVELOPMENT.—Research and 
development described in subparagraph (B) shall evaluate 
the effectiveness of risk management tools for the produc-
tion of dedicated energy crops, including policies and plans 
of insurance that— 
‘‘(i) are based on market prices and yields; 
‘‘(ii) to the extent that insufficient data exist to 
develop a policy based on market prices and yields, 
evaluate the policies and plans of insurance based 
on the use of weather or rainfall indices to protect 
the interests of crop producers; and 
‘‘(iii) provide protection for production or revenue 
losses, or both. 
‘‘(12) AQUACULTURE INSURANCE POLICY.— 
‘‘(A) DEFINITION OF AQUACULTURE.—In this subsection: 
‘‘(i) IN GENERAL.—The term ‘aquaculture’ means 
the propagation and rearing of aquatic species in con-
trolled or selected environments, including shellfish 
cultivation on grants or leased bottom and ocean 
ranching. 
‘‘(ii) EXCLUSION.—The term ‘aquaculture’ does not 
include the private ocean ranching of Pacific salmon 
for profit in any State in which private ocean ranching
H. R. 6124—499 
of Pacific salmon is prohibited by any law (including 
regulations). 
‘‘(B) AUTHORITY.— 
‘‘(i) IN GENERAL.—As soon as practicable after the 
date of enactment of the Food, Conservation, and 
Energy Act of 2008, the Corporation shall offer to 
enter into 3 or more contracts with qualified entities 
to carry out research and development regarding a 
policy to insure the production of aquacultural species 
in aquaculture operations. 
‘‘(ii) BIVALVE SPECIES.—At least 1 of the contracts 
described in clause (i) shall address insurance of 
bivalve species, including— 
‘‘(I) American oysters (crassostrea virginica); 
‘‘(II) hard clams (mercenaria mercenaria); 
‘‘(III) Pacific oysters (crassostrea gigas); 
‘‘(IV) Manila clams (tapes phillipinnarium); or 
‘‘(V) blue mussels (mytilus edulis). 
‘‘(iii) FRESHWATER SPECIES.—At least 1 of the con-
tracts described in clause (i) shall address insurance 
of freshwater species, including— 
‘‘(I) catfish (icataluridae); 
‘‘(II) rainbow trout (oncorhynchus mykiss); 
‘‘(III) 
largemouth 
bass 
(micropterus 
salmoides); 
‘‘(IV) striped bass (morone saxatilis); 
‘‘(V) bream (abramis brama); 
‘‘(VI) shrimp (penaeus); or 
‘‘(VII) tilapia (oreochromis niloticus). 
‘‘(iv) SALTWATER SPECIES.—At least 1 of the con-
tracts described in clause (i) shall address insurance 
of saltwater species, including— 
‘‘(I) Atlantic salmon (salmo salar); or 
‘‘(II) shrimp (penaeus). 
‘‘(C) RESEARCH
AND
DEVELOPMENT.—Research and 
development described in subparagraph (B) shall evaluate 
the effectiveness of policies and plans of insurance for 
the production of aquacultural species in aquaculture oper-
ations, including policies and plans of insurance that— 
‘‘(i) are based on market prices and yields; 
‘‘(ii) to the extent that insufficient data exist to 
develop a policy based on market prices and yields, 
evaluate how best to incorporate insuring of production 
of aquacultural species in aquaculture operations into 
existing policies covering adjusted gross revenue; and 
‘‘(iii) provide protection for production or revenue 
losses, or both. 
‘‘(13) POULTRY INSURANCE POLICY.— 
‘‘(A) DEFINITION OF POULTRY.—In this paragraph, the 
term ‘poultry’ has the meaning given the term in section 
2(a) of the Packers and Stockyards Act, 1921 (7 U.S.C. 
182(a)). 
‘‘(B) AUTHORITY.—The Corporation shall offer to enter 
into 1 or more contracts with qualified entities to carry 
out research and development regarding a policy to insure 
commercial poultry production.
H. R. 6124—500 
‘‘(C) RESEARCH
AND
DEVELOPMENT.—Research and 
development described in subparagraph (B) shall evaluate 
the effectiveness of risk management tools for the produc-
tion of poultry, including policies and plans of insurance 
that provide protection for production or revenue losses, 
or both, while the poultry is in production. 
‘‘(14) APIARY POLICIES.—The Corporation shall offer to enter 
into a contract with a qualified entity to carry out research 
and development regarding insurance policies that cover loss 
of bees. 
‘‘(15) ADJUSTED GROSS REVENUE POLICIES FOR BEGINNING 
PRODUCERS.—The Corporation shall offer to enter into a con-
tract with a qualified entity to carry out research and develop-
ment into needed modifications of adjusted gross revenue insur-
ance policies, consistent with principles of actuarial sufficiency, 
to permit coverage for beginning producers with no previous 
production history, including permitting those producers to 
have production and premium rates based on information with 
similar farming operations. 
‘‘(16) SKIPROW CROPPING PRACTICES.— 
‘‘(A) IN GENERAL.—The Corporation shall offer to enter 
into a contract with a qualified entity to carry out research 
into needed modifications of policies to insure corn and 
sorghum produced in the Central Great Plains (as deter-
mined by the Agricultural Research Service) through use 
of skiprow cropping practices. 
‘‘(B) RESEARCH.—Research described in subparagraph 
(A) shall— 
‘‘(i) review existing research on skiprow cropping 
practices and actual production history of producers 
using skiprow cropping practices; and 
‘‘(ii) evaluate the effectiveness of risk management 
tools for producers using skiprow cropping practices, 
including— 
‘‘(I) the appropriateness of rules in existence 
as of the date of enactment of this paragraph 
relating to the determination of acreage planted 
in skiprow patterns; and 
‘‘(II) whether policies for crops produced 
through skiprow cropping practices reflect actual 
production capabilities.’’. 
SEC. 12024. FUNDING FROM INSURANCE FUND. 
Section 522(e) of the Federal Crop Insurance Act (7 U.S.C. 
1522(e)) is amended— 
(1) in paragraph (1), by striking ‘‘$10,000,000’’ and all 
that follows through the end of the paragraph and inserting 
‘‘$7,500,000 for fiscal year 2008 and each subsequent fiscal 
year’’; 
(2) in paragraph (2)(A), by striking ‘‘$20,000,000 for’’ and 
all that follows through ‘‘year 2004’’ and inserting ‘‘$12,500,000 
for fiscal year 2008’’; and 
(3) in paragraph (3), by striking ‘‘the Corporation may 
use’’ and all that follows through the end of the paragraph 
and inserting ‘‘the Corporation may use— 
‘‘(A) not more than $5,000,000 for each fiscal year 
to improve program integrity, including by—
H. R. 6124—501 
‘‘(i) increasing compliance-related training; 
‘‘(ii) improving analysis tools and technology 
regarding compliance; 
‘‘(iii) use of information technology, as determined 
by the Corporation; and 
‘‘(iv) identifying and using innovative compliance 
strategies; and 
‘‘(B) any excess amounts to carry out other activities 
authorized under this section.’’. 
SEC. 12025. PILOT PROGRAMS. 
(a) IN GENERAL.—Section 523 of the Federal Crop Insurance 
Act (7 U.S.C. 1523) is amended by adding at the end the following: 
‘‘(f) CAMELINA PILOT PROGRAM.— 
‘‘(1) IN GENERAL.—The Corporation shall establish a pilot 
program under which producers or processors of camelina may 
propose for approval by the Board policies or plans of insurance 
for camelina, in accordance with section 508(h). 
‘‘(2) DETERMINATION BY BOARD.—The Board shall approve 
a policy or plan of insurance proposed under paragraph (1) 
if, as determined by the Board, the policy or plan of insurance— 
‘‘(A) protects the interests of producers; 
‘‘(B) is actuarially sound; and 
‘‘(C) meets the requirements of this title. 
‘‘(3) TIMEFRAME.—The Corporation shall commence the 
camelina insurance pilot program as soon as practicable after 
the date of enactment of this subsection. 
‘‘(g) SESAME INSURANCE PILOT PROGRAM.— 
‘‘(1) IN GENERAL.—In addition to any other authority of 
the Corporation, the Corporation shall establish and carry out 
a pilot program under which a producer of nondehiscent sesame 
under contract may elect to obtain multiperil crop insurance, 
as determined by the Corporation. 
‘‘(2) TERMS AND CONDITIONS.—The multiperil crop insur-
ance offered under the sesame insurance pilot program shall— 
‘‘(A) be offered through reinsurance arrangements with 
private insurance companies; 
‘‘(B) be actuarially sound; and 
‘‘(C) require the payment of premiums and administra-
tive fees by a producer obtaining the insurance. 
‘‘(3) LOCATION.—The sesame insurance pilot program shall 
be carried out only in the State of Texas. 
‘‘(4) DURATION.—The Corporation shall commence the 
sesame insurance pilot program as soon as practicable after 
the date of the enactment of this subsection. 
‘‘(h) GRASS SEED INSURANCE PILOT PROGRAM.— 
‘‘(1) IN GENERAL.—In addition to any other authority of 
the Corporation, the Corporation shall establish and carry out 
a grass seed pilot program under which a producer of Kentucky 
bluegrass or perennial rye grass under contract may elect to 
obtain multiperil crop insurance, as determined by the Corpora-
tion. 
‘‘(2) TERMS AND CONDITIONS.—The multiperil crop insur-
ance offered under the grass seed insurance pilot program 
shall— 
‘‘(A) be offered through reinsurance arrangements with 
private insurance companies;
H. R. 6124—502 
‘‘(B) be actuarially sound; and 
‘‘(C) require the payment of premiums and administra-
tive fees by a producer obtaining the insurance. 
‘‘(3) LOCATION.—The grass seed insurance pilot program 
shall be carried out only in each of the States of Minnesota 
and North Dakota. 
‘‘(4) DURATION.—The Corporation shall commence the grass 
seed insurance pilot program as soon as practicable after the 
date of the enactment of this subsection.’’. 
(b) CONFORMING AMENDMENT.—Section 196(a)(2)(B) of the Fed-
eral Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 
7333(a)(2)(B)) is amended by adding ‘‘camelina,’’ after ‘‘sea oats,’’. 
SEC. 
12026. 
RISK 
MANAGEMENT 
EDUCATION 
FOR 
BEGINNING 
FARMERS OR RANCHERS. 
Section 524(a) of the Federal Crop Insurance Act (7 U.S.C. 
1524(a)) is amended— 
(1) in paragraph (1), by striking ‘‘paragraph (4)’’ and 
inserting ‘‘paragraph (5)’’; 
(2) by redesignating paragraph (4) as paragraph (5); and 
(3) by inserting after paragraph (3) the following: 
‘‘(4) REQUIREMENTS.—In carrying out the programs estab-
lished under paragraphs (2) and (3), the Secretary shall place 
special emphasis on risk management strategies, education, 
and outreach specifically targeted at— 
‘‘(A) beginning farmers or ranchers; 
‘‘(B) legal immigrant farmers or ranchers that are 
attempting to become established producers in the United 
States; 
‘‘(C) socially disadvantaged farmers or ranchers; 
‘‘(D) farmers or ranchers that— 
‘‘(i) are preparing to retire; and 
‘‘(ii) are using transition strategies to help new 
farmers or ranchers get started; and 
‘‘(E) new or established farmers or ranchers that are 
converting production and marketing systems to pursue 
new markets.’’. 
SEC. 12027. COVERAGE FOR AQUACULTURE UNDER NONINSURED 
CROP ASSISTANCE PROGRAM. 
Section 196(c)(2) of the Federal Agriculture Improvement and 
Reform Act of 1996 (7 U.S.C. 7333(c)(2)) is amended— 
(1) by striking ‘‘On making’’ and inserting the following: 
‘‘(A) IN GENERAL.—On making’’; and 
(2) by adding at the end the following: 
‘‘(B) AQUACULTURE PRODUCERS.—On making a deter-
mination described in subsection (a)(3) for aquaculture pro-
ducers, the Secretary shall provide assistance under this 
section to aquaculture producers from all losses related 
to drought.’’. 
SEC. 12028. INCREASE IN SERVICE FEES FOR NONINSURED CROP 
ASSISTANCE PROGRAM. 
Section 196(k)(1) of the Federal Agriculture Improvement and 
Reform Act of 1996 (7 U.S.C. 7333(k)(1)) is amended— 
(1) in subparagraph (A), by striking ‘‘$100’’ and inserting 
‘‘$250’’; and 
(2) in subparagraph (B)—
H. R. 6124—503 
(A) by striking ‘‘$300’’ and inserting ‘‘$750’’; and 
(B) by striking ‘‘$900’’ and inserting ‘‘$1,875’’. 
SEC. 12029. DETERMINATION OF CERTAIN SWEET POTATO PRODUC-
TION. 
Section 9001(d) of the U.S. Troop Readiness, Veterans’ Care, 
Katrina Recovery, and Iraq Accountability Appropriations Act, 2007 
(Public Law 110–28; 121 Stat. 211) is amended— 
(1) by redesignating paragraph (8) as paragraph (9); and 
(2) by inserting after paragraph (7) the following: 
‘‘(8) SWEET POTATOES.— 
‘‘(A) DATA.—In the case of sweet potatoes, any data 
obtained under a pilot program carried out by the Risk 
Management Agency shall not be considered for the pur-
pose of determining the quantity of production under the 
crop disaster assistance program established under this 
section. 
‘‘(B) EXTENSION
OF
DEADLINE.—If this paragraph is 
not implemented before the sign-up deadline for the crop 
disaster assistance program established under this section, 
the Secretary shall extend the deadline for producers of 
sweet potatoes to permit sign-up for the program in accord-
ance with this paragraph.’’. 
SEC. 12030. DECLINING YIELD REPORT. 
Not later than 180 days after the date of enactment of this 
Act, 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 containing details 
about activities and administrative options of the Federal Crop 
Insurance Corporation and Risk Management Agency that address 
issues relating to— 
(1) declining yields on the actual production histories of 
producers; and 
(2) declining and variable yields for perennial crops, 
including pecans. 
SEC. 12031. DEFINITION OF BASIC UNIT. 
The Secretary shall not modify the definition of ‘‘basic unit’’ 
in accordance with the proposed regulations entitled ‘‘Common Crop 
Insurance Regulations’’ (72 Fed. Reg. 28895; relating to common 
crop insurance regulations) or any successor regulation. 
SEC. 12032. CROP INSURANCE MEDIATION. 
Section 275 of the Department of Agriculture Reorganization 
Act of 1994 (7 U.S.C. 6995) is amended— 
(1) by striking ‘‘If an officer’’ and inserting the following: 
‘‘(a) IN GENERAL.—If an officer’’; 
(2) by striking ‘‘With respect to’’ and inserting the following: 
‘‘(b) FARM SERVICE AGENCY.—With respect to’’; 
(3) by striking ‘‘If a mediation’’; and inserting the following: 
‘‘(c) MEDIATION.—If a mediation’’; and 
(4) in subsection (c) (as so designated)— 
(A) by striking ‘‘participant shall be offered’’ and 
inserting ‘‘participant shall— 
‘‘(1) be offered’’; and 
(B) by striking the period at the end and inserting 
the following: ‘‘; and
H. R. 6124—504 
‘‘(2) to the maximum extent practicable, be allowed to use 
both informal agency review and mediation to resolve disputes 
under that title.’’. 
SEC. 12033. SUPPLEMENTAL AGRICULTURAL DISASTER ASSISTANCE. 
(a) IN GENERAL.—The Federal Crop Insurance Act (7 U.S.C. 
1501 et seq.) is amended by adding at the end the following: 
‘‘Subtitle B—Supplemental Agricultural 
Disaster Assistance 
‘‘SEC. 531. SUPPLEMENTAL AGRICULTURAL DISASTER ASSISTANCE. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) ACTUAL PRODUCTION HISTORY YIELD.—The term ‘actual 
production history yield’ means the weighted average of the 
actual production history for each insurable commodity or non-
insurable commodity, as calculated under subtitle A or the 
noninsured crop disaster assistance program, respectively. 
‘‘(2) ADJUSTED ACTUAL PRODUCTION HISTORY YIELD.—The 
term ‘adjusted actual production history yield’ means— 
‘‘(A) in the case of an eligible producer on a farm 
that has at least 4 years of actual production history yields 
for an insurable commodity that are established other than 
pursuant to section 508(g)(4)(B), the actual production his-
tory for the eligible producer without regard to any yields 
established under that section; 
‘‘(B) in the case of an eligible producer on a farm 
that has less than 4 years of actual production history 
yields for an insurable commodity, of which 1 or more 
were established pursuant to section 508(g)(4)(B), the 
actual production history for the eligible producer as cal-
culated without including the lowest of the yields estab-
lished pursuant to section 508(g)(4)(B); and 
‘‘(C) in all other cases, the actual production history 
of the eligible producer on a farm. 
‘‘(3) ADJUSTED NONINSURED CROP DISASTER ASSISTANCE PRO-
GRAM
YIELD.—The term ‘adjusted noninsured crop disaster 
assistance program yield’ means— 
‘‘(A) in the case of an eligible producer on a farm 
that has at least 4 years of production history under the 
noninsured crop disaster assistance program that are not 
replacement yields, the noninsured crop disaster assistance 
program yield without regard to any replacement yields; 
‘‘(B) in the case of an eligible producer on a farm 
that less than 4 years of production history under the 
noninsured crop disaster assistance program that are not 
replacement yields, the noninsured crop disaster assistance 
program yield as calculated without including the lowest 
of the replacement yields; and 
‘‘(C) in all other cases, the production history of the 
eligible producer on the farm under the noninsured crop 
disaster assistance program. 
‘‘(4) COUNTER-CYCLICAL
PROGRAM
PAYMENT
YIELD.—The 
term ‘counter-cyclical program payment yield’ means the 
weighted average payment yield established under section 1102 
of the Farm Security and Rural Investment Act of 2002 (7
H. R. 6124—505 
U.S.C. 7912), section 1102 of the Food, Conservation, and 
Energy Act of 2008, or a successor section. 
‘‘(5) DISASTER COUNTY.— 
‘‘(A) IN GENERAL.—The term ‘disaster county’ means 
a county included in the geographic area covered by a 
qualifying natural disaster declaration. 
‘‘(B) INCLUSION.—The term ‘disaster county’ includes— 
‘‘(i) a county contiguous to a county described in 
subparagraph (A); and 
‘‘(ii) any farm in which, during a calendar year, 
the total loss of production of the farm relating to 
weather is greater than 50 percent of the normal 
production of the farm, as determined by the Secretary. 
‘‘(6) ELIGIBLE PRODUCER ON A FARM.— 
‘‘(A) IN GENERAL.—The term ‘eligible producer on a 
farm’ means an individual or entity described in subpara-
graph (B) that, as determined by the Secretary, assumes 
the production and market risks associated with the agri-
cultural production of crops or livestock. 
‘‘(B) DESCRIPTION.—An individual or entity referred 
to in subparagraph (A) is— 
‘‘(i) a citizen of the United States; 
‘‘(ii) a resident alien; 
‘‘(iii) a partnership of citizens of the United States; 
or 
‘‘(iv) a corporation, limited liability corporation, or 
other farm organizational structure organized under 
State law. 
‘‘(7) FARM.— 
‘‘(A) IN GENERAL.—The term ‘farm’ means, in relation 
to an eligible producer on a farm, the sum of all crop 
acreage in all counties that is planted or intended to be 
planted for harvest by the eligible producer. 
‘‘(B) AQUACULTURE.—In the case of aquaculture, the 
term ‘farm’ means, in relation to an eligible producer on 
a farm, all fish being produced in all counties that are 
intended to be harvested for sale by the eligible producer. 
‘‘(C) HONEY.—In the case of honey, the term ‘farm’ 
means, in relation to an eligible producer on a farm, all 
bees and beehives in all counties that are intended to 
be harvested for a honey crop by the eligible producer. 
‘‘(8) FARM-RAISED FISH.—The term ‘farm-raised fish’ means 
any aquatic species that is propagated and reared in a con-
trolled environment. 
‘‘(9) INSURABLE
COMMODITY.—The term ‘insurable com-
modity’ means an agricultural commodity (excluding livestock) 
for which the producer on a farm is eligible to obtain a policy 
or plan of insurance under subtitle A. 
‘‘(10) LIVESTOCK.—The term ‘livestock’ includes— 
‘‘(A) cattle (including dairy cattle); 
‘‘(B) bison; 
‘‘(C) poultry; 
‘‘(D) sheep; 
‘‘(E) swine; 
‘‘(F) horses; and 
‘‘(G) other livestock, as determined by the Secretary.
H. R. 6124—506 
‘‘(11) NONINSURABLE COMMODITY.—The term ‘noninsurable 
commodity’ means a crop for which the eligible producers on 
a farm are eligible to obtain assistance under the noninsured 
crop assistance program. 
‘‘(12) NONINSURED CROP ASSISTANCE PROGRAM.—The term 
‘noninsured crop assistance program’ means the program car-
ried out under section 196 of the Federal Agriculture Improve-
ment and Reform Act of 1996 (7 U.S.C. 7333). 
‘‘(13) QUALIFYING NATURAL DISASTER DECLARATION.—The 
term ‘qualifying natural disaster declaration’ means a natural 
disaster declared by the Secretary for production losses under 
section 321(a) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1961(a)). 
‘‘(14) SECRETARY.—The term ‘Secretary’ means the Sec-
retary of Agriculture. 
‘‘(15) SOCIALLY DISADVANTAGED FARMER OR RANCHER.—The 
term ‘socially disadvantaged farmer or rancher’ has the 
meaning given the term in section 2501(e) of the Food, Agri-
culture, Conservation, and Trade Act of 1990 (7 U.S.C. 2279(e)). 
‘‘(16) STATE.—The term ‘State’ means— 
‘‘(A) a State; 
‘‘(B) the District of Columbia; 
‘‘(C) the Commonwealth of Puerto Rico; and 
‘‘(D) any other territory or possession of the United 
States. 
‘‘(17) TRUST FUND.—The term ‘Trust Fund’ means the Agri-
cultural Disaster Relief Trust Fund established under section 
902 of the Trade Act of 1974. 
‘‘(18) UNITED STATES.—The term ‘United States’ when used 
in a geographical sense, means all of the States. 
‘‘(b) SUPPLEMENTAL REVENUE ASSISTANCE PAYMENTS.— 
‘‘(1) IN GENERAL.—The Secretary shall use such sums as 
are necessary from the Trust Fund to make crop disaster assist-
ance payments to eligible producers on farms in disaster coun-
ties that have incurred crop production losses or crop quality 
losses, or both, during the crop year. 
‘‘(2) AMOUNT.— 
‘‘(A) IN GENERAL.—Subject to subparagraph (B), the 
Secretary shall provide crop disaster assistance payments 
under this section to an eligible producer on a farm in 
an amount equal to 60 percent of the difference between— 
‘‘(i) the disaster assistance program guarantee, as 
described in paragraph (3); and 
‘‘(ii) the total farm revenue for a farm, as described 
in paragraph (4). 
‘‘(B) LIMITATION.—The disaster assistance program 
guarantee for a crop used to calculate the payments for 
a farm under subparagraph (A)(i) may not be greater than 
90 percent of the sum of the expected revenue, as described 
in paragraph (5) for each of the crops on a farm, as deter-
mined by the Secretary. 
‘‘(3) SUPPLEMENTAL REVENUE ASSISTANCE PROGRAM GUAR-
ANTEE.— 
‘‘(A) IN
GENERAL.—Except as otherwise provided in 
this paragraph, the supplemental assistance program guar-
antee shall be the sum obtained by adding—
H. R. 6124—507 
‘‘(i) for each insurable commodity on the farm, 
115 percent of the product obtained by multiplying— 
‘‘(I) a payment rate for the commodity that 
is equal to the price election for the commodity 
elected by the eligible producer; 
‘‘(II) the payment acres for the commodity that 
is equal to the number of acres planted, or pre-
vented from being planted, to the commodity; 
‘‘(III) the payment yield for the commodity 
that is equal to the percentage of the crop insur-
ance yield elected by the producer of the higher 
of— 
‘‘(aa) the adjusted actual production his-
tory yield; or 
‘‘(bb) the counter-cyclical program pay-
ment yield for each crop; and 
‘‘(ii) for each noninsurable commodity on a farm, 
120 percent of the product obtained by multiplying— 
‘‘(I) a payment rate for the commodity that 
is equal to 100 percent of the noninsured crop 
assistance program established price for the com-
modity; 
‘‘(II) the payment acres for the commodity that 
is equal to the number of acres planted, or pre-
vented from being planted, to the commodity; and 
‘‘(III) the payment yield for the commodity 
that is equal to the higher of— 
‘‘(aa) the adjusted noninsured crop assist-
ance program yield guarantee; or 
‘‘(bb) the counter-cyclical program pay-
ment yield for each crop. 
‘‘(B) ADJUSTMENT
INSURANCE
GUARANTEE.—Notwith-
standing subparagraph (A), in the case of an insurable 
commodity for which a plan of insurance provides for an 
adjustment in the guarantee, such as in the case of pre-
vented planting, the adjusted insurance guarantee shall 
be the basis for determining the disaster assistance pro-
gram guarantee for the insurable commodity. 
‘‘(C) ADJUSTED
ASSISTANCE
LEVEL.—Notwithstanding 
subparagraph (A), in the case of a noninsurable commodity 
for which the noninsured crop assistance program provides 
for an adjustment in the level of assistance, such as in 
the case of unharvested crops, the adjusted assistance level 
shall be the basis for determining the disaster assistance 
program guarantee for the noninsurable commodity. 
‘‘(D) EQUITABLE TREATMENT FOR NON-YIELD BASED POLI-
CIES.—The Secretary shall establish equitable treatment 
for non-yield based policies and plans of insurance, such 
as the Adjusted Gross Revenue Lite insurance program. 
‘‘(4) FARM REVENUE.— 
‘‘(A) IN GENERAL.—For purposes of this subsection, the 
total farm revenue for a farm, shall equal the sum obtained 
by adding— 
‘‘(i) the estimated actual value for each crop pro-
duced on a farm by using the product obtained by 
multiplying—
H. R. 6124—508 
‘‘(I) the actual crop acreage harvested by an 
eligible producer on a farm; 
‘‘(II) the estimated actual yield of the crop 
production; and 
‘‘(III) subject to subparagraphs (B) and (C), 
to the extent practicable, the national average 
market price received for the marketing year, as 
determined by the Secretary; 
‘‘(ii) 15 percent of amount of any direct payments 
made to the producer under sections 1103 and 1303 
of the Food, Conservation, and Energy Act of 2008 
or successor sections; 
‘‘(iii) the total amount of any counter-cyclical pay-
ments made to the producer under sections 1104 and 
1304 of the Food, Conservation, and Energy Act of 
2008 or successor sections or of any average crop rev-
enue election payments made to the producer under 
section 1105 of that Act; 
‘‘(iv) the total amount of any loan deficiency pay-
ments, marketing loan gains, and marketing certificate 
gains made to the producer under subtitles B and 
C of the Food, Conservation, and Energy Act of 2008 
or successor subtitles; 
‘‘(v) the amount of payments for prevented planting 
on a farm; 
‘‘(vi) the amount of crop insurance indemnities 
received by an eligible producer on a farm for each 
crop on a farm; 
‘‘(vii) the amount of payments an eligible producer 
on a farm received under the noninsured crop assist-
ance program for each crop on a farm; and 
‘‘(viii) the value of any other natural disaster 
assistance payments provided by the Federal Govern-
ment to an eligible producer on a farm for each crop 
on a farm for the same loss for which the eligible 
producer is seeking assistance. 
‘‘(B) ADJUSTMENT.—The Secretary shall adjust the 
average market price received by the eligible producer on 
a farm— 
‘‘(i) to reflect the average quality discounts applied 
to the local or regional market price of a crop or 
mechanically harvested forage due to a reduction in 
the intrinsic characteristics of the production resulting 
from adverse weather, as determined annually by the 
State office of the Farm Service Agency; and 
‘‘(ii) to account for a crop the value of which is 
reduced due to excess moisture resulting from a dis-
aster-related condition. 
‘‘(C) MAXIMUM
AMOUNT
FOR
CERTAIN
CROPS.—With 
respect to a crop for which an eligible producer on a farm 
receives assistance under the noninsured crop assistance 
program, the national average market price received during 
the marketing year shall be an amount not more than 
100 percent of the price of the crop established under 
the noninsured crop assistance program. 
‘‘(5) EXPECTED REVENUE.—The expected revenue for each 
crop on a farm shall equal the sum obtained by adding—
H. R. 6124—509 
‘‘(A) the product obtained by multiplying— 
‘‘(i) the greatest of— 
‘‘(I) the adjusted actual production history 
yield of the eligible producer on a farm; and 
‘‘(II) the counter-cyclical program payment 
yield; 
‘‘(ii) the acreage planted or prevented from being 
planted for each crop; and 
‘‘(iii) 100 percent of the insurance price guarantee; 
and 
‘‘(B) the product obtained by multiplying— 
‘‘(i) 100 percent of the adjusted noninsured crop 
assistance program yield; and 
‘‘(ii) 100 percent of the noninsured crop assistance 
program price for each of the crops on a farm. 
‘‘(c) LIVESTOCK INDEMNITY PAYMENTS.— 
‘‘(1) PAYMENTS.—The Secretary shall use such sums as 
are necessary from the Trust Fund to make livestock indemnity 
payments to eligible producers on farms that have incurred 
livestock death losses in excess of the normal mortality due 
to adverse weather, as determined by the Secretary, during 
the calendar year, including losses due to hurricanes, floods, 
blizzards, disease, wildfires, extreme heat, and extreme cold. 
‘‘(2) PAYMENT RATES.—Indemnity payments to an eligible 
producer on a farm under paragraph (1) shall be made at 
a rate of 75 percent of the market value of the applicable 
livestock on the day before the date of death of the livestock, 
as determined by the Secretary. 
‘‘(d) LIVESTOCK FORAGE DISASTER PROGRAM.— 
‘‘(1) DEFINITIONS.—In this subsection: 
‘‘(A) COVERED LIVESTOCK.— 
‘‘(i) IN
GENERAL.—Except as provided in clause 
(ii), the term ‘covered livestock’ means livestock of an 
eligible livestock producer that, during the 60 days 
prior to the beginning date of a qualifying drought 
or fire condition, as determined by the Secretary, the 
eligible livestock producer— 
‘‘(I) owned; 
‘‘(II) leased; 
‘‘(III) purchased; 
‘‘(IV) entered into a contract to purchase; 
‘‘(V) is a contract grower; or 
‘‘(VI) sold or otherwise disposed of due to quali-
fying drought conditions during— 
‘‘(aa) the current production year; or 
‘‘(bb) subject to paragraph (3)(B)(ii), 1 or 
both of the 2 production years immediately 
preceding the current production year. 
‘‘(ii) EXCLUSION.—The term ‘covered livestock’ does 
not include livestock that were or would have been 
in a feedlot, on the beginning date of the qualifying 
drought or fire condition, as a part of the normal 
business operation of the eligible livestock producer, 
as determined by the Secretary. 
‘‘(B) DROUGHT MONITOR.—The term ‘drought monitor’ 
means a system for classifying drought severity according
H. R. 6124—510 
to a range of abnormally dry to exceptional drought, as 
defined by the Secretary. 
‘‘(C) ELIGIBLE LIVESTOCK PRODUCER.— 
‘‘(i) IN GENERAL.—The term ‘eligible livestock pro-
ducer’ means an eligible producer on a farm that— 
‘‘(I) is an owner, cash or share lessee, or con-
tract grower of covered livestock that provides the 
pastureland or grazing land, including cash-leased 
pastureland or grazing land, for the livestock; 
‘‘(II) provides the pastureland or grazing land 
for 
covered 
livestock, 
including 
cash-leased 
pastureland or grazing land that is physically 
located in a county affected by drought; 
‘‘(III) certifies grazing loss; and 
‘‘(IV) meets all other eligibility requirements 
established under this subsection. 
‘‘(ii) EXCLUSION.—The term ‘eligible livestock pro-
ducer’ does not include an owner, cash or share lessee, 
or contract grower of livestock that rents or leases 
pastureland or grazing land owned by another person 
on a rate-of-gain basis. 
‘‘(D) NORMAL CARRYING CAPACITY.—The term ‘normal 
carrying capacity’, with respect to each type of grazing 
land or pastureland in a county, means the normal carrying 
capacity, as determined under paragraph (3)(D)(i), that 
would be expected from the grazing land or pastureland 
for livestock during the normal grazing period, in the 
absence of a drought or fire that diminishes the production 
of the grazing land or pastureland. 
‘‘(E) NORMAL
GRAZING
PERIOD.—The term ‘normal 
grazing period’, with respect to a county, means the normal 
grazing period during the calendar year for the county, 
as determined under paragraph (3)(D)(i). 
‘‘(2) PROGRAM.—The Secretary shall use such sums as are 
necessary from the Trust Fund to provide compensation for 
losses to eligible livestock producers due to grazing losses for 
covered livestock due to— 
‘‘(A) a drought condition, as described in paragraph 
(3); or 
‘‘(B) fire, as described in paragraph (4). 
‘‘(3) ASSISTANCE
FOR
LOSSES
DUE
TO
DROUGHT
CONDI-
TIONS.— 
‘‘(A) ELIGIBLE LOSSES.— 
‘‘(i) IN GENERAL.—An eligible livestock producer 
may receive assistance under this subsection only for 
grazing losses for covered livestock that occur on land 
that— 
‘‘(I) is native or improved pastureland with 
permanent vegetative cover; or 
‘‘(II) is planted to a crop planted specifically 
for the purpose of providing grazing for covered 
livestock. 
‘‘(ii) EXCLUSIONS.—An eligible livestock producer 
may not receive assistance under this subsection for 
grazing losses that occur on land used for haying or 
grazing under the conservation reserve program estab-
lished under subchapter B of chapter 1 of subtitle
H. R. 6124—511 
D of title XII of the Food Security Act of 1985 (16 
U.S.C. 3831 et seq.). 
‘‘(B) MONTHLY PAYMENT RATE.— 
‘‘(i) IN
GENERAL.—Except as provided in clause 
(ii), the payment rate for assistance under this para-
graph for 1 month shall, in the case of drought, be 
equal to 60 percent of the lesser of— 
‘‘(I) the monthly feed cost for all covered live-
stock owned or leased by the eligible livestock 
producer, as determined under subparagraph (C); 
or 
‘‘(II) the monthly feed cost calculated by using 
the normal carrying capacity of the eligible grazing 
land of the eligible livestock producer. 
‘‘(ii) PARTIAL COMPENSATION.—In the case of an 
eligible livestock producer that sold or otherwise dis-
posed of covered livestock due to drought conditions 
in 1 or both of the 2 production years immediately 
preceding the current production year, as determined 
by the Secretary, the payment rate shall be 80 percent 
of the payment rate otherwise calculated in accordance 
with clause (i). 
‘‘(C) MONTHLY FEED COST.— 
‘‘(i) IN
GENERAL.—The monthly feed cost shall 
equal the product obtained by multiplying— 
‘‘(I) 30 days; 
‘‘(II) a payment quantity that is equal to the 
feed grain equivalent, as determined under clause 
(ii); and 
‘‘(III) a payment rate that is equal to the corn 
price per pound, as determined under clause (iii). 
‘‘(ii) FEED
GRAIN
EQUIVALENT.—For purposes of 
clause (i)(I), the feed grain equivalent shall equal— 
‘‘(I) in the case of an adult beef cow, 15.7 
pounds of corn per day; or 
‘‘(II) in the case of any other type of weight 
of livestock, an amount determined by the Sec-
retary that represents the average number of 
pounds of corn per day necessary to feed the live-
stock. 
‘‘(iii) CORN
PRICE
PER
POUND.—For purposes of 
clause (i)(II), the corn price per pound shall equal 
the quotient obtained by dividing— 
‘‘(I) the higher of— 
‘‘(aa) the national average corn price per 
bushel for the 12-month period immediately 
preceding March 1 of the year for which the 
disaster assistance is calculated; or 
‘‘(bb) the national average corn price per 
bushel for the 24-month period immediately 
preceding that March 1; by 
‘‘(II) 56. 
‘‘(D) NORMAL GRAZING PERIOD AND DROUGHT MONITOR 
INTENSITY.— 
‘‘(i) FSA COUNTY COMMITTEE DETERMINATIONS.— 
‘‘(I) IN GENERAL.—The Secretary shall deter-
mine the normal carrying capacity and normal
H. R. 6124—512 
grazing period for each type of grazing land or 
pastureland in the county served by the applicable 
committee. 
‘‘(II) CHANGES.—No change to the normal car-
rying capacity or normal grazing period established 
for a county under subclause (I) shall be made 
unless the change is requested by the appropriate 
State and county Farm Service Agency committees. 
‘‘(ii) DROUGHT INTENSITY.— 
‘‘(I) D2.—An eligible livestock producer that 
owns or leases grazing land or pastureland that 
is physically located in a county that is rated by 
the U.S. Drought Monitor as having a D2 (severe 
drought) intensity in any area of the county for 
at least 8 consecutive weeks during the normal 
grazing period for the county, as determined by 
the Secretary, shall be eligible to receive assistance 
under this paragraph in an amount equal to 1 
monthly payment using the monthly payment rate 
determined under subparagraph (B). 
‘‘(II) D3.—An eligible livestock producer that 
owns or leases grazing land or pastureland that 
is physically located in a county that is rated by 
the U.S. Drought Monitor as having at least a 
D3 (extreme drought) intensity in any area of the 
county at any time during the normal grazing 
period for the county, as determined by the Sec-
retary, shall be eligible to receive assistance under 
this paragraph— 
‘‘(aa) in an amount equal to 2 monthly 
payments using the monthly payment rate 
determined under subparagraph (B); or 
‘‘(bb) if the county is rated as having a 
D3 (extreme drought) intensity in any area 
of the county for at least 4 weeks during the 
normal grazing period for the county, or is 
rated as having a D4 (exceptional drought) 
intensity in any area of the county at any 
time during the normal grazing period, in an 
amount equal to 3 monthly payments using 
the monthly payment rate determined under 
subparagraph (B). 
‘‘(4) ASSISTANCE FOR LOSSES DUE TO FIRE ON PUBLIC MAN-
AGED LAND.— 
‘‘(A) IN GENERAL.—An eligible livestock producer may 
receive assistance under this paragraph only if— 
‘‘(i) the grazing losses occur on rangeland that 
is managed by a Federal agency; and 
‘‘(ii) the eligible livestock producer is prohibited 
by the Federal agency from grazing the normal per-
mitted livestock on the managed rangeland due to 
a fire. 
‘‘(B) PAYMENT RATE.—The payment rate for assistance 
under this paragraph shall be equal to 50 percent of the 
monthly feed cost for the total number of livestock covered 
by the Federal lease of the eligible livestock producer, 
as determined under paragraph (3)(C).
H. R. 6124—513 
‘‘(C) PAYMENT DURATION.— 
‘‘(i) IN GENERAL.—Subject to clause (ii), an eligible 
livestock producer shall be eligible to receive assistance 
under this paragraph for the period— 
‘‘(I) beginning on the date on which the Fed-
eral agency excludes the eligible livestock producer 
from using the managed rangeland for grazing; 
and 
‘‘(II) ending on the last day of the Federal 
lease of the eligible livestock producer. 
‘‘(ii) LIMITATION.—An eligible livestock producer 
may only receive assistance under this paragraph for 
losses that occur on not more than 180 days per year. 
‘‘(5) MINIMUM
RISK
MANAGEMENT
PURCHASE
REQUIRE-
MENTS.— 
‘‘(A) IN
GENERAL.—Except as otherwise provided in 
this paragraph, a livestock producer shall only be eligible 
for assistance under this subsection if the livestock pro-
ducer— 
‘‘(i) obtained a policy or plan of insurance under 
subtitle A for the grazing land incurring the losses 
for which assistance is being requested; or 
‘‘(ii) filed the required paperwork, and paid the 
administrative fee by the applicable State filing dead-
line, for the noninsured crop assistance program for 
the grazing land incurring the losses for which assist-
ance is being requested. 
‘‘(B) WAIVER FOR SOCIALLY DISADVANTAGED, LIMITED 
RESOURCE, OR
BEGINNING
FARMER
OR
RANCHER.—In the 
case of an eligible livestock producer that is a socially 
disadvantaged farmer or rancher or limited resource or 
beginning farmer or rancher, as determined by the Sec-
retary, the Secretary may— 
‘‘(i) waive subparagraph (A); and 
‘‘(ii) provide disaster assistance under this section 
at a level that the Secretary determines to be equitable 
and appropriate. 
‘‘(C) WAIVER FOR 2008 CALENDAR YEAR.—In the case 
of an eligible livestock producer that suffered losses on 
grazing land during the 2008 calendar year but does not 
meet the requirements of subparagraph (A), the Secretary 
shall waive subparagraph (A) if the eligible livestock pro-
ducer pays a fee in an amount equal to the applicable 
noninsured crop assistance program fee or catastrophic 
risk protection plan fee required under subparagraph (A) 
to the Secretary not later than 90 days after the date 
of enactment of this subtitle. 
‘‘(D) EQUITABLE RELIEF.— 
‘‘(i) IN GENERAL.—The Secretary may provide equi-
table relief to an eligible livestock producer that is 
otherwise ineligible or unintentionally fails to meet 
the requirements of subparagraph (A) for the grazing 
land incurring the loss on a case-by-case basis, as 
determined by the Secretary. 
‘‘(ii) 2008 CALENDAR
YEAR.—In the case of an 
eligible livestock producer that suffered losses on
H. R. 6124—514 
grazing land during the 2008 calendar year, the Sec-
retary shall take special consideration to provide equi-
table relief in cases in which the eligible livestock 
producer failed to meet the requirements of subpara-
graph (A) due to the enactment of this subtitle after 
the closing date of sales periods for crop insurance 
under subtitle A and the noninsured crop assistance 
program. 
‘‘(6) NO DUPLICATIVE PAYMENTS.— 
‘‘(A) IN GENERAL.—An eligible livestock producer may 
elect to receive assistance for grazing or pasture feed losses 
due to drought conditions under paragraph (3) or fire under 
paragraph (4), but not both for the same loss, as determined 
by the Secretary. 
‘‘(B) RELATIONSHIP TO SUPPLEMENTAL REVENUE ASSIST-
ANCE.—An eligible livestock producer that receives assist-
ance under this subsection may not also receive assistance 
for losses to crops on the same land with the same intended 
use under subsection (b). 
‘‘(e) EMERGENCY ASSISTANCE FOR LIVESTOCK, HONEY BEES, AND 
FARM-RAISED FISH.— 
‘‘(1) 
IN
GENERAL.—The 
Secretary 
shall 
use 
up 
to 
$50,000,000 per year from the Trust Fund to provide emergency 
relief to eligible producers of livestock, honey bees, and farm- 
raised fish to aid in the reduction of losses due to disease, 
adverse weather, or other conditions, such as blizzards and 
wildfires, as determined by the Secretary, that are not covered 
under subsection (b), (c), or (d). 
‘‘(2) USE OF FUNDS.—Funds made available under this sub-
section shall be used to reduce losses caused by feed or water 
shortages, disease, or other factors as determined by the Sec-
retary. 
‘‘(3) AVAILABILITY OF FUNDS.—Any funds made available 
under this subsection shall remain available until expended. 
‘‘(f) TREE ASSISTANCE PROGRAM.— 
‘‘(1) DEFINITIONS.—In this subsection: 
‘‘(A) 
ELIGIBLE
ORCHARDIST.—The 
term 
‘eligible 
orchardist’ means a person that produces annual crops 
from trees for commercial purposes. 
‘‘(B) NATURAL DISASTER.—The term ‘natural disaster’ 
means plant disease, insect infestation, drought, fire, 
freeze, flood, earthquake, lightning, or other occurrence, 
as determined by the Secretary. 
‘‘(C) NURSERY TREE GROWER.—The term ‘nursery tree 
grower’ means a person who produces nursery, ornamental, 
fruit, nut, or Christmas trees for commercial sale, as deter-
mined by the Secretary. 
‘‘(D) TREE.—The term ‘tree’ includes a tree, bush, and 
vine. 
‘‘(2) ELIGIBILITY.— 
‘‘(A) LOSS.—Subject to subparagraph (B), the Secretary 
shall provide assistance— 
‘‘(i) under paragraph (3) to eligible orchardists and 
nursery tree growers that planted trees for commercial 
purposes but lost the trees as a result of a natural 
disaster, as determined by the Secretary; and
H. R. 6124—515 
‘‘(ii) under paragraph (3)(B) to eligible orchardists 
and nursery tree growers that have a production his-
tory for commercial purposes on planted or existing 
trees but lost the trees as a result of a natural disaster, 
as determined by the Secretary. 
‘‘(B) LIMITATION.—An eligible orchardist or nursery 
tree grower shall qualify for assistance under subparagraph 
(A) only if the tree mortality of the eligible orchardist 
or nursery tree grower, as a result of damaging weather 
or related condition, exceeds 15 percent (adjusted for 
normal mortality). 
‘‘(3) ASSISTANCE.—Subject to paragraph (4), the assistance 
provided by the Secretary to eligible orchardists and nursery 
tree growers for losses described in paragraph (2) shall consist 
of— 
‘‘(A)(i) reimbursement of 70 percent of the cost of 
replanting trees lost due to a natural disaster, as deter-
mined by the Secretary, in excess of 15 percent mortality 
(adjusted for normal mortality); or 
‘‘(ii) at the option of the Secretary, sufficient seedlings 
to reestablish a stand; and 
‘‘(B) reimbursement of 50 percent of the cost of pruning, 
removal, and other costs incurred by an eligible orchardist 
or nursery tree grower to salvage existing trees or, in 
the case of tree mortality, to prepare the land to replant 
trees as a result of damage or tree mortality due to a 
natural disaster, as determined by the Secretary, in excess 
of 15 percent damage or mortality (adjusted for normal 
tree damage and mortality). 
‘‘(4) LIMITATIONS ON ASSISTANCE.— 
‘‘(A) DEFINITIONS OF LEGAL ENTITY AND PERSON.—In 
this paragraph, the terms ‘legal entity’ and ‘person’ have 
the meaning given those terms in section 1001(a) of the 
Food Security Act of 1985 (7 U.S.C. 1308(a) (as amended 
by section 1603 of the Food, Conservation, and Energy 
Act of 2008). 
‘‘(B) AMOUNT.—The total amount of payments received, 
directly or indirectly, by a person or legal entity (excluding 
a joint venture or general partnership) under this sub-
section may not exceed $100,000 for any crop year, or 
an equivalent value in tree seedlings. 
‘‘(C) ACRES.—The total quantity of acres planted to 
trees or tree seedlings for which a person or legal entity 
shall be entitled to receive payments under this subsection 
may not exceed 500 acres. 
‘‘(g) RISK MANAGEMENT PURCHASE REQUIREMENT.— 
‘‘(1) IN GENERAL.—Except as otherwise provided in this 
section, the eligible producers on a farm shall not be eligible 
for assistance under this section (other than subsection (c)) 
if the eligible producers on the farm— 
‘‘(A) in the case of each insurable commodity of the 
eligible producers on the farm, did not obtain a policy 
or plan of insurance under subtitle A (excluding a crop 
insurance pilot program under that subtitle); or 
‘‘(B) in the case of each noninsurable commodity of 
the eligible producers on the farm, did not file the required 
paperwork, and pay the administrative fee by the
H. R. 6124—516 
applicable State filing deadline, for the noninsured crop 
assistance program. 
‘‘(2) MINIMUM.—To be considered to have obtained insur-
ance under paragraph (1)(A), an eligible producer on a farm 
shall have obtained a policy or plan of insurance with not 
less than 50 percent yield coverage at 55 percent of the insur-
able price for each crop grazed, planted, or intended to be 
planted for harvest on a whole farm. 
‘‘(3) WAIVER
FOR
SOCIALLY
DISADVANTAGED, 
LIMITED 
RESOURCE, OR BEGINNING FARMER OR RANCHER.—With respect 
to eligible producers that are socially disadvantaged farmers 
or ranchers or limited resource or beginning farmers or 
ranchers, as determined by the Secretary, the Secretary may— 
‘‘(A) waive paragraph (1); and 
‘‘(B) provide disaster assistance under this section at 
a level that the Secretary determines to be equitable and 
appropriate. 
‘‘(4) WAIVER FOR 2008 CROP YEAR.—In the case of an eligible 
producer that suffered losses in an insurable commodity or 
noninsurable commodity during the 2008 crop year but does 
not meet the requirements of paragraph (1), the Secretary 
shall waive paragraph (1) if the eligible producer pays a fee 
in an amount equal to the applicable noninsured crop assistance 
program fee or catastrophic risk protection plan fee required 
under paragraph (1) to the Secretary not later than 90 days 
after the date of enactment of this subtitle. 
‘‘(5) EQUITABLE RELIEF.— 
‘‘(A) IN GENERAL.—The Secretary may provide equi-
table relief to eligible producers on a farm that are other-
wise ineligible or unintentionally fail to meet the require-
ments of paragraph (1) for 1 or more crops on a farm 
on a case-by-case basis, as determined by the Secretary. 
‘‘(B) 2008 CROP YEAR.—In the case of eligible producers 
on a farm that suffered losses in an insurable commodity 
or noninsurable commodity during the 2008 crop year, the 
Secretary shall take special consideration to provide equi-
table relief in cases in which the eligible producers failed 
to meet the requirements of paragraph (1) due to the 
enactment of this subtitle after the closing date of sales 
periods for crop insurance under subtitle A and the non-
insured crop assistance program. 
‘‘(h) PAYMENT LIMITATIONS.— 
‘‘(1) DEFINITIONS OF LEGAL ENTITY AND PERSON.—In this 
subsection, the terms ‘legal entity’ and ‘person’ have the 
meaning given those terms in section 1001(a) of the Food Secu-
rity Act of 1985 (7 U.S.C. 1308(a) (as amended by section 
1603 of the Food, Conservation, and Energy Act of 2008). 
‘‘(2) AMOUNT.—The total amount of disaster assistance pay-
ments received, directly or indirectly, by a person or legal 
entity (excluding a joint venture or general partnership) under 
this section (excluding payments received under subsection (f)) 
may not exceed $100,000 for any crop year. 
‘‘(3) AGI LIMITATION.—Section 1001D of the Food Security 
Act of 1985 (7 U.S.C. 1308–3a) or any successor provision 
shall apply with respect to assistance provided under this sec-
tion.
H. R. 6124—517 
‘‘(4) DIRECT ATTRIBUTION.—Subsections (e) and (f) of section 
1001 of the Food Security Act of 1985 (7 U.S.C. 1308) or 
any successor provisions relating to direct attribution shall 
apply with respect to assistance provided under this section. 
‘‘(i) PERIOD OF EFFECTIVENESS.—This section shall be effective 
only for losses that are incurred as the result of a disaster, adverse 
weather, or other environmental condition that occurs on or before 
September 30, 2011, as determined by the Secretary. 
‘‘(j) NO DUPLICATIVE PAYMENTS.—In implementing any other 
program which makes disaster assistance payments (except for 
indemnities made under subtitle A and section 196 of the Federal 
Agriculture Improvement and Reform Act of 1996), the Secretary 
shall prevent duplicative payments with respect to the same loss 
for which a person receives a payment under subsections (b), (c), 
(d), (e), or (f). 
‘‘(k) APPLICATION.— 
‘‘(1) IN GENERAL.—Subject to paragraph (2) and notwith-
standing any provision of subtitle A, subtitle A shall not apply 
to this subtitle. 
‘‘(2) CROSS REFERENCES.—Paragraph (1) shall not apply 
to a specific reference in this subtitle to a provision of subtitle 
A.’’. 
(b) TRANSITION.—For purposes of the 2008 crop year, the Sec-
retary shall carry out subsections (f)(4) and (h) of section 531 
of the Federal Crop Insurance Act (as added by subsection (a)) 
in accordance with the terms and conditions of sections 1001 
through 1001D of the Food Security Act of 1985 (16 U.S.C. 1308 
et seq.), as in effect on September 30, 2007. 
(c) CONFORMING AMENDMENTS.— 
(1) Section 501 of the Federal Crop Insurance Act (7 U.S.C. 
1501) is amended by striking the section heading and enu-
merator and inserting the following: 
‘‘Subtitle A—Federal Crop Insurance Act 
‘‘SEC. 501. SHORT TITLE AND APPLICATION OF OTHER PROVISIONS.’’. 
(2) Subtitle A of the Federal Crop Insurance Act (as des-
ignated under paragraph (1)) is amended— 
(A) by striking ‘‘This title’’ each place it appears and 
inserting ‘‘This subtitle’’; and 
(B) by striking ‘‘this title’’ each place it appears and 
inserting ‘‘this subtitle’’. 
SEC. 12034. FISHERIES DISASTER ASSISTANCE. 
Of the funds of the Commodity Credit Corporation, the Sec-
retary of Agriculture shall transfer to the Secretary of Commerce 
$170,000,000 for fiscal year 2008 for the National Marine Fisheries 
Service to distribute to commercial and recreational members of 
the fishing communities affected by the salmon fishery failure in 
the States of California, Oregon, and Washington designated under 
section 312(a) of the Magnuson-Stevens Fishery Conservation and 
Management Act (16 U.S.C. 1861a(a)) on May 1, 2008, in accordance 
with that section.
H. R. 6124—518 
Subtitle B—Small Business Disaster Loan 
Program 
SEC. 12051. SHORT TITLE. 
This subtitle may be cited as the ‘‘Small Business Disaster 
Response and Loan Improvements Act of 2008’’. 
SEC. 12052. DEFINITIONS. 
In this subtitle— 
(1) the terms ‘‘Administration’’ and ‘‘Administrator’’ mean 
the Small Business Administration and the Administrator 
thereof, respectively; 
(2) the term ‘‘disaster area’’ means an area affected by 
a natural or other disaster, as determined for purposes of 
paragraph (1) or (2) of section 7(b) of the Small Business 
Act (15 U.S.C. 636(b)), during the period of such declaration; 
(3) the term ‘‘disaster loan program of the Administration’’ 
means assistance under section 7(b) of the Small Business 
Act (15 U.S.C. 636(b)), as amended by this Act; 
(4) the term ‘‘disaster update period’’ means the period 
beginning on the date on which the President declares a major 
disaster (including any major disaster relating to which the 
Administrator declares eligibility for additional disaster assist-
ance under paragraph (9) of section 7(b) of the Small Business 
Act (15 U.S.C. 636(b)), as added by this Act) and ending on 
the date on which such declaration terminates; 
(5) the term ‘‘major disaster’’ has the meaning given that 
term in section 102 of the Robert T. Stafford Disaster Relief 
and Emergency Assistance Act (42 U.S.C. 5122); 
(6) the term ‘‘small business concern’’ has the meaning 
given that term under section 3 of the Small Business Act 
(15 U.S.C. 632); and 
(7) the term ‘‘State’’ means any State of the United States, 
the District of Columbia, the Commonwealth of Puerto Rico, 
the Northern Mariana Islands, the Virgin Islands, Guam, Amer-
ican Samoa, and any territory or possession of the United 
States. 
PART I—DISASTER PLANNING AND RESPONSE 
SEC. 12061. ECONOMIC INJURY DISASTER LOANS TO NONPROFITS. 
(a) IN GENERAL.—Section 7(b)(2) of the Small Business Act 
(15 U.S.C. 636(b)(2)) is amended— 
(1) in the matter preceding subparagraph (A)— 
(A) by inserting after ‘‘small business concern’’ the 
following: ‘‘, private nonprofit organization,’’; and 
(B) by inserting after ‘‘the concern’’ the following: ‘‘, 
the organization,’’; and 
(2) in subparagraph (D) by inserting after ‘‘small business 
concerns’’ the following: ‘‘, private nonprofit organizations,’’. 
(b) CONFORMING AMENDMENT.—Section 7(c)(5)(C) of the Small 
Business Act (15 U.S.C. 636(c)(5)(C)) is amended by inserting after 
‘‘business’’ the following: ‘‘, private nonprofit organization,’’.
H. R. 6124—519 
SEC. 12062. COORDINATION OF DISASTER ASSISTANCE PROGRAMS 
WITH FEMA. 
The Small Business Act (15 U.S.C. 631 et seq.) is amended— 
(1) by redesignating section 37 as section 44; and 
(2) by inserting after section 36 the following: 
‘‘SEC. 37. COORDINATION OF DISASTER ASSISTANCE PROGRAMS WITH 
FEMA. 
‘‘(a) COORDINATION REQUIRED.—The Administrator shall ensure 
that the disaster assistance programs of the Administration are 
coordinated, to the maximum extent practicable, with the disaster 
assistance programs of the Federal Emergency Management 
Agency. 
‘‘(b) REGULATIONS REQUIRED.—The Administrator, in consulta-
tion with the Administrator of the Federal Emergency Management 
Agency, shall establish regulations to ensure that each application 
for disaster assistance is submitted as quickly as practicable to 
the Administration or directed to the appropriate agency under 
the circumstances. 
‘‘(c) COMPLETION; REVISION.—The initial regulations shall be 
completed not later than 270 days after the date of the enactment 
of the Small Business Disaster Response and Loan Improvements 
Act of 2008. Thereafter, the regulations shall be revised on an 
annual basis. 
‘‘(d) REPORT.—The Administrator shall include a report on the 
regulations whenever the Administration submits the report 
required by section 43.’’. 
SEC. 12063. PUBLIC AWARENESS OF DISASTER DECLARATION AND 
APPLICATION PERIODS. 
(a) IN GENERAL.—Section 7(b) of the Small Business Act (15 
U.S.C. 636(b)) is amended by inserting immediately after paragraph 
(3), the following: 
‘‘(4) COORDINATION WITH FEMA.— 
‘‘(A) IN GENERAL.—Notwithstanding any other provi-
sion of law, for any disaster declared under this subsection 
or major disaster (including any major disaster relating 
to which the Administrator declares eligibility for addi-
tional disaster assistance under paragraph (9)), the 
Administrator, in consultation with the Administrator of 
the Federal Emergency Management Agency, shall ensure, 
to the maximum extent practicable, that all application 
periods for disaster relief under this Act correspond with 
application deadlines established under the Robert T. Staf-
ford Disaster Relief and Emergency Assistance Act (42 
U.S.C. 5121 et seq.), or as extended by the President. 
‘‘(B) DEADLINES.—Notwithstanding any other provision 
of law, not later than 10 days before the closing date 
of an application period for a major disaster (including 
any major disaster relating to which the Administrator 
declares eligibility for additional disaster assistance under 
paragraph (9)), the Administrator, in consultation with the 
Administrator of the Federal Emergency Management 
Agency, shall submit to the Committee on Small Business 
and Entrepreneurship of the Senate and the Committee 
on Small Business of the House of Representatives a report 
that includes—
H. R. 6124—520 
‘‘(i) the deadline for submitting applications for 
assistance under this Act relating to that major dis-
aster; 
‘‘(ii) information regarding the number of loan 
applications and disbursements processed by the 
Administrator relating to that major disaster for each 
day during the period beginning on the date on which 
that major disaster was declared and ending on the 
date of that report; and 
‘‘(iii) an estimate of the number of potential 
applicants that have not submitted an application 
relating to that major disaster. 
‘‘(5) PUBLIC
AWARENESS
OF
DISASTERS.—If a disaster is 
declared under this subsection or the Administrator declares 
eligibility for additional disaster assistance under paragraph 
(9), the Administrator shall make every effort to communicate 
through radio, television, print, and web-based outlets, all rel-
evant 
information 
needed 
by 
disaster 
loan 
applicants, 
including— 
‘‘(A) the date of such declaration; 
‘‘(B) cities and towns within the area of such declara-
tion; 
‘‘(C) loan application deadlines related to such disaster; 
‘‘(D) all relevant contact information for victim services 
available through the Administration (including links to 
small business development center websites); 
‘‘(E) links to relevant Federal and State disaster assist-
ance websites, including links to websites providing 
information regarding assistance available from the Fed-
eral Emergency Management Agency; 
‘‘(F) information on eligibility criteria for Administra-
tion loan programs, including where such applications can 
be found; and 
‘‘(G) application materials that clearly state the func-
tion of the Administration as the Federal source of disaster 
loans for homeowners and renters.’’. 
(b) MARKETING AND OUTREACH.—Not later than 90 days after 
the date of enactment of this Act, the Administrator shall create 
a marketing and outreach plan that— 
(1) encourages a proactive approach to the disaster relief 
efforts of the Administration; 
(2) makes clear the services provided by the Administra-
tion, including contact information, application information, and 
timelines for submitting applications, the review of applications, 
and the disbursement of funds; 
(3) describes the different disaster loan programs of the 
Administration, including how they are made available and 
the eligibility requirements for each loan program; 
(4) provides for regional marketing, focusing on disasters 
occurring in each region before the date of enactment of this 
Act, and likely scenarios for disasters in each such region; 
and 
(5) ensures that the marketing plan is made available 
at small business development centers and on the website 
of the Administration. 
(c) TECHNICAL AND CONFORMING AMENDMENTS.—
H. R. 6124—521 
(1) IN GENERAL.—Section 3 of the Small Business Act (15 
U.S.C. 632) is amended by adding at the end the following: 
‘‘(s) MAJOR DISASTER.—In this Act, the term ‘major disaster’ 
has the meaning given that term in section 102 of the Robert 
T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 
5122).’’. 
(2) TECHNICAL CORRECTION.—Section 7(b)(2) of the Small 
Business Act (15 U.S.C. 636(b)(2)) is amended by striking ‘‘Dis-
aster Relief and Emergency Assistance Act’’ and inserting 
‘‘Robert T. Stafford Disaster Relief and Emergency Assistance 
Act (42 U.S.C. 5121 et seq.)’’. 
SEC. 12064. CONSISTENCY BETWEEN ADMINISTRATION REGULATIONS 
AND STANDARD OPERATING PROCEDURES. 
(a) IN GENERAL.—The Administrator shall, promptly following 
the date of enactment of this Act, conduct a study of whether 
the standard operating procedures of the Administration for loans 
offered under section 7(b) of the Small Business Act (15 U.S.C. 
636(b)) are consistent with the regulations of the Administration 
for administering the disaster loan program. 
(b) REPORT.—Not later than 180 days after the date of enact-
ment of this Act, the Administrator shall submit to Congress a 
report containing all findings and recommendations of the study 
conducted under subsection (a). 
SEC. 12065. INCREASING COLLATERAL REQUIREMENTS. 
Section 7(c)(6) of the Small Business Act (15 U.S.C. 636(c)(6)) 
is amended by striking ‘‘$10,000 or less’’ and inserting ‘‘$14,000 
or less (or such higher amount as the Administrator determines 
appropriate in the event of a major disaster)’’. 
SEC. 12066. PROCESSING DISASTER LOANS. 
(a) AUTHORITY
FOR
QUALIFIED
PRIVATE
CONTRACTORS
TO 
PROCESS DISASTER LOANS.—Section 7(b) of the Small Business Act 
(15 U.S.C. 636(b)) is amended by inserting immediately after para-
graph (5), as added by this Act, the following: 
‘‘(6) AUTHORITY FOR QUALIFIED PRIVATE CONTRACTORS.— 
‘‘(A) DISASTER LOAN PROCESSING.—The Administrator 
may enter into an agreement with a qualified private con-
tractor, as determined by the Administrator, to process 
loans under this subsection in the event of a major disaster 
(including any major disaster relating to which the 
Administrator declares eligibility for additional disaster 
assistance under paragraph (9)), under which the Adminis-
trator shall pay the contractor a fee for each loan processed. 
‘‘(B) LOAN LOSS VERIFICATION SERVICES.—The Adminis-
trator may enter into an agreement with a qualified lender 
or loss verification professional, as determined by the 
Administrator, to verify losses for loans under this sub-
section in the event of a major disaster (including any 
major disaster relating to which the Administrator declares 
eligibility for additional disaster assistance under para-
graph (9)), under which the Administrator shall pay the 
lender or verification professional a fee for each loan for 
which such lender or verification professional verifies 
losses.’’.
H. R. 6124—522 
(b) COORDINATION OF EFFORTS BETWEEN THE ADMINISTRATOR 
AND THE INTERNAL REVENUE SERVICE TO EXPEDITE LOAN PROC-
ESSING.—The Administrator and the Commissioner of Internal Rev-
enue shall, to the maximum extent practicable, ensure that all 
relevant and allowable tax records for loan approval are shared 
with loan processors in an expedited manner, upon request by 
the Administrator. 
SEC. 12067. INFORMATION TRACKING AND FOLLOW-UP SYSTEM. 
The Small Business Act is amended by inserting after section 
37, as added by this Act, the following: 
‘‘SEC. 38. INFORMATION TRACKING AND FOLLOW-UP SYSTEM FOR DIS-
ASTER ASSISTANCE. 
‘‘(a) SYSTEM
REQUIRED.—The Administrator shall develop, 
implement, or maintain a centralized information system to track 
communications between personnel of the Administration and 
applicants for disaster assistance. The system shall ensure that 
whenever an applicant for disaster assistance communicates with 
such personnel on a matter relating to the application, the following 
information is recorded: 
‘‘(1) The method of communication. 
‘‘(2) The date of communication. 
‘‘(3) The identity of the personnel. 
‘‘(4) A summary of the subject matter of the communication. 
‘‘(b) FOLLOW-UP REQUIRED.—The Administrator shall ensure 
that an applicant for disaster assistance receives, by telephone, 
mail, or electronic mail, follow-up communications from the 
Administration at all critical stages of the application process, 
including the following: 
‘‘(1) When the Administration determines that additional 
information or documentation is required to process the applica-
tion. 
‘‘(2) When the Administration determines whether to 
approve or deny the loan. 
‘‘(3) When the primary contact person managing the loan 
application has changed.’’. 
SEC. 12068. INCREASED DEFERMENT PERIOD. 
(a) IN GENERAL.—Section 7 of the Small Business Act (15 
U.S.C. 636) is amended— 
(1) by redesignating subsections (c) and (d) as subsections 
(d) and (e), respectively; and 
(2) by inserting after subsection (e), as so redesignated, 
the following: 
‘‘(f) ADDITIONAL REQUIREMENTS FOR 7(b) LOANS.— 
‘‘(1) INCREASED DEFERMENT AUTHORIZED.— 
‘‘(A) IN GENERAL.—In making loans under subsection 
(b), the Administrator may provide, to the person receiving 
the loan, an option to defer repayment on the loan. 
‘‘(B) PERIOD.—The period of a deferment under 
subparagraph (A) may not exceed 4 years.’’. 
(b) TECHNICAL
AND CONFORMING AMENDMENTS.—The Small 
Business Act (15 U.S.C. 631 et seq.) is amended— 
(1) in section 4(c)— 
(A) in paragraph (1), by striking ‘‘7(c)(2)’’ and inserting 
‘‘7(d)(2)’’; and 
(B) in paragraph (2)—
H. R. 6124—523 
(i) by striking ‘‘7(c)(2)’’ and inserting ‘‘7(d)(2)’’; and 
(ii) by striking ‘‘7(e),’’; and 
(2) in section 7(b), in the undesignated matter following 
paragraph (3)— 
(A) by striking ‘‘That the provisions of paragraph (1) 
of subsection (c)’’ and inserting ‘‘That the provisions of 
paragraph (1) of subsection (d)’’; and 
(B) by striking ‘‘Notwithstanding the provisions of any 
other law the interest rate on the Administration’s share 
of any loan made under subsection (b) except as provided 
in subsection (c),’’ and inserting ‘‘Notwithstanding any 
other provision of law, and except as provided in subsection 
(d), the interest rate on the Administration’s share of any 
loan made under subsection (b)’’. 
SEC. 12069. DISASTER PROCESSING REDUNDANCY. 
The Small Business Act (15 U.S.C. 631 et seq.) is amended 
by inserting after section 38, as added by this Act, the following: 
‘‘SEC. 39. DISASTER PROCESSING REDUNDANCY. 
‘‘(a) IN GENERAL.—The Administrator shall ensure that the 
Administration has in place a facility for disaster loan processing 
that, whenever the Administration’s primary facility for disaster 
loan processing becomes unavailable, is able to take over all disaster 
loan processing from that primary facility within 2 days. 
‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated such sums as may be necessary to carry out 
this section.’’. 
SEC. 12070. NET EARNINGS CLAUSES PROHIBITED. 
Section 7 of the Small Business Act (15 U.S.C. 636) is amended 
by inserting after subsection (f), as added by this Act, the following: 
‘‘(g) NET EARNINGS CLAUSES PROHIBITED FOR 7(b) LOANS.— 
In making loans under subsection (b), the Administrator shall not 
require the borrower to pay any non-amortized amount for the 
first five years after repayment begins.’’. 
SEC. 12071. ECONOMIC INJURY DISASTER LOANS IN CASES OF ICE 
STORMS AND BLIZZARDS. 
Section 3(k)(2) of the Small Business Act (15 U.S.C. 632(k)(2)) 
is amended— 
(1) in subparagraph (A) by striking ‘‘and’’; 
(2) in subparagraph (B) by striking the period at the end 
and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(C) ice storms and blizzards.’’. 
SEC. 12072. DEVELOPMENT AND IMPLEMENTATION OF MAJOR DIS-
ASTER RESPONSE PLAN. 
(a) IN GENERAL.—Not later than 3 months after the date of 
enactment of this Act, the Administrator shall— 
(1) by rule, amend the 2006 Atlantic hurricane season 
disaster response plan of the Administration (in this section 
referred to as the ‘‘disaster response plan’’) to apply to major 
disasters; and 
(2) submit a report to the Committee on Small Business 
and Entrepreneurship of the Senate and the Committee on
H. R. 6124—524 
Small Business of the House of Representatives detailing the 
amendments to the disaster response plan. 
(b) CONTENTS.—The report required under subsection (a)(2) 
shall include— 
(1) any updates or modifications made to the disaster 
response plan since the report regarding the disaster response 
plan submitted to Congress on July 14, 2006; 
(2) a description of how the Administrator plans to use 
and integrate District Office personnel of the Administration 
in the response to a major disaster, including information on 
the use of personnel for loan processing and loan disbursement; 
(3) a description of the disaster scalability model of the 
Administration and on what basis or function the plan is scaled; 
(4) a description of how the agency-wide Disaster Oversight 
Council is structured, which offices comprise its membership, 
and whether the Associate Deputy Administrator for Entrepre-
neurial Development of the Administration is a member; 
(5) a description of how the Administrator plans to coordi-
nate the disaster efforts of the Administration with State and 
local government officials, including recommendations on how 
to better incorporate State initiatives or programs, such as 
State-administered bridge loan programs, into the disaster 
response of the Administration; 
(6) recommendations, if any, on how the Administration 
can better coordinate its disaster response operations with the 
operations of other Federal, State, and local entities; 
(7) any surge plan for the disaster loan program of the 
Administration in effect on or after August 29, 2005 (including 
surge plans for loss verification, loan processing, mailroom, 
customer service or call center operations, and a continuity 
of operations plan); 
(8) the number of full-time equivalent employees and job 
descriptions for the planning and disaster response staff of 
the Administration; 
(9) the in-service and preservice training procedures for 
disaster response staff of the Administration; 
(10) information on the logistical support plans of the 
Administration (including equipment and staffing needs, and 
detailed information on how such plans will be scalable 
depending on the size and scope of the major disaster; 
(11) a description of the findings and recommendations 
of the Administrator, if any, based on a review of the response 
of the Administration to Hurricane Katrina of 2005, Hurricane 
Rita of 2005, and Hurricane Wilma of 2005; and 
(12) a plan for how the Administrator, in consultation 
with the Administrator of the Federal Emergency Management 
Agency, will coordinate the provision of accommodations and 
necessary resources for disaster assistance personnel to effec-
tively perform their responsibilities in the aftermath of a major 
disaster. 
(c) BIENNIAL DISASTER SIMULATION EXERCISE.— 
(1) EXERCISE REQUIRED.—The Administrator shall conduct 
a disaster simulation exercise at least once every 2 fiscal years. 
The exercise shall include the participation of, at a minimum, 
not less than 50 percent of the individuals in the disaster 
reserve corps and shall test, at maximum capacity, all of the 
information technology and telecommunications systems of the
H. R. 6124—525 
Administration that are vital to the activities of the Administra-
tion during such a disaster. 
(2) REPORT.—The Administrator shall include a report on 
the disaster simulation exercises conducted under paragraph 
(1) each time the Administration submits a report required 
under section 43 of the Small Business Act, as added by this 
Act. 
SEC. 12073. DISASTER PLANNING RESPONSIBILITIES. 
(a) ASSIGNMENT OF SMALL BUSINESS ADMINISTRATION DISASTER 
PLANNING RESPONSIBILITIES.—The disaster planning function of the 
Administration shall be assigned to an individual appointed by 
the Administrator who— 
(1) is not an employee of the Office of Disaster Assistance 
of the Administration; 
(2) has proven management ability; 
(3) has substantial knowledge in the field of disaster readi-
ness and emergency response; and 
(4) has demonstrated significant experience in the area 
of disaster planning. 
(b) RESPONSIBILITIES.—The individual assigned the disaster 
planning function of the Administration shall report directly and 
solely to the Administrator and shall be responsible for— 
(1) creating, maintaining, and implementing the com-
prehensive disaster response plan of the Administration 
described in section 12072; 
(2) ensuring there are in-service and pre-service training 
procedures for the disaster response staff of the Administration; 
(3) coordinating and directing the training exercises of the 
Administration relating to disasters, including disaster simula-
tion exercises and disaster exercises coordinated with other 
government departments and agencies; and 
(4) other responsibilities relevant to disaster planning and 
readiness, as determined by the Administrator. 
(c) 
COORDINATION.—In 
carrying 
out 
the 
responsibilities 
described in subsection (b), the individual assigned the disaster 
planning function of the Administration shall coordinate with— 
(1) the Office of Disaster Assistance of the Administration; 
(2) the Administrator of the Federal Emergency Manage-
ment Agency; and 
(3) other Federal, State, and local disaster planning offices, 
as necessary. 
(d) RESOURCES.—The Administrator shall ensure that the indi-
vidual assigned the disaster planning function of the Administration 
has adequate resources to carry out the duties under this section. 
(e) REPORT.—Not later than 30 days after the date of enactment 
of this Act, the Administrator shall submit to the Committee on 
Small Business and Entrepreneurship of the Senate and the Com-
mittee on Small Business of the House of Representatives a report 
containing— 
(1) a description of the actions of the Administrator to 
assign an individual the disaster planning function of the 
Administration; 
(2) information detailing the background and expertise of 
the individual assigned; and 
(3) information on the status of the implementation of 
the responsibilities described in subsection (b).
H. R. 6124—526 
SEC. 12074. ASSIGNMENT OF EMPLOYEES OF THE OFFICE OF DISASTER 
ASSISTANCE AND DISASTER CADRE. 
(a) IN GENERAL.—Section 7(b) of the Small Business Act (15 
U.S.C. 636(b)) is amended by inserting immediately after paragraph 
(6), as added by this Act, the following: 
‘‘(7) DISASTER ASSISTANCE EMPLOYEES.— 
‘‘(A) IN GENERAL.—In carrying out this section, the 
Administrator may, where practicable, ensure that the 
number of full-time equivalent employees— 
‘‘(i) in the Office of the Disaster Assistance is not 
fewer than 800; and 
‘‘(ii) in the Disaster Cadre of the Administration 
is not fewer than 1,000. 
‘‘(B) REPORT.—In carrying out this subsection, if the 
number of full-time employees for either the Office of Dis-
aster Assistance or the Disaster Cadre of the Administra-
tion is below the level described in subparagraph (A) for 
that office, not later than 21 days after the date on which 
that staffing level decreased below the level described in 
subparagraph (A), the Administrator shall submit to the 
Committee on Appropriations and the Committee on Small 
Business and Entrepreneurship of the Senate and the Com-
mittee on Appropriations and Committee on Small Business 
of the House of Representatives, a report— 
‘‘(i) detailing staffing levels on that date; 
‘‘(ii) requesting, if practicable and determined 
appropriate by the Administrator, additional funds for 
additional employees; and 
‘‘(iii) containing such additional information, as 
determined appropriate by the Administrator.’’. 
SEC. 12075. COMPREHENSIVE DISASTER RESPONSE PLAN. 
The Small Business Act (15 U.S.C. 631 et seq.) is amended 
inserting after section 39, as added by this Act, the following: 
‘‘SEC. 40. COMPREHENSIVE DISASTER RESPONSE PLAN. 
‘‘(a) PLAN REQUIRED.—The Administrator shall develop, imple-
ment, or maintain a comprehensive written disaster response plan. 
The plan shall include the following: 
‘‘(1) For each region of the Administration, a description 
of the disasters most likely to occur in that region. 
‘‘(2) For each disaster described under paragraph (1)— 
‘‘(A) an assessment of the disaster; 
‘‘(B) an assessment of the demand for Administration 
assistance most likely to occur in response to the disaster; 
‘‘(C) an assessment of the needs of the Administration, 
with respect to such resources as information technology, 
telecommunications, human resources, and office space, to 
meet the demand referred to in subparagraph (B); and 
‘‘(D) guidelines pursuant to which the Administration 
will coordinate with other Federal agencies and with State 
and local authorities to best respond to the demand referred 
to in subparagraph (B) and to best use the resources 
referred to in that subparagraph. 
‘‘(b) COMPLETION; REVISION.—The first plan required by sub-
section (a) shall be completed not later than 180 days after the 
date of the enactment of this section. Thereafter, the Administrator
H. R. 6124—527 
shall update the plan on an annual basis and following any major 
disaster relating to which the Administrator declares eligibility 
for additional disaster assistance under section 7(b)(9). 
‘‘(c) KNOWLEDGE REQUIRED.—The Administrator shall carry out 
subsections (a) and (b) through an individual with substantial 
knowledge in the field of disaster readiness and emergency 
response. 
‘‘(d) REPORT.—The Administrator shall include a report on the 
plan whenever the Administration submits the report required by 
section 43.’’. 
SEC. 12076. PLANS TO SECURE SUFFICIENT OFFICE SPACE. 
The Small Business Act is amended by inserting after section 
40, as added by this Act, the following: 
‘‘SEC. 41. PLANS TO SECURE SUFFICIENT OFFICE SPACE. 
‘‘(a) PLANS REQUIRED.—The Administrator shall develop long- 
term plans to secure sufficient office space to accommodate an 
expanded workforce in times of disaster. 
‘‘(b) REPORT.—The Administrator shall include a report on the 
plans developed under subsection (a) each time the Administration 
submits a report required under section 43.’’. 
SEC. 12077. APPLICANTS THAT HAVE BECOME A MAJOR SOURCE OF 
EMPLOYMENT 
DUE 
TO 
CHANGED 
ECONOMIC 
CIR-
CUMSTANCES. 
Section 7(b)(3)(E) of the Small Business Act (15 U.S.C. 
636(b)(3)(E)) is amended by inserting after ‘‘constitutes’’ the fol-
lowing: ‘‘, or have become due to changed economic circumstances,’’. 
SEC. 12078. DISASTER LOAN AMOUNTS. 
(a) INCREASED LOAN CAPS.—Section 7(b) of the Small Business 
Act (15 U.S.C. 636(b)) is amended by inserting immediately after 
paragraph (7), as added by this Act, the following: 
‘‘(8) INCREASED LOAN CAPS.— 
‘‘(A) AGGREGATE LOAN AMOUNTS.—Except as provided 
in subparagraph (B), and notwithstanding any other provi-
sion of law, the aggregate loan amount outstanding and 
committed to a borrower under this subsection may not 
exceed $2,000,000. 
‘‘(B) WAIVER AUTHORITY.—The Administrator may, at 
the discretion of the Administrator, increase the aggregate 
loan amount under subparagraph (A) for loans relating 
to a disaster to a level established by the Administrator, 
based on appropriate economic indicators for the region 
in which that disaster occurred.’’. 
(b) DISASTER MITIGATION.— 
(1) IN GENERAL.—Section 7(b)(1)(A) of the Small Business 
Act (15 U.S.C. 636(b)(1)(A)) is amended by inserting ‘‘of the 
aggregate costs of such damage or destruction (whether or 
not compensated for by insurance or otherwise)’’ after ‘‘20 per 
centum’’. 
(2) EFFECTIVE DATE.—The amendment made by paragraph 
(1) shall apply with respect to a loan or guarantee made after 
the date of enactment of this Act. 
(c) TECHNICAL AMENDMENTS.—Section 7(b) of the Small Busi-
ness Act (15 U.S.C. 636(b)) is amended—
H. R. 6124—528 
(1) in the matter preceding paragraph (1), by striking ‘‘the, 
Administration’’ and inserting ‘‘the Administration’’; and 
(2) in the undesignated matter at the end— 
(A) by striking ‘‘, (2), and (4)’’ and inserting ‘‘and (2)’’; 
and 
(B) by striking ‘‘, (2), or (4)’’ and inserting ‘‘(2)’’. 
SEC. 12079. SMALL BUSINESS BONDING THRESHOLD. 
(a) IN GENERAL.—Except as provided in subsection (b), and 
notwithstanding any other provision of law, for any procurement 
related to a major disaster, the Administrator may, upon such 
terms and conditions as the Administrator may prescribe, guarantee 
and enter into commitments to guarantee any surety against loss 
resulting from a breach of the terms of a bid bond, payment bond, 
performance bond, or bonds ancillary thereto, by a principal on 
any total work order or contract amount at the time of bond execu-
tion that does not exceed $5,000,000. 
(b) INCREASE OF AMOUNT.—Upon request of the head of any 
Federal agency other than the Administration involved in 
reconstruction efforts in response to a major disaster, the Adminis-
trator may guarantee and enter into a commitment to guarantee 
any security against loss under subsection (a) on any total work 
order or contract amount at the time of bond execution that does 
not exceed $10,000,000. 
(c) LIMITATION ON USE OF OTHER FUNDS.—The Administrator 
may carry out this section only with amounts appropriated in 
advance specifically to carry out this section. 
PART II—DISASTER LENDING 
SEC. 12081. ELIGIBILITY FOR ADDITIONAL DISASTER ASSISTANCE. 
Section 7(b) of the Small Business Act (15 U.S.C. 636(b)) is 
amended by inserting immediately after paragraph (8), as added 
by this Act, the following: 
‘‘(9) DECLARATION OF ELIGIBILITY FOR ADDITIONAL DISASTER 
ASSISTANCE.— 
‘‘(A) IN GENERAL.—If the President declares a major 
disaster, the Administrator may declare eligibility for addi-
tional disaster assistance in accordance with this para-
graph. 
‘‘(B) THRESHOLD.—A major disaster for which the 
Administrator declares eligibility for additional disaster 
assistance under this paragraph shall— 
‘‘(i) have resulted in extraordinary levels of casual-
ties or damage or disruption severely affecting the 
population (including mass evacuations), infrastruc-
ture, environment, economy, national morale, or 
government functions in an area; 
‘‘(ii) be comparable to the description of a cata-
strophic incident in the National Response Plan of 
the Administration, or any successor thereto, unless 
there is no successor to such plan, in which case this 
clause shall have no force or effect; and 
‘‘(iii) be of such size and scope that— 
‘‘(I) the disaster assistance programs under 
the other paragraphs under this subsection are
H. R. 6124—529 
incapable of providing adequate and timely assist-
ance to individuals or business concerns located 
within the disaster area; or 
‘‘(II) a significant number of business concerns 
outside the disaster area have suffered disaster- 
related substantial economic injury as a result of 
the incident.’’. 
SEC. 12082. ADDITIONAL ECONOMIC INJURY DISASTER LOAN ASSIST-
ANCE. 
Paragraph (9) of section 7(b) of the Small Business Act (15 
U.S.C. 636(b)), as added by section 12081, is amended by adding 
at the end the following: 
‘‘(C) ADDITIONAL
ECONOMIC
INJURY
DISASTER
LOAN 
ASSISTANCE.— 
‘‘(i) IN
GENERAL.—If the Administrator declares 
eligibility for additional disaster assistance under this 
paragraph, the Administrator may make such loans 
under this subparagraph (either directly or in coopera-
tion with banks or other lending institutions through 
agreements to participate on an immediate or deferred 
basis) as the Administrator determines appropriate to 
eligible small business concerns located anywhere in 
the United States. 
‘‘(ii) PROCESSING TIME.— 
‘‘(I) IN GENERAL.—If the Administrator deter-
mines that the average processing time for applica-
tions for disaster loans under this subparagraph 
relating to a specific major disaster is more than 
15 days, the Administrator shall give priority to 
the processing of such applications submitted by 
eligible small business concerns located inside the 
disaster area, until the Administrator determines 
that the average processing time for such applica-
tions is not more than 15 days. 
‘‘(II) SUSPENSION OF APPLICATIONS FROM OUT-
SIDE DISASTER AREA.—If the Administrator deter-
mines that the average processing time for applica-
tions for disaster loans under this subparagraph 
relating to a specific major disaster is more than 
30 days, the Administrator shall suspend the proc-
essing of such applications submitted by eligible 
small business concerns located outside the dis-
aster area, until the Administrator determines 
that the average processing time for such applica-
tions is not more than 15 days. 
‘‘(iii) LOAN TERMS.—A loan under this subpara-
graph shall be made on the same terms as a loan 
under paragraph (2). 
‘‘(D) DEFINITIONS.—In this paragraph— 
‘‘(i) the term ‘disaster area’ means the area for 
which the applicable major disaster was declared; 
‘‘(ii) the term ‘disaster-related substantial economic 
injury’ means economic harm to a business concern 
that results in the inability of the business concern 
to— 
‘‘(I) meet its obligations as it matures;
H. R. 6124—530 
‘‘(II) meet its ordinary and necessary operating 
expenses; or 
‘‘(III) market, produce, or provide a product 
or service ordinarily marketed, produced, or pro-
vided by the business concern because the business 
concern relies on materials from the disaster area 
or sells or markets in the disaster area; and 
‘‘(iii) the term ‘eligible small business concern’ 
means a small business concern— 
‘‘(I) that has suffered disaster-related substan-
tial economic injury as a result of the applicable 
major disaster; and 
‘‘(II)(aa) for which not less than 25 percent 
of the market share of that small business concern 
is from business transacted in the disaster area; 
‘‘(bb) for which not less than 25 percent of 
an input into a production process of that small 
business concern is from the disaster area; or 
‘‘(cc) that relies on a provider located in the 
disaster area for a service that is not readily avail-
able elsewhere.’’. 
SEC. 12083. PRIVATE DISASTER LOANS. 
(a) IN GENERAL.—Section 7 of the Small Business Act (15 
U.S.C. 636) is amended by inserting after subsection (b) the fol-
lowing: 
‘‘(c) PRIVATE DISASTER LOANS.— 
‘‘(1) DEFINITIONS.—In this subsection— 
‘‘(A) the term ‘disaster area’ means any area for which 
the President declared a major disaster relating to which 
the Administrator declares eligibility for additional disaster 
assistance under subsection (b)(9), during the period of 
that major disaster declaration; 
‘‘(B) the term ‘eligible individual’ means an individual 
who is eligible for disaster assistance under subsection 
(b)(1) relating to a major disaster relating to which the 
Administrator declares eligibility for additional disaster 
assistance under subsection (b)(9); 
‘‘(C) the term ‘eligible small business concern’ means 
a business concern that is— 
‘‘(i) a small business concern, as defined under 
this Act; or 
‘‘(ii) a small business concern, as defined in section 
103 of the Small Business Investment Act of 1958; 
‘‘(D) the term ‘preferred lender’ means a lender partici-
pating in the Preferred Lender Program; 
‘‘(E) the term ‘Preferred Lender Program’ has the 
meaning given that term in subsection (a)(2)(C)(ii); and 
‘‘(F) the term ‘qualified private lender’ means any pri-
vately-owned bank or other lending institution that— 
‘‘(i) is not a preferred lender; and 
‘‘(ii) the Administrator determines meets the cri-
teria established under paragraph (10). 
‘‘(2) PROGRAM REQUIRED.—The Administrator shall carry 
out a program, to be known as the Private Disaster Assistance 
program, under which the Administration may guarantee 
timely payment of principal and interest, as scheduled, on
H. R. 6124—531 
any loan made to an eligible small business concern located 
in a disaster area and to an eligible individual. 
‘‘(3) USE OF LOANS.—A loan guaranteed by the Adminis-
trator under this subsection may be used for any purpose 
authorized under subsection (b). 
‘‘(4) ONLINE APPLICATIONS.— 
‘‘(A) ESTABLISHMENT.—The Administrator may estab-
lish, directly or through an agreement with another entity, 
an online application process for loans guaranteed under 
this subsection. 
‘‘(B) OTHER FEDERAL ASSISTANCE.—The Administrator 
may coordinate with the head of any other appropriate 
Federal agency so that any application submitted through 
an online application process established under this para-
graph may be considered for any other Federal assistance 
program for disaster relief. 
‘‘(C) CONSULTATION.—In establishing an online applica-
tion process under this paragraph, the Administrator shall 
consult with appropriate persons from the public and pri-
vate sectors, including private lenders. 
‘‘(5) MAXIMUM AMOUNTS.— 
‘‘(A) GUARANTEE
PERCENTAGE.—The Administrator 
may guarantee not more than 85 percent of a loan under 
this subsection. 
‘‘(B) LOAN AMOUNT.—The maximum amount of a loan 
guaranteed under this subsection shall be $2,000,000. 
‘‘(6) TERMS
AND
CONDITIONS.—A loan guaranteed under 
this subsection shall be made under the same terms and condi-
tions as a loan under subsection (b). 
‘‘(7) LENDERS.— 
‘‘(A) IN GENERAL.—A loan guaranteed under this sub-
section made to— 
‘‘(i) a qualified individual may be made by a pre-
ferred lender; and 
‘‘(ii) a qualified small business concern may be 
made by a qualified private lender or by a preferred 
lender that also makes loans to qualified individuals. 
‘‘(B) COMPLIANCE.—If the Administrator determines 
that a preferred lender knowingly failed to comply with 
the underwriting standards for loans guaranteed under 
this subsection or violated the terms of the standard oper-
ating procedure agreement between that preferred lender 
and the Administration, the Administrator shall do 1 or 
more of the following: 
‘‘(i) Exclude the preferred lender from participating 
in the program under this subsection. 
‘‘(ii) Exclude the preferred lender from partici-
pating in the Preferred Lender Program for a period 
of not more than 5 years. 
‘‘(8) FEES.— 
‘‘(A) IN GENERAL.—The Administrator may not collect 
a guarantee fee under this subsection. 
‘‘(B) ORIGINATION FEE.—The Administrator may pay 
a qualified private lender or preferred lender an origination 
fee for a loan guaranteed under this subsection in an 
amount agreed upon in advance between the qualified pri-
vate lender or preferred lender and the Administrator.
H. R. 6124—532 
‘‘(9) DOCUMENTATION.—A qualified private lender or pre-
ferred lender may use its own loan documentation for a loan 
guaranteed by the Administrator under this subsection, to the 
extent authorized by the Administrator. The ability of a lender 
to use its own loan documentation for a loan guaranteed under 
this subsection shall not be considered part of the criteria 
for becoming a qualified private lender under the regulations 
promulgated under paragraph (10). 
‘‘(10) IMPLEMENTATION REGULATIONS.— 
‘‘(A) IN
GENERAL.—Not later than 1 year after the 
date of enactment of the Small Business Disaster Response 
and Loan Improvements Act of 2008, the Administrator 
shall issue final regulations establishing permanent criteria 
for qualified private lenders. 
‘‘(B) REPORT TO CONGRESS.—Not later than 6 months 
after the date of enactment of the Small Business Disaster 
Response and Loan Improvements Act of 2008, the 
Administrator shall submit a report on the progress of 
the regulations required by subparagraph (A) to the Com-
mittee on Small Business and Entrepreneurship of the 
Senate and the Committee on Small Business of the House 
of Representatives. 
‘‘(11) AUTHORIZATION OF APPROPRIATIONS.— 
‘‘(A) IN GENERAL.—Amounts necessary to carry out this 
subsection shall be made available from amounts appro-
priated to the Administration to carry out subsection (b). 
‘‘(B) AUTHORITY TO REDUCE INTEREST RATES AND OTHER 
TERMS
AND
CONDITIONS.—Funds appropriated to the 
Administration to carry out this subsection, may be used 
by the Administrator to meet the loan terms and conditions 
specified in paragraph (6). 
‘‘(12) PURCHASE OF LOANS.—The Administrator may enter 
into an agreement with a qualified private lender or preferred 
lender to purchase any loan guaranteed under this subsection.’’. 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall apply to any major disaster declared on or after the date 
of enactment of this Act. 
SEC. 12084. IMMEDIATE DISASTER ASSISTANCE PROGRAM. 
The Small Business Act is amended by inserting after section 
41, as added by this Act, the following: 
‘‘SEC. 42. IMMEDIATE DISASTER ASSISTANCE PROGRAM. 
‘‘(a) PROGRAM REQUIRED.—The Administrator shall carry out 
a program, to be known as the Immediate Disaster Assistance 
program, under which the Administration participates on a deferred 
(guaranteed) basis in 85 percent of the balance of the financing 
outstanding at the time of disbursement of the loan if such balance 
is less than or equal to $25,000 for businesses affected by a disaster. 
‘‘(b) ELIGIBILITY REQUIREMENT.—To receive a loan guaranteed 
under subsection (a), the applicant shall also apply for, and meet 
basic eligibility standards for, a loan under subsection (b) or (c) 
of section 7. 
‘‘(c) USE OF PROCEEDS.—A person who receives a loan under 
subsection (b) or (c) of section 7 shall use the proceeds of that 
loan to repay all loans guaranteed under subsection (a), if any, 
before using the proceeds for any other purpose. 
‘‘(d) LOAN TERMS.—
H. R. 6124—533 
‘‘(1) NO PREPAYMENT PENALTY.—There shall be no prepay-
ment penalty on a loan guaranteed under subsection (a). 
‘‘(2) REPAYMENT.—A person who receives a loan guaranteed 
under subsection (a) and who is disapproved for a loan under 
subsection (b) or (c) of section 7, as the case may be, shall 
repay the loan guaranteed under subsection (a) not later than 
the date established by the Administrator, which may not be 
earlier than 10 years after the date on which the loan guaran-
teed under subsection is disbursed. 
‘‘(e) APPROVAL
OR
DISAPPROVAL.—The Administrator shall 
ensure that each applicant for a loan under the program receives 
a decision approving or disapproving of the application within 36 
hours after the Administration receives the application.’’. 
SEC. 12085. EXPEDITED DISASTER ASSISTANCE LOAN PROGRAM. 
(a) DEFINITION.—In this section, the term ‘‘program’’ means 
the expedited disaster assistance business loan program established 
under subsection (b). 
(b) CREATION OF PROGRAM.—The Administrator shall take such 
administrative action as is necessary to establish and implement 
an expedited disaster assistance business loan program under which 
the Administration may, on an expedited basis, guarantee timely 
payment of principal and interest, as scheduled on any loan made 
to an eligible small business concern under paragraph (9) of section 
7(b) of the Small Business Act (15 U.S.C. 636(b)), as added by 
this Act. 
(c) CONSULTATION REQUIRED.—In establishing the program, the 
Administrator shall consult with— 
(1) appropriate personnel of the Administration (including 
District Office personnel of the Administration); 
(2) appropriate technical assistance providers (including 
small business development centers); 
(3) appropriate lenders and credit unions; 
(4) the Committee on Small Business and Entrepreneurship 
of the Senate; and 
(5) the Committee on Small Business of the House of Rep-
resentatives. 
(d) RULES.— 
(1) IN
GENERAL.—Not later than 1 year after the date 
of enactment of this Act, the Administrator shall issue rules 
in final form establishing and implementing the program in 
accordance with this section. Such rules shall apply as provided 
for in this section, beginning 90 days after their issuance in 
final form. 
(2) CONTENTS.—The rules promulgated under paragraph 
(1) shall— 
(A) identify whether appropriate uses of funds under 
the program may include— 
(i) paying employees; 
(ii) paying bills and other financial obligations; 
(iii) making repairs; 
(iv) purchasing inventory; 
(v) restarting or operating a small business concern 
in the community in which it was conducting oper-
ations prior to the applicable major disaster, or to 
a neighboring area, county, or parish in the disaster 
area; or
H. R. 6124—534 
(vi) covering additional costs until the small busi-
ness concern is able to obtain funding through insur-
ance claims, Federal assistance programs, or other 
sources; and 
(B) set the terms and conditions of any loan made 
under the program, subject to paragraph (3). 
(3) TERMS AND CONDITIONS.—A loan guaranteed by the 
Administration under this section— 
(A) shall be for not more than $150,000; 
(B) shall be a short-term loan, not to exceed 180 days, 
except that the Administrator may extend such term as 
the Administrator determines necessary or appropriate on 
a case-by-case basis; 
(C) shall have an interest rate not to exceed 300 basis 
points above the interest rate established by the Board 
of Governors of the Federal Reserve System that 1 bank 
charges another for reserves that are lent on an overnight 
basis on the date the loan is made; 
(D) shall have no prepayment penalty; 
(E) may only be made to a borrower that meets the 
requirements for a loan under section 7(b) of the Small 
Business Act (15 U.S.C. 636(b)), as amended by this Act; 
(F) may be refinanced as part of any subsequent dis-
aster assistance provided under section 7(b) of the Small 
Business Act (15 U.S.C. 636(b)), as amended by this Act; 
(G) may receive expedited loss verification and loan 
processing, if the applicant is— 
(i) a major source of employment in the disaster 
area (which shall be determined in the same manner 
as under section 7(b)(3)(B) of the Small Business Act 
(15 U.S.C. 636(b)(3)(B))); or 
(ii) vital to recovery efforts in the region (including 
providing 
debris 
removal 
services, 
manufactured 
housing, or building materials); and 
(H) shall be subject to such additional terms as the 
Administrator determines necessary or appropriate. 
(e) REPORT TO CONGRESS.—Not later than 5 months after the 
date of enactment of this Act, the Administrator shall report to 
the Committee on Small Business and Entrepreneurship of the 
Senate and the Committee on Small Business of the House of 
Representatives on the progress of the Administrator in establishing 
the program. 
(f) AUTHORIZATION.—There are authorized to be appropriated 
to the Administrator such sums as are necessary to carry out 
this section. 
SEC. 12086. GULF COAST DISASTER LOAN REFINANCING PROGRAM. 
(a) IN GENERAL.—The Administrator may carry out a program 
to refinance Gulf Coast disaster loans (in this section referred 
to as the ‘‘program’’). 
(b) TERMS.—The terms of a Gulf Coast disaster loan refinanced 
under the program shall be identical to the terms of the original 
loan, except that the Administrator may provide an option to defer 
repayment on the loan. A deferment under the program shall end 
not later than 4 years after the date on which the initial disburse-
ment under the original loan was made.
H. R. 6124—535 
(c) AMOUNT.—The amount of a Gulf Coast disaster loan 
refinanced under the program shall not exceed the amount of the 
original loan. 
(d) DISCLOSURE OF ACCRUED INTEREST.—If the Administrator 
provides an option to defer repayment under the program, the 
Administrator shall disclose the accrued interest that must be paid 
under the option. 
(e) DEFINITION.—In this section, the term ‘‘Gulf Coast disaster 
loan’’ means a loan— 
(1) made under section 7(b) of the Small Business Act 
(15 U.S.C. 636(b)); 
(2) in response to Hurricane Katrina of 2005, Hurricane 
Rita of 2005, or Hurricane Wilma of 2005; and 
(3) to a small business concern located in a county or 
parish designated by the Administrator as a disaster area by 
reason of a hurricane described in paragraph (2) under disaster 
declaration 10176, 10177, 10178, 10179, 10180, 10181, 10203, 
10204, 10205, 10206, 10222, or 10223. 
(f) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated such sums as may be necessary to carry out 
this section. 
PART III—MISCELLANEOUS 
SEC. 12091. REPORTS ON DISASTER ASSISTANCE. 
(a) MONTHLY ACCOUNTING REPORT TO CONGRESS.— 
(1) REPORTING REQUIREMENTS.—Not later than the fifth 
business day of each month during the applicable period for 
a major disaster, the Administrator shall submit to the Com-
mittee on Small Business and Entrepreneurship and the Com-
mittee on Appropriations of the Senate and to the Committee 
on Small Business and the Committee on Appropriations of 
the House of Representatives a report on the operation of 
the disaster loan program authorized under section 7 of the 
Small Business Act (15 U.S.C. 636) for that major disaster 
during the preceding month. 
(2) CONTENTS.—Each report submitted under paragraph 
(1) shall include— 
(A) the daily average lending volume, in number of 
loans and dollars, and the percent by which each category 
has increased or decreased since the previous report under 
paragraph (1); 
(B) the weekly average lending volume, in number 
of loans and dollars, and the percent by which each category 
has increased or decreased since the previous report under 
paragraph (1); 
(C) the amount of funding spent over the month for 
loans, both in appropriations and program level, and the 
percent by which each category has increased or decreased 
since the previous report under paragraph (1); 
(D) the amount of funding available for loans, both 
in appropriations and program level, and the percent by 
which each category has increased or decreased since the 
previous report under paragraph (1), noting the source 
of any additional funding; 
(E) an estimate of how long the available funding 
for such loans will last, based on the spending rate;
H. R. 6124—536 
(F) the amount of funding spent over the month for 
staff, along with the number of staff, and the percent 
by which each category has increased or decreased since 
the previous report under paragraph (1); 
(G) the amount of funding spent over the month for 
administrative costs, and the percent by which such 
spending has increased or decreased since the previous 
report under paragraph (1); 
(H) the amount of funding available for salaries and 
expenses combined, and the percent by which such funding 
has increased or decreased since the previous report under 
paragraph (1), noting the source of any additional funding; 
and 
(I) an estimate of how long the available funding for 
salaries and expenses will last, based on the spending 
rate. 
(b) WEEKLY DISASTER UPDATES
TO CONGRESS
FOR PRESI-
DENTIALLY DECLARED DISASTERS.— 
(1) IN
GENERAL.—Each week during a disaster update 
period, the Administration shall submit to the Committee on 
Small Business and Entrepreneurship of the Senate and to 
the Committee on Small Business of the House of Representa-
tives a report on the operation of the disaster loan program 
of the Administration for the area in which the President 
declared a major disaster. 
(2) CONTENTS.—Each report submitted under paragraph 
(1) shall include— 
(A) the number of Administration staff performing loan 
processing, field inspection, and other duties for the 
declared disaster, and the allocations of such staff in the 
disaster field offices, disaster recovery centers, workshops, 
and other Administration offices nationwide; 
(B) the daily number of applications received from 
applicants in the relevant area, as well as a breakdown 
of such figures by State; 
(C) the daily number of applications pending applica-
tion entry from applicants in the relevant area, as well 
as a breakdown of such figures by State; 
(D) the daily number of applications withdrawn by 
applicants in the relevant area, as well as a breakdown 
of such figures by State; 
(E) the daily number of applications summarily 
declined by the Administration from applicants in the rel-
evant area, as well as a breakdown of such figures by 
State; 
(F) the daily number of applications declined by the 
Administration from applicants in the relevant area, as 
well as a breakdown of such figures by State; 
(G) the daily number of applications in process from 
applicants in the relevant area, as well as a breakdown 
of such figures by State; 
(H) the daily number of applications approved by the 
Administration from applicants in the relevant area, as 
well as a breakdown of such figures by State; 
(I) the daily dollar amount of applications approved 
by the Administration from applicants in the relevant area, 
as well as a breakdown of such figures by State;
H. R. 6124—537 
(J) the daily amount of loans dispersed, both partially 
and fully, by the Administration to applicants in the rel-
evant area, as well as a breakdown of such figures by 
State; 
(K) the daily dollar amount of loans disbursed, both 
partially and fully, from the relevant area, as well as 
a breakdown of such figures by State; 
(L) the number of applications approved, including 
dollar amount approved, as well as applications partially 
and fully disbursed, including dollar amounts, since the 
last report under paragraph (1); and 
(M) the declaration date, physical damage closing date, 
economic injury closing date, and number of counties 
included in the declaration of a major disaster. 
(c) PERIODS WHEN ADDITIONAL DISASTER ASSISTANCE IS MADE 
AVAILABLE.— 
(1) IN GENERAL.—During any period for which the Adminis-
trator declares eligibility for additional disaster assistance 
under paragraph (9) of section 7(b) of the Small Business Act 
(15 U.S.C. 632(b)), as amended by this Act, the Administrator 
shall, on a monthly basis, submit to the Committee on Small 
Business and Entrepreneurship of the Senate and to the Com-
mittee on Small Business of the House of Representatives a 
report on the disaster assistance operations of the Administra-
tion with respect to the applicable major disaster. 
(2) CONTENTS.—Each report submitted under paragraph 
(1) shall specify— 
(A) the number of applications for disaster assistance 
distributed; 
(B) the number of applications for disaster assistance 
received; 
(C) the average time for the Administration to approve 
or disapprove an application for disaster assistance; 
(D) the amount of disaster loans approved; 
(E) the average time for initial disbursement of disaster 
loan proceeds; and 
(F) the amount of disaster loan proceeds disbursed. 
(d) NOTICE OF THE NEED FOR SUPPLEMENTAL FUNDS.—On the 
same date that the Administrator notifies any committee of the 
Senate or the House of Representatives that supplemental funding 
is necessary for the disaster loan program of the Administration 
in any fiscal year, the Administrator shall notify in writing the 
Committee on Small Business and Entrepreneurship of the Senate 
and the Committee on Small Business of the House of Representa-
tives regarding the need for supplemental funds for that loan pro-
gram. 
(e) REPORT ON CONTRACTING.— 
(1) IN GENERAL.—Not later than 6 months after the date 
on which the President declares a major disaster, and every 
6 months thereafter until the date that is 18 months after 
the date on which the major disaster was declared, the Adminis-
trator shall submit a report to the Committee on Small Business 
and Entrepreneurship of the Senate and to the Committee 
on Small Business of the House of Representatives regarding 
Federal contracts awarded as a result of that major disaster. 
(2) CONTENTS.—Each report submitted under paragraph 
(1) shall include—
H. R. 6124—538 
(A) the total number of contracts awarded as a result 
of that major disaster; 
(B) the total number of contracts awarded to small 
business concerns as a result of that major disaster; 
(C) the total number of contracts awarded to women 
and minority-owned businesses as a result of that major 
disaster; and 
(D) the total number of contracts awarded to local 
businesses as a result of that major disaster. 
(f) REPORT ON LOAN APPROVAL RATE.— 
(1) IN GENERAL.—Not later than 6 months after the date 
of enactment of this Act, the Administrator shall submit a 
report to the Committee on Small Business and Entrepreneur-
ship of the Senate and the Committee on Small Business of 
the House of Representatives detailing how the Administration 
can improve the processing of applications under the disaster 
loan program of the Administration. 
(2) CONTENTS.—The report submitted under paragraph (1) 
shall include— 
(A) recommendations, if any, regarding— 
(i) staffing levels during a major disaster; 
(ii) how to improve the process for processing, 
approving, and disbursing loans under the disaster 
loan program of the Administration, to ensure that 
the maximum assistance is provided to victims in a 
timely manner; 
(iii) the viability of using alternative methods for 
assessing the ability of an applicant to repay a loan, 
including the credit score of the applicant on the day 
before the date on which the disaster for which the 
applicant is seeking assistance was declared; 
(iv) methods, if any, for the Administration to expe-
dite loss verification and loan processing of disaster 
loans during a major disaster for businesses affected 
by, and located in the area for which the President 
declared, the major disaster that are a major source 
of employment in the area or are vital to recovery 
efforts in the region (including providing debris 
removal services, manufactured housing, or building 
materials); 
(v) legislative changes, if any, needed to implement 
findings from the Accelerated Disaster Response Initia-
tive of the Administration; and 
(vi) a description of how the Administration plans 
to integrate and coordinate the response to a major 
disaster with the technical assistance programs of the 
Administration; and 
(B) the plans of the Administrator for implementing 
any recommendation made under subparagraph (A). 
(g) REPORTS ON DISASTER ASSISTANCE.—The Small Business 
Act is amended by inserting after section 42, as added by this 
Act, the following: 
‘‘SEC. 43. ANNUAL REPORTS ON DISASTER ASSISTANCE. 
‘‘Not later than 45 days after the end of a fiscal year, the 
Administrator shall submit to the Committee on Small Business 
and Entrepreneurship of the Senate and the Committee on Small
H. R. 6124—539 
Business of the House of Representatives a report on the disaster 
assistance operations of the Administration for that fiscal year. 
The report shall— 
‘‘(1) specify the number of Administration personnel 
involved in such operations; 
‘‘(2) describe any material changes to those operations, 
such as changes to technologies used or to personnel responsibil-
ities; 
‘‘(3) describe and assess the effectiveness of the Administra-
tion in responding to disasters during that fiscal year, including 
a description of the number and amounts of loans made for 
damage and for economic injury; and 
‘‘(4) describe the plans of the Administration for preparing 
to respond to disasters during the next fiscal year.’’. 
TITLE XIII—COMMODITY FUTURES 
SEC. 13001. SHORT TITLE. 
This title may be cited as the ‘‘CFTC Reauthorization Act 
of 2008’’. 
Subtitle A—General Provisions 
SEC. 13101. COMMISSION AUTHORITY OVER AGREEMENTS, CONTRACTS 
OR TRANSACTIONS IN FOREIGN CURRENCY. 
(a) IN GENERAL.—Section 2(c)(2) of the Commodity Exchange 
Act (7 U.S.C. 2(c)(2)) is amended by striking subparagraphs (B) 
and (C) and inserting the following: 
‘‘(B) AGREEMENTS, CONTRACTS, AND TRANSACTIONS IN 
RETAIL FOREIGN CURRENCY.— 
‘‘(i) This Act applies to, and the Commission shall 
have jurisdiction over, an agreement, contract, or 
transaction in foreign currency that— 
‘‘(I) is a contract of sale of a commodity for 
future delivery (or an option on such a contract) 
or an option (other than an option executed or 
traded on a national securities exchange registered 
pursuant to section 6(a) of the Securities Exchange 
Act of 1934 (15 U.S.C. 78f(a))); and 
‘‘(II) is offered to, or entered into with, a person 
that is not an eligible contract participant, unless 
the counterparty, or the person offering to be the 
counterparty, of the person is— 
‘‘(aa) a financial institution; 
‘‘(bb)(AA) a broker or dealer registered 
under section 15(b) (except paragraph (11) 
thereof) or 15C of the Securities Exchange 
Act of 1934 (15 U.S.C. 78o(b), 78o–5); or 
‘‘(BB) an associated person of a broker 
or dealer registered under section 15(b) (except 
paragraph (11) thereof) or 15C of the Securi-
ties Exchange Act of 1934 (15 U.S.C. 78o(b), 
78o–5) concerning the financial or securities 
activities of which the broker or dealer makes 
and keeps records under section 15C(b) or
H. R. 6124—540 
17(h) of the Securities Exchange Act of 1934 
(15 U.S.C. 78o–5(b), 78q(h)); 
‘‘(cc)(AA) a futures commission merchant 
that is primarily or substantially engaged in 
the business activities described in section 
1a(20) of this Act, is registered under this 
Act, is not a person described in item (bb) 
of this subclause, and maintains adjusted net 
capital equal to or in excess of the dollar 
amount that applies for purposes of clause 
(ii) of this subparagraph; or 
‘‘(BB) an affiliated person of a futures 
commission merchant that is primarily or 
substantially engaged in the business activi-
ties described in section 1a(20) of this Act, 
is registered under this Act, and is not a per-
son described in item (bb) of this subclause, 
if the affiliated person maintains adjusted net 
capital equal to or in excess of the dollar 
amount that applies for purposes of clause 
(ii) of this subparagraph and is not a person 
described in such item (bb), and the futures 
commission 
merchant 
makes 
and 
keeps 
records under section 4f(c)(2)(B) of this Act 
concerning the futures and other financial 
activities of the affiliated person; 
‘‘(dd) an insurance company described in 
section 1a(12)(A)(ii) of this Act, or a regulated 
subsidiary or affiliate of such an insurance 
company; 
‘‘(ee) a financial holding company (as 
defined in section 2 of the Bank Holding Com-
pany Act of 1956); 
‘‘(ff) an investment bank holding company 
(as defined in section 17(i) of the Securities 
Exchange Act of 1934 (15 U.S.C. 78q(i))); or 
‘‘(gg) a retail foreign exchange dealer that 
maintains adjusted net capital equal to or in 
excess of the dollar amount that applies for 
purposes of clause (ii) of this subparagraph 
and is registered in such capacity with the 
Commission, subject to such terms and condi-
tions as the Commission shall prescribe, and 
is a member of a futures association registered 
under section 17. 
‘‘(ii) The dollar amount that applies for purposes 
of this clause is— 
‘‘(I) $10,000,000, beginning 120 days after the 
date of the enactment of this clause; 
‘‘(II) $15,000,000, beginning 240 days after 
such date of enactment; and 
‘‘(III) $20,000,000, beginning 360 days after 
such date of enactment. 
‘‘(iii) Notwithstanding items (cc) and (gg) of clause 
(i)(II) of this subparagraph, agreements, contracts, or 
transactions described in clause (i) of this subpara-
graph shall be subject to subsection (a)(1)(B) of this
H. R. 6124—541 
section and sections 4(b), 4b, 4c(b), 4o, 6(c) and 6(d) 
(except to the extent that sections 6(c) and 6(d) prohibit 
manipulation of the market price of any commodity 
in interstate commerce, or for future delivery on or 
subject to the rules of any market), 6c, 6d, 8(a), 13(a), 
and 13(b) if the agreements, contracts, or transactions 
are offered, or entered into, by a person that is reg-
istered as a futures commission merchant or retail 
foreign exchange dealer, or an affiliated person of a 
futures commission merchant registered under this Act 
that is not also a person described in any of item 
(aa), (bb), (dd), (ee), or (ff) of clause (i)(II) of this 
subparagraph. 
‘‘(iv)(I) Notwithstanding items (cc) and (gg) of 
clause (i)(II), a person, unless registered in such 
capacity as the Commission by rule, regulation, or 
order shall determine and a member of a futures 
association registered under section 17, shall not— 
‘‘(aa) solicit or accept orders from any person 
that is not an eligible contract participant in 
connection with agreements, contracts, or trans-
actions described in clause (i) entered into with 
or to be entered into with a person who is not 
described in item (aa), (bb), (dd), (ee), or (ff) of 
clause (i)(II); 
‘‘(bb) exercise discretionary trading authority 
or obtain written authorization to exercise discre-
tionary trading authority over any account for or 
on behalf of any person that is not an eligible 
contract participant in connection with agree-
ments, contracts, or transactions described in 
clause (i) entered into with or to be entered into 
with a person who is not described in item (aa), 
(bb), (dd), (ee), or (ff) of clause (i)(II); or 
‘‘(cc) operate or solicit funds, securities, or 
property for any pooled investment vehicle that 
is not an eligible contract participant in connection 
with 
agreements, 
contracts, 
or 
transactions 
described in clause (i) entered into with or to be 
entered into with a person who is not described 
in item (aa), (bb), (dd), (ee), or (ff) of clause (i)(II). 
‘‘(II) Subclause (I) of this clause shall not apply 
to— 
‘‘(aa) any person described in any of item (aa), 
(bb), (dd), (ee), or (ff) of clause (i)(II); 
‘‘(bb) any such person’s associated persons; or 
‘‘(cc) any person who would be exempt from 
registration if engaging in the same activities in 
connection with transactions conducted on or sub-
ject to the rules of a contract market or a deriva-
tives transaction execution facility. 
‘‘(III) Notwithstanding items (cc) and (gg) of clause 
(i)(II), the Commission may make, promulgate, and 
enforce such rules and regulations as, in the judgment 
of the Commission, are reasonably necessary to effec-
tuate any of the provisions of, or to accomplish any
H. R. 6124—542 
of the purposes of, this Act in connection with the 
activities of persons subject to subclause (I). 
‘‘(IV) Subclause (III) of this clause shall not apply 
to— 
‘‘(aa) any person described in any of item (aa) 
through (ff) of clause (i)(II); 
‘‘(bb) any such person’s associated persons; or 
‘‘(cc) any person who would be exempt from 
registration if engaging in the same activities in 
connection with transactions conducted on or sub-
ject to the rules of a contract market or a deriva-
tives transaction execution facility. 
‘‘(v) Notwithstanding items (cc) and (gg) of clause 
(i)(II), the Commission may make, promulgate, and 
enforce such rules and regulations as, in the judgment 
of the Commission, are reasonably necessary to effec-
tuate any of the provisions of, or to accomplish any 
of the purposes of, this Act in connection with agree-
ments, contracts, or transactions described in clause 
(i) which are offered, or entered into, by a person 
described in item (cc) or (gg) of clause (i)(II). 
‘‘(C)(i)(I) This subparagraph shall apply to any agree-
ment, contract, or transaction in foreign currency that is— 
‘‘(aa) offered to, or entered into with, a person 
that is not an eligible contract participant (except 
that this subparagraph shall not apply if the 
counterparty, or the person offering to be the 
counterparty, of the person that is not an eligible 
contract participant is a person described in any 
of item (aa), (bb), (dd), (ee), or (ff) of subparagraph 
(B)(i)(II)); and 
‘‘(bb) offered, or entered into, on a leveraged 
or margined basis, or financed by the offeror, the 
counterparty, or a person acting in concert with 
the offeror or counterparty on a similar basis. 
‘‘(II) Subclause (I) of this clause shall not apply to— 
‘‘(aa) a security that is not a security futures 
product; or 
‘‘(bb) a contract of sale that— 
‘‘(AA) results in actual delivery within 2 days; 
or 
‘‘(BB) creates an enforceable obligation to 
deliver between a seller and buyer that have the 
ability to deliver and accept delivery, respectively, 
in connection with their line of business. 
‘‘(ii)(I) Agreements, contracts, or transactions described 
in clause (i) of this subparagraph shall be subject to sub-
section (a)(1)(B) of this section and sections 4(b), 4b, 4c(b), 
4o, 6(c) and 6(d) (except to the extent that sections 6(c) 
and 6(d) prohibit manipulation of the market price of any 
commodity in interstate commerce, or for future delivery 
on or subject to the rules of any market), 6c, 6d, 8(a), 
13(a), and 13(b). 
‘‘(II) Subclause (I) of this clause shall not apply to— 
‘‘(aa) any person described in any of item (aa), 
(bb), (dd), (ee), or (ff) of subparagraph (B)(i)(II); or 
‘‘(bb) any such person’s associated persons.
H. R. 6124—543 
‘‘(III) The Commission may make, promulgate, and 
enforce such rules and regulations as, in the judgment 
of the Commission, are reasonably necessary to effectuate 
any of the provisions of or to accomplish any of the purposes 
of this Act in connection with agreements, contracts, or 
transactions described in clause (i) of this subparagraph 
if the agreements, contracts, or transactions are offered, 
or entered into, by a person that is not described in item 
(aa) through (ff) of subparagraph (B)(i)(II). 
‘‘(iii)(I) A person, unless registered in such capacity 
as the Commission by rule, regulation, or order shall deter-
mine and a member of a futures association registered 
under section 17, shall not— 
‘‘(aa) solicit or accept orders from any person that 
is not an eligible contract participant in connection 
with agreements, contracts, or transactions described 
in clause (i) of this subparagraph entered into with 
or to be entered into with a person who is not described 
in item (aa), (bb), (dd), (ee), or (ff) of subparagraph 
(B)(i)(II); 
‘‘(bb) exercise discretionary trading authority or 
obtain written authorization to exercise written trading 
authority over any account for or on behalf of any 
person that is not an eligible contract participant in 
connection with agreements, contracts, or transactions 
described in clause (i) of this subparagraph entered 
into with or to be entered into with a person who 
is not described in item (aa), (bb), (dd), (ee), or (ff) 
of subparagraph (B)(i)(II); or 
‘‘(cc) operate or solicit funds, securities, or property 
for any pooled investment vehicle that is not an eligible 
contract participant in connection with agreements, 
contracts, or transactions described in clause (i) of 
this subparagraph entered into with or to be entered 
into with a person who is not described in item (aa), 
(bb), (dd), (ee), or (ff) of subparagraph (B)(i)(II). 
‘‘(II) Subclause (I) of this clause shall not apply to— 
‘‘(aa) any person described in item (aa), (bb), (dd), 
(ee), or (ff) of subparagraph (B)(i)(II); 
‘‘(bb) any such person’s associated persons; or 
‘‘(cc) any person who would be exempt from reg-
istration if engaging in the same activities in connec-
tion with transactions conducted on or subject to the 
rules of a contract market or a derivatives transaction 
execution facility. 
‘‘(III) The Commission may make, promulgate, and 
enforce such rules and regulations as, in the judgment 
of the Commission, are reasonably necessary to effectuate 
any of the provisions of, or to accomplish any of the pur-
poses of, this Act in connection with the activities of persons 
subject to subclause (I). 
‘‘(IV) Subclause (III) of this clause shall not apply 
to— 
‘‘(aa) any person described in item (aa) through 
(ff) of subparagraph (B)(i)(II); 
‘‘(bb) any such person’s associated persons; or
H. R. 6124—544 
‘‘(cc) any person who would be exempt from reg-
istration if engaging in the same activities in connec-
tion with transactions conducted on or subject to the 
rules of a contract market or a derivatives transaction 
execution facility. 
‘‘(iv) Sections 4(b) and 4b shall apply to any agreement, 
contract, or transaction described in clause (i) of this 
subparagraph as if the agreement, contract, or transaction 
were a contract of sale of a commodity for future delivery. 
‘‘(v) This subparagraph shall not be construed to limit 
any jurisdiction that the Commission may otherwise have 
under any other provision of this Act over an agreement, 
contract, or transaction that is a contract of sale of a 
commodity for future delivery. 
‘‘(vi) This subparagraph shall not be construed to limit 
any jurisdiction that the Commission or the Securities and 
Exchange Commission may otherwise have under any other 
provision of this Act with respect to security futures prod-
ucts and persons effecting transactions in security futures 
products.’’. 
(b) EFFECTIVE DATE.—The following provisions of the Com-
modity Exchange Act, as amended by subsection (a) of this section, 
shall be effective 120 days after the date of the enactment of 
this Act or at such other time as the Commodity Futures Trading 
Commission shall determine: 
(1) Subparagraphs (B)(i)(II)(gg), (B)(iv), and (C)(iii) of sec-
tion 2(c)(2). 
(2) The provisions of section 2(c)(2)(B)(i)(II)(cc) that set 
forth adjusted net capital requirements, and the provisions 
of such section that require a futures commission merchant 
to be primarily or substantially engaged in certain business 
activities. 
SEC. 13102. ANTI-FRAUD AUTHORITY OVER PRINCIPAL-TO-PRINCIPAL 
TRANSACTIONS. 
Section 4b of the Commodity Exchange Act (7 U.S.C. Section 
6b) is amended— 
(1) by redesignating subsections (b) and (c) as subsections 
(c) and (d), respectively; and 
(2) by striking all through the end of subsection (a) and 
inserting the following: 
‘‘SEC. 4b. CONTRACTS DESIGNED TO DEFRAUD OR MISLEAD. 
‘‘(a) UNLAWFUL ACTIONS.—It shall be unlawful— 
‘‘(1) for any person, in or in connection with any order 
to make, or the making of, any contract of sale of any commodity 
in interstate commerce or for future delivery that is made, 
or to be made, on or subject to the rules of a designated 
contract market, for or on behalf of any other person; or 
‘‘(2) for any person, in or in connection with any order 
to make, or the making of, any contract of sale of any commodity 
for future delivery, or other agreement, contract, or transaction 
subject to paragraphs (1) and (2) of section 5a(g), that is made, 
or to be made, for or on behalf of, or with, any other person, 
other than on or subject to the rules of a designated contract 
market— 
‘‘(A) to cheat or defraud or attempt to cheat or defraud 
the other person;
H. R. 6124—545 
‘‘(B) willfully to make or cause to be made to the 
other person any false report or statement or willfully 
to enter or cause to be entered for the other person any 
false record; 
‘‘(C) willfully to deceive or attempt to deceive the other 
person by any means whatsoever in regard to any order 
or contract or the disposition or execution of any order 
or contract, or in regard to any act of agency performed, 
with respect to any order or contract for or, in the case 
of paragraph (2), with the other person; or 
‘‘(D)(i) to bucket an order if the order is either rep-
resented by the person as an order to be executed, or 
is required to be executed, on or subject to the rules of 
a designated contract market; or 
‘‘(ii) to fill an order by offset against the order or 
orders of any other person, or willfully and knowingly 
and without the prior consent of the other person to become 
the buyer in respect to any selling order of the other 
person, or become the seller in respect to any buying order 
of the other person, if the order is either represented by 
the person as an order to be executed, or is required to 
be executed, on or subject to the rules of a designated 
contract market unless the order is executed in accordance 
with the rules of the designated contract market. 
‘‘(b) CLARIFICATION.—Subsection (a)(2) of this section shall not 
obligate any person, in or in connection with a transaction in 
a contract of sale of a commodity for future delivery, or other 
agreement, contract or transaction subject to paragraphs (1) and 
(2) of section 5a(g), with another person, to disclose to the other 
person nonpublic information that may be material to the market 
price, rate, or level of the commodity or transaction, except as 
necessary to make any statement made to the other person in 
or in connection with the transaction not misleading in any material 
respect.’’. 
SEC. 13103. CRIMINAL AND CIVIL PENALTIES. 
(a) ENFORCEMENT POWERS OF THE COMMISSION.—Section 6(c) 
of the Commodity Exchange Act (7 U.S.C. 9, 15) is amended in 
clause (3) of the 10th sentence— 
(1) by inserting ‘‘(A)’’ after ‘‘assess such person’’; and 
(2) by inserting after ‘‘each such violation’’ the following: 
‘‘, or (B) in any case of manipulation or attempted manipulation 
in violation of this subsection, subsection (d) of this section, 
or section 9(a)(2), a civil penalty of not more than the greater 
of $1,000,000 or triple the monetary gain to the person for 
each such violation,’’. 
(b) NONENFORCEMENT OF RULES OF GOVERNMENT OR OTHER 
VIOLATIONS.—Section 6b of such Act (7 U.S.C. 13a) is amended— 
(1) in the first sentence, by inserting before the period 
at the end the following: ‘‘, or, in any case of manipulation 
or attempted manipulation in violation of section 6(c), 6(d), 
or 9(a)(2), a civil penalty of not more than $1,000,000 for 
each such violation’’; and 
(2) in the second sentence, by inserting before the period 
at the end the following: ‘‘, except that if the failure or refusal 
to obey or comply with the order involved any offense under 
section 9(a)(2), the registered entity, director, officer, agent,
H. R. 6124—546 
or employee shall be guilty of a felony and, on conviction, 
shall be subject to penalties under section 9(a)(2)’’. 
(c) ACTION TO ENJOIN OR RESTRAIN VIOLATIONS.—Section 6c(d) 
of such Act (7 U.S.C. 13a–1(d)) is amended by striking all that 
precedes paragraph (2) and inserting the following: 
‘‘(d) CIVIL PENALTIES.— 
‘‘(1) IN GENERAL.—In any action brought under this section, 
the Commission may seek and the court shall have jurisdiction 
to impose, on a proper showing, on any person found in the 
action to have committed any violation— 
‘‘(A) a civil penalty in the amount of not more than 
the greater of $100,000 or triple the monetary gain to 
the person for each violation; or 
‘‘(B) in any case of manipulation or attempted manipu-
lation in violation of section 6(c), 6(d), or 9(a)(2), a civil 
penalty in the amount of not more than the greater of 
$1,000,000 or triple the monetary gain to the person for 
each violation.’’. 
(d) VIOLATIONS GENERALLY.—Section 9(a) of such Act (7 U.S.C. 
13(a)) is amended in the matter preceding paragraph (1)— 
(1) by striking ‘‘(or $500,000 in the case of a person who 
is an individual)’’; and 
(2) by striking ‘‘five years’’ and inserting ‘‘10 years’’. 
SEC. 13104. AUTHORIZATION OF APPROPRIATIONS. 
Section 12(d) of the Commodity Exchange Act (7 U.S.C. 16(d)) 
is amended to read as follows: 
‘‘(d) There are authorized to be appropriated such sums as 
are necessary to carry out this Act for each of the fiscal years 
2008 through 2013.’’. 
SEC. 13105. TECHNICAL AND CONFORMING AMENDMENTS. 
(a) Section 4a(e) of the Commodity Exchange Act (7 U.S.C. 
6a(e)) is amended— 
(1) by inserting ‘‘or certified by a registered entity pursuant 
to section 5c(c)(1)’’ after ‘‘approved by the Commission’’ ; and 
(2) by striking ‘‘section 9(c)’’ and inserting ‘‘section 9(a)(5)’’. 
(b) Section 4f(c)(4)(B)(i) of such Act (7 U.S.C. 6f(c)(4)(B)(i)) 
is amended by striking ‘‘compiled’’ and inserting ‘‘complied’’. 
(c) Section 4k of such Act (7 U.S.C. 6k) is amended by redesig-
nating the second paragraph (5) as paragraph (6). 
(d) The Commodity Exchange Act is amended— 
(1) by redesignating the first section 4p (7 U.S.C. 6o– 
1), as added by section 121 of the Commodity Futures Mod-
ernization Act of 2000, as section 4q; and 
(2) by moving such section to after the second section 
4p, as added by section 206 of Public Law 93–446. 
(e) Subsections (a)(1) and (d)(1) of section 5c of such Act (7 
U.S.C. 7a–2(a)(1), (d)(1)) are each amended by striking ‘‘5b(d)(2)’’ 
and inserting ‘‘5b(c)(2)’’. 
(f) Sections 5c(f) and 17(r) of such Act (7 U.S.C. 7a–2(f), 21(r)) 
are each amended by striking ‘‘4d(3)’’ and inserting ‘‘4d(c)’’. 
(g) Section 8(a)(1) of such Act (7 U.S.C. 12(a)(1)) is amended 
in the matter following subparagraph (B)— 
(1) by striking ‘‘commenced’’ in the 2nd place it appears; 
and 
(2) by inserting ‘‘commenced’’ after ‘‘in a judicial pro-
ceeding’’.
H. R. 6124—547 
(h) Section 9 of such Act (7 U.S.C. 13) is amended— 
(1) in subsection (f)(1), by striking the period and inserting 
‘‘; or’’; and 
(2) by redesignating subsection (f) as subsection (e). 
(i) Section 22(a)(2) of such Act (7 U.S.C. 25(a)(2)) is amended 
by striking ‘‘5b(b)(1)(E)’’ and inserting ‘‘5b(c)(2)(H)’’. 
(j) Section 1a(33)(A) of such Act (7 U.S.C. 1a(33)(A)) is amended 
by striking ‘‘transactions’’ and all that follows and inserting ‘‘trans-
actions— 
‘‘(i) by accepting bids or offers made by other 
participants that are open to multiple partipants in 
the facility or system; or 
‘‘(ii) through the interaction of multiple bids or 
multiple offers within a system with a pre-determined 
non-discretionary automated trade matching and 
execution algorithm.’’. 
(k) Section 14(d) of such Act (7 U.S.C. 18(d)) is amended— 
(1) by inserting ‘‘(1)’’ before ‘‘If’’; and 
(2) by adding after and below the end the following: 
‘‘(2) A reparation award shall be directly enforceable in 
district court as if it were a judgment pursuant to section 
1963 of title 28, United States Code. This paragraph shall 
operate retroactively from the effective date of its enactment, 
and shall apply to all reparation awards for which a proceeding 
described in paragraph (1) is commenced within 3 years of 
the date of the Commission’s order.’’. 
SEC. 13106. PORTFOLIO MARGINING AND SECURITY INDEX ISSUES. 
(a) The Secretary of the Treasury, the Chairman of the Board 
of Governors of the Federal Reserve System, the Chairman of 
the Securities and Exchange Commission, and the Chairman of 
the Commodity Futures Trading Commission shall work to ensure 
that the Securities and Exchange Commission (SEC), the Com-
modity Futures Trading Commission (CFTC), or both, as appro-
priate, have taken the actions required under subsection (b). 
(b) The SEC, the CFTC, or both, as appropriate, shall take 
action under their existing authorities to permit— 
(1) by September 30, 2009, risk-based portfolio margining 
for security options and security futures products (as defined 
in section 1a(32) of the Commodity Exchange Act); and 
(2) by June 30, 2009, the trading of futures on certain 
security indexes by resolving issues related to foreign security 
indexes. 
Subtitle B—Significant Price Discovery 
Contracts on Exempt Commercial Markets 
SEC. 13201. SIGNIFICANT PRICE DISCOVERY CONTRACTS. 
(a) DEFINITIONS.—Section la of the Commodity Exchange Act 
(7 U.S.C. la) is amended— 
(1) by redesignating paragraph (33) as paragraph (34); 
and 
(2) by inserting after paragraph (32) the following: 
‘‘(33) SIGNIFICANT PRICE DISCOVERY CONTRACT.—The term 
‘significant price discovery contract’ means an agreement, con-
tract, or transaction subject to section 2(h)(7).’’.
H. R. 6124—548 
(b) STANDARDS APPLICABLE TO SIGNIFICANT PRICE DISCOVERY 
CONTRACTS.—Section 2(h) of such Act (7 U.S.C. 2(h)) is amended 
by adding at the end the following: 
‘‘(7) SIGNIFICANT PRICE DISCOVERY CONTRACTS.— 
‘‘(A) IN GENERAL.—An agreement, contract, or trans-
action conducted in reliance on the exemption in paragraph 
(3) shall be subject to the provisions of subparagraphs 
(B) through (D), under such rules and regulations as the 
Commission shall promulgate, provided that the Commis-
sion determines, in its discretion, that the agreement, con-
tract, or transaction performs a significant price discovery 
function as described in subparagraph (B). 
‘‘(B) SIGNIFICANT PRICE DISCOVERY DETERMINATION.— 
In making a determination whether an agreement, con-
tract, or transaction performs a significant price discovery 
function, the Commission shall consider, as appropriate: 
‘‘(i) PRICE
LINKAGE.—The extent to which the 
agreement, contract, or transaction uses or otherwise 
relies on a daily or final settlement price, or other 
major price parameter, of a contract or contracts listed 
for trading on or subject to the rules of a designated 
contract market or a derivatives transaction execution 
facility, or a significant price discovery contract traded 
on an electronic trading facility, to value a position, 
transfer or convert a position, cash or financially settle 
a position, or close out a position. 
‘‘(ii) ARBITRAGE.—The extent to which the price 
for the agreement, contract, or transaction is suffi-
ciently related to the price of a contract or contracts 
listed for trading on or subject to the rules of a des-
ignated contract market or derivatives transaction 
execution facility, or a significant price discovery con-
tract or contracts trading on or subject to the rules 
of an electronic trading facility, so as to permit market 
participants to effectively arbitrage between the mar-
kets by simultaneously maintaining positions or exe-
cuting trades in the contracts on a frequent and recur-
ring basis. 
‘‘(iii) MATERIAL PRICE REFERENCE.—The extent to 
which, on a frequent and recurring basis, bids, offers, 
or transactions in a commodity are directly based on, 
or are determined by referencing, the prices generated 
by agreements, contracts, or transactions being traded 
or executed on the electronic trading facility. 
‘‘(iv) MATERIAL LIQUIDITY.—The extent to which 
the volume of agreements, contracts, or transactions 
in the commodity being traded on the electronic trading 
facility is sufficient to have a material effect on other 
agreements, contracts, or transactions listed for trading 
on or subject to the rules of a designated contract 
market, a derivatives transaction execution facility, 
or an electronic trading facility operating in reliance 
on the exemption in paragraph (3). 
‘‘(v) OTHER MATERIAL FACTORS.—Such other mate-
rial factors as the Commission specifies by rule as 
relevant to determine whether an agreement, contract,
H. R. 6124—549 
or transaction serves a significant price discovery func-
tion. 
‘‘(C) CORE
PRINCIPLES
APPLICABLE
TO
SIGNIFICANT 
PRICE DISCOVERY CONTRACTS.— 
‘‘(i) IN GENERAL.—An electronic trading facility on 
which significant price discovery contracts are traded 
or executed shall, with respect to those contracts, 
comply with the core principles specified in this 
subparagraph. 
‘‘(ii) CORE
PRINCIPLES.—The electronic trading 
facility shall have reasonable discretion (including 
discretion to account for differences between cleared 
and uncleared significant price discovery contracts) in 
establishing the manner in which it complies with 
the following core principles: 
‘‘(I) CONTRACTS NOT READILY SUSCEPTIBLE TO 
MANIPULATION.—The electronic trading facility 
shall list only significant price discovery contracts 
that are not readily susceptible to manipulation. 
‘‘(II) MONITORING OF TRADING.—The electronic 
trading facility shall monitor trading in significant 
price discovery contracts to prevent market 
manipulation, price distortion, and disruptions of 
the delivery or cash-settlement process through 
market surveillance, compliance, and disciplinary 
practices and procedures, including methods for 
conducting real-time monitoring of trading and 
comprehensive and accurate trade reconstructions. 
‘‘(III) ABILITY TO OBTAIN INFORMATION.—The 
electronic trading facility shall— 
‘‘(aa) establish and enforce rules that will 
allow the electronic trading facility to obtain 
any necessary information to perform any of 
the functions described in this subparagraph; 
‘‘(bb) provide the information to the 
Commission upon request; and 
‘‘(cc) have the capacity to carry out such 
international information-sharing agreements 
as the Commission may require. 
‘‘(IV) POSITION
LIMITATIONS
OR
ACCOUNT-
ABILITY.—The electronic trading facility shall 
adopt, where necessary and appropriate, position 
limitations or position accountability for specu-
lators in significant price discovery contracts, 
taking into account positions in other agreements, 
contracts, and transactions that are treated by 
a derivatives clearing organization, whether reg-
istered or not registered, as fungible with such 
significant price discovery contracts to reduce the 
potential threat of market manipulation or conges-
tion, especially during trading in the delivery 
month. 
‘‘(V) EMERGENCY AUTHORITY.—The electronic 
trading facility shall adopt rules to provide for 
the exercise of emergency authority, in consulta-
tion or cooperation with the Commission, where
H. R. 6124—550 
necessary 
and 
appropriate, 
including 
the 
authority— 
‘‘(aa) to liquidate open positions in a 
significant price discovery contract; and 
‘‘(bb) to suspend or curtail trading in a 
significant price discovery contract. 
‘‘(VI) DAILY PUBLICATION OF TRADING INFORMA-
TION.—The electronic trading facility shall make 
public daily information on price, trading volume, 
and other trading data to the extent appropriate 
for significant price discovery contracts 
‘‘(VII) COMPLIANCE
WITH
RULES.—The elec-
tronic trading facility shall monitor and enforce 
compliance with any rules of the electronic trading 
facility applicable to significant price discovery 
contracts, including the terms and conditions of 
the contracts and any limitations on access to the 
electronic trading facility with respect to the con-
tracts. 
‘‘(VIII) CONFLICT OF INTEREST.—The electronic 
trading facility, with respect to significant price 
discovery contracts, shall— 
‘‘(aa) establish and enforce rules to mini-
mize conflicts of interest in its decision-making 
process; and 
‘‘(bb) establish a process for resolving the 
conflicts of interest. 
‘‘(IX) 
ANTITRUST
CONSIDERATIONS.—Unless 
necessary or appropriate to achieve the purposes 
of this Act, the electronic trading facility, with 
respect to significant price discovery contracts, 
shall endeavor to avoid— 
‘‘(aa) adopting any rules or taking any 
actions that result in any unreasonable 
restraints of trade; or 
‘‘(bb) imposing any material anticompeti-
tive burden on trading on the electronic 
trading facility. 
‘‘(D) IMPLEMENTATION.— 
‘‘(i) CLEARING.—The Commission shall take into 
consideration 
differences 
between 
cleared 
and 
uncleared significant price discovery contracts when 
reviewing the implementation of the core principles 
by an electronic trading facility. 
‘‘(ii) REVIEW.—As part of the Commission’s con-
tinual monitoring and surveillance activities, the 
Commission shall, not less frequently than annually, 
evaluate, as appropriate, all the agreements, contracts, 
or transactions conducted on an electronic trading 
facility in reliance on the exemption provided in para-
graph (3) to determine whether they serve a significant 
price discovery function as described in subparagraph 
(B) of this paragraph.’’. 
SEC. 13202. LARGE TRADER REPORTING. 
(a) REPORTING AND RECORDKEEPING.—Section 4g(a) of the Com-
modity Exchange Act (7 U.S.C. 6g(a)) is amended by inserting
H. R. 6124—551 
‘‘, and in any significant price discovery contract traded or executed 
on an electronic trading facility or any agreement, contract, or 
transaction that is treated by a derivatives clearing organization, 
whether registered or not registered, as fungible with a significant 
price discovery contract’’ after ‘‘elsewhere’’. 
(b) REPORTS OF POSITIONS EQUAL TO OR IN EXCESS OF TRADING 
LIMITS.—Section 4i of such Act (7 U.S.C. 6i) is amended— 
(1) by inserting ‘‘, or any significant price discovery contract 
traded or executed on an electronic trading facility or any 
agreement, contract, or transaction that is treated by a deriva-
tives clearing organization, whether registered or not reg-
istered, as fungible with a significant price discovery contract’’ 
after ‘‘subject to the rules of any contract market or derivatives 
transaction execution facility’’; and 
(2) in the matter following paragraph (2), by inserting 
‘‘or electronic trading facility’’ after ‘‘subject to the rules of 
any other board of trade’’. 
SEC. 13203. CONFORMING AMENDMENTS. 
(a) Section 1a(12)(A)(x) of the Commodity Exchange Act (7 
U.S.C. 1a(12)(A)(x)) is amended by inserting ‘‘(other than an elec-
tronic trading facility with respect to a significant price discovery 
contract)’’ after ‘‘registered entity’’. 
(b) Section 1a(29) of such Act (7 U.S.C. 1a(29)) is amended— 
(1) in subparagraph (C), by striking ‘‘and’’ at the end; 
(2) in subparagraph (D), by striking the period and 
inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(E) with respect to a contract that the Commission 
determines is a significant price discovery contract, any 
electronic trading facility on which the contract is executed 
or traded.’’. 
(c) Section 2(a)(1)(A) of such Act (7 U.S.C. 2(a)(1)(A)) is amended 
by inserting after ‘‘future delivery’’ the following: ‘‘(including signifi-
cant price discovery contracts)’’. 
(d) Section 2(h)(3) of such Act (7 U.S.C. 2(h)(3)) is amended 
by striking ‘‘paragraph (4)’’ and inserting ‘‘paragraphs (4) and (7)’’. 
(e) Section 2(h)(4) of such Act (7 U.S.C. 2(h)(4)) is amended— 
(1) in subparagraph (B), by inserting ‘‘and, for a significant 
price discovery contract, requiring large trader reporting,’’ after 
‘‘proscribing fraud’’; 
(2) by striking ‘‘and’’ at the end of subparagraph (C); and 
(3) by striking subparagraph (D) and inserting the fol-
lowing: 
‘‘(D) such rules, regulations, and orders as the Commis-
sion may issue to ensure timely compliance with any of 
the provisions of this Act applicable to a significant price 
discovery contract traded on or executed on any electronic 
trading facility; and 
‘‘(E) such other provisions of this Act as are applicable 
by their terms to significant price discovery contracts or 
to registered entities or electronic trading facilities with 
respect to significant price discovery contracts.’’. 
(f) Section 2(h)(5)(B)(iii)(I) of such Act (7 U.S.C. 2(h)(5)(B)(iii)(I)) 
is amended by inserting ‘‘or to make the determination described 
in subparagraph (B) of paragraph (7)’’ after ‘‘paragraph (4)’’. 
(g) Section 4a of such Act (7 U.S.C. 6a) is amended—
H. R. 6124—552 
(1) in subsection (a)— 
(A) in the first sentence, by inserting ‘‘, or on electronic 
trading facilities with respect to a significant price dis-
covery contract’’ after ‘‘derivatives transaction execution 
facilities’’; and 
(B) in the second sentence, by inserting ‘‘, or on an 
electronic trading facility with respect to a significant price 
discovery contract,’’ after ‘‘derivatives transaction execution 
facility’’; and 
(2) in subsection (b)— 
(A) in paragraph (1), by inserting ‘‘or electronic trading 
facility with respect to a significant price discovery con-
tract’’ after ‘‘facility or facilities’’; and 
(B) in paragraph (2), by inserting ‘‘or electronic trading 
facility with respect to a significant price discovery con-
tract’’ after ‘‘derivatives transaction execution facility’’; and 
(3) in subsection (e)— 
(A) in the first sentence— 
(i) by inserting ‘‘or by any electronic trading 
facility’’ after ‘‘registered by the Commission’’; 
(ii) by inserting ‘‘or on an electronic trading 
facility’’ 
after 
‘‘derivatives 
transaction 
execution 
facility’’ the second place it appears; and 
(iii) by inserting ‘‘or electronic trading facility’’ 
before ‘‘or such board of trade’’ each place it appears; 
and 
(B) in the second sentence, by inserting ‘‘or electronic 
trading facility with respect to a significant price discovery 
contract’’ after ‘‘registered by the Commission’’. 
(h) Section 5a(d) of such Act (7 U.S.C. 7a(d)(1)) is amended— 
(1) by redesignating paragraphs (4) through (9) as para-
graphs (5) through (10); and 
(2) by inserting after paragraph (3) the following: 
‘‘(4) POSITION LIMITATIONS OR ACCOUNTABILITY.—To reduce 
the potential threat of market manipulation or congestion, espe-
cially during trading in the delivery month, the derivatives 
transaction execution facility shall adopt position limits or posi-
tion accountability for speculators, where necessary and appro-
priate for a contract, agreement or transaction with an under-
lying commodity that has a physically deliverable supply.’’. 
(i) Section 5c(a) of such Act (7 U.S.C. 7a–2(a)) is amended 
in paragraph (1) by inserting ‘‘, and section 2(h)(7) with respect 
to significant price discovery contracts,’’ after ‘‘, and 5b(d)(2)’’. 
(j) Section 5c(b) of such Act (7 U.S.C. 7a–2(b)) is amended— 
(1) by striking paragraph (1) and inserting the following: 
‘‘(1) IN GENERAL.—A contract market, derivatives trans-
action execution facility, or electronic trading facility with 
respect to a significant price discovery contract may comply 
with any applicable core principle through delegation of any 
relevant function to a registered futures association or a reg-
istered entity that is not an electronic trading facility.’’; 
(2) in paragraph (2), by striking ‘‘contract market or deriva-
tives transaction execution facility’’ and inserting ‘‘contract 
market, derivatives transaction execution facility, or electronic 
trading facility’’; and 
(3) in paragraph (3), by striking ‘‘contract market or deriva-
tives transaction execution facility’’ each place it appears and
H. R. 6124—553 
inserting ‘‘contract market, derivatives transaction execution 
facility, or electronic trading facility’’. 
(k) Section 5c(d)(1) of such Act (7 U.S.C. 7a–2(d)(1)) is amended 
by inserting ‘‘or 2(h)(7)(C) with respect to a significant price dis-
covery contract traded or executed on an electronic trading facility,’’ 
after ‘‘5b(d)(2)’’. 
(l) Section 5e of such Act (7 U.S.C. 7b) is amended by inserting 
‘‘, or revocation of the right of an electronic trading facility to 
rely on the exemption set forth in section 2(h)(3) with respect 
to a significant price discovery contract,’’ after ‘‘revocation of des-
ignation as a registered entity’’. 
(m) Section 6(b) of the Commodity Exchange Act (7 U.S.C. 
8(b)) is amended by striking the first sentence and all that follows 
through ‘‘hearing on the record: Provided,’’ and inserting the fol-
lowing: 
‘‘The Commission is authorized to suspend for a period not 
to exceed 6 months or to revoke the designation or registration 
of any contract market or derivatives transaction execution facility, 
or to revoke the right of an electronic trading facility to rely on 
the exemption set forth in section 2(h)(3) with respect to a signifi-
cant price discovery contract, on a showing that the contract market 
or derivatives transaction execution facility is not enforcing or has 
not enforced its rules of government, made a condition of its designa-
tion or registration as set forth in sections 5 through 5b or section 
5f, or that the contract market or derivatives transaction execution 
facility or electronic trading facility, or any director, officer, agent, 
or employee thereof, otherwise is violating or has violated any 
of the provisions of this Act or any of the rules, regulations, or 
orders of the Commission thereunder. Such suspension or revocation 
shall only be made after a notice to the officers of the contract 
market or derivatives transaction execution facility or electronic 
trading facility affected and upon a hearing on the record: Pro-
vided,’’. 
(n) Section 22(b)(1) of such Act (7 U.S.C. 25(b)(1)) is amended 
by inserting ‘‘section 2(h)(7) or’’ before ‘‘sections 5’’. 
SEC. 13204. EFFECTIVE DATE. 
(a) IN GENERAL.—Except as provided in this section, this sub-
title shall become effective on the date of enactment of this Act. 
(b) SIGNIFICANT PRICE DISCOVERY STANDARDS RULEMAKING.— 
(1) The Commodity Futures Trading Commission shall— 
(A) not later than 180 days after the date of the enact-
ment of this Act, issue a proposed rule regarding the 
implementation of section 2(h)(7) of the Commodity 
Exchange Act; and 
(B) not later than 270 days after the date of enactment 
of this Act, issue a final rule regarding the implementation. 
(2) In its rulemaking pursuant to paragraph (1) of this 
subsection, the Commission shall include the standards, terms, 
and conditions under which an electronic trading facility will 
have the responsibility to notify the Commission that an agree-
ment, contract, or transaction conducted in reliance on the 
exemption provided in section 2(h)(3) of the Commodity 
Exchange Act may perform a price discovery function. 
(c) SIGNIFICANT
PRICE
DISCOVERY
DETERMINATIONS.—With 
respect to any electronic trading facility operating on the effective 
date of the final rule issued pursuant to subsection (b)(1), the
H. R. 6124—554 
Commission shall complete a review of the agreements, contracts, 
and transactions of the facility not later than 180 days after that 
effective date to determine whether any such agreement, contract, 
or transaction performs a significant price discovery function. 
TITLE XIV—MISCELLANEOUS 
Subtitle A—Socially Disadvantaged Pro-
ducers and Limited Resource Producers 
SEC. 14001. IMPROVED PROGRAM DELIVERY BY DEPARTMENT OF 
AGRICULTURE ON INDIAN RESERVATIONS. 
Section 2501(g)(1) of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 2279(g)(1)) is amended— 
(1) in the first sentence— 
(A) by striking ‘‘Agricultural Stabilization and Con-
servation Service, Soil Conservation Service, and Farmers 
Home Administration offices’’ and inserting ‘‘Farm Service 
Agency and Natural Resources Conservation Service’’; and 
(B) by inserting ‘‘where there has been a need dem-
onstrated’’ after ‘‘include’’; and 
(2) by striking the second sentence. 
SEC. 14002. FORECLOSURE. 
(a) IN GENERAL.—Section 331A of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1981a) is amended: 
(1) by inserting ‘‘(a)’’ after ‘‘SEC. 331A.’’; and 
(2) by adding at the end the following: 
‘‘(b) MORATORIUM.— 
‘‘(1) IN GENERAL.—Subject to the other provisions of this 
subsection, effective beginning on the date of the enactment 
of this subsection, there shall be in effect a moratorium, with 
respect to farmer program loans made under subtitle A, B, 
or C, on all acceleration and foreclosure proceedings instituted 
by the Department of Agriculture against any farmer or rancher 
who— 
‘‘(A) has pending against the Department a claim of 
program discrimination that is accepted by the Department 
as valid; or 
‘‘(B) files a claim of program discrimination that is 
accepted by the Department as valid. 
‘‘(2) WAIVER OF INTEREST AND OFFSETS.—During the period 
of the moratorium, the Secretary shall waive the accrual of 
interest and offsets on all farmer program loans made under 
subtitle A, B, or C for which loan acceleration or foreclosure 
proceedings have been suspended under paragraph (1). 
‘‘(3) TERMINATION OF MORATORIUM.—The moratorium shall 
terminate with respect to a claim of discrimination by a farmer 
or rancher on the earlier of— 
‘‘(A) the date the Secretary resolves the claim; or 
‘‘(B) if the farmer or rancher appeals the decision of 
the Secretary on the claim to a court of competent jurisdic-
tion, the date that the court renders a final decision on 
the claim.
H. R. 6124—555 
‘‘(4) FAILURE
TO
PREVAIL.—If a farmer or rancher does 
not prevail on a claim of discrimination described in paragraph 
(1), the farmer or rancher shall be liable for any interest and 
offsets that accrued during the period that loan acceleration 
or foreclosure proceedings have been suspended under para-
graph (1).’’. 
(b) FORECLOSURE REPORT.— 
(1) IN
GENERAL.—Not later than 1 year after the date 
of the enactment of this Act, the Inspector General of the 
Department of Agriculture (referred to in this subsection as 
the ‘‘Inspector General’’) shall determine whether decisions of 
the Department to implement foreclosure proceedings with 
respect to farmer program loans made under subtitle A, B, 
or C of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1922 et seq.) to socially disadvantaged farmers or 
ranchers during the 5-year period preceding the date of the 
enactment of this Act were consistent and in conformity with 
the applicable laws (including regulations) governing loan fore-
closures. 
(2) REPORT.—Not later than 1 year after the date of the 
enactment of this Act, the Inspector General shall submit to 
the Committee on Agriculture of the House of Representatives 
and the Committee on Agriculture, Nutrition, and Forestry 
of the Senate a report that describes the determination of 
the Inspector General under paragraph (1). 
SEC. 14003. RECEIPT FOR SERVICE OR DENIAL OF SERVICE FROM 
CERTAIN DEPARTMENT OF AGRICULTURE AGENCIES. 
Section 2501A of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 2279–1) is amended by adding at 
the end the following new subsection: 
‘‘(e) RECEIPT
FOR SERVICE
OR DENIAL
OF SERVICE.—In any 
case in which a current or prospective producer or landowner, 
in person or in writing, requests from the Farm Service Agency, 
the Natural Resources Conservation Service, or an agency of the 
Rural Development Mission Area any benefit or service offered 
by the Department to agricultural producers or landowners and, 
at the time of the request, also requests a receipt, the Secretary 
shall issue, on the date of the request, a receipt to the producer 
or landowner that contains— 
‘‘(1) the date, place, and subject of the request; and 
‘‘(2) the action taken, not taken, or recommended to the 
producer or landowner.’’. 
SEC. 14004. OUTREACH AND TECHNICAL ASSISTANCE FOR SOCIALLY 
DISADVANTAGED FARMERS OR RANCHERS. 
(a) OUTREACH AND TECHNICAL ASSISTANCE PROGRAM.— 
(1) PROGRAM
REQUIREMENTS.—Paragraph (2) of section 
2501(a) of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 2279(a)) is amended to read as follows: 
‘‘(2) REQUIREMENTS.—The outreach and technical assist-
ance program under paragraph (1) shall be used exclusively— 
‘‘(A) to enhance coordination of the outreach, technical 
assistance, and education efforts authorized under agri-
culture programs; and 
‘‘(B) to assist the Secretary in—
H. R. 6124—556 
‘‘(i) reaching current and prospective socially dis-
advantaged farmers or ranchers in a linguistically 
appropriate manner; and 
‘‘(ii) improving the participation of those farmers 
and ranchers in Department programs, as reported 
under section 2501A.’’. 
(2) GRANTS
AND
CONTRACTS
UNDER
PROGRAM.—Section 
2501(a)(3) of the Food, Agriculture, Conservation, and Trade 
Act of 1990 (7 U.S.C. 2279(a)(3)) is amended— 
(A) in subparagraph (A), by striking ‘‘entity to provide 
information’’ and inserting ‘‘entity that has demonstrated 
an ability to carry out the requirements described in para-
graph (2) to provide outreach’’; and 
(B) by adding at the end the following new subpara-
graph: 
‘‘(D) REPORT.—The Secretary shall submit to the Com-
mittee on Agriculture of the House of Representatives and 
the Committee on Agriculture, Nutrition, and Forestry of 
the Senate, and make publicly available, an annual report 
that includes a list of the following: 
‘‘(i) The recipients of funds made available under 
the program. 
‘‘(ii) The activities undertaken and services pro-
vided. 
‘‘(iii) The number of current and prospective 
socially disadvantaged farmers or ranchers served and 
outcomes of such service. 
‘‘(iv) The problems and barriers identified by enti-
ties in trying to increase participation by current and 
prospective 
socially 
disadvantaged 
farmers 
or 
ranchers.’’. 
(3) FUNDING AND LIMITATION ON USE OF FUNDS.—Section 
2501(a)(4) of the Food, Agriculture, Conservation, and Trade 
Act of 1990 (7 U.S.C. 2279(a)(4)) is amended— 
(A) by striking subparagraph (A) and inserting the 
following new subparagraph: 
‘‘(A) IN
GENERAL.—Of the funds of the Commodity 
Credit Corporation, the Secretary shall make available to 
carry out this section— 
‘‘(i) $15,000,000 for fiscal year 2009; and 
‘‘(ii) $20,000,000 for each of fiscal years 2010 
through 2012.’’. 
(B) by adding at the end the following new subpara-
graph: 
‘‘(C) LIMITATION ON USE OF FUNDS FOR ADMINISTRATIVE 
EXPENSES.—Not more than 5 percent of the amounts made 
available under subparagraph (A) for a fiscal year may 
be used for expenses related to administering the program 
under this section.’’. 
(b) ELIGIBLE ENTITY DEFINED.—Section 2501(e)(5)(A)(ii) of the 
Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 
2279(e)(5)(A)(ii)) is amended by striking ‘‘work with socially dis-
advantaged farmers or ranchers during the 2-year period’’ and 
inserting ‘‘work with, and on behalf of, socially disadvantaged 
farmers or ranchers during the 3-year period’’.
H. R. 6124—557 
SEC. 14005. ACCURATE DOCUMENTATION IN THE CENSUS OF AGRI-
CULTURE AND CERTAIN STUDIES. 
Section 2501 of the Food, Agriculture, Conservation, and Trade 
Act of 1990 (7 U.S.C. 2279) is amended by adding at the end 
the following: 
‘‘(h) ACCURATE DOCUMENTATION.—The Secretary shall ensure, 
to the maximum extent practicable, that the Census of Agriculture 
and studies carried out by the Economic Research Service accurately 
document the number, location, and economic contributions of 
socially disadvantaged farmers or ranchers in agricultural produc-
tion.’’. 
SEC. 14006. TRANSPARENCY AND ACCOUNTABILITY FOR SOCIALLY DIS-
ADVANTAGED FARMERS OR RANCHERS. 
Section 2501A of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 2279–1) is amended by striking sub-
section (c) and inserting the following new subsections: 
‘‘(c) COMPILATION OF PROGRAM PARTICIPATION DATA.— 
‘‘(1) ANNUAL REQUIREMENT.—For each county and State 
in the United States, the Secretary of Agriculture (referred 
to in this section as the ‘Secretary’) shall annually compile 
program application and participation rate data regarding 
socially disadvantaged farmers or ranchers by computing for 
each program of the Department of Agriculture that serves 
agricultural producers and landowners— 
‘‘(A) raw numbers of applicants and participants by 
race, ethnicity, and gender, subject to appropriate privacy 
protections, as determined by the Secretary; and 
‘‘(B) the application and participation rate, by race, 
ethnicity, and gender, as a percentage of the total participa-
tion rate of all agricultural producers and landowners. 
‘‘(2) AUTHORITY TO COLLECT DATA.—The heads of the agen-
cies of the Department of Agriculture shall collect and transmit 
to the Secretary any data, including data on race, gender, 
and ethnicity, that the Secretary determines to be necessary 
to carry out paragraph (1). 
‘‘(3) REPORT.—Using the technologies and systems of the 
National Agricultural Statistics Service, the Secretary shall 
compile and present the data compiled under paragraph (1) 
for each program described in that paragraph in a manner 
that includes the raw numbers and participation rates for— 
‘‘(A) the entire United States; 
‘‘(B) each State; and 
‘‘(C) each county in each State. 
‘‘(4) PUBLIC AVAILABILITY OF REPORT.—The Secretary shall 
maintain and make readily available to the public, via website 
and otherwise in electronic and paper form, the report described 
in paragraph (3). 
‘‘(d) LIMITATIONS ON USE OF DATA.— 
‘‘(1) PRIVACY PROTECTIONS.—In carrying out this section, 
the Secretary shall not disclose the names or individual data 
of any program participant. 
‘‘(2) AUTHORIZED USES.—The data under this section shall 
be used exclusively for the purposes described in subsection 
(a).
H. R. 6124—558 
‘‘(3) LIMITATION.—Except as otherwise provided, the data 
under this section shall not be used for the evaluation of 
individual applications for assistance.’’. 
SEC. 14007. OVERSIGHT AND COMPLIANCE. 
The Secretary, acting through the Assistant Secretary for Civil 
Rights of the Department of Agriculture, shall use the reports 
described in subsection (c) of section 2501A of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 2279–1), as amended 
by section 14006, in the conduct of oversight and evaluation of 
civil rights compliance. 
SEC. 14008. MINORITY FARMER ADVISORY COMMITTEE. 
(a) ESTABLISHMENT.—Not later than 18 months after the date 
of the enactment of this Act, the Secretary of Agriculture shall 
establish an advisory committee, to be known as the ‘‘Advisory 
Committee on Minority Farmers’’ (in this section referred to as 
the ‘‘Committee’’). 
(b) DUTIES.—The Committee shall provide advice to the Sec-
retary on— 
(1) the implementation of section 2501 of the Food, Agri-
culture, Conservation, and Trade Act of 1990 (7 U.S.C. 2279); 
(2) methods of maximizing the participation of minority 
farmers and ranchers in Department of Agriculture programs; 
and 
(3) civil rights activities within the Department as such 
activities relate to participants in such programs. 
(c) MEMBERSHIP.— 
(1) IN GENERAL.—The Committee shall be composed of not 
more than 15 members, who shall be appointed by the Sec-
retary, and shall include— 
(A) not less than four socially disadvantaged farmers 
or ranchers (as defined in section 2501(e)(2) of the Food, 
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 
2279(e)(2))); 
(B) not less than two representatives of nonprofit 
organizations with a history of working with minority 
farmers and ranchers; 
(C) not less than two civil rights professionals; 
(D) not less than two representatives of institutions 
of higher education with demonstrated experience working 
with minority farmers and ranchers; and 
(E) such other persons as the Secretary considers 
appropriate. 
(2) EX-OFFICIO MEMBERS.—The Secretary may appoint such 
employees of the Department of Agriculture as the Secretary 
considers appropriate to serve as ex-officio members of the 
Committee. 
SEC. 14009. NATIONAL APPEALS DIVISION. 
Section 280 of the Department of Agriculture Reorganization 
Act of 1994 (7 U.S.C. 7000) is amended— 
(1) by striking ‘‘On the return’’ and inserting the following: 
‘‘(a) IN GENERAL.—On the return’’; and 
(2) by adding at the end the following: 
‘‘(b) REPORTS.—
H. R. 6124—559 
‘‘(1) IN GENERAL.—Not later than 180 days after the date 
of the enactment of this subsection, and every 180 days there-
after, the head of each agency shall submit to the Committee 
on Agriculture of the House of Representatives and the Com-
mittee on Agriculture, Nutrition, and Forestry of the Senate, 
and publish on the website of the Department, a report that 
includes— 
‘‘(A) a description of all cases returned to the agency 
during the period covered by the report pursuant to a 
final determination of the Division; 
‘‘(B) the status of implementation of each final deter-
mination; and 
‘‘(C) if the final determination has not been imple-
mented— 
‘‘(i) the reason that the final determination has 
not been implemented; and 
‘‘(ii) the projected date of implementation of the 
final determination. 
‘‘(2) UPDATES.—Each month, the head of each agency shall 
publish on the website of the Department any updates to the 
reports submitted under paragraph (1).’’. 
SEC. 14010. REPORT OF CIVIL RIGHTS COMPLAINTS, RESOLUTIONS, 
AND ACTIONS. 
Each year, the Secretary shall— 
(1) prepare a report that describes, for each agency of 
the Department of Agriculture— 
(A) the number of civil rights complaints filed that 
relate to the agency, including whether a complaint is 
a program complaint or an employment complaint; 
(B) the length of time the agency took to process each 
civil rights complaint; 
(C) the number of proceedings brought against the 
agency, including the number of complaints described in 
paragraph (1) that were resolved with a finding of discrimi-
nation; and 
(D) the number and type of personnel actions taken 
by the agency following resolution of civil rights complaints; 
(2) submit to the Committee on Agriculture of the House 
of Representatives and the Committee on Agriculture, Nutri-
tion, and Forestry of the Senate a copy of the report; and 
(3) make the report available to the public by posting 
the report on the website of the Department. 
SEC. 14011. SENSE OF CONGRESS RELATING TO CLAIMS BROUGHT 
BY SOCIALLY DISADVANTAGED FARMERS OR RANCHERS. 
It is the sense of Congress that all pending claims and class 
actions brought against the Department of Agriculture by socially 
disadvantaged farmers or ranchers (as defined in section 355(e) 
of the Consolidated Farm and Rural Development Act (7 U.S.C. 
2003(e)), including Native American, Hispanic, and female farmers 
or ranchers, based on racial, ethnic, or gender discrimination in 
farm program participation should be resolved in an expeditious 
and just manner. 
SEC. 14012. DETERMINATION ON MERITS OF PIGFORD CLAIMS. 
(a) DEFINITIONS.—In this section:
H. R. 6124—560 
(1) CONSENT DECREE.—The term ‘‘consent decree’’ means 
the consent decree in the case of Pigford v. Glickman, approved 
by the United States District Court for the District of Columbia 
on April 14, 1999. 
(2) DEPARTMENT.—The term ‘‘Department’’ means the 
Department of Agriculture. 
(3) PIGFORD CLAIM.—The term ‘‘Pigford claim’’ means a 
discrimination complaint, as defined by section 1(h) of the con-
sent decree and documented under section 5(b) of the consent 
decree. 
(4) PIGFORD
CLAIMANT.—The term ‘‘Pigford claimant’’ 
means an individual who previously submitted a late-filing 
request under section 5(g) of the consent decree. 
(b) DETERMINATION
ON MERITS.—Any Pigford claimant who 
has not previously obtained a determination on the merits of a 
Pigford claim may, in a civil action brought in the United States 
District Court for the District of Columbia, obtain that determina-
tion. 
(c) LIMITATION.— 
(1) IN GENERAL.—Subject to paragraph (2), all payments 
or debt relief (including any limitation on foreclosure under 
subsection (h)) shall be made exclusively from funds made 
available under subsection (i). 
(2) MAXIMUM AMOUNT.—The total amount of payments and 
debt relief pursuant to actions commenced under subsection 
(b) shall not exceed $100,000,000. 
(d) INTENT OF CONGRESS AS TO REMEDIAL NATURE OF SEC-
TION.—It is the intent of Congress that this section be liberally 
construed so as to effectuate its remedial purpose of giving a full 
determination on the merits for each Pigford claim previously 
denied that determination. 
(e) LOAN DATA.— 
(1) REPORT TO PERSON SUBMITTING PETITION.— 
(A) IN GENERAL.—Not later than 120 days after the 
Secretary receives notice of a complaint filed by a claimant 
under subsection (b), the Secretary shall provide to the 
claimant a report on farm credit loans and noncredit bene-
fits, as appropriate, made within the claimant’s county 
(or if no documents are found, within an adjacent county 
as determined by the claimant), by the Department during 
the period beginning on January 1 of the year preceding 
the period covered by the complaint and ending on 
December 31 of the year following the period. 
(B) REQUIREMENTS.—A report under subparagraph (A) 
shall contain information on all persons whose application 
for a loan or benefit was accepted, including— 
(i) the race of the applicant; 
(ii) the date of application; 
(iii) the date of the loan or benefit decision, as 
appropriate; 
(iv) the location of the office making the loan or 
benefit decision, as appropriate; 
(v) all data relevant to the decisionmaking process 
for the loan or benefit, as appropriate; and 
(vi) all data relevant to the servicing of the loan 
or benefit, as appropriate.