In the House of Representatives, U. S.,
October 3, 1994.
Resolved, That the House agree to the amendment of
the Senate to the bill (H.R. 4217) entitled ‘‘An Act to reform
the Federal crop insurance program, and for other purposes’’,
with the following
AMENDMENT:
Strike out all after the enacting clause, and insert:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Federal Crop Insurance Reform and Department of Agri-
culture Reorganization Act of 1994’’.
(b) TABLE OF CONTENTS.—The table of contents of this
Act is as follows:
Sec. 1. Short title; table of contents.
TITLE I—FEDERAL CROP INSURANCE REFORM
Sec. 101. Short title; references.
Sec. 102. Definitions.
Sec. 103. Members of Board of Directors of Corporation.
Sec. 104. General powers.
Sec. 105. Personnel.
Sec. 106. Crop insurance.
Sec. 107. Crop insurance yield coverage.
Sec. 108. Preemption.
Sec. 109. Advisory Committee.
Sec. 110. Funding.
Sec. 111. Noninsured crop disaster assistance.
Sec. 112. Payment and income limitations.
Sec. 113. Producer eligibility.
Sec. 114. Ineligibility for catastrophic risk and noninsured assistance payments.
Sec. 115. Elimination of gender references.
Sec. 116. Prevented planting.
Sec. 117. Report on improving dissemination of crop insurance information.
Sec. 118. Crop insurance provider evaluation.
Sec. 119. Conforming amendments.
Sec. 120. Effective date.
TITLE II—DEPARTMENT OF AGRICULTURE
REORGANIZATION
Sec. 201. Short title.
Sec. 202. Purpose.
Sec. 203. Definitions.
Subtitle A—General Reorganization Authorities
Sec. 211. Transfer of Department functions to Secretary of Agriculture.
Sec. 212. Authority of Secretary to delegate transferred functions.
Sec. 213. Reductions in number of department personnel.
Sec. 214. Consolidation of headquarters offices.
Sec. 215. Combination of field offices.
Sec. 216. Improvement of information sharing.
Sec. 217. Reports by the Secretary.
Sec. 218. Assistant Secretaries of Agriculture.
Sec. 219. Pay increases prohibited.
Subtitle B—Farm and Foreign Agricultural Services
Sec. 225. Under Secretary of Agriculture for Farm and Foreign Agricultural
Services.
Sec. 226. Consolidated Farm Service Agency.
Sec. 227. State, county, and area committees.
Subtitle C—Rural Economic and Community Development
Sec. 231. Under Secretary of Agriculture for Rural Economic and Community
Development.
Sec. 232. Rural Utilities Service.
Sec. 233. Rural Housing and Community Development Service.
Sec. 234. Rural Business and Cooperative Development Service.
Sec. 235. Conforming amendments regarding Rural Electrification Administra-
tion.
Subtitle D—Food, Nutrition, and Consumer Services
Sec. 241. Under Secretary of Agriculture for Food, Nutrition, and Consumer
Services.
Subtitle E—Natural Resources and Environment
Sec. 245. Under Secretary of Agriculture for Natural Resources and Environ-
ment.
Sec. 246. Natural Resources Conservation Service.
Sec. 247. Reorganization of Forest Service.
Subtitle F—Research, Education, and Economics
Sec. 251. Under Secretary of Agriculture for Research, Education, and Econom-
ics.
Sec. 252. Program staff.
Subtitle G—Food Safety
Sec. 261. Under Secretary of Agriculture for Food Safety.
Sec. 262. Conditions for implementation of alterations in the level of additives al-
lowed in animal diets.
Subtitle H—National Appeals Division
Sec. 271. Definitions.
Sec. 272. National Appeals Division and Director.
Sec. 273. Transfer of functions.
Sec. 274. Notice and opportunity for hearing.
Sec. 275. Informal hearings.
Sec. 276. Right of participants to Division hearing.
Sec. 277. Division hearings.
Sec. 278. Director review of determinations of hearing officers.
Sec. 279. Judicial review.
Sec. 280. Implementation of final determinations of Division.
Sec. 281. Conforming amendments relating to National Appeals Division.
Sec. 282. Expansion of issues covered by State mediation programs.
Sec. 283. Authorization of appropriations.
Subtitle I—Miscellaneous Reorganization Provisions
Sec. 291. Successorship provisions relating to bargaining units and exclusive rep-
resentatives.
Sec. 292. Purchase of American-made equipment and products.
Sec. 293. Miscellaneous conforming amendments.
Sec. 294. Removal of obsolete administrative provisions.
Sec. 295. Proposed conforming amendments.
Sec. 296. Termination of authority.
TITLE III—MISCELLANEOUS
Sec. 301. Poultry labeling.
Sec. 302. First Amendment rights of employees of the United States Department
of Agriculture.
Sec. 303. Adjusted cost of thrifty food plan.
Sec. 304. Office of Risk Assessment and Cost-Benefit Analysis.
Sec. 305. Fair and equitable treatment of socially disadvantaged producers.
Sec. 306. Aviation inspections.
TITLE I—FEDERAL CROP
INSURANCE REFORM
SEC. 101. SHORT TITLE; REFERENCES.
(a) SHORT TITLE.—This title may be cited as the
‘‘Federal Crop Insurance Reform Act of 1994’’.
(b) REFERENCES
TO FEDERAL CROP INSURANCE
ACT.—Except as otherwise expressly provided, whenever in
this title an amendment or repeal is expressed in terms of
an amendment to, or repeal of, a section or other provision,
the reference shall be considered to be made to a section or
other provision of the Federal Crop Insurance Act (7 U.S.C.
1501 et seq.).
SEC. 102. DEFINITIONS.
(a) IN GENERAL.—Section 502 (7 U.S.C. 1502) is
amended—
(1) by striking the section heading and ‘‘SEC.
502.’’ and inserting the following:
‘‘SEC. 502. PURPOSE AND DEFINITIONS.
‘‘(a) PURPOSE.—’’; and
(2) by adding at the end the following new sub-
section:
‘‘(b) DEFINITIONS.—As used in this title:
‘‘(1) ADDITIONAL COVERAGE.—The term ‘addi-
tional coverage’ means a plan of crop insurance cov-
erage providing a level of coverage greater than the
level available under catastrophic risk protection.
‘‘(2) APPROVED
INSURANCE
PROVIDER.—The
term ‘approved insurance provider’ means a private
insurance provider that has been approved by the
Corporation to provide insurance coverage to produc-
ers participating in the Federal crop insurance pro-
gram established under this title.
‘‘(3) BOARD.—The term ‘Board’ means the
Board of Directors of the Corporation established
under section 505(a).
‘‘(4) CORPORATION.—The term ‘Corporation’
means the Federal Crop Insurance Corporation estab-
lished under section 503.
‘‘(5) DEPARTMENT.—The term ‘Department’
means the United States Department of Agriculture.
‘‘(6) LOSS RATIO.—The term ‘loss ratio’ means
the ratio of all sums paid by the Corporation as in-
demnities under any eligible crop insurance policy to
that portion of the premium designated for antici-
pated losses and a reasonable reserve, other than that
portion of the premium designated for operating and
administrative expenses.
‘‘(7) SECRETARY.—The term ‘Secretary’ means
the Secretary of Agriculture.
‘‘(8) TRANSITIONAL
YIELD.—The term ‘transi-
tional yield’ means the maximum average production
per acre or equivalent measure that is assigned to
acreage for a crop year by the Corporation in accord-
ance with the regulations of the Corporation whenever
the producer fails—
‘‘(A) to certify that acceptable documenta-
tion of production and acreage for the crop year
is in the possession of the producer; or
‘‘(B) to present the acceptable documenta-
tion on the demand of the Corporation or an in-
surance company reinsured by the Corpora-
tion.’’.
(b) CONFORMING AMENDMENTS.—
(1) The first sentence of section 503 (7 U.S.C.
1503) is amended by striking ‘‘(herein called the Cor-
poration)’’.
(2) Section 504 (7 U.S.C. 1504) is amended—
(A) in subsection (a), by striking ‘‘Board of
Directors of the Corporation’’ and inserting
‘‘Board’’; and
(B) in subsection (d), by striking ‘‘Federal
Crop Insurance Corporation’’ and inserting
‘‘Corporation’’.
(3) The first sentence of section 505(a) (7 U.S.C.
1505(a)) is amended by striking ‘‘(hereinafter called
the ‘Board’)’’.
(4) Except in section 502, the Act is amended—
(A) by striking ‘‘Board of Directors’’ each
place it appears and inserting ‘‘Board’’;
(B) by striking ‘‘Department of Agri-
culture’’ each place it appears and inserting
‘‘Department’’; and
(C) by striking ‘‘Secretary of Agriculture’’
each place it appears and inserting ‘‘Secretary’’.
SEC. 103. MEMBERS OF BOARD OF DIRECTORS OF COR-
PORATION.
The second sentence of section 505(a) (7 U.S.C.
1505(a)) is amended—
(1) by striking ‘‘or Assistant Secretary’’ the first
place it appears; and
(2) by striking ‘‘the Under Secretary or Assist-
ant Secretary of Agriculture responsible for the farm
credit programs of the Department of Agriculture’’
and inserting ‘‘one additional Under Secretary of Ag-
riculture (as designated by the Secretary of Agri-
culture)’’.
SEC. 104. GENERAL POWERS.
Section 506 (7 U.S.C. 1506) is amended—
(1) by redesignating subsections (j) through (n)
as subsections (k) through (o), respectively;
(2) by inserting after subsection (i) the following
new subsection:
‘‘(j) SETTLING CLAIMS.—The Corporation shall have
the authority to make final and conclusive settlement and
adjustment of any claim by or against the Corporation or
a fiscal officer of the Corporation.’’;
(3) in subsection (l) (as so redesignated)—
(A) in the first sentence, by inserting ‘‘, and
issue regulations,’’ after ‘‘agreements’’; and
(B) in the second sentence, by striking ‘‘con-
tracts or agreements’’ each place it appears and
inserting ‘‘contracts, agreements, or regulations’’;
(4) in subsection (n)(1) (as so redesignated), by
striking subparagraph (B) and inserting the following
new subparagraph:
‘‘(B) disqualify the person from purchasing
catastrophic 
risk 
protection 
or 
receiving
noninsured assistance for a period of not to ex-
ceed 2 years, or from receiving any other benefit
under this title for a period of not to exceed 10
years.’’;
(5) in subsection (o) (as so redesignated)—
(A) 
by 
redesignating 
paragraphs 
(1)
through (4) as subparagraphs (A) through (D)
and aligning the margins of each subparagraph
with the margins of subparagraph (A) of sub-
section (n)(1) (as redesignated by paragraph
(1));
(B) by striking ‘‘(o) ACTUARIAL SOUND-
NESS.—The Corporation’’ and inserting the fol-
lowing:
‘‘(o) ACTUARIAL SOUNDNESS.—
‘‘(1) PROJECTED LOSS RATIO AS OF OCTOBER 1,
1995.—The Corporation’’;
(C) in subparagraph (A) (as redesignated
by subparagraph (A)), by striking ‘‘from obtain-
ing adequate Federal crop insurance, as deter-
mined by the Corporation’’ and inserting ‘‘(as
defined by the Secretary) from obtaining Federal
crop insurance’’;
(D) in subparagraph (C) (as so redesig-
nated)—
(i) by inserting ‘‘, agents, and loss ad-
justers’’ after ‘‘participating producers’’;
and
(ii) by inserting ‘‘, agents, and loss ad-
justers’’ after ‘‘identify insured producers’’;
and
(E) by adding at the end the following new
paragraphs:
‘‘(2) PROJECTED LOSS RATIO AS OF OCTOBER 1,
1998.—The Corporation shall take such actions, in-
cluding the establishment of adequate premiums, as
are necessary to improve the actuarial soundness of
Federal multiperil crop insurance made available
under this title to achieve, on and after October 1,
1998, an overall projected loss ratio of not greater
than 1.075.
‘‘(3) NONSTANDARD CLASSIFICATION SYSTEM.—
To the extent that the Corporation uses the non-
standard classification system, the Corporation shall
apply the system to all insured producers in a fair
and consistent manner.’’; and
(6) by adding at the end the following new sub-
sections:
‘‘(p) REGULATIONS.—The Secretary and the Corpora-
tion are each authorized to issue such regulations as are
necessary to carry out this title.
‘‘(q) PROGRAM COMPLIANCE.—
‘‘(1) TIMELINESS.—The Corporation shall work
actively with approved insurance providers to address
program compliance and integrity issues as the issues
develop.
‘‘(2) NOTIFICATION
OF
COMPLIANCE
PROB-
LEMS.—The Corporation shall notify in writing any
approved insurance provider with whom the Corpora-
tion has an agreement under this title of any error,
omission, or failure to follow Corporation regulations
or procedures for which the approved insurance pro-
vider may be responsible and which may result in a
debt owed the Corporation. The notice shall be given
within 3 years of the end of the insurance period dur-
ing which the error, omission, or failure is alleged to
have occurred, except that this time limit shall not
apply with respect to errors, omissions, or procedural
violations that are willful or intentional. The failure
to timely provide the notice required under this sub-
section shall relieve the approved insurance provider
from the debt owed the Corporation.
‘‘(r) PURCHASE OF AMERICAN-MADE EQUIPMENT AND
PRODUCTS.—
‘‘(1) SENSE OF CONGRESS.—It is the sense of
Congress that, to the greatest extent practicable, all
equipment and products purchased by the Corpora-
tion using funds made available to the Corporation
should be American-made.
‘‘(2) NOTICE REQUIREMENT.—In providing fi-
nancial assistance to, or entering into any contract
with, any entity for the purchase of equipment and
products to carry out this title, the Corporation, to
the greatest extent practicable, shall provide to the en-
tity a notice describing the statement made in para-
graph (1).’’.
SEC. 105. PERSONNEL.
Section 507 (7 U.S.C. 1507) is amended—
(1) in subsection (a), by striking ‘‘, and county
crop insurance committeemen’’;
(2) in subsection (d), by striking ‘‘of this Act,’’
and all that follows through ‘‘agency’’; and
(3) by adding at the end the following new sub-
section:
‘‘(g)(1) The Corporation shall establish a management-
level position to be known as the Specialty Crops Coordina-
tor.
‘‘(2) The Specialty Crops Coordinator shall have pri-
mary responsibility for addressing the needs of specialty
crop producers, and for providing information and advice,
in connection with the activities of the Corporation to im-
prove and expand the insurance program for specialty
crops. In carrying out this paragraph, the Specialty Crops
Coordinator shall act as the liaison of the Corporation with
representatives of specialty crop producers and assist the
Corporation with the knowledge, expertise, and familiarity
of the producers with risk management and production is-
sues pertaining to specialty crops.
‘‘(3) The Specialty Crops Coordinator shall use infor-
mation collected from Corporation field office directors in
States in which specialty crops have a significant economic
effect and from other sources, including the extension service
and colleges and universities.’’.
SEC. 106. CROP INSURANCE.
Section 508 (7 U.S.C. 1508) is amended to read as
follows:
‘‘SEC. 508. CROP INSURANCE.
‘‘(a) AUTHORITY TO OFFER INSURANCE.—
‘‘(1) IN GENERAL.—If sufficient actuarial data
are available (as determined by the Corporation), the
Corporation may insure, or provide reinsurance for
insurers of, producers of agricultural commodities
grown in the United States under 1 or more plans of
insurance determined by the Corporation to be adapt-
ed to the agricultural commodity concerned. To qual-
ify for coverage under a plan of insurance, the losses
of the insured commodity must be due to drought,
flood, or other natural disaster (as determined by the
Secretary).
‘‘(2) PERIOD.—Except in the cases of tobacco
and potatoes, insurance shall not extend beyond the
period during which the insured commodity is in the
field. As used in the preceding sentence, in the case
of an aquacultural species, the term ‘field’ means the
environment in which the commodity is produced.
‘‘(3) EXCLUSIONS.—Insurance provided under
this subsection shall not cover losses due to—
‘‘(A) the neglect or malfeasance of the pro-
ducer;
‘‘(B) the failure of the producer to reseed to
the same crop in such areas and under such cir-
cumstances as it is customary to reseed; or
‘‘(C) the failure of the producer to follow
good farming practices (as determined by the
Secretary).
‘‘(4) EXPANSION TO OTHER AREAS OR SINGLE
PRODUCERS.—
‘‘(A) AREA
EXPANSION.—The Corporation
may offer plans of insurance or reinsurance for
production of agricultural commodities in the
Commonwealth of Puerto Rico, the Virgin Is-
lands, Guam, American Samoa, the Common-
wealth of the Northern Mariana Islands, the Re-
public of the Marshall Islands, the Federated
States of Micronesia, and the Republic of Palau
in the same manner as provided in this section
for production of agricultural commodities in the
United States.
‘‘(B) PRODUCER EXPANSION.—In an area
in the United States or specified in subpara-
graph (A) where crop insurance is not available
for a particular agricultural commodity, the
Corporation may offer to enter into a written
agreement with an individual producer operat-
ing in the area for insurance coverage under this
title if the producer has actuarially sound data
relating to the production by the producer of the
commodity and the data is acceptable to the Cor-
poration.
‘‘(5) DISSEMINATION
OF
CROP
INSURANCE
IN-
FORMATION.—The Corporation shall make available
to producers through local offices of the Department—
‘‘(A) current and complete information on
all aspects of Federal crop insurance; and
‘‘(B) a listing of insurance agents and com-
panies offering to sell crop insurance in the area
of the producers.
‘‘(6) 
ADDITION
OF
NEW
AND
SPECIALTY
CROPS.—
‘‘(A) DATA
COLLECTION.—Not later than
180 days after the date of enactment of this
paragraph, the Secretary shall issue guidelines
for publication in the Federal Register for data
collection to assist the Corporation in formulat-
ing crop insurance policies for new and specialty
crops.
‘‘(B) ADDITION OF NEW CROPS.—Not later
than 1 year after the date of enactment of this
paragraph, and annually thereafter, the Cor-
poration shall report to Congress on the progress
and expected timetable for expanding crop insur-
ance coverage under this title to new and spe-
cialty crops.
‘‘(C) ADDITION OF DIRECT SALE PERISH-
ABLE CROPS.—Not later than 1 year after the
date of enactment of this paragraph, the Cor-
poration shall report to Congress on the feasibil-
ity of offering a crop insurance program de-
signed to meet the needs of specialized producers
of vegetables and other perishable crops who
market through direct marketing channels.
‘‘(b) CATASTROPHIC RISK PROTECTION.—
‘‘(1) IN GENERAL.—The Corporation shall offer a
catastrophic risk protection plan to indemnify pro-
ducers for crop loss due to loss of yield or prevented
planting, if provided by the Corporation, when the
producer is unable, because of drought, flood, or other
natural disaster (as determined by the Secretary), to
plant other crops for harvest on the acreage for the
crop year.
‘‘(2) AMOUNT OF COVERAGE.—
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B)—
‘‘(i) in the case of each of the 1995
through 1998 crop years, catastrophic risk
protection shall offer a producer coverage
for a 50 percent loss in yield, on an indi-
vidual yield or area yield basis, indem-
nified at 60 percent of the expected market
price, or a comparable coverage (as deter-
mined by the Corporation); and
‘‘(ii) in the case of each of the 1999
and subsequent crop years, catastrophic risk
protection shall offer a producer coverage
for a 50 percent loss in yield, on an indi-
vidual yield or area yield basis, indem-
nified at 55 percent of the expected market
price, or a comparable coverage (as deter-
mined by the Corporation).
‘‘(B) REDUCTION
IN
ACTUAL
PAYMENT.—
The amount paid to a producer on a claim
under catastrophic risk protection may reflect a
reduction that is proportional to the out-of-pock-
et expenses that are not incurred by the producer
as a result of not planting, growing, or harvest-
ing the crop for which the claim is made, as de-
termined by the Corporation.
‘‘(3) YIELD AND LOSS BASIS.—A producer shall
have the option of basing the catastrophic coverage of
the producer on an individual yield and loss basis or
on an area yield and loss basis, if both options are
offered by the Corporation.
‘‘(4) SALE OF CATASTROPHIC RISK COVERAGE.—
‘‘(A) IN GENERAL.—Catastrophic risk cov-
erage may be offered by—
‘‘(i) approved insurance providers, if
available in an area; and
‘‘(ii) at the option of the Secretary that
is based on considerations of need, local of-
fices of the Department.
‘‘(B) NEED.—For purposes of considering
need under subparagraph (A)(ii), the Secretary
may take into account the most efficient and
cost-effective use of resources, the availability of
personnel, fairness to local producers, the needs
and convenience of local producers, and the
availability of private insurance carriers.
‘‘(5) ADMINISTRATIVE FEE.—
‘‘(A) FEE REQUIRED.—Producers shall pay
an administrative fee for catastrophic risk pro-
tection. The administrative fee for each producer
shall be $50 per crop per county, but not to ex-
ceed $200 per producer per county up to a maxi-
mum of $600 per producer for all counties in
which a producer has insured crops. The admin-
istrative fee shall be paid by the producer at the
time the producer applies for catastrophic risk
protection.
‘‘(B) USE OF FEES.—
‘‘(i) FEES UP TO $100.—
‘‘(I) FEES COLLECTED BY USDA
OFFICES.—Not more than $100 of the
administrative fees paid by a producer
for catastrophic risk coverage that are
collected by an office of the Department
shall be credited to the appropriations
account providing funds for the pay-
ment of operating and administrative
expenses incurred for the delivery of
catastrophic risk protection under this
section. The fees shall be collected in
accordance with appropriation Acts
and shall be available until expended
without fiscal year limitation for the
payment of the expenses.
‘‘(II) FEES
COLLECTED
BY
AP-
PROVED INSURANCE PROVIDERS.—Not
more than $100 of the administrative
fees paid by a producer for cata-
strophic risk coverage that are collected
by an approved insurance provider
shall be retained by the provider as
payment for operating and adminis-
trative expenses incurred for the deliv-
ery of catastrophic risk protection.
‘‘(ii) FEES IN EXCESS OF $100.—Not-
withstanding the authority granted to the
Secretary under the Federal Crop Insurance
Corporation account provisions of the Agri-
cultural, Rural Development, Food and
Drug Administration, and Related Agencies
Appropriations Act, 1995, all fees collected
under this subsection in excess of $100 per
producer per county shall be deposited in
the crop insurance fund established under
section 516(c), to be available for the pro-
grams and activities of the Corporation.
‘‘(C) WAIVER
OF
FEE.—The Corporation
shall waive the administrative fee for limited re-
source farmers, as defined by the Corporation.
‘‘(6) PARTICIPATION
REQUIREMENT.—A pro-
ducer may obtain catastrophic risk coverage for a
crop of the producer on land in the county only if the
producer obtains the coverage for the crop on all in-
surable land of the producer in the county.
‘‘(7) 
ELIGIBILITY
FOR
DEPARTMENT
PRO-
GRAMS.—
‘‘(A) IN GENERAL.—To be eligible for any
price support or production adjustment pro-
gram, the conservation reserve program, or any
benefit described in section 371 of the Consoli-
dated Farm and Rural Development Act, the
producer must obtain at least the catastrophic
level of insurance for each crop of economic sig-
nificance grown on each farm in the county in
which the producer has an interest, if insurance
is available in the county for the crop.
‘‘(B) DEFINITION
OF
CROP
OF
ECONOMIC
SIGNIFICANCE.—As used in this paragraph, the
term ‘crop of economic significance’ means a
crop that has contributed, or is expected to con-
tribute, 10 percent or more of the total expected
value of all crops grown by the producer.
‘‘(8) LIMITATION DUE TO RISK.—The Corpora-
tion may limit catastrophic risk coverage in any
county or area, or on any farm, on the basis of the
insurance risk concerned.
‘‘(9) 
TRANSITIONAL
COVERAGE
FOR
1995
CROPS.—Effective only for a 1995 crop planted or for
which insurance attached prior to January 1, 1995,
the Corporation shall allow producers of the crops
until not later than the end of the 180-day period be-
ginning on the date of enactment of the Federal Crop
Insurance Reform Act of 1994 to obtain catastrophic
risk protection for the crop. On enactment of such
Act, a producer who made timely purchases of a crop
insurance policy before the date of enactment of such
Act, under the provisions of this title then in effect,
shall be eligible for the same benefits to which a pro-
ducer would be entitled under comparable additional
coverage under subsection (c).
‘‘(10) SIMPLIFICATION.—
‘‘(A) 
CATASTROPHIC
RISK
PROTECTION
PLANS.—In developing and carrying out the
policies and procedures for a catastrophic risk
protection plan under this title, the Corporation
shall, to the maximum extent practicable, mini-
mize the paperwork required and the complexity
and costs of procedures governing applications
for, processing, and servicing of the plan for all
parties involved.
‘‘(B) OTHER PLANS.—To the extent that the
policies and procedures developed under subpara-
graph (A) may be applied to other plans of in-
surance offered under this title without jeopard-
izing the actuarial soundness or integrity of the
crop insurance program, the Corporation shall
apply the policies and procedures to the other
plans of insurance within a reasonable period of
time (as determined by the Corporation) after
the effective date of this paragraph.
‘‘(c) GENERAL COVERAGE LEVELS.—
‘‘(1) ADDITIONAL COVERAGE GENERALLY.—
‘‘(A) IN GENERAL.—The Corporation shall
offer to producers of agricultural commodities
grown in the United States plans of crop insur-
ance that provide additional coverage.
‘‘(B) PURCHASE.—To be eligible for addi-
tional coverage, a producer must apply to an ap-
proved insurance provider for purchase of addi-
tional coverage if the coverage is available from
an approved insurance provider. If additional
coverage is unavailable privately, the Corpora-
tion may offer additional coverage plans of in-
surance directly to producers.
‘‘(2) TRANSFER OF RELEVANT INFORMATION.—If
a producer has already applied for catastrophic risk
protection at the local office of the Department and
elects to purchase additional coverage, the relevant in-
formation for the crop of the producer shall be trans-
ferred to the approved insurance provider servicing
the additional coverage crop policy.
‘‘(3) YIELD AND LOSS BASIS.—A producer shall
have the option of purchasing additional coverage
based on an individual yield and loss basis or on an
area yield and loss basis, if both options are offered
by the Corporation.
‘‘(4) LEVEL OF COVERAGE.—The level of coverage
shall be dollar denominated and may be purchased at
any level not to exceed 85 percent of the individual
yield or 95 percent of the area yield (as determined
by the Corporation). Not later than the beginning of
the 1996 crop year, the Corporation shall provide
producers with information on catastrophic risk and
additional coverage in terms of dollar coverage (with-
in the allowable limits of coverage provided in this
paragraph).
‘‘(5) PRICE LEVEL.—The Corporation shall es-
tablish a price level for each commodity on which in-
surance is offered that—
‘‘(A) shall not be less than the projected
market price for the commodity (as determined
by the Corporation); or
‘‘(B) at the discretion of the Corporation,
may be based on the actual market price at the
time of harvest (as determined by the Corpora-
tion).
‘‘(6) PRICE ELECTIONS.—
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), insurance coverage shall be made
available to a producer on the basis of any price
election that equals or is less than the price elec-
tion established by the Corporation. The coverage
shall be quoted in terms of dollars per acre.
‘‘(B) MINIMUM
PRICE
ELECTIONS.—The
Corporation may establish minimum price elec-
tions below which levels of insurance shall not be
offered.
‘‘(C) WHEAT CLASSES AND MALTING BAR-
LEY.—The Corporation shall, as the Corporation
determines practicable, offer producers different
price elections for classes of wheat and malting
barley (including contract prices in the case of
malting barley), in addition to the standard
price election, that reflect different market prices,
as determined by the Corporation. The Corpora-
tion shall, as the Corporation determines prac-
ticable, offer additional coverage for each class
determined under this subparagraph and charge
a premium for each class that is actuarially
sound.
‘‘(7) FIRE AND HAIL COVERAGE.—For levels of
additional coverage equal to 65 percent or more of the
recorded or appraised average yield indemnified at
100 percent of the expected market price, or an equiv-
alent coverage, a producer may elect to delete from the
additional coverage any coverage against damage
caused by fire and hail if the producer obtains an
equivalent or greater dollar amount of coverage for
damage caused by fire and hail from an approved in-
surance provider. On written notice of the election to
the company issuing the policy providing additional
coverage and submission of evidence of substitute cov-
erage on the commodity insured, the premium of the
producer shall be reduced by an amount determined
by the Corporation to be actuarially appropriate, tak-
ing into account the actuarial value of the remaining
coverage provided by the Corporation. In no event
shall the producer be given credit for an amount of
premium determined to be greater than the actuarial
value of the protection against losses caused by fire
and hail that is included in the additional coverage
for the crop.
‘‘(8) STATE PREMIUM SUBSIDIES.—The Corpora-
tion may enter into an agreement with any State or
agency of a State under which the State or agency
may pay to the approved insurance provider an addi-
tional premium subsidy to further reduce the portion
of the premium paid by producers in the State.
‘‘(9) LIMITATIONS ON ADDITIONAL COVERAGE.—
The Board may limit the availability of additional
coverage under this subsection in any county or area,
or on any farm, on the basis of the insurance risk in-
volved. The Board shall not offer additional coverage
equal to less than 50 percent of the recorded or ap-
praised average yield indemnified at 100 percent of
the expected market price, or an equivalent coverage.
‘‘(10) ADMINISTRATIVE FEE.—
‘‘(A) FEE REQUIRED.—Except as otherwise
provided in this paragraph, if a producer elects
‘‘(C) ADDITIONAL FEE.—If a producer elects
to purchase additional coverage for a crop equal
to or exceeding 65 percent of the recorded or ap-
praised average yield and 100 percent of the ex-
pected market price or an equivalent coverage,
the producer shall pay an administrative fee of
$10 for the coverage. If a producer has already
paid an administrative fee for lesser coverage for
the crop, the fee for lesser coverage shall be re-
funded to the producer unless the producer has
paid the maximum fee for lesser coverage and re-
fund of the fee will not reduce the amount to be
paid below the maximum amount.
‘‘(D) DEPOSIT OF FEES.—Notwithstanding
the authority granted to the Secretary under the
Federal Crop Insurance Corporation account
provisions of the Agricultural, Rural Develop-
ment, Food and Drug Administration, and Re-
lated Agencies Appropriations Act, 1995, admin-
istrative fees collected under subparagraph (B)
in excess of $100 per producer per county and
under subparagraph (C) shall be deposited in the
insurance fund established under section 516(c)
to be available for the programs and activities of
the Corporation.
‘‘(d) PREMIUMS.—
‘‘(1) PREMIUMS
REQUIRED.—The Corporation
shall fix adequate premiums for all the plans of in-
surance of the Corporation at such rates as the Board
determines are actuarially sufficient to attain an ex-
pected loss ratio of not greater than 1.1 through Sep-
tember 30, 1998, and not greater than 1.075 after Oc-
tober 1, 1998.
‘‘(2) 
PREMIUM
AMOUNTS.—The 
premium
amounts for catastrophic risk protection under sub-
section (b) and additional coverage under subsection
(c) shall be fixed as follows:
‘‘(A) In the case of catastrophic risk protec-
tion, the amount of the premium shall be suffi-
cient to cover anticipated losses and a reasonable
reserve.
‘‘(B) In the case of additional coverage
below 65 percent of the recorded or appraised av-
erage yield indemnified at 100 percent of the ex-
pected market price, or an equivalent coverage,
but greater than 50 percent of the recorded or
appraised average yield indemnified at 100 per-
cent of the expected market price, or an equiva-
lent coverage, the amount of the premium
shall—
‘‘(i) be sufficient to cover anticipated
losses and a reasonable reserve; and
‘‘(ii) include an amount for operating
and administrative expenses, as determined
by the Corporation.
‘‘(C) In the case of additional coverage
equal to or greater than 65 percent of the re-
corded or appraised average yield indemnified at
100 percent of the expected market price, or an
equivalent coverage, the amount of the premium
shall—
‘‘(i) be sufficient to cover anticipated
losses and a reasonable reserve; and
‘‘(ii) include an amount for operating
and administrative expenses, as determined
by the Corporation, on an industry-wide
basis as a percentage of the amount of the
premium used to define loss ratio.
‘‘(e) PAYMENT OF PORTION OF PREMIUM BY CORPORA-
TION.—
‘‘(1) IN GENERAL.—For the purpose of encourag-
ing the broadest possible participation of producers in
the catastrophic risk protection provided under sub-
section (b) and the additional coverage provided
under subsection (c), the Corporation shall pay a part
of the premium in the amounts provided in accord-
ance with this subsection.
‘‘(2) AMOUNT OF PAYMENT.—The amount of the
premium to be paid by the Corporation shall be as
follows:
‘‘(A) In the case of catastrophic risk protec-
tion, the amount shall be equivalent to the pre-
mium established for catastrophic risk protection
under subsection (d)(2)(A).
‘‘(B) In the case of coverage below 65 per-
cent of the recorded or appraised average yield
indemnified at 100 percent of the expected mar-
ket price, or an equivalent coverage, but greater
than 50 percent of the recorded or appraised av-
erage yield indemnified at 100 percent of the ex-
pected market price, or an equivalent coverage,
the amount shall be equivalent to the amount of
premium established for catastrophic risk protec-
tion coverage and the amount of operating and
administrative expenses established under sub-
section (d)(2)(B).
‘‘(C) In the case of coverage equal to or
greater than 65 percent of the recorded or ap-
praised average yield indemnified at 100 percent
of the expected market price, or an equivalent
coverage, on an individual or area basis, the
amount shall be equivalent to an amount equal
to the premium established for 50 percent loss in
yield indemnified at 75 percent of the expected
market price and the amount of operating and
administrative expenses established under sub-
section (d)(2)(C).
‘‘(3) PREMIUM REDUCTION.—If an approved in-
surance provider determines that the provider may
provide insurance more efficiently than the expense
reimbursement amount established by the Corpora-
tion, the approved insurance provider may reduce,
subject to the approval of the Corporation, the pre-
mium charged the insured by an amount correspond-
ing to the efficiency. The approved insurance provider
shall apply to the Corporation for authority to reduce
the premium before making such a reduction, and the
reduction shall be subject to the rules, limitations,
and procedures established by the Corporation.
‘‘(4) INDIVIDUAL
AND
AREA
CROP
INSURANCE
COVERAGE.—The Corporation shall allow approved
insurance providers to offer a plan of insurance to
producers that combines both individual yield cov-
erage and area yield coverage at a premium rate de-
termined by the provider under the following condi-
tions:
‘‘(A) The individual yield coverage shall be
equal to or greater than catastrophic risk protec-
tion as described in subsection (b).
‘‘(B) The combined policy shall include area
yield coverage that is offered by the Corporation
or similar area coverage, as determined by the
Corporation.
‘‘(C) The Corporation shall provide reinsur-
ance on the area yield portion of the combined
policy at the request of the provider, except that
the provider shall agree to pay to the producer
any portion of the area yield and loss indemnity
payment received from the Corporation or a
commercial reinsurer that exceeds the individual
indemnity payment made by the provider to the
producer.
‘‘(D) The Corporation shall pay a part of
the premium equivalent to—
‘‘(i) the amount authorized under
paragraph (2) (except provisions regarding
operating and administrative expenses);
and
‘‘(ii) the amount of operating and ad-
ministrative expenses authorized by the Cor-
poration for the area yield coverage portion
of the combined policy.
‘‘(E) The provider shall provide all under-
writing services for the combined policy, includ-
ing the determination of individual yield cov-
erage premium rates, the terms and conditions of
the policy, and the acceptance and classification
of applicants into risk categories, subject to sub-
paragraph (F).
‘‘(F) The Corporation shall approve the
combined policy unless the Corporation deter-
mines that the policy is not actuarially sound or
that the interests of producers are not adequately
protected.
‘‘(f) ELIGIBILITY.—
‘‘(1) IN
GENERAL.—To participate in cata-
strophic risk protection coverage under this section, a
producer shall submit an application at the local of-
fice of the Department or to an approved insurance
provider.
‘‘(2) SALES CLOSING DATE.—For coverage under
this title, each producer shall purchase crop insurance
on or before the sales closing date for the crop by pro-
viding the required information and executing the re-
quired documents. Subject to the goal of ensuring ac-
tuarial soundness for the crop insurance program, the
sales closing date shall be established by the Corpora-
tion to maximize convenience to producers in obtain-
ing benefits under price and production adjustment
programs of the Department. Beginning with the
1995 crop year, the Corporation shall establish, for an
insurance policy for each insurable crop that is plant-
ed in the spring, a sales closing date that is 30 days
earlier than the corresponding sales closing date that
was established for the 1994 crop year.
‘‘(3) RECORDS AND REPORTING.—To obtain cat-
astrophic risk protection under subsection (b) or addi-
tional coverage under subsection (c), a producer
shall—
‘‘(A) provide, to the extent required by the
Corporation, records acceptable to the Corpora-
tion of historical acreage and production of the
crops for which the insurance is sought or accept
a yield determined by the Corporation; and
‘‘(B) report acreage planted and prevented
from planting by the designated acreage report-
ing date for the crop and location as established
by the Corporation.
‘‘(g) YIELD DETERMINATIONS.—
‘‘(1) IN GENERAL.—Subject to paragraph (2), the
Corporation shall establish crop insurance underwrit-
ing rules that ensure that yield coverage, as specified
in this subsection, is provided to eligible producers ob-
taining catastrophic risk protection under subsection
(b) or additional coverage under subsection (c).
‘‘(2) YIELD COVERAGE PLANS.—
‘‘(A) ACTUAL PRODUCTION HISTORY.—Sub-
ject to subparagraph (B), the yield for a crop
shall be based on the actual production history
for the crop, if the crop was produced on the
farm without penalty during each of the 4 crop
years immediately preceding the crop year for
which actual production history is being estab-
lished, building up to a production data base for
each of the 10 consecutive crop years preceding
the crop year for which actual production his-
tory is being established.
‘‘(B) ASSIGNED
YIELD.—If the producer
does not provide satisfactory evidence of the yield
of a commodity under subparagraph (A), the
producer shall be assigned a yield that is not less
than 65 percent of the transitional yield of the
producer (adjusted to reflect actual production
reflected in the records acceptable to the Corpora-
tion for continuous years), as specified in regula-
tions issued by the Corporation based on produc-
tion history requirements.
‘‘(C) AREA YIELD.—The Corporation may
offer a crop insurance plan based on an area
yield that allows an insured producer to qualify
for an indemnity if a loss has occurred in an
area (as specified by the Corporation) in which
the farm of the producer is located. Under an
area yield plan, an insured producer shall be al-
lowed to select the level of area production at
which an indemnity will be paid consistent with
such terms and conditions as are established by
the Corporation.
‘‘(D) COMMODITY-BY-COMMODITY BASIS.—A
producer may choose between individual yield or
area yield coverage or combined coverage (as
provided in subsection (e)(4)), if available, on a
commodity-by-commodity basis.
‘‘(3) TRANSITIONAL YIELDS FOR PRODUCERS OF
FEED OR FORAGE.—
‘‘(A) IN GENERAL.—If a producer does not
provide satisfactory evidence of a yield under
paragraph (2)(A), the producer shall be assigned
a yield that is at least 80 percent of the transi-
tional yield established by the Corporation (ad-
justed to reflect the actual production history of
the producer) if the Secretary determines that—
‘‘(i) the producer grows feed or forage
primarily for on-farm use in a livestock,
dairy, or poultry operation; and
‘‘(ii) over 50 percent of the net farm
income of the producer is derived from the
operation.
‘‘(B) YIELD
CALCULATION.—The Corpora-
tion shall—
‘‘(i) for the first year of participation
of a producer, provide the assigned yield
under this paragraph to the producer of feed
or forage; and
‘‘(ii) for the second year of participa-
tion of the producer, apply the actual pro-
duction history or assigned yield require-
ment, as provided in this subsection.
‘‘(C) TERMINATION
OF
AUTHORITY.—The
authority provided by this paragraph shall ter-
minate on the date that is 3 years after the effec-
tive date of this paragraph.
‘‘(h) SUBMISSION OF POLICIES AND MATERIALS TO
BOARD.—
‘‘(1) IN GENERAL.—In addition to any standard
forms or policies that the Board may require be made
available to producers under subsection (c), a person
may prepare for submission or propose to the
Board—
‘‘(A) other crop insurance policies and pro-
visions of policies; and
‘‘(B) rates of premiums for multiple peril
crop insurance pertaining to wheat, soybeans,
field corn, and any other crops determined by
the Secretary.
‘‘(2) SUBMISSION
OF
POLICIES.—A policy or
other material submitted to the Board under this sub-
section may be prepared without regard to the limita-
tions contained in this title, including the require-
ments concerning the levels of coverage and rates and
the requirement that a price level for each commodity
insured must equal the expected market price for the
commodity as established by the Board. In the case of
such a policy, the payment by the Corporation of a
portion of the premium of the policy may not exceed
the amount that would otherwise be authorized under
subsection (e).
‘‘(3) REVIEW AND APPROVAL BY THE BOARD.—
A policy or other material submitted to the Board
under this subsection shall be reviewed by the Board
and, if the Board finds that the interests of producers
are adequately protected and that any premiums
charged to the producers are actuarially appropriate,
shall be approved by the Board for reinsurance and
for sale to producers as an additional choice at actu-
arially appropriate rates and under appropriate
terms and conditions. The Corporation may enter
into more than 1 reinsurance agreement with the ap-
proved insurance provider simultaneously to facilitate
the offering of the new policies.
‘‘(4) GUIDELINES
FOR
SUBMISSION
AND
RE-
VIEW.—The Corporation shall issue regulations to es-
tablish guidelines for the submission, and Board re-
view, of policies or other material submitted to the
Board under this subsection. At a minimum, the
guidelines shall ensure the following:
‘‘(A) A proposal submitted to the Board
under this subsection shall be considered as con-
fidential commercial or financial information
for purposes of section 552(b)(4) of title 5, Unit-
ed States Code, until approved by the Board. A
proposal disapproved by the Board shall remain
confidential commercial or financial informa-
tion.
‘‘(B) The Board shall provide an applicant
with the opportunity to present the proposal to
the Board in person if the applicant so desires.
‘‘(C) The Board shall provide an applicant
with notification of intent to disapprove a pro-
posal not later than 30 days prior to making the
disapproval. An applicant that receives the noti-
fication may modify the application of the ap-
plicant. Any modification shall be considered an
original application for purposes of this para-
graph.
‘‘(D) Specific guidelines shall prescribe the
timing of submission of proposals under this sub-
section and timely consideration by the Board so
that any approved proposal may be made avail-
able to all persons reinsured by the Corporation
in a manner permitting the persons to partici-
pate, if the persons so desire, in offering such a
proposal in the first crop year in which the pro-
posal is approved by the Board for reinsurance,
premium subsidy, or other support offered by
this title.
‘‘(5) REQUIRED PUBLICATION.—Any policy, pro-
vision of a policy, or rate approved under this sub-
section shall be published as a notice in the Federal
Register and made available to all persons contract-
ing with or reinsured by the Corporation under the
terms and conditions of the contract between the Cor-
poration and the person originally submitting the
policy or other material.
‘‘(6) PILOT COST OF PRODUCTION RISK PROTEC-
TION PLAN.—
‘‘(A) IN GENERAL.—The Corporation shall
offer, to the extent practicable, a cost of produc-
tion risk protection plan of insurance that in-
demnifies producers (including new producers)
for insurable losses as provided in this para-
graph.
‘‘(B) PILOT BASIS.—The cost of production
risk protection plan shall—
‘‘(i) be established as a pilot project for
each of the 1996 and 1997 crop years; and
‘‘(ii) be carried out in a number of
counties that is determined by the Corpora-
tion to be adequate to provide a comprehen-
sive evaluation of the feasibility, effective-
ness, and demand among producers for the
plan.
‘‘(C) INSURABLE LOSS.—An insurable loss
shall be incurred by a producer if the gross in-
come of the producer (as determined by the Cor-
poration) is less than an amount determined by
the Corporation, as a result of a reduction in
yield or price resulting from an insured cause.
‘‘(D) DEFINITION OF NEW PRODUCER.—As
used in this paragraph, the term ‘new producer’
means a person that has not been actively en-
gaged in farming for a share of the production
of the insured crop for more than 2 crop years,
as determined by the Secretary.
‘‘(7) ADDITIONAL PREVENTED PLANTING POLICY
COVERAGE.—
‘‘(A) IN
GENERAL.—Beginning with the
1995 crop year, the Corporation shall offer to
producers additional prevented planting coverage
that insures producers against losses in accord-
ance with this paragraph.
‘‘(B) APPROVED INSURANCE PROVIDERS.—
Additional prevented planting coverage shall be
offered by the Corporation through approved in-
surance providers.
‘‘(C) TIMING OF LOSS.—A crop loss shall be
covered by the additional prevented planting cov-
erage if—
‘‘(i) crop insurance policies were ob-
tained for—
‘‘(I) the crop year the loss was ex-
perienced; and
‘‘(II) the crop year immediately
preceding the year of the prevented
planting loss; and
‘‘(ii) the cause of the loss occurred—
‘‘(I) after the sales closing date for
the crop in the crop year immediately
preceding the loss; and
‘‘(II) before the sales closing date
for the crop in the year in which the
loss is experienced.
‘‘(8) PILOT PROGRAM OF ASSIGNED YIELDS FOR
NEW PRODUCERS.—
‘‘(A) PROGRAM REQUIRED.—For each of the
1995 and 1996 crop years, the Corporation shall
carry out a pilot program to assign to eligible
new producers higher assigned yields than would
otherwise be assigned to the producers under sub-
section (g). The Corporation shall include in the
pilot program 30 counties that are determined
by the Corporation to be adequate to provide a
comprehensive evaluation of the feasibility, effec-
tiveness, and demand among new producers for
increased assigned yields.
‘‘(B) INCREASED ASSIGNED YIELDS.—In the
case of an eligible new producer participating in
the pilot program, the Corporation shall assign
to the new producer a yield that is equal to not
less than 110 percent of the transitional yield
otherwise established by the Corporation.
‘‘(C) ELIGIBLE NEW PRODUCER.—The Sec-
retary shall establish a definition of new pro-
ducer for purposes of determining eligibility to
participate in the pilot program.
‘‘(i) ADOPTION OF RATES AND COVERAGES.—The Cor-
poration shall adopt, as soon as practicable, rates and cov-
erages that will improve the actuarial soundness of the in-
surance operations of the Corporation for those crops that
are determined to be insured at rates that are not actuari-
ally sound, except that no rate may be increased by an
amount of more than 20 percent over the comparable rate
of the preceding crop year.
‘‘(j) CLAIMS FOR LOSSES.—
‘‘(1) IN GENERAL.—Under rules prescribed by
the Corporation, the Corporation may provide for ad-
justment and payment of claims for losses. The rules
prescribed by the Corporation shall establish stand-
ards to ensure that all claims for losses are adjusted,
to the extent practicable, in a uniform and timely
manner.
‘‘(2) DENIAL OF CLAIMS.—
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), if a claim for indemnity is denied by
the Corporation or an approved provider, an ac-
tion on the claim may be brought against the
Corporation or Secretary only in the United
States district court for the district in which the
insured farm is located.
‘‘(B) STATUTE OF LIMITATIONS.—A suit on
the claim may be brought not later than 1 year
after the date on which final notice of denial of
the claim is provided to the claimant.
‘‘(3) INDEMNIFICATION.—The Corporation shall
provide approved insurance providers with indem-
nification, including costs and reasonable attorney
fees incurred by the approved insurance provider, due
to errors or omissions on the part of the Corporation.
‘‘(k) REINSURANCE.—
‘‘(1) IN GENERAL.—Notwithstanding any other
provision of this title, the Corporation shall, to the
maximum extent practicable, provide reinsurance to
insurers approved by the Corporation that insure pro-
ducers of any agricultural commodity under 1 or
more plans acceptable to the Corporation.
‘‘(2) TERMS AND CONDITIONS.—The reinsurance
shall be provided on such terms and conditions as the
Board may determine to be consistent with sub-
sections (b) and (c) and sound reinsurance principles.
‘‘(3) SHARE OF RISK.—The reinsurance agree-
ments of the Corporation with the reinsured compa-
nies shall require the reinsured companies to bear a
sufficient share of any potential loss under the agree-
ment so as to ensure that the reinsured company will
sell and service policies of insurance in a sound and
prudent manner, taking into consideration the finan-
cial condition of the reinsured companies and the
availability of private reinsurance.
‘‘(4) RATE.—The rate established by the Board
to reimburse approved insurance providers and
agents for the administrative and operating costs of
the providers and agents shall not exceed—
‘‘(A) for the 1997 reinsurance year, 29 per-
cent of the premium used to define loss ratio;
‘‘(B) for the 1998 reinsurance year, 28 per-
cent of the premium used to define loss ratio;
and
‘‘(C) for the 1999 reinsurance year, 27.5
percent of the premium used to define loss ratio.
‘‘(5) COST AND REGULATORY REDUCTION.—Con-
sistent with section 118 of the Federal Crop Insurance
Reform Act of 1994, and consistent with maintenance
of program integrity, prevention of fraud and abuse,
the need for program expansion, and improvement of
quality of service to customers, the Board shall alter
program procedures and administrative requirements
in order to reduce the administrative and operating
costs of approved insurance providers and agents in
an amount that corresponds to any reduction in the
reimbursement rate required under paragraph (4)
during the 5-year period beginning on the date of en-
actment of this paragraph.
‘‘(6) AGENCY
DISCRETION.—The determination
of whether the Corporation is achieving, or has
achieved, corresponding administrative cost savings
shall not be subject to administrative review, and is
wholly committed to agency discretion within the
meaning of section 701(a)(2) of title 5, United States
Code.
‘‘(7) PLAN.—The Corporation shall submit to
Congress a plan outlining the measures that will be
used to achieve the reduction required under para-
graph (5). If the Corporation can identify additional
cost reduction measures, the Corporation shall de-
scribe the measures in the plan.
‘‘(l) OPTIONAL COVERAGES.—The Corporation may
offer specific risk protection programs, including protection
against prevented planting, wildlife depredation, tree dam-
age and disease, and insect infestation, under such terms
and conditions as the Board may determine, except that
no program may be undertaken if insurance for the specific
risk involved is generally available from private companies.
‘‘(m) RESEARCH.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), the Corporation may conduct research, sur-
veys, pilot programs, and investigations relating to
crop insurance and agriculture-related risks and
losses including insurance on losses involving reduced
forage on rangeland caused by drought and by insect
infestation, livestock poisoning and disease, destruc-
tion of bees due to the use of pesticides, and other
unique special risks related to fruits, nuts, vegetables,
aquacultural species, forest industry needs (including
appreciation), and other agricultural products as de-
termined by the Board.
‘‘(2) EXCEPTION.—No action may be undertaken
with respect to a risk under paragraph (1) if insur-
ance protection against the risk is generally available
from private companies.
‘‘(3) EVALUATION.—After the completion of any
pilot program under this subsection, the Corporation
shall evaluate the pilot program and submit to the
Committee on Agriculture of the House of Representa-
tives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate, a report of the operations
of the pilot program, including the evaluation by the
Corporation of the pilot program and the rec-
ommendations of the Corporation with respect to im-
plementing the program on a national basis.’’.
SEC. 107. CROP INSURANCE YIELD COVERAGE.
Section 508A (7 U.S.C. 1508a) is repealed.
SEC. 108. PREEMPTION.
Section 511 (7 U.S.C. 1511) is amended by adding
at the end the following sentence: ‘‘A contract of insurance
of the Corporation, and a contract of insurance reinsured
by the Corporation, shall be exempt from taxation imposed
by any State, municipality, or local taxing authority.’’.
SEC. 109. ADVISORY COMMITTEE.
The Act is amended by inserting after section 514 (7
U.S.C. 1514) the following new section:
‘‘SEC. 515. ADVISORY COMMITTEE FOR FEDERAL CROP IN-
SURANCE.
‘‘(a) ESTABLISHMENT.—The Secretary may establish
within the Department an advisory committee to be known
as the ‘Advisory Committee for Federal Crop Insurance’.
‘‘(b) PRIMARY RESPONSIBILITY.—The primary re-
sponsibility of the Advisory Committee shall be to advise
the Secretary on the implementation of this title and on
other issues related to crop insurance, as determined by the
Manager of the Corporation.
‘‘(c) MEMBERSHIP.—The Advisory Committee shall be
composed of the Manager of the Corporation, the Secretary
(or a designee of the Secretary), and not fewer than 12
members representing organizations and agencies involved
in the provision of crop insurance under this title. Not fewer
than 3 of the members of the Advisory Committee shall be
representatives of the specialty crops industry. The organi-
zations or agencies represented by members on the Advisory
Committee may include insurance companies, insurance
agents, farm producer organizations, experts on agronomic
practices, and banking and lending institutions.
‘‘(d) ADMINISTRATIVE PROVISIONS.—
‘‘(1) TERMS.—Members of the Advisory Commit-
tee (other than the Manager of the Corporation and
the Secretary) shall be appointed by the Secretary for
a term of up to 2 years from nominations made by
the organizations and agencies specified in subsection
(c). The terms of the members (other than the Man-
ager of the Corporation and the Secretary) shall be
staggered.
‘‘(2) CHAIRPERSON.—The Advisory Committee
shall be chaired by the Manager of the Corporation.
‘‘(3) MEETINGS.—The Advisory Committee shall
meet at least annually. The meetings of the Advisory
Committee shall be publicly announced in advance
and shall be open to the public. Appropriate records
of the activities of the Advisory Committee shall be
kept and made available to the public on request.
‘‘(e) REPORTS.—Not later than June 30 of each year,
the Advisory Committee shall submit to the Secretary a re-
port specifying the conclusions and recommendations of the
Advisory Committee regarding—
‘‘(1) the progress toward implementation of this
title;
‘‘(2) the actuarial soundness of the Federal crop
insurance program;
‘‘(3) the rate of producer participation in both
catastrophic risk protection under section 508(b) and
additional coverage under section 508(c); and
‘‘(4) the progress toward improved crop insur-
ance coverage for new and specialty crops.
‘‘(f) TERMINATION
OF AUTHORITY.—The authority
provided by this section shall terminate on September 30,
1998.’’.
SEC. 110. FUNDING.
Section 516 (7 U.S.C. 1516) is amended to read as
follows:
‘‘SEC. 516. FUNDING.
‘‘(a) AUTHORIZATION OF APPROPRIATIONS.—
‘‘(1) DISCRETIONARY EXPENSES.—There are au-
thorized to be appropriated for each of fiscal years
1995 through 2001 such sums as are necessary to
cover—
‘‘(A) the salaries and expenses of the Cor-
poration; and
‘‘(B) the administrative and operating ex-
penses of the Corporation for the sales commis-
sions of agents.
‘‘(2) MANDATORY EXPENSES.—There are author-
ized to be appropriated such sums as are necessary to
cover—
‘‘(A) in the case of each of the 1995 through
1997 reinsurance years, the administrative and
operating expenses of the Corporation for the
sales commissions of agents, consistent with sub-
section (b)(1);
‘‘(B) premium subsidies, including the ad-
ministrative and operating expenses of an ap-
proved insurance provider for the delivery of
policies with additional coverage; and
‘‘(C) payments for noninsured assistance
losses under section 519.
‘‘(b) PAYMENT OF EXPENSES.—
‘‘(1) ADMINISTRATIVE
AND
OPERATING
EX-
PENSES.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), in the case of each of the 1995
through 1997 reinsurance years, the Corporation
is authorized to pay from the insurance fund es-
tablished under subsection (c), the administrative
and operating expenses of an approved insurance
provider, including expenses covered by sub-
section (a)(1)(B).
‘‘(B) SALES COMMISSIONS FOR 1997 REIN-
SURANCE YEAR.—In the case of the 1997 reinsur-
ance year, the amount of the payments from the
insurance fund established under subsection (c)
for the expenses of the Corporation for the sales
commissions of agents may not exceed 8.5 per-
cent of the total amount of premiums paid for
additional coverage for the 1997 reinsurance
year.
‘‘(2) OTHER EXPENSES.—The Corporation is au-
thorized to pay from the insurance fund established
under subsection (c)—
‘‘(A) all other expenses of the Corporation
(other than expenses covered by subsection
(a)(1)), 
including 
all 
premium 
subsidies,
noninsured assistance benefits, and indemnities;
‘‘(B) subject to paragraph (1)(B), in the
case of each of the 1995 through 1997 reinsur-
ance years, all administrative and expense reim-
bursements due under a reinsurance agreement
with an approved insurance provider; and
‘‘(C) to the extent necessary, expenses in-
curred by the Corporation to carry out research
and development.
‘‘(c) INSURANCE FUND.—
‘‘(1) IN GENERAL.—There is established an in-
surance fund, for the deposit of premium income and
amounts made available under subsection (a)(2), to be
available without fiscal year limitation.
‘‘(2) 
COMMODITY
CREDIT
CORPORATION
FUNDS.—If at any time the amounts in the insurance
fund are insufficient to enable the Corporation to
carry out subsection (b), to the extent the funds of the
Commodity Credit Corporation are available—
‘‘(A) the Corporation may request the Sec-
retary to use the funds of the Commodity Credit
Corporation to carry out subsection (b); and
‘‘(B) the Secretary may use the funds of the
Commodity Credit Corporation to carry out sub-
section (b).’’.
SEC. 111. NONINSURED CROP DISASTER ASSISTANCE.
Section 519 (7 U.S.C. 1519) is amended to read as
follows:
‘‘SEC. 519. NONINSURED CROP DISASTER ASSISTANCE PRO-
GRAM.
‘‘(a) ESTABLISHMENT OF PROGRAM.—
‘‘(1) ESTABLISHMENT.—In the case of an eligible
crop described in paragraph (2), the Corporation
shall establish a noninsured crop disaster assistance
program to provide coverage equivalent to the cata-
strophic risk protection otherwise available under sec-
tion 508(b).
‘‘(2) ELIGIBLE CROPS.—
‘‘(A) IN GENERAL.—As used in this section,
the term ‘eligible crop’ means each commercial
crop or other agricultural commodity (except
livestock)—
‘‘(i) for which catastrophic risk protec-
tion under section 508(b) is not available;
and
‘‘(ii) that is produced for food or fiber.
‘‘(B) CROPS SPECIFICALLY INCLUDED.—The
term ‘eligible crop’ shall include floricultural, or-
namental nursery, and Christmas tree crops,
turfgrass sod, and industrial crops.
‘‘(3) CAUSE OF LOSS.—To qualify for assistance
under this section, the losses of the noninsured com-
modity shall be due to drought, flood, or other natural
disaster, as determined by the Secretary.
‘‘(b) APPLICATION FOR NONINSURED CROP DISASTER
ASSISTANCE.—
‘‘(1) TIMELY APPLICATION.—To be eligible for
assistance under this section, a producer shall submit
an application for noninsured crop disaster assist-
ance at a local office of the Department. The applica-
tion shall be in such form, contain such information,
and be submitted at such time as the Corporation
may require.
‘‘(2) RECORDS.—A producer shall annually pro-
vide records, as required by the Corporation, of pre-
vious crop acreage, acreage yields, and production, or
the producer shall accept a yield under subsection
(e)(3) determined by the Corporation.
‘‘(3) ACREAGE REPORTS.—A producer shall pro-
vide reports on acreage planted or prevented from
being planted, as required by the Corporation, by the
designated acreage reporting date for the crop and lo-
cation as established by the Corporation.
‘‘(c) LOSS REQUIREMENTS.—
‘‘(1) REQUIRED AREA LOSS.—A producer of an
eligible crop shall not receive noninsured crop disaster
assistance unless the average yield for that crop, or an
equivalent measure in the event yield data are not
available, in an area falls below 65 percent of the ex-
pected area yield, as established by the Corporation.
‘‘(2) PREVENTED PLANTING.—Subject to para-
graph (1), the Corporation shall make a prevented
planting noninsured crop disaster assistance payment
if the producer is prevented from planting more than
35 percent of the acreage intended for the eligible crop
because of drought, flood, or other natural disaster, as
determined by the Secretary.
‘‘(3) REDUCED YIELDS.—Subject to paragraph
(1), the Corporation shall make a reduced yield
noninsured crop disaster assistance payment to a
producer if the total quantity of the eligible crop that
the producer is able to harvest on any farm is, be-
cause of drought, flood, or other natural disaster as
determined by the Secretary, less than 50 percent of
the expected individual yield for the crop, as deter-
mined by the Corporation, factored for the interest of
the producer for the crop.
‘‘(d) PAYMENT.—The Corporation shall make available
to a producer eligible for noninsured assistance under this
section a payment computed by multiplying—
‘‘(1) the quantity that is less than 50 percent of
the established yield for the crop; by
‘‘(2)(A) in the case of each of the 1995 through
1998 crop years, 60 percent of the average market
price for the crop (or any comparable coverage deter-
mined by the Corporation); or
‘‘(B) in the case of each of the 1999 and subse-
quent crop years, 55 percent of the average market
price for the crop (or any comparable coverage deter-
mined by the Corporation); by
‘‘(3) a payment rate for the type of crop (as de-
termined by the Corporation) that—
‘‘(A) in the case of a crop that is produced
with a significant and variable harvesting ex-
pense, reflects the decreasing cost incurred in the
production cycle for the crop that is—
‘‘(i) harvested;
‘‘(ii) planted but not harvested; and
‘‘(iii) prevented from being planted be-
cause of drought, flood, or other natural dis-
aster (as determined by the Secretary); and
‘‘(B) in the case of a crop that is not pro-
duced with a significant and variable harvesting
expense, is determined by the Corporation.
‘‘(e) YIELD DETERMINATIONS.—
‘‘(1) ESTABLISHMENT.—The Corporation shall
establish farm yields for purposes of providing
noninsured crop disaster assistance under this sec-
tion.
‘‘(2) ACTUAL PRODUCTION HISTORY.—The Cor-
poration shall determine yield coverage using the ac-
tual production history of the producer over a period
of not less than the 4 previous consecutive crop years
and not more than 10 consecutive crop years. Subject
to paragraph (3), the yield for the year in which
noninsured crop disaster assistance is sought shall be
equal to the average of the actual production history
of the producer during the period considered.
‘‘(3) ASSIGNMENT OF YIELD.—If a producer does
not submit adequate documentation of production his-
tory to determine a crop yield under paragraph (2),
the Corporation shall assign to the producer a yield
equal to not less than 65 percent of the transitional
yield of the producer (adjusted to reflect actual pro-
duction reflected in the records acceptable to the Cor-
poration for continuous years), as specified in regula-
tions issued by the Corporation based on production
history requirements.
‘‘(4) PROHIBITION ON ASSIGNED YIELDS IN CER-
TAIN COUNTIES.—
‘‘(A) IN GENERAL.—
‘‘(i) DOCUMENTATION.—If sufficient
data are available to demonstrate that the
acreage of a crop in a county for the crop
year has increased by more than 100 per-
cent over any year in the preceding 7 crop
years or, if data are not available, if the
acreage of the crop in the county has in-
creased significantly from the previous crop
years, a producer must provide such de-
tailed documentation of production costs,
acres planted, and yield for the crop year
for which benefits are being claimed as is
required by the Corporation. If the Corpora-
tion determines that the documentation pro-
vided is not sufficient, the Corporation may
require documenting proof that the crop,
had the crop been harvested, could have been
marketed at a reasonable price.
‘‘(ii) PROHIBITION.—Except as pro-
vided in subparagraph (B), a producer who
produces a crop on a farm located in a
county described in clause (i) may not ob-
tain an assigned yield.
‘‘(B) EXCEPTION.—A crop or a producer
shall not be subject to this subsection if—
‘‘(i) the planted acreage of the producer
for the crop has been inspected by a third
party acceptable to the Secretary; or
‘‘(ii)(I) the County Executive Director
and the State Executive Director rec-
ommend an exemption from the requirement
to the Deputy Administrator for State and
County Operations of the Agricultural Sta-
bilization and Conservation Service; and
‘‘(II) the Deputy Administrator ap-
proves the recommendation.
‘‘(5) LIMITATION ON RECEIPT OF SUBSEQUENT
ASSIGNED YIELD.—A producer who receives an as-
signed yield for the current year of a natural disaster
because required production records were not submit-
ted to the local office of the Department shall not be
eligible for an assigned yield for the year of the next
natural disaster unless the required production
records of the previous 1 or more years (as applica-
ble) are provided to the local office.
‘‘(6) YIELD
VARIATIONS
DUE
TO
DIFFERENT
FARMING PRACTICES.—The Corporation shall ensure
that noninsured crop disaster assistance accurately
reflects significant yield variations due to different
farming practices, such as between irrigated and
nonirrigated acreage.
‘‘(f) CONTRACT PAYMENTS.—A producer who has re-
ceived a guaranteed payment for production, as opposed to
delivery, of a crop pursuant to a contract shall have the
production of the producer adjusted upward by the amount
of the production equal to the amount of the contract pay-
ment received.
‘‘(g) PAYMENT OF LOSSES.—Payments for noninsured
crop disaster assistance losses under this section shall be
made from the insurance fund established under section
516. The losses shall not be included in calculating the pre-
miums charged to producers for insurance under section
508.
‘‘(h) EXCLUSIONS.—Noninsured crop disaster assist-
ance under this section shall not cover losses due to—
‘‘(1) the neglect or malfeasance of the producer;
‘‘(2) the failure of the producer to reseed to the
same crop in those areas and under such cir-
cumstances where it is customary to reseed; or
‘‘(3) the failure of the producer to follow good
farming practices, as determined by the Corpora-
tion.’’.
SEC. 112. PAYMENT AND INCOME LIMITATIONS.
Section 519 (7 U.S.C. 1519) (as amended by section
111) is further amended by adding at the end the following
new subsection:
‘‘(h) PAYMENT AND INCOME LIMITATIONS.—
‘‘(1) DEFINITIONS.—As used in this subsection:
‘‘(A) PERSON.—The term ‘person’ has the
meaning provided the term in regulations issued
by the Secretary. The regulations shall conform,
to the extent practicable, to the regulations defin-
ing the term ‘person’ issued under section 1001
of the Food Security Act of 1985 (7 U.S.C.
1308).
‘‘(B) QUALIFYING GROSS REVENUES.—The
term ‘qualifying gross revenues’ means—
‘‘(i) if a majority of the gross revenue
of the person is received from farming,
ranching, and forestry operations, the gross
revenue from the farming, ranching, and
forestry operations of the person; and
‘‘(ii) if less than a majority of the
gross revenue of the person is received from
farming, ranching, and forestry operations,
the gross revenue of the person from all
sources.
‘‘(2) PAYMENT LIMITATION.—The total amount
of payments that a person shall be entitled to receive
annually under this title may not exceed $100,000.
‘‘(3) LIMITATION ON MULTIPLE BENEFITS FOR
SAME LOSS.—If a producer who is eligible to receive
benefits under catastrophic risk protection under sec-
tion 508(b) or noninsured crop disaster assistance
under this section is also eligible to receive assistance
for the same loss under any other program adminis-
tered by the Secretary, the producer shall be required
to elect whether to receive benefits under this title or
under the other program, but not both. A producer
who purchases additional coverage under section
508(c) may also receive assistance for the same loss
under other programs administered by the Secretary,
except that the amount received for the loss under the
additional coverage together with the amount received
under the other programs may not exceed the amount
of the actual loss of the producer.
‘‘(4) INCOME
LIMITATION.—A person who has
qualifying gross revenues in excess of the amount
specified in section 2266(a) of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 1421
note) (as in effect on November 28, 1990) during the
taxable year (as determined by the Secretary) shall
not be eligible to receive any noninsured assistance
payment under this section.
‘‘(5) REGULATIONS.—The Secretary shall issue
regulations prescribing such rules as the Secretary de-
termines necessary to ensure a fair and equitable ap-
plication of section 1001 of the Food Security Act of
1985 (7 U.S.C. 1308), the general payment limitation
regulations of the Secretary, and the limitations es-
tablished under this subsection.’’.
SEC. 113. PRODUCER ELIGIBILITY.
Section 520 (7 U.S.C. 1520) is amended to read as
follows:
‘‘SEC. 520. PRODUCER ELIGIBILITY.
‘‘Except as otherwise provided in this title, a producer
shall not be denied insurance under this title if—
‘‘(1) for purposes of catastrophic risk protection
coverage, the producer is a ‘person’ (as defined by the
Secretary); and
‘‘(2) for purposes of any other plan of insurance,
the producer is 18 years of age and has a bona fide
insurable interest in a crop as an owner-operator,
landlord, tenant, or sharecropper.’’.
SEC. 114. INELIGIBILITY FOR CATASTROPHIC RISK AND
NONINSURED ASSISTANCE PAYMENTS.
The Act (7 U.S.C. 1501 et seq.) is amended by adding
at the end the following new section:
‘‘SEC. 521. INELIGIBILITY FOR CATASTROPHIC RISK AND
NONINSURED ASSISTANCE PAYMENTS.
‘‘If the Secretary determines that a person has know-
ingly adopted a material scheme or device to obtain cata-
strophic risk, additional coverage, or noninsured assistance
benefits under this title to which the person is not entitled,
has evaded this title, or has acted with the purposes of evad-
ing this title, the person shall be ineligible to receive all
benefits applicable to the crop year for which the scheme
or device was adopted. The authority provided by this sec-
tion shall be in addition to, and shall not supplant, the
authority provided by section 506(n).’’.
SEC. 115. ELIMINATION OF GENDER REFERENCES.
(a) MANAGEMENT OF CORPORATION.—Section 505 (7
U.S.C. 1505) is amended—
(1) in subsection (a), by striking the third sen-
tence and inserting ‘‘The Board shall be appointed
by, and hold office at the pleasure of, the Secretary.
The Secretary shall not be a member of the Board.’’;
and
(2) in subsection (d)—
(A) by striking ‘‘upon him’’; and
(B) by striking ‘‘He shall be appointed by,’’
and inserting ‘‘The manager shall be appointed
by,’’.
(b) PERSONNEL.—Section 507 (7 U.S.C. 1507) is
amended—
(1) in subsection (a), by striking ‘‘as he may de-
termine: Provided, That’’ and inserting ‘‘as the Sec-
retary may determine appropriate. However,’’; and
(2) in subsection (d), by striking ‘‘as he may re-
quest’’ and inserting ‘‘that the Secretary requests’’.
(c) INDEMNITIES EXEMPT FROM LEVY.—Section 509
(7 U.S.C. 1509) is amended by striking ‘‘or his estate’’ and
inserting ‘‘or the estate of the insured’’.
SEC. 116. PREVENTED PLANTING.
(a) IN GENERAL.—Effective for the 1994 crop year,
a producer described in subsection (b) shall receive com-
pensation under the prevented planting coverage policy pro-
vision described in subsection (b)(1) by—
(1) obtaining from the Secretary of Agriculture
the applicable amount that is payable under the con-
serving use program described in subsection (b)(4);
and
(2) obtaining from the Federal Crop Insurance
Corporation the amount that is equal to the difference
between—
(A) the amount that is payable under the
conserving use program; and
(B) the amount that is payable under the
prevented planting coverage policy.
(b) ELIGIBLE
PRODUCERS.—Subsection (a) shall
apply to a producer who—
(1) purchased a prevented planting policy for the
1994 crop year from the Federal Crop Insurance Cor-
poration prior to the spring sales closing date for the
1994 crop year;
(2) is unable to plant a crop due to major, wide-
spread flooding in the Midwest, or excessive ground
moisture, that occurred prior to the spring sales clos-
ing date for the 1994 crop year;
(3) had a reasonable expectation of planting a
crop on the prevented planting acreage for the 1994
crop year; and
(4) participates in a conserving use program es-
tablished for the 1994 crop of wheat, feed grains, up-
land cotton, or rice established under section
107B(c)(1)(E), 
105B(c)(1)(E), 
103B(c)(1)(D), 
or
101B(c)(1)(D), respectively, of the Agricultural Act of
1949 (7 U.S.C. 1445b–3a(c)(1)(E), 1444f(c)(1)(E),
1444–2(c)(1)(D), or 1441–2(c)(1)(D)).
(c) OILSEED PREVENTED PLANTING PAYMENTS.—
(1) IN GENERAL.—Effective for the 1994 crop
year, a producer of a crop of oilseeds (as defined in
section 205(a) of the Agricultural Act of 1949 (7
U.S.C. 1446f(a))) shall receive a prevented planting
payment for the crop if the requirements of para-
graphs (1), (2), and (3) of subsection (b) are satisfied.
(2) SOURCE OF PAYMENT.—The total amount of
payments required under this subsection shall be
made by the Federal Crop Insurance Corporation.
(d) PAYMENT.—A payment under this section may not
be made before October 1, 1994.
SEC. 117. REPORT ON IMPROVING DISSEMINATION OF CROP
INSURANCE INFORMATION.
Not later than 180 days after the date of enactment
of this Act and at the end of each of the 2 1-year periods
thereafter, the Federal Crop Insurance Corporation shall
submit a report to Congress containing a plan to implement
a sound program for producer education regarding the crop
insurance program and for the dissemination of crop insur-
ance information to producers, as required by section
508(a)(5) of the Federal Crop Insurance Act (as amended
by section 106).
SEC. 118. CROP INSURANCE PROVIDER EVALUATION.
(a) IN GENERAL.—The Comptroller General of the
United States and the Federal Crop Insurance Corporation
(referred to in this section as the ‘‘Corporation’’) shall
jointly evaluate the financial arrangement between the Cor-
poration and approved insurance providers to determine
the quality, costs, and efficiencies of providing the benefits
of multiple peril crop insurance to producers of agricultural
commodities covered under the Federal Crop Insurance Act
(7 U.S.C. 1501 et seq.).
(b) COLLECTION OF INFORMATION AND PROPOSALS.—
The Corporation shall require private insurance providers
and agents to supply, and the private insurance providers
and agents shall supply, records and information necessary
to make the determinations and evaluations required under
this section. The Corporation shall solicit from the approved
insurance providers and agents proposals for modifying or
altering the requirements, regulations, procedures, and
processes related to implementing the Federal Crop Insur-
ance Act to reduce the operating and administrative costs
of the providers and agents.
(c) INITIAL REPORT.—Not later than 180 days after
receipt of information and cost-reduction proposals under
subsection (b), the Corporation shall evaluate the informa-
tion and proposals obtained and report the results of the
evaluation to the Committee on Agriculture of the House
of Representatives and the Committee on Agriculture, Nu-
trition, and Forestry of the Senate.
(d) FINAL REPORT.—Not later than 2 years after the
date of enactment of this Act, the Comptroller General and
the Corporation shall submit a final report that provides
the evaluation required under subsection (a) to the Commit-
tee on Agriculture of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry of the
Senate. In making the evaluation, the Comptroller General
and the Corporation shall—
(1) consider the changes made by the Corpora-
tion in response to increased program participation
resulting from the enactment of this Act;
(2) include an evaluation and opinion of the ac-
curacy and reasonableness of—
(A) the average actual costs for approved
insurance providers to deliver multiple peril
crop insurance;
(B) the cost per policy of complying with
the requirements, regulations, procedures, and
processes of the Federal Crop Insurance Act;
(C) the cost differences for various provider
firm sizes and any business delivered by the Fed-
eral Government;
(D) the adequacy of the standard reimburse-
ment for potential new providers; and
(E) the identification of any new costs re-
lated to the enactment of this Act not previously
identified in the information reported by the
providers;
(3) compare delivery costs of multiple peril crop
insurance to other insurance coverages that the pro-
vider may sell and determine the extent, if any, to
which any funds provided to carry out the Federal
Crop Insurance Act are being used to fund any other
business enterprise operated by the provider;
(4)(A) assess alternative methods for reimbursing
providers for reasonable and necessary expenses asso-
ciated with delivery of multiple peril crop insurance;
(B) recommend changes under this paragraph
that reasonably demonstrate the need to achieve the
greatest operating efficiencies on the part of the pro-
vider and the Corporation has been recognized; and
(C) identify areas for improved operating effi-
ciencies, if any, in the requirements made by the Cor-
poration for compliance and program integrity;
(5) assess the potential for alternative forms of
reinsurance arrangements for providers of different
firm sizes, taking into consideration—
(A) the need to achieve a reasonable return
on the capital of the provider compared to other
lines of insurance;
(B) the relative risk borne by the provider
for the different lines of insurance;
(C) the availability and price of commercial
reinsurance; and
(D) any additional costs that may be in-
curred by the Federal Government in carrying
out the Federal Crop Insurance Act; and
(6) include an analysis of the effect of the cur-
rent or proposed reinsurance arrangements on provid-
ers having different business levels.
(e) INFORMATION.—
(1) PRIVACY.—In conducting the evaluation re-
quired by this section, the Comptroller General and
the Corporation shall maintain the privacy of propri-
etary information.
(2) SUBPOENAS.—The Comptroller General shall
have the power to subpoena information relevant to
the evaluation required by this section from any pri-
vate insurance provider. The Comptroller General
shall allow the Corporation access to the information
subpoenaed taking into consideration the necessity of
preserving the privacy of proprietary information.
SEC. 119. CONFORMING AMENDMENTS.
(a) PRICE SUPPORT PROGRAMS.—
(1) IN GENERAL.—Title IV of the Agricultural
Act of 1949 (7 U.S.C. 1421 et seq.) is amended by
adding at the end the following new section:
‘‘SEC. 427. CROP INSURANCE REQUIREMENT.
‘‘As a condition of receiving any benefit (including
payments) under title I or II for each of the 1995 and subse-
quent crops of tobacco, rice, extra long staple cotton, upland
cotton, feed grains, wheat, peanuts, oilseeds, and sugar, a
producer must obtain at least catastrophic risk protection
insurance coverage under section 508 of the Federal Crop
Insurance Act (7 U.S.C. 1508) for the crop and crop year
for which the benefit is sought, if the coverage is offered by
the Corporation.’’.
(2) RICE.—Section 101B(c) of such Act (7
U.S.C. 1441–2(c)) is amended—
(A) in paragraph (1), by striking subpara-
graph (F); and
(B) by striking paragraph (2) and inserting
the following new paragraph:
‘‘(2) CROP INSURANCE REQUIREMENT.—A pro-
ducer shall obtain catastrophic risk protection insur-
ance coverage in accordance with section 427.’’.
(3) UPLAND COTTON.—Section 103B(c) of such
Act (7 U.S.C. 1444–2(c)) is amended—
(A) in paragraph (1), by striking subpara-
graph (F); and
(B) by striking paragraph (2) and inserting
the following new paragraph:
‘‘(2) CROP INSURANCE REQUIREMENT.—A pro-
ducer shall obtain catastrophic risk protection insur-
ance coverage in accordance with section 427.’’.
(4) FEED GRAINS.—Section 105B(c) of such Act
(7 U.S.C. 1444f(c)) is amended—
(A) in paragraph (1), by striking subpara-
graph (G); and
(B) by striking paragraph (2) and inserting
the following new paragraph:
‘‘(2) CROP INSURANCE REQUIREMENT.—A pro-
ducer shall obtain catastrophic risk protection insur-
ance coverage in accordance with section 427.’’.
(5) WHEAT.—Section 107B(c) of such Act (7
U.S.C. 1445b–3a(c)) is amended—
(A) in paragraph (1), by striking subpara-
graph (G); and
(B) by striking paragraph (2) and inserting
the following new paragraph:
‘‘(2) CROP INSURANCE REQUIREMENT.—A pro-
ducer shall obtain catastrophic risk protection insur-
ance coverage in accordance with section 427.’’.
(6) DISASTER PAYMENTS.—Section 208 of such
Act (7 U.S.C. 1446i) is repealed.
(b) FARMERS HOME ADMINISTRATION PROGRAMS.—
The Consolidated Farm and Rural Development Act (7
U.S.C. 1921 et seq.) is amended by adding at the end the
following new section:
‘‘SEC. 371. CROP INSURANCE REQUIREMENT.
‘‘(a) IN GENERAL.—As a condition of obtaining any
benefit (including a direct loan, loan guarantee, or pay-
ment) described in subsection (b), a borrower must obtain
at least catastrophic risk protection insurance coverage
under section 508 of the Federal Crop Insurance Act (7
U.S.C. 1508) for the crop and crop year for which the bene-
fit is sought, if the coverage is offered by the Corporation.
‘‘(b) APPLICABLE BENEFITS.—Subsection (a) shall
apply to—
‘‘(1) a farm ownership loan (FO) under section
303;
‘‘(2) an operating loan (OL) under section 312;
and
‘‘(3) an emergency loan (EM) under section
321.’’.
(c) DISASTER ASSISTANCE.—Subtitle B of title XXII
of the Food, Agriculture, Conservation, and Trade Act of
1990 (7 U.S.C. 1421 note) is amended by striking chapter
3.
(d) EMERGENCY APPROPRIATIONS.—
(1) IN
GENERAL.—Effective January 1, 1995,
section 251(b)(2)(D)(i) of the Balanced Budget and
Emergency Deficit Control Act of 1985 (2 U.S.C.
901(b)(2)(D)(i)) is amended by adding at the end the
following new sentence: ‘‘This subparagraph shall not
apply to appropriations to cover agricultural crop
disaster assistance.’’.
(2) EMERGENCY LEGISLATION.—Effective Janu-
ary 1, 1995, section 252(e) of such Act (2 U.S.C.
902(e)) is amended by adding at the end the following
new sentence: ‘‘This subsection shall not apply to di-
rect spending provisions to cover agricultural crop
disaster assistance.’’.
(e) FALSE STATEMENTS.—Section 1014 of title 18,
United States Code, is amended by inserting ‘‘or a company
the Corporation reinsures’’ after ‘‘Federal Crop Insurance
Corporation’’.
(f) TECHNICAL AMENDMENTS.—
(1) The first sentence of section 506(d) (7 U.S.C.
1506(d)) is amended by striking ‘‘508(f)’’ and insert-
ing ‘‘508(j)’’.
(2) The last sentence of section 507(c) (7 U.S.C.
1507(c)) is amended by striking ‘‘508(b)’’ and insert-
ing ‘‘508(h)’’.
(3) Section 518 (7 U.S.C. 1518) is amended by
striking ‘‘(k)’’ and inserting ‘‘(m)’’.
SEC. 120. EFFECTIVE DATE.
Except as otherwise provided in this title, this title and
the amendments made by this title shall become effective
on the date of enactment of this Act and shall apply to the
provision of crop insurance under the Federal Crop Insur-
ance Act (7 U.S.C. 1501 et seq.) beginning with the 1995
crop year. With respect to the 1994 crop year, the Federal
Crop Insurance Act (as in effect on the day before the date
of enactment of this Act) shall continue to apply.
TITLE II—DEPARTMENT OF AG-
RICULTURE 
REORGANIZA-
TION
SEC. 201. SHORT TITLE.
(a) SHORT TITLE.—This title may be cited as the ‘‘De-
partment of Agriculture Reorganization Act of 1994’’.
SEC. 202. PURPOSE.
The purpose of this title is to provide the Secretary
of Agriculture with the necessary authority to streamline
and reorganize the Department of Agriculture to achieve
greater efficiency, effectiveness, and economies in the orga-
nization and management of the programs and activities
carried out by the Department.
SEC. 203. DEFINITIONS.
Except where the context requires otherwise, for pur-
poses of this title:
(1) DEPARTMENT.—The term ‘‘Department’’
means the Department of Agriculture.
(2) NATIONAL
APPEALS
DIVISION.—The term
‘‘National Appeals Division’’ means the National Ap-
peals Division of the Department established under
section 272.
(3) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Agriculture.
(4) FUNCTION.—The term ‘‘function’’ means an
administrative, financial, or regulatory activity of an
agency, office, officer, or employee of the Department.
Subtitle A—General Reorganization
Authorities
SEC. 211. TRANSFER OF DEPARTMENT FUNCTIONS TO SEC-
RETARY OF AGRICULTURE.
(a) TRANSFER OF FUNCTIONS.—Except as provided in
subsection (b), there are transferred to the Secretary of Agri-
culture all functions of all agencies, offices, officers, and em-
ployees of the Department that are not already vested in
the Secretary on the date of the enactment of this Act.
(b) EXCEPTIONS.—Subsection (a) shall not apply to
the following functions:
(1) Functions vested by subchapter II of chapter
5 of title 5, United States Code, in administrative
law judges employed by the Department.
(2) Functions vested by the Inspector General
Act of 1978 (5 U.S.C. App.) in the Inspector General
of the Department.
(3) Functions vested by chapter 9 of title 31,
United States Code, in the Chief Financial Officer of
the Department.
(4) Functions vested in the corporations of the
Department or the boards of directors and officers of
such corporations.
(5) Functions vested in the Alternative Agricul-
tural Research and Commercialization Board by the
Alternative Agricultural Research and Commer-
cialization Act of 1990 (7 U.S.C. 5901 et seq.).
SEC. 212. AUTHORITY OF SECRETARY TO DELEGATE TRANS-
FERRED FUNCTIONS.
(a) DELEGATION OF AUTHORITY.—
(1) 
DELEGATION
AUTHORIZED.—Subject 
to
paragraph (2), the Secretary may delegate to any
agency, office, officer, or employee of the Department
the authority to perform any function transferred to
the Secretary under section 211(a) or any other func-
tion vested in the Secretary as of the date of the en-
actment of this Act. The authority provided in the
preceding sentence includes the authority to establish,
consolidate, alter, or discontinue any agency, office,
or other administrative unit of the Department.
(2) CONDITION ON AUTHORITY.—The delegation
authority provided by paragraph (1) shall be subject
to—
(A) sections 232, 251(d), 273, and 304 and
subsections (a) and (b)(1) of section 261;
(B) sections 502 and 503 of the Agricultural
Trade Act of 1978 (7 U.S.C. 5692 and 5693);
and
(C) section 8(b)(5) of the Soil Conservation
and 
Domestic 
Allotment 
Act 
(16 
U.S.C.
590h(b)(5)).
(b) COST-BENEFIT ANALYSIS REQUIRED FOR NAME
CHANGE.—
(1) ANALYSIS REQUIRED.—Except as provided
in paragraph (2), the Secretary shall conduct a cost-
benefit analysis before changing the name of any
agency, office, division, or other unit of the Depart-
ment to ensure that the benefits to be derived from
changing the name of the agency, office, division, or
other unit outweigh the expense of executing the name
change.
(2) EXCEPTION.—Paragraph (1) shall not apply
with respect to any name change required or author-
ized by this title.
(c) PUBLIC COMMENT ON PROPOSED REORGANIZA-
TION.—To the extent that the implementation of the author-
ity provided to the Secretary by this title to reorganize the
Department involves the creation of new agencies or offices
within the Department or the delegation of major functions
or major groups of functions to any agency or office of the
Department (or the officers or employees of such agency or
office), the Secretary shall, to the extent considered prac-
ticable by the Secretary—
(1) give appropriate advance public notice of the
proposed reorganization action or delegation; and
(2) afford appropriate opportunity for interested
parties to comment on the proposed reorganization
action or delegation.
(d) INTERAGENCY TRANSFER
OF RECORDS, PROP-
ERTY, PERSONNEL, AND FUNDS.—
(1) RELATED
TRANSFERS.—Subject to para-
graph (2), as part of the transfer or delegation of a
function of the Department made or authorized by
this title, the Secretary may transfer within the De-
partment—
(A) any of the records, property, or person-
nel affected by the transfer or delegation of the
function; and
(B) unexpended balances (available or to be
made available for use in connection with the
transferred or delegated function) of appropria-
tions, allocations, or other funds of the Depart-
ment.
(2) APPLICABLE
LAW
RELATING
TO
FUNDS
TRANSFER.—Section 1531 of title 31, United States
Code, shall apply to any transfer of funds under
paragraph (1).
(e) EXHAUSTION OF ADMINISTRATIVE APPEALS.—Not-
withstanding any other provision of law, a person shall ex-
haust all administrative appeal procedures established by
the Secretary or required by law before the person may
bring an action in a court of competent jurisdiction
against—
(1) the Secretary;
(2) the Department; or
(3) an agency, office, officer, or employee of the
Department.
SEC. 213. REDUCTIONS IN NUMBER OF DEPARTMENT PER-
SONNEL.
(a) DEFINITIONS.—For purposes of this section:
(1) HEADQUARTERS OFFICES.—The term ‘‘head-
quarters offices’’, with respect to agencies, offices, or
other administrative units of the Department, means
the offices, functions, and employee positions that are
located or performed—
(A) in Washington, District of Columbia; or
(B) in such other locations as are identified
by the Secretary for purposes of this section.
(2) FIELD STRUCTURE.—The term ‘‘field struc-
ture’’ means the offices, functions, and employee posi-
tions of all agencies, offices, or other administrative
units of the Department, other than the headquarters
offices, except that the term does not include State,
county, or area committees established under section
8(b)(5) of the Soil Conservation and Domestic Allot-
ment Act (16 U.S.C. 590h(b)(5)). The term includes
the physical and geographic locations of such agen-
cies, offices, or other administrative units.
(b) NUMBER OF REDUCTIONS REQUIRED.—The Sec-
retary shall achieve Federal employee reductions of at least
7,500 staff years within the Department by the end of fiscal
year 1999. Reductions in the number of full-time equivalent
positions within the Department achieved under section 5
of the Federal Workforce Restructuring Act of 1994 (Public
Law 103–226; 108 Stat. 115; 5 U.S.C. 3101 note) shall be
counted toward the employee reductions required under this
section.
(c) EMPHASIS ON HEADQUARTERS OFFICES REDUC-
TIONS.—In achieving the employee reductions required by
subsection (b), the Secretary shall pursue a goal so that the
percentage of the total number of employee staff years re-
duced in headquarters offices is at least twice the percentage
of the total number of employee staff years reduced in the
field structure.
(d) SCHEDULE.—The personnel reductions in head-
quarters offices and in the field structure should be accom-
plished concurrently in a manner determined by the Sec-
retary.
SEC. 214. CONSOLIDATION OF HEADQUARTERS OFFICES.
Subject to the availability of appropriated funds for
this purpose, the Secretary shall develop and carry out a
plan to consolidate offices located in Washington, District
of Columbia, of agencies, offices, and other administrative
units of the Department.
SEC. 215. COMBINATION OF FIELD OFFICES.
(a) COMBINATION
OF OFFICES REQUIRED.—Where
practicable and to the extent consistent with efficient, effec-
tive, and improved service, the Secretary shall combine field
offices of agencies within the Department to reduce person-
nel and duplicative overhead expenses.
(b) JOINT USE OF RESOURCES AND OFFICES RE-
QUIRED.—When two or more agencies of the Department
share a common field office, the Secretary shall require the
agencies to jointly use office space, equipment, office sup-
plies, administrative personnel, and clerical personnel asso-
ciated with that field office.
SEC. 216. IMPROVEMENT OF INFORMATION SHARING.
Whenever the Secretary procures or uses computer sys-
tems, as may be provided for in advance in appropriations
Acts, the Secretary shall do so in a manner that enhances
efficiency, productivity, and client services and is consistent
with the goal of promoting computer information sharing
among agencies of the Department.
SEC. 217. REPORTS BY THE SECRETARY.
(a) IN GENERAL.—Subject to subsection (b), notwith-
standing any other provision of law, the Secretary may,
but shall not be required to, prepare and submit any report
solely to the Committee on Agriculture of the House of Rep-
resentatives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate.
(b) LIMITATION.—For each fiscal year, the Secretary
may not prepare and submit more than 30 reports referred
to in subsection (a).
(c) SELECTION OF REPORTS.—In consultation with
the Committee on Agriculture of the House of Representa-
tives and the Committee on Agriculture, Nutrition, and
Forestry of the Senate, the Secretary shall determine which
reports, if any, the Secretary will prepare and submit in
accordance with subsection (b).
SEC. 218. ASSISTANT SECRETARIES OF AGRICULTURE.
(a) AUTHORIZATION.—The Secretary is authorized to
establish in the Department the positions of—
(1) Assistant Secretary of Agriculture for Con-
gressional Relations;
(2) Assistant Secretary of Agriculture for Ad-
ministration; and
(3) Assistant Secretary of Agriculture for Mar-
keting and Regulatory Programs.
(b) CONFIRMATION REQUIRED.—If the Secretary es-
tablishes any position of Assistant Secretary authorized
under subsection (a), the Assistant Secretary shall be ap-
pointed by the President, by and with the advice and con-
sent of the Senate.
(c) SUCCESSION.—Any official who is serving as As-
sistant Secretary of Agriculture for Administration or As-
sistant Secretary of Agriculture for Congressional Relations
on the date of the enactment of this Act and who was ap-
pointed as such Assistant Secretary by the President, by
and with the advice and consent of the Senate, shall not
be required to be reappointed under subsection (b) to the
successor position authorized under subsection (a) if the
Secretary establishes the position, and the official occupies
the new position, within 180 days after the date of the en-
actment of this Act (or such later date set by the Secretary
if litigation delays rapid succession).
(d) EXECUTIVE SCHEDULE.—Section 5315 of title 5,
United States Code, is amended by striking ‘‘Assistant Sec-
retaries of Agriculture (7).’’ and inserting ‘‘Assistant Sec-
retaries of Agriculture (3).’’.
(e) REPEAL OF SUPERSEDED PROVISIONS REGARDING
ASSISTANT SECRETARIES.—The following provisions of law
are repealed:
(1) Section 2 of Reorganization Plan No. 2 of
1953 (5 U.S.C. App; 7 U.S.C. 2201 note).
(2) Section 2 of the Act entitled ‘‘An Act to en-
large the powers and duties of the Department of Ag-
riculture and to create an Executive Department to
be known as the Department of Agriculture.’’, ap-
proved February 9, 1889 (7 U.S.C. 2212).
(3) The first paragraph designated ‘‘OFFICE OF
THE SECRETARY:’’ under the heading ‘‘DEPART-
MENT OF AGRICULTURE’’ of the Act entitled ‘‘An
Act making appropriations for the Department of Ag-
riculture for the fiscal year ending June thirtieth,
nineteen hundred and seven.’’, approved June 30,
1906 (34 Stat. 670; 7 U.S.C. 2212).
(4) Section 604(a) of the Rural Development Act
of 1972 (7 U.S.C. 2212a).
(5) Section 2 of Public Law 94–561 (7 U.S.C.
2212b).
(6) Section 8(a) of Public Law 97–325 (7 U.S.C.
2212c).
(7) Section 1413(d) of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977
(7 U.S.C. 3128(d)).
SEC. 219. PAY INCREASES PROHIBITED.
The compensation of any officer or employee of the De-
partment on the date of the enactment of this Act shall not
be increased as a result of the enactment of this title.
Subtitle B—Farm and Foreign
Agricultural Services
SEC. 225. UNDER SECRETARY OF AGRICULTURE FOR FARM
AND FOREIGN AGRICULTURAL SERVICES.
(a) AUTHORIZATION.—The Secretary is authorized to
establish in the Department the position of Under Secretary
of Agriculture for Farm and Foreign Agricultural Services.
(b) CONFIRMATION REQUIRED.—If the Secretary es-
tablishes the position of Under Secretary of Agriculture for
Farm and Foreign Agricultural Services authorized under
subsection (a), the Under Secretary shall be appointed by
the President, by and with the advice and consent of the
Senate.
(c) FUNCTIONS OF UNDER SECRETARY.—
(1) PRINCIPAL
FUNCTIONS.—Upon establish-
ment, the Secretary shall delegate to the Under Sec-
retary of Agriculture for Farm and Foreign Agricul-
tural Services those functions under the jurisdiction
of the Department that are related to farm and for-
eign agricultural services.
(2) ADDITIONAL
FUNCTIONS.—The Under Sec-
retary of Agriculture for Farm and Foreign Agricul-
tural Services shall perform such other functions as
may be required by law or prescribed by the Sec-
retary.
(d) SUCCESSION.—Any official who is serving as
Under Secretary of Agriculture for International Affairs
and Commodity Programs on the date of the enactment of
this Act and who was appointed by the President, by and
with the advice and consent of the Senate, shall not be re-
quired to be reappointed under subsection (b) to the succes-
sor position authorized under subsection (a) if the Secretary
establishes the position, and the official occupies the new
position, within 180 days after the date of the enactment
of this Act (or such later date set by the Secretary if litiga-
tion delays rapid succession).
(e) CONFORMING AMENDMENTS.—
(1) EXISTING POSITION.—Section 501 of the Ag-
ricultural Trade Act of 1978 (7 U.S.C. 5691), relat-
ing to the Under Secretary of Agriculture for Inter-
national Affairs and Commodity Programs, is re-
pealed.
(2) EXECUTIVE
SCHEDULE.—Section 5314 of
title 5, United States Code, is amended by striking
‘‘Under Secretary of Agriculture for International Af-
fairs and Commodity Programs.’’ and inserting
‘‘Under Secretary of Agriculture for Farm and For-
eign Agricultural Services.’’.
SEC. 226. CONSOLIDATED FARM SERVICE AGENCY.
(a) ESTABLISHMENT.—The Secretary is authorized to
establish and maintain in the Department a Consolidated
Farm Service Agency.
(b) FUNCTIONS
OF CONSOLIDATED FARM SERVICE
AGENCY.—If the Secretary establishes the Consolidated
Farm Service Agency under subsection (a), the Secretary
is authorized to assign to the Agency jurisdiction over the
following functions:
(1) Agricultural price and income support pro-
grams, production adjustment programs, and related
programs.
(2) General supervision of the Federal Crop In-
surance Corporation.
(3) Agricultural credit programs assigned before
the date of the enactment of this Act by law to the
Farmers Home Administration (including farm own-
ership and operating, emergency, and disaster loan
programs) and other lending programs for agricul-
tural producers and others engaged in the production
of agricultural commodities.
(4) Subchapter B of chapter 1 of subtitle D of
title XII of the Food Security Act of 1985 (16 U.S.C.
3831–3836) and the agricultural conservation pro-
gram under the Soil Conservation and Domestic Al-
lotment Act (16 U.S.C. 590g et seq.).
(5) Such other functions as the Secretary consid-
ers appropriate, except for those programs assigned
by the Secretary to the Natural Resources Conserva-
tion Service or another agency of the Department
under section 246(b).
(c) SPECIAL CONCURRENCE REQUIREMENTS FOR CER-
TAIN FUNCTIONS.—In carrying out the programs specified
in subsection (b)(4), the Secretary shall—
(1) acting on the recommendations of the Con-
solidated Farm Service Agency, with the concurrence
of the Natural Resources Conservation Service, issue
regulations to carry out such programs;
(2) ensure that the Consolidated Farm Service
Agency, in establishing policies, priorities, and guide-
lines for such programs, does so with the concurrence
of the Natural Resources Conservation Service at na-
tional, State, and local levels;
(3) ensure that, in reaching such concurrence at
the local level, the Natural Resources Conservation
Service works in cooperation with Soil and Water
Conservation Districts or similar organizations estab-
lished under State law;
(4) ensure that officials of county and area com-
mittees established under section 8(b)(5) of the Soil
Conservation and Domestic Allotment Act (16 U.S.C.
590h(b)(5)) meet annually with officials of such Dis-
tricts or similar organizations to consider local con-
servation priorities and guidelines; and
(5) take steps to ensure that the concurrence
process does not interfere with the effective delivery of
such programs.
(d) JURISDICTION OVER CONSERVATION PROGRAM
APPEALS.—
(1) IN GENERAL.—Until such time as an adverse
decision described in this paragraph is referred to the
National Appeals Division for consideration, the Con-
solidated Farm Service Agency shall have initial ju-
risdiction over any administrative appeal resulting
from an adverse decision made under title XII of the
Food Security Act of 1985 (16 U.S.C. 3801 et seq.),
including an adverse decision involving technical de-
terminations made by the Natural Resources Con-
servation Service.
(2) TREATMENT
OF
TECHNICAL
DETERMINA-
TION.—With respect to administrative appeals involv-
ing a technical determination made by the Natural
Resources Conservation Service, the Consolidated
Farm Service Agency, by rule with the concurrence of
the Natural Resources Conservation Service, shall es-
tablish procedures for obtaining review by the Natural
Resources Conservation Service of the technical deter-
minations involved. Such rules shall ensure that tech-
nical criteria established by the Natural Resources
Conservation Service shall be used by the Consoli-
dated Farm Service Agency as the basis for any deci-
sions regarding technical determinations. If no review
is requested, the technical determination of the Natu-
ral Resources Conservation Service shall be the tech-
nical basis for any decision rendered by a county or
area committee established under section 8(b)(5) of
the Soil Conservation and Domestic Allotment Act
(16 U.S.C. 590h(b)(5)). If the committee requests a re-
view by the Natural Resources Conservation Service
of a wetlands determination of the Service, the Con-
solidated Farm Service Agency shall consult with
other Federal agencies whenever required by law or
under a memorandum of agreement in existence on
the date of the enactment of this Act.
(3) REINSTATEMENT OF PROGRAM BENEFITS.—
Rules issued to carry out this subsection shall provide
for the prompt reinstatement of benefits to a producer
who is determined in an administrative appeal to
meet the requirements of title XII of the Food Secu-
rity Act of 1985 applicable to the producer.
(e) USE OF FEDERAL AND NON-FEDERAL EMPLOY-
EES.—
(1) USE AUTHORIZED.—In the implementation
of programs and activities assigned to the Consoli-
dated Farm Service Agency, the Secretary may use
interchangeably in local offices of the Agency both
Federal employees of the Department and non-Federal
employees of county and area committees established
under section 8(b)(5) of the Soil Conservation and
Domestic Allotment Act (16 U.S.C. 590h(b)(5)).
(2) EXCEPTION.—Notwithstanding paragraph
(1), no personnel action (as defined in section
2302(a)(2)(A) of title 5, United States Code) may be
taken with respect to a Federal employee unless such
action is taken by another Federal employee.
(f) COLLOCATION.—To the maximum extent prac-
ticable, the Secretary shall collocate county offices of the
Consolidated Farm Service Agency with county offices of
the Natural Resources Conservation Service in order to—
(1) maximize savings from shared equipment, of-
fice space, and administrative support;
(2) simplify paperwork and regulatory require-
ments;
(3) provide improved services to agricultural
producers and landowners affected by programs ad-
ministered by the Agency and the Service; and
(4) achieve computer compatibility between the
Agency and the Service to maximize efficiency and
savings.
(g) SAVINGS PROVISION.—For purposes of subsections
(c) through (f) of this section:
(1) A reference to the ‘‘Consolidated Farm Serv-
ice Agency’’ includes any other office, agency, or ad-
ministrative unit of the Department assigned the
functions authorized for the Consolidated Farm Serv-
ice Agency under this section.
(2) A reference to the ‘‘Natural Resources Con-
servation Service’’ includes any other office, agency,
or administrative unit of the Department assigned the
functions authorized for the Natural Resources Con-
servation Service under section 246(b).
100
(h) CONFORMING AMENDMENT.—Section 331(a) of the
Consolidated Farm and Rural Development Act (7 U.S.C.
1981(a)) is amended by striking ‘‘assets to the Farmers
Home Administration’’ and all that follows through the pe-
riod at the end of the subsection and inserting ‘‘assets to
such officers or agencies of the Department of Agriculture
as the Secretary considers appropriate.’’.
SEC. 227. STATE, COUNTY, AND AREA COMMITTEES.
(a) COMMITTEES UNDER THE SOIL CONSERVATION
AND DOMESTIC ALLOTMENT ACT.—Section 8(b) of the Soil
Conservation and Domestic Allotment Act (16 U.S.C.
590h(b)) is amended—
(1) by inserting ‘‘(1)’’ after ‘‘(b)’’;
(2) by designating the second through eighth un-
designated paragraphs as paragraphs (2) through (8),
respectively; and
(3) by striking paragraph (5) (as so designated)
and inserting the following new paragraph:
‘‘(5) STATE, COUNTY, AND AREA COMMITTEES.—
‘‘(A) APPOINTMENT
OF
STATE
COMMITTEES.—
The Secretary shall appoint in each State a State
committee composed of not fewer than 3 nor more
than 5 members who are fairly representative of the
farmers in the State. The members of a State commit-
101
tee shall serve at the pleasure of the Secretary for such
term as the Secretary may establish.
‘‘(B) ESTABLISHMENT
OF
COUNTY, AREA, OR
LOCAL COMMITTEES.—(i) In each county or area in
which activities are carried out under this section, the
Secretary shall establish a county or area committee.
‘‘(ii) Any such committee shall consist of not
fewer than 3 nor more than 5 members who are fairly
representative of the agricultural producers in the
county or area and who shall be elected by the agri-
cultural producers in such county or area under such
procedures as the Secretary may prescribe.
‘‘(iii) The Secretary may designate local admin-
istrative areas within the county or larger area cov-
ered by a committee established under clause (i). Only
agricultural producers within a local administrative
area who participate or cooperate in programs ad-
ministered within their area shall be eligible for nom-
ination and election to the local committee for that
area, under such regulations as the Secretary may
prescribe.
‘‘(iv) The Secretary shall solicit and accept
nominations from organizations representing the in-
terests of socially disadvantaged groups (as defined in
102
section 355(e)(1) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 2003(e)(1)).
‘‘(v) Members of each county, area, or local com-
mittee shall serve for terms not to exceed 3 years.
‘‘(C) TERMINATION OR COMBINATION OF COMMIT-
TEES.—The Secretary may not terminate a county or
area committee or combine or consolidate two or more
county or area committees unless—
‘‘(i) the Secretary first notifies the commit-
tee or committees involved of the proposed action;
and
‘‘(ii) the State committee of the State in
which the affected counties are located approves
of such action in a vote taken after the end of
the 60-day period beginning on the date the noti-
fication is received.
‘‘(D) USE OF COMMITTEES.—The Secretary shall
use the services of such committees in carrying out
programs under this section and the agricultural
credit programs under the Consolidated Farm and
Rural Development Act (7 U.S.C. 1921 et seq.) and
in considering administrative appeals as provided by
section 226(d) of the Department of Agriculture Reor-
ganization Act of 1994. The Secretary may use the
services of such committees in carrying out programs
103
under other authorities administered by the Sec-
retary.
‘‘(E) REGULATIONS.—The Secretary shall issue
such regulations as the Secretary considers necessary
relating to the selection and exercise of the functions
of the respective committees, and to the administra-
tion through such committees of the programs de-
scribed in subparagraph (D). Pursuant to such regu-
lations, each county and area committee shall select
an executive director for the area or county. Such se-
lection shall be made in the same manner as provided
for the selection of the county executive director under
section 7.21(b)(2) of title 7, Code of Federal Regula-
tions, as in effect on January 1, 1994. Regulations
governing payments or grants under this subsection
shall be as simple and direct as possible, and, when-
ever practicable, they shall be classified on the follow-
ing two bases:
‘‘(i) Soil-depleting practices.
‘‘(ii) Soil-building practices.
‘‘(F) MANDATORY DUTIES OF SECRETARY.—In
carrying out this section, the Secretary shall—
‘‘(i) insofar as practicable, protect the inter-
ests of tenants and sharecroppers;
104
‘‘(ii) accord such encouragement to pro-
ducer-owned and producer-controlled cooperative
associations as will be in harmony with the pol-
icy toward cooperative associations set forth in
Federal laws and as will tend to promote effi-
cient methods of marketing and distribution;
‘‘(iii) in every practicable manner, protect
the interests of small producers; and
‘‘(iv) in every practical way, encourage and
provide for soil-conserving and soil-rebuilding
practices.
‘‘(G) DISCRETIONARY
AUTHORITIES
OF
SEC-
RETARY.—In carrying out this section, the Secretary
may use other approved agencies.
‘‘(H) LIMITATIONS.—In carrying out this sec-
tion, the Secretary shall not have the authority to ac-
quire any land or any right or interest in land.’’.
(b) ELIMINATION OF FMHA COUNTY COMMITTEES.—
The Consolidated Farm and Rural Development Act (7
U.S.C. 1921 et seq.) is amended—
(1) by striking section 332 (7 U.S.C. 1982); and
(2) in section 333 (7 U.S.C. 1983)—
(A) by striking paragraph (2); and
(B) redesignating paragraphs (3), (4), and
(5) as paragraphs (2), (3), and (4), respectively.
105
Subtitle C—Rural Economic and
Community Development
SEC. 231. UNDER SECRETARY OF AGRICULTURE FOR RURAL
ECONOMIC AND COMMUNITY DEVELOPMENT.
(a) AUTHORIZATION.—The Secretary is authorized to
establish in the Department the position of Under Secretary
of Agriculture for Rural Economic and Community Devel-
opment.
(b) CONFIRMATION REQUIRED.—If the Secretary es-
tablishes the position of Under Secretary of Agriculture for
Rural Economic and Community Development authorized
under subsection (a), the Under Secretary shall be ap-
pointed by the President, by and with the advice and con-
sent of the Senate.
(c) FUNCTIONS OF UNDER SECRETARY.—
(1) PRINCIPAL
FUNCTIONS.—Upon establish-
ment, the Secretary shall delegate to the Under Sec-
retary of Agriculture for Rural Economic and Com-
munity Development those functions under the juris-
diction of the Department that are related to rural
economic and community development.
(2) ADDITIONAL
FUNCTIONS.—The Under Sec-
retary of Agriculture for Rural Economic and Com-
munity Development shall perform such other func-
106
tions as may be required by law or prescribed by the
Secretary.
(d) SUCCESSION.—Any official who is serving as
Under Secretary of Agriculture for Small Community and
Rural Development on the date of the enactment of this Act
and who was appointed by the President, by and with the
advice and consent of the Senate, shall not be required to
be reappointed under subsection (b) to the successor position
authorized under subsection (a) if the Secretary establishes
the position, and the official occupies the new position,
within 180 days after the date of the enactment of this Act
(or such later date set by the Secretary if litigation delays
rapid succession).
(e) LOAN APPROVAL AUTHORITY.—Approval authority
for loans and loan guarantees in connection with the elec-
tric and telephone loan and loan guarantee programs au-
thorized by the Rural Electrification Act of 1936 (7 U.S.C.
901 et seq.) shall not be transferred to, or conditioned on
review of, a State director or other employee whose primary
duty is not the review and approval of such loans or the
provision of assistance to such borrowers.
(f) CONFORMING AMENDMENTS.—
(1) EXISTING POSITION.—Section 3 of the Rural
Development Policy Act of 1980 (7 U.S.C. 2211b) is
amended by striking subsection (a).
107
(2) EXECUTIVE
SCHEDULE.—Section 5314 of
title 5, United States Code, is amended by striking
‘‘Under Secretary of Agriculture for Small Commu-
nity and Rural Development.’’ and inserting ‘‘Under
Secretary of Agriculture for Rural Economic and
Community Development.’’.
(3) REPEAL OF RURAL DEVELOPMENT ADMINIS-
TRATION.—Section 364 of the Consolidated Farm and
Rural Development Act (7 U.S.C. 2006f) is repealed.
SEC. 232. RURAL UTILITIES SERVICE.
(a) ESTABLISHMENT REQUIRED.—The Secretary shall
establish and maintain within the Department the Rural
Utilities Service and assign to the Service such functions
as the Secretary considers appropriate.
(b) ADMINISTRATOR.—
(1) APPOINTMENT.—The Rural Utilities Service
shall be headed by an Administrator who shall be ap-
pointed by the President, by and with the advice and
consent of the Senate.
(2) SUCCESSION.—Any official who is serving as
Administrator of the Rural Electrification Adminis-
tration on the date of the enactment of this Act and
who was appointed by the President, by and with the
advice and consent of the Senate—
108
(A) may be considered to be serving in the
successor position established under paragraph
(1); and
(B) shall not be required to be reappointed
to that position by reason of the enactment of
this Act.
(3) EXECUTIVE
SCHEDULE.—Section 5315 of
title 5, United States Code, is amended by adding at
the end the following:
‘‘Administrator, Rural Utilities Service, Depart-
ment of Agriculture.’’.
(c) FUNCTIONS.—The Secretary shall carry out
through the Rural Utilities Service the following functions
that are under the jurisdiction of the Department:
(1) Electric and telephone loan programs and
water and waste facility activities authorized by law,
including—
(A) the Rural Electrification Act of 1936 (7
U.S.C. 901 et seq.); and
(B) section 2322 of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C.
1926–1); and
(2) Water and waste facility programs and ac-
tivities authorized by law, including—
109
(A) sections 306, 306A, 306B, and 306C,
the provisions of sections 309 and 309A relating
to assets, terms, and conditions of water and
sewer programs, section 310B(b)(2), and the
amendment made by section 342 of the Consoli-
dated Farm and Rural Development Act (7
U.S.C. 1926, 1926a, 1926b, 1926c, 1929, 1929a,
1932(b)(2), and 1013a); and
(B) section 2324 of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C.
1926 note).
SEC. 233. RURAL HOUSING AND COMMUNITY DEVELOP-
MENT SERVICE.
(a) ESTABLISHMENT AUTHORIZED.—Notwithstanding
any other provision of law, the Secretary is authorized to
establish and maintain within the Department the Rural
Housing and Community Development Service and to as-
sign to the Service such functions as the Secretary considers
appropriate.
(b) FUNCTIONS.—If the Secretary establishes the Rural
Housing and Community Development Service under sub-
section (a), the Secretary is authorized to assign to the Serv-
ice jurisdiction over the following:
(1) Programs and activities under title V of the
Housing Act of 1949 (42 U.S.C. 1471 et seq.).
110
(2) Programs and activities authorized under
section 310B(i) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1932(i)) and related pro-
visions of law.
(3) Programs and activities that relate to rural
community lending programs, including programs
authorized by sections 365 through 369 of the Consoli-
dated Farm and Rural Development Act (7 U.S.C.
2008–2008d).
SEC. 234. RURAL BUSINESS AND COOPERATIVE DEVELOP-
MENT SERVICE.
(a) ESTABLISHMENT AUTHORIZED.—Notwithstanding
any other provision of law, the Secretary is authorized to
establish and maintain within the Department the Rural
Business and Cooperative Development Service and to as-
sign to the Service such functions as the Secretary considers
appropriate.
(b) FUNCTIONS.—If the Secretary establishes the Rural
Business and Cooperative Development Service under sub-
section (a), the Secretary is authorized to assign to the Serv-
ice jurisdiction over the following:
(1) Section 313 and title V of the Rural Elec-
trification Act of 1936 (7 U.S.C. 940c and 950aa et
seq.).
111
(2) Subtitle G of title XVI of the Food, Agri-
culture, Conservation, and Trade Act of 1990 (7
U.S.C. 5901 et seq.).
(3) Sections 306(a)(1) and 310B of the Consoli-
dated Farm and Rural Development Act (7 U.S.C.
1926(a)(1) and 1932).
(4) Section 1323 of the Food Security Act of
1985 (Public Law 99–198; 7 U.S.C. 1932 note).
(5) The Act of July 2, 1926 (44 Stat. 802, chap-
ter 725; 7 U.S.C. 451 et seq.).
SEC. 235. CONFORMING AMENDMENTS REGARDING RURAL
ELECTRIFICATION ADMINISTRATION.
(a) AMENDMENTS TO RURAL ELECTRIFICATION ACT
OF 1936.—The Rural Electrification Act of 1936 (7 U.S.C.
901 et seq.) is amended—
(1) by striking the first section (7 U.S.C. 901)
and inserting the following:
‘‘SECTION 1. SHORT TITLE.
‘‘This Act may be cited as the ‘Rural Electrification
Act of 1936’.’’;
(2) in section 2(a) (7 U.S.C. 902(a)), by striking
‘‘Administrator’’ and inserting ‘‘Secretary of Agri-
culture’’;
(3) in section 3(a) (7 U.S.C. 903(a))—
112
(A) by striking ‘‘Administrator, upon the
request and approval of the Secretary of Agri-
culture,’’ and inserting ‘‘Secretary’’; and
(B) by striking ‘‘Administrator appointed
pursuant to the provisions of this Act or from
the Administrator of the Rural Electrification
Administration established by Executive Order
Numbered 7037’’ and inserting ‘‘Secretary’’;
(4) in section 8 (7 U.S.C. 908)—
(A) by striking ‘‘Administrator authorized
to be appointed by this Act’’ and inserting ‘‘Sec-
retary’’; and
(B) by striking ‘‘Rural Electrification Ad-
ministration created by this Act’’ and inserting
‘‘Secretary’’;
(5) by striking section 11A (7 U.S.C. 911a);
(6) in section 13 (7 U.S.C. 913), by inserting be-
fore the period at the end the following: ‘‘; and the
term ‘Secretary’ shall be deemed to mean the Sec-
retary of Agriculture’’;
(7) in sections 206(b)(2), 306A(b), 311, and
405(b)(1)(A) (7 U.S.C. 927(b)(2), 936a(b), 940a, and
945(b)(1)(A)), by striking ‘‘Rural Electrification Ad-
ministration’’ each place it appears and inserting
‘‘Secretary’’;
113
(8) in sections 305(c)(2)(C)(ii)(II) and 306E(d)
(7 U.S.C. 935(c)(2)(C)(ii)(II) and 936e(d)), by strik-
ing ‘‘ADMINISTRATOR’’ and inserting ‘‘SECRETARY’’;
(9) in section 403(b) (7 U.S.C. 943(b)), by strik-
ing ‘‘Rural Electrification Administration or of any
other agency of the Department of Agriculture,’’ and
inserting ‘‘Secretary,’’;
(10) in section 404 (7 U.S.C. 944), by striking
‘‘the Administrator of the Rural Electrification Ad-
ministration’’ and inserting ‘‘the Secretary shall des-
ignate an official of the Department of Agriculture
who’’;
(11) in sections 406(c) and 410 (7 U.S.C. 946(c)
and 950), by striking ‘‘Administrator of the Rural
Electrification Administration’’ each place it appears
and inserting ‘‘Secretary’’;
(12) in the heading of section 501 (7 U.S.C.
950aa), by striking ‘‘OF REA ADMINISTRATOR’’;
and
(13) except as otherwise provided in this sub-
section, by striking ‘‘Administrator’’ each place it ap-
pears in such Act and inserting ‘‘Secretary’’.
(b) 
MISCELLANEOUS
AMENDMENTS.—(1) 
Section
236(a) of the Disaster Relief Act of 1970 (7 U.S.C. 912a)
is amended by striking ‘‘Rural Electrification Administra-
114
tion’’ and inserting ‘‘Secretary under the Rural Electrifica-
tion Act of 1936 (7 U.S.C. 901 et seq.)’’.
(2) Section 505 of the Department of Agriculture Or-
ganic Act of 1944 (7 U.S.C. 915) is amended—
(A) by striking ‘‘Rural Electrification Adminis-
tration’’ and inserting ‘‘Secretary of Agriculture’’;
and
(B) by striking ‘‘its’’ and inserting ‘‘the Sec-
retary’s’’.
(3) Section 401 of the Rural Electrification Act of
1938 (7 U.S.C. 903 note) is amended in the second para-
graph by striking ‘‘Administrator of the Rural Electrifica-
tion Administration’’ and inserting ‘‘Secretary of Agri-
culture’’.
(4) Chapter 1 of subtitle D of title XXIII of the Food,
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C.
950aaa et seq.), relating to Distance Learning and Medical
Link Programs, is amended—
(A) in section 2333—
(i) by striking paragraph (1); and
(ii) 
by 
redesignating 
paragraphs 
(2)
through (11) as paragraphs (1) through (10), re-
spectively;
(B) in section 2334(h)(2), by striking ‘‘section
2333(3)(F)’’ and inserting ‘‘section 2333(2)(F)’’; and
115
(C) by striking ‘‘Administrator’’ each place it
appears and inserting ‘‘Secretary’’.
(5) Section 306(a)(15) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1926(a)(15)) is amend-
ed—
(A) by striking subparagraph (C); and
(B) by redesignating subparagraph (D) as sub-
paragraph (C).
(6) Section 2322(d) of the Food, Agriculture, Conserva-
tion, and Trade Act of 1990 (7 U.S.C. 1926–1(d)) is amend-
ed—
(A) by striking paragraph (2); and
(B) by redesignating paragraph (3) as para-
graph (2).
Subtitle D—Food, Nutrition, and
Consumer Services
SEC. 241. UNDER SECRETARY OF AGRICULTURE FOR FOOD,
NUTRITION, AND CONSUMER SERVICES.
(a) AUTHORIZATION.—The Secretary is authorized to
establish in the Department the position of Under Secretary
of Agriculture for Food, Nutrition, and Consumer Services.
(b) CONFIRMATION REQUIRED.—If the Secretary es-
tablishes the position of Under Secretary of Agriculture for
Food, Nutrition, and Consumer Services authorized under
subsection (a), the Under Secretary shall be appointed by
116
the President, by and with the advice and consent of the
Senate.
(c) FUNCTIONS OF UNDER SECRETARY.—
(1) PRINCIPAL
FUNCTIONS.—Upon establish-
ment, the Secretary shall delegate to the Under Sec-
retary of Agriculture for Food, Nutrition, and
Consumer Services those functions under the jurisdic-
tion of the Department that are related to food, nutri-
tion, and consumer services (except as provided in
section 261(b)(1)).
(2) ADDITIONAL
FUNCTIONS.—The Under Sec-
retary of Agriculture for Food, Nutrition, and
Consumer Services shall perform such other functions
as may be required by law or prescribed by the Sec-
retary.
(d) SUCCESSION.—Any official who is serving as As-
sistant Secretary of Agriculture for Food and Consumer
Services on the date of the enactment of this Act and who
was appointed by the President, by and with the advice
and consent of the Senate, shall not be required to be
reappointed under subsection (b) to the successor position
authorized under subsection (a) if the Secretary establishes
the position, and the official occupies the new position,
within 180 days after the date of the enactment of this Act
117
(or such later date set by the Secretary if litigation delays
rapid succession).
(e) EXECUTIVE SCHEDULE.—Section 5314 of title 5,
United States Code, is amended by inserting after the item
relating to the Under Secretary of Agriculture for Farm
and Foreign Agricultural Services (as added by section
225(e)(2)) the following:
‘‘Under Secretary of Agriculture for Food, Nutri-
tion, and Consumer Services.’’.
Subtitle E—Natural Resources and
Environment
SEC. 245. UNDER SECRETARY OF AGRICULTURE FOR NATU-
RAL RESOURCES AND ENVIRONMENT.
(a) AUTHORIZATION.—The Secretary is authorized to
establish in the Department the position of Under Secretary
of Agriculture for Natural Resources and Environment.
(b) CONFIRMATION REQUIRED.—If the Secretary es-
tablishes the position of Under Secretary of Agriculture for
Natural Resources and Environment authorized under sub-
section (a), the Under Secretary shall be appointed by the
President, by and with the advice and consent of the Senate.
(c) FUNCTIONS OF UNDER SECRETARY.—
(1) PRINCIPAL
FUNCTIONS.—Upon establish-
ment, the Secretary shall delegate to the Under Sec-
retary of Agriculture for Natural Resources and Envi-
118
ronment those functions under the jurisdiction of the
Department that are related to natural resources and
environment (except to the extent those functions are
delegated under section 226).
(2) ADDITIONAL
FUNCTIONS.—The Under Sec-
retary of Agriculture for Natural Resources and Envi-
ronment shall perform such other functions and duties
as may be required by law or prescribed by the Sec-
retary.
(d) SUCCESSION.—Any official who is serving as As-
sistant Secretary of Agriculture for Natural Resources and
Environment on the date of the enactment of this Act and
who was appointed by the President, by and with the advice
and consent of the Senate, shall not be required to be
reappointed under subsection (b) to the successor position
authorized under subsection (a) if the Secretary establishes
the position, and the official occupies the new position,
within 180 days after the date of the enactment of this Act
(or such later date set by the Secretary if litigation delays
rapid succession).
(e) EXECUTIVE SCHEDULE.—Section 5314 of title 5,
United States Code, is amended by inserting after the item
relating to the Under Secretary of Agriculture for Food, Nu-
trition, and Consumer Services (as added by section 241(e))
the following:
120
(6) Salinity control program under section
202(c) of the Colorado River Basin Salinity Control
Act (43 U.S.C. 1592(c)).
(7) The Farms for the Future Act of 1990 (7
U.S.C. 4201 note).
(8) Such other functions as the Secretary consid-
ers appropriate, except functions under subchapter B
of chapter 1 of subtitle D of title XII of the Food Se-
curity Act of 1985 (16 U.S.C. 3831–3836) and the ag-
ricultural conservation program under the Soil Con-
servation and Domestic Allotment Act (16 U.S.C.
590g et seq.).
(c) SPECIAL CONCURRENCE REQUIREMENTS FOR CER-
TAIN FUNCTIONS.—In carrying out the programs specified
in paragraphs (2), (3), (4), and (6) of subsection (b) and
the program under subchapter C of chapter 1 of subtitle
D of title XII of the Food Security Act of 1985 (16 U.S.C.
3837–3837f), the Secretary shall—
(1) acting on the recommendations of the Natu-
ral Resources Conservation Service, with the concur-
rence of the Consolidated Farm Service Agency, issue
regulations to carry out such programs;
(2) ensure that the Natural Resources Conserva-
tion Service, in establishing policies, priorities, and
guidelines for each such program, does so with the
121
concurrence of the Consolidated Farm Service Agency
at national, State, and local levels;
(3) ensure that, in reaching such concurrence at
the local level, the Natural Resources Conservation
Service works in cooperation with Soil and Water
Conservation Districts or similar organizations estab-
lished under State law;
(4) ensure that officials of county and area com-
mittees established under section 8(b)(5) of the Soil
Conservation and Domestic Allotment Act (16 U.S.C.
590h(b)(5)) meet annually with officials of such Dis-
tricts or similar organizations to consider local con-
servation priorities and guidelines; and
(5) take steps to ensure that the concurrence
process does not interfere with the effective delivery of
such programs.
(d) USE OF FEDERAL AND NON-FEDERAL EMPLOY-
EES.—
(1) USE AUTHORIZED.—In the implementation
of functions assigned to the Natural Resources Con-
servation Service, the Secretary may use interchange-
ably in local offices of the Service both Federal em-
ployees of the Department and non-Federal employees
of county and area committees established under sec-
122
tion 8(b)(5) of the Soil Conservation and Domestic
Allotment Act (16 U.S.C. 590h(b)(5)).
(2) EXCEPTION.—Notwithstanding paragraph
(1), no personnel action (as defined in section
2302(a)(2)(A) of title 5, United States Code) may be
taken with respect to a Federal employee unless such
action is taken by another Federal employee.
(e) SAVINGS PROVISION.—For purposes of subsections
(c) and (d) of this section:
(1) A reference to the ‘‘Natural Resources Con-
servation Service’’ includes any other office, agency,
or administrative unit of the Department assigned the
functions authorized for the Natural Resources Con-
servation Service under this section.
(2) A reference to the ‘‘Consolidated Farm Serv-
ice Agency’’ includes any other office, agency, or ad-
ministrative unit of the Department assigned the
functions authorized for the Consolidated Farm Serv-
ice Agency under section 226.
(f) CONFORMING AMENDMENTS.—
(1) SOIL CONSERVATION SERVICE.—Section 5 of
the Soil Conservation and Domestic Allotment Act
(16 U.S.C. 590e) is repealed.
123
(2) SOIL
AND
WATER
RESOURCES
CONSERVA-
TION.—The Soil and Water Resources Conservation
Act of 1977 (16 U.S.C. 2001) is amended—
(A) in section 2(2) (16 U.S.C. 2001(2))—
(i) by striking ‘‘created the Soil Con-
servation Service’’; and
(ii) by striking ‘‘Department of Agri-
culture which’’ and inserting ‘‘, has ensured
that the Department of Agriculture’’;
(B) in section 3(2) (16 U.S.C. 2002(2)), by
striking ‘‘through the Soil Conservation Service’’;
and
(C) in section 6(a) (16 U.S.C. 2005(a)), by
striking ‘‘Soil Conservation Service’’ and insert-
ing ‘‘Secretary’’.
(3) STATE
TECHNICAL
COMMITTEES.—Section
1262 of the Food Security Act of 1985 (16 U.S.C.
3862) is amended by adding at the end the following
new subsection:
‘‘(e) FACA REQUIREMENTS.—The committees estab-
lished under section 1261 shall be exempt from the Federal
Advisory Committee Act (5 U.S.C. App.).’’.
SEC. 247. REORGANIZATION OF FOREST SERVICE.
(a) REQUIRED ELEMENTS OF REORGANIZATION PRO-
POSALS.—Reorganization proposals that are developed by
124
the Secretary to carry out the designation by the President
of the Forest Service as a Reinvention Lab pursuant to the
National Performance Review, dated September 1993, shall
include proposals for—
(1) reorganizing the Service in a manner that is
consistent with the principles of interdisciplinary
planning;
(2) redefining and consolidating the mission and
roles of, and research conducted by, employees of the
Service in connection with the National Forest Sys-
tem and State and private forestry to facilitate inter-
disciplinary planning and to eliminate functional-
ism;
(3) reforming the budget structure of the Service
to support interdisciplinary planning, including re-
ducing the number of budget line items;
(4) defining new measures of accountability so
that Congress may meet the constitutional obligation
of Congress to oversee the Service;
(5) achieving structural and organizational con-
solidations;
(6) to the extent practicable, sharing office space,
equipment, vehicles, and electronic systems with other
administrative units of the Department and other
Federal field offices, including proposals for using an
125
on-line system by all administrative units of the De-
partment to maximize administrative efficiency; and
(7) reorganizing the Service in a manner that
will result in a larger percentage of employees of the
Service being retained at organizational levels below
regional offices, research stations, and the area office
of the Service.
(b) REPORT.—Not later than March 31, 1995, the Sec-
retary shall submit a report to the Committee on Agri-
culture of the House of Representatives and the Committee
on Agriculture, Nutrition, and Forestry of the Senate that
describes actions taken to carry out subsection (a), identifies
any disparities in regional funding patterns, and contains
the rationale behind the disparities.
Subtitle F—Research, Education,
and Economics
SEC. 251. UNDER SECRETARY OF AGRICULTURE FOR RE-
SEARCH, EDUCATION, AND ECONOMICS.
(a) AUTHORIZATION.—The Secretary is authorized to
establish in the Department the position of Under Secretary
of Agriculture for Research, Education, and Economics.
(b) CONFIRMATION REQUIRED.—If the Secretary es-
tablishes the position of Under Secretary of Agriculture for
Research, Education, and Economics authorized under sub-
126
section (a), the Under Secretary shall be appointed by the
President, by and with the advice and consent of the Senate.
(c) FUNCTIONS OF UNDER SECRETARY.—
(1) PRINCIPAL
FUNCTIONS.—Upon establish-
ment, the Secretary shall delegate to the Under Sec-
retary of Agriculture for Research, Education, and
Economics those functions and duties under the juris-
diction of the Department that are related to research,
education, and economics.
(2) ADDITIONAL
FUNCTIONS.—The Under Sec-
retary of Agriculture for Research, Education, and
Economics shall perform such other functions and du-
ties as may be required by law or prescribed by the
Secretary.
(d) COOPERATIVE STATE RESEARCH, EDUCATION, AND
EXTENSION SERVICE.—
(1) ESTABLISHMENT.—There is established in
the Department a Cooperative State Research, Edu-
cation, and Extension Service.
(2) FUNCTIONS.—The Secretary shall delegate to
the Cooperative State Research, Education, and Ex-
tension Service functions related to cooperative State
research programs and cooperative extension and edu-
cation programs that are under the jurisdiction of the
Department.
127
(3) OFFICER-IN-CHARGE.—If the Secretary estab-
lishes the position of Under Secretary of Agriculture
for Research, Education, and Economics, the officer
in charge of the Cooperative State Research, Edu-
cation, and Extension Service shall report directly to
the Under Secretary.
(e) EXECUTIVE SCHEDULE.—Section 5314 of title 5,
United States Code, is amended by inserting after the item
relating to the Under Secretary of Agriculture for Natural
Resources and Environment (as added by section 245(e))
the following:
‘‘Under Secretary of Agriculture for Research,
Education, and Economics.’’.
SEC. 252. PROGRAM STAFF.
In making the personnel reductions required under sec-
tion 213, the Secretary shall reduce the number of Federal
research and education personnel of the Department by a
percentage equal to at least the percentage of overall Depart-
ment personnel reductions. The Secretary shall achieve such
reduction in research and education personnel in a manner
that minimizes duplication and maximizes coordination be-
tween Federal and State research and extension activities.
128
Subtitle G—Food Safety
SEC. 261. UNDER SECRETARY OF AGRICULTURE FOR FOOD
SAFETY.
(a) ESTABLISHMENT.—There is established in the De-
partment of Agriculture the position of Under Secretary of
Agriculture for Food Safety. The Under Secretary shall be
appointed by the President, by and with the advice and
consent of the Senate, from among individuals with special-
ized training or significant experience in food safety or
public health programs.
(b) FUNCTIONS OF UNDER SECRETARY.—
(1) PRINCIPAL FUNCTIONS.—The Secretary shall
delegate to the Under Secretary of Agriculture for
Food Safety those functions and duties under the ju-
risdiction of the Department that are primarily relat-
ed to food safety.
(2) ADDITIONAL
FUNCTIONS.—The Under Sec-
retary of Agriculture for Food Safety shall perform
such other functions and duties as may be required by
law or prescribed by the Secretary.
(c) EXECUTIVE SCHEDULE.—Section 5314 of title 5,
United States Code, is amended by inserting after the item
relating to the Under Secretary of Agriculture for Research,
Education, and Economics (as added by section 251(e)) the
following:
129
‘‘Under Secretary of Agriculture for Food Safe-
ty.’’.
(d) TECHNICAL AND SCIENTIFIC REVIEW GROUPS.—
The Secretary, acting through the Under Secretary for Re-
search, Education, and Economics, may, without regard to
the provisions of title 5, United States Code, governing ap-
pointment in the competitive service, and without regard
to the provisions of chapter 51 and subchapter III of chap-
ter 53 of title 5, United States Code, relating to classifica-
tion and General Schedule pay rates—
(1) establish such technical and scientific review
groups as are needed to carry out the functions of the
Department; and
(2) appoint and pay the members of the groups,
except that officers and employees of the United States
shall not receive additional compensation for service
as a member of a group.
SEC. 262. CONDITIONS FOR IMPLEMENTATION OF ALTER-
ATIONS IN THE LEVEL OF ADDITIVES AL-
LOWED IN ANIMAL DIETS.
(a) CONDITIONS.—The Food and Drug Administration
shall not implement or enforce the final rule described in
subsection (b) to alter the level of selenium allowed to be
used as a supplement in animal diets unless the Commis-
130
sioner of the Food and Drug Administration makes a deter-
mination that—
(1) selenium additives are not essential, at levels
authorized in the absence of such final rule, to main-
tain animal nutrition and protect animal health;
(2) selenium at such levels is not safe to the ani-
mals consuming the additive;
(3) selenium at such levels is not safe to individ-
uals consuming edible portions of animals that re-
ceive the additive;
(4) selenium at such levels does not achieve its
intended effect of promoting normal growth and re-
production of livestock and poultry; and
(5) the manufacture and use of selenium at such
levels cannot reasonably be controlled by adherence to
current good manufacturing practice requirements.
(b) FINAL RULE DESCRIBED.—The final rule referred
to in subsection (a) is the final rule issued by the Food
and Drug Administration and published in the Federal
Register on September 13, 1993 (58 Fed. Reg. 47962), in
which the Administration stayed 1987 amendments to the
selenium food additive regulations, and any modification
of such rule issued after the date of the enactment of this
Act.
131
Subtitle H—National Appeals
Division
SEC. 271. DEFINITIONS.
For purposes of this subtitle:
(1) ADVERSE DECISION.—The term ‘‘adverse de-
cision’’ means an administrative decision made by an
officer, employee, or committee of an agency that is
adverse to a participant. The term includes a denial
of equitable relief by an agency or the failure of an
agency to issue a decision or otherwise act on the re-
quest or right of the participant. The term does not
include a decision over which the Board of Contract
Appeals has jurisdiction.
(2) AGENCY.—The term ‘‘agency’’ means any
agency of the Department designated by the Secretary
or a successor agency of the Department, except that
the term shall include the following (and any succes-
sor to the following):
(A) The Consolidated Farm Service Agency
(or other office, agency, or administrative unit of
the Department assigned the functions author-
ized for the Consolidated Farm Service Agency
under section 226).
(B) The Commodity Credit Corporation,
with respect to domestic programs.
132
(C) The Farmers Home Administration.
(D) The Federal Crop Insurance Corpora-
tion.
(E) The Rural Development Administra-
tion.
(F) The Natural Resources Conservation
Service (or other office, agency, or administra-
tive unit of the Department assigned the func-
tions authorized for the Natural Resources Con-
servation Service under section 246(b)).
(G) A State, county, or area committee es-
tablished under section 8(b)(5) of the Soil Con-
servation and Domestic Allotment Act (16 U.S.C.
590h(b)(5)).
(3) APPELLANT.—The term ‘‘appellant’’ means a
participant who appeals an adverse decision in ac-
cordance with this subtitle.
(4) CASE
RECORD.—The term ‘‘case record’’
means all the materials maintained by the Secretary
related to an adverse decision.
(5) DIRECTOR.—The term ‘‘Director’’ means the
Director of the Division.
(6) DIVISION.—The term ‘‘Division’’ means the
National Appeals Division established by this title.
133
(7) HEARING OFFICER.—The term ‘‘hearing offi-
cer’’ means an individual employed by the Division
who hears and determines appeals of adverse decisions
by any agency.
(8) IMPLEMENT.—The term ‘‘implement’’ refers
to those actions necessary to effectuate fully and
promptly a final determination of the Division not
later than 30 calendar days after the effective date of
the final determination.
(9) PARTICIPANT.—The term ‘‘participant’’ shall
have the meaning given that term by the Secretary by
regulation.
SEC. 272. NATIONAL APPEALS DIVISION AND DIRECTOR.
(a) ESTABLISHMENT
OF DIVISION.—The Secretary
shall establish and maintain an independent National Ap-
peals Division within the Department to carry out this sub-
title.
(b) DIRECTOR.—
(1) APPOINTMENT.—The Division shall be head-
ed by a Director, appointed by the Secretary from
among persons who have substantial experience in
practicing administrative law. In considering appli-
cants for the position of Director, the Secretary shall
consider persons currently employed outside Govern-
ment as well as Government employees.
134
(2) TERM
AND
REMOVAL.—The Director shall
serve for a 6-year term of office, and shall be eligible
for reappointment. The Director shall not be subject
to removal during the term of office, except for cause
established in accordance with law.
(3) POSITION CLASSIFICATION.—The position of
the Director may not be a position in the excepted
service or filled by a noncareer appointee.
(c) DIRECTION, CONTROL, AND SUPPORT.—The Direc-
tor shall be free from the direction and control of any person
other than the Secretary. The Division shall not receive ad-
ministrative support (except on a reimbursable basis) from
any agency other than the Office of the Secretary. The Sec-
retary may not delegate to any other officer or employee
of the Department, other than the Director, the authority
of the Secretary with respect to the Division.
(d) DETERMINATION OF APPEALABILITY OF AGENCY
DECISIONS.—If an officer, employee, or committee of an
agency determines that a decision is not appealable and
a participant appeals the decision to the Director, the Di-
rector shall determine whether the decision is adverse to the
individual participant and thus appealable or is a matter
of general applicability and thus not subject to appeal. The
determination of the Director as to whether a decision is
appealable shall be administratively final.
135
(e) DIVISION PERSONNEL.—The Director shall appoint
such hearing officers and other employees as are necessary
for the administration of the Division. A hearing officer or
other employee of the Division shall have no duties other
than those that are necessary to carry out this subtitle.
SEC. 273. TRANSFER OF FUNCTIONS.
There are transferred to the Division all functions ex-
ercised and all administrative appeals pending before the
effective date of this subtitle (including all related functions
of any officer or employee) of or relating to—
(1) the National Appeals Division established by
section 426(c) of the Agricultural Act of 1949 (7
U.S.C. 1433e(c)) (as in effect on the day before the
date of the enactment of this Act);
(2) the National Appeals Division established by
subsections (d) through (g) of section 333B of the Con-
solidated Farm and Rural Development Act (7 U.S.C.
1983b) (as in effect on the day before the date of the
enactment of this Act);
(3) appeals of decisions made by the Federal
Crop Insurance Corporation; and
(4) appeals of decisions made by the Soil Con-
servation Service (as in effect on the day before the
date of the enactment of this Act).
136
SEC. 274. NOTICE AND OPPORTUNITY FOR HEARING.
Not later than 10 working days after an adverse deci-
sion is made that affects the participant, the Secretary shall
provide the participant with written notice of such adverse
decision and the rights available to the participant under
this subtitle or other law for the review of such adverse deci-
sion.
SEC. 275. INFORMAL HEARINGS.
If an officer, employee, or committee of an agency
makes an adverse decision, the agency shall hold, at the re-
quest of the participant, an informal hearing on the deci-
sion. With respect to programs carried out through the Con-
solidated Farm Service Agency (or other office, agency, or
administrative unit of the Department assigned to carry
out the programs authorized for the Consolidated Farm
Service Agency under section 226), the Secretary shall
maintain the informal appeals process applicable to such
programs, as in effect on the date of the enactment of the
subtitle. If a mediation program is available under title V
of the Agricultural Credit Act of 1987 (7 U.S.C. 5101 et
seq.) as a part of the informal hearing process, the partici-
pant shall be offered the right to choose such mediation.
SEC. 276. RIGHT OF PARTICIPANTS TO DIVISION HEARING.
(a) APPEAL TO DIVISION FOR HEARING.—Subject to
subsection (b), a participant shall have the right to appeal
137
an adverse decision to the Division for an evidentiary hear-
ing by a hearing officer consistent with section 277.
(b) TIME FOR APPEAL.—To be entitled to a hearing
under section 277, a participant shall request the hearing
not later than 30 days after the date on which the partici-
pant first received notice of the adverse decision.
SEC. 277. DIVISION HEARINGS.
(a) GENERAL POWERS OF DIRECTOR AND HEARING
OFFICERS.—
(1) ACCESS
TO
CASE
RECORD.—The Director
and hearing officer shall have access to the case record
of any adverse decision appealed to the Division for
a hearing.
(2) ADMINISTRATIVE PROCEDURES.—The Direc-
tor and hearing officer shall have the authority to re-
quire the attendance of witnesses, and the production
of evidence, by subpoena and to administer oaths and
affirmations. Except to the extent required for the dis-
position of ex parte matters as authorized by law—
(A) an interested person outside the Divi-
sion shall not make or knowingly cause to be
made to the Director or a hearing officer who is
or may reasonably be expected to be involved in
the evidentiary hearing or review of an adverse
decision, an ex parte communication (as defined
138
in section 551(14) of title 5, United States Code)
relevant to the merits of the proceeding;
(B) the Director and such hearing officer
shall not make or knowingly cause to be made to
any interested person outside the Division an ex
parte communication relevant to the merits of
the proceeding.
(b) TIME FOR HEARING.—Upon a timely request for
a hearing under section 276(b), an appellant shall have the
right to have a hearing by the Division on the adverse deci-
sion within 45 days after the date of the receipt of the re-
quest for the hearing.
(c) LOCATION AND ELEMENTS OF HEARING.—
(1) LOCATION.—A hearing on an adverse deci-
sion shall be held in the State of residence of the ap-
pellant or at a location that is otherwise convenient
to the appellant and the Division.
(2) EVIDENTIARY
HEARING.—The evidentiary
hearing before a hearing officer shall be in person,
unless the appellant agrees to a hearing by telephone
or by a review of the case record. The hearing officer
shall not be bound by previous findings of fact by the
agency in making a determination.
(3) INFORMATION AT HEARING.—The hearing of-
ficer shall consider information presented at the hear-
139
ing without regard to whether the evidence was known
to the agency officer, employee, or committee making
the adverse decision at the time the adverse decision
was made. The hearing officer shall leave the record
open after the hearing for a reasonable period of time
to allow the submission of information by the appel-
lant or the agency after the hearing to the extent nec-
essary to respond to new facts, information, argu-
ments, or evidence presented or raised by the agency
or appellant.
(4) BURDEN
OF
PROOF.—The appellant shall
bear the burden of proving that the adverse decision
of the agency was erroneous.
(d) DETERMINATION NOTICE.—The hearing officer
shall issue a notice of the determination on the appeal not
later than 30 days after a hearing or after receipt of the
request of the appellant to waive a hearing, except that the
Director may establish an earlier or later deadline. If the
determination is not appealed to the Director for review
under section 278, the notice provided by the hearing officer
shall be considered to be a notice of an administratively
final determination.
(e) EFFECTIVE DATE.—The final determination shall
be effective as of the date of filing of an application, the
140
date of the transaction or event in question, or the date of
the original adverse decision, whichever is applicable.
SEC. 278. DIRECTOR REVIEW OF DETERMINATIONS OF
HEARING OFFICERS.
(a) REQUESTS FOR DIRECTOR REVIEW.—
(1) TIME
FOR
REQUEST
BY
APPELLANT.—Not
later than 30 days after the date on which an appel-
lant receives the determination of a hearing officer
under section 277, the appellant shall submit a writ-
ten request to the Director for review of the deter-
mination in order to be entitled to a review by the
Director of the determination.
(2) TIME FOR REQUEST BY AGENCY HEAD.—Not
later 15 business days after the date on which an
agency receives the determination of a hearing officer
under section 277, the head of the agency may make
a written request that the Director review the deter-
mination.
(b) DETERMINATION
OF DIRECTOR.—The Director
shall conduct a review of the determination of the hearing
officer using the case record, the record from the evidentiary
hearing under section 277, the request for review, and such
other arguments or information as may be accepted by the
Director. Based on such review, the Director shall issue a
final determination notice that upholds, reverses, or modi-
141
fies the determination of the hearing officer. However, if
the Director determines that the hearing record is inad-
equate, the Director may remand all or a portion of the
determination for further proceedings to complete the hear-
ing record or, at the option of the Director, to hold a new
hearing. The Director shall complete the review and either
issue a final determination or remand the determination
not later than—
(1) 10 business days after receipt of the request
for review, in the case of a request by the head of an
agency for review; or
(2) 30 business days after receipt of the request
for review, in the case of a request by an appellant
for review.
(c) BASIS FOR DETERMINATION.—The determination
of the hearing officer and the Director shall be based on
information from the case record, laws applicable to the
matter at issue, and applicable regulations published in the
Federal Register and in effect on the date of the adverse
decision or the date on which the acts that gave rise to the
adverse decision occurred, whichever date is appropriate.
(d) EQUITABLE RELIEF.—Subject to regulations is-
sued by the Secretary, the Director shall have the authority
to grant equitable relief under this section in the same man-
ner and to the same extent as such authority is provided
142
to the Secretary under section 326 of the Food and Agri-
culture Act of 1962 (7 U.S.C. 1339a) and other laws. Not-
withstanding the administrative finality of a final deter-
mination of an appeal by the Division, the Secretary shall
have the authority to grant equitable or other types of relief
to the appellant after an administratively final determina-
tion is issued by the Division.
(e) EFFECTIVE DATE.—A final determination issued
by the Director shall be effective as of the date of filing of
an application, the date of the transaction or event in ques-
tion, or the date of the original adverse decision, whichever
is applicable.
SEC. 279. JUDICIAL REVIEW.
A final determination of the Division shall be
reviewable and enforceable by any United States district
court of competent jurisdiction in accordance with chapter
7 of title 5, United States Code.
SEC. 280. IMPLEMENTATION OF FINAL DETERMINATIONS
OF DIVISION.
On the return of a case to an agency pursuant to the
final determination of the Division, the head of the agency
shall implement the final determination not later than 30
days after the effective date of the notice of the final deter-
mination.
143
SEC. 281. CONFORMING AMENDMENTS RELATING TO NA-
TIONAL APPEALS DIVISION.
(a) DECISIONS OF STATE, COUNTY, AND AREA COM-
MITTEES.—
(1) APPLICATION
OF
SUBSECTION.—This sub-
section shall apply only with respect to functions of
the Consolidated Farm Service Agency or the Com-
modity Credit Corporation that are under the juris-
diction of a State, county, or area committee estab-
lished under section 8(b)(5) of the Soil Conservation
and Domestic Allotment Act (16 U.S.C. 590h(b)(5))
or an employee of such a committee.
(2) FINALITY.—Each decision of a State, county,
or area committee (or an employee of such a commit-
tee) covered by paragraph (1) that is made in good
faith in the absence of misrepresentation, false state-
ment, fraud, or willful misconduct shall be final not
later than 90 days after the date of filing of the appli-
cation for benefits, unless the decision is—
(A) appealed under this subtitle; or
(B) modified by the Administrator of the
Consolidated Farm Service Agency or the Execu-
tive Vice President of the Commodity Credit Cor-
poration.
(3) RECOVERY OF AMOUNTS.—If the decision of
the State, county, or area committee has become final
144
under paragraph (2), no action may be taken by the
Consolidated Farm Service Agency, the Commodity
Credit Corporation, or a State, county, or area com-
mittee to recover amounts found to have been dis-
bursed as a result of a decision in error unless the
participant had reason to believe that the decision
was erroneous.
(4) SAVINGS PROVISION.—For purposes of this
subsection, a reference to the ‘‘Consolidated Farm
Service Agency’’ includes any other office, agency, or
administrative unit of the Department assigned the
functions authorized for the Consolidated Farm Serv-
ice Agency under section 226.
(b) AGRICULTURAL STABILIZATION AND CONSERVA-
TION SERVICE.—Section 426 of the Agricultural Act of 1949
(7 U.S.C. 1433e) is repealed.
(c) FARMERS HOME ADMINISTRATION.—Section 333B
of the Consolidated Farm and Rural Development Act (7
U.S.C. 1983b) is repealed.
SEC. 282. EXPANSION OF ISSUES COVERED BY STATE MEDI-
ATION PROGRAMS.
(a) EXPANSION OF MEDIATION PROGRAMS.—Section
501 of the Agricultural Credit Act of 1987 (7 U.S.C. 5101)
is amended—
145
(1) in subsection (a), by striking ‘‘an agricul-
tural loan mediation program’’ and inserting ‘‘a me-
diation program’’;
(2) in subsection (b), by striking ‘‘agricultural
loan’’; and
(3) by striking subsection (c) and inserting the
following new subsection:
‘‘(c) REQUIREMENTS
OF STATE MEDIATION PRO-
GRAMS.—
‘‘(1) ISSUES
COVERED.—To be certified as a
qualifying State, the mediation program of the State
must provide mediation services for the persons de-
scribed in paragraph (2) who are involved in agricul-
tural loans or agricultural loans and one or more of
the following issues under the jurisdiction of the De-
partment of Agriculture:
‘‘(A) Wetlands determinations.
‘‘(B) Compliance with farm programs, in-
cluding conservation programs.
‘‘(C) Agricultural credit.
‘‘(D) Rural water loan programs.
‘‘(E) Grazing on National Forest System
lands.
‘‘(F) Pesticides.
146
‘‘(G) Such other issues as the Secretary con-
siders appropriate.
‘‘(2) PERSONS ELIGIBLE FOR MEDIATION.—The
persons referred to in paragraph (1) are producers,
their creditors (if applicable), and other persons di-
rectly affected by actions of the Department of Agri-
culture.
‘‘(3) CERTIFICATION
CONDITIONS.—The Sec-
retary shall certify a State as a qualifying State with
respect to the issues proposed to be covered by the me-
diation program of the State if the mediation pro-
gram—
‘‘(A) provides for mediation services that, if
decisions are reached, result in mediated, mutu-
ally agreeable decisions between the parties to the
mediation;
‘‘(B) is authorized or administered by an
agency of the State government or by the Gov-
ernor of the State;
‘‘(C) provides for the training of mediators;
‘‘(D) provides that the mediation sessions
shall be confidential;
‘‘(E) ensures, in the case of agricultural
loans, that all lenders and borrowers of agricul-
147
tural loans receive adequate notification of the
mediation program; and
‘‘(F) ensures, in the case of other issues cov-
ered by the mediation program, that persons di-
rectly affected by actions of the Department of
Agriculture receive adequate notification of the
mediation program.’’.
(b) PARTICIPATION OF DEPARTMENT.—Section 503 of
such Act (7 U.S.C. 5103) is amended—
(1) by striking ‘‘agricultural loan’’ each place it
appears;
(2) in the matter preceding subparagraph (A) of
subsection (a)(1)—
(A) by inserting ‘‘or agency’’ after ‘‘pro-
gram’’; and
(B) by striking ‘‘that makes, guarantees, or
insures agricultural loans’’;
(3) in subsection (a)(1)(A)—
(A) by inserting ‘‘or agency’’ after ‘‘such
program’’; and
(B) by inserting ‘‘certified under section
501’’ after ‘‘mediation program’’;
(4) in subsection (a)(1)(B)—
(A) by striking ‘‘, effective beginning on the
date of the enactment of this Act,’’; and
148
(B) by inserting ‘‘certified under section
501’’ after ‘‘mediation programs’’; and
(5) in subsection (a)(1)(C)—
(A) in clause (i), by striking ‘‘described in’’
and inserting ‘‘certified under’’; and
(B) in clause (ii), by inserting ‘‘if applica-
ble,’’ before ‘‘present’’.
(c) REGULATIONS.—Section 504 of such Act (7 U.S.C.
5104) is amended—
(1) by striking ‘‘Within 150 days after the date
of the enactment of this Act, the’’ and inserting
‘‘The’’; and
(2) by adding at the end the following new sen-
tence: ‘‘The regulations prescribed by the Secretary
shall require qualifying States to adequately train
mediators to address all of the issues covered by the
mediation program of the State.’’.
(d) REPORT.—Section 505 of such Act (7 U.S.C. 5105)
is amended by striking ‘‘1990’’ and inserting ‘‘1998’’.
(e) AUTHORIZATION
OF APPROPRIATIONS.—Section
506 of such Act (7 U.S.C. 5106) is amended by striking
‘‘1995’’ and inserting ‘‘2000’’.
(f) CONFORMING AMENDMENTS.—
(1) REFERENCES
TO
AGRICULTURAL
LOANS.—
Subtitle A of title V of such Act is amended—
149
(A) in sections 502 and 505(1) (7 U.S.C.
5102, 5105(1)), by striking ‘‘agricultural loan’’
each place it appears; and
(B) in section 505(3) (7 U.S.C. 5105(3)), by
striking ‘‘an agricultural loan mediation’’ and
inserting ‘‘a mediation’’.
(2) WAIVER
OF
FARM
CREDIT
SYSTEM
MEDI-
ATION RIGHTS BY BORROWERS.—Section 4.14E of the
Farm Credit Act of 1971 (12 U.S.C. 2202e) is amend-
ed by striking ‘‘agricultural loan’’.
(3) WAIVER
OF
FMHA
MEDIATION
RIGHTS
BY
BORROWERS.—Section 358 of the Consolidated Farm
and Rural Development Act (7 U.S.C. 2006) is
amended by striking ‘‘agricultural loan’’.
SEC. 283. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated such sums as
may be necessary to carry out the activities of the Division.
Subtitle I—Miscellaneous
Reorganization Provisions
SEC. 291. SUCCESSORSHIP PROVISIONS RELATING TO BAR-
GAINING UNITS AND EXCLUSIVE REPRESENT-
ATIVES.
(a) VOLUNTARY AGREEMENT.—
(1) IN
GENERAL.—If the exercise of the Sec-
retary’s authority under this title results in changes
150
to an existing bargaining unit that has been certified
under chapter 71 of title 5, United States Code, the
affected parties shall attempt to reach a voluntary
agreement on a new bargaining unit and an exclusive
representative for such unit.
(2) CRITERIA.—In carrying out the requirements
of this subsection, the affected parties shall use cri-
teria set forth in—
(A) sections 7103(a)(4), 7111(e), 7111(f)(1),
and 7120 of title 5, United States Code, relating
to determining an exclusive representative; and
(B) section 7112 of title 5, United States
Code (disregarding subsections (b)(5) and (d)
thereof), relating to determining appropriate
units.
(b) EFFECT OF AN AGREEMENT.—
(1) IN GENERAL.—If the affected parties reach
agreement on the appropriate unit and the exclusive
representative for such unit under subsection (a), the
Federal Labor Relations Authority shall certify the
terms of such agreement, subject to paragraph (2)(A).
Nothing in this subsection shall be considered to re-
quire the holding of any hearing or election as a con-
dition for certification.
(2) RESTRICTIONS.—
151
(A) 
CONDITIONS
REQUIRING
NONCERTIFICATION.—The Federal Labor Rela-
tions Authority may not certify the terms of an
agreement under paragraph (1) if—
(i) it determines that any of the cri-
teria referred to in subsection (a)(2) (dis-
regarding section 7112(a) of title 5, United
States Code) have not been met; or
(ii) after the Secretary’s exercise of au-
thority and before certification under this
section, a valid election under section
7111(b) of title 5, United States Code, is
held covering any employees who would be
included in the unit proposed for certifi-
cation.
(B) TEMPORARY
WAIVER
OF
PROVISION
THAT WOULD BAR AN ELECTION AFTER A COL-
LECTIVE
BARGAINING
AGREEMENT
IS
REACHED.—Nothing in section 7111(f)(3) of title
5, United States Code, shall prevent the holding
of an election under section 7111(b) of such title
that covers employees within a unit certified
under paragraph (1), or giving effect to the re-
sults of such an election (including a decision
not to be represented by any labor organization),
152
if the election is held before the end of the 12-
month period beginning on the date such unit is
so certified.
(C) CLARIFICATION.—The certification of a
unit under paragraph (1) shall not, for purposes
of the last sentence of section 7111(b) of title 5,
United States Code, or section 7111(f)(4) of such
title, be treated as if it had occurred pursuant to
an election.
(3) DELEGATION.—
(A) IN GENERAL.—The Federal Labor Rela-
tions Authority may delegate to any regional di-
rector (as referred to in section 7105(e) of title
5, United States Code) its authority under the
preceding provisions of this subsection.
(B) REVIEW.—Any action taken by a re-
gional director under subparagraph (A) shall be
subject to review under the provisions of section
7105(f) of title 5, United States Code, in the
same manner as if such action had been taken
under section 7105(e) of such title, except that in
the case of a decision not to certify, such review
shall be required if application therefor is filed
by an affected party within the time specified in
such provisions.
153
(c) DEFINITION.—For purposes of this section, the
term ‘‘affected party’’ means—
(1) with respect to an exercise of authority by
the Secretary under this title, any labor organization
affected thereby; and
(2) the Department of Agriculture.
SEC. 292. PURCHASE OF AMERICAN-MADE EQUIPMENT AND
PRODUCTS.
(a) SENSE OF CONGRESS.—It is the sense of the Con-
gress that, to the greatest extent practicable, all equipment
and products purchased using funds made available pursu-
ant to this title should be American-made.
(b) NOTICE REQUIREMENT.—In providing financial
assistance to, or entering into any contract with, any entity
using funds made available pursuant to this title, the Sec-
retary, to the greatest extent practicable, shall provide to
such entity a notice describing the statement made in sub-
section (a) by the Congress.
SEC. 293. MISCELLANEOUS CONFORMING AMENDMENTS.
(a) UNITED STATES GRAIN STANDARDS ACT.—The
United States Grain Standards Act (7 U.S.C. 71 et seq.)
is amended—
(1) in section 3 (7 U.S.C. 75)—
(A) by inserting ‘‘and’’ at the end of sub-
section (y);
154
(B) by striking subsections (z) and (aa);
and
(C) by redesignating subsection (bb) as sub-
section (z);
(2) by striking section 3A (7 U.S.C. 75a);
(3) in section 5(b) (7 U.S.C. 77(b)), by striking
‘‘Service employees’’ and inserting ‘‘employees of the
Secretary’’;
(4) in sections 7(j)(2) and 7A(l)(2) (7 U.S.C.
79(j)(2) and 79a(l)(2)), by striking ‘‘supervision by
Service personnel of its field office personnel’’ in the
first sentence of both sections and inserting ‘‘super-
vision by the Secretary of the Secretary’s field office
personnel’’;
(5) in section 12(c) (7 U.S.C. 87a(c)), by strik-
ing ‘‘or Administrator’’;
(6) in section 12(d) (7 U.S.C. 87a(d)), by strik-
ing ‘‘or the Administrator’’;
(7) except as otherwise provided in this sub-
section, by striking ‘‘Administrator’’ each place it ap-
pears and inserting ‘‘Secretary’’; and
(8) except as otherwise provided in this sub-
section, by striking ‘‘Service’’ each place it appears
and inserting ‘‘Secretary’’.
155
(b) PACKERS AND STOCKYARDS ACT, 1921.—Section
407 of the Packers and Stockyards Act, 1921 (7 U.S.C.
228), is amended—
(1) by striking subsection (b);
(2) by redesignating subsections (c), (d), (e), and
(f), as subsections (b), (c), (d), and (e), respectively;
and
(3) in subsection (e) (as so redesignated), by
striking ‘‘subsection (e)’’ and inserting ‘‘subsection
(d)’’.
SEC. 294. REMOVAL OF OBSOLETE ADMINISTRATIVE PROVI-
SIONS.
Section 5316 of title 5, United States Code, is amend-
ed—
(1) by striking ‘‘Administrator, Agricultural
Marketing Service, Department of Agriculture.’’;
(2) by striking ‘‘Administrator, Agricultural Re-
search Service, Department of Agriculture.’’;
(3) by striking ‘‘Administrator, Agricultural
Stabilization and Conservation Service, Department
of Agriculture.’’;
(4) by striking ‘‘Administrator, Farmers Home
Administration.’’;
(5) by striking ‘‘Administrator, Foreign Agricul-
tural Service, Department of Agriculture.’’;
156
(6) by striking ‘‘Administrator, Rural Elec-
trification Administration, Department of Agri-
culture.’’;
(7) by striking ‘‘Administrator, Soil Conserva-
tion Service, Department of Agriculture.’’;
(8) by striking ‘‘Chief Forester of the Forest
Service, Department of Agriculture.’’;
(9) by striking ‘‘Director of Science and Edu-
cation, Department of Agriculture.’’;
(10) by striking ‘‘Administrator, Animal and
Plant Health Inspection Service, Department of Agri-
culture.’’; and
(11) by striking ‘‘Administrator, Federal Grain
Inspection Service, Department of Agriculture.’’.
SEC. 295. PROPOSED CONFORMING AMENDMENTS.
Not later than 180 days after the date of the enactment
of this Act, the Secretary shall submit to Congress rec-
ommended legislation containing additional technical and
conforming amendments to Federal laws that are required
as a result of the enactment of this title.
SEC. 296. TERMINATION OF AUTHORITY.
(a) IN GENERAL.—Subject to subsection (b), the au-
thority delegated to the Secretary by this title to reorganize
the Department shall terminate on the date that is 2 years
after the date of enactment of this Act.
157
(b) FUNCTIONS.—Subsection (a) shall not affect—
(1) the authority of the Secretary to continue to
carry out a function that the Secretary performs on
the date that is 2 years after the date of enactment
of this Act;
(2) the authority delegated to the Secretary
under Reorganization Plan No. 2 of 1953 (5 U.S.C.
App.; 7 U.S.C. 2201 note); or
(3) the authority of an agency, office, officer, or
employee of the Department to continue to perform all
functions delegated or assigned to the entity or person
as of that termination date.
TITLE III—MISCELLANEOUS
SEC. 301. POULTRY LABELING.
It is the sense of Congress that—
(1) the United States Department of Agriculture
should—
(A) carry out the plans of the Department
to hold public hearings for the purpose of receiv-
ing public input on issues related to the condi-
tions under which poultry sold in the United
States may be labeled ‘‘fresh’’; and
(B) finalize and publish a decision on the
issues as expeditiously as possible after holding
the hearings; and