1354 
‘‘(II) the counter-cyclical pro-
gram payment yield; 
‘‘(ii) the acreage planted or prevented 
from being planted for each crop; and 
‘‘(iii) 100 percent of the insurance 
price guarantee; and 
‘‘(B) the product obtained by multi-
plying— 
‘‘(i) 100 percent of the adjusted non-
insured crop assistance program yield; and 
‘‘(ii) 100 percent of the noninsured 
crop assistance program price for each of 
the crops on a farm. 
‘‘(c) LIVESTOCK INDEMNITY PAYMENTS.— 
‘‘(1) PAYMENTS.—The Secretary shall use such 
sums as are necessary from the Trust Fund to make 
livestock indemnity payments to eligible producers 
on farms that have incurred livestock death losses in 
excess of the normal mortality due to adverse weath-
er, as determined by the Secretary, during the cal-
endar year, including losses due to hurricanes, 
floods, blizzards, disease, wildfires, extreme heat, 
and extreme cold. 
‘‘(2) PAYMENT RATES.—Indemnity payments to 
an eligible producer on a farm under paragraph (1) 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01354
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1355 
shall be made at a rate of 75 percent of the market 
value of the applicable livestock on the day before 
the date of death of the livestock, as determined by 
the Secretary. 
‘‘(d) LIVESTOCK FORAGE DISASTER PROGRAM.— 
‘‘(1) DEFINITIONS.—In this subsection: 
‘‘(A) COVERED LIVESTOCK.— 
‘‘(i) IN
GENERAL.—Except as pro-
vided in clause (ii), the term ‘covered live-
stock’ means livestock of an eligible live-
stock producer that, during the 60 days 
prior to the beginning date of a qualifying 
drought or fire condition, as determined by 
the Secretary, the eligible livestock pro-
ducer— 
‘‘(I) owned; 
‘‘(II) leased; 
‘‘(III) purchased; 
‘‘(IV) entered into a contract to 
purchase; 
‘‘(V) is a contract grower; or 
‘‘(VI) sold or otherwise disposed 
of due to qualifying drought condi-
tions during— 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01355
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1356 
‘‘(aa) the current production 
year; or 
‘‘(bb) subject to paragraph 
(3)(B)(ii), 1 or both of the 2 pro-
duction years immediately pre-
ceding the current production 
year. 
‘‘(ii) EXCLUSION.—The term ‘covered 
livestock’ does not include livestock that 
were or would have been in a feedlot, on 
the beginning date of the qualifying 
drought or fire condition, as a part of the 
normal business operation of the eligible 
livestock producer, as determined by the 
Secretary. 
‘‘(B) 
DROUGHT
MONITOR.—The 
term 
‘drought 
monitor’ 
means 
a 
system 
for 
classifying drought severity according to a 
range of abnormally dry to exceptional drought, 
as defined by the Secretary. 
‘‘(C) ELIGIBLE LIVESTOCK PRODUCER.— 
‘‘(i) IN GENERAL.—The term ‘eligible 
livestock producer’ means an eligible pro-
ducer on a farm that— 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01356
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1357 
‘‘(I) is an owner, cash or share 
lessee, or contract grower of covered 
livestock that provides the pastureland 
or grazing land, including cash-leased 
pastureland or grazing land, for the 
livestock; 
‘‘(II) provides the pastureland or 
grazing land for covered livestock, in-
cluding cash-leased pastureland or 
grazing land that is physically located 
in a county affected by drought; 
‘‘(III) certifies grazing loss; and 
‘‘(IV) meets all other eligibility 
requirements established under this 
subsection. 
‘‘(ii) EXCLUSION.—The term ‘eligible 
livestock producer’ does not include an 
owner, cash or share lessee, or contract 
grower of livestock that rents or leases 
pastureland or grazing land owned by an-
other person on a rate-of-gain basis. 
‘‘(D) NORMAL CARRYING CAPACITY.—The 
term ‘normal carrying capacity’, with respect to 
each type of grazing land or pastureland in a 
county, means the normal carrying capacity, as 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01357
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1358 
determined under paragraph (3)(D)(i), that 
would be expected from the grazing land or 
pastureland for livestock during the normal 
grazing period, in the absence of a drought or 
fire that diminishes the production of the graz-
ing land or pastureland. 
‘‘(E) NORMAL
GRAZING
PERIOD.—The 
term ‘normal grazing period’, with respect to a 
county, means the normal grazing period during 
the calendar year for the county, as determined 
under paragraph (3)(D)(i). 
‘‘(2) PROGRAM.—The Secretary shall use such 
sums as are necessary from the Trust Fund to pro-
vide compensation for losses to eligible livestock pro-
ducers due to grazing losses for covered livestock 
due to— 
‘‘(A) a drought condition, as described in 
paragraph (3); or 
‘‘(B) fire, as described in paragraph (4). 
‘‘(3) 
ASSISTANCE
FOR
LOSSES
DUE
TO 
DROUGHT CONDITIONS.— 
‘‘(A) ELIGIBLE LOSSES.— 
‘‘(i) IN
GENERAL.—An eligible live-
stock producer may receive assistance 
under this subsection only for grazing 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01358
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1359 
losses for covered livestock that occur on 
land that— 
‘‘(I) 
is 
native 
or 
improved 
pastureland with permanent vegeta-
tive cover; or 
‘‘(II) is planted to a crop planted 
specifically for the purpose of pro-
viding grazing for covered livestock. 
‘‘(ii) EXCLUSIONS.—An eligible live-
stock producer may not receive assistance 
under this subsection for grazing losses 
that occur on land used for haying or graz-
ing under the conservation reserve pro-
gram established under subchapter B of 
chapter 1 of subtitle D of title XII of the 
Food Security Act of 1985 (16 U.S.C. 
3831 et seq.). 
‘‘(B) MONTHLY PAYMENT RATE.— 
‘‘(i) IN
GENERAL.—Except as pro-
vided in clause (ii), the payment rate for 
assistance under this paragraph for 1 
month shall, in the case of drought, be 
equal to 60 percent of the lesser of— 
‘‘(I) the monthly feed cost for all 
covered livestock owned or leased by 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01359
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1360 
the eligible livestock producer, as de-
termined under subparagraph (C); or 
‘‘(II) the monthly feed cost cal-
culated by using the normal carrying 
capacity of the eligible grazing land of 
the eligible livestock producer. 
‘‘(ii) PARTIAL
COMPENSATION.—In 
the case of an eligible livestock producer 
that sold or otherwise disposed of covered 
livestock due to drought conditions in 1 or 
both of the 2 production years immediately 
preceding the current production year, as 
determined by the Secretary, the payment 
rate shall be 80 percent of the payment 
rate otherwise calculated in accordance 
with clause (i). 
‘‘(C) MONTHLY FEED COST.— 
‘‘(i) IN GENERAL.—The monthly feed 
cost shall equal the product obtained by 
multiplying— 
‘‘(I) 30 days; 
‘‘(II) a payment quantity that is 
equal to the feed grain equivalent, as 
determined under clause (ii); and 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01360
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1361 
‘‘(III) a payment rate that is 
equal to the corn price per pound, as 
determined under clause (iii). 
‘‘(ii) FEED GRAIN EQUIVALENT.—For 
purposes of clause (i)(I), the feed grain 
equivalent shall equal— 
‘‘(I) in the case of an adult beef 
cow, 15.7 pounds of corn per day; or 
‘‘(II) in the case of any other 
type of weight of livestock, an amount 
determined by the Secretary that rep-
resents the average number of pounds 
of corn per day necessary to feed the 
livestock. 
‘‘(iii) CORN PRICE PER POUND.—For 
purposes of clause (i)(II), the corn price 
per pound shall equal the quotient ob-
tained by dividing— 
‘‘(I) the higher of— 
‘‘(aa) the national average 
corn price per bushel for the 12- 
month period immediately pre-
ceding March 1 of the year for 
which the disaster assistance is 
calculated; or 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01361
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1362 
‘‘(bb) the national average 
corn price per bushel for the 24- 
month period immediately pre-
ceding that March 1; by 
‘‘(II) 56. 
‘‘(D) NORMAL
GRAZING
PERIOD
AND 
DROUGHT MONITOR INTENSITY.— 
‘‘(i) FSA COUNTY
COMMITTEE
DE-
TERMINATIONS.— 
‘‘(I) IN
GENERAL.—The Sec-
retary shall determine the normal car-
rying capacity and normal grazing pe-
riod for each type of grazing land or 
pastureland in the county served by 
the applicable committee. 
‘‘(II) CHANGES.—No change to 
the normal carrying capacity or nor-
mal grazing period established for a 
county under subclause (I) shall be 
made unless the change is requested 
by the appropriate State and county 
Farm Service Agency committees. 
‘‘(ii) DROUGHT INTENSITY.— 
‘‘(I) D2.—An eligible livestock 
producer that owns or leases grazing 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01362
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1363 
land or pastureland that is physically 
located in a county that is rated by 
the U.S. Drought Monitor as having a 
D2 (severe drought) intensity in any 
area of the county for at least 8 con-
secutive weeks during the normal 
grazing period for the county, as de-
termined by the Secretary, shall be el-
igible to receive assistance under this 
paragraph in an amount equal to 1 
monthly payment using the monthly 
payment rate determined under sub-
paragraph (B). 
‘‘(II) D3.—An eligible livestock 
producer that owns or leases grazing 
land or pastureland that is physically 
located in a county that is rated by 
the U.S. Drought Monitor as having 
at least a D3 (extreme drought) in-
tensity in any area of the county at 
any time during the normal grazing 
period for the county, as determined 
by the Secretary, shall be eligible to 
receive assistance under this para-
graph— 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01363
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1364 
‘‘(aa) in an amount equal to 
2 monthly payments using the 
monthly payment rate deter-
mined under subparagraph (B); 
or 
‘‘(bb) if the county is rated 
as 
having 
a 
D3 
(extreme 
drought) intensity in any area of 
the county for at least 4 weeks 
during the normal grazing period 
for the county, or is rated as 
having 
a 
D4 
(exceptional 
drought) intensity in any area of 
the county at any time during 
the normal grazing period, in an 
amount equal to 3 monthly pay-
ments using the monthly pay-
ment rate determined under sub-
paragraph (B). 
‘‘(4) ASSISTANCE FOR LOSSES DUE TO FIRE ON 
PUBLIC MANAGED LAND.— 
‘‘(A) IN
GENERAL.—An eligible livestock 
producer may receive assistance under this 
paragraph only if— 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01364
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1365 
‘‘(i) the grazing losses occur on range-
land that is managed by a Federal agency; 
and 
‘‘(ii) the eligible livestock producer is 
prohibited by the Federal agency from 
grazing the normal permitted livestock on 
the managed rangeland due to a fire. 
‘‘(B) PAYMENT RATE.—The payment rate 
for assistance under this paragraph shall be 
equal to 50 percent of the monthly feed cost for 
the total number of livestock covered by the 
Federal lease of the eligible livestock producer, 
as determined under paragraph (3)(C). 
‘‘(C) PAYMENT DURATION.— 
‘‘(i) IN GENERAL.—Subject to clause 
(ii), an eligible livestock producer shall be 
eligible to receive assistance under this 
paragraph for the period— 
‘‘(I) beginning on the date on 
which the Federal agency excludes the 
eligible livestock producer from using 
the managed rangeland for grazing; 
and 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01365
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1366 
‘‘(II) ending on the last day of 
the Federal lease of the eligible live-
stock producer. 
‘‘(ii) LIMITATION.—An eligible live-
stock producer may only receive assistance 
under this paragraph for losses that occur 
on not more than 180 days per year. 
‘‘(5) MINIMUM RISK MANAGEMENT PURCHASE 
REQUIREMENTS.— 
‘‘(A) IN GENERAL.—Except as otherwise 
provided in this paragraph, a livestock producer 
shall only be eligible for assistance under this 
subsection if the livestock producer— 
‘‘(i) obtained a policy or plan of insur-
ance under subtitle A for the grazing land 
incurring the losses for which assistance is 
being requested; or 
‘‘(ii) filed the required paperwork, and 
paid the administrative fee by the applica-
ble State filing deadline, for the non-
insured crop assistance program for the 
grazing land incurring the losses for which 
assistance is being requested. 
‘‘(B) WAIVER
FOR
SOCIALLY
DISADVAN-
TAGED, LIMITED
RESOURCE, OR
BEGINNING 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01366
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1367 
FARMER OR RANCHER.—In the case of an eligi-
ble livestock producer that is a socially dis-
advantaged farmer or rancher or limited re-
source or beginning farmer or rancher, as de-
termined by the Secretary, the Secretary may— 
‘‘(i) waive subparagraph (A); and 
‘‘(ii) provide disaster assistance under 
this section at a level that the Secretary 
determines to be equitable and appro-
priate. 
‘‘(C) WAIVER FOR 2008 CALENDAR YEAR.— 
In the case of an eligible livestock producer that 
suffered losses on grazing land during the 2008 
calendar year but does not meet the require-
ments of subparagraph (A), the Secretary shall 
waive subparagraph (A) if the eligible livestock 
producer pays a fee in an amount equal to the 
applicable noninsured crop assistance program 
fee or catastrophic risk protection plan fee re-
quired under subparagraph (A) to the Secretary 
not later than 90 days after the date of enact-
ment of this subtitle. 
‘‘(D) EQUITABLE RELIEF.— 
‘‘(i) IN
GENERAL.—The Secretary 
may provide equitable relief to an eligible 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01367
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1368 
livestock producer that is otherwise ineli-
gible or unintentionally fails to meet the 
requirements of subparagraph (A) for the 
grazing land incurring the loss on a case- 
by-case basis, as determined by the Sec-
retary. 
‘‘(ii) 2008 CALENDAR YEAR.—In the 
case of an eligible livestock producer that 
suffered losses on grazing land during the 
2008 calendar year, the Secretary shall 
take special consideration to provide equi-
table relief in cases in which the eligible 
livestock producer failed to meet the re-
quirements of subparagraph (A) due to the 
enactment of this subtitle after the closing 
date of sales periods for crop insurance 
under subtitle A and the noninsured crop 
assistance program. 
‘‘(6) NO DUPLICATIVE PAYMENTS.— 
‘‘(A) IN
GENERAL.—An eligible livestock 
producer may elect to receive assistance for 
grazing or pasture feed losses due to drought 
conditions under paragraph (3) or fire under 
paragraph (4), but not both for the same loss, 
as determined by the Secretary. 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01368
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1369 
‘‘(B) RELATIONSHIP
TO
SUPPLEMENTAL 
REVENUE
ASSISTANCE.—An eligible livestock 
producer that receives assistance under this 
subsection may not also receive assistance for 
losses to crops on the same land with the same 
intended use under subsection (b). 
‘‘(e) EMERGENCY
ASSISTANCE
FOR
LIVESTOCK, 
HONEY BEES, AND FARM-RAISED FISH.— 
‘‘(1) IN GENERAL.—The Secretary shall use up 
to $50,000,000 per year from the Trust Fund to 
provide emergency relief to eligible producers of live-
stock, honey bees, and farm-raised fish to aid in the 
reduction of losses due to disease, adverse weather, 
or other conditions, such as blizzards and wildfires, 
as determined by the Secretary, that are not covered 
under subsection (b), (c), or (d). 
‘‘(2) USE OF FUNDS.—Funds made available 
under this subsection shall be used to reduce losses 
caused by feed or water shortages, disease, or other 
factors as determined by the Secretary. 
‘‘(3) AVAILABILITY
OF
FUNDS.—Any funds 
made available under this subsection shall remain 
available until expended. 
‘‘(f) TREE ASSISTANCE PROGRAM.— 
‘‘(1) DEFINITIONS.—In this subsection: 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01369
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1370 
‘‘(A) ELIGIBLE
ORCHARDIST.—The term 
‘eligible orchardist’ means a person that pro-
duces annual crops from trees for commercial 
purposes. 
‘‘(B) NATURAL DISASTER.—The term ‘nat-
ural disaster’ means plant disease, insect infes-
tation, drought, fire, freeze, flood, earthquake, 
lightning, or other occurrence, as determined by 
the Secretary. 
‘‘(C) NURSERY TREE GROWER.—The term 
‘nursery tree grower’ means a person who pro-
duces nursery, ornamental, fruit, nut, or Christ-
mas trees for commercial sale, as determined by 
the Secretary. 
‘‘(D) TREE.—The term ‘tree’ includes a 
tree, bush, and vine. 
‘‘(2) ELIGIBILITY.— 
‘‘(A) LOSS.—Subject to subparagraph (B), 
the Secretary shall provide assistance— 
‘‘(i) under paragraph (3) to eligible 
orchardists and nursery tree growers that 
planted trees for commercial purposes but 
lost the trees as a result of a natural dis-
aster, as determined by the Secretary; and 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01370
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1371 
‘‘(ii) under paragraph (3)(B) to eligi-
ble orchardists and nursery tree growers 
that have a production history for commer-
cial purposes on planted or existing trees 
but lost the trees as a result of a natural 
disaster, as determined by the Secretary. 
‘‘(B) LIMITATION.—An eligible orchardist 
or nursery tree grower shall qualify for assist-
ance under subparagraph (A) only if the tree 
mortality of the eligible orchardist or nursery 
tree grower, as a result of damaging weather or 
related condition, exceeds 15 percent (adjusted 
for normal mortality). 
‘‘(3) ASSISTANCE.—Subject to paragraph (4), 
the assistance provided by the Secretary to eligible 
orchardists and nursery tree growers for losses de-
scribed in paragraph (2) shall consist of— 
‘‘(A)(i) reimbursement of 70 percent of the 
cost of replanting trees lost due to a natural 
disaster, as determined by the Secretary, in ex-
cess of 15 percent mortality (adjusted for nor-
mal mortality); or 
‘‘(ii) at the option of the Secretary, suffi-
cient seedlings to reestablish a stand; and 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01371
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1372 
‘‘(B) reimbursement of 50 percent of the 
cost of pruning, removal, and other costs in-
curred by an eligible orchardist or nursery tree 
grower to salvage existing trees or, in the case 
of tree mortality, to prepare the land to replant 
trees as a result of damage or tree mortality 
due to a natural disaster, as determined by the 
Secretary, in excess of 15 percent damage or 
mortality (adjusted for normal tree damage and 
mortality). 
‘‘(4) LIMITATIONS ON ASSISTANCE.— 
‘‘(A) DEFINITIONS OF LEGAL ENTITY AND 
PERSON.—In this paragraph, the terms ‘legal 
entity’ and ‘person’ have the meaning given 
those terms in section 1001(a) of the Food Se-
curity Act of 1985 (7 U.S.C. 1308(a) (as 
amended by section 1603 of the Food, Con-
servation, and Energy Act of 2008). 
‘‘(B) AMOUNT.—The total amount of pay-
ments received, directly or indirectly, by a per-
son or legal entity (excluding a joint venture or 
general partnership) under this subsection may 
not exceed $100,000 for any crop year, or an 
equivalent value in tree seedlings. 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01372
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1373 
‘‘(C) ACRES.—The total quantity of acres 
planted to trees or tree seedlings for which a 
person or legal entity shall be entitled to receive 
payments under this subsection may not exceed 
500 acres. 
‘‘(g) RISK
MANAGEMENT
PURCHASE
REQUIRE-
MENT.— 
‘‘(1) IN GENERAL.—Except as otherwise pro-
vided in this section, the eligible producers on a 
farm shall not be eligible for assistance under this 
section (other than subsection (c)) if the eligible pro-
ducers on the farm— 
‘‘(A) in the case of each insurable com-
modity of the eligible producers on the farm, 
did not obtain a policy or plan of insurance 
under subtitle A (excluding a crop insurance 
pilot program under that subtitle); or 
‘‘(B) in the case of each noninsurable com-
modity of the eligible producers on the farm, 
did not file the required paperwork, and pay the 
administrative fee by the applicable State filing 
deadline, for the noninsured crop assistance 
program. 
‘‘(2) MINIMUM.—To be considered to have ob-
tained insurance under paragraph (1)(A), an eligible 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01373
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1374 
producer on a farm shall have obtained a policy or 
plan of insurance with not less than 50 percent yield 
coverage at 55 percent of the insurable price for 
each crop grazed, planted, or intended to be planted 
for harvest on a whole farm. 
‘‘(3) WAIVER FOR SOCIALLY DISADVANTAGED, 
LIMITED
RESOURCE, OR
BEGINNING
FARMER
OR 
RANCHER.—With respect to eligible producers that 
are socially disadvantaged farmers or ranchers or 
limited resource or beginning farmers or ranchers, 
as determined by the Secretary, the Secretary 
may— 
‘‘(A) waive paragraph (1); and 
‘‘(B) provide disaster assistance under this 
section at a level that the Secretary determines 
to be equitable and appropriate. 
‘‘(4) WAIVER
FOR
2008
CROP
YEAR.—In the 
case of an eligible producer that suffered losses in 
an insurable commodity or noninsurable commodity 
during the 2008 crop year but does not meet the re-
quirements of paragraph (1), the Secretary shall 
waive paragraph (1) if the eligible producer pays a 
fee in an amount equal to the applicable noninsured 
crop assistance program fee or catastrophic risk pro-
tection plan fee required under paragraph (1) to the 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01374
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1375 
Secretary not later than 90 days after the date of 
enactment of this subtitle. 
‘‘(5) EQUITABLE RELIEF.— 
‘‘(A) IN
GENERAL.—The Secretary may 
provide equitable relief to eligible producers on 
a farm that are otherwise ineligible or uninten-
tionally fail to meet the requirements of para-
graph (1) for 1 or more crops on a farm on a 
case-by-case basis, as determined by the Sec-
retary. 
‘‘(B) 2008 CROP YEAR.—In the case of eli-
gible producers on a farm that suffered losses 
in an insurable commodity or noninsurable com-
modity during the 2008 crop year, the Sec-
retary shall take special consideration to pro-
vide equitable relief in cases in which the eligi-
ble producers failed to meet the requirements of 
paragraph (1) due to the enactment of this sub-
title after the closing date of sales periods for 
crop insurance under subtitle A and the non-
insured crop assistance program. 
‘‘(h) PAYMENT LIMITATIONS.— 
‘‘(1) DEFINITIONS OF LEGAL ENTITY AND PER-
SON.—In this subsection, the terms ‘legal entity’ and 
‘person’ have the meaning given those terms in sec-
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01375
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1376 
tion 1001(a) of the Food Security Act of 1985 (7 
U.S.C. 1308(a) (as amended by section 1603 of the 
Food, Conservation, and Energy Act of 2008). 
‘‘(2) AMOUNT.—The total amount of disaster 
assistance payments received, directly or indirectly, 
by a person or legal entity (excluding a joint venture 
or general partnership) under this section (excluding 
payments received under subsection (f)) may not ex-
ceed $100,000 for any crop year. 
‘‘(3) AGI LIMITATION.—Section 1001D of the 
Food Security Act of 1985 (7 U.S.C. 1308–3a) or 
any successor provision shall apply with respect to 
assistance provided under this section. 
‘‘(4) DIRECT
ATTRIBUTION.—Subsections (e) 
and (f) of section 1001 of the Food Security Act of 
1985 (7 U.S.C. 1308) or any successor provisions 
relating to direct attribution shall apply with respect 
to assistance provided under this section. 
‘‘(i) PERIOD OF EFFECTIVENESS.—This section shall 
be effective only for losses that are incurred as the result 
of a disaster, adverse weather, or other environmental con-
dition that occurs on or before September 30, 2011, as 
determined by the Secretary. 
‘‘(j) NO DUPLICATIVE PAYMENTS.—In implementing 
any other program which makes disaster assistance pay-
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01376
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1377 
ments (except for indemnities made under subtitle A and 
section 196 of the Federal Agriculture Improvement and 
Reform Act of 1996), the Secretary shall prevent duplica-
tive payments with respect to the same loss for which a 
person receives a payment under subsections (b), (c), (d), 
(e), or (f). 
‘‘(k) APPLICATION.— 
‘‘(1) IN GENERAL.—Subject to paragraph (2) 
and notwithstanding any provision of subtitle A, 
subtitle A shall not apply to this subtitle. 
‘‘(2) CROSS REFERENCES.—Paragraph (1) shall 
not apply to a specific reference in this subtitle to 
a provision of subtitle A.’’. 
(b) TRANSITION.—For purposes of the 2008 crop 
year, the Secretary shall carry out subsections (f)(4) and 
(h) of section 531 of the Federal Crop Insurance Act (as 
added by subsection (a)) in accordance with the terms and 
conditions of sections 1001 through 1001D of the Food 
Security Act of 1985 (16 U.S.C. 1308 et seq.), as in effect 
on September 30, 2007. 
(c) CONFORMING AMENDMENTS.— 
(1) Section 501 of the Federal Crop Insurance 
Act (7 U.S.C. 1501) is amended by striking the sec-
tion heading and enumerator and inserting the fol-
lowing: 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01377
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1378 
‘‘Subtitle A—Federal Crop 
Insurance Act 
‘‘SEC. 501. SHORT TITLE AND APPLICATION OF OTHER PRO-
VISIONS.’’. 
(2) Subtitle A of the Federal Crop Insurance 
Act (as designated under paragraph (1)) is amend-
ed— 
(A) by striking ‘‘This title’’ each place it 
appears and inserting ‘‘This subtitle’’; and 
(B) by striking ‘‘this title’’ each place it 
appears and inserting ‘‘this subtitle’’. 
SEC. 12034. FISHERIES DISASTER ASSISTANCE. 
Of the funds of the Commodity Credit Corporation, 
the Secretary of Agriculture shall transfer to the Secretary 
of Commerce $170,000,000 for fiscal year 2008 for the 
National Marine Fisheries Service to distribute to com-
mercial and recreational members of the fishing commu-
nities affected by the salmon fishery failure in the States 
of California, Oregon, and Washington designated under 
section 312(a) of the Magnuson-Stevens Fishery Con-
servation and Management Act (16 U.S.C. 1861a(a)) on 
May 1, 2008, in accordance with that section. 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01378
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1379 
Subtitle B—Small Business 
Disaster Loan Program 
SEC. 12051. SHORT TITLE. 
This subtitle may be cited as the ‘‘Small Business 
Disaster Response and Loan Improvements Act of 2008’’. 
SEC. 12052. DEFINITIONS. 
In this subtitle— 
(1) the terms ‘‘Administration’’ and ‘‘Adminis-
trator’’ mean the Small Business Administration 
and the Administrator thereof, respectively; 
(2) the term ‘‘disaster area’’ means an area af-
fected by a natural or other disaster, as determined 
for purposes of paragraph (1) or (2) of section 7(b) 
of the Small Business Act (15 U.S.C. 636(b)), dur-
ing the period of such declaration; 
(3) the term ‘‘disaster loan program of the Ad-
ministration’’ means assistance under section 7(b) of 
the Small Business Act (15 U.S.C. 636(b)), as 
amended by this Act; 
(4) the term ‘‘disaster update period’’ means 
the period beginning on the date on which the Presi-
dent declares a major disaster (including any major 
disaster relating to which the Administrator declares 
eligibility for additional disaster assistance under 
paragraph (9) of section 7(b) of the Small Business 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01379
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1380 
Act (15 U.S.C. 636(b)), as added by this Act) and 
ending on the date on which such declaration termi-
nates; 
(5) the term ‘‘major disaster’’ has the meaning 
given that term in section 102 of the Robert T. 
Stafford Disaster Relief and Emergency Assistance 
Act (42 U.S.C. 5122); 
(6) the term ‘‘small business concern’’ has the 
meaning given that term under section 3 of the 
Small Business Act (15 U.S.C. 632); and 
(7) the term ‘‘State’’ means any State of the 
United States, the District of Columbia, the Com-
monwealth of Puerto Rico, the Northern Mariana Is-
lands, the Virgin Islands, Guam, American Samoa, 
and any territory or possession of the United States. 
PART I—DISASTER PLANNING AND RESPONSE 
SEC. 12061. ECONOMIC INJURY DISASTER LOANS TO NON-
PROFITS. 
(a) IN GENERAL.—Section 7(b)(2) of the Small Busi-
ness Act (15 U.S.C. 636(b)(2)) is amended— 
(1) in the matter preceding subparagraph (A)— 
(A) by inserting after ‘‘small business con-
cern’’ the following: ‘‘, private nonprofit organi-
zation,’’; and 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01380
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1381 
(B) by inserting after ‘‘the concern’’ the 
following: ‘‘, the organization,’’; and 
(2) in subparagraph (D) by inserting after 
‘‘small business concerns’’ the following: ‘‘, private 
nonprofit organizations,’’. 
(b) CONFORMING AMENDMENT.—Section 7(c)(5)(C) 
of the Small Business Act (15 U.S.C. 636(c)(5)(C)) is 
amended by inserting after ‘‘business’’ the following: ‘‘, 
private nonprofit organization,’’. 
SEC. 12062. COORDINATION OF DISASTER ASSISTANCE PRO-
GRAMS WITH FEMA. 
The Small Business Act (15 U.S.C. 631 et seq.) is 
amended— 
(1) by redesignating section 37 as section 44; 
and 
(2) by inserting after section 36 the following: 
‘‘SEC. 37. COORDINATION OF DISASTER ASSISTANCE PRO-
GRAMS WITH FEMA. 
‘‘(a) COORDINATION REQUIRED.—The Administrator 
shall ensure that the disaster assistance programs of the 
Administration are coordinated, to the maximum extent 
practicable, with the disaster assistance programs of the 
Federal Emergency Management Agency. 
‘‘(b) REGULATIONS REQUIRED.—The Administrator, 
in consultation with the Administrator of the Federal 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01381
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1382 
Emergency Management Agency, shall establish regula-
tions to ensure that each application for disaster assist-
ance is submitted as quickly as practicable to the Adminis-
tration or directed to the appropriate agency under the 
circumstances. 
‘‘(c) COMPLETION; REVISION.—The initial regula-
tions shall be completed not later than 270 days after the 
date of the enactment of the Small Business Disaster Re-
sponse and Loan Improvements Act of 2008. Thereafter, 
the regulations shall be revised on an annual basis. 
‘‘(d) REPORT.—The Administrator shall include a re-
port on the regulations whenever the Administration sub-
mits the report required by section 43.’’. 
SEC. 12063. PUBLIC AWARENESS OF DISASTER DECLARA-
TION AND APPLICATION PERIODS. 
(a) IN GENERAL.—Section 7(b) of the Small Busi-
ness Act (15 U.S.C. 636(b)) is amended by inserting im-
mediately after paragraph (3), the following: 
‘‘(4) COORDINATION WITH FEMA.— 
‘‘(A) IN GENERAL.—Notwithstanding any 
other provision of law, for any disaster declared 
under this subsection or major disaster (includ-
ing any major disaster relating to which the 
Administrator declares eligibility for additional 
disaster assistance under paragraph (9)), the 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01382
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1383 
Administrator, in consultation with the Admin-
istrator of the Federal Emergency Management 
Agency, shall ensure, to the maximum extent 
practicable, that all application periods for dis-
aster relief under this Act correspond with ap-
plication deadlines established under the Robert 
T. Stafford Disaster Relief and Emergency As-
sistance Act (42 U.S.C. 5121 et seq.), or as ex-
tended by the President. 
‘‘(B) DEADLINES.—Notwithstanding any 
other provision of law, not later than 10 days 
before the closing date of an application period 
for a major disaster (including any major dis-
aster relating to which the Administrator de-
clares eligibility for additional disaster assist-
ance under paragraph (9)), the Administrator, 
in consultation with the Administrator of the 
Federal Emergency Management Agency, shall 
submit to the Committee on Small Business 
and Entrepreneurship of the Senate and the 
Committee on Small Business of the House of 
Representatives a report that includes— 
‘‘(i) the deadline for submitting appli-
cations for assistance under this Act relat-
ing to that major disaster; 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01383
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1384 
‘‘(ii) information regarding the num-
ber of loan applications and disbursements 
processed by the Administrator relating to 
that major disaster for each day during the 
period beginning on the date on which that 
major disaster was declared and ending on 
the date of that report; and 
‘‘(iii) an estimate of the number of 
potential applicants that have not sub-
mitted an application relating to that 
major disaster. 
‘‘(5) PUBLIC AWARENESS OF DISASTERS.—If a 
disaster is declared under this subsection or the Ad-
ministrator declares eligibility for additional disaster 
assistance under paragraph (9), the Administrator 
shall make every effort to communicate through 
radio, television, print, and web-based outlets, all 
relevant information needed by disaster loan appli-
cants, including— 
‘‘(A) the date of such declaration; 
‘‘(B) cities and towns within the area of 
such declaration; 
‘‘(C) loan application deadlines related to 
such disaster; 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01384
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1385 
‘‘(D) all relevant contact information for 
victim services available through the Adminis-
tration (including links to small business devel-
opment center websites); 
‘‘(E) links to relevant Federal and State 
disaster assistance websites, including links to 
websites providing information regarding assist-
ance available from the Federal Emergency 
Management Agency; 
‘‘(F) information on eligibility criteria for 
Administration loan programs, including where 
such applications can be found; and 
‘‘(G) application materials that clearly 
state the function of the Administration as the 
Federal source of disaster loans for homeowners 
and renters.’’. 
(b) MARKETING AND OUTREACH.—Not later than 90 
days after the date of enactment of this Act, the Adminis-
trator shall create a marketing and outreach plan that— 
(1) encourages a proactive approach to the dis-
aster relief efforts of the Administration; 
(2) makes clear the services provided by the Ad-
ministration, including contact information, applica-
tion information, and timelines for submitting appli-
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01385
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1386 
cations, the review of applications, and the disburse-
ment of funds; 
(3) describes the different disaster loan pro-
grams of the Administration, including how they are 
made available and the eligibility requirements for 
each loan program; 
(4) provides for regional marketing, focusing on 
disasters occurring in each region before the date of 
enactment of this Act, and likely scenarios for disas-
ters in each such region; and 
(5) ensures that the marketing plan is made 
available at small business development centers and 
on the website of the Administration. 
(c) TECHNICAL AND CONFORMING AMENDMENTS.— 
(1) IN GENERAL.—Section 3 of the Small Busi-
ness Act (15 U.S.C. 632) is amended by adding at 
the end the following: 
‘‘(s) MAJOR DISASTER.—In this Act, the term ‘major 
disaster’ has the meaning given that term in section 102 
of the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5122).’’. 
(2) TECHNICAL CORRECTION.—Section 7(b)(2) 
of the Small Business Act (15 U.S.C. 636(b)(2)) is 
amended by striking ‘‘Disaster Relief and Emer-
gency Assistance Act’’ and inserting ‘‘Robert T. 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01386
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1387 
Stafford Disaster Relief and Emergency Assistance 
Act (42 U.S.C. 5121 et seq.)’’. 
SEC. 12064. CONSISTENCY BETWEEN ADMINISTRATION 
REGULATIONS AND STANDARD OPERATING 
PROCEDURES. 
(a) IN GENERAL.—The Administrator shall, prompt-
ly following the date of enactment of this Act, conduct 
a study of whether the standard operating procedures of 
the Administration for loans offered under section 7(b) of 
the Small Business Act (15 U.S.C. 636(b)) are consistent 
with the regulations of the Administration for admin-
istering the disaster loan program. 
(b) REPORT.—Not later than 180 days after the date 
of enactment of this Act, the Administrator shall submit 
to Congress a report containing all findings and rec-
ommendations of the study conducted under subsection 
(a). 
SEC. 12065. INCREASING COLLATERAL REQUIREMENTS. 
Section 7(c)(6) of the Small Business Act (15 U.S.C. 
636(c)(6)) is amended by striking ‘‘$10,000 or less’’ and 
inserting ‘‘$14,000 or less (or such higher amount as the 
Administrator determines appropriate in the event of a 
major disaster)’’. 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01387
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1388 
SEC. 12066. PROCESSING DISASTER LOANS. 
(a) AUTHORITY FOR QUALIFIED PRIVATE CONTRAC-
TORS TO PROCESS DISASTER LOANS.—Section 7(b) of the 
Small Business Act (15 U.S.C. 636(b)) is amended by in-
serting immediately after paragraph (5), as added by this 
Act, the following: 
‘‘(6) AUTHORITY FOR QUALIFIED PRIVATE CON-
TRACTORS.— 
‘‘(A) DISASTER LOAN PROCESSING.—The 
Administrator may enter into an agreement 
with a qualified private contractor, as deter-
mined by the Administrator, to process loans 
under this subsection in the event of a major 
disaster (including any major disaster relating 
to which the Administrator declares eligibility 
for additional disaster assistance under para-
graph (9)), under which the Administrator shall 
pay the contractor a fee for each loan proc-
essed. 
‘‘(B) LOAN
LOSS
VERIFICATION
SERV-
ICES.—The Administrator may enter into an 
agreement with a qualified lender or loss 
verification professional, as determined by the 
Administrator, to verify losses for loans under 
this subsection in the event of a major disaster 
(including any major disaster relating to which 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01388
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1389 
the Administrator declares eligibility for addi-
tional disaster assistance under paragraph (9)), 
under which the Administrator shall pay the 
lender or verification professional a fee for each 
loan for which such lender or verification pro-
fessional verifies losses.’’. 
(b) COORDINATION OF EFFORTS BETWEEN THE AD-
MINISTRATOR AND THE INTERNAL REVENUE SERVICE TO 
EXPEDITE LOAN PROCESSING.—The Administrator and 
the Commissioner of Internal Revenue shall, to the max-
imum extent practicable, ensure that all relevant and al-
lowable tax records for loan approval are shared with loan 
processors in an expedited manner, upon request by the 
Administrator. 
SEC. 12067. INFORMATION TRACKING AND FOLLOW-UP SYS-
TEM. 
The Small Business Act is amended by inserting after 
section 37, as added by this Act, the following: 
‘‘SEC. 38. INFORMATION TRACKING AND FOLLOW-UP SYS-
TEM FOR DISASTER ASSISTANCE. 
‘‘(a) SYSTEM REQUIRED.—The Administrator shall 
develop, implement, or maintain a centralized information 
system to track communications between personnel of the 
Administration and applicants for disaster assistance. The 
system shall ensure that whenever an applicant for dis-
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01389
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1390 
aster assistance communicates with such personnel on a 
matter relating to the application, the following informa-
tion is recorded: 
‘‘(1) The method of communication. 
‘‘(2) The date of communication. 
‘‘(3) The identity of the personnel. 
‘‘(4) A summary of the subject matter of the 
communication. 
‘‘(b) FOLLOW-UP REQUIRED.—The Administrator 
shall ensure that an applicant for disaster assistance re-
ceives, by telephone, mail, or electronic mail, follow-up 
communications from the Administration at all critical 
stages of the application process, including the following: 
‘‘(1) When the Administration determines that 
additional information or documentation is required 
to process the application. 
‘‘(2) When the Administration determines 
whether to approve or deny the loan. 
‘‘(3) When the primary contact person man-
aging the loan application has changed.’’. 
SEC. 12068. INCREASED DEFERMENT PERIOD. 
(a) IN GENERAL.—Section 7 of the Small Business 
Act (15 U.S.C. 636) is amended— 
(1) by redesignating subsections (c) and (d) as 
subsections (d) and (e), respectively; and 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01390
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1391 
(2) by inserting after subsection (e), as so re-
designated, the following: 
‘‘(f) 
ADDITIONAL
REQUIREMENTS
FOR
7(b) 
LOANS.— 
‘‘(1) INCREASED DEFERMENT AUTHORIZED.— 
‘‘(A) IN
GENERAL.—In making loans 
under subsection (b), the Administrator may 
provide, to the person receiving the loan, an op-
tion to defer repayment on the loan. 
‘‘(B) PERIOD.—The period of a deferment 
under subparagraph (A) may not exceed 4 
years.’’. 
(b) TECHNICAL AND CONFORMING AMENDMENTS.— 
The Small Business Act (15 U.S.C. 631 et seq.) is amend-
ed— 
(1) in section 4(c)— 
(A) in paragraph (1), by striking ‘‘7(c)(2)’’ 
and inserting ‘‘7(d)(2)’’; and 
(B) in paragraph (2)— 
(i) by striking ‘‘7(c)(2)’’ and inserting 
‘‘7(d)(2)’’; and 
(ii) by striking ‘‘7(e),’’; and 
(2) in section 7(b), in the undesignated matter 
following paragraph (3)— 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01391
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1392 
(A) by striking ‘‘That the provisions of 
paragraph (1) of subsection (c)’’ and inserting 
‘‘That the provisions of paragraph (1) of sub-
section (d)’’; and 
(B) by striking ‘‘Notwithstanding the pro-
visions of any other law the interest rate on the 
Administration’s share of any loan made under 
subsection (b) except as provided in subsection 
(c),’’ and inserting ‘‘Notwithstanding any other 
provision of law, and except as provided in sub-
section (d), the interest rate on the Administra-
tion’s share of any loan made under subsection 
(b)’’. 
SEC. 12069. DISASTER PROCESSING REDUNDANCY. 
The Small Business Act (15 U.S.C. 631 et seq.) is 
amended by inserting after section 38, as added by this 
Act, the following: 
‘‘SEC. 39. DISASTER PROCESSING REDUNDANCY. 
‘‘(a) IN GENERAL.—The Administrator shall ensure 
that the Administration has in place a facility for disaster 
loan processing that, whenever the Administration’s pri-
mary facility for disaster loan processing becomes unavail-
able, is able to take over all disaster loan processing from 
that primary facility within 2 days. 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01392
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1393 
‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated such sums as may be 
necessary to carry out this section.’’. 
SEC. 12070. NET EARNINGS CLAUSES PROHIBITED. 
Section 7 of the Small Business Act (15 U.S.C. 636) 
is amended by inserting after subsection (f), as added by 
this Act, the following: 
‘‘(g) NET EARNINGS CLAUSES PROHIBITED FOR 7(b) 
LOANS.—In making loans under subsection (b), the Ad-
ministrator shall not require the borrower to pay any non- 
amortized amount for the first five years after repayment 
begins.’’. 
SEC. 12071. ECONOMIC INJURY DISASTER LOANS IN CASES 
OF ICE STORMS AND BLIZZARDS. 
Section 3(k)(2) of the Small Business Act (15 U.S.C. 
632(k)(2)) is amended— 
(1) in subparagraph (A) by striking ‘‘and’’; 
(2) in subparagraph (B) by striking the period 
at the end and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(C) ice storms and blizzards.’’. 
SEC. 12072. DEVELOPMENT AND IMPLEMENTATION OF 
MAJOR DISASTER RESPONSE PLAN. 
(a) IN GENERAL.—Not later than 3 months after the 
date of enactment of this Act, the Administrator shall— 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01393
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1394 
(1) by rule, amend the 2006 Atlantic hurricane 
season disaster response plan of the Administration 
(in this section referred to as the ‘‘disaster response 
plan’’) to apply to major disasters; and 
(2) submit a report to the Committee on Small 
Business and Entrepreneurship of the Senate and 
the Committee on Small Business of the House of 
Representatives detailing the amendments to the dis-
aster response plan. 
(b) CONTENTS.—The report required under sub-
section (a)(2) shall include— 
(1) any updates or modifications made to the 
disaster response plan since the report regarding the 
disaster response plan submitted to Congress on 
July 14, 2006; 
(2) a description of how the Administrator 
plans to use and integrate District Office personnel 
of the Administration in the response to a major dis-
aster, including information on the use of personnel 
for loan processing and loan disbursement; 
(3) a description of the disaster scalability 
model of the Administration and on what basis or 
function the plan is scaled; 
(4) a description of how the agency-wide Dis-
aster Oversight Council is structured, which offices 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01394
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1395 
comprise its membership, and whether the Associate 
Deputy Administrator for Entrepreneurial Develop-
ment of the Administration is a member; 
(5) a description of how the Administrator 
plans to coordinate the disaster efforts of the Ad-
ministration with State and local government offi-
cials, including recommendations on how to better 
incorporate State initiatives or programs, such as 
State-administered bridge loan programs, into the 
disaster response of the Administration; 
(6) recommendations, if any, on how the Ad-
ministration can better coordinate its disaster re-
sponse operations with the operations of other Fed-
eral, State, and local entities; 
(7) any surge plan for the disaster loan pro-
gram of the Administration in effect on or after Au-
gust 29, 2005 (including surge plans for loss 
verification, loan processing, mailroom, customer 
service or call center operations, and a continuity of 
operations plan); 
(8) the number of full-time equivalent employ-
ees and job descriptions for the planning and dis-
aster response staff of the Administration; 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01395
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1396 
(9) the in-service and preservice training proce-
dures for disaster response staff of the Administra-
tion; 
(10) information on the logistical support plans 
of the Administration (including equipment and 
staffing needs, and detailed information on how such 
plans will be scalable depending on the size and 
scope of the major disaster; 
(11) a description of the findings and rec-
ommendations of the Administrator, if any, based on 
a review of the response of the Administration to 
Hurricane Katrina of 2005, Hurricane Rita of 2005, 
and Hurricane Wilma of 2005; and 
(12) a plan for how the Administrator, in con-
sultation with the Administrator of the Federal 
Emergency Management Agency, will coordinate the 
provision of accommodations and necessary re-
sources for disaster assistance personnel to effec-
tively perform their responsibilities in the aftermath 
of a major disaster. 
(c) BIENNIAL DISASTER SIMULATION EXERCISE.— 
(1) EXERCISE REQUIRED.—The Administrator 
shall conduct a disaster simulation exercise at least 
once every 2 fiscal years. The exercise shall include 
the participation of, at a minimum, not less than 50 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01396
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1397 
percent of the individuals in the disaster reserve 
corps and shall test, at maximum capacity, all of the 
information technology and telecommunications sys-
tems of the Administration that are vital to the ac-
tivities of the Administration during such a disaster. 
(2) REPORT.—The Administrator shall include 
a report on the disaster simulation exercises con-
ducted under paragraph (1) each time the Adminis-
tration submits a report required under section 43 
of the Small Business Act, as added by this Act. 
SEC. 12073. DISASTER PLANNING RESPONSIBILITIES. 
(a) ASSIGNMENT OF SMALL BUSINESS ADMINISTRA-
TION DISASTER PLANNING RESPONSIBILITIES.—The dis-
aster planning function of the Administration shall be as-
signed to an individual appointed by the Administrator 
who— 
(1) is not an employee of the Office of Disaster 
Assistance of the Administration; 
(2) has proven management ability; 
(3) has substantial knowledge in the field of 
disaster readiness and emergency response; and 
(4) has demonstrated significant experience in 
the area of disaster planning. 
(b) RESPONSIBILITIES.—The individual assigned the 
disaster planning function of the Administration shall re-
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01397
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1398 
port directly and solely to the Administrator and shall be 
responsible for— 
(1) creating, maintaining, and implementing the 
comprehensive disaster response plan of the Admin-
istration described in section 12072; 
(2) ensuring there are in-service and pre-service 
training procedures for the disaster response staff of 
the Administration; 
(3) coordinating and directing the training exer-
cises of the Administration relating to disasters, in-
cluding disaster simulation exercises and disaster ex-
ercises coordinated with other government depart-
ments and agencies; and 
(4) other responsibilities relevant to disaster 
planning and readiness, as determined by the Ad-
ministrator. 
(c) COORDINATION.—In carrying out the responsibil-
ities described in subsection (b), the individual assigned 
the disaster planning function of the Administration shall 
coordinate with— 
(1) the Office of Disaster Assistance of the Ad-
ministration; 
(2) the Administrator of the Federal Emer-
gency Management Agency; and 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01398
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1399 
(3) other Federal, State, and local disaster 
planning offices, as necessary. 
(d) RESOURCES.—The Administrator shall ensure 
that the individual assigned the disaster planning function 
of the Administration has adequate resources to carry out 
the duties under this section. 
(e) REPORT.—Not later than 30 days after the date 
of enactment of this Act, the Administrator shall submit 
to the Committee on Small Business and Entrepreneur-
ship of the Senate and the Committee on Small Business 
of the House of Representatives a report containing— 
(1) a description of the actions of the Adminis-
trator to assign an individual the disaster planning 
function of the Administration; 
(2) information detailing the background and 
expertise of the individual assigned; and 
(3) information on the status of the implemen-
tation of the responsibilities described in subsection 
(b). 
SEC. 12074. ASSIGNMENT OF EMPLOYEES OF THE OFFICE 
OF DISASTER ASSISTANCE AND DISASTER 
CADRE. 
(a) IN GENERAL.—Section 7(b) of the Small Busi-
ness Act (15 U.S.C. 636(b)) is amended by inserting im-
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01399
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1400 
mediately after paragraph (6), as added by this Act, the 
following: 
‘‘(7) DISASTER ASSISTANCE EMPLOYEES.— 
‘‘(A) IN GENERAL.—In carrying out this 
section, the Administrator may, where prac-
ticable, ensure that the number of full-time 
equivalent employees— 
‘‘(i) in the Office of the Disaster As-
sistance is not fewer than 800; and 
‘‘(ii) in the Disaster Cadre of the Ad-
ministration is not fewer than 1,000. 
‘‘(B) REPORT.—In carrying out this sub-
section, if the number of full-time employees for 
either the Office of Disaster Assistance or the 
Disaster Cadre of the Administration is below 
the level described in subparagraph (A) for that 
office, not later than 21 days after the date on 
which that staffing level decreased below the 
level described in subparagraph (A), the Admin-
istrator shall submit to the Committee on Ap-
propriations and the Committee on Small Busi-
ness and Entrepreneurship of the Senate and 
the Committee on Appropriations and Com-
mittee on Small Business of the House of Rep-
resentatives, a report— 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01400
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1401 
‘‘(i) detailing staffing levels on that 
date; 
‘‘(ii) requesting, if practicable and de-
termined appropriate by the Administrator, 
additional funds for additional employees; 
and 
‘‘(iii) containing such additional infor-
mation, as determined appropriate by the 
Administrator.’’. 
SEC. 12075. COMPREHENSIVE DISASTER RESPONSE PLAN. 
The Small Business Act (15 U.S.C. 631 et seq.) is 
amended inserting after section 39, as added by this Act, 
the following: 
‘‘SEC. 40. COMPREHENSIVE DISASTER RESPONSE PLAN. 
‘‘(a) PLAN REQUIRED.—The Administrator shall de-
velop, implement, or maintain a comprehensive written 
disaster response plan. The plan shall include the fol-
lowing: 
‘‘(1) For each region of the Administration, a 
description of the disasters most likely to occur in 
that region. 
‘‘(2) For each disaster described under para-
graph (1)— 
‘‘(A) an assessment of the disaster; 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01401
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1402 
‘‘(B) an assessment of the demand for Ad-
ministration assistance most likely to occur in 
response to the disaster; 
‘‘(C) an assessment of the needs of the Ad-
ministration, with respect to such resources as 
information 
technology, 
telecommunications, 
human resources, and office space, to meet the 
demand referred to in subparagraph (B); and 
‘‘(D) guidelines pursuant to which the Ad-
ministration will coordinate with other Federal 
agencies and with State and local authorities to 
best respond to the demand referred to in sub-
paragraph (B) and to best use the resources re-
ferred to in that subparagraph. 
‘‘(b) COMPLETION; REVISION.—The first plan re-
quired by subsection (a) shall be completed not later than 
180 days after the date of the enactment of this section. 
Thereafter, the Administrator shall update the plan on an 
annual basis and following any major disaster relating to 
which the Administrator declares eligibility for additional 
disaster assistance under section 7(b)(9). 
‘‘(c) KNOWLEDGE REQUIRED.—The Administrator 
shall carry out subsections (a) and (b) through an indi-
vidual with substantial knowledge in the field of disaster 
readiness and emergency response. 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01402
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1403 
‘‘(d) REPORT.—The Administrator shall include a re-
port on the plan whenever the Administration submits the 
report required by section 43.’’. 
SEC. 12076. PLANS TO SECURE SUFFICIENT OFFICE SPACE. 
The Small Business Act is amended by inserting after 
section 40, as added by this Act, the following: 
‘‘SEC. 41. PLANS TO SECURE SUFFICIENT OFFICE SPACE. 
‘‘(a) PLANS REQUIRED.—The Administrator shall 
develop long-term plans to secure sufficient office space 
to accommodate an expanded workforce in times of dis-
aster. 
‘‘(b) REPORT.—The Administrator shall include a re-
port on the plans developed under subsection (a) each time 
the Administration submits a report required under sec-
tion 43.’’. 
SEC. 12077. APPLICANTS THAT HAVE BECOME A MAJOR 
SOURCE OF EMPLOYMENT DUE TO CHANGED 
ECONOMIC CIRCUMSTANCES. 
Section 7(b)(3)(E) of the Small Business Act (15 
U.S.C. 636(b)(3)(E)) is amended by inserting after ‘‘con-
stitutes’’ the following: ‘‘, or have become due to changed 
economic circumstances,’’. 
SEC. 12078. DISASTER LOAN AMOUNTS. 
(a) INCREASED LOAN CAPS.—Section 7(b) of the 
Small Business Act (15 U.S.C. 636(b)) is amended by in-
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01403
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1404 
serting immediately after paragraph (7), as added by this 
Act, the following: 
‘‘(8) INCREASED LOAN CAPS.— 
‘‘(A) AGGREGATE
LOAN
AMOUNTS.—Ex-
cept as provided in subparagraph (B), and not-
withstanding any other provision of law, the ag-
gregate loan amount outstanding and com-
mitted to a borrower under this subsection may 
not exceed $2,000,000. 
‘‘(B) WAIVER AUTHORITY.—The Adminis-
trator may, at the discretion of the Adminis-
trator, increase the aggregate loan amount 
under subparagraph (A) for loans relating to a 
disaster to a level established by the Adminis-
trator, based on appropriate economic indica-
tors for the region in which that disaster oc-
curred.’’. 
(b) DISASTER MITIGATION.— 
(1) IN
GENERAL.—Section 7(b)(1)(A) of the 
Small Business Act (15 U.S.C. 636(b)(1)(A)) is 
amended by inserting ‘‘of the aggregate costs of 
such damage or destruction (whether or not com-
pensated for by insurance or otherwise)’’ after ‘‘20 
per centum’’. 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01404
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1405 
(2) EFFECTIVE DATE.—The amendment made 
by paragraph (1) shall apply with respect to a loan 
or guarantee made after the date of enactment of 
this Act. 
(c) TECHNICAL AMENDMENTS.—Section 7(b) of the 
Small Business Act (15 U.S.C. 636(b)) is amended— 
(1) in the matter preceding paragraph (1), by 
striking ‘‘the, Administration’’ and inserting ‘‘the 
Administration’’; and 
(2) in the undesignated matter at the end— 
(A) by striking ‘‘, (2), and (4)’’ and insert-
ing ‘‘and (2)’’; and 
(B) by striking ‘‘, (2), or (4)’’ and insert-
ing ‘‘(2)’’. 
SEC. 12079. SMALL BUSINESS BONDING THRESHOLD. 
(a) IN GENERAL.—Except as provided in subsection 
(b), and notwithstanding any other provision of law, for 
any procurement related to a major disaster, the Adminis-
trator may, upon such terms and conditions as the Admin-
istrator may prescribe, guarantee and enter into commit-
ments to guarantee any surety against loss resulting from 
a breach of the terms of a bid bond, payment bond, per-
formance bond, or bonds ancillary thereto, by a principal 
on any total work order or contract amount at the time 
of bond execution that does not exceed $5,000,000. 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01405
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1406 
(b) INCREASE OF AMOUNT.—Upon request of the 
head of any Federal agency other than the Administration 
involved in reconstruction efforts in response to a major 
disaster, the Administrator may guarantee and enter into 
a commitment to guarantee any security against loss 
under subsection (a) on any total work order or contract 
amount at the time of bond execution that does not exceed 
$10,000,000. 
(c) LIMITATION ON USE OF OTHER FUNDS.—The 
Administrator may carry out this section only with 
amounts appropriated in advance specifically to carry out 
this section. 
PART II—DISASTER LENDING 
SEC. 12081. ELIGIBILITY FOR ADDITIONAL DISASTER AS-
SISTANCE. 
Section 7(b) of the Small Business Act (15 U.S.C. 
636(b)) is amended by inserting immediately after para-
graph (8), as added by this Act, the following: 
‘‘(9) DECLARATION OF ELIGIBILITY FOR ADDI-
TIONAL DISASTER ASSISTANCE.— 
‘‘(A) IN GENERAL.—If the President de-
clares a major disaster, the Administrator may 
declare eligibility for additional disaster assist-
ance in accordance with this paragraph. 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01406
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1407 
‘‘(B) THRESHOLD.—A major disaster for 
which the Administrator declares eligibility for 
additional disaster assistance under this para-
graph shall— 
‘‘(i) have resulted in extraordinary 
levels of casualties or damage or disruption 
severely affecting the population (including 
mass evacuations), infrastructure, environ-
ment, economy, national morale, or govern-
ment functions in an area; 
‘‘(ii) be comparable to the description 
of a catastrophic incident in the National 
Response Plan of the Administration, or 
any successor thereto, unless there is no 
successor to such plan, in which case this 
clause shall have no force or effect; and 
‘‘(iii) be of such size and scope that— 
‘‘(I) the disaster assistance pro-
grams under the other paragraphs 
under this subsection are incapable of 
providing adequate and timely assist-
ance to individuals or business con-
cerns located within the disaster area; 
or 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01407
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1408 
‘‘(II) a significant number of 
business concerns outside the disaster 
area have suffered disaster-related 
substantial economic injury as a result 
of the incident.’’. 
SEC. 12082. ADDITIONAL ECONOMIC INJURY DISASTER 
LOAN ASSISTANCE. 
Paragraph (9) of section 7(b) of the Small Business 
Act (15 U.S.C. 636(b)), as added by section 12081, is 
amended by adding at the end the following: 
‘‘(C) ADDITIONAL ECONOMIC INJURY DIS-
ASTER LOAN ASSISTANCE.— 
‘‘(i) IN
GENERAL.—If the Adminis-
trator declares eligibility for additional dis-
aster assistance under this paragraph, the 
Administrator may make such loans under 
this subparagraph (either directly or in co-
operation with banks or other lending in-
stitutions through agreements to partici-
pate on an immediate or deferred basis) as 
the Administrator determines appropriate 
to eligible small business concerns located 
anywhere in the United States. 
‘‘(ii) PROCESSING TIME.— 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01408
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1409 
‘‘(I) IN
GENERAL.—If the Ad-
ministrator determines that the aver-
age processing time for applications 
for disaster loans under this subpara-
graph relating to a specific major dis-
aster is more than 15 days, the Ad-
ministrator shall give priority to the 
processing of such applications sub-
mitted by eligible small business con-
cerns located inside the disaster area, 
until the Administrator determines 
that the average processing time for 
such applications is not more than 15 
days. 
‘‘(II) SUSPENSION
OF
APPLICA-
TIONS
FROM
OUTSIDE
DISASTER 
AREA.—If the Administrator deter-
mines that the average processing 
time for applications for disaster loans 
under this subparagraph relating to a 
specific major disaster is more than 
30 days, the Administrator shall sus-
pend the processing of such applica-
tions submitted by eligible small busi-
ness concerns located outside the dis-
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01409
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1410 
aster area, until the Administrator de-
termines that the average processing 
time for such applications is not more 
than 15 days. 
‘‘(iii) LOAN
TERMS.—A loan under 
this subparagraph shall be made on the 
same terms as a loan under paragraph (2). 
‘‘(D) DEFINITIONS.—In this paragraph— 
‘‘(i) the term ‘disaster area’ means 
the area for which the applicable major 
disaster was declared; 
‘‘(ii) the term ‘disaster-related sub-
stantial economic injury’ means economic 
harm to a business concern that results in 
the inability of the business concern to— 
‘‘(I) meet its obligations as it 
matures; 
‘‘(II) meet its ordinary and nec-
essary operating expenses; or 
‘‘(III) market, produce, or pro-
vide a product or service ordinarily 
marketed, produced, or provided by 
the business concern because the busi-
ness concern relies on materials from 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01410
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1411 
the disaster area or sells or markets 
in the disaster area; and 
‘‘(iii) the term ‘eligible small business 
concern’ means a small business concern— 
‘‘(I) that has suffered disaster-re-
lated substantial economic injury as a 
result of the applicable major disaster; 
and 
‘‘(II)(aa) for which not less than 
25 percent of the market share of 
that small business concern is from 
business transacted in the disaster 
area; 
‘‘(bb) for which not less than 25 
percent of an input into a production 
process of that small business concern 
is from the disaster area; or 
‘‘(cc) that relies on a provider lo-
cated in the disaster area for a service 
that is not readily available else-
where.’’. 
SEC. 12083. PRIVATE DISASTER LOANS. 
(a) IN GENERAL.—Section 7 of the Small Business 
Act (15 U.S.C. 636) is amended by inserting after sub-
section (b) the following: 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01411
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1412 
‘‘(c) PRIVATE DISASTER LOANS.— 
‘‘(1) DEFINITIONS.—In this subsection— 
‘‘(A) the term ‘disaster area’ means any 
area for which the President declared a major 
disaster relating to which the Administrator de-
clares eligibility for additional disaster assist-
ance under subsection (b)(9), during the period 
of that major disaster declaration; 
‘‘(B) the term ‘eligible individual’ means 
an individual who is eligible for disaster assist-
ance under subsection (b)(1) relating to a 
major disaster relating to which the Adminis-
trator declares eligibility for additional disaster 
assistance under subsection (b)(9); 
‘‘(C) the term ‘eligible small business con-
cern’ means a business concern that is— 
‘‘(i) a small business concern, as de-
fined under this Act; or 
‘‘(ii) a small business concern, as de-
fined in section 103 of the Small Business 
Investment Act of 1958; 
‘‘(D) the term ‘preferred lender’ means a 
lender participating in the Preferred Lender 
Program; 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01412
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1413 
‘‘(E) the term ‘Preferred Lender Program’ 
has the meaning given that term in subsection 
(a)(2)(C)(ii); and 
‘‘(F) the term ‘qualified private lender’ 
means any privately-owned bank or other lend-
ing institution that— 
‘‘(i) is not a preferred lender; and 
‘‘(ii) the Administrator determines 
meets the criteria established under para-
graph (10). 
‘‘(2) PROGRAM REQUIRED.—The Administrator 
shall carry out a program, to be known as the Pri-
vate Disaster Assistance program, under which the 
Administration may guarantee timely payment of 
principal and interest, as scheduled, on any loan 
made to an eligible small business concern located in 
a disaster area and to an eligible individual. 
‘‘(3) USE OF LOANS.—A loan guaranteed by 
the Administrator under this subsection may be used 
for any purpose authorized under subsection (b). 
‘‘(4) ONLINE APPLICATIONS.— 
‘‘(A) 
ESTABLISHMENT.—The 
Adminis-
trator may establish, directly or through an 
agreement with another entity, an online appli-
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01413
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1414 
cation process for loans guaranteed under this 
subsection. 
‘‘(B) OTHER FEDERAL ASSISTANCE.—The 
Administrator may coordinate with the head of 
any other appropriate Federal agency so that 
any application submitted through an online ap-
plication process established under this para-
graph may be considered for any other Federal 
assistance program for disaster relief. 
‘‘(C) CONSULTATION.—In establishing an 
online application process under this paragraph, 
the Administrator shall consult with appro-
priate persons from the public and private sec-
tors, including private lenders. 
‘‘(5) MAXIMUM AMOUNTS.— 
‘‘(A) GUARANTEE PERCENTAGE.—The Ad-
ministrator may guarantee not more than 85 
percent of a loan under this subsection. 
‘‘(B) 
LOAN
AMOUNT.—The 
maximum 
amount of a loan guaranteed under this sub-
section shall be $2,000,000. 
‘‘(6) TERMS AND CONDITIONS.—A loan guaran-
teed under this subsection shall be made under the 
same terms and conditions as a loan under sub-
section (b). 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01414
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1415 
‘‘(7) LENDERS.— 
‘‘(A) IN
GENERAL.—A loan guaranteed 
under this subsection made to— 
‘‘(i) a qualified individual may be 
made by a preferred lender; and 
‘‘(ii) a qualified small business con-
cern may be made by a qualified private 
lender or by a preferred lender that also 
makes loans to qualified individuals. 
‘‘(B) COMPLIANCE.—If the Administrator 
determines that a preferred lender knowingly 
failed to comply with the underwriting stand-
ards for loans guaranteed under this subsection 
or violated the terms of the standard operating 
procedure agreement between that preferred 
lender and the Administration, the Adminis-
trator shall do 1 or more of the following: 
‘‘(i) Exclude the preferred lender from 
participating in the program under this 
subsection. 
‘‘(ii) Exclude the preferred lender 
from participating in the Preferred Lender 
Program for a period of not more than 5 
years. 
‘‘(8) FEES.— 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01415
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1416 
‘‘(A) IN
GENERAL.—The Administrator 
may not collect a guarantee fee under this sub-
section. 
‘‘(B) ORIGINATION
FEE.—The Adminis-
trator may pay a qualified private lender or 
preferred lender an origination fee for a loan 
guaranteed under this subsection in an amount 
agreed upon in advance between the qualified 
private lender or preferred lender and the Ad-
ministrator. 
‘‘(9) DOCUMENTATION.—A qualified private 
lender or preferred lender may use its own loan doc-
umentation for a loan guaranteed by the Adminis-
trator under this subsection, to the extent author-
ized by the Administrator. The ability of a lender to 
use its own loan documentation for a loan guaran-
teed under this subsection shall not be considered 
part of the criteria for becoming a qualified private 
lender under the regulations promulgated under 
paragraph (10). 
‘‘(10) IMPLEMENTATION REGULATIONS.— 
‘‘(A) IN GENERAL.—Not later than 1 year 
after the date of enactment of the Small Busi-
ness Disaster Response and Loan Improve-
ments Act of 2008, the Administrator shall 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01416
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1417 
issue final regulations establishing permanent 
criteria for qualified private lenders. 
‘‘(B) REPORT
TO
CONGRESS.—Not later 
than 6 months after the date of enactment of 
the Small Business Disaster Response and 
Loan Improvements Act of 2008, the Adminis-
trator shall submit a report on the progress of 
the regulations required by subparagraph (A) to 
the Committee on Small Business and Entre-
preneurship of the Senate and the Committee 
on Small Business of the House of Representa-
tives. 
‘‘(11) AUTHORIZATION OF APPROPRIATIONS.— 
‘‘(A) IN GENERAL.—Amounts necessary to 
carry out this subsection shall be made avail-
able from amounts appropriated to the Admin-
istration to carry out subsection (b). 
‘‘(B) AUTHORITY
TO
REDUCE
INTEREST 
RATES AND OTHER TERMS AND CONDITIONS.— 
Funds appropriated to the Administration to 
carry out this subsection, may be used by the 
Administrator to meet the loan terms and con-
ditions specified in paragraph (6). 
‘‘(12) PURCHASE
OF
LOANS.—The Adminis-
trator may enter into an agreement with a qualified 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01417
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1418 
private lender or preferred lender to purchase any 
loan guaranteed under this subsection.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to any major disaster declared on 
or after the date of enactment of this Act. 
SEC. 12084. IMMEDIATE DISASTER ASSISTANCE PROGRAM. 
The Small Business Act is amended by inserting after 
section 41, as added by this Act, the following: 
‘‘SEC. 42. IMMEDIATE DISASTER ASSISTANCE PROGRAM. 
‘‘(a) PROGRAM REQUIRED.—The Administrator shall 
carry out a program, to be known as the Immediate Dis-
aster Assistance program, under which the Administration 
participates on a deferred (guaranteed) basis in 85 per-
cent of the balance of the financing outstanding at the 
time of disbursement of the loan if such balance is less 
than or equal to $25,000 for businesses affected by a dis-
aster. 
‘‘(b) ELIGIBILITY REQUIREMENT.—To receive a loan 
guaranteed under subsection (a), the applicant shall also 
apply for, and meet basic eligibility standards for, a loan 
under subsection (b) or (c) of section 7. 
‘‘(c) USE OF PROCEEDS.—A person who receives a 
loan under subsection (b) or (c) of section 7 shall use the 
proceeds of that loan to repay all loans guaranteed under 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01418
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1419 
subsection (a), if any, before using the proceeds for any 
other purpose. 
‘‘(d) LOAN TERMS.— 
‘‘(1) NO PREPAYMENT PENALTY.—There shall 
be no prepayment penalty on a loan guaranteed 
under subsection (a). 
‘‘(2) REPAYMENT.—A person who receives a 
loan guaranteed under subsection (a) and who is dis-
approved for a loan under subsection (b) or (c) of 
section 7, as the case may be, shall repay the loan 
guaranteed under subsection (a) not later than the 
date established by the Administrator, which may 
not be earlier than 10 years after the date on which 
the loan guaranteed under subsection is disbursed. 
‘‘(e) APPROVAL
OR DISAPPROVAL.—The Adminis-
trator shall ensure that each applicant for a loan under 
the program receives a decision approving or disapproving 
of the application within 36 hours after the Administra-
tion receives the application.’’. 
SEC. 12085. EXPEDITED DISASTER ASSISTANCE LOAN PRO-
GRAM. 
(a) DEFINITION.—In this section, the term ‘‘pro-
gram’’ means the expedited disaster assistance business 
loan program established under subsection (b). 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01419
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1420 
(b) CREATION
OF PROGRAM.—The Administrator 
shall take such administrative action as is necessary to 
establish and implement an expedited disaster assistance 
business loan program under which the Administration 
may, on an expedited basis, guarantee timely payment of 
principal and interest, as scheduled on any loan made to 
an eligible small business concern under paragraph (9) of 
section 7(b) of the Small Business Act (15 U.S.C. 636(b)), 
as added by this Act. 
(c) CONSULTATION REQUIRED.—In establishing the 
program, the Administrator shall consult with— 
(1) appropriate personnel of the Administration 
(including District Office personnel of the Adminis-
tration); 
(2) appropriate technical assistance providers 
(including small business development centers); 
(3) appropriate lenders and credit unions; 
(4) the Committee on Small Business and En-
trepreneurship of the Senate; and 
(5) the Committee on Small Business of the 
House of Representatives. 
(d) RULES.— 
(1) IN GENERAL.—Not later than 1 year after 
the date of enactment of this Act, the Administrator 
shall issue rules in final form establishing and imple-
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01420
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1421 
menting the program in accordance with this sec-
tion. Such rules shall apply as provided for in this 
section, beginning 90 days after their issuance in 
final form. 
(2) CONTENTS.—The rules promulgated under 
paragraph (1) shall— 
(A) identify whether appropriate uses of 
funds under the program may include— 
(i) paying employees; 
(ii) paying bills and other financial 
obligations; 
(iii) making repairs; 
(iv) purchasing inventory; 
(v) restarting or operating a small 
business concern in the community in 
which it was conducting operations prior to 
the applicable major disaster, or to a 
neighboring area, county, or parish in the 
disaster area; or 
(vi) covering additional costs until the 
small business concern is able to obtain 
funding through insurance claims, Federal 
assistance programs, or other sources; and 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01421
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1422 
(B) set the terms and conditions of any 
loan made under the program, subject to para-
graph (3). 
(3) TERMS AND CONDITIONS.—A loan guaran-
teed by the Administration under this section— 
(A) shall be for not more than $150,000; 
(B) shall be a short-term loan, not to ex-
ceed 180 days, except that the Administrator 
may extend such term as the Administrator de-
termines necessary or appropriate on a case-by- 
case basis; 
(C) shall have an interest rate not to ex-
ceed 300 basis points above the interest rate es-
tablished by the Board of Governors of the Fed-
eral Reserve System that 1 bank charges an-
other for reserves that are lent on an overnight 
basis on the date the loan is made; 
(D) shall have no prepayment penalty; 
(E) may only be made to a borrower that 
meets the requirements for a loan under section 
7(b) of the Small Business Act (15 U.S.C. 
636(b)), as amended by this Act; 
(F) may be refinanced as part of any sub-
sequent disaster assistance provided under sec-
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01422
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1423 
tion 7(b) of the Small Business Act (15 U.S.C. 
636(b)), as amended by this Act; 
(G) may receive expedited loss verification 
and loan processing, if the applicant is— 
(i) a major source of employment in 
the disaster area (which shall be deter-
mined in the same manner as under sec-
tion 7(b)(3)(B) of the Small Business Act 
(15 U.S.C. 636(b)(3)(B))); or 
(ii) vital to recovery efforts in the re-
gion (including providing debris removal 
services, manufactured housing, or building 
materials); and 
(H) shall be subject to such additional 
terms as the Administrator determines nec-
essary or appropriate. 
(e) REPORT
TO
CONGRESS.—Not later than 5 
months after the date of enactment of this Act, the Ad-
ministrator shall report to the Committee on Small Busi-
ness and Entrepreneurship of the Senate and the Com-
mittee on Small Business of the House of Representatives 
on the progress of the Administrator in establishing the 
program. 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01423
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1424 
(f) AUTHORIZATION.—There are authorized to be ap-
propriated to the Administrator such sums as are nec-
essary to carry out this section. 
SEC. 12086. GULF COAST DISASTER LOAN REFINANCING 
PROGRAM. 
(a) IN GENERAL.—The Administrator may carry out 
a program to refinance Gulf Coast disaster loans (in this 
section referred to as the ‘‘program’’). 
(b) TERMS.—The terms of a Gulf Coast disaster loan 
refinanced under the program shall be identical to the 
terms of the original loan, except that the Administrator 
may provide an option to defer repayment on the loan. 
A deferment under the program shall end not later than 
4 years after the date on which the initial disbursement 
under the original loan was made. 
(c) AMOUNT.—The amount of a Gulf Coast disaster 
loan refinanced under the program shall not exceed the 
amount of the original loan. 
(d) DISCLOSURE OF ACCRUED INTEREST.—If the 
Administrator provides an option to defer repayment 
under the program, the Administrator shall disclose the 
accrued interest that must be paid under the option. 
(e) DEFINITION.—In this section, the term ‘‘Gulf 
Coast disaster loan’’ means a loan— 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01424
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1425 
(1) made under section 7(b) of the Small Busi-
ness Act (15 U.S.C. 636(b)); 
(2) in response to Hurricane Katrina of 2005, 
Hurricane Rita of 2005, or Hurricane Wilma of 
2005; and 
(3) to a small business concern located in a 
county or parish designated by the Administrator as 
a disaster area by reason of a hurricane described 
in paragraph (2) under disaster declaration 10176, 
10177, 10178, 10179, 10180, 10181, 10203, 10204, 
10205, 10206, 10222, or 10223. 
(f) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated such sums as may be 
necessary to carry out this section. 
PART III—MISCELLANEOUS 
SEC. 12091. REPORTS ON DISASTER ASSISTANCE. 
(a) MONTHLY
ACCOUNTING
REPORT
TO
CON-
GRESS.— 
(1) REPORTING
REQUIREMENTS.—Not later 
than the fifth business day of each month during the 
applicable period for a major disaster, the Adminis-
trator shall submit to the Committee on Small Busi-
ness and Entrepreneurship and the Committee on 
Appropriations of the Senate and to the Committee 
on Small Business and the Committee on Appropria-
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01425
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1426 
tions of the House of Representatives a report on 
the operation of the disaster loan program author-
ized under section 7 of the Small Business Act (15 
U.S.C. 636) for that major disaster during the pre-
ceding month. 
(2) CONTENTS.—Each report submitted under 
paragraph (1) shall include— 
(A) the daily average lending volume, in 
number of loans and dollars, and the percent by 
which each category has increased or decreased 
since the previous report under paragraph (1); 
(B) the weekly average lending volume, in 
number of loans and dollars, and the percent by 
which each category has increased or decreased 
since the previous report under paragraph (1); 
(C) the amount of funding spent over the 
month for loans, both in appropriations and 
program level, and the percent by which each 
category has increased or decreased since the 
previous report under paragraph (1); 
(D) the amount of funding available for 
loans, both in appropriations and program level, 
and the percent by which each category has in-
creased or decreased since the previous report 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01426
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1427 
under paragraph (1), noting the source of any 
additional funding; 
(E) an estimate of how long the available 
funding for such loans will last, based on the 
spending rate; 
(F) the amount of funding spent over the 
month for staff, along with the number of staff, 
and the percent by which each category has in-
creased or decreased since the previous report 
under paragraph (1); 
(G) the amount of funding spent over the 
month for administrative costs, and the percent 
by which such spending has increased or de-
creased since the previous report under para-
graph (1); 
(H) the amount of funding available for 
salaries and expenses combined, and the per-
cent by which such funding has increased or de-
creased since the previous report under para-
graph (1), noting the source of any additional 
funding; and 
(I) an estimate of how long the available 
funding for salaries and expenses will last, 
based on the spending rate. 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01427
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1428 
(b) WEEKLY DISASTER UPDATES TO CONGRESS FOR 
PRESIDENTIALLY DECLARED DISASTERS.— 
(1) IN GENERAL.—Each week during a disaster 
update period, the Administration shall submit to 
the Committee on Small Business and Entrepre-
neurship of the Senate and to the Committee on 
Small Business of the House of Representatives a 
report on the operation of the disaster loan program 
of the Administration for the area in which the 
President declared a major disaster. 
(2) CONTENTS.—Each report submitted under 
paragraph (1) shall include— 
(A) the number of Administration staff 
performing loan processing, field inspection, 
and other duties for the declared disaster, and 
the allocations of such staff in the disaster field 
offices, disaster recovery centers, workshops, 
and other Administration offices nationwide; 
(B) the daily number of applications re-
ceived from applicants in the relevant area, as 
well as a breakdown of such figures by State; 
(C) the daily number of applications pend-
ing application entry from applicants in the rel-
evant area, as well as a breakdown of such fig-
ures by State; 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01428
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1429 
(D) the daily number of applications with-
drawn by applicants in the relevant area, as 
well as a breakdown of such figures by State; 
(E) the daily number of applications sum-
marily declined by the Administration from ap-
plicants in the relevant area, as well as a break-
down of such figures by State; 
(F) the daily number of applications de-
clined by the Administration from applicants in 
the relevant area, as well as a breakdown of 
such figures by State; 
(G) the daily number of applications in 
process from applicants in the relevant area, as 
well as a breakdown of such figures by State; 
(H) the daily number of applications ap-
proved by the Administration from applicants in 
the relevant area, as well as a breakdown of 
such figures by State; 
(I) the daily dollar amount of applications 
approved by the Administration from applicants 
in the relevant area, as well as a breakdown of 
such figures by State; 
(J) the daily amount of loans dispersed, 
both partially and fully, by the Administration 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01429
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1430 
to applicants in the relevant area, as well as a 
breakdown of such figures by State; 
(K) the daily dollar amount of loans dis-
bursed, both partially and fully, from the rel-
evant area, as well as a breakdown of such fig-
ures by State; 
(L) the number of applications approved, 
including dollar amount approved, as well as 
applications partially and fully disbursed, in-
cluding dollar amounts, since the last report 
under paragraph (1); and 
(M) the declaration date, physical damage 
closing date, economic injury closing date, and 
number of counties included in the declaration 
of a major disaster. 
(c) PERIODS WHEN ADDITIONAL DISASTER ASSIST-
ANCE IS MADE AVAILABLE.— 
(1) IN GENERAL.—During any period for which 
the Administrator declares eligibility for additional 
disaster assistance under paragraph (9) of section 
7(b) of the Small Business Act (15 U.S.C. 632(b)), 
as amended by this Act, the Administrator shall, on 
a monthly basis, submit to the Committee on Small 
Business and Entrepreneurship of the Senate and to 
the Committee on Small Business of the House of 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01430
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1431 
Representatives a report on the disaster assistance 
operations of the Administration with respect to the 
applicable major disaster. 
(2) CONTENTS.—Each report submitted under 
paragraph (1) shall specify— 
(A) the number of applications for disaster 
assistance distributed; 
(B) the number of applications for disaster 
assistance received; 
(C) the average time for the Administra-
tion to approve or disapprove an application for 
disaster assistance; 
(D) the amount of disaster loans approved; 
(E) the average time for initial disburse-
ment of disaster loan proceeds; and 
(F) the amount of disaster loan proceeds 
disbursed. 
(d) NOTICE
OF
THE NEED
FOR SUPPLEMENTAL 
FUNDS.—On the same date that the Administrator noti-
fies any committee of the Senate or the House of Rep-
resentatives that supplemental funding is necessary for 
the disaster loan program of the Administration in any 
fiscal year, the Administrator shall notify in writing the 
Committee on Small Business and Entrepreneurship of 
the Senate and the Committee on Small Business of the 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01431
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1432 
House of Representatives regarding the need for supple-
mental funds for that loan program. 
(e) REPORT ON CONTRACTING.— 
(1) IN
GENERAL.—Not later than 6 months 
after the date on which the President declares a 
major disaster, and every 6 months thereafter until 
the date that is 18 months after the date on which 
the major disaster was declared, the Administrator 
shall submit a report to the Committee on Small 
Business and Entrepreneurship of the Senate and to 
the Committee on Small Business of the House of 
Representatives regarding Federal contracts award-
ed as a result of that major disaster. 
(2) CONTENTS.—Each report submitted under 
paragraph (1) shall include— 
(A) the total number of contracts awarded 
as a result of that major disaster; 
(B) the total number of contracts awarded 
to small business concerns as a result of that 
major disaster; 
(C) the total number of contracts awarded 
to women and minority-owned businesses as a 
result of that major disaster; and 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01432
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1433 
(D) the total number of contracts awarded 
to local businesses as a result of that major dis-
aster. 
(f) REPORT ON LOAN APPROVAL RATE.— 
(1) IN
GENERAL.—Not later than 6 months 
after the date of enactment of this Act, the Adminis-
trator shall submit a report to the Committee on 
Small Business and Entrepreneurship of the Senate 
and the Committee on Small Business of the House 
of Representatives detailing how the Administration 
can improve the processing of applications under the 
disaster loan program of the Administration. 
(2) CONTENTS.—The report submitted under 
paragraph (1) shall include— 
(A) recommendations, if any, regarding— 
(i) staffing levels during a major dis-
aster; 
(ii) how to improve the process for 
processing, 
approving, 
and 
disbursing 
loans under the disaster loan program of 
the Administration, to ensure that the 
maximum assistance is provided to victims 
in a timely manner; 
(iii) the viability of using alternative 
methods for assessing the ability of an ap-
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01433
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1434 
plicant to repay a loan, including the credit 
score of the applicant on the day before 
the date on which the disaster for which 
the applicant is seeking assistance was de-
clared; 
(iv) methods, if any, for the Adminis-
tration to expedite loss verification and 
loan processing of disaster loans during a 
major disaster for businesses affected by, 
and located in the area for which the 
President declared, the major disaster that 
are a major source of employment in the 
area or are vital to recovery efforts in the 
region (including providing debris removal 
services, manufactured housing, or building 
materials); 
(v) legislative changes, if any, needed 
to implement findings from the Accelerated 
Disaster Response Initiative of the Admin-
istration; and 
(vi) a description of how the Adminis-
tration plans to integrate and coordinate 
the response to a major disaster with the 
technical assistance programs of the Ad-
ministration; and 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01434
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1435 
(B) the plans of the Administrator for im-
plementing any recommendation made under 
subparagraph (A). 
(g) REPORTS
ON
DISASTER
ASSISTANCE.—The 
Small Business Act is amended by inserting after section 
42, as added by this Act, the following: 
‘‘SEC. 43. ANNUAL REPORTS ON DISASTER ASSISTANCE. 
‘‘Not later than 45 days after the end of a fiscal year, 
the Administrator shall submit to the Committee on Small 
Business and Entrepreneurship of the Senate and the 
Committee on Small Business of the House of Representa-
tives a report on the disaster assistance operations of the 
Administration for that fiscal year. The report shall— 
‘‘(1) specify the number of Administration per-
sonnel involved in such operations; 
‘‘(2) describe any material changes to those op-
erations, such as changes to technologies used or to 
personnel responsibilities; 
‘‘(3) describe and assess the effectiveness of the 
Administration in responding to disasters during 
that fiscal year, including a description of the num-
ber and amounts of loans made for damage and for 
economic injury; and 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01435
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1436 
‘‘(4) describe the plans of the Administration 
for preparing to respond to disasters during the next 
fiscal year.’’. 
TITLE XIII—COMMODITY 
FUTURES 
SEC. 13001. SHORT TITLE. 
This title may be cited as the ‘‘CFTC Reauthoriza-
tion Act of 2008’’. 
Subtitle A—General Provisions 
SEC. 13101. COMMISSION AUTHORITY OVER AGREEMENTS, 
CONTRACTS OR TRANSACTIONS IN FOREIGN 
CURRENCY. 
(a) IN GENERAL.—Section 2(c)(2) of the Commodity 
Exchange Act (7 U.S.C. 2(c)(2)) is amended by striking 
subparagraphs (B) and (C) and inserting the following: 
‘‘(B) 
AGREEMENTS, 
CONTRACTS, 
AND 
TRANSACTIONS
IN
RETAIL
FOREIGN
CUR-
RENCY.— 
‘‘(i) This Act applies to, and the Com-
mission shall have jurisdiction over, an 
agreement, contract, or transaction in for-
eign currency that— 
‘‘(I) is a contract of sale of a 
commodity for future delivery (or an 
option on such a contract) or an op-
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01436
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1437 
tion (other than an option executed or 
traded on a national securities ex-
change registered pursuant to section 
6(a) of the Securities Exchange Act of 
1934 (15 U.S.C. 78f(a))); and 
‘‘(II) is offered to, or entered 
into with, a person that is not an eli-
gible contract participant, unless the 
counterparty, or the person offering to 
be the counterparty, of the person 
is— 
‘‘(aa) a financial institution; 
‘‘(bb)(AA) a broker or deal-
er registered under section 15(b) 
(except paragraph (11) thereof) 
or 15C of the Securities Ex-
change Act of 1934 (15 U.S.C. 
78o(b), 78o–5); or 
‘‘(BB) an associated person 
of a broker or dealer registered 
under section 15(b) (except para-
graph (11) thereof) or 15C of the 
Securities Exchange Act of 1934 
(15 U.S.C. 78o(b), 78o–5) con-
cerning the financial or securities 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01437
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1438 
activities of which the broker or 
dealer makes and keeps records 
under section 15C(b) or 17(h) of 
the Securities Exchange Act of 
1934 
(15 
U.S.C. 
78o–5(b), 
78q(h)); 
‘‘(cc)(AA) a futures commis-
sion merchant that is primarily 
or substantially engaged in the 
business activities described in 
section 1a(20) of this Act, is reg-
istered under this Act, is not a 
person described in item (bb) of 
this subclause, and maintains ad-
justed net capital equal to or in 
excess of the dollar amount that 
applies for purposes of clause (ii) 
of this subparagraph; or 
‘‘(BB) an affiliated person 
of a futures commission mer-
chant that is primarily or sub-
stantially engaged in the business 
activities described in section 
1a(20) of this Act, is registered 
under this Act, and is not a per-
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01438
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1439 
son described in item (bb) of this 
subclause, if the affiliated person 
maintains adjusted net capital 
equal to or in excess of the dollar 
amount that applies for purposes 
of clause (ii) of this subpara-
graph and is not a person de-
scribed in such item (bb), and 
the futures commission merchant 
makes and keeps records under 
section 4f(c)(2)(B) of this Act 
concerning the futures and other 
financial activities of the affili-
ated person; 
‘‘(dd) an insurance company 
described in section 1a(12)(A)(ii) 
of this Act, or a regulated sub-
sidiary or affiliate of such an in-
surance company; 
‘‘(ee) a financial holding 
company (as defined in section 2 
of the Bank Holding Company 
Act of 1956); 
‘‘(ff) an investment bank 
holding company (as defined in 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01439
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1440 
section 17(i) of the Securities 
Exchange 
Act 
of 
1934 
(15 
U.S.C. 78q(i))); or 
‘‘(gg) a retail foreign ex-
change dealer that maintains ad-
justed net capital equal to or in 
excess of the dollar amount that 
applies for purposes of clause (ii) 
of this subparagraph and is reg-
istered in such capacity with the 
Commission, 
subject 
to 
such 
terms and conditions as the Com-
mission shall prescribe, and is a 
member of a futures association 
registered under section 17. 
‘‘(ii) The dollar amount that applies 
for purposes of this clause is— 
‘‘(I) $10,000,000, beginning 120 
days after the date of the enactment 
of this clause; 
‘‘(II) $15,000,000, beginning 240 
days after such date of enactment; 
and 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01440
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1441 
‘‘(III) 
$20,000,000, 
beginning 
360 days after such date of enact-
ment. 
‘‘(iii) Notwithstanding items (cc) and 
(gg) of clause (i)(II) of this subparagraph, 
agreements, contracts, or transactions de-
scribed in clause (i) of this subparagraph 
shall be subject to subsection (a)(1)(B) of 
this section and sections 4(b), 4b, 4c(b), 
4o, 6(c) and 6(d) (except to the extent that 
sections 6(c) and 6(d) prohibit manipula-
tion of the market price of any commodity 
in interstate commerce, or for future deliv-
ery on or subject to the rules of any mar-
ket), 6c, 6d, 8(a), 13(a), and 13(b) if the 
agreements, contracts, or transactions are 
offered, or entered into, by a person that 
is registered as a futures commission mer-
chant or retail foreign exchange dealer, or 
an affiliated person of a futures commis-
sion merchant registered under this Act 
that is not also a person described in any 
of item (aa), (bb), (dd), (ee), or (ff) of 
clause (i)(II) of this subparagraph. 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01441
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1442 
‘‘(iv)(I) Notwithstanding items (cc) 
and (gg) of clause (i)(II), a person, unless 
registered in such capacity as the Commis-
sion by rule, regulation, or order shall de-
termine and a member of a futures asso-
ciation registered under section 17, shall 
not— 
‘‘(aa) solicit or accept orders 
from any person that is not an eligible 
contract participant in connection 
with agreements, contracts, or trans-
actions described in clause (i) entered 
into with or to be entered into with a 
person who is not described in item 
(aa), (bb), (dd), (ee), or (ff) of clause 
(i)(II); 
‘‘(bb) exercise discretionary trad-
ing authority or obtain written au-
thorization to exercise discretionary 
trading authority over any account for 
or on behalf of any person that is not 
an eligible contract participant in con-
nection with agreements, contracts, or 
transactions described in clause (i) en-
tered into with or to be entered into 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01442
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1443 
with a person who is not described in 
item (aa), (bb), (dd), (ee), or (ff) of 
clause (i)(II); or 
‘‘(cc) operate or solicit funds, se-
curities, or property for any pooled in-
vestment vehicle that is not an eligible 
contract participant in connection 
with agreements, contracts, or trans-
actions described in clause (i) entered 
into with or to be entered into with a 
person who is not described in item 
(aa), (bb), (dd), (ee), or (ff) of clause 
(i)(II). 
‘‘(II) Subclause (I) of this clause shall 
not apply to— 
‘‘(aa) any person described in 
any of item (aa), (bb), (dd), (ee), or 
(ff) of clause (i)(II); 
‘‘(bb) any such person’s associ-
ated persons; or 
‘‘(cc) any person who would be 
exempt from registration if engaging 
in the same activities in connection 
with transactions conducted on or 
subject to the rules of a contract mar-
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01443
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1444 
ket or a derivatives transaction execu-
tion facility. 
‘‘(III) Notwithstanding items (cc) and 
(gg) of clause (i)(II), the Commission may 
make, promulgate, and enforce such rules 
and regulations as, in the judgment of the 
Commission, are reasonably necessary to 
effectuate any of the provisions of, or to 
accomplish any of the purposes of, this Act 
in connection with the activities of persons 
subject to subclause (I). 
‘‘(IV) Subclause (III) of this clause 
shall not apply to— 
‘‘(aa) any person described in 
any of item (aa) through (ff) of clause 
(i)(II); 
‘‘(bb) any such person’s associ-
ated persons; or 
‘‘(cc) any person who would be 
exempt from registration if engaging 
in the same activities in connection 
with transactions conducted on or 
subject to the rules of a contract mar-
ket or a derivatives transaction execu-
tion facility. 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01444
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1445 
‘‘(v) Notwithstanding items (cc) and 
(gg) of clause (i)(II), the Commission may 
make, promulgate, and enforce such rules 
and regulations as, in the judgment of the 
Commission, are reasonably necessary to 
effectuate any of the provisions of, or to 
accomplish any of the purposes of, this Act 
in connection with agreements, contracts, 
or transactions described in clause (i) 
which are offered, or entered into, by a 
person described in item (cc) or (gg) of 
clause (i)(II). 
‘‘(C)(i)(I) This subparagraph shall apply to 
any agreement, contract, or transaction in for-
eign currency that is— 
‘‘(aa) offered to, or entered into 
with, a person that is not an eligible 
contract participant (except that this 
subparagraph shall not apply if the 
counterparty, or the person offering to 
be the counterparty, of the person 
that is not an eligible contract partici-
pant is a person described in any of 
item (aa), (bb), (dd), (ee), or (ff) of 
subparagraph (B)(i)(II)); and 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01445
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1446 
‘‘(bb) offered, or entered into, on 
a leveraged or margined basis, or fi-
nanced 
by 
the 
offeror, 
the 
counterparty, or a person acting in 
concert 
with 
the 
offeror 
or 
counterparty on a similar basis. 
‘‘(II) Subclause (I) of this clause shall not 
apply to— 
‘‘(aa) a security that is not a security 
futures product; or 
‘‘(bb) a contract of sale that— 
‘‘(AA) results in actual delivery 
within 2 days; or 
‘‘(BB) creates an enforceable ob-
ligation to deliver between a seller and 
buyer that have the ability to deliver 
and accept delivery, respectively, in 
connection with their line of business. 
‘‘(ii)(I) Agreements, contracts, or trans-
actions described in clause (i) of this subpara-
graph shall be subject to subsection (a)(1)(B) 
of this section and sections 4(b), 4b, 4c(b), 4o, 
6(c) and 6(d) (except to the extent that sections 
6(c) and 6(d) prohibit manipulation of the mar-
ket price of any commodity in interstate com-
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01446
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1447 
merce, or for future delivery on or subject to 
the rules of any market), 6c, 6d, 8(a), 13(a), 
and 13(b). 
‘‘(II) Subclause (I) of this clause shall not 
apply to— 
‘‘(aa) any person described in any of 
item (aa), (bb), (dd), (ee), or (ff) of sub-
paragraph (B)(i)(II); or 
‘‘(bb) any such person’s associated 
persons. 
‘‘(III) The Commission may make, promul-
gate, and enforce such rules and regulations as, 
in the judgment of the Commission, are reason-
ably necessary to effectuate any of the provi-
sions of or to accomplish any of the purposes 
of this Act in connection with agreements, con-
tracts, or transactions described in clause (i) of 
this subparagraph if the agreements, contracts, 
or transactions are offered, or entered into, by 
a person that is not described in item (aa) 
through (ff) of subparagraph (B)(i)(II). 
‘‘(iii)(I) A person, unless registered in such 
capacity as the Commission by rule, regulation, 
or order shall determine and a member of a fu-
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01447
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1448 
tures association registered under section 17, 
shall not— 
‘‘(aa) solicit or accept orders from any 
person that is not an eligible contract par-
ticipant in connection with agreements, 
contracts, or transactions described in 
clause (i) of this subparagraph entered 
into with or to be entered into with a per-
son who is not described in item (aa), (bb), 
(dd), 
(ee), 
or 
(ff) 
of 
subparagraph 
(B)(i)(II); 
‘‘(bb) exercise discretionary trading 
authority or obtain written authorization 
to exercise written trading authority over 
any account for or on behalf of any person 
that is not an eligible contract participant 
in connection with agreements, contracts, 
or transactions described in clause (i) of 
this subparagraph entered into with or to 
be entered into with a person who is not 
described in item (aa), (bb), (dd), (ee), or 
(ff) of subparagraph (B)(i)(II); or 
‘‘(cc) operate or solicit funds, securi-
ties, or property for any pooled investment 
vehicle that is not an eligible contract par-
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01448
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1449 
ticipant in connection with agreements, 
contracts, or transactions described in 
clause (i) of this subparagraph entered 
into with or to be entered into with a per-
son who is not described in item (aa), (bb), 
(dd), 
(ee), 
or 
(ff) 
of 
subparagraph 
(B)(i)(II). 
‘‘(II) Subclause (I) of this clause shall not 
apply to— 
‘‘(aa) any person described in item 
(aa), (bb), (dd), (ee), or (ff) of subpara-
graph (B)(i)(II); 
‘‘(bb) any such person’s associated 
persons; or 
‘‘(cc) any person who would be ex-
empt from registration if engaging in the 
same activities in connection with trans-
actions conducted on or subject to the 
rules of a contract market or a derivatives 
transaction execution facility. 
‘‘(III) The Commission may make, promul-
gate, and enforce such rules and regulations as, 
in the judgment of the Commission, are reason-
ably necessary to effectuate any of the provi-
sions of, or to accomplish any of the purposes 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01449
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1450 
of, this Act in connection with the activities of 
persons subject to subclause (I). 
‘‘(IV) Subclause (III) of this clause shall 
not apply to— 
‘‘(aa) any person described in item 
(aa) 
through 
(ff) 
of 
subparagraph 
(B)(i)(II); 
‘‘(bb) any such person’s associated 
persons; or 
‘‘(cc) any person who would be ex-
empt from registration if engaging in the 
same activities in connection with trans-
actions conducted on or subject to the 
rules of a contract market or a derivatives 
transaction execution facility. 
‘‘(iv) Sections 4(b) and 4b shall apply to 
any agreement, contract, or transaction de-
scribed in clause (i) of this subparagraph as if 
the agreement, contract, or transaction were a 
contract of sale of a commodity for future deliv-
ery. 
‘‘(v) This subparagraph shall not be con-
strued to limit any jurisdiction that the Com-
mission may otherwise have under any other 
provision of this Act over an agreement, con-
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01450
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1451 
tract, or transaction that is a contract of sale 
of a commodity for future delivery. 
‘‘(vi) This subparagraph shall not be con-
strued to limit any jurisdiction that the Com-
mission or the Securities and Exchange Com-
mission may otherwise have under any other 
provision of this Act with respect to security fu-
tures products and persons effecting trans-
actions in security futures products.’’. 
(b) EFFECTIVE DATE.—The following provisions of 
the Commodity Exchange Act, as amended by subsection 
(a) of this section, shall be effective 120 days after the 
date of the enactment of this Act or at such other time 
as the Commodity Futures Trading Commission shall de-
termine: 
(1) Subparagraphs (B)(i)(II)(gg), (B)(iv), and 
(C)(iii) of section 2(c)(2). 
(2) 
The 
provisions 
of 
section 
2(c)(2)(B)(i)(II)(cc) that set forth adjusted net cap-
ital requirements, and the provisions of such section 
that require a futures commission merchant to be 
primarily or substantially engaged in certain busi-
ness activities. 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01451
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1452 
SEC. 13102. ANTI-FRAUD AUTHORITY OVER PRINCIPAL-TO- 
PRINCIPAL TRANSACTIONS. 
Section 4b of the Commodity Exchange Act (7 U.S.C. 
Section 6b) is amended— 
(1) by redesignating subsections (b) and (c) as 
subsections (c) and (d), respectively; and 
(2) by striking all through the end of subsection 
(a) and inserting the following: 
‘‘SEC. 4b. CONTRACTS DESIGNED TO DEFRAUD OR MIS-
LEAD. 
‘‘(a) UNLAWFUL ACTIONS.—It shall be unlawful— 
‘‘(1) for any person, in or in connection with 
any order to make, or the making of, any contract 
of sale of any commodity in interstate commerce or 
for future delivery that is made, or to be made, on 
or subject to the rules of a designated contract mar-
ket, for or on behalf of any other person; or 
‘‘(2) for any person, in or in connection with 
any order to make, or the making of, any contract 
of sale of any commodity for future delivery, or 
other agreement, contract, or transaction subject to 
paragraphs (1) and (2) of section 5a(g), that is 
made, or to be made, for or on behalf of, or with, 
any other person, other than on or subject to the 
rules of a designated contract market— 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01452
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1453 
‘‘(A) to cheat or defraud or attempt to 
cheat or defraud the other person; 
‘‘(B) willfully to make or cause to be made 
to the other person any false report or state-
ment or willfully to enter or cause to be entered 
for the other person any false record; 
‘‘(C) willfully to deceive or attempt to de-
ceive the other person by any means whatsoever 
in regard to any order or contract or the dis-
position or execution of any order or contract, 
or in regard to any act of agency performed, 
with respect to any order or contract for or, in 
the case of paragraph (2), with the other per-
son; or 
‘‘(D)(i) to bucket an order if the order is 
either represented by the person as an order to 
be executed, or is required to be executed, on or 
subject to the rules of a designated contract 
market; or 
‘‘(ii) to fill an order by offset against the 
order or orders of any other person, or willfully 
and knowingly and without the prior consent of 
the other person to become the buyer in respect 
to any selling order of the other person, or be-
come the seller in respect to any buying order 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01453
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1454 
of the other person, if the order is either rep-
resented by the person as an order to be exe-
cuted, or is required to be executed, on or sub-
ject to the rules of a designated contract mar-
ket unless the order is executed in accordance 
with the rules of the designated contract mar-
ket. 
‘‘(b) CLARIFICATION.—Subsection (a)(2) of this sec-
tion shall not obligate any person, in or in connection with 
a transaction in a contract of sale of a commodity for fu-
ture delivery, or other agreement, contract or transaction 
subject to paragraphs (1) and (2) of section 5a(g), with 
another person, to disclose to the other person nonpublic 
information that may be material to the market price, 
rate, or level of the commodity or transaction, except as 
necessary to make any statement made to the other person 
in or in connection with the transaction not misleading 
in any material respect.’’. 
SEC. 13103. CRIMINAL AND CIVIL PENALTIES. 
(a) ENFORCEMENT POWERS OF THE COMMISSION.— 
Section 6(c) of the Commodity Exchange Act (7 U.S.C. 
9, 15) is amended in clause (3) of the 10th sentence— 
(1) by inserting ‘‘(A)’’ after ‘‘assess such per-
son’’; and 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01454
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1455 
(2) by inserting after ‘‘each such violation’’ the 
following: ‘‘, or (B) in any case of manipulation or 
attempted manipulation in violation of this sub-
section, subsection (d) of this section, or section 
9(a)(2), a civil penalty of not more than the greater 
of $1,000,000 or triple the monetary gain to the 
person for each such violation,’’. 
(b) NONENFORCEMENT OF RULES OF GOVERNMENT 
OR OTHER VIOLATIONS.—Section 6b of such Act (7 
U.S.C. 13a) is amended— 
(1) in the first sentence, by inserting before the 
period at the end the following: ‘‘, or, in any case 
of manipulation or attempted manipulation in viola-
tion of section 6(c), 6(d), or 9(a)(2), a civil penalty 
of not more than $1,000,000 for each such viola-
tion’’; and 
(2) in the second sentence, by inserting before 
the period at the end the following: ‘‘, except that 
if the failure or refusal to obey or comply with the 
order involved any offense under section 9(a)(2), the 
registered entity, director, officer, agent, or employee 
shall be guilty of a felony and, on conviction, shall 
be subject to penalties under section 9(a)(2)’’. 
(c) ACTION TO ENJOIN OR RESTRAIN VIOLATIONS.— 
Section 6c(d) of such Act (7 U.S.C. 13a–1(d)) is amended 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01455
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1456 
by striking all that precedes paragraph (2) and inserting 
the following: 
‘‘(d) CIVIL PENALTIES.— 
‘‘(1) IN
GENERAL.—In any action brought 
under this section, the Commission may seek and 
the court shall have jurisdiction to impose, on a 
proper showing, on any person found in the action 
to have committed any violation— 
‘‘(A) a civil penalty in the amount of not 
more than the greater of $100,000 or triple the 
monetary gain to the person for each violation; 
or 
‘‘(B) in any case of manipulation or at-
tempted manipulation in violation of section 
6(c), 6(d), or 9(a)(2), a civil penalty in the 
amount of not more than the greater of 
$1,000,000 or triple the monetary gain to the 
person for each violation.’’. 
(d) VIOLATIONS GENERALLY.—Section 9(a) of such 
Act (7 U.S.C. 13(a)) is amended in the matter preceding 
paragraph (1)— 
(1) by striking ‘‘(or $500,000 in the case of a 
person who is an individual)’’; and 
(2) by striking ‘‘five years’’ and inserting ‘‘10 
years’’. 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01456
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1457 
SEC. 13104. AUTHORIZATION OF APPROPRIATIONS. 
Section 12(d) of the Commodity Exchange Act (7 
U.S.C. 16(d)) is amended to read as follows: 
‘‘(d) There are authorized to be appropriated such 
sums as are necessary to carry out this Act for each of 
the fiscal years 2008 through 2013.’’. 
SEC. 13105. TECHNICAL AND CONFORMING AMENDMENTS. 
(a) Section 4a(e) of the Commodity Exchange Act (7 
U.S.C. 6a(e)) is amended— 
(1) by inserting ‘‘or certified by a registered en-
tity pursuant to section 5c(c)(1)’’ after ‘‘approved by 
the Commission’’ ; and 
(2) by striking ‘‘section 9(c)’’ and inserting 
‘‘section 9(a)(5)’’. 
(b) Section 4f(c)(4)(B)(i) of such Act (7 U.S.C. 
6f(c)(4)(B)(i)) is amended by striking ‘‘compiled’’ and in-
serting ‘‘complied’’. 
(c) Section 4k of such Act (7 U.S.C. 6k) is amended 
by redesignating the second paragraph (5) as paragraph 
(6). 
(d) The Commodity Exchange Act is amended— 
(1) by redesignating the first section 4p (7 
U.S.C. 6o–1), as added by section 121 of the Com-
modity Futures Modernization Act of 2000, as sec-
tion 4q; and 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01457
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1458 
(2) by moving such section to after the second 
section 4p, as added by section 206 of Public Law 
93–446. 
(e) Subsections (a)(1) and (d)(1) of section 5c of such 
Act (7 U.S.C. 7a–2(a)(1), (d)(1)) are each amended by 
striking ‘‘5b(d)(2)’’ and inserting ‘‘5b(c)(2)’’. 
(f) Sections 5c(f) and 17(r) of such Act (7 U.S.C. 
7a–2(f), 21(r)) are each amended by striking ‘‘4d(3)’’ and 
inserting ‘‘4d(c)’’. 
(g) Section 8(a)(1) of such Act (7 U.S.C. 12(a)(1)) 
is amended in the matter following subparagraph (B)— 
(1) by striking ‘‘commenced’’ in the 2nd place 
it appears; and 
(2) by inserting ‘‘commenced’’ after ‘‘in a judi-
cial proceeding’’. 
(h) Section 9 of such Act (7 U.S.C. 13) is amended— 
(1) in subsection (f)(1), by striking the period 
and inserting ‘‘; or’’; and 
(2) by redesignating subsection (f) as sub-
section (e). 
(i) Section 22(a)(2) of such Act (7 U.S.C. 25(a)(2)) 
is amended by striking ‘‘5b(b)(1)(E)’’ and inserting 
‘‘5b(c)(2)(H)’’. 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01458
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1459 
(j) Section 1a(33)(A) of such Act (7 U.S.C. 
1a(33)(A)) is amended by striking ‘‘transactions’’ and all 
that follows and inserting ‘‘transactions— 
‘‘(i) by accepting bids or offers made 
by other participants that are open to mul-
tiple partipants in the facility or system; or 
‘‘(ii) through the interaction of mul-
tiple bids or multiple offers within a sys-
tem with a pre-determined non-discre-
tionary automated trade matching and exe-
cution algorithm.’’. 
(k) Section 14(d) of such Act (7 U.S.C. 18(d)) is 
amended— 
(1) by inserting ‘‘(1)’’ before ‘‘If’’; and 
(2) by adding after and below the end the fol-
lowing: 
‘‘(2) A reparation award shall be directly en-
forceable in district court as if it were a judgment 
pursuant to section 1963 of title 28, United States 
Code. This paragraph shall operate retroactively 
from the effective date of its enactment, and shall 
apply to all reparation awards for which a pro-
ceeding described in paragraph (1) is commenced 
within 3 years of the date of the Commission’s 
order.’’. 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01459
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1460 
SEC. 13106. PORTFOLIO MARGINING AND SECURITY INDEX 
ISSUES. 
(a) The Secretary of the Treasury, the Chairman of 
the Board of Governors of the Federal Reserve System, 
the Chairman of the Securities and Exchange Commis-
sion, and the Chairman of the Commodity Futures Trad-
ing Commission shall work to ensure that the Securities 
and Exchange Commission (SEC), the Commodity Fu-
tures Trading Commission (CFTC), or both, as appro-
priate, have taken the actions required under subsection 
(b). 
(b) The SEC, the CFTC, or both, as appropriate, 
shall take action under their existing authorities to per-
mit— 
(1) by September 30, 2009, risk-based portfolio 
margining for security options and security futures 
products (as defined in section 1a(32) of the Com-
modity Exchange Act); and 
(2) by June 30, 2009, the trading of futures on 
certain security indexes by resolving issues related to 
foreign security indexes. 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01460
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1461 
Subtitle B—Significant Price Dis-
covery Contracts on Exempt 
Commercial Markets 
SEC. 13201. SIGNIFICANT PRICE DISCOVERY CONTRACTS. 
(a) DEFINITIONS.—Section la of the Commodity Ex-
change Act (7 U.S.C. la) is amended— 
(1) by redesignating paragraph (33) as para-
graph (34); and 
(2) by inserting after paragraph (32) the fol-
lowing: 
‘‘(33) SIGNIFICANT
PRICE
DISCOVERY
CON-
TRACT.—The term ‘significant price discovery con-
tract’ means an agreement, contract, or transaction 
subject to section 2(h)(7).’’. 
(b) STANDARDS APPLICABLE TO SIGNIFICANT PRICE 
DISCOVERY CONTRACTS.—Section 2(h) of such Act (7 
U.S.C. 2(h)) is amended by adding at the end the fol-
lowing: 
‘‘(7) SIGNIFICANT
PRICE
DISCOVERY
CON-
TRACTS.— 
‘‘(A) IN
GENERAL.—An agreement, con-
tract, or transaction conducted in reliance on 
the exemption in paragraph (3) shall be subject 
to the provisions of subparagraphs (B) through 
(D), under such rules and regulations as the 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01461
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1462 
Commission shall promulgate, provided that the 
Commission determines, in its discretion, that 
the agreement, contract, or transaction per-
forms a significant price discovery function as 
described in subparagraph (B). 
‘‘(B) SIGNIFICANT PRICE DISCOVERY DE-
TERMINATION.—In making a determination 
whether an agreement, contract, or transaction 
performs a significant price discovery function, 
the Commission shall consider, as appropriate: 
‘‘(i) PRICE LINKAGE.—The extent to 
which the agreement, contract, or trans-
action uses or otherwise relies on a daily or 
final settlement price, or other major price 
parameter, of a contract or contracts listed 
for trading on or subject to the rules of a 
designated contract market or a derivatives 
transaction execution facility, or a signifi-
cant price discovery contract traded on an 
electronic trading facility, to value a posi-
tion, transfer or convert a position, cash or 
financially settle a position, or close out a 
position. 
‘‘(ii) 
ARBITRAGE.—The 
extent 
to 
which the price for the agreement, con-
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01462
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1463 
tract, or transaction is sufficiently related 
to the price of a contract or contracts list-
ed for trading on or subject to the rules of 
a designated contract market or derivatives 
transaction execution facility, or a signifi-
cant price discovery contract or contracts 
trading on or subject to the rules of an 
electronic trading facility, so as to permit 
market participants to effectively arbitrage 
between the markets by simultaneously 
maintaining positions or executing trades 
in the contracts on a frequent and recur-
ring basis. 
‘‘(iii) 
MATERIAL
PRICE
REF-
ERENCE.—The extent to which, on a fre-
quent and recurring basis, bids, offers, or 
transactions in a commodity are directly 
based on, or are determined by ref-
erencing, the prices generated by agree-
ments, contracts, or transactions being 
traded or executed on the electronic trad-
ing facility. 
‘‘(iv) MATERIAL LIQUIDITY.—The ex-
tent to which the volume of agreements, 
contracts, or transactions in the com-
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01463
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1464 
modity being traded on the electronic trad-
ing facility is sufficient to have a material 
effect on other agreements, contracts, or 
transactions listed for trading on or sub-
ject to the rules of a designated contract 
market, a derivatives transaction execution 
facility, or an electronic trading facility op-
erating in reliance on the exemption in 
paragraph (3). 
‘‘(v) OTHER
MATERIAL
FACTORS.— 
Such other material factors as the Com-
mission specifies by rule as relevant to de-
termine whether an agreement, contract, 
or transaction serves a significant price 
discovery function. 
‘‘(C) CORE
PRINCIPLES
APPLICABLE
TO 
SIGNIFICANT PRICE DISCOVERY CONTRACTS.— 
‘‘(i) 
IN
GENERAL.—An 
electronic 
trading facility on which significant price 
discovery contracts are traded or executed 
shall, with respect to those contracts, com-
ply with the core principles specified in this 
subparagraph. 
‘‘(ii) CORE
PRINCIPLES.—The elec-
tronic trading facility shall have reasonable 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01464
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1465 
discretion (including discretion to account 
for 
differences 
between 
cleared 
and 
uncleared significant price discovery con-
tracts) in establishing the manner in which 
it complies with the following core prin-
ciples: 
‘‘(I) CONTRACTS
NOT
READILY 
SUSCEPTIBLE
TO
MANIPULATION.— 
The electronic trading facility shall 
list only significant price discovery 
contracts that are not readily suscep-
tible to manipulation. 
‘‘(II) MONITORING
OF
TRAD-
ING.—The electronic trading facility 
shall monitor trading in significant 
price discovery contracts to prevent 
market manipulation, price distortion, 
and disruptions of the delivery or 
cash-settlement process through mar-
ket surveillance, compliance, and dis-
ciplinary practices and procedures, in-
cluding methods for conducting real- 
time monitoring of trading and com-
prehensive and accurate trade recon-
structions. 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01465
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1466 
‘‘(III) ABILITY
TO
OBTAIN
IN-
FORMATION.—The electronic trading 
facility shall— 
‘‘(aa) establish and enforce 
rules that will allow the electronic 
trading facility to obtain any nec-
essary information to perform 
any of the functions described in 
this subparagraph; 
‘‘(bb) provide the informa-
tion to the Commission upon re-
quest; and 
‘‘(cc) have the capacity to 
carry out such international in-
formation-sharing agreements as 
the Commission may require. 
‘‘(IV) POSITION LIMITATIONS OR 
ACCOUNTABILITY.—The 
electronic 
trading facility shall adopt, where nec-
essary and appropriate, position limi-
tations or position accountability for 
speculators in significant price dis-
covery contracts, taking into account 
positions in other agreements, con-
tracts, and transactions that are 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01466
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1467 
treated by a derivatives clearing orga-
nization, whether registered or not 
registered, as fungible with such sig-
nificant price discovery contracts to 
reduce the potential threat of market 
manipulation or congestion, especially 
during trading in the delivery month. 
‘‘(V) EMERGENCY AUTHORITY.— 
The electronic trading facility shall 
adopt rules to provide for the exercise 
of emergency authority, in consulta-
tion or cooperation with the Commis-
sion, where necessary and appro-
priate, including the authority— 
‘‘(aa) to liquidate open posi-
tions in a significant price dis-
covery contract; and 
‘‘(bb) to suspend or curtail 
trading in a significant price dis-
covery contract. 
‘‘(VI) DAILY
PUBLICATION
OF 
TRADING
INFORMATION.—The elec-
tronic trading facility shall make pub-
lic daily information on price, trading 
volume, and other trading data to the 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01467
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1468 
extent 
appropriate 
for 
significant 
price discovery contracts 
‘‘(VII) 
COMPLIANCE
WITH 
RULES.—The electronic trading facil-
ity shall monitor and enforce compli-
ance with any rules of the electronic 
trading facility applicable to signifi-
cant price discovery contracts, includ-
ing the terms and conditions of the 
contracts and any limitations on ac-
cess to the electronic trading facility 
with respect to the contracts. 
‘‘(VIII) CONFLICT
OF
INTER-
EST.—The electronic trading facility, 
with respect to significant price dis-
covery contracts, shall— 
‘‘(aa) establish and enforce 
rules to minimize conflicts of in-
terest 
in 
its 
decision-making 
process; and 
‘‘(bb) establish a process for 
resolving the conflicts of interest. 
‘‘(IX) 
ANTITRUST
CONSIDER-
ATIONS.—Unless necessary or appro-
priate to achieve the purposes of this 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01468
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1469 
Act, the electronic trading facility, 
with respect to significant price dis-
covery contracts, shall endeavor to 
avoid— 
‘‘(aa) adopting any rules or 
taking any actions that result in 
any unreasonable restraints of 
trade; or 
‘‘(bb) imposing any material 
anticompetitive burden on trad-
ing on the electronic trading fa-
cility. 
‘‘(D) IMPLEMENTATION.— 
‘‘(i) 
CLEARING.—The 
Commission 
shall take into consideration differences be-
tween cleared and uncleared significant 
price discovery contracts when reviewing 
the implementation of the core principles 
by an electronic trading facility. 
‘‘(ii) REVIEW.—As part of the Com-
mission’s continual monitoring and surveil-
lance activities, the Commission shall, not 
less frequently than annually, evaluate, as 
appropriate, all the agreements, contracts, 
or transactions conducted on an electronic 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01469
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1470 
trading facility in reliance on the exemp-
tion provided in paragraph (3) to deter-
mine whether they serve a significant price 
discovery function as described in subpara-
graph (B) of this paragraph.’’. 
SEC. 13202. LARGE TRADER REPORTING. 
(a) REPORTING
AND
RECORDKEEPING.—Section 
4g(a) of the Commodity Exchange Act (7 U.S.C. 6g(a)) 
is amended by inserting ‘‘, and in any significant price 
discovery contract traded or executed on an electronic 
trading facility or any agreement, contract, or transaction 
that is treated by a derivatives clearing organization, 
whether registered or not registered, as fungible with a 
significant price discovery contract’’ after ‘‘elsewhere’’. 
(b) REPORTS OF POSITIONS EQUAL TO OR IN EX-
CESS OF TRADING LIMITS.—Section 4i of such Act (7 
U.S.C. 6i) is amended— 
(1) by inserting ‘‘, or any significant price dis-
covery contract traded or executed on an electronic 
trading facility or any agreement, contract, or trans-
action that is treated by a derivatives clearing orga-
nization, whether registered or not registered, as 
fungible with a significant price discovery contract’’ 
after ‘‘subject to the rules of any contract market or 
derivatives transaction execution facility’’; and 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01470
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1471 
(2) in the matter following paragraph (2), by 
inserting ‘‘or electronic trading facility’’ after ‘‘sub-
ject to the rules of any other board of trade’’. 
SEC. 13203. CONFORMING AMENDMENTS. 
(a) Section 1a(12)(A)(x) of the Commodity Exchange 
Act (7 U.S.C. 1a(12)(A)(x)) is amended by inserting 
‘‘(other than an electronic trading facility with respect to 
a significant price discovery contract)’’ after ‘‘registered 
entity’’. 
(b) Section 1a(29) of such Act (7 U.S.C. 1a(29)) is 
amended— 
(1) in subparagraph (C), by striking ‘‘and’’ at 
the end; 
(2) in subparagraph (D), by striking the period 
and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(E) with respect to a contract that the 
Commission determines is a significant price 
discovery contract, any electronic trading facil-
ity on which the contract is executed or trad-
ed.’’. 
(c) Section 2(a)(1)(A) of such Act (7 U.S.C. 
2(a)(1)(A)) is amended by inserting after ‘‘future deliv-
ery’’ the following: ‘‘(including significant price discovery 
contracts)’’. 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01471
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1473 
the determination described in subparagraph (B) of para-
graph (7)’’ after ‘‘paragraph (4)’’. 
(g) Section 4a of such Act (7 U.S.C. 6a) is amend-
ed— 
(1) in subsection (a)— 
(A) in the first sentence, by inserting ‘‘, or 
on electronic trading facilities with respect to a 
significant price discovery contract’’ after ‘‘de-
rivatives transaction execution facilities’’; and 
(B) in the second sentence, by inserting ‘‘, 
or on an electronic trading facility with respect 
to a significant price discovery contract,’’ after 
‘‘derivatives transaction execution facility’’; and 
(2) in subsection (b)— 
(A) in paragraph (1), by inserting ‘‘or elec-
tronic trading facility with respect to a signifi-
cant price discovery contract’’ after ‘‘facility or 
facilities’’; and 
(B) in paragraph (2), by inserting ‘‘or elec-
tronic trading facility with respect to a signifi-
cant price discovery contract’’ after ‘‘derivatives 
transaction execution facility’’; and 
(3) in subsection (e)— 
(A) in the first sentence— 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01473
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1474 
(i) by inserting ‘‘or by any electronic 
trading facility’’ after ‘‘registered by the 
Commission’’; 
(ii) by inserting ‘‘or on an electronic 
trading facility’’ after ‘‘derivatives trans-
action execution facility’’ the second place 
it appears; and 
(iii) by inserting ‘‘or electronic trading 
facility’’ before ‘‘or such board of trade’’ 
each place it appears; and 
(B) in the second sentence, by inserting 
‘‘or electronic trading facility with respect to a 
significant price discovery contract’’ after ‘‘reg-
istered by the Commission’’. 
(h) Section 5a(d) of such Act (7 U.S.C. 7a(d)(1)) is 
amended— 
(1) by redesignating paragraphs (4) through 
(9) as paragraphs (5) through (10); and 
(2) by inserting after paragraph (3) the fol-
lowing: 
‘‘(4) POSITION
LIMITATIONS
OR
ACCOUNT-
ABILITY.—To reduce the potential threat of market 
manipulation or congestion, especially during trading 
in the delivery month, the derivatives transaction 
execution facility shall adopt position limits or posi-
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01474
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1475 
tion accountability for speculators, where necessary 
and appropriate for a contract, agreement or trans-
action with an underlying commodity that has a 
physically deliverable supply.’’. 
(i) Section 5c(a) of such Act (7 U.S.C. 7a–2(a)) is 
amended in paragraph (1) by inserting ‘‘, and section 
2(h)(7) with respect to significant price discovery con-
tracts,’’ after ‘‘, and 5b(d)(2)’’. 
(j) Section 5c(b) of such Act (7 U.S.C. 7a–2(b)) is 
amended— 
(1) by striking paragraph (1) and inserting the 
following: 
‘‘(1) IN GENERAL.—A contract market, deriva-
tives transaction execution facility, or electronic 
trading facility with respect to a significant price 
discovery contract may comply with any applicable 
core principle through delegation of any relevant 
function to a registered futures association or a reg-
istered entity that is not an electronic trading facil-
ity.’’; 
(2) in paragraph (2), by striking ‘‘contract 
market or derivatives transaction execution facility’’ 
and inserting ‘‘contract market, derivatives trans-
action execution facility, or electronic trading facil-
ity’’; and 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01475
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1476 
(3) in paragraph (3), by striking ‘‘contract 
market or derivatives transaction execution facility’’ 
each place it appears and inserting ‘‘contract mar-
ket, derivatives transaction execution facility, or 
electronic trading facility’’. 
(k) Section 5c(d)(1) of such Act (7 U.S.C. 7a– 
2(d)(1)) is amended by inserting ‘‘or 2(h)(7)(C) with re-
spect to a significant price discovery contract traded or 
executed on an electronic trading facility,’’ after 
‘‘5b(d)(2)’’. 
(l) Section 5e of such Act (7 U.S.C. 7b) is amended 
by inserting ‘‘, or revocation of the right of an electronic 
trading facility to rely on the exemption set forth in sec-
tion 2(h)(3) with respect to a significant price discovery 
contract,’’ after ‘‘revocation of designation as a registered 
entity’’. 
(m) Section 6(b) of the Commodity Exchange Act (7 
U.S.C. 8(b)) is amended by striking the first sentence and 
all that follows through ‘‘hearing on the record: Provided,’’ 
and inserting the following: 
‘‘The Commission is authorized to suspend for a pe-
riod not to exceed 6 months or to revoke the designation 
or registration of any contract market or derivatives trans-
action execution facility, or to revoke the right of an elec-
tronic trading facility to rely on the exemption set forth 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01476
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1477 
in section 2(h)(3) with respect to a significant price dis-
covery contract, on a showing that the contract market 
or derivatives transaction execution facility is not enforc-
ing or has not enforced its rules of government, made a 
condition of its designation or registration as set forth in 
sections 5 through 5b or section 5f, or that the contract 
market or derivatives transaction execution facility or elec-
tronic trading facility, or any director, officer, agent, or 
employee thereof, otherwise is violating or has violated any 
of the provisions of this Act or any of the rules, regula-
tions, or orders of the Commission thereunder. Such sus-
pension or revocation shall only be made after a notice 
to the officers of the contract market or derivatives trans-
action execution facility or electronic trading facility af-
fected and upon a hearing on the record: Provided,’’. 
(n) Section 22(b)(1) of such Act (7 U.S.C. 25(b)(1)) 
is amended by inserting ‘‘section 2(h)(7) or’’ before ‘‘sec-
tions 5’’. 
SEC. 13204. EFFECTIVE DATE. 
(a) IN GENERAL.—Except as provided in this section, 
this subtitle shall become effective on the date of enact-
ment of this Act. 
(b) SIGNIFICANT PRICE DISCOVERY STANDARDS 
RULEMAKING.— 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01477
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1478 
(1) The Commodity Futures Trading Commis-
sion shall— 
(A) not later than 180 days after the date 
of the enactment of this Act, issue a proposed 
rule regarding the implementation of section 
2(h)(7) of the Commodity Exchange Act; and 
(B) not later than 270 days after the date 
of enactment of this Act, issue a final rule re-
garding the implementation. 
(2) In its rulemaking pursuant to paragraph 
(1) of this subsection, the Commission shall include 
the standards, terms, and conditions under which an 
electronic trading facility will have the responsibility 
to notify the Commission that an agreement, con-
tract, or transaction conducted in reliance on the ex-
emption provided in section 2(h)(3) of the Com-
modity Exchange Act may perform a price discovery 
function. 
(c) SIGNIFICANT PRICE DISCOVERY DETERMINA-
TIONS.—With respect to any electronic trading facility op-
erating on the effective date of the final rule issued pursu-
ant to subsection (b)(1), the Commission shall complete 
a review of the agreements, contracts, and transactions 
of the facility not later than 180 days after that effective 
date to determine whether any such agreement, contract, 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01478
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1479 
or transaction performs a significant price discovery func-
tion. 
TITLE XIV—MISCELLANEOUS 
Subtitle A—Socially Disadvantaged 
Producers 
and 
Limited 
Re-
source Producers 
SEC. 14001. IMPROVED PROGRAM DELIVERY BY DEPART-
MENT OF AGRICULTURE ON INDIAN RES-
ERVATIONS. 
Section 2501(g)(1) of the Food, Agriculture, Con-
servation, and Trade Act of 1990 (7 U.S.C. 2279(g)(1)) 
is amended— 
(1) in the first sentence— 
(A) by striking ‘‘Agricultural Stabilization 
and Conservation Service, Soil Conservation 
Service, and Farmers Home Administration of-
fices’’ and inserting ‘‘Farm Service Agency and 
Natural Resources Conservation Service’’; and 
(B) by inserting ‘‘where there has been a 
need demonstrated’’ after ‘‘include’’; and 
(2) by striking the second sentence. 
SEC. 14002. FORECLOSURE. 
(a) IN GENERAL.—Section 331A of the Consolidated 
Farm and Rural Development Act (7 U.S.C. 1981a) is 
amended: 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01479
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1480 
(1) by inserting ‘‘(a)’’ after ‘‘SEC. 331A.’’; and 
(2) by adding at the end the following: 
‘‘(b) MORATORIUM.— 
‘‘(1) IN GENERAL.—Subject to the other provi-
sions of this subsection, effective beginning on the 
date of the enactment of this subsection, there shall 
be in effect a moratorium, with respect to farmer 
program loans made under subtitle A, B, or C, on 
all acceleration and foreclosure proceedings insti-
tuted by the Department of Agriculture against any 
farmer or rancher who— 
‘‘(A) has pending against the Department 
a claim of program discrimination that is ac-
cepted by the Department as valid; or 
‘‘(B) files a claim of program discrimina-
tion that is accepted by the Department as 
valid. 
‘‘(2) WAIVER OF INTEREST AND OFFSETS.— 
During the period of the moratorium, the Secretary 
shall waive the accrual of interest and offsets on all 
farmer program loans made under subtitle A, B, or 
C for which loan acceleration or foreclosure pro-
ceedings have been suspended under paragraph (1). 
‘‘(3) TERMINATION
OF
MORATORIUM.—The 
moratorium shall terminate with respect to a claim 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01480
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1481 
of discrimination by a farmer or rancher on the ear-
lier of— 
‘‘(A) the date the Secretary resolves the 
claim; or 
‘‘(B) if the farmer or rancher appeals the 
decision of the Secretary on the claim to a 
court of competent jurisdiction, the date that 
the court renders a final decision on the claim. 
‘‘(4) FAILURE
TO
PREVAIL.—If a farmer or 
rancher does not prevail on a claim of discrimination 
described in paragraph (1), the farmer or rancher 
shall be liable for any interest and offsets that ac-
crued during the period that loan acceleration or 
foreclosure proceedings have been suspended under 
paragraph (1).’’. 
(b) FORECLOSURE REPORT.— 
(1) IN GENERAL.—Not later than 1 year after 
the date of the enactment of this Act, the Inspector 
General of the Department of Agriculture (referred 
to in this subsection as the ‘‘Inspector General’’) 
shall determine whether decisions of the Department 
to implement foreclosure proceedings with respect to 
farmer program loans made under subtitle A, B, or 
C of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1922 et seq.) to socially disadvan-
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01481
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1482 
taged farmers or ranchers during the 5-year period 
preceding the date of the enactment of this Act were 
consistent and in conformity with the applicable laws 
(including regulations) governing loan foreclosures. 
(2) REPORT.—Not later than 1 year after the 
date of the enactment of this Act, the Inspector 
General shall submit to the Committee on Agri-
culture of the House of Representatives and the 
Committee on Agriculture, Nutrition, and Forestry 
of the Senate a report that describes the determina-
tion of the Inspector General under paragraph (1). 
SEC. 14003. RECEIPT FOR SERVICE OR DENIAL OF SERVICE 
FROM 
CERTAIN 
DEPARTMENT 
OF 
AGRI-
CULTURE AGENCIES. 
Section 2501A of the Food, Agriculture, Conserva-
tion, and Trade Act of 1990 (7 U.S.C. 2279–1) is amend-
ed by adding at the end the following new subsection: 
‘‘(e) RECEIPT FOR SERVICE OR DENIAL OF SERV-
ICE.—In any case in which a current or prospective pro-
ducer or landowner, in person or in writing, requests from 
the Farm Service Agency, the Natural Resources Con-
servation Service, or an agency of the Rural Development 
Mission Area any benefit or service offered by the Depart-
ment to agricultural producers or landowners and, at the 
time of the request, also requests a receipt, the Secretary 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01482
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1483 
shall issue, on the date of the request, a receipt to the 
producer or landowner that contains— 
‘‘(1) the date, place, and subject of the request; 
and 
‘‘(2) the action taken, not taken, or rec-
ommended to the producer or landowner.’’. 
SEC. 14004. OUTREACH AND TECHNICAL ASSISTANCE FOR 
SOCIALLY 
DISADVANTAGED 
FARMERS 
OR 
RANCHERS. 
(a) OUTREACH AND TECHNICAL ASSISTANCE PRO-
GRAM.— 
(1) PROGRAM REQUIREMENTS.—Paragraph (2) 
of section 2501(a) of the Food, Agriculture, Con-
servation, and Trade Act of 1990 (7 U.S.C. 
2279(a)) is amended to read as follows: 
‘‘(2) REQUIREMENTS.—The outreach and tech-
nical assistance program under paragraph (1) shall 
be used exclusively— 
‘‘(A) to enhance coordination of the out-
reach, technical assistance, and education ef-
forts authorized under agriculture programs; 
and 
‘‘(B) to assist the Secretary in— 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01483
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1484 
‘‘(i) reaching current and prospective 
socially disadvantaged farmers or ranchers 
in a linguistically appropriate manner; and 
‘‘(ii) improving the participation of 
those farmers and ranchers in Department 
programs, 
as 
reported 
under 
section 
2501A.’’. 
(2) GRANTS
AND
CONTRACTS
UNDER
PRO-
GRAM.—Section 2501(a)(3) of the Food, Agri-
culture, Conservation, and Trade Act of 1990 (7 
U.S.C. 2279(a)(3)) is amended— 
(A) in subparagraph (A), by striking ‘‘enti-
ty to provide information’’ and inserting ‘‘entity 
that has demonstrated an ability to carry out 
the requirements described in paragraph (2) to 
provide outreach’’; and 
(B) by adding at the end the following new 
subparagraph: 
‘‘(D) REPORT.—The Secretary shall sub-
mit to the Committee on Agriculture of the 
House of Representatives and the Committee 
on Agriculture, Nutrition, and Forestry of the 
Senate, and make publicly available, an annual 
report that includes a list of the following: 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01484
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1485 
‘‘(i) The recipients of funds made 
available under the program. 
‘‘(ii) The activities undertaken and 
services provided. 
‘‘(iii) The number of current and pro-
spective socially disadvantaged farmers or 
ranchers served and outcomes of such serv-
ice. 
‘‘(iv) The problems and barriers iden-
tified by entities in trying to increase par-
ticipation by current and prospective so-
cially disadvantaged farmers or ranchers.’’. 
(3) FUNDING
AND
LIMITATION
ON
USE
OF 
FUNDS.—Section 2501(a)(4) of the Food, Agri-
culture, Conservation, and Trade Act of 1990 (7 
U.S.C. 2279(a)(4)) is amended— 
(A) by striking subparagraph (A) and in-
serting the following new subparagraph: 
‘‘(A) IN GENERAL.—Of the funds of the 
Commodity Credit Corporation, the Secretary 
shall make available to carry out this section— 
‘‘(i) $15,000,000 for fiscal year 2009; 
and 
‘‘(ii) $20,000,000 for each of fiscal 
years 2010 through 2012.’’. 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01485
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1486 
(B) by adding at the end the following new 
subparagraph: 
‘‘(C) LIMITATION ON USE OF FUNDS FOR 
ADMINISTRATIVE EXPENSES.—Not more than 5 
percent of the amounts made available under 
subparagraph (A) for a fiscal year may be used 
for expenses related to administering the pro-
gram under this section.’’. 
(b) 
ELIGIBLE
ENTITY
DEFINED.—Section 
2501(e)(5)(A)(ii) of the Food, Agriculture, Conservation, 
and Trade Act of 1990 (7 U.S.C. 2279(e)(5)(A)(ii)) is 
amended by striking ‘‘work with socially disadvantaged 
farmers or ranchers during the 2-year period’’ and insert-
ing ‘‘work with, and on behalf of, socially disadvantaged 
farmers or ranchers during the 3-year period’’. 
SEC. 14005. ACCURATE DOCUMENTATION IN THE CENSUS 
OF AGRICULTURE AND CERTAIN STUDIES. 
Section 2501 of the Food, Agriculture, Conservation, 
and Trade Act of 1990 (7 U.S.C. 2279) is amended by 
adding at the end the following: 
‘‘(h) ACCURATE DOCUMENTATION.—The Secretary 
shall ensure, to the maximum extent practicable, that the 
Census of Agriculture and studies carried out by the Eco-
nomic Research Service accurately document the number, 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01486
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1487 
location, and economic contributions of socially disadvan-
taged farmers or ranchers in agricultural production.’’. 
SEC. 14006. TRANSPARENCY AND ACCOUNTABILITY FOR SO-
CIALLY 
DISADVANTAGED 
FARMERS 
OR 
RANCHERS. 
Section 2501A of the Food, Agriculture, Conserva-
tion, and Trade Act of 1990 (7 U.S.C. 2279–1) is amend-
ed by striking subsection (c) and inserting the following 
new subsections: 
‘‘(c) COMPILATION
OF PROGRAM PARTICIPATION 
DATA.— 
‘‘(1) ANNUAL REQUIREMENT.—For each county 
and State in the United States, the Secretary of Ag-
riculture (referred to in this section as the ‘Sec-
retary’) shall annually compile program application 
and participation rate data regarding socially dis-
advantaged farmers or ranchers by computing for 
each program of the Department of Agriculture that 
serves agricultural producers and landowners— 
‘‘(A) raw numbers of applicants and par-
ticipants by race, ethnicity, and gender, subject 
to appropriate privacy protections, as deter-
mined by the Secretary; and 
‘‘(B) the application and participation rate, 
by race, ethnicity, and gender, as a percentage 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01487
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1488 
of the total participation rate of all agricultural 
producers and landowners. 
‘‘(2) AUTHORITY
TO
COLLECT
DATA.—The 
heads of the agencies of the Department of Agri-
culture shall collect and transmit to the Secretary 
any data, including data on race, gender, and eth-
nicity, that the Secretary determines to be necessary 
to carry out paragraph (1). 
‘‘(3) REPORT.—Using the technologies and sys-
tems of the National Agricultural Statistics Service, 
the Secretary shall compile and present the data 
compiled under paragraph (1) for each program de-
scribed in that paragraph in a manner that includes 
the raw numbers and participation rates for— 
‘‘(A) the entire United States; 
‘‘(B) each State; and 
‘‘(C) each county in each State. 
‘‘(4) PUBLIC AVAILABILITY OF REPORT.—The 
Secretary shall maintain and make readily available 
to the public, via website and otherwise in electronic 
and paper form, the report described in paragraph 
(3). 
‘‘(d) LIMITATIONS ON USE OF DATA.— 
‘‘(1) PRIVACY PROTECTIONS.—In carrying out 
this section, the Secretary shall not disclose the 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01488
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1489 
names or individual data of any program partici-
pant. 
‘‘(2) AUTHORIZED USES.—The data under this 
section shall be used exclusively for the purposes de-
scribed in subsection (a). 
‘‘(3) LIMITATION.—Except as otherwise pro-
vided, the data under this section shall not be used 
for the evaluation of individual applications for as-
sistance.’’. 
SEC. 14007. OVERSIGHT AND COMPLIANCE. 
The Secretary, acting through the Assistant Sec-
retary for Civil Rights of the Department of Agriculture, 
shall use the reports described in subsection (c) of section 
2501A of the Food, Agriculture, Conservation, and Trade 
Act of 1990 (7 U.S.C. 2279–1), as amended by section 
14006, in the conduct of oversight and evaluation of civil 
rights compliance. 
SEC. 14008. MINORITY FARMER ADVISORY COMMITTEE. 
(a) ESTABLISHMENT.—Not later than 18 months 
after the date of the enactment of this Act, the Secretary 
of Agriculture shall establish an advisory committee, to 
be known as the ‘‘Advisory Committee on Minority Farm-
ers’’ (in this section referred to as the ‘‘Committee’’). 
(b) DUTIES.—The Committee shall provide advice to 
the Secretary on— 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01489
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1490 
(1) the implementation of section 2501 of the 
Food, Agriculture, Conservation, and Trade Act of 
1990 (7 U.S.C. 2279); 
(2) methods of maximizing the participation of 
minority farmers and ranchers in Department of Ag-
riculture programs; and 
(3) civil rights activities within the Department 
as such activities relate to participants in such pro-
grams. 
(c) MEMBERSHIP.— 
(1) IN
GENERAL.—The Committee shall be 
composed of not more than 15 members, who shall 
be appointed by the Secretary, and shall include— 
(A) not less than four socially disadvan-
taged farmers or ranchers (as defined in section 
2501(e)(2) of the Food, Agriculture, Conserva-
tion, and Trade Act of 1990 (7 U.S.C. 
2279(e)(2))); 
(B) not less than two representatives of 
nonprofit organizations with a history of work-
ing with minority farmers and ranchers; 
(C) not less than two civil rights profes-
sionals; 
(D) not less than two representatives of in-
stitutions of higher education with dem-
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01490
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1491 
onstrated experience working with minority 
farmers and ranchers; and 
(E) such other persons as the Secretary 
considers appropriate. 
(2) EX-OFFICIO MEMBERS.—The Secretary may 
appoint such employees of the Department of Agri-
culture as the Secretary considers appropriate to 
serve as ex-officio members of the Committee. 
SEC. 14009. NATIONAL APPEALS DIVISION. 
Section 280 of the Department of Agriculture Reor-
ganization Act of 1994 (7 U.S.C. 7000) is amended— 
(1) by striking ‘‘On the return’’ and inserting 
the following: 
‘‘(a) IN GENERAL.—On the return’’; and 
(2) by adding at the end the following: 
‘‘(b) REPORTS.— 
‘‘(1) IN GENERAL.—Not later than 180 days 
after the date of the enactment of this subsection, 
and every 180 days thereafter, the head of each 
agency shall submit to the Committee on Agriculture 
of the House of Representatives and the Committee 
on Agriculture, Nutrition, and Forestry of the Sen-
ate, and publish on the website of the Department, 
a report that includes— 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01491
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1492 
‘‘(A) a description of all cases returned to 
the agency during the period covered by the re-
port pursuant to a final determination of the 
Division; 
‘‘(B) the status of implementation of each 
final determination; and 
‘‘(C) if the final determination has not 
been implemented— 
‘‘(i) the reason that the final deter-
mination has not been implemented; and 
‘‘(ii) the projected date of implemen-
tation of the final determination. 
‘‘(2) UPDATES.—Each month, the head of each 
agency shall publish on the website of the Depart-
ment any updates to the reports submitted under 
paragraph (1).’’. 
SEC. 14010. REPORT OF CIVIL RIGHTS COMPLAINTS, RESO-
LUTIONS, AND ACTIONS. 
Each year, the Secretary shall— 
(1) prepare a report that describes, for each 
agency of the Department of Agriculture— 
(A) the number of civil rights complaints 
filed that relate to the agency, including wheth-
er a complaint is a program complaint or an 
employment complaint; 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01492
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1493 
(B) the length of time the agency took to 
process each civil rights complaint; 
(C) the number of proceedings brought 
against the agency, including the number of 
complaints described in paragraph (1) that were 
resolved with a finding of discrimination; and 
(D) the number and type of personnel ac-
tions taken by the agency following resolution 
of civil rights complaints; 
(2) submit to the Committee on Agriculture of 
the House of Representatives and the Committee on 
Agriculture, Nutrition, and Forestry of the Senate a 
copy of the report; and 
(3) make the report available to the public by 
posting the report on the website of the Department. 
SEC. 14011. SENSE OF CONGRESS RELATING TO CLAIMS 
BROUGHT 
BY 
SOCIALLY 
DISADVANTAGED 
FARMERS OR RANCHERS. 
It is the sense of Congress that all pending claims 
and class actions brought against the Department of Agri-
culture by socially disadvantaged farmers or ranchers (as 
defined in section 355(e) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 2003(e)), including Na-
tive American, Hispanic, and female farmers or ranchers, 
based on racial, ethnic, or gender discrimination in farm 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01493
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1494 
program participation should be resolved in an expeditious 
and just manner. 
SEC. 14012. DETERMINATION ON MERITS OF PIGFORD 
CLAIMS. 
(a) DEFINITIONS.—In this section: 
(1) CONSENT DECREE.—The term ‘‘consent de-
cree’’ means the consent decree in the case of 
Pigford v. Glickman, approved by the United States 
District Court for the District of Columbia on April 
14, 1999. 
(2) DEPARTMENT.—The term ‘‘Department’’ 
means the Department of Agriculture. 
(3) PIGFORD
CLAIM.—The term ‘‘Pigford 
claim’’ means a discrimination complaint, as defined 
by section 1(h) of the consent decree and docu-
mented under section 5(b) of the consent decree. 
(4) PIGFORD CLAIMANT.—The term ‘‘Pigford 
claimant’’ means an individual who previously sub-
mitted a late-filing request under section 5(g) of the 
consent decree. 
(b) DETERMINATION
ON
MERITS.—Any Pigford 
claimant who has not previously obtained a determination 
on the merits of a Pigford claim may, in a civil action 
brought in the United States District Court for the Dis-
trict of Columbia, obtain that determination. 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01494
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1495 
(c) LIMITATION.— 
(1) IN GENERAL.—Subject to paragraph (2), all 
payments or debt relief (including any limitation on 
foreclosure under subsection (h)) shall be made ex-
clusively from funds made available under subsection 
(i). 
(2) MAXIMUM AMOUNT.—The total amount of 
payments and debt relief pursuant to actions com-
menced under subsection (b) shall not exceed 
$100,000,000. 
(d) INTENT OF CONGRESS AS TO REMEDIAL NATURE 
OF SECTION.—It is the intent of Congress that this sec-
tion be liberally construed so as to effectuate its remedial 
purpose of giving a full determination on the merits for 
each Pigford claim previously denied that determination. 
(e) LOAN DATA.— 
(1) REPORT
TO
PERSON
SUBMITTING
PETI-
TION.— 
(A) IN
GENERAL.—Not later than 120 
days after the Secretary receives notice of a 
complaint filed by a claimant under subsection 
(b), the Secretary shall provide to the claimant 
a report on farm credit loans and noncredit 
benefits, as appropriate, made within the claim-
ant’s county (or if no documents are found, 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01495
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1496 
within an adjacent county as determined by the 
claimant), by the Department during the period 
beginning on January 1 of the year preceding 
the period covered by the complaint and ending 
on December 31 of the year following the pe-
riod. 
(B) REQUIREMENTS.—A report under sub-
paragraph (A) shall contain information on all 
persons whose application for a loan or benefit 
was accepted, including— 
(i) the race of the applicant; 
(ii) the date of application; 
(iii) the date of the loan or benefit de-
cision, as appropriate; 
(iv) the location of the office making 
the loan or benefit decision, as appropriate; 
(v) all data relevant to the decision-
making process for the loan or benefit, as 
appropriate; and 
(vi) all data relevant to the servicing 
of the loan or benefit, as appropriate. 
(2) NO PERSONALLY IDENTIFIABLE INFORMA-
TION.—The reports provided pursuant to paragraph 
(1) shall not contain any information that would 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01496
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1497 
identify any person who applied for a loan from the 
Department. 
(3) REPORTING DEADLINE.— 
(A) IN GENERAL.—The Secretary shall— 
(i) provide to claimants the reports re-
quired under paragraph (1) as quickly as 
practicable after the Secretary receives no-
tice of a complaint filed by a claimant 
under subsection (b); and 
(ii) devote such resources of the De-
partment as are necessary to make pro-
viding the reports expeditiously a high pri-
ority of the Department. 
(B) EXTENSION.—A court may extend the 
deadline for providing the report required in a 
particular case under paragraph (1) if the Sec-
retary establishes that meeting the deadline is 
not feasible and demonstrates a continuing ef-
fort and commitment to provide the required re-
port expeditiously. 
(f) EXPEDITED RESOLUTIONS AUTHORIZED.— 
(1) IN
GENERAL.—Any person filing a com-
plaint under this section for discrimination in the 
application for, or making or servicing of, a farm 
loan, at the discretion of the person, may seek liq-
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01497
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1498 
uidated damages of $50,000, discharge of the debt 
that was incurred under, or affected by, the 1 or 
more programs that were the subject of the 1 or 
more discrimination claims that are the subject of 
the person’s complaint, and a tax payment in the 
amount equal to 25 percent of the liquidated dam-
ages and loan principal discharged, in which case— 
(A) if only such damages, debt discharge, 
and tax payment are sought, the complainant 
shall be able to prove the case of the complain-
ant by substantial evidence (as defined in sec-
tion 1(l) of the consent decree); and 
(B) the court shall decide the case based 
on a review of documents submitted by the 
complainant and defendant relevant to the 
issues of liability and damages. 
(2) NONCREDIT CLAIMS.— 
(A) STANDARD.—In any case in which a 
claimant asserts a noncredit claim under a ben-
efit program of the Department, the court shall 
determine the merits of the claim in accordance 
with section 9(b)(i) of the consent decree. 
(B) RELIEF.—A claimant who prevails on 
a claim of discrimination involving a noncredit 
benefit program of the Department shall be en-
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01498
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1499 
titled to a payment by the Department in a 
total amount of $3,000, without regard to the 
number of such claims on which the claimant 
prevails. 
(g) ACTUAL DAMAGES.—A claimant who files a claim 
under this section for discrimination under subsection (b) 
but not under subsection (f) and who prevails on the claim 
shall be entitled to actual damages sustained by the claim-
ant. 
(h) 
LIMITATION
ON
FORECLOSURES.—Notwith-
standing any other provision of law, during the pendency 
of a Pigford claim, the Secretary may not begin accelera-
tion on or foreclosure of a loan if— 
(1) the borrower is a Pigford claimant; and 
(2) makes a prima facie case in an appropriate 
administrative proceeding that the acceleration or 
foreclosure is related to a Pigford claim. 
(i) FUNDING.— 
(1) IN GENERAL.—Of the funds of the Com-
modity Credit Corporation, the Secretary shall make 
available for payments and debt relief in satisfaction 
of claims against the United States under subsection 
(b) and for any actions under subsection (g) 
$100,000,000 for fiscal year 2008, to remain avail-
able until expended. 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01499
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1500 
(2) AUTHORIZATION OF APPROPRIATIONS.—In 
addition to funds made available under paragraph 
(1), there are authorized to be appropriated such 
sums as are necessary to carry out this section. 
(j) REPORTING REQUIREMENTS.— 
(1) IN
GENERAL.—Not later than 180 days 
after the date of the enactment of this Act and every 
180 days thereafter until the funds made available 
under subsection (i) are depleted, the Secretary shall 
submit to the Committee on the Judiciary of the 
House of Representatives and the Committee on the 
Judiciary of the Senate a report that describes the 
status of available funds under subsection (i) and 
the number of pending claims under subsection (f). 
(2) DEPLETION OF FUNDS REPORT.—In addi-
tion to the reports required under paragraph (1), the 
Secretary shall submit to the Committee on the Ju-
diciary of the House of Representatives and the 
Committee on the Judiciary of the Senate a report 
that notifies the Committees when 75 percent of the 
funds made available under subsection (i)(1) have 
been depleted. 
(k) TERMINATION OF AUTHORITY.—The authority to 
file a claim under this section terminates 2 years after 
the date of the enactment of this Act. 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01500
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1501 
SEC. 14013. OFFICE OF ADVOCACY AND OUTREACH. 
(a) IN GENERAL.—The Department of Agriculture 
Reorganization Act of 1994 is amended by inserting after 
section 226A (7 U.S.C. 6933) the following: 
‘‘SEC. 226B. OFFICE OF ADVOCACY AND OUTREACH. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) BEGINNING FARMER OR RANCHER.—The 
term ‘beginning farmer or rancher’ has the meaning 
given the term in section 343(a) of the Consolidated 
Farm and Rural Development Act (7 U.S.C. 
1991(a)). 
‘‘(2) OFFICE.—The term ‘Office’ means the Of-
fice of Advocacy and Outreach established under this 
section. 
‘‘(3) SOCIALLY
DISADVANTAGED
FARMER
OR 
RANCHER.—The term ‘socially disadvantaged farmer 
or rancher’ has the meaning given the term in sec-
tion 2501(e) of the Food, Agriculture, Conservation, 
and Trade Act of 1990 (7 U.S.C. 2279(e)). 
‘‘(b) ESTABLISHMENT AND PURPOSE.— 
‘‘(1) IN GENERAL.—The Secretary shall estab-
lish within the executive operations of the Depart-
ment an office to be known as the ‘Office of Advo-
cacy and Outreach’— 
‘‘(A) to improve access to programs of the 
Department; and 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01501
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1502 
‘‘(B) to improve the viability and profit-
ability of— 
‘‘(i) small farms and ranches; 
‘‘(ii) beginning farmers or ranchers; 
and 
‘‘(iii) socially disadvantaged farmers 
or ranchers. 
‘‘(2) DIRECTOR.—The Office shall be headed by 
a Director, to be appointed by the Secretary from 
among the competitive service. 
‘‘(c) DUTIES.—The duties of the Office shall be to 
ensure small farms and ranches, beginning farmers or 
ranchers, and socially disadvantaged farmers or ranchers 
access to, and equitable participation in, programs and 
services of the Department by— 
‘‘(1) establishing and monitoring the goals and 
objectives of the Department to increase participa-
tion in programs of the Department by small, begin-
ning, or socially disadvantaged farmers or ranchers; 
‘‘(2) assessing the effectiveness of Department 
outreach programs; 
‘‘(3) developing and implementing a plan to co-
ordinate outreach activities and services provided by 
the Department; 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01502
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1503 
‘‘(4) providing input to the agencies and offices 
on programmatic and policy decisions; 
‘‘(5) measuring outcomes of the programs and 
activities of the Department on small farms and 
ranches, beginning farmers or ranchers, and socially 
disadvantaged farmers or ranchers programs; 
‘‘(6) recommending new initiatives and pro-
grams to the Secretary; and 
‘‘(7) carrying out any other related duties that 
the Secretary determines to be appropriate. 
‘‘(d) 
SOCIALLY
DISADVANTAGED
FARMERS 
GROUP.— 
‘‘(1) ESTABLISHMENT.—The Secretary shall es-
tablish within the Office the Socially Disadvantaged 
Farmers Group. 
‘‘(2) OUTREACH
AND
ASSISTANCE.—The So-
cially Disadvantaged Farmers Group— 
‘‘(A) shall carry out section 2501 of the 
Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 2279); and 
‘‘(B) in the case of activities described in 
section 2501(a) of that Act, may conduct such 
activities through other agencies and offices of 
the Department. 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01503
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1504 
‘‘(3) SOCIALLY DISADVANTAGED FARMERS AND 
FARMWORKERS.—The Socially Disadvantaged Farm-
ers Group shall oversee the operations of— 
‘‘(A) the Advisory Committee on Minority 
Farmers established under section 14009 of the 
Food, Conservation, and Energy Act of 2008; 
and 
‘‘(B) the position of Farmworker Coordi-
nator established under subsection (f). 
‘‘(4) OTHER DUTIES.— 
‘‘(A) IN
GENERAL.—The Socially Dis-
advantaged Farmers Group may carry out 
other duties to improve access to, and participa-
tion in, programs of the Department by socially 
disadvantaged farmers or ranchers, as deter-
mined by the Secretary. 
‘‘(B) OFFICE OF OUTREACH AND DIVER-
SITY.—The Office of Advocacy and Outreach 
shall carry out the functions and duties of the 
Office of Outreach and Diversity carried out by 
the Assistant Secretary for Civil Rights as such 
functions and duties existed immediately before 
the date of the enactment of this section. 
‘‘(e) SMALL FARMS AND BEGINNING FARMERS AND 
RANCHERS GROUP.— 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01504
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1505 
‘‘(1) ESTABLISHMENT.—The Secretary shall es-
tablish within the Office the Small Farms and Be-
ginning Farmers and Ranchers Group. 
‘‘(2) DUTIES.— 
‘‘(A) 
OVERSEE
OFFICES.—The 
Small 
Farms and Beginning Farmers and Ranchers 
Group shall oversee the operations of the Office 
of Small Farms Coordination established by 
Departmental Regulation 9700-1 (August 3, 
2006). 
‘‘(B) BEGINNING FARMER AND RANCHER 
DEVELOPMENT
PROGRAM.—The Small Farms 
and Beginning Farmers and Ranchers Group 
shall consult with the National Institute for 
Food and Agriculture on the administration of 
the beginning farmer and rancher development 
program established under section 7405 of the 
Farm Security and Rural Investment Act of 
2002 (7 U.S.C. 3319f). 
‘‘(C) ADVISORY
COMMITTEE
FOR
BEGIN-
NING
FARMERS
AND
RANCHERS.—The Small 
Farms and Beginning Farmers and Ranchers 
Group shall coordinate the activities of the 
Group with the Advisory Committee for Begin-
ning Farmers and Ranchers established under 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01505
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1506 
section 5(b) of the Agricultural Credit Improve-
ment Act of 1992 (7 U.S.C. 1621 note; Public 
Law 102–554). 
‘‘(D) OTHER DUTIES.—The Small Farms 
and Beginning Farmers and Ranchers Group 
may carry out other duties to improve access 
to, and participation in, programs of the De-
partment by small farms and ranches and be-
ginning farmers or ranchers, as determined by 
the Secretary. 
‘‘(f) FARMWORKER COORDINATOR.— 
‘‘(1) ESTABLISHMENT.—The Secretary shall es-
tablish within the Office the position of Farmworker 
Coordinator (referred to in this subsection as the 
‘Coordinator’). 
‘‘(2) DUTIES.—The Secretary shall delegate to 
the Coordinator responsibility for the following: 
‘‘(A) Assisting in administering the pro-
gram established by section 2281 of the Food, 
Agriculture, Conservation, and Trade Act of 
1990 (42 U.S.C. 5177a). 
‘‘(B) Serving as a liaison to community- 
based nonprofit organizations that represent 
and have demonstrated experience serving low- 
income migrant and seasonal farmworkers. 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01506
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1507 
‘‘(C) Coordinating with the Department, 
other Federal agencies, and State and local gov-
ernments to ensure that farmworker needs are 
assessed and met during declared disasters and 
other emergencies. 
‘‘(D) Consulting within the Office and with 
other entities to better integrate farmworker 
perspectives, concerns, and interests into the 
ongoing programs of the Department. 
‘‘(E) Consulting with appropriate institu-
tions on research, program improvements, or 
agricultural education opportunities that assist 
low-income and migrant seasonal farmworkers. 
‘‘(F) Assisting farmworkers in becoming 
agricultural producers or landowners. 
‘‘(3) AUTHORIZATION
OF
APPROPRIATIONS.— 
There are authorized to be appropriated such sums 
as are necessary to carry out this subsection for 
each of fiscal years 2009 through 2012.’’. 
(b) CONFORMING AMENDMENT.—Section 296(b) of 
the Department of Agriculture Reorganization Act of 
1994 (7 U.S.C. 7014(b)), as amended by section 7511(b), 
is further amended— 
(1) in paragraph (5), by striking ‘‘; or’’ and in-
serting ‘‘;’’; 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01507
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1508 
(2) in paragraph (6), by striking the period and 
inserting ‘‘; or’’; and 
(3) by adding at the end the following new 
paragraph: 
‘‘(7) the authority of the Secretary to establish 
in the Department the Office of Advocacy and Out-
reach in accordance with section 226B.’’. 
Subtitle B—Agricultural Security 
SEC. 14101. SHORT TITLE. 
This subtitle may be cited as the ‘‘Agricultural Secu-
rity Improvement Act of 2008’’. 
SEC. 14102. DEFINITIONS. 
In this subtitle: 
(1) AGENT.—The term ‘‘agent’’ means a nu-
clear, biological, chemical, or radiological substance 
that causes agricultural disease or the adulteration 
of products regulated by the Secretary of Agri-
culture under any provision of law. 
(2) AGRICULTURAL
BIOSECURITY.—The term 
‘‘agricultural biosecurity’’ means protection from an 
agent that poses a threat to— 
(A) plant or animal health; 
(B) public health as it relates to the adul-
teration of products regulated by the Secretary 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01508
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1509 
of Agriculture under any provision of law that 
is caused by exposure to an agent; or 
(C) the environment as it relates to agri-
culture facilities, farmland, and air and water 
within the immediate vicinity of an area associ-
ated with an agricultural disease or outbreak. 
(3) AGRICULTURAL
COUNTERMEASURE.—The 
term ‘‘agricultural countermeasure’’— 
(A) means a product, practice, or tech-
nology that is intended to enhance or maintain 
the agricultural biosecurity of the United 
States; and 
(B) does not include a product, practice, or 
technology used solely in response to a human 
medical incident or public health emergency not 
related to agriculture. 
(4) AGRICULTURAL DISEASE.—The term ‘‘agri-
cultural disease’’ has the meaning given the term by 
the Secretary. 
(5) AGRICULTURAL
DISEASE
EMERGENCY.— 
The term ‘‘agricultural disease emergency’’ means 
an incident of agricultural disease that requires 
prompt action to prevent significant damage to peo-
ple, plants, or animals. 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01509
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1510 
(6) 
AGROTERRORIST
ACT.—The 
term 
‘‘agroterrorist act’’ means an act that— 
(A) causes or attempts to cause— 
(i) damage to agriculture; or 
(ii) injury to a person associated with 
agriculture; and 
(B) is committed or appears to be com-
mitted with the intent to— 
(i) intimidate or coerce a civilian pop-
ulation; or 
(ii) disrupt the agricultural industry 
in order to influence the policy of a govern-
ment by intimidation or coercion. 
(7) ANIMAL.—The term ‘‘animal’’ has the 
meaning given the term in section 10403 of the Ani-
mal Health Protection Act of 2002 (7 U.S.C. 8302). 
(8) DEPARTMENT.—The term ‘‘Department’’ 
means the Department of Agriculture. 
(9) DEVELOPMENT.—The term ‘‘development’’ 
means— 
(A) research leading to the identification of 
products or technologies intended for use as ag-
ricultural countermeasures to protect animal 
health; 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01510
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1511 
(B) the formulation, production, and sub-
sequent modification of those products or tech-
nologies; 
(C) the conduct of in vitro and in vivo 
studies; 
(D) the conduct of field, efficacy, and safe-
ty studies; 
(E) the preparation of an application for 
marketing approval for submission to an appli-
cable agency; or 
(F) other actions taken by an applicable 
agency in a case in which an agricultural coun-
termeasure is procured or used prior to 
issuance of a license or other form of Federal 
Government approval. 
(10) PLANT.—The term ‘‘plant’’ has the mean-
ing given the term in section 411 of the Plant Pro-
tection Act of 2000 (7 U.S.C. 7702). 
(11) QUALIFIED
AGRICULTURAL
COUNTER-
MEASURE.—The term ‘‘qualified agricultural coun-
termeasure’’ means an agricultural countermeasure 
that the Secretary, in consultation with the Sec-
retary of Homeland Security, determines to be a pri-
ority in order to address an agricultural biosecurity 
threat. 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01511
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1512 
CHAPTER 1—AGRICULTURAL SECURITY 
SEC. 14111. OFFICE OF HOMELAND SECURITY. 
(a) ESTABLISHMENT.—There is established within 
the Department the Office of Homeland Security (in this 
section referred to as the ‘‘Office’’). 
(b) DIRECTOR.—The Office shall be headed by a Di-
rector of Homeland Security, who shall be appointed by 
the Secretary. 
(c) RESPONSIBILITIES.—The Director of Homeland 
Security shall— 
(1) coordinate all homeland security activities of 
the Department, including integration and coordina-
tion of interagency emergency response plans for— 
(A) agricultural disease emergencies; 
(B) agroterrorist acts; and 
(C) other threats to agricultural biosecu-
rity; 
(2) act as the primary liaison on behalf of the 
Department with other Federal departments and 
agencies on the coordination of efforts and inter-
agency activities pertaining to agricultural biosecu-
rity; and 
(3) advise the Secretary on policies, regulations, 
processes, budget, and actions pertaining to home-
land security. 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01512
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1513 
SEC. 14112. AGRICULTURAL BIOSECURITY COMMUNICA-
TION CENTER. 
(a) ESTABLISHMENT.—The Secretary shall establish 
a communication center within the Department to— 
(1) collect and disseminate information and pre-
pare 
for 
an 
agricultural 
disease 
emergency, 
agroterrorist act, or other threat to agricultural bio-
security; and 
(2) coordinate activities described in paragraph 
(1) among agencies and offices within the Depart-
ment. 
(b) RELATION TO EXISTING DHS COMMUNICATION 
SYSTEMS.— 
(1) CONSISTENCY
AND
COORDINATION.—The 
communication center established under subsection 
(a) shall, to the maximum extent practicable, share 
and coordinate the dissemination of timely informa-
tion with the Department of Homeland Security and 
other communication systems of appropriate Federal 
departments and agencies. 
(2) AVOIDING REDUNDANCIES.—Paragraph (1) 
shall not be construed to impede, conflict with, or 
duplicate the communications activities performed by 
the Secretary of Homeland Security under any pro-
vision of law. 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01513
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1514 
(c) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated such sums as may be nec-
essary to carry out this section for each of fiscal years 
2008 through 2012. 
SEC. 14113. ASSISTANCE TO BUILD LOCAL CAPACITY IN AG-
RICULTURAL BIOSECURITY PLANNING, PRE-
PAREDNESS, AND RESPONSE. 
(a) ADVANCED TRAINING PROGRAMS.— 
(1) GRANT ASSISTANCE.—The Secretary shall 
establish a competitive grant program to support the 
development and expansion of advanced training 
programs in agricultural biosecurity planning and 
response for food science professionals and veteri-
narians. 
(2) AUTHORIZATION
OF
APPROPRIATIONS.— 
There are authorized to be appropriated to the Sec-
retary such sums as may be necessary to carry out 
this subsection for each of fiscal years 2008 through 
2012. 
(b) ASSESSMENT OF RESPONSE CAPABILITY.— 
(1) GRANT AND LOAN ASSISTANCE.—The Sec-
retary shall establish a competitive grant and low-in-
terest loan assistance program to assist States in as-
sessing agricultural disease response capability. 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01514
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1515 
(2) AUTHORIZATION
OF
APPROPRIATIONS.— 
There is authorized to be appropriated to carry out 
this subsection $25,000,000 for each of fiscal years 
2008 through 2012. 
CHAPTER 2—OTHER PROVISIONS 
SEC. 14121. RESEARCH AND DEVELOPMENT OF AGRICUL-
TURAL COUNTERMEASURES. 
(a) GRANT PROGRAM.— 
(1) COMPETITIVE GRANT PROGRAM.—The Sec-
retary shall establish a competitive grant program to 
encourage basic and applied research and the devel-
opment of qualified agricultural countermeasures. 
(2) WAIVER IN EMERGENCIES.—The Secretary 
may waive the requirement under paragraph (1) 
that a grant be provided on a competitive basis if— 
(A) the Secretary has declared a plant or 
animal disease emergency under the Plant Pro-
tection Act (7 U.S.C. 7701 et seq.) or the Ani-
mal Health Protection Act (7 U.S.C. 8301 et 
seq.); and 
(B) waiving the requirement would lead to 
the rapid development of a qualified agricul-
tural countermeasure, as determined by the 
Secretary. 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01515
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1516 
(b) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to carry out this section 
$50,000,000 for each of fiscal years 2008 through 2012. 
SEC. 14122. AGRICULTURAL BIOSECURITY GRANT PRO-
GRAM. 
(a) COMPETITIVE GRANT PROGRAM.—The Secretary 
shall establish a competitive grant program to promote the 
development of teaching programs in agriculture, veteri-
nary medicine, and disciplines closely allied to the food 
and agriculture system to increase the number of trained 
individuals with an expertise in agricultural biosecurity. 
(b) ELIGIBILITY.—The Secretary may award a grant 
under this section only to an entity that is— 
(1) an accredited school of veterinary medicine; 
or 
(2) a department of an institution of higher 
education with a primary focus on— 
(A) comparative medicine; 
(B) veterinary science; or 
(C) agricultural biosecurity. 
(c) PREFERENCE.—The Secretary shall give pref-
erence in awarding grants based on the ability of an appli-
cant— 
(1) to increase the number of veterinarians or 
individuals with advanced degrees in food and agri-
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01516
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1517 
culture disciplines who are trained in agricultural 
biosecurity practice areas; 
(2) to increase research capacity in areas of ag-
ricultural biosecurity; or 
(3) to fill critical agricultural biosecurity short-
age situations outside of the Federal Government. 
(d) USE OF FUNDS..— 
(1) IN GENERAL.—Amounts received under this 
section shall be used by a grantee to pay— 
(A) costs associated with the acquisition of 
equipment and other capital costs relating to 
the expansion of food, agriculture, and veteri-
nary medicine teaching programs in agricultural 
biosecurity; 
(B) capital costs associated with the ex-
pansion of academic programs that offer post-
graduate training for veterinarians or concur-
rent training for veterinary students in specific 
areas of specialization; or 
(C) other capacity and infrastructure pro-
gram costs that the Secretary considers appro-
priate. 
(2) LIMITATION.—Funds received under this 
section may not be used for the construction, ren-
ovation, or rehabilitation of a building or facility. 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01517
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1518 
(e) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated sums as are necessary 
to carry out this section for each of fiscal years 2008 
through 2012, to remain available until expended. 
Subtitle C—Other Miscellaneous 
Provisions 
SEC. 14201. COTTON CLASSIFICATION SERVICES. 
Section 3a of the Act of March 3, 1927 (7 U.S.C. 
473a), is amended to read as follows: 
‘‘SEC. 3a. COTTON CLASSIFICATION SERVICES. 
‘‘(a) IN GENERAL.—The Secretary of Agriculture 
(referred to in this section as the ‘Secretary’) shall— 
‘‘(1) make cotton classification services avail-
able to producers of cotton; and 
‘‘(2) provide for the collection of classification 
fees from participating producers or agents that vol-
untarily agree to collect and remit the fees on behalf 
of producers. 
‘‘(b) FEES.— 
‘‘(1) USE
OF
FEES.—Classification fees col-
lected under subsection (a)(2) and the proceeds from 
the sales of samples submitted under this section 
shall, to the maximum extent practicable, be used to 
pay the cost of the services provided under this sec-
tion, including administrative and supervisory costs. 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01518
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1519 
‘‘(2) ANNOUNCEMENT
OF
FEES.—The Sec-
retary shall announce a uniform classification fee 
and any applicable surcharge for classification serv-
ices not later than June 1 of the year in which the 
fee applies. 
‘‘(c) CONSULTATION.— 
‘‘(1) IN GENERAL.—In establishing the amount 
of fees under this section, the Secretary shall consult 
with representatives of the United States cotton in-
dustry. 
‘‘(2) EXEMPTION.—The Federal Advisory Com-
mittee Act (5 U.S.C. App.) shall not apply to con-
sultations with representatives of the United States 
cotton industry under this section. 
‘‘(d) CREDITING OF FEES.—Any fees collected under 
this section and under section 3d, late payment penalties, 
the proceeds from the sales of samples, and interest 
earned from the investment of such funds shall— 
‘‘(1) be credited to the current appropriation 
account that incurs the cost of services provided 
under this section and section 3d; and 
‘‘(2) remain available without fiscal year limita-
tion to pay the expenses of the Secretary in pro-
viding those services. 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01519
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1520 
‘‘(e) INVESTMENT OF FUNDS.—Funds described in 
subsection (d) may be invested— 
‘‘(1) by the Secretary in insured or fully 
collateralized, interest-bearing accounts; or 
‘‘(2) at the discretion of the Secretary, by the 
Secretary of the Treasury in United States Govern-
ment debt instruments. 
‘‘(f) LEASE
AGREEMENTS.—Notwithstanding any 
other provision of law, the Secretary may enter into long- 
term lease agreements that exceed 5 years or may take 
title to property (including through purchase agreements) 
for the purpose of obtaining offices to be used for the clas-
sification of cotton in accordance with this Act, if the Sec-
retary determines that action would best effectuate the 
purposes of this Act. 
‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—To the 
extent that financing is not available from fees and the 
proceeds from the sales of samples, there are authorized 
to be appropriated such sums as are necessary to carry 
out this section.’’. 
SEC. 14202. DESIGNATION OF STATES FOR COTTON RE-
SEARCH AND PROMOTION. 
Section 17(f) of the Cotton Research and Promotion 
Act (7 U.S.C. 2116(f)) is amended— 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01520
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1521 
(1) by striking ‘‘(f) The term’’ and inserting 
the following: 
‘‘(f) COTTON-PRODUCING STATE.— 
‘‘(1) IN GENERAL.—The term’’; 
(2) by striking ‘‘more, and the term’’ and all 
that follows through the end of the subsection and 
inserting the following: ‘‘more. 
‘‘(2) INCLUSIONS.—The term ‘cotton-producing 
State’ includes— 
‘‘(A) any combination of States described 
in paragraph (1); and 
‘‘(B) effective beginning with the 2008 
crop of cotton, the States of Kansas, Virginia, 
and Florida.’’. 
SEC. 
14203. 
GRANTS 
TO 
REDUCE 
PRODUCTION 
OF 
METHAMPHETAMINES 
FROM 
ANHYDROUS 
AMMONIA. 
(a) DEFINITIONS.—In this section: 
(1) ELIGIBLE ENTITY.—The term ‘‘eligible enti-
ty’’ means— 
(A) a producer of agricultural commod-
ities; 
(B) a cooperative association, a majority of 
the members of which produce or process agri-
cultural commodities; or 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01521
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1522 
(C) a person in the trade or business of— 
(i) selling an agricultural product (in-
cluding an agricultural chemical) at retail, 
predominantly to farmers and ranchers; or 
(ii) aerial and ground application of 
an agricultural chemical. 
(2) NURSE
TANK.—The term ‘‘nurse tank’’ 
shall be considered to be a cargo tank (within the 
meaning of section 173.315(m) of title 49, Code of 
Federal Regulations, as in effect as of the date of 
the enactment of this Act). 
(b) GRANT AUTHORITY.—The Secretary may make 
a grant to an eligible entity to enable the eligible entity 
to obtain and add to an anhydrous ammonia fertilizer 
nurse tank a physical lock or a substance to reduce the 
amount of methamphetamine that can be produced from 
any anhydrous ammonia removed from the nurse tank. 
(c) GRANT AMOUNT.—The amount of a grant made 
under this section to an eligible entity shall be the product 
obtained by multiplying— 
(1) an amount not less than $40 and not more 
than $60, as determined by the Secretary; and 
(2) the number of fertilizer nurse tanks of the 
eligible entity. 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01522
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1523 
(d) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to the Secretary to make 
grants under this section $15,000,000 for the period of 
fiscal years 2008 through 2012. 
SEC. 14204. GRANTS TO IMPROVE SUPPLY, STABILITY, 
SAFETY, AND TRAINING OF AGRICULTURAL 
LABOR FORCE. 
(a) DEFINITION OF ELIGIBLE ENTITY.—In this sec-
tion, the term ‘‘eligible entity’’ means an entity described 
in section 379C(a) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 2008q(a)). 
(b) GRANTS.— 
(1) IN GENERAL.—To assist agricultural em-
ployers and farmworkers by improving the supply, 
stability, safety, and training of the agricultural 
labor force, the Secretary may provide grants to eli-
gible entities for use in providing services to assist 
farmworkers who are citizens or otherwise legally 
present in the United States in securing, retaining, 
upgrading, or returning from agricultural jobs. 
(2) ELIGIBLE SERVICES.—The services referred 
to in paragraph (1) include— 
(A) agricultural labor skills development; 
(B) the provision of agricultural labor mar-
ket information; 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01523
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1524 
(C) transportation; 
(D) short-term housing while in transit to 
an agricultural worksite; 
(E) workplace literacy and assistance with 
English as a second language; 
(F) health and safety instruction, including 
ways of safeguarding the food supply of the 
United States; and 
(G) such other services as the Secretary 
determines to be appropriate. 
(c) LIMITATION ON ADMINISTRATIVE EXPENSES.— 
Not more than 15 percent of the funds made available 
to carry out this section for a fiscal year may be used 
to pay for administrative expenses. 
(d) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated such sums as are nec-
essary to carry out this section for each of fiscal years 
2008 through 2012. 
SEC. 14205. AMENDMENT TO THE RIGHT TO FINANCIAL PRI-
VACY ACT OF 1978. 
Section 1113(k) of the Right to Financial Privacy 
Act of 1978 (12 U.S.C. 3413(k)) is amended— 
(1) by striking the subsection heading and in-
serting the following: 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01524
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
1525 
‘‘(k) DISCLOSURE NECESSARY FOR PROPER ADMIN-
ISTRATION OF PROGRAMS OF CERTAIN GOVERNMENT AU-
THORITIES.—’’; and 
(2) by striking paragraph (2) and inserting the 
following: 
‘‘(2) Nothing in this title shall apply to the dis-
closure by the financial institution of information 
contained in the financial records of any customer to 
any Government authority that certifies, disburses, 
or collects payments, where the disclosure of such 
information is necessary to, and such information is 
used solely for the purpose of— 
‘‘(A) verification of the identity of any per-
son or proper routing and delivery of funds in 
connection with the issuance of a Federal pay-
ment or collection of funds by a Government 
authority; or 
‘‘(B) the investigation or recovery of an 
improper Federal payment or collection of 
funds or an improperly negotiated Treasury 
check. 
‘‘(3) Notwithstanding any other provision of 
law, a request authorized by paragraph (1) or (2) 
(and the information contained therein) may be used 
by the financial institution or its agents solely for 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 01525
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS