H. R. 4788—13
‘‘(1) IN GENERAL.—To’’; and
(2) by adding at the end the following:
‘‘(2) FEES AND PENALTIES.—
‘‘(A) IN GENERAL.—In carrying out paragraph (1), the
Secretary may assess and collect reasonable fees and late
payment penalties to mediate and arbitrate disputes
arising between parties in connection with transactions
involving agricultural products moving in foreign commerce
under the jurisdiction of a multinational entity.
‘‘(B) DEPOSIT.—Fees and penalties collected under
subparagraph (A) shall be deposited into the account that
incurred the cost of providing the mediation or arbitration
service.
‘‘(C) AVAILABILITY.—Fees and penalties collected under
subparagraph (A) shall be available to the Secretary with-
out further Act of appropriation and shall remain available
until expended to pay the expenses of the Secretary for
providing mediation and arbitration services under this
paragraph.
‘‘(D) NO REQUIREMENT FOR USE OF SERVICES.—No per-
son shall be required by the Secretary to use the mediation
and arbitration services provided under this paragraph.’’.
SEC. 304. COMMUNITY FACILITIES GRANT PROGRAM FOR RURAL
COMMUNITIES WITH EXTREME UNEMPLOYMENT AND
SEVERE ECONOMIC DEPRESSION.
(a) IN GENERAL.—Section 306(a) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1926(a)) is amended by adding
at the end the following:
‘‘(20) COMMUNITY FACILITIES GRANT PROGRAM FOR RURAL
COMMUNITIES WITH EXTREME UNEMPLOYMENT AND SEVERE ECO-
NOMIC DEPRESSION.—
‘‘(A) DEFINITION OF NOT EMPLOYED RATE.—In this para-
graph, the term ‘not employed rate’, with respect to a
community, means the percentage of individuals over the
age of 18 who reside within the community and who are
ready, willing, and able to be employed but are unable
to find employment, as determined by the department of
labor of the State in which the community is located.
‘‘(B) GRANT
AUTHORITY.—The Secretary may make
grants to associations, units of general local government,
nonprofit corporations, and Indian tribes (as defined in
section 4 of the Indian Self-Determination and Education
Assistance Act (25 U.S.C. 450b)) in a State to provide
the Federal share of the cost of developing specific essential
community facilities in rural communities with respect to
which the not employed rate is greater than the lesser
of—
‘‘(i) 500 percent of the average national unemploy-
ment rate on the date of the enactment of this para-
graph, as determined by the Bureau of Labor Statistics;
or
‘‘(ii) 200 percent of the average national unemploy-
ment rate during the Great Depression, as determined
by the Bureau of Labor Statistics.
‘‘(C) FEDERAL SHARE.—Paragraph (19)(B) shall apply
to a grant made under this paragraph.
H. R. 4788—14
‘‘(D) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated to carry out this paragraph
$50,000,000 for fiscal year 2001 and such sums as are
necessary for each subsequent fiscal year, of which not
more than 5 percent of the amount made available for
a fiscal year shall be available for community planning
and implementation.’’.
(b) CONFORMING AMENDMENT.—Section 381E(d)(1)(B) of the
Consolidated Farm and Rural Development Act (7 U.S.C.
2009d(d)(1)(B)) is amended by striking ‘‘section 306(a)(19)’’ and
inserting ‘‘paragraph (19) or (20) of section 306(a)’’.
SEC. 305. COMMUNITY FACILITIES GRANT PROGRAM FOR RURAL
COMMUNITIES WITH HIGH LEVELS OF OUT-MIGRATION
OR LOSS OF POPULATION.
(a) IN GENERAL.—Section 306(a) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1926(a)) (as amended by section
304(a)) is amended by adding at the end the following:
‘‘(21) COMMUNITY FACILITIES GRANT PROGRAM FOR RURAL
COMMUNITIES WITH HIGH LEVELS OF OUT-MIGRATION OR LOSS
OF POPULATION.—
‘‘(A) GRANT
AUTHORITY.—The Secretary may make
grants to associations, units of general local government,
nonprofit corporations, and Indian tribes (as defined in
section 4 of the Indian Self-Determination and Education
Assistance Act (25 U.S.C. 450b)) in a State to provide
the Federal share of the cost of developing specific essential
community facilities in any geographic area—
‘‘(i) that is represented by—
‘‘(I) any political subdivision of a State;
‘‘(II) an Indian tribe on a Federal or State
reservation; or
‘‘(III) other federally recognized Indian tribal
group;
‘‘(ii) that is located in a rural area (as defined
in section 381A);
‘‘(iii) with respect to which, during the most recent
5-year period, the net out-migration of inhabitants,
or other population loss, from the area equals or
exceeds 5 percent of the population of the area; and
‘‘(iv) that has a median household income that
is less than the nonmetropolitan median household
income of the United States.
‘‘(B) FEDERAL SHARE.—Paragraph (19)(B) shall apply
to a grant made under this paragraph.
‘‘(C) AUTHORIZATION
OF
APPROPRIATIONS.—There are
authorized to be appropriated to carry out this paragraph
$50,000,000 for fiscal year 2001 and such sums as are
necessary for each subsequent fiscal year, of which not
more than 5 percent of the amount made available for
a fiscal year shall be available for community planning
and implementation.’’.
(b) CONFORMING AMENDMENT.—Section 381E(d)(1)(B) of the
Consolidated Farm and Rural Development Act (7 U.S.C.
2009d(d)(1)(B)) (as amended by section 304(b)) is amended by
striking ‘‘paragraph (19) or (20)’’ and inserting ‘‘paragraph (19),
(20), or (21)’’.
H. R. 4788—15
SEC. 306. STATE AGRICULTURAL MEDIATION PROGRAMS.
(a) ELIGIBLE PERSON; MEDIATION SERVICES.—Section 501 of
the Agricultural Credit Act of 1987 (7 U.S.C. 5101) is amended—
(1) in subsection (c), by striking paragraphs (1) and (2)
and inserting the following:
‘‘(1) ISSUES COVERED.—
‘‘(A) IN GENERAL.—To be certified as a qualifying State,
the mediation program of the State must provide mediation
services to persons described in paragraph (2) that are
involved in agricultural loans (regardless of whether the
loans are made or guaranteed by the Secretary or made
by a third party).
‘‘(B) OTHER ISSUES.—The mediation program of a quali-
fying State may provide mediation services to persons
described in paragraph (2) that are involved in one or
more of the following issues under the jurisdiction of the
Department of Agriculture:
‘‘(i) Wetlands determinations.
‘‘(ii) Compliance with farm programs, including
conservation programs.
‘‘(iii) Agricultural credit.
‘‘(iv) Rural water loan programs.
‘‘(v) Grazing on National Forest System land.
‘‘(vi) Pesticides.
‘‘(vii) Such other issues as the Secretary considers
appropriate.
‘‘(2) PERSONS ELIGIBLE FOR MEDIATION.—
‘‘(A) IN GENERAL.—Subject to subparagraph (B), the
persons referred to in paragraph (1) include—
‘‘(i) agricultural producers;
‘‘(ii) creditors of producers (as applicable); and
‘‘(iii) persons directly affected by actions of the
Department of Agriculture.
‘‘(B) VOLUNTARY PARTICIPATION.—
‘‘(i) IN GENERAL.—Subject to clause (ii) and section
503, a person may not be compelled to participate
in mediation services provided under this Act.
‘‘(ii) STATE
LAWS.—Clause (i) shall not affect a
State law requiring mediation before foreclosure on
agricultural land or property.’’; and
(2) by adding at the end the following:
‘‘(d) DEFINITION OF MEDIATION SERVICES.—In this section, the
term ‘mediation services’, with respect to mediation or a request
for mediation, may include all activities related to—
‘‘(1) the intake and scheduling of cases;
‘‘(2) the provision of background and selected information
regarding the mediation process;
‘‘(3) financial advisory and counseling services (as appro-
priate) performed by a person other than a State mediation
program mediator; and
‘‘(4) the mediation session.’’.
(b) USE OF MEDIATION GRANTS.—Section 502(c) of the Agricul-
tural Credit Act of 1987 (7 U.S.C. 5102(c)) is amended—
(1) by striking ‘‘Each’’ and inserting the following:
‘‘(1) IN GENERAL.—Each’’; and
(2) by adding at the end the following:
H. R. 4788—16
‘‘(2) OPERATION AND ADMINISTRATION EXPENSES.—For pur-
poses of paragraph (1), operation and administration expenses
for which a grant may be used include—
‘‘(A) salaries;
‘‘(B) reasonable fees and costs of mediators;
‘‘(C) office rent and expenses, such as utilities and
equipment rental;
‘‘(D) office supplies;
‘‘(E) administrative costs, such as workers’ compensa-
tion, liability insurance, the employer’s share of Social
Security, and necessary travel;
‘‘(F) education and training;
‘‘(G) security systems necessary to ensure the confiden-
tiality of mediation sessions and records of mediation ses-
sions;
‘‘(H) costs associated with publicity and promotion of
the mediation program;
‘‘(I) preparation of the parties for mediation; and
‘‘(J) financial advisory and counseling services for par-
ties requesting mediation.’’.
(c) AUTHORIZATION
OF APPROPRIATIONS.—Section 506 of the
Agricultural Credit Act of 1987 (7 U.S.C. 5106) is amended by
striking ‘‘2000’’ and inserting ‘‘2005’’.
SEC. 307. ADJUSTMENTS TO NUTRITION PROGRAMS.
(a) PAYMENT
OF
COSTS
ASSOCIATED
WITH
REMOVAL
OF
COMMODITIES THAT POSE A HEALTH OR SAFETY RISK.—Section 15(e)
of the Commodity Distribution Reform Act and WIC Amendments
of 1987 (7 U.S.C. 612c note; Public Law 100–237) is amended
by striking ‘‘2000’’ and inserting ‘‘2003’’.
(b) SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN,
INFANTS, AND CHILDREN.—
(1) COST-OF-LIVING
ALLOWANCES
FOR
MEMBERS
OF
UNI-
FORMED SERVICES.—Section 17(d)(2)(B)(ii) of the Child Nutrition
Act of 1966 (42 U.S.C. 1786(d)(2)(B)(ii)) is amended by striking
‘‘continental’’ and inserting ‘‘contiguous States of the’’.
(2) DEMONSTRATION PROJECT.—Effective October 1, 2000,
section 17(r)(1) of the Child Nutrition Act of 1966 (42 U.S.C.
1786(r)(1)) is amended by striking ‘‘at least 20 local agencies’’
and inserting ‘‘not more than 20 local agencies’’.
(c) CHILD AND ADULT CARE FOOD PROGRAM.—
(1) TECHNICAL AMENDMENTS.—Section 17 of the Richard
B. Russell National School Lunch Act (42 U.S.C. 1766) is
amended—
(A) by striking the section heading and all that follows
through ‘‘SEC. 17.’’ and inserting the following:
‘‘SEC. 17. CHILD AND ADULT CARE FOOD PROGRAM.’’;
and
(B) in subsection (a)(6)(C)(ii), by striking ‘‘and’’ at the
end.
(2) EXCEPTIONS
TO
HEARING
REQUIREMENTS.—Section
17(d)(5)(D) of the Richard B. Russell National School Lunch
Act (42 U.S.C. 1766(d)(5)(D)) is amended—
(A) by striking ‘‘(D) HEARING.—An institution’’ and
inserting the following:
‘‘(D) HEARING.—
H. R. 4788—17
‘‘(i) IN
GENERAL.—Except as provided in clause
(ii), an institution’’; and
(B) by adding at the end the following:
‘‘(ii) 
EXCEPTION
FOR
FALSE
OR
FRAUDULENT
CLAIMS.—
‘‘(I) IN GENERAL.—If a State agency determines
that an institution has knowingly submitted a false
or fraudulent claim for reimbursement, the State
agency may suspend the participation of the
institution in the program in accordance with this
clause.
‘‘(II) REQUIREMENT FOR REVIEW.—Prior to any
determination to suspend participation of an
institution under subclause (I), the State agency
shall provide for an independent review of the
proposed suspension in accordance with subclause
(III).
‘‘(III) REVIEW PROCEDURE.—The review shall—
‘‘(aa) be conducted by an independent and
impartial official other than, and not account-
able to, any person involved in the determina-
tion to suspend the institution;
‘‘(bb) provide the State agency and the
institution the right to submit written docu-
mentation 
relating 
to 
the 
suspension,
including State agency documentation of the
alleged 
false 
or 
fraudulent 
claim 
for
reimbursement and the response of the
institution to the documentation;
‘‘(cc) require the reviewing official to deter-
mine, based on the review, whether the State
agency has established, based on a preponder-
ance of the evidence, that the institution has
knowingly submitted a false or fraudulent
claim for reimbursement;
‘‘(dd) require the suspension to be in effect
for not more than 120 calendar days after
the institution has received notification of a
determination of suspension in accordance
with this clause; and
‘‘(ee) require the State agency during the
suspension to ensure that payments continue
to be made to sponsored centers and family
and group day care homes meeting the
requirements of the program.
‘‘(IV) HEARING.—A State agency shall provide
an institution that has been suspended from
participation in the program under this clause an
opportunity for a fair hearing on the suspension
conducted in accordance with subsection (e)(1).’’.
(3) STATEWIDE DEMONSTRATION PROJECTS INVOLVING PRI-
VATE
FOR-PROFIT
ORGANIZATIONS
PROVIDING
NONRESIDENTIAL
DAY CARE SERVICES.—Section 17(p)(3)(C) of the Richard B. Rus-
sell National School Lunch Act (42 U.S.C. 1766(p)(3)(C)) is
amended—
(A) in clause (iii), by striking ‘‘all families’’ and
inserting ‘‘all low-income families’’; and
H. R. 4788—18
(B) in clause (iv), by striking ‘‘made’’ and inserting
‘‘reported for fiscal year 1998’’.
SEC. 308. AUTHORIZATION FOR SECRETARY OF AGRICULTURE TO PUR-
CHASE AND TRANSFER LAND.
Subject to the availability of funds appropriated to the Agricul-
tural Research Service, the Secretary of Agriculture may—
(1) purchase a tract of land in the State of South Carolina
that is contiguous to land owned on the date of the enactment
of this Act by the Department of Agriculture, acting through
the Coastal Plains Soil, Water, and Plant Research Center
of the Agricultural Research Service; and
(2) transfer land owned by the Department of Agriculture
to the Florence Darlington Technical College, South Carolina,
in exchange for land owned by the College.
SEC. 309. EXTENSION OF TIME PERIOD FOR FILING CERTAIN COM-
PLAINTS ALLEGING PREPARATION OF FALSE INSPEC-
TION CERTIFICATES.
Notwithstanding section 6(a)(1) of the Perishable Agricultural
Commodities Act, 1930 (7 U.S.C. 499f(a)(1)), a person that desires
to file a complaint under section 6 of that Act involving the allega-
tion of a false inspection certificate prepared by a grader of the
Department of Agriculture at Hunts Point Terminal Market, Bronx,
New York, prior to October 27, 1999, may file the complaint not
later than January 1, 2001.
SEC. 310. INTERNATIONAL FOOD RELIEF PARTNERSHIP.
(a) ASSISTANCE FOR STOCKPILING AND RAPID TRANSPORTATION,
DELIVERY, AND
DISTRIBUTION
OF
SHELF-STABLE
PREPACKAGED
FOODS.—Title II of the Agricultural Trade Development and Assist-
ance Act of 1954 (7 U.S.C. 1721 et seq.) is amended by adding
at the end the following:
‘‘SEC. 208. ASSISTANCE FOR STOCKPILING AND RAPID TRANSPOR-
TATION, DELIVERY, AND DISTRIBUTION OF SHELF-
STABLE PREPACKAGED FOODS.
‘‘(a) IN GENERAL.—The Administrator may provide grants to—
‘‘(1) United States nonprofit organizations (described in
section 501(c)(3) of the Internal Revenue Code of 1986 and
exempt from tax under section 501(a) of the Internal Revenue
Code of 1986) for the preparation of shelf-stable prepackaged
foods requested by eligible organizations and the establishment
and maintenance of stockpiles of the foods in the United States;
and
‘‘(2) private voluntary organizations and international
organizations for the rapid transportation, delivery, and dis-
tribution of shelf-stable prepackaged foods described in para-
graph (1) to needy individuals in foreign countries.
‘‘(b) GRANTS FOR ESTABLISHMENT OF STOCKPILES.—
‘‘(1) IN GENERAL.—Not more than 70 percent of the amount
made available to carry out this section shall be used to provide
grants under subsection (a)(1).
‘‘(2) PRIORITY.—In providing grants under subsection (a)(1),
the Administrator shall provide a preference to a United States
nonprofit organization that agrees to provide—
H. R. 4788—19
‘‘(A) non-Federal funds in an amount equal to 50 per-
cent of the amount of funds received under a grant under
subsection (a)(1);
‘‘(B) an in-kind contribution in an amount equal to
that percentage; or
‘‘(C) a combination of such funds and an in-kind con-
tribution,
for the preparation of shelf-stable prepackaged foods and the
establishment and maintenance of stockpiles of the foods in
the United States in accordance with subsection (a)(1).
‘‘(c) GRANTS FOR RAPID TRANSPORTATION, DELIVERY, AND DIS-
TRIBUTION.—Not less than 20 percent of the amount made available
to carry out this section shall be used to provide grants under
subsection (a)(2).
‘‘(d) ADMINISTRATION.—Not more than 10 percent of the amount
made available to carry out this section may be used by the
Administrator for the administration of grants under subsection
(a).
‘‘(e) REGULATIONS OR GUIDELINES.—Not later than 180 days
after the date of the enactment of this section, the Administrator,
in consultation with the Secretary, shall issue such regulations
or guidelines as the Administrator determines to be necessary to
carry out this section, including regulations or guidelines that pro-
vide to United States nonprofit organizations eligible to receive
grants under subsection (a)(1) guidance with respect to the require-
ments for qualified shelf-stable prepackaged foods and the quantity
of the foods to be stockpiled by the organizations.
‘‘(f ) AUTHORIZATION OF APPROPRIATIONS.—There is authorized
to be appropriated to the Administrator to carry out this section,
in addition to amounts otherwise available to carry out this section,
$3,000,000 for each of fiscal years 2001 and 2002, to remain avail-
able until expended.’’.
(b) PREPOSITIONING OF COMMODITIES.—Section 407(c) of the
Agricultural Trade Development and Assistance Act of 1954 (7
U.S.C. 1736a(c)) is amended by adding at the end the following:
‘‘(4) PREPOSITIONING.—Funds made available for fiscal
years 2001 and 2002 to carry out titles II and III may be
used by the Administrator to procure, transport, and store
agricultural commodities for prepositioning within the United
States and in foreign countries, except that for each such fiscal
year not more than $2,000,000 of such funds may be used
to store agricultural commodities for prepositioning in foreign
countries.’’.
SEC. 311. COTTON FUTURES.
Subsection (d)(2) of the United States Cotton Futures Act (7
U.S.C. 15b(d)(2)) is amended by adding at the end the following:
‘‘A person complying with the preceding sentence shall not be
liable for any loss or damage arising or resulting from such compli-
ance.’’.
SEC. 312. IMPROVED INVESTIGATIVE AND ENFORCEMENT ACTIVITIES
UNDER THE PACKERS AND STOCKYARDS ACT, 1921.
(a) IMPLEMENTATION OF GENERAL ACCOUNTING OFFICE REC-
OMMENDATIONS.—Not later than 1 year after the date of the enact-
ment of this Act, the Secretary of Agriculture shall implement
the recommendations contained in the report issued by the General
Accounting Office entitled ‘‘Packers and Stockyards Programs:
H. R. 4788—20
Actions Needed to Improve Investigations of Competitive Practices’’,
GAO/RCED–00–242, dated September 21, 2000.
(b) CONSULTATION.—During the implementation period referred
to in subsection (a), and for such an additional time period as
needed to assure effective implementation of the recommendations
contained in the report referred to in such subsection, the Secretary
of Agriculture shall consult and work with the Department of
Justice and the Federal Trade Commission in order to—
(1) implement the recommendations in the report regarding
investigation management, operations, and case methods
development processes; and
(2) effectively identify and investigate complaints of unfair
and anti-competitive practices in violation of the Packers and
Stockyards Act, 1921 (7 U.S.C. 181 et seq.), and enforce the
Act.
(c) TRAINING.—Not later than 1 year after the date of the
enactment of this Act, the Secretary of Agriculture shall develop
and implement a training program for staff of the Department
of Agriculture engaged in the investigation of complaints of unfair
and anti-competitive activity in violation of the Packers and Stock-
yards Act, 1921. In developing the training program, the Secretary
of Agriculture shall draw on existing training materials and pro-
grams available at the Department of Justice and the Federal
Trade Commission, to the extent practicable.
(d) IMPLEMENTATION REPORT.—Not later than 1 year after the
date of the enactment of this Act, the Secretary of Agriculture
shall submit to Congress a report describing the actions taken
to comply with this section.
(e) ANNUAL ASSESSMENT OF CATTLE AND HOG INDUSTRIES.—
Title IV of the Packers and Stockyards Act, 1921, is amended—
(1) by redesignating section 415 (7 U.S.C. 229) as section
416; and
(2) by inserting after section 414 the following:
‘‘SEC. 415. ANNUAL ASSESSMENT OF CATTLE AND HOG INDUSTRIES.
‘‘Not later than March 1 of each year, the Secretary shall
submit to Congress and make publicly available a report that—
‘‘(1) assesses the general economic state of the cattle and
hog industries;
‘‘(2) describes changing business practices in those indus-
tries; and
‘‘(3) identifies market operations or activities in those
industries that appear to raise concerns under this Act.’’.
SEC. 313. REHABILITATION OF WATER RESOURCE STRUCTURAL MEAS-
URES CONSTRUCTED UNDER CERTAIN DEPARTMENT OF
AGRICULTURE PROGRAMS.
The Watershed Protection and Flood Prevention Act (16 U.S.C.
1001 et seq.) is amended by adding at the end the following new
section:
‘‘SEC. 14. REHABILITATION OF STRUCTURAL MEASURES NEAR, AT, OR
PAST THEIR EVALUATED LIFE EXPECTANCY.
‘‘(a) DEFINITIONS.—For purposes of this section:
‘‘(1) REHABILITATION.—The term ‘rehabilitation’, with
respect to a structural measure constructed as part of a covered
water resource project, means the completion of all work nec-
essary to extend the service life of the structural measure
H. R. 4788—21
and meet applicable safety and performance standards. This
may include: (A) protecting the integrity of the structural
measure or prolonging the useful life of the structural measure
beyond the original evaluated life expectancy; (B) correcting
damage to the structural measure from a catastrophic event;
(C) correcting the deterioration of structural components that
are deteriorating at an abnormal rate; (D) upgrading the struc-
tural measure to meet changed land use conditions in the
watershed served by the structural measure or changed safety
criteria applicable to the structural measure; or (E) decommis-
sioning the structure, if requested by the local organization.
‘‘(2) COVERED WATER RESOURCE PROJECT.—The term ‘cov-
ered water resource project’ means a work of improvement
carried out under any of the following:
‘‘(A) This Act.
‘‘(B) Section 13 of the Act of December 22, 1944 (Public
Law 78–534; 58 Stat. 905).
‘‘(C) The pilot watershed program authorized under
the heading ‘FLOOD PREVENTION’ of the Department of
Agriculture Appropriation Act, 1954 (Public Law 156; 67
Stat. 214).
‘‘(D) Subtitle H of title XV of the Agriculture and
Food Act of 1981 (16 U.S.C. 3451 et seq.; commonly known
as the Resource Conservation and Development Program).
‘‘(3) STRUCTURAL MEASURE.—The term ‘structural measure’
means a physical improvement that impounds water, commonly
known as a dam, which was constructed as part of a covered
water resource project, including the impoundment area and
flood pool.
‘‘(b) COST SHARE ASSISTANCE FOR REHABILITATION.—
‘‘(1) ASSISTANCE AUTHORIZED.—The Secretary may provide
financial assistance to a local organization to cover a portion
of the total costs incurred for the rehabilitation of structural
measures originally constructed as part of a covered water
resource project. The total costs of rehabilitation include the
costs associated with all components of the rehabilitation
project, including acquisition of land, easements, and rights-
of-ways, rehabilitation project administration, the provision of
technical assistance, contracting, and construction costs, except
that the local organization shall be responsible for securing
all land, easements, or rights-of-ways necessary for the project.
‘‘(2) AMOUNT
OF
ASSISTANCE; LIMITATIONS.—The amount
of Federal funds that may be made available under this sub-
section to a local organization for construction of a particular
rehabilitation project shall be equal to 65 percent of the total
rehabilitation costs, but not to exceed 100 percent of actual
construction costs incurred in the rehabilitation. However, the
local organization shall be responsible for the costs of water,
mineral, and other resource rights and all Federal, State, and
local permits.
‘‘(3) RELATION TO LAND USE AND DEVELOPMENT REGULA-
TIONS.—As a condition on entering into an agreement to provide
financial assistance under this subsection, the Secretary,
working in concert with the affected unit or units of general
purpose local government, may require that proper zoning or
other developmental regulations are in place in the watershed