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scribes actions taken by the Office of the Small Farms Advo-
cate to further the interests of small farms.
SEC. 768. LIMIT ON PENALTY FOR INADVERTENT VIO-
LATION OF CONTRACT UNDER THE AGRICULTURAL MAR-
KET TRANSITION ACT. If an owner or producer, in good
faith, inadvertently plants edible beans during the 1998
crop year on acreage covered by a contract under the Agri-
cultural Market Transition Act (7 U.S.C. 7201 et seq.), the
Secretary of Agriculture shall minimize penalties imposed
for the planting to prevent economic injury to the owner
or producer.
SEC. 769. The Secretary of Agriculture shall present
to Congress by March 1, 1999 a report on whether to rec-
ommend lifting the ban on the interstate-distribution of
State inspected meat.
SEC. 770. PROHIBITION ON LOAN GUARANTEES TO
BORROWERS THAT HAVE RECEIVED DEBT FORGIVENESS.
Section 373 of the Consolidated Farm and Rural Develop-
ment Act (7 U.S.C. 2008h) is amended by striking sub-
section (b) and inserting the following:
‘‘(b) PROHIBITION OF LOANS FOR BORROWERS THAT
HAVE RECEIVED DEBT FORGIVENESS.—
‘‘(1) PROHIBITIONS.—Except as provided in
paragraph (2)—
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‘‘(A) the Secretary may not make a loan
under this title to a borrower that has received
debt forgiveness on a loan made or guaranteed
under this title; and
‘‘(B) the Secretary may not guarantee a
loan under this title to a borrower that has re-
ceived—
‘‘(i) debt forgiveness after April 4,
1996, on a loan made or guaranteed under
this title; or
‘‘(ii) received debt forgiveness on no
more than 3 occasions on or before April 4,
1996.
‘‘(2) EXCEPTIONS.—
‘‘(A) IN
GENERAL.—The Secretary may
make a direct or guaranteed farm operating loan
for paying annual farm or ranch operating ex-
penses of a borrower that was restructured with
a write-down under section 353.
‘‘(B) EMERGENCY
LOANS.—The Secretary
may make an emergency loan under section 321
to a borrower that—
‘‘(i) on or before April 4, 1996, re-
ceived not more than 1 debt forgiveness on
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a loan made or guaranteed under this title;
and
‘‘(ii) after April 4, 1996, has not re-
ceived debt forgiveness on a loan made or
guaranteed under this title.’’.
SEC. 771. DEFINITION OF FAMILY FARM. (a) REAL
ESTATE LOANS.—Section 302 of the Consolidated Farm
and Rural Development Act (7 U.S.C. 1922) is amended
by adding at the end the following:
‘‘(c) DETERMINATION OF QUALIFICATION FOR LOAN.—
‘‘(1) PRIMARY FACTOR.—The primary factor to
be considered in determining whether an applicant
for a loan under this subtitle is engaged primarily
and directly in farming or ranching shall be whether
the applicant is participating in routine, ongoing
farm activities and in overall decisionmaking with
regard to the farm or ranch.
‘‘(2) NO BASIS FOR DENIAL OF LOAN.—The Sec-
retary may not deny a loan under this subtitle solely
because 2 or more individuals are employed full-time
in the farming operation for which the loan is
sought.’’.
(b) OPERATING LOANS.—Section 311 of the Consoli-
dated Farm and Rural Development Act (7 U.S.C. 1941)
is amended by adding at the end the following:
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‘‘(d) 
DETERMINATION
OF
QUALIFICATION
FOR
LOAN.—
‘‘(1) PRIMARY FACTOR.—The primary factor to
be considered in determining whether an applicant
for a loan under this subtitle is engaged primarily
and directly in farming or ranching shall be whether
the applicant is participating in routine, ongoing
farm activities and in overall decisionmaking with
regard to the farm or ranch.
‘‘(2) NO BASIS FOR DENIAL OF LOAN.—The Sec-
retary may not deny a loan under this subtitle solely
because 2 or more individuals are employed full-time
in the farming operation for which the loan is
sought.’’.
(c) EMERGENCY LOANS.—Section 321 of the Consoli-
dated Farm and Rural Development Act (7 U.S.C. 1961)
is amended by adding at the end the following:
‘‘(e) DETERMINATION OF QUALIFICATION FOR LOAN.—
‘‘(1) PRIMARY FACTOR.—The primary factor to
be considered in determining whether an applicant
for a loan under this subtitle is engaged primarily
and directly in farming or ranching shall be whether
the applicant is participating in routine, ongoing
farm activities and in overall decisionmaking with
regard to the farm or ranch.
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‘‘(2) NO BASIS FOR DENIAL OF LOAN.—The Sec-
retary may not deny a loan under this subtitle solely
because 2 or more individuals are employed full-time
in the farming operation for which the loan is
sought.’’.
(d) EFFECTIVE DATE.—This section shall be consid-
ered to have been in effect as of January 1, 1977.
SEC. 772. APPLICABILITY OF DISASTER LOAN COLLAT-
ERAL REQUIREMENTS UNDER THE SMALL BUSINESS ACT.
Section 324(d) of the Consolidated Farm and Rural Devel-
opment Act (7 U.S.C. 1964(d)) is amended—
(1) by striking ‘‘(d) All loans’’ and inserting the
following:
‘‘(d) REPAYMENT.—
‘‘(1) IN GENERAL.— All loans’’; and
(2) by adding at the end the following:
‘‘(2) NO BASIS FOR DENIAL OF LOAN.—
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), the Secretary shall not deny a loan
under this subtitle to a borrower by reason of the
fact that the borrower lacks a particular amount
of collateral for the loan if the Secretary is rea-
sonably certain that the borrower will be able to
repay the loan.
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‘‘(B) REFUSAL TO PLEDGE AVAILABLE COL-
LATERAL.—The Secretary may deny or cancel a
loan under this subtitle if a borrower refuses to
pledge available collateral on request by the Sec-
retary.’’.
SEC. 773. NOTIFICATION OF RECALLS OF DRUGS AND
DEVICES. (a) MATTHEW’S LAW.—This section shall be re-
ferred to as ‘‘Matthew’s Law’’.
(b) DRUGS.—Section 505 of the Federal Food, Drug,
and Cosmetic Act (21 U.S.C. 355) is amended by adding
at the end the following:
‘‘(o)(1) If the Secretary withdraws an application for
a drug under paragraph (1) or (2) of the first sentence of
subsection (e) and a class I recall for the drug results, the
Secretary shall take such action as the Secretary may deter-
mine to be appropriate to ensure timely notification of the
recall to individuals that received the drug, including using
the assistance of health professionals that prescribed or dis-
pensed the drug to such individuals.
‘‘(2) In this subsection:
‘‘(A) The term ‘Class I’ refers to the correspond-
ing designation given recalls in subpart A of part 7
of title 21, Code of Federal Regulations, or a successor
regulation.
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‘‘(B) The term ‘recall’ means a recall, as defined
in subpart A of part 7 of title 21, Code of Federal
Regulations, or a successor regulation, of a drug.’’.
(c) DEVICES.—Section 518(e) of such Act (21 U.S.C.
360h(e)) is amended—
(1) in the last sentence of paragraph (2), by in-
serting ‘‘or if the recall is a class I recall,’’ after ‘‘can-
not be identified’’; and
(2) by adding at the end the following:
‘‘(4) In this subsection, the term ‘Class I’ refers to the
corresponding designation given recalls in subpart A of
part 7 of title 21, Code of Federal Regulations, or a succes-
sor regulation.’’.
(d) CONFORMING AMENDMENT.—Section 705(b) of
such Act (21 U.S.C. 375(b)) is amended—
(1) by striking ‘‘or gross’’ and inserting ‘‘gross’’;
and
(2) by striking the period and inserting ‘‘, or a
class I recall of a drug or device as described in sec-
tion 505(o)(1) or 518(e)(2).’’.
(e) EFFECTIVE DATE.—This section shall take effect
one day after the date of enactment of this Act.
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TITLE VIII—AGRICULTURAL CREDIT
RESTORATION ACT
SEC. 801. SHORT TITLE. This title may be cited as
the ‘‘Agricultural Credit Restoration Act’’.
SEC. 802. AMENDMENTS TO THE CONSOLIDATED FARM
AND RURAL DEVELOPMENT ACT. (a) Section 343(a)(12)(B)
of the Consolidated Farm and Rural Development Act (7
U.S.C. 1991(a)(12)(B)) is amended to read as follows:
‘‘(B) EXCEPTIONS.—The term ‘debt forgiveness’
does not include—
‘‘(i) consolidation, rescheduling, reamortiza-
tion, or deferral of a loan;
‘‘(ii) 1 debt forgiveness in the form of a re-
structuring, write-down, or net recovery buy-out,
which occurred prior to date of enactment and
was due to a financial problem of the borrower
relating to a natural disaster or a medical con-
dition of the borrower or of a member of the im-
mediate family of the borrower (or, in the case
of a borrower that is an entity, a principal
owner of the borrower or a member of the imme-
diate family of such an owner); and
‘‘(iii) any restructuring, write-down, or net
recovery buy-out provided as a part of a resolu-
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tion of a discrimination complaint against the
Secretary.’’.
(b) Section 355(c)(2) of such Act (7 U.S.C. 2003(c)(2))
is amended to read as follows:
‘‘(2) RESERVATION AND ALLOCATION.—
‘‘(A) IN GENERAL.—The Secretary shall, to
the greatest extent practicable, reserve and allo-
cate the proportion of each State’s loan funds
made available under subtitle B that is equal to
that State’s target participation rate for use by
the socially disadvantaged farmers or ranchers
in that State. The Secretary shall, to the extent
practicable, distribute the total so derived on a
county by county basis according to the number
of socially disadvantaged farmers or ranchers in
the county.
‘‘(B) REALLOCATION OF UNUSED FUNDS.—
The Secretary may pool any funds reserved and
allocated under this paragraph with respect to a
State that are not used as described in subpara-
graph (A) in a State in the first 10 months of
a fiscal year with the funds similarly not so used
in other States, and may reallocate such pooled
funds in the discretion of the Secretary for use
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by socially disadvantaged farmers and ranchers
in other States.’’.
(c) Section 373(b)(1) of such Act (7 U.S.C.
2008h(b)(1)) is amended to read as follows:
‘‘(1) IN GENERAL.—Except as provided in this
paragraph and in paragraph (2), the Secretary may
not make or guarantee a loan under subtitle A or B
to a borrower who received debt forgiveness on a loan
made or guaranteed under this title unless such for-
giveness occurred prior to April 4, 1996.’’.
SEC. 803. REGULATIONS. Not later than 90 days after
the date of the enactment of this Act, the Secretary of Agri-
culture shall promulgate regulations necessary to carry out
the amendments made by this Act, without regard to—
(1) the notice and comment provisions of section
553 of title 5, United States Code; and
(2) the statement of policy of the Secretary of
Agriculture relating to notices of proposed rulemaking
and public participation in rulemaking that became
effective on July 24, 1971 (36 Fed. Reg. 13804).
TITLE IX—INDIA-PAKISTAN RELIEF ACT
SEC. 901. SHORT TITLE. This title may be cited as
the ‘‘India-Pakistan Relief Act of 1998’’.
SEC. 902. WAIVER AUTHORITY. (a) AUTHORITY.—The
President may waive for a period not to exceed one year