I
105TH CONGRESS
1ST SESSION
H. R. 2185
To establish equitable service for customers and equal opportunity for
employees of the United States Department of Agriculture.
IN THE HOUSE OF REPRESENTATIVES
JULY 17, 1997
Mrs. CLAYTON (for herself, Mr. HILLIARD, Mr. BISHOP, Mr. THOMPSON, Mr.
HASTINGS of Florida, Ms. JACKSON-LEE of Texas, Ms. KILPATRICK, Mr.
LEWIS of Georgia, Ms. NORTON, Mr. SCOTT, Mr. WYNN, Mr. BONIOR,
Mr. DIXON, Mr. ABERCROMBIE, Mr. CLAY, Mrs. MEEK of Florida, Ms.
BROWN of Florida, Mr. SERRANO, Ms. EDDIE BERNICE JOHNSON of
Texas, Mr. BROWN of Ohio, Ms. MCKINNEY, Mr. CONYERS, Mr. WATT
of North Carolina, Ms. WATERS, and Mrs. MINK of Hawaii) introduced
the following bill; which was referred to the Committee on Agriculture,
and in addition to the Committees on Government Reform and Oversight,
and Ways and Means, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall within
the jurisdiction of the committee concerned
A BILL
To establish equitable service for customers and equal oppor-
tunity for employees of the United States Department
of Agriculture.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘USDA Accountability
and Equity Act of 1997’’.
SEC. 2. DEFINITIONS.
As used in this Act:
(1) The term ‘‘Department’’ means the Depart-
ment of Agriculture.
(2) The term ‘‘Secretary’’ means the Secretary
of Agriculture.
(3) The term ‘‘Assistant Secretary’’ means the
Assistant Secretary of Agriculture for Administra-
tion.
(4) The term ‘‘socially disadvantaged customer’’
means socially disadvantaged farmer or rancher, as
defined in section 355(e)(2) of the Consolidated
Farm and Rural Development Act.
TITLE I—PROGRAM
ACCOUNTABILITY
SEC. 101. CONVERSION OF COUNTY COMMITTEES.
Effective 90 days after the date of the enactment of
this Act, section 8(a)(5)(B) of the Soil Conservation and
Domestic Allotment Act (16 U.S.C. 590h(a)(5)(B)) is
amended—
(1) by striking clause (ii) and inserting the fol-
lowing:
‘‘(ii) Any such committee shall consist of not
fewer than 5 nor more than 7 members as follows:
‘‘(I) Not fewer than 3 and not more than
5 members shall be fairly representative of the
agricultural producers in the county or area,
and shall be elected by the agricultural produc-
ers in such county or area under such proce-
dures as the Secretary may prescribe.
‘‘(II) two members shall be demographi-
cally representative of members of groups of ag-
ricultural producers in the county or area who,
in the absence of the members, would be under-
represented on the committee, and shall be ap-
pointed by the Secretary, based on rec-
ommendations made by the underrepresented
groups. If the Secretary makes such an ap-
pointment from among persons not so rec-
ommended, the Secretary shall provide the rea-
sons therefor upon request.’’; and
(2) by adding at the end the following:
‘‘(vi) The civil service laws shall apply to all
persons performing functions for any county, area,
or local committee, subject to such regulations as
the Secretary may prescribe taking into account the
recommendations made under section 102 of the
USDA Accountability and Equity Act of 1997.
‘‘(vii) The county executive director of a county,
area, or local committee, or such other person as the
Secretary may select, shall have sole responsibility
for making loan determinations under credit pro-
grams administered by the Department of Agri-
culture in the county, area, or locality, subject to the
approval of the State director of the Consolidated
Farm Service Agency.’’.
SEC. 102. CONVERSION OF NONFEDERAL FARM SERVICE
AGENCY COUNTY COMMITTEE EMPLOYEES
TO FEDERAL CIVIL SERVICE STATUS.
(a) COUNTY AND AREA OFFICE STAFFS.—
(1) IN GENERAL.—Subparagraph (E) of section
8(b)(5) of the Soil Conservation and Domestic Allot-
ment Act (16 U.S.C. 590h(b)(5)(E)) is amended to
read as follows:
‘‘(E) REGULATIONS
AND
COUNTY
AND
AREA
OFFICE
EMPLOYEES.—(i)(I) The Secretary shall
issue such regulations as the Secretary considers
necessary relating to the selection of members to
and the exercise of the functions of the respective
committees, and to the administration through such
committees of the programs described in subpara-
graph (D).
‘‘(II) Regulations governing payments or grants
under this subsection, whenever practicable, shall be
classified on the basis of being related to a soil-de-
pleting practice or a soil-building practice.
‘‘(ii) Employees performing services for county
and area committees may be appointed only by the
Secretary or the designee of the Secretary.’’.
(2) CONVERSION OF PERMANENT COUNTY AND
AREA OFFICE EMPLOYEES.—Subject to regulations
of the Office of Personnel Management, employees
of county committees employed pursuant to section
8(b) of the Soil Conservation and Domestic Allot-
ment Act (16 U.S.C. 590h(b)) who, on the effective
date of this section, are so employed under an ap-
pointment not limited to 1 year or less shall be con-
verted to Federal civil service appointments, as fol-
lows:
(A) Employees who have completed 3 years
of service shall be given career civil service ap-
pointments.
(B) Employees who have completed less
than 3 years of service shall be given career-
conditional civil service appointments.
(3) CONVERSION OF TEMPORARY COUNTY AND
AREA OFFICE EMPLOYEES.—Subject to regulations
of the Office of Personnel Management, employees
of county committees employed pursuant to section
8(b) of the Soil Conservation and Domestic Allot-
ment Act (16 U.S.C. 590h(b)) who, on the effective
date of this section, are so employed under an ap-
pointment limited to 1 year or less shall, subject to
the discretion of the Secretary, be converted to tem-
porary Federal civil service appointments.
(b) OTHER AMENDMENTS.—
(1) DEPARTMENT
OF
AGRICULTURE
REORGA-
NIZATION ACT OF 1994.—Section 226 of the Depart-
ment of Agriculture Reorganization Act of 1994 (7
U.S.C. 6932) is amended—
(A) by striking subsection (e);
(B) in subsection (g), by striking ‘‘(f)’’ and
inserting ‘‘(e)’’; and
(C) 
by 
redesignating 
subsections 
(f)
through (h) as subsections (e) through (g), re-
spectively.
(2) TITLE 5 OF THE UNITED STATES CODE.—
Title 5, United States Code, is amended—
(A) 
in 
sections 
3502(a)(C)(i) 
and
6312(a)(1) by striking ‘‘Act;’’ and inserting
‘‘Act, but only if that individual was first em-
ployed as an employee of such a county commit-
tee or of such a committee or association of
producers before the effective date of section
102 of the USDA Accountability and Equity
Act of 1997;’’; and
(B) in sections 5306(a)(1)(C), 8331(1)(F),
8701(a)(8), and 8901(1)(G) by inserting ‘‘first’’
before ‘‘employed’’ and by striking ‘‘16;’’ and
inserting ‘‘16 before the effective date of section
102 of the USDA Accountability and Equity
Act of 1997;’’.
(c) EFFECTIVE DATE.—This section and the amend-
ments made by this section shall take effect 180 days after
the date of the enactment of this Act.
TITLE II—PROGRAM EQUITY
SEC. 201. ACCESS TO CREDIT.
Section 373(a) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 2008h(a)) is amended to read
as follows:
‘‘(a) DELINQUENT BORROWERS PROHIBITED FROM
OBTAINING DIRECT OPERATING LOANS; EXCEPTIONS.—
‘‘(1) PROHIBITION.—Except as provided in
paragraph (2), the Secretary may not make a direct
operating loan under subtitle B to a borrower who
is delinquent on any loan made or guaranteed under
this title.
‘‘(2) EXCEPTIONS.—
‘‘(A) IN
GENERAL.—Paragraph (1) shall
not apply to a borrower if—
‘‘(i) the borrower was granted a prin-
cipal or interest write-down under section
353 with respect to the loan on which the
borrower is delinquent, and the delin-
quency is a result of conditions the bor-
rower could not control;
‘‘(ii) there are no unsatisfied judg-
ments against the borrower;
‘‘(iii) 2 years has passed since a prin-
cipal or interest write-down was granted
under section 353 to the borrower;
‘‘(iv) the Secretary determines that
the borrower has acted in a fiscally respon-
sible manner for 2 years before application
for the direct operating loan; or
‘‘(v) the farm operations of the bor-
rower are pending liquidation.
‘‘(B) 
REQUIREMENTS
APPLICABLE
TO
LOANS TO DELINQUENT BORROWERS.—Any di-
rect operating loan to a borrower to whom a
paragraph of the preceding sentence applies
shall be made subject to such requirements and
conditions as may be necessary to ensure that
the borrower does not become delinquent on the
loan.’’.
SEC. 202. LEASE BACK, BUY BACK OPPORTUNITIES.
Out of any money in the Treasury of the United
States not otherwise appropriated, there are appropriated
to the Secretary of Agriculture $10,000,000 for each of
fiscal years 1998 and 1999 for leases or contracts to sell
real property acquired under the Consolidated Farm and
Rural Development Act to beginning farmers or ranchers
(as defined under section 343(a)(8) of such Act) whose
operations were shown by a farm and home plan to cash
flow during the 3 years before April 4, 1996.
SEC. 203. DEBT WRITE-DOWNS NOT TREATED AS INCOME
FOR TAX PURPOSES.
Section 353(d) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 2001(d)) is amended by add-
ing at the end the following:
‘‘(3) TAX TREATMENT OF WRITE-DOWNS.—No
amount shall be includible in gross income for pur-
poses of the Internal Revenue Code of 1986 by rea-
son of any discharge of indebtedness under this sec-
tion.’’.
SEC. 204. ACCESSIBILITY OF HOUSING LOANS.
Section 502(a) of the Housing Act of 1949 (42
U.S.C. 1472(a)) is amended by adding after paragraph
(3) the following new paragraph:
‘‘(4) The Secretary may not deny eligibility to any
applicant for a loan under this section on the basis of the
ranchers (as defined in section 355(e)(2) of the Con-
solidated Farm and Rural Development Act).’’.
(b) SAME-YEAR PAYMENTS FOR CONTRACTS IN THE
ENVIRONMENTAL QUALITY INCENTIVES PROGRAM.—Sec-
tion 1240G of such Act (16 U.S.C. 3839aa–7) is amended
by striking subsection (c).
SEC. 206. PROGRAM EQUITY FUNDING.
Section 1447(b) of the National Agricultural Re-
search, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3222b(b)) is amended to read as follows:
‘‘(b) APPROPRIATION.—
‘‘(1) IN GENERAL.—Out of any money in the
Treasury of the United States not otherwise appro-
priated, there are appropriated to the Secretary of
Agriculture $15,000,000 for fiscal year 1998 and for
each succeeding fiscal year to carry out this section.
‘‘(2) 
AVAILABILITY.—Amounts 
appropriated
under paragraph (1) shall remain available until ex-
pended.’’.
SEC. 207. ADVISORY COMMITTEE TO STUDY WHETHER
LAND 
GRANT 
INSTITUTIONS 
ARE 
BEING
FUNDED EQUITABLY.
(a) ESTABLISHMENT.—The Secretary shall establish
in the Department a bipartisan advisory committee to con-
duct a study of funding of institutions of higher education