In the Senate of the United States,
August 25 (legislative day, August 18), 1994.
Resolved, That the bill from the House of Representa-
tives (H.R. 4217) entitled ‘‘An Act to reform the Federal
crop insurance program, and for other purposes’’, do pass
with the following
AMENDMENT:
Strike out all after the enacting clause and insert:
SECTION. 1. TABLE OF CONTENTS.
The table of contents of this Act is as follows:
Sec. 1. Table of contents.
TITLE I—FEDERAL CROP INSURANCE REFORM
SUBTITLE A—CATASTROPHIC RISK AND ADDITIONAL COVERAGE INSURANCE
Sec. 1100. Short title; references.
Sec. 1101. Authority to offer insurance.
Sec. 1102. Catastrophic risk protection.
Sec. 1103. General coverage levels.
Sec. 1104. Premiums.
Sec. 1105. Eligibility.
Sec. 1106. Yield determinations.
Sec. 1107. Insurance policies.
Sec. 1108. Claims for losses.
Sec. 1109. Reinsurance.
Sec. 1110. Funding.
Sec. 1111. Advisory Committee for Federal Crop Insurance.
Sec. 1112. Management of Corporation.
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SUBTITLE B——NONINSURED ASSISTANCE PROGRAM
Sec. 1201. Noninsured assistance program.
Sec. 1202. Payment and income limitations.
SUBTITLE C—MISCELLANEOUS
Sec. 1301. Ineligibility for catastrophic risk and noninsured assistance payments.
Sec. 1302. Prevented planting.
Sec. 1303. Conforming amendments.
Sec. 1304. Disaster assistance.
Sec. 1305. Use of Commodity Credit Corporation funds to cover certain costs for
fall-planted 1995 crops.
Sec. 1306. Poultry labeling, public hearings.
Sec. 1307. Agriculture employees first amendment rights.
Sec. 1308. Adjusted cost of thrifty food plan.
Sec. 1309. Effective dates.
Sec. 1310. Termination of authority.
TITLE II—DEPARTMENT OF AGRICULTURE REORGANIZATION
SUBTITLE A—SHORT TITLE; PURPOSE; DEFINITIONS
Sec. 2101. Short title.
Sec. 2102. Purpose.
Sec. 2103. Definitions.
SUBTITLE B—GENERAL AUTHORITIES OF THE SECRTETARY
Sec. 2201. Delegation of functions to the Secretary.
Sec. 2202. Reorganization.
Sec. 2203. Personnel reductions.
Sec. 2204. Consolidation of headquarters offices.
Sec. 2205. Reports by the Secretary.
SUBTITLE C—NATIONAL APPEALS DIVISION
Sec. 2301. Definitions.
Sec. 2302. National Appeals Division and Director.
Sec. 2303. Transfer of functions.
Sec. 2304. Personnel of the Division.
Sec. 2305. Notice and opportunity for hearing.
Sec. 2306. Informal hearings.
Sec. 2307. Rights of participants.
Sec. 2308. Division hearings and Director review.
Sec. 2309. Judicial review.
Sec. 2310. Implementation of final determinations of Division.
Sec. 2311. Decisions of State and county committees.
Sec. 2312. Prohibition on adverse action while appeal is pending.
Sec. 2313. Relationship to other laws.
Sec. 2314. Evaluation of agency decisionmakers and other employees.
Sec. 2315. Conforming amendments.
SUBTITLE D—FARM AND INTERNATIONAL TRADE SERVICES
Sec. 2401. Under Secretary for Farm and International Trade Services.
Sec. 2402. Farm Service Agency.
Sec. 2403. State and county committees.
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(b) REFERENCES
TO FEDERAL CROP INSURANCE
ACT.—Except as otherwise expressly provided, whenever in
this title an amendment or repeal is expressed in terms of
an amendment to, or repeal of, a section or other provision,
the reference shall be considered to be made to a section or
other provision of the Federal Crop Insurance Act (7 U.S.C.
1501 et seq.).
SEC. 1101. AUTHORITY TO OFFER INSURANCE.
Section 508 (7 U.S.C. 1508) is amended—
(1) by striking subsection (a) and inserting the
following new subsection:
‘‘(a) AUTHORITY TO OFFER INSURANCE.—
‘‘(1) IN GENERAL.—If sufficient actuarial data
are available (as determined by the Corporation), the
Corporation may insure, or provide reinsurance for
insurers of, producers of agricultural commodities
grown in the United States under 1 or more plans of
insurance determined by the Corporation to be adapt-
ed to the agricultural commodity concerned. To qual-
ify for coverage under a plan of insurance, the losses
of the insured commodity shall be due to drought,
flood, or other natural disaster (as determined by the
Secretary).
‘‘(2) PERIOD.—Except in the cases of tobacco
and potatoes, insurance shall not extend beyond the
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period during which the insured commodity is in the
field. As used in the preceding sentence, in the case
of aquacultural species, the term ‘field’ means the en-
vironment in which the commodity is produced.
‘‘(3) EXCLUSIONS.—Insurance provided under
this subsection shall not cover losses due to—
‘‘(A) the neglect or malfeasance of the pro-
ducer;
‘‘(B) the failure of the producer to reseed to
the same crop in such areas and under such cir-
cumstances as it is customary to so reseed; or
‘‘(C) the failure of the producer to follow
good farming practices (as determined by the
Secretary).’’;
(2) by striking subsections (c), (e), (g), (l), and
(n); and
(3) by redesignating subsections (b), (d), (f), (h),
(i), (j), (k), and (m) as subsections (g) through (n),
respectively.
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SEC. 1102. CATASTROPHIC RISK PROTECTION.
Section 508 (7 U.S.C. 1508) (as amended by section
1101) is further amended by inserting after subsection (a)
the following new subsection:
‘‘(b) CATASTROPHIC RISK PROTECTION.—
‘‘(1) IN GENERAL.—The Corporation shall offer a
catastrophic risk protection plan to indemnify pro-
ducers for crop loss due to loss of yield or prevented
planting when the producer is unable, because of
drought, flood, or other natural disaster (as deter-
mined by the Secretary), to plant crops for harvest on
the acreage for that crop year.
‘‘(2) AMOUNT OF COVERAGE.—Catastrophic risk
protection shall offer a producer 50 percent loss in
yield coverage, on an individual yield or area yield
basis, indemnified at 60 percent of the expected mar-
ket price, or a comparable coverage (as determined by
the Corporation).
‘‘(3) PAYMENT.—A catastrophic risk payment
may reflect a reduction that is proportionate to the
lack of out-of-pocket expenses associated with the fail-
ure to plant, grow, or harvest the crop, as determined
by the Corporation.
‘‘(4) YIELD AND LOSS BASIS.—A producer shall
have the option of basing the catastrophic coverage of
the producer on an individual yield and loss basis or
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on an area yield and loss basis, if both options are
offered by the Corporation.
‘‘(5) SALE OF CATASTROPHIC RISK COVERAGE.—
‘‘(A) IN GENERAL.—Catastrophic risk cov-
erage may be offered by—
‘‘(i) private insurance providers, if
available in an area; and
‘‘(ii) at the option of the Secretary that
is based on considerations of need, local of-
fices of the United States Department of Ag-
riculture (referred to in this title as the ‘De-
partment’).
‘‘(B) NEED.—For purposes of considering
need under subparagraph (A)(ii), the Secretary
may take into account the most efficient and
cost-effective use of resources, the availability of
personnel, fairness to local producers, the needs
and convenience of local producers, and the
availability of private insurance carriers.
‘‘(6) ADMINISTRATIVE FEE.—
‘‘(A) IN GENERAL.—As a condition of cata-
strophic risk protection, a producer shall pay an
administrative fee. The administrative fee shall
be $50 per crop per county, but not to exceed
$100 per producer per county. The administra-
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tive fee shall be paid at the service point, at the
local office of the Department, or to the approved
insurance provider, at the time of application.
‘‘(B) FEE
WAIVERS.—The administrative
fee shall be waived—
‘‘(i) for farmers of limited resources (as
defined by the Corporation); or
‘‘(ii) if the producer elects to purchase
additional protection at 65 percent or more
of the recorded or appraised average yield
and 100 percent of the expected market
price, or an equivalent coverage, offered by
an approved insurance provider.
‘‘(C) USE
OF
FEES
COLLECTED.—Funds
collected as administrative fees shall be retained
by the Department or the approved insurance
provider for operating and administrative ex-
penses for the delivery of catastrophic risk pro-
tection policies.
‘‘(7) PARTICIPATION
REQUIREMENT.—A pro-
ducer may obtain catastrophic risk coverage for a
crop of the producer on land in the county only if the
producer obtains such coverage for the crop on all in-
surable land of the producer in that county.
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‘‘(8) 
ELIGIBILITY
FOR
DEPARTMENT
PRO-
GRAMS.—
‘‘(A) IN GENERAL.—To be eligible for any
price support or production adjustment program
or any benefit described in section 371 of the
Consolidated Farm and Rural Development Act,
the producer must obtain at least the cata-
strophic level of insurance for each crop of eco-
nomic significance grown on each farm in the
county in which the producer has an interest, if
insurance is available in the county for the crop.
‘‘(B) DEFINITION
OF
CROP
OF
ECONOMIC
SIGNIFICANCE.—As used in this paragraph, the
term ‘crop of economic significance’ means a
crop that has contributed, or is expected to con-
tribute, 10 percent or more of the total expected
value of all crops grown by the producer.
‘‘(9) LIMITATION DUE TO RISK.—The Corpora-
tion may limit catastrophic risk coverage in any
county or area, or on any farm, on the basis of the
insurance risk concerned.
‘‘(10) SIMPLIFICATION.—
‘‘(A) 
CATASTROPHIC
RISK
PROTECTION
PLANS.—In developing and carrying out the
policies and procedures for a catastrophic risk
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protection plan under this title, the Corporation
shall, to the maximum extent practicable, mini-
mize the paperwork required and the complexity
and costs of procedures governing applications
for, processing, and servicing of the plan for all
parties involved.
‘‘(B) OTHER PLANS.—To the extent that the
policies and procedures developed under subpara-
graph (A) may be applied to other plans of in-
surance offered under this title without jeopard-
izing the actuarial soundness or integrity of the
crop insurance program, the Corporation shall
apply the policies and procedures to the other
plans of insurance within a reasonable period of
time (as determined by the Corporation) after
the effective date of this paragraph.’’.
SEC. 1103. GENERAL COVERAGE LEVELS.
Section 508 (7 U.S.C. 1508) (as amended by section
1102) is further amended by inserting after subsection (b)
the following new subsection:
‘‘(c) GENERAL COVERAGE LEVELS.—
‘‘(1) IN GENERAL.—The Corporation shall offer
plans of insurance that provide levels of coverage that
are greater than the level available under catastrophic
risk protection under subsection (b). A producer may
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purchase such a plan only from an approved insur-
ance provider, if the private insurance is available.
Nothing in this paragraph restricts the Corporation
from offering insurance plans if coverage from private
insurance providers is unavailable.
‘‘(2) TRANSFER OF INSURANCE FILES.—If a pro-
ducer has already applied for catastrophic risk pro-
tection at the local office of the Department and elects
to purchase additional coverage, the insurance file for
the crop of the producer shall be transferred to the ap-
proved insurance provider servicing the additional
coverage crop policy.
‘‘(3) YIELD AND LOSS BASIS.—A producer shall
have the option of purchasing additional coverage
based on an individual yield and loss basis or on an
area yield and loss basis, if both options are offered
by the Corporation.
‘‘(4) LEVEL OF COVERAGE.—The level of coverage
shall be dollar denominated and may be purchased at
any level not to exceed 85 percent of the individual
yield or 95 percent of the area yield (as determined
by the Corporation). By the beginning of the 1996
crop year, the Corporation shall provide producers
with information on catastrophic risk and additional
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coverage in terms of dollar coverage (within the allow-
able limits of coverage provided in this paragraph).
‘‘(5) PRICE LEVEL.—The Corporation shall es-
tablish a price level for each commodity on which in-
surance is offered that—
‘‘(A) shall not be less than the projected
market price for the commodity (as determined
by the Corporation); or
‘‘(B) at the discretion of the Corporation,
may be based on the actual market price at the
time of harvest (as determined by the Corpora-
tion).
‘‘(6) PRICE ELECTIONS.—
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), insurance coverage shall be made
available to the producer on the basis of any
price election that equals or is less than the price
election established by the Corporation. The cov-
erage shall be quoted in terms of dollars per acre.
‘‘(B) MINIMUM
PRICE
ELECTIONS.—The
Corporation may establish minimum price elec-
tions below which levels of insurance shall not be
offered.
‘‘(C) WHEAT VARIETIES.—The Corporation
shall, over a period of time as determined prac-
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ticable by the Corporation, offer producers dif-
ferent price elections for varieties of wheat, in
addition to the standard price election, that re-
flect different market prices, as determined by
the Corporation. The Corporation shall offer ad-
ditional coverage for each variety determined
under this subparagraph and charge a premium
for each variety that is actuarially sound.
‘‘(7) SUBSTITUTE
COVERAGE
FOR
FIRE
AND
HAIL.—
‘‘(A) IN GENERAL.—For levels of coverage
65 percent or more of the recorded or appraised
average yield and 100 percent of the expected
market price, or an equivalent coverage, the pro-
ducer may elect to delete from the insurance cov-
erage provided under this title coverage against
damage caused by fire or hail, if an equivalent
or greater dollar amount of coverage for damage
caused by fire or hail is obtained from a private
fire or hail insurance provider.
‘‘(B) 
CREDIT
FOR
SUBSTITUTE
COV-
ERAGE.—On written notice of an election under
subparagraph (A) to the company issuing the
policy providing coverage under this title and
submission of evidence of substitute coverage on
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the commodity insured, the premium of the pro-
ducer shall be reduced by an amount determined
by the Corporation to be actuarially appro-
priate, taking into account the actuarial value of
the remaining coverage provided by the Corpora-
tion. The producer shall not be given a reduction
for an amount of premium determined to be
greater than the actuarial value of the protection
against losses caused by fire or hail that is in-
cluded in the coverage under this title for the
crop.
‘‘(8) STATE PREMIUM SUBSIDIES.—The Corpora-
tion may enter into agreements with any State or
agency of a State under which the State or agency
may pay to the approved insurance provider an addi-
tional premium subsidy to further reduce the portion
of the premium paid by the producers in the State.
‘‘(9) LIMITATION DUE TO RISK.—The Corpora-
tion may limit or refuse insurance in any county or
area, or on any farm, on the basis of the insurance
risk concerned.
‘‘(10) ADMINISTRATIVE FEE.—
‘‘(A) IN GENERAL.—As a condition of cov-
erage that is in addition to catastrophic risk
protection but less than 65 percent of the re-
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corded or appraised average yield and 100 per-
cent of the expected market price, or an equiva-
lent coverage, a producer shall pay an adminis-
trative fee. The administrative fee shall be $50
per crop per county, but not to exceed $100 per
producer per county. The administrative fee
shall be paid to the approved insurance provider
or the Department, as applicable, at the time of
application.
‘‘(B) FEE
WAIVERS.—The administrative
fee shall be waived—
‘‘(i) for farmers of limited resources (as
defined by the Corporation); or
‘‘(ii) if the producer elects to purchase
additional protection at 65 percent or more
of the recorded or appraised average yield
and 100 percent of the expected market
price, or an equivalent coverage, offered by
an approved insurance provider.
‘‘(C) USE
OF
FEES
COLLECTED.—Funds
collected as administrative fees shall be retained
by the approved insurance provider or the De-
partment, as applicable, for operating and ad-
ministrative expenses.’’.
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SEC. 1104. PREMIUMS.
Section 508 (7 U.S.C. 1508) (as amended by section
1103) is further amended by inserting after subsection (c)
the following new subsection:
‘‘(d) PREMIUMS.—
‘‘(1) LEVELS.—
‘‘(A) CATASTROPHIC
RISK
PROTECTION.—
For catastrophic risk protection coverage, the
amount of premium shall be sufficient to cover
anticipated losses and a reasonable reserve.
‘‘(B) ADDITIONAL COVERAGE.—For levels of
coverage below 65 percent of the recorded or ap-
praised average yield and 100 percent of the ex-
pected market price, or an equivalent coverage,
but greater than catastrophic risk protection cov-
erage, the amount of premium shall be sufficient
to cover anticipated losses, a reasonable reserve,
and an amount for operating and administra-
tive expenses (as determined by the Corporation)
that is less than the amount established for cov-
erage at 65 percent of the recorded or appraised
average yield and 100 percent of the expected
market price, or an equivalent coverage.
‘‘(C) HIGH COVERAGE.—For levels of cov-
erage of at least 65 percent of the recorded or ap-
praised average yield and 100 percent of the ex-
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pected market price, or an equivalent coverage,
the amount of premium shall be sufficient to
cover anticipated losses, a reasonable reserve,
and an amount to pay the operating and admin-
istrative expenses (as determined by the Corpora-
tion) on an industry-wide basis as a percentage
of the total premium.
‘‘(2) PAYMENT OF PART OF PREMIUM.—For the
purpose of encouraging the broadest possible partici-
pation, the Corporation shall pay a part of the pre-
mium equivalent to—
‘‘(A) for catastrophic risk protection cov-
erage, an amount equal to the premium estab-
lished under paragraph (1)(A);
‘‘(B) for levels of coverage below 65 percent
of the recorded and appraised average yield and
100 percent of the expected market price, or an
equivalent coverage, but greater than cata-
strophic risk protection, an amount equal to the
sum of the amount of premium established for
catastrophic risk protection coverage and the
amount for operating and administrative ex-
penses established under paragraph (1)(B); and
‘‘(C) for levels of coverage at or greater than
65 percent of the recorded and appraised yield
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and 100 percent of the expected market price, or
an equivalent coverage, on an individual or area
basis, an amount equal to the sum of—
‘‘(i) the premium established for—
‘‘(I) in the case of each of the
1995 and 1996 crop years, 50 percent
loss in yield indemnified at 80 percent
of the expected market price;
‘‘(II) in the case of the 1997 crop
year, 50 percent loss in yield indem-
nified at 77.5 percent of the expected
market price; and
‘‘(III) in the case of the 1998 and
each subsequent crop year, 50 percent
loss in yield indemnified at 75 percent
of the expected market price; and
‘‘(ii) the amount for operating and ad-
ministrative 
expenses 
established 
under
paragraph (1)(C).
‘‘(3) REDUCTIONS BY PRIVATE PROVIDERS.—If a
private insurance provider determines that the pro-
vider may provide insurance more efficiently than the
expense reimbursement amount set by the Corpora-
tion, the private insurance provider may, with the
approval of the Corporation, reduce the premium
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charged the insured by the amount of the efficiency.
A reduction pursuant to the preceding sentence shall
be subject to such rules, limitations, and procedures
as are established by the Corporation.
‘‘(4) INDIVIDUAL
AND
AREA
CROP
INSURANCE
COVERAGE.—The Corporation shall allow approved
insurance providers to offer a plan of insurance to
producers that combines both individual yield cov-
erage and area yield coverage at a premium rate de-
termined by the provider under the following condi-
tions:
‘‘(A) The individual yield coverage shall be
equal to or greater than catastrophic risk protec-
tion as described in subsection (b).
‘‘(B) The combined policy shall include area
yield coverage that is offered by the Corporation
or similar area coverage, as determined by the
Corporation.
‘‘(C) The Corporation shall provide reinsur-
ance on the area yield portion of the combined
policy at the request of the provider, except that
the provider shall agree to pay to the producer
any portion of the area yield and loss indemnity
payment received from the Corporation or a
commercial reinsurer that exceeds the individual
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indemnity payment made by the provider to the
producer.
‘‘(D) The Corporation shall pay a part of
the premium equivalent to—
‘‘(i) the amount authorized under
paragraph (2) (except provisions regarding
operating and administrative expenses);
and
‘‘(ii) the amount of operating and ad-
ministrative expenses authorized by the Cor-
poration for the area yield coverage portion
of the combined policy.
‘‘(E) The provider shall provide all under-
writing services for the combined policy, includ-
ing the determination of individual yield cov-
erage premium rates, the terms and conditions of
the policy, and the acceptance and classification
of applicants into risk categories, subject to sub-
paragraph (F).
‘‘(F) The Corporation shall approve the
combined policy unless the Corporation deter-
mines that the policy is not actuarially sound or
that the interests of producers are not adequately
protected.’’.
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SEC. 1105. ELIGIBILITY.
(a) IN GENERAL.—Section 508 (7 U.S.C. 1508) (as
amended by section 1104) is further amended by inserting
after subsection (d) the following new subsection:
‘‘(e) ELIGIBILITY.—
‘‘(1) IN
GENERAL.—To participate in cata-
strophic risk protection coverage under this section, a
producer shall submit an application at the local of-
fice of the Department or to an approved insurance
provider.
‘‘(2) SALES CLOSING DATE.—For coverage under
this title, each producer shall purchase crop insurance
on or before the sales closing date for the crop by pro-
viding the required information and executing the re-
quired documents. Subject to the goal of ensuring ac-
tuarial soundness for the crop insurance program, the
sales closing date shall be established by the Corpora-
tion to maximize convenience to producers in obtain-
ing benefits under price and production adjustment
programs of the Department. Beginning with the
1995 crop year, the Corporation shall establish, for an
insurance policy for each insurable crop that is plant-
ed in the spring, a sales closing date that is 30 days
earlier than the corresponding sales closing date that
was established for the 1994 crop year.
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‘‘(3) RECORDS.—For coverage under this title,
each producer shall provide records, acceptable to the
Corporation, of previous acreage and production or
accept a yield determined by the Corporation.
‘‘(4) REPORTING.—For coverage under this title,
each producer shall report acreage planted and pre-
vented from planting by the designated acreage re-
porting date for the crop and location as established
by the Corporation.’’.
(b) PRODUCER ELIGIBILITY.—Section 520 (7 U.S.C.
1520) is amended to read as follows:
‘‘SEC. 520. PRODUCER ELIGIBILITY.
‘‘Except as otherwise provided in this title, a producer
shall not be denied insurance under this title if—
‘‘(1) for purposes of catastrophic risk protection
coverage, the producer is a ‘person’ (as defined by the
Secretary); and
‘‘(2) for purposes of any other plan of insurance,
the producer is 18 years of age and has a bona fide
insurable interest in a crop as an owner-operator,
landlord, tenant, or sharecropper.’’.
SEC. 1106. YIELD DETERMINATIONS.
Section 508 (7 U.S.C. 1508) (as amended by section
1105(a)) is further amended by inserting after subsection
(e) the following new subsection:
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‘‘(f) YIELD DETERMINATIONS.—
‘‘(1) IN GENERAL.—Subject to paragraph (2), the
Corporation shall implement crop insurance under-
writing rules that ensure that yield coverage is pro-
vided to eligible producers participating in the Fed-
eral crop insurance program.
‘‘(2) YIELD COVERAGE PLANS.—
‘‘(A) ACTUAL PRODUCTION HISTORY.—Sub-
ject to subparagraph (B), the yield for a crop
shall be based on the actual production history
for the crop, if the crop was produced on the
farm without penalty during each of the 4 crop
years immediately preceding the crop year for
which actual production history is being estab-
lished, building up to a production data base for
each of the 10 consecutive crop years preceding
the crop year for which actual production his-
tory is being established.
‘‘(B) ASSIGNED
YIELD.—If the producer
does not provide satisfactory evidence of the yield
of a commodity under subparagraph (A), the
producer shall be assigned a yield that is not less
than 65 percent of the transitional yield of the
producer (adjusted to reflect actual production
reflected in the records acceptable to the Corpora-
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tion for continuous years), as specified in regula-
tions issued by the Corporation based on produc-
tion history requirements.
‘‘(C) AREA YIELD.—The Corporation may
offer a crop insurance plan based on an area
yield that allows an insured producer to qualify
for an indemnity if a loss has occurred in an
area (as specified by the Corporation) in which
the farm of the producer is located. Under an
area yield plan, an insured producer shall be al-
lowed to select the level of area production at
which an indemnity will be paid consistent with
such terms and conditions as are established by
the Corporation.
‘‘(D) COMMODITY-BY-COMMODITY BASIS.—A
producer may choose between individual yield or
area yield coverage or combined coverage (as
provided in subsection (d)(4)), if available, on a
commodity-by-commodity basis.
‘‘(3) NOTICE.—The Corporation shall ensure that
producers are given adequate notice of the applicable
yield coverage provisions of this section in advance of
the crop insurance application period for the crops to
which the provisions first will apply.
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‘‘(4) TRANSITIONAL YIELDS FOR PRODUCERS OF
FEED OR FORAGE.—
‘‘(A) IN GENERAL.—If a producer does not
provide satisfactory evidence of the yield under
paragraph (2)(A), the producer shall be assigned
a yield that is at least 80 percent of the transi-
tional yield established by the Corporation (ad-
justed to reflect the actual production history of
the producer) if the Secretary determines that—
‘‘(i) the producer grows feed or forage
primarily for on-farm use in a livestock,
dairy, or poultry operation; and
‘‘(ii) over 50 percent of the net farm
income of the producer is derived from the
livestock, dairy, or poultry operation.
‘‘(B) YIELD
CALCULATION.—The Corpora-
tion shall—
‘‘(i) for the first year of participation
of a producer, provide the assigned yield
under this paragraph to the producer of feed
or forage; and
‘‘(ii) for the second year of participa-
tion of the producer, apply the actual pro-
duction history or assigned yield require-
ment, as provided in this subsection.
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‘‘(C) TERMINATION
OF
AUTHORITY.—The
authority provided by this paragraph shall ter-
minate on the date that is 2 years after the effec-
tive date of this paragraph.’’.
SEC. 1107. INSURANCE POLICIES.
Subsection (g) of section 508 (7 U.S.C. 1508) (as redes-
ignated by section 1101(3)) is amended—
(1) in paragraph (1), by striking ‘‘(a)’’ and in-
serting ‘‘(c)’’;
(2) by striking paragraph (2) and inserting the
following new paragraph:
‘‘(2) PREPARATION OF POLICIES.—A policy or
other material submitted to the Corporation under
this subsection may be prepared without regard to the
limitations specified in this title, including the re-
quirements concerning the levels of coverage and rates
and the requirement that a price level for each com-
modity insured shall equal the projected market price
for the commodity as established by the Corporation.
The policy may be subsidized only at an amount
equivalent to coverage authorized under this title.’’;
(3) in paragraph (3)—
(A) in the first sentence, by striking ‘‘taking
into consideration the risks covered by the policy
or other material’’; and
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(B) in the second sentence, by inserting
‘‘with a private insurance provider’’ after ‘‘rein-
surance agreement’’; and
(4) by striking paragraph (4) and inserting the
following new paragraphs:
‘‘(4) REQUIRED PUBLICATION.—Any policy, pro-
vision of a policy, or rate approved under this sub-
section shall be published as a notice in the Federal
Register and made available to each person who con-
tracts with or is reinsured by the Corporation under
the same terms and conditions as are applicable be-
tween the Corporation and the submitting person.
‘‘(5) PILOT COST OF PRODUCTION RISK PROTEC-
TION PLAN.—
‘‘(A) IN GENERAL.—The Corporation shall
offer, to the extent practicable, a cost of produc-
tion risk protection plan of insurance that would
indemnify producers (including new producers)
for insurable losses as provided in this para-
graph.
‘‘(B) PILOT BASIS.—The cost of production
risk protection plan shall—
‘‘(i) be established as a pilot project for
each of the 1996 and 1997 crop years; and
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‘‘(ii) be carried out in a number of
counties that is determined by the Corpora-
tion to be adequate to provide a comprehen-
sive evaluation of the feasibility, effective-
ness, and demand among producers for the
plan.
‘‘(C) INSURABLE LOSS.—An insurable loss
shall be incurred by a producer if the gross in-
come of the producer (as determined by the Cor-
poration) is less than an amount determined by
the Corporation, as a result of a reduction in
yield or price resulting from an insured cause.
‘‘(D) DEFINITION OF NEW PRODUCER.—As
used in this paragraph, the term ‘new producer’
means a person that has not been actively en-
gaged in farming for a share of the production
of the insured crop for more than 2 crop years,
as determined by the Secretary.
‘‘(6) ADDITIONAL PREVENTED PLANTING POLICY
COVERAGE.—
‘‘(A) IN
GENERAL.—Beginning with the
1995 crop year, the Corporation shall offer to
producers additional prevented planting coverage
that insures producers against losses in accord-
ance with this paragraph.
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‘‘(B) APPROVED INSURANCE PROVIDERS.—
Additional prevented planting coverage shall be
offered by the Corporation through approved in-
surance providers.
‘‘(C) TIMING OF LOSS.—A crop loss shall be
covered by the additional prevented planting cov-
erage if—
‘‘(i) crop insurance policies were ob-
tained for—
‘‘(I) the crop year the loss was ex-
perienced; and
‘‘(II) the crop year immediately
preceding the year of the prevented
planting loss; and
‘‘(ii) the cause of the loss occurred—
‘‘(I) after the sales closing date for
the crop in the crop year immediately
preceding the loss; and
‘‘(II) before the sales closing date
for the crop in the year in which the
loss is experienced.
‘‘(7) PILOT TRANSITIONAL YIELD PROGRAM FOR
NEW PRODUCERS.—
‘‘(A) INCREASED
TRANSITIONAL
YIELD.—
The Corporation shall offer, to the extent prac-
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ticable, a transitional yield program for new
producers to provide 110 percent of the transi-
tional yield established by the Corporation.
‘‘(B) PILOT BASIS.—The transitional yield
program shall—
‘‘(i) be established as a pilot project for
each of the 1995 and 1996 crop years; and
‘‘(ii) be carried out in 30 counties that
are determined by the Corporation to be
adequate to provide a comprehensive eval-
uation of the feasibility, effectiveness, and
demand among new producers for the plan.
‘‘(C) DEFINITION OF NEW PRODUCER.—As
used in this paragraph, the term ‘new producer’
means a person that has not been actively en-
gaged in farming for a share of the production
of the insured crop for more than 2 crop years,
as determined by the Secretary.’’.
SEC. 1108. CLAIMS FOR LOSSES.
Subsection (i) of section 508 (7 U.S.C. 1508) (as redes-
ignated by section 1101(3)) is amended to read as follows:
‘‘(i) CLAIMS FOR LOSSES.—
‘‘(1) IN GENERAL.—The Corporation may pro-
vide for adjustment and payment of claims for losses
as provided under subsection (a) under rules pre-
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scribed by the Corporation. The rules prescribed by
the Corporation shall establish standards to ensure
that all claims for losses are adjusted, to the extent
practicable, in a uniform and timely manner.
‘‘(2) DENIAL OF CLAIMS.—
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), if a claim for indemnity is denied by
the Corporation or by the private insurance pro-
vider, an action on the claim shall only be
brought against the Corporation or Secretary or
the insurance provider in the United States Dis-
trict Court for the district in which the insured
farm is located.
‘‘(B) STATUTE OF LIMITATIONS.—A suit on
the claim may be brought not later than 1 year
after the date on which written notice of denial
of the claim is provided to the claimant.
‘‘(3) INDEMNIFICATION.—The Corporation shall
provide insurance companies, agents, and brokers
with indemnification, including costs and reasonable
attorney fees, from the Corporation for errors or omis-
sions on the part of the Corporation.’’.
SEC. 1109. REINSURANCE.
Section 508 (7 U.S.C. 1508) is amended—
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(1) by striking subsection (j) (as redesignated by
section 1101(3)) and inserting the following new sub-
section:
‘‘(j) REINSURANCE.—Notwithstanding any other pro-
vision of this title, the Corporation shall, to the maximum
extent practicable, provide reinsurance, on such terms and
conditions as the Corporation determines to be consistent
with subsections (b) and (c) and sound reinsurance prin-
ciples, to insurers (as defined by the Corporation) that in-
sure producers of any agricultural commodity under 1 or
more plans acceptable to the Corporation. Each reinsurance
agreement of the Corporation with a reinsured company
shall require the reinsured company to bear a sufficient
share of any potential loss under the agreement so as to
ensure that the reinsured company will sell and service poli-
cies of insurance in a sound and prudent manner, taking
into consideration the availability of private reinsurance.’’;
and
(2) in subsection (k) (as so redesignated), by
striking ‘‘provide’’ and inserting ‘‘offer plans of ’’.
SEC. 1110. FUNDING.
Section 516 (7 U.S.C. 1516) is amended to read as
follows:
‘‘SEC. 516. FUNDING.
‘‘(a) AUTHORIZATION OF APPROPRIATIONS.—
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‘‘(1) EXPENSES
OF
CORPORATION.—There are
authorized to be appropriated such sums as are nec-
essary to cover the salaries and expenses of the Cor-
poration and the administrative and operating ex-
penses of the Corporation for the sales commissions of
agents.
‘‘(2) EXPENSES OF PROVIDERS.—There are au-
thorized to be appropriated such sums as are nec-
essary to cover the administrative and operating ex-
penses of an approved insurance provider for the de-
livery of policies with coverage that is greater than
catastrophic risk protection.
‘‘(b) PAYMENT OF EXPENSES.—
‘‘(1) ADMINISTRATIVE
AND
OPERATING
EX-
PENSES.—Beginning with the 1996 crop year, the
Corporation is authorized to pay, from the insurance
fund established under subsection (c), the administra-
tive and operating expenses of an approved insurance
provider, other than expenses covered under subsection
(a)(1).
‘‘(2) OTHER EXPENSES.—The Corporation is au-
thorized to pay from the insurance fund established
under subsection (c)—
‘‘(A) all other expenses of the Corporation
(other than expenses covered in subsection
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(a)(1)), including all premium subsidies and in-
demnities;
‘‘(B) for the 1995 crop year, all administra-
tive and expense reimbursements due under a re-
insurance agreement with an approved insur-
ance provider; and
‘‘(C) to the extent necessary, expenses in-
curred by the Corporation to carry out research
and development.
‘‘(c) INSURANCE FUND.—
‘‘(1) IN GENERAL.—There is established an in-
surance fund for the deposit of premium income, in-
come from reinsurance operations, and amounts made
available under subsection (a)(2).
‘‘(2) SOURCE OF FUNDING.—There are appro-
priated, without fiscal year limitation, such sums as
may be necessary to carry out subsection (b) through
the insurance fund.’’.
SEC. 1111. ADVISORY COMMITTEE FOR FEDERAL CROP IN-
SURANCE.
The Act is amended by inserting after section 514 (7
U.S.C. 1514) the following new section:
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‘‘SEC. 515. ADVISORY COMMITTEE FOR FEDERAL CROP IN-
SURANCE.
‘‘(a) ESTABLISHMENT.—The Secretary may establish
within the Department a committee to be known as the ‘Ad-
visory Committee for Federal Crop Insurance’ (referred to
in this section as the ‘Advisory Committee’), which shall
remain in existence until September 30, 1998.
‘‘(b) MEMBERSHIP.—The Advisory Committee shall be
composed of—
‘‘(1) the Manager of the Corporation;
‘‘(2) the Secretary or a designee; and
‘‘(3) not fewer than 10 representatives of organi-
zations or agencies involved with the Federal crop in-
surance program, which may include insurance com-
panies, insurance agents, farm producer organiza-
tions, experts on agronomic practices, and banking
and lending institutions.
‘‘(c) ADMINISTRATIVE PROVISIONS.—
‘‘(1) TERMS.—Members of the Advisory Commit-
tee shall be appointed by the Secretary for a term of
not more than 2 years from nominations made by the
participating organizations and agencies referred to
in subsection (b). The terms of the members shall be
staggered.
‘‘(2) CHAIRPERSON.—The Advisory Committee
shall be chaired by the Manager of the Corporation.
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‘‘(3) MEETINGS.—The Advisory Committee shall
meet at least annually. The meetings of the Advisory
Committee shall be publicly announced in advance
and shall be open to the public. Appropriate records
of the activities of the Advisory Committee shall be
kept and made available to the public on request.
‘‘(d) PRIMARY RESPONSIBILITY.—The primary re-
sponsibility of the Advisory Committee shall be to advise
the Secretary on the implementation of this title and on
other issues related to crop insurance (as determined by the
Manager of the Corporation).
‘‘(e) REPORTS.—Not later than June 30 of each year,
the Advisory Committee shall prepare, and submit to the
Secretary, a report specifying the conclusions of the Advi-
sory Committee on—
‘‘(1) the progress toward implementation of this
title;
‘‘(2) the actuarial soundness of the Federal crop
insurance program; and
‘‘(3) the rate of participation in the catastrophic
and the additional coverage programs under this
title.’’.
SEC. 1112. MANAGEMENT OF CORPORATION.
(a) IN GENERAL.—The second sentence of section
505(a) (7 U.S.C. 1505(a)) is amended—
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(1) by striking ‘‘program, the Under Secretary’’
and inserting ‘‘program, 1 additional Under Sec-
retary’’; and
(2) by striking ‘‘responsible for the farm credit
programs of the Department of Agriculture’’ and in-
serting ‘‘, as designated by the Secretary of Agri-
culture (referred to in this title as the ‘Secretary’)’’.
(b) GENERAL POWERS.—Section 506 (7 U.S.C. 1506)
is amended—
(1) by redesignating subsections (j) through (n)
as subsections (k) through (o), respectively;
(2) by inserting after subsection (i) the following
new subsection:
‘‘(j) SETTLING CLAIMS.—The Corporation shall have
the authority to make final and conclusive settlement and
adjustment of any claim by or against the Corporation or
a fiscal officer of the Corporation.’’;
(3) in subsection (l) (as so redesignated)—
(A) in the first sentence, by inserting ‘‘, and
issue regulations,’’ after ‘‘agreements’’; and
(B) in the second sentence, by striking ‘‘con-
tracts or agreements’’ each place it appears and
inserting ‘‘contracts, agreements, or regulations’’;
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(4) in subsection (n)(1) (as so redesignated), by
striking subparagraph (B) and inserting the following
new subparagraph:
‘‘(B) disqualify the person from purchasing
catastrophic 
risk 
protection 
or 
receiving
noninsured assistance for a period of not to ex-
ceed 2 years, or from receiving any other benefit
under this title for a period of not to exceed 10
years.’’;
(5) in subsection (o) (as so redesignated)—
(A) 
by 
redesignating 
paragraphs 
(1)
through (4) as subparagraphs (A) through (D)
and aligning the margins of each subparagraph
with the margins of subparagraph (A) of sub-
section (n)(1) (as redesignated by paragraph
(1));
(B) by striking ‘‘(o) ACTUARIAL SOUND-
NESS.—The Corporation’’ and inserting the fol-
lowing:
‘‘(o) ACTUARIAL SOUNDNESS.—
‘‘(1) PROJECTED LOSS RATIO AS OF OCTOBER 1,
1995.—The Corporation’’;
(C) in subparagraph (A) (as redesignated
by subparagraph (A)), by striking ‘‘from obtain-
ing adequate Federal crop insurance, as deter-
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mined by the Corporation’’ and inserting ‘‘(as
defined by the Secretary) from obtaining Federal
crop insurance’’;
(D) in subparagraph (C) (as so redesig-
nated)—
(i) by inserting ‘‘, agents, and loss ad-
justers’’ after ‘‘participating producers’’;
and
(ii) by inserting ‘‘, agents, and loss ad-
justers’’ after ‘‘identify insured producers’’;
and
(E) by adding at the end the following new
paragraphs:
‘‘(2) PROJECTED LOSS RATIO AS OF OCTOBER 1,
1998.—The Corporation shall take such actions, in-
cluding the establishment of adequate premiums, as
are necessary to improve the actuarial soundness of
Federal multiperil crop insurance made available
under this title to achieve, on and after October 1,
1998, an overall projected loss ratio of not greater
than 1.0.
‘‘(3) NONSTANDARD CLASSIFICATION SYSTEM.—
To the extent that the Corporation uses the non-
standard classification system, the Corporation shall
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apply the system to all insured producers in a fair
and consistent manner.’’; and
(6) by adding at the end the following new sub-
sections:
‘‘(p) LOSS RATIO DEFINED.—As used in this Act, the
term ‘loss ratio’ means the ratio of all sums paid by the
Corporation as indemnities under any eligible crop insur-
ance policy to that portion of the premium designated for
anticipated losses and a reasonable reserve, other than that
portion of the premium designated for operating and ad-
ministrative expenses.
‘‘(q) REGULATIONS.—The Secretary and the Corpora-
tion are each authorized to issue such regulations as are
necessary to carry out this title.’’.
(c) PERSONNEL.—Section 507 (7 U.S.C. 1507) is
amended—
(1) in subsection (a), by striking ‘‘, and county
crop insurance committeemen’’;
(2) in subsection (c), by striking ‘‘, in which case
the agent or broker’’ and all that follows through ‘‘the
agent or broker has caused the error or omission’’;
and
(3) in subsection (d), by striking ‘‘of this Act,’’
and all that follows through ‘‘agency’’.
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(d) INFORMATION
COLLECTION
ON
CROP
INSUR-
ANCE.—Subsection (n) of section 508 (7 U.S.C. 1508) (as
redesignated by section 1101(3)) is amended to read as fol-
lows:
‘‘(n) INFORMATION COLLECTION
ON CROP INSUR-
ANCE.—The Secretary shall make available to producers
through local offices of the Department—
‘‘(1) current and complete information on all as-
pects of Federal crop insurance; and
‘‘(2) a listing of insurance agents.’’.
(e) CROP INSURANCE YIELD COVERAGE.—Section
508A (7 U.S.C. 1508a) is repealed.
(f) PREEMPTION.—Section 511 (7 U.S.C. 1511) is
amended by inserting after ‘‘The Corporation, including’’
the following: ‘‘the contracts of insurance of the Corporation
and premiums on the contracts, whether insured directly
or reinsured by the Corporation,’’.
(g) FALSE STATEMENTS.—Section 1014 of title 18,
United States Code, is amended by inserting ‘‘or a company
the Corporation reinsures’’ after ‘‘Federal Crop Insurance
Corporation’’.
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Subtitle B—Noninsured Assistance
Program
SEC. 1201. NONINSURED ASSISTANCE PROGRAM.
The Act (7 U.S.C. 1501 et seq.) is amended by adding
at the end the following new section:
‘‘SEC. 521. NONINSURED ASSISTANCE PROGRAM.
‘‘(a) ELIGIBILITY.—
‘‘(1) IN GENERAL.—The Corporation shall estab-
lish a noninsured assistance program to provide cov-
erage equivalent to the catastrophic risk protection in-
surance described in section 508(b) for crops for
which catastrophic risk protection insurance is not
available. Crops covered shall include all commercial
crops and commodities for which catastrophic risk
protection coverage is not available and that are pro-
duced for food, fiber, or an industrial crop on a com-
mercial basis but shall not include livestock.
Noninsured assistance shall not cover losses due to—
‘‘(A) the neglect or malfeasance of the pro-
ducer;
‘‘(B) the failure of the producer to reseed to
the same crop in such areas and under such cir-
cumstances as it is customary to so reseed; or
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‘‘(C) the failure of the producer to follow
good farming practices (as determined by the
Secretary).
‘‘(2) APPLICATIONS.—To be eligible for assist-
ance under this section, a producer shall make a
timely application, as required by the Corporation,
for noninsured assistance at the local office of the De-
partment.
‘‘(3) RECORDS.—A producer shall annually pro-
vide records, as required by the Corporation, of pre-
vious crop acreage and yields, or the producer shall
accept a yield under subsection (c)(2)(B) determined
by the Corporation.
‘‘(4) ACREAGE REPORTS.—A producer shall pro-
vide reports on acreage planted or prevented from
being planted, as required by the Corporation, by the
designated acreage reporting date for the crop and lo-
cation as established by the Corporation.
‘‘(5) AREA YIELD LOSSES.—
‘‘(A) AREA AVERAGE YIELD.—A producer of
a noninsurable crop shall not be eligible for
noninsured assistance unless the area (as deter-
mined by the Corporation) average yield, or an
equivalent measure if yield data are not avail-
able, for the crop is less than 65 percent of the
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expected area yield established by the Corpora-
tion.
‘‘(B) PREVENTED
PLANTING
PAYMENTS.—
Subject to subparagraph (A), the Corporation
shall make a prevented planting noninsured as-
sistance payment to a producer if the producer
is prevented from planting more than 35 percent
of the acreage intended for the crop because of
drought, flood, or other natural disaster (as de-
termined by the Secretary).
‘‘(C) REDUCED YIELD PAYMENTS.—Subject
to subparagraph (A), if, because of drought,
flood, or other natural disaster (as determined by
the Secretary), the total quantity of the crop that
a producer is able to harvest on any farm is less
than 50 percent of the expected area yield for the
crop (as determined by the Corporation) factored
for the interest of the producer for the crop, the
Corporation 
shall 
make 
a 
reduced 
yield
noninsured assistance payment.
‘‘(b) PAYMENT.—The Corporation shall make available
to a producer eligible for noninsured assistance under this
section a payment computed by multiplying—
‘‘(1) the quantity that is less than 50 percent of
the established yield for the crop; by
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‘‘(2) 60 percent of the average market price for
the crop (or any comparable coverage determined by
the Corporation); by
‘‘(3) a payment rate for the type of crop (as de-
termined by the Corporation) that—
‘‘(A) in the case of a crop that is produced
with a significant and variable harvesting ex-
pense, a payment rate that reflects the decreasing
cost incurred in the production cycle for the crop
that is—
‘‘(i) harvested;
‘‘(ii) planted but not harvested; and
‘‘(iii) prevented from being planted be-
cause of drought, flood, or other natural dis-
aster (as determined by the Secretary); and
‘‘(B) in the case of a crop that is not pro-
duced with a significant and variable harvesting
expense, a payment rate determined by the Cor-
poration.
‘‘(c) YIELDS.—
‘‘(1) IN GENERAL.—The Corporation shall estab-
lish noninsured assistance program farm yields for
crops for the purposes of this section.
‘‘(2) ACTUAL PRODUCTION HISTORY.—
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‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), the yield for a crop shall be based on
the actual production history for the crop, if the
crop was produced on the farm without penalty
during each of the 4 crop years immediately pre-
ceding the crop year for which actual production
history is being established, building up to a
production data base of the 10 crop years imme-
diately preceding the crop year for which pro-
duction history is being established.
‘‘(B) ASSIGNED YIELD.—
‘‘(i) IN
GENERAL.—If the producer
does not provide sufficient evidence of the
yield (as required by the Corporation) of a
commodity under subparagraph (A), the
producer shall be assigned a yield that is
not less than 65 percent of the transitional
yield of the producer (adjusted to reflect ac-
tual production reflected in the records ac-
ceptable to the Corporation for continuous
years), as specified in regulations issued by
the Corporation based on production history
requirements.
‘‘(ii) LIMITATION.—A producer who re-
ceives an assigned yield for the current year
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of a natural disaster because required pro-
duction records were not submitted to the
local office of the Department shall not be
eligible for an assigned yield for the year of
the next natural disaster unless the required
production records of the previous 1 or more
years (as applicable) are provided to the
local office.
‘‘(C) YIELD VARIATIONS DUE TO DIFFERENT
FARMING
PRACTICES.—The Corporation shall
make noninsured payments that accurately re-
flect significant yield variations due to different
farming practices, such as between irrigated and
nonirrigated acreage.
‘‘(d) INCREASED CROP PLANTINGS.—
‘‘(1) IN GENERAL.—If the acreage of a crop in
a county has increased by more than 100 percent
since the 1987 crop year, to become eligible for a
noninsured assistance payment, a producer must pro-
vide detailed documentation of production costs, acres
planted, and yield, as required by the Corporation.
Except as provided in paragraph (2), a producer who
produces a crop on a farm located in a county de-
scribed in the preceding sentence may not obtain an
assigned yield.
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‘‘(2) EXCEPTION.—A crop or a producer shall
not be subject to this subsection if—
‘‘(A) the planted acreage of the producer for
the crop has been inspected by a third party ac-
ceptable to the Secretary; or
‘‘(B)(i) the County Executive Director, the
District Director, and the State Executive Direc-
tor recommend an exemption from the require-
ment to the Deputy Administrator for State and
County Operations of the Agricultural Stabiliza-
tion and Conservation Service; and
‘‘(ii) the Deputy Administrator approves
the recommendation.
‘‘(e) CONTRACT PAYMENTS.—A producer who has re-
ceived a guaranteed payment for production, as opposed to
delivery, of a crop pursuant to a contract shall have the
production of the producer adjusted upward by the amount
of the production equal to the amount of the contract pay-
ment received.
‘‘(f) PAYMENT OF LOSSES.—Payments for noninsured
assistance losses under this section shall be made from the
insurance fund established under section 516(b). The losses
shall not be included in calculating the premiums charged
to producers for insurance.’’.
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SEC. 1202. PAYMENT AND INCOME LIMITATIONS.
Section 521 (as added by section 1201) is further
amended by adding at the end the following new subsection:
‘‘(g) PAYMENT AND INCOME LIMITATIONS.—
‘‘(1) DEFINITIONS.—As used in this subsection:
‘‘(A) PERSON.—The term ‘person’ has the
meaning provided the term in regulations issued
by the Secretary. The regulations shall conform,
to the extent practicable, to the regulations defin-
ing the term ‘person’ issued under section 1001
of the Food Security Act of 1985 (7 U.S.C.
1308).
‘‘(B) QUALIFYING GROSS REVENUES.—The
term ‘qualifying gross revenues’ means—
‘‘(i) if a majority of the gross revenue
of the person is received from farming,
ranching, and forestry operations, the gross
revenue from the farming, ranching, and
forestry operations of the person; and
‘‘(ii) if less than a majority of the
gross revenue of the person is received from
farming, ranching, and forestry operations,
the gross revenue of the person from all
sources.
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‘‘(2) PAYMENT LIMITATION.—The total amount
of payments that a person shall be entitled to receive
annually under this title may not exceed $100,000.
‘‘(3) NO DOUBLE BENEFITS.—No person may re-
ceive a noninsured assistance payment under this
title and emergency livestock feed assistance under
section 606 of the Agricultural Act of 1949 (7 U.S.C.
1471d) for the same livestock feed or forage loss.
‘‘(4) INCOME
LIMITATION.—A person who has
qualifying gross revenues in excess of the amount
specified in section 2266(a) of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 1421
note) (as in effect on November 28, 1990) during the
taxable year (as determined by the Secretary) shall
not be eligible to receive any noninsured assistance
payment under this section.
‘‘(5) REGULATIONS.—The Secretary shall issue
regulations prescribing such rules as the Secretary de-
termines necessary to ensure a fair and equitable ap-
plication of section 1001 of the Food Security Act of
1985 (7 U.S.C. 1308), the general payment limitation
regulations of the Secretary, and the limitations es-
tablished under this subsection.’’.
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Subtitle C—Miscellaneous
SEC. 1301. INELIGIBILITY FOR CATASTROPHIC RISK AND
NONINSURED ASSISTANCE PAYMENTS.
The Act (7 U.S.C. 1501 et seq.) (as amended by section
1201) is further amended by adding at the end the following
new section:
‘‘SEC. 522. INELIGIBILITY FOR CATASTROPHIC RISK AND
NONINSURED ASSISTANCE PAYMENTS.
‘‘If the Secretary determines that a person has know-
ingly adopted a material scheme or device to obtain cata-
strophic risk, additional coverage, or noninsured assistance
benefits under this Act to which the person is not entitled,
has evaded this Act, or has acted with the purposes of evad-
ing this Act, the person shall be ineligible to receive all bene-
fits applicable to the crop year for which the scheme or de-
vice was adopted. The authority provided by this section
shall be in addition to, and shall not supplant, the author-
ity provided by section 506(m).’’.
SEC. 1302. PREVENTED PLANTING.
(a) IN GENERAL.—Effective for the 1994 crop year,
a producer described in subsection (b) shall receive com-
pensation under the prevented planting coverage policy pro-
vision described in subsection (b)(1) by—
(1) obtaining from the Secretary of Agriculture
the applicable amount that is payable under the con-
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servation use program described in subsection (b)(4);
and
(2) obtaining from the Federal Crop Insurance
Corporation the amount that is equal to the difference
between—
(A) the amount that is payable under the
conservation use program; and
(B) the amount that is payable under the
prevented planting coverage policy.
(b) ELIGIBLE
PRODUCERS.—Subsection (a) shall
apply to a producer who—
(1) purchased a prevented planting policy for the
1994 crop year from the Federal Crop Insurance Cor-
poration prior to the spring sales closing date for the
1994 crop year;
(2) is unable to plant a crop due to major, wide-
spread flooding in the Midwest, or excessive ground
moisture, that occurred prior to the spring sales clos-
ing date for the 1994 crop year;
(3) had a reasonable expectation of planting a
crop on the prevented planting acreage for the 1994
crop year; and
(4) participates in a conservation use program
established for the 1994 crop of wheat, feed grains,
upland cotton, or rice established under section
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107B(c)(1)(E), 
105B(c)(1)(E), 
103B(c)(1)(D), 
or
101B(c)(1)(D), respectively, of the Agricultural Act of
1949 (7 U.S.C. 1445b–3a(c)(1)(E), 1444f(c)(1)(E),
1444–2(c)(1)(D), or 1441–2(c)(1)(D)).
(c) OILSEED PREVENTED PLANTING PAYMENTS.—
(1) IN GENERAL.—Effective for the 1994 crop
year, a producer of a crop of oilseeds (as defined in
section 205(a) of the Agricultural Act of 1949 (7
U.S.C. 1446f(a)) shall receive a prevented planting
payment for the crop if the requirements of para-
graphs (1), (2), and (3) of subsection (b) are satisfied.
(2) SOURCE OF PAYMENT.—The total amount of
payments required under this subsection shall be
made by the Federal Crop Insurance Corporation.
(d) PAYMENT.—A payment under this section may not
be made before October 1, 1994.
SEC. 1303. CONFORMING AMENDMENTS.
(a) PRICE SUPPORT PROGRAMS.—
(1) IN GENERAL.—Title IV of the Agricultural
Act of 1949 (7 U.S.C. 1421 et seq.) is amended by
adding at the end the following new section:
‘‘SEC. 427. CROP INSURANCE REQUIREMENT.
‘‘As a condition of receiving any benefit (including
payments) under title I or II for each of the 1995 and subse-
quent crops of tobacco, rice, extra long staple cotton, upland
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cotton, feed grains, wheat, peanuts, oilseeds, and sugar and
for each of the 1995 and subsequent calendar years with
respect to milk, a producer must obtain at least catastrophic
risk protection insurance coverage under section 508 of the
Federal Crop Insurance Act (7 U.S.C. 1508) for the crop
and crop year for which the benefit is sought, if the coverage
is offered by the Corporation.’’.
(2) RICE.—Section 101B(c) of such Act (7
U.S.C. 1441–2(c)) is amended—
(A) in paragraph (1), by striking subpara-
graph (F); and
(B) by striking paragraph (2) and inserting
the following new paragraph:
‘‘(2) CROP INSURANCE REQUIREMENT.—A pro-
ducer shall obtain catastrophic risk protection insur-
ance coverage in accordance with section 427.’’.
(3) UPLAND COTTON.—Section 103B(c) of such
Act (7 U.S.C. 1444–2(c)) is amended—
(A) in paragraph (1), by striking subpara-
graph (F); and
(B) by striking paragraph (2) and inserting
the following new paragraph:
‘‘(2) CROP INSURANCE REQUIREMENT.—A pro-
ducer shall obtain catastrophic risk protection insur-
ance coverage in accordance with section 427.’’.
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(4) FEED GRAINS.—Section 105B(c) of such Act
(7 U.S.C. 1444f(c)) is amended—
(A) in paragraph (1), by striking subpara-
graph (G); and
(B) by striking paragraph (2) and inserting
the following new paragraph:
‘‘(2) CROP INSURANCE REQUIREMENT.—A pro-
ducer shall obtain catastrophic risk protection insur-
ance coverage in accordance with section 427.’’.
(5) WHEAT.—Section 107B(c) of such Act (7
U.S.C. 1445b–3a(c)) is amended—
(A) in paragraph (1), by striking subpara-
graph (G); and
(B) by striking paragraph (2) and inserting
the following new paragraph:
‘‘(2) CROP INSURANCE REQUIREMENT.—A pro-
ducer shall obtain catastrophic risk protection insur-
ance coverage in accordance with section 427.’’.
(6) DISASTER PAYMENTS.—Section 208 of such
Act (7 U.S.C. 1446i) is repealed.
(b) FARMERS HOME ADMINISTRATION PROGRAMS.—
The Consolidated Farm and Rural Development Act (7
U.S.C. 1921 et seq.) is amended by adding at the end the
following new section:
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‘‘SEC. 371. CROP INSURANCE REQUIREMENT.
‘‘(a) IN GENERAL.—As a condition of obtaining any
benefit (including a direct loan, loan guarantee, or pay-
ment) described in subsection (b), a borrower must obtain
at least catastrophic risk protection insurance coverage
under section 508 of the Federal Crop Insurance Act (7
U.S.C. 1508) for the crop and crop year for which the bene-
fit is sought, if the coverage is offered by the Corporation.
‘‘(b) APPLICABLE BENEFITS.—Subsection (a) shall
apply to—
‘‘(1) a farm ownership loan (FO) under section
303;
‘‘(2) an operating loan (OL) under section 312;
and
‘‘(3) an emergency loan (EM) under section
321.’’.
(c) DISASTER ASSISTANCE.—Subtitle B of title XXII
of the Food, Agriculture, Conservation, and Trade Act of
1990 (7 U.S.C. 1421 note) is amended by striking chapter
3.
(d) EMERGENCY APPROPRIATIONS.—
(1) IN GENERAL.—Section 251(b)(2)(D)(i) of the
Balanced Budget and Emergency Deficit Control Act
of 1985 (2 U.S.C. 901(b)(2)(D)(i)) is amended by
adding at the end the following new sentence: ‘‘This
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(3) EMERGENCY
REQUIREMENT.—The amounts
made available under paragraphs (1) and (2) are des-
ignated by Congress as an emergency requirement
pursuant to section 252(e) of the Balanced Budget
and Emergency Deficit Control Act of 1985 (2 U.S.C.
902(e)). The amounts shall be available only to the ex-
tent that an official budget request for specific dollar
amounts, that includes designation of the entire
amount of the request as an emergency requirement
pursuant to such Act, is transmitted by the President
to Congress.
(d) DEFINITION OF NATURAL DISASTERS.—As used in
this section, the term ‘‘natural disasters’’ includes weather-
related insect damage to strawberries.
SEC. 1305. USE OF COMMODITY CREDIT CORPORATION
FUNDS TO COVER CERTAIN COSTS FOR FALL-
PLANTED 1995 CROPS.
(a) DEFINITION OF FALL-PLANTED 1995 CROP.—As
used in this section, the term ‘‘fall-planted 1995 crop’’
means a 1995 crop that is insurable under the Federal Crop
Insurance Act (7 U.S.C. 1501 et seq.) with a sales closing
date that is prior to January 1, 1995.
(b) USE OF FUNDS TO COVER COSTS.—Subject to the
other provisions of this section, the Federal Crop Insurance
Corporation may use funds of the Commodity Credit Cor-
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poration to cover operating and administrative costs of the
Corporation referred to in section 516(a)(1) of the Federal
Crop Insurance Act (7 U.S.C. 1516(a)(1)) associated with
insurance policies issued for a fall-planted 1995 crop under
such Act (7 U.S.C. 1501 et seq.).
(c) LIMITATION ON AMOUNT OF FUNDS.—The amount
of funds of the Commodity Credit Corporation that may
be used under subsection (b) may not exceed $40,000,000.
(d) COMBINED LIMITATION ON AMOUNT OF FUNDS
AND EMERGENCY CROP LOSS ASSISTANCE.—The amount
of funds of the Commodity Credit Corporation used under
subsection (b) and the amount of funds used for fiscal year
1995 to provide emergency crop loss assistance for 1995
crops shall not exceed $500,000,000.
SEC. 1306. POULTRY LABELING, PUBLIC HEARINGS.
It is the sense of the Senate that the United States De-
partment of Agriculture should carry out its plans to hold
public hearings during the month of September 1994, for
the purpose of receiving public input on issues related to
the conditions under which poultry sold in the United
States may be labeled ‘‘fresh’’ and to finalize and publish
a decision on this issue as expeditiously as possible there-
after. It is the further sense of the Senate that no person
serving on the expert advisory committee established to ad-
vise the Secretary of Agriculture on this issue should stand
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to profit, or represent any interest that would stand to prof-
it, from the Department’s decision on the issue.
SEC. 1307. AGRICULTURE EMPLOYEES FIRST AMENDMENT
RIGHTS.
Notwithstanding any other provision of law, no em-
ployee of the United States Department of Agriculture shall
be peremptorily removed without public hearings from his
or her position because of remarks made during personal
time in opposition to Departmental policies, or proposed
policies regarding homosexuals: Provided, That any such
individual so removed prior to date of enactment shall be
reinstated to his or her previous position.
SEC. 1308. ADJUSTED COST OF THRIFTY FOOD PLAN.
Section 3(o)(11) of the Food Stamp Act of 1977 (7
U.S.C. 2012(o)(11)) is amended by inserting before the pe-
riod at the end the following: ‘‘, except that the Secretary
may not reduce the cost of such diet below the allotment
in effect for fiscal year 1994.’’.
SEC. 1309. EFFECTIVE DATES.
(a) IN GENERAL.—Except as otherwise provided in
this title, this title and the amendments made by this title
shall become effective beginning with—
(1) if this title is enacted before October 1, 1994,
the 1995 crop year for the applicable agricultural
commodity; or
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(2) if this title is enacted on or after October 1,
1994, the 1996 crop year for the applicable agricul-
tural commodity.
(b) EXCEPTIONS.—
(1) IN
GENERAL.—Sections 1100, 1101(1),
1112(e), 1112(f), and 1302, the amendments made by
such sections, and this section shall become effective
on the date of enactment of this Act.
(2) EMERGENCY APPROPRIATIONS.—The amend-
ments made by section 1303(d) shall become effec-
tive—
(A) if this title is enacted before October 1,
1994, on the date of enactment of this title; or
(B) if this title is enacted on or after Octo-
ber 1, 1994, on June 1, 1995.
SEC. 1310. TERMINATION OF AUTHORITY.
The authority provided by this title and the amend-
ments made by this title shall terminate on September 30,
2000.
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TITLE II—DEPARTMENT OF AG-
RICULTURE 
REORGANIZA-
TION
Subtitle A—Short Title; Purpose;
Definitions
SEC. 2101. SHORT TITLE.
This title may be cited as the ‘‘Department of Agri-
culture Reorganization Act of 1994’’.
SEC. 2102. PURPOSE.
The purpose of this title is to provide the Secretary
of Agriculture with the necessary authority to streamline
and reorganize the Department of Agriculture to achieve
greater efficiency, effectiveness, and economies in the orga-
nization and management of the programs and activities
carried out at the Department.
SEC. 2103. DEFINITIONS.
As used in this title (unless the context clearly requires
otherwise):
(1) ADMINISTRATIVE UNIT.—The term ‘‘adminis-
trative unit’’ includes—
(A) any office, administration, agency, in-
stitute, unit, or organizational entity, or compo-
nent thereof, except that the term does not in-
clude a corporation; and
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(B) any county, State, or area committee,
as established by the Secretary.
(2) DEPARTMENT.—The term ‘‘Department’’
means the United States Department of Agriculture.
(3) FUNCTION.—The term ‘‘function’’ means an
administrative, financial, or regulatory duty of an
administrative unit or employee of the Department,
including a transfer of funds made available to carry
out a function of an administrative unit.
(4) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Agriculture.
Subtitle B—General Authorities of
the Secretary
SEC. 2201. DELEGATION OF FUNCTIONS TO THE SEC-
RETARY.
(a) DELEGATION OF FUNCTIONS.—Except as otherwise
provided in this title and notwithstanding any other provi-
sion of law, all functions and all activities, officers, employ-
ees, and administrative units of the Department, not vested
in the Secretary on the date of enactment of this Act, are
delegated to the Secretary.
(b) EXCEPTIONS TO THE DELEGATION.—This section
shall not apply to the following functions and administra-
tive units of the Department:
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(1) The functions vested in administrative law
judges by subchapter II of chapter 5 of title 5, United
States Code.
(2) The functions vested in the Inspector General
by the Inspector General Act of 1978 (5 U.S.C. App.
3).
(3) The functions vested in the Chief Financial
Officer by chapter 9 of subtitle I of title 31, United
States Code.
(4) Corporations and the boards of directors and
officers of the corporations.
(5) The functions vested in the Alternative Agri-
cultural Research and Commercialization Board by
the Alternative Agricultural Research and Commer-
cialization Act of 1990 (7 U.S.C. 5901 et seq.).
SEC. 2202. REORGANIZATION.
(a) GENERAL AUTHORITY OF THE SECRETARY.—The
Secretary may transfer any function or administrative unit
of the Department, including any function or administra-
tive unit delegated to the Secretary by this title, and any
officer or employee of the Department, as the Secretary con-
siders appropriate. The authority established in the preced-
ing sentence includes the authority to establish, consolidate,
alter, or discontinue any administrative unit of the Depart-
ment.
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(b) AUTHORITY TO TRANSFER RECORDS, PROPERTY,
AND FUNDS.—
(1) IN GENERAL.—Subject to section 1531 of title
31, United States Code, the Secretary may transfer
any of the records, property, and unexpended balances
(available or to be made available for use in connec-
tion with any affected function or administrative
unit) of appropriations, allocations, and other funds
of the Department, as the Secretary considers nec-
essary to carry out this title, except as otherwise pro-
vided in this section.
(2) USE.—Absent prior approval by law, any
unexpended balances transferred pursuant to para-
graph (1) shall be used only for the purposes for
which the funds were originally made available.
(3) ADDITIONAL
AUTHORITY.—The Secretary
may make such additional incidental dispositions of
personnel, assets, liabilities, grants, contracts, prop-
erty, records, and unexpended balances of appropria-
tions, authorizations, allocations, and other funds
held, used, arising from, available to, or to be made
available in connection with the functions or admin-
istrative units, as the Secretary considers necessary to
carry out this title.
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(c) PURPOSE
OF
THE AUTHORITY.—The Secretary
shall carry out subsections (a) and (b) with the goals of
simplifying and maximizing the efficiency of the national,
State, regional, and local levels of the Department, and of
improving the accessibility of farm and other programs at
all levels. To the extent practicable, the Secretary shall
adapt the administration of the programs to State, re-
gional, and local conditions.
(d) EXHAUSTION
OF ADMINISTRATIVE APPEALS.—
Notwithstanding any other provision of law, a person shall
exhaust all administrative appeal procedures established by
the Secretary before the person may bring an action in a
court of competent jurisdiction against—
(1) the Secretary;
(2) the Department;
(3) an administrative unit of the Department; or
(4) an employee or agent of an administrative
unit of the Department.
(e) CONFORMING AMENDMENTS.—Section 9 of the
Commodity Credit Corporation Charter Act (15 U.S.C.
714g) is amended—
(1) in subsection (a), by striking ‘‘(a)’’; and
(2) by striking subsection (b).
SEC. 2203. PERSONNEL REDUCTIONS.
(a) DEFINITIONS.—As used in this section:
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(1) FIELD STRUCTURE.—The term ‘‘field struc-
ture’’ means the offices, functions, and employee posi-
tions of all administrative units of the Department,
other than the headquarters offices. The term includes
the physical and geographic locations of the units.
The term shall not include State, county, or area
committees established under section 8(b) of the Soil
Conservation and Domestic Allotment Act (16 U.S.C.
590h(b)).
(2) HEADQUARTERS OFFICES.—The term ‘‘head-
quarters offices’’ means the offices, functions, and em-
ployee positions of all administrative units of the De-
partment located or performed in Washington, Dis-
trict of Columbia, or elsewhere, as determined by the
Secretary.
(b) EMPLOYEE REDUCTIONS.—Subject to subsection
(c), the Secretary shall achieve employee reductions of at
least 7,500 staff years within the Department by September
30, 1999.
(c) DISTRIBUTION.—The percentage of employee reduc-
tions in the headquarters offices under subsection (b) shall
be substantially higher than the percentage of employee re-
ductions in the field structure, as determined by the Sec-
retary.
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(d) SCHEDULE.—The personnel reductions under sub-
sections (b) and (c) should be accomplished concurrently in
a manner determined by the Secretary.
SEC. 2204. CONSOLIDATION OF HEADQUARTERS OFFICES.
The Secretary shall develop and carry out a plan to
consolidate offices of administrative units of the Depart-
ment located in Washington, District of Columbia, subject
to the availability of appropriations.
SEC. 2205. REPORTS BY THE SECRETARY.
(a) IN GENERAL.—Subject to subsection (b), notwith-
standing any other provision of law, the Secretary may,
but shall not be required to, prepare and submit any report
to Congress or any committee of Congress.
(b) LIMITATION.—For each fiscal year, the Secretary
may not prepare and submit more than 30 reports referred
to in subsection (a).
(c) SELECTION OF REPORTS.—In consultation with
the Committee on Agriculture of the House of Representa-
tives and the Committee on Agriculture, Nutrition, and
Forestry of the Senate, the Secretary shall determine which
reports shall be prepared and submitted in accordance with
subsection (b).
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Subtitle C—National Appeals
Division
SEC. 2301. DEFINITIONS.
As used in this subtitle:
(1) ADVERSE DECISION.—The term ‘‘adverse de-
cision’’ means an administrative decision made by a
decisionmaker that is adverse to a participant, in-
cluding a denial of equitable relief, except that the
term shall not include a decision over which the
Board of Contract Appeals has jurisdiction. The term
shall include the failure of a decisionmaker to issue
a decision or otherwise act on the request or right of
the participant to participate in, or receive pay-
ments, loans, or other benefits under, any of the pro-
grams administered by an agency. Notwithstanding
section 701(a)(2) of title 5, United States Code, a dis-
cretionary decision of the Secretary or the Division
shall be reviewable under section 706(2)(A) of such
title unless the decision is generally applicable to all
program participants and, as a matter of general ap-
plicability, is committed to agency discretion by law
within the meaning of section 701(a)(2) of such title.
(2) AGENCY.—The term ‘‘agency’’ means any
agency of the Department designated by the Secretary
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or a successor agency of the Department, except that
the term shall include—
(A) ASCS;
(B) CCC, with respect to domestic pro-
grams;
(C) FmHA (including rural housing pro-
grams);
(D) FCIC;
(E) RDA (including rural housing pro-
grams);
(F) SCS; or
(G) a State or county committee established
under section 8(b) of the Soil Conservation and
Domestic Allotment Act (16 U.S.C. 590h(b)) or
the Consolidated Farm and Rural Development
Act (7 U.S.C. 1921 et seq.).
(3) APPELLANT.—The term ‘‘appellant’’ means a
participant who appeals an adverse decision in ac-
cordance with this subtitle.
(4) ASCS.—The term ‘‘ASCS’’ means the Agri-
cultural Stabilization and Conservation Service or a
successor agency.
(5) CASE
RECORD.—The term ‘‘case record’’
means all the materials maintained by the Secretary
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that concern the participant, including any materials
related to the adverse decision.
(6) CCC.—The term ‘‘CCC’’ means the Commod-
ity Credit Corporation or a successor agency.
(7) 
DECISIONMAKER.—The 
term 
‘‘decision-
maker’’ means an officer, employee, or committee of
an agency who makes an adverse decision that is ap-
pealed by an appellant.
(8) DIRECTOR.—The term ‘‘Director’’ means the
Director of the Division.
(9) DIVISION.—The term ‘‘Division’’ means the
National Appeals Division established by this subtitle.
(10) EMPLOYEE.—The term ‘‘employee’’ means
an individual employed by an agency, including an
individual who enters into a contract with an agency
to perform services for the agency.
(11) FINAL DETERMINATION.—The term ‘‘final
determination’’ means a determination of an appeal
by the Division that is administratively final, conclu-
sive, and binding.
(12) FCIC.—The term ‘‘FCIC’’ means the Fed-
eral Crop Insurance Corporation or a successor agen-
cy.
(13) FMHA.—The term ‘‘FmHA’’ means the
Farmers Home Administration or a successor agency.
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(14) HEARING OFFICER.—The term ‘‘hearing of-
ficer’’ means an individual employed by the Division
who hears and determines appeals of adverse decisions
by any agency.
(15) HEARING
RECORD.—The term ‘‘hearing
record’’ means the transcript of a hearing, any audio
tape or similar recording of a hearing, any informa-
tion from the case record that a hearing officer con-
siders relevant or that is raised by the appellant or
agency, and all documents and other evidence pre-
sented to a hearing officer.
(16) IMPLEMENT; IMPLEMENTATION.—The terms
‘‘implement’’ and ‘‘implementation’’ refer to those ac-
tions necessary to effectuate fully and promptly a de-
termination of the Division not later than 30 cal-
endar days after the effective date of the determina-
tion.
(17) PARTICIPANT.—The term ‘‘participant’’
means any individual, group of individuals, partner-
ship, corporation, association, cooperative, or other
entity whose application for, or right to participate
in or receive, payments, loans, or other benefits in ac-
cordance with any of the programs administered by
an agency, is affected by an adverse decision made by
a decisionmaker.
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(18) RDA.—The term ‘‘RDA’’ means the Rural
Development Administration or a successor agency.
(19) SCS.—The term ‘‘SCS’’ means the Soil
Conservation Service or a successor agency.
(20) STATE DIRECTOR.—The term ‘‘State direc-
tor’’ means the individual who is primarily respon-
sible for carrying out the program of an agency with-
in a State.
SEC. 2302. NATIONAL APPEALS DIVISION AND DIRECTOR.
(a) ESTABLISHMENT OF DIVISION.—
(1) ESTABLISHMENT.—The Secretary shall estab-
lish and maintain a National Appeals Division with-
in the Office of the Secretary to carry out this sub-
title.
(2) APA APPLICATION.—The provisions of title
5, United States Code, shall apply to all appeals of
the Division, including chapters 5 and 7 of such title.
(3) PROCEDURAL REGULATIONS AND POLICIES.—
The Secretary shall promulgate procedural regula-
tions and policies to govern the conduct of the busi-
ness of the Division. The Secretary shall ensure and
enhance the independence, integrity, and efficiency of
the Division, the Director, hearing officers, and other
employees of the Division.
(b) DIRECTOR.—
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(1) APPOINTMENT.—The Division shall be head-
ed by a Director.
(2) POSITION CLASSIFICATION.—The position of
the Director shall be a Senior Executive Service posi-
tion that shall be filled by a career appointee (as de-
fined in section 3132(a)(4) of title 5, United States
Code), who shall not be subject to removal except for
cause in accordance with law.
(3) QUALIFICATIONS.—The Director shall be a
person who has substantial experience in practicing
administrative law. In considering applicants for the
position of Director, the Secretary shall consider per-
sons employed outside the Government as well as Gov-
ernment employees.
(4) CONFORMING AMENDMENT.—Section 5316 of
title 5, United States Code, is amended by adding at
the end the following:
‘‘Director, National Appeals Division, Depart-
ment of Agriculture.’’.
(c) DIRECTION, CONTROL, AND SUPPORT.—The Direc-
tor shall be free from the direction and control of any person
other than the Secretary. The Division shall not receive ad-
ministrative support (except on a reimbursable basis) from
any agency other than the Office of the Secretary. The Sec-
retary may not delegate to any other officer or employee
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of the Department, other than the Director, the authority
of the Secretary with respect to the Division.
(d) COMMUNICATION WITH SECRETARY AND AGEN-
CIES.—The Director shall inform the Secretary and the ap-
propriate agency of problems regarding the functions of the
agency that are identified as a result of the activities of
the Division under this subtitle. The information provided
by the Director may include proposals to resolve the prob-
lems identified or otherwise to improve the programs of the
agency.
(e) APPEALABLE
DECISIONS.—Subject to section
2304(b)(2), if a decisionmaker determines that a decision
is not appealable and a participant appeals the decision
to the Director, the Director shall determine whether the de-
cision is adverse or of general applicability, and thus ap-
pealable. Except for a legal interpretation that may be re-
versed or modified by the Secretary, the determination of
the Director as to whether a decision is appealable shall
be administratively final, conclusive, and binding.
(f) OTHER POWERS OF THE DIRECTOR.—The Director
may enter into contracts and make other arrangements for
reporting and other services and make such payments as
may be necessary to carry out this subtitle.