H. R. 6124—220 
(aa) by striking ‘‘countersigned food cou-
pons or similar’’; and 
(bb) by striking ‘‘food coupons’’ and 
inserting ‘‘EBT cards’’; and 
(ii) in subparagraph (C)(i)(I), by striking ‘‘coupons’’ 
and inserting ‘‘EBT cards’’; 
(C) in subsection (f), by striking ‘‘section 7(g)(2)’’ and 
inserting ‘‘section 7(f)(2)’’; and 
(D) in subsection (j), by striking ‘‘coupon’’ and inserting 
‘‘benefit’’. 
(13) Section 19(a)(2)(A)(ii) of the Food and Nutrition Act 
of 2008 (7 U.S.C. 2028(a)(2)(A)(ii)) is amended by striking ‘‘sec-
tion 3(o)(4)’’ and inserting ‘‘section 3(u)(4)’’. 
(14) Section 21 of the Food and Nutrition Act of 2008 
(7 U.S.C. 2030) is repealed. 
(15) Section 22 of the Food and Nutrition Act of 2008 
(7 U.S.C. 2031) is amended— 
(A) by striking ‘‘food coupons’’ each place it appears 
and inserting ‘‘benefits’’; 
(B) by striking ‘‘coupons’’ each place it appears and 
inserting ‘‘benefits’’; and 
(C) in subsection (g)(1)(A), by striking ‘‘coupon’’ and 
inserting ‘‘benefits’’. 
(16) Section 26(f)(3) of the Food and Nutrition Act of 2008 
(7 U.S.C. 2035(f)(3)) is amended— 
(A) in subparagraph (A), by striking ‘‘subsections (a) 
through (g)’’ and inserting ‘‘subsections (a) through (f)’’; 
and 
(B) in subparagraph (E), by striking ‘‘(16), (18), (20), 
(24), and (25)’’ and inserting ‘‘(15), (17), (18), (22), and 
(23)’’. 
(c) CONFORMING CROSS-REFERENCES.— 
(1) IN GENERAL.— 
(A) USE OF TERMS.—Each provision of law described 
in subparagraph (B) is amended (as applicable)— 
(i) by striking ‘‘coupons’’ each place it appears and 
inserting ‘‘benefits’’; 
(ii) by striking ‘‘coupon’’ each place it appears and 
inserting ‘‘benefit’’; 
(iii) by striking ‘‘food coupons’’ each place it 
appears and inserting ‘‘benefits’’; 
(iv) in each section heading, by striking ‘‘FOOD 
COUPONS’’ each place it appears and inserting ‘‘BENE-
FITS’’; 
(v) by striking ‘‘food stamp coupon’’ each place 
it appears and inserting ‘‘benefit’’; and 
(vi) by striking ‘‘food stamps’’ each place it appears 
and inserting ‘‘benefits’’. 
(B) PROVISIONS OF LAW.—The provisions of law referred 
to in subparagraph (A) are the following: 
(i) Section 2 of Public Law 103–205 (7 U.S.C. 2012 
note; 107 Stat. 2418). 
(ii) Section 1956(c)(7)(D) of title 18, United States 
Code. 
(iii) Titles II through XIX of the Social Security 
Act (42 U.S.C. 401 et seq.).
H. R. 6124—221 
(iv) Section 401(b)(3) of the Social Security Amend-
ments of 1972 (42 U.S.C. 1382e note; Public Law 92– 
603). 
(v) The Robert T. Stafford Disaster Relief and 
Emergency Assistance Act (42 U.S.C. 5121 et seq.). 
(vi) Section 802(d)(2)(A)(i)(II) of the Cranston- 
Gonzalez National Affordable Housing Act (42 U.S.C. 
8011(d)(2)(A)(i)(II)). 
(2) DEFINITION REFERENCES.— 
(A) Section 2 of Public Law 103–205 (7 U.S.C. 2012 
note; 107 Stat. 2418) is amended by striking ‘‘section 
3(k)(1)’’ and inserting ‘‘section 3(p)(1)’’. 
(B) Section 205 of the Food Stamp Program Improve-
ments Act of 1994 (7 U.S.C. 2012 note; Public Law 103– 
225) is amended by striking ‘‘section 3(k) of such Act (as 
amended by section 201)’’ and inserting ‘‘section 3(p) of 
that Act’’. 
(C) Section 115 of the Personal Responsibility and 
Work Opportunity Reconciliation Act of 1996 (21 U.S.C. 
862a) is amended— 
(i) by striking ‘‘section 3(h)’’ each place it appears 
and inserting ‘‘section 3(l)’’; and 
(ii) in subsection (e)(2), by striking ‘‘section 3(m)’’ 
and inserting ‘‘section 3(s)’’. 
(D) Section 402(a) of the Personal Responsibility and 
Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 
1612(a)) is amended— 
(i) in paragraph (2)(F)(ii), by striking ‘‘section 3(r)’’ 
and inserting ‘‘section 3(j)’’; and 
(ii) in paragraph (3)(B), by striking ‘‘section 3(h)’’ 
and inserting ‘‘section 3(l)’’. 
(E) Section 3803(c)(2)(C)(vii) of title 31, United States 
Code, is amended by striking ‘‘section 3(h)’’ and inserting 
‘‘section 3(l)’’. 
(F) Section 303(d)(4) of the Social Security Act (42 
U.S.C. 503(d)(4)) is amended by striking ‘‘section 3(n)(1)’’ 
and inserting ‘‘section 3(t)(1)’’. 
(G) Section 404 of the Social Security Act (42 U.S.C. 
604) is amended by striking ‘‘section 3(h)’’ each place it 
appears and inserting ‘‘section 3(l)’’. 
(H) Section 531 of the Social Security Act (42 U.S.C. 
654) is amended by striking ‘‘section 3(h)’’ each place it 
appears and inserting ‘‘section 3(l)’’. 
(I) Section 802(d)(2)(A)(i)(II) of the Cranston-Gonzalez 
National 
Affordable 
Housing 
Act 
(42 
U.S.C. 
8011(d)(2)(A)(i)(II)) is amended by striking ‘‘(as defined in 
section 3(e) of such Act)’’. 
(d) REFERENCES.—Any reference in any Federal, State, tribal, 
or local law (including regulations) to a ‘‘coupon’’, ‘‘authorization 
card’’, or other access device provided under the Food and Nutrition 
Act of 2008 (7 U.S.C. 2011 et seq.) shall be considered to be 
a reference to a ‘‘benefit’’ provided under that Act. 
SEC. 4116. REVIEW OF MAJOR CHANGES IN PROGRAM DESIGN. 
Section 11 of the Food and Nutrition Act of 2008 (7 U.S.C. 
2020) is amended by striking the section enumerator and heading 
and subsection (a) and inserting the following:
H. R. 6124—222 
‘‘SEC. 11. ADMINISTRATION. 
‘‘(a) STATE RESPONSIBILITY.— 
‘‘(1) IN GENERAL.—The State agency of each participating 
State shall have responsibility for certifying applicant house-
holds and issuing EBT cards. 
‘‘(2) LOCAL
ADMINISTRATION.—The responsibility of the 
agency of the State government shall not be affected by whether 
the program is operated on a State-administered or county- 
administered basis, as provided under section 3(t)(1). 
‘‘(3) RECORDS.— 
‘‘(A) IN GENERAL.—Each State agency shall keep such 
records as may be necessary to determine whether the 
program is being conducted in compliance with this Act 
(including regulations issued under this Act). 
‘‘(B) INSPECTION
AND
AUDIT.—Records described in 
subparagraph (A) shall— 
‘‘(i) be available for inspection and audit at any 
reasonable time; 
‘‘(ii) subject to subsection (e)(8), be available for 
review in any action filed by a household to enforce 
any provision of this Act (including regulations issued 
under this Act); and 
‘‘(iii) be preserved for such period of not less than 
3 years as may be specified in regulations. 
‘‘(4) REVIEW
OF
MAJOR
CHANGES
IN
PROGRAM
DESIGN.— 
‘‘(A) IN GENERAL.—The Secretary shall develop stand-
ards for identifying major changes in the operations of 
a State agency, including— 
‘‘(i) large or substantially-increased numbers of 
low-income households that do not live in reasonable 
proximity to an office performing the major functions 
described in subsection (e); 
‘‘(ii) substantial increases in reliance on automated 
systems for the performance of responsibilities pre-
viously performed by personnel described in subsection 
(e)(6)(B); 
‘‘(iii) changes that potentially increase the dif-
ficulty of reporting information under subsection (e) 
or section 6(c); and 
‘‘(iv) changes that may disproportionately increase 
the burdens on any of the types of households described 
in subsection (e)(2)(A). 
‘‘(B) NOTIFICATION.—If a State agency implements a 
major change in operations, the State agency shall— 
‘‘(i) notify the Secretary; and 
‘‘(ii) collect such information as the Secretary shall 
require to identify and correct any adverse effects on 
program integrity or access, including access by any 
of the types of households described in subsection 
(e)(2)(A).’’. 
SEC. 4117. CIVIL RIGHTS COMPLIANCE. 
Section 11 of the Food and Nutrition Act of 2008 (7 U.S.C. 
2020) is amended by striking subsection (c) and inserting the fol-
lowing: 
‘‘(c) CIVIL RIGHTS COMPLIANCE.—
H. R. 6124—223 
‘‘(1) IN GENERAL.—In the certification of applicant house-
holds for the supplemental nutrition assistance program, there 
shall be no discrimination by reason of race, sex, religious 
creed, national origin, or political affiliation. 
‘‘(2) RELATION TO OTHER LAWS.—The administration of the 
program by a State agency shall be consistent with the rights 
of households under the following laws (including implementing 
regulations): 
‘‘(A) The Age Discrimination Act of 1975 (42 U.S.C. 
6101 et seq.). 
‘‘(B) Section 504 of the Rehabilitation Act of 1973 (29 
U.S.C. 794). 
‘‘(C) The Americans with Disabilities Act of 1990 (42 
U.S.C. 12101 et seq.). 
‘‘(D) Title VI of the Civil Rights Act of 1964 (42 U.S.C. 
2000d et seq.).’’. 
SEC. 4118. CODIFICATION OF ACCESS RULES. 
Section 11(e)(1) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2020(e)(1)) is amended— 
(1) by striking ‘‘shall (A) at’’ and inserting ‘‘shall— 
‘‘(A) at’’; and 
(2) by striking ‘‘and (B) use’’ and inserting ‘‘and 
‘‘(B) comply with regulations of the Secretary requiring 
the use of’’. 
SEC. 4119. STATE OPTION FOR TELEPHONIC SIGNATURE. 
Section 11(e)(2)(C) of the Food and Nutrition Act of 2008 (7 
U.S.C. 2020(e)(2)(C)) is amended— 
(1) by striking ‘‘(C) Nothing in this Act’’ and inserting 
the following: 
‘‘(C) ELECTRONIC AND AUTOMATED SYSTEMS.— 
‘‘(i) IN GENERAL.—Nothing in this Act’’; and 
(2) by adding at the end the following: 
‘‘(ii) STATE OPTION FOR TELEPHONIC SIGNATURE.— 
A State agency may establish a system by which an 
applicant household may sign an application through 
a recorded verbal assent over the telephone. 
‘‘(iii) REQUIREMENTS.—A system established under 
clause (ii) shall— 
‘‘(I) record for future reference the verbal 
assent of the household member and the informa-
tion to which assent was given; 
‘‘(II) include effective safeguards against 
impersonation, identity theft, and invasions of pri-
vacy; 
‘‘(III) not deny or interfere with the right of 
the household to apply in writing; 
‘‘(IV) promptly provide to the household 
member a written copy of the completed applica-
tion, with instructions for a simple procedure for 
correcting any errors or omissions; 
‘‘(V) comply with paragraph (1)(B); 
‘‘(VI) satisfy all requirements for a signature 
on an application under this Act and other laws 
applicable to the supplemental nutrition assistance 
program, with the date on which the household
H. R. 6124—224 
member provides verbal assent considered as the 
date of application for all purposes; and 
‘‘(VII) comply with such other standards as 
the Secretary may establish.’’. 
SEC. 4120. PRIVACY PROTECTIONS. 
Section 11(e)(8) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2020(e)(8)) is amended— 
(1) in the matter preceding subparagraph (A)— 
(A) by striking ‘‘limit’’ and inserting ‘‘prohibit’’; and 
(B) by striking ‘‘to persons’’ and all that follows through 
‘‘State programs’’; 
(2) by redesignating subparagraphs (A) through (E) as sub-
paragraphs (B) through (F), respectively; 
(3) by inserting before subparagraph (B) (as so redesig-
nated) the following: 
‘‘(A) the safeguards shall permit— 
‘‘(i) the disclosure of such information to persons 
directly connected with the administration or enforce-
ment of the provisions of this Act, regulations issued 
pursuant to this Act, Federal assistance programs, or 
federally-assisted State programs; and 
‘‘(ii) the subsequent use of the information by per-
sons described in clause (i) only for such administration 
or enforcement;’’; and 
(4) in subparagraph (F) (as so redesignated) by inserting 
‘‘or subsection (u)’’ before the semicolon at the end. 
SEC. 4121. PRESERVATION OF ACCESS AND PAYMENT ACCURACY. 
Section 16 of the Food and Nutrition Act of 2008 (7 U.S.C. 
2025) is amended by striking subsection (g) and inserting the fol-
lowing: 
‘‘(g) COST SHARING FOR COMPUTERIZATION.— 
‘‘(1) IN GENERAL.—Except as provided in paragraphs (2) 
and (3), the Secretary is authorized to pay to each State agency 
the amount provided under subsection (a)(6) for the costs 
incurred by the State agency in the planning, design, develop-
ment, or installation of 1 or more automatic data processing 
and information retrieval systems that the Secretary deter-
mines— 
‘‘(A) would assist in meeting the requirements of this 
Act; 
‘‘(B) meet such conditions as the Secretary prescribes; 
‘‘(C) are likely to provide more efficient and effective 
administration of the supplemental nutrition assistance 
program; 
‘‘(D) would be compatible with other systems used in 
the administration of State programs, including the pro-
gram funded under part A of title IV of the Social Security 
Act (42 U.S.C. 601 et seq.); 
‘‘(E) would be tested adequately before and after 
implementation, including through pilot projects in limited 
areas for major systems changes as determined under rules 
promulgated by the Secretary, data from which shall be 
thoroughly evaluated before the Secretary approves the 
system to be implemented more broadly; and 
‘‘(F) would be operated in accordance with an adequate 
plan for—
H. R. 6124—225 
‘‘(i) continuous updating to reflect changed policy 
and circumstances; and 
‘‘(ii) testing the effect of the system on access for 
eligible households and on payment accuracy. 
‘‘(2) LIMITATION.—The Secretary shall not make payments 
to a State agency under paragraph (1) to the extent that the 
State agency— 
‘‘(A) is reimbursed for the costs under any other Fed-
eral program; or 
‘‘(B) uses the systems for purposes not connected with 
the supplemental nutrition assistance program.’’. 
SEC. 4122. FUNDING OF EMPLOYMENT AND TRAINING PROGRAMS. 
Section 16(h)(1)(A) of the Food and Nutrition Act of 2008 (7 
U.S.C. 2025(h)(1)(A)) is amended in subparagraph (A), by striking 
‘‘to remain available until expended’’ and inserting ‘‘to remain avail-
able for 15 months’’. 
PART IV—PROGRAM INTEGRITY 
SEC. 4131. ELIGIBILITY DISQUALIFICATION. 
Section 6 of the Food and Nutrition Act of 2008 (7 U.S.C. 
2015) is amended by adding at the end the following: 
‘‘(p) DISQUALIFICATION FOR OBTAINING CASH BY DESTROYING 
FOOD
AND COLLECTING DEPOSITS.—Subject to any requirements 
established by the Secretary, any person who has been found by 
a State or Federal court or administrative agency in a hearing 
under subsection (b) to have intentionally obtained cash by pur-
chasing products with supplemental nutrition assistance program 
benefits that have containers that require return deposits, dis-
carding the product, and returning the container for the deposit 
amount shall be ineligible for benefits under this Act for such 
period of time as the Secretary shall prescribe by regulation. 
‘‘(q) DISQUALIFICATION FOR SALE OF FOOD PURCHASED WITH 
SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM BENEFITS.—Sub-
ject to any requirements established by the Secretary, any person 
who has been found by a State or Federal court or administrative 
agency in a hearing under subsection (b) to have intentionally 
sold any food that was purchased using supplemental nutrition 
assistance program benefits shall be ineligible for benefits under 
this Act for such period of time as the Secretary shall prescribe 
by regulation.’’. 
SEC. 4132. CIVIL PENALTIES AND DISQUALIFICATION OF RETAIL FOOD 
STORES AND WHOLESALE FOOD CONCERNS. 
Section 12 of the Food and Nutrition Act of 2008 (7 U.S.C. 
2021) is amended— 
(1) by striking the section designation and heading and 
all that follows through the end of subsection (a) and inserting 
the following: 
‘‘SEC. 12. CIVIL PENALTIES AND DISQUALIFICATION OF RETAIL FOOD 
STORES AND WHOLESALE FOOD CONCERNS. 
‘‘(a) DISQUALIFICATION.— 
‘‘(1) IN GENERAL.—An approved retail food store or whole-
sale food concern that violates a provision of this Act or a 
regulation under this Act may be—
H. R. 6124—226 
‘‘(A) disqualified for a specified period of time from 
further participation in the supplemental nutrition assist-
ance program; 
‘‘(B) assessed a civil penalty of up to $100,000 for 
each violation; or 
‘‘(C) both. 
‘‘(2) REGULATIONS.—Regulations promulgated under this 
Act shall provide criteria for the finding of a violation of, 
the suspension or disqualification of and the assessment of 
a civil penalty against a retail food store or wholesale food 
concern on the basis of evidence that may include facts estab-
lished through on-site investigations, inconsistent redemption 
data, or evidence obtained through a transaction report under 
an electronic benefit transfer system.’’; 
(2) in subsection (b)— 
(A) by striking ‘‘(b) Disqualification’’ and inserting the 
following: 
‘‘(b) PERIOD OF DISQUALIFICATION.—Subject to subsection (c), 
a disqualification’’; 
(B) in paragraph (1), by striking ‘‘of no less than six 
months nor more than five years’’ and inserting ‘‘not to 
exceed 5 years’’; 
(C) in paragraph (2), by striking ‘‘of no less than twelve 
months nor more than ten years’’ and inserting ‘‘not to 
exceed 10 years’’; 
(D) in paragraph (3)(B)— 
(i) by inserting ‘‘or a finding of the unauthorized 
redemption, use, transfer, acquisition, alteration, or 
possession of EBT cards’’ after ‘‘concern’’ the first place 
it appears; and 
(ii) by striking ‘‘civil money penalties’’ and 
inserting ‘‘civil penalties’’; and 
(E) by striking ‘‘civil money penalty’’ each place it 
appears and inserting ‘‘civil penalty’’; 
(3) in subsection (c)— 
(A) by striking ‘‘(c) The action’’ and inserting the fol-
lowing: 
‘‘(c) CIVIL PENALTY AND REVIEW OF DISQUALIFICATION AND PEN-
ALTY DETERMINATIONS.— 
‘‘(1) CIVIL PENALTY.—In addition to a disqualification under 
this section, the Secretary may assess a civil penalty in an 
amount not to exceed $100,000 for each violation. 
‘‘(2) REVIEW.—The action’’; and 
(B) in paragraph (2) (as designated by subparagraph 
(A)), by striking ‘‘civil money penalty’’ and inserting ‘‘civil 
penalty’’; 
(4) in subsection (d)— 
(A) by striking ‘‘(d)’’ and all that follows through ‘‘. 
The Secretary shall’’ and inserting the following: 
‘‘(d) CONDITIONS OF AUTHORIZATION.— 
‘‘(1) IN GENERAL.—As a condition of authorization to accept 
and redeem benefits, the Secretary may require a retail food 
store or wholesale food concern that, pursuant to subsection 
(a), has been disqualified for more than 180 days, or has been 
subjected to a civil penalty in lieu of a disqualification period 
of more than 180 days, to furnish a collateral bond or irrev-
ocable letter of credit for a period of not more than 5 years
H. R. 6124—227 
to cover the value of benefits that the store or concern may 
in the future accept and redeem in violation of this Act. 
‘‘(2) COLLATERAL.—The Secretary also may require a retail 
food store or wholesale food concern that has been sanctioned 
for a violation and incurs a subsequent sanction regardless 
of the length of the disqualification period to submit a collateral 
bond or irrevocable letter of credit. 
‘‘(3) BOND REQUIREMENTS.—The Secretary shall’’; 
(B) by striking ‘‘If the Secretary finds’’ and inserting 
the following 
‘‘(4) FORFEITURE.—If the Secretary finds’’; and 
(C) by striking ‘‘Such store or concern’’ and inserting 
the following: 
‘‘(5) HEARING.—A store or concern described in paragraph 
(4)’’; 
(5) in subsection (e), by striking ‘‘civil money penalty’’ each 
place it appears and inserting ‘‘civil penalty’’; and 
(6) by adding at the end the following: 
‘‘(h) FLAGRANT VIOLATIONS.— 
‘‘(1) IN GENERAL.—The Secretary, in consultation with the 
Inspector General of the Department of Agriculture, shall estab-
lish procedures under which the processing of program benefit 
redemptions for a retail food store or wholesale food concern 
may be immediately suspended pending administrative action 
to disqualify the retail food store or wholesale food concern. 
‘‘(2) REQUIREMENTS.—Under the procedures described in 
paragraph (1), if the Secretary, in consultation with the 
Inspector General, determines that a retail food store or whole-
sale food concern is engaged in flagrant violations of this Act 
(including regulations promulgated under this Act), unsettled 
program benefits that have been redeemed by the retail food 
store or wholesale food concern— 
‘‘(A) may be suspended; and 
‘‘(B)(i) if the program disqualification is upheld, may 
be subject to forfeiture pursuant to section 15(g); or 
‘‘(ii) if the program disqualification is not upheld, shall 
be released to the retail food store or wholesale food con-
cern. 
‘‘(3) NO LIABILITY FOR INTEREST.—The Secretary shall not 
be liable for the value of any interest on funds suspended 
under this subsection.’’. 
SEC. 4133. MAJOR SYSTEMS FAILURES. 
Section 13(b) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2022(b)) is amended by adding at the end the following: 
‘‘(5) OVERISSUANCES CAUSED BY SYSTEMIC STATE ERRORS.— 
‘‘(A) IN GENERAL.—If the Secretary determines that 
a State agency overissued benefits to a substantial number 
of households in a fiscal year as a result of a major systemic 
error by the State agency, as defined by the Secretary, 
the Secretary may prohibit the State agency from collecting 
these overissuances from some or all households. 
‘‘(B) PROCEDURES.— 
‘‘(i) INFORMATION
REPORTING
BY
STATES.—Every 
State agency shall provide to the Secretary all informa-
tion requested by the Secretary concerning the issuance
H. R. 6124—228 
of benefits to households by the State agency in the 
applicable fiscal year. 
‘‘(ii) FINAL DETERMINATION.—After reviewing rel-
evant information provided by a State agency, the Sec-
retary shall make a final determination— 
‘‘(I) whether the State agency overissued bene-
fits to a substantial number of households as a 
result of a systemic error in the applicable fiscal 
year; and 
‘‘(II) as to the amount of the overissuance in 
the applicable fiscal year for which the State 
agency is liable. 
‘‘(iii) ESTABLISHING A CLAIM.—Upon determining 
under clause (ii) that a State agency has overissued 
benefits to households due to a major systemic error 
determined under subparagraph (A), the Secretary 
shall establish a claim against the State agency equal 
to the value of the overissuance caused by the systemic 
error. 
‘‘(iv) ADMINISTRATIVE
AND
JUDICIAL
REVIEW.— 
Administrative and judicial review, as provided in sec-
tion 14, shall apply to the final determinations by 
the Secretary under clause (ii). 
‘‘(v) REMISSION TO THE SECRETARY.— 
‘‘(I) DETERMINATION
NOT
APPEALED.—If the 
determination of the Secretary under clause (ii) 
is not appealed, the State agency shall, as soon 
as practicable, remit to the Secretary the dollar 
amount specified in the claim under clause (iii). 
‘‘(II) DETERMINATION APPEALED.—If the deter-
mination of the Secretary under clause (ii) is 
appealed, upon completion of administrative and 
judicial review under clause (iv), and a finding 
of liability on the part of the State, the appealing 
State agency shall, as soon as practicable, remit 
to the Secretary a dollar amount subject to the 
finding made in the administrative and judicial 
review. 
‘‘(vi) ALTERNATIVE METHOD OF COLLECTION.— 
‘‘(I) IN GENERAL.—If a State agency fails to 
make a payment under clause (v) within a reason-
able period of time, as determined by the Sec-
retary, the Secretary may reduce any amount due 
to the State agency under any other provision 
of this Act by the amount due. 
‘‘(II) ACCRUAL
OF
INTEREST.—During the 
period of time determined by the Secretary to be 
reasonable under subclause (I), interest in the 
amount owed shall not accrue. 
‘‘(vii) LIMITATION.—Any liability amount estab-
lished under section 16(c)(1)(C) shall be reduced by 
the amount of the claim established under this 
subparagraph.’’.
H. R. 6124—229 
PART V—MISCELLANEOUS 
SEC. 4141. PILOT PROJECTS TO EVALUATE HEALTH AND NUTRITION 
PROMOTION IN THE SUPPLEMENTAL NUTRITION ASSIST-
ANCE PROGRAM. 
Section 17 of the Food and Nutrition Act of 2008 (7 U.S.C. 
2026) is amended by adding at the end the following: 
‘‘(k) PILOT PROJECTS
TO EVALUATE HEALTH
AND NUTRITION 
PROMOTION
IN
THE SUPPLEMENTAL NUTRITION ASSISTANCE PRO-
GRAM.— 
‘‘(1) IN GENERAL.—The Secretary shall carry out, under 
such terms and conditions as the Secretary considers to be 
appropriate, pilot projects to develop and test methods— 
‘‘(A) of using the supplemental nutrition assistance 
program to improve the dietary and health status of house-
holds eligible for or participating in the supplemental nutri-
tion assistance program; and 
‘‘(B) to reduce overweight, obesity (including childhood 
obesity), and associated co-morbidities in the United States. 
‘‘(2) GRANTS.— 
‘‘(A) IN GENERAL.—In carrying out this subsection, the 
Secretary may enter into competitively awarded contracts 
or cooperative agreements with, or provide grants to, public 
or private organizations or agencies (as defined by the 
Secretary), for use in accordance with projects that meet 
the strategy goals of this subsection. 
‘‘(B) APPLICATION.—To be eligible to receive a contract, 
cooperative agreement, or grant under this paragraph, an 
organization shall submit to the Secretary an application 
at such time, in such manner, and containing such informa-
tion as the Secretary may require. 
‘‘(C) SELECTION CRITERIA.—Pilot projects shall be evalu-
ated against publicly disseminated criteria that may 
include— 
‘‘(i) identification of a low-income target audience 
that corresponds to individuals living in households 
with incomes at or below 185 percent of the poverty 
level; 
‘‘(ii) incorporation of a scientifically based strategy 
that is designed to improve diet quality through more 
healthful food purchases, preparation, or consumption; 
‘‘(iii) a commitment to a pilot project that allows 
for a rigorous outcome evaluation, including data 
collection; 
‘‘(iv) strategies to improve the nutritional value 
of food served during school hours and during after- 
school hours; 
‘‘(v) innovative ways to provide significant improve-
ment to the health and wellness of children; 
‘‘(vi) other criteria, as determined by the Secretary. 
‘‘(D) USE OF FUNDS.—Funds provided under this para-
graph shall not be used for any project that limits the 
use of benefits under this Act. 
‘‘(3) PROJECTS.—Pilot projects carried out under paragraph 
(1) may include projects to determine whether healthier food
H. R. 6124—230 
purchases by and healthier diets among households partici-
pating in the supplemental nutrition assistance program result 
from projects that— 
‘‘(A) increase the supplemental nutrition assistance 
purchasing power of the participating households by pro-
viding increased supplemental nutrition assistance pro-
gram benefit allotments to the participating households; 
‘‘(B) increase access to farmers markets by partici-
pating households through the electronic redemption of 
supplemental nutrition assistance program benefits at 
farmers’ markets; 
‘‘(C) provide incentives to authorized supplemental 
nutrition assistance program retailers to increase the avail-
ability of healthy foods to participating households; 
‘‘(D) subject authorized supplemental nutrition assist-
ance program retailers to stricter retailer requirements 
with respect to carrying and stocking healthful foods; 
‘‘(E) provide incentives at the point of purchase to 
encourage households participating in the supplemental 
nutrition assistance program to purchase fruits, vegetables, 
or other healthful foods; or 
‘‘(F) provide to participating households integrated 
communication and education programs, including the 
provision of funding for a portion of a school-based nutrition 
coordinator to implement a broad nutrition action plan 
and parent nutrition education programs in elementary 
schools, separately or in combination with pilot projects 
carried out under subparagraphs (A) through (E). 
‘‘(4) EVALUATION AND REPORTING.— 
‘‘(A) EVALUATION.— 
‘‘(i) INDEPENDENT EVALUATION.— 
‘‘(I) IN GENERAL.—The Secretary shall provide 
for an independent evaluation of projects selected 
under this subsection that measures the impact 
of the pilot program on health and nutrition as 
described in paragraph (1). 
‘‘(II) REQUIREMENT.—The independent evalua-
tion under subclause (I) shall use rigorous meth-
odologies, particularly random assignment or other 
methods that are capable of producing scientif-
ically valid information regarding which activities 
are effective. 
‘‘(ii) COSTS.—The Secretary may use funds pro-
vided to carry out this section to pay costs associated 
with monitoring and evaluating each pilot project. 
‘‘(B) REPORTING.—Not later than 90 days after the 
last day of fiscal year 2009 and each fiscal year thereafter 
until the completion of the last evaluation under subpara-
graph (A), the Secretary shall submit to the Committee 
on Agriculture of the House of Representatives and the 
Committee on Agriculture, Nutrition, and Forestry of the 
Senate a report that includes a description of— 
‘‘(i) the status of each pilot project; 
‘‘(ii) the results of the evaluation completed during 
the previous fiscal year; and 
‘‘(iii) to the maximum extent practicable—
H. R. 6124—231 
‘‘(I) the impact of the pilot project on appro-
priate health, nutrition, and associated behavioral 
outcomes among households participating in the 
pilot project; 
‘‘(II) baseline information relevant to the 
stated goals and desired outcomes of the pilot 
project; and 
‘‘(III) equivalent information about similar or 
identical measures among control or comparison 
groups that did not participate in the pilot project. 
‘‘(C) PUBLIC
DISSEMINATION.—In addition to the 
reporting requirements under subparagraph (B), evaluation 
results shall be shared broadly to inform policy makers, 
service providers, other partners, and the public in order 
to promote wide use of successful strategies. 
‘‘(5) FUNDING.— 
‘‘(A) AUTHORIZATION
OF
APPROPRIATIONS.—There are 
authorized to be appropriated such sums as are necessary 
to carry out this section for each of fiscal years 2008 
through 2012. 
‘‘(B) MANDATORY FUNDING.—Out of any funds made 
available under section 18, on October 1, 2008, the Sec-
retary shall make available $20,000,000 to carry out a 
project described in paragraph (3)(E), to remain available 
until expended.’’. 
SEC. 4142. STUDY ON COMPARABLE ACCESS TO SUPPLEMENTAL 
NUTRITION ASSISTANCE FOR PUERTO RICO. 
(a) IN GENERAL.—The Secretary shall carry out a study of 
the feasibility and effects of including the Commonwealth of Puerto 
Rico in the definition of the term ‘‘State’’ under section 3 of the 
Food and Nutrition Act of 2008 (7 U.S.C. 2012), in lieu of providing 
block grants under section 19 of that Act (7 U.S.C. 2028). 
(b) INCLUSIONS.—The study shall include— 
(1) an assessment of the administrative, financial manage-
ment, and other changes that would be necessary for the 
Commonwealth to establish a comparable supplemental nutri-
tion assistance program, including compliance with appropriate 
program rules under the Food and Nutrition Act of 2008 (7 
U.S.C. 2011 et seq.), such as— 
(A) benefit levels under section 3(u) of that Act (7 
U.S.C. 2012(u)); 
(B) income eligibility standards under sections 5(c) and 
6 of that Act (7 U.S.C. 2014(c), 2015); and 
(C) deduction levels under section 5(e) of that Act 
(7 U.S.C. 2014(e)); 
(2) an estimate of the impact on Federal and Common-
wealth benefit and administrative costs; 
(3) an assessment of the impact of the program on low- 
income Puerto Ricans, as compared to the program under sec-
tion 19 of that Act (7 U.S.C. 2028); and 
(4) such other matters as the Secretary considers to be 
appropriate. 
(c) REPORT.—Not later than 2 years after the date of enactment 
of this Act, the Secretary shall submit to the Committee on Agri-
culture of the House of Representatives and the Committee on
H. R. 6124—232 
Agriculture, Nutrition, and Forestry of the Senate a report that 
describes the results of the study conducted under this section. 
(d) FUNDING.— 
(1) IN GENERAL.—On October 1, 2008, out of any funds 
in the Treasury not otherwise appropriated, the Secretary of 
the Treasury shall transfer to the Secretary to carry out this 
section $1,000,000, to remain available until expended. 
(2) RECEIPT AND ACCEPTANCE.—The Secretary shall be enti-
tled to receive, shall accept, and shall use to carry out this 
section the funds transferred under paragraph (1), without 
further appropriation. 
Subtitle B—Food Distribution Programs 
PART I—EMERGENCY FOOD ASSISTANCE 
PROGRAM 
SEC. 4201. EMERGENCY FOOD ASSISTANCE. 
(a) PURCHASE OF COMMODITIES.—Section 27(a) of the Food and 
Nutrition Act of 2008 (7 U.S.C. 2036(a)) is amended by – 
(1) by striking ‘‘(A) PURCHASE OF COMMODITIES’’ and all 
that follows through ‘‘$140,000,000 of’’ and inserting the fol-
lowing: 
‘‘(a) PURCHASE OF COMMODITIES.— 
‘‘(1) IN GENERAL.—From amounts made available to carry 
out this Act, for each of the fiscal years 2008 through 2012, 
the Secretary shall purchase a dollar amount described in para-
graph (2) of’’; and 
(2) by adding at the end the following: 
‘‘(2) AMOUNTS.—The Secretary shall use to carry out para-
graph (1)— 
‘‘(A) for fiscal year 2008, $190,000,000; 
‘‘(B) for fiscal year 2009, $250,000,000; and 
‘‘(C) for each of fiscal years 2010 through 2012, the 
dollar amount of commodities specified in subparagraph 
(B) adjusted by the percentage by which the thrifty food 
plan has been adjusted under section 3(u)(4) between June 
30, 2008, and June 30 of the immediately preceding fiscal 
year.’’. 
(b) STATE PLANS.—Section 202A of the Emergency Food Assist-
ance Act of 1983 (7 U.S.C. 7503) is amended by striking subsection 
(a) and inserting the following: 
‘‘(a) PLANS.— 
‘‘(1) IN GENERAL.—To receive commodities under this Act, 
a State shall submit to the Secretary an operation and adminis-
tration plan for the provision of benefits under this Act. 
‘‘(2) UPDATES.—A State shall submit to the Secretary for 
approval any amendment to a plan submitted under paragraph 
(1) in any case in which the State proposes to make a change 
to the operation or administration of a program described in 
the plan.’’. 
(c) AUTHORIZATION AND APPROPRIATIONS.—Section 204(a)(1) of 
the Emergency Food Assistance Act of 1983 (7 U.S.C. 7508(a)(1)) 
is amended in the first sentence— 
(1) by striking ‘‘$60,000,000’’ and inserting ‘‘$100,000,000’’; 
and
H. R. 6124—233 
(2) by inserting ‘‘and donated wild game’’ before the period 
at the end. 
SEC. 4202. EMERGENCY FOOD PROGRAM INFRASTRUCTURE GRANTS. 
The Emergency Food Assistance Act of 1983 is amended by 
inserting after section 208 (7 U.S.C. 7511) the following: 
‘‘SEC. 209. EMERGENCY FOOD PROGRAM INFRASTRUCTURE GRANTS. 
‘‘(a) DEFINITION OF ELIGIBLE ENTITY.—In this section, the term 
‘eligible entity’ means an emergency feeding organization. 
‘‘(b) PROGRAM AUTHORIZED.— 
‘‘(1) IN
GENERAL.—The Secretary shall use funds made 
available under subsection (d) to make grants to eligible entities 
to pay the costs of an activity described in subsection (c). 
‘‘(2) RURAL PREFERENCE.—The Secretary shall use not less 
than 50 percent of the funds described in paragraph (1) for 
a fiscal year to make grants to eligible entities that serve 
predominantly rural communities for the purposes of— 
‘‘(A) expanding the capacity and infrastructure of food 
banks, State-wide food bank associations, and food bank 
collaboratives that operate in rural areas; and 
‘‘(B) improving the capacity of the food banks to pro-
cure, receive, store, distribute, track, and deliver time- 
sensitive or perishable food products. 
‘‘(c) USE
OF FUNDS.—An eligible entity shall use a grant 
received under this section for any fiscal year to carry out activities 
of the eligible entity, including— 
‘‘(1) the development and maintenance of a computerized 
system for the tracking of time-sensitive food products; 
‘‘(2) capital, infrastructure, and operating costs associated 
with the collection, storage, distribution, and transportation 
of time-sensitive and perishable food products; 
‘‘(3) improving the security and diversity of the emergency 
food distribution and recovery systems of the United States 
through the support of small or mid-size farms and ranches, 
fisheries, and aquaculture, and donations from local food pro-
ducers and manufacturers to persons in need; 
‘‘(4) providing recovered foods to food banks and similar 
nonprofit emergency food providers to reduce hunger in the 
United States; 
‘‘(5) improving the identification of— 
‘‘(A) potential providers of donated foods; 
‘‘(B) potential nonprofit emergency food providers; and 
‘‘(C) persons in need of emergency food assistance in 
rural areas; and 
‘‘(6) constructing, expanding, or repairing a facility or equip-
ment to support hunger relief agencies in the community. 
‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 
to be appropriated to carry out this section $15,000,000 for each 
of fiscal years 2008 through 2012.’’.
H. R. 6124—234 
PART II—FOOD DISTRIBUTION PROGRAM ON 
INDIAN RESERVATIONS 
SEC. 4211. ASSESSING THE NUTRITIONAL VALUE OF THE FDPIR FOOD 
PACKAGE. 
(a) IN GENERAL.—Section 4 of the Food and Nutrition Act 
of 2008 (7 U.S.C. 2013) is amended by striking subsection (b) 
and inserting the following: 
‘‘(b) FOOD DISTRIBUTION PROGRAM ON INDIAN RESERVATIONS.— 
‘‘(1) IN
GENERAL.—Distribution of commodities, with or 
without the supplemental nutrition assistance program, shall 
be made whenever a request for concurrent or separate food 
program operations, respectively, is made by a tribal organiza-
tion. 
‘‘(2) ADMINISTRATION.— 
‘‘(A) IN GENERAL.—Subject to subparagraphs (B) and 
(C), in the event of distribution on all or part of an Indian 
reservation, the appropriate agency of the State govern-
ment in the area involved shall be responsible for the 
distribution. 
‘‘(B) ADMINISTRATION BY TRIBAL ORGANIZATION.—If the 
Secretary determines that a tribal organization is capable 
of effectively and efficiently administering a distribution 
described in paragraph (1), then the tribal organization 
shall administer the distribution. 
‘‘(C) PROHIBITION.—The Secretary shall not approve 
any plan for a distribution described in paragraph (1) that 
permits any household on any Indian reservation to partici-
pate simultaneously in the supplemental nutrition assist-
ance program and the program established under this sub-
section. 
‘‘(3) DISQUALIFIED PARTICIPANTS.—An individual who is dis-
qualified from participation in the food distribution program 
on Indian reservations under this subsection is not eligible 
to participate in the supplemental nutrition assistance program 
under this Act for a period of time to be determined by the 
Secretary. 
‘‘(4) ADMINISTRATIVE COSTS.—The Secretary is authorized 
to pay such amounts for administrative costs and distribution 
costs on Indian reservations as the Secretary finds necessary 
for effective administration of such distribution by a State 
agency or tribal organization. 
‘‘(5) BISON MEAT.—Subject to the availability of appropria-
tions to carry out this paragraph, the Secretary may purchase 
bison meat for recipients of food distributed under this sub-
section, including bison meat from— 
‘‘(A) Native American bison producers; and 
‘‘(B) producer–owned cooperatives of bison ranchers. 
‘‘(6) TRADITIONAL AND LOCALLY-GROWN FOOD FUND.— 
‘‘(A) IN GENERAL.—Subject to the availability of appro-
priations, the Secretary shall establish a fund for use in 
purchasing traditional and locally-grown foods for recipi-
ents of food distributed under this subsection. 
‘‘(B) NATIVE
AMERICAN
PRODUCERS.—Where prac-
ticable, of the food provided under subparagraph (A), at
H. R. 6124—235 
least 50 percent shall be produced by Native American 
farmers, ranchers, and producers. 
‘‘(C) 
DEFINITION
OF
TRADITIONAL
AND
LOCALLY 
GROWN.—The Secretary shall determine the definition of 
the term ‘traditional and locally-grown’ with respect to 
food distributed under this paragraph. 
‘‘(D) SURVEY.—In carrying out this paragraph, the Sec-
retary shall— 
‘‘(i) survey participants of the food distribution pro-
gram on Indian reservations established under this 
subsection to determine which traditional foods are 
most desired by those participants; and 
‘‘(ii) purchase or offer to purchase those traditional 
foods that may be procured cost-effectively. 
‘‘(E) REPORT.—Not later than 1 year after the date 
of enactment of this paragraph, and annually thereafter, 
the Secretary shall submit to the Committee on Agriculture 
of the House of Representatives and the Committee on 
Agriculture, Nutrition, and Forestry of the Senate a report 
describing the activities carried out under this paragraph 
during the preceding calendar year. 
‘‘(F) AUTHORIZATION
OF
APPROPRIATIONS.—There is 
authorized to be appropriated to the Secretary to carry 
out this paragraph $5,000,000 for each of fiscal years 2008 
through 2012.’’. 
(b) FDPIR FOOD PACKAGE.—Not later than 180 days after 
the date of enactment of this Act, the Secretary shall submit to 
the Committee on Agriculture of the House of Representatives 
and the Committee on Agriculture, Nutrition, and Forestry of the 
Senate a report that describes— 
(1) how the Secretary derives the process for determining 
the food package under the food distribution program on Indian 
reservations established under section 4(b) of the Food and 
Nutrition Act of 2008 (7 U.S.C. 2013(b)) (referred to in this 
subsection as the ‘‘food package’’); 
(2) the extent to which the food package— 
(A) addresses the nutritional needs of low-income 
Native Americans compared to the supplemental nutrition 
assistance program, particularly for very low-income house-
holds; 
(B) conforms (or fails to conform) to the 2005 Dietary 
Guidelines for Americans published under section 301 of 
the National Nutrition Monitoring and Related Research 
Act of 1990 (7 U.S.C. 5341); 
(C) addresses (or fails to address) the nutritional and 
health challenges that are specific to Native Americans; 
and 
(D) is limited by distribution costs or challenges in 
infrastructure; and 
(3)(A) any plans of the Secretary to revise and update 
the food package to conform with the most recent Dietary 
Guidelines for Americans, including any costs associated with 
the planned changes; or 
(B) if the Secretary does not plan changes to the food 
package, the rationale of the Secretary for retaining the food 
package.
H. R. 6124—236 
PART III—COMMODITY SUPPLEMENTAL FOOD 
PROGRAM 
SEC. 4221. COMMODITY SUPPLEMENTAL FOOD PROGRAM. 
Section 5 of the Agriculture and Consumer Protection Act of 
1973 (7 U.S.C. 612c note; Public Law 93–86) is amended by striking 
subsection (g) and inserting the following: 
‘‘(g) PROHIBITION.—Notwithstanding any other provision of law 
(including regulations), the Secretary may not require a State or 
local agency to prioritize assistance to a particular group of individ-
uals that are— 
‘‘(1) low-income persons aged 60 and older; or 
‘‘(2) women, infants, and children.’’. 
PART IV—SENIOR FARMERS’ MARKET 
NUTRITION PROGRAM 
SEC. 4231. SENIORS FARMERS’ MARKET NUTRITION PROGRAM. 
Section 4402 of the Farm Security and Rural Investment Act 
of 2002 (7 U.S.C. 3007) is amended— 
(1) in subsection (b)(1), by inserting ‘‘honey,’’ after ‘‘vegeta-
bles,’’; 
(2) by striking subsection (c) and inserting the following: 
‘‘(c) EXCLUSION OF BENEFITS IN DETERMINING ELIGIBILITY FOR 
OTHER PROGRAMS.—The value of any benefit provided to any eligible 
seniors farmers’ market nutrition program recipient under this 
section shall not be considered to be income or resources for any 
purposes under any Federal, State, or local law.’’; and 
(3) by adding at the end the following: 
‘‘(d) PROHIBITION ON COLLECTION OF SALES TAX.—Each State 
shall ensure that no State or local tax is collected within the 
State on a purchase of food with a benefit distributed under the 
seniors farmers’ market nutrition program. 
‘‘(e) REGULATIONS.—The Secretary may promulgate such regula-
tions as the Secretary considers to be necessary to carry out the 
seniors farmers’ market nutrition program.’’. 
Subtitle C—Child Nutrition and Related 
Programs 
SEC. 
4301. 
STATE 
PERFORMANCE 
ON 
ENROLLING 
CHILDREN 
RECEIVING PROGRAM BENEFITS FOR FREE SCHOOL 
MEALS. 
(a) IN GENERAL.—Not later than December 31, 2008 and June 
30 of each year thereafter, the Secretary shall submit to the 
Committees on Agriculture and Education and Labor of the House 
of Representatives and the Committee on Agriculture, Nutrition, 
and Forestry of the Senate a report that assesses the effectiveness 
of each State in enrolling school-aged children in households 
receiving program benefits under the Food and Nutrition Act of 
2008 (7 U.S.C. 2011 et seq.) (referred to in this section as ‘‘program 
benefits’’) for free school meals using direct certification. 
(b) SPECIFIC MEASURES.—The assessment of the Secretary of 
the performance of each State shall include—
H. R. 6124—237 
(1) an estimate of the number of school-aged children, 
by State, who were members of a household receiving program 
benefits at any time in July, August, or September of the 
prior year; 
(2) an estimate of the number of school-aged children, 
by State, who were directly certified as eligible for free lunches 
under the Richard B. Russell National School Lunch Act (42 
U.S.C. 1751 et seq.), based on receipt of program benefits, 
as of October 1 of the prior year; and 
(3) an estimate of the number of school-aged children, 
by State, who were members of a household receiving program 
benefits at any time in July, August, or September of the 
prior year who were not candidates for direct certification 
because on October 1 of the prior year the children attended 
a school operating under the special assistance provisions of 
section 11(a)(1) of the Richard B. Russell National School Lunch 
Act (42 U.S.C. 1759a(a)(1)) that is not operating in a base 
year. 
(c) PERFORMANCE INNOVATIONS.—The report of the Secretary 
shall describe best practices from States with the best performance 
or the most improved performance from the previous year. 
SEC. 4302. PURCHASES OF LOCALLY PRODUCED FOODS. 
Section 9(j) of the Richard B. Russell National School Lunch 
Act (42 U.S.C. 1758(j)) is amended to read as follows: 
‘‘(j) PURCHASES OF LOCALLY PRODUCED FOODS.—The Secretary 
shall— 
‘‘(1) encourage institutions receiving funds under this Act 
and the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) 
to purchase unprocessed agricultural products, both locally 
grown and locally raised, to the maximum extent practicable 
and appropriate; 
‘‘(2) advise institutions participating in a program described 
in paragraph (1) of the policy described in that paragraph 
and paragraph (3) and post information concerning the policy 
on the website maintained by the Secretary; and 
‘‘(3) allow institutions receiving funds under this Act and 
the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.), 
including the Department of Defense Fresh Fruit and Vegetable 
Program, to use a geographic preference for the procurement 
of unprocessed agricultural products, both locally grown and 
locally raised.’’. 
SEC. 
4303. 
HEALTHY 
FOOD 
EDUCATION 
AND 
PROGRAM 
REPLICABILITY. 
Section 18(h) of the Richard B. Russell National School Lunch 
Act (42 U.S.C. 1769(h)) is amended— 
(1) in paragraph (1)(C), by inserting ‘‘promotes healthy 
food education in the school curriculum and’’ before ‘‘incor-
porates’’; 
(2) by redesignating paragraph (2) as paragraph (4); and 
(3) by inserting after paragraph (1) the following: 
‘‘(2) ADMINISTRATION.—In providing grants under para-
graph (1), the Secretary shall give priority to projects that 
can be replicated in schools. 
‘‘(3) PILOT PROGRAM FOR HIGH-POVERTY SCHOOLS.— 
‘‘(A) DEFINITIONS.—In this paragraph:
H. R. 6124—238 
‘‘(i) ELIGIBLE
PROGRAM.—The term ‘eligible pro-
gram’ means— 
‘‘(I) a school-based program with hands-on 
vegetable gardening and nutrition education that 
is incorporated into the curriculum for 1 or more 
grades at 2 or more eligible schools; or 
‘‘(II) a community-based summer program 
with hands-on vegetable gardening and nutrition 
education that is part of, or coordinated with, a 
summer enrichment program at 2 or more eligible 
schools. 
‘‘(ii) ELIGIBLE SCHOOL.—The term ‘eligible school’ 
means a public school, at least 50 percent of the stu-
dents of which are eligible for free or reduced price 
meals under this Act. 
‘‘(B) ESTABLISHMENT.—The Secretary shall carry out 
a pilot program under which the Secretary shall provide 
to nonprofit organizations or public entities in not more 
than 5 States grants to develop and run, through eligible 
programs, community gardens at eligible schools in the 
States that would— 
‘‘(i) be planted, cared for, and harvested by stu-
dents at the eligible schools; and 
‘‘(ii) teach the students participating in the commu-
nity gardens about agriculture production practices and 
diet. 
‘‘(C) PRIORITY STATES.—Of the States in which grantees 
under this paragraph are located— 
‘‘(i) at least 1 State shall be among the 15 largest 
States, as determined by the Secretary; 
‘‘(ii) at least 1 State shall be among the 16th 
to 30th largest States, as determined by the Secretary; 
and 
‘‘(iii) at least 1 State shall be a State that is 
not described in clause (i) or (ii). 
‘‘(D) USE
OF
PRODUCE.—Produce from a community 
garden provided a grant under this paragraph may be— 
‘‘(i) used to supplement food provided at the eligible 
school; 
‘‘(ii) distributed to students to bring home to the 
families of the students; or 
‘‘(iii) donated to a local food bank or senior center 
nutrition program. 
‘‘(E) NO
COST-SHARING
REQUIREMENT.—A nonprofit 
organization or public entity that receives a grant under 
this paragraph shall not be required to share the cost 
of carrying out the activities assisted under this paragraph. 
‘‘(F) EVALUATION.—A nonprofit organization or public 
entity that receives a grant under this paragraph shall 
be required to cooperate in an evaluation in accordance 
with paragraph (1)(H).’’. 
SEC. 4304. FRESH FRUIT AND VEGETABLE PROGRAM. 
(a) PROGRAM.— 
(1) IN GENERAL.—The Richard B. Russell National School 
Lunch Act is amended by inserting after section 18 (42 U.S.C. 
1769) the following:
H. R. 6124—239 
‘‘SEC. 19. FRESH FRUIT AND VEGETABLE PROGRAM. 
‘‘(a) IN GENERAL.—For the school year beginning July 2008 
and each subsequent school year, the Secretary shall provide grants 
to States to carry out a program to make free fresh fruits and 
vegetables available in elementary schools (referred to in this sec-
tion as the ‘program’). 
‘‘(b) PROGRAM.—A school participating in the program shall 
make free fresh fruits and vegetables available to students through-
out the school day (or at such other times as are considered appro-
priate by the Secretary) in 1 or more areas designated by the 
school. 
‘‘(c) FUNDING TO STATES.— 
‘‘(1) MINIMUM GRANT.—Except as provided in subsection 
(i)(2), the Secretary shall provide to each of the 50 States 
and the District of Columbia an annual grant in an amount 
equal to 1 percent of the funds made available for a year 
to carry out the program. 
‘‘(2) ADDITIONAL FUNDING.—Of the funds remaining after 
grants are made under paragraph (1), the Secretary shall allo-
cate additional funds to each State that is operating a school 
lunch program under section 4 based on the proportion that— 
‘‘(A) the population of the State; bears to 
‘‘(B) the population of the United States. 
‘‘(d) SELECTION OF SCHOOLS.— 
‘‘(1) IN
GENERAL.—Except as provided in paragraph (2) 
of this subsection and section 4304(a)(2) of the Food, Conserva-
tion, and Energy Act of 2008, each year, in selecting schools 
to participate in the program, each State shall— 
‘‘(A) ensure that each school chosen to participate in 
the program is a school— 
‘‘(i) in which not less than 50 percent of the stu-
dents are eligible for free or reduced price meals under 
this Act; and 
‘‘(ii) that submits an application in accordance with 
subparagraph (D); 
‘‘(B) to the maximum extent practicable, give the 
highest priority to schools with the highest proportion of 
children who are eligible for free or reduced price meals 
under this Act; 
‘‘(C) ensure that each school selected is an elementary 
school (as defined in section 9101 of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 7801)); 
‘‘(D) solicit applications from interested schools that 
include— 
‘‘(i) information pertaining to the percentage of 
students enrolled in the school submitting the applica-
tion who are eligible for free or reduced price school 
lunches under this Act; 
‘‘(ii) a certification of support for participation in 
the program signed by the school food manager, the 
school principal, and the district superintendent (or 
equivalent positions, as determined by the school); 
‘‘(iii) a plan for implementation of the program, 
including efforts to integrate activities carried out 
under this section with other efforts to promote sound 
health and nutrition, reduce overweight and obesity, 
or promote physical activity; and
H. R. 6124—240 
‘‘(iv) such other information as may be requested 
by the Secretary; and 
‘‘(E) encourage applicants to submit a plan for 
implementation of the program that includes a partnership 
with 1 or more entities that will provide non-Federal 
resources (including entities representing the fruit and 
vegetable industry). 
‘‘(2) EXCEPTION.—Clause (i) of paragraph (1)(A) shall not 
apply to a State if all schools that meet the requirements 
of that clause have been selected and the State does not have 
a sufficient number of additional schools that meet the require-
ment of that clause. 
‘‘(3) OUTREACH TO LOW-INCOME SCHOOLS.— 
‘‘(A) IN GENERAL.—Prior to making decisions regarding 
school participation in the program, a State agency shall 
inform the schools within the State with the highest propor-
tion of free and reduced price meal eligibility, including 
Native American schools, of the eligibility of the schools 
for the program with respect to priority granted to schools 
with the highest proportion of free and reduced price eligi-
bility under paragraph (1)(B). 
‘‘(B) 
REQUIREMENT.—In 
providing 
information 
to 
schools in accordance with subparagraph (A), a State 
agency shall inform the schools that would likely be chosen 
to participate in the program under paragraph (1)(B). 
‘‘(e) NOTICE OF AVAILABILITY.—If selected to participate in the 
program, a school shall widely publicize within the school the avail-
ability of free fresh fruits and vegetables under the program. 
‘‘(f) PER-STUDENT GRANT.—The per-student grant provided to 
a school under this section shall be— 
‘‘(1) determined by a State agency; and 
‘‘(2) not less than $50, nor more than $75. 
‘‘(g) LIMITATION.—To the maximum extent practicable, each 
State agency shall ensure that in making the fruits and vegetables 
provided under this section available to students, schools offer 
the fruits and vegetables separately from meals otherwise provided 
at the school under this Act or the Child Nutrition Act of 1966 
(42 U.S.C. 1771 et seq.). 
‘‘(h) EVALUATION AND REPORTS.— 
‘‘(1) IN GENERAL.—The Secretary shall conduct an evalua-
tion of the program, including a determination as to whether 
children experienced, as a result of participating in the pro-
gram— 
‘‘(A) increased consumption of fruits and vegetables; 
‘‘(B) other dietary changes, such as decreased consump-
tion of less nutritious foods; and 
‘‘(C) such other outcomes as are considered appropriate 
by the Secretary. 
‘‘(2) REPORT.—Not later than September 30, 2011, the Sec-
retary shall submit to the Committee on Education and Labor 
of the House of Representatives and the Committee on Agri-
culture, Nutrition, and Forestry of the Senate a report that 
describes the results of the evaluation under paragraph (1). 
‘‘(i) FUNDING.— 
‘‘(1) IN GENERAL.—Out of the funds made available under 
subsection (b)(2)(A) of section 14222 of the Food, Conservation,
H. R. 6124—241 
and Energy Act of 2008, the Secretary shall use the following 
amounts to carry out this section: 
‘‘(A) On October 1, 2008, $40,000,000. 
‘‘(B) On July 1, 2009, $65,000,000. 
‘‘(C) On July 1, 2010, $101,000,000. 
‘‘(D) On July 1, 2011, $150,000,000. 
‘‘(E) On July 1, 2012, and each July 1 thereafter, 
the amount made available for the preceding fiscal year, 
as adjusted to reflect changes for the 12-month period 
ending the preceding April 30 in the Consumer Price Index 
for All Urban Consumers published by the Bureau of Labor 
Statistics of the Department of Labor, for items other than 
food. 
‘‘(2) MAINTENANCE
OF
EXISTING
FUNDING.—In allocating 
funding made available under paragraph (1) among the States 
in accordance with subsection (c), the Secretary shall ensure 
that each State that received funding under section 18(f) on 
the day before the date of enactment of the Food, Conservation, 
and Energy Act of 2008 shall continue to receive sufficient 
funding under this section to maintain the caseload level of 
the State under that section as in effect on that date. 
‘‘(3) EVALUATION
FUNDING.—On October 1, 2008, out of 
any funds made available under subsection (b)(2)(A) of section 
14222 of the Food, Conservation, and Energy Act of 2008, 
the Secretary shall use to carry out the evaluation required 
under subsection (h), $3,000,000, to remain available for obliga-
tion until September 30, 2010. 
‘‘(4) RECEIPT
AND
ACCEPTANCE.—The Secretary shall be 
entitled to receive, shall accept, and shall use to carry out 
this section any funds transferred for that purpose, without 
further appropriation. 
‘‘(5) AUTHORIZATION
OF
APPROPRIATIONS.—In addition to 
any other amounts made available to carry out this section, 
there are authorized to be appropriated such sums as are 
necessary to expand the program established under this section. 
‘‘(6) ADMINISTRATIVE COSTS.— 
‘‘(A) IN GENERAL.—Of funds made available to carry 
out this section for a fiscal year, the Secretary may use 
not more than $500,000 for the administrative costs of 
carrying out the program. 
‘‘(B) RESERVATION
OF
FUNDS.—The Secretary shall 
allow each State to reserve such funding as the Secretary 
determines to be necessary to administer the program in 
the State (with adjustments for the size of the State and 
the grant amount), but not to exceed the amount required 
to pay the costs of 1 full-time coordinator for the program 
in the State. 
‘‘(7) REALLOCATION.— 
‘‘(A) AMONG STATES.—The Secretary may reallocate any 
amounts made available to carry out this section that are 
not obligated or expended by a date determined by the 
Secretary. 
‘‘(B) WITHIN STATES.—A State that receives a grant 
under this section may reallocate any amounts made avail-
able under the grant that are not obligated or expended 
by a date determined by the Secretary.’’. 
(2) TRANSITION OF EXISTING SCHOOLS.—
H. R. 6124—242 
(A) EXISTING SECONDARY SCHOOLS.—Section 19(d)(1)(C) 
of the Richard B. Russell National School Lunch Act (as 
amended by paragraph (1)) may be waived by a State 
until July 1, 2010, for each secondary school in the State 
that has been awarded funding under section 18(f) of that 
Act (42 U.S.C. 1769(f)) for the school year beginning July 
1, 2008. 
(B) SCHOOL YEAR BEGINNING JULY 1, 2008.—To facilitate 
transition from the program authorized under section 18(f) 
of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1769(f)) (as in effect on the day before the date 
of enactment of this Act) to the program established under 
section 19 of that Act (as amended by paragraph (1))— 
(i) for the school year beginning July 1, 2008, 
the Secretary may permit any school selected for 
participation under section 18(f) of that Act (42 U.S.C. 
1769(f)) for that school year to continue to participate 
under section 19 of that Act until the end of that 
school year; and 
(ii) funds made available under that Act for fiscal 
year 2009 may be used to support the participation 
of any schools selected to participate in the program 
authorized under section 18(f) of that Act (42 U.S.C. 
1769(f)) (as in effect on the day before the date of 
enactment of this Act). 
(b) CONFORMING AMENDMENTS.—Section 18 of the Richard B. 
Russell National School Lunch Act (42 U.S.C. 1769) is amended— 
(1) by striking subsection (f); and 
(2) by redesignating subsections (g) through (j) as sub-
sections (f) through (i), respectively. 
SEC. 4305. WHOLE GRAIN PRODUCTS. 
(a) PURPOSE.—The purpose of this section is to encourage 
greater awareness and interest in the number and variety of whole 
grain products available to schoolchildren, as recommended by the 
2005 Dietary Guidelines for Americans. 
(b) DEFINITION OF ELIGIBLE WHOLE GRAINS AND WHOLE GRAIN 
PRODUCTS.—In this section, the terms ‘‘whole grains’’ and ‘‘whole 
grain products’’ have the meaning given the terms by the Food 
and Nutrition Service in the HealthierUS School Challenge. 
(c) PURCHASE OF WHOLE GRAINS AND WHOLE GRAIN PROD-
UCTS.—In addition to the commodities delivered under section 6 
of the Richard B. Russell National School Lunch Act (42 U.S.C. 
1755), the Secretary shall purchase whole grains and whole grain 
products for use in— 
(1) the school lunch program established under the Richard 
B. Russell National School Lunch Act (42 U.S.C. 1751 et seq.); 
and 
(2) the school breakfast program established by section 
4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773). 
(d) EVALUATION.—Not later than September 30, 2011, the Sec-
retary shall conduct an evaluation of the activities conducted under 
subsection (c) that includes— 
(1) an evaluation of whether children participating in the 
school lunch and breakfast programs increased their consump-
tion of whole grains;
H. R. 6124—243 
(2) an evaluation of which whole grains and whole grain 
products are most acceptable for use in the school lunch and 
breakfast programs; 
(3) any recommendations of the Secretary regarding the 
integration of whole grain products in the school lunch and 
breakfast programs; and 
(4) an evaluation of any other outcomes determined to 
be appropriate by the Secretary. 
(e) REPORT.—As soon as practicable after the completion of 
the evaluation under subsection (d), the Secretary shall submit 
to the Committee on Agriculture, Nutrition, and Forestry of the 
Senate and the Committee on Education and Labor of the House 
of Representative a report describing the results of the evaluation. 
SEC. 4306. BUY AMERICAN REQUIREMENTS. 
(a) FINDINGS.—The Congress finds the following: 
(1) Federal law requires that commodities and products 
purchased with Federal funds be, to the extent practicable, 
of domestic origin. 
(2) Federal Buy American statutory requirements seek to 
ensure that purchases made with Federal funds benefit 
domestic producers. 
(3) The Richard B. Russell National School Lunch Act 
(42 U.S.C. 1751 et seq.) requires the use of domestic food 
products for all meals served under the program, including 
food products purchased with local funds. 
(b) BUY AMERICAN STATUTORY REQUIREMENTS.—The Depart-
ment of Agriculture should undertake training, guidance, and 
enforcement of the various current Buy American statutory require-
ments and regulations, including those of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1751 et seq.). 
SEC. 4307. SURVEY OF FOODS PURCHASED BY SCHOOL FOOD AUTHORI-
TIES. 
(a) IN GENERAL.—For fiscal year 2009, the Secretary shall 
carry out a nationally representative survey of the foods purchased 
during the most recent school year for which data is available 
by school authorities participating in the school lunch program 
established under the Richard B. Russell National School Lunch 
Act (42 U.S.C. 1751 et seq.). 
(b) REPORT.— 
(1) IN GENERAL.—On completion of the survey, the Sec-
retary shall submit to the Committees on Agriculture and Edu-
cation and Labor of the House of Representatives and the 
Committee on Agriculture, Nutrition, and Forestry of the 
Senate a report that describes the results of the survey. 
(2) INTERIM REQUIREMENT.—If the initial report required 
under paragraph (1) is not submitted to the Committees 
referred to in that paragraph by June 30, 2009, the Secretary 
shall submit to the Committees an interim report that describes 
the relevant survey data, or a sample of such data, available 
to the Secretary as of that date. 
(c) FUNDING.—Of the funds of the Commodity Credit Corpora-
tion, the Secretary shall use to carry out this section not more 
than $3,000,000.
H. R. 6124—244 
Subtitle D—Miscellaneous 
SEC. 4401. BILL EMERSON NATIONAL HUNGER FELLOWS AND MICKEY 
LELAND INTERNATIONAL HUNGER FELLOWS. 
Section 4404 of the Farm Security and Rural Investment Act 
of 2002 (2 U.S.C. 1161) is amended to read as follows: 
‘‘SEC. 4404. BILL EMERSON NATIONAL HUNGER FELLOWS AND MICKEY 
LELAND INTERNATIONAL HUNGER FELLOWS. 
‘‘(a) SHORT TITLE.—This section may be cited as the ‘Bill 
Emerson National Hunger Fellows and Mickey Leland International 
Hunger Fellows Program Act of 2008’. 
‘‘(b) DEFINITIONS.—In this subsection: 
‘‘(1) DIRECTOR.—The term ‘Director’ means the head of 
the Congressional Hunger Center. 
‘‘(2) FELLOW.—The term ‘fellow’ means— 
‘‘(A) a Bill Emerson Hunger Fellow; or 
‘‘(B) Mickey Leland Hunger Fellow. 
‘‘(3) FELLOWSHIP
PROGRAMS.—The term ‘Fellowship Pro-
grams’ means the Bill Emerson National Hunger Fellowship 
Program and the Mickey Leland International Hunger Fellow-
ship Program established under subsection (c)(1). 
‘‘(c) FELLOWSHIP PROGRAMS.— 
‘‘(1) IN GENERAL.—There is established the Bill Emerson 
National Hunger Fellowship Program and the Mickey Leland 
International Hunger Fellowship Program. 
‘‘(2) PURPOSES.— 
‘‘(A) IN GENERAL.—The purposes of the Fellowship Pro-
grams are— 
‘‘(i) to encourage future leaders of the United 
States— 
‘‘(I) to pursue careers in humanitarian and 
public service; 
‘‘(II) to recognize the needs of low-income 
people and hungry people; 
‘‘(III) to provide assistance to people in need; 
and 
‘‘(IV) to seek public policy solutions to the 
challenges of hunger and poverty; 
‘‘(ii) 
to 
provide 
training 
and 
development 
opportunities for such leaders through placement in 
programs operated by appropriate organizations or 
entities; and 
‘‘(iii) to increase awareness of the importance of 
public service. 
‘‘(B) BILL EMERSON HUNGER FELLOWSHIP PROGRAM.— 
The purpose of the Bill Emerson Hunger Fellowship Pro-
gram is to address hunger and poverty in the United States. 
‘‘(C) MICKEY LELAND HUNGER FELLOWSHIP PROGRAM.— 
The purpose of the Mickey Leland Hunger Fellowship Pro-
gram is to address international hunger and other humani-
tarian needs. 
‘‘(3) ADMINISTRATION.— 
‘‘(A) IN GENERAL.—Subject to subparagraph (B), the 
Secretary shall offer to provide a grant to the Congressional 
Hunger Center to administer the Fellowship Programs.
H. R. 6124—245 
‘‘(B) TERMS OF GRANT.—The terms of the grant pro-
vided under subparagraph (A), including the length of the 
grant and provisions for the alteration or termination of 
the grant, shall be determined by the Secretary in accord-
ance with this section. 
‘‘(d) FELLOWSHIPS.— 
‘‘(1) IN GENERAL.—The Director shall make available Bill 
Emerson Hunger Fellowships and Mickey Leland Hunger 
Fellowships in accordance with this subsection. 
‘‘(2) CURRICULUM.— 
‘‘(A) IN GENERAL.—The Fellowship Programs shall pro-
vide experience and training to develop the skills necessary 
to train fellows to carry out the purposes described in 
subsection (c)(2), including— 
‘‘(i) training in direct service programs for the 
hungry and other anti-hunger programs in conjunction 
with community-based organizations through a pro-
gram of field placement; and 
‘‘(ii) providing experience in policy development 
through placement in a governmental entity or non-
governmental, nonprofit, or private sector organization. 
‘‘(B) WORK PLAN.—To carry out subparagraph (A) and 
assist in the evaluation of the fellowships under paragraph 
(6), the Director shall, for each fellow, approve a work 
plan that identifies the target objectives for the fellow 
in the fellowship, including specific duties and responsibil-
ities relating to those objectives. 
‘‘(3) PERIOD OF FELLOWSHIP.— 
‘‘(A) BILL EMERSON HUNGER FELLOW.—A Bill Emerson 
Hunger Fellowship awarded under this section shall be 
for not more than 15 months. 
‘‘(B) MICKEY
LELAND
HUNGER
FELLOW.—A Mickey 
Leland Hunger Fellowship awarded under this section shall 
be for not more than 2 years. 
‘‘(4) SELECTION OF FELLOWS.— 
‘‘(A) IN GENERAL.—Fellowships shall be awarded pursu-
ant to a nationwide competition established by the Director. 
‘‘(B) QUALIFICATIONS.—A successful program applicant 
shall be an individual who has demonstrated— 
‘‘(i) an intent to pursue a career in humanitarian 
services and outstanding potential for such a career; 
‘‘(ii) leadership potential or actual leadership 
experience; 
‘‘(iii) diverse life experience; 
‘‘(iv) proficient writing and speaking skills; 
‘‘(v) an ability to live in poor or diverse commu-
nities; and 
‘‘(vi) such other attributes as are considered to 
be appropriate by the Director. 
‘‘(5) AMOUNT OF AWARD.— 
‘‘(A) IN GENERAL.—A fellow shall receive— 
‘‘(i) a living allowance during the term of the 
Fellowship; and 
‘‘(ii) subject to subparagraph (B), an end-of-service 
award. 
‘‘(B) REQUIREMENT
FOR
SUCCESSFUL
COMPLETION
OF 
FELLOWSHIP.—Each fellow shall be entitled to receive an
H. R. 6124—246 
end-of-service award at an appropriate rate for each month 
of satisfactory service completed, as determined by the 
Director. 
‘‘(C) TERMS
OF
FELLOWSHIP.—A fellow shall not be 
considered an employee of— 
‘‘(i) the Department of Agriculture; 
‘‘(ii) the Congressional Hunger Center; or 
‘‘(iii) a host agency in the field or policy placement 
of the fellow. 
‘‘(D) RECOGNITION OF FELLOWSHIP AWARD.— 
‘‘(i) EMERSON FELLOW.—An individual awarded a 
fellowship from the Bill Emerson Hunger Fellowship 
shall be known as an ‘Emerson Fellow’. 
‘‘(ii) LELAND FELLOW.—An individual awarded a 
fellowship from the Mickey Leland Hunger Fellowship 
shall be known as a ‘Leland Fellow’. 
‘‘(6) EVALUATIONS
AND
AUDITS.—Under terms stipulated 
in the contract entered into under subsection (c)(3), the Director 
shall— 
‘‘(A) conduct periodic evaluations of the Fellowship Pro-
grams; and 
‘‘(B) arrange for annual independent financial audits 
of expenditures under the Fellowship Programs. 
‘‘(e) AUTHORITY.— 
‘‘(1) IN GENERAL.—Subject to paragraph (2), in carrying 
out this section, the Director may solicit, accept, use, and 
dispose of gifts, bequests, or devises of services or property, 
both real and personal, for the purpose of facilitating the work 
of the Fellowship Programs. 
‘‘(2) LIMITATION.—Gifts, bequests, or devises of money and 
proceeds from sales of other property received as gifts, bequests, 
or devises shall be used exclusively for the purposes of the 
Fellowship Programs. 
‘‘(f) REPORT.—The Director shall annually submit to the Sec-
retary of Agriculture, the Committee on Agriculture of the House 
of Representatives, and the Committee on Agriculture, Nutrition, 
and Forestry of the Senate a report that— 
‘‘(1) describes the activities and expenditures of the Fellow-
ship Programs during the preceding fiscal year, including 
expenditures made from funds made available under subsection 
(g); and 
‘‘(2) includes the results of evaluations and audits required 
by subsection (d). 
‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated to the Secretary such sums as are necessary 
to carry out this section, to remain available until expended.’’. 
SEC. 4402. ASSISTANCE FOR COMMUNITY FOOD PROJECTS. 
Section 25 of the Food and Nutrition Act of 2008 (7 U.S.C. 
2034) is amended— 
(1) by striking subsection (a) and inserting the following: 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) COMMUNITY FOOD PROJECT.—In this section, the term 
‘community food project’ means a community-based project 
that— 
‘‘(A) requires a 1-time contribution of Federal assist-
ance to become self-sustaining; and
H. R. 6124—247 
‘‘(B) is designed— 
‘‘(i)(I) to meet the food needs of low-income individ-
uals; 
‘‘(II) to increase the self-reliance of communities 
in providing for the food needs of the communities; 
and 
‘‘(III) to promote comprehensive responses to local 
food, farm, and nutrition issues; or 
‘‘(ii) to meet specific State, local, or neighborhood 
food and agricultural needs, including needs relating 
to— 
‘‘(I) infrastructure improvement and develop-
ment; 
‘‘(II) planning for long-term solutions; or 
‘‘(III) the creation of innovative marketing 
activities that mutually benefit agricultural pro-
ducers and low-income consumers. 
‘‘(2) CENTER.—The term ‘Center’ means the healthy urban 
food enterprise development center established under sub-
section (h). 
‘‘(3) UNDERSERVED
COMMUNITY.—The term ‘underserved 
community’ means a community (including an urban or rural 
community or an Indian tribe) that, as determined by the 
Secretary, has— 
‘‘(A) limited access to affordable, healthy foods, 
including fresh fruits and vegetables; 
‘‘(B) a high incidence of a diet-related disease (including 
obesity) as compared to the national average; 
‘‘(C) a high rate of hunger or food insecurity; or 
‘‘(D) severe or persistent poverty.’’; 
(2) by redesignating subsection (h) as subsection (i); and 
(3) by inserting after subsection (g) the following: 
‘‘(h) 
HEALTHY
URBAN
FOOD
ENTERPRISE
DEVELOPMENT 
CENTER.— 
‘‘(1) DEFINITION OF ELIGIBLE ENTITY.—In this subsection, 
the term ‘eligible entity’ means— 
‘‘(A) a nonprofit organization; 
‘‘(B) a cooperative; 
‘‘(C) a commercial entity; 
‘‘(D) an agricultural producer; 
‘‘(E) an academic institution; 
‘‘(F) an individual; and 
‘‘(G) such other entities as the Secretary may designate. 
‘‘(2) ESTABLISHMENT.—The Secretary shall offer to provide 
a grant to a nonprofit organization to establish and support 
a healthy urban food enterprise development center to carry 
out the purpose described in paragraph (3). 
‘‘(3) PURPOSE.—The purpose of the Center is to increase 
access to healthy affordable foods, including locally produced 
agricultural products, to underserved communities. 
‘‘(4) ACTIVITIES.— 
‘‘(A) TECHNICAL ASSISTANCE AND INFORMATION.—The 
Center shall collect, develop, and provide technical assist-
ance and information to small and medium-sized agricul-
tural producers, food wholesalers and retailers, schools, 
and other individuals and entities regarding best practices 
and the availability of assistance for aggregating, storing,
H. R. 6124—248 
processing, and marketing locally produced agricultural 
products and increasing the availability of such products 
in underserved communities. 
‘‘(B) AUTHORITY TO SUBGRANT.—The Center may pro-
vide subgrants to eligible entities— 
‘‘(i) to carry out feasibility studies to establish 
businesses for the purpose described in paragraph (3); 
and 
‘‘(ii) to establish and otherwise assist enterprises 
that process, distribute, aggregate, store, and market 
healthy affordable foods. 
‘‘(5) PRIORITY.—In providing technical assistance and 
grants under paragraph (4), the Center shall give priority to 
applications that include projects— 
‘‘(A) to benefit underserved communities; and 
‘‘(B) to develop market opportunities for small and 
mid-sized farm and ranch operations. 
‘‘(6) REPORT.—For each fiscal year for which the nonprofit 
organization described in paragraph (2) receives funds, the 
organization shall submit to the Secretary a report describing 
the activities carried out in the preceding fiscal year, 
including— 
‘‘(A) a description of technical assistance provided by 
the Center; 
‘‘(B) the total number and a description of the sub-
grants provided under paragraph (4)(B); 
‘‘(C) a complete listing of cases in which the activities 
of the Center have resulted in increased access to healthy, 
affordable foods, such as fresh fruit and vegetables, particu-
larly for school-aged children and individuals in low-income 
communities; and 
‘‘(D) a determination of whether the activities identified 
in subparagraph (C) are sustained during the years fol-
lowing the initial provision of technical assistance and sub-
grants under this section. 
‘‘(7) COMPETITIVE
AWARD
PROCESS.—The Secretary shall 
use a competitive process to award funds to establish the 
Center. 
‘‘(8) LIMITATION ON ADMINISTRATIVE EXPENSES.—Not more 
than 10 percent of the total amount allocated for this subsection 
in a given fiscal year may be used for administrative expenses. 
‘‘(9) FUNDING.— 
‘‘(A) IN GENERAL.—Out of any funds in the Treasury 
not otherwise appropriated, the Secretary of the Treasury 
shall transfer to the Secretary to carry out this subsection 
$1,000,000 for each of fiscal years 2009 through 2011. 
‘‘(B) ADDITIONAL FUNDING.—There is authorized to be 
appropriated $2,000,000 to carry out this subsection for 
fiscal year 2012.’’. 
SEC. 4403. JOINT NUTRITION MONITORING AND RELATED RESEARCH 
ACTIVITIES. 
The Secretary and the Secretary of Health and Human Services 
shall continue to provide jointly for national nutrition monitoring 
and related research activities carried out as of the date of enact-
ment of this Act—
H. R. 6124—249 
(1) to collect continuous dietary, health, physical activity, 
and diet and health knowledge data on a nationally representa-
tive sample; 
(2) to periodically collect data on special at-risk populations, 
as identified by the Secretaries; 
(3) to distribute information on health, nutrition, the 
environment, and physical activity to the public in a timely 
fashion; 
(4) to analyze new data that becomes available; 
(5) to continuously update food composition tables; and 
(6) to research and develop data collection methods and 
standards. 
SEC. 4404. SECTION 32 FUNDS FOR PURCHASE OF FRUITS, VEGETA-
BLES, AND NUTS TO SUPPORT DOMESTIC NUTRITION 
ASSISTANCE PROGRAMS. 
(a) FUNDING FOR ADDITIONAL PURCHASES OF FRUITS, VEGETA-
BLES, AND NUTS.—In addition to the purchases of fruits, vegetables, 
and nuts required by section 10603 of the Farm Security and 
Rural Investment Act of 2002 (7 U.S.C. 612c–4), the Secretary 
of Agriculture shall purchase fruits, vegetables, and nuts for the 
purpose of providing nutritious foods for use in domestic nutrition 
assistance programs, using, of the funds made available under 
section 32 of the Act of August 24, 1935 (7 U.S.C. 612c), the 
following amounts: 
(1) $190,000,000 for fiscal year 2008. 
(2) $193,000,000 for fiscal year 2009. 
(3) $199,000,000 for fiscal year 2010. 
(4) $203,000,000 for fiscal year 2011. 
(5) $206,000,000 for fiscal year 2012 and each fiscal year 
thereafter. 
(b) FORM OF PURCHASES.—Fruits, vegetables, and nuts may 
be purchased under this section in the form of frozen, canned, 
dried, or fresh fruits, vegetables, and nuts. 
(c) PURCHASE OF FRESH FRUITS AND VEGETABLES FOR DISTRIBU-
TION TO SCHOOLS AND SERVICE INSTITUTIONS.—Section 10603 of 
the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 
612c–4) is amended by striking subsection (b) and inserting the 
following: 
‘‘(b) PURCHASE OF FRESH FRUITS AND VEGETABLES FOR DIS-
TRIBUTION TO SCHOOLS AND SERVICE INSTITUTIONS.—The Secretary 
of Agriculture shall purchase fresh fruits and vegetables for dis-
tribution to schools and service institutions in accordance with 
section 6(a) of the Richard B. Russell National School Lunch Act 
(42 U.S.C. 1755(a)) using, of the amount specified in subsection 
(a), not less than $50,000,000 for each of fiscal years 2008 through 
2012.’’. 
SEC. 4405. HUNGER-FREE COMMUNITIES. 
(a) DEFINITIONS.—In this section: 
(1) ELIGIBLE ENTITY.—The term ‘‘eligible entity’’ means a 
public food program service provider or nonprofit organization, 
including an emergency feeding organization, that has collabo-
rated, or will collaborate, with 1 or more local partner organiza-
tions to achieve at least 1 hunger-free communities goal. 
(2) EMERGENCY FEEDING ORGANIZATION.—The term ‘‘emer-
gency feeding organization’’ has the meaning given the term
H. R. 6124—250 
in section 201A of the Emergency Food Assistance Act of 1983 
(7 U.S.C. 7501). 
(3) HUNGER-FREE COMMUNITIES GOAL.—The term ‘‘hunger- 
free communities goal’’ means any of the 14 goals described 
in the H. Con. Res. 302 (102nd Congress). 
(b) HUNGER-FREE COMMUNITIES COLLABORATIVE GRANTS.— 
(1) PROGRAM.— 
(A) IN GENERAL.—The Secretary shall use not more 
than 50 percent of any funds made available under sub-
section (e) to make grants to eligible entities to pay the 
Federal share of the costs of an activity described in para-
graph (2). 
(B) FEDERAL SHARE.—The Federal share of the cost 
of carrying out an activity under this subsection shall not 
exceed 80 percent. 
(C) NON-FEDERAL SHARE.— 
(i) CALCULATION.—The non-Federal share of the 
cost of an activity under this subsection may be pro-
vided in cash or fairly evaluated in-kind contributions, 
including facilities, equipment, or services. 
(ii) SOURCES.—Any entity may provide the non- 
Federal share of the cost of an activity under this 
subsection through a State government, a local govern-
ment, or a private source. 
(2) USE
OF
FUNDS.—An eligible entity in a community 
shall use a grant received under this subsection for any fiscal 
year for hunger relief activities, including— 
(A) meeting the immediate needs of people who experi-
ence hunger in the community served by the eligible entity 
by— 
(i) distributing food; 
(ii) providing community outreach to assist in 
participation in federally assisted nutrition programs, 
including— 
(I) the school breakfast program established 
by section 4 of the Child Nutrition Act of 1966 
(42 U.S.C. 1773); 
(II) the school lunch program established 
under the Richard B. Russell National School 
Lunch Act (42 U.S.C. 1751 et seq.); 
(III) the summer food service program for chil-
dren established under section 13 of that Act; and 
(IV) other Federal programs that provide food 
for children in child care facilities and homeless 
and older individuals; or 
(iii) improving access to food as part of a com-
prehensive service; and 
(B) developing new resources and strategies to help 
reduce hunger in the community and prevent hunger in 
the future by— 
(i) developing creative food resources, such as 
community gardens, buying clubs, food cooperatives, 
community-owned and operated grocery stores, and 
farmers’ markets; 
(ii) coordinating food services with park and recre-
ation programs and other community-based outlets to 
reduce barriers to access; or
H. R. 6124—251 
(iii) creating nutrition education programs for at- 
risk populations to enhance food-purchasing and food- 
preparation skills and to heighten awareness of the 
connection between diet and health. 
(c) HUNGER-FREE COMMUNITIES INFRASTRUCTURE GRANTS.— 
(1) PROGRAM AUTHORIZED.— 
(A) IN GENERAL.—The Secretary shall use not more 
than 50 percent of any funds made available for a fiscal 
year under subsection (e) to make grants to eligible entities 
to pay the Federal share of the costs of an activity described 
in paragraph (2). 
(B) FEDERAL SHARE.—The Federal share of the cost 
of carrying out an activity under this subsection shall not 
exceed 80 percent. 
(2) APPLICATION.— 
(A) IN GENERAL.—To receive a grant under this sub-
section, an eligible entity shall submit an application at 
such time, in such form, and containing such information 
as the Secretary may prescribe. 
(B) CONTENTS.—Each application submitted under 
subparagraph (A) shall— 
(i) identify any activity described in paragraph 
(3) that the grant will be used to fund; and 
(ii) describe the means by which an activity identi-
fied under clause (i) will reduce hunger in the commu-
nity of the eligible entity. 
(C) PRIORITY.—In making grants under this subsection, 
the Secretary shall give priority to eligible entities that 
demonstrate 2 or more of the following: 
(i) The eligible entity serves a community in which 
the rates of food insecurity, hunger, poverty, or 
unemployment are demonstrably higher than national 
average rates. 
(ii) The eligible entity serves a community that 
has successfully carried out long-term efforts to reduce 
hunger in the community. 
(iii) The eligible entity serves a community that 
provides public support for the efforts of the eligible 
entity. 
(iv) The eligible entity is committed to achieving 
more than 1 hunger-free communities goal. 
(3) USE OF FUNDS.—An eligible entity shall use a grant 
received under this subsection to construct, expand, or repair 
a facility or equipment to support hunger relief efforts in the 
community. 
(d) REPORT.—If funds are made available under subsection 
(e) to carry out this section, not later than September 30, 2012, 
the Secretary shall submit to Congress a report that describes— 
(1) each grant made under this section, including— 
(A) a description of any activity funded; and 
(B) the degree of success of each activity funded in 
achieving hunger free-communities goals; and 
(2) the degree of success of all activities funded under 
this section in achieving domestic hunger goals. 
(e) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated such sums as are necessary to carry out this 
section for each of fiscal years 2008 through 2012.
H. R. 6124—252 
SEC. 4406. REAUTHORIZATION OF FEDERAL FOOD ASSISTANCE PRO-
GRAMS. 
(a) SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM.— 
(1) AUTHORIZATION OF APPROPRIATIONS.—Section 18(a)(1) 
of the Food and Nutrition Act of 2008 (7 U.S.C. 2027(a)(1)) 
is amended in the first sentence by striking ‘‘for each of the 
fiscal years 2003 through 2007’’ and inserting ‘‘for each of 
fiscal years 2008 through 2012’’. 
(2) GRANTS
FOR
SIMPLE
APPLICATION
AND
ELIGIBILITY 
DETERMINATION SYSTEMS AND IMPROVED ACCESS TO BENEFITS.— 
Section 11(t)(1) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2020(t)(1)) is amended by striking ‘‘For each of fiscal years 
2003 through 2007’’ and inserting ‘‘Subject to the availability 
of appropriations under section 18(a), for each fiscal year’’. 
(3) FUNDING OF EMPLOYMENT AND TRAINING PROGRAMS.— 
Section 16(h)(1) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2025(h)(1)) is amended— 
(A) in subparagraph (A), by striking ‘‘the amount of— 
’’ and all that follows through the end of the subparagraph 
and inserting ‘‘, $90,000,000 for each fiscal year.’’; and 
(B) in subparagraph (E)(i), by striking ‘‘for each of 
fiscal years 2002 through 2007’’ and inserting ‘‘for each 
fiscal year’’. 
(4) REDUCTIONS IN PAYMENTS FOR ADMINISTRATIVE COSTS.— 
Section 16(k)(3) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2025(k)(3)) is amended— 
(A) in the first sentence of subparagraph (A), by 
striking ‘‘effective for each of fiscal years 1999 through 
2007,’’; and 
(B) in subparagraph (B)(ii), by striking ‘‘through fiscal 
year 2007’’. 
(5) CASH PAYMENT PILOT PROJECTS.—Section 17(b)(1)(B)(vi) 
of 
the 
Food 
and 
Nutrition 
Act 
of 
2008 
(7 
U.S.C. 
2026(b)(1)(B)(vi)) is amended— 
(A) by striking ‘‘Any pilot’’ and inserting ‘‘Subject to 
the availability of appropriations under section 18(a), any 
pilot’’; and 
(B) by striking ‘‘through October 1, 2007,’’. 
(6) CONSOLIDATED BLOCK GRANTS FOR PUERTO RICO AND 
AMERICAN SAMOA.—Section 19(a)(2)(A)(ii) of the Food and Nutri-
tion Act of 2008 (7 U.S.C. 2028(a)(2)(A)(ii)) is amended by 
striking ‘‘for each of fiscal years 2004 through 2007’’ and 
inserting ‘‘subject to the availability of appropriations under 
section 18(a), for each fiscal year thereafter’’. 
(7) ASSISTANCE FOR COMMUNITY FOOD PROJECTS.—Section 
25 of the Food and Nutrition Act of 2008 (7 U.S.C. 2034) 
is amended— 
(A) in subsection (b)(2)(B), by striking ‘‘for each of 
fiscal years 1997 through 2007’’ and inserting ‘‘for fiscal 
year 2008 and each fiscal year thereafter’’; and 
(B) in subsection (i)(4) (as redesignated by section 
4402), by striking ‘‘of fiscal years 2003 through 2007’’ and 
inserting ‘‘fiscal year thereafter’’. 
(b) COMMODITY DISTRIBUTION.— 
(1) EMERGENCY FOOD ASSISTANCE.—Section 204(a)(1) of the 
Emergency Food Assistance Act of 1983 (7 U.S.C. 7508(a)(1)) 
is amended in the first sentence by striking ‘‘for each of the
H. R. 6124—253 
fiscal years 2003 through 2007’’ and inserting ‘‘for fiscal year 
2008 and each fiscal year thereafter’’. 
(2) COMMODITY
DISTRIBUTION
PROGRAM.—Section 4(a) of 
the Agriculture and Consumer Protection Act of 1973 (7 U.S.C. 
612c note; Public Law 93–86) is amended in the first sentence 
by striking ‘‘years 1991 through 2007’’ and inserting ‘‘years 
2008 through 2012’’. 
(3) COMMODITY SUPPLEMENTAL FOOD PROGRAM.—Section 5 
of the Agriculture and Consumer Protection Act of 1973 (7 
U.S.C. 612c note; Public Law 93–86) is amended— 
(A) in subsection (a)— 
(i) in paragraph (1), by striking ‘‘each of fiscal 
years 2003 through 2007’’ and inserting ‘‘each of fiscal 
years 2008 through 2012’’; and 
(ii) in paragraph (2)(B), by striking the subpara-
graph designation and heading and all that follows 
through ‘‘2007’’ and inserting the following: 
‘‘(B) SUBSEQUENT
FISCAL
YEARS.—For each of fiscal 
years 2004 through 2012’’; and 
(B) in subsection (d)(2), by striking ‘‘each of the fiscal 
years 1991 through 2007’’ and inserting ‘‘each of fiscal 
years 2008 through 2012’’. 
(4) DISTRIBUTION
OF
SURPLUS
COMMODITIES
TO
SPECIAL 
NUTRITION PROJECTS.—Section 1114(a)(2)(A) of the Agriculture 
and Food Act of 1981 (7 U.S.C. 1431e(2)(A)) is amended in 
the first sentence by striking ‘‘Effective through September 
30, 2007’’ and inserting ‘‘For each of fiscal years 2008 through 
2012’’. 
(c) FARM SECURITY AND RURAL INVESTMENT.— 
(1) SENIORS FARMERS’ MARKET NUTRITION PROGRAM.—Sec-
tion 4402 of the Farm Security and Rural Investment Act 
of 2002 (7 U.S.C. 3007) is amended by striking by striking 
subsection (a) and inserting the following: 
‘‘(a) FUNDING.—Of the funds of the Commodity Credit Corpora-
tion, the Secretary of Agriculture shall use to carry out and expand 
the seniors farmers’ market nutrition program $20,600,000 for each 
of fiscal years 2008 through 2012.’’. 
(2) NUTRITION INFORMATION AND AWARENESS PILOT PRO-
GRAM.—Section 4403(f) of the Farm Security and Rural Invest-
ment Act of 2002 (7 U.S.C. 3171 note; Public Law 107–171) 
is amended by striking ‘‘2007’’ and inserting ‘‘2012’’. 
SEC. 4407. EFFECTIVE AND IMPLEMENTATION DATES. 
Except as otherwise provided in this title, this title and the 
amendments made by this title take effect on October 1, 2008. 
TITLE V—CREDIT 
Subtitle A—Farm Ownership Loans 
SEC. 5001. DIRECT LOANS. 
Section 302 of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1922) is amended— 
(1) by striking the section designation and heading and 
all that follows through ‘‘(a) The Secretary is authorized to’’ 
and inserting the following:
H. R. 6124—254 
‘‘SEC. 302. PERSONS ELIGIBLE FOR REAL ESTATE LOANS. 
‘‘(a) IN GENERAL.—The Secretary may’’; and 
(2) in subsection (a)(2), by inserting ‘‘, taking into consider-
ation all farming experience of the applicant, without regard 
to any lapse between farming experiences’’ after ‘‘farming oper-
ations’’. 
SEC. 5002. CONSERVATION LOAN AND LOAN GUARANTEE PROGRAM. 
Section 304 of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1924) is amended to read as follows: 
‘‘SEC. 304. CONSERVATION LOAN AND LOAN GUARANTEE PROGRAM. 
‘‘(a) IN GENERAL.—The Secretary may make or guarantee quali-
fied conservation loans to eligible borrowers under this section. 
‘‘(b) DEFINITIONS.—In this section: 
‘‘(1) QUALIFIED CONSERVATION LOAN.—The term ‘qualified 
conservation loan’ means a loan, the proceeds of which are 
used to cover the costs to the borrower of carrying out a 
qualified conservation project. 
‘‘(2) QUALIFIED CONSERVATION PROJECT.—The term ‘quali-
fied conservation project’ means conservation measures that 
address provisions of a conservation plan of the eligible bor-
rower. 
‘‘(3) CONSERVATION
PLAN.—The term ‘conservation plan’ 
means a plan, approved by the Secretary, that, for a farming 
or ranching operation, identifies the conservation activities that 
will be addressed with loan funds provided under this section, 
including— 
‘‘(A) the installation of conservation structures to 
address soil, water, and related resources; 
‘‘(B) the establishment of forest cover for sustained 
yield timber management, erosion control, or shelter belt 
purposes; 
‘‘(C) the installation of water conservation measures; 
‘‘(D) the installation of waste management systems; 
‘‘(E) the establishment or improvement of permanent 
pasture; 
‘‘(F) compliance with section 1212 of the Food Security 
Act of 1985; and 
‘‘(G) other purposes consistent with the plan, including 
the adoption of any other emerging or existing conservation 
practices, techniques, or technologies approved by the Sec-
retary. 
‘‘(c) ELIGIBILITY.— 
‘‘(1) IN GENERAL.—The Secretary may make or guarantee 
loans to farmers or ranchers in the United States, farm coopera-
tives, private domestic corporations, partnerships, joint oper-
ations, trusts, or limited liability companies that are controlled 
by farmers or ranchers and engaged primarily and directly 
in agricultural production in the United States. 
‘‘(2) REQUIREMENTS.—To be eligible for a loan under this 
section, applicants shall meet the requirements in paragraphs 
(1) and (2) of section 302(a). 
‘‘(d) PRIORITY.—In making or guaranteeing loans under this 
section, the Secretary shall give priority to— 
‘‘(1) qualified beginning farmers or ranchers and socially 
disadvantaged farmers or ranchers;
H. R. 6124—255 
‘‘(2) owners or tenants who use the loans to convert to 
sustainable or organic agricultural production systems; and 
‘‘(3) producers who use the loans to build conservation 
structures or establish conservation practices to comply with 
section 1212 of the Food Security Act of 1985. 
‘‘(e) LIMITATIONS APPLICABLE TO LOAN GUARANTEES.—The por-
tion of a loan that the Secretary may guarantee under this section 
shall be 75 percent of the principal amount of the loan. 
‘‘(f) ADMINISTRATIVE PROVISIONS.—The Secretary shall ensure, 
to the maximum extent practicable, that loans made or guaranteed 
under this section are distributed across diverse geographic regions. 
‘‘(g) CREDIT ELIGIBILITY.—The provisions of paragraphs (1) and 
(3) of section 333 shall not apply to loans made or guaranteed 
under this section. 
‘‘(h) AUTHORIZATION
OF APPROPRIATIONS.—For each of fiscal 
years 2008 through 2012, there are authorized to be appropriated 
to the Secretary such funds as are necessary to carry out this 
section.’’. 
SEC. 5003. LIMITATIONS ON AMOUNT OF FARM OWNERSHIP LOANS. 
Section 305(a)(2) of the Consolidated Farm and Rural Develop-
ment Act (7 U.S.C. 1925(a)(2)) is amended by striking ‘‘$200,000’’ 
and inserting ‘‘$300,000’’. 
SEC. 5004. DOWN PAYMENT LOAN PROGRAM. 
Section 310E of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1935) is amended— 
(1) in subsection (a)(1), by striking ‘‘and ranchers’’ and 
inserting ‘‘or ranchers and socially disadvantaged farmers or 
ranchers’’; 
(2) in subsection (b)— 
(A) by striking paragraph (1) and inserting the fol-
lowing; 
‘‘(1) PRINCIPAL.—Each loan made under this section shall 
be in an amount that does not exceed 45 percent of the least 
of— 
‘‘(A) the purchase price of the farm or ranch to be 
acquired; 
‘‘(B) the appraised value of the farm or ranch to be 
acquired; or 
‘‘(C) $500,000. 
‘‘(2) INTEREST RATE.—The interest rate on any loan made 
by the Secretary under this section shall be a rate equal to 
the greater of— 
‘‘(A) the difference obtained by subtracting 4 percent 
from the interest rate for farm ownership loans under 
this subtitle; or 
‘‘(B) 1.5 percent.’’; and 
(B) in paragraph (3), by striking ‘‘15’’ and inserting 
‘‘20’’; 
(3) in subsection (c)— 
(A) in paragraph (1), by striking ‘‘10’’ and inserting 
‘‘5’’; 
(B) by striking paragraph (2) and redesignating para-
graph (3) as paragraph (2); and 
(C) in paragraph (2)(B) (as so redesignated), by striking 
‘‘15-year’’ and inserting ‘‘20-year’’; 
(4) in subsection (d)—
H. R. 6124—256 
(A) in paragraph (3)— 
(i) by inserting ‘‘and socially disadvantaged 
farmers or ranchers’’ after ‘‘ranchers’’; and 
(ii) by striking ‘‘and’’ at the end; 
(B) in paragraph (4), by striking ‘‘and ranchers.’’ and 
inserting ‘‘ or ranchers or socially disadvantaged farmers 
or ranchers; and’’; and 
(C) by adding at the end the following: 
‘‘(5) establish annual performance goals to promote the 
use of the down payment loan program and other joint financing 
arrangements as the preferred choice for direct real estate 
loans made by any lender to a qualified beginning farmer 
or rancher or socially disadvantaged farmer or rancher.’’; and 
(5) by adding at the end the following: 
‘‘(e) SOCIALLY DISADVANTAGED FARMER OR RANCHER DEFINED.— 
In this section, the term ‘socially disadvantaged farmer or rancher’ 
has the meaning given that term in section 355(e)(2).’’. 
SEC. 5005. BEGINNING FARMER OR RANCHER AND SOCIALLY DIS-
ADVANTAGED FARMER OR RANCHER CONTRACT LAND 
SALES PROGRAM. 
Section 310F of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1936) is amended to read as follows: 
‘‘SEC. 310F. BEGINNING FARMER OR RANCHER AND SOCIALLY DIS-
ADVANTAGED FARMER OR RANCHER CONTRACT LAND 
SALES PROGRAM. 
‘‘(a) IN GENERAL.—The Secretary shall, in accordance with this 
section, guarantee a loan made by a private seller of a farm or 
ranch to a qualified beginning farmer or rancher or socially dis-
advantaged farmer or rancher (as defined in section 355(e)(2)) on 
a contract land sales basis. 
‘‘(b) ELIGIBILITY.—In order to be eligible for a loan guarantee 
under subsection (a)— 
‘‘(1) the qualified beginning farmer or rancher or socially 
disadvantaged farmer or rancher shall— 
‘‘(A) on the date the contract land sale that is subject 
of the loan is complete, own and operate the farm or 
ranch that is the subject of the contract land sale; 
‘‘(B) have a credit history that— 
‘‘(i) includes a record of satisfactory debt repay-
ment, as determined by the Secretary; and 
‘‘(ii) is acceptable to the Secretary; and 
‘‘(C) demonstrate to the Secretary that the farmer or 
rancher, as the case may be, is unable to obtain sufficient 
credit without a guarantee to finance any actual need 
of the farmer or rancher, as the case may be, at a reason-
able rate or term; and 
‘‘(2) the loan shall meet applicable underwriting criteria, 
as determined by the Secretary. 
‘‘(c) LIMITATIONS.— 
‘‘(1) DOWN PAYMENT.—The Secretary shall not provide a 
loan guarantee under subsection (a) if the contribution of the 
qualified beginning farmer or rancher or socially disadvantaged 
farmer or rancher to the down payment for the farm or ranch 
that is the subject of the contract land sale would be less 
than 5 percent of the purchase price of the farm or ranch.
H. R. 6124—257 
‘‘(2) MAXIMUM PURCHASE PRICE.—The Secretary shall not 
provide a loan guarantee under subsection (a) if the purchase 
price or the appraisal value of the farm or ranch that is the 
subject of the contract land sale is greater than $500,000. 
‘‘(d) PERIOD OF GUARANTEE.—The period during which a loan 
guarantee under this section is in effect shall be the 10-year period 
beginning with the date the guarantee is provided. 
‘‘(e) GUARANTEE PLAN.— 
‘‘(1) SELECTION OF PLAN.—A private seller of a farm or 
ranch who makes a loan that is guaranteed by the Secretary 
under subsection (a) may select— 
‘‘(A) a prompt payment guarantee plan, which shall 
cover— 
‘‘(i) 3 amortized annual installments; or 
‘‘(ii) an amount equal to 3 annual installments 
(including an amount equal to the total cost of any 
tax and insurance incurred during the period covered 
by the annual installments); or 
‘‘(B) a standard guarantee plan, which shall cover an 
amount equal to 90 percent of the outstanding principal 
of the loan. 
‘‘(2) ELIGIBLITY FOR STANDARD GUARANTEE PLAN.—In order 
for a private seller to be eligible for a standard guarantee 
plan referred to in paragraph (1)(B), the private seller shall— 
‘‘(A) secure a commercial lending institution or similar 
entity, as determined by the Secretary, to serve as an 
escrow agent; or 
‘‘(B) in cooperation with the farmer or rancher, use 
an appropriate alternate arrangement, as determined by 
the Secretary. 
‘‘(f) TRANSITION FROM PILOT PROGRAM.— 
‘‘(1) IN
GENERAL.—The Secretary may phase-in the 
implementation of the changes to the Beginning Farmer and 
Rancher and Socially Disadvantaged Farmer or Rancher Con-
tract Land Sales Program provided for in this section. 
‘‘(2) LIMITATION.—All changes to the Beginning Farmer 
and Rancher and Socially Disadvantaged Farmer or Rancher 
Contract Land Sales Program must be implemented for the 
2011 Fiscal Year.’’. 
Subtitle B—Operating Loans 
SEC. 5101. FARMING EXPERIENCE AS ELIGIBILITY REQUIREMENT. 
Section 311 of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1941) is amended— 
(1) by striking the section designation and all that follows 
through ‘‘(a) The Secretary is authorized to’’ and inserting 
the following: 
‘‘SEC. 311. PERSONS ELIGIBLE FOR LOANS. 
‘‘(a) IN GENERAL.—The Secretary may’’; 
(2) in subsection (a)(2), by inserting ‘‘, taking into consider-
ation all farming experience of the applicant, without regard 
to any lapse between farming experiences’’ after ‘‘farming oper-
ations’’.
H. R. 6124—258 
SEC. 5102. LIMITATIONS ON AMOUNT OF OPERATING LOANS. 
Section 313(a)(1) of the Consolidated Farm and Rural Develop-
ment Act (7 U.S.C. 1943(a)(1)) is amended by striking ‘‘$200,000’’ 
and inserting ‘‘$300,000’’. 
SEC. 5103. SUSPENSION OF LIMITATION ON PERIOD FOR WHICH BOR-
ROWERS ARE ELIGIBLE FOR GUARANTEED ASSISTANCE. 
Section 5102 of the Farm Security And Rural Investment Act 
of 2002 (7 U.S.C. 1949 note; Public Law 107–171) is amended 
by striking ‘‘September 30, 2007’’ and inserting ‘‘December 31, 
2010’’. 
Subtitle C—Emergency Loans 
SEC. 5201. ELIGIBILITY OF EQUINE FARMERS AND RANCHERS FOR 
EMERGENCY LOANS. 
Section 321(a) of the Consolidated Farm and Rural Develop-
ment Act (7 U.S.C. 1961(a)) is amended— 
(1) in paragraph (1), by striking ‘‘farmers, ranchers’’ and 
inserting ‘‘farmers or ranchers (including equine farmers or 
ranchers)’’; and 
(2) in paragraph (2)(A), by striking ‘‘farming, ranching,’’ 
and inserting ‘‘farming or ranching (including equine farming 
or ranching)’’. 
Subtitle D—Administrative Provisions 
SEC. 5301. BEGINNING FARMER AND RANCHER INDIVIDUAL DEVELOP-
MENT ACCOUNTS PILOT PROGRAM. 
Subtitle D of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1981–2008r) is amended by inserting after section 
333A the following: 
‘‘SEC. 
333B. 
BEGINNING 
FARMER 
AND 
RANCHER 
INDIVIDUAL 
DEVELOPMENT ACCOUNTS PILOT PROGRAM. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) DEMONSTRATION PROGRAM.—The term ‘demonstration 
program’ means a demonstration program carried out by a 
qualified entity under the pilot program established in sub-
section (b)(1). 
‘‘(2) ELIGIBLE PARTICIPANT.—The term ‘eligible participant’ 
means a qualified beginning farmer or rancher that— 
‘‘(A) lacks significant financial resources or assets; and 
‘‘(B) has an income that is less than— 
‘‘(i) 80 percent of the median income of the State 
in which the farmer or rancher resides; or 
‘‘(ii) 200 percent of the most recent annual Federal 
Poverty Income Guidelines published by the Depart-
ment of Health and Human Services for the State. 
‘‘(3) INDIVIDUAL DEVELOPMENT ACCOUNT.—The term ‘indi-
vidual development account’ means a savings account described 
in subsection (b)(4)(A). 
‘‘(4) QUALIFIED ENTITY.— 
‘‘(A) IN GENERAL.—The term ‘qualified entity’ means— 
‘‘(i) 1 or more organizations—
H. R. 6124—259 
‘‘(I) described in section 501(c)(3) of the 
Internal Revenue Code of 1986; and 
‘‘(II) exempt from taxation under section 501(a) 
of such Code; or 
‘‘(ii) a State, local, or tribal government submitting 
an application jointly with an organization described 
in clause (i). 
‘‘(B) 
NO
PROHIBITION
ON
COLLABORATION.—An 
organization described in subparagraph (A)(i) may collabo-
rate with a financial institution or for-profit community 
development corporation to carry out the purposes of this 
section. 
‘‘(b) PILOT PROGRAM.— 
‘‘(1) IN
GENERAL.—The Secretary shall establish a pilot 
program to be known as the ‘New Farmer Individual Develop-
ment Accounts Pilot Program’ under which the Secretary shall 
work through qualified entities to establish demonstration pro-
grams— 
‘‘(A) of at least 5 years in duration; and 
‘‘(B) in at least 15 States. 
‘‘(2) COORDINATION.—The Secretary shall operate the pilot 
program through, and in coordination with the farm loan pro-
grams of, the Farm Service Agency. 
‘‘(3) RESERVE FUNDS.— 
‘‘(A) IN GENERAL.—A qualified entity carrying out a 
demonstration program under this section shall establish 
a reserve fund consisting of a non-Federal match of 50 
percent of the total amount of the grant awarded to the 
demonstration program under this section. 
‘‘(B) FEDERAL FUNDS.—After the qualified entity has 
deposited the non-Federal matching funds described in 
subparagraph (A) in the reserve fund, the Secretary shall 
provide the total amount of the grant awarded under this 
section to the demonstration program for deposit in the 
reserve fund. 
‘‘(C) USE OF FUNDS.—Of the funds deposited under 
subparagraph (B) in the reserve fund established for a 
demonstration program, the qualified entity carrying out 
the demonstration program— 
‘‘(i) may use up to 10 percent for administrative 
expenses; and 
‘‘(ii) shall use the remainder in making matching 
awards described in paragraph (4)(B)(ii)(I). 
‘‘(D) INTEREST.—Any interest earned on amounts in 
a reserve fund established under subparagraph (A) may 
be used by the qualified entity as additional matching 
funds for, or to administer, the demonstration program. 
‘‘(E) GUIDANCE.—The Secretary shall issue guidance 
regarding the investment requirements of reserve funds 
established under this paragraph. 
‘‘(F) REVERSION.—On the date on which all funds 
remaining in any individual development account estab-
lished by a qualified entity have reverted under paragraph 
(5)(B)(ii) to the reserve fund established by the qualified 
entity, there shall revert to the Treasury of the United 
States a percentage of the amount (if any) in the reserve 
fund equal to—
H. R. 6124—260 
‘‘(i) the amount of Federal funds deposited in the 
reserve fund under subparagraph (B) that were not 
used for administrative expenses; divided by 
‘‘(ii) the total amount of funds deposited in the 
reserve fund. 
‘‘(4) INDIVIDUAL DEVELOPMENT ACCOUNTS.— 
‘‘(A) IN GENERAL.—A qualified entity receiving a grant 
under this section shall establish and administer individual 
development accounts for eligible participants. 
‘‘(B) CONTRACT
REQUIREMENTS.—To be eligible to 
receive funds under this section from a qualified entity, 
an eligible participant shall enter into a contract with 
only 1 qualified entity under which— 
‘‘(i) the eligible participant agrees— 
‘‘(I) to deposit a certain amount of funds of 
the eligible participant in a personal savings 
account, as prescribed by the contractual agree-
ment between the eligible participant and the 
qualified entity; 
‘‘(II) to use the funds described in subclause 
(I) only for 1 or more eligible expenditures 
described in paragraph (5)(A); and 
‘‘(III) to complete financial training; and 
‘‘(ii) the qualified entity agrees— 
‘‘(I) to deposit, not later than 1 month after 
an amount is deposited pursuant to clause (i)(I), 
at least a 100-percent, and up to a 200-percent, 
match of that amount into the individual develop-
ment account established for the eligible partici-
pant; and 
‘‘(II) with uses of funds proposed by the eligible 
participant. 
‘‘(C) LIMITATION.— 
‘‘(i) IN GENERAL.—A qualified entity administering 
a demonstration program under this section may pro-
vide not more than $6,000 for each fiscal year in 
matching funds to the individual development account 
established by the qualified entity for an eligible 
participant. 
‘‘(ii) TREATMENT OF AMOUNT.—An amount provided 
under clause (i) shall not be considered to be a gift 
or loan for mortgage purposes. 
‘‘(5) ELIGIBLE EXPENDITURES.— 
‘‘(A) IN GENERAL.—An eligible expenditure described 
in this subparagraph is an expenditure— 
‘‘(i) to purchase farmland or make a down payment 
on an accepted purchase offer for farmland; 
‘‘(ii) to make mortgage payments on farmland pur-
chased pursuant to clause (i), for up to 180 days after 
the date of the purchase; 
‘‘(iii) to purchase breeding stock, fruit or nut trees, 
or trees to harvest for timber; and 
‘‘(iv) for other similar expenditures, as determined 
by the Secretary. 
‘‘(B) TIMING.— 
‘‘(i) IN
GENERAL.—An eligible participant may 
make an eligible expenditure at any time during the
H. R. 6124—261 
2-year period beginning on the date on which the last 
matching 
funds 
are 
provided 
under 
paragraph 
(4)(B)(ii)(I) to the individual development account 
established for the eligible participant. 
‘‘(ii) UNEXPENDED FUNDS.—At the end of the period 
described in clause (i), any funds remaining in an 
individual development account established for an 
eligible participant shall revert to the reserve fund 
of the demonstration program under which the account 
was established. 
‘‘(c) APPLICATIONS.— 
‘‘(1) IN GENERAL.—A qualified entity that seeks to carry 
out a demonstration program under this section may submit 
to the Secretary an application at such time, in such form, 
and containing such information as the Secretary may pre-
scribe. 
‘‘(2) CRITERIA.—In considering whether to approve an 
application to carry out a demonstration program under this 
section, the Secretary shall assess— 
‘‘(A) the degree to which the demonstration program 
described in the application is likely to aid eligible partici-
pants in successfully pursuing new farming opportunities; 
‘‘(B) the experience and ability of the qualified entity 
to responsibly administer the demonstration program; 
‘‘(C) the experience and ability of the qualified entity 
in recruiting, educating, and assisting eligible participants 
to increase economic independence and pursue or advance 
farming opportunities; 
‘‘(D) the aggregate amount of direct funds from non- 
Federal public sector and private sources that are formally 
committed to the demonstration program as matching con-
tributions; 
‘‘(E) the adequacy of the plan of the qualified entity 
to provide information relevant to an evaluation of the 
demonstration program; and 
‘‘(F) such other factors as the Secretary considers to 
be appropriate. 
‘‘(3) PREFERENCES.—In considering an application to con-
duct a demonstration program under this section, the Secretary 
shall give preference to an application from a qualified entity 
that demonstrates— 
‘‘(A) a track record of serving clients targeted by the 
program, including, as appropriate, socially disadvantaged 
farmers or ranchers (as defined in section 355(e)(2)); and 
‘‘(B) expertise in dealing with financial management 
aspects of farming. 
‘‘(4) APPROVAL.—Not later than 1 year after the date of 
enactment of this section, in accordance with this section, the 
Secretary shall, on a competitive basis, approve such applica-
tions to conduct demonstration programs as the Secretary con-
siders appropriate. 
‘‘(5) TERM OF AUTHORITY.—If the Secretary approves an 
application to carry out a demonstration program, the Secretary 
shall authorize the applicant to carry out the project for a 
period of 5 years, plus an additional 2 years to make eligible 
expenditures in accordance with subsection (b)(5)(B). 
‘‘(d) GRANT AUTHORITY.—
H. R. 6124—262 
‘‘(1) IN GENERAL.—The Secretary shall make a grant to 
a qualified entity authorized to carry out a demonstration pro-
gram under this section. 
‘‘(2) MAXIMUM AMOUNT OF GRANTS.—The aggregate amount 
of grant funds provided to a demonstration program carried 
out under this section shall not exceed $250,000. 
‘‘(3) TIMING OF GRANT PAYMENTS.—The Secretary shall pay 
the amounts awarded under a grant made under this section— 
‘‘(A) on the awarding of the grant; or 
‘‘(B) pursuant to such payment plan as the qualified 
entity may specify. 
‘‘(e) REPORTS.— 
‘‘(1) ANNUAL PROGRESS REPORTS.— 
‘‘(A) IN GENERAL.—Not later than 60 days after the 
end of the calendar year in which the Secretary authorizes 
a qualified entity to carry out a demonstration program 
under this section, and annually thereafter until the conclu-
sion of the demonstration program, the qualified entity 
shall prepare an annual report that includes, for the period 
covered by the report— 
‘‘(i) an evaluation of the progress of the demonstra-
tion program; 
‘‘(ii) information about the demonstration program, 
including the eligible participants and the individual 
development accounts that have been established; and 
‘‘(iii) such other information as the Secretary may 
require. 
‘‘(B) SUBMISSION OF REPORTS.—A qualified entity shall 
submit each report required under subparagraph (A) to 
the Secretary. 
‘‘(2) REPORTS BY THE SECRETARY.—Not later than 1 year 
after the date on which all demonstration programs under 
this section are concluded, the Secretary shall submit to Con-
gress a final report that describes the results and findings 
of all reports and evaluations carried out under this section. 
‘‘(f) ANNUAL REVIEW.—The Secretary may conduct an annual 
review of the financial records of a qualified entity— 
‘‘(1) to assess the financial soundness of the qualified entity; 
and 
‘‘(2) to determine the use of grant funds made available 
to the qualified entity under this section. 
‘‘(g) REGULATIONS.—In carrying out this section, the Secretary 
may promulgate regulations to ensure that the program includes 
provisions for— 
‘‘(1) the termination of demonstration programs; 
‘‘(2) control of the reserve funds in the case of such a 
termination; 
‘‘(3) transfer of demonstration programs to other qualified 
entities; and 
‘‘(4) remissions from a reserve fund to the Secretary in 
a case in which a demonstration program is terminated without 
transfer to a new qualified entity. 
‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 
to be appropriated to carry out this section $5,000,000 for each 
of fiscal years 2008 through 2012.’’.
H. R. 6124—263 
SEC. 5302. INVENTORY SALES PREFERENCES; LOAN FUND SET-ASIDES. 
(a) INVENTORY SALES PREFERENCES.—Section 335(c) of the 
Consolidated Farm and Rural Development Act (7 U.S.C. 1985(c)) 
is amended— 
(1) in paragraph (1)— 
(A) in subparagraph (B)— 
(i) in the subparagraph heading, by inserting ‘‘; 
SOCIALLY DISADVANTAGED FARMER OR RANCHER’’ after 
‘‘OR RANCHER’’; 
(ii) in clause (i), by inserting ‘‘ or a socially dis-
advantaged farmer or rancher’’ after ‘‘or rancher’’; 
(iii) in clause (ii), by inserting ‘‘or socially disadvan-
taged farmer or rancher’’ after ‘‘or rancher’’; 
(iv) in clause (iii), by inserting ‘‘or a socially dis-
advantaged farmer or rancher’’ after ‘‘or rancher’’; and 
(v) in clause (iv), by striking ‘‘and ranchers’’ and 
inserting ‘‘or ranchers and socially disadvantaged 
farmers or ranchers’’; and 
(B) in subparagraph (C), by inserting ‘‘or a socially 
disadvantaged farmer or rancher’’ after ‘‘or rancher’’; 
(2) in paragraph (5)(B)— 
(A) in clause (i)— 
(i) in the clause heading, by inserting ‘‘; SOCIALLY 
DISADVANTAGED
FARMER
OR
RANCHER’’ after ‘‘OR 
RANCHER’’; 
(ii) by inserting ‘‘or a socially disadvantaged farmer 
or rancher’’ after ‘‘a beginning farmer or rancher’’; and 
(iii) by inserting ‘‘or the socially disadvantaged 
farmer or rancher’’ after ‘‘the beginning farmer or 
rancher’’; and 
(B) in clause (ii)— 
(i) in the matter preceding subclause (I), by 
inserting ‘‘or a socially disadvantaged farmer or 
rancher’’ after ‘‘or rancher’’; and 
(ii) in subclause (II), by inserting ‘‘or the socially 
disadvantaged farmer or rancher’’ after ‘‘or rancher’’; 
and 
(3) in paragraph (6)— 
(A) in subparagraph (A), by inserting ‘‘or a socially 
disadvantaged farmer or rancher’’ after ‘‘or rancher’’; and 
(B) in subparagraph (C)— 
(i) in clause (i)(I), by striking ‘‘and ranchers’’ and 
inserting ‘‘or ranchers and socially disadvantaged 
farmers or ranchers’’; and 
(ii) in clause (ii), by inserting ‘‘or socially disadvan-
taged farmers or ranchers’’ after ‘‘or ranchers’’. 
(b) LOAN FUND SET-ASIDES.—Section 346(b)(2) of such Act (7 
U.S.C. 1994(b)(2)) is amended— 
(1) in subparagraph (A)— 
(A) in clause (i)— 
(i) in subclause (I), by striking ‘‘70 percent’’ and 
inserting ‘‘an amount that is not less than 75 percent 
of the total amount’’; and 
(ii) in subclause (II)— 
(I) in the subclause heading, by inserting ‘‘; 
JOINT FINANCING ARRANGEMENTS’’ after ‘‘PAYMENT 
LOANS’’;
H. R. 6124—264 
(II) by striking ‘‘60 percent’’ and inserting ‘‘an 
amount not less than 2⁄3 of the amount’’; and 
(III) by inserting ‘‘and joint financing arrange-
ments under section 307(a)(3)(D)’’ after ‘‘section 
310E’’; and 
(B) in clause (ii)(III), by striking ‘‘2003 through 2007, 
35 percent’’ and inserting ‘‘2008 through 2012, an amount 
that is not less than 50 percent of the total amount’’; 
and 
(2) in subparagraph (B)(i), by striking ‘‘25 percent’’ and 
inserting ‘‘an amount that is not less than 40 percent of the 
total amount’’. 
SEC. 5303. LOAN AUTHORIZATION LEVELS. 
Section 346(b)(1) of the Consolidated Farm and Rural Develop-
ment Act (7 U.S.C. 1994(b)(1)) is amended— 
(1) in the matter preceding subparagraph (A), by striking 
‘‘$3,796,000,000 for each of fiscal years 2003 through 2007’’ 
and inserting ‘‘$4,226,000,000 for each of fiscal years 2008 
through 2012’’; and 
(2) in subparagraph (A)— 
(A) in the matter preceding clause (i), by striking 
‘‘$770,000,000’’ and inserting ‘‘$1,200,000,000’’; 
(B) in clause (i), by striking ‘‘$205,000,000’’ and 
inserting ‘‘$350,000,000’’; and 
(C) in clause (ii), by striking ‘‘$565,000,000’’ and 
inserting ‘‘$850,000,000’’. 
SEC. 5304. TRANSITION TO PRIVATE COMMERCIAL OR OTHER SOURCES 
OF CREDIT. 
Subtitle D of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1981–2008r) is amended by inserting after section 
344 the following: 
‘‘SEC. 345. TRANSITION TO PRIVATE COMMERCIAL OR OTHER SOURCES 
OF CREDIT. 
‘‘(a) IN GENERAL.—In making or insuring a farm loan under 
subtitle A or B, the Secretary shall establish a plan and promulgate 
regulations (including performance criteria) that promote the goal 
of transitioning borrowers to private commercial credit and other 
sources of credit in the shortest period of time practicable. 
‘‘(b) COORDINATION.—In carrying out this section, the Secretary 
shall integrate and coordinate the transition policy described in 
subsection (a) with— 
‘‘(1) the borrower training program established by section 
359; 
‘‘(2) the loan assessment process established by section 
360; 
‘‘(3) the supervised credit requirement established by sec-
tion 361; 
‘‘(4) the market placement program established by section 
362; and 
‘‘(5) other appropriate programs and authorities, as deter-
mined by the Secretary.’’.
H. R. 6124—265 
SEC. 5305. EXTENSION OF THE RIGHT OF FIRST REFUSAL TO 
REACQUIRE 
HOMESTEAD 
PROPERTY 
TO 
IMMEDIATE 
FAMILY MEMBERS OF BORROWER-OWNER. 
Section 352(c)(4)(B) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 2000(c)(4)(B)) is amended— 
(1) in the 1st sentence, by striking ‘‘, the borrower-owner’’ 
inserting ‘‘of a borrower-owner who is a socially disadvantaged 
farmer or rancher (as defined in section 355(e)(2)), the borrower- 
owner or a member of the immediate family of the borrower- 
owner’’; and 
(2) in the 2nd sentence, by inserting ‘‘or immediate family 
member, as the case may be,’’ before ‘‘from’’. 
SEC. 5306. RURAL DEVELOPMENT AND FARM LOAN PROGRAM ACTIVI-
TIES. 
Subtitle D of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1981–2008r) is amended by inserting after section 
364 the following: 
‘‘SEC. 365. RURAL DEVELOPMENT AND FARM LOAN PROGRAM ACTIVI-
TIES. 
‘‘The Secretary may not complete a study of, or enter into 
a contract with a private party to carry out, without specific 
authorization in a subsequent Act of Congress, a competitive 
sourcing activity of the Secretary, including support personnel of 
the Department of Agriculture, relating to rural development or 
farm loan programs.’’. 
Subtitle E—Farm Credit 
SEC. 5401. FARM CREDIT SYSTEM INSURANCE CORPORATION. 
(a) IN GENERAL.—Section 1.12(b) of the Farm Credit Act of 
1971 (12 U.S.C. 2020(b)) is amended— 
(1) in the first sentence, by striking ‘‘Each Farm’’ and 
inserting the following; 
‘‘(1) IN GENERAL.—Each Farm’’; and 
(2) by striking the second sentence and inserting the fol-
lowing: 
‘‘(2) COMPUTATION.—The assessment on any association or 
other financing institution described in paragraph (1) for any 
period shall be computed in an equitable manner, as determined 
by the Corporation.’’. 
(b) RULES
AND REGULATIONS.—Section 5.58(10) of such Act 
(12 U.S.C. 2277a-7(10)) is amended by inserting ‘‘and section 
1.12(b)’’ after ‘‘part’’. 
SEC. 5402. TECHNICAL CORRECTION. 
Section 3.3(b) of the Farm Credit Act of 1971 (12 U.S.C. 2124(b)) 
is amended in the first sentence by striking ‘‘per’’ and inserting 
‘‘par’’. 
SEC. 5403. BANK FOR COOPERATIVES VOTING STOCK. 
(a) IN GENERAL.—Section 3.3(c) of the Farm Credit Act of 
1971 (12 U.S.C. 2124(c)) is amended by striking ‘‘and (ii)’’ and 
inserting ‘‘(ii) other categories of persons and entities described 
in sections 3.7 and 3.8 eligible to borrow from the bank, as deter-
mined by the bank’s board of directors; and (iii)’’.
H. R. 6124—266 
(b) CONFORMING AMENDMENTS.—Section 4.3A(c)(1)(D) of such 
Act (12 U.S.C. 2154a(c)(1)(D)) is amended by redesignating clauses 
(ii) and (iii) as clauses (iii) and (iv), respectively, and inserting 
after clause (i) the following: 
‘‘(ii) persons and entities eligible to borrow from 
the banks for cooperatives, as described in section 
3.3(c)(ii);’’. 
SEC. 5404. PREMIUMS. 
(a) AMOUNT IN FUND NOT EXCEEDING SECURE BASE AMOUNT.— 
Section 5.55(a) of the Farm Credit Act of 1971 (12 U.S.C. 2277a- 
4(a)) is amended— 
(1) in paragraph (1)— 
(A) in the matter preceding subparagraph (A)— 
(i) by striking ‘‘paragraph (2)’’ and inserting ‘‘para-
graph (3)’’; and 
(ii) by striking ‘‘annual’’ ; and 
(B) by striking subparagraphs (A) through (D) and 
inserting the following: 
‘‘(A) the average outstanding insured obligations issued 
by the bank for the calendar year, after deducting from 
the obligations the percentages of the guaranteed portions 
of loans and investments described in paragraph (2), multi-
plied by 0.0020; and 
‘‘(B) the product obtained by multiplying— 
‘‘(i) the sum of— 
‘‘(I) the average principal outstanding for the 
calendar year on loans made by the bank that 
are in nonaccrual status; and 
‘‘(II) the average amount outstanding for the 
calendar year of other-than-temporarily impaired 
investments made by the bank; by 
‘‘(ii) 0.0010.’’; 
(2) by striking paragraph (4); 
(3) by redesignating paragraphs (2) and (3) as paragraphs 
(3) and (4), respectively; 
(4) by inserting after paragraph (1) the following: 
‘‘(2) DEDUCTIONS
FROM
AVERAGE
OUTSTANDING
INSURED 
OBLIGATIONS.—The average outstanding insured obligations 
issued by the bank for the calendar year referred to in para-
graph (1)(A) shall be reduced by deducting from the obligations 
the sum of (as determined by the Corporation)— 
‘‘(A) 90 percent of each of— 
‘‘(i) the average principal outstanding for the cal-
endar year on the guaranteed portions of Federal 
government-guaranteed loans made by the bank that 
are in accrual status; and 
‘‘(ii) the average amount outstanding for the cal-
endar year of the guaranteed portions of Federal 
government-guaranteed investments made by the bank 
that are not permanently impaired; and 
‘‘(B) 80 percent of each of— 
‘‘(i) the average principal outstanding for the cal-
endar year on the guaranteed portions of State govern-
ment-guaranteed loans made by the bank that are 
in accrual status; and
H. R. 6124—267 
‘‘(ii) the average amount outstanding for the cal-
endar year of the guaranteed portions of State govern-
ment-guaranteed investments made by the bank that 
are not permanently impaired.’’; 
(5) in paragraph (3) (as so redesignated by paragraph (3) 
of this subsection), by striking ‘‘annual’’; and 
(6) in paragraph (4) (as so redesignated by paragraph (3) 
of this subsection)— 
(A) in the paragraph heading, by inserting ‘‘OR INVEST-
MENTS’’ after ‘‘LOANS’’ ; and 
(B) in the matter preceding subparagraph (A), by 
striking ‘‘As used’’ and all that follows through ‘‘guaran-
teed—’’ and inserting ‘‘In this section, the term ‘govern-
ment-guaranteed’, when applied to a loan or an investment, 
means a loan, credit, or investment, or portion of a loan, 
credit, or investment, that is guaranteed—’’. 
(b) AMOUNT IN FUND EXCEEDING SECURE BASE AMOUNT.—Sec-
tion 5.55(b) of such Act (12 U.S.C. 2277a-4(b)) is amended by 
striking ‘‘annual’’. 
(c) SECURE BASE AMOUNT.—Section 5.55(c) of such Act (12 
U.S.C. 2277a-4(c)) is amended— 
(1) by striking ‘‘For purposes’’ and inserting the following: 
‘‘(1) IN GENERAL.—For purposes’’; 
(2) by striking ‘‘(adjusted downward’’ and all that follows 
through ‘‘by the Corporation)’’ and inserting ‘‘(as adjusted under 
paragraph (2))’’; and 
(3) by adding at the end the following: 
‘‘(2) ADJUSTMENT.—The aggregate outstanding insured 
obligations of all insured System banks under paragraph (1) 
shall be adjusted downward to exclude an amount equal to 
the sum of (as determined by the corporation)— 
‘‘(A) 90 percent of each of— 
‘‘(i) the guaranteed portions of principal out-
standing on Federal government-guaranteed loans in 
accrual status made by the banks; and 
‘‘(ii) the guaranteed portions of the amount of Fed-
eral government-guaranteed investments made by the 
banks that are not permanently impaired; and 
‘‘(B) 80 percent of each of— 
‘‘(i) the guaranteed portions of principal out-
standing on State government-guaranteed loans in 
accrual status made by the banks; and 
‘‘(ii) the guaranteed portions of the amount of State 
government-guaranteed investments made by the 
banks that are not permanently impaired.’’. 
(d) DETERMINATION OF LOAN AND INVESTMENT AMOUNTS.—Sec-
tion 5.55(d) of such Act (12 U.S.C. 2277a-4(d)) is amended— 
(1) in the subsection heading, by striking ‘‘PRINCIPAL OUT-
STANDING’’ and inserting ‘‘LOAN AND INVESTMENT AMOUNTS’’; 
(2) in the matter preceding paragraph (1), by striking ‘‘For 
the purpose’’ and all that follows through ‘‘made—’’ and 
inserting ‘‘For the purpose of subsections (a) and (c), the prin-
cipal outstanding on all loans made by an insured System 
bank, and the amount outstanding on all investments made 
by an insured System bank, shall be determined based on— 
’’;
H. R. 6124—268 
(3) in each of paragraphs (1), (2), and (3), by inserting 
‘‘all loans or investments made’’ before ‘‘by’’ the first place 
it appears; and 
(4) in each of paragraphs (1) and (2), by inserting ‘‘or 
investments’’ after ‘‘that is able to make such loans’’ each 
place it appears. 
(e) 
ALLOCATION
TO
SYSTEM
INSTITUTIONS
OF
EXCESS 
RESERVES.—Section 5.55(e) of such Act (12 U.S.C. 2277a-4(e)) is 
amended— 
(1) in paragraph (3), by striking ‘‘the average secure base 
amount for the calendar year (as calculated on an average 
daily balance basis)’’ and inserting ‘‘the secure base amount’’; 
(2) in paragraph (4), by striking subparagraph (B) and 
inserting the following: 
‘‘(B) there shall be credited to the allocated insurance 
reserves account of each insured system bank an amount 
that bears the same ratio to the total amount (less any 
amount credited under subparagraph (A)) as— 
‘‘(i) the average principal outstanding for the cal-
endar year on insured obligations issued by the bank 
(after deducting from the principal the percentages 
of the guaranteed portions of loans and investments 
described in subsection (a)(2)); bears to 
‘‘(ii) the average principal outstanding for the cal-
endar year on insured obligations issued by all insured 
System banks (after deducting from the principal the 
percentages of the guaranteed portions of loans and 
investments described in subsection (a)(2)).’’; and 
(3) in paragraph (6)— 
(A) in subparagraph (A)— 
(i) in the matter preceding clause (i), by striking 
‘‘beginning more’’ and all that follows through ‘‘January 
1, 2005’’; 
(ii) by striking clause (i) and inserting the fol-
lowing: 
‘‘(i) subject to subparagraph (D), pay to each 
insured System bank, in a manner determined by the 
Corporation, an amount equal to the balance in the 
Allocated Insurance Reserves Account of the System 
bank; and’’; and 
(iii) in clause (ii)— 
(I) by striking ‘‘subparagraphs (C), (E), and 
(F)’’ and inserting ‘‘subparagraphs (C) and (E)’’; 
and 
(II) by striking ‘‘, of the lesser of—’’ and all 
that follows through the end of subclause (II) and 
inserting ‘‘at the time of the termination of the 
Financial Assistance Corporation, of the balance 
in the Allocated Insurance Reserves Account estab-
lished under paragraph (1)(B).’’; 
(B) in subparagraph (C)— 
(i) in clause (i), by striking ‘‘(in addition to the 
amounts described in subparagraph (F)(ii))’’; and 
(ii) by striking clause (ii) and inserting the fol-
lowing: