Federal Crop Insurance Reform and Department of Agriculture Reauthorization Act of 1994
PL 103-354 (H.R.4217), enacted 10/13/1994

108 STAT. 3178 
PUBLIC LAW 103-354—OCT. 13, 1994 
Public Law 103-
103d Congress 
354 
Oct. 13,1994 
[H.R. 4217] 
Federal Crop 
Insurance 
Reform and 
Department of 
Agriculture 
Reorganization 
Act of 1994. 
7 u s e 6901 note. 
An Act 
To reform the Federal crop insurance program, and for other purposes. 
Be it enacted by the Senate and House of Representatives of 
the United States of 
America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the "Federal Crop 
Insurance Reform and Department of Agriculture Reorganization 
Act of 1994". 
(b) TABLE OF CONTENTS.—The table of contents of this Act 
is as foUows: 
Sec. 1. Short title; table of contents. 
TITLE 
I—FEDERAL 
CROP 
INSURANCE 
REFORM 
Sec. 101. Short title; references. 
Sec. 102. Definitions. 
Sec. 103. Members of Board of Directors of Corporation. 
Sec. 104. General powers. 
Sec. 105. Personnel. 
Sec. 106. Crop insurance. 
Sec. 107. Crop insurance yield coverage. 
Sec. 108. Preemption. 
Sec. 109. Advisory Committee. 
Sec. 110. Funding. 
Sec. 111. Noninsured crop disaster assistance. 
Sec. 112. Payment and income limitations. 
Sec. 113. Producer eligibility. 
Sec. 114. Ineligibility for catastrophic risk and noninsured assistance payments. 
Sec. 115. Elimination of eender references. 
Sec. 116. Prevented planting. 
Sec. 117. Report on improving dissemination of crop insurance information. 
Sec. 118. Crop insurcmce provider evaluation. 
Sec. 119. Conforming amendments. 
Sec. 120. Effective date. 
TITLE n—DEPARTMENT OF AGRICULTURE REORGANIZATION 
Sec. 201. Short title. 
Sec. 202. Purpose. 
Sec. 203. Definitions. 
Subtitle A—General Reorganization Authorities 
Sec. 211. Transfer of Department functions to Secretaiv of Agriculture. 
Sec. 212. Authority of Secretary to delegate transferred functions. 
Sec. 213. Reductions in number of department personnel. 
Sec. 214. Consolidation of headquarters ofFices. 
Sec. 215. Combination of field offices. 
Sec. 216. Improvement of information sharing. 
Sec. 217. Reports by the Secretary. 
Sec. 218. Assistant Secretaries of'^Agriculture. 
Sec. 219. Pay increases prohibited. 
Subtitle B—Farm and Foreign Agricultural Services 
Sec. 225. Under Secretary of Agriculture for Farm and Foreign Agricultural Serv-
PUBLIC LAW 103-354—OCT. 13, 1994 
108 STAT. 3179 
Sec. 226. Consolidated Farm Service A|[ency. 
Sec. 227. State, county, and area committees. 
Subtitle C—^Rural Economic and Community Development 
Sec. 231. Under Secretary of Agriculture for Rural Economic and Community De-
velopment. 
Sec. 232. Rural Utilities Service. 
Sec. 233. Rural Housing and Community Development Service. 
Sec. 234. Riu-al Business and Cooperative Development Service. 
Sec. 235. Conforming amendments regarding Rural Electrification Administration. 
Subtitle D—Food, Nutrition, and Consumer Services 
Sec. 241. Under Secretary of Agriculture for Food, Nutrition, €uid Consumer Serv-
ices. 
Subtitle E—Natural Resources and Environment 
Sec. 245. Under Secretary of Agriculture for Natural Resoiirces and Environment. 
Sec. 246. Natural Resources Conservation Service. 
Sec. 247. Reorganization of Forest Service. 
Subtitle F—^Research, Education, and Economics 
Sec. 251. Under Secretary of Agriculture for Research, Education, and Economics. 
Sec. 252. Program staff. 
Subtitle G—Food Safety 
Sec. 261. Under Secretary of Agricultiure for Food Safety. 
Sec. 262. Conditions for implementation of alterations in the level of additives al-
lowed in animal diets. 
Subtitle H—National Appeals Division 
Sec. 271. Definitions. 
Sec. 272. National Appeals Division and Director. 
Sec. 273. Transfer of^mnctions. 
Sec. 274. Notice and opportunity for hearing. 
Sec. 275. Informal hearings. 
Sec. 276. Right of participants to Division hearing. 
Sec. 277. Division Hearings. 
Sec. 278. Director review of determinations of hearing officers. 
Sec. 279. Judicial review. 
Sec. 280. Implementation of final determinations of Division. 
Sec. 281. Conforming amendments relating to National Appeals Division. 
Sec. 282. Ebcpansion of issues covered by State mediation programs. 
Sec. 283. Authorization of appropriations. 
Subtitle I—^Miscellaneous Reorganization Provisions 
Sec. 291. Successorship provisions relating to bargaining units and exclusive rep-
resentatives. 
Sec. 292. Piirchase of American-made equipment and products. 
Sec. 293. Miscellaneous conforming amendments. 
Sec. 294. Removal of obsolete administrative provisions. 
Sec. 295. Proposed conforming amendments. 
Sec. 296. Termination of authority. 
TITLE m—MISCELLANEOUS 
Sec. 301. Poultry labeling. 
Sec. 302. First Amendment rights of employees of the United States Department 
of Agriculture. 
Sec. 303. Adjusted cost of thriffy food plan. 
Sec. 304. Ofnce of Risk Assessment and Cost-Benefit Analysis. 
Sec. 305. Fair and equitable treatment of socially disadvantaged producers. 
Sec. 306. Aviation inspections. 
TITLE I—FEDERAL CROP INSURANCE 
f^J^^S^^ 
REFORM 
Reform Act of 
1994. 
SEC. 101. SHORT TITLE; REFERENCES. 
(a) SHORT TITLE.—This title may be cited as the "Federal 7 use 1501 note. 
Crop Instirance Reform Act of 1994". 
79-194 O—95—18 : QL 3 Part 4 
108 STAT. 3180 
PUBLIC LAW 103-354—OCT. 13,1994 
(b) REFERENCES TO FEDERAL CROP INSURANCE ACT.—^Except 
as otherwise expressly provided, whenever in this title an amend-
ment or repeal is expressed in terms of an amendment to, or 
repeal of, a section or other provision, the reference shall be consid-
ered to be made to a section or other provision of the Federal 
Crop Insurance Act (7 U.S.C. 1501 et seq.). 
SEC. 102. DEFINITIONS. 
(a) IN GENERAL.—Section 502 (7 U.S.C. 1502) is amended— 
(1) by striking the section heading and "SEC. 502." and 
inserting the following: 
"SEC. 502. PURPOSE AND DEFIMTIONS. 
"(a) PURPOSE.—"\ and 
(2) by adding at the end the following new subsection: 
"(b) DEFINITIONS.^AS used in this title: 
"(1) ADDITIONAL COVERAGE.—^The term 'additional coverage' 
means a plan of crop insurance coverage providing a level 
of coverage greater than the level available under catastrophic 
risk protection. 
(2) APPROVED INSURANCE PROVIDER.—^The term 'approved 
insurance provider' means a private insurance provider that 
has been approved by the Corporation to provide insurance 
coverage to producers participatmg in the Federal crop insur-
ance program established under this title. 
*
X
3
) BOARD.—The term 'Board' means the Board of Direc-
tors of the Corporation established under section 505(a). 
"(4) CORPORATION.—The term 'Corporation' means the Fed-
eral Crop Insurance Corporation established under section 503. 
"(5) DEPARTMENT.—^The term 'Department' means the 
United States Department of 
Agriculture. 
"(6) LOSS RATIO.—^The term 'loss ratio' means the ratio 
of all sums paid by the Corporation as indemnities under any 
eligible crop insurance poUc^ to that portion of the premiimi 
designated for sinticipated losses and a reasonable reserve, 
other than that portion of the premium designated for operating 
and administrative expenses. 
"(7) SECRETARY.--The term 'Secretary* means the Secretary 
of Agriculture. 
^(8) TRANSITIONAL YIELD.—The term transitional yield' 
means the maximiun average production per acre or equivalent 
mesisure that is assigned to acreage for a crop year by the 
Corporation in accordance with the regulations of me Corpora-
tion whenever the producer fails— 
"(A) to certify that acceptable documentation of produc-
tion and acreage for the crop year is in the possession 
of the producer; or 
"(B) to present the acceptable documentation on the 
demand of the Corporation or an insurance company 
reinsured by the Corporation.". 
(b) CONFORMING AMENDMENTS.— 
(1) The first sentence of section 503 (7 U.S.C. 1503) is 
amended by striking "(herein called the Corporation)". 
(2) Section 504 (7 U.S.C. 1504) is amended— 
(A) in subsection (a), by striking "Board of Directors 
of the Corporation" and inserting "Board"; and 
(B) in subsection (d), by striking "Federal Crop Insur-
ance Corporation" and inserting "Corporation". 
PUBLIC LAW 103-354—OCT. 13, 1994 
108 STAT. 3181 
(3) The first sentence of section 505(a) (7 U.S.C. 1505(a)) 
is amended by striking "(hereinafter called the 'Board')". 
(4) Except in section 502, the Act is amended— 
7 U
S
C 1501 et 
(A) by striking "Board of Directors" each place it *^-
appears and inserting "Board"; 
(B) by striking 'T)epartment of Agriculture" each place 
it appears and inserting "Department; and 
(C) by striking "Secretary of Agriculture" each place 
it appears and inserting "Secretary". 
SEC. 103. MEMBERS OF BOARD OF DIRECTORS OF CORPORATION. 
The second sentence of section 505(a) (7 U.S.C. 1505(a)) is 
amended— 
(1) by striking "or Assistant Secretary" the first place it 
appears; and 
(2) by striking "the Under Secretary or Assistant Secretary 
of Agriculture resi)onsible for the farm credit programs of the 
Department of Agriculture" and inserting "one additional Under 
Secretary of Agriculture (as designated by the Secretary of 
Agriculture)". 
SEC. 104. GENERAL POWERS. 
Section 506 (7 U.S.C. 1506) is amended— 
(1) by redesignating subsections (j) through (n) as sub-
sections (k) through (o), respectively; 
(2) by inserting after subsection (i) the following new 
subsection: 
"(j) SETTLING CLAIMS.—^The Corporation shall have the author-
ity to make final and conclusive settiement and adjustment of 
any claim by or against the Corporation or a fiscal officer of the 
Corporation. ; 
(3) in subsection (1) (as so redesignated)— 
(A) in the first sentence, by inserting ", and issue 
regulations," after "agreements"; and 
(B) in the second sentence, by striking "contracts or 
agreements" each place it appears and inserting "contracts, 
agreements, or regulations"; 
(4) in subsection (nXD (as so redesignated), by striking 
subparagraph (B) and inserting the following new subpara-
graph: 
"(B) disqualify the person 
fix)m 
purchasing catastrophic 
risk nrotection or receiving noninsured asSstance for a 
period of not to exceed 2 years, or from receiving any 
other benefit under this titie for a period of not to exceed 
10 years."; 
(5) in subsection (o) (as so redesignated)— 
(A) by redesignating paragraphs (1) through (4) as 
subparagraphs (A) through (D) and ahgning the mai-gins 
of each subpsiragraph with the margins of subpsiragraph 
(A) of subsection (n)(l) (as redesignated by paragraph (1)); 
(B) by striking "(o) ACTUARL\L SOUNDNESS.—The (IJor-
poration" and inserting the following: 
"(O) ACTUARL!\L SOUNDNESS.— 
"(1) 
PROJECTED LOSS RATIO AS OF OCTOBER i, 1995.—^The 
Corporation"; 
(C) in subparagraph (A) (as redesignated by subpara-
graph (A)), by striking "from obtaining adequate Federal 
crop insurance, as determined by the Corporation" and 
108 STAT. 3182 
PUBLIC LAW 103-354—OCT. 13, 1994 
inserting "(as defined by the Secretary) fix)m obtaining 
Federal crop insurance"; 
(D) in subparagraph (C) (as so redesignated)— 
(i) by inserting ", agents, and loss adjusters" after 
"participating producers , and 
(ii) by inserting ", agents, and loss adjusters" after 
"identify insured producers"; and 
(E) by adding at tiie end the following new paragraphs: 
"(2) PROJECTED LOSS RATIO AS OF OCTOBER i, i998.—The 
Corporation shall take such actions, including the establish-
ment of adequate premiums, as are necessary to improve the 
actuarial soundness of Federal multiperil crop insurance made 
available under this title to achieve, on and after Octo-
ber 1, 1998, an overall projected loss ratio of not greater than 
1.075. 
"(3) NONSTANDARD CLASSIFICATION SYSTEM.—To the extent 
that the Corporation uses the nonstandard classification sys-
tem, the Corporation shall apply the system to aU insured 
producers in a fair and consistent manner. ; and 
(6) by adding at the end the following new subsections: 
"(p) REGULATIONS.—^The Secretary and the Corporation are each 
authorized to issue such regulations as are necessary to carry 
out this titie. 
"(q) PROGRAM COMPLIANCE.— 
"(1) TiMEUNESS.—The Corporation shall work actively with 
approved insurance providers to address program compliance 
and integrity issues as the issues develop. 
"(2) NOTIFICATION OF COMPLIANCE PROBLEMS.—The Cor-
poration shall notify in writing any approved insiu*ance provider 
with whom the Corporation has an agreement under tins titie 
of any error, omission, or failure to foUow Corporation regula-
tions or procedures for which the approved insurance provider 
may be responsible and which may result in a debt owed 
the Corporation. The notice shall be given within 3 years of 
the end of the insurance period during which the error, omis-
sion, or failing is alleged to have occiured, except that this 
time limit shall not apply with respect to errors, omissions, 
or procedural violations that are willfiil or intentional. The 
failure to timely provide the notice required under this sub-
section shall reUeve the approved insurance provider fii^m the 
debt owed the Corporation. 
"(r) 
PURCHASE 
OF 
AMERICAN-MADE 
EQUIPMENT 
AND 
PRODUCTS.— 
"(1) SENSE OF CONGRESS.—It is the sense of Congress that, 
to the greatest extent practicable, all equipment £ind products 
purchased by the Corporation using fiinds made available to 
the Corporation should be American-made. 
"(2) NOTICE REQUIREMENT.—In providing financial assist-
ance to, or entering into any contract with, any entity for 
tiie purchase of equipment and products to carry out this titie, 
the Corporation, to the greatest extent practicable, shall provide 
to tiie entity a notice describing me statement made in 
paragraph (1).". 
SEC. 106. PERSONNEL. 
Section 507 (7 U.S.C. 1507) is amended— 
PUBLIC LAW 103-354—OCT. 13, 1994 
108 STAT. 3183 
(1) in subsection (a), by stiriking ", and county crop insur-
ance committeemen"; 
(2) in subsection (d), by striking "of this Act," and all 
that follows through "agency"; and 
(3) by adding at the end the following new subsection: 
"(g)(1) The Corporation shall estabUsh a management-level posi-
tion to be known as the Specialty Crops Coordinator. 
"(2) The Specialty Crops Coordinator shall have primary respon-
sibility for addressing the needs of specialty crop producers, and 
for providing information and advice, in connection with the activi-
ties of the Corporation to improve and expand the insurance pro-
^:^m for specialty crops. In carrying out this paragraph, the 
Specialty Crops Coordinator shall act as the liaison of the Corpora-
tion witii representatives of specialty crop producers and assist 
the Corporation with the knowledge, expertise, and famiharity of 
the producers with risk management and production issues pertain-
ing to specialty crops. 
"(3) The Specialty Crops Coordinator shall use information 
collected from Corporation neld office directors in States in which 
specialty crous have a significant economic effect and from other 
sources, 
iacluding the extension 
service and colleges and 
universities.". 
SEC. 106. CROP INSURANCE. 
Section 508 (7 U.S.C. 1508) is amended to read as follows: 
"SEC. 608. CROP INSURANCE. 
"(a) AUTHORITY TO OFFER INSURANCE.— 
"(1) IN GENERAL.—If sufficient actuarial data are available 
(as determined by the Corporation), the Corporation may 
insure, or provide reinsurance for insurers of, producers of 
agricultural commodities grown in the United States under 
1 or more plans of insurance determined by the Corporation 
to be adapted to the agricultural conmiodity concerned. To 
qualify for coverage under a plan of insurance, the losses of 
me insured conmiodity must be due to drought, flood, or other 
natural disaster (as determined by the Secretary). 
"(2) PERIOD.—Except in the cases of tobacco and potatoes, 
insiu'ance shall not extend beyond the period during which 
the insured conmiodity is in the field. As used in the preceding 
sentence, in the case of an aquacultural species, the term 
*field' means the environment in which the commodity is pro-
duced. 
"(3) EXCLUSIONS.—Insurance provided under this sub-
section shall not cover losses due to— 
"(A) the neglect or malfeasance of the producer; 
"(B) the failure of the producer to reseed to the same 
crop in such areas and imder such circumstances as it 
is customary to reseed; or 
"(C) the failure oi the producer to follow good farming 
practices (as determined by the Secretary). 
(4) EXPANSION TO OTHER AREAS OR SINGLE PRODUCERS.— 
"(A) AREA EXPANSION.—The Corporation may offer 
plans of insurance or reinsurance for production of agricul-
tural commodities in the Commonwealth of Puerto Rico, 
the Virgin Islands, Guam, American Samoa, the Common-
wealth of the Northern Mariana Islands, the Republic of 
the Marshall Islands, the Federated States of Micronesia,^ 
108 STAT. 3184 
PUBLIC LAW 103-354—OCT. 13,1994 
and the Republic of Palau in the same manner as provided 
in this section for production of agricultural conmiodities 
in the United States. 
"(B) PRODUCER EXPANSION.—In an area in the United 
States or specified in subparagraph (A) where crop insur-
ance is not available for a particular agricultural commod-
ity, the Corporation may offer to enter into a written 
agreement with an individual producer operating in the 
area for insiurance coverage imder this title if ihe producer 
has actuarially sound data relating to the production by 
the producer of the commodity and the data is acceptable 
to the Corporation. 
"(5) DISSEMINATION OF CROP INSURANCE INFORMATION.— 
The Corporation shall make available to producers through 
local offices of the Department— 
"(A) current and complete information on all aspects 
of Federal crop insurance; £uid 
"(B) a listing of insurance agents and companies offer-
ing to sell crop insurance in tne area of the producers. 
"(6) ADDITION OF NEW AND SPECIALTY CROPS.— 
Federal 
«(A) DATA COLLECTION.—Not later than 180 days after 
'^^*®[; 
the date of enactment of this paragraph, the Secretary 
pu ca ion. 
shall issue guidelines for publication in the Federal Reg-
ister for data collection to assist the Corporation in formu-
lating crop insurance policies for new and specialty crops. 
Reports- 
'XB) ADDITION OF NEW CROPS.—^Not later than 1 year 
after the date of enactment of this paragraph, and annually 
thereafter, the Corporation shall report to Congress on 
the progress and expected timetable for expanding crop 
insurance coverage under this titie to new and specialty 
crops. 
"(C) ADDITION OF DIRECT SALE PERISHABLE CROPS.— 
Not later than 1 year after the date of enactment of this 
paragraph, the Corporation shall report to Congress on 
the feasibility of offering a crop insurance program designed 
to meet the needs of specisiHzed producers of vegetables 
and other perishable crops who market through direct 
marketing cnannels. 
"(b) CATASTROPHIC RISK PROTECTION.— 
"(1) IN GENERAL.—^The Corporation shall offer a cata-
strophic risk protection plan to indemnify producers for crop 
loss due to loss of yield or prevented planting, if provided 
by the Corporation, when the producer is unable, because of 
drought, flood, or other natural disaster (as determined by 
tiie Secretary), to plant other crops for harvest on the acreage 
for the crop year. 
"(2) AMOUNT OF COVERAGE.— 
"(A) IN GENERAL.—Subject to subparagraph (B)— 
"(i) in the case of each of the 1995 through 1998 
crop years, catastrophic risk protection shall offer a 
producer coverage for a 50 percent loss in yield, on 
an individual yield or area yield basis, indemnified 
at 60 percent of the expected market price, or a com-
parable coverage (as determined by the Corporation); 
and 
"(ii) in the case of each of the 1999 and subsequent 
crop years, catastrophic risk protection shall offer a 
PUBLIC LAW 103-354—OCT. 13, 1994 
108 STAT. 3185 
producer coverage for a 50 percent loss in yield, on 
an individual yield or area jdeld basis, indemnified 
at 55 percent of the expected market price, or a com-
parable coverage (as determined by the Corporation). 
(B) REDUCTION IN ACTUAL PAYMENT.—The amount 
paid to a producer on a claim imder catastrophic risk 
protection may reflect a reduction that is proportional to 
the out-of-pocket expenses that are not incurred by the 
producer as a result of not i)lanting, growing, or harvesting 
the crop for which the claim is made, as determined by 
the Corporation. 
"(3) YIELD AND LOSS BASIS.—A producer shall have the 
option of basing the catastrophic coverage of the producer on 
an individual yield and loss basis or on aoa. area yield and 
loss basis, if bom options are offered by the Corporation. 
"(4) SALE OF CATASTROPHIC RISK COVERAGE.— 
"(A) IN GENERAL.—Catastrophic risk coverage may be 
offered by— 
(i) approved insurance providers, if available in 
an area; and 
"(ii) at the option of the Secretary that is based 
on 
considerations 
of need, 
local offices 
of the 
Department 
"(B) NEED.—For piuposes of considering need under 
subparagra^ (A)(ii), the Secretary may take into account 
the most efficient and cost-effective use of resources, the 
availability of personnel, fairness to local producers, the 
needs and convenience of local producers, and 
the 
availability of private insurance carriers. 
"(5) ADMINISTRATIVE FEE.— 
"(A) FEE REQUIRED.—Producers shall pay an adminis-
trative fee for catastrophic risk protection. The administra-
tive fee for each producer shall be $50 per crop per county, 
but not to exceed $200 per producer per county up to 
a maximum of $600 per producer for all counties in which 
a producer has insured crops. The administrative fee shall 
be paid by the producer at the time the producer apphes 
for catastrophic risk protection. 
"(B) USE OF FEES.— 
**(i) FEES UP TO $IOO.— 
"(I) FEES COLLECTED BY USDA OFFICES.—Not 
more than $100 of the administrative fees paid 
by a producer for catastrophic risk coverage that 
are collected by an office of the Department shall 
be credited to tiie appropriations account providing 
funds for the payment of operating and administra-
tive expenses incurred for the deUvery of cata-
strophic risk protection under this section. The 
fees shall be collected in accordance with appro-
priation Acts and shall be available until expended 
without fiscal year limitation for the payment of 
the expenses. 
"(II) FEES COLLECTED BY APPROVED INSURANCE 
PROVIDERS.—Not more than $100 of the adminis-
trative fees paid by a producer for catastrophic 
risk coverage that are collected by an approved 
insurance provider shall be retained by the pro-
108 STAT. 3186 
PUBLIC LAW 103-354—OCT. 13,1994 
vider as payment for operating and administi^tive 
expenses incurred for the delivery of catastrophic 
risK protection. 
"(ii) FEES IN EXCESS OF $IOO.—Notwithstanding the 
authority granted to the Secretary under the Federal 
Crop Insurance Corporation account provisions of the 
Agricultural, Rural Development, Food and Drug 
Administration, and Related Agencies Appropriations 
Act, 1995, aU fees collected imder this subsection in 
excess of $100 per producer per county shall be depos-
ited in the crop insurance fund established under 
section 516(c), to be available for the programs and 
activities of the Corporation. 
"(C) WAIVER OF FEE.—^The Corporation shall waive the 
administrative fee for limited resource farmers, as defined 
by the Corporation. 
"(6) PARTICIPATION REQUIREMENT.—^A producer may obtain 
catastrophic risk coverage for a crop of the producer on land 
in the county only if me producer obtains the coverage for 
the crop on all insurable kind of the producer in the county. 
"(7) EUGIBIUTY FOR DEPARTMENT PROGRAMS.— 
"(A) IN GENERAL.—^To be eligible for any price support 
or production adjustment 
program, the conservation 
reserve program, or any benefit described in section 371 
of the Consolidated Farm and Rural Development Act, 
the producer must obtain at least the catastrophic level 
of insurance for each crop of economic significance grown 
on each £arm in the county in which t£e producer has 
an interest, if insurance is available in the county for 
the crop. 
"(B) DEFINITION OF CROP OF ECONOMIC SIGNIFICANCE.— 
As used in this paragraph, the term 'crop of economic 
significance' means a crop that has contributed, or is 
expected to contribute, 10 percent or more of the total 
expected value of all crops grown by the producer. 
"(8) LIMITATION DUE TO RISK.—The Corporation may limit 
catastrophic risk coverage in any coimty or area, or on any 
farm, on the basis of the insurance risk concerned. 
"(9) TRANSITIONAL COVERAGE FOR 1995 CROPS.—^Effective 
only for a 1995 crop planted or for which insiurance attached 
prior to January 1, 1995, the Corporation shall allow producers 
of the crops until not later than the end of the 180-day period 
beginning on the date of enactment of the Federal Crop Insur-
ance Reform Act of 1994 to obtain catastrophic risk protection 
for the crop. On enactment of such Act, a producer who made 
timely purchases of a crop insurance policy before the date 
of enactment of such Act, under the provisions of this titie 
then in efiect, shall be eligible for the same benefits to which 
a producer would be entitied under comparable additional cov-
erage under subsection (c). 
"(10) SIMPLIFICATION.— 
"(A) CATASTROPHIC RISK PROTECTION PLANS.—In devel-
oping and carrying out the policies and procedures for 
a catastrophic risk protection plan under this titie, the 
Corporation shall, to the maximum extent practicable, 
minimize the paperwork required and the complexity and 
PUBLIC LAW 103-354—OCT. 13, 1994 
108 STAT. 3187 
costs of procedures governing applications for, processing, 
and servicing of the plan for all pEuties involved. 
**(B) QmER PLANS.—To the extent that the policies 
and procedures developed under subparagraph (A) may 
be applied to other plsms of insurance offered under this 
title without jeopardizing the actuarial soundness or integ-
rity of the crop insurance program, the Corporation shall 
apply the policies and procedures to the other plans of 
insurance within a reasonable period of time (as determined 
by the Corporation) after the effective date of this 
paragraph. 
"(c) GENERAL COVERAGE LEVELS.— 
"(1) ADDITIONAL COVERAGE GENERALLY.— 
"(A) IN GENERAL.—The Corporation shall offer to 
producers of agricultural commodities grown in the United 
States plsms of crop insurance that provide additional 
coverage. 
"(B) PURCHASE.—^To be eligible for additional coverage, 
a producer must apply to an approved insurance provider 
for ptuxhase of adcfitional coverage if the coverage is avail-
able fix)m an approved insurance provider. If additional 
coverage is unavailable privately, the Corporation may offer 
additional coverage plans of insurance directiy to producers. 
"(2) TRANSFER OF RELEVANT INFORMATION.—^If a producer 
has already appUed for catastrophic risk protection at the local 
office of tihe Department and elects to purchase additional 
coverage, the relevant information for the crop of the producer 
shall be trsmsferred to the approved insurance provider servic-
ing the additional coverage crop policy. 
"(3) YIELD AND LOSS BASIS.—A producer shall have the 
option of purchasing additional coverage based on an individual 
yield and loss basis or on an area yield and loss basis, if 
both options are offered by the Corporation. 
"(4) LEVEL OF COVERAGE.—^The level of coverage shall be 
doUar denominated and may be purchased at any level not 
to exceed 85 percent of the individual yield or 95 percent 
of the area jdeld (as determined by the Corporation). Not later 
than the beginning of the 1996 crop year, the CJorporation 
shall provide producers with information on catastrophic risk 
and additional coverage in terms of dollar coverage (within 
the allowable limits of coverage provided in this paragraph). 
"(5) PRICE LEVEL.—^The Corporation shall estabUsh a price 
level for each conmiodity on which insurance is offered that— 
"(A) shall not be less than the projected market price 
for the commodity (as determined by the Corporation); 
or 
"(B) at the discretion of the Corporation, may be based 
on the actual market price at the time of harvest (as 
determined by the Corporation). 
"(6) PRICE ELECTIONS.— 
"(A) IN GENERAL.—Subject to subparagraph (B), insur-
ance coverage shall be made available to a producer on 
the basis of any price election that equals or is less than 
the price election established by the Corporation. The cov-
erage shall be quoted in terms of dollars per acre. 
108 STAT. 3188 
PUBLIC LAW 103-354—OCT. 13, 1994 
"(B) MINIMUM PRICE ELECTIONS.—^The Corporation may 
establish minimum price elections below wluch levels of 
instu'ance shall not be offered. 
"(C) WHEAT CLASSES AND MALTING BARLEY.—^The Cor-
poration shall, as the Corporation determines practicable, 
offer producers different price elections for classes of wheat 
and malting barley (including contract prices in the case 
of malting barley), in addition to the standard price elec-
tion, that reflect different market prices, as determined 
by the Corporation. The Corporation shall, as the Corpora-
tion determines practicable, offer additional coverage for 
each class determined under this subpsiragraph and charge 
a premium for each class that is actuarially soimd. 
"(7) FIRE AND HAIL COVERAGE.—^For levels of additional 
coverage equal to 65 percent or more of the recorded or 
appraised average yield indemnified at 100 percent of the 
expected market price, or an equivalent coverage, a producer 
may elect to delete from the additional coverage any coverage 
against damage caused by fire and hail if the producer obtains 
an equivalent or greater doUar amoimt of coverage for damage 
caused by fire and hail fi-om an approved insurance provider. 
On written notice of the election to the company issuing the 
poUcy providing additional coverage and submission of evidence 
of substitute coverage on the commodity insured, the premium 
of the producer shall be reduced by an amoimt determined 
by the Corporation to be actuarially appropriate, tsiking into 
account the actuarial value of the remaining coverage provided 
by the Corporation. In no event shall the producer be given 
credit for an amount of premium determined to be greater 
than the actuarial value of the protection against losses caused 
by fire and hail that is included in the additional coverage 
for the crop. 
"(8) STATE PREMIUM SUBSIDIES.—^The Corporation may 
enter into an agreement witii any State or agency of a State 
imder which the State or agency may pay to the approved 
insiurance provider sin additional premium subsidy to further 
reduce the portion of the premimn paid by producers in the 
State. 
"(9) LIMITATIONS ON ADDITIONAL covERAGE.^The Board 
may limit the availabihty of additional coverage under this 
subsection in any county or area, or on any farm, on the 
basis of the insurance risk involved. The Board shall not offer 
additional coverage equal to less than 50 percent of the recorded 
or appraised average yield indenmified at 100 percent of the 
expected market price, or an equivalent coverage. 
"(10) ADMINISTRATIVE FEE.— 
"(A) FEE REQUIRED.—Except as otherwise provided in 
this paragraph, if a producer elects to purchase additional 
coverage for a crop at a level that is less than 65 percent 
of the recorded or appraised average j^eld indemnified 
at 100 percent of the expected market price, or an equiva-
lent coverage, the producer shall pay an administrative 
fee for the additional coverage. Subsection (b)(5) shall apply 
in determining the amount and use of the administrative 
fee or in determining whether to waive the administrative 
fee. 
PUBLIC LAW 103-354—OCT. 13, 1994 
108 STAT. 3189 
"(B) EXCEPTION.—If a producer elects to purchase addi-
tional coverage for a crop equal to 65 percent or more 
of the recorded or appraised average yield indemnified 
at 100 percent of the expected market price, or an equiva-
lent coverage, the producer shall not be subject to the 
administrative fee required by this paragraph or subsection 
(b)(5). If the producer has sdready paid the administrative 
fee for a lower level of coverage for tiie crop, the administra-
tive fee shall be refunded to me producer unless the refiind 
would reduce to less than $200 the total amoimt of the 
administrative fees paid by the producer for 2 or more 
crops in the same county for which a lower level of coverage 
is obtained. 
"(C) ADDITIONAL FEE.—If a producer elects to purchase 
additional coverage for a crop equal to or exceeding 65 
percent of the recorded or appraised average jdeld and 
100 percent of the expected market price or an equivalent 
coverage, the producer shall pay an administrative fee of 
$10 for the coverage. If a producer has already paid an 
administrative fee for lesser coverage for the crop, the 
fee for lesser coverage shall be refunded to the producer 
unless the producer has paid the maximum fee for lesser 
coverage and refund of the fee wiU not reduce the amount 
to be paid below the maximum amount 
"(D) DEPOSIT OF FEES.—Notwithstsinding the authority 
o'anted to the Secretary under the Federal Crop Insurance 
Corporation account provisions of the Agricultural, Rural 
Development, Food and Drug Administration, and Related 
Agencies Appropriations Act, 1995, administrative fees col-
lected under subparagraph (B) in excess of $100 per pro-
ducer per county and under subparagraph (C) shall be 
deposited in the insurance fund estabUshed under section 
516(c) to be available for the programs and activities of 
the Corporation. 
"(d) PREMIUMS.— 
"(1) PREMIUMS REQUIRED.—The Corporation shall fix ade-
quate premiums for aU the plans of insurance of the Corporation 
at such rates as the Board determines are actuarially sufficient 
to attain an expected loss ratio of not greater than 1.1 through 
September 30, 1998, and not greater than 1.075 afler Octo-
ber 1,1998. 
"(2) PREMIUM AMOUNTS.—^The premium amounts for cata-
stropliic risk protection under subsection (b) and additional 
coverage imder subsection (c) shall be fixed as follows: 
v 
"(A) In the case of catastrophic risk protection, the 
amount of the nremium shall be sufficient to cover antici-
pated losses and a reasonable reserve. 
"(B) In the case of additional coverage below 65 percent 
of the recorded or appraised average j^eld indemnified 
at 100 percent of the expected market price, or an equiva-
lent coverage, but greater than 50 percent of the recorded 
or appraised average yield indemnified at 100 percent of 
the expected market price, or an. equivalent coverage, the 
amount of the premium shall— 
"(i) be sufficient to cover anticipated losses and 
a reasonable reserve; and 
108 STAT. 3190 
PUBLIC LAW 103-354—OCT. 13, 1994 
"(ii) include an amoiint for operating and adrnims-
trative expenses, as determined by the Corporation. 
"(C) In the case of additional coverage equal to or 
greater than 65 percent of the recorded or appraised aver-
age jdeld indemnified at 100 percent of the expected market 
price, or an equivalent coverage, the amount of the pre-
mium shall— 
"(i) be sufficient to cover anticipated losses and 
a reasonable reserve; and 
"(ii) include an amoimt for operating and adminis-
trative expenses, as determiriea by the Corporation, 
on an industry-wide basis as a percentage of the 
amount of the premium used to define loss ratio. 
"(e) PAYMENT OF PORTION OF PREMIUM BY CORPORATION.— 
"(1) IN GENERAL.—For the piupose of encouraging the 
broadest possible participation of producers in the catastrophic 
risk protection provided under subsection (b) and the additional 
coverage provided imder subsection (c), tiie Corporation shall 
pay a part of the premium in the amounts provided in accord-
since with this subsection. 
"(2) AMOUNT OF PAYMENT.—The amount of the premium 
to be paid by tiie Corporation shall be as foUows: 
"(A) In the case of catastrophic risk protection, the 
amount shall be equivalent to the premium established 
for catastrophic risk protection under subsection (d)(2)(A). 
"(B) In the case of coverage below 65 percent of the 
recorded or appraised average yield indemnified at 100 
percent of the expected market price, or an equivalent 
coverage, but greater than 50 percent of the recorded or 
appraised average yield indemmfied at 100 percent of the 
expected market price, or an equivalent coverage, the 
Eimount shall be equivalent to the amount of premium 
established for catastrophic risk protection coverage and 
the amount of operating and admuustrative expenses estab-
lished under subsection (d)(2)(B). 
"(C) In the case of coverage equal to or greater than 
65 percent of the recorded or appraised average jdeld 
indemnified at 100 percent of the expected market price, 
or an equivalent coverage, on an individual or area basis, 
the amount shall be equivalent to an amount equal to 
the premium estabHshed for 50 percent loss in yield indem-
nified at 75 percent of the expected market price and 
the amount of operating and admuustrative expenses estab-
lished under subsection (d)(2)(C). 
"(3) PREMIUM REDUCTION.—If an approved insurance pro-
vider determines that the provider may provide insurance more 
efficientiy than the expense reimbursement amount established 
by the Corporation, the approved insurance provider may 
reduce, subject to the approval of the Corporation, the premium 
charged the insured by an amount corresponding to the effi-
ciency. The approved insurance provider shall apply to the 
Corporation for authority to reduce the premium before making 
sucn a reduction, and the reduction shall be subiect to the 
rules, 
limitations, 
and procedures 
estabUshea by the 
Corporation. 
"(4) INDIVIDUAL AND AREA CROP INSURANCE COVERAGE.— 
The Corporation shall allow approved insurance providers to 
PUBLIC LAW 103-354—OCT. 13, 1994 
108 STAT. 3191 
oflfer a plan of insurance to producers that combines both 
individual jdeld coverage £ind area yield coverage at a premium 
rate determined b)[ the provider under the following conditions: 
"(A) The individual yield coverage shall oe equal to 
or greater than catastrophic risk protection as described 
in subsection (b). 
"(B) The combined policy shall include area yield cov-
erage that is offered by the Corporation or similar area 
coverage, as determined by the Corporation. 
*
*
(
C
) The Corporation shall provide reinsiu*ance on th3 
area yield portion of the combined policy at the request 
of the provider, except that the provider shall agree to 
{)ay to the producer any portion of the area yield and 
O
S
S indemnity payment received fix)m the Corporation or 
a conmiercial reinsurer that exceeds the individual indem-
nity payment made by the provider to the producer. 
(D) The Corporation shall pay a part of the premium 
equivalent to— 
"(i) the amount authorized under paragraph (2) 
(except provisions regarding operating and administra-
tive ejcpenses); and 
"(ii) the amount of operating and administrative 
expenses authorized by the Corporation for the area 
yield coverage portion of the combined policy. 
(E) The provider shall provide all underwriting serv-
ices for the combined poUcy, including the determination 
of individual yield coverage premium rates, the terms and 
conditions of the policy, and the acceptance and classifica-
tion of applicants into risk categories, subject to subpara-
graph (F). 
"(F) The Corporation shall approve the combined policy 
unless the Corporation determines that the policy is not 
actuarisdly sound or that the interests of producers are 
not adequately protected. 
"(f) EUGIBIUTY.— 
"(1) IN GENERAL.—To participate in catastrophic risk 
protection coverage under this section, a producer shall submit 
an application at the local office of the Department or to an 
approved insurance provider. 
"(2) SALES CLOSING DATE.—^For coverage under this title, 
each producer shall purchase crop insurance on or before the 
sales closing date for the crop by providing the required 
information and executing the required documents. Subject to 
the goal of ensuring actuarial soundness for the crop insurance 
program, the sales closing date shall be established b^ the 
Corporation to maximize convenience to producers in obtaining 
benefits under price and production a(^ustment programs of 
the Department. Beginning witih the 1995 crop year, the Cor-
poration shall establish, for an insurance policy for each insur-
able crop that is planted in the spring, a sales closing date 
that is 30 days earlier than the corresponding sEdes closing 
date that was established for the 1994 crop year. 
"(3) RECORDS AND REPORTING.—TO obtain catastrophic risk 
protection under subsection (b) or additional coverage under 
subsection (c), a producer shall— 
"(A) provide, to the extent required by the Corporation, 
records acceptable to the Corporation of historical acreage 
108 STAT. 3192 
PUBLIC LAW 103-354—OCT. 13, 1994 
Regulations. 
and production of the crops for which the insurance is 
sought or accept a yield determined by the Corporation; 
and 
"(B) report acreage planted and prevented fix)m plant-
ing by the designated acreage reporting date for the crop 
and location £is estabUshed by the Corporation. 
"(g) YIELD IDETERMINATIONS.— 
"(1) IN GENERAL.—Subject to paragraph (2), the Corporation 
shall estabHsh crop insurance underwriting rules that ensure 
that yield coverage, as specified in this subsection, is provided 
to eligible producers obtaining catastrophic risk protection 
under subsection (b) or additional coverage under subsection 
(0. 
"(2) YIELD COVERAGE PLANS.— 
"(A) 
ACTUAL 
PRODUCTION 
HISTORY.—Subject 
to 
subparagraph (B), the yield for a crop shall be based on 
the actual production history for the crop, if the crop was 
produced on the farm without penalty during each of the 
4 crop years immediately preceding the crop year for which 
actual production history is being estabHshed, building up 
to a production data base for each of the 10 consecutive 
crop years preceding the crop year for which actual produc-
tion history is being estabUshed. 
"(B) ASSIGNED YIELD.—If the producer does not provide 
satisfactory evidence of the yield of a commodity under 
subparagraph (A), the producer shall be assigned a yield 
that is not less than 65 percent of the transitional yield 
of the producer (a(^justed to reflect actual production 
reflected in the records acceptable to the Corporation for 
continuous j^ears), as specified in r e l a t i o n s issued by 
the Corporation based on production history requirements. 
"(C) AREA YIELD.—^The Corporation may offer a crop 
insurance plan based on an area yield that allows an 
insured producer to qualify for an indemnity if a loss has 
occurred in an area (as specified by the Corporation) in 
which tiie farm of the producer is located. Under an area 
yield plan, an insured producer shall be allowed to select 
the level of area production at which an. indemnity will 
be paid consistent with such terms and conditions as are 
estabHshed by the Corporation. 
"(D) COMMODITY-BY-COMMODITY BASIS.—A producer 
may choose between individual jdeld or area yield coverage 
or combined coverage (as provided in subsection (e)(4)), 
if available, on a commodity-by-commodity basis. 
"(3) TRANSITIONAL YIELDS FOR PRODUCERS OF FEED OR 
FORAGE.— 
"(A) IN GENERAL.—If a producer does not provide satis-
factory evidence of a yield under parEigrapn (2)(A), the 
producer shall be cussigned a yield that is at least 80 
percent of the transitional yield estabHshed by the Corpora-
tion (adjusted to reflect me actual production history of 
the producer) if the Secretary determines that— 
"(i) the producer grows feed or forage primarily 
for on-farm use in a Hvestock, dairy, or poultry oper-
ation; and 
"(ii) over 50 percent of the net farm income of 
the producer is derived fix)m the operation. 
PUBLIC LAW 103-354—OCT. 13, 1994 
108 STAT. 3193 
"(B) YIELD CALCULATION.—The Corporation shall— 
"(i) for the first year of participation of a producer, 
provide the assigned yield under this paragraph to 
the producer of feed or forage; and 
**(ii) for the second year of participation of the 
producer, apply the actual production history or 
assigned yield requirement, as provided in this 
subsection. 
"(C) TERMINATION OF AUTHORITY.—The authority pro-
vided by this paragraph shall terminate on the date that 
is 3 years after the effective date of this paragraph. 
*(h) SUBMISSION OF POUCIES AND MATERIALS TO BOARD.— 
"(1) IN GENERAL.—In addition to any standard forms or 
policies that the Board may require be made available to 
producers under subsection (c), a person may prepare for 
submission or propose to the Board— 
"(A) other crop insurance policies and provisions of 
poHcies; and 
"(B) rates of premiums for multiple peril crop insurance 
pertaining to wheat, soybeans, field com, and any other 
crops determined by the Secretary. 
"(2) SUBMISSION OF POUCIES.—A poUcy or other material 
submitted to the Board under this subsection may be prepared 
without regard to the limitations contained in this title, includ-
ing the requirements concerning the levels of coverage and 
rates and the requirement that a price level for each commodity 
insured must equal the expected market price for the commod-
ity as established by the Board. In the case of such a poUcy, 
the payment by the Corporation of a portion of the premium 
of the poHcy may not exceed the amount that would otherwise 
be authorized under subsection (e). 
"(3) REVIEW AND APPROVAL BY THE BOARD.—A pohcy or 
other material submitted to the Board under this subsection 
shall be reviewed by the Board and, if the Board finds that 
the interests of producers are adequately protected and that 
any premiums charged to the producers are actuarially appro-
priate, shall be approved by the Board for reinsurance and 
for sale to producers as an additional choice at actuarially 
appropriate rates and under appropriate terms and conditions, 
llie Corporation may enter into more than 1 reinsurance agree-
ment with the approved insurance provider simultaneously to 
facihtate the offering of the new poUcies. 
"(4) GUIDEUNES FOR SUBMISSION AND REVIEW.—The Cor- Regulations. 
poration shall issue regulations to establish guidelines for the 
submission, and Board review, of poUcies or other material 
submitted to the Board under this subsection. At a minimum, 
the guidelines shall ensure the following: 
"(A) A proposal submitted to the Board under this 
subsection shall be considered as confidential commercial 
or financial information for purposes of section 552(b)(4) 
of title 5, United States Code, until approved by the Board. 
A proposal disapproved by the Board shall remain confiden-
tial commercial or financial information. 
"(B) The Board shall provide an applicant with the 
opportunity to present the proposal to the Board in person 
if the appUcant so desires. 
108 STAT. 3194 
PUBLIC LAW 103-354—OCT. 13,1994 
Federal 
Register, 
publication. 
"(C) The Board shall provide an applicant with notifica-
tion of intent to disapprove a proposal not later than 30 
days prior to making the disapproval. An appUcant that 
receives the notification may modify the apphcation of the 
appUcant. Any modification shall be considered an original 
apphcation for purposes of tiiis paragraph. 
"(D) Specinc guideUnes shall prescribe tiie timing of 
submission of proposals under this subsection and timely 
consideration by me Board so that any approved proposal 
may be made available to all persons reinsured by the 
Corporation in a manner permitting the persons to partici-
pate, if tiie persons so desire, in offering such a proposal 
m the first crop year in which the proposal is approved 
by tiie Board for reinsurance, premium subsidy, or other 
support offered by tiiis titie. 
"(5) REQUIRED PUBLICATION.—Any policy, provision of a 
poUcy, or rate approved under this subsection shall be published 
as a notice in the Federal Register and made available to 
all persons contracting with or reinsured by the Corporation 
imder the terms and conditions of the contract between the 
Corporation and the person originally submitting the poHcy 
or other material. 
"(6) PILOT COST OF PRODUCTION RISK PROTECTION PLAN.— 
"(A) IN GENERAL.—^The Corporation shall offer, to the 
extent practicable, a cost of production risk protection plan 
of insurance that indemnifies producers (including new 
producers) for insurable losses as provided in this para-
graph. 
"(B) PILOT BASIS.—^The cost of production risk protec-
tion plan shEdl— 
"(i) be estabHshed as a pilot project for each of 
the 1996 and 1997 crop years; and 
"(ii) be carried out in a number of counties that 
is determined by the Corporation to be adequate to 
provide a comprehensive evaluation of the feasibility, 
effectiveness, and demand among producers for the 
plan. 
*(C) INSURABLE LOSS.—An insurable loss shall be 
incurred by a producer if the gross income of the producer 
(as determinea by the Corporation) is less than an amount 
determined by the Corporation, as a result of a reduction 
in yield or price resulting fix)m an insured cause. 
"(D) DEFINITION OF NEW PRODUCER.—^As used in this 
paragraph, the term *new producer* means a person that 
has not been actively engaged in farming for a share of 
the production of the insured crop for more tiian 2 crop 
years, as determined by the Secretary. 
"(7) ADDITIONAL PREVENTED PLANTING POLICY COVERAGE.— 
"(A) IN GENERAL.—Beginning witii tiie 1995 crop year, 
the Corporation shall offer to producers additional pre-
vented planting coverage that insures producers against 
losses in accordance with this paragraph. 
"(B) APPROVED INSURANCE PROVIDERS.—^Additional pre-
vented planting coverage shall be offered by the Corpora-
tion through approved insurance providers. 
"(C) TIMING OF LOSS.—A crop loss shall be covered 
by the additional prevented planting coverage if— 
PUBLIC LAW 103-354—OCT. 13,1994 
108 STAT. 3195 
**(i) crop insurance policies were obtained for— 
"(I) the crop year the loss was experienced; 
and 
"(II) the crop year immediately preceding the 
year of the prevented planting loss; and 
(ii) the cause of the loss occurred— 
"(I) after the sales closing date for the crop 
in the crop year inmiediately preceding the loss; 
and 
"(II) before the sales closing date for the crop 
in the year in which the loss is experienced. 
"(8) 
PILOT 
PROGRAM 
OF 
ASSIGNED YIELDS 
FOR 
NEW 
PRODUCERS.— 
"(A) PROGRAM REQUIRED.—For each of the 1995 and 
1996 crop years, the Corporation shall carry out a pilot 
program to assign to eligible new producers higher assigned 
yields than would otherwise be assigned to me producers 
under subsection (g). The Corporation shall include in the 
pilot program 30 counties that are determined by the Cor-
poration to be adequate to provide a comprehensive evalua-
tion of the feasibility, effectiveness, and demand among 
new producers for increased assigned yields. 
*(B) INCREASED ASSIGNED YIELDS.—In the case of an 
eligible new producer participating in the pilot program, 
the Corporation shall assign to the new producer a yield 
that is equal to not less tiian 110 percent of the transitional 
yield otherwise estabHshed by the Corporation. 
"(C) ELIGIBLE NEW PRODUCER.—^The Secretary shall 
estabUsh a definition of new producer for purposes of deter-
mining eUgibility to participate in the pilot program, 
"(i) ADOPTION OF RATES AND COVERAGES.—The Corporation 
shall adopt, as soon as practicable, rates and coverages mat will 
improve the actuarial soundness of the insurance operations of 
the Corporation for those crops tliat are determined to be insured 
at rates that are not actuarially sound, except that no rate may 
be increased by an amount of more than 20 percent over the 
comparable rate of the preceding crop year, 
"(j) CLAIMS FOR LOSSES.— 
"(1) IN GENERAL.—Under rules prescribed by the Corpora- Regulations, 
tion, the Corporation may provide for adjustment and payment 
of claims for losses. The rules prescribed by the Corporation 
shall establish standards to ensure that all claims for losses 
are adjusted, to the extent practicable, in a uniform and timely 
manner. 
"(2) DENIAL OF CLAIMS.— 
"(A) IN GENERAL.—Subject to subparagraph (B), if a 
claim for indemnity is denied by the Corporation or an 
approved provider, an action on me claim may be brought 
against the Corporation or Secretary only in the United 
States district court for tiie district in wnich the insured 
farm is located. 
"(B) STATUTE OF UMITATIONS.—A suit on the claim 
may be brought not later than 1 year after the date on 
which final notice of denial of the claim is provided to 
the dainmnt. 
"(3) INDEMNIFICATION.—The Corporation shall provide 
approved insurance providers with indemnification, including 
108 STAT. 3196 
PUBLIC LAW 103-354—OCT. 13,1994 
costs and reasonable attorney fees incurred by the approved 
insurance provider, due to errors or omissions on tne part 
of the Corporation. 
"(k) REINSURANCE.— 
"(1) IN GENERAL.—Notwithstanding any other provision of 
this title, the Corporation shall, to the maximum extent prac-
ticable, provide reinsurance to insiurers approved by the Cor-
poration that insure producers of any agricultural commodity 
luider 1 or more plans acceptable to the Corporation. 
"(2) TERMS AND CONDITIONS.—^The reinsurance shall be 
provided on such terms and conditions as the Board may deter-
mine to be consistent with subsections (b) and (c) and soiuid 
reinsurance principles. 
"(3) SHARE OF RISK.—The reinsiu*ance agreements of the 
Corporation with the reinsured companies shall require the 
reinsiu^d companies to bear a sufficient share of any potential 
loss under the agreement so as to ensiire that the reinsured 
company wiQ sell and service poUcies of insurance in a sound 
and prudent manner, taking mto consideration the financial 
condition of the reinsured companies and the availabiHty of 
private reinsurance. 
"(4) RATE.—^The rate estabhshed by the Board to reimbm^e 
approved insurance providers and agents for the administrative 
and operating costs of the providers and agents shall not 
exceed-— 
"(A) for the 1997 reinsurance year, 29 percent of the 
premium used to define loss ratio; 
"(B) for the 1998 reinsurance year, 28 percent of the 
premium used to define loss ratio; and 
"(C) for the 1999 reinsurance year, 27.5 percent of 
the premium used to define loss ratio. 
"(5) COST AND REGULATORY REDUCTION.—Consistent with 
section 118 of the Federsil Crop Insurance Reform Act of 1994, 
and consistent with maintenance of program integrity, preven-
tion of fi*aud and abuse, the need for program expansion, and 
improvement of quaUty of service to customers, the Board shall 
alter program procedures and administrative requirements in 
order to reduce the adnunistrative and operating costs of 
approved insurance providers and agents in an amount that 
corresponds to any reduction in the reimbursement rate 
required under paragraph (4) diuing the 5-year period begin-
ning on the date of enactment of this paragraph. 
"(6) AGENCY DISCRETION.—The determination of whether 
the Corporation is achieving, or has achieved, corresponding 
administrative cost savings shall not be subject to administra-
tive review, and is wholly committed to agency discretion within 
the meaning of section 701(a)(2) of title 5, United States Code. 
"(7) PLAN.—The Corporation shall submit to Congress a 
plan outlining the measures that will be used to achieve the 
reduction required under paragraph (5). If the Corporation 
can identify additional cost reduction measures, the Corporation 
shall describe the measures in the plan. 
"(1) OPTIONAL COVERAGES.—The (Jorporation may offer specific 
risk protection programs, including protection against prevented 
planting, wildhfe depredation, tree damage and disease, and insect 
infestation, under such terms and conditions as the Board may 
determine, except that no program may be undertaken if insurance 
PUBLIC LAW 103-354—OCT. 13, 1994 
108 STAT. 3197 
for the specific risk involved is generally available fi^m private 
companies. 
"(m) RESEARCH.— 
"(1) IN GENERAL.—Except as provided in paragraph (2), 
the Corporation may conduct research, surveys, pilot programs, 
and investigations relating to crop insurance and agriculture-
related r i s ^ and losses including inturance on losses involving 
reduced forage on rangeland caused by drought and by insect 
infestation, livestock poisoning and disease, destruction of bees 
due to the use of pesticides, and other unique special risks 
related to finiits, nuts, vegetables, aquacultural species, forest 
industry needs (including appreciation), and other agricultural 
producte as determined by the Board. 
"(2) EXCEPTION.—^No action may be undertaken with 
respect to a risk under paragraph (1) if insurance protection 
against the risk is generally available fi-om private companies. 
"(3) EVALUATION.—After the completion of any pilot pro-
gram under this subsection, the Corporation shall evaluate 
the pilot program and submit to the Committee on Agriculture 
of the House of Representatives and the Committee on Agri-
culture, Nutrition, and Forestry of the Senate, a report of 
the operations of the pilot program, including tne evaluation 
by the Corporation of the pilot program and the recommenda-
tions of the Corporation with respect to implementing the pro-
gram on a natiomd basis.". 
SEC. 
1
0
7
. 
CROP 
INSURANCE 
YIELD 
COVERAGE. 
Section 508A (7 U.S.C. 1508a) is repealed. 
SEC. 108. PREEMPTION. 
Section 511 (7 U.S.C. 1511) is amended by adding at the end 
the following sentence: "A contract of insurance of the Corporation, 
and a contract of insurance reinsured by the Corporation, shall 
be exempt from taxation imposed by any State, municipality, or 
local taxing authority.". 
SEC. 109. ADVISORY COMMITTEE. 
The Act is amended by inserting after section 514 (7 U.S.C. 
1514) the following new section: 
"SEC. 515. ADVISORY COMMITTEE FOR FEDERAL CROP INSURANCE. 
7 USC 1515. 
"(a) ESTABLISHMENT.—The Secretary may establish within the 
Depgirtment an advisory committee to be known as the 'Advisory 
Committee for Federal Crop Insurance'. 
"(b) PRIMARY RESPONSIBIUTY.—The primary responsibihty of 
the Advisory Committee shaU be to advise the Secretaiy on the 
implementation of this titie and on other issues related to crop 
insurance, as determined by the Manager of the Corporation. 
"(c) MEMBERSHIP.—^The Advisory Committee snail be composed 
of the Manager of the Corporation, the Secretary (or a designee 
of the Secretary), and not fewer than 12 members representing 
organizations and agencies involved in the provision of crop insur-
ance under this titie. Not fewer than 3 of the members of the 
Advisory Committee shall be representatives of the specialty crops 
industry. The organizations or agencies represented by members 
on the Advisory Committee may include insurance companies, insur-
ance agents, farm producer organizations, experts on agronomic 
practices, and banking and lending institutions. 
108 STAT. 3198 
PUBUC LAW 103-354—OCT. 13, 1994 
"(d) ADMINISTRATIVE PROVISIONS.— 
"(1) TERMS.—^Members of the Advisory Committee (other 
than the Manager of the Corporation and the Secretary) shall 
be appointed by the Secretary for a term of up to 2 years 
from nominations made by the organizations and agencies speci-
fied in subsection (c). The terms of the members (other than 
the Manager of the Corporation and the Secretary) shall be 
staggered. 
*(2) CHAIRPERSON.—The Advisory Committee shall be 
chaired by the Manager of the Corporation. 
"(3) MEETINGS.—^The Advisory Conmiittee shall meet at 
least annually. The meetings of the Advisory Committee shall 
be pubUcly announced in advance and shall be open to the 
public. Appropriate records of the activities of the Adviso^ 
Conmiittee shall be kept and made available to the public 
on request. 
**(e) REPORTS.—^Not later than June 30 of each year, the 
Advisory Committee shall submit to the Secretary a report specifjr-
ing the conclusions and recommendations of the Advisory Commit-
tee regarding— 
"(1) the progress toward implementation of this title; 
"(2) the actuarial soundness of the Federal crop insurance 
program; 
"(3) the rate of producer participation in both catastrophic 
risk protection under section 508(b) and additional coverage 
imder section 508(c); and 
"(4) the progress toward improved crop insurance coverage 
for new and specialty crops. 
"(f) TERMINATION OF AUTHORITY.—The authority provided by 
this section shall terminate on September 30,1998.". 
SEC. 110. FUNDING. 
Section 516 (7 U.S.C. 1516) is amended to read as follows: 
"SEC. 516. FUNDING. 
"(a) AUTHORIZATION OF APPROPRIATIONS.— 
"(1) DISCRETIONARY EXPENSES.—There are authorized to 
be appropriated for each of fiscal years 1995 through 2001 
such sums as are necessary to cover— 
"(A) the salaries and expenses of the Corporation; and 
"(B) the administrative and operating expenses of the 
Corporation for the sales commissions of agents. 
"(2) MANDATORY EXPENSES.—There are authorized to be 
appropriated such svans as are necessary to cover— 
"(A) in the case of each of the 1995 through 1997 
reinsurance years, the administrative 
and operating 
expenses of the Corporation for the sales commissions of 
agents, consistent with subsection (b)(1); 
"(B) premium subsidies, iDcluding the administrative 
and operating expenses of an approved insurance provider 
for the delivery of poUcies with additional coverage; and 
"(C) payments for noninsured assistance losses under 
section 519. 
"(b) PAYMENT OF EXPENSES.— 
"(1) ADMINISTRATIVE AND OPERATING EXPENSES.— 
"(A) IN GENERAL.—^Except as provided in subparagraph 
(B), in the case of each of me 1995 through 1997 reinsur-
ance years, the Corporation is authorized to pay irom. the 
PUBLIC LAW 103-354--OCT. 13, 1994 
108 STAT. 3199 
insxirance fund established under subsection (c), the 
administrative and operating expenses of an approved 
insurance provider, including expenses covered by sub-
section (a)(1)(B). 
"(B) SALES COMMISSIONS FOR 1997 REINSURANCE YEAR.— 
In the case of the 1997 reinsurance year, the amount 
of the payments from the insurance fund established under 
subsection (c) for the expenses of the Corporation for the 
sales conmiissions of agents may not exceed 8.5 percent 
of the total amount of premiums paid for additional cov-
erage for the 1997 reinsurance year. 
"(2) OTHER EXPENSES.—The Corporation is authorized to 
pay from the insiu*ance fund established under subsection (c)— 
"(A) all other expenses of the Corporation (other than 
expenses covered by subsection (a)(1)), including all pre-
nuum subsidies, noninsured 
assistance benefits, and 
indemnities; 
"(B) subject to paragraph (1)(B), in the case of each 
of the 1995 through 1997 reinsurance years, all administra-
tive and expense reimbursements due under a reinsurance 
agreement with an approved insurance provider; and 
"(C) to the extent necessaiy, expenses incurred by the 
Corporation to cany out researcn and development. 
"(c) INSURANCE FUND.— 
"(1) IN GENERAL.—There is estabUshed an insurance fund, 
for the deposit of premium income and amounts made available 
under subsection (a)(2), to be available without fiscal year 
limitation. 
"(2) COMMODITY CREDIT CORPORATION FUNDS.—If at any 
time the amounts in the insurance fund are insuSicient to 
enable the Corporation to carry out subsection (b), to the extent 
the fiinds of the Commodity Credit Corporation are available— 
"(A) the Corporation may request the Secretary to use 
the flmds of the Commodity Credit Corporation to carry 
out subsection (b); and 
"(B) the Secretaiy may use the funds of the Conmiodity 
Credit Corporation to cany out subsection (b).". 
SEC. 111. NONINSURED CROP DISASTER ASSISTANCE. 
Section 519 (7 U.S.C. 1519) is amended to read as follows: 
"SEC. 519. NONINSURED CROP DISASTER ASSISTANCE PROGRAM. 
"(a) ESTABUSHMENT OF PROGRAM.— 
"(1) ESTABLISHMENT.—In the case of an eHgible crop 
described in paragraph (2), the Corporation shall estabhsh a 
noninsured crop disaster assistance program to provide cov-
erage equivalent to the catastrophic risk protection otherwise 
available under section 508(b). 
"(2) ELIGIBLE CROPS.— 
"(A) IN GENERAL.—As used in this section, the term 
'eUgible crop' means each commercial crop or other agricul-
tural commoditj'(except Uvestock)— 
"(i) for which catastrophic risk protection under 
section 508(b) is not available; and 
"(ii) that is produced for food or fiber. 
"(B) CROPS SPECIFICALLY INCLUDED.—^The term 'eHgible 
crop' shall include floricultural, ornamental nursery, and 
Christmas tree crops, turfgrass sod, and industrial crops. 
108 STAT. 3200 
PUBLIC LAW 103-354—OCT. 13, 1994 
"(3) CAUSE OF LOSS.—^To qualify for assistance under tMs 
section, the losses of the noninsured commodity shall be due 
to drought, flood, or other natural disaster, as determined by 
the Secretary. 
"(b) 
APPLICATION 
FOR 
NONINSUPVED 
CROP 
DISASTER 
ASSISTANCE.— 
"(1) TIMELY APPUCATION.—To be eUgible for assistance 
under this section, a producer shall submit an application for 
noninsured crop disaster assistance at a local office of the 
Department The appUcation shall be in such form, contain 
such information, and be submitted at such time as the Cor-
poration may require. 
"(2) RECORDS.—^A producer shall annually provide records, 
as required by the Corporation, of previous crop acreage, acre-
age yields, and production, or the producer shall accept a yield 
under subsection (e)(3) determined by the Corporation. 
"(3) ACREAGE REPORTS.—^A producer shaU provide reports 
on acreage planted or prevented from being planted, as required 
by the Corporation, by the designated acreage reporting date 
for the crop and location as estabhshed by the Corporation. 
"(c) Loss REQUIREMENTS.— 
"(1) REQUIRED AREA LOSS.—A producer of an eUgible crop 
shall not receive noninsured crop disaster assistance unless 
the average yield for that crop, or an equivalent measure in 
the event yield data are not available, in an area falls below 
65 percent of the expected area yield, as estabhshed by the 
Corporation. 
"(2) PREVENTED PLANTING.—Subject to paragraph (1), the 
Corporation shall make a prevented planting noninsured crop 
disaster assistance payment if the producer is prevented from 
planting more than 35 percent of the acreage intended for 
the ehgible crop because of drought, flood, or other natural 
disaster, as determined by the Secretary. 
"(3) REDUCED YIELDS.—Subject to paragraph (1), the Cor-
poration shall make a reduced yield noninsured crop disaster 
assistance payment to a producer if the total quantity of the 
eligible crop that the producer is able to harvest on any farm 
is, because of drought, flood, or other natural disaster as deter-
mined by the Secretary, less than 50 percent of the expected 
individual yield for the crop, as determined by the Corporation, 
factored for the interest of the producer for the crop. 
"(d) PAYMENT.—^The Corporation shall make available to a pro-
ducer ehgible for noninsured assistance under this section a 
payment computed by multiplying— 
"(1) the quantity that is less than 50 percent of the estab-
lished yield for the crop; by 
**(2)(A) in the case of each of the 1995 through 1998 crop 
years, 60 percent of the average market price for the crop 
(or any comparable coverage determined by the Corporation); 
or 
"(B) in the case of each of the 1999 and subsequent crop 
years, 55 percent of the average market price for the crop 
(or any comparable coverage determined by the Corporation); 
by 
"(3) a payment rate for the type of crop (as determined 
by the Corporation) that— 
PUBLIC LAW 103-354—OCT. 13,1994 
108 STAT. 3201 
"(A) in the case of a crop that is produced with a 
significant and variable harvesting expense, reflects the 
decreasing cost incurred in the production cycle for the 
crop that is— 
"(i) harvested; 
"(ii) planted but not harvested; and 
**(iii) prevented fi*om being planted because of 
drought, flood, or otiier natural disaster (as determined 
bv the Secretary); and 
"(B) in the case of a crop that is not produced with 
a significant and variable harvesting expense, is deter-
mined by the Corporation. 
"(e) YIELD DETERMINATIONS.— 
"(1) EsTABUSHMENT.—The Corporation shall establish farm 
yields for purposes of providing noninsured crop disaster assist-
ance under this section. 
"(2) ACTUAL PRODUCTION HISTORY.—The Corporation shall 
determine yield coverage using the actual production history 
of the promicer over a period of not less than the 4 previous 
consecutive crop years and not more than 10 consecutive crop 
years. Subject to paragraph (3), the jdeld for the year in which 
noninsured crop disaster assistance is sought snail be equal 
to the average of the actual production history of the producer 
during the period considered. 
"(3) ASSIGNMENT OF YIELD.—If a producer does not submit 
adequate documentation of production history to determine a 
crop yield under paragraph (2), tiie Corporation shall assign 
to the producer a yield equal to not less than 65 percent 
of the transitional yield of the producer (adjusted to reflect 
actual production reflected in the records acceptable to the 
Corporation for continuous years), as specified in regulations 
issued by the Corporation based on production history 
requirements. 
"(4) 
PROHIBITION 
ON 
ASSIGNED 
YIELDS 
IN 
CERTAIN 
COUNTIES.— 
"(A) IN GENERAL.— 
"(i) DOCUMENTATION.—If sufficient data are avail-
able to demonstrate that the acreage of a crop in 
a county for the crop year has increased by more 
than 100 percent over any year in the preceding 7 
crop years or, if data are not available, if the acreage 
of the crop in the county has increased significanuy 
fix>m the previous crop years, a producer must provide 
such detailed documentation of production costs, acres 
planted, and yield for the crop year for which benefits 
are being claimed as is required by the Corporation. 
If the Corporation determines tiiat the documentation 
P
rovided is not sufficient, the Corporation may require 
ocumenting proof that the crop, had the crop been 
harvested, coiild have been marketed at a reasonable 
price. 
"(ii) PROHIBITION.—Except as provided in subpara-
graph (B), a producer who produces a crop on a farm 
located in a county described in clause (i) may not 
obtain an assigned yield. 
"(B) EXCEPTION.—^A crop or a producer shall not be 
subject to this subsection if— 
108 STAT. 3202 
PUBLIC LAW 103-354—OCT. 13, 1994 
"(i) the planted acreage of the producer for the 
crop has been inspected by a third party acceptable 
to the Secretary; or 
"(iiXD the County Executive Director and the State 
Executive Director recommend an exemption fix)m the 
requirement to the Deputy Administrator for State 
and County Operations of the Agricultural Stabiliza-
tion and Conservation Service; and 
"(II) the Deputy Administrator approves the 
recommendation. 
"(5) LIMITATION ON RECEIPT OF SUBSEQUENT ASSIGNED 
YIELD.—^A producer who receives an assigned yield for the cur-
rent year of a natural disaster because required production 
records were not submitted to the locsil office of the Department 
shall not be eUgible for an assigned yield for the year of the 
next natural disaster imless the required production records 
of the previous 1 or more years (as applicable) are provided 
to the local office. 
"(6) YIELD VARIATIONS DUE TO DIFFERENT FARMING PRAC-
TICES.—^The Corporation shall ensure that noninsured crop 
disaster assistance accurately reflects significant yield vari-
ations due to different farming practices, such as between irri-
gated and nonirrigated acreage. 
(f) CONTRACT PAYMENTS.—A producer who has received a 
guaranteed payment for production, as opposed to deHvery, of a 
crop pursuant to a contract shall have the production of the pro-
ducer adjusted upward by the amount of the production equal 
to the amoimt of the contract payment received. 
"(g) PAYMENT OF LOSSES.—Payments for noninsured crop disas-
ter assistance losses under this section shall be made worn the 
insurance fund established under section 516. The losses shall 
not be included in calculating the premiums charged to producers 
for insurance under section 508. 
"(h) EXCLUSIONS.—Noninsured crop disaster assistance under 
this section shall not cover losses due to— 
"(1) the neglect or malfeasance of the producer, 
"(2) the Hulure of the producer to reseed to the same 
crop in those areas and under such circumstances where it 
is customary to reseed; or 
"(3) the failure of the producer to follow good farming 
practices, as determined by the Corporation.". 
SEC. 112. PAYMENT AND INCOME LIMITATIONS. 
Section 519 (7 U.S.C. 1519) (as amended by section 111) is 
further amended by adding at the end the following new subsection: 
"(h) PAYMENT AND INCOME LIMITATIONS.— 
"(1) DEFINITIONS.—As used in this subsection: 
"(A) PERSON.—^The term *person' has the meaning pro-
vided the term in regulations issued by the Secretary. 
The regulations shall conform, to the extent practicable, 
to the regulations defining the term 'person' issued under 
section 1001 of the Food Security Act of 1985 (7 U.S.C. 
1308). 
"(B) QUAUFYING GROSS REVENUES.—^The term 'qualify-
ing gross revenues' means— 
"(i) if a majority of the gross revenue of the person 
is received firom farming, ranching, and forestry oper-
PUBLIC LAW 103-354—OCT. 13, 1994 
108 STAT. 3203 
ations, the gross revenue from the farming, ranching, 
and forestry operations of the person; and 
"(ii) if less than a majority of the gross revenue 
of the person is received from farming, ranching, and 
forestry operations, the gross revenue of the person 
from all sources. 
"(2) PAYMENT LIMITATION.—^The total amount of payments 
that a person shall be entitled to receive annually under this 
title may not exceed $100,000. 
"(3) LIMITATION ON MULTIPLE BENEFITS FOR SAME LOSS.— 
If a producer who is eligible to receive benefits under cata-
strophic risk protection under section 508(b) or noninsured 
crop disaster assistance under this section is also eligible to 
receive assistance for the same loss imder any other program 
administered by the Secretary, the producer shall be required 
to elect whether to receive benefits under this titie or under 
the other program, but not both. A producer who purchases 
additional coverage under section 508(c) may also receive assist-
ance for the same loss imder other programs administered 
by the Secretary, except that the amount received for the loss 
imder the additional coverage together with the amount 
received under the other programs may not exceed the amount 
of the actual loss of the producer. 
"(4) INCOME LIMITATION.—^A person who has qualifying 
gross revenues in excess of the amount specified in section 
2266(a) of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 1421 note) (as in efiect on November 28, 
1990) during the taxable year (as determined by the Secretary) 
shall not be eligible to receive any noninsured assistance pay-
ment under this section. 
"(5) REGULATIONS.—^The Secretary shall issue regulations 
prescribing such rules as the Secretary determines necessary 
to ensure a fair and equitable application of section 1001 of 
the Food Security Act of 1985 (7 U.S.C. 1308), the general 
payment limitation regulations of the Secretary, and the limita-
tions established under this subsection.". 
SEC. 113. PRODUCER ELIGIBILITY. 
Section 520 (7 U.S.C. 1520) is amended to read as follows: 
"SEC. 520. PRODUCER ELIGmiLITY. 
"Except as otherwise provided in this titie, a producer shall 
not be denied insurance under this titie if— 
"(1) for purposes of catastrophic risk protection coverage, 
the producer is a *person' (as defined by the Secret£uy); and 
"(2) for purposes of any other plan of insurance, the pro-
ducer is 18 years of age and has a bona fide insiurable interest 
in a crop as an owner-operator, landlord, tenant, or share-
cropper.". 
SEC. 114. INELIGIBILITY FOR CATASTROPHIC RISE AND NONINSURED 
ASSISTANCE PAYMENTS. 
The Act (7 U.S.C. 1501 et seq.) is amended by adding at 
the end the following new section: 
108 STAT. 3204 
PUBLIC LAW 103-354—OCT. 13, 1994 
7 use 1521. 
"SEC. 521. INELIGmiUTY 
FOR 
CATASTROPHIC 
RISK 
AND 
NONINSXJRED ASSISTANCE PAYMENTS. 
"If the Secretary determines that a person has knowingly 
adopted a material scheme or device to obtain catastrophic risk, 
additional coverage, or noninsured assistance benefits under this 
title to which the person is not entitled, has evaded this title, 
or has acted with the purposes of evading this title, the person 
shall be ineligible to receive all benefits applicable to the crop 
year for which the scheme or device was adopted. The authority 
provided by this section shall be in addition to, £tnd shall not 
supplant, tne authority provided by section 506(n).". 
SEC. 115. ELIMINATION OF GENDER REFERENCES. 
(a) MANAGEMENT OF CORPORATION.—Section 505 (7 U.S.C. 
1505) is amended— 
(1) in subsection (a), by striking the third sentence and 
inserting "The Board shall be appointed by, and hold office 
at the pleasure of, the Secretary. The Secretary shall not be 
a member of the Board."; and 
(2) in subsection (d)— 
(A) by striking "upon him"; and 
(B) by striking "He shall be appointed by," and insert-
ing "The manager shall be appointed by,". 
(b) PERSONNEL.—Section 507 (7 U.S.C. 1507) is amended— 
(1) in subsection (a), by striking "fits he may determine: 
Provided, That" and inserting "as the Secretary may determine 
appropriate. However,"; and 
(2) in subsection (d), by striking "as he may request" £ind 
inserting "that the Secretary requests". 
(c) INDEMNITIES EXEMPT FROM LEVY.—Section 509 (7 U.S.C. 
1509) is amended by striking "or his estate" and inserting "or 
the estate of the insured". 
7 use 1508 note. SEC. 118. PREVENTED PLANTING. 
(a) IN GENERAL.—Effective for the 1994 crop year, a producer 
described in subsection (b) shall receive compensation under the 
prevented planting coverage pohcy provision described in subsection 
(bXl)by-
(1) obtaining fix)m the Secretarv of Agriculture the 
appHcable amount that is payable unaer the conserving use 
program described in subsection (b)(4); and 
(2) 
obtaining 
from 
the 
Federal 
Crop 
Insurance 
Corporation the amount that is equal to tne difference 
between— 
(A) the amount that is payable under the conserving 
use program; and 
(B) the amount that is payable under the prevented 
planting coverage poUcy. 
(b) ELIGIBLE PRODUCERS.—Subsection (a) shaU apply to a pro-
ducer who— 
(1) purchased a prevented planting poHcy for the 1994 
crop year fix)m the Federal Crop Insurance Corporation prior 
to the spring sales closing date for the 1994 crop yesir; 
(2) is unable to plant a crop due to major, widespread 
flooding in the Midwest, or excessive ground moisture, that 
occurred prior to the spring sales closing date for the 1994 
crop year; 
PUBLIC LAW 103-354—OCT. 13, 1994 
108 STAT. 3205 
(3) had a reasonable expectation of planting a crop on 
the prevented planting acreage for the 1994 crop year; and 
(4) participates in a conserving use program established 
for the 1994 crop of wheat, feed grains, upland cotton, or 
rice established under section 107B(c)(l)(E), 105B(c)(l)(E), 
103B(c)(l)(D), or 101B(c)(l)(D), respectively, of the Agricultural 
Act of 1949 (7 U.S.C. 1445b-3a(cXl)(E), 1444f(c)(lXE), 1444-
2(c)(1)(D), or 1441-2(c)(l)(D)). 
(c) OILSEED PREVENTED PLANTING PAYMENTS.— 
(1) IN GENERAL.—Effective for the 1994 crop year, a pro-
ducer of a crop of oilseeds (as defined in section 205(a) of 
the Agricultural Act of 1949 (7 U.S.C. 1446f(a))) shall receive 
a prevented planting payment for the crop if the requirements 
of paragraplis (1), (2), and (3) of subsection (b) are satisfied. 
(2) SOURCE OF PAYMENT.—^The total amount of payments 
required under this subsection shall be made by the Federal 
Crop Insurance Corporation. 
(d) PAYMENT.—A pajonent imder this section may not be made 
before October 1, 1994. 
SEC. 117. REPORT ON IMPROVING DISSEMINATION OF CROP ESfSUR- 7 USC 1508 note. 
ANCE INFORMATION. 
Not later than 180 days after the date of enactment of this 
Act and at the end of each of the 2 1-year periods thereafter, 
the Federal Crop Insurance Corporation shall submit a report to 
Congress containing a plan to implement a soimd program for 
producer education regarding tiie crop insurance program and for 
the dissemination of crop insurance information to producers, as 
required by section 508(a)(5) of the Federal Crop Insurance Act 
(as amended by section 106). 
SEC. 118. CROP INSURANCE PROVIDER EVALUATION. 
7 USC 1506 note. 
(a) IN GENERAL.—The Comptroller General of the United States 
and the Federal Crop Insurance Corporation (referred to in this 
section as the "Corporation") shsdl jointiy evaluate the financial 
arrangement between the Corporation and approved insurance 
providers to determine the quaHty, costs, and efficiencies of provid-
ing the benefits of multiple peril crop insurance to producers of 
agricultural conunodities covered under the Federal Crop Insurance 
Act (7 U.S.C. 1501 et seq.). 
(b) COLLECTION OF INFORMATION AND PROPOSALS.—The Cor-
poration shall require private insurance providers and agents to 
supply, and the private insursince providers and agents shall supply, 
records and information necessaiy to make the determinations and 
evaluations required under this section. The Corporation shall 
solicit fix)m the approved insurance providers and agents proposals 
for modifying or altering the requirements, regulations, procedures, 
and processes related to implementing the Federal Crop Insurance 
Act to reduce the operating and administrative costs of the providers 
and agents. 
(c) INITIAL REPORT.—Not later than 180 days after receipt 
of information and cost-reduction proposals under subsection (b), 
the Corporation shall evaluate me information and proposals 
obtained £tnd report the results of the evaluation to the Conunittee 
on Agriculture of the House of Representatives and the Committee 
on Agriculture, Nutrition, and Forestry of tiie Senate. 
(d) FINAL REPORT.—Not later than 2 years after the date of 
enactment of this Act, the Comptroller General and the Corporation 
108 STAT. 3206 
PUBLIC LAW 103-354—OCT. 13, 1994 
shall submit a final report that provides the evaluation required 
under subsection (a) to the Committee on Agriculture of the House 
of Representatives and the Conmiittee on Agriculture, Nutrition, 
and Forestry of the Senate. In making the evaluation, the Comptrol-
ler General and the Corporation shall— 
(1) consider the changes made by the Corporation in 
response to increased program participation resulting from the 
enactment of this Act; 
(2) include an evaluation and opinion of the acciu*acy and 
reasonableness of— 
(A) tiie average actual costs for approved insurance 
providers to deUver multiple peril crop insurance; 
(B) the cost per policy of complying with the require-
ments, regulations, procedures, and processes of the Fed-
eral Crop Insurance Act; 
(C) the cost differences for various provider firm sizes 
and any business dehvered by the Federal Grovemment; 
(D) the adequacy of the standard reimbursement for 
potential new providers; and 
(E) the identification of any new costs related to the 
enactment of this Act not previously identified in the 
information reported by the providers; 
(3) compare deUvery costs of multiple peril crop insurance 
to other insurance coverages that the provider may sell and 
determine the extent, if any, to which Euiy funds provided 
to carry out the Federal Crop Insurance Act are being used 
to fund any otiier business enterprise operated by the provider; 
(4)(A) assess alternative methods for reimbm^ing providers 
for reasonable and necessary expenses associated with deUvery 
of multiple peril crop insurance; 
(B) recommend changes tmder this paragraph that reason-
ably demonstrate the need to achieve the greatest operating 
efficiencies on the part of the provider and the Corporation 
has been recognized; and 
(C) identify areas for improved operating efficiencies, if 
£iny, in the requirements made by the Corporation for compU-
ance and program integrity; 
(5) assess the potential for alternative forms of reinsiu^nce 
arrangements for providers of different firm sizes, taking into 
consideration— 
(A) the need to achieve a reasonable return on the 
capital of the provider compared to other lines of insurance; 
(B) the relative risk borne by the provider for the 
different lines of insurance; 
(C) the availability and price of commercial reinsur-
ance; and 
(D) any additional costs that may be incurred by the 
Federal Grovemment in carrying out the Federal Crop 
Insurance Act; and 
(6) include an analysis of the effect of the current or pro-
gosed reinsurance arrangements on providers having different 
usiness levels. 
(e) INFORMATION.— 
(1) PRIVACY.—In conducting the evaluation required by 
this section, the Comptroller General and the Corporation shall 
maintain the privacy of proprietary information. 
PUBLIC LAW 103-354—OCT. 13, 1994 
108 STAT. 3207 
., 
(2) SuBPOENAS.^The Comptroller General shall have the 
power to subpoena information relevant to the evaluation 
required by tms section fix)m any private insurance provider. 
The Comptroller General shall allow the Corporation access 
to the information subpoenaed taking into consideration the 
necessity of preserving the privacy of proprietary information. 
SEC. 119. CONFORMING AMENDMENTS. 
(a) PRICE SUPPORT PROGRAMS.— 
(1) IN GENERAL.—Title IV of the Agricultural Act of 1949 
(7 U.S.C. 1421 et seq.) is amended by adding at the end the 
following new section: 
"SEC. 427. CROP INSURA14CE REQUIREMENT. 
7 USC 1433f. 
"As a condition of receiving any benefit (including payments) 
under title I or II for each of the 1995 and subsequent crops 
of tobacco, rice, extra long staple cotton, upland cotton, feed grains, 
wheat, peanuts, oilseeds, and sugar, a producer must obtain at 
least catsistrophic risk protection insurance coverage under section 
508 of the Federal Crop Insurance Act (7 U.S.C. 1508) for the 
crop and crop year for which the benefit is sought, if the coverage 
is offered by tiie Corporation.". 
(2) RICE.—Section lOlB(c) of such Act (7 U.S.C. 1441-
2(c)) is amended— 
(A) in paragraph (1), by striking subparagraph (F); 
and 
(B) by striking paragraph (2) and inserting the follow-
ing new paragraph: 
"(2) CROP INSURANCE REQUIREMENT.—A producer shall 
obtain catastrophic risk protection insurance coverage in accord-
ance with section 427.". 
(3) UPLAND COTTON.—Section 103B(c) of such Act (7 U.S.C. 
1444r-2(c)) is amended— 
(A) in paragraph (1), by striking subparagraph (F); 
and 
(B) by striking paragraph (2) and inserting the follow-
ing new paragraph: 
"(2) CROP INSUTIANCE REQUIREMENT.—A producer shall 
obtain catastrophic risk protection insurance coverage in accord-
ance with section 427.". 
(4) FEED GRAINS.—Section 105B(c) of such Act (7 U.S.C. 
1444f(c)) is amended— 
(A) in paragraph (1), by striking subparagraph (G); 
and 
(B) by striking paragraph (2) Eind inserting the follow-
ing new paragraph: 
"(2) CROP INSURANCE REQUIREMENT.—A producer shall 
obtain catastrophic risk protection insurance coverage in accord-
ance with section 427.". 
(5) WHEAT.—Section 107B(c) of such Act (7 U.S.C. 1445b-
3a(c)) is amended— 
(A) in paragraph (1), by striking subparagraph (G); 
and 
(B) by striking paragraph (2) and inserting the follow-
ing new paragraph: 
"(2) CROP INSURANCE REQUIREMENT.—^A producer shall 
obtain catastrophic risk protection insurance coverage in accord-
ance with section 427.". 
108 STAT. 3208 
PUBLIC LAW 103-354—OCT. 13, 1994 
(6) DISASTER PAYMENTS.—Section 208 of such Act (7 U.S.C. 
14461) is repealed. 
(b) FARMERS HOME ADMINISTRATION PROGRAMS.—The ConsoH-
dated Farm and Rural Development Act (7 U.S.C. 1921 et seq.) 
is amended by adding at the end the following new section: 
7 u s e 2008f. 
"SEC. 371. CROP INSURANCE REQUIREMENT. 
"(a) IN GENERAL.—As a condition of obtaining any benefit 
(including a direct lo£in, lo£in guarantee, or payment) described 
in subsection (b), a borrower must obtain at least catastrophic 
risk protection insurance coverage under section 508 of the Federal 
Crop Insurance Act (7 U.S.C. 1508) for the crop and crop year 
for which the benefit is sought, if the coverage is offered by the 
Corporation. 
"(b) APPUCABLE BENEFITS.—Subsection (a) shall apply to— 
"(1) a farm ownership loan (FO) imder section 303; 
"(2) an operating loan (OL) imder section 312; and 
"(3) an emergency loan (EM) under section 321.". 
(c) DISASTER ASSISTANCE.—Subtitle B of title XXII of the Food, 
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 1421 
note) is amended by striking chapter 3. 
Effective dates. 
(d) EMERGENCY APPROPRIATIONS.— 
(1) IN GENERAL.—Effective January 1, 1995, section 
251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit 
Control Act of 1985 (2 U.S.C. 901(b)(2)(D)(i)) is amended by 
adding at the end the following new sentence: 'This subpara-
graph shall not apply to appropriations to cover agricultural 
crop disaster assistance.". 
(2) EMERGENCY LEGISLATION.—Effective January 1, 1995, 
section 252(e) of such Act (2 U.S.C. 902(e)) is amended by 
adding at the end the following new sentence: 'This subsection 
shall not apply to direct spending provisions to cover agricul-
tural crop disaster assistance.". 
(e) FALSE STATEMENTS.—Section 1014 of titie 18, United States 
Code, is amended by inserting "or a company the Corporation 
reinsures" after "Federal Crop Insurance Corporation". 
(f) TECHNICAL AMENDMENTS.— 
(1) The first sentence of section 506(d) (7 U.S.C. 1506(d)) 
is amended by striking "508(f)" and inserting "508(j)". 
(2) The last sentence of section 507(c) (7 U.S.C. 1507(c)) 
is amended by striking "508(b)" and inserting "508(h)". 
(3) Section 518 (7 U.S.C. 1518) is amended by striking 
"(k)" and inserting "(m)". 
7 use 1502 note. 
SEC. 120. EFFECTIVE DATE. 
Except as otherwise provided in this titie, this titie and the 
amendments made by this titie shall become effective on the date 
of enactment of this Act and shgdl apply to the provision of crop 
insurance under the Federal Crop Insurance Act (7 U.S.C. 1501 
et seq.) beginning with the 1995 crop year. With respect to the 
1994 crop year, tiie Federal Crop Insurance Act (as in effect on 
the day before the date of enactment of this Act) shall continue 
to apply. 
PUBLIC LAW 103-354—OCT. 13, 1994 
TITLE II—DEPARTMENT OF 
108 STAT. 3209 
Department of 
Agriculture 
A G R I C U L T U R E 
R E O R G A N I Z A T I O N 
Reorganization 
Act of 1994. 
SEC. 201. SHORT TITLE. 
(a) SHORT TITLE.—This title may be cited as the "Department 
of Agriculture Reorganizatioii Act of 1994". 
SEC. 202. PURPOSE. 
The purpose of this title is to provide the Secretary of Agri-
culture with the necessary authority to streamline and reorganize 
the Department of Agriculture to achieve greater 
efficiency, 
effectiveness, and economies in the organization and management 
of the programs and activities carried out by the Department. 
SEC. 203. DEFINrnONS. 
Except where the context requires otherwise, for purposes of 
this title: 
(1) DEPARTMENT.—^The term "Department" means the 
Department of Agriculture. 
(2) NATIONAL APPEALS DIVISION.—The term "National 
Appeals Division" means the National Appeals Division of the 
Department estabUshed under section 272. 
(3) SECRETARY.—The term "Secretary" means the Secretary 
of Agriculture. 
(4) FUNCTION.—The term "function" means an administra-
tive, financial, or regulatory activity of an agency, office, officer, 
or employee of the Department 
Subtitle A—General Reorganization 
Authorities 
7 use 6901 note. 
7 u s e 6901. 
7 use 6902. 
SEC. 211. TRANSFER OF DEPARTMENT FUNCTIONS TO SECRETARY OF 
AGRICULTURE. 
(a) TRANSFER OF FUNCTIONS.—Except as provided in subsection 
(b), there are transferred to the Secretary of Agriculture aU fiinc-
tions of all agencies, offices, officers, and employees of the Depart-
ment that are not already vested in the Secretary on the date 
of the enactment of this Act. 
(b) EXCEPTIONS.—Subsection (a) shall not apply to the following 
functions: 
(1) Functions vested by subchapter II of chapter 5 of titie 
5, United States Code, in administrative law judges employed 
by the Department 
(2) Functions vested by the Inspector General Act of 1978 
(5 U.S.C. App.) in the Inspector General of the Department. 
(3) Functions vested by chapter 9 of titie 31, United States 
Code, in the Chief Financial Officer of the Department. 
(4) Fimctions vested in the corporations of the Department 
or the boards of directors and officers of such corporations. 
(5) Functions vested in the Alternative Agric\iltural 
Research and Commercialization Board by the Alternative Agri-
cultural Research and Commerciahzation Act of 1990 (7 U.S.C. 
5901 et seq.). 
7 use 6911. 
108 STAT. 3210 
PUBLIC LAW 103-354—OCT. 13, 1994 
7 use 6912. 
SEC. 212. AUTHORITY OF SECRETARY TO DELEGATE TRANSFERRED 
FUNCTIONS. 
(a) DELEGATION OF AUTHORITY.— 
(1) DELEGATION AUTHORIZED.—Subject to paragraph (2), 
' 
the Secretary may delegate to any agency, office, officer, or 
employee of the Department the authority to perform any func-
tion transferred to the Secretaiy tmder section 211(a) or any 
other function vested in the Secretary as of the date of the 
enactment of this Act The authority provided in the preceding 
sentence includes the authority to establish, consoUdate, alter, 
or discontinue any agency, office, or other administrative unit 
of the Department. 
(2) CONDITION ON AUTHORITY.—The delegation authority 
provided by paragraph (1) shall be subject to— 
(A) sections 232, 251(d), 273, and 304 and subsections 
(a) and (b)(1) of section 261; 
(B) sections 502 and 503 of the Agricultural Trade 
Act of 1978 (7 U.S.C. 5692 and 5693); and 
(C) section 8(b)(5) of the Soil Conservation and Domes-
tic Allotment Act (16 U.S.C. 590h(b)(5)). 
(b) COST-BENEFIT ANALYSIS REQUIRED FOR NAME CHANGE.— 
(1) ANALYSIS REQUIRED.—^Except as provided in paragraph 
(2), the Secretsiry shall conduct a cost-benefit analysis before 
changing the name of any agency, office, division, or other 
unit of the Department to ensure that the benefits to be derived 
fix)m changing the name of the agency, office, division, or other 
imit outweigh the expense of executing the name chsmge. 
(2) EXCEPTION.—Paragraph (1) shall not apply with respect 
to any name change required or authorized by this titie. 
(c) PuBUC COMMENT ON PROPOSED REORGANIZATION.—To the 
extent that the implementation of the authority provided to the 
Secretary by this title to reorganize the Department involves the 
creation of new agencies or offices within tne Department or the 
delegation of m^or functions or major groups of fiinctions to any 
aeency or office of the Department (or tiie officers or employees 
of such agency or office), the Secretary shall, to the extent consid-
ered practicable by the Secretaiy— 
(1) give appropriate advance pubUc notice of the proposed 
reorganization action or delegation; and 
(2) Eiffbrd appropriate opportunity for interested parties 
to comment on the proposed reorganization action or delegation. 
(d) INTERAGENCY TRANSFER OF RECORDS, PROPERTY, PERSON-
NEL, AND FUNDS.— 
(1) RELATED TRANSFERS.—Subject to paragraph (2), as part 
of the transfer or delegation of a function of the Department 
made or authorized by this titie, the Secretary may trEuisfer 
within the Department— 
(A) any of the records, property, or personnel affected 
by the transfer or delegation of the ranction; and 
(B) unexpended balances (available or to be made avail-
able for use in connection with the transferred or delegated 
function) of appropriations, allocations, or other funds of 
the Department. 
(2) APPLICABLE LAW RELATING TO FUNDS TRANSFER.—Sec-
tion 1531 of titie 31, United States Code, shall apply to any 
transfer of funds under paragraph (1). 
PUBLIC LAW 103-354—OCT. 13, 1994 
108 STAT. 3211 
(e) EXHAUSTION OF ADMINISTRATIVE APPEALS.—Notwithstand-
ing any other provision of law, a person shall exhaust aU adminis-
trative appeal procedures established by the Secretary or required 
by law before the person may bring an action in a court of competent 
jurisdiction agsiinst— 
(1) the Secretary; 
(2) the Department; or 
(3) an agency, office, officer, or employee of the Department. 
SEC. 213. REDUCTIONS IN NUMBER OF DEPARTMENT PERSONNEL. 
7 USC 6913. 
(a) DEFINITIONS.—For purposes of this section: 
(1) 
HEADQUARTERS 
OFFICES.—The term **headg[uarters 
offices", with respect to agencies, offices, or other administrative 
units of the Department, means the offices, functions, £ind 
employee positions that are located or performed— 
(A) in Washington, District of Columbia; or 
(B) in such other locations as are identified by the 
Secretary for purposes of this section. 
(2) FIELD STRUCTURE.—The term "field structure" means 
the offices, functions, and employee positions of aU agencies, 
offices, or other administrative units of the Department, other 
than the headquarters offices, except that the term does not 
include State, county, or sirea committees established imder 
section 8(bX5) of the Soil Conservation and Domestic Allotment 
Act (16 U.S.C. 590h(b)(5)). The term includes the physical and 
geographic locations of such agencies, offices, or other adminis-
trative units. 
(b) NUMBER OF REDUCTIONS REQUIRED.—The Secretary shall 
achieve Federal employee reductions of at least 7,500 staff years 
within the Department by the end of fiscal year 1999. Reductions 
in the number of fuU-time equivalent positions within the Depart-
ment achieved under section 5 of the Federal Workforce Restructur-
ing Act of 1994 (PubUc Law 103-226; 108 Stat. 115; 5 U.S.C. 
3101 note) shall be counted toward the employee reductions 
required under this section. 
(c) 
EMPHASIS ON HEADQUARTERS OFFICES REDUCTIONS.—^In 
achieving the employee reductions required by subsection G)), the 
Secretary shall pursue a goal so that the percentage of the total 
niunber of employee staff years reduced in headquarters offices 
is at least twice the percentage of the total number of employee 
staff years reduced in the field structure. 
(d) SCHEDULE.—^The personnel reductions in headquarters 
offices and in the field structure should be accomplished concur-
rentiy in a manner determined by the Secretary. 
SEC. 214. CONSOLIDATION OF HEADQUARTERS OFFICES. 
7 USC 6914. 
Subject to the avaUabiHty of appropriated funds for this pur-
pose, the Secretary shall develop and carry out a plan to consoUdate 
offices located in Washington, District of Columbia, of agencies, 
offices, and other administrative units of the Department. 
SEC. 215. COMBINATION OF FIELD OFFICES. 
7 USC 6915. 
(a) COMBINATION OF OFFICES REQUIRED.—Where practicable 
and to the extent consistent with efficient, effective, and improved 
service, the Secretary shall combine field offices of agencies within 
the Department to reduce personnel and duplicative overhead 
expenses. 
79-194 0-95-19:QL3Part4 
108 STAT. 3212 
PUBLIC LAW 103-354—OCT. 13, 1994 
(b) JOINT USE OF RESOURCES AND OFFICES REQUIRED,—When 
two or more agencies of the Department share a common field 
ofiice, the Secretary shall reqiiire the agencies to jointly use office 
space, equipment, office supplies, administrative personnel, and 
clerical personnel associated with that field office. 
7 u s e 6916. 
SEC. 216. IMPROVEMENT OF E^FORMATION SHARING. 
Whenever the Secretary procures or uses computer systems, 
as may be provided for in advance in appropriations Acts, the 
Secretary shall do so in a manner that enhances efficiency, 
productivity, and cUent services and is consistent with the goal 
of promoting computer information sharing among agencies of the 
Department. 
7 use 6917. 
SEC. 217. REPORTS BY THE SECRETARY. 
(a) IN GENERAL.—Subject to subsection (b), notwithstanding 
any other provision of law, the Secretary may, but shall not be 
required to, prepare and submit any report solely to the Committee 
on Agriculture of the House of Representatives and the Committee 
on A^culture, Nutrition, and Forestry of the Senate. 
(b) LIMITATION.—^For each fiscal year, the Secretary may not 
prepare and submit more than 30 reports referred to in subsection 
(a). 
(c) SELECTION OF REPORTS.—In consultation with the Commit-
tee on Agriculture of the House of Representatives and the Com-
mittee on Agriculture, Nutrition, and Forestry of the Senate, the 
Secretary shaU determine which reports, if any, the Secretary will 
prepare and submit in accordance with subsection (h). 
7 use 6918. 
SEC. 218. ASSISTANT SECRETARIES OF AGRICULTURE. 
(a) AUTHORIZATION.—^The Secretary is authorized to estabUsh 
in the Department the positions of— 
(1) Assistant Secretary of Agriculture for Congressional 
Relations; 
(2) Assistant Secretary of Agriculture for Administration; 
and 
(3) Assistant Secretary of Agriculture for Marketing and 
Regulatory Programs. 
(b) CONFIRMATION REQUIRED.—If the Secretary establishes any 
position of Assistant Secretary authorized under subsection (a), 
the Assistant Secretary shall be appointed by the President, by 
and with the advice and consent of the Senate. 
(c) SUCCESSION.—Any official who is serving as Assistant Sec-
retary of Agriculture for Administration or Assistant Secretary of 
Agriculture for Congressional Relations on the date of the enact-
ment of this Act and who was appointed as such Assistant Secretary 
by the President, by and with me advice and consent of the Senate, 
snail not be required to be reappointed under subsection (b) to 
the successor position authorized under subsection (a) if the Sec-
retary estabHsnes the position, and the official occupies the new 
position, within 180 days after the date of the enactment of this 
Act (or such later date set by the Secretary if Htigation delays 
rapid succession). 
(d) EXECUTIVE SCHEDULE.—Section 5315 of titie 5, United 
States Code, is amended by striking "Assistant Secretaries of Agri-
culture (7)." and inserting "Assistant Secretaries of Agriculture 
(3).". 
PUBLIC LAW 103-354—OCT. 13, 1994 
108 STAT. 3213 
(e) REPEAL OF SUPERSEDED PROVISIONS REGARDING ASSISTANT 
SECRETARIES.—^The foUowing provisions of 
law are repealed: 
(1) Section 2 of Reorganization Plan No. 2 of 1953 (5 
U.S.C. Anp; 7 U.S.C. 2201 note). 
(2) Section 2 of the Act entitled "An Act to enlarge the 
powers and duties of the Department of Agriculture and to 
create an Executive Department to be known as the Depart-
ment of Agriculture.", approved February 9, 1889 (7 ILS.C. 
2212). 
(3) The first paragraph designated "OFFICE OF THE SEC-
RETARY:" under the heading T)EPARTMENT OF AGRI-
CULTURE" of the Act entitlea "An Act making appropriations 
for the Department of Agriculture for the fiscal year ending 
June thirtieth, nineteen hundred and seven.", approved June 
30,1906 (34 Stat. 670; 7 U.S.C. 2212). 
(4) Section 604(a) of the Rural Development Act of 1972 
(7 U.S.C. 2212a). 
(5) Section 2 of PubUc Law 94^561 (7 U.S.C. 2212b). 
(6) Section 8(a) of PubHc Law 97-325 (7 U.S.C. 2212c). 
(7) Section 1413(d) of the National Agricultural Research, 
Extension, and Teaching PoUcy Act of 1977 (7 U.S.C. 3128(d)). 
SEC. 219. PAY INCREASES PROHIBITED. 
7 USC 6919. 
The compensation of any officer or employee of the Department 
on the date of the enactment of this Act shall not be increeised 
as a result of the enactment of this title. 
Subtitle B—^Farm and Foreign Agricultural 
Services 
SEC. 225. UNDER SECRETARY OF AGRICULTURE FOR FARM AND FOR- 
7 USC 6931. 
EIGN AGRICULTURAL SERVICES. 
(a) AUTHORIZATION.—The Secretary is authorized to estabUsh 
in the Department the position of Unaer Secretary of Agriculture 
for Farm and Foreign Agricultural Services. 
(b) CONFIRMATION REQUIRED.—^If the Secretary estabHshes the 
position of Under Secretary of Agriculture for Farm and Foreign 
Agricultural Services authorized under subsection (a), the Under 
Secretaiy shall be appointed by the President, by and with the 
advice and consent of the Senate. 
(c) FUNCTIONS OF UNDER SECRETARY.— 
(1) PRINCIPAL FUNCTIONS.—Upon establishment, the Sec-
retary shall delegate to the Under Secretary of Agriculture 
for Farm and Foreign Agricultural Services those functions 
under the jurisdiction of the Department that are related to 
farm and foreign agricultural services. 
(2) ADDITIONAL FUNCTIONS.—The Under Secretary of Agri-
culture for Farm and Foreign Agricultural Services shall per-
form such other functions as may be required by law or 
prescribed by the Secretary. 
(d) SUCCESSION.—^Any official who is serving as Under Secretary 
of Agriculture for International Affairs and Commodity Programs 
on the date of the enactment of this Act and who was appointed 
by the President, by and with the advice and consent of the Senate, 
shall not be required to be reappointed under subsection (b) to 
the successor position authorizea under subsection (a) if the Sec-
108 STAT. 3214 
PUBLIC LAW 103-354—OCT. 13, 1994 
retary establishes the position, and the official occupies the new 
position, within 180 days after the date of the enactment of this 
Act (or such later date set by the Secretary if litigation delays 
rapid succession). 
(e) CONFORMING AMENDMENTS.— 
(1) EXISTING POSITION.—Section 501 of the Agricultural 
Trade Act of 1978 (7 U.S.C. 5691), relating to the Under Sec-
retary of Agriculture for International Affairs and Commodity 
Programs, is repealed. 
(2) EXECUTIVE SCHEDULE.—Section 5314 of title 5, United 
States Code, is amended by striking **Under Secretary of Agri-
culture for International Affairs and Commodity Programs." 
and inserting *TJnder Secretary of Agriculture for Farm and 
Foreign Agrictdtural Services.". 
7 use 6932. 
SEC. 22ft. CONSOLIDATED FARM SERVICE AGENCY. 
(a) ESTABLISHMENT.—^The Secretary is authorized to establish 
and maintain in the Department a ConsoUdated Farm Service 
Agency. 
(b) FUNCTIONS OF CONSOUDATED FARM SERVICE AGENCY.— 
If the Secretary establishes the Consolidated Farm Service Agency 
under subsection (a), the Secretary is authorized to assign to the 
Agency jurisdiction over the following functions: 
(1) Agricultural price and income support programs, 
production at^justment programs, and related programs. 
(2) Ceneral supervision of the Federal Crop Insurance 
CorporatioiL 
(3) Agricultural credit programs assigned before the date 
of the enactment of this Act by law to the Farmers Home 
Adnunistration (including farm ownership and operating, emer-
gency, and disaster loan programs) and other lending programs 
for agricultural producers and others engaged in the production 
of agricultural conunodities. 
(4) Subchapter B of chapter 1 of subtitle D of title XII 
of the Food Security Act of 1985 (16 U.S.C. 3831-3836) and 
the agricultural conservation program under the Soil Conserva-
tion and Domestic Allotment Act (16 U.S.C. 590g et seq.). 
(5) Such other ftinctions as the Secretary considers appro-
priate, except for those programs assigned by the Secretary 
to the Natural Resources Conservation Service or another 
agency of the Department under section 246(b). 
(c) SPECIAL CONCURRENCE REQUIREMENTS FOR CERTAIN FUNC-
TIONS.—^In carrying out the programs specified in subsection (b)(4), 
the Secretary shall— 
(1) acting on the recommendations of the ConsoHdated 
Farm Service Agenpy, with the concurrence of the Natural 
Resources Conservation Service, issue regulations to CEury out 
such programs; 
(2) ensiu^ that the ConsoUdated Farm Service Agency, 
in establishing poUcies, priorities, and guidelines for such pro-
grguns, does so with the concurrence of the Natural Resources 
Conservation Service at national, State, and local levels; 
(3) ensure that, in reaching such concurrence at the local 
level, the Natural Resources Conservation Service works in 
cooperation with Soil and Water Conservation Districts or simi-
lar organizations established under State law; 
PUBLIC LAW 103-354—OCT. 13, 1994 
108 STAT. 3215 
(4) ensure that officials of county and area committees 
established under section 8(b)(5) of the Soil Conservation and 
Domestic Allotment Act (16 U.S.C. 590h(b)(5)) meet annually 
with officials of such Districts or similar organizations to con-
sider local conservation priorities and guidelines; and 
(5) take steps to ensure that the concurrence process does 
not iuterfere wim the effective delivery of such programs. 
(d) JURISDICTION OVER CONSERVATION PROGRAM APPEALS.— 
(1) IN GENERAL.—Until such time £is an adverse decision 
described in this paragraph is referred to the National Appeals 
Division for consideration, the ConsoUdated Farm Service 
Agencv shall have initial jurisdiction over any administrative 
appeal resulting from an adverse decision made imder title 
XII of the Food Security Act of 1985 (16 U.S.C. 3801 et seq.), 
including an adverse decision involving technical determina-
tions made by the Natural Resoiuxes Conservation Service. 
(2) 
TREATMENT 
OF 
TECHNICAL 
DETERMINATION.—^With 
respect to administrative appeals involving a technical deter-
mination made by the Natural Resources Conservation Service, 
the Consolidated Farm Service Agency, by rule with the concur-
rence of the Natural Resources Conservation Service, shall 
estabUsh procediu^s for obtaining review by the Natural 
Resources Conservation Service of me technical determinations 
involved. Such rules shall ensure that technical criteria estab-
lished by the Natural Resources Conservation Service shall 
be used by the Consolidated Farm Service Agency as the basis 
for any decisions regarding technical determinations. If no 
review is requested, the technical determination of the Natural 
Resources Conservation Service shall be the technical basis 
for any decision rendered by a county or area committee estab-
lished imder section 8(b)(5) of the Soil Conservation and Domes-
tic Allotment Act (16 U.S.C. 590h(b)(5)). If the committee 
requests a review by the Natural Resources Conservation Serv-
ice of a wetlands determination of the Service, the ConsoUdated 
Farm Service Agency shall consult with other Federal agencies 
whenever required by law or under a memorandum of agree-
ment in existence on the date of the enactment of this Act. 
(3) REINSTATEMENT OF PROGRAM BENEFITS.—Rules issued 
to carry out this subsection shall provide for the prompt 
reinstatement of benefits to a producer who is determined 
in an administrative appeal to meet the requirements of title 
XII of the Food Security Act of 1985 applicable to the producer. 
(e) USE OF FEDERAI. AND NON-FEDERAL EMPLOYEES.— 
(1) USE AUTHORIZED.—In the implementation of programs 
and activities assigned to the Consolidated Farm Service 
^ency, the Secretary may use interchangeably in local offices 
of the Agency both Federal employees of the Department and 
non-Federal employees of county and area committees estab-
lished under section 8(b)(5) of the Soil Conservation and Domes-
tic Allotment Act (16 U.S.C. 590h(b)(5)). 
(2) EXCEPTION.—Notwithstanding paragraph (1), no person-
nel action (as defined in section 2302(aX2)(A) of title 5, United 
States Code) may be taken with respect to a Federal employee 
imless such action is taken by another Federal employee. 
(f) COLLOCATION.—To tiie maximum extent practicable, the 
Secretary shall collocate county offices of the ConsoUdated Farm 
108 STAT. 3216 
PUBLIC LAW 103-354~-OCT. 13, 1994 
Service Agency with county offices of the Natural Resources Con-
servation Service in order to— 
(1) maximize savings from shared equipment, office space, 
and administrative support; 
(2) simplify paperwork and regulatory requirements; 
(3) provide improved services to agricultural producers and 
landowners affected by programs administered by the Agency 
and the Service; and 
(4) achieve computer compatibility between the Agency and 
the Service to maximize efficiency and savings. 
(g) 
SAVINGS 
PROVISION.—For iDurposes of subsections (c) 
through (f) of this section: 
(1) A reference to the "Consolidated Farm Service Agency" 
iQcludes any other office, agencj^, or administrative unit of 
the Department assigned the mnctions authorized for the 
ConsoUaated Farm Service Agency under this section. 
(2) A reference to the "Natural Resources Conservation 
Service" includes any other office, agency, or administrative 
imit of the Department assigned the functions authorized for 
the Natural Resources Conservation Service under section 
246(b). 
(h) CONFORMING AMENDMENT.—Section 331(a) of the Consoli-
dated Farm and Rural Development Act (7 U.S.C. 1981(a)) is 
amended by striking "assets to tne Farmers Home Administration" 
and aU tiiat foUows through the period at the end of the subsection 
and inserting "assets to such officers or agencies of the Department 
of Agriculture as the Secretary considers appropriate.". 
SEC. 227. STATE, COUNTY, AND ABEA COMMITTEES. 
(a) COMMITTEES UNDER THE SOIL CONSERVATION AND DOMESTIC 
ALLOTMENT ACT.—Section 8(b) of tihe Soil Conservation and Domes-
tic Allotment Act (16 U.S.C. 590h(b)) is amended— 
(1) by inserting "(1)" after "(b)"; 
(2) by designating the second through eighth undesignated 
paragrapns as paragraphs (2) through (8), respectively; and 
(3) by striking paragraph (5) (as so designated) and insert-
ing the following new paragraph: 
"(5) STATE, COUNTY, AND AREA COMMITTEES.— 
"(A) APPOINTMENT OF STATE COMMITTEES.—The Secretary 
shall appoint in each State a State committee composed of 
not fewer than 3 nor more than 5 members who are fairly 
representative of the farmers in the State. The members of 
a State committee shall serve at the pleasure of the Secretary 
for such term as the Secretary may establish. 
"(B) ESTABLISHMENT OF COUNTY, AREA, OR LOCAL COMMIT-
TEES.—(i) In each county or area in which activities are carried 
out under this section, the Secretary shall estabUsh a county 
or area committee. 
"(ii) Any such conmiittee shall consist of not fewer than 
3 nor more than 5 members who are fairly representative 
of the agricultural producers in the county or area and who 
shall be elected by the agricultural producers in such county 
or area under such procedures as the Secretaiy may prescribe. 
"(iii) The Secretary may designate local administrative 
areas within the county or larger area covered by a committee 
estabHshed under clause (i). Only agricultural producers within 
a local administrative area who participate or cooperate in 
PUBLIC LAW 103-354—OCT. 13, 1994 
108 STAT. 3217 
programs administered within their area shall be eligible for 
nomination and election to the local conunittee for that area, 
under such regulations as the Secretary may prescribe. 
"(iv) The Secretary shall solicit and accept nominations 
fix)m organizations representing the interests of socially dis-
advantaged groups (as definea in section 355(e)(1) of the 
Consolidated Farm and Rural Development Act (7 U.S.C. 
2003(e)(1)). 
"(v) Members of each coimty, area, or local conmiittee shall 
serve for terms not to exceed 3 years. 
"(C) TERMINATION OR COMBINATION OF COMMITTEES.—^The 
Secretary may not terminate a county or area committee or 
combine or consolidate two or more coimty or sirea committees 
imless— 
"(i) the Secretaiy first notifies the committee or 
committees involved oi the proposed action; and 
"(ii) the State committee of the State in which the 
afiected counties are located approves of such action in 
a vote taken after the end of the 60-day period beginning 
on the date the notification is received. 
"(D) USE OF coMMiTTEES.^The Secretary shall use the 
services of such committees ia carrying out programs under 
this section and the agricultural credit programs under the 
Consolidated Farm and Rural Development Act (7 U.S.C. 1921 
et seq.) and in considering administrative appeals as provided 
by section 226(d) of the Department of Agriculture Reorganiza-
tion Act of 1994. The Secretary may use the services of such 
committees in carrying out programs under other authorities 
administered by the SecretEiry. 
"(E) REGULATIONS.—^The Secretary shall issue such regula-
tions £is the Secretary considers necessary relating to the selec-
tion and exercise of me functions of the respective conmiittees, 
and to the administration through such committees of the pro-
grams described in subparagraph (D). Pursuant to such regula-
tions, each county and area committee shall select an executive 
director for the area or county. Such selection shall be made 
in the same manner as provided for the selection of the county 
executive director under section 7.21(b)(2) of title 7, Code of 
Federal Regulations, as in effect on January 1, 1994. Regula-
tions governing payments or grants under tms subsection shall 
be as simple ana direct as possible, and, whenever practicable, 
they shall be classified on the following two bases: 
"(i) SoU-depletLng practices. 
"(ii) Soil-building practices. 
"(F) MANDATORY DUTIES OF SECRETARY.—In carrying out 
this section, the Secretaiy shall— 
"(i) insofar as practicable, protect the interests of ten-
ants and sharecroppers; 
"(ii) accord such encoiu'agement to producer-owned and 
E
roducer-controUed cooperative sissociations as wUl be in 
armonv with the policy towEird cooperative associations 
set forth in Federal laws and as will tend to promote 
efficient methods of marketing and distribution; 
"(iii) in every practicable manner, protect the interests 
of small producers; and 
"(iv) in every practical way, encourage and provide 
for soil-conserving and soil-rebuilding practices. 
108 STAT. 3218 
PUBLIC LAW 103-354—OCT. 13, 1994 
"(G) DISCRETIONARY AUTHORITIES OF SECRETARY.—In carry-
ing out this section, the Secretary may use other approved 
agencies. 
"(H) LIMITATIONS.—In carrying out this section, the Sec-
retary shall not have the authority to acquire any land or 
any right or interest in land.". 
(b) ELIMINATION OF F M H A COUNTY COMMITTEES.—The ConsoH-
dated Farm and Rural Development Act (7 U.S.C. 1921 et seq.) 
is amended— 
(1) by striking section 332 (7 U.S.C. 1982); and 
(2) in section 333 (7 U.S.C. 1983)— 
(A) by striking paragraph (2); and 
(B) redesignating paraigraphs (3), (4), and (5) as para-
graphs (2), (3), and (4), respectively. 
Subtitle C—^Rural Economic and 
Community Development 
7 use 6941. 
SEC. 231. UNDER SECRETARY OF AGRICULTURE FOR RURAL ECO-
NOMIC AND COMMUNITY DEVELOPMENT. 
(a) AUTHORIZATION.—The Secretary is authorized to establish 
in the Department the position of Under Secretary of Agriculture 
for Rural Economic and Community Development. 
(b) CONFIRMATION REQUIRED.—If the Secretary establishes the 
position of Under Secretary of Agriculture for Rural Economic £ind 
Community Development authorized under subsection (a), the 
Under Secretary shall be appointed by the President, by and with 
the advice and consent of the Senate. 
(c) FUNCTIONS OF UNDER SECRETARY.— 
(1) PRINCIPAL FUNCTIONS.—Upon establishment, the Sec-
retary shall delegate to the Under Secretary of Agriculture 
for Rural Economic and Community Development those ftinc-
tions under the jurisdiction of the Depsirtment that are related 
to rural economic and community development. 
(2) ADDITIONAL FUNCTIONS.—The Under Secretary of Agri-
culture for Rural Economic and Community Development shall 
perform such other functions as may be required by law or 
prescribed by the Secretary. 
(d) SUCCESSION.—^Any of&cial who is serving as Under Secretary 
of .^riculture for Small Community and Rural Development on 
the date of the enactment of this Act and who was appointed 
by the President, by and with the advice and consent of the Senate, 
shall not be required to be reappointed under subsection (b) to 
the successor position authorized under subsection (a) if the Sec-
retary establisnes the position, and the official occupies the new 
position, within 180 days after the date of the enactment of this 
Act (or such later date set by the Secretary if Htigation delays 
rapid succession). 
(e) LOAN APPROVAL AUTHORITY.—^Approval authority for loans 
and loan guarantees in connection with tide electric and telephone 
loan and loan guarantee programs authorized by the Rural Elec-
trification Act of 1936 (7 U.S.C. 901 et seq.) shall not be transferred 
to, or conditioned on review of, a State director or other employee 
whose primary duty is not the review and approval of such loans 
or the provision of assistance to such borrowers. 
(f) CONFORMING AMENDMENTS.— 
PUBLIC LAW 103-354—OCT. 13,1994 
108 STAT. 3219 
(1) EXISTING POSITION.—Section 3 of the Rural Develop-
ment Policy Act of 1980 (7 U.S.C. 2211b) is amended by striking 
subsection (a). 
(2) EXECUTIVE SCHEDULE.—Section 5314 of title 5, United 
States Code, is amended by striking "Under Secretary of Agri-
culture for Small Community and Rural Development." and 
inserting "Under Secretary of Agriculture for Rural Economic 
and Community Development.". 
(3) REPEAL OF RURAL DEVELOPMENT ADMINISTRATION.—Sec-
tion 364 of the ConsoUdated Farm and Rural Development 
Act (7 U.S.C. 2006f) is repealed. 
SEC. 232. RURAL UnLTTIES SERVICE. 
7 USC 6942. 
(a) ESTABLISHMENT REQUIRED.—^The Secretaiy shall establish 
and maintain within the Department the Rural Utihties Service 
and assign to the Service such functions as the Secretary considers 
appropriate. 
(b) ADMINISTRATOR.— 
(1) APPOINTMENT.—The Rural Utilities Service shall be President, 
headed by an Administrator who shall be appointed by the 
President, by and with the advice and consent of the Senate. 
(2) SUCCESSION.—Any official who is serving as Adminis-
trator of the Rural Electrification Administration on the date 
of the enactment of this Act and who was appointed by the 
President, by and with the advice and consent of the Senate— 
(A) may be considered to be serving in the successor 
position established under paragraph (1); and 
(B) shall not be required to be reappointed to that 
position by reason of the enactment of this Act. 
(3) EXECUTIVE SCHEDULE.—Section 5315 of titie 5, United 
States Code, is amended by adding at the end the following: 
"Administrator, Rural Utihties Service, Department of 
Agriculture.". 
(c) FUNCTIONS.—The Secretary shall carry out through the 
Rural Utihties Service the following functions that are under the 
jmisdiction of the Department: 
(1) Electric and telephone loan programs and water and 
waste facihty activities authorized by law, including— 
(A) the Rural Electrification Act of 1936 (7 U.S.C. 
901 et seq.); Emd 
(B) section 2322 of the Food, Agriculture, Conservation, 
and Trade Act of 1990 (7 U.S.C. 1926-1); and 
(2) Water and waste facihty programs and activities author-
ized by law, including— 
(A) sections 306, 306A, 306B, and 306C, the provisions 
of sections 309 and 309A relating to assets, terms, and 
conditions of water and sewer programs, section 310B(b)(2), 
and the amendment made by section 342 of the Consoli-
dated Farm and Rural Development Act (7 U.S.C. 1926, 
1926a, 1926b, 1926c, 1929, 1929a, 1932(b)(2), and 1013a); 
and 
(B) section 2324 of the Food, Agriculture, Conservation, 
and Trade Act of 1990 (7 U.S.C. 1926 note). 
SEC. 233. RURAL 
HOUSING 
AND 
COMMUNITY 
DEVELOPMENT 
7 USC 6943. 
SERVICE. 
(a) ESTABUSHMENT AUTHORIZED.—Notwithstanding any other 
provision of law, the Secretary is authorized to establish and main-
108 STAT. 3220 
PUBLIC LAW 103-354—OCT. 13, 1994 
tain within the Department the Rural Housing and Conununity 
Development Service and to assign to the Service such functions 
as the Secretary considers appropriate. 
(b) FUNCTIONS.—If the Secretary establishes the Rural Housing 
£uid Community Development Service under subsection (a), the 
Secretary is authorized to assign to the Service jurisdiction over 
the following: 
(1) Programs and activities under title V of the Housing 
Act of 1949 (42 U.S.C. 1471 et seq.). 
(2) Programs and activities authorized under section 
310B(i) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1932(i)) and related provisions of law. 
(3) Programs and activities that relate to rural community 
lending programs, including programs authorized by sections 
365 through 369 of the Consolidated Farm and Rural Develop-
ment Act (7 U.S.C. 2008-2008d). 
7 use 6944. 
SEC. 234. RURAL BUSINESS AND COOPERATIVE DEVELOPMENT 
SERVICE. 
(a) EsTABUSHMENT AUTHORIZED.—Notwithstanding any other 
provision of law, the Secretary is authorized to establish and main-
tain within the Department the Rural Business and Cooperative 
Development Service and to assign to the Service such fiinctions 
as the Secretary considers appropriate. 
(b) FUNCTIONS.—If the Secretary establishes the Rural Business 
and Cooperative Development Service under subsection (a), the 
Secretary is authorized to assign to the Service jurisdiction over 
the following: 
(1) Section 313 and title V of the Rural Electrification 
Act of 1936 (7 U.S.C. 940c and 950aa et seq.). 
(2) Subtitle G of title XVI of the Food, Agriculture, Con-
servation, and Trade Act of 1990 (7 U.S.C. 5901 et seq.). 
(3) Sections 306(a)(1) and 310B of the Consolidated Farm 
and Rural Development Act (7 U.S.C. 1926(aXl) and 1932). 
(4) Section 1323 of the Food Security Act of 1985 (Public 
Law 99-198; 7 U.S.C. 1932 note). 
(5) The Act of July 2, 1926 (44 Stat. 802, chapter 725; 
7 U.S.C. 451 et seq.). 
SEC. 235. CONFORMING AMENDMENTS REGARDING RURAL ELEC-
TRIFICATION ADMINISTRATION. 
(a) AMENDMENTS TO RURAL ELECTRIFICATION ACT OF 1936.— 
The Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.) is 
amended— 
(1) by striking the first section (7 U.S.C. 901) and inserting 
the following: 
Rural 
"SECTION 1. SHORT TITLE. 
Act of 1936 
"This Act may be cited as the 'Rural Electrification Act of 
1936'."; 
(2) in section 2(a) (7 U.S.C. 902(a)), by striking "Adminis-
trator'' and inserting "Secretary of Agriculture"; 
(3) in section 3(a) (7 U.S.C. 903(a))— 
(A) by striking "Administrator, upon the request and 
approval of the Secretary of Agriculture," and inserting 
"Secretary"; and 
(B) by striking "Administrator appointed pxirsuant to 
the provisions of this Act or firom the Administrator of 
PUBLIC LAW 103-354—OCT. 13, 1994 
108 STAT. 3221 
the Rural Electrification Administratioii estabUshed by 
Executive Order Numbered 7037" and inserting "Sec-
retary"; 
(4) in section 8 (7 U.S.C. 908)— 
(A) by striking "Administrator authorized to be 
appointed by this Acf' and inserting "Secretary"; and 
(B) by striking "Rural Electrification Administration 
created by this Act and inserting "Secretary"; 
(5) by striking section llA (7 U.S.C. 911a); 
(6) m section 13 (7 U.S.C. 913), by inserting before the 
- period at the end the following: "; and the term 'Secretary* 
^ shall be deemed to mean the Secretary of Agriculture"; 
(7) in sections 206(b)(2), 306Aa)), 311, and 405(b)(1)(A) 
(7 U.S.C. 927(b)(2), 936a(b), 940a, and 945(b)(1)(A)), by striking 
"Riu*al Electrification Administration" each place it appears 
and inserting "Secretary"; 
(8) in sections! 305(c)(2)(C)(ii)(II) and 306E(d) (7 U.S.C. 
935(c)(2)(C)(ii)(II) jand 936e(d)), by striking "ADMINISTRATOR" 
and inserting "SECRETARY"; 
(9) in section 403(b) (7 U.S.C. 943(b)), by striking "Rural 
Electrification Administration or of any other agency of the 
Department of Agriculture," and inserting "Secretary,"; 
(10) in section 404 (7 U.S.C. 944), by striking "the Adminis-
trator of the Rural Electrification Administration" and inserting 
"the Secretary shall designate an official of the Department 
of Agriculture who"; 
(11) in sections 406(c) and 410 (7 U.S.C. 946(c) and 950), 
by striking "Administrator of the Rural Electrification Adminis-
tration" each place it appears and inserting "Secretary"; 
(12) in the heading of section 501 (7 U.S.C. 950aa), by 
striking "OF REA ADMINISTRATOR"; and 
(13) except as otherwise provided in this subsection, by 
striking "Administrator" each place it appesirs in such Act 
and inserting "Secretary". 
(b) MISCELLANEOUS AMENDMENTS.—(1) Section 236(a) of the 
Disaster ReHef Act of 1970 (7 U.S.C. 912a) is amended by striking 
"Rural Electrification Administration" and inserting 
Secretaiy 
under the Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.) . 
(2) Section 505 of the Department of Agriculture Organic Act 
of 1944 (7 U.S.C. 915) is amended— 
(A) by striking "Rural Electrification Administration" and 
inserting "Secretary of Agriculture"; and 
(B) by striking "its" and inserting "the Secretary's". 
(3) Section 401 of the Rural Electrification Act of 1938 (7 
U.S.C. 903 note) is amended in the second paragraph by striking 
"Administrator of the Rural Electrification Admimstration" and 
inserting "Secretary of Agriculture". 
(4) Chapter 1 of subtitie D of titie XXIII of the Food, Agri-
culture, Conservation, and Trade Act of 1990 (7 U.S.C. 950aaa 
et seq.), relating to Dist^ance Learning and Medical Link Programs, 
is amended— 
. 
(A) in section 2333— 
(i) by striking paragraph (1); and 
? 
(ii) by redesignating paragraphs (2) through (11) as 
paragraphs (1) tiirough (10), respectively; 
(B) in section 2334(h)(2), bv striking "section 2333(3)(F)" 
and inserting "section 2333(2XF)^'; and 
7 u s e 950aaa-2. 
7 use 950aaa-3. 
108 STAT. 3222 
PUBLIC LAW 103-354—OCT. 13,1994 
(C) by striking "Administratoi'* each place it appears and 
inserting "Secreta^. 
(5) Section 306(aXl5) of the ConsoUdated Farm and Rural 
Development Act (7 U.S.C. 1926(aX15)) is amended— 
(A) by striking subparagraph (C); and 
(B) by redesignating subparagraph (D) as subparagraph 
(C). 
(6) Section 2322(d) of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 192e-l(d)) is amended— 
(A) by striking paragraph (2); and 
(B) by redesignating paragraph (3) as paragraph (2). 
Subtitle D—^Food, Nutrition, and Consumer 
Services 
7 use 6951. 
SEC. 241. UNDER SECRETARY OF AGRICULTURE FOR FOOD, NUTRI-
TION, AND CONSUMER SERVICES. 
(a) AUTHORIZATION.—^The Secretary is authorized to establish 
in the Department the position of Under Secretary of Agriculture 
for Food, Nutrition, and Consimier Services. 
(b) CONFIRMATION REQUIRED.—If the Secretary establishes the 
position of Under Secretary of Agriculture for Food, Nutrition, and 
Consumer Services authorized under subsection (a), the Under Sec-
retary shall be appointed by the President, by and with the advice 
and consent of the Senate. 
(c) FUNCTIONS OF UNDER SECRETARY.— 
(1) PRINCIPAL FUNCTIONS.—Upon establishment, the Sec-
retary shall delegate to the Under Secretary of Agriculture 
for Food, Nutrition, and Consumer Services those functions 
under the jurisdiction of the Departinent that are related to 
food, nutrition, and consumer services (except as provided in 
section 261(bXl)). 
(2) ADDIT[ONAL FUNCTIONS.—The Under Secretary of Agri-
culture for Food, Nutrition, and Consumer Services shall per-
form such other functions as may be required by law or 
prescribed by the Secretary. 
(d) SUCCESSION.—^Any official who is serving as Assistant Sec-
retary of Agriculture for Food and Consumer Services on the date 
of the enactment of this Act and who was appointed by the Presi-
dent, by and with the advice and consent of the Senate, shaU 
not be required to be reappointed under subsection (b) to the succes-
sor position authorized under subsection (a) if the Secretary estab-
lishes the position, and the official occupies the new position, within 
180 days after the date of the enactment of this Act (or such 
later date set by the Secretary if litigation delays rapid succession). 
(e) EXECUTIVE SCHEDULE.—Section 5314 of titie 5, United 
States Code, is amended by inserting after the item relating to 
the Under Secretary of Agriculture for Farm and Foreign Agricul-
tural Services (as added by section 225(eX2)) the following: 
"Under Secretary of Agriculture for Food, Nutrition, and 
Consumer Services.". 
PUBLIC LAW 103-354—OCT. 13, 1994 
108 STAT. 3223 
Subtitle E—Natural Resources and 
Environment 
SEC. 246. UNDER SECRETARY OF AGRICULTURE FOR NATURAL 
7 USC 6961. 
RESOURCES AND ENVIRONMENT. 
(a) AUTHORIZATION.—The Secretary is authorized to establish 
in the Department the position of Unaer Secretary of Agriculture 
for Natural Resources and Environment. 
(b) CONFIRMATION REQUIRED.—If the Secretary estabUshes the 
position of Under Secretary of Agriculture for Natural Resources 
and Environment autliorized imder subsection (a), the Under Sec-
retary shall be appointed by the President, by and with the advice 
and consent of the Senate. 
(c) FUNCTIONS OF UNDER SECRETARY.— 
(1) PRINCIPAL FUNCTIONS.—^Upon establishment, the Sec-
retary shall delegate to the Under Secretary of Agriculture 
for Natural Resources and Environment those functions under 
the jurisdiction of the Department that are related to natural 
resources and environment (except to the extent those functions 
are delegated under section 226). 
(2) ADDITIONAL FUNCTIONS.—The Under Secretary of Agri-
culture for Natural Resources and Environment shall perform 
such other functions and duties as may be required by law 
or prescribed by the Secretary. 
(d) SUCCESSION.—^Any official who is serving as Assistant Sec-
retary of Agriculture for Natural Resources and Environment on 
the date of the enactment of this Act and who was appointed 
by the President, by and with the advice and consent of the Senate, 
shall not be required to be reappointed under subsection (b) to 
the successor position authorized under subsection (a) if the Sec-
retary establisnes the position, and the official occupies the new 
position, within 180 days after the date of the enactment of this 
Act (or such later date set by the Secretary if Utigation delays 
rapid succession). 
(e) EXECUTIVE SCHEDULE.—Section 5314 of title 5, United 
States Code, is amended bv inserting after the item relating to 
the Under Secretary of Agriculture for Food, Nutrition, and 
Consumer Services (as added by section 241(e)) the following: 
"Under SecretEiry of Agriculture for Natural Resources and 
Environment". 
SEC 24& NATURAL RESOURCES CONSERVATION SERVICE. 
7 USC 6962. 
(a) EsTABUSHMENT.—^The Secretary is authorized to establish 
and maintain within the Department a Natural Resources Con-
servation Service. 
(b) FUNCTIONS.—If the Secretary establishes the Natural 
Resources Conservation Service under subsection (a), the Secretary 
is authorized to assign to the Service jurisdiction over the following: 
(1) The rural environmental conservation program under 
title X of the Agricultural Act of 1970 (16 U.S.C. 1501 et 
seq.). 
(2) The Great Plains Conservation Program imder section 
16(b) of the Soil Conservation and Domestic Allotment Act 
(16 U.S.C. 590p(b)). 
(3) The Water Bank Act (16 U.S.C. 1301 et seq.). 
108 STAT. 3224 
PUBLIC LAW 103-354—OCT. 13, 1994 
(4) The forestry incentive program under section 4 of the 
Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 2103). 
(5) Title XII of the Food Security Act of 1985 (16 U.S.C. 
3801 et seq.), except subchapter B of chapter 1 of subtitle 
D of such titie. 
(6) SEdinity control program under section 202(c) of the 
Colorado River Basin Salinity Control Act (43 U.S.C. 1592(c)). 
(7) The Farms for the Future Act of 1990 (7 U.S.C. 4201 
note). 
(8) Such other functions as the Secretary considers appro-
priate, except functions under subchapter B of chapter 1 of 
subtitie D of titie XII of the Food Security Act of 1985 (16 
U.S.C. 3831-3836) and the agricultural conservation program 
imder the Soil Conservation and Domestic Allotment Act (16 
U.S.C. 590g et seq.). 
(c) SPECIAL CONCURRENCE REQUIREMENTS FOR CERTAIN FUNC-
TIONS.—^In carrying out the programs specified in paragraphs (2), 
(3), (4), and (6) of subsection (b) and the program under subchapter 
C of chapter 1 of subtitie D of titie All of the Food Security 
Act of 1985 (16 U.S.C. 3837-3837f), the Secretary shall— 
(1) acting on the recommendations of the Natural Resources 
Conservation Service, with the concurrence of the Consohdated 
Farm Service Agency, issue regulations to carry out such pro-
grams; 
(2) ensure that the Natural Resources Conservation Serv-
ice, in establishing poHcies, priorities, and guidehnes for each 
such program, does so with tne concurrence of the ConsoUdated 
Farm Service Agency at national. State, and local levels; 
(3) ensure that, in reaching such concurrence at the local 
level, the Naturgd Resources Conservation Service works in 
cooperation with Soil and Water Conservation Districts or simi-
lar organizations established imder State law; 
(4) ensure that officials of county and area committees 
estabUshed under section 8(b)(5) of the Soil Conservation and 
Domestic Allotment Act (16 U.S.C. 590h(b)(5)) meet annually 
with officials of such Districts or similar organizations to con-
sider local conservation priorities and guidelines; and 
(5) take steps to ensure that the conciurence process does 
not interfere with the effective deUvery of such programs. 
(d) USE OF FEDERAL AND NON-FEDERAL EMPLOYEES.— 
(1) USE AUTHORIZED.—In the implementation of functions 
Etssigned to the Natural Resources Conservation Service, the 
Secretary may use interchangeably in local offices of the Service 
both Federal employees of the Department and non-Federal 
employees of county and area committees estabUshed under 
section 8(b)(5) of the Soil Conservation and Domestic Allotment 
Act (16 U.S.C. 590h(b)(5)). 
(2) EXCEPTION.—Notwithstanding paragraph (1), no person-
nel action (as defined in section 2302(a)(2)(A) of title 5, united 
States Code) may be taken with respect to a Federal employee 
unless such action is taken by another Federal employee. 
(e) SAVINGS PROVISION.—For purposes of subsections (c) and 
(d) of this section: 
(1) A reference to the "Natural Resources Conservation 
Service" includes any other office, agency, or administrative 
tmit of the Department assigned the functions authorized for 
the Natural Resources Conservation Service under this section. 
PUBLIC LAW 103-354—OCT. 13, 1994 
108 STAT. 3225 
(2) A reference to the "Consolidated Farm Service Agency" 
includes any other office, agen(y, or administrative unit of 
the Department assigned the ranctions authorized for the 
ConsoUdated Farm Service Agency imder section 226. 
(f) CONFORMING AVIENDMENTS.— 
(1) SOIL CONSERVATION SERVICE.—Section 5 of the Soil Con-
servation and Domestic Allotment Act (16 U.S.C. 590e) is 
repealed. 
(2) SOIL AND WATER RESOURCES CONSERVATION.—The Soil 
and Water Resources Conservation Act of 1977 (16 U.S.C. 2001) 
is Eunended— 
(A) in section 2(2) (16 U.S.C. 2001(2))— 
(i) by striking "created the Soil Conservation Serv-
ice"; and 
(ii) by striking "Department of Agriculture which" 
and inserting ", has ensured that the Department of 
A-fiTrictiltiiTG * 
(B) in section 3(2) (16 U.S.C. 2002(2)), by striking 
**through the Soil Conservation Service"; and 
(C) in section 6(a) (16 U.S.C. 2005(a)), by striking 
"Soil Conservation Service" and inserting "Secretarj^'. 
(3) STATE TECHNICAL COMMITTEES.—Section 1262 
of 
the 
Food Security Act of 1985 (16 U.S.C. 3862) is amended by 
adding at the end the following new subsection: 
"(e) FACA REQUIREMENTS.—^The conmiittees established under 
section 1261 shall be exempt from the Federal Advisory Committee 
Act (5 U.S.C. App.).". 
SEC. 247. REORGANIZATION OF FOREST SERVICE. 
7 USC 6963. 
(a) 
REQUIRED ELEMENTS OF REORGANIZATION PROPOSALS.— 
Reorganization proposals that are developed by the Secretary to 
carry out the designation by the President of the Forest Service 
as a Reinvention Lab pursuant to the National Performance Review, 
dated September 1993, shall include proposals for— 
(1) reorganizing the Service in a manner that is consistent 
with the principles of interdisciplinary planning; 
(2) redefining and consolidating tlie mission and roles of, 
and research conducted by, employees of the Service in connec-
tion with the National Forest System and State and private 
forestry to facilitate interdisciplinary planning and to eliminate 
functionalism; 
(3) reforming the budget structure of the Service to support 
interdisciplinary planning, including reducing the number of 
budget line items; 
(4) defining new measures of accoimtabiUty so that Con-
gress may meet the constitutional obUgation of Congress to 
oversee the Service; 
(5) achieving structural and organizational consoUdations; 
(6) to the extent practicable, snaring office space, equip-
ment, vehicles, and electronic systems with other administra-
tive units of the Department and other Federal field offices, 
including proposals for using an on-line sj^stem by all adminis-
trative units of the Department to maximize administrative 
efficiency; and 
(7) reorganizing the Service in a manner that will residt 
in a larger percentage of employees of the Service being retained 
108 STAT. 3226 
PUBLIC LAW 103-354—OCT. 13, 1994 
at organizational levels below regional offices, research stations, 
and tiie area office of the Service. 
(b) REPORT.—Not later than March 31, 1995, the Secretary 
shall submit a report to the Committee on Agriculture of the House 
of Representatives and the Committee on Agriculture, Nutrition, 
and Forestry of the Senate that describes actions taken to carry 
out subsection (a), identifies any disparities in regional funding 
patterns, and contains the rationale behind the disparities. 
Subtitle F—Research, Education, and 
Economics 
7 use 6971. 
SEC. 261. UNDER SECRETARY OF AGRICULTURE FOR RESEARCH, EDU-
CATION, AND ECONOMICS. 
(a) AUTHORIZATION.—The Secretary is authorized to estabhsh 
in the Department the position of Under Secretary of Agriculture 
for Research, Education, and Economics. 
(b) CONFIRMATION REQUIRED.—If the Secretary establishes the 
position of Under Secretary of Agriculture for Research, Education, 
and Economics authorized imder subsection (a), the Under Secretary 
shall be appointed by the President, by and with the advice and 
consent of the Senate. 
(c) FUNCTIONS OF UNDER SECRETARY.— 
(1) PRINCIPAL FUNCTIONS.—Upon establishment, the Sec-
retary shall delegate to the Under Secretary of ALgriculture 
for Research, Education, and Economics those functions and 
duties under the jurisdiction of the Department that are related 
to research, education, and economics. 
(2) ADDITIONAL FUNCTIONS.—The Under Secretary of Agri-
culture for Research, Education, and Economics shall perform 
such other functions and duties as may be required by law 
or prescribed by the Secretary. 
(d) COOPERATIVE STATE RESEARCH, EDUCATION, AND EXTENSION 
SERVICE.— 
(1) ESTABUSHMENT.—There is established in the Depart-
ment a Cooperative State Research, Education, and Extension 
Service. 
(2) FUNCTIONS.—The Secretary shall delegate to the 
Cooperative State Research, Education, and Extension Service 
functions related to cooperative State research programs and 
cooperative extension and education programs that are under 
the jurisdiction of the Department. 
(3) OFFICER-IN-CHARGE.—If the Secretary establishes the 
position of Under Secretary of Agriculture for Research, Edu-
cation, and Economics, the officer in charge of the Cooperative 
State Research, Education, and Extension Service shall report 
directiy to the Under Secretary. 
(e) EXECUTIVE SCHEDULE.—Section 5314 of titie 5, United 
States Code, is simended by inserting after the item relating to 
the Under Secretary of Agriculture for Natural Resources and 
Environment (as added by section 245(e)) the following: 
"Under Secretary of Agriculture for Research, Education, 
and Economics.". 
PUBLIC LAW 103-354—OCT. 13, 1994 
108 STAT. 3227 
SEC. 252. PROGRAM STAFF. 
7 USC 6972. 
In making the personnel reductions required under section 
213, the Secretary shall reduce the number of Federal research 
and education personnel of the Department by a percentage equal 
to at least the percentage of overall Department personnel reduc-
tions. The Secretary shall achieve such reduction in research and 
education personnel in a manner that minimizes duplication 
and maximizes coordination between Federal and State research 
and extension activities. 
Subtitle G—Food Safety 
SEC. 261. UNDER SECRETARY OF AGRICULTURE FOR FOOD SAFETY. 
7 USC 6981. 
(a) ESTABLISHMENT.—There is established in the Department 
of Agriculture the position of Under Secretary of Agriculture for 
Food Safety. The Under Secretary shall be appointed oy the Presi- President. 
dent, by and with the advice and consent of the Senate, from 
among individuals with specialized training or significsint experi-
ence in food safety or public heEilth progrsims. 
(b) FUNCTIONS OF UNDER SECRETARY.— 
(1) PRINCIPAL FUNCTIONS.—The Secretary shall delegate 
to the Under Secretary of Agriculture for Food Safety those 
functions and duties under the jurisdiction of the Department 
that are primarily related to food safety. 
(2) ADDITIONAL li^JNCTiONS.—The Under Secretary of Agri-
culture for Food Safety shall perform such other functions 
and duties as may be required by law or prescribed by the 
Secretary. 
(c) EXECUTIVE SCHEDULE.—Section 5314 of title 5, United 
States Code, is amended by inserting after the item relating to 
the Under Secretary of A^culture for Research, Education, and 
Economics (as added by section 251(e)) the following: 
"Under Secretary of Agriculture for Food Ssifety.". 
(d) TECHNICAL AND SCIENTIFIC REVIEW GROUPS.—The Sec-
retary, acting through the Under Secretary for Research, Education, 
and Economics, may, without regard to the provisions of title 5, 
United States Code, governing appointment in the competitive serv-
ice, and without regard to the provisions of chapter 51 and sub-
chapter III of chapter 53 of title 5, United States Code, relating 
to classification and General Schedule pay rates— 
(1) establish such technical and scientific review groups 
as are needed to carry out the functions of the Department; 
and 
(2) appoint and pay the members of the groups, except 
that officers and employees of the United States shall not 
receive additional compensation for service as a member of 
a group. 
SEC 262. CONDITIONS FOR IMPLEMENTATION OF ALTERATIONS IN 
7 USC 6982. 
THE LEVEL OF ADDITIVES ALLOWED IN ANIMAL DIETS. 
(a) CONDITIONS.—The Food and Drug Administration shall not 
implement or enforce the final rule described in subsection (b) 
to alter the level of selenium allowed to be used as a supplement 
in animal diets unless tlie Commissioner of the Food and Drug 
Administration makes a determination that— 
108 STAT. 3228 
PUBLIC LAW 103-354—OCT. 13, 1994 
(1) selenium additives are not essential, at levels authorized 
in the absence of such final rule, to maintain animal nutrition 
and protect animal health; 
(2) selenium at such levels is not safe to the smimals 
consuming the additive; 
(3) seleniiun at such levels is not safe to individuals 
consuming edible portions of animals that receive the additive; 
(4) selenium at such levels does not achieve its intended 
effect of promoting normal growth and reproduction of hvestock 
and poultry; and 
(5) the manufacture and use of selenimn at such levels 
cannot reasonably be controlled by adherence to current good 
manufacturing practice requirements. 
(b) FINAL RULE DESCRIBED.—The final rule referred to rri sub-
section (a) is the final rule issued by tiie Food and Drug Administra-
tion and published in. the Federal Register on September 13, 1993 
(58 Fed. Reg. 47962), in which the Administration stayed 1987 
amendments to the seleniimi food additive regulations, and any 
modification of such rule issued after the date of the enactment 
of this Act. 
Subtitle H—^National Appeals Division 
7USC699L 
SEC. 271. DEFINITIONS. 
For purposes of this subtitle: 
(1) ADVERSE DECISION.—^The term "adverse decision" means 
an administrative decision made by an officer, employee, or 
committee of an agency that is adverse to a participant. The 
term includes a denisd of equitable reUef by an agency or 
the failure of an agency to issue a decision or otherwise act 
on the request or right of the participant. The term does not 
include a decision over which the Board of Contract Appeals 
has jurisdiction. 
(2) AGENCY.—^The term "agencjr" means any agency of the 
Department designated by the Secretary or a successor agency 
of the Department, except that the term shall include the 
following (and any successor to the following): 
(A) The ConsoHdated Farm Service Aeen^ (or other 
office, agency, or administrative unit of the Department 
Eissigned the functions authorized for the ConsoHdated 
Farm Service Agency under section 226). 
(B) The Commodity Credit Corporation, with respect 
to domestic programs. 
(C) The Farmers Home Administration. 
(D) The Federed Crop Insiu^nce Corporation. 
(E) The Rural Development Administration. 
(F) The Natural Resources Conservation Service (or 
other office, agency, or administrative unit of the Depart-
ment assigned the functions authorized for the Natural 
Resources Conservation Service under section 246(b)). 
(G) A State, county, or area conmiittee established 
under section 8(b)(5) of the Soil Conservation and Domestic 
Allotment Act (16 U.S.C. 590h(b)(5)). 
(3) APPELLANT.—^The term "appellant" means a participant 
who appeals an adverse decision in accordance with this 
subtitie. 
PUBLIC LAW 103-354—OCT. 13, 1994 
108 STAT. 3229 
(4) CASE RECORD.—^The term "case record" means all the 
materials maintained by the Secretary related to an adverse 
decision. 
(5) DIRECTOR.—^The term "Director" means the Director 
of the Division. 
(6) DIVISION.—^The term "Division" means the National 
Appeals Division estabUshed by this title. 
(7) HEARING OFFICER.—^The term "hearing officer" means 
an individual employed by the Division who hears and deter-
mines appeals of adverse decisions by any agency. 
(8) IMPLEMENT.—The term "implement" refers to those 
actions necessary to effectuate fuUy and promptly a final deter-
mination of the Division not later than 30 calendar days after 
the effective date of the final determination. 
(9) PARTICIPANT.—The term "participant" shall have the 
meaning given that term by the Secretary by regulation. 
SEC. 272. NATIONAL APPEALS DIVISION AND DIRECTOR. 
7 USC 6992. 
(a) ESTABLISHMENT OF DIVISION.—The Secretary shall estabUsh 
and maintain an independent National Appeals Division within 
the Department to carry out this subtitle. 
(b) DIRECTOR.— 
(1) APPOINTMENT'.—The Division shall be headed by a 
Director, appointed by the Secretary fix)m among persons who 
have substantial experience in practicing administrative law. 
In considering applicants for the position of Director, the Sec-
retary shsll 
consider persons cturently employed outside 
Government as weU as Government employees. 
(2) TERM AND REMOVAL.—The Director shall serve for a 
6-year term of office, and shall be eligible for reappointment. 
The Director shall not be subject to removal diuing the term 
of office, except for cause estabUshed in accordance with law. 
(3) POSITION CLASSIFICATION.—^The position of the Director 
may not be a position in the excepted service or fiUed by 
a noncareer appointee. 
(c) DIRECTION, CONTROL, AND SUPPORT.—The Director shall 
be free fix)m the direction and control of any person other than 
the Secretary. The Division shall not receive administrative support 
(except on a reimbursable basis) fix)m any agency other than the 
Office of the Secretary. The Secretary may not delegate to any 
other officer or employee of the Department, other than tiie Director, 
the authority of the Secretary with respect to tiie Division. 
(d) DETERMINATION OF APPEALABIUT\' OF AGENCY DECISIONS.— 
If an officer, employee, or conmiittee of an agency determines that 
a decision is not appealable and a participant appeals the decision 
to the Director, the Director shall determine whether the decision 
is adverse to the individual participant and thus appealable or 
is a matter of general appUcabihty and thus not subject to appeal. 
The determination of the Director as to whether a decision is 
appealable shsill be administratively final. 
(e) DIVISION PERSONNISL.—The Director shall appoint such hear-
ing officers and other employees as are necessary for the administra-
tion of the Division. A hearing officer or other employee of the 
Division shall have no duties other than those that are necessary 
to carry out this subtitle. 
108 STAT. 3230 
PUBLIC LAW 103-354—OCT. 13, 1994 
7 use 6993. 
SEC. 273. TRANSFER OF FUNCTIONS. 
There are transferred to the Division all functions exercised 
and all administrative appeals pending before the effective date 
of this subtitle (including aU related functions of any officer or 
employee) of or relating to— 
(1) the National Appeals Division established by section 
426(c) of the Agricultural Act of 1949 (7 U.S.C. 1433e(c)) (as 
in effect on the day before the date of the enactment of this 
Act); 
(2) the National Appeals Division estabUshed by sub-
sections (d) through (g) of section 333B of the Consolidated 
Farm and Rural Development Act (7 U.S.C. 1983b) (as in 
effect on the day before the date of the enactment of this 
Act); 
(3) appeals of decisions made by the Federal Crop Insurance 
Corporation; and 
(4) appeals of decisions made by the Soil Conservation 
Service (as in effect on the day before me date of the enactment 
of this Act). 
7 use 6994. 
SEC. 274. NOTICE AND OPPORTUNITY FOR HEARING. 
Not later than 10 working days after an adverse decision is 
made that £iffects the participant, the Secretary shall provide the 
participant with written notice of such adverse decision and the 
rights available to the participant under tiiis subtitie or other 
law for the review of such adverse decision. 
7 use 6995. 
SEC. 275. INFORMAL HEARINGS. 
If an officer, employee, or committee of an agencv makes an 
adverse decision, the agency shall hold, at the request of the partici-
pant, an informal hearing on the decision. With respect to programs 
carried out through the ConsoUdated Farm Service Agency (or 
other office, agency, or administrative unit of the Department 
assigned to carry out the programs authorized for the Consolidated 
Farm Service Agency under section 226), the Secretary shall main-
t£iin the informal appeals process appUcable to such programs, 
as in effect on the date oi tiie enactment of the subtitie. If a 
mediation program is available under titie V of the Agricultural 
Credit Act of 1987 (7 U.S.C. 5101 et seq.) as a part of the informal 
hearing process, the participant shall be offered the right to choose 
such mediation. 
7 use 6996. 
SEC. 278. RIGHT OF PARTICIPANTS TO DIVISION HEARING. 
(a) APPEAL TO DIVISION FOR HEARING.—Subject to subsection 
(b), a participsint shall have the right to appeal an adverse decision 
to the Division for an evidentiary hearmg by a hearing officer 
consistent with section 277. 
(b) TIME FOR APPEAL.—^To be entitied to a hearing under section 
277, a participant shall request the hearing not later than 30 
days after the date on which the participant first received notice 
of the adverse decision. 
7 use 6997. 
SEC. 277. DIVISION HEARINGS. 
(a) GENERAL POWERS OF DIRECTOR AND HEARING OFFICERS.— 
(1) ACCESS TO CASE RECORD.—^The Director and hearing 
officer shall have access to the case record of any adverse 
decision appealed to tiie Division for a hearing. 
PUBLIC LAW 103-354—OCT. 13, 1994 
108 STAT. 3231 
(2) ADMINISTRATIVE PROCEDURES.—The Director and hear-
ing officer shall have the authority to require the attendance 
of witnesses, and the production oi evidence, hy suhpoena and 
to adnunister oaths and afiBrmations. Except to the extent 
required for the disposition of ex parte matters as authorized 
by law— 
(A) an interested person outside the Division shaU 
not make or knowingly cause to be made to the Director 
or a hearing officer who is or may reasonably be expected 
to be involved in the evidentiary hearing or review of 
an adverse decision, an ex parte communication (as defined 
in section 551(14) of title 5, United States Code) relevant 
to the merits of the proceeding; 
(B) the Director and such hearing officer shall not 
make or knowingly cause to be made to any interested 
person outside l^e Division an ex parte communication 
relevant to the merits of the proceeding. 
(b) TIME FOR HEARING.—Upon a timely request for a hearing 
under section 276(b), an appellant shall nave the right to have 
a hearing by the Division on the adverse decision witihdn 45 days 
after the date of 
the receipt of the request for the hearing. 
(c) LOCATION AND ELEMENTS OF HEARING.— 
(1) LOCATION.—A hearing on an adverse decision shall 
be held in the State of residence of the appellant or at a 
location that is otherwise convenient to the appellant and the 
Division. 
(2) EVIDENTIARY HEARING.—^The evidentiary hearing before 
a hearing officer shall be in person, unless the appellant agrees 
to a hearing by telephone or by a review of the case record. 
The hearing officer shall not be bound by previous findings 
of fact by the agency in making a determination. 
(3) INFORMATION AT HEARING.—The hearing officer shall 
consider information presented at the hearing without regard 
to whether the evidence was known to the agency officer, 
employee, or committee making the adverse decision at the 
time tiie adverse decision was made. The hearing officer shall 
leave the record open after the hearing for a reasonable period 
of time to allow the submission of information by the appellant 
or the agency after the hearing to the extent necessary to 
respond to new facts, information, arguments, or evidence pre-
sented or raised by the agency or appellant. 
(4) BURDEN OF PROOF.—The appellant shall bear the bur-
den of proving that the adverse decision of the agency was 
erroneous. 
(d) DETERMINATION NOTICE.—^The hearing officer shall issue 
a notice of the determination on the appeal not later than 30 
days after a hearing or after receipt of the request of the appellant 
to waive a hearing, except that the Director may establish an 
earUer or later deadline. If the determination is not appealed to 
the Director for review under section 278, the notice provided by 
the hearing officer shall be considered to be a notice of an adminis-
tratively final determination. 
(e) EFFECTIVE DATE.—The final determination shall be effective 
as of the date of filing of an application, the date of the transaction 
or event in question, or the date of the original adverse decision, 
whichever is appUcable. 
108 STAT. 3232 
PUBLIC LAW 103-354—OCT. 13, 1994 
7 use 6998. 
SEC. 278. DIRECTOR REVIEW OF DETERMINATIONS OF HEARING 
OFFICERS. 
(a) REQUESTS FOR DIRECTOR REVIEW.— 
(1) TIME FOR REQUEST BY APPELLANT.—Not later than 30 
days after the date on which an appellant receives the deter-
mination of a hearing officer under section 277, the appellant 
shall submit a written request to the Director for review of 
the determination in order to be entitled to a review by the 
Director of the determination. 
(2) TIME FOR REQUEST BY AGENCY HEAD.—Not later than 
15 business days after the date on which an agency receives 
the determination of a hearing officer under section 277, the 
head of the agency may make a written request that the Direc-
tor review the determination. 
(b) DETERMINATION OF DIRECTOR.—The Director shall conduct 
a review of the determination of the hearing officer using the 
case record, the record firom the evidentiary hearing under section 
277, the request for review, and such other arguments or informa-
tion as may be accepted by the Director. Based on such review, 
the Director shall issue a final determination notice that upholds, 
reverses, or modifies the determination of the hearing officer. 
However, if the Director determines that the hearing record is 
inadequate, the Director may remand all or a portion of the deter-
mination for further proceedings to complete the hearing record 
or, at the option of the Director, to hold a new hearing. The 
Director shall complete the review and either issue a final deter-
mination or remand the determination not later than— 
(1) 10 business days after receipt of the request for review, 
in the case of a request by the head of £in agency for 
review; or 
(2) 30 business days after receipt of the request for review, 
in the case of a request by an appellant for review. 
(c) BASIS FOR DETERMINATION.—^The determination of the hear-
ing officer and the Director shall be based on information fix)m 
the case record, laws appHcable to the matter at issue, and 
applicable regulations published in the Federal Register and in 
effect on the date of the adverse decision or the date on which 
the acts that gave rise to the adverse decision occurred, whichever 
date is appropriate. 
Regulations. 
(d) EQUITABLE REUEF.—Subject to regulations issued by the 
Secretary, the Director shall have the authority to grant equitable 
reUef under this section in the same manner and to the same 
extent as such authority is provided to the Secretary under section 
326 of the Food and Agriculture Act of 1962 (7 U.S.C. 1339a) 
and other laws. NotwithstEuiding the administrative finality of a 
final determination of an appeal by the Division, the Secretary 
shall have the authority to grant equitable or other types of reUef 
to the appellant after an administratively final determination is 
issued by the Division. 
(e) EFFECTIVE DATE.—^A final determination issued by the 
Director shall be effective as of the date of filing of an application, 
the date of the transaction or event in question, or the date of 
the original adverse decision, whichever is applicable. 
PUBLIC LAW 103-354—OCT. 13, 1994 
108 STAT. 3233 
SEC. 279. JUDICIAL REVIEW. 
7 USC 6999. 
A final determiaation of the Division shall be reviewable and 
enforceable by any United States district court of competent jurisdic-
tion in accordance with chapter 7 of title 5, United States Code. 
SEC. 280. IMPLEMENTATION 
OF 
FINAL 
DETERMINATIONS 
OF 
7 USC 7000. 
DIVISION. 
On the return of a case to an agency pursuant to the final 
determination of the Division, the head of the agency shall imple-
ment the final determination not later than 30 days after the 
effective date of the notice of the final determination. 
SEC. 281. CONFORMING AMENDMENTS RELATING TO NATIONAL 
7 USC 7001. 
APPEALS DIVISION. 
(a) DECISIONS OF STATE, COUNTY, AND AREA COMMITTEES.— 
(1) APPLICATION OF SUBSECTION.—This subsection shall 
apply only with respect to fiinctions of the Consolidated Farm 
Service Agency or tne Conmiodity Credit Corporation that are 
under the jurisdiction of a State, county, or area committee 
estabHshed under section 8(b)(5) of the Soil Conservation and 
Domestic Allotment Act (16 U.S.C. 590h(bX5)) or an employee 
of such a committee. 
(2) FINALITY.—^Each decision of a State, coimty, or area 
committee (or an employee of such a committee) covered by 
paragraph (1) tliat is made in good faith in the absence of 
misrepresentation, false statement, fii^ud, or willfiil misconduct 
shall oe final not later than 90 days after the date of filing 
of the application for benefits, unless the decision is— 
(A) appealed under this subtitle; or 
(B) modified by tiie Administrator of the Consolidated 
Farm Service Agency or the Executive Vice President of 
the Commodity Cfredit Corporation. 
(3) RECOVERY OF AMOUNTS.—If the decision of the State, 
county, or area committee has become final under paragraph 
(2), no action may be taken by the Consolidated Farm Service 
Agency, the Commodity Credit Corporation, or a State, county, 
or area committee to recover amounts found to have been 
disbursed as a result of a decision in error unless the partici-
pant had reason to beheve that the decision was erroneous. 
(4) SAVINGS PROVISION.—For purposes of this subsection, 
a reference to the "Consolidated Farm Service Agency" includes 
any other office, agency, or administrative unit of tne Depart-
ment assigned the iunctions authorized for the Consohdated 
Farm Service Agency imder section 226. 
(b) AGRICULTURAL STABIUZATION AND CONSERVATION SERV-
ICE.—Section 426 of the Agricultural Act of 1949 (7 U.S.C. 1433e) 
is repealed. 
(c) FARMERS HOME ADMINISTRATION.—Section 333B of the 
Consohdated Farm and Rural Development Act (7 U.S.C. 1983b) 
is repealed. 
SEC. 282. EXPANSION OF ISSUES COVERED BY STATE MEDIATION 
PROGRAMS. 
(a) EXPANSION OF MEDIATION PROGRAMS.—Section 501 of the 
Agricultural Credit Act of 1987 (7 U.S.C. 5101) is amended— 
(1) in subsection (a), by striking "an agricultural loan medi-
ation program" and inserting "a mediation program"; 
108 STAT. 3234 
PUBLIC LAW 103-354—OCT. 13, 1994 
(2) in subsection (b), by striking "agricultural loan"; and 
(3) by striking subsection (c) and inserting the following 
new subsection: 
"(c) REQUIREMENTS OF STATE MEDIATION PROGRAMS.— 
"(1) ISSUES COVERED.—^To be certified as a qualifying State, 
the mediation program of the State must provide mediation 
services for the persons described in paragraph (2) who are 
involved in agricultural loans or agricultural losins and one 
or more of the following issues under the jurisdiction of the 
• 
Department of Agriculture: 
"(A) Wetiands determinations. 
"(B) Compliance with farm programs, including con-
servation programs. 
"(C) Agricultural credit. 
"(D) Riu'al water loan programs. 
"(E) Grazing on National Forest Sjrstem lands. 
"(F) Pesticides. 
"(G) Such other issues as the Secretary considers 
appropriate. 
"(2) 
PERSONS ELIGIBLE FOR MEDIATION.—^The persons 
referred to in paragraph (1) are producers, their creditors (if 
applicable), and other persons directiy affected by actions of 
the Department of Agriculture. 
"(3) CERTIFICATION coNDiTiONS.^The Secretary shall cer-
tify a State as a qualifying State with respect to the issues 
proposed to be covered by the mediation program of the State 
if the mediation program— 
"(A) provides for mediation services that, if decisions 
are reached, result in mediated, mutually agreeable deci-
sions between the parties to the mediation; 
"(B) is authorized or administered by an agency of 
the State government or by the Governor of the State; 
"(C) provides for tlie training of mediators; 
"(D) provides that the mediation sessions shall be con-
fidential; 
"(E) ensures, in the case of agricultural loans, that 
all lenders and borrowers of agricultural loans receive ade-
quate notification of the mediation program; and 
"(F) ensures, in the case of other issues covered by 
the mediation program, that persons directiy affected by 
actions of the Department of Agriculture receive adequate 
notification of the mediation program.". 
(b) PARTICIPATION OF DEPARTMENT.—Section 503 of such Act 
(7 U.S.C. 5103) is amended— 
(1) by striking "agricultural loan" each place it appears; 
(2) in the matter preceding subparagraph (A) of subsection 
(a)(l>-
(A) by inserting "or agency" after "program"; and 
(B) by striking "that makes, guarantees, or insures 
agricultural loans"; 
(3) in subsection (a)(1)(A)— 
(A) by inserting "or agency" after "such program"; and 
(B) by inserting "certified imder section 501" after 
"mediation program , 
(4) in subsection (a)(1)(B)— 
(A) by striking ", effective beginning on the date of 
the enactment of this Act,"; and 
PUBLIC LAW 103-354—OCT. 13, 1994 
108 STAT. 3235 
(B) by inserting "certified under section 501" Eifter 
"mediation progirams^; and 
(5) in subsection (a)(1)(C)— 
(A) in clause (i), by striking "described in" and inserting 
"certified under"; and 
(B) in clause (ii), by inserting "if applicable," before 
"present^'. 
(c) REGULATIONS.—Section 504 of such Act (7 U.S.C. 5104) 
is amended— 
(1) by striking "Within 150 days after the date of the 
enactment of this Act, the" and inserting "The"; and 
(2) by adding at the end the following new sentence: "The 
regulations prescribed by the Secretary shall require qualifying 
States to adequately train mediators to address all of the issues 
covered by the mediation program of the State.". 
(d) REPORT.—Section 505 of such Act (7 U.S.C. 5105) is 
amended by striking "1990" and inserting "1998". 
(e) AUTHORIZATION OF APPROPRIATIONS.—Section 506 of such 
Act (7 U.S.C. 5106) is amended by striking "1995" and inserting 
"2000". 
(f) CONFORMING AMENDMENTS.— 
(1) REFERENCES TO AGRICULTURAL LOANS.—Subtitle A of 
titie V of such Act is amended— 
(A) in sections 502 and 505(1) (7 U.S.C. 5102, 5105(1)), 
by striking "agricultural loan" each place it appears; and 
(B) in section 505(3) (7 U.S.C. 5105(3)), by striking 
"an agricultural loan mediation" and inserting "a 
mediation". 
(2) WAIVER OF FARM CREDIT SYSTEM MEDIATION RIGHTS 
B
Y BORROWERS.—Section 4.14E of the Farm Credit Act of 1971 
(12 U.S.C. 2202e) is amended by striking "agricultural loan". 
(3) WAIVER OF FMHA MEDIATION RIGHTS BY BORROWERS.— 
Section 358 of the ConsoHdated Farm and Rural Development 
Act (7 U.S.C. 2006) is amended by striking "agricultural loan". 
SEC. 283. AUTHORIZATION OF APPROPRIATIONS. 
7 USC 7002. 
There are authorized to be appropriated such sums as may 
be necessEiry to carry out the activities of the Division. 
Subtitle I—Miscellaneous Reorganization 
Provisions 
SEC. 291. SUCCESSORSHIP PROVISIONS RELATING TO BARGAINING 
7 USC 7011. 
UNITS AND EXCLUSIVE REPRESENTATIVES. 
(a) VOLUNTARY AGREEMENT.— 
(1) IN GENERAL.—If tiie exercise of the Secretary's authority 
under this titie results in changes to an existing bargaining 
unit that has been certified under chapter 71 of titie 5, Unitea 
States Code, the affected parties shall attempt to reach a vol-
imtary agreement on a new bargaining unit and an exclusive 
representative for such unit 
(2) CRITERIA.—In carrying out the requirements of this 
subsection, the affected parties shall use criteria set forth in— 
(A) sections 7103(a)(4), 7111(e), 7111(f)(1), and 7120 
of title 5, United States Code, relating to determining an 
exclusive representative; and 
108 STAT. 3236 
PUBLIC LAW 103-354—OCT. 13, 1994 
(B) section 7112 of titie 5, United States Code (dis-
regarding subsections (b)(5) and (d) thereof), relating to 
determining appropriate units. 
(b) E F F E C T OF AN AGREEMENT.— 
(1) IN GENERAL.—If the affected parties reach agreement 
on the appropriate unit and the exclusive representative for 
such unit under subsection (a), the Federal Labor Relations 
Authority shall certify the terms of such agreement, subject 
to paragraph (2)(A). Nothi ig in this subsection shall be consid-
ered to require the holding of any hearing or election as a 
condition for certification. 
(2) RESTRICTIONS.— 
(A) CONDITIONS REQUIRING NONCERTIFICATION.—The 
Federal Labor Relations Authority may not certify the 
terms of an agreement under paragraph (1) if— 
(i) it determines that any of the criteria referred 
to in subsection (a)(2) (disregarding section 7112(a) 
of titie 5, United States Code) have not been met; 
or 
(ii) after the Secretary's exercise of authority and 
before certification under this section, a valid election 
under section 7111(b) of titie 5, United States Code, 
is held covering any employees who would be included 
in the unit proposed for certification. 
(B) TEMPORARY WAIVER OF PROVISION THAT WOULD BAR 
AN ELECTION AFTER A COLLECTIVE BARGAINING AGREEMENT 
IS REACHED.—Nothing in section 7111(f)(3) of titie 5, United 
States Code, shall prevent the holding of an election under 
section 7111(b) of such titie that covers employees within 
a unit certified under para^aph (1), or giving effect to 
the results of such an election (including a decision not 
to be represented by any labor organization), if the election 
is held before the end of the 12-month period beginning 
on the date such unit is so certified. 
(C) CLARIFICATION.—^The certification of a unit under 
paragraph (1) shall not, for purposes of the last sentence 
of section 7111(b) of titie 5, United States Code, or section 
7111(f)(4) of such titie, be treated as if it had occurred 
pursuant to an election. 
(3) DELEGATION.— 
(A) IN GENERAL.—The Federal Labor Relations Author-
ity may delegate to any regional director (as referred to 
in section 7105(e) of titie 5, United States Code) its author-
ity under the preceding provisions of this subsection. 
(B) REVIEW.—^Any action taken by a regional director 
under subparagraph (A) shall be subject to review under 
title provisions of section 7105(f) of titie 5, United States 
Code, in the same manner as if such action had been 
taken under section 7105(e) of such titie, except that in 
the case of a decision not to certify, such review shall 
be required if application therefor is filed by an affected 
party within the time specified in such provisions. 
(c) DEFINITION.—^For purposes of this section, the term "affected 
party" means— 
(1) with respect to an exercise of authority by the Secretary 
imder this titie, any labor organization affected thereby; and 
(2) the Department of Agriculture. 
PUBLIC LAW 103-354—OCT. 13, 1994 
108 STAT. 3237 
SEC. 292. PURCHASE 
OF 
AMERICAN-MADE 
EQUIPMENT 
AND 
7 USC 7012. 
PRODUCTS. 
(a) SENSE OF CONGRESS.—It is the sense of the Congress that, 
to the greatest extent practicable, aU equipment and products pur-
chased using funds made availaDle pursuant to this title should 
be American-made. 
(b) NOTICE REQUIREMENT.—In providing financial assistance 
to, or entering into any contract with, any entity using funds 
made available pursuant to this title, the Secretary, to the greatest 
extent practicable, shaU provide to such entity a notice describing 
the statement made in subsection (a) by the Congress. 
SEC. 293. MISCELLANEOUS CONFORMING AMENDMENTS. 
(a) UNITED STATES GRAIN STANDARDS ACT.—The United States 
Grain Standards Act (7 U.S.C. 71 et seq.) is amended— 
(1) in section 3 (7 U.S.C. 75)— 
(A) by inserting "and" at the end of subsection (y); 
(B) by striking? subsections (z) and (aa); and 
(C) by redesignating subsection (bb) as subsection (z); 
(2) by striJdng section 3A (7 U.S.C. 75a); 
(3) in section 5(b) (7 U.S.C. 77(b)), by strikii^ "Service 
employees" and inserting "employees of the Secretary^ 
(4) in sections 7(jX2) and 7A(Z)(2) (7 U.S.C. 79(j)(2) and 
79a(Z)(2)), by striking "supervision by Service personnel of its 
field office personnel" in the first sentence of both sections 
and inserting "supervision by the Secretary of the Secretary's 
field office personnel"; 
(5) in section 12(c) (7 U.S.C. 87a(c)), by striking "or 
Administrator^'; 
(6) in section 12(d) (7 U.S.C. 87a(d)), by striking "or the 
Administrator''; 
(7) except as otherwise provided in this subsection, by 
striking "Administrator" each place it appears and inserting 
"Secretary"; and 
(8) except as otherwise provided in this subsection, by 
striking "Service" each place it appears and inserting 
"Secretary". 
(b) PACKERS AND STOCKYARDS ACT, 1921.—Section 407 of the 
Packers and Stockyards Act, 1921 (7 U.S.C. 228), is amended— 
(1) by striking subsection (b); 
(2) by redesignating subsections (c), (d), (e), £ind (f), as 
subsections (b), (c), (d), and (e), respectively; and 
(3) in subsection (e) (as so redesignated), by striking "sub-
section (e)" and inserting "subsection (d)". 
SEC. 294. REMOVAL OF OBSOLETE ADMINISTRATIVE PROVISIONS. 
Section 5316 of titie 5, United States Code, is amended— 
(1) by striking "Administrator, Agricultural Marketing 
Service, Department of 
Agriculture."; 
(2) by striking "Administrator, Agricultural Research Serv-
ice, Department of 
Agriculture."; 
(3) by striking Administrator, Agricultural Stabilization 
and Conservation Service, Department of Agriculture."; 
(4) 
by 
striking 
"Administrator, 
Farmers 
Home 
Administration."; 
(5) by striking "Administrator, Foreign Agricultural Serv-
ice, Department ofAgriculture."; 
108 STAT. 3238 
PUBLIC LAW 103-354—OCT. 13, 1994 
(6) by striking "Administrator, Rural 
Electrification 
Administration, Department of 
Agriculture."; 
(7) by striking "Administrator, Soil Conservation Service, 
Department of Agriculture."; 
(8) by striking "Chief Forester of the Forest Service, Depart-
ment of Agriculture."; 
(9) by striking "Director of Science and Education, Depart-
ment of Agriculture."; 
(10) by striking "Administrator, Animal and Plant Health 
Inspection Service, Department of 
Agriculture."; and 
(11) by striking "Administrator, Federal Grain Inspection 
Service, Department of 
Agriculture.". 
7 use 7013. 
SEC. 295. PROPOSED CONFORMING AMENDMENTS. 
Not later than 180 days after the date of the enactment of 
this Act, the Secretary shall submit to Congress recommended 
legislation containing additional technical and conforming amend-
ments to Federal laws that are required as a result of the enactment 
of this title. 
7 u s e 7014. 
SEC. 296. TERMINATION OF AUTHORITY. 
(a) IN GENERAL.—Subject to subsection (b), the authority dele-
gated to the Secretaiy by this title to reorganize the Department 
shall terminate on the date that is 2 years after the date of enact-
ment of this Act. 
(b) FUNCTIONS.—Subsection (a) shall not affect-
(1) the authority of the Secretary to continue to carry 
out a fimction that the Secretary performs on the date that 
is 2 years after the date of enactment of this Act; 
(2) the authority delegated to the Secretary under Reorga-
nization Plan No. 2 of 1953 (5 U.S.C. App.; 7 U.S.C. 2201 
note); or 
(3) the authority of an agency, office, officer, or employee 
of the Department to continue to perform all ftinctions delegated 
or assigned to the entity or person as of that termination 
date. 
TITLE III—MISCELLANEOUS 
SEC. 301. POULTRY LABELING. 
It is the sense of Congress that— 
(1) tlie United States Department of Agriculture should— 
(A) carry out the plans of the Department to hold 
public hearings for the purpose of receiving pubUc input 
on issues related to the conditions imder which poultry 
sold in the United States may be labeled "fi^sh"; and 
(6) finalize and publish a decision on the issues as 
expeditiously as possible after holding the hearings; and 
(2) no person serving on the expert advisory committee 
established to advise the Secretary of Agriculture on the issues 
should stand to profit, or represent any interest that would 
stand to profit, from the decision of the Department on the 
issues. 
PUBLIC LAW 103-354—OCT. 13, 1994 
108 STAT. 3239 
SEC. 802. FIRST AMENDMENT RIGHTS OF EMPLOYEES OF THE UNITED 7 USC 2231b. 
STA'Ii:S DEPARTMENT OF AGRICULTURE. 
Notwithstanding any other provision of law, no employee of 
the United States Department of Agriculture shall be peremptorily 
removed, on or after February 15, 1994, fi*om the position of the 
employee without an opportunity for a pubUc or nonpubUc hearing, 
at the option of tiie employee, because of remarks made during 
personal time iu opposition to poUcies, or proposed poUcies, of 
the Department, including poUcies or proposed policies regarding 
homosexuals. Any employee removed on or after February 15, 1994, 
without the opportunity for such a hearing shall be reinstated 
to the position of the employee pending such a nearing. 
SEC. 303. ADJUSTED COST OF THRIFTY FOOD PLAN. 
(a) IN GENERAL.—Section 3(oXll) of the Food Stamp Act of 
1977 (7 U.S.C. 2012(oXll)) is amended by inserting "and (in the 
case of households residing in Alaska) on October 1, 1994," after 
"1992,". 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 7 use 2012 note, 
shall be elBfective beginning on September 30,1994. 
SEC. 304. OFFICE OF RISK ASSESSMENT AND COST-BENEFTT ANALYSIS. 7 USC 2204e. 
(a) OFFICE OF RISK ASSESSMENT AND COST-BENEFIT ANALYSIS.— 
The Secretary of A^culture shall establish in the Department 
of Agriculture an Office of Risk Assessment and Cost-Benefit Analy-
sis, which shall be under the direction of a Director appointed 
by the Secretary. 
(b) FUNCTIONS.—^The Director shall ensure that any regulatory 
analysis that is conducted under this section includes a risk assess-
ment and cost-benefit analysis that is performed consistently and 
uses reasonably obtainable and sound scientific, technical, economic, 
and other data. 
(1) IN GENERAL.—^Effective six months after the date of 
enactment of this Act, the Secretary of Agriculture shall publish 
in the Federal Register, for each proposed major regulation 
the primary purpose of which is to regulate issues of human 
health, human safetj,^, or the environment that is promtdgated 
by the Department after the enactment of this Act, an amdysis 
with as much specificity as practicable, of— 
(A) the risk, incluaing the effect of the risk, to human 
health, human safety, or the environment, and any com-
bination thereof, addressed by the regulation, including, 
where appHcable and practicable, the health and safety 
risks to persons who are disproportionately exposed or 
particularly sensitive; 
(B) the costs associated with the implementation of, 
and compHance with, the regulation; 
(C) where appropriate and meaningfiil, a comparison 
of that risk relative to other similar risks regulated by 
the Department or other Federal Agency, resulting fix)m 
comparable 
activities 
and 
exposure 
pathways 
(such 
comparisons should consider relevant distinctions among 
risks, such as the voluntary or involuntary nature of risks 
and the preventability or nonpreventabiUty of risks); and 
(D) the quantitative and qualitative oenefits of the 
regulation, including the reduction or prevention of risk 
expected from the regulation. 
Federal 
Register, 
publication. 
108 STAT. 3240 
PUBLIC LAW 103-354—OCT. 13, 1994 
Where such a regulatory analysis is not practicable because of 
compelling circumstances, the Director shall provide an expl£uiation 
in lieu of conducting an analysis under this section. 
(2) EVALUATION.—^The regulatory analysis referred to in 
paragraph (1) should also contain a statement that the Sec-
retary of Agriculture evaluated— 
(A) whether the regulation wiU advance the purpose 
of protecting against the risk referred to in paragraph 
(1)(A); and 
(B) whether the regulation will produce benefits and 
. - 
reduce risks to human health, human safety, or the 
environment, and any combination thereof, in a cost-effec-
tive manner as a result of the implementation of and 
compUance with the regulation, by local, State, and Federal 
^ 
Government and other public and private entities, as esti-
mated in paragraph (1)(B). 
(3) This section shall not be construed to amend, modify, 
or alter any statute and shall not be subject to judicial review. 
This section shall not be construed to grant a cause of action 
to any person. The Secretary of Agriculture shall perform the 
analyses required in this section in such a manner that does 
not delay the promulgation or implementation of regulations 
mandated by statute or judicial order. 
(c) DEFINITION.—^As used in this section, the term "major regu-
lation" means any regulation that the Secretary of Agriculture 
estimates is likely to have an annual impact on the economy of 
the United States of $100,000,000 in 1994 dollars. 
7 use 2279a. 
SEC. 305. FAIR AND EQUITABLE TEIEATMENT OF SOCIALLY DISADVAN-
TAGED PRODUCERS. 
(a) FAIR CROP ACREAGE BASES AND FARM PROGRAM PAYMENT 
YIELDS.—If the Secretary of Agriculture determines that crop acre-
age bases or farm program payment yields established for farms 
owned or operated by socially disadvantaged producers are not 
estabUshed in accordance with title V of tiie Agricultural Act of 
1949 (7 U.S.C. 1461 et seq.), the Secretary shall adjust the bases 
and yields to conform to the requirements of such title and msike 
available any appropriate commodity program benefits. 
(b) 
FAIR APPLICATION OF CONSOLIDATED FARM AND RURAL 
DEVELOPMENT ACT.—If the Secretary of Agriculture determines 
that apphcation of the ConsoUdated Farm and Rural Development 
Act (7 U.S.C. 1921 et seq.) with respect to socially disadvantaged 
producers is not consistent with the requirements of such Act, 
the Secretary shall make such changes in the administration of 
such Act as the Secretary considers necessary to provide for the 
fair and equitable treatment of socially disaavant£iged producers 
^xiiider such Act 
(c) 
REPORT ON TREATMENT OF SOCIALLY DISADVANTAGED 
PRODUCERS.— 
(1) REPORT REQUIRED.—^The Comptroller General of the 
United States shall prepare a report to determine— 
(A) whether socially disadvantaged producers are 
underrepresented on State, coimty, area, or local commit-
tees estabUshed under section 8(b)(5) of the Soil Conserva-
tion and Domestic Allotment Act (16 U.S.C. 590h(b)(5)) 
or local review conraiittees estabUshed under section 363 
PUBLIC LAW 103-354—OCT. 13, 1994 
108 STAT. 3241 
of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1363) 
because of racial, ethnic, or gender prejudice; and 
(B) if such underrepresentation exists, whether it 
inhibits or interferes with the participation of socially dis-
advantaged producers in programs of the Department of 
Agriculture. 
(2) SUBMISSION OF REPORT.—Not later than February 1, 
1995, the Comptroller General shall submit the report required 
by this subsection to the Conmiittee on Agriciilture of the 
House of Representatives and the Committee on Agriculture, 
Nutrition, and Forestry of the Senate. 
(d) DEFINITION.—^For purposes of this section, the term "socially 
disadvantaged producer'' means a producer who is a member of 
a group whose members have been subjected to racial, ethnic, 
or gender prejudice because of their identity as members of a 
group without regard to their individual qualities. 
SEC. 306. AVIATION INSPECTIONS. 
7 USC 2204 note. 
(a) STUDY OF AIRCRAFT INSPECTIONS.— 
(1) INTENT OF STUDY.—^The intent of the study required 
by this subsection is to examine the cost efficiencies of conduct-
ing inspections of aircraft and pilots by one Federal agency 
without reducing aircraft, passenger, or pilot safety standards 
or lowering mission preparedness. 
(2) STUDY REQUIRED.—The Secretary of Agriculture and 
the Secretary of Transportation shall jointly conduct a study 
of the inspection specifications and procedures by which aircraft 
and pilots contracted by the Department are certified to deter-
mine the cost efficiencies of eliminating duphcative Department 
inspection requirements and transferring some or all inspection 
requirements to the Federal Aviation Administration, while 
ensuring that neither aircraft:, passenger, nor pilot safety is 
reduced and that mission preparedness is maintained. 
(3) SPECIAL CONSIDERATIONS.—In conducting the study, the 
Secretaries shall evaluate current inspection specifications and 
procedures mandated by the Department and the Forest Serv-
ice, taking into consideration the unique requirements and 
risks of particular Department and Forest Service missions 
that may require special inspection specifications and proce-
dures to ensure the safety of Department and Forest Service 
personnel and their contractees. 
(4) MAINTENANCE OF STANDARDS AND PREPAREDNESS.—In 
making recommendations to transfer inspection authority or 
otherwise change Department inspection specifications and 
procedures, the Secretaries shall ensure that the implementa-
tion of any such recommendations does not lower aircraft or 
pilot standards or preparedness for Department or Forest Serv-
ice missions. 
(5) SUBMISSION OF RESULTS.—Not later than 180 days after 
the date of the enactment of this Act, the Secretaries shall 
submit to Congress the resiilts of the study, including any 
recommendations to transfer inspection authority or otherwise 
change Department inspection specifications and pi*ocedures 
and a cost-benefit analysis of such recommendations. 
(b) REVIEW OF RECENTLY ADOPTED AIRCRAFT POUCY.— 
108 STAT. 3242 
PUBLIC LAW 103-354—OCT. 13, 1994 
(1) REVIEW REQUIRED.—^The Secretaries shall review the 
pohcy initiated by the Secretary of Agriculture on July 1, 1994, 
to accept Federal Aviation Administration inspections on air-
craft and pilots that provide "airport to airport" service for 
the Forest Service. The poUcy is currently being cooperatively 
developed by the Department and the Federal Aviation 
Administration and is mtended to reduce dupHcative inspec-
tions and to reduce Grovemment costs, while maintaining air-
craft, passenger, and pilot safety standards, specifications and 
procedures cxurently required by the Department and the For-
est Service. 
(2) EXPANSION OF POLICY.—As part of the review, the Sec-
retaries shall examine the feasibility and desirabihty of apply-
ing this poUcy on a Government-wide basis. 
(3) SUBMISSION OF RESULTS.—Not later than one year after 
the date of the implementation of the policy, the Secretary 
of Agriculture shall submit to Congress the results of the 
review, including any recommendations that the Secretary 
considers appropriate. 
Approved October 13, 1994. 
L E G I S L A T I V E H I S T O R Y — H . R . 4217 (S. 2095): 
HOUSE REPORTS: No. 103-649 (Comm. on Agriculture). 
SENATE REPORTS: No. 103-301 accompanying S. 2095 (Ck)mm. on Agriculture, 
Nutrition, and Forestry). 
CONGRESSIONAL RECORD, Vol. 140 (1994): 
Aug. 5, considered and passed House. 
Aug. 25, considered and passed Senate, amended, in lieu of S. 2095. 
Oct. 3, House concurred in Senate amendment with an amendment. 
Oct. 4, Senate concurred in House amendment. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 30 (1994): 
Oct. 13, Presidential statement.