Food, Agriculture, Conservation, and Trade Act of 1990
PL 101-624 (S.2830), enacted 11/28/1990

PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3359 
Public Law 101-624 
101st Congress 
An Act 
To extend and revise agricultural price support and related programs, to provide for 
agricultural export, resource conservation, farm credit, and £igricultural research 
Nov. 28, 1990 
and related programs, to ensure consumers an abundance of food and fiber at 
[S. 2830] 
reasonable prices, and for other purposes. 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled. 
Food. 
Agriculture, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
Conservation, 
(a) SHORT TITLE.—This Act may be cited as the "Food, Agriculture, 1990. ^^ ^ ^ ° 
Conservation, and Trade Act of 1990". 
7 use I42i note. 
(b) TABLE OF CONTENTS.—The table of contents is as follows: 
TITLE I—DAIRY 
Sec. 101. Milk price support and milk inventory management prc^ram for calendar 
years 1991 through 1995. 
Sec. 102. Milk manufacturing mai^^ adjustment. 
Sec. 103. Minnesota-Wisconsin price series reform. 
Sec. 104. Hearings on Federsil milk marketing orders. 
Sec. 105. Report of dairy product purchases. 
Sec. 106. Application of support price for milk. 
Sec. 107. Application of amendments. 
Sec. 108. Adjustments for seasonal production; hesuings on amendments; determi-
nation of milk prices. 
Sec. 109. Transfer of dairy products to the military and veterans hospitals. 
Sec. 110. Extension of the dairy indemnity program. 
Sec. 111. Export sales of dairy products. 
Sec. 112. Component pricing of milk. 
Sec. 113. Adjustments in pajrments by handlers. 
Sec. 114. Dairy export incentive program. 
• 
Sec. 115. Status of producer handlers. 
Sec. 116. Multiple component pricing study. 
TITLE II—WOOL AND MOHAIR 
Sec. 201. Wool and mohair price support program. 
TITLE m—WHEAT 
Sec. 301. Loans, payments, and acreage reduction programs for the 1991 through 
1995 crops of wheat. 
Sec. 302. Nonapplicability of certificate requirements. 
Sec. 303. Suspension of Ifmd use, wheat marketing allocation, and producer certifi-
cate provisions. 
Sec. 304. Suspension of certain quota provisions. 
Sec. 305. Nonapplicability of section 107 of the Agricultural Act of 1949 to the 1991 
through 1995 crops of wheat. 
TITLE rv—FEED GRAINS 
Sec. 401. Loans, payments, and acreage reduction programs for the 1991 through 
1995 crops of feed grains. 
Sec. 402. Nonapplicability of section 105 of the Agricultural Act of 1949 to the 1991 
through 1995 crops of feed grains. 
Sec. 403. Recourse loan program for silage. 
Sec. 404. Price support for high moisture feed grains. 
Sec. 405. Calculation of refunds of advance established price payments by producers 
of the 1988 or 1989 crops of feed barley. 
104 STAT. 3360 
PUBLIC LAW 101-624—NOV. 28, 1990 
TITLE V—COTTON 
Sec. 501. Loans, pajonents, and acreage reduction programs for the 1991 through 
1995 crops of upland cotton. 
Sec. 502. Suspension of base acreetge allotments, marketing quotas, and related pro-
visions. 
Sec. 503. Miscellaneous cotton provisions. 
Sec. 504. Skiprow practices. 
Sec. 505. Preliminary allotments for 1996 crop of upland cotton. 
Sec. 506. Extra long staple cotton program. 
Sec. 507. Cottonseed and cottonseed oU price support. 
Sec. 508. Security interests. 
TITLE VI—RICE 
Sec. 601. Loans, payments, and acreage reduction programs for the 1991 through 
1995 crops of rice. 
TITLE Vn—OILSEEDS 
Sec. 701. Loans and pajrments for oilseeds for 1991 through 1995 marketing years. 
TITLE Vni—PEANUTS 
Sec. 801. Suspension of marketing quotas and acreage allotments. 
Sec. 802. National poundage quotas and acreage allotments. 
Sec. 803. Sale, lease, or transfer of farm poundage quota. 
Sec. 804. Marketing penalties; disposition of additional peanuts. 
Sec. 805. Experimental and research prc^ams for peanuts. 
Sec. 806. Price support program. 
Sec. 807. Reports jmd records. 
Sec. 808. Suspension of certain price support provisions. 
Sec. 809. Regulations. 
TITLE K—SUGAR 
Sec. 901. Sugar price support. 
Sec. 902. Marketing allotments for sugar and crystalline fructose. 
Sec. 903. Reports on quota allocations to countries importing sugar. 
TITLE X—HONEY 
^ 
Sec. 1001. Honey price support. 
Sec. 1002. Loan forfeiture limitation. 
TITLE XI—GENERAL COMMODITY PROVISIONS 
Subtitle A—Acreage Base and Yield System 
Sec. 1101. Acreage base and yield system. 
Subtitle B—Pa)mient Limitations 
Sec. 1111. Pajrment limitations. 
Subtitle C—Provisions Related to Agricultural Act of 1949 
Sec. 1121. Deficiency and land diversion pajrments. 
Sec. 1122. Commodity certificates. 
Sec. 1123. Farmer owned reserve program. 
Sec. 1124. Comparability of storage pajmients. 
Sec. 1125. Supplemental set-aside and acreage limitation authority. 
Sec. 1126. Disaster payments. 
Sec. 1127. Increase in support levels. 
Sec. 1128. Adjustment of support prices. 
Sec. 1129. Program option for 1996 crops. 
Sec. 1130. Commodity Credit Corporation sales price restrictions. 
Sec. 1131. Application of terms in the Agricultural Act of 1949. 
Sec. 1132. Producer appeals process. 
Subtitle E>—Miscellaneous Commodity Provisions 
Sec. 1141. Normally planted acreage. 
Sec. 1142. Normal supply. 
Sec. 1143. Food security wheat reserve. 
Sec. 1144. Determinations of the Secretary. 
Sec. 1145. National Agriculturfd Cost of Piroduction Standards Review Board. 
Sec. 1146. Assignment of payments. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3361 
Sec. 1147. Financial impact study. 
Sec. 1148. Survey of program participants. 
Subtitle E—Options Pilot Program 
Sec. 1151. Short title. 
Sec. 1152. Purposes. 
Sec. 1153. Options pilot program. 
Sec. 1154. Terms and conditions. 
Sec. 1155. Commodity futures trading industry. 
Sec. 1156. Commodity Credit Corporation. 
Subtitle F—Conforming Amendments 
Sec. 1161. Conforming £miendments. 
Subtitle G—Effective Date 
Sec. 1171. Effective date. 
TITLE Xn—STATE AND PRIVATE FORESTRY 
Sec. 1201. Short title. 
Subtitle A—Cooperative Forestry Assistance Act of 1978 
Sec. 1211. References. 
Sec. 1212. Findings, purpose, and policy. 
Sec. 1213. Rural forestry assistance. 
Sec. 1214. Forest incentives program. 
Sec. 1215. Forest stewardship program. 
Sec. 1216. Stewardship incentive program. 
Sec. 1217. Forest legacy program. 
Sec. 1218. Forest health protection. 
Sec. 1219. Urban and community forestry assistance. 
Sec. 1220. Fireflghting preparedness and mobilization assistance. 
Sec. 1221. Statement of limitation. 
Sec. 1222. Federal, State, and local coordination and cooperation. 
Sec. 1223. Administration. 
Sec. 1224. Conforming amendments. 
Subtitle B—Research and Education 
CHAPTER 1—GENERAL RESEARCH PROGRAMS 
Sec. 1231. Mclntire-Stennis research pr(^am. 
Sec. 1232. Competitive forestry, natural resources, and environmental grants pro-
gram. 
CHAPTER 2—SPECIAUZED RESEARCH 
Sec. 1241. Research and utilization. 
Sec. 1242. Southern Forest Regeneration Program. 
Sec. 1243. Semiarid Agroforestry Research Center. 
Sec. 1244. Forest Ismd protection. 
Sec. 1245. Presidential Commission on State and Private Forests. 
Sec. 1246. Blue Mountain Natural Resource Institute. 
Sec. 1247. International Forest Products Trade Institute. 
CHAPTER 3—EDUCATION 
Sec. 1251. Extension. 
Sec. 1252. Forestry student grant program. 
Subtitle C—America the Beautiful 
Sec. 1261. Short title. 
Sec. 1262. Findings. 
Sec. 1263. Purposes. 
Sec. 1264. Tree planting foundation. 
Sec. 1265. Rural tree planting and forest management program. 
Sec. 1266. Community tree planting and improvement program. 
Subtitle D—Miscellaneous Provisions 
Sec. 1271. Emergency reforestation assistance. 
Sec. 1272. Talladega National Forest expansion. 
104 STAT. 3362 
PUBLIC LAW 101-624—NOV. 28, 1990 
TITLE Xin—FRUITS, VEGETABLES, AND MARKETING 
Subtitle A—Fruits and Vegetables 
Sec. 1301. Findings. 
Sec. 1302. Purposes. 
Sec. 1303. Declaration. 
Sec. 1304. Study of the fruit and v^etable industry. 
Sec. 1305. Country of origin labeling programs. 
Sec. 1306. Enforcement of hemdler assessments. 
Sec. 1307. Kiwifruit and other fruit. 
Sec. 1308. Marketing orders. 
Sec. 1309. Products produced in distinct geographic areas. 
Subtitle B—Nationed Laboratory Accreditation 
Sec. 1321. Definitions. 
Sec. 1322. National laboratory accreditation program. 
Sec. 1323. Accreditation. 
Sec. 1324. Samples. 
Sec. 1325. Application. 
Sec. 1326. Reporting. 
Sec. 1327. Fees. 
Sec. 1328. Public disclosure. 
Sec. 1329. Regulations. 
Sec. 1330. Effect of other laws. 
Subtitle C—Cosmetic Appearance 
Sec. 1351. Definition. 
Sec. 1352. Research. 
Sec. 1353. Changes in procedural r^ulations. 
Sec. 1354. Authorization of appropriations. 
Subtitle D—Miscellaneous 
Sec. 1361. Amendment to the Perishable Agricultural Commodities Act. 
Sec. 1362. Wine and winegrape industry study. 
TITLE XrV—CONSERVATION 
Sec. 1401. Short title. 
Subtitle A—Highly Erodible Land Conservation 
Sec. 1411. Program ineligibility. 
Sec. 1412. Exemptions. 
Subtitle B—Wetland Conservation 
Sec. 1421. Wetland program improvements. 
Sec. 1422. Delineation of wetland; exemptions. 
Sec. 1423. Consultation. 
Sec. 1424. Fairness of compliance. 
Subtitle C—Agricultural Resources Conservation Program 
Sec. 1431. Agricultural Resources Conservation Program. 
Sec. 1432. Conservation Reserve Program. 
Sec. 1433. Duties of owners and operators. 
Sec. 1434. Payments. 
Sec. 1435. Conversion of land subject to contract. 
Sec. 1436. Extended base protection. 
Sec. 1437. Study of land use for expiring contracts and extension of authority. 
Sec. 1438. Wetlands reserve program. 
Sec. 1439. Agricultural water quality incentives. 
Sec. 1440. Environmental easement program. 
Sec. 1441. Tree planting initiative. 
Sec. 1442. Administration of conservation programs. 
Sec. 1443. Authorization of appropriations. 
Sec. 1444. Monitoring and evaluation. 
Sec. 1445. Assistance for control of the spread of weeds and pests. 
Sec. 1446. State Technical Committee. 
Sec. 1447. Technical and conforming amendments. 
Subtitle D—Other Conservation Measures 
Sec. 1451. Integrated Farm Management Program Option. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3363 
Sec. 1452. Resource conservation and development program. 
Sec. 1453. Amendment to the Noxious Weed Act. 
Sec. 1454. Identifying the effects of Federal programs. 
Sec. 1455. Great Plains conservation program. 
Sec. 1456. Composting research and extension program. 
Subtitle E—Watershed Protection and Flood Prevention Act; Farmland Protection 
CHAPTER 1—WATERSHED PROTECTION AND FLOOD PREVENTION 
Sec. 1461. Relation of benefits to agriculture. 
Sec. 1462. Cost share assistance. 
Sec. 1463. Data. 
Sec. 1464. Amendment to the Watershed Protection and Flood Prevention Act. 
CHAPTER 2—FARMLAND PROTECTION 
Sec. 1465. Short title, purpose, and definition. 
Sec. 1466. Establishment of program. 
Sec. 1467. Federal accounts. 
Sec. 1468. Applications and administration. 
Sec. 1469. Report. 
Sec. 1470. Implementation and effective date. 
Subtitle F—Administration of Environmental Programs 
Sec. 1471. Establishment of the Agricultural Council on Environmental Quality. 
Sec. 1472. Office of Agricultural Environmental Quality. 
Sec. 1473. Environmental quality policy statement. 
Subtitle G—Water Quality Research, Education, and Coordination 
Sec. 1481. Short title, purpose, definitions, and authorization of appropriations. 
Sec. 1482. Soil and water activities. 
Sec. 1483. State Water Quality Coordination Program. 
Sec. 1484. Water quality and nutrient management research. 
Sec. 1485. Repository of agriculture and ground water quality planning informa-
tion. 
Subtitle H—Pesticides 
Sec. 1491. Pesticide recordkeeping. 
Sec. 1492. Data in support of registration. 
Sec. 1493. Reduction or waiver of fees for pesticides registered for minor agricultur-
al uses. 
Sec. 1494. Voluntary cancellation. 
Sec. 1495. Pest control. 
Sec. 1496. Conforming amendments to table of contents. 
Sec. 1497. Inter-Regional Research Project Number 4 (IR-4 Program). 
Sec. 1498. Biological pesticide handling study. 
Sec. 1499. Water policy with respect to agrichemicals. 
TITLE XV—AGRICULTURAL TRADE 
Sec. 1501. Short title. 
Subtitle A—Agricultural trade development and assistance act of 1954 
Sec. 1511. Short title. 
Sec. 1512. Agricultural Trade Development and Assistance Act of 1954. 
Sec. 1513. Effective date. 
Sec. 1514. Amendments to section 416 of the Agricultural Act of 1949. 
Sec. 1515. Conforming amendments and technical changes. 
Sec. 1516. Food for progress. 
Sec. 1517. Debt-for-health-and-protection swap. 
Subtitle B—Shipping provisions 
Sec. 1521. Exemption of American great lakes vessels from restriction on carriage 
of preference cargoes. 
Sec. 1522. Designation of American great lakes vessels. 
Sec. 1523. Restrictions on operations of American great lakes vessels. 
Sec. 1524. Revocation and termination of designation. 
Sec. 1525. Allocation based on lowest landed cost. 
Sec. 1526. Study and report. 
Sec. 1527. Definitions. 
104 STAT. 3364 
PUBLIC LAW 101-624—NOV. 28, 1990 
Subtitle C—Export promotion 
Sec. 1531. Amendment to the Agricultural Trade Act of 1978. 
Sec. 1532. Amendment to the Agricultural Act of 1954. 
Subtitle D—General Provisions 
Sec. 1541. Cottonseed oil and sunflower oil exports. 
Sec. 1542. Promotion of agricultural exports to emerging democracies. 
Sec. 1543. Agricultural fellowship program for middle income countries and emerg-
ing democracies. 
Sec. 1544. Assistance in furtherance of narcotics control objectives of the United 
States. 
Sec. 1545. World livestock market price information. 
Subtitle E—Studies, Reports, and Other Provisions 
Sec. 1551. Study of North American free trade area. 
Sec. 1552. Rose and flower study. 
Sec. 1553. C!ommodity transportation and technology assessment and report. 
Sec. 1554. Report on section 22 suspension or termination. 
Sec. 1555. Agricultural exports to the european community. 
Sec. 1556. Language proficiency and evaluation of foreign agricultural service offi-
cers. 
Sec. 1557. Reporting requirements relating to tobacco. 
Sec. 1558. Report on origin of exports of peanuts. 
Sec. 1559. Sense of Ck>ngress concerning rebalancing proposal of the european com-
munity. 
Sec. 1560. Sense of the Senate r^arding multilateral trade negotiations. 
Subtitle F—Conforming provisions and technical changes 
Sec. 1571. Amendments to the Omnibus Trade and Competitiveness Act of 1988. 
Sec. 1572. Amendments to the Food Security Act of 1985. 
Sec. 1573. Amendments to the Agriculture and Food Act of 1981. 
Sec. 1574. Amendment to the Food for Peace Act of 1966. 
Sec. 1575. Amendment to the Agricultural Act of 1949. 
Sec. 1576. Amendment to the Agricultural Act of 1956. 
Sec. 1577. Amendment to the Agricultural Technical Corrections Act. 
Sec. 1578. Amendment to the .^ricultural Act of 1970. 
TITLE XVI—RESEARCH 
Subtitle A—Extensions and Changes to Ebdsting Programs 
Sec. 1601. Increased authorizations for, and the extension or repeal of, existing pro-
grams. 
Sec. 1602. Purposes of the agricultural research imd extension system. 
Sec. 1603. Definitions. 
Sec. 1604. Joint Council on Food and Agricultural Sciences and National Agricul-
tural Research and Extension Users Advisory Board. 
Sec. 1605. Agricultural Science and Technology Review Board. 
Sec. 1606. National Agricultural Library. 
Sec. 1607. Grants to enhance research capacity in schools of veterinary medicine. 
Sec. 1608. Grants and fellowships for food and eigricultural sciences education. 
Sec. 1609. Grants for research on the production and marketing of alcohols and in-
dustrial hydrocarbons from agricultural commodities and forest prod-
ucts. 
Sec. 1610. Food Science and Nutrition Research Center. 
Sec. 1611. Animal health and disease research study and Animal Health Science 
Rraearch Advisory Board. 
Sec. 1612. Grant programs for 1890 land-grant colleges, including Tusk^ee Univer-
sity. 
Sec. 1613. International agricultural science, education, and development and inter-
national trade development centers. 
Sec. 1614. Aquaculture assistance programs. 
Sec. 1615. National competitive research initiative. 
Sec. 1616. Special research grants. 
Sec. 1617. Minimization of conflicts of interest of employees of colleges receiving 
funds under the Smith-Lever Act. 
Sec. 1618. Agricultural experiment stations and transportation of virus of foot-and-
mouth disease. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3365 
Subtitle B—Sustainable Agriculture Research and Education 
Sec. 1619. Purpose and definitions. 
Sec. 1620. Repeal of agricultural productivity research. 
CHAPTER 1—BEST UTIUZATION OF BIOLOGICAL APPUCATIONS 
Sec. 1621. Research and extension projects. 
Sec. 1622. Program administration. 
Sec. 1623. Federal-State matching grant program. 
Sec. 1624. Authorization of appropriations. 
CHAPTER 2—INTEGRATED MANAGEMENT SYSTEMS 
Sec. 1627. Integrated management systems. 
CHAPTER 3—SUSTAINABLE AGRICULTURE TECHNOLOGY DEVELOPMENT AND TRANSFER 
PROGRAM 
Sec. 1628. Technical guides and handbooks. 
Sec. 1629. National Treiining Program. 
Subtitle C—National Genetics Resources Program 
Sec. 1632. Establishment, purpose, and functions of the National Genetic Resources 
Program. 
Sec. 1633. Appointment and authority of Director. 
Sec. 1634. Advisory council. 
Sec. 1635. Definitions and authorization of appropriations. 
Subtitle D—National Agricultural Weather Information System 
Sec. 1637. Short title and purposes. 
Sec. 1638. Agricultural Weather Office. 
Sec. 1639. National Advisory Board on Agricultural Weather. 
Sec. 1640. State agricultural weather information systems. 
Sec. 1641. Funding. 
Subtitle E—Research Regarding the Production, Preparation, Processing, Handling, 
and Storage of Agricultural Products 
Sec. 1644. Research and grant program. 
Sec. 1645. Advisory committee and grant process. 
Sec. 1646. Reports to Congress. 
Sec. 1647. Authorization of appropriations. 
Subtitle F—Plant and Animal Pest and Diseeise Control Program 
Sec. 1650. Plant and animal pest and disease control program. 
Sec. 1651. Pest and disease control data base and pesticide resistance monitoring. 
Sec. 1652. Research on exotic pests. 
Sec. 1653. Study of the biology and behavior of chinch bugs, including factors lead-
ing to crop loss and development of improved management practices. 
Sec. 1654. Authorization of appropriations. 
Subtitle G—Alternative Agricultural Research and Commercieilization 
Sec. 1657. Short title, purposes, and definitions. 
Sec. 1658. Alternative Agricultured Research and Commercialization Center. 
Sec. 1659. Alternative .^ricultural Research and Commercialization Board. 
Sec. 1660. Research and development grants, contracts, and agreements. 
Sec. 1661. Commercialization assistsmce. 
Sec. 1662. Greneral rules regarding the provision of assistance. 
Sec. 1663. Regional centers. 
Sec. 1664. Alternative Agricultural Research and Commercialization Revolving 
Fund. 
Subtitle H—Miscellaneous Research Provisions 
Sec. 1668. Biotechnology risk assessment research. 
Sec. 1669. Graduate school of the Department of Agriculture. 
Sec. 1670. Livestock product safety and inspection program. 
Sec. 1671. Plant genome mapping program. 
Sec. 1672. Specialized research programs. 
Sec. 1673. A^cultural telecommunications program. 
Sec. 1674. Commission on agricultural research facilities. 
Sec. 1675. National centers for agricultural product quality research. 
Sec. 1676. Turkey research center. 
104 STAT. 3366 
PUBLIC LAW 101-624—NOV. 28, 1990 
Sec. 1677. Reservation extension agents. 
Sec. 1678. Special grant to study constraints on agricultural trade. 
Sec. 1679. Pilot project to coordinate food and nutrition education programs. 
Sec. 1680. Assistive technology program for farmers with disabilities. 
Sec. 1681. Research on honeybee diseases. 
TITLE XVn—FOOD STAMP AND RELATED PROVISIONS 
Sec. 1701. Short title. 
Subtitle A—Food Stamp Program 
Sec. 1711. References to the Food Stamp Act of 1977. 
Sec. 1712. Recipients of aged, blind, and disabled benefits in the territories. 
Sec. 1713. Restaurant meals at concessional prices for the homeless. 
Sec. 1714. Categorical eligibility for recipients of general assistance. 
Sec. 1715. Exclusion of education benefits. 
Sec. 1716. Exclusion of clothing allowances. 
Sec. 1717. Excess medical expense deduction. 
Sec. 1718. Budgeting and monthly reporting. 
Sec. 1719. Simplifying resource and eligibility determinations. 
Sec. 1720. Emergency food for disaster victims. 
Sec. 1721. Transitional housing. 
Sec. 1722. Exclusion of general assistance payments. 
Sec. 1723. Budgeting and monthly reporting on reservations. 
Sec. 1724. Periodic eligibility information reports. 
Sec. 1725. Selection of household head by household. 
Sec. 1726. Expansion of emplojmient and training program. 
Sec. 1727. Eligibility for students. 
Sec. 1728. Staggered issuances; reservations. 
Sec. 1729. Electronic benefits issuance. 
Sec. 1730. Minimum benefit. 
Sec. 1731. Issuance of aggregate allotments. 
Sec. 1732. State flexibility in assisting households. 
Sec. 1733. Periodic reauthorization of retail food stores and wholesale food con-
cerns. 
Sec. 1734. Authorization of wholesale food concerns. 
Sec. 1735. Required submission of certain identifying information by retail food 
stores and wholesale food concerns. 
Sec. 1736. Simplified application requirements. 
Sec. 1737. Estimates in lieu of verification for homeless households with shelter 
costs. 
Sec. 1738. Rural issuance procedures. 
Sec. 1739. Nutrition education. 
Sec. 1740. Food stamp application for general assistance households. 
Sec. 1741. Applicants for supplemental security income. 
Sec. 1742. Audit of simplified food stamp applications at Social Security Adminis-
tration offices. 
Sec. 1743. Permanent disqualification. 
Sec. 1744. Fines for acceptance of loose coupons. 
Sec. 1745. Fines for unauthorized third parties that accept food stamps. 
Sec. 1746. Fraud claims repayment. 
Sec. 1747. Computer fraud penalties. 
Sec. 1748. Unlawful use of coupons in laundering monetary instruments. 
Sec. 1749. Coupon trafficking. 
Sec. 1750. Retention of funds or allotments recovered or collected by States. 
Sec. 1751. Quality control sanctions. 
Sec. 1752. Federal match for automation. 
Sec. 1753. Emplojrment and training allocations. 
Sec. 1754. Extension of pilot projects. 
Sec. 1755. Sales taxes in cash-out demonstration projects. 
Sec. 1756. Enhanced waiver authority for demonstration projects. 
Sec. 1757. Demonstration projects for vehicle exclusion limit. 
Sec. 1758. Demonstration projects for AFDC/food stamp simplification. 
Sec. 1759. Grants to improve food stamp participation. 
Sec. 1760. Reauthorization of food stamp program. 
Sec. 1761. Nutrition education improvements. 
Sec. 1762. Nutrition assistance program in Puerto Rico. 
Sec. 1763. Automated data processing and information retrieval sjrstems. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3367 
Subtitle B—Commodity Distribution Programs 
Sec. 1771. Ck>mmodity distribution prc^am; commodity supplemental food pro-
grams. 
Sec. 1772. Emergency food assistance program. 
Sec. 1773. Commodity distribution reform. 
Sec. 1774. Hunger prevention programs. 
Sec. 1775. Reprocessing agreements with private companies. 
Sec. 1776. Nutrition education reauthorization. 
Sec. 1777. Notifying shelters of charitable institutions prc^am. 
Sec. 1778. Welfare Simplification and Coordination Advisory Committee. 
Sec. 1779. School lunch studies. 
Subtitle C—Effective Dates 
Sec. 1781. Effective dates. 
TITLE XVm—CREDIT 
Subtitle A—Farmers Home Administration Loans 
Sec. 1801. References to the Consolidated Farm and Rural Development Act. 
Sec. 1802. Soil and water loans. 
Sec. 1803. Interest rate on farm ownership loans and operating loans made to 
limited resource borrowers. 
Sec. 1804. Guarantee of payment by Department of Hawaiian Home Lands. 
Sec. 1805. Debt settlement. 
Sec. 1806. Documentation for approval of security transfer. 
Sec. 1807. Notice of loan service programs. 
Sec. 1808. Underwriting forms and standards. 
Sec. 1809. County committees. 
Sec. 1810. Certification of loan eligibility. 
Sec. 1811. Business and industry and community facility loans. 
Sec. 1812. Appeals. 
Sec. 1813. Disposition of suitable property. 
Sec. 1814. Dennitions. 
Sec. 1815. Extension of eligibility for conservation easements; assistance to borrow-
ers. 
Sec. 1816. Debt restructuring and loan servicing. 
Sec. 1817. Distribution of funds on Indian reservations. 
Sec. 1818. Borrower training. 
Sec. 1819. Loan assessments. 
Sec. 1820. Supervised credit. 
Sec. 1821. Market placement. 
Sec. 1822. Sense of Congress r^arding assistance for qufilified beginning farmers or 
ranchers. 
Sec. 1823. Sense of Congress regarding FmHA loan application review and loan 
servicing. 
Sec. 1824. Prohibition on use of loans for certain purposes. 
Subtitle B—Farm Credit System 
Sec. 1831. References to the Farm Credit Act of 1971. 
Sec. 1832. Financing for basic processing and marketing operations owned by bona 
fide producers. 
Sec. 1833. Restoration of first lien on stock. 
Sec. 1834. Insurance services. 
Sec. 1835. Clarification of contents of certified statements. 
Sec. 1836. Termination date for Farm Credit ^stem Assistance Board. 
Sec. 1837. Employment of certain persons by Farm Credit System institutions. 
Sec. 1838. Termination of System institution status of California Livestock Produc-
tion Credit Association. 
Sec. 1839. Secondary market for guaranteed farmer program loans. 
Sec. 1840. Authority 
of 
Farm 
Credit 
Administration 
to 
r^ulate 
Federal 
Agricultural Morteage Corporation. 
Sec. 1841. Exclusion of Farm Credit Administration from Senior Executive Service. 
Sec. 1842. GAO study of rural credit cost and availability. 
Sec. 1843. Salaries and compensation paid by System institutions. 
Subtitle C—Miscellaneous 
Sec. 1851. Economic emergency loan program. 
Sec. 1852. Authorization of appropriations for farm ownership outreach program to 
socially disadvantaged individuals. 
Sec. 1853. State mediation programs. 
104 STAT. 3368 
PUBLIC LAW 101-624—NOV. 28, 1990 
Sec. 1854. Indian land acquisition program. 
Subtitle D—EfTective Dates 
Sec. 1861. Effective dates. 
TITLE XIX—AGRICULTURAL PROMOTION 
Sec. 1901. Short title. 
Subtitle A—Pecans 
Sec. 1905. Short title. 
Sec. 1906. Findings and declaration of policy. 
Sec. 1907. Definitions. 
Sec. 1908. Issuance of plans. 
Sec. 1909. R^ulations. 
Sec. 1910. Required terms in plans. 
Sec. 1911. Permissive terms in plans. 
Sec. 1912. Assessments. 
Sec. 1913. Petition and review. 
Sec. 1914. Enforcement. 
Sec. 1915. Investigations and power to subpoena. 
Sec. 1916. Requirement of referendimi. 
Sec. 1917. Suspension or termination of plan. 
Sec. 1918. Autiiorization of appropriations. 
Subtitle B—Mushrooms 
Sec. 1921. Short title. 
Sec. 1922. Findings and declaration of policy. 
Sec. 1923. Definitions. 
Sec. 1924. Issuance of orders.' 
Sec. 1925. Required terms in orders. 
Sec. 1926. Referenda. 
Sec. 1927. Petition and review. 
Sec. 1928. Enforcement. 
Sec. 1929. Investigations and power to subpoena. 
Sec. 1930. Savings provision. 
Sec. 1931. Suspension or termination of orders. 
Sec. 1932. Authorization of appropriations. 
Sec. 1933. R^ulations. 
Subtitle C—Potatoes 
Sec. 1935. Short title. 
Sec. 1936. Findings and declaration of policy. 
Sec. 1937. Definitions. 
Sec. 1938. Authority to issue a plan. 
Sec. 1939. Notice and hearings. 
Sec. 1940. Required terms in plans. 
Sec. 1941. Permissive terms in plans. 
Sec. 1942. Assessments. 
Sec. 1943. Investigation and power to subpoena. 
Sec. 1944. Requirement of referendum. 
Sec. 1945. Suspension or termination of plans. 
Sec. 1946. Amendment procedure. 
Subtitle D—Limes 
Sec. 1951. Short title. 
Sec. 1952. Findings, purposes, and limitations. 
Sec. 1953. Definitions. 
Sec. 1954. Issuance of orders. 
Sec. 1955. Required terms in orders. 
Sec. 1956. Permissive terms in orders. 
Sec. 1957. Petition and review. 
Sec. 1958. Enforcement. 
Sec. 1959. Investigations and power to subpoena. 
Sec. 1960. Initial referendum. 
Sec. 1961. Suspension and termination. 
Sec. 1962. Authorization of appropriations. 
Sec. 1963. Regulations. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3369 
Subtitle E—Soybeans 
Sec. 1965. Short title. 
Sec. 1966. Findings and declaration of policy. 
Sec. 1967. Definitions. 
Sec. 1968. Issuance and £imendment of orders. 
Sec. 1969. Required terms in orders. 
Sec. 1970. Referenda. 
Sec. 1971. Petition and review. 
Sec. 1972. Enforcement. 
Sec. 1973. Investigations and power to subpoena. 
Sec. 1974. Administrative provisions. 
Sec. 1975. Suspension or termination of orders. 
Sec. 1976. Authorization of appropriations; regulations. 
Subtitle F—Honey and Wool 
CHAPTER 1—HONEY 
Sec. 1981. Short title. 
Sec. 1982. Definitions. 
Sec. 1983. Required terms in orders. 
Sec. 1984. Assessments. 
Sec. 1985. First reconfirmation referendum. 
Sec. 1986. Investigations and power to subpoena. 
Sec. 1987. Conforming amendment to order. 
CHAPTER 2—WOOL 
Sec. 1989. Promotion program. 
Subtitle G—Cotton 
Sec. 1990. Short title. 
Sec. 1991. Findings and declaration of policy. 
Sec. 1992. Required terms in order; cotton imports. 
. 
Sec. 1993. Requirements for referenda. 
Sec. 1994. Suspension and termination of orders. 
Sec. 1995. Amendments to the order. 
Sec. 1996. Producer refunds. 
Sec. 1997. Definitions. 
Sec. 1998. Reports. 
Subtitle H—Processor-Funded Milk Promotion Program 
Sec. 1999A. Short title. 
Sec. 1999B. Findings and declaration of policy. 
Sec. 1999C. Definitions. 
, , 
Sec. 1999D. Authority to issue orders. 
Sec. 1999E. Notice and comment. 
Sec. 1999F. Findings and issuance of orders. 
Sec. 1999G. Regulations. 
Sec. 1999H. Required terms in orders. 
Sec. 19991. Permissive terms. 
. . . 
Sec. 1999J. Assessments. 
Sec. 1999K. Petition and review. 
Sec. 1999L. Enforcement. 
Sec. 1999M. Investigations and power to subpoena. 
Sec. 1999N. Requirement of initial referendum. 
Sec. 19990. Suspension or termination of orders. 
Sec. 1999P. Amendments. 
Sec. 1999Q. Independent evaluation of programs. 
Sec. 1999R. Authorization of appropriations. 
Subtitle I—Miscellaneous Provisions 
Sec. 1999S. Producer research and promotion board accountability. 
Sec. 1999T. Consistency with international obligations of the United States. 
TITLE XX—GRAIN QUALITY 
Sec. 2001. Short title. 
Sec. 2002. Committee on Grain Quality and Grain Quality Coordinator. 
Sec. 2003. Benefits and costs associated with improved grain quality. 
Sec. 2004. Classification, grades and standards design framework. 
Sec. 2005. Improving the cleanliness of grain. 
104 STAT. 3370 
PUBLIC LAW 101-624—NOV. 28, 1990 
Sec. 2006. Grade determining factors related to physical soundness and purity. 
Sec. 2007. Testing for aflatoxin contamination of corn shipped in foreign commerce. 
Sec. 2008. Prohibition of contamination. 
Sec. 2009. Standardizing commercial inspections. 
Sec. 2010. Entry quality standards for all farmer-owned reserve grains. 
Sec. 2011. Price support loan incentives for quality grain. 
Sec. 2012. Quality requirements for Ck)mmodity Credit C!orporation-owned grain. 
Sec. 2013. Seed variety information and survey. 
Sec. 2014. Authority to assist farmers and elevator operators. 
Sec. 2015. Sense of Congress concerning tests for purity. 
Sec. 2016. Sense of Coi^ess concerning cooperative enforcement of Federal grain 
purity requirements. 
Sec. 2017. Sense of Congress concerning end-use performance research. 
Sec. 2018. Sense of Congress concerning cooperation in objective testing. 
TITLE XXI—ORGANIC CERTIFICATION 
Sec. 2101. Short title. 
Sec. 2102. Purposes. 
Sec. 2103. Definitions. 
Sec. 2104. National organic production program. 
Sec. 2105. National standards for organic production. 
Sec. 2106. Compliance requirements. 
Sec. 2107. General requirements. 
Sec. 2108. State organic certification program. 
Sec. 2109. Prohibited crop production practices and materials. 
Sec. 2110. Animcd production practices and materials. 
Sec. 2111. Handling. 
Sec. 2112. Additional guidelines. 
Sec. 2113. Other production and handling practices. 
Sec. 2114. Organic plan. 
Sec. 2115. Accreditation program. 
Sec. 2116. Requirements of certifying agents. 
Sec. 2117. Peer review of certifying agents. 
Sec. 2118. National list. 
Sec. 2119. National Oi^anic Standards Board. 
Sec. 2120. Violations of title. 
Sec. 2121. Administrative appeal. 
Sec. 2122. Administration. 
Sec. 2123. Authorization of appropriations. 
TITLE XXII—CROP INSURANCE AND DISASTER ASSISTANCE 
Subtitle A—Crop Insurance 
Sec. 2201. Submission of social security account numbers and employer identifica-
tion numbers. 
Sec. 2202. Penalties for willful provision of false or inaccurate information. 
Sec. 2203. Uniform claims adjustment and reinsurance agreements. 
Sec. 2204. Review of policies, ensuring actuarial soimdness, and information collec-
tion. 
Sec. 2205. ASCS yields and dollar-denominated coverage. 
Sec. 2206. Contracting with private companies. 
Subtitle B—Disaster Assistance 
CHAPTKR 1—1989 CROP CLARIFICATION 
Sec. 2231. Sugarcane disaster assistance. 
Sec. 2232. Valencia oremges. 
CHAPTER 2—OTHER ASSISTANCE 
Sec. 2235. Amendments to the Disaster Assistance Act of 1989. 
Sec. 2236. Sugarcane. 
CHAPTER 3—EMERGENCY CROP Loss ASSISTANCE 
SUBCHAPTER A—ANNUAL CROPS 
Sec. 2241. Payments to program participants for target price conmiodities. 
Sec. 2242. Pajrments to program nonparticipants for target price commodities. 
Sec. 2243. Peanuts, sugar, and tobacco. 
Sec. 2244, Soybeans and nonprogram crops. 
Sec. 2245. Crop quality reduction disaster payments. 
Sec. 2246. Effect of Federal crop insurance pajnnents. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3371 
Sec. 2247. Crop insurance coverage for the 1991 crops. 
Sec. 2248. Crops harvested for forage uses. 
Sec. 2249. Pajmtient limitations. 
Sec. 2250. Substitution of crop insurance prograun yields. 
Sec. 2251. Definitions. 
SUBCHAPTER B—ORCHARDS 
Sec. 2255. Eligibility. 
Sec. 2256. Assistance. 
Sec. 2257. Limitation on assistance. 
Sec. 2258. Definition. 
Sec. 2259. Duplicative pajmients. 
SUBCHAPTER C—FOREST CROPS 
Sec. 2261. Eligibility. 
Sec. 2262. Assistance. 
Sec. 2263. Limitation on assistance. 
Sec. 2264. Definition. 
Sec. 2265. Duplicative pajonents. 
SUBCHAPTER D—ADMINISTRATIVE PROVISIONS 
Sec. 2266. Ineligibility. 
Sec. 2267. Timing and manner of assistance. 
Sec. 2268. Commodity Credit Corporation. 
Sec. 2269. Emergency loans. 
Sec. 2270. Regulations. 
SUBCHAPTER E—APPROPRIATIONS 
Sec. 2271. Authorization of appropriations. 
Sec. 2272. Proration of benefits. 
CHAPTER 4—ASSISTANCE FOR BIG HORN RIVER DRAINAGE SYSTEM 
Sec. 2275. Disaster assistance to producers on the Big Horn River drainage sjrstem 
located on the Wind River Indian Reservation. 
Subtitle C—Miscellaneous Provisions 
Sec. 2281. Emergency grants to assist low-income migrant and seasonal farmwork-
ers. 
TITLE XXra—RURAL DEVELOPMENT 
Sec. 2301. Short title. 
Subtitle A—Reorganization of the Department of Agriculture 
Sec. 2302. Rural Development Administration. 
Sec. 2303. Conforming amendments. 
Subtitle B—Coordination of Rural Development Efforts 
CHAPTER 1—GENERAL PROVISIONS 
Sec. 2310. General provisions. 
CHAPTER 2—RURAL INVESTMENT PARTNERSHIPS 
Sec. 2311. Definitions. 
Sec. 2312. Rural Partnerships Investment Board. 
Sec. 2313. Elstablishment of Investment Fund. 
Sec. 2314. Local revolving funds. 
Sec. 2315. Compliance and enforcement. 
CHAPTER 3—RURAL ECONOMIC DEVELOPMENT REVIEW PANELS 
Sec. 2316. Delivery of certain rural development programs. 
Sec. 2317. Loan and loan guarantee allocation and transfer. 
Subtitle C—Water and Waste Facilities 
Sec. 2321. Increase on limitation of authorization for water and waste grants. 
Sec. 2322. Water and waste facility financing. 
Sec. 2323. Water and waste lendii^? by banks for cooperatives. 
Sec. 2324. Rural Wastewater Treatment Circuit Rider Program. 
Sec. 2325. Technical assistance for certain solid waste management. 
Sec. 2326. Emergency community water assistance grant program. 
104 STAT. 3372 
PUBLIC LAW 101-624—NOV. 28, 1990 
Sec. 2327. Water and waste facility loans and grants to alleviate health risks. 
Sec. 2328. Water or waste disposfil loans to benefit rural businesses. 
Sec. 2329. Limitation on conditions for water and sewer grants and loans. 
Subtitle D—Enhancing Human Resources 
CHAPTER 1—DISTANCE LEARNING AND MEDICAL LINK PROGRAMS 
Sec. 2331. Purpose. 
Sec. 2332. Goal. 
Sec. 2333. Definitions. 
Sec. 2334. Provisions relevant to telecommunications programs. 
Sec. 2335. Rural community access to advanced telecommunications. 
CHAPTER 2—RURAL BUSINESS DEVELOPMENT 
Sec. 2336. Purposes. 
Sec. 2337. Loans for business telecommunications partnerships. 
Subtitle E—Rural Business and Emergency Assistance 
Sec. 2341. Local technical assistance grants. 
Sec. 2342. Rural emergency assistance loans. 
Sec. 2343. REA technical assistance unit. 
Sec. 2344. Deferment of payment on economic development loans. 
Sec. 2345. Rural economic development. 
Sec. 2346. Extension Service. 
Sec. 2347. Rural technology grants. 
Sec. 2348. Demonstration projects. 
Sec. 2349. Rural development research assistance. 
Sec. 2350. Assistant Administrator for Economic Development. 
Subtitle F—Rural Electrification Provisions 
Sec. 2351. Short title; amendment of Rural Electrification Act of 1936. 
Sec. 2352. Findings; statement of policy. 
CHAPTER 1—AMENDMENT TO TITLE I OP THE RURAL ELECTRIFICATION ACT OF 1936 
Sec. 2353. Greneral prohibitions. 
CHAPTER 2—AMENDMENTS RELATING TO TITLE II OF THE RURAL ELECTRIFICATION ACT 
O
F 1936 
Sec. 2354. Updated definition of telephone service. 
Sec. 2355. Loan feasibility. 
Sec. 2356. Encouragement of investment by telephone borrowers in rural develop-
ment projects. 
Sec. 2357. Improvements in telephone program. 
Sec. 2358. Prompt processing of telephone loans. 
CHAPTER 3—AMENDMENTS RELATING TO TITLE III OF THE RURAL ELECTRIFICATION 
ACT OF 1936 
Sec. 2359. Creation of separate electric and telephone accounts within rural electric 
and telephone revolving fund. 
Sec. 2360. Borrowers to determine amortization period for insured telephone loans. 
Sec. 2361. Tier requirement for insured telephone loans. 
Sec. 2362. Clarification of telephone loan guarantee authority. 
CHAPTER 4—AMENDMENTS RELATING TO TrrLE IV OF THE RURAL ELECTRIFICATION 
ACT OF 1936 
Sec. 2363. Modification of Rural Telephone Bank Board. 
Sec. 2364. Pro rata purchase of rural telephone bank stock by rural telephone bank 
borrowers. 
Sec. 2365. Clarification of authority to set rural telephone bank loan levels. 
Sec. 2366. Borrowers to determine amortization period for rural telephone bank 
loans. 
Sec. 2367. Technical amendments relating to the rural telephone bank provisions of 
the Omnibus Budget Reconciliation Act of 1987. 
CHAPTER 5—EFFECTIVE DATE 
Sec. 2368. Effective date. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3373 
Subtitle G—Rural Revitalization Through Forestry 
CHAPTEB 1—FoRBSTRY RURAL REVTTALIZATIOK 
Sec. 2371. Forestry rural revitalization. 
CHAPTER 2—NATIONAL FORBBT-DEPBNDBNT RURAL Ck>MMUNrnE8 
Sec. 2372. Short title. 
Sec. 2373. Findings and purposes. 
Sec. 2374. Definitions. 
Sec. 2375. Rural forestry and economic diversification action teams. 
Sec. 2376. Action plan implementation. 
Sec. 2377. Training and education. 
Sec. 2378. Loans to economically disadvantaged rural communities. 
Sec. 2379. Authorization of appropriations and spending authority. 
Subtitle H—Miscellaneous Provisions 
Sec. 2381. National Rural Information Center Clearinghouse. 
Sec. 2382. Monitoring the economic progress of rural America. 
Sec. 2383. Loan rates applicable to certain loans under the Consolidated Farm and 
Rural Development Act. 
Sec. 2384. Assistance for certain distressed community facility program borrowers. 
Sec. 2385. Analysis by Office of Technology Assessment. 
Sec. 2386. Grants to broadcasting sjrstems. 
Sec. 2387. Merger of certain rural electric cooperatives. 
Sec. 2388. Technical corrections. 
Sec. 2389. Grants for financially stressed farmers, dislocated farmers, and rural 
families. 
Sec. 2390. Rural health and safety education. 
Sec. 2391. Rural health infrastructure improvement. 
Sec. 2392. Census of agriculture. 
Sec. 2393. Limitation on conditions for water and sewer grants and loans. 
Sec. 2394. Encouragement of private contracting. 
Sec. 2395. Preservation of eligibility. 
Sec. 2396. R^ulations. 
TITLE XXIV—GLOBAL CLIMATE CHANGE 
Sec. 2401. Short title. 
Sec. 2402. Global climate clumge prt^ram. 
Sec. 2403. Study of global climate change, agriculture, and forestry. 
Sec. 2404. Teclmical advisory committee. 
Sec. 2405. Office of International Forestry. 
Sec. 2406. Line item. 
Sec. 2407. Institutes of Tropical Forestry. 
Sec. 2408. The Forest and Rangeland Renewable Resources Planning Act of 1974. 
Sec. 2409. Urban forestry demonstration projects. 
Sec. 2410. Biomass energy demonstration projects. 
Sec. 2411. Interagency cooperation to maximize biomass growth. 
Sec. 2412. Authorization of appropriations. 
TITLE XXV—OTHER RELATED PROVISIONS 
Sec. 2501. Outreach and assistance for socially disadvantaged farmers and ranch-
ers. 
Sec. 2502. Niirrowing the defense exception to the Farmland Protection Policy Act. 
Sec. 2503. Protection of pets. 
Sec. 2504. Control and eradication of plant pests. 
Sec. 2505. Cooperation in animal disease control. 
Sec. 2506. Pseudorabies eradication. 
Sec. 2507. R^ulation governing inspection of imported poultry. 
Sec. 2508. Additional inspection services. 
Sec. 2509. Collection of fees for inspection services. 
Sec. 2510. User fees for reports, publications, and software. 
Sec. 2511. Tobacco Adjustment Act of 1983. 
Sec. 2512. Costs of production. 
Sec. 2513. Farm value of agricultural products. 
Sec. 2514. Commodity reports. 
Sec. 2515. Scarce Federal resources. 
Sec. 2516. Recordkeeping improvement. 
Sec. 2517. Study of the transportation of fertilizer and agricultural chemicals to 
farmers. 
104 STAT. 3374 
PUBLIC LAW 101-624—NOV. 28, 1990 
Sec. 2518. Establishing qusdity as a gocd for Commodity Credit Corporation pro-
grams. 
Sec. 2519. Severability. 
TITLE I—DAIRY 
SEC. 101. MILK PRICE SUPPORT AND MILK INVENTORY MANAGEMENT 
PROGRAM FOR CALENDAR YEARS 1991 THROUGH 1995. 
Effective date. 
(a) IN GENERAL.—Effective January 1, 1991, the Agricultural Act 
of 1949 is amended by inserting after section 203 (7 U.S.C. 1446d) the 
following new section: 
7 use 1446e. 
"SEC. 204. MILK PRICE SUPPORT AND MILK INVENTORY MANAGEMENT 
PROGRAM FOR CALENDAR YEARS 1991 THROUGH 1995. 
"Notwithstanding any other provision of law: 
"(a) IN GENERAL.—During the period beginning on January 1, 
1991, and ending on December 31, 1995, the price of milk shall be 
supported as provided in this section. 
"0)) RATE.—During the period beginning on January 1, 1991, and 
ending on December 31,1995, the price of milk shall be supported at 
a rate not less than $10.10 per hundredweight for milk containing 
3.67 percent milkfat. 
"(c) PURCHASES.— 
"(1) IN GENERAL.—The price of milk shall be supported 
through the purchase of milk and the products of milk. 
"(2) C(X BID PRICES.—The Commodity Credit Corporation sup-
port purchase prices under this section for each of the products 
of milk 0)utter, cheese, and nonfat dry milk) announced by the 
Corporation shall be the same for all of that product sold by 
persons offering to sell the product to the Corporation. The 
purchase prices shall be sufficient to enable plants of average 
efficiency to pay producers, on average, a price not less than the 
rate of price support for milk in effect during a 12-month period 
under this subsection. 
"(3) BUTTER AND NONFAT DRY MILK.— 
"(A) ALLOCATION OF PURCHASE PRICES.—The Secretary 
may allocate the rate of price support between the purchase 
prices for nonfat dry milk and butter in a manner that will 
result in the lowest level of expenditures by the Commodity 
Credit Corporation or achieve such other objectives as the 
Secretary considers appropriate. The Secretary shall notify 
the Committee on Agriculture of the House of Representa-
tives and the Committee on Agriculture, Nutrition, and 
Forestry of the Senate of the allocation. 
"(B) TIMING OF PURCHASE PRICE ADJUSTMENTS.—The Sec-
retary may make any such adjustments in the purchase 
prices for nonfat dry milk and butter the Secretary consid-
ers to be necessary not more than twice in each calendar 
year. 
"(d) SUPPORT RATE ADJUSTMENTS.— 
"(1) REDUCTIONS.— 
"(A) IN GENERAL.—Effective January 1 of each of the 
calendar years 1991 through 1995, if the level of purchases 
of milk and the products of milk by the Commodity Credit 
Corporation under this section (less sales under section 407 
for unrestricted use), as estimated by the Secretary by 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3375 
November 20 of the preceding calendar year, will exceed 5 
billion pounds (milk equivalent, total milk solids basis), the 
Secretary shall decrease by an amount per hundredweight 
of at least $0.25 but not more than $0.50 the rate of price 
support for milk in effect for the calendar year. 
(B) 
PRIOR NOTIFICATION.—The Secretary shall, 
by 
November 20 of the preceding calendar year, notify the 
Committee on Agriculture of the House of Representatives 
and the Committee on Agriculture, Nutrition, and Forestry 
of the Senate of any proposed decrease in price support 
under this paragraph. 
"(2) INCREASES.— 
"(A) IN GENERAL.—Effective January 1 of each of the 
calendar years 1991 through 1995, if the level of purchases 
of milk and the products of milk by the Commodity Credit 
Corporation under this section (less sales under section 407 
for unrestricted use), as estimated by the Secretary by 
November 20 of the preceding calendar year, will not 
exceed 3.5 billion pounds (milk equivalent, total milk solids 
basis), the Secretary shall increase by an amount per 
hundredweight of at least $0.25 the rate of price support for 
milk in effect for the calendar year. 
"(B) 
PRIOR NOTIFICATION.—The Secretary shall, 
by 
November 20 of the preceding calendar year, notify the 
Committee on Agriculture of the House of Representatives 
and the Committee on Agriculture, Nutrition, and Forestry 
of the Senate of any proposed increase in price support 
imder this paragraph. 
"(3) No ADJUSTMENTS.—If for any of the calendar years 1992 
through 1995, the level of purchases of milk and the products of 
milk by the Commodity Credit Corporation under this section 
(less sales under section 407 for unrestricted use), as estimated 
by the Secretary by November 20 of the preceding calendar 
year, will be less than 5 billion pounds (milk equivalent, total 
milk solids basis), but more than 3.5 billion pounds (milk equiva-
lent, total milk solids basis), the Secretary shall not decrease the 
rate of price support for milk in effect for the calendar year. 
"(4) 1V£[NIMUM PRICE.—Notwithstanding any other provision of 
this section, in no event shsdl the price of milk be supported at 
less than $10.10 per hundredweight. 
"(5) ADMINISTRATION.— 
"(A) MILK EQUIVALENT, TOTAL MILK SOUDS BASIS.—As used 
in this section, the term 'milk equivalent, total milk solids 
basis', of milk and the products of milk purchased by the 
Commodity Credit Corporation, shall be equal to the 
weighted-average of the milk equivalent (as computed on a 
milkfat basis and on a milk solids nonfat basis) of such 
products, with weighting factors equal to not more than 40 
percent for the milk equivalent, milkfat basis, and not more 
than 70 percent for the milk equivalent, solids nonfat basis. 
The weighting factors shall total 100 percent. 
"(B) LEVEL OF PURCHASES.—In estimating the level of 
purchases of milk and the products of milk under this 
section, the Secretary shall deduct the amount, if any, by 
which the level of imports into the United States of milk 
and the products of milk during the most recent calendar 
year exceeds the annual average level of imports into the 
104 STAT. 3376 
PUBLIC LAW 101-624—NOV. 28, 1990 
United States of milk gind the products of milk during the 
period January 1, 1986, through December 31, 1990 (milk 
equivalent, total milk solids basis). 
"(e) REPORT ON MILK INVENTORY MANAGEMENT PROGRAM.— 
"(1) IN GENERAL.—Not later than August 1, 1991, the Sec-
retary shall prepare and submit a report and recommendations 
on various milk inventory management progrsuns to the 
Clommittee on Agriculture of the House of Representatives and 
Committee on Agriculture, Nutrition, and Forestry of the 
Senate. 
^®^®'?^ 
"(2) SouciTATiON OF PROPOSALS.—Within 60 days after the 
publication 
^ ^ ^ °^ enactment of this section, the Secretary shall publish in 
the Federal Register a notice to solicit proposals concerning a 
milk inventory mansigement program. 
"(3) REQUIRED PROPOSALS.—In carrying out this subsection, 
the Secretary sheill study, among other proposals— 
"(A) an alternative classification of milk contained in 
section 8c(5) of the Agricultural Adjustment Act (7 U.S.C. 
608c(5)), as amended by the Agricultursil Marketing Agree-
ment Act of 1937; 
"(B) a program to support the income of milk producers 
through a system of established prices and deficiency pay-
ments; £md 
"(C) other such programs submitted to the Secretary 
under paragraph (2) as the Secretary may determine appro-
priate after consultation with the Clommittee on Agri-
culture of the House of Representatives and the (Dommittee 
on Agriculture, Nutrition, and Forestry of the Senate. 
"(4) PROHIBITED PROGRAMS.—In the study required under 
paragraph (3), the Secretary shall not consider any milk inven-
tory management program that includes any milk production 
termination program that is similar to the program established 
under section 201(dX3), or support price reductions below the 
levels established under this section. 
"(5) CRITERIA FOR EVALUATION.—The Secretary shall evaluate 
the proposals for a milk inventory msmagement program based 
on— 
"(A) the ability of the program to limit Government 
purchases of milk products to 6,000,000,000 pounds (milk 
equivalent, total milk solids basis) in a calendar year; 
"(B) the speed and effectiveness of reducing excess milk 
production; 
"(C) the effectiveness in sustaining reduced milk produc-
tion for at least a 5-year period with and without the 
continuation of the program; 
"(D) the regional impact on milk prices, producer reve-
nue, and milk supplies; 
"(E) the impact on national producer income and Govern-
ment expenditures; 
"(F) the impact on the rural economy and maintaining 
family farms; 
"(G) the impact on the availability of wholesome dairy 
products for domestic and foreign nutrition and food assist-
ance programs; 
"(H) technological innovations; 
"(I) the effectiveness in reducing butter fat production 
and increasing protein content in milk; 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3377 
"(J) the impact of temporary increases and decreases of 
milk production; 
"(K) the impact on the United States livestock industry; 
and 
"(L) all other issues the Secretary considers appropriate. 
"(6) NOTICE AND COMMENT.—The Secretary shall provide for 
public notice and comment on the milk inventory programs 
studied by the Secretary under this subsection no later than 
June 1,1991. 
"(f) 
NOTIFICATION OF CONGRESS CONCERNING ESTIMATED PUR-
CHASES.—On August 1 £ind by November 20 of each of the calendar 
years 1991 through 1995, the Secretary shall notify the Committee 
on Agriculture of the House of Representatives and the Committee 
on Agriculture, Nutrition, and Forestry of the Senate regarding the 
value and volume of dairy product purchases on a milk equivalent, 
total milk solids basis, the Secretary estimates that the Corporation 
will make during the upcoming calendar year. 
"(g) EXCESS PURCHASES.— 
"(1) IN GENERAL.—In order to offset any cost to the Commod-
ity Credit Corporation associated with the purchase of milk and 
the products of milk in excess of 7,000,000,000 pounds (milk 
equivalent, total milk solids basis), during any of the calendar 
years 1991 through 1994, the Secretary shall, if necessary, 
provide for a reduction to be made in the price received by 
producers for all milk produced in the United States and mar-
keted by producers for commercial use. 
"(2) CALCULATION.—If on November 20 of each of the calendar 
years 1991 through 1994, the Secretary estimates that the level 
of Commodity (Dredit Corporation purchases of milk and the 
products of milk will exceed 7,000,000,000 pounds (milk equiva-
lent, total milk solids basis), the amount of reduction in the 
price received by producers shall be an amount per hundred-
weight calculated by dividing— 
"(A) the cost of the purchases in excess of 7,000,000,000 
pounds, milk equivalent, total milk solids basis; by 
"(B) the total quantity of hundredweights of milk the 
Secretary estimates will be produced and marketed in the 
United States for commercial use in that calendar year. 
"(3) ADJUSTMENTS.—The Secretary shall adjust any such 
assessment in future years, or refund any portion of such 
assessments, as needed, to carry out the purposes of this subsec-
tion. 
"(h) USE OF COMMODITY (CREDIT CORPORATION.—The Secretary 
shall use the funds, facilities, and authorities of the Commodity 
Credit Corporation to carry out this section. 
"(i) PERIOD.—Notwithstanding any other provision of law, this 
section shall be effective only during the period beginning on Janu-
ary 1,1991, and ending on December 31,1995.". 
(b) CONFORMING PROVISION.—Section 553 of title 5, United States l^^ i446e 
Code, shall not apply with respect to the implementation of section 
204 of the Agricultural Act of 1949 (as added by subsection (a) of this 
section) by the Secretary of Agriculture, including determinations 
made r^arding— 
(1) the level of price support for milk; and 
(2) any reduction in the prices paid to producers of milk. 
note. 
104 STAT. 3378 
'PUBLIC LAW 101-624—NOV. 28, 1990 
7 u s e 1446e-l. 
SEC. 102. MILK MANUFACTURING MARKETING ADJUSTMENT. 
(a) IN GENERAL.—Effective beginning on the date that is 12 
months after the date of enactment of this Act, no State shall 
provide for (and no person shall collect, directly or indirectly) a 
greater allowance for the processing of milk (hereafter referred to as 
a "make allowance") than is permitted under a Federal program to 
establish a Grade A price for manufacturing butter, nonfat dry 
milk, or cheese. 
(b) LIABILITY FOR PENALTIES.— 
(1) IN GENERAL.—If the Secretary of Agriculture determines 
that— 
(A) based on a request by a producer supported by evi-
dence, the make allowance collected by a person is in excess 
of the amount that is permitted under subsection (a); or 
(B) a person has failed to comply with any requirement of 
this section or a regulation issued under this section, 
the person shall be liable for penalties as determined by the 
Commodity Credit Corporation in accordance with this subsec-
tion. 
(2) AMOUNT OF PENALTIES.—Such penalties shall be equal to 
the product obtained by multipl5dng— 
(A) twice the permitted make allowance that could be 
charged as provided under subsection (a); by 
(B) the quantity of milk with respect to which the person 
was determined by the Secretary to have collected a make 
* 
allowance in excess of the permitted make allowsince. 
(c) REGULATIONS.—The Secretary may issue such regulations as 
are necessary to carry out this section. 
(d) INVESTIGATIONS.— 
(1) IN GENERAL.—The Secretary may make such investiga-
tions as the Secretary considers necessary for the effective 
administration of this section or to determine whether any 
person subject to this section has violated this section. 
(2) ADMINISTRATION.—For the purpose of the investigation, 
the Secretary may administer oaths and affirmations, subpoena 
witnesses, compel their attendance, take evidence, and require 
the production of any records that are relevant to the inquiry. 
(3) SUBPOENA.—The attendance of witnesses and the produc-
tion of any such records may be required from any place in the 
United States. In case of contumacy by, or refusal to obey a 
subpoena to, any person, the Secretary may invoke the aid of 
any court of the United States within the jurisdiction of which 
the investigation or proceeding is carried on, or where the 
person resides or carries on business, in requiring the attend-
ance and testimony of witnesses and the production of records. 
The court may issue an order requiring the attendance and 
testimony of witnesses and the production of records, or requir-
ing the person to appear before the Secretary to produce records 
or to give testimony on the matter under investigation. 
(4) CONTEMPT.—Any failure to obey the order of the court may 
be punished by the court as a contempt thereof. 
(5) PROCESS.—All process in any such case may be served in 
the judicial district of which the person is an inhabitant or 
wherever the person may be found. 
Courts. 
(e) ENFORCEMENT.—The district courts of the United States are 
vested with jurisdiction specifically to enforce, and to prevent and 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3379 
Public 
information. 
restrain any person from violating, any provision of this section or 
any regulation issued under this section. 
SEC. 103. MINNESOTA-WISCONSIN PRICE SERIES REFORM. 
7 USC 608c note. 
(a) IN GENERAL.—Within 60 days of the date of enactment of this 
Act, the Secretary of Agriculture shall commence to accept alter-
native pricing formula recommendations, as they may relate to the 
Minnesota-Wisconsin price series used to determine the minimum 
prices paid under milk marketing orders, in order to amend such 
milk marketing orders authorized under section 8c of the Agricul-
tural Adjustment Act (7 U.S.C. 608c), reenacted with amendments 
by the Agricultural Marketing Agreement Act of 1937. Among the 
alternative pricing formulas to be considered by the Secretary shall 
be a price series based on prices paid by milk processors for Grade A 
milk and manufacturing grade milk that is used in the manufacture 
of dairy products. 
(b) AVAILABILITY OF DATA.—The Secretary shall compile and make 
available to the public the historical and current data used to 
compare the alternative pricing formulas submitted and rec-
ommended as provided in subsection (a) with the existing Min-
nesota-Wisconsin price series. 
(c) IMPLEMENTATION IN FEDERAL MARKETING ORDERS.— 
(1) ANNOUNCEMENT OF HEARING.—Not later than October 1, 
1991, the Secretary shall— 
(A) announce a national hearing to consider the proposed 
replacement of the Minnesota-Wisconsin price series in 
Federal milk marketing orders; and 
(B) invite industry and consumer proposals on the specific 
provisions to be considered for each order. 
(2) REPORT TO CONGRESS.—On issuance of the final decision on 
the hearing proposals, the Secretary shall report the decision to 
the Committee on Agriculture of the House of Representatives 
and the Committee on Agriculture, Nutrition, and Forestry of 
the Senate. 
(3) OPPORTUNITY FOR PUBUC COMMENT.—The opportunity for 
public comment on the recommended decision shall not be less 
than 30 legislative days. For purposes of this paragraph, the 
term "legislative day" means a day on which either House of 
Congress is in session. 
SEC. 104. HEARINGS ON FEDERAL MILK MARKETING ORDERS. 
7 USC 608c note. 
The Secretary of Agriculture shall— 
(1) conclude the national hearings announced by the Sec-
retary on March 29, 1990, regarding possible changes in the 
pricing provisions of Federal milk marketing orders; and 
(2) to the maximum extent practicable consistent with ap-
plicable laws, effect any resulting system-wide changes in the 
Federal orders setting minimum prices that milk processors 
must pay for Grade A imlk received from producers, by January 
1,1992. 
SEC. 105. REPORT OF DAIRY PRODUCT PURCHASES. 
7 USC 1446c 
The Secretary of Agriculture shall make available to the public Public 
quarterly evaluations of the acquisition and disposal of Commodity 
information. 
Credit Corporation purchases of dairy products. 
104 STAT. 3380 
PUBLIC LAW 101-624—NOV. 28, 1990 
7 u s e 1446e 
SEC. 106. APPLICATION OF SUPPORT PRICE FOR MILK. 
For purposes of supporting the price of milk under section 204 of 
the Agricultural Act of 1949 (as added by section 101 of this Act), the 
Secretary of Agriculture may not take into consideration any 
market value of whey. 
7 u s e 1446 
SEC. 107. APPLICATION OF AMENDMENTS. 
The amendments made by this title shall not affect any liability of 
any person under section 201 of the Agricultural Act of 1949 (7 
U.S.C. 1446) as in effect before the date of the enactment of this Act. 
SEC. 108. ADJUSTMENTS FOR SEASONAL PRODUCTION; HEARINGS ON 
AMENDMENTS; DETERMINATION OF MILK PRICES. 
Section 101(b) of the Agriculture and Food Act of 1981 (7 U.S.C. 
608c note) is amended by striking "1990" and inserting "1995". 
SEC. 109. TRANSFER OF DAIRY PRODUCTS TO THE MILITARY AND VETER-
ANS HOSPITALS. 
Section 202 of the Agricultural Act of 1949 (7 U.S.C. 1446a) is 
amended by striking "1990" each place it appears in subsections (a) 
and (b) and inserting "1995". 
SEC. 110. EXTENSION OF THE DAIRY INDEMNITY PROGRAM. 
Section 3 of the Act entitled "An Act to provide indemnity 
7 use mi. 
payments to dairy farmers" (7 U.S.C. 4501), approved August 13, 
1968, is amended by striking "1990" and inserting "1995". 
SEC. 
1
1
1
. 
EXPORT 
SALES 
OF 
DAIRY 
PRODUCTS. 
Section 1163 of the Food Security Act of 1985 (7 U.S.C. 1731 note) 
is amended by striking "1990" each place it appears and inserting 
"1995". 
SEC. 112. COMPONENT PRICING OF MILK. 
Section 8c(5XB) of the Agricultured Adjustment Act (7 U.S.C. 
608c(5XB)), reenacted with amendments by the Agricultural Market-
ing Agreement Act of 1937, is amended— 
(1) by striking "and" at the end of clause (d); and 
(2) by inserting before the period at the end the following: 
"and, (f) a further adjustment, equitably to apportion the total 
value of milk purchased by £iny handler or by all handlers 
among producers on the basis of the milk components contained 
in their marketings of milk". 
SEC. 113. ADJUSTMENTS IN PAYMENTS BY HANDLERS. 
Section 8c(5) of the Agricultural Adjustment Act (7 U.S.C. 608c(5)), 
reenacted with amendments by the Agricultural Marketing Agree-
ment Act of 1937, is amended by adding at the end the following: 
"(L) Providing that adjustments in pajnments by handlers under 
paragraph (A) need not be the same as adjustments to producers 
under paragraph (B) with regard to adjustments authorized by 
subparagraphs (2) and (3) of paragraph (A) and clauses (b), (c), and (d) 
of paragraph (BXii).". 
SEC. 114. DAIRY EXPORT INCENTIVE PROGRAM. 
Section 153 of the Food Security Act of 1985 (15 U.S.C. 713a-14) is 
amended 
by 
striking 
"September 
30, 1990" and 
inserting 
"December 31,1995". 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3381 
SEC. 115. STATUS OF PRODUCER HANDLERS. 
7 USC 608c note. 
The legal status of producer handlers of milk under the Agricul-
tural Adjustment Act (7 U.S.C. 601 et seq.), reenacted with amend-
ments by the Agricultural Marketing Agreement Act of 1937, shall 
be the same after the amendments made by this title take effect as 
it was before the effective date of the amendments. 
SEC. 116. MULTIPLE COMPONENT PRICING STUDY. 
7 USC 608c note. 
(a) IN GENERAL.—Not later than 60 days after the date of enact-
ment of this Act, the Secretary of Agriculture shall initiate a study 
to determine whether, and to what extent, milkfat is being produced 
in the United States in excess of commercisd market needs as a 
result of any provision of law, regulation, or order that affects the 
manner in which producers receive payment for milk on the basis of 
the milk components contained in their marketings of milk under 
any Federal or State milk pricing program. 
(b) STUDY.—In conducting the study, the Secretary shall assess the 
potential impact on achieving balance in the production, marketing, 
and domestic commercial use of milkfat through adoption of mul-
tiple component pricing programs under Federal and State milk 
pricing programs. 
(c) REPORT,—Not later that 180 days after the date of enactment of 
this Act, the Secretary shall— 
(1) report the results of the study conducted under subsection 
(a), together with associated recommendations, to the Commit-
tee on Agriculture of the House of Representatives and the 
Committee on Agriculture, Nutrition, and Forestry of the 
Senate; and 
(2) publish the results of the study. 
(d) IMPLEMENTATION IN FEDERAL MARKETING ORDERS.—On comple-
tion and publication of the study described in this section, the 
Secretary shall— 
(1) announce a national hearing to consider the adoption of 
multiple component pricing provisions in individual Federal 
milk marketing orders issued under section 8c of the Agricul-
tural Adjustment Act (7 U.S.C. 608c), reenacted with amend-
ments by the Agricultural Marketing Agreement Act of 1937; 
and 
(2) invite industry and consumer proposals on the specific 
provisions to be considered for each order. 
TITLE II—WOOL AND MOHAIR 
SEC. 201. WOOL AND MOHAIR PRICE SUPPORT PROGRAM. 
(a) EXTENSION.—Section 703 of the National Wool Act of 1954 (7 
U.S.C. 1782) is amended by striking "1990" each place it appears in 
subsections (a) and (b) and inserting "1995". 
(b) PAYMENT LIMITATION.—Section 704 of such Act (7 U.S.C. 1783) 
is amended— 
(1) by striking the section heading and inserting the following: 
"SEC. 704. PAYMENTS AS MEANS OF PRICE SUPPORT."; 
(2) by inserting after the section designation the following: 
"(a) USE OF PAYMENTS.—; and 
(3) by adding at the end the following new subsection: 
"(b) PAYMENT LIMITATION.— 
104 STAT. 3382 
PUBLIC LAW 101-624—NOV. 28, 1990 
"(1) IN GENERAL.—The total simount of payments that a 
person shall be entitled to receive under this Act for wool or 
mohair for any marketing year shall not exceed— 
"(A) $200,000 for the 1991 marketing year; 
"(B) $175,000 for the 1992 marketing year; 
"(C) $150,000 for the 1998 marketing year; and 
"(D) $125,000 for each of the 1994 and subsequent market-
ing years. 
Regulations. 
"(2) ENFORCEMENT.—The Secretary sheill issue regulations 
defining the term 'person' for purposes of this section. The 
regulations shall be consistent with regulations issued by the 
Secretary in accordance with sections 1001, lOOlA, and lOOlB of 
the Food Security Act of 1985 (7 U.S.C. 1808, 1808-1, and 
1308-2).". 
TITLE III—WHEAT 
SEC. 301. LOANS, PAYMENTS, AND ACREAGE REDUCTION PROGRAMS FOR 
THE 1991 THROUGH 1995 CROPS OF WHEAT. 
The Agricultural Act of 1949 is amended— 
(1) by repealing sections 107A and 107B (7 U.S.C. 1445b and 
1445b-l); 
(2) by redesignating section 107D (7 U.S.C. 1445b-3) as section 
107 
A; and 
(3) by inserting after section 107A (as so redesignated) the 
following new section: 
7 use 1445b-3a. "SEC. 107B. LOANS, PAYMENTS, AND ACREAGE REDUCTION PROGRAMS 
FOR THE 1991 THROUGH 1995 CROPS OF WHEAT. 
"(a) LOANS AND PURCHASES.— 
"(1) IN GENERAL.—Except as otherwise provided in this 
subsection, the Secretary shall make available to producers on a 
farm loans and purchases for each of the 1991 through 1995 
crops of wheat produced on the farm at such level as the 
Secretary determines will maintain the competitive relation-
ship of wheat to other grains in domestic and export markets 
after taking into consideration the cost of producing wheat, 
supply and demand conditions, and world prices for wheat. 
(2) MINIMUM LOAN AND PURCHASE LEVEL.—Except as pro-
vided in paragraphs (8) and (4), the loan and purchase level 
determined under paragraph (1) shall not be less than 85 per-
cent of the simple average price received by producers of wheat, 
as determined by the Secretary, during the marketing years for 
the immediately preceding 5 crops of wheat, excluding the year 
in which the average price was the highest and the year in 
which the average price was the lowest in such period, except 
that the loan and purchase level for a crop determined under 
this paragraph may not be reduced by more than 5 percent from 
the level determined for the preceding crop. 
"(8) ADJUSTMENTS TO SUPPORT LEVEL.— 
"(A) STOCKS TO USE RATIO.—If the Secretary estimates for 
any marketing year that the ratio of ending stocks of wheat 
to total use for the marketing year will be— 
"(i) equal to or greater than 30 percent, the Secretary 
may reduce the loan and purchase level for wheat for 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3383 
the corresponding crop by an amount not to exceed 10 
percent in any year; 
"(ii) less than 30 percent but not less than 15 percent, 
the Secretary may reduce the loan and purchase level 
for wheat for the corresponding crop by an amount not 
to exceed 5 percent in any year; or 
"(iii) less than 15 percent, the Secretary may not 
reduce the loan and purchase level for wheat for the 
corresponding crop. 
"(B) REPORT TO CONGRESS.— 
"(i) IN GENERAL.—If the Secretary adjusts the level of 
loans and purchases for wheat under subparagraph (A), 
the Secretary shall submit to the Committee on Agri-
culture of the House of Representatives and the 
Committee on Agriculture, Nutrition, and Forestry of 
the Senate a report— 
"(I) certifying such adjustment as necessary to 
prevent the accumulation of stocks and to retain 
market share; and 
"(JD containing a description of the need for such 
adjustment. 
"(ii) EFFECTIVE DATE OF ADJUSTMENT.—The adjust-
ment shall become effective no earlier than 60 calendar 
days after the date of submission of the report to the 
Committees, except that in the case of the 1991 crop of 
wheat, the adjustment shall become effective on the 
date of the submission of the report. 
"(C) CoMPETmvE POSITION.—Notwithstanding subpara-
graph (A), if the Secretary determines, not later thMi 60 
days prior to the beginning of a marketing year for a crop, 
that the effective loan rate established for such crop will 
not maintain a competitive market position for wheat, the 
Secretary may reduce the loan and purchase level for 
wheat for the marketing year by an amount, in addition to 
any reduction under subparagraph (A), not to exceed 10 
percent in any year. 
"(D) No E
F
F
E
C
T ON FUTURE YEARS.—Any reduction in the 
loan £uid purchase level for wheat imder this paragraph 
shall not be considered in determining the loan and pur-
chase level for wheat for subsequent years. 
"(E) MINIMUM LOAN RATE.—Notwithstanding subpara-
f
raph (A), the loan rate for wheat shall not be less than 
2.44 per bushel, unless such rate would exceed 80 percent 
of the 5-year average market price determination. 
"(4) MARKETING LOAN PROVISIONS.— 
"(A) IN GENERAL.—The Secretary may permit a producer 
to repay a loan made under this subsection for a crop at a 
level (except as provided in subparagraph (C)) that is the 
lesser of— 
"(i) the loan level determined for the crop; 
"(ii) the higher of— 
"(I) 70 percent of such level; 
"(II) if the loan level for a crop was reduced 
under paragraph (3), 70 percent of the loan level 
that would have been in effect but for the reduc-
tion under paragraph (3); or 
104 STAT. 3384 
PUBLIC LAW 101-624—NOV. 28, 1990 
"(iii) the preveiiling world market price for wheat 
(adjusted to United States quality and location), as 
determined by the Secretary. 
Regulations. 
"(B) PREVAILING WORLD MARKET PRICE.—If the Secretary 
permits a producer to repay a loan in accordance with 
subparagraph (A), the Secretary shall prescribe by regula-
tion— 
"(i) a formula to determine the prevailing world 
market price for wheat, adjusted to United States qual-
ity and location; and 
"(ii) a mechanism by which the Secretary shall an-
nounce periodically the prevailing world market price 
for wheat. 
"(C) ALTERNATIVE REPAYMENT RATES.—For each of the 
1991 through 1995 crops of wheat, if the world market price 
for wheat (adjusted to United States quality and location) as 
determined by the Secretary, is less than the loan level 
determined for the crop, the Secretary may permit a pro-
ducer to repay a loan made under this subsection for a crop 
at such level (not in excess of the loan level determined for 
the crop) as the Secretary determines will— 
"(i) minimize potential loan forfeitures; 
"(ii) minimize the accumulation of wheat stocks by 
the Federgd Government; 
"(iii) minimize the cost incurred by the Federal 
Government in storing wheat; and 
"(iv) allow wheat produced in the United States to be 
marketed freely and competitively, both domestically 
and internationally. 
"(5) SIMPLE AVERAGE PRICE.—For purposes of this section, the 
simple average price received by producers for the immediately 
preceding marketing year shall be based on the latest informa-
tion available to the Secretary at the time of the determination. 
"(b) LOAN DEFICIENCY PAYMENTS.— 
"(1) IN GENERAL.—The Secretary may, for each of the 1991 
through 1995 crops of wheat, make pajonents (hereafter in this 
section referred to as 'loan deficiency payments') available to 
producers who, although eligible to obtain a loan or purchase 
agreement under subsection (a), agree to forgo obtaining the 
loan or agreement in return for pajmients under this subsection. 
"(2) COMPUTATION.—A pajonent under this subsection shall be 
computed by multiplying— 
"(A) the loan pajonent rate; by 
"(B) the quantity of wheat the producer is eligible to 
place under loan (or obtain a purchase agreement) but for 
which the producer forgoes obtaining the loan or agreement 
in return for payments under this subsection. 
"(3) LOAN PAYMENT RATE.—For purposes of this subsection, 
the loan payment rate shall be the amount by which— 
"(A) the loan level determined for the crop under subsec-
tion (a); exceeds 
"(B) the level at which a loan may be repaid under 
subsection (a). 
"(c) PAYMENTS.— 
"(1) DEFICIENCY PAYMENTS.— 
"(A) IN GENERAL.—The Secretary shall make available to 
producers pajonents (hereafter in this section referred to as 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3385 
'deficiency pajmotents') for each of the 1991 through 1995 
crops of wheat in an amount computed by multiplying— 
"(i) the pajmient rate; by 
"(ii) the payment acres for the crop; by 
"(iii) the farm program payment yield established for 
the crop for the farm. 
"(B) PAYMENT RATE.— 
"(i) PAYMENT RATE FOR 199I THROUGH I993 CROPS.— 
The pajnnent rate for each of the 1991 through 1993 
crops of wheat shall be the amount by which the 
established price for the crop of wheat exceeds the 
higher of— 
"(I) the national weighted average market price 
received by producers during the first 5 months of 
the marketing year for the crop, as determined by 
the Secretary; or 
"(II) the loan level determined for the crop, prior 
to any adjustment made under subsection (aX3) for 
the marketing year for the crop of wheat, 
"(ii) PAYMENT RATE OF 1994 AND 1995 CROPS.—The 
pa3rment rate for each of the 1994 and 1995 crops of 
wheat shall be calculated as provided in clause (i). 
"(iii) MINIMUM ESTABUSHED PRICE.—The established 
price for wheat shall not be less than $4.00 per bushel 
for each of the 1991 through 1995 crops, 
"(C) PAYMENT ACRES.—Payment acres for a crop shall be 
the lesser of— 
"(i) the number of acres planted to the crop for 
harvest within the permitted acreage; or 
"(ii) 100 percent of the crop acreage base for the crop 
for the farm less the quantity of reduced acreage (as 
determined under subsection (eX2)(D)). 
"(D) EMERGENCY COMPENSATION.— 
"(i) IN GENERAL.—Notwithstanding the foregoing 
provisions of this section, if the Secretary adjusts the 
level of loans and purchases for wheat under subsection 
(aX3), the Secretary shall provide emergency compensa-
tion by increasing the deficiency pajrments for wheat 
by such amount as the Secretary determines necessary 
to provide the same total return to producers as if the 
adjustment in the level of loans and purchases had not 
been made. 
"(ii) CALCULATION.—In determining the payment 
rate, per bushel, for emergency compensation pay-
ments for a crop of wheat under this subparagraph, the 
Secretary shall use the national weighted average 
market price, per bushel of wheat, received by produc-
ers during the marketing year for the crop, as deter-
mined by the Secretary. 
"(iii) DEADUNES FOR ESTIMATES AND AVAILABILITY.— 
Notwithstanding any other provision of this Act, the 
Secretary shall— 
"(I) by December 1 of the marketing year for the 
crop, estimate the national weighted average 
market price, per bushel of wheat, received by 
producers during the marketing year; 
104 STAT. 3386 
PUBLIC LAW 101-624—NOV. 28, 1990 
"(II) by December 15 of the marketing year, use 
the estimate to make available to producers who 
have elected the pajmient option authorized by this 
clause not less than 75 percent of the increase in 
payments estimated to be payable with respect to 
the crop under this subparagraph; and 
"(III) adjust the amount of each final pajonent 
for wheat to reflect any difference between the 
amount of any estimated pa3anent made under this 
clause and the amount of actual payment due 
under this subparagraph. 
"(iv) TIME FOR ELECTING PAYMENT OPTION.—Producers 
shall elect the pa3anent option authorized by clause (iii) 
at the time of entering into a contract to participate in 
the program established by this section for the crop. 
"(E) 0/92 PROGRAM.— 
"(i) IN GENERAL.—If an acreage limitation program 
under subsection (eX2) is in effect for a crop of wheat 
and the producers on a farm devote a portion of the 
msiximum pajrment acres for wheat as calculated under 
subparagraph (CXii) of the farm equal to more than 8 
percent of such wheat acreage of the farm for the crop 
to conservation uses (except as provided in subpara-
graph (F))— 
"(I) such portion of the maximum pa3nnent acres 
in excess of 8 percent of such acreage devoted to 
conservation uses (except as provided in subpara-
graph (F)) shall be considered to be planted to 
wheat for the purpose of determining the acreage 
on the farm required to be devoted to conservation 
uses in accordance with subsection (eX2XD); and 
"(II) the producers shall be eligible for pajnnents 
under this paragraph with respect to such acreage, 
"(ii) 
DEFICIENCY PAYMENTS.—Notwithstanding 
any 
other provision of this section, any producer who de-
votes a portion of the maximum pajmient acres for 
wheat for the farm to conservation uses (or other uses 
as provided in subparagraph (F)) under this subpara-
graph shall receive deficiency pa)anents on the acreage 
that is considered to be planted to wheat and eligible 
for payments under this subparagraph for the crop at a 
per-bushel rate established by the Secretary, except 
that the rate may not be established at less than the 
projected deficiency payment rate for the crop, as 
determined by the Secretary. Such projected payment 
rate for the crop shall be announced by the Secretary 
prior to the period during which wheat producers may 
agree to participate in the program for the crop. 
"(iii) ADVERSE EFFECT ON AGRIBUSINESS AND OTHER 
INTERESTS.—The 
Secretary 
shall 
implement 
this 
subparagraph in such a manner as to minimize the 
adverse effect on agribusiness and other agriculturally 
related economic interests within any county. State, or 
region. In carrying out this subparagraph, the Sec-
retary is authorized to restrict the total quantity of 
wheat acreage that may be taken out of production 
under this subparagraph, taking into consideration the 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3387 
total quantity of acreage that has or will be removed 
from production under other price support, production 
adjustment, or conservation program activities. No 
restrictions on the quantity of acreage that may be 
taken out of production in accordance with this 
subparagraph in a crop year shall be imposed in the 
case of a county in which producers were eligible to 
receive disaster emergency loans under section 321 of 
the Consolidated Farm and Rural Development Act (7 
U.S.C. 1961) as a result of a disaster that occurred 
during the crop year. 
"(iv) CROP ACREAGE AND PAYMENT YIELD.—The wheat 
crop acreage base and wheat farm program pa5anent 
yield of the farm shall not be reduced due to the fact 
that a portion of the permitted wheat acreage of the 
farm was devoted to conserving uses (except as pro-
vided in subparagraph (F)) under this subparagraph. 
"(v) LIMITATION.—Other than as provided in clauses 
(i) through (iv), pajnnents may not be made under this 
paragraph for any crop on a greater acreage than the 
acreage actually planted to wheat. 
"(vi) CONSERVATION USE ACREAGE UNDER OTHER PRO-
GRAMS.—Any acreage considered to be planted to 
wheat in accordance with clauses (i) and (iv) may not 
also be designated as conservation use acreage for the 
purpose of fulfilling any provisions under any acreage 
limitation or land diversion program requiring that the 
producers devote a specified acreage to conservation 
uses. 
"(F) ALTERNATIVE CROPS.— 
"(i) INDUSTRIAL AND OTHER CROPS.—The Secretary 
may permit, subject to such terms and conditions as the 
Secretary may prescribe, all or any part of acreage 
otherwise required to be devoted to conservation uses 
as a condition of qualif5dng for payments under 
subparagraph (E) to be devoted to sweet sorghum, guar, 
sesame, castor beans, crambe, plantago ovato, triticale, 
rye, mung beans, commodities for which no substantial 
domestic production or market exists but that could 
yield industrial raw material being imported, or likely 
to be imported, into the United States, or commodities 
grown for experimental purposes (including kenaf and 
milkweed), subject to the following sentence. The Sec-
retary may permit the acreage to be devoted to the 
production only if the Secretary determines that— 
"(I) the production is not likely to increase the 
cost of the price support program and will not 
affect farm income adversely; and 
"(II) the production is needed to provide an ade-
quate supply of the commodity, or, in the case of 
commodities for which no substantial domestic 
production or market exists but that could yield 
industrial raw materials, the production is needed 
to encourage domestic manufacture of the raw 
material £uid could lead to increased industrial use 
, of the raw material to the long-term benefit of 
United States industry. 
39-194 O - 91 - 3 : QL 3 Part 5 
104 STAT. 3388 
PUBLIC LAW 101-624—NOV. 28, 1990 
"(ii) OILSEEDS.—The Secretary shall permit, subject 
to such terms and conditions as the Secretary may 
prescribe, all or any part of acreage otherwise required 
to be devoted to conservation uses as a condition of 
qualifying for payments under subparagraph (E) to be 
devoted to sunflowers, rapeseed, canola, safflower, 
flaxseed, mustard seed, eind other minor oilseed des-
ignated by the Secretary (excluding soybeans). In im-
plementing this clause, the Secretary shall provide 
that, in order to receive payments under subparagraph 
(E), the producers shall agree to forgo eligibility to 
receive a loan under section 205 for the crop of any 
such oilseed produced on the farm. 
"(G) REDUCTION FOR DISASTER PAYMENTS.—The total quan-
tity of wheat on which pajmients would otherwise be pay-
able to a producer on a farm for any crop under this 
paragraph shall be reduced by the quantity on which any 
disaster payment is made to the producer for the crop 
under paragraph (2). 
"(2) DISASTER PAYMENTS.— 
"(A) 
PREVENTED 
PLANTING.—Except as provided in 
subparagraph (C), if the Secretary determines that the 
producers on a farm are prevented from planting any por-
tion of the acreage intended for wheat to wheat or other 
nonconserving crops because of drought, flood, or other 
natural disaster, or other condition beyond the control of 
the producers, the Secretary shall make a prevented plant-
ing disaster payment to the producers in an amount equal 
to the product obtained by multiplying— 
"(i) the number of acres so affected but not to exceed 
the acreage planted to wheat for harvest (including any 
acreage that the producers were prevented from plant-
ing to wheat or other nonconserving crops in lieu of 
wheat because of drought, flood, or other natural disas-
ter, or other condition beyond the control of the produc-
ers) in the immediately preceding year; by 
"(ii) 75 percent of the farm program payment yield 
established for the farm by the Secretary; by 
"(iii) a payment rate equal to 33 V
s percent of the 
established price for the crop. 
"(B) REDUCED YIELDS.—Except as provided in subpara-
graph (C), if the Secretary determines that because of 
drought, flood, or other natural disaster, or other condition 
beyond the control of the producers, the total quantity of 
wheat that the producers are able to harvest on any farm is 
less than the result of multiplying 60 percent of the farm 
program pa5nnent 3deld established by the Secretary for the 
crop by the acreage planted for harvest for the crop, the 
Secretary shall make a reduced yield disaster pajonent to 
the producers at a rate equal to 50 percent of the estab-
lished price for the crop for the deficiency in production 
below 60 percent for the crop. 
"(C) CROP INSURANCE.—Producers on a farm shall not be 
eligible for— 
"(i) prevented planting disaster payments under 
subparagraph (A), if prevented planting crop insurance 
is available to the producers under the Federal Crop 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3389 
Insur£ince Act (7 U.S.C. 1501 et seq.) with respect to the 
wheat acreage of the producers; or 
"(ii) reduced yield disaster payments under subpara-
graph (B), if reduced yield crop insurance is available to 
the producers under such Act with respect to the wheat 
acreage of the producers. 
"(D) ADMINISTRATION.— 
"(i) 
ECONOMIC 
EMERGENCIES.—Notwithstanding Disaster 
subparagraph (C), the Secretary may make a disaster assistance. 
payment to the producers on a farm under this para-
graph if the Secretary determines that— 
"(I) as the result of drought, flood, or other natu-
ral disaster, or other condition beyond the control 
of the producers, the producers have suffered 
substantiEil losses of production either from being 
prevented 
from 
planting 
wheat 
or 
other 
nonconserving crops or from reduced )delds; 
"(II) the losses have created an economic emer-
gency for the producers; 
"(III) crop insurance indemnity payments under 
the Federal Crop Insurance Act (7 U.S.C. 1501 et 
seq.) and other forms of assistance made available 
by the Federal Government to the producers for 
the losses are insufficient to alleviate the economic 
emergency; and 
"(IV) additional assistance must be made avail-
able to the producers to alleviate the economic 
emergency, 
"(ii) ADJUSTMENTS.—The Secretary may make such 
adjustments in the amount of payments made available 
under this paragraph with respect to an individual 
farm as necessary to ensure the equitable allotment of 
the pajonents among producers, taking into account 
other forms of Federal disaster assistance provided to 
the producers for the crop involved. 
"(d) PAYMENT YIELDS.—The farm program payment jdelds for 
farms for each crop of wheat shall be determined under title V. 
"(e) ACREAGE REDUCTION PROGRAMS.— 
"(1) IN GENERAL.— 
"(A) EsTABUSHMENT.—Notwithstanding any other provi-
sion of this Act, if the Secretary determines that the total 
supply of wheat, in the absence of an acreage limitation 
program, will be excessive taking into account the need for 
an adequate carry-over to maintain reasonable and stable 
supplies and prices and to meet a national emergency, the 
Secretary may provide for any crop of wheat an acreage 
limitation program as described in paragraph (2). 
"(B) AGRICULTURAL RESOURCES CONSERVATION PROGRAM.— 
In making a determination under subparagraph (A), the 
Secretary shall take into consideration the number of acres 
placed in the agricultural resources conservation program 
established under subtitle D of title XII of the Food Security 
Act of 1985 (16 U.S.C. 3831 et seq.). 
"(C) ANNOUNCEMENTS.—If the Secretary elects to imple-
ment an acreage limitation program for any crop year, the 
Secretary shall announce any such program not later than 
June 1 prior to the calendar year in which the crop is 
104 STAT, 3390 
PUBLIC LAW 101-624—NOV. 28, 1990 
harvested, except that in the case of the 1991 crop, the 
Secretary shall announce the program as soon as prac-
ticable after the date of enactment of this section. 
"(D) ADJUSTMENTS.—Not later than July 31 of the year 
previous to the year in which the crop is harvested, the 
Secretary may make adjustments in the program an-
nounced under subparagraph (C) if the Secretary deter-
mines that there has been a significant change in the total 
supply of wheat since the program was first announced. 
"(E) C!oMPUANCE.—As a condition of eligibility for loans, 
purchases, and payments for any such crop of wheat, except 
as provided in subsections (f) and (g) and section 504, the 
producers on a farm must comply with the terms and 
conditions of the acreage limitation program and, if ap-
plicable, a land diversion program as provided in para-
graph (5). 
"(F) ACREAGE UMITATION PROGRAM FOR 1991 CROP.—In 
the case of the 1991 crop of wheat, the Secretary shall 
provide for an acreage limitation program (as described in 
paragraph (2)) under which the acreage planted to wheat 
for harvest on a farm would be limited to the wheat crop 
acreage base for the farm for the crop reduced by not less 
than 15 percent. 
"(G) ACREAGE UMITATION PROGRAMS FOR 1992 THROUGH 
1995 CROPS.—In the case of each of the 1992 through 1995 
crops of wheat, if the Secretary estimates for a marketing 
year for the crop that the ratio of ending stocks of wheat to 
total disappearance of wheat for the preceding marketing 
year will be— 
"(i) more than 40 percent, the Secretary shall provide 
for an acreage limitation program (as described in 
parEigraph (2)) under which the acreage planted to 
wheat for harvest on a farm would be limited to the 
wheat crop acreage base for the farm for the crop 
reduced by not less than 10 percent nor more than 20 
percent; or 
"(ii) equal to or less than 40 percent, the Secretary 
may provide for such an acreage limitation program 
under which the acreeige planted to wheat for harvest 
on a farm would be limited to the wheat crop acreage 
base for the farm for the crop reduced by not more than 
0 to 15 percent. 
For the purpose of this subparagraph, the term 'total dis-
appearance' means all wheat utilization, including total 
domestic, total export, and total residual disappearance. 
"(2) ACREAGE UMITATION PROGRAM.— 
"(A) 
PERCENTAGE REDUCTIONS.—Except as provided 
in 
paragraph (3), if a wheat acreage limitation program is 
announced under paragraph (1), such limitation shall be 
achieved by appljdng a uniform percentage reduction (from 
0 to 20 percent) to the wheat crop acreage base for the crop 
for each wheat-producing farm. 
"(B) COMPUANCE.—Except as provided in subsection (g) 
and section 504, producers who knowingly produce wheat in 
excess of the permitted wheat acreage for the farm shall be 
ineligible for wheat loans, purchases, and pajrments with 
respect to that farm. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3391 
"(C) CROP ACREAGE BASES.—Wheat crop acreage bases for 
each crop of wheat shall be determined under title V. 
"(D) 
ACREAGE 
DEVOTED 
TO 
CONSERVATION 
USES.—A Regulations. 
number of acres on the farm shall be devoted to conserva-
tion uses, in accordance with regulations issued by the 
Secretary. Such number shall be determined by multiplying 
the wheat crop acreage base by the percentage reduction 
required by the Secretary. The number of acres so deter-
mined is hereafter in this subsection referred to as 'reduced 
acreage'. The remaining acreage is hereafter in this subsec-
tion referred to as 'permitted acreage'. Permitted acreage 
may be adjusted by the Secretary as provided in paragraph 
(3) and in section 504. 
"(E) 
INDIVIDUAL FARM PROGRAM ACREAGE.—Except 
as 
otherwise provided in subsection (c), the individual farm 
program acreage shall be the acreage planted on the farm 
to wheat for harvest within the permitted wheat acreage 
for the farm as established under this paragraph. 
"(F) PLANTING DESIGNATED CROPS ON REDUCED ACREAGE.— 
"(i) DEFINITION OF DESIGNATED CROP.—As used in this 
subparagraph, the term 'designated crop' means a crop 
defined in section 504(bXl), excluding any program crop 
as defined in section 502(3). 
"(ii) IN GENERAL.—Subject to clause (iii), the Sec-
retary may permit producers on a farm to plant a 
designated crop on no more than one-half of the re-
duced acreage on the farm. 
"(iii) LIMITATIONS.—If the producers on a farm elect 
to plant a designated crop on reduced acreage under 
this subparagraph— 
"(I) the amount of the deficiency payment that 
the producers are otherwise eligible to receive 
under subsection (c) shall be reduced, for each acre 
(or portion thereof) that is planted to the des-
ignated crop, by an amount equal to the deficiency 
pajonent that would be made with respect to a 
number of acres of the crop that the Secretary 
considers appropriate, except that if the producers 
on the farm are participating in a program estab-
lished for more than one program crop, the amount 
of the reduction shall be determined by prorating 
the reduction based on the acreage planted or 
considered planted on the farm to all of such pro-
gram crops; and 
"(II) the Secretary shall ensure that reductions 
in deficiency pa3nnents under subclause (I) are 
sufficient to ensure that this subparagraph will 
result in no additional cost to the Commodity 
Credit Corporation. 
"(3) TARGETED OPTION PAYMENTS.— 
"(A) IN GENERAL.—Notwithstanding gmy other provision 
of this section, if the Secretary implements an acreage 
limitation program with respect to any of the 1991 through 
1995 crops of wheat, the Secretary may make available to 
producers on a farm who do not receive payments under 
subsection (cXlXE) for such crop on the farm, adjustments 
in the level of deficiency payments that would otherwise be 
104 STAT. 3392 
PUBLIC LAW 101-624—NOV. 28, 1990 
made available to the producers if the producers exercise 
the pajonent options provided in this paragraph. 
"(B) PAYMENT OPTIONS.—If the Secretary elects to carry 
out this paragraph, the Secretary shall make the payment 
options specified in subparagraphs (C) and (D) available to 
producers who agree to make adjustments in the quantity 
of acreage diverted from the production of wheat under an 
acreage limitation program in accordance with this para-
graph. 
"(C) INCREASED ACREAGE LIMITATION OPTION.— 
"(i) INCREASE IN ESTABUSHED PRICE.—If the Secretary 
elects to carry out this paragraph, a producer shall be 
eligible to receive an increase in the established price 
for wheat under clause (ii) if the producer agrees to an 
increase in the acreage limitation percentage to be 
applied to the producers' wheat acreage base above the 
acreage limitation percentage announced by the Sec-
retary. 
"(ii) METHOD OF CALCULATION.—For the purposes of 
calculating deficiency payments to be made available to 
producers who participate in the program under this 
paragraph, the Secretary shall increase the established 
price for wheat by an amount determined by the Sec-
retary, but not less than 0.5 percent, nor more than 1 
percent, for each 1 percentage point increase in the 
acreage limitation percentage applied to the producers' 
wheat acreage base. 
"(iii) LIMITATION.—The acreage limitation percentage 
to be applied to the producers' wheat acreage base shall 
not be increased by more than 10 percentage points for 
the 1991 crop and 15 percentage points for each of the 
1992 through 1995 crops above the acreage limitation 
percentage announced by the Secretary for the crop or 
above 25 percent total for the crop. 
"(D) DECREASED ACREAGE UMITATION OPTION.— 
"(i) 
DECREASE IN ACREAGE UMITATION REQUIRE-
MENT.—If the Secretary elects to carry out this para-
graph, a producer shall be eligible to decrease the 
acreage limitation percentage applicable to the produc-
ers' wheat acreage base (as announced by the Sec-
retary) if the producer agrees to a decrease in the 
established price for wheat under clause (ii) for the 
purpose of calculating deficiency pa3mients to be made 
available to the producer. 
"(ii) METHOD OF CALCULATION.—For the purposes of 
calculating deficiency pajnnents to be made available to 
producers who choose the option set forth in this 
subparagraph, the Secretary shall decrease the estab-
lished price for wheat by an amount to be determined 
by the Secretary, but not less than 0.5 percent, nor 
more than 1 percent, for each 1 percentage point de-
crease in the acreage limitation percentage applied to 
the producers' wheat acreage base. 
"(iii) LIMITATION.—A producer may not choose to 
decrease the acreage limitation percentage applicable 
to the producers' wheat acreage base under this para-
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3393 
graph by more than one-half of the announced acreage 
limitation percentage. 
"(E) PARTICIPATION AND PRODUCTION EFFECTS.—Notwith-
standing any other provision of this paragraph, the Sec-
retary shall, to the extent practicable, ensure that the 
program provided for in this paragraph does not have a 
significant effect on program participation or total produc-
tion and shall be offered in such a manner that the 
Secretary determines will result in no additional budget 
outlays. The Secretary shall provide an analysis of the 
Secretary's determination to the Committee on Agriculture 
of the House of Representatives and the Committee on 
Agriculture, Nutrition, and Forestry of the Senate. 
"(4) ADMINISTRATION.— 
"(A) PROTECTION FROM WEEDS AND EROSION.—The regula- Regulations. 
tions issued by the Secretary under paragraph (2) with 
respect to acreage required to be devoted to conservation 
uses shall assure protection of the acreage from weeds and 
wind and water erosion. 
"(B) ANNUAL OR PERENNIAL COVER.— 
"(i) IN GENERAL.—Except as provided in paragraph 
(2), a producer who participates in an acreage reduction 
program establish^ for a crop of wheat under this 
subsection shall be required to plant to an annual or 
perennial cover 50 percent (or more, at the option of 
the producer) of the acreage that is required to be 
removed from the production of wheat, but not to 
exceed 5 percent (or more, at the option of the pro-
ducer) of the crop acreage base established for the crop. 
This requirement shall not apply with respect to arid 
areas (including summer fallow areas), as determined 
by the Secretary, 
"(ii) MULTIYEAR PROGRAM.— 
"(I) COST-SHARE ASSISTANCE.—If a producer elects 
to establish a perennial cover capable of improving 
water quality or wildlife habitat on the acreage, 
the Commodity Credit Corporation shall make 
available cost-share assistance for 25 percent of the 
approved cost of establishing the cover on not more 
than 50 percent of the acreage that is required to 
be diverted from production, but not to exceed 5 
percent (or more, at the option of the producer) of 
the crop acreage base established for a crop. 
"(II) AGREEMENT OF PRODUCER.—If a producer 
elects to establish a perennial cover on the acreage 
under this subparagraph and receives cost-share 
assistance from the Corporation with respect to the 
cover, the producer, under such terms and condi-
tions as may be prescribed by the Secretary, taking 
into consideration guidelines established by the 
State technical committees established in subtitle 
G of title XII of the Food Security Act of 1985, shall 
agree to maintain the perennial cover for a mini-
mum of 3 years, 
"(iii) CONSERVING CROPS.—The Secretary may permit, 
subject to such terms and conditions as the Secretary 
may prescribe, all or any part of the acreage to be 
104 STAT. 3394 
PUBLIC LAW 101-624—NOV. 28, 1990 
Regulations. 
devoted to sweet sorghum, guar, sesame, castor beans, 
crambe, plantago ovato, triticale, rye, mung beans, 
milkweed, or other commodity, if the Secretary deter-
mines that the production is needed to provide an 
adequate supply of the commodities, is not likely to 
increase the cost of the price support program, and will 
not affect farm income adversely. 
"(C) HAYING AND GRAZING.— 
"(i) IN GENERAL.—Except as provided in clause (ii), 
haying and grazing of reduced acreage, acreage devoted 
to a conservation use under subsection (cXlXE), and 
acreage diverted from production under a land diver-
sion program established under this section shall be 
permitted, except during any consecutive 5-month 
period that is established by the State committee estab-
lished under section 8(b) of the Soil (Ik)nservation and 
Domestic Allotment Act (16 U.S.C. 590h(b)) for a State. 
The 5-month period shall be established during the 
period beginning April 1, and ending October 31, of a 
year. 
"(ii) NATURAL DISASTERS.—In the case of a natural 
disaster, the Secretary may permit unlimited haying 
and grazing on the acreage. The Secretary may not 
exclude irrigated or irrigable acreage not planted in 
alfalfa when exercising the authority under this clause. 
"(D) WATER STORAGE USES.— 
"(i) IN GENERAL.—The regulations issued by the Sec-
retary under paragraph (2) with respect to acreage 
required to be devoted to conservation uses shall pro-
vide that land that has been converted to water storage 
uses shall be considered to be devoted to conservation 
uses if the land was devoted to wheat, feed grains, 
cotton, rice, or oilseeds in at least 3 of the immediately 
precechng 5 years. The land shall be considered to be 
devoted to conservation uses for the period that the 
land remains in water storage uses, but not to exceed 5 
years subsequent to its conversion to water storage 
uses. 
"(ii) LIMITATIONS.—Land converted to water storage 
uses for the purposes of this subparagraph may not be 
devoted to any commercial use, including commercial 
fish production. The water stored on the land may not 
be ground water. The farm on which the land is located 
must have been irrigated with ground water during at 
least 1 of the preceding 5 crop years. 
"(E) SUMMER FALLOW.—In determining the quantity of 
land to be devoted to conservation uses under an acreage 
limitation program with respect to land that has been 
farmed under summer fallow practices, as defined by the 
Secretary, the Secretary shall consider the effects of soil 
erosion and such other factors as the Secretary considers 
appropriate. 
"(5) LAND DIVERSION PAYMENTS.— 
"(A) IN GENERAL.—The Secretary may make land diver-
sion pajrments to producers of wheat, whether or not an 
acreage limitation program for wheat is in effect, if the 
Secretary determines that the land diversion pa3ntnents are 
contracts. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3395 
necessary to assist in adjusting the total national acreage of 
wheat to desirable goals. The land diversion pa3mients shall 
be made to producers who, to the extent prescribed by the 
Secretary, devote to approved conservation uses £in acreage 
of cropland on the farm in accordance with land diversion 
contracts entered into by the Secretary with the producers. 
"(B) AMOUNTS.—The amounts payable to producers under ^^^t^^™®*^* 
land diversion contracts may be determined through the 
submission of bids for the contracts by producers in such 
manner as the Secretary may prescribe or through such 
other means £is the Secretary determines appropriate. In 
determining the acceptability of contract offers, the Sec-
retary shall take into consideration the extent of the diver-
sion to be undertaken by the producers and the productivity 
of the acreage diverted. 
"(C) LIMITATION ON DIVERTED ACREAGE.—The Secretary 
shall limit the total acreage to be diverted under agree-
ments in any county or local community so as not to affect 
adversely the economy of the county or local community. 
"(6) CONSERVATION PRACTICES.— 
"(A) WiLDUFE FOOD PLOTS O
R HABITAT.—The roduced acre-
age and additional diverted acreage may be devoted to 
wildlife food plots or wildlife habitat in conformity with 
standards established by the Secretary in consultation with 
wildlife agencies. The Secretary may pay an appropriate 
share of the cost of practices designed to carry out the 
purposes of this subparagraph. 
"(B) SOIL AND WATER CONSERVATION PRACTICES.—The Sec-
retary may also pay an appropriate share of the cost of 
approved soil and water conservation practices (including 
practices that may be effective for a number of years) 
established by the producer on acreage required to be de-
voted to conservation uses or on additional diverted acre-
age. 
"(C) PuBuc ACCESSiBiUTY.—The Secretary may provide 
for an additional payment on the acreage in an amount 
determined by the Secretary to be appropriate in relation to 
the benefit to the general public if the producer agrees to 
permit, without other compensation, access to all or such 
portion of the farm, as the Secretary may prescribe, by the 
general public, for hunting, trapping, fishing, and hiking, 
subject to applicable State and Federal regulations. 
"(7) PARTICIPATION AGREEMENTS.— 
"(A) IN GENERAL.—Producers on a farm desiring to 
participate in the program conducted under this subsection 
shall execute an agreement with the Secretary providing 
for the participation not later than such date as the Sec-
retary may prescribe. 
"(B) MODIFICATION OR TERMINATION.—The Secretary may, 
by mutual agreement with producers on a farm, modify or 
terminate any such agreement if the Secretary determines 
the action necessary because of an emergency created by 
drought or other disaster or to prevent or alleviate a short-
age in the supply of agricultural commodities. The Sec-
retary may modify the agreement under this subparagraph 
for the purpose of alleviating a shortage in the supply of 
agricultural commodities only if there has been a signifi-
104 STAT. 3396 
PUBLIC LAW 101-624—NOV. 28, 1990 
cant change in the estimated stocks of the commodity since 
the Secretary announced the final terms and conditions of 
the program for the crop of wheat. 
"(8) SPECIAL OATS PLANTINGS.—In any crop year that the 
Secretary determines that projected domestic production of oats 
will not fulfill the projected domestic demand for oats, notwith-
standing the foregoing provisions of this subsection, the Sec-
retary— 
"(A) may provide that any reduced acreage may be 
planted to oate for harvest; 
"(B) may make program benefits (including loans, pur-
chases, and pajonents) available under the annual program 
for oats under section 105B available to producers with 
respect to acreage planted to oats under this paragraph; 
and 
"(C) shall not make program benefits other than the 
benefits specified in subparagraph (B) available to produc-
ers with respect to acreage planted to oats under this 
paragraph. 
"(f) INVENTORY REDUCTION PAYMENTS.— 
"(1) IN GENERAL.—The Secretary may, for each of the 1991 
through 1995 crops of wheat, make payments available to 
producers who meet the requirements of this subsection. 
"(2) FORM.—The payments may be made in the form of 
marketing certificates. 
"(3) PAYMENTS.—Payments under this subsection shall be 
determined in the same manner as provided in subsection (b). 
"(4) EuGiBiLTTY.—A producer shall be eligible to receive a 
pa)mient under this subsection for a crop if the producer— 
"(A) agrees to forgo obtaining a loan or purchase agree-
ment under subsection (a); 
"(B) agrees to forgo receiving payments under subsec-
tion (c); 
"(C) does not plant wheat for harvest in excess of the crop 
acreage base reduced by one-half of any acreage required to 
be diverted from production under subsection (e); and 
"(D) otherwise complies with this section. 
"(g) PILOT VOLUNTARY PRODUCTION LIMITATION PROGRAM.— 
"(1) IN GENERAL.—Effective for the 1992 or 1993 crops (and, if 
the Secretary so determines, the 1994 and 1995 crops), if a 
wheat acreage limitation program or a land diversion program 
is announced under subsection (d) for such crops, the Secretary 
shall carry out a pilot program in at least 15 counties in at least 
2 States where producers express am interest in participating in 
the pilot program under which the producers on a farm shgdl be 
considered to have met the requirements of such acreage limita-
tion or land diversion program if the producers meet the 
requirements of the voluntary production limitation program 
established under this subsection. 
"(2) LIMITATION ON MARKETING.—In order to comply with the 
voluntary production limitation program, the producers on a 
farm must agree not to market, barter, donate, or use on the 
farm (including use as feed for livestock) in a marketing year a 
quantity of wheat in excess of the wheat production limitation 
qugmtity for the farm for the marketing year. 
"(3) PRODUCTION UMITATION QUANTITY.—For purposes of this 
subsection, the production limitation quantity for a farm for a 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3397 
marketing year for a crop shsill equal the product obtained by 
multipljdng— 
"(A) the acreage permitted to be planted to wheat under 
the acreage reduction program or land diversion program 
in effect for the crop for the farm; by 
"(B) the higher of— 
"(i) the farm program payment jdeld for the farm; or 
"(ii) the average of the 5deld per harvested acre for 
wheat for the farm for each of the 5 crop years imme-
diately preceding the crop year during which the 
producers first participate in the program established 
under this subsection, excluding the crop years with 
the highest and lowest yield per harvested acre and 
any crop year in which the commodity was not planted 
on the farm. 
"(4) TERMS AND CONDITIONS.—Producers on a farm who elect 
to participate in the program established under this subsection 
for a crop of wheat shall— 
"(A) enter into an agreement with the Secretary provid- Cooperative 
ing that the producers shall comply with the program for agreements. 
the crop; 
"(B) not plant program commodities for harvest in a 
quantity in excess of the sum of the crop acreage bases for 
the farm; £ind 
"(C) be considered to have complied with the terms and 
conditions of the wheat acreage reduction program or land 
diversion program for the crop, even though the acreage 
planted to wheat on the farm exceeds the permitted acreage 
provided under the acreage reduction or land diversion 
program. 
"(5) EXCESS PRODUCTION.— 
"(A) IN GENERAL.—Any quantity of wheat produced in a 
crop year on a farm in excess of the production limitation 
quantity for the farm may be stored by the producers for a 
period of not to exceed 5 marketing years and may be used 
only in accordance with this paragraph. 
"(B) MARKETING IN SUBSEQUENT YEAR.— 
"(i) PARTICIPANTS IN PROGRAM.—Producers on a farm 
who are participating in the program established under 
this subsection may market, barter, or use a quantity of 
the excess wheat referred to in subparagraph (A) equal 
to the difference between the production limitation 
quantity for the farm for the crop year subsequent to 
the crop year in which the excess wheat is produced 
less the quantity of wheat produced on the farm during 
the crop year. 
"(ii) 
PARTICIPANTS 
IN 
ACREAGE 
REDUCTION 
PRO-
GRAM.—Producers on a farm who are participating in 
an acreage reduction or a land diversion program for a 
crop of wheat may market, barter, or use a quantity of 
the excess wheat referred to in subparagraph (A) in an 
amount that reflects the quantity of wheat that would 
be expected to be produced on acreage that the produc-
ers agree to devote to approved conservation uses (in 
excess of any acreage reduction or land diversion 
requirements) during a crop year, as determined by the 
Secretary. 
104 STAT. 3398 
PUBLIC LAW 101-624—NOV. 28, 1990 
"(6) DUTIES OF SECRETARY.—In carr3dng out the pilot program 
established under this subsection, the Secretary— 
Regulations. 
"(A) shall issue such regulations as are necessary to carry 
out the program; 
"(B) may require increased acreage reduction or land 
diversion requirements with respect to producers who have 
had excess wheat production in order to allow the produc-
ers to market, barter, or use the production in subsequent 
years; 
"(C) shall take appropriate measures designed to prevent 
the circumvention of the pro-am established under this 
subsection, including the imposition of penalties; 
"(D) may require producers who participate in the pro-
gram for a crop, but who fail to comply with the terms and 
conditions of the program, to refund all or a part of any 
deficiency pa3anents received with respect to the crop; 
"(E) may require the forfeiture to the Commodity Credit 
Corporation of any wheat that is produced in excess of the 
production limitation quantity and that is not marketed, 
bartered, or used within 5 marketing years; and 
"(F) shall ensure equitable treatment for producers who 
participate in the pilot program if the Secretary allows 
increases (based on actual production levels) in the deter-
mination of farm program payment 3delds for wheat for the 
farm. 
"(7) REPORT.— 
"(A) IN GENERAL.—The Comptroller General of the 
United States shall prepare a report that evaluates the 
pilot program carried out under this subsection. 
"(B) SUBMISSION.—The C!omptroller General shall submit 
a copy of the report required by subparagraph (A) to the 
Committee on Agriculture of the House of Representatives, 
the Committee on Agriculture, Nutrition, and Forestry of 
the Senate, and the Secretary. 
"(h) EQUITABLE REUEF.— 
"(1) LOANS, PURCHASES, AND PAYMENTS.—If the failure of a 
producer to comply fully with the terms and conditions of the 
program conducted under this section precludes the making of 
loans, purchases, and pa3mients, the Secretary may, neverthe-
less, make such loans, purchases, and pa3anents in such 
amounts as the Secretary determines are equitable in relation 
to the seriousness of the failure. The Secretary may consider 
whether the producer made a good faith effort to comply fully 
with the terms and conditions of such program in determining 
whether equitable relief is warreinted under this paragraph. 
"(2) DEADUNES AND PROGRAM REQUIREMENTS.—The Secretary 
may authorize the county and State committees established 
under section 8(b) of the &)il C!onservation and Domestic Allot-
ment Act (16 U.S.C. 590h(b)) to waive or modify deadlines and 
other program requirements in cases in which lateness or fail-
ure to meet such other requirements does not affect adversely 
the operation of the program, 
"(i) REGULATIONS.—The Secretary may issue such regulations as 
the Secretary determines necessary to carry out this section. 
"(j) COMMODITY CREDIT CORPORATION.—The Secretary shall carry 
out the program authorized by this section through the Commodity 
Credit Corporation. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3399 
"(k) ASSIGNMENT OF PAYMENTS.—The provisions of section 8(g) of 
the Soil Conservation and Domestic Allotment Act (16 U.S.C. 
590h(g)) (relating to assignment of pajmients) shall apply to pay-
ments under this section. 
"(1) SHARING OF PAYMENTS.—The Secretary shall provide for the 
sharing of pajmients made under this section for any farm among 
the producers on the farm on a fair and equitable basis. 
"(m) TENANTS AND SHARECROPPERS.—The Secretary shall provide 
adequate safeguards to protect the interests of tenants and share-
croppers, 
"(n) CROSS-COMPUANCE.— 
"(1) IN GENERAL.—Compliance on a farm with the terms and 
conditions of any other commodity program, or compliance with 
crop acreage base requirements for any other commodity, may 
not be required as a condition of eligibility for loans, purchases, 
or pa3maents under this section. 
"(2) CoMPUANCE ON OTHER FARMS.—The Secretary may not 
require producers on a farm, as a condition of eligibility for 
loans, purchases, or payments under this section for the farm, to 
comply with the terms and conditions of the wheat program 
with respect to any other farm operated by the producersi^ 
"(o) PuBuc COMMENT ON WHEAT PROGRAM.— 
"(1) IN GENERAL.—In order to ensure that producers and 
consumers of wheat are provided with reasonable opportunity 
to comment on the annual program determinations concerning 
the price support and acreage reduction program for each of the 
1992 and subsequent crops of wheat, the Secretary shall request 
public comment regarding the wheat program in accordance 
with this subsection. 
"(2) OPTIONS.—Not less than 60 days before the program is 
announced for a crop of wheat under this section, the Secretary 
shall propose for public comment various program options for 
the crop of wheat. 
"(3) ANALYSES.—Each option proposed by the Secretary shall 
be accompanied by an analysis that includes the estimated 
planted acreage, production, domestic £md export use, ending 
stocks, season average producer price, program participation 
rate, and cost to the Federal Government that would likely 
result from each option. 
"(4) ESTIMATES.—In announcing the program for a crop of 
wheat under this section, the Secretary shall include an esti-
mate of the planted acreage, production, domestic and export 
use, ending stocks, season average producer price, program 
participation rate, and cost to the Federal Government that is 
expected to result from the program as announced, 
"(p) SPECIAL PROVISIONS FOR WHEAT PLANTED IN 1990.—Effective 
with respect to producers of the 1991 crop of wheat that was planted 
in 1990, a producer may, when participating in the production 
adjustment program for the 1991 crop of wheat specified in this 
section elect to participate in the program with the following modi-
fications: 
"(1) DEFICIENCY PAYMENTS.—The producer's deficiency pay-
ment shall be the amount by which the established price for the 
crop of wheat exceeds the higher o
f
— 
"(A) the lesser o
f
— 
104 STAT. 3400 
PUBLIC LAW 101-624—NOV. 28, 1990 
7 use 1379d 
note. 
7 use 1331 note. 
7 use 1340 note. 
7 use 1445a 
note. 
"(i) the national weighted average market price re-
ceived by producers during the marketing year for the 
crop, as determined by the Secretary; or 
"(ii) the national weighted average market price re-
ceived by producers during the first 5 months of the 
marketing year for the crop, as determined by the 
Secretary, plus 10 cents per bushel; or 
"(B) the loan level determined for the crop, prior to any 
adjustment made under subsection (a)(3) for the marketing 
year for the crop of wheat. 
"(2) PAYMENT ACRES.—The producer's payment acres shall be 
the lesser of— 
"(A) the number of acres planted to the crop for harvest 
within the permitted acreage; or 
"(B) 100 percent of the crop acresige base for the crop for 
the farm less the quantity of reduced acreage (as deter-
mined under subsection (eX2XD)). 
"(q) CROPS.—Notwithstanding any other provision of law, this 
section shall be effective only for the 1991 through 1995 crops of 
wheat.". 
SEC. 302. NONAPPLICABILITY OF CERTIFICATE REQUIREMENTS. 
Sections 379d through 379j of the Agricultural Adjustment Act of 
1938 (7 U.S.C. 1379d-1379j) (relating to marketing certificate 
requirements for processors and exporters) shall not be applicable to 
wheat processors or exporters during the period June 1, 1991, 
through May 31,1996. 
SEC. 303. SUSPENSION OF LAND USE, WHEAT MARKETING ALLOCATION, 
AND PRODUCER CERTIFICATE PROVISIONS. 
Sections 331 through 339, 379b, and 379c of the Agricultural 
Adjustment Act of 1938 (7 U.S.C. 1331 through 1339, 1379b, and 
1379c) shall not be applicable to the 1991 through 1995 crops of 
wheat. 
SEC. 304. SUSPENSION OF CERTAIN QUOTA PROVISIONS. 
The joint resolution entitled "A joint resolution relating to corn 
and wheat marketing quotas under the Agricultural Adjustment 
Act of 1938, as amended^', approved May 26,1941 (7 U.S.C. 1330 and 
1340) shall not be applicable to the crops of wheat planted for 
harvest in the calendar years 1991 through 1995. 
SEC. 305. NONAPPLICABILITY OF SECTION 107 OF THE AGRICULTURAL 
ACT OF 1949 TO THE 1991 THROUGH 1995 CROPS OF WHEAT. 
Section 107 of the Agricultural Act of 1949 (7 U.S.C. 1445a) shall 
not be applicable to the 1991 through 1995 crops of wheat. 
TITLE IV—FEED GRAINS 
SEC. 4
0
1
, 
LOANS, 
PAYMENTS, 
AND 
ACREAGE 
REDUCTION 
PROGRAMS 
FOR 
THE 
1
9
9
1 
THROUGH 
1
9
9
5 
CROPS 
OF 
FEED 
GRAINS. 
The Agricultural Act of 1949 is amended— 
(1) by repealing sections 105A and 105B (7 U.S.C. 1444c and 
1444d); 
(2) by redesignating section 105C (7 U.S.C. 1444e) as section 
105A; and 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3401 
(3) by inserting after section 105A (as so redesignated) the 
following new section: 
•SEC. 105B. LOANS, PAYMENTS, AND ACREAGE REDUCTION PROGRAMS 7 USC 1444f. 
FOR THE 1991 THROUGH 1995 CROPS OF FEED GRAINS. 
"(a) LOANS AND PURCHASES.— 
"(1) IN GENERAL.—Except as otherwise provided in this 
subsection, the Secretary shall make available to producers on a 
farm loans and purchases for each of the 1991 through 1995 
crops of com produced on the farm at such level £is the Sec-
retary determines will encourage the exportation of feed grains 
and not result in excessive total stocks of feed grains after 
taking into consideration the cost of producing com, supply and 
demand conditions, and world prices for corn. 
"(2) MINIMUM LOAN AND PURCHASE LEVEL.—Except as pro-
vided in paragraphs (3) and (4), the loan and purchase level 
determined under paragraph (1) shall not be less than 85 per-
cent of the simple average price received by producers of com, 
as determined by the Secretary, during the marketing years for 
the immediately preceding 5 crops of corn, excluding the year in 
which the average price was the highest and the year in which 
the average price was the lowest in such period, except that the 
loan and purchase level for a crop determined under this para-
graph may not be reduced by more than 5 percent from the 
level determined for the preceding crop. 
"(3) ADJUSTMENTS TO SUPPORT LEVEL.— 
"(A) STOCKS TO USE RATIO.— If the Secretary estimates for 
any marketing year that the ratio of ending stocks of corn 
to total use for the marketing year will be— 
"(i) equal to or greater than 25 percent, the Secretary 
may reduce the loan and purchase level for corn for the 
corresponding crop by an amount not to exceed 10 
percent in any year; 
"(ii) less than 25 percent but not less than 12.5 
percent, the Secretary may reduce the loan and pur-
chase level for corn for the corresponding crop by an 
amount not to exceed 5 percent in any year; or 
"(iii) less than 12.5 percent the Secretary may not 
reduce the loan and purchase level for corn for the 
corresponding crop. 
"(B) REPORT TO CONGRESS.— 
"(i) IN GENERAL.—If the Secretary adjusts the level of 
loans and purchases for com under subparagraph (A), 
the Secretary shall submit to the Committee on Agri-
culture of the House of Representatives and the 
Committee on Agriculture, Nutrition, and Forestry of 
the Senate a report— 
"(I) certifying such adjustment as necessary to 
prevent the accumulation of stocks and to retain 
market share; and 
"(II) containing a description of the need for such 
adjustment, 
"(ii) EFFECTIVE DATE OF ADJUSTMENT.—The adjust-
ment shall become effective no earlier than 60 calendar 
days after the date of submission of the report to the 
Committees, except that in the case of the 1991 crop of 
104 STAT. 3402 
PUBLIC LAW 101-624—NOV. 28, 1990 
Regulations. 
feed grains, the adjustment shall become effective on 
the date of the submission of the report. 
"(C) CoMPErrrnvE POSITION.—Notwithstanding subpara-
graph (A), if the Secretary determines, not later than 60 
days prior to the beginning of a marketing year for a crop, 
that the effective loan rate established for such crop will 
not maintain a competitive market position for com, the 
Secretary may reduce the loan and purchase level for com 
for the marketing year by an amount, in addition to any 
reductio^i under subparagraph (A), not to exceed 10 percent 
in any year. 
"(D) No EFFECT ON FUTURE YEARS.—Any reductiou in the 
loan and purchase level for corn under this paragraph shall 
not be considered in determining the loan and purchase 
level for com for subsequent years. 
"(E) MINIMUM LOAN RATE.—Notwithstanding subpara-
graph (A), the loan rate for com shall not be less than $1.76 
per bushel, unless such rate would exceed 80 percent of the 
5-year average market price determination. 
"(4) MARKETING LOAN PROVISIONS.— 
"(A) IN GENERAL.—The Secretary may permit a producer 
to repay a loan made under this subsection for a crop at a 
level (except as provided in subparagraph (C)) that is the 
lesser of— 
"(i) the loan level determined for the crop; 
"(ii) the higher of— 
"(I) 70 percent of such level; 
"(II) if the loan level for a crop was reduced 
under paragraph (3), 70 percent of the loan level 
that would have been in effect but for the reduc-
tion under paragraph (3); or 
"(iii) the prevailing world market price for feed 
grains (adjusted to United States quality and location), 
as determined by the Secretary. 
"(B) PREVAILING WORLD MARKET PRICE.—If the Secretary 
permits a producer to repay a loan in accordance with 
subparagraph (A), the Secretary shall prescribe by regula-
tion— 
"(i) a formula to determine the prevailing world 
market price for feed grains, adjusted to United States 
quality £Uid location; and 
"(ii) a mechanism by which the Secretary shall an-
nounce periodically the prevailing world market price 
for feed grains. 
"(C) ALTERNATIVE REPAYMENT RATES.—For each of the 
1991 through 1995 crops of feed grains, if the world market 
price for feed grains (adjusted to United States quality and 
location) as determined by the Secretary, is less than the 
loan level determined for the crop, the Secretary may 
permit a producer to repay a loan made under this subsec-
tion for a crop at such level (not in excess of the loan level 
determined for the crop) as the Secretary determines will— 
"(i) minimize potential loan forfeitures; 
"(ii) minimize the accumulation of feed grain stocks 
by the Federal (Jovernment; 
"(iii) minimize the cost incurred by the Federal 
Government in storing feed grains; and 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3403 
"(iv) allow feed grains produced in the United States 
to be marketed freely and competitively, both domesti-
cally and internationally. 
"(5) SIMPLE AVERAGE PRICE.—For purposes of this section, the 
simple average price received by producers for the immediately 
preceding marketing year shall be based on the latest informa-
tion available to the Secretary at the time of the determination. 
"(6) OTHER FEED GRAINS.—The Secretary shall make available 
to producers loans and purchases for each of the 1991 through 
1995 crops of grain sorghums, barley, oats, and rye, respectively, 
produced on the farm at such level as the Secretary determines 
is fair and reasonable in relation to the level that loans and 
purchases are made available for com, taking into consideration 
the feeding value of the commodity in relation to com and other 
factors specified in section 401(b). 
"(b) LOAN DEFICIENCY PAYMENTS.— 
"(1) IN GENERAL.—The Secretary may, for each of the 1991 
through 1995 crops of feed grains, make pajnnents (hereafter in 
this section referred to as 'loan deficiency payments') available 
to producers who, although eligible to obtain a loan or purchase 
agreement under subsection (a), agree to forgo obtaining the 
loan or agreement in return for pajnnents under this subsection. 
"(2) COMPUTATION.—A payment under this subsection shall be 
computed by multiplying— 
"(A) the loan pajmient rate; by 
"(B) the quantity of feed grains the producer is eligible to 
place under loan (or obtain a purchase agreement) but for 
which the producer forgoes obtaining the loan or agreement 
in return for pa3nnents under this subsection. 
"(3) LOAN PAYMENT RATE.—For purposes of this subsection, 
the loan payment rate shall be the amount by which— 
"(A) the loan level determined for the crop under subsec-
tion (a); exceeds 
"(B) the level at which a loan may be repaid under 
subsection (a). 
"(c) PAYMENTS.— 
"(1) DEFICIENCY PAYMENTS.— 
"(A) IN GENERAL.—The Secretary shall make available to 
producers pajonents (hereafter in this section referred to as 
'deficiency payments') for each of the 1991 through 1995 
crops of com, grain sorghums, oats, and barley, in an 
amount computed by multiplying— 
"(i) the pa)rment rate; by 
"(ii) the payment acres for the crop; by 
"(iii) the farm program payment yield established for 
the crop for the farm. 
"(B) PAYMENT RATE.— 
"(i) PAYMENT RATE FOR 1991 THROUGH 1993 CROPS.— 
The pa3anent rate for each of the 1991 through 1993 
crops of com, grain sorghums, oats, and barley shall be 
the sunount by which the established price for the 
respective crop of feed grains exceeds the higher of— 
"(I) the national weighted average market price 
received by producers during the first 5 months of 
the marketing year for the crop, as determined by 
the Secretary; or 
104 STAT. 3404 
PUBLIC LAW 101-624—NOV. 28, 1990 
"(II) the loan level determined for .the crop, prior 
to any adjustment made under subsection (aX3) for 
the marketing year for the crop, 
"(ii) PAYMENT RATE OF 1994 AND 1995 CROPS.—The 
pa5mient rate for each of the 1994 and 1995 crops of 
com, grain sorghums, oats, and barley shall be deter-
mined as provided in clause (i). 
"(iii) MINIMUM ESTABUSHED PRICES.— 
"(I) CORN.—The established price for com shall 
not be less than $2.75 per bushel for each of the 
1991 through 1995 crops of corn. 
"(II) OATS.—The established price for oats shall 
be such price as the Secretary determines is fair 
and reasonable in relation to the established price 
for corn, but not less than $1.45 per bushel. 
"(Ill) GRAIN SORGHUMS.—The established price 
for each of the 1991 through 1995 crops of grain 
sorghums shall not be less than $2.61 per bushel. 
"(IV) BARLEY.— 
"(aa) IN GENERAL.—The established price for 
barley shall be such price as the Secretary 
determines is fair and reasonable in relation to 
the established price for corn, taking into 
consideration the various feed and food uses 
for barley. The established price for barley 
shall not be less than 85.8 percent of the estab-
lished price for corn. 
"(bb) BARLEY CALCULATIONS.—The Secretary 
shall, for purposes of determining the pajnment 
rate for barley under clause (iXD and subpara-
graph (DXii), use the national weighted aver-
age market price received by producers of 
barley sold primarily for feed purposes. 
"(cc) ADVANCE PAYMENTS.—In the case of the 
1991 crop of barley, the Secretary shall, for 
purposes of determining any advance defi-
ciency pajnnent made to the producers of 
barley under section 114, use the national 
weighted average market price received by 
producers for all barley, as determined by the 
Secretary. 
"(dd) EQUITY.—In implementing this subsec-
tion, the Secretary shall make available to 
producers of the 1991 crop of barley, notwith-
standing the method of calculation or the 
amount of the advance deficiency pa3nnent, 
the total amount of payments as calculated 
under clause (bb). 
"(C) PAYMENT ACRES.—Pajnnent acres for a crop shall be 
the lesser of— 
"(i) the number of acres planted to the crop for 
harvest within the permitted acreage; or 
"(ii) 100 percent of the crop acreage base for the crop 
for the farm less the quantity of reduced acreage (as 
determined under subsection (eX2XD)). 
"(D) EMERGENCY COMPENSATION.— 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3405 
"(i) IN GENERAL.—Notwithstanding the foregoing 
provisions of this section, if the Secretary adjusts the 
level of loans and purchases for feed grains under 
subsection (aX3), the Secretary shall provide emergency 
compensation by increasing the deficiency payments 
for feed grains by such Eimount as the Secretary deter-
mines necessary to provide the same total return to 
producers as if the adjustment in the level of lo£ms and 
purchases had not been made. 
"(ii) CALCULATION.—In determining the pajmient 
rate, per bushel, for emergency compensation pay-
ments for a crop of feed grains under this subpara-
graph, the Secretary shall use the national weighted 
average market price, per bushel of feed grains, re-
ceived by producers during the marketing year for the 
crop, as determined by the Secretary. 
'(E) 0/92 PROGRAM.— 
"(i) IN GENERAL.—If an acreage limitation program 
under subsection (eX2) is in effect for a crop of feed 
grains and the producers on a farm devote a portion of 
the maximum pajmient acres for feed grains as cal-
culated under subparagraph (CXii) of the farm equal to 
more than 8 percent of such feed grain acreage of the 
farm for the crop, to conservation uses (except as pro-
vided in subparagraph (F))— 
"(I) such portion of the maximum payment acres 
of the farm in excess of 8 percent of such acreage 
devoted to conservation uses (except as provided in 
subparagraph (F)) shall be considered to be planted 
to feed grains for the purpose of determining the 
acreage on the farm required to be devoted to 
conservation uses in accordance with subsection 
(eX2XD); and 
"(II) the producers shall be eligible for pa5rments 
under this paragraph with respect to such acreage, 
"(ii) 
DEFICIENCY PAYMENTS.—Notwithstanding 
any 
other provision of this section, any producer who de-
votes a portion of the maximum payment acres for feed 
grgdns for the farm to conservation uses (or other uses 
as provided in subparagraph (F)) under this subpara-
graph shall receive deficiency pajmients on the acreage 
that is considered to be planted to feed grains and 
eligible for pajrments under this subpargigraph for the 
crop at a per-bushel rate established by the Secretary, 
except that the rate may not be established at less than 
the projected deficiency payment rate for the crop, as 
determined by the Secretary. Such projected payment 
rate for the crop shall be announced by the Secretary 
prior to the period during which feed grain producers 
may agree to participate in the program for the crop, 
"(iii) ADVERSE EFFECT ON AGRIBUSINESS AND OTHER 
INTERESTS.—The 
Secretary 
shall 
implement 
this 
subparagraph in such a manner as to minimize the 
adverse effect on agribusiness and other agriculturally 
related economic interests within any county, State, or 
region. In carrying out this subparagraph, the Sec-
retary is authorized to restrict the total quantity of 
104 STAT. 3406 
PUBLIC LAW 101-624—NOV. 28, 1990 
feed grain acreage that may be taken out of production 
under this subparagraph, taking into consideration the 
total quantity of acreage that has or will be removed 
from production under other price support, production 
adjustment, or conservation program activities. No 
restrictions on the quantity of acreage that may be 
taken out of production in accordance with this 
subparagraph in a crop year shall be imposed in the 
case of a county in which producers were eligible to 
receive disaster emergency loans under section 321 of 
the Consolidated Farm and Rural Development Act (7 
U.S.C. 1961) as a result of a disaster that occurred 
during the crop year. 
"(iv) CROP ACREAGE AND PAYMENT YIELD.—The feed 
grain crop acreage base and feed grain farm program 
pajnnent 5deld of the farm shall not be reduced due to 
the fact that a portion of the permitted feed grain 
acreage of the farm was devoted to conserving uses 
(except as provided in subparagraph (F)) under this 
subparagraph. 
"(v) LIMITATION.—Other than as provided in clauses 
(i) through (iv), payments may not be made under this 
paragraph for any crop on a greater acreage than the 
acreage actually planted to feed grains. 
"(vi) CONSERVATION USE ACREAGE UNDER OTHER PRO-
GRAMS.—Any acreage considered to be planted to feed 
grains in accordance with clauses (i) and (iv) may not 
also be designated as conservation use acreage for the 
purpose of fulfilling any provisions under any acreage 
limitation or land diversion program requiring that the 
producers devote a specified acreage to conservation 
uses. 
"(F) ALTERNATIVE CROPS.— 
"(i) INDUSTRIAL AND OTHER CROPS.—The Secretary 
may permit, subject to such terms and conditions as the 
Secretary may prescribe, all or any part of acreage 
otherwise required to be devoted to conservation uses 
as a condition of qualif5ring for pa3anents under 
subparagraph (E) to be devoted to sweet sorghum, guar, 
sesame, castor beans, crambe, plantago ovato, triticale, 
rye, mung beans, commodities for which no substantial 
domestic production or market exists but that could 
3deld industrial raw material being imported, or likely 
to be imported, into the United States, or commodities 
grown for experimental purposes (including kenaf and 
milkweed), subject to the following sentence. The Sec-
retary may permit the acreage to be devoted to the 
production only if the Secretary determines that— 
"(I) the production is not likely to increase the 
cost of the price support program and will not 
affect farm income adversely; and 
"(II) the production is needed to provide an ade-
quate supply of the commodity, or, in the case of 
commodities for which no substantial domestic 
production or market exists but that could yield 
industrial raw materials, the production is needed 
to encourage domestic manufacture of the raw 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3407 
material and could lead to increased industrial use 
of the raw material to the long-term benefit of 
United States industry, 
"(ii) OILSEEDS.—The Secretary shall permit, subject 
to such terms and conditions as the Secretary may 
prescribe, all or any part of acreage otherwise required 
to be devoted to conservation uses as a condition of 
qualifying for payments under subparagraph (E) to be 
devoted to sunflowers, rapeseed, canola, safflower, 
flaxseed, mustard seed, and other minor oilseeds des-
ignated by the Secretary (excluding soybeans). In im-
plementing this clause, the Secretary shall provide 
that, in order to receive payments under subparagraph 
(E), the producers shall agree to forgo eligibility to 
receive a loan under section 205 for the crop of any 
such oilseed produced on the farm. 
"(G) REDUCTION FOR DISASTER PAYMENTS,—The total quan-
tity of feed grains on which payments would otherwise be 
payable to a producer on a farm for any crop under this 
paragraph shall be reduced by the quantity on which any 
disaster payment is made to the producer for the crop 
under paragraph (2). 
'(2) DISASTER PAYMENTS.— 
"(A) 
PREVENTED 
PLANTING.—Except as provided in 
subparagraph (C), if the Secretary determines that the 
producers on a farm are prevented from planting any por-
tion of the acreage intended for feed grains to feed grains or 
other nonconserving crops because of drought, flood, or 
other natural disaster, or other condition beyond the con-
trol of the producers, the Secretary shall make a prevented 
planting disaster pa3mient to the producers in an amount 
equal to the product obtained by multiplying— 
"(i) the number of acres so affected but not to exceed 
the acreage planted to feed grains for harvest (includ-
ing any acreage that the producers were prevented 
from planting to feed grains or other nonconserving 
crops in lieu of feed grains because of drought, flood, or 
other natural disaster, or other condition beyond the 
control of the producers) in the immediately preceding 
year; by 
"(ii) 75 percent of the farm program payment jdeld 
established for the farm by the Secretary; by 
"(iii) a pa5nnent rate equal to 33 V
s percent of the 
established price for the crop. 
"(B) REDUCED YIELDS.—Except as provided in subpara-
graph (C), if the Secretary determines that because of 
drought, flood, or other natural disaster, or other condition 
beyond the control of the producers, the total quantity of 
feed grains that the producers are able to harvest on any 
farm is less than the result of multiplying 60 percent of the 
farm program payment yield established by the Secretary 
for the crop by the acreage planted for harvest for the crop, 
the Secretary shall make a reduced jdeld disaster pa}rment 
to the producers at a rate equal to 50 percent of the 
established price for the crop for the deficiency in produc-
tion below 60 percent for the crop. 
104 STAT. 3408 
PUBLIC LAW 101-624—NOV. 28, 1990 
"(C) CROP INSURANCE.—Producers on a farm shall not be 
eligible for— 
"(i) prevented planting disaster payments under 
subparagraph (A), if prevented planting crop insurance 
is available to the producers under the Federal Crop 
Insurance Act (7 U.S.C. 1501 et seq.) with respect to the 
feed grain acreage of the producers; or 
"(ii) reduced yield disaster pa3mients under subpara-
graph (B), if reduced yield crop insurance is available to 
the producers under such Act with respect to the feed 
grain acreage of the producers. 
"(D) ADMINISTRATION.— 
"(i) 
ECONOMIC 
EMERGENCIES.—Notwithstanding 
subparagraph (C), the Secretary may make a disaster 
pajmient to the producers on a farm under this para-
graph if the Secretary determines that— 
"(I) as the result of drought, flood, or other natu-
ral disaster, or other condition beyond the control 
of the producers, the producers have suffered 
substantial losses of production either from being 
prevented from planting feed grains or other 
nonconserving crops or from reduced 5delds; 
"(II) the losses have created an economic emer-
gency for the producers; 
"(III) crop insurance indemnity payments under 
the Federal Crop Insurance Act (7 U.S.C. 1501 et 
seq.) and other forms of assistance made available 
by the Federal Government to the producers for 
the losses are insufficient to alleviate the economic 
emergency; and 
"(IV) additional assistance must be made avail-
able to the producers to alleviate the economic 
emergency, 
"(ii) ADJUSTMENTS.—The Secretary may make such 
adjustments in the amount of payments made available 
under this paragraph with respect to an individual 
farm as necessary to ensure the equitable allotment of 
the pajonents among producers, taking into account 
other forms of Federsd disaster assistance provided to 
the producers for the crop involved. 
"(d) PAYMENT YIELDS.—The farm program payment yields for 
farms for each crop of feed grains shall be determined under title V. 
"(e) ACREAGE REDUCTION PROGRAMS.— 
"(1) IN GENERAL.— 
"(A) ESTABLISHMENT.—Notwithstanding any other provi-
sion of this Act, if the Secretary determines that the total 
supply of corn, grain sorghum, barley, or oats, in the ab-
sence of an acreage limitation program, will be excessive 
taking into account the need for an adequate carry-over to 
maintain reasonable and stable supplies and prices and to 
meet a national emergency, the Secretary may provide for 
any crop of corn, grain sorghum, barley, or oats an acreage 
limitation program as described in paragraph (2). 
"(B) AGRICULTURAL RESOURCES CONSERVATION PROGRAM.— 
In making a determination under subparagraph (A), the 
Secretary shall take into consideration the number of acres 
placed in the agricultural resources conservation program 
^^mw-'i 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3409 
established under subtitle D of title XII of the Food Security 
Act of 1985 (16 U.S.C. 3831 et seq.). 
"(C) ANNOUNCEMENTS.—If the Secretary elects to imple-
ment an acreage limitation program for any crop year, the 
Secretary shall announce the program not later than 
September 30 prior to the calendar year in which the crop 
is harvested, except that in the case of the 1991 crop, the 
Secretary shall announce the program as soon as prac-
ticable after the date of enactment of this section. 
"(D) ADJUSTMENTS.—Not later than November 15 of the 
year previous to the year in which the crop is harvested, the 
Secretary may make adjustments in the program an-
nounced under subparagraph (C) if the Secretary deter-
mines that there has been a signihcant change in the total 
supply of feed grains since the program was first an-
nounced. 
"(E) COMPLIANCE.—As a condition of eligibility for loans, 
purchases, and payments for any such crop of feed grains, 
except as provided in subsections (f) and (g) and section 504, 
the producers on a farm must comply with the terms and 
conditions of the acreage limitation program and, if ap-
plicable, a land diversion program as provided in paragraph 
(5). 
"(F) ACREAGE UMITATION PROGRAM FOR 1991 CROP.—In 
the case of the 1991 crop of com, the Secretary shall provide 
for an acreage limitation program (as described in para-
graph (2)) as provided in subparagraph (G). 
"(G) ACREAGE UMITATION PROGRAMS FOR 1992 THROUGH 
1995 CROPS.—In the case of each of the 1992 through 1995 
crops of com, if the Secretary estimates for a marketing 
year for the crop that the ratio of ending stocks of com to 
total disappearance of corn for the preceding marketing 
year will be— 
"(i) more than 25 percent, the Secretary shall provide 
for an acreage limitation program (as described in 
paragraph (2)) under which the acreage plemted to com 
for harvest on a farm would be limited to the corn crop 
acreage base for the farm for the crop reduced by not 
less than 10 percent nor more than 20 percent; or 
"(ii) equal to or less than 25 percent, the Secretary 
may provide for such an acreage limitation program 
under which the acreage planted to com for harvest on 
a farm would be limited to the corn crop acreage base 
for the farm for the crop reduced by not more than 0 to 
12.5 percent. 
For the purpose of this subparagraph, the term 'total dis-
appearance' means all corn utilization, including total 
domestic, total export, and total residual disappearance. 
"(H) ACREAGE UMITATION PROGRAM FOR i99i THROUGH 
1995 CROPS OF OATS.—In the case of each of the 1991 through 
1995 crops of oats, the Secretary shall provide for an acre-
age limitation program (as described in paragraph (2)) 
under which the acreage planted to oats for harvest on a 
farm would be limited to the oat crop acreage base for the 
farm for the crop reduced by not more than 0 percent. 
"(2) ACREAGE UMITATION PROGRAM.— 
104 STAT. 3410 
PUBLIC LAW 101-624—NOV. 28, 1990 
Regulations. 
"(A) PERCENTAGE REDUCTIONS.—Except as provided in 
paragraph (3), if a feed grain acreage limitation program is 
announced under paragraph (1), such limitation shall be 
achieved by appl3dng a uniform percentage reduction (from 
0 to 20 percent) to the crop acreage base for corn, grain 
sorghum, barley, or oats, respectively, for each feed grain-
producing farm. 
"(B) COMPUANCE.—Except as provided in subsection (g) 
and section 504, producers who knowingly produce a feed 
grain in excess of the respective permitted feed grain acre-
age for the farm shall be ineligible for feed grain loans, 
purchases, and payments with respect to that farm. 
"(C) CROP ACREAGE BASES.—Feed grain crop acreage bases 
for each crop of feed grains shall be determined under title 
V. 
"(D) 
ACREAGE 
DEVOTED TO 
CONSERVATION USES.—A 
number of acres on the farm shall be devoted to conserva-
tion uses, in accordance with regulations issued by the 
Secretary. Such number shall be determined by multipl5dng 
the respective feed grain crop acresige base by the percent-
age reduction required by the Secretary. The number of 
acres so determined is hereafter in this subsection referred 
to as 'reduced acreage'. The remaining acreage is hereafter 
in this subsection referred to as 'permitted acreage'. Per-
mitted acreage may be adjusted by the Secretary as pro-
vided in paragraph (3) and in section 504. 
"(E) 
INDIVIDUAL FARM PROGRAM ACREAGE.—Except 
as 
otherwise provided in subsection (c), the individual farm 
program acreage shall be the acreage planted on the farm 
to feed grains for harvest within the permitted feed grain 
acreage for the farm as established under this paragraph. 
"(F) PLANTING DESIGNATED CROPS ON REDUCED ACREAGE.— 
"(i) DEFINITION OF DESIGNATED CROP.—As used in this 
subparagraph, the term 'designated crop' means a crop 
defined in section 504(b)(1), excluding any program crop 
as defined in section 502(3). 
"(ii) IN GENERAL.—Subject to clause (iii), the Sec-
retary may permit producers on a farm to plant a 
designated crop on no more than one-half of the re-
duced acreage on the farm. 
"(iii) LIMITATIONS.—If the producers on a farm elect 
to plant a designated crop on reduced acreage under 
this subparagraph— 
"(I) the amount of the deficiency payment that 
the producers are otherwise eligible to receive 
under subsection (c) shall be reduced, for each acre 
(or portion thereof) that is planted to the des-
ignated crop, by an amount equal to the deficiency 
payment that would be made with respect to a 
number of acres of the crop that the Secretary 
considers appropriate, except that if the producers 
on the farm are participating in a program estab-
lished for more than one program crop, the amount 
of the reduction shall be determined Ijy prorating 
the reduction based on the acreage planted or 
considered planted on the farm to all of such pro-
gram crops; and 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3411 
"(11) the Secretary shall ensure that reductions 
in deficiency pajrments under subclause (I) are 
sufficient to ensure that this subparagraph will 
result in no additional cost to the Commodity 
Credit Corporation. 
"(G) EXCEPTION FOR MALTING BARLEY.—The Secretary 
may provide that no producer of malting barley shall be 
required as a condition of eligibility for feed grain loans, 
purchases, and payments to comply with any acreage 
limitation under this paragraph if the producer has pre-
viously produced a malting variety of barley for harvest, 
plants barley only of an acceptable malting variety for 
harvest, and meete such other conditions £is the Secretary 
may prescribe. 
"(3) TARGETED OPTION PAYMENTS.— 
"(A) IN GENERAL.—Notwithstanding any other provision 
of this section, if the Secretary implements an acreage 
limitation program with respect to any of the 1991 through 
1995 crops of feed grains, the Secretary may make available 
to producers on a farm who do not receive pajnnents under 
subsection (cXlXE) for such crop on the farm, adjustments 
in the level of deficiency pajnnents that would otherwise be 
made available to the producers if the producers exercise 
the pajnnent options provided in this paragraph. 
"(B) PAYMENT OPTIONS.—If the Secretary elects to carry 
out this paragraph, the Secretary shall make the payment 
options specified in subparagraphs (C) and (D) available to 
producers who agree to make adjustments in the quantity 
of acreage diverted from the production of feed grains 
under an acreage limitation program in accordance with 
this paragraph. 
"(C) INCREASED ACREAGE UMITATION OPTION.— 
"(i) INCREASE IN ESTABLISHED PRICE.—If the Secretary 
elects to carry out this paragraph, a producer shall be 
eligible to receive an increase in the established price 
for corn under clause (ii) if the producer agrees to an 
increase in the acreage limitation percentage to be 
applied to the producers' corn acreage beise above the 
acreage limitation percentage announced by the Sec-
retary. 
"(ii) METHOD OF CALCULATION.—For the purposes of 
calculating deficiency pajonents to be made available to 
producers who participate in the program under this 
paragraph, the Secretary shall increase the established 
price for com by an amount determined by the Sec-
retary, but not less than 0.5 percent, nor more than 1 
percent, for each 1 percentage point increase in the 
acreage limitation percentage applied to the producers' 
corn acreage base. 
"(iii) LIMITATION.—The acreage limitation percentage 
to be applied to the producers' corn acreage base shall 
not be increased by more than 5 percentage points for 
the 1991 crop and 10 percentage points for each of the 
1992 through 1995 crops above the acreage limitation 
percentage announced by the Secretary for the crop or 
above 20 percent total for the crop. 
"(D) DECREASED ACREAGE UMITATION OPTION.— 
104 STAT. 3412 
PUBLIC LAW 101-624—NOV. 28, 1990 
Regulations. 
"(i) DECREASE IN ACREAGE UMITATION 
REQUIRE-
MENT.—If the Secretary elects to carry out this para-
graph, a producer shall be eligible to decrease the 
acreage limitation percentage applicable to the produc-
ers' com acreage base (as announced by the Secretary) 
if the producer agrees to a decrease in the established 
price for corn under clause (ii) for the purpose of 
calculating deficiency pa3anents to be made available to 
the producer. 
"(ii) METHOD OF CALCULATION.—For the purposes of 
calculating deficiency pajnnents to be made available to 
producers who choose the option set forth in this 
subparagraph, the Secretary shall decrease the estab-
lished price for corn by an amount to be determined by 
the Secretary, but not less thsm 0.5 percent, nor more 
than 1 percent, for each 1 percentage point decrease in 
the acreage limitation percentage applied to the 
producers' com acreage base. 
"(iii) LIMITATION.—A producer may not choose to 
decrease the acreage limitation percentage applicable 
to the producers' corn acreage base under this para-
graph by more than one-half of the announced acresige 
limitation percentage. 
"(E) OTHER FEED GRAINS.—The Secretary shall implement 
the program provided for by this paragraph for other feed 
grains similar to the manner in which the program is 
implemented for corn. 
"(F) PARTICIPATION AND PRODUCTION EFFECTS.—Notwith-
standing any other provision of this paragraph, the Sec-
retary shall, to the extent practicable, ensure that the 
program provided for in this paragraph does not have a 
significant effect on program participation or total produc-
tion and shall be offered in such a manner that the Sec-
retary determines will result in no additional budget out-
lays. The Secretary shall provide an analysis of the Sec-
retary's determination to the Committee on Agriculture of 
the House of Representatives and the Committee on Agri-
culture, Nutrition, and Forestry of the Senate. 
'(4) ADMINISTRATION.— 
"(A) PROTECTION FROM WEEDS AND EROSION.—The regula-
tions issued by the Secretary under paragraph (2) with 
respect to acreage required to be devoted to conservation 
uses shall assure protection of the acreage from weeds and 
wind and water erosion. 
"(B) ANNUAL OR PERENNIAL COVER.— 
"(i) IN GENERAL.—Except as provided in paragraph 
(2), a producer who participates in an acreage reduction 
program established for a crop of feed grains under this 
subsection shall be required to plant to an annual or 
perennial cover 50 percent (or more, at the option of 
the producer) of the acreage that is required to be 
removed from the production of feed grains, but not to 
exceed 5 percent (or more, at the option of the pro-
ducer) of the crop acreage base established for the crop. 
This requirement shall not apply with respect to arid 
areas (including summer fallow areas), as determined 
by the Secretary. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3413 
"(ii) MULTIYEAR PROGRAM.— 
"(I) COST-SHARE ASSISTANCE.—If a producer elects 
to establish a perennial cover capable of improving 
water quality or wildlife habitat on the acreage, 
the Commodity Credit Corporation shall make 
available cost-share assistance for 25 percent of the 
approved cost of establishing the cover on not more 
than 50 percent of the acreage that is required to 
be diverted from production, but not to exceed 5 
percent (or more, at the option of the producer) of 
the crop acreage base established for a crop. 
"(II) AGREEMENT OF PRODUCER.—If a producer 
elects to establish a perennial cover on the acreage 
under this subparagraph and receives cost-share 
assistance from the Corporation with respect to the 
cover, the producer, under such terms £uid condi-
tions as may be prescribed by the Secretary, taking 
into consideration guidelines established by the 
State technical committees established in subtitle 
G of title XII of the Food Security Act of 1985, shall 
agree to maintain the perennial cover for a mini-
mum of 3 years, 
"(iii) (CONSERVING CROPS.—The Secretary may permit, 
subject to such terms and conditions as the Secretary 
may prescribe, all or any part of the acreage to be 
devoted to sweet sorghum, guar, sesame, castor beans, 
crambe, plantago ovato, triticale, rye, mung beans, 
milkweed, or other commodity, if the Secretary deter-
mines that the production is needed to provide an 
adequate supply of the commodities, is not likely to 
increase the cost of the price support program, and will 
not affect farm income adversely. 
"(C) HAYING AND GRAZING.— 
"(i) IN GENERAL.—Except as provided in clause (ii), 
haying and grazing of reduced acreage, acreage devoted 
to a conservation use under subsection (c)(lXE), and 
acreage diverted from production under a land diver-
sion program established under this section shall be 
permitted, except during any consecutive 5-month 
period that is established by the State committee estab-
lished under section 8(b) of the Soil (Conservation and 
Domestic Allotment Act (16 U.S.C. 590h(b)) for a State. 
The 5-month period shall be established during the 
period beginning April 1, and ending October 31, of a 
year. 
"(ii) NATURAL DISASTERS.—In the case of a natural 
disaster, the Secretary may permit unlimited haying 
and grazing on the acreage. The Secretary may not 
exclude irrigated or irrigable acreage not planted in 
alfalfa when exercising the authority under this clause. 
"(D) WATER STORAGE USES.— 
"(i) IN GENERAL.—The regulations issued by the Sec- Regulations. 
retary under paragraph (2) with respect to acreage 
required to be devoted to conservation uses shall pro-
vide that land that has been converted to water storage 
uses shall be considered to be devoted to conservation 
uses if the land was devoted to wheat, feed grains, 
104 STAT. 3414 
PUBLIC LAW 101-624—NOV. 28, 1990 
Cooperative 
agreements. 
cotton, rice, or oilseeds in at least 3 of the immediately 
preceding 5 years. The land shall be considered to be 
devoted to conservation uses for the period that the 
land remains in water storage uses, but not to exceed 5 
years subsequent to its conversion to water storage 
uses. 
"(ii) LIMITATIONS.—Land converted to water storage 
uses for the purposes of this subparagraph may not be 
devoted to any commercial use, including commercial 
fish production. The water stored on the land may not 
be ground water. The farm on which the land is located 
must have been irrigated with ground water during at 
least 1 of the preceding 5 crop years. 
"(E) SUMMER FALLOW.—In determining the quantity of 
land to be devoted to conservation uses under an acresige 
limitation program with respect to land that has been 
farmed under summer fallow practices, as defined by the 
Secretary, the Secretary shall consider the effects of soil 
erosion £uid such other factors as the Secretary considers 
appropriate. 
"(5) LAND DIVERSION PAYMENTS.— 
"(A) IN GENERAL.—The Secretary may make land diver-
sion pa3mients to producers of feed grains, whether or not 
an acreage limitation program for feed grains is in effect, if 
the Secretary determines that the land diversion payments 
are necessary to assist in adjusting the total national acre-
age of feed grains to desirable goals. The land diversion 
pa5ntnents shall be made to producers who, to the extent 
prescribed by the Secretary, devote to approved conserva-
tion uses an acreage of cropland on the farm in accordance 
with land diversion contracts entered into by the Secretary 
with the producers. 
"(B) AMOUNTS.—The amounts payable to producers under 
land diversion contracts may be determined through the 
submission of bids for the contracts by producers in such 
manner as the Secretary may prescribe or through such 
other means as the Secretary determines appropriate. In 
determining the acceptability of contract offers, the Sec-
retary shall take into consideration the extent of the diver-
sion to be undertaken by the producers and the productivity 
of the acreage diverted. 
"(C) LIMITATION ON DIVERTED ACREAGE.—The Secretary 
shall limit the total acreage to be diverted under sigree-
ments in any county or local community so as not to ^fect 
adversely the economy of the county or local community. 
"(6) CONSERVATION PRACTICES.— 
"(A) WILDUFE FOOD PLOTS OR HABITAT.—The reduced acre-
age and additional diverted acreage may be devoted to 
wildlife food plots or wildlife habitat in conformity with 
standards established by the Secretary in consultation with 
wildlife agencies. The Secretary may pay an appropriate 
share of the cost of practices designed to carry out the 
purposes of this subparagraph. 
"(B) SOIL AND WATER CONSERVATION PRACTICES.—The Sec-
retary may also pay an appropriate share of the cost of 
approved soil and water conservation practices (including 
practices that may be effective for a number of years) 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3415 
established by the producer on acreage required to be de-
voted to conservation uses or on additional diverted acre-
age. 
"(C) PuBUC ACCESSIBILITY.—The Secretary may provide 
for an additional pa}n3ient on the acreage in an amount 
determined by the Secretary to be appropriate in relation to 
the benefit to the general public if the producer agrees to 
permit, without other compensation, access to all or such 
portion of the farm, as the Secretary may prescribe, by the 
genersd public, for hunting, trapping, fishing, and hiking, 
subject to applicable State and Federal regulations. 
"(7) PARTICIPATION AGREEMENTS.— 
"(A) IN GENERAL.—Producers on a farm desiring to 
participate in the program conducted under this subsection 
shall execute an agreement with the Secretary providing 
for the participation not later than such date as the Sec-
retary may prescribe. 
"(B) MODIFICATION OR TERMINATION.—The Secretary may, 
by mutual agreement with producers on a farm, modify or 
terminate any such agreement if the Secretary determines 
the action necessary because of an emergency created by 
drought or other disaster or to prevent or alleviate a short-
age in the supply of agricultural commodities. The Sec-
retary may modify the Eigreement under this subparagraph 
for the purpose of alleviating a shortage in the supply of 
agricultural commodities only if there has been a signifi-
cant change in the estimated stocks of the commodity since 
the Secretary announced the fined terms and conditions of 
the program for the crop of feed grains. 
"(8) SPECIAL OATS PLANTINGS.—In any crop year that the 
Secretary determines that projected domestic production of oats 
will not fulfill the projected domestic demand for oats, notwith-
standing the foregoing provisions of this subsection, the Sec-
retary— 
"(A) may provide that any reduced acreage may be 
planted to oate for harvest; 
"(B) may make program benefits (including loans, pur-
chases, and pajmients) available under the annual program 
for oats under this section available to producers with 
respect to acreage planted to oats under this paragraph; 
and 
"(C) shall not make program benefits other than the 
benefits specified in subparagraph (B) available to produc-
ers with respect to acreage planted to oats under this 
paragraph. 
*(f) INVENTORY REDUCTION PAYMENTS.— 
"(1) IN GENERAL.—The Secretary may, for each of the 1991 
through 1995 crops of feed grains, make payments available to 
producers who meet the requirements of this subsection. 
"(2) FORM.—The pajonents may be made in the form of 
marketing certificates. 
"(3) PAYMENTS.—Payments under this subsection shall be 
determined in the same manner as provided in subsection (b). 
"(4) EuGiBiLTTY.—A producer shall be eligible to receive a 
pajonent under this subsection for a crop if the producer— 
"(A) agrees to forgo obtaining a loan or purchase agree-
ment under subsection (a); 
104 STAT. 3416 
PUBLIC LAW 101-624—NOV. 28, 1990 
Cooperative 
agreements. 
"(B) agrees to forgo receiving pa3anents under subsection 
(0; 
"(C) does not plant feed grains for harvest in excess of the 
crop acreage base reduced by one-half of any acreage re-
quired to be diverted from production under subsection (e); 
and 
"(D) otherwise complies with this section. 
"(g) PILOT VOLUNTARY PRODUCTION LIMITATION PROGRAM.— 
"(1) IN GENERAL.—Effective for the 1992 or 1993 crops (and, if 
the Secretary so determines, the 1994 and 1995 crops), if a feed 
grain acreage limitation program or a land diversion program is 
announced under subsection (d) for such crops, the Secretary 
shall carry out a pilot program in at least 15 counties in at least 
2 States where producers express an interest in participating in 
the pilot program under which the producers on a farm shall be 
considered to have met the requirements of such acreage limita-
tion or land diversion program if the producers meet the 
requirements of the voluntary production limitation program 
established under this subsection. 
"(2) LIMITATION ON MARKETING.—In order to comply with the 
voluntary production limitation program, the producers on a 
farm must agree not to market, barter, donate, or use on the 
farm (including use as feed for livestock) in a marketing year a 
quantity of feed grains in excess of the feed grain production 
limitation quantity for the farm for the marketing year. 
"(3) PRODUCTION UMITATION QUANTITY.—For purposes of this 
subsection, the production limitation quantity for a farm for a 
marketing year for a crop shall equal the product obtained by 
multipljdng— 
"(A) the acreage permitted to be planted to feed grains 
under the acreage reduction program or land diversion 
program in effect for the crop for the farm; by 
"(B) the higher of— 
"(i) the farm program payment yield for the farm; or 
"(ii) the average of the jdeld per harvested acre for 
feed grains for the farm for each of the 5 crop years 
immediately preceding the crop year during which the 
producers first participate in the program established 
under this subsection, excluding the crop years with 
the highest and lowest jdeld per harvested acre and 
any crop year in which the commodity was not planted 
on the farm. 
"(4) TERMS AND CONDITIONS.—Producers on a farm who elect 
to participate in the program established under this subsection 
for a crop of feed grains shall— 
"(A) enter into an agreement with the Secretary provid-
ing that the producers shall comply with the program for 
the crop; 
"(B) not plant program commodities for harvest in a 
quantity in excess of the sum of the crop acreage bases for 
the farm; and 
"(C) be considered to have complied with the terms and 
conditions of the feed grain acreage reduction program or 
land diversion program for the crop, even though the acre-
age planted to feed grains on the farm exceeds the per-
mitted acreage provided under the acreage reduction or 
land diversion program. 
f4il%.^ 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3417 
"(5) E^XCESS PRODUCTION.— 
"(A) IN GENERAL.—Any quantity of feed grains produced 
in a crop year on a farm in excess of the production 
limitation quantity for the farm may be stored by the 
producers for a period of not to exceed 5 marketing years 
and may be used only in accordance with this paragraph. 
"(B) M A R K E T I N G IN SUBSEQUENT YEAR.— 
"(i) PARTICIPANTS IN PROGRAM.—Producers on a farm 
who are participating in the program established under 
this subsection may market, barter, or use a quantity of 
the excess feed grains referred to in subparagraph (A) ^ 
equal to the difference between the production limita-
tion quantity for the farm for the crop year subsequent 
to the crop year in which the excess feed grains are 
produced less the quantity of feed grains produced on 
the farm during the crop year. 
"(ii) 
PARTICIPANTS 
IN 
ACREAGE 
REDUCTION 
PRO-
GRAM.—Producers on a farm who are participating in 
an acreage reduction or a land diversion program for a 
crop of feed grains may market, barter, or use a quan-
tity of the excess feed grains referred to in subpara-
graph (A) in an amount that reflects the quantity of 
feed grains that would be expected to be produced on 
acreage that the producers agree to devote to approved 
conservation uses (in excess of any acreage reduction or 
land diversion requirements) during a crop year, £is 
determined by the Secretary. 
"(6) DUTIES OF SECRETARY.—In carrying out the pilot program 
established under this suteection, the Secretary— 
"(A) shall issue such regulations as are necessary to carry Regulations. 
out the program; 
"(B) may require increased acreage reduction or land 
diversion requirements with respect to producers who have 
had excess feed grain production in order to allow the 
producers to market, barter, or use the production in subse-
quent years; 
"(C) shall take appropriate measures designed to prevent 
the circumvention of the program established under this 
subsection, including the imposition of penalties; 
"(D) may require producers who participate in the pro-
gram for a crop, but who fail to comply with the terms and 
conditions of the program, to refund all or a part of any 
deficiency pa)mients received with respect to the crop; 
"(E) may require the forfeiture to the Commodity Credit 
(Corporation of any feed grains that is produced in excess of 
the production limitation quantity and that is not mar-
keted, bartered, or used within 5 marketing years; and 
"(F) shall ensure equitable treatment for producers who 
participate in the pilot program if the Secretary allows 
increases (based on actual production levels) in the deter-
mination of farm program payment yields for feed grains 
for the farm. 
"(7) REPORT.— 
"(A) IN GENERAL.—The Comptroller (jreneral of the 
United States shall prepare a report that evaluates the 
pilot program carried out under this subsection. 
104 STAT. 3418 
PUBLIC LAW 101-624—NOV. 28, 1990 
"(B) SUBMISSION.—The Comptroller General shall submit 
a copy of the report required by subparagraph (A) to the 
Committee on Agriculture of the House of Representatives, 
the Committee on Agriculture, Nutrition, and Forestry of 
the Senate, and the Secretary. 
"(h) EQUITABLE REUEF.— 
"(1) LOANS, PURCHASES, AND PAYMENTS.—If the failure of a 
producer to comply fully with the terms and conditions of the 
program conducted under this section precludes the making of 
loans, purchases, and pa3nnents, the Secretary may, neverthe-
less, make such loans, purchases, and pa3miente in such 
amounts as the Secretary determines are equitable in relation 
to the seriousness of the failure. The Secretary may consider 
whether the producer made a good faith effort to comply fully 
with the terms and conditions of such program in determining 
whether equitable relief is warranted under this paragraph. 
"(2) DEADUNES AND PROGRAM REQUIREMENTS.—The Secretary 
may authorize the county and State committees established 
under section 8(b) of the Soil (Conservation and Domestic Allot-
ment Act (16 U.S.C. 590h(b)) to waive or modify deadlines and 
other program requirements in cases in which lateness or fsdl-
ure to meet such other requirements does not affect adversely 
the operation of the program. 
"(i) REGULATIONS.—The Secretary may issue such regulations as 
the Secretary determines necessary to carry out this section. 
"(j) COMMODITY CREDIT CORPORATION.—The Secretary shall carry 
out the program authorized by this section through the Commodity 
Credit Ciorporation. 
"(k) ASSIGNMENT OF PAYMENTS.—The provisions of section 8(g) of 
the Soil Conservation and Domestic Allotment Act (16 U.S.C. 
590h(g)) (relating to sissignment of pa3mients) shall apply to pay-
ments under this section. 
"(1) SHARING OF PAYMENTS.—The Secretary shall provide for the 
sharing of pajnnents made under this section for any farm among 
the producers on the farm on a fair and equitable basis. 
"(m) TENANTS AND SHARECROPPERS.—The Secretary shall provide 
adequate safeguards to protect the interests of tenants and share-
croppers, 
"(n) CROSS-COMPLIANCE.— 
"(1) IN GENERAL.—C!ompliance on a farm with the terms and 
conditions of any other commodity program, or compliance with 
crop acreage base requirements for any other commodity, may 
not be required as a condition of eligibility for loans, purchases, 
or pajonents under this section. 
"(2) COMPLIANCE ON OTHER FARMS.—The Secretary may not 
require producers on a farm, as a condition of eligibility for 
loans, purchases, or pa3anents under this section for the farm, to 
comply with the terms and conditions of the feed grains pro-
gram with respect to any other farm operated by the producers. 
"(o) PUBLIC COMMENT ON FEED GRAINS PROGRAM.— 
"(1) IN GENERAL.—In order to ensure that producers and 
consumers of feed grains are provided with reasonable oppor-
tunity to comment on the annual program determinations 
concerning the price support and acreage reduction program for 
each of the 1992 and subsequent crops of feed grains, the 
Secretary shall request public comment regarding the feed 
grains program in accordance with this subsection. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3419 
"(2) OPTIONS.—Not less than 60 days before the program is 
announced for a crop of feed grains under this section, the 
Secretary shall propose for public comment various program 
options for the crop of feed grains. 
"(3) ANALYSES.—Each option proposed by the Secretary shall 
be accompanied by an Einalysis that includes the estimated 
planted acreage, production, domestic and export use, ending 
stocks, season average producer price, program participation 
rate, and cost to the Federal Government that would likely 
result from each option. 
"(4) ESTIMATES.—In announcing the program for a crop of feed 
grains under this section, the Secretary shall include an esti-
mate of the planted acreage, production, domestic and export 
use, ending stocks, season average producer price, program 
participation rate, and cost to the Federal Government that is 
expected to result from the program as announced. 
"(p) MALTING BARLEY.—In order to help offset costs Eissociated 
with deficiency payments made available under this section to 
producers of barley, the Secretary shall provide for an assessment 
for each of the 1991 through 1995 crop years to be levied on 
producers of malting barley that are participating in the production 
adjustment program under this section. The Secretary shall estab-
lish such assessment at no more than 5 percent of the value of 
malting barley produced on the farm during each of the 1991 
through 1995 crop years. 
"(q) CROPS.—Notwithstanding any other provision of law, this 
section shall be effective only for the 1991 through 1995 crops of feed 
grains.". 
SEC. 402. NONAPPLICABILITY OF SECTION 105 OF THE AGRICULTURAL 
ACT OF 1949 TO THE 1991 THROUGH 1995 CROPS OF FEED 
GRAINS. 
Section 105 of the Agricultural Act of 1949 (7 U.S.C. 1444b) shall 
not be applicable to the 1991 through 1995 crops of feed grains. 
SEC. 403. RECOURSE LOAN PROGRAM FOR SILAGE. 
Section 403 of the Food Security Act of 1985 (7 U.S.C. 1444e-l) is 
amended by striking "1990" and inserting "1996". 
SEC. 404. PRICE SUPPORT FOR HIGH MOISTURE FEED GRAINS. 
(a) RECOURSE LOANS.—Notwithstanding any other provision of 
law, effective for each of the 1991 through 1995 crops of feed grains, 
the Secretary of Agriculture shall make available recourse loans as 
determined by the Secretary, as provided in this section, to produc-
ers on a farm who— 
(1) normally harvest all or a portion of their crop of feed 
grains in a high moisture state (hereafter defined as a feed 
grain having a moisture content in excess of Commodity Credit 
Corporation standards for loans made by the Secretary under 
paragraphs (1) and (6) of section 105B of the Agricultural Act of 
1949 (as added by section 401 of this Act); 
(2)(A) present certified scale tickets from an inspected, cer-
tified commercial scale, including licensed warehouses, feedlots, 
feed mills, distilleries, or other similar entities approved by the 
Secretary, pursuant to regulations issued by the Secretary; or 
(B) present field or other physical measurements of the stand-
ing or stored feed grain crop in regions of the country, as 
7 use 1444b 
note. 
7 use 1444f-l. 
39-194 O - 91 - 4 : QL 3 Part 5 
104 STAT. 3420 
PUBLIC LAW 101-624—NOV. 28, 1990 
determined by the Secretary, that do not have certified commer-
cial scsdes from which certified scale tickets may be obtained 
within reasonable proximity of harvest operation; 
(3) certify that they were the owners of the feed grain at the 
time of delivery to, and that the quantity to be placed under 
loan was in fact harvested on the farm and delivered to, a 
feedlot, feed mill, or commercial or on-farm high-moisture stor-
age facility, or to such facilities maintained by the users of such 
high-moisture feed grain; 
(4) comply with deadlines established by the Secretary for 
harvesting the feed grain and submit applications for loans 
within deadlines established by the Secretary; and 
(5) participate in an acreage limitation program for the crop 
of feed grains established by the Secretary. 
(b) EuGiBiLTTY OF ACQUIRED FEED GRAINS.—The loans shall be 
made on a quantity of feed grains of the same crop acquired by the 
producer equivalent to a quantity determined by multipljdng— 
(1) the acreage of the feed grain in a high moisture state 
harvested on the producer's farm; by 
(2) the lower of the farm program payment )deld or the actual 
3deld on a field, as determined by the Secretary, that is similar 
to the field from which such high moisture feed grain was 
obtained. 
7 u s e 1445J 
SEC. 405. CALCULATION OF REFUNDS OF ADVANCE ESTABLISHED PRICE 
note. 
PAYMENTS BY PRODUCERS OF THE 1988 OR 1989 CROPS OF 
FEED BARLEY. 
(a) MANDATORY CALCULATION OF REFUND.— 
.(1) IN GENERAL.—Not later than 90 days after the date of 
enactment of this Act, the Secretary of Agriculture shall cal-
culate, for informational purposes only (except as provided in 
the discretionary authority under subsection (b)), the amount of 
the refund of any advance deficiency pajmaent a producer of 
barley who participated in the 1988 or 1989 Federal barley price 
support program would be required to make pursuant to section 
107C of the Agricultural Act of 1949 (7 U.S.C. 1445b-2) (as it 
existed immediately before the date of enactment of this Act) 
based on a formula which excludes malting barley from the 
market price calculations of barley used to determine the 
amount of refund of the advance deficiency pajmaent required of 
the producer. 
(2) DISCLOSURE.— 
Federal 
(A) To THE PUBLIC.—The Secretary shall publish in the 
Regifter, 
Federal Register— 
publication. 
(J) ^jjg formula used to perform the calculations de-
scribed in paragraph (1); 
(ii) the aggregate results that the use of the calcula-
tion would have pursuant to subsection (b), in terms 
of— 
(I) the total reduction in the amount of refunds; 
(II) the number of producers affected; and 
(III) any other information the Secretary deter-
mines appropriate; 
(iii) a declaration of the Secretary's decision whether 
to use the calculation to recalculate barley producer's 
refunds pursuant to subsection (b); and 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3421 
(iv) a statement of the Secretary's reeisons for the 
decision described in clause (iii). 
(B) To PRODUCERS.—The Secretary shall make available 
to each producer of 1988 or 1989 crop barley, on request, a 
statement detailing the effect of the calculation of refunds 
described in paragraph (1) on the producer's 1988 or 1989 
refund, 
(b) DISCRETIONARY USE OF CALCULATION.— 
(1) IN GENERAL.—The Secretary may use the calculation de-
scribed in subsection (a) to determine whether or not to reduce 
the total refund owed by a producer of 1988 or 1989 crop barley 
under section 107C of the Agricultural Act of 1949 (as it existed 
immediately before the date of enactment of this Act). 
(2) PROCEDURE FOR USE OF CALCULATION.—If the Secretary 
decides to use the calculation described in subsection (a) as 
provided under paragraph (1), in the case of a producer of 1988 
or 1989 crop barley who paid the refund of the advance defi-
ciency pajnnent for the crop calculated prior to the date of 
enactment of this Act (or any amount of refund in excess of the 
gimount of the refund determined in accordance with paragraph 
(D), the Secretary— 
(i) shall, before May 31, 1991, reimburse the producer the 
amount of refund paid by the producer in excess of the 
refund determined in accordance with this section; 
(ii) shall have the option to make the reimbursement in a 
lump sum or in installments; 
(iii) shall, not later than 90 days after the date of enact-
ment of this Act, notify producers who are eligible to 
receive the reimbursement of their 1988 or 1989 advance 
deficiency pajnnent refund under this section— 
(I) of the timing of the payment of the reimburse-
ment (either in lump sum or in installments); 
(II) that the amount of the reimbursement shall not 
bear interest if paid before February 15, 1991; and 
(III) that the amount of the reimbursement paid after 
February 15, 1991, shall bear interest at a rate of at 
least 7 percent per annum; and 
(iv) may elect to pay the reimbursement in a lump sum 
with generic certificates redeemable for commodities owned 
by the Commodity Credit Corporation if the reimbursement 
is paid in full not later than 60 days after the date of 
enactment of this Act. 
TITLE V—COTTON 
SEC. 
5
0
1
. 
LOANS, 
PAYMENTS, 
AND 
ACREAGE 
REDUCTION 
PROGRAMS 
FOR 
THE 
1
9
9
1 
THROUGH 
1
9
9
5 
CROPS 
OF 
UPLAND 
COTTON. 
The Agricultural Act of 1949 is amended by inserting after section 
103A (7 U.S.C. 1444-1) the following new section: 
"SEC. 
1
0
3
B
. 
LOANS, 
PAYMENTS, AND ACREAGE 
REDUCTION 
PROGRAMS 7 
USC 
1
4
4
4
-
2
. 
FOR 
THE 1
9
9
1 
THROUGH 1
9
9
5 CROPS 
OF 
UPLAND 
COTTON. 
"(a) LOANS.— 
"(1) IN GENERAL.—Except as otherwise provided in this 
subsection, the Secretary shall, on presentation of warehouse 
receipts or other acceptable evidence of title, as determined by 
104 STAT. 3422 
PUBLIC LAW 101-624—NOV. 28, 1990 
the Secretary, reflecting accrued storage charges of not more 
than 60 days, make available for the 1991 through 1995 crops of 
upland cotton to producers on a farm nonrecourse loans for 
upland cotton produced on the farm for a term of 10 months 
from the first day of the month in which the loan is made at 
such loan level, per pound, as will reflect for the base quality of 
upland cotton, as determined by the Secretary, at average 
location in the United States a level that is not less than the 
smaller of— 
"(A) 85 percent of the average price (weighted by market 
and month) of the base quality of cotton as quoted in the 
designated United States spot markets during 3 years of the 
5-year period ending July 31 in the year in which the loan 
level is announced, excluding the year in which the average 
price was the highest and the year in which the average 
price was the lowest in the period; or 
"(B) 90 percent of the average, for the 15-week period 
beginning July 1 of the year in which the loan level is 
announced, of the 5 lowest-priced growths of the growths 
quoted for Middling one and three-thirty-seconds inch 
cotton C.LF. Northern Europe (adjusted downward by the 
average difference during the period April 15 through Octo-
ber 15 of the year in which the loan is announced between 
the average Northern European price quotation of such 
quality of cotton and the market quotations in the des-
ignated United States spot markets for the base quality of 
upland cotton, as determined by the Secretary. 
"(2) ADJUSTMENTS TO LOAN LEVEL.— 
"(A) LIMITATION ON DECREASE IN LOAN LEVEL.—The loan 
level for any crop determined under paragraph (1) may not 
be reduced by more than 5 percent from the level deter-
mined for the preceding crop, and may not be reduced 
below 50 cents per pound. 
"(B) LIMITATION ON INCREASE IN LOAN LEVEL.—If for 
any 
crop the average Northern European price determined 
under paragraph (IXB) is less than the average United 
States spot market price determined under paragraph 
(IXA), the Secretary may increase the loan level to such 
level as the Secretary may consider appropriate, not in 
excess of the average United States spot market price 
determined under paragraph (IXA). 
"(3) ANNOUNCEMENT OF LOAN LEVEL.—The loan level for any 
crop of upland cotton shall be determined and announced by the 
Secretary not later than November 1 of the calendar year 
preceding the marketing year for which the loan is to be 
effective or, in the case of the 1991 crop, as soon as is practicable 
after the date of enactment of this Act. The loan level shall not 
thereafter be changed. 
"(4) EXTENSION OF LOAN PERIOD.— 
"(A) IN GENERAL.—Except as provided in subparagraph 
(B), nonrecourse loans provided for in this section shall, on 
request of the producer during the 10th month of the loan 
period for the cotton, be made available for an additional 
term of 8 months. 
"(B) LIMITATION.—A request to extend the loan period 
shall not be approved in any month in which the average 
price of the base quality of upland cotton, as determined by 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3423 
the Secretary, in the designated spot markets for the 
preceding month exceeded 130 percent of the average price 
of such base quality of cotton in the designated United 
States spot markets for the preceding 36-month period. 
"(5) MARKETING LOAN PROVISIONS.— 
"(A) IN GENERAL.—If the Secretary determines that the 
prevailing world market price for upland cotton (adjusted 
to United States quality and location) is below the loan 
level determined under the foregoing provisions of this 
subsection, in order to make United States upland cotton 
competitive in world markets, the Secretary shall permit a 
producer to repay a loan made for any crop at— 
"(i) a level that is the lesser o
f
— 
"(I) the loan level determined for the crop; or 
"(11) the higher of— 
"(aa) the loan level determined for the crop 
multiplied by 70 percent; or 
"(bb) the prevailing world market price for 
upland cotton (adjusted to United States qual-
ity and location), as determined by the Sec-
retary; or 
"(ii) such other level (not in excess of the loan level 
determined for the crop nor less than 70 percent of 
such loan level) that the Secretary determines will— 
"(I) minimize potential loan forfeitures; 
"(II) minimize the accumulation of cotton stocks 
by the Federal Government; 
"(III) minimize the cost incurred by the Federal 
Government in storing cotton; and 
"(IV) allow cotton produced in the United States 
to be marketed freely and competitively, both 
domestically and internationally. 
"(B) FIRST HANDLER MARKETING CERTIFICATES.— 
"(i) IN GENERAL.—During the period beginning 
August 1, 1991, and ending July 31, 1996, if a program 
carried out under subparagraph (A) or subsection (b) 
fails to m£tke United Stetes upland cotton fully 
competitive in world markets and the prevailing world 
market price of upland cotton (adjusted to United 
States quality and location), as determined by the Sec-
retary, is below the current loan repayment rate for 
upland cotton determined under subparagraph (A), to 
make United States upland cotton competitive in world 
markets and to maintain 
and expand 
domestic 
consumption and exports of upland cotton produced in 
the United States, the Secretary shall provide for the 
issuance of marketing certificates in accordance with 
this subparagraph. 
"(ii) PAYMENTS.—The Ck)mmodity Credit Corporation, 
under such regulations as the Secretary may prescribe, 
shall make pajnnents, through the issuance of market-
ing certificate, to first handlers of cotton (persons 
regularly engaged in bujdng or selling upland cotton) 
who have entered into an agreement with the (Dommod-
ity Credit Corporation to participate in the prc^am 
established under this subparagraph. The pa3rments 
shall be made in such monetary simounts and subject to 
104 STAT. 3424 
PUBLIC LAW 101-624—NOV. 28, 1990 
Regulations. 
such terms and conditions as the Secretary determines 
will make upland cotton produced in the United States 
available at competitive prices, consistent with the pur-
poses of this subparagraph. 
"(iii) VALUE.—The value of each certificate issued 
under clause (ii) shall be based on the difference be-
tween— 
"(I) the loan repa3anent rate for upland cotton; 
and 
"(II) the prevailing world market price of upland 
cotton (adjusted to United States quality and loca-
tion), as determined by the Secretary. 
"(iv) REDEMPTION, MARKETING, OR EXCHANGE.—The 
Commodity Credit Corporation, under regulations pre-
scribed by the Secretary, may assist any person receiv-
ing marketing certificates under this subparagraph in 
the redemption of certificates for cash, or marketing or 
exchange of the certificates for agricultural commod-
ities or products owned by the Commodity Credit Cor-
poration, at such times, in such manner, and at such 
price levels as the Secretary determines will best effec-
tuate the purposes of the program established under 
this subparagraph. Any price restrictions that may 
otherwise apply to the disposition of agricultural 
commodities by the Commodity Credit Corporation 
shall not apply to the redemption of certificates under 
this subparagraph. 
"(v) DESIGNATION OF COMMODITIES AND PRODUCTS; 
CHARGES.—Insofar as practicable, the Secretary shall 
permit owners of certificates to designate the commod-
ities and the products thereof, including storage sites 
thereof, the owners would prefer to receive in exchange 
for certificates. If any certificate is not presented for 
redemption, marketing, or exchange within a reason-
able number of days after the issuance of the certificate 
(as determined by the Secretary), reasonable costs of 
storage and other carrying charges, as determined by 
the Secretary, shall be deducted from the value of the 
certificate for the period beginning after the reasonable 
number of days and ending with the date of the presen-
tation of the certificate to the Commodity Credit Cor-
poration. 
"(vi) DISPLACEMENT.—The Secretary shall take such 
measures as may be necessary to prevent the market-
ing or exchange of agricultural commodities and prod-
ucts for certificates under this subsection from ad-
versely affecting the income of producers of the 
commodities or products. 
"(vii) TRANSFERS.—Under regulations prescribed by 
the Secretary, certificates issued to cotton handlers 
under this subparagraph may be transferred to other 
handlers and persons approved by the Secretary. 
"(C) PREVAIUNG WORLD MARKET PRICE.— 
"(i) IN GENERAL.—The Secretary shall prescribe by 
regulation— 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3425 
"(I) a formula to define the prevailing world 
market price for upland cotton (adjusted to United 
States quality and location); and 
"(11) a mechanism by which the Secretary shall 
announce periodically the prevailing world market 
price for upland cotton (adjusted to United States 
quality and location), 
"(ii) USE.—The prevailing world market price for 
upland cotton (adjusted to United States quality and 
location) established under this subparagraph shall be 
used under subparagraphs (A) and (B). 
'(D) ADJUSTMENT OF PREVAIUNG WORLD MARKET PRICE.— Northern 
"(i) IN GENERAL.—During the period beginning Europe. 
August 1,1991, and ending July 31,1996, the prevailing 
world market price for upland cotton (adjusted to 
United States quality and location) established under 
subparagraph (C) shall be further adjusted if— 
"(I) the adjusted prevailing world market price is 
less than 115 percent of the current crop year loan 
level for the base quality of upland cotton, as 
determined by the Secretary; and 
"(II) the Friday through Thursday average price 
quotation for the lowest-priced United States 
growth as quoted for Middling (M) one and three-
thirty seconds inch cotton delivered C.I.F. North-
ern Europe is greater than the Friday through 
Thursday average price of the five lowest-priced 
growths of upland cotton, as quoted for Middling 
(M) one and three-thirty seconds inch cotton, deliv-
ered C.I.F. Northern Europe (hereafter in this 
subsection referred to as the 'Northern Europe 
price'). 
"(ii) FURTHER ADJUSTMENT.—Except as provided in 
clause (iii), the adjusted prevailing world market price 
shall be further adjusted on the basis of some or all of 
the following data, as available: 
"(I) The United States share of world exports. 
"(II) The current level of cotton export sales and 
cotton export shipments. 
"(Ill) Other data determined by the Secretary to 
be relevant in establishing an accurate prevailing 
world market price for upland cotton (adjusted to 
United States quality and location), 
"(iii) LIMITATION ON FURTHER ADJUSTMENT.—The 
adjustment under clause (ii) may not exceed the dif-
ference between— 
"(I) the Friday through Thursday average price 
for the lowest-priced United States growth as 
quoted for Middling one and three-thirty seconds 
inch cotton delivered C.I.F. Northern Europe; and 
"(II) the Northern Europe price. 
'(E) COTTON USER MARKETING CERTIFICATES.— 
Northern 
"(i) ISSUANCE.—During the period beginning August Europe. 
1, 1991, and ending July 31, 1996, if for any consecutive 
4-week period, the Friday through Thursday average 
price quotation for the lowest-priced United States 
growth, as quoted for Middling (M) one and three-thirty 
104 STAT. 3426 
PUBLIC LAW 101-624—NOV. 28, 1990 
President. 
Northern 
Europe. 
seconds inch cotton, delivered C.LF. Northern Europe 
exceeds the Northern Europe price by more than 1.25 
cents per pound, the Secretary shall issue marketing 
certificates to domestic users or exporters for docu-
mented sales made in the week following such consecu-
tive 4-week period. 
"(ii) VALUE.—The value of the marketing certificates 
shall be based on the amount of the difference (reduced 
by 1.25 cents per pound) in such prices during the 4th 
week of the consecutive 4-week period multiplied by 
the quantity of upland cotton included in the docu-
mented sales. 
"(iii) ADMINISTRATION.—Clauses (iv) through (vii) of 
subparagraph (B) shall apply to marketing certificates 
issued under this subparagraph. Any such certificates 
may be transferred to other persons in accordance with 
regulations issued by the Secretary. 
"(F) SPECIAL IMPORT QUOTA.— 
"(i) EsTABUSHMENT.—The President shall, within 180 
days after the date of enactment of this section, estab-
lish an import quota program which shall provide that, 
during the period beginning August 1991 and ending 
July 31, 1996, whenever the Secretary determines and 
announces that for any consecutive 10-week period, the 
Friday through Thursday average price quotation for 
the lowest-priced United States growth, as quoted for 
Middling (M) one and three-thirty seconds inch cotton, 
delivered C.LF. Northern Europe, adjusted for the 
value of any certificates issued under subparagraph (E), 
exceeds the Northern Europe price by more than 1.25 
cents per pound, there shall immediately be in effect a 
special limited global import quota. 
"(ii) QUANTITY.—The quota shall be equal to 1 week's 
consumption of upland cotton by domestic mills at the 
seasonally adjusted average rate of the most recent 3 
months for which data are aveiilable, 
"(iii) APPUCATION.—The quota shall apply to upland 
cotton purchased not later than 90 days after the date 
of the Secretary's announcement under clause (i) and 
entered into the United States not later than 180 days 
after such date. 
"(iv) OVERLAP.—A special quota period may be estab-
lished that overlaps any existing quota period if re-
quired by clause (i), except that a special quota period 
may not be established under this parsigraph if a spe-
cial quota period has been established under subsection 
(n). 
"(6) RECOURSE LOANS FOR SEED COTTON.—In order to encourage 
and assist producers in the orderly ginning and marketing of 
their production of upland cotton, the Secretary shall make 
recourse loans available to such producers on seed cotton in 
accordance with authority vested in the Secretary under the 
Commodity Credit Corporation Charter Act (15 U.S.C. 714 et 
seq.). 
'(b) LOAN DEFICIENCY PAYMENTS.— 
"(1) IN GENERAL.—The Secretory shall, for each of the 1991 
through 1995 crops of upland cotton, make payments (hereafter 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3427 
in this section referred to as 'loan deficiency payments') avail-
able to producers who, although eligible to obtain a loan under 
subsection (a), agree to forgo obtaining the loan in return for 
payments under this subsection. 
(2) COMPUTATION.—A pajonent under this subsection shall be 
computed by multiplying— 
"(A) the loan pajnnent rate; by 
"(B) the quantity of upland cotton the producer is eligible 
to place under loan but for which the producer forgoes 
obtaining the loan in return for pajrments under this 
subsection. 
"(3) LOAN PAYMENT RATE.—For purposes of this subsection, 
the loan pajmient rate shall be the amount by which— 
"(A) the loan level determined for the crop under subsec-
tion (a); exceeds 
"(B) the level at which a loan may be repaid under 
subsection (a). 
"(4) MARKETING CERTIFICATES.—The Secretary may make up 
to one-half the amount of a pa3nnent under this subsection 
available in the form of marketing certificates, subject to the 
terms and conditions provided in subsection (aXSXB). 
'(c) PAYMENTS.— 
"(1) DEFICIENCY PAYMENTS.— 
"(A) IN GENERAL.—The Secretary shall make available to 
producers pajonents (hereafter in this section referred to as 
deficiency pajnnents') for each of the 1991 through 1995 
crops of upland cotton in an amount computed by multiply-
ing— 
"(i) the payment rate; by 
"(ii) the payment acres for the crop; by 
"(iii) the farm program payment jrield established for 
the crop for the farm. 
"(B) PAYMENT RATE.— 
"(i) IN GENERAL.—The payment rate for upland 
cotton shall be the amount by which the established 
price for the crop of upland cotton exceeds the higher 
of— 
"(I) the national average market price received 
by producers during the calendar year that in-
cludes the first 5 months of the marketing year for 
the crop, as determined by the Secretary; or 
"(II) the loan level determined for the crop. 
"(ii) MINIMUM ESTABUSHED PRICE.—The established 
price for upland cotton shall not be less thein $0,729 per 
pound for each of the 1991 through 1995 crops. 
"(C) PAYMENT ACRES.—Payment acres for a crop shall be 
the lesser of— 
"(i) the number of acres planted to the crop for 
harvest within the permitted acreage; or 
"(ii) 100 percent of the crop acreage base for the crop 
for the farm less the quantity of reduced acreage (as 
determined under subsection (eX2XD)). 
"(D) 50/92 PROGRAM.— 
Conservation. 
"(i) IN GENERAL.—If an acreage limitation program 
under subsection (eX2) is in effect for a crop of upland 
cotton and the producers on a farm devote a portion of 
the maximum pa3mient acres for upland cotton as cal-
104 STAT. 3428 
PUBLIC LAW 101-624—NOV. 28, 1990 
culated under subparagraph (CXii) of the farm equal to 
more than 8 percent of such upland cotton acreage of 
the farm for the crop to conservation uses (except as 
provided in subparagraph (E))— 
"(I) such portion of the maximum payment acres 
in excess of 8 percent of such acreage devoted to 
conservation uses (except as provided in subpara-
graph (E)) shall be considered to be planted to 
upland cotton for the purpose of determining the 
acreage on the farm required to be devoted to 
conservation uses in accordance with subsection 
(eX2XD); and 
"(11) the producers shall be eligible for pajonents 
under this paragraph with respect to such acreage, 
subject to the compliance of the producers with 
clause (ii). 
"(ii) MINIMUM PLANTING REQUIREMENT.—To be eli-
gible for pajmients under clause (i), except as provided 
in clauses (iv) and (v), the producers on a farm must 
actually plant upland cotton for harvest on at least 50 
percent of the maximum pa3rment acres for cotton for 
the farm. 
"(iii) DEFICIENCY PAYMENTS.—Notwithstanding any 
other provision of this section, any producer who 
devotes a portion of the maximum payment acres for 
upland cotton for the farm to conservation uses (or 
other uses as provided in subparsigraph (E)) under this 
subparagraph shall receive deficiency pajrments on the 
acreage that is considered to be planted to upland 
cotton and eligible for pa3maents under this subpara-
graph for the crop at a per-pound rate established by 
the Secretary, except that the rate may not be estab-
lished at less than the projected deficiency pa3mient 
rate for the crop, as determined by the Secretary. Such 
projected payment rate for the crop shall be announced 
by the Secretary prior to the period during which 
upland cotton producers may agree to participate in 
the program for the crop. 
"(iv) QUARANTINES.—If a State or local agency has 
imposed in an area of a State or county a quarantine on 
the planting of upland cotton for harvest on farms in 
the area, the State committee established under section 
8(b) of the Soil Conservation and Domestic Allotment 
Act (16 U.S.C. 590h(b)) may recommend to the Sec-
retary that pajmients be made under this paragraph, 
without regard to the requirement imposed under 
clause (ii), to producers in the area who were required 
to forgo the planting of uplsind cotton for harvest on 
acreage to alleviate or eliminate the condition requir-
ing the quarantine. If the Secretary determines that 
the condition exists, the Secretary may make pajrments 
under this pareigraph to the producers. To be eligible 
for payments under this clause, the producers must 
devote the acreage to conservation uses (except as pro-
vided in subparagraph (E)). 
"(v) PREVENTED PLANTING.—If an acreage limitation 
program under subsection (e) is in effect for any crop of 
PUBLIC LAW 101-624—NOV, 28, 1990 
104 STAT. 3429 
upland cotton and if the Secretary determines that 
producers on a farm are prevented from planting the 
acreage intended for upland cotton to upland cotton 
because of drought, flood, or other natural disaster, or 
other condition beyond the control of the producers, the 
Secretary shEill make available to such producers pay-
ments under this subparagraph without regard to the 
requirement imposed under clause (ii). To be eligible 
for payments under this clause, the producers must 
devote the acreage to conservation uses (except as pro-
vided in subparagraph (E)). Any such acreage shgdl be 
considered to be planted to upland cotton. 
"(vi) CROP ACREAGE AND PAYMENT YIELD.—The uplsmd 
cotton crop acreage base and upland cotton farm pro-
gram pa5nnent jdeld of the farm shall not be reduced 
due to the fact that a portion of the permitted cotton 
acreage of the farm was devoted to conserving uses 
(except as provided in subparagraph (E)) under this 
subparagraph. 
"(vii) LIMITATION.—Other than £is provided in clauses 
(i) through (vi), pajnnents may not be made under this 
paragraph for any crop on a greater acreage than the 
acreage actually planted to upland cotton. 
"(viii) CONSERVATION USE ACREAGE UNDER OTHER PRO-
GRAMS.—Any acreage considered to be planted to 
upland cotton in accordance with clauses (i) and (vi) 
may not also be designated as conservation use acreage 
for the purpose of fulfilling any provisions under any 
acreage limitation or land diversion program requiring 
that the producers devote a specified acreage to con-
servation uses. 
"(E) ALTERNATIVE CROPS.—The Secretary may permit, 
subject to such terms and conditions as the Secretary may 
prescribe, all or any part of acreage otherwise required to 
be devoted to conservation uses as a condition of qualifjdng 
for pajnnents under subparagraph (D) to be devoted to 
sweet sorghum, guar, sesame, castor beans, crambe, 
plantago ovato, triticale, rye, mung beans, commodities for 
which no substantial domestic production or market exists 
but that could yield industrial raw material being imported, 
or likely to be imported, into the United States, or commod-
ities grown for experimental purposes (including kenaf and 
milkweed), subject to the following sentence. The Secretary 
may permit the acreage to be devoted to the production 
only if the Secretary determines that— 
"(i) the production is not likely to increase the cost of 
the price support program and will not affect farm 
income adversely; and 
"(ii) the production is needed to provide an adequate 
supply of the commodity, or, in the case of commodities 
for which no substantial domestic production or market 
exists but that could yield industrial raw materials, the 
production is needed to encourage domestic manufac-
ture of the raw material and could lead to increased 
industrial use of the raw material to the long-term 
benefit of United States industry. 
104 STAT. 3430 
PUBLIC LAW 101-624—NOV. 28, 1990 
"(F) REDUCTION FOR DISASTER PAYMENTS.—The total quan-
tity of upland cotton on which payments would otherwise 
be payable to a producer on a farm for any crop under this 
paragraph shall be reduced by the quantity on which any 
disaster payment is made to the producer for the crop 
under paragraph (2). 
"(2) DISASTER PAYMENTS.— 
"(A) 
PREVENTED 
PLANTING.—Except as provided in 
subparagraph (C), if the Secretary determines that the 
producers on a farm are prevented from planting any por-
tion of the acreage intended for upland cotton to upland 
cotton or other nonconserving crops because of drought, 
flood, or other natural disaster, or other condition beyond 
the control of the producers, the Secretary shall make a 
prevented planting disaster payment to the producers in an 
amount equal to the product obtained by multiplying— 
"(i) the number of acres so affected but not to exceed 
the acreage planted to upland cotton for harvest 
(including any acreage that the producers were pre-
vented from planting to upland cotton or other 
nonconserving crops in lieu of upland cotton because of 
drought, flood, or other natural disaster, or other condi-
tion beyond the control of the producers) in the imme-
diately preceding year; by 
"(ii) 75 percent of the farm program pa3mient jdeld 
established for the farm by the Secretary; by 
"(iii) a pa3nnent rate equal to 33 V
a percent of the 
established price for the crop. 
"(B) REDUCED YIELDS.—Except as provided in subpara-
graph (C), if the Secretary determines that because of 
drought, flood, or other natural disaster, or other condition 
beyond the control of the producers, the total quantity of 
upland cotton that the producers are able to harvest on any 
farm is less than the result of multipljdng 75 percent of the 
farm program payment yield established by the Secretary 
for the crop by the acreage planted for harvest for the crop, 
the Secretary shall make a reduced jdeld disaster pa3nnent 
to the producers at a rate equal to 33 V
a percent of the 
established price for the crop for the deficiency in produc-
tion below 75 percent for the crop. 
"(C) (DROP INSURANCE.—Producers on a farm shall not be 
eligible for— 
"(i) prevented planting disaster payments under 
subparagraph (A), if prevented planting crop insurance 
is available to the producers under the Federal Crop 
Insurance Act (7 U.S.C. 1501 et seq.) with respect to the 
upland cotton acreage of the producers; or 
"(ii) reduced jdeld disaster pajmients under subpara-
graph (B), if reduced jdeld crop insurance is available to 
the producers under such Act with respect to the 
upland cotton acreage of the producers. 
"(D) ADMINISTRATION.— 
"(i) 
ECONOMIC 
EMERGENCIES.—Notwithstanding 
subparagraph (C), the Secretary may make a disaster 
pa3anent to the producers on a farm under this para-
graph if the Secretary determines that— 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3431 
"(I) as the result of drought, flood, or other natu-
ral disaster, or other condition beyond the control 
of the producers, the producers have suffered 
substantial losses of production either from being 
prevented from planting upland cotton or other 
nonconserving crops or from reduced yields; 
"(11) the losses have created an economic emer-
gency for the producers; 
"(HI) crop insurance indemnity payments under 
the Federal Crop Insurance Act (7 U.S.C. 1501 et 
seq.) and other forms of assistance made available 
by the Federal Government to the producers for 
the losses are insufficient to alleviate the economic 
emergency; and 
"(IV) additional assistance must be made avail-
able to the producers to alleviate the economic 
emergency, 
"(ii) ADJUSTMENTS.—The Secretary may make such 
adjustments in the amount of payments made available 
under this paragraph with respect to an individual 
farm as necessary to ensure the equitable allotment of 
the pajonents among producers, taking into account 
other forms of Federal disaster assistance provided to 
the producers for the crop involved. 
"(d) PAYMENT YIELDS.—The farm program pajnnent yields for 
farms for each crop of upland cotton shall be determined under title 
"(e) ACREAGE REDUCTION PROGRAMS.— 
"(1) IN GENERAL.— 
"(A) ESTABUSHMENT.—Notwithstanding any other provi-
sion of this Act, if the Secretary determines that the total 
supply of upland cotton, in the absence of an acreage 
limitation program, will be excessive taking into account 
the need for an adequate carry-over to maintain reasonable 
and stable supplies and prices and to meet a national 
emergency, the Secretary may provide for any crop of 
upland cotton an acreage limitation program £is described 
in paragraph (2). 
"(B) AGRICULTURAL RESOURCES CONSERVATION PROGRAM.— 
In making a determination under subparagraph (A), the 
Secretary shall take into consideration the number of acres 
placed in the agricultural resources conservation program 
established under subtitle D of title XII of the Food Security 
Act of 1985 (16 U.S.C. 3831 et seq.). 
"(C) ANNOUNCEMENTS.— 
"(i) PREUMINARY ANNOUNCEMENT.—If the Secretary 
elects to implement an acreage limitation program for 
any crop year, the Secretary shall make a preliminary 
announcement of any such program not later than 
November 1 of the calendar year preceding the year in 
which the crop is harvested, except that in the case of 
the 1991 crop, the Secretary shall announce the pro-
gram. as soon as practicable after the date of enactment 
of this section. The announcement shall include, among 
other information determined necessary by the Sec-
retary, an announcement of the uniform percentage 
104 STAT. 3432 
PUBLIC LAW 101-624—NOV. 28, 1990 
Regulations. 
reduction in the upland cotton crop acreage base de-
scribed in paragraph (2XA). 
"(ii) FINAL ANNOUNCEMENT.—Not later than January 
1 of the calendar year in which the crop is harvested, 
the Secretary shall make a final announcement of the 
program. The announcement shall include, among 
other information determined necessary by the Sec-
retary, an announcement of the uniform percentage 
reduction in the upland cotton crop described in para-
graph (2XA). 
"(iii) 
OPTIONAL 
PROGRAMS 
IN 
EARLY 
PLANTING 
AREAS.—The Secretary shall allow producers in early 
planting areas to elect to participate in the program on 
the terms of the acreage limitation program— 
"(I) first announced for the crop under clause (i); 
or 
"(II) as subsequently revised under clause (ii), 
if the Secretary determines that the producers may be 
unfairly disadvantaged by the revision. 
"(D) DESIRED CARRY-OVER.—The Secretary shall carry out 
an acreage limitation program described in paragraph (2) 
for a crop of upland cotton in a manner that will result in a 
ratio of carry-over to total disappearance of 30 percent, 
based on the Secretary's most recent projection of carry-
over and total disappearance at the time of announcement 
of the acreage limitation program. For the purpose of this 
subparagraph, the term 'total disappearance' means all 
upland cotton utilization, including total domestic, total 
export, and total residual disappearance. 
'(2) ACREAGE UMITATION PROGRAM.— 
"(A) UNIFORM PERCENTAGE REDUCTION.—Except as pro-
vided in paragraph (3), if an upland cotton acreage limita-
tion program is announced under paragraph (1), the limita-
tion shall be achieved by applying a uniform percentage 
reduction (from 0 to 25 percent) to the upland cotton crop 
acreage base for the crop for each upland cotton-producing 
farm. 
"(B) CoMPUANCE.—Except as provided in section 504, 
producers who knowingly produce upland cotton in excess 
of the permitted upland cotton acreage for the farm, as 
established in accordance with subparagraph (A), shall be 
ineligible for upland cotton loans smd payments with re-
spect to that farm. 
"(C) CROP ACREAGE BASES.—Upland cotton crop acreage 
bases for each crop of upland cotton shall be determined 
under title V. 
"(D) 
ACREAGE 
DEVOTED TO 
CONSERVATION USES.—A 
number of acres on the farm shall be devoted to conserva-
tion uses, in accordance with regulations issued by the 
Secretary. Such number shall be determined by multipl3dng 
the upland cotton crop acreage base by the percentage 
reduction required by the Secretary. The number of acres 
so determined is hereafter in this subsection referred to as 
'reduced acreage'. The remaining acreage is hereafter in 
this subsection referred to as permitted acreage'. Per-
mitted acreage may be adjusted by the Secretary as pro-
vided in paragraph (3) and in section 504. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3433 
"(E) 
INDIVIDUAL FARM PROGRAM ACREAGE.—Except 
as 
otherwise provided in subsection (c), the individual farm 
program acreage shall be the acreage planted on the farm 
to upland cotton for harvest within the permitted upland 
cotton acreage for the farm as established under this para-
graph. 
"(F) PLANTING DESIGNATED CROPS ON REDUCED ACREAGE.— 
"(i) DEFINITION OF DESIGNATED CROP.—As used in this 
subparagraph, the term 'designated crop' means a crop 
defined in section 504(bXl), excluding any program crop 
as defined in section 502(3). 
"(ii) IN GENERAL.—Subject to clause (iii), the Sec-
retary may permit producers on a farm to plant a 
designated crop on no more than one-half of the re-
duced acreage on the farm. 
"(iii) LIMITATIONS.—If the producers on a farm elect 
to plant a designated crop on reduced acreage under 
this subparagraph— 
"(I) the amount of the deficiency payment that 
the producers are otherwise eligible to receive 
under subsection (c) shall be reduced, for each acre 
(or portion thereof) that is planted to the des-
ignated crop, by an amount equal to the deficiency 
payment that would be made with respect to a 
number of acres of the crop that the Secretary 
considers appropriate, except that if the producers 
on the farm are participating in a program estab-
lished for more than one program crop, the amount 
of the reduction shall be determined by prorating 
the reduction based on the acreage planted or 
considered planted on the farm to £dl of such pro-
gram crops; and 
"(II) the Secretary shall ensure that reductions 
in deficiency pajmients under subclause (I) are 
sufficient to ensure that this subparagraph will 
result in no additional cost to the Commodity 
Credit Corporation. 
"(3) TARGETED OPTION PAYMENTS.— 
"(A) IN GENERAL.—Notwithstanding any other provision 
of this section, if the Secretary implements an acreage 
limitation program with respect to any of the 1991 through 
1995 crops of upland cotton, the Secretary may make avail-
able to producers on a farm who do not receive pajmients 
under subsection (cXlXD) for such crop on the farm, adjust-
ments in the level of deficiency payments that would other-
wise be made available to the producers if the producers 
exercise the payment options provided in this paragraph. 
"(B) PAYMENT OPTIONS.—If the Secretary elects to carry 
out this paragraph, the Secretary shall make the pajonent 
options specified in subparagraphs (C) and (D) available to 
producers who agree to make adjustments in the quantity 
of acreage diverted from the production of upland cotton 
under an acreage limitation program in accordance with 
this paragraph. 
"(C) INCREASED ACREAGE UMITATION OPTION.— 
"(i) INCREASE IN ESTABUSHED PRICE.—If the Secretary 
elects to carry out this paragraph, a producer shall be 
104 STAT. 3434 
PUBLIC LAW 101-624—NOV. 28, 1990 
eligible to receive an increase in the established price 
for upland cotton under clause (ii) if the producer 
agrees to an increase in the acreage limitation percent-
age to be applied to the producers' upland cotton acre-
age base above the acreage limitation percentage an-
nounced by the Secretary. 
"(ii) METHOD OF CALCULATION.—For the purposes of 
\ 
calculating deficiency pa3nnents to be made available to 
producers who participate in the program under this 
paragraph, the Secretary shall increase the established 
price for upland cotton by an amount determined by 
the Secretary, but not less than 0.5 percent, nor more 
than 1 percent, for each 1 percentage point increase in 
the acreage limitation percentage applied to the 
producers' upland cotton acreage base. 
"(iii) LIMITATION.—The acreage limitation percentage 
to be applied to the producers upland cotton acreage 
base shall not be increased by more than 10 percentage 
points above the acreage limitation percentage an-
nounced by the Secretary for the crop or above 25 
percent total for the crop. 
"(iv) ADJUSTMENT FOR UNDERPLANTINGS.—In deter-
mining the increased acreage limitation percentage 
that is applied to the producer's upland cotton base 
under this paragraph, the Secretary shall exclude an 
amount of acreage equal to the average difference be-
tween the producer's permitted upland cotton acreage 
and the acreage actually planted (including acreage 
devoted to conserving uses under subsection (c)(lXD)) to 
upland cotton for harvest during the previous 2 years. 
"(D) DECREASED ACREAGE UMITATION OPTION.— 
"(i) DECREASE IN ACREAGE UMITATION REQUIRE-
MENT.—If the Secretary elects to carry out this para-
graph, a producer shall be eligible to decrease the 
acreage limitation percentage applicable to the produc-
ers' upland cotton acreage base (as announced by the 
Secretary) if the producer agrees to a decrease in the 
established price for upland cotton under clause (ii) for 
the purpose of calculating deficiency pa3mients to be 
made available to the producer. 
"(ii) METHOD OF CALCULATION.—For the purposes of 
calculating deficiency pa3anents to be made available to 
producers who choose the option set forth in this 
subparagraph, the Secretary shall decrease the estab-
lished price for upland cotton by an amount to be 
determined by the Secretary, but not less than 0.5 
percent, nor more than 1 percent, for each 1 percenteige 
point decrease in the acreage limitation percentage 
applied to the producers' upland cotton acreage base, 
(iii) LIMITATION.—A producer may not choose to 
decrease the acreage limitation percentage applicable 
to the producers' upland cotton acreage base under this 
paragraph by more than one-half of the announced 
acreage limitation percentage. 
"(E) PARTICIPATION AND PRODUCTION EFFECTS.—Notwith-
standing any other provision of this paragraph, the Sec-
retary shall, to the extent practicable, ensure that the 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3435 
program provided for in this pargigraph does not have a 
significant effect on program participation or total produc-
tion and shall be offered in such a manner that the Sec-
retary determines will result in no additional budget out-
lays. The Secretary shall provide an analysis of the Sec-
retary's determination to the Committee on Agriculture of 
the House of Representatives and the Committee on Agri-
culture, Nutrition, and Forestry of the Senate. 
'(4) ADMINISTRATION.— 
"(A) PROTECTION FROM WEEDS AND EROSION.—The regula- Regulations. 
tions issued by the Secretary under paragraph (2) with 
respect to acreage required to be devoted to conservation 
uses shall assure protection of the acreage from weeds and 
wind and water erosion. 
"(B) ANNUAL OR PERENNIAL COVER.— 
"(i) IN GENERAL.—Except as provided in paragraph 
(2), a producer who participates in an acreage reduction 
program established for a crop of upland cotton under 
this subsection shall be required to plant to an annual 
or perennial cover 50 percent (or more, at the option of 
the producer) of the acreage that is required to be 
removed from the production of upland cotton, but not 
to exceed 5 percent (or more, at the option of the 
producer) of the crop acreage base established for the 
crop. This requirement shall not apply with respect to 
arid areas (including summer fallow areas), as deter-
mined by the Secretary. 
"(ii) MULTIYEAR PROGRAM.— 
"(I) COST-SHARE ASSISTANCE.—If a producer elects 
to establish a perennial cover capable of improving 
water quality or wildlife habitat on the acreage, 
the Commodity Credit Corporation shall make 
available cost-share assistance for 25 percent of the 
approved cost of establishing the cover on not more 
than 50 percent of the acreage that is required to 
be diverted from production, but not to exceed 5 
percent (or more, at the option of the producer) of 
the crop acreage base established for a crop. 
"(II) AGREEMENT OF PRODUCER.—If a producer 
elects to establish a perennial cover on the acreage 
under this subparagraph and receives cost-share 
assistance from the Corporation with respect to the 
cover, the producer, under such terms and condi-
tions as may be prescribed by the Secretary, taking 
into consideration guidelines established by the 
State technical committees established in subtitle 
G of title XII of the Food Security Act of 1985, shall 
agree to maintain the perennial cover for a mini-
mum of 3 years, 
"(iii) CONSERVING CROPS.—The Secretary may permit, 
subject to such terms and conditions as the Secretary 
may prescribe, all or any part of the acreage to be 
devoted to sweet sorghum, guar, sesame, castor beans, 
crambe, plantago ovato, triticale, rye, mung beans, 
milkweed, or other commodity, if the Secretary deter-
mines that the production is needed to provide an 
adequate supply of the commodities, is not likely to 
104 STAT. 3436 
PUBLIC LAW 101-624—NOV. 28, 1990 
increase the cost of the price support program, and will 
not affect farm income adversely. 
"(C) HAYING AND GRAZING.— 
"(i) IN GENERAL.—Except as provided in clause (ii), 
hajdng and grazing of reduced acreage, acreage devoted 
to a conservation use under subsection (c)(lXD), and 
acreage diverted from production under a land diver-
sion program established under this section shall be 
permitted, except during any consecutive 5-month 
period that is established by the State committee estab-
lished under section 8(b) of the Soil Conservation and 
Domestic Allotment Act (16 U.S.C. 590h(b)) for a State. 
The 5-month period shall be established during the 
period beginning April 1, and ending October 81, of a 
year. 
"(ii) NATURAL DISASTERS.—In the case of a natural 
disaster, the Secretary may permit unlimited haying 
and grazing on the acreage. The Secretary may not 
exclude irrigated or irrigable acreage not planted in 
alfalfa when exercising the authority under this clause. 
"(D) WATER STORAGE USES.— 
"(i) IN GENERAL.—The regulations issued by the Sec-
retary under paragraph (2) with respect to acreage 
required to be devoted to conservation uses shall pro-
vide that land that has been converted to water storage 
uses shall be considered to be devoted to conservation 
uses if the land was devoted to wheat, feed grains, 
cotton, rice, or oilseeds in at least 8 of the immediately 
preceding 5 years. The land shall be considered to be 
devoted to conservation uses for the period that the 
land remains in water storage uses, but not to exceed 5 
years subsequent to its conversion to water storage 
uses. 
"(ii) LIMITATIONS.—Land converted to water storage 
uses for the purposes of this subparagraph may not be 
devoted to any commercial use, including commercial 
fish production. The water stored on the land may not 
be ground water. The farm on which the land is located 
must have been irrigated with ground water during at 
least 1 of the preceding 5 crop years. 
"(5) LAND DIVERSION PROGRAM.— 
"(A) PAYMENTS.— 
"(i) IN GENERAL.—The Secretary may make land 
diversion pajmients to producers of upland cotton, 
whether or not an acreage limitation program for 
upland cotton is in effect, if the Secretary determines 
that the land diversion payments are necessary to 
assist in adjusting the total national acreage of upland 
Government 
cotton to desirable goals. The land diversion payments 
contracts. 
shall be made to producers who, to the extent pre-
scribed by the Secretary, devote to approved conserva-
tion uses an acreage of cropland on the farm in accord-
ance with land diversion contracts entered into by the 
Secretary with the producers. 
~ 
"(ii) EXCESS CARRY-OVER.—If, at the time of final 
announcement of the acreage limitation program estab-
lished under this subsection, the projected carry-over of 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3437 
upland cotton for the crop year is equal to or greater 
than 8 million bales, the Secretary shall offer a paid 
land diversion program to producers of upland cotton. 
Payments to producers under such a program shall be 
determined by multiplying— 
"(I) the payment rate, of not less than 85 cents 
per pound of cotton, established by the Secretary; 
by 
"(11) the program payment jdeld established for 
the crop for the farm; by 
"(III) the number of permitted upland cotton 
acres diverted on the farm. 
"(B) BIDS FOR CONTRACTS.—The eimounts payable to 
producers under land diversion contracts may be deter-
mined through the submission of bids for the contracts by 
producers in such manner as the Secretary may prescribe 
or through such other means as the Secretary determines 
appropriate. In determining the acceptability of contract 
offers, the Secretary shall take into consideration the 
extent of the diversion to be undertaken by the producers 
and the productivity of the acreage diverted. 
"(C) LIMITATIONS ON DIVERTED ACREAGE.— 
"(i) MAXIMUM ACREAGE PER FARM, COUNTY, OR 
COMMUNITY.—The Secretary shall limit the total acre-
age to be diverted under this paragraph— 
"(I) to not more than 15 percent of the upland 
cotton crop acreage base for a farm; and 
"(II) under agreements in any county or local 
community so as not to affect adversely the econ-
omy of the county or local community, 
"(ii) LOWER PARTICIPATION LEVELS.—The Secretary 
may allow producers to participate in a land diversion 
program under this paragraph at a level lower than the 
maximum level announced by the Secretary, at the 
option of the producer, if the Secretary determines that 
it will increase participation in the program. 
'(6) CONSERVATION PRACTICES.— 
"(A) WiLDUFE F
O
O
D PLOTS O
R HABITAT.—The reduced acre-
age and additional diverted acreage may be devoted to 
wildlife food plots or wildlife habitat in conformity with 
standards established by the Secretary in consultation with 
wildlife agencies. The Secretary may pay an appropriate 
share of the cost of practices designed to carry out the 
purposes of this subparagraph. 
"(B) PuBUC ACCESS.—The Secretary may provide for an 
additional payment on the acreage in an amount deter-
mined by the Secretary to be appropriate in relation to the 
benefit to the general public if the producer agrees to 
permit, without other compensation, access to all or such 
portion of the farm, as the Secretary may prescribe, by the 
general public, for hunting, trapping, fishing, and hiking, 
subject to applicable State and Federal regulations. 
'(7) PARTICIPATION AGREEMENTS.— 
"(A) IN GENERAL.—Producers on a farm desiring to 
participate in the program conducted under this subsection 
shall execute an agreement with the Secretary providing 
104 STAT. 3438 
PUBLIC LAW 101-624—NOV. 28, 1990 
for the participation not later than such date as the Sec-
retary may prescribe. 
"(B) MODIFICATION OR TERMINATION.—The Secretary may, 
by mutual agreement with producers on a farm, modify or 
terminate any such agreement if the Secretary determines 
the action necessary because of an emergency created by 
drought or other disaster or to prevent or alleviate a short-
age in the supply of agricultural commodities. The Sec-
retary may modify the agreement under this subparagraph 
for the purpose of alleviating a shortage in the supply of 
agricultural commodities only if there has been a signifi-
cant change in the estimated stocks of the commodity since 
the Secretary announced the final terms and conditions of 
the program for the crop of upland cotton. 
"(f) INVENTORY REDUCTION PAYMENTS.— 
"(1) IN GENERAL.—The Secretary may, for each of the 1991 
through 1995 crops of upland cotton, make pajnnents available 
to producers who meet the requirements of this subsection. 
"(2) FORM.—The pajmients may be made in the form of 
marketing certificates. 
"(3) PAYMENTS.— 
"(A) IN GENERAL.—Pajonents under this subsection shall 
be determined in the same manner as provided in subsec-
tion (b). 
"(B) QUANTITY OF COTTON MADE AVAILABLE.—The quan-
tity of upland cotton to be made available to a producer 
under this subsection shall be equal in value to the pay-
ments so determined under this subsection. 
"(4) ELIGIBILITY.—A producer shall be eligible to receive a 
payment under this subsection for a crop if the producer— 
"(A) Eigrees to forgo obtaining a loan under subsection (a); 
"(B) agrees to forgo receiving pa3nnents under subsection 
(0; 
"(C) does not plant upland cotton for harvest in excess of 
the crop acreage base reduced by one-half of any acreage 
required to be diverted from production under subsection 
(e); and 
"(D) otherwise complies with this section. 
"(g) EQUITABLE REUEF.— 
"(1) LOANS AND PAYMENTS.—If the failure of a producer to 
comply fully with the terms and conditions of the program 
conducted under this section precludes the making of loans and 
payments, the Secretary may, nevertheless, make such loans 
and payments in such amounts as the Secretary determines are 
equitable in relation to the seriousness of the failure. The 
Secretary may consider whether the producer made a good faith 
effort to comply fully with the terms and conditions of the 
program in determining whether equitable relief is warranted 
under this paragraph. 
"(2) DEADLINES AND PROGRAM REQUIREMENTS.—The Secretary 
may authorize the county and State committees established 
under section 8(b) of the &)il Conservation and Domestic Allot-
ment Act (16 U.S.C. 590h(b)) to waive or modify deadlines and 
other program requirements in cases in which lateness or fail-
ure to meet such other requirements does not affect adversely 
the operation of the program. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3439 
"(h) REGULATIONS.—The Secretary may issue such regulations as 
the Secretary determines necessary to carry out this section. 
"(i) COMMODITY CREDIT CORPORATION.—The Secretary shall carry 
out the program authorized by this section through the Commodity 
Credit Corporation. 
"(j) ASSIGNMENT OF PAYMENTS.—The provisions of section 8(g) of 
the Soil CJonservation and Domestic Allotment Act (16 U.S.C. 
590h(g)) (relating to assignment of payments) shall apply to pay-
ments under this section. 
"(k) SHARING OF PAYMENTS.—The Secretary shall provide for the 
sharing of pajrments made under this section for any farm among 
the producers on the farm on a fair and equitable basis. 
"(1) TENANTS AND SHARECROPPERS.—The Secretary shsill provide 
adequate safeguards to protect the interests of tenants and share-
croppers. 
' W ) CROSS-COMPLIANCE.— 
"(1) IN GENERAL.—Compliance on a farm with the terms and 
conditions of any other commodity program, or compliance with 
crop acreage base requirements for any other commodity, may 
not be required as a condition of eligibility for loans or pay-
ments under this section. 
"(2) COMPUANCE ON OTHER FARMS.—The Secretary may 
not 
require producers on a farm, as a condition of eligibility for 
loans or pajnnents under this section for the farm, to comply 
with the terms and conditions of the upland cotton program 
with respect to any other farm operated by the producers, 
"(n) SPECIAL LIMITED GLOBAL IMPORT QUOTA.— 
"(1) IN GENERAL.—The President shall, within 180 days after President. 
the date of enactment of this section, establish an import quota 
program which shall provide that whenever the Secretary 
determines and announces that the average price of the base 
quality of uplemd cotton, as determined by the Secretary, in the 
designated spot markets for a month exceeded 130 percent of 
the average price of such quality of cotton in such markets for 
the preceding 36 months, notwithstanding any other provision 
of law, there shall immediately be in effect a special limited 
global import quota subject to the following conditions: 
"(A) QUANTITY.—The quantity of the specied quota shall 
be equal to 21 days of domestic mill consumption of upland 
cotton at the seasonally adjusted average rate of the most 
recent 3 months for which data are available. 
"(B) QUANTITY IF PRIOR QUOTA.—If a special quota has 
been established under this subsection during the preceding 
12 months, the quantity of the quota next established under 
this subsection shall be the smaller of 21 days of domestic 
mill consumption calculated as set forth in subparagraph 
(A) or the quantity required to increase the supply to 130 
percent of the demand. 
"(C) DEFINITIONS.—As used in subparagraph (B): 
"(i) SUPPLY.—The term 'supply' means, using the 
latest official data of the Bureau of the Census, the 
Department of Agriculture, and the Department of the 
Treasury— 
"(I) the carry-over of upland cotton at the begin-
ning of the marketing year (adjusted to 480-pound 
bales) in which the special quota is established; 
plus 
104 STAT. 3440 
PUBLIC LAW 101-624—NOV. 28, 1990 
"(11) production of the current crop; plus 
"(III) imports to the latest date available during 
the marketing year, 
"(ii) DEMAND.—The term 'demand' means— 
"(I) the average seasonally adjusted annual rate 
of domestic mill consumption in the most recent 3 
months for which data are available; plus 
"(II) the larger of— 
"(aa) average exports of upland cotton 
during the preceding 6 marketing years; or 
"(bb) cumulative exports of upland cotton 
plus outstanding export sales for the market-
ing year in which the special quota is estab-
lished. 
"(D) QUOTA ENTRY PERIOD.—When a special quota is 
established under this subsection, cotton may be entered 
under the quota during the 90-day period beginning on the 
effective date of the proclamation. 
"(2) No OVERLAP.—Notwithstanding paragraph (1), a special 
quota period may not be established that overlaps an existing 
quota period or a special quota period established under subsec-
tion (a)(5)(F). 
"(o) CROPS.—Notwithstanding any other provision of law, this 
section shall be effective only for the 1991 through 1995 crops of 
upland cotton.". 
7 u s e 1342 note. 
SEC. 502. SUSPENSION OF BASE ACREAGE ALLOTMENTS, MARKETING 
QUOTAS, AND RELATED PROVISIONS. 
Sections 342, 343, 344, 345, 346, and 377 of the Agricultural 
Adjustment Act of 1938 (7 U.S.C. 1342-1346 and 1377) shall not be 
applicable to any of the 1991 through 1995 crops of upland cotton. 
7 u s e 1444 note. 
SEC. 503. MISCELLANEOUS COTTON PROVISIONS. 
Section 103(a) of the Agricultural Act of 1949 (7 U.S.C. 1444(a)) 
shall not be applicable to the 1991 through 1995 crops. 
SEC. 504. SKIPROW PRACTICES. 
Section 374(a) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 
1374(a)) is amended by striking "1990 crops" and inserting "1995 
crops, except that, for the 1991 through 1995 crops, the rules shall 
allow 30 inch rows to be taken into account for classifying the 
acreage planted to cotton and the area skipped". 
7 u s e 1342 note. 
SEC. 505. PRELIMINARY ALLOTMENTS FOR 1996 CROP OF UPLAND 
COTTON. 
Notwithstanding any other provision of law, the permanent State, 
county, and farm base acreage allotments for the 1977 crop of 
upland cotton, adjusted for any underplantings in 1977 and reconsti-
tuted as provided in section 379 of the Agricultural Adjustment Act 
of 1938 (7 U.S.C. 1379), shall be the preliminary allotments for the 
1996 crop. 
SEC. 506. EXTRA LONG STAPLE COTTON PROGRAM. 
(a) IN GENERAL.—Section 103(h) of the Agricultural Act of 1949 (7 
U.S.C. 1444(h)) is amended— 
(1) by striking paragraphs (4) through (6); 
(2) by redesignating paragraphs (7) through (19) as paragraphs 
(4) through (16), respectively; 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3441 
(3) in the second sentence of paragraph (5XAXi) (as so redesig-
nated), by inserting "(including a zero percentage reduction)" 
after "reduction"; 
(4) by striking paragraph (13) (as so redesignated) and insert-
ing the following new paragraph: 
"(13XA) Compliance on a farm with the terms and conditions of 
any other commodity program or compliance with crop acreage base 
requirements for any other commodity may not be required as a 
condition of eligibility for loans or pa3mients under this section. 
"(B) The Secretary may not require producers on a farm, as a 
condition of eligibility for loans or pa5ntnents under this section for 
the farm, to comply with the terms and conditions of the extra long 
staple cotton program with respect to any other farm operated by 
the producers. ; and 
(5) in paragraph (16) (as so redesignated), by striking "1991" 
and inserting "1996". 
(b) CONFORMING AMENDMENTS.—Section 103(h) of such Act is 7 use 1444. 
amended— 
(1) in paragraph (3XA)— 
(A) by striking "paragraph (6) or paragraph (8XA) of this 
subsection" and inserting paragraph (5XA)'; and 
(B) by striking "paragraph (7) of this subsection" and 
inserting "paragraph (4) ; 
(2) in paragraph (3XC), by striking "paragraph (8XA) of this 
subsection" and inserting "paragraph (5XA)"; 
(3) in paragraph (5XAXi) (as redesignated by subsection (aX2)), 
by striking the next to last sentence; 
(4) in pareigraph (5XAXii) (as redesignated by subsection (aX2)), 
by striking "paragraph (16XC)" and inserting "paragraph 
(13XC)"; and 
(5) in paragraph (6) (as redesignated by subsection (aX2)), by 
striking "paragraph (8) of this subsection ' and inserting "para-
graph (5)". 
SEC. 507. COTTONSEED AND COTTONSEED OIL PRICE SUPPORT. 
Section 203 of the Agricultural Act of 1949 (7 U.S.C. 1446d) is 
amended to read as follows: 
"SEC. 
2
0
3
. 
COTTONSEED 
AND 
COTTONSEED 
OIL 
PRICE 
SUPPORT. 
"(a) IN GENERAL.—If the Secretary determines that any oilseed 
program or programs cause, or are likely to cause, a reduction in 
prices received by producers for cottonseed or by processors for 
cottonseed oil, the Secretary shall take such actions as are necessary 
to offset the actual or anticipated impact of the program on prices 
for cottonseed or cottonseed oil. The actions shall only include 
actions to stabilize or increase the price of cottonseed, and shall not 
include actions to decrease the prices of other oilseeds. 
"(b) CROPS.—Notwithstanding any other provision of law, this 
section shall be effective only for the 1991 through 1995 crops of 
upland cotton.". 
SEC. 508. SECURITY INTERESTS. 
Records. 
(a) IN GENERAL.—Section 17 of the United States Warehouse Act 
(7 U.S.C. 259) is amended by adding at the end the following new 
subsections: 
"(cXlXA) The Secretary of Agriculture, or the designated rep-
resentative of the Secretary, may provide that in lieu of issuing a 
104 STAT. 3442 
PUBLIC LAW 101-624—NOV. 28, 1990 
receipt for cotton stored in a warehouse licensed under this Act the 
information required to be included in a receipt under section 18 
shall be recorded instead in a central filing system or systems 
maintained in one or more locations in accordance with regulations 
issued by the Secretary. 
"(B) Any such record shall state that the cotton shall be delivered 
to a specified person, or to a specified person or to the order of the 
person. 
"(C) This subsection and subsection (d) shall not apply to a ware-
house that does not have facilities to electronically transmit and 
receive information to and from the central filing system. Nothing 
in this subsection shall be construed as to require a warehouseman 
to obtain the facilities. 
"(2) Notwithstanding any other provision of law— 
"(A) the record of the ownership interests of persons in cotton 
included in any such central filing system shall be deemed to be 
a receipt for the purposes of this Act and shall establish the 
ownership interest of persons in the cotton; and 
"(B) the Secretary may provide for the recording of liens in 
the centrsd filing system that shall represent the perfected 
security interest of persons whose liens are so recorded and for 
liens that are so recorded to be the only liens that are enforce-
able against owners and purchasers of cotton registered in the 
central filing system, except that nothing in this paragraph 
shall 
be 
construed 
to alter 
the 
enforceability 
of 
the 
warehouseman's lien. 
"(3) A warehouseman conducting a warehouse licensed under this 
Act, in the absence of a lawful excuse, shall, without unnecessary 
delay, deliver the cotton stored in the warehouse on demand made 
by the person named in the record in the central filing system as the 
owner of the receipt representing the cotton, if demand is accom-
panied by— 
"(A) an offer to satisfy a valid warehouseman's lien, as deter-
mined by the Secretary; and 
"(B) an offer to provide an acknowledgement in the central 
filing system, if requested by the warehouseman, that the cotton 
has been delivered. 
Regulations. 
"(dXD The Secretary shall (under such regulations as the Sec-
retary may prescribe) charge and provide for the collection of 
reasonable fees to cover the estimated costs to the Department of 
Agriculture incident to the functioning and the maintenance of any 
central filing system or systems referred to in subsection (c) that is 
administered by the Department of Agriculture. 
"(2) The Secretary may provide for the fees to be collected by 
persons operating the central filing system administered by the 
Department from those persons recording information in the central 
filing system at such time and in such manner as may be prescribed 
in regulations issued by the Secretary. 
"(3) The fees shall be deposited into a fund which shall be avail-
able without fiscal year limitation for the expenses of the Secretary 
incurred in carrying out subsection (c) and this subsection. Any 
sums collected or received by the Secretary under this Act and 
deposited to the fund and any late pajmient penalties collected by 
the Secretary and credited to the fund may be invested by the 
Secretary in insured or fully collateralized, interest-bearing ac-
counts or, at the discretion of the Secretary, by the Secretary of the 
Treasury in United States Government debt instruments. The in-
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3443 
terest earned on the sums and any late pajonent penedties collected 
by the Secretary shall be credited to the fund and shall be avedlable 
without fiscsd year limitations for the expenses of the Service 
incurred in carrjdng out subsection (c) and this subsection.". 
(b) PENALTY.—Section 30 of such Act (7 U.S.C. 270) is amended by 
inserting after "who shall issue or utter a false or fraudulent receipt 
or certificate," the following: "or furnish false or fraudulent 
information to a central filing system maintained under section 
17,". 
TITLE VI—RICE 
SEC. 601. LOANS, PAYMENTS, AND ACREAGE REDUCTION PROGRAMS FOR 
THE 1991 THROUGH 1995 CROPS OF RICE. 
The Agricultural Act of 1949 is gunended by inserting after section 
lOlA (7 U.S.C. 1441-1) the following new section: 
"SEC. lOlB. LOANS, PAYMENTS, AND ACREAGE REDUCTION PROGRAMS 7 USC 1441-2. 
FOR THE 1991 THROUGH 1995 CROPS OF RICE. 
"(a) LOANS AND PURCHASES.— 
"(1) IN GENERAL.—Except as otherwise provided in this 
subsection, the Secretary shall make available to producers on a 
farm nonrecourse loans and purchases for each of the 1991 
through 1995 crops of rice produced on the farm at a level that 
is not less than the higher of— 
"(A) 85 percent of the simple average price received by 
producers, as determined by the Secretary, during the 
marketing years for the immediately preceding 5 crops of 
rice, excluding the year in which the average price was the 
highest £ind the year in which the average price was the 
lowest in the period; or 
"(B) $6.50 per hundredweight. 
"(2) MAXIMUM REDUCTION.—The loan level for any crop of rice 
determined under paragraph (1) may not be reduced by more 
than 5 percent from the level determined for the preceding crop. 
"(3) ANNOUNCEMENT OF LOAN LEVEL AND ESTABUSHED PRICE.— 
The loan and purchase level and the established price for each 
of the 1991 through 1995 crops of rice shall be announced not 
later than January 31 of each calendar year for the crop 
harvested in the calendar year or, in the case of the 1991 crop, 
as soon as practicable after the date of enactment of this 
section. 
"(4) TERM.—A loan made under this subsection shall have a 
term of not more than 9 months beginning after the month in 
which the application for the loan is made. 
"(5) MARKETING LOAN PROVISIONS.— 
"(A) IN GENERAL.—In order to ensure that a competitive 
market position is maintained for rice, the Secretary shall 
permit a producer to repay a loan made under paragraph 
(1) for a crop at a level that is the lesser o
f
— 
"(i) the loan level determined for the crop; or 
"(ii) the higher of— 
"(I) the loan level determined for the crop multi-
plied by 70 percent; or 
"(II) the prevailing world market price for rice, 
as determined by the Secretary. 
104 STAT. 3444 
PUBLIC LAW 101-624—NOV. 28, 1990 
Regulations. 
"(B) PREVAILING W
O
R
L
D MARKET PRICE.—The Secretary 
sh£ill prescribe by regulation— 
"(i) a formula to define the prevailing world market 
price for rice; and 
"(ii) a mechanism by which the Secretary shall an-
nounce periodically the prevailing world market price 
for rice. 
"(C) PRODUCER PURCHASE OF MARKETING CERTIFICATES.— 
"(i) IN GENERAL.—As a condition of permitting a 
producer to repay a loan as provided in subparagraph 
(A), the Secretary may require a producer to purchase 
marketing certificates equal in value to an amount that 
does not exceed one-half the difference, as determined 
by the Secretary, between the amount of the loan 
obtained by the producer and the amount of the loan 
repayment. 
"(ii) REDEMPTION FOR RICE OR CASH.—The certificates 
shall be redeemable for agricultural commodities 
owned by the Commodity Credit Corporation valued at 
the prevailing market price, as determined by the Sec-
retary or for cash, under such terms and conditions as 
the Secretary may prescribe. 
"(iii) REDEMPTION, MARKETING, OR EXCHANGE.—The 
Commodity Credit (Corporation, under regulations pre-
scribed by the Secretary, shall assist any person receiv-
ing marketing certificates under this subparagraph in 
the redemption or marketing or exchange of the certifi-
cates at such times, in such manner, and at such price 
levels as the Secretary determines will best effectuate 
the purposes of the program established under this 
section. 
"(iv) CHARGES.—If any such certificate is not pre-
sented for redemption or marketing within a reason-
able number of days after issuance, £is determined by 
the Secretary, reasonable costs of storage and other 
canying charges, as determined by the Secretary, shall 
be deducted from the value of the certificate for the 
period beginning after the reasonable number of days 
and ending with the date of the presentation of the 
certificate to the Commodity Credit Corporation. 
"(v) DESIGNATION OF COMMODITIES AND PRODUCTS.— 
Insofar as practicable, the Secretary shall permit 
owners of certificates to designate the commodities and 
the products thereof, including stor£ige sites thereof, 
the owners would prefer to receive in exchange for 
certificates. 
"(vi) SALES PRICE RESTRICTIONS.—Notwithstanding 
any other provision of law, any price restrictions that 
may otherwise apply to the disposition of agricultural 
commodities by the Commodity Credit (jorporation 
shall not apply to the redemption of certificates under 
this subparagraph. 
"(vii) DISPLACEMENT.—The Secretary shall take such 
measures as may be necessary to prevent the market-
ing or exchange of agricultural commodities and the 
products thereof for certificates under this subpara-
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3445 
graph from adversely affecting the income of producers 
of the commodities or products. 
"(viii) TRANSFERS.—Under regulations prescribed by 
the Secretary, certificates issued under this subpara-
graph may be transferred to other persons approved by 
the Secretary. 
"(D) CERTIFICATES TO MAINTAIN COMPETITIVENESS.— 
"(i) IN GENERAL.—Notwithstanding any other provi- Exports. 
sion of law, whenever, during the period beginning Cooperative 
August 1,1991, and ending July 31,1996, the prevailing agreements. 
world market price for a class of rice (adjusted to 
United States quality and location), as determined by 
the Secretary, is below the current loan repa5nnent 
rate for that class of rice, to make United States rice 
competitive in world markets and to maintain and 
expand exports of rice produced in the United States, 
the Commodity Credit Corporation shall make pay-
ments, through the issuance of marketing certificates, 
to persons who have entered into an agreement with 
the Commodity Credit Corporation to participate in the 
program established under this subparagraph. The pay-
ments shall be made in such monetary amounts and 
subject to such terms and conditions as the Secretary 
determines will msike rice produced in the United 
States available at competitive prices consistent with 
the purposes of this subparagraph. 
"(ii) VALUE.—The value of each certificate issued 
under this subparagraph shall be based on the dif-
ference between— 
"(I) the loan repayment rate for the class of rice; 
and 
"(II) the prevailing world market price for the 
class of rice, as determined by the Secretary, 
"(iii) TERMS AND CONDITIONS OF CERTIFICATES.— 
Marketing certificates issued under this subparagraph 
shall be subject to the same terms and conditions as 
certificates issued under subparagraph (C). 
"(6) SIMPLE AVERAGE PRICE.—For purposes of this section, the 
simple average price received by producers for the immediately 
preceding marketing year shall be based on the latest informa-
tion available to the Secretary at the time of the determination. 
*(b) LOAN DEFICIENCY PAYMENTS.— 
"(1) IN GENERAL.—The Secretary shall, for each of the 1991 
through 1995 crops of rice, make payments (hereafter in this 
section referred to as 'loan deficiency payments') available to 
producers who, although eligible to obtain a loan or purchase 
agreement under subsection (a), agree to forgo obtaining the 
loan or agreement in return for pajonents under this subsection. 
"(2) COMPUTATION.—A pa5mient under this subsection shall be 
computed by multiplying— 
"(A) the loan payment rate; by 
"(B) the quantity of rice the producer is eligible to place 
under loan (or obtain a purchgise agreement) but for which 
the producer forgoes obtaining the loan or agreement in 
return for payments under this subsection. 
"(3) LOAN PAYMENT RATE.—For purposes of this subsection, 
the loan pajonent rate shall be the amount by which— 
104 STAT. 3446 
PUBLIC LAW 101-624—NOV. 28, 1990 
"(A) the loan level determined for the crop under subsec-
tion (a); exceeds 
"(B) the level at which a loan may be repaid under 
• subsection (a). 
"(4) MARKETING CERTIFICATES.—The Secretary may make up 
to one-half the amount of a pajonent under this subsection 
available in the form of marketing certificates, subject to the 
terms and conditions provided in subsection (aX5XC). 
"(c) PAYMENTS.— 
"(1) DEFICIENCY PAYMENTS.— 
"(A) IN GENERAL.—The Secretary shall make available to 
producers payments (hereafter in this section referred to as 
'deficiency payments') for each of the 1991 through 1995 
crops of rice in an amount computed by multiplying— 
"(i) the payment rate; by 
"(ii) the payment acres for the crop; by 
"(iii) the farm program payment jdeld established for 
the crop for the farm. 
"(B) PAYMENT RATE.— 
"(i) PAYMENT RATE FOR 1991 THROUGH 1993 CROPS.— 
The payment rate for each of the 1991 through 1993 
crops of rice shall be the amount by which the estab-
lished price for the crop of rice exceeds the higher of— 
"(I) the national average market price received 
by producers during the first 5 months of the 
marketing year for the crop, as determined by the 
Secretary; or 
"(II) the loan level determined for the crop, 
"(ii) PAYMENT RATE OF 1994 AND 1995 CROPS.—The 
payment rate for the 1994 and 1995 crops of rice shall 
be determined in accordance with clause (i). 
"(ii) MINIMUM ESTABLISHED PRICE.—The established 
price for rice shall not be less than $10.71 per hundred-
weight for each of the 1991 through 1995 crops. 
"(C) PAYMENT ACRES.—Payment acres for a crop shall be 
the lesser of— 
"(i) the number of acres planted to the crop for 
harvest within the permitted acreage; or 
"(ii) 100 percent of the crop acreage base for the crop 
for the farm less the quantity of reduced acreage (as 
determined under subsection (eX2XD)). 
"(D) 50/92 PROGRAM.— 
"(i) IN GENERAL.—If an acreage limitation program 
under subsection (eX2) is in effect for a crop of rice and 
the producers on a farm devote a portion of the maxi-
mum pajrment acres for rice as calculated under 
subparagraph (CXii) for equal to more than 8 percent of 
such rice acreage of the farm for the crop to conserva-
tion uses (except as provided in subparagraph (E))— 
"(I) such portion of the maximum pa5anent acres 
in excess of 8 percent of such acreage devoted to 
conservation uses (except as provided in subpara-
graph (E)) shall be considered to be planted to rice 
for the purpose of determining the acreage on the 
farm required to be devoted to conservation uses in 
accordance with subsection (eX2XD); and 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3447 
"(II) the producers shall be eligible for payments 
under this paragraph with respect to such acreage, 
subject to the compliance of the producers with 
clause (ii). 
"(ii) MINIMUM PLANTING REQUIREMENT.—To be eli-
gible for payments under clause (i), except as provided 
in clauses (iv) and (v), the producers on a farm must 
actually plant rice for harvest on at least 50 percent of 
the maximum payment acres for rice for the farm. 
"(iii) DEFICIENCY PAYMENTS.—Notwithstanding any 
other provision of this section, any producer who de-
votes a portion of the maximum payment acres for rice 
for the farm to conservation uses (or other uses as 
provided in subparagraph (E)) under this subparagraph 
shall receive deficiency payments on the acreage that is 
considered to be planted to rice and eligible for pay-
ments under this subparagraph for the crop at a per-
hundredweight rate established by the Secretary, 
except that the rate may not be established at less than 
the projected deficiency pajonent rate for the crop, as 
determined by the Secretary. Such projected pajonent 
rate for the crop shall be announced by the Secretary 
prior to the period during which rice producers may 
agree to participate in the program for the crop. 
"(iv) QUARANTINES.—If a State or local agency has 
imposed in an area of a State or county a quarantine on 
the planting of rice for harvest on farms in the area, 
the State committee established under section 8(b) of 
the Soil Conservation and Domestic Allotment Act (16 
U.S.C. 590h(b)) may recommend to the Secretary that 
payments be made under this p£u*agraph, without 
regard to the requirement imposed under clause (ii), to 
producers in the area who were required to forgo the 
planting of rice for harvest on acreage to alleviate or 
eliminate the condition requiring the quarantine. If the 
Secretary determines that the condition exists, the Sec-
retary may make payments under this paragraph to 
the producers. To be eligible for payments under this 
clause, the producers must devote the acreage to con-
servation uses (except as provided in subparagraph (E)). 
"(v) PREVENTED PLANTING.—If an acreage limitation 
program under subsection (e) is in effect for any crop of 
rice and if the Secretary determines that producers on 
a farm are prevented from planting the acreage in-
tended for rice to rice because of drought, fiood, or 
other natural disaster, or other condition beyond the 
control of the producers, the Secretary shall make 
available to such producers payments under this 
subparagraph without regard to the requirement im-
posed under clause (ii). To be eligible for pajmients 
under this clause, the producers must devote the acre-
age to conservation uses (except as provided in subpara-
graph (E)). Any such acreage shall be considered to be 
planted to rice. 
"(vi) CROP ACREAGE AND PAYMENT YIELD.—The rice 
crop acreage base and rice farm program payment 
jdeld of the farm shall not be reduced due to the fact 
104 STAT. 3448 
PUBLIC LAW 101-624—NOV. 28, 1990 
that a portion of the permitted rice acreage of the farm 
was devoted to cpnserving uses (except as provided in 
subparEigraph (E)) under this subparagraph. 
"(vii) LIMITATION.—Other than as provided in clauses 
(i) through (vi), payments may not be made under this 
paragraph for any crop on a greater acreage than the 
acreage actually planted to rice. 
"(viii) CONSERVATION USE ACREAGE UNDER OTHER PRO-
GRAMS.—Any acreage considered to be planted to rice 
in accordance with clauses (i) and (vi) may not also be 
designated as conservation use acreage for the purpose 
of fulfilling any provisions under any acreage limita-
tion or land diversion progrEmi requiring that the 
producers devote a specified acreage to conservation 
uses. 
"(E) ALTERNATIVE CROPS.—The Secretary may permit, 
subject to such terms and conditions as the Secretary may 
prescribe, all or any part of acreage otherwise required to 
be devoted to conservation uses as a condition of qualifjdng 
for pa3mients under subparagraph (D) to be devoted to 
sweet sorghum, guar, sesame, castor beans, crambe, 
plantago ovato, triticale, rye, mung beans, commodities for 
which no substantial domestic production or market exists 
but that could yield industrial raw material being imported, 
or likely to be imported, into the United States, or commod-
ities grown for experimental purposes (including kenaf and 
milkweed), subject to the following sentence. The Secretary 
may permit the acreage to be devoted to the production 
only if the Secretary determines that— 
"(i) the production is not likely to increase the cost of 
the price support program and will not affect farm 
income adversely; and 
"(ii) the production is needed to provide an adequate 
supply of the commodity, or, in the case of commodities 
for which no substantial domestic production or market 
exists but that could yield industrial raw materials, the 
production is needed to encourage domestic manufac-
ture of the raw material and could lead to increased 
industrial use of the raw material to the long-term 
benefit of United States industry. 
"(F) REDUCTION FOR DISASTER PAYMENTS.—The total quan-
tity of rice on which payments would otherwise be payable 
to a producer on a farm for any crop under this paragraph 
shall be reduced by the quantity on which any disaster 
payment is made to the producer for the crop under para-
graph (2). 
"(2) DISASTER PAYMENTS.— 
"(A) 
PREVENTED 
PLANTING.—Except as provided in 
subparagraph (C), if the Secretary determines that the 
producers on a farm are prevented from planting any por-
tion of the acreage intended for rice to rice or other 
nonconserving crops because of drought, flood, or other 
natural disaster, or other condition beyond the control of 
the producers, the Secretary shall make a prevented plant-
ing disaster pajonent to the producers in an amount equal 
to the product obtained by multipl3dng— 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3449 
"(i) the number of acres so affected but not to exceed 
the acreage planted to rice for harvest (including any 
acreage that the producers were prevented from plant-
ing to rice or other nonconserving crops in lieu of rice 
because of drought, flood, or other natural disaster, or 
other condition beyond the control of the producers) in 
the immediately preceding year; by 
"(ii) 75 percent of the farm program payment )deld 
established for the farm by the Secretary; by 
"(iii) a pajmient rate equal to 33 V
s percent of the 
established price for the crop. 
"(B) REDUCED YIELDS.—Except as provided in subpara-
graph (C), if the Secretary determines that because of 
drought, flood, or other natural disaster, or other condition 
beyond the control of the producers, the total quantity of 
rice that the producers are able to harvest on any farm is 
less than the result of multipl3dng 75 percent of the farm 
program payment jdeld established by the Secretary for the 
crop by the acreage planted for harvest for the crop, the 
Secretary shall make a reduced jdeld disaster pa3mient to 
the producers at a rate equal to 33 V
s percent of the estab-
lished price for the crop for the deficiency in production 
below 75 percent for the crop. 
"(C) CROP INSURANCE.—Producers on a farm shall not be 
eligible for— 
"(i) prevented planting disaster pajnnents under 
subparagraph (A), if prevented planting crop insurance 
is available to the producers under the Federal Crop 
Insurance Act (7 U.S.C. 1501 et seq.) with respect to the 
rice acreage of the producers; or 
"(ii) reduced jdeld disaster payments under subpara-
graph (B), if reduced yield crop insurance is available to 
the producers under such Act with respect to the rice 
acreage of the producers. 
"(D) ADMINISTRATION.— 
"(i) 
ECONOMIC 
EMERGENCIES.—Notwithstanding 
subparagraph (C), the Secretary may make a disaster 
pajnnent to the producers on a farm under this para-
graph if the Secretary determines that— 
"(I) as the result of drought, flood, or other natu-
ral disaster, or other condition beyond the control 
of the producers, the producers have suffered 
substantial losses of production either from being 
prevented 
from 
planting 
rice 
or 
other 
nonconserving crops or from reduced 3aelds; 
"(II) the losses have created an economic emer-
gency for the producers; 
"(III) crop insurance indemnity payments under 
the Federal Crop Insurance Act (7 U.S.C. 1501 et 
seq.) and other forms of assistance made available 
by the Federal Government to the producers for 
the losses are insufficient to alleviate the economic 
emergency; and 
"(IV) additional assistance must be made avail-
able to the producers to alleviate the economic 
emergency. 
104 STAT. 3450 
PUBLIC LAW 101-624—NOV. 28, 1990 
"(ii) ADJUSTMENTS.—The Secretary may make such 
adjustments in the amount of payments made available 
under this paragraph with respect to an individual 
farm as necessary to ensure the equitable allotment of 
the payments among producers, taking into account 
other forms of Federal disaster assistance provided to 
the producers for the crop involved. 
"(d) PAYMENT YIELDS.—The farm program pa3anent yields for 
farms for each crop of rice shall be determined under title V. 
"(e) ACREAGE REDUCTION PROGRAMS.— 
"(1) IN GENERAL.— 
"(A) ESTABLISHMENT.—Notwithstanding any other provi-
sion of this Act, if the Secretary determines that the total 
supply of rice, in the absence of an acreage limitation 
program, will be excessive taking into account the need for 
an adequate carry-over to maintain reasonable and stable 
supplies and prices and to meet a national emergency, the 
Secretary may provide for any crop of rice an acreage 
limitation program as described in paragraph (2). 
"(B) AGRICULTURAL RESOURCES CONSERVATION PROGRAM.— 
In making a determination under subparagraph (A), the 
Secretary shall take into consideration the number of acres 
placed in the agricultural resources conservation program 
established under subtitle D of title XII of the Food Security 
Act of 1985 (16 U.S.C. 3831 et seq.). 
"(C) ANNOUNCEMENTS.—If the Secretary elects to imple-
ment an acreage limitation program for any crop year, the 
Secretary shall announce any such program not later than 
January 31 of the calendar year in which the crop is 
harvested, except that in the case of the 1991 crop, the 
Secretary shall announce the program as soon as prac-
ticable after the date of enactment of this section. 
Securities. 
"(D) CARRY-OVER.—The Secretary shall carry out an acre-
age limitation program described in paragraph (2) for a crop 
of rice in a manner that will result in carry-over stocks 
equal to 16.5 to 20 percent of the simple average of the total 
disappearance of rice for each of the 3 marketing years 
preceding the year for which the announcement is made. 
For the purpose of this subparagraph, the term 'total dis-
appearance' means all rice utilization, including total 
domestic, total export, and total residual disappearance. 
"(2) ACREAGE LIMITATION PROGRAM.— 
"(A) 
PERCENTAGE REDUCTIONS.—Except as provided in 
paragraph (3), if a rice acreage limitation program is an-
nounced under paragraph (1), such limitation shall be 
achieved by applying a uniform percentage reduction (from 
0 to 35 percent) to the rice crop acreage base for the crop for 
each rice-producing farm. 
"(B) COMPUANCE.—Except as provided in section 504, 
producers who knowingly produce rice in excess of the 
permitted rice acreage for the farm, as established in 
accordance with subparagraph (A), shall be ineligible for 
rice loans, purchases, and payments with respect to that 
farm. 
"(C) CROP ACREAGE BASES.—Rice crop acreage bases for 
each crop of rice shall be determined under title V. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3451 
"(D) 
ACREAGE 
DEVOTED 
TO CONSERVATION 
USES.—A Regulations. 
number of acres on the farm shall be devoted to conserva-
tion uses, in accordance with regulations issued by the 
Secretary. Such number shall be determined by multipljdng 
the rice crop acreage base by the percentage reduction 
required by the Secretary. The number of acres so deter-
mined is hereafter in this subsection referred to as 'reduced 
acreage'. The remaining acreage is hereafter in this subsec-
tion referred to as 'permitted acreage'. Permitted acreage 
may be adjusted by the Secretary as provided in paragraph 
(3) and in section 504. 
"(E) 
INDIVIDUAL FARM PROGRAM ACREAGE.—Except as 
otherwise provided in subsection (c), the individual farm 
program acreage shall be the acreage planted on the farm 
to rice for harvest within the permitted rice acreage for the 
farm as established under this paragraph. 
"(F) PLANTING DESIGNATED CROPS ON REDUCED ACREAGE.— 
"(i) DEFINITION OF DESIGNATED CROP.—As used in this 
subparagraph, the term 'designated crop' means a crop 
defined in section 504(bXl), excluding any program crop 
as defined in section 502(3). 
"(ii) IN GENERAL.—Subject to clause (iii), the Sec-
retary may permit producers on a farm to plant a 
designated crop on no more than one-half of the re-
duced acreage on the farm. 
"(iii) LIMITATIONS.—If the producers on a farm elect 
to plant a designated crop on reduced acreage under 
this subparagraph— 
"(I) the amount of the deficiency payment that 
the producers are otherwise eligible to receive 
under subsection (c) shall be reduced, for each acre 
(or portion thereof) that is planted to the des-
ignated crop, by E
m amount equal to the deficiency 
pa3mient that would be made with respect to a 
number of acres of the crop that the Secretary 
considers appropriate, except that if the producers 
on the farm are participating in a program estab-
lished for more than one program crop, the amount 
of the reduction shall be determined by prorating 
the reduction based on the acreage planted or 
considered planted on the farm to all of such pro-
gram crops; and 
"(II) the Secretary shall ensure that reductions 
in deficiency pajmients under subclause (I) are 
sufficient to ensure that this subparagraph will 
result in no additional cost to the Commodity 
Credit Corporation. 
'(3) TARGETED OPTION PAYMENTS.— 
"(A) IN GENERAL.—Notwithstanding any other provision 
of this section, if the Secretary implements an acreage 
limitation program with respect to any of the 1991 through 
1995 crops of rice and announces an acreage limitation 
percentage of 20 percent or less, the Secretary may make 
available to producers on a farm who do not receive pay-
ments under subsection (cXlXD) for such crop on the farm, 
adjustments in the level of deficiency pajonents that would 
otherwise be made available to the producers if the produc-
39-194 O - 91 - 5 : QL 3 Part 5 
104 STAT. 3452 
PUBLIC LAW 101-624—NOV. 28, 1990 
ers exercise the payment options provided in this para-
graph. 
"(B) PAYMENT OPTIONS.—If the Secretary elects to carry 
out this paragraph, the Secretary shall make the pajmient 
options specified in subparagraphs (C) and (D) available to 
producers who agree to make adjustments in the quantity 
of acreage diverted from the production of rice under an 
acreage limitation program in accordance with this para-
graph. 
"(C) INCREASED ACREAGE UMITATION OPTION.— 
"(i) INCREASE IN ESTABLISHED PRICE.—If the Secretary 
elects to carry out this paragraph, a producer shall be 
eligible to receive an increase in the established price 
for rice under clause (ii) if the producer agrees to an 
increase in the acreage limitation percentage to be 
applied to the producers' rice acreage base above the 
acreage limitation percentage announced by the Sec-
retary. 
"(ii) METHOD OF CALCULATION.—For the purposes of 
calculating deficiency pajmients to be made avEulable to 
producers who participate in the program under this 
par£igraph, the Secretary shall increase the established 
price for rice by an amount determined by the Sec-
retary, but not less than 0.5 percent, nor more than 1 
percent, for each 1 percentage point increase in the 
acreage limitation percentage applied to the producers' 
rice acreage base. 
"(iii) LIMITATION.—The acreage limitation percentage 
to be applied to the producers' rice acreage base shall 
not be increased by more than 5 percentage points 
above the acreage limitation percentage announced by 
the Secretary. 
"(iv) ADJUSTMENT FOR UNDERPLANTINGS.—In deter-
mining the increased acreage limitation percentage 
that is applied to the producer's rice acreage base 
under this paragraph, the Secretary shall exclude an 
eunount of acreage equal to the average difference be-
tween the producer's permitted rice acreage and the 
acreage actually planted (including acreage devoted to 
conserving uses under subsection (cXlXD)) to rice for 
harvest during the previous 2 years. 
"(D) DECREASED ACREAGE LIMITATION OPTION.— 
"(i) 
DECREASE IN ACREAGE LIMITATION REQUIRE-
MENT.—If the Secretary elects to carry out this para-
graph, a producer shall be eligible to decrease the 
acreage limitation percentage applicable to the produc-
ers' rice acreage base (as announced by the Secretary) 
if the producer agrees to a decrease in the established 
price for rice under clause (ii) for the purpose of cal-
culating deficiency payments to be made available to 
the producer. 
"(ii) METHOD OF CALCULATION.—For the purposes of 
calculating deficiency payments to be made available to 
producers who choose the option set forth in this 
subparagraph, the Secretary shall decrease the estab-
lished price for rice by an amount to be determined by 
the Secretary, but not less than 0.5 percent, nor more 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3453 
than 1 percent, for each 1 percentage point decrease in 
the acreage limitation percentage applied to the 
producers' rice acreage base. 
"(iii) LIMITATION.—A producer may not choose to 
decrease the acreage limitation percentage applicable 
to the producers' rice acreage base under this para-
graph by more than one-half of the announced acreage 
limitation percentage. 
"(E) PARTICIPATION AND PRODUCTION EFFECTS.—Notwith-
standing any other provision of this paragraph, the Sec-
retary shall, to the extent practicable, ensure that the 
program provided for in this paragraph does not have a 
significant effect on program participation or total produc-
tion £ind shall be offered in such a manner that the Sec-
retary determines will result in no additional budget out-
lays. The Secretary shall provide an analysis of the Sec-
retary's determination to the Committee on Agriculture of 
the House of Representatives and the Committee on Agri-
culture, Nutrition, and Forestry of the Senate. 
'(4) ADMINISTRATION.— 
"(A) PROTECTION FROM WEEDS AND EROSION.—The regula-
tions issued by the Secretary under paragraph (2) with 
respect to acreage required to be devoted to conservation 
uses shall assure protection of the acreage from weeds and 
wind and water erosion. 
"(B) ANNUAL OR PERENNIAL COVER.— 
"(i) IN GENERAL.—Except as provided in paragraph 
(2), a producer who participates in an acreage reduction 
program established for a crop of rice under this 
subsection shall be required to plant to an annual or 
perennial cover 50 percent (or more, at the option of 
the producer) of the acreage that is required to be 
removed from the production of rice, but not to exceed 
5 percent (or more, at the option of the producer) of the 
crop acreage base established for the crop. This require-
ment shall not apply with respect to arid areas (includ-
ing summer fallow areas), as determined by the Sec-
retary. 
"(ii) MULTIYEAR PROGRAM.— 
"(I) CosT-sHARE ASSISTANCE.—If a producer elects 
to establish a perennial cover capable of improving 
water quality or wildlife habitat on the acreage, 
the Commodity Credit Corporation shall m ^ e 
available cost-share assistance for 25 percent of the 
approved cost of establishing the cover on not more 
than 50 percent of the acreage that is required to 
be diverted from production, but not to exceed 5 
percent (or more, at the option of the producer) of 
the crop acreage base established for a crop. 
"(II) AGREEMENT OF PRODUCER.—If a producer 
elects to establish a perennial cover on the acreage 
under this subparagraph and receives cost-share 
assistance from the Corporation with respect to the 
cover, the producer, under such terms and condi-
tions as may be prescribed by the Secretary, taking 
into consideration guidelines established by the 
State technical committees established in subtitle 
104 STAT. 3454 
PUBLIC LAW 101-624—NOV. 28, 1990 
Regulations. 
G of title XII of the Food Security Act of 1985, shall 
agree to maintain the perennial cover for a mini-
mum of 3 years, 
"(iii) CONSERVING CROPS.—The Secretary may permit, 
subject to such terms and conditions as the Secretary 
may prescribe, all or any part of the acreage to be 
devoted to sweet sorghum, guar, sesame, castor beans, 
crambe, plantago ovato, triticale, rye, mung beans, 
milkweed, or other commodity, if the Secretary deter-
mines that the production is needed to provide an 
adequate supply of the commodities, is not likely to 
increase the cost of the price support program, and will 
not affect farm income adversely. 
"(C) HAYING AND GRAZING.— 
"(i) IN GENERAL.—Except as provided in clause (ii), 
ha3dng and grazing of reduced acreage, acreage devoted 
to a conservation use under subsection (cXlXD), and 
acreage diverted from production under a land diver-
sion program established under this section shall be 
permitted, except during any consecutive 5-month 
period that is established by the State committee estab-
lished under section 8(b) of the Soil Conservation and 
Domestic Allotment Act (16 U.S.C. 590h(b)) for a State. 
The 5-month period shall be established during the 
period beginning April 1, and ending October 31, of a 
year. 
"(ii) NATURAL DISASTERS.—In the case of a natural 
disaster, the Secretary may permit unlimited haying 
and grazing on the acreage. The Secretary may not 
exclude irrigated or irrigable acreage not planted in 
alfalfa when exercising the authority under this clause, 
"(D) WATER STORAGE USES.— 
"(i) IN GENERAL.—The regulations issued by the Sec-
retary under paragraph (2) with respect to acreage 
required to be devoted to conservation uses shall pro-
vide that land that has been converted to water storage 
uses shall be considered to be devoted to conservation 
uses if the land was devoted to wheat, feed grains, 
cotton, rice, or oilseeds in at least 3 of the immediately 
preceding 5 years. The land shall be considered to be 
devoted to conservation uses for the period that the 
land remains in water storage uses, but not to exceed 5 
years subsequent to its conversion to water storage 
uses. 
"(ii) LIMITATIONS.—Land converted to water storage 
uses for the purposes of this subparagraph may not be 
devoted to any commercial use, including commercial 
fish production. The water stored on the land may not 
be ground water. The farm on which the land is located 
must have been irrigated with ground water during at 
least 1 of the preceding 5 crop years. 
*(5) LAND DIVERSION PROGRAM.— 
"(A) IN GENERAL.—The Secretary may make Igmd diver-
sion payments to producers of rice, whether or not an 
acreage limitation program for rice is in effect, if the 
Secretary determines that the land diversion pajrments are 
necessary to assist in adjusting the total national acreage of 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3455 
rice to desirable goals. The land diversion pajmaents shall 
be made to producers who, to the extent prescribed by the 
Secretary, devote to approved conservation uses an acreage 
of cropland on the farm in accordance with land diversion 
contracts entered into by the Secretary with the producers. 
"(B) AMOUNTS.—The amounts payable to producers under Government 
land diversion contracts may be determined through the contracts. 
submission of bids for the contracts by producers in such 
manner as the Secretary may prescribe or through such 
other means as the Secretary determines appropriate. In 
determining the acceptability of contract offers, the Sec-
retary shall take into consideration the extent of the diver-
sion to be undertaken by the producers and the productivity 
of the acreage diverted. 
"(C) LIMITATION ON DIVERTED ACREAGE.—The Secretary 
shall limit the total acreage to be diverted under agree-
ments in any county or local community so as not to affect 
adversely the economy of the county or local community. 
"(6) CONSERVATION PRACTICES.— 
"(A) WILDLIFE FOOD PLOTS OR HABITAT.—The reduced acre-
age and additional diverted acreage may be devoted to 
wildlife food plots or wildlife habitat in conformity with 
standards established by the Secretary in consultation with 
wildlife agencies. The Secretary may pay an appropriate 
share of the cost of practices designed to carry out the 
purposes of this subparagraph. 
"(B) PUBLIC ACCESS.—The Secretary may provide for an 
additional pa3mient on the acreage in an amount deter-
mined by the Secretary to be appropriate in relation to the 
benefit to the general public if the producer agrees to 
permit, without other compensation, access to all or such 
portion of the farm, as the Secretary may prescribe, by the 
general public, for hunting, trapping, fishing, and hiking, 
subject to applicable State and Federal regulations. 
"(7) PARTICIPATION AGREEMENTS.— 
"(A) IN GENERAL.—Producers on a farm desiring to 
participate in the program conducted under this subsection 
shall execute an agreement with the Secretary providing 
for the participation not later than such date as the Sec-
retary may prescribe. 
"(B) MODIFICATION OR TERMINATION.—The Secretary may, 
by mutual agreement with producers on a farm, modify or 
terminate any such agreement if the Secretary determines 
the action necessary because of an emergency created by 
drought or other disaster or to prevent or alleviate a short-
age in the supply of agricultural commodities. The Sec-
retary may mcxlify the agreement under this subparagraph 
for the purpose of alleviating a shortage in the supply of 
agricultural commodities only if there has been a signifi-
cant change in the estimated stocks of the commodity since 
the Secretary announced the final terms and conditions of 
the program for the crop of rice. 
"(f) INVENTORY REDUCTION PAYMENTS.— 
"(1) IN GENERAL.—The Secretary may, for each of the 1991 
through 1995 crops of rice, make payments available to produc-
ers who meet the requirements of this subsection. 
104 STAT. 3456 
PUBLIC LAW 101-624—NOV. 28, 1990 
"(2) FORM.—The payments may be made in the form of 
marketing certificates. 
"(3) PAYMENTS.— 
"(A) IN GENERAL.—Payments under this subsection shall 
be determined in the same mgmner as provided in subsec-
tion Ot)). 
"(B) QUANTITY OF RICE MADE AVAILABLE.—The quantity of 
rice to be made available to a producer under this subsec-
tion shall be equal in value to the pajmients so determined 
under this subsection. 
"(4) EuGiBiLiTY.—A producer shall be eligible to receive a 
pa5anent under this subsection for a crop if the producer— 
"(A) agrees to forgo obtaining a loan or purchase agree-
ment under subsection (a); 
"(B) agrees to forgo receiving pajonents under subsection 
(0; 
"(C) does not plant rice for harvest in excess of the crop 
acreage base reduced by one-half of any acreage required to 
be diverted from production under subsection (e); and 
"(D) otherwise complies with this section. 
"(g) EQUITABLE RELIEF.— 
"(1) LOANS AND PAYMENTS.—If the failure of a producer to 
comply fully with the terms and conditions of the program 
conducted under this section precludes the making of loans, 
purchases, and payments, the Secretary may, nevertheless, 
make such loans, purchases, and pajonents in such amounts as 
the Secretary determines are equitable in relation to the 
seriousness of the failure. The Secretary may consider whether 
the producer made a good faith effort to comply fully with the 
terms and conditions of the program in determining whether 
equitable relief is warranted under this paragraph. 
"(2) DEADUNES AND PROGRAM REQUIREMENTS.—The Secretary 
may authorize the county and State committees established 
under section 8(b) of the Soil Conservation and Domestic Allot-
ment Act (16 U.S.C. 590h(b)) to waive or modify deadlines and 
other program requirements in cases in which lateness or fail-
ure to meet the other requirements does not affect adversely the 
operation of the program. 
"(h) REGULATIONS.—The Secretary may issue such regulations as 
the Secretary determines necessary to carry out this section. 
"(i) COMMODITY CREDIT CORPORATION.—The Secretary shall carry 
out the program authorized by this section through the C!ommodity 
Credit Corporation. 
"(j) ASSIGNMENT OF PAYMENTS.—The provisions of section 8(g) of 
the Soil Conservation and Domestic Allotment Act (16 U.S.C. 
590h(g)) (relating to assignment of payments) shall apply to pay-
ments under this section. 
"(k) SHARING OF PAYMENTS.—The Secretary shall provide for the 
sharing of pa3mients made under this section for any farm among 
the producers on the farm on a fair and equitable basis. 
"(1) TENANTS AND SHARECROPPERS.—The Secretary shall provide 
adequate safeguards to protect the interests of tenants and share-
croppers. 
'Xm) CROSS-COMPLIANCE.— 
"(1) IN GENERAL.—Compliance on a farm with the terms and 
conditions of any other commodity program, or compliance with 
crop acreage base requirements for any other commodity, may 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3457 
not be required as a condition of eligibility for loans, purchases, 
or pa3mients under this section. 
"(2) COMPLIANCE ON OTHER FARMS.—The Secretary may 
not 
require producers on a farm, as a condition of eligibility for 
loans, purchases, or pajnnents under this section for the farm, to 
comply with the terms and conditions of the rice program with 
respect to any other farm operated by the producers. 
"(n) CROPS.—Notwithstanding any other provision of law, this 
section shall be effective only for the 1991 through 1995 crops of 
rice.". 
TITLE VII—OILSEEDS 
SEC. 701. LOANS AND PAYMENTS FOR OILSEEDS FOR 1991 THROUGH 1995 
MARKETING YEARS. 
Title II of the Agricultural Act of 1949 (7 U.S.C. 1446 et seq.) is 
amended— 
(1) in the matter preceding subsection (a) of section 201 (7 
U.S.C. 1446), by striking "tung nuts," and inserting the follow-
ing: "oilseeds (including soybeans, sunflower seed, canola, 
rapeseed, safflower, flaxseed, mustard seed, and such other 
oilseeds as the Secretary may determine),"; and 
(2) by adding at the end the following new section: 
"SEC. 205. LOANS AND PAYMENTS FOR OILSEEDS FOR 1991 THROUGH 1995 7 USC 1446f. 
MARKETING YEARS. 
"(a) DEFINITION OF OILSEEDS.—As used in this section, the term 
'oilseeds' means soybeans, sunflower seed, canola, rapeseed, saf-
flower, flaxseed, mustard seed, and such other oilseeds as the Sec-
retary may determine. 
"(b) IN GENERAL.—The Secretary shall support the price of oiP 
seeds through nonrecourse loans to producers on a farm for oilseeds 
produced on the farm in each of the 1991 through 1995 marketing 
years as provided in this section. 
"(c) LOAN LEVEL.—The loan level for each of the 1991 through 
1995 crops of— 
"(1) soybeans shall not be less than $5.02 per bushel; 
"(2) sunflower seed, canola, rapeseed, safflower, mustard seed, 
and flaxseed shall not be less than $0,089 per pound; and 
"(3) other oilseeds shall be established at such level as the 
Secretary determines is fair and reasonable in relation to the 
loan level available for soybeans, except that, in the case of 
cottonseed, in no event less thaii the level established for soy-
beans on a per-pound basis for the same crop year. 
"(d) MARKETING LOAN PROVISIONS.— 
"(1) IN GENERAL.—The Secretary shall permit a producer to 
repay a loan made under this section for a crop— 
"(A) at a level that is the lesser of— 
"(i) the loan level determined for the crop; or 
"(ii) the prevailing world market price for the ap-
plicable oilseed (adjusted to United States quality and 
location), as determined by the Secretary; or 
"(B) such other level (not in excess of the loan level 
determined for the crop) that the Secretary determines 
will— 
"(i) minimize potential loan forfeitures; 
104 STAT. 3458 
PUBLIC LAW 101-624—NOV. 28, 1990 
"(ii) minimize the accumulation of oilseed stocks by 
the Federal Government; 
"(iii) minimize the cost incurred by the Federal 
Government in storing oilseeds; and 
"(iv) allow oilseeds produced in the United States to 
be marketed freely and competitively, both domesti-
cally and internationally. 
Regulations. 
"(2) PREVAIUNG WORLD MARKET PRICE.—The Secretary shall 
prescribe by regulation— 
"(A) a formula to define the prevailing world market 
price for oilseeds (adjusted to United States quality and 
location); and 
"(B) a mechanism by which the Secretary shall announce 
periodically the prevailing world market price for oilseeds 
(adjusted to United States quality and location). 
"(e) LOAN DEFICIENCY PAYMENT.— 
"(1) IN GENERAL.—The Secretary shall, for each of the 1991 
through 1995 crops of oilseeds, make payments available to 
producers who, although eligible to obtain a loan under subsec-
tion (b), agree to forgo obtaining the loan in return for payments 
under this subsection. 
"(2) COMPUTATION.—A pajonent under this subsection shall be 
computed by multiplying— 
"(A) the loan pa)rment rate; by 
"(B) the quantity of oilseeds the producer is eligible to 
place under loan but for which the producer forgoes obtain-
ing the loan in return for pa5anents under this subsection. 
"(3) LOAN PAYMENT RATE.—For purposes of this subsection, 
the loan pajonent rate shall be the amount by which— 
"(A) the loan level determined for the crop under subsec-
tion (c); exceeds 
"(B) the level at which a loan may be repaid under 
subsection (d). 
"(4) MARKETING CERTIFICATES.— 
"(A) IN GENERAL.—The Secretary may make payments 
under this section available in the form of certificates 
redeemable for any agricultural commodity owned by the 
Commodity Credit Corporation. 
"(B) MINIMAL OILSEED STOCKS.—The Secretary shall make 
certificates available under subparagraph (A) in such a 
manner so as to minimize the accumulation of oilseeds 
stocks. 
"(f) MARKETING YEAR.—For purposes of this section, the market-
ing year for— 
"(1) soybeans shall be the 12-month period beginning on 
September 1 and ending on August 31; and 
"(2) other oilseeds shall be prescribed by the Secretary by 
regulation. 
"(g) ANNOUNCEMENTS.— 
"(1) IN GENERAL.—Except as provided in paragraph (2), the 
Secretary shall make an announcement of the loan level for the 
crop not later than November 15 prior to the calendar year in 
which the crop is harvested. 
"(2) 1991 CROP.—In the case of the 1991 crop, the Secretary 
shall make an announcement of the loan level for the crop as 
soon as practicable after the date of enactment of this section. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3459 
"(h) LOAN MATURITY.—A loan made for a crop of oilseeds under 
this section shall mature on the last day of the 9th month following 
the month the application for the loan is made. 
"(i) OTHER TERMS AND CONDITIONS.—Notwithstanding any other 
provision of law— 
"(1) the Secretary shall not require participation in any 
production adjustment program for oilseeds or any other 
commodity as a condition of eligibility for price support for 
oilseeds; 
"(2) the Secretary may not authorize pa3anents to producers 
to cover the cost of storing oilseeds; and 
"(3) oilseeds may not be considered an eligible commodity for 
any reserve program, 
"(j) REGULATIONS.—The Secretary may issue such regulations as 
the Secretary determines necessary to carry out this section. 
"(k) COMMODITY CREDIT CORPORATION.—The Secretary shall carry 
out the program authorized by this section through the Commodity 
Credit Corporation. 
"G) ASSIGNMENT OF PAYMENTS.—The provisions of section 8(g) of 
the Soil Conservation and Domestic Allotment Act (16 U.S.C. 
590h(g)) (relating to assignment of pajnnents) shall apply to pay-
ments under this section. 
"(m) CROPS.—Notwithstanding any other provision of law, this 
section shall be effective only for the 1991 through 1995 crops of 
oilseeds.". 
TITLE VIII—PEANUTS 
SEC. 801. SUSPENSION OF MARKETING QUOTAS AND ACREAGE ALLOT-
MENTS. 
The following provisions of the Agricultural Adjustment Act of 
1938 shall not be applicable to the 1991 through 1995 crops of 
peanuts: 
(1) Subsections (a) through 0') of section 358 (7 U.S.C. 1358(a)- 7 USC1358 note. 
O')). 
(2) Subsections (a) through (h) of section 358a (7 U.S.C. 7 USC 1358a 
1358a(a)-(h)). 
note. 
(3) Subsections (a), (b), (d), and (e) of section 359 (7 U.S.C. 1359 7 use 1359 note. 
(a),(b),(d),and(e)). 
(4) Part I of subtitle C of title III (7 U.S.C. 1361 et seq.) 
(5) Section 371 (7 U.S.C. 1371). 
SEC. 8
0
2
. 
NATIONAL 
POUNDAGE QUOTAS 
AND 
ACREAGE 
ALLOTMENTS. 
The Agricultural Adjustment Act of 1938 is amended by inserting 
after section 358 the following new section: 
"SEC. 3
5
8
-
1
. 
NATIONAL 
POUNDAGE 
QUOTAS 
AND 
ACREAGE 
ALLOTMENTS 
FOR 
1
9
9
1 
THROUGH 
1
9
9
5 
CROPS 
OF 
PEANUTS. 
"(a) NATIONAL POUNDAGE QUOTAS.— 
"(1) ESTABLISHMENT.—The national poundage quota for pea-
nuts for each of the 1991 through 1995 marketing years shall be 
established by the Secretary at a level that is equal to the 
quantity of peanuts (in tons) that the Secretary estimates will 
be devoted in each such marketing year to domestic edible, seed, 
and related uses. Notwithstanding any other provision of this 
7 USC note prec. 
1361. 
7 USC 1371 note. 
7 USC 1358-1. 
104 STAT. 3460 
PUBLIC LAW 101-624—NOV. 28, 1990 
paragraph, the national poundage quota for a marketing year 
shall not be less thsin 1,350,000 tons. 
"(2) ANNOUNCEMENT.—The national poundage quota for a 
marketing year shall be announced by the Secretary not later 
than December 15 preceding the marketing year. 
"(3) APPORTIONMENT AMONG STATES,—The national poundage 
quota established under paragraph (1) shall be apportioned 
among the States so that the poundage quota allocated to each 
State shall be equal to the percentage of the national poundage 
quota allocated to farms in the State for 1990. 
"0)) FARM POUNDAGE QUOTAS.— 
"(1) IN GENERAL.— 
"(A) EsTABUSHMENT.—A farm poundage quota for each of 
the 1991 through 1995 marketing years shall be estab-
lished— 
"(i) for each farm that had a farm poundage quota for 
peanuts for the 1990 marketing year; 
"(ii) if the poundage quota apportioned to a State 
under subsection (aX3) for any such marketing year is 
larger than the quota for the immediately preceding 
marketing year, for each other farm on which peanute 
were produced for marketing in at least 2 of the 3 
immediately preceding crop years, as determined by 
the Secretary; and 
"(iii) as approved and determined by the Secretary 
under section 358c, for each farm on which peanuts are 
produced in connection with experimental and re-
search programs. 
"(B) QUANTITY.—The farm poundage quota for each of the 
1991 through 1995 marketing years for each farm described 
in subparagraph (AXi) shall be the same as the farm pound-
age quota for the farm for the immediately preceding 
marketing year, as adjusted under paragraph (2), but not 
including— 
"(i) any increases for undermarketings from previous 
years; or 
"(ii) any increases resulting from the allocation of 
quotas voluntarily released for 1 year under para-
graph (7). 
The farm poundage quota, if any, for each of the 1991 
through 1995 marketing years for each farm described in 
subparagraph (AXii) shall be equal to the quantity of pea-
nuts allocated to the farm for the year under paragraph (2). 
"(C) TRANSFERS.—For purposes of this subsection, if the 
farm poundage quota, or any part thereof, is permanently 
transferred in accordance with section 358a or 358b, the 
receiving farm shall be considered as possessing the farm 
poundage quota (or portion thereof) of the transferring 
farm for all subsequent marketing years. 
"(2) ADJUSTMENTS.— 
"(A) ALLOCATION OF INCREASED QUOTA GENERALLY.— 
Except as provided in subparagraph (B) and subject to 
subparagraph (D), if the poundeige quota apportioned to a 
State under subsection (aX3) for any of the 1991 through 
1995 marketing years is increased over the poundage quota 
apportioned to farms in the State for the immediately 
preceding marketing year, the increase shall be allocated 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3461 
proportionately, based on farm production history for pea-
nuts for the 3 immediately preceding years, among— 
"(i) all farms in the State for each of which a farm 
poundage quota was established for the marketing year 
immediately preceding the marketing year for which 
the allocation is being made; and 
"(ii) all other farms in the State on each of which 
peanuts were produced in at least 2 of the 3 imme-
diately preceding crop years, £is determined by the 
Secretary. 
"(B) ALLOCATION OF INCREASED QUOTA IN TEXAS.— 
"(i) IN GENERAL.—In Texas, and subject to terms and 
conditions prescribed by the Secretary, beginning with 
the 1991 marketing year, 33 percent of the increased 
quota referred to in subparagraph (A) shall be allocated 
to farms having poundage quotas for the 1990 market-
ing year in any county in which the production of 
additional peanuts exceeded the total quota allocated to 
the county for the 1989 marketing year. 
"(ii) BASIS FOR ALLOCATION TO COUNTIES.—The alloca-
tion of the quota to eligible counties shall be based on 
the total production of additional peanuts in the respec-
tive counties for the 1988 crop, except that the total 
quota allocated to any county under this subparagraph 
and paragraph (6XC) shsdl not be increased by more 
than 100 percent of the basic quota Eissigned to the 
county for the 1989 marketing year if that county had 
more than 10,000 tons of quota for the 1989 marketing 
year. 
"(iii) ALLOCATION TO OTHER COUNTIES.—If the total 
quota for any such county is so increased by 100 per-
cent, all of the remaining quota percentage set aside 
under this subparagraph shall be allocated to farms in 
other counties otherwise meeting the requirements of 
this subparagraph. 
"(iv) ALLOCATION TO ELIGIBLE FARMS.—The percent-
age of increased quota in any county shall be allocated 
under this subparagraph only to quota farms from 
which additional peanuts were delivered under con-
tract with handlers for the marketing year imme-
diately preceding the marketing year for which the 
allocation is being made. The percentage of the in-
creased quota in each county shall be allocated among 
the eligible farms in the county on the following basis: 
(I) FACTOR.—A factor shall be established for 
each such eligible farm by dividing the quantity of 
additional peeinuts contracted and delivered to 
handlers from the farm by the total remaining 
peanuts produced on the farm for the marketing 
year immediately preceding the marketing year 
for which the allocation is being made. 
"(II) ALLOCATION.—Each such eligible farm shall 
be allocated the percentage of the increased quota 
for the county as its factor bears to the total of the 
factors for all eligible farms in the county. 
"(v) REMAINING PERCENTAGE.—In Texas, the remain-
ing 67 percent of the increased quota referred to in 
104 STAT. 3462 
PUBLIC LAW 101-624—NOV. 28, 1990 
subparagraph (A) shall be allocated to farms in the 
State in accordance with subparagraph (A). 
"(C) DECREASE.—If the poundage quota apportioned to a 
State under subsection (aX3) for any of the 1991 through 
1995 marketing years is decreased from the poundage quota 
apportioned to farms in the State under subsection (aX3) for 
the immediately preceding marketing year, the decrease 
shall be allocated £imong all the farms in the State for each 
of which a farm poundage quota was established for the 
marketing year immediately preceding the marketing year 
for which the allocation is being made. 
"(D) 
SPECIAL RULE ON TENANT'S SHARE OF INCREASED 
QUOTA.—Subject to terms and conditions prescribed by the 
Secretary, on farms that were leased to a tenant for peanut 
production, the tenant shall share equally with the owner 
of the farm in that percentage of the quota referred to in 
subparagraph (A) and otherwise allocated to the farm as 
the result of the tenant's production on the farm of addi-
tional peanuts. Not later than April 1 of each year or as 
soon as practicable, the tenant's share of any such quota 
shall be allocated to a farm within the county owned by the 
tenant or sold by the tenant to the owner of any farm 
within the county and permanently transferred to that 
farm. Any quota not so disposed of as provided in this 
subparagraph shall be allocated to other quota farms in the 
State under paragraph (6) as part of the quota reduced from 
farms in the State due to the failure to produce the quota. 
"(3) QUOTA NOT PRODUCED.— 
"(A) IN GENERAL.—Insofar as practicable and on such fair 
and equitable basis as the Secretary may by regulation 
prescribe, the farm poundage quota established for a farm 
for any of the 1991 through 1995 marketing years shall be 
reduced to the extent that the Secretary determines that 
the farm poundage quota established for the farm for any 2 
of the 3 marketing years preceding the marketing year for 
which the determination is being made was not produced, 
or considered produced, on the farm. 
"(B) EXCLUSIONS.—For the purposes of this paragraph, 
the farm poundage quota for any such preceding marketing 
year shall not include— 
"(i) any increases for undermarketing of quota pea-
nuts from previous years; or 
"(ii) any increase resulting from the allocation of 
quotas voluntarily released for 1 year under paragraph 
(7). 
"(4) QUOTA CONSIDERED PRODUCED.—For purposes of this 
subsection, the farm poundage quota shall be considered pro-
duced on a farm i
f
— 
"(A) the farm poundage quota was not produced on the 
farm because of drought, flood, or any other natural disas-
ter, or any other condition beyond the control of the pro-
ducer, as determined by the Secretary; 
"(B) the farm poundage quota for the farm was relesised 
voluntarily under paragraph (7) for only 1 of the 3 market-
ing years immediately preceding the marketing year for 
which the determination is being made; or 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3463 
"(C) the farm poundage quota was leased to another 
owner or operator of a farm within the same county for 
transfer to such farm for only 1 of the 3 marketing years 
immediately preceding the marketing year for which the 
determination is being made. 
"(5) QUOTA PERMANENTLY RELEASED.—Notwithstanding any 
other provision of law— 
"(A) the farm poundage quota established for a farm 
under this subsection, or any part of the quota, may be 
permanently released by the owner of the farm, or the 
operator with the permission of the owner; and 
"(B) the poundage quota for the farm for which the quota 
is released shall be adjusted downward to reflect the quota 
that is so released. 
"(6) ALLOCATION OF QUOTAS REDUCED OR RELEASED.— 
"(A) IN GENERAL.—Except as provided in subparagraphs 
(B) and (C), the total quantity of the farm poundage quotas 
reduced or voluntarily released from farms in a State for 
any marketing year under paragraphs (3) and (5) shall be 
allocated, as the Secretary may by regulation prescribe, to 
other farms in the State on which peanuts were produced in 
at least 2 of the 3 crop years immediately preceding the 
year for which the allocation is being made. 
"(B) SET-ASIDE FOR FARMS WITH NO QUOTA.—Not more 
than 25 percent of the total amount of farm poundage quota 
to be allocated in the State under subparagraph (A) shall be 
allocated to farms in the State for which no farm poundage 
quota was established for the immediately preceding year's 
crop. The allocation to any such farm shall not exceed the 
average farm production of peanuts for the 3 immediately 
preceding years during which peanuts were produced on 
the farm. 
"(C) ALLOCATION OF QUOTAS REDUCED OR RELEASED IN 
TEXAS.— 
"(i) IN GENERAL.—In Texas, and subject to terms and 
conditions prescribed by the Secretary, beginning with 
the 1991 marketing year, the total quantity of the farm 
poundage quota, except the percentage allocated to new 
farms under subparagraph (B), shall be allocated to 
other farms having poundage quotas for the 1990 
marketing year in all counties in which the production 
of additional peanuts exceeded the total quota allocated 
to the county for the 1989 marketing year. 
"(ii) BASIS FOR ALLOCATION TO COUNTIES.—The alloca-
tion of the quota to eligible counties shall be based on 
the total production of additional peanuts in the respec-
tive county for the 1988 crop, except that the total 
quota allocated to any county under this subparagraph 
and paragraph (2XB) shall not be increased by more 
than 100 percent of the basic quota allocated to the 
county for the 1989 marketing year, if that county had 
more than 10,000 tons of quota for the 1989 marketing 
year. 
"(iii) ALLOCATION TO OTHER COUNTIES.—If the total 
quota for any such county is so increased by 100 per-
cent, all of the remaining quota set aside under this 
subparagraph shall be allocated to farms in other coun-
104 STAT. 3464 
PUBLIC LAW 101-624—NOV. 28, 1990 
ties otherwise meeting the requirements of this 
subparagraph. 
"(iv) ALLOCATION TO ELIGIBLE FARMS.—The percent-
age of farm poundage quota available for allocation 
under this subparagraph shall be allocated only to 
quota farms from which additional peanuts were deliv-
ered under contract with handlers for the marketing 
year immediately preceding the marketing year for 
which the allocation is being made. The percentage of 
the increased quota in each county shall be allocated 
among the eligible farms in the county on the following 
basis: 
"(I) FACTOR.—A factor shall be established for 
each such eligible farm by dividing the amount of 
additional peanuts contracted and delivered to 
handlers from the farm by the total remaining 
peanuts produced on the farm for the marketing 
year immediately preceding the marketing year 
for which the allocation is being made. 
"(II) ALLOCATION.—Each such eligible farm shall 
be allocated the percentage of the increased quota 
for the county as its factor bears to the total of the 
factors for all eligible farms in the county. 
"(7) Q U O T A TEMPORARILY RELEASED.— 
"(A) IN GENERAL.—The farm poundage quota, or any 
portion thereof, established for a farm for a marketing year 
may be voluntarily released to the Secretary to the extent 
that the quota, or any part thereof, will not be produced on 
the farm for the marketing year. Any farm poundage quota 
so released in a State shsdl be allocated to other farms in 
the State on such basis as the Secretary may by regulation 
prescribe. 
"(B) EFFECTIVE PERIOD.—Except as otherwise provided in 
this section, any adjustment in the farm poundage quota for 
a farm under subparagraph (A) shall be effective only for 
the marketing year for which it is made and shall not be 
taken into consideration in establishing a farm poundage 
quota for the farm from which the quota was released for 
any subsequent marketing year. 
"(8) INCREASE FOR UNDERMARKETINGS IN PREVIOUS MARKETING 
YEARS.— 
"(A) IN GENERAL.—Except as provided in subparagraph 
(B), the farm poundage quota for a farm for any marketing 
year shall be increased by the number of pounds by which 
the total marketings of quota peanuts from the farm during 
previous marketing years (excluding any marketing year 
before the marketing year for the 1989 crop) were less than 
the total amount of applicable farm poundage quotas (dis-
regarding adjustments for undermarketings from previous 
marketing years) for the marketing years. 
"(B) QUOTA NOT PRODUCED.—For purposes of subpara-
graph (A), no increase for undermarketings in previous 
marketing years shedl be made to the poundage quota for 
any farm to the extent that the poundage quota for the 
farm for the marketing year was reduced under paragraph 
(3) for failure to produce. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3465 
"(C) NATIONAL POUNDAGE QUOTA.—Any increases in farm 
poundage quotas under this paragraph shall not be counted 
against the national poundage quota for the marketing year 
involved. 
"(D) TRANSFER OF ADDITIONAL PEANUTS.—Any increase in 
the farm poundage quota for a farm for a marketing year 
under this paragraph may be used during the marketing 
year by the transfer of additional peanuts produced on the 
farm to the quota loan pool for pricing purposes on such 
basis as the Secretary shall by regulation prescribe. 
"(9) LIMIT ON INCREASES FOR UNDERMARKETINGS.—Notwith-
standing the foregoing provisions of this subsection, if the total 
of all increases in individual farm poundage quotas under para-
graph (8) exceeds 10 percent of the national poundage quota for 
the marketing year in which the increases shall be applicable, 
the Secretary shall adjust the increases so that the total of all 
the increases does not exceed 10 percent of the national pound-
age quota. 
"(c) FARM YIELDS.— 
"(1) IN GENERAL.—For each farm for which a farm poundsige 
quota is established under subsection (b), and when necessary 
for purposes of this Act, a farm jdeld of peanuts shall be 
determined for each such farm. 
"(2) QUANTITY.—The yield shall be equal to the average of the 
actual 3deld per acre on the farm for each of the 3 crop years in 
which yields were highest on the farm out of the 5 crop years 
1973 through 1977. 
"(3) APPRAISED YIELDS.—If peanuts were not produced on the 
farm in at least 3 years during the 5-year period or there was a 
substantial change in the operation of the farm during the 
period (including a change in operator, lessee who is an opera-
tor, or irrigation practices), the Secretary shall have a 3deld 
appraised for the farm. The appraised 3deld shall be that quan-
tity determined to be fair and reasonable on the basis of jrields 
established for similar farms that are located in the area of the 
farm and on which peanuts were produced, taking into consider-
ation land, labor, and equipment available for the production of 
peanuts, crop rotation practices, soil and water, and other 
relevant factors. 
"(d) REFERENDUM RESPECTING POUNDAGE QUOTAS.— 
"(1) IN GENERAL.—Not later than December 15 of each cal-
endar year, the Secretary shall conduct a referendum of produc-
ers engaged in the production of quota peanuts in the calendar 
year in which the referendum is held to determine whether the 
producers are in favor of or opposed to poundage quotas with 
respect to the crops of peanuts produced in the 5 calendar years 
immediately following the year in which the referendum is 
held, except that, if as many as two-thirds of the producers 
voting in any referendum vote in favor of poundage quotas, no 
referendum shall be held with respect to quotas for the second, 
third, fourth, and fifth years of the period. 
"(2) PROCLAMATION.—The Secretary shall proclaim the result 
of the referendum within 30 days after the date on which it is 
held. 
(3) VOTE AGAINST QUOTAS.—If more than one-third of the 
producers voting in the referendum vote against quotas, the 
Secretary also shall proclaim that poundage quotas will not be 
104 STAT. 3466 
PUBLIC LAW 101-624—NOV. 28, 1990 
in effect with respect to the crop of peanuts produced in the 
calendar year immediately following the calendar year in which 
the referendum is held. 
"(e) DEFINITIONS.—For the purposes of this part and title I of the 
Agricultural Act of 1949 (7 U.S.C. 1441 et seq.): 
"(1) ADDITIONAL PEANUTS.—The term 'additional peanuts' 
means, for any marketing year— 
"(A) any peanuts that are marketed from a farm for 
which a farm poundage quota has been established and that 
are in excess of the marketings of quota peanuts from the 
farm for the year; and 
"(B) all peanuts marketed from a farm for which no farm 
poundage quota has been established in accordance with 
subsection (b). 
"(2) CRUSHING.—The term 'crushing' means the processing of 
peanuts to extract oil for food uses and meal for feed uses, or the 
processing of peanuts by crushing or otherwise when authorized 
by the Secretary. 
"(3) DOMESTIC EDIBLE USE.—The term 'domestic edible use' 
means use for milling to produce domestic food peanuts (other 
than those described in paragraph (2)) and seed and use on a 
farm, except that the Secretary may exempt from this defini-
tion seeds of peanuts that are used to produce peanuts excluded 
under section 359(c), are unique strains, and are not commer-
cially available. 
"(4) QUOTA PEANUTS.—The term 'quota peanuts' means, for 
any marketing year, any peanuts produced on a farm having a 
farm poundage quota, as determined in subsection (b), that— 
"(A) are eligible for domestic edible use as determined by 
the Secretary; 
"(B) are marketed or considered marketed from a farm; 
and 
"(C) do not exceed the farm poundage quota of the farm 
for the year. 
"(f) CROPS.—Notwithstanding any other provision of law, this 
section shall be effective only for the 1991 through 1995 crops of 
peanuts.". 
SEC. 
8
0
3
. 
SALE, 
LEASE, 
OR 
TRANSFER 
OF 
FARM 
POUNDAGE 
QUOTA. 
The Agricultural Adjustment Act of 1938 is amended by inserting 
after section 358a the following new section: 
7 u s e 1358b. 
"SEC. 358b. [>ALE, LEASE, OR TRANSFER OF FARM POUNDAGE QUOTA FOR 
1991 THROUGH 1995 CROPS OF PEANUTS. 
"(a) IN GENERAL.— 
"(1) AUTHORITY.—Subject to such terms, conditions, or limita-
tions as the Secretary may prescribe, the owner, or operator 
with the permission of the owner, of any farm for which a farm 
poundage quota has been established under this Act may sell or 
lease all or any part of the poundage quota to any other owner 
or operator of a farm within the same county for transfer to the 
farm, except that any such lease of poundage quota may be 
entered into in the fall or after the normal planting season— 
"(A) if not less than 90 percent of the basic quota (the 
farm quota exclusive of undermarketings £ind temporary 
quota transfers), plus any poundage quota transferred to 
the farm under this subsection, has been planted or consid-
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3467 
ered plsmted on the farm from which the quota is to be 
leased; and 
"(B) under such terms and conditions as the Secretary 
may by regulation prescribe. 
In the case of a fall transfer or a transfer after the normal 
planting season by a cash lessee, the landowner shall not be 
required to sign the transfer authorization. A fall trgmsfer or a 
transfer after the normal planting season may be made not 
later than 72 hours after the peanuts that are the subject of the 
transfer are inspected and graded. 
"(2) TRANSFERS TO OTHER SELF-OWNED FARMS.—The owner or 
operator of a farm may transfer all or any part of the farm 
poundage quota for the farm to any other farm owned or 
controlled by the owner or operator that is in the same county 
or in a county contiguous to the county in the same State and 
that had a farm poundage quota for the preceding year's crop. 
Any farm poundage quota transferred under this paragraph 
shall not result in any reduction in the farm poundage quota for 
the transferring farm if the transferred quota is produced or 
considered produced on the receiving farm. 
"(3) TRANSFERS IN STATES WITH SMALL QUOTAS.—Notwithstand-
ing paragraphs (1) and (2), in the case of any State for which the 
poundage quota allocated to the State was less than 10,000 tons 
for the preceding year's crop, all or any part of a farm poundage 
quota may be transferred by sale or lease or otherwise from a 
farm in one county to a farm in another county in the same 
State. 
"Ot)) CONDITIONS.—Transfers (including transfer by sale or lease) of 
farm pound£ige quotas under this section shall be subject to all of the 
following conditions: 
"(1) LIENHOLDERS.—No transfer of the farm poundage quota 
from a farm subject to a mortgage or other lien shall be 
permitted unless the transfer is agreed to by the lienholders. 
"(2) TILLABLE CROPLAND.—No transfer of the farm poundage 
quota shall be permitted if the county committee established 
under section 8(b) of the Soil Conservation and Domestic Allot-
ment Act (16 U.S.C. 590h(b)) determines that the receiving farm 
does not have adequate tillable cropland to produce the farm 
poundage quota. 
"(3) RECORD.—No transfer of the farm poundage quota shall 
be effective until a record thereof is filed with the county 
committee of the county to which the transfer is made and the 
committee determines that the transfer complies with this sec-
tion. 
"(4) OTHER TERMS.—Such other terms and conditions that the 
Secretary may by regulation prescribe. 
"(c) CROPS.—Notwithstanding any other provision of law, this 
section shall be effective only for the 1991 through 1995 crops of 
peanuts.". 
SEC. 804. MARKETING PENALTIES; DISPOSITION OF ADDITIONAL PEA-
NUTS. 
The Agricultural Adjustment Act of 1938 is amended by inserting 
after section 359 the following new section: 
104 STAT. 3468 
PUBLIC LAW 101-624—NOV. 28, 1990 
7 use 1359a. 
"SEC. 359a. MARKETING PENALTIES AND DISPOSITION OF ADDITIONAL 
PEANUTS FOR 1991 THROUGH 1995 CROPS OF PEANUTS. 
"(a) MARKETING PENALTIES.— 
"(1) IN GENERAL.— 
"(A) MARKETING PEANUTS IN EXCESS OF QUOTA.—The 
marketing of any peanuts for domestic edible use in excess 
of the farm poundage quota for the farm on which the 
peanuts are produced shall be subject to penalty at a rate 
equal to 140 percent of the support price for quota peemuts 
for the marketing year in which the marketing occurs. The 
penalty shall not apply to the marketing of breeder or 
Foundation seed peanuts grown and marketed by a publicly 
owned agricultural experiment station (including a State 
operated seed organization) under such regulations as the 
Secretary may prescribe. 
"(B) MARKETING YEAR.—For purposes of this section, the 
marketing year for peanuts shall be the 12-month period 
beginning August 1 and ending July 31. 
Regulations. 
"(C) MARKETING ADDITIONAL PEANUTS.—The marketing of 
any additional peanuts from a farm shall be subject to the 
same penalty unless the peanuts, in accordance with regu-
lations established by the Secretary, are— 
"(i) placed under loan at the additional loan rate in 
effect for the peanuts under section 108B of the Agri-
cultural Act of 1949 and not redeemed by the produc-
ers; 
"(ii) marketed through an area marketing association 
designated pursuant to section 108B(cXl) of the Agricul-
tural Act of 1949; or 
"(iii) marketed under contracts between handlers 
and producers pursuant to subsection (f). 
"(2) PAYER.—The penalty shall be paid by the person who 
buys or otherwise acquires the peanuts from the producer or, if 
the peanuts are marketed by the producer through an agent, 
the penalty shall be paid by the agent. The person or agent may 
deduct an amount equivalent to the penalty from the price paid 
to the producer. 
"(3) FAILURE TO COLLECT.—If the person required to collect the 
penalty fails to collect the penalty, the person and all persons 
entitled to share in the peanuts marketed from the farm or the 
proceeds thereof shall be jointly and severally liable with such 
persons who failed to collect the penalty for the amount of the 
penalty. 
"(4) APPUCATION OF QUOTA.—Peanuts produced in a calendar 
year in which farm poundage quotas are in effect for the 
marketing year beginning therein shall be subject to the quotas 
even though the peanuts are marketed prior to the date on 
which the marketing year begins. 
"(5) FALSE INFORMATION.—If any producer falsely identifies, 
fails to accurately certify planted acres, or fails to account for 
the disposition of any peanuts produced on the planted acres, a 
quantity of peanuts equal to the greater of the farm's average or 
actual jdeld, as determined by the Secretary, times the planted 
acres, shall be deemed to have been marketed in violation of 
permissible uses of quota and additional peanuts. Any penalty 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3469 
payable under this paragraph shall be paid and remitted by the 
producer. 
"(6) UNINTENTIONAL VIOLATIONS.—The Secretary shall au- Regulations. 
thorize, under such regulations as the Secretary shall issue, the 
county committees established under section 8(b) of the Soil 
Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)) to 
waive or reduce marketing penalties provided for under this 
subsection in cases which the committees determine that the 
violations that were the basis of the penalties were uninten-
tional or without knowledge on the part of the parties con-
cerned. 
"(7) DE MINIMIS VIOLATIONS.—Errors in weight that do not 
exceed one-tenth of 1 percent in the case of any one marketing 
document shall not be considered to be marketing violations 
except in cases of fraud or conspiracy. 
"(b) USE OF QUOTA AND ADDITIONAL PEANUTS.— 
"(1) QUOTA PEANUTS.—Only quota peanuts may be retained 
for use as seed or for other uses on a farm. When peanuts are so 
retained, such retention shall be considered as marketings of 
quota peanuts, except that the Secretary may exempt from 
consideration as marketings of quota peanuts seeds of peanuts 
for the quantity involved that are used to produce peanuts 
excluded under section 359(c), are unique strains, and are not 
commercially available. 
"(2) ADDITIONAL PEANUTS.—Additional peanuts shall not be 
retained for use on a farm and shall not be marketed for 
domestic edible use, except as provided in subsection (g). 
"(3) SEED.—Except £is provided in paragraph (1), seed for 
planting of any peanut acreage in the United States shall be 
obtained solely from quota peanuts marketed or considered 
marketed for domestic edible use. 
"(c) 
MARKETING PEANUTS WITH EXCESS QUANTITY, GRADE, OR 
QUALITY.—On a finding by the Secretary that the peanuts marketed 
from any crop for domestic edible use by a handler are larger in 
quantity or higher in grade or quality than the peanuts that could 
reasonably be produced from the quantity of peanuts having the 
grade, kernel content, and quality of the quota peanuts acquired by 
the handler from the crop for the marketing, the handler shall be 
subject to a penalty equal to 140 percent of the loan level for quota 
peanuts on the quantity of peanuts that the Secretary determines 
are in excess of the quantity, grade, or quality of the peanuts that 
could reasonably have been produced from the peanuts so acquired. 
"(d) HANDLING AND DISPOSAL OF ADDITIONAL PEANUTS.— 
"(1) IN GENERAL.—Except as provided in paragraph (2), the 
Secretary shall require that the handling and disposal of addi-
tional peanuts be supervised by agents of the Secretary or by 
area marketing associations designated pursuemt to section 
108B(cXl) of the Agricultural Act of 1949. 
"(2) SUPERVISION BY NONHANDLERS.— 
"(A) IN GENERAL.—Supervision of the handling and dis-
posal of additional peanuts by a handler shall not be re-
quired under paragraph (1) if the handler agrees in writing, 
prior to any handling or disposal of the peanuts, to comply 
with regulations that the Secretary shall issue. 
"(B) REGULATIONS.—The regulations issued by the Sec-
retary under subparagraph (A) shall include the following 
provisions: 
104 STAT. 3470 
PUBLIC LAW 101-624—NOV. 28, 1990 
"(i) TYPES OF EXPORTED OR CRUSHED PEANUTS.—Han-
dlers of shelled or milled peanuts may export or crush 
peanuts classified by type in all of the following quan-
tities: 
"(I) SOUND SPUT KERNEL PEANUTS.—Sound split 
kernel peanuts purchased by the handler as addi-
tional peanuts to which, under price support loan 
schedules, a mandated deduction with respect to 
the price paid to the producer of the peanuts would 
be applied due to the percentage of the sound 
splits. 
"(11) SOUND MATURE KERNEL PEANUTS.—Sound 
mature kernel peanuts (which term includes sound 
split kernel peanuts and sound whole kernel pea-
nuts) in an amount equal to the poundage of the 
peanuts purchased by the handler as additional 
peanuts, less the total poundage of sound split 
kernel peanuts described in subclause (I). 
"(Ill) REMAINDER.—The remaining quantity of 
total kernel content of peanuts purchased by the 
handler as additional peanuts, 
"(ii) DOCUMENTATION.—Handlers shall ensure that 
any additional peanuts exported or crushed are evi-
denced by onboard bills of lading or other appropriate 
documentation as may be required by the Secretary, or 
both. 
"(iii) Loss OF PEANUTS.—If a handler suffers a loss of 
peanuts as a result of fire, flood, or any other condition 
beyond the control of the handler, the portion of the 
loss allocated to contracted additional peanuts shall not 
be greater than the portion of the handler's total 
peanut purchases for the year attributable to con-
tracted additional peanuts purchased for export or 
crushing by the handler during the year. 
"(iv) SHRINKAGE ALLOWANCE.— 
"(I) IN GENERAL.—The obligation of a handler to 
export or crush peanuts in quantities described in 
this subparagraph shall be reduced by a shrinkage 
allowance, to be determined by the Secretary, to 
reflect actual dollar value shrinkage experienced 
by handlers in commercial operations, except that 
the allowance shall not be less than 4 percent, 
except as provided in subclause (II). 
"(II) COMMON INDUSTRY PRACTICES.—The Sec-
retary may provide a lower shrinkage allowance 
for a handler who fails to comply with restrictions 
on the use of peanuts, as may be specified by the 
Commodity Credit Corporation, to take into ac-
count common industry practices. 
"(3) ADEQUATE FINANCES AND FACILITIES.—A handler shall 
submit to the Secretary adequate financial guarantees, as well 
as evidence of adequate facilities and assets, with the facilities 
under the control and operation of the handler, to ensure the 
handler's compliance with the obligation to export peanuts. 
Regulations. 
"(4) COMMINGLING OF UKE PEANUTS.—Quota and additional 
peanuts of like type and segregation or quality may, under 
regulations issued by the Secretary, be commingled and ex-
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3471 
changed on a dollar value basis to facilitate warehousing, han-
dling, and marketing. 
"(5) PENALTY.— 
"(A) IN GENERAL.—Except as provided in subparagraph 
(B), the failure by a handler to comply with regulations 
issued by the Secretary governing the disposition and han-
dling of additional peanuts shall subject the handler to a 
penalty at a rate equal to 140 percent of the loan level for 
quota peanuts on the quantity of peanuts involved in the 
violation. 
"(B) NONDEUVERY.—A handler shall not be subject to a 
penalty for failure to export additional peanuts if the pea-
nuts were not delivered to the handler. 
"(6) REENTRY OF EXPORTED PEANUTS.—If any additional pea-
nuts exported by a handler are reentered into the United States 
in commercial quantities as determined by the Secretary, the 
importer thereof shall be subject to a penalty at a rate equ£il to 
140 percent of the loan level for quota peanuts on the quantity 
of peanuts reentered. 
"(e) SPECIAL EXPORT CREDITS.— 
Regulations. 
"(1) IN GENERAL.—The Secretary shall, with due regard for 
the integrity of the peanut program, promulgate regulations 
that will permit any handler of peanuts who manufactures 
peanut products from domestic edible peanuts to export the 
products and receive credit for the fulfillment of export obliga-
tions for the peanut content of the products against which the 
export credits the handler may thereafter apply, up to the 
amount thereof, equivalent quantities of additional peanuts of 
the same type acquired by the hsmdler and used in the domestic 
edible market. The peanuts so acquired for the domestic edible 
market as provided in this subsection shall be of the same crop 
year as the peanuts used in the manufacture of the products so 
exported. 
"(2) CERTIFICATION.—Under such regulations, the Secretary 
shall require all handlers who are peanut product manufactur-
ers to submit annual certifications of peanut product content on 
a product-by-product basis. Any chginges in peanut product 
formulas as affecting peanut content shall be recorded within 90 
days of the changes. The Secretary shall conduct an annual 
review of the certifications. The Secretary shall pursue all 
available remedies with respect to persons who fail to comply 
with this parsigraph. 
"(3) RECORDS.—The Secretary shall require handlers who are 
peanut product manufacturers to maintain and provide such 
documents £is are necessary to ensure compliance with this 
subsection and to maintain the integrity of the peanut program. 
"(f) CONTRACTS FOR PURCHASE OF ADDITIONAL PEANUTS.— 
"(1) IN GENERAL.—Handlers may, under such regulations as 
the Secretary may issue, contract with producers for the pur-
chase of additional peanuts for crushing or export, or both. 
"(2) SUBMISSION TO SECRETARY.— 
"(A) CONTRACT DEADUNE.—Any such contract shall be 
completed and submitted to the Secretary (or if designated 
by the Secretary, the area marketing association) for ap-
proval not later than September 15 of the year in which the 
. crop is produced. 
104 STAT. 3472 
PUBLIC LAW 101-624—NOV. 28, 1990 
"(B) EXTENSION OF DEADLINE.—The Secretary may extend 
the deadline under subparagraph (A) by up to 15 days in 
response to damaging weather or related condition (as de-
fined in section 112 of the Disaster Assistance Act of 
1989 (7 U.S.C. 1421 et seq.)). The Secretary shall announce 
the extension no later than September 5 of the year in 
which the crop is produced. 
"(3) FORM.—The contract shall be executed on a form pre-
scribed by the Secretary. The form shall require such informa-
tion as the Secretary determines appropriate to ensure the 
proper handling of the additional peanuts, including the iden-
tity of the contracting parties, the poundage, and category of 
the peanuts, the disclosure of any liens, and the intended 
disposition of the peanuts. 
"(4) INFORMATION FOR HANDUNG AND PROCESSING ADDITIONAL 
PEANUTS.—Notwithstanding any other provision of this section, 
any person wishing to handle and process additional peanuts as 
a handler shall submit to the Secretary (or if designated by the 
Secretary, the area marketing association), such information as 
may be required under subsection (d) by such date as prescribed 
by the Secretary so as to permit final action to be taken on the 
application by July 1 of each marketing year. 
"(5) TERMS.—Each such contract shall contain the final price 
to be paid by the handler for the peanuts involved and a specific 
prohibition against the disposition of the peanuts for domestic 
edible or seed use. 
"(6) 
SUSPENSION OF RESTRICTIONS ON IMPORTED PEANUTS.— 
Notwithstanding £iny other provision of this Act, if the Presi-
dent issues a proclamation under section 22 of the Agricultural 
Adjustment Act (7 U.S.C. 624), reenacted with amendments by 
the Agricultural Marketing Agreement Act of 1937, temporarily 
suspending restrictions on the importation of peanuts, the Sec-
retary shall, subject to such terms and conditions as the Sec-
retary may prescribe, permit a handler, with the written con-
sent of the producer, to purchase additional peanuts from any 
producer who contracted with the handler and to offer the 
peanuts for sale for domestic edible use. 
"(g) 
MARKETING OF PEANUTS OWNED OR CONTROLLED BY THE 
COMMODITY CREDIT CORPORATION.— 
"(1) IN GENERAL.—Subject to section 407 of the AgricultursJ 
Act of 1949 (7 U.S.C. 1427), any peanuts owned or controlled by 
the Commodity Credit Corporation may be made available for 
domestic edible use, in accordance with regulations issued by 
the Secretary, so long as doing so does not result in substan-
tially increased cost to the Commodity Credit Corporation. 
Additional peanuts received under loan shall be offered for sale 
for domestic edible use at prices not less than those required to 
cover all costs incurred with respect to the peanuts for such 
items as inspection, warehousing, shrinkage, and other ex-
penses, plus— 
"(A) not less than 100 percent of the loan value of quota 
peanuts if the additional peanuts are sold and paid for 
during the harvest season on delivery by and with the 
written consent of the producer; 
"(B) not less than 105 percent of the loan value of quota 
peanuts if the additional peanuts are sold after delivery by 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3473 
the producer but not later than December 31 of the market-
uig year; or 
(C) not less than 107 percent of the loan value of quota 
peanuts if the additional peanuts are sold later th£in 
December 31 of the marketing year. 
"(2) ACCEPTANCE OF BIDS BY AREA MARKETING ASSOCIATIONS.— 
"(A) IN GENERAL.—Except as provided in subparagraph 
(B), for the period from the date additional peanuts are 
delivered for loan to March 1 of the calendar year following 
the year in which the additional peanuts were harvested, 
the area marketing association designated pursuant to sec-
tion 108B(cXl) of the Agricultural Act of 1949 shall have 
sole authority to accept or reject lot list bids when the sales 
price, £is determined under this subsection, equals or ex-
ceeds the minimum price at which the Commodity Credit 
Corporation may sell its stocks of additional peanuts. 
"(B) MODIFICATION.—The area marketing £issociation and 
the Commodity Credit Corporation may agree to modify the 
authority granted by subparagraph (A) to facilitate the 
orderly marketing of additional peanuts. 
"(3) PRODUCER MARKETING AND EXPENSES.—Notwithstanding 
any other provision of this Act, the Secretary shall, in any 
determination required under subsections (aX2) and (bXX) of 
section 108B of the Agricultural Act of 1949, include any addi-
tional marketing expenses required by law, excluding the 
amount of any assessment required under the Omnibus Budget 
Reconciliation Act of 1990. 
*(h) ADMINISTRATION.— 
"(1) INTEREST.—The person liable for pa5nnent or collection of 
any penalty provided for in this section shall be liable also for 
interest thereon at a rate per annum equal to the rate per 
annum of interest that was charged the Commodity Credit 
Corporation by the Treasury of the United States on the date 
the penalty became due. 
"(2) DE MINIMIS QUANTITY.—This section shall not apply to 
peanuts produced on any farm on which the acreage harvested 
for nuts is one acre or less if the producers who share in the 
peanuts produced on the farm do not share in the peanuts 
produced on any other farm. 
"(3) LIENS.—Until the amount of the penalty provided by this 
section is paid, a lien on the crop of peanuts with respect to 
which the penalty is incurred, and on emy subsequent crop of 
peanuts subject to farm poundage quotas in which the person 
liable for pajrment of the penalty has an interest, shall be in 
effect in favor of the United States. 
"(4) PENALTIES.— 
"(A) PROCEDURES.—Notwithstending any other provision Regulations. 
of law, the liability for and the gmiount of any penalty 
assessed under this section shall be determined in accord-
ance with such procedures as the Secretary by regulation 
may prescribe. The facts constituting the basis for deter-
mining the liability for or amount of any penalty assessed 
under this section, when officially determined in conform-
ity with the applicable regulations prescribed by the Sec-
retary, shall be final and conclusive and shall not be 
reviewable by any other officer or agency of the Govern-
ment. 
104 STAT. 3474 
PUBLIC LAW 101-624—NOV. 28, 1990 
"(B) JUDICIAL REVIEW.—Nothing in this section shall be 
construed as prohibiting any court of competent jurisdiction 
from reviewing any determination made by the Secretary 
with respect to whether the determination was made in 
conformity with the applicable law and regulations. 
"(C) CIVIL PENALTIES.—All penalties imposed under this 
section shall for all purposes be considered civil penalties. 
"(5) REDUCTION OF PENALTIES.— 
"(A) IN GENERAL.—Notwithstanding any other provision 
of law and except as provided in subparagraph (B), the 
Secretary may reduce the amount of any penalty assessed 
against handlers under this section by any appropriate 
amount, including, in an appropriate case, eliminating the 
penalty entirely, if the Secretary finds that the violation on 
which the penalty is based was minor or inadvertent, and 
that the reduction of the penalty will not impair the oper-
ation of the peanut program. 
"(B) 
FAILURE TO EXPORT CONTRACTED ADDITIONAL PEA-
NUTS.—The amount of any penalty imposed on a handler 
under this section that resulted from the failure to export 
or crush contracted additional peanuts shall not be reduced 
by the Secretary. 
"(i) CROPS.—Notwithstanding any other provision of law, this 
section shall be effective only for the 1991 through 1995 crops of 
peanuts.". 
SEC. 805. EXPERIMENTAL AND RESEARCH PROGRAMS FOR PEANUTS. 
The Agricultural Adjustment Act of 1938 (as amended by section 
803 of this Act) is further amended by inserting after section 358b 
the following new section: 
7 u s e 1358c. 
"SEC. 358c. EXPERIMENTAL AND RESEARCH PROGRAMS FOR PEANUTS. 
"(a) IN GENERAL.—Notwithstanding any other provision of this 
Act, the Secretary may permit a portion of the poundage quota for 
„ peanuts apportioned to any State to be allocated from the State's 
quota reserve to land-grant institutions identified in the Act of May 
8, 1914 (38 Stat. 372, chapter 79; 7 U.S.C. 341 et seq.), and colleges 
eligible to receive funds under the Act of August 30, 1890 (26 Stat. 
419, chapter 841; 7 U.S.C. 321 et seq.), including Tuskegee Institute 
and, as appropriate, the Agricultural Research Service of the 
Department of Agriculture to be used for experimental and research 
purposes. 
"(b) QUANTITY.—The quantity of the quota allocated to an institu-
tion under this section shall not exceed the quantity of the quota 
held by each such institution during the 1985 crop year, except that 
the total quantity allocated to all institutions in a State shall not 
exceed Vio of 1 percent of the State's basic quota. 
"(c) LIMITATION.—The director of the agricultural experiment 
station for a State shall be required to ensure, to the extent prac-
ticable, that farm operators in the State do not produce quota 
peanuts under subsection (a) in excess of the quantity needed for 
experimental and research purposes. 
"(d) CROPS.—Notwithstanding any other provision of law, this 
section shall be effective only for the 1991 through 1995 crops of 
peanuts.". 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3475 
SEC. 806. PRICE SUPPORT PROGRAM. 
The Agricultural Act of 1949 is amended— 
(1) by repealing sections 108 and 108A (7 U.S.C. 1445c and 
1445C-1); 
(2) by redesignating section 108B (7 U.S.C. 1445c-2) as section 
108A;and 
(3) by inserting after section 108A (as so redesignated) the 
following new section: 
"SEC. 108B. PRICE SUPPORT PROGRAM FOR 1991 THROUGH 1995 CROPS OF 7 USC 1445c-3. 
PEANUTS. 
"(a) QUOTA PEANUTS.— 
"(1) IN GENERAL.—The Secretary shall make price support 
available to producers through loans, purchases, and other 
operations on quota peanuts for each of the 1991 through 1995 
crops. 
"(2) SUPPORT RATES.—The national avergige quota support rate 
for each of the 1991 through 1995 crops of quota peanuts shall 
be the national average quota support rate for the immediately 
preceding crop, adjusted to reflect any increase, during the 
calendar year immediately preceding the marketing year for 
the crop for which a level of support is being determined, in the 
national average cost of peanut production, excluding any 
change in the cost of land, except that in no event shall the 
national average quota support rate for any such crop exceed by 
more than 5 percent the national average quota support rate for 
the preceding crop. 
"(3) INSPECTION, HANDLING, OR STORAGE.—The levels of sup-
port so announced shall not be reduced by any deductions for 
inspection, handling, or storage. 
"(4) LOCATION AND OTHER FACTORS.—The Secretary may make 
adjustments for location of peanuts and such other factors as 
are authorized by section 403. 
"(5) ANNOUNCEMENT.—The Secretary shall announce the 
level of support for quota peanuts of each crop not later than 
February 15 preceding the marketing year for the crop for 
which the level of support is being determined. 
"Ot)) ADDITIONAL PEANUTS.— 
"(1) IN GENERAL.—The Secretary shall make price support 
available to producers through loans, purchases, or other oper-
ations on additional peanuts for each of the 1991 through 1995 
crops at such levels as the Secretary finds appropriate, taking 
into consideration the demand for peanut oil and peanut meal, 
expected prices of other vegetable oils and protein meals, and 
the demand for peanuts in foreign markets, except that the 
Secretary shall set the support rate on additional peanuts at a 
level estimated by the Secretary to ensure that there are no 
losses to the Commodity Credit Corporation on the sale or 
disposal of the peanuts. 
"(2) ANNOUNCEMENT.—The Secretary shall announce the 
level of support for additional peanuts of each crop not later 
than February 15 preceding the marketing year for the crop for 
which the level of support is being determined. 
"(c) AREA MARKETING ASSOCIATIONS.— 
"(1) WAREHOUSE STORAGE LOANS.— 
"(A) IN GENERAL.—In carrying out subsections (a) and (b), 
the Secretary shall make warehouse storage loans available 
New Mexico. 
104 STAT. 3476 
PUBLIC LAW 101-624—NOV. 28, 1990 
in each of the three producing areas (described in section 
1446.95 of title 7 of the Code of Federal Regulations (Janu-
ary 1, 1989)) to a designated area marketing association of 
peanut producers that is selected and approved by the 
Secretary and that is operated primarily for the purpose of 
conducting the loan activities. The Secretary may not make 
warehouse storage loans available to any cooperative that 
is engaged in operations or activities concerning peanuts 
other than those operations and activities specified in this 
section and sections 359 and 359a of the Agricultural 
Adjustment Act of 1938. 
"(B) ADMINISTRATIVE AND SUPERVISORY ACTIVITIES.—The 
area marketing associations shall be used in administrative 
and supervisory activities relating to price support and 
marketing activities under this section and sections 359 and 
359a of the Agricultural Adjustment Act of 1938. 
"(C) ASSOCIATION COSTS.—Loans made to the association 
under this paragraph shall include, in addition to the price 
support value of the peanuts, such costs as the area market-
ing association reasonably may incur in carrying out its 
responsibilities, operations, and activities under this section 
and sections 359 and 359a of the Agricultural Adjustment 
Act of 1938. 
"(2) POOLS FOR QUOTA AND ADDITIONAL PEANUTS.— 
Records. 
"(A) IN GENERAL.—The Secretary shall require that each 
lmpo^j_. 
area marketing association establish pools and maintain 
complete and accurate records by area and segregation for 
quota peanuts handled under loan and for additional pea-
nuts placed under loan, except that separate pools shall be 
established for Valencia peanuts produced in New Mexico. 
Bright hull and dark hull Valencia peanuts shall be consid-
ered as separate t3T)es for the purpose of establishing the 
pools. 
"(B) NET GAINS.—Net gains on peanuts in each pool, 
unless otherwise approved by the Secretary, shall be 
distributed only to producers who placed peanuts in the 
pool and shall be distributed in proportion to the value of 
the peanuts placed in the pool by each producer. Net gains 
for peanuts in each pool shall consist of the following: 
"(i) QUOTA PEANUTS,—For quota peanuts, the net 
gains over and above the loan indebtedness and other 
costs or losses incurred on peanuts placed in the pool 
plus an amount from all additional pool gains equal to 
any loss on disposition of all peanuts in the pool for 
quota peanuts. 
"(ii) ADDITIONAL PEANUTS.—For additional peanuts, 
the net gains over and above the loan indebtedness and 
other costs or losses incurred on peanuts placed in the 
pool for additional peanuts less any amount allocated 
to offset any loss on the pool for quota peanuts as 
provided in clause (i). 
"(d) LOSSES.—Notwithstanding any other provision of this section: 
"(1) QUOTA PEANUTS PLACED UNDER LOAN.—Any distribution of 
net gains on additional peanuts (other than net gains on addi-
tional peanuts in separate type pools established under subsec-
tion (cX2XA) for Valencia peanuts produced in New Mexico) 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3477 
shall be first reduced to the extent of any loss by the Commodity 
Credit Corporation on quota peanuts placed under loan. 
"(2) QUOTA LOAN POOLS.— 
"(A) TRANSFERS FROM ADDITIONAL LOAN POOLS.—The pro-
ceeds due any producer from any pool shedl be reduced by 
the amount of any loss that is incurred with respect to 
peanuts transferred from an additional loan pool to a quota 
loan pool by such producer under section 358-10t)X8) of the 
Agricultural Adjustment Act of 1938. 
"(B) OTHER LOSSES.—Losses in area quota pools, other 
than losses incurred as a result of transfers from additional 
loan pools to quota loan pools under section 358-lG)X8) of 
the Agricultural Adjustment Act of 1938, shall be offset by 
any gains or profits from pools in other production areas 
(other than separate type pools established under subsec-
tion (cX2XA) for Valencia peanuts produced in New Mexico) 
in such manner as the Secretary shall by regulation pre-
scribe. 
"(e) DISAPPROVAL OF QUOTAS.—Notwithstanding any other provi-
sion of law, no price support may be made available by the Secretary 
for any crop of peanuts with respect to which poundsige quotas have 
been disapproved by producers, as provided for in section 358-l(d) of 
the Agricultural Adjustment Act of 1938. 
"(f) QuAUTY IMPROVEMENT.— 
"(1) PRICE SUPPORT PEANUTS.—With respect to peanuts under 
price support loan, the Secretary shall— 
"(A) promote the crushing of peanuts at a greater risk of 
deterioration before peanuts of a lesser risk of deteriora-
tion; 
"(B) ensure that edl (Dommodity Credit Corporation loan 
stocks of peanuts sold for domestic edible use must be 
shown to have been officially inspected by licensed Depart-
ment of Agriculture inspectors both as farmer stock and 
shelled or cleaned in-shell peanuts; 
"(C) continue to endeavor to operate the peanut price 
support program so as to improve the quality of domestic 
peanuts and ensure the coordination of activities under the 
Peanut 
Administrative 
Committee 
established 
under 
Marketing Agreement No. 146, regulating the quality of 
domestically produced peanuts (under the Agricultural 
Marketing Agreement Act of 1937 (7 U.S.C. 601 et seq.)); 
and 
"(D) ensure that any changes made in the price support 
program as a result of this subsection requiring additional 
production or hsmdling at the farm level shall be reflected 
as an upward adjustment in the Department of Agriculture 
loan schedule. 
"(2) EXPORTS AND OTHER PEANUTS.—The Secretary shall 
require that all peanuts in the domestic market fully comply 
with £ill quality standards under Marketing Agreement No. 146. 
The Secretary shall ensure that peanuts produced for the export 
market meet quality standards established for the domestic 
market under Marketing Agreement No. 146. 
"(g) CROPS.—Notwithstanding any other provision of law, this 
section shall be effective only for the 1991 through 1995 crops of 
peanuts.". 
104 STAT. 3478 
PUBLIC LAW 101-624—NOV. 28, 1990 
SEC. 807. REPORTS AND RECORDS. 
Effective only for the 1991 through 1995 crops of peanuts, the first 
sentence of section 373(a) of the Agricultural Adjustment Act of 1938 
(7 U.S.C. 1373(a)) is amended by inserting before "all brokers and 
dealers in peanuts" the following: "all producers engaged in the 
production of peanuts,". 
7 u s e 1441 note. 
SEC. 808. SUSPENSION OF CERTAIN PRICE SUPPORT PROVISIONS. 
Section 101 of the Agricultural Act of 1949 (7 U.S.C. 1441) shall 
not be applicable to the 1991 through 1995 crops of peanuts. 
7 u s e 1358-1 
SEC. 809. REGULATIONS. 
"° ^' 
The Secretary of Agriculture shall issue such regulations as are 
necessary to carry out this title and the amendments made by this 
title. In issuing the regulations, the Secretary— 
(1) is encouraged to comply with subchapter II of chapter 5 of 
title 5, United States (Dode; 
(2) shall provide public notice through the Federal Register of 
any such proposed regulations; and 
(3) shall allow adequate time for written public comment 
prior to the formulation and issuance of any final regulations. 
TITLE IX—SUGAR 
SEC. 901. SUGAR PRICE SUPPORT. 
Title II of the Agricultural Act of 1949 (7 U.S.C. 1446 et seq.) (as 
amended by section 701 of this Act) is further amended— 
(1) in the matter preceding subsection (a) of section 201 (7 
U.S.C. 1446), by striking "honey, and milk" and inserting 
"honey, milk, sugar beets, and sugarcane"; and 
(2) by adding at the end the following new section: 
Loan programs. 
"SEC. 206. SUGAR PRICE SUPPORT FOR 1991 THROUGH 1995 CROPS. 
7 use I446g. 
,,^^^ j ^ GENERAL.—The price of each of the 1991 through 1995 
crops of sugar beets and sugarcane, respectively, shall be supported 
in accordance with this section. 
"(b) SUGARCANE.—The Secretary shall support the price of domes-
ticedly grown sugarcane through nonrecourse loans at such level as 
the Secretary determines appropriate, but not less than 18 cents per 
pound for raw cane sugar. 
"(c) SUGAR BEETS.—The Secretary shall support the price of each 
of the 1991 through 1995 crops of domestically grown sugar beets 
through nonrecourse loans at such level for each such crop as the 
Secretary determines reflects— 
"(1) an amount that bears the same relation to the support 
level for the crop of sugarcane under subsection (b) as the 
weighted average of producer returns for sugar beets bears to 
the weighted average of producer returns for sugarcane, 
expressed on a cents per pound basis for refined beet sugar and 
raw cane sugar, for the most recent 5-year period for which data 
are available; plus 
"(2) an amount that covers sugar beet processor fixed market-
ing expenses. 
"(d) ADJUSTMENT IN SUPPORT PRICE.— 
"(1) IN GENERAL.—The Secretary may increase the support 
price for each of the 1991 through 1995 crops of domestically 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3479 
grown sugarcane and sugar beets from the price determined for 
the preceding crop based on such factors as the Secretary 
determines appropriate, including changes (during the 2 crop 
years immediately preceding the crop year for which the deter-
mination is made) in the cost of sugar products, the cost of 
domestic sugar production, and other circumstances that may 
adversely affect domestic sugar production. 
"(2) REPORT.—If the Secretary makes a determination not to 
increase the support price under paragraph (1), the Secretary 
shall submit a report containing the findings, decision, and 
supporting data for the determination to the Committee on 
Agriculture of the House of Representatives and the Committee 
on Agriculture, Nutrition, and Forestry of the Senate. 
"(e) ANNOUNCEMENTS.—The Secretary shall announce the loan 
rate to be applicable during any fiscal year under this section as far 
in advance of the beginning of that fiscal year as is practicable 
consistent with the purposes of this section. 
"(f) TERM.—Loans under this section during any fiscal year shall 
be made available not earlier than the beginning of the fisceil year 
and shall mature at the earlier of— 
"(1) the end of 9 months; or 
"(2) the end of the fiscal year. 
"(g) SUPPLEMENTARY NONRECOURSE LOANS.—In the case of sugar 
beet producing areas in which sugar beets normally are harvested 
during the last 3 months of a fiscal year, the Secretary shall make 
available, to each borrower of a loan made and repaid under this 
section during the last 3 months of the fiscal year on sugar proc-
essed from sugar beets so harvested, a supplementary nonrecourse 
loan in addition to the initial loan. In each case, the supplementary 
loan shedl— 
"(1) be made available to the borrower as of the first day of 
the following fiscal year; 
"(2) be made at the same loan rate as the initial loan; and 
"(3) mature in 9 months less the amount of time that the 
initial loan was in effect. 
"(h) USE OF COMMODITY CREDIT Ck)RPORATioN.—The Secretary 
shall use the funds, facilities, and authorities of the C!ommodity 
Credit Corporation to carry out this section. 
"(i) CROPS.—This section shall be effective only for the 1991 
through 1995 crops of sugar beets and sugarcane.". 
SEC. 902. MARKETING ALLOTMENTS FOR SUGAR AND CRYSTALLINE 
FRUCTOSE. 
Subtitle B of title III of the Agricultural Adjustment Act of 
1938 (7 U.S.C. 1311 et seq.) is amended by adding at the end the 
following new part: 
"PART VII—MARKETING QUOTAS—SUGAR AND 
CRYSTALLINE FRUCTOSE 
"SEC. 359a. INFORMATION REPORTING. 
7 USC 1359aa. 
"(a) DUTY TO REPORT.—All cane sugar refiners and sugar beet 
processors and all manufacturers of crystalline fructose from corn 
(hereafter in this part referred to as 'crystalline fructose') shall 
furnish the Secretary, on a monthly basis, such information as the 
Secretary may require with respect to the person's importation. 
104 STAT. 3480 
PUBLIC LAW 101-624—NOV. 28, 1990 
7 use 1359bb. 
Imports. 
distribution, and stock levels of sugar or crystalline fructose, respec-
tively. 
"(b) PENALTY.—Any person willfully failing or refusing to furnish 
the information, or furnishing willfully any false information, shall 
be subject to a civil penalty of not more than $10,000 for each such 
violation. 
"(c) MONTHLY REPORTS.—Taking into consideration the informa-
tion received under subsection (a), the Secretary shall publish on a 
monthly basis composite data on imports, distribution, and stock 
levels of sugar and crystalline fructose. 
"SEC. 359b. MARKETING ALLOTMENTS FOR SUGAR AND CRYSTALLINE 
FRUCTOSE. 
"(a) SUGAR ESTIMATES.— 
"(1) IN GENERAL.—Before the beginning of each of the fiscal 
years 1992 through 1996, the Secretary shall estimate— 
"(A) the quantity of sugar that will be consumed in the 
customs territory of the United States during the fiscal 
year (other than sugar imported for purposes other than 
human consumption); 
"(B) the quantity of sugar that will be available from 
carry-in stocks or from domestically-produced sugarcane 
and sugar beets for consumption in the United States 
during the year; and 
"(C) the quantity of sugar that will be imported for 
consumption during the year (other than sugar imported 
for purposes other than human consumption), based on the 
difference between— 
"(i) the quantity of estimated consumption; and 
"(ii) the quantity of sugar estimated to be available 
from domestically-produced sugarcane and sugar beets 
and from carry-in stocks. 
"(2) QUARTERLY REESTIMATES.—The Secretary shall make 
quarterly reestimates of sugar consumption, availability, and 
imports for a fiscal year no later than the beginning of each of 
the second through fourth quarters of the fiscal year. 
"Ot)) SUGAR ALLOTMENTS.— 
"(1) IN GENERAL.—For any fiscal year in which the Secretary 
estimates, under subsection (a), that imports of sugar for 
consumption in the United States will be less than 1,250,000 
short tons, raw value, the Secretary shall establish for that year 
appropriate allotments under section 359c for the marketing by 
processors of sugar processed from domestically-produced sugar-
cane and sugar beets in a manner that is fair, efficient, and 
equitable to producers, processors, and refiners, at a level that 
the Secretary estimates will result in imports of sugar of not 
less than 1,250,000 short tons, raw value, for that year. 
"(2) PRODUCTS.—The Secretary may include products of sugar 
in the allotments under paragraph (1) if the Secretary deter-
mines it to be appropriate for purposes of this part. 
"(c) CRYSTALLINE FRUCTOSE ALLOTMENTS.—For any fiscal year in 
which the Secretary establishes allotments for the marketing of 
sugar under section 359c, the Secretary shall establish for that year 
appropriate allotments for the marketing by manufacturers of crys-
talline fructose manufactured from corn, at a total level not to 
exceed the equivalent of 200,000 tons of sugar, raw value, during the 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3481 
fiscal year, in a manner that is fair, efficient, and equitable to 
manufacturers. 
"(d) PROHIBITIONS.— 
"(1) SUGAR.— 
"(A) EXCEEDING ALLOCATION.—At any time allotments are 
in effect and allocated to processors under section 359d, the 
total of— 
"(i) the quantity of sugar marketed by a processor, 
plus 
"(ii) the quantity of sugar pledged as collateral by the 
processor for a price support loan under section 206 of 
the .^ricultural Act of 1949, 
shall not exceed the quantity of the allocation of the allot-
ment made to the processor. 
"(B) EXCEPTIONS.—Subparagraph (A) shall not apply— 
"(i) to the marketing during a fiscal year of sugar 
pledged in that fiscal year as collateral for a price 
support loan under section 206 of the Agricultural Act 
of 1949 after the sugar has been subsequently re-
deemed; or 
"(ii) to any sale of sugar by a processor to another 
processor made to enable the other processor to fulfill 
the quantity of the allocation of the allotment made to 
the other processor. 
"(2) CRYSTALLINE FRUCTOSE.—At any time crystalline fructose 
allotments are in effect for manufacturers under subsection (c), 
no manufacturer may market crystalline fructose in excess of 
the manufacturer's allotment. No restrictions or allotments 
shall be established on the marketings of any liquid fructose 
produced from corn. 
"(3) CIVIL PENALTY.—Any processor who violates paragraph 
(1) or manufacturer who violates paragraph (2) shall be liable to 
the (Commodity Credit C!orporation for a civil penalty in an 
amount equal to 3 times the United States market value, at the 
time of the commission of the violation, of that quantity of 
sugar or crystalline fructose involved in the violation. 
"(4) DEFINITION OF MARKET.—For purposes of this part, the 
term 'market' shall mean to sell or otherwise dispose of in 
commerce in the United States. 
"SEC. 359c. ESTABLISHMENT OF MARKETING ALLOTMENTS. 
7 USC 1359cc. 
"(a) IN GENERAL.—The Secretary shall establish marketing allot-
ments for sugar for any fiscal year in which the allotments are 
required under section 359b(b) in accordance with this section. 
"(b) OVERALL ALLOTMENT QUANTITY.— 
"(1) IN GENERAL.—The Secretary shall establish the overall 
quantity of sugar to be allotted for the fiscal year (hereafter in 
this part referred to as the 'overall allotment quantity') by 
deducting from the estimated sugar consumption for the fiscal 
year, as determined under section 359b(a)— 
"(A) 1,250,000 short tons, raw value (representing mini-
mum imports of sugar for consumption in the United States 
during the fiscal year); and 
"(B) carry-in stocks of sugar, including sugar in Commod-
ity Credit Corporation inventory. 
(2) ADJUSTMENT.—The Secretary shall adjust the overall allot-
ment quantity to the maximum extent practicable to prevent 
104 STAT. 3482 
PUBLIC LAW 101-624—NOV. 28, 1990 
the accumulation of sugar acquired by the Commodity Credit 
Corporation. 
"(c) ALLOTMENT.—The overall allotment quantity for the fiscal 
year shall be allotted among— 
"(1) sugar derived from sugar beets; and 
"(2) sugar derived from sugarcane. 
"(d) PERCENTAGE FACTORS.— 
"(1) IN GENERAL.—The Secretary shall establish percentage 
factors for the overall beet sugar and cane sugar allotments 
applicable for a fiscal year. The Secretary shall establish the 
percentage factors in a fair and equitable manner on the basis 
of past marketings of sugar (considering for such purposes the 
marketings of sugar processed from sugarcane and sugar beets 
of any or all of the 1985 through 1989 crops), processing and 
refining capacity, and the ability of processors to market the 
sugar covered under the allotments. 
Federal 
"(2) PUBLICATION.—The Secretary shall publish these percent-
^sister, 
age factors in the Federal Register, along with a description of 
pu ica ion. 
^g^ Secretary's reasons for establishing the factors, as provided 
in section 359h(c). 
"(e) MARKETING ALLOTMENT.—The marketing allotment for sugar 
derived from sugarcane and the marketing allotment for sugar 
derived from sugar beets for a fiscal year, in each case, shall be a 
quantity equal to the product of multipljdng the overall allotment 
quantity for the fiscal year by the percentage factor established by 
the Secretary under subsection (dXl) for the allotment. 
"(f) STATE SUGARCANE ALLOTMENT.—The allotment for sugar de-
rived from sugarcane shall be further allotted among the 5 States in 
the United States in which sugarcane is produced in a fair and 
equitable manner on the basis of past marketings of sugar (consider-
ing for such purposes the average of marketings of sugar processed 
from sugarcane in the 2 highest years of production from each State 
from the 1985 through 1989 crops), processing capacity, and the 
ability of processors to market the sugar covered under the allot-
ments. 
"(g) ADJUSTMENT OF MARKETING ALLOTMENTS.— 
"(1) IN GENERAL.—The Secretary shall, based on reestimates 
under section 359b(aX2), adjust upward or downward marketing 
allotments established under subsections (a) through (f) in a fair 
and equitable manner, or suspend the allotments, as the Sec-
retary determines appropriate, to reflect changes in estimated 
sugar consumption, availability, or imports. 
"(2) ALLOCATION TO PROCESSORS.—In the case of any increase 
or decrease in an allotment, each allocation to a processor of the 
allotment under section 359d, and each proportionate share 
established with respect to the allotment under section 359f(b), 
shall be increased or decreased by the same percentage that the 
allotment is increased or decreased. 
"(3) REDUCTIONS.—Whenever a marketing allotment for a 
fiscal year is required to be reduced during the fiscal year under 
this paragraph— 
"(A) if the quantity of the sugar marketed, including 
sugar pledged as collateral for a price support loan under 
section 206 of the Agricultural Act of 1949, for the fiscal 
year at the time of the reduction under the allotment by all 
processors covered by the sdlotment exceeds the reduced 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3483 
allotment, the quantity of the excess sugar marketed shall 
be deducted— 
"(i) if beet sugar is involved, from the marketing 
allotment, if any, next established for beet sugar; or 
"(ii) if cane sugar is involved, from the marketing 
allotment next established for the State; and 
"(B) if the quantity of sugar marketed, including sugar 
pledged as collateral for a price support loan under section 
206 of the Agricultural Act of 1949, for the fiscal year at the 
time of the reduction by any individual processor covered 
by the allotment exceeds the processor's reduced allocation, 
the quantity of the excess sugar marketed shall be deducted 
from the allocation of an allotment, if any, next established 
for the processor. 
"(h) FILLING SUGARCANE AND SUGAR BEET ALLOTMENTS.—Except 
as otherwise provided in section 359e, each marketing allotment of 
sugarcane established under this section may only be filled with 
sugar processed from domestically grown sugarcane, and each 
marketing allotment of sugar beets established under this section 
may only be filled with sugar processed from domestically grown 
sugar beets. 
"SEC. 359d. ALLOCATION OF MARKETING ALLOTMENTS. 
7 USC 1359dd. 
"(a) IN GENERAL.— 
"(1) ALLOCATION TO PROCESSORS.—Whenever marketing allot-
ments are established for a fiscal year under section 359c, in 
order to afford all interested persons an equitable opportunity 
to market sugar under an allotment, the Secretary shall allo-
cate each such allotment among the processors covered by the 
£illotment. 
"(2) HEARING AND NOTICE.— 
"(A) CANE SUGAR.—The Secretary shall make allocations 
for cane sugar after such hearing and on such notice as the 
Secretary by regulation may prescribe, in such manner and 
in such quantities as to provide a fair, efficient, and equi-
table distribution of the allocations by taking into consider-
ation processing capacity, past marketings of sugar, and the 
ability of each processor to market sugar covered by that 
portion of the allotment allocated. Each such allocation 
shall be subject to adjustment under section 359c(g). 
"(B) BEET SUGAR.—The Secretary shall make allocations 
for beet sugar after such hearing and on such notice as the 
Secretary by regulation may prescribe, in such manner and 
in such quantities as to provide a fair, efficient, and equi-
table distribution of the allocations by taking into consider-
ation processing capacity, past marketings of sugar (consid-
ering for the purposes the marketings of sugar processed 
from sugar beets of any or all of the 1985 through 1989 
crops), and the ability of each processor to market sugar 
covered by that portion of the allotment allocated. Each 
such allocation shall be subject to adjustment under section 
359c(g). 
"(b) FILLING CANE SUGAR ALLOTMENTS.—Except as otherwise pro-
vided in section 359e, the marketing allotment established for cane 
sugar under this part for a fiscal year may be filled only with sugar 
processed from sugarcane grown in the State covered by the allot-
ment. 
39-194 O - 91 - 6 : QL 3 Part 5 
104 STAT. 3484 
PUBLIC LAW 101-624—NOV. 28, 1990 
7 use 1359ee. 
"SEC. 359e. ASSIGNMENTS OF DEFICITS. 
"(a) ESTIMATES OF MARKETING.—At any time allotments are in 
effect under this part, the Secretary, from time to time, shall 
determine whether (in view of then-current inventories of sugar, the 
estimated production of sugar and expected marketings, and other 
pertinent factors) processors of sugarcane in each State covered by 
an allotment will be able to market the sugar covered by the 
allotment applicable to them and whether processors of sugar beets 
will be able to market sugar covered by the portion of the beet sugar 
allotment applicable to them. 
"(b) REASSIGNMENT OF DEFICITS.— 
"(1) CANE SUGAR.—If the Secretary determines that the sugar-
cane processors subject to a State allotment will be unable to 
market the State's allotment for the fiscal year— 
"(A) the Secretary first shall reassign the estimated quan-
tity of the deficit proportionately to the allocations for 
other processors within that State; 
"(B) if after the reassignments the deficit cannot be 
completely eliminated, the Secretary shall reassign the 
estimated quantity of the deficit proportionately to the 
allotments for other cane sugar States, depending on the 
capacity of each other State to fill the portion of the deficit 
to be assigned to it, with the reassigned quantity to each 
State to be allocated among processors in that State in 
proportion to the allocations of the processors; and 
Imports. 
"(C) if after the reassignments, the deficit cannot be 
completely eliminated, the Secretary shall reassign the 
remainder to imports. 
"(2) BEET SUGAR.—If the Secretary determines that a sugar 
beet processor subject to an allotment will be unable to market 
that £dlotment— 
"(A) the Secretary first shall reassign the estimated quan-
tity of the deficit proportionately to the allotments for other 
sugar beet processors, depending on the capacity of each 
other processor to fill the portion of the deficit to be as-
signed to it; and 
"(B) if after the reassignments, the deficit cannot be 
completely eliminated, the Secretary shall reassign the 
remEiinder to imports. 
"(3) CORRESPONDING INCREASE.—The allocation of each proc-
essor receiving a reassigned quantity of an allotment under this 
subsection for a fiscal year shall be increased to reflect the 
reassignment. 
7 use 1359ff. 
"SEC. 359f. PROVISIONS APPLICABLE TO PRODUCERS. 
"(a) PROCESSOR ASSURANCES.—Whenever allotments for a fiscal 
year are allocated to processors under section 359d, the Secretary 
shall obtain from the processors such assurances as the Secretary 
considers adequate that the allocation will be shared simong produc-
ers served by the processor in a fair and equitable manner that 
adequately reflects producers' production histories. Any dispute 
between a processor and a producer, or group of producers, with 
respect to the sharing of the processor's allocation shall be resolved 
through arbitration by the Secretary on the request of either party. 
"(b) PROPORTIONATE SHARES OF CERTAIN ALLOTMENTS.— 
"(1) IN GENERAL.— 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3485 
"(A) STATES AFFECTED.—In any case in which a State 
allotment is established under section 359c(f) and there are 
in excess of 250 producers in such State, the Secretary shall 
make a determination under subparagraph (B). 
"(B) DETERMINATION.—The Secretary shall determine, for 
each State allotment described in subparagraph (A), 
whether the production of sugar, in the absence of propor-
tionate shares, will be greater than the quantity needed to 
enable processors to fill the allotment and provide a normal 
carryover inventory. 
"(2) ESTABLISHMENT OF PROPORTIONATE SHARES.—If the Sec-
retary determines under pargigraph (1) that the quantity of 
sugar processed from all crops by all processors covered by a 
State allotment for a fiscal year will be in excess of the quantity 
needed to enable processors to fill the allotment for the fiscal 
year and provide a normal carryover inventory, the Secretary 
shall establish proportionate shares for the crop of sugarcane 
that is harvested during the fiscal year the allotment is in effect 
as provided in this subsection. Each such proportionate share 
shall be subject to adjustment under section 359c(g). 
"(3) METHOD OF DETERMINING.—For purposes of determining 
proportionate shares for any crop of sugarcane: 
"(A) The Secretary shall establish the State's per-acre 
yield goal for a crop at a level (not less than the average 
per-acre yield in the State for the preceding 5 years, as 
determined by the Secretary) that will ensure an adequate 
net return per pound to producers in the State, taking into 
consideration any available production research data that 
the Secretary deems relevant. 
"(B) The Secretary shall convert the State allotment for 
the fiscal year involved into a State acreage allotment for 
the crop by dividing the State allotment by the per-acre 
jrield goal for the State, as established under subparagraph 
(A). 
"(C) The Secretary shall establish a uniform reduction 
percentage for the crop by dividing the State acreage allot-
ment, as determined for the crop under subparagraph (B), 
by the sum of all acreage bases in the State, as determined 
by the Secretary, that the Secretary estimates would other-
wise be harvested for the production of the crop of sugar-
cane. 
"(D) The uniform reduction percentage for the crop, as 
determined under subparagraph (C), shall be applied to the 
acreage beise for each farm covered by the State allotment 
to determine the farm's proportionate share for the crop. 
"(4) ACREAGE BASE.—For purposes of this subsection, the acre-
age base for each sugarcane-producing farm shall be determined 
by the Secretary, as follows: 
"(A) The acreage base for any crop shall be the number of 
acres that is equal to the average of the acreage planted 
and considered planted for harvest for sugar or seed on the 
farm in each of the 5 crop years preceding the crop year. 
"O) Acreage that producers on a farm were unable to 
harvest to sugarcane for sugar or seed because of drought, 
flood, other natural disaster, or other condition beyond the 
control of the producers shall be considered as harvested to 
sugarcane for sugar or seed for purposes of this paragraph. 
104 STAT. 3486 
PUBLIC LAW 101-624—NOV. 28, 1990 
"(5) VIOLATION.— 
"(A) IN GENERAL.—Whenever proportionate shares are in 
effect in a State for a crop of sugarcane, no producer in the 
State knowingly may harvest for sugar or seed an acreage 
of sugarcane of the crop in excess of the farm's propor-
tionate share for the crop or otherwise violate propor-
tionate share regulations issued by the Secretary under 
section 359h(a). 
"(B) CIVIL PENALTY.—Any producer who violates subpara-
graph (A) shall be liable to the Commodity Credit Corpora-
tion for a civil penalty in an amount equal to 3 times the 
United States market value, at the time of the commission 
of the violation, of that quantity of sugar involved in the 
violation. The quantity of sugar involved shall be deter-
mined based on the per-acre 3deld goal established under 
paragraph (3). 
"(6) WAIVER.—Notwithstanding the preceding subparagraph, 
the Secretary may authorize the county and State committees 
established under section 8(b) of the Soil Conservation and 
Domestic Allotment Act (16 U.S.C. 590h(b)) to waive or modify 
deadlines and other proportionate share requirements in cases 
in which lateness or failure to meet the other requirements does 
not affect adversely the operation of proportionate shares. 
7 use 1359gg. 
"SEC. 359g. SPECIAL RULES. 
"(a) TRANSFER OF PRODUCTION HISTORY.—For the purpose of 
establishing proportionate shares for producers under section 359f, 
the Secretary, on application of giny producer, may transfer the 
production history of land owned, operated, or controlled by the 
producers to any other parcels of land of the applicant. 
"(b) RESERVATION OF PRODUCTION HISTORY.—If for reasons beyond 
the control of an owner of a farm, the owner is unable to use all or a 
portion of the proportionate share established for the farm under 
section 359f, the Secretary may reserve for a period of not more than 
3 consecutive years the production history of the farm to the extent 
of the proportionate share involved. The proportionate share may be 
redistributed to other farm owners or operators, but no production 
history shall accrue to the other farm owners or operators, by virtue 
of the redistribution of the proportionate share so redistributed. 
"(c) REVISIONS OF ALLOCATIONS AND PROPORTIONATE SHARES.—The 
Secretary, after such hearing and notice as the Secretary by regula-
tion may prescribe, may revise or amend any allocation of a market-
ing allotment under section 359d, or any proportionate share estab-
lished for a farm under section 359f, on the same bEisis as the initial 
allocation or proportionate share was established. 
7 use 1359hh. 
"SEC. 359h. REGULATIONS; VIOLATIONS; PUBLICATION OF SECRETARY'S 
DETERMINATIONS; JURISDICTION OF THE COURTS; UNITED 
STATES ATTORNEYS. 
"(a) REGULATIONS.— 
"(1) IN GENERAL.—The Secretary shall issue such regulations 
as may be necessary to carry out the authority vested in the 
Secretary in administering the marketing allotment program 
under this part. 
"(2) PRIOR CONSULTATIONS REQUIRED.—In addition to taking 
such other action as may be required under section 551 through 
559 of title 5, United States Code, prior to proposing giny regula-
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3487 
tions under paragraph (1), the Secretary shall consult with 
representatives of domestic sugar processors and producers with 
regard to ensuring that the regulations achieve the objectives of 
this part. The results of the consultations shall be published in 
the Federal Register, along with the proposed regulations. 
"(b) VIOLATION.—Any person knowingly violating any regulation 
of the Secretary issued under subsection (a) shall be subject to a civil 
penalty of not more than $5,000 for each violation. 
"(c) PuBUCATiON IN FEDERAL REGISTER.—Each determination 
issued by the Secretary to establish, adjust, or suspend allotments 
under this part shall be promptly published in the Federal Register 
and shall be accompanied by a statement of the reasons for the 
determination. 
"(d) JURISDICTION OF COURTS; UNITED STATES ATTORNEYS.— 
"(1) JURISDICTION OF COURTS.—The several district courts of 
the United States are vested with jurisdiction specifically to 
enforce, and to prevent and restrain any person from violating, 
this part or any regulation issued thereunder. 
"(2) UNITED STATES ATTORNEYS.—Whenever the Secretary 
shall so request, it shall be the duty of the several United States 
attorneys, in their respective districts, to institute proceedings 
to enforce the remedies and to collect the penalties provided for 
in this part. The Secretary may elect not to refer to a United 
States attorney any violation of this part or regulation when the 
Secretary determines that the administration and enforcement 
of this part would be adequately served by written notice or 
warning to any person committing the violation. 
"(e) NoNEXCLUSiviTY OF REMEDIES.—The remedies and penalties 
provided for in this part shall be in addition to, and not exclusive of, 
any remedies or penalties existing at law or in equity. 
"SEC. 359i. APPEALS. 
"(a) IN GENERAL.—An appeal may be taken to the Secretary from 
any decision under section 359d establishing allocations of market-
ing allotments, or under section 359f, by any person adversely 
affected by reason of any such decision. 
"(b) PROCEDURE.— 
"(1) NOTICE OF APPEAL.—Any such appeal shall be taken by 
filing with the Secretary, within 20 days after the decision 
complained of is effective, notice in writing of the appeal and a 
statement of the reasons therefor. Unless a later date is speci-
fied by the Secretary as part of the Secretary's decision, the 
decision complained of shall be considered to be effective as of 
the date on which announcement of the decision is made. The 
Secretary shall deliver a copy of any notice of appeal to each 
person shown by the records of the Secretary to be adversely 
affected by reason of the decision appealed, and shall at all 
times thereafter permit any such person to inspect and make 
copies of appellant's reasons for the appeal and shall on applica-
tion permit the person to intervene in the appeal. 
"(2) HEARING.—The Secretary shall provide each appellant an 
opportunity for a hearing. TTie Secretary shall appoint an 
administrative law judge to conduct a hearing on the record on 
each appeal under this section. In all other respects, each 
appeal under this section shall be subject to sections 551 
through 559, and 701 through 706, of title 5, United States Code. 
Federal 
Register, 
publication. 
7 u s e 1359ii. 
104 STAT. 3488 
PUBLIC LAW 101-624—NOV. 28, 1990 
7 use 1359JJ. 
"SEC. 359j. ADMINISTRATION. 
"(a) USE OF CERTAIN AGENCIES.—In carr3dng out this part, the 
Secretary may use the services of local committees of sugar beet or 
sugarcane producers, sugarcane processors, or sugar beet processors. 
State and county committees established under section 8(b) of the 
Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)), 
and the departments and agencies of the United States Government. 
"(b) USE OF COMMODITY CREDIT CORPORATION.—The Secretary 
shall use the services, facilities, funds, and authorities of the 
Commodity Credit Corporation to carry out sections 359a through 
359i. 
"(c) DEFINITION OF UNITED STATES AND STATE.—Notwithstanding 
section 301, for purposes of this part, the terms 'United States' and 
'State' means the 50 States, the District of CJolumbia, and the 
Commonwealth of Puerto Rico.". 
SEC. 9
0
3
. 
REPORTS 
ON 
QUOTA 
ALLOCATIONS 
TO 
COUNTRIES 
IMPORTING 
SUGAR 
Section 902(c) of the Food Security Act of 1985 (7 U.S.C. 1446 note) 
is amended— 
(1) by inserting "(1)" after the subsection designation; and 
(2) by adding at the end the following new paragraph: 
"(2)(A) Effective 90 days after the date of enactment of this 
paragraph and by August 1 of each year thereafter through 1995, 
the Secretary of Agriculture shall report to the President and 
Congress on the extent, if any, of sugar imports from Cuba by the 
countries described in paragraph (1). 
President. 
"(B) Commencing with the quota year for sugar imports after the 
1990-1991 quota year, the President shall report to Congress by 
January 1, on— 
' (i) the identity of the countries that are net importers of 
sugar derived from sugarcane or sugar beets who have a quota 
for the current quota year; 
"(ii) the identity of such countries who have verified that they 
do not import for reexport to the United States any sugar 
produced in Cuba; and 
"(iii) the action, if any, taken by the President with respect to 
countries reported by the Secretary of Agriculture as net 
importers of sugar derived from sugarcane or sugar beets who 
imported the sugar from Cuba who reexported the sugar to the 
United States during the previous quota year.". 
Loan programs 
T I T L E 
X — H O N E Y 
SEC. 1001. HONEY PRICE SUPPORT. 
Title II of the Agricultural Act of 1949 (7 U.S.C. 1446 et seq.) (as 
amended by section 901 of this Act) is further amended by adding at 
the end the following new section: 
7 use 1446h. 
"SEC. 207. HONEY PRICE SUPPORT. 
"(a) IN GENERAL.—For each of the 1991 through 1995 crops of 
honey, the price of honey shall be supported through loans, pur-
chases, or other operations at not less than 53.8 cents per pound. 
"(b) MARKETING LOAN PROVISIONS.—The Secretary may permit a 
producer to repay a loan made to the producer under this section for 
a crop at a level that is the lesser of— 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3489 
"(1) the loan level determined for the crop; or 
"(2) such level as the Secretary determines will— 
"(A) minimize the number of loan forfeitures; 
"(B) not result in excessive total stocks of honey; 
"(C) reduce the costs incurred by the Federal Government 
in storing honey; and 
"(D) maintain the competitiveness of honey in the domes-
tic and export markets. 
"(c) LOAN DEFICIENCY PAYMENTS.— 
"(1) IN GENERAL.—The Secretary shall, for each of the 1991 
through 1995 crops of honey, make pa5niients available to 
producers who, although eligible to obtain a loan under subsec-
tion (b), agree to forgo obtaining the loan in return for pajnnents 
under this subsection. 
"(2) COMPUTATION.—A pajonent under this subsection shall be 
computed by multiplying— 
"(A) the loan payment rate; by 
"(B) the quantity of honey the producer is eligible to place 
under loan but for which the producer forgoes obtaining the 
loan in return for payments under this subsection. 
"(3) LOAN PAYMENT RATE.—For purposes of this subsection, 
the loan payment rate shall be the amount by which— 
"(A) the loan level determined for the crop under subsec-
tion (a); exceeds 
"(B) the level at which a loan may be repaid under 
subsection (b). 
"(4) MARKETING CERTIFICATES.—The Secretary may make pay-
ments under this section available in the form of certificates 
redeemable for any agricultural commodity owned by the 
Commodity Credit Corporation. 
"(d) PLEDGING ADULTERATED OR IMPORTED HONEY AS COLLAT-
ERAL.— 
"(1) IN GENERAL.—If the Secretary determines that a person 
has knowingly pledged adulterated or imported honey as collat-
eral to secure a loan made under this section, the person, in 
addition to any other penalty or sanction prescribed by law, 
shall be ineligible for a loan, purchase, or payment under this 
section for the 3 crop years succeeding the determination. 
"(2) ADULTERATED HONEY.—For purposes of paragraph (1), 
honey shall be considered adulterated i
f
— 
"(A) any substance has been substituted wholly or in part 
for the honey; 
"(B) the honey contains a poisonous or deleterious sub-
stance that may render the honey injurious to health, 
except that in any case in which the substance is not added 
to the honey, the honey shall not be considered adulterated 
if the quantity of the substance in or on the honey does not 
ordinarily render it injurious to health; or 
"(C) for, any other reason, the honey is unsound, 
unhealthy, unwholesome, or otherwise unfit for human 
consumption. 
"(e) PAYMENT LIMITATIONS.— 
"(1) IN GENERAL.—The total amount of pa3nnents that a 
person may receive under this section may not exceed— 
"(A) $200,000 in the 1991 crop year; 
"(B) $175,000 in the 1992 crop year; 
"(C) $150,000 in the 1993 crop year; and 
104 STAT. 3490 
PUBLIC LAW 101-624^NOV. 28, 1990 
"(D) $125,000 in each of the 1994 and subsequent crop 
years. 
"(2) PAYMENTS.—For the purposes of this subsection, the term 
'payments' means— 
"(A) any gain realized by a producer from repajdng a loan 
for a crop of honey at a lower level than the original loan 
level under this section; and 
"(B) any loan deficiency payment received under subsec-
tion (c). 
Regulations. 
"(3) PERSON.—The Secretary shall issue regulations defining 
the term 'person' for the purposes of this section. The regula-
tions shall provide for the attribution of payments received 
under this section. 
"(f) REGULATIONS.—The Secretary may issue such regulations as 
the Secretary determines necessary to carry out this section. 
"(g) COMMODITY CREDIT CORPORATION.—The Secretary shall carry 
out the program authorized by this section through the Commodity 
Credit Corporation. 
"(h) ASSIGNMENT OF PAYMENTS.—The provisions of section 8(g) of 
the Soil C!onservation and Domestic Allotment Act (16 U.S.C. 
590h(g)) (relating to assignment of pa5ntnents) shall apply to pay-
ments under this section. 
"(i) CROPS.—Notwithstanding any other provision of law, this 
section shall be effective only for the 1991 through 1995 crops of 
honey.". 
SEC. 1002. LOAN FORFEITURE LIMITATION. 
7 use 1425a. 
Section 405A of the Agricultural Act of 1949 (7 U.S.C. 1425A) is 
amended— 
(1) in subsection (a), by striking "producer for such crop of 
honey under section 201(b), does not exceed $250,000" and 
inserting "person for such crop of honey under section 207, does 
not exceed $200,000 in the 1991 crop year, $175,000 in the 1992 
crop year, $150,000 in the 1993 crop year, and $125,000 in each 
of the 1994 and subsequent crop years"; and 
Regulations. 
(2) in subsection (d), by adding at the end the following new 
sentence: "The regulations shall provide for the attribution of 
the value of collateral forfeited 
on loans described in 
subsection (a).". 
TITLE XI—GENERAL COMMODITY 
PROVISIONS 
Subtitle A—Acreage Base and Yield System 
SEC. 1101. ACREAGE BASE AND YIELD SYSTEM. 
Title V of the Agricultural Act of 1949 (7 U.S.C. 1461 et seq.) is 
amended to read as follows: 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3491 
"TITLE V—ACREAGE BASE AND YIELD 
SYSTEM 
"SEC. 501. PURPOSE. 
7 USC 1461. 
"The purpose of this title is to prescribe a system for establishing 
crop acreage beises and program payment jdelds for the wheat, feed 
grains, upland cotton, and rice programs under this Act that is 
efficient, equitable, flexible, and predictable. 
"SEC. 502. DEFINITIONS. 
7 USC 1462. 
"For purposes of this title: 
"(1) COUNTY COMMITTEE.—The term 'county committee' 
means the county committee established under section 8(b) of 
the Soil Conservation and Domestic Allotment Act (16 U.S.C. 
590h(b)) for the county in which the farm is administratively 
located. 
"(2) OILSEED.—The term 'oilseed' means a crop of soybeans, 
sunflower seed, rapeseed, canola, safflower, flaxseed, mustard 
seed, or, if designated by the Secretary, other oilseeds. 
"(3) PROGRAM CROP.—The term 'program crop' means a crop 
of wheat, corn, grain sorghums, oats, barley, upland cotton, or 
rice. 
"SEC. 503. CROP ACREAGE BASES. 
7 USC 1463. 
"(a) E^STABUSHMENT.— 
"(1) IN GENERAL.—The Secretary shall provide for the 
establishment and maintenance of crop acreage bases for each 
progrgim crop, including any program crop produced under an 
established practice of double cropping. 
"(2) LIMITATION.—The sum of the crop acreage bases on the 
farm may not exceed the cropland on the farm, except to the 
extent there is an established practice of double cropping on the 
farm. 
"(3) DEFINITION OP DOUBLE CROPPING.—As used in this subsec-
tion, the term 'double cropping' means a farming practice, as 
defined by the Secretary, that has been carried out on a farm 
during at least 3 of the 5 crop years immediately preceding the 
crop year for which the crop acreage base for the farm is 
established. 
"(b) CALCULATION.— 
"(1) IN GENERAL.—Except as provided in paragraph (2), the 
crop acreage base for each program crop for a farm for a crop 
year shall be the number of acres that is equal to the average of 
the acreage planted and considered planted to the program crop 
for harvest on the farm in each of the 5 crop years preceding the 
crop year. 
"(2) COTTON AND RICE.— 
"(A) IN GENERAL.—In the case of upland cotton and rice, 
except as provided in subparagraph (B), the crop acreage 
base for such crop shall be equsd to the average of the 
acreage planted and considered planted to such crop for 
harvest on the farm in each of the 3 crop years preceding 
such crop year. 
"(B) EXCEPTION.— 
104 STAT. 3492 
PUBLIC LAW 101-624—NOV. 28, 1990 
"(i) 1991 CROPS.—In the case of each of the 1991 crops 
of upland cotton and rice, if the producers on a farm 
did not participate in the production adjustment pro-
gram established for the 1989 and 1990 crops of upland 
cotton and rice, respectively, the crop acreage base for 
the 1991 crop shall be equal to the average of the 
acreage planted and considered planted to such crop for 
harvest on the farm in each of the 5 crop years preced-
ing the 1991 crop year, excluding all crop years in 
which planted and considered planted acreage was not 
established for the farm. Any crop acreage base estab-
lished in accordance with this subparagraph shall not 
exceed a number of acres equal to the average of the 
acreage planted and considered planted to such crop for 
harvest on the farm in each of the 2 crop years preced-
ing the 1991 crop year. 
"(ii) 1992 CROPS.—In the case of each of the 1992 crops 
of upland cotton and rice, if the producers on a farm 
did not participate in the production adjustment pro-
gram established for the 1990 and 1991 crops of upland 
cotton and rice, respectively, the crop acreage base for 
the 1992 crop shall be equal to the average of the 
acreage planted and considered planted to such crop for 
harvest on the farm in each of the 5 crop years preced-
ing the 1992 crop year, excluding all crop years in 
which planted and considered planted acreage was not 
established for the farm. Any crop acreage base estab-
lished in accordance with this subparagraph shall not 
exceed a number of acres equal to the average of the 
acreage planted and considered planted to such crop for 
harvest on the farm in each of the 2 crop years preced-
ing the 1992 crop year. 
"(c) ACREAGE CONSIDERED PLANTED.—For purposes of this Act, 
acreage considered planted to a program crop shall consist o
f
— 
"(1) any reduced acreage £ind diverted acreage on the farm; 
"(2) any acreage on the farm that producers were prevented 
from planting to the crop because of drought, flood, or other 
natural disaster, or other condition beyond the control of the 
producers; 
"(3) acreage in an amount equal to the difference between the 
permitted acreage for a program crop and the acreage planted 
to the crop, if the acreage considered to be planted is devoted to 
conservation uses or the production of commodities permitted 
by the Secretary under the 0/92 or 50/92 programs established 
for any of the 1991 through 1995 crops of wheat, feed grains, 
upland cotton, and rice established under sections 107B(cXlXE), 
105B(cXlXE), 103B(cXlXD), and lOlB(cXlXD), respectively; 
"(4) acreage in an amount equal to the difference between the 
permitted acreage for a program crop and the acreage planted 
to the crop, if the acreage considered to be planted is devoted to 
the production of commodities in accordance with section 504; 
"(5) any acreage on the farm that the Secretary determines is 
necessary to be included in establishing a fair and equitable 
crop acreage base; 
(6) the crop acreage base for the crop, if producers on the 
farm forgo receiving any payments under the program estab-
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3493 
lished under title I for the crop and certify that no acresige on 
the farm was planted to— 
"(A) the crop; or 
"(B) any fruit or vegetable crop (including potatoes and 
dry edible beans) not designated as an industrial or experi-
mental crop by the Secretary, in excess of normal plantings; 
and 
"(7) £iny acreage on the farm for which the crop acreage base 
for the crop on the farm was adjusted because of a condition or 
occurrence beyond the control of the producer pursuant to 
subsection (h). 
"(d) CONSTRUCTION OF PLANTING HISTORY.—For the purpose of 
determining the crop acreage base for the 1991 and subsequent crop 
years for any farm, the county committee, in accordance with 
regulations prescribed by the Secretary, may construct a planting 
history for such crop if— 
"(1) planting records for such crop for any of the 5 crop years 
preceding such crop year are incomplete or unavailable; or 
"(2) during at least one but not more than 4 of the 5 crop 
years preceding such crop year, the program crop was not 
produced on the farm. 
"(e) CROP ROTATION AND OTHER FACTORS.—The Secretary shall 
make adjustments to reflect crop rotation practices and to reflect 
such other factors as the Secretary determines should be considered 
in determining a fair and equitable crop acreage base, including 
adjustments necessary to enable producers to meet the require-
ments of title XII of the Food Security Act of 1985 (16 U.S.C. 8801 et 
seq.). 
"(f) PREVENTED PLANTING.—If a county committee determines, in 
accordance with regulations prescribed by the Secretary, that the 
occurrence of a natural disaster or other similar condition beyond 
the control of the producer prevented the planting of a program crop 
on any farm within the county (or substantially destroyed any such 
program crop after it had been planted but before it had been 
harvested), the producer may plant £iny other crop, including any 
other program crop, on the acreage of such farm that, but for the 
occurrence of such disaster or other condition, would have been 
devoted to the production of a program crop. For purposes of deter-
mining the crop acreage base, any acreage on the farm on which a 
substitute crop, including any progrsim crop, is planted under this 
subsection shall be taken into account as if such acreage had been 
planted to the program crop for which the other crop was sub-
stituted. 
"(g) SUBSEQUENT CROP YEARS.—A producer who is eligible to 
receive a deficiency pajmient for any program crop or crop of extra 
long staple cotton in any crop year with respect to a farm may not 
use the acreage planted or considered planted to any program crop 
or crop of extra long staple cotton on the farm in the crop year to 
increase any crop acreage base established for the farm in a subse-
quent crop year. 
"(h) ADJUSTMENT OF BASES.—The county committee, in accordance 
with regulations prescribed by the Secretary, may adjust any crop 
acreage base for any program crop for any farm if the crop acreage 
base for the crop on the farm would otherwise be adversely affected 
by a condition or occurrence beyond the control of the producer. 
104 STAT. 3494 
PUBLIC LAW 101-624—NOV. 28, 1990 
7 use 1464. 
"SEC. 504. PLANTING FLEXIBILITY. 
"(a) IN GENERAL.—The producers on a farm may, in accordance 
with this section, plant for harvest on the crop acreage base estab-
lished for a program crop a commodity, other than the specific 
program crop, without suffering a reduction in the crop acreage base 
as a result of the production. 
"OJ) SPECIFIED COMMODITIES.— 
"(1) PERMITTED CROPS.—Except as provided in paragraph (2), 
for purposes of this section, the commodities that may be 
planted for harvest on a crop acreage base are— 
"(A) any program crop; 
"(B) any oilseed; 
"(C) any industrial or experimental crop designated by 
the Secretary; and 
"(D) any other crop, except any fruit or vegetable crop 
(including potatoes and dry edible beans) not designated by 
the Secretary as— 
"(i) an industrial or experimental crop; or 
"(ii) a crop for which no substantial domestic produc-
tion or market exists. 
"(2) LIMITATION.—For purposes of this section, the Secretary 
may, at the discretion of the Secretary, prohibit the planting on 
^ 
a crop acreage base of any crop specified in paragraph (1). 
"(3) NOTIFICATION.—With regard to commodities that may be 
planted pursuant to this subsection, the Secretary shall make a 
determination in each crop year of the commodities that may 
not be planted pursuant to this subsection and shall make 
available a list of the commodities. 
"(c) LIMITATION ON ACREAGE.— 
"(1) IN GENERAL.—Except as provided in paragraph (2), the 
quantity of the crop acreage base that may be planted to a 
commodity, other than the specific program crop, under this 
section may not exceed 25 percent of the crop acreage base. 
"(2) EXCEPTION FOR SOYBEANS.—If on January 1 of any cal-
endar year the Secretary estimates that the national average 
price of soybeans during the following marketing year for soy-
beans would be less than 105 percent of the nonrecourse loan 
level for soybeans established in section 205 if soybeans were 
allowed to be planted on up to 25 percent of the crop acreage 
base under this section, the quantity of the crop acreage base 
that may be planted to soybeans under this section may not 
exceed 15 percent of the crop acreage base. 
"(d) PLANTINGS IN EXCESS OF PERMITTED ACREAGE.—Notwithstand-
ing any other provision of this Act, producers of a program crop who 
are participating in the production adjustment program for that 
program crop under this Act shall be allowed to plant that program 
crop in a quantity that exceeds the permitted acreage for that crop 
without losing their eligibility for loans, purchases, or payments 
with respect to that crop under this Act i
f
— 
"(1) the acreage planted to the program crop on the farm in 
excess of the permitted acreage does not exceed 25 percent of 
the crop acreage beises on the farm for other program crops; and 
"(2) the producer agrees to a reduction in permitted acreage 
for the other program crops produced on the farm by a quantity 
equal to the overplanting. 
"(e) LOAN EuGiBiLiTY.— 
'iS^f'^-f 
• -.-^•<fc^'^^-4-/i-.-£: ^<.t--' -^ 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3495 
"(1) IN GENERAL.—Producers of a specific program crop (re-
ferred to in this subsection as the 'original program crop') who 
plant for harvest on the crop acreage base established for such 
original progrgim crop another program crop in accordance with 
this section and who are not participants in the program estab-
lished for such other program crop shall be eligible to receive 
loans, purchases, or loan deficiency payments for such other 
program crop on the same terms and conditions as are provided 
to participants in a production adjustment progreim established 
for such other progrgim crop. 
"(2) REQUIREMENTS.—Producers shall be eligible to receive 
loans, purchases, or loan deficiency payments under this subsec-
tion if the producers— 
"(A) plant such other program crop in an amount that 
does not exceed 25 percent of the crop acreage base estab-
lished for the original program crop; and 
"(B) agree to a reduction in the permitted acreage for the 
original program crop for the particular crop year. 
"SEC. 505. FARM PROGRAM PAYMENT YIELDS. 
7 USC 1465. 
"(a) ESTABUSHMENT.—The Secretary shall provide for 
the 
establishment of a farm program payment j'ield for each farm for 
each program crop for each crop year in accordance with subsection 
(b)or(c). 
"(b) 
FARM PROGRAM PAYMENT YIELDS BASED ON 1990 
CROP 
YEAR.— 
"(1) IN GENERAL.—If the Secretary determines that farm pro-
gram payment yields shall be established in accordance with 
this subsection, except as provided in paragraphs (2) and (3), the 
farm program pajmient yield for each of the 1991 through 1995 
crop years shall be the farm program payment yield for the 
1990 crop year for the farm. 
"(2) ADDITIONAL YIELD PAYMENTS.—In the case of each of the 
1991 through 1995 crop years for a commodity, if the farm 
program payment yield for a farm is reduced more than 10 
percent below the farm program payment yield for the 1985 
crop year, the Secretary shall make available to producers 
established price pa5rments for the commodity in such amount 
as the Secretary determines is necessary to provide the same 
total return to producers as if the farm program pajonent yield 
had not been reduced more than 10 percent below the farm 
program pajnnent 3deld for the 1985 crop year. The pajnnents 
shall be made available not later than the time final deficiency 
pa3niients are made. 
"(3) No CROP O
R YIELD AVAILABLE.—If no crop of the commod-
ity was produced on the farm or no farm program pa3nnent 
5deld was established for the farm for any of the 1981 through 
1985 crop years (or, as appropriate, the 1986 through 1990 crop 
years), the farm program pa3mient yield shall be established on 
the basis of the average farm program pajonent jdeld for the 
crop years for similar farms in the area. 
"(4) NATIONAL, STATE, OR COUNTY YIELDS.—If the Secretary 
determines the action is necessary, the Secretary may establish 
national. State, or county program pajonent jdelds on the basis 
of— 
104 STAT. 3496 
PUBLIC LAW 101-624—NOV. 28, 1990 
"(A) historical yields, as adjusted by the Secretary to 
correct for abnormal factors affecting the yields in the 
historical period; or 
"(B) the Secretary's estimate of actual jdelds for the crop 
year involved if historical jdeld data is not available. 
"(5) BALANCING YIELDS.—If national, State, or county pro-
gram payment yields are established, the farm progrgmi pay-
ment jdelds shall balance to the national. State, or county 
program payment yields. 
"(c) DETERMINATION OF YIELDS.— 
"(1) ACTUAL YIELDS.—With respect to the 1991 and subsequent 
crop years, the Secretary may— 
"(A) establish the farm program pa5niient yield as pro-
vided in subsection (a); or 
"(B) establish a farm program payment jdeld for any 
program crop for any farm on the basis of the average of 
the yield per harvested acre for the crop for the farm for 
each of the 5 crop years immediately preceding the crop 
year, excluding the crop year with the highest 5deld per 
harvested acre, the crop year with the lowest 5deld per 
harvested acre, and any crop year in which such crop was 
not planted on the farm. 
"(2) PRIOR YIELDS.—For purposes of the preceding sentence, 
the farm program payment yield for the 1986 crop year and the 
actual yield per harvested acre with respect to the 1987 and 
subsequent crop years shall be used in determining farm pro-
gram payment yields. 
"(3) REDUCTION LIMITATION.—Notwithstanding any other 
provision of this paragraph, for purposes of establishing a farm 
program payment 3deld for any program crop for any farm for 
the 1991 and subsequent crop years, the farm program payment 
yield for the 1986 crop year may not be reduced more than 10 
percent below the farm program pa5mient 5deld for the farm for 
the 1985 crop year. 
"(4) ADJUSTMENT OF YIELDS.—The county committee, in 
accordance with regulations prescribed by the Secretary, may 
adjust any farm program payment yield for any program crop 
for any farm if the farm program payment jdeld for the crop on 
the farm does not accurately reflect the productive potential of 
the farm. 
"(d) ASSIGNMENT OF YIELDS.—In the case of any farm for which 
the actual yield per harvested acre for any program crop referred to 
in subsection (c) for any crop year is not available, the county 
committee may assign the farm a 5deld for the crop for the crop year 
on the basis of actual yields for the crop for the crop year on similar 
farms in the area. 
"(e) ACTUAL YIELD DATA.— 
"(1) PROVISION.—The Secretary shall, under such terms and 
conditions as the Secretary may prescribe, allow producers to 
provide to county committees data with respect to the actual 
3deld for each farm for each program crop. 
"(2) MAINTENANCE.—The Secretary shall maintain the data 
for at least 5 crop years after receipt in a manner that will 
permit the data to be used, if necessary, in the administration of 
the commodity programs. 
"(3) NOTIFICATION.—The Secretary shall provide timely 
notification to producers of the provisions of this subsection. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3497 
"SEC. 506. PLANTING AND PRODUCTION HISTORY OF FARMS. 
^ USC 1466. 
"Each county committee, in accordance with regulations pre-
scribed by the Secretary, may require any producer who seeks to 
establish a crop acreage iDase or farm program payment jdeld for a 
farm for a crop year to provide planting and production history of 
the farm for each of the 5 crop years immediately preceding the crop 
year. 
"SEC. 507. ESTABLISHMENT OF BASES AND YIELDS BY COUNTY COMMIT- 
7 USC 1467. 
TEES. 
"Each county committee may, in accordance with regulations 
prescribed by the Secretary, provide for the establishment of a crop 
acreage base, and farm program payment 3deld with respect to any 
farm administratively located within the county if the crop acreage 
base or farm program payment yield cannot otherwise be estab-
lished under this title. The crop acreage bases and farm program 
payment jdelds shall be established in a fair and equitable manner, 
but no such bases or farm program payment 5delds shall be estab-
lished for a farm if the producer on the farm is subject to sanctions 
under any provision of Federal law for cultivating highly erodible 
land or converted wetland. 
"SEC. 508. APPEALS. 
7 USC1468. 
"The Secretary shall establish an administrative appeal proce-
dure that provides for an administrative review of determinations 
made with respect to crop acreage bases and farm program payment 
yields. 
"SEC. 509. CROPS. 
7 USC 1469. 
"Notwithstanding any other provision of law, this title shall be 
effective only for the 1991 through 1995 program crops.". 
Subtitle B—Payment Limitations 
SEC. 1111. PAYMENT LIMITATIONS. 
(a) IN GENERAL.—Section 1001 of the Food Security Act of 1985 (7 
U.S.C. 1308) is amended— 
(1) in paragraph (1)— 
(A) by inserting "(A)" after the paragraph designation; 
(B) by striking "1990" and inserting "1995"; and 
(C) by adding at the end the following new subparagraph: 
"(B) Subject to sections lOOlA through lOOlC for each of the 1991 
through 1995 crops, the total amount of payments specified in 
clauses (iii), (iv), and (v) of paragraph (2XB) that a person shall be 
entitled to receive under one or more of the annual programs 
established under the Agricultural Act of 1949 (7 U.S.C. 1421 et seq.) 
for wheat, feed grains, uplsind cotton, rice, and oilseeds (as defined 
in section 205(a) of the Agricultural Act of 1949) may not exceed 
$75,000."; 
(2) in paragraph (2XA)— 
(A) by striking "1987 through 1990 crops" and inserting 
"1991 throujgh 1995 crops"; and 
(B) by striking "honey, and (with respect to clause (iiiXH) 
of subparagraph (B))" and inserting "and"; and 
(3) in paragraph (2XB)— 
104 STAT. 3498 
PUBLIC LAW 101-624—NOV. 28, 1990 
(A) by striking clause (iii) and inserting the following new 
clause: 
"(iii) any gain realized by a producer from repaying a loan for 
a crop of any commodity (other than honey) at a lower level 
than the original loan level established under the Agricultural 
Act of 1949;"; 
(B) in clause (iv)— 
(i) by striking "section 107D(cXl) or 105ac)(l)" and 
inserting "107B(cXl) or 105B(cXl); and 
(ii) by striking "section 107D(aX4) or 105C(aX3)" and 
inserting "section 107B(aX3) or 105B(aX3)"; 
(C) by striking clause (v) and inserting the following new 
clause: 
"(v) any loan deficiency payment received for a crop of wheat, 
feed grains, upland cotton, rice, or oilseeds under section 
107B(b), 105B(b), 103B(b), 101B(b), or 205(e), respectively, of the 
Agricultural Act of 1949; and"; and 
(D) in clause (vi), by striking "section 107D(g), 105C(g), 
103A(g), or 101A(g)" and inserting "section 107B(f), 105B(f), 
103B(a or lOlB(f)". 
0?) FOREIGN PERSONS.—Section lOOlC(a) of such Act (7 U.S.C. 
1308-3(a)) is amended— 
(1) by striking "1989 and 1990 crops" and inserting "1991 
through 1995 crops"; and 
(2) by inserting after "(16 U.S.C. 3831 et seq.)" the following: ", 
or under any contract entered into under title XII during the 
1989 through 1995 crop years,". 
(c) SPOUSES.—Clause (iii) of section 1001(5XB) of such Act (7 U.S.C. 
1308(5)(B)(iii)) is amended to read as follows: 
Regulations. 
"(iii) The regulations shall provide that, with respect to any 
married couple, the husband and wife shall be considered to be one 
person, except that, for the purpose of the application of the limita-
tions established under this section— 
"(I) in the case of any married couple consisting of spouses 
who, prior to their marriage, were separately engaged in unre-
lated farming operations, each spouse shall be treated as a 
separate person with respect to the farming operation brought 
into the marriage by the spouse so long as the operation re-
mains as a separate farming operation; and 
"(II) at the option of the Secretary, in the case of any married 
couple consisting of spouses who do not hold, directly or in-
directly, a substantial beneficial interest in more than one 
entity (including the spouses themselves) engaged in farm oper-
ations that £ilso receives farm program payments (as described 
in paragraphs (1) and (2)) as separate persons, the spouses may 
be considered as separate persons if each spouse meets the other 
requirements established under this section and section lOOlA 
to be considered to be a separate person.". 
(d) GROWERS OF HYBRID SEED.—Section 1001A(b) of such Act (7 
U.S.C. 1308-l(b)) is amended by adding at the end the following new 
paragraph: 
"(6) GROWERS OF HYBRID SEED.—To determine whether a 
person growing hybrid seed under contract shall be considered 
to be actively engaged in farming, the Secretary shsdl not take 
into consideration the existence of a hybrid seed contract.". 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 34^9 
(e) IRREVOCABLE TRUSTS.—Section 1001(5XBXii) of such Act (7 
U.S.C. 1308(5XBXii)) is amended by adding at the end the following 
new subparagraph: 
"(III) Notwithstanding any other provision of law, to be considered 
a separate person under this section, an irrevocable trust (other 
than a trust established prior to January 1,1987) must not allow for 
modification or termination of the trust by the grantor, allow for the 
grantor to have any future, contingent, or remainder interest in the 
corpus of the trust, or provide for the transfer of the corpus of the 
trust to the remainder beneficiary in less than 20 years from the 
date the trust is established except in cases where the transfer is 
contingent on the remainder beneficiary achieving at least the age 
of majority or is contingent on the death of the grantor or income 
beneficiary.". 
(f) MINIMAL BENEFICIAL INTERESTS.—Section 1001A(aX2) of such 
Act (7 U.S.C. 1308-l(aX2)) is amended by striking "10 percent" and 
inserting "0 to 10 percent". 
(g) EDUCATION PROGRAM.—Such Act is amended by inserting after 
section lOOlC (7 U.S.C. 1308-3) the following new section: 
"SEC. lOOlD. EDUCATION PROGRAM. 
"(a) IN GENERAL.—The Secretary shall carry out a payment provi-
sions education program for appropriate personnel of the Depart-
ment of Agriculture and members and other personnel of county 
and State committees established under section 8(b) of the Soil 
Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)), for 
the purpose of fostering more effective and uniform application of 
the payment limitations and restrictions established under sections 
1001 through lOOlC. 
"(b) TRAINING.—The education program shall provide training to 
the personnel in the fair, accurate, and uniform application to 
individual farming operations of the provisions of law and regula-
tion relating to the payment provisions of sections 1001 through 
lOOlC. 
"(c) ADMINISTRATION.—The State office of the Agricultural Sta-
bilization and Conservation Service shall make the initial deter-
mination concerning the application of payment limitations and 
restrictions established under sections 1001 through lOOlC to farm 
operations consisting of more than 5 persons, subject to review by 
the Secretary. 
"(d) COMMODITY CREDIT CORPORATION.—The Secretary shall carry 
out the program provided under this section through the Commodity 
Credit (Corporation.". 
(h) TREATMENT OF MULTIYEAR PROGRAM CONTRACT PAYMENTS.— 
Such Act (as amended by subsection (g) of this section) is further 
amended by inserting after section lOOlD the following new section: 
"SEC. lOOlE. TREATMENT OF MULTIYEAR PROGRAM CONTRACT PAY-
MENTS. 
"(a) IN GENERAL.—Notwithstanding any other provision of law, in 
the event of a transfer of ownership of land (or an ownership 
interest in land) by way of devise or descent, the Secretary of 
Agriculture may, if the new owner succeeds to the prior owner's 
contract entered into under title XII, make pajonents to the new 
owner under such contract without regard to the amount of pay-
ments received by the new owner under any contract entered into 
under title XII executed prior to such devise or descent. 
Government 
employees. 
Inter-
governmental 
relations. 
7 u s e 1308-4. 
7 u s e 1308-5. 
104 STAT. 3500 
PUBLIC LAW 101-624—NOV. 28, 1990 
"Qy) LIMITATION.—Payments made pursuant to this section shall 
not exceed the amount to which the previous owner was entitled to 
receive under the terms of the contract at the time of the death of 
the prior owner.". 
(i) TREATMENT OF CASH RENT TENANTS.—Section 2 of Public Law 
7 use 1308 note. 
101-217 is amended by striking "Effective only for" and inserting 
"Effective beginning with". 
Subtitle C—Provisions Related to Agricultural 
Act of 1949 
SEC. 1121. DEFICIENCY AND LAND DIVERSION PAYMENTS. 
(a) IN GENERAL.—Section 107C of the Agricultural Act of 1949 (7 
U.S.C. 1445b-2) is amended to read as follows: 
"SEC. 107C. DEFICIENCY AND LAND DIVERSION PAYMENTS. 
"(a) DEFICIENCY PAYMENTS.— 
"(1) IN GENERAL.—If the Secretary establishes an acreage 
limitation program for any of the 1991 through 1995 crops of 
wheat, feed grains, upland cotton, or rice under this Act and 
determines that deficiency pajonents will likely be made for the 
commodity for the crop, the Secretary shall make advance 
deficiency payments available to producers for each of the 
crops. 
"(2) TERMS AND CONDITIONS.—Advance deficiency payments 
under paragraph (1) shall be made to the producer under the 
following terms and conditions: 
"(A) FORM.—Such pa3mients may be made available in 
the form o
f
— 
"(i) cash; 
"(ii) commodities owned by the Commodity Credit 
Corporation and certificates redeemable in a commod-
ity owned by the Commodity Credit Corporation, except 
that not more than 50 percent of the pajnnents may be 
made in commodities or the certificates in the case of 
any producer; or 
"(iii) any combination of clauses (i) and (ii). 
"(B) COMMODITIES AND CERTIFICATES.—If payments are 
made available to producers as provided for under subpara-
graph (AXii), such producers may elect to receive such 
payments either in the form o
f
— 
"(i) such commodities; or 
"(ii) such certificates. 
"(C) MATURITY.—Such a certificate shall be redeemable 
for a period not to exceed 3 years from the date the certifi-
cate is issued. 
"(D) STORAGE.—The Commodity Credit C!orporation shall 
pay the cost of storing a commodity that may be received 
under such a certificate until such time as the certificate is 
redeemed. 
Government 
"(E) TiMiNG.—The payments shall be made available as 
contracts. 
soon as practicable after the producer enters into a contract 
with the Secretary to participate in such program. 
"(F) AMOUNTS.—The payments shall be made available in 
such amounts as the Secretary determines appropriate to 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3501 
encourage adequate participation in the program, except 
that the amount may not exceed an amount determined by 
multipljdng— 
"(i) the estimated payment acreage for the crop; by 
"(ii) the farm program pajrment jdeld for the crop; by 
"(iiiXD in the case of wheat smd feed grains, not less 
them 40 percent, nor more than 50 percent, of the 
projected payment rate; and 
"(II) in the case of rice £ind upland cotton, not less 
than 30 percent, nor more than 50 percent, of the 
projected payment rate, 
£is determined by the Secretary. 
"(G) REPAYMENT.—If the deficiency payment payable to a 
producer for a crop, as finsilly determined by the Secretary 
under this Act, is less than the amount paid to the producer 
as an advance deficiency payment for the crop under this 
subsection, the producer shall repay an amount equal to the 
difference between the amount advanced and the amount 
finally determined by the Secretary to be payable to the 
producer as a deficiency payment for the crop concerned. 
"(H) REPAYMENT REQUIREMENT.—If the Secretary deter-
mines under this Act that deficiency payments will not be 
made available to producers on a crop with respect to which 
advance deficiency payments already have been made 
under this subsection, the producers who received the ad-
vsmce payments shall repay the payments. 
"(I) DEADUNE.—Any repayment required under subpara-
graph (G) or (H) shall be due at the end of the marketing 
year for the crop with respect to which the payments were 
made. 
"(J) NONCOMPLIANCE.—If a producer fails to comply with 
Regulations. 
requirements established under the acreage limitation pro-
gram involved after obtaining an advance deficiency 
pa3rment under this subsection, the producer shall repay 
immediately the amount of the advance, plus interest 
thereon in such gmiount as the Secretary shall prescribe by 
regulation. 
"(3) REGULATIONS.—The Secretary may issue such regulations 
as the Secretary determines necessary to carry out this section. 
"(4) COMMODITY CREDIT CORPORATION.—The Secretary shall 
carry out the program authorized by this section through the 
Commodity Credit Corporation. 
"(5) ADDITIONAL AUTHORITY.—The authority provided in this 
section shall be in addition to, and not in place of, any authority 
granted to the Secretary or the Commodity Credit Corporation 
under any other provision of law. 
"(b) LAND DIVERSION PAYMENTS.—If the Secretary makes land 
diversion payments under this Act to assist in adjusting the total 
national acreage of einy of the 1991 through 1995 crops of wheat, 
feed grains, upland cotton, or rice to desirable levels, the Secretary 
may make at least 50 percent of such payments available to a 
producer as soon as possible after the producer agrees to undertake 
the diversion of land in return for the payments. 
"(c) TIMING OF DEFICIENCY PAYMENTS.—In the case of deficiency 
payments made available to producers for any of the 1991 through 
1995 crops of wheat, feed grains, and rice which pajrments are 
calculated on the basis of the national weighted aversige market 
104 STAT. 3502 
PUBLIC LAW 101-624—NOV. 28, 1990 
price (or, in the case of rice, the national average market price) for 
the marketing year for the crop, the Secretary shall make deficiency 
payments as follows: 
"(1) A portion of the deficiency pajrment shall be made in 
advance in accordance with subsection (aX2). 
"(2) Seventy-five percent of the final projected deficiency 
pajonent for the crop, reduced by the amount of the advance, 
shall be made available as soon as practicable after the end of 
the first 5 months of the applicable marketing year. 
"(3) The remainder of the deficiency payments shall be made 
available at the end of the marketing year.". 
7 use 1445J 
(b) REPAYMENT REQUIREMENTS.— 
"ote- 
(1) IN GENERAL.—Notwithstanding any other provision of law, 
effective only for producers who are suffering financial hard-
ship, as determined by the Secretary, on a farm who received an 
advance deficiency payment for the 1988 or 1989 crop of a 
commodity and are otherwise described in paragraph (2), the 
Secretary of Agriculture— 
(A) shall not charge an annual interest rate for any 
delinquent refund for the advance deficiency pajonent in 
excess of prevailing rates for operating loans made by Farm 
Credit System institutions; 
(B) shall not withhold, in each of the 3 succeeding crop 
years, more than V
a of the farm program pa3mients other-
wise due to the producers, as a result of any delinquency in 
providing the refund; and 
(C) shall permit the producers to make the refund in 
three equal installments during each of the crop years 1990, 
1991, and 1992, if the producers enter into an agreement to 
obtain multiperil crop insurance for each of the crop years, 
to the extent that the Secretary determines is similar to 
section 107 of the Disaster Assistance Act of 1989 (7 U.S.C. 
1421etseq.). 
(2) APPLICATION.—This subparagraph shall apply if— 
(A) the producers received an advance deficiency pay-
ment for the 1988 or 1989 crop of a commodity under 
section 107aa) of the Agricultural Act of 1949 (7 U.S.C. 
1445b-2(a)); 
(B) the producers are required to provide a refund of at 
least $1,500 under subparagraph (G) or (H) of section 
107C(aX2) of such Act with respect to the advance deficiency 
payments; 
(C) the producers reside in a county, or in a county that is 
contiguous to a county, where the Secretary of Agriculture 
has found that farming, ranching, or aquaculture oper-
ations have been substantially affected as evidenced by a 
reduction in normal production for the county of at least 30 
percent during two of the three crop years 1988, 1989, and 
1990 by a natural disaster or by a major disaster or emer-
gency designated by the President under the Robert T. 
Stafford Disaster Relief and Emergency Assistance Act (42 
U.S.C. 5121 et seq.); and 
(D) the total quantity of the 1988 or 1989 crop of the 
commodity that the producers were able to harvest is less 
than the result of multiplying 65 percent of the farm 
payment jdeld established by the Secretary for the crop by 
the sum of the acreage planted for the harvest and the 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3503 
acreage prevented from being planted Ot>ecause of the disas-
ter or emergency referred to in subparagraph (O) for the 
crop. 
(c) CONFORMING AMENDMENT.—Section 1002 of the Food Security 
Act of 1985 (Public Law 99-198; 99 Stat. 1446) is amended by striking 
"Effective only for the 1986 through 1990 crops of wheat, feed 
grains, upland cotton, and rice, section" and inserting "Section". 
SEC. 1122. COMMODITY CERTIFICATES. 
(a) IN GENERAL.—Section 107E of the Agricultural Act of 1949 (7 
U.S.C. 1445b-4) is amended by adding at the end the following new 
subsection: 
"(c) The Secretary shall pay interest on the cash redemption of a 
commodity certificate issued by the Secretary to a producer who 
holds the certificate for at lesust 150 days. This subsection shall not 
apply with respect to commodity certificates issued in connection 
with the export enhancement program or the marketing promotion 
program established under the Agricultural Trade Act of 1978.". 
O
b
) SPECIAL RULES.— 
(1) IN GENERAL.—A subsequent holder of a commodity certifi-
cate issued by the Commo^ty Credit C!orporation shall be al-
lowed to exchange the expired commodity certificate under the 
same rules that apply to an original holder of the certificate. 
(2) APPLICATION AND REDEMPTION UMITATIONS.—This subsec-
tion shall only apply during the 180-day period beginning on the 
date of enactment of this Act. No person may redeem more than 
$1,000 worth of certificates under this subsection. 
(3) REDEMPTION UMITATIONS.—In no event shall a person 
receive a pajonent from the Commodity Credit Corporation for a 
certificate that is redeemed under this subsection in an amount 
greater than the price paid for the certificate by the person. No 
expired certificate sheill be exchanged under this section if the 
owner purchased the certificate after January 1,1990. 
SEC. 1123. FARMER OWNED RESERVE PROGRAM. 
Section 110 of the Agricultural Act of 1949 (7 U.S.C. 1445e) is 
amended to read as follows: 
"SEC. 110. FARMER OWNED RESERVE PROGRAM. 
"(a) IN GENERAL.—The Secretary shall formulate and administer 
a farmer owned reserve program under which producers of wheat 
and feed grains will be able to store wheat and feed grains when the 
commodities are in abundant supply, extend the time period for the 
orderly marketing of the commodities, and provide for adequate 
carryover stocks to ensure a reliable supply of the commodities. 
"(b) TERMS OF PROGRAM.— 
"(1) PRICE SUPPORT LOANS.—In carrying out this program, the 
Secretary shall provide extended price support loans for wheat 
and feed grains. An extended loan shall only be made to a 
producer after the expiration of a 9-month price support loan 
(hereafter in this section referred to as the 'original loan') made 
in accordance with this title. 
"(2) LEVEL OF LOANS.—Loans made under this section shall 
not be less than the then current level of support under the 
wheat and feed grain programs established under this title. 
"(3) OTHER TERMS AND coNornoNS.—The Secretary shall pro-
vide for— 
7 u s e 1445b-2 
note. 
7 u s e 1445k 
note. 
Effective date. 
Loan programs. 
104 STAT. 3504 
PUBLIC LAW 101-624-NOV. 28, 1990 
"(A) repajnnent of the extended price support loan 27 
months from the date on which the original loan expired 
unless, at the discretion of the Secretary, the loan has been 
extended for one 6-month period; 
"(B) a rate of interest as provided under subsection (c); 
and 
"(C) payments to producers for storage as provided in 
subsection (d). 
"(4) REGIONAL DIFFERENCES.—The Secretary shall ensure that 
producers are afforded a fair and equitable opportunity to 
participate in the program established under this section, 
taking into account regional differences in the time of harvest. 
"(c) INTEREST CHARGES.— 
"(1) LEVYING OF INTEREST.—The Secretary may charge in-
terest on loans under this section whenever the price of wheat 
or feed grains is equal to or exceeds 105 percent of the then 
current established price for the commodity. 
"(2) 90-DAY PERIOD.—If interest is levied on the loans under 
paragraph (1), the interest may be charged for a period of 90 
days after the last day on which the price of wheat or feed 
grains was equal to or in excess of 105 percent of the established 
price for the commodities. 
"(3) RATE OF INTEREST.—The rate of interest charged partici-
pants in this program shall not be less than the rate of interest 
charged by the (Commodity Credit Corporation by the United 
States Treasury, except that the Secretary may waive or adjust 
the interest as the Secretary considers appropriate to effectuate 
the purposes of this section. 
"(d) STORAGE PAYMENTS.— 
"(1) IN GENERAL.—The Secretary shall provide storage pay-
ments to producers for storeige of wheat or feed grains under the 
program established in this section in such amounts and under 
such conditions as the Secretary determines appropriate to 
encourage producers to participate in the program. 
"(2) TIMING.—The Secretary shall make storage payments 
available to participants in this program at the end of each 
quarter. 
"(3) DURATION.—The Secretary shall cease making storage 
payments whenever the price of wheat or feed grains is equal to 
or exceeds 95 percent of the then current established price for 
the commodities, and for any 90-day period immediately follow-
ing the last day on which the price of wheat or feed grains was 
equal to or in excess of 95 percent of the then current estab-
lished price for the commodities. 
"(e) EMERGENCIES.—Notwithstanding any other provision of law, 
the Secretary may require producers to repay loans made under this 
section, plus accrued interest and such other charges as may be 
required by regulation prior to the maturity date thereof, if the 
Secretary determines that emergency conditions exist that require 
that the commodity be made available in the market to meet urgent 
domestic or international needs and the Secretary reports the deter-
mination and the reasons for the determination to the President, 
the Committee on Agriculture of the House of Representatives, and 
the Committee on Agriculture, Nutrition, and Forestry of the 
Senate at least 14 days before taking the action. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3505 
"(f) QUANTITY OF COMMODITIES IN PROGRAM.—The Secretary may 
establish maximum quantities of wheat and feed grains that may 
receive loans £ind storage pa5nnents under this program as follows: 
"(1) The maximum quantities of wheat may not be established 
at less than 300 million bushels, nor more than 450 million 
bushels. 
"(2) The maximum quEintities of feed grains may not be 
established at less than 600 million bushels, nor more than 900 
million bushels. 
"(g) ANNOUNCEMENT OF PROGRAM.— 
"(1) TIME OF ANNOUNCEMENT.—The Secretary shall announce 
the terms and conditions of the producer storage program for a 
crop of wheat and feed grains by— 
"(A) in the case of wheat, December 15 of the year in 
which the crop of wheat was harvested; and 
"(B) in the case of feed grains, March 15 of the year 
following the year in which the crop of corn was harvested. 
"(2) DISCRETIONARY ENTRY.—The Secretary may make ex-
tended logins avEiilable to producers of wheat or feed grains if— 
"(A) the Secretary determines that the average market 
price for wheat or com, respectively, for the 90-day period 
prior to the dates specified in pargigraph (1) is less than 120 
percent of the current loan rate for wheat or corn, respec-
tively; or 
"(B) 8is of the appropriate date specified in paragraph (1), 
the Secretary estimates that the stocks-to-use ratio on the 
last dav of the current marketing year will be— 
'(i) in the case of wheat, more than 37.5 percent; and 
"(ii) in the case of corn, more than 22.5 percent. 
"(3) MANDATORY ENTRY.—The Secretary shall make extended 
loans available to producers of wheat or feed grains if the 
conditions specified in subparagraphs (A) and (B) of pareigraph 
(2) are met for wheat or feed grains, respectively. 
"(4) CONTENT OF ANNOUNCEMENT.—In the announcement, the 
Secretary shall specify the maximum quantity of wheat or feed 
grains to be stored under this program that the Secretary 
determines appropriate to promote the orderly marketing of the 
commodities. 
"(h) DISCRETIONARY EXIT.—A producer may repay a loan extended 
under this section at any time. 
"(i) RECONCENTRATION OF GRAIN.—The Secretary may, with the 
concurrence of the owner of grain stored under this program, recon-
centrate all such grain stored in commercial warehouses at such 
points as the Secretary considers to be in the public interest, taking 
into account such factors as transportation and normal marketing 
patterns. The Secretary shall permit rotation of stocks and facilitate Securities. 
maintenance of quality under regulations that assure that the Regulations. 
holding producer or warehouseman shall, at all times, have avail-
able for delivery at the designated place of storage both the quantity 
and quality of grain covered by the producer's or warehouseman s 
commitment. 
"(j) MANAGEMENT OF GRAIN.—Whenever grain is stored under this 
section, the Secretary may buy and sell at an equivalent price, 
allowing for the customary location and grade differentials, substan-
tially equivalent quantities of grain in different locations or ware-
houses to the extent needed to properly handle, rotate, distribute, 
and locate the commodities that the Commodity Credit Corporation 
104 STAT. 3506 
PUBLIC LAW 101-624—NOV. 28, 1990 
Effective date. 
7 u s e 1445e 
note. 
owns or controls. The purchases to offset sales shall be made within 
2 market days following the sales. The Secretary shall make a daily 
list available showing the price, location, and quantity of the trans-
actions. 
"(k) USE OF COMMODITY CREDIT CORPORATION.—The Secretary 
shall use the Commodity Credit Corporation, to the extent feasible, 
to fulfill the purposes of this section. To the maximum extent 
practicable consistent with the fulfillment of the purposes of this 
section and the effective and efficient administration of this section, 
the Secretary shall utilize the usual and customary channels, facili-
ties, and arrangements of trade and commerce. 
"(1) USE OF COMMODITY CERTIFICATES.—Notwithstanding any other 
provision of law, if a producer has substituted purchased or other 
commodities for the commodities originally pledged as collateral for 
a loan made under this section, the Secretary may allow a producer 
to repay the loan using a generic commodity certificate that may be 
exchanged for commodities owned by the Commodity Credit Cor-
poration, if the substitute commodities have been pledged as loan 
collateral and redeemed only within the same county. 
"(m) ADDITIONAL AUTHORITY.—The authority provided by this 
section shall be in addition to other authorities available to the 
Secretary for carrying out producer loan and storage operations. 
"(n) REGULATIONS.—The Secretary of Agriculture shall issue such 
regulations as are necessary to carry out this section not later than 
60 days after the date of enactment of this section. 
"(o) CROPS.—Notwithstanding any other provision of law, this 
section shall become effective December 1,1990.". 
SEC. 1124. COMPARABILITY OF STORAGE PAYMENTS. 
In making storage payments to producers under section 110 of the 
Agricultural Act of 1949 (7 U.S.C. 1445e) and to commercial 
warehousemen in accordance with the Commodity Credit Corpora-
tion Charter Act (15 U.S.C. 714 et seq.), the Commodity Credit 
Corporation and the Secretary of Agriculture shall, to the extent 
practicable, ensure that the rates of the storage pajonents made to 
producers are equivgdent to average rates paid for commercial 
storage, taking into account the current demand for storage for 
commodities, efficiency, location, regulatory compliance costs, bond-
ing requirements, and impact of user fees as determined by the 
Secretary, except that the rates paid to producers and commercial 
warehouse shall be established at rates that will result in no in-
crease in current or projected combined outlays of the Commodity 
Credit Corporation for the storage pajrments made to producers and 
commercigd warehouse as a result of the adjustment of storage rates 
under this section. 
SEC. 1125. SUPPLEMENTAL 
SET-ASIDE 
AND 
ACREAGE 
LIMITATION 
AUTHORITY. 
(a) IN GENERAL.—Section 113 of the Agricultural Act of 1949 (7 
U.S.C. 1445h) is amended to read as follows: 
"SEC. 113. SUPPLEMENTAL 
SET-ASIDE 
AND 
ACREAGE 
LIMITATION 
AUTHORITY. 
"Notwithstanding any other provision of law or prior announce-
ment made by the Secretary to the contrary, the Secretary may 
announce and provide for an acreage limitation program under 
section 105B or 107B for one or more of the 1991 through 1995 crops 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3507 
of wheat £ind feed grains if the Secretary determines that such 
action is in the pubUc interest as a result of the imposition of 
restrictions on the export of any such commodity by the President or 
other member of the executive branch of the Federal Government. 
To carry out effectively an acreage limitation program authorized 
under this section, the Secretary may make such modifications and 
adjustments in such program as the Secretary determines necessary 
because of any delay in instituting such program.". 
(b) CONFORMING AMENDMENT.—Section 1011 of the Food Security 
Act of 1985 (Public Law 99-198; 99 Stat. 1454) is amended by striking 
7 USC I445h 
"Effective for the 1986 through 1990 crops of wheat and feed grains, note. 
section" and inserting "Section". 
SEC. 1126. DISASTER PAYMENTS. 
Title II of the Agricultural Act of 1949 (as amended by section 
1001 of this Act) is further amended by adding at the end the 
following new section: 
"SEC. 208. DISASTER PAYMENTS FOR 1991 THROUGH 1995 CROPS OF PEA- 
7 USC 14461. 
NUTS, SOYBEANS, SUGAR BEETS, AND SUGARCANE. 
"(a) PREVENTED PLANTING.—If the Secretary determines that the 
producers on a farm are prevented from planting any portion of the 
acreage on the farm intended for peanuts, soybeans, sugar beets, or 
sugarcane to peanuts, soybeans, sugar beets, sugarcane, or other 
nonconserving crops because of drought, flood, or other natural 
disaster, or other condition beyond the control of the producers, the 
Secretary may make a prevented planting disaster payment to the 
producers in an amount equal to the product obtained by multiply-
ing— 
"(1) the number of acres so affected but not to exceed the 
acreage planted to peanuts, soybeans, sugar beets, or sugarcane 
for harvest (including any acreage that the producers were 
prevented from planting to the commodity or to other 
nonconserving crops in lieu of peanuts, soybeans, sugar beets, or 
sugarcane because of drought, flood or other natural disaster, or 
other condition beyond the control of the producers) in the 
immediately preceding year; by 
"(2) 75 percent of the farm program payment yield established 
by the Secretary; by 
"(3) a pa5anent rate equal to 50 percent of the loan and 
purchase level for the crop. 
"(b) REDUCED YIELDS.—If the Secretary determines that because of 
drought, flood, or other natural disaster, or other condition beyond 
the control of the producers, the total quantity of peanuts, soybeans, 
sugar beets, or sugarcane that the producers are able to harvest on 
any farm is less than the result of multipljdng 60 percent of the 
farm program pajrment yield established by the Secretary for the 
crop by the acreage planted for harvest for the crop, the Secretary 
may make a reduced jdeld disaster pajnnent to the producers at a 
rate equal to 50 percent of the loan and purchase level for the crop 
for the deficiency in production below 60 percent for the crop. 
"(c) ADJUSTMENTS.—The Secretary may make such adjustments in 
the amount of pa5nnents made available under this paragraph with 
respect to an individual farm so as to assure the equitable allotment 
of the pa3mients among producers, taking into account other forms 
of Federal disaster assistance provided to the producers for the crop 
involved. 
104 STAT. 3508 
PUBLIC LAW 101-624—NOV. 28, 1990 
Effective date. 
"(d) CROPS.—Notwithstanding any other provision of law, this 
T^raiination 
section shall be effective only for the 1991 through 1995 crops of 
peanuts, soybeans, sugar beets, and sugarcane.". 
SEC. 1127. INCREASE IN SUPPORT LEVELS. 
7 use 1422. 
Section 402 of the Agricultural Act of 1949 (7 U.S.C. 1421) is 
amended— 
(1) by inserting "(a)" after the section designation; and 
(2) by adding at the end the following new subsection: 
"(b) Effective only for the 1991 through 1995 crops of wheat, feed 
grains, cotton, and rice, the Secretary of Agriculture may provide 
for annual adjustments in the established prices for such program 
crops to reflect any change during the last calendar year ending 
before the beginning of each such crop year in the index of prices 
paid by farmers for production items, interest, taxes, and wage rates 
in such calendar year.". 
SEC. 1128. ADJUSTMENT OF SUPPORT PRICES. 
Section 403 of the Agricultural Act of 1949 (7 U.S.C. 1423) is 
amended to read as follows: 
7 u s e 1423. 
"SEC. 403. ADJUSTMENTS OF SUPPORT PRICES. 
"(a) IN GENERAL.—The Secretary may make appropriate adjust-
ments in the support price for any commodity (excluding cotton) for 
differences in grade, type, quality, location and other factors. The 
adjustments shall, so far as practicable, be made in such manner 
that the average support price for the commodity will, on the basis 
of the anticipated incidence of such factors be equal to the level of 
support determined as provided in this Act. 
(b) ADJUSTMENT IN SUPPORT PRICES FOR COTTON.—The Secretary 
may make appropriate adjustments in the support price for cotton 
for differences in quality factors and location. Beginning with the 
1991 crop, the quality differences (premiums and discounts for 
quality factors) for the upland cotton loan program shall be estab-
lished by the Secretary by giving equEil weight to (1) loan differences 
for the preceding crop, and (2) market differences for such crop in 
the designated United States spot markets. 
"(c) LIMITATION ON ADJUSTMENTS FOR WHEAT AND FEED GRAINS.— 
Notwithstanding any other provision of this section, for each of the 
1990 through 1995 crops of wheat and feed grains, no adjustment in 
the loan rate applicable to a particular region. State, or county for 
the purpose of reflecting transportation differentials may increase 
or decrease the regional, State, or county loan rate from the level 
established for the previous year by more than the percenteige 
change in the national average loan rate plus or minus 3 percent.". 
SEC. 1129. PROGRAM OPTION FOR 1996 CROPS. 
Subsection 0^) of section 406 of the Agricultural Act of 1949 (7 
U.S.C. 1426(b)) is amended to read as follows: 
"(bXD Notwithstanding any other provision of law, the Secretary 
may offer an option to producers of the 1996 crop of wheat, feed 
grains, upland cotton, extra long staple cotton, rice, or oilseeds and 
to dairy producers for the 1996 calendar year to participate in 
commodity price support, production adjustment, and pajnnent pro-
grams as provided in this subsection. 
"(2) The Secretary may offer such programs based on the terms 
and conditions as are provided in sections 101(h), lOlB, 103B, 105B, 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3509 
107B, 114, 204, and 205 of the Agricultural Act of 1949, and any 
other relevEint provisions of the Agricultural Act of 1949, as deter-
mined by the Secretary. Any established price or loan and purchase 
level made available in accordance with this subsection shall be 
established at the same level as that established for the 1995 crop or, 
in the case of milk, for the 1995 calendar year. 
"(3) The Secretary may offer each of the programs provided for by 
this subsection if the Secretary has not made final announcement of 
the terms of the commodity price support, production adjustment, or 
payment programs for the 1996 crops of wheat, feed grains, cotton, 
rice, or oilseeds, or the 1996 calendar year for dairy on or before the 
later of— 
"(A) in the case of wheat, June 1,1995; 
"(B) in the case of feed grains, September 30,1995; 
"(C) in the case of upland cotton, November 1,1995; 
"(D) in the case of extra long staple cotton, December 1, 1995; 
"(E) in the case of rice, January 31,1996; 
"(F) in the case of oilseeds, July 15,1995; and 
"(G) in the case of dairy, November 1,1995. 
"(4) Producers may not participate in such programs unless a law 
has been enacted subsequent to the date of enactment of this 
subsection that provides for loans and purchases for the 1996 crop of 
wheat, feed grains, cotton, rice, or oilseeds, or for dairy for the 1996 
calendar year. 
"(5) The Secretary may use the funds, facilities and authorities of 
the Commodity Credit Corporation in carr3dng out this subsection.". 
SEC. 1130. COMMODITY CREDIT CORPORATION SALES PRICE RESTRIC-
TIONS. 
Section 407 of the Agricultural Act of 1949 (7 U.S.C. 1427) is 
amended to read as follows: 
"SEC. 407. COMMODITY CREDIT CORPORATION SALES PRICE RESTRIC-
TIONS. 
"(a) IN GENERAL.—The Commodity Credit Corporation may sell 
any farm commodity owned or controlled by the Corporation at any 
price not prohibited by this section. 
"(b) INVENTORIES.—In determining sales policies for basic agricul-
tural commodities or storable nonbasic commodities, the Corpora-
tion should consider the establishment of such policies with respect 
to prices, terms, and conditions as the (Dorporation determines will 
not discourage or deter manufacturers, processors, and dealers from 
acquiring and carrying normal inventories of the commodity of the 
current crop. 
"(c) SALES PRICE RESTRICTIONS.— 
"(1) IN GENERAL.—Except as otherwise provided in this sec-
tion, the Corporation shall not sell any beisic agricultural 
commodity or storable nonbasic commodity at less than 115 
percent of the lower o
f
— 
"(A) the current national average price support loan rate 
for the commodity adjusted for the current market differen-
tials reflecting grade, quality, location, reasonable carrjdng 
charges, and other factors determined appropriate by the 
Corporation; or 
"(B) the loan repayment level. 
"(2) EXTRA LONG STAPLE COTTON.—The Corporation may sell 
extra long staple cotton for unrestricted use at such price as the 
104 STAT. 3510 
PUBLIC LAW 101-624—NOV. 28, 1990 
Corporation determines is appropriate to maintain and expand 
export and domestic markets. 
'(3) OILSEEDS.—The Corporation shall not sell oilseeds at less 
than the lower of— 
"(A) 105 percent of the current national average price 
support loan rate for the oilseed, adjusted for the current 
market differentials reflecting grade, quality, location, 
reasonable carrying charges, and other factors determined 
appropriate by the Corporation; or 
"(B) 115 percent of the loan repajnnent level. 
"(4) WHEAT AND FEED GRAINS.—Whenever the producer re-
serve program for wheat and feed grains established under 
section 110 is in effect, the Corporation may not sell any of its 
stocks of wheat or feed grains at a level that is less than 150 
percent of the then current loan rate for wheat or feed grains. 
"(5) UPLAND COTTON.—The Commodity Credit Corporation 
shall sell upland cotton for unrestricted use at the same price 
the Corporation sells upland cotton for export, but in no event 
at less than the amount provided for in paragraph (1). 
"(d) NoNAPPLicATiON OF SALES PRICE RESTRICTIONS.—The fore-
going restrictions of this section shall not apply to— 
"(1) sales for new or byproduct uses; 
"(2) sales of peanuts and oilseeds for the extraction of oil; 
"(3) sales for seed or feed if the sales will not substantially 
impair any price support program; 
"(4) sales of commodities that have substantially deteriorated 
in quality or as to which there is a danger of loss or waste 
through deterioration or spoilage; 
"(5) sales for the purpose of establishing claims arising out of 
contract or against persons who have committed fraud, mis-
representation, or other wrongful acts with respect to the 
commodity; 
"(6) sales for export (excluding sales of upland cotton for 
export); 
"(7) sales of wool; and 
"(8) sales for other than primary uses. 
"(e) DISTRESS, DISASTER, AND LIVESTOCK EMERC^NCY AREAS.— 
"(1) IN GENERAL.—Notwithstanding the foregoing provisions 
of this section, the Corporation, on such terms and conditions as 
the Secretary may consider in the public interest, may— 
"(A) make available any farm commodity or product 
thereof owned or controlled by the Corporation for use in 
relieving distress— 
"(i) in any area in the United States (including the 
Virgin Islands) declared by the President to be an acute 
distress area because of unemployment or other eco-
nomic cause, if the President finds that the use will not 
displace or interfere with normal marketing of agricul-
tural commodities; and 
"(ii) in connection with any major disaster deter-
mined by the President to warrant assistance by the 
Federal Government under the Disaster Relief and 
Emergency Assistance Act (42 U.S.C. 5121 et seq.); and 
"(B) donate or sell commodities in accordance with title 
VI. 
"(2) COSTS.—Except on a reimbursable basis, the Corporation 
shall not bear any costs in connection with making the commod-
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3511 
ity available under this subsection beyond the cost of the 
commodities to the Corporation in— 
"(A) the storage of the commodity; £ind 
"(B) the handling and transportation costs in making 
delivery of the commodity to designated agencies at one or 
more central locations in each State or other area. 
"(f) EFFICIENT OPERATIONS.— 
"(1) IN GENERAL.—Subject to paragraph (2), the foregoing 
restrictions of this section shall not apply to sales of commod-
ities the disposition of which is desirable in the interest of the 
effective and efficient conduct of the operations of the Corpora-
tion because of the small quantities involved, or because of age, 
location or questionable continued storability of the commodity. 
"(2) OFFSETS.—The sales shall be offset (if necessary) by the 
purchases of commodities as the Corporation determines is 
appropriate to prevent the sales from substantially impairing 
any price support program or unduly affecting market prices, 
except that the purchase price shall not exceed the Corpora-
tion's minimum sales price for the commodities for unrestricted 
use. 
"(3) COMPETITIVE BID BASIS.—Subject to the sales price restric-
tions contained in this section, the Corporation may sell any 
basic agricultural commodity or storable nonbasic commodity 
on a competitive bid basis, if the sale is determined to be 
appropriate by the Secretary. 
"(g) SALES FOR EXPORT.—For the purposes of this section, sales for 
export shall include— 
"(1) sales made on condition that the identical commodities 
sold be exported; and 
"(2) sales made on condition that commodities of the same 
kind and of comparable value or quantity be exported, either in 
raw or processed form.". 
SEC. 1131. APPLICATION OF TERMS IN THE AGRICULTURAL ACT OF 1949. 
(a) IN GENERAL.—Subsection (k) of section 408 of the Agricultural 
Act of 1949 (7 U.S.C. 1428(k)) is amended to read as follows: 
"(kXD Reference made in sections 402, 403, 406, 407, and 416 to 
the terms 'support price', 'level of support', and 'level of price 
support' shall be considered to apply as well to the loan and 
purchase level for wheat, feed grains, upland cotton, extra long 
staple cotton, honey, oilseeds £Uid rice under this Act. 
"(2) References made to the terms 'price support', 'price support 
operations', and 'price support program' in such sections and in 
section 401(a) shall be considered as applying as well to loan and 
purchase operations for wheat, feed grains, upland cotton, extra 
long staple cotton, honey, oilseeds and rice under this Act. 
"(3) Notwithstanding any other provision of law, this subsection 
shall be effective only for the 1991 through 1995 crops of wheat, feed 
grains, upland cotton, extra long staple cotton, honey, oilseeds and 
rice.". 
(b) PRODUCER.—Section 408 of such Act is amended by striking 7 use 1428. 
subsections (1) and (m) and inserting the following new subsection: 
"(1) 'Producer' shall include a person growing hybrid seed under 
contract. In determining the interest of a grower of hybrid seed in a 
crop, the Secretary shall not take into consideration the existence of 
a hybrid seed contract.". 
104 STAT. 3512 
PUBLIC LAW 101-624—NOV. 28, 1990 
SEC. 1132. PRODUCER APPEALS PROCESS. 
(a) IN GENERAL.—Title IV of the Agricultural Act of 1949 (7 U .S.C. 
1421 et seq.) is amended by adding at the end thereof the following 
new section: 
7 u s e 1433e. 
"SEC. 426. APPEALS. 
"(a) RIGHT TO APPEAL.—Any participant in any of the programs 
under this Act or any other Act administered by the Agricultural 
Stabilization and Conservation Service, or any successor agency in 
the United States Department of Agriculture (hereafter in this 
section referred to as the 'ASCS'), shall have the right to appeal any 
adverse determination made by any State or county committee 
established under section SQo) of the Soil Conservation and Domestic 
Allotment Act, by employees or agents of such committees, by other 
personnel of the ASCS, or by agents of the Commodity Credit 
Corporation under this Act or under any other Act administered by 
the ASCS. 
"(b) APPEAL PROCEDURE.— 
"(1) IN GENERAL.—Such appeal shall be made in accordance 
with this section. 
"(2) CONDITIONS OF APPEAL.—Any participant who believes 
that a proper determination has not been made with respect to 
the implementation of any program administered by the ASCS 
concerning such participant may appeal such determination as 
follows: 
"(A) if such determination was rendered by a county 
committee established under section 8(b) of the Soil Con-
servation and Domestic Allotment Act, the participant may 
appeal such determination to the applicable State commit-
tee established under section 8(b) of the Soil Conservation 
and Domestic Allotment Act; 
"(B) if such determination was rendered by a State 
committee established under section 8(b) of the Soil Con-
servation and Domestic Allotment Act, the participant may 
appeal such determination to the National Appeals Divi-
sion established in accordance with this section; and 
"(C) if such determination was rendered by any other 
employee or agent of the ASCS or the Commodity Credit 
Corporation, the participant may appeal such determina-
tion to the National Appeals Division. 
"(3) TIME OF FIUNG OF APPEAL.—A participant shall file a 
notice of appeal within a reasonable time after receiving notice 
of the adverse determination, as determined by the Secretary. 
"(c) NATIONAL APPEALS DIVISION.— 
"(1) ESTABUSHMENT.—For the purpose of hearing producer 
appeals, the Secretary shall establish and maintain within the 
ASCS, a National Appeals Division, which shall consist of a 
director, hearing officers, and such other personnel necessary to 
the administration of the division, all of whom shall be employ-
ees of the Department of Agriculture who shall have no duties 
other than hearing and determining formal appeals arising 
under this Act or any other Act administered by the Agricul-
tural Stabilization and Conservation Service, or a successor 
agency. 
"(2) HEARING OFFICERS.—Hearing officers within the National 
Appeals Division shall hear each appeal made to the National 
Appeals Division under this section. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3513 
"(3) POWERS AND DUTIES OF DIRECTOR.—The director of the 
National Appeals Division, in carrjdng out the provisions of this 
section— 
"(A) shall have access to all records, reports, audits, 
reviews, documents, papers, recommendations, or other 
material available that relate to programs and operations 
with respect to which an appeal has been taken; 
"(B) may request such information or assistance as may 
be necessary for carrying out the duties and responsibilities 
established under this section from any Federal, State, or 
local governmental agency or unit thereof; 
"(C) may require the attendance of witnesses, the produc-
tion of all information, documents, reports, answers, 
records, accounts, papers, and other data and documentary 
evidence necessary to the proper resolution of appeals; 
"(D) may, if appropriate, require the attendance of wit-
nesses and production of documentary evidence by sub-
poena, which subpoena, in the case of contumacy or refusal 
to obey, shall be enforceable by order of any appropriate 
United States district court; 
"(E) may administer oaths and affirmations, whenever 
necessary in the process of hearing appeals; 
"(F) may enter into contracts and other arrangements for 
reporting and other services and make such pajmaents as 
may be necessary to carry out the provisions of this section; 
"(G) shall issue procedural rules for the conduct of ap-
peals; and 
"(H) may delegate to hearing officers the authorities 
provided in subparagraphs (A) through (E) of this para-
graph as the Secretary determines appropriate. 
"(4) HEARINGS.— 
"(A) IN GENERAL.—The hearing shall be held at a time 
and place designated by the National Appeals Division. 
"(B) CONDUCT OF HEARING.—At a minimum, the hearing 
shall be conducted as follows: 
"(i) the participant shall be advised of the issues 
involved; 
"(ii) the participant shall be given a full opportunity 
to present facts and information relevant to the matter 
in issue and may present evidence; and 
"(iii) the hearing officer may confine the presen-
tation of facts and evidence to pertinent matters and 
may exclude irrelevant, immaterial, or unduly repeti-
tious evidence, information, or questions. 
"(C) RECORD.—At the request of the participant, each 
hearing before a hearing officer in the National Appeals 
Division shall be recorded verbatim by voice recorder, 
stenographer, or other method. A transcript of the hearing, 
together with all documents and evidence submitted shall 
be made available to the participant, on request, if the 
decision of the hearing officer is appealed. The record of the 
hearing shall consist of copies of all documents and other 
evidence presented to the hearing officer and the transcript 
of the hearing, if prepared. 
,,, 
"(5) REVIEW OF DECISION.— 
104 STAT. 3514 
PUBLIC LAW 101-624—NOV. 28, 1990 
"(A) IN GENERAL.—The director of the National Appeals 
Division shall make all determinations with respect to the 
appeals submitted to the Division for review. 
"(B) PROCEDURE.—In submitting an appeal for the deter-
mination of the director, the hearing officer shall certify 
the record and deliver or otherwise provide the certified 
record to the director. 
"(C) BASIS OF REVIEW.—The National Appeals Division 
shall base its review of the hearing on the transcript of the 
hearing and the evidence presented to the hearing officer, 
except that the director of the National Appeals Division 
may order that further proceedings be had in order that the 
record presented for review by the National Appeals Divi-
sion may be complete or in order to hear new or additional 
evidence. 
"(6) INDEPENDENCE OF DIVISION.—All hearing officers within 
the National Appeals Division shall report to the principal 
officers of the division and shall not be under the direction or 
control of, or receive administrative support (except on a re-
imbursable basis) from, offices other than the National Appeals 
Division. 
"(7) FiNAUTY OF DECISIONS.—Except as provided in subsection 
(e), determinations of the director of the National Appeals 
Division shall be final, conclusive, and binding on the Depart-
ment of Agriculture, including the Commodity Credit Corpora-
tion, and any agency thereof. 
"(d) COURT REVIEW.—Final decisions of the Department of Agri-
culture under the process provided for in this section shall be 
reviewable by a United States court of competent jurisdiction. 
"(e) PARTICIPANT.—For the purposes of this section, a participant 
means any person whose right to participate in, or receive pajnnents 
or other benefits in accordance with, any of the programs under this 
Act or any other Act administered by the ASCS is adversely affected 
by a determination of any State or county committee established 
under section 8(b) of the Soil CJonservation and Domestic Allotment 
Act, by employees or agents of such committees, by other personnel 
of the ASCS, or by agents of the Commodity Credit Corporation 
under this Act or under any other Act administered by the ASCS. 
"(f) DELEGATION OF AUTHORITY.—Nothing contained in this section 
shall preclude the Secretary, the Administrator of the ASCS, or the 
Executive Vice President of the Commodity Credit Corporation from 
determining at any time any question arising under the programs to 
which the provisions of this section apply or from reversing or 
modifjdng (in writing, with sufficient reason given therefor) any 
determination made by a county or State committee or the director 
of the National Appeals Division. 
"(g) DECISIONS OF STATE AND COUNTY COMMITTEES.—Decisions of 
the State and County Committees established under section 8(b) of 
the Soil Conservation and Domestic Allotment Act, or employees of 
such committees made in good faith in the absence of misrepresenta-
tion, false statement, fraud, or wilful misconduct, unless otherwise 
appealed under this section, shall be final, unless otherwise modified 
under subsection (f) within 90 days, and no action shall be taken to 
recover amounts found to have been disbursed thereon in error 
unless the producer had reason to believe that the decision was 
erroneous. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3515 
7 u s e 1433e 
note. 
"(h) REGULATIONS.—The Secretary may issue such regulations as 
are determined necessary to implement the provisions of this sec-
tion, including regulations governing the conduct of appeals made 
before State and county committees established under section 8(e) of 
the Soil Conservation and Domestic Allotment Act.". 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 
shall not apply to any appeal or proceeding with respect to any 
adverse determination made by any State or county committee 
established under section 8(b) of the Soil Conservation and Domestic 
Allotment Act (16 U.S.C. 590h(b)), by employees or agents of the 
committees, by other personnel of the the Agricultursd Stabilization 
and Conservation Service, or by agents of the Commodity Credit 
Corporation prior to the date of enactment of this Act. 
(c) GOOD FAITH REUANCE.—Section 326 of the Food and Agri-
culture Act of 1962 (7 U.S.C. 1339c) is amended to read as follows: 7 use I339a. 
"SEC. 326. GOOD FAITH RELIANCE. 
"Notwithstanding any other provision of law, to the extent the 
Secretary of Agriculture considers it desirable in order to provide 
fair £ind equitable treatment, the Secretary may msike price support 
or other payments available to farmers who have, in attempting to 
comply with the requirements of any price support or other program 
administered by the Secretary or any other requirements in law 
affecting such person's eligibility under such programs, taken ac-
tions in good faith in reliance on the action or advice of an au-
thorized representative of the Secretary. The Secretary may provide 
such price support or other payments to the extent the Secretary 
determines such farmer has been injured by such good faith reliance 
and may require such farmer to take necessary actions designed to 
remedy any failure to comply with such programs.". 
Subtitle D—Miscellaneous Commodity 
Provisions 
SEC. 1141. NORMALLY PLANTED ACREAGE. 
Section 1001 of the Food and Agriculture Act of 1977 (7 U.S.C. 
1309) is amended— 
(1) by striking "1990" each place it appears and inserting in 
lieu thereof "1995"* and 
(2) in subsection (cX2), by striking "section 107D(dX3XA)" and 
inserting "section 107B(dX3XA)". 
SEC. 1142. NORMAL SUPPLY. 
Section 1019 of the Food Security Act of 1985 (7 U.S.C. 1310a) is 
amended by striking "1990" and inserting "1995". 
SEC. 1143. FOOD SECURITY WHEAT RESERVE. 
(a) EXTENSION.—Section 302(i) of the Food Security Wheat Reserve 
Act of 1980 (7 U.S.C. 1736f-l(i)) is amended by striking "1990" both 
places it appears and inserting "1995". 
(b) REPLENISHMENT.—Section 302(bX2) of such Act is amended— 
• (1) by redesignating subparagraphs (A) and (B) as clauses (i) 
and (ii), respectively; 
(2) by inserting "(A)" after the paragraph designation; 
(3) by adding at the end the following new subparagraph: 
39-194 O - 91 - 7 : QL 3 Part 5 
104 STAT. 3516 
PUBLIC LAW 101-624—NOV. 28, 1990 
"(B) Not later than 18 months after the release of stocks from the 
reserve, the Secretary of Agriculture shall replenish the reserve— 
"(i) through purchases under subparagraph (AXi), to the 
extent of available appropriations; or 
"(ii) by designating an equivalent quantity of wheat from 
uncommitted stocks of the Commodity Credit Corporation, to 
the extent sufficient appropriations are not available under 
subparagraph (AXi), except to the extent that the Secretary 
reports to the Committee on Agriculture of the House of Rep-
resentatives and the (Dommittee on Agriculture, Nutrition, and 
Forestry of the Senate that there are not sufficient uncommit-
ted stocks of the Commodity Credit Corporation available.". 
SEC. 1144. DETERMINATIONS OF THE SECRETARY. 
Section 1017(b) of the Food Security Act of 1985 (Public Law 99-
7 use 1385 note. 
198; 99 Stat. 1459) is amended by striking "1986 through 1990" and 
inserting "1991 through 1995". 
SEC. 1145. NATIONAL AGRICULTURAL COST OF PRODUCTION STANDARDS 
REVIEW BOARD. 
(a) MEMBERSHIP.—The first sentence of section 1006(aXl) of the 
Agriculture and Food Act of 1981 (7 U.S.C. 4102(aXl)) is amended by 
striking "seven members who are engaged in the commercial 
production of one or more of the various major agricultural 
commodities produced in the United States" and inserting "seven 
members who, individually or as a group, are eng£iged in the 
commercial production of each of the program crops and in one or 
more of the other various major agricultural commodities produced 
in the United States". 
(b) EXTENSION.—Section 1014 of the Agriculture and Food Act of 
1981 (7 U.S.C. 4110) is amended by striking "1990" and inserting 
"1995". 
SEC. 1146. ASSIGNMENT OF PAYMENTS. 
Subsection (g) of section 8 of the Soil Conservation and Domestic 
Allotment Act (16 U.S.C. 590h(g)) is amended to read as follows: 
"(g) A payment that may be made to a producer under this section 
may be assigned only in accordance with regulations issued by the 
Secretary. This subsection shall not authorize any suit against or 
impose any liability on the Secretary, any disbursing agent, or any 
agency of the United States if pa3anent is made to the producer 
without regard to the existence of any such assignment.". 
7 u s e 1421a. 
SEC. 1147. FINANCIAL IMPACT STUDY. 
(a) STUDY.—The Secretary of Agriculture shall conduct an annual 
study of the financial impact of the support levels established and 
announced by the Secretary under programs contained in the Agri-
cultural Act of 1949 (hereafter in this section referred to as "pro-
grams"), including a study of the effect of the support levels on the 
ability of producers to meet their financial obligations (with special 
emphasis on borrowers from the Farmers Home Administration and 
the Farm Credit System). 
(b) REPORT.—The Secretary shall ginnually prepare a report 
containing the results of the study and submit the report to the 
C!ommittee on Agriculture of the House of Representatives and the 
Committee on Agriculture, Nutrition, and Forestry of the Senate, 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3517 
not later than the date of the final announcement for the programs 
by the Secretary for any 1 year. 
(c) INFORMATIONAL PURPOSES.—The study under this section 
(including the study of the effect of the support levels on the ability 
of producers to meet their financial obligations) shall be only for 
informational purposes and for Congressional oversight and sh£ill 
not give rise to any cause of action, be a basis for, or be used as 
evidence in support of, any claim or right of any person, including 
farmers and borrowers, in any administrative or judicial proceeding. 
SEC. 1148. SURVEY OF PROGRAM PARTICIPANTS. 
7 USC 1421 note. 
(a) SURVEY.—The Secretary of Agriculture (hereafter in this sec-
tion referred to as the "Secretary ) shall provide that producers, 
during the sign-up period for commodity programs under the Agri-
cultural Act of 1949 (7 U.S.C. 1441) in the 1992 calendar year, 
complete a survey regarding the preference of the producers, either 
to increase the efficiency of their farming operation or to assist in 
meeting conservation requirements for the farm, for the redistribu-
tion of any crop acreage bases on each producer's farm. The survey 
shall include questions designed to determine whether the produc-
ers would prefer to redistribute their current crop acreage bases— 
(1) in different proportions among the program crops for 
which the producers currently have a crop acreage base; 
(2) among program crops for which the producers currently do 
not have a crop acreage base; or 
(3) in some combination of the options provided under para-
graphs (1) and (2), 
without exceeding total cropland of the farm. The survey shall be 
prepared and administered by the Agricultural Stabilization and 
Conservation Service, and conducted in every county where sign-ups 
for Federal commodity programs are administered. 
(b) ANALYSIS OF DATA.—The Secretary shall compile and analyze 
the data collected from the survey required under subsection (a) to 
determine— 
(1) the potential increases and decreases in State, regional, 
and national acreage that would be planted to various program 
crops if producers were given the option to redistribute their 
current crop acreage bases as indicated by the survey conducted 
under subsection (a); 
(2) the potential commodity program costs or savings if 
producers were allowed to implement the redistribution of such 
crop acreage bases as described in paragraph (1); 
(3) the potential impact of such a redistribution of crop acre-
age bases on the competitiveness of United States agriculture in 
world markets; and 
(4) such other consequences of such a redistribution of crop 
acreage bases that the Secretary determines to be of signifi-
cance to United States agriculture. 
(c) REPORT.—Not later than January 31, 1993, the Secretary shall 
submit to the Committee on Agriculture of the House of Representa-
tives and the Committee on Agriculture, Nutrition, and Forestry of 
the Senate a report on the results of the survey conducted under 
subsection (a). The report shall— 
(1) include a compilation of the data collected pursuant to the 
survey conducted under subsection (a); 
(2) include the results of the analysis and determinations 
required under subsection (b); 
104 STAT. 3518 
PUBLIC LAW 101-624—NOV. 28, 1990 
Options Pilot 
Program Act of 
1990. 
7 u s e 1421 note. 
Government 
contracts. 
(3) provide a summary of such data and determinations on a 
program crop-by-program crop and State-by-State basis; and 
(4) provide such other recommendations or information as the 
Secretary determines appropriate. 
Subtitle E—Options Pilot Program 
SEC. 1151. SHORT TITLE. 
This subtitle may be cited as the 
1990". 
'Options Pilot Program Act of 
SEC. 1152. PURPOSES. 
It is the purpose of this subtitle to require the Secretarv of 
Agriculture (hereinafter in this subtitle referred to as the 
Sec-
retary") to conduct research necessary— 
(1) to ascertain whether futures options trading would provide 
reasonable protection to producers from fluctuations in the 
value of the commodities they produce; 
(2) to ascertain whether producers will accept and fully utilize 
this method of price protection if information is provided to the 
producers concerning its proper use; and 
(3) to determine the effect widespread adoption of such fu-
tures options trading program would have on commodity prices. 
SEC. 1153. OPTIONS PILOT PROGRAM. 
(a) IN GENERAL.—To determine whether regulated agricultural 
commodity options trading can be used by producers to obtain 
protection from fluctuations in the market prices of the commodities 
they produce and the impact of such trading on the prices of the 
commodities, the Secretary shall conduct a pilot program for each of 
the 1991 through 1995 crops of corn and for each of the 1993 through 
1995 crops of wheat and soybeans. 
O?) COUNTIES.—The Secretary shall conduct the pilot program in 
various counties that produce significant quantities of the 1991 
through 1995 crops of corn, and significant quantities of the 1993 
through 1995 crops of wheat and soybeans. For the 1991 crop year, 
the Secretary shall select not less than three counties in each of 
three major corn-producing States to conduct the pilot program for 
corn for the crop year. The Secretary may add additional States and 
counties to the program in succeeding crop years. 
(c) BROKERS.—Trades under the pilot program conducted under 
this subtitle shall be carried out through registered commodity 
brokers who choose to participate in the program. 
(d) EUGIBLE PRODUCER PARTICIPANTS.—The Secretary shall con-
tract with eligible producers who wish to participate in the program 
and who are located in the counties selected for the pilot program. 
The contracts shall set forth the terms and conditions for participa-
tion in the pilot program, including a provision that the contract 
may be terminated by any participating producer at any time prior 
to receiving payments for options contracted for under the pilot 
program. 
SEC. 1154. TERMS AND CONDITIONS. 
(a) EuGiBiLiTY REQUIREMENTS.— 
(1) IN GENERAL.—To be eligible to participate in the pilot 
program conducted under this subtitle, a producer shall meet 
A 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3519 
all of the eligibility requirements specified in this subtitle, and 
the regulations issued pursuant to this subtitle. 
(2) PARTICIPATION IN PRICE SUPPORT PROGRAMS.—The regula-
tions shall specify to what degree participation in the price 
support and production adjustment program established for the 
applicable crop of the commodity shall be required for participa-
tion in the pilot progrgim. 
(3) ADDITIONAL REQUIREMENTS.—To be eligible to participate 
in the pilot program, a producer shall— 
(A) attend not less than one seminar conducted by the 
Cooperative Extension Service; 
(B) maintain a separate brokerage account for the pur-
pose of trading futures and options contracts covered by the 
pilot program; and 
(C) compile, maintain, and submit (or authorize the com-
pilation, maintenance, and submission) of such documenta-
tion as the regulations governing the program may require 
to permit a proper record to be kept of the results of all 
cash, futures, or options trading that may be undertaken 
under the pilot program by the producer. 
(b) PROGRAM TERMS AND CONDITIONS.—The Secretary shall issue 
regulations or develop contract forms, or both, that set forth the 
terms and conditions of the program, and the rights and obligations 
of all of the parties participating in the program (including produc-
ers and registered brokers). At a minimum, the terms and conditions 
shall include the following: 
(1) CONTRACT MONTHS AND STRIKE PRICES.— 
(A) IN GENERAL.—The contract months and options strike 
prices at which participating producers may buy commod-
ity put options in order to receive payments to cover the 
premiums on the options for each of the 1991 through 1995 
crops of corn, and for each of the 1993 through 1995 crops of 
wheat and soybeans. 
(B) TARGET PRICE AND LOAN RATE STRIKE PRICES.—The 
pilot program shall provide— 
(i) a target price strike price for put options that is 
equivalent to the target price for the commodity in-
volved; and 
(ii) a loan rate strike price that is equivalent to the 
loan rate for the commodity involved. 
(C) OTHER OPTIONS STRIKE PRICES.—Other options strike 
prices for commodities included in the program may be 
used if the prices are selected and agreed on by the Sec-
retary and the representatives of the commodity futures 
trading industry designated in accordance with section 
1155(a). 
(2) EuGiBLE PORTION OF CROP.—The portion of the crop of an 
eligible producer that may be used as a basis for acquiring 
options contracts. 
(3) PUT OPTIONS CONTRACTS.—The time when, and the manner 
in which, put options contracts shall be acquired, held, and 
liquidated by producers to meet program requirements. 
(4) PROGRAM BENEFITS.— 
(A) IN GENERAL.—The program benefits to be offered 
participating producers shall include the cost of option 
premiums and payments of not more than 15 cents per 
Regulations. 
Records. 
Regulations. 
104 STAT. 3520 
PUBLIC LAW 101-624—NOV. 28, 1990 
bushel to cover transaction fees, interest, and other ex-
penses. 
(B) RELATIVE BENEFITS.—The Secretary shall inform 
participants that their participation is voluntary and that 
neither the United States, the Commodity Credit Corpora-
tion, nor representatives of the futures industry can 
guarantee that the participants will be better or worse off 
financially as a result of participation in the pilot program 
than the participants would be if the participants partici-
pated solely in price support and production adjustment 
programs carried out by the Secretary and the Commodity 
Credit Corporation. 
SEC. 1155. COMMODITY FUTURES TRADING INDUSTRY. 
(a) CONSULTATION.—The Secretary or the Secretary's designees 
may consult with representatives of the commodity futures trading 
industry who are specialists in the trading of futures contracts and 
futures options contracts, and who are designated by the regulated 
commodity futures markets that choose to participate in the pilot 
program. 
(b) PROCEDURE.—The designations and consultations may be held 
without regard to the Federal Advisory Committee Act (5 U.S.C. 
App. 2). Such Act shall not be applicable to the pilot program 
carried out under this subtitle, or to the meetings of representatives 
of the commodity futures trading industry with the Secretary or the 
Secretary's designees relating to this subtitle. 
SEC. 1156. COMMODITY CREDIT CORPORATION. 
(a) IN GENERAL.—The pilot program established under this sub-
title shall be carried out by and through the Commodity Credit 
Corporation. 
O
b
) FUNDS.—The Corporation shall expend such funds £is may be 
required to conduct the pilot program for futures options contract 
trading in the manner specified in this subtitle and the regulations 
issued, and contracts entered into, to carry out this subtitle, except 
that funds of the Corporation may not be used to carry out this 
subtitle unless the Corporation has received funds to cover such 
expenditures from appropriations made in advance to carry out this 
subtitle. 
(c) CONTRACTS.—Contracts entered into under this subtitle shall be 
considered to be program benefit contracts of the Commodity Credit 
Corporation, and not service or acquisition contracts of the United 
States. 
Subtitle F—Conforming Amendments 
SEC. 1161. CONFORMING AMENDMENTS. 
(a) MISCELLANEOUS COMMODITY PROVISIONS.—The Agricultural 
Act of 1949 (7 U.S.C. 1441 et seq.) (as amended by sections 301, 1121, 
and 1122 of this Act) is further amended— 
7 use i445b-2, 
(1) by transferring sections 107C and 107E (7 U.S.C. 1445b-2 
1445J; i445b-4, 
and 1445b-4) to the end of title I and redesignating such sections 
^^^^^- 
as sections 114 and 115, respectively; and 
(2) by repealing section 107F (7 U.S.C. 1445b-5). 
(b) DESIGNATED NONBASIC AGRICULTURAL COMMODITIES.—Section 
201 of the Agricultural Act of 1949 (7 U.S.C. 1446) is amended— 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3521 
(1) in the first sentence— 
(A) by inserting "(a)" before "The Secretary"; and 
(B) by striking "as follows:" and inserting "in accordance 
with this title."; 
(2) in subsection (c), by striking "subsection (d)" and inserting 
"section 204"; and 
(3) by redesignating subsection (c) (as amended) as subsec-
tion (b). 
(c) SUGAR.—Section 902(a) of the Food Security Act of 1985 (7 
U.S.C. 1446 note) is amended by striking "section 201 of the Agricul-
tural Act of 1949 (7 U.S.C. 1446)" and mserting "section 206 of the 
Agricultural Act of 1949". 
(d) HONEY.—Section 405A(a) of the Agricultural Act of 1949 (7 
U.S.C. 1425a(a)) is amended— 
(1) by striking "section 201(b) of this Act" and inserting 
"section 207"; and 
(2) by striking "section 201(bX2XB)" and mserting "section 
207(bX2) 
:)". 
Subtitle G—Effective Date 
SEC. 1171. EFFECTIVE DATE. 
(a) IN GENERAL.—Except as otherwise specifically provided in title 
I through this title, such titles and the amendments made by such 
titles shall become effective beginning with the 1991 crop of an 
agricultural commodity. 
(b) PRIOR CROPS.—Except as otherwise specifically provided and 
notwithstanding any other provision of law, title I through this title, 
and the amendments made by such titles, shall not affect the 
authority of the Secretary of Agriculture to carry out a price 
support or production adjustment prc^am for any of the 1986 
through 1990 crops of an agricultural commodity established under 
a provision of law in effect immediately before the effective date 
prescribed by subsection (a). 
TITLE XII—STATE AND PRIVATE 
FORESTRY 
SEC. 1201. SHORT TITLE. 
This title may be cited as the "Forest Stewardship Act of 1990". 
Subtitle A—Cooperative Forestry Assistance 
Act of 1978 
7 u s e 1421 note. 
Forest 
Stewardship Act 
of 1990. 
Fish. 
Wildlife. 
Technical 
assistance. 
Public lands. 
16 u s e 2101 
note. 
SEC. 1211. REFERENCES. 
Whenever in this subtitle an amendment or repeal is expressed in 
terms of an amendment to, or repeal of, a section or other provision, 
the reference shall be considered to be made to a section or other 
provision of the Cooperative Forestry Assistance Act of 1978 (16 
U.S.C. 2101 et seq.). 
SEC. 1212. FINDINGS, PURPOSE, AND POLICY. 
Section 2 of the Act (16 U.S.C. 2101) is amended to read as follows: 
104 STAT. 3522 
PUBLIC LAW 101-624—NOV. 28, 1990 
"SEC. 2. FINDINGS, PURPOSE, AND POLICY. 
"(a) FINDINGS.—Congress finds that— 
"(1) most of the productive forest land of the United States is 
in private, State, and local governmental ownership, and the 
capacity of the United States to produce renewable forest re-
sources is significantly dependent on such non-Federal forest 
lands; 
"(2) adequate supplies of timber and other forest resources are 
essential to the United States, and adequate supplies are 
dependent on efficient methods for establishing, managing, and 
harvesting trees and processing, marketing, and using wood and 
wood products; 
"(3) nearly one-half of the wood supply of the United States 
comes from 
nonindustrial private timberlands and such 
percentage could rise with expanded assistance programs; 
"(4) managed forest lands provide habitats for fish and wild-
life, as well as aesthetics, outdoor recreation opportunities, and 
other forest resources; 
"(5) the soil, water, and air qusdity of the United States can be 
maintained and improved through good stewardship of pri-
vately held forest resources; 
"(6) insects and diseases affecting trees occur and sometimes 
create emergency conditions on all land, whether Federal or 
non-Federal, and efforts to prevent and control such insects and 
diseases often require coordinated action by both Federal and 
non-Federal land managers; 
"(7) fires in rural areas threaten human lives, property, for-
ests and other resources, and Federal-State cooperation in forest 
fire protection has proven effective and valuable; 
"(8) trees and forests are of great environmental and eco-
nomic value to urban areas; 
"(9) managed forests contribute to improving the quality, 
quantity, and timing of water )delds that are of broad benefit to 
society; 
"(10) over half the forest lands of the United States are in 
need of some tjrpe of conservation treatment; 
"(11) forest landowners are being faced with increased pres-
sure to convert their forest land to development and other 
purposes; 
"(12) increased population pressures and user demands are 
being placed on private, as well as public, landholders to provide 
a wide variety of products and services, including fish and 
wildlife 
habitat, 
aesthetic 
quality, 
and 
recreational 
opportunities; 
"(13) stewardship of privately held forest resources requires a 
long-term commitment that can be fostered through local. 
State, and Federal governmental actions; 
"(14) the Department of Agriculture, through the coordinated 
efforts of its agencies with forestry responsibilities, cooperating 
with other Federal agencies, State foresters, and State political 
subdivisions, has the expertise and experience to assist private 
landowners in achieving individual goals and public benefits 
regarding forestry; 
"(15) the products and services resulting from nonindustrial 
private forest land stewardship provide income and employ-
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3523 
ment that contribute to the economic health and diversity of 
rural communities; and 
"(16) sustainable agroforestry systems and tree planting in 
semiarid lands can improve environmental quality and main-
tain farm yields and income. 
'*Qa) PURPOSE.—It is the purpose of this Act to authorize the 
Secretary of Agriculture (hereaiter in this Act referred to as the 
'Secretary'), with respect to non-Federal forest lands of the United 
States, to assist in— 
"(1) the establishment of a coordinated and cooperative Fed-
eral, State, and local forest stewardship program for msmage-
ment of the non-Federal forest lands; 
"(2) the encouragement of the production of timber; 
"(3) the prevention and control of insects and diseases affect-
ing trees and forests; 
"(4) the prevention and control of rural fires; 
"(5) the efficient utilization of wood and wood residues, includ-
ing the recycling of wood fiber; 
"(6) the improvement and maintenance of fish and wildlife 
habitat; 
"(7) the planning and conduct of urban forestry programs; 
"(8) broadening existing forest management, fire protection, 
and insect and disease protection programs on non-Federal 
forest lands to meet the multiple use objectives of landowners in 
an environmentally sensitive manner; 
"(9) providing opportunities to private landowners to protect 
ecologically valuable and threatened non-Federal forest lands; 
and 
"(10) strengthening educational, technical, and 
financial 
assistance programs that provide assistance to owners of non-
Federal forest lands. 
"(c) PoucY.—It is the policy of Congress that it is in the national 
interest for the Secretary to work through and in cooperation with 
State foresters, or equivalent State officials, nongovernmental 
organizations, and the private sector in implementing Federal pro-
grams affecting non-Federal forest lands. 
"(d) CONSTRUCTION.—This Act shall be construed to complement 
the policies and direction under the Forest and Rangeland Renew-
able Resources Planning Act of 1974 (16 U.S.C. 1600 et seq.).". 
SEC. 1213. RURAL FORESTRY ASSISTANCE. 
Section 3 of the Act (16 U.S.C. 2102) is amended to read as follows: 
"SEC. 3. RURAL FORESTRY ASSISTANCE. 
"(a) ASSISTANCE TO FOREST LANDOWNERS AND OTHERS.—The Sec-
retary may provide financial, technical, educational, and related 
assistance to State foresters or equivalent State officials, and State 
extension directors, to enable such officials to provide technical 
information, advice, and related assistance to private forest land 
owners and managers, vendors, forest resource operators, forest 
resource professionals, public agencies, and individuals to enable 
such persons to carry out activities that are consistent with the 
purposes of this Act, including— 
"(1) protecting, maintaining, enhancing, restoring, and 
preserving forest lands and the multiple values and uses that 
depend on such lands; 
104 STAT. 3524 
PUBLIC LAW 101-624-NOV. 28, 1990 
"(2) identifying, protecting, maintaining, enhancing, and 
preserving wildlife and fish species, including threatened and 
endangered species, and their habitats; 
"(3) implementing forest management technologies; 
"(4) selecting, producing, and marketing alternative forest 
crops, products and services from forest lands; 
"(5) protecting forest land from damage caused by fire, in-
sects, disease, and damaging weather; 
"(6) msmaging the rural-land and urban-land interface to 
balance the use of forest resources in and adjacent to urban and 
community areas; 
"(7) identifying and managing recreational forest land re-
sources; 
"(8) identifying and protecting the aesthetic character of 
forest lands; 
"(9) protecting forest land from conversion to alternative uses; 
and 
"(10) the management of resources of forest lands, including— 
"(A) the harvesting, processing, and marketing of timber 
and other forest resources and the marketing and utiliza-
tion of wood and wood products; 
"(B) the conversion of wood to energy for domestic, indus-
trial, municipal, and other uses; 
"(C) the planning, management, and treatment of forest 
land, including site preparation, reforestation, thinning, 
prescribed burning, and other silvicultural activities de-
signed to increase the quantity and improve the quality of 
timber and other forest resources; 
"(D) ensuring that forest regeneration or reforestation 
occurs if needed to sustain long-term resource productivity; 
"(E) protecting and improving forest soil fertility and the 
quality, quantity, and timing of water 3delds; and 
"(F) encouraging the investment of a portion of the pro-
ceeds from the sale of timber or other forest resources in 
stewardship activities that preserve, protect, maintain, and 
enhance their forest land. 
"(b) STATE FORESTRY ASSISTANCE.—The Secretary is authorized to 
provide financial, technical, and related assistance to State for-
esters, or equivalent State officials, to— 
"(1) develop genetically improved tree seeds; 
"(2) develop and contract for the development of field arbore-
tums, greenhouses, and tree nurseries, in cooperation with a 
State, to facilitate production and distribution of tree seeds and 
seedlings in States where the Secretary determines that there is 
an inadequate capacity to carry out present and future reforest-
ation needs; 
"(3) procure, produce, and distribute tree seeds and trees for 
the purpose of establishing forests, windbreaks, shelterbelts, 
woodlots, and other plantings; 
"(4) plant tree seeds and seedlings on non-Federal forest lands 
that are suitable for the production of timber, recreation, and 
for other benefits associated with the growing of trees; 
"(5) plan, organize, and implement measures on non-Federal 
forest lemds, including thinning, prescribed burning, and other 
silvicultural activities designed to increase the quantity and 
improve the quality of trees and other vegetation, fish and 
wildlife habitat, and water 3delded therefrom; and 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3525 
"(6) protect or improve soil fertility on non-Federal forest 
lands and the quality, quantity, and timing of water jdelds 
therefrom. 
"(c) IMPLEMENTATION.—In implementing this section, the Sec-
retary shall cooperate with other Federal, State, and local natural 
resource management agencies, universities and the private sector. 
"(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 
be appropriated such sums as may be necessary to carry out this 
section.". 
SEC. 1214. FOREST INCENTIVES PROGRAM. 
Section 4 of the Act (16 U.S.C. 2103) is amended by adding at the 
end the following new subsection: 
"(k) The program developed by the Secretary under this section 
shall terminate on December 31,1995.". 
SEC. 1215. FOREST STEWARDSHIP PROGRAM. 
The Act (16 U.S.C. 2101 et seq.) is amended— 
(1) by redesignating sections 5 through 15 as sections 8 
through 18, respectively; and 
(2) by inserting after section 4 the following new section: 
"SEC. 5. FOREST STEWARDSHIP PROGRAM. 
"(a) EsTABUSHMENT.—The Secretary, in consultation with State 
foresters or equivalent State officials, shall establish a Forest 
Stewardship Program (hereafter referred to in this section as the 
'Program') to encourage the long-term stewardship of nonindustrial 
private forest lands by assisting owners of such lands to more 
actively manage their forest and related resources by utilizing 
existing State, Federal, and private sector resource management 
expertise and assistance programs. 
(b) GrOAL.—The goal of the Program shall be to enter at least 
25,000,000 acres of nonindustrial private forest lands in the Program 
by December 31,1995. 
"(c) DEFINITION.—For the purposes of this section, the term 
'nonindustrial private forest lands' means rural, as determined by 
the Secretary, lands with existing tree cover, or suitable for growing 
trees, and owned by any private individual, group, £issociation, 
corporation, Indian tribe, or other private legal entity. 
"(d) IMPLEMENTATION.—In canying out the Program the Sec-
retary, in consultation with State Foresters or equivalent State 
ofRcials, shall provide financial, technical, educational, and related 
assistance to State Foresters or equivalent State officials, including 
assistance to help such State Foresters or equivalent officials to 
provide financial assistance to other State and local natural re-
source entities, both public and private, and land-grant universities 
for the delivery of information and professional assistance to owners 
of nonindustrial private forest lands. Such information and assist-
ance shall be directed to help such owners understand and evaluate 
alternative actions they might take, including— 
"(1) managing and enhancing the productivity of timber, fish 
and wildlife habitat, water quality, wetlands, recreational re-
sources, and the aesthetic value of forest lands; 
"(2) investing in practices to protect, maintain, and enhance 
th!e resources identified in paragraph (1); 
"(3) ensuring that afforestation, reforestation, improvement 
of poorly stocked stands, timber stand improvement, practices 
Termination 
date. 
16 use 
2104-2112. 
16 u s e 2103a. 
104 STAT. 3526 
PUBLIC LAW 101-624—NOV. 28, 1990 
necessary to improve seedling growth and survival, and growth 
enhancement practices occur where needed to enhance and 
sustain the long-term productivity of timber and nontimber 
forest resources to help meet future public demand for all forest 
resources and provide the environmental benefits that result; 
and . 
"(4) protecting their forests from damage caused by fire, 
insects, disease, and damaging weather. 
"(e) EuGiBiLiTY.—All nonindustrial private forest lands that are 
not in management under Federal, State, or private sector financisd 
and technical assistance programs existing on the date of enactment 
of this section are eligible for gissistance under the Program. 
Nonindustrial private forest lands that are managed under such 
existing programs are eligible for assistance under the Program if 
forest management activities are expanded and enhanced and the 
landowner agrees to meet the requirements of this Act. 
"(f) DUTIES OF OWNERS.—To enter forest land into the Program, 
landowners shall— 
"(1) prepare and submit to the State forester or equivalent 
State official a forest stewardship plan that meets the require-
ments of this section and that— 
"(A) is prepared by a professional resource manager; 
"(B) identifies and describes actions to be taken by the 
landowner to protect soil, water, range, aesthetic quality, 
recreation, timber, water, and fish and wildlife resources on 
such land in a manner that is compatible with the objec-
tives of the landowner; and 
"(C) is approved by the State forester, or equivalent State 
official; and 
"(2) agree that all activities conducted on such land shall be 
consistent with the stewardship plan. 
"(g) STEWARDSHIP RECOGNITION.—The Secretary, in consultation 
with State foresters or equivalent State officials, is encouraged to 
develop an appropriate recognition program for landowners who 
practice stewardship management on their lands, with an appro-
priate, special recognition S3mibol and title. 
"(h) AUTHORIZATION OF APPROPRIATIONS.—There are hereby au-
thorized to be appropriated $25,000,000 for each of the fiscal years 
1991 through 1995, and such sums as may be necessary thereafter, 
to carry out this section.". 
SEC. 1216. STEWARDSHIP INCENTIVE PROGRAM. 
The Act (16 U.S.C. 2101 et seq.) is amended by inserting after 
section 5 (as added by section 1215 of this Act) the following new 
section: 
16 use 2103b. 
"SEC. 6. STEWARDSHIP INCENTIVE PROGRAM. 
"(a) EsTABUSHMENT.—The Secretary, in consultation with State 
foresters or equivalent State officials, shall establish a program 
within the Forest Service, to be known as the 'Stewardship Incen-
tive Program' (hereafter referred to in this section as the 'Program'), 
to meet the objectives and goals of section 5. 
"0)) ELIGIBILITY.— 
"(1) IN GENERAL.—Owners of nonindustrial private forest 
lands shall be eligible for cost-sharing gissistance under the 
Program if such owners— 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3527 
"(A) have developed an approved forest stewardship plan 
pursuant to section 5(f); 
"(B) agree to implement approved activities pursuant to 
paragraph (4) in accordance with the plan for a period of 
not less than 10 years unless the State forester or equiva-
lent State official approves a modification to such plan; and 
"(C) own not more than 1,000 acres of nonindustrial 
private forest land, except that the Secretary may approve 
the provision of cost-sharing assistance to landowners that 
own more than 1,000 acres of such land if the Secretary 
determines that significant public benefits will accrue from 
such approval. 
"(2) LIMITATION.— 
"(A) SECRETARY.—The Secretary shall not approve of the 
provision of cost-sharing assistance to any landowner 
owning in excess of 5,000 acres of nonindustrial private 
forest land. 
"(B) LANDOWNER.—A landowner shall not receive cost-
share assistance for management on acreage under this 
section if such landowner receives cost-share assistance on 
the same acreage under section 4, 
"(3) STATE PRIORITIES.—The Secretary in consultation with the 
State forester, or equivalent State official, other State natural 
resource management agencies, and the State (Coordinating 
(Committee established pursuant to section 19(b), may develop 
State priorities for cost sharing under this section that will 
promote unique forest management objectives in that State. 
"(4) APPROVED AcnvrnES.— 
"(A) DEVELOPMENT.—The Secretary, in consultation with 
the State (Coordinating (Committees established pursuant to 
section 19(b), shall develop a list of approved forest activi-
ties and practices that will be eligible for cost-share assist^ 
ance under the Program within each State. 
"(B) TYPE OF ACTIVITIES.—The Secretary, in developing a 
list of approved activities and practices under subparagraph 
(A), shall attempt to achieve landowner and public purposes 
including— 
"(i) the establishment, management, maintenance, 
and restoration of forests for shelterbelts, windbreaks, 
aesthetic quality, and other conservation purposes; 
"(ii) the sustainable growth and management of for-
ests for timber production; 
"(iii) the protection, restoration, and use of forest 
wetlands; 
"(iv) the enhanced management and maintenance of 
native vegetation on other lands vital to water quality; 
"(v) the growth and management of trees for energy 
conservation purposes; 
"(vi) the management £ind maintenance of fish and 
wildlife habitat; 
"(vii) the management of outdoor 
recreational 
opportunities; and 
(viii) other activities approved by the Secretary. 
'(c) REIMBURSEMENT OF EIJGIBLE ACTIVITIES.— 
"(1) IN GENERAL.—The Secretary shall share the cost of devel-
oping and canning out the forest stewardship plan under sec-
tion 5(f), and in implementing the approved activities that the 
104 STAT. 3528 
PUBLIC LAW 101-624—NOV. 28, 1990 
Secretary determines are appropriate and in the public interest, 
with a landowner who has entered in an agreement to place the 
forest land of such owner into the Program. 
"(2) RATE.—The Secretary, in consultation with the State 
forester, or equivalent State official, shall determine the appro-
priate reimbursement rate for cost-share pajmients under para-
graph (1) and the schedule for making such payments. 
"(3) MAXIMUM.—The Secretary shall not make cost-share pay-
ments under this subsection to a landowner in an amount in 
excess of 75 percent of the total cost to such landowner of 
developing the forest stewardship plan and implementing eli-
gible activities under the plan. The maximum payments to any 
one landowner shall be determined by the Secretary. 
"(d) RECAPTURE.— 
"(1) IN GENERAL.—The Secretary shall establish and imple-
ment a mechanism to recapture payments made to a landowner 
in the event that the landowner fails to implement any ap-
proved activity specified in the forest stewardship plan for 
which such owner received cost-share payments. 
"(2) ADDITIONAL PROVISION.—The provisions of paragraph (1) 
are in addition to any other provision available. 
"(e) DISTRIBUTION.—The Secretary shall distribute funds available 
for cost sharing under this section among the States only after 
assessing the public benefit incident to such distribution and after 
giving appropriate consideration to— 
"(1) the total acreage of nonindustrial private forest land in 
each State; 
"(2) the potential productivity of such land; 
"(3) the number of owners eligible for cost sharing in each 
State; 
"(4) the need for reforestation in each State; 
"(5) the opportunities to enhance nontimber resources on such 
forest lands; and 
"(6) the anticipated demand for timber and nontimber re-
sources in each State. 
"(f) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 
be appropriated $100,000,000 for each of the fiscal years 1991 
through 1995, and such sums as may be necessary thereafter, to 
carry out this section.". 
SEC. 1217. FOREST LEGACY PROGRAM. 
The Act (16 U.S.C. 2101 et seq.) is amended by inserting after 
section 6 (as added by section 1216 of this Act) the following new 
section: 
16 u s e 2103c. 
"SEC. 7. FOREST LEGACY PROGRAM. 
"(a) EsTABUSHMENT AND PURPOSE.—The Secretary shall establish 
a program, to be known as the Forest Legacy Program, in coopera-
tion with appropriate State, regional, and other units of government 
for the purposes of ascertaining and protecting environmentally 
important forest areas that are threatened by conversion to 
nonforest uses and, through the use of conservation easements and 
other mechanisms, for promoting forest land protection and other 
conservation opportunities. Such purposes shall also include the 
protection of important scenic, cultural, fish, wildlife, and rec-
reational resources, riparian areas, and other ecological values. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3529 
"(b) STATE AND REGIONAL FOREST LEGACY PROGRAMS.—The Sec-
retary shall exercise the authority under subsection (a) in conjunc-
tion with State or regional prc^ams that the Secretary deems 
consistent with this section. 
"(c) INTERESTS IN LAND.—In addition to the authorities granted 
under section 6 of the Act of March 1, 1911 (16 U.S.C. 515), and 
section 11(a) of the Department of Agriculture Organic Act of 1956 
(7 U.S.C. 428a(a)), the Secretary may acquire from willing land-
owners lands and interests therein, including conservation ease-
ments and rights of public access, for Forest Legacy Program pur-
poses. The Secretary shall not acquire conservation easements with 
title held in common ownership with any other entity. 
"(d) IMPLEMENTATION.— 
"(1) IN GENERAL.—Lands and interests therein acquired under 
subsection (c) may be held in perpetuity for program and ease-
ment administration purposes as the Secretary may provide. In 
administering lands and interests therein under the program, 
the Secretary shall identify the environmental values to be 
protected by entry of the lands into the program, management 
activities which are planned and the manner in which they may 
affect the values identified, and obtain from the landowner 
other information determined appropriate for administration 
and management purposes. 
"(2) INITIAL PROGRAMS.—Not later than 1 year after the date state listing. 
of enactment of this section, the Secretary shall establish a 
regional program in furtherance of the Northern Forest Lands 
Study in the States of New York, New Hampshire, Vermont, 
and Maine under PubUc Law 100-446. The Secretary shall 
establish additional programs in each of the Northeast, Mid-
west, South, and Western regions of the United States, and the 
Pacific Northwest (including the State of Washington), on the 
preparation of an assessment of the need for such programs. 
"(e) EuGiBiLTTY.—Within 1 year from the date of enactment of 
this section and in consultation with iState Forest Stewardship 
Advisory Committees established under section 15(b) and similar 
regional organizations, the Secretary shall establish eligibility cri-
teria for the designation of forest areas from which lands may be 
entered into the Forest Legacy Program and subsequently select 
such appropriate areas. To be eligible, such areas shall have signifi-
cant environmental values or shall be threatened by present or 
future conversion to nonforest uses. Of land proposed to be included 
in the Forest Legacy Program, the Secretary shall give priority to 
lands which can be effectively protected and managed, and which 
have important scenic or recreational values; riparian aregis; fish 
and wildlife values, including threatened and endangered species; or 
other ecological values. 
"(f) APPUCATION.—For areas included in the Forest Legacy Pro-
gram, an owner of lands or interests in lands who wishes to partici-
pate may prepare and submit an application at such time in such 
form and containing such information as the Secretary may pre-
scribe. The Secretary shall give reasonable advance notice for the 
submission of all applications to the State forester, equivalent State 
official, or other appropriate State or regional natural resource 
management agency. If applications exceed the ability of the Sec-
retary to fund them, priority shall be given to those forest areas 
having the greatest need for protection pursuant to the criteria 
described in subsection (d). 
104 STAT. 3530 
PUBLIC LAW 101-624—NOV. 28, 1990 
"(g) STATE CONSENT.—Where a State has not approved the acquisi-
tion of land under section 6 of the Act of March 1, 1911 (16 U.S.C. 
515), the Secretary shall not acquire lands or interests therein under 
authority granted by this section outside an area of that State 
designated as a part of a program established under subsection (h)-
"(h) FOREST MANAGEMENT ACTIVITIES.— 
"(1) IN GENERAL.—Conservation easements or deed reserva-
tions acquired or reserved pursuant to this section may allow 
^ ^ 
forest management activities, including timber management, on 
areas entered in the Forest Legacy Program insofar as the 
Secretary deems such activities consistent with the purposes of 
this section. 
"(2) ASSIGNMENT OF RESPONSIBILITIES.—For Forest Legacy Pro-
gram areas, the Secretary may delegate or assign management 
and enforcement responsibilities over federally owned lands and 
interests in lands only to another governmental entity. 
"(i) DUTIES OF OWNERS.—Under the terms of a conservation ease-
ment or other property interest acquired under subsection (b), the 
landowner shall be required to manage property in a manner that is 
consistent with the purposes for which the land was entered in the 
Forest Legacy Program and shall not convert such property to other 
uses. Hunting, fishing, hiking, and similar recreational uses shall 
not be considered inconsistent with the purposes of this program, 
"(j) COMPENSATION AND COST SHARING.— 
"(1) COMPENSATION.—The Secretary shall pay the fair market 
value of any property interest acquired under this section. 
Payments under this section shall be in accordance with Fed-
eral appraisal and acquisition standards and procedures. 
"(2) COST SHARING.—In accordance with terms and conditions 
that the Secretary shall prescribe, costs for the acquisition of 
lands or interests therein or project costs shall be shared among 
participating entities including regional organizations, State 
and other governmental units, landowners, corporations, or 
private organizations. Such costs may include, but are not 
limited to, those associated with planning, administration, prop-
erty acquisition, and property management. To the extent prac-
ticable, the Federal share of total program costs shall not 
exceed 75 percent, including any in-kind contribution. 
"(k) EASEMENTS.— 
"(1) RESERVED INTEREST DEEDS.—As used in this section, the 
term 'conservation easement' includes an easement utilizing a 
reserved interest deed where the grantee acquires all rights, 
title, and interests in a property, except those rights, title, and 
interests that may run with the land that are expressly re-
served by a grantor. 
"(2) 
PROHIBITIONS ON LIMITATIONS.—Notwithstanding 
any 
provision of State law, no conservation easement held by the 
United States or its successors or assigns under this section 
shall be limited in duration or scope or be defeasible by— 
"(A) the conservation easement being in gross or appur-
tenant; 
"(B) the management of the conservation easement 
having been delegated or assigned to a non-Federal entity; 
"(C) any requirement under State law for re-recordation 
or renewal of the easement; or 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3531 
"(D) any future disestablishment of a Forest Legacy Pro-
gram area or other Federal project for which the conserva-
tion easement was originally acquired. 
"(3) CONSTRUCTION.—Notwithstanding any provision of State 
law, conservation easements shall be construed to effect the 
Federal purposes for which they were acquired and, in inter-
preting their terms, there shall be no presumption favoring the 
conservation easement holder or fee owner. 
"(1) APPROPRIATION.—There are authorized to be appropriated 
such sums as may be necessary to carry out this section.". 
SEC. 1218. FOREST HEALTH PROTECTION. 
Section 8 of the Act (as redesignated by section 1215 of this Act) 
(16 U.S.C. 2104) is amended to read as follows: 
"SEC. 8. FOREST HEALTH PROTECTION. 
"(a) IN GENERAL.—The Secretary may protect trees and forests 
and wood products, stored wood, and wood in use directly on the 
National Forest System and, in cooperation with others, on other 
lands in the United States, from natural and man-made causes, to— 
"(1) enhance the growth and maintenance of trees and forests; 
"(2) promote the stability of forest-related industries and 
emplojonent associated therewith through the protection of 
forest resources; 
"(3) aid in forest fire prevention and control; 
"(4) conserve forest cover on watersheds, shelterbelts, and 
windbreaks; 
"(5) protect outdoor recreation opportunities and other forest 
resources; and 
"(6) extend timber supplies by protecting wood products, 
stored wood, and wood in use. 
"(b) ACTIVITIES.—Subject to subsections (c), (d), and (e) and to such 
other conditions the Secretary may prescribe, the Secretary may, 
directly on the National Forest System, in cooperation with other 
Federal departments on other Federal lands, and in cooperation 
with State foresters, or equivalent State officials, subdivisions of 
States, agencies, institutions, organizations, or individuals on non-
Federal lands— 
"(1) conduct surveys to detect and appraise insect infestations 
and disease conditions and man-made stresses affecting trees 
and establish a monitoring system throughout the forests of the 
United States to determine detrimental changes or improve-
ments that occur over time, and report annually concerning 
such surveys and monitoring; 
"(2) determine the biological, chemical, and mechanical meas-
ures necessary to prevent, retard, control, or suppress incipient, 
potential, threatening, or emergency insect infestations and 
disease conditions affecting trees; 
"(3) plan, organize, direct, and perform measures the Sec-
retary determines necessary to prevent, retard, control, or sup-
press incipient, potential, threatening, or emergency insect 
infestations and disease epidemics affecting trees; 
"(4) provide technical information, advice, and related assist-
ance on the various techniques available to maintain a healthy 
forest and in managing and coordinating the use of pesticides 
and other toxic substances applied to trees and other vegetation, 
and to wood products, stored wood, and wood in use; 
104 STAT. 3532 
PUBLIC LAW 101-624—NOV. 28, 1990 
"(5) develop applied technolc^y and conduct pilot tests of 
research results prior to the full-scale application of such tech-
nol(^y in affected forests; 
"(6) promote the implementation of appropriate silvicultural 
or management techniques that may improve or protect the 
health of the forests of the United States; and 
"(7) take any other actions the Secretary determines nec-
essary to accomplish the objectives and purposes of this section. 
"(c) CONSENT OP ENTITY.—Operations under this section to pre-
vent, retard, control, or suppress insects or diseases affecting forests 
and trees on land not controlled or administered by the Secretary 
shall not be conducted without the consent, cooperation, and partici-
pation of the entity having ownership of or jurisdiction over the 
afTected land. 
"(d) CONTRIBUTION BY ENTITY.—No money appropriated to imple-
ment this section shall be expended to prevent, retard, control, or 
suppress insects or diseases affecting trees on non-Federal land until 
the entity having ownership of or jurisdiction over the affected land 
contributes, or agrees to contribute, to the work to be done in the 
amount and in the manner determined appropriate by the 
Secretary. 
"(e) ALLOTMENTS TO OTHER AGENCIES.—The Secretary may, in the 
Secretary's discretion, and out of any money appropriated to imple-
ment tlus section, make allocations to Federal agencies having 
jurisdiction over lands held or owned by the United States in the 
amounts the Secretary determines necessary to prevent, retard, 
control, or suppress insect infestations and disease epidemics affect-
ing trees on those lands. 
(f) LIMITATION ON USE OF APPROPRIATIONS.— 
"(1) REMOVING DEAD TREES.—No amounts appropriated shall 
be used to— 
"(A) pay the cost of felling and removing dead or dying 
trees unless the Secretary determines that such actions are 
necessary to prevent the spread of a major insect infesta-
tion or disease epidemic severely affecting trees; or 
"(B) compensate for the value of any property injured, 
damaged, or destroyed by any cause. 
"(2) INSECTS AND DISEASES AFFECTING TREES.—The Secretary 
may procure materials and equipment necessary to prevent, 
retard, control, or suppress insects and diseases Effecting trees 
without regard to section 3709 of the Revised Statutes (41 U.S.C. 
5), under whatever procedures the Secretary may prescribe, if 
the Secretary determines that such action is necessary £md in 
the public interest. 
"(g) PARTNERSHIPS.—The Secretary, by contract or cooperative 
agreement, may provide financial assistance through the Forest 
Service to State foresters or equivalent State ofQcials, and private 
forestry and other oi^anizations, to monitor forest health and pro-
tect the forest lands of the United States. The Secretary shall 
require contribution by the non-Federal entity in the amount and in 
the manner determined appropriate. Such non-Federal share may 
be in the form of cash, services, or equipment, as determined 
appropriate by the Secretary. 
(h) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 
be appropriated annually such sums as may be necessary to carry 
out subsections (a) through (g). 
"(i) INTEGRATED PEST MANAGEMENT.— 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3533 
"(1) IN GENERAL.—Subject to the provisions of subsections (c) 
and (e), the Secretary shall, in cooperation with State foresters 
or equivalent State officials, subdivisions of States, or other 
entities on non-Federal lands (hereafter in this subsection re-
ferred to as the 'cooperator')— 
"(A) provide cost-share assistance to such cooperators 
who have established an acceptable integrated 
pest 
management strategy, as determined by the Secretary, that 
will prevent, retard, control, or suppress gypsy moth, south-
ern pine beetle, spruce budworm infestations, or other 
major insect infestations in an amount no less than 50 
percent nor greater than 75 percent of the cost of im-
plementing such strategy; and 
"(B) upon request, assist the cooperator in the develop-
ment of such integrated pest management strategy. 
"(2) AUTHORIZATION OF APPROPRIATIONS.—There are hereby 
authorized to be appropriated annually $10,000,000 to imple-
ment this subsection.". 
SEC. 1219. URBAN AND COMMUNITY FORESTRY ASSISTANCE. 
(a) AMENDMENT TO COOPERATIVE FORESTRY ASSISTANCE ACT.—Sec-
tion 9 of the Act (16 U.S.C. 2105) (as redesignated by section 1215) is 
amended to read as follows: 
"SEC. 9. URBAN AND COMMUNITY FORESTRY ASSISTANCE. 
Education. 
... . „ 
rwT, .r, 
/ - I T 
Grant programs. 
(a) FINDINGS.—The (Jongress finds that— 
"(1) the health of forests in urban areas and communities, 
including cities, their suburbs, and towns, in the United States 
is on the decline; 
"(2) forest lands, shade trees, and open spaces in urban areas 
and communities improve the quality of life for residents; 
"(3) forest lands and associated natural resources enhance the 
economic value of residential and commercial property in urban 
and community settings; 
"(4) urban trees are 15 times more effective than forest trees 
at reducing the buildup of carbon dioxide and aid in promoting 
energy conservation through mitigation of the heat island effect 
in urban areas; 
"(5) tree plantings and ground covers such as low growing 
dense perennial turfgrass sod in urban areas and communities 
can aid in reducing carbon dioxide emissions, mitigating the 
heat island effect, and reducing energy consumption, thus 
contributing to efforts to reduce global warming trends; 
"(6) efforts to encourage tree plantings and protect existing 
open spaces in urban areas and communities can contribute to 
the social well-being and promote a sense of community in these 
areas; and 
"(7) strengthened research, education, technical sissistance, 
and public information and participation in tree planting and 
maintenance programs for trees and complementary ground 
covers for urban and community forests are needed to provide 
for the protection and expansion of tree cover and open space in 
urban areas and communities. 
"(b) PURPOSES.—The purposes of this section are to— 
"(1) improve understanding of the benefits of preserving exist-
ing tree cover in urban areas and communities; 
104 STAT. 3534 
PUBLIC LAW 101-624—NOV. 28, 1990 
Inter-
governmental 
relations. 
Cooperative 
agreements. 
"(2) encourage owners of private residences and commercial 
properties to maintain trees and expand forest cover on their 
properties; 
"(3) provide education programs and technical assistance to 
State and local organizations (including community associations 
and schools) in maintaining forested lands and individual trees 
in urban and community settings and identifying appropriate 
tree species and sites for expanding forest cover; 
"(4) provide assistance through competitive matching grants 
awarded to local units of government, approved organizations 
that meet the requirements of section 501(cX3) of the Interngd 
Revenue Code of 1986, or other local community tree volunteer 
groups, for urban and community forestry projects; 
"(5) implement a tree planting program to complement urban 
and community tree maintenance and open space programs and 
to reduce carbon dioxide emissions, conserve energy, and im-
prove air quality in addition to providing other environmental 
benefits; 
"(6) promote the establishment of demonstration projects in 
selected urban and community settings to illustrate the benefits 
of maintaining and creating forest cover and trees; 
"(7) enhance the technical skills and understanding of sound 
tree maintenance and arboricultural practices including prac-
tices involving the cultivation of trees, shrubs and complemen-
tary ground covers, of individuals involved in the planning, 
development, and maintenance of urban and community forests 
and trees; and 
"(8) expand existing research and educational efforts intended 
to improve understanding of— 
"(A) tree growth and maintenance, tree physiology and 
morphology, species adaptations, and forest ecology, 
"(B) the value of integrating trees and ground covers, 
"(C) the economic, environmental, social, and psycho-
logical benefits of trees and forest cover in urban and 
community environments, and 
"(D) the role of urbEui trees in conserving energy and 
mitigating the urban heat island. 
"(c) GENERAL AUTHORITY.—The Secretary is authorized to provide 
financial, technical, and related assistance to State foresters or 
equivalent State officials for the purpose of encouraging States to 
provide information and technical assistance to units of local 
government and others that will encourage cooperative efforts to 
plsm urban forestry programs and to plant, protect, and maintain, 
and utilize wood from, trees in open spaces, greenbelts, roadside 
screens, parks, woodlands, curb areas, and residential developments 
in urban areas. In providing such assistance, the Secretary is au-
thorized to cooperate with interested members of the public, includ-
ing nonprofit private organizations. The Secretary is also authorized 
to cooperate directly with units of local government and others in 
implementing this section whenever the Secretary and the affected 
State forester or equivalent State official agree that direct coopera-
tion would better achieve the purposes of this section. 
"(d) PROGRAM OF EDUCATION AND TECHNICAL ASSISTANCE.—The 
Secretary, in cooperation with State foresters and State extension 
directors or equivalent State officials and interested members of the 
public, including nonprofit private organizations, shall implement a 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3535 
program of education and technical assistance for urban and 
community forest resources. The program shall be designed to— 
"(1) assist urban areas and communities in conducting inven-
tories of their forest resources, including inventories of the 
species, number, location, and health of trees in urban areas 
and communities, identifying opportunities for the establish-
ment of plantings for the purposes of conserving energy, and 
determining the status of related resources (including fish and 
wildlife habitat, water resources, and trails); 
"(2) assist State and local organizations (including community 
associations Eind schools) in organizing and conducting urban 
and community forestry projects and programs; 
"(3) improve education and technical support in— 
"(A) selecting tree species appropriate for planting in 
urban £ind community environments and for promotion of 
energy conservation; 
"(B) providing for proper tree planting, maintenance, and 
protection in urban areas and communities; 
"(C) protecting individual trees and preserving existing 
open spaces with or without tree cover; and 
"(D) identifying opportunities for expanding tree cover in 
urban areas and communities; 
"(4) assist in the development of State and local mangigement 
plans for trees and associated resources in urban areas and 
communities; and 
"(5) increase public understanding of the energy conservation, 
economic, social, environmental, and psychological values of 
trees and open space in urban and community environments 
and expand knowledge of the ecological relationships and bene-
fits of trees and related resources in these environments. 
"(e) PROCUREMENT OF PLANT MATERIALS.—The Secretary, in co-
operation with State foresters or equivalent State officials, shall 
assist in identif3dng sources of plant materials and may procure or 
otherwise obtain such plant materials from public or private sources 
and may make such plant materials available to urban areas and 
communities for the purpose of reforesting open spaces, replacing 
dead and dying urban trees, promoting energy conservation, and 
providing other environmental benefits through expanding tree 
cover in urban areas and communities. 
"(f) CHALLENGE COST-SHARE PROGRAM.— 
"(1) IN GENERAL.—The Secretary shall establish an urban and 
community forestry challenge cost-share program. Funds or 
other support shall be provided under such program to eligible 
communities and organizations, on a competitive basis, for 
urban and community forestry projects. The Secretary shall Decorations, 
annually make awards under the program in accordance with "pedals, awards. 
criteria developed in consultation with, and after consideration 
of recommendations received from, the National Urban and 
Community Forestry Advisory Council established 
under 
subsection (g). Each State forester or equivalent State official 
may make recommendations to the Secretary for awards under 
the program for project proposals in their State which meet 
such criteria. Awards shall be consistent with the cost-share 
requirements of this section. 
(2) COST-SHARING.—The Federal share of support for a 
project provided under this subsection may not exceed 50 per-
cent of the support for that project gind shall be provided on a 
104 STAT. 3536 
PUBLIC LAW 101-624—NOV. 28, 1990 
matching basis. The non-Federal share of such support may be 
in the form of cash, services, or in-kind contributions. 
"(g) FORESTRY ADVISORY COUNCIL.— 
"(1) EsTABUSHMENT AND PURPOSE.—The Secretary shall estab-
lish a National Urban and Community Forestry Advisory Coun-
cil (hereafter in this section referred to as the 'Council') for the 
purpose of— 
"(A) developing a national urban and community forestry 
action plan; 
"(B) evaluating the implementation of that plan; and 
"(C) developing criteria for, and submitting recommenda-
tions with respect to, the urban and community forestry 
challenge cost-share program under subsection (e). 
"(2) COMPOSITION AND OPERATION.— 
"(A) COMPOSITION.—The Council shall be composed of 15 
members appointed by the Secretary, as follows: 
"(i) 2 members representing national nonprofit for-
estry and conservation citizen organizations, 
"(ii) 8 members, 1 each representing State, county, 
and city and town governments, 
"(iii) 1 member representing the forest products, 
nursery, or related industries, 
"(iv) 1 member representing urban forestry, land-
scape, or design consultants, 
"(v) 2 members representing academic institutions 
with an expertise in urban and community forestry 
activities, 
"(vi) 1 member representing State forestry agencies 
or equivalent State agencies, 
"(vii) 1 member representing a professional renew-
able natural resource or arboricultural society, 
"(viii) 1 member from the Extension Service, 
"(ix) 1 member from the Forest Service, and 
"(x) 2 members who are not officers or employees of 
any governmental body, 1 of whom is a resident of a 
community with a population of less than 50,000 as of 
the most recent census and both of whom have exper-
tise and have been active in urban and community 
forestry. 
"(B) VACANCY.—A vacancy in the Council shall be filled 
in the manner in which the original appointment was 
made. 
"(C) CHAIRPERSON.—The Secretary shall select 1 member, 
from members appointed to the Council, who is not an 
officer or employee of the United States nor any State, 
county, city, or town government, who shall serve as the 
chairperson of the Council. 
"(D) TERMS.— 
"(i) IN GENERAL.—Except as provided in clauses (ii) 
and (iii) of this paragraph, members shall be appointed 
for terms of 3 years, and no member may serve more 
than 2 consecutive terms on the Council. 
"(ii) STAGGERED TERMS.—Of the members first ap-
pointed— 
"(I) 5, including the chairperson and 2 govern-
mental employees, shall be appointed for a term of 
3 years. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3537 
"(11) 5, including 2 governmental employees, 
shall be appointed for a term of 2 years, and 
"(in) 5, including 2 governmental employees, 
shall be appointed for a term of 1 year, as des-
ignated by the Secretary at the time of appoint-
ment, 
"(iii) CONTINUATION.—Any member appointed to fill 
a vacancy occurring before the expiration of the term 
of the member's predecessor shall be appointed only for 
the remainder of such term. A member may serve after 
the expiration of the member's term until the mem-
ber's successor has taken office. 
"(E) COMPENSATION.— 
"(i) IN GENERAL.—Except as provided in clause (ii), 
members of the (Douncil shall serve without pay, but 
may be reimbursed for reasonable costs incurred while 
in the actual performance of duties vested in the (Coun-
cil. 
"(ii) FEDERAL OFFICERS AND EMPLOYEES.—Members of 
the Council who are full-time officers or employees of 
the United States shall receive no additional pay, 
allowgmces, or benefits by reason of their service on the 
C!ouncil. 
"(iii) FINANCIAL AND ADMINISTRATIVE SUPPORT.—The 
Secretary shall provide financial and administrative 
support for the (Uouncil. 
"(3) URBAN AND COMMUNITY FORESTRY ACTION PLAN.—Within 
1 year after the date of enactment of this subsection and every 
10 years thereafter, the Council shall prepare a National Urban 
and Community Forestry Action Plan, llie plan shall include 
(but not be limited to) the following: 
"(A) An assessment of the current status of urban forest 
resources in the United States. 
"(B) A review of urban and community forestry programs 
and activities in the United States, including education and 
technical assistance activities conducted by the Department 
of Agriculture, and other Federal agencies, the State for-
estry organizations, private industry, private nonprofit 
organizations, community and civic organizations and in-
terested others. 
"(C) Recommendations for improving the status of the 
Nation's urban and community forest resources, including 
education and technical assistance and modifications re-
quired in existing programs and policies of relevsmt Federal 
agencies. 
"(D) A review of urban and community forestry research, 
including— 
"(i) a review of all ongoing research associated with 
urban and community forests, arboricultural practices, 
and the economic, social, and psychological benefits of 
trees and forest cover in urban and community 
environments being conducted by the Forest Service, 
other Federal agencies, and associated land grant col-
leges and universities; 
"(ii) recommendations for new and expanded re-
search efforts directed toward urban and community 
forestry concerns; and 
104 STAT. 3538 
PUBLIC LAW 101-624—NOV. 28, 1990 
"(iii) a summary of research priorities and £ui esti-
mate of the funds needed to implement such research, 
on an annual basis, for the next 10 years. 
"(E) Proposed criteria for evaluating proposed projects 
under the urban and community forestry challenge cost 
share program under subsection (e), with special emphasis 
given to projects that would demonstrate the benefits of 
improved forest management (including the maintenance 
and establishment of forest cover and trees) in urban areas 
and communities. 
"(F) An estimate of the resources needed to implement 
the National Urban and Community Forestry Action Plan 
for the succeeding 10 fiscal years. 
"(4) AMENDMENT OF THE PLAN.—The plan may be amended by 
a majority of the Council members. Such amendments shall be 
incorporated into the Council's annual review of the plan 
submitted to the Secretary pursuant to paragraph (5) of this 
subsection. 
"(5) REVIEW OF THE PLAN.—The Council shall submit the plan 
to the Secretary and the (Uommittee on Agriculture of the House 
of Representatives and the (Dommittee on Agriculture, Nutri-
tion, and Forestry of the Senate upon its completion. Beginning 
no later than one year after the plan is submitted and annually 
thereafter, the C!ouncil shall submit a review of the plan to the 
Secretary no later than December 31. The review shall consist 
of— 
"(A) the CJouncil's assessment of prior year accomplish-
ments in research, education, technical assistance, and re-
lated activities in urban and community forestry; 
"(B) the Council's recommendations for research, edu-
cation, technical assistance, and related activities in the 
succeeding year; and 
"(C) the (Douncil's recommendations for the urban and 
community forestry challenge cost share projects to be 
funded during the succeeding year. 
The review submitted to the Secretary shall be incorporated 
into the annual report required under section 3(d) of the Forest 
and Rangeland Renewable Resources Planning Act of 1974 (16 
U.S.C. 1601(d)). 
"(6) DETAIL OF PERSONNEL.—Upon request of the Council, the 
Secretary is authorized to detail, on a reimbursable basis, any of 
the personnel of the Department of Agriculture to the Council 
to assist the Council in carrying out its duties under this Act. 
"(h) DEFINITIONS.—For the purposes of this section— 
"(1) the term 'Council' means the National Urban and 
Community Forestry Advisory Council established 
under 
subsection (f); 
"(2) the term 'plan' means the National Urban and Commu-
nitv Forestry Action Plan developed under subsection (fK3); and 
' (3) the term 'urban and community area' includes cities, 
their suburbs, and towns, 
"(i) AUTHORIZATION OF APPROPRIATIONS.—There are hereby au-
thorized to be appropriated $30,000,000 for each of the fiscal years 
1991 through 1995, and such sums as may be necessary for each 
fiscal year thereafter, for the implementation of this section.", 
(b) AMENDMENT TO RENEWABLE RESOURCES EXTENSION ACT.— 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3539 
(1) PROMOTION OF PUBUC UNDERSTANDING.—Section 3(a) of the 
Renewable Resources Extension Act of 1978 (16 U.S.C. 1672(a)) 
is amended— 
(A) by striking "and" at the end of paragraph (7); 
(B) by striking the period at the end of paragraph (8) and 
inserting "; and"; and 
(C) by adding at the end the following new paragraph: 
"(9) in cooperation with State foresters or equivalent State 
officials, promote public understanding of the energy conserva-
tion, economic, social, environmental, and psychological values 
of trees and open space in urban and community area environ-
ments and expand knowledge of the ecological relationships and 
. benefits of trees and related resources in urban and community 
environments.". 
(2) URBAN AND COMMUNITY FORESTRY.—Section 5(a) of 
the 
Renewable Resources Extension Act of 1978 (16 U.S.C. 1674(a)) 
is amended in the final sentence by striking "for planting and 
management of trees and forests in urban areas," and inserting 
"for urban and community forestry activities,". 
SEC. 1220. FIREFIGHTING PREPAREDNESS AND MOBILIZATION ASSIST-
ANCE. 
(a) ASSISTANCE TO STATE FORESTERS.—Section 10(b) of the Act 
(16 
U.S.C. 2106(b)) (as redesignated by section 1215 of this Act) is 
amended— 
(1) by striking "and" at the end of paragraph (2); 
(2) by striking the period at the end of paragraph (3) and 
inserting "; and"; and 
(3) by adding at the end the following: 
"(4) provide financial, technical, and related assistance to 
State foresters or equivalent State officials, and through them 
to other agencies and individuals, including rural volunteer fire 
departments, to conduct preparedness and mobilization activi-
ties, including training, equipping, and otherwise enabling State 
and local firefighting agencies to respond to requests for fire 
suppression assistance.". 
(b) APPROPRIATIONS.—Section 10(e) of the Act (16 U.S.C. 2106(e)) is 
amended— 
(1) by striking "(e)" and inserting "(e)(1)"; and 
(2) in paragraph (1) (as so redesignated), by inserting "para-
graphs (1), (2), and (3) of" after "implement"; and 
(3) by adding at the end thereof the following: 
"(2)(A) There are hereby authorized to be appropriated annually 
$70,000,000 to carry out subsection (b)(4). Of the total amount appro-
priated to carry out subsection (b)(4)— 
"(i) one-half shall be available only for State foresters or 
equivalent State officials, and through them to other agencies 
and individuals, of which not less than $100,000 shall be made 
available to each State; and 
"(ii) one-half shall be available only for rural volunteer fire 
departments. 
"(B) The Federal share of the cost of any activity carried out with 
funds made available pursuant to this paragraph may not exceed 50 
percent of the cost of that activity. The non-Federal share for such 
activity may be in the form of cash, services, or in kind contribu-
tions.". 
104 STAT. 3540 
PUBLIC LAW 101-624—NOV. 28, 1990 
(c) DEFINITIONS.—Section 10 of the Act (16 U.S.C. 2106) (as 
amended by section 1215) is amended by adding at the end tiie 
following: 
"(g) As used in this section— 
"(1) the term 'rural volunteer fire department' means any 
organized, not for profit, fire protection organization that pro-
vides service primarily to a community or city with a population 
of 10,000 or less or to a rural area, as defined by the Secretary, 
whose firefighting personnel is 80 percent or more volunteer, 
and that is recognized as a fire department by the laws of the 
State; and 
"(2) the term 'mobilization' means any activity in which one 
fire fighting organization assists another that has requested 
assistance.". 
SEC. 1221. STATEMENT OF LIMITATION. 
Section 14 of the Act (16 U.S.C. 2110) (as redesignated by section 
1215 of this Act) is amended to read as follows: 
Real property. 
"SEC. 14. STATEMENT OF LIMITATION. 
"This Act shall not authorize the Federal Government to regulate 
the use of private land or to deprive owners of land of their rights to 
property or to income from the sale of property, unless such prop-
erty rights are voluntarily conveyed or limited by contract or other 
agreement. This Act does not diminish in any way the rights and 
responsibilities of the States and political subdivisions of States.". 
SEC. 1222. FEDERAL, STATE, AND LOCAL COORDINATION AND COOPERA-
TION. 
The Act (16 U.S.C. 2101 et seq.) (as amended by section 1215 of this 
Act) is further amended by adding at the end thereof the following 
new section: 
16 u s e 2113. 
"SEC. 19. FEDERAL, STATE, AND LOCAL COORDINATION AND COOPERA-
TION. 
"(a) DEPARTMENT OF AGRICULTURE COORDINATING COMMITTEE.— 
"(1) EsTABUSHMENT.—The Secretary shall establish 
an 
intradepartmental committee, to be known as the 'Forest Re-
source Coordinating Committee' (hereafter referred to in this 
section as the 'Coordinating C!ommittee'), to coordinate forestry 
activities. 
"(2) COMPOSITION.—The (Coordinating Clommittee shall be 
composed of representatives, appointed by the Secretary, from 
the Agricultural Research Service, Agricultural Stabilization 
and (Conservation Service, Extension Service, Forest Service, 
and Soil C!)onservation Service. 
"(3) CHAIRPERSON.—The Secretary shall designate the Chief of 
the Forest Service as chairperson. 
"(4) DUTIES.—The (Coordinating Committee shall— 
"(A) provide assistance in directing and coordinating ac-
tions of the Department of Agriculture that relate to edu-
cational, technical, and financisd assistance concerning 
forest land to private landowners; 
"(B) clarify individual agency responsibilities concerning 
forest land of each agency represented on the (Committee; 
and 
"(C) advise the Secretary of intradepartmental dif-
ferences regarding the implementation of this Act, and any 
PUBLIC LAW 101-624-NOV. 28, 1990 
104 STAT. 3541 
other Act related to the authority of the Secretary concern-
ing non-Federal forest lands. 
"(b) STATE COORDINATING COMMITTEES.— 
"(1) ESTABUSHMENT.— 
"(A) IN GENERAL.—The Secretary, in consultation with 
the State forester or equivalent State official of each State, 
shgdl establish a State Forest Stewardship Coordinating 
Committee (hereafter referred to in this section as the 
'State Coordinating Committee') for each such State. 
"(B) COMPOSITION.—The State Coordinating Committee 
shall be chaired and administered by the State forester, or 
equivalent State official, or the designee thereof, and shall 
be composed, to the extent practicable, of— 
"(i) representatives from the Forest Service, Soil Con-
servation Service, Agricultural Stabilization and Con-
servation Service, and Extension Service; 
"(ii) representatives, to be appointed by the State 
forester or equivalent State official, representative of— 
"(I) IOCEJ government; 
"(II) consulting foresters; 
"(III) environmental organizations; 
"(IV) forest products industry; 
"(V) forest lEuid owners; 
"(VI) land-trust organizations, if applicable in 
the State; 
"(VII) conservation organizations; and 
"(VIII) the State fish and wildlife agency; and 
"(iii) any other individuals determined appropriate 
by the Secretary. 
"(C) TERMS.—The members of the State Coordinating 
Committee appointed under subparagraph (BXii) shall serve 
3-year terms, with the initial members serving staggered 
terms as determined by the State forester or equivalent 
State official, and may be reappointed for consecutive 
terms. 
"(D) 
EXISTING 
COMMITTEES.—Existing State 
forestry 
committees may be used to complement, formulate, or re-
place the State Coordinating Committees to avoid duplica-
tion of efforts if such existing committees are made up of 
membership that is similar to that described in subpara-
graph (BXii), and if such existing committees include land-
owners and the general public in their memberships. 
"(2) DUTIES.—A State Coordinating Committee shall— 
"(A) consult with other Department of Agriculture and 
State committees that address State and private forestry 
issues; 
"(B) make recommendations to the Secretary concerning 
the assignment of priorities and the coordination of respon-
sibilities for the implementation of this Act by the various 
Federal and State forest management agencies that take 
into consideration the mandates of each such agency; 
"(C) make recommendations to the State forester or 
equivalent State official concerning the development of a 
Forest Stewardship Plan under paragraph (3); and 
"(D) make recommendations to the Secretary concerning 
those forest lands that should be given priority for inclusion 
104 STAT. 3542 
PUBLIC LAW 101-624-NOV. 28, 1990 
in the Forest Legacy Program established pursuant to sec-
tion 7. 
"(3) FOREST STEWARDSHIP PLAN.—The State forester or equiva-
lent State official of each State, in consultation with the State 
Coordinating Committee of such State, shall develop a Forest 
Stewardship Plan that shall— 
"(A) provide baseline data on the forest resources of the 
State; 
"(B) outline threats to the forest resources of the State; 
"(C) describe economic and environmental opportunities 
that are linked with the forest resources of the State; 
"(D) address management problems, opportunities, and 
objectives associated with intermingled Federgil, State, and 
private land ownership patterns within the State; and 
"(E) make planning recommendations for Federal, State, 
and local implementation of this Act. 
"(4) OTHER PLANS.—Other State forest management plans 
may be used as the basis for or in lieu of establishing a plan for 
the State under paragraph (3) if such plans fully conform to the 
objectives of this section. 
"(5) TERMINATION.—The State Coordinating Committees shall 
not terminate. 
"(6) RULE OF CONSTRUCTION.—Nothing in this section shall be 
construed to compel action by any State official.". 
SEC. 1223. ADMINISTRATION. 
The Act (16 U.S.C. 2101 et seq.) (as amended by section 1222 of this 
Act) is further amended by adding at the end thereof the following 
new section: 
16 use 2114. 
"SEC. 20. ADMINISTRATION. 
Regulations. 
"(a) IN GENERAL.—The Secretary shsill administer this Act in 
accordance with regulations that the Secretary shall develop. 
"Qo) GuiDEUNES.—The regulations promulgated under this Act 
shall include guidelines for the administration of this Act at the 
Federal and State levels and shall identify the measures and activi-
ties that are eligible for cost sharing under this Act. 
"(c) EXISTING MECHANISMS.—Existing mechanisms shall be used 
to the extent possible to make pajmiente and deliver services to the 
landowner under this Act. 
"(d) LAND GRANT UNIVERSITIES.—The Secretary, in consultation 
with State foresters or equivalent State officials, may provide assist-
ance directly to other State and local natural resource management 
agencies and land grant universities in implementing this Act in 
cases in which the State foresters or equivalent State officials are 
not able to make fund transfers to other State and local agencies.". 
SEC. 1224. CONFORMING AMENDMENTS. 
(1) in subsections (d) and (f) of section 4 (16 U.S.C. 2103 (d) and 
(f)), by striking "10(c)" each place that such occurs and inserting 
"13(c)"; 
(2) in section 12(f) (as redesignated by section 1215 of this Act) 
(16 U.S.C. 2108(f)) by striking '13" in subsection (f) and inserting 
"16"; and 
(3) in section 13(g) (as redesignated by section 1215 of this Act) 
(16 U.S.C. 2109(g)), by striking "13" and inserting "16". 
PUBLIC LAW 101-624-NOV. 28, 1990 
104 STAT. 3543 
Subtitle B—Research and Education 
CHAPTER 1—GENERAL RESEARCH PROGRAMS ^ 
SEC. 1231. MCINTIRE-STENNIS RESEARCH PROGRAM. 
16 USC 582a 
It is the sense of Congress to reaffirm the importance of Public 
Law 87-788 (16 U.S.C. 582a et seq.) commonly known as the 
Mclntire-Stennis Cooperative Forestry Act. 
SEC. 1232. COMPETITIVE 
FORESTRY, NATURAL 
RESOURCES, AND 16 USC 582a-8. 
ENVIRONMENTAL GRANTS PROGRAM. 
(a) EsTABUSHMENT.—The Secretary of Agriculture (hereafter re-
ferred to in this section as the "Secretary") shall establish a 
competitive forestry, natural resources, and environmental grant 
program to award grants for the conduct of research as described in 
subsection (c), 
(b) EuGiBLE ENTITIES.—To be eligible to receive a grant under 
subsection (a), an entity shall— 
(1) be a State agricultural experiment station, a college or 
university, a research institution or organization, a Federal 
agency, a private organization, or a corporation that has a 
demonstrable capacity to conduct forestry, natural resources, 
and environmental research as determined by the Secretary; 
and 
(2) prepare and submit to the Secretary, an application at 
such time, in such manner, and containing such information as 
the Secretary shall require, including the proposed use of the 
amounts that may be received under a grant. 
(c) USE.—In awarding the initial grants under subsection (a) the 
Secretary shall give priority to applicants who will use such grants 
for research concerning— 
(1) the biology of forest organisms, including physiology, ge-
netic mechanisms, and biotechnology; 
(2) ecosystem function and management, including forest eco-
t 
system research, biodiversity, forest productivity, pest manage-
ment, water resources, and alternative silvicultural systems; 
(3) wood as a raw materieil, including forest products and 
harvesting; 
(4) human forest interactions, including outdoor recreation, 
public policy formulation, economics, sociology, and administra-
tive behavior; 
(5) international trade, competition, and cooperation related 
to forest products; 
(6) alternative native crops, products, and services that can be 
produced from renewable natural resources associated with 
privately held forest lands; 
(7) viable economic production and marketing systems for 
alternative natural resource products and services; 
(8) economic and environmental benefits of various conserva-
tion practices on forest Isinds; 
(9) genetic tree improvement; and 
(10) market expgmsion. 
(d) FACILITIES AND EQUIPMENT.— 
(1) AUTHORITY.—Grants made under this section may be used 
to update research facilities and equipment available to facili-
104 STAT. 3544 
PUBLIC LAW 101-624—NOV. 28, 1990 
tate the conduct of state-of-the-art research in forestry, natural 
resources, and the environment. 
(2) PRIORITIES AND CRITERIA.—The Secretary, in consultation 
with the Cooperative Forestry Research Council appointed 
under section 5(b) of Public Law 87-788 (16 U.S.C. 582e(b)), may 
develop criteria and priorities for the awarding of grants for use 
under paragraph (1). 
(e) RECOMMENDATIONS.—The Secretary shall request the Cloopera-
tive Forestry Research Council referred to in subsection (dX2) to 
provide recommendations regarding grant priorities. 
(f) TERM.—The Secretary may make grants under this section for 
periods of not to exceed 5 years. 
(g) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 
be appropriated such sums as may be necessary to carry out this 
section. 
CHAPTER 2—SPECIALIZED RESEARCH 
SEC. 1241. RESEARCH AND UTILIZATION. 
(a) 
REFORESTATION RESEARCH; APPROPRIATIONS; PRIVATE FOR-
ESTRY.—Section 3 of the Forest and Rangeland Renewable Resources 
Research Act of 1978 (16 U.S.C. 1642) is amended— 
(1) in subsection (aXl) by inserting after "energy conservation, 
and other purposes" the following: ", including activities for 
encouraging improved reforestation of forest lands from which 
timber has been harvested"; 
(2) in subsection (b) by— 
(A) inserting "(1)" immediately prior to the words "To 
ensure the availability,"; and 
(B) adding at the end the following: 
"(2) In implementing this subsection, the Secretary is authorized 
to develop and implement improved methods of survey and analysis 
of forest inventory information, for which purposes there are hereby 
authorized to be appropriated annually $10,000,000."; and 
(3) by adding at the end the following: 
"(d) The Secretary is authorized to conduct, support, and co-
operate in studies and other activities the Secretary deems nec-
essary to— 
"(1) evaluate renewable resource management problems asso-
ciated with urban-forest interface; 
"(2) assess effects of changes in Federal revenue codes on 
private forest management and investment; and 
"(3) develop improved delivery systems for information and 
technical assistance provided to private landowners.". 
(b) RECYCUNG RESEARCH.—Section 9 of the Forest and Rangeland 
Renewable Resources Research Act of 1978 (16 U.S.C. 1641 et seq.) is 
amended to read as follows: 
16 use 1648. 
"SEC. 9. RECYCLING RESEARCH. 
"(a) FINDINGS.—Congress finds that— 
"(1) the United States is amassing vast amounts of solid 
wastes, which is presenting an increasing problem for munici-
palities in locating suitable disposal sites; 
"(2) a large proportion of these wastes consists of paper and 
other wood wastes; 
"(3) less than one-third of these paper and wood wastes are 
recycled; 
PUBLIC LAW 101-624-NOV. 28, 1990 
104 STAT. 3545 
"(4) additional recycling would result in reduced solid waste 
landfill disposal and would contribute to a reduced rate of 
removal of standing timber from forest lands; and 
"(5) additional research is needed to develop technological 
advances to address barriers to increased recycling of paper and 
wood wastes and utilization of products consisting of recycled 
materials. 
"(b) RECYCUNG RESEARCH PROGRAM.—The Secretary is authorized 
to conduct, support, and cooperate in an expanded wood fiber re-
cycling research program, including the acquisition of necessary 
equipment. The Secretary shall seek to ensure that the program 
includes the cooperation and support of private industry and that 
program goals include the application of such research to industry 
and consumer needs. 
"(c) AUTHORIZATION OF APPROPRIATIONS.—In addition to any other 
funds made available to implement section 3 of this Act, for the 5-
year period beginning on October 1,1990, there are authorized to be 
appropriated annually $10,000,000 to implement this section.". 
(c) MODERN TIMBER BRIDGE INITIATIVE.— 
(1) IN GENERAL.—The Secretary of Agriculture is authorized 
to continue the Modern Timber Bridge Initiative to provide 
Federal funds, on a cost share basis as determined by the 
Secretary, for the construction of demonstration bridges, 
modern bridge technology transfer projects, and conferences. 
(2) APPROPRIATIONS.—There are hereby authorized to be 
appropriated annually $5,000,000 to carry out this subsection. 
(d) FORESTRY RESEARCH NEEDS ASSESSMENTS.—Within 6 months Reports. 
after the date of enactment of this Act, the Secretary shall submit to 
the Committee on Agriculture of the House of Representatives and 
the Committee on Agriculture, Nutrition, £ind Forestry of the 
Senate a report that responds to the recommendations contained in 
the report of the National Research Council entitled "Forestry 
Research: A Mandate for Change". The report shall include— 
(1) an assessment of the capability of current forestry re-
search programs to address research areas specified in the 
report, including research on ecosystem functions and maneige-
ment; 
(2) an eveduation of alternatives to current organizational 
frameworks for providing guidance to forestry research pro-
grams and establishing research priorities, including the 
establishment of a National Forestry Research Council; and 
(3) recommendations for changes in current forestry research 
programs, including levels of research funding, that may be 
needed to address existing deficiencies. 
SEC. 1242. SOUTHERN FOREST REGENERATION PROGRAM. 
16 USC 1642 
(a) ESTABUSHMENT.—The Secretary of Agriculture shall make a ^°^' 
grant to a State for the establishment, within such State, of a center, 
to be known as the "Southern Forest Regeneration Center" (here-
after referred to in this section as the 
Center"), to study forest 
regeneration problems and forest productivity in the southern 
region of the United States. 
(b) DUTIES OF CENTER.—The Center shall study forest regeneration 
problems and forest productivity in the southern region of the 
United States, including— 
(1) nursery management concerns that will lead to improved 
seedling quality; 
104 STAT. 3546 
PUBLIC LAW 101-624—NOV. 28, 1990 
(2) forest management practices that account for environ-
mental stresses; and 
(3) the development of low-cost forest regeneration methods 
that provide options for wood products, species diversity, wild-
life habitat, and production of clean air and water. 
(c) EsTABUSHMENT OF OTHER PROGRAMS.—The Secretary of Ajgri-
culture may establish other programs in other regions of the United 
States, or a comprehensive National program, to carry out the 
purposes of this section as the Secretary determines appropriate. 
(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 
be appropriated such sums as may be necessary to carry out this 
section. 
Establishment. 
SEC. 1243. SEMIARID AGROFORESTRY RESEARCH CENTER. 
le^usf 
f642 
(^^ SEMIARID AGROFORESTRY RESEARCH, DEVELOPMENT, AND DEM-
note. 
ONSTRATiON CENTER.—The Secretary of Agriculture shall establish 
at the Forestry Sciences Laboratory of the United States Forest 
Service, in Lincoln, Nebraska, a Semiarid Agroforestry Research, 
Development, and Demonstration Center (hereafter referred to in 
this section as the "Center") and appoint a Director to manage and 
coordinate the program established at the Center under subsec-
tion (b). 
(b) PROGRAM.—The Secretary shall establish a program at the 
Center and seek the participation of Federal or State governmental 
entities, land-grant colleges or universities. State agricultural 
experiment stations. State and private foresters, the National Arbor 
Day Foundation, and other nonprofit foundations in such program 
to conduct or eissist research, investigations, studies, and surveys 
to— 
(1) develop sustainable agroforestry systems on semiarid lands 
that minimize topsoil loss and water contamination and sta-
bilize or enhance crop productivity; 
(2) adapt, demonstrate, document, and model the effectiveness 
of agroforestry systems under different farming systems and 
soil or climate conditions; 
(3) develop dual use agroforestry systems compatible with 
paragraphs (1) and (2) which would provide high-value forestry 
products for commercial sale from semiarid land; 
(4) develop and improve the drought and pest resistance 
characteristics 
of 
trees 
for 
conservation 
forestry 
and 
agroforestry applications in semiarid regions, including the 
introduction and breeding of trees suited for the Great Plains 
region of the United States; 
(5) develop technology transfer programs that increase farmer 
and public acceptance of sustainable agroforestry systems; 
(6) develop improved windbreak and shelterbelt technologies 
for drought preparedness, soil and water conservation, environ-
mental quality, £ind biological diversity on semiarid lands; 
(7) develop technical and economic concepts for sustainable 
agroforestry on semiarid lands, including the conduct of eco-
nomic analyses of the costs and benefits of agroforestry systems 
and the development of models to predict the economic benefits 
under soil or climate conditions; 
(8) provide international leadership in the development and 
exchange of agroforestry practices on semiarid lands worldwide; 
(9) support research on the effects of agroforestry systems on 
semiarid lands in mitigating nonpoint source water pollution; 
PUBLIC LAW 101-624-NOV. 28, 1990 
104 STAT. 3547 
(10) support research on the design, establishment, and 
maintenance of tree and shrub plantings to regulate the deposi-
tion of snow along roadways; and 
(11) conduct sociological, demographic, and economic studies 
as needed to develop strategies for increasing the use of forestry 
conservation and agroforestry practices. 
(c) INFORMATION COLLECTION AND DISSEMINATION.—The Secretary 
shall establish at the Center a program, to be known as the National 
Clearinghouse on Agroforestry Conservation and Promotion to— 
(1) collect, 
anal}rze, 
and 
disseminate 
information 
on 
agroforestry conservation technologies and practices; and 
(2) promote the use of such information by lemdowners and 
those organizations associated with forestry and tree promotion. 
(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 
be appropriated $5,000,000 annually to carry out this section. 
SEC. 1244. FOREST LAND PROTECTION. 
(a) NORTHERN FOREST LANDS.—In furtherance of Public Law 100- State listing. 
446, the Secretary of Agriculture (hereafter in this section referred 
to as the "Secretary") is authorized to continue support for the study 
of changing land ownership and management patterns in the north-
em forest lands of Maine, New Hampshire, Vermont, and New 
York. 
(b) NEW YORK-NEW JERSEY HIGHLANDS.— 
(1) IN GENERAL.—The Secretary is authorized to conduct a Pennsylvania, 
study of the region known as the New York-New Jersey High-
lands, located in the States of New York, New Jersey, and 
Pennsylvania, including the Sterling Forest in Orange County, 
New York. 
(2) SCOPE OF STUDY.—The study authorized under this subsec-
tion (hereafter in this subsection referred to as the "study") 
shall include an identification and assessment of^ 
(A) the physiographic boundaries of the region referred to 
in this subsection (hereafter in this subsection referred to as 
the "region"); 
(B) forest resources of the region, including (but not 
limited to) timber and other forest products, fish and wild-
life, lakes and rivers, and recreation; 
(C) historical land ownership patterns in the region and 
projected future land ownership, management, and use, 
including future recreational demands and deficits and the 
potential economic benefits of recreation to the region; 
(D) the likely impacts of changes in land and resource 
ownership, management, and use on traditional land use 
patterns in the region, including economic stability and 
emplo3anent, public use of private lands, natural integrity, 
and local culture and quality of life; and 
(E) alternative conservation strategies to protect the long-
term integrity and traditional uses of lands within the 
region. 
(3) ./&.TERNATIVE CONSERVATION STRATEGIES.—The alternative 
conservation strategies referred to in paragraph (2)(E) shall 
include a consideration of— 
(A) sustained flow of renewable resources in a combina-
tion that will meet the present and future needs of society; 
(B) public access for recreation; 
(C) protection of fish and wildlife habitat; 
104 STAT. 3548 
PUBLIC LAW 101-624—NOV. 28, 1990 
(D) preservation of biological diversity and critical natu-
ral areas; and 
(E) new local, State, or Federeil designations. 
(4) PuBuc PARTICIPATION.—In Conducting the study, the Sec-
retary shall provide an opportunity for public participation. 
(5) APPROPRIATIONS.—There are hereby authorized to be 
appropriated $250,000 to carry out this subsection. 
16 use 1601 
SEC. 1245. PRESIDENTIAL COMMISSION ON STATE AND PRIVATE FORESTS. 
President. 
(») EJsTABUSHMENT.—The President shall establish a Commission 
on State and Private Forests (hereafter in this section referred to as 
the "Commission") which shall assess the status of the State and 
private forest lands of the United States, the problems affecting 
these lands, and the potential contribution of these lands to the 
renewable natural resource needs of the United States associated 
with their improved management and protection. 
(b) COMPOSITION.—The Commission shall be composed of 25 mem-
bers to be appointed by the President, including Federal, State, and 
local officials, timber industry representatives, nonindustrial pri-
vate forest landowners, conservationists, and community leaders. 
No more than five members shall be appointed from any one State. 
Not fewer than 20 members shall be appointed by the President 
from nominations submitted by the following Members of Congress: 
(1) The chairman of the Committee on Agriculture of the 
House of Representatives. 
(2) The ranking minority member of the Committee on Agri-
culture of the House of Representatives. 
(3) The chairman of the Committee on Agriculture, Nutrition, 
and Forestry of the Senate. 
(4) The rginking minority member of the Committee on Agri-
culture, Nutrition, and Forestry of the Senate. 
(c) VACANCY.—A vacancy on the Commission shall be filled by 
appointment by the President in the manner provided in subsec-
tion (b). 
(d) CHAIRPERSON.—The Commission shall elect a chairperson from 
among the members of the Commission by a majority vote. 
(e) MEETINGS.—The Commission shedl meet at the call of the 
chairperson or a majority of the members of the Commission. 
(f) DUTIES.— 
(1) STUDY.—The Commission shall conduct a study that shall 
include— 
(A) an £issessment using existing inventories of the cur-
rent status of the State and private forest lands of the 
United States, including— 
(i) ownership stetus and past and future trends; 
(ii) the production of timber and nontimber resources 
from such lands; and 
(iii) landowner attitudes toward the protection and 
management of these lands; 
(B) a review of the problems affecting the State and 
private forest lands of the United Stetes, including— 
(i) resource losses to insects, disease, fire, and damag-
ing weather; 
(ii) inadequate reforestation; 
(iii) fragmentation and conversion of the forest land 
base; and 
(iv) meuiagement options; 
PUBLIC LAW 101-624—NOV. 28, 1990 
J04 STAT. 3549 
(C) constraints on, £ind opportunities for, providing 
multiresource outputs from forest lands; 
(D) administrative and legislative recommendations for 
addressing the problems and capitalizing on the potential of 
these lands for contributing to the renewable natural re-
source needs of the United States. 
(2) FINDINGS AND RECOMMENDATIONS.—On the basis of its 
study, the Commission shall make findings and develop rec-
ommendations for consideration by the President with respect 
to the future demands placed on State and private forests in 
meeting both commodity and noncommodity needs of the 
United States in anticipation of impending changes in the 
management of the national forests, especially with regard to 
timber harvest. This assessment should focus on the role of 
State and private forest lands and help to identify means of 
improving their contribution to meeting the timber and 
nontimber needs of the United States. 
(3) REPORT.—The Commission shall submit to the President, 
not later than December 1,1992, a report containing its findings 
and recommendations. The President shall submit the report to President. 
the Committee on Agriculture of the House of Representatives 
and the Committee on Agriculture, Nutrition, and Forestry of 
the Senate, and the report is authorized to be printed £is a 
House Document, 
(g) OPERATIONS IN GENERAL.— 
(1) AGENCY COOPERATION.—The heads of executive agencies, 
the General Accounting Office, the Office of Technology Assess-
ment, and the Congressional Budget Office shall cooperate with 
the Commission. 
(2) COMPENSATION.—Members of the Commission shall serve 
without compensation for work on the Commission. While away 
from their homes or regular places of business in the perform-
ance of duties of the Commission, members of the Commission 
shall be allowed travel expenses, including per diem in lieu of 
subsistence, as authorized by law for persons serving intermit-
tently in the Government service under section 5703 of title 5 of 
the United States Code. 
(3) DIRECTOR.—To the extent there are sufficient funds avail-
able to the Commission and subject to such rules as may be 
adopted by the Commission, the Commission, without regard to 
the provisions of title 5 of the United States Code governing 
appointments in the competitive service and without regard to 
the provisions of chapter 51 and subchapter III of chapter 53 of 
such title relating to the classification and General Schedule 
pay rates, may— 
(A) appoint and fix the compensation of a director; and 
(B) appoint and fix the compensation of such additional 
personnel as the Commission determines necessary to assist 
it to carry out its duties and functions. 
(4) STAFF AND SERVICES.—On the request of the Commission, 
the heads of executive agencies, the Comptroller General, and 
the Director of the Office Technology Assessment may furnish 
the Director of the Office of Technology Assessment may fur-
nish the Commission with such office, personnel or support 
services as the head of the agency, or office, and the chairperson 
of the Commission agree are necessary to assist the Commission 
to carry out its duties and functions. The Commission shall not 
104 STAT. 3550 
PUBLIC LAW 101-624—NOV. 28, 1990 
be required to pay, or reimburse, any agency for office, person-
nel or support services provided by this subsection. 
(5) EXEMPTIONS.— 
(A) FACA.—The Commission shall be exempt from sec-
tions 7(d), 10(e), 10(f), and 14 of the Federal Advisory 
Committee Act (5 U.S.C. App. 2,1 et seq.). 
(B) TITLE 5.—The Commission shall be exempt from the 
requirements of sections 4301 through 4305 of title 5 of the 
United States Code. 
(h) AUTHORIZATION OF APPROPRIATIONS AND SPENDING AUTHOR-
ITY.— 
(1) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 
to be appropriated such sums as are necessary to implement 
this section. 
(2) SPENDING AUTHORITY.—Any spending authority (as defined 
in section 401 of the Congressional Budget Act of 1974) provided 
in this title shall be effective for any fiscal year only to such 
extent or in such amounts as are provided in appropriation 
Acts. 
(i) TERMINATION.—The Presidential Commission on State and Pri-
vate Forests shall cease to exist 90 days following the submission of 
its report to the President. 
Washington. 
SEC. 1246. BLUE MOUNTAIN NATURAL RESOURCE INSTITUTE. 
Oregon. 
, s -m 
rrn 
^ 
/- 
, 
, 
(a) FINDINGS.—The Congress finds that— 
(1) the forests and rangelands in the States of Washington and 
Oregon east of the Cascade Crest do not jrield their productive 
capacity of multiple products, services and benefits, yet these 
forests and rangelands are expected to yield more; 
(2) these forests are among the most insect infested and 
disease infected in North America due to previous management 
practices, including the exclusion of fire and past management 
treatments, which have allowed these forests to become over-
stocked or to succeed to pest-susceptible forest types; 
(3) forage productivity of these forests and rangelands is 
reduced due to the spread of nonactive grasses, juniper, and 
noxious weeds; 
(4) the unprecedented build-up of fuel loads in these forests 
places them under continual threat of catastrophic fire; 
(5) losses due to insects, disease, and fire and reduced 
productivity of these forests and rangelands have far reaching 
environmental and economic consequences to local communities 
and a region entirely dependent on land-based resources; and 
(6) concerns over global climate change, water quality and 
quantity, eiir quality, fish and wildlife habitat, biodiversity, 
long-term forest and rangeland health and productivity, welfare 
of resource-dependent communities and regional economies, 
catastrophic fire, and scenic quality of Igmdscapes set the dimen-
sions of multifaceted resources issued which are straining the 
effectiveness of policy makers and land managers. 
(b) ESTABUSHMENT OF RESEARCH AND DEMONSTRATION PROGRAM.— 
The Secretary of Agriculture shall establish, plan, and initiate a 
research, development, and application program for the forests and 
rangelands of the States of Oregon and Washington located east of 
the Cascade Crest which shall address research, development, and 
application needs of the Blue Mountain area in Washington and 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3551 
Oregon. The program, through research, technology development 
and application, and public involvement, shall— 
(1) compile and develop basic biological and ecological 
information to improve forest and rangeland health and vigor; 
(2) focus research on joint management and production of 
timber, wildlife, grazing, fish, water quality, and recreation; 
(3) stimulate cooperative research between universities and 
Federal and State agencies; 
(4) identify and evaluate opportunities to enhance the long-
term economic and social benefits derived from the region's 
forest and rangeland resources in concert with county and 
regional economic strategies; 
(5) convert results of research into technology development 
products and apply new information in a timely manner; 
(6) develop technology to guide intensive multiresource 
management and policy decisions for sustaining long-term 
productivity and ecological values into the early decades of the 
21st century; 
(7) develop new technologies that will enable forest and range 
managers to maximize multiresource benefits and minimize the 
hazards of fire, insect, and disease outbreaks; 
(8) develop forest management practices for use by land man-
agers and landowners that are appropriate at the wildland-
urban interface and in concert with public values for these 
areas; 
(9) demonstrate the application of technology and resource 
knowledge on specific management areas; and 
(10) establish mutually beneficial relations with the public to 
inform them regarding research and technology development 
and new management directions and to obtain feedback. 
(c) PARTNERSHIP.—The Secretary of Agriculture shall establish 
and carry out the program under subsection Qoi) in consultation and 
cooperation with Federal, State, and local agencies, universities, and 
the private sector. In addition, the Secretary of Agriculture shall 
establish an advisory committee representing broad interests and 
perspectives to assist in the formulation of plans for implementing 
the program. 
SEC. 1247. INTERNATIONAL FOREST PRODUCTS TRADE INSTITUTE. 
Employment. 
Rural areas. 
(a) EsTABUSHMENT.—The Secretary of ^riculture may establish i6 USC 2112 
an International Forest Products Trade Institute (hereafter in this note. 
section referred to in this section as the "Institute"). 
(b) MISSION.—The mission of the Institute will be to increase the 
competitive position of the forest industries of the northeastern 
United States as major producers of international forest products in 
order to increase domestic employment and stimulate rural develop-
ment, and to provide a knowledgeable, objective analysis of global 
forest resource problems. 
(c) FUNCTIONS.—The Institute shall— 
(1) emphasize the application of existing knowledge to the 
manufacturing and international marketing of forest products 
as well as conduct new research related to the competitiveness 
of the northeastern forest products industry; 
(2) study and evaluate domestic and international forest, 
forest sector, agroforestry, development, economic, and trade 
policies; 
104 STAT. 3552 
PUBLIC LAW 101-624—NOV. 28, 1990 
(3) design, analyze and test technologically appropriate manu-
facturing, processing and marketing systems which are support-
ive of and consistent with forest policy and management strate-
gies formulated by the Institute and which enhance opportuni-
ties for markets in forest products; and 
(4) formulate and test management strategies for— 
(A) United States forests, and 
(B) manufacturing facilities that promote ecologicedly 
sustainable use, and long-term management, of inter-
national forests. 
(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 
be appropriated such sums as may be necessary to carry out the 
purposes of this section. 
CHAPTER 3—EDUCATION 
SEC. 1251. EXTENSION. 
(a) EXPANSION OF PROGRAMS.—The Renewable Resources Exten-
sion Act of 1978 (16 U.S.C. 1671 et seq.) is amended by inserting after 
section 5 the following new section: 
16 use 1674a. 
"SEC. 5A. EXPANDED PROGRAMS. 
"(a) IN GENERAL.—The Secretary, acting through the Extension 
Service and the State cooperative extension services, and in con-
sultation with State foresters or equivalent State officials, school 
boards, and universities, shall expand forestry and natural re-
sources education programs conducted under this Act for private 
forest owners and managers, public officials, youth, and the general 
public, and shall include guidelines for the transfer of technology. 
"(b) ACTIVITIES.— 
"(1) IN GENERAL.—In expanding the programs conducted 
under this Act, the Secretary shall ensure that activities are 
undertaken to promote policies and practices that enhance the 
health, vitality, productivity, economic value, and environ-
mental attributes of the forest lands of the United States. 
"(2) TYPES.—The activities referred to in paragraph (1) shall 
include— 
"(A) demonstrating and teaching landowners and forest 
managers the concepts of multiple-use and sustainable 
natural resource management; 
"(B) conducting comprehensive environmental education 
programs that assist citizens to participate in environ-
mentally positive activities such as tree planting, recycling, 
erosion prevention, and waste management; and 
"(C) educational programs and materials that will im-
prove the capacity of schools, local governments and re-
source agencies to deliver forestry and natural resources 
information to young people, environmentally concerned 
citizens, and action groups.". 
(b) PROGRAM AUTHORIZATIONS.—Section 3(a) of such Act (16 U.S.C. 
1672(a)) is amended— 
(1) in paragraph (7), by striking "and" at the end thereof; 
(2) in paragraph (8), by striking the period and inserting "; 
and"; and 
(3) by adding at the end thereof the following new paragraph: 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3553 
"(9) conduct a comprehensive natural resource and environ-
mental education program for landowners and managers, public 
officials, and the public, with particular emphasis on youth.", 
(c) EXTENSION PROGRAM PLAN.—Section 5(a) of such Act (16 U.S.C. 
1674(a)) is amended by inserting before the period at the end thereof 
the following: ", and give special attention to water quality protec-
tion and natural resource and environmental education for land-
owners and managers, public officials, and the public". 
SEC. 1252. FORESTRY STUDENT GRANT PROGRAM. 
The Forest and Rangeland Renewable Resources Research Act of 
1978 (16 U.S.C. 1641 et seq.) is amended by adding at the end thereof 
the following new section: 
"SEC. 10. FORESTRY STUDENT GRANT PROGRAM. 
16 USC 1649. 
"(a) EsTABUSHMENT.—The Secretary shall establish a program, to 
be known as the 'Forestry Student Grant Program' (hereafter re-
ferred to in this section as the 'Program'), to provide assistance to 
expand the professional education of forestry, natural resources, and 
environmental scientists. 
"(b) STUDENT GRANTS.—Under the Program the Secretary shall 
provide assistance for the establishment of a competitive grant 
fellowship program to assist graduate, and undergraduate minority 
and female, students attending institutions having programs in 
forestry and natural resources. 
"(c) EuGiBiLiTY.—The Secretary shall ensure that students con-
centrating in the following studies shall be eligible for assistance 
under subsection (b): 
"(1) Forestry. 
"(2) Biology and forest organisms. 
"(3) Ecosystem function and management. 
"(4) Human-forest interaction. 
"(5) International trade, competition, and cooperation. 
"(6) Wood as a raw material. 
"(7) Economics and policy. 
"(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 
be appropriated such sums as may be necessary to carry out this 
section.". 
Subtitle C—America the Beautiful 
^Si^Act o
f 
1990. 
SEC. 1261. SHORT TITLE. 
This subtitle may be cited as the "America the Beautiful Act of 
1990". 
SEC. 1262. FINDINGS. 
Congress finds that— 
(1) trees and forests provide beauty and diversity to both rural 
and urban landscapes; 
(2) trees and forests protect the United States's soil, water, 
and wetland resources by filtering runoff and preventing ero-
sion; 
(3) trees and forests provide food and cover for many species of 
wildlife; 
16 USC 2101 
note. 
104 STAT. 3554 
PUBLIC LAW 101-624—NOV. 28, 1990 
(4) trees and forests provide shade, block winds, and add 
moisture to the air, thereby mitigating the urban "heat island" 
effect and significantly reducing energy use; 
(5) trees and forests make important contributions to the 
environmental, social, and economic well-being of both rural 
and urban areas across the United States; and 
(6) stewardship of trees and forests could be significantly 
enhanced by encouraging, promoting, and supporting partner-
ships and community service projects involving individuals, 
youth groups, organizations, businesses and governments at all 
levels. 
SEC. 1263. PURPOSES. 
The purposes of this subtitle are to— 
(1) authorize the President to designate a private nonprofit 
foundation as eligible for a one-time grant from the Secretary of 
Agriculture, to be used for promoting public awareness and a 
spirit of volunteerism, soliciting private sector contributions, 
and overseeing the use of these contributions to encourage tree 
planting projects in communities and urban areas; 
(2) promote the principles of bsisic forest stewardship through 
the nationwide planting, improvement, and maintenance of 
trees in order to increase reforestation, enhance the environ-
mental and aesthetic qualities of the United States's rural and 
urban areas, and reduce global carbon dioxide levels; 
(3) authorize the Secretary of Agriculture to provide increased 
financial and technical assistance to State forestry agencies and 
others, and enter into cost-sharing agreements with individuals, 
for the purpose of encouraging owners of nonindustrial private 
lands to plant and maintain trees and improve forests in rural 
areas; and 
(4) authorize the Secretary of Agriculture to provide increased 
financial and technical assistance to State forestry agencies and 
others for the purpose of encouraging units of local government, 
civic groups, and individuals to plant and maintain trees and 
improve forests in communities and urban areas. 
SEC. 1264. TREE PLANTING FOUNDATION. 
(a) PURPOSE.—The purpose of this section is to authorize the 
President to designate a private nonprofit Foundation as eligible to 
receive a grant from the Department of Agriculture to be used— 
(1) to provide grants, including matching grants, to qualifying 
nonprofit organizations (including youth groups), municipali-
ties, counties, towns and townships for the implementation of 
programs to promote public awareness and a spirit of volunteer-
ism in support of tree planting, maintenance, management, 
protection, and cultivation projects in rural areas, communities 
and urban areas throughout the United States; 
(2) to solicit public and private sector contributions through 
the mobilization of individuals, businesses, governments, and 
community organizations with the goal of increasing the 
number of trees planted, maintained, managed, and protected 
in rural areas, communities and urban environments; 
(3) to accept and administer public and private gifts and make 
grants, including matching grants, to encourage local participa-
tion, for the planting, maintenance, management, protection, 
and cultivation of trees; and 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3555 
(4) to ensure that our descendants will be able to share their 
ancestors' pride when referring to their land as "America the 
Beautiful". 
(b) AUTHORITY.—The President is authorized to designate a pri- President. 
vate nonprofit organization Qiereafter in this section referred to as 
the "Foundation ) as eligible to receive funds pursuant to subsec-
tions (d) and (e) upon determining that such organization can, 
consistent with its charter, carry out the purpc^s stated in subsec-
tion (a), and that the officers of such organization have the experi-
ence and expertise necessary to direct the activities of the organiza-
tion. Nothing in this section shall be construed to make officers, 
employees, or members of the board of directors of the Foundation 
officers or employees of the United States. The Foundation shall be 
a private and nonprofit organization and not an agency or establish-
ment of the United States. 
(c) IMPLEMENTATION.—The Foundation shall carry out this section 
in accordance with the purposes stated in subsection (a). 
(d) FUNDING.—For fiscal year 1991, the Secretary is authorized to 
maike a grant of not to exceed $25,000,000 to the Foundation. 
(e) USE OF FUNDS.—Funds made available pursuant to subsection 
(d) shall be granted to the Foundation by the Secretary to enable the 
Foundation to carry out the purposes specified in subsection (a). 
(f) INTEREST.—Notwithstanding any other provision of law, the 
Foundation may hold funds made available pursuant to subsection 
(e) in interest-bearing accounts prior to the disbursement of the 
funds for purposes specified in subsection (a) and may retain to 
carry out such purposes any interest earned on the deposits. 
(g) LIMITATIONS ON USES OF FUNDS.— 
(1) IN GENERAL.—The Foundation may use funds provided by 
this section only for making grants to qualified organizations, 
municipalities, counties, towns and townships for the im-
plementation of projects and activities that are consistent with 
the purposes specified in subsection (a). 
(2) QUAUFIED ORGANIZATIONS.—For the purposes of this sec-
tion, qualified organizations shall consist of those organizations 
that meet the requirements of section 501(cX3) of the Internal 
Revenue Code of 1986 (26 U.S.C. 501(cX3)) and have dem-
onstrated a capability to implement the project or activity for 
which the Foundation funds will be used. 
(h) COMPENSATION FROM OUTSIDE SOURCES.—An officer or em-
ployee of the Foundation may not receive any salary or other 
compensation for services rendered to the Foundation from any 
source other than the Foundation. 
(i) STOCK AND DIVIDENDS.—The Foundation shall not issue any 
shares of stock or declare or pay any dividends. 
(j) LOBBYING.—The Foundation shall not engage in lobbying or 
propaganda for the purpose of infiuencing legislation and shall not 
participate or intervene in any political campaign on behalf of any 
candidate for public office. 
(k) SALARY; TRAVEL AND EXPENSES; CONFUCTS OF INTEREST.— 
(1) PERSONAL BENEFIT FROM FUNDS.—No part of the funds of 
the Foundation shall inure to the benefit of any board member, 
officer, or employee of the Foundation, except as salary or 
reasonable compensation for services or expenses. 
(2) TRAVEL AND EXPENSE REIMBURSEMENT.—Compensation for 
board members shall be limited to reimbursement for reason-
able costs of travel and expenses. 
104 STAT. 3556 
PUBLIC LAW 101-624—NOV. 28, 1990 
(3) C!oNFLiCTS OF INTEREST.—No director, officer, or employee 
of the Foundation shall participate, directly or indirectly, in the 
consideration or determination of any question before the 
Foundation affecting— 
(A) the financial interests of the director, officer, or em-
ployee; or 
(B) the interests of any corporation, partnership, entity, 
or organization in which such director, officer, or em-
ployee— 
(i) is an officer, director, or trustee; or 
(ii) has any direct or indirect fin£m,cial interest, 
(1) RECORDS; AUDITS.—The Foundation shall ensure that— 
(1) each recipient of assistance provided through the Founda-
tion under this section maintains, for at least 5 years after the 
receipt of the assistance, separate accounts with respect to the 
assistance and such records as may be reasonably necessary to 
disclose fully— 
(A) the amount and the disposition by the recipient of the 
proceeds of the assistance; 
(B) the total cost of the project or undertaking in connec-
tion with which the assistance is given or used; 
(C) the amount and nature of that portion of the cost of 
the project or undertaking supplied by other sources; and 
(D) such other records as will facilitate an effective audit; 
and 
(2) the Foundation and any duly authorized representative of 
the Foundation shall have access, for the purpose of audit and 
examination, to £iny books, documents, papers, and records of 
the recipient that are pertinent to assistance provided through 
the Foundation under this section. 
(m) AUDITS.— 
(1) INDEPENDENT AUDITS.—For the fiscal year in which the 
Foundation receives the grant awarded under subsection (e), 
and for the succeeding 5 fiscal years, the accounts of the 
Foundation shall be audited annually in accordance with gen-
erally accepted auditing standards by an independent certified 
public accountant or an independent licensed public accountant 
certified or licensed by a regulatory authority of a State or other 
political subdivision of the United States. The report of each 
such independent audit shall be included in the annual report 
required by subsection (n). 
(2) AGENCY AUDITS.—For the fiscal year in which the Founda-
tion receives the grant awarded under subsection (d), and for 
the succeeding 5 fiscal years, the financial transactions under-
taken pursuant to this section by the Foundation may be au-
dited by any agency designated by the President. 
(n) ANNUAL REPORTS.— 
(1) IN GENERAL.—Not later than 3 months after the conclusion 
of each fiscal year, the Foundation shall publish an annual 
report that includes a comprehensive and detailed report of the 
operations, activities, financial condition, and accomplishments 
of the Foundation under this Act during the fiscal year. 
(2) TERMINATION.—The obligation of the Foundation to pub-
lish annual reports pursuant to this subsection shall terminate 
after publication of the report incorporating the findings of the 
final audit in accordance with procedures required by subsec-
tion (1). 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3557 
(o) PROHIBITION ON COMMERCIAL HARVEST.—Trees planted pursu-
ant to a program receiving funds under this section may not be 
commercially harvested and sold for Christmas trees. 
(p) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be 
appropriated $25,000,000 to be granted by the Secretary of Agri-
culture to the Foundation. All funds appropriated under this section 
may remain available until expended. 
SEC. 1265. RURAL TREE PLANTING AND FOREST MANAGEMENT PRO-
GRAM. 
The Secretary of Agriculture is authorized to establish a rural 
tree planting and forest management program as a special compo-
nent of the forest stewardship program and the stewardship incen-
tive program established under sections 5 £ind 6 of the Cooperative 
Forestry Assistance Act of 1978 (16 U.S.C. 2102) (as amended by 
subtitle A). Such program shall terminate on December 31, 2001. 
SEC. 1266. COMMUNITY TREE PLANTING AND IMPROVEMENT PROGRAM. 
The Secretary of Agriculture is authorized to establish a commu-
nity tree planting and improvement program as a special compo-
nent of the urban eind community forestry assistance program 
established under section 9 of the Cooperative Forestry Assistance 
Act of 1978 (16 U.S.C. 2105) (as amended by section 1219). Such 
program shall terminate on December 31, 2001. 
Subtitle D—Miscellaneous Provisions 
SEC. 1271. EMERGENCY REFORESTATION ASSISTANCE. 
16 u s e 2106a. 
(a) IN GENERAL.—The Secretary of Agriculture is authorized to 
provide assistance under this section to eligible landowners who 
suffer destruction of 35 percent or more of a commercial tree stand 
due to damaging weather, related condition, or wildfire. 
OJ) FORM OF ASSISTANCE.—The assistance, if any, provided by the 
Secretary under this section shall consist of either— 
(1) reimbursement of up to 65 percent of the cost of re-
establishing such tree stand damaged by the damaging weather, 
related condition, or wildfire in excess of 35 percent mortality; 
or 
(2) at the discretion of the Secretary, provision of sufficient 
tree seedlings to reestablish such tree stand. 
(c) CONDITIONS.— 
(1) LIMITATION ON ASSISTANCE.—No person may receive an 
amount in excess of $25,000 in any fiscal year, or an equivalent 
value in tree seedlings, under this section. 
(2) INEUGIBIIJTY.—A person who has qualifying gross reve-
nues in excess of $2,000,000 annually, as determined by the 
Secretary, shsQl not be eligible to receive any disaster pajonent 
or other benefits under this section. 
(3) IMPLEMENTATION.—In implementing this section, the Sec- Regulations, 
retary shall issue regulations— 
(A) defining the term "person" for the purposes of this 
section that 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); 
104 STAT. 3558 
PUBLIC LAW 101-624—NOV. 28, 1990 
(B) prescribing such rules as the Secretary determines 
necessary to ensure a fair and reasonable application of the 
limitations established under this subsection; and 
(C) ensuring that no person receives duplicative pajrments 
or assistance under this section, the Cooperative Forestry 
Assistance Act of 1978, and the Agricultural Conservation 
Program established under section 16(b) of the Soil Con-
servation and Domestic Allotment Act (16 U.S.C. 590h, 5901, 
or 590p), or other Federal program. 
(d) DEFINITIONS.—As used in this section— 
(1) the term "damaging weather" includes drought, hail, 
excessive moisture, freeze, tornado, hurricane, excessive wind, 
or any combination thereof; 
(2) the term "eligible landowner" means a person who— 
(A) produces annual crops from trees for commercial 
purposes and owns 500 acres or less of such trees; 
(B) owns 1,000 acres or less of private forest land; or 
(C) owns more than 1,000 acres but less than 5,000 acres 
of private forest land if the Secretary, in the Secretary's 
discretion, determines the person eligible; 
(3) the term "qualifying gross revenues means— 
(A) if a majority of the person's annual income is received 
from farming, ranching, and forestry operations, the gross 
revenue from the person's farming, ranching, and forestry 
operations; and 
(B) if less than a majority of the person's annuEil income 
is received from farming, ranching, and forestry operations, 
the person's gross revenue from all sources; 
(4) the term "related condition" includes insect infestations, 
disease, or other deterioration of a tree stand that is accelerated 
or exacerbated by damaging weather; 
(5) the term "reestablish includes site preparation, reforest-
ation of a damaged stand, and timber stand improvement prac-
tices, including thinning, prescribed burning, and other prac-
tices approved by the Secretary for reforestation; 
(6) the term "Secretary" means the Secretary of Agriculture; 
and 
(7) the term "wildfire" means any forest or range fire. 
(e) RETROACTIVE ASSISTANCE.—The Secretary shall use funds pro-
vided under this section to reimburse landowners for approved 
reforestation practices that were implemented before the date of 
enactment of this section. The Secretary shall not make reimburse-
ments for reforestation practices that were implemented prior to 
September 1,1989. 
SEC. 1272. TALLADEGA NATIONAL FOREST EXPANSION. 
The boundaries of the Talladega National Forest are hereby 
modified to include all lands depicted on a map entitled "Talladega 
Forest Expansion" and dated October 1990, which shall be on file 
and available for public inspection in the Office of the Chief of the 
Forest Service, Washington, District of Columbia. Within the area 
delineated on such map, the Secretary shall utilize his authorities 
under the Act of March 1,1911 (Chapter 186, 36 Stat. 961), to acquire 
lands, waters, and interests therein. Lands so acquired shall be 
managed under such Act for National Forest purposes. It is the 
intent of the Congress that, to the extent practicable, private lands 
be acquired on a willing seller basis without undue delay. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3559 
TITLE XIII—FRUITS, VEGETABLES, AND 
MARKETING 
Subtitle A—Fruits and Vegetables 
SEC. 1301. FINDINGS. 
Congress finds that— 
(1) fruits, vegetables, and specialty crops are a vital and 
important source of nutrition for the general health and welfare 
of the people of the United States; and 
(2) fruits and vegetables are recommended as an essential 
part of a healthy, nutritious diet by numerous health officials 
and organizations including the Surgeon Greneral of the United 
States; the National Institutes of Health; the National Cancer 
Institute; the American Heart Association; the Committee on 
Diet, Nutrition and Cancer of the National Academy of Sci-
ences; the Department of Agriculture; and the Department of 
Health and Human Services. 
SEC. 1302. PURPOSES. 
The purposes of this subtitle are to— 
(1) improve the Nation's dietary £ind nutritional standards by 
promoting domestically produced wholesome and nutritious 
fruit and vegetable products; 
(2) increase the public awareness as to the difficulties domes-
tic producers experience regarding the production, harvesting, 
and marketing of these products; and 
(3) aid in the development of new technology and techniques 
that will assist domestic producers in meeting the challenges of 
increased demands for fruit and vegetable products in the 
future. 
SEC. 1303. DECLARATION. 
Congress declares that the domestic production of fruits and 
vegetables is an integral part of this Nation's farm policy. 
SEC. 1304. STUDY OP THE FRUIT AND VEGETABLE INDUSTRY. 
(a) STUDY.— 
(1) IN GENERAL.—The Secretary of Agriculture shall conduct a 
study to determine the state of the domestic fruit and vegetable 
industry. In conducting such study, the Secretary of Agriculture 
shall consult with such agencies or departments, as determined 
necessary by the Secretary of Agriculture, including the 
Environmental Protection Agency, the Department of Health 
and Human Services, the Department of Commerce, the Depart-
ment of Labor, and the Department of Education. 
(2) CONTENTS.—The study conducted under paragraph (1) 
shall include— 
(A) a review of the availability of an adequate labor 
supply for maintaining and harvesting of fruits and vegeta-
bles; 
. (B) a review of the availability of crop insurance or 
disaster assistance for fruit and vegetable producers; 
(C) a review of scientific and technological advances in 
the areas of genetics, biotechnology, integrated pest 
Nutrition. 
Domestic 
producers. 
7 u s e 499a note. 
7 u s e 499a note. 
7 u s e 499a note. 
7 u s e 499a note. 
104 STAT. 3560 
PUBLIC LAW 101-624—NOV. 28, 1990 
management, post harvest protection, and other scientific 
developments related to the production and marketing of 
fruits and vegetables; 
(D) an examination of the availability of safe and effec-
tive chemicals for use in the production of fruits and 
vegetables, and an evaluation of the value of national 
uniformity to both consumers and producers; 
(E) a review of the requirements and cost of labeling 
fruits and vegetables in the industry, and the benefits that 
would result from the labeling of such products; and 
(F) a review of Federal educational programs that teach 
the importance of fruits and vegetables to a proper diet. 
(b) REPORT.—Not later than 18 months after the date of enactment 
of this title, the Secretary of Agriculture shall prepare and submit, 
to the Committee on Agriculture of the House of Representatives 
and the Committee on Agriculture, Nutrition, and Forestry of the 
Senate, a report containing the results of the study described in 
subsection (a). Such report shall include— 
(1) the recommendations of the Secretary concerning the 
manner in which producers of domestic fruit and vegetable 
commodities that are not receiving assistance under the pro-
grams that provide market enhancement assistance (such as the 
export enhancement program under subtitle B of title XI of the 
Food Security Act of 1985 (7 U.S.C. 1736p et seq.) to producers of 
domestic fruit and vegetable commodities, could participate in 
such programs; and 
(2) the recommendations to the Secretary concerning the 
establishment of additional programs of the type described in 
paragraph (1) to assist producers of domestic fruit and vegetable 
commodities in increasing their production and in expanding 
domestic and foreign markets for the products of such produc-
ers. 
7 use 499a note. 
SEC. 1305. COUNTRY OF ORIGIN LABELING PROGRAMS. 
(a) GROWN IN THE U.S. PROGRAM.—The Secretary of Agriculture 
(hereafter referred to in this section as the "Secretary") shall imple-
ment a program defining the conditions under which non-perishable 
agricultural products may be designated as "grown in the U.S.". 
(b) PILOT PROGRAM.— 
(1) IN GENERAL.—The Secretary shall implement a 2-year pilot 
program during which time perishable Eigricultural products 
(fresh fruits and vegetables) are labeled or marked as to their 
country of origin. This program shall be conducted nationwide. 
After the 2-year period, the Secretary shall conduct a study to 
determine the results of the progrgim. The Secretary shall 
submit to the Congress the results of the study within 18 
months from the date of completion of the program. 
(2) DETAILS OP THE PILOT PROGRAM.— 
(A) DESIGNATION OF COUNTRY OF ORIGIN.—The program 
shall require that the country of origin of perishable agri-
cultural products be indicated on any such products or on 
the package, display, holding unit, or bin by means of a 
label, stamp, mark, placard, or other clear and visible 
indication at the point of sale by any commission merchant, 
dealer, broker, or grocer. A sign near the products shall be 
an acceptable indication of the country of origin. 
(B) APPUCATION OF PROGRAM.— 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3561 
(i) IMPORTED AND DOMESTIC PRODUCTS.—The program 
shsdl apply to imported and domestic perishable agri-
cultural products (including fresh fruits and vegeta-
bles). 
(ii) IMPORTED PERISHABLE AGRICULTURAL PRODUCTS.— 
The labeling program shall apply to imported perish-
able agricultural products that enter the United States 
marked as to the country of origin and that are in 
compliance with section 304(a) of the Tariff Act of 1930. 
(C) EXEMPTIONS.—The Secretary may provide for exemp-
tions for products that are exempted, under section 
304(aX3XJ) of the Tariff Act of 1930, from the country of 
origin marking requirements of that Act. 
(c) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 
be appropriated such sums as are necessary to carry out this section. 
SEC. 1306. ENFORCEMENT OF HANDLER ASSESSMENTS. 
Section 8c(14) of the Agricultural Marketing Agreement Act of 
1937 (7 U.S.C. 608c(14)) is amended— 
(1) in subparagraph (A) by— 
(A) striking "(other than a provision calling for payment 
of a pro rata share of expenses)"; and 
(B) striking ": Provided, That i f and inserting ". If; and 
(2) in subparagraph (B) by striking "(other than a provision 
calling for pajonent of a pro rata share of expenses)". 
SEC. 1307. KIWIFRUIT AND OTHER FRUIT. 
The first sentence of section 8e(a) of the Agricultural Adjustment 
Act (7 U.S.C. 608e-l), reenacted with amendments by the Agricul-
tural Marketing Agreement Act of 1937, is amended by striking "or 
eggplants" and inserting "eggplants, kiwifruit, nectarines, plums, 
pistachios, or apples". 
SEC. 1308. MARKETING ORDERS. 
Section 8e of the Agricultural Adjustment Act (7 U.S.C. 608e-l), 
reenacted with amendments by the Agricultural Marketing Agree-
ment Act of 1937, is amended by— 
(1) striking "(a) Notwithstanding any other provision of law," 
in the first sentence, and inserting in its place "(a) Subject to 
the provisions of subsections (c) and (d) and notwithstanding any 
other provision of law,"; 
(2) adding at the end thereof the following new subsections: 
"(c) Prior to any import prohibition or regulation under this Imports. 
section being made effective with respect to any commodity— 
"(1) the Secretary of Agriculture shall notify the United 
States Trade Representative of such import prohibition or regu-
lation; and 
"(2) the United States Trade Representative shall advise the 
Secretary of Agriculture, within 60 days of the notification 
under paragraph (1), to ensure that the application of the grade, 
size, quality, and maturity provisions of the relevant marketing 
order, or comparable restrictions, to imports is not inconsistent 
with United States international obligations under any trade 
agreement, including the General Agreement on Tariffs and 
Trade. 
"(d) The Secretary may proceed with the proposed prohibition or 
regulation if the Secretary receives the advice and concurrence of 
104 STAT. 3562 
PUBLIC LAW 101-624—NOV. 28, 1990 
the United States Trade Representative within 60 days of the 
notification under subsection (cXl)-"-
7 use 499b-l. 
SEC. 1309. PRODUCTS PRODUCED IN DISTINCT GEOGRAPHIC AREAS. 
(a) IN GENERAL.—In the case of a perishable agricultural commod-
ity (as defined under the Perishable Agricultural Commodity Act (7 
U.S.C. 499a(4))— 
(1) subject to a Federal marketing order under the Agricul-
tural Marketing Agreement Act of 1937 (7 U.S.C. 601 et seq.); 
(2) traditionally identified as being produced in a distinct 
geographic area, State, or region; and 
(3) the unique identity, based on such distinct geographic 
area, of which has been promoted with funds collected through 
producer contributions pursuant to such marketing order, 
no person may use the unique name or geographical designation of 
such commodity to promote the sale of a similar commodity pro-
duced outside such area, State, or region. 
(b) PENALTIES.—A violation of this section shall be considered a 
violation of paragraphs (4) and (5) of section 2 of the Perishable 
Agricultural Commodities Act (7 U.S.C. 499b (4) and (5)). 
(c) REIMBURSEMENT.—A person bringing a complaint under this 
section shall reimburse the Secretary of Agriculture for any and all 
costs associated with the enforcement of this section. 
(d) PROHIBITION.—The Secretary of Agriculture shall not increase 
any fees charged under the Perishable Agricultural Commodities 
Act (7 U.S.C. 499 et seq.) to offset costs associated with the operation 
of this section. 
(e) REGULATIONS.—The Secretary shall promulgate regulations to 
carry out this section. 
Subtitle B—National Laboratory Accreditation 
7USC138. 
SEC. 1321. DEFINITIONS. 
As used in this subtitle: 
(1) AGRICULTURAL PRODUCT.—The term "agricultural product" 
means any fresh fruit or vegetable or £my commodity or product 
derived from livestock or fowl, that is marketed in the United 
States for human consumption. 
(2) CERTIFICATE.—The term "certificate" means a certificate of 
accreditation issued under this subtitle. 
(3) LABORATORY.—The term "laboratory" means £my facility 
or vehicle that is owned by an individual or a public or private 
entity and is equipped and operated for the purpose of carrjdng 
out pesticide residue analysis on agricultural products for 
commercial purposes. 
(4) PESTICIDE.—The term "pesticide" means any substance 
that Eilone, in chemical combination, or in any formulation with 
one or more substances, is defined as a pesticide in section 2(u) 
of the Federal Insecticide, Fungicide, and Rodenticide Act (7 
U.S.C. 136(u)). 
(5) SECRETARY.—The term "Secretary" means the Secretary of 
Agriculture. 
7 use 138a. 
SEC. 1322. NATIONAL LABORATORY ACCREDITATION PROGRAM. 
(a) EsTABUSHMENT OF PROGRAM.—The Secretary shall administer 
a National Laboratory Accreditation Program under which labora-
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3563 
Inter-
governmental 
relations. 
Nonprofit 
organizations. 
Records. 
tories that request accreditation and conduct residue testing of 
agricultural products, or that make claims to the public or buyers of 
agricultural products concerning chemical residue levels on agricul-
tural products, shall be determined to meet certain minimum qual-
ity and reliability standards. 
(b) STANDARDS.—The Secretary of Health and Human Services, Regulations 
after consultation with the Secretary and the Administrator of the 
Environmental Protection Agency, shall establish, through regula-
tions, standards for the National Laboratory Accreditation program 
that shall include— 
(1) standards applicable to laboratories; 
(2) qualifications for directors and other personnel; and 
(3) standards and procedures for quality assurance programs. 
(c) ACCREDITING BODIES.—The Secretary of Health and Human 
Services shall approve State agencies or private, nonprofit entities 
as accrediting bodies to act on behalf of such Secretary in im-
plementing the certification and quality assurance programs in 
accordance with the requirements of this section. In making such 
approvals the Secretary of Health and Human Services shall— 
(1) oversee and review the performance of any accrediting 
body acting on behalf of the Secretary to ensure that such 
accrediting body is in compliance with the requirements of the 
certification program under this section; and 
(2) have the right to obtain from an accrediting body acting on 
behalf of the Secretary and from any laboratory that may be 
certified by such a body all records and materials that may be 
necessary for the oversight and review required by paragraph 
(1). 
(d) REQUIREMENTS.—To be accredited under this subtitle, a labora-
tory shall— 
(1) prepare and submit an application for accreditation to the 
Secretary; and 
(2) comply with such terms and conditions as are determined 
necessary by the Secretary and the Secretary of Hesdth and 
Human Services. 
(e) EXCEPTIONS.—This subtitle shall not apply to— 
(1) a laboratory operated by a government agency; 
(2) a laboratory operated by a corporation that only performs 
analysis of residues on agricultural products for such corpora-
tion or £iny wholly owned subsidiary of such corporation and 
does not make claims to the public or buyers based on such 
analysis; 
(3) a laboratory operated by a partnership that only performs 
analysis of residues on agricultural products for the partners of 
such partnership and does not make claims to the public or 
buyers based on such analysis; or 
(4) a laboratory not operated for commercial purposes that 
performs pesticide chemical residue analysis on agricultural 
products for research or quality control for the internal use of a 
person who is initiating the analysis. 
SEC. 1323. ACCREDITATION. 
7 USC 138b. 
(a) IN GENERAL.—The Secretary shall issue certificates of accredi-
tation to laboratories that meet the requirements of this subtitle, as 
determined by the Secretary. 
(b) REQUIREMENTS FOR ACCREDITATION.—To receive accreditation 
under this subtitle, a laboratory shall prepare and submit an ap-
104 STAT. 3564 
PUBLIC LAW 101-624—NOV. 28, 1990 
plication for accreditation to the Secretary and shall complete such 
required tests, and meet such standards as established under section 
1322. 
(c) FAILURE TO MEET ACCREDITATION STANDARDS.—The Secretary 
shall deny an application for accreditation or shall revoke any 
existing accreditation with respect to any laboratory that fails to 
meet the requirements for accreditation under this subtitle. 
(d) LIMITED ACCREDITATION.—The Secretary may issue certificates 
of accreditation to laboratories that are limited to specific fields of 
testing. 
7 use 138c. 
SEC. 1324. SAMPLES. 
(a) PERFORMANCE EVALUATION SAMPLES.— 
(1) PROVIDED BY SECRETARY.—The Secretary shall ensure that 
performance evaluation samples are provided to any laboratory 
that has applied for accreditation under this subtitle. 
(2) ANALYSIS BY LABORATORY.—A laboratory described in para-
graph (1) shall analyze such performance evaluation samples 
and submit the results of such analysis to the Secretary, as 
provided for in section 1322. 
(3) TESTING METHODS.—Samples shall be tested by the 
laboratory according to methods specifically approved for such 
purpose by alternate methods of demonstrated adequacy or 
equivalence, as determined in regulations established under 
this subtitle. 
0)) RESULTS OF TESTING.— 
(1) SUBMISSION OF RESULTS.—The laboratory shall submit the 
results of the tests conducted under subsection (a) to the Sec-
retary on forms provided by the Secretary, on or before the date 
determined by the Secretary. 
(2) EVALUATION OF TESTS.—The Secretary shall evaluate the 
results of such tests achieved by the laboratory and shsill deter-
mine whether such laboratory is capable of undertaking an 
accurate analysis of chemical residues in agricultural products. 
(c) REVIEW OF ACCREDITATION.—The Secretary shall ensure that 
performance evaluation samples for analysis are provided to labora-
tories accredited under this subtitle not less than two times a year. 
7 u s e 138d. 
SEC. 1325. APPLICATION. 
(a) CONTENTS OF APPUCATION.—An application for accreditation 
under this subtitle shall be prepared and submitted to the Secretary 
and shall include— 
(1) the name and address of the laboratory; 
(2) the name and address of the owners and managers of such 
laboratory; 
(3) a statement concerning the type of analysis the laboratory 
intends to conduct; 
(4) a brief history of the laboratory and its previous oper-
ations; and 
(5) such other information as may be required by the Sec-
retary. 
Ot)) RESTRICTIONS ON SUBMISSION OF APPUCATION.—A laboratory 
that has been denied, or has lost, accreditation under this subtitle 
shgdl not reapply for accreditation until the expiration of at least 6 
months after such denial or loss of accreditation. Corrective actions 
taken by the laboratory to address deficiencies upon which the 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3565 
denial or loss of accreditation was based must accompany the 
reapplication. 
SEC. 1326. REPORTING. 
7 USC 138e. 
(a) IN GENERAL.—Each laboratory or individual that performs, 
brokers, or otherwise arranges for the performance of a pesticide 
chemical analysis of food shall prepare and submit a report, simulta-
neously to the Secretary, the Secretary of Health and Human 
Services, and to the owner of such food, that shall contain any 
finding of pesticide chemical residues in such food— 
(1) for which no chemical residue tolerance or exemption has 
been established; 
(2) that is in excess of residue tolerances; or 
(3) for which the chemical residue tolerance has been revoked 
or the chemical residue is otherwise not permitted by the 
Environmental Protection Agency. 
O
b
) TIMING OF REPORT.—A laboratory shall submit the report 
required under subsection (a) to the Secretary, the Secretary of 
Health and Human Services, and the owner of such food as soon as 
practicable after the completion of the analysis of such food. 
(c) GUIDELINES.—The Secretary shall adopt standardized reporting 
guidelines to be applied to laboratories under this section and shall 
provide such guidelines to laboratories accredited under this sub-
title, £is well as other sources of information regarding applicable 
pesticide chemical tolerances. 
SEC. 1327. FEES. 
7 USC 138f. 
(a) IN GENERAL.—At the time that an application for accreditation 
is received by the Secretary, and annually thereafter, a laboratory 
seeking such accreditation under this subtitle shall pay a non-
refundable accreditation fee. 
Oo) AMOUNT OF FEE.—The fee required under subsection (a) shall 
be established by the Secretary in an amount that will offset the 
cost of the program established by this subtitle. 
(c) REIMBURSEMENT OF EXPENSES.—Each laboratory that is accred-
ited under this subtitle or that has applied for accreditation under 
this subtitle shall reimburse the Secretary for reasonable travel and 
other expenses necessary to perform onsite inspections of such 
laboratory. 
(d) ADJUSTMENT OF FEES.—The Secretary may, on an annual basis, 
adjust the fees imposed under this section as necessary to support 
the full costs of the program established by this subtitle. 
SEC. 1328. PUBLIC DISCLOSURE. 
7 USC 138g. 
The results of the evaluations of laboratories conducted by the 
Secretary under this subtitle shall be made available to the Sec-
retary of Health and Human Services and to the public on request. 
SEC. 1329. REGULATIONS. 
7 USC 138h. 
The Secretary shall promulgate regulations to carry out this 
subtitle. 
SEC. 1330. EFFECT OF OTHER LAWS. 
7 USC 138i. 
Nothing in this subtitle shall alter the authority of the Secretary 
of Health and Human Services under the Federal Food, Drug, and 
Cosmetic Act (21 U.S.C. 301 et seq.). 
104 STAT. 3566 
PUBLIC LAW 101-624—NOV. 28, 1990 
7 use 1622 note 
Subtltlc C—Cosnictic Appearance 
SEC. 1351. DEFINITION. 
As used in this subtitle, the term "cosmetic appearance" means 
the exterior appearance of an agricultural commodity, including 
changes to that appearance resulting from superficial damage or 
other alteration that do not significantly affect jdeld, taste, or 
nutritional value. 
SEC. 1352. RESEARCH. 
(a) REQUIREMENT.—The Secretary of Agriculture shall conduct 
research to examine the effects, to the extent listed in subsection (b), 
of grade standards and other regulations, as developed and promul-
gated pursuant to the Agricultural Marketing Act of 1946 (7 U.S.C. 
1621 et seq.), and other statutes governing cosmetic appearance. 
GJ) SCOPE OF RESEARCH.—The primary goal of this research is to 
investigate the extent to which grade standards and other regula-
tions governing cosmetic appearance affect pesticide use in the 
production of perishable commodities. The research shall also— 
(1) determine pesticide application levels for United States 
perishable commodity production and assess trends, and factors 
influencing those trends, of pesticide application levels since 
1975; 
(2) determine the extent to which Federal grade standards 
and other regulations affect pesticide use in agriculture for 
cosmetic appearance; 
(3) determine the effect of reducing emphasis on cosmetic 
appearance in grade standards and other regulations on— 
(A) the application and availability of pesticides in agri-
culture; 
(B) the adoption of agricultural practices that result in 
reduced pesticide use; 
(C) production and marketing costs; 
(D) domestic and international markets and trade for 
perishable commodities; 
(4) determine the extent to which grade standards and other 
regulations reflect consumer preferences; 
(5) develop options for implementation of food marketing 
policies and practices that will remove obstacles that may exist 
to pesticide use reduction, based on the findings of research 
conducted under this section. 
(c) FIELD RESEARCH.— 
(1) LENGTH OF PROJECTS.—The Secretary of Agriculture shall 
implement, not later than 12 months after the date of enact-
ment of this Act, a minimum of three, 2-year market research 
projects, in at least three States, to demonstrate and evaluate 
the feasibility of consumer education and information pro-
grams. 
(2) SCOPE OF FIELD RESEARCH.—Research under paragraph (1) 
shall be conducted to evaluate programs designed to— 
(A) offer consumers choices among perishable commod-
ities produced with different production practices; 
(B) provide consumers with information about agricul-
tural practices used in the production of perishable 
commodities; or 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3567 
(C) educate the public about the relationship, as deter-
mined in the research conducted under this subtitle, be-
tween the cosmetic appearance of perishable commodities 
and pesticide use. 
(d) DISSEMINATION OF RESULTS.—The Secretary of Agriculture 
shall disseminate to concerned parties the results obtained from 
prior scientifically valid research concerning Federal marketing 
policies and practices described in this section to avoid any duplica-
tion of effort and to ensure that current knowledge concerning such 
policies and practices is enhanced. 
(e) ADVISORY COMMITTEE.— 
(1) ESTABLISHMENT.—The Secretary of Agriculture shall estab-
lish an advisory committee for the purpose of providing ongoing 
review of the implementation of the requirements in this sec-
tion and providing the Secretary of Agriculture with rec-
ommendations regarding the implementation of those require-
ments. 
(2) MEMBERSHIP.—The Advisory Committee shall consist of 12 
members comprised of three representatives from not-for-profit 
consumer organizations, three representatives from not-for-
profit environmental organizations, three representatives from 
production agriculture and the perishable commodity grower 
and shipper community, and three representatives from the 
food retailing sector, each with experience in the policy issues 
discussed in this section. 
(f) REPORT.—The Secretary of Agriculture shall report to Congress 
on the research conducted under this section no later than Septem-
ber 30, 1992. The Secretary shall report on the research conducted 
under subsection (c) no later than September 30,1993. 
SEC. 1353. CHANGES IN PROCEDURAL REGULATIONS. 
With regard to Federal grade standards developed and promul-
gated pursuant to the Agricultural Marketing Act of 1946 (7 U.S.C. 
1621 et seq), the Secretary of Agriculture shall: 
(1) Take into account the impact of those standards on the 
ability of perishable commodity growers to reduce the use of 
pesticides. 
(2) Provide for citizens outside of the perishable commodity 
industry fair and reasonable opportunity to formally petition a 
change in grade standards. 
(3) Provide for a comment period after a formal petition to 
change grade standards has been made to enable all interested 
parties to submit information. The Secretary of Agriculture 
shall evaluate the information and consider it in the revision 
process. 
(4) Provide interested parties with annual status reports Reports. 
during the period 1992 through 1994, updated upon request, on 
all pending grade standard changes the Department of Api-
culture is considering. 
SEC. 1354. AUTHORIZATION OF APPROPRIATIONS. 
There are authorized to be appropriated to carry out the activities 
required imder this subtitle, $4,000,000 for each fiscal year. 
104 STAT. 3568 
PUBLIC LAW 101-624—NOV. 28, 1990 
Subtitle D—Miscellaneous 
Conservation 
Program 
Improvements 
Act. 
16 u s e 3801 
note. 
SEC. 1361. AMENDMENT TO THE PERISHABLE AGRICULTURAL COMMOD-
ITIES ACT. 
Section 3(b) of the Perishable Agricultural Commodities Act of 
1930 (7 U.S.C. 49900))) is amended— 
(1) by striking ": Provided, That the" and inserting the follow-
ing: ". Any reserve funds in the Perishable Agricultural 
Commodities Act Fund may be invested by the Secretary in 
insured or fuUy-coUateralized interest-bearing accounts or, at 
the discretion of the Secretary, by the Secretary of the Treasury 
in United States Government debt instruments. Any interest 
earned on such reserve funds shall be credited to the Perishable 
Agricultural Commodities Act Fund and shall be available for 
the same purposes as the fees deposited in such fund. The"; and 
(2) by striking ": Provided further, That financial" and insert-
ing ". Financial". 
SEC. 1362. WINE AND WINEGRAPE INDUSTRY STUDY. 
(a) STUDY.—The Secretary of Agriculture shall conduct a study to 
determine how the Department of Agriculture might best work with 
and support the United States wine and winegrape industry. Such 
study shall— 
(1) be designed to determine whether existing Department of 
Agriculture programs could be improved to better assist and 
support the United States wine and winegrape industry; 
(2) be designed to determine whether new methods or pro-
grams implemented by the Department of Agriculture could 
enhance wine and winegrape production and processing and 
expand markets for United States wine and winegrapes; 
(3) be conducted in consultation with local, state, and national 
associations or organizations of wine and winegrape producers; 
(4) give special emphasis to States or other geographic areas 
that have not tradition£illy had a wine and winegrape industry. 
Ot)) REPORT.—The Secretary of Agriculture shall submit a report 
detailing the determinations made in the study under subsection (a) 
to the Committee on Agriculture of the House of Representatives 
and the Committee on Agriculture, Nutrition, and Forestry of the 
Senate not later thsin December 31, 1991. Such report shsill also 
include any recommendations to the Congress for legislation the 
Secretary determines may be necessary to implement the programs 
or methods specified under subsection (a). 
TITLE XIV—CONSERVATION 
SEC. 1401. SHORT TITLE. 
This title may be cited as the "Conservation Program Improve-
ments Act". 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3569 
Subtitle A—Highly Erodible Land 
Conservation 
SEC. 1411. PROGRAM INELIGIBILITY. 
Section 1211 of the Food Security Act of 1985 (16 U.S.C. 3811) is 
amended— 
(1) in the first sentence by inserting after "is predominate" 
the following: ", or designates land on which highly erodible 
land is predominate to be set aside, diverted, devoted to con-
servation uses, or otherwise not cultivated under a program 
administered by the Secretary to reduce production of an agri-
cultural commodity, as determined by the Secretary"; 
(2) in paragraph (IXD) by inserting before the semicolon ", 
under section 132 of the Disaster Assistance Act of 1989 (16 
U.S.C. 1421 note), or under any similar provision enacted subse-
quent to August 14,1989"; 
(3) in paragraph (1)(E) by striking the final "or"; 
(4) in paragraph (2) by striking the period at the end and 
inserting "; or"; and 
(5) by adding at the end the following: 
"(3) during such crop year— 
"(A) a payment made under section 8, section 12 or 
section 16(b) of the Soil Conservation and Domestic Allot-
ment Act (16 U.S.C. 590h, 5901 or 590p(b)); 
"(B) a pa3rment made under section 401 or section 402 of 
the Agricultural Credit Act of 1978 (16 U.S.C. 2201 or 2202); 
"(C) a payment under any contract entered into pursuant 
to section 1231; 
"(D) a payment under chapter 2; 
"(E) a pa3mient under chapter 3; or 
"(F) a pajrment, loan or other assistance under section 3 
or section 8 of the Watershed Protection and Flood Preven-
tion Act (16 U.S.C. 1003 or 1006a).". 
SEC. 1412. EXEMPTIONS. 
(a) CONSERVATION COMPLIANCE.—Section 1212(a) of the Food Secu-
rity Act of 1985 (16 U.S.C. 3812(a)) is amended by adding at the end 
thereof the following new paragraphs: 
"(3) Any person who owns or operates highly erodible land that 
was the subject of a contract entered into under subchapter B of 
chapter 1 of subtitle D shall, if the conservation plan established 
under this subtitle for such land requires structures to be con-
structed, have until 2 years after the expiration of such contract to 
comply with the conservation plan, or a longer period of time if the 
Secretary determines compliance is otherwise technically or 
economically not feasible, or such longer period is otherwise appro-
priate, before such person will be subject to program ineligibility 
with respect to such land under section 1211. 
"(4) On the expiration of a contract entered into under subchapter 
B of chapter 1 of subtitle D, the provisions of this subtitle shall apply 
to the acreage that was the subject of such contract.". 
(b) INADVERTENT ACTIONS; REDUCTION IN CERTAIN PAYMENTS, 
LOANS, AND ASSISTANCE.—Section 1212 of the Food Security Act of 
1985 (16 U.S.C. 3812) is amended— 
(1) in subsection (bXD, by inserting "or" after the semicolon; 
104 STAT. 3570 
PUBLIC LAW 101-624—NOV. 28, 1990 
(2) in subsection (bX2), by striking the semicolon and inserting 
a period; 
(3) by redesignating subsection (c) as subsection (d); 
(4) by redesignating the paragraphs (3) through (5) of subsec-
tion Ot)) as paragraphs (1) through (3), respectively, of subsection 
(c) and by inserting sifter subsection (bX2) the following: 
"(c) No person shall become ineligible under section 1211 for 
program loans, payments, and benefits as the result of the produc-
tion of a crop of an agricultural commodity or the designation of 
land to be set aside, diverted, devoted to conservation uses, or 
otherwise not cultivated under a program administered by the 
Secretary to reduce production of an agricultural commodity (here-
after in this subsection referred to as 'set aside')—"; 
(5) in subsection (cXlXB), as amended by paragraph (4), by 
inserting "for the protection of highly erodible land that has 
been set aside or" after "adequate"; and 
(6) in subsection (cX2), as amended by paragraph (4)— 
(A) by inserting "or set aside" after "that is planted"; and 
(B) by inserting "or set aside" after "that was planted". 
(c) TENANTS.—Section 1212 of the Food Security Act of 1985 (16 
U.S.C. 3812) (as amended by subsection (b) of this section) is amend-
ed by adding at the end the following new subsection: 
"(e) If a tenant is determined to be ineligible for pajonents and 
other benefits under section 1211, the Secretary may limit such 
ineligibility only to the farm which is the basis for such ineligibility 
determination if— 
"(1) the tenant has established to the satisfaction of the 
Secretary that— 
"(A) the tenant has made a good faith effort to meet the 
requirements of this section, including enlisting the assist-
ance of the Secretary to obtain a reasonable conservation 
compliance plan for such farm; and 
"(B) the landlord on the farm refuses to comply with such 
plan on such farm; and 
"(2) the Secretary determines that such lack of compliance is 
not a part of a scheme or device to avoid such compliance. 
Reports. 
The Secretary shall provide an annual report to the Committee on 
Agriculture of the House of Representatives and the Committee on 
Agriculture, Nutrition, and Forestry of the Senate concerning the 
ineligibility determinations limited during the previous 12-month 
period under this subsection.". 
(d) GRADUATED SANCTIONS, HIGHLY ERODIBLE LAND CONSERVA-
TION.—Section 1212 of the Food Security Act of 1985 (16 U.S.C. 3812) 
(as amended by subsection (c) of this section) is further amended by 
adding at the end thereof the following new subsection: 
"(fKD Except to the extent provided in paragraph (2), no person 
shall become ineligible under section 1211 for program loans, pay-
ments, and benefits as a result of the failure of such person to 
actively apply a conservation plan that documents the decisions of 
such person with respect to location, land use, tillage systems, and 
conservation treatment measures and schedules prepared under 
subsection (a), if the Secretary determines that such person has— 
"(A) not violated the provisions of section 1211 within the 
previous 5 years on a farm; and 
"(B) acted in good faith and without the intent to violate the 
provisions of this subtitle. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3571 
"(2) If the Secretary determines that a person who has failed to 
comply with the provisions of section 1211 meets the requirements 
of paragraph (1), the Secretary shall, in lieu of appljdng the ineli-
gibility provisions in section 1211, reduce by not less than $500 nor 
more than $5,000, depending on the seriousness of the violation as 
determined by the Secretary, program benefits described in section 
1211 that such producer would otherwise be eligible to receive in a 
crop year. 
"(3) Any person whose benefits are reduced in any crop year 
under this subsection shall continue to be eligible for all of the 
benefits described in section 1211 for any subsequent crop year if, 
prior to the beginning of such subsequent crop year, the Secretary 
determines that such person is actively appljdng a conservation plsm 
prepared under subsection (a) according to the schedule set forth in 
such plan. 
"(4) Notwithstanding any other provision of this subtitle, no 
person shall become ineligible under section 1211 for program loans, 
payments, and benefits as a result of the failure of such person to 
actively apply a conservation plan that documents the decisions of 
such person with respect to location, land use, tillage systems, and 
conservation treatment measures and schedules prepared under 
subsection (a), if the Secretary— 
"(A) determines that such failure results in a violation of 
section 1211 that is technical and minor in nature and that such 
violation has a minimal effect on the erosion control purposes of 
the conservation plan applicable to the land on which such 
violations has occurred; 
"(B) determines that such failure is due to circumstances 
beyond the control of the person; or 
'(C) grants the person a temporary variance from the prac-
tices specified in the plan for the purpose of handling a specific 
problem. 
A determination or the granting of a variance by the Secretary 
under this paragraph shall not be counted as a violation for the 
purposes of paragraph (IXA).". 
(e) INFORMATION,—Section 1212 of the Food Security Act of 1985 
(16 U.S.C. 3812) (as amended by subsection (d) of this section) is 
further amended by adding at the end thereof the following new 
subsection: 
"(g) The Secretary, in providing assistance to an individual in the 
preparation or revision of a conservation plan under this section, 
shall provide such individual with information— 
"(1) concerning cost effective and applicable erosion control 
measures that may be available to such individual to meet the 
requirements of this section; and 
"(2) concerning crop flexibility, base adjustment, and con-
servation assistance options that may be available to such 
individual to meet the requirements of this section, including 
the provisions of titles X, XII, and XIII, of the Food, Agri-
culture, Conservation, and Trade Act of 1990 (or the amend-
ments made by such titles).". 
(f) NONCOMMERCIAL PRODUCTION OF AGRICULTURAL COMMOD-
ITIES.—Section 1212 of the Food Security Act of 1985 (16 U.S.C. 3812) 
(as amended by subsection (e) of this section) is further amended by 
adding at the end thereof the following new subsection: 
"(h) Section 1211 shall not apply to the noncommercial production 
of agricultural commodities on a farm if such production is limited 
104 STAT. 3572 
PUBLIC LAW 101-624—NOV. 28, 1990 
to two acres or less and if the Secretary determines that such 
production is not intended to circumvent the conservation require-
ments otherwise applicable to lands under this subtitle.". 
Subtitle B—Wetland Conservation 
* 
SEC. 1421. WETLAND PROGRAM IMPROVEMENTS. 
(a) DEFINITION.—Section 1201(aX16) of the Food Security Act of 
1985 (16 U.S.C. 3801(aX16)) is amended by amending the first sen-
tence to read as follows: 
"(16) The term 'wetland', except when such term is part of the 
term 'converted wetland', means land that— 
"(A) has a predominance of hydric soils; 
"(B) is inundated or saturated by surface or groundwater 
at a frequency and duration sufficient to support a preva-
lence of hydrophytic vegetation typically adapted for life in 
saturated soU conditions; and 
"(C) under normal circumstances does support a preva-
lence of such vegetation.", 
(b) WETLAND.—Section 1221 of the Food Security Act of 1985 (16 
U.S.C. 3821) is amended— 
(1) by striking "Except as provided" and inserting "(a) Except 
as provided"; 
(2) in paragraph (IXD), by inserting before the semicolon ", 
under section 132 of the Disaster Assistance Act of 1989 (16 
U.S.C. 1421 note), or under any similar provision enacted subse-
quent to August 14,1989"; 
(3) in paragraph (IXE), by striking the final "or"; 
(4) in paragraph (2), by striking the period at the end and 
inserting a "; or"; 
(5) by adding at the end the following: 
"(3) during such crop year— 
"(A) a payment made under section 8, section 12, or 
section 16(b) of the Soil Conservation and Domestic Allot-
ment Act (16 U.S.C. 590h, 5901 or 590p(b)); 
"(B) a pajrment made under section 401 or section 402 of 
the Agricultural Credit Act of 1978 (16 U.S.C. 2201 or 2202); 
"(C) a pajmient under any contract entered into pursuant 
to section 1231; 
"(D) a pajrment under chapter 2; 
"(E) a payment under chapter 3; or 
"(F) a payment, loan or other assistance under section 3 
or section 8 of the Watershed Protection and Flood Preven-
tion Act (16 U.S.C. 1003 or 1006a)."; and 
(6) by adding after subsection (a) (as designated by paragraph 
(D), a new subsection 0?) as follows: 
"(b) Except as provided in section 1222 and notwithstanding any 
other provision of law, any person who in any crop year subsequent 
to the date of enactment of the Food, Agriculture, Conservation, and 
Trade Act of 1990 converts a wetland by draining, dredging, filling, 
leveling, or any other means for the purpose, or to have the effect, of 
making the production of an agricultural commodity possible on 
such converted wetland shall be ineligible for those pajnnents, loans, 
or programs specified in subsections (a) (1) through (3) for that crop 
year and all subsequent crop years.". 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3573 
SEC. 1422. DELINEATION OF WETLAND; EXEMPTIONS. 
Section 1222 of the Food Security Act of 1985 (16 U.S.C. 3822) is 
amended to read as follows: 
"SEC. 1222. DELINEATION OF WETLANDS; EXEMPTIONS. 
"(a) DELINEATION OF WETLANDS.— 
"(1) WETLAND DELINEATION MAPS.—The Secretary shall delin-
eate wetlands on wetland delineation maps. The Secretary shall 
make a reasonable effort to make an on-site wetland determina-
tion whenever requested by an owner or operator, prior to such 
delineation. 
"(2) CERTIFICATION.—Upon providing notice to 
affected 
owners or operators, the Secretary shall certify each such map 
as sufficient for the purpose of making determinations of ineli-
gibility for program benefits under section 1221 and shall, in 
accordance with section 1243, provide an opportunity to appeal 
such delineations to the Secretary prior to making such certifi-
cation final. In the case of an appeal, the Secretary shall review 
and certify the accuracy of the mapping of all lands subject to 
the appeal mapped prior to the date of enactment of the Food, 
Agriculture, Conservation, and Trade Act of 1990 for the pur-
pose of wetland delineations to ensure that wetland on such 
lands has been accurately delineated. Prior to rendering a 
decision on any such appeal, the Secretary shall conduct an on-
site inspection of the subject land. The Secretary shall not be 
required to provide an opportunity for an appeal of delineations 
completed prior to the enactment of this subsection that are not 
changed, and for which an appeal had already occurred and, in 
connection with such previous appeal, an on-site determination 
had been conducted. 
"(3) PuBUC usT.—The Secretary shall maintain a public list-
ing of all such certifications that have been completed. 
(4) PERIODIC REVIEW AND UPDATE.—The Secretary shall pro- Regulations. 
vide by regulation a process for the periodic review and update 
of such wetland delineations as the Secretary deems appro-
priate. No person shall be adversely affected because of having 
taken an action based on a previous determination by the 
Secretary. 
"(b) EXEMPTIONS.—No person shall become ineligible under sec-
tion 1221 for program loans, payments, and benefits— 
"(1) as the result of the production of an agricultural commod-
ity on— 
"(A) converted wetland if the conversion of such wetland 
was commenced before December 23,1985; 
"(B) an artificial lake, pond, or wetland created by 
excavating or diking nonwetland to collect and retain water 
for purposes such as water for livestock, fish production, 
irrigation (including subsurface irrigation), a settling basin, 
cooling, rice production, or flood control; 
"(C) a wet area created by a water delivery system, 
irrigation, irrigation system, or application of water for 
irrigation; or 
"(D) wetland on which the owner or operator of a farm or 
ranch uses normal cropping or ranching practices to 
produce an agricultural commodity in a manner that is 
consistent for the area where such production is possible as 
a result of a natural condition, such as drought, and is 
104 STAT. 3574 
PUBLIC LAW 101-624—NOV. 28, 1990 
without action by the producer that destroys a natural 
wetland characteristic; or 
"(2) for the conversion of— 
"(A) an artificial lake, pond, or wetland created by 
excavating or diking nonwetland to collect and retain water 
for purposes such as water for livestock, fish production, 
irrigation (including subsurface irrigation), a settling basin, 
cooling, rice production, or flood control; or 
"(B) a wet area created by a water delivery system, 
irrigation, irrigation system, or the application of water for 
irrigation. 
"(c) ON-SITE INSPECTION REQUIREMENT.—No program loans, pay-
ments, or benefits shall be withheld from a person under this 
subtitle unless the Secretary has conducted an on-site visit of the 
subject land. 
"(d) PRIOR LOANS.—Section 1221 shall not apply to a loan de-
scribed in section 1221 made before December 23,1985. 
"(e) NoNWETLANDS.—The Secretary shall exempt from the ineli-
gibility provisions of section 1221 any action by a person upon lands 
in any case in which the Secretary determines that any one of the 
following does not apply with respect to such lands: 
"(1) Such lands have a predominance of hydric soils. 
"(2) Such lands are inundated or saturated by surface or 
groundwater at a frequency and duration sufficient to support a 
prevalence of hydrophytic vegetation tjrpically adapted for life 
in saturated soil conditions. 
"(3) Such lands, under normal circumstances, support a 
prevalence of such vegetation. 
"(f) MINIMAL EFFECT; MITIGATION.—The Secretary shall exempt a 
person from the ineligibility provisions of section 1221 for any action 
associated with the production of an agricultural commodity on a 
converted wetland, or the conversion of a wetland, if, as determined 
by the Secretary— 
"(1) such action, individually and in connection with all other 
similar actions authorized by the Secretary in the area, will 
have a minimal effect on the functional hydrological and bio-
logical value of the wetland, including the value to waterfowl 
and wildlife; 
"(2) such wetland has been frequently cropped prior to the 
date of such action and the wetland values, acreage, and func-
tions are mitigated by the producer through the restoration of a 
converted wetland, the conversion of which occurred or was 
commenced prior to December 23, 1985, where such restoration 
is— 
"(A) in accordance with a restoration plan; 
"(B) in advance of, or concurrent with, such action; 
"(C) not at the expense of the Federal Government; 
"(D) on not greater than a one-for-one acreage basis 
unless more acreage is needed to provide equivalent func-
tions and values that will be lost as a result of such wetland 
conversion to be mitigated; 
"(E) on lands in the same general area of the local 
watershed as the converted wetland; and 
"(F) with respect to such restored wetland, made subject 
to an easement to be recorded on public land records, and 
which shall remain in force for £is long as the converted 
wetland for which the restoration is to mitigate remains in 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3575 
agricultural use or is not returned to its original wetland 
classification with equivalent functions and values, and 
which easement prohibits making alterations to such re-
stored wetland that lower the restored wetland's functions 
and values; or 
"(3) such wetland was converted subsequent to December 23, 
1985, but prior to the date of enactment of this section, and the 
wetland values, acreage, and functions are mitigated by the 
producer through the restoration of a converted wetland, the 
conversion of which occurred or was commenced prior to 
December 23, 1985, if such restoration meets the requirements 
of subparagraphs (A), (B), (C), (D), (E), and (F) of paragraph (2). 
"(g) MITIGATION APPEALS.—A producer shall be afforded the right 
to appeal, under section 1243, the imposition of a mitigation agree-
ment requiring greater than one-to-one acreage mitigation to which 
the producer is subject. 
"(h) G
r
O
O
D FAITH EXEMPTION; GRADUATED SANCTIONS.— 
"(1) GOOD FAITH EXEMPTION.—A person's ineligibility under 
section 1221 for program loans, pa5mients, and benefits as the 
result of the conversion of a wetland subsequent to the date of 
enactment of this subsection, or the production of an agricul-
tural commodity on a converted wetland subsequent to Decem-
ber 23,1985, may be reduced under paragraph (2) if— 
"(A) such person is actively restoring the wetland under 
an agreement entered into with the Secretary to fully 
restore the characteristics of the converted wetland to its 
^ 
prior wetland state, or such person has previously restored 
the characteristics of the converted wetland to its prior 
wetland state as determined by the Secretary; and 
"(B) the Secretary determines that— 
"(i) the person has not otherwise violated the provi-
sions of section 1221 in the previous 10-year period on a 
farm; and 
"(ii) such person converted a wetland, or produced an 
agricultural commodity on a converted wetland, in 
good faith and without the intent to violate the provi-
sions of section 1221. 
"(2) GRADUATED SANCTIONS.—If the Secretary determines 
that a person who has violated the provisions of section 
1221 meets the requirements of paragraph (1), the Secretary 
shall, in lieu of applying the ineligibility provisions in 
section 1221, reduce by not less than $750 nor more than 
$10,000, depending on the seriousness of the violation, pro-
gram benefits described in section 1221 that such person 
would otherwise be eligible to receive in a crop year. 
"(3) REUEF.—The relief allowed by this subsection shall 
include the restoration of benefits withheld for violations 
that occurred prior to the date of enactment of this section. 
"(i) RESTORATION.—Any person who is determined to be ineligible 
for program benefits under section 1221 for any crop year shall not 
be ineligible for such program benefits under such section for any 
subsequent crop year if, prior to the beginning of such subsequent 
crop year, the person has fully restored the characteristics of the 
converted wetland to its prior wetland state. 
"(j) 
DETERMINATIONS; RESTORATION AND MmoATioN 
PLANS; 
REPORTING; MONITORING ACTIVITIES.— 
104 STAT. 3576 
PUBLIC LAW 101-624—NOV. 28, 1990 
Government 
"(1) DETERMINATIONS; PLANS.—Technical determinations and 
contracts. 
^j^^ development of restoration and mitigation plans under this 
section shall be made through the agreement of the local rep-
resentative of the Soil Conservation Service and a representa-
tive of the Fish and Wildlife Service. If agreement cannot be 
reached at the local level under the preceding sentence, such 
determinations shall be referred to the State Conservationist, 
who in making a determination under this paragraph, shall 
consult with the Fish and Wildlife Service. 
"(2) REPORT OF DETERMINATIONS.—The State Conservationist 
and a representative of the Fish and Wildlife Service shall 
report to their respective national offices concerning all deter-
minations made under paragraph (1) at the State level as a 
result of an agreement not being reached at the local level. 
"(3) MONITORING ACTIVITIES.—The Secretary shall conduct 
such monitoring activities as are necessary to ensure the suc-
cess and effectiveness of the wetland restorations undertaken 
pursuant to this section.". 
SEC. 1423. CONSULTATION. 
Section 1223 of the Food Security Act of 1985 (16 U.S.C. 3823) is 
eimended— 
(1) in paragraph (2), by striking "and"; 
(2) in paragraph (3), by striking the period and inserting "; 
and"; and 
(3) by adding at the end the following: 
"(4) mitigation; and 
"(5) the restoration of wetland values and functions on con-
verted wetland as required under this subtitle.". 
SEC. 1424. FAIRNESS OF COMPLIANCE. 
Subtitle C of title XII of the Food Security Act of 1985 (16 U.S.C. 
3821 et seq.) is amended by adding at the end the following new 
section: 
16 u s e 3824. 
"SEC. 1224. FAIRNESS OF COMPLIANCE. 
"If the actions of an unrelated person or public entity, outside the 
control of, and without the prior approval of, the landowner or 
tenant result in a change in the characteristics of cropland that 
would cause the land to be determined to be a wetland, the giffected 
land shall not be considered to be wetland for purposes of this 
subtitle.". 
Subtitle C—Agricultural Resources 
Conservation Program 
SEC. 1431. AGRICULTURAL RESOURCES CONSERVATION PROGRAM. 
Subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 
1231 et seq.) is amended— 
(1) in the subtitle heading, by striking "Conservation Re-
serve" and inserting "Agricultural Resources Conservation Pro-
gram"; and 
(2) by inserting before section 1231 the following: 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3577 
•CHAPTER 1—ENVIRONMENTAL CONSERVATION ACREAGE 
RESERVE PROGRAM 
"Subchapter A—General Provisions 
"SEC. 1230. ENVIRONMENTAL CONSERVATION ACREAGE RESERVE PRO-
GRAM. 
"(a) ESTABLISHMENT.—During the 1991 through 1995 calendar 
years, the Secretary shall, in accordance with this chapter, establish 
an Environmentsd Conservation Acreage Reserve Program and im-
plement such program through contracts and the acquisition of 
easements to assist owners and operators of highly erodible lands, 
other fragile lands (including land with associated ground or surface 
water that may be vulnerable to contamination), and wetlands in 
conserving and improving the soil and water resources of the farms 
or ranches of such owners and operators. 
"(b) NUMBER OF ACRES.—In carrying out the Environmental Con-
servation Acreage Reserve Program, the Secretary shall enter into 
contracts with owners and operators and acquire interests in lands 
through easements from owners as provided for in subchapters B 
and C to place in the Environmental (Donservation Acreage Reserve 
Program during the 1986 through 1995 calendar years a total of not 
less than 40,000,000 nor more than 45,000,000 acres. 
"(c) IMPLEMENTATION.—The Secretary shall carry out the Environ-
mental (Conservation Acreage Reserve Program established under 
subsection (a) through the conservation reserve program and the 
wetland reserve program established in subchapters B and C, 
respectively. Acreage enrolled into the conservation reserve under 
subchapter B prior to the date of enactment of this chapter shall be 
considered to be land placed in the Environmental Conservation 
Acreage Reserve Program for the purposes of this chapter.". 
SEC. 1432. CONSERVATION RESERVE PROGRAM. 
Title XII of the Food Security Act of 1985 is amended— 
(1) by inserting after section 1230 (as added by section 1431 of 
this Act) the following: 
"Subchapter B—Conservation Reserve"; and 
(2) by amending section 1231 (16 U.S.C. 3831) to read as 
follows: 
"SEC. 1231. CONSERVATION RESERVE. 
"(a) IN GENERAL.—Through the 1995 calendar year, the Secretary 
shall formulate and carry out the enrollment of lands in a conserva-
tion reserve program through the use of contracts to assist owners 
and operators of lands specified in subsection (b) to conserve and 
improve the soil and water resources of such lands. 
"Ot)) EUGIBLE LANDS.—The Secretary may include in the program 
established under this subchapter— 
"(1) highly erodible croplands that— 
"(A) if permitted to remain untreated could substantially 
reduce the production capability for future generations; or 
"(B) can not be farmed in accordance with a plan imder 
section 1212; 
Government 
contracts. 
16 u s e 3830. 
Government 
contracts. 
104 STAT. 3578 
PUBLIC LAW 101-624—NOV. 28, 1990 
"(2) marginal pasture lands converted to wetland or estab-
lished as wildlife habitat prior to the enactment of the Food, 
Agriculture, (Conservation, and Trade Act of 1990; 
"(3) marginal pasture lands to be devoted to trees in or near 
riparian areas or for similar water quality purposes, not to 
exceed 10 percent of the number of acres of land that is placed 
in the conservation reserve under this subchapter in each of the 
1991 through 1995 calendar years; 
"(4) croplands that are otherwise not eligible— 
"(A) if the Secretary determines that (i) such lands 
contribute to the degradation of water quality or would 
pose an on-site or off-site environmental threat to water 
quality if permitted to remain in agricultural production, 
and (ii) water quality objectives with respect to such land 
cannot be achieved under the water quality incentives pro-
gram established under chapter 2; 
"(B) if such croplands are newly-created, permanent grass 
sod waterways, or are contour grass sod strips established 
and maintained as part of an approved conservation plan; 
"(C) that will be devoted to, and made subject to an 
easement for the useful life of, newly established living 
snow fences, permanent wildlife habitat, windbreaks, 
shelterbelts, or filterstrips devoted to trees or shrubs; or 
"(D) if the Secretary determines that such lands pose an 
off-farm environmental threat, or pose a threat of contin-
ued degradation of productivity due to soil salinity, if per-
mitted to remain in production. 
"(c) (DERTAIN LAND AFFECTED BY SECRETARIAL ACTION.—For pur-
poses of determining the eligibility of land to be placed in the 
conservation reserve established under this subchapter, land shall 
be considered planted to an agricultural commodity during a crop 
year if an action of the Secretary prevented land from being planted 
to the commodity during the crop year. 
"(d) MAXIMUM ENROLLMENT.—The Secretary may enter into con-
tracts under this section to place in the conservation reserve the 
amount of acres specified in section 1230(b). In enrolling such acres, 
the Secretary shall reserve 1 million acres for enrollment under this 
section in each of calendar years 1994 and 1995. 
"(e) DURATION OF CJONTRACT.— 
"(1) IN GENERAL.—For the purpose of carrying out this sub-
chapter, the Secretary shall enter into contracts of not less than 
10, nor more than 15, years. 
"(2) CERTAIN LANDS.—In the case of land devoted to hardwood 
trees, shelterbelts, windbreaks, or wildlife corridors under a 
contract entered into under this subchapter after October 1, 
1990, and land devoted to such uses under contracts modified 
under section 1235A, the owner or operator of such land may, 
within the limitations prescribed under this section, specify the 
duration of the contract. The Secretary may, in the case of land 
that is devoted to hardwood trees under a contract entered into 
under this subchapter prior to October 1, 1990, extend such 
contract for not to exceed 5 years, £is eigreed to by the owner or 
operator of such land and the Secretary. 
"(f) CJONSERVATION PRIORITY AREAS.— 
State listing. 
"(1) DESIGNATION.—Upon application by the appropriate 
State agency, the Secretary shall designate watershed areas of 
the Chesapeake Bay Region (Pennsylvania, Maryland, and Vir-
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3579 
ginia), the Great Lakes Region, the Long Island Sound Region, 
and other areas of special environmental sensitivity as con-
servation priority areas. 
"(2) EuGiBLE WATERSHEDS.—Watersheds eligible for designa-
tion under this subsection shall include areas with actual and 
significant adverse water quality or habitat impacts related to 
agricultural production activities. 
"(3) EXPIRATION.—Conservation priority area designation 
under this subsection shall expire after 5 years, subject to 
redesignation, except that the Secretary may withdraw a water-
shed's designation— 
"(A) upon application by the appropriate State agency; or 
"(B) in the case of areas specified in this subsection, if the 
Secretary finds that such areas no longer contain actual 
and significant adverse water quality or habitat impacts 
related to agricultural production activities. 
"(4) DUTY OF SECRETARY.—In utilizing the authority granted 
under this subsection, the Secretary shall attempt to maximize 
water quality and habitat benefits in such watersheds by 
promoting a significant level of enrollment of lands within such 
watersheds in the program under this subchapter by whatever 
means the Secretary determines appropriate and consistent 
with the purposes of this subchapter. 
"(g) MULTI-YEAR GRASSES AND LEGUMES.—For purposes of this Alfalfa. 
subchapter, alfalfa and other multi-year grasses and legumes in a 
rotation practice, approved by the Secretary, shall be considered 
agricultural commodities.". 
SEC. 1433. DUTIES OF OWNERS AND OPERATORS. 
(a) AGREEMENT PROVISIONS.—Section 1232(a) of the Food Security 
Act of 1985 (16 U.S.C. 3832(a)) is amended— 
(1) in paragraph (1), by striking "highly erodible cropland" 
and inserting "eligible lands"; 
(2) in paragraph (4)— 
(A) by inserting ", or water cover for the enhancement of 
wildlife," after "cover"; and 
(B) by inserting ", except that such water cover shall not 
include ponds for the purpose of watering livestock, irrigat-
ing crops, or raising fish for commercial purposes" after 
"land". 
(3) in paragraph (5), by inserting "in addition to the remedies 
provided under section 1236(d)," before "on the violation"; 
(4) in paragraph (6), by inserting before the semicolon at the 
end thereof ", or the transferee and the Secretary agree to 
modifications to such contract, where such modifications are 
consistent with the objectives of the program as determined by 
the Secretary;"; 
(5) in paragraph (7), by inserting ", and the Secretary may 
permit limited fall and winter grazing on such land where such 
grazing is incidental to the gleaning of crop residues on the 
fields in which such land is located for an applicable reduction 
in rental pa5mient" after "emergency"; 
(6) in paragraph (9), by striking "and" at the end thereof; 
(7) in paragraph (10), by striking the period and inserting 
"; and "; and 
(8) by adding at the end thereof the following new paragraph: 
39-194 O - 91 - 9 : QL 3 Part 5 
104 STAT. 3580 
PUBLIC LAW 101-624—NOV. 28, 1990 
"(11) with respect to any contract entered into after the date 
of enactment of this paragraph concerning highly erodible land 
in a county that has not reached the limitation established by 
section 1243(f)— 
"(A) not to produce an agricultural commodity for the 
duration of the contract on any other highly erodible land 
that such owner or operator has purchased aSter the date of 
enactment of this paragraph and that does not have a 
history of being used to produce an agricultural commodity 
other than forage crops; and 
"(B) on the violation of a contract described in subpara-
graph (A), to be subject to the sanctions described in para-
graph (5).". 
(b) ENVIRONMENTAL USE; ALLEY-CROPPING; FORECLOSURE.— Sec-
tion 1232 of the Food Security Act of 1985 (16 U.S.C. 3832) is 
amended by striking subsection (c) and adding the following new 
subsections: 
^o^'^stsand 
"(j.) ENVIRONMENTAL UsE.—To the extent practicable, not less 
Pla^nts^'^ "'^ 
than one-eighth of land that is placed in the conservation reserve 
under this subchapter during the 1991 through 1995 calendar years 
shall be devoted to trees, or devoted to shrubs or other noncrop 
vegetation or water that may provide a permanent habitat for 
wildlife including migratory waterfowl. 
"(d) ALLEY-CROPPING.— 
"(1) The Secretary may permit alley cropping of agricultured 
commodities on land that is subject to contracts entered into 
under this subchapter, if— 
"(A) such land is planted to hardwood trees; 
"(B) such agricultural commodities will be produced in 
conjunction with, and in close proximity to, such hardwood 
trees; and 
"(C) the owner or operator of such land agrees to imple-
ment appropriate conservation practices concerning such 
land. 
"(2) The Secretary shEill develop a bid system by which owners 
and operators may offer to reduce their annual rental payments 
in exchange for permission to produce agricultural commodities 
on such land in accordemce with this subsection. The Secretary 
shall not accept offers under this paragraph that provide for 
less than a 50 percent reduction in such annual payments. 
"(3) The Secretary shall ensure that the total annual rental 
payments over the term of any contract modified under this 
subsection are not in excess of that specified in the original 
contract. 
"(4) For the purposes of this subsection, the term 'alley crop-
ping' means the practice of planting rows of trees bordered on 
each side by a narrow strip of groundcover, alternated with 
wider strips of row crops or grgiin. 
"(e) FORECLOSURE.—Notwithstemding any other provision of law, 
an owner or operator who is a party to a contract entered into under 
this subchapter may not be required to make repayments to the 
Secretary of amounts received under such contract if the land that 
is subject to such contract has been foreclosed upon and the Sec-
retary determines that forgiving such repajnnents is appropriate in 
order to provide fair and equitable treatment. This subsection shall 
not void the responsibilities of such an owner or operator under the 
contract if such owner or operator resumes control over the property 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3581 
that is subject to the contract within the period specified in the 
contract. Upon the resumption of such control over the property by 
the owner or operator, the provisions of the contract in effect on the 
date of the foreclosure shall apply.". 
SEC. 1434. PAYMENTS. 
(a) COST SHARE ASSISTANCE.—Section 1234(b) of the Food Security 
Act of 1985 (16 U.S.C. 3834(b)) is amended to read as follows: 
"(bXD In making cost sharing payments to an owner or operator 
under a contract entered into under this subchapter, the Secretary 
shall pay 50 percent of the cost of establishing water quality and 
conservation measures and practices required under such contracts 
for which the Secretary determines that cost-sharing is appropriate 
and in the public interest. 
"(2) The Secretary shall not make any pajmtient under this sub-
chapter to the extent that the total amount of cost sharing pay-
ments provided to such owners and operators from all sources would 
exceed 100 percent of the total establishment costs. 
"(3) In the case of land devoted to the production of hardwood 
trees, windbreaks, shelterbelts, or wildlife corridors under a con-
tract entered into under this subchapter after the date of enactment 
of this section, or in the case of land converted to such production 
under section 1235A, the Secretary, in making cost share payments 
to an owner or operator of such land, shall pay 50 percent of the 
reasonable and necessary costs, as determined by the Secretary, 
incurred by such owner or operator for maintaining such plantings 
that are trees or shrubs, including the cost of replanting (if the trees 
or shrubs were lost due to conditions beyond the control of the 
owner or operator), during not less than the 2-year, and not more 
than the 4-year, period beginning on the date of such plantings, as 
determined appropriate by the Secretary. 
"(4) The Secretary may permit owners or operators who contract 
to devote at least 10 acres of land to the production of hardwood 
trees under this subchapter to extend the planting of such trees over 
a 3-year period if at least one-third of such trees are planted in each 
of the first 2 years. 
"(5) An owner or operator shall not be eligible to receive or retain 
cost share assistance under this subsection if such owner or operator 
receives any other Federal cost share assistance with respect to such 
land under any other provision of law.". 
(b) ACCEPTABILITY OF OFFERS; CONTINUOUS SIGN-UP FOR HARD-
WOOD TREES.— 
(1) ACCEPTABILITY OF OFFERS.—Section 1234(cX3) of the Food 
Security Act of 1985 (16 U.S.C. 3834(cX3)) is amended to read as 
follows: 
"(3) In determining the acceptability of contract offers, the Sec-
retary may— 
"(A) take into consideration the extent to which enrollment of 
the land that is the subject of the contract offer would improve 
soil resources, water quality, wildlife habitat, or provide other 
environmental benefits; and 
"(B) establish different criteria in various States and regions 
of the United States based upon the extent to which water 
quality or wildlife habitat may be improved or erosion may be 
abated.". 
(2) 
CONTINUOUS SIGN-UP FOR HARDWOOD TREES.—Section 
1234(c) of the Food Security Act of 1985 (16 U.S.C. 3834(c)) is 
Water pollution 
control. 
Forests and 
forest products. 
Plants. 
104 STAT. 3582 
PUBLIC LAW 101-624—NOV. 28, 1990 
further amended by adding at the end thereof the following new 
paragraph: 
"(4) In the case of acreage enrolled in the conservation reserve 
established under this subchapter that is to be devoted to hardwood 
trees, the Secretary may consider bids for contracts under this 
subsection on a continuous basis.". 
(c) STATE PAYMENTS.—Section 1234(d) of the Food Security Act of 
1985 (16 U.S.C. 3834(d)) is amended by adding at the end the 
following new paragraph: 
"(4) Pajrments to a producer under a special conservation reserve 
enhancement program described in subsection (fK4) shall be in the 
form of cash only.'. 
(d) OTHER PAYMENTS.—Section 1234(fK3) of the Food Security Act 
of 1985 (16 U.S.C. 3834(fX3)) is amended by inserting ", the Food, 
Agriculture, Conservation, and Trade Act of 1990," al^r "this Act". 
(e) EXEMPTION FROM SEQUESTRATION; OTHER STATE PAYMENTS.— 
Section 1234 of the Food Security Act of 1985 (16 U.S.C. 3834) is 
amended further by adding at the end the following new subsec-
tions: 
"(g) Notwithstanding any other provision of law, no order issued 
for any fiscal year under section 252 of the Balanced Budget and 
Emergency Deficit Control Act of 1985, as amended (2 U.S.C. 902) 
shall affect any payment under any contract entered into at any 
time that is subject to this subchapter, including contracts entered 
into prior to the date of enactment of this subsection. 
"(h) In addition to any pajonent under this subchapter, an owner 
or operator may receive cost share sissistance, rental payments, or 
tax benefits from a State or subdivision thereof for enrolling lands 
in the conservation reserve program.". 
SEC. 1435. CONVERSION OF LAND SUBJECT TO CONTRACT. 
Subtitle D of title XII of the Food Security Act of 1985 is amended 
by inserting after section 1235 (16 U.S.C. 3835) the following new 
section: 
16 u s e 3835a. 
"SEC. 1235A. CONVERSION OF LAND SUBJECT TO CONTRACT TO OTHER 
CONSERVING USES. 
"(a) CONVERSION TO TREES.— 
"(1) IN GENERAL.—The Secretary shall permit an owner or 
operator who has entered into a contract under this subchapter 
that is in effect on the date of enactment of this section to 
convert areas of highly erodible cropland that are subject to 
such contract, and that are devoted to vegetative cover, from 
such use to hardwood trees, windbreaks, shelterbelts, or wildlife 
corridors. 
"(2) TERMS.— 
"(A) EXTENSION OF CONTRACT.—With respect to any con-
tract on land to be devoted to hardwood trees, windbreaks, 
shelterbelts, or wildlife corridors under this section, if the 
original term of such contract was less than 15 years, the 
owner or operator may extend such contract to a term of 
not to exceed 15 years. 
"(B) 
EASEMENTS.—If such areas are 
converted 
to 
windbreaks, shelterbelts, or wildlife corridors under this 
section, the owner of such land shall enter into an agree-
ment to provide a conservation easement to the Secretary 
for the useful life of such plantings. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3583 
"(C) COST SHARE ASSISTANCE.—The Secretary shall pay 50 
percent of the cost of establishing conservation measures 
and practices authorized under this subsection for which 
the Secretary determines the cost sharing is appropriate 
and in the public interest. 
"O?) CONVERSION TO WETLANDS.—The Secretary shall permit an 
owner or operator who has entered into a contract under this 
subchapter that is in effect on the date of enactment of this section 
to restore areas of highly erodible cropland that are devoted to 
vegetative cover under such contract to wetlands i
f
— 
"(1) such areas are prior converted wetlands; 
"(2) the owner or operator of such areas enters into an 
agreement to provide the Secretary with a long-term or perma-
nent easement under subchapter C covering such areas; 
"(3) there is a high probability that the prior converted area 
can be successfully restored to wetland status; and 
"(4) the restoration of such areas otherwise meets the require-
ments of subchapter C. 
"(c) LIMITATION.—The Secretary shall not incur, through a conver-
sion under this section, any additional expense on such acres, 
including the expense involved in the original establishment of the 
vegetative cover, that would result in cost share for costs in excess of 
the costs that would have been subject to cost share for the new 
practice had that practice been the original practice. 
"(d) CONDITION OF CONTRACT.—An owner or operator shall as a 
condition of entering into a contract under subsection (a) participate 
in the Forest Stewardship Program established under section 5 of 
the Cooperative Forestry Assistance Act of 1978 (as amended by 
section 1215 of the Food, Agriculture, Conservation, and Trade Act 
of 1990).". 
SEC. 1436. EXTENDED BASE PROTECTION. 
Section 1236 of the Food Security Act of 1985 (16 U.S.C. 3835) is 16 USC 3836. 
amended by adding at the end the following new subsections: 
"(c) The Secretary shall offer the owner or operator of a farm or 
ranch an opportunity to extend the preservation of cropland base 
and allotment history pursuant to sul^ection (b) for such time as the 
Secretary determines to be appropriate after the expiration date of a 
contract under this subchapter at the request of such owner or 
operator. In return for such extension, the owner or operator shall 
Eigree to continue to abide by the terms and conditions of the 
original contract, except that— 
"(1) such owner or operator shall receive no additional cost 
share, annual rental, or bonus pajonent; and 
"(2) the Secretary may permit, subject to such terms and 
conditions as the Secretary may impose, hajdng and grazing of 
acreage subject to such agreement, except during any consecu-
tive 5 month period that is established by the State committee. 
Each 5 month period shall be established during the period 
beginning April 1 and ending October 31 of a year. In the case of 
a natural disaster, the Secretary may permit unlimited hajdng 
and grazing on such acreage. 
"(d) In addition to any other remedy prescribed by law, the 
Secretary may reduce or terminate the amount of cropland base and 
allotment history preserved pursugmt to subsection (c) for acreage 
with respect to which a violation of a term or condition occurs.". 
104 STAT. 3584 
PUBLIC LAW 101-624—NOV. 28, 1990 
16 use 3831 
SEC. 1437. STUDY OF LAND USE FOR EXPIRING CONTRACTS AND EXTEN-
note. 
SION OF AUTHORITY. 
(a) IN GENERAL.—The Secretary of Agriculture shall conduct a 
study of cropland subject to expiring conservation reserve contracts 
entered into prior to the date of enactment of this Act under subtitle 
D of title XII of the Food Security Act of 1985 (16 U.S.C. 3831 et seq.). 
Such study shall include the consideration of— 
(1) the environmental benefits of such lands that remain out 
of crop production as compared to the economic benefits that 
would result from returning such lands to production under 
adequate stewardship and mansigement; 
(2) the renewal of the contracts in a manner that allows for 
certain sustainable economic uses of cropland in return for 
lower rental payments; 
(3) the purchase of permanent easements permitting specified 
economic uses of cropland subject to the contracts; 
(4) the purchase of the cropland subject to the contracts; 
(5) the preservation of crop acresige bases associated with 
cropland subject to the contracts if the owner or operator 
continues to devote the cropland to conserving uses; 
(6) the purchase of crop acreage bases associated with crop-
land subject to the contracts; and 
(7) the expiration of the contracts. 
(b) REPORT.—Not later than December 31, 1993, the Secretary of 
Agriculture shall prepare and submit to the Committee on Agri-
culture of the House of Representatives £ind the Committee on 
Agriculture, Nutrition, and Forestry of the Senate a report concern-
ing the results of the study conducted under subsection (a) and 
recommendations concerning the treatment of lands subject to 
expiring contracts under subtitle D of title XII of the Food Security 
Act of 1985, proposed legislation addressing the treatment of such 
lands, and the projected cost of such treatment. 
(c) EXTENSIONS.—During the 1996 through 2000 calendar years, 
the Secretary of Agriculture may— 
(1) extend up to 10 years contracts entered into under sub-
chapter B of chapter 1 of subtitle D of title XII of the Food 
Security Act of 1985 (16 U.S.C. 3831) prior to the date of 
enactment of this Act; or 
(2) purchase long-term or permanent easements as provided 
for in chapter 3; 
at the option of the owner or operator on land that the Secretary 
has determined under the study conducted under subsection (a) 
should remain in conserving uses. 
SEC. 
1
4
3
8
. 
WETLANDS 
RESERVE 
PROGRAM. 
Subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 
3831 et seq.) is amended by adding after section 1236 the following 
new subchapter: 
"Subchapter C—Wetlands Reserve Program 
16 use 3837. 
"SEC. 1237. WETLANDS RESERVE PROGRAM. 
"(a) ElsTABUSHMENT.—The Secretary shall establish a wetlands 
reserve program to assist owners of eligible lands in restoring and 
protecting wetlands. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3585 
"(b) NUMBER OF ACRES.—To the extent practicable, the Secretary 
shall attempt to enroll into the wetlands reserve program, 1,000,000 
acres of land during the 1991 through 1995 calendar years; except 
that the Secretary may not enroll more than 200,000 acres in 1991, 
400,000 acres in the 1991 to 1992 period, 600,000 acres in the 1991 to 
1993 period, 800,000 acres in the 1991 to 1994 period, and 1,000,000 
acres in the 1991 to 1995 period. 
"(c) ELIGIBILITY.—For purposes of enrolling land in the wetland 
reserve established under this subchapter during the 1991 through 
1995 calendar years, land shall be eligible to be placed into such 
reserve if the Secretary, in consultation with the Secretary of the 
Interior at the local level, determines that— 
"(1) such land is farmed wetland or converted wetland, to-
gether with adjacent lands that are functionally dependent on 
such wetlands, except that converted wetlands where the 
conversion was not commenced prior to December 23, 1985, 
shall not be eligible to be enrolled in the program under this 
section; and 
"(2) the likelihood of the successful restoration of such land 
and the resultant wetland values merit inclusion of such land in 
the program taking into consideration the cost of such restora-
tion. 
"(d) OTHER ELIGIBLE LAND.—The Secretary may include in the 
wetland reserve established under this subchapter, together with 
land that is eligible under subsection (d)— 
"(1) farmed wetland and adjoining lands, enrolled in the 
conservation reserve, with the highest wetland functions and 
values, and that are likely to return to production after they 
leave the conservation reserve; 
"(2) other wetland of an owner that would not otherwise be 
eligible if the Secretary determines that the inclusion of such 
wetland in such easement would significantly add to the func-
tional value of the easement; and 
"(3) riparian areas that link wetlands that are protected by 
easements or some other device or circumstance that achieves 
the same purpose as an easement. 
"(e) INEUGIBLE LAND.—The Secretary may not acquire easements 
on— 
"(1) land that contains timber stands established under the 
conservation reserve under subchapter B; or 
"(2) pasture land established to trees under the conservation 
reserve under subchapter B. 
"(f) 
TERMINATION OF EXISTING CONTRACT.—The Secretary 
may 
terminate or modify an existing contract entered into under section 
1231(a) if eligible land that is subject to such contract is transferred 
into the program established by this subchapter. 
"(g) EASEMENTS.—The Secretary shall enroll lands in the wetland 
reserve through the purchase of easements as provided for in section 
1237 
A. 
"SEC. 1237A. EASEMENTS. 
16 USC 3837a. 
"(a) IN GENERAL.—To be eligible to place land into the wetland Government 
reserve under this subchapter, the owner of such land shall enter contracts. 
into an agreement with the Secretary— 
"(1) to grant an easement on such land to the Secretary; 
"(2) to implement a wetland easement conservation plan as 
provided for in this section; 
104 STAT. 3586 
PUBLIC LAW 101-624—NOV. 28, 1990 
Records. 
"(3) to Create and record an appropriate deed restriction in 
accordance with applicable State law to reflect the easement 
agreed to under this subchapter with respect to such lands; and 
"(4) to provide a written statement of consent to such ease-
ment signed by those holding a security interest in the land. 
"(b) TERMS OF EASEMENT.—An owner granting an easement under 
subsection (a) shall be required to provide for the restoration and 
protection of the functional values of wetland pursuant to a wetland 
easement conservation plan that— 
"(1) permits— 
"(A) repairs, improvements, and inspections on such land 
that are necessary to maintain existing public drainage 
systems if such land is subsequently restored to the condi-
tion required by the terms of the easement; and 
"(B) landowners to control public access on the esisement 
areas while identifying access routes to be used for wetland 
restoration activities and management and easement mon-
itoring; 
"(2) prohibits— 
"(A) the alteration of wildlife habitat and other natural 
features of such lEind, unless specifically permitted by the 
plan; 
"(B) the spraying of such land with chemicals or the 
mowing of such land, except where such sprajdng or 
mowing is permitted by the plan or is necessary— 
"(i) to comply with Federal or State noxious weed 
control laws; or 
"(ii) to comply with a Federal or State emergency 
pest treatment program; and 
"(C) any activities to be carried out on such participating 
landowner's or successor's land that is immediately adja-
cent to, and functionally related to, the land that is subject 
to the easement if such activities will alter, degrade, or 
otherwise diminish the functional value of the eligible land; 
and 
"(D) the adoption of any other practice that would tend to 
defeat the purposes of this subchapter, as determined by 
the Secretary; 
"(3) provides for the efficient and effective restoration of the 
functional values of wetlands; and 
"(4) includes such additional provisions as the Secretary 
determines are desirable to carry out this subchapter or to 
facilitate the practical administration thereof. 
"(c) RESTORATION PLANS.— 
"(1) PLANS.—The development of restoration plans under this 
section shall be made through the agreement of the local rep-
resentative of the Soil (Donservation Service and a representa-
tive of the Fish and Wildlife Service. If agreement cannot be 
reached at the local level under the preceding sentence within a 
reasonable period of time, such plans shall be referred to the 
State Conservationist, who in developing such plans under this 
pargigraph, shall consult with the Fish and Wildlife Service. 
"(2) REPORT.—The State Conservationist and a representative 
of the Fish and Wildlife Service shall report to their respective 
national offices concerning all plans developed under paragraph 
(1) at the State level as a result of an agreement not being 
reached at the local level. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3587 
"(d) C!oMPATiBLE USES.—Wetland reserve program lands may be 
used for compatible economic uses, including such activities as 
hunting and fishing, mans^ed timber harvest, or periodic haying or 
grazing, if such use is specifically permitted by the plan and consist-
ent with the long-term protection and enhancement of the wetlands 
resources for which the easement was established. 
"(e) TYPE AND LENGTH OP EASEMENT.—A conservation easement 
granted under this section— 
"(1) shall be in a recordable form; and 
"(2) shall be for 30 years, permanent, or the maximum dura-
tion allowed under applicable State laws. 
"(f) COMPENSATION.—Compensation for easements acquired by the 
Secretary under this subchapter shall be made in cash in such 
amount as is agreed to and specified in the easement sigreement, but 
not to exceed the fair market value of the land less the fair market 
value of such land encumbered by the easement. Lands may be 
enrolled through the submission of bids under a procedure estab-
lished by the Secretary. Compensation may be provided in not less 
than 5 nor more than 20 annual pajonents of either equal or 
unequal size, except in the case of a permanent easement, a single 
lump-sum pajonent may be provided, as agreed on by the owner and 
the Secretary. 
"(g) VIOLATION.—On the violation of the terms or conditions of the 
easement or related agreement entered into under subsection (a), 
the easement shall remain in force and the Secretary may require 
the owner to refund all or part of any pajnnents received by the 
owner under this subchapter, together with interest thereon as 
determined appropriate by the Secretary. 
"SEC. 1237B. DUTIES OF OWNERS. 
"Under the terms of an agreement entered into under this sub-
chapter, an owner and operator of the land that is subject to an 
easement under this subchapter shall agree to comply with the 
terms of the easement and related agreements and shall agree to the 
pennanent retirement of any existing cropland base and allotment 
history for such land under any program administered by the 
Secretary. 
"SEC. 1237C. DUTIES OF THE SECRETARY. 
"(a) IN GENERAL.—In return for the granting of an easement by 
an owner under this subchapter, the Secretary shall— 
"(1) share the cost of carrying out the establishment of con-
servation measures and practices, and the protection of the 
wetland functions and values, as set forth in the plan to the 
extent that the Secretary determines that cost sharing is appro-
priate and in the public interest; and 
"(2) provide necessary technical assistance to assist owners in 
compljdng with the terms and conditions of the easement and 
the plan. 
"(b) COST SHARE ASSISTANCE.—In making cost share payments 
under subsection (aXD, the Secretary shall pay the owner an 
amount that is not less than 50 percent but not more than 75 
percent of eligible costs with respect to an easement which is not 
permanent, and not less than 75 percent but not more than 100 
percent of eligible costs with respect to a permanent easement. 
"(c) ACXJEPTABIIJTY OF OFFERS.—In determining the acceptability 
of easement offers, the Secretary mar take into consideration— 
Records. 
16 use 3837b. 
16 use 3837c. 
Technical 
assistance. 
104 STAT. 3588 
PUBLIC LAW 101-624—NOV. 28, 1990 
"(1) the extent to which the purposes of the easement pro-
gram would be achieved on the land; 
"(2) the productivity of the land; and 
"(3) the on-farm and off-farm environmental threats if the 
land is used for the production of agricultural commodities. 
"(d) EASEMENT PRIORITY.—In carrying out this subchapter, to 
the extent practicable, taking into consideration costs and future 
agricultural and food needs, the Secretary shall give priority to 
obtaining permanent conservation easements before shorter term 
conservation easements and, in consultation with the Secretary of 
the Interior, shall place priority on acquiring easements based on 
the value of the easement for protecting and enhancing habitat for 
migratory birds and other wildlife. 
16 use 3837d. 
"SEC. 1237D. PAYMENTS. 
"(a) TIME OF PAYMENT.—The Secretary shall provide pa3mient for 
obligations incurred by the Secretary under this subchapter— 
"(1) with respect to any cost sharing obligation as soon as 
possible after the obligation is incurred; and 
"(2) with respect to any annual easement payment obligation 
incurred by the Secretary as soon as possible after October 1 of 
each calendar year. 
Regulations. 
"(b) PAYMENTS TO OTHERS.—If an owner who is entitled to a 
payment under this subchapter dies, becomes incompetent, is other-
wise unable to receive such pajmient, or is succeeded by another 
person who renders or completes the required performance, the 
Secretary shall make such pajrment, in accordance with regulations 
prescribed by the Secretary and without regard to any other provi-
sion of law, in such manner as the Secretary determines is fair and 
reasonable in light of all of the circumstances. 
"(c) PAYMENT LIMITATION.— 
"(1) IN GENERAL.—The total amount of easement payments 
made to a person under this subchapter for any year may not 
exceed $50,000, except such limitation shall not apply with 
respect to payments for perpetual easements. 
"(2) REGULATIONS.—The Secretary shall issue regulations 
prescribing such rules as the Secretary determines necessary to 
ensure a fair and reasonable application of the limitation con-
tained in this subsection. 
"(3) OTHER PAYMENTS.—Easement pajonents received by an 
owner shall be in addition to, and not affect, the total amount of 
payments that such owner is otherwise eligible to receive under 
this Act, the Food, Agriculture, Conservation, and Trade Act of 
1990, or the Agricultural Act of 1949 (7 U.S.C. 1421 et seq.). 
"(4) STATE WETLAND AND ENVIRONMENTAL ENHANCEMENT.— 
The provisions of this subsection that limit payments to any 
person, and section 1305(d) of the Agricultural Reconciliation 
Act of 1987 (7 U.S.C. 1308 note), shall not be applicable to 
payments received by a State, political subdivision, or agency 
thereof in connection with agreements entered into under a 
special wetland and environmental eeisement enhancement pro-
gram carried out by that entity that has been approved by the 
Secretary. The Secretary may enter into such agreements for 
pa5niients to States, political subdivisions, or agencies thereof 
that the Secretary determines will advance the purposes of this 
subchapter. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3589 
"(d) EXEMPTION FROM AUTOMATIC SEQUESTER.—Notwithstanding 
any other provision of law, no order issued under section 252 of the 
Balanced Budget and Emergency Deficit Control Act of 1985, as 
amended (2 U.S.C. 902) shall affect any pajnnent under this sub-
chapter. 
"SEC. 1237E. CHANGES IN OWNERSHIP; AGREEMENT MODIFICATION; 16 USC 3837E. 
TERMINATION. 
"(a) LIMITATIONS,—No easement shall be created under this sub-
chapter on land that has changed ownership in the preceding 12 
months unless— 
"(1) the new ownership was acquired by will or succession as a 
result of the death of the previous owner; 
"(2) the new ownership was acquired before January 1, 1990; 
or 
"(3) the Secretary determines that the land was acquired 
under circumstances that give adequate assurances that such 
land was not acquired for the purposes of placing it in the 
program established by this subchapter. 
"0^) MODIFICATION; TERMINATION.— 
"(1) MODIFICATION.—The Secretary may modify an easement 
acquired from, or a related agreement with, an owner under 
this subchapter if^ 
"(A) the current owner agrees to such modification; and 
"(B) the Secretary determines that such modification is 
desirable— 
"(i) to carry out this subchapter; 
"(ii) to facilitate the practical administration of this 
subchapter; or 
"(iii) to achieve such other goals as the Secretary 
determines are appropriate and consistent with this 
subchapter. 
"(2) TERMINATION.— 
"(A) IN GENERAL.—The Secretary may terminate an ease-
ment created with an owner under this subchapter i
f
— 
"(i) the current owner agrees to such termination; 
and 
"(ii) the Secretary determines that such termination 
would be in the public interest. 
"(B) NOTICE.—At least 90 days before taking any action to 
terminate under paragraph (A) all easements entered into 
under this subchapter, the Secretary shall provide written 
notice of such action to the Committee on Agriculture of 
the House of Representatives and the Committee on Agri-
culture, Nutrition, and Forestry of the Senate. 
"SEC. 1237F. ADMINISTRATION, AND FUNDING. 
16 USC 3837f. 
"(a) DELEGATION OF EASEMENT ADMINISTRATION.—The Secretary 
may delegate any of the easement management, monitoring, and 
enforcement responsibilities of the Secretary to Federal or State 
agencies that have the appropriate authority, expertise, and re-
sources necessary to carry out such delegated responsibilities. 
"(b) REGULATIONS.—Not later than 180 days after the date of 
enactment of this subchapter, the Secretary shall issue such regula-
tions as are necessary to carry out this subchapter.". 
104 STAT. 3590 
PUBLIC LAW 101-624—NOV. 28, 1990 
SEC. 1439. AGRICULTURAL WATER QUALITY INCENTIVES. 
Subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 
3831 et seq.) (as amended by section 1438) is further amended by 
adding after section 1237F the following new chapter: 
"CHAPTER 2—AGRICULTURAL WATER QUALITY 
INCENTIVES 
16 use 3838. 
"SEC. 1238. POLICY. 
"The policy of Congress is that water quality protection, including 
source reduction of agricultural pollutants, henceforth shall be an 
important goal of the programs and policies of the Department of 
Agriculture. Furthermore, agricultural producers in environ-
mentally sensitive areas should request assistance to develop and 
implement on-farm water quality protection plans in order to assist 
in compliance with State and Federal environmental laws and to 
enhance the environment. 
16 use 3838a. 
"SEC. 1238A. DEFINITIONS. 
"As used in this chapter— 
"(1) AGRICULTURAL WATER QUALITY PROTECTION PRACTICE.— 
The term 'sigricultural water queility protection practice' means 
a farm-level practice or a system of practices designed to protect 
water quality by mitigating or reducing the release of agricul-
tural pollutants, including nutrients, pesticides, animal waste, 
sediment, salts, biological contaminants, and other materials, 
into the environment. 
"(2) SOURCE REDUCTION.—The term 'source reduction' means 
minimizing the generation, emission, or discharge of agricul-
tural pollutants or wastes through the modification of agricul-
tural production systems and practices. 
16 use 3838b. 
"SEC. 1238B. AGRICULTURAL WATER QUALITY PROTECTION PROGRAM. 
"(a) INCENTIVES.— 
"(1) IN GENERAL.—During the 1991 through 1995 calendar 
years, the Secretary shall formulate and carry out a voluntary 
incentive program, in accordance with this chapter, through 
agreements to assist owners and operators of a farm in develop-
ing and implementing a water quality protection plan pursuant 
to this section. 
"(2) AGREEMENTS.—The Secretary shall enter into agreements 
of 3 to 5 years upon the request of owners and operators of 
farms in eligible areas but shall not enter into any such agree-
ments after December 31,1995. 
"(3) DUTIES OF OWNERS AND OPERATORS.—In order to receive 
annual incentive pa3mients, an owner or operator of a farm 
must agree— 
"(A) to implement a water quality protection plan ap-
proved by the Secretary subject to the agreement estab-
lished under this chapter; 
"(B) not to conduct any practices on the farm that would 
tend to defeat the purposes of this chapter; 
"(C) to comply with such additional provisions as the 
Secretary determines are desirable and are included in the 
agreement to carry out the water quality protection plan or 
to facilitate the practical administration of the program; 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3591 
"(D) on the violation of a term or condition of the agree-
ment at any time the owner or operator has control of the 
land to refund any incentive or cost share payment received 
with interest and forfeit any such future payments as 
determined by the Secretary; 
"(E) on the transfer of the right and interest of the owner 
or operator in land subject to the agreement, unless the 
transferee of such right and interest agrees with the Sec-
retary to assume all obligations of the agreement, to refund 
any such cost share and incentive pajonents received under 
this chapter, as determined by the Secretary; 
"(F) to accurately report nutrient, pesticide and animal 
waste materials usage rates on management areas for three 
previous years; and 
"(G) to supply production evidence, well test results, soil 
tests, tissue tests, nutrient application levels, pesticide ap-
plication levels, and animal waste material usage levels, to 
the Soil (Donservation Service or another designee of the 
Secretary including the local conservation district for each 
year of the agreement, as determined necessary by the 
Secretary. 
"(4) WETLAND OR WILDUFE HABITAT OPTIONS.— 
"(A) COST SHARE ASSISTANCE.—Owners and operators who 
voluntarily agree to develop and implement agricultural 
production practices, in concert with their water quality 
protection plan, that preserve and enhance wetland or 
wildlife habitat, shall also be eligible to receive cost share 
assistance for the implementation of such practices. The 
Secretary shall develop procedures for approving such agri-
cultural practices, as a part of and consistent with the 
objectives of the water quality protection plan, that qualify 
for cost share assistance. 
"(B) WETLAND PRESERVATION AND WILDUFE HABITAT 
IMPROVEMENT OPTIONS.— 
"(i) WETLAND PRESERVATION.—The Secretary shall 
encourgige owners and operators who choose the wet-
land preservation option to implement, improve £uid 
maintiain agricultural production practices, in concert 
with their water quality protection plan, that are de-
signed to preserve and enhance existing wetland. 
"(ii) WILDUFE HABITAT IMPROVEMENT.—The Secretary 
shall encourage owners and operators who choose the 
wildlife habitat improvement option to implement, im-
prove and maintain agricultural production practices, 
in concert with their water quality protection plan, 
that are designed to improve on-farm wildlife habitat, 
including the establishment of perennigd cover, the 
protection of riparian areas, wildlife corridors, and 
areas of critical habitat for endangered species. 
"(5) I^UTiES OF THE SECRETARY.—In return for an incentive 
agreement voluntarily entered into under this chapter, the 
Secretary shall Eissist the owner or operator in the protection 
and improvement of surface and groundwater quality and re-
lated resources by— 
"(A) providing an eligibility £issessment of the farming 
operation as a basis for developing the water quality protec-
tion plan and any options associated with such plan; 
104 STAT. 3592 
PUBLIC LAW 101-624—NOV. 28, 1990 
Technical 
assistance. 
"(B) providing technical assistance in developing and im-
plementing agricultural water quality protection plans; 
"(C) providing an annual incentive payment for develop-
ing and implementing agricultural production practices in 
accordance with an approved water quality protection plan 
submitted by the owner or operator; 
"(D) providing cost share assistance for implementing the 
wetland preservation or wildlife habitat improvement op-
tions; 
"(E) providing participants with information, education, 
and training to aid in implementation of a plan; and 
"(F) encouraging the owner or operator to obtain cost 
share assistance under other Federal, State, or locsd cost 
share programs. 
"(6) PAYMENTS.— 
"(A) TERMS.—Payments shsdl be made under this section 
for a period of not less than 3 nor more than 5 years, as 
determined appropriate by the Secretary, and as specified 
in the contract entered into under the program established 
under this chapter. 
"(B) AMOUNTS.— 
"(i) INCENTIVE.—In determining the amount of incen-
tive payment to be made to a participant under this 
chapter, the Secretary shall consider, among other 
things, the amount necessary on a per acre basis to 
encourage producers to participate, additional costs in-
curred by the producer, and the production values 
forgone, if any, in implementing the practices. 
*Xii) LIMITATION.—Cost share payments shall be 
made in an amount not to exceed 50 percent of the cost 
of the eligible practice. 
"(C) LIMITATIONS.—Pajnnents to a participant agreeing to 
implement a plan on acres devoted to the production of an 
agricultural commodity under this chapter shall not 
exceed— 
"(i) $3500 per person per year in the form of incentive 
payments; and 
(ii) not more than an additional $1500 per person 
per contract in the form of cost share assistance. 
"(D) MANNER.—The Secretary may make a lump sum 
payment to an owner or operator of the total incentive 
payments required under a contract entered into under this 
chapter, as reduced to present value, if such lump sum 
pa3nnent is necessary to enable the producer to pay the 
initial costs of implementing a practice required under such 
contract. 
"(E) OTHER PROGRAMS.—Pajmients received by an owner 
or operator under this chapter shall be in addition to, and 
not affect, the total amount of payments that such owner or 
operator is otherwise eligible to receive under this Act, the 
Food, Agriculture, Conservation, and Trade Act of 1990, or 
the Agricultural Act of 1949 (7 U.S.C. 1421 et seq.), except 
that pajmaents for a practice or practices shall not be made 
under this chapter if payments or assistance is provided for 
such practice under any other Federal program. 
"(7) MODIFICATIONS.—The Secretary may modify an agree-
ment entered into with a participant under this chapter if the 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3593 
participant agrees to such modification and the Secretary deter-
mines such modifications are desirable— 
"(A) to carry out this chapter; 
"(B) if natural causes prevent the implementation, 
improvement or maintenance of practices as required 
under such contract; 
"(C) if the contract cannot be carried out without eco-
nomic losses that threaten the viability of the farming 
operation; 
"(D) if the owner or operator and the Secretary agree on 
contract modifications that will not compromise the water 
quality goals and objectives in the existing contract and 
that will be no less effective or timely in achieving such 
goals and objectives than the existing contract; 
"(E) to facilitate the practical administration of this chap-
ter; or 
"(F) to achieve such other goals as the Secretary deter-
mines are appropriate, consistent with this chapter. 
"(8) TERMINATION.—The Secretary may terminate an agree-
ment entered into with a participant under this chapter i
f
— 
"(AXi) the producer agrees to such termination; or 
"(ii) the producer violates the terms and conditions of the 
agreement; and 
"(B) the Secretary determines that such termination 
would be in the public interest. 
"(9) REFUNDS.—The Secretary shall obtain refunds of incen-
tive and cost share pa5mients with interest, to the extent deter-
mined by the Secretary to be in the public interest, if an 
agreement is terminated or violated. 
"(10) BASE AND YIELD PROTECTION.—An owner or operator Regulations 
agreeing to implement an approved water quality protection 
plan pursuant to this chapter shall, by regulations established 
by the Secretary, receive program pa3rment yield and base 
protection on the farm during the agreement period. 
"(11) ACREAGE LEVELS.—The Secretary shall, to the extent 
practicable, seek to enter into agreements with participants to 
place into the program a total of 10 million acres during the 
1991 through 1995 calendar years. 
"(b) CONTENT OF PLANS.—Agricultural water quality protection 
plans should include as applicable— 
"(1) a description of the prevailing farm enterprises, cropping 
patterns, and cultural practices, and other information that 
may be relevant to protecting water quality on the farm; 
(2) a description of farm resources, including soil characteris-
tics, proximity to water bodies, and other relevant characteris-
tics of the farm related to water quality; 
_ 
"(3) to the extent practicable, specific, quantitative water 
quality protection goals and objectives that will minimize 
contamination or degradation of surface or ground water; 
"(4) water quality protection practices that will, if imple-
mented by a producer, assist such producer in complying with 
State and Federal environmental laws, and where appropriate, 
will complement conservation plans prepared for highly erod-
ible lands under section 1212 of the Food Security Act of 1985 
(16 U.S.C. 3812); 
"(5) the specific agricultural production practices that will be 
implemented, improved and maintained, including practices 
Government 
contracts. 
104 STAT. 3594 
PUBLIC LAW 101-624—NOV. 28, 1990 
that ensure continued farm productivity and profitability by 
promoting the efficient use of fertilizers, other crop nutrients, 
and pesticides, as well as management practices that are to be 
avoided, in order to carry out and achieve the water quality 
goals and objectives of the producer; 
"(6) to the extent practicable, water quality protection prac-
tices for safe storage, mixing and loading of pesticides and 
fertilizers, and storage and handling of animal waste; 
"(7) the timing and sequence for implementing such practices 
that will assist the producer in compljdng with State and 
Federal environmental laws, taking into consideration sched-
ules that may be established in such laws; 
"(8) information that will enable evaluation of the effective-
ness of the plan in protecting water quality; and 
"(9) recommendations of application rates and disposal meth-
ods of nutrients, pesticides, and animal waste materials as 
recommended by the Secretary. 
"(c) PLAN DEVELOPMENT.—The Secretary, acting through the 
Assistant Secretary for Natural Resources and Environment, shall 
establish a procedure to enable agricultural producers to develop 
agricultural water quality protection plans pursuant to this section. 
"(d) PROTECTION OF CONFIDENTIAUTY.—The Secretary shall protect 
the confidentiality of the information contained in these plsms to the 
extent confidentiality is provided under current law to information 
Public 
contained in conservation plans under section 1212. The Secretary 
information. 
shall provide notice to producers that information contained in the 
plans developed under this subsection will be available to the public 
upon request. 
"(e) ACCEPTANCE OF CONTRACTS.—The Secretary shall begin 
accepting contracts within one year after the date of enactment of 
this chapter. 
"(f) FEDERAL OR STATE PROVISIONS.—Acceptance of an ^reement 
under this section or receipt of assistance pursuant to section 1238D 
shall not be deemed to satisfy the requirements of any State or 
Federal law. 
16 u s e 3838c. 
"SEC. 1238C. ELIGIBLE LANDS. 
"(a) EuGiBLE LANDS.—Lands eligible for enrollment in the pro-
^ 
gram pursuant to section 1238B or for technical assistance pursuant 
to section 1238D shall include— 
"(1) areas that are not more than 1,000 feet from a public well 
unless a larger wellhead area is deemed desirable for inclusion 
by the Secretary in consultation with the Environmental 
Protection Agency and the State agency responsible for the 
State's operations under the Safe Drinking Water Act (42 U.S.C. 
300h-7); 
"(2) areas that are in shallow Karst topography areas where 
sinkholes convey runoff water directly into ground water; 
"(3) areas that are considered to be critical cropland areas 
within hydrologic units identified in a plan submitted by the 
State under section 319 of the Federal Water Pollution Control 
Act (33 U.S.C. 1329) as having priority problems that result 
from agricultural nonpoint sources of pollution; 
"(4) areas where agricultural nonpoint sources have been 
determined to pose a significant threat to habitat utilized by 
threatened and endangered species; 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3595 
"(5) areas recommended by State lead agencies for environ-
mental protection as designated by a Governor of a State; 
"(6) in consultation with the Secretary, other areas rec-
ommended by the Administrator of the Environmental Protec-
tion Agency or the Secretary of the Interior; 
"(1) lands that are not located within the designated or 
approved areas but that are located such that if permitted to 
continue to operate under existing management practices would 
defeat the purpose of the program as determined by the Sec-
retary; or 
"(8) areas contributing to identified water quality problems in 
areas designated by the Secretary. 
"(b) PRIORITY LANDS.—In accepting agreements pursuant to this 
section and providing assistance pursuant to section 1238D, the 
Secretary shall give priority to lands on which agricultursil produc-
tion has been determined to contribute to, or creates, the potential 
for failure to meet applicable water quality standards or the goals 
and requirements of Federal or State laws governing surface and 
ground water quality, in consultation with State officials having 
responsibility for monitoring and protecting water quality, the 
management of which provide the greatest public benefit as deter-
mined by the Secretary. 
"SEC. 1238D. TECHNICAL ASSISTANCE FOR WATER QUALITY PROTECTION. 16 USC 3838d. 
"(a) IN GENERAL.—Upon request, the Secretary shall provide tech-
nical assistance to agricultural producers on eligible lands to assist 
such producers in developing and implementing agricultural water 
quality protection plans. 
"(b) 
FIELD OFFICE TECHNICAL GUIDANCE FOR WATER QUALITY 
PROTECTION.— 
"(1) DEVELOPMENT.—The Secretary shall develop guidance 
materials describing a process to assist agricultural producers 
in preparing and implementing on-farm agricultural water 
quality protection plans necessary to assist in compljdng with 
State and Federal environmental laws, and to implement the 
agricultural water quality protection policy established by this 
chapter. 
"(2) CONTENT.—The guidance materials required under this 
subsection shall reflect local agronomic, economic and ecological 
conditions to the extent practicable, and include and describe in 
detail— 
"(A) procedures to identify potential sources of pollution 
on a farm; 
"(B) to the extent practicable, a rgmge of water quality 
protection practices, and their economic cost and benefit, 
that is suitable to local ecological characteristics and 
prevailing farm enterprises and that complement conserva-
tion plans prepared for highly erodible lands under section 
1212 of the Food Security Act of 1985 (16 U.S.C. 3812); 
"(C) storage, mixing, and loading practices for on-farm 
pesticide and fertilizer use to protect water quality; 
"(D) information regarding relevant State and Federal 
environmental laws that may impact upon the producer; 
"(E) criteria to evaluate the effectiveness of on-farm plans 
in protecting water quality and provide aggregate data to 
aid in evaluating compligmce with State and Federal 
environmental laws; and 
104 STAT. 3596 
PUBLIC LAW 101-624—NOV. 28, 1990 
"(F) means to evaluate the economic costs and benefits of 
agricultural water quality protection practices, including 
source reduction practices. 
"(3) DEADUNE.—Local guidance materials shall be developed 
no later than two years after the date of enactment of this 
chapter and up-dated periodically, but not less than every two 
years. 
"(4) CONSULTATION.—The Secretary shall consult with the 
Administrator of the Environmental Protection Agency, the 
Secretary of the Interior, and relevant State agencies in devel-
oping guidance materials under this section to ensure that such 
materials contain accurate and up-to-date technical information 
on practices designed to protect water quedity. 
Technical 
"(c) PERSONNEL.—The Secretary shall designate the Soil Conserva-
assistance. 
^JQ^ Service as the lead agency for purposes of providing technical 
assistance in connection with implementing this chapter, and shall 
assign such personnel from the Extension Service, Agricultural 
Research Service, and other agencies as are necessary to fulfill the 
purposes of this chapter. The Secretary may request the services of 
the State water quality agencies. State fish and wildlife agencies. 
State forestry agencies, or any other source deemed appropriate to 
assist in providing the technical assistance necessary for the devel-
opment and implementation of the water quality protection plans. 
"(d) LIMITATION OF LIABILITY.—No person shall be permitted to 
bring or pursue any claim or action against any official or entity 
based upon or resulting from any technical assistance provided to 
assist in complying with State or Federal environmental laws under 
subsection (bXD of this section. 
16USC3838e. 
"SEC.1238E. DEMONSTRATION AND PILOT PROGRAMS. 
"(a) DEMONSTRATION AND MODEL FARM PROGRAMS.—To the extent 
practicable and consistent with the requirements of the program 
established under this chapter and the priority described in section 
1238C(b), the Secretary may enter into contracts under this chapter 
with owners and operators to facilitate the participation by such 
owners or operators in demonstration or model farm programs that 
are sponsored by governmental or private nonprofit entities and are 
designed to provide education on, disseminate information about, 
and demonstrate the practical application of ^ricultural production 
practices that reduce the potential for contamination or degradation 
of surface water or ground water while emphasizing practices that 
enhance profitability and productivity. 
"(b) PILOT PROGRAMS.—To complement and enhance the effective-
ness of the program established under this chapter, the Secretary 
may establish pilot programs, for implementation in areas deter-
mined to be priority areas under section 1238C(b), that shall be 
designed to provide sissistance to address a wide range of farming 
operations and production conditions that enhance the efficient use 
of farm inputs and reduce waste.". 
16 use 3838f. 
"SEC. 1238F. REPORT TO CONGRESS. 
"Not later than September 30, 1992, the Secretary shall provide to 
the Committee on Agriculture of the House of Representatives and 
the Committee on Agriculture, Nutrition, and Forestry of the 
Senate an interim report describing the degree of participation in 
the planning process and program established in this subtitle, 
including the number of plans that have been prepared, information 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3597 
on the number of plans that are in implementation, including the 
number and acreage of farms engaged in pleinning by type of 
environmentally sensitive area, information relevant for evaluating 
the effectiveness of agricultural water quality plans in protecting 
water quality, and other information pertinent to implementation of 
this chapter. A final report shall be submitted no later than Septem-
ber 30,1994.". 
SEC. 1440. ENVIRONMENTAL EASEMENT PROGRAM. 
Subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 
3831 et seq.) (as amended by section 1439) is further amended by 
adding after section 1238F the following new chapter: 
"CHAPTER 3—ENVIRONMENTAL EASEMENT PROGRAM 
"SEC. 1239. ENVIRONMENTAL EASEMENT PROGRAM. 
16 USC 3839. 
"(a) EsTABUSHMENT.—The Secretary shall, during the 1991 
through 1995 calendar years, formulate and carry out an environ-
mental easement program (hereeifter in this chapter referred to as 
the 'easement program') in accordance with this chapter, through 
the acquisition of permanent easements or easements for the maxi-
mum term permitted under applicable State law from willing 
owners of eligible farms or ranches in order to ensure the continued 
long-term protection of environmentally sensitive lands or reduction 
in the degradation of water quality on such farms or ranches 
through the continued conservation and improvement of soil and 
water resources. 
"(b) ELIGIBILITY; TERMINATION.— 
"(1) IN GENERAL.—The Secretary may acquire easements 
under this section on land placed in the conservation reserve 
under this subtitle (other than such land that is likely to 
continue to remain out of production and that does not pose an 
off-farm environmental threat), land under the Water Bank Act 
(16 U.S.C. 1301), or other cropland that— 
"(A) contains riparian corridors, 
"(B) is an area of critical habitat for wildlife, especially 
threatened or endangered species; or 
"(C) contains other environmentally sensitive areas, as 
determined by the Secretary, that would prevent a pro-
ducer from complying with other Federal, State, or local 
environmental goals if commodities were to be produced on 
such land. 
"(2) INELIGIBLE LAND.—The Secretary may not acquire ease-
ments on— 
"(A) land that contains timber stands established under 
the conservation reserve under subtitle D; or 
"(B) pasture land established to trees under the conserva-
tion reserve under subtitle D. 
"(3) TERMINATION OF EXISTING CONTRACT.—The Secretary may 
terminate or modify any existing contract entered into under 
section 1231(a) if eligible land that is subject to such contract is 
transferred into the program established by this chapter. 
"SEC. 1239A. DUTIES OF OWNERS; COMPONENTS OF PLAN. 
16 USC 3839a. 
"(a) DUTIES OF OWNERS.— 
"(1) PLAN.—In conjunction with the creation of an easement 
on any lands under this chapter, the owner of the farm or ranch 
104 STAT. 3598 
PUBLIC LAW 101-624—NOV. 28, 1990 
wherein such lands are located must agree to implement a 
natural resource conservation management plan under subsec-
tion (b) approved by the Secretary in consultation with the 
Secretary of the Interior. 
"(2) AGREEMENT.—In return for the creation of an easement 
on any lands under this chapter, the owner of the farm or ranch 
wherein such lands are located must agree to the following: 
"(A) To the creation and recordation of an appropriate 
deed restriction in accordance with applicable State law to 
reflect the easement agreed to under this chapter with 
respect to such lands. 
(B) To provide a written statement of consent to such 
easement signed by those holding a security interest in the 
land. 
"(C) To comply Avith such additional provisions as the 
Secretary determines are desirable and are included in the 
easement to carry out this chapter or to facilitate the 
practical administration thereof. 
Forests and 
"(D) To Specify the location of any timber harvesting on 
Nute*^ P™^"*^*^' 
land subject to the easement. Harvesting and commercial 
sales of Christmas trees and nuts shall be prohibited on 
such land, except that no such easement or related agree-
ment shall prohibit activities consistent with customary 
forestry practices, such as pruning, thinning, or tree stand 
improvement on lands converted to forestry uses. 
(E) To limit the production of any agricultural commod-
ity on such lands only to production for the benefit of 
wildlife. 
"(F) Not to conduct any harvesting or grazing, nor 
otherwise make commercial use of the forage, on land that 
is subject to the easement unless specifically provided for in 
the easement or related agreement. 
"(G) Not to adopt any other practice that would tend to 
defeat the purposes of this chapter, as determined by the 
Secretary, 
"(3) VIOLATION.—On the violation of the terms or conditions 
of the easement or related agreement entered into under this 
section, the easement shall remain in force and the Secretary 
may require the owner to refund all or part of any pajnmente 
received by the owner under this chapter, together with interest 
thereon as determined appropriate by the Secretary. 
"(b) COMPONENTS OF PLAN.—The natural resource conservation 
management plan referred to in subsection (aXD (hereafter referred 
to as the 'plan)— 
"(1) shall set forth— 
"(A) the conservation measures and practices to be car-
ried out by the owner of the land subject to the easement; 
and 
"(B) the commercial use, if any, to be permitted on such 
land during the term of the easement; and 
"(2) shall provide for the permanent retirement of any exist-
ing cropland base and allotment history for such land under any 
program administered by the Secretary. 
16 use 3839b. 
"SEC. 1239B. DUTIES OF THE SECRETARY. 
"In return for the granting of an easement by an owner under this 
chapter, the Secretary shall— 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3599 
"(1) share the cost of carrying out the establishment of con-
servation measures and practices set forth in the plsin for which 
the Secretary determines that cost sharing is appropriate and in 
the public interest; 
"(2) pay for a period not to exceed 10 years annual easement 
payments in the aggregate not to exceed the lesser o
f
— 
"(A) $250,000; or 
"(B) the difference in the value of the land with and 
without an easement; 
"(3) provide necessary technical assistance to assist owners in 
compljdng with the terms and conditions of the easement and 
the plan; and 
"(4) permit the land to be used for wildlife activities, including 
hunting and fishing, if such use is permitted by the owner. 
"SEC. 1239C. PAYMENTS. 
"(a) TIME OF PAYMENT.—The Secretary shall provide payment for 
obligations incurred by the Secretary under this chapter— 
"(1) vidth respect to any cost sharing obligation as soon as 
possible after the obligation is incurred; and 
"(2) with respect to any annual easement payment obligation 
incurred by the Secretary as soon £is possible after October 1 of 
each calendar year. 
"Ot)) COST SHARING PAYMENTS.—In making cost sharing payments 
to owners under this chapter, the Secretary may pay up to 100 
percent of the cost of establishing conservation measures and prac-
tices pursuant to this chapter. 
"(c) EASEMENT PAYMENTS; ACCEPTABILITY OF OFFERS.— 
"(1) DETERMINATION OF AMOUNT.—The Secretary shall deter-
mine the smiount payable to owners in the form of easement 
pajonents under this chapter, and in making such determina-
tion may consider, among other things, the amount necessary to 
encourage owners to participate in the easement program. 
"(2) ACCEPTABILITY OF OFFERS.—In determining the accept-
ability of easement offers, the Secretary may take into consider-
ation— 
"(A) the extent to which the purposes of the easement 
program would be achieved on the land; 
"(B) the productivity of the land; and 
"(C) the on-farm and off-farm environmental threats if 
the land is used for the production of agricultural commod-
ities. 
"(d) FORM OF PAYMENT.—Except as otherwise provided in this 
section, pa3mients under this chapter— 
"(1) shall be made in cash in such amount and at such time as 
is agreed on and specified in the easement or related agreement; 
and 
"(2) may be made in advance of a determination of perform-
ance. 
"(e) PAYMENTS TO OTHERS.—If an owner who is entitled to a 
pa5nnent under this chapter dies, becomes incompetent, is otherwise 
unable to receive such payment, or is succeeded by another person 
who renders or completes the required performance, the Secretary 
shall make such pa5Tnent, in accordance with regulations prescribed 
by the Secretary and without regard to any other provision of law, 
in such manner as the Secretary determines is fair and reasonable 
in light of all of the circumstances. 
Technical 
assistance. 
Hunting. 
Fishing. 
16 u s e 3839c. 
104 STAT. 3600 
PUBLIC LAW 101-624—NOV. 28, 1990 
"(f) PAYMENT LIMITATION.— 
"(1) IN GENERAL.—The total amount of easement pajmients 
made to a person under this chapter for any year may not 
exceed $50,000. 
"(2) REGULATIONS.—The Secretary shall issue regulations 
prescribing such rules as the Secretary determines necessary to 
ensure a fair and reasonable application of the limitation con-
tained in this subsection. 
"(3) OTHER PAYMENTS.—Easement payments received by an 
owner shall be in addition to, and not affect, the total amount of 
payments that such owner is otherwise eligible to receive under 
this Act, the Food, Agriculture, Conservation, and Trade Act of 
1990, or the Agricultural Act of 1949 (7 U.S.C. 1421 et seq.). 
"(4) STATE ENVIRONMENTAL ENHANCEMENT.—The provisions of 
this subsection that limit pajmients to any person, and section 
1305(d) of the Agricultural Reconciliation Act of 1987 (7 U.S.C. 
1308 note), shall not be applicable to pa5ntnents received by a 
State, political subdivision, or sigency thereof in connection with 
agreements entered into under an environmental easement 
enhancement program carried out by that entity that has been 
approved by the Secretary. The Secretary may enter into such 
agreements for pa3anents to States, political subdivisions, or 
agencies thereof that the Secretary determines will advance the 
purposes of this chapter. 
"(g) EXEMPTION FROM AUTOMATIC SEQUESTER.—Notwithstanding 
any other provision of law, no order issued under section 252 of the 
Balanced Budget and Emergency Deficit Control Act of 1985, as 
amended (2 U.S.C. 902) shall affect any pajrment under this chapter. 
16USC3839d. 
"SEC. 1239D. CHANGES IN OWNERSHIP; MODIFICATION OF EASEMENT. 
"(a) LIMITATIONS.—No easement shall be created under this chap-
ter on land that has changed ownership in the preceding 12 months 
unless— 
"(1) the new ownership was acquired by will or succession as a 
result of the death of the previous owner; 
"(2) the new ownership was acquired before January 1, 1990; 
or 
"(3) the Secretary determines that the land was acquired 
under circumstances that give adequate assurances that such 
land was not acquired for the purposes of placing it in the 
program established by this chapter. 
"(b) MODIFICATION; TERMINATION.— 
"(1) MODIFICATION.—The Secretary may modify an easement 
acquired from, or a related agreement with, an owner under 
this chapter if— 
"(A) the current owner of the land agrees to such modi-
fication; £Uld 
"(B) the Secretary determines that such modification is 
desirable— 
"(i) to carry out this chapter; 
"(ii) to facilitate the practical administration of this 
chapter; or 
"(iii) to achieve such other goals as the Secretary 
determines are appropriate and consistent with this 
chapter. 
"(2) TERMINATION.— 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3601 
"(A) IN GENERAL.—The Secretary may terminate an ease-
ment created with an owner under this chapter i
f
— 
"(i) the current owner of the land agrees to such 
termination; and 
"(ii) the Secretary determines that such termination 
would be in the public interest. 
"(B) NOTICE.—At least 90 days before taking any action to 
terminate under subparagraph (A) all easements entered 
into under this chapter, the Secretary shall provide written 
notice of such action to the C!ommittee on Agriculture of 
the House of Representatives and the Committee on Agri-
culture, Nutrition, and Forestry of the Senate.". 
SEC. 1441. TREE PLANTING INITIATIVE. 
(a) TREE PLANTING INITIATIVE.—Title XII of the Food Security Act 
of 1985 (16 U.S.C. 3801 et seq.) is amended by adding at the end of 
subtitle F the following new section: 
"SEC. 1256. TREE PLANTING INITIATIVE. 
16 USC 2101 
"(a) 
MAINTENANCE, AFFORESTATION, AND REFORESTATION OF " 
" 
FOREST LANDS.— 
"(1) POLICY.—It is the policy of the United States to— 
"(A) promote the retention and management of lands 
currently in forest cover as forested lands; 
"(B) provide for the reforestation of Federal, State, and 
private nonindustrial forest lands following timber harvest 
or loss of cover due to fire, insect damage, disease or 
dsunaging weather; 
"(C) encourage the reforestation of previously forested 
lands and the afforestation of marginal agricultural lands; 
and 
"(D) promote the planting of trees £uid the proper 
management of existing forest leinds to reduce soil erosion, 
improve water quality, enhance fish and wildlife habitat, 
and provide for the sustained production of the commodity 
and noncommodity resources that these lands can provide 
to meet the Nation's needs. 
"(2) IMPLEMENTATION OF POUCY.—The Secretary is encour-
aged to use the following programs to accomplish the policy 
identified in subsection (aXl): 
"(A) The conservation reserve established under sub-
chapter B of chapter 1. 
"(B) The agricultural conservation program authorized 
by sections 7 through 15, 16(a), 16(f), and 17 of the Soil 
Conservation and Domestic Allotment Act (16 U.S.C. 590g 
through 590o, 590p(a), 590p(f), and 590(g) and sections 1001 
through 1008 and 1010 of the Agricultural Act of 1970 (16 
U.S.C. 1501 through 1508 and 1510). 
"(C) The Cooperative Forestry Assistance Act of 1978 (16 
U.S.C. 2103). 
"(D) The provisions of title XII of the Food, Agriculture, 
Conservation, and Trade Act of 1990. 
"(b) AGREEMENTS WITH STATE FORESTRY AGENCIES.—The Sec-
retary shall encourage owners and operators of cropland who enter 
into agreements in accordance with this section to enlist the co-
operative assistance of the State Forester or equivalent State official 
in obtaining technical and financial assistance for tree planting and 
104 STAT. 3602 
PUBLIC LAW 101-624—NOV. 28, 1990 
maintenance activities in accordance with the provisions of title XII 
of the Food, Agriculture, Conservation, and Trade Act of 1990.". 
SEC. 1442. ADMINISTRATION OF CONSERVATION PROGRAMS. 
Section 1243 of the Food Security Act of 1985 (16 U.S.C. 3843) is 
amended by adding at the end the following new subsections: 
"(d) In making determinations under this title and in conducting 
appeals from any determination made under this title, the Secretary 
shall act as expeditiously as possible but shall provide adequate 
safeguards to protect the interests of the persons involved in such 
determination. 
Records. 
"(e) The Secretary shall maintain data concerning the number 
Eind status of appeals pending in excess of 120 days or resolved under 
this title. 
"(fKD The Secretary shall not enroll more than a total of 25 
percent of the cropland in any county into the Environmental 
Conservation Acreage Reserve Program under chapter 1 and the 
Environmental Easement Program under chapter 3, and not more 
than 10 percent of such cropland may be subject to an easement 
acquired under those chapters. The Secretary may exceed these 
limitations in a county to the extent that the Secretary determines 
that— 
"(A) such action would not adversely affect the local economy 
of such county; and 
"(B) producers in such county are having difficulties comply-
ing with conservation plans or other environmental require-
ments. 
"(2) The limitations established under this subsection shall not 
apply to cropland that is subject to an easement under chapter 1 or 
chapter 3 that is used for the establishment of shelterbelts and 
windbreaks. 
"(3) In making a determination under this subsection, the Sec-
retary shall not require the written consent of a member of 
Congress.". 
SEC. 1443. AUTHORIZATION OF APPROPRIATIONS. 
Section 1245 of the Food Security Act of 1985 (16 U.S.C. 3845) is 
amended to read as follows: 
"SEC. 1245. AUTHORIZATION OF APPROPRIATIONS. 
"(a) ENVIRONMENTAL CONSERVATION ACREAGE RESERVE PROGRAM 
AND WATER QUAUTY INCENTIVE PROGRAM.—There is authorized to 
be appropriated without fiscal year limitation such sums as may be 
necessary to carry out chapters 1 and 2 of subtitle D. Amounts 
available to carry out subtitle D before the date of enactment of this 
section shall remain available to carry out such chapters. 
"(b) OTHER CONSERVATION MATTERS.—In addition to subsection (a), 
there is authorized to be appropriated without fiscal year limitation 
such sums as may be necessary to carry out subtitles (A) through 
(G), other than chapters 1 and 2 of subtitle D.". 
SEC. 1444. MONITORING AND EVALUATION. 
Subtitle E of title XII of the Food Security Act of 1985 (16 U.S.C. 
3841 et seq.) is further amended by adding after section 1245 the 
following new section: 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3603 
"SEC. 1246. MONITORING AND EVALUATION. 
16 USC 3846. 
"(a) IN GENERAL.—Not later than June 30, 1993, the Secretary Reports. 
shall prepare and submit, to the Committee on Agriculture of the 
House of Representatives and the Committee on Agriculture, Nutri-
tion, and Forestry of the Senate, a comprehensive report that 
evaluates, in accordance with subsection Ot)), the programs and 
policies established and operated under this title. 
"Qo) REQUIREMENTS.—In conducting the evaluations required 
under subsection (a), the Secretary shall— 
"(1) assess the progress made toward the national objective of 
nondegradation of the soil resources through the implementa-
tion of the relevant provisions of this title, identify obstacles to 
the attainment of such goal, and recommend ways in which to 
overcome such obstacles; 
"(2) perform on-site evsduations of 5 percent, or such reason-
able amount as necessary to produce a statistically valid survey, 
of all affected acreage of— 
"(A) conservation practices on highly erodible lands; 
"(B) estimates of erosion reductions that may result from 
the implementation of conservation plans; and 
"(C) the technical adequacy and feasibility of such plans; 
"(3) collect data concerning the social and economic impacts, 
violations, appeals, and such other matters under this title as 
the Secretary determines to be necessary to assess the overall 
impact of this title, which data collection shall not impose an 
additional recordkeeping or reporting requirement on the pro-
ducer; and 
"(4) assess the contribution toward the national objectives of 
wetlands preservation, wildlife and waterfowl habitat improve-
ment, and water quality improvement through the implementa-
tion of the relevant provisions of this title, identify obstacles to 
furthering progress toward such objectives, and recommend 
ways in which to overcome such obstacles.". 
SEC. 1445. ASSISTANCE FOR CONTROL OF THE SPREAD OF WEEDS AND 
PESTS. 
Subtitle E of title XII of the Food Security Act of 1985 (16 U.S.C. 
3841 et seq.) (as amended by section 1444) is further amended by 
inserting after section 1246 the following new section: 
"SEC. 1247, ASSISTANCE FOR CONTROL OF THE SPREAD OF WEEDS AND 16 USC 3847. 
PESTS. 
"(a) IN GENERAL.—The Secretary, in consultation with State 
experiment stations, the Administrator of the Extension Service, the 
Chief of the Soil Conservation Service, and State pest and weed 
control boards, shall make available to owners and operators of land 
that is subject to a contract under subtitle D, weed and pest control 
technical information and materials that— 
"(1) address common weed and pest problems and programs to 
control weeds and pests found on acreage enrolled in the con-
servation reserve; and 
"(2) are otherwise consistent with maintaining the conserva-
tion and environmental objectives of the conservation reserve. 
"(b) CONSERVATION MEASURE.—At the Secretary's discretion, the 
control of insect pests on conservation reserve acreage that is most 
likely to incur a crop pest infestation that adversely affects 
104 STAT. 3604 
PUBLIC LAW 101-624—NOV. 28, 1990 
surrounding commercial land may be considered a conservation 
measure or practice for the purposes of subsection 1234(b).". 
SEC. 1446. STATE TECHNICAL COMMITTEE. 
Title XII of the Food Security Act of 1985 (16 U.S.C. 3801 et seq.) is 
amended by adding at the end the following new subtitle: 
"Subtitle G—State Technical Committees 
16 use 3861. 
"SEC. 1261. ESTABLISHMENT. 
"(a) IN GENERAL.—The Secretary shall establish in each State a 
technical committee to assist the Secretary in the technical consid-
erations relating to implementation of the conservation provisions 
under this title. 
"(b) STANDARDS.—Not later than 180 days after enactment of this 
section, the Secretary shall develop standards to be used by the 
State technical committee in the development of technical guide-
lines under section 1262(b) for the implementation of the conserva-
tion provisions of this title. 
"(c) COMPOSITION.—Each State technical committee established 
under subsection (a) shall be composed of professional resource 
managers that represent a variety of disciplines in the soil, water, 
wetland, and wildlife sciences. Such committee shall include such 
representatives as may serve from among— 
"(1) the Soil Conservation Service; 
"(2) the Agricultural Stabilization and Conservation Service; 
"(3) the Forest Service; 
"(4) the Extension Service; 
"(5) the Farmers Home Administration; 
"(6) the Fish and Wildlife Service; 
"(7) State departments and agencies which the Secretary 
deems appropriate, including: 
"(A) the State fish and wildlife agency; 
"(B) the State forester or equivalent State official; 
"(C) the State water resources agency; 
"(D) the State department of agriculture; and 
"(E) the State association of soil and water conservation 
districts; and 
"(8) other agency personnel with expertise in soil, water, 
wetland, and wildlife management as the Secretary determines 
appropriate. 
16 use 3862. 
"SEC. 1262. RESPONSIBILITIES. 
"(a) IN GENERAL.—Each Committee established under section 1261 
shall meet 
regularly to provide information, 
analysis, 
and 
recommendations to appropriate officials of the Department of Agri-
culture who are charged with implementing the conservation 
provisions of this title. Such information, analysis, and rec-
ommendations shall be provided in a manner that will assist the 
Department of Agriculture in determining matters of fact, technical 
merit, or scientific question. Data, analysis, and recommendations 
shall be provided in writing and shall reflect the best professional 
information and judgment of the Committee. The Secretary shall 
coordinate activities conducted under this section with those con-
ducted under section 1628 of the Food, Agriculture, Conservation, 
and Trade Act of 1990. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3605 
"(b) WETLAND AND WiLDUFE HABITAT PROTECTION GUIDELINES.— 
"(1) DEVELOPMENT OF TECHNICAL GUIDES.—Not later than one 
year after the date of enactment of this section each State 
technical committee shall develop technical guides for the im-
plementation of the wetland preservation £ind wildlife habitat 
improvement options of the agricultural water quality protec-
tion program under section 1238B. 
"(2) CONTENT OF GUIDES.— 
"(A) IN GENERAL.—The technical guides required under 
this subsection shall include detailed information on the 
selection of crops and crop-plant varieties, cover crops, 
rotation practices, tillage systems, nutrient management, 
biological control practices (including biologically intensive 
integrated pest management practices), soil, water, and 
natural resource conservation, and other practices useful in 
developing practices pursuant to such option. 
"(B) STANDARDS AND INSTRUCTIONS.—The technical guides 
required under subsection (a) shall provide standards and 
practical instructions for implementation of wetland protec-
tion £ind wildlife habitat improvement practices based on 
existing scientific and technical knowledge. 
"(C) CONTRACTS.—The Secretary may enter into contracts 
to assist in the development and periodic revision of the 
technical guides described in this subsection. 
"(c) OTHER DUTIES.—Each technical committee shall provide Technical 
assistance and offer recommendations with respect to the technical assistance. 
aspects of— 
"(1) wetland protection, restoration, gmd mitigation require-
ments; 
"(2) criteria to be used in evaluating bids for enrollment of 
environmentally-sensitive lands in the conservation reserve pro-
gram; 
"(3) guidelines for haying or grazing and the control of weeds 
to protect nesting wildlife on set-aside acreage; 
"(4) highly erodible lands exemptions and appeals; 
"(5) wetland and conservation compliance exemptions and 
appeals; 
"(6) addressing common weed and pest problems and pro-
grams to control weeds and pests found on acreage enrolled in 
the conservation reserve program; 
"(7) guidelines for planting perennial cover for water quality 
and wildlife habitat improvement on set-aside lands; and 
"(8) other matters determined appropriate by the Secretary. 
"(d) AUTHORITY.—Each Committee established under section 1261 
is advisory and shall have no implementation or enforcement 
authority. However, the Secretary shall give strong consideration to 
the recommendations of such Committees in administering the 
programs under this title, and to the factual, technical, or scientific 
findings and recommendations under the Committee's responsibil-
ity.". 
SEC.1447. TECHNICAL AND CONFORMING AMENDMENTS. 
(a) FOOD SECURITY ACT.—Subtitle D of title XII of such Act (16 
U.S.C. 3831 et seq.) as such subtitle existed prior to the date of 
enactment of this Act, is amended by strilang the term "this 
16 USC 
subtitle" each place that such term occurs £ind inserting "this 3831-3836. 
subchapter". 
104 STAT. 3606 
PUBLIC LAW 101-624—NOV. 28, 1990 
(b) TABLE OF CONTENTS.— 
(1) WETLAND CONSERVATION.—Section 2 of the Food Security 
99 Stat. 1354. 
Act of 1985 is amended— 
(A) by striking the item relating to section 1222 and 
insert the following: 
"Sec. 1222. Delineation of wetlands; exemptions."; 
(B) by inserting after the item relating to section 1223 the 
following new item: 
"Sec. 1224. Fairness of compliance."; 
(2) CONSERVATION RESERVE.—Section 2 of such Act is amended 
by striking the heading and the items relating to subtitle D of 
title XII and inserting the following: 
"Subtitle D—Agricultural Resources Conservation Program" 
"CHAPTER 1—ENVIRONMENTAL CONSERVATION ACREAGE RESERVE PROGRAM 
"Subchapter A—General Provisions 
"Sec. 1230. Environmental Conservation Acreage Reserve Program. 
"Subchapter B—Conservation Reserve 
"Sec. 1231. Conservation reserve. 
"Sec. 1232. Duties of owners and operators. 
"Sec. 1233. Duties of the Secretary. 
"Sec. 1234. Payments. 
"Sec. 1235. Contracts. 
"Sec. 1235A. Conversion of land subject to contract to other conserving uses. 
"Sec. 1236. Base history. 
"Subchapter C—Wetlands Reserve Program 
"Sec. 1237. Wetlands Reserve Program. 
"Sec. 1237A. Easements. 
"Sec. 1237B. Duties of owners. 
"Sec. 1237C. Duties of the Secretary. 
"Sec. 1237D. Payments. 
"Sec. 1237E. Changes in ownership; agreement modification; termination. 
"Sec. 1237F. Administration, and funding. 
"CHAPTER 2—AGRICULTURAL WATER QUALITY INCENTIVES 
"Sec. 1238. Policy. 
"Sec. 1238A. Definitions. 
"Sec. 1238B. Agricultural Water Quality Protection Program. 
"Sec. 1238C. Eligible lands. 
"Sec. 1238D. Technical assistance for water quality protection. 
"Sec. 1238E. Demonstration and pilot programs. 
"Sec. 1238F. Report to Congress. 
"CHAPTER 3—ENVIRONMENTAL EASEMENT PROGRAM 
"Sec. 1239. Environmental Easement Program. 
"Sec. 1239A. Duties of owners; components of plan. 
"Sec. 1239B. Duties of the Secretary. 
"Sec. 1239C. Payments. 
"Sec. 1239D. Changes in ownership; modification of easement.". 
(3) ADMINISTRATION.—Section 2 of such Act is 
further 
amended by striking the item relating to section 1245 and 
inserting the following new items: 
"Sec. 1245. Authorization of appropriations. 
"Sec. 1246. Monitoring and evaluation. 
"Sec. 1247. Assistance for control of the spread of weeds and pests.". 
(4) TREE PLANTING INITIATIVE.—Section 2 of such Act is fur-
ther amended by inserting after the item relating to section 
1254 the following new item: 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3607 
"Sec. 1256. Tree planting initiative.". 
(5) STATE TECHNICAL COMMITTEES.—Section 2 of such Act is 
further amended by inserting after the items relating to subtitle 
F of title XII the following new items: 
"SUBTITLE G—STATE TECHNICAL COMMITTEES 
"Sec. 1261. Establishment. 
"Sec. 1262. Responsibilities.". 
Subtitle D—OTHER CONSERVATION 
MEASURES 
SEC. 1451. INTEGRATED FARM MANAGEMENT PROGRAM OPTION. 
7 USC 5822. 
(a) EsTABUSHMENT.—The Secretary of Agriculture (hereafter in Regulations. 
this section referred to as the "Secretary ) shall, by regulation, 
establish a voluntary program, to be known as the "Integrated Farm 
Management Program Option" (hereafter referred to in this section 
as the "program'), designed to sissist producers of agricultural 
commodities in adopting integrated, multiyear, site-specific farm 
management plans by reducing farm program barriers to resource 
stewardship practices and systems. 
(b) DEFINITIONS.— 
(1) IN GENERAL.—For purposes of this section— 
(A) The term "resource-conserving crop" means legumes, 
legume-grass 
mixtures, 
legume-small 
grain 
mixtures, 
legume-grass-small grain mixtures, and alternative crops. 
(B) The term "resource-conserving crop rotation" means 
a crop rotation that includes at least one resource-conserv-
ing crop and that reduces erosion, maintains or improves 
soil fertility and tilth, interrupts pest cycles, or conserves 
water. 
(C) The term "farming operations and practices" includes 
the integration of crops and crop-plant variety selection, 
rotation practices, tillage systems, soil conserving and soil 
building practices, nutrient management strategies, bio-
logical control and integrated pest management strategies, 
livestock production and management systems, animal 
waste management systems, water and energy conservation 
measures, and health and safety considerations. 
(D) The term "integrated farm management plan" means 
a comprehensive, multiyear, site-specific plan that meets 
the requirements of subsection (e). 
(2) CROPS.—For purposes of paragraph (IXA)— 
(A) The term "grass" means perennial grasses commonly 
used for hajdng or grazing. 
(B) The term "legume means forage legumes (such as 
alfEilfa or clover) or any legume grown for use as a forage or 
green manure, but not including any bean crop from which 
the seeds are harvested. 
(C) The term "small grain" shall not include malting 
barley or wheat, except for wheat interplanted with other 
small grain crops for nonhuman consumption. 
(D) The term "alternative crops" means experimental 
and industrial crops grown in arid and semiarid regions 
that conserve soil and water. 
104 STAT. 3608 
PUBLIC LAW 101-624—NOV. 28, 1990 
(c) EuGiBiLiTY.—To be eligible to participate in the program estab-
lished by this section, a producer must— 
(1) prepare and submit to the Secretary for approval an 
integrated farm management plan (hereafter referred to in this 
section as the "plan"); 
(2) actively apply the terms and conditions of the plan, as 
approved by the Secretary; 
(3) devote to a resource-conserving crop, on the average 
through the life of the contract, not less than 20 percent of the 
crop acreage bases enrolled under such program; 
(4) comply with the terms and conditions of any annual 
acreage limitation program in effect for the crop acreage bases 
contracted under the terms of this subsection; and 
(5) keep such records as the Secretary may reasonably re-
quire. 
(d) ACREAGE.—In accepting contracts for the program, the Sec-
retary, to the extent practicable, shall enroll not more than 
3,000,000, nor more than 5,000,000, acres of cropland in the calendar 
years 1991 through 1995. 
(e) CONTRACTS.—The Secretary shall enter into contracts with 
producers to enroll acreage in the program. Such contracts shall be 
for a period of not less than 3 years, but may, at the producer's 
option, be for a longer period of time (up to 5 years) and may be 
renewed upon mutual agreement between the Secretary and the 
producer. 
if) REQUIREMENTS OF THE PLANS.—Each plan approved by the 
Secretary shall— 
(1) specify the acreage and the crop acreage bases to be 
enrolled in the program; 
(2) describe the resource-conserving crop rotation to be imple-
mented and maintained on such acreage during the contract 
period to fulfill the purposes of the program; 
(3) contain a schedule for the implementation, improvement 
and maintenance of the resource-conserving crop rotation de-
scribed in the plan; 
(4) describe the farming operations and practices to be imple-
mented on such acreage and how such operations and practices 
could reasonably be expected to result in— 
(A) the maintenance or enhancement of the overall 
productivity and profitability of the farm; 
(B) the prevention of the degradation of farmland soils, 
the long-term improvement of the fertility and physical 
properties of such soils; and 
(C) the protection of water supplies from contamination 
by managing or minimizing agricultural pollutants if their 
management or minimization results in positive economic 
and environmental benefits; 
(5) assisting the producer to comply with all Federal, State, 
and local requirements designed to protect soil, wetland, wild-
life habitat, and the quality of groundwater and surface water; 
and 
(6) contain such other terms as the Secretary may, by regula-
tion, require. 
(g) ADMINISTRATION; CERTIFICATION; TERMINATION.— 
(1) ADMINISTRATION; TECHNICAL ASSISTANCE; FLEXIBILITY; IM-
PLEMENTATION; DISPLACEMENT.— 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3609 
(A) ADMINISTRATION.—The program shall be admmis-
tered by the Secretary. 
(B) TECHNICAL ASSISTANCE.—In administering the pro-
gram, the Secretary, in consultation with the local con-
servation districts, and any State or local authorities 
deemed appropriate by the Secretary, shall provide tech-
nical assistance to producers in developing and implement-
ing plans, evaluating the effectiveness of plans, and assess-
ing the costs and benefits of farming operations and prac-
tices. The plans may draw on handbooks and technical 
guides and may also include other practices appropriate to 
the particular circumstances of the producer and the pur-
poses of the program. 
(C) FLEXIBILITY.—In administering the program, the Sec-
retary shall provide sufficient flexibility for a producer to 
adjust or modify the producer's plan consistent with this 
section, except that such adjustments or modifications must 
be approved by the Secretary. 
(D) MINIMIZATION OF ADVERSE EFFECT.— 
(i) IN GENERAL.—Notwithstanding any other provi-
sion of this section, the Secretary shall implement this 
section in such a manner as to minimize any adverse 
economic effect on the agribusinesses and other agri-
culturally related economic interests within 
any 
county. State, or region that may result from a de-
crease of harvested acres due to the operation of this 
section. In carrying out this section, the Secretary may 
restrict the total amount of crop acreage that may be 
removed from production, taking into consideration the 
total amount of crop acreage that has, or will be, 
removed from production under other price support, 
production adjustment, or conservation program activi-
ties. 
(ii) MAXIMIZE CONSERVATION GOALS.—The Secretary 
shall, to the greatest extent practicable, permit produc-
ers on a farm that desire to participate in the progrsun 
authorized under this section to enroll acreage ade-
quate to maximize conservation goals on such farm and 
ensure economic effectiveness of the program in each 
individual application. 
(E) DISPLACEMENT.—The Secretary shall not approve any 
plan that will result in the involuntary displacement of 
farm tenants or lessees by landowners through the removal 
of substantial portions of the farm from production of a 
commodity. In the case of any tenant or lessee who has 
rented or leased the farm (with or without a written option 
for annual renewed or periodic renewals) for a period of two 
or more of the immediately preceding years, the Secretary 
shall consider the refusal by a landlord, without reasonable 
cause other than simply for the purpose of enrollment in 
the program, to renew such rental or lease as an involun-
tary displacement in the absence of a written consent to 
such nonrenew£d by the tenant or lessee. 
(2) CERTIFICATION.—The Secretary shall certify compliance by 
producers with the terms and conditions of the plans. 
(3) TERMINATION.—The Secretary may terminate a contract 
entered into with a producer under this program i
f
— 
104 STAT. 3610 
PUBLIC LAW 101-624—NOV. 28, 1990 
(A) the producer agrees to such termination, or 
(B) the producer violates the terms and conditions of such 
contract. 
(h) PROGRAM RULES.— 
(1) BASE AND YIELD PROTECTION.—Notwithstanding any other 
provision of law, the Secretary shall not, except as provided in 
paragraph (6), reduce crop acreage bases, or farm program 
pajmient jdelds, as a result of the planting of a resource-conserv-
ing crop as part of a resource-conserving crop rotation. 
(2) RESOURCE-CONSERVING CROPS ON REDUCED ACREAGE.—Not-
withstanding the provisions of title I of the Agricultural Act of 
1949, acreage devoted to resource-conserving crops as part of a 
resource-conserving crop rotation under this program may also 
be designated as conservation use acreage for the purpose of 
fulfilling any provisions under any acreage limitation or land 
diversion program and up to 50 percent of the acreage so 
designated shall be without restrictions on hajdng and grazing, 
except as provided in paragraph (5XB), except that such acreage 
that is devoted to perennial cover on which cost-share assistance 
for the establishment of the perennial cover has been provided, 
shall not be credited towards the producer's resource-conserving 
crop requirement under a contract under this section. 
(3) BARLEY, OATS, AND WHEAT.—Notwithstanding any other 
provisions of this section, barley, oats, or wheat planted as part 
of a resource-conserving crop on reduced acreage may not be 
harvested in kernel form. 
(4) PAYMENT ACRES.—Notwithstanding any other provision of 
this Act, the Secretary shall not reduce farm program payments 
of participants in this program as a result of the planting a 
resource-conserving crop as part of a resource-conserving crop 
rotation on payment acres. 
(5) HAYING AND GRAZING RESTRICTION.— 
(A) IN GENERAL.—The Secretary shall not make any pro-
gram pa3anents to a producer who is otherwise eligible to 
receive with respect to acreage enrolled in the program if 
such producer hays or grazes such acreage (excluding acre-
age designated as conservation use acreage) during the 5-
month period in each State during which ha)dng and graz-
ing of conserving use acres is not allowed under the provi-
sions of the Agricultural Act of 1949, or, if the crop planted 
on such acreage includes a small grain, before the producer 
harvests the small grain crop in kernel form. 
(B) LIMITATION ON PERMITTED HAYING AND GRAZING.— 
Notwithstanding any other provision of this section, if the 
Secretary determines that implementation of this section 
will result in a significant adverse economic impact on hay 
or livestock prices in a particular geographic area, the 
Secretary may limit the quantity of hay that can be har-
vested or grazed from that area. Such limit may include 
restrictions on the number of times that hay may be har-
vested or grazed from the acres per year, the timing of such 
harvesting and grazing, or the number of years that such 
land may remciin in the same hay stand, or a prohibition on 
the harvesting or grazing of hay from acres on which a 
small grain was not originally interplanted with the hay 
crop and harvested for grain. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3611 
(6) BASE ACRE ADJUSTMENTS.—The Secretary, only for the 
purpose of establishing a producer's crop acreage base under the 
Agricultural Act of 1949, may make such adjustments as the 
Secretary determines to be fair and equitable to reflect re-
source-conserving crop rotation practices that were maintained 
by producers prior to participation in the progrsim and to reflect 
such other factors as the Secretary determines should be consid-
ered, except that the total of such adjustments in any year shall 
not exceed the total farm program savings in the same year that 
would result from the implementation of plans. 
(7) PAYMENT ACREAGE UMITATION.— 
(A) IN GENERAL.—No producers enrolled in a resource-
conserving crop rotation shall not be eligible to receive 
pa}mients under farm programs for wheat, feed grains, 
cotton, or rice under the Agricultural Act of 1949 on acre-
£ige equal to the average 
number of traditionally 
underplanted acres for the three years prior to enrolling in 
this program. 
(B) DEFINITION.— 
(i) IN GENERAL.—Subject to clause (ii), for the pur-
poses of this paragraph the term 
"traditionally 
underplanted acreage" means the difference in a 
particular year between the acreage that is part of a 
producer's crop acreage base that is not planted to the 
program crop and the part of the crop acreage base 
subject to an acreage limitation program or required to 
be set aside. In no case shall such acreage be less than 
zero. 
(ii) EXCEPTION.—In the case of a producer participat-
ing in a particular year in a program authorized under 
section 
101B(cXlXB), section 
103B(cXl)(B), section 
105A(cXlXB), or section 107A(cXlXB) of the Agricul-
tural Act of 1949, the term "traditionally underplanted 
acreage" means 8 percent of the producer's permitted 
acreage for such year. 
SEC. 1452. RESOURCE CONSERVATION AND DEVELOPMENT PROGRAM. 
(a) EUGIBILITY.—Section 1536 of the Agriculture and Food Act of 
1981 (16 U.S.C. 3459) is amended by striking "two hundred and 
twenty-five" and inserting "450". 
(b) AUTHORIZATION.—Section 1538 of the Agriculture and Food Act 
of 1981 (16 U.S.C. 3461) is amended by striking "for each of the five 
fiscal years beginning October 1, 1982, and ending September 30, 
1987," and inserting "for each of the fiscal years 1991 through 
1995". 
SEC. 1453. AMENDMENT TO THE NOXIOUS WEED ACT. 
The Federal Noxious Weed Act of 1974 (7 U.S.C. 2801 et seq.) is 
amended by adding at the end the following: 
"SEC. 15. MANAGEMENT OF UNDESIRABLE PLANTS ON FEDERAL LANDS. 7 USC 2814. 
"(a) DUTIES OF AGENCIES.—Each Federal agency shall— 
"(1) designate an office or person adequately trained in the 
management of undesirable plant species to develop and coordi-
nate an undesirable plants management program for control of 
undesirable plants on Federal lands under the agency's jurisdic-
tion; 
39-194 O - 91 - 10 : QL 3 Part 5 
104 STAT. 3612 
PUBLIC LAW 101-624—NOV. 28, 1990 
"(2) establish and adequately fund an undesirable plants 
management program through the agency's budgetary process; 
Government 
"(3) complete and implement cooperative agreements with 
contracts. 
State agencies regarding the management of undesirable plant 
species on Federal lands under the agency's jurisdiction; and 
"(4) establish integrated management sjrstems to control or 
contain undesirable plant species targeted under cooperative 
agreements. 
"0)) ENVIRONMENTAL IMPACT STATEMENTS.—In the event an 
environmental assessment or environmental impact statement is 
required under the National Environmental Policy Act of 1969 (42 
U.S.C. 4321 et seq.) to implement plant control agreements, Federal 
agencies shall complete such assessments or statements within 1 
year after the requirement for such assessment or statement is 
ascertained. 
"(c) C!00PERATIVE AGREEMENTS WiTH STATE A G E N C I E S . — 
"(1) IN GENERAL.—Federal agencies, as appropriate, shall 
enter into cooperative agreements with State agencies to coordi-
nate the management of undesirable plant species on Federal 
lands. 
"(2) CONTENTS OF PLAN.—A cooperative agreement entered 
into pursuant to paragraph (1) shall— 
"(A) prioritize and target undesirable plant species or 
group of species to be controlled or contained within a 
specific geographic area; 
"(B) describe the integrated management system to be 
used to control or contain the targeted undesirable plant 
species or group of species; and 
"(C) detail the means of implementing the integrated 
management system, define the duties of the Federal 
agency and the State agency in prosecuting that method, 
and establish a timeframe for the initiation and completion 
of the tasks specified in the integrated management system. 
"(d) EXCEPTION.—A Federal agency is not required under this 
section to carry out programs on Federal lands unless similar 
programs are being implemented generally on State or private lands 
in the same area. 
"(e) DEFINITIONS.—As used in this section: 
"(1) C!ooPERATiVE AGREEMENT.—The term 'cooperative agree-
ment' means a written agreement between a Federal agency 
and a State agency entered into pursuant to this section. 
"(2) FEDERAL AGENCY.—The term 'Federal agency' means a 
department, agency, or bureau of the Federal Government 
responsible for administering or managing Federal lands under 
its iurisdiction. 
(3) FEDERAL LANDS.—The term 'Federal lands' means lands 
managed by or under the jurisdiction of the Federal Govern-
ment. 
"(4) INTEGRATED MANAGEMENT SYSTEM.—The term 'integrated 
management systems' means a system for the planning and 
implementation of a program, using an interdisciplinary ap-
proach, to select a method for containing or controlling an 
undesirable plant species or group of species using all available 
methods, including— 
"(A) education; 
"(B) preventive measures; 
"(C) physical or mechanical methods; 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3613 
"(D) biological agents; 
"(E) herbicide methods; 
"(F) cultural methods; and 
"(G) general land management practices such as manipu-
lation of livestock or wildlife grazing strategies or improv-
ing wildlife or livestock habitat. 
"(5) INTERDISCIPLINARY APPROACH.—The term 'interdiscipli-
nary approach' means an approach to meiking decisions regard-
ing the containment or control of an undesirable plant species 
or group of species, which— 
"(A) includes participation by personnel of Federal or 
State agencies with experience in areas including weed 
science, range science, wildlife biology, land management, 
and forestry; and 
"(B) includes consideration of— 
"(i) the most efficient and effective method of 
containing or controlling the undesirable plant species; 
"(ii) scientific evidence and current technology; 
"(iii) the physiology and habitat of a plant species; 
and 
"(iv) the economic, social, and ecological con-
sequences of implementing the program. 
"(6) STATE AGENCIES.—The term 'State agency' means a State 
department of agriculture, or other State agency or political 
subdivision thereof, responsible for the administration or im-
plementation of undesirable plants laws of a State. 
"(7) UNDESIRABLE PLANT SPECIES.—The term 'undesirable 
plants' means plant species that are classified as undesirable, 
noxious, harmful, exotic, injurious, or poisonous, pursuant to 
State or Federal law. Species listed as endangered by the 
Endangered Species Act of 1973 shall not be designated as 
undesirable plants under this section and shall not include 
plants indigenous to an area where control measures are to be 
taken under this section. 
"(f) C!00RDINATI0N.— 
"(1) IN GENERAL.—The Secretary of Agriculture and the Sec-
retary of the Interior shall take such actions as may be nec-
essary to coordinate Federal agency programs for control, re-
search, and educational efforts associated with Federal, State, 
and locally designated noxious weeds. 
"(2) DUTIES.—The Secretary, in consultation with the Sec-
retary of the Interior, shall— 
"(A) identify regional priorities for noxious weed control; 
"(B) incorporate into existing technical guides regionally 
appropriate technical information; and 
"(C) disseminate such technical information to interested 
State, local, and private entities. 
"(3) COST SHARE ASSISTANCE.—The Secretary may provide cost 
share assistance to State and local agencies to manage noxious 
weeds in an area if a majority of landowners in that area agree 
to participate in a noxious weed management program. 
"(g) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to 
be appropriated such sums as may be necessary in each of fiscal 
years 1991 through 1995 to carry out this section.". 
104 STAT. 3614 
PUBLIC LAW 101-624—NOV. 28, 1990 
Research. 
Inter-
governmental 
relations. 
Public 
information. 
7 u s e 3130. 
SEC. 1454. IDENTIFYING THE EFFECTS OF FEDERAL PROGRAMS. 
Section 1541(b) of the Farmland Protection Policy Act (7 U.S.C. 
4202(b)) is amended by inserting "to identify the quantity of farm-
land actually converted by Federal programs, and" after "of this 
section,". 
SEC. 1455. GREAT PLAINS CONSERVATION PROGRAM. 
(a) CONTRACTS.—Section 16(b) of the Soil Conservation and Domes-
tic Allotment Act (16 U.S.C. 590p(b)) is amended— 
(1) in paragraph (1), by striking "1991" and inserting "2001"; 
and 
(2) in paragraph (7), by striking "$600,000,000" and inserting 
"$1,000,000,000". 
(b) DESIGN OF SYSTEMS AND DATA.—Section 16 of the Soil Con-
servation and Domestic Allotment Act (16 U.S.C. 590p) is amended 
by adding at the end thereof the following new subsections: 
"(j) In the design and preparation of resource management sys-
tems under this section, the Secretary shall, where practicable, 
substitute more intensive management measures for structural 
measures. 
"(k) The Secretary shall collect and maintain data on a national 
and State by State basis concerning the resource, environmental 
and economic consequences of the assistance and applications pro-
vided under this section.". 
SEC. 1456. COMPOSTING RESEARCH AND EXTENSION PROGRAM. 
(a) PURPOSE.—It is the purpose of this seclion to require the 
Secretary of Agriculture to identify and compile appropriate meth-
ods of composting agricultural wastes and the potential uses for 
such compost, and to make such information available to the appro-
priate Federal, State, or other private authorities and the general 
public. 
(b) COMPOSTING INFORMATION.— 
(1) SECRETARY.—The Secretary shall identify and compile 
information o n -
(A) the composting of agricultural wastes, including 
information on the composting of wastes from the produc-
tion, processing, and distribution of food, fiber, forestry, 
livestock, and fish products, and the potential uses of such 
compost; and 
(B) laws, rules, and programs adopted by State and local 
governments and foreign governments that establish defini-
tions £ind set standards for the processing, handling, and 
use of compost. 
(2) CONSULTATION.—In identifying 
and 
compiling 
such 
information, the Secretary may consult with representatives of 
other Federal departments and such other persons as the Sec-
retary determines appropriate. 
(c) RESEARCH.—The Secretary shall conduct research on the poten-
tial uses for compost derived from animal wastes, and from other 
waste streams as appropriate, and identify uses for such compost, 
including the potential for marketing such product. Such research 
shall also include evaluation of the application of compost derived 
from agricultural wastes on soil, plants, and food and fiber crops. 
(d) COMPOSTING EXTENSION PROGRAM.—Beginning not later than 
one year after the date of the enactment of this Act, the Secretary 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3615 
shall initiate extension efforts to inform the agricultural community 
and the general public regarding— 
(1) the desirability and safety of compost derived from agricul-
tural wastes; 
(2) on-farm and other composting techniques; and 
(3) procedures for using compost. 
(e) FARM CONSERVATION PRACTICE.—The Secretary shall consider 
designating composting as a farm conservation practice eligible for 
cost-sharing. 
Subtitle E—Watershed Protection and Flood 
Prevention Act; Farmland Protection 
CHAPTER 1—WATERSHED PROTECTION AND FLOOD 
PREVENTION 
SEC. 1461. RELATION OF BENEFITS TO AGRICULTURE. 
The Watershed Protection and Flood Prevention Act of 1954 is 
amended in the third sentence of section 2 (16 U.S.C. 1002)— 
(1) by striking "Each such project" and all that follows 
through "1987," and inserting "Each project"; and 
(2) by inserting after "agriculture" the following: ", including 
rural communities,". 
SEC. 1462. COST SHARE ASSISTANCE. 
The Watershed Protection and Flood Prevention Act (16 U.S.C. 
1001 et seq.) is amended by inserting after section 3 the following 
new section: 
"SEC. 3A. COST SHARE ASSISTANCE. 
"(a) EASEMENTS.—The Secretary may provide cost share assist-
ance to project sponsors to enable such sponsors to acquire perpetual 
wetland or floodplain conservation easements to perpetuate, restore 
and enhance the natural capability of wetlands and floodplains to 
retain excessive floodwaters, improve water quality and quantity, 
and provide habitat for fish and wildlife. 
"(b) AMOUNT.—The Secretary shall require that project sponsors 
of watershed projects provide up to 50 percent of the cost of acquir-
ing easements under subsection (a).". 
SEC. 1463. DATA. 
The Watershed Protection and Flood Prevention Act of 1954 (16 
U.S.C. 1001 et seq.) is amended by adding at the end thereof the 
following new section: 
"SEC. 13. DATA. 
"The Secretary shall collect and maintain data on a national and 
State by State basis concerning— 
"(1) expenditures for the individual flood control and con-
servation measures for which assistance is provided under this 
Act; and 
"(2) the expected flood control or environmental (including 
soil erosion) benefits that will result from the implementation of 
such measures.". 
16 u s e 1003a. 
Research 
Inter-
governmental 
relations. 
16 u s e 1010. 
104 STAT. 3616 
PUBLIC LAW 101-624—NOV. 28, 1990 
SEC. 1464. AMENDMENT TO THE WATERSHED PROTECTION AND FLOOD 
PREVENTION ACT. 
Section 3(6) of the Watershed Protection and Flood Prevention Act 
(16 U.S.C. 1003(6)) is amended by inserting "and enhance the water 
quality o f after "recreation resources of. 
Farms for the 
CHAPTER 2—FARMLAND PROTECTION 
Future Act of 
1990 
7 u s e 4201 note. 
SEC. 1465. SHORT TITLE, PURPOSE, AND DEFINITION. 
(a) SHORT TITLE.—This chapter may be cited as the "Farms for the 
Future Act of 1990". 
(b) PURPOSE.—It is the purpose of this chapter to promote a 
national farmland protection effort to preserve our vital farmland 
resources for future generations. 
(c) DEFINITIONS.—As used in this chapter: 
(1) ALLOWABLE INTEREST RATE.—The term "allowable interest 
rate" refers to an interest rate which shall be the current 
average rate of interest that each State pays on 10-year notes or 
other similar obligations of the State, or a comparable interest 
rate as determined by the Secretary. 
(2) ELIGIBLE LOAN.—The term "eligible loan" means the 10-
year loans made by lending institutions to State trust funds to 
further the purposes of this chapter. No principal payments 
shall be due on such eligible loans for the first 10 years after 
such loan is made and the principal amount shall be paid by the 
State trust fund at the end of the 10th year. For each such 
eligible loan, each State trust fund shall be entitled to receive 
an interest rate subsidy from the Secretary as set forth in 
section 1466(b). 
(3) EuGiBLE STATE.—The term "eligible State" means— 
(A) the State of Vermont; and 
(B) at the option of the Secretary and subject to appro-
priations, any State that on or before August 1, 1991— 
(i) operates or administers a land preservation fund 
that invests funds in the protection or preservation of 
farmland for agricultural purposes; and 
(ii) works in coordination with the governing bodies 
of counties, towns, townships, villages, or other units of 
general government below the State level, or with 
private nonprofit or public organizations, to Eissist in 
the preservation of farmland for agricultural purposes. 
(4) LENDING INSTITUTION.—The term "lending institution" 
means any Federal or State chartered bank, savings and loan 
associations, cooperative lending agencies, or other legally orga-
nized lending agencies. 
(5) PROGRAM.—The term "program" means the farmland 
preservation program established under this chapter to be 
known as the "Agricultural Resource Conservation Demonstra-
tion Progrgmi". 
(6) SECRETARY.—The term "Secretary" means the Secretary of 
Agriculture. 
(7) STATE.—The term "State" means any State of the United 
States, Commonwealth of Puerto Rico, and the Virgin Islands of 
the United States. 
(8) STATE TRUST FUND.—The term "State trust fund" meeins a 
trust fund or an account established by an eligible State, 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3617 
approved to participate by the Secretary in the program, in 
which FedersQ funds received under this chapter are deposited 
for use by such trust fund. 
SEC. 1466. ESTABLISHMENT OF PROGRAM. 
Loan programs. 
Inter-
governmental 
relations. 
(a) IN GENERAL.— 
(1) PURPOSE.—The Secretary, acting through the Farmers 
Home Administration, shall establish and implement a pro-
gram, to be known as the "Agricultural Resource Conservation 
Demonstration Program", to provide Federal guarantees and 
interest rate assistance for loans made by lending institutions to 
State trust funds. 
(2) ASSISTANCE.—Under the program, the Secretary shall 
guarantee the timely pajnnent of the principal amount and 
interest due on eligible loans made by lending institutions to 
State trust funds and shall subsidize the interest on such loans 
at the allowable interest rate for the first 5 years after such 
loan is made, and at no less than three percentage points for the 
second 5 years under procedures described in subsection (b). 
Each State trust fund shall pay the rate of interest, and the 
principal at the end of the 10th year, as provided for in the loan 
agreement regarding each eligible loan. 
(b) 
MANDATORY ASSISTANCE TO EACH ELIGIBLE STATE TRUST 
FUND.—The Secretary shall— 
(1) fully guarantee each eligible loan made by lending institu- Regulations 
tions to each State trust fund under regulations promulgated by 
the Secretary; 
(2) annually pay to each State trust fund an amount cal-
culated by applying the allowable interest rate to the Eunount of 
each loan the State trust fund receives, as determined under 
procedures developed by the Secretary, during each of the first 5 
years after the date on which each such loan is made; and 
(3) annually pay to each State trust fund, for each year during 
the second 5-year period after each such eligible loan is made, 
an amount calculated by applying the interest rate difference, 
between the rate of interest charged to borrowers of direct loans 
as described in section 316(aX2) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1946(aX2)) and the allowable 
interest rate, to the amount of each loan the State trust fund 
receives from any given lending institution, as determined 
under procedures issued by the Secretary. 
(c) FUNDING PROVIDED BY THE SECRETARY OF THE TREASURY.—The Securities. 
Secretary of Agriculture is required to make and issue stock, in the 
same manner as notes are issued under section 309(c) or 309A(d) of 
the Consolidated Farm and Rural Development Act (7 U.S.C. 1929(c) 
or 1929a(d)), to the Secretary of the Treasury for the purpose of 
obtaining Funds from the Secretary of the Treasury that are nec-
essary for discharging the obligations of the Secretary of Agri-
culture under this chapter. Such stock shall not pay dividends and 
shall not be redeemable. 
(d) REQUIRED PURCHASES OF STOCK.—The Secretary shall promptly 
notify, in writing, the Secretary of the Treasury each time an 
application of an eligible State is approved by the Secretary under 
this chapter. The Secretary of the Treasury shall purchase stock 
offered by the Secretary under subsection (c) on the day offered and 
the Secretary of Agriculture shall deposit the proceeds from each 
such sale of stock in accounts created to administer this program. 
104 STAT. 3618 
PUBLIC LAW 101-624—NOV. 28, 1990 
(e) ENTITLEMENTS.—The Secretary is entitled to receive funds, and 
shall receive funds, from the Secretary of the Treasury in an 
amount equal to the total par-value of the stock issued to the 
Secretary of the Treasury. Each State trust fund is entitled to 
receive, and the Secretary of Agriculture shall promptly pay to each 
such trust fund, amounts calculated under procedures described in 
section (b). 
(f) REGULATIONS.—The Secretary shall promulgate proposed and 
final regulations, under the prior public comment provisions of 
section 553 of title 5, United States Code, setting forth— 
(1) the application procedures for eligible States; 
(2) the factors to be used in approving applicants; 
(3) procedures for the prompt pa)mient of the obligations of 
the Secretary under section (b); 
Reporting and 
(4) recordkeeping requirements for approved State trust 
recordkeeping 
funds; 
requirements. 
(5) requirements to prevent program abuse and procedures to 
recover improperly obtained funds; 
(6) rules permitting State trust funds to act as revolving funds 
or to otherwise accumulate additional capital, based on invest-
ments, to be subsequently used to promote the purposes of this 
chapter; and 
(7) any other rules necessary and appropriate to carry out this 
program. 
(g) DURATION OF PROGRAM.—The program established under this 
chapter shall expire on September 30, 1996, except that any finan-
cial obligations of the Secretary shall continue to be met as required 
by this chapter. 
SEC. 1467. FEDERAL ACCOUNTS. 
To carry out the purposes of this chapter, the Secretary may 
establish in the Treasury of the United States an account, to be 
known as the "Agricultural Resource Conservation Revolving 
Fund" (hereinafter referred to in this chapter as the "Fund"), for 
the use by the Secretary to meet the obligations of the Secretary 
under this chapter. 
SEC. 1468. APPLICATIONS AND ADMINISTRATION. 
(a) APPLICATIONS.—In appljdng for assistance under this chapter 
an eligible State shall— 
(1) prepare and submit, to the Secretary, an application at 
such time, in such manner, and containing such information as 
the Secretary shall require; 
(2) agree that the State trust fund will use any Funds pro-
vided by the Secretary under this chapter in a manner which is 
consistent with the chapter and the regulations promulgated by 
the Secretary; and 
(3) agree to comply with any other requirements set forth in 
agreements with the Secretary or as the Secretary may pre-
scribe by regulation. 
O3) ANNUAL APPLICATIONS.—Eligible States may apply for Federsd 
assistance under this chapter on an annual basis. 
(c) MATCH AND MAXIMUM AMOUNT.—The total amount of any 
guarantees provided by the Secretary under this program shall not 
exceed an amount that is equal to double the amount that each 
eligible State shall make available for acquiring interests in land to 
protect and preserve important farmlands for future agricultural 
PUBLIC LAW 101-624—NOV. 28, 1990 
' 
104 STAT. 3619 
use but in no event shall the totail Federal share exceed $10,000,000 
in any fiscal year for any given State. 
SEC. 1469. REPORT. 
Not later than September 30, 1992, and sinnually thereafter, the 
Secretary of Agriculture shall prepare and submit, to the Committee 
on Agriculture of the House of Representatives and the Committee 
on Agriculture, Nutrition, and Forestry of the Senate, a report 
concerning the operation of the program established under this 
chapter. 
SEC. 1470. IMPLEMENTATION AND EFFECTIVE DATE. 
This chapter shall become effective on October 1, 1990. Not later Government 
than December 30, 1990, the Secretary shall enter into an agree- contracts. 
ment with the State of Vermont to provide Federal assistance under Vermont. 
this chapter to the State. 
Subtitle F—Administration of Environmental 
Programs 
SEC. 1471. ESTABLISHMENT OF THE AGRICULTURAL COUNCIL ON 7 USC 5401. 
ENVIRONMENTAL QUALITY. 
(a) EsTABUSHMENT.—The Secretary shall establish an Agricul-
tural Council on Environmental Quality in the Department of Agri-
culture (hereafter in this subtitle referred to as the "Council"). The 
Council shall be under the direct authority of the Secretary, and 
shall be responsible for carrjdng out the provisions of this subtitle, 
and for coordination and direction of all environmental policies and 
programs of the Department. 
Ot)) MEMBERSHIP.—Membership of the Council shall consist of the 
Secretary, the Deputy Secretary, the Assistant Secretary for Natu-
ral Resources and Environment, the Assistant Secretary for Science 
and Education, other under and assistant secretaries as may be 
designated by the Secretary, and the Director of the Office of 
Agricultural Environmental Quality, established in section 1472, 
who shall serve as the Executive Director of the Council. The 
Secretary shall designate a member of the Council, other than the 
Executive Director, as chair of the Council. 
SEC. 1472. OFFICE OF AGRICULTURAL ENVIRONMENTAL QUALITY. 
7 USC 5402. 
(a) EsTABUSHMENT.—The Secretary shall establish an Office of 
Agricultural Environmental Quality in the Department of Agri-
culture (hereafter in this subtitle referred to as the "Office"). 
(b) DIRECTOR.—The Office shall be administered by a director who 
shall be appointed by the Secretary. The Director shall be an 
individual who has demonstrated technical expertise and experience 
in agricultural and environmental matters. 
(c) STAFF.— 
(1) APPOINTMENTS.—The Director may appoint such employ-
ees as may be necessary to assist the Director in carrying out 
this section. Such employees shall include individuals who have 
professional expertise in matters related to environment£il qual-
ity, including (but not limited to) agricultural production, water 
quality, wetland, wildlife conservation, soil conservation, and 
agricultural chemical usage. 
104 STAT. 3620 
PUBLIC LAW 101-624—NOV. 28, 1990 
(2) LIAISONS.—The Administrator of the Environmental 
Protection Agency and the Secretary of the Interior shall detail 
to the Office upon request of the Secretary, on a reimbursable 
basis, at least one employee, respectively, with expertise in 
matters related to agriculture and environmental quality. Such 
detailed employees shall serve as a liaison for their respective 
agencies with the Department of Agriculture to assist the Direc-
tor in carrying out the provisions of this section. The term of the 
detail shall not exceed 3 years. 
(3) ADDITIONAL STAFF.—Upon request of the Secretary, the 
head of any Federal agency is authorized to detail, on a re-
imbursable basis, employees of such agency to the Office to 
assist the Director. 
(d) DUTIES OF THE DIRECTOR.— 
(1) IN GENERAL.—The Director shall assist the Council in 
developing a departmental and agency-specific environmental 
quality policy statement sind implementation plan and an 
annual agricultural environmental quality report, as specified 
in section 1473. The Director shall coordinate and monitor the 
activities of the Department regarding initiatives and programs 
related to environmental quality and the interpretation of de-
partmental policies affecting environmental quality. The Direc-
tor shall serve as a member of the Council and as its Executive 
Director. 
(2) ADDITIONAL DUTIES.—The Director shall also be responsible 
for— 
(A) recommending to the Council environmental protec-
tion goals and specific programs, initiatives, and policies 
that will balance the needs of production agriculture with 
environmental concerns; 
(B) providing advice to the Council on the development, 
implementation, and review of activities of agencies of the 
Department to ensure consistency with the Department's 
environmental protection goals; 
(C) coordinating environmental policy within the Depsirt-
ment through the program managers, and between the 
Department and other Federal agencies, regional authori-
ties. State and local governments, land-grant and other 
colleges and universities, and nonprofit and commercial 
organizations, regarding programs and actions relating to 
environmental quality; 
(D) serving as a coordinator for the Department's data, 
information, 
programs, and initiatives 
dealing 
with 
environmental quality; 
(E) developing the plans and reports required as specified 
by this subtitle; and 
(F) providing such staff as may be necessary to support 
the activities of the Council. 
7 u s e 5403. 
SEC. 1473. ENVIRONMENTAL QUALITY POLICY STATEMENT. 
(a) ENVIRONMENTAL QUAUTY POLICY STATEMENT, IMPLEMENTATION 
PLAN, AND ANNUAL REPORT.— 
(1) POLICY STATEMENT.—The Council shall develop an 
Environmental Quality Policy Statement that identifies goeds 
and objectives for addressing the effects of agriculture on 
environmental quality. The policy statement shall be based 
upon an assessment, in accordance with subparagraph (B), of 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3621 
the current status and level of effort, in terms of staff and 
funding, of programs at the Department of Agriculture to evalu-
ate, prevent, and mitigate environmental problems that may 
result from agricultural production. The policy statement shall 
be revised at least every 5 years. 
(2) ASSESSMENT.—The assessment under subparagraph (A) 
shall include: 
(A) Detadled descriptions of the roles of the involved 
Departmental agencies. 
(B) A description of current efforts to coordinate the 
individual activities of each of the involved departmental 
agencies. 
(C) Recommendations for precluding any undesirable 
duplication of efforts within the Department and among 
the Department and other Federal and State programs. 
(D) Specific recommendations for new initiatives in mon-
itoring, research, extension, and technical assistance efforts 
to address present and potential environmental quality 
problems. 
The assessment may incorporate existing documents and plan-
ning processes within the Department. 
(b) IMPLEMENTATION PLAN.—The Director, subject to the approved 
of the Council, shall prepare a plan to implement the Environ-
mental Quality Policy Statement. The plan shall include an assess-
ment of the activities of each departmental agency to mitigate or 
reduce any negative effects on environmental quality of agricultural 
policies, programs, and practices under their respective jurisdictions 
and shall describe in detail new departmental and agency-specific 
initiatives intended to achieve the goals and objectives of the policy 
statement. The plan shall be revised at least every 5 years. 
(c) ANNUAL ENVIRONMENTAL QUAUTY REPORT.—Not later than 
January 31, 1992, and annually thereafter, the Council, through the 
Director, shall prepare and submit an annual report to the Con-
gress, other appropriate Federal and State agencies, and the public 
on the progress being made toward the goals and objectives estab-
lished in the Environmental Quality Policy Statement. The report 
shall also include— 
(1) a review of the environmental activities and initiatives of 
the Department during the preceding year; 
(2) specific action taken to coordinate the environmental pro-
grams of the Department with programs of other Federal agen-
cies and related State programs; and 
(3) such recommendations sis the Secretary considers appro-
priate regarding current or additional environmental protection 
programs, initiatives, or policies that will balance the needs of 
production agriculture while addressing environmental con-
cerns. 
(d) AUTHORIZATION OF APPROPRIATIONS.—There are hereby au-
thorized to be appropriated annually not to exceed $2,000,000 to 
carry out this subtitle. 
104 STAT, 3622 
PUBLIC LAW 101-624—NOV. 28, 1990 
vv?ter"pSucy "
*
* 
Subtltlc G—Watcr Quality Research, 
Coordination 
Act. 
Education, and Coordination 
7 use 5501. 
SEC. 1481. SHORT TITLE, PURPOSE, DEFINITIONS, AND AUTHORIZATION 
OF APPROPRIATIONS. 
(a) SHORT TITLE.—This subtitle may be cited as the "Agriculture 
and Water Policy Coordination Act". 
Qy) PURPOSE.—It is the purpose of this subtitle to ensure— 
(1) that the Department of Agriculture develops, implements, 
and sustains a coordinated, integrated, and comprehensive 
intra-agency program to protect waters from contamination 
from agricultural chemicals and production practices; and 
(2) increased efforts by the Department of Agriculture in 
extension, technical assistance, and research on the relations 
between agricultural production and the contamination of 
water. 
(c) DEFINITIONS.—For purpose of this subtitle— 
(1) The term "contaminant" means any matter which, in its 
original form or as a metabolite, degradation, or waste product, 
as a constituent of water may impair the quality of water or 
may have a potential adverse effect on human health or the 
environment. 
(2) The term "Department" means the United States Depart-
ment of Agriculture. 
(3) The term "food and agricultural councils" means those 
councils established by the policy of the Secretary in each State 
and made up of the leaders of programs within each State that 
represent agriculture. 
(4) The term "soil and water conservation committees" refers 
to the committees established within the respective States by 
State law and which include the leaders of appropriate State 
agencies that address soil and water conservation. 
(5) The term "Secretary" means the Secretary of Agriculture. 
(6) The term "State" means any of the several States, the 
District of Columbia, the Commonwealth of Puerto Rico, the 
Commonwealth of the Northern Mariana Islands, American 
Samoa, Guam, the Virgin Islands, and federally recognized 
Indian tribes. 
(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 
be appropriated such sums as may be necessary for fiscal years 1991 
through 1995 to carry out this subtitle. 
7 use 5502. 
SEC. 1482. SOIL AND WATER ACTIVITIES. 
(a) PURPOSE.—The Congress declares that an additional purpose of 
the Soil Conservation Service and the Extension Service is to aid in 
protecting and improving the quality of water. 
(b) CONSERVATION PLANS.—The Secretary, when reviewing con-
servation plans for compliance certification, shall determine the 
impact that such plans may have on agriculture and water quality 
planning. The Soil Conservation Service shall complete this deter-
mination by January 1, 2000. 
(c) ACQUISITION OF WATER INFORMATION THROUGH THE NATIONAL 
RESOURCES INVENTORY.—The Secretary shall determine within six 
months after the date of the enactment of this Act whether the 
national resources inventory can be modified to acquire useful 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3623 
information on water conditions and surface conditions that affect 
water quality and supply. In making this determination, the Sec-
retary shall consider— 
(1) the costs, limitations, opportunities, and capability of 
expanding the inventory to include water matters; and 
(2) whether the natural resources inventory can be integrated 
with alternative sources of data on water from Federal and 
State agencies. 
(d) ANNUAL REPORT.—The Secretary shall submit an annual 
report to the Committee on Agriculture of the House of Representa-
tives and to the Committee on Agriculture, Nutrition, and Forestry 
of the Senate in conjunction with the report required under section 
1478(c). The report shall specify the— 
(1) activities and accomplishments of the Soil Conservation 
Service during the preceding year, including measures taken to 
enhance the ability of the Service to address water contamina-
tion problems; 
(2) plans of the Secretary for the subsequent year, concerning 
measures expected to be taken to enhance the ability of the 
Service to address water contamination problems; and 
(3) progress made in carrying out the purpose stated in 
subsection (a). 
SEC. 1483. STATE WATER QUALITY COORDINATION PROGRAM. 
7 USC 5503. 
(a) EsTABUSHMENT.—The Secretary shall require the establish-
ment of a water quality coordination program within each State. To 
the greatest extent possible, the Secretary shall use the expertise of 
the food and agricultural councils. 
(b) MEMBERSHIP.—Each State water quality coordination program 
shall involve those departmental agencies specified in subsection (c) 
that are operating within the State. For the purpose of coordination, 
the State water quality coordination program shall include, should 
they choose to participate, those State agencies with complementary 
water program authorities and programs. These State agency mem-
bers should include the State agencies that are members of the 
respective State's soil and water conservation committees. The pro-
gram shall also include the education program coordinator des-
ignated under section 1629(b). 
(c) AGENCIES.—The agencies referred to in subsection (b) are: the 
Agricultural Research Service; the Agricultural Stabilization and 
Conservation Service; the Animal Plant Health Inspection Service; 
the (Dooperative State Research Service in conjunction with the 
system of State agricultural experiment stations; the Economic 
Research Service; the Extension Service, in conjunction with State 
and county cooperative extension services; the Forest Service; the 
National Agricultural Library; the National Agricultural Statistics 
Service; the Soil Conservation Service; and other agencies within 
the Department deemed appropriate by the Secretary. 
(d) PROGRAM LEADER.—The program leader of the State water 
quality coordination program shall be designated by the Secretary 
from among the Federal agency representatives in subsection (b). 
(e) PURPOSE.—The water quality coordination program within 
each State shall serve as the focal point for coordinating the Depart-
ment's water programs with agencies of that State. In addition to 
other actions, each water quality coordination program shall— 
(1) serve as the focal point within the State for the coordina-
tion of Department-supported agricultural water programs with 
104 STAT. 3624 
PUBLIC LAW 101-624—NOV. 28, 1990 
the water programs being conducted by other Federal agencies 
within the State; 
(2) coordinate departmental activities with other Federal 
activities, within the State with water quality plans developed 
by that State in accordance with applicable Federal and State 
laws; 
(3) review progress being made on identification and mapping 
of hydrologic units within that State; and 
(4) review the needs of that State to assess the Federal 
assistance required for State programs to address agricultural 
sources of water contamination. 
(f) ADVISORY PANELS.—The chair of the water quality coordination 
program in each State may establish an ad hoc advisory panel that 
shall include farmers, representatives of conservation groups, and 
advocates of sustsdnable agricultural practices, agribusiness, chemi-
cal and fertilizer industries, agricultural commodities, lending 
institutions, and trade organizations. 
(g) STATE AND REGIONAL RESEARCH PRIORITIES.—The water quality 
coordination program for each State shall request appropriate rep-
resentative scientists from the Agricultural Research Service, the 
State agricultural experiment stations and the agricultural depart- ^ 
ments of the land-grant universities, to work with the water quality 
coordination program to establish a prioritized agriculture and 
water research agenda for the State. This agenda shall address the 
research topics identified in section 1484 and the concerns or find-
ings established by the activities described in subsection (eX4). The 
State research priorities identified under this subsection shall be 
compiled and reviewed by the appropriate regional and area divi-
sions of the Cooperative State Research Service and the Agricultural 
Research Service to develop coordinated regional research priorities. 
7 u s e 5504. 
SEC. 1484. WATER QUALITY AND NUTRIENT MANAGEMENT RESEARCH. 
(a) PURPOSES.—It is the purpose of this section to establish a 
coordinated water quality and nutrient management research pro-
gram at the Department of Agriculture. In carrying out this section, 
the Secretary shall undertake efforts to— 
(1) reduce the sources of contaminants of surface and ground 
water resources through the development of farm systems 
which replace or conserve the use of such contaminants while 
maintaining farm profitability; 
(2) develop information and technologies needed to formulate 
integrated farm chemical and plant nutrient and animal waste 
management strategies which avoid contamination of surface 
and ground water, especially in areas identified by State and 
Federal monitoring or regulatory efforts as having current or 
potential water quality problems; and 
(3) monitor and better evaluate the extent of water contami-
nation caused by farm chemicals, plant nutrients, and animal 
wastes. 
0)) COORDINATION.—In carrying out this section, the Secretary 
shall ensure that all activities undertaken are coordinated with 
other programs within the Department of Agriculture, other Fed-
eral agencies, and with State governments. 
(c) RESEARCH.—Research projects on water quality funded in 
whole or in part by the Secretary under this section shall include 
research to help— 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3625 
(1) develop farming systems and practices which can prevent 
water contamination while maintaining and improving profit-
ability, including— 
(A) integrated crop management systems; 
(B) sustainable agricultural practices; 
(C) best management practices for use of plant nutrients 
and animal wastes; 
(D) alternative methods of pest and disease control de-
signed to integrate biological, cultural, host-resistance, and 
judicious use of pesticides; and 
(E) improved methods for the storage, use, and safe dis-
posal of potential contaminants; 
(2) improve the understanding of the fate and transport of 
farm chemicals, plant nutrients, £md animal wastes which can 
contaminate water and cause adverse human or environmental 
effects; 
(3) develop integrated crop production systems which are 
more productive, use inputs more efficiently, and are more 
protective of the environment, including research on— 
(A) nutrient management and use efficiency; 
(B) soil and tissue testing and nutrient availability inter-
actions with specific cropping systems; 
(C) plant nutrient needs for nitrogen and elements in 
intensively managed cropping systems; 
(D) enhancement of soil productivity; 
(E) varietal and hybrid interactions with plant nutrient 
requirements and overall crop management; 
(F) the relationship of soil microbial activity to nutrient 
management; 
(G) suitability of cover crops in soil protection and nutri-
ent conservation; 
(H) the role of crop rotations in intensively managed 
cropping systems; 
(I) legume management for nutrient conservation and 
environmental protection; 
(J) interactions of improved nutrient use efficiency and 
efficient water use; 
(K) nutrient availability interactions with soil physical 
conditions; 
(L) nutrient balance effects on improved nitrogen use 
efficiency and lowered nitrate carryover in soils; and 
(M) the importance of subsoil fertility in improved plant 
5delds and nutrient use efficiency; 
(4) monitor and evaluate the extent of water contamination 
from agricultural production methods; 
(5) improve the understanding of the relationships between 
water use and the availability and quality of water; 
(6) improve the accuracy of yield and nutrient advisories; 
(7) improve the understanding of the ecological and biological 
aspects of agricultural production; 
(8) demonstrate the results of research conducted with funds 
provided under this section, undertaken in cooperation with the 
Extension Service, the Soil Conservation Service, and other 
entities; 
(9) reduce water contamination and improve water quality 
relating to the production of cut roses and other fresh cut 
flowers; and 
104 STAT. 3626 
PUBLIC LAW 101-624—NOV. 28, 1990 
(10) meet other critical water quality research needs, as deter-
mined by the Secretary. 
Reports. 
SEC. 1485. REPOSITORY OF AGRICULTURE AND GROUND WATER QUALITY 
7 u s e 5505. 
PLANNING INFORMATION. 
(a) REPOSITORY.—The Secretary, acting through the Administrator 
of the National Agricultural Library, shall establish at such Li-
brary, a repository for all reports prepared and submitted, in accord-
ance with this subtitle, to the Director, the Secretary, or Committees 
of Congress. The Administrator of the Library, in administering 
such repository, shall— 
(1) compile other planning documents concerning agriculture 
and ground water protection that are produced by the Secretary 
and other Federal, regional, and State agencies; 
(2) compile and catalog all Federal statutes relevant to the 
protection of ground water from agricultural production; and 
(3) identify, list, and provide information concerning access to 
data bases and informational sources relating to ground water 
and agricultural production that are available through the 
Secretary, the United States Geological Survey, the Environ-
mental Protection Agency, the Department of Commerce, the 
National Oceanic and Atmospheric Agency, the Tennessee 
Valley Authority, private industry, nonprofit organizations, and 
other sources. 
(b) RESEARCH DATA BASE.— 
(1) REPORT.—Within 270 days after the date of enactment of 
this Act, the Secretary shall prepare and submit a report to the 
Congress on the measures necessary to develop an interactive, 
descriptive national data base to contain information on agri-
cultural practices and water resources (including research re-
sults, monitoring and survey data, pesticide and nutrient use 
data, and other relevant data bases and information sources 
relevant to water protection), to be located at the National 
Agricultural Library. In preparing this report, the Secretary 
shall— 
(A) identify the information required for the development 
of such an agriculture and water data base and identify the 
extent to which such information is now collected either 
publicly or privately; 
(B) determine the extent to which such information can 
be integrated into one data base; and 
(C) develop a plan for implementing the development of 
such a data base. 
(2) CONSULTATION.—In preparing the report, the Secretary 
shall consult as appropriate with the Economic Research 
Service, the Extension Service, the C!ooperative State Research 
Service, the National Agricultural Statistics Service, the Soil 
Conservation Service, the United States Geological Survey, the 
Environmental Protection Agency, such other public and pri-
vate persons as the Secretary determines appropriate. 
(3) DEVELOPMENT.—Ninety days after the date on which the 
report is submitted under subsection (a), the Secretary shall 
initiate the development of the data base in accordance with 
such report. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3627 
Subtitle H—Pesticides 
7 use 136i-l. 
SEC. 1491. PESTICIDE RECORDKEEPING. 
Business and 
(a) REQUIREMENTS.—(1) The Secretary of Agriculture, in consulta- 
T^USCTS 
tion with the Administrator of the Environmental Protection 
Agency, shall require certified applicators of restricted use pes-
ticides (of the type described under section 3(dXlXC) of the Federsd 
Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. 136a(dXlXC)) to 
maintain records comparable to records maintained by commercial 
applicators of pesticides in each State. If there is no State require-
ment for the maintenance of records, such applicator shall maintain 
records that contain the product name, amount, approximate date of 
application, and location of application of each such pesticide used 
for a 2-year period after such use. 
(2) Within 30 days of a pesticide application, a commercial cer-
tified applicator shall provide a copy of records maintained under 
paragraph (1) to the person for whom such application was provided. 
0)) ACCESS.—Records maintained under subsection (a) shall be 
made available to any Federal or State agency that deals with 
pesticide use or any health or environmental issue related to the use 
of pesticides, on the request of such agency. Each such Federal 
agency shall conduct surveys and record the data from individual 
applicators to facilitate statistical analysis for environmental and 
agronomic purposes, but in no case may a government agency 
release data, including the location from which the data was de-
rived, that would directly or indirectly reveal the identity of individ-
ual producers. In the case of Federal agencies, such access to records 
maintained under subsection (a) shall be through the Secretary of 
Agriculture, or the Secretary's designee. State agency requests for 
access to records maintained under subsection (a) shall be through 
the lead State agency so designated by the State. 
(c) HEALTH CARE PERSONNEL.—When a health professional deter-
mines that pesticide information maintained under this section is 
necessary to provide medical treatment or first aid to an individual 
who may have been exposed to pesticides for which the information 
is maintained, upon request persons required to maintain records 
under subsection (a) shall promptly provide record and available 
label information to that health professional. In the case of an 
emergency, such record information shall be provided immediately. 
(d) PENALTY.—The Secretary of Agriculture shall be responsible 
for the enforcement of subsections (a), Qy), and (c). A violation of such 
subsection shall— 
(1) in the case of the first offense, be subject to a fine not more 
than $500; and 
(2) in the case of subsequent offenses, be subject to a fine of 
not less than $1,000 for each violation, except that the penalty 
shall be less than $1,000 if the Secretary determines that the 
person made a good faith effort to comply with such subsection. 
(e) FEDERAL OR STATE PROVISIONS.—The requirements of this sec-
tion shall not affect provisions of other Federal or State laws. 
(f) SURVEYS AND REPORTS.—The Secretary of Agriculture and the 
Administrator of the Environmental Protection Agency, shall 
survey the records maintained under subsection (a) to develop and 
maintain a data base that is sufficient to enable the Secretary and 
the Administrator to publish annual comprehensive 
reports 
concerning agricultural and nonagricultural pesticide use. The 
104 STAT. 3628 
PUBLIC LAW 101-624—NOV. 28, 1990 
Federal 
Register, 
publication. 
Federal 
Register, 
publication. 
Secretary and Administrator shall enter into a memorandum of 
understanding to define their respective responsibilities under this 
subsection in order to avoid duplication of effort. Such reports shall 
be transmitted to Congress not later than April 1 of each year, 
(g) REGULATIONS.—The Secretary of Agriculture and the Adminis-
trator of the Environmental Protection Agency shall promulgate 
regulations on their respective areas of responsibility implementing 
this section within 180 days after the date of the enactment of this 
Act. 
SEC. 1492. DATA IN SUPPORT OF REGISTRATION. 
Section 3(c)(2XA) of the Federal Insecticide, Fungicide, and 
Rodenticide Act (7 U.S.C. 136a(cX2XA)) is amended by inserting after 
the third sentence the following new sentence: "The Administrator 
shall not require a person to submit, in relation to a registration or 
reregistration of a pesticide for minor agricultural use under this 
Act, any field residue data from a geographic area where the 
pesticide will not be registered for such use.". 
SEC. 1493. REDUCTION OR WAIVER OF FEES FOR PESTICIDES REG-
ISTERED FOR MINOR AGRICULTURAL USES. 
Section 4(iX5XA) of the Federal Insecticide, Fungicide, and 
Rodenticide Act (7 U.S.C. 136a-l(iX5XA)) is amended by adding at 
the end thereof the following: 
"In the case of a pesticide that is registered for a minor 
agricultural use, the Administrator may reduce or waive 
the pajnnent of the fee imposed under this subparagraph if 
the Administrator determines that the fee would signifi-
cantly reduce the availability of the pesticide for the use.". 
SEC. 1494. VOLUNTARY CANCELLATION. 
Section 6(f) of the Federal Insecticide, Fungicide, and Rodenticide 
Act (7 U.S.C. 136d(f)) is amended— 
(1) by amending paragraph (1) to read as follows: 
"(1) VOLUNTARY CANCELLATION.— 
"(A) A registrant may, at any time, request that a pes-
ticide registration of the registrant be canceled or amended 
to terminate one or more pesticide uses. 
"(B) Before acting on a request under subparagraph (A), 
the Administrator shall publish in the Federsil Register a 
notice of the receipt of the request and provide for a 30-day 
period in which the public may comment. 
"(C) In the case of a pesticide that is registered for a 
minor agricultural use, if the Administrator determines 
that the cancellation or termination of uses would ad-
versely affect the availability of the pesticide for use, the 
Administrator— 
"(i) shall publish in the Federal Register a notice of 
the receipt of the request and make reasonable efforts 
to inform persons who so use the pesticide of the 
request; and 
(ii) may not approve or reject the request until the 
termination of the 90-day period beginning on the date 
of publication of the notice in the Federal Register, 
except that the Administrator may waive the 90-day 
period upon the request of the registrant or if the 
Administrator determines that the continued use of the 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3629 
pesticide would pose an unreasonable adverse effect on 
the environment. 
"(D) Subject to paragraph (3XB), after complying with this 
paragraph, the Administrator may approve or deny the 
request."; and 
(2) by adding at the end the following new paragraph: 
"(3) TRANSFER OF REGISTRATION OF PESTICIDES REGISTERED FOR 
MINOR AGRICULTURAL USES.—In the case of a pesticide that is 
registered for a minor sigricultural use: 
"(A) During the 90-day period referred to in paragraph 
(IXCXii), the registrant of the pesticide may notify the 
Administrator of an agreement between the registrant and 
a person or persons (including persons who so use the 
pesticide) to transfer the registration of the pesticide, in 
lieu of canceling or amending the registration to terminate 
the use. 
"(B) An application for transfer of registration, in 
conformance with any regulations the Administrator may 
adopt with respect to the transfer of the pesticide registra-
tions, must be submitted to the Administrator within 30 
days of the date of notification provided pursuant to 
subparagraph (A). If such an application is submitted, the 
Administrator shall approve the transfer and shall not 
approve the request for voluntary cancellation or amend-
ment to terminate use unless the Administrator determines 
that the continued use of the pesticide would cause an 
unreasonable adverse affect on the environment. 
"(C) If the Administrator approves the transfer and the 
registrant transfers the registration of the pesticide, the 
Administrator shall not cancel or amend the registration to 
delete the use or rescind the transfer of the registration, 
during the 180-day period beginning on the date of the 
approval of the transfer unless the Administrator deter-
mines that the continued use of the pesticide would cause 
an unreasonable adverse effect on the environment. 
"(D) The new registrant of the pesticide shall assume the 
outstanding data and other requirements for the pesticide 
that are pending at the time of the transfer.". 
SEC. 1495. PEST CONTROL. 
Section 28 of the Federal Insecticide, Fungicide, and Rodenticide 
Act (7 U.S.C. 136w-3) is amended— 
(1) by inserting "(a) IN GENERAL.—" before "The Adminis-
trator,"; and 
(2) by adding at the end thereof the following new subsections: 
"(b) PEST CONTROL AVAILABIUTY.— 
"(1) IN GENERAL.—The Administrator, in cooperation with the 
Secretary of Agriculture, shall identify— 
"(A) available methods of pest control by crop or animal; 
"(B) minor pest control problems, both in minor crops and 
minor or localized problems in major crops; and 
"(C) factors limiting the availability of specific pest con-
trol methods, such as resistance to control methods and 
regulatory actions limiting the availability of control meth-
ods. 
"(2) REPORT.—The Secretary of Agriculture shall, not later 
than 180 days after the date of enactment of this subsection and 
104 STAT. 3630 
PUBLIC LAW 101-624—NOV. 28, 1990 
annually thereafter, prepare a report and send the report to the 
Administrator. The report shall— 
"(A) contain the information described in paragraph (1) 
and the information required by section 1651 of the Food, 
Agriculture, Conservation, and Trade Act of 1990; 
"(B) identify the crucial pest control needs where a short-
age of control methods is indicated by the information 
described in paragraph (1); and 
"(C) describe in detail research and extension efforts 
designed to address the needs identified in subparagraph 
(B). 
"(c) INTEGRATED PEST MANAGEMENT.—The Administrator, in 
cooperation with the Secretary of Agriculture, shall develop 
approaches to the control of pests based on integrated pest manage-
ment that respond to the needs of producers, with a special empha-
sis on minor pests.". 
SEC. 1496. CONFORMING AMENDMENTS TO TABLE OF CONTENTS. 
The table of contents in section 1(b) of the Federal Insecticide, 
Fungicide, and Rodenticide Act (7 U.S.C. prec. 121) is amended— 
(1) by striking out the item relating to section 6(f)(1) and 
inserting in lieu thereof the following new item: 
"(1) Voluntary cancellation."; 
(2) by adding at the end of the item relating to section 6(f) the 
following new item: 
"(3) Transfer of registration of pesticides registered for minor agricultural 
uses."; 
and 
(3) by striking the items relating to section 28 and inserting 
the following new items: 
"Sec. 28. Identification of pests; cooperation with Department of Agriculture's pro-
gram, 
"(a) In general. 
"(b) Pest control availability. 
"(1) In general. 
"(2) Report. 
"(c) Integrated pest management.". 
SEC. 1497. INTER-REGIONAL RESEARCH PROJECT NUMBER 4 (IR-4 PRO-
GRAM). 
Section 2 of the Act entitled "An Act to facilitate the work of the 
Department of Agriculture, gind for other purposes", approved 
August 4,1965 (7 U.S.C. 450i), is amended— 
(1) by redesignating subsections (e) through (i) as subsections 
(f) through (j), respectively; 
(2) by inserting after subsection (d) the following new subsec-
tion: 
"(eXD The Secretary of Agriculture shall establish an Inter-Re-
gional Research Project Number 4 (hereinafter referred to in this 
section as the 'IR-4 Program') to assist in the collection of residue 
and efficacy data in support of^ 
"(A) the registration or reregistration of minor use pesticides 
under the Federal Insecticide, Fungicide, and Rodenticide Act (7 
U.S.C. 136 et seq.); and 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3631 
"(B) tolerances for residues of minor use chemicals in or on 
raw agricultural commodities under sections 408 and 409 of the 
Federal Food, Drug, and Cosmetic Act (21 U.S.C. 346a, 348). 
"(2) The Secretary shall carry out the IR-4 program in coopera-
tion with the Administrator of the Environmental Protection 
Agency, State agricultural experiment stations, colleges and univer-
sities, extension services, private industry, and other interested 
parties. 
"(3) In carrying out the IR-4 program, the Secretary shall give 
priority to registrations, reregistrations, and tolerances for pesticide 
uses related to the production of agricultural crops for food use. 
"(4) As part of carrjdng out the IR-4 program, the Secretary 
shall— 
"(A) participate in research activities aimed at reducing resi-
dues of pesticides registered for minor agricultural use; 
"(B) develop analytical techniques applicable to residues of 
pesticides registered for minor agricultural use, including auto-
mation techniques and validation of analytical methods; and 
"(C) coordinate with other programs within the Department 
of Agriculture and the Environmental Protection Agency de-
signed to develop and promote biological and other alternative 
control measures. 
"(5) The Secretary shall prepare and submit, to appropriate Reports. 
Committees of Congress, a report on an annual basis that contains— 
"(A) a listing of all registrations, reregistrations, and toler-
ances for which data has been collected in the preceding year; 
"(B) a listing of all registration, reregistrations, and toler-
ances for which data collection is scheduled to occur in the 
following year, with an explanation of the priority system used 
to develop this list; 
"(C) a listing of all activities the IR-4 program has carried out 
pursuant to paragraph (4). 
"(6) The Secretary shall submit to Congress within one year of the Reports. 
date of the enactment of this paragraph a report detailing the 
feasibility of requiring recoupment of the costs of developing residue 
data for registrations, reregistrations or tolerances under this pro-
gram. Such recoupment shall only apply to those registrants which 
make a profit on such registration, reregistration, or tolerance 
subsequent to residue data development under this program. Such 
report shall include: 
"(A) an analysis of possible benefits to the IR-4 program of 
such a recoupment; 
"(B) an analysis of the impact of such a payment on the 
availability 
of 
registrants 
to 
pursue 
registrations 
or 
reregistrations of minor use pesticides; and 
"(C) recommendations 
for 
implementation 
of such 
a 
recoupment policy. 
"(7) There are authorized to be appropriated $25,000,000 for fiscal 
year 1991, and such sums as are necessary for subsequent fiscal 
years to carry out this section."; and 
(3) by inserting in subsection (g) following "subsection (b)" the 
following: "and subsection (e)". 
SEC. 1498. BIOLOGICAL PESTICIDE HANDLING STUDY. 
(a) STUDY.—Not later than September 30, 1992, the National 
Academy of Sciences shall conduct a study of the biological control 
programs and registration procedures utilized by the Foiod and Drug 
Appropriation 
authorization. 
7 u s e 136a note. 
104 STAT. 3632 
PUBLIC LAW 101-624—NOV. 28, 1990 
Educational 
programs. 
Technical 
assistance. 
Research. 
7 u s e 5506. 
Inter-
governmental 
relations. 
Nonprofit 
organizations. 
Agricultural 
Development 
and Trade Act of 
1990. 
7 u s e 1691 note. 
Administration, the Animal and Plant Health Inspection Service, 
and the Environmental Protection Agency. 
(b) DEVELOPMENT OF PROCEDURES.—Not later than 1 year sifter the 
completion of the study under subsection (a), the Eigencies and offices 
described in such subsection shall develop and implement a common 
process for reviewing and approving biological control applications 
that are submitted to such agencies and offices that shall be based 
on the study conducted under such subsection and the recommenda-
tion of the National Academy of Sciences, and other public com-
ment. 
SEC. 1499. WATER POLICY WITH RESPECT TO AGRICHEMICALS. 
(a) AUTHORITY.—The Department of Agriculture shall be the prin-
cipal Federal agency responsible and accountable for the develop-
ment and delivery of educational programs, technical assistance, 
and research programs for the users and dealers of agrichemicals to 
insure that— 
(1) the use, storage, and disposal of agrichemicals by users is 
prudent, economical, and environmentally sound; and 
(2) agrichemical users, dealers, and the general public under-
stand the implications of their actions and the potential effects 
on water. 
The Secretary is authorized to undertake such programs and assist-
ance in cooperation with other Federal, State, and local govern-
ments and agencies, and appropriate nonprofit organizations. The 
Secretary shall disseminate the results of efforts in extension, tech-
nical assistance, research, and related activities. The Secretary shall 
undertake activities under this subtitle in coordination with the 
Office of Environmental Quality in section 1612 of this Act. 
(b) AFFECT ON EXISTING AUTHORITY.—The authority greinted in 
subsection (a) does not alter or effect the responsibility of the 
Environmental Protection Agency under the Federal Insecticide, 
Fungicide, and Rodenticide Act (7 U.S.C. 136 et seq.). 
(c) PARTICIPATION.—The following eigencies shall participate in the 
Department's water program: the Agricultural Research Service; 
the Agricultural Stabilization and Conservation Service; the Animal 
Plant Health Inspection Service; the Cooperative State Research 
Service in conjunction with the system of State agricultural experi-
ment stations; the Economic Research Service; the Extension Serv-
ice, in conjunction with State and county cooperative extension 
services; the Forest Service; the National Agricultural Library; the 
National Agricultural Statistics Service; the Soil Conservation Serv-
ice; and other agencies within the Department deemed appropriate 
by the Secretary. 
TITLE XV—AGRICULTURAL TRADE 
SEC. 1501. SHORT TITLE. 
This title may be cited as the 
Trade Act of 1990". 
'Agricultural Development and 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3633 
Subtitle A—Agricultural Trade Development 
and Assistance Act of 1954 
Mickey Leland 
Food for Peace 
Act. 
SEC. 1511. SHORT TITLE. 
7 USC 1691 note. 
This subtitle may be cited as the "Mickey Leland Food for Peace 
Act". 
SEC. 1512. AGRICULTURAL TRADE DEVELOPMENT AND ASSISTANCE ACT 
OF 1954. 
The Agricultural Trade Development and Assistance Act of 1954 
(7 U.S.C. 1691 et seq.) is amended to read as follows: 
"SECTION 1. SHORT TITLE. 
Agricultural 
"This Act may be cited as the 'Agricultural Trade Development Development 
and Assistance Act of 1954'. 
and Assistance 
Act of 1954 
"SEC. 2. UNITED STATES POLICY. 
7 USC 1691. 
"It is the policy of the United States to use its abundant agricul-
tural productivity to promote the foreign policy of the United States 
by enhancing the food security of the developing world through the 
use of agricultural commodities and local currencies accruing under 
this Act to— 
"(1) combat world hunger and malnutrition and their causes; 
"(2) promote broad-based, equitable, and sustainable develop-
ment, including agricultural development; 
"(3) expand international trade; 
"(4) develop and expand export markets for United States 
agricultural commodities; and 
"(5) foster and encourage the development of private enter-
prise and democratic participation in developing countries. 
"SEC. 
3
. 
GLOBAL 
FOOD 
AID 
NEEDS. 
"In view of the principal findings of the National Research Coun-
cil of the National Academy of Sciences that doubling food aid above 
1990 levels of about 10,000,000 metric tons per year would be 
necessary to meet projected global food needs throughout the decade 
of the nineties, it is the sense of Congress that the President 
should— 
"(1) increase the contributions of food aid by the United 
States, and encourage other donor countries to increase their 
contributions toward meeting new food aid requirements; and 
"(2) encourage other advanced nations to make increased food 
aid contributions to combat world hunger and malnutrition, 
particularly through the expansion of international food and 
agricultural assistance programs. 
"TITLE I—TRADE AND DEVELOPMENT 
ASSISTANCE 
7 USC 1691a. 
•SEC. 101. TRADE AND DEVELOPMENT ASSISTANCE. 
"(a) IN GENERAL.—The President shall establish a program under 
this title to provide for the sale of agricultural commodities to 
developing countries for dollars on credit terms, or for local cur-
7 USC 1701. 
President. 
104 STAT. 3634 
PUBLIC LAW 101-624—NOV. 28, 1990 
rencies (including for local currencies on credit terms) for use under 
this title. Such program shall be implemented by the Secretary. 
"(b) GENERAL AUTHORITY.—To carry out the policies and accom-
plish the objectives described in section 2, the Secretary may nego-
tiate and execute agreements with developing countries to finance 
the sale and exportation of agricultural commodities to such coun-
tries. 
7 use 1702. 
"SEC. 102. ELIGIBLE COUNTRIES. 
"(a) IN GENERAL.—A country shall be considered to be a develop-
ing country and eligible for assistance under this title if such 
country has a shortajge of foreign exchange earnings and has dif-
ficulty meeting all of its food needs through commercial channels, as 
determined by the Secretary. 
\ 
"(b) PRIORITY.—In determining whethe;r and to what extent agri-
cultural commodities will be made available to developing countries 
under this title, the Secretary shall give priority to developing 
countries that— 
"(1) demonstrate the greatest need for food; 
"(2) are undertaking measures for economic development pur-
poses to improve food security and agricultural development, 
alleviate poverty, and promote broad-based equitable and 
sustainable development; and 
"(3) have the demonstrated potential to become commercial 
markets for competitively priced United States agricultural 
commodities. 
7 use 1703. 
"SEC. 103. TERMS AND CONDITIONS OF SALES. 
"(a) PAYMENT.— 
"(1) DOLLARS.—Except as provided in paragraph (2), sigree-
ments under this title shall require that payment for agricul-
tural commodities be made in dollars. 
"(2) LOCAL CURRENCIES.— 
"(A) IN GENERAL.—The Secretary may permit a recipient 
country to make pajmient under an agreement under this 
title in the local currency of such country in order to use 
the proceeds from such pajnnents to carry out activities 
under section 104. 
"(B) RATES OF EXCHANGE.—Pajrments in local currency 
shall be at rates of exchange that are no less favorable than 
the highest exchange rate legally obtainable in the country 
and that are no less favorable than the highest exchange 
rate obtainable by any other country. 
"(b) INTEREST.—Such agreements shall provide that interest 
accrue on the payment deferred under such agreement at a 
concessional rate as determined appropriate by the Secretary. 
"(c) DURATION.—Pajnnents required under such agreements may 
be made in reasonable annual amounts over the period (not less 
than 10 nor more than 30 years from the date of the last delivery of 
commodities in each year under such agreement) specified in the 
agreement. 
"(d) DEFERRAL OF PAYMENTS.—The Secretary may defer the date 
on which the recipient country is required to begin making pay-
ment, under such agreements, for a period of not in excess of 7 years 
after the date of the last delivery of commodities in each year under 
the agreement, and interest shall be computed from the date of such 
last delivery. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3635 
"(e) DEUVERY OF COMMODITIES.—Delivery of the commodities shall 
be made in accordance with the terms of the agreement. 
"SEC. 104. USE OF LOCAL CURRENCY PAYMENT. 
7 USC1704. 
"(a) IN GENERAL.—Agreements under this title may provide that 
the Secretary shall use payments made in local currencies by the 
recipient country in accordance with this sectioii. 
"(b) SPECIAL ACCOUNT.—Foreign currencies received by the Sec-
retary under this title shall be deposited in a separate account, that 
may be interest-bearing, to the credit of the United States and such 
currencies £ind interest thereon shall be used as provided for in this 
section. 
"(c) ACTIVITIES.—The proceeds from the payments referred to in 
subsection (a) may be used in the recipient country for the following: 
"(1) TRADE DEVELOPMENT.—To carry out programs to help 
develop markets for United States agricultural commodities on 
a mutually beneficial basis in the recipient country. 
"(2) AGRICULTURAL DEVELOPMENT.—To support— 
"(A) increased agricultural production, including avail-
ability of agricultural inputs, with emphsisis on small 
farms, processing of agricultural commodities, forestry 
management, and land and water management; 
"(B) credit policies for private-sector agriculture develop-
ment; 
"(C) establishment and expansion of institutions for basic 
and applied agricultural research £ind the use of such re-
search through development of extension services; and 
"(D) programs to control rodents, insects, weeds, and 
other animal or plant pests. 
"(3) AGRICULTURAL BUSINESS DEVELOPMENT LOANS.—To make 
loans to United States business entities (including cooperatives) 
and branches, subsidiaries, or affiliates of such entities for 
agricultural business development and agricultural 
trade 
expansion in such recipient countries. 
"(4) AGRICULTURAL FACILITIES LOANS.—To make loans to 
domestic or foreign entities (including cooperatives) for the 
establishment of fecilities for aiding in the utilization or dis-
tribution of, or otherwise increasing the consumption of and 
markets for. United States agricultural products. 
"(5) TRADE PROMOTION.—To promote agricultural trade devel-
opment, under procedures established by the Secretary, by 
making loans or through other activities (including trade fairs) 
that the Secretary determines to be appropriate. 
"(6) PRIVATE SECTOR AGRICULTURAL TRADE DEVELOPMENT.—To 
conduct private sector gigricultural trade development activities 
in the recipient country, as determined appropriate by the 
Secretary. 
"(7) RESEARCH.—To conduct research in agriculture, forestry, 
and aquaculture, including collaborative research which is 
mutually beneficial to the United States and the recipient 
country. 
"(8) UNITED STATES OBUGATIONS.—To make pajmients of 
United States obligations (including obligations entered into 
pursuant to other laws). 
"(d) 
FISCAL REQUIREMENTS REGARDING USE OF LOCAL CUR-
RENCIES.— 
104 STAT. 3636 
PUBLIC LAW 101-624—NOV. 28, 1990 
"(1) EXEMPTION.—Section 1306 of title 31, United States Code, 
shall not apply to local currencies used by the President under 
paragraphs (1) through (7) of subsection (c). 
"(2) USE OF CURRENCIES BY OTHER AGENCIES.—Any department 
or agency of the Federal Government other than the Depart-
ment of Agriculture using any such local currencies for a 
purpose for which funds have been appropriated shall re-
imburse the Commodity Credit Corporation in an amount 
equivalent to the dollar value of the currencies used. 
7 use 1705. 
"SEC. 105. VALUE-ADDED FOODS. 
"(a) PoucY.—Congress declares it to be the policy of the United 
States to assist developing countries that are or have been recipients 
of high protein, blended, or fortified foods under title II to continue 
to combat hunger and malnutrition among the lower income seg-
ments of the population of such countries, especially children, 
through the continued provision of such foods under this title. 
"Qo) PARTIAL WAIVER OF REPAYMENT.—In implementing the policy 
declared in subsection (a), the Secretary, in entering into agree-
ments for the sale of high protein, blended, or fortified foods under 
this title with countries that— 
"(1) provide assurances that the benefits of any waiver 
granted under this subsection will be passed on to the individual 
recipients of such foods; and 
"(2) have a reasonable potential for transferring benefits of 
such waiver to commercial purchasers of such foods; 
may make provisions for a waiver of payment of not to exceed an 
amount equal to the value of that part of the product that is 
attributable to the costs of processing, enrichment, or fortification of 
such product. 
"(c) MINIMIZE IMPACT.—In implementing this section, the Sec-
retary shall, to the extent practicable, minimize the impact of this 
section on other commercial and concessional sales of whole grains. 
"TITLE II—EMERGENCY AND PRIVATE 
ASSISTANCE PROGRAMS 
President. 
"SEC. 201. GENERAL AUTHORITY. 
7 use 1721 
"The President shall establish a program under this title to 
provide agricultural commodities to foreign countries on behalf of 
the people of the United States to— 
"(1) address famine or other urgent or extraordinary relief 
requirements; 
"(2) combat malnutrition, especially in children and mothers; 
"(3) carry out activities that attempt to alleviate the causes of 
hunger, mortality and morbidity; 
"(4) promote economic and community development; 
"(5) promote sound environmental practices; and 
"(6) carry out feeding programs. 
Such program shall be implemented by the Administrator. 
7 use 1722. 
"SEC. 202. PROVISION OF AGRICULTURAL COMMODITIES. 
"(a) 
EMERGENCY 
ASSISTANCE.—Notwithstanding 
any 
other 
provision of law, the Administrator may providfe agricultural 
commodities to meet emergency food needs under this title through 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3637 
governments and public or private agencies, including intergovern-
mental organizations such as the World Food Program and other 
multilateral organizations, in such manner and on such terms and 
conditions as the Administrator determines appropriate to respond 
to the emergency. 
"(b) NON-EMERGENCY ASSISTANCE.—The Administrator may pro-
vide agricultural commodities for non-emergency assistance under 
this title through eligible organizations (as described in subsection 
(d)) that have entered into an agreement with the Administrator to 
use such commodities in accordance with this title. 
"(c) USES OF ASSISTANCE.—Agricultural commodities provided 
under this title may be made avEiilable for direct distribution, sale, 
barter, or other appropriate disposition. 
"(d) EuGiBLE ORGANIZATIONS.—To be eligible to receive assistance 
under subsection (b) an organization shall be— 
"(1) a private voluntary organization or cooperative that is, to 
the extent practicable, registered with the Administrator; or 
"(2) an intergovernmental organization, such as the World 
Food Program. 
"(e) SUPPORT FOR PRIVATE VOLUNTARY ORGANIZATIONS AND CO-
OPERATIVES.— 
"(1) IN GENERAL.—Of the funds made available in each fiscal 
year under this title to private voluntary organizations and 
cooperatives, not less than $10,000,000 and not more than 
$13,500,000 shall be made available by the Administrator to 
assist such organizations and cooperatives in— 
"(A) establishing new programs under this title; and 
"(B) meeting 
specific 
administrative, 
management, 
personnel and internal transportation and distribution 
costs for carrjdng out programs in foreign countries under 
this title. 
"(2) REQUEST FOR FUNDS.—In order to receive funds made 
available under paragraph (1), a private voluntary organization 
or cooperative must submit a request for such funds (which 
must be approved by the Administrator) when submitting a 
proposed to the Administrator for an agreement under this title. 
Such request for funds shall include a specific explanation of^ 
"(A) the program costs to be offset by such funds; 
"(B) the reason why such funds are needed in carrying 
out the particular assistance program; and 
"(C) the degree to which such funds will improve the 
provision of food assistance to foreign countries (particu-
larly those in sub-Saharan Africa suffering from acute, 
long-term food shortages). 
"(3) ASSISTANCE WITH RESPECT TO SALE.—Upon the request of a 
private voluntary organization or cooperative, the Adminis-
trator may provide assistance to that organization or coopera-
tive with respect to the sale of agricultural commodities made 
available to it under this title. 
"(f) EFFECTIVE USE OF C!OMMODITIES.—To ensure that agricultural 
commodities made available under this title are used effectively and 
in the areas of greatest need, organizations or cooperatives through 
which such commodities are distributed shall— 
"(1) to the extent feasible, work with indigenous institutions 
and employ indigenous workers; 
"(2) assess and take into account nutritional and other needs 
of beneficiary groups; 
104 STAT. 3638 
PUBLIC LAW 101-624—NOV. 28, 1990 
"(3) help such beneficiary groups design and carry out mutu-
ally acceptable projects; 
"(4) recommend to the Administrator methods of making 
assistance available that are the most appropriate for each loc^ 
setting; 
"(5) supervise the distribution of commodities provided and 
the implementation of programs carried out under this title; 
and 
"(6) periodically evaluate the effectiveness of projects under-
taken under this title. 
"(g) LABELING.—Commodities provided under this title shsdl, to 
the extent practicable, be clearly identified with appropriate mark-
ings on the package or container of such commodity in the language 
of the locality in which such commodities are distributed, £is being 
furnished by the people of the United States of America. 
7 use 1723. 
"SEC. 203. GENERATION AND USE OF FOREIGN CURRENCIES BY PRIVATE 
VOLUNTARY ORGANIZATIONS AND COOPERATIVES. 
"(a) LOCAL SALE AND BARTER OF COMMODITIES.—An agreement 
entered into between the Administrator and a private voluntary 
organization or cooperative to provide food assistance through such 
organization or cooperative under this title may provide for the sale 
or barter in the recipient country of the commodities to be provided 
under such agreement. 
"(b) MINIMUM LEVEL OF LOCAL SALES.—In carrjdng out £igree-
ments of the type referred to in subsection (a), the Administrator 
shall permit private voluntary organizations and cooperatives to 
sell, in recipient countries, an amount of commodities equal to not 
less than 10 percent of the aggregate amounts of all commodities 
distributed under non-emergency programs under this title for each 
fiscal year, to generate foreign currency proceeds to be used as 
provided in this section. 
"(c) 
DESCRIPTION OF INTENDED 
USES.—A private 
voluntary 
organization or cooperative submitting a proposal to enter into a 
non-emergency food assistance agreement under this title shall 
include in such proposal a description of the intended uses of any 
foreign currency proceeds that may be generated through the sale, 
in the recipient country, of any commodities provided under an 
agreement entered into between the Administrator and the 
organization or cooperative. 
"(d) USE.—Foreign currencies generated from any partial or full 
sale or barter of commodities by a private voluntary organization or 
cooperative under a non-emergency food assistance agreement 
under this title may— 
"(1) be used to transport, store, distribute, and otherwise 
. enhance the effectiveness of the use of agricultural commodities 
provided under this title; 
"(2) be used to implement income generating, community 
development, health, nutrition, cooperative development, agri-
cultural, and other developmental activities within the recipi-
ent country; or 
"(3) be invested and any interest earned on such investment 
may be used for the purposes for which the assistance was 
provided to that organization, without further appropriation by 
Congress. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3639 
"SEC. 204. LEVELS OF ASSISTANCE. 
7 USC 1724. 
"(a) MINIMUM LEVELS.— 
"(1) MINIMUM ASSISTANCE.—Except as provided in paragraph 
(3), the Administrator shall make agricultural commodities 
available for food distribution under this title in an amount 
that— 
"(A) for fiscal year 1991, is not less than 1,925,000 metric 
tons; 
"(B) for fiscal year 1992, is not less than 1,950,000 metric 
tons; 
"(C) for fiscal year 1993, is not less than 1,975,000 metric 
tons; 
"(D) for fiscal year 1994, is not less than 2,000,000 metric 
tons; and 
"(E) for fiscal year 1995, is not less than 2,025,000 metric 
tons. 
"(2) MINIMUM NON-EMERGENCY ASSISTANCE.—Of the amounts 
specified in paragraph (1), and except as provided in paragraph 
(3), the Administrator shall make agricultural commodities 
available for non-emergency food distribution through eligible 
organizations under section 202 in an amount that— 
"(A) for fiscal year 1991, is not less than 1,450,000 metric 
tons; 
"(B) for fiscal year 1992, is not less than 1,475,000 metric 
tons; 
"(C) for fiscal year 1993, is not less than 1,500,000 metric 
tons; 
"(D) for fiscal year 1994, is not less than 1,525,000 metric 
tons; and 
"(E) for fiscal year 1995, is not less than 1,550,000 metric 
tons. 
"(3) EXCEPTION.—The Administrator may waive the require-
ments of paragraphs (1) and (2) for any fiscal year if the 
Administrator determines that such quantities of commodities 
cannot be used effectively to carry out this title or in order to 
meet an emergency. In making a waiver under this paragraph. Reports. 
the Administrator shall prepare and submit to the Committee 
on Foreign Affairs and Committee on Agriculture of the House 
of Representatives, and the Committee on Agriculture, Nutri-
tion, and Forestry of the Senate a report containing the reasons 
for the waiver. 
"(b) USE OF VALUE-ADDED COMMODITIES.— 
"(1) MINIMUM LEVELS.—Except as provided in paragraph (2), 
in making agricultural commodities available under this title, 
the Administrator shall ensure that not less than 75 percent of 
the quantity of such commodities required to be distributed 
during each fiscal year under subsection (aX2) be in the form of 
processed, fortified, or bagged commodities. 
"(2) WAIVER OF MINIMUM.—The Administrator may waive the 
requirement of paragraph (1) for any fiscal year in which the 
Administrator determines that the requirements of the pro-
grams established under this title will not be best served by the 
enforcement of such requirement under such paragraph. 
"SEC. 205. FOOD AID CONSULTATIVE GROUP. 
7 USC 1725. 
"(a) ESTABLISHMENT.—There is established a Food Aid Consul-
tative Group (hereinafter referred to in this section as the 'Group') 
104 STAT. 3640 
PUBLIC LAW 101-624—NOV. 28, 1990 
that shall meet regularly to review and address issues concerning 
the effectiveness of the regulations and procedures that govern food 
assistance programs established and implemented under this title, 
and the implementation of other provisions of this title that may 
involve private voluntary organizations, cooperatives and indige-
nous non-governmental organizations. 
"(b) MEMBERSHIP.—The Group shall be composed of^ 
"(1) the Administrator; 
"(2) the Under Secretary for International Affairs and 
Commodity Programs; 
"(3) the Inspector General of the Agency for International 
Development; 
"(4) a representative of each private voluntary organization 
and cooperative participating in a program under this title, or 
receiving planning assistance funds from the Agency to estab-
lish programs under this title; and 
"(5) representatives from African, Asian and Latin American 
indigenous non-governmental organizations determined appro-
priate by the Administrator. 
"(c) CHAIRPERSON.—The Administrator shall be the chairperson of 
the Group. 
"(d) CONSULTATIONS.—In preparing regulations, handbooks, or 
guidelines implementing this title, or significant revisions thereto, 
the Administrator shall provide such proposals to the Group for 
review and comment. The Administrator shall consult and, when 
appropriate, meet with the Group regarding such proposed regula-
tions, handbooks, guidelines, or revisions thereto prior to the issu-
ance of such. 
"(e) ADVISORY COMMITTEE ACT.—The Federal Advisory Committee 
Act (5 U.S.C. App.) shall not apply to the Group. 
"(f) TERMINATION.—The Group shall terminate on December 31, 
1995. 
7 use 1726. 
"SEC. 206. MAXIMUM LEVEL OF EXPENDITURES. 
"(a) MAXIMUM EXPENDITURES.—Except as provided in subsection 
(b), programs of assistance shall not be undertaken under this title 
during any fiscal year if such programs necessitate an appropriation 
of more than $1,000,000,000 to reimburse the Commodity Credit 
Corporation for all costs incurred in connection with such programs 
(including the Corporation's investment in commodities made avail-
able). 
"(b) WAIVER BY PRESIDENT.—The President may waive the limita-
tion contained in subsection (a) if the President determines that 
such waiver is necessary to undertake programs of assistance to 
meet urgent humanitarian or emergency needs. 
7 use 1726a. 
"SEC. 207. ADMINISTRATION. 
. 
"(a) PROPOSALS.— 
"(1) TIME FOR DECISION.—Not later than 45 days after the 
receipt by the Administrator of a proposal submitted— 
"(A) by a private voluntary organization or cooperative, 
with the concurrence of the appropriate United States field 
mission, for commodities; or 
"(B) by a United States field mission to make commod-
ities available to a private voluntary orgEuiization or co-
operative; 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3641 
, under this title, the Administrator shall make a decision 
concerning such proposal. 
"(2) DENIAL.—If a proposal under parsigraph (1) is denied, the 
response shall specify the reasons for denial and the conditions 
that must be met for the approval of such proposal. 
"(b) NOTICE AND COMMENT.—Not later than 30 days prior to the 
issuance of a final guideline to carry out this title, the Adminis-
trator shall— 
"(1) provide notice of the existence of a proposed guideline, 
and that such guideline is available for review and comment, to 
private voluntary organizations and cooperatives that partici-
pate in programs under this title, and to other interested per-
sons; 
"(2) make the proposed guideline available, on request, to the 
organizations, cooperatives, and other persons referred to in 
paragraph (1); and 
"(3) take any comments received into consideration prior to 
the issuance of the final guideline. 
"(c) REGULATIONS.— 
"(1) IN GENERAL.—The Administrator shall promptly issue all 
necessary regulations and make revisions to agency guidelines 
with respect to changes in the operation or implementation of 
the program established under this title. 
"(2) REQUIREMENTS.—The Administrator shall develop regula-
tions with the intent of— 
"(A) simplifjdng procedures for participation in the pro-
grams established under this title; 
"(B) reducing paperwork requirements under such pro-
grams; 
"(C) establishing reasonable and realistic accountability 
standards to be applied to eligible organizations participat-
ing in the programs established under this title, taking into 
consideration the problems associated with carrying out 
programs in developing countries; and 
"(D) providing flexibility for carrjdng out programs under 
this title. 
"(3) HANDBOOKS.—Handbooks developed by the Administrator 
to assist in carrjdng out the program under this title shall be 
designed to foster the development of programs under this title 
by eligible organizations. 
"(d) DEADUNE FOR SUBMISSION OF COMMODITY ORDERS.—Not later 
than 15 days after receipt from a United States field mission of a 
call forward for agricultural commodities for programs that meet 
the requirements of this title, the order for the purchase or the 
supply, from inventory, of such commodities or products shall be 
transmitted to the Commodity Credit C!orporation. 
"TITLE III—FOOD FOR DEVELOPMENT 
"SEC. 301. BILATERAL GRANT PROGRAM. 
7 USC 1727. 
"(a) IN GENERAL.—The President shall establish a progreim under President. 
which agricultural commodities are donated in accordance with this 
title to least developed countries. The revenue generated by the sale 
of such commodities in the recipient country may be utilized for 
economic development activities. Such program shall be imple-
mented by the Administrator. 
104 STAT. 3642 
PUBLIC LAW 101-624—NOV. 28, 1990 
"(b) GENERAL AUTHORITY.—To carry out the policies and accom-
plish the objectives described in section 2, the Administrator may 
negotiate and execute agreements with least developed countries to 
provide commodities to such countries on a grant basis. 
7 u s e 1727a. 
"SEC. 302. ELIGIBLE COUNTRIES. 
"(a) LEAST DEVELOPED COUNTRIES.—A country shall be considered 
to be a least developed country and eligible for the donation of 
agricultural commodities under this title if— 
"(1) such country meets the poverty criteria established by 
the International Bank for Reconstruction and Development for 
Civil Works Preference for providing financial assistance; or 
"(2) such country is a food deficit country and is characterized 
by high levels of malnutrition among significant numbers of its 
population, as determined by the Administrator under subsec-
tion G)). 
"(b) INDICATORS OF FOOD DEFICIT COUNTRIES.—To make a finding 
under subsection (aX2) that a country is a food deficit country £uid is 
characterized by high levels of malnutrition, the Administrator 
must determine that the country meets all of the following indica-
tors of national food deficit and malnutrition: 
"(1) CALORIE CONSUMPTION.—That the daily per capita calorie 
consumption of the country is less than 2300 calories. 
"(2) FOOD SECURITY REQUIREMENTS.—That the country cannot 
meet its food security requirements through domestic produc-
tion or imports due to a shortage of foreign exchange earnings. 
"(3) CHILD MORTALITY RATE.—That the mortality rate of chil-
dren under 5 years of age in the country is in excess of 100 per 
1000 births. 
"(c) PRIOIOTY.—In determining whether and to what extent agri-
cultural commodities shall be made available to least developed 
countries under this title, the Administrator shall give priority to 
countries that— 
"(1) demonstrate the greatest need for food; 
"(2) demonstrate the capacity to use food assistance effec-
tively; 
"(3) have demonstrated a commitment to policies to promote 
food security, including policies to reduce measurably hunger 
and malnutrition through efforts such as establishing and 
institutionalizing supplemental nutrition programs targeted to 
reach those who are nutritionally at risk; and 
"(4) have a long-term plan for broad-based, equitable, and 
sustainable development. 
7USC1727b. 
"SEC. 303. GRANT PROGRAMS. 
"To carry out the policies and accomplish the objectives described 
in section 2, the Administrator may negotiate and execute agree-
ments with least developed countries to provide commodities to such 
countries on a grant basis either through the Commodity Credit 
Corporation or through private trade channels. 
7 u s e 1727c. 
"SEC. 304. DIRECT USES OR SALES OP COMMODITIES. 
"Agricultural commodities provided to a least developed country 
under this section— 
"(1) may be used in such country for— 
"(A) direct feeding programs, including programs that 
include activities that deal directly with the special health 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3643 
needs of children and mothers consistent with section 
104(cX2) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2151b(cX2)), relating to the Child Survival Fund; or 
"(B) the development of emergency food reserves; or 
"(2) may be sold in such country by the government of the 
country or the Administrator (or their designees) as provided in 
the agreement, and the proceeds of such sale used in accordance 
with this title. 
"SEC. 
3
0
5
. 
LOCAL 
CURRENCY 
ACCOUNTS. 
"(a) RETENTION OF PROCEEDS.—To the extent determined to be 
appropriate by the Administrator, revenues generated from the sale, 
under section 304(2), of agricultural commodities provided under 
this title shall be deposited into a separate account (that may be 
interest bearing) in the recipient country to be disbursed for the 
benefit of such country in accordance with local currency agree-
ments entered into between the recipient country and the Adminis-
trator. The Administrator may determine not to deposit such reve-
nues in a separate account if— 
"(1) local currencies are to be programmed for specific eco-
nomic development purposes listed in section 306(a); and 
"(2) the recipient country programs an equivalent amount of 
money for such purposes as specified in an agreement entered 
into by the Administrator and the recipient country. 
"(b) OWNERSHIP AND PROGRAMMING OF ACCOUNTS.—The proceeds 
of sales pursuant to section 304(2) shall be the property of the 
recipient country or the United States, as specified in the applicable 
agreement. Such proceeds shall be utilized for the benefit of the 
recipient country, shall be jointly programmed by the Administrator 
and the government of the recipient country, and shall be disbursed 
for the benefit of such country in accordance with local currency 
agreements between the Administrator and that government. 
"(c) OvERALX. DEVELOPMENT STRATEGY.—The Administrator shall 
consider the local currency proceeds as an integral part of the 
overall development strategy of the Agency for International Devel-
opment and the recipient country. 
"SEC. 
3
0
6
. 
USE 
OF 
LOCAL 
CURRENCY 
PROCEEDS. 
"(a) IN GENERAL.—The local currency proceeds of sales pursuant 
to section 304(2) shall be used in the recipient country for specific 
economic development purposes, including— 
"(1) the promotion of specific policy reforms to improve food 
security and agricultural development within the country and 
to promote broad-based, equitable, and sustainable develop-
ment; 
"(2) the establishment of development programs, projects, and 
activities that promote food security, alleviate hunger, improve 
nutrition, and promote family planning, maternal and child 
health care, oral rehydration therapy, and other child survival 
objectives consistent with section 104(cX2) of the Foreign Assist-
ance Act of 1961 (22 U.S.C. 2151b(cX2)), relating to the Child 
Survival Fund; 
"(3) the promotion of increased access to food supplies 
through the encouragement of specific policies and programs 
designed to increase emplo3mient and incomes within the coun-
try; 
7 u s e 1727d. 
7 u s e 1727e. 
Nutrition. 
Family 
planning. 
Maternal and 
child health. 
39-194 O - 91 - 11: QL 3 Part 5 
104 STAT. 3644 
PUBLIC LAW 101-624—NOV. 28, 1990 
Highways and 
roads. 
Irrigation. 
Research. 
Education. 
Environmental 
protection. 
"(4) the promotion of free and open markets through specific 
policies and programs; 
"(5) support for United States private voluntary organizations 
and cooperatives and encouragement of the development and 
utilization of indigenous nongovernmental organizations; 
"(6) the purchase of agricultural commodities (including 
transportation and processing costs) produced in the country— 
"(A) to meet urgent or extraordinary relief requirements 
in the country or in neighboring countries; or 
"(B) to develop emergency food reserves; 
"(7) the purchase of goods and services (other than agricul-
tural commodities and related services) to meet urgent or 
extraordinary relief requirements; 
"(8) the payment, to the extent practicable, of the costs of 
carr5dng out the program authorized in title V; 
"(9) private sector development activities designed to further 
the policies set forth in section 2, including loans to financial 
intermediaries for use in making loans to private individuals, 
cooperatives, corporations, or other entities; 
"(10) activities of the Peace Corps that relate to agricultural 
production; 
"(11) the development of rural infrastructure such as roads, 
irrigation systems, £ind electrification to enhance agricultural 
production; 
"(12) research on malnutrition and its causes, as well as 
research relating to the identification and application of policies 
and strategies for targeting resources made available under this 
section to address the problem of malnutrition; and 
"(13) support for research (including collaborative research 
which is mutueilly beneficial to the United States and the 
recipient country), education, and extension activities in agri-
cultural sciences. 
Section 1306 of title 31, United States Code, shall not apply to the 
use under this subsection of local currency proceeds that are owned 
by the United States. 
"(b) 
SUPPORT OF INDIGENOUS NON-GOVERNMENTAL ORGANIZA-
TIONS.—To the extent practicable, not less than 10 percent of the 
amounts contained in an account established for a recipient country 
under section 305(a) shall be used by such country to support the 
development 
and 
utilization 
of indigenous 
nongovernmental 
organizations and cooperatives that are active in rural development, 
agricultural education, sustainable agricultural production, other 
measures to assist poor people, and environmental protection 
projects within such country. 
"(c) INVESTMENT OF LOCAL CURRENCIES BY NONGOVERNMENTAL 
ORGANIZATIONS.—A nongovernmental organization may invest local 
currencies that accrue to that organization as a result of assistance 
under subsection (a), and any interest earned on such investment 
may be used for the purpose for which the assistance was provided 
to that organization without further appropriation by the Congress. 
"(d) 
SUPPORT FOR CERTAIN EDUCATIONAL INSTITUTIONS.—If 
the 
Administrator determines that local currencies deposited in a spe-
cial account pursuant to this title are not needed for any of the 
activities prescribed in paragraphs (1) through (13) of subsection (a) 
or for any other specific economic development purpose in the 
recipient country, the Administrator may use those currencies to 
provide support for any institution (other than an institution whose 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3645 
primary purpose is to provide religious education) located in the 
recipient country that provides education in agricultural sciences or 
other disciplines for a significant number of United States nationals 
(who may include members of the United States Armed Forces or 
the Foreign Service or dependents of such members). 
"TITLE IV—GENERAL AUTHORITIES AND 
REQUIREMENTS 
"SEC. 401. COMMODITY DETERMINATIONS. 
7 USC1731. 
"(a) AVAILABLE COMMODITIES.—After consulting with other agen-
cies of the Federgd Government affected and within policies estab-
lished by the President for implementing this Act, and after taking 
into consideration productive capacity, domestic requirements, farm 
and consumer price levels, commercial exports, and adequate carry-
over, the Secretary shall determine, prior to the beginning of each 
fiscal year, the agricultural commodities and quantities thereof 
available for disposition under this Act. 
"(b) MODIFICATION.—The Secretary may, during the fiscal year, 
modify a determination made under subsection (a) if the Secretary 
provides to the Congress prior notice of that modification (including 
a statement of the reasons for the modification). 
"(c) COMMODITIES NOT AVAILABLE.—No commodity shall be avail-
able for disposition under this Act if such disposition would reduce 
the domestic supply of such commodity below that needed to meet 
domestic requirements, adequate carryover, and anticipated exports 
for dollars as determined by the Secretary, unless the Secretary 
determines that some part of the supply should be used to carry out 
urgent humanitarian purposes under this Act. 
"(d) POLICIES FOR IMPLEMENTING ACT.—The Secretary shall, to the 
extent practicable, seek to maintain a stable level of available 
agricultural commodities under this Act of the kind and tjrpe needed 
to provide food assistance to developing countries and should at-
tempt to make such commodities available to the degree necessary 
to fulfill multi-year agreements entered into under this Act. 
"(e) INEUGIBLE COMMODITIES.— 
"(1) ALCOHOLIC BEVERAGES.—Alcoholic bevereiges shall not be 
made available for disposition under this Act. 
"(2) TOBACCO.—Tobacco or the products thereof shall not be 
made available under section 303 or title II of this Act. 
"(f) MARKET DEVELOPMENT ACTIVITIES.—Subsection (e)(1) shall not 
be construed to prohibit representatives of the United States wine, 
beer, distilled spirits, or other alcoholic bevergige industry from 
participating in agricultural market development activities carried 
out by the Secretary with foreign currencies made available under 
title I of this Act. 
"SEC. 402. DEFINITIONS. 
7 USC1732. 
"As used in this Act: 
"(1) ADMINISTRATOR.—The term 'Administrator' means the 
Administrator of the Agency for International Development, 
unless otherwise specified in this Act. 
"(2) 
AGRICULTURAL COMMODITY.—The term 
'agricultural 
commodity', unless otherwise provided for in this Act, includes 
any agricultural commodity or the products thereof produced in 
104 STAT. 3646 
PUBLIC LAW 101-624—NOV. 28, 1990 
the United States, including wood and processed wood products, 
fish, and Uvestock as well as value-added, fortified, or high-
value agricultural products. Effective beginning on October 1, 
1991, for purposes of title II, a product of an agricultural 
commodity shall not be considered to be produced in the United 
States if it contains any ingredient that is not produced in the 
United States, if that ingredient is produced and is commer-
cially available in the United States at fair and reasonable 
prices. 
"(3) COOPERATIVE.—The term 'cooperative' means a private 
sector organization whose members own and control the 
organization and share in its services and its profits and that 
provides business services and outreach in cooperative develop-
ment for its membership. 
"(4) DEVELOPING COUNTRY.—The term 'developing country' 
means a country that has a shortage of foreign exchange earn-
ings and has difficulty meeting all of its food needs through 
commercial channels. 
"(5) FOOD SECURITY.—The term 'food security' means access by 
all people at all times to sufficient food and nutrition for a 
healthy and productive life. 
"(6) 
INDIGENOUS 
NONGOVERNMENTAL 
ORGANIZATION.—The 
term 'indigenous nongovernmental organization' means an 
organization that operates under the laws of the recipient 
country, or that has its principal place of activity in such 
country, and that works at the local level to solve development 
problems in the foreign country in which it is located, except 
that the term does not include an organization that is primarily 
an agent or instrumentality of the foreign government. 
"(7) PRIVATE VOLUNTARY ORGANIZATION.—The term 'private 
voluntary organization' means a not-for-profit, 
nongovern-
mental organization (in the case of a United States organiza-
tion, an organization that is exempt from Federsd income taxes 
under section 501(cX3) of the Internal Revenue Code of 1986) 
that receives funds from private sources, voluntary contribu-
tions of money, staff time, or in-kind support from the public, 
and that is engaged in or is planning to engage in voluntary, 
charitable, or development assistance activities (other than reli-
gious activities). 
"(8) SECRETARY.—The term 'Secretary' means the Secretary of 
Agriculture, unless otherwise specified in this Act. 
7 use 1733. 
"SEC. 403. GENERAL PROVISIONS. 
"(a) PROHIBITION.—No agricultural commodity shall be made 
available under this Act unless it is determined that— 
"(1) adequate storage facilities will be available in the recipi-
ent country at the time of the arrival of the commodity to 
prevent the spoilage or waste of the commodity; and 
"(2) the distribution of the commodity in the recipient country 
will not result in a substantial disincentive to or interference 
with domestic production or marketing in that country. 
"(b) CONSULTATIONS.—The Secretary or the Administrator, as 
appropriate, shall consult with representatives from the Inter-
national Monetary Fund, the International Bank for Reconstruction 
and Development, the World Bank, and other donor organizations to 
ensure that the importation of United States agricultural commod-
ities and the use of local currencies for development purposes will 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3647 
not have a disruptive impact on the farmers or the local economy of 
the recipient country. 
"(c) TRANSSHIPMENT.—The Secretary or the Administrator, as 
appropriate, shall, under such terms and conditions as are deter-
mined to be appropriate, require commitments from countries de-
signed to prevent or restrict the resale or transshipment to other 
countries, for use for other than domestic purposes, of agricultural 
commodities donated or purchased under this Act. 
"(d) PRIVATE TRADE CHANNELS AND SMALL BUSINESS.—Private 
trade channels shall be used under this Act to the maximum extent 
practicable in the United States and in the recipient countries with 
respect to— 
"(1) sales from privately owned stocks; 
"(2) sales from stocks owned by the Commodity Credit Cor-
poration; and 
"(3) donations. 
Small businesses shall be provided adequate and fair opportunity to 
participate in such sales. 
"(e) 
WORLD 
PRICES.—In carrjdng out this Act, reasonable 
precautions shall be taken to assure that sales or donations of 
agricultural commodities will not unduly disrupt world prices for 
agricultural commodities or normal patterns of commercial trade 
with foreign countries. 
"(f) PuBUCiTY.—Commitments shall be obtained from countries 
receiving commodities under this Act that such countries will 
widely publicize, to the extent practicable, through the use of the 
public media and through other means, that such commodities are 
being provided through the friendship of the American people as 
food for peace. 
"(g) PARTICIPATION OF PRIVATE SECTOR.—The Secretary or 
the 
Administrator, as appropriate, shall encourage the private sector of 
the United States and private importers in developing countries to 
participate in the programs established under this Act. 
"(h) SAFEGUARD USUAL MARKETINGS.—In carr3dng out this Act, 
reasonable precautions shall be taken to safeguard the usual 
marketings of the United States and to avoid displacing any sales of 
the United States eigricultural commodities that the Secretary or 
Administrator determines would otherwise be made. 
"(i) MILITARY DISTRIBUTION OF FOOD AID.— 
"(1) IN GENERAL.—The Secretary or the Administrator, as 
appropriate, shall attempt to ensure that agricultural commod-
ities made available under this Act will be provided without 
regard to the political affiliation, geographic location, ethnic, 
tribal, or religious identity of the recipient or without regard to 
other extraneous factors. 
"(2) PROHIBITION ON HANDUNG OF COMMODITIES BY THE MIU-
TARY.— 
"(A) IN GENERAL.—Except as provided in subparagraph 
(B), the Secretary or the Administrator, as appropriate, 
shall not enter into an agreement under this Act to provide 
agricultural commodities if such agreement requires or 
permits the distribution, handling, or allocation of such 
commodities by the military forces of any government or 
insurgent group. 
"(B) EXCEPTION.—Notwithstanding subparagraph (A), the 
Secretary or the Administrator, as appropriate, may au-
thorize the handling or distribution of commodities by the 
104 STAT. 3648 
PUBLIC LAW 101-624—NOV. 28, 1990 
military forces of a country in exceptional circumstances in 
which— 
"(i) nonmilitary channels are not available for such 
handling or distribution; 
"(ii) such action is consistent with the requirements 
of paragraph (1); and 
'(iii) the Secretary or the Administrator, as appro-
priate, determines that such action is necessary to meet 
the emergency health, safety, or nutritional require-
ments of the recipient population. 
"(C) REPORT.—Not later than 30 days after an authoriza-
tion is provided under subparagraph (B), the Secretary or 
the Administrator, as appropriate, shall prepare and 
submit to the appropriate Committees of Congress a report 
concerning such authorization and include in any such 
report the reason for the authorization, including an expla-
nation of why no alternatives to such handling or distribu-
tion were available. 
"(3) ENCOURAGEMENT OF SAFE PASSAGE.—When entering into 
agreements under this Act that involve areas within recipient 
countries that are experiencing protracted warfare or civil 
strife, the Secretary or the Administrator, as appropriate, shall, 
to the extent practicable, encourage all parties to the conflict to 
permit safe passage of the commodities and other relief supplies 
and to establish safe zones for medical and humanitarian treat-
ment and evacuation of injured persons, 
"(j) VIOLATIONS OF HUMAN RIGHTS.— 
"(1) INEUGIBLE COUNTRIES.—The Secretary or the Adminis-
trator, as appropriate, shall not enter into any agreement under 
this Act to provide agricultural commodities, or to finance the 
sale of agricultural commodities, to the government of any 
country determined by the President to engage in a consistent 
pattern of gross violations of internationally recognized human 
rights, including— 
"(A) the torture or cruel, inhuman, or d^rading treat-
ment or punishment of individuals; 
"(B) the prolonged detention of individuals without 
chaises; 
"(C) the responsibility for causing the disappearance of 
individuals through the abduction and clandestine deten-
tion of such individuals; or 
"(D) other flagrant denials of the right to life, liberty, and 
the security of persons. 
"(2) WAIVER.—Paragraph (1) shall not prohibit the provision 
of assistance to such a country if the assistance is tai^eted to 
the most needy people in such country and is made available in 
such country through channels other than the government. 
"(k) ABORTION PROHIBITION.—Local currencies that are made 
available for use under this Act may not be used to pay for the 
peiformance of abortions as a method of family planning or to 
motivate or coerce any person to practice abortions. 
7 use 1734. 
"SEC. 404. AGREEMENTS. 
"(a) IN GENERAL.—Before entering into agreements under titles I 
and n i for the provision of commodities, the Secretary or the 
Administrator, as appropriate, shall consider the extent to which 
the recipient country is undertaking measures for economic develop-
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3649 
ment purposes in order to improve food security and agricultural 
development, alleviate poverty, and promote broad-based, equitable, 
and sustainable development. 
"(b) TERMS OF AGREEMENT.—An agreement entered into under 
this Act shall— 
"(1) include an estimate of the annual value or volume of 
agricultural commodities proposed to be made available to the 
country or eligible organization under the agreement; 
"(2) with respect to agreements entered into under titles I and 
in, include a statement of the manner in which the agricultural 
commodities provided under the agreement or the revenues 
generated by the sale of such commodities (if such commodities 
are sold), will be integrated into the overall development plans 
of the country to improve food security and agricultural devel-
opment, alleviate poverty, and promote broad-based, equitable, 
and sustainable agriculture; 
"(3) with respect to agreements entered into under titles I and 
III, include a statement of the manner in which competitive 
private sector participation within the recipient country in the 
storage, marketing, transportation, and distribution of eigricul-
tural commodities made available under this Act will be encour-
aged; 
"(4) include a statement that such agreement shall be subject 
to the availability, during each fiscal year to which the agree-
ment applies, of the necessary appropriations and agricultural 
commodities; and 
"(5) contain such other terms and conditions as the Secretary 
or the Administrator, as appropriate, determines to be nec-
essary. 
"(c) MULTI-YEAR AGREEMENTS.— 
"(1) IN GENERAL.—Agreements to provide assistance on a 
multi-year basis under this Act shall be made available to 
recipient countries or to eligible organizations. 
"(2) EXCEPTION.—The Secretary or the Administrator, as 
appropriate, may determine not to make assistance available on 
a multi-year basis with respect to a recipient country or £in 
eligible organization if it is determined that assistance should 
be provided to such country or through such organization only 
on an annual basis because— 
"(A) the past performance of the country or organization 
in meeting program objectives does not warrant a multi-
year agreement; 
"(B) it is anticipated that the need of the country or 
organization for food aid does not extend beyond 1 year; or 
"(C) other circumstances, as determined by the Secretary 
or the Administrator, as appropriate, indicate there is only 
a need for a 1 year agreement. 
"(d) REVIEW OF AGREEMENTS.—The Secretary or the Adminis-
trator, as appropriate, may make a determination to terminate, or 
refuse to enter into, a multi-year agreement with respect to a 
recipient country if the Secretary or the Administrator determines 
that such country is not fulfilling the objectives or requirements of 
this Act. In making such a determination, the Secretary or the 
Administrator, as appropriate, may consider the extent to which the 
country is— 
"(1) making significant economic development reforms; 
104 STAT. 3650 
PUBLIC LAW 101-624—NOV. 28, 1990 
"(2) promoting free and open markets for food and agricul-
tural producers; and 
"(3) fostering increased food security. 
7 use 1735. 
"SEC. 405. CONSULTATION. 
"The Secretary and the Administrator shall cooperate and consult 
in the implementation of this Act. 
7 use 1736. 
"SEC. 406. USE OF COMMODITY CREDIT CORPORATION. 
"(a) IN GENERAL.—The Commodity Credit Corporation shall ac-
quire and make available such agricultural commodities (that have 
been determined to be available under section 401(a)) as necessary to 
carry out eigreements under this Act. 
"(b) INCLUDED EXPENSES.—With respect to commodities made 
available under this Act, the Commodity Credit Corporation may 
pay— 
"(1) the cost of acquiring such commodities; 
"(2) the costs associated with packaging, 
enrichment, 
preservation, and fortification of such commodities; 
"(3) the processing, transportation, handling, and other in-
cidental costs up to the time of the delivery of such commodities 
free on board vessels in United States ports; 
"(4) the ocean freight charges from United States ports to 
designated ports of entry abroad; 
"(5) the costs associated with transporting such commodities 
from United States ports to designated points of entry abroad in 
the case— 
"(A) of landlocked countries; 
"(B) of ports that cannot be used effectively because of 
natural or other disturbances; 
"(C) of the unavailability of carriers to a specific country; 
or 
"(D) of substantial savings in costs or items that may be 
effected by the utilization of points of entry other than 
ports; 
"(6) in the case of commodities for urgent and extraordinary 
relief requirements (including pre-positioned commodities) the 
transportation costs incurred in moving the commodities from 
designated points of entry or ports of entry abroad to storage 
and distribution sites and associated storage and distribution 
costs; and 
"(7) the charges for general average contributions arising out 
of the ocean transport of commodities transferred pursuant 
thereto. 
"(c) C!oMMODiTY CREDIT CORPORATION.—The funds, facilities, and 
authorities of the Commodity Credit (Corporation may be used to 
carry out this Act. 
7 use 1736a. 
"SEC. 407. ADMINISTRATIVE PROVISIONS. 
"(a) TITLE I PROGRAMS.— 
"(1) ACQUISITIONS.—The importing country shall acquire the 
agricultural commodities to be financed under title I. 
"(2) 
INVITATION FOR BID.—No purchase of 
agricultural 
commodities from private stock or purchase of ocean transpor-
tation shall be financed under title I unless such purchases are 
made on the basis of an invitation for bid that is publicly 
advertised in the United States, and on the basis of bid offerings 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT, 3651 
that shall conform to such invitation and be received and 
publicly opened in the United States. All awards in the pur-
chase of commodities or ocean transportation financed under 
title I shall be consistent with open, competitive, and responsive 
bid procedures, as determined appropriate by the Secretary. 
'(b) REPORTING OF FEES.— 
"(1) REQUIREMENT.—Notwithstanding any other provision of 
law, any commission, fee, or other compensation of any kind 
paid, or to be paid, by any supplier of an agricultural commod-
ity, or any ocean transportation financed or agricultural 
commodity donated by the Commodity Credit Corporation 
under title I to any agents, brokers, or other representatives of 
the importer or importing country shall be reported to the 
Secretary by the supplier of the commodity or ocean transpor-
tation. 
"(2) CONTENT.—A report filed under paragraph (1) shall iden-
tify the person or entity to whom the payment is made and the 
amount of the commission or fees paid. 
"(3) PuBUCATiON OF INFORMATION.—The Secretary shall— 
"(A) maintain all information provided under this section 
for public inspection; 
"(B) annually publish a report containing the information 
referred to in subparagraph (A); and 
"(C) forward a copy of the annual report referred to in 
subparagraph (B) to the appropriate committees of Con-
gress. 
"(4) FAILURE TO FILE.—A supplier of a commodity or ocean 
transportation who fails to file a report required under this 
subsection, or who files a false report, shall be ineligible to 
furnish, directly or indirectly, commodities or ocean transpor-
tation financed under title I for a period of not to exceed 5 
years. 
"(c) AGENTS.— 
"(1) AUTHORITY OF THE SECRETARY OR COMMODITY CREDIT COR-
PORATION.— 
"(A) GENERAL RULE.—Except as provided in subpara-
graph (B), if it is determined appropriate, the Secretary or 
the Commodity Credit Corporation may serve as the 
purchasing or shipping agent, or both, for the importing 
country in arranging the purchase or shipping of commod-
ities financed under this section. 
"(B) EXCEPTION.—Notwithstanding subparagraph (A), the 
Secretary or the Commodity Credit Corporation may award, 
under a competitive bidding process, contracts for establish-
ing freight agents who shall act on behalf of the Secretary 
or the Corporation to handle the shipping of commodities 
financed under this Act. 
"(C) AVOIDANCE OF CONFUCT OF INTEREST OF CONTRAC-
TORS.—Freight agents employed by the Secretary or the 
Commodity Credit Corporation under title I shall not rep-
resent any other foreign government during the period of 
their contract with the United States Government. 
"(2) REASONABLE FEES AND COMMISSIONS.— 
"(A) FEES.—Notwithstanding any other provision of law, 
the Secretary or the (Dommodity Credit Corporation may 
enter into an agreement with the importing country that 
contains the terms and conditions that will govern the 
104 STAT. 3652 
PUBLIC LAW 101-624—NOV. 28, 1990 
provision of purchasing or shipping agent services by the 
Secretary or the Corporation, including the establishment 
of fees for such services. Any such fees shall be fair and 
reasonable in relation to the services performed and shall 
be available as reimbursement for costs incurred in provid-
ing such services. 
"(B) PROHIBITION ON COMMISSIONS.—Commissions, fees, or 
other pajonents to any selling agent or to any agent of a 
purchaser shall be prohibited in the purchase of agricul-
tural commodities that are financed under this Act. 
"(3) LIMITATIONS.—No commission, fees, or other pajmients to 
an agent, broker, consultant, or other representative of the 
importer or importing country for ocean transportation broker-
age services in connection with the carriage of commodities 
provided under this Act may— 
"(A) be paid in excess of an amount determined appro-
priate by the Secretary; and 
"(B) be shared by such person with the importer or 
importing country or any agent thereof. 
"(4) AVOIDANCE OF CONFUCT OF INTEREST.—A person may not 
be an agent, broker, consultant, or other representative of the 
United States Government, an importer, or an importing coun-
try in connection with agricultural commodities provided under 
tlus Act during a fiscal year in which such person acts as an 
agent, broker, consultant, or other representative if the person 
is engaged in providing ocean transportation-related services for 
such commodities. For the purpose of this paragraph, the term 
'transportation-related services' means lightening, stevedoring, 
bagging, or inland transportation to the destination point. 
"(d) TITLE II AND III PROGRAM.— 
"(1) ACQUISITION.—The Administrator shall transfer, arrange 
for the transportation, and take other steps necessary to msike 
available agricultural commodities to be provided under title II 
and title III. 
"(2) FULL AND OPEN COMPETITION.—No purchase of agricul-
tural commodities from private stocks or purchase of ocean 
trgmsportation services by the United States Government shall 
be financed under titles II and III unless such purchases are 
made on the basis of full and open competition utilizing such 
procedures as are determined necessary and appropriate by the 
Administrator. 
"(3) AVOIDANCE OF CONFLICT OF INTEREST.—Freight agents 
employed by the Agency for International Development under 
titles II and III shall not represent any other foreign govern-
ment during the period of their contract with the United States 
Grovernment. 
"(4) OCEAN TRANSPORTATION SERVICES.—Notwithstanding any 
provision of the Federal Property Act of 1949, as amended, or 
other similar provisions relating to the making or performance 
of Federal Government contracts, the Administrator may pro-
cure ocean trsinsportation services under this Act under such 
full and open competitive procedures as the Administrator 
determines are necessary and appropriate. 
"(e) TIMING OF SHIPMENTS.—In determining the timing of the 
shipment of agricultural commodities to be provided under this Act, 
the Secretary or the Administrator, as appropriate, shall consider— 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3653 
"(1) the time of harvest of any competing commodities in the 
recipient country; and 
"(2) such other concerns determined to be appropriate. 
"(f) DEADLINE FOR AGREEMENTS UNDER TITLES I AND IIL—An 
agreement under titles I and III shall, to the extent practicable, be 
entered into not later than— 
"(1) November 30 of the first fiscal year in which agricultural 
commodities are to be shipped under the agreement; or 
"(2) 60 days after the date of enactment of the annual Rural 
Development, Agriculture, and Related Agencies Appropria-
tions Act for the first fiscal year in which agricultural commod-
ities are to be shipped under the agreement, 
whichever is later. 
"(g) ANNUAL REPORTS.— 
President. 
"(1) IN GENERAL.—The President shall prepare an annual 
report concerning the programs and activities implemented 
under this Act for the preceding fiscal year. 
"(2) CONTENTS.—Each report shall include— 
"(A) the countries and organizations receiving food and 
other assistance provided to each country and organization 
under this Act; 
"(B) a general description of the projects or activities 
implemented under this Act, including local currency 
funded activities; and 
"(C) a statement of the amount of agricultural commod-
ities made available to each country pursuant to section 
416(b) of the Agricultural Act of 1949 and the Food for 
Progress Act of 1985. 
"(3) SUBMISSION.—The President shall submit such report not 
later than January 15 of each year to the Committee on Agri-
culture and the Committee on Foreign Affairs of the House of 
Representatives and the Committee on Agriculture, Nutrition, 
and Forestry of the Senate. 
"(h) WORLD FOOD DAY REPORT.—On World Food Day, October 16 President. 
of each year, the President shall submit to the appropriate commit-
tees of Congress a report, prepared with the assistance of the 
Secretary and the Administrator, assessing progress towards food 
security in each country receiving United States Government food 
assistance. Special emphasis should be given in such report to the 
nutritional status of the poorest populations in such countries. 
"SEC. 408. EXPIRATION DATE. 
7 USC 1736b. 
"No agreements to finance sales or to provide other assistance 
under this Act shall be entered into after December 31, 1995. 
"SEC. 409. REGULATIONS. 
7 USC 1736c. 
"Not later than 180 days after the date of enactment of this Act, 
regulations shall be issued to implement the provisions of this Act. 
"SEC. 410. INDEPENDENT EVALUATION OF PROGRAMS. 
7 USC 1736d. 
"(a) TITLE I PROGRAM.—Not later than 2 years after the date of 
enactment of this Act, and 2 years thereafter, the Comptroller 
General of the United States shall select five countries that receive 
assistance under title I that are representative of all countries in 
three geographic regions and evaluate the uses of the funds under 
title I in such countries with respect to the impact of such uses on 
agricultural development, agricultural trade development, and the 
104 STAT. 3654 
PUBLIC LAW 101-624—NOV. 28, 1990 
financial management of those funds, with reference to personnel 
requirements to manage these funds. 
"(b) TITLE II PROGRAM,—Not later than 2 years gifter the date of 
enactment of this Act, and 2 years thereafter, the Comptroller 
Greneral of the United States shall select five countries that receive 
assistance under title II that are representative of all countries in 
three geographic regions and evaluate the uses of the assistance 
provided under such title, including an evaluation of the impact of 
such assistance on enhancing food security in such countries and an 
evaluation of the use of local currencies for economic development, 
as well as the financial management of those funds, with reference 
to personnel requirements to manage these funds. 
"(c) TITLE III PROGRAM.—Not later than 2 years after the date of 
enactment of this Act, and 2 years thereafter, the Comptroller 
General of the United States shall select five countries that receive 
assistance under title III that are representative of all such coun-
tries in three geographic regions and evaluate— 
"(1) the uses of the commodities provided under such title in 
such countries; and 
"(2) the uses of the special account funds established in such 
countries under title III; 
with respect to the impact of such uses and funds on enhancing food 
security, including nutrition, in such countries and the financial 
management of those funds, with reference to personnel require-
ments to manage such funds. 
"(d) REPORT TO CONGRESS.—The Comptroller General of the 
United States shall prepare and submit, to the C!ommittee on For-
eign Affairs and the (Committee on Agriculture of the House of 
Representatives and the Committee on Agriculture, Nutrition, and 
Forestry of the Senate, a report concerning the evaluations made 
under this section. 
7 u s e 1736e. 
"SEC. 411. DEBT FORGIVENESS. 
"(a) AUTHORITY.—The President, taking into account the financial 
resources of a country, may waive payments of principal and in-
terest that such country would otherwise be required to make to the 
Commodity Credit Corporation under dollar sales agreements under 
this title if— 
"(1) that country is a least developed country; and 
"(2) either— 
"(A) an International Monetary Fund standby agreement 
is in effect with respect to that country; 
"(B) a structural adjustment program of the Inter-
national Bank for Reconstruction and Development or of 
the International Development Association is in effect with 
respect to that country; 
"(C) a structural adjustment facility, enhanced structural 
adjustment facility, or similar supervised arrangement 
with the International Monetary Fund is in effect with 
respect to that country; or 
"(D) even though such an agreement, program, facility, or 
arrangement is not in effect, the country is pursuing na-
tional economic policy reforms that would promote demo-
cratic, market-oriented, and long term economic develop-
ment. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3655 
"(b) REQUEST FOR DEBT REUEF BY PRESIDENT.—The President may 
provide debt relief under subsection (a) only if a notification is 
submitted to Congress. Such a notification shall— 
"(1) specify the gimount of official debt the President proposes 
to liquidate; and 
"(2) identify the countries for which debt relief is proposed 
and the basis for their eligibility for such relief. 
"(c) APPROPRIATIONS ACTION REQUIRED.—The aggregate amount of 
principal and interest waived under this section may not exceed the 
amount approved for such purpose in an Act appropriating funds to 
carry out this Act. 
"(d) LIMITATION ON NEW CREDIT ASSISTANCE.—If the authority of 
this section is used to waive payments otherwise required to be 
made by a country pursuant to this Act, the President may not 
provide any new credit assistance for that country under this Act 
during the 2-year period beginning on the date such waiver author-
ity is exercised, unless the President provides to the Congress, before 
the assistance is provided, a written justification for the provision of 
such new credit assistance. 
"(e) APPUCABILTTY.—The authority of this section applies with 
respect to credit sales agreements entered into before the date of 
enactment of this Act. 
"SEC. 412. AUTHORIZATION OF APPROPRIATIONS. 
7 USC 1736f. 
"(a) REIMBURSEMENT.—There are authorized to be appropriated 
such sums as may be necessary to carry out— 
"(1) the concessional credit sales program established under 
title I; 
"(2) the emergency and private assistance program under title 
II; and 
"(3) the grant program established under title III, 
including such amounts as may be required to make payments to 
the C!ommodity Credit Corporation to the extent the (Commodity 
Credit Corporation is not reimbursed under the programs under this 
Act for the actual costs incurred or to be incurred by such Corpora-
tion in carrjdng out such programs. 
"(b) LIMITATIONS.—Of the amounts made available in each fiscal 
year to carry out titles I and III, not less than— 
"(1) 40 percent shall be made available to carry out the credit 
sales program established under title I; and 
"(2) 40 percent shall be made available to carry out the grant 
program established under title III. 
"(c) TRANSFER OF FUNDS.—Notwithstanding any other provision of 
law and except as provided in subsection (b), if the President deter-
mines it to be necessary for purposes of this Act, the President may 
direct that not in excess of 15 percent of the funds available in any 
fiscal year for carrying out any title of this Act be used to carry out 
any other title of this Act. 
"(d) BUDGET.—In presenting the Budget of the United States, the President. 
President shall classify expenditures under this Act as expenditures 
for international affairs and finance rather than for agriculture and 
agricultural resources. 
"(e) VALUE OF COMMODITIES.—Notwithstanding any other provi-
sion of law, in determining the reimbursement due the Commodity 
Credit Corporation for all expenses incurred under this Act, 
commodities from the inventory of the C!ommodity Credit Corpora-
tion that were acquired under title I of the Agricultural Act of 1949 
104 STAT. 3656 
PUBLIC LAW 101-624—NOV. 28, 1990 
(7 U.S.C. 1421 et seq.) shall be valued at a price not greater than the 
export market price for such commodities, as determined by the 
Secretary, as of the time such commodity is made available under 
this Act. 
7 u s e 1736g. 
"SEC. 413. COORDINATION OF FOREIGN ASSISTANCE PROGRAMS. 
"To the maximum extent practicable, assistance for a foreign 
country under this Act shall be coordinated and integrated with 
United States development assistance objectives and programs for 
that country and with the overall development strategy of that 
Nutrition. 
country. Special emphasis should be placed on, and funds devoted to, 
Child welfare. 
activities that will increase the nutritional impact of programs of 
assistance under this Act, and child survival programs and projects, 
in least developed countries by improving the design and im-
plementation of such programs and projects. 
7 u s e 1736g-l. 
"SEC. 414. ASSISTANCE IN FURTHERANCE OF NARCOTICS CONTROL 
OBJECTIVES OF THE UNITED STATES. 
(a) SUBSTANTIAL INJURY.—Local currencies that are made avail-
able for use under this Act may not be used to finance the produc-
tion for export of agricultural commodities (or products thereof) that 
would compete in the world market with similar agricultural 
commodities (or products thereof) produced in the United States, if 
such competition would cause substantial injury to the United 
States producers, as determined by the President. 
(b) EXCEPTION FOR NARCOTICS CONTROL.—Notwithstanding subsec-
tion (a), the President may provide assistance under this Act, includ-
ing assistance through the use of locsd currencies generated by the 
sale of commodities under such Act, for economic development 
activities undertaken in an eligible country that is a major illicit 
drug producing country (as defined in section 481(iX2) of the Foreign 
Assistance Act of 1961), for the purpose of reducing the dependence 
of the economy of such country on the production of crops from 
which narcotic and psychotropic drugs are derived. 
"TITLE V—FARMER-TO-FARMER 
PROGRAM 
7USC1737. 
"SEC. 501. FARMER-TO-FARMER PROGRAM. 
"(a) IN GENERAL.—To further assist developing countries, middle-
income countries, and emerging democracies to increase farm 
production and farmer incomes, the President may, notwithstanding 
any other provision of law— 
"(1) establish and administer a program of farmer-to-farmer 
assistance between the United States and such countries to 
assist in increasing food production and distribution and 
improving the effectiveness of the farming and marketing oper-
ations of farmers; 
"(2) utilize United States farmers, agriculturalists, land grant 
universities, 
private 
agribusinesses, 
and 
nonprofit 
farm 
organizations to work in conjunction with farmers and farm 
organizations in such countries, on a voluntary basis, to facili-
tate the improvement of farm and agribusiness operations and 
agricultural systems in such countries, including suiimal care 
and health, field crop cultivation, fruit and vegeteble growing. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3657 
livestock operations, food processing and packaging, farm 
credit, marketing, inputs, agricultural extension, and the 
strengthening of cooperatives £ind other farmer groups; 
"(3) transfer the knowledge and expertise of United States 
agricultural producers and businesses, on a people-to-people 
basis, to such countries while enhancing the democratic process 
by supporting private and public, agriculturally 
related 
organizations that request and support technical assistance 
activities through cash and in-kind services; 
"(4) to the extent practicable, enter into contracts or other Government 
cooperative agreements with or make grants to private vol- contracts. 
untary organizations, cooperatives, land grant universities, pri- ^'"^"^ programs. 
vate agribusiness, or nonprofit farm organizations to carry out 
this section (except that any such contract or other agreement 
may obligate the United States to make outlays only to the 
extent that the budget authority for such outlays is available 
pursuant to subsection (c) or has otherwise been provided in 
advance in appropriation Acts); 
"(5) coordinate programs established under this section with 
other foreign assistance activities carried out by the United 
States; and 
"(6) to the extent practicable, augment the funds available for 
programs established under this section through the use of 
foreign currencies that accrue from the sale of agricultural 
commodities under this Act, and local currencies generated 
from other t3rpes of foreign assistance activities. 
"(b) DEFINITIONS.—The following definitions apply for purposes of 
this section: 
"(1) EMERGING DEMOCRACY.—The term 'emerging democracy' 
means a country that is taking steps toward— 
"(A) political pluralism, based on progress toward free 
and fair elections and a multiparty political system; 
"(B) economic reform, based on progress toward a 
market-oriented economy; 
"(C) respect for internationally recognized human rights; 
and 
"(D) a willingness to build a friendly relationship with 
the United States. 
"(2) MIDDLE INCOME COUNTRY.—The term 'middle income 
country' means a country that has developed economically to 
the point where it does not receive bilateral development assist-
ance from the United States. 
"(c) MINIMUM FUNDING.—Notwithstanding any other provision of 
law, not less than 0.2 percent of the amounts made available for 
each of the fiscal years 1991 through 1995 to carry out this Act, in 
addition to any funds that may be specifically appropriated to carry 
out this section, shall be used to carry out programs under this 
section, with not less than 0.1 percent to be used for programs in 
developing countries. 
104 STAT. 3658 
PUBLIC LAW 101-624—NOV. 28, 1990 
Latin America. 
Caribbean. 
"TITLE VI—ENTERPRISE FOR THE 
AMERICAS INITIATIVE 
7 use 1738. 
7 use 1738a. 
7 use 1738b. 
President. 
7 use 1738c. 
"SEC. 601. ESTABLISHMENT OF THE FACILITY. 
"There is established in the Department of the Treasury an entity 
to be known as the 'Enterprise for the Americas Facility' (hereafter 
referred to in this title as the 'Facility'). 
"SEC. 602. PURPOSE. 
"The purpose of this title is to encourage and support improve-
ment in the lives of the people of Latin America and the Caribbean 
through market-oriented reforms and economic growth with inter-
related actions to promote debt reduction, investment reforms, and 
community-based conservation and sustainable use of the environ-
ment. The Facility will support such objectives through the adminis-
tration of debt reduction operations relating to those countries that 
meet investment reform and other policy conditions provided for in 
this title. 
"SEC. 603. ELIGIBILITY FOR BENEFITS UNDER THE FACILITY. 
"(a) REQUIREMENTS.—To be eligible for benefits from the Facility 
under this title, a country shall— 
"(1) be a Latin American or Caribbean country; 
"(2) have in effect or have received approval for, or, as 
appropriate in exceptional circumstances, be making significant 
progress towards the establishment of— 
"(A) an International Monetary Fund (hereafter referred 
to in this title as the IMF') standby arrangement, extended 
IMF arrangement, or an arrangement under the structural 
adjustment facility or enhanced structural adjustment facil-
ity, or in exceptional circumstances, an IMF-monitored pro-
gram or its equivalent; and 
"(B) as appropriate, structural or sectoral adjustment 
loans from the International Bank for Reconstruction and 
Development (hereafter referred to in this title as the 
'World Bank') or the International Development Associa-
tion (hereafter referred to in this title as the 'IDA'); 
"(3) have placed into effect major investment reforms in 
conjunction with an InterAmerican Development Bank (here-
after referred to as the 'IDB') loan or otherwise be implement-
ing, or making significant progress towards an open investment 
regime; and 
(4) if appropriate, have agreed with its commercial bank 
lenders on a satisfactory financing program, including, as 
appropriate, debt or debt service reduction. 
"(b) EuGiBiLTTY DETERMINATION.—The President shall determine 
whether a country is an eligible country for purposes of subsection 
(a). 
"SEC. 604. REDUCTION OF CERTAIN DEBT. 
"(a) AUTHORITY TO REDUCE DEBT.— 
"(1) IN GENERAL.—Notwithstanding any other provision of 
law, the President may reduce the amount owed to the United 
States or any agency of the United States, and outstanding as of 
January 1,1990, as a result of any credits extended under title I 
to a country eligible for benefits from the Facility. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3659 
"(2) AvALiABiLTTY OF APPROPRIATIONS.—The authorities under 
this section may be exercised only to the extent provided for in 
advance in appropriation Acts. 
"(b) LIMITATION.—A debt reduction authorized under subsection 
(a) shall be accomplished, at the direction of the Facility, through 
the exchange of a new obligation under this title for obligations of 
the tjrpe referred to in subsection (a) outstanding as of January 1, 
1990. 
"(c) EXCHANGE OF OBUGATIONS.—The Facility shall notify the 
Commodity Credit Corporation of an agreement entered into under 
subsection (b) with an eligible country to exchange a new obligation 
for outstanding obligations. At the direction of the Facility, the old 
obligations that are the subject of the agreement may be canceled 
and a new debt obligation may be established for the country 
relating to the agreement. The Commodity Credit Corporation shall 
make an adjustment in its accounts to reflect a debt reduction under 
this section. 
"SEC. 605. REPAYMENT OF PRINCIPAL. 
7 USC 1738d. 
"(a) CURRENCY OF PAYMENT.—The principal amount owed under 
each new obligation issued under section 604 shall be repaid in 
United States dollars. 
"Ot)) DEPOSIT OF PAYMENTS.—Principal repa3nnents on new obliga-
tions issued under section 604 shall be deposited in Commodity 
Credit Corporation accounts. 
"SEC. 606. INTEREST OF NEW OBLIGATIONS. 
. 
7 USC 1738e. 
"(a) RATE OF INTEREST.—New obligations issued to an eligible 
country under section 604 shall bear interest at a concessional rate. 
"(b) CURRENCY OF PAYMENT, DEPOSITS.— 
"(1) UNITED STATES DOLLARS.—An eligible country to which a 
new obligation has been issued under section 604 that has not 
entered into an agreement under section 607, shall be required 
to pay interest on such obligation in United States dollars which 
shall be deposited in Commodity Credit Corporation accounts. 
"(2) LOCAL CURRENCY.—If an eligible country to which a new 
obligation has been issued under section 604 has entered into an 
agreement under section 607, interest under such obligation 
may be paid in the local currency of the eligible country and 
deposited into an Environmental Fund as provided for in sec-
tion 608. Such interest shall be the property of the eligible 
country until such time as it is disbursed under section 608. 
Such local currencies shall be used for the purposes specified in 
the agreement entered into under section 607. 
"(c) INTEREST PREVIOUSLY PAID.—If an eligible country to which a 
new obligation has been issued under section 604 enters into an 
agreement under section 607 subsequent to the date on which 
interest first becomes due on such new obligation, any interest paid 
on such new obligation prior to such agreement being entered into 
shall not be redeposited into the Fund established for the eligible 
country under section 608(a) but shall be deposited into Commodity r 
Credit Corporation. 
"SEC. 607. ENVIRONMENTAL FRAMEWORK AGREEMENTS. 
7 USC 1738f. 
"(a) AUTHORITY.—The President is authorized to enter into an 
environmental framework agreement with each country eligible for 
benefits from the Facility concerning the operation and use of an 
104 STAT. 3660 
PUBLIC LAW 101-624—NOV. 28, 1990 
Enterprise for the Americas Environmental Fund (hereafter re-
ferred to in this title as the 'Environmental' Fund) established 
President. 
under section 608 for that country. The President shall consult with 
the Board established under section 610 when entering into such 
agreements. 
"(b) REQUIREMENTS.—An environmental framework agreement 
entered into under this section shall— 
"(1) require the eligible country to establish an Environ-
mental Fund; 
"(2) require the eligible country to make interest payments 
under section 608(a) into the Environmental Fund; 
"(3) require the eligible country to make prompt disburse-
ments from the Environmental Fund to the body described in 
subsection (c); 
"(4) where appropriate, seek to maintain the value of the local 
currency resources deposited into the appropriate Environ-
mental Fund in terms of United States dollars; 
"(5) specify, in accordance with section 612, the purposes for 
which the Environmental Fund may be used; and 
"(6) contain reasonable provisions for the enforcement of the 
terms of the agreement. 
"(c) ADMINISTERING BODY.—Funds disbursed from the Environ-
mental Fund in an eligible country shall be administered by a body 
constituted under the laws of the country. Such body shall— 
"(1) be composed of— 
"(A) one or more representatives appointed by the Presi-
dent; 
"(B) one or more representatives appointed by the eligible 
country; and 
"(C) representatives from a broad range of environmental 
and 
local 
community 
development 
nongovernmental 
organizations of the host country; 
the majority of which shall be local representatives from non-
governmental organizations, and scientific or academic bodies; 
Grant programs. 
"(2) receive proposals for grant assistance from local organiza-
tions, and make grants to such organizations in accordance with 
the priorities agreed upon in the framework agreement and 
consistent with the overall purposes of section 612; 
"(3) be responsible for the management of the program and 
oversight of grant activities funded from resources of the 
Environmental Fund; 
"(4) be subject to fiscal audits by an independent auditor on 
an annual basis; 
"(5) present an annual program for review by the Board 
established under section 610 each year; 
"(6) present an annual report on the activities undertaken 
during the previous year to the Chairman of the Board estab-
lished under section 610, and the government of the eligible 
country each year; and 
"(7) have any grgmt over $100,000 be subject to veto by the 
United States and the government of the eligible country. 
7 use 1738g. 
"SEC. 608. ENTERPRISE FOR THE AMERICAS ENVIRONMENTAL FUNDS. 
"(a) EsTABUSHMENT.—An eligible country shall, under the terms 
of an environmental framework agreement entered into under sec-
tion 607, establish an Environmentsd Fund to receive pa3anents in 
local currency pursuant to section 607(bXl). 
Reports. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3661 
"Ot)) INVESTMENT.—Amounts deposited into an Environmental 
Fund shall be invested until disbursed. Notwithstanding any other 
provision of law, any return on such investment may be retained by 
the Environmental Fund and need not be deposited to the account of 
the Commodity Credit Corporation and may be retained without 
further appropriation by Congress. 
"SEC. 609. DISBURSEMENT OF ENVIRONMENTAL FUNDS. 
7 USC 1738h. 
"Funds in an Environmental Fund shall be disbursed only pursu-
ant to a framework agreement entered into pursuant to section 607. 
"SEC. 610. ENVIRONMENT FOR THE AMERICAS BOARD. 
7 USC 17381. 
"(a) EsTABusHMENT.—There is established a board to be known as 
the 'Environment for the Americas Board' (hereafter referred to in 
this title as the 'Board'). 
"(Jo) MEMBERSHIP AND CHAIRPERSON.— 
President. 
"(1) MEMBERSHIP.—The Board shall be composed of— 
"(A) five representatives from the United States Govern-
ment; and 
"(B) four representatives from private nongovernmental 
environmental, community development, scientific, and 
academic organizations with experience and expertise in 
Latin America and the Caribbean; 
to be appointed by the President. 
"(2) CHAIRPERSON.—The Board shall be headed by a chair-
person who shall be appointed by the President from among the 
representatives appointed under paragraph (IXA). 
"(c) RESPONSIBILITIES.—The Board shall— 
"(1) advise the President on the negotiations for the environ-
mental framework agreements described in subsections (a) and 
(b) of section 607; 
"(2) ensure, in consultation with the government of the appro-
priate eligible country, with nongovernmental organizations of 
such eligible country, and if appropriate, of the region, and with 
environmental, scientific, and academic leaders of such eligible 
country and, as appropriate, of the region, that a suitable body 
referred to in section 607(c) is identified; and 
"(3) review the programs, operations, and fiscal audits of the 
bodies referred to in section 607(c). 
"SEC. 611. OVERSIGHT. 
7 USC 1738j. 
"The President may designate appropriate United States agencies 
to review the implementation of programs under this title and the 
fiscal audits relating to such programs. Such oversight shall not 
constitute active management of an Environmental Fund. 
"SEC. 612. ELIGIBLE ACTIVITIES AND GRANTEES. 
7 USC 1738k. 
"(a) ELIGIBLE ENTITIES.—Activities eligible to receive assistance 
through the framework agreements entered into under section 607, 
shall include— 
"(1) activities of the tjrpe described in the Global Environ-
mental Protection Assistance Act of 1989 (22 U.S.C. 462), and— 
"(2) sigriculture-related activities, including those that provide 
for the biological prevention and control of animal and plant 
pests and diseases, to benefit the environment; and 
"(3) local community initiatives that promote conservation 
and sustainable use of the environment. 
104 STAT. 3662 
PUBLIC LAW 101-624—NOV. 28, 1990 
"(b) REGULATION.—All activities of the type referred to in subsec-
tion (a) shall, where appropriate, include initiatives that link con-
servation of natural resources with local community development. 
"(c) SETTING OF PRIORITIES.—Appropriate activities and priorities 
relating to the use of an Environmental Fund shall be set by local 
nongovernmental organizations within the appropriate eligible 
country. 
"(d) GRANTS.—Grants may be made by the body referred to in 
section 607(c) from the Environmental Fund for environmental 
purposes to— 
"(1) host country nongovernmental environmental, conserva-
tion, 
development, 
educational, 
and 
indigenous 
peoples 
organizations; 
"(2) other appropriate local or regional entities; or 
"(3) in exceptional circumstances, the government of the 
eligible country. 
"(e) PRIORITY.—In providing assistance from an Environmental 
Fund, the body established under section 607(c) within the eligible 
country shall give priority to projects that are run by nongovern-
mental organizations and other private entities, and that involve 
local communities in their planning and execution. 
"SEC. 613. ENCOURAGING MULTILATERAL DEBT DONATIONS. 
"(a) ENCOURAGING DONATIONS FROM OFFICIAL CREDITORS.—The 
President should actively encourage other official creditors of an 
eligible country to provide debt reduction to such eligible country. 
"(b) ENCOURAGING DONATIONS FROM OTHER SOURCES.—The Presi-
dent shall make every effort to insure that programs established 
through Environmental Funds are able to receive donations from 
private and public entities, and private creditors of the eligible 
country. 
"SEC. 
6
1
4
. 
ANNUAL 
REPORT 
TO 
CONGRESS. 
"Not later than December 31 of each fiscal year, the President 
shall prepare and submit to the Speaker of the House of Representa-
tives and the President Pro Tempore of the Senate an annual report 
concerning the operation of the Facility for the prior fiscal year.". 
7 u s e 1691 note. 
SEC. 1513. EFFECTIVE DATE. 
The amendment made by section 1512 shall become effective on 
January 1,1991. 
SEC. 1514. AMENDMENTS TO SECTION 416 OF THE AGRICULTURAL ACT OF 
1949. 
Section 416(b) of the Agricultural Act of 1949 (7 U.S.C. 14310))) is 
amended— 
(1) in paragraph (1), by striking "title 11" and inserting "titles 
II and III"; 
(2) in paragraph (3XBXi), by striking "401(b)" and inserting 
"403(a)"; 
(3) in paragraph 5(A), by striking "203" and inserting "406"; 
(4) in paragraph (6), by striking "203" and inserting "406"; 
and 
(5) in paragraph (7)— 
(A) by striking "title 11" in subparagraph (DXiii) and 
inserting "titles II and III"; and 
7 use 1738/. 
President. 
President. 
7 u s e 1738m. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3663 
(B) by adding at the end thereof the following new 
subparagraph: 
"(F) The provisions of sections 403(i) and 407(c) of the Agricultural 
Trade Development and Assistance Act of 1954 shall apply to dona-
tions, sales and barters of eligible commodities under this subsec-
tion.". 
SEC. 1515. CONFORMING AMENDMENTS AND TECHNICAL CHANGES. 
(a) AGRICULTURE AND FOOD ACT OF 1981.—Section 1208(dX2) of the 
Agriculture and Food Act of 1981 (7 U.S.C. 1736n) is amended by 
striking "408(a)" and inserting "407(g)". 
(b) AGRICULTURAL AND TRADE MISSIONS ACT.—Section 7(4)(A) of 
the Agricultural and Trade Missions Act (7 U.S.C. 1736bb-6) is 
amended by striking "title I and 11" and inserting "titles I, II, and 
III". 
(c) FOOD SECURITY ACT OF 1985.—Section 302 of the Food Security 
Wheat Reserve Act (7 U.S.C. 1736f-l) is amended— 
(1) in subsection (c), by striking "401(a)" and inserting "401"; 
and 
(2) in subsection (d), by striking "401(a)" and inserting "401". 
SEC. 1516. FOOD FOR PROGRESS. 
The Food for Progress Act of 1985 (7 U.S.C. 1736o) is amended— 
(1) in subsection (b)— 
(A) by striking "countries that" and inserting "develop-
ing countries, and countries that are emerging democracies, 
that", and 
(B) by striking "developing countries" and inserting "the 
governments of such countries, or with private voluntary 
organizations, nonprofit Eigricultural organizations, or co-
operatives,"; 
(2) in subsection (d) by striking "with countries"; 
(3) in subsection (eX3)— 
(A) by striking "to a developing country", and 
(B) by striking "by a developing country"; 
(4) in subsection (eX4)— 
(A) by striking "to a developing country" both places it 
appears; and 
(B) by striking "section 4010t))" and inserting "sections 
402, 403(a), 403(c), and 403(i)"; 
(5) in subsection (fXD by striking "to developing countries"; 
(6) in subsection (g) by striking '1990" and inserting "1995"; 
(7) in subsection (i) by striking "entered into with a country", 
and by inserting 
with respect to a country" after "effect"; 
(8) in subsection (k) by striking "recipient countries" and 
inserting "the recipient"; 
(9) in subsection (1) by striking "1990" and inserting "Decem-
ber 31,1995"; and 
(10) by adding at the end the following new subsections: 
"(mXD To enhance the development of private sector agriculture 
in countries receiving assistance under this Act the President may, 
in each of the fiscal years 1991 through 1995, use in addition to any 
amounts or commodities otherwise made available under this Act 
for such activities, not to exceed $10,000,000 of Commodity Credit 
Corporation funds (or commodities of an equal value owned by the 
Corporation), to provide assistance in the administration, sale, and 
monitoring of food assistance programs to strengthen private sector 
agriculture in recipient countries. 
104 STAT. 3664 
PUBLIC LAW 101-624—NOV. 28, 1990 
"(2) To carry out this subsection, the President may provide 
agricultural commodities under agreements entered into under this 
Act in a manner that uses the commodity transaction as a means of 
developing in the recipient countries a competitive private sector 
that can provide for the importation, transportation, storage, 
marketing and distribution of such commodities. 
"(3) The President may use the assistance provided under this 
subsection and local currencies derived from the sale of commodities 
under paragraph (2) to design, monitor, and administer activities 
undertaken with such assistance, for the purpose of strengthening 
or creating the capacity of recipient country private enterprises to 
undertake commercial transactions, with the overall goal of increas-
ing potential markets for United States agricultural commodities.". 
7 use 1706. 
SEC. 1517. DEBT-FOR-HEALTH-AND-PROTECTION SWAP. 
(a) DEFINITION.—For purposes of this section, the term "debt-for-
health-and-protection swap" means the voluntary cancellation of 
the foreign debt of the government of a foreign country in exchange 
for— 
(1) the making available by such country, to a grantee under 
subsection Qy), local currencies (including through the issuance 
of bonds) to be used only for eligible projects involving the 
research, study, prevention, or control of animal and plant pests 
and diseases in that country; or 
(2) the financial and policy commitment of such country to 
research, study, prevent, or control animal and plant pests and 
diseases in that country. 
(b) ASSISTANCE FOR COMMERCIAL DEBT SWAP.— 
(1) GRANTS.—The Secretary is authorized to furnish assist-
ance in the form of grants, on such terms and conditions as the 
Secretary determines to be necessary and appropriate, to 
United States and foreign nongovernmental organizations, 
including colleges and universities, for the purchase of dis-
counted external commercial debt of a foreign government (on 
the secondary market) to be canceled under the terms of an 
agreement that is entered into by the Secretary with that 
government as part of a debt-for-health-and-protection swap. 
(2) INTEREST ON GRANTS.—The recipient of a grant under this 
section (or any subgrantee of such recipient) may retain the 
interest earned on the proceeds of any resulting debt-for-health-
and-protection swap if such recipient (or subgrantee) disburses 
such funds for approved program purposes, and such interest 
need not be deposited in the Treasury of the United States and 
is not subject to further appropriations by Congress. 
(3) REINVESTMENT OF INTEREST.—Interest accrued in accord-
ance with paragraph (2) shall be reinvested by the recipient of 
the grant under this section in an approved project in the host 
country or used for the establishment of an endowment for the 
purpose for which the grant was provided. 
(c) ELIGIBLE PROJECTS.— 
(1) MUTUAL BENEFIT.—The Secretary shall ensure that a debt-
for-health-and-protection swap under this section is designed to 
be of mutual benefit to both the agricultural sector of the 
United States and the agricultural sector of the recipient coun-
try. 
(2) IDENTIFICATION OF IMMEDIATE AREAS OF NEED.—In coopera-
tion with the Agency for International Development, inter-
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3665 
national organizations, domestic or foreign nongovernmental 
organizations, colleges, and universities, the Secretary shall 
attempt to identify those areas which, because of their im-
minent threat to agriculture, are in particular need of imme-
diate attention in terms of supporting and promoting the 
prevention or control of plant and animal pests and diseases in 
the Western Hemisphere. 
(d) TERMS AND CONDITIONS OF THE EXCHANGE.— 
(1) REGULATIONS.—Not later than 180 days after the date of 
enactment of this Act, the Secretary shall issue regulations to 
implement this section. Such regulations shall include provi-
sions— 
(A) that describe the general terms and conditions nec-
essary for any proposed exchange to gain approval under 
paragraph (2); and 
(B) to protect against the use of any assistance provided 
under subsection 0?) that is contrary to the provisions of 
this section. 
(2) OTHER ASSISTANCE.—Grants made under this section are 
intended to supplement, and not to be a substitute for, any 
assistance that is otherwise available to a foreign country from 
the Department of Agriculture. 
(3) PROHIBITION.—The Department of Agriculture is prohib-
ited from accepting any title or interest in any project or 
program under this section, or any interest accrued on the 
amount of the grant, as a condition of the debt-for-health-and-
protection swap, 
(e) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 
be appropriated such sums as may be necessary to carry out this 
section. 
Subtitle B—Shipping Provisions 
SEC. 1521. EXEMPTION OF AMERICAN GREAT LAKES VESSELS FROM 46 USC app. 
RESTRICTION ON CARRIAGE OF PREFERENCE CARGOES. 
^ 24 Iq. 
(a) EXEMPTION FROM RESTRICTION.—The restriction described in 
subsection (b) shall not apply to an American Great Lakes vessel 
while it is so designated. 
(b) RESTRICTION DESCRIBED.—The restriction referred to in subsec-
tion (a) is the restriction in section 901(bXl) of the Merchant Marine 
Act, 1936 (46 U.S.C. App. 1241(b)(1)), that a vessel that is— 
(1) built outside the United States; 
(2) rebuilt outside the United States; or 
(3) documented under any foreign registry; 
shall not be a privately owned United States-flag commercial vessel 
under that section until the vessel is documented under the laws of 
the United States for a period of 3 years. 
* 
(c) SUBSEQUENT APPUCATION OF RESTRICTION.—Upon the revoca-
tion or termination of a designation of a vessel as an American 
Great Lakes vessel, the restriction described in subsection (b) shall 
apply as if the vessel had never been a vessel documented under the 
laws of the United States. 
SEC. 1522. DESIGNATION OF AMERICAN GREAT LAKES VESSELS. 
46 USC app. 
(a) IN GENERAL.—The Secretary shall designate a vessel as an 
American Great Lakes vessel for purposes of this subtitle i
f
— 
104 STAT. 3666 
PUBLIC LAW 101-624—NOV. 28, 1990 
(1) the vessel is documented under the laws of the United 
States; 
(2) the Secretary receives an application for such designation 
submitted in accordance with regulations issued by the Sec-
retary under subsection (d); 
(3) the owner of the vessel enters into an agreement in 
accordance with subsection O
t
>
)
; 
(4XA) the vessel is not more than 6 years old, and not less 
than 1 year old, on the effective date of the designation; or 
(B) the vessel is not more than 11 years old, and not less thein 
1 year old on the effective date of the designation, and the 
Secretary determines that suitable vessels are not available for 
providing the type of service for which the vessel will be used 
after designation; and 
(5) the vessel has not been previously designated as an Amer-
ican Great Lakes vessel. 
(b) CONSTRUCTION AND PURCHASE AGREEMENT.—As a condition of 
designating a vessel as an American Great Lakes vessel under this 
section, the Secretary shall require the person who will be the 
owner of the vessel at the time of that designation to enter into an 
agreement with the Secretary which provides that if the Secretary 
determines that the vessel is necessary to the defense of the United 
States, the United States Government shall have, during the 120-
day period following the date of any revocation of such designation 
under section 1524, an exclusive right to purchase the vessel for a 
price equal to— 
(1) the approximate world market value of the vessel; or 
(2) the cost of the vessel to the owner less an amount rep-
resenting reeisonable depreciation of the vessel; 
whichever is greater. 
(c) CERTAIN FOREIGN REGISTRY AND SALE NOT PROHIBITED.—Not-
withstanding any other provision of law, if the United States does 
not purchase a vessel in accordance with its right of purchase under 
a construction and purchase agreement under subsection (b), the 
owner of the vessel shall not be prohibited from— 
(1) transferring the vessel to a foreign registry; or 
(2) selling the vessel to a person who is not a citizen of the 
United States. 
(d) ISSUANCE OF REGULATIONS.—Not later than 60 days after the 
date of the enactment of this Act, the Secretary shall issue regula-
tions establishing requirements for submission of applications for 
designation of vessels as American Great Lakes vessels under this 
section. 
46 use app. 
SEC. 1523. RESTRICTIONS ON OPERATIONS OF AMERICAN GREAT LAKES 
1241s. 
VESSELS. 
(a) IN GENERAL.—Subject to subsection 0?), an American Great 
Lakes vessel shall not be used— 
(1) to engage in trade— 
(A) from a port in the United States that is not located on 
the Great Lakes; or 
(B) between ports in the United States; 
(2) to carry bulk cargo (as that term is defined in section 3 of 
the Shipping Act of 1984 (46 U.S.C. App. 1702(4)) which is 
subject to section 9010t)) or 901b of the Merchant Marine Act, 
1936 (46 U.S.C. App. 1241(b) or 1241f), or section 2631 of title 10, 
United States Code; or 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3667 
(3) to provide any service other than ocean freight service— 
(A) as a contract carrier; or 
(B) as a common carrier on a fixed advertised schedule 
offering frequent saihngs at regular intervals in the foreign 
commerce of the United States. 
(b) OFF-SEASON CARRIAGE EXCEPTION.— 
(1) IN GENERAL.—Subject to paragraph (2), an American Great 
Lakes vessel may be used to engage in trade otherwise prohib-
ited by subsection (aXlXA) for not more than 90 days during any 
12-month period. 
(2) LIMITATION.—An American Great Lakes vessel shall not be 
used during the Great Lakes shipping season to engage in trade 
referred to in paragraph (1), 
SEC. 1524. REVOCATION AND TERMINATION OF DESIGNATION. 
46 USC app. 
1241t 
(a) REVOCATION.—The Secretary, after notice and an opportunity 
for a hearing, may revoke the designation of a vessel under section 
1522 as an American Great Lakes vessel if the Secretary determines 
that— 
(1) the vessel does not meet a requirement for such designa-
tion; 
(2) the vessel has been operated in violation of this subtitle; or 
(3) the owner or operator of the vessel has violated a construc-
tion and purchase agreement under section 1522(b). 
0?) CIVIL PENALTY.—The Secretary, after notice and an oppor-
tunity for a hearing, may assess a civil penalty of not more than 
$1,000,000 against the owner of an American Great Lakes vessel, for 
any act for which the designation of that vessel as an American 
Great Lakes vessel may be revoked under subsection (a). 
(c) TERMINATION OF DESIGNATION.—The Secretary may terminate 
the designation of a vessel as an American Great Lakes vessel under 
this subtitle upon petition and a showing of good cause for that 
termination by the owner of the vessel. The Secretary may impose 
conditions or restrictions in a termination order to prevent signifi-
cant adverse effects on other United States-flag vessel operators. 
SEC. 1525. ALLOCATION BASED ON LOWEST LANDED COST. 
Section 901b(c) of the Merchant Marine Act, 1936 (46 U.S.C. App. 
1241f(c)) is amended— 
(1) in paragraph (2XA) by striking "(A)"; 
(2) in paragraph (2) by striking subparagraph (B); and 
(3) by adding at the end the following: 
"(3XA) Subject to subparagraph (B), in administering sections 
901(b) and 901b (46 U.S.C. App. 1241(b) and 1241f), and consistent 
with those sections, the Commodity Credit Corporation shall take 
such steps as may be necessary and practicable without detriment to 
any port range to allocate, on the principle of lowest landed cost 
without regard to the country of documentation of the vessel, 50 
percent of the bagged, processed, or fortified commodities furnished 
pursuant to title II of the Agricultural Trade Development and 
Assistance Act of 1954 (7 U.S.C. 1751 et seq.). 
"(B) In carrjdng out this paragraph, the Commodity Credit Cor-
poration shall not allocate to the Great Lakes port range in any year 
a percentage share of commodities referred to in subparagraph (A) 
that is greater than the share experienced by that port range in 
1984, as determined by the Secretary of Agriculture. 
104 STAT. 3668 
PUBLIC LAW 101-624—NOV. 28, 1990 
46 use app. 
1241U. 
46 use app. 
1241v. 
"(4) Amounts of cargo allocated to ports in the Great Lakes port 
range pursuant to paragraph (3) shall not be exported from a 
different port range except as necessary to meet United States-flag 
transportation requirements of sections 901(b) and 901b, in which 
•case within the same year the Commodity Credit Corporation shall 
take such steps as are necessary and practicable without detriment 
to any port range to ensure the export from the Great Lakes port 
range of an amount of tonnage of commodities referred to in para-
graph (3XA) that is not required to be transported on United States-
flag vessels, that is equal to the amount of tonnage diverted for 
export from other port ranges. 
"(5) Any determination of nonavailability of United States-flag 
vessels resulting from the application of this subsection shall not 
reduce the gross tonnage of commodities required by sections 901(b) 
and 901b to be transported on United States-flag vessels.". 
SEC. 1526. STUDY AND REPORT. 
(a) STUDY.—The Secretary, in consultation with the Secretary of 
Agriculture, shall conduct a study on the implementation of this 
subtitle. The study shall include analysis of— 
(1) the effects of that implementation on diversions of cargo to 
and from the Great Lakes port range and any resulting effects 
on the cost of transporting commodities furnished pursuant to 
title II of the Agricultural Trade Development and Assistance 
Act of 1954 (7 U.S.C. 1751 et seq.); and 
(2) whether the authority to designate vessels as American 
Great Lakes vessels has increased United States-flag vessel 
service to Great Lakes ports. 
(b) REPORT.—Not later than December 31, 1994, the Secretary 
shall submit a report to the Congress on the findings of the study 
under subsection (a). 
SEC. 1527. DEFINITIONS. 
As used in this subtitle— 
(1) AMERICAN GREAT LAKES VESSEL.—The term "American 
Great Lakes vessel" means a vessel which is so designated by 
the Secretary in accordance with section 1522. 
(2) GREAT LAKES.—The term "Great Lakes" means Lake Supe-
rior; Lake Michigan; Lake Huron; Lake Erie; Lake Ontario; the 
Saint Lawrence River west of Saint Regis, New York; and their 
connecting and tributary waters. 
(3) GREAT LAKES SHIPPING SEASON.—The term "Great Lakes 
shipping season" means the period of each year during which 
the Saint Lawrence Seaway is open for navigation by vessels, as 
declared by the Saint Lawrence Seaway Development Corpora-
tion created by the Act of May 13, 1954 (33 U.S.C. 981 et seq.). 
(4) SECRETARY.—The term "Secretary" means the Secretary of 
Transportation. 
Subtitle C—Export Promotion 
SEC. 1531. AMENDMENT TO THE AGRICULTURAL TRADE ACT OF 1978. 
The Agricultural Trade Act of 1978 (7 U.S.C. 1761 et seq.) is 
amended to read as follows: 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3669 
"SECTION 1. SHORT TITLE. 
-'' ' 
fr«0Ofr^ ^ 
Agricultural 
Trade Act of 
"This Act may be cited as the 'Agricultural Trade Act of 1978'. 1978. 
7 use 5601 note. 
"TITLE I—GENERAL PROVISIONS 
"SEC. 101. PURPOSE. 
7 use 5601. 
"It is the purpose of this Act to increase the profitability of 
farming and to increase opportunities for United States farms and 
agricultural enterprises by— 
"(1) increasing the effectiveness of the Department of Agri-
culture in agricultural export policy formulation and im-
plementation; 
"(2) improving the competitiveness of United States agricul-
tural commodities and products in the world market; and 
"(3) providing for the coordination and efficient implementa-
tion of all agricultural export programs. 
"SEC. 102. DEFINITIONS. 
7 USC 5602. 
"As used in this Act— 
"(1) 
AGRICULTURAL 
COMMODITY.—The term 
'agricultural 
commodity' means any agricultural commodity, food, feed, or 
fiber, and any product thereof. 
"(2) DEVELOPING COUNTRY.—The term 'developing country' 
means a country that— 
"(A) has a shortage of foreign exchange earnings £ind has 
difficulty accessing sufficient commercial credit to meet all 
of its food needs, as determined by the Secretary; and 
"(B) has the potential to become a commercial market for 
agricultural commodities. 
"(3) SECRETARY.—The term 'Secretary' means the Secretary of 
Agriculture. 
"(4) SERVICE.—The term 'Service' means the Foreign Agricul-
tural Service of the Department of Agriculture. 
"(5) UNFAIR TRADE PRACTICE.— 
"(A) IN GENERAL.—Subject to subparagraph (B), the term 
'unfair trade practice' means any act, policy, or practice of 
a foreign country that— 
"(i) violates, or is inconsistent with, the provisions of, 
or otherwise denies benefits to the United States under, 
any trade agreement to which the United States is a 
party; or 
"(ii) is unjustifiable, unreasonable, or discriminatory 
and burdens or restricts United States commerce. 
"(B) CONSISTENCY WITH 1974 TRADE ACT.—Nothing in this 
Act may be construed to authorize the Secretary to make 
any determination regarding an unfair trade practice that 
is inconsistent with section 301 of the Trade Act of 1974 (19 
U.S.C. 2411). 
"(6) UNITED STATES.—The term 'United States' includes each 
of the States, the District of Columbia, Puerto Rico, and the 
territories and possessions of the United States. 
"(7) UNITED STATES AGRICULTURAL COMMODITY.—The term 
'United States agricultural commodity' means— 
"(A) with respect to any agricultural commodity other 
than a product of an agricultural commodity, an agricul-
104 STAT. 3670 
PUBLIC LAW 101-624—NOV. 28, 1990 
tural commodity entirely produced in the United States; 
and 
"(B) with respect to a product of an agricultural commod-
i t y -
"(i) a product all of the agricultural components of 
which are entirely produced in the United States; or 
"(ii) any other product the Secretary may designate 
that contains any agricultural component that is not 
entirely produced in the United States if— 
'(I) such component is an added, de minimis 
component, 
"(II) such component is not commercially pro-
duced in the United States, and 
"(III) there is no acceptable substitute for such 
component that is commercially produced in the 
United States. 
For purposes of this paragraph, fish entirely produced in the 
United States include fish harvested by a documented fishing 
vessel as defined in title 46, United States Code, in waters that 
are not waters (including the territorial sea) of a foreign coun-
try. 
7 use 5603. 
"SEC. 103. DEVELOPMENT OF AGRICULTURAL TRADE STRATEGY. 
"(a) IN GENERAL.— 
"(1) DEVELOPMENT OF MULTI-YEAR STRATEGY.—The Secretary 
shall develop a long-term agricultural trade strategy for the 
United States to guide the Secretary in the implementation of 
Federgd programs designed to promote the export of United 
States agricultural commodities. 
"(2) FREQUENCY.—A long-term agricultural trade strategy 
shall be developed under paragraph (1) for each 3-year fiscal 
period, beginning on October 1,1991. 
"(3) CONSULTATION.—In preparing the strategy under para-
graph (1), the Secretary shall consult with— 
"(A) the United States Trade Representative to ensure 
that such strategy is coordinated with the annual national 
trade policy agenda under section 163 of the Trade Act of 
1974 (19 U.S.C. 2122); 
"(B) the Agricultural Policy Advisory Committee and 
Agricultural Technical Advisory Committee established 
pursuant to section 135 of the Trade Act of 1974 (19 U.S.C. 
2155); and 
"(C) other interested agencies and persons. 
"(b) GOALS.—The long-term agricultural trade strategy estab-
lished under subsection (a) shall be designed to ensure— 
"(1) the growth of exports of United States agricultural 
commodities; 
"(2) the efficient, coordinated use of Federal programs de-
signed to promote the export of United States agricultural 
commodities; 
"(3) the provision of food assistance and the improvement in 
the commercial potential of markets for United States agricul-
tural commodities in developing countries; and 
"(4) the maintenance of traditional markets for United States 
agricultural commodities. 
"(c) CONTENTS.—In developing the long-term agricultural trade 
strategy under subsection (a), the Secretary shall— 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3671 
"(1) establish, for the 3-year period for which the strategy is 
developed, trade goals for the desired levels of exports of United 
States Eigricultural commodities, including goals for high value, 
process^ agricultural commodities; 
"(2) develop multiyear plans for the implementation and 
coordination of United States export assistance programs and 
foreign food assistance programs to meet such agricultural 
trade goals; 
"(3) recommend long-term strategies for growth in agricul-
tural trade and exports, taking into account— 
"(A) United States competitiveness in the export of agri-
cultural commodities; 
"(B) United States participation in bilateral and multilat-
eral trade negotiations; 
"(C) the effects of exchange rate fluctuations and unfair 
trading practices by foreign governments that limit access 
to such foreign markets; 
"(D) distribution, financing, and other requirements nec-
essary to trade in nonmarket economies; 
"(E) the differences in the markets of developed and 
developing countries (including the amount of outstanding 
national debt of particular countries); and 
"(F) transportation and shipping factors; 
"(4) design strategies to make the United States a primary 
and dependable supplier of agricultural commodities in the 
world market; 
"(5) estimate the level of expenditures and the impact of 
Federal export programs on exports of United States agricul-
tural commodities in the priority markets identified under 
subsection (d); and 
"(6) consider such other factors as the Secretary determines 
appropriate. 
'(d) ESTABLISHMENT OF PRIORITY MARKETS.— 
"(1) DESIGNATION OF GROWTH MARKETS.—The Secretary shall 
develop a list, for inclusion in the long-term agricultural trade 
strategy developed under subsection (a), of not less than 15 
countries (or groups of countries) that are most likely to emerge 
as growth markets for United States agricultural commodities 
during the 3- and 6-fiscal year periods beginning on October 1, 
1991. 
"(2) PRIORITY FOR GROWTH MARKETS.—The Secretary shall 
designate countries identified on the list developed under para-
graph (1) as priority markets for Federal programs designed to 
promote the export of United States agricultural commodities 
(other than those programs designed to provide food assistance 
under the Agricultural Trade Development and Assistance Act 
of 1954 (as amended) and the program under section 301. 
"(3) EsTABUSHMENT OF MARKET PLANS.—The Secretary shall 
develop individual market plans for each priority market des-
ignated under paragraph (2). Each such market plan shall set 
forth— 
"(A) the trade goals for the desired levels of agricultural 
exports from the United States to each priority market; and 
(B) specific plans to assist in the export of United States 
agricultural commodities to, and develop markets for such 
commodities in, each priority market through Federal pro-
grams designed to promote the export of such commodities. 
104 STAT. 3672 
PUBLIC LAW 101-624—NOV. 28, 1990 
"(e) REVIEW OF STRATEGY.—Not less than once every 3 years, the 
Secretary shall review the agricultural trade performance of the 
United States based on the applicable long term agricultural trade 
strategy. 
"(f) CONFIDENTIALITY.—The Secretary may determine that part of 
the agricultural trade strategy prepared under this section shall not 
be released to the general public if— 
"(1) the Secretary determines that the release of such 
information would disadvantage the United States in inter-
N
. 
national trade negotiations or with respect to its competitors in 
specific foreign markets; or 
"(2) the Secretary determines that any such information is 
determined to be confidential business information. 
"(g) INFORMATION.—Nothing in this section shall be construed to 
authorize the withholding of information from Congress. 
"(h) TERMINATION.—The provisions of this section shall be effec-
tive for the period beginning January 1, 1991, and ending December 
31,1995. 
7 use 5604. 
"SEC. 104. PRESERVATION OF TRADITIONAL MARKETS. 
"The Secretary shall, in implementing progrsims of the Depart-
ment of Agriculture intended to encourage or assist exports of 
agricultural commodities, seek to preserve traditional markets for 
United States agricultural commodities. 
7 use 5605. 
"SEC. 105. INDEPENDENCE OF AUTHORITIES. 
"Each authority granted under this Act shall be in addition to, 
and not in lieu of, any authority granted to the Secretary or the 
Commodity Credit Corporation under £iny other provision of law. 
"TITLE II—AGRICULTURAL EXPORT 
PROGRAMS 
7 use 5621. 
"SEC. 201. DIRECT CREDIT SALES PROGRAM. 
"(a) SHORT-TERM PROGRAM.—To promote the sale of agricultural 
commodities, the Commodity Credit Corporation may finance the 
commercial export sale of such commodities from privately owned 
stocks on credit terms for not to exceed a 3-year period. 
"(b) INTERMEDIATE-TERM PROGRAM.—Subject to subsection (c), to 
promote the sale of agricultural commodities the Commodity Credit 
Corporation may finance the commercial export sales of agricultural 
cgmmodities from privately owned stocks on credit terms for a 
period of not less than 3 years nor in excess of 10 years in a manner 
that will directly benefit United States agricultural producers. 
"(c) DETERMINATIONS.—The Commodity Credit Corporation shall 
not finance an export sale under subsection (b) unless the Secretary 
determines that such sale will— 
'TD develop, expand, or maintain the importing country as a 
foreign market, on a long-term basis, for the commercial sale 
and export of United States agricultural commodities, without 
displacing normal commercial sales; 
"(2) improve the capability of the importing country to pur-
chase and use, on a long-term basis. United States agricultural 
commodities; or 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3673 
"(3) otherwise promote the export of United States agricul-
tural commodities. 
"(d) USE OF PROGRAM.— 
"(1) GENERAL USES.—The Commodity Credit Corporation may 
use export sales financing authorized under this section— 
"(A) to increase exports of agricultural commodities; 
"(B) to compete against foreign agricultural exports; 
"(C) to assist countries, particularly developing countries, 
in meeting their food and fiber needs; and 
"(D) for such other purposes as the Secretary determines 
appropriate consistent with the provisions of subsection (c). 
"(2) GENERAL RESTRICTIONS.—Export sales 
financing 
au-
thorized under this section shedl not be used for foreign aid, 
foreign policy, or debt rescheduling purposes. The provisions of 
the cargo preference laws shall not apply to export sales fi-
nanced under this section. 
"(e) TERMS OF CREDIT ASSISTANCE.—Any contract for the financing 
of exports by the (Commodity Credit (llorporation under this section 
shall include— 
"(1) a requirement that repajnment shall be made in dollars 
with interest accruing thereon as determined appropriate by 
the Secretary; and 
"(2) a requirement, if the Secretary determines such require-
ment appropriate to protect the interests of the United States, 
that an initial pa3anent be made by the purchaser at the time of 
sale or shipment of the agricultural commodity that is subject to 
the contract. 
"SEC. 202. EXPORT CREDIT GUARANTEE PROGRAM. 
7 USC 5622. 
"(a) SHORT-TERM CREDIT GUARANTEES.—The Ck)mmodity Credit 
(Dorporation may guarantee the repayment of credit made available 
to finance commercial export sales of agricultural commodities from 
privately owned stocks on credit terms that do not exceed a 3-year 
period. 
"(b) 
INTERMEDIATE-TERM CREDIT GUARANTEES.—Subject to 
the 
provisions of subsection (c), the C!ommodity Credit Corporation may 
guarantee the repajnnent of credit made available by financial 
institutions in the United States to finance commercial export sales 
of agricultural commodities from privately owned stocks on credit 
terms that are for not less than a 3-year period nor for more than a 
10-year period in a manner that will directly benefit United States 
agricultural producers. 
"(c) REQUIRED DETERMINATIONS.—The Clommodity Credit Corpora-
tion shall not guarantee under subsection (b) the repayment of 
credit made available to finance an export sale unless the Secretary 
determines that such sale will— 
"(1) develop, expand, or maintain the importing country as a 
foreign market, on a long-term basis, for the commercial sale 
and export of United States agricultural commodities, without 
displacing normal commercial sales; 
' (2) improve the capability of the importing country to pur-
chase and use, on a long-term basis. United States agricultural 
commodities; or 
"(3) otherwise promote the export of United States agricul-
tural commodities. 
"(d) PURPOSE OF PROGRAM.—The Commodity Credit Corporation 
may use export credit guarantees authorized under this section— 
104 STAT. 3674 
PUBLIC LAW 101-624—NOV. 28, 1990 
"(1) to increase exports of agricultural commodities; 
"(2) to compete against foreign agricultural exports; 
"(3) to assist countries, particularly developing countries, in 
meeting their food and fiber needs; and 
"(4) for such other purposes as the Secretary determines 
appropriate, consistent with the provisions of subsection (c). 
"(e) RESTRICTIONS ON USE OF CREDIT GUARANTEES.—Export credit 
guarantees authorized by this section shall not be used for foreign 
aid, foreign policy, or debt rescheduling purposes. The provisions of 
the cargo preference laws shall not apply to export sales with 
respect to which credit is guaranteed under this section. 
"(f) RESTRICTIONS.—The Commodity Credit Corporation shall not 
make credit guarantees available in connection with sales of agricul-
tureil commoidities to any country that the Secretary determines 
CEinnot adequately service the debt associated with such sale. 
"(g) TERMS.—Export credit guarantees issued pursuant to this 
section shall contain such terms and conditions as the Commodity 
Credit Corporation determines to be necessary. 
"(h) 
FOREIGN 
AGRICULTURAL COMPONENTS.—The 
Commodity 
Credit Corporation shall finance or guarantee under this section 
only United States agricultural commodities. The Commodity Credit 
Corporation shall not finance or guarantee under this section the 
value of any foreign agricultural component. 
"(i) INELIGIBILITY OF FINANCIAL INSTITUTIONS.—A financial institu-
tion shall be ineligible to receive an assignment of a credit guaran-
tee or proceeds payable under a credit guarantee issued by the 
Commodity Credit Corporation under this section if it is determined 
by the Corporation that such financial institution— 
"(1) is not in a sound financial condition; 
"(2) is the financial institution issuing the letter of credit or a 
subsidiary of such institution; or 
"(3) is owned or controlled by an entity that owns or controls 
that financial institution issuing the letter of credit, 
"(j) CONDITIONS FOR FISH AND PROCESSED FISH PRODUCTS.—In 
making available any guarsmtees of credit under this section in 
connection with sales of fish and processed fish products, the Sec-
retary shall make such guarantees available under terms and condi-
tions that are comparable to the terms and conditions that apply to 
guarantees provided with respect to sales of other agricultural 
commodities under this section. 
7 use 5623. 
"SEC. 203. MARKET PROMOTION PROGRAM. 
"(a) IN GENERAL.—The Commodity Credit Corporation shall estab-
lish and carry out a program to encourage the development, mainte-
nance, and expansion of commercial export markets for gigricultural 
commodities through cost-share assistance to eligible trade organiza-
tions that implement a foreign market development program. 
"(b) TYPE OF ASSISTANCE.—Assistance under this section may be 
provided in the form of funds of, or commodities owned by, the 
Commodity Credit Corporation, as determined appropriate by the 
Secretary. 
"(c) REQUIREMENTS F
O
R PARTICIPATION.— 
"(1) IN GENERAL.—To be eligible for cost-share assistance 
under this section, an orgemization shall— 
"(A) be an eligible trade organization; 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3675 
"(B) prepare and submit a marketing plan to the Sec-
retary that meets the guidelines governing such plans 
established by the Secretary; and 
"(C) meet any other requirements established by the 
Secretary. 
"(2) PRIORITY BASIS FOR EXPORT ASSISTANCE.—The Secretary 
shall provide export assistance under this section on a priority 
basis in the case of an unfair trade practice. 
"(d) EuGiBLE TRADE ORGANIZATIONS.—An eligible trade organiza-
tion shall be— 
"(1) a United States agricultural trade organization or re-
gional State-related organization that promotes the export and 
sale of agricultural commodities and that does not stand to 
profit directly from specific sales of Eigricultural commodities; 
"(2) a cooperative organization or State agency that promotes 
the sale of agricultural commodities; or 
"(3) a private organization that promotes the export and sale 
of agricultural commodities if the Secretary determines that 
such organization would significantly contribute to United 
States export market development. 
"(e) APPROVED MARKETING PLAN.— 
"(1) IN GENERAL—A marketing plan submitted by an eligible 
trade organization under this section shall describe the advertis-
ing or other market oriented export promotion activities to be 
carried out by the eligible trade organization with respect to 
which assistance under this section is being requested. 
"(2) REQUIREMENTS.—To be approved by the Secretary, a 
marketing plan submitted under this subsection shall— 
"(A) specifically describe the manner in which assistance 
received by the eligible trade organization in conjunction 
with funds and services provided by the eligible trade 
organization will be expended in implementing the market-
ing plan; 
"(B) establish specific market goals to be achieved as a 
result of the marketing promotion program; and 
"(C) contain whatever additional requirements are deter-
mined by the Secretary to be necessary. 
"(3) AMENDMENTS.—A marketing plan may be amended by 
the eligible trade organization at any time, with the approval of 
the Secretary. 
"(4) BRANDED PROMOTION.—An agreement entered into under 
this section may provide for the use of branded advertising to 
promote the sale of agricultural commodities in a foreign coun-
try under such terms and conditions as may be established by 
the Secretary. 
"(f) OTHER TERMS AND CONDITIONS.— 
"(1) MULTI-YEAR BASIS.—The Secretary may provide assistance 
under this section on a multi-year basis, subject to annual 
review by the Secretary for compliance with the approved 
marketing plan. 
"(2) TERMINATION OF ASSISTANCE.—The Secretary may termi-
nate any assistance made, or to be made, available under this 
section if the Secretary determines that— 
"(A) the eligible trade organization is not adhering to the 
terms and conditions of the program established under this 
section; 
-194 O - 91 - 12 : QL 3 Part 5 
104 STAT. 3676 
PUBLIC LAW 101-624—NOV. 28, 1990 
"(B) the eligible trade organization is not implementing 
the approved marketing plan or is not adequately meeting 
the established goals of the marketing promotion progrsmi; 
"(C) the eligible trade organization is not adequately 
contributing its own resources to the marketing promotion 
program; 
"(D) the unfair trade practice that was the basis of the 
provision of assistance has been discontinued and market-
ing assistance is no longer required to offset its effects; or 
"(E) the Secretary determines that termination of assist-
ance in a particular instance is in the best interests of the 
program. 
"(3) EVALUATIONS.—The Secretary shall monitor the expendi-
ture of funds received under this section by recipients of such 
funds. The Secretary shall make evaluations of such expendi-
ture, including— 
"(A) an evaluation of the effectiveness of the program in 
developing or maintaining markets for United States agri-
cultural commodities; 
"(B) aa evaluation of whether assistance provided under 
this section is necessary to maintain such markets; and 
"(C) a thorough accounting of the expenditure of such 
funds by the recipient. 
The Secretary shall make an initial evaluation of expenditures 
of a recipient not later than 15 months after the initial provi-
sion of funds to the recipient. 
"(g) LEVEL OF MARKETING ASSISTANCE.— 
"(1) IN GENERAL.—The Secretary shall justify in writing the 
level of assistance provided to an eligible trade organization 
under the program under this section and the level of cost-
sharing required of such organization. 
"(2) LIMITATION.—Assistance provided under this section for 
activities described in subsection (eX4) shall not exceed 50 per-
cent of the cost of implementing the marketing plan, except 
that the Secretary may determine not to apply such limitation 
in the case of agricultural commodities with respect to which 
there has been a favorable decision by the United States Trade 
Representative under section 301 of the Trade Act of 1974. 
Criteria for determining that the limitation shall not apply 
shall be consistent and documented. 
"(3) STAGED REDUCTION IN ASSISTANCE.—In the case of partici-
pants that received assistance under section 1124 of the Food 
Security Act of 1985 prior to the date of enactment of this Act 
and with respect to which assistance under this section would 
be limited under paragraph (2), any such reduction in assistance 
shall be phased down in equal increments over a 5-year period. 
7 u s e 5624. 
"SEC. 204. BARTER OF AGRICULTURAL COMMODITIES. 
"(a) IN GENERAL.—The Secretary or the Commodity Credit Cor-
poration may provide eligible commodities in barter for foreign 
products under such terms and conditions as the Secretary or the 
Corporation shall prescribe. 
"Ot)) ELIGIBLE COMMODITIES.—Unless otherwise specified, eligible 
commodities shall include— 
"(1) agricultural commodities acquired by the Commodity 
Credit Corporation through price support operations; and 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3677 
"(2) agricultural commodities acquired by the Secretary or the 
Commodity Credit Corporation in the normal course of business 
and available for disposition. 
"(c) BARTER BY EXPORTERS OF AGRICULTURAL COMMODITIES.— 
"(1) PURPOSE.—The Secretary or the Commodity Credit Cor-
poration shall encourage exporters of agricultural commodities 
to barter such commodities for foreign products— 
"(A) to acquire such foreign products needed by such 
exporters; and 
*(B) to develop, maintain, or expand foreign markets for 
United States agricultural exports. 
"(2) EuGiBLE ACTIVITIES.—The Secretary or the Commodity 
Credit Corporation may provide eligible commodities to export-
ers to assist such exporters in barter transactions. 
"(3) TECHNICAL ASSISTANCE.—The Secretary or the Commodity 
Credit Corporation shall provide technical advice and assistance 
relating to the barter of agricultural commodities to any United 
States exporter who requests such advice or assistance. 
"(d) TRANSFER OF FOREIGN PRODUCTS TO OTHER GOVERNMENT 
AGENCY OR PRIVATE PARTIES.—The Secretary or the (Dommodity 
Credit (Corporation may transfer any foreign products that the 
Secretary or such (Corporation obtains through barter activities to 
other government agencies if the Corporation receives assurances 
that it will receive full reimbursement from the agency within the 
same fiscal year in which such transfer occurs. 
"(e) CORPORATION AUTHORITY NOT LIMITED.—Nothing contained in 
this section shall limit the authority of the C!ommodity Credit 
(Corporation to acquire, hold, or dispose of such foreign materials as 
such (Corporation determines appropriate in carrjdng out the func-
tions and protecting the assets of the Corporation. 
"(f) PROHIBITED ACTIVITIES.—The Secretary or the (Commodity 
Credit (Corporation shall take reasonable precautions to prevent the 
misuse of eligible commodities in a barter or exchange program, 
including activities that— 
"(1) displace or interfere with commercial sales of United 
States agricultural commodities that otherwise might be made; 
"(2) unduly disrupt world prices of agricultural commodities 
or the normal patterns of commercial trade with recipient 
countries; or 
"(3) permit the resale or transshipment of eligible commod-
ities to countries other than the intended recipient country. 
"SEC. 205. COMBINATION OF PROGRAMS. 
7 USC 5625. 
"The (Commodity Credit Corporation may carry out a program 
under which commercial export credit guarantees available under 
section 202 are combined with direct credits from the (Commodity 
Credit Corporation under section 201 to reduce the effective rate of 
interest on export sales of agricultural commodities. 
''Subtitle B—Implementation 
"SEC. 211. FUNDING LEVELS. 
7 USC 5641. 
"(a) DIRECT CREDIT PROGRAMS.—The (Commodity Credit Corpora-
tion may make available for each fiscal year such funds of the 
Commodity Credit (Corporation as it determines necessary to carry 
out any direct credit program established under section 201. 
104 STAT. 3678 
PUBLIC LAW 101-624—NOV. 28, 1990 
"Ot)) EXPORT CREDIT GUARANTEE PROGRAMS.— 
"(1) SHORT-TERM GUARANTEES.— 
"(A) MINIMUM AMOUNTS.—The Commodity Credit Cor-
poration shall make available for each of the fiscal years 
1991 through 1995 not less than $5,000,000,000 in credit 
guarantees under section 202(a). 
"(B) LIMITATION ON ORIGINATION FEE.—Notwithstanding 
any other provision of law, the Secretary may not charge an 
origination fee with respect to any credit guarantee trans-
action under section 202(a) in excess of an amount equal to 
one percent of the amount of credit extended under the 
transaction. 
"(2) INTERMEDIATE-TERM CREDIT GUARANTEES.—The Commod-
ity Credit Corporation shall make available for each of the fiscal 
years 1991 through 1995 not less than $500,000,000 in credit 
guarantees under section 202(b). 
"(c) MARKETING PROMOTION PROGRAMS.—The Commodity Credit 
Corporation or the Secretary shall make available for market pro-
motion activities authorized to be carried out by the Commodity 
Credit Corporation under section 203— 
"(1) in addition to any funds that may be specifically appro-
priated to implement a market development program, not less 
than $200,000,000 for each of the fiscal years 1991 through 1995 
of the funds of, or an equal value of commodities owned by, the 
Commodity Credit C!orporation; and 
"(2) any funds that may be specifically appropriated to carry 
out a marketing promotion program under section 203. 
"TITLE III—RESPONSE TO UNFAIR TRADE 
PRACTICES 
7 
use 
5
6
5
1
. 
"SEC. 
3
0
1
. 
EXPORT 
ENHANCEMENT 
PROGRAM. 
"(a) IN GENERAL.—The Commodity Credit Corporation shall carry 
out in accordance with this section a program to discourage unfair 
trade practices by making United States agricultural commodities 
competitive. 
"(b) EXPORT BONUS.— 
"(1) IN GENERAL.—In canying out the program established 
under this section, the Commodity Credit Corporation may— 
"(A) make agricultural commodities, acquired by the 
Commodity Credit Corporation, available to exporters, 
users, processors, or foreign purchasers at no cost either 
directly or through the issuance of commodity certificates; 
and 
"(B) make cash pajmients to exporters, users, and proc-
essors. 
"(2) CALCULATION OF BONUS LEVELS.—The Commodity Credit 
Corporation shall— 
- 
"(A) maintain an established procedure for evaluating 
program bonus requests, with guidelines for determining 
prevailing market prices for targeted commodities and des-
tinations to be used in the calculation of acceptable bonus 
levels; 
"(B) use a clear set of established procedures for measur-
ing transportation and incidental costs to be used in the 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3679 
calculation of acceptable bonus levels and for determining 
the amount of such costs actually incurred; and 
"(C) maintain consistent and effective controls and proce-
dures for auditing and reviewing pajrment of bonuses and 
for securing refunds where appropriate. 
"(3) DISCLOSURE OF INFORMATION.—The Secretary may, not-
withstanding the provisions of section 552 of title 5, United 
States Code, provide for withholding from the public the proce-
dures and guidelines established under paragraphs (2) (A) and 
(B) if the Secretary determines that release of such information 
would adversely ^fect the operation of the program. Nothing in 
this paragraph shall be construed to authorize the withholding 
of information, including such procedures and guidelines, from 
the Congress. 
"(4) COMPETITIVE DISADVANTAGE.—The Secretary shall take 
such action £is is necessary to ensure that equal treatment is 
provided to domestic and foreign purchasers £md users of agri-
cultural commodities in any case in which the importation of a 
manufactured product made, in whole or in part, from a 
commodity made available for export under this section would 
place domestic users of the commodity at a competitive dis-
advantage. 
"(5) DIFFERENT COMMODITIES.—The Commodity Credit Cor-
poration may provide to an exporter, user, or processor, or 
foreign purchaser, under the program established under this 
section, agricultural commodities of a kind different than the 
agricultural commodity involved in the transaction for which 
assistance under this section is being provided. 
"(6) OTHER EXPORT PROGRAMS.—The Commodity Credit Cor-
poration may provide bonuses under this section in conjunction 
with other export promotion programs conducted by the Sec-
retary or the Commodity Credit Corporation. 
"(7) AVOIDANCE OF PREFERENTIAL APPUCATION.—When using 
the authorities of this section to promote the exporting of 
wheat, the Secretary shall make reasonable efforts to avoid 
giving a preference to one class of wheat disproportionately 
more than another class. 
"(8) DISPLACEMENT.—The Secretary shall avoid the displace-
ment of usual marketings of United States agricultural 
commodities in carrjring out this section. 
"(c) PRIORITY IN THE CASE OF LIVESTOCK.—In the case of proposals 
for bonuses for dairy cattle or other appropriate livestock, the 
Commodity Credit Corporation shall give priority to proposals that 
include, in connection with the purchase of the livestock, appro-
priate herd management training, veterinary services, nutritiongd 
training, and other technical assistance necessary for the adaptation 
of the livestock to foreign environments. 
"(d) INAPPUCABILTTY OF PRICE RESTRICTIONS.—Any price restric-
tions that otherwise may be applicable to dispositions of agricultural 
commodities owned by the Commodity Credit Corporation sh£ill not 
apply to agricultural commodities provided under this section. 
"(e) FUNDING LEVELS.—The Commodity Credit (Dorporation shall 
make available for each of the fiscal years 1991 through 1995 not 
less than $500,000,000 of the funds or commodities of the Commodity 
Credit Corporation to carry out the prc^ram established under this 
section. 
104 STAT. 3680 
PUBLIC LAW 101-624—NOV. 28, 1990 
"(g) EFFECT ON THIRD COUNTRIES.—It is not the purpose of the 
program established under this section to affect adversely the ex-
ports of fairly traded agricultural commodities. 
7 use 5652. 
"SEC. 302. RELIEF FROM UNFAIR TRADE PRACTICES. 
"(a) USE OF PROGRAMS.— 
"(1) IN GENERAL.—The Secretary may, for each article de-
scribed in paragraph (2), make available some or all of the 
commercial export promotion programs of the Department of 
Agriculture and the Commodity Credit Corporation to help 
mitigate or offset the effects of the unfair trade practice serving 
as the basis for the proceeding described in paragraph (2). 
"(2) COMMODITIES SPECIFIED.—Paragraph (1) shall apply in the 
case of articles for which the United States has instituted, 
under any international trade agreement, any dispute settle-
ment proceeding based on an unfair trade practice if such 
proceeding has been prevented from progressing to a decision by 
the refusal of the party maintaining the unfair trade practice to 
permit the proceeding to progress. 
"(b) CONSULTATIONS REQUIRED.—For any article described in 
subsection (aX2), the Secretary shall— 
"(1) promptly consult with representatives of the industry 
producing such articles and other allied groups or individuals 
regarding specific actions or the development of an integrated 
marketing strategy utilizing some or all of the commercial 
export programs of the Department of Agriculture and the 
Commodity Credit Corporation to help mitigate or offset the 
effects of the unfair trade practice identified in subsection (aX2); 
and 
"(2) ascertain and take into account the industry preference 
for the practical use of available commercial export promotion 
programs in implementing subsection (aXD. 
7 use 5653. 
"SEC. 303. EQUITABLE TREATMENT OF HIGH-VALUE AND VALUE-ADDED 
UNITED STATES AGRICULTURAL COMMODITIES. 
"In the case of any program, such as that established under 
section 301, operated by the Secretary or the Commodity Credit 
Corporation during the fiscal years 1991 through 1995, for the 
purpose of discouraging unfair trade practices, the Secretary shall 
establish as an objective to expend annually at least 25 percent of 
the total funds available (or 25 percent of the value of any commod-
ities employed) for program activities involving the export sales of 
high-value agricultural commodities and value-added products of 
United States agricultural commodities. 
"TITLE IV—GENERAL PROVISIONS 
"Subtitle A—Program Controls 
7 use 5661. 
"SEC. 401. PROGRAM CONTROLS FOR EXPORT PROGRAMS. 
"(a) ARRIVAL CERTIFICATION.—With respect to commodities or 
other assistance provided, or for which financing or credit guaran-
tees are made available, under the programs authorized in sections 
201, 202, and 301, the Commodity Credit Corporation shall— 
Records. 
"(1) require the exporter to maintain records of an official or 
customary commercial nature or other documents as the Sec-
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3681 
retary may require, and have access to such documents or 
records as needed to verify the arrival of agricultural commod-
ities exported in connection with such programs in the coun-
tries that were the intended destination of such commodities; 
£ind 
"(2) obtain certification from the seller or exporter of record 
of such commodities, that there were no corrupt payments or 
extra sales services, or other items extraneous to the trans-
action provided, financed, or guaranteed in connection with the 
transaction, and that the transaction complied with applicable 
United States law. 
"(b) DIVERSION.—The unauthorized diversion of commodities 
under the programs authorized in sections 201, 202, and 301 is 
prohibited. The Commodity Credit Corporation shall establish proce-
dures providing for the annual audit of a sufficient number of export 
transactions under such programs to ensure that the Eigricultural 
commodities that were the subject of such transactions arrived in 
the country of destination as provided in the sales agreement. 
"(c) GOOD FAITH.—The failure of an exporter, seller or other 
person to comply with the provisions of this section shall not affect 
the validity of any credit guarantee or other obligation of the 
Commodity Credit (Dorporation under the programs under this Act 
with respect to any exporter, seller, or person who had no knowl-
edge of such failure to comply at the time such exporter, seller, or 
person was assigned the credit guarantee or at the time the Corpora-
tion entered into such obligation. 
"SEC. 402. COMPLIANCE PROVISIONS. 
7 USC 5662. 
"(a) RECORDS.— 
"(1) IN GENERAL.—In the administration of the programs Regulations. 
established under sections 201, 202, 203, and 301 the Secretary 
shall require by regulation each exporter or other participant 
under the program to maintain all records concerning a pro-
gram transaction for a period of not to exceed 5 years after 
completion of the program transaction, and to permit the Sec-
retary to have full and complete access, for such 5-year period, 
to such records. 
"(2) NoNPROGRAM TRANSACTIONS.—The Secretary may require 
by regulation an exporter or other participant in the programs 
to make records available to the Secretary with respect to non-
program transactions if such records would pertain directly to 
the review of program-related transactions undertaken by such 
exporter or participant, as determined by the Secretary. 
"(3) CONFIDENTIALITY.—The personally identifiable informa-
tion contained in reports under subsection (a) may be withheld 
in accordance with section 552(bX4) of title 5, United States 
Code. Any officer or employee of the Department of Agriculture 
who knowingly discloses confidential information as defined by 
section 1905 of title 18, United States (Dode, shall be subject to 
section 1905 of title 18, United States Code. Nothing in this 
subsection shall be construed to authorize the withholding of 
information from Congress. 
"(b) VIOLATION.—If any exporter, assignee, or other participant 
has engaged in fraud with respect to the programs authorized under 
this Act, or has otherwise violated program requirements under this 
Act, the Commodity Credit Corporation may— 
104 STAT. 3682 
PUBLIC LAW 101-624—NOV. 28, 1990 
"(1) hold such exporter, assignee, or participant liable for any 
and edl losses to the Corporation resulting from such fraud or 
violation; 
"(2) require a refund of any assistance provided to such 
exporter, assignee, or participant plus interest, as determined 
by the Secretary; and 
"(3) collect liquidated dsimages from such exporter, assignee, 
or participant in an amount determined appropriate by the 
Secretary. 
The provisions of this subsection shall be without prejudice to any 
other remedy that is available under any other provision of law. 
"(c) SUSPENSION AND DEBARMENT.—The Commodity Credit Cor-
poration may suspend or debar for 1 or more years any exporter, 
assignee, or other participant from participation in one or more of 
the programs authorized by this Act if the Corporation determines, 
after opportunity for a hearing, that such exporter, assignee, or 
other participant has violated the terms and conditions of the 
program or of this Act and that the violation is of such a nature as 
to warrant suspension or debarment. 
"(d) FALSE CERTIFICATIONS.—The provisions of section 1001 of title 
18, United States Code, shall apply to any false certifications issued 
under this Act. 
7 use 5663. 
"SEC. 403. DEPARTMENTAL ADMINISTRATION SYSTEM. 
"(a) IN GENERAL.—With respect to each commercial export pro-
motion program of the Department of Agriculture or the Commod-
ity Credit Corporation, the Secretary shall— 
Regulations. 
"(1) specify by regulation the criteria used to evaluate and 
approve proposals for that program; 
"(2) establish a centralized system to permit the Foreign 
Agricultural Service to provide the history and current status of 
any proposal; 
"(3) provide for regular audits of program transactions to 
determine compliance with program objectives and require-
ments; and 
"(4) establish criteria to evaluate loans eligible for guarantees 
by the Commodity Credit Corporation, so as to ensure that the 
Corporation does not assume undue risk in providing such 
guarantees. 
"(b) ACCESSIBIUTY OP INFORMATION.—Information pertaining to 
the status of a particular proposal shall be retrievable within the 
central system by appropriate categories, as determined appropriate 
by the Secretary. 
7 use 5664. 
"SEC. 404. REGULATIONS. 
"Not later than 180 days after the date of enactment of this Act, 
the Secretary shall issue regulations implementing the provisions of 
this Act, including specific regulations pertaining to program 
compliance requirements under sections 401 and 402. 
"Subtitle B—Miscellaneous Provisions 
7 use 5671. 
"SEC. 411. AGRICULTURAL EMBARGO PROTECTION. 
"(a) PREREQUISITES; SCOPE OF COMPENSATION.—Notwithstanding 
any other provision of law, if— 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3683 
"(1) the President or other member of the executive branch of 
the Federal Grovemment causes the export of any agricultural 
commodity to any country or area of the world to be suspended 
or restricted for reasons of national security or foreign policy 
under the Export Administration Act of 1979 (50 U.S.C. App. 
2401 et seq.) or under any other provision of law; 
"(2) such suspension or restriction of the export of such 
agricultural commodity is imposed other than in connection 
with a suspension or restriction of all exports from the United 
States to such country or area of the world; and 
"(3) sales of such agricultural commodity for export from the 
United States to such country or area of the world during the 
year preceding the year in which the suspension or restriction is 
imposed exceeds 3 percent of the total sales of such commodity 
for export from the United States to all foreign countries during 
the year preceding the year in which the suspension or restric-
tion is in effect; 
the Secretary shall compensate producers of the commodity in-
volved by maMng payments available to such producers, £is provided 
in subsection (b) of this section. 
"OJ) AMOUNT OF PAYMENTS.—If the Secretary makes payments 
available to producers under subsection (a), the amount of such 
^ 
pajmient shall be determined— 
"(1) in the case of an agricultural commodity for which 
pajmaents are authorized to be made to producers under Title I 
of the Agricultural Act of 1949 (7 U.S.C. 1441 et seq.), by 
multipljdng— 
"(A) the farm program pajrment jdeld for the producer or 
the jdeld established for the farm for the commodity in-
volved; by 
"(B) the crop acreage base established for the commodity; 
by 
"(C) the amount by which the average market price per 
unit of such commodity received by producers during the 
60-day period immediately following the date of the imposi-
tion of the suspension or restriction is less than 100 percent 
of the parity price for such commodity, as determined by 
the Secretary on the date of the imposition of the suspen-
sion or restriction; or 
"(2) in the case of other agricultural commodities for which 
price support is authorized for producers under the Agricultural 
Act of 1949 (7 U.S.C. 1421 et seq.), by multiplying the amount by 
which the average market price per unit of such commodity 
received by the producers during the 60-day period immediately 
following the date of the imposition of the suspension or restric-
tion is less than 100 percent of the parity price for such 
commodity, as determined by the Secretary on the date of the 
imposition of the suspension or restriction, by the qucmtity of 
such commodity sold by the producer during the period that the 
suspension or restriction is in effect. 
"(c) TIME FOR PAYMENTS.—Payments under paragraph (1) of 
subsection (b) shall be made for each marketing year or part thereof 
during which the suspension or restriction is in effect and shall be 
made in equal amounts at 90-day intervals, beginning 90 days after 
the date of the imposition of the suspension or restriction. 
104 STAT. 3684 
PUBLIC LAW 101-624—NOV. 28, 1990 
"(d) COMMODITY CREDIT CORPORATION.—The Secretary shall use 
the Commodity Credit Corporation in carrying out the provisions of 
this section. 
"(e) REGULATIONS.—The Secretary may issue such regulations as 
are determined necessary to carry out this section. 
7 use 5672. 
"SEC. 412. DEVELOPMENT OF PLANS TO ALLEVIATE ADVERSE IMPACT 
OF EMBARGOES. 
"To alleviate, to the maximum extent possible, the adverse impact 
on farmers, elevator operators, common carriers, and exporters of 
agricultural commodities of the President or other member of the 
executive branch of the Federal Government causing the export of 
any agricultural commodity to any country or area of the world to 
be suspended or restricted, the Secretary of Agriculture shall— 
"(1) develop a comprehensive contingency plan that shall 
include— 
"(A) an assessment of existing farm programs with a view 
to determining whether such programs are sufficiently 
flexible to enable the Secretary to efficiently and effectively 
offset the adverse impact of such a suspension or restriction 
on farmers, elevator operators, common carriers, and 
exporters of commodities provided for under such pro-
grams; 
^ 
"(B) an evaluation of the kinds and availability of 
information needed to determine, on an emergency basis, 
the extent and severity of the impact of such a suspension 
or restriction on producers, elevator operators, common 
carriers, and exporters; and 
"(C) the development of criteria for determining the 
extent, if any, to which the impact of such a suspension or 
restriction should be offset in the case of each of the sectors 
referred to in paragraph (IXB); 
"(2) for any suspension or restriction for which compensation 
is not provided under section 411, prepare and submit to the 
appropriate Committees of CJongress such recommendations for 
changes in existing agricultural programs, or for new programs, 
as the Secretary considers necessary to handle effectively, effi-
ciently, economically, and fairly the impact of any such suspen-
sion or restriction; 
"(3) for any suspension or restriction for which compensation 
is provided under section 411, prepare and submit to the appro-
priate (Dommittees of C!ongress a plan for implementing and 
administering section 411; and 
"(4) require the Commodity Credit Corporation, prior to such 
Corporation purchasing any contracts for the purpose of offset-
ting the impact of a commodity suspension or restriction, to— 
"(A) prepare an economic justification for each commod-
ity involved in the suspension or restriction to determine if 
such a purchase is necessary; 
"(B) estimate any suspension- or restriction-related bene-
fits and detrimental effects to the exporters, and use both 
estimates in determining the extent, if any. Federal assist-
ance is needed; and 
"(C) limit its purchases to only those types and grades of 
commodities suspended or restricted from shipment and 
make such purchases at prices at or near the current 
market prices. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3685 
"SEC. 413. CONTRACTING 
AUTHORITY 
TO 
EXPAND 
AGRICULTURAL 
V USC 5673. 
EXPORT MARKETS. 
"(a) IN GENERAL.—The Secretary may contract with individuals 
for services to be performed outside the United States as the Sec-
retary determines necessary or appropriate for carrying out pro-
grams and activities to maintain, develop, or enhance export mar-
kets for United States agricultural commodities and products. 
"(b) NOT EMPLOYEES OF THE UNITED STATES.—Individuals referred 
to in subsection (a) shall not be regarded as officers or employees of 
the United States. 
"SEC. 414. TRADE CONSULTATIONS CONCERNING IMPORTS. 
^ USC 5674. 
"(a) CONSULTATION BETWEEN AGENCIES.—The Secretary shall re-
quire consultation between the Administrator of the Service and the 
heads of other appropriate agencies and offices of the Department of 
Agriculture, including the Administrator of the Animal and Plant 
Health Inspection Service, prior to relaxing or removing any restric-
tion on the importation of any agricultural commodity into the 
United States. 
"(b) CONSULTATION WITH TRADE REPRESENTATIVE.—The Secretary 
shall consult with the United States Trade Representative prior to 
relaxing or removing any restriction on the importation of any 
agricultural commodity or a product thereof into the United States. 
"SEC. 415. TECHNICAL ASSISTANCE IN TRADE NEGOTIATIONS. 
7 USC 5675. 
"The Secretary shall provide technical services to the United 
States Trade Representative on matters pertaining to agricultural 
trade and with respect to international negotiations on issues re-
lated to agricultural trade. 
"SEC. 416. LIMITATION ON USE OF CERTAIN EXPORT PROMOTION PRO- 
7 USC 5676. 
GRAMS. 
"(a) IN GENERAL.—The Secretary may provide that a person shall 
be ineligible for participation in an export program established 
under title I of the Agricultural Trade Development and Assistance 
Act of 1954 (7 U.S.C. 1691 et seq.), or in any other export credit, 
credit guarantee, bonus, or other export program carried out 
through, or administered by, the Commodity Credit Corporation or 
carried out with funds made available pursuant to section 32 of the 
Act entitled 'An Act to amend the Agricultural Adjustment Act, and 
for other purposes', approved August 24, 1935 (7 U.S.C. 612c) with 
respect to the export of any agricultural commodity or product that 
has been or will be used as the basis for a claim of a refund, as 
drawback, pursuant to section 3130)(2) of the Tariff Act of 1930 (19 
U.S.C. 1313(j)(2)), of any duty, tax, or fee imposed under Federal law 
on an imported commodity or product. 
"(b) VEGETABLE OIL.—A person shall be ineligible for participation 
in any of the export programs referred to in subsection (a) with 
respect to the export of vegetable oil or a vegetable oil product that 
has been or will be used as the basis for a claim of a refund, as a 
drawback, pursuant to section 313 of the Tariff Act of 1930, of any 
duty, tax, or fee imposed under Federal law on an imported 
commodity or product. 
"(c) CERTIFICATION.—If the Secretary takes action under the 
authority granted under subsection (a), a person applying to export 
any agricultural commodity under the export programs referred to 
in subsection (a) shall certify that none of the commodity has been 
104 STAT. 3686 
PUBLIC LAW 101-624—NOV. 28, 1990 
or will be used as the basis of a claim for any refund specified in 
subsection (a), except that regardless of whether the Secretary takes 
action under the authority granted under subsection (a), a person 
applying to export any vegetable oil or vegetable oil product under 
such programs shall certify that none of the vegetable oil or vegeta-
ble oil product has been or will be used as the basis of a claim for 
any refund specified in subsection (b). 
"(d) REGULATIONS.—The Secretary shall promulgate regulations to 
carry out this section. 
"(e) APPUCABIUTY.—This section shall not apply to quantities of 
agricultural commodities and products with respect to which an 
exporter has entered into a contract, prior to the effective date of 
this section, for an export sale. 
"TITLE V—FOREIGN AGRICULTURAL 
SERVICE 
Establishment. 
"SEC. 501. UNDER SECRETARY FOR INTERNATIONAL AFFAIRS AND 
COMMODITY PROGRAMS. 
7 use 5691. 
"There is hereby established in the Department of Agriculture the 
position of Under Secretary of Agriculture for International Affairs 
and Commodity Programs to be appointed by the President, by and 
with the advice and consent of the Senate. The Under Secretary of 
Agriculture for International Affairs and Commodity Programs is 
authorized to exercise such functions and perform such duties re-
lated to foreign agriculture and agricultural stabilization and con-
servation, and shall perform such other duties, as may be required 
by law or prescribed by the Secretary of Agriculture. 
7 u s e 5692. 
"SEC. 502. ADMINISTRATOR OF THE FOREIGN AGRICULTURAL SERVICE. 
"(a) ESTABLISHMENT.—There is hereby established in the Depart-
ment of Agriculture the position of Administrator of the Foreign 
Agricultural Service. 
"(b) DUTIES.—The Administrator of the Foreign Agricultural Serv-
ice is authorized to exercise such functions and perform such duties 
related to foreign agriculture, and shall perform such other duties, 
as may be required by law or prescribed by the Secretary of Agri-
culture. 
"(c) USE OF SERVICE.—In carrying out the duties under this sec-
tion, the Administrator shall oversee the operations of the Foreign 
Agricultural Service, the General Sales Manager, and the Agricul-
tural Attache Service. 
7 u s e 5693. 
"SEC. 503. ESTABLISHMENT OF THE FOREIGN AGRICULTURAL SERVICE. 
"The Service shall assist the Secretary in carrying out the agricul-
tural trade policy of the United States by acquiring information 
pertaining to agricultural trade, carrjdng out market promotion and 
development activities, and implementing the programs authorized 
in this Act, the Agricultural Trade Development and Assistance Act 
of 1954, and other Acts. 
7 u s e 5694. 
"SEC. 504. STAFF OF THE FOREIGN AGRICULTURAL SERVICE. 
"(a) PERSONNEL OF THE SERVICE.—To ensure that the agriculturgil 
export progrguns of the United States are carried out in an effective 
mgmner, the authorized number of personnel for the Service shall 
not be less than 900 staff years each fiscal year. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3687 
"(b) RANK OF FOREIGN AGRICULTURAL SERVICE OFFICERS IN FOR-
EIGN MISSIONS.—Notwithstanding any other provision of law, the 
Secretary of State shall, on the request of the Secretary of Agri-
culture, accord the diplomatic title of Minister-Counselor to the 
senior Service officer assigned to any United States mission abroad. 
The number of Service officers holding such diplomatic title at any 
time may not exceed twelve. 
"SEC. 506. AUTHORIZATION OF APPROPRIATIONS. 
7 USC 5695. 
"There are hereby authorized to be appropriated for the Service 
such sums as may be necessary to carry out the provisions of this 
title. 
"TITLE VI—REPORTS 
"SEC. 601. LONG-TERM AGRICULTURAL TRADE STRATEGY REPORT. 
7 USC 5711. 
"(a) IN GENERAL.—The Secretary shall periodically prepare a 
long-term agricultural trade strategy report on the long-term agri-
cultural trade strategy developed by the Secretary under section 
104. 
"(b) FREQUENCY.—The initial report prepared under subsection (a) 
shall be submitted under subsection (f) prior to October 1, 1991. 
Subsequent reports shall be submitted under subsection (f) prior to 
October 1 of each third fiscal year occurring after fiscal year 1992. 
"(c) CONTENTS.—Each report prepared under subsection (a) shall 
describe in detail each aspect of the long-term agricultural trade 
strategy prepared under section 104. 
"(d) CONSULTATION.—In preparing each report under subsection 
(a), the Secretary shall consult with the United States Trade Rep-
resentative to ensure that the report is coordinated with the annual 
national trade policy agenda that is included in the annual report 
prepared under section 163 of the Trade Act of 1974 for the relevant 
fiscal year. 
"(e) UPDATE.—The Secretary shall prepare an annual update to 
the report required under subsection (a) in each of the 2 fiscal years 
following the year for which a report is prepared under subsection 
(a). Such updates shall contain a description of any revisions to the 
long-term agricultural trade strategy under section 104, any 
changes in law that are necessary to meet the goals of the long-term 
agricultural trade strategy, and such other information as the Sec-
retary considers appropriate. 
"(f) TREATMENT AS ANNUAL BUDGET SUBMISSION.— 
"(1) REPORT.—The report required under subsection (a), or the 
updates required under subsection (e), shall be submitted to 
Congress annually with the Budget of the United States 
Government for the appropriate fiscal year. 
"(2) RECOMMENDED LEVELS OF SPENDING.—Any provision of a 
report under subsection (a) or the annual updates under subsec-
tion (e) that relates to recommended levels of spending on 
international activities of the Department of Agriculture shall 
be included in the Budget of the United States Government 
submitted by the President for the fiscal year beginning in the 
year in which such report or update is submitted. Such reports 
and updates shall be submitted to Congress together with the 
budget request for other programs of the Department of Agri-
culture for such fiscal year. 
104 STAT. 3688 
PUBLIC LAW 101-624—NOV. 28, 1990 
"(g) AVAILABILITY OF REPORT.— 
"(1) SUBMISSION TO CONGRESS.—The Secretary shall submit 
each report required under subsection (a) and the updates to 
such report under subsection (e) to the Committee on Agri-
culture, the Committee on Foreign Affairs, and the Committee 
on Ways and Means of the House of Representatives and to the 
Committee on Agriculture, Nutrition, and Forestry and the 
Committee on Finance of the Senate. 
"(2) AVAILABILITY TO PUBUC.—Except as provided in para-
graph (3), the Secretary may make the report required under 
subsection (a) and the updates under subsection (e) available to 
the general public, including the department of agriculture of 
any State. 
"(3) CONFIDENTIALITY.—The Secretary may designate parts of 
the report required under subsection (a) or any update prepared 
under subsection (e) as confidential and such parts shall not be 
released to the general public, if^ 
"(A) the Secretary determines that the release of such 
information would disadvantage the United States with 
respect to its competitors in specific foreign markets; or 
"(B) the Secretary determines that any of such informa-
tion is confidential business information. 
"(4) EXCEPTION OF PERFORMANCE,—The provisions of para-
graph (3)(A) shall not be applicable with respect to that part of 
the agricultural trade strategy under section 104 that reviews 
the agricultural trade performance of the United States over 
the previous 3-year period. 
7 u s e 5712. 
"SEC. 602. EXPORT REPORTING AND CONTRACT SANCTITY. 
"(a) EXPORT SALES REPORTS.— 
"(1) IN GENERAL.—All exporters of wheat and wheat flour, 
feed grains, oil seeds, cotton and products thereof, and other 
commodities that the Secretary may designate as produced in 
the United States shall report to the Secretary of Agriculture, 
on a weekly basis, the following information regarding any 
contract for export sales entered into or subsequently modified 
in any manner during the reporting period: 
"(A) type, class, and quantity of the commodity sought to 
be exported; 
"(B) the marketing year of shipment; and 
"(C) destination, if known. 
"(2) CONFIDENTIALITY AND COMPILATION OF REPORTS.—Individ-
ual reports shall remain confidential in accordance with subsec-
tion (c) but shall be compiled by the Secretary and published in 
compilation form each week following the week of reporting. 
"(3) IMMEDIATE REPORTING.—All exporters of agricultural 
commodities produced in the United States shall, upon request 
of the Secretary, immediately report to the Secretary any 
information with respect to export sales of agricultural 
commodities and at such times as the Secretary may request. 
Public 
When the Secretary requires that such information be reported 
information. 
^jy exporters on a daily basis, the information compiled from 
individual reports shall be made available to the public daily. 
"(4) 
MONTHLY REPORTING PERMITTED.—The Secretary 
may, 
with respect to any commodity or type or class thereof during 
any period in which the Secretary determines that— 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3689 
"(A) there is a domestic supply of such commodity 
substantially in excess of the quantity needed to meet 
domestic requirements, 
"(B) total supplies of such commodity in the exporting 
countries are estimated to be in surplus, 
"(C) anticipated exports will not result in excessive drain 
on domestic supplies, and 
"(D) to require the reports to be made will unduly 
hamper export sales, 
provide for such reports by exporters and publishing of such 
data to be on a monthly basis rather than on a weekly basis. 
"(b) FAILURE TO REPORT.—Any person who knowingly fails to Penalties. 
make any report required under this section shall be fined not more 
than $25,000 or imprisoned for not more than 1 year, or both. 
"(c) CONTRACT SANCTITY.—Notwithstanding any other provision of 
law, the President shall not prohibit or curtail the export of any 
gigricultural commodity under an export sales contract— 
"(1) that is entered into before the President announces an 
action that would otherwise prohibit or curtail the export of the 
commodity, and 
"(2) the terms of which require delivery of the commodity 
within 270 days after the date of the suspension of trade is 
imposed, 
except that the President may prohibit or curtail the export of any 
agricultural commodity during a period for which the President has 
declared a national emergency or for which the Congress has de-
clared war. 
"SEC. 603. OTHER REPORTS TO CONGRESS. 
7 USC 5713. 
The Secretary shall, on a quarterly basis, prepare and submit to 
the Committee on Agriculture and the Committee on Foreign Af-
fairs of the House of Representatives and the Committee on Agri-
culture, Nutrition, and Forestry of the Senate a report specifying 
the cumulative amount of export assistance provided by the 
Commodity Credit Corporation and the Secretary under the pro-
grams provided under this Act, the Commodity Credit Corporation 
Charter Act, and under the Agricultural Trade Development and 
Assistance Act of 1954 during the current fiscal year. Such informa-
tion may be provided in individual reports, in a consolidated report, 
or in the Long-Term Agricultural Trade Strategy Report (and 
annual updates to such report) prepared under section 601.". 
SEC. 1532. AMENDMENT TO THE AGRICULTURAL ACT OF 1954. 
The Agricultural Act of 1954 (7 U.S.C. 1741 et seq.) is amended by 
adding at the end thereof the following new sections: 
"SEC. 
1
0
8
. 
ANNUAL 
REPORTS 
BY 
AGRICULTURAL 
ATTACHES. 
7 
USC 
1
7
4
8
. 
"(a) IN GENERAL.—The Secretary shall require appropriate offi-
cers and employees of the Department of Agriculture, including 
those stationed in foreign countries, to prepare and submit annually 
to the Secretary detailed reports that— 
"(1) document the nature and extent o
f
— 
"(A) programs in such countries that provide direct or 
indirect government support for the export of agricultural 
commodities and the products thereof; 
104 STAT. 3690 
PUBLIC LAW 101-624—NOV. 28, 1990 
"(B) other trade practices that may impede the entry of 
United States agricultural commodities and the products 
thereof into such countries; and 
"(C) where practicable, the average prices and costs of 
production in such countries for like commodities exported 
from the United States to such countries; and 
"(2) identify opportunities for the export of United States 
agricultural commodities and the products thereof to such coun-
tries. 
"(b) DUTIES.—The Secretary shall— 
"(1) annually compile the information contained in reports 
prepared under subsection (a)— 
"(A) on a country by country basis; and 
"(B) on a commodity by commodity basis for exports of 
United States agricultural commodities including fruits, 
vegetables, legumes, popcorn and ducks, as determined 
appropriate by the Secretary, the export of which is ham-
pered by an unfair trade practice. Where practicable, the 
report shall include a comparison of the aversige prices and 
costs of production for such commodities in the United 
States and in the importing countries for the previous crop 
year. 
"(2) in consultation with the agricultural technical advisory 
committees established under section 135(c) of the Trade Act of 
1974 (19 U.S.C. 2155(c)), include in the compilation a priority 
ranking of those trade barriers identified in subsection (a) by 
commodity group; 
"(3) include in the compilation a list of actions undertaken to 
reduce or eliminate such trade barriers; and 
"(4) not later than January 15 of each year, make the com-
pilation available to Congress, the trade assistance office au-
thorized under section 504 of the Agricultural Trade Act of 1978 
(as amended by section 201), the agricultural policy advisory 
committee, and other interested parties. 
"(c) MEETING.—The Secretary and the United States Trade Rep-
resentative shall convene a meeting, at least once each year, of the 
Agricultural Policy Advisory Committee and the Eigricultural tech-
nical advisory committees to develop specific recommendations for 
actions to be taken by the Federal Government and private industry 
to— 
"(1) reduce or eliminate trade barriers or distortions identi-
fied in the annual reports required to be submitted under 
subsections (a) and (b); and 
"(2) expand United States agricultural export opportunities 
identified in such annual reports. 
7 use 1749. 
"SEC. 109. ATTACHE EDUCATIONAL PROGRAM. 
"The Administrator of the Foreign Agricultural Service shall 
establish a program within the Service that directs attaches of the 
Service who are reassigned from abroad to the United States, and 
other personnel of the Service, to visit and consult with producers 
and exporters of agricultural commodities and products and State 
officials throughout the United States concerning various methods 
to increase exports of United States agricultural commodities and 
products.". 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3691 
Subtitle D—General Provisions 
SEC. 1541. COTTONSEED OIL AND SUNFLOWER OIL EXPORTS. 
Subparagraph (A) of section 301(bX2) of the Disaster Assistance 
Act of 1988 (7 U.S.C. 1464 note) is amended to read as follows: 
"(AXi) Effective for each of the fiscal years 1991 through 1995, 
$50,000,000 of the funds made available under section 32 of the Act 
entitled 'An Act to amend the Agricultural Adjustment Act, and for 
other purposes', approved August 24, 1935 (7 U.S.C. 612c) shall, to 
the extent provided in appropriations Acts, be utilized during each 
such fiscal year as provided for in clause (1) of the second sentence of 
such Act to encourage the sale of additional quantities of 
sunflowerseed oil and cottonseed oil in world markets at competitive 
world prices through the payment of benefits in connection with the 
exportation of such commodities. 
'(ii) Clause (i) shall be implemented in such a manner as to 
maximize the export of such oils by assuring that the sums made 
available under such clause are fully obligated in the year or years 
in which— 
"(I) such sums are made available; and 
"(11) the domestic prices of such oils exceed competitive world 
prices. 
"(iii) In determining sales on which benefits are to be provided 
under this subparagraph, the Secretary shall take into consideration 
solely the amount of benefits needed to encourage the sale. 
"(iv) In carrying out this subparagraph, the Secretary shall ensure 
that, to the maximum extent practicable, equivalent amounts of 
funds are used during each fiscal year to encourage the sale of 
sunflower seed oil and cottonseed oil in world markets.". 
SEC. 1542. PROMOTION OF AGRICULTURAL EXPORTS TO EMERGING 
7 USC 5622 note. 
DEMOCRACIES. 
(a) GUARANTEES TO BE MADE AVAILABLE.—The Commodity Credit 
Corporation, for the fiscal years 1991 through 1995 shall make 
available not less than $1,000,000,000 of export credit guarantees for 
exports to emerging democracies under section 202 of the Agricul-
tural Trade Act of 1978, in addition to the amounts required under 
section 211 of that Act for such program. 
(b) IMPROVEMENT OF FACIUTIES.—A portion of such export credit 
guarantees shall be made available for the establishment or 
improvement by United States persons of facilities in emerging 
democracies to improve handling, marketing, processing, storage, or 
distribution of imported agricultural commodities and products 
thereof if the Secretary of Agriculture determines that such guaran-
tees will primarily promote the export of United States agricultural 
commodities (as defined in section 101(6) of the Agricultural Trade 
Act of 1978). The Commodity Credit Corporation shall give priority 
under this subsection to opportunities or projects identified under 
subsection (d). 
(c) CONSULTATIONS.—Before the authority under this section is 
exercised, the Secretary of Agriculture shall consult with exporters 
of United States agricultural commodities (as defined in section 
101(6) of the Agricultural Trade Act of 1978), nongovernmental 
experts, and other Federal Government agencies in order to ensure 
that facilities in an emerging democracy for which financing is 
guaranteed under paragraph (IXB) do not primarily benefit coun-
104 STAT. 3692 
PUBLIC LAW 101-624—NOV. 28, 1990 
tries which are in close geographic proximity to that emerging 
democracy. 
(d) SHARING UNITED STATES AGRICULTURAL EXPERTISE.— 
(1) IN GENERAL.— 
(A) ESTABLISHMENT OF PROGRAM.—For each of the fiscal 
years 1991 through 1995, the Secretary of Agriculture (here-
after in this section referred to as the "Secretary"), in order 
to develop, maintain, or expand markets for United States 
agricultural exports, is directed to meike available to emerg-
ing democracies the expertise of the United States to make 
assessments of the food and rural business systems needs of 
such democracies, make recommendations on measures 
necessary to enhance the effectiveness of those systems, and 
identify specific opportunities and projects to enhance the 
effectiveness of those systems. 
(B) EXTENT OF PROGRAM.—The Secretary shall implement 
this subsection with respect to at least 3 emerging democ-
racies in each fiscal year. 
(2) EXPERTS FROM THE UNITED STATES.—The Secretary shall 
implement the requirements of paragraph (1)— 
(A) by providing assistance to teams consisting primarily 
of agricultural consultants and government officials expert 
in assessing the food and rural business systems of other 
countries to enable such teams to conduct the assessments, 
make the recommendations, and identify the opportunities 
and projects specified in paragraph (1) in emerging democ-
racies; and 
(B) by providing necessary subsistence expenses in the 
United States and necessary transportation expenses by 
individuals designated by emerging democracies to enable 
such individuals to consult with food and rural business 
system experts in the United States to enhance such sys-
tems of such emerging democracies. 
(3) CJosT-SHARiNG.—The Secretary shall encourage the non-
governmental experts described in paragraph (2XB) to share the 
costs of, and otherwise assist in, the participation of such ex-
perts in the program under this subsection. 
(4) TECHNICAL ASSISTANCE.—The Secretary is authorized to 
provide technical assistance to implement the recommenda-
tions, or in connection with the opportunities or projects identi-
fied, under paragraph (1). 
(5) REPORTS TO SECRETARY.—A team that receives assistance 
under paragraph (2XA) shall prepare such reports as the Sec-
retary may designate. 
Public 
(6) REPORT TO CONGRESS.—The Secretary shall annually 
information. 
submit to the Committee on Agriculture, Nutrition, £ind For-
estry of the Senate and the Committee on Agriculture and the 
Committee on Foreign Affairs of the House of Representatives, 
a report summarizing the activities carried out under this 
subsection, including a summary of the assessments and rec-
ommendations prepared under this subsection, and the Sec-
retary shall £dso make the assessments and recommendations 
available to the public. 
(7) ADVISORY COMMITTEE.—To provide the Secretary with 
information that may be useful to the Secretary in carrying out 
the provisions of this subsection, the Secretary shall establish 
an advisory committee composed of representatives of the var-
wprntrnf' 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3693 
ious sectors of the food and rural business systems of the United 
States. 
(8) USE OF CCC.—The Secretary shall implement this subsec-
tion through the funds and facilities of the Commodity Credit 
Corporation. The authority provided under this subsection shall 
be in addition to and not in place of any other authority of the 
Secretary or the Commodity Credit Corporation. 
(9) LEVEL OF ASSISTANCE.—The Secretary shall provide assist-
ance under this subsection of not more than $5,000,000 in any 
fiscal year. 
(e) FOREIGN DEBT BURDENS.— 
(1) EFFECT OF CREDITS.—In carrying out the program described 
in subsection (a), the Secretary of Agriculture shall ensure that 
the credits for which repa3nnent is guaranteed under subsection 
(a) do not negatively affect the political and economic situation 
in emerging democracies by excessively adding to the foreign 
debt burdens of such countries. 
(2) CONSULTATION AND REPORT.—Not later than 6 months after 
the effective date of this title, and not later than the end of each 
6-month period occurring thereafter, the Secretary of Agri-
culture, in consultation with other appropriate Federsd depart-
ments, shall prepare and transmit to the Committee on Foreign 
Affairs and the Committee on Agriculture of the House of 
Representatives, and the Committee on Agriculture, Nutrition, 
and Forestry of the Senate a report to Eissist the Congress in 
assessing the extent to which credits for which repajonent is 
guaranteed under subsection (a) meet the requirements of para-
graph (1). The report shall include— 
(A) the amount and allocation, by country, of credit 
guarantees issued under subsection (a); . 
(B) the aggregate foreign debt burdens of countries receiv-
ing commodities or facilities under such credit guarantees, 
expressed in terms of debt on account of agricultural 
commodities or products thereof, or facilities for which 
guarantees may be made under subsection (aXl)(B), and all 
other debt; 
(C) the activities of creditor governments and private 
creditors to reschedule or reduce payments due on existing 
debt owed to such creditors by a country in cases where 
such country has been unable to fully meet its debt obliga-
tions; and 
(D) an analysis of— 
(i) the economic effects of the foreign debt burden of 
each recipient country, and in particular the economic 
effects on each recipient country of the credits for 
which repayment is guaranteed under subsection (a); 
and 
(ii) the relationship between any negative economic 
effects on any recipient country caused by its overall 
foreign debt burden and debt incurred under subsection 
(a) and such country's political stability. 
(f) EMERGING DEMOCRACY.—As used in this section, the term 
"emerging democracy" means any country that, as determined by 
the President, is taking steps toward— 
(1) political pluralism, based on progress toward free and feiir 
elections and a multiparty political system; 
104 STAT. 3694 
PUBLIC LAW 101-624—NOV. 28, 1990 
(2) economic reform, based on progress toward a market-
oriented economy; 
(3) respect for internationally recognized human rights; and 
(4) a willingness to build a friendly relationship with the 
United States. 
7 use 3293. 
SEC. 1543. AGRICULTURAL FELLOWSHIP PROGRAM FOR MIDDLE INCOME 
COUNTRIES AND EMERGING DEMOCRACIES. 
(a) EsTABusHMENT.—The Secretary of Agriculture shall establish 
a fellowship program for middle income countries and emerging 
democracies, to be known as the "Cochran Fellowship Program", to 
provide fellowships to individuals from eligible countries who 
specialize in agriculture for study in the United States. 
(b) EuGiBLE COUNTRIES.—Countries that meet the following 
requirements shall be eligible to participate in the program estab-
lished under this section: 
(1) MIDDLE-INCOME COUNTRY.—A country that has developed 
economically to the point where it no longer qualifies for bi-
lateral foreign aid assistance from the United States because its 
per capita income level exceeds the eligibility requirements of 
such assistance programs (hereafter referred to in this section 
as a "middle-income" country). 
(2) ONGOING RELATIONSHIP.—A middle-income country that 
has never qualified for bilateral foreign aid assistance from the 
United States, but with respect to which an ongoing relation-
ship with the United States, including technical assistance and 
training, would provide mutual benefits to such country and the 
United States. 
(3) TYPE OF GOVERNMENT.—A country that has recently begun 
the transformation of its system of government from a non-
representative type of government to a representative democ-
racy and that is encouraging democratic institution building, 
and the cultural values, institutions, and organizations of demo-
cratic pluralism. 
(c) PURPOSE OF THE FELLOWSHIPS.—Fellowships under this section 
shall be provided to permit the recipients to gain knowledge and 
skills that will— 
(1) assist eligible countries to develop agricultural systems 
necessary to meet the food needs of their domestic populations; 
and 
(2) strengthen and enhance trade linkages between eligible 
countries and agricultural interests in the United States. 
(d) INDIVIDUALS WHO MAY RECEIVE FELLOWSHIPS.—The Secretary 
shall utilize the expertise of United States agricultural counselors, 
trade officers, and commodity trade promotion groups working in 
participating countries to help identify program candidates for 
fellowships under this section from both the public and private 
sectors of those countries. 
(e) PROGRAM IMPLEMENTATION.—The Secretary shall consult with 
other United States Government agencies. United States univer-
sities, and the private agribusiness sector, as appropriate, to design 
and administer training programs to accomplish the objectives of 
the Program established under this section. 
(f) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 
be appropriated without fiscal year limitation such sums £is may be 
necessary to carry out the program established under this section, 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3695 
except that the amount of such funds in any fiscal year shall not 
exceed— 
(1) for eligible countries that meet the requirements of subsec-
tion (b)(1), $3,000,000; 
(2) for eligible countries that meet the requirements of 
subsection (b)(2), $2,000,000; and 
(3) for eligible countries that meet the requirements of subsec-
tion 03)(3), $5,000,000. 
(g) COMPLEMENTARY FUNDS.—If the Secretary of Agriculture 
determines that it is advisable in furtherance of the purposes of the 
program established under this section, the Secretary may accept 
money, funds, property, and services of every kind by gift, devise, 
bequest, grant, or otherwise, and may, in any manner, dispose of all 
such holdings and use the receipts generated from such disposition 
as general program funds under this section. All funds so designated 
for the program established under this section shall remain avail-
able until expended. 
SEC. 1544. ASSISTANCE IN FURTHERANCE OF NARCOTICS CONTROL 
22 USC 2151x-2. 
OBJECTIVES OF THE UNITED STATES. 
(a) WAIVER OF CERTAIN RESTRICTIONS.—For the purpose of reduc-
ing dependence upon the production of crops from which narcotic 
and psychotropic drugs are derived, the President may provide 
economic assistance for a country which, because of its coca produc-
tion, is a major illicit drug producing country (as defined in section 
481(iX2) of the Foreign Assistance Act of 1961 (22 U.S.C. 2291(iX2))) 
to promote the production, processing, or the marketing of products 
which can be economically produced in such country, notwithstand-
ing the provisions of law described in subsection (b) of this section. 
(b) DESCRIPTION OF RESTRICTIONS WAIVED.—The provisions of law 
made inapplicable by subsection (a) are any other provisions of law 
that would otherwise restrict the use of economic assistance funds 
with respect to the production, processing, or marketing of agricul-
tural commodities (or the products thereof) or other products, 
including sections 521, 546, and 547 (but excluding section 510) of the 
Foreign Operations, Export Financing, and Related Programs 
Appropriations Act, 1990, and comparable provisions of subsequent 
Acts appropriating funds for foreign operations, export financing, 
and related programs. 
(c) DEFINITION OF ECONOMIC ASSISTANCE.—As used in this section, 
the term "economic assistance" means assistance under chapter 1 of 
part I of the Foreign Assistance Act of 1961 (22 U.S.C. 2151 and 
following; relating to development assistance) and assistance under 
chapter 4 of part II of that Act (22 U.S.C. 2346 and following; 
relating to the economic support fund). 
SEC. 1545. WORLD LIVESTOCK MARKET PRICE INFORMATION. 
7 USC 1761 note. 
(a) DEVELOPMENT OF METHODOLOGY.—The Secretary of Agri-
culture shall develop appropriate methodology for determining the 
world price of livestock and livestock products and shall gather and 
analyze appropriate price and cost of production information 
concerning such products in foreign countries for the purpose of 
price discovery and to aid in the sale of livestock and livestock 
products in foreign export markets. 
(b) PUBLICATION OF INFORMATION.—Not later than 240 days after 
the date of enactment of this Act, eind periodically thereafter, the 
104 STAT. 3696 
PUBLIC LAW 101-624—NOV. 28, 1990 
Secretary of Agriculture shall publish the information gathered 
under subsection (a). 
Subtitle E—Studies, Reports, and Other 
Provisions 
SEC. 1551. STUDY OF NORTH AMERICAN FREE TRADE AREA. 
The Secretary of Agriculture shall study the effects on the United 
States agricultural economy of the creation of a North American 
free trade area, including the creation of a United States-Mexico 
free trade area. The Secretary shall submit a report on the results of 
such study to the Congress not later than March 31,1991. 
SEC. 1552. ROSE AND FLOWER STUDY. 
(a) IN GENERAL.—The Secretary of Agriculture shall conduct a 
study of the impact of consignment sales of foreign roses and fresh 
cut flowers on the domestic rose and fresh cut flower industry, 
taking into account the findings in the report issued in April 1989 
entitled "Competitive Conditions in the U.S. and World Markets for 
Fresh Cut Roses" by the United States International Trade Commis-
sion. 
(b) REPORT TO CONGRESS.—Not later than 6 months after the date 
of enactment of this Act, the Secretary shall report the results of the 
study conducted under subsection (a) to the Congress, together with 
any recommendation of the Secretary on how the domestic rose and 
fresh cut flower industry can compete fairly with the practice of 
consignment sales. 
SEC. 1553. COMMODITY TRANSPORTATION AND TECHNOLOGY ASSESS-
MENT AND REPORT. 
(a) ASSESSMENT.—The Secretary of Agriculture shall conduct an 
assessment of the impact upon prices received by producers, costs to 
consumers, and the overall effect upon the ability of the United 
States to fulfill export goals and expand foreign markets for domes-
tic commodities, of the current sigricultural transportation situation, 
focusing especially on rail transportation capabilities including rail 
abandonments, periodic shortages of adequate rail car equipment 
suitable for transporting agricultural commodities, and the practice 
of rail carriers selling in advance certificates of transportation. 
(b) ADDITIONAL REQUIREMENTS.—In preparing the assessment re-
quired by this section, the Secretary shall consult with rail, truck, 
and waterborne carriers who have experience in the transportation 
of agricultural commodities, and shall also examine the feasibility 
of— 
(1) providing technical and financial assistance to producers, 
marketers, and exporters in the design and construction of 
alternatives to covered rail hopper cars (such as freight contain-
ers which could be carried aboard flatbed trucks, flatbed rail 
cars, river barges, and oceangoing container vessels) for the 
purpose of transporting bulk commodities to appropriate termi-
nal market facilities; and 
(2) encourgiging the establishment of a computerized network 
which would assist producers, marketers, exporters, and car-
riers in identifying, matching, and coordinating potential car-
goes of agricultural commodities with carriers having proper 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3697 
capabilities and equipment in an effort to expedite transpor-
tation needs. 
(c) REPORT.—Within 240 days after the date of enactment of this 
Act, the Secretary of Agriculture shall report to the Committee on 
Agriculture, Nutrition, and Forestry of the Senate and to the 
Committee on Agriculture of the House of Representatives the 
results of the assessment conducted under this section, and any 
recommendations the Secretary may have as a result of such Eissess-
ment. 
SEC. 1554. REPORT ON SECTION 22 SUSPENSION OR TERMINATION. 
7 USC 624 note. 
(a) REQUIREMENT OF REPORT.—If section 22 of the Agricultural 
Adjustment Act (7 U.S.C. 624) is repealed or all measures pro-
claimed under such section are suspended, the Secretary of Agri-
culture shall, prior to the effective date of the suspension or termi-
nation of any quantitative limitation or fee in effect under that 
section, report to the Congress. 
(b) CONTENTS OF REPORT.—The report under subsection (a) shall 
assess each material consequence of the lifting of such limitation or 
fee, including the impact on— 
(1) the Farmers Home Administration and agricultural credit 
in general; 
(2) the prices paid to farmers generally for the affected com-
modity; and 
(3) United States food security needs. 
SEC. 1555. AGRICULTURAL EXPORTS TO THE EUROPEAN COMMUNITY. 
(a) FINDINGS.—The Congress finds that— 
(1) the European Community has established a system, as 
part of its Europe 1992 economic integration plan, to set product 
standards and requirements, including those related to agricul-
tural commodities and products thereof, and that system has 
not been transparent insofar as the European Community has 
refused reasonable requests to allow United States Government 
or industry experts to observe meetings of European standards-
setting institutions; 
(2) the European Community is gdso currently writing the 
rules by which United States exporters of agricultural commod-
ities and products thereof will be able to show compliance with 
European Community product standards and requirements, and 
has refused to guarantee that such United States exporters will 
be able to show compliance with European Community product 
standards and requirements by using United States laboratories 
or through self-certification; 
(3) the United States maintains an open, transparent system 
to set standards and requirements for agricultural commodities 
and products thereof, and many reciprocal arrangements cur-
rently in place allow European Community exporters of agricul-
tural commodities and products thereof to show compliance 
with United States product standards and requirements by 
using European Community laboratories or through self-certifi-
cation; 
(4) the value of United States exports of agricultural commod-
ities and products thereof to the European Community in 1989 
was $6,600,000,000, constituting 17 percent of all United States 
exports of agricultural commodities and products thereof; and 
104 STAT. 3698 
PUBLIC LAW 101-624—NOV. 28, 1990 
(5) the product standards and testing policies of the European 
Community are consequently unfair and discriminatory, and 
have great potential to reduce significantly exports from the 
United States of agricultural commodities and products thereof. 
(b) STATEMENTS OF POLICY.— 
(1) The Congress denounces the European Community's 
nontransparent process of setting standards and requirements 
for agricultural commodities and products thereof, and the 
Congress further denounces the refusal by the European 
Community to guarantee that United States exporters of such 
commodities and products will be able to show compliance with 
European Community standards sind requirements by using 
United States laboratories or through self-certification. 
(2) The Congress deplores the adverse consequences of the 
standards and testing policies of the European Community on 
the bilateral agricultural trade relationship between the United 
States and the European Community. 
(3) The Congress urges the President to use all available 
means to bring about significant and far-reaching changes in 
the standards and testing policies of the European Community 
in order to protect and maintain United States access to the 
European Community market for agricultural commodities and 
products thereof. 
7 u s e 5694 note. 
gEC. 1556. LANGUAGE PROFICIENCY AND EVALUATION OF FOREIGN 
AGRICULTURAL SERVICE OFFICERS. 
(a) ASSESSMENT OF FOREIGN LANGUAGE COMPETENCE.—The For-
eign Agricultural Service shall revise its evaluation reports for its 
Foreign Service officers so as to require in a separate entry an 
assessment of the officer's effectiveness in using, in his or her work, 
a foreign Isinguage or foreign languages tested at the Greneral 
Professional Speaking Proficiency level or above, in CEises where the 
supervisor is capable of making such an assessment. 
0)) PRECEDENCE IN PROMOTION.—The Director of Personnel of the 
Foreign Agricultural Service shall instruct promotion panels to take 
account of language ability and, all criteria for promotion otherwise 
being equal, to give precedence in promotions to officers who have 
achieved at legist the General Professional Speaking Proficiency 
level in 1 or more foreign languages over officers who lack that level 
of proficiency. 
(c) REPORT TO CONGRESS.—Within 6 months after the effective date 
of this title, the Administrator of the Foreign Agricultural Service 
shall submit a report to the Committee on Foreign Affsdrs, the 
Committee on Agriculture, and the Committee on Post Office and 
Civil Service of the House of Representatives, and the Committee on 
Agriculture, Nutrition, and Forestry of the Senate, which— 
(1) details the extent to which, in the 3 years before the 
effective date of this title. Foreign Service officers of the Foreign 
Agricultural Service achieved General Professional Speaking 
Proficiency level in a primary foreign language of the host 
countries in which they served before arriving in such countries 
or within 1 year after such arrival; and 
(2) makes specific, new proposals to the Congress on how to 
ensure that at least 75 percent of Foreign Service officers of the 
Foreign Agricultural Service have achieved General Profes-
sional S p e ^ n g Proficiency level in a primary foreign language 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3699 
of the host countries in which they serve before arriving in such 
countries or within 1 year after such arrival. 
SEC. 1557. REPORTING REQUIREMENTS RELATING TO TOBACCO. 
The Tobacco Adjustment Act of 1983 is amended by inserting after 
section 213 (7 U.S.C. 51 Ir) the following new section: 
"SEC. 214. REPORTING REQUIREMENTS RELATING TO TOBACCO. 
Records. 
"(a) IN GENERAL.—Not later than 60 days after the export of m'dustiy. 
tobacco or a tobacco product not described in subsection (b), the 7 USC 509. 
exporter of such tobacco or tobacco product shall prepare a report 
containing the records relating to such export and submit such 
report to the Secretary of Agriculture. 
"(b) SPECIAL RULE.—Manufacturers of tobacco products shall pre-
pare and maintain records on all finished cigarettes and cigarette 
ready tobacco. Information contained in such records shall be aggre-
gated on a quarterly basis, certified as accurate by the entity 
preparing such aggregation, and submitted to the Secretary of 
Agriculture as provided for in this section. Tobacco manufacturers 
shall maintain records utilized to prepare the aggreg£ltion for a 
period of 5 years. 
"(c) SCOPE.—Records maintained under this section shall include 
the crop year, grade, type, country of origin, poundage, and such 
other information relating to the tobacco products £is the Secretary 
determines appropriate. 
"(d) REPORTS.—Records, reports, and aggregations submitted to 
the Secretary of Agriculture under this section shall be provided by 
the Secretary to the Committee on Agriculture of the House of 
Representatives and the Committee on Agriculture, Nutrition, and 
Forestry of the Senate, in a timely manner. 
"(e) PENALTY.—Any exporter who violates the provisions of this 
section with respect to the provision of false information or the 
failure to provide required information shall be subject to section 
1001 of title 18, United States Code, for each such violation. 
"(f) CoNFiDENTiALrry OF INFORMATION.—The pKersonally identifi-
able information contained in reports under this section may be 
withheld in accordance with section 552(bX4) of title 5, United States 
C!ode. Any officer or employee of the Department of Agriculture who 
knowingly discloses confidential information as defined by section 
1905 of title 18, United States (Dode, shall be subject to section 1905 
of title 18, United States Code. Nothing in this subsection shall be 
construed to authorize the withholding of information from Con-
gress.". 
SEC. 1558. REPORT ON ORIGIN OF EXPORTS OF PEANUTS. 
7 USC 958. 
(a) EXPORTERS OF PEANUTS.—Any exporter of raw peanuts, shelled 
or in shell, shall indicate the country of origin of such peanuts on 
the export documentation that such exporter is required to complete 
under other provisions of law. 
(b) COLLECTION OF INFORMATION.—The Secretary of Agriculture 
shall collect the information contained on such export documenta-
tion and annually report to the Committee on Agriculture of the 
House of Representatives and the Committee on Agriculture, Nutri-
tion, and Forestry of the Senate concerning the country of origin of 
all such peanuts exported from the United States during the cal-
endar year. 
104 STAT. 3700 
PUBLIC LAW 101-624—NOV. 28, 1990 
(c) CONFIDENTIALITY OF INFORMATION.—The personally identifiable 
information contained in reports under this section may be withheld 
in accordance with section 552(bX4) of title 5, United States Code. 
Any officer or employee of the Department of Agriculture who 
knowingly discloses confidential information as defined by section 
1905 of title 18, United States Code, shall be subject to section 1905 
of title 18, United States Code. Nothing in this subsection shall be 
construed to authorize the withholding of information from Con-
gress. 
SEC. 1559. SENSE OF CONGRESS CONCERNING REBALANCING PROPOSAL 
OF THE EUROPEAN COMMUNITY. 
(a) FINDINGS.—Congress finds that— 
(1) the success of the agriculture negotiations under the Uru-
guay Round of the General Agreement on Tariffs and Trade 
(GATT) is important to the liberalization of world agricultural 
trade and the development of the markets for United States 
commodities; 
(2) in order to correct distortions and restrictions in world 
agricultural markets, the participants in GATT negotiations 
have committed to substantial and progressive reductions in 
agricultural protection and support; 
(3) the history of establishing more market-oriented trade 
since World War II has been progressive liberalization through 
a series of multilateral trade negotiations; 
(4) the European Community's proposal to "rebalance" import 
protections could actually permit the European Community to 
increEise import barriers for some products, including products 
which have enjoyed barrier free trade status as a result of 
earlier trade negotiations; 
(5) this rebalancing proposal could pose a particularly severe 
threat to United States exports of corn gluten feed and oilseeds 
to the European Community, products whose duty-free status 
the European Community has long sought to undercut; and 
(6) the European Community market for United States ex-
ports of corn gluten feed and oilseeds has been a successful 
fixture of United States-European Community trade relations 
for approximately 30 years, and should not be restricted. 
(b) SENSE OF CONGRESS.—It is the sense of Congress that— 
(1) the European Community's proposed rebalancing of 
import protections is fundamentally at odds with the important 
goals of liberalizing world Eigricultural trade and eliminating 
trade-distorting policies; 
(2) such rebalancing could have a particularly severe impact 
on United States exports of corn gluten feed and oilseeds to the 
European Community, leaving them vulnerable to unfair treat-
ment and incresised trade barriers; and 
(3) the United States, throughout the remainder of the Uru-
guay Round of the GATT negotiations on e^iculture, should 
forcefully 
reject the European Community's proposal to 
rebalance import protections. 
SEC. 1560. SENSE OF THE SENATE REGARDING MULTILATERAL TRADE 
NEGOTIATIONS. 
(a) IN GENERAL.—It is the sense of the Senate that the objective of 
the Uruguay Round of Multilateral Trade Negotiations concerning 
agricultural trade should be to— 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3701 
(1) obtain a reform of global agricultural trade and an elimi-
nation of the policies and practices that distort agricultural 
trade; and 
(2) to reach an agreement that— 
(A) provides United States farmers and agricultural 
community with the opportunity to compete fairly in inter-
national markets; 
(B) permits United States farmers to have a safety net to 
protect them against market instability; 
(C) assures consumers of an adequate supply of high 
quality food and fiber at reasonable prices, both now and in 
the future; and 
(D) assures that humanitarian food needs are met. 
(b) Ck)NDucT OF NEGOTIATIONS.—It is the sense of the Senate that, 
in conducting the agricultural trade negotiations in the Uruguay 
Round of Multilateral Trade Negotiations and in meeting the prin-
cipal negotiating objectives contained in section 1101(b) of the Omni-
bus Trade and Competitiveness Act of 1988 and in this section, the 
United States should— 
(1) ensure that any agreement— 
(A) is beneficial to United States agricultural producers 
and businesses; 
(B) does not leave an individual commodity vulnerable to 
unfair treatment or increased barriers and that the various 
sectors of United States agriculture receive equitable and 
fair treatment; 
(C) permits countries to provide income support and 
stability from the vagaries of the market directly or in-
directly through self-help efforts; 
(D) provides a period of adjustment in cases where the 
reduction or elimination of trade barriers or subsidies 
would cause industry adjustment and resource reallocation; 
and 
(E) does not sacrifice the interests of the agricultural 
sector for other sectors of the United States economy; 
(2) seek the immediate elimination of all export subsidies that 
are conditioned on the export of agricultural commodities and 
products, except bona fide food aid; 
(3) not enter into any self-executing agreement that would 
unduly restrict the authority of the United States to provide for 
the stabilization of its agricultural economy; 
(4) not enter into any agreement that would have the effect of 
repealing or materially interfering with any existing legal 
authority designed to promote or protect any domestic agricul-
tural program, the purpose of which is to stabilize prices, or 
> 
eliminate any existing waiver granted to the United States 
under the General Agreement on Tariffs and Trade permitting 
the imposition of quantitative limitations on the entry of 
commodities into the United States unless the agreement meets 
the objectives described in this section; and 
(5) ensure that any proAdsion for special and differential 
treatment for developing countries contains guidelines and 
limitations providing for the phasing out of such treatment as 
such countries become more competitive. 
104 STAT. 3702 
PUBLIC LAW 101-624—NOV. 28, 1990 
Subtitle F—Conforming Provisions and 
Technical Changes 
SEC. 1571. AMENDMENTS TO THE OMNIBUS TRADE AND COMPETITIVE-
NESS ACT OF 1988. 
The Omnibus Trade and Competitiveness Act of 1988 is amended 
by repealing sections 4201, 4202, 4205, 4206, 4211, 4212, 4213, 4305, 
and 4311 (7 U.S.C. 5211, 5212, 5215, 5216, 5231, 5232, 5233, 1736t 
note, and 1691 note, respectively). 
SEC. 1572. AMENDMENTS TO THE FOOD SECURITY ACT OF 1985. 
The Food Security Act of 1985 is amended— 
(1) in section 1110 (7 U.S.C. 17360)— 
(A) by striking subsection (j); and 
(B) by redesignating subsection (k) as subsection (j); 
' 
(2) in section 1113(cX9) (7 U.S.C. 1736-l(cX9))— 
(A) by adding "and" after the semicolon in subparagraph 
(A); 
(B) by striking subparagraph (B); and 
(C) by redesignating subparagraph (C) as subparagraph 
(B); and 
(3) by repealing sections 1124, 1125, 1127, 1128, 1132, 1151, 
1162, 1165, and 1167 (7 U.S.C. 1736s, 1736t, 1736v, 1736w, 1736x, 
2275,1736z, 1736, and 1736aa). 
SEC. 1573. AMENDMENTS TO THE AGRICULTURE AND FOOD ACT OF 1981. 
The Agriculture and Food Act of 1981 is amended by repealing 
sections 1203, 1204, and 1205 (7 U.S.C. 17361, 1736j, and 1736k). 
SEC. 1574. AMENDMENT TO THE FOOD FOR PEACE ACT OF 1966. 
The Food for Peace Act of 1966 is amended by repealing section 4 
(7 U.S.C. 1707a). 
SEC. 1575. AMENDMENT TO THE AGRICULTURAL ACT OF 1949. 
The Agricultural Act of 1949 is amended by striking subsection (d) 
of section 416 (7 U.S.C. 1431(d)). 
SEC. 1576. AMENDMENT TO THE AGRICULTURAL ACT OF 1956. 
Section 201 of the Agricultural Act of 1956 (7 U.S.C. 18510>)) is 
amended by striking subsection Qi). 
SEC. 1577. AMENDMENT TO THE AGRICULTURAL TECHNICAL CORREC-
TIONS ACT. 
Section 13 of Public Law 101-220 (7 U.S.C. 1736cc) is repealed. 
SEC. 1578. AMENDMENT TO THE AGRICULTURAL ACT OF 1970. 
Section 812 of the Agricultural Act of 1970 (7 U.S.C. 612c-3) is 
repealed, effective upon the effective date of regulations promul-
gated under section 404 of the Agricultural Trade Act of 1978, as 
amended by this title. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3703 
TITLE XVI—RESEARCH 
Subtitle A—Extensions and Changes to 
Existing Programs 
SEC. 1601. INCREASED AUTHORIZATIONS FOR, AND THE EXTENSION OR 
REPEAL OF, EXISTING PROGRAMS. 
(a) AGRICULTURAL RESEARCH FACILITIES GRANTS.—Section 4(a) of 
the Research Facilities Act (7 U.S.C. 390c(a)) is amended— 
(1) by striking "$20,000,000" and inserting "$50,000,000"; and 
(2) by striking "ending September 30, 1986, through Septem-
ber 30,1990" and inserting "1991 through 1995". 
O
t
>
) EXTENSION OF PROGRAMS ESTABLISHED IN THE NATIONAL AGRI-
CULTURAL RESEARCH, EXTENSION, AND TEACHING POLICY ACT OF 
1977.— 
(1) ANIMAL HEALTH AND DISEASE CONTINUING RESEARCH.—Sec-
tion 1433(a) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3195(a)) is amended by 
striking "annually for the period beginning October 1,1981, and 
ending September 30,1990," and inserting "for each of the fiscal 
years 1991 through 1995,". 
(2) ANIMAL HEALTH AND DISEASE NATIONAL OR REGIONAL RE-
SEARCH.—Section 1434(a) of that Act (7 U.S.C. 3196(a)) is amend-
ed by striking "annually for the period beginning October 1, 
1981, and ending September 30, 1990," and inserting "for each 
of the fiscal years 1991 through 1995,". 
(3) AGRICULTURAL RESEARCH PROGRAMS.—Section 1463 of that 
Act (7 U.S.C. 3311) is amended— 
(A) in subsection (a), by striking "$600,000,000" and all 
that follows through "1990." and inserting "$850,000,000 for 
each of the fiscal years 1991 through 1995."; and 
(B) in subsection (b), by striking "$270,000,000" and all 
that follows through "1990." and inserting "$310,000,000 for 
each of the fiscal years 1991 through 1995.". 
(4) EXTENSION EDUCATION.—Section 1464 of that Act (7 U.S.C. 
3312) is amended by striking "$370,000,000" and all that follows 
through the period and inserting "$420,000,000 for fiscal year 
1991, $430,000,000 for fiscal year 1992, $440,000,000 for fiscal 
year 1993, $450,000,000 for fiscal year 1994, and $460,000,000 for 
fiscal year 1995.". 
(5) SUPPLEMENTAL AND ALTERNATIVE CROPS RESEARCH.—Sec-
tion 1473D(a) of that Act (7 U.S.C. 3319d(a)) is amended by 
striking "1990" and inserting "1995". 
(6) RANGELAND RESEARCH ADVISORY BOARD.—Section 1482(a) of 
that Act (7 U.S.C. 3335(a)) is amended by striking "1990," and 
inserting "1995,". 
(7) RANGELAND RESEARCH.—Section 1483(a) of that Act (7 
U.S.C. 3336(a)) is amended by striking "annually for the period 
beginning October 1,1981, and ending September 30,1990." and 
inserting "for each of the fiscal years 1991 through 1995.". 
(c) DAIRY GOAT RESEARCH.—Section 1432(bX5) of the National 
Agricultural Research, Extension, and Teaching Policy Act Amend-
ments of 1981 (7 U.S.C. 3222 note) is amended by striking "ending 
September 30, 1986, through September 30, 1990," and inserting 
"1991 through 1995,". 
104 STAT. 3704 
PUBLIC LAW 101-624—NOV. 28, 1990 
(dXD GRANTS TO UPGRADE 1890 LAND-GRANT COLLEGE EXTENSION 
FACILITIES.—Section 1416(b) of the Food Security Act of 1985 (7 
U.S.C. 3224(b)) is amended by striking "ending September 30, 1986, 
through September 30,1990," and inserting "1991 and 1992,". 
(2) FEDERAL AGRICULTURAL RESEARCH FACILITIES.—Section 1431 of 
that Act (99 Stat. 1556) is amended— 
(A) in subsection (a), by striking "ending September 30, 1988, 
through September 30, 1990," and inserting "1991 through 
1995,"; and 
(B) in subsection O
t
>
)
, by striking "ending September 30, 1986, 
through September 30, 1990," and inserting "1991 through 
1995,". 
(e) CRITICAL AGRICULTURAL MATERIALS RESEARCH.—Section 16 of 
the Critical Agricultural Materials Act (7 U.S.C. 178n) is amended— 
(1) by striking subsection (a) and inserting the following: 
Appropriation 
"(a) There are authorized to be appropriated to the Secretary of 
authorization. 
Agriculture such sums as are necessary to carry out this Act in each 
of the fiscal years 1991 through 1995."; and 
(2) by striking subsection (b); 
(3) in subsection (c), by striking "subsections (a) and 0?)" and 
inserting "subsection (a)"; and 
(4) by redesignating subsections (c), (d), and (e) as subsections 
Ot)), (c), and (d), respectively. 
(f) Repeal of Programs Established in the National Agricultural 
Research, Extension, and Teaching Policy Act of 1977.— 
(1) REPEALS.—The National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3101 et seq.) is 
amended— 
(A) by repealing section 1402 (7 U.S.C. 3101) relating to 
Congressional findings; 
(B) by striking subsection (c) of 1409A (7 U.S.C. 3124a) and 
redesignating subsections (d) and (e) of that section as 
subsections (c) and (d), respectively; 
(C) by repealing section 1413A (7 U.S.C. 3129) relating to 
biomass energy; 
(D) by repealing subtitle H (7 U.S.C. 3241-3282) relating 
to solar energy research and development; 
(E) by repealing section 1473B (7 U.S.C. 3319b) relating to 
technology development for small- and medium-sized farm-
ing operations; and 
(F) by repealing section 1473C (7 U.S.C. 3319c) relating to 
the special technology development research program. 
(2) CLERICAL AMENDMENTS.—The table of contents of the Food 
and Agriculture Act of 1977 (Public Law 95-113; 91 Stat. 913) is 
amended— 
(A) in the item relating to subtitle A, by striking "Find-
ings,"; 
(B) by striking the items relating to section 1402 and 
1413A; 
(C) by striking the item relating to subtitle H of title XIV 
and the items relating to the parts and sections of that 
subtitle; and 
(D) by striking the items relating to sections 1473B and 
1473C. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3705 
SEC. 1602. PURPOSES OF THE AGRICULTURAL RESEARCH AND EXTEN-
SION SYSTEM. 
(a) STATEMENT OF PURPOSES.—The National Agricultural Re-
search, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3101) is 
amended by inserting before section 1403 the following new section: 
"SEC. 1402. PURPOSES OF AGRICULTURAL RESEARCH AND EXTENSION. 
7 USC 3101. 
"Subject to the varying conditions and needs of States, Federally 
funded agricultural research and extension programs shall be de-
signed to, among other things, accomplish the following— 
"(1) continue to satisfy human food and fiber needs; 
"(2) enhance the long-term viability and competitiveness of 
the food production and agricultural system of the United 
States within the global economy; 
"(3) expand economic opportunities in rural America and 
enhance the quality of life for farmers, rural citizens, and 
society as a whole; 
"(4) improve the productivity of the American £igricultural 
system and develop new agricultural crops and new uses for 
agricultural commodities; 
"(5) develop information and systems to enhance the environ-
ment and the natural resource base upon which a sustainable 
agricultural economy depends; or 
"(6) enhance human health— 
"(1) by fostering the availability and affordability of a 
safe, wholesome, and nutritious food supply that meets the 
needs and preferences of the consumer; and 
"(2) by assisting farmers and other rural residents in the 
detection and prevention of health and safety concerns.". 
O
t
>
) CONFORMING AMENDMENT.—Section 1403 of the National Agri-
cultural Research, Extension, and Teaching Policy Act of 1977 (7 
U.S.C. 3102) is amended by striking the section heading and "SEC. 
1403." and inserting the following: 
"SEC. 1403. ADDITIONAL PURPOSES OF AGRICULTURAL RESEARCH AND 
EXTENSION.". 
(c) CLERICAL AMENDMENTS.—The table of contents of the Food 
and Agriculture Act of 1977 (Public Law 95-113; 91 Stat. 913) is 
amended— 
(1) by inserting before the item relating to section 1403 the 
following new item: 
"Sec. 1402. Purposes of agricultural research and extension."; and 
(2) by striking the item relating to section 1403 and inserting 
the following new item: 
"Sec. 1403. Additional purposes of agricultural research and extension.". 
SEC. 1603. DEFINITIONS. 
Section 1404 of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3103) is amended— 
(1) by striking "and" at the end of paragraph (15); 
(2) by inserting "G," after "subtitles E," in paragraph (16); 
and 
(3) by adding at the end the following new paragraphs: 
"(17) the term 'sustainable agriculture' means an integrated 
system of plant and animal production practices having a site-
specific application that will, over the long-term— 
"(A) satisfy human food and fiber needs; 
104 STAT. 3706 
PUBLIC LAW 101-624—NOV. 28, 1990 
"(B) enhance environmental quality and the natural re-
source base upon which the agriculture economy depends; 
"(C) make the most efficient use of nonrenewable re-
sources and on-farm resources and integrate, where appro-
priate, natural biological cycles and controls; 
"(D) sustain the economic viability of farm operations; 
and 
"(E) enhance the quality of life for farmers and society as 
a whole; and 
"(18) the term 'Technology Board' means the Agricultural 
Science Technology Review Board established in section 
1408A.". 
SEC. 1604. JOINT COUNCIL ON FOOD AND AGRICULTURAL SCIENCES AND 
NATIONAL AGRICULTURAL RESEARCH AND EXTENSION 
USERS ADVISORY BOARD. 
(a) JOINT COUNCIL.—Section 1407 of the National Agricultural 
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
3122(a)) is amended to read as follows: 
"SEC. 1407. JOINT COUNCIL ON FOOD AND AGRICULTURAL SCIENCES. 
"(a) ESTABLISHMENT.—The Secretary shall establish within the 
Department of Agriculture a committee to be known as the Joint 
CouncU on Food and Agricultural Sciences which shall remain in 
existence until September 30,1995. 
"OJ) MEMBERSHIP.—The Joint Council shall be composed of not less 
than 21 representatives of organizations or agencies which conduct 
or assist in conducting programs of research, extension, or teaching 
in the food and agricultural sciences, including the following: 
"(1) Six representatives from State cooperative institutions, 
including at least one from institutions eligible to receive funds 
under the Act of August 30,1890 (7 U.S.C. 321 et seq.), including 
Tuskegee University. 
"(2) Four representatives from agencies within the Depart-
ment of Agriculture which have significant research, extension, 
and teaching responsibilities. 
"(3) One representative from public colleges and universities 
having a demonstrable capacity to carry out food and agricul-
tural research, extension, or teaching. 
"(4) One representative from colleges and 
universities 
conducting research related to the food and agricultural 
sciences. 
"(5) Three representatives from private organizations or cor-
porations conducting research in the food and agricultural sci-
ences, including one representative from the food processing 
industry involved in food technology research. 
"(6) One representative from among foundations funding re-
search in the food and sigricultural sciences. 
"(7) One representative from among farmers, rginchers, and 
other producers of domestic agricultural commodities. 
"(8) One representative from the Office of Science and Tech-
nology Policy. 
"(9) Two representatives from other Federal agencies deter-
mined by the Secretary to be appropriate. 
"(10) One representative from the National Academy of 
Sciences. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3707 
"(11) To the extent the Joint Council is composed of more 
than 21 members, representatives of other public and private 
institutions, producers, and representatives of the public who 
are interested in and have the potential to contribute to (as 
determined by the Secretary) the formulation of national policy 
in the food and agricultural sciences. 
"(c) ADMINISTRATIVE PROVISIONS.— 
"(1) TERMS.—Members of the Joint Council shall be appointed 
for a term of up to three years by the Secretary from nomina-
tions made by the organizations and agencies described in 
subsection (b). The terms of the members shall be staggered. 
"(2) CHAIRPERSON.—The Joint Council shall be jointly chaired 
by the Assistant Secretary of Agriculture for research, exten-
sion, and teaching, and a person to be elected from among the 
non-Federal membership of the Joint Council. 
"(3) MEETINCJS.—The Joint Council shall meet at legist once 
during each three-month period. At least one meeting each year 
shall be a combined meeting with the Advisory Board. The 
meetings of the Joint Council shall be publicly announced in 
advance and shall be open to the public. Appropriate records of 
the activities of the Joint Council shall be kept and made 
available to the public on request. 
"(d) PRIMARY RESPONSIBIUTY.—The primary responsibility of the 
Joint Council is to bring about more effective research, extension, 
and teaching in the food and agricultural sciences in the United 
States by improving the planning and coordination of publicly and 
privately supported food and agricultural science activities and by 
relating Federal budget development and program management to 
these processes. 
"(e) OTHER RESPONSIBIUTIES.—The responsibilities of the Joint 
Council shall also include the following: 
"(1) Provide a forum for the interchange of information 
among the organizations represented by the members of the 
Joint Ck)uncil that will assure improved awareness among these 
organizations concerning the agricultural research, extension, 
and teaching programs, results, and directions of each 
organization. 
"(2) Analyze and evaluate the economic, environmental, and 
social impacts of agricultural research, extension, and teaching 
programs conducted in the United States. 
"(3) Determine high priority issues and goals for agricultural 
research, extension, and teaching programs, and submit annual 
reports identifying such high priority issues and goals to the 
Secretary and to Congress. 
"(4) Develop and review the effectiveness of a system, for use 
by the Secretary, of compiling, maintaining, and disseminating 
information about each federally supported agricultural re-
search or extension project and, to the maximum extent pos-
sible, information about private agricultural research and 
extension projects conducted by colleges and universities, 
foundations, contract research groups, businesses, and others. 
Information about private agricultural research and extension 
shall not be included in this system unless they are partially or 
entirely funded by the Federal Government or the organizations 
sponsoring the projects agree to the inclusions of information 
about such projects. 
Records. 
Public 
information. 
Reports. 
39-194 O - 91 - 13 : QL 3 Part 5 
104 STAT. 3708 
PUBLIC LAW 101-624—NOV. 28, 1990 
"(5) Assist the parties in developing, reviewing, and evaluat-
ing memoranda of understanding or other documents that 
detail the terms and conditions between the Secretary and the 
participants in agricultural research, extension, and teaching 
programs under this Act and other Acts. 
"(6) Assist the Secretary in carrying out the responsibilities 
assigned to the Secretary under this title through planning and 
coordination in the food and agricultural sciences, by using, 
wherever possible, the existing regional research, extension, 
and teaching organizations of State cooperative institutions to 
provide regional planning and coordination, and by the develop-
ment of recommendations and reports describing current and 
long-range needs, priorities, and goals in the food and agricul-
tural sciences and means to achieve these goals. 
"(7) Coordinate with the Secretary in assessing the current 
status of, and developing a plan for, the effective transfer of new 
technologies to the farming community; 
"(8) In consultation with the Users Advisory Board— 
"(A) provide an annual review and prioritize requests for 
agricultural related specied grants and construction grants; 
"(B) provide an annual review of the competitive grants 
made by the Secretary to determine priority research and 
grsint categories and types that best advance the purposes 
expressed in section 1402; and 
"(C) review and make budget recommendations on the 
research, extension, and teaching budgets for the Agricul-
tural Research Service, the Forest Service, the Economic 
Research Service, the Extension Service, the National Agri-
cultural Library, the Cooperative State Research Service, 
and other department agencies. 
"(f) REPORTS.— 
"(1) ANNUAL REPORT.—Not later than June 30 of each year, 
the Joint Council shall prepare a report specif5dng its conclu-
sions on— 
"(A) priorities for food and agricultural research, exten-
sion, and teaching programs; 
"(B) suggested areas of responsibility among Federal, 
State, and private organizations in carr5dng out such 
programs; 
"(C) the levels of financial and other support needed to 
carry out such programs; 
"(D) the progress made toward accomplishing the prior-
ities and associated levels of financial and other support 
recommended in the annual report issued in the prior year; 
and 
"(E) the activities of the Board in meeting its responsibil-
ities under this section. 
"(2) FIVE-YEAR PLAN.—Not later than November 30, 1990, the 
Joint Council shall prepare a report outlining a five-year plan 
for food and agricultural sciences that reflects the coordinated 
views of the research, extension, and teaching community. The 
Joint Council shall update this plan every two years thereafter 
in reports reflecting the progress being made toward im-
plementing the plan. 
"(3) SUBMISSION OF REPORTS.—Each report prepared under 
this subsection shall be submitted to the Secretary. Minority 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3709 
views, if timely submitted, shall be included in each such 
report.". 
(b) USERS ADVISORY BOARD.—Section 1408 of the National Agricul-
tural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
3123) is amended to read as follows: 
"SEC. 1408. NATIONAL AGRICULTURAL RESEARCH AND EXTENSION 
7 USC 3123. 
USERS ADVISORY BOARD. 
"(a) ESTABLISHMENT.—The Secretary shall establish within the 
Department of Agriculture a board to be known as the National 
Agricultural Research and Extension Users Advisory Board which 
shall remain in existence until September 30,1995. 
"(b) MEMBERSHIP.—The Advisory Board shall be composed of 21 
memjjers appointed by the Secretary. The members shall be ap-
pointed to serve staggered terms, in a manner determined appro-
priate by the Secretary. The members of the Advisory Board shall 
consist of the following: 
"(1) One member who is a producer representing farm co-
operatives. 
"(2) Two members who are producers representing general 
farm organizations. 
"(3) Four members who are producers representing agricul-
tural commodities, forest product, and aquacultural product 
groups from various geographic regions. 
"(4) One member representing agricultural farm suppliers. 
"(5) One member representing food and fiber processors. 
"(6) One member representing animal health interests. 
"(7) One member engaged in transportation of food and agri-
cultural products to domestic or foreign markets. 
"(8) One member representing labor organizations primarily 
concerned with the production, processing, distribution, or 
transport of food and agricultural products. 
"(9) One member representing food marketing interests. 
"(10) One member representing private nonprofit organiza-
tions and foundations involved in agricultural research, sustain-
able agricultural research, education, and extension. 
"(11) One member representing private sector organizations 
involved in development programs and issues in developing 
countries. 
"(12) One member representing agencies of the Department of 
Agriculture that do not have research capabilities. 
"(13) One member engaged in rural development work. 
"(14) One member engaged in human nutrition work. 
"(15) Two members representing consumer interests, includ-
ing one member who represents nonprofit consumer advocacy 
organizations. 
"(16) One member representing nonprofit environmental 
protection organizations. 
"(c) CHAIRPERSON; VICE-CHAIRPERSON.—At the first meeting each 
year of the Advisory Board, the members of the Advisory Board 
shall elect a chairperson and vice-chairperson from the members. 
The chairperson and vice-chairperson shall serve in such positions 
for a term of one year. 
"(d) MEETINGS.—The Advisory Board shall meet a sufficient 
number of times each year to carry out its responsibilities under 
subsection (f). At least one meeting each year shall be held as a 
combined meeting with the Joint Council. 
104 STAT. 3710 
PUBLIC LAW 101-624—NOV. 28, 1990 
"(e) PANELS.—The Advisory Board may establish such panels as 
the Advisory Board considers appropriate to develop information, 
reports, advice, and recommendations for the use of the Advisory 
Board in meeting the responsibilities of the Advisory Board. Mem-
bers of such panels may include members of the Advisory Board, 
Advisory Board staff members, individuals from the Department of 
Agriculture and other departments and agencies of the Federal 
government, and individuals from the private sector who have 
expertise in the subject to be examined by the panel. 
"(f) RESPONSIBILITIES.— 
"(1) ADVISORY OPINIONS.—The Advisory Board shall have gen-
eral responsibility for preparing independent advisory opinions 
on the food and agricultural sciences. 
"(2) SPECIFIC DUTIES.—The Advisory Board shall have specific 
responsibility to perform the following duties: 
"(A) Review the policies, plans, and goals of programs within 
the Department of Agriculture involving the food and sigricul-
tural sciences, and related programs in other Federal and State 
departments and agencies and in the colleges and universities 
developed by the Secretary under this title. 
"(B) Review and assess the extent of agricultural research, 
teaching, and extension being conducted by the private sector 
and the relationships and coordination of such activities with 
Federally supported agricultural research, teaching, and exten-
sion programs. 
"(C) Review and provide consultation to the Secretary on 
national policies, priorities, and strategies for agricultural re-
search and extension for both the short and long term. 
"(D) Assess the overall adequacy of the distribution of re-
sources and the allocation of funds for the gigricultural research, 
extension, and teaching activities of the Department of Agri-
culture and make recommendations with regard to such dis-
tribution and allocation to the Secretary, Federal sigencies, and 
private orgeinizations that are contributing to the funding of 
agricultural research, extension, and teaching. 
"(E) Identify emerging agricultural research, teaching, and 
extension issues and suggest programs and technology transfer 
solutions for use by the public and private agricultural science 
and education community. 
"(F) Evaluate the results and the effectiveness of research and 
extension programs with regard to their influence on long-term 
goals of eigriculture expressed in sections 1402 and 1403 and 
consumer needs. 
"(g) REPORTS BY THE ADVISORY BOARD.— 
"(1) 
EXAMINATION OF FEDERALLY SUPPORTED AGRICULTURAL 
RESEARCH AND EXTENSION PROGRAMS.—Not later than July 1 of 
each year, the Advisory Board shall provide an oral briefing to 
the Secretary (by the chairperson of the Advisory Board) and a 
written report to Congress and the Secretary of recommenda-
tions concerning the allocation of responsibilities and levels of 
funding among Federally supported eigricultural research and 
extension programs. The Advisory Board shall include in each 
oral briefing and written report prepared under this para-
graph— 
"(A) a review and assessment of the allocation of funds 
for agricultural research and extension made for the 
preceding fiscal year by the Department of Agriculture; 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3711 
"(B) an evaluation of— 
"(i) the effectiveness of coordination of Federal and 
private research initiatives; 
"(ii) new research and extension programs that need 
to be conducted by the research system; £ind 
"(iii) the effectiveness of the private and public re-
search and extension system; and 
"(C) minority views, if timely submitted. 
"(2) REVIEW OF BUDGET AND SECRETARY'S REPORT.—Not later 
than February 20 of each year, the Advisory Board shall submit 
to the President, the Committees on Agriculture £uid Appropria-
tions of the House of Representatives, and the Committees on 
Agriculture, Nutrition, and Forestry and Appropriations of the 
Senate a report containing— 
"(A) an appraisal by the Advisory Board of the proposed 
budget of the President for the food and agricultural sci-
ences for the fiscal year beginning in the year that report is 
submitted; 
"(B) the recommendations of the Secretary contained in 
the annual report submitted by the Secretary pursuant to 
section 1410; and 
"(C) separate views of members of the Advisory Board, if 
timely submitted. 
"(3) REQUIREMENT OF REPORTS.—Each report prepared by the 
Advisory Board shall list the membership of the Advisory Board 
as of the time the report was prepared, including the organiza-
tional and employment affiliation of each member of the Ad-
visory Board. 
"(h) REPORT BY SECRETARY.—Not later than February 1 of each 
year, the Secretary shall submit to the Committee on Agriculture of 
the House of Representatives and the Committee on Agriculture, 
Nutrition, and Forestry of the Senate a report that describes the 
manner in which the recommendations of the Advisory Board have 
been incorporated into the budget and programs of the Department 
of Agriculture.". 
SEC. 1605. AGRICULTURAL SCIENCE AND TECHNOLOGY REVIEW BOARD. 
(a) IN GENERAL.—The National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3101) is amended by 
inserting after section 1408 the following new section: 
"SEC. 1408A. AGRICULTURAL SCIENCE AND TECHNOLOGY REVIEW BOARD. 7 USC 3123a. 
"(a) ESTABLISHMENT.—The Secretary, acting through the Joint 
Council, shall establish and oversee an Agricultural Science Tech-
nology Review Board. 
"(b) MEMBERSHIP.— 
"(1) COMPOSITION.—The Technology Board shall be composed 
of 11 individuals, to be appointed by the Secretary, who have 
expertise in technology assessment, environmental sciences, 
international agricultural issues, the social sciences, agricul-
tural sciences (both basic and applied), technology transfer, and 
education, including representatives of^ 
"(A) the Agricultural Research Service; 
"(B) the Cooperative State Research Service; 
"(C) the Extension Service; 
104 STAT. 3712 
PUBLIC LAW 101-624—NOV. 28, 1990 
"(D) private foundations and nonprofit organizations who 
have expertise in agricultural research, education, and 
technolo^ transfer; 
"(E) private agricultural research and technology trans-
fer firms; and 
"(F) the Land Grant University System. 
"(2) MANNER OF APPOINTMENT.—The Secretary shall appoint 
members of the Technology Board in a manner determined to 
be appropriate by the Secretary. 
"(3) 
PRIVATE SECTOR REPRESENTATION.—A majority of 
the 
members of the Technology Board appointed under paragraph 
(1) shall be from the private sector. 
"(4) TERM.—Members of the Technology Board shall serve for 
staggered terms of 3 years, as determined appropriate by the 
Secretary. 
"(5) CHAIRPERSON.—The Technology Board shall select a 
chairperson from its membership, who shall serve in that posi-
tion for a term of 1 year. 
"(c) TECHNICAL INTERPRETATION AND ASSESSMENTS.— 
"(1) IN GENERAL.—The Technology Board shall— 
"(A) provide technical interpretation and translation of 
current and emerging agricultural and environmental sci-
ence issues for use by the Joint Council and the Advisory 
Board in setting priorities and conducting evaluations; and 
"(B) provide technology assessment of current and emerg-
ing public and private agricultural research and technology 
transfer initiatives, including emerging technologies from 
private industry and public institutions that would influ-
ence agriculture, environment, nutrition, and the broad 
social, economic, and health consequences on urban and 
rural communities. 
"(2) ASSESSMENTS.—The Technology Board may conduct 
assessments to consider to what extent agricultural research 
and extension programs foster— 
"(A) the development of farming systems that most effec-
tively take advantage of natural processes and beneficial 
biological interactions and other sustainable agriculture 
techniques; 
"(B) genetics research that results in crop varieties and 
livestock 
that 
enhance 
management 
options, 
farm 
productivity, use of inputs, and a diversity of products that 
can be marketed by the farm operator; 
"(C) research to develop farming systems appropriate to 
climatological uncertainty; 
"(D) research to increase the demsuid for current farm 
products, and to develop new farm crops and enterprises, 
that are economically and environmentally advantageous 
and enhance agricultural diversity; 
"(E) research to enhance economic and societal well-
being; 
"(F) research that develops rural economic development 
strategies that build on the entrepreneurial skills, self-
employment tradition, and the resource base of rural 
communities and extension programs to disseminate those 
strategies; 
"(G) innovative extension and education programs that 
transfer new technology to the rural community including 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3713 
small- and moderate-sized family farmers and potential 
beginning and minority farmers with limited resources; and 
"(H) extension programs that substantially involve a 
broad range of interested individuals, commodity groups, 
agri-industry groups, farm groups, rursil organizations, 
community groups, farmerworkers, and environmental 
organizations to broaden input into research and extension 
priority setting. 
"(d) TECHNOLOGY ASSESSMENT REPORT.— 
"(1) IN GENERAL.—Not later than December 31 of each year, 
the Technology Board shall prepare a report that contains a 
technology assessment of emerging public and private agricul-
tural research initiatives and activities, including— 
"(A) recommendations on how such research would be 
best directed to advance the purposes set forth in section 
1402; and 
"(B) an assessment of activities conducted by the Sec-
retary, research components of public and private colleges 
and universities, and emerging private agricultural re-
search initiatives. 
"(2) RECIPIENTS.—The Technology Board shall submit the 
report required under paragraph (1) to the appropriate Commit-
, tees of Congress, to the Secretary, to the heads of other Federal 
agencies who support agricultural research, and (on request) to 
private organizations who have a significant involvement in 
agricultural research. 
"(3) MINORITY VIEWS.—The Technology Board shall include 
minority views in the report, if timely submitted.", 
(b) CONFORMING AMENDMENTS.— 
(1) SUPPORT.—Section 1412 of that Act (7 U.S.C. 3127) is 
amended— 
(A) by striking the heading and "SEC. 1412." and inserting 
the following: 
•SEC. 1412. SUPPORT FOR THE JOINT COUNCIL, ADVISORY BOARD, AND 
TECHNOLOGY BOARD."; 
(B) in subsection (a)— 
(i) by striking "and the Advisory Board" in the 
matter preceding the paragraphs and inserting ", the 
Advisory Board, and the Technology Board"; 
(ii) by inserting "and the Technology Board" imme-
diately before the dash; 
(iii) in paragraph (1), by inserting "and the Tech-
nology Board" before "may direct"; 
(iv) in paragraph (2), by striking "Council and" and 
inserting "Council,"; and 
(v) in paragraph (2), by inserting before the period 
the following: ", and one shall serve as the executive 
secretary to the Technology Board"; 
(C) in subsection (b), by striking "and the Advisory 
Board" and inserting ", the Advisory Board, and the Tech-
nology Board"; and 
(D) in subsection (c), by striking "and the Advisory 
Board" and inserting ", the Advisory Board, and the Tech-
nology Board". 
(2) GENERAL PROVISIONS.—Section 1413 of that Act (7 U.S.C. 
3128) is amended— 
104 STAT. 3714 
PUBLIC LAW 101-624—NOV. 28, 1990 
(A) in subsection (a), by striking "or the Advisory Board" 
and inserting ", the Advisory Board, or the Technology 
Board"; 
(B) in subsection (b), by striking "and Advisory Board" 
and inserting ", the Advisory Board, and the Technology 
Board"; and 
(C) by striking subsection (d) and redesignating subsection 
(e) as subsection (d). 
(3) COORDINATION.—Section 1405(12) of that Act (7 U.S.C. 
3121(12)) is amended by inserting ", after coordination with the 
Technology Board," after "establish", 
(4) ANNUAL REPORT OF THE SECRETARY.—Paragraph (2) of sec-
tion 1410 of that Act (7 U.S.C. 3125) is amended to read as 
follows: 
"(2) the recommendations of the Joint Council developed 
under section 1407(f), the recommendations of the Advisory 
Board developed under section 1408(g), and the recommenda-
tions of the Technology Board developed under section 1408A(d); 
and". 
(c) CLERICAL AMENDMENTS.—The table of contents of the Food 
and Agriculture Act of 1977 (Public Law 95-113; 91 Stat. 913) is 
amended— 
(1) by inserting after the item relating to section 1408 the 
following new item: 
"Sec. 1408A. Agricultural Science and Technology Review Board."; 
and 
(2) by striking the item relating to section 1412 and inserting 
the following new item: 
"Sec. 1412. Support for the Joint Council, Advisory Board, and Technology Board.". 
SEC. 1606. NATIONAL AGRICULTURAL LIBRARY. 
(a) IN GENERAL.—The National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3101 et seq.) is amended by 
inserting after section 1410 the following new section: 
7 u s e 3125a. 
"SEC. 1410A. NATIONAL AGRICULTURAL LIBRARY. 
"(a) PURPOSE.—The purpose of this section is to consolidate and 
expand the statutory authority for the operation of the library of the 
Department of Agriculture established pursuant to section 520 of 
the Revised Statutes (7 U.S.C. 2201) as the primary agricultural 
information resource of the United States. 
"0)) EsTABusHMENT.—There is established in the Department of 
Agriculture the National Agricultural Library to serve as the pri-
mary agricultural information resource of the United States. 
"(c) DIRECTOR.—The Secretary shall appoint a Director for the 
National Agricultural Library who shall be subject to the direction 
of the Secretary. 
"(d) FUNCTIONS OF DIRECTOR.—The Director may— 
"(1) acquire, preserve, and manage information and informa-
tion products and services in all phases of sigriculture and allied 
sciences; 
"(2) organize agricultural information and information prod-
ucts and services by cataloging, indexing, bibliographical listing, 
and other appropriate techniques; 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT, 3715 
"(3) provide agricultural information and information prod-
ucts and services to agencies of the Department of Agriculture 
and the Federal Government, public and private organizations, 
and individuals, within the United States and internationally; 
"(4) plan for, coordinate, and evaluate information and li-
brary needs related to agricultural research and education; 
"(5) cooperate with and coordinate efforts among agricultural 
college and university libraries, in conjunction with private 
industry and other agricultural library and information centers, 
toward the development of a comprehensive agricultural library 
and information network; and 
"(6) coordinate the development of specialized 
subject 
information services among the agricultural and library 
information communities. 
"(e) LIBRARY PRODUCTS AND SERVICES.—The Director may— 
"(1) make copies of the bibliographies prepared by the Na-
tional Agricultural Library; 
"(2) make microforms and other reproductions of books and 
other library materials in the Department; 
"(3) provide any other library and information products and 
services; and 
"(4) sell those products and services at such prices (not less 
than the estimated total cost of disseminating the products and 
services) as the Secretary may determine appropriate. 
"(f) RECEIPTS.—Funds received from sales under subsection (e) 
shall be deposited in the Treasury of the United States to the credit 
of the applicable appropriation and shall remain available until 
expended. 
"(g) AGREEMENTS.— 
"(1) IN GENERAL.—The Director may enter into agreement 
with, and receive funds from any State, and other political 
subdivision, organization, business, or individual for the purpose 
of conducting activities to carry out this section. 
"(2) FUNDS.—Funds received under this subsection for pay-
ments for library products and services or other activities shall 
be deposited to the miscellaneous contributed fund account, and 
shall remain available until expended. 
"(h) Authorization of Appropriations.—There are authorized to be 
appropriated for each fiscal year such sums as may be necessary to 
carry out this section.", 
(b) CONFORMING AMENDMENTS.— 
(1) SALES OF COPIES.—The Act of May 23, 1908 (35 Stat. 264, 
chapter 192; 7 U.S.C. 2242) is amended— 
(A) in the second unnumbered paragraph following the 
heading "LIBRARY.", by striking the second sentence; and 
(B) in the second sentence of the second unnumbered 
paragraph following the heading "OFFICE OF EXPERIMENT 
STATIONS.", by striking "the Secretary of Agriculture here-
after may furnish" and all that follows through "mis-
cellaneous receipts; and". 
(2) SALES OF COPIES.—The Act of March 4, 1915 (38 Stat. 1109, 
chapter 144; 7 U.S.C. 2242) is amended by striking the eleventh 
unnumbered paragraph following the heading "STATES RELA-
TIONS SERVICE.". 
(3) SALES OF COPIES.—Section 708 of the Act of September 21, 
1944 (58 Stat. 742, chapter 412; 7 U.S.C. 2244) is repealed. 
relations. 
104 STAT. 3716 
PUBLIC LAW 101-624—NOV. 28, 1990 
(c) CLERICAL AMENDMENT.—The table of contents of the Food and 
Agriculture Act of 1977 (Public Law 95-113; 91 Stat. 913) is amended 
by inserting after the item relating to section 1410 the following new 
item: 
"Sec. 1410A. National Agricultural Library.". 
SEC. 1607. GRANTS TO ENHANCE RESEARCH CAPACITY IN SCHOOLS OF 
VETERINARY MEDICINE. 
(a) IN GENERAL.—Section 1415 of the National Agricultural Re-
search, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3151) is 
amended— 
Inter- 
(1) in subsection (a), by striking the first sentence and insert-
governmental 
jng the following: "The Secretary shall conduct a program of 
competitive grants to Stetes for the purpose of meeting the costs 
of renovation, improving compliance with Federal regulations, 
emplo}dng faculty, acquiring equipment, and tekmg other 
action related to the improvement of schools of veterinary 
medicine to ensure agricultural competitiveness on a worldwide 
basis."; 
(2) in subsection O^Xl), by striking ", or has made a reasonable 
effort to establish," and by striking the final "and"; and 
(3) by amending subsection (bX2) to read as follows and adding 
a new subsection (bX3) as follows: 
"(2) the clinicsil training of the school to be improved shall 
emphasize care and preventive medical programs for food ani-
mals and companion animals (including horses) which support 
industries of major economic importance; and 
"(3) the Secretary may set aside a portion of funds appro-
priated for the award of grants under this section and make 
such amounts available only for grants to eligible colleges and 
universities that the Secretary determines have 
unique 
capabilities for achieving the objective of full participation of 
minority groups in research in the Nation's schools of veteri-
nary medicine.". 
(b) 
CONFORMING 
AMENDMENTS.—Such 
section 
is 
further 
amended— 
(1) by striking the section heading and "SEC. 1415. (a)" and 
inserting the following: 
"SEC. 1415. GRANTS TO ENHANCE RESEARCH CAPACITY IN SCHOOLS OF 
VETERINARY MEDICINE. 
"(a) COMPETITIVE GRANT PROGRAM.—"; 
(2) by inserting "PREFERENCE.—" after "(b)"; and 
(3) by inserting 
"APPORTIONMENT AND DISTRIBUTION OF 
FUNDS.—" after "(c)". 
0)) CLERICAL AMENDMENT.—The item in the table of contents of 
the Food and Agriculture Act of 1977 (Public Law 95-113; 91 Stat. 
913) relating to section 1415 is amended to read as follows: 
"Sec. 1415. Greuits to enhance research capacity in schools of veterinary medicine.". 
SEC. 1608. GRANTS AND FELLOWSHIPS FOR FOOD AND AGRICULTURAL 
SCIENCES EDUCATION. 
Section 1417 of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3152) is amended to read 
as follows: 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3717 
"SEC. 1417. GRANTS AND FELLOWSHIPS FOR FOOD AND AGRICULTURAL 
SCIENCES EDUCATION. 
"(a) HIGHER EDUCATION TEACHING PROGRAMS.—The Secretary Forests and 
shall promote and strengthen higher education in the food and forest products, 
agricultural sciences by formulating and administering programs to ^"™^^ welfare. 
enhance college and university teaching programs in agriculture, 
natural resources, forestry, veterinary medicine, home economics, 
and disciplines closely allied to the food and agricultural system. 
"(b) GRANTS.—The Secretary may make competitive grants (or 
grants without regard to any requirement for competition) to land-
grant colleges and universities, to colleges and universities having 
significant minority enrollments and a demonstrable capacity to 
carry out the teaching of food and agricultural sciences, and to other 
colleges and universities having a demonstrable capacity to carry 
out the teaching of food and agricultural sciences, for a period not to 
exceed 5 years— 
"(1) to strengthen institutional capacities, including curricu-
lum, faculty, scientific instrumentation, instruction delivery 
systems, and student recruitment and retention, to respond to 
identified State, regional, national, or international educational 
needs in the food and agricultural sciences; 
"(2) to attract and support undergraduate and graduate stu-
dents in order to educate the students in national need areas of 
the food and agricultural sciences; 
"(3) to facilitate cooperative initiatives between two or more 
eligible institutions, or between eligible institutions and units of 
State government or organizations in the private sector, to 
maximize the development and use of resources such as faculty, 
facilities, and equipment to improve food and agricultural sci-
ences teaching programs; 
"(4) to design and implement innovative food and agricultural 
educational programs; 
"(5) to conduct undergraduate scholarship programs to meet 
national and international needs for training food and agricul-
tural scientists and professionals; and 
"(6) to conduct graduate and postdoctoral fellowship programs 
to attract highly promising individuals to research or teaching 
careers in the food and agricultural sciences. 
"(c) EUGIBILITY FOR G R A N T S . — 
"(1) IN GENERAL.—To be eligible for a grant under subsection 
(b), a recipient institution must have a significant demonstrable 
commitment to higher education teaching programs in the food 
and agricultural sciences and to each specific subject area for 
which the grant is to be used. 
"(2) MINORITY GROUPS.—The Secretary may set aside a por-
tion of the funds appropriated for the awarding of grants under 
subsection (b), and make such amounts available only for grants 
to eligible colleges and universities that the Secretary deter-
mines have unique capabilities for achieving the objective of full 
representation of minority groups in the food and agricultural 
sciences workforce of the United States. 
"(d) EVALUATION OF TEACHING PROGRAMS.—The Secretary shall 
conduct programs to develop, analyze, and provide to colleges and 
universities data and information that are essential to the evalua-
tion of the quality of teaching programs and to facilitate the design 
104 STAT. 3718 
PUBLIC LAW 101-624—NOV. 28, 1990 
of more effective programs comprising the food and agricultural 
sciences higher education system of the United States. 
"(e) CONTINUING EDUCATION.—The Secretary shall conduct special 
programs with colleges and universities, and with organizations in 
the private sector, to support educational initiatives to enable food 
and Eigricultural scientists and professionals to maintain their 
knowledge of changing technology, the expanding knowledge base, 
societal issues, and other factors that impact the skills and com-
petencies needed to maintain the expertise base available to the 
agricultural system of the United States. The special programs shall 
include grants and technical assistance. 
"(f) TRANSFERS OF FUNDS AND FUNCTIONS.—Funds authorized in 
section 22 of the Act of June 29, 1935 (49 Stat. 439, chapter 338; 7 
U.S.C. 329) are transferred to and shall be administered by the 
Secretary of Agriculture. There are transferred to the Secretary all 
the functions and duties of the Secretary of Education under such 
Act applicable to the activities and programs for which funds are 
made available under section 22 of such Act. 
"(g) 
NATIONAL FOOD AND AGRICULTURAL SCIENCES TEACHING 
AWARDS—. 
"(1) ESTABUSHMENT.—The Secretary shall establish a Na-
tional Food and Agricultural Sciences Teaching Awards pro-
gram to recognize and promote excellence in teaching food and 
agricultural sciences at a college or university. The Secretary 
shall make at least one cash award in each fiscal year to a 
nominee selected by the Secretary for excellence in teaching a 
food and agricultural science at a college or university. 
"(2) FUNDING.—The Secretary may transfer funds from 
amounts appropriated for the conduct of any agricultural re-
search, extension, or teaching program to an account estab-
lished pursuant to this section for the purpose of making the 
awards. The Secretary may accept gifts in accordance with 
Public Law 95-442 (7 U.S.C. 2269) for the purpose of making the 
awards. 
"(h) ADMINISTRATION.—The Federal Advisory C!ommittee Act (5 
U.S.C. App. 2) and title XVIII of the Food and Agriculture Act of 
1977 (7 U.S.C. 2281 et seq.) shall not apply to a panel or board 
created for the purpose of reviewing applications and proposals for 
grants or nominations for awards submitted under this section, 
"(i) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 
be appropriated for carrying out this section $60,000,000 for each of 
the fiscal years 1990 through 1995. Of amounts appropriated to 
carry out this section for a fisced year, not less than $10,000,000 shall 
be used for the national needs graduate fellowship program referred 
to in subsection (bX6).". 
SEG. 1609. GRANTS FOR RESEARCH ON THE PRODUCTION AND MARKET-
ING OP ALCOHOLS AND INDUSTRIAL HYDROCARBONS FROM 
AGRICULTURAL COMMODITIES AND FOREST PRODUCTS. 
(a) GRANTS.—Section 1419 of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3154) is 
amended to read as follows: 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3719 
"SEC. 1419. GRANTS FOR RESEARCH ON THE PRODUCTION AND MARKET-
ING OF ALCOHOLS AND INDUSTRIAL HYDROCARBONS FROM 
AGRICULTURAL COMMODITIES AND FOREST PRODUCTS. 
"(a) AUTHORITY OF SECRETARY.—The Secretary may award grants 
under this section to colleges, universities, and Federal laboratories 
for the purpose of conducting research related to— 
"(1) alcohol fuels, including ethanol and methanol or their 
ethers; 
"(2) industrial oilseed crops for diesel fuel and petrochemical 
substitutes; 
"(3) other forms of biomass fuels, including gaseous and solid 
fuels; 
"(4) other industrial hydrocarbons made from agricultural 
commodities and forest products; and 
"(5) the development of the most economical and commer-
cially feasible means of producing, collecting, and transporting 
agricultural crops, wastes, residues, and byproducts for use as 
feedstocks for the production of alcohol and other forms of 
biomass energy and the development of new markets for by-
products. 
"(b) SET ASIDE OF FUNDS FOR CERTAIN GRANT PROJECTS.—Of the 
amounts appropriated in any fiscal year pursuant to the authoriza-
tion contained in subsection (c), not less than 50 percent of those 
amounts shall be made available for grants for research relating to 
the development of technologies for increasing the energy efficiency 
and commercial feasibility of alcohol production, including— 
"(1) processes of cellulose 
conversion and membrane 
technology, 
"(2) research to improve the quality and value of byproducts 
to increase digestibility and performance of livestock, poultry, 
and fish, and 
"(^ development of new markets for byproducts. 
"(c) MINORITY GROUPS.—The Secretary may set aside a portion of 
funds appropriated for the award of grants under this section and 
make such amounts available only for grants to eligible colleges and 
universities that the Secretary determines have unique capabilities 
for achieving the objective of full participation of minority groups in 
research on the production and marketing of alcohols and industrial 
hydrocarbons from agricultural commodities and forest products. 
"(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 
be appropriated for the purposes of canying out this section 
$20,000,000 for each of the fiscal years 1991 through 1995.". 
(b) CLERICAL AMENDMENT.—The item relating to section 1419 in 
the table of contents of the Food and Agriculture Act of 1977 (Public 
Law 95-113; 91 Stat. 913) is amended by striking ", and agricultural 
chemicals and other products from coal derivatives". 
SEC. 1610. FOOD SCIENCE AND NUTRITION RESEARCH CENTER. 
(a) GRANT AUTHORIZED.—Subtitle D of the National Agricultural 
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3171 
et seq.) is amended by inserting after section 1423 the following new 
section: 
"SEC. 1424. FOOD SCIENCE AND NUTRITION RESEARCH CENTER. 
7 USC 3174. 
"(a) ESTABLISHMENT OF CENTER.—The Secretary may award a 
grant to a research facility described in subsection (b) to establish 
104 STAT. 3720 
PUBLIC LAW 101-624—NOV. 28, 1990 
not less than one food science and nutrition research center for the 
Southeast Region of the United States. 
"(b) RESEARCH FACILITY DESCRIBED.—The research facility referred 
to in subsection (a) is a research facility that is part of a land-grant 
college or university system and, on October 1,1990, benefits from a 
dedicated non-Federal nutrition endowment of not less than 
$100,000,000. 
"(c) ADMINISTRATION OF FUNDS.—The Cooperative State Research 
Service, in consultation with the Agricultural Research Service, 
shall administer funds appropriated to carry out this section— 
"(1) to assure a coordinated approach to human nutrition 
research; and 
"(2) to avoid duplication of research conducted at any re-
search center established under subsection (a) with research 
conducted at Federal human nutrition research centers. 
"(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 
be appropriated for each of the fiscal years 1991 through 1995 such 
sums as may be necessary to carry out this section.". 
(b) CLERICAL AMENDMENT.—The table of contents of the Food and 
Agriculture Act of 1977 (Public Law 95-113; 91 Stat. 913) is amended 
by inserting after the item relating to section 1423 the following new 
item: 
"Sec. 1424. Food science and nutrition research center.". 
SEC. 1611. ANIMAL HEALTH AND DISEASE RESEARCH STUDY AND 
ANIMAL HEALTH SCIENCE RESEARCH ADVISORY BOARD. 
(a) STUDY OF ANIMAL CARE DELIVERY SYSTEM.—Section 1431 of the 
National Agricultural Research, Extension, and Teaching Policy Act 
of 1977 (7 U.S.C. 3193) is amended— 
(1) by striking the section heading and "SEC. 1431." and 
inserting the following: 
"SEC. 1431. AUTHORIZATION TO THE SECRETARY OF AGRICULTURE. 
"(a) AUTHORITY TO COOPERATE WITH, ENCOURAGE, AND ASSIST 
STATES.—"; and 
(2) by adding at the end the following new subsection: 
"(b) STUDY OF ANIMAL CARE DEUVERY SYSTEM.—(1) The Secretary 
shall commission the National Academy of Sciences, working 
through the Board on Agriculture of the National Research Council, 
to conduct a study of the delivery system utilized to provide farmers, 
including small and limited resource farmers, and ranchers with 
animal care and veterinary medicEil services, including animal 
drugs. 
"(2) The study required by this subsection shall assess opportuni-
ties to— 
"(A) improve the flow of information to producers regarding 
animal husbandry' practices, and diagnostic and treatment 
methods, including the costs and conditions necessary for the 
effective use of such practices and methods; 
"(B) foster achievement of food safety goals; and 
"(C) advance the well-being and treatment of farm animals, 
with particular emphasis on disease prevention strategies. 
"(3) The study required by this subsection shall include rec-
ommendations for changes in research and extension policies or 
priorities, food safety programs and policies, and policies and proce-
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3721 
dures governing the approval, use, and monitoring of animal 
drugs.". 
(b) CHANGES IN ANIMAL HEALTH SCIENCE RESEARCH ADVISORY 
BOARD.—Section 1432 of that Act (7 U.S.C. 3194) is amended— 
(1) by striking the section heading and "Sec. 1432(a)." and 
inserting the following: 
"SEC 1432. ANIMAL HEALTH SCIENCE RESEARCH ADVISORY BOARD. 
"(a) ESTABUSHMENT AND MEMBERSHIP—"; 
(2) in subsection (a)— 
(A) by striking "1990" in the matter preceding the para-
graphs and inserting "1995"; 
(B) by striking "eleven" in the matter preceding the 
paragraphs and inserting "12"; 
(C) by striking "Bureau o f in parsigraph (4) and inserting 
"Center for"; and 
(D) in paragraph (5)— 
(i) by striking "seven" and inserting "eight"; 
(ii) by striking "and" at the end of subparagraph (B); 
(iii) by redesignating subparagraph (C) as subpara-
graph (D); and 
(iv) by inserting after subparagraph (B) the following 
new subparagraph: 
"(C) one person representing an organization concerned 
with the general protection and well-being of animals, 
and"; and 
(3) by striking subsection (b) and inserting the following new 
subsection: 
"(b) DUTIES.—The Board shall meet at the call of the Secretary, 
but at least once annually, to consult with £md advise the Secretary 
with respect to the implementation of any animal health and dis-
ease research program provided for under this title, under such 
rules and procedures for conducting business as the Secretary may 
prescribe. . 
SEC. 1612. GRANT PROGRAMS FOR 1890 LAND-GRANT COLLEGES, INCLUD-
ING TUSKEGEE UNIVERSITY. 
(a) RESIDENT INSTRUCTION.—The National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3101 et seq.) is 
amended by inserting after section 1445 (7 U.S.C. 3222) the following 
new section: 
"SEC. 1446. RESIDENT INSTRUCTION AT 1890 LAND-GRANT COLLEGES, 7 USC 3222a. 
INCLUDING TUSKEGEE UNIVERSITY. 
"(a) PURPOSE.—It is the purpose of this section to promote and 
strengthen higher education in the food and agricultural sciences at 
colleges eligible to receive funds under the Act of August 30, 1890 (7 
U.S.C. 321 et seq.), including Tuskegee University (hereinafter in 
this section referred to as 'eligible institutions') by formulating and 
administering programs to enhance teaching progrsmis in agri-
culture, natural resources, forestry, veterinary medicine, home eco-
nomics, and disciplines closely allied to the food and agriculture 
production and delivery system. 
"(b) GRANTS.—The Secretary shall make competitive grants, or 
grants without regard to any requirement for competition, to those 
eligible institutions having a demonstrable capacity to carry out the 
teaching of food and £igricultural sciences. 
104 STAT. 3722 
PUBLIC LAW 101-624—NOV. 28, 1990 
Scholarships 
and 
fellowships. 
Education. 
"(c) UsE OF GRANT FUNDS.—Grants made under subsection db) 
shall be used to— 
"(1) strengthen institutional educational capacities, including 
libraries, 
curriculum, 
faculty, 
scientific 
instrumentation, 
instruction delivery systems, and student recruitment and 
retention, in order to respond to identified State, regional, 
national, or international educational needs in the food and 
agricultural sciences; 
"(2) attract and support undergraduate and graduate students 
in order to educate them in identified areas of national need in 
the food and agricultural sciences; 
"(3) facilitate cooperative initiatives between two or more 
eligible institutions or between eligible institutions and units of 
State government, or organizations in the private sector, to 
maximize the development and use of resources such as faculty, 
facilities, and equipment to improve food and agricultural sci-
ences teaching programs; and 
"(4) conduct undergraduate scholarship programs to assist in 
meeting national needs for training food and agricultural 
scientists. 
"(d) GRANT REQUIREMENTS.—(1) The Secretary shall ensure that 
each eligible institution, prior to receiving grant funds under subsec-
tion (b), shall have a significant demonstrable commitment to higher 
education programs in the food and agricultural sciences and to 
each specific subject area for which grant funds under this subsec-
tion are to be used. 
"(2) The Secretary may require that any grant awarded under this 
section contain provisions that require funds to be targeted to meet 
the needs identified in section 1402. 
"(e) MINORITY SET-ASIDE.—The Secretary may set aside a portion 
of the funds appropriated for grants under this section and make 
such amounts available only for grants to eligible institutions that 
the Secretary determines have unique capabilities for achieving the 
objective or full representation of minority groups that are under-
represented in the Nation's food and agricultural sciences work 
force. 
"(f) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 
be appropriated $11,000,000 for each of the fiscal years 1991 through 
1995 to carry out this section.", 
(b) AGRICULTURAL AND FOOD SCIENCES FACILITIES.—Such Act is 
further amended by inserting after section 1446 (as added by subsec-
tion (a)) the following new section: 
7 use 3222b. 
"SEC. 1447. GRANTS TO UPGRADE AGRICULTURAL AND FOOD SCIENCES 
FACILITIES AT 1890 LAND-GRANT COLLEGES, INCLUDING 
TUSKEGEE UNIVERSITY. 
"(a) PURPOSE.—It is hereby declared to be the intent of Congress to 
assist the institutions eligible to receive funds under the Act of 
August 30, 1890, including Tuskegee University (hereafter referred 
to in this section as 'eligible institutions') in the acquisition and 
improvement of agricultural and food sciences facilities and equip-
ment, including libraries, so that the eligible institutions may 
participate fully in the production of human capital. 
"(b) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 
be appropriated to the Secretary of Agriculture for the purposes of 
carrjdng out the provisions of this section $8,000,000 for each of the 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3723 
fiscal years 1991 through 1995, and such sums shall remain avail-
able until expended. 
"(c) USE OF GRANT FUNDS.—Four percent of the sums appro-
priated pursuant to this section shall be available to the Secretary 
for administration of this grants program. The remaining funds 
shall be available for grants to eligible institutions for the purpose 
of assisting them in the purchase of equipment and land, the 
planning, construction, alteration, or renovation of buildings to 
strengthen their capacity in the production of human capital in the 
food and agricultural sciences and can be used at the discretion of 
the eligible institutions in the areas of research, extension, and 
resident instruction or any combination thereof. 
"(d) METHOD OF AWARDING GRANTS.—Grants awarded pursuant to 
this section shall be made in such amounts and under such terms 
and conditions as the Secretary shall determine necessary for carry-
ing out the purposes of this section. 
"(e) PROHIBITION OF CERTAIN USES.—Federal funds provided under 
this section may not be utilized for the pajrment of any overhead 
costs of the eligible institutions. 
"(f) REGULATIONS.—The Secretary may promulgate such rules and 
regulations as the Secretary may consider necessary to carry out the 
provisions of this section.". 
(c) NATIONAL RESEARCH AND TRAINING CENTENNIAL CENTERS.— 
Such Act is further amended by inserting after section 1447 (as 
added by subsection (b)) the following new section: 
"SEC. 1448. NATIONAL RESEARCH AND TRAINING CENTENNIAL CENTERS. 
7 USC 3222c. 
"(a) CoMPETmvE GRANTS AUTHORIZED.—The Secretary of Agri-
culture may make a competitive grant to five national research and 
training centennial centers located at colleges (or a consortia of such 
colleges) eligible to receive funds under the Act of August 30,1890 (7 
U.S.C. 321 et seq.), including Tuskegee University, that— 
"(1) have been designated by the Secretary for the fiscal years 
1991 through 1995 as national research and training centennial 
centers; and 
"(2) have the best demonstrable capacity, as determined by 
the Secretary, to provide administrative leadership as— 
"(A) a National (Denter for Goat Research and Training; 
"(B) a National Center for Agricultural Engineering 
Development, Research, and Training; 
"(C) a National Center for Water Quality and Agricul-
tursd Production Research and Training; 
"(D) a National Center for Sustainable Agriculture Re-
search and Training; and 
"(E) a National Center for Domestic and International 
Trade and Development Research and Training. 
"0)) USE OF GRANTS.—A grant made under subsection (a) may be 
expended by a center to— 
"(1) pay expenses incurred in conducting research for which 
the center was designated; 
"(2) print and disseminate the results of such research; 
"(3) plan, administer, and direct such research; and 
"(4) alter or repair buildings necessary to conduct such 
research. 
"(c) PRIORITY.—In making a grant determination under subsection 
(a), the Secretary shall give priority to those centers that— 
104 STAT. 3724 
PUBLIC LAW 101-624-NOV. 28, 1990 
"(1) will assure dissemination of information between eligible 
institutions described in subsection (a) £ind among agricultural 
producers; and 
"(2) will attract students and needed professionals in the food 
and agricultural sciences. 
"(d) PAYMENTS.—(1) Under the terms of a grant made under 
subsection (a), funds appropriated under subsection (f) for a fiscal 
year shall be paid (upon vouchers approved by the Secretary) to a 
center receiving the grant in equ£il quarterly installments beginning 
on or about the first day of October of such year. 
"(2) Not later than 60 days after the end of each fiscal year for 
which funds are paid under this section to a center, the research 
director of such center shall submit to the Secretary a detailed 
statement of the disbursements in such fiscal year of funds received 
by such center under this section. 
"(3) If any of the funds received by a center under this section are 
misapplied, lost, or diminished by any action or contingency on the 
part of the center— 
"(A) the center shall replace such funds; and 
"(B) the Secretary shall not distribute to such center any 
other funds under this subsection until such funds are replaced. 
"(e) PROHIBITED USES OP FUNDS.—Funds provided under this sec-
tion may not be used— 
"(1) to acquire or construct a building; or 
"(2) to pay the overhead costs of the college (or consortia of 
colleges) receiving the grant. 
"(f) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 
be appropriated $2,000,000 for each of the fiscal years 1991 through 
1995 for grants under this section. 
"(g) CENTER DEFINED.—For purposes of this section, the term 
'center' means a national research and training centennial center 
that receives a grant under this subsection. 
"(h) COORDINATION OF CENTER ACTIVITIES.—(1) The center des-
ignated under subsection (aX2XC) shall coordinate its activities with 
the water quality research activities conducted under subtitle G of 
title XIV of the Food, Agriculture, Conservation, and Trade-Act of 
1990. 
"(2) The center designated under subsection (aX2XD) shall coordi-
nate its activities with the sustainable agriculture research and 
education program established under subtitle B of title XVI of the 
Food, Agriculture, Conservation, and Trade Act of 1990.". 
(d) CLERICAL AMENDMENT.—The table of contents of the Food and 
Agriculture Act of 1977 (Public Law 95-113; 91 Stat. 913) is amended 
by inserting after the item relating to section 1445 the following new 
items: 
"Sec. 1446. Resident instruction at 1890 land-grant colleges, including Tuskegee Uni-
versity. 
"Sec. 1447. Grants to upgrade agricultural and food sciences facilities at 1890 land-
grant colleges, including Tuskegee University. 
"Sec. 1448. National research and training centennial centers.". 
SEC. 1613. INTERNATIONAL AGRICULTURAL SCIENCE, EDUCATION, AND 
DEVELOPMENT AND INTERNATIONAL TRADE DEVELOPMENT 
\ 
CENTERS. 
\ 
(a) SCIENCE, EDUCATION, AND DEVELOPMENT.—Subsection (a) 
of 
section 1458 of the National Agricultural Research, Extension, and 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3725 
Teaching Policy Act of 1977 (7 U.S.C. 3291(a)) is amended to read as 
follows: 
"(a) AUTHORITY OF THE SECRETARY.—To carry out the policy of this 
subtitle, the Secretary (in consultation with the Agency for Inter-
national Development and subject to such coordination with other 
Federgd officials, Departments, and agencies as the President may 
direct) may— 
"(1) expand the operational coordination of the Department of 
Agriculture with institutions and other persons throughout the 
world performing agricultural and related research and exten-
sion activities by— 
"(A) exchanging research materials and results with the 
institutions or persons; and 
"(B) conducting with the institutions or persons joint or 
coordinated research and extension on problems of signifi-
cance to food and agriculture in the United States; 
"(2) enter into cooperative arrangements with Departments 
and Ministries of Agriculture in other nations to conduct re-
search, extension, and education activities in support of the 
development of a viable and sustainable global agricultural 
system, including efforts to establish a global system for plant 
genetic resources conservation; 
"(3) enter into agreements with land-grant colleges and 
universities, the Agency for International Development, and 
international organizations (such as the United Nations, World 
Bank, regional development banks, the International Agricul-
tural Research Center), or other organizations, institutions or 
individuals with comparable goals, to promote and support the 
development of a viable and sustainable global agricultural 
system. 
"(4) further develop within the Department highly qualified 
and experienced scientists and experts who specialize in inter-
national programs, to be available to carry out the activities 
described in this section; 
"(5) work with transitional and more advanced countries in 
food, agricultural, and related research, development, and 
extension (including providing technical assistance, training, 
and advice to persons from the countries engaged in the activi-
ties and the stationing of scientists and other specialists at 
national and international institutions in the countries); 
"(6) expand collaboration and coordination with the Agency 
for International Development regarding food and agricultural 
research, extension, and education programs in developing 
countries; 
"(7) assist colleges and universities in strengthening their 
capabilities for food, agricultural, and related research and 
extension that is relevant to agricultural development activities 
in other countries through— 
"(A) the provision of support to State universities and 
land-grant colleges and universities to do collaborative re-
search with other countries on issues relevant to United 
States agricultural competitiveness; 
"(B) the provision of support for cooperative extension 
; 
education in global agriculture and to promote the applica-
tion of new technology developed in foreign countries to 
United States agriculture; and 
104 STAT. 3726 
PUBLIC LAW 101-624—NOV. 28, 1990 
"(C) the provision of support for the internationalization 
of resident instruction programs of the universities and 
colleges described in subparagraph (A); and 
"(8) establish, in cooperation with the Secretary of State, a 
program, to be coordinated through the International Arid 
Land Consortium, to enhance collaboration and cooperation 
between institutions possessing research capabilities applied to 
the development, management, and reclamation of arid lands.". 
(b) SPECIAUZED OR TECHNICAL SERVICES.—Subsection (c) of section 
1458 of that Act (7 U.S.C. 3291) is amended by inserting after 
"universities" 
the following: 
"and other 
nongovernmental 
organizations". 
(c) INTERNATIONAL TRADE DEVELOPMENT CENTERS.—Section 1458A 
of that Act (7 U.S.C. 3292) is amended— 
(1) in subsection (a)— 
(A) by inserting "GRANT PROGRAM.—" after "(a)"; 
(B) by striking "grants to States" in the first sentence and 
inserting "grants to States (or regional groupings of 
States)"; 
(C) by striking "State funding" in the second sentence 
and inserting "State or regional ftinding"; and 
(D) by striking "State from" in the second sentence and 
inserting "State or region from"; 
(2) by redesignating subsections (b), (c), and (d) as subsections 
(c), (d), and (e), respectively; 
(3) by inserting after subsection (a) the following new 
subsection: 
"(b) LOCATION AND FUNDING OF CERTAIN CENTERS.—The Secretary 
shall make determinations regarding the location and funding of 
international trade development centers established after the date 
of the enactment of this subsection based on a national plan for 
agricultural export promotion through international trade develop-
ment centers. Grants under this section shall be made available on a 
competitive basis in accordance with such plan."; and 
(4) in subsection (c) (as redesignated by paragraph (2))— 
(A) by inserting "PREFERENCES.—" after "(c)"; 
(B) by inserting after "shall" in the matter preceding the 
paragraphs the following: ", consistent with the plan devel-
oped under subsection (b),"; and 
(C) by striking "States" and inserting "States (or regional 
groupings of States)". 
(d) STYUSTIC AMENDMENTS.—(1) Section 1458 of that Act (7 U.S.C. 
3291) (as amended by subsections (a) and (b)) is further amended— 
(A) by striking "Sec. 1458." and inserting the following: 
"SEC. 1458. INTERNATIONAL AGRICULTURAL RESEARCH AND EXTEN-
SION."; 
(B) by inserting "ENHANCING LINKAGES.—" after "(b)"; 
(C) by inserting "PROVISION OF SPECIALIZED OR TECHNICAL 
SERVICERS 
' s.f'ksi* *
*
(
^
c
V
' 
(2) Section 1458A of that Act (7 U.S.C. 3292) (as amended by 
subsection (b)) is further amended— 
(A) by striking the section heading and "Sec. 1458A." and 
inserting the following: 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3727 
"SEC. 1458A. GRANTS TO STATES FOR INTERNATIONAL TRADE DEVELOP-
MENT CENTERS."; 
(B) by inserting "ACTIVITIES OF CENTERS.—" after "(d)"; and 
(C) by inserting "AUTHORIZATION OF APPROPRIATIONS.—" after 
"(e)". 
SEC. 1614. AQUACULTURE ASSISTANCE PROGRAMS. 
(a) FOOD SAFETY; CLOSED-SYSTEM PRODUCTION; AND REPORTS.— 
Section 1475 of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3322) is amended— 
(1) in subsection (a)— 
(A) by inserting "RESEARCH AND EXTENSION PROGRAM.—" 
after "(a)"; and 
(B) by striking "United States," and inserting "United 
States and to enhance further the safety of food products 
derived from the aquaculture industry,"; 
(2) in subsection (b)— 
(A) by inserting "GRANTS.—" after "(b)"; 
(B) by inserting "and sea grant" after "land-grant"; and 
(C) by striking the period at the end of the first sentence 
and inserting "and to enhance further the safety and 
wholesomeness of those species and products, including the 
development of reliable supplies of seed stock and thera-
peutic compounds."; 
(3) in subsection (c), by inserting "AQUACULTURE DEVELOP-
MENT PLANS.—" after "(c) ; 
(4) in subsection (d)— 
(A) by inserting "AQUACULTURAL CENTERS.—" after "(d)"; 
(B) by striking "four aquacultural research, development, 
^id demonstration centers" in the first sentence and insert-
ing "five aquacultural research, development, and dem-
onstration centers"; and 
(C) by adding at the end the following new sentence: "To Research, 
the extent practicable, the Secretary shall ensure that equi-
table efforts are made at these centers in addressing the 
research needs of those segments of the domestic aqua-
culture industry located within that region."; 
(5) in subsection (e)— 
(A) by striking "Not later" and all that follows through 
"subsequent year," and inserting "Reports.—(1) Not later 
than March 1 of each year,"; and 
(B) by adding at the end the following new paragraph: 
"(2) The Secretary shall, in consultation with the interagency Animals. 
aquaculture coordinating group established under section 6(a) of the 
National Aquaculture Act of 1980 (16 U.S.C. 2805(a)), conduct a 
study to assess the economic impact of animal damage to the United 
States aquaculture industry. In conducting such study, the Sec-
retary shall provide for the consideration of all t)rpes of animal 
damage, including predation, that have an impact on aquaculture 
enterprises, including fish farming. The Secretary shall submit a Reports. 
report detailing the results of such study to the Committee on 
Agriculture and the Committee on Merchant Marine and Fisheries 
of the House of Representatives and the Committee on Agriculture, 
Nutrition, and Forestry of the Senate not later than January 1, 
1992."; and 
(6) by adding at the end the following new subsections: 
104 STAT. 3728 
PUBLIC LAW 101-624—NOV. 28, 1990 
"(f) LISTING OF LAWS ON AQUACULTURE.—The interagency aqua-
culture coordinating group established under section 6(a) of the 
National Aquaculture Act of 1980 (16 U.S.C. 2805(a)) shall, in con-
sultation with appropriate Federal and State agencies, compile a 
listing of Federal and State laws, rules, and regulations materigilly 
affecting the production, processing, marketing, and transportation 
of aquaculturally produced commodities and the products thereof. 
Public 
The interagency aquaculture coordinating group shall make such 
information. 
listing available to the public not later than January 1, 1992, and 
shall update and revise such listing not later than January 1, 1996, 
to show such laws, rules, and regulations as in effect on that date. 
"(g) FISH DISEASE PROGRAM.—The Secretary shall implement, in 
consultation with the Joint Subcommittee on Aquaculture referred 
to in section 6 of the National Aquaculture Act of 1980 (16 U.S.C. 
2805), a fish disesise program to include the development of new 
diagnostic procedures for fish diseases, the determination of the 
effect of water environment on the development of the fish immune 
system, and the development of therapeutic, synthetic, or natural 
systems, for the control of fish diseases.". 
(b) AQUACULTURE RESEARCH FACILITY.—(1) Subtitle L of that Act (7 
U.S.C. 3321 et seq.) is amended by inserting after section 1475 the 
following new section: 
7 use 3323. 
"SEC. 1476. AQUACULTURE RESEARCH FACILITIES. 
"(a) GRANT AUTHORIZED.—In order to gain further knowledge of 
intensive water recirculating aquaculture systems, the Secretary 
may make grants for the purpose of further developing and expand-
ing aquaculture research facilities at Illinois State University in 
Normal, Illinois, and Virginia Polj^echnic Institute and State 
University in Blacksburg, Virginia, and to conduct such programs as 
are necessary to do basic and applied research for intensive water 
recirculating aquaculture systems. 
"0)) AUTHORIZATION OF APPROPRIATIONS.—There are authorized, in 
the event the Secretary decides to take action under subsection (a), 
to be appropriated $500,000 for each of the two facilities for fiscal 
years 1991 through 1995 to carry out this section.". 
(2) The table of contents of the Food and Agriculture Act of 1977 
(Public Law 95-113; 91 Stat. 913) is amended by inserting after the 
item relating to section 1475 the following new item: 
"Sec. 1476. Aquaculture research facilities.". 
(c) PROGRAM EXTENSION AND CONSTRUCTION PROHIBITION.—Sec-
tion 1477 of that Act (7 U.S.C. 3324) is amended— 
(1) by striking "each fiscal year" and all that follows through 
"1990. and inserting "each of the fiscal years 1991 through 
1995."; and 
(2) by adding at the end the following new sentence: "Funds 
appropriated under this section or section 1476 may not be used 
to acquire or construct a building.". 
(d) APPROPRIATIONS FOR AQUACULTURE.—To authorize appropria-
tions to carry out the National Aquaculture Act of 1980 for fiscal 
years 1991,1992, and 1993, paragraphs (1), (2), and (3) of section 10 of 
the National Aquaculture Act of 1980 (16 U.S.C. 2809) are amended 
to read as follows: 
"(1) to the Department of Agriculture, $1,000,000 for each of 
the fiscal years 1991,1992, and 1993; 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3729 
"(2) to the Department of Commerce, $1,000,000 for each of 
the fiscal years 1991,1992, and 1993; and 
"(3) to the Department of Interior, $1,000,000 for each of the 
fiscal years 1991,1992, and 1993.". 
SEC. 1615. NATIONAL COMPETITIVE RESEARCH INITIATIVE. 
(a) INITIATIVE ESTABLISHED.—Subsection Qa) of section 2 of Public 
Law 89-106 (7 U.S.C. 450i) is amended— 
(1) by inserting "CoMPErmvE GRANTS.—(1)" after "(b)"; and 
(2) by striking the third sentence and all that follows and 
inserting the following new paragraphs: 
"(2) HIGH PRIORITY RESEARCH.—For purposes of this subsection, 
the term 'high priority research' means basic and applied research 
that focuses on both national and regional research needs (and 
methods to transfer such research to onfarm or inmarket practice) 
in— 
"(A) plant systems, including plant genome structure and 
function; molecular and cellular genetics and plant bio-
technology; plant-pest interactions and biocontrol systems; crop 
plant response to environmental stresses; unproved nutrient 
qualities of plant products; and new food and industrial uses of 
plant products; 
"(B) animal systems, including aquaculture, cellular and 
molecular basis of animal reproduction, growth, disease, and 
health; identification of genes responsible for improved produc-
tion traits and resistance to disease; improved nutritional 
performance of animals; and improved nutrient qualities of 
animal products, and uses, and the development of new and 
improved animal husbandry and production systems that take 
into account production efficiency and animal well-being, and 
animal systems applicable to aquaculture; 
"(C) nutrition, food quality, and health, including microbial 
contaminants and pesticides residues related to human health; 
links between diet and health; bioavailability of nutrients; 
postharvest physiology and practices; and improved processing 
technologies; 
"(D) natural resources and the environment, including fun-
damental structures and functions of ecosystems; biological and 
physical bases of sustainable production systems; minimizing 
soil and water losses and sustaining surface water and ground 
water quality; global climate effects on agriculture; forestry; 
and biological diversity; 
"(E) engineering, products, and processes, including new uses 
and new products from traditional and non-traditional crops, 
animals, b5T)roducts, and natural resources; robotics, energy 
efficiency, computing, and expert systems; new hazard and risk 
assessment and mitigation measures; and water quality and 
management; and 
"(F) markets, trade, and policy, including optional strategies 
for entering and being competitive in overseeus markets; new 
decision tools for onfarm and inmarket systems; choices and 
applications of technology; technology assessment; and new ap-
proaches to rural economic development. 
"(3) TYPES OF GRANTS.—In addition to making research grants 
under paragraph (1), the Secretary may conduct a program to 
improve research capabilities in the agricultural, food, and environ-
104 STAT. 3730 
PUBLIC LAW 101-624—NOV. 28, 1990 
Scholarships 
and fellowships. 
Students. 
Scientists. 
mental sciences and award the following categories of competitive 
grants: 
"(A) Grants may be awarded to a single investigator or 
coinvestigators within the same discipline. 
"(B) Grants may be awarded to teams of researchers from 
different areas of agricultural research and scientific dis-
ciplines. 
"(C) Grants may be awarded to multidisciplinary teams that 
are proposing research on long-term applied research problems, 
with technology transfer a major component of all such grant 
proposals. 
"(D) Grants may be awarded to an institution to allow for the 
improvement of the research, development, technology transfer, 
and education capacity of the institution through the acquisi-
tion of special research equipment and the improvement of 
agricultural education and teaching. The Secretary shall use 
not less than 25 percent, and not more than 40 percent, of the 
funds made available for grants under this subparagraph to 
provide fellowships to outstanding pre- and post-doctoral stu-
dents for research in the agricultural sciences. 
"(E) Grants may be awarded to single investigators or 
coinvestigators who are beginning their research careers and do 
not have an extensive research publication record. To be eligible 
for a grant under this subparagraph, an individual shall have 
less than 5 years of post-graduate research experience. 
"(F) Grants may be awarded to ensure that the faculty of 
small and mid-sized institutions who have not previously been 
successful in obtaining competitive grants under this subsection 
receive a portion of the grants. 
"(4) TERM.—The term of a competitive grant made under this 
subsection may not exceed 5 years. 
"(5) DIRECTOR.—The Secretary shall appoint a director for the 
grant program authorized by this subsection. The Secretary, acting 
through the director, shall be responsible for the overall direction of 
the grant program and implementation of general policies respect-
ing the management and operation of programs and activities in the 
program. 
"(6) PARTICIPATION IN GRANT PROCESS.—In seeking proposals for 
grants under this subsection and in performing peer review evalua-
tions of such proposals, the Secretary shall seek the widest partici-
pation of qualified scientists in the Federal Government, colleges 
and universities, State agricultural experiment stations, and the 
private sector, 
"(7) C!oNSTRUCTioN PROHIBITED.—A grant made under paragraph 
(1) may not be used for any purpose for which a grant may be made 
under subsection (d) or for the planning, repair, rehabilitation, 
acquisition, or construction of a building or facility. 
"(8) MATCHING FUNDS.—(A) Except as provided in subparagraph 
(B), the Secretary may not take the offer or availability of matching 
funds into consideration in making a grant under this subsection. 
"(B) In the case of grants under paragraph (3)(D), the amount 
provided under this subsection may not exceed 50 percent of the cost 
the special research equipment or other equipment acquired. 
"(9) ANNUAL REPORT.—The Secretary shall transmit to Congress 
an annual report describing the policies, priorities, and operations of 
the grant program authorized by this subsection during the preced-
ing fiscal year. The report shall— 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3731 
"(A) include a description of the progress being made to 
comply with subsection (j); and 
"(B) be transmitted not later than January 1 of each year. 
"(10) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated to carry out this subsection $150,000,000 for fiscal 
year 1991, $275,000,000 for fiscal year 1992, $350,000,000 for fiscal 
year 1993, and $400,000,000 for fiscal year 1994, and $500,000,000 for 
fiscal year 1995, of which each fiscal year— 
"(A) not less than 10 percent for fiscal year 1991, 20 percent 
for fiscal year 1992, and 30 percent for fiscal year 1993 £ind each 
fiscal year thereafter shall be available to make grants for 
research to be conducted by multidisciplinary teams; 
"(B) not less than 20 percent shall be available to make grants 
for research to be conducted by persons conducting mission-
linked systems research; 
"(C) not less than 10 percent shall be available to make grants 
under subparagraphs (D) and (F) of paragraph (3) for awarding 
grants in research and education strengthening and research 
opportunity; 
"(D) not more than two percent may be used for equipment 
grants under subparagraph (3XD); and 
"(E) not more than four percent may be retained by the 
Secretary to pay administrative costs incurred by the Secretary 
in can:ying out this subsection.". 
(b) ADMINISTRATIVE PROVISIONS.—Such section is further amended 
7 use 450i. 
by adding at the end the following new subsections: 
"(j) EMPHASIS ON SUSTAINABLE AGRICULTURE.—The Secretary of 
Agriculture shall ensure that grants made under subsections (b) and 
(c) are, where appropriate, consistent with the development of sys-
tems of sustainable agriculture. For purposes of this section, the 
term 'sustainable agriculture' has the meaning given that term in 
section 1404(17) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3103(17)). 
"(k) REPORTS.—The Secretary of Agriculture shall prepare and 
submit to Congress on January 1 of each year a report on awards 
made under subsections (b) and (c) during the previous fiscal year. 
"(1) CONSULTATION WITH TECHNOLOGY BOARD.—The Secretary of 
Agriculture may consult with the Agricultural Science and Tech-
nology Review Board regarding the policies, priorities, and oper-
ation of subsections (b) and (c).". 
(c) STYLISTIC AMENDMENTS.—Such section is further amended— 
(1) by striking "SEC. 2. (a)" and inserting the following: 
"SEC. 2. COMPETITIVE, SPECIAL, AND FACILITIES RESEARCH GRANTS. 
"(a) EsTABusHMENT OF GRANT PROGRAM.—"; 
(2) in subsection (d), by inserting "FACILITIES GRANTS.—" after 
"(d)"; 
(3) in subsection (e), by inserting "RECORD KEEPING.—" after 
"(e)"; 
(4) in subsection (f), by inserting "LIMITS ON OVERHEAD 
COSTS.—" after "(f)"; 
(5) in subsection (g), by inserting "AUTHORIZATION OF APPRO-
PRIATIONS.—" after " i ) " ; 
(6) in subsection (h), by inserting "RULES.—" after "(h)"; and 
(7) in subsection (i), by inserting "APPLICATION OF OTHER 
LAWS.—" after "(i)". 
104 STAT. 3732 
PUBLIC LAW 101-624—NOV. 28, 1990 
SEC. 1616. SPECIAL RESEARCH GRANTS. 
Subsection (c) of section 2 of the Act of August 4, 1965 (7 U.S.C. 
4501), is Eimended to read as follows: 
"(c) SPECIAL GRANTS.—(1) The Secretary of Agriculture may make 
grants, for periods not to exceed 5 years— 
"(A) to State agricultural experiment stations, all colleges and 
universities, other research institutions and organizations. Fed-
eral agencies, private organizations or corporations, and individ-
uals for the purpose of conducting research to facilitate or 
expand promising breakthroughs in areas of the food and agri-
cultural sciences of importance to the United States; and 
"(B) to State agricultural experiment stations, land-grant 
colleges and universities, research foundations established by 
land-grant colleges and universities, colleges and universities 
receiving funds under the Act of October 10, 1962 (16 U.S.C. 
582a et seq.), and accredited schools or colleges of veterinary 
medicine for the purpose of facilitating or expanding ongoing 
State-Federal food and agricultural research programs that— 
"(i) promote excellence in research on a regional and 
national level; 
"(ii) promote the development of regional research 
centers; 
"(iii) promote the research partnership between the 
Department of Agriculture, colleges and universities, re-
search foundations, and State agricultural experiment sta-
tions for regional research efforts; and 
"(iv) facilitate coordination and cooperation of research 
among States through regional research grants. 
"(2) LIMITATIONS.—The Secretary may not make a grant under 
this subsection— 
"(A) for any purpose for which a grant may be made under 
subsection (d); or 
"(B) for the planning, repair, rehabilitation, acquisition, or 
construction of a building or facility. 
"(3) MATCHING FUNDS.—Grants made under this subsection shall 
be made without regard to matching funds. 
"(4) SET ASIDES.—Of amounts appropriated for a fiscal year to 
carry out this subsection— 
"(A) ninety percent of such amounts shall be used for grants 
for regional research projects; and 
"(B) four percent of such amounts may be retained by the 
Secretary to pay administrative costs incurred by the Secretary 
to carry out this subsection.". 
SEC. 1617. MINIMIZATION OF CONFLICTS OF INTEREST OF EMPLOYEES 
OF COLLEGES RECEIVING FUNDS UNDER THE SMITH-LEVER 
ACT. 
Section 4 of the Act of May 8, 1914 (commonly known as the 
Smith-Lever Act) (7 U.S.C. 344), is amended by inserting after the 
second sentence the following: "The Secretary shall ensure that 
each college seeking to receive funds under this Act has in place 
appropriate guidelines, as determined by the Secretary, to minimize 
actual or potential conflicts of interest among employees of such 
college whose salaries are funded in whole or in part with such 
funds.". 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3733 
SEC. 1618. AGRICULTURAL EXPERIMENT STATIONS AND TRANSPOR-
TATION OF VIRUS OF FOOT-AND-MOUTH DISEASE. 
(a) REAPPORTIONMENT OF WITHHELD ALLOTMENTS FOR AGRICUL-
TURAL EXPERIMENT STATIONS.—Section 3(d) of the Act of March 2, 
1887 (7 U.S.C. 361c(d)) is amended by inserting before the period at 
the end the following: "and reapportioned among the States". 
(b) CERTAIN TRANSPORTATION AUTHORIZED UNDER ADEQUATE SAFE-
GUARDS.—The proviso in the first sentence in section 12 of the Act of 
May 29,1884 (21 U.S.C. 113a) is amended— 
(1) by striking "United States except" and inserting "United 
States (except"; and 
(2) by striking "tunnel, and" and inserting the following: Regulations, 
"tunnel) unless the Secretary determines that it is necessary 
and in the public interest for the conduct of research and study 
in the United States (except at Brookhaven National Labora-
tory in Upton, New York) and issues a permit under such rules 
as the Secretary shall promulgate to protect animal health,". 
Subtitle B—Sustainable Agriculture Research 
and Education 
SEC. 1619. PURPOSE AND DEFINITIONS. 
(a) PURPOSE.—It is the purpose of this subtitle to encourage re-
search designed to increase our knowledge concerning agricultursil 
production systems that— 
(1) maintain and enhance the quality and productivity of the 
soil; 
(2) conserve soil, water, energy, natural resources, and fish 
and wildlife habitat; 
(3) maintain and enhance the quality of surface and ground 
water; 
(4) protect the health and safety of persons involved in the 
food and farm system; 
(5) promote the well being of animals; and 
(6) increase emplo)anent opportunities in agriculture. 
(b) DEFINITIONS.—For purposes of this subtitle: 
(1) The term "sustainable agriculture" shall have the same 
meaning given to that term by section ]>404(17) of the National 
Agricultural Research, Extension, and Teaching Policy Act of 
1977 (7 U.S.C. 3103(17)). 
(2) The term "integrated crop management" means an agri-
cultural management system that integrates all controllable 
agricultural 
production 
factors 
for 
long-term 
sustained 
productivity, profitability, and ecological soundness. 
(3) The term "integrated resource management" means live-
stock management which utilizes an interdisciplinary systems 
approach which integrates all controllable £igricultural produc-
tion practices to provide long-term sustained productivity and 
profitable production of safe and wholesome food in an environ-
mentally sound manner. 
(4) The term "agribusiness" includes a producer or organiza-
tion engaged in an agricultural enterprise with a profit motive. 
(5) The term "extension" shall have the same meaning given 
to that term by section 1404(7) of the National Agricultural 
Natural 
resources. 
Fish. 
Wildlife. 
Water resources. 
Safety. 
Employment. 
Animals. 
7 u s e 5801. 
104 STAT. 3734 
PUBLIC LAW 101-624—NOV. 28, 1990 
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
3103(7)). 
(6) The term "Secretary'' means the Secretary of Agriculture. 
(7) The term "Advisory Council" means the National Sustain-
able Agriculture Advisory Council established under section 
1622(c). 
(8) The term "State" means each of the 50 States, the District 
of Columbia, the Commonwealth of Puerto Rico, Guam, the 
Virgin Islands of the United States, American Samoa, the 
Commonwealth of the Northern Marianas Islands, the Trust 
Territory of the Pacific Islands, or federally recognized Indian 
tribes. 
(9) The term "State agricultural experiment stations" shall 
have the same meaning given to that term by section 1404(13) of 
the National Agricultural Research, Extension, and Teaching 
Policy Act of 1977 (7 U.S.C. 3103(13)). 
(10) The term "nonprofit organization" means an organiza-
tion, group, institute, or institution that— 
(A) has a demonstrated capacity to conduct eigricultural 
research or education programs; 
(B) has experience in research, demonstration, education, 
or extension in sustainable agricultural practices and sys-
tems; and 
(C) qualifies as a nonprofit organization under section 
501(c) of the Internal Revenue CJode of 1986. 
SEC. 1620. REPEAL OF AGRICULTURAL PRODUCTIVITY RESEARCH. 
(a) REPEAL.—Subtitle C (sections 1461 through 1471) of the Na-
tional Agricultural Research, Extension, and Teaching Policy Act 
Amendments of 1985 (7 U.S.C. 4701-4710) is repealed. 
Ot)) CLERICAL AMENDMENT.—The table of contents at the beginning 
of the Food Security Act of 1985 (Public Law 99-198; 99 Stat. 1354) is 
amended by striking the items relating to subtitle C of title XIV. 
CHAPTER 1—BEST UTILIZATION OF BIOLOGICAL 
APPLICATIONS 
7 use 581L 
SEC. 1621. RESEARCH AND EXTENSION PROJECTS. 
(a) PROJECTS REQUIRED.—The Secretary shall conduct research 
and extension projects to obtain data, develop conclusions, dem-
onstrate technologies, and conduct educational programs that pro-
mote the purposes of this chapter, including research and extension 
projects that— 
(1) facilitate and increase scientific investigation and edu-
cation in order to— 
(A) reduce, to the extent feasible and practicable, the use 
of chemical pesticides, fertilizers, and toxic natural mate-
rials in gigricultural production; 
(B) improve low-input farm management to enhance agri-
cultural productivity, profitability, and competitiveness; 
and 
(C) promote crop, livestock, and enterprise diversification; 
and 
(2) facilitate the conduct of projects in order to— 
(A) study, to the extent practicable, agricultural produc-
tion systems that are located in areas that possess various 
soil, climate, and physical characteristics; 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3735 
(B) study farms that have been, and will continue to be, 
managed using farm production practices that rely on low-
input and conservation practices; 
(C) take advantage of the experience and expertise of 
farmers and ranchers through their direct participation 
and leadership in projects; 
(D) transfer practical, reliable and timely information to 
farmers and ranchers concerning low-input sustainable 
farming practices and systems; and 
(E) promote a partnership between farmers, nonprofit 
organizations, agribusiness, and public and private research 
and extension institutions. 
(b) AGREEMENTS.—The Secretary shall carry out this section 
through agreements entered into with land-grant colleges or univer-
sities, other universities. State agricultural experiment stations, the 
State cooperative extension services, nonprofit organizations with 
demonstrable expertise, or Federal or State governmental entities. 
(c) SELECTION OF PROJECTS.— 
(1) IN GENERAL.—The Secretary shall select research and 
extension projects to be conducted under this section on the 
basis of— 
(A) the recommendations of the Advisory Council; 
(B) the relevance of the project to the purposes of this 
chapter; 
(C) the appropriateness of the design of the project; 
(D) the likelihood of obtaining the objectives of the 
project; and 
(E) the national or regional applicability of the findings 
and outcomes of the proposed project. 
(2) PRIORITY.—In conducting projects under this section, the 
Secretary shall give priority to projects that— 
(A) are recommended by the Advisory Council; 
(B) closely coordinate research and extension activities; 
(C) indicate the manner in which the findings of the 
project will be made readily usable by farmers; 
(D) maximize the involvement and cooperation of farm-
ers, including projects involving on-farm research and dem-
onstration; 
(E) involve a multidisciplinary systems approach; and 
(F) involve 
cooperation 
between 
farms, 
non-profit 
organizations, colleges and universities, and government 
agencies. 
(d) DIVERSIFICATION OF RESEARCH.—The Secretary shall conduct 
projects and studies under this section in areas that are broadly 
representative of the diversity of United States agricultural produc-
tion, including production on family farms, mixed-crop livestock 
farms and dairy operations. 
(e) ON-FARM RESEARCH.—The Secretary may conduct projects and 
activities that involve on-farm research and demonstration in carry-
ing out this section. 
(f) IMPACT STUDIES.—The Secretary may approve study projects 
concerning the national and regional economic, global competitive-
ness, social and environmental implications of the adoption of low-
input sustainable agricultural practices and systems. 
(g) PROJECT DURATION.— 
C!olleges and 
universities. 
Nonprofit 
organizations. 
Inter-
governmental 
relations. 
104 STAT. 3736 
PUBLIC LAW 101-624—NOV. 28, 1990 
(1) IN GENERAL.—The Secretary may approve projects to be 
conducted under this section that have a duration of more than 
one fiscal year. 
(2) SEQUENCE PLANTING.—In the case of a research project 
conducted under this section that involves the planting of a 
sequence of crops or crop rotations, the Secretary shall approve 
such projects for a term that is appropriate lo the sequence or 
rotation being studied. 
(h) PUBLIC ACCESS.—The Secretary shall ensure that research 
projects conducted under this section are open for public observation 
at specified times. 
(i) INDEMNIFICATION.— 
(1) IN GENERAL.—Subject to paragraph (2), the Secretary may 
indemnify the operator of a project conducted under this section 
for damage incurred or undue losses sustained as a result of a 
rigid requirement of research or demonstration under such 
project that is not experienced in normal farming operations. 
(2) SUBJECT TO AGREEMENT.—An indemnity payment under 
paragraph (1) shall be subject to any agreement between a 
project grantee and operator entered into prior to the initiation 
of such project. 
7 use 5812. 
SEC. 1622. PROGRAM ADMINISTRATION. 
(a) DUTIES OF SECRETARY.—The Secretary shall— 
(1) administer the programs and projects conducted under 
sections 1621 and 1623 through the Cooperative State Research 
Service in close cooperation with the Extension Service, Agri-
cultural Research Service, and other appropriate agencies; 
(2) establish the Advisory Council in accordance with subsec-
tion (c); 
(3) establish a minimum of four Regional Administrative 
Councils in accordance with subsection (e); and 
(4) in conjunction with such Regional Administrative Coun-
cils, identify regional host institutions required to carry out 
such programs or projects. 
(b) REPORTS.—The Secretary shall, not later than April 1, 1991, 
and each April 1 thereafter, prepare and submit to the Committee 
on Agriculture of the House of Representatives, the Committee on 
Agriculture, Nutrition, and Forestry of the Senate, and the Advisory 
Council— 
(1) a report describing the results of the programs carried out 
under sections 1621,1623, and 1627; and 
(2) a report describing the progress of projects conducted 
under this subtitle, including— 
(A) a summary and analysis of data collected under such 
projects; 
(B) recommendations based on such data for new basic or 
applied research; 
(C) the number, length, and type of projects proposed, 
funded and carried out, by region; and 
(D) the national and regional economic, social, and 
environmental implications of the adoption of practices 
developed under this subtitle and section 1650. 
(c) NATIONAL SUSTAINABLE AGRICULTURE ADVISORY COUNCIL.—The 
membership of the National Sustainable Agriculture Advisory 
Council shall include representatives o
f
— 
(1) the Agricultural Research Service; 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3737 
(2) the Cooperative State Research Service; 
(3) the Soil Conservation Service; 
(4) the Extension Service; 
(5) State cooperative extension services; 
(6) State agricultural experiment stations; 
(7) the Economic Research Service; 
(8) the National Agricultural Library; 
(9) the Environmental Protection Agency; 
(10) the Farmers Home Administration; 
(11) the Board on Agriculture of the National Academy of 
Sciences; 
(12) private nonprofit 
organizations with 
demonstrable 
expertise; 
(13) farmers utilizing systems and practices of sustainable 
agriculture; 
(14) the United States Geological Survey; 
(15) agribusiness; and 
(16) other specialists in agricultursd research or technology 
transfer, including individuals from colleges eligible to receive 
funds under the Act of August 30, 1890 (7 U.S.C. 321 et seq.), 
including Tuskegee University, or other colleges or universities 
with demonstrable expertise. 
(d) RESPONSIBILITIES OF ADVISORY C!OUNCIL.—The Advisory (Douncil 
shall— 
(A) make recommendations to the Secretary concerning 
research and extension projects that should receive funding 
under sections 1621 and 1623; 
(B) promote the programs established under this chapter 
at the national level; 
(C) coordinate research and extension activities funded 
under such programs; 
(D) establish general procedures for awarding and admin-
istering funds under this chapter; 
(E) consider 
recommendations for improving 
such 
programs; 
(F) facilitate 
cooperation and integration 
between 
sustainable agriculture, national water quality, integrated 
pest management, food safety, and other related programs; 
and 
(G) prepare and submit an emnual report concerning its Reports, 
activities to the Secretary. 
(e) REGIONAL ADMINISTRATIVE COUNCILS.— 
(1) MEMBERSHIP.—The membership of the Regional Adminis-
trative (Councils shall include representatives of^ 
(A) the Agricultural Research Service; 
(B) the (Dooperative State Research Service; 
(C) the Extension Service; 
(D) State cooperative extension services; 
(E) State agricultural experiment stations; 
(F) the Soil Conservation Service; 
(G) State departments engaged in sustainable agriculture 
programs; 
(H) nonprofit organizations with demonstrable expertise; 
(I) farmers utilizing systems and practices of sustainable 
agriculture; 
(J) agribusiness; 
(K) the State or United States Geological Survey; and 
104 STAT. 3738 
PUBLIC LAW 101-624—NOV. 28, 1990 
(L) other persons knowledgeable about sustainable agri-
culture and its impact on the environment and rural 
communities. 
(2) RESPONSIBILITIES.—The Regional Administrative Councils 
shall— 
(A) make recommendations to the Advisory Council 
concerning research and extension projects that merit fund-
ing under sections 1621 and 1623; 
(B) promote the programs established under this subtitle 
at the regional level; 
(C) establish goals and criteria for the selection of projects 
authorized under this subtitle within the applicable region; 
(D) appoint a technical committee to evaluate the propos-
als for projects to be considered under this subtitle by such 
council; 
(E) review and act on the recommendations of the tech-
nic£il committee, and coordinate its activities with the re-
gional host institution; and 
Reports. 
(F) prepare and make available an annual report Concern-
ing projects funded under sections 1621 and 1623, together 
with an evaluation of the project activity. 
(3) CONFLICT OF INTEREST.—A member of the Regional 
Administrative Council or a technical committee may not 
participate in the discussion or recommendation of proposed 
projecte if the member has or had a professional or business 
interest in, including the provision of consultancy services, the 
organization whose grant application is under review. 
7 u s e 5813. 
SEC. 1623. FEDERAL-STATE MATCHING GRANT PROGRAM. 
(a) ESTABLISHMENT.—The Secretary shall establish a Federal-State 
matching grant program to make grants to States to assist in the 
creation or enhancement of State sustainable agriculture research, 
extension, and education programs, in furtherance of this subtitle. 
(b) EuGiBLE PROGRAMS AND ACTIVITIES.—States eligible to receive 
a grant under this section may conduct a variety of activities 
designed to carry out the purpose of this subtitle, including— 
(1) activities that encourage the incorporation and integration 
of sustainable agriculture concerns in all State research, exten-
sion, and education projects; 
(2) educational programs for farmers, educators, and the 
public; 
(3) the development and funding of innovative research, 
extension, and education programs regarding sustainable 
agriculture; 
(4) the conduct of research and demonstration projects; 
(5) the provision of technical assistance to farmers and 
ranchers; 
(6) activities that encourage farmer-to-farmer 
information 
exchanges; 
(7) the incorporation of sustainable agriculture studies in 
undergraduate and graduate degree programs; and 
(8) such other activities that are appropriate to the agricul-
tural concerns of the State that are consistent with the purpose 
of this chapter. 
(c) SUBMISSION OF PLAN.— 
(1) REQUIRED.—States that elect to apply for a grant under 
this section shall prepare and submit, to the appropriate Re-
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3739 
gional Administrative Council established under section 1622, a 
State plan and schedule for approval by such council and the 
Secretary. 
(2) ELEMENTS OF PLAN.—State plans prepared under para-
graph (1) shall provide details of the proposed program to be 
implemented using funds provided under this section for fiscal 
years 1991 through 1995, or any 5-year period thereafter, and 
shall identify the sources of matching State funds for the same 
fiscal year. 
(3) PARTICIPATION OF FARMERS.—To be eligible for approval. 
State plans submitted under this subsection shall demonstrate 
that there will be extensive and direct participation of farmers 
in the development, implementation, and evaluation of the 
program. 
(d) GRANT AWARD.— 
(1) LIMITS.—Subject to paragraph (2), the Secretary shall pro-
vide grants to eligible States in an amount not to exceed 50 
percent of the cost of the establishment or enhancement of a 
State sustainable agriculture program under a plan approved 
by the Secretary under subsection (c) for a period not to exceed 5 
years. 
(2) STATE CONTRIBUTION.—To be eligible to receive a grant 
under this section, a State shall agree to pay, from State 
appropriated funds, other State revenue, or from private con-
tributions received by the State, not less than 50 percent of the 
cost of the establishment or enhancement of the sustainable 
agriculture program under an approved plan under subsection 
(0. 
SEC. 1624. AUTHORIZATION OF APPROPRIATIONS. 
7 USC 5814. 
There are authorized to be appropriated $40,000,000 for each fiscal 
year to carry out this chapter. Of amounts appropriated to carry out 
this chapter for a fiscal year, not less than $15,000,000, or not less 
than two thirds of any such appropriation, whichever is greater, 
shall be used to carry out sections 1621 and 1623. 
CHAPTER 2—INTEGRATED MANAGEMENT SYSTEMS 
Livestock. 
SEC. 1627. INTEGRATED MANAGEMENT SYSTEMS. 
7 USC 5821. 
(a) ESTABUSHMENT.—The Secretary shall establish a research and 
education program concerning integrated resource management and 
integrated crop management in order to enhance research related to 
farming operations, practices, and systems that optimize crop and 
livestock production potential and are environmentally sound. The 
purpose of the program shall be— 
(1) to encourage producers to adopt integrated crop and live-
stock management practices and systems that minimize or 
abate adverse environmental impacts, reduce soil erosion and 
loss of water and nutrients, enhance the efficient use of on-farm 
and off-farm inputs, and maintain or increase profitability and 
long-term productivity; 
(2) to develop knowledge and information on integrated crop 
and livestock management systems and practices to assist agri-
cultural producers in the adoption of these systems and 
practices; 
(3) to accumulate and analyze information on agricultural 
production practices researched or developed under programs 
39-194 O - 91 - 14 : QL 3 Part 5 
104 STAT. 3740 
PUBLIC LAW 101-624—NOV. 28, 1990 
established under this subtitle, subtitle G of title XIV, and 
section 1650 and other appropriate programs of the Department 
of Agriculture to further the development of integrated crop 
and livestock management systems; 
(4) to facilitate the adoption of whole-farm integrated crop 
and livestock management systems through demonstration 
projects on individual farms, including small and limited re-
source farms, throughout the United States; and 
(5) to evaluate and recommend appropriate integrated crop 
and livestock management policies aad programs. 
Qy) DEVELOPMENT AND ADOPTION OF INTEGRATED CROP MANAGE-
MENT PRACTICES.—The Secretary shall encourage 
agricultural 
producers to adopt and develop individual, site-specific integrated 
crop management practices. On a priority basis, the Secretary shall 
develop and disseminate information on integrated crop manage-
ment systems for agricultural producers in specific localities or crop 
producing regions where the Secretary determines— 
(1) water quality is impaired as a result of local or regional 
agricultural production practices; or 
(2) the adoption of such practices may aid in the recovery of 
endangered or threatened species. 
(c) DEVELOPMENT AND ADOPTION OF INTEGRATED RESOURCE 
MANAGEMENT PRACTICES.—The Secretary shall, on a priority basis, 
develop programs to encourage livestock producers to develop and 
adopt individual, site-specific integrated resource management prac-
tices. These programs shall be designed to benefit producers and 
consumers through— 
(1) optimum use of available resources and improved produc-
tion and financial efficiency for producers; 
(2) identifjdng and prioritizing the research and educational 
needs of the livestock industry relating to production and finan-
cial efficiency, competitiveness, environmental stability, and 
food safety; and 
(3) utilizing an interdisciplinary approach. 
(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 
be appropriated for each fiscal year $20,000,000 to carry out this 
section through the Extension Service. 
CHAPTER 3—SUSTAINABLE AGRICULTURE TECHNOLOGY 
DEVELOPMENT AND TRANSFER PROGRAM 
7 use 5831. 
SEC. 1628. TECHNICAL GUIDES AND HANDBOOKS. 
(a) DEVELOPMENT.—Not later than two years after the date of the 
enactment of this Act, the Secretary shall develop and make avail-
able handbooks and technical guides, and any other educational 
materials that are appropriate for describing sustainable agri-
culture production systems and practices, as researched and devel-
oped under this subtitle, subtitle G of title XIV, section 1650, and 
other appropriate research programs of the Department. 
0?) CONSULTATION AND COORDINATION.—The Secretary shall de-
velop the hgmdbooks, technical guides, and educational materials in 
consultation with the Advisory Council, the Soil Conservation Serv-
ice, and any other appropriate entities designated by the Secretary. 
The Secretary shall coordinate activities conducted under this sec-
tion with those conducted under section 1261 of the Food Security 
Act of 1985, as added by section 1446. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3741 
(c) TOPICS OF HANDBOOKS AND GUIDES.—The handbooks and 
guides, and other education materials, shall include detailed 
information on the selection of crops and crop-plant varieties, rota-
tion practices, soil building practices, tillage systems, nutrient 
management, integrated pest management practices, habitat protec-
tion, pest, weed, and disease management, livestock management, 
soil, water, and energy conservation, and any other practices in 
accordance with or in furtherance of the purpose of this subtitle. 
(d) ORGANIZATION AND CONTENTS.—The handbooks and guides, 
and other educational materials, shall provide practical instructions 
and be organized in such a manner as to enable agricultural produc-
ers desiring to implement the practices and systems developed 
under this subtitle, subtitle G of title XIV, section 1650, and other 
appropriate research programs of the Department to address site-
specific, environmental and resource management problems and to 
sustain farm profitability, including— 
(1) enhancing and maintaining the fertility, productivity, and 
conservation of farmland and ranch soils, ranges, pastures, and 
wildlife; 
(2) maximizing the efficient and effective use of agricultural 
inputs; 
(3) protecting or enhancing the quality of water resources; or 
(4) optimizing the use of on-farm and nonrenewable resources. 
(e) AvAiLABiuTY.—The Secretary shall ensure that handbooks and Public 
technical guides, and other educational materials are made avail- information. 
able to the agricultural community and the public through colleges 
and universities, the State Cooperative Extension Service, the Soil 
Conservation Service, other State and Federal agencies, and any 
other appropriate entities. 
(f) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 
be appropriated such sums as may be necessary to carry out the 
provisions of this section. 
SEC. 1629. NATIONAL TRAINING PROGRAM. 
7 USC 5832. 
(a) IN GENERAL.—The Secretary shall establish a National Train-
ing Program in Sustainable Agriculture to provide education and 
training for Cooperative Extension Service agents and other profes-
sionals involved in the education and transfer of technical informa-
tion concerning sustainable agriculture in order to develop their 
understanding, competence, and ability to teach and communicate 
the concepts of sustainable agriculture to Cooperative Extension 
Service agents and to farmers and urban residents who need 
information on sustainable agriculture. 
OJ) ADMINISTRATION.—The National Training Program shall be 
organized and administered by the Extension Service, in coordina-
tion with other appropriate Federal ^encies. The Secretary shall 
designate an individual from the Cooperative Extension Service in 
each State to coordinate the National Training Program within that 
State. The coordinators shall be responsible, in cooperation with 
appropriate Federal and State agencies, for developing and im-
plementing a statewide training program for appropriate field office 
personnel. 
(c) REQUIRED TRAINING.— 
(1) AGRICULTURAL AGENTS.—The Secretary shall insure that 
all agricultural agents of the Cooperative Extension Service 
have completed the National Training Program not later than 
the end of the five-year period beginning on the date of enact-
104 STAT. 3742 
PUBLIC LAW 101-624—NOV. 28, 1990 
Colleges and 
universities. 
Public 
information. 
Inter-
governmental 
relations. 
ment of this Act, Such training may occur at a college or 
university located within each State as designated by the 
coordinator designated under this section. 
(2) PROOF OF TRAINING.—Beginning three years after the date 
of enactment of this Act, the Secretary shall ensure that all new 
Cooperative Extension Service agents employed by such Service 
are able to demonstrate, not later than 18 months after the 
employment of such agents, that such agents have completed 
the training program established in subsection (a). 
(d) REGIONAL TRAINING CENTERS.— 
(1) DESIGNATION.—The Secretary shall designate not less than 
two regional training centers to coordinate and administer 
educational activities in sustainable agriculture as provided for 
in this section. 
(2) TRAINING PROGRAM.—Such centers shall offer intensive 
instructional programs involving classroom and field training 
work for extension specialists and other individuals who are 
required to transmit technical information. 
(3) PROHIBITION ON CONSTRUCTION.—Such centers shall be 
located at existing facilities, and no funds appropriated to carry 
out this chapter shall be used for facility construction. 
(4) ADMINISTRATION.—Such centers should be administered by 
entities that have a demonstrated capability relating to sustain-
able agriculture. The Secretary should consider utilizing exist-
ing entities with expertise in sustainable agriculture to assist in 
the design and implementation of the training program under 
paragraph (2). 
(5) COORDINATION OF RESOURCES.—Such centers shall make 
use of information generated by the Department of Agriculture 
and the State agricultural experiment stations, and the prac-
tical experience of farmers, especially those cooperating in on-
farm demonstrations and research projects, in carrying out the 
functions of such centers. 
(e) COMPETITIVE GRANTS.— 
(1) IN GENERAL.—The Secretary shall establish a competitive 
grants program to award grants to organizations, including 
land-grant colleges and universities, to carry out sustainable 
agricultural training for county agents and other individuals 
that need basic information concerning sustainable agriculture 
practices. 
(2) SHORT COURSES.—The purpose of the ^ants made available 
under paragraph (1) shall be to establish, in various regions in 
the United States, training programs that consist of workshops 
and short courses designed to familiarize participants with the 
concepts and importance of sustainable agriculture. 
(f) REGIONAL SPECIALISTS.—To assist county agents and farmers 
implement production practices developed under this subtitle, sub-
title G of title XrV, section 1650, and other appropriate research 
programs of the Department, regional sustamable agriculture 
specialists may be designated within each State who shall report to 
the State coordinator of that State. The specialists shall be respon-
sible for developing and coordinating local dissemination of sustain-
able agriculture information in a manner that is useful to farmers 
in the region. 
(g) INFORMATION AVAILABILITY.—The Cooperative Extension Serv-
ice within each State shall transfer information developed imder 
this subtitle, subtitle G of title XIV, section 1650, and other appro-
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3743 
priate research programs of the Department through a program 
that shall— 
(1) assist in developing farmer-to-farmer information ex-
change networks to enable farmers making transitions to more 
sustainable farming systems to share ideas and draw on the 
experiences of other farmers; 
(2) help coordinate and publicize a regular series of sustain-
able agriculture farm tours and field days within each State; 
(3) plan for extension programming, 'including extensive 
farmer input and feedback, in the design of new and ongoing 
research endeavors related to sustainable agriculture; 
(4) provide technical assistance to individual farmers in the 
design and implementation of farm management plans and 
strategies for making a transition to more sustainable agricul-
tural systems; 
(5) consult and work closely with the Soil Conservation Serv-
ice and the Agricultural Stabilization and Conservation Service 
in carrying out the information, technical assistance, and 
related programs; 
(6) develop, coordinate, and direct special education and out-
reach programs in areas highly susceptible to groundwater 
contamination, linking sustainable agriculture information 
with water quality improvement information; 
(7) develop information sources relating to crop diversifica-
tion, alternative crops, on-farm food or commodity processing, 
and on-farm energy generation; 
(8) establish a well-water testing program designed to provide 
those persons dependent upon underground drinking water sup-
plies with an understanding of the need for regular water 
testing, information on sources of testing, and an understanding 
of how to interpret test results and provide for the protection of 
underground water supplies; 
(9) provide specific information on water quality practices 
developed through the research programs in subtitle G of title 
XIV; 
(10) provide specific information on nutrient management 
practices developed through the research programs in subtitle G 
of title XIV; and 
(11) provide information concerning whole-farm management 
systems integrating research results under this subtitle, subtitle 
G of title XIV, section 1650, and other appropriate research 
programs of the Department. 
(h) DEFINITION.—For purposes of this section, the term "appro-
priate field office personnel" includes employees of the Extension 
Service, Soil Conservation Service, and other appropriate Depart-
ment of Agriculture personnel, as determined by the Secretary, 
whose activities involve the provision of agricultural production and 
conservation information to agricultural producers. 
(i) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 
be appropriated $20,000,000 for each fiscal year to carry out the 
National Training Program. 
104 STAT. 3744 
PUBLIC LAW 101-624—NOV. 28, 1990 
Subtitle C—National Genetics Resources 
Program 
7 use 5841. 
SEC. 1632. ESTABLISHMENT, 
PURPOSE, 
AND 
FUNCTIONS 
OF 
THE 
NATIONAL GENETIC RESOURCES PROGRAM. 
(a) IN GENERAL.—The Secretary of Agriculture shall provide for a 
National (Jenetic Resources Program. 
(b) PURPOSE.—The program is established for the purpose of 
maintaining and enhancing a program providing for the collection, 
preservation, and dissemination of genetic material of importance to 
American food and agriculture production. 
(c) ADMINISTRATION.—The program shall be administered by the 
Secretary through the Agricultural Research Service. 
(d) FUNCTIONS.—The Secretary, acting through the program, 
shall— 
(1) provide for the collection, classification, preservation, and 
dissemination of genetic material of importance to the food and 
agriculture sectors of the United States; 
(2) conduct research on the genetic materials collected and on 
methods for storage and preservation of those materials; 
(3) coordinate the activities of the progrsim with similar activi-
ties occurring domestically; 
(4) meike available upon request, without charge and without 
regard to the country from which such request originates, the 
genetic material which the program assembles; 
(5) expand the tjrpes of genetic resources included in the 
program to develop a comprehensive genetic resources program 
which includes plants (including silvicultural species), animal, 
aquatic, insect, microbiological, and other types of genetic re-
sources of importance to food and agriculture, as resources 
permit; and 
(6) engage in such other activities as the Secretary determines 
appropriate and as the resources of the program permit. 
7 use 5842. 
SEC. 1633. APPOINTMENT AND AUTHORITY OF DIRECTOR. 
(a) DIRECTOR.—There shall be at the head of the progrgim an 
ofQcial to be known as the Director of the National Genetic Re-
sources program who shall be appointed by the Secretary. The 
Director shall perform such duties as are assigned to the Director by 
this subtitle £ind such other duties as the Secretary may prescribe. 
(b) ADMINISTRATIVE AUTHORITY.—In carrying out this subtitle, the 
Secretary, acting through the Director— 
(1) shall be responsible for the overall direction of the pro-
gram and for the establishment and implementation of general 
policies respecting the management and operation of activities 
within the program; 
(2) may secure for the program consultation services and 
advice of persons from the United States and abroad; 
(3) may accept voluntary and uncompensated services; and 
(4) may perform such other administrative functions as the 
Secretary determines are needed to effectively carry out this 
subtitle. 
(c) DUTIES.—The Director shall— 
(1) advise participants on the program activities; 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3745 
(2) coordinate, review and facilitate the systematic identifica-
tion and evaluation of, relevant information generated under 
the program; 
(3) promote the effective transfer of the information described 
in paragraph (2) to the agriculture and food production commu-
nity and to entities that require such information; and 
(4) monitor the effectiveness of the activities described in 
paragraph (3). 
(d) BIENNIAL REPORTS.—The Director shall prepare and transmit 
to the Secretary and to the Congress a biennial report containing— 
(1) a description of the activities carried out by and through 
the program and the policies of the program, and such rec-
ommendations respecting such activities and policies as the 
Director considers to be appropriate; 
(2) a description of the necessity for, and progress achieved 
toward providing, additional programs and activities designed 
to include the range of genetic resources described in section 
1632(d)(5) in the activities of the program; and 
(3) an assessment of events and activities occurring inter-
nationally as they relate to the activities and policies of the 
program. 
(e) INITIAL REPORTS.—Not later than one year after the date of the 
enactment of this Act, the Director shall transmit to the Secretary 
and to the Congress a report— 
(1) describing the projected needs over a 10-year period in 
each of the areas of genetic resources described in section 
1632(d)(5), including the identification of existing components of 
a comprehensive program, policies and activities needed to 
coordinate those components, and additional elements not in 
existence which are required for the development of a com-
prehensive genetic resources program as described in such sec-
tion; 
(2) assessing the international efforts and activities related to 
the program, and their effect upon and coordination with the 
program; and 
(3) evaluating the potential effect of various national laws, 
including national quarantine requirements, as well as treaties, 
agreements, and the activities of international organizations on 
the development of a comprehensive international system for 
the collection and maintenance of genetic resources of impor-
tance to agriculture. 
SEC. 1634. ADVISORY COUNCIL. 
7 USC 5843. 
(a) ESTABLISHMENT AND MEMBERSHIP.—The Secretary shall estab-
lish an advisory council for the program for the purpose of advising, 
assisting, consulting with, and making recommendations to, the 
Secretary and Director concerning matters related to the activities, 
policies and operations of the program. The advisory council shall 
consist of ex officio members and not more than nine members 
appointed by the Secretary. 
(b) Ex OFFICIO MEMBERS.—The ex officio members of the advisory 
council shall consist of the following persons (or their designees): 
(1) The Director. 
(2) The Assistant Secretary of Agriculture for Science and 
Education. 
(3) The Director of the National Agricultural Library. 
(4) The Director of the National Institutes of Health. 
104 STAT. 3746 
PUBLIC LAW 101-624—NOV. 28, 1990 
(5) The Director of the National Science Foundation. 
(6) The Secretary of Energy. 
(7) The Director of the Office of Science and Technology 
Policy. 
(8) Such additional officers and employees of the United 
States as the Secretary determines are necessary for the ad-
visory council to effectively carry out its functions. 
(c) APPOINTMENT OF OTHER MEMBERS.—The members of the 
ad-
visory council who are not ex officio members shsdl be appointed by 
the Secretary as follows: 
(1) Two-thirds of the members shall be appointed from among 
the leading representatives of the scientific disciplines relevant 
to the activities of the program, including Eigricultural sciences, 
environmental sciences, natural resource sciences, health sci-
ences, and nutritional sciences. 
(2) One-third of the members shall be appointed from the 
general public and shall include leaders in fields of public 
policy, trade, international development, law, or management. 
(d) COMPENSATION.—Members of the advisory council shall serve 
without compensation, if not otherwise officers or employees of the 
United States, except that they shall, while away from their homes 
or regular places of business in the performance of services for the 
advisory council, be allowed travel expenses, including per diem in 
lieu of subsistence, in the same manner as persons employed inter-
mittently in the Government service are allowed expenses under 
sections 5701 through 5707 of title 5, United States Code. 
(e) TERM OF OFFICE OF APPOINTEES; VACANCIES.— 
(1) TERM.—The term of office of a member appointed under 
subsection (c) is four years, except that any member appointed 
to fill a vacancy occurring before the expiration of the term for 
which the predecessor of such member was appointed shall be 
appointed only for the remainder of such term. 
(2) INITIAL APPOINTMENT.—The Secretary shall make appoint-
ments to the advisory council so as to ensure that the terms of 
the members appointed under subsection (c) do not all expire in 
the same year. A member may serve after the expiration of the 
member's term until a successor takes office. 
(3) REAPPOINTMENT.—A member who is appointed for a term 
» 
of four years may not be reappointed to the advisory council 
before two years after the date of expiration of such term of 
office. 
(4) VACANCIES.—If a vacancy occurs in the advisory council 
among the members appointed under subsection (c), the Sec-
retary shall make an appointment to fill such vacancy within 90 
days after the date such vacancy occurs. 
(f) CHAIR.—The Secretary shall select as the chair of the advisory 
council one of the members appointed under subsection (c). The term 
of office of the chair shall be two years. 
(g) MEETINGS.—The advisory council shall meet at the call of the 
chair or on the request of the Director, but at least two times each 
fiscal year. The location of the meetings of the advisory council shall 
be subject to the approval of the Director. 
(h) STAFF.—The Director shall make available to the advisory 
council such staff, information, and other assistance as it may 
require to carry out its functions. 
(i) ORIENTATION AND TRAINING.—The Director shall provide such 
orientation and trsdning for new members of the advisory council as 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3747 
may be appropriate for their effective participation in the functions 
of the advisory council. 
(j) COMMENTS AND RECOMMENDATIONS.—The advisory council may 
prepare, for inclusion in a report submitted under section 1633— 
(1) comments respecting the activities of the advisory council 
during the period covered by the report; 
(2) comments on the progress of the program in meeting its 
objectives; and 
(3) recommendations respecting the future directions, pro-
gram, and policy emphasis of the progrgrai. 
(k) REPORTS.—The advisory council may prepare such reports as 
the advisory council determines to be appropriate. 
(1) APPUCATION OF ADVISORY COMMITTEE ACT.—Section 14(a) of the 
Federal Advisory Committee Act (5 U.S.C. App.) relating to the 
termination of an advisory committee shall not apply to the ad-
visory committee established under this section. 
SEC. 1635. DEFINITIONS AND AUTHORIZATION OF APPROPRIATIONS. 
(a) DEFINITIONS.—For purposes of this subtitle: 
(1) The term "program' 
sources Program. 
(2) The term "Secretary" means the Secretary of Agriculture. 
(3) The term "Director" means the Director of the National 
Genetic Resources Program. 
(b) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 
be appropriated such funds as may be necessary to carry out this 
subtitle for each of the fiscal years 1991 through 1995. 
means the National Genetic Re-
7 u s e 5844. 
Subtitle D—National Agricultural Weather 
Information System 
SEC. 1637. SHORT TITLE AND PURPOSES. 
(a) SHORT TITLE.—This subtitle may be cited as the "National 
Agricultural Weather Information System Act of 1990". 
(b) PURPOSES.—The purposes of this subtitle are— 
(1) to provide a nationally coordinated agricultural weather 
information system, based on the participation of universities, 
State programs. Federal agencies, and the private weather 
consulting sector, and aimed at meeting the weather and cli-
mate information needs of agricultural producers; 
(2) to facilitate the collection, organization, and dissemination 
of advisory weather and climate information relevant to agri-
cultural producers, through the participation of the private 
sector and otherwise; 
(3) to provide for research and education on agricultural 
weather and climate information, aimed at improving the qual-
ity and quantity of weather and climate information available 
to agricultural producers, including research on short-term fore-
caste of thunderstorms and on extended weather forecasting 
techniques and models; 
(4) to encourage, where feasible, greater private sector partici-
pation in providing agricultural weather and climate informa-
tion, to encourage private sector participation in educating and 
training farmers and others in the proper utilization of agricul-
tural weather and climate information, and to strengthen their 
National 
Agricultural 
Weather 
Information 
System Act 
of 1990. 
Science and 
technology. 
Computer 
technology. 
Education. 
7 u s e 5851. 
104 STAT. 3748 
PUBLIC LAW 101-624—NOV. 28, 1990 
ability to provide sitenspecific weather forecasting for farmers 
and the agricultural sector in general; and 
(5) to ensure that the weather and climate data bases needed 
by the agricultural sector are of the highest scientific accuracy 
and thoroughly documented, and that such data bases are easily 
accessible for remote computer access. 
7 use 5852. 
SEC. 1638. AGRICULTURAL WEATHER OFFICE. 
(a) ESTABLISHMENT OF THE OFFICE AND ADMINISTRATION OF THE 
SYSTEM.— 
(1) EsTABUSHMENT REQUIRED.—The Secretary of Agriculture 
shall establish in the Department of Agriculture an Agricul-
tural Weather Office to plan and administer the National Agri-
cultural Weather Information System. The system shall be 
comprised of the office established under this section and the 
activities of the State agricultural weather information systems 
described in section 1640. 
(2) DIRECTOR.—The Secretary shall appoint a Director to 
msinage the activities of the Agricultural Weather Office and to 
advise the Secretary on scientific and programmatic coordina-
tion for climate, weather, and remote sensing. 
(b) AUTHORITY.—The Secretary, acting through the Office, may 
undertake the following activities to carry out this subtitle: 
(1) Enter into cooperative projects with the National Weather 
Service to— 
(A) support operational weather forecasting and observa-
tion useful in £igriculture; 
(B) sponsor joint workshops to train agriculturalists about 
the optimum utilization of agricultural weather and cli-
mate data; 
(C) jointly develop improved computer models and 
computing capacity; and 
(D) enhance the quality emd availability of weather and 
climate information needed by agriculturalists. 
(2) Obtain standardized weather observation data collected in 
near real time through State agricultural weather information 
systems. 
(3) Make, through the CJooperative State Research Service, 
competitive grants under subsection (c) for research in at-
mospheric sciences and climatology. 
(4) Make grants to eligible States under section 1640 to plan 
and administer State agricultural weather information systems. 
(5) Coordinate the activities of the Office with the weather 
and climate research activities of the Cooperative State Re-
search Service, the National Academy of Sciences, the National 
Sciences Foundation Atmospheric Services Program, and the 
National Climate Program. 
(6) Encourage private sector participation in the National 
Agricultural Weather Information System through mutually 
beneficial cooperation with the private sector, particularly in 
generating weather and climatic data useful for site-specific 
agricultural weather forecasting. 
(c) COMPETITIVE GRANTS PROGRAM.— 
(1) GRANTS AUTHORIZED.—With funds allocated to carry out 
this subsection, the Secretary of Agriculture may make grants 
to State agricultural experiment stations, all colleges and 
universities, other research institutions and organizations. Fed-
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3749 
eral agencies, private organizations and corporations, and 
individuals to carry out research in all aspects of atmospheric 
sciences and climatology that can be shown to be important in 
both a basic and developmental way to understanding, forecast-
ing, and delivering agricultural weather information. 
(2) COMPETITIVE BASIS.—Grants made under this subsection 
shall be made on a competitive basis, 
(d) PRIORITY.—In selecting among applications for grants under 
subsection (c), the Secretary shall give priority to proposals which 
emphasize— 
(1) techniques and processes that relate to weather-induced 
agricultural losses, and to improving the advisory information 
on weather extremes such as drought, floods, freezes, and 
storms well in advance of their actual occurrence; 
(2) the improvement of site-specific weather data collection 
and forecasting; or 
(3) the impact of weather on economic and environmental 
costs in agricultural production. 
SEC. 1639. NATIONAL ADVISORY BOARD ON AGRICULTURAL WEATHER. 7 USC 5853. 
(a) ESTABLISHMENT.—The Secretary of Agriculture shall establish 
the Advisory Board on Agricultural Weather (hereinafter referred 
to in this section as the "Board") to advise the Director of the 
Agricultural Weather Office with respect to carrying out this Act. 
(b) COMPOSITION.—The Board shall be composed of nine members, 
appointed by the Secretary in consultation with the Director of the 
National Weather Service. Two of the members shall be from each 
of the four regions of the cooperative extension service. Of the two 
members from each region, one shall be an agricultural producer 
and one shall be an agricultural or atmospheric scientist. At least 
two members of the Board shall be appointed from among individ-
uals who are engaged in providing private meteorology services or 
consulting with a private meteorology firm. 
(c) CHAIRPERSON.—The Board shall elect a chairperson from 
among its members. 
(d) TERM.—Each Board member shall be appointed for a three-
year term, except that to ensure that members of the Board serve 
staggered terms, the Secretary shall appoint three of the original 
members of the Board to appointments for one year, and three of the 
original members to appointments for two years. 
(e) MEETINGS.—The Board shall meet not less than twice annually. 
(f) COMPENSATION.—Members of the Board shall serve without 
compensation, but while away from their homes or regular places of 
business in the performance of services for the Board, members of 
the Board shall be allowed travel expenses, including a per diem 
allowance in lieu of subsistence, in the same manner as individuals 
employed in Government service are allowed travel expenses under 
section 5703 of title 5, United States Code. 
(g) FEDERAL ADVISORY COMMITTEE ACT.—Section 14(a)(2) of the 
Federal Advisory Committee Act (5 U.S.C. App.) shall not apply with 
respect to the Board. 
SEC. 1640. STATE AGRICULTURAL WEATHER INFORMATION SYSTEMS. 
7 USC 5854. 
(a) ADVISORY PROGRAM GRANTS.— 
(1) GRANTS REQUIRED.—With funds allocated to carry out this 
section, the Secretary of Agriculture shall make grants to not 
fewer than 10 eligible States to plan and administer, in coopera-
104 STAT. 3750 
PUBLIC LAW 101-624—NOV. 28, 1990 
tion with persons described in paragraph (2), advisory programs 
for State agricultural weather information systems. 
(2) PERSONS DESCRIBED.—The persons referred to in paragraph 
(1) are the Director of the Agricultural Weather Office, the 
Administrator of the Extension Service, the Administrator of 
the Cooperative State Research Service, and other persons as 
appropriate (such as the directors of the appropriate State 
agricultural experiment stations and State extension programs). 
(b) CONSULTATION.—For purposes of selecting among applications 
submitted by States for grants under this section, the Secretary 
shall take into consideration the recommendation of the Advisory 
Board on Agricultural Weather and consult with the Director. 
(c) EuGiBiUTY REQUIREMENTS.—To be eligible to receive a grant 
under this section, the chief executive officer of a State shall submit 
to the Secretary an application that contains— 
(1) assurances that the State will expend such grant to plan 
and administer a State agricultural weather system that will— 
(A) collect observational weather data throughout the 
State and provide such data to the National Weather Serv-
ice and the Agricultural Weather Office; 
(B) develop methods for packaging information received 
from the national system for use by agricultural producers 
(with State Cooperative Extension Services and the private 
sector to serve as the primary conduit of agricultural 
weather forecasts and climatic information to producers); 
and 
(C) develop programs to educate agricultural producers 
on how to best use weather and climate information to 
improve management decisions; and 
(2) such other assurances and information as the Secretary 
may require by rule. 
7 use 5855. 
SEC. 1641. FUNDING. 
(a) ALLOCATION OF FUNDS.— 
(1) COOPERATIVE WORK.—Not less than 15 percent and not 
more than 25 percent of the funds appropriated for a fiscal year 
to carry out this subtitle shall be used for cooperative work with 
the National Weather Service entered into under section 
1638(bXl). 
(2) COMPETITIVE GRANTS PROGRAM.—Not less than 15 percent 
and not more than 25 percent of such funds shall be used by the 
Cooperative State Research Service for a competitive grants 
program under section 1638(c). 
(3) WEATHER INFORMATION SYSTEMS.—Not less than 25 percent 
and not more than 35 percent of such funds shall be divided 
equally between the participating States selected for that fiscal 
year under section 1640. 
(4) OTHER PURPOSES.—The remaining funds shall be allocated 
for use by the Agricultural Weather Office and the Extension 
Service in carrjdng out generally the provisions of this subtitle. 
(b) LIMITATIONS ON USE OF FUNDS.—Funds provided under the 
authority of this subtitle shall not be used for the construction of 
facilities. Each State or agency receiving funds shall not use more 
than 30 percent of such funds for equipment purchases. Any use of 
the funds in facilitating the distribution of agricultural and climate 
information to producers shall be done with consideration for the 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3751 
role that the private meteorological sector can play in such informa-
tion delivery. 
(c) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 
be appropriated $5,000,000 to carry out this subtitle for each of the 
fiscal years 1991 through 1995. 
Subtitle E—Research Regarding the Produc-
tion, Preparation, Processing, Handling, and 
Storage of Agricultural Products 
SEC. 1644. RESEARCH AND GRANT PROGRAM. 
7 USC 5871. 
(a) RESEARCH PROGRAM.—The Secretary of Agriculture shall Microbiology. 
establish a research program to— 
Chemicals. 
(1) 
establish 
a 
statistical 
framework 
to 
measure 
microbiological and chemical agents in or affecting agricultural 
products that seriously undermine product wholesomeness and 
fitness; 
(2) identify any microbiological or chemical agent under the 
statistical framework established under paragraph (1); and 
(3) identify the means to avoid microbiological and chemical 
agents in or affecting agricultural products or to control or 
reduce such agents, including— 
(A) developing techniques for the rapid detection and 
identification of such microbiological and chemical agents; 
(B) analyzing the production, preparation, processing, 
handling, storage, and distribution of agricultural products, 
to determine those points at which intervention could occur 
to control microbiological or chemical agents in or affecting 
an agricultural product; and 
(C) research to develop or enhance existing techniques to 
control microbiological or chemical agents in or affecting 
an agricultural product, including food irradiation re-
search. 
0)) COMPETITIVE GRANT PROGRAM.—The Secretary of Agriculture 
may make competitive grants, after consultation with the commit-
tee established under section 1645, for periods not to exceed five 
years, to persons and governmental entities for research to be 
carried out for any of the activities specified in subsection (a). The 
Secretary shall require the recipient of any such grant to provide 
matching funds for such research unless the Secretary determines 
that the research should be performed notwithstanding the lack of 
matching funds. 
(c) PROHIBITED USES.—No grant may be made under subsection (b) 
(or expended by the recipient of such a grant) for the planning, 
repair, rehabilitation, acquisition, or construction of a building or a 
facility. 
(d) ELIGIBILITY REQUIREMENTS.—TO be eligible to receive a grant 
under subsection (b), a person or governmental entity shall submit 
to the Secretary an application that contains— 
(1) a proposal to carry out research for one or more of the 
activities specified in subsection (a); 
(2) an assurance that such person or entity will submit to the 
Secretary a detailed report of the research conducted with such 
grant; and 
104 STAT. 3752 
PUBLIC LAW 101-624—NOV. 28, 1990 
(3) such other terms and conditions as the Secretary may 
require by rule. 
(e) EFFECT ON OTHER PROGRAMS.—Nothing in this section shall be 
construed or interpreted— 
(1) to limit or otherwise affect the research programs of any 
agency or department of the Federal Government currently 
conducted or to be conducted under any other statutory author-
ity; or 
(2) to implement any changes to current production, prepara-
tion, processing, handling and storage methods and procedures 
for agricultural products. 
(f) AGRICULTURAL PRODUCT DEFINED.—For purposes of this section, 
the term "agricultural product" means the product of an agricul-
tural commodity produced in the United States from a plant or 
animal or silvicultural activities, or an aquacultural species, includ-
ing those raised and propagated in a controlled environment. 
7 use 5872. 
SEC. 1645. ADVISORY COMMITTEE AND GRANT PROCESS. 
(a) ADVISORY COMMITTEE.—The Secretary of Agriculture shall 
establish a committee to set research priorities for, and evaluate, 
proposed research projects for which greuits under section 1644(b) 
are requested. 
(b) MEMBERSHIP.—The committee shall be comprised of 13 mem-
bers as follows: 
(1) The Secretary or the designee of the Secretary ex officio. 
(2) Two members appointed by the Secretary from among 
scientists who are employed by colleges, universities, or State 
agricultural experiment stations and who are specially qualified 
to serve on the committee by virtue of their demonstrated, 
generally recognized expertise in food science, microbiology, 
veterinary medicine, pathology, or any other appropriate sci-
entific discipline. 
(3) Two members appointed by the Secretary from among 
scientists or public health professionals who are employed by 
private research organizations or other entities involved in food 
research and who are specially qualified to serve on the commit-
tee by virtue of their demonstrated, generally recognized exper-
tise in 
food 
science, microbiology, veterinary 
medicine, 
pathology, or any other appropriate scientific discipline. 
(4) Two members appointed by the Secretary from among 
individuals who are employees of the Federal Grovernment and 
who are specially qualified to serve on the committee by virtue 
of their demonstrated, generally recognized expertise in food 
science, microbiology, veterinary medicine, pathology, or any 
other appropriate scientific discipline. 
(5) Three members appointed by the Chairman of the Commit-
tee on Agriculture of the House of Representatives (in consulta-
tion with the ranking minority member of that Committee) 
from persons who are specially qualified to serve on the commit-
tee by virtue of their demonstrated, generally recognized exper-
tise in food 
science, microbiology, veterinary 
medicine, 
pathology, or any other appropriate scientific discipline. 
(6) Three members appointed by the Chairman of the Commit-
tee on Agriculture, Nutrition, and Forestry of the Senate (in 
consultation with the ranking minority member of that 
Committee) from persons who are specially qualified to serve on 
the committee by virtue of their demonstrated, generally recog-
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3753 
nized expertise in food science, microbiology, veterinary medi-
cine, pathology, or any other appropriate scientific discipline. 
(c) PuBuc NOTICE.— 
(1) PROPOSED RESEARCH PRIORITIES.—On receipt of the commit-
tee's recommendations with respect to research priorities for 
grants awarded under section 16440t)), the Secretary shall pub-
lish in the Federal Register— 
(A) the proposed research priorities, and 
(B) a notice requesting persons and governmental entities 
to submit written comments on the priorities to the Sec-
retary not later than sixty days after publication of such 
notice. 
(2) FINAL RESEARCH PRIORITIES.—After review of comments 
received under paragraph (1), the Secretary shall establish final 
research priorities by notice in the Federal Register. 
(d) REVIEW OF RESEARCH PROPOSALS.— 
(1) ROLE OF COMMITTEE.—On receipt of an application submit-
ted under section 1644(b) for research, the Secretary shall refer 
the research proposal contained in such application to the 
committee established by this section for its review. 
(2) PEER REVIEW.—To assist the committee in its deliberations, 
the committee shall establish peer review panels to review the 
scientific and technical merits of research proposals. The 
committee sheill seek the widest participation of qualified sci-
entists and public health professionals in such panels. The peer 
review panels shall report their findings and recommendations 
to the committee. 
(3) CONSULTATION AND COORDINATION.—Both the committee 
and the peer review panels shall consult and coordinate with 
other appropriate Federal advisory committees. 
(4) RECOMMENDATIONS.—After due consideration of the review 
panel comments, the committee shall recommend to the Sec-
retary which grants should be made under this subtitle. 
(e) BASIC AND APPLIED RESEARCH.—In reviewing research propos-
als received under subsection (d), the committee and the peer review 
panels shall identify both— 
(1) proposals for basic research, and 
(2) proposals for applied research, taking into consideration 
the practical application of the results of basic research and 
applied research. 
(f) REVIEW OF COMPLETED PROJECTS.—When a research project is 
completed, the grant recipient shall forward the results of the 
project to the committee for its review. The committee shall submit 
the results to the Secretary along with any recommendations or 
suggestions of the committee. 
(g) APPLICATION OF THE FEDERAL ADVISORY COMMITTEE ACT.—The 
Federal Advisory Committee Act (5 U.S.C. App.) shall not apply with 
respect to the committee or peer review panels established under 
this section. 
SEC. 1646. REPORTS TO CONGRESS. 
(a) REPORT ON IMPLEMENTATION.—Not later than one year after 
the date of the enactment of this Act, the Secretary of Agriculture 
shall submit to the Committee on Agriculture of the House of 
Representatives and to the Committee on Agriculture, Nutrition, 
and Forestry of the Senate a report on the implementation of this 
subtitle. 
Federal 
Register, 
publication. 
Federal 
Register, 
publication. 
Reports. 
7 u s e 5873. 
104 STAT. 3754 
PUBLIC LAW 101-624—NOV. 28, 1990 
(b) REPORTS ON RESEARCH.—For each fiscal year in which funding 
is provided to carry out this subtitle, the Secretary shall report on 
the findings of the research for which grants were made during such 
fiscal year under this subtitle and include in such report any 
recommendations for implementation of the findings to the Commit-
tee on Agriculture of the House of Representatives and the Commit-
tee on Agriculture, Nutrition, and Forestry of the Senate. 
7 use 5874. 
SEC. 1647. AUTHORIZATION OF APPROPRIATIONS. 
(a) AUTHORIZATION.—There are authorized to be appropriated for 
each of the fiscal years 1991 through 1995 such sums as may be 
necessary to carry out this subtitle to be available until expended 
without fiscal year limitation. 
(b) ADMINISTRATIVE EXPENSES.—Not more than four percent of the 
amount appropriated for a fiscal year under subsection (a) may be 
expended by the Secretary of Agriculture for administrative costs 
incurred by the Secretary to carry out this subtitle. 
Subtitle F—Plant and Animal Pest and Disease 
Control Program 
7 use 5881. 
SEC. 1650. PLANT AND ANIMAL PEST AND DISEASE CONTROL PROGRAM. 
(a) INTEGRATED PEST MANAGEMENT RESEARCH.— 
Grant programs. 
(1) PRQGRAM REQUIRED.—The Secretary shall undertake or 
ccH^tracte^" 
assist in the conduct of research regarding integrated pest 
memagement, including research by grant or contract with 
Federal or State agencies or private industries, institutions, or 
organizations, as may be necessary to carry out this subtitle. 
Such research shall include integrated pest management 
research to benefit floriculture. 
(2) IMPLEMENTATION.—Implementation of integrated pest 
management strategies shall be conducted through the Exten-
sion Service. 
(b) EFFECT ON OTHER LAWS.—Nothing in this Act shall be con-
strued as limiting or repealing the authority of the Administrator of 
the Environmental Protection Agency to conduct research regarding 
integrated pest management under section 20(a) of the Federal 
Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. 136r(a)). 
(c) INTEGRATED PEST MANAGEMENT DEFINED.—For purposes of this 
section, the term "integrated pest management" means a pest or 
disease population management system that uses edl suitable tech-
niques, such as biological and cultural controls as well as pesticides, 
in a total production system to anticipate and prevent pests and 
diseases from reaching economically damaging levels. 
7 use 5882. 
SEC. 1651. PEST AND DISEASE CONTROL DATA BASE AND PESTICIDE 
RESISTANCE MONITORING. 
(a) DATA BASE REQUIRED.—The Secretary of Agriculture shall 
establish and maintain a data base on available materials and 
methods of pest and disease control available to agricultureil produc-
ers. The data beise required by this subsection shall include a listing 
(by crop, animal, and pest or disease) of information— 
(1) on currently available materials or methods of chemical, 
biological, cultural, or other means of controlling plant and 
animal pests and diseases; and 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3755 
(2) on the extent of pest or disease resist£ince developed under 
the monitoring required by subsection (d). 
(b) PRIORITIES FOR RESEARCH AND EXTENSION ACTIVITIES.—When 
the information in the data base established under subsection (a) 
indicates a shortage of available pest or disease control materials or 
methods to protect a particular crop or animal, the Secretary of 
Agriculture shall set priorities designed to overcome this shortage in 
its pest and disease control research and extension programs con-
ducted under this subtitle. 
(c) DISSEMINATION OF INFORMATION IN THE DATA BASE.—The 
Secretary of Agriculture shall— 
(1) make the information contained in the data base estab-
lished under subsection (a) available through the National Agri-
cultural Library; and 
(2) provide such information on an annual basis to the 
Administrator of the Environmental Protection Agency in sup-
port of the activities of that Agency under the Federal Insecti-
cide, Fungicide, and Rodenticide Act (7 U.S.C. 136 et seq.). 
(d) PESTICIDE RESISTANCE MONITORING.—The Secretary of Agri-
culture shall establish a national pesticide resistance monitoring 
program in accordance with the report developed by the Secretary 
under section 1437 of the Food Security Act of 1985 (Public Law 
99-198; 99 Stat. 1558). 
(e) PESTICIDE DEFINED.—For purposes of this section and section 
1652, the term "pesticide" shall have the same meaning as given 
that term in section 2(u) of the Federal Insecticide, Fungicide, and 
Rodenticide Act (7 U.S.C. 136(u)). 
SEC. 1652. RESEARCH ON EXOTIC PESTS. 
7 USC 5883. 
(a) PURPOSE.—The purpose of this section is to expand the re-
search capacity of the Department of Agriculture and State coopera-
tive institutions in the control and eradication of exotic pests. 
(b) RESEARCH PROGRAM.—The Secretary of Agriculture shall 
expand ongoing research and grant programs designed to control 
infestations of exotic pests. Expanded research and grant programs 
shall include— 
(1) improvement of existing methods of pest control, including 
sterile insect release, and development of safer pesticides, 
including pheremones; and 
(2) expansion of research capacity to develop new methods 
of pest control, including containment of pests for research 
purposes. 
SEC. 1653. STUDY OF THE BIOLOGY AND BEHAVIOR OF CHINCH BUGS, 
Education. 
INCLUDING FACTORS LEADING TO CROP LOSS AND DEVEL- 
7 USC 5884. 
OPMENT OF IMPROVED MANAGEMENT PRACTICES. 
The Secretary of Agriculture shall establish a research and edu-
cation program to study the biology and behavior of chinch bugs. 
The purpose of this study shall be— 
(1) to characterize the relationship between environmental 
and climatic factors and chinch bug outbreaks in an attempt to 
predict when these outbreaks occur; 
(2) to determine chinch bug dispersal habits, overwintering 
habitat preferences, and overwintering survival in native and 
introduced grasses; 
104 STAT. 3756 
PUBLIC LAW 101-624—NOV. 28, 1990 
(3) to describe the population dynamics of chinch bugs in 
small grain and noncrop grass hosts in the spring and assess 
)deld losses in small grain crop hosts; and 
(4) to investigate various aspects of chinch bug behavior 
(including 
host 
habitat 
preferences, 
oviposition, 
and 
pheromones) that may result in the development of novel 
management strategies. 
7 u s e 5885. 
SEC. 1654. AUTHORIZATION OF APPROPRIATIONS. 
There are authorized to be appropriated such sums as may be 
necessary to carry out this subtitle. 
Alternative 
Agricultural 
Subtitle G—Alternative Agricultural Research 
comSetiaTLion 
and Commercialization 
Act of 1990. 
forest^roducts 
^^^' ^^^^' ^^^^'^ 
TITLE, PURPOSES, AND DEFINITIONS. 
Rural areas. 
(a) SHORT TITLE.—This subtitle may be cited as the "Alternative 
7 UbC 5901. 
Agricultural Research and Commercialization Act of 1990". 
(b) PURPOSE.—Through the encouragement of and the provision of 
assistance to agricultural research, development, and commer-
cialization, it is the purpose of this subtitle— 
(1) to authorize research in modification of agricultural 
commodities, and associated research, in order to develop and 
produce marketable products other than food, feed, or tradi-
tional forest or fiber products; 
(2) to commercialize new nonfood, nonfeed uses for traditional 
and new agricultural commodities in order to create jobs, en-
hance the economic development of the rural economy, and 
diversify markets for raw agricultural and forestry products; 
(3) to encourage cooperative development and marketing ef-
forts among manufacturers, financiers, universities, and private 
and government laboratories in order to assist the commer-
cialization of new nonfood, nonfeed uses for agricultural and 
forestry products; 
(4) to direct, to the maximum extent possible, research and 
commercialization 
efforts 
toward the production of new 
nonfood, nonfeed products from agricultural commodities that 
can be raised by family-sized agricultural producers; and 
(5) to foster economic development in rural areas of the 
United States through the introduction of new nonfood, nonfeed 
products obtained from agricultural commodities. 
(c) DEFINITIONS.—For purposes of this subtitle: 
(1) The term "agricultural commodity" means a plant or 
animal species (including a species propagated or raised in a 
controlled environment or a tree species) and the products 
derived from that species. 
(2) The term "alternative agricultural product" means a new 
use, application, or material that— 
(A) is derived from an agricultural commodity; and 
(B) is not in widespread commercial use and is not ex-
pected to significantly displace a use, application, or mate-
rial derived from an agricultural commodity that already is 
in widespread commercial use. 
(3) The term "Board" means the Alternative Agricultural 
Research and Commercialization Board. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3757 
(4) The term "Center" means the Alternative Agricultural 
R^earch and Commercialization Center. 
(5) The term "commercialization" or "commercialize" in-
cludes— 
(A) activities associated with the development of alter-
native agricultural products or industrial plants; 
(B) the application of technology and techniques to the 
development of industrial products and alternative agricul-
tural products; and 
(C) the market development of new nonfood, nonfeed uses 
of new and traditional agricultural commodities and proc-
esses that will lead to the creation of goods and services 
that may be marketed for profit. 
(6) The term "Fund" means the Alternative Agricultural 
Research and Commercialization Revolving Fund. 
(7) The term "host institution" means an existing entity that 
is located in the region that is— 
(A) a university or other institution of higher education; 
(B) a Department of Agriculture laboratory; 
(C) a State agricultural experiment station; 
(D) a State cooperative extension service facility; or 
(E) another organization that is involved in the develop-
ment or commercialization of new nonfood, nonfeed uses for 
agricultural commodities, or is involved in rural economic 
development. 
(8) The term "new nonfood, nonfeed product development" 
meeins targeted research, including fundamental and applied 
research, concerning— 
(A) the production 
and processing of agricultural 
commodities for the purposes of developing new nonfood, 
nonfeed products; 
(B) the uses of new nonfood, nonfeed products; and 
(C) steps necessary to make a nonfood, nonfeed product 
available for the marketplace. 
(9) The term "new nonfood, nonfeed product" means an item 
that is primarily not a food, feed, or traditional forest or fiber 
product, including an item that exists but is not commercially 
available from an agricultural commodity. 
(10) The term "nonprofit organization" means an organiza-
tion that is— 
(A) described in section 501(c) of the Internal Revenue 
Code of 1986; and 
' 
(B) exempt from taxation under section 501(a) of such 
Code. 
(11) The term "Secretary" means the Secretary of Agri-
culture. 
(12) The term "traditional forest or fiber product" means a 
forest or fiber product that is derived from forest or agricultural 
materials and does not have substantial new properties. 
SEC. 1658. ALTERNATIVE AGRICULTURAL RESEARCH AND COMMER- 7 USC 5902. 
CIALIZATION CENTER 
(a) EsTABUSHMENT.—The Secretary of Agriculture shall establish 
an Alternative Agricultural Research and 
Commercialization 
Center to carry out the purpose of this subtitle. The Center shall be 
operated as an independent entity within the Department of Agri-
104 STAT. 3758 
PUBLIC LAW 101-624—NOV. 28, 1990 
culture under the general supervision and policy control of the 
Secretary. 
(b) FUNCTIONS.—The Center shall have the authority to— 
(1) make grants to, and enter into cooperative agreements and 
contracts with, eligible applicants for research, development, 
and demonstration projects in accordance with section 1660; 
(2) make loans and interest subsidy pa3rments and invest 
venture capital in accordance with section 1661; 
(3) collect and disseminate information about State, regional, 
and local commercialization projects; 
(4) search for new nonfood, nonfeed products that may be 
produced from agricultural commodities and for processes to 
produce such products; 
(5) administer, maintain, and dispense funds from the Alter-
native Agricultural Research and Commercialization Revolving 
Fund to facilitate the conduct of activities under this subtitle; 
and 
(6) engage in other activities incident to carrjdng out its 
functions. 
(c) DIRECTOR.—The Center shall be headed by a Director, who 
shall be appointed by the Board and approved by the Secretary of 
Agriculture. The Director shall receive basic pay at the rate pro-
vided for level IV of the Executive Schedule under section 5315 of 
title 5, United States Code. The Director shall be appointed for a 
term of five years, subject to removal by the Board before the end of 
that term. 
(d) RESPONSIBIUTIES OF THE DIRECTOR.—Subject to the general 
supervision of the Board, the Director shall be responsible for the 
overall management of the Center and the implementation of gen-
eral policies respecting the management and operation of programs 
and activities of the Center. In carr3dng out such responsibilities on 
behalf of the Center, the Director shall— 
(1) provide for appropriate peer review of— 
(A) applications for grants, contracts, and cooperative 
agreements submitted under section 1660 and applications 
for financial assistance submitted under section 1661; 
(B) the conduct of research for which assistance is pro-
vided by the Center; and 
(C) research findings or reports resulting from grants, 
contracts, and cooperative agreements administered by the 
Center as the Board determines necessary; 
(2) require, where appropriate, licensing and patent agree-
ments, copyright fees, royalties, or other fee arrangements on 
the sales of products, new uses, applications technologies, or 
processes developed through assistance provided through a 
grant made, contract or cooperative agreement entered into, or 
other assistance provided, under this subtitle. 
(3) take appropriate action to ensure that all channels for the 
dissemination and exchange of agricultural products and proc-
esses research are maintained between the Center and other 
agricultural, scientific, and business entities; and 
(e) STAFF.—Upon the request of the Director, the Secretary may 
detail, on a reimbursable basis, any of the personnel of the Etepart-
ment of Agriculture to assist the Director in carr3dng out the duties 
of the Director. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3759 
(f) EXPERTS AND CONSULTANTS.—The Director may procure tem-
porary and intermittent services under section 3109(b) of title 5, 
United States Code. 
SEC. 1659. ALTERNATIVE AGRICULTURAL RESEARCH AND COMMER- 7 USC 5903. 
CIALIZATION BOARD. 
(a) EsTABUSHMENT OF BoARD.—The Secretary shall establish the 
Alternative Agricultural Research and Commercialization Board. 
(b) MEMBERS.—The Board shall consist of nine members appointed 
by the Secretary as follows: 
(1) One member who shall be an employee of the Department 
of Agriculture. 
(2) Four members, of whom— 
(A) at least one shedl be a representative of the leading 
scientific disciplines relevant to the activities of the Center; 
(B) at least one shall be a producer or processor of agricul-
tural commodities; and 
(C) at least one shall be a person who is privately engeiged 
in the commercialization of new nonfood, nonfeed products 
from agricultural commodities. 
(3) Two members who— 
(A) have expertise in areas of applied research relating to 
the development or commercialization of new nonfood, 
nonfeed products; and 
(B) shall be appointed from a group of at least four 
persons nominated by the Director of the National Science 
Foundation if such nominations are made within 60 days 
after the date a vacancy occurs. 
(4) Two members who— 
(A) have expertise in financial and managerial matters; 
and 
(B) shall be appointed from a group of at least four 
persons nominated by the Secretary of Commerce if such 
nominations are made within 60 days Eifter the date a 
vacancy occurs. 
(c) RESPONSIBIUTIES.—The Board shall— 
(1) be responsible for the general supervision and policy con-
trol of the Center and Regional Centers; 
(2) determine (in consultation with the advisory council ap-
pointed under section 1661 and those Regional Centers estab-
lished under section 1663) high priority commercialization areas 
to receive assistance under that section; 
(3) review any grant, contract, or cooperative agreement to be 
made by the Center under section 1660 and any financial 
assistance to be provided under section 1661; 
(4) make the final decision, by majority vote, on whether and 
how to provide assistance to an applicant; 
(5) establish program policy, objectives, research and develop-
ment, and commercialization priorities to implement this sub-
title, through a process of public hearings to be initiated as soon 
as practicable after the establishment of the Board; and 
(6) using the results of such hearings and other information 
and data collected under paragraph (5), develop and establish a 
budget plan and a long-term operating plan to implement this 
subtitle. 
(d) MEETINGS.—The Board shall meet at the call of the chair-
person or at the request of the Director, but at least three times 
104 STAT. 3760 
PUBLIC LAW 101-624—NOV. 28, 1990 
each fiscal year. The location of the meetings of the Board shall be 
subject to the approval of the Director. A quorum of the Board shall 
consist of a majority of the members of the Board. The decisions of 
the Board shall be made by majority vote. 
(e) TERM; VACANCIES.—The term of office of a member of the 
Board shall be four years, except that the members initially ap-
pointed shall be appointed to serve staggered terms. A member 
appointed to fill a vacancy for an unexpired term may be appointed 
only for the remainder of such term. A vacancy on the Board shall 
be filled in the same manner as the original appointment. 
(f) CHAIRPERSON.—The members of the Board shall select a chair-
person from among the members. The term of office of the chair-
person shall be two years. The member appointed under subsection 
(b)(1) may not serve as chairperson. 
(g) COMMITTEES.—The Board may establish one or more temporary 
committees with agricultural, scientific, technical, or other exper-
tise, whose duties shall be to provide information, analysis, and 
recommendations, at the request and direction of the Board, on 
scientific, technological, policy, and other matters, as determined 
necessary by the Board. 
(h) COMPENSATION.—Members of the Board who are officers or 
employees of the United States shall not receive any additional 
compensation by reason of service on the Board. Other members of 
the Board shall receive, for each day (including travel time) they are 
engaged in the performance of the functions of the Board, compensa-
tion at a rate not to exceed the daily equivalent of the annual rate in 
effect for grade GS-18 of the General Schedule. All members of the 
Board shall be reimbursed for travel, subsistence, and other nec-
essary expenses incurred by them in the performance of their 
duties. 
(i) RESTRICTIONS.— 
(1) CONFLICT OF INTEREST.—Except as provided in paragraph 
(3), no member of the Board shall vote on any matter respecting 
any application, contract, claim, or other particular matter 
pending before the Center, in which, to the knowledge of the 
member, such member, spouse or child of such member, partner 
or organization in which such member is serving as officer, 
director, trustee, partner, or employee, or any person or 
organization with whom such member is negotiating or has any 
arrangement concerning prospective employment, has a finan-
cial interest. 
(2) VIOLATIONS.—Action by a member of the Board that is 
contrary to the prohibition contained in paragraph (1) shall be 
cause for removal of such member, but shall not impair or 
otherwise affect the validity of any otherwise lawful action by 
the Center in which the member or officer participated. 
(3) EXCEPTIONS.—The prohibitions contained in paragraph (1) 
shall not apply if a member of the Board advises the Board of 
the nature of the particular matter in which such member 
proposes to participate in, and if such member makes a full 
disclosure of such financial interest, prior to any participation, 
and the Board determines, by majority vote, that the financial 
interest is too remote or too inconsequential to affect the integ-
rity of such member's services to the Center in that matter. The 
member involved shall not participate in such determination. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3761 
(j) AUTHORITY OF THE SECRETARY.—Any final decision made under 
subsection (c) may be vetoed by the Secretary, and the Secretary 
shall inform the Board of the reasons for such veto. 
SEC. 1660. RESEARCH AND DEVELOPMENT GRANTS, CONTRACTS, AND 7 USC 5904. 
AGREEMENTS. 
(a) ELIGIBIUTY.—All public and private educational institutions, 
other public and private research institutions and organizations, 
Federal agencies, and individuals shall be eligible to receive a grant 
from, or enter into a contract or cooperative agreement with, the 
Center for a research, development, or demonstration project, as 
provided in this section. 
(b) COMPETITIVE BASIS FOR AWARDS.—Grants made, and contracts 
and cooperative agreements entered into, under this section shall be 
selected on a competitive basis on the recommendation of a peer 
review system to be established by the Center. Such system shall 
contain peer review expertise in commercial production, product 
development, processing, and marketing of agricultural commodities 
as well as in scientific research. 
(c) SELECTION CRITERIA.—The Board may select a research, devel-
opment, or demonstration project to receive a grant, contract, or 
cooperative agreement under this section based on the likelihood 
that the project will result in creating or improving economically 
viable commercial nonfood, nonfeed products, applications, proc-
esses, or technologies that involve the use of raw or processed 
agricultural commodities. The criteria to be considered may include 
the following: 
(1) the prospect of developing technologies that could make it 
possible to use or modify existing agricultural commodities to 
provide an economically viable quantity of new nonfood, 
nonfeed products; 
(2) the potential market size of the new nonfood, nonfeed 
product, the likely time period needed to bring the product into 
the stream of commerce for general use, and the likely avail-
ability of the agricultural commodity used to produce the prod-
uct; 
(3) the potential for job creation in an economically distressed 
rural area; 
(4) the anticipated State or local participation; 
(5) the anticipated financial participation of private entities; 
(6) the likely impact on reducing Federal crop subsidies and 
other Federgil agricultural assistance program costs; 
(7) the unavailability of adequate funding from other sources; 
(8) the likely positive impact on resource conservation and the 
environment; and 
(9) the likely positive effect of helping family-sized farmers 
and rural communities near the affected agricultural and for-
ested areas. 
(d) SET-ASIDE OF FUNDS FOR CERTAIN PROJECTS.— 
(1) IN GENERAL.—Not less than two-thirds of the funds obli-
gated each fiscal year for grants, contracts, and cooperative 
agreements under this section shall be awarded only for re-
search, development, and demonstration projects for which the 
applicant— 
(A) has committed substantial funding and support from 
its own resources; and 
104 STAT. 3762 
PUBLIC LAW 101-624—NOV. 28, 1990 
(B) has entered into a cooperative agreement or other 
contractual arrangement with a commercial company 
domiciled in the United States that commits such company 
to— 
(i) provide funds for at least 20 percent of the total 
cost of such project; and 
(ii) engage in commercial production and sale of the 
marketable products, processes, uses, applications, or 
technologies developed through the project, under 
appropriate licensing, royalty, or other agreements. 
(2) ANIMAL SOURCES.—Not more than 25 percent of the funds 
obligated each fiscal year for grants, contracts, and cooperative 
agreements under this section shall be awarded only for projects 
concerning new nonfood, nonfeed products derived from animal 
sources. 
(e) LIMITATION ON FUNDS PROVIDED.—Funds committed by 
the 
Center for any project under a grant, contract, or cooperative agree-
ment under this section shall in no case exceed two-thirds of the 
total cost of the project. 
(f) PREFERENCE.—In selecting projects to receive funds, the Center 
may give preference to those projects for which the ratio of Center 
funds to non-Center funds would be lowest. 
7 use 5905. 
SEC. 1661. COMMERCIALIZATION ASSISTANCE. 
(a) ASSISTANCE AUTHORIZED.—The Center, at the discretion of the 
Board, may provide to entities described in subsection (b) for projects 
commercializing new nonfood, nonfeed products using agricultural 
commodities, financial assistance in the form of— 
(1) loans made or insured by the Center; 
(2) interest subsidy payments made by the Center (pursuant 
to an agreement between the Center, the lender, and the bor-
rower) to the lender in amounts determined pursuant to the 
agreement; 
(3) venture capital invested by the Center in the form of a 
convertible debenture; and 
(4) repayable grants that are matched by private or local 
public funds and that are repaid as agreed in a contract 
between the Center and the entity. 
(b) EuGiBLE ENTITIES.—To obtain financial Eissistance for commer-
cialization of nonfood, nonfeed products from the Center, an entity 
shall be a university or other institution of higher education, a 
nonprofit organization, a cooperative, or a business concern. 
(c) ADVISORY COUNCIL.—The Board shall appoint an Advisory 
Council to advise the Board and Regional Centers concerning all 
applications for assistance submitted under this section. The conflict 
of interest provisions of subsection (i) of section 1659 shall apply to 
the Advisory Council. In appointing members of the Advisory Coun-
cil, the Board shall ensure regional participation on the Advisory 
Council. The Advisory Council shall— 
(1) review (or coordinate the review of) the technical, 
engineering, financial, and managerial soundness and market-
ing potential of the applications; 
(2) by majority vote, msike a nonbinding recommendation on 
each application submitted under this section; 
(3) monitor the progress of ongoing projects and provide tech-
nical and business counseling as needed; 
(4) monitor the operation of the Regional Centers; and 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3763 
(5) provide technical and business counseling to entities that 
are not seeking financial assistance from the Center, but which 
are engaged in commercializing nonfood, nonfeed uses of agri-
cultural commodities. 
(d) APPLICATION REQUIREMENTS.— 
(1) FILED WITH DIRECTOR.—To obtain financial assistance from 
the Center under this section, an eligible entity shall file an 
application with the Director. 
(2) CONTENTS.—An application submitted to the Director 
under paragraph (1) shall— 
(A) describe the proposal of the entity for the commer-
cialization of a new product consistent with this section, 
including documentation that such proposal is— 
(i) scientifically sound; 
(ii) technologically feasible; and 
(iii) marketable; 
(B) provide documentation that adequate private sector 
funding is not available, but that the applicant has the 
ability to obtain matching funds from the public or private 
sectors; 
(C) provide documentation that the applicant has in-
vested in the project a significant amount of the applicant's 
own resources, including time and money; 
(D) provide documentation that the product or process 
has broad application and has the potential to be commer-
cially viable without continual assistance; 
(E) provide documentation that the proposal has broad 
participation by representatives of the public sector, the 
financial community, the private business community. 
State and loced governments, educational institutions, the 
farm community, the science and engineering communities; 
(F) provide documentation that an established relation-
ship exists between the applicant and other entities to give 
the applicant access to private business assistance; 
(G) provide assurances of legal compliance by the ap-
plicant with the terms and conditions of the receipt of 
assistance under this section; and 
(H) provide assurances that the project will result in the 
creation of new jobs in rural communities. 
(e) PRIORITIES.—The Board shall give priority to— 
(1) applications that shall create jobs in economically dis-
tressed rural areas; 
(2) applications that have State or local government financial 
participation; and 
(3) applications that have private financial participation. 
(f) ADDITIONAL CRITERIA.—The Board shall establish additional 
criteria for use in selecting among equivalent applications. Such 
criteria shall emphasize— 
(1) the quantity and quality of jobs that are likely to be 
created in rural communities; 
(2) the amount of the financial participation by State or local 
governments or private entities; 
(3) the qualifications of the maneigement to be used in the 
project; 
(4) the potential market demand for the potential product to 
be marketed proportional to the financial assistance requested; 
and 
104 STAT. 3764 
PUBLIC LAW 101-624—NOV. 28, 1990 
(5) the likely level of returns to the Fund and the items 
described in paragraphs (2), (6), (8), and (9) of section 1660(c). 
7 use 5906. 
SEC. 1662. GENERAL RULES REGARDING THE PROVISION OF ASSISTANCE. 
Federal 
(a) NOTICE OF RECEIPT OF APPLICATIONS.—Not later than 30 days 
^ublic^tion 
before the start of each period established by the Board for receipt of 
pu 1 a ion. 
applications for financial assistance under section 1660 or 1661, the 
Board shall publish in the Federal Register a notice that it will 
receive such applications. 
(b) MONITORING.—The Board shall monitor the progress of 
projects that receive financial assistance under this subtitle. Such 
monitoring may include on-site reviews by representatives of the 
Board, a Regional Center, or the Advisory Council, the requirement 
of written reports by recipients of assistance, and supportive busi-
ness and technical counseling as needed by the recipient. The Board 
may use the Advisory Council appointed under section 1661 to assist 
in such monitoring. 
(c) AUDITING AND ACCOUNTABILITY.— 
(1) REQUIRED.—The Board shall establish a thorough and 
effective system of auditing and accountability to ensure that 
funds paid under section 1660 or 1661 are used by recipients 
only for the purposes for which those funds are provided by the 
Center. 
(2) DEMONSTRATED COMPLIANCE.—The Board may require that 
recipients of financial assistance demonstrate that the use of 
financial assistance is in compliance with the agreement by 
which that assistance is provided. 
(d) INFORMATION EXEMPT FROM DISCLOSURE.—With respect 
to 
research, 
development, 
demonstration, 
or 
commercialization 
projects carried out with the participation of private research 
institutions or commercial companies, information received by the 
Center incident thereto shall be exempt from disclosure under 
section 552 of title 5, United States Code, and shall not be made 
available publicly except— 
(1) with the approval of the person providing the information; 
or 
(2) in a judicial or administrative proceeding in which such 
information is subject to protective order. 
(e) OVERHEAD AND ADMINISTRATIVE COSTS.—The Board shall 
require that applications or responses to requests for proposals 
issued by the Center for grants, contracts, or cooperative agree-
ments include detailed estimates of project overhead and adminis-
trative costs. In selecting such applications or proposals for awards, 
the Center shall give preference to those with the lowest effective 
costs. 
(f) PROHIBITION ON CERTAIN USES OF ASSISTANCE.—No grant may 
be awarded, or contract or cooperative agreement entered into 
under this subtitle, for the acquisition or construction of a building 
or a facility. 
(g) REPORTS.— 
(1) PREPARATION.—As soon as practicable after the end of 
each fiscal year, the Board shall prepare and submit to the 
Secretary a report on the activities, progress, and accomplish-
ments of the Center during such fiscal year. The report shall 
include— 
(A) a description of the progress, activities, and accom-
plishments of the Center during that fiscal year and the 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3765 
expenditures by the Center for its information and other 
service activities; and 
(B) a copy of the operating plan prepared by the Board 
under section 1659(cX6). 
(2) TRANSMITTAL.—The Secretary shall transmit each report 
received under paragraph (1) to the President and Congress not 
later than 30 days after the date on which the Secretary 
receives the report. 
SEC. 1663. REGIONAL CENTERS. 
7 USC 5907. 
(a) EJSTABUSHMENT.— 
(1) REQUIRED.—Except as provided in paragraph (2), the Board 
shall establish not less than two nor more than six Regionsd 
Centers to carry out the activities specified in this section and 
such other activities as the Board shall from time to time 
specify. 
(2) EXCEPTION.—A Regional Center may not be established or 
operated in a fiscal year unless at least $5,000,000 has been 
appropriated for that fiscal year to carry out this subtitle. 
(b) METHOD OF ESTABUSHMENT.— 
(1) REGIONAL BASIS.—Each Regional Center established under 
this section shall be located at a host institution. The Regional 
Centers shall be established in different States to reflect the 
different regional climatic conditions and rural economic 
stresses in the United States. 
(2) COMPETITION.—An organization that desires to be selected 
as a host institution for a Regional Center shall submit an 
application to the Board. The Board shall determine the loca-
tion of the Regional Centers based on a competitive review of 
the contents of such applications and shall consider the ability 
of the applicant to carry out the activities specified in this 
section. 
(c) MATCHING OF FUNDS.— 
(1) ASSURANCES OF APPLICANTS.—Each institution submitting 
an application for a Regional Center under this section shall 
provide assurances— 
(A) that adequate funds or in-kind support (including 
office space, equipment and staff support) shall be provided 
to match the amount of funds used for administrative costs 
that are provided by the Federal Government under this 
subtitle; 
(B) that the institution is qualified to carry out the 
activities required of a Regional Center; and 
(C) concerning such other matters as the Board deter-
mines to be appropriate. 
(2) CONSORTIUM.—The matching funds required under para-
graph (1) may be provided by a consortia that may include the 
host institution and other public or private entities existing 
within various regions of the United States, including State and 
local governments, entities created by State and local govern-
ments, charitable organizations, public and private universities 
and other institutions of higher education, cooperatives, and 
economic development organizations. 
(d) DIRECTOR.—Each Regional Center shall be headed by a full-
time Regional Director who shall— 
(1) be selected by the Board; and 
104 STAT. 3766 
PUBLIC LAW 101-624—NOV. 28, 1990 
(2) have a scientific or engineering background or have experience 
in the development of new products or processes in the public or 
private sector. 
(e) ACTIVITIES.—Each Regional Center shall— 
(1) encourage interaction among the private and Federal 
laboratories, National Science Foundation centers. Department 
of Agriculture research programs, other Federal resources. 
State and local regional economic development programs, 
universities, colleges, the private sector, and the 
financial 
community, for the purpose of evaluating sind commercializing 
new nonfood, nonfeed uses of agricultural commodities; 
(2) identify broad areas where commercialization of new 
nonfood, nonfeed products and processes can contribute to eco-
nomic growth in rural areas of the United States, through the 
development of new nonfood, nonfeed uses for agricultural 
commodities by private companies and businesses; 
(3) provide technical assistance and related business and 
financial counseling for small domestic businesses to commer-
cialize new nonfood, nonfeed uses of agricultural commodities; 
(4) identify new nonfood, nonfeed products and processes that 
are worthy of financial assistance; 
(5) make use of existing programs in scientific, engineering, 
technical, and management education that will support the 
accelerated commercialization of new nonfood, nonfeed products 
and processes using agricultural commodities; 
(6) advise the Board on the viability of specific applications 
submitted for financial assistance £uid on the type of assistance, 
if any, to be provided; 
(7) coordinate their activities with the Small Business Devel-
opment Centers; and 
fi 
(8) coordinEite their activities with the Center. 
(f) REVIEW OF PROPOSALS FOR ASSISTANCE.— 
(1) SUBMISSION TO REGIONAL CENTER.—If a Regional Center is 
established that includes the area in which a person applying 
for assistance under this subtitle is located, that person shall 
submit the application to the Regional Center for review. 
(2) REVIEW.—The Directors of the Regiongil Centers shall 
work in consultation with the Advisory Council appointed 
under section 1661(c) to obtain peer review and evaluation of 
applications submitted to the Regional Centers. 
(3) ROLE OF ADVISORY COUNCIL.—The Advisory Council shall 
review applications submitted to the Regional Centers. The 
Advisory Council shall, by majority vote, make a nonbinding 
recommendation on each proposal to the appropriate Regionsd 
Director. 
(4) RECOMMENDATION.—The Regional Director, after consider-
ation of the Advisory Council's recommendation and based on 
the comments of the reviewers, shall make and submit a rec-
ommendation to the Board along with the recommendation of 
the Advisory Council. A recommendation submitted by a Re-
gionsd Director or the Advisory Council shall not be binding on 
the Board. 
7 u s e 5908. 
SEC. 1664. ALTERNATIVE AGRICULTURAL RESEARCH AND COMMER-
CIALIZATION REVOLVING FUND. 
(a) ESTABLISHMENT.—There is established in the Treasury of the 
United States a revolving fund to be known as the Alternative 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3767 
Agricultural Research and Commercialization Revolving Fund. The 
Fund shall be available to the Center, without fiscal year limitation, 
to carry out the authorized programs and activities of the Center 
under this subtitle. 
(b) CONTENTS OF FUND.—There shall be deposited in the Fund— 
(1) such amounts as may be appropriated or transferred to 
support the programs and activities of the Center; 
(2) payments received from any source for products, services, 
or property furnished in connection with the activities of the 
Center; 
(3) fees and royalties collected by the Center from licensing or 
other arrangements relating to commercialization of products 
developed through projects funded in whole or part by grants, 
contracts, or cooperative agreements executed by the Center; 
(4) donations or contributions accepted by the Center to sup-
port authorized programs and activities; and 
(5) any other funds acquired by the Center. 
(c) FUNDING ALLOCATIONS.—Funding of projects and activities 
under this subtitle shall be subject to the following restrictions: 
(1) Of the total amount of funds made available for a fiscal 
year under this subtitle— 
(A) not more than 5 percent may be set aside to be used 
for authorized administrative expenses of the Center in 
carrying out its functions; 
(B) not more than 5 percent may be set aside to be used 
< ' 
for information collection and dissemination and tech-
nology transfer programs authorized in this subtitle; and 
(C) not less than 85 percent shall be set aside to be 
awarded to qualified applicants who file project applica-
tions with, or respond to requests for proposals from, the 
Center under sections 1660 and 1661. 
(2) Any funds remaining uncommitted at the end of a fiscal 
year shall be credited to the Fund and added to the total 
program funds available to the Center for the next fiscal year. 
(d) TERMINATION OF THE FUND.—On expiration of the provisions of 
this subtitle, all assets (after pa3rment of all outstanding obligations) 
of the Fund shall revert to the general fund of the Treasury, 
(e) AUTHORIZATION OF APPROPRIATIONS,—There are authorized to 
be appropriated to the Fund— 
(1) $10,000,000 for fiscal year 1991; 
(2) $20,000,000 for fiscal year 1992; 
(3) $30,000,000 for fiscal year 1993; 
(4) $50,000,000 for fiscal year 1994; and 
(5) $75,000,000 for each of the fiscal years 1995 through 2000, 
Subtitle H—Miscellaneous Research Provisions 
SEC. 1668. BIOTECHNOLOGY RISK ASSESSMENT RESEARCH. 
7 USC 5921. 
(a) PURPOSE,—It is the purpose of this section to— 
(1) authorize and support environmental assessment research 
to the extent necessary to help address general concerns about 
environmental effects of biotechnology; and 
(2) authorize research to help regulators develop policies, as 
soon as practicable,, concerning the introduction into the 
environment of such technology. 
104 STAT. 3768 
PUBLIC LAW 101-624—NOV. 28, 1990 
(b) GRANT PROGRAM.—The Secretary of Agriculture shall establish 
a grant program within the Cooperative State Research Service and 
the Agricultural Research Service to provide the necessary funding 
for environmental assessment research concerning the introduction 
of genetically engineered organisms into the environment. 
(c) TYPES OF RESEARCH.—Tjrpes of research for which grants may 
be made under this section shall include the following: 
(1) Research designed to develop methods to physically and 
biologically contain genetically engineered animals, plants, and 
microorganisms once they are introduced into the environment. 
(2) Research designed to develop methods to monitor the 
dispersal of genetically engineered animals, plants, and micro-
organisms. 
(3) Research designed to further existing knowledge with 
respect to the rates and methods of gene transfer that may 
occur between genetically engineered organisms and related 
wild and agricultural organisms. 
(4) Other areas of research designed to further the purposes of 
this section. 
(d) EuGiBiUTY REQUIREMENTS.—Grants under this section shall 
be— 
(1) made on the basis of the quality of the proposed research 
project; and 
(2) available to any public or private research or educational 
institution or organization. 
(e) CONSULTATION.—In considering specific areas of research for 
funding under this section, the Secretary of Agriculture shall con-
sult with the Administrator of the Animal and Plant Health Inspec-
tion Service, the Office of Agricultural Biotechnology, and the Agri-
cultural Biotechnology Research Advisory Committee. 
(f) PROGRAM COORDINATION.—The Secretary of Agriculture shall 
coordinate research funded under this section with the Office of 
Research and Development of the Environmental Protection Agency 
in order to avoid duplication of research activities. 
(g) AUTHORIZATION OF APPROPRIATIONS.— 
(1) IN GENERAL.—There are authorized to be appropriated 
such sums as necessary to carry out this section. 
(2) WiTHOLDiNGS FROM BIOTECHNOLOGY OUTLAYS.—The Sec-
retary of Agriculture shall withhold from outlays of the Depart-
ment of Agriculture for research on biotechnology, as defined 
and determined by the Secretary, at legist one percent of such 
amount for the purpose of making grants under this section for 
research on biotechnology risk assessment. 
7 use 5922. 
SEC. 1669. GRADUATE SCHOOL OF THE DEPARTMENT OF AGRICULTURE. 
(a) TRAINING SERVICES.—Notwithstanding any other provision of 
law, the head of a Federal agency or major organizational unit 
within any agency, including agencies and offices within the Depart-
ment of Agriculture, may place an order (or enter into an agree-
ment) with the Graduate School of the Department of Agriculture 
under the provisions of section 1535 of title 31, United States Code, 
for training and other services incidental to the provision of such 
training. 
(b) G
r
O
O
D
S O
R SERVICES.—The Graduate School may obtain any 
goods or services necessary to the fulfillment of an order under 
subsection (a) or its obligations under such agreement without 
regard to the requirements o
f
— 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3769 
(1) the Federal Property and Administrative Services Act of 
1949 (40 U.S.C. 471 et seq.); or 
(2) any other law that prescribes procedures for the procure-
ment of property or services by £in executive agency, 
(c) AUDITS OF RECORDS.—The financial records of the Graduate 
School relating to orders or agreements under subsection (a) shall be 
made available to the Comptroller Greneral for purposes of conduct-
ing an audit. 
(d) DEFINITIONS.—For purposes of this section: 
(1) The term "Graduate School" means the Graduate School 
of the Department of Agriculture. 
(2) The term "training" has the meaning given that term in 
section 4101(4) of title 5, United States C!ode. 
SEC. 1670. LIVESTOCK PRODUCT SAFETY AND INSPECTION PROGRAM. 7 USC 5923. 
(a) ESTABLISHMENT.—The Assistant Secretary for Science and Edu-
cation, acting through the (Dooperative State Research Service spe-
cial grants program, may provide assistance to eligible entities to 
encourage and assist efforts made by research institutions to 
improve the efficiency and effectiveness of safety and inspection 
systems for livestock products. 
Ot)) ELIGIBLE ENTITIES.—To be eligible to receive assistance under 
this section an entity shall be a land-grant college or university or 
any other college or university which demonstrates capability in the 
agriculture sciences, an individual research institution, or a consor-
tia of such institutions. 
(c) CONTRIBUTION BY ENTITY.— 
(1) REQUIREMENT.—To be eligible to receive assistance under 
this section, an entity shall agree that such entity will, with 
respect to the costs to be incurred by the entity in conducting 
the research for which the assistance is provided, make avail-
able (directly or through donations) non-Federal contributions 
toward such costs in an amount equal to 50 percent of such 
costs. 
(2) NON-FEDERAL CONTRIBUTIONS.—Non-Federsil contributions 
required under paragraph (1) may be in cash or in kind, fairly 
evaluated, including plant, equipment, or services. Amounte 
provided by the Federal Government, or services assisted or 
subsidized to any significant extent by the Federal Government, 
may not be included in determining the amount of such non-
Federal contributions. 
(d) ADMINISTRATION.—In providing assistance under this section, 
the Assistant Secretary for Science and Education shall to the 
extent practicable ensure that the amount of such assistance is 
provided equally to eligible entities representing the beef, pork, 
lamb, poultry, and acquaculture industries. 
(e) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 
be appropriated to carry out this section, such sums as necessary for 
each of the fiscal years 1991 through 1995. 
SEC. 1671. PLANT GENOME MAPPING PROGRAM. 
7 USC 5924. 
(a) PROGRAM REQUIRED.—The Secretary of Agriculture (herein-
after in this section referred to as the "Secretary") shall conduct a 
research program for the purpose of— 
(1) supporting basic and applied research and technology 
development in the area of plant genome structure and 
function; 
104 STAT. 3770 
PUBLIC LAW 101-624—NOV. 28, 1990 
(2) providing United States leadership in biotechnology; and 
(3) providing crop varieties that may be cultivated profitably 
without negatively impacting the environment. 
G)) COMPETITIVE GRANTS.—The Secretary may make competitive 
grants, for periods not to exceed five years, to State agricultural 
experiment stations, all colleges and universities, other research 
institutions and organizations. Federal agencies, private organiza-
tions or corporations, and individuals for research projects in the 
research areas identified in subsection (c). 
(c) RESEARCH AREAS.—Grants available under subsection (b) shall 
be awarded in the following research areas: 
(1) Construction of plant genome maps. 
(2) Identification, characterization, transfer, and expression of 
genes of agricultural importance. 
(3) Technology development in the areas of plant genome 
mapping, sequencing, gene transfer, and data management. 
(4) Research on microorganisms associated with plants, such 
as plant pathogens and plant S3nnbionts. 
(d) PLAN FOR MAKING GRANTS.—Not later than 90 days after the 
date of the enactment of this Act, the Secretary shall submit to the 
Congress a detailed plan for awarding grants under this section. 
(e) COORDINATION OF EFFORTS.—The Secretary shall coordinate 
activities under this section with related activities sponsored by the 
National Science Foundation, the National Institutes of Health, the 
Department of Energy, and the Department of Commerce. 
Copyright. 
(f) PROPRIETARY INTERESTS.—The Secretary shall require (when 
the Secretary considers it to be appropriate) licensing and patent 
agreements, copyright fees, royalties, or other fee arrangements on 
the sales of products and new uses, applications, technologies, or 
processes developed through assistance provided under this section. 
(g) REPORTS.—The Secretary shall submit to the Congress an 
annual report describing the operations of the grant program au-
thorized by this section during the preceding fiscal year. 
(h) AUTHORIZATIONS OF APPROPRIATIONS.—There are authorized to 
be appropriated such sums as may be necessary to carry out this 
section. 
7 use 5925. 
SEC. 1672. SPECIALIZED RESEARCH PROGRAMS. 
(a) ANIMAL LEAN CONTENT RESEARCH.—The Secretary of Agri-
culture is encouraged to fund research for the development of 
technology which will ascertain the lean content of animal carcasses 
to be used for human consumption. 
(b) ETHANOL RESEARCH.—In order to further carry on and enhance 
needed ethanol research, the facility of the Agricultural Research 
Service located at Peoria, Illinois (authorized by section 202 of the 
Agricultural Adjustment Act of 1938 (7 U.S.C. 1292)), may enter into 
cooperative agreements, contracts, and the exchange of scientific 
information with the Department of Energy in the area of ethanol 
research. Such facility shall hereafter be referred to as the National 
Center for Agricultural Utilization Research, Agricultural Research 
Service, United States Department of Agriculture. 
(c) AFLATOXIN RESEARCH.—The Secretary of Agriculture shall con-
duct a research program for the purpose of determining the pres-
ence of aflatoxin in the food and feed chains. The research required 
under this subsection shall include research in the following areas: 
(A) The examination of agricultural commodities, products, 
and feeds for the presence and quantity of aflatoxin. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3771 
(B) The examination of human populations to assess the 
exposure level to aflatoxin. 
(C) The examination of safe levels of aflatoxin in the food and 
feed chains. 
(D) The development and assessment of control methods for 
aflatoxin, including methods to handle, store, detoxify, and 
dispose of Eiflatoxin-contaminated agricultural commodities, 
products, and feeds. 
(E) The development of effective methods of controlling the 
aflatoxin contamination of agricultural products in inter-
national trade when the level of such contamination exceeds an 
acceptable level, 
(F) The development of plants resistant to aflatoxin contami-
nation. 
(G) The improvement of sampling and analysis methods for 
aflatoxin. 
(H) The effect of aflatoxin on smimal disease through 
immunosuppression and interaction with other disease Eigents. 
(I) The economic consequences of aflatoxin contamination. 
(d) MESQUITE RESEARCH.— 
(1) RESEARCH REQUIRED.—The Secretary of Agriculture shall 
conduct a research program for the purpose of developing en-
hanced production methods and commercial uses of mesquite. 
(2) COMPETITIVE GRANTS.—The Secretary shall make competi-
tive grants, for periods not to exceed 5 years, to a State agricul-
tural experiment station, a college or university, or a 
consortium of such entities, for a research project in the re-
search areas identified in paragraph (3). 
(3) RESEARCH AREAS.—A grant available under paragraph (2) 
shall be awarded to an applicant to conduct research in— 
(A) the development of techniques to produce, from small-
diameter, short-length, or otherwise irregular mesquite 
logs, solid-wood products useful as flooring, furniture parts, 
turning blanks, and such other uses as may have potential 
economic value; 
(B) the development of management techniques designed 
to improve stands for quality lumber production from mes-
quite; £ind 
(C) such other methods of production, harvesting, process-
ing, and marketing that are designed to provide viable 
markets for mesquite and lead to the commercialization of 
mesquite as a cash crop. 
(4) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated $100,000 for each of the fiscal years 1991 
through 1995 to carry out this subsection. 
(e) PRICKLY PEAR RESEARCH.— 
(1) RESEARCH REQUIRED.—The Secretary of Agriculture shall 
conduct a research program for the purpose of investigating 
enhanced genetic selection and processing techniques of prickly 
pears. 
(2) COMPETITIVE GRANTS.—The Secretary shall make competi-
tive grants, for periods not to exceed 5 years, to a State agricul-
tural experiment station, a college or university, or a 
consortium of such entities, for research projects in the research 
areas identified in paragraph (3). 
(3) RESEARCH AREAS.—A grant available under paragraph (2) 
shall be awarded to an applicant to conduct research— 
Educational 
facilities. 
Educational 
facilities. 
39-194 O - 91 - 15 : QL 3 Part 5 
104 STAT. 3772 
PUBLIC LAW 101-624—NOV. 28, 1990 
Grant programs. 
Ck)lleges and 
universities. 
Grant programs. 
Small 
businesses. 
Appropriation 
authorization. 
(A) to investigate, through genetic selection, the develop-
ment of varieties of prickly pear with improved growth, 
freeze tolerance, and harvest characteristics; 
(B) to develop techniques to produce and process prickly 
pear as a food source; and 
(C) to continue to investigate the nutritional value and 
health benefits of prickly pears. 
(4) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated $100,000 for each of the fiscal years 1991 
through 1995 to carry out this subsection. 
(f) IMMUNOASSAY RESEARCH.— 
(1) RESEARCH REQUIRED.—The Secretary of Agriculture shall 
establish and carry out a program to make grants to colleges 
and universities for research relating to immunoassay used— 
(A) to detect agricultural pesticide residues on agricul-
tural commodities for human consumption; and 
(B) to diagnose animal and plant diseases. 
(2) PREFERENCE.—In making grants under this subsection, the 
Secretary may give preference to those colleges and universities 
that, as of the date of the enactment of this Act, are conducting 
research described in this subsection. 
(g) NICHE MARKET DEVELOPMENT.—The Secretary shall make re-
search and extension grants available for the development of agri-
cultural production and marketing systems that will service niche 
markets located in nearby metropolitan areas. In awarding such 
grants, the Secretary shall pay particular attention to areas— 
(1) with a high concentration of small farm operations; and 
(2) that experience difficulty in delivering products to market 
due to geographic isolation. 
(h) SCRAPIE RESEARCH.— 
(1) RESEARCH AUTHORIZED.—The Secretary of Agriculture may 
establish and carry out a program to conduct research on the 
disease of scrapie in sheep and goats, including research regard-
ing the following: 
(A) Methods for detecting infection of animals with 
scrapie before the animals become symptomatic. 
(B) Methods for treatment, prevention, and cure of 
scrapie. 
(C) Methods for controlling the spread of scrapie. 
(2) GRANTS AND CONTRACTS.—In carrying out a research pro-
gram established under this subsection, the Secretary may 
make grants to and contract with Federal, State, and local 
agencies and £iny other organizations that are experienced in 
research regarding animal diseases. 
(3) COORDINATION.—The Secretary shall coordinate the re-
search program established under this subsection with other 
research programs regarding encephalopathies, in particular 
research regarding bovine spongiform encephalopathy in cattle. 
(i) DEER TICK ECOLOGY AND RELATED RESEARCH.—There are 
au-
thorized to be appropriated $250,000 for each of the fiscal years 1991 
through 1995 to be used by the Agricultural Research Service to 
assist research in the field of population ecology of deer ticks and 
other insects and pests which transmit Lyme disease. 
(j) NEW COMMERCIAL PRODUCTS FROM NATURAL PLANT MATE-
RIALS.—The Secretary of Agriculture may— 
(1) conduct fundamental and applied research related to the 
development of new commercial products derived from natural 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3773 
plant materials for industrial, medical, £ind agricultural ap-
plications; and 
(2) participate with colleges and universities, other Federal 
agencies, and private sector entities in conducting such 
research, 
(k) ADMINISTRATIVE PROVISIONS.— 
(1) PEER REVIEW.—Except for research funded under subsec-
tion (i), research funded under this section shsdl be subject to 
peer review at such times as the Secretary considers necessary 
for the purpose of reviewing the progress and efficacy of the 
research and the justification and need for continued funding. 
(2) LIMITATION ON USE OF FUNDS.—Funds provided under this 
section may not be used for the planning, repair, rehabilitation, 
acquisition, or construction of a building or facility. 
(8) GENERAL ELIGIBILITY.—Unless otherwise specified in this Educational 
section. State agricultural experiment stations, all colleges and facilities. 
universities, other research institutions and organizations. Fed-
eral agencies, private organizations or corporations, and individ-
uals shall be eligible to participate in the programs established 
by this section. 
SEC. 1673. AGRICULTURAL TELECOMMUNICATIONS PROGRAM. 
7 USC 5926. 
(a) PURPOSE.—The program (hereafter referred to in this section 
as the "program") established under this section is intended to 
encourage the development and utilization of an agricultursd 
communications network to facilitate and to strengthen agricultursd 
extension, resident education and research, and domestic and inter-
national marketing of United States agricultursd commodities and 
products through a partnership between eligible institutions and the 
Department of Agriculture. The network will employ satellite and 
other telecommunications technology to disseminate and to share 
academic instruction, cooperative extension programming, agricul-
tural research, and marketing information. 
0)) OBJECTIVES.—The objectives of the program established under 
this section are— 
(1) to make optimal use of available resources for agricultural 
extension, resident education, and research by sharing re-
sources between participating institutions; 
(2) to improve the competitive position of United States agri-
culture in international markets by disseminating information 
to producers, processors, and researchers; 
(3) to train students for careers in agriculture and food 
industries; 
(4) to facilitate interaction among leading agricultural 
scientists; 
(5) to enhance the ability of United States agriculture to 
respond to environmental and food safety concerns; and 
(6) to identify new uses for farm commodities gmd to increase 
the demand for United States agricultural products in both 
domestic and foreign markets. 
(c) DEFINITIONS.—For purposes of this section— 
(1) The term "eligible institution" means an accredited 
institution of higher education determined by the Secretary to 
be able to meet the objectives identified in subsection (b). 
(2) The term "communications network" refers to television 
or cable television origination or distribution equipment, signal 
conversion 
equipment 
(including 
both 
modulators 
and 
104 STAT. 3774 
PUBLIC LAW 101-624—NOV. 28, 1990 
demodulators), computer hardware and software, programs or 
termineds, or related devices, used to process and exchange data 
through a telecommunications system in which signals are 
generated, modified, or prepared for transmission, or received, 
via telecommunications terminal equipment or via tele-
communications transmission. 
(3) The term "delivery" means the transmission and reception 
of programs by facilities that transmit, receive, or carry data 
between telecommunications terminal equipment at each end of 
a telecommunications circuit or path. 
(4) The term "facilities" includes microwave antennae, 
fiberoptic cables and repeaters, coaxial cables, communications 
satellite ground station complexes, copper cable electronic 
equipment associated with telecommunications transmission, 
and similar items as defined by the Secretary. 
(5) The term "satellite ground station complex" includes 
transmitters, receivers, and communications antennae at the 
Earth station site together with the interconnecting terrestrial 
transmission facilities (including cables, line, or microwave 
facilities) and modulating and demodulating equipment nec-
essary for processing traffic received from the terrestrial dis-
tribution system prior to transmission via satellite £ind the 
traffic received from the satellite prior to tremsfer to terrestrial 
distribution systems. 
(d) AUTHORIZATION OF ASSISTANCE TO EUGIBLE INSTITUTIONS.—(1) 
The Secretary shall establish a program, to be administered by the 
Assistant Secretary for Science and Bklucation, under which finan-
cial and technical £issistance may be provided to eligible institutions 
that participate in a network that distributes programs consistent 
with the objectives described in subsection (b). 
(2) The Secretary may approve all or part of any application 
submitted by an eligible institution if the proposed activity will 
contribute, directly or indirectly, to the purpose and objectives of the 
program established under this section. 
(3) As provided in subsection (f), applications for financial assist-
ance may include requests to fund program production or program 
delivery, or both. 
(e) PRIORITY.—The Secretary, in considering applications for 
assistance under this program, shall establish procedures to ensure 
a broad dissemination of programming, giving a preference to ap-
plications that— 
(1) are submitted by institutions affiliated with an established 
agricultural telecommunications network that distributes pro-
grams to a wide geographical area; or 
(2) demonstrate the need for such assistance, taking into 
consideration the relative needs of all applicants and the finan-
cial ability of the applicants to otherwise secure or create the 
telecommunications system. 
(f) APPUCATIONS FOR PROGRAM PRODUCTION AND DEUVERY.—(1) 
The Secretary shall consider applications for financial assistance for 
the production and delivery of programs or cooperative extension, 
academic instruction in agriculture, agricultural research, and 
other topics consistent with the objectives described in subsection 
(b). 
(2) Eligible institutions shall request assistance by submitting 
applications to the Assistant Secretary for Science and Education. 
Applications shall include— 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3775 
(A) a detailed description of the telecommunications network 
and programming proposed to be produced and delivered, 
including to whom the programming will be distributed, how 
the programming will contribute to achieving the objectives 
described in subsection (b), and the total cost of producing and 
delivering such programming; 
(B) the amount of assistance requested for the proposed pro-
gram authorized under this section and other sources of funding 
that will be used for the proposed program; and 
(C) an analysis of the costs and benefits of purchasing (or 
leasing) different types of facilities, equipment, components, 
hardware and software, or other items. 
(g) LIMITATIONS ON ASSISTANCE.—(1) The Secretary may provide 
funds totaling not more than 50 percent of the cost of a proposal for 
which an application is submitted under subsection (f). Notwith-
standing the preceding sentence, the Secretary may provide funds 
totaling up to 100 percent of the cost of such a proposal if the 
Secretary determines that an eligible institution would otherwise be 
unable to carry out the proposal. 
(2) The Secretary may allocate not more than 10 percent of the 
funds appropriated under this section for the acquisition and 
installation of telecommunications transmission facilities. 
(h) AUTHORIZATION OF APPROPRIATIONS.—For the purposes of im-
plementing the program established under this section, there are 
hereby authorized to be appropriated not more than $12,000,000 for 
each of the fiscal years 1991 through 1995. 
SEC. 1674. COMMISSION ON AGRICULTURAL RESEARCH FACILITIES. 
7 USC 5927. 
(a) DEFINITIONS.—For purposes of this section: 
(1) AGRICULTURAL RESEARCH FACILITY.—The term "agricul-
tural research facility" means a facility at which agricultural 
research is regularly carried out, or proposed to be carried out, 
and which is— 
(A) an existing Agricultural Research Service facility or a 
Forest Service facility; 
(B) an agricultural facility in the process of being planned 
or being constructed using Federal funding or a planned 
agricultural facility that will use Federal funding; or 
(C) any other facility under the jurisdiction of the Sec-
retary of Agriculture. 
(2) STUDY COMMISSION.—The term "Study Commission" means 
the Agriculture Research Facilities Planning and Closure Study 
Commission established under this section. 
(3) SECRETARY.—The term "Secretary" means the Secretary of 
Agriculture. 
Ot)) STUDY COMMISSION ESTABUSHED.—The Secretary shall estab-
lish an Agriculture Research Facilities Planning and Closure Study 
Commission to carry out the activities described in subsection (c). 
(c) GENERAL DUTIES.—The Study Commission shall— 
(1) review all currently operating and planned agricultural 
research facilities for research importance; 
(2) identify those agricultural research facilities that should 
be closed, realigned, consolidated, or modernized, in order to aid 
in carrying out the research agenda of the Secretary; 
(3) develop recommendations concerning agricultural re-
search facilities; and 
104 STAT. 3776 
PUBLIC LAW 101-624—NOV. 28, 1990 
(4) evaluate the agricultural research facilities acquisition 
and modernization system utilized by the Department of Agri-
culture and recommend improvements in such system. 
(d) ELEMENTS OF STUDY COMMISSION.— 
(1) MEMBERSHIP.—The Study Commission shall be composed 
of 14 members to be appointed not later than 60 days after the 
date of enactment of this Act, of which— 
(A) two members shall be appointed by the Secretary 
from among private citizens or employees of the Executive 
Branch; 
(B) three members shall be appointed by the Chairman of 
the Committee on Agriculture, Nutrition, and Forestry of 
the Senate; 
(C) three members shsdl be appointed by the Ranking 
Minority Member of the Committee on Agriculture, Nutri-
tion, and Forestry of the Senate; 
(D) three members shall be appointed by the Chairman of 
the Committee on Agriculture of the House of Representa-
tives; and 
(E) three members shsill be appointed by the Ranking 
Minority Member of the Committee on Agriculture of the 
House of Representatives. 
(2) VACANCIES.—A vacancy occurring on the Study Commis-
sion shall be filled in the same manner as that in which the 
original appointment was made. 
(3) COMPENSATION AND EXPENSES.— 
(A) COMPENSATION.—Members of the Study Commission 
who are not regular full-time employees of the United 
States Government shall, while attending meetings and 
conferences of the Study Commission or otherwise engaged 
in the business of the Study Commission (including travel 
time), be entitled to receive compensation at a rate fixed by 
the Secretary, but not exceeding the rate specified at the 
time of such service under GS-18 of the General Schedules 
established under section 5332 of title 5, United States 
Code. 
(B) EXPENSES.—While away from their homes or regular 
places of business on the business of the Study Commission, 
members of such Commission may be allowed travel ex-
penses, including per diem in lieu of subsistence, as is 
authorized under section 5703 of title 5, United States Code, 
for persons employed intermittently by the 
Federal 
Government. 
(4) CHAIRPERSON.—The Secretary shall designate a member of 
the Study Commission to serve as the Chairperson. 
(5) MEETINGS.—The Study Commission shall meet at the call 
of the Chairperson, of a majority of the members of the Study 
Commission, or at the call of the Secretary. 
(6) DIRECTOR AND STAFF.—The Chairperson of the Study 
Commission may appoint a Director of such Commission, and 
may request the detailing of the staff of Federal agencies to 
such Commission to assist it in carrjdng out its duties. The 
Chairperson may employ experts and consultants. 
(e) GENERAL POWERS.—The Study Commission shall have the 
power to meet and hold hearings, use the mails of the United States, 
and provide and acquire administrative support services. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3777 
(f) REPORT.—Not later than 240 days after the date of enactment 
of this Act, the Study Commission shall prepare and submit to the 
Secretary, the Committee on Agriculture and Appropriations of the 
House of Representatives and the Committee on Agriculture, Nutri-
tion, and Forestry and Appropriations of the Senate, a report 
concerning the findings and recommendations developed under 
subsection (c). 
(g) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 
be appropriated such sums as may be necessary to carry out this 
section. 
SEC. 1675. NATIONAL CENTERS FOR AGRICULTURAL PRODUCT QUALITY 7 USC 5928. 
RESEARCH. 
(a) PURPOSES.—The purposes of the national centers for agricul-
tural product quality research shall be to— 
(1) serve as regional or commodity specific agricultural prod-
uct quality research and education focal points involving one or 
more university and Federgd participants; 
(2) take advantage of opportunities, and establish linkages 
between universities and other entities with expertise, in basic 
biology and engineering, the development of new technology, 
the application of technolo^ to practice, and related quality 
assurance and regulatory activities; 
(3) develop and enhance explicit relationships (including the 
possible sharing of the cost of center operations) between the 
research and development community, the Department, and 
other Federal agencies, and with all aspects of the involved 
industries; 
(4) provide a mechanism for dealing with the safety and 
wholesomeness of new food products and processes that use 
biotechnology (including transgenic plants and animals); 
(5) provide factual public information about agricultural prod-
uct quality and wholesomeness on a continuing basis; and 
(6) where 
appropriate, build on existing 
institutional 
strengths and commitments to address issues relating to agri-
cultural product quality and wholesomeness and on dem-
onstrated capability to effectively link with operational units of 
the Department, other Federal agencies, and private industry. 
O
t
)
) CHARACTERISTICS OF CENTERS.— 
(1) REGIONAL BASIS.—The centers shall be regional based units 
that conduct a broad spectrum of research, development, and 
education programs to assure the safety and wholesomeness of 
food through the prevention, detection, and modification of 
processes and products involved in the food chain that 
potentially 
compromise agricultural 
product 
quality 
and 
wholesomeness. 
(2) RESEARCH APPROACH.—The centers shall involve multi-
disciplinary and interdisciplinary approaches to the develop-
ment of new knowledge and technology. The centers may 
include multi-institutional linkages between universities or 
related Federal laboratories. 
(3) MANAGEMENT.—The centers shall serve as a management 
focal point for grants that deal with agricultural product qual-
ity research, extension, and teaching, including the provision of 
mechanisms for sharing resources between cooperating institu-
tions and laboratories. 
universities. 
104 STAT. 3778 
PUBLIC LAW 101-624—NOV. 28, 1990 
(4) RESEARCH UNKAGES.—Appropriate linkages within the 
centers shall include related efforts in agriculture, medicine, 
veterinary medicine, public health, engineering and related life 
and physical sciences, and social sciences dealing with health 
related behavior. 
(5) RESEARCH SCOPE.—Each center shall conduct research and 
education on the full spectrum of production, processing, 
transportation, and marketing for commodity classes, such as 
animals (including animal products and animal feed), agro-
nomic crops, and horticultural crops. 
(c) ESTABLISHMENT OF CENTERS.— 
(1) GRANTS.—The Secretary shall make grants to establish the 
centers. Such grants establishing centers shall be competitively 
awarded based on merit and relevance in reference to meeting 
the purposes specified in subsection (a). 
(2) PERIODS AND PREFERENCES.—Grants may be awarded for 
periods of up to five years and may be renewed in competition 
with demonstration of adequate performance. The Secretary 
shall give preference to proposals that demonstrate linkages 
with action agencies of the Department, with other related 
Federal research laboratories and agencies, and with private 
industry. 
™!!f^lfi!,^ 
(3) PRIMARY INSTITUTION IN CENTER.—The primary institution 
involved in a center shall be a land-grant college with other 
cooperating or collaborating academic institutions, nonprofit 
research and development entities, and Federal laboratories. A 
center may involve institutions or laboratories in more than one 
State. 
(4) MATCHING FUNDS.—The non-Federal sponsors of a center 
shall contribute an amount of funds for operation of the center 
equal to not less than the amount awarded by the Federal 
Government. 
(d) PROGRAM PLAN AND REVIEW.— 
(1) PLAN.—A program plan shall be developed by the Depart-
ment after obtaining the advice of representative users of the 
centers, including both action agencies and appropriate rep-
resentatives from various segments of the food industry. The 
plan shall be submitted to the Congress for review at intervals 
of not less than once every three years. 
(2) REVIEW.—Accomplishments and directions of the centers 
shall be reviewed by the Department on a periodic basis, but not 
less frequently than at the end of the second and fourth years 
after the date of the enactment of this Act. The persons conduct-
ing the review shall be appointed by, and report to, the 
Secretary. 
(e) LIMITATION ON USE OF FUNDS.—Funds provided under this 
section may not be used for the planning, repair, rehabilitation, 
acquisition, or construction of a building or facility. 
(f) DEFINITIONS.—For purposes of this section: 
(1) The term "center" means a national center for gigricul-
tural product quality research established under this section. 
(2) The term "Secretary" means the Secretary of Agriculture. 
(3) The term "Department" means the Department of 
Agriculture. 
(g) AUTHORIZATION OF APPROPRIATIONS.—(1) There are authorized 
to be appropriated such funds as may be necessary to carry out this 
section for each of the fiscal years 1991 through 1995. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3779 
(2) The centers shall be funded through the Cooperative State 
Research Service in the Department. 
SEC. 1676. TURKEY RESEARCH CENTER 
There are authorized to be appropriated $500,000 for fiscal year 
1992 to be used by the Agricultural Research Service for planning 
purposes in the establishment of a facility to be known as the 
Agricultural Turkey Research Center to be located in Pelican 
Rapids, Minnesota, and operated in cooperation with the North 
Dakota State University. 
SEC. 1677. RESERVATION EXTENSION AGENTS. 
(a) EsTABUSHMENT.—The Secretary of Agriculture, acting through 
the Extension Service, shall establish appropriate extension edu-
cation progTEuns on Indian Reservations £ind tribal jurisdictions. In 
establishing these extension programs, the Secretary shall consult 
with the Bureau of Indian Affairs, the Intertribal Agriculture Coun-
cil, and the Southwest Indian Agriculture Association, and shall 
make such interagency cooperative agreements or memoranda of 
understanding as may be necessary. The programs to be developed 
and delivered on Reservations and within tribal jurisdictions shall 
be determined with the advice and counsel of Reservation or tribal 
program advisory committees. 
(b) ADMINISTRATION AND MANAGEMENT.—Extension agents shall 
be employees of, and administratively responsible to, the Coopera-
tive Extension Service of the State within which the Reservation or 
tribal jurisdiction is located, and employment and personnel 
management responsibilities sheill be vested with the State Coopera-
tive Extension Service. In cases where a Reservation or tribal 
jurisdiction is located in two or more States, the Secretary of 
Agriculture shall make the determination of administrative respon-
sibility, including possible divisions along State boundaries. 
(c) ADVISORY COMMITTEES.—At the request of a State Extension 
Director, and with the assistance of the Tribal authorities, the 
Secretary of Agriculture may form an advisory committee to give 
overall policy and program advice to that State Extension Director 
with regard to programs conducted on reservations or within tribal 
jurisdictions. Program advisory committees may be formed to assist 
extension staff in development and conduct of program activities. 
(d) STAFFING.—Insofar as possible, agent and specialist staff shall 
include individuals representative of the tribal grouping being 
served. Programs shall emphasize training and employment of local 
people in positions such as program aides, master gardeners, and 
volunteers. Staffing at a particular location shall be dependent on 
the needs and priorities of that location, as identified by the ad-
visory committees and the State Extension Director, and the Direc-
tor may make use of existing personnel and facilities as appropriate. 
(e) PLACING OF AGENTS.—The number of offices and their place-
ment shall be jointly determined by the State Extension Directors 
and tribal authorities of the respective States by taking into consid-
eration the agricultural acreage within the boundaries of an Indian 
Reservation or tribal jurisdiction, the soil classifications of such 
acreage, and the population of such Reservation or tribal 
jurisdiction. 
(f) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 
be appropriated such sums as may be necessary to carry out this 
section. 
Appropriation 
authorization. 
Minnesota. 
7 u s e 5929. 
7 u s e 5930. 
Cooperative 
agreements. 
Manpower 
training 
programs. 
Volunteers. 
104 STAT. 3780 
PUBLIC LAW 101-624—NOV. 28, 1990 
7 use 5931. 
SEC. 1678. SPECIAL GRANT TO STUDY CONSTRAINTS ON AGRICULTURAL 
TRADE. 
(a) GRANT REQUIRED.—The Secretary of Agriculture shall provide 
at least two special grants to land-grant colleges and universities to 
conduct a study that will evaluate the trade impacts of technical 
barriers, quality factors, and end-use characteristics in agricultural 
trade to determine whether such factors are consistent as between 
commodities. Such study shall be conducted with the objective— 
(1) to identify and analyze constraints related to end-use 
characteristics in trade and competition; 
(2) to design production and processing techniques to lessen 
their impacts; and 
(3) to identify public policy alternatives, nationally and inter-
nationally, that may reduce the impacts of such trade 
restrictions. 
(b) JOINT DEVELOPMENT.—The Secretary shall ensure that the 
grants provided for in this section provide for the joint development 
of the methodology and techniques between the recipients of such 
grgmts to meet the objectives set forth in subsection (a). 
(c) REPORT.—Not later than 18 months sifter the date of the 
enactment of this Act, the Secretary shall report the results of the 
study grants under subsection (a) to the Committee on Agriculture 
of the House of Representatives and the Committee on Agriculture, 
Nutrition, and Forestry of the Senate. 
(d) LAND-GRANT COLLEGES AND UNIVERSITIES DEFINED.—For pur-
poses of this section, the term "land-grant colleges £ind universities" 
has the meaning given to that term in section 1404(10) of the 
National Agricultural Research, Teaching, and Extension Policy Act 
of 1977 (7 U.S.C. 3103(10)). 
7 use 5932. 
SEC. 1679. PILOT PROJECT TO COORDINATE FOOD AND NUTRITION EDU-
CATION PROGRAMS. 
Grant programs. 
(a) PILOT PROJECT.—The Secretary of Agriculture shall establish a 
five-year pilot project to make available grants to not less than two 
States, on a competitive basis, for the purpose of implementing in 
such States, a plan that— 
(1) provides for the full coordination of the conceptual design 
and program delivery of food and nutrition education programs 
for potential participants within the State; and 
(2) provides to the greatest extent possible for the coordina-
tion of such food and nutrition education programs with related 
State programs. 
(b) ELEMENTS OF THE PROJECT.—In carrying out subsection (a), the 
Secretary shall— 
(1) provide for enhanced intraagency and interagency co-
ordination in the design and delivery of food and nutrition 
education programs; 
(2) develop more efficient methods, and improved agency 
organization, to inform the public and persons eligible for food 
and nutrition programs about such education programs (includ-
ing those education programs regarding nutrition and manage-
ment of family resources for better nutrition and health) and 
nutrition education programs available at the Federal, State, 
and local level; and 
(3) provide for an evaluation of the degree to which stated 
program coordination objectives are being attained, the impact 
on actual behavioral change of program participants, and the 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3781 
implication of the program outcomes for future public health, 
budget expenditures, and the general public welfare. 
(c) DEFINITIONS.—For purposes of this section: 
(1) The term "coordination" means the development and 
implementation of a consistent and coherent program of nutri-
tion education regarding the receipt and increased beneficial 
use of the resources made available to persons for food and 
nutrition programs and, to the extent possible, related State 
and local food and nutrition programs. 
(2) The term "food and nutrition education programs" in-
cludes any educational programs or components of the food 
stamp program, the expanded food and nutrition education 
progrsim, and such other programs administered by the Depart-
ment of Agriculture as the Secretary determines necessary to 
effectively implement the programs required under subsection 
(a). 
(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 
be appropriated to the Secretary for each of the fiscal years 1991 
through 1995 such sums as may be necessary to carry out the pilot 
project established under subsection (a). 
SEC. 1680. ASSISTIVE TECHNOLOGY PROGRAM FOR FARMERS WITH 7 USC 5933. 
DISABILITIES. 
(a) SPECIAL DEMONSTRATION GRANTS.— 
(1) IN GENERAL.—The Secretary of Agriculture, in consulta-
tion with other appropriate Federal agencies, shall make dem-
onstration grants to support cooperative programs between 
State Cooperative Extension Service sigencies and private non-
profit disability organizations to provide on-the-farm agricul-
tural education £ind assistance directed at accommodating 
disability in farm operations for individuals with disabilities 
who are engEiged in farming and farm-related occupations and 
their families. 
(2) EuGiBLE SERVICES.—Grants awarded under paragraph (1) 
may be used to support programs serving individuals with 
disabilities, and their families, who are engaged in farming and 
farm-related occupations. 
(3) EuGiBLE PROGRAMS.—Grants awarded under paragraph (1) 
may be used to initiate, expand, or sustain programs that— 
(A) provide direct education and assistance to accommo-
date disability in farming to individuals with disabilities 
who engage in farming and farm-related occupations; 
(B) provide on-the-farm technical advice concerning the 
design, fabrication, and use of agricultured and related 
equipment, machinery, and tools, and assist in the modifica-
tion of farm worksites, operations, and living arrangements 
to accommodate individuals with disabilities who engage in 
farming, farm living and farm-related tasks; 
(C) involve community and health care professionals, 
including Extension Service agents and others, in the early 
identification of farm and rural families that are in need of 
services related to the disability of an individual; 
(D) provide specialized education programs to enhance 
the professional competencies of rural agricultural profes-
sionals, rehabilitation and health care providers, vocational 
counselors, and other providers of service to individuals 
104 STAT. 3782 
PUBLIC LAW 101-624—NOV. 28, 1990 
with disabilities, £ind their families, who engage in farming 
or farm-related occupations; and 
(E) mobilize rural volunteer resources, including peer 
counseling among farmers with disabilities and rural 
ingenuity networks promoting cost effective methods or 
accommodating disabilities in farming and farm-related 
activities. 
(4) EXTENSION SERVICE AGENCIES.—Grsints shall be awarded 
under this subsection directly to State Extension Service agen-
cies to enable them to enter into contracts, on a multiyear basis, 
with private nonprofit community-based direct service organiza-
tions to initiate, expand, or sustain cooperative programs de-
scribed under paragraphs (2) and (3). 
(5) MINIMUM AMOUNT.—A grant awarded under this subsec-
tion may not be less than $150,000. 
(6) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated to carry out this subsection— 
(A) not less than $3,000,000 for each of the fiscal years 
1991 and 1992; and 
(B) not less than $5,000,000 for each of the fiscal years 
1993 through 1996. 
(h) NATIONAL GRANT FOR TECHNICAL ASSISTANCE, TRAINING AND 
DISSEMINATION.— 
(1) IN GENERAL.—The Secretary of Agriculture shall award a 
competitive grant to a national private nonprofit disability 
organization to enable such organization to provide technical 
assistance, training, information dissemination and other activi-
ties to support community-based direct service programs of on-
site rural rehabilitation and assistive technology for individuals 
with disabilities, and their families, who are engaged in farming 
or farm-related occupations. 
(2) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated $1,000,000 to carry out this subsection for 
each of the fiscal years 1991 through 1996. 
7 use 5934. 
SEC. 1681. RESEARCH ON HONEYBEE DISEASES. 
(a) SENSE OF CONGRESS.—It is the sense of Congress that— 
(1) diseases affecting the entire honeybee population impact 
on the ability of honeybees to carry out crop pollination and 
honey production, gind therefore impact negatively on bee-
keepers, producers and consumers; and 
(2) certain diseases (such as those caused by teacheal mite, 
varroa mite, and the Africanized honeybee) pose a threat to the 
continued well-being of the general honeybee population, and 
thus merit further study. 
O
t
>
) RESEARCH.—Notwithstanding any other provision of law, the 
Secretary of Agriculture shall give priority attention to the funding 
of research regarding the diseases referred to in subsection (a) that 
are affecting the honeybee population. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3783 
TITLE XVII—FOOD STAMP AND RELATED Sori^'"^ 
PROVISIONS 
g—^Relief 
Act. 
SEC. 1701. SHORT TITLE. 
7 USC 2011 note. 
This title may be cited as the "Mickey Leland Memorial Domestic 
Hunger Relief Act''. 
Subtitle A—Food Stamp Program 
SEC. 1711. REFERENCES TO THE FOOD STAMP ACT OF 1977. 
Whenever in this title an amendment or repeal is expressed in 
terms of an amendment to, or repeal of, a section or other provision, 
the reference shall be considered to be made to a section or other 
provision of the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.), 
except to the extent otherwise specifically provided. 
SEC. 1712. RECIPIENTS OF AGED, BLIND, AND DISABLED BENEFITS IN 
TERRITORIES. 
(a) DEFINITION OF FOOD.—Section 3(g) (7 U.S.C. 2012(g)) is 
amended— 
(1) in clause (3), by striking "under title XVI" and inserting 
"or disability or blindness payments under title I, II, X, XIV, or 
XVI"; and 
(2) in clause (7)— 
(A) by striking "title II or title XVI" and inserting "title 
I, II, X, XIV, or XVI"; and 
(B) by inserting after "section 1616(e) of the Social Secu-
rity Act" the following: "or under standards determined by 
the Secretary to be comparable to standards implemented 
by appropriate State agencies under such section'. 
Ot)) DEFINITION OF HOUSEHOLD.—The last sentence of section 3(i) is 
(1) by striking "title II or title XVI" and inserting "title I, II, 
X, XIV, or XVI^; and 
(2) by inserting after "section 1616(e) of the Social Security 
Act" the following: "or under standards determined by the 
Secretary to be comparable to standards implemented by appro-
priate State agencies under such section". 
SEC. 1713. RESTAURANT MEALS AT CONCESSIONAL PRICES FOR THE 
HOMELESS. 
(a) DEFINITION OF FOOD.—Section 3(gX9) (7 U.S.C. 2012(gX9)) is 
amended by striking "individuals and by a public" and all that 
follows through "or shelter)" and inserting "individuals and by 
private establishments that contract with the appropriate agency of 
the State to offer meals for such individuals at concessional prices". 
(b) CONFORMING CHANGE.—Effective September 29, 1990, section Effective date. 
11002(fK3) of the Homeless Eligibility Clarification Act (7 U.S.C. 
2012 note) is amended by striking "subsection (b)" and inserting 
"subsections (a) and (b)". 
SEC. 1714. CATEGORICAL ELIGIBILITY FOR RECIPIENTS OF GENERAL 
ASSISTANCE. 
Section 5(a) (7 U.S.C. 2014(a)) is amended by— 
104 STAT. 3784 
PUBLIC LAW 101-624—NOV. 28, 1990 
(1) by striking "and beginning on the date of the enactment of 
the Food Security Act of 1985,"; and 
(2) by inserting after the second sentence the following new 
sentence: "Except for sections 6, 16(e)(1), and the third sentence 
of section 3(i), households in which each member receives bene-
fits under a State or local general assistance program that 
complies with standards established by the Secretary for ensur-
ing that the program is appropriate for categorical treatment 
shall be eligible to participate in the food stamp program.". 
SEC. 1715. EXCLUSION OF EDUCATIONAL BENEFITS. 
(a) IN GENERAL.—Section 5(d) (7 U.S.C. 2014(d)) is amended— 
(1) in paragraph (3)— 
(A) by inserting "(A)" after "the like"; and 
(B) by striking "at an institution" and all that follows 
through "handicapped, and", and inserting the following: 
"(including the rental or purchase of any equipment, mate-
rials, and supplies required to pursue the course of study 
involved) at a recognized institution of post-secondary edu-
cation, at a school for the handicapped, in a vocational 
education program, or in a program that provides for 
completion of a secondary school diploma or obtaining the 
equivalent thereof, (B) to the extent that they do not exceed 
the amount made available as an allowance determined by 
such school, institution, or progreun for books, supplies, 
transportation, and other miscellaneous personal expenses 
(other than living expenses), of the student incidental to 
attending such school, institution, or program, and (C)"; 
and 
(2) in the proviso to clause (5)— 
(A) by inserting "and" after "1988),"; 
(B) by striking "non-Federal"; and 
(C) by striking "and no portion of any Federal" and all 
that follows through "mandatory school fees,". 
(b) CLARIFYING AND TECHNICAL AMENDMENT.—The fourth sen-
tence of section 5(e) is amended by inserting after "third party" the 
following: ", amounts made available and excluded for the expenses 
under subsection (dX3),". 
SEC. 1716. EXCLUSION OF CLOTHING ALLOWANCES. 
Section 5(dX5) (7 U.S.C. 2014(dX5)) is amended by inserting after 
"household" the following: "and any allowance a State agency 
provides no more frequently than annually to families with children 
on the occasion of those children's entering or returning to school or 
child care for the purpose of obtaining school clothes (except that no 
such allowance shall be excluded if the State agency reduces 
monthly eissistance to families with dependent children under part 
A of title IV of the Social Security Act (42 U.S.C. 601 et seq.) in the 
month for which the allowance is provided)". 
SEC. 1717. EXCESS MEDICAL EXPENSE DEDUCTION. 
The last sentence of section 5(e) (7 U.S.C. 2014(e)) is amended by 
inserting before the period at the end the following: ", shall rely on 
reasonable estimates of the member's expected medical expenses for 
the certification period (including changes that can be reasonably 
anticipated based on available information about the member's 
medical condition, public or private medical insurance coverage, and 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3785 
the current verified medical expenses incurred by the member), and 
shall not require further reporting or verification of a change in 
medical expenses if such a change has been anticipated for the 
certification period". 
SEC. 1718. BUDGETING AND MONTHLY REPORTING. 
(a) IN GENERAL.—Paragraph (2) of section 5(f) (7 U.S.C. 2014(f)) is 
amended to read as follows: 
"(2XA) Except as provided in subparagraphs (B), (C), and (D), 
households shall have their incomes calculated on a prospective 
basis, as provided in pareigraph (3XA), or, at the option of the State 
agency, on a retrospective basis, as provided in paragraph (3XB). 
"(B) In the case of the first month, or at the option of the State, 
the first and second months, during a continuous period in which a 
household is certified, the State agency shall determine eligibility 
and the amount of benefits on the basis of the household's income 
and other relevant circumstances in such first or second month. 
"(C) Households specified in clauses (i), (ii), (iii), and (iv) of section 
6(cXlXA) shall have their income calculated on a prospective basis, 
as provided in paragraph (3XA). 
"(D) Except as provided in subparagraph (B), households required 
to submit monthly reports of their income and household cir-
cumstances under section 6(cXl) shall have their income calculated 
on a retrospective basis, as provided in paragraph (3XB),". 
(b) CALCULATION OF HOUSEHOLD INCOME.— 
7 use 2014 note. 
(1) IN GENERAL.—Notwithstanding any other provision of law, 
during the period beginning October 1, 1988, and ending on the 
first day of the first month beginning at least 120 days after the 
date of enactment of this Act, a State agency may elect to 
implement the amendment to section 5(fX2) of the Food Stamp 
Act of 1977 (7 U.S.C. 2014(f)(2)) made by section 202(a) of the 
Hunger Prevention Act of 1988 (Public Law 100-435; 102 Stat. 
1656) (with respect to the requirement that income be calculated 
on a prospective basis in the case of households that are not 
required to report monthly on their income and household 
circumstances). 
(2) PAYMENT ERROR RATES.—Notwithstanding section 16(c) of 
the Food Stamp Act of 1977 (7 U.S.C. 2025(c)), during the period 
referred to in paragraph (1), errors resulting solely from im-
plementation by a State agency of the amendment referred to in 
paragraph (1) shall not be included in pajmient error rates 
determined under section 16(c) of such Act. 
SEC. 1719. SIMPLIFYING RESOURCE AND ELIGIBILITY DETERMINATIONS. 
Section 5 (7 U.S.C. 2014) is amended— 
(1) in subsection (g)— 
(A) by designating the first through fourth sentences as 
paragraphs (1) through (4), respectively; and 
(B) by adding at the end the following new paragraph: 
"(5) The Secretary shall promulgate rules by which State agencies Regulations, 
shall develop standards for identifying kinds of resources that, £is a 
practical matter, the household is unlikely to be able to sell for any 
significant return because the household's interest is relatively 
slight or because the cost of selling the household's interest would be 
relatively great. Resources so identified shall be excluded as inacces-
sible resources."; and 
(2) in subsection (j)— 
104 STAT. 3786 
PUBLIC LAW 101-624—NOV. 28, 1990 
(A) by striking "a household in which all members of the 
household receive" and inserting "the resources of a house-
hold member who receives supplemental security income 
benefits under title XVI of the Social Security Act (42 
U.S.C. 1382 et seq.), aid to the aged, blind, or disabled under 
title I, X, XIV, or XVI of the Social Security Act (42 U.S.C. 
301 et seq.) or who receives"; and 
(B) by striking "have satisfied the resource limitations 
prescribed under subsection (g)" and inserting "be exempt 
for purposes of satisfying the resource limitations pre-
scribed under subsection (g) if the resources are considered 
exempt for purposes of such title". 
SEC. 1720. EMERGENCY FOOD FOR DISASTER VICTIMS. 
Section 5(h) (7 U.S.C. 2014(h)) is amended by adding at the end the 
following new paragraph: 
Regulations. 
"(3XA) The Secretary shall provide, by regulation, for emergency 
allotments to eligible households to replace food destroyed in a 
disaster. The regulations shall provide for replacement of the value 
of food actually lost up to a limit approved by the Secretary not 
greater than the applicable maximum monthly allotment for the 
household size. 
"(B) The Secretary shall adjust reporting and other application 
requirements to be consistent with what is practicable under actual 
conditions in the affected area. In making this adjustment, the 
Secretary shall consider the availability of the State agency's offices 
and personnel and any damage to or disruption of transportation 
and communication facilities.". 
SEC. 1721. TRANSITIONAL HOUSING. 
Section 5(kX2) (7 U.S.C. 2014(kX2)) is amended by striking subpara-
graph (F) and inserting the following new subparagraph: 
"(F) housing assistance pa5mients made to a third party on 
behalf of a household residing in transitional housing for the 
homeless in an amount equal to 50 percent of the msiximum 
shelter allowance provided to families not residing in such 
transitional housing under the States' plan for aid to families 
with dependent children approved under part A of title IV of 
the Social Security Act (42 U.S.C. 601 et seq.); or". 
SEC. 1722. EXCLUSION OF GENERAL ASSISTANCE PAYMENTS. 
Section 5(kX2) (7 U.S.C. 2014(kX2)) is amended— 
(1) by striking "or" at the end of subparagraph (F); 
(2) by striking the period at the end of subparagraph (G) and 
inserting "; or"; and 
(3) by adding at the end the following new subparagraph: 
"(H) assistance provided to a third party on behalf of a 
household under a State or local general assistance program, or 
another local basic assistance program comparable to general 
assistance (as determined by the Secretary), if, under State law, 
no sissistance under the program may be provided directly to 
the household in the form of a cash payment.". 
SEC. 1723. BUDGETING AND MONTHLY REPORTING ON RESERVATIONS. 
Section 6(cXlXA) (7 U.S.C. 2015(cXl)(A)) is amended— 
(1) by redesignating clauses (ii) and (iii) as clauses (iii) and (iv), 
respectively; and 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3787 
(2) by inserting after clause (i) the following new clause: 
"(ii) households residing on a reservation;". 
SEC. 1724. PERIODIC ELIGIBILITY INFORMATION REPORTS. 
Section 6(c) (7 U.S.C. 2015(c)) is amended— 
(1) in paragraph (2XC), by striking "forms approved by the 
Secretary" and inserting "State agency designed forms"; and 
(2) in the first sentence of paragraph (3), by striking ", in 
accordance with standards prescribed by the Secretary, they 
contain sufficient information to enable the State agency to 
determine household eligibility and Eillotment levels" and 
inserting "they contain the information relevant to eligibility 
and benefit determinations that is specified by the State 
agency". 
SEC. 1725. SELECTION OF HOUSEHOLD HEAD BY HOUSEHOLD. 
Section 6(dXl) (7 U.S.C. 2015(dXl)) is amended by inserting after 
the first sentence the following new sentences: "The State agency 
shall allow the household to select an adult parent of children in the 
household as its head where all adult household members making 
application agree to the selection. The household may designate its 
head of household under this paragraph each time the household is 
certified for participation in the food stamp program, but may not 
change the designation during a certification period unless there is a 
change in the composition of the household.". 
SEC. 1726. EXPANSION OF EMPLOYMENT AND TRAINING PROGRAM. 
(a) 
LITERACY 
TRAINING.—Section 
6(dX4XB)(v) 
(7 
U.S.C. 
2015(dX4XBXv)) is amended by inserting "and literacy," after "basic 
skills". 
(b) PROGRAMS THAT FOCUS ON SELF-EMPLOYMENT OPPORTUNI-
TIES.— 
(1) AUTHORIZATION FOR PROGRAMS.—Section 6(dX4XB) (7 U.S.C. 
2015(dX4XB)) is amended— 
(A) by redesignating clause (vi) as clause (vii); and 
(B) by inserting after clause (v) the following new clause: 
"(vi) Programs designed to increase the self-sufficiency of 
recipients through self-employment, including programs that 
provide instruction for self-employment ventures.'. 
(2) EXEMPTION FOR RESOURCES USED IN PROJECTS.—Section 
5(gX3) (as designated by section 1719(1) of this Act) is amended 
by inserting before the period at the end of the paragraph the 
following: "and nonliquid resources necessary to allow the 
household to carry out a plan for self-sufficiency approved by 
the State agency that constitutes adequate participation in an 
employment and training program under section 6(d)". 
(c) EXPANDING STATE FLEXIBILITY.—Section 6(dX4)(E) (7 U.S.C. 
2015(d)(4XE)) is amended by adding at the end the following new 
sentence: "Through September 30, 1995, two States may, on applica- Reports. 
tion to and after approval by the Secretary, give priority in the 
provision of services to voluntary participants (including both 
exempt and non-exempt participants), except that this sentence 
shall not excuse a State from compliance with the performance 
standards issued under subparagraphs (K) and (L), and the Sec-
retary may, at the Secretary s discretion, approve additional States' 
requests to give such priority ^f the Secretary reports to C!ongress on 
the number and characteristics of voluntary participants given 
104 STAT. 3788 
PUBLIC LAW 101-624—NOV. 28, 1990 
priority under this sentence and such other information as the 
Secretary determines to be appropriate.". 
(d) STATE IMPLEMENTATION OF PERFORMANCE STANDARDS.—Section 
6(dX4XLXiii) (7 U.S.C. 2015(dX4XLXiii)) is amended by striking 
"April" and inserting "October". 
SEC. 1727. ELIGIBILITY FOR STUDENTS. 
Subsection (e) of section 6 (7 U.S.C. 2015(e)) is amended to read as 
follows: 
"(e) No individual who is a member of a household otherwise 
eligible to participate in the food stamp program under this section 
shall be eligible to participate in the food stamp program as a 
member of that or any other household if the individual is enrolled 
at least half-time in an institution of higher education, unless the 
individual— 
"(1) is under age 18 or is age 50 or older; 
"(2) is not physically or mentally fit; 
"(3) is assigned to or placed in an institution of higher edu-
cation through or in compliance with the requirements of— 
"(A) a program under the Job Training Partnership Act 
(29U.S.C. 1501etseq.); 
"(B) an employment and training program under this 
section; 
"(C) a program under section 236 of the Trade Act of 1974 
(19 U.S.C. 2296); or 
"(D) another program for the purpose of emplo5mient £uid 
training operated by a State or local government, as deter-
mined to be appropriate by the Secretary; 
"(4) is employed a minimum of 20 hours per week or partici-
pating in a State or federally financed work study program 
during the regular school year; 
"(5)is-
"(A) a parent with responsibility for the care of a depend-
ent child under age 6; or 
"(B) a parent with responsibility for the care of a depend-
ent child above the age of 5 and under the age of 12 for 
whom adequate child care is not available to enable the 
individual to attend class and satisfy the requirements of 
paragraph (4); 
"(6) is receiving aid to families with dependent children under 
part A of title IV of the Social Security Act (42 U.S.C. 601 et 
seq.); 
"(7) is so enrolled as a result of participation in the work 
incentive program under title IV of the Social Security Act or 
its successor programs; or 
"(8) is enrolled full-time in an institution of higher education, 
as determined by the institution, and is a single parent with 
responsibility for the care of a dependent child imder age 12.". 
SEC. 1728. STAGGERED ISSUANCES; RESERVATIONS. 
Subsection (h) of section 7 (7 U.S.C. 2016(h)) is amended to read as 
follows: 
"(hXD The State agency may establish a procedure for staggering 
the issuance of coupons to eligible households throughout the 
month. The State agency shall establish such a procedure for eli-
gible households residing on reservations. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3789 
"(2) Any procedure established under paragraph (1) shall not 
reduce the allotment of any household and shall ensure that no 
household experiences an interval between issuances of more than 
40 days. The procedure may include issuing a household's benefits in 
more than one issuance.". 
SEC. 1729. ELECTRONIC BENEFITS ISSUANCE. 
(a) IN GENERAL.—Section 7 (7 U.S.C. 2016) is amended by adding at 
the end the following new subsection: 
"(iXlXA) Any State agency may, with the approval of the Sec-
retary, implement an on-line electronic benefit transfer system in 
which household benefits determined under section 8(a) are issued 
from and stored in a central data bank and electronicsdly accessed 
by household members at the point-of-sale. 
"(B) No State agency may implement or expand an electronic 
benefit transfer system without prior approval from the Secretary. 
"(2) The Secretary shall issue final regulations effective no later Regulations. 
than April 1, 1992, that establish standards for the approval of such 
a system. The standards shall include— 
"(A) determining the cost-effectiveness of the system to 
ensure that its operational cost, including the pro rata cost of 
capital expenditures and other reasonable startup costs, does 
not exceed, in any 1 year, the operational cost of issuance 
systems in use prior to the implementation of the on-line elec-
tronic benefit transfer system; 
"(B) defining the required level of recipient protection regard-
ing privacy, ease of use, and access to and service in retail food 
stores; 
"(C) the terms and conditions of participation by retail food 
stores, financial institutions, and other appropriate parties; 
"(D) system security; 
"(E) system transaction interchange, reliability, and process-
ing speeds; 
"(F) financial accountability; 
"(G) the required testing of system operations prior to im-
plementation; and 
"(H) the analysis of the results of system implementation in a 
limited project area prior to expansion. 
"(3) In the case of a system described in paragraph (1) in which 
participation is not optional for households, the Secretary shall not 
approve such a system unless— 
"(A) a sufficient number of eligible retail food stores, includ-
ing those stores able to serve minority language populations, 
have agreed to participate in the system throughout the area in 
which it will operate to ensure that eligible households will not 
suffer a significant reduction in their choice of retail food stores 
or a significant increase in the cost of food or transportation to 
participating food stores; and 
"(B) any special equipment necessary to allow households to 
purchase food with the benefits issued under this Act is 
operational— 
"(i) in the case of a participating retail food store in 
which coupons are used to purchase 15 percent or more of 
the total dollar amount of food sold by the store (as deter-
mined by the Secretary), at all registers in the store; and 
"(ii) in the case of other participating stores, at a suffi-
cient number of registers to provide service that is com-
104 STAT. 3790 
PUBLIC LAW 101-624—NOV. 28, 1990 
parable to service provided individuals who are not mem-
bers of food stamp households, as determined by the 
Secretary. 
"(4) Administrative costs incurred in connection with activities 
under this subsection shall be eligible for reimbursement in accord-
ance with section 16, subject to the limitations in section 16(g). 
"(5) The Secretary shall periodically inform State agencies of the 
advantages of using electronic benefit systems to issue benefits in 
accordance with this subsection in lieu of issuing coupons to house-
holds. 
"(6) This subsection shall not diminish the authority of the Sec-
retary to conduct projects to test automated or electronic benefit 
delivery systems under section 17(f).". 
7 use 2026. 
(t)) CONFORMING AND TECHNICAL AMENDMENT.—Section 17(f) is 
amended by striking "(f)(1)" and inserting "(f)". 
SEC. 1730. MINIMUM BENEFIT. 
Section 8(a) (7 U.S.C. 2017(a)) is amended by inserting before the 
final period ", and shall be adjusted on each October 1 to reflect the 
percentage change in the cost of the thrifty food plan without regard 
to the special adjustments under section 3(o) for the 12-month period 
ending the preceding June, with the result rounded to the nearest 
$5". 
SEC. 1731. ISSUANCE OF AGGREGATE ALLOTMENTS. 
Section 17(a) (7 U.S.C. 2026(a)) is amended— 
(1) by inserting "(1)" after the subsection designation; and 
(2) by adding at the end the following new paragraph: 
"(2) The Secretary may, on application, permit not more than two 
State agencies to establish procedures that allow households whose 
monthly food stamp benefits do not exceed $20, at their option, to 
receive, in lieu of their food stamp benefits for the initial period 
under section 8 and their regular allotment in following months, 
and at intervals of up to 3 months thereafter, aggregate allotments 
not to exceed $60 and covering not more than 3 months' benefits. 
The allotments shall be provided in accordance with paragraphs (3) 
and (9) of section 11(e) (except that no household shall begin to 
receive combined allotments under this section until it has complied 
with all applicable verification requirements of section 11(e)(3)) and 
(with respect to the first aggregate allotment so issued) within 40 
days of the last coupon issuance.'. 
SEC. 1732. STATE FLEXIBILITY IN ASSISTING HOUSEHOLDS. 
Paragraph (3) of section 8(c) (7 U.S.C. 2017(c)(3)) is amended to 
read as follows: 
"(3) A State agency— 
"(A) in the case of a household that is not entitled in the 
month in which it applies to expedited service under section 
11(e)(9), may provide that an eligible household appljdng after 
the 15th day of the month shall receive, in lieu of its initial 
allotment and its regular allotment for the following month, an 
allotment that is the aggregate of the initial allotment and the 
first regular allotment, which shall be provided in accordance 
with paragraph (3) of section 11(e); and 
"(B) in the case of a household that is entitled in the month in 
which it applies to expedited service under section ll(eX9), shall 
provide that an eligible household applying after the 15th day of 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3791 
the month shall receive, in lieu of its initial allotment and its 
regular allotment for the following month, an allotment that is 
the aggregate of the initial allotment and the first regular 
allotment, which shall be provided in accordance with para-
graphs (3) and (9) of section 11(e).". 
SEC. 1733. PERIODIC REAUTHORIZATION OF RETAIL FOOD STORES AND 
WHOLESALE FOOD CONCERNS. 
Section 9(a) (7 U.S.C. 2018(a)) is amended— 
(1) by inserting "(1)" after the subsection designation; and 
(2) by adding at the end the following new paragraph: 
"(2) The Secretary is authorized to issue regulations providing for 
a periodic reauthorization of retail food stores and wholesale food 
concerns.". 
SEC. 1734. AUTHORIZATION OF WHOLESALE FOOD CONCERNS. 
Section 9(bXl) (7 U.S.C. 2018(bXl)) is amended by inserting after 
the first sentence the following new sentence: "No co-located whole-
sale-retail food concern may be authorized to accept and redeem 
coupons as a retail food store, unless (A) the concern does a substan-
tisd level of retail food business, or (B) the Secretary determines that 
failure to authorize such a food concern as a retail food store would 
cause hardship to food stamp households.". 
SEC. 1735. REQUIRED SUBMISSION OF CERTAIN IDENTIFYING INFORMA-
TION BY RETAIL FOOD STORES AND WHOLESALE FOOD 
CONCERNS. 
(a) IN GENERAL.—Section 205(cX2XC) of the Social Security Act (42 
U.S.C. 405(cX2XC)) is amended— 
(1) by redesignating clauses (ii), (iii), and (iv) £is clauses (iv), (v), 
and (vi), respectively; 
(2) by redesignating subclauses (I) and (II) of clause (i) as 
clauses (i) and (ii), respectively; and 
(3) by inserting after clause (ii) (as redesignated) the following 
new clause: 
"(iii) In the administration of section 9 of the Food Stamp Act of 
1977 (7 U.S.C. 2018) involving the determination of the qualifications 
of applicants under such Act, the Secretary of Agriculture may 
require each applicant retail store or wholesale food concern to 
furnish to the Secretary of Agriculture the social security account 
number of each individual who is an officer of the store or concern 
and, in the case of a privately owned applicant, furnish the social 
security account numbers of the owners of such applicant. No officer 
or employee of the Department of Agriculture shall have access to 
any such number for any purpose other than the establishment and 
maintenance of a list of the nemies and social security account 
numbers of such individuals for use in determining those applicants 
who have been previously sanctioned or convicted under section 12 
or 15 of such Act (7 U.S.C. 2021 or 2024). The Secretary of Agri-
culture shall restrict, to the satisfaction of the Secretary of Health 
and Human Services, access to social security account numbers 
obtained pursuant to this clause only to officers and employees of 
the United States whose duties or responsibilities require access for 
the administration or enforcement of the Food Stamp Act of 1977. 
The Secretary of Agriculture shall provide such other safeguards as Confidential 
the Secretary of Health and Human Services determines to be ^formation. 
104 STAT. 3792 
PUBLIC LAW 101-624—NOV. 28, 1990 
necessary or appropriate to protect the confidentiality of the social 
security account numbers.". 
(b) CONFIDENTIALITY OF SOCIAL SECURITY ACCOUNT NUMBERS.— 
Section 205(cX2XC) of such Act (as amended by subsection (a) of this 
section) is further amended by adding at the end the following new 
clause: 
"(viiXI) Social security account numbers and related records that 
are obtained or matintained by authorized persons pursueint to any 
provision of law enacted on or after October 1, 1990, shsJl be 
confidential, and no authorized person shall disclose any such social 
security account number or related record. 
"(II) Paragraphs (1), (2), and (3) of section 7213(a) of the Internal 
Revenue Code of 1986 shall apply with respect to the unauthorized 
willful disclosure to any person of social security account numbers 
and related records obtained or maintained by an authorized person 
pursuant to a provision of law enacted on or srfter October 1,1990, in 
the same manner and to the same extent as such paragraphs apply 
with respect to unauthorized disclosures of return and return 
information described in such paragraphs. Paragraph (4) of section 
7213(a) of such (Dode shall apply with respect to the willful offer of 
any item of material value in exchange for any such social security 
account number or related record in the same manner and to the 
same extent as such paragraph applies with respect to offers (in 
exchange for any return or return information) described in such 
paragraph. 
"(Ill) For purposes of this clause, the term 'authorized person' 
means an officer or employee of the United States, an officer or 
employee of any State, political subdivision of a State, or agency of a 
State or political subdivision of a State, and any other person (or 
officer or employee thereof), who has or had access to social security 
account numbers or related records pursuant to any provision of law 
enacted on or after October 1, 1990. For purposes of this subclause, 
the term 'officer or employee' includes a former officer or employee. 
"(TV) For purposes of this clause, the term 'related record' means 
any record, list, or compilation that indicates, directly or indirectly, 
the identity of any individual with respect to whom a request for a 
social security account number is maintained pursuant to this 
clause.". 
(c) REQUIRED SUBMISSION OF EMPLOYER IDENTIFICATION NUM-
26 use 6109. 
BERS.—Section 6109 of the Internal Revenue Code of 1986 (relating 
to identifying numbers) is amended by adding at the end the follow-
ing new subsection: 
(f) ACCESS TO EMPLOYER IDENTIFICATION NUMBERS BY SECRETARY 
OF AGRICULTURE FOR PURPOSES OF FOOD STAMP ACT OF 1977.— 
"(1) IN GENERAL.—In the administration of section 9 of the 
Food Stamp Act of 1977 (7 U.S.C. 2018) involving the determma-
tion of the qualifications of applicants under such Act, the 
Secretary of Agriculture may, subject to this subsection, require 
each applicant retail store or wholesale food concern to furnish 
to the Secretary of -Agriculture the employer identification 
number assigned to the store or concern pursuant to this sec-
tion. The Secretary of Agriculture shall not have access to any 
such number for any purpose other than the establishment and 
maintenance of a list of the names and employer identification 
numbers of the stores and concerns for use in determining those 
applicants who have been previously sanctioned or convicted 
under section 12 or 15 of such Act (7 U.S.C. 2021 or 2024). 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3793 
"(2) SAFEGUARDS.—The Secretary of Agriculture shall restrict, 
to the satisfaction of the Secretary of the Treasury, access to 
employer identification numbers obtained pursuant to para-
graph (1) only to officers and employees of the United States 
whose duties or responsibilities require access for the adminis-
tration or enforcement of the Food Stamp Act of 1977. The 
Secretary of Agriculture shall provide such other safeguards as 
the Secretary of the Treasury determines to be necessary or 
appropriate to protect the confidentiality of the employer 
identification numbers. 
"(3) CONFIDENTIALITY AND NONDISCLOSURE RULES.—Employer 
identification numbers that are obtained or maintained by the 
Secretary of Agriculture pursuant to this subsection shall be 
confidential, and no officer or employee of the United States 
who has or had access to the social security account numbers 
shall disclose any such employer identification number obtained 
thereby in any manner. For purposes of this paragraph, the 
term 'officer or employee' includes a former officer or employee. 
"(4) SANCTIONS.—Paragraphs (1), (2), and (3) of section 7213(a) 
shall apply with respect to the unauthorized willful disclosure 
to any person of employer identification numbers maintained 
by the Secretary of Agriculture pursuant to this subsection in 
the same manner and to the same extent as such paragraphs 
apply with respect to unauthorized disclosures of return and 
return information described in such paragraphs. Paragraph (4) 
of section 7213(a) shall apply with respect to the willful offer of 
any item of material value in exchange for any such employer 
identification number in the same manner and to the same 
extent as such paragraph applies with respect to offers (in 
exchange for any return or return information) described in 
such paragraph. . 
SEC. 1736. SIMPLIFIED APPLICATION REQUIREMENTS. 
Section ll(eX2) (7 U.S.C. 2020(eX2)) is amended— 
(1) in the third sentence, by striking "instructions" and insert-
ing "(on or near its front cover) explanations"; and 
(2) by striking the sentence beginning "One adult member" 
and inserting the following new sentences: "The State agency 
shall require that an adult representative of each household 
that is applying for food stamp benefits shall certify in writing, 
under penalty of perjury, that the information contained in the 
application is true and that all members of the household are 
either citizens or are aliens eligible to receive food stamps under 
section 6(f). The signature of the adult under this section shall 
be deemed sufficient to comply with any provision of Federal 
law requiring household members to sign the application or 
statements in connection with the application process.". 
SEC. 1737. ESTIMATES IN LIEU OF VERIFICATION FOR HOMELESS HOUSE-
HOLDS WITH SHELTER COSTS. 
Section ll(eX3XE) (7 U.S.C. 2020(eX3XE)) is amended by inserting 
before the final semicolon a period and the following: "Under rules 
prescribed by the Secretary, a State agency shall develop standard 
estimates of the shelter expenses that may reasonably be expected 
to be incurred by households in which all members are homeless but 
that are not receiving free shelter throughout the month. The 
Secretary may issue regulations to preclude the use of the estimates 
104 STAT. 3794 
PUBLIC LAW 101-624—NOV. 28, 1990 
for households with extremely low shelter costs for whom the 
following sentence shall not apply. A State agency shall use the 
estimates in determining the allotments of the households, unless a 
household verifies higher expenses". 
SEC. 1738. RURAL ISSUANCE PROCEDURES. 
Section 11(e) (7 U.S.C. 2020(e)) is amended— 
(1) by striking "and" at the end of paragraph (21); 
(2) by striking the period at the end of paragraph (22) and 
inserting a semicolon; 
(3) by striking "and" at the end of paragraph (23); 
(4) by striking the period at the end of paragraph (24) and 
inserting "; and"; and 
(5) by adding at the end the following new paragraph: 
"(25) a procedure for designating project areas or parts of 
project areas that are rural and in which low-income persons 
face substantial difficulties in obtaining transportation. The 
State agency shall designate the areas according to procedures 
approved by the Secretary. In each area so designated, the State 
agency shall provide for the issuance of coupons by mail to all 
eligible households in the area, except that any household with 
mail losses exceeding levels established by the Secretary shall 
not be entitled to such a mailing and the State agency shall not 
be required to issue coupons by mail in those localities within 
such area where the mail loss rates exceed standards set by the 
Secretary.". 
SEC. 1739. NUTRITION EDUCATION. 
Section 11(f) (7 U.S.C. 2020(f)) is amended by striking the first 
sentence and inserting the following new sentence: "To encourage 
the purchase, preparation, and consumption of nutritious foods, the 
Secretary is authorized to assign responsibility for the nutrition 
education of individuals eligible for food stamps, or the program for 
the distribution of commodities on reservations, to the Cooperative 
Extension Service, in cooperation with the Food and Nutrition 
Service.". 
SEC. 1740. FOOD 
STAMP 
APPLICATION 
FOR 
GENERAL 
ASSISTANCE 
HOUSEHOLDS. 
Section ll(iX3) (7 U.S.C. 2020(i)(3)) is amended— 
(1) by inserting after "State or local general assistance grant" 
the following: "in a State that has a single State-wide general 
assistance application form"; and 
(2) by inserting before the semicolon at the end the follow-
ing: ", and households applying for a local general assistance 
grant in a local jurisdiction in which the agency administering 
the general assistance program also administers the food stamp 
program shall be provided an application for participation in 
the food stamp program at the time of their application for 
general assistance, along with information concerning how to 
apply for the food stamp program". 
SEC. 1741. APPLICANTS FOR SUPPLEMENTAL SECURITY INCOME. 
Section ll(jXl) (7 U.S.C. 2020(j)(l)) is amended by inserting 
"supplemental security income or" after "recipient of". 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3795 
SEC. 1742. AUDIT OF SIMPLIFIED FOOD STAMP APPLICATIONS AT SOCIAL 7 USC 2020 note. 
SECURITY ADMINISTRATION OFFICES. 
(a) IN GENERAL.—The Comptroller General of the United States 
shall conduct an audit of the progreuns established under subsec-
tions (i) and 0') of section 11 of the Food Stamp Act of 1977 (7 U.S.C. 
2020) under which an applicant for or recipient of social security 
benefits may make or be provided a simple application to participate 
in the food stamp program at social security offices, including an 
examination of whether— 
(1) the programs are operating effectively; and 
(2XA) the program for recipients of supplemental security 
income established under title XVI of the Social Security Act 
(42 U.S.C. 1381 et seq.) should be expanded to include all 
applicants for and recipients of social security benefits; or 
(B) a joint application is feasible for benefits under the Food 
Stamp Act of 1977 (7 U.S.C. 2011 et seq.) and supplemental 
security income benefits. 
Ot)) REPORT.—Not later than December 31, 1991, the Comptroller 
General shall deliver a report on the results of the study required by 
this section to the Committee on Agriculture of the House of Rep-
resentatives, the Committee on Agriculture, Nutrition, and Forestry 
of the Senate and the Special Committee on Aging of the Senate. 
SEC. 1743. PERMANENT DISQUALIFICATION. 
Section 1203X3) (7 U.S.C. 2021(bX3)) is amended— 
(1) by striking "or" at the end of subparagraph (A); 
(2) in subparagraph (B)— 
(A) by inserting after "$20,000" the following: "for each 
violation (except that the amount of civil money penalties 
imposed during a 2-year period may not exceed $40,000)"; 
(B) by inserting after "substantial evidence" the follow-
ing: "(including evidence that neither the ownership nor 
management of the store or food concern was aware of, 
approved, benefited from, or was involved in the conduct or 
approval of the violation)"; and 
(C) by striking the period at the end of the subparagraph 
and inserting "; or"; and 
(3) by adding at the end the following new subparagraph: 
"(C) a finding of the sale of firearms, ammunition, explo- Arms and 
sives, or controlled substances (as the term is defined in munitions. 
section 802 of title 21, United States Code) for coupons, Penalties. 
except that the Secretary shall have the discretion to 
impose a civil money penalty of up to $20,000 for each 
violation (except that the amount of civil money penalties 
imposed during a 2-year period may not exceed $40,000) in 
lieu of disqualification under this subparagraph if the Sec-
retary determines that there is substantial evidence 
(including evidence that neither the ownership nor manage-
ment of the store or food concern was aware of, approved, 
benefited from, or was involved in the conduct or approval 
of the violation) that the store or food concern had an 
effective policy and program in effect to prevent violations 
of this Act". 
SEC. 1744. FINES FOR ACCEPTANCE OF LOOSE COUPONS. 
Section 12(e) (7 U.S.C. 2021(e)) is amended by adding at the end the 
following new paragraph: 
104 STAT. 3796 
PUBLIC LAW 101-624—NOV. 28, 1990 
"(3) The Secretary may impose a fine against any retail food store 
or wholesale food concern that accepts food coupons that are not 
accompanied by the corresponding book cover, other than the 
denomination of coupons used for making change as specified in 
regulations issued under this Act. The amount of any such fine shall 
be established by the Secretary and may be assessed and collected in 
accordance with regulations issued under this Act separately or in 
combination with any fiscal claim established by the Secretary. The 
Attorney General of the United States may institute judicial action 
in any court of competent jurisdiction against the store or concern to 
collect the fine.". 
SEC. 1745. FINES FOR UNAUTHORIZED THIRD PARTIES THAT ACCEPT 
FOOD STAMPS. 
Section 12 (7 U.S.C. 2021) is amended by adding at the end the 
following new subsection: 
"(f) The Secretary may impose a fine against any person not 
approved by the Secretary to accept and redeem food coupons who 
violates any provision of this Act or a regulation issued under this 
Act, including violations concerning the acceptance of food coupons. 
The amount of any such fine shall be established by the Secretary 
and may be assessed and collected in accordance with regulations 
issued under this Act separately or in combination with any fiscal 
claim established by the Secretary. The Attorney General of the 
United States may institute judicial action in any court of com-
petent jurisdiction against the person to collect the fine.". 
SEC. 1746. FRAUD CLAIMS REPAYMENT. 
The last sentence of section 13(bXlXA) (7 U.S.C. 2022(bXlXA)) is 
amended by striking "within thirty days" and inserting "on the date 
of receipt (or, if the date of receipt is not a business day, on the next 
business day)". 
SEC. 1747. COMPUTER FRAUD PENALTIES. 
(a) USE OF AN ACCESS DEVICE.—The first sentence of section 
15(bXl) (7 U.S.C. 2024(bXl)) is amended— 
(1) by striking "or authorization cards in any manner not 
authorized by" and inserting ", authorization cards, or access 
devices in any manner contrary to"; 
(2) by inserting after "a value of $100 or more," the following: 
"or if the item used, trsinsferred, acquired, altered, or possessed 
is an access device that has a value of $100 or more,"; and 
(3) by inserting after "a value of less than $100," the follow-
ing: "or if the item used, transferred, acquired, altered, or 
processed is an access device that has a value of less than 
$100,". 
(b) DEFINITION.—Section 3 (7 U.S.C. 2012) is amended by adding at 
the end the following new subsection: 
"(u) 'Access device' means any card, plate, code, account number, 
or other means of access that can be used, alone or in conjunction 
with another access device, to obtain payments, allotments, benefits, 
money, goods, or other things of value, or that can be used to initiate 
a transfer of funds under this Act.". 
(c) CONFORMING CHANGE.—The first sentence of section 15(g) (7 
U.S.C. 2024(g)) is amended by striking "or authorization cards in any 
manner not authorized by" and inserting ", authorization cards or 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3797 
access devices, or an3rthing of value obtained by use of an access 
device, in any manner contrary to". 
SEC. 1748. UNLAWFUL USE OF COUPONS IN LAUNDERING MONETARY 
INSTRUMENTS. 
The first sentence of section 15(bXl) (7 U.S.C. 2024(bXl)) (as 
amended by section 1747) is further amended— 
(1) by inserting after "Act shall," the following: "if such 
coupons, authorization cards, or access devices are of a value of 
$5,000 or more, be guilty of a felony and shall be fined not more 
than $250,000 or imprisoned for not more than twenty years, or 
both, and shall,"; and 
(2) by inserting after "$100 or more," each place that such 
appears the following: "but less than $5,000,". 
SEC. 1749. COUPON TRAFFICKING. 
Section 15(c) (7 U.S.C. 2024(c)) is amended by striking "$10,000" 
each place it appears £uid inserting "$20,000". 
SEC. 17S0. RETENTION OF FUNDS OR ALLOTMENTS RECOVERED OR 
COLLECTED BY STATES. 
The proviso of the first sentence of section 16(a) (7 U.S.C. 2025(a)) 
is amended— 
(1) by striking "50 per centum" Eind inserting "25 percent 
during the period beginning October 1, 1990, and ending 
September 30,1995, and 50 percent thereafter"; and 
(2) by striking "25 per centum" and inserting "10 percent 
during the period beginning October 1, 1990, and ending 
September 30,1995, and 25 percent thereafter". 
SEC. 1751. QUALITY CONTROL SANCTIONS. 
7 USC 2025 note. 
(a) IN GENERAL.—No disallowance or other similar action shall be 
applied to or collected from any State for any of the fiscal years 
1983,1984, or 1985 under section 16(c) of the Food Stamp Act of 1977 
(7 U.S.C. 2025(c)) or any predecessor statutory or regulatory provi-
sion relating to disallowances or other similar actions for erroneous 
issuances made in canning out a State plan under such Act, except 
for amounts to be paid or collected after the date of enactment of 
this Act pursuant to settlement agreements which do not provide for 
pajnnent adjustments based on future changes in law. 
(b) APPUCATION.—Subsection (a) shall gdso apply to disallowances 
described in subsection (a) with respect to which an administrative 
or judicial appeal is pending on the date of enactment of this Act, 
including any such disallowance that has been collected before such 
date. 
SEC. 1752. FEDERAL MATCH FOR AUTOMATION. 
(a) IN GENERAL.—Section 16(g) (7 U.S.C. 2025(g)) is amended— 
(1) by striking "Effective October 1, 1980, the" and inserting 
"The"; and 
(2) by striking "75 per centum" and inserting "63 percent 
effective on October 1,1991". 
0)) APPUCATION.—The amendment made by subsection (aX2) shall ^ use 2025 note. 
not apply to proposals for automatic data processing and informa-
tion retrieval systems under section 16(g) of the Food Stamp Act of 
1977 that were approved by the Secretary of Agriculture prior to the 
date of enactment of this Act. 
104 STAT. 3798 
PUBLIC LAW 101-624—NOV. 28, 1990 
SEC. 1753. EMPLOYMENT AND TRAINING ALLOCATIONS. 
Paragraph (1) of section 16(h) (7 U.S.C. 2025(hXl)) is amended to 
read as follows: 
"(IXA) The Secretary shall allocate among the State agencies in 
each fiscal year, from funds appropriated for the fiscal year under 
section 18(aXl), the amount of $75,000,000 for each of the fiscal years 
1991 through 1995 to carry out the employment and training pro-
gram under section 6(dX4), except as provided in paragraph (3), 
during the fiscal year. 
"(B) In making the allocation required by subparagraph (A) for 
each of the fiscal years 1992 through 1995, the Secretary shall 
allocate $15,000,000 among the States based on State agency 
performance under section 6(dX4), as determined by the Secretary. 
"(C) In making the allocation required by subparagraph (A) for 
fiscal year 1992, the Secretary shall allocate nonperformance fund-
ing of $60,000,000 among the States in a manner such that each 
State is allocated funds equal to— 
"(i) a funding level determined under the nonperformance 
funding allocation formula used for fiscal year 1991; 
"(ii) increased by one half of the difference between such 
funding level and an amount, if larger, based on the State's 
proportion of the number of individuals registered for work 
under section 6(dX4); or 
"(iii) decreased by one half of the difference between such 
funding level and such amount, if such amount is smsiller. 
"(D) In making the allocation required by subparagraph (A) for 
each of the fiscal years 1993 through 1995, the Secretary shall 
allocate nonperformance funding of $60,000,()00 among the States 
based on each State's proportion of the number of individuals 
registered for work under section 6(dX4). 
"(E) Notwithstanding subparagraphs (C) and (D), the Secretary 
shall— 
"(i) for fiscal year 1992, ensure that each State is allocated at 
least $50,000 by reducing, to the extent necessary, the funds 
allocated to States (other than States allocated less than 
$50,000) whose funding level has been increased under subpara-
graph (C); and 
"(ii) for each of the fiscal years 1993 through 1995, ensure that 
each State is allocated at least $50,000 by reducing, to the 
extent necessary, the funds allocated to those States allocated 
more than $50,000. 
"(F) Each such State's share of such reduction under subpara-
graph (E) shall represent its proportion of individuals registereid for 
work under section 6(dX4) in all States subject to the reduction.". 
SEC. 1754. EXTENSION OF PILOT PROJECTS. 
The last sentence of section 17(bXl) (7 U.S.C. 2026(bXl)) is 
amended by striking "1990" and inserting "1995". 
SEC. 1755. SALES TAXES IN CASH-OUT DEMONSTRATION PROJECTS. 
Section 17(bXl) (7 U.S.C. 2026(bXl)) is amended— 
(1) by inserting "(A)" after the parg^aph designation; and 
(2) by adding at the end the following new subparagraph: 
"(BXi) No waiver or demonstration program shall be approved 
under this Act after the date of enactment of this subparagraph 
unless— 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3799 
"(I) any household whose food assistance is issued in a form 
other than coupons has its allotment increased to the extent 
necessary to compensate for any State or local sales tax that 
may be collected in all or part of the area covered by the 
demonstration project, the tax on purchases of food by any such 
household is waived, or the Secretary determines on the basis of 
information provided by the State agency that the increase is 
unnecessary on the basis of the limited nature of the items 
subject to the State or local sales tax; and 
"(II) the State agency conducting the demonstration project 
pays the cost of any increased allotments. 
"(ii) Clause (i) shall not apply if a waiver or demonstration project 
already provides a household with assistance that excee<k that 
which the household would otherwise be eligible to receive by more 
than the estimated amount of any sales tax on the purchases of food 
that would be collected from the household in the project area in 
which the household resides.". 
SEC. 1756. ENHANCED 
WAIVER 
AUTHORITY 
FOR 
DEMONSTRATION 
PROJECTS. 
Section 17(b) (7 U.S.C. 2026(b)) is amended— 
(1) in the second sentence of paragraph (IXA) (as amended by 
section 1755(1) of this Act), by inserting after "eligible house-
holds" the following: "or a project conducted under paragraph 
(3)"; and 
(2) by adding at the end the following new paragraph: 
"(3XA) The Secretary may conduct demonstration projects to test 
improved consistency or coordination between the food stamp 
employment and training program and the Job Opportunities and 
Basic Skills program under title IV of the Social Security Act (42 
U.S.C. 601 et seq.). 
"(B) Notwithstanding paragraph (1), the Secretary may, as part of 
a project authorized under this parsigraph, waive requirements 
under section 6(d) to permit a State to operate an emplo5anent and 
training program for food stamp recipients on the same terms and 
conditions under which the State operates its Job Opportunities and 
Basic Skills program for recipients of aid to families with dependent 
children under part F of title IV of the Social Security Act (42 U.S.C. 
681 et seq.). Any work experience program conducted £is part of the 
project shall be conducted in conformity with section 482(f) of such 
Act (42 U.S.C. 682(f)). 
"(C) A State seeking such a waiver shall provide assurances that 
the resulting emplo)mient and training program shall meet the 
requirements of subsections (a)(19) and (g) of section 402 of such Act 
(42 U.S.C. 602) (but not including the provision of transitional 
benefits under clauses (ii) through (vii) of section 402(gXlXA) and 
sections 481 through 487 of such Act (42 U.S.C. 681 through 687). 
Each reference to aid to families with dependent children' in such 
sections shall be deemed to be a reference to food stamps for 
purposes of the demonstration project. 
"(D) Notwithstanding the other provisions of this paragraph, 
participation in an employment and training activity in which food 
stamp benefits are converted to cash shall occur only with the 
consent of the participant. 
"(E) For the purposes of any project conducted under this para-
graph, the provisions of this Act affecting the rights of recipients 
may be waived to the extent necessary to conform to the provisions 
104 STAT. 3800 
PUBLIC LAW 101-624—NOV. 28, 1990 
of section 402, and sections 481 through 487, of the Social Security 
Act. 
Federal 
"(F) At least 60 days prior to granting final approval of a project 
^^hi^*^t' 
under this paragraph, the Secretary shall publish the terms and 
publication. 
conditions for any demonstration project conducted under the para-
graph for public comment in the Federal Register and shall notify 
the Committee on Agriculture of the House of Representatives and 
the Committee on Agriculture, Nutrition, and Forestry of the 
Senate. 
"(G) Waivers may be granted under this paragraph to conduct 
projects at any one time in a total of up to 60 project areas (or parts 
of project areas), as such areas are defined in regulations in effect on 
January 1,1990. 
"(H) A waiver for a change in program rules may be granted 
under this paragraph only for a demonstration project that has been 
approved by the Secretary, that will be evaluated according to 
criteria prescribed by the Secretary, and that will be in operation for 
no more than 4 years.". 
SEC. 1757. DEMONSTRATION PROJECTS FOR VEHICLE EXCLUSION LIMIT. 
Section 17 (7 U.S.C. 2026) is amended by adding at the end the 
following new subsection: 
"(h) The Secretary shall conduct a sufficient number of dem-
onstration projects to evaluate the effects, in both rural and urban 
areas, of including in financial resources under section 5(g) the fair 
market value of licensed vehicles to the extent the value of each 
vehicle exceeds $4,500, but excluding the value o
f
— 
"(1) any licensed vehicle that is used to produce earned 
income, necessary for transportation of an elderly or physically 
disabled household member, or used as the household's home; 
and 
"(2) one licensed vehicle used to obtain, continue, or seek 
employment (including travel to and from work), used to pursue 
employment-related education or training, or used to secure 
food or the benefits of the food stamp program.". 
SEC. 1758. DEMONSTRATION PROJECTS FOR AFDC/FOOD STAMP SIM-
PLIFICATION. 
Section 17 (7 U.S.C. 2026) (as amended by section 1757 of this Act) 
is further amended by adding at the end the following new subsec-
tion: 
"(iXD The Secretary may conduct four demonstration projects, in 
both urban and rural areas, under which households in which each 
member receives benefits under a State plan approved under part A 
of title IV of the Social Security Act (42 U.S.C. 601 et seq.) (hereafter 
in this subsection referred to as an 'eligible household') shall be 
issued monthly allotments following the rules and procedures of 
programs under part A of title IV of the Social Security Act, and 
without regard to the eligibility, benefit, and administrative rules 
established under this Act other than those terms and conditions 
specified under this subsection or established by the Secretary to 
ensure program integrity. 
"(2) In carrying out the demonstration projects, the Secretary 
shall ensure the following: 
"(A) The third sentence of section 3(i), subsections Ot)) and 
(dX2) of section 6, the first sentence of section 6(c), paragraphs 
(IXB), (3), (4), and (9) of section 11(e), and all applicable provi-
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3801 
sions of this Act dealing with the treatment of homeless individ-
uals and migrant and seasonal farm worker households shall 
apply. 
(B) Assistance under the food stamp program shall be fur-
nished to all eligible households who make application for 
assistance by providing any information that is needed by the 
State agency to determine the correct monthly allotment and 
that has not been provided as part of the household's applica-
tion for assistance under part A of title IV of the Social Security 
Act. 
"(C) Eligible households' monthly allotments shall be cal-
culated under section 8(a), except that a household's income 
shall be determined in accordance with subparagraphs (D) and 
(E). The allotments shall be provided retroactive to the date of 
application. 
"(D) For purposes of determining monthly allotments under 
this subsection, household income shall be the benefit provided 
under part A of title IV of the Social Security Act and the 
amount used to determine the household's benefit under such 
part (not including any amount disregarded for dependent care 
expenses), except that the amount shall be calculated without 
regard to section 402(aX7XC) of such Act (42 U.S.C. 602(aX7XC)) 
and shall not include nonrecurring lump-sum income and 
income deemed or allocated to the household under such part. 
"(E) In computing household income for purposes of determin-
ing monthly allotments, all eligible households shall be gdlowed 
the standard, earned income, excess shelter, and medical ex-
pense deductions provided under section 5(e) in lieu of any 
earned income disregards provided under section 402(aX8) of the 
Social Security Act (42 U.S.C. 602(aX8)). Alternatively, the Sec-
retary may approve demonstration projects under which house-
holds without earned income are allowed such standard, excess 
shelter, and medical expense deductions, and household income 
for households with earned income is computed using such 
deductions and the earned income disregards provided under 
section 402(aX8) of the Social Security Act to the extent that the 
Secretary determines they are consistent with the purposes of 
the demonstration projects required under this subsection. 
"(F) Uninterrupted food stamp assistance shall be provided to 
households who become ineligible to receive the assistance 
under this subsection but are determined otherwise eligible for 
food stamp assistance and to households receiving food stamp 
assistance other than under this subsection who are determined 
eligible under this subsection. 
"(G) Any other requirements and administrative procedures 
equivalent to those applicable under part A of title IV of the 
Social Security Act (42 U.S.C. 601 et seq.) may be used in 
implementing the demonstration projects required under this 
subsection, if the Secretary determines that the requirements or 
procedures further the purposes of this subsection and do not 
undermine program integrity. 
"(3) In establishing the projects, the Secretary shall solicit propos-
als from, and consult with, interested State and local agencies and 
shall consult with the Secretary of Health and Human Services on 
waivers of Federal rules under part A of title IV of the Social 
Security Act that would assist in carrying out the projects required 
under this subsection. 
104 STAT. 3802 
PUBLIC LAW 101-624—NOV. 28, 1990 
Reports. 
Rural areas^. 
Aged persons. 
Disadvantaged 
persons. 
Homeless. 
"(4) Not later than six months after termination of any project, 
the Secretary shall submit a report to the Committee on Agriculture 
of the House of Representatives and the Committee on Apiculture, 
Nutrition, and Forestry of the Senate eveduating the results of the 
demonstration projects established under this subsection, including 
evaluations of the effects on recipients and administrators.". 
SEC. 1759. GRANTS TO IMPROVE FOOD STAMP PARTICIPATION. 
Section 17 (7 U.S.C. 2026) (as amended by section 1758 of this Act) 
is further amended by adding at the end the following new subsec-
tion: 
"O'XIXA) Subject to the availability of funds specifically appro-
priated to carry out this subsection and subject to the other provi-
sions of this subsection, during each of fiscal years 1992 through 
1995, the Secretary shall make grants competitively awarded to 
public or private nonprofit organizations to fund food stamp out-
reach demonstration projects (hereinafter in this subsection referred 
to as the 'projects') and related evaluations in areas of the United 
States to increase participation by eligible low-income households in 
the food stamp program. The total amount of grants provided during 
a fiscal year may not exceed $5,000,000. Funds appropriated to carry 
out this subsection shall be used in the year during which the funds 
are appropriated. Not more than 20 percent of the funds appro-
priated to carry out this subsection shall be used for evaluations. 
"(B) The Secretary shall make a grant under this paragraph only 
to an entity that demonstrates to the Secretary that the entity is 
able to conduct the outreach functions described in this subsection. 
"(2) Outreach projects under this subsection shall be targeted 
toward members of rural, elderly, and homeless populations, low-
income working families with children, and non-English speaking 
minorities (hereinafter in this subsection collectively referred to as 
'target populations'). 
"(3)(A) The Secretary shall appoint an advisory panel (hereinafter 
in this subsection referred to as the 'panel') composed of representa-
tives of the target populations as well as individuals with expertise 
in the area of program evaluation. The panel shall not be subject to 
the Federal Advisory Committee Act (5 U.S.C. App. 2). 
"(B) The Secretary shall select recipients for grants, taking into 
consideration any recommendations from the panel concerning cri-
teria that should be used in selecting recipients, to carry out projects 
under this subsection based on the appropriateness of the methods 
proposed for the projects to reach target populations. Appropriate 
methods shsdl include— 
"(i) the production of electronic media campaigns (with the 
total amount allocated for the campaigns in the aggregate not 
to exceed 15 percent of the total amount of funds specified in 
paragraph (IXA)); 
"(ii) utilization of local outreach workers and volunteers; 
"(iii) development of solutions to transportation and access 
problems; 
"(iv) in-service training for those capable of referring house-
holds to the program; 
"(v) community presentations and education; 
"(vi) pre-screening assistance for progrsim eligibility; 
"(vii) individualized client assistance; 
"(viii) consultation and referral for benefit appeals; and 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3803 
"(ix) recruitment of authorized representatives for applicants 
unable to appear for certification or at authorized food stores. 
"(C) In selecting grant recipients, the Secretary shall take into 
consideration the ability of the applicants to produce useful data for 
evaluation purposes. 
"(D) In selecting grant recipients from among applicant public 
agencies, preference shall be given to those applicants that propose 
to involve nonprofit organizations in projects to be carried out with 
the grants. 
"(E) The Secretary shall provide at least one grant equal to 50 
percent of the cost of the development of outreach materials aimed 
at the general food stamp eligible population as well as the specific 
target populations, including written materials and public service 
announcements, so that the materials may be used or adopted by 
other grant recipients, as appropriate. To be eligible to receive any 
such grant, a recipient shall provide matching funds equal to 50 
percent of the cost of the development of materials described in the 
preceding sentence. In carr3dng out this subparagraph, the Sec-
retary shall give preference to applicants that demonstrate the 
ability to disseminate the materials through other public and pri-
vate nonprofit organizations. Not to exceed $500,000 of the funds 
provided under this subsection for any fiscal year shall be used for 
the grant. 
"(4XA) The Secretary shall evaluate a sufficient number of 
projects to be able to determine the effectiveness of the projects and 
the techniques employed by the projects with respect to— 
"(i) success in reducing barriers to participation; 
"(ii) increasing overall program participation 
including 
participation among target populations; 
"(iii) administrative effectiveness; 
"(iv) program efficiency; and 
"(v) adequacy of administrative resource levels to conduct the 
activities effectively. 
"(B) The Secretary shall provide an interim report on the results 
of the evaluation carried out under subparagraph (A) not later than 
1 year after a sufficient number of projects have begun and a final 
report not later than 3 years after a sufficient number of projects 
have begun to the Committee on Agriculture of the House of 
Representatives and the Committee on Agriculture, Nutrition, and 
Forestry of the Senate. 
"(C) The Secretary shall also examine and report on previous 
research regarding reasons for nonparticipation and effective meth-
ods to conduct outreach and to reduce barriers to participation. 
"(5) The Secretary shall— 
"(A) within 180 days after funds are appropriated, publish 
such notice as may be necessary to implement this subsection; 
"(B) accept proposals from organizations for projects under 
this subsection for 90 days following the date the notice is 
published; and 
"(C) begin to award grants under this subsection beginning no 
later than 180 days following the date the notice is published.". 
SEC. 1760. REAUTHORIZATION OF FOOD STAMP PROGRAM. 
Section 18 (7 U.S.C. 2027) is amended— 
(1) in subsection (aXl)— 
(A) by striking the first two sentences and inserting the 
following new sentence: "To carry out this Act, there are 
Reports. 
Reports. 
3»-194 O - 91 - 16 : QL 3 Part 5 
104 STAT. 3804 
PUBLIC LAW 101-624—NOV. 28, 1990 
authorized to be appropriated such sums as are necessary 
for each of the fiscal years 1991 through 1995."; and 
(B) in the last sentence, by striking "reductions in the 
value of allotments issued to households certified to partici-
pate in the food stamp program will be necessary under 
subsection (b) of this section" and inserting "supplemental 
appropriations will be needed to support the operation of 
the program through the end of the fiscal year"; and 
(2) in subsection (b), by striking "amount authorized in subsec-
tion (aXD". 
SEC. 1761. NUTRITION EDUCATION IMPROVEMENTS. 
Section 18(a) (7 U.S.C. 2027(a)) (as amended by section 1760 of this 
Act) is amended— 
(1) in the second sentence of subsection (aXD, by inserting 
before the period at the end the following: ", subject to para-
graph (3)"; and 
(2) by adding at the end the following new paragraph: 
"(3XA) Qf the amounts made available under the second sentence 
of paragraph (1), not more than $2,000,000 in any fiscal year may be 
used by the Secretary to make 2-year competitive grants that will— 
"(i) enhance interagency cooperation in nutrition education 
activities; and 
"(ii) develop cost effective ways to inform people eligible for 
food stamps about nutrition, resource management, and 
community nutrition education programs, such as the expanded 
food and nutrition education program. 
"(B) The Secretary shall make awards under this paragraph to 
one or more State cooperative extension services (as defined in 
section 1404(5) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3103(5))) who shall admin-
ister the grants in coordination with other State or local agencies 
serving low-income people. 
"(C) Each project shall include an evaluation component and shall 
develop an implementation plan for replication in other States. 
"(D) The Secretary shall report to the appropriate committees of 
Congress on the results of the projects and shall disseminate the 
results through the cooperative extension service system and to 
State human services and health department offices, local food 
stamp program offices, and other entities serving low-income house-
holds.". 
7 u s e 2028 note. 
SEC. 1762. NUTRITION ASSISTANCE PROGRAM IN PUERTO RICO. 
(a) PoucY OF CONGRESS.—It is the policy of Congress that citizens 
of the United States who reside in the Commonwealth of Puerto 
Rico should be safeguarded against hunger and treated on an equi-
table and fair basis with other citizens under Federal nutritional 
programs. 
(b) FUNDING LEVELS.—Subparagraph (A) of section 19(aXl) (7 
U.S.C. 2028(aXlXA)) is amended to read as follows: 
"(A) From the sums appropriated under this Act, the Secretary 
shall, subject to the provisions of this section, pay to the Common-
wealth 
of Puerto 
Rico 
$974,000,000 
for 
fiscal 
year 
1991, 
$1,013,000,000 for fiscal year 1992, $1,051,000,000 for fiscal year 1993, 
$1,091,000,000 for fiscal year 1994, and $1,133,000,000 for fiscal year 
1995, to finance 100 percent of the expenditures for food assistance 
Cooperatives. 
Grant programs. 
Disadvantaged 
persons. 
Inter-
governmental 
relations. 
Reports. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3805 
provided to needy persons and 50 percent of the administrative 
expenses related to the provision of the assistance.". 
(c) STUDY OF NUTRITIONAL NEEDS OF PUERTO RICANS.—The 
7 use 2028 note. 
Comptroller General of the United States shall conduct a study o
f
— 
(1) the nutritional needs of the citizens of the Commonwealth 
of Puerto Rico, including— 
(A) the adequacy of the nutritiongd level of the diets of 
members of households receiving Eissistance under the 
nutrition assistance program and other households not cur-
rently receiving the assistance; 
(B) the incidence of inadequate nutrition among children 
and the elderly residing in the Commonwealth; 
(C) the nutritional impact of restoring the level of nutri-
tional assistance provided to households in the Common-
wealth to the level of the Eissistance provided to other 
households in the United States; and 
(D) such other factors as the Comptroller General consid-
ers appropriate; and 
(2) the potential alternative means of providing nutritional 
assistance in the Commonwealth of Puerto Rico, including— 
(A) the impact of restoring the Commonwealth to the food 
stamp program; 
(B) increasing the benefits provided under the nutrition 
assistance program to the aggregate value of food stamp 
coupons that would be distributed to households in the 
Commonwealth if the Commonwealth were to participate in 
the food stamp program; and 
(C) the usefulness of adjustments to standards of eligi-
bility and other factors appropriate to the circumstances of 
the Commonwealth comparable to those adjustments made 
under the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.) for 
Alaska, Hawaii, Guam, and the Virgin Islands of the 
United States. 
(d) REPORT OF FINDINGS.—Not later than August 1, 1992, the 
Comptroller General shall submit a final report on the findings of 
the study required under subsection (c) to the Committee on Agri-
culture of the House of Representatives and the Committee on 
Agriculture, Nutrition, and Forestry of the Senate. 
SEC. 1763. AUTOMATED 
DATA 
PROCESSING 
AND 
INFORMATION 
RETRIEVAL SYSTEMS. 
(a) IN GENERAL.—The Act (7 U.S.C. 2011 et seq.) is amended by 
adding at the end the following new section: 
"SEC. 23. AUTOMATED 
DATA 
PROCESSING 
AND 
INFORMATION 
7 USC 2032. 
RETRIEVAL SYSTEMS. 
"(a) STANDARDS AND PROCEDURES FOR REVIEWS.— 
"(1) INITIAL REVIEWS.— 
"(A) IN GENERAL.—Not later than 1 year after the date of 
enactment of this section, the Secretary shall complete a 
review of regulations and standards (in effect on the date of 
enactment of this section) for the approval of an automated 
data processing and information retrieval system main-
tained by a State (hereinafter in this section referred to as a 
'system') to determine the extent to which the regulations 
and standards contribute to a more effective and efficient 
program. 
104 STAT. 3806 
PUBLIC LAW 101-624—NOV. 28, 1990 
Regulations. 
"(B) REVISION OF REGULATIONS.—The Secretary shall 
revise regulations (in effect on the date of enactment of this 
Act) to take into account the findings of the review con-
ducted under subparagraph (A). 
"(C) INCORPORATION OF EXISTING SYSTEMS.—The regula-
tions shall require States to incorporate all or part of 
systems in use elsewhere, unless a State documents that the 
design and operation of an alternative system would be less 
costly. The Secretary shall establish standards to define the 
extent of modification of the systems for which payments 
will be made under either section 16(a) or 16(g). 
"(D) IMPLEMENTATION.—Proposed systems shall meet 
standards 
established by the Secretary for timely 
implementation of proper changes. 
"(E) COST EFFECTIVENESS.—Criteria for the approval of a 
system under section 16(g) shall include the cost effective-
ness of the proposed system. On implementation of the 
approved system, a State shall document the actual cost 
and benefits of the system. 
"(2) OPERATIONAL REVIEWS.—The Secretary shsill conduct 
such reviews as are necessary to ensure that systems— 
"(A) comply with conditions of initial funding approvals; 
and 
"(B) adequately support program delivery in compliance 
with this Act and regulations issued under this Act. 
"(b) STANDARDS FOR APPROVAL OF SYSTEMS.— 
"(1) IN GENERAL.—After conducting the review required 
under subsection (a), the Secretary shall establish standards for 
approval of systems. 
"(2) IMPLEMENTATION.—A State shall implement the stand-
ards established by the Secretary within a reasonable period of 
time, as determined by the Secretary. 
"(3) PERIODIC COMPUANCE REVIEWS.—The Secretary shall con-
duct appropriate periodic reviews of systems to ensure compli-
ance with the standards established by the Secretary. 
"(c) REPORT.—Not later than October 1, 1993, the Secretary shall 
report to the Committee on Agriculture of the House of Representa-
tives and the Committee on Agriculture, Nutrition, and Forestry of 
the Senate on the extent to which State agencies have developed 
and are operating effective systems that support food stamp pro-
gram delivery in compliance with this Act and regulations issued 
under this Act.". 
(b) CONFORMING AMENDMENT.—The first sentence of section 11(g) 
(7 U.S.C. 2020(g)) is amended by inserting after "section 16(bXl)" the 
following: "or the requirements established pursuant to section 23". 
Subtitle B—Commodity Distribution Programs 
SEC. 1771. COMMODITY DISTRIBUTION PROGRAM; COMMODITY SUPPLE-
MENTAL FOOD PROGRAMS. 
(a) REAUTHORIZATION.—Section 4(a) of the Agriculture 
and 
Consumer Protection Act of 1973 (Public Law 93-86; 7 U.S.C. 612c 
note) is amended by striking "1986, 1987, 1988, 1989, and 1990" and 
inserting "1991 through 1995". 
(b) INFANTS AND CHILDREN.— 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3807 
(1) IN GENERAL.—Section 4(a) of the Agriculture 
and 
Consumer Protection Act of 1973 (Public Law 93-86; 7 U.S.C. 
612c note) is amended by inserting after "distribution to institu-
tions" the following: "(including hospitals and facilities caring 
for needy infants and children)". 
(2) CONFORMING AMENDMENT.—Section 416(aX3) of the Agri-
cultural Act of 1949 (7 U.S.C. 1431(aX3)) is amended by striking 
"hospitals, to the extent that needy persons are served" and 
inserting "hospitals and facilities, to the extent that they serve 
needy persons (including infants and children)". 
(c) ELDERLY.—The Agriculture and Consumer Protection Act of 
1973 (7 U.S.C. 612c note) is amended— 
(1) in section 4(a), by striking "supplemental feeding pro-
grams" and inserting "supplemental feeding programs serving 
women, infants, and children or elderly persons, or both,"; and 
(2) in section 5(f), by inserting after "additionsd sites for the 
program" the following: ", including sites that serve only 
elderly persons,". 
(d) ADMINISTRATIVE FUNDING.—Section 5(aX2) of such Act (7 
U.S.C. 612c note) is amended— 
(1) by striking "1986 through 1990" and inserting "1991 
through 1995"; and 
(2) by striking "15 per centum" and all that follows through 
the end of the subsection and inserting "20 percent of the 
amount appropriated for the commodity supplemental food pro-
gram.". 
(e) REFERRALS TO OTHER PROGRAMS.—Section 5 of such Act (7 
U.S.C. 612c note) is amended by adding at the end thereof the 
following new subsections: 
"(h) Each State agency administering a commodity supplemental Women. 
food program serving women, infants, and children shall— 
^ 
vfd**^ ^^^ 
"(1) ensure that written information concerning food stamps, ^ ^ ^^^' 
the program for aid to families with dependent children under 
part A of title IV of the Social Security Act (42 U.S.C. 601 et 
seq.), and the child support enforcement program under part D 
of title IV of the Social Security Act (42 U.S.C. 651 et seq.) is 
provided on at least one occasion to each adult who applies for 
or participates in the commodity supplemental food program; 
"(2) provide each local agency with materials showing the 
maximum income limits, according to family size, applicable to 
pregnant women, infante, and children up to age 6 under the 
medical assistance program established under title XIX of the 
Social Security Act (42 U.S.C. 1396 et seq.) (hereinafter referred 
to in this section as the 'medicaid program') which materials 
may be identical to those provided under section 17(eX3) of the 
Child Nutrition Act of 1966 (42 U.S.C. 1786(eX3)); and 
"(3) ensure that local agencies provide to pregnant, breast 
feeding and post partum women, and adults appl3dng on behalf 
of infants or children, who apply to the commodity supple-
mental food program, or who reapply to such program, written 
information about the medicaid program and referral to the 
program or to agencies authorized to determine presumptive 
eligibility for the medicaid program, if the individuals are not 
pmticipating in the medicaid program, 
"(i) Each State agency administering a commodity supplemental Aged. 
food program serving elderly persons shall ensure that written 
information is provided ,on at least one occasion to each elderly 
104 STAT. 3808 
PUBLIC LAW 101-624—NOV. 28, 1990 
participant in or applicant for the commodity supplemental food 
program for the elderly concerning— 
"(1) food stamps provided under the Food Stamp Act of 1977 (7 
U.S.C. 2011 et seq.); 
"(2) the supplemental security income benefits provided 
under title XVI of the Social Security Act (42 U.S.C. 1381 et 
seq.); and 
"(3) medical assistance provided under title XIX of such Act 
(42 U.S.C. 1396 et seq.) (including medical assistance provided to 
a qualified medicare beneficiary (as defined in section 1905(p) of 
such Act (42 U.S.C. 1396d(5))).". 
(f) ADVANCE WARNING FOR DECLINE IN NUMBER OF PERSONS 
SERVED UNDER PROGRAM.—Section 5 of such Act (7 U.S.C. 612c note) 
(as amended by subsection (e) of this section) is further amended by 
adding at the end the following new subsection: 
"(jXl) If the Secretary must pay a significantly higher than 
expected price for one or more tjrpes of commodities purchased 
under the commodity supplemental food program, the Secretary 
shall promptly determine whether the price is likely to cause the 
number of persons that can be served in the program in a fiscal year 
to decline. 
"(2) If the Secretary determines that such a decline would occur, 
the Secretary shall promptly notify the State agencies charged with 
operating the program of the decline and shall ensure that a State 
agency notify all local agencies operating the program in the State 
of the decline.". 
SEC. 1772. EMERGENCY FOOD ASSISTANCE PROGRAM. 
(a) SHORT TITLE.—The Temporary Emergency Food Assistance Act 
of 1983 (Public Law 98-8; 7 U.S.C. 612c note) is amended— 
(1) by striking the title and inserting the following new title: 
Emergency Food 
"TITLE II—EMERGENCY FOOD ASSISTANCE ACT OF 1983"; 
Assistance Act 
and 
of 1983. 
(2) in section 201, by striking "Temporary". 
(b) AVAILABILITY OF CCC COMMODITIES.—Section 202 of such Act (7 
U.S.C. 612c note) is amended by adding at the end the following new 
subsection: 
"(g)(1) Whenever commodities acquired by the Commodity Credit 
Corporation are made available for donation to domestic food pro-
grams in quantities that exceed Federal obligations, the Secretary 
shall give equal consideration to making donations of such commod-
ities to emergency feeding organizations participating in the pro-
gram authorized by this Act as is given to other commodity recipient 
agencies, taking into account the tjrpes and amounts of commodities 
available and appropriate for distribution to these organizations. 
"(2) In determining the commodities that will be made available to 
emergency feeding organizations under this Act, the Secretary may 
distribute commodities that become available on a seasonal or 
irregular basis.". 
(c) REAUTHORIZATION.—Section 204 of such Act (7 U.S.C. 612c note) 
is amended— 
(1) by striking subsections (a) and (b); 
(2) by redesignating subsections (c) and (d) as subsections (a) 
and (b), respectively; and 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3809 
(3) in subsection (aXl) (as so redesignated), by striking "ending 
September 30,1986, through September 30,1990," and inserting 
"1991 through 1995". 
(d) HANDUNG COSTS.—The second sentence of section 204(aX2) of 
such Act (7 U.S.C. 612c note) (as redesignated by subsection (cX2) of 
this section) is amended bv inserting after "handling," the following: 
"repackaging, processing,'. 
(e) ESTIMATES OF TYPES AND QUANTITIES OF AVAILABLE COMMOD-
ITIES.—Section 210 of such Act (7 U.S.C. 612c note) by striking 
subsection (c) and inserting the following new subsection: 
"(cXD The Secretary shall as early as feasible but not later than 
the beginning of each fiscal year, publish in the Federal Register an 
estimate of the types and quantities of commodities that the Sec-
retary anticipates are likely to be made available under the 
commodity distribution program under this Act during the fiscal 
year. 
"(2) The actual types and quantities of commodities made avail-
able by the Secretary under this Act may differ from the estimates 
made under paragraph (1).". 
(f) PROGRAM TERMINATION.—Section 212 of such Act (7 U.S.C. 612c 
note) is amended by striking "1990" and inserting "1995". 
(g) ADDITIONAL COMMODITIES.—Section 214 of such Act (7 U.S.C. 
612c note) is amended— 
(1) in subsection (a), by striking "fiscal years 1989 and 1990" 
and inserting "fiscal years 1991 through 1995"; and 
(2) by striking subsection (e) and inserting the following new 
suljsection: 
"(e) AMOUNTS.—To carry out this section there are authorized to 
be appropriated $175,000,000 for fiscal year 1991, $190,000,000 for 
fiscal year 1992, and $220,000,000 for each of the fiscal years 1993 
through 1995 to purchase, process, and distribute additional 
commodities under this section. Any amounts provided for fiscal 
years 1991 through 1995 shall be available only to the extent and in 
such amounts as are provided in advance in appropriations Acts.". 
(h) CONFORMING AMENDMENTS.— 
(1) Section 214 of such Act (7 U.S.C. 612c note) is amended by 
striking out subsection (k). 
(2) Section 4(c) of the Agriculture and Consumer Protection 
Act of 1973 (Public Law 93-86; 7 U.S.C. 612c note) is amended by 
striking "(7 U.S.C. 1446a-l) Temporary or the" and inserting "(7 
U.S.C. 1446a-l), or the". 
(3) Section 3(aX2XF) of the Commodity Distribution Reform 
Act and WIC Amendments of 1987 (Public Law 100-237; 7 
U.S.C. 612c note) is amended by striking clause (i) and inserting 
the following new clause: 
"(i) the emergency food assistance program 
established under the Emergency Food Assistance 
Act of 1983 (Public Law 100-237; 7 U.S.C. 612c 
note); and". 
(4) Section 13(3XE) of the Commodity Distribution Reform Act 
and WIC Amendments of 1987 (Public Law 100-237; 7 U.S.C. 
612c note) is amended by striking "Temporary". 
(5) Section 220(a) of the Hunger Relief Act of 1988 (Public Law 
100-435; 7 U.S.C. 612c note) is amended by striking "Tem-
porary" each place it appears. 
(6) Section 675(cX5) of the Community Services Block Grant 
Act (42 U.S.C. 9904(cX5)) is amended by striking "Temporary". 
Federal 
Register, 
publication. 
Appropriation 
authorization. 
104 STAT. 3810 
PUBLIC LAW 101-624—NOV. 28, 1990 
SEC. 1773. COMMODITY DISTRIBUTION REFORM. 
(a) CLARIFYING AMENDMENT.—Section 3(aX3XAXi) of the Commod-
ity Distribution Reform Act and WIC Amendments of 1987 (Public 
Law 100-237; 7 U.S.C. 612c note) is amended by inserting after 
"recipient agencies" the following: ", including food banks". 
O
t
)
) ADVANCE FUNDING FOR STATE OPTION CONTRACTS (SOCS).— 
Such Act (7 U.S.C. 612c note) is amended by inserting after section 3 
the following new section: 
7 u s e 612c note. 
"SEC. 3A. ADVANCE FUNDING FOR STATE OPTION CONTRACTS. 
"(a) IN GENERAL.—The Secretary may use the funds of the 
Commodity Credit Corporation and funds made available to carry 
out section 32 of the Act of August 24, 1935 (7 U.S.C. 612c) to pay for 
all or a portion of the cost, as agreed on with the State distribution 
agency, of food or the processing or packaging of food on behalf of a 
State distribution agency. 
"(b) REIMBURSEMENT.—In such cases, the State distribution 
agency shall reimburse the Secretary for the agreed on cost. Any 
funds received by the Secretary as reimbursement shall be deposited 
to the credit of the Commodity Credit Corporation or section 32 of 
the Act of August 24, 1935 (7 U.S.C. 612c), as appropriate. If the 
State distribution agency fails, within 150 days of delivery, to make 
the required reimbursement in full, the Secretary shall, within 30 
days, offset any outstanding amount against the appropriate 
account.". 
(c) COMMERCIAL WAREHOUSING AND DISTRIBUTION.—Section 3(d) of 
such Act (7 U.S.C. 612c note) is amended— 
(1) by striking "Before the expiration of the 270-day period 
beginning on the date of the enactment of this Act," and 
inserting the following: "On or before July 1,1992,"; and 
(2) by striking paragraphs (1), (2), and (3) and inserting the 
following new paragraphs: 
"(1) evaluate its system for warehousing and distributing 
donated commodities to recipient agencies designated in sub-
paragraphs (A) and (B) of section 13(3) (hereafter referred to in 
this Act as 'child and elderly nutrition program recipient 
agencies'); 
"(2) in the case of State distribution agencies that require 
payment of fees by child and elderly nutrition program recipi-
ent agencies for any aspect of warehousing or distribution, 
implement the warehousing and distribution system that pro-
vides donated commodities to such recipient agencies in the 
most efficient manner, at the lowest cost to such recipient 
agencies, and at a level that is not less than a basic level of 
services determined by the Secretary; 
"(3) in determining the most efficient and lowest cost system, 
use commercial facilities for providing warehousing and dis-
tribution services to such recipient agencies, unless the State 
applies to the Secretary for approval to use other facilities 
demonstrating that, when both direct and indirect costs in-
curred by such recipient agencies are considered, such other 
facilities are more efficient and provide services at a lower total 
cost to such recipient agencies;". 
(d) COMMODITY ACCEPTABILITY INFORMATION.—Section 3(fK2) of 
such Act (7 U.S.C. 612c note) is amended by striking "semiannually" 
and inserting "annually". 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3811 
(e) FOOD BANK PROJECTS.—Section 4 of such Act (7 U.S.C. 612c 
note) is amended— 
(1) in the section heading, by striking "DEMONSTRATION"; 
(2) in subsection (a), by striking "DEMONSTRATION PROJECT" 
and inserting "COMMUNITY FOOD BANKS"; 
(3) in subsection (d), by striking "and ending on December 31, 
1990"; and 
(4) by striking paragraph (e). 
(f) REPORT ON ENTITLEMENT COMMODITY PROCESSING.— 
^ use 6i2c note. 
(1) IN GENERAL.—Not later than January 1, 1992, the 
Comptroller General of the United States shall submit a report 
regarding processing of entitlement commodities used in child 
nutrition programs to the Committee on Agriculture of the 
House of Representatives and the Committee on Agriculture, 
Nutrition, and Forestry of the Senate. 
(2) CONSULTATION.—The Comptroller General shall consult 
with representatives of State and Federal commodity distribu-
tion authorities, local elected school authorities, local school 
food service authorities, and food processors with experience 
providing service to child nutrition programs regarding the 
scope and design of the report. 
(3) EVALUATION.—The report shall evaluate the extent to 
which— 
(A) processing of entitlement commodities occurs in the 
States; 
(B) governmental requirements for participation in the 
processing vary among States; and 
(C) entitlement commodity recipients are satisfied with 
access to and services provided through 
entitlement 
commodity processing. 
SEC. 1774. HUNGER PREVENTION PROGRAMS. 
(a) SOUP KITCHENS AND FOOD BANKS.—Section 110 of the Hunger 
Prevention Act of 1988 (Public Law 100-435; 7 U.S.C. 612c note) is 
(1) in subsection (a), by striking "1991" and inserting "1995"; 
and 
(2) in subsection 0))— 
(A) by redesignating paragraphs (4) through (8) as para-
graphs (5) through (9), respectively; and 
(B) by inserting after paragraph (3) the following new 
paragraph: 
"(4) FOOD PANTRY.—The term 'food pantry' means a public or 
private nonprofit organization that distributes food to low-
income and unemployed households, including food from 
sources other than the Department of Agriculture, to relieve 
situations of emergency and distress."; 
(3) by striking subsection (c) and inserting the following new 
subsection: 
"(c) AMOUNTS.— 
"(1) 1991 FISCAL YEAR.—During fiscal year 1991, the Secretary 
shall spend $32,000,000, to purchase, process, and distribute 
additional commodities to States for distribution to soup kitch-
ens and food banks within a given State that provide nutrition 
assistance to relieve situations of emergency and distress 
through the provision of food and meals to needy persons. 
104 STAT. 3812 
PUBLIC LAW 101-624—NOV. 28, 1990 
Appropriation 
"(2) 1992 THROUGH 1995 FISCAL YEARS.—There are authorized 
authorization. 
^^ ^ appropriated $40,000,000 for each of the fiscal years 1992 
through 1995 to purchase, process, and distribute additional 
commodities to States for distribution to soup kitchens and food 
banks within a given State that provide nutrition assistance to 
relieve situations of emergency and distress through the provi-
sion of food and meals to needy persons. Any amounts provided 
for fiscal years 1992 through 1995 shall be available only to the 
extent and in such amounts as are provided in advance in 
appropriations Acts. 
"(3) FOOD PANTRIES.—In instances in which food b£uiks do not 
operate within a given State, the State may distribute commod-
ities to food pantries."; and 
. 
(4) by striking subsection (j)-
OJ) GLEANING ASSISTANCE.—Section 111 of the Hunger Prevention 
Act of 1988 (7 U.S.C. 612c note) is amended to read as follows: 
"SEC. 111. GLEANING CLEARINGHOUSES. 
"(a) DEFINITION OF GLEANING.—For purposes of this section, the 
term 'to glean' means to collect unharvested crops from the fields of 
farmers, or to obtain agricultural products from farmers, processors, 
or retailers, in order to distribute the products to needy individuals, 
including unemployed and low-income individuals, and the term 
includes only those situations in which agricultural products and 
access to fields and facilities are made available without charge. 
"
O
t
>
) ESTABUSHMENT.— 
"(1) IN GENERAL.—The Secretary of Agriculture (hereafter in 
this section referred to as the 'Secretary) is authorized to assist 
States and private nonprofit organizations in establishing 
Gleaning Clearinghouses (hereafter in this section referred to as 
a 'Clearinghouse'). 
"(2) ASSISTANCE.—The Secretary is authorized to provide tech-
nical information and other assistance considered appropriate 
by the Secretary to encourage public and nonprofit private 
organizations to— 
"(A) initiate and carry out gleaning activities, and to 
assist other organizations and individuals to do so, through 
lectures, correspondence, consultation, or such other meas-
ures as the Secretary may consider appropriate; 
"(B) collect from public and private sources (including 
farmers, processors, and retailers) information relating to 
the kinds, quantities, and geographical locations of agricul-
tural products not completely harvested; 
"(C) gather, compile, and make available to public and 
nonprofit private organizations and to the public the statis-
tics and other information collected under this paragraph, 
at reasonable intervals; 
"(D) establish and operate a toll-free telephone line by 
which— 
"(i) farmers, processors, and retailers may report to a 
Clearinghouse for dissemination information regarding 
unharvested crops and agricultural products available 
for gleaning, and may also report how they may be 
contacted; 
"(ii) public and nonprofit organizations that wish to 
glean or to assist others to glean, may report to a 
Clearinghouse the kinds and amounts of products that 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3813 
are wanted for gleaning, and may also report how they 
may be contacted; 
"(iii) persons who can transport crops or products 
may report the availability of free transportation for 
gleaned crops or products; and 
"(iv) information about gleaning can be provided 
without charge by a Clearinghouse to the persons and 
organizations described in clauses (i), (ii), and (iii); 
"(E) prepare, publish, and make available to the public, at 
cost and on a continuing basis, a handbook on gleaning that 
includes such information and advice as may be useful in 
operating efficient gleaning activities and projects, includ-
ing information regarding how to— 
"(i) organize groups to engage in gleaning; and 
"(ii) distribute to needy individuals, including low-
income and unemployed individuals, food and other 
agricultural products that have been gleaned; or 
"(F) advertise in print, on radio, television, or through 
other media, as the Secretary considers to be appropriate, 
the services offered by a Clearinghouse under this section.". 
(c) CHEESE AND NONFAT DRY MILK.— 
(1) CONFORMING AMENDMENT.—Subsection (d) of section 5 of 
the Agriculture and Consumer Protection Act of 1973 (Public 
Law 93-86; 7 U.S.C. 612c note) is amended by inserting "(1)" 
after the subsection designation. 
(2) TRANSFER.—Section 130 of the Hunger Prevention Act of 
1988 (7 U.S.C. 612c note) is amended— 
(A) by redesignating such section as paragraph (2) of 
section 5(d) of the Agriculture and Consumer Protection 
Act of 1973 (7 U.S.C. 612c note); 
(B) by transfering and inserting such section immediately 
eifter paragraph (1) of section 5(d) of the Agriculture and 
Consumer Protection Act of 1973 (7 U.S.C. 612c note); and 
(C) to read as follows: 
"(2) Notwithstanding any other provision of law, the Commodity 
Credit Corporation shall, to the extent that the Commodity Credit 
Corporation inventory levels permit, provide not less than 9,000,000 
pounds of cheese and not less than 4,000,000 pounds of nonfat dry 
milk in each of the fiscal years 1991 through 1995 to the Secretary of 
Agriculture. The Secretary shall use such amounts of cheese and 
nonfat dry milk to carry out the commodity supplemental food 
program before the end of each fiscal year.". 
SEC. 1775. REPROCESSING AGREEMENTS WITH PRIVATE COMPANIES. 
(a) REAUTHORIZATION.—Section 1114(aX2XA) of the Agriculture 
and Food Act of 1981 (7 U.S.C. 1431e(2XA)) is amended by striking 
"1990" and inserting "1995". 
(b) PROCESSED END PRODUCTS.—Section 1114(aX2) of such Act is 
amended by adding the following new subparagraphs: 
"(C) Whenever commodities are made available to agencies pursu-
ant to section 311(aX4) of the Older Americans Act of 1965 (42 U.S.C. 
3030a(aX4)), the Secretary shall encourage access to processed end 
products containing the commodities when in the Secretary's judg-
ment it is cost effective. The requirements of this subparagraph 
shall be met in the most efficient and effective way possible. The 
Secretary may, among other alternatives, use direct purchase. State 
option contracts authorized under section 3A of the (Commodity 
Government 
publications. 
Disadvantaged 
persons. 
104 STAT. 3814 
PUBLIC LAW 101-624—NOV. 28, 1990 
Distribution Reform Act gind WIC Amendments of 1987 (Public Law 
100-237; 7 U.S.C. 612c note), State processing programs, and O^egin-
ning in fiscal year 1994) agreements with private companies oper-
ated as a part of the national commodity processing program. 
"(D) In each of fiscal years 1992 and 1993, the Secretary shall 
conduct a pilot project in not more than three States under which 
any commodity made available to agencies pursuant to section 
311(aX4) of the Older Americans Act of 1965 (42 U.S.C. 3030a(aX4)) 
that the Secretary determines to be appropriate for reprocessing is 
made available to the agencies as reprocessed end products. The 
reprocessing shall be performed pursuant to agreements with pri-
vate companies, at the expense of the agencies, and operated as part 
of the national commodity processing program established under 
subparagraph (A). In determining the appropriateness of the 
commodities to be reprocessed under the pilot project, the Secretary 
shall consider the common needs of the agencies and the availability 
of processors.". 
SEC. 1776. NUTRITION EDUCATION REAUTHORIZATION. 
(a) NUTRITION EDUCATION PROGRAM.—Section 1588(a) of the Food 
Security Act of 1985 (7 U.S.C. 3175e(a)) is amended by striking 
"$5,000,000" and all that follows through the end of the subsection 
and inserting "$8,000,000 for each of the fiscal years 1991 through 
1995.". 
(b) EXPANDED FOOD AND NUTRITION EDUCATION PROGRAM.—Sec-
tion 1425(c) of the National Agricultural Research, Extension, and 
7 use 3175. 
Teaching Policy Act of 1977 (7 U.S.C. 3125(c)) is amended by adding 
at the end the following new paragraph: 
Appropriation 
"(3) There is authorized to be appropriated to carry out the 
authorization. 
expanded food and nutrition education program established 
under section 3(d) of the Act of May 8, 1914 (38 Stat. 373, 
chapter 79; 7 U.S.C. 343(d)) and this section $63,000,000 for fiscal 
year 1991, $68,000,000 for fiscal year 1992, $73,000,000 for fiscal 
year 1993, $78,000,000 for fiscal year 1994, and $83,000,000 for 
fiscal year 1995.". 
SEC. 1777. NOTIFYING SHELTERS OF CHARITABLE INSTITUTIONS PRO-
GRAM. 
At least once in fiscal year 1991, when commodities are provided 
to a State by the Secretary of Agriculture for donations to charitable 
institutions the Secretary of Agriculture shall require the appro-
priate State agency to undertake efforts to inform shelters for the 
homeless and for battered women and children o
f
— 
(1) the availability of commodity donations to charitable 
institutions; 
(2) the criteria for qualifying to receive the donations; and 
(3) how application can be made to receive the donations. 
7 u s e 2011 note. 
SEC. 1778. WELFARE SIMPLIFICATION AND COORDINATION ADVISORY 
COMMITTEE. 
(a) APPOINTMENT AND MEMBERSHIP.— 
(1) ESTABLISMENT.—There is established an Advisory Commit-
tee on Welfare Simplification and Coordination (hereafter in 
this section referred to as the "Committee") consisting of not 
fewer than 7, nor more than 11, members appointed by the 
Secretary of Agriculture (hereafter in this section referred to as 
the "Secretary"), after consultation with the Secretary of 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3815 
Health and Human Services and the Secretary of Housing and 
Urban Development, and with the advice of State and local 
officials responsible for administering the food stamp program, 
cash and medical assistance programs for low-income families 
and individuals under the Social Security Act, and programs 
providing housing assistance to needy families and individuals, 
and representatives of recipients and recipient advocacy 
organizations associated with such programs. 
(2) QuAUFiCATiONS.—The members of the Committee shall be 
individuals who are familiar with the rules, goals, and limita-
tions of Federal food stamp, cash, medical, emd housing assist-
ance programs for low-income families and individuals, and 
may include individuals who have demonstrated expertise in 
evaluating the operations of and interaction among such pro-
grams as they affect administrators and recipients, persons who 
have experience in administering such programs at the Federal, 
State, or local level, and representatives of administrators and 
recipients affected by such programs, 
(b) PURPOSE.—It shall be the purpose of the Committee, in con-
sultation, where appropriate, with program administrators and rep-
resentatives of recipients— 
(1) to identify the significant policies implemented in the food 
stamp program, cash and medical assistance programs under 
the Social Security Act, and housing assistance programs 
(whether resulting from law, regulations, or administrative 
practice) that, because they differ substantially, make it dif-
ficult for those eligible to apply for and obtain benefits from 
more than one program and restrict the ability of administra-
tors of such programs to provide efficient, timely, and appro-
priate benefits to those eligible for more than one type of 
assistance, drawing, where appropriate, on previous efforts to 
coordinate and simplify such programs and policies; 
(2) to examine the major reasons for such different programs 
and policies; 
(3) to evaluate how and the extent to which such different 
programs and policies hinder, to a significant degree, the receipt 
of benefits from more than one program and substantially 
^ restrict administrators' ability to provide efficient, timely, and 
appropriate benefits; 
(4) to recommend common or simplified programs and policies 
(including recommendations for changes in law, regulations, 
and administrative practice and for policies that do not cur-
rently exist in such programs) that would substantially reduce 
difficulties in applying for and obtaining benefits from more 
than one program and significantly increase the ability of 
administrators of such programs to efficiently provide timely 
and appropriate assistance to those eligible for more than one 
type of assistance; and 
(5) to describe the major effects of such common or simplified 
programs and policies (including how such common or sim-
plified programs and policies would enhance or conflict with the 
purposes of such programs, how they would ease burdens on 
administrators and recipients, how they would affect program 
costs and participation, and the degree to which they would 
change the relationships between the Federal Government and 
the States in such programs) and the reasons for recommending 
such programs and policies (including reasons, if any, that 
104 STAT. 3816 
PUBLIC LAW 101-624—NOV. 28, 1990 
might be sufficient to override special rules derived fi*om the 
purposes of individual programs). 
(c) ADMINISTRATIVE SUPPORT.—The Secretary shall provide the 
Committee with such technical and other assistance, including sec-
retarial and clerical assistance, as may be required to carry out its 
functions. 
(d) REIMBURSEMENT.—Members of the Committee shall serve with-
out compensation but shall receive reimbursement for necessary 
travel and subsistence expenses incurred by such members in the 
performance of the duties of the Committee. 
(e) REPORTS.—Not later than July 1, 1993, the Committee shall 
prepare and submit, to the appropriate committees of Congress, the 
Secretary of Agriculture, the Secretary of Health and Human Serv-
ices, and the Secretary of Housing and Urban Development a final 
report, including recommendations for common or simplified pro-
grams and policies and the effects of and reasons for such programs 
and policies and may submit interim reports, including reports on 
common or simplified programs and policies covering less than the 
complete range of programs and policies under review, to the 
committees and such Secretaries as deemed appropriate by the 
Committee. 
42 use 1751 
SEC. 1779. SCHOOL LUNCH STUDIES. 
(a) IN GENERAL.—The Secretary of Agriculture shall determine— 
(1) the quantity of bonus commodities lost, by State, since the 
1987-88 school year; 
(2) what school food service authorities charge students for 
non-free or reduced price meals; and 
(3) trends in school participation and student participation, by 
State and for the United States. 
(b) ADDITIONAL STUDY.— 
(1) IN GENERAL.—The Secretary shall determine— 
(A) the cost to produce school lunches and breakfasts, 
including indirect and local administrative costs; 
(B) the reasons why schools choose not to participate in 
the National school lunch program; 
(C) the State costs incurred to administer the school 
programs; 
(D) why children eligible for free or reduced price meals 
do not apply for benefits or participate; and 
(E) other information considered necessary by the Sec-
retary. 
(2) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated to carry out this subsection, $1,000,000 for 
each of the fiscal years 1991 through 1993. 
(c) REPORTS.—The Secretary shall submit to Congress— 
(1) an interim report on the study required by subsection (a) 
not later than October 1,1991; 
(2) an interim report on the study required by subsection (b) 
not later than October 1,1992; and 
(3) a final report on the studies required by subsections (a) and 
(b) not later than October 1,1993. 
PUBLIC LAW 101-624—NOV. 28, 1990 
Subtitle C—Effective Dates 
104 STAT. 3817 
SEC. 1781. EFFECTIVE DATES. 
7 u s e 2012 note. 
(a) IN GENERAL.—Except as otherwise provided in subsection (b) 
and other provisions of this title, this title and the amendments 
made by this title shall become effective and implemented the 1st 
day of the month beginning 120 days after the publication of im-
plementing regulations. Such regulations shall be promulgated not Regulations. 
later than October 1,1991. 
Go) SPECIAL EFFECTIVE DATES.— 
(1) OCTOBER i, 1990.—The amendments made by sections 1721, 
1730, 1750, 1754, 1760(1XA), 1761, 1762, 1771(a), 1771(d), 1772(c), 
1772(f), 1772(g), and 1776 shall be effective on October 1, 1990. 
(2) DATE OF ENACTMENT.—The amendments made by sections 
1718, 1729, 1731, 1739, 1742, 1746, 1747, 1748, 1749, 1751, 1753, 
1755, 1756, 1757, 1758, 1759, 1760(1XB) and (2), 1763, 17710t)), 
1771(c), 1772(a), 1772(b), 1772(d), 1772(h), 1773,1774(aXl), 1774(b), 
1774(c), 1775(a), 1775(b), 1777, 1778, and 1779 shall become effec-
tive on the date of enactment of this Act. 
(3) APRIL i, I99i.—The amendments made by sections 1716, 
1722, and 1736(2) shall become effective and implemented the 
1st day of the month beginning 120 days after the promulgation 
of implementing regulations. Such regulations shall be promul- Regulations. 
gated not later than April 1,1991. 
(4) CATEGORICAL ELIGIBILITY.—The amendment made by sec-
tion 1714(2) shall become effective and implemented the 1st day 
of the month beginning 120 days after the promulgation of 
implementing regulations. Such regulations shall be promul- Regulations. 
gated— 
(A) in the case of a State general assistance program, not 
later than October 1,1991; and 
(B) in the case of a local general assistance program, not 
later than April 1,1992. 
TITLE XVIII—CREDIT 
Subtitle A—Farmers Home Administration 
Loans 
SEC. 1801. REFERENCES TO THE CONSOLIDATED FARM AND RURAL 
DEVELOPMENT ACT. 
Wherever in this subtitle an amendment or repeal is expressed in 
terms of an amendment to, or repeal of, a section or other provision, 
the reference shall be considered to be made to a section or other 
provision of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1921 et seq.), except to the extent otherwise specifically 
provided. 
SEC. 1802. SOIL AND WATER LOANS. 
(a) IN GENERAL.—Section 304 (7 U.S.C. 1924) is amended by adding 
at the end the following new subsection: 
"(dXl) Loans may also be made or insured under this subtitle for 
soil and water conservation and protection. Such loans may be made 
104 STAT. 3818 
PUBLIC LAW 101-624—NOV. 28, 1990 
to farm owners or tenants who are eligible borrowers under this 
subtitle for— 
"(A) the installation of conservation structures, including 
terraces, sod waterways, permanently vegetated stream borders 
and filter strips, windbreaks (tree or grass), shelterbelts, and 
living snow fences; 
"(B) the establishment of forest cover for sustained jdeld 
timber management, erosion control, or shelterbelt purposes; 
"(C) the establishment or improvement of permanent pasture; 
"(D) the conversion to and maintenance of sustainable agri-
cultural production systems, as described by Department tech-
nical guides and handbooks; 
"(E) the payment of costs of compljdng with section 1212 of 
the Food Security Act of 1985 (16 U.S.C. 3812); and 
"(F) other purposes consistent with plans for soil and water 
conservation, integrated farm management, water quality 
protection and enhancement, and wildlife habitat improvement. 
"(2) In making or insuring loans under this subsection, the Sec-
retary shall give priority to producers who use such loans to build 
conservation structures or establish conservation practices to 
comply with section 1212 of the Food Security Act of 1985 (16 U.S.C. 
3812). 
"(3) The Secretary shall not make or insure a loan under this 
section that exceeds the lesser of— 
"(A) the value of the farm or other security for such loan; or 
"(B) $50,000.". 
(b) LIMITED RESOURCE AUTHORIZATION.—Section 310D(a) (7 U.S.C. 
1934(a)) is amended— 
(1) by striking "clauses (1) through (5) of section 303(a) of this 
title" and inserting "paragraphs (1) through (5) of section 303(a), 
or subparagraphs (A) through (E) of section 304(dXl),"; 
(2) in paragraph (2), by striking "clauses" and inserting "para-
graphs"; 
(3) in paragraph (3), by striking "of this title"; and 
(4) in the second sentence, by striking "clauses" and inserting 
"paragraphs". 
SEC. 1803. INTEREST RATE ON FARM OWNERSHIP LOANS AND OPERATING 
LOANS MADE TO LIMITED RESOURCE BORROWERS. 
(a) FARM 
OWNERSHIP LOANS.—Subparagraph (B) of section 
307(a)(3) (7 U.S.C. 1927(a)(3)(B)) is amended to read as follows: 
"(B) Except as provided in paragraph (6), the interest rate on loans 
(other than guaranteed loans) under section 310D shall not be— 
"(i) greater than the sum of— 
"(I) an amount that does not exceed one-half of the 
current average market )deld on outstanding marketable 
obligations of the United States with maturities of 5 years; 
and 
"(II) an amount not exceeding 1 percent per year, as the 
Secretary determines is appropriate; or 
"(ii) less than 5 percent per year.". 
(b) OPERATING LOANS.—Paragraph (2) of section 316(a) (7 U.S.C. 
1946(a)(2)) is amended to read as follows: 
"(2) The interest rate on any loan (other than a guargmteed loan) 
to a low income, limited resource borrower under this subtitle shall 
not be— 
"(A) greater than the sum of— 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3819 
"(i) an amount that does not exceed one-half of the 
current average market )deld on outstanding marketable 
obligations of the United States with maturities of 5 years; 
and 
"(ii) an amount not exceeding 1 percent per year, as the 
Secretary determines is appropriate; or 
"(B) less than 5 percent per year.". 
SEC. 1804. GUARANTEE OF PAYMENT BY DEPARTMENT OF HAWAIIAN 
HOME LANDS. 
Section 310C(b) (7 U.S.C. 1933(b)) is amended by striking ", as 
amended" and inserting "or this title". 
SEC. 1805. DEBT SETTLEMENT. 
(a) IN GENERAL.—Section 331 (7 U.S.C. 1981) is amended— 
(1) in subsection (d)— 
(A) by striking "under any of its programs, as cir-
cumstances may require, to carry out" and inserting ", 
except for activities under the Housing Act of 1949"; and 
(B) by striking "incurred under this title" and inserting ", 
except for debt incurred under the Housing Act of 1949"; 
and 
(C) in paragraph (1), by inserting "with respect to farmer 
program loans," before "on terms"; and 
(2) in subsection (e)— 
(A) by inserting "except for activities conducted under 
the Housing Act of 1949," after "(e)"; 
(B) by striking "arising or"; 
(C) by striking "under this title" and inserting "by the 
Farmers Home Administration"; and 
(D) by striking "pursuant to this title" and inserting "by 
the Farmers Home Administration". 
(b) PAYMENT OF ACCRUED INTEREST.—Section 331 (7 U.S.C. 1981) is 
amended by striking subsection (h). 
(c) TECHNICAL AND CONFORMING AMENDMENTS.—Section 331 (7 
U.S.C. 1981) is amended— 
(1) by indenting the margin of subsections (f), (g), and (i) so as 
to align with the margin of subsection (e); 
(2) in subsection (f), by striking "Release" and inserting 
"release"; 
(3) in subsection (g), by striking "Obtain" and inserting 
"obtain"; 
(4) in subsection (i), by striking "Consent" and inserting 
"consent"; and 
(5) by redesignating subsections (i) and (j) as subsections (h) 
and (i), respectively. 
SEC. 1806. DOCUMENTATION FOR APPROVAL OF SECURITY TRANSFER 
Section 331(h)(2) (as amended and so redesignated by section 1805 
of this Act) is amended by inserting before the semicolon at the end 
the following: ", and shall document the consent of the Secretary for 
the transfer of the property of a borrower in the file of the bor-
rower". 
SEC. 1807. NOTICE OF LOAN SERVICE PROGRAMS. 
Section 331D (7 U.S.C. 1981d) is amended— 
104 STAT. 3820 
7 use 1981f. 
7 use 1981f 
note. 
PUBLIC LAW 101-624—NOV. 28, 1990 
(1) in subsection (bXl), by inserting "debt settlement pro-
grams," after "preservation loan service programs,"; and 
(2) in subsection (e), by striking "45" and inserting "60". 
SEC. 1808. UNDERWRITING FORMS AND STANDARDS. 
(a) IN GENERAL.—The Act is simended by inserting after section 
331E (7 U.S.C. 1981e) the following new section: 
"SEC. 331F. UNDERWRITING FORMS AND STANDARDS. 
"In the administration of this title, the Secretary shall, to the 
extent practicable, use underwriting forms, standards, practices, 
and terminology similar to the forms, standards, practices, and 
terminology used by lenders in the private sector.". 
OJ) REGULATIONS.—The Secretary of Agriculture shall not issue 
final regulations providing for the use of ratios and standards for 
determining the degree of potential loan risk under section 331F of 
the Consolidated Farm and Rural Development Act (as added by 
subsection (a) of this section), prior to the submission of the study 
and report on the effects of the regulations required by section 621 
of the Agricultural Credit Act of 1987 (7 U.S.C. 1989 note). 
SEC. 1809. COUNTY COMMITTEES. 
(a) 
FMHA-EUGIBLE 
BORROWERS.—Section 332(aX4) (7 U.S.C. 
1982(aX4)) is amended by inserting "be elected to" before "serve". 
(b) MAIUNG BALLOTS.—Section 332(a) is amended by adding at the 
end the following new paragraph: 
"(6) The Secretary shall provide for the mailing of ballots to 
persons eligible to vote for the election of county committee mem-
bers only if the mailing of the ballots coincides with the mailing of 
ballots under other programs administered by the Secretary.". 
(c) TRAINING.—Section 332 is amended by adding at the end the 
following new subsection: 
"(dXD The Secretary shall provide annual training of county 
committee members on the job responsibilities of the members 
under this title. 
"(2) The Secretary shall develop and provide a county committee 
training manual to £ill county committee members and shall update 
the manual in a timely manner to reflect changes in law or regula-
tions.". 
SEC. 1810. CERTIFICATION OF LOAN ELIGIBILITY. 
Section 333(b) (7 U.S.C. 19830?)) is amended to read as follows: 
"(bXlXA) for loans (other than under sections 306, 310B, 314, 
and 321(a)(2)), the county committee to certify in writing that 
the applicant meets the eligibility requirements for the loan, 
and has the character, industry, and ability to carry out the 
proposed operations, and will in the opinion of the county 
committee honestly endeavor to carry out the applicant's under-
takings and obligations; 
"(B) for loans under sections 306, 310B, 314, and 321(aX2), the 
recommendation of the county committee as to the making or 
insuring of the loan; and 
"(C) for all loans, the certification of eligibility under this 
subsection shall continue in effect for a period of not to exceed 2 
years as the committee may determine appropriate; and 
"(2) the Secretary may provide a procedure for appeal and 
review of any determination relating to a certification or rec-
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3821 
ommendation required to be made by the county committee, 
and for reversal or modification thereof should the facts war-
rant such action;". 
SEC. 1811. BUSINESS AND INDUSTRY AND COMMUNITY FACILITY LOANS. 
Section 333A(a) (7 U.S.C. 1983a(a)) is amended by adding at the 
end the following new paragraph: 
"(4)(A) Notwithstanding paragraph (1), each application for a loan 
or loan guarantee under section 310B(a), or for a loan under section 
306(a), that is to be disapproved by the Secretary solely because the 
Secretary lacks the necessary amount of funds to make the loan or 
guarantee shall not be disapproved but shall be placed in pending 
status. 
"(B) The Secretary shall retain the pending application and 
reconsider the application beginning on the date that sufficient 
funds become available. 
"(C) Not later than 60 days after funds become available regarding 
each pending application, the Secretary shall notify the applicant of 
the approval or disapproval of funding for the application.'. 
SEC. 1812. APPEALS. 
Section 333B(e) (7 U.S.C. 1983b(e)) is amended by adding at the end 
the following new paragraph: 
"(4) Except as provided in paragraph (3) and in the regulations of 
the Secretary governing the right of the Secretary to seek review of 
appeal decisions under this title, a county committee or employee of 
the Farmers Home Administration shall, on having a case returned 
pursugmt to the decision of a hearing officer. State director, or the 
director of the national appeals division, implement the decision 
within a reasonable period of time.". 
SEC. 1813. DISPOSITION OF SUITABLE PROPERTY. 
(a) HOLDING PERIOD.—The fourth sentence of section 335(cXl) (7 
U.S.C. 1985(c)(1)) is amended by striking "three years from the date 
of acquisition" and inserting "12 months from the date first pub-
lished under paragraph (2)(D)". 
(b) RANDOM SELECTION AMONG EQUALLY QUALIFIED APPUCANTS.— 
Section 335 (7 U.S.C. 1985) is amended— 
(1) in subsection (cX2XC), by inserting before the semicolon the 
following: ", except that if the committee determines that two 
or more applicants meet the loan eligibility criteria, the 
committee shall select between the qualified applicemts on a 
random basis"; and 
(2) in subsection (eX4XC)— 
(A) by striking "shall, by majority vote," and inserting 
"shall randomly ; and 
(B) by inserting before the period at the end the following: 
", in accordance with subsection (cX2XB)(iii)". 
(c) PROPERTY SUBJECT TO BORROWER PURCHASE OR LEASE OPTION.— 
Section 335(eXlXAXi) (7 U.S.C. 1985(eXl)(AXi)) is amended by strik-
ing "real property" and inserting "real farm or ranch property 
(including the principal residence of the borrower)". 
(d) RIGHT OF FIRST REFUSAL.—Section 335(eXlXA) (7 U.S.C. 
1985(eXlXA)) is amended by adding at the end the following new 
clause: 
"(iv) In the case of real property described in clause (i) that was 
acquired by the Secretary before January 6, 1988, that is (or has 
104 STAT. 3822 
PUBLIC LAW 101-624—NOV. 28, 1990 
been at any time during the 12-month period preceding the date of 
enactment of this clause) under lease to a person described in 
subparagraph (C), and that has not been conveyed (or contracted to 
be conveyed) by the Secretary prior to the date of enactment of this 
clause, the Secretary shall, during the 30-day period following the 
date of enactment of this clause, make the person an offer, to be 
held open for a period of 90 days, to purchase the property on the 
same terms and conditions that such offers are made in the case of 
property coming into inventory on or after the date of enactment of 
this clause.". 
(e) QUALIFIED BEGINNING FARMERS OR RANCHERS.— 
(1) SUITABLE FARMLAND.—Section 335(cX2) (7 U.S.C. 1985(cX2)) 
is amended— 
(A) by redesignating subparagraphs (A), (B), (C), and (D) 
as clauses (i), (ii), (iii), and (iv), respectively; and 
(B) by striking all that precedes clause (i) (as so redesig-
nated by subparagraph (A) of this paragraph) and inserting 
the following: 
"(2XA) Notwithstanding any other provision of law, the Secretary 
shall sell suitable farmland administered under this title to persons 
in the following order: 
"(i) Qualified beginning farmers or ranchers (as defined 
pursuant to section 343(a)(8)), as of the time immediately sifter 
such contract for sale or lease is entered into, as determined by 
the county committee. 
"(ii) Operators, as of the time immediately after such contract 
for sale or lease is entered into, of not larger than family sized 
farms, as determined by the county committee. 
"(B) In selling such land, the county committee shall—". 
(2) 
OTHER 
PROPERTY.—Section 
335(eXlXC) 
(7 
U.S.C. 
1985(eXlXC)) is amended— 
(A) by redesignating clause (iv) as clause (v); and 
(B) by inserting after clause (iii) the following new clause: 
"(iv) Qualified beginning farmers or ranchers (as defined 
pursuant to section 343(aX8)) as of the time immediately after 
such contract for sale or lease is entered into, of not larger than 
family-sized farm or ranching operations.". 
(f) INDIAN LAND IN INVENTORY.—Section 335(eXlXD) (7 U.S.C. 
1985(eXl)(D)) is amended by adding at the end the following new 
clause: 
"(x) This subparagraph shall apply to all lands in the land inven-
tory established under this title (as of the date of enactment of this 
clause) that were (immediately prior to such date) owned by an 
Indian borrower-owner described in clause (i) and that are situated 
within £ui Indian reservation (as defined in clause (ii)), regardless of 
the date of foreclosure or acquisition by the Secretary. The Sec-
retary shall afford an opportunity to a tribal member, an Indian 
corporate entity, or the tribe to purchase or lease the real property 
as provided in clause (iii). If the right is not exercised or no expres-
sion of intent to exercise such right is received within 180 days after 
the date of enactment of this clause, the Secretary shall transfer the 
real property to the Secretary of the Interior as provided in clause 
(v).". 
(s) OFFERING PRICE —~~ 
(1) 
IN 
GENERAL.—Section 
335(cX2XBXii) 
(7 
U.S.C. 
1985(cX2XBXii)), as amended by subsection (e)(1) of this section, 
is amended to read as follows: 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3823 
"(ii) offer such land— 
"(I) for sales pursuant to subsection (eXlXC), at a price not 
greater than that which reflects the appraised market 
value of such farmland; and 
"(II) for all other sales, at a price not greater than that 
which reflects the fair market value of such land as deter-
mined by bids after advertising or by negotiated sale;". 
(2) CONFORMING AMENDMENTS.—Scction 885(eX4) (7 U.S.C. 
1985(eX4)) is amended— 
(A) by striking subparagraph (B); and 
(B) by redesignating subparagraph (C) as (B). 
(h) CONSERVATION EASEMENTS ON WETLANDS ON F M H A INVENTORY 
PROPERTY.— 
(1) IN GENERAL.—Section 335 (7 U.S.C. 1985) is amended by 
adding at the end the following new subsection: 
"(gXD Subject to paragraphs (2) through (5), in the disposal of real 
property under this section, the Secretary shall establish perpetugd 
wetland conservation easements to protect and restore wetlands or 
converted wetlands that exist on inventoried property, as deter-
mined by the Secretary in accordance with title XII of the Food 
Security Act of 1985 (16 U.S.C. 3801 et seq.). 
"(2) In establishing the wetland conservation easements on land 
that is considered to be cropland as of the date of enactment of this 
subsection, the Secretary shall avoid, to the extent practicable, an 
adverse impact on the productivity of the croplands, as provided in 
this subsection. 
"(3) In order to avoid the adverse impact, the Secretary shall— 
"(A) not establish the wetland conservation easements with 
respect to wetlands that were converted prior to December 23, 
1985, and that have been in cropleuid use, as determined by the 
Secretary, in excess of 10 percent of the existing cropland 
available for production of agricultural commodities on the 
particular parcel of inventoried property; 
"(B) not establish the wetland conservation easements with 
respect to wetlands that have been frequently planted to agri-
cultural commodities and wetlands described in subparagraph 
(A), in excess of 20 percent of the existing cropland available for 
production of sigricultural commodities on the particular parcel 
of inventoried property; 
"(C) ensure that the buffer area adjacent to the wetland is 
generally not more than 100 feet in average width; and 
"(D) ensure that access to other portions of the property for 
farming and other uses is provided. 
"(4) The wetland conservation easements shall be placed on wet-
lands that have a history of hajdng and grazing, as determined by 
the Secretary, except that in no case shall the quantity of the 
wetland subject to the easements exceed 50 percent of the existing 
forage lands on the parcel of inventoried property. All haying and 
grazing practices on the wetlands (including the timing and inten-
sity of ha5dng and grazing) shall conform to forage management 
standards designed to protect wetlands. 
"(5) If, despite the limitations contained in paragraph (3), wetland 
conservation easements established under paragraph (1) would pre-
vent a particular parcel of inventoried property that is to be sold or 
leased to a borrower described in clause (i), (ii), or (iii) of subsection 
(eXlXC), or to a borrower who is a beginning farmer or rancher, from 
104 STAT. 3824 
PUBLIC LAW 101-624—NOV. 28, 1990 
being a marketable agricultural production unit that is comparable 
to the parcel as acquired, the Secretary may— 
"(A) establish wetland conservation easements on wetland 
that was converted prior to December 23, 1985, in a quantity 
that is less than 10 percent of the existing croplands available 
for production of agricultural commodities on the particular 
parcel; gind 
"(B) if the reduction provided in subparagraph (A) is not 
applicable, or is not sufficient to ensure that the particular 
parcel would be a marketable agricultural production unit, 
amend the wetland conservation easements established on the 
wetlands that have been frequently planted to agricultural 
commodities to permit the production of agriculture^ commod-
ities (consistent with title XII of the Food Security Act of 1985) 
on the wetlands, to the extent necessary to maintain the parcel 
as a marketable agricultural production unit. 
"(6) The Secretary shall provide prior written notification to a 
borrower considering preservation loan servicing that a wetlands 
conservation easement may be placed on land for which the bor-
rower is negotiating a lease option. 
"(7) The appraised value of the farm shall reflect the value of the 
land due to the placement of wetland conservation easements. 
"(8) Notwithstanding the limitations described under paragraphs 
(3) and (4), the limitations may be voluntarily, knowingly waived by 
any person with respect to real property described in paragraph (3) 
or (4).". 
(2) Study and report on appropriate ceilings on the establish-
ment of wetland conservation easements on existing cropland.— 
(A) STUDY.—Not later than January 31, 1991, the 
Administrator of the Farmers Home Administration shall 
study the appropriateness of the maximum percentages, in 
subparagraphs (A) and (B) of section 335(gX3) of the Consoli-
dated Farm and Rural Development Act, of the existing 
cropland available for production of agricultural commod-
ities with respect to which perpetual wetland conservation 
easements are to be established under such section, taking 
into account— 
(i) the amount of land in the inventory of the Farm-
ers Home Administration that may become subject to 
such an easement; and 
(ii) the costs and benefits associated with the making 
of such inventory land subject to such an easement. 
(B) REPORT.—Not later than January 31, 1991, the 
Administrator of the Farmers Home Administration shall 
prepare 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 
containing the recommendations of the Administrator as to 
the appropriate maximum percentages referred to in 
subparagraph (A) of this paragraph. 
SEC. 1814. DEFINITIONS. 
Section 343(a) (7 U.S.C. 1991(a)) is amended— 
(1) by striking "and" at the end of paragraph (6); and 
(2) by inserting before the period at the end the following: 
", (8) the term 'beginning farmer or rancher' means such term as 
defined by the Secretary, (9) the term 'direct loan' means a loan 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3825 
made or insured from funds in the account created by section 
309, and (10) the term 'farmer program loan' means a farm 
ownership loan (FO) under section 303, operating loan (OL) 
under section 312, soil and water loan (SW) under section 304, 
recreation loan (RL) under section 304, emergency loan (EM) 
under section 321, economic emergency loan (EE) under section 
202 of the Emergency Agricultural Credit Adjustment Act (title 
II of Public Law 95-334), economic opportunity loan (EO) under 
the Economic Opportunity Act of 1961 (42 U.S.C. 2942), softwood 
timber loan (ST) under section 1254 of the Food Security Act of 
1985, or rural housing loan for farm service buildings (RHF) 
under section 502 of the Housing Act of 1949". 
SEC. 1815. EXTENSION OF ELIGIBILITY FOR CONSERVATION EASEMENTS; 
ASSISTANCE TO BORROWERS. 
Section 349 (7 U.S.C. 1997) is amended— 
(1) in subsection (c)— 
(A) in the matter preceding paragraph (1), by striking 
"such property"; 
(B) in paragraph (1), by inserting "such property" before 
"is"; 
(C) in paragraph (2), by inserting "such property" before 
"is"; 
(D) in paragraph (3XAXi), by inserting "such property" 
before "secures"; 
(E) by amending clause (ii) of paragraph (3XA) to read as 
follows: 
"(ii) such eeisement better enables a qualified borrower to 
repay the loan in a timely manner, as determined by the 
Secretary; or"; 
(F) in paragraph (3XB), by inserting "such property" 
before "is"; and 
(G) in paragraph (4), by inserting "such property" before 
"was"; and 
(2) by amending subsection (e) to read as follows: 
"(eXl) Subject to paragraph (2), the Secretary may purchase any 
such easement from the borrower— 
"(A) in the case of a borrower to whom the Secretary has 
made one or more outstanding loans under laws administered 
by the Farmers Home Administration, by canceling that part of 
the aggregate amount of such outstanding loans that bears the 
same ratio to such aggregate amount as the number of acres of 
the real property of the borrower that are subject to the ease-
ment bears to the aggregate number of acres securing such 
loans; or 
"(B) in any other case, by treating as prepaid that part of the 
principal amount of a new loan to the borrower issued and held 
by the Secretary under a law administered by the Farmers 
Home Administration that bears the same ratio to such prin-
cipal amount as the number of acres of the real property of the 
borrower that are subject to the easement bears to the eiggre-
gate number of acres securing the new loan. 
"(2) The amount so canceled or treated as prepaid pursuant to 
paragraph (1) shall not exceed— 
"(A) in the case of a delinquent loan, the value of the land on 
which the easement is acquired or the difference between the 
104 STAT. 3826 
PUBLIC LAW 101-624—NOV. 28, 1990 
amount of the outstanding loan secured by the land and the 
value of the land, whichever is greater; or 
"(B) in the case of a nondelinquent loan, 33 percent of the 
amount of the loan secured by the land."; and 
(9) by striking subsection (h). 
SEC. 1816. DEBT RESTRUCTURING AND LOAN SERVICING. 
Regulations. 
(a) EuGiBiLiTY FOR RESTRUCTURING.—Section 353(bXl) (7 U.S.C. 
2001(bXl)) is amended by inserting before the semicolon the follow-
ing: ", except that the regulations shall require that, if the value of 
the assets calculated under subsection (cX2XAXii) that may be re-
alized through liquidation or other methods would produce enough 
income to make the delinquent loan current, the borrower shall not 
be eligible for assistance under subsection (a)". 
(b) CHANGES IN NET RECOVERY VALUE CALCULATION.— 
(1) INCLUSION OF CERTAIN NONESSENTIAL UNSECURED ASSETS OF 
THE BORROWER IN THE RECOVERY V A L U E . — S e c t i o n 353(cX2XA) (7 
U.S.C. 2001(cX2XA)) is amended to read as follows: 
"(AXi) the amount of the current appraised value of the 
interests of the borrower in the property securing the loan; 
plus 
"(ii) the value of the interests of the borrower in all other 
assets that are— 
"(I) not 
essential 
for 
necessary 
family 
living 
expenses; 
"(II) not essential to the operation of the farm; and 
"(III) not exempt from judgment creditors or in a 
bankruptcy action under Federal or State law; less". 
(2) INCLUSION OF SECURITY PROPERTY NOT POSSESSED BY THE 
B
O
R
R
O
W
E
R IN THE RECOVERY VALUE.—Section 353(cX2) (7 U.S.C. 
2001(cX2)) is amended— 
(A) in subparagraph (BXiv), by striking "costs." and 
inserting "costs; plus"; and 
(B) by adding at the end the following new subparagraph: 
"(C) the value, as determined by the Secretary, of any 
property not included in subparagraph (AXi) if the property 
is specified in any security agreement with respect to such 
loan and the Secretary determines that the value of such 
property should be included for purposes of this section.". 
(c) DEBT SERVICE MARGIN.—Section 353(cX3) (7 U.S.C. 2001(cX3)) is 
amended by adding at the end the following new subparagraph: 
"(C) DEBT SERVICE MARGIN.— 
"(i) ASSUMPTION.—For the purpose of assessing under 
subparagraph (A) the ability of a borrower to meet debt 
obligations and continue farming operations, the Sec-
retary shall assume that the borrower needs up to 105 
percent of the amount indicated for payment of debt 
obligations. 
"(ii) AVAILABLE INCOME.—If an amount up to 105 
percent of the debt pa3mients of the borrower has been 
earmarked for such pajnnents, the Secretary shall con-
sider the income of the borrower to be adequate to meet 
the debt obligations of the borrower.". 
(d) 
DEADUNE 
FOR 
RESTRUCTURING 
CALCULATIONS.—Section 
353(cX4) (7 U.S.C. 2001(cX4)) is amended by striking "60" and insert-
ing"90". 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3827 
(e) G
r
O
O
D FAITH REQUIREMENT FOR LEASEBACK/BUYBACK EUGI-
BiLiTY.—Section 335(eXl) (7 U.S.C. 1985(eXl)) is amended— 
(1) in subparagraph (AXi), by inserting ", if such borrower-
owner has acted in good faith with the Secretary, as defined in 
regulations issued by the Secretary, in connection with such 
loan" before the period at the end; and 
(2) in subparagraph (CXi), by inserting ", if such borrower-
owner has acted in good faith with the Secretary, as defined in 
regulations issued by the Secretary, in connection with the loan 
of such borrower-owner for which such property served as 
security" before the period at the end. 
if) TERMINATION OF LOAN OBIJGATIONS.—Paragraph (6) of section 
353(c) (7 U.S.C. 2001(cX6)) is amended to read as follows: 
"(6) TERMINATION OF LOAN OBLIGATIONS.— 
"(A) REQUIRED CONDITIONS.— 
"(i) IN GENERAL.—Except as provided in subpara-
graph (B), the obligations of a borrower to the Sec-
retary under a restructured loan shall terminate if— 
"(I) the borrower satisfies the requirements of 
paragraphs (1) and (2) of subsection (b); 
"(II) the value of the restructured loan is less 
than the recovery value; and 
"(III) within 90 days after receipt of the notifica-
tion described in paragraph (4XB), the borrower 
pays (or obtains third-party financing to pay) the 
Secretary an amount equal to the recovery value, 
"(ii) LIMITED APPLICABILITY OF GOOD FAITH REQUIRE-
MENT.—Clause (iXD shall not apply to any offer of net 
recovery buyout made by the Secretary under this 
section before the date of enactment of this paragraph, 
unless the Secretary, before such date, determined that 
the borrower involved did not act in good faith with 
respect to the loan. 
"(B) RECAPTURE.— 
"(i) AUTHORITY TO REQUIRE BORROWER TO ENTER INTO 
AGREEMENT BEFORE TERMINATING LOAN OBUGATIONS.— 
"(I) IN GENERAL.—The Secretary may require, £is 
a condition of the termination of loan obligations 
under this paragraph, that the borrower enter into 
an agreement with the Secretary providing that if 
the borrower sells or otherwise conveys the real 
property used to secure such loan within 10 years 
after the date of such agreement, and realizes a 
gain on such sale or conveyance over the amount of 
the recovery value of the loan, then the Secretary 
may recapture part or all of the difference between 
the recovery value of the loan and the fair market 
value (on the date of such sale or conveyance) of 
the property securing the loan. 
"(II) 
LIMITATION ON RECAPTURE AMOUNT.—The 
agreement described in subclause (I) shall not pro-
vide for recapture of an amount that exceeds the 
difference between such recovery value and the 
outstanding balance of principal and interest owed 
on the loan immediately prior to the termination 
of any loan obligations under this paragraph. 
104 STAT. 3828 
PUBLIC LAW 101-624—NOV. 28, 1990 
"(ii) TREATMENT OF INTRAFAMILY TRANSFERS.—For 
purposes of clause (i)(I), transfer of title to a property, 
on the death or retirement of the borrower, to a spouse 
or child of the borrower who is actively engaged in 
farming on the property shall not be treated as a sale 
or conveyance.", 
(g) APPRAISALS.—Section 353(c) (7 U.S.C. 2001(c)) is amended by 
adding at the end the following new paragraph: 
"(7) NEGOTIATION OF APPRAISAL.— 
"(A) IN GENERAL.—In making a determination concerning 
restructuring under this subsection, the Secretary, at the 
request of the borrower, shall enter into negotiations 
concerning appraisals required under this subsection with 
the borrower. 
"(B) INDEPENDENT APPRAISAL,—If the borrower, based on 
a separate current appraisal, objects to the decision of the 
Secretary regarding an appraisal, the borrower and the 
Secretary shall mutually agree, to the extent practicable, 
on an independent appraiser who shall conduct another 
appraisal of the borrower's property. The average of the 
two appraisals that are closest in value shall become the 
final appraisal under this parsigraph. The borrower and the 
Secretary shall each pay one-half of the cost of the 
independent appraisal.", 
(h) ADDITIONAL PROVISIONS.—Section 353 is amended by adding at 
the end the following new subsections: 
"(1) PARTIAL LIQUIDATIONS.—If partial liquidations are performed 
(with the prior consent of the Secretary) as part of loan servicing by 
a guaranteed lender under this title, the Secretary shall not require 
full liquidation of a delinquent loan in order for the lender to be 
eligible to receive payment on losses. 
"(m) DISPOSITION OF NORMAL INCOME SECURITY.—For purposes of 
subsection (bX2) of this section, and subparagraphs (AXi) and (CXi) of 
section 335(eXlXA), if a borrower— 
"(1) disposed of normal income security prior to October 14, 
1988, without the consent of the Secretary; and 
"(2) demonstrates that— 
"(A) the proceeds were utilized to pay essential household 
and farm operating expenses; and 
"(B) the borrower would have been entitled to a release of 
income proceeds by the Secretary if the regulations in effect 
on the date of enactment of this subsection had been in 
effect at the time of the disposition, 
the Secretary shall not consider the borrower to have acted without 
good faith to the extent of the disposition. 
"(n) ONLY 1 WRITE-DOWN OR NET RECOVERY BUY-OUT PER BOR-
ROWER F
O
R A LOAN MADE AFTER JANUARY 6,1988.— 
"(1) IN GENERAL.—The Secretary may provide for any one 
borrower not more than 1 write-down or net recovery buy-out 
under this section with respect to all loans made to the bor-
rower after January 6,1988. 
"(2) Special rule.—For purposes of paragraph (1), the Sec-
retary shall treat any loan made on or before January 6, 1988, 
with respect to which a restructuring, write-down, or net recov-
ery buy-out is provided under this section after such date, as a 
loan made after such date. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3829 
7 u s e 2006a. 
Government 
contracts. 
"(o) LIQUIDATION OF ASSETS.—The Secretary may 
not 
use 
the 
authority provided by this section to reduce or terminate any por-
tion of the debt of the borrower that the borrower could pay through 
the liquidation of assets (or through the payment of the loan value 
of the assets, if the loan value is greater than the liquidation value) 
described in subsection (cX2XAXii). 
"(p) LIFETIME LIMITATION ON DEBT FORGIVENESS PER BORROWER.— 
The Secretary may provide not more than $300,000 in principal and 
interest forgiveness under this section per borrower.". 
SEC. 1817. DISTRIBUTION OF FUNDS ON INDIAN RESERVATIONS. 
Section 355(b) (7 U.S.C. 355(b)) is amended by adding at the end ^ USC 2003. 
the following new paragraph: 
"(3) INDIAN RESERVATIONS.—In distributing loan funds in 
counties within the boundaries of an Indian reservation, the 
Secretary shall allocate the funds on a reservation-wide basis.". 
SEC. 1818. BORROWER TRAINING. 
(a) IN GENERAL.—Subtitle D (7 U.S.C. 1981 et seq.) is amended by 
adding at the end the following new section: 
"SEC. 359. BORROWER TRAINING. 
"(a) IN GENERAL.—The Secretary shall enter into contracts to 
provide educational training to all borrowers of farmer program 
direct and guaranteed loans made under this title in financial and 
farm management concepts associated with commercial farming. 
"(b) CONTRACT.— 
"(1) IN GENERAL.—The Secretary may contract with State or 
private providers of farm management and credit counseling 
services (including a community college, the extension service of 
a State, a State department of agriculture, or a nonprofit 
organization) to carry out this section. 
"(2) CONSULTATION.—The Secretary may consult with the 
chief executive officer of a State concerning the identity of the 
contracting organization and the process for contracting. 
"(c) ELIGIBIUTY FOR LOANS.— 
"(1) IN GENERAL.—Subject to paragraph (2), to be eligible to 
obtain a direct or guaranteed loan under this title, a borrower 
must obtain management assistance under this section, appro-
priate to the management ability of the borrower (as 
determined by the appropriate county committee established 
pursuant to section 332, during the determination of eligibility 
for the loan). 
"(2) LOAN CONDITIONS.—The need of a borrower who satisfies 
the criteria set out in section 302(aX2) or 311(aX2) for manage-
ment assistance under this section shall not be cause for denial 
of eligibility of the borrower for a direct or guaranteed loan 
under this title. 
"(d) GUIDELINES AND CURRICULUM.—The Secretary shall issue Regulations. 
regulations establishing guidelines and curriculum for the borrower 
training program established under this section. 
"(e) PAYMENT.—A borrower shall pay for training received under 
this section, and may use funds from operating loans made under 
subtitle B to pay for the training. 
"(f) WAIVERS.—The Secretary may waive the requirements of this 
section for an individual borrower on a determination by the county 
104 STAT. 3830 
PUBLIC LAW 101-624—NOV. 28, 1990 
committee that the borrower demonstrates adequate knowledge in 
areas described in this section.". 
(b) OPERATING LOAN PURPOSES.—Section 312(a) (7 U.S.C. 1942(a)) is 
amended— 
(1) by striking "and" at the end of paragraph (11); and 
(2) by inserting before the period at the end the following: 
", and (13) borrower training under section 359". 
SEC. 1819. LOAN ASSESSMENTS. 
Subtitle D (7 U.S.C. 1981 et seq.) is amended by adding after the 
section added by section 1818(a) of this Act the following new 
section: 
7 u s e 2006b. 
"SEC. 360. LOAN ASSESSMENTS. 
"(a) IN GENERAL.—After an applicant is determined eligible for 
assistance under this title by the appropriate county committee 
established pursuant to section 332, the Secretary shall evaluate, in 
accordance with regulations issued by the Secretary, the farming 
plan and financial situation of each qualified farmer or rancher 
applicant. 
"(b) DETERMINATIONS.—In evaluating the farming plan and finan-
cial situation of an applicant under this section, the Secretary shall 
determine— 
"(1) the amount that the applicant will need to borrow to 
carry out the proposed farming plan; 
"(2) the rate of interest that the applicant would need to be 
able to cover expenses and build an adequate equity base; 
"(3) the goals of the proposed farming plan of the applicant; 
"(4) the financial viability of the plan and any changes that 
are necessary to make the plan viable; and 
"(5) whether assistance is necessary under this title and, if so, 
the amount of the assistance. 
"(c) CONTRACT.—The Secretary may contract with a third party 
(including those entities eligible to provide borrower training under 
section 359(b)) to conduct loan assessments under this section. 
"(d) REVIEW OF LOANS.— 
"(1) IN GENERAL.—Loan assessments conducted under this 
section shall include biannual review of direct loans, and peri-
odic review (as determined necessary by the Secretary) of 
guaranteed loans, made under this title to assess the progress of 
a borrower in meeting the goals for the farm or ranch oper-
ation. 
"(2) CONTRACTS.—The Secretary may contract with an entity 
that is eligible to provide borrower training under section 359(b) 
to conduct loan reviews under pargigraph (1). 
"(3) PROBLEM ASSESSMENTS.—If a borrower is delinquent in 
payments on a direct or guaranteed loan made under this title, 
the Secretary or the contracting entity shall determine the 
cause of, and action necessary to correct, the delinquency. 
Regulations. 
"(e) GUIDELINES.—The Secretary shall issue regulations providing 
guidelines for loan eissessments conducted under this section.". 
SEC. 1820. SUPERVISED CREDIT. 
Subtitle D (7 U.S.C. 1981 et seq.) is amended by adding after the 
sections added by sections 1818(a) and 1819 of this Act the following 
new section: 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3831 
"SEC. 361. SUPERVISED CREDIT. 
7 USC 2006c. 
"The Secretary shall provide adequate training to employees of 
the Farmers Home Administration on credit analysis and financial 
and farm management to— 
"(1) better acquaint the employees with what constitutes 
adequate financial data on which to base a direct or guaranteed 
loan approval decision; and 
"(2) ensure proper supervision of farmer program loans.". 
SEC. 1821. MARKET PLACEMENT. 
Subtitle D (7 U.S.C. 1981 et seq.) is amended by adding after the 
sections added by sections 1818(a), 1819, and 1820 of this Act the 
following new section: 
"SEC. 362. MARKET PLACEMENT. 
7 USC 2006d. 
"The Secretary shall establish a market placement program for 
qualified beginning farmers and ranchers and other borrowers of 
farmer program loans that the Secretary believes have a reasonable 
chance of qualifying for commercial credit with a guarantee pro-
vided under this title.". 
SEC. 1822. SENSE OF CONGRESS REGARDING ASSISTANCE FOR QUALI-
FIED BEGINNING FARMERS OR RANCHERS. 
It is the sense of Congress that, in carr3dng out the Consolidated 
Farm and Rural Development Act (7 U.S.C. 1921 et seq.), the Sec-
retary of Agriculture should— 
(1) establish innovative programs of finance and assistance for 
land transfer between generations and for establishment of new 
farm and ranch units; 
(2) expand the use of the credit sale and land contract method 
for the sale of suitable property acquired under such Act; and 
(3) maintain statistics on the number of loans made, insured, 
or guaranteed, and inventory farmland sold or leased, to quali-
fied beginning farmers or ranchers under such Act. 
SEC. 1823. SENSE OF CONGRESS REGARDING FmHA LOAN APPLICATION 
REVIEW AND LOAN SERVICING. 
(a) FINDINGS.—Congress finds that reports issued by the Inspector 
(Jeneral of the Department of Agriculture and the Comptroller 
Greneral of the United States found problems with the system of loan 
application review, and monitoring of loan servicing of guaranteed 
loans, used under the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1921 et seq.). 
(b) SENSE OF CONGRESS.—It is the sense of Congress that the 
Secretary of Agriculture should quickly take all actions necessary to 
correct the problems identified by the reports and report to Congress 
on the actions taken. 
SEC. 1824. PROHIBITION ON USE OF LOANS FOR CERTAIN PURPOSES. 
Subtitle D of the Consolidated Farm and Rural Development Act 
is amended by adding after the sections added by sections 1818(a), 
1819,1820, and 1821 of this Act the following new section: 
"SEC. 363. PROHIBITION ON USE OF LOANS FOR CERTAIN PURPOSES. 7 USC 2006e. 
"The Secretary shall not approve any loan under this title to 
drain, dredge, fill, level, or otherwise manipulate a wetland (as 
defined in section 1201(aX16) of the Food Security Act of 1985 (16 
U.S.C. 3801(aX16)), or to engage in any activity that results in 
104 STAT. 3832 
PUBLIC LAW 101-624—NOV. 28, 1990 
impairing or reducing the flow, circulation, or reach of water, except 
in the case of activity related to the maintenance of previously 
converted wetlands, or in the case of such activity that is already 
commenced prior to the date of enactment of this section.". 
Banks, banking 
Subtltlc B—Farni Crcdlt Systciii 
SEC. 1831. REFERENCES TO THE FARM CREDIT ACT OF 1971. 
Wherever in this subtitle an amendment or repeal is expressed in 
terms of an amendment to, or repeal of, a section or other provision, 
the reference shall be considered to be made to a section or other 
provision of the Farm Credit Act of 1971 (12 U.S.C. 2001 et seq.), 
except to the extent otherwise specifically provided. 
SEC. 1832. FINANCING FOR BASIC PROCESSING AND MARKETING OPER-
ATIONS OWNED BY BONA FIDE PRODUCERS. 
(a) FARM CREDIT BANKS.—Section 1.11(a) (12 U.S.C. 2019(a)) is 
amended— 
(1) by striking "(a) Agricultural or Aquatic Purposes.—Loans 
made by a Farm Credit Bank" and inserting the following: 
"(a) Agricultural or Aquatic Purposes.— 
"(1) In general.—Loans made by a Farm Credit Bank"; 
(2) by striking "at least 20 percent," and all that follows 
through "Farm Credit Administration," and inserting "some 
portion"; and 
(3) by adding after and below the end the following new 
paragraph: 
"(2) Limitation on loans for basic processing and marketing 
operations.—The aggregate of the financing provided by any 
Farm Credit Bank for basic processing and marketing directly 
related to the operations of farmers, ranchers, and producers or 
harvesters of aquatic products, if the operations of the applicant 
supply less than 20 percent of the total processing or marketing 
for which financing is extended, shall not exceed 15 percent of 
the total of all outstanding loans of such bank.". 
O
t
)
) PRODUCTION CREDIT ASSOCIATIONS.—Section 2.4(aXl) (12 U.S.C. 
2075(aXl)) is amended by striking "at least 20 percent," and all that 
follows through the end of the parEigraph and inserting "some 
portion of the total processing or marketing for which financing is 
extended, except that the aggregate of the financing provided by any 
association for basic processing and marketing directly related to 
the operations of farmers, ranchers, and producers or harvesters of 
aquatic products, if the operations of the applicant supply less than 
20 percent of the total processing or marketing for which financing 
is extended, shall not exceed 15 percent of the total of all outstand-
ing loans of all associations in the district at the end of its preceding 
fiscal year;". 
SEC. 1833. RESTORATION OF FIRST LIEN ON STOCK. 
Subtitle A of title II is amended— 
(1) by redesignating section 2.6 (12 U.S.C. 2077) as section 2.7; 
and 
(2) by inserting after section 2.5 (12 U.S.C. 2076) the following 
new section: 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3833 
"SEC. 2.6. LIENS ON STOCK. 
7 USC 2076a. 
"Except with regard to stock or participation certificates held by 
other Farm Credit System institutions, each production credit 
association shall have a first lien on stock and participation certifi-
cates the association issues, on allocated surplus, and on invest-
ments in equity reserve, for any indebtedness of the holder of the 
capital investments and, in the case of equity reserves, for charges 
for association losses in excess of reserves £ind surpluses.". 
SEC. 1834. INSURANCE SERVICES. 
Section 4.29 (12 U.S.C. 2218) is amended— 
(1) in subsection (aX2)— 
(A) in the first sentence, by inserting before the period at 
the end the following: ", if more than two insurers for each 
type of insurance have proposed programs to a bank that 
will, in all likelihood, have long-term viability and meet the 
requirements of subsection (bX2XD)"; and 
(B) in the third sentence, by inserting before the period at 
the end the following: ", if at least two insurers have been 
s 
approved in accordance with this paragraph"; and 
(2) in subsection (bX2XE), by inserting before the semicolon at 
the end the following: ", if at least two insurers have been 
approved in accordance with subsection (aX2)". 
SEC. 1835. CLARIFICATION OF CONTENTS OF CERTIFIED STATEMENTS. 
Subsection (a) of section 5.56 (12 U.S.C. 2277a-5(a)) is amended to 
read as follows: 
"(a) FiuNG CERTIFIED STATEMENT.—Annually, on a date to be 
determined in the sole discretion of the Board of Directors, each 
insured System bank that became insured before the beginning of 
the year shall file with the Corporation a certified statement 
showing— 
(1) the annual average principal outstanding on loans made 
by the bank that are in accrual status, including the 
nonguaranteed portions of government-guaranteed loans; 
"(2) the annual average principal outstanding on the guaran-
teed portion of Federed Government-guaranteed loans (as de-
fined in section 5.55(aX2)) that are in accrual status; 
"(3) the annual average principal outstanding on State 
government-guaranteed loans (as defined in section 5.55(aX2)) 
that are in accrual status; 
"(4) the annual average principal outstanding on loans that 
are in nonaccrual status; and 
"(5) the amount of the premium due the Corporation from the 
bank for the year.". 
SEC. 1836. TERMINATION DATE FOR FARM CREDIT SYSTEM ASSISTANCE 
BOARD. 
(a) USE OF INSURANCE FUND.—Section 5.60(c) (12 U.S.C. 2277a-9(c)) 
is amended— 
(1) in paragraph (1), by striking "5 years after the date of the 
enactment of this part' and inserting "January 1, 1993"; and 
(2) in paragraph (2), by striking "5 years after the date of 
enactment of this part" and inserting "January 1,1993". 
(b) POWERS OF CORPORATION WITH RESPECT TO TROUBLED INSURED 
SYSTEM BANKS.—Section 5.61(f) (12 U.S.C. 2277a-10(f)) is amended by 
104 STAT. 3834 
PUBLIC LAW 101-624—NOV. 28, 1990 
striking "beginning on the date of the enactment of this part" and 
inserting "prior to January 1,1998". 
SEC. 1837. EMPLOYMENT OF CERTAIN PERSONS BY FARM CREDIT 
SYSTEM INSTITUTIONS. 
Section 5.65(d) (12 U.S.C. 2277a-14(d)) is amended— 
(1) in paragraph (1), by striking "insured System bank" and 
inserting "insured System institution"; and 
(2) in paragraph (2), by striking "bank" and inserting "institu-
tion". 
SEC. 1838. TERMINATION OF SYSTEM INSTITUTION STATUS OF CALIFOR-
NIA LIVESTOCK PRODUCTION CREDIT ASSOCIATION. 
(a) AUTHORITY TO TERMINATE.—Notwithstanding any other provi-
sion of law, effective on the date of enactment of this Act, the 
California Livestock Production Credit Association may terminate 
the status of the Association as a Farm Credit System institution. 
(b) REQUIREMENTS.—Notwithstanding section 7.10(aX4) of the 
Farm Credit Act of 1971 (12 U.S.C. 2279(aX4)), the California Live-
stock Production Credit Association shall not (on termination) be— 
(1) required to pay any part of the last $1,000,000 of its capital; 
or 
(2) restricted from transferring any part of the $1,000,000 to 
its successor institution. 
SEC. 1839. SECONDARY MARKET FOR GUARANTEED FARMER PROGRAM 
LOANS. 
(a) DEFINITION OF CERTIFIED FACIUTY,—Parsigraph (3) of section 
8.0 (12 U.S.C. 2279aa(3)) is amended to read as follows: 
"(3) CERTIFIED FACIUTY,—The term 'certified facility' means— 
"(A) a secondary marketing agricultural loan facility that 
is certified under section 8.5; or 
"(B) the Corporation and any affiliate thereof, but only 
with respect to qualified loans described in paragraph 
(9XB).". 
(b) DEFINITION OF QUAUFIED LOAN.—Paragraph (9) of section 8.0 
(12 U.S.C. 2279aa(9)) is amended to read as follows: 
"(9) QUAUFIED LOAN.—The term 'qualified loan' means an 
obligation— 
"(AXi) that is secured by a fee-simple or leasehold mort-
gage with status as a first lien, on agricultural real estate 
located in the United States that is not subject to any legal 
or equitable claims deriving from a preceding fee-simple or 
leasehold mortgage; 
"(ii) of— 
"(I) a citizen or national of the United States or an 
alien lawfully admitted for permanent residence in the 
United States; or 
"(II) a private corporation or partnership whose 
members, stockholders, or partners holding a majority 
interest in the corporation or partnership are individ-
uals described in subclause (I); and 
"(iii) of a person, corporation, or partnership that has 
training or farming experience that, under criteria estab-
lished by the (Corporation, is sufficient to ensure a reason-
able likelihood that the loan will be repaid according to its 
terms; or 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3835 
"(B) that is the portion of a loan guaranteed by the 
Secretary of Agriculture pursuant to the Consolidated Farm 
and Rural Development Act (7 U.S.C. 1921 et seq.), except 
that— 
"(i) subsections (b) through (f) of section 8.6, and 
sections 8.7, 8.8, and 8.9, shall not apply to the portion 
of a loan guaranteed by the Secretary or to an obliga-
tion, pool, or security representing an interest in or 
obligation backed by a pool of obligations relating to 
the portion of a loan guaranteed by the Secretary; and 
"(ii) the portion of a loan guaranteed by the Sec-
retary shall be considered to meet all standards for 
qualified loans for all purposes under this Act.". 
SEC. 1840. AUTHORITY OF FARM CREDIT ADMINISTRATION TO REGULATE 
FEDERAL AGRICULTURAL MORTGAGE CORPORATION. 
Section 8.11 (12 U.S.C. 2279aa-ll) is amended— 
(1) in subsection (a), by amending paragraph (1) to read as 
follows: 
"(1) AUTHORITY.—Notwithstanding any other provision of this 
Act, the Farm Credit Administration shall have the authority 
to— 
"(A) provide for the examination of the condition of the 
Corporation and its affiliates; and 
"(B) provide for the general supervision of the safe and 
sound performance of the powers, functions, and duties 
vested in the Corporation and its affiliates by this title, 
including through the use of the enforcement powers of the 
Farm Credit Administration under part C of title V."; and 
(2) by adding at the end the following new subsection: 
"(e) DEFINITION OF AFFILIATE.—As used in this title, the term 
'affiliate' shall mean an entity effectively controlled or owned by the 
Corporation, except that such term shall not include a certified 
facility or an originator (as defined in paragraphs (3) and (7), respec-
tively, of section 8.0).". 
SEC. 1841. EXCLUSION OF FARM CREDIT ADMINISTRATION FROM SENIOR 
12 USC 2001 
EXECUTIVE SERVICE. 
note 
Section 3132(a)(1)(D) of title 5, United States Code, is amended by 
inserting "the Farm Credit Administration," after "Corporation,*. 
SEC. 1842. GAO STUDY OF RURAL CREDIT COST AND AVAILABILITY. 
(a) STUDY.—The Comptroller General of the United States shall 
conduct a study of certain matters related to the cost and availabil-
ity of credit in rural America, including a study of— 
(1) the relationship of the role and lending volume of the 
Farm Credit System to the ability of the System to repay the 
assistance provided under the Agricultural Credit Act of 1987 
(Public Law 100-233) and amendments made by such Act; 
(2) the ability of Farm Credit System institutions to be 
competitive taking into consideration the costs of rebuilding 
capital, repa3dng assistance, and capitalizing the Farm Credit 
Insurance Fund established under section 5.60 of the Farm 
Credit Act of 1971 (12 U.S.C. 2277a-9); 
(3) the rates Farm Credit Banks charge for credit and the 
rates prevailing in the market for credit of comparable risk and 
maturity; 
39-194 O - 91 - 17 : QL 3 Part 5 
104 STAT. 3836 
PUBLIC LAW 101-624—NOV. 28, 1990 
(4) the potential for credit pricing practices of rural lending 
institutions to adversely affect the financial soundness of other 
lending institutions that provide agricultural credit; 
(5) the pricing practices of commercial lending and insursince 
institutions and whether the practices adequately address the 
level of risk in agricultural lending; 
(6) whether the assistance authorized under the Agricultural 
Credit Act of 1987 and the amendments made by such Act, is 
being utilized in accordance with the purposes intended by 
Congress; 
(7) the availability and adequacy of credit in rursd America 
for the purpose of financing agricultural production, infrastruc-
ture development (including development of roads, bridges, £ind 
water systems), and rural development; 
(8) the prudence and desirability for commercial lenders and 
Farm Credit System institutions who serve primarily agri-
culture to broaden lending activity to provide diversity in their 
portfolios; 
(9) the level of competitiveness among the major sector lend-
ers in agriculture, whether competition among such lenders has 
increased or decreased in the last 5 years, and whether Amer-
ic£m producers have benefited from the competitive situation; 
and 
(10) the level of farm lending activity, in relation to the total 
asset level, of agricultural lending institutions in rural America 
and the level of investment by the institutions outside of the 
rural community or area in which the lending institutions are 
located. 
(b) REPORT.—Not later than 2 years after the date of enactment of 
this Act, the Comptroller General shall submit a report on the study 
conducted under subsection (a) (including any related recommenda-
tions) to the Committee on Agriculture of the House of Representa-
tives and the Committee on i^iculture, Nutrition, and Forestry of 
the Senate. 
SEC. 1843. SALARIES AND COMPENSATION PAID BY SYSTEM INSTITU-
TIONS. 
(a) REPEAL OF AUTHORITY OF FARM CREDIT ADMINISTRATION TO 
APPROVE SALARIES AND COMPENSATION PAID BY SYSTEM INSTITU-
TIONS.— 
(1) IN GENERAL.—Section 5.17(a) (12 U.S.C. 2252(a)) is amended 
by striking paragraph (13). 
(2) C!oNFORMiNG AMENDMENT.—Soction 6.6(aX8)(B) (12 U.S.C. 
2278a-6(aX8XB)) is amended by striking "notwithstanding the 
authority of the Farm Credit Administration to approve such 
matters". 
(b) INCLUSION OF COMPENSATION ANALYSIS IN BANK EXAMINA-
TION.—Section 5.19(a) (12 U.S.C. 2254(a)) is amended by inserting 
after the third sentence the following: "Examination of banks shall 
include an analysis of the compensation paid to the chief executive 
officer and the salary scales of the employees of the bank.". 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3837 
Subtitle C—Miscellaneous 
SEC. 
1
8
5
1
. 
ECONOMIC 
EMERGENCY 
LOAN 
PROGRAM. 
The Emergency Agricultural Credit Adjustment Act of 1978 (7 Repeal. 
U.S.C. prec. 1961 note) is hereby repealed. 
SEC. 1852. AUTHORIZATION OF APPROPRIATIONS FOR FARM OWNERSHIP 
OUTREACH 
PROGRAM 
TO 
SOCIALLY 
DISADVANTAGED 
INDIVIDUALS. 
Section 623 of the Agricultural Credit Act of 1987 (7 U.S.C. 1985 
note) is amended— 
(1) by inserting "(a) IN GENERAL.—" before "The Secretary"; 
and 
(2) by adding at the end the following new subsection: 
"(b) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 
be appropriated to carry out this section $2,500,000 for each of the 
fiscal years 1991 through 1995.". 
SEC. 1853. STATE MEDIATION PROGRAMS. 
Section 506 of the Agricultural Credit Act of 1987 (7 U.S.C. 5106) is 
amended by striking "1991" and inserting "1995". 
SEC. 1854. INDIAN LAND ACQUISITION PROGRAM. 
(a) LIMITED RESOURCE INTEREST RATE.—Section 5 of Public Law 
91-229 (25 U.S.C. 492) is amended by striking "section 307(a)" and 
inserting "section 307(aX3XB)". 
(b) AUTHORIZATION OF APPROPRIATIONS.—Public Law 91-229 (25 
U.S.C. 488 et seq.) is amended by adding at the end the following 
new section: 
"SEC. 6. AUTHORIZATION OF APPROPRIATIONS. 
25 USC 494. 
"There are authorized to be appropriated to carry out this Act 
$8,000,000 for each of the fiscal years 1991 through 1995.". 
Subtitle D—Effective Dates 
SEC. 1861. EFFECTIVE DATES. 
7 USC 2001 note. 
(a) IN GENERAL.—Except as otherwise provided in this title, this 
title and the amendments made by this title shall become effective 
on the date of enactment of this Act. 
(b) NOTICE OF DEBT SETTLEMENT PROGRAMS.—The amendment 
made by section 1807(1) of this Act shall become effective 120 days 
sifter the date of enactment of this Act. 
(c) DEBT RESTRUCTURING AND LOAN SERVICING.— 
(1) IN GENERAL.—Except as provided in section 353(cX6XAXii) 
of the Consolidated Farm and Rural Development Act (as added 
by section 1816(f) of this Act) and in paragraph (3) of this 
subsection, section 1816 of this Act and the amendments made 
by such section 1816 shall apply to new applications submitted 
under section 353 of the Consolidated Farm and Rural Develop-
ment Act (7 U.S.C. 2001) on or after the date of enactment of 
this Act. 
(2) DEFINITION OF NEW APPLICATION.—As used in paragraph 
(1), the term "new application" means an application submitted 
by a borrower to initiate a debt restructuring consideration and 
104 STAT. 3838 
PUBLIC LAW 101-624—NOV. 28, 1990 
not an application reconsidered sifter an appeal or revision of 
the original application. 
(3) LIQUIDATION OF ASSETS.—Section 353(o) of the Consolidated 
Farm and Rural Development Act (as added by section 1816(h) 
of this Act) shall not apply until the Secretary of Agriculture 
has issued final regulations to carry out such section 353(o). 
(d) RESTORATION OF FIRST LIEN ON STOCK.—The amendment made 
by section 1833 of this Act shall be effective as of January 7, 1988. 
(e) REGULATIONS.—As soon as practicable after the date of enact-
ment of this Act— 
(1) the Secretary of Agriculture shall issue such regulations as 
are necessary to carry out subtitles A and C of this Act and the 
amendments made by such subtitles; and 
(2) the Farm Credit Administration shall issue such regula-
tions as are necessary to carry out subtitle B of this Act and the 
amendments made by such subtitle. 
pSdoT' 
TITLE XIX—AGRICULTURAL PROMOTION 
Programs 
Pnxhfcers^ 
SEC. 1901. SHORT TITLE. 
Imports. 
This Act may be cited as the "Agricultural Promotion Programs 
7 u s e 6001 note. 
Act of 1990". 
Promotion and 
SubtltlC A—PCCEnS 
Research 
Act of 1990. 
SEC. 1905. SHORT TITLE. 
7 u s e 6001 note. 
This subtitle may be cited as the "Pecan Promotion and Research 
Act of 1990". 
7 u s e 6001. 
SEC. 1906. FINDINGS AND DECLARATION OF POLICY. 
(a) FINDINGS.—Ck)ngress finds that— 
(1) pecans are a native American nut that is an important 
food, and is a valuable part of the human diet; 
(2) the production of pecans plays a significant role in the 
economy of the United States in that pecans are produced by 
thousands of pecan producers, shelled and processed by numer-
ous shellers and processors, and pecans produced in the United 
States are consumed by millions of people throughout the 
United States and foreign countries; 
(3) pecans must be high quality, readily available, handled 
properly, and marketed efficiently to ensure that consumers 
have an adequate supply of pecans; 
(4) the maintenance and expansion of existing markets and 
development of new markets for pecans are vital to the welfare 
of pecan producers and those concerned with marketing, using, 
and producing pecans, as well as to the general economy of the 
United States, and necessary to ensure the ready availability 
and efficient marketing of pecans; 
(5) there exist established State organizations conducting 
pecan promotion, research, and industry and consumer edu-
cation programs that are invaluable to the efforts of promoting 
the consumption of pecans; 
(6) the cooperative development, financing, and implementa-
tion of a coordinated national progrgun of pecan promotion, 
research, industry information, and consumer information are 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3839 
necessary to maintain and expand existing markets and develop 
new markets for pecans; and 
(7) pecans move in interstate and foreign commerce, and 
pecans that do not move in such channels of commerce directly 
burden or affect interstate commerce in pecans. 
(b) POLICY.—It is declared to be the policy of Congress that it is in 
the public interest to authorize the establishment, through the 
exercise of the powers provided in this subtitle, of an orderly 
procedure for developing, financing (through adequate assessments 
^ 
on pecans produced or imported into the United States), and carry-
ing out an effective, continuous, coordinated program of promotion, 
research, industry information, and consumer information designed 
to— 
(1) strengthen the pecan industry's position in the market-
place; 
(2) maintain and expand existing domestic and foreign mar-
kets and uses for pecans; and 
(3) develop new markets and uses for pecans. 
(c) CONSTRUCTION.—Nothing in this subtitle may be construed to 
provide for the control of production or otherwise limit the right of 
any person to produce pecans. 
SEC. 1907. DEFINITIONS. 
7 USC 6002. 
As used in this subtitle— 
(1) BOARD.—The term "Board" means the Pecan Marketing 
Board established in section 1910(b). 
(2) COMMERCE.—The term "commerce" means interstate, for-
eign, or intrastate commerce. 
(3) CoNFUCT OF INTEREST.—The term "conflict of interest" 
means a situation in which a member has a direct or indirect 
financial interest in a corporation, partnership, sole proprietor-
ship, joint venture, or other business entity dealing directly or 
indirectly with the Board. 
(4) CONSUMER INFORMATION.—The term "consumer informa-
tion" means information and programs that will assist consum-
ers and other persons in making evaluations and decisions 
regarding the purchase, preparation, and use of pecans. 
(5) DEPARTMENT.—The term "Department" means the Depart-
ment of Agriculture. 
(6) DISTRICT.—The term "district" means a geographical area 
of the United States, as determined by the Board and approved 
by the Secretary, in which there is produced approximately one-
fourth of the volume of pecans produced in the United States. 
(7) FIRST HANDLER.—The term "first handler" means the first 
person who buys or takes possession of pecans from a grower for 
marketing. If a grower markets pecans directly to consumers, 
such grower shall be considered the first handler with respect to 
pecans grown by such grower. 
(8) GROWER.—The term "grower" means any person engaged 
in the production and sale of pecans in the United States who 
owns, or who shares the ownership and risk of loss of, such 
pecans. 
(9) GROWER-SHELLER.—The term "grower-sheller" means a 
person who— 
(A) shells pecans, or has pecans shelled for such person, 
in the United States; and 
104 STAT. 3840 
PUBLIC LAW 101-624—NOV. 28, 1990 
(B) during the immediately previous year, grew 50 per-
cent or more of the pecans such person shelled or had 
shelled for such person. 
(10) HANDLE.—The term "handle" means receipt of in-shell 
pecans by a sheller or first handler, including pecans produced 
by such sheller or first handler. 
(11) IMPORTER.—The term "importer" means any person who 
imports pecans from outside of the United States for sale in the 
United States. 
(12) INDUSTRY INFORMATION.—The term "industry informa-
tion" means information and programs that will lead to the 
development of new markets and marketing strategies, in-
creased efficiency, and activities to enhance the image of the 
pecan industry. 
(13) IN-SHELL PECAN.—The term "in-shell pecan" means a 
pecan that has a shell that has not been removed. 
(14) To MARKET.—The term "to market" means to sell or offer 
to dispose of pecans in any channel of commerce. 
(15) MEMBER.—The term "member" means a member of the 
Board. 
(16) PECAN.—The term "pecan" means the nut of the pecan 
tree carya illinoensis. 
(17) PERSON.—The term "person" means any individual, 
group of individuals, partnership, corporation, association, 
cooperative, or any other entity. 
(18) PLAN.—The term "plan" means a plan issued under 
section 1908. 
(19) PROMOTION.—The term "promotion" means any action 
taken by the Board, pursuant to this subtitle, to present a 
favorable image of pecans to the public with the express intent 
of improving the competitive position of pecans in the market-
place and stimulating sales of pecans, including paid advertis-
ing. 
(20) RESEARCH.—The term "research" means any type of test, 
study, or analysis designed to advance the image, desirability, 
usage, marketability, production, product development, or qual-
ity of pecans. 
(21) SECRETARY.—The term "Secretary" means the Secretary 
of Agriculture. 
(22) SHELL.—The term "shell" means to remove the shell from 
an inshell pecan. 
(23) SHELLED PECAN.—The term "shelled pecan" means a 
pecan kernel, or portion of a kernel, after the pecan shell has 
been removed. 
(24) SHELLER.—The term "sheller" means any person who— 
(A) shells pecans or has pecans shelled for the account of 
such person; and 
(B) during the immediately previous year, purchased 
more than 50 percent of the pecans such person shelled or 
had shelled for such account. 
(25) STATE.—The term "State" means £iny of the several 
States, the District of Columbia and the Commonwealth of 
Puerto Rico. 
(26) UNITED STATES.—The term "United States" means collec-
tively the several States, the District of Columbia, and the 
Commonwealth of Puerto Rico. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3841 
SEC. 1908. ISSUANCE OF PLANS. 
7 USC 6003. 
(a) IN GENERAL.—To effectuate the declared policy of section 
190603), the Secretary shall, subject to this subtitle, issue and from 
time to time amend, plans applicable to growers, grower-shellers, 
shellers, first handlers, and importers of pecans. Any such plan shall 
be national in scope. Not more than one plan shall be in effect under 
this subtitle at giny one time. 
^ 
G)) PROCEDURE.— 
(1) PROPOSAL FOR ISSUANCE OF PLAN.—The Secretary 
may 
propose the issuance of a plan under this subtitle, or an associa-
tion of pecan growers or grower-shellers or any other person 
that will be affected by this subtitle may request the issuance of, 
and submit a proposal for, such a plan. 
(2) PROPOSED PLAN.—Not later than 60 days after the receipt 
of a request and proposal by an interested person for a plan, or 
when the Secretary determines to propose a plan, the Secretary 
shall publish a proposed plan and give due notice and oppor-
tunity for public comment on the proposed plan. 
(3) ISSUANCE OF PLAN.—After notice and opportunity for 
public comment are given, as provided in paragraph (2), the 
Secretary shall issue a plan, taking into consideration the com-
ments received and including in the plan provisions necessary 
to ensure that the plan is in conformity with the requirements 
of this subtitle. 
(4) EFFECTIVE DATE OF PLAN.—Such plan shall be issued and 
become effective not later than 150 days following publication of 
the proposed plan. 
(c) AMENDMENTS.—The Secretary, from time to time, may amend 
any plan issued under this section. The provisions of this subtitle 
applicable to a plan shall be applicable to amendments to a plan. 
SEC. 1909. REGULATIONS. 
7 USC 6004. 
The Secretary may issue such regulations as are necessary to 
carry out this subtitle. 
SEC. 1910. REQUIRED TERMS IN PLANS. 
7 USC 6005. 
(a) IN GENERAL.—Each plan issued under this subtitle shall con-
tain the terms and conditions prescribed in this section. 
0)) PECAN MARKETING BOARD.— 
(1) ESTABUSHMENT.—The plan shall establish a Pecan 
Marketing Board to carry out the program referred to in section 
190603). 
(2) SERVICE TO ENTIRE INDUSTRY.—The Board shall carry out 
programs and projects that will provide maximum benefit to the 
pecan industry in all parts of the United States and only 
generically promote pecans. 
(3) BOARD MEMBERSHIP.—The Board shall consist of 15 mem-
bers, including— 
(A) 8 members who are growers; 
(B) 4 members who are shellers; 
(C) one member who is a first handler and who derives 
over 50 percent of the member's gross income from buying 
and selling pecans; 
(D) one member who is an importer of pecans into the 
United States, nominated by the Board; 
(E) one member representing the general public, nomi-
nated by the Board; and 
104 STAT. 3842 
PUBLIC LAW 101-624—NOV. 28, 1990 
(F) at the option of the Board, a consultant or advisor 
representing the views of pecan producers in a country 
other than the United States who may be chosen to attend 
Board functions as a nonvoting member. 
(4) REPRBSENTATION OF MEMBERS.— 
(A) GROWER REPRESENTATIVES.—Of the growers referred 
to in paragraph (3XA), 2 members shall l^ from each dis-
trict. 
(B) SHELLER REPRESENTATIVES.—Of the shellers referred 
to in paragraph (3XB)— 
(i) 2 members shall be selected from among shellers 
whose place of residence is east of the Mississippi 
River; and 
(ii) 2 members shall be selected from smiong shellers 
whose place of residence is west of the Mississippi 
River. 
(C) FIRST HANDLER REPRESENTATIVE.—The first handler 
representative on the Board referred to in paragraph (3XC) 
shall be selected from among first handlers whose place of 
residence is in a district. 
(D) IMPORTER REPRESENTATIVE.—The importer representa-
tive on the Board referred to in paragraph (3XD) shall be an 
individual who imports pecans into the United States. 
(E) PuBUC REPRESENTATIVE.—The public representative 
on the Board referred to in paragraph (3XE) shall not be a 
grower, grower-sheller, sheller, first handler, or importer. 
(5) ALTERNATE FOR EACH MEMBER.—Each member of the Board 
shall have an alternate with the same qualifications as the 
member such alternate would replace. 
(6) LIMITATION ON STATE RESIDENCE.—There shall be no more 
than one member from each State in each district, except that 
the State of Greorgia may have 2 growers from such State 
representing the district that it is in. 
(7) MODIFYING BOARD MEMBERSHIP.—In accordance with regu-
lations approved by the Secretary, at least once each 3 years 
and not more than once each 2 years, the Board shall— 
(A) review the geographic distribution of pecan produc-
tion throughout the United States; and 
(B) if warranted, recommend to the Secretary that the 
Secretary reapportion a district in order to reflect the 
geographic distribution of pecan production, 
(8) SELECTION PROCESS FOR MEMBERS.— 
(A) PuBuciTY,—The Board sheill give reasonable publicity 
to the industry for nomination of persons interested in 
being nominateid for Board membership. 
(B) EuGiBiLTTY.—Each grower and sheller shall be eli-
gible to vote for the nomination of members who represent 
that class of members on the Board. Growers shall be 
eligible to vote for the nomination of the first handler 
members on the Board. 
(C) SELECTION OF NOMINEES.—Each person referred to in 
subparagraph (B) shall have one vote. The 2 eligible can-
didates receiving the largest number of votes cast for each 
Board position for each class of members shall be the 
nominees for such position. 
(D) CERTIFICATION.—Except for the establishment of the 
initial Board, the nominations made under subparagraph 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3843 
(C) and subsections (bX3XD) and (bX3XE) shall be certified by 
the Board and submitted to the Secretary no later than 
May 1 or such other date recommended by the Board and 
approved by the Secretary preceding the commencement of 
the term of office for Board membership, as established in 
paragraph (9). 
(E) APPOINTMENT.—To each vacant Board position, the 
Secretary shall appoint 1 individual from among the nomi-
nees certified and submitted under subparagraph (D). 
(F) REJECTION OF NOMINEES.—The Secretary may reject 
any nominee submitted under subparagraph (D). If there 
are insufficient nominees from which to appoint members 
to the Board as a result of the Secretary's rejecting such 
nominees, additional nominees shall be submitted to the 
Secretary in the same manner. 
(G) INITIAL BOARD.—The Secretary shall establish an ini-
tial Board from among nominations solicited by the Sec-
retary. For the purpose of obtaining nominations for the 
members of the initial Board described in paragraph 3 (A), 
(B), and (C), the Secretary shall perform the functions of the 
Board under this subsection as the Secretary determines 
necessary and appropriate. Nominations for those members 
of the initial Board described in paragraph (3) (D) and (E) 
shall be made in accordeince with paragraph (3). 
(H) FAILURE TO NOMINATE.—If growers and shellers fail to 
nominate individuals for appointment, the Secretary may 
appoint members on a basis provided for in the plan. If the 
Board fails to nominate an importer or a public representa-
tive, such member may be appointed without a nomination. 
(9) TERMS OF OFFICE.— 
(A) IN GENERAL.—The members of the Board shall serve 
for a term of 3 years, except that the members appointed to 
the initial Board established under paragraph (8XG) shall 
serve, proportionately, for terms of 1, 2, and 3 years, as 
determined by the Secretary. 
(B) TERMINATION OF TERMS.—Notwithstanding subpara-
graph (C), each member shall continue to serve until a 
successor is appointed by the Secretary. 
(C) LIMITATION ON TERMS.—No individual may serve more 
than 2 consecutive 3-year terms as a member. 
(D) VACANCIES.— 
(i) SUBMITTING NOMINATIONS.—To fill any vacancy 
created by the death, removal, resignation, or disquali-
fication of any member of the Board, the Secretary 
shall request that at least 2 eligible nominations for a 
successor for each such vacancy be submitted by the 
Board in the manner provided in paragraph (8). 
(ii) LACK OF NOMINATIONS.—If at least 2 eligible 
nominations are not submitted under clause (i), the 
Secretary shall determine the manner of submission of 
nominations for the vacancy. 
(10) COMPENSATION.—A member of the Board shall serve 
without compensation, but shall be reimbursed for necessary 
and reasonable expenses incurred in the performance of duties 
for and approved by the Board. 
104 STAT. 3844 
PUBLIC LAW 101-624—NOV. 28, 1990 
(c) POWERS AND DUTIES OF THE BOARD.—The plan shall define the 
powers and duties of the Board, which shall include the power and 
duty— 
(1) to administer the plan in accordance with its terms and 
conditions; 
(2) to make regulations to effectuate the terms and conditions 
of the plan; 
(3) to meet, organize, and select from among members of the 
Board a chairperson, other officers, and committees and sub-
committees, as the Board determines appropriate; 
(4) to establish working committees of persons other than 
Board members; 
(5) to employ such persons, other than Board members, as the 
Board considers necessary and to determine the compensation 
and define the duties of such persons; 
(6) to prepare and submit for the approval of the Secretary, 
prior to the beginning of each fiscal period, a recommended rate 
of assessment under section 1912, and a fiscal period budget of 
the anticipated expenses in the administration of the plan, 
including the probable costs of all programs and projects; 
(7) to develop programs and projects, subject to subsection (d); 
(8) to enter into contracts or agreements, subject to subsection 
(e), to develop and carry out programs or projects of promotion, 
research, industry information and consumer information; 
(9) to carry out research, promotion, industry information, 
and consumer information, and to pay the costs of such projects 
with assessments collected pursuant to section 1912; 
(10) to keep minutes, books, and records that reflect the 
actions and transactions of the Board, and promptly report 
minutes of each Board meeting to the Secretary; 
(11) to appoint and convene, from time to time, working 
committees comprised of growers, grower-shellers, first han-
dlers, shellers, importers, and the public to assist in the develop-
ment of research, promotion, industry information, 
and 
consumer information programs for pecans; 
(12) to invest, pending disbursement under a program or 
project, funds collected through assessments authorized under 
this subtitle, only in— 
(A) obligations of the United States or any agency 
thereof; 
(B) general obligations of any State or any political sub-
division thereof; 
(C) any interest-bearing account or certificate of deposit 
of a bank that is a member of the Federal Reserve System; 
or 
(D) obligations fully guaranteed as to principal and 
interest by the United Stetes; 
except that income from any such invested funds may be used 
for any purpose for which the invested funds may be used; 
(13) to receive, investigate, and report to the Secretory com-
plaints of violations of the plan; 
(14) to furnish the Secretory with such information as the 
Secretory may request; 
(15) to recommend to the Secretory gmiendments to the plan; 
and 
(16) to develop and recommend to the Secretory for approval 
such regulations as may be necessary for the development and 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3845 
execution of programs or projects, or as may otherwise be 
necessary, to carry out the plan. 
(d) PROGRAMS AND BUDGETS.— 
(1) SUBMISSION TO SECRETARY.—The plan shall provide that 
the Board shall submit to the Secretary for approval any pro-
gram or project of promotion, research, consumer information, 
or industry information. No program or project shall be imple-
mented prior to its approval by the Secretary. 
(2) BUDGETS.—The plan shall require the Board, prior to the 
beginning of each fiscal year, or as may be necessary after the 
beginning of such fiscal year, to submit to the Secretary for 
approval budgets of its anticipated expenses (including re-
imbursements under subsection (b)(10)) and disbursements in 
the implementation of the plan, including projected costs of 
promotion, research, consumer information, and industry 
information programs and projects. 
(3) INCURRING EXPENSES.—The Board may incur such ex-
penses for programs or projects of research, promotion, 
consumer information, or industry information, and other ex-
penses for the administration, maintenance, and functioning of 
the Board as may be authorized by the Secretary, including any 
implementation, administrative, and referendum costs incurred 
by the Department. 
(4) PAYING EXPENSES.—The funds to cover the expenses re-
ferred to in paragraph (3) shall be paid by the Board from 
assessments collected under section 1912 or funds borrowed 
pursuant to paragraph (5). 
(5) AUTHORITY TO BORROW.—In order to meet the expenses 
referred to in paragraph (3), the Board shall have the authority 
to borrow funds, as approved by the Secretary, for capital 
outlays and startup costs. 
(6) LIMITATION ON SPENDING.—Effective on the date that is 3 
years after the date of the establishment of the Board, the 
Board shall not spend in excess of 20 percent of the assessments 
collected under section 1912 for administration of the Board. 
(e) CONTRACTS AND AGREEMENTS.— 
(1) IN GENERAL.—To ensure efficient use of funds, the plan 
shall provide that the Board may enter into contracts or agree-
ments for the implementation and carrying out of programs or 
projects of pecan promotion, research, consumer information, or 
industry information, including contracts with grower and 
grower-sheller organizations, and for the pajonent of the cost 
thereof with funds received by the Board under the plan. 
(2) REQUIREMENTS.—Any such contract or agreement shall 
provide that— 
(A) the contracting party shall develop and submit to the 
Board a program or project together with a budget or 
budgets that shall show estimated costs to be incurred for 
such program or project; 
(B) the program or project shall become effective on the 
approval of the Secretary; and 
(C) the contracting party shall keep accurate records of Records, 
all of its transactions, account for funds received and ex- Reports. 
pended, make periodic reports to the Board of activities 
conducted, and make such other reports as the Board or the 
Secretary may require. 
104 STAT. 3846 
PUBLIC LAW 101-624—NOV. 28, 1990 
(3) GROWER AND GROWER-SHELLER ORGANIZATIONS.—The plan 
shall provide that the Board may contract with grower and 
grower-sheller organizations for any other services. Any such 
contract shall include provisions comparable to those required 
by paragraph (2). 
(f) BOOKS AND RECORDS OF BOARD.— 
(1) IN GENERAL.—The plan shall require the Board to— 
(A) maintain such books and records (which shall be 
available to the Secretary for inspection and audit) as the 
Secretary may prescribe; 
Reports. 
(B) prepare and submit to the Secretary, from time to 
time, such reports as the Secretary may prescribe; and 
(C) account for the receipt and disbursement of all funds 
entrusted to the Board. 
(2) AUDITS.—The Board shall cause its books gmd records to be 
audited by an independent auditor at the end of each fiscal 
year, and a report of such audit to be submitted to the Sec-
retary. 
(g) PROHIBITION.—The Board shall not engage in any action to, nor 
shall any funds received by the Board under this subtitle be used 
to— 
(1) influence legislation or governmental action, other than 
recommending to the Secretary amendments to the plan; 
(2) engage in any action that would be a conflict of interest; or 
(3) engage in any advertising that may be false or misleading. 
Gi) BOOKS AND RECORDS.— 
(1) IN GENERAL.—The plan shall require that each first han-
dler, grower-sheller, or importer shall— 
Reports- 
(A) maintain and submit to the Board any reports consid-
ered necessary by the Secretary to ensure compliance with 
this subtitle; and 
(B) make available during normal business hours, for 
inspection by employees of the Board or Secretary, such 
books and records as are necessary to carry out this sub-
title, including such records as are necessary to verify any 
required reports. 
(2) TIME REQUIREMENT.—The records required under para-
graph (1) shall be maintained for 2 years beyond the fiscal 
period of the applicability of such records. 
(3) CONFIDENTIALITY.— 
(A) IN GENERAL.—Except as otherwise provided in this 
subtitle, all information obtained from books, records, or 
reports required to be maintained under paragraph (1) shall 
be kept confidential, and shall not be disclosed to the public 
by any person. 
(B) DISCLOSURE.—Information referred to in subpara-
graph (A) may be disclosed to the public only if— 
(i) the Secretary considers the information relevant; 
(ii) the information is revealed in a suit or adminis-
trative hearing brought at the direction or on the 
request of the Secretary or to which the Secretary or 
any officer of the Department is a party; and 
(iii) the information relates to this subtitle. 
(C) MISCONDUCT.—Any disclosure of confidential informa-
tion in violation of subparagraph (A) by any Board member 
or employee of the Board, except as required by other law 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3847 
or allowed under subparagraph (B) or (D), shall be consid-
ered a violation of this subtitle. 
(D) GENERAL STATEMENTS.—Nothing in this parsigraph 
may be construed to prohibit— 
(i) the issuance of general statements, based on the 
reports, of the number of persons subject to the plan or 
statistical data collected therefrom, which statements 
do not identify the information furnished by any 
person; or 
(ii) the publication, by direction of the Secretary, of 
the name of any person violating the plan, together 
with a statement of the particular provisions of the 
plan violated by such person. 
(4) AVAILABILITY OF INFORMATION.— 
(A) EXCEPTION.—Except as provided in this subtitle, 
information obtained under this subtitle may be made 
available to another agency of the Federal Government for 
a civil or criminal law enforcement activity if the activity is 
authorized by law and if the head of the agency has made a 
written request to the Secretary specif3dng the particular 
information desired and the law enforcement activity for 
which the information is sought. 
(B) PENALTY.—Any person knowingly violating this 
subsection, on conviction, shall be subject to a fine of not 
more than $1,000 or to imprisonment for not more than 1 
year, or both, and if an officer or employee of the Board or 
the Department, shall be removed from office. 
(5) WITHHOLDING INFORMATION.—Nothing in this subtitle 
shall be construed to authorize the withholding of information 
from Congress. 
(i) USE OF ASSESSMENTS.—The plan shall provide that the assess-
ments collected under section 1912 shall be used for payment of the 
expenses in implementing and administering this subtitle, with 
provision for a reasonable reserve, and to cover those administrative 
costs incurred by the Secretary in implementing and administering 
this subtitle, except for the salaries of Government employees in-
curred in conducting referenda. 
(j) OTHER TERMS AND CONDITIONS.—The plan also shall contain 
such terms and conditions, not inconsistent with this subtitle, as 
determined necessary by the Secretary to effectuate this subtitle. 
SEC. 1911. PERMISSIVE TERMS IN PLANS. 
7 USC 6006. 
(a) IN GENERAL.—A plan issued pursuant to this subtitle may 
contain one or more of the terms and conditions contained in this 
section. 
Ot)) EXEMPTIONS.—The plan may provide authority to exempt from 
the plan pecans used for nonfood uses and authority for the Board to 
require satisfactory safeguards against improper uses of such 
exemptions. 
(c) DIFFERENT PAYMENT AND REPORTING SCHEDULES.—The plan 
may provide authority to designate different pajonent and reporting 
schedules for growers, grower-shellers, first handlers and importers 
to recognize differences in marketing practices and procedures uti-
lized in different production areas. 
(d) PROMOTION.—The plan may provide for the establishment, 
issuance, effectuation, and administration of appropriate programs 
104 STAT. 3848 
PUBLIC LAW 101-624—NOV. 28, 1990 
or projects for the promotion of pecans and for the disbursement of 
necessary funds for such purposes, except that— 
(1) any such program or project shall be directed toward 
increasing the general demand for pecans; and 
(2) such promotional activities shall comply with other restric-
tions on the use of funds that are established under this sub-
title. 
(e) RESEARCH AND INFORMATION.—The plan may provide for 
establishing and carrying on research, consumer information, and 
industry information projects and studies to the end that the 
marketing and utilization of pecans may be encouraged, expanded, 
improved, or made more efficient, and for the disbursement of 
necessary funds for such purposes. 
(f) RESERVE FUNDS.—The plan may provide authority to accumu-
late reserve funds from assessments collected pursuant to this sub-
title, to permit an effective and continuous coordinated program of 
research, consumer information, industry information and pro-
motion in years when the production and assessment income may be 
reduced, except that the total reserve fund may not exceed the 
amount budgeted for the operation of the plan for 2 years. 
(g) FOREIGN MARKETS.—The plan may provide authority to use 
funds collected under this subtitle, with the approval of the Sec-
retary, for the development and expansion of pecan sales in foreign 
markets. 
7 use 6007. 
SEC. 1912. ASSESSMENTS. 
(a) IN GENERAL.—During the effective period of a plan issued 
pursuant to this subtitle, assessments shall be— 
(1) levied on sill pecans produced in, and sill pecans imported 
into, the United States and marketed; and 
(2) deducted from the payment made to a grower for all 
pecans sold to a first handler. 
(b) LIMITATION ON ASSESSMENTS.—No more than one assessment 
may be assessed under subsection (a) on a grower (as remitted by a 
first handler), grower-sheller, or importer, for any lot of pecans 
handled or imported. 
(c) REMITTING ASSESSMENTS.— 
(1) IN GENERAL.—Assessments required under subsection (a) 
shall be remitted to the Board by— 
(A) a first handler; and 
(B) an importer. 
(2) TIMES TO REMIT ASSESSMENT.— 
(A) FIRST HANDLERS.—Each first handler who is not 
a 
grower-sheller and who is required to remit an assessment 
under paragraph (1) shall remit such assessment to the 
Board no later than the last day of the month following the 
month that the pecans being assessed were purchased or 
marketed by such first handler. 
(B) GROWER-SHELLERS.—Each first handler who is a 
grower-sheller and who is required to remit an assessment 
under paragraph (1) shall remit such assessment to the 
Board, to the extent practicable, in pajonents of one-third of 
the total annual amount of such assessment due to the 
Board on January 31, March 31, and May 10, or such dates 
as may be recommended by the Board and approved by the 
Secretary, during the fiscal year that the pecans being 
assessed were harvested. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3849 
(C) IMPORTERS.—Importers of pecans into the United 
States shall pay the assessment at the time the pecans 
enter the United States and shall remit such assessment to 
the Board. 
(d) ASSESSMENT RATE.— 
(1) IN GENERAL.—Except £is provided in paragraph (2), assess-
ment rates shall be recommended by the Board and approved by 
the Secretary, except that the maximum assessment shall not 
exceed— 
(A) during the period commencing on the effective date of 
the issuance of a plan and ending on the date the referen-
dum is conducted under section 1916(a), one-half cent per 
pound for in-shell pecans as determined by the Board and 
approved by the Secretary; and 
(B) after such period, 2 cents per pound for in-shell 
pecans. 
(2) ADJUSTING RATE FOR SHELLED PECANS.—The rate of assess-
ment of shelled pecans shall be twice the rate established 
for in-shell pecans pursuant to paragraph (1). 
(3) SPECIAL STATE ASSESSMENT.— 
(A) IN GENERAL.—Notwithstanding any other provision of 
this subtitle, with the approval of the Secretary and if 
authorized by State law and requested by such State, a 
special assessment of one-quarter cent per pound for in-
shell pecans, and an appropriate per-pound assessment for 
shelled pecans as adjusted under paragraph (2), shall be 
remitted to the Board for the purpose of utilizing such 
funds by a State pecan marketing board for research 
projects to promote pecans pursuant to State law. 
(B) COLLECTION AND REMITTANCE.—The Board shall col-
lect such assessments and upon receipt of such assessments 
shall remit such assessments to the State, within a time 
period mutually agreed upon between the State and the 
Board, and approved by the Secretary. In the collection of 
such State assessments, neither the Board nor the Sec-
retary shall in any manner enforce the collection or remit-
tance of any such payment by producers of such State 
assessments or investigate nonpayment of such State 
assessments, except to provide to a State the names of 
growers from whom such assessments were collected and 
the respective amounts of assessments collected. 
(C) REGULATIONS.—The Secretary is authorized to make 
such regulations as may be necessary to carry out the 
provisions of this section. 
(e) LATE-PAYMENT CHARGE.— 
(1) IN GENERAL.—There shall be a late-payment charge im-
posed on any person who fails to remit, on or before the due 
date established by the Board under subsection (cX2), to the 
Board the total amount for which such person is liable. 
(2) AMOUNT OF CHARGE.—The amount of the late-payment 
charge imposed under paragraph (1) shall be prescribed by the 
Board with the approval of the Secretary. 
(f) REFUND OF ASSESSMENTS FROM ESCROW ACCOUNT.— 
(1) ESTABLISHMENT OF ESCROW ACCOUNT.—During the period 
beginning on the effective date of a plan first issued under 
section 1908 and ending on the date the referendum is con-
ducted under section 1916(a), the Board shall— 
104 STAT. 3850 
PUBLIC LAW 101-624—NOV. 28, 1990 
(A) establish an escrow account to be used for assessment 
refunds; and 
(B) place funds in such account in accordance with para-
graph (2). 
(2) PLACEMENT OF FUNDS IN ACCOUNT.—The Board shall place 
in such account, from assessments collected during the period 
referred to in paragraph (1), an amount equal to the product 
obtained by multiplying the total amount of assessments col-
lected during such period by 10 percent. 
(3) RIGHT TO RECEIVE REFUND.—Subject to paragraphs (4), (5), 
and (6), any grower, grower-sheller, or importer shall have the 
right to demand and receive from the Board a one-time refund 
of assessments paid by or on behalf of such grower, grower-
sheller, or importer during the period referred to in paragraph 
(Dif-
(A) such grower, grower-sheller, or importer is required to 
pay such assessments; 
(B) such grower, grower-sheller, or importer does not 
support the program established under this subtitle; 
(C) such grower, grower-sheller, or importer demands 
such refund prior to the conduct of the referendum under 
section 1916(a); and 
(D) the plan is not approved pursuant to the referendum 
conducted under section 1916(a). 
(4) FORM OF DEMAND.—Such demand shall be made in accord-
ance with regulations, on a form, and within a time period 
prescribed by the Board. 
(5) MAKING OF REFUND.—Such refund shall be made on 
submission of proof satisfactory to the Board that such grower, 
grower-sheller, or importer paid the assessment for which 
refund is demanded. 
(6) PRORATION.—If— 
(A) the amount in the escrow account required by para-
graph (1) is not sufficient to refund the total amount of 
assessments demanded by eligible growers, grower-shellers, 
or importers; and 
(B) the plan is not approved pursuant to the referendum 
conducted under section 1916(a); 
the Board shall prorate the amount of such refunds among all 
eligible growers, grower-shellers, and importers who demand 
such refund. 
(7) PROGRAM APPROVED.—If the plan is approved pursuant to 
the referendum conducted under section 1916(a), all funds in the 
escrow account shall be returned to the Board for use by the 
Board in accordance with this subtitle. 
7 use 6008. 
SEC. 1913. PETITION AND REVIEW. 
(a) PETITION.— 
(1) IN GENERAL.—A person subject to a plan issued under this 
subtitle may file with the Secretary a petition— 
(A) stating that the plan, any provision of the plan, or any 
obligation imposed in connection with the plan is not in 
accordance with law; and 
(B) requesting a modification of the plan or. an exemption 
from the plan. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3851 
(2) HEARINGS.—The petitioner shall be given the opportunity 
for a hearing on the petition, on the record and in accordance 
with regulations issued by the Secretary. 
(3) RuuNG.—After such hearing, the Secretary shall make a 
ruling on the petition, which shall be final if in accordance with 
law. 
(b) REVIEW.— 
(1) COMMENCEMENT OF ACTION.—The district courts of the 
United States in any district in which a person who is a 
petitioner under subsection (a) resides or carries on business are 
hereby vested with jurisdiction to review the ruling on such 
person's petition, if a complaint for that purpose is filed within 
20 days after the date of the entry of a ruling by the Secretary 
under subsection (a). 
(2) PROCESS.—Service of process in such proceedings shall be 
conducted in accordance with the Federal Rules of Civil Proce-
dure. 
(3) REMANDS.—If the court determines that such ruling is not 
in accordance with law, the court shall remand the matter to 
the Secretary with directions either— 
(A) to make such ruling as the court shall determine to be 
in accordance with law; or 
(B) to take such further proceedings as, in the opinion of 
the court, the law requires. 
(4) ENFORCEMENT.—The pendency of proceedings instituted 
under subsection (a) shall not impede, hinder, or delay the 
Attorney General or the Secretary from taking any action 
under section 1914. 
SEC. 1914. ENFORCEMENT. 
7 USC 6009. 
(a) JURISDICTION.—The district courts of the United States shall 
have jurisdiction specifically to enforce, and to prevent and restrain 
a person from violating, this subtitle or any plan or regulation 
issued under this subtitle. 
Ot)) REFERRAL TO ATTORNEY GENERAL.—A civil action to be brought 
under this section shall be referred to the Attorney General for 
appropriate action, except that the Secretary is not required to refer 
to the Attorney General a violation of this subtitle or any plan or 
regulation issued under this subtitle if the Secretary believes that 
the administration and enforcement of this subtitle would be ade-
quately served by administrative action under subsection (c) or by 
providing a suitable written notice or warning to any person 
committing the violation. 
(c) CIVIL PENALTIES AND ORDERS.— 
(1) CIVIL PENALTIES.— 
(A) IN GENERAL.—A person who willfully violates any 
provision of this subtitle or any plan or regulation issued 
under this subtitle, or who fails to pay, collect, or remit emy 
assessment or fee required of the person under this subtitle 
or any plan or regulation issued under this subtitle, may be 
assessed by the Secretary a civil penalty of not less than 
$1,000 nor more than $10,000 for each such violation. 
(B) SEPARATE OFFENSE.—Each violation described in 
subparagraph (A) shall be a separate offense. 
(2) CEASE AND DESIST ORDERS.—In addition to or in lieu of such 
civil penalty, the Secretary may issue an order requiring such 
person to cease and desist from continuing such violation. 
104 STAT. 3852 
PUBLIC LAW 101-624—NOV. 28, 1990 
(3) NOTICE AND HEARING.—No penalty shall be gissessed or 
cease and desist order issued by the Secretary under this subsec-
tion unless the Secretary gives the person against whom the 
order is issued notice and opportunity for a hearing on the 
record with respect to such violation. 
(4) FINALITY.—The order of the Secretary assessing a penalty 
or imposing a cease and desist order shall be final and conclu-
sive unless the person against whom the order is issued files an 
appeal from the Secretary's order in accordance with subsection 
(d). 
(d) REVIEW BY DISTRICT COURT.— 
(1) COMMENCEMENT OF ACTION.—A person against whom a 
civil penalty is assessed or a cease £ind desist order is issued 
under subsection (c) may obtain review of such penalty or order 
in the district court of the United States for the district in 
which such person resides or does business, or in the United 
States District Court for the District of Columbia, by— 
(A) filing, within the 30-day period beginning on the date 
such penalty is assessed or order issued, a notice of appeal 
in such court; and 
(B) simultaneously sending a copy of the notice by cer-
tified mail to the Secretary. 
(2) RECORD.—The Secretary shall promptly file in such court a 
certified copy of the record on which the Secretary found that 
the person had committed a violation. 
(3) STANDARD OF REVIEW.—A finding of the Secretary shall be 
set aside only if the finding is found to be unsupported by 
substantial evidence. 
(e) FAILURE TO OBEY ORDERS.—Any person who fails to obey a 
ceEise and desist order after the order has become final and 
unappealable, or after the appropriate district court has entered a 
final judgment in favor of the Secretary, shall be subject to a civil 
penalty assessed by the Secretary, after opportunity for a hearing on 
the record and for judicial review under the procedures specified in 
subsections (c) and (d), of not more than $1,000 for each offense. Each 
day during which the failure continues shall be considered a sepa-
rate violation of such order. 
(f) FAILURE TO PAY PENALTY.—If a person fails to pay a civil 
penalty after it has become a final and unappealable order issued by 
the Secretary, or after the appropriate district court has entered a 
final judgment in favor of the Secretary, the Secretary shall refer 
the matter to the Attorney General for recovery of the amount 
assessed in the district court of the United States in any district in 
which the person resides or conducts business. In such action, the 
validity and appropriateness of such order imposing such civil pen-
alty shall not be subject to review. 
7 use 6010. 
SEC. 1915. INVESTIGATIONS AND POWER TO SUBPOENA. 
(a) IN GENERAL.—The Secretary may make such investigations as 
the Secretary determines necessary— 
(1) for the effective administration of this subtitle; or 
(2) to determine whether a person has engaged or is engaging 
in any act or practice that constitutes a violation of any provi-
sion of this subtitle, or of any plan, rule, or regulation issued 
under this subtitle. 
(b) POWER TO SUBPOENA.— 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3853 
(1) INVESTIGATIONS.—For the purpose of an investigation 
made under subsection (a), the Secretary is authorized to admin-
ister oaths and affirmations and to issue a subpoena to require 
the production of any records that are relevant to the inquiry. 
The production of any such records may be required from any 
place in the United States. 
(2) ADMINISTRATIVE 
HEARINGS.—For the purpose of an 
administrative hearing held under section 1913 or section 1914, 
the presiding officer is authorized to administer oaths and 
affirmations, subpoena witnesses, compel their attendance, take 
evidence, and require the production of any records that are 
relevant to the inquiry. Such attendance of witnesses and the 
production of any such records may be required from any place 
in the United States. 
(c) AID OF COURTS.—In case of contumacy by, or refusal to obey a 
subpoena issued to, any person, the Secretary may invoke the £iid of 
any court of the United States within the jurisdiction of which such 
investigation or proceeding is carried on, or where such person 
resides or carries on business, in order to enforce a subpoena issued 
by the Secretary under subsection (b). The court may issue an order 
requiring such person to comply with such a subpoena. 
(d) CONTEMPT.—Any failure to obey such order of the court may be 
punished by such court as a contempt thereof. 
(e) PROCESS.—Process in any such case may be served in the 
judicial district in which such person resides or conducts business or 
wherever such person may be found. 
(f) HEARING SITE.—The site of any hearings held under section 
1913 or 1914 shall be within the judicial district where such person 
resides or has a principal place of business. 
SEC. 1916. REQUIREMENT OF REFERENDUM. 
7 USC 6011. 
(a) IN GENERAL.—Not later than 24 months after the effective date 
of the plan first issued under section 1908, the Secretary shall 
conduct a referendum among growers, grower-shellers, and import-
ers, who during a representative period determined by the Secretary 
have been engaged in the production or importation of pecans, for 
the purpose of ascertaining whether growers, grower-shellers, and 
importers favor continuation, termination, or suspension of the 
plan. 
0>) OTHER REFERENDA.— 
(1) IN GENERAL.—After the referendum required under 
subsection (a), the Secretary shall hold a referendum on request 
of the Board or 10 percent or more of the total number of 
growers, grower-shellers, and importers, to determine if grow-
ers, grower-shellers, and importers favor the termination or 
suspension of the plan. 
(2) SUSPENSION OR TERMINATION.—The Secretary shall termi-
nate or suspend such plan, in accordance with section 191703), 
whenever the Secretary determines that such suspension or 
termination is favored by a majority of those voting in a ref-
erendum. 
(c) COSTS OF REFERENDUM.—The Secretary shall be reimbursed 
from any assessments collected by the Board for any expenses 
incurred by the Department in connection with the conduct of any 
referendum under this subtitle, except for the salaries of Govern-
ment employees. 
(d) MANNER.— 
104 STAT. 3854 
PUBLIC LAW 101-624—NOV. 28, 1990 
(1) IN GENERAL.—Referenda conducted pursuant to this sub-
title shall be conducted in such a manner as is determined by 
the Secretary. 
(2) ADVANCE REGISTRATION.—A grower, grower-sheller, or im-
porter who chooses to vote in any referendum conducted under 
this subtitle shall register in person prior to the voting period at 
the appropriate local office of the Agricultural Stabilization and 
Conservation Service, as determined by the Secretary, for such 
grower, grower-sheller, or by mailing such a request to the 
Secretary on behalf of an importer. 
(3) VOTING.—A grower, grower-sheller, or importer who votes 
in any referendum conducted under this subtitle shall vote in 
person at the appropriate local office of the Agricultural Sta-
bilization and Conservation Service, as determined by the Sec-
retary or by mail to the Secretary. 
(4) NOTICE.—Each Agricultural Stabilization and Conserva-
tion Service office shall notify all growers, grower-shellers, emd 
importers in the area of such office, as determined by the 
Secretary, at least 30 days prior to a referendum conducted 
under this subtitle. Such notice shall explain the registration 
and voting procedures established under this subsection. 
7 u s e 6012. 
SEC. 1917. SUSPENSION OR TERMINATION OF PLAN. 
(a) MANDATORY SUSPENSION OR TERMINATION.—The Secretary 
shall, whenever the Secretary finds that the plan or any provision of 
the plan obstructs or does not tend to effectuate the declared policy 
of this subtitle, terminate or suspend the operation of such plan or 
provision. 
0?) SUSPENSION OR TERMINATION.—If, as a result of any referen-
dum conducted under this subtitle, the Secretary determines that 
suspension or termination of a plan is favored by a majority of the 
growers, grower-shellers, and importers voting in the referendum, 
the Secretary shall— 
(1) within 6 months after making such determination, sus-
pend or terminate, as the case may be, collection of assessments 
under the plan; and 
(2) suspend or terminate, as the case may be, activities under 
the plan in an orderly manner as soon as practicable. 
(c) The termination or suspension of any plan, or any provision 
thereof, shall not be considered a plan within the meaning of this 
subtitle. 
7 u s e 6013. 
SEC. 1918. AUTHORIZATION OF APPROPRIATIONS. 
(a) IN GENERAL.—There are authorized to be appropriated for each 
fiscal year such sums as are necessary to carry out this subtitle. 
Ot)) ADMINISTRATIVE EXPENSES.—Funds appropriated to carry out 
this subtitle shall not be available for payment of the expenses or 
expenditures of the Board in administering any provision of any 
plan issued under this subtitle. 
Mushroom 
Promotion, 
Research, and 
Consumer 
Information Act 
of 1990. 
7 u s e 6101 note. 
Subtitle B—Mushrooms 
SEC. 1921. SHORT TITLE. 
This subtitle may be cited as the "Mushroom Promotion, 
Research, and Consumer Information Act of 1990". 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3855 
SEC. 1922. FINDINGS AND DECLARATION OF POLICY. 
7 USC 6101. 
(a) FINDINGS.—Congress finds that— 
(1) mushrooms are an important food that is a valuable part 
of the human diet; 
(2) the production of mushrooms plays a significant role in the 
Nation's economy in that mushrooms are produced by hundreds 
of mushroom producers, distributed through thousands of 
wholesale and retail outlets, and consumed by millions of people 
throughout the United States and foreign countries; 
(3) mushroom production benefits the environment by effi-
ciently using agricultural byproducts; 
(4) mushrooms must be high qugdity, readily available, han-
dled properly, and marketed efficiently to ensure that the bene-
fits of this important product are available to the people of the 
United States; 
(5) the maintenance and expansion of existing markets and 
uses, and the development of new markets and uses, for mush-
rooms are vital to the welfare of producers and those concerned 
with marketing and using mushrooms, as well as to the agricul-
tural economy of the Nation; 
(6) the cooperative development, financing, and implementa-
tion of a coordinated program of mushroom promotion, re-
search, and consumer information are necessary to maintain 
and expand existing markets for mushrooms; and 
(7) mushrooms move in interstate and foreign commerce, and 
mushrooms that do not move in such channels of commerce 
directly burden or affect interstate commerce in mushrooms. 
(b) PoucY.—It is declared to be the policy of Congress that it is in 
the public interest to authorize the establishment, through the 
exercise of the powers provided in this subtitle, of an orderly 
procedure for developing, financing through adequate assessments 
on mushrooms produced domestically or imported into the United 
States, and carrying out, an effective, continuous, and coordinated 
program of promotion, research, and consumer and industry 
information designed to— 
(1) strengthen the mushroom industry's position in the 
marketplace; 
(2) maintain and expand existing markets and uses for mush-
rooms; and 
(3) develop new markets and uses for mushrooms. 
(c) CONSTRUCTION.—Nothing in this subtitle may be construed to 
provide for the control of production or otherwise limit the right of 
individual producers to produce mushrooms. 
SEC. 1923. DEFINITIONS. 
7 USC 6102. 
As used in this subtitle— 
(1) COMMERCE.—The term "commerce" means interstate, for-
eign, or intreistate commerce. 
(2) CONSUMER INFORMATION.—The term "consumer informa-
tion" means information and programs that will assist consum-
ers and other persons in making evaluations and decisions 
regarding the purchase, preparation, and use of mushrooms. 
(3) COUNCIL.—The term "Council" means the Mushroom 
Council established under section 192503). 
(4) DEPARTMENT.—The term "Department" means the Depart-
ment of Agriculture. 
104 STAT. 3856 
PUBLIC LAW 101-624—NOV. 28, 1990 
(5) FIRST HANDLER.—The term "first handler" means any 
person, as described in an order issued under this subtitle, who 
receives or otherwise acquires mushrooms from a producer and 
prepares for marketing or markets such mushrooms, or who 
prepares for marketing or markets mushrooms of that person's 
own production. 
(6) IMPORTER.—The term "importer" means any person who 
imports, on average, over 500,000 pounds of mushrooms 
annually from outside the United States. 
(7) INDUSTRY INFORMATION.—The term "industry informa-
tion" means information and programs that are designed to 
lead to the development of new markets and marketing strate-
gies, increased efficiency, and activities to enhance the image of 
the mushroom industry. 
(8) MARKETING.—The term "marketing" means the sale or 
other disposition of mushrooms in any channel of commerce. 
(9) MUSHROOMS.—The term "mushrooms" means all varieties 
of cultivated mushrooms grown within the United States for the 
fresh market, or imported into the United States for the fresh 
market, that are marketed, except that such term shall not 
include mushrooms that are commercially marinated, canned, 
frozen, cooked, blanched, dried, packaged in brine, or otherwise 
processed, as may be determined by the Secretary. 
(10) PERSON.—The term "person" means any individual, 
group of individuals, partnership, corporation, association, 
cooperative, or any other legal entity. 
(11) PRODUCER.—The term "producer" means any person en-
gaged in the production of mushrooms who owns or who shares 
the ownership and risk of loss of such mushrooms and who 
produces, on average, over 500,000 pounds of mushrooms per 
year. 
(12) PROMOTION.—The term "promotion" means any action 
determined by the Secretary to enhance the image or desirabil-
ity of mushrooms, including paid advertising. 
(13) RESEARCH.—The term "research" means any type of 
study to advance the image, desirability, marketability, produc-
tion, product development, quality, or nutritional value of 
mushrooms. 
(14) SECRETARY.—The term "Secretary" means the Secretary 
of Agriculture. 
(15) STATE AND UNITED STATES.—The terms "State" and 
"United States" include the 50 States of the United States, the 
District of Columbia, and the Commonwealth of Puerto Rico. 
7 u s e 6103. 
SEC. 1924. ISSUANCE OF ORDERS. 
(a) IN GENERAL.—To effectuate the declared policy of section 
1922(b), the Secretary, subject to the procedures provided in subsec-
tion (b), shall issue orders under this subtitle applicable to produc-
ers, importers, and first handlers of mushrooms. Any such order 
shall be national in scope. Not more than one order shall be in effect 
under this subtitle at any one time. 
Qo) PROCEDURES.— 
(1) ISSUANCE OF AN ORDER.—The Secretary may propose the 
issuance of an order under this subtitle, or an association of 
mushroom producers or any other person that will be affected 
by this subtitle may request the issuance of, and submit a 
proposal for, such an order. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3857 
(2) PUBLICATION OF ORDER.—Not later than 60 days after the 
receipt of a request and proposal by an mterested person for an 
order, or when the Secretary determines to propose an order, 
the Secretary shall publish the proposed order and give due 
notice and opportunity for public comment on the proposed 
order. 
(3) ISSUANCE OF ORDER.—After notice and opportunity for 
public comment are given, as provided in paragraph (2), the 
Secretary shall issue the order, taking into consideration the 
comments received and including in the order provisions nec-
essary to ensure that the order is in conformity with the 
requirements of this subtitle. Such order shall be issued and, if 
approved by producers and importers of mushrooms as provided 
in section 1926(a), shall become effective not later than 180 days 
following publication of the proposed order. 
(c) AMENDMENTS.— 
(1) IN GENERAL.—The Secretary, from time to time, may 
amend any order issued under this section. 
(2) APPLICATION OF SUBTITLE.—The provisions of this subtitle 
applicable to an order shall be applicable to amendments to the 
order. 
SEC. 1925. REQUIRED TERMS IN ORDERS. 
7 USC 6104. 
(a) IN GENERAL.—Each order issued under this subtitle shall 
contain the terms and conditions prescribed in this section. 
G
>
) MUSHROOM COUNCIL.— 
(1) ESTABLISHMENT AND MEMBERSHIP OF COUNCIL.— 
(A) ESTABLISHMENT.—The order shall provide for the 
establishment of, and selection of members to, a Mushroom 
Council that shall consist of at least 4 members and not 
more than 9 members. 
(B) MEMBERSHIP.—Except as provided for in paragraph 
(2), the members of the Council shall be mushroom produc-
ers and importers appointed by the Secretary from nomina-
tions submitted by producers and importers in the manner 
authorized by the Secretary, except that no more than one 
member may be appointed to the Council from nominations 
submitted by any one producer or importer. 
(2) APPOINTMENTS.— 
(A) IN GENERAL.—In making appointments, the Secretary 
shall take into account, to the extent practicable, the geo-
graphical distribution of mushroom production throughout 
the United States, and the comparative volume of mush-
rooms imported into the United States. 
(B) UNITS.—In establishing such geographical distribu-
tion of mushroom production, a whole State shall be consid-
ered as a unit and such units shall be organized into 4 
regions that shall fairly represent the geographic distribu-
tion of mushroom production within the United States. 
(C) IMPORTERS.—Importers shall be represented as one 
region, which shall be separate from the regions established 
for mushrooms produced in the United States. 
(D) MEMBERS PER REGION.—The Secretary shall appoint 
one member from each region if such region produces or 
imports, on average, at least 35,000,000 pounds of mush-
rooms annually. 
104 STAT. 3858 
PUBLIC LAW 101-624—NOV. 28, 1990 
(E) ADDITIONAL MEMBERS.—Subject to the nine-member 
limit on the number of members on the Council provided in 
paragraph (1), the Secretary shall appoint an additional 
member to the Council from a region for each additional 
50,000,000 pounds of production or imports per year, on 
average, within the region. 
(F) For purposes of this paragraph, in determining aver-
age annual mushroom production in each of the 4 regions of 
the United States established under this paragraph, the 
Secretary shall only consider mushrooms produced by 
producers covered by this subtitle, as defined in section 
1923(11). 
(G) FAILURE TO NOMINATE,—If producers and importers 
fail to nominate individuals for appointment, the Secretary 
may appoint members on a basis provided for in the order. 
(3) TERMS; COMPENSATION.— 
(A) TERMS.—The term of appointment to the Council 
shall be for 3 years, except that the initial appointments 
shall to the extent practicable be proportionately for 1-year, 
2-year, and 3-year terms. 
(B) COMPENSATION.—Council members shall serve with-
out compensation but shall be reimbursed for their ex-
penses incurred in performing their duties as members of 
the Council. 
(c) POWERS AND DUTIES OF THE COUNCIL.—The order shall define 
the powers and duties of the Council, which shall include the 
following powers and duties— 
(1) to administer the order in accordance with its terms and 
provisions; 
(2) to make rules and regulations to effectuate the terms and 
provisions of the order; 
(3) to appoint members of the Council to serve on an executive 
committee; 
(4) to propose, receive, evaluate, approve and submit to the 
Secretary for approval under subsection (d) budgets, plans, and 
projects of mushroom promotion, research, consumer informa-
tion, and industry information, as well as to contract and enter 
into agreements with appropriate persons to implement such 
plans or projects; 
(5) to develop and propose to the Secretary voluntary quality 
and grade standards for mushrooms; 
(6) to receive, investigate, and report to the Secretary com-
plaints of violations of the order; 
(7) to recommend to the Secretary amendments to the order; 
and 
(8) to invest, pending disbursement under a plan or project, 
funds collected through assessments authorized under this sub-
title only in— 
(A) obligations of the United States or any gigency 
thereof; 
(B) general obligations of any State or any political sub-
division thereof; 
(C) any interest-bearing account or certificate of deposit 
of a bank that is a member of the Federal Reserve System; 
or 
(D) obligations fully guaranteed as to principal and 
interest by the United States, 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3859 
except that income from any such invested funds may only be 
used for any purpose for which the invested funds may be used. 
(d) PLANS AND BUDGETS.— 
(1) SUBMISSION TO SECRETARY.—The order shall provide that 
the Council shall submit to the Secretary for approval any plan 
or project of promotion, research, consumer information, or 
industry information. 
(2) BUDGETS.—The order shall require the Council to submit 
to the Secretary for approval budgets on a fiscal year basis of its 
anticipated expenses and disbursements in the implementation 
of the order, including projected costs of promotion, research, 
consumer information, and industry information plans and 
projects. 
(3) APPROVAL BY SECRETARY.—No plan or project of promotion, 
research, consumer information, or industry information, or 
budget, shall be implemented prior to its approval by the 
Secretary. 
(e) CONTRACTS AND AGREEMENTS.— 
(1) IN GENERAL.—To ensure efficient use of funds, the order 
shall provide that the Council may enter into contracts or 
agreements for the implementation and carrying out of plans or 
projects of mushroom promotion, research, consumer informa-
tion, or industry information, including contracts with producer 
organizations, and for the payment of the cost thereof with 
funds received by the Council under the order. 
(2) REQUIREMENTS.—Any such contract or agreement shall 
provide that— 
(A) the contracting party shall develop sind submit to the 
Council a plan or project together with a budget or budgets 
that shall show estimated costs to be incurred for such plan 
or project; 
(B) the plan or project shall become effective on the 
approval of the Secretary; and 
(C) the contracting party shall keep accurate records of Records. 
all of its transactions, account for funds received and ex-
pended, make periodic reports to the Council of activities 
conducted, and make such other reports as the Council or 
the Secretary may require. 
(3) PRODUCER ORGANIZATIONS.—The order shall provide that 
the Council may contract with producer organizations for any 
other services. Any such contract shall include provisions com-
parable to those provided in subparagraphs (A), (B), and (C) of 
paragraph (2). 
(f) BOOKS AND RECORDS OF COUNCIL.— 
(1) IN GENERAL.—The order shall require the Council to— 
(A) maintain such books and records (which shall be 
available to the Secretary for inspection and audit) as the 
Secretary may prescribe; 
(B) prepare and submit to the Secretary, from time to Reports, 
time, such reports as the Secretary may prescribe; and 
(C) account for the receipt and disbursement of all funds 
entrusted to the Council. 
(2) AUDITS.—The Council shall cause its books and records to 
be audited by an independent auditor at the end of each fiscal 
year, and a report of such audit to be submitted to the 
Secretary. 
(g) ASSESSMENTS.— 
104 STAT. 3860 
PUBLIC LAW 101-624—NOV. 28, 1990 
(1) COLLECTION AND PAYMENT.— 
(A) IN GENERAL.—The order shall provide that each first 
handler of mushrooms for the domestic fresh market pro-
duced in the United States shall collect, in the manner 
prescribed by the order, assessments from producers and 
remit the assessments to the Council. 
(B) IMPORTERS.—The order also shall provide that each 
importer of mushrooms for the domestic fresh market shall 
pay assessments to the Council in the manner prescribed by 
the order. 
(C) DIRECT MARKETING.—Any person marketing mush-
rooms of that person's own production directly to consum-
ers shall remit the assessments on such mushrooms directly 
to the Council in the manner prescribed in the order. 
(2) RATE OF ASSESSMENT.—The rate of assessment shall be 
determined and announced by the Council £ind may be changed 
by the Council at any time. The order shall provide that the 
rate of assessment— 
(A) for the first year of the order, may not exceed one-
quarter cent per pound of mushrooms; 
(B) for the second year of the order, may not exceed one-
third cent per pound of mushrooms; 
(C) for the third year of the order, may not exceed one-
half cent per pound of mushrooms; and 
(D) for the following years of the order, may not exceed 
one cent per pound of mushrooms. 
(3) USE OF ASSESSMENTS.—The order shall provide that the 
assessments shall be used for payment of the expenses in im-
plementing and administering this subtitle, with provision for a 
reasonable reserve, and to cover those administrative costs 
incurred by the Secretary in implementing and administering 
this subtitle, except for the salaries of Government employees 
incurred in conducting referenda. 
(4) LIMITATION ON COLLECTION.—No assessment may be col-
lected on mushrooms that a first handler certifies will be 
exported as mushrooms. 
(h) PROHIBITION.—The order shall prohibit any funds received by 
the Council under the order from being used in any manner for the 
purpose of influencing legislation or government action or policy, 
except that such funds may be used by the Council for the develop-
ment and recommendation to the Secretary of amendments to the 
order as prescribed in this subtitle and for the submission to the 
Secretary of recommended voluntary grade and quality standards 
for mushrooms under the Agricultural Marketing Act of 1946 (7 
U.S.C. 1621 et seq.). 
(i) BOOKS AND RECORDS.— 
(1) IN GENERAL.—The order shall require that each first han-
dler and importer of mushrooms maintain, and make available 
for inspection, such books and records as may be required by the 
order and file reports at the time, in the manner, and having 
the content prescribed by the order. 
(2) AVAILABILITY TO SECRETARY.—Such information shall be 
made available to the Secretary as is appropriate for the 
administration or enforcement of this subtitle, the order, or any 
regulation issued under this subtitle. 
(3) CONFIDENTIALITY.— 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3861 
(A) IN GENERAL.—Except as otherwise provided in this 
subtitle, all information obtained under paragraph (1) shall 
be kept confidential by all officers and employees of the 
Department and the Council, and agents of the Council, and 
only such information so obtained as the Secretary consid-
ers relevant may be disclosed to the public by them and 
then only in a suit or administrative hearing brought at the 
request of the Secretary, or to which the Secretary or any 
officer of the United States is a party, and involving the 
order. 
(B) LIMITATIONS.—Nothing in this paragraph may be con-
strued to prohibit— 
(i) the issuance of general statements, based on the 
reports, of the number of persons subject to the order 
or statistical data collected therefrom, which state-
ments do not identify the information furnished by any 
person; or 
(ii) the publication, by direction of the Secretary, of 
the name of any person violating the order, together 
with a statement of the particular provisions of the 
order violated by such person. 
(4) AVAILABIUTY OF INFORMATION.— 
(A) IN GENERAL.—Except as otherwise provided in this 
subtitle, information obtained under this subtitle may be 
made available to another agency of the Federal Govern-
ment for a civil or criminal law enforcement activity if the 
activity is authorized by law and if the head of the agency 
has made a written request to the Secretary specifying the 
particular information desired and the law enforcement 
activity for which the information is sought. 
(B) PENALTY.—Any person knowingly violating this 
subsection, on conviction, shall be subject to a fine of not 
more than $1,000 or to imprisonment for not more than 1 
year, or both, and if an officer or employee of the Council or 
the Department, shall be removed from office. 
(5) WITHHOLDING INFORMATION.—Nothing in this subtitle 
shall be construed to authorize the withholding of information 
from Congress. 
(j) OTHER TERMS AND CONDITIONS.—The order also shall contain 
such terms and conditions, not inconsistent with this subtitle, as are 
necessary to effectuate this subtitle, including provisions for the 
assessment of a penalty for each late pajrment of assessments under 
subsection (g). 
SEC. 1926. REFERENDA. 
7 USC 6105. 
(a) INITIAL REFERENDUM.— 
(1) IN GENERAL.—Within the 60-day period immediately 
preceding the effective date of an order issued under section 
19240)), the Secretary shall conduct a referendum among mush-
room producers and importers to ascertain whether the order 
shall go into effect. 
(2) APPROVAL OF ORDER.—The order shall become effective, as 
provided in section 19240)), if the Secretary determines that the 
order has been approved by a majority of the producers and 
importers voting in the referendum, which majority, on aver-
age, annually produces and imports into the United States more 
104 STAT. 3862 
PUBLIC LAW 101-624—NOV. 28, 1990 
than 50 percent of the mushrooms annually produced and 
imported by all those voting in the referendum. 
0?) SUCCEEDING REFERENDA.— 
(1) DETERMINATION CONCERNING ORDER.— 
(A) IN GENERAL.—Effective 5 years after the date on 
which an order becomes effective under section 19240?), the 
Secretary shall conduct a referendum among mushroom 
producers and importers to ascertain whether they favor 
continuation, termination, or suspension of the order. 
(B) REQUEST FOR REFERENDUM.—Effective beginning 3 
years after the date on which an order becomes effective 
under section 19240?), the Secretary, on request of a rep-
resentative group comprising 30 percent or more of the 
number of mushroom producers and importers, may con-
duct a referendum to siscertain whether producers and 
importers favor termination or suspension of the order. 
(2) SUSPENSION OR TERMINATION.—If, as a result of any ref-
erendum conducted under paragraph (1), the Secretary deter-
mines that suspension or termination of an order is favored by a 
majority of the producers and importers voting in the referen-
dum, which majority, on average, annually produces and im-
ports into the United States more than 50 percent of the 
mushrooms annually produced and imported by all those voting 
in the referendum, the Secretary shall— 
(A) within 6 months after making such determination, 
suspend or terminate, as appropriate, collection of assess-
ments under the order; and 
(B) suspend or terminate, £is appropriate, activities under 
the order in an orderly manner as soon as practicable. 
(c) MANNER.—Referenda conducted pursuant to this section shall 
be conducted in such a manner as is determined by the Secretary. 
7 use 6106. 
SEC. 1927. PETITION AND REVIEW. 
(a) PETITION.— 
(1) IN GENERAL.—A person subject to an order issued under 
this subtitle may file with the Secretary a petition— 
(A) stating that the order, any provision of the order, or 
any obligation imposed in connection with the order, is not 
in accordance with law; and 
(B) requesting a modification of the order or an exemp-
tion from the order. 
(2) HEARINGS.—The petitioner shall be given the opportunity 
for a hearing on the petition, in accordance with regulations 
issued by the Secretary. 
(3) RuuNG.—After such hearing, the Secretary shall make a 
ruling on the petition, which shall be final if in accordance with 
law. 
Qo) REVIEW.— 
(1) COMMENCEMENT OF ACTION.—The district courts of the 
United States in any district in which a person who is a 
petitioner under subsection (a) resides or carries on business are 
hereby vested with jurisdiction to review the ruling on such 
person's petition, if a complaint for that purpose is filed within 
20 days after the date of the entry of such ruling of the 
Secretary under subsection (a). 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3863 
(2) PROCESS.—Service of process in such proceedings shall be 
conducted in accordance with the Federal Rules of Civil Proce-
dure. 
(3) REMANDS.—If the court determines that such ruling is not 
in accordance with law, the court shall remand the matter to 
the Secretary with directions either— 
(A) to make such ruling as the court shall determine to be 
in accordance with law; or 
(B) to take such further action as, in the opinion of the 
court, the law requires. 
(4) ENFORCEMENT.—The pendency of proceedings instituted 
under subsection (a) shall not impede, hinder, or delay the 
Attorney General or the Secretary from obtaining relief pursu-
ant to section 1928. 
SEC. 1928. ENFORCEMENT. 
7 USC 6107. 
(a) JURISDICTION.—The several district courts of the United States 
are vested with jurisdiction specifically to enforce, and to prevent 
and restrain any person from violating, any order or regulation 
made or issued by the Secretary under this subtitle. 
(b) REFERRAL TO ATTORNEY GENERAL.—A civil action authorized to 
be brought under this section shall be referred to the Attorney 
General for appropriate action, except that the Secretary is not 
required to refer to the Attorney General a violation of this subtitle, 
or any order or regulation issued under this subtitle, if the Secretary 
believes that the administration and enforcement of this subtitle 
would be adequately served by administrative action under subsec-
tion (c) or suitable written notice or warning to the person who 
committed or is committing the violation. 
(c) CIVIL PENALTIES AND ORDERS.— 
(1) CIVIL PENALTIES.—A person who willfully violates a provi-
sion of any order or regulation issued by the Secretary under 
this subtitle, or who fails or refuses to pay, collect, or remit any 
assessment or fee duly required of the person under such order 
or regulation, may be assessed a civil penalty by the Secretary 
of not less than $500 nor more than $5,000 for each such 
violation. Each violation shall be a separate offense. 
(2) CEASE-AND-DESIST ORDERS.—In addition to or in lieu of such 
civil penalty, the Secretary may issue an order requiring such 
person to cease and desist from continuing such violation. 
(3) NOTICE AND HEARING.—No penalty shall be assessed or 
cease and desist order issued by the Secretary under this subsec-
tion unless the Secretary gives the person against whom the 
penalty is sissessed or the order is issued notice and opportu-
nity for a hearing before the Secretary with respect to such 
violation. 
(4) FINALITY.—The penalty assessed or cease and desist order 
issued under this subsection shall be final and conclusive unless 
the person against whom the penalty is assessed or the order is 
issued files an appeal with the appropriate district court of the 
United States in accordance with subsection (d). 
(d) REVIEW BY DISTRICT COURT.— 
(1) COMMENCEMENT OF ACTION.—Any person against whom a 
violation is found and a civil penalty assessed or cease and 
desist order issued under subsection (c) may obtain review of the 
penalty or order by— 
104 STAT. 3864 
PUBLIC LAW 101-624—NOV. 28, 1990 
(A) filing, within the 30-day period beginning on the date 
such penalty is assessed or order issued, a notice of appeal 
in the district court of the United States for the district in 
which such person resides or does business, or in the United 
States district court for the District of Columbia; and 
(B) simultaneously sending a copy of the notice by cer-
tified mail to the Secretary. 
(2) RECORD.—The Secretary shall promptly file in such court a 
certified copy of the record on which the Secretary found that 
the person had committed a violation. 
(3) STANDARD OF REVIEW.—A finding of the Secretary shall be 
set aside only if the finding is found to be unsupported by 
substantial evidence. 
(e) FAILURE TO OBEY ORDERS.—A person who fails to obey a cease 
and desist order after the order has become final and unappealable, 
or after the appropriate United States district court has entered a 
final judgment in favor of the Secretary, shall be subject to a civil 
penalty assessed by the Secretary, after opportunity for a hearing 
and for judicial review under the procedures specified in subsections 
(c) and (d), of not more than $500 for each offense. Each day during 
which such failure continues shall be considered as a separate 
violation of such order. 
(f) FAILURE TO PAY PENALTIES.—If a person fails to pay an assess-
ment of a civil penalty after it has become final and unappealable, 
or after the appropriate United States district court has entered 
final judgment in favor of the Secretary, the Secretary shall refer 
the matter to the Attorney General for recovery of the amount 
assessed in any district court in which the person resides or con-
ducts business. In such action, the validity and appropriateness of 
such civil penalty shall not be subject to review. 
7 u s e 6108. 
SEC. 1929. INVESTIGATIONS AND POWER TO SUBPOENA. 
(a) INVESTIGATIONS.—The Secretary may make such investigations 
as the Secretary considers necessary for the effective administration 
of this subtitle or to determine whether any person subject to this 
subtitle has engaged or is engaging in any act that constitutes a 
violation of this subtitle or of any order, rule, or regulation issued 
under this subtitle. 
O
t
)
) SUBPOENAS, OATHS, AND AFFIRMATIONS.— 
(1) IN GENERAL.—For the purpose of an investigation made 
under subsection (a), the Secretary may administer oaths and 
affirmations and issue a subpoena to require the production of 
any records that are relevant to the inquiry. The production of 
any such records may be required from any place in the United 
States. 
(2) 
ADMINISTRATIVE 
HEARINGS.—For the 
purpose of 
an 
administrative hearing held under section 1927 or section 1928, 
the presiding officer is authorized to administer oaths and 
affirmations, subpoena witnesses, compel their attendance, take 
evidence, and require the production of any records that are 
relevant to the inquiry. Such attendance of witnesses and the 
production of any such records may be required from any place 
in the United States. 
(c) AID OF COURTS.—In case of contumacy by, or refusal to obey a 
suljpoena issued to, any person, the Secretary may invoke the aid of 
any court of the United States within the jurisdiction of which such 
investigation or proceeding is carried on, or where such person 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3865 
resides or carries on business, in order to enforce a subpoena issued 
by the Secretary under subsection (b). The court may issue an order 
requiring such person to comply with such a subpoena. 
(d) C!oNTEMPT.—Any failure to obey such order of the court may be 
punished by such court as a contempt thereof. 
(e) PROCESS.—Process in any such case may be served in the 
judicial district in which such person resides or conducts business or 
wherever such person may be found. 
(f) HEARING SITE.—The site of any hearings held under section 
1927 or 1928 shall be within the judicial district where such person 
resides or has a principal place of business. 
SEC. 1930. SAVINGS PROVISION. 
Nothing in this subtitle may be construed to preempt or supersede 
any other program relating to mushroom promotion, research, 
consumer information, or industry information organized and oper-
ated under the laws of the United States or any State. 
SEC. 1931. SUSPENSION OR TERMINATION OF ORDERS. 
The Secretary shall, whenever the Secretary finds that the order 
or any provision of the order obstructs or does not tend to effectuate 
the declared policy of this subtitle, terminate or suspend the oper-
ation of such order or provision. The termination or suspension of 
any order, or any provision thereof, shall not be considered an order 
under the meaning of this subtitle. 
SEC. 1932. AUTHORIZATION OF APPROPRIATIONS. 
(a) IN GENERAL.—There are authorized to be appropriated for each 
fiscal year such sums as are necessary to carry out this subtitle. 
Ot)) ADMINISTRATIVE EXPENSES.—The funds so appropriated shall 
not be available for pajnnent of the expenses or expenditures of the 
Council in administering any provision of an order issued under this 
subtitle. 
SEC. 1933. REGULATIONS. 
The Secretary may issue such regulations as are necessary to 
carry out this subtitle. 
7 u s e 6109. 
7 u s e 6110. 
7 u s e 6111. 
7 u s e 6112. 
Subtitle C—Potatoes 
SEC. 1935. SHORT TITLE. 
This subtitle may be cited as the "Poteto Research and Promotion 
Act Amendments of 1990". 
SEC. 1936. FINDINGS AND DECLARATION OF POLICY. 
Section 302 of the Poteto Research and Promotion Act (7 U.S.C. 
2611) is amended— 
(1) in the first paragraph— 
(A) by inserting 
and foreign countries" after "United 
States" in the first sentence; 
(B) by inserting "and imported into the United States 
. from foreign countries" after "United States" in the second 
sentence; and 
(C) by striking the last sentence; 
(2) in the second paragraph— 
(A) in the first sentence— 
(i) by striking ", in a large part,"; and 
Potato Research 
and Promotion 
Act 
Amendments of 
1990. 
7 u s e 2611 note. 
104 STAT. 3866 
PUBLIC LAW 101-624—NOV. 28, 1990 
(ii) by inserting "or foreign" after "channels of inter-
state"; and 
(B) by striking the second sentence; and 
(3) in the fourth paragraph— 
(A) by inserting "and imported into the United States 
from foreign countries" after "commercial use"; and 
(B) by striking at the end thereof "produced in the United 
States" and inserting "and potato products". 
SEC. 1937. DEFINITIONS. 
Section 303 of the Potato Research and Promotion Act (7 U.S.C. 
2612) is amended— 
(1) in subsection (c)— 
(A) by striking "forty-eight contiguous" and inserting 
"50"; and 
(B) by inserting before the period at the end thereof 
", and grown in foreign countries and imported into the 
United States"; and 
(2) by adding at the end the following new subsection: 
"(g) The term 'importer' means any person who imports 
tablestock, frozen, or processed potatoes for ultimate consumption 
by humans or seed potatoes into the United States.". 
SEC. 1938. AUTHORITY TO ISSUE A PLAN. 
Section 304 of the Potato Research and Promotion Act (7 U.S.C. 
2613) is amended— 
(1) in the first sentence— 
(A) by striking "persons engaged in the handling of pota-
toes (hereinafter referred to as handlers)" and inserting 
"handlers and importers"; and 
(B) by inserting "or imported" after "potatoes handled"; 
£ind 
(2) in the third sentence— 
(A) by striking "forty-eight contiguous" and inserting 
"50"; and 
(B) by inserting before the period "and in foreign coun-
tries, if importers are subject to a plan and such potatoes 
are imported into the United States". 
SEC. 1939. NOTICE AND HEARINGS. 
Section 305 of the Potato Research and Promotion Act (7 U.S.C. 
2614) is amended— 
(1) in the first sentence by striking "potato producers" and 
inserting "interested persons"; and 
(2) in the second sentence by striking "by potato producers or 
by any other interested person or persons, including the Sec-
retary" and inserting "by any interested person, including the 
Secretary". 
SEC. 1940. REQUIRED TERMS IN PLANS. 
Section 308 of the Potato Research and Promotion Act (7 U.S.C. 
2617) is amended— 
(1) in subsection (b)— 
(A) by inserting after the first sentence the following: "If 
importers are subject to a plan, the board shall also include 
up to 5 representatives of importers, appointed by the 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3867 
Secretary from nominations submitted by importers in such 
manner as may be prescribed by the Secretary."; 
(B) after "If producers" by inserting "or importers"; and 
(C) in the last sentence by inserting ", or to importer 
approval when importers are subject to a plan," after 
"approval"; 
(2) in subsection (e)— 
(A) by striking "one cent" and inserting "2 cents"; and 
(B) by inserting ", and importers when importers are 
subject to a plan," after "producers"; 
(3) in subsection (fXD by inserting in the proviso ", or im-
porter approval when importers are subject to a plan," after 
"producer approval"; and 
(4) by striking subsection (g) and redesignating subsections (h), 
(i), and (j) as subsections (g), (h), and (i), respectively. 
SEC. 1941. PERMISSIVE TERMS IN PLANS. 
Section 309 of the Potato Research and Promotion Act (7 U.S.C. 
2618) is amended by redesignating subsection (g) as subsection (i) 
and inserting the following new subsections: 
"(g) Providing that any potato producer or importer against whose 
potatoes any assessment is made and collected under authority of 
this title and who is not in favor of supporting the research and 
promotion program as provided for under this title shall have the 
right to demand and receive from the board a refund of such 
assessment. Such demand shall be made personally by such pro-
ducer or importer in accordance with regulations and on a form and 
within a time period prescribed by the board and approved by the 
Secretary, but in no event less than 90 days, and upon submission of 
proof satisfactory to the board that the producer or importer paid 
the assessment for which refund is sought, and any such refund 
shall be made within 60 days after demand therefor. 
"(h) Providing for authority to assess imports of tablestock, frozen, 
or processed potatoes for ultimate consumption by humans and seed 
potatoes into the United States.". 
SEC. 1942. ASSESSMENTS. 
Section 310 of the Potato Research and Promotion Act (7 U.S.C. 
2619) is amended— 
(1) in subsection (a) by inserting "(1)" after "(a)" and adding at 
the end thereof the following new paragraph: 
"(2) when importers are subject to a plan, each importer 
designated by the board, pursuant to regulations issued under 
the plan, to make pajmient of assessments shall be responsible 
for pajonent to the board, as it may direct, of any assessment 
levied on potatoes. The assessment on imported tablestock, 
frozen, or processed potatoes for ultimate consumption by 
humans, and seed potatoes shall be established by the board so 
that the effective assessment shall equal that on domestic 
production and shall be paid by the importer to the board at the 
time of entry into the United States. Each such importer shall 
maintain a separate record including the total quantity of 
tablestock, frozen, processed potatoes for ultimate consumption 
by humans, and seed potatoes imported into the United States 
that are included under the terms of the plan as well as those 
that are exempt under such plan, and shall indicate such other 
39-194 O - 91 - 18 : QL 3 Part 5 
104 STAT. 3868 
PUBLIC LAW 101-624—NOV. 28, 1990 
information as may be prescribed by the board. No more than 
one assessment shall be made on any imported potatoes."; 
(2) in subsection G
>
) by inserting "and importers" after "Han-
dlers"; and 
(3) in subsection (cXl) by inserting "or importers" after 
"handlers". 
SEC. 1943. INVESTIGATION AND POWER TO SUBPOENA. 
Section 313 of the Potato Research and Promotion Act (7 U.S.C. 
2622) is amended in subsection (a)— 
(1) by striking in the first sentence "a handler or any other" 
and inserting "any"; and 
(2) in the last sentence by striking "handler or other". 
SEC. 1944. REQUIREMENT OF REFERENDUM. 
Section 314 of the Potato Research and Promotion Act (7 U.S.C. 
2623) is amended— 
(1) in subsection (a) by adding at the end the following sen-
tence: "When the issuance of a plan would subject importers to 
the terms and conditions of a plan, the Secretary also shall 
conduct the referendum among importers, who during a rep-
resentative period determined by the Secretary have been en-
gaged in the importation of potatoes, for the purpose of 
ascertaining whether the issuance of such plan is approved or 
favored by such importers."; 
(2) in subsection (b) by striking "two-thirds of the producers 
voting in such referendum, or by the producers of not less than 
two-thirds of the potatoes produced during the representative 
period by producers voting in such referendum, and by not less 
than a majority of the producers voting in such referendum" 
and inserting "a majority of the producers voting in such 
referendum or a majority of the producers and importers when 
the issuance of a plan would subject importers to the terms and 
conditions of a plan, voting in such referendum"; 
(3) in subsection (c) by inserting "and importers" after 
"producers"; and 
(4) in subsection (d) by inserting ", or any importer or the 
volume of potatoes imported by such importer,' after "pota-
toes". 
SEC. 1945. SUSPENSION OR TERMINATION OF PLANS. 
Section 315 of the Potato Research and Promotion Act (7 U.S.C. 
2624) is amended— 
(1) in subsection (b)— 
(A) by inserting ", or of the total number of producers £uid 
importers when importers are subject to a plan," after 
"potato producers" the first time it appears; 
(B) by inserting "and importers" after "potato producers" 
the second time it appears; 
(C) by inserting "and import" gifter "produce"; and 
(D) by striking "by the potato producers voting in the 
referendum" and inserting "and imported by those voting 
in the referendum"; and 
(2) by adding a new subsection (c) to read as follows: 
"(c) The termination or suspension of any plan, or any provision 
thereof, shall not be considered the issuance of a plan within the 
meaning of this part.". 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3869 
SEC. 1946. AMENDMENT PROCEDURE. 
7 USC 2625 note. 
(a) IN GENERAL.—Notwithstanding any provision of the Potato 
Research and Promotion Act (hereafter in this section referred to as 
the "Act"), the procedure specified in this section shall apply if a 
producer or a producer organization requests the Secretary of Agri-
culture (hereafter in this section referred to as the "Secretary") to 
amend the plan in effect under that Act (hereafter in this section 
referred to as the "plan") to— 
(1) subject importers to the terms and conditions of a plan, 
and 
(2) eliminate provisions for refunds of assessments for those 
not in favor of supporting the research and promotion program 
£is provided under that Act. 
The procedure under this section shall apply only in the case of the 
first such request received after the date of enactment of this Act. 
(b) PuBUCATiON OF PROPOSED AMENDMENTS.—The Secretary shall 
publish for public comment such proposed amendments to the plan 
within 60 days. 
(c) ISSUANCE OF FINAL AMENDMENTS.—Not later than 150 days 
after publication of such amendment, and after notice and oppor-
tunity for public comment, the Secretary shall issue the amend-
ments to the plan, as described in subsection (a), if the Secretary has 
reason to believe that such amendments will tend to effectuate the 
declared policy of this subtitle. 
(d) REFERENDUM.—Not later than 24 months after the date of 
issuance of such amendments to the plan, the Secretary shall con-
duct a referendum among producers and importers who, during a 
representative period determined by the Secretary, have been en-
gaged in the production or importation of potatoes. The amend-
ments shall be continued only if the Secretary determines that the 
amendments to the plan have been approved by a majority of the 
total number of producers and importers voting in the referendum. 
(e) REFUNDS.—The board shall— 
(1) establish an escrow account to be used for assessment 
refunds, and place funds in such account in accordance with 
paragraph (2) during the period beginning on the effective date 
of the amendments to the plan issued under subsection (c) and 
ending on the date of the referendum on the amendments to the 
plan; 
(2) place in the account established under paragraph (1), from 
assessments collected under the plan during the period referred 
to in paragraph (1), an amount equal to the product obtained by 
multiplying the total amount of assessments collected during 
such period by 10 percent; 
(3) subject to paragraphs (4), (5), and (6), provide that for the 
period referred to in paragraph (1) any producer or importer 
shall have the right to demand and receive from the board a 
one-time refund of assessments collected from such producer or 
importer during such period i
f
— 
c 
(A) such producer or importer is responsible for paying 
such assessments; 
(B) such producer or importer does not support the pro-
gram established under the plan; and 
(C) the amendments to the plan to eliminate provisions 
for refunds of assessments are not approved pursuant to a 
referendum conducted under subsection (d); 
104 STAT. 3870 
PUBLIC LAW 101-624—NOV. 28, 1990 
(4) require such demand to be made in accordance with 
regulations, on a form, and within a time period prescribed by 
the board; 
(5) require such refund to be made on submission of proof 
satisfactory to the board that such producer or importer paid 
the assessment for which refund is demanded; and 
(6) if the gimount in the escrow account required to be estab-
lished by paragraph (1) is not sufficient to refund the total 
amount of assessments demanded by all eligible producers and 
importers under this subsection, prorate the amount of such 
refunds among all eligible producers and importers who 
demand such refund. 
(f) TERMINATION.—If such amendments to the plan are not ap-
proved, the Secretary shall terminate the amendments and the plan 
shall continue in effect without the amendments. 
(g) AMENDMENT TO INCLUDE THE 50 STATES.—Notwithstanding any 
provision of the Act, the Secretary shall, upon request of a producer 
or a producer orgemization, issue an amendment to the plan to 
include the 50 States of the United States. Such amendment shall 
not be subject to a referendum. 
pJloSrSl'd 
Subtitle D—Limes 
Consumer 
of ?990^*^°" ^'^^ 
^^^- ^^^^' SHORT TITLE. 
7 use 6201 note. 
This subtitle may be cited as the "Lime Research, Promotion, and 
Consumer Information Act of 1990". 
7 u s e 6201. 
SEC. 1952. FINDINGS, PURPOSES, AND LIMITATIONS. 
(a) FINDINGS.—Congress finds that— 
(1) domestically produced limes are grown by many individual 
producers; 
(2) virtually all domestically produced limes are grown in the 
States of Florida and California; 
(3) limes move in interstate and foreign commerce, and limes 
that do not move in such channels of commerce directly burden 
or affect interstate commerce in limes; 
(4) in recent years, large quantities of limes have been 
imported into the United States; 
(5) the maintenance and expansion of existing domestic and 
foreign markets for limes and the development of additional 
and improved markets for limes are vital to the welfare of lime 
producers and other persons concerned with producing, market-
ing, or processing limes; 
(6) a coordinated program of research, promotion, and 
consumer information regarding limes is necessary for the 
maintenance and development of such markets; and 
(7) lime producers, lime producer-handlers, lime handlers, and 
lime importers are unable to implement and finance such a 
program without cooperative action. 
(b) PURPOSES.—The purposes of this subtitle are— 
(1) to authorize the establishment of an orderly procedure for 
the development and financing (through an adequate assess-
ment) of an effective and coordinated program of research, 
promotion, 
£md 
consumer 
information 
regarding 
limes 
designed— 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3871 
(A) to strengthen the position of the lime industry in 
domestic and foreign markets, £ind 
(B) to maintain, develop, and expand markets for limes; 
and 
(2) to treat domestically produced and imported limes equi-
tably, 
(c) LIMITATION.—Nothing in this subtitle shall be construed to 
require quality standards for limes, control the production of limes, 
or otherwise limit the right of the individual producers to produce 
limes. 
SEC. 1953. DEFINITIONS. 
7 USC 6202. 
As used in this subtitle: 
(1) BOARD.—The term "Board" means the Lime Board pro-
vided for under section 195503). 
(2) CONSUMER INFORMATION.—The term "consumer informa-
tion" means any action taken to provide information to, and 
broaden the understanding of, the general public regarding the 
use, nutritional attributes, and care of limes. 
(3) HANDLE.—The term "hsmdle" means to sell, purchgise, or 
package limes. 
(4) HANDLER.—The term "handler" means any person in the 
business of handling limes. 
(5) IMPORTER.—The term "importer" means gmy person who 
imports limes into the United States. 
(6) LIME.—The term "lime" means the fruit of a citrus 
aurantifolia tree for the fresh market. 
(7) MARKETING.—The term "marketing" means the sale or 
other disposition of limes in commerce. 
(8) ORDER.—The term "order" means a lime research, pro-
motion, and consumer information order issued by the Sec-
retary under section 1954(a). 
(9) PERSON.—The term "person" means any individual, group 
of individuals, partnership, corporation, Eissociation, coopera-
tive, or other legal entity. 
(10) PRODUCER.—The term "producer" means any person who 
produces limes in the United States for sale in commerce. 
(11) 
PRODUCER-HANDLER.—The 
term 
"producer-handler" 
means any person who is both a producer and handler of limes. 
(12) PROMOTION.—The term "promotion" means any action 
taken under this subtitle (including pgiid advertising) to present 
a favorable image for limes to the general public with the 
express intent of improving the competitive position and stimu-
lating the sale of limes. 
(13) RESEARCH.—The term "research" means £uiy type of re-
search relating to the use and nutritional value of limes and 
designed to advance the image, desirability, marketability, or 
quality of limes. 
(14) SECRETARY.—The term "Secretary" means the Secretary 
of Agriculture. 
(15) STATE AND UNITED STATES.—The term— 
(A) "State" means each of the 50 States of the United 
States, the District of Columbia, and the Commonwealth of 
Puerto Rico; and 
(B) "United States" means the 50 States of the United 
States, the District of Columbia, and the Commonwealth of 
Puerto Rico. 
104 STAT. 3872 
PUBLIC LAW 101-624—NOV. 28, 1990 
7 use 6203. 
SEC. 1954. ISSUANCE OF ORDERS. 
(a) IN GENERAL.—Subject to this subtitle, and to effectuate the 
declared purposes of tlus subtitle, the Secretary shall issue and, 
from time to time, amend lime research, promotion, and consumer 
information orders applicable to handlers, producers, producer-han-
dlers, and importers of limes. Any such order shall be national in 
scope. Not more than one order shall be in effect under this subtitle 
at any one time. 
(b) PROCEDURE.— 
(1) PROPOSAL FOR ISSUANCE OF ORDER.—Any person that will 
be affected by this subtitle may request the issuance of, and 
submit a proposal for, an order under this subtitle. 
(2) PROPOSED ORDER.—Not later than 60 days after the receipt 
of a request and proposal by an interested person for an order, 
the Secretary shall publish a proposed order and give due notice 
and opportunity for public comment on the proposed order. 
(3) ISSUANCE OF ORDER.—After notice and opportunity for 
public comment are given, as provided in paragraph (2), the 
Secretary shall issue an order, taking into consideration the 
comments received and including in the order provisions nec-
essary to ensure that the order is in conformity with the 
requirements of this subtitle. 
(4) EFFECTIVE DATE OF ORDER.—Such order shall be issued and 
become effective not later than 150 days following publication of 
the proposed order. 
(c) AMENDMENTS.—The Secretary, from time to time, may amend 
any order issued under this section. The provisions of this subtitle 
applicable to orders shall be applicable to amendments to orders. 
7 use 6204. 
SEC. 1955. REQUIRED TERMS IN ORDERS. 
(a) IN GENERAL.—An order issued by the Secretary under section 
1954(a) shall contain the terms and conditions described in this 
section and, except as provided in section 1956, no other terms or 
conditions. 
(b) LIME BOARD.—Such order shall provide for the establishment 
of a Lime Board as follows: 
(1) MEMBERSHIP.—The Board shall be composed of— 
(A) 7 members who are producers and who are not 
exempt from an assessment under subsection (dX5XA); 
• 
(B) 3 members who are importers and who are not 
exempt from an assessment under subsection (dX5XA); and 
(C) one member appointed from the gener£d public. 
(2) APPOINTMENT AND NOMINATION.— 
(A) APPOINTMENT.—The Secretary shall appoint the mem-
bers of the Board. 
(B) PRODUCERS.—The 7 members who are producers shall 
be appointed from individuals nominated by lime produc-
ers. 
(C) IMPORTERS.—The 3 members who are importers shall 
be appointed from individuals nominated by lime import-
ers. 
(D) PuBUC.—The public representative shall be appointed 
from nominations of the Board. 
(E) FAILURE TO NOMINATE.—If producers and importers 
fail to nominate individuals for appointment, the Secretary 
may appoint members on a basis provided for in the order. 
If the Board fails to nominate a public representative, such 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3873 
member may be appointed by the Secretary without a 
nomination. 
(F) INITIAL BOARD.—The Secretary shall establish an ini-
tial Board from among nominations solicited by the Sec-
retary. For the purpose of obtaining nominations for the 
members of the initial Board described in paragraph (1), the 
Secretary shall perform the functions of the Board under 
this subsection as the Secretary determines necessary and 
appropriate. 
(3) ALTERNATES.—The Secretary shall appoint an alternate for 
each member of the Board. An alternate shall— 
(A) be appointed in the same manner as the member for 
whom such individual is an alternate; and 
(B) serve on the Board if such member is absent from a 
meeting or is disqualified under paragraph (5). 
(4) TERMS.—Members of the Board shall be appointed for a 
term of 3 years. Of the members first appointed— 
(A) 3 members shall be appointed for a term of 1 year; 
(B) 4 members shall be appointed for a term of 2 years; 
and 
(C) 4 members shall be appointed for a term of 3 years; 
as designated by the Secretary at the time of appointment. 
(5) REPLACEMENT.—If a member or alternate of the Board who 
was appointed as a producer, importer, or public representative 
ceases to belong to the group for which such member was 
appointed, such member or alternate shall be disqualified from 
serving on the Board. 
(6) COMPENSATION.—Members and alternates of the Board 
shall serve without pay. 
(7) TRAVEL EXPENSES.—While away from their homes or regu-
lar places of business in the performance of duties for the 
Board, members and alternates shall be allowed travel ex-
penses, including a per diem allowance in lieu of subsistence, in 
the same manner as persons employed intermittently in 
Government service are allowed travel expenses under section 
5703 of title 5, United States Code. 
(8) POWERS AND DUTIES.—The Board shall— 
(A) administer orders issued by the Secretary under sec-
tion 1954(a), and amendments to such orders, in accordance 
with their terms and provisions and consistent with this 
subtitle; 
(B) prescribe rules and regulations to effectuate the terms 
and provisions of such orders; 
(C) receive, investigate, and report to the Secretary 
accounts of violations of such orders; 
(D) make recommendations to the Secretary with respect 
to amendments that should be made to such orders; and 
(E) employ a manager and staff. 
(c) BUDGETS AND PLANS.—^Such order shall provide for periodic 
budgets and plans as follows: 
(1) BUDGETS.—The Board shall prepare and submit to the 
Secretary a budget (on a fiscal period basis determined by the 
Secretary) of the anticipated expenses and disbursements of the 
Board in the administration of the order, including probable 
costs of research, promotion, and consumer information. A 
budget shall take effect on the approval of the Secretary. 
Regulations. 
Reports. 
104 STAT. 3874 
PUBLIC LAW 101-624—NOV. 28, 1990 
(2) PLANS.—Each budget shall include a plan for research, 
promotion, and consumer information regarding limes. A plan 
under this paragraph shall take effect on the approval of the 
Secretary. The Board may enter into contracts and agreements, 
with the approval of the Secretary, for— 
(A) the development and carrying out of such plan; and 
(B) the payment of the cost of such plan with funds 
collected pursuant to this subtitle. 
(d) ASSESSMENTS.—Such order shall provide for the imposition and 
collection of assessments with regard to the production and importa-
tion of limes as follows: 
(1) RATE.—The eissessment rate shall not exceed $.01 per 
pound of limes. 
(2) COLLECTION BY FIRST HANDLERS.—Except as provided in 
paragraph (4), the first handler of limes shall— 
(A) be responsible for the collection from the producer, 
and payment to the Board, of assessments under this 
subsection; and 
(B) maintain a separate record of the limes of each pro-
ducer whose limes are so handled, including the limes 
owned by the handler. 
(3) PRODUCER-HANDLERS.—For purposes of paragraph (2), a 
producer-handler shall be considered the first handler of limes 
produced by such producer-handler. 
(4) IMPORTERS.—The assessment on imported limes shall be 
paid by the importer at the time of entry into the United States 
and shall be remitted to the Board. 
(5) DE MINIMIS EXCEPTION.—The following persons are exempt 
from an assessment under this subsection— 
(A) a producer who produces less than 35,000 pounds of 
limes per year; 
(B) a producer-handler who produces and handles less 
than 35,000 pounds of limes per year; and 
(C) an importer who imports less than 35,000 pounds of 
limes per year. 
(6) CLAIMING AN EXEMPTION.—To claim an exemption under 
paragraph (5) for a particular year, a person shall submit an 
application to the Board— 
(A) stating the basis for such exemption; and 
(B) certifying that such person will not exceed the limita-
tion required for such exemption in such year. 
(e) USE OF ASSESSMENTS.— 
(1) IN GENERAL.—Such order shall provide that funds paid to 
the Board as assessments under subsection (d)— 
(A) may be used by the Board to— 
(i) pay for research, promotion, and consumer 
information described in the budget of the Board under 
subsection (c) and for other expenses incurred by the 
Board in the administration of an order; 
(ii) pay such other expenses for the administration, 
maintenance, and functioning of the Board as may be 
authorized by the Secretary; and 
(iii) fund a reserve established under section 1956(4); 
and 
(B) shall be used to pay the expenses incurred by the 
Secretary, including salaries and expenses of government 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3875 
employees in implementing and administering the order, 
except as provided in paragraph (2). 
(2) REFERENDA.—Such order shall provide that the Board 
shall reimburse the Secretary, from assessments collected under 
subsection (d), for any expenses incurred by the Secretary in 
conducting referenda under this subtitle, except for the salaries 
of Government employees. 
(f) FALSE CLAIMS.—Such order shall provide that any promotion 
funded with assessments collected under subsection (d) may not 
make— 
(1) any false or unwarranted claims on behalf of limes; and 
(2) any false or unwarranted statements with respect to the 
attributes or use of any product that competes with limes for 
sale in commerce. 
(g) PROHIBITION ON USE OF FUNDS.—Such order shall provide that 
funds collected by the Board under this subtitle through assess-
ments authorized by this subtitle may not, in any manner, be used 
for the purpose of influencing legislation or governmental policy or 
action, except for making recommendations to the Secretary as 
provided for in this subtitle. 
(h) BOOKS, RECORDS, AND REPORTS.— 
(1) BY THE BOARD.—Such order shall require the Board— 
(A) to maintain books and records with respect to the 
receipt and disbursement of funds received by the Board; 
(B) to submit to the Secretary from time to time such 
reports as the Secretary may require for appropriate 
accounting; and 
(C) to submit to the Secretary at the end of each fiscal 
year a complete audit report regarding the activities of the 
Board during such fiscal year. 
(2) BY OTHERS.—So that information and data will be available 
to the Board and the Secretary that is appropriate or necessary 
for the effectuation, administration, or enforcement of this 
subtitle (or any order or regulation issued under this subtitle), 
such order shall require handlers, producer-handlers, and 
importers who are responsible for the collection, payment, or 
remittance of assessments under subsection (d)— 
(A) to maintain and make available for inspection by the 
employees of the Board and the Secretary such books and 
records as may be required by the order; and 
(B) to file, at the times, in the manner, and having the 
content prescribed by the order, reports regarding the 
collection, payment, or remittance of such assessments. 
(i) CONFIDENTIALITY.— 
(1) IN GENERAL.—Such order shall require that all informa-
tion obtained pursuant to subsection (h)(2) shall be kept con-
fidential by all officers and employees of the Department and of 
the Board. Only such information as the Secretary considers 
relevant shall be disclosed to the public and only in a suit or 
administrative hearing, brought at the request of the Secretary 
or to which the Secretary or any officer of the United States is a 
party, involving the order with respect to which the information 
was furnished or acquired. 
(2) LIMITATIONS.—Nothing in this subsection prohibits— 
(A) issuance of general statements based on the reports of 
a number of handlers, producer-handlers, and importers 
104 STAT. 3876 
PUBLIC LAW 101-624—NOV. 28, 1990 
subject to an order, if the statements do not identify the 
information furnished by any person; or 
(B) the publication by direction of the Secretary, of the 
name of any person violating an order issued under section 
1954(a), together with a statement of the particular provi-
sions of the order violated by such person. 
0') WITHHOLDING INFORMATION.—Nothing in this subtitle shall be 
construed to authorize the withholding of information 
from 
Congress. 
7 u s e 6205. 
SEC.1956. PERMISSIVE TERMS IN ORDERS. 
On the recommendation of the Board and with the approval of the 
Secretary, an order issued under section 1954(a) may— 
(1) provide authority to the Board to exempt from such order 
limes exported from the United States, subject to such safe-
guards as the Board may establish to ensure proper use of the 
exemption; 
(2) provide authority to the Board to designate different han-
dler payment and reporting schedules to recognize differences 
in marketing practices and procedures; 
(3) provide that the Board may convene from time to time 
working groups drawn from producers, handlers, producer-han-
dlers, importers, exporters, or the general public to assist in the 
development of research and marketing programs for limes; 
(4) provide authority to the Board to accumulate reserve 
funds from assessments collected pursuant to section 1955(d) to 
permit an effective and continuous coordinated program of 
research, promotion, and consumer information, in years in 
which production and assessment income may be reduced, 
except that any reserve fund so established may not exceed the 
amount budgeted for operation of this subtitle for 1 year; 
(5) provide authority to the Board to use, with the approval of 
the Secretary, funds collected under section 1955(d) for the 
development and expansion of lime sales in foreign markets; 
and 
(6) provide for terms and conditions— 
(A) incidental to, and not inconsistent with, the terms and 
conditions specified in this subtitle; and 
(B) necessary to effectuate the other provisions of such 
order. 
7 u s e 6206. 
SEC. 1957. PETITION AND REVIEW. 
(a) PETITION.— 
(1) IN GENERAL.—A person subject to an order may file with 
the Secretary a petition— 
(A) stating that such order, a provision of such order, or 
an obligation imposed in connection with such order is not 
in accordance with law; and 
(B) requesting a modification of the order or an exemp-
tion from the order. 
(2) HEARINGS.—A person submitting a petition under para-
graph (1) shall be given an opportunity for a hearing on the 
petition, in accordance with regulations issued by the Secretary. 
(3) RULING.—After the hearing, the Secretary shall make a 
ruling on the petition which shall be final if in accordance with 
law. 
(b) REVIEW.— 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3877 
(1) COMMENCEMENT OF ACTION.—The district courts of the 
United States in any district in which such person who is a 
petitioner under subsection (a) resides or carries on business are 
hereby vested with jurisdiction to review the ruling on such 
person's petition, if a complaint for that purpose is filed within 
20 days after the date of the entry of a ruling by the Secretary 
under subsection (a). 
(2) PROCESS.—Service of process in such proceedings shall be 
conducted in accordance with the Federal Rules of Civil Proce-
dure. 
(3) REMANDS.—If the court determines that the ruling is not 
in accordance with law, the court shall remand the matter to 
the Secretary with directions either— 
(A) to make such ruling as the court shall determine to be 
in accordance with law; or 
(B) to take such further action as, in the opinion of the 
court, the law requires. 
(4) ENFORCEMENT.—The pendency of proceedings instituted 
pursuant to subsection (a) shall not impede, hinder, or delay the 
Attorney General or the Secretary from obtaining relief pursu-
ant to section 1958. 
SEC. 1958. ENFORCEMENT. 
7 USC 6207. 
(a) JURISDICTION.—Each district court of the United States shall 
have jurisdiction specifically to enforce, and to prevent and restrain 
any person from violating, any order or regulation made or issued 
by the Secretary under this subtitle. 
(b) REFERRAL TO ATTORNEY GENERAL.—A civil action authorized to 
be brought under this section shall be referred to the Attorney 
General for appropriate action, except that the Secretary is not 
required to refer to the Attorney General a violation of this subtitle, 
or any order or regulation issued under this subtitle, if the Secretary 
believes that the administration and enforcement of this subtitle 
would be adequately served by administrative action under subsec-
tion (c) or suitable written notice or warning to any person commit-
ting the violation. 
(c) CIVIL PENALTIES AND ORDERS.— 
(1) CIVIL PENALTIES.—Any person who willfully violates any 
provision of any order or regulation issued by the Secretary 
under this subtitle, or who fails or refuses to pay, collect, or 
remit any assessment or fee duly required of the person under 
the order or regulation, may be assessed a civil penalty by the 
Secretary of not less than $500 nor more than $5,000 for each 
such violation. Each violation shall be a separate offense. 
(2) CEASE AND DESIST ORDERS.—In addition to or in lieu of such 
civil penalty, the Secretary may issue an order requiring such 
person to cease and desist from continuing such violation. 
(3) NOTICE AND HEARING.—No order gissessing a penalty or 
cease and desist order may be issued by the Secretary under this 
subsection unless the Secretary gives the person Eigainst whom 
the order is issued notice and opportunity for a hearing on the 
record before the Secretary with respect to such violation. 
(4) FINALITY.—The order of the Secretary assessing a penalty 
or imposing a cease and desist order shall be final and conclu-
sive unless the person against whom the order is issued files an 
appeal from such order with the appropriate district court of 
the United States, in accordance with subsection (d). 
104 STAT. 3878 
PUBLIC LAW 101-624—NOV. 28, 1990 
(d) REVIEW BY UNITED STATES DISTRICT COURT.— 
(1) COMMENCEMENT OF ACTION.—Any person against whom a 
violation is found and a civil penalty assessed or cease and 
desist order issued under subsection (c) may obtain review of the 
penalty or order in the district court of the United States for the 
district in which such person resides or does business, or the 
United States district court for the District of Columbia, by— 
(A) filing a notice of appeal in such court not later than 
30 days after the date of such order; and 
(B) simultaneously sending a copy of such notice by cer-
tified mail to the Secretary. 
(2) RECORD.—The Secretary shall promptly file in such court a 
certified copy of the record on which the Secretary found that 
the person had committed a violation. 
(3) STANDARD OF REVIEW.—A finding of the Secretary shall be 
set aside only if the finding is found to be unsupported by 
substantial evidence. 
(e) FAILURE TO OBEY ORDERS.—Any person who fails to obey a 
cease and desist order issued by the Secretary after the order has 
become final and unappealable, or after the appropriate United 
States district court has entered a final judgment in favor of the 
Secretary, shall be subject to a civil penalty assessed by the Sec-
retary, after opportunity for a hearing and for judicial review under 
the procedures specified in subsections (c) and (d), of not more than 
$500 for each offense. Each day during which such failure continues 
shall be considered a separate violation of such order. 
(f) FAILURE TO PAY PENALTIES.—If a person fails to pay an assess-
ment of a civil penalty after it has become a final and unappealable 
order issued by the Secretary, or after the appropriate United States 
district court has entered final judgment in favor of the Secretary, 
the Secretary shall refer the matter to the Attorney General for 
recovery of the amount assessed in the district court of the United 
States in any district in which the person resides or conducts 
business. In such action, the validity and appropriateness of the 
final order imposing such civil penalty shall not be subject to review. 
7 use 6208. 
SEC. 1959. INVESTIGATIONS AND POWER TO SUBPOENA. 
(a) IN GENERAL.—The Secretary may make such investigations as 
the Secretary considers necessary— 
(1) for the effective carrying out of the responsibilities of the 
Secretary under this subtitle; or 
(2) to determine whether a person subject to the provisions of 
this subtitle has engaged or is engaging in any act that con-
stitutes a violation of any provision of this subtitle, or any 
order, rule, or regulation issued under this subtitle. 
(h) POWER TO SUBPOENA.— 
(1) INVESTIGATIONS.—For the purpose of an investigation 
made under subsection (a), the Secretary may administer oaths 
and affirmations and may issue a subpoena to require the 
production of any records that are relevant to the inquiry. The 
production of any such records may be required from any place 
in the United States. 
(2) 
ADMINISTRATIVE 
HEARINGS.—For 
the 
purpose 
of 
an 
administrative hearing held under section 1957 or section 1958, 
the presiding officer is authorized to administer oaths and 
affirmations, subpoena witnesses, compel their attendance, take 
evidence, and require the production of any records that are 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3879 
relevant to the inquiry. Such attendance of witnesses and the 
production of any such records may be required from any place 
in the United States. 
(c) AID OF COURTS.—In case of contumacy by, or refusal to obey a 
subpoena to, any person, the Secretary may invoke the aid of any 
court of the United States within the jurisdiction of which such 
investigation or proceeding is carried on, or where such person 
resides or carries on business, in order to enforce a subpoena issued 
by the Secretary under subsection (b). The court may issue an order 
requiring such person to comply with such a subpoena. 
(d) CONTEMPT.—Any failure to obey such order of the court may be 
punished by such court as a contempt thereof. 
(e) PROCESS.—Process in any such CEise may be served in the 
judicial district of which such person resides or conducts business or 
wherever such person may be found. 
(f) HEARING SITE.—The site of any hearings held under section 
1957 or 1958 shall be within the judicial district where such person 
is an inhabitant or has a principal place of business. 
SEC. I960. INITIAL REFERENDUM. 
7 USC 6209. 
(a) REQUIREMENT.—Not later than 2 years after the date on which 
the Secretary first issues an order under section 1954(a), the Sec-
retary shall conduct a referendum among producers, producer-han-
dlers, and importers who— 
(1) are not exempt from assessment under section 1955(dX5); 
and 
(2) produced or imported limes during a representative period 
as determined by the Secretary. 
(b) PURPOSE OF REFERENDUM.—The referendum referred to in 
subsection (a) is for the purpose of determining whether the issuance 
of the order is approved or favored by not less than a majority of the 
producers, producer-handlers, and importers voting in the referen-
dum. The order shall continue in effect only with such a majority. 
(c) CoNFiDENTiAUTY.—The ballots and other information or re-
ports that reveal, or tend to reveal, the vote of any person under this 
section, or section 1961, shall be held strictly confidential and shall 
not be disclosed. 
(d) REFUND OF ASSESSMENTS FROM ESCROW ACCOUNT.— 
(1) IN GENERAL.—A portion of the assessments collected from 
producers, producer-handlers, and importers prior to announce-
ment of the results of the referendum provided for in this 
section shall be held in an escrow account until the results of 
the referendum are published by the Secretary. The amount in 
the escrow account shall be equEil to the product obtained by 
multipl}dng the total amount of assessments collected during 
such period by 10 percent. 
(2) APPROVAL OF ORDER.—If the order is approved by a major-
ity of the producers, producer-handlers, and importers voting in 
the initial referendum under subsection (a), the funds in the 
escrow account shall be released to be used for the purposes of 
this subtitle. 
(3) DISAPPROVAL OF ORDER.— 
(A) PRORATION.—If— 
(i) the eimount in the escrow account required by 
paragraph (1) is not sufficient to refund the total 
amount of assessments demanded by producers, pro-
ducer-handlers, or importers; and 
104 STAT. 3880 
PUBLIC LAW 101-624—NOV. 28, 1990 
(ii) the plan is not approved pursuant to the referen-
dum conducted under subsection (a); 
the Board shall prorate the simount of such refunds among 
all eligible producers, producer-handlers, or importers who 
demand such refund. 
(B) RIGHT TO REFUND.—A producer, producer-handler, or 
importer shall be eligible to receive a refund— 
(i) if demand is made personally, in accordance with 
regulations and on a form and within a time period 
prescribed by the Board, but in no event less than 90 
days after the date of publication of the results of the 
referendum; and 
(ii) on submission of proof satisfactory to the Board 
that the person paid the assessment for which refund is 
sought emd did not collect the assessment from another 
person. 
(C) SURPLUS FUNDS.—Any funds not refunded under this 
paragraph shall be released to be used to carry out this 
subtitle. 
7 use 6210. 
SEC. 1961. SUSPENSION AND TERMINATION. 
(a) FINDING OF SECRETARY.—If the Secretary finds that an order 
issued under section 1954(a), or a provision of such order, obstructs 
or does not tend to effectuate the purposes of this subtitle, the 
Secretary shall terminate or suspend the operation of such order or 
provision. 
(b) PERIODIC REFERENDA.—The Secretary may periodically conduct 
a referendum to determine if lime producers, producer-hemdlers, 
and importers favor the continuation, termination, or suspension of 
any order issued under section 1954(a) and in effect at the time of 
such referendum. 
(c) REQUIRED REFERENDA.—The Secretary shall hold a referendum 
under subsection (b)— 
(1) at the request of the Board; or 
(2) if not less than 10 percent of the lime producers, producer-
handlers, and importers subject to assessment under this sub-
title submit a petition requesting such a referendum. 
(d) LIMITATION.—The termination or suspension of any order, or 
any provision thereof, shall not be considered an order within the 
meaning of this subtitle. 
(e) VOTE.—The Secretary shall suspend or terminate the order at 
the end of the marketing year if the Secretary determines that— 
(1) the suspension or termination of the order is favored by 
not less than a majority of those persons voting in a referendum 
under subsection (b); and 
(2) the producers, producer-handlers, and importers compris-
ing this majority produce and import more than 50 percent of 
the volume of limes produced and imported by those voting in 
the referendum. 
7 use 6211. 
SEC. 1962. AUTHORIZATION OF APPROPRIATIONS. 
(a) IN GENERAL.—There are authorized to be appropriated for each 
fiscal year such funds as are necessary to carry out this subtitle. 
(b) ADMINISTRATIVE EXPENSES.—The funds so appropriated shedl 
not be available for pajonent of the expenses or expenditures of the 
Board in administering any provisions of an order issued under this 
subtitle. 
PUBLIC LAW 101-624—NOV. 28, 1990 
SEC. 1963. REGULATIONS. 
104 STAT. 3881 
7 u s e 6212. 
The Secretary may issue such regulations £is are necessary to 
carry out this subtitle. 
Subtitle E—Soybeans 
SEC. 1965. SHORT TITLE. 
This subtitle may be cited as the 
and Consumer Information Act", 
'Soybean Promotion, Research, 
SEC. 1966. FINDINGS AND DECLARATION OF POLICY. 
(a) FINDINGS.—Congress finds that— 
(1) soybeans are an important source of nutritious foods that 
are a valuable part of the human diet and are an important 
feedstuff for the livestock industry; 
(2) the production of soybeans plays a significant role in the 
economy of the United States in that soybeans are produced by 
thousands of soybean producers, processed by numerous 
processing entities, and soybeans and soybean products pro-
duced in the United States are consumed by people and live-
stock throughout the United States and foreign countries; 
(3) soybeans and soybean products should be readily available 
and marketed efficiently to ensure that consumers have an 
adequate supply of soybean products at a reasonable price; 
(4) the maintenance and expansion of existing markets and 
development of new markets for soybeans and soybean products 
are vital to the welfare of soybean producers and processors and 
those concerned with marketing soybeans and soybean prod-
ucts, as well as to the general economy of the United States, and 
are necessary to ensure the ready availability and efficient 
marketing of soybeans and soybean products; 
(5) there exist established State and national organizations 
conducting soybean promotion, research, and consumer edu-
cation programs that are valuable to the efforts of promoting 
the consumption of soybeans and soybean products; 
(6) the cooperative development, financing, and implementa-
tion of a coordinated national program of soybean promotion, 
research, consumer information, and industry information are 
necessary to maintain and expand existing markets and develop 
new markets for soybeans and soybean products; and 
(7) soybeans and soybean products move in interstate and 
foreign commerce, and soybeans and soybean products that do 
not move in such channels of commerce directly burden or 
affect interstate commerce in soybeans and soybean products. 
(b) PoucY.—Congress declares that it is in the public interest to 
authorize the establishment, through the exercise of the powers 
provided in this subtitle, of an orderly procedure for developing, 
financing through assessments on domestically-produced soybeans, 
and implementing a program of promotion, research, consumer 
information, and industry information designed to strengthen the 
soybean industry's position in the marketplace, to maintain and 
expand existing domestic and foreign markets and uses for soybeans 
and soybean products, and to develop new markets and uses for 
soybeans and soybean products. 
Soybean 
Promotion, 
Research, and 
Consumer 
Information Act. 
7 u s e 6301 note. 
7 u s e 6301. 
104 STAT. 3882 
PUBLIC LAW 101-624—NOV. 28, 1990 
(c) CONSTRUCTION.—Nothing in this subtitle may be construed to 
provide for the control of production or otherwise limit the right of 
individual producers to produce soybeans. 
7 use 6302. 
SEC. 1967. DEFINITIONS. 
As used in this subtitle: 
(1) BOARD.—The term "Board" means the United Soybean 
Board established under section 1969(b). 
(2) COMMERCE.—The term "commerce" includes interstate, 
foreign, and intrastate commerce. 
(3) COMMITTEE.—The term "Committee" means the Soybean 
Program Coordinating Committee established under section 
1969(g). 
(4) CONSUMER INFORMATION.—The term "consumer informa-
tion" means information that will assist consumers and other 
persons in making evaluations and decisions regarding the 
purchase, preparation, and use of soybeans or soybean products. 
(5) DEPARTMENT.—The term "Department" means the Depart-
ment of Agriculture. 
(6) FIRST PURCHASER.—The term "first purchaser" means— 
(A) except as provided in subparagraph (B), any person 
buying or otherwise acquiring from a producer soybeans 
produced by such producer; or 
(B) the Commodity Credit Corporation, in any case in 
which soybeans are pledged as collateral for a loan issued 
under any price support loan program administered by the 
Commodity Credit Corporation. 
(7) INDUSTRY INFORMATION.—The term "industry informa-
tion" means information and programs that will lead to the 
development of new markets, new marketing strategies, or 
increased efficiency for the soybean industry, and activities to 
enhance the image of the soybean industry. 
(8) MARKETING.—The term "marketing" means the sale or 
other disposition of soybeans or soybean products in any chan-
nel of commerce. 
(9) NET MARKET PRICE.—The term "net market price" 
means— 
(A) except as provided in subparagraph (B), the sales price 
or other value received by a producer for soybeans after 
adjustments for any premium or discount based on grading 
or quality factors, as determined by the Secretary; or 
(B) for soybeans pledged as collateral for a loan issued 
under any price support loan program administered by the 
Commodity Credit Corporation, the principal amount of the 
loan. 
(10) ORDER.—The term "order" means an order issued under 
section 1968. 
(11) PERSON.—The term "person" means any individual, 
group of individuals, partnership, corporation, association, 
cooperative, or any other legal entity. 
(12) PRODUCER.—The term "producer" means any person 
engaged in the growing of soybeans in the United States who 
owns, or who shares the ownership and risk of loss of, such 
soybeans. 
(13) PROMOTION.—The term "promotion" means any action, 
including paid advertising, technical assistance, and trade serv-
icing activities, to enhance the image or desirability of soybeans 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3883 
or soybean products in domestic and foreign markets, and any 
activity designed to communicate to consumers, importers, proc-
essors, wholesalers, retailers, government officials, or others 
information relating to the positive attributes of soybeans or 
soybean products or the benefits of importation, use, or distribu-
tion of soybeans and soybean products. 
(14) QuAUFiED STATE SOYBEAN BOARD.—The term "qualified 
State soybean board" means a State soybean promotion entity 
that is authorized by State law. If no such entity exists in a 
State, the term "qualified State soybean board" means a soy-
bean producer-governed entity— 
(A) that is organized and operating within a State; 
(B) that receives voluntary contributions and conducts 
soybean promotion, research, consumer information, or 
industry information programs; and 
(C) that meets criteria established by the Board as ap-
proved by the Secretary relating to the qualifications of 
such entity to perform duties under the order and is recog-
nized by the Board as the soybean promotion and research 
entity within the State. 
(15) RESEARCH.—The term "research" means any type of 
study to advance the image, desirability, marketability, produc-
tion, product development, quality, or functional or nutritional 
value of soybeans or soybean products, including any research 
activity designed to identify and analyze barriers to export sales 
of soybeans and soybean products. 
(16) SECRETARY.—The term "Secretary" means the Secretary 
of Agriculture. 
(17) SOYBEAN PRODUCTS.—The term "soybean products" means 
products produced in whole or in part from soybeans or soybean 
by-products. 
(18) SOYBEANS.—The term "soybeans" means all varieties of 
Glycine max or Glycine soya. 
(19) STATE.—The terms "State" and "United States" consist of 
the 50 States of the United States of America, the District of 
Columbia, and the Commonwealth of Puerto Rico. 
SEC. 1968. ISSUANCE AND AMENDMENT OF ORDERS. 
7 USC 6303. 
(a) IN GENERAL.—To effectuate the declared policy of section 
1966Cb), the Secretary, subject to the procedures provided in subsec-
tion (b), shall issue orders under this subtitle applicable to producers 
and first purchasers of soybeans. Any such order shall be national in 
scope, and not more than one order shall be in effect under this 
subtitle at any one time. 
(b) PROCEDURE.— 
(1) PROPOSAL OR REQUEST FOR ISSUANCE.—The Secretary may 
propose the issuance of an order under this subtitle, or an 
association of soybean producers or any other person that would 
be affected by an order issued pursuant to this subtitle may 
request the issuance of, and submit a proposal for, such an 
order. 
(2) NOTICE AND COMMENT CONCERNING PROPOSED ORDER.—Not 
later than 30 days after the receipt of a request and proposal for 
an order pursuant to paragraph (1), or whenever the Secretary 
determines to propose an order, the Secretary shall publish a 
proposed order and give due notice and opportunity for public 
comment on the proposed order. 
104 STAT. 3884 
PUBLIC LAW 101-624—NOV. 28, 1990 
(3) ISSUANCE OF ORDER.—After notice and opportunity for 
public comment are given as provided in paragraph (2), the 
Secretary shall issue an order, taking into consideration the 
comments received and including in the order provisions nec-
essary to ensure that the order is in conformity with the 
requirements under this subtitle. Such order shall be issued and 
become effective not later than 180 days following publication of 
the proposed order. 
(c) AMENDMENTS.—The Secretary, from time to time, may amend 
any order issued under this section. The provisions of this subtitle 
applicable to orders shall be applicable to amendments to orders. 
7 u s e 6304. 
SEC. 1969. REQUIRED TERMS IN ORDERS. 
(a) IN GENERAL.—Any order issued under this subtitle shall con-
tain the terms and conditions specified in this section. 
O
t
>
) ESTABLISHMENT AND MEMBERSHIP OF THE UNITED SOYBEAN 
BOARD.— 
(1) IN GENERAL.—The order shall provide for the establish-
ment of, and appointment of members to, a United Soybean 
Board to administer the order. Members of the Board shall be 
soybean producers appointed by the Secretary, on a geographic 
basis, from State or combined units, as provided in this subsec-
tion. The cumulative number of seats on the Board shall be the 
total number of seats to which all the units are entitled. 
(2) SEATS.—The Secretary shall establish State units and 
combined units and seats on the Board for such units, as follows: 
(A) STATE UNITS.—Except as provided in subparagraph 
(B), each State shall be considered as a unit. 
(B) COMBINED UNITS.—A State in which average annual 
soybean production is less than 3,000,000 bushels shall be 
grouped with other States into a combined unit. To the 
extent practicable, each State with average annual soybean 
production of less than 3,000,000 bushels shall be grouped 
with other States with average annual soybean production 
of less than 3,000,000 bushels into a combined unit, in a 
manner prescribed in the order, and each combined unit 
shall consist of geographically contiguous States. To the 
extent practicable, each combined unit shall have an aver-
age annual production of soybeans of at least 3,000,000 
bushels. 
(C) NUMBER OF SEATS PER UNIT.—Subject to subparagraph 
(F), each unit, as established under subparagraph (A) or 
(B)-
(i) if its average annual soybean production is less 
than 15,000,000 bushels, shall be entitled to one seat on 
the Board; 
(ii) if its average annual soybean production is 
15,000,000 bushels or more but less than 70,000,000 
bushels, shall be entitled to 2 seats on the Board; 
(iii) if its average annual soybean production is 
70,000,000 bushels or more but less than 200,000,000 
bushels, shall be entitled to 3 seats on the Board; and 
(iv) if its average annual soybean production is 
200,000,000 bushels or more, shall be entitled to 4 seats 
on the Board. 
(D) 
DETERMINATION 
OF AVERAGE 
ANNUAL 
SOYBEAN 
PRODUCTION.—For purposes of subparagraphs (A), (B), (C), 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3885 
and (F), the Secretary shall determine average annual soy-
bean production applicable to a crop year by using the 
average of the 5 previous crops of soybeans, excluding the 
crop in which production was the highest and the crop in 
which production was the lowest. 
(E) REAPPORTIONMENT OF SEATS.—At the end of each 3 
year period beginning with the 3 year period starting on the 
effective date of the order, the Secretary, if necessary, shall 
adjust any unit to conform with subparagraphs (A) and (B). 
If the Secretary makes such an adjustment, the Secretary 
shall reapportion the seats on the Board to conform with 
subparagraph (C) and any modifications made under 
subparagraph (F). If pa3anent of refunds following the ini-
tial referendum conducted under section 1970(a) is au-
thorized by producers, in making such adjustments, the 
Secretary shall exclude, from each State's annual soybean 
production, those bushels of soybeans on which such re-
funds are paid. 
(F) ADJUSTMENT OF LEVEUS OF PRODUCTION.—At the end of 
each 3 year period beginning with the 3 year period starting 
on the effective date of the order, the Board may 
recommend to the Secretary, to the extent it determines 
appropriate, changes in the levels of production used 
in subparagraphs (A), (B), and (C) to determine per-unit 
representation on the Board. The Secretary may amend the 
order to make such changes in levels of production used to 
determine per-unit representation. Any such amendment to 
the order shall not be subject to a referendum of producers. A 
unit may not, as a result of any modification under this 
subparagraph, lose Board seats to which it is entitled at the 
time the order is initially issued unless its average annual 
production, as determined under subparagraph (D), declines 
below the levels required for representation, as specified in 
subparagraphs (A), (B), and (C). 
(3) NOMINATIONS.— 
(A) IN GENERAL.—The Secretary shall appoint soybean 
producers to seats established under paragraph (2) from 
nominations submitted by each unit. Each unit shall submit 
to the Secretary at least two nominations for each appoint-
ment to the Board to which the unit is entitled, as deter-
mined under paragraph (2), 
(B) METHOD FOR OBTAINING NOMINATIONS.— 
(i) INITIALLY-ESTABUSHED BOARD.— 
(I) STATE UNITS.—The Secretary shall solicit 
nominations for each seat on the initially-estab-
lished Board to which a State unit is entitled from 
the State soybean board in the State that submits 
satisfactory evidence to the Secretary that such 
board meets the criteria of subparagraph (A) or (B) 
of section 1967(14). If no such organization exists in 
the unit, the Secretary shall solicit nominations for 
appointments in such manner as the Secretary 
determines appropriate. 
(II) COMBINED UNITS.—The Secretary shall solicit 
nominations for each seat on the initially-estab-
lished Board to which a combined unit is entitled 
in such manner as the Secretary determines appro-
104 STAT. 3886 
PUBLIC LAW 101-624—NOV. 28, 1990 
priate, taking into consideration the recommenda-
tions of any State soybean board operating in the 
unit that submits to the Secretary satisfactory evi-
dence that such board meets the criteria described 
in subparagraph (A) or (B) of section 1967(14). 
(ii) SUBSEQUENT APPOINTMENT.— 
(I) STATE UNITS.—Nominations for each subse-
quent appointment to a seat on the Board to which 
a State unit is entitled shall be made by the quali-
fied State soybean board in the unit. If no such 
organization exists in the unit, the Secretary shall 
solicit nominations for such appointment in such 
manner as the Secretary determines appropriate. 
(II) COMBINED UNITS.—The Secretary shall solicit 
nominations for each subsequent appointment to 
the Board to which a combined unit is entitled in 
such manner as the Secretary determines appro-
priate, taking into consideration the recommenda-
tions of any qualified 
State 
soybean 
board 
operating in the unit. 
(iii) REJECTION.—The Secretary may reject any 
nomination submitted by a unit under this paragraph. 
If there are insufficient nominations from which to 
appoint members to the Board as a result of the Sec-
retary rejecting the nominations submitted by a unit, 
the unit shall submit additional nominations, as pro-
vided in this paragraph. 
(4) TERMS.—Each appointment to the Board shall be for a 
term of 3 years, except that appointments to the initially-estab-
lished Board shall be proportionately for 1-year, 2-year, and 3-
year terms. No person may serve more than three consecutive 3-
year terms. 
(5) COMPENSATION.—Board members shall serve without com-
pensation, but shall be reimbursed for their reasonable ex-
penses incurred in performing their duties as members of the 
Board. 
(6) TEMPORARY APPOINTMENTS.— 
(A) 
APPOINTMENT.—Notwithstanding 
paragraphs 
(1) 
through (5), the Secretary, under procedures established by 
the i^retary, shall appoint to the initially-established 
Board up to three temporary members to serve in addition 
to the members appointed as otherwise provided in this 
subsection, as the Secretary determines appropriate for 
transition purposes under the criteria set out in subpara-
graph (B). Each such temporary member shall be appointed 
for a single term not to exceed 3 years. 
(B) REPRESENTATION OF CERTAIN STATES.—The Secretary 
shall make temporary appointments to the initially-estab-
lished Board to ensure, to the extent practicable, that each 
State with a State soybean board that, prior to the date of 
enactment of this Act, was contributing State soybean pro-
motion and research assessment funds to national soybean 
promotion and research efforts has representation on the 
initially-established Board that reflects the relative con-
tributions of such State to the national soybean promotion 
and research effort. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3887 
(7) MEETINGS.—The order shall provide for at least one meet-
ing of the Board annually and specify the circumstances under 
which additional special meetings of the Board may be held. 
(c) POWERS AND DUTIES OF THE BOARD.—The order shall define the 
powers and duties of the Board and shall include the power and 
d u t y -
C
D to administer the order in accordance with the terms and 
provisions of the order; 
(2) to make regulations to effectuate the terms and provisions 
of the order; 
(3) if the Board exercises its authority to establish the 
Committee described in subsection (g)— 
(A) to elect members of the Board to serve on the Commit-
tee; and 
(B) if the Board assigns to the Committee the power to 
develop and submit budgets as provided for in subsection 
(hXD, to approve, modify, or reject budgets submitted by the 
Committee; 
(4) to submit budgets to the Secretary for the approval or 
disapproval of the Secretary; 
(5) to contract with appropriate persons to implement plans or 
projects; 
(6) to contract with qualified State soybean boards to imple-
ment programs in their States; 
(7) to receive, investigate, and report to the Secretary com-
plaints of violations of the order; 
(8) to recommend to the Secretary amendments to the order; 
(9) to provide the Secretary with prior notice of meetings of 
the Board and meetings of committees of the Board to permit 
the Secretary, or a designated representative, to attend such 
meetings; and 
(10) to provide not less than annually a report to producers 
accounting for funds and describing programs implemented, 
and such reports shall be made available to the pubUc on 
request. 
(d) BOARD VOTING PROCEDURES.— 
(1) IN GENERAL.—The order shall establish procedures for the 
conduct of voting by the Board, as provided in this subsection. 
On or after the end of the 3-year period beginning on the 
effective date of the order, the Board may recommend to the 
Secretary changes in the voting procedures of the Board and the 
Secretary may amend the order to make such changes. Such 
changes shall not be subject to a referendum of producers. 
(2) NUMBER OF VOTES PER MEMBER.—Each member of the 
Board shall be entitled, in any vote conducted by the Board, to 
cast the number of votes determined under the following rules: 
(A) IN GENERAL.—Each member shall be entitled to cast 
one vote unless a roll call vote is conducted. On a roll call 
vote, each member shall be entitled to cast such additional 
votes as are assigned to the member under subparagraph 
(B). 
(B) ADDITIONAL VOTES.—The additional votes that each 
member is assigned for roll call votes shall be computed as 
follows: 
(i) ASSESSMENT LEVEL.—Except as provided in clause 
(ii), each unit shall be allotted one vote for each per-
cent, or portion of a percent, of the total amount of 
Reports. 
Public 
information. 
104 STAT. 3888 
PUBLIC LAW 101-624—NOV. 28, 1990 
assessments remitted to the Board that was remitted 
from the unit (net of any refunds made under subsec-
tion (1)(2)), on the average, during each of the 3 previous 
fiscal years of the Board. 
(ii) FIRST THREE FISCAL YEARS.— 
(I) FIRST FISCAL YEAR.—During the first fiscal 
year of the Board, each unit shall be allotted one 
vote for each percent, or portion of a percent, of the 
total production of soybeans in the United States 
that was produced in the unit, on the average, 
during each of the 3 immediately preceding crop 
years. 
(II) SECOND AND THIRD FISCAL YEARS.—The order 
shall provide appropriate adjustments of the proce-
dure for the allotment of votes under clause (i) to 
apply to allotments of votes during the second and 
third fiscal years of the Board. 
(iii) DIVISION OF VOTES WITHIN UNITS.—A unit's total 
votes under clause (i) or (ii) shall be divided equally 
among all the members present and voting represent-
ing that unit. The procedures established by the order 
shall provide for the equitable disposition of fractional 
votes assigned to a member under such division of a 
unit's vote. 
(3) MOTIONS.— 
(A) IN GENERAL.—Except as provided in subparagraph (B), 
a motion shall carry if approved by a simple majority of 
members of the Board casting votes. 
(B) ROLL CALL VOTES.—Any member of the Board may call 
for a roll call vote on any motion. Except as otherwise 
provided in the bylaws adopted by the Board, whenever a 
roll call vote is conducted, the motion shall carry only if it 
is approved by a simple majority of all votes cast and a 
simple majority of all units voting (with the vote of each 
unit determined by a simple majority of all votes cast by 
members in that unit). 
(4) COMMITTEE VOTES.—In any vote conducted by a committee 
of the Board, each member of the committee shall have one 
vote. 
(5) PROXIES.—A member may not cast votes by proxy. 
(e) BUDGETS.— 
(1) IN GENERAL.—The order shall provide that the Board shall 
develop budgets on a fiscal year basis of anticipated expenses 
and disbursements under the order, including probable costs of 
administration and promotion, research, consumer information, 
and industry information projects. The Board shall submit such 
budgets or any substantial modification thereof to the Secretary 
for the Secretary's approval. 
(2) LIMITATION.—No expenditure of funds may be made by the 
Board unless such expenditure is authorized under a budget or 
modification approved by the Secretary. 
(f) PLANS AND PROJECTS.—The order shall provide that the Board 
shall review or, on its own initiative, develop plans or projects of 
promotion, research, consumer information, and industry informa-
tion, to be paid for with funds received by the Board. Such plans or 
projects shall not become effective until approved by the Secretary. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3889 
(g) SOYBEAN PROGRAM COORDINATING CoMMirrEE.— 
(1) EsTABUSHMENT.—The Order may authorize the Board to 
establish a Soybean Program Coordinating Committee to Eissist 
in the administration of the order, as provided in this 
subsection. 
(2) MEMBERSHIP.— 
(A) COMPOSITION.—The Committee shall be composed of 
members such that— 
(i) not less than two-thirds of the Committee shall be 
members of the Board, including— 
(I) the Chairperson and Treasurer of the Board; 
and 
(II) additional members of the Board elected by 
the Board; and 
(ii) not more than one-third of the Committee shall be 
producers elected by the national, nonprofit soybean 
producer-governed organization that conducts activities 
on behalf of State soybean boards and that, on the date 
of the enactment of this Act, conducts activities to 
promote soybeans and soybean products as a cooperator 
with 
the Foreign 
Argicultural 
Service 
of the 
Department, 
(B) CERTIFICATION.—To serve on the Committee, each 
producer elected by the national, nonprofit 
soybean 
producer-governed organization shall be certified by the 
Secretary as a producer who is duly elected by such organiza-
tion as a representative to the Committee. 
(3) TERMS.—Terms of appointment to the Committee shall be 
for 1 year. No person may serve on the Committee for more 
than 6 consecutive terms. 
(4) COMPENSATION.—Committee members shall serve without 
compensation, but shall be reimbursed for their reasonable 
expenses incurred in performing duties for the Committee. 
(5) CHAIRPERSON.—The Chairperson of the Board shall serve 
as Chairperson of the Committee. 
(6) QUORUM.—A quorurii of the Committee shall consist of the 
number of members of the Committee equal to three-fourths of 
the total membership of the Committee. 
(h) POWERS AND DUTIES OF THE COMMITTEE.—The order shall 
define the powers and duties that the Board may assign to the 
Committee, which may include the following: 
(1) BUDGETS.—The Board may assign to the Committee the 
power to develop and submit to the Board, for approval, budgets 
on a fiscal year basis, as provided for in subsection (e). The 
Board shall review and approve, reject, modify, or substitute a 
budget proposed by the Committee, and submit budgets to the 
Secretary for the Secretary's approval under subsection (e). 
(2) PLANS AND PROJECTS.—The Board may assign to the 
Committee the power to review, or on its own initiative develop, 
plans or projects for promotion, research, consumer informa-
tion, and industry information activities, to be paid for with 
funds received by the Board as provided for in subsection (f). 
Each such plan or project shall be presented to the Board for 
approval. 
(3) VOTING.—A recommendation to be presented to the Board 
relating to proposed budgets or proposed plans and projects 
shall require the concurring vote of at least two-thirds of the 
members present at a meeting of the Committee. 
104 STAT. 3890 
PUBLIC LAW 101-624—NOV. 28, 1990 
(i) ADMINISTRATION.— 
(1) EXPENSES.—The order shall provide that the Board shall 
be responsible for all expenses of the Board. 
(2) STAFF.— 
(A) IN GENERAL.—The order shall provide that the Board 
may establish an administrative staff or facilities of its own 
or contract for the use of the staff and facilities of national, 
nonprofit, producer-governed organizations that represent 
producers of soybeans. 
(B) LIMITATION ON SALARIES.—If the Board establishes an 
administrative staff of its own, the Board is authorized to 
expend for administrative staff salaries and benefits an 
amount not to exceed one percent of the projected level of 
assessments to be collected by the Board, net of any refunds 
to be made under subsection (1)(2), for that fiscal year. 
(C) REIMBURSEMENT OF ORGANIZATION.—If the staff of 
national, nonprofit, producer-governed organizations that 
represent producers of soybeans are used by the Board, the 
staff of such organizations shall not receive compensation 
directly from the Board, but such organizations shall be 
reimbursed for the resisonable expenses of their staffs, 
including salaries, incurred in performing staff duties on 
behalf of, and authorized by, the Board. 
(3) LIMITATION ON ADMINISTRATIVE COSTS.—The order shall 
provide that costs incurred by the Board in administering the 
order (including the cost of staff but not including administra-
tive costs incurred by the Secretary) during any fiscal year shall 
not exceed 5 percent of the projected level of assessments to be 
collected by the Board, net of any refunds to be made under 
subsection (1X2), for that fiscal year. 
0) CONTRACTS AND AGREEMENTS.— 
(1) AUTHORITY.—To ensure coordination and efficient use of 
funds, the order shall provide that the Board may enter into 
contracts or agreements for the implementation and carrying 
out of the activities authorized by this subtitle with national, 
nonprofit, 
producer-governed 
organizations that 
represent 
producers of soybeans, and for the payment thereof with funds 
received by the Board under the order. 
(2) COORDINATION.—To enhance coordination, the Board, 
when entering into contracts or agreements for the implementa-
tion and carrjdng out of activities authorized by this subtitle, 
shall ensure that all plans or projects implemented for 
consumer information, industry information, promotion, or re-
search are each implemented by a single entity. There shall not 
be in force, at any one time, more than one contract or agree-
ment for implementation of plans or projects for consumer 
information, for industry information, for promotion, or for 
research, except that, upon approval of the Secretary, the Board 
may contract with qualified State soybean boards to implement 
plans or projects within their respective States. 
(3) TERMS.—Any contract or agreement entered into under 
this subsection shall provide that— 
(A) the contracting party shall develop and submit to the 
Board a plan or project together with a budget or budgets 
that shall show estimated costs to be incurred for such plan 
or project; 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3891 
(B) the plan or project shall not become effective until it 
has been approved by the Secretary; and 
(C) the contracting party shall keep accurate records of Records. 
all of its transactions, account for funds received and ex- Reports. 
pended, including staff time, salaries, and expenses ex-
pended on behalf of Board activities, make periodic reports 
to the Board of activities conducted, and make such other 
reports as the Board or the Secretary may require. 
(4) COMMUNICATIONS TO PRODUCERS.—The order may provide 
that— 
(A) the Board may enter into contracts or agreements 
with qualified State soybean boards that apply therefor and 
'• 
agree to the terms thereof, for the implementation of plans 
or projects to coordinate and facilitate communications to 
producers regarding the conduct of activities under the 
order and for the pa5nnent of the costs of the plans or 
projects with funds received by the Board under the order; 
and 
(B) to facilitate the funding of plans or projects described 
in subparagraph (A), if the order does not authorize the 
payment of refunds, the Board shall allocate for such fund-
ing each year an amount not less than the cumulative 
amount of all producer contributions to qualified State 
soybean boards during the previous year that the State 
boards were unable to retain, and forwarded to the Board, 
because producers received refunds on such State contribu-
tions, as determined by the Board based on information 
submitted by the qualified State soybean boards. 
(5) APPORTIONMENT OF FUNDS TO QUAUFIED STATE SOYBEAN 
BOARDS.— 
(A) IN GENERAL.—In using the funds allocated each year 
under paragraph (4XB) for payment of the costs of contracts 
or agreements described in paragraph (4XA), subject to 
subparagraph (B), the Board shall apportion such allocated 
funds among States so that each qualified State soybean 
board receives an amount equal to the amount of such 
allocated funds attributable to refunds in the State during 
the previous year, as determined by the Board based on 
information submitted by the qualified State soybean 
boards. 
(B) EXCEPTION.—The Board shall not be required to 
apportion funds to a qualified State soybean board, as 
provided in subparagraph (A), i
f
— 
(i) the qualified State soybean board has not entered 
into a contract or agreement with the Board for the 
implementation of plans or projects described in para-
graph (4XA); or 
(ii) the amount to be apportioned to the qualified 
State soybean board is less than the cost to the Board of 
overseeing the use of such apportionment during the 
year involved, and the contract or agreement shall so 
provide, 
(k) BOOKS AND RECORDS OF THE BOARD.—The order shall require 
the Board to— 
(1) maintain such books and records, which shall be available 
to the Secretary for inspection and audit, as the Secretary may 
prescribe; 
104 STAT. 3892 
PUBLIC LAW 101-624—NOV. 28, 1990 
Reports. 
(2) prepare and submit to the Secretary, from time to time, 
such reports as the Secretary may prescribe; and 
(3) account for the receipt and disbursement of all funds 
entrusted to the Board. 
Reports. 
The Board shall cause its books and records to be audited by an 
Public 
independent auditor at the end of each fiscal year and a report of 
information. 
such audit to be submitted to the Secretary. The Secretary shall 
make such report available to the public upon request. 
(1) ASSESSMENTS.— 
(1) IN GENERAL.— 
(A) FIRST PURCHASERS.— 
(i) COLLECTION.—The order shall provide that each 
first purchaser of soybeans from a producer shall col-
lect, in the manner prescribed by the order, an assess-
ment from the producer and remit the assessment to 
the Board. The Board shall use qualified State soybean 
boards to collect such assessments in States in which 
such boards operate. 
(ii) RATE.—The rate of assessment prescribed by the 
order shall be one-half of 1 percent of the net market 
price of soybeans sold by the producer to the first 
purchaser. 
(iii) ONE ASSESSMENT.—No more than one assessment 
shall be made on any soybeans. 
(B) DIRECT PROCESSING.—The order shall provide that any 
person processing soybeans of that person's own production 
and marketing such soybeans or soybean products made 
from such soybeans shall remit to the Board or the qualified 
State soybean board, in the manner prescribed by the order, 
an assessment established at a rate equivalent to the rate 
provided for in subparagraph (A)(ii). 
(2) REFUNDS.— 
(A) REFUNDS PRIOR TO INITIAL REFERENDUM.— 
(i) IN GENERAL.—The order shall provide that, during 
the period prior to the approval of the continuation of 
the initial order in the referendum provided for in 
section 1970(a), as determined by the Secretary, each 
producer shall have the right to demand and receive 
from the Board a refund of any assessment collected 
from such producer i
f
—
-
(I) such producer is responsible for paying the 
assessment; and 
(II) such producer does not support the programs, 
projects, or activities implemented under the 
order. 
(ii) BY BOARD.—During the period referred to in 
clause (i), refunds shall be provided equally from the 
Board and, where applicable, the qualified State soy-
bean board, as determined by the Secretary. 
(B) ADMINISTRATION.—Subject to subparagraph (C)(i), any 
demand by a producer for a refund of an assessment under 
this paragraph shall be made in accordance with regula-
tions, on a form, and within the time period (not to exceed 
90 days) prescribed by the Board. 
(C) SUBMISSION OF REFUND DEMANDS.— 
(i) IN GENERAL.—In each State in which a qualified 
State soybean board collects assessments, as provided 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3893 
in paragraph (IXAXi), producers shall submit demands 
for refunds of assessments to the qualified State soy-
bean board. Such board shall provide notice to produc-
ers, in a manner prescribed by the Board, of their right 
to such refunds, and shall process such submissions 
under procedures established by State law applicable to 
refunds of assessments on soybeans, except that if no 
refunds are allowed under State law, such submissions 
shall be processed under procedures established under 
this paragraph. 
(ii) N o QUALIFIED STATE SOYBEAN BOARD.—In each 
State in which there is no qualified State soybean 
board, producers shall submit demands for refunds of 
assessments directly to the Board. 
(D) TIME LIMIT FOR MAKING REFUND.—Subject to subpara-
graph (CXi), each refund to a producer of an assessment 
under this paragraph shall be made as soon as practicable, 
but in no event more than 60 days, after submission of proof 
satisfactory to the qualified State soybean board or the 
Board that the producer paid the assessment for which 
refund is demanded. 
(E) ORDER NOT FAVORED.—If the Secretary determines 
that producers do not favor the continuation of the order in 
the referendum provided for in section 1970(a), refunds 
shall be made under this paragraph on collected assess-
ments until such collections are terminated, as provided in 
section 1970(a). 
(F) REFUNDS AFTER THE INITIAL REFERENDUM.— 
(i) IN GENERAL.—The order shall contain provisions 
relating to refunds after the approval of the order in 
the initial referendum under section 1970(a) as re-
quired in this subparagraph. 
(ii) AVAILABILITY.—Effective for the period beginning 
on the date the Secretary determines the result of the 
initial referendum under section 1970(a) and ending on 
a date (not later than 18 months thereafter) established 
by the Secretary, the qualified State soybean board 
and, where no qualified State soybean board exists, the 
Board shall make refunds available to soybean produc-
ers at the end of the fiscal year from escrowed funds, as 
provided for in clause (vii). Such refunds shall be made 
available, under the procedures specified in subpara-
graphs (A) through (D) to the extent not inconsistent 
with this subparagraph, to producers who have 
requested refunds during such period. 
(iii) POLL.—Not later than the end of the period 
provided for in clause (ii), the Secretary shall conduct a 
poll of soybean producers, using the procedures pro-
vided for in section 1970(bX3), to determine if producers 
support the conduct of a referendum on the continu-
ance of the pa3anent of refunds under the order. 
(iv) REFERENDUM.—If the Secretary determines, 
based on the poll conducted under clause (iii), that the 
conduct of a referendum is supported by at least 20 
percent of the producers (not in excess of one-fifth of 
which may be producers in any one State) who, during 
a representative period, have been engaged in the 
104 STAT. 3894 
PUBLIC LAW 101-624—NOV. 28, 1990 
production of soybesins, the Secretary shall conduct a 
referendum among all such producers for the purpose 
of determining whether such producers favor the 
continuation of the payment of refunds under the 
order. Such referendum shall be conducted, under the 
procedures provided for in section 1970, not later than 
1 year after the Secretary determines, based on the 
poll, that the referendum is required. 
(v) CONTINUED REFUNDS.—If the Secretary conducts a 
referendum under clause (iv), the qualified State soy-
bean board and, where no qualided State soybean 
board exists, the Board shall continue to make refunds 
available to producers as provided for in clause (ii) 
during the period prior to the conduct of the referen-
dum, which shall be payable at the end of the period 
from the escrowed funds, as provided in clause (vii). 
(vi) CONTINUATION OR CESSATION OF REFUNDS.—If the 
Secretary determines, in the referendum conducted 
under clause (iv), that continuation of the pajnnent of 
refunds is favored by a majority of the producers voting 
in such referendum, the qualified State soybean board 
and, where no qualified State soybean board exists, the 
Board shall continue to make refunds available to 
producers as provided for in clause (ii) for each 1-year 
period that follows until such time as soybean produc-
ers approve an amendment to the order to eliminate 
such refunds. Such refunds shall be payable at the end 
of each such 1-year period from escrowed funds, as 
provided in clause (vii). If the Secretary determines in 
the referendum that continuation of such refunds is 
not favored by a majority of producers voting in the 
referendum, the right to such refunds shall cease 
immediately. 
(vii) ESCROW ACCOUNTS.— 
(I) EsTABUSHMENT.—The qualified State soybean 
board gmd, for producers in States where no quali-
fied State soybean board exists, the Board shall 
establish escrow accounts to be used to pay refunds 
under clause (ii) and, if necessary, clauses (v) and 
(vi). 
(II) SEPARATE ACCOUNTS.—The qualified State 
soybean board and, where no qualified State soy-
bean board exists, the Board shall establish sepa-
rate escrow accounts for each State from which 
producer assessments are collected for the purpose 
of making refunds under clauses (ii), (v), and (vi), 
respectively. 
(III) DEPOSITS.—The qualified State soybean 
board and, where no qualified State soybean board 
exists, the Board shall deposit into its escrow ac-
count for refunds under clause (ii), (v), or (vi), as 
appropriate, 10 percent of the total assessment 
collected by the qualified State soybean board and, 
where no qualified State soybean board exists, the 
Board (including the assessment provided under 
paragraph (2) and contributions by producers to 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3895 
qualified State soybean boards under paragraph 
(4)), during the time period involved. 
(IV) 
REFUNDS MADE FROM ESCROW ACCOUNT.— 
Refunds requested by producers from a State 
under clause (ii) (or if refunds are available under 
clause (v) or (vi)) during the time period involved 
shall be made from the escrow account that is 
applicable to that clause for such State. 
(V) PRORATION.—If the funds deposited in a State 
account established under subclause (I) for pur-
poses described under clauses (ii), (v), and (vi) are 
not sufficient to honor all requests for refunds 
made by producers from that State during the time 
period involved, the qualified State soybean board 
and, where no qualified State soybean board exists, 
the Board shall prorate the amount of such refunds 
from the State's account among all producers from 
that State that requests refunds. 
(VI) SURPLUS FUNDS.—Any funds not refunded to 
producers in a State under this clause shall be 
divided equally between the Board and the quali-
fied State soybean board of such State. Such funds 
shall be used to carry out programs under this 
subtitle. 
(VII) REFUND PERIOD.—In appl3dng this clause to 
refunds under clause (vi), each annual refund 
period shall be treated separately. 
(3) USE.—The Eissessments (net of any refunds under para-
graph (2)) shall be used for— 
(A) payment of the expenses incurred in implementation 
and administration of the order; 
(B) the establishment of a reasonable reserve; and 
(C) reimbursement to the Secretary of administrative 
costs incurred by the Secretary to implement and admin-
ister the order, other than one-half of the cost incurred for 
the referendum conducted under paragraph (2XF). 
(4) CREDIT FOR CONTRIBUTIONS TO QUALIFIED STATE SOYBEAN 
BOARDS.—A producer who can establish that such producer is 
contributing to a qualified State soybean board shall receive 
credit, in determining the assessment due to the Board from 
such producer, for contributions to the qualified State soybean 
board of up to one-quarter of 1 percent of the net market price 
of soybeans or the equivalent thereof. For purposes of this 
subtitle, there shall be only one qualified State soybean board in 
each State. A producer may receive a credit under this para-
graph only if the contribution is to the qualified State soybean 
board in the State in which the soybeans are produced, except 
that the Board, with the approval of the Secretary, may au-
thorize exceptions to such State-of-origin rule as are appropriate 
to ensure effective coordination of collection procedures among 
States. 
(5) SINGLE PROCESS OF ASSESSMENT.—The procedures in the 
order for the collection of assessments shall ensure, to the 
extent practicable, that such soybeans are subject to a single 
process of assessment under the order. 
(m) CREDIT FOR CERTAIN COSTS TO STATES.—The order shall provide 
that the Board may provide a credit to each qualified State soybean 
104 STAT. 3896 
PUBLIC LAW 101-624—NOV. 28, 1990 
board of an amount not to exceed one-half of any fees paid to State 
governmental agencies or first purchasers for collection of the 
assessments if the pajrment of such fees by the qualified State 
soybean board is required by State law enacted prior to the date of 
enactment of this Act, except that the Board may not provide a 
credit to any qualified State soybean board of an amount that 
exceeds 2.5 percent of the amount of assessments collected and 
remitted to the Board under subsection (1). 
(n) MINIMUM LEVEL OF ASSESSMENTS TO STATES.— 
(1) PRE-REFERENDUM PERIOD.—The order shall contain provi-
sions to ensure that, during the period prior to the conduct of 
the referendum provided for in section 1970(a), each qualified 
State soybean board receives annually an amount of funds 
equal to the average amount that the State board collected from 
assessments during each of the State board's fiscal years 1984 
through 1988 (excluding the year in which such collections were 
the highest and the year in which such collections were the 
lowest), as determined by the Secretary and subject to para-
graph (3). 
(2) POST-REFERENDUM PERIOD.—The order shall provide, effec-
tive after the conduct of the referendum provided for in section 
1970(a), subject to paragraph (3), that the Board annually shall 
provide a credit to each qualified State soybean board of an 
amount by which— 
(A) the amount equal to 1 cent times the average number 
of bushels of soybeans produced in the State during each of 
the preceding 5 years (excluding the year in which the 
production is the highest and the year in which the produc-
tion is the lowest); exceeds 
(B) the total amount collected by the qualified State 
soybean board from assessments on producers minus the 
amount of assessments remitted to the Board during such 
year under subsection (1). 
(3) LIMITATION.—The total amount of credits under paragraph 
(1) or (2) and Eissessments retained by the qualified State soy-
bean board for a year may not exceed the total amount of 
assessments collected in that State under subsection (1) (net of 
any refunds made under parsigraph (2) of subsection (1)) in that 
year. 
(o) INVESTMENT OF FUNDS.— 
(1) IN GENERAL.—The order shall provide that the Board, with 
the approval of the Secretary, may invest assessment funds 
collected by the Board under the order, pending their disburse-
ment, only in— 
(A) obligations of the United States or any agency 
thereof; 
(B) general obligations of any State or any political sub-
division thereof; 
(C) any interest-bearing account or certificate of deposit 
of a bank that is a member of the Federal Reserve System; 
or 
(D) obligations fully guaranteed as to principal and 
interest by the United States. 
(2) INCOME.—Income from any such investment may be used 
for any purpose for which the invested funds may be used. 
(p) PROHIBITION ON USE OF FUNDS TO INFLUENCE GOVERNMENTAL 
ACTION.— 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3897 
(1) IN GENERAL.—Except as otherwise provided in paragraph 
(2), the order shall prohibit any funds collected by the Board 
under the order from being used in any manner for the purpose 
of influencing legislation or governmental action or policy. 
(2) EXCEPTIONS.—Pareigraph (1) shall not apply to— 
(A) the development and recommendation of amendments 
to the order; 
(B) the communication to appropriate 
government 
of^cials of information relating to the conduct, imple-
mentation, or results of promotion, research, consumer 
information, or industry information activities under the 
order; or 
(C) any action designed to market soybeans or soybean 
products directly to a foreign government or political sub-
division thereof. 
(q) BOOKS AND RECORDS OF FIRST PURCHASERS AND CERTAIN 
PRODUCERS.— 
(1) RECORDKEEPING.— 
(A) IN GENERAL.—The order shall require that each first 
purchaser of soybeans and any person processing soybeans 
of that person's own production maintain and make avail-
able for inspection by the Board or the Secretary such books 
and records as may be required by the order and file reports 
at the time, in the manner, and having the content pre-
scribed by the order. The order shall exempt small produc-
ers processing soybeans of their own production from such 
recordkeeping and reporting requirements if they are not 
required to pay assessments under the order. 
(B) DEFINITION OF SMALL PRODUCER.—The order shall 
define the term "small producer" as such term is used in 
subparagraph (A). 
(2) USE OF INFORMATION.— 
(A) IN GENERAL.—Information maintained under para-
graph (1) shall be made available to the Secretary as is 
appropriate for the administration or enforcement of this 
subtitle, or any order or regulation issued under this sub-
title. 
(B) OTHER INFORMATION.—The Secretary shall authorize 
the use under this subtitle of information regarding first 
purchasers that is accumulated under a law or regulation 
other than this subtitle or regulations under this subtitle. 
(3) CONFIDENTIALITY.— 
(A) IN GENERAL.—Except as otherwise provided in this 
subtitle, commercial or financial information that is ob-
tained under paragraph (1) or (2) and that is privileged or 
confidential shall be kept confidential by all officers and 
employees of the Department, members of the Board, and 
agents of the Board. 
(B) PERMITTED USES.—Information obtained under the 
authority of this subtitle shall be made available to any 
agency or officer of the Federal Government for— 
(i) the implementation of this subtitle; 
(ii) any investigatory or enforcement action nec-
essary for the implementation of this subtitle; or 
(iii) any civil or criminal law enforcement activity if 
the activity is authorized by law. 
104 STAT. 3898 
PUBLIC LAW 101-624—NOV. 28, 1990 
(C) OTHER EXCEPTIONS.—Nothing in subparagraph (A) 
may be deemed to prohibit— 
(i) the issuance of general statements, based on the 
reports, of the number of persons subject to an order or 
statistical data collected therefrom, which statements 
do not identify the information furnished by any 
person; or 
(ii) the publication, by direction of the Secretary, of 
the name of any person violating any order, together 
with a statement of the particular provisions of the 
order violated by such person. 
(4) PENALTY.—Any person who willfully violates the provi-
sions of this subsection, upon conviction, shall be subject to a 
fine of not more than $1,000, or to imprisonment for not more 
than one year, or both, and if a member or an agent of the 
Board; or an officer or employee of the Department, shall be 
removed from office. 
(r) INCIDENTAL TERMS AND CONDITIONS.—The order shall provide 
terms and conditions, not inconsistent with the provisions of this 
subtitle, as necessary to effectuate the provisions of the order, 
including provisions for the assessment of a penalty for each late 
pa3mient of assessments under subsection (1). 
7 use 6305. 
SEC. 1970. REFERENDA. 
(a) INITIAL REFERENDUM.— 
(1) REQUIREMENT.—Not earlier than 18 months or later than 
36 months following issuance of an order under section 1968, the 
Secretary shall conduct a referendum among producers who, 
during a representative period as determined by the Secretary, 
have been engaged in the production of soybeans for the pur-
pose of ascertaining whether the order then in effect shall be 
continued. 
(2) ADVANCE NOTICE.—The Secretary shall, to the extent prac-
ticable, provide broad public notice in advance of any referen-
dum. Any such notice shall be provided without advertising 
expenses by means of newspapers, county newsletters, the elec-
tronic media, and press releases, through the use of notices 
posted in State and county Extension Service offices and county 
Agricultural Stabilization and Conservation Service offices, and 
by other appropriate means specified in the order. Such notice 
shall include information on when the referendum will be held, 
registration and voting requirements, rules regarding absentee 
voting, and other pertinent facts. 
(3) APPROVAL OF ORDER.—Such order shall be continued only if 
the Secretary determines that the order has been approved by 
not less than a majority of the producers voting in the 
referendum. 
(4) DISAPPROVAL OF ORDER.—If continuation of the order is not 
approved by a majority of those voting in the referendum, the 
Secretary shall terminate collection of assessments under the 
order within 6 months after the referendum and shall termi-
nate the order in an orderly manner as soon as practicable. 
(b) ADDITIONAL REFERENDA.— 
(1) IN GENERAL.— 
(A) REQUIREMENT.—After the initial referendum on an 
order, the Secretary shall conduct additional referenda, as 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3899 
described in subparagraph (C), if requested by a representa-
tive group of producers, as described in subparagraph (B). 
(B) REPRESENTATIVE GROUP OF PRODUCERS.—An additional 
referendum on an order shall be conducted if requested by 
10 percent or more of the producers who during a rep-
resentative period have been engaged in the production of 
soybeans, of which group of requesting producers not in 
excess of one-fifth may be producers in any one State, as 
determined by the Secretary. 
(C) EuGiBLE PRODUCERS.—Each additional referendum 
sh£ill be conducted among all producers who, during a 
representative period, as determined by the Secretary, have 
been engaged in the production of soybeans to determine 
whether such producers favor the termination or suspen-
sion of the order. 
(2) DISAPPROVAL OF ORDER.—If the Secretary determines, in 
any referendum conducted under paragraph (1), that suspension 
or termination of the order is favored by a majority of the 
producers voting in the referendum, the Secretary shall suspend 
or terminate, as appropriate, collection of assessments under 
the order within 6 months after such determination and shall 
suspend or terminate the order, as appropriate, in an orderly 
manner as soon as practicable after such determination. 
(3) OPPORTUNITY TO REQUEST ADDITIONAL REFERENDA.— 
(A) IN GENERAL.—To facilitate the periodic determination 
as to whether producers favor the conduct of an additional 
referendum under this subsection, the Secretary, 5 years 
after the conduct of a referendum under this Act and every 
5 years thereafter, shall provide soybean producers an 
opportunity to request an additional referendum, as pro-
vided in this paragraph. 
(B) METHOD OF MAKING REQUEST.— 
(i) IN-PERSON REQUESTS.—To carry out subparagraph 
(A), the Secretary shall establish a procedure under 
,.-
which producers may request a reconfirmation referen-
dum in person at county extension offices or county 
Agricultural Stabilization and Conservation Service of-
fices during a period established by the Secretary, or as 
provided in clause (ii). 
(ii) MAIL-IN REQUESTS.—In lieu of making such re-
quests in person, producers may make requests by 
mail. Mail-in requests shall be postmarked no later 
than the end of the period established under clause (i) 
for in-person requests. To facilitate such submission of 
requests by mail, the Secretary may make mail-in re-
quest forms available to producers. 
(C) NOTIFICATIONS.—The Secretary shall publish a notice Federal 
in the Federal Register, and the Board shall provide written Register, 
notification to producers, not later than 60 days prior to the publication. 
end of the period established under subparagraph (B)(i) for 
in-person requests, of the producers' opportunity to request 
the additional referendum. Such notifications shall explain 
the producers' rights to, and the procedure specified in this 
subsection for, the conduct of an additional referendum, the 
purpose of the referendum, and the date and method by 
which producers may act to request the additional 
referenda under this paragraph. The Secretary shall take 
39-194 O - 91 - 19 : QL 3 Part 5 
104 STAT. 3900 
PUBLIC LAW 101-624—NOV. 28, 1990 
such other actions as the Secretary determines are nec-
essary to ensure that producers are made aware of the 
opportunity to request an additional referendum on the 
order. 
(D) ACTION BY SECRETARY.—As soon as practicable follow-
ing the submission of requests for a reconsideration referen-
dum, the Secretary shall determine whether a sufficient 
number of producers have requested an additional referen-
dum, and take other steps to conduct an additional referen-
dum, £is are required under paragraph (1). 
(E) TIME UMIT.—Any additional referendum requested 
under the procedures provided in this paragraph shall be 
conducted not later than 1 year after the Secretary deter-
mines that a representative group of producers, as de-
scribed in paragraph (IXB), have requested the conduct of 
such referendum. 
(c) PROCEDURES.— 
(1) REIMBURSEMENT OF SECRETARY.—The Secretary shall be 
reimbursed from assessments collected by the Board for any 
expenses incurred by the Secretary in connection with the 
conduct of any activity required under this section, except for 
the salaries of Government employees associated with the con-
duct of a referendum under subsections (a) and (b). 
(2) DATE.—Each referendum shall be conducted for a reason-
able period of time not to exceed 3 days, established by the 
Secretary, under a procedure whereby producers intending to 
vote in the referendum shall certify that they were engaged in 
the production of soybeans during the representative period 
and, at the same time, shall be provided an opportunity to vote 
in the referendum. 
(3) PLACE.—Referenda shall be conducted at county extension 
offices and provision shall be made for absentee mail ballots to 
be provided on request. Absentee mail ballots shall be furnished 
by the Secretary on request made in person, by mail, or by 
telephone. 
7 use 6306. 
SEC. 1971. PETITION AND REVIEW. 
(a) PETITION.— 
(1) IN GENERAL.—A person subject to an order issued under 
this subtitle may file with the Secretary a petition— 
(A) stating that the order, any provision of the order, or 
any obligation imposed in connection with the order is not 
established in accordance with law; and 
(B) requesting a modification of the order or an exemp-
tion from the order. 
(2) HEARINGS.—The petitioner shall be given the opportunity 
for a hearing on a petition filed under paragraph (1), in accord-
ance with regulations issued by the Secretary. 
(3) RULING.—After a hearing under paragraph (2), the Sec-
retary shall make a ruling on the petition that is the subject of 
the hearing, which shall be final if such ruling is in accordance 
with applicable law. 
O
b
) REVIEW.— 
(1) COMMENCEMENT OF ACTION.—The district court of the 
United States in any district in which the person who is a 
petitioner under subsection (a) resides or carries on business 
shall have jurisdiction to review a ruling on the petition of such 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3901 
person under such subsection, if a complaint for that purpose is 
filed not later than 20 days after the date of the entry of a 
ruling by the Secretary under such subsection (a). 
(2) PROCESS.—Service of process in a proceeding under para-
graph (1) shall be conducted in accordance with the Federal 
Rules of Civil Procedure. 
(3) REMANDS.—If the court determines, under parsigraph (1), 
that a ruling issued under subsection (a)(3) is not in accordance 
with applicable law, the court shall remand the matter to the 
Secretary with directions either— 
(A) to make such ruling as the court shall determine to be 
in accordance with law; or 
(B) to take such further proceedings as, in the opinion of 
the court, the law requires. 
(4) ENFORCEMENT.—The pendency of proceedings instituted 
under subsection (a) shall not impede, hinder, or delay the 
Attorney General or the Secretary from taking any action 
under section 1972. 
SEC. 1972. ENFORCEMENT. 
7 USC 6307. 
(a) JURISDICTION.—The district courts of the United States are 
vested with jurisdiction specifically to enforce, and to prevent and 
restrain any person from violating, any order or regulation made or 
issued under this subtitle. 
(b) REFERRAL TO ATTORNEY GENERAL.—A civil action authorized to 
be commenced under this section shall be referred to the Attorney 
General for appropriate action, except that the Secretary shall not 
be required to refer to the Attorney General a violation of this 
subtitle, if the Secretary believes that the administration and 
enforcement of this subtitle would be adequately served by provid-
ing a suitable written notice or warning to the person who commit-
ted such violation or by administrative action under section 1971. 
(c) CIVIL PENALTIES AND ORDERS.— 
(1) CIVIL PENALTIES.—Any person who willfully violates any 
provision of any order or regulation issued by the Secretary 
under this subtitle, or who fails or refuses to pay, collect, or 
remit any assessment or fee duly required of the person under 
the order or regulations, may be assessed— 
(A) a civil penalty by the Secretary of not more than 
$1,000 for each such violation; and 
(B) in the case of a willful failure to pay, collect, or remit 
an assessment as required by the order or regulation, an 
additional penalty equal to the amount of such assessment. 
Each violation shall be a separate offense. 
(2) CEASE-AND-DESIST ORDERS.—In addition to, or in lieu of, a 
civil penalty under paragraph (1), the Secretary may issue an 
order requiring a person to cease and desist from continuing 
any such violation. 
(3) NOTICE AND HEARING.—No penalty shall be assessed or 
cease-and-desist order issued by the Secretary under this subsec-
tion unless the person against whom the penalty is assessed or 
the order is issued is given notice and opportunity for a hearing 
before the Secretary with respect to such violation. 
(4) FINALITY.—The order of the Secretary assessing a penalty 
or imposing a cease-and-desist order under this subsection shall 
be final and conclusive unless the affected person files an 
104 STAT. 3902 
PUBLIC LAW 101-624—NOV. 28, 1990 
appeal of the Secretary's order with the appropriate district 
court of the United States in accordance with subsection (d). 
(d) REVIEW BY DISTRICT COURT.— 
(1) COMMENCEMENT OF ACTION.—Any person who has been 
determined to be in violation of this subtitle, or against whom a 
civil penalty has been assessed or a cease-and-desist order issued 
under subsection (c), may obtain review of the penalty or order 
by— 
(A) filing, within the 30-day period beginning on the date 
the penalty is assessed or order issued, a notice of appeal 
in— 
(i) the district court of the United States for the 
district in which the person resides or conducts busi-
ness; or 
(ii) the United States District Court for the District of 
Columbia; and 
(B) simultaneously sending a copy of the notice by cer-
tified mail to the Secretary. 
(2) RECORD.—The Secretary shall file promptly in the appro-
priate court referred to in parsigraph (1), a certified copy of the 
record on which the Secretary has determined that the person 
had committed a violation. 
(3) STANDARD OF REVIEW.—A finding of the Secretary under 
this section shall be set aside only if such finding is found to be 
unsupported by substantial evidence. 
(e) FAILURE TO OBEY ORDERS.—Any person who fails to obey a 
cease-and-desist order issued under this section after such order has 
become final and unappealable, or after the appropriate United 
States district court has entered a final judgment in favor of the 
Secretary, shall be subject to a civil penalty assessed by the Sec-
retary, after opportunity for a hearing and for judicial review under 
the procedures specified in subsections (c) and (d), of not more than 
$5,000 for each offense. Each day during which such failure contin-
ues shall be considered as a separate violation of such order. 
(f) FAILURE TO PAY PENALTIES.—If any person fails to pay an 
assessment of a civil penalty under this section after it has become a 
final and unappealable order, or after the appropriate United States 
district court has entered final judgment in favor of the Secretary, 
the Secretary shall refer the matter to the Attorney General for 
recovery of the amount assessed in the district court in which the 
person resides or conducts business. In such action, the validity and 
appropriateness of the final order imposing the civil penalty shall 
not be subject to review. 
(g) ADDITIONAL REMEDIES.—The remedies provided in this subtitle 
shall be in addition to, and not exclusive of, other remedies that may 
be available. 
7 use 6308. 
SEC. 1973. INVESTIGATIONS AND POWER TO SUBPOENA. 
(a) INVESTIGATIONS.—The Secretary may make such investigations 
as the Secretary considers necessary— 
(1) for the effective administration of this subtitle; and 
(2) to determine whether any person has engaged or is engag-
ing in any act that constitutes a violation of this subtitle, or any 
order, rule, or regulation issued under this subtitle. 
0)) SUBPOENAS, OATHS, AND AFFIRMATIONS.— 
(1) IN GENERAL.—For the purpose of an investigation under 
subsection (a), the Secretary may administer oaths and affirma-
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3903 
tions, and issue a subpoena to require the production of any 
records that are relevant to the inquiry. The production of any 
such records may be required from any place in the United 
States. 
(2) 
ADMINISTRATIVE 
HEARINGS.—For 
the 
purpose 
of 
an 
administrative hearing held under section 1971 or 1972, the 
presiding officer is authorized to administer oaths and affirma-
tions, subpoena witnesses, compel their attendance, take evi-
dence, and require the production of any records that are 
relevant to the inquiry. Such attendance of witnesses and the 
production of any such records may be required from any place 
in the United States. 
(c) AID OF COURTS.—In the case of contumacy by, or refusal to obey 
a subpoena issued to, any person, the Secretary may invoke the aid 
of any court of the United States within the jurisdiction of which 
such investigation or proceeding is carried on, or where such person 
resides or carries on business, in order to enforce a subpoena issued 
by the Secretary under subsection (b). The court may issue an order 
requiring such person to comply with such a subpoena. 
(d) CONTEMPT.—Any failure to obey an order of the court under 
this section may be punished by such court as a contempt thereof. 
(e) PROCESS.—Process in any such case may be served in the 
judicial district in which such person resides or conducts business or 
wherever such person may be found. 
(f) HEARING SITE.—The site of any hearings held under section 
1971 or 1972 shall be within the judicial district where such person 
resides or has a principal place of business. 
SEC. 1974. ADMINISTRATIVE PROVISIONS. 
7 USC 6309. 
(a) CONSTRUCTION.—Except as provided in subsection (b), nothing 
in this subtitle may be construed to— 
(1) preempt or supersede any other program relating to soy-
bean promotion, research, consumer information, or industry 
information organized and operated under the laws of the 
United States or any State; or 
(2) authorize the withholding of any information 
from 
Congress. 
(b) STATE LAWS,— 
(1) REFERENDA ON QUALIFIED STATE SOYBEAN BOARDS.—To 
ensure the proper administration of this subtitle, no State may 
conduct a referendum relating to the continuation or termi-
nation of a qualified State soybean board or State soybean 
assessment— 
(A) during the period beginning on the date an order is 
issued under section 1968 and ending 18 months after the 
referendum on such order is conducted under section 
1970(a); or 
(B) if such order is approved under the referendum con-
ducted under section 1970(a) by a majority of producers 
voting in such State, such State law shall be suspended for 
an additional 36 months. 
(2) EXCEPTION.—Paragraph (1) shall not be construed to apply 
to— 
(A) a State referendum concerning the approval of modi-
fications to a State soybean promotion program that does 
not involve termination of the qualified State soybean 
board or State soybean assessment; and 
104 STAT. 3904 
PUBLIC LAW 101-624—NOV. 28, 1990 
(B) any State referendum regarding a State soybean pro-
motion program that is originated by soybean producers. 
(3) 
ASSESSMENTS COLLECTED BY QUALIFIED STATE SOYBEAN 
BOARDS.—To ensure adequate funding of the operations of quali-
fied State soybean boards under this subtitle, whenever an 
order is in effect under this subtitle, no State law or regulation 
that limits the rate of assessment that the qualified State 
soybean board in that State may collect from producers on 
soybeans produced in such State, or that has the effect of 
limiting such rate, may be applied to prohibit such State board 
from collecting, and expending for authorized purposes, assess-
ments from producers of up to the full amount of the credit 
authorized for producer contributions to qualified State soybean 
boards under section 1969(kX4). 
(b) AMENDMENTS TO ORDERS.^The provisions of this subtitle 
applicable to orders shall be applicable to amendments to orders. 
7 u s e 6310. 
SEC. 1975. SUSPENSION OR TERMINATION OF ORDERS. 
The Secretary shall, whenever the Secretary finds that the order 
or any provision of the order obstructs or does not tend to effectuate 
the declared policy of this subtitle, terminate or suspend the oper-
ation of such order or provision. The termination or suspension of 
any order, or any provision thereof, shall not be considered an order 
within the meaning of this subtitle. 
7 u s e 6311. 
SEC. 1976. AUTHORIZATION OF APPROPRIATIONS; REGULATIONS. 
(a) IN GENERAL.—There are authorized to be appropriated for each 
fiscal year such funds as are necessary to carry out this subtitle. 
OJ) ADMINISTRATIVE EXPENSES.—Funds appropriated under subsec-
tion (a) shall not be available for payment of the expenses or 
expenditures of the Board or the Committee in administering any 
provision of any order issued under this subtitle. 
(c) REGULATIONS.—The Secretary may issue such regulations as 
are necessary to carry out this subtitle, including regulations relat-
ing to the assessment of late payment charges. 
Honey Research, 
Promotion, and 
Consumer 
Information Act 
Amendments of 
1990. 
7 u s e 4601 note. 
Subtitle F—Honey and Wool 
CHAPTER 1—HONEY 
SEC. 1981. SHORT TITLE. 
This chapter may be cited as the "Honey Research, Promotion, 
and Consumer Information Act Amendments of 1990". 
SEC. 1982. DEFINITIONS. 
Section 3 of the Honey Research, Promotion, and Consumer 
Information Act (7 U.S.C. 4602) is amended— 
(1) in paragraph (8)— 
(A) by striking "or who acts" and inserting "or acts"; and 
(B) by inserting before the period at the end the following: 
"and who is listed in the import records as the importer of 
record for such honey or honey products"; and 
(2) by adding at the end the following new paragraph: 
"(18) The term 'exporter' means any person who exports 
honey or honey products from the United States.". 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3905 
SEC. 1983. REQUIRED TERMS IN ORDERS. 
Section 7 of the Honey Research, Promotion, and Consumer 
Information Act (7 U.S.C. 4606) is amended— 
(1) in subsection (c)— 
(A) by striking out subparagraph (C) of paragraph (2) and 
inserting the following new paragraph: 
"(C) two members who are either importers or exporters, of 
which at legist one shall be an importer, appointed from nomina-
tions submitted by the Committee from recommendations by 
industry organizations representing importer and exporter 
interests;"; 
(B) in the matter following paragraph (2)(E), by striking 
"nominate an alternate or alternates" and inserting 
"submit nominations for an alternate"; 
(C) at the end of paragraph (2), by adding the following 
sentence: "However, no producer-packer who, during any 
three of the preceding five years, purchased for resale more 
honey than such producer-packer produced shall be eligible 
for nomination or appointment to the Honey Board as a 
producer described in subparagraph (A) or as an alternate 
to such producer."; and 
(D) in paragraph (4), inserting before the period at the 
end the following: ", except that if, as a result of the 
adjustment of the boundaries of the regions established 
under paragraph (2)(A), a producer member or alternate is 
no longer from the region from which such person was 
appointed, such member or alternate may serve out the 
term for which such person was appointed"; and 
(2) by adding at the end the following new subsection: 
"(k) Any patent on any product, copyright on any material, or any Inventions and 
invention, product formulation or publication developed through the patents. 
use of funds collected by the Honey Board shall be the property of ^^Py^^snt. 
the Honey Board. The funds generated from any such patent, 
copyright, invention, product formulation, or publication shall inure 
to the benefit of the Honey Board.". 
SEC. 1984. ASSESSMENTS. 
(a) ASSESSMENT RATE AND EXEMPTIONS.—Section 7 of the Honey 
Research, Promotion, and Consumer Information Act (7 U.S.C. 4606) 
is further amended— 
(1) in subsection (eXD by striking the second and third sen-
tences and inserting the following: "The gissessment rate shall 
be $0.01 per pound, with payment to be made in the manner 
described in section 9."; and 
(2) by striking paragraph (2) of subsection (e) and inserting the 
following new paragraph: 
"(2)(A) Honey that is consumed at home by the producer or 
importer or donated by the producer or importer to a nonprofit, 
government, or other entity, as determined appropriate by the 
Secretary, rather than sold shall be exempt from assessment under 
the order, except that donated honey that later is sold in a commer-
cial outlet by a donee or a donee's assignee shall be subject to 
assessment on such sale. 
"(BXi) A producer, producer-packer, or importer who produces or 
imports during any year less than 6,000 pounds of honey shall be 
eligible for an exemption in such year from paying an assessment on 
104 STAT. 3906 
PUBLIC LAW 101-624—NOV. 28, 1990 
honey such person distributes directly through local retail outlets, 
as determined by the Secretary, during such year. 
"(ii) In order to claim an exemption under this subparagraph, a 
person shall submit an application to the Honey Board stating the 
basis on which the person claims the exemption for such year. 
Reports. 
"(hi) If, after a person claims an exemption from assessments for 
any year under this subparagraph, such person no longer meets the 
requirements of this subparagraph for an exemption, such person 
shall file a report with the Honey Board in the form and manner 
prescribed by the Board and pay an assessment on or before March 
15 of the subsequent year on all honey produced or imported by such 
person during the year for which the person claimed the exemption, 
"(3) If a producer, producer-packer, or importer does not pay any 
assessments under this Act due to the applicability to such person of 
the exemptions from assessments provided in paragraph (2), then 
such producer, producer-packer, or importer shall not be considered 
a producer or importer for purposes of voting in any referendum 
conducted under this Act during the period the person's exemption 
from all assessments is in effect.". 
(b) COLLECTION OF ASSESSMENTS; REFUNDS.—Section 9 of the Honey 
Research, Promotion, and Consumer Information Act (7 U.S.C. 4608) 
is amended— 
(1) in subsection (a), by striking "and (e)" and inserting "(e), 
and (i)"; 
(2) in subsection (d) to read as follows: 
Loan programs. 
"(d) In any casc in which a loan, or a loan deficiency payment is 
made with respect to honey under the honey price support loan 
program established under the Agricultural Act of 1949, or succes-
sor statute, the Secretary shall provide for the assessment to be 
deducted from the disbursement of any loan funds or from the loan 
deficiency payment made to the producer and for the amount of 
such £issessment to be forwarded to the Honey Board. The Secretary 
shall provide for the producer to receive a statement of the amount 
of the assessment deducted from the loan funds or loan deficiency 
pa3anent promptly after each occasion when an assessment is 
deducted from any such loan funds or payment under this 
subsection."; 
(3) in subsection (f), by inserting after "assessments" the 
following: ", and persons receiving an exemption from assess-
ments under section 7(e)(2),"; 
(4) in subsection (h)— 
(A) by striking "Any" and inserting "(1)(A) Except as 
otherwise provided in paragraph (2), any"; 
(B) by striking "to importers" and inserting 
"an 
importer"; 
(C) by striking "from importers" and inserting "from 
such importer"; and 
(D) by adding at the end the following: 
Loan programs. 
"(B) A producer that has obtained a honey price support loan 
under the Agricultural Act of 1949, or successor statute, may obtain 
a refund if the producer has submitted to the Honey Board the 
statement received under subsection (d) of the amount of assessment 
deducted from the loan funds and has otherwise complied with this 
subsection, even though the loan with respect to which the assess-
ment was collected may still be outstanding and final settlement has 
not been made. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3907 
"(2) With respect to the order in effect on the date of the enact-
ment of this paragraph, following the referendum on such order 
required under section 13(bX2), a producer or importer may obtain a 
refund of an assessment under such order as provided in paragraph 
(1) only if the Secretary determines that the proposal to terminate 
refund under the order is defeated in such referendum."; and 
(5) by inserting after subsection (h) the following new 
subsection: 
"(i) If a first handler or the Secretary fails to collect an assessment 
from a producer under this section, the producer shall be respon-
sible for the pajonent of the assessment to the Honey Board.". 
SEC. 1985. FIRST RECONFIRMATION REFERENDUM. 
(a) IN GENERAL.—Section 13(b) of the Honey Research, Promotion, 
and Consumer Information Act (7 U.S.C. 4612) is amended— 
(1) by striking "Five" and inserting "(1) Except as otherwise 
provided in paragraph (2), five"; 
(2) by striking "continuation, termination," and inserting 
"termination"; and 
(3) by adding at the end the following new paragraph: 
"(2XA) In lieu of the first referendum otherwise required to be 
conducted under paragraph (1) for the order in effect on the date of 
the enactment of this paragraph, the Secretary shall conduct a 
referendum to determine if honey producers and importers favor— 
"(i) the continuation of the order; and 
"(ii) termination of the authority for producers and importers 
to obtain a refund of assessments under section 9(h)(1). 
The referendum shall be conducted at the time the first referendum 
otherwise required under paragraph (1) would have been conducted, 
except for the operation of this paragraph. 
"(BXi) The Secretary shall terminate such order at the end of the 
marketing year during which such referendum is conducted, if the 
Secretary determines that termination of the order is approved or 
favored by not less than a majority of the producers and importers 
voting in the referendum and that the producers and importers 
comprising this majority produce £ind import more than 50 percent 
of the volume of honey produced and imported by those voting in the 
referendum. 
"(ii) If the Secretary determines that termination of the authority 
for producers and importers to receive refunds of assessments under 
section 9(hXl) is favored or approved by a majority of the producers 
and importers voting in such referendum and that the producers 
and importers comprising this majority produce and import more 
than 50 percent of the volume of honey produced and imported by 
those voting in the referendum, then the Secretary shsdl amend 
such order as necessary to reflect the vote of producers and import-
ers. Such amendment to the order shall become effective on the date 
it is issued, but in no case more than 180 days after the conduct of 
such referendum.". 
(b) CONFORMING AMENDMENT.—Section 13(d) of the Honey Re-
search, Promotion, and C!onsumer Information Act (7 U.S.C. 4612) is 
amended— 
(1) by striking "such order" and inserting "an order"; 
(2) by inserting "in which a referendum is conducted under 
subsection (b) or (c)" after "marketing year"; and 
(3) by striking "of the order". 
104 STAT. 3908 
PUBLIC LAW 101-624—NOV. 28, 1990 
7 u s e 4610a. 
Effective date. 
Federal 
Register, 
publication. 
7 u s e 4603. 
SEC. 1986. INVESTIGATIONS AND POWER TO SUBPOENA. 
The Honey Research, Promotion, and Consumer Information Act 
is amended by inserting after section 11 (7 U.S.C. 4610) the following 
new section: 
"SEC. 11 A. INVESTIGATIONS AND POWER TO SUBPOENA. 
"(a) IN GENERAL.—The Secretary may make such investigations as 
the Secretary determines necessary— 
"(1) for the effective administration of this Act; or 
"(2) to determine whether a person has engaged or is engag-
ing in any act or practice that constitutes a violation of any 
provision of this Act, or of any order, rule, or regulation issued 
under this Act. 
"(b) POWER TO SUBPOENA.— 
"(1) INVESTIGATIONS.—For the purpose of an investigation 
made under subsection (a), the Secretary is authorized to admin-
ister oaths and affirmations and to issue a subpoena to require 
the production of any records that are relevant to the inquiry. 
The production of any such records may be required from any 
place in the United States. 
"(2) 
ADMINISTRATIVE HEARINGS.—For the 
purpose of em 
administrative hearing held under section 10 or section 11, the 
presiding officer is authorized to administer oaths gmd £iffirma-
tions, subpoena witnesses, compel their attendance, take evi-
dence, and require the production of any records that are 
relevant to the inquiry. Such attendance of witnesses and the 
production of any such records may be required from any place 
in the United States. 
"(c) AID OF (DOURTS.—In case of contumacy by, or refusal to obey a 
subpoena issued to, any person, the Secretary may invoke the aid of 
any court of the United States within the jurisdiction of which such 
investigation or proceeding is carried on, or where such person 
resides or carries on business, in order to enforce a subpoena issued 
by the Secretary under subsection (b). The court may issue an order 
requiring such person to comply with such a subpoena. 
"(d) CONTEMPT.—Any failure to obey such order of the court may 
be punished by such court as a contempt thereof. 
"(e) PROCESS.—Process in any such case may be served in the 
judicial district in which such person resides or conducts business or 
wherever such person may be found. 
"(f) HEARING SITE.—The site of any hearings held under section 10 
or 11 shall be within the judicial district where such person resides 
or has a principal place of business.". 
SEC. 1987. CONFORMING AMENDMENT TO ORDER. 
Notwithstanding any provision of the Honey Research, Pro-
motion, and Consumer Information Act (7 U.S.C. 4601 et seq.), the 
Secretary of Agriculture, after notice and opportunity for public 
comment, shall issue an amendment to the order in effect under 
such Act on the date of the enactment of this Act to conform such 
order to the amendments made by this subtitle, which shall become 
effective on the date of the publication of such amendment to the 
order in the Federal Register without a referendum thereon (except 
for the referendum specifically provided for under section 1985). The 
Secretary shall issue such amendment to the order in final form not 
later than 150 days after the date of the enactment of this Act. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3909 
CHAPTER 2—WOOL 
SEC. 1989. PROMOTION PROGRAM. 
Section 708 of the National Wool Act of 1954 (7 U.S.C. 1787) is 
amended by striking "at least two-thirds" wherever it appears and 
inserting 
a majority" and by striking "two-thirds" wherever it 
appears and inserting "a majority". 
Subtitle G—Cotton 
Cotton Research 
and Promotion 
Act 
Amendments of 
1990. 
This subtitle may be cited as the "Cotton Research and Promotion ^ USC 2101 note. 
Act Amendments of 1990". 
SEC. 1990. SHORT TITLE. 
SEC. 1991. FINDINGS AND DECLARATION OF POLICY. 
Section 2 of the Cotton Research and Promotion Act (7 U.S.C. 
2101) is amended by— 
(1) in the second sentence inserting "and also outside the 
United States" before the period; 
(2) in the third sentence by striking "in large part"; 
(3) striking the fourth and the sixth sentences of the first 
paragraph; 
(4) striking "The great inroads on the market and uses for 
United States" and inserting "The great inroads on the market 
and uses for"; and 
(5) in the third paragraph— 
(A) striking "harvested" and inserting "marketed"; and 
(B) inserting "and on imports of cotton" after "United 
States" the first time it appears. 
SEC. 1992. REQUIRED TERMS IN ORDER; COTTON IMPORTS. 
Section 7 of the Cotton Research and Promotion Act (7 U.S.C. 
2106) is amended— 
(1) in subsection (aX2) by— 
(A) striking "handler" and inserting "person"; and 
(B) striking "producer"; 
(2) in subsection (b), in the first sentence, by— 
(A) inserting "(1)" after "shall be composed of"; and 
(B) striking the colon and all that follows through the end 
of the sentence and inserting the following: ", and (2) when 
imports of cotton are subject to an order, an appropriate 
number of representatives, as determined by the Secretary, 
of importers of cotton on which assessments are paid under 
this Act. Such importer representatives shall be appointed 
by the Secretary after consultation with organizations rep-
resenting importers, as determined by the Secretary. Each 
cotton-producing State shall be entitled to at least one 
representative on the Cotton Board."; 
(3) by amending subsection (e) to read as follows: 
"(eXD Providing that— 
"(A) the producer or other person for whom the cotton is 
being handled shall pay to the handler of such cotton designated 
by the Cotton Board pursuant to regulations issued under the 
order; 
"(B) such handler shall collect from the producer or other 
person for whom the cotton, including cotton owned by the 
104 STAT. 3910 
PUBLIC LAW 101-624—NOV. 28, 1990 
heindler, is being handled, and shall pay to the Cotton Board; 
and 
"(C) each importer shall pay to the Cotton Board on imports 
of cotton, 
an assessment prescribed by the order, on the basis of bales of cotton 
handled or imported. The assessment shall cover such expenses and 
expenditures, including provision for a reasonable reserve, as the 
Secretary finds are reasonable and likely to be incurred by the 
Cotton Board under the order, during any period specified by the 
Secretary. 
"(2) The order shall provide for reimbursing the Secretary— 
"(A) for expenses not to exceed $300,000 incurred by the 
Secretary in connection with any referendum conducted under 
section 8; and 
"(B) for administrative costs incurred by the Secretary for 
supervisory work up to 5 employee years after an order or 
amendment to an order has been issued and made effective. 
There shall also be included in the order a provision for reimbursing 
any agency of the Federal Government that assists in administering 
the import provisions of the order for a resisonable amount of the 
expenses incurred by that agency in connection therewith. 
"(3) To facilitate the collection and pa)nnent of such assessments, 
the Cotton Board may designate different handlers or importers or 
classes of handlers or importers to recognize differences in market-
ing practices or procedures utilized in any State or area, except that 
no more than one such assessment shall be made on any bale of 
cotton, unless specifically authorized by provisions of this subsec-
tion. 
"(4) The rate of assessment prescribed by the order shall be $1 per 
bale of cotton handled, supplemented by an additional per bale 
amount not to exceed 1 percent of the value of cotton as determined 
by the Cotton Board and the Secretary. The rate of assessment on 
imports of cotton shall be determined in the same manner as the 
rate of assessment per bale of cotton handled, and the value to be 
placed on cotton imports for the purpose of determining the assess-
ment on such imports shall be established by the Secretary in a fair 
and equitable manner. The Secretary shall establish procedures to 
ensure that the upland cotton content of imported products is not 
subject to more than one assessment under this title. 
"(5) No authority under this Act may be used as a basis to 
advertise or solicit votes in any referendum relating to the rate of 
assessment with funds collected under this Act. 
"(6) The Secretary may maintain a suit against any person subject 
to the order for the collection of such sissessment, and the several 
district courts of the United States are hereby vested with jurisdic-
tion to entertain such suits regardless of the amount in controversy. 
The remedies provided in this section shall be in addition to, and not 
exclusive of, the remedies provided for elsewhere in this Act or now 
or hereafter existing at law or in equity. 
"(7) The provisions of this subsection and subsection (b) shall not 
apply to cottonseed and the products derived from cottonseed 
whether domestically produced or imported. 
"(8) The provisions of this subsection relating to importers and 
assessments on imports of cotton shall be effective only if approved 
in a referendum as provided in section 80t>) or 8(c).". 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3911 
SEC. 1993. REQUIREMENTS FOR REFERENDA. 
Section 8 of the Cotton Research and Promotion Act (7 U.S.C. 7 USC 2107. 
2100) is amended by— 
(1) inserting "(a)" before "The Secretary"; and 
(2) adding at the end the following new subsections: 
"(bXl) Notwithstanding the provisions of sections 4 and 5, not Effective date. 
later than 150 days after the date of enactment of the Cotton 
Research and Promotion Act Amendments of 1990, and after notice 
and opportunity for public comment, the Secretary shall issue a 
proposed amendment to the order implementing the provisions of 
such Act, which shall become effective as provided in paragraph (2). 
"(2) Notwithstanding the provisions of subsection (a), the Sec-
retary shall, within a period not to exceed 8 months after the date of 
enactment of the Cotton Research and Promotion Act Amendments 
of 1990, conduct a referendum among persons who have been cotton 
producers during a representative period, as determined by the 
Secretary, and persons who are importers of cotton and who, during 
a 12-month period ending not later than 90 days prior to the conduct 
of the referendum under this section imported a quantity of cotton 
in excess of the de minimis quantity (if any) established by the 
Secretary under section 17C(2), for the purpose of ascertaining if a 
majority of those voting approve the proposed amendment to the 
order issued by the Secretary under paragraph (1). The Secretary 
shall announce the results of the referendum within 30 days after 
the date of such referendum. If the amendment is approved in the Regulations. 
referendum, within a period not to exceed 90 days from the date of 
announcement of the results of such referendum, the Secretary 
shall publish the amendment to the order and regulations 
implementing the amendment provided for in this subsection. 
"(c)(1) Notwithstanding the provisions of sections 4 and 5, once 
every five years after the date of the referendum provided for under 
subsection (b), the Secretary shall conduct a review to ascertain 
whether a referendum is needed to determine whether producers 
and importers favor continuation of the amendment to the order 
provided for in the Cotton Research and Promotion Act Amend-
ments of 1990 if such amendment is then in effect or, if such an 
amendment is not in effect, whether they favor approval of such 
amendment. The Secretary shall make a public announcement of 
the results of the review within 60 days after each fifth anniversary 
date of the referendum provided for under subsection (b). If the 
Secretary determines to provide for such a referendum, the Sec-
retary shall conduct the referendum within 12 months after a public 
announcement of the determination to conduct the referendum. 
"(2) If the Secretary does not provide for such a referendum on the 
Secretary's own initiative, the Secretary shall conduct such a ref-
erendum upon the request of 10 percent or more of the number of 
cotton producers and importers voting in the most recent referen-
dum, except that, in counting such requests for a referendum, not 
more than 20 percent of such requests may be from producers from 
any one State or importers of cotton. Producers and importers may 
sign up to request such a referendum at the county office of the 
Agricultural Stabilization and Conservation Service, or county 
extension agent, or by mailing such a request to the Secretary, as 
prescribed in regulations. The sign-up period shall be for a period 
not to exceed 90 days, shall commence 60 days after the Secretary 
makes a public announcement of a determination not to provide for 
Public 
information. 
Public 
information. 
104 STAT. 3912 
PUBLIC LAW 101-624—NOV. 28, 1990 
a referendum on the Secretary's own initiative, and shall be pub-
licized by the Secretary and the Cotton Board immediately after 
such public announcement. The referendum shall be held within 12 
months after the end of the sign-up period, if requested by the 
requisite number of persons. 
"(3) The amendment to the order provided for in this subsection 
shall not be effective if it is disapproved by a majority of cotton 
producers and importers of cotton voting in the referendum.". 
SEC. 1994. SUSPENSION AND TERMINATION OF ORDERS. 
Section 9(b) of the Cotton Research and Promotion Act (7 U.S.C. 
2108(b)) is amended to read as follows: 
"(b) The Secretary may conduct a referendum at any time, and 
shall hold a referendum on request of a number of producers and 
importers (if subject to the order) equivalent to at least 10 percent of 
those persons voting in the most recent referendum, to determine 
whether cotton producers and importers subject to the order favor 
the termination or suspension of the order, except that in counting 
such requests for a referendum, not more than 20 percent of such 
requests may be from producers from any one State or importers of 
cotton (if subject to the order). The Secretary shall suspend or 
terminate the order at the end of the marketing year, as defined in 
the order, whenever the Secretary determines suspension or termi-
nation of the order is approved by a majority of producers and 
importers (subject to the order) voting in the referendum who, 
during a representative period determined by the Secretary, have 
been engaged in the production and importation of cotton and who 
produced and imported more than 50 percent of the volume of cotton 
produced and imported by those voting in the referendum,". 
SEC. 1995. AMENDMENTS TO THE ORDER 
Section 10 of the Cotton Research and Promotion Act (7 U.S.C. 
2109) is amended to read as follows: 
"PROVISIONS APPLICABLE TO AMENDMENTS 
"SEC. 10. (a) Except as provided in subsection (b), the provisions of 
this Act applicable to orders shall be applicable to amendments to 
orders. 
"(b) No amendment to an order issued under this Act shall be 
effective unless the Secretary determines that— 
"(1) with respect to an amendment referred to in section 8(b) 
or (8Xc), the simendment is approved by producers and import-
ers of cotton as provided in such section; or 
"(2) with respect to any other amendment, that the amend-
ment is approved by a majority of cotton producers and 
importers subject to the order voting in the referendum. 
"(c) The disapproval of any amendment to an order issued under 
this Act shall not be deemed to invalidate such order.". 
SEC. 1996. PRODUCER REFUNDS. 
Section 11 of the Cotton Research and Promotion Act (7 U.S.C. 
2110) is amended by— 
(1) striking "Notwithstanding any other provision" and 
inserting "(a) Notwithstanding any other section and except as 
provided in subsection (b),"; and 
(2) adding at the end the following new subsection: 
'^itS''^***^ 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3913 
"G)) The right of a producer to demand a refund under subsection 
(a) shall terminate if the proposed amendment of the order im-
plementing the Cotton Research and Promotion Amendments Act of 
1990 is approved in the referendum provided for under section 8. 
Such right shall terminate 30 days after the date the Secretary 
announces the results of such referendum if such proposed amend-
ment is approved. Such right shall be reinstated if the amendment 
should be disapproved in any subsequent referendum.". 
SEC. 1997. DEFINITIONS. 
Section 17 of the Cotton Research and Promotion Act (7 U.S.C. 
2116) is amended— 
(1) in subsection (c)— 
(A) by inserting "(1)" after "means"; and 
(B) by striking "its seed." and inserting the following: "its 
seed and (2) imports of upland cotton including the upland 
cotton content of the products derived from upland cotton 
(other than industrial products as defined by the Secretary). 
The term 'cotton' shall not, however, include any entry of 
imported cotton by an importer that has a value or weight 
less than any de minimis figure as established in accord-
ance with regulations issued by the Secretary. Any de 
minimis figure as established under this paragraph shall be 
such as to minimize the burden in administering the assess-
ment provision but still provide for the maximum participa-
tion of imports of cotton in the assessment provisions of this 
Act."; 
(2) in subsection (d), by inserting after "cottonseed" the 
following: 
"or, for the purposes of sections 3, 6(c), and 13, any person who 
imports cotton, including de minimis amounts of cotton described in 
subsection (c),"; and 
(3) by adding at the end a new subsection to read as follows: 
"(hXl) The term 'importer' means any person who enters, or 
withdraws from warehouse, cotton for consumption in the customs 
territory of the United States. 
"(2) The term 'import' means any such entry.". 
SEC. 1998. REPORTS. 
7 USC 2101 note. 
(a) IN GENERAL.—Not later than 1 year after the date on which 
imports are subject to assessments under this title— 
(1) the Secretary of Agriculture shall prepare a report 
concerning the implementation and enforcement of the cotton 
research and promotion program, and any problems that may 
have arisen in the implementation and enforcement of such 
program; and 
(2) the Customs Service shall, if on such date it has any role in 
the implementation or enforcement of such assessments, pre-
pare a report concerning such implementation and enforcement 
as it relates to imports. 
(b) COMPTROLLER GENERAL REPORT.—Not prior to the date that 
occurs 3 years after the date on which imports are subject to 
assessments under this title, the Comptroller General shall prepare 
a report concerning the administration of the cotton research and 
promotion program as it relates to such imports. Such report shall 
be submitted not later than 6 months after such date, and include 
an analysis of— 
104 STAT. 3914 
PUBLIC LAW 101-624—NOV. 28, 1990 
(1) the growth in the United States market for cotton and 
cotton products, with particular attention provided to the period 
of time subsequent to the imposition of assessments on such 
imports; 
(2) the extent to which import restrictions, such as quotas, on 
imports of cotton and cotton-containing products have per-
mitted or prevented importers from benefiting from any such 
growth in the United States market; and 
(3) the relevant United States international obligations ap-
plicable under trade agreements that relate to the assessments 
on imports of cotton and cotton products under this title. 
(c) SUBMISSION.—The reports required under subsections (a) and 
(b) shall be submitted to the Clommittee on Agriculture and the 
Committee on Ways and Means of the House of Representatives, 
and the Committee on Agriculture, Nutrition, and Forestry and the 
Committee on Finance of the Senate not later than the applicable 
dates referred to in such subsections. 
(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 
be appropriated such funds as may be necessary to carry out this 
section. 
Fluid Milk 
Promotion Act 
of 1990. 
Subtitle H—Processor-Funded Milk Promotion 
Program 
7 u s e 6401 note. 
SEC. 1999A. SHORT TITLE, 
This subtitle may be cited as the "Fluid Milk Promotion Act of 
1990". 
7 use 6401. 
SEC. 1999B. FINDINGS AND DECLARATION OF POLICY. 
(a) FINDINGS.—Congress finds that— 
(1) fluid milk products are basic foods and are a primary 
source of required nutrients such as calcium, and otherwise are 
a valuable part of the human diet; 
(2) fluid milk products must be readily available and mar-
keted efficiently to ensure that the people of the United States 
receive adequate nourishment; 
(3) the dairy industry plays a significant role in the economy 
of the United States, in that milk is produced by thousands of 
milk producers and dairy products (including fluid milk prod-
ucts) are consumed every day by millions of people in the 
United States; 
(4) the processing of milk into fluid milk products and the 
marketing of such products are important to the dairy industry 
because the fluid milk segment of the dairy market contributes 
substantially to ensuring that the prices paid to milk producers 
for raw milk are stable and adequate to maintain the overall 
strength of the dairy industry; 
(5) the maintenance and expansion of markets for fluid milk 
products are vital to the Nation's fluid milk processors and milk 
producers, as well as to the general economy of the United 
States; 
(6) the cooperative development, financing, and implementa-
tion of a coordinated program of advertising and promotion of 
fluid milk products is necessary to maintain and expand mar-
kets for fluid milk products; 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3915 
(7) it is appropriate to finance the cooperative program de-
scribed in paragraph (6) with self-help assessments paid by the 
fluid milk processors; and 
(8) fluid milk products move in interstate and foreign com-
merce, and fluid milk products that do not move in such chan-
nels of commerce directly burden or affect interstate commerce 
in fluid milk products. 
(b) POLICY.—It is declared to be the policy of Congress that it is in 
the public interest to authorize the establishment, through the 
exercise of the powers provided in this subtitle, of an orderly 
procedure for developing, financing (through adequate assessments 
on fluid milk products produced in the United States) and carrying 
out an effective and coordinated program of advertising designed to 
strengthen the position of the dairy industry in the marketplace and 
to maintain and expand markets and uses for fluid milk products 
produced in the United States. Nothing in this subtitle shall be 
construed to provide for the control of production or otherwise limit 
the right of individual milk producers to produce milk. 
SEC. 1999C. DEFINITIONS. 
7 USC 6402. 
As used in this subtitle: 
(1) 
ADVERTISING.—The 
term 
"advertising" 
means 
any 
advertising or promotion program involving only fluid milk 
products and directed toward increasing the general demand for 
fluid milk products. 
(2) BOARD.—The term "Board" means the National Processor 
Advertising and Promotion Board established under section 
1999H(b). 
(3) FLUID MILK PRODUCT.—The term "fluid milk product"— 
(A) means any of the following products in fluid or frozen 
form: milk, skim milk, lowfat milk, milk drinks, buttermilk, 
filled milk, and milkshake and ice milk mixes containing 
less than 20 percent total solids, including any such prod-
ucts that are flavored, cultured, modified with added nonfat 
milk solids, concentrated (if in a consumer-type package), or 
reconstituted; and 
(B) does not include evaporated or condensed milk (plain 
or sweetened), evaporated or condensed skim milk (plain or 
sweetened), formulas specially prepared for infant feeding 
or dietary use that are packaged in hermetically sealed 
glass or all-metal containers, any product that contains by 
weight less than 6.5 percent nonfat milk solids, and whey. 
(4) FLUID MILK PROCESSOR.—The term "fluid milk processor" 
means any person who processes and markets commercially 
fluid milk products in consumer-type packages. 
(5) DEPARTMENT.—The term "Department" means the Depart-
ment of Agriculture. 
(6) RESEARCH.—The term "research"— 
(A) means market research limited to the support of 
advertising and promotion efforts, including educational 
activities; and 
(B) does not include research directed to product 
characteristics such as nutrients; product development 
including new products; or improved technology in produc-
tion, manufacturing or processing; or any other efforts not 
directly applicable to measuring or increasing the effective-
104 STAT. 3916 
PUBLIC LAW 101-624—NOV. 28, 1990 
ness of advertising activities in expanding sales of fluid 
milk products. 
(7) SECRETARY.—The term "Secretary" means the Secretary of 
Agriculture. 
(8) UNITED STATES.—The term "United States", except as used 
in sections 1999K through 1999M, means the 48 contiguous 
States in the continental United States and the District of 
Columbia. 
7 use 6403. 
SEC. 1999D. AUTHORITY TO ISSUE ORDERS. 
(a) IN GENERAL.—To effectuate the declared policy under section 
1999B(b), the Secretary shall issue and from time to time may 
amend, orders applicable to all fluid milk processors, authorizing— 
(1) the collection of assessments on fluid milk products subject 
to this subtitle; and 
(2) the use of the assessments to provide research and 
advertising in a manner prescribed by this subtitle. 
(b) SCOPE.—Any order issued under this subtitle shall be national 
in scope. 
(c) ONE ORDER.—Not more than one order shall be in effect under 
this subtitle at any one time. 
7 use 6404. 
SEC. 1999E. NOTICE AND COMMENT. 
Not later than 60 days after the Secretary receives a request for 
the issuance of an order under this subtitle, and a specific proposal 
for an order from individual fluid milk processors that marketed 
during a representative period, as determined by the Secretary, not 
less than 30 percent of the volume of fluid milk products marketed 
by all processors, the Secretary shall publish the proposed order and 
give due notice and opportunity for public comment on the proposed 
order. 
7 use 6405. 
SEC. 1999F. FINDINGS AND ISSUANCE OF ORDERS. 
(a) IN GENERAL.—After notice and opportunity for public com-
ment are given, as provided in section 1999E, the Secretary shall 
issue an order, taking into consideration the comments received and 
including in the order provisions necessary to ensure that the order 
is in conformity with the requirements and the declared policy of 
this subtitle. 
(b) EFFECTIVE DATE.—Such order shall be issued and, if approved 
by fluid milk processors as provided in section 1999N, shall become 
effective not later than 180 days following publication of the pro-
posed order. 
7 u s e 6406. 
SEC. 1999G. REGULATIONS. 
The Secretary may issue such regulations as may be necessary to 
carry out this subtitle and the powers vested in the Secretary by this 
subtitle. 
7 use 6407. 
SEC. 1999H. REQUIRED TERMS IN ORDERS. 
(a) IN GENERAL.—Each order issued under this subtitle shall 
contain the terms and conditions prescribed in this section. 
(b) NATIONAL PROCESSOR ADVERTISING AND PROMOTION BOARD.— 
(1) ESTABLISHMENT.—The order shall establish a National 
Processor Advertising and Promotion Board to administer the 
order. 
(2) SERVICE TO THE ENTIRE INDUSTRY.—In administering the 
order, the Board shall carry out programs and projects that will 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3917 
provide maximum benefit to the fluid milk industry and pro-
mote only fluid milk products. The Board shall, to the extent 
practicable, ensure that advertising coverage in each region is 
proportionate to the funds collected from each region. 
(3) REGIONS.—The Secretary shall establish not less thsm 12 
nor more than 15 regions in order to ensure appropriate geo-
graphic representation on the Board. 
(4) BOARD MEMBERSHIP.—The Board shall consist of one 
member appointed by the Secretary, from among fluid milk 
processors, to represent each of the regions established under 
paragraph (3), with the membership representing, to the extent 
practicable, differing sizes of operations. The Secretary shall 
appoint five additional at-large members to the Board, of which 
at least three shall be fluid milk processors and at least one 
shall be from the general public. 
(5) TERMS OF OFFICE.—The members of the Board shall serve 
for terms of 3 years, except that the members appointed to the 
initial Board shall serve, proportionately, for terms of 1, 2, and 3 
years, as determined by the Secretary. No member shall serve 
for more than 2 consecutive terms, except that the members 
that are selected to serve for the initial term of 1 or 2 years 
shall be eligible to be reappointed for a 3-year term. 
(6) COMPENSATION.—Each member of the Board shall serve 
without compensation, but shall be reimbursed for necessary 
and reasonable expenses incurred in the performance of duties 
of the Board. 
(c) POWERS AND DUTIES OF THE BOARD.—The order shall define the 
powers and duties of the Board, which shall include the power and 
duty— 
(1) to administer the order in accordance with the terms and 
conditions of the order; 
(2) to make rules to effectuate the terms and conditions of the 
order; 
(3) to receive, investigate, and report to the Secretary com-
plaints of violations of the order; 
(4) to develop and recommend such rules, regulations, and 
amendments to the order to the Secretary for approval as may 
be necessary for the development and execution of programs or 
projects to carry out the order; 
(5) to employ such persons as the Board considers necessary 
and determine the compensation and define the duties of the 
persons; 
(6) to prepare and submit for the approval of the Secretary, 
prior to the beginning of each fiscal year, a fiscal year budget of 
the anticipated expenses in the administration of the order, 
including the probable costs of all programs and projects; 
(7) to develop programs and projects, subject to subsection (d); 
(8) to enter into contracts or agreements, with the approval of 
the Secretary, to develop and carry out programs or projects of 
research and advertising; 
(9) to carry out advertising or research, and pay the costs of 
the projects with funds collected pursuant to section 1999J; 
(10) to keep minutes, books, and records that reflect all of the Records, 
acts and transactions of the Board, and promptly report min- Reports, 
utes of each Board meeting to the Secretary; 
(11) to furnish the Secretary with such other information as 
the Secretary may require; and 
104 STAT. 3918 
PUBLIC LAW 101-624—NOV. 28, 1990 
Investments. 
(12) to invest funds collected by the Board pursuant to subsec-
tion (g). 
(d) PLANS AND BUDGETS.— 
(1) BUDGETS.—The order shall require the Board, prior to the 
beginning of each fiscal year, or as may be necessary after the 
beginning of the fiscal year, to develop budgets of the antici-
pated expenses and disbursements of the Board in the im-
plementation of the order, including projected costs of research 
and advertising. The budget shall be submitted to the Secretary 
and be effective on the approval of the Secretary. 
(2) INCURRING EXPENSES.—The Board may incur such ex-
penses for research or advertising of fluid milk products, and 
other expenses for the administration, maintenance, and func-
tioning of the Board, as may be authorized by the Secretary. 
The expenses shall include any implementation, administrative, 
and referendum costs incurred by the Department. 
(3) PAYING EXPENSES.—The funds to cover the expenses re-
ferred to in paragraph (2) shall be paid from assessments col-
lected under section 1999J. 
(4) LIMITATION ON SPENDING.—Effective 1 year after the date 
of the establishment of the Board, the Board shall not spend in 
excess of 5 percent of the assessments collected for the adminis-
tration of the Board. 
(e) PROHIBITION ON BRANDED ADVERTISING.—A program or project 
conducted under this subtitle shall not make any reference to 
private brand names or use false or unwarranted claims on behalf of 
fluid milk products, or false or unwarranted statements with respect 
to the attributes or use of any competing products, except that this 
subsection shall not preclude the Board from offering its programs 
and projects for use by commercial parties, under such terms and 
conditions as the Board may prescribe as approved by the Secretary. 
(f) CONTRACTS AND AGREEMENTS.— 
(1) IN GENERAL.—To ensure efficient use of funds collected 
under this subtitle, the order shall provide that the Board may 
enter into contracts or agreements for the implementation and 
carrying out of programs or projects for fluid milk products 
research and advertising and for the payment of the costs of the 
programs or projects with funds received by the Board under 
the order. 
(2) REQUIREMENTS.—Any such contract or agreement shall 
provide that— 
(A) the contracting party shall develop and submit to the 
Board a program or project, together with a budget or 
budgets that shall disclose estimated costs to be incurred 
for such program or project; 
(B) the program or project shall become effective on the 
approval of the Secretary; and 
Records. 
(C) the contracting party shall keep accurate records of 
Reports. 
^11 of the transactions of the contracting party, account for 
funds received and expended, make periodic reports to the 
Board of activities conducted, and make such other reports 
as the Board or the Secretary may require. 
(g) INVESTMENT OF FUNDS.— 
(1) IN GENERAL.—The order shall provide that the Board, with 
the approval of the Secretary, may invest assessment funds 
collected by the Board under the order, pending disbursement of 
the funds, only in— 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3919 
(A) obligations of the United States or any agency 
thereof; 
(B) general obligations of any State or any political sub-
division thereof; 
(C) any interest-bearing account or certificate of deposit 
of a bank that is a member of the Federal Reserve System; 
or 
(D) obligations fully guaranteed as to principal and 
interest by the United States. 
(2) INCOME.—Income from giny such investment may be used 
for any purpose for which the invested funds may be used, 
(h) BOOKS AND RECORDS OF BOARD.— 
(1) IN GENERAL.—The order shall require the Board to— 
(A) maintain such books and records (which shall be 
available to the Secretary for inspection and audit) as the 
Secretary may prescribe; 
(B) prepare and submit to the Secretary, from time to Reports. 
time, such reports as the Secretary may prescribe; and 
(C) account for the receipt and disbursement of all funds 
entrusted to the Board. 
(2) AUDITS.—The Board shall cause the books and records of 
the Board to be audited by an independent auditor at the end of 
each fiscal year. A report of each such audit shall be submitted Reports. 
to the Secretary. 
(i) BOOKS AND RECORDS OF PROCESSORS.— 
(1) IN GENERAL.—The order shall require that each fluid milk 
processor subject to this subtitle maintain and make available 
for inspection such books and records as may be required by the 
order and file reports at the time, in the manner, and having 
the content prescribed by the order. 
(2) USE OF INFORMATION.—Information obtained under para-
graph (1) shall be made available to the Secretary as is appro-
priate for the effectuation, administration, or enforcement of 
this subtitle, or any order or regulation issued under this 
subtitle. 
(3) CONFIDENTIALITY.— 
(A) IN GENERAL.—Except as provided in subparagraphs 
(B) and (C), commercial or financial information that is 
obtained under paragraph (1) or (2) and that is privileged or 
confidential shall be kept confidential by all officers and 
employees of the Department and agents of the Board, and 
only such information so obtained as the Secretary consid-
ers relevant may be disclosed to the public by them and 
then only in a suit or administrative hearing brought at the 
request of the Secretary, or to which the Secretary or any 
officer of the United States is a party, and involving the 
order. 
(B) AvAiLABiUTY OF INFORMATION.—Except £is Otherwise 
provided in this subtitle, information obtained under this 
subtitle may be made available to another agency of the 
Federal Government for a civil or criminal law enforcement 
activity if the activity is authorized by law and if the head 
of the agency has made a written request to the Secretary 
specifying the particular information desired and the law 
enforcement activity for which the information is sought. 
(C) OTHER EXCEPTIONS.—Nothing in subparagraph (A) 
may be construed to prohibit— 
104 STAT. 3920 
PUBLIC LAW 101-624—NOV. 28, 1990 
(i) the issuance of general statements, bsised on the 
reports, of the number of persons subject to an order or 
statistical data collected from the persons, which state-
ments do not identify the information furnished by any 
person; or 
(ii) the publication, by direction of the Secretary, of 
the name of any person violating any order, together 
with a statement of the particular provisions of the 
order violated by the person. 
(4) PENALTY.—Any person violating this subsection, on convic-
tion, shall be subject to a fine of not more than $1,000 or to 
imprisonment for not more than 1 year, or both, and if such 
person is an agent of the Board or an officer or employee of the 
Department, shall be removed from office. 
(5) WITHHOLDING INFORMATION.—Nothing in this subsection 
shall authorize the Secretary to withhold information from a 
duly authorized committee or subcommittee of C!ongress. 
(6) TIME REQUIREMENT.—The records required under para-
graph (1) shall be maintained for 2 years beyond the fiscal year 
of the applicability of the records. 
(j) PROHIBITION ON USE OF FUNDS TO INFLUENCE GOVERNMENTAL 
ACTION.— 
(1) IN GENERAL.—Except as otherwise provided in paragraph 
(2), the order shall prohibit any funds collected by the Board 
under the order from being used in any manner for the purpose 
of influencing legislation or government action or policy. 
(2) EXCEPTION.—Paragraph (1) shall not apply to the develop-
ment or recommendation of amendments to the order. 
(k) COORDINATION.—The order shall require the Board to take 
reasonable steps to coordinate the collection of assessments, and 
advertising and research activities of the Board with the National 
Dairy Promotion and Research Board established under section 
113(b) of the Dairy Production Stabilization Act of 1983 (7 U.S.C. 
45040?)). 
(1) EXEMPTIONS.—The order shall exempt fluid milk products ex-
ported from the United States from assessments under the order. 
(m) REPORT.—The Secretary shall provide annually for an 
independent evaluation of the effectiveness of the fluid milk pro-
motion program carried out under this subtitle during the previous 
fiscal year, in conjunction with the evaluation of the National Dairy 
Promotion and Research Board established under section 1130?) of 
the Dairy Production Stabilization Act of 1983 (7 U.S.C. 450403)). 
(n) OTHER TERMS AND CONDITIONS.—The order also shall contain 
such terms and conditions, not inconsistent with this subtitle, as are 
necessary to effectuate this subtitle, including regulations relating 
to the assessment of late payment charges. 
7 use 6408. 
SEC. 19991. PERMISSIVE TERMS. 
(a) IN GENERAL.—Each order issued under this subtitle may con-
tain one or more of the terms and conditions described in this 
section. 
0>) ADVERTISING.—The order may provide for the establishment, 
issuance, effectuation, and administration of appropriate programs 
or projects for the advertising of fluid milk products and the use of 
funds collected under this subtitle for such programs or projects. 
(c) RESEARCH AND DEVELOPMENT.—The order may provide for 
establishing and carrying out research projects and studies to sup-
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3921 
port the advertising efforts for fluid milk products, and the use of 
funds collected under the order for such projects and studies. 
(d) RESERVE FUNDS.—The order may provide authority to accumu-
late reserve funds from assessments collected pursuant to the order, 
to permit an effective and continuous coordinated program of re-
search and advertising in years when the £issessment income may be 
reduced, except that the total reserve fund may not exceed 25 
percent of the amount budgeted for the operation in the current 
fiscal year of the order. 
(e) OTHER TERMS.—The order may contain such other terms and 
conditions incidental to and not inconsistent with the terms and 
conditions specified in this subtitle as are necessary to effectuate the 
other provisions of the order. 
SEC. 1999J. ASSESSMENTS. 
7 USC 6409. 
(a) IN GENERAL.—The order shall provide that each fluid milk 
processor shall pay an assessment on each unit of fluid milk product 
that such person processes and markets commercially in consumer-
t3rpe packages in the United States. 
(b) No EFFECT ON PRODUCER PRICES.—Such assessments shall 
not— 
(1) reduce the prices paid under the Federal milk marketing 
orders issued under section 8c of the Agricultural Adjustment 
Act (7 U.S.C. 608c), reenacted with amendments by the Agricul-
tural Marketing Agreement Act of 1937; 
(2) otherwise be deducted from the amounts that handlers 
must pay to producers for fluid milk products sold to a proc-
essor; or 
(3) otherwise be deducted from the price of milk paid to a 
producer by a handler, as determined by the Secretary. 
(c) REMITTING ASSESSMENTS.— 
(1) IN GENERAL.—Assessments required under subsection (a) 
shall be remitted by the fluid milk processor directly to the 
Board in accordance with the order and regulations issued by 
the Secretary. 
(2) TIMES TO REMIT ASSESSMENT.—Each processor who 
is 
responsible for the remittance of an assessment under para-
graph (1) shall remit the assessment to the Board not later than 
the last day of the month following the month that the milk 
being assessed was marketed. 
(3) VERIFICATION.—Remittances shall be verified by market 
administrators and State regulatory officials, and local and 
State Agricultural Stabilization and Conservation Service of-
fices, as provided by the Secretary. 
(d) LIMITATION ON ASSESSMENTS.—Not more than one assessment 
may be assessed under this section for the purposes of this subtitle 
on a processor for any unit of fluid milk product. 
(e) PRODUCER-HANDLERS.—Producer-handlers that are required to 
pay the assessment imposed under section 113(g) of the Dairy 
Production Stabilization Act of 1983 (7 U.S.C. 4504(g)) shall also be 
responsible for the additional assessment imposed by this section. 
(f) PROCESSOR ASSESSMENT RATE.—Except as provided in section 
1999P(b), the rate of assessment prescribed by the order shall be 20 
cents per hundredweight of fluid milk products marketed. 
SEC. 1999K. PETITION AND REVIEW. 
7 USC 6410. 
(a) PETITION.— 
104 STAT. 3922 
PUBLIC LAW 101-624—NOV. 28, 1990 
(1) IN GENERAL.—A person subject to an order issued under 
this subtitle may file with the Secretary a petition— 
(A) stating that the order, any provision of the order, or 
any obligation imposed in connection with the order is not 
established in accordance with law; and 
(B) requesting a modification of the order or an exemp-
tion from the order. 
(2) HEARINGS.—The petitioner shall be given the opportunity 
for a hearing on the petition, in accordance with regulations 
issued by the Secretary. 
(3) RUUNG.—After the hearing, the Secretary shall make a 
ruling on the petition, which shall be final if in accordance with 
law. 
(b) REVIEW.— 
(1) COMMENCEMENT OF ACTION.—The district courts of the 
United States in any district in which the person who is a 
petitioner under subsection (a) resides or carries on business are 
hereby vested with jurisdiction to review the ruling on such 
person's petition, if a complaint for that purpose is filed within 
20 days after the date of the entry of a ruling by the Secretary 
under subsection (a). 
(2) PROCESS.—Service of process in such proceedings shall be 
conducted in accordance with the Federal Rules of Civil Proce-
dure. 
(3) REMANDS.—If the court determines that such ruling is not 
in accordance with law, the court shall remand the matter to 
the Secretary with directions either— 
(A) to make such ruling as the court shall determine to be 
in accordance with law; or 
(B) to take such further proceedings as, in the opinion of 
the court, the law requires. 
7 u s e 6411. 
SEC. 1999L. ENFORCEMENT. 
(a) JURISDICTION.—The several district courts of the United States 
are vested with jurisdiction specifically to enforce, and to prevent 
and restrain any person from violating, any order or regulation 
made or issued under this subtitle. 
(b) REFERRAL TO ATTORNEY GENERAL.—A civil action authorized to 
be brought under this subsection shall be referred to the Attorney 
General for appropriate action, except that the Secretary is not 
required to refer to the Attorney General a violation of this subtitle, 
or any order or regulation issued under this subtitle, if the Secretary 
believes that the administration and enforcement of this subtitle 
would be adequately served by providing a suitable written notice or 
warning to the person who committed such violation or by adminis-
trative action under subsection (c). 
(c) CIVIL PENALTIES AND ORDERS.— 
(1) CIVIL PENALTIES.—Any person who violates any provision 
of any order or regulation issued by the Secretary under this 
subtitle, or who fails or refuses to pay, collect, or remit giny 
assessment or fee duly required of the person under the order or 
regulations, may be assessed— 
(A) a civil penalty by the Secretary of not less than $500 
nor more than $5,000 for each such violation; or 
(B) in the case of a willful failure or refusal to pay, collect, 
or remit any assessment or fee duly required of the person 
under this subtitle or a regulation issued under this sub-
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3923 
title, a civil penalty by the Secretary of not less than 
$10,000 nor more than $100,000 for each such violation. 
Each violation shall be a separate offense. 
(2) CEASE-AND-DESIST ORDERS.—In addition to, or in lieu of, a 
civil penalty, the Secretary may issue an order requiring the 
person to cease and desist from continuing such violation. 
(3) NOTICE AND HEARING.—No penalty shall be assessed or 
cease-and-desist order issued by the Secretary unless the person 
against whom the penalty is assessed or the order issued is 
given notice and opportunity for a hearing before the Secretary 
with respect to such violation. 
(4) FiNAUTY.—The order of the Secretary assessing a penalty 
or imposing a cease-and-desist order shall be final and conclu-
sive unless the affected person files an appeal from the Sec-
retary's order with the appropriate district court of the United 
States in accordance with subsection (d). 
(d) REVIEW BY DISTRICT COURT.— 
(1) COMMENCEMENT OF ACTION.—Any person against whom a 
violation is found and a civil penalty assessed or cease-and-
desist order issued under subsection (c) may obtain review of the 
penalty or order by— 
(A) filing, within the 30-day period beginning on the date 
the penalty is assessed or order issued, a notice of appeal 
in— 
(i) the district court of the United States for the 
district in which the person resides or carries on busi-
ness; or 
(ii) the United States District Court for the District of 
Columbia; and 
(B) simultaneously sending a copy of the notice by cer-
tified mail to the Secretary. 
(2) RECORD.—The Secretary shall file promptly in such court a 
certified copy of the record on which the Secretary found that 
the person had committed a violation. 
(3) STANDARD OF REVIEW.—A finding of the Secretary shall be 
set aside only if the finding is found to be unsupported by 
substantial evidence. 
(e) FAILURE TO OBEY ORDERS.—Any person who fails to obey a 
ce£ise-and-desist order after the order has become final and 
unappealable, or after the appropriate United States district court 
has entered a final judgment in favor of the Secretary, shall be 
subject to a civil penalty assessed by the Secretary, after oppor-
tunity for a hearing and for judicial review under the procedures 
specified in subsections (c) and (d), of not more than $5,000 for each 
offense. Each day during which the failure continues shall be consid-
ered as a separate violation of such order. 
(f) FAILURE TO PAY PENALTIES.—If any person fails to pay an 
assessment of a civil penalty after it has become a final and 
unappealable order, or after the appropriate United States district 
court has entered final judgment in favor of the Secretary, the 
Secretary shall refer the matter to the Attorney General for recov-
ery of the amount assessed in the district court in which the person 
resides or conducts business. In the action, the validity and appro-
priateness of the final order imposing the civil penalty shall not be 
subject to review. 
104 STAT. 3924 
PUBLIC LAW 101-624—NOV. 28, 1990 
(g) ADDITIONAL REMEDIES.—The remedies provided in this subtitle 
shall be in addition to, and not exclusive of, other remedies that may 
be available. 
7 use 6412. 
SEC. 1999M. INVESTIGATIONS AND POWER TO SUBPOENA. 
(a) INVESTIGATIONS.—The Secretary may make such investigations 
as the Secretary considers necessary— 
(1) for the effective administration of this subtitle; or 
(2) to determine whether any person has engaged or is engag-
ing in any act that constitutes a violation of this subtitle, or any 
order, rule, or regulation issued under this subtitle. 
(b) SUBPOENAS, OATHS, AND AFFIRMATIONS.— 
(1) IN GENERAL.—For the purpose of an investigation under 
subsection (a), the Secretary may administer oaths and affirma-
tions, and issue a subpoena to require the production of any 
records that are relevant to the inquiry. The production of any 
such records may be required from any place in the United 
States. 
(2) 
ADMINISTRATIVE 
HEARINGS.—For 
the 
purpose 
of 
an 
administrative hearing held under section 1999K or 1999L, the 
presiding officer is authorized to administer oaths and affirma-
tions, subpoena witnesses, compel their attendance, take evi-
dence, and require the production of any records that are 
relevant to the inquiry. Such attendance of witnesses and the 
production of any such records may be required from any place 
in the United States. 
(c) AID OF COURTS.—In the case of contumacy by, or refusal to obey 
a subpoena issued to, any person, the Secretary may invoke the aid 
of any court of the United States within the jurisdiction of which 
such investigation or proceeding is carried on, or where such person 
resides or carries on business, in order to enforce a subpoena issued 
by the Secretary under subsection (b). The court may issue an order 
requiring such person to comply with such a subpoena. 
(d) CONTEMPT.—Any failure to obey such order of the court may be 
punished by such court as a contempt thereof. 
(e) PROCESS.—Process in any such case may be served in the 
judicial district in which such person resides or conducts business or 
wherever such person may be found. 
(f) HEARING SITE.—The site of any hearings held under section 
1999K or 1999L shall be within the judicial district where such 
person resides or has a principal place of business. 
7 use 6413. 
SEC. 1999N. REQUIREMENT OF INITIAL REFERENDUM. 
(a) IN GENERAL.—Within the 60-day period immediately preceding 
the effective date of an order issued under section 1999F(a), the 
Secretary shall conduct a referendum among fluid milk processors 
to ascertain whether the order shall go into effect. 
(b) IMPLEMENTATION.—If, as a result of the referendum conducted 
under subsection (a), the Secretary determines that implementation 
of the order is favored— 
(1) by at least 50 percent of fluid milk processors voting in the 
referendum; and 
(2) by fluid milk processors voting in the referendum that 
marketed during the representative period, as determined by 
the Secretary, 60 percent or more of the volume of fluid milk 
products marketed by all processors; 
the order shall become effective as provided in section 1999F0t)). 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3925 
(c) COSTS OF REFERENDUM.—The Secretary shgill be reimbursed 
from any assessments collected by the Board for any expenses 
incurred by the Department in connection with the conduct of any 
referendum under this subtitle. 
(d) MANNER.— 
(1) IN GENERAL.—Referenda conducted pursuant to this sub-
title shall be conducted in a manner determined by the Sec-
retary. 
(2) ADVANCE REGISTRATION.—A fluid milk processor who 
chooses to vote in any referendum conducted under this subtitle 
shall register with the Secretary prior to the voting period, after 
receiving notice from the Secretary concerning the referendum 
under paragraph (4). 
(3) VOTING.—A fluid milk processor who votes in any referen-
dum conducted under this subtitle shall vote in accordance with 
procedures established by the Secretary. The ballots and other 
information or reports that reveal or tend to reveal the vote of 
any processor shall be held strictly confidential. 
(4) NOTICE.—The Secretary shall notify all processors at least 
30 days prior to a referendum conducted under this subtitle. 
The notice shall explain the procedure established under this 
subsection. 
SEC. 19990. SUSPENSION OR TERMINATION OF ORDERS. 
7 USC 6414. 
(a) TERMINATION OF ORDER.—Any order effective under this sub-
title shall be terminated December 31, 1996. The Secretary shall— 
(1) terminate the collection of assessments under the order 
upon such date; and 
(2) terminate activities under the order in an orderly manner 
as soon as practicable after such date. 
G)) SUSPENSION OR TERMINATION BY SECRETARY.—The Secretary 
shall, whenever the Secretary finds that the order or any provision 
of the order obstructs or does not tend to effectuate the declared 
policy of this subtitle, terminate or suspend the operation of the 
order or provision. 
(c) OTHER REFERENDA.— 
(1) IN GENERAL.—The Secretary may conduct at any time a 
referendum of persons who, during a representative period as 
determined by the Secretary, have been fluid milk processors on 
whether to suspend or terminate the order, and shall hold such 
a referendum on request of the Board or any group of such 
processors that among them marketed during a representative 
period, £is determined by the Secretary, 10 percent or more of 
the volume of fluid milk products marketed by all processors. 
(2) SUSPENSION OR TERMINATION.—If the Secretary determines 
that the suspension or termination is favored— 
(A) by at least 50 percent of fluid milk processors voting 
in the referendum; and 
(B) by fluid milk processors voting in the referendum that 
marketed during a representative period, as determined by 
the Secretary, 40 percent or more of the volume of fluid 
milk products marketed by all processors; 
the Secretary shall, within 6 months after making the deter-
mination, suspend or terminate, as appropriate, collection of 
assessments under the order, and suspend or terminate, as 
appropriate, activities under the order in an orderly manner as 
soon as practicable. 
104 STAT. 3926 
PUBLIC LAW 101-624—NOV. 28, 1990 
(3) COSTS; MANNER.—Subsections (c) and (d) of section 1999N 
shall apply to a referendum conducted under this subsection. 
7 use 6415. 
SEC. 1999P. AMENDMENTS. 
(a) AMENDMENTS TO ORDER.—Subject to subsection (b), the Sec-
retary may issue such amendments to an order as may be necessary 
to carry out this subtitle. 
(b) AMENDMENT TO ASSESSMENT RATES.— 
(1) IN GENERAL.—The Secretary may conduct at any time a 
referendum of persons who, during a representative period as 
determined by the Secretary, have been fluid milk processors on 
adjusting the assessment rate under the order issued under this 
subtitle then in effect, and shall hold such a referendum on 
request of the Board or any group of such processors that among 
them marketed during a representative period, as determined 
by the Secretary, 10 percent or more of the volume of fluid milk 
products marketed by all processors. 
(2) ADJUSTMENT TO ASSESSMENT RATE.—The Secretary shall 
adjust the assessment rate under the order whenever the Sec-
retary determines that the adjustment is favored— 
(A) by at least 50 percent of fluid milk processors voting 
in the referendum; and 
(B) by fluid milk processors that marketed during a rep-
resentative period, as determined by the Secretary, 60 per-
cent or more of the volume of fluid milk products marketed 
by all processors; 
In no event shall the rate of assessment prescribed by the order 
exceed 20 cents per hundredweight. 
(3) EFFECTIVE DATE.—The adjusted assessment rate shall be 
effective on a date, as determined by the Secretary, after the 
results of the referendum are known, but not later than 30 days 
after the referendum. 
(4) COSTS; MANNER.—Subsections (c) and (d) of section 1999N 
shall apply to a referendum conducted under this subsection. 
7 use 6416. 
SEC. 1999Q. INDEPENDENT EVALUATION OF PROGRAMS. 
(a) REVIEW AND EVALUATION.—The Comptroller General of 
the United States shall review and evaluate the order to— 
(1) determine the effectiveness of the promotion program 
conducted under this subtitle on fluid milk sales; 
(2) determine if the assessments for the program have been 
passed back to milk producers by fluid milk processors; and 
(3) make recommendations for future funding and assessment 
levels for the program. 
Ob) REPORT TO CONGRESS.—The Comptroller General shall submit a 
report to the Committee on Agriculture of the House of Representa-
tives and the Committee on Agriculture, Nutrition, and Forestry of 
the Senate on the valuations made under this section no later than 
January 1,1995. 
7 use 6417. 
SEC. 1999R. AUTHORIZATION OF APPROPRIATIONS. 
(a) IN GENERAL.—There are authorized to be appropriated for each 
fiscal year such funds as are necessary to carry out this subtitle. 
0)) ADMINISTRATIVE EXPENSES.—The funds so appropriated shall 
not be available for payment of the expenses or expenditures of the 
Board in administering any provision of any order issued under this 
subtitle. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3927 
Subtitle I—Miscellaneous Provisions 
SEC. 1999S. PRODUCER RESEARCH AND PROMOTION BOARD ACCOUNT-
ABILITY. 
(a) FINDINGS.—Congress finds that— 
(1) United States agricultural producers and importers 
contribute approximately $600,000,000 annually to support agri-
cultural promotion and research, and consumer information 
relating to food and nutrition, under federally-authorized check-
off programs; 
(2) these federally-authorized checkoff programs are self-help 
efforts that enable the industry members that contribute to 
these checkoff programs to take an active role in enhancing the 
marketing of their farm products; 
(3) the federally-authorized checkoff programs, while rel-
atively new, have substantially contributed to strengthening 
markets for the agricultural products covered by the programs; 
(4) the authorizing legislation for these agricultural check-off 
programs provides for the Secretary of Agriculture to appoint 
boards or councils comprised of producers and importers to 
assist the Secretary in administering the programs under the 
Secretary's oversight; 
(5) the boards and councils that participate in administering 
the federally-authorized checkoff programs, in each instance, 
have important responsibilities under, and make substantial 
contributions to the effective management of, the programs 
while serving as a valuable link between the industry members 
that are funding the promotion, research, and information 
activities under the programs and the Department of Agri-
culture; 
(6) the producers and importers that pay assessments to 
support the programs must have confidence in, and strongly 
support, the checkoff programs if these programs are to con-
tinue to succeed; and 
(7) the checkoff programs cannot operate efficiently and effec-
tively, nor can producer confidence and support for these pro-
grams be maintained, unless the boards and councils faithfully 
and diligently perform the functions assigned to them under the 
authorizing legislation. 
(b) SENSE OF THE CONGRESS.—It is the sense of Congress that, to 
ensure the continued success of the federally-authorized checkoff 
programs, boards or councils that participate in the administration 
of the checkoff programs should take care to faithfully and 
diligently perform the functions assigned to them under the 
authorizing legislation and otherwise meet their crucial program 
responsibilities. It further is the sense of Congress that each of these 
boards and councils, in carr3dng out the responsibilities assigned to 
it, is accountable to the Secretary of Agriculture, Congress, and the 
industry contributing funds for the checkoff program involved, and 
that each currently operational checkoff board or council should 
review its charter and activities to ensure that its responsibilities 
and duties have not been inappropriately delegated or otherwise 
relinquished to another organization. 
104 STAT. 3928 
PUBLIC LAW 101-624—NOV. 28, 1990 
7 u s e 2278. 
Grain Quality 
Incentives Act of 
1990. 
7 u s e 71 note. 
7 use 75b. 
Exports. 
Exports. 
SEC. 1999T. CONSISTENCY WITH INTERNATIONAL OBLIGATIONS OF THE 
UNITED STATES. 
(a) IN GENERAL.—Prior to the promulgation of, or amendment to, 
any order or plan under a research and promotion program relating 
to research and promotion of any agricultural commodity or prod-
uct, after the date of enactment of this title, where such order or 
plan would provide for an assessment on imports, the Secretary of 
Agriculture shall consult with the United States Trade Representa-
tive regarding the consistency of the provisions of the order or plan 
with the international obligations of the United States. 
(b) CoMPUANCE WITH U.S. INTERNATIONAL OBUGATIONS.—The Sec-
retary of Agriculture shall take all steps necessary and appropriate 
to ensure that any order or plan or amendment to such order or 
plan, and the implementation and enforcement of any order or plan 
or amendment to such order or plan, or program as it relates to 
imports is nondiscriminatory and in compliance with the inter-
national obligations of the United States, as interpreted by the 
United States Trade Representative. 
(c) CONSTRUCTION.—Nothing in this section shall be construed as 
providing for a cause of action under this section. 
TITLE XX—GRAIN QUALITY 
SEC. 2001. SHORT TITLE. 
This title may be cited as the 
1990". 
'Grain Quality Incentives Act of 
SEC. 2002. COMMITTEE ON GRAIN QUALITY AND GRAIN QUALITY 
COORDINATOR. 
(a) ESTABUSHMENT OF COMMITTEE AND COORDINATOR.— 
(1) COMMITTEE.—The Secretary of Agriculture (hereafter re-
ferred to in this title as the "Secretary") shall establish, within 
the Department of Agriculture, a Committee on Grain Quality 
Giereafter referred to in this section as the "Committee"). 
(2) COORDINATOR.—The Committee established under para-
graph (1) shall be chaired by an individual, appointed by the 
Secretary, who shall serve as the Grain Quality Coordinator 
(hereafter referred to in this title as the "Coordinator") and, in 
consultation with the Committee, carry out the duties described 
in subsection (b). 
(b) DUTIES.—The Coordinator shall be responsible for— 
(1) assembling and evaluating, in a systematic manner, con-
cerns and problems with the quality of United States grain, 
expressed by foreign and domestic buyers and end-users; 
(2) developing and implementing a coordinated effort to 
inform and educate foreign buyers concerning the proper speci-
fications of grain purchase contracts to obtain the quality of 
grain they desire; 
(3) reviewing the programs and activities of the Department 
of Agriculture with respect to United States grain to determine 
whether the activities are consistent with the provisions of this 
title (and other provisions of law) as such provisions relate to 
grain quality and grain quality competitiveness; 
(4) serving as the Federal Government coordinator with re-
spect to grain quality and grain quality competitiveness; and 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3929 
(5) investigating and communicating, through the Secretary, 
to the Committee on Agriculture of the House of Representa-
tives and the Committee on Agriculture, Nutrition, and For-
estry of the Senate concerning— 
(A) actions undertaken by the Department of Agri-
culture— 
(i) to improve the quality of United States grain; and 
(ii) that are inconsistent with the goal of improving 
grain quality; 
(B) conditions in the production and marketing sectors 
that discourage improvements in grain quality; 
(C) interrelationships of rules and actions taken by the 
Federal Grain Inspection Service, other agencies of the 
Department of Agriculture, Food and Drug Administration, 
Environmental Protection Agency, and other Federal agen-
cies, relating to grain production, handling, storage, 
transportation, and processing as such actions affect the 
wholesomeness and performance of grain; 
(D) recommendations 
for 
legislative 
or 
regulatory 
changes that would address grain queility issues; 
(E) progress made and benefits expected from the inter-
national harmonization of sanitary and ph5^osanitary 
requirements affecting grain; 
(F) potential opportunities and benefits from the inter-
national harmonization of grain grades and standards; 
(G) alternative forms of financial and technical assistance 
available and needed by producers and elevator operators 
to acquire and properly utilize grain cleaning, drying, and 
storage equipment; and 
(H) progress on requirements of other sections of this 
title, 
(c) TERMINATION.—This section shall terminate on January 1, 
2001. 
SEC. 2003. BENEFITS AND COSTS ASSOCIATED WITH IMPROVED GRAIN 7 USC 76 note. 
QUALITY. 
The Administrator of the Federal Grain Inspection Service shall 
estimate the economic impact, including the benefits and costs and 
the distribution of such benefits and costs, of any major changes 
necessary to carry out the amendments made under this title to 
sections 4 and 13 of the United States Grain Standards Act (7 U.S.C. 
76 and 87b) prior to making such changes. 
SEC. 2004. CLASSIFICATION, GRADES AND STANDARDS DESIGN FRAME-
WORK. 
Section 2(b)(3) of the United States Grain Standards Act (7 U.S.C. 
74(b)(3)) is amended— 
(1) in subparagraph (C), by striking "and" at the end thereof; 
(2) in subparagraph (D), by striking the period and inserting a 
semicolon; and 
(3) by adding at the end thereof the following new subpara-
graphs: 
"(E) reflect the economic value-based characteristics in 
the end uses of grain; and 
"(F) accommodate scientific advances in testing and new 
knowledge concerning factors related to, or highly cor-
related with, the end use performance of grain.". 
104 STAT. 3930 
PUBLIC LAW 101-624—NOV. 28, 1990 
SEC. 2005. IMPROVING THE CLEANLINESS OF GRAIN. 
Section 4(b) of the United States Grain Standards Act (7 U.S.C. 
7603)) is amended— 
(1) by inserting "(1)" after the subsection designation; and 
(2) by adding at the end thereof the following new paragraph: 
"(2XAXi) If the Administrator determines that the establishment 
or amendment of standards regarding cleanliness conditions of 
wheat, corn, barley, sorghum and soybeans that meet the require-
ments for grade number 3 or better (as set forth in subparagraph 
(B)) would— 
"(I) enhance the competitiveness of exports of wheat, corn, 
barley, sorghum and soybeans from the United States with 
wheat, corn, barley, sorghum and soybean exports marketed by 
other major exporters; 
"(II) result in the maintenance or expansion of the United 
States export market share for wheat, corn, barley, sorghum 
and soybeans; 
"(III) result in the maintenance or increase of United States 
producer income; and 
"(IV) be in the interest of United States agriculture, taking 
into consideration technical constraints, economic benefits and 
costs to producers and industry, price competitiveness, and 
importer needs; 
the Administrator shall establish or amend the standards to include 
economically and commercially practical levels of cleanliness for 
wheat, corn, barley, sorghum and soybeans. 
"(ii) The Administrator shall make a finding under this subsection 
for grain of the t3T)e described in clause (i) as soon as practicable 
after the date of enactment of this paragraph. 
"(B)(i) In establishing requirements for cleanliness characteristics, 
the Administrator shall— 
"(I) consider technical constraints, economic benefits and 
costs to producers and industry, the price competitiveness of 
United States agricultural production, and levels of cleanliness 
met by major competing nations that export wheat, corn, 
barley, sorghum and soybeans; 
Regulations. 
"(H) promulgate regulations after providing for notice and an 
opportunity for public comment; and 
"(III) phase in any requirements for cleanliness characteris-
tics by incrementally decreasing the levels of the objectionable 
material permitted in shipments of grade number 3 or better 
wheat, corn, barley, sorghum and soybeans, 
"(ii) Following the phase-in period referred to in clause (i)(III), 
subsequent revision of cleanliness requirements shall be conducted 
consistent with the schedule of the Administrator for reviewing 
grain standards. 
"(C) If the Administrator determines to establish requirements for 
cleanliness characteristics under this section, the Administrator 
shall ensure that such requirements are fully implemented not later 
than 6 years after the date of enactment of this paragraph.". 
SEC. 2006. GRADE DETERMINING 
FACTORS RELATED TO PHYSICAL 
SOUNDNESS AND PURITY. 
Section 4 of the United States Grain Standards Act (7 U.S.C. 76) 
(as amended by section 2005) is further amended— 
(1) by redesignating subsection (c) £is subsection (d); and 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3931 
(2) by inserting after subsection Q)) the following new subsec-
tion: 
"(cXD In establishing standards under subsection (a) for each 
grain for which official grades are established, the Administrator 
shall establish for each such grain officieil grade-determining factors 
and factor limits that reflect the levels of soundness and purity that 
are consistent with end-use performance goals of the major foreign 
and domestic users of each such grain. Such factors and factor limits 
for grades number 3 and better shall provide users of such standards 
the best possible information from which to determine end-use 
product quality. The Administrator shall establish factors and factor 
limits that will provide that grain meeting the requirements for 
grades number 3 and better will perform in accordance with general 
trade expectations for the predominant uses of such grain. 
"(2) In establishing factors and factor limits under paragraph (1), 
the Administrator shall provide for notice and £in opportunity for 
public comment prior to making changes in the grad&determining 
factors and factor limits that shall be applicable under this section 
to grain that is officially graded.". 
SEC. 2007. TESTING FOR AFLATOXIN CONTAMINATION OF CORN SHIPPED 
IN FOREIGN COMMERCE. 
Section 5 of the United States Grain Standards Act (7 U.S.C. 77) is 
amended by inserting at the end the following new subsections: 
"(c) The Administrator is authorized and directed to require that 
all com exported from the United States be tested to ascertain 
whether it exceeds acceptable levels of aflatoxin contamination, 
unless the contract for export between the buyer and seller stipu-
lates that aflatoxin testing shall not be conducted.". 
SEC. 2008. PROHIBITION OF CONTAMINATION. 
Section 13 of the United States Grain Standards Act (7 U.S.C. 87b) 
is amended by adding at the end the following new subsection: 
"(e)(1) The Administrator may prohibit the contamination of 
sound and pure grain as a result of the introduction of— 
"(A) nongrain substances; 
"(B) grain unfit for ordinary commercial purposes; or 
"(C) grain that exceeds action limits established by the Food 
and Drug Administration or grain having residues that exceed 
the tolerance levels established by the Environmental Protec-
tion Agency. 
"(2) No prohibition imposed under this section shall be construed 
to restrict the marketing of any grain so long as the grade or 
condition of the grain is properly identified. 
"(3) Prior to taking action under this subsection, the Adminis- Regulations. 
trator shall promulgate regulations after providing for notice and an 
opportunity for public comment, that identify and define actions 
and conditions that are subject to prohibition. 
"(4) In no case shall the Administrator prohibit the blending of an 
entire grade of grain. 
"(5) In implementing paragraph (IXC), the Administrator shall Reports. 
report any prohibitions to other appropriate public health agen-
cies.". 
SEC. 2009. STANDARDIZING COMMERCIAL INSPECTIONS. 
The United States Grain Standards Act (7 U.S.C. 71) is amended 
by adding at the end the following new section: 
3»^194 O - 91 - 20 : QL 3 Part 5 
104 STAT. 3932 
PUBLIC LAW 101-624—NOV. 28, 1990 
7 u s e 87k. 
"SEC. 22. STANDARDIZING COMMERCIAL INSPECTIONS. 
"(a) TESTING EQUIPMENT.—TO promote greater uniformity in 
commercial grain inspection results, the Administrator may work in 
conjunction with the National Institute for Standards and Tech-
nology and the National Conference on Weights and Measures to— 
"(1) identify inspection instruments requiring standardization 
under subsection (b); 
"(2) establish performance criteria for commercial grain 
inspection instruments; 
"(3) develop a national program to approve grain inspection 
instruments for commercial inspection; and 
"(4) develop standard reference materials or other means 
necessary for calibration or testing of approved instruments. 
"(b) GENERAL INSPECTION PROCEDURES.—To ensure that producers 
are treated uniformly in delivering grain, the Administrator shall 
develop practical and cost-effective procedures for conducting 
commercial inspections of grain with respect to the application of 
quality factors, that result in premiums and discounts. The proce-
dures shall be made available to country elevators and others 
making first-point-of-delivery inspections. 
"(c) INSPECTION SERVICES AND INFORMATION.—To encourage the 
use of equipment and procedures developed in accordance with 
subsection (a) and (b), the Administrator shall provide for official 
inspection services by the Service, States, and official inspection 
agencies and provide information on the proper use of sampling and 
inspection equipment, application of the grain standards, and avail-
ability of official inspection services, including appeals under this 
Act. 
"(d) STANDARDIZED AFLATOXIN EQUIPMENT AND PROCEDURES.—The 
Administrator shall— 
"(1) establish uniform standards for testing equipment; and 
"(2) establish uniform testing procedures and sampling 
techniques; 
that may be used by processors, refiners, operators of grain elevators 
and terminals, and others to accurately detect the level of aflatoxin 
contamination of corn in the United States.". 
SEC. 2010. ENTRY QUALITY STANDARDS FOR ALL FARMER-OWNED 
RESERVE GRAINS. 
Section 110 of the Agricultural Act of 1949 (7 U.S.C. 1445e) is 
amended by adding at the end the following new subsection: 
"(k) In announcing the terms and conditions of the producer 
storage program under subsection (eXl), the Secretary shall review 
standards concerning the quality of grain that shall be sdlowed to be 
stored under the program, and such standards should encourage 
only quality grain, as determined by the Secretary, to be pledged as 
collateral for such loans. The Secretary shall review inspection, 
maintenance, and stock rotation requirements and take the nec-
essary steps to maintain the quality of such grain.". 
SEC. 2011. PRICE SUPPORT LOAN INCENTIVES FOR QUALITY GRAIN. 
Section 403(a) of the Agricultural Act of 1949 (7 U.S.C. 1423) (as 
emiended by section 1128) is further amended by adding at the end 
thereof the following new sentence: "Beginning with the 1991 crops 
of wheat, feed grains, and soybeans for which price support is 
provided under this Act, the Secretary shall establish premiums and 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3933 
discounts related to cleanliness factors in addition to any other 
premiums or discounts related to quality.". 
SEC. 2012. QUALITY REQUIREMENTS FOR COMMODITY CREDIT CORPORA-
TION-OWNED GRAIN. 
The Agricultural Act of 1949 is amended by inserting after section 
407 (7 U.S.C. 1427) the following new section: 
"SEC. 407A. QUALITY REQUIREMENTS FOR COMMODITY CREDIT COR- 
7 USC 1427-1. 
PORATION OWNED GRAIN. 
"(a) ESTABLISHMENT OF MINIMUM STANDARDS.—Notwithstanding 
any other provision of law, the Secretary shall establish minimum 
quality stmidards that shall apply to grain that is deposited for 
storage for the account of the Commodity Credit Corporation. In 
establishing such standards, the Secretary shall take into consider-
ation factors related to the ability of grain to withstand storage and 
assurance of acceptable end-use performance. 
"O?) INSPECTION OF GRAIN ACQUISITIONS.—The Commodity Credit 
Corporation shall utilize Federal Grain Inspection Service approved 
procedures to inspect and evaluate the condition of the grain it 
acquires from producers. In no case shall this section require the use 
of an official inspection unless the producer so requests.'. 
SEC. 2013. SEED VARIETY INFORMATION AND SURVEY. 
7 USC 1593a. 
(a) INFORMATION.— 
(1) IN GENERAL.—Grain submitted for public testing shall be 
evaluated 
for 
selected 
specific 
Eigronomic 
performance 
characteristics and intrinsic end-use performance characteris-
tics, as determined by the Secretary, with the results of the 
evaluations made available to the Secretary. 
(2) DISSEMINATION OF INFORMATION.—The Secretary shall 
disseminate varietal performance information obtained under 
paragraph (1) to plant breeders, producers, and end users. 
Qy) SURVEY.—The Secretary shall periodically conduct, compile, 
and publish a survey of grain varieties commercially produced in 
the United States. 
(c) ANALYSIS OP VARIETY SURVEY DATA.—The Secretary shall ana-
lyze the variety surveys conducted under subsection (h) in conjunc-
tion with available applied research information on intrinsic quality 
characteristics of the varieties, to evaluate general intrinsic crop 
quality characteristics and trends in production related to intrinsic 
quality characteristics. This information shall be disseminated as 
required by subsection (aX2). 
SEC. 2014. AUTHORITY TO ASSIST FARMERS AND ELEVATOR OPERATORS. 
7 USC 1622a. 
The Secretary may provide technical assistance (including 
information on such financial assistance as may be available) to 
grain producers and elevator operators to assist such producers and 
operators in installing or improving grain cleaning, drjdng or stor-
age equipment. 
SEC. 2015. SENSE OF CONGRESS CONCERNING TESTS FOR PURITY. 
(a) FINDING.—Congress finds that consumers, both international 
and domestic, are aware of, and concerned with, the purity of their 
food supply. 
Oa) SENSE OF CONGRESS.—It is the sense of Congress that in order 
to assure buyers of the purity of United States grain, the Federal 
Grain Inspection Service should, as soon as technically and economi-
104 STAT. 3934 
PUBLIC LAW 101-624—NOV. 28, 1990 
cally practical, develop tests of mycotoxins and pesticide residues 
and make such tests available on such impurities in conjunction 
with official grain inspections established under the United States 
Grain Standards Act (7 U.S.C. 71 et seq.). 
SEC. 2016. SENSE OF CONGRESS CONCERNING COOPERATIVE ENFORCE-
MENT OF FEDERAL GRAIN PURITY REQUIREMENTS. 
(a) FINDINGS.—Congress finds that the laws and regulations 
related to the purity and safety of grain that are administered by 
the Food and Drug Administration and the Environmental Protec-
tion Agency serve to insure the integrity of the United States as a 
supplier of wholesome grain. 
(b) SENSE OF CONGRESS.—It is the sense of Congress that Federal 
agencies that are responsible for enforcing the laws and regulations 
relating to the quality, purity, and safety of United States grain 
exported and marketed domestically should seek assistance from 
and cooperate with the Federal Grain Inspection Service in the 
enforcement of the laws and regulations referred to in subsection 
(a). 
SEC. 2017. SENSE OF CONGRESS CONCERNING END-USE PERFORMANCE 
RESEARCH. 
(a) FINDINGS.—Congress finds that— 
(1) research concerning the end-use performance of grain 
conducted by the Agricultural Research Service and land-grant 
universities is critical to improving the quality and competitive-
ness of United States grains in domestic and world markets; 
(2) the work done by the Agricultural Research Service wheat 
quality laboratories has proven valuable to improving the 
understanding of individuals concerning the relationships 
between the physical and chemical properties of wheat and the 
performance of wheat in milling and baking; and 
(3) research conducted by the Agricultural Research Service 
and land-grant universities concerning the composition of corn 
and soybean varieties has proven valuable to feed and food 
users. 
(b) SENSE OF CONGRESS.—It is the sense of Congress that the 
Secretary, and in particular the Agricultural Research Service and 
land-grant universities, should adjust their financial priorities to 
place increased emphasis on grain variety eveduation and the devel-
opment of objective tests for the end-use properties of grains. 
SEC. 2018. SENSE OF CONGRESS CONCERNING COOPERATION IN OBJEC-
TIVE TESTING. 
(a) FINDING.—Congress finds that the close cooperative relation-
ship that exists between the Federal Grain Inspection Service, the 
Agricultural Research Service, and land-grant universities has 
proven highly beneficial in identifying grain quality related 
characteristics, developing tests, and designing grain standards. 
(b) SENSE OF CONGRESS.—It is the sense of Congress that the 
cooperative efforts described in subsection (a), including the sharing 
* 
of funds and personnel, should be expanded, and that the Federal 
Grain Inspection Service should continue to utilize the research 
capabilities of the Agricultural Research Service and the land-grant 
universities in these efforts. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3935 
TITLE XXI—ORGANIC CERTIFICATION 
SEC. 2101. SHORT TITLE. 
This title may be cited as the "Organic Foods Production Act of 
1990". 
SEC. 2102. PURPOSES. 
It is the purpose of this title— 
(1) to establish national standards governing the marketing of 
certain agricultural products as organically produced products; 
(2) to assure consumers that organically produced products 
meet a consistent standard; and 
(8) to facilitate interstate commerce in fresh and processed 
food that is organically produced. 
SEC. 2103. DEFINITIONS. 
As used in this title: 
(1) AGRICULTURAL PRODUCT.—The term "agricultural product" 
means any eigricultural commodity or product, whether raw or 
processed, including any commodity or product derived from 
livestock that is marketed in the United States for human or 
livestock consumption. 
(2) BOTANICAL PESTICIDES.—The term "botanical pesticides" 
means natural pesticides derived from plants. 
(3) CERTIFYING AGENT.—The term "certifying agent" means 
the chief executive officer of a State or, in the case of a State 
that provides for the Statewide election of an official to be 
responsible solely for the administration of the agricultural 
operations of the State, such official, and any person (including 
private entities) who is accredited by the Secretary as a certify-
ing agent for the purpose of certifying a farm or handling 
operation as a certified organic farm or handling operation in 
accordance with this title. 
(4) CERTIFIED ORGANIC FARM.—The term "certified organic 
farm" means a farm, or portion of a farm, or site where 
agricultural products or livestock are produced, that is certified 
by the certifying agent under this title as utilizing a system of 
organic farming £is described by this title. 
(5) CERTIFIED ORGANIC HANDLING OPERATION.—The term "cer-
tified organic handling operation" means any operation, or 
portion of any handling operation, that is certified by the 
certifying agent under this title as utilizing a system of organic 
handling as described under this title. 
(6) CROP YEAR.—The term "crop year" means the normal 
growing season for a crop as determined by the Secretary. 
(7) GOVERNING STATE OFFICIAL.—The term "governing State 
official" means the chief executive official of a State or, in the 
case of a State that provides for the Statewide election of an 
official to be responsible solely for the administration of the 
agricultural operations of the State, such official, who admin-
isters an organic certification program under this title. 
(8) HANDLE.—The term "handle" means to sell, process or 
package agricultural products. 
(9) HANDLER.—The term "handler" means any person en-
gaged in the business of handling agricultural products, except 
Organic Foods 
Production Act 
of 1990. 
Labeling. 
7 use 6501 note. 
7 use 6501. 
7 use 6502. 
104 STAT. 3936 
PUBLIC LAW 101-624—NOV. 28, 1990 
such term shall not include final retailers of agricultural prod-
ucts that do not process agricultural products. 
(10) HANDUNG OPERATION.—The term "handling operation" 
means any operation or portion of an operation (except final 
retailers of agricultural products that do not process agricul-
tural products) that— 
(A) receives or otherwise acquires agricultural products; 
and 
(B) processes, packages, or stores such products. 
(11) LIVESTOCK.—The term "livestock" means any cattle, 
sheep, goats, swine, poultry, equine animals used for food or in 
the production of food, fish used for food, wild or domesticated 
game, or other nonplant life. 
(12) NATIONAL UST.—The term "National List" means a list of 
approved and prohibited substances as provided for in section 
2118. 
(13) ORGANIC PLAN.—The term "organic plan" means a plan 
of management of an organic farming or handling operation 
that has been agreed to by the producer or handler and the 
certifying agent and that includes written plans concerning all 
aspects of agricultural production or handling described in this 
title including crop rotation and other practices as required 
under this title. 
(14) ORGANICALLY PRODUCED.—The term "organically pro-
duced" means an agricultural product that is produced and 
handled in accordance with this title. 
(15) PERSON.—The term "person" means an individual, group 
of individuals, corporation, association, organization, coopera-
tive, or other entity. 
(16) PESTICIDE.—The term "pesticide" means any substance 
which alone, in chemical combination, or in any formulation 
with one or more substances, is defined as a pesticide in the 
Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. 
136 et seq.). 
(17) PROCESSING.—The term "processing" means cooking, 
baking, heating, drying, mixing, grinding, churning, separating, 
extracting, cutting, fermenting, eviscerating, preserving, dehy-
drating, freezing, or otherwise manufacturing, and includes the 
packaging, canning, jarring, or otherwise enclosing food in a 
container. 
(18) PRODUCER.—The term "producer" means a person who 
engages in the business of growing or producing food or feed. 
(19) SECRETARY.—The term "Secretary" means the Secretary 
of Agriculture. 
(20) STATE 
ORGANIC CERTIFICATION PROGRAM.—The term 
"State organic certification program" means a program that 
meets the requirements of section 2107, is approved by the 
Secretary, and that is designed to ensure that a product that is 
sold or labeled as "organically produced" under this title is 
produced and handled using organic methods. 
(21) SYNTHETIC.—The term "sjmthetic" means a substance 
that is formulated or manufactured by a chemical process or by 
a process that chemically changes a substance extracted from 
naturally occurring plant, animal, or mineral sources, except 
that such term shall not apply to substances created by natu-
rally occurring biological processes. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3937 
SEC. 2104. NATIONAL ORGANIC PRODUCTION PROGRAM. 
7 USC 6503. 
(a) IN GENERAL.—The Secretary shall establish an organic certifi-
cation program for producers and handlers of agricultural products 
that have been produced using organic methods as provided for in 
this title. 
(b) STATE PROGRAM.—In establishing the program under subsec-
tion (a), the Secretary shall permit each State to implement a State 
organic certification program for producers and handlers of agricul-
tural products that have been produced using organic methods as 
provided for in this title. 
(c) CONSULTATION.—In developing the program under subsection 
(a), and the National List under section 2118, the Secretary shall 
consult with the National Organic Standards Board established 
under section 2119. 
(d) CERTIFICATION.—The Secretary shall implement the program 
established under subsection (a) through certifying agents. Such 
certifying agents may certify a farm or handling operation that 
meets the requirements of this title and the requirements of the 
organic certification program of the State (if applicable) as an 
organically certified farm or handling operation. 
SEC. 2105. NATIONAL STANDARDS FOR ORGANIC PRODUCTION. 
7 USC 6504. 
To be sold or labeled as an organically produced agricultural 
product under this title, an gigricultural product shall— 
(1) have been produced and handled without the use of sjoi-
thetic chemicals, except as otherwise provided in this title; 
(2) except as otherwise provided in this title and excluding 
livestock, not be produced on land to which any prohibited 
substances, including synthetic chemicals, have been applied 
during the 3 years immediately preceding the harvest of the 
agricultural products. 
(3) be produced and handled in compliance with an organic 
plan agreed to by the producer and handler of such product and 
the certifying agent. 
SEC. 2106. COMPLIANCE REQUIREMENTS. 
7 uSC 6505. 
(a) DOMESTIC PRODUCTS.— 
(1) IN GENERAL.—On or after October 1,1993— 
(A) a person may sell or label an agricultural product as 
organically produced only if such product is produced and 
handled in accordance with this title; and 
(B) no person may affix a label to, or provide other 
market information concerning, an ^ricultural product if 
such label or information implies, directly or indirectly, 
that such product is produced and handled using organic 
methods, except in accordemce with this title. 
(2) USDA STANDARDS AND SEAL.—A label affixed, or other 
market information provided, in accordance with paragraph (1) 
may indicate that the agricultural product meets Department oif 
Agriculture standards for organic production and may incor-
porate the Department of Agriculture seal. 
(b) IMPORTED PRODUCTS.—Imported agricultural products may be 
sold or labeled as organically produced if the Secretary determines 
that such products have been produced and handled under an 
organic certification progreim that provides safeguards and guide-
lines governing the production and handling of such products that 
are at least equivalent to the requirements of this title. 
104 STAT. 3938 
PUBLIC LAW 101-624—NOV. 28, 1990 
(c) EXEMPTIONS FOR PROCESSED FOOD.—Subsection (a) shall not 
apply to agricultural products that— 
(1) contain at least 50 percent organically produced ingredi-
ents by weight, excluding water and salt, to the extent that the 
Secretary, in consultation with the National Organic Standards 
Board and the Secretary of Health and Human Services, has 
determined to permit the word "organic" to be used on the 
principal display panel of such products only for the purpose of 
describing the organically produced ingredients; or 
(2) contain less than 50 percent organically produced ingredi-
ents by weight, excluding water and salt, to the extent that the 
Secretary, in consultation with the National Organic Standards 
Board and the Secretary of Health and Human Services, has 
determined to permit the word "organic" to appear on the 
ingredient listing panel to describe those ingredients that are 
organically produced in accordance with this title. 
(d) SMALL FARMER EXEMPTION.—Subsection (a)(1) shall not apply 
to persons who sell no more than $5,000 annually in value of 
agricultural products. 
7 u s e 6506. 
SEC. 2107. GENERAL REQUIREMENTS. 
(a) IN GENERAL.—A program established under this title shall— 
(1) provide that an agricultural product to be sold or labeled 
as organically produced must— 
(A) be produced only on certified organic farms and han-
dled only through certified organic handling operations in 
accordance with this title; and 
(B) be produced and handled in accordance with such 
program; 
(2) require that producers and handlers desiring to participate 
under such program establish an organic plan under section 
2114; 
(3) provide for procedures that allow producers and handlers 
to appeal an adverse administrative determination under this 
title; 
(4) require each certified organic farm or each certified or-
ganic handling operation to certify to the Secretary, the govern-
ing State official (if applicable), and the certifying agent on an 
annual basis, that such farm or handler has not produced or 
handled any agricultural product sold or labeled as organically 
produced except in accordance with this title; 
(5) provide for annual on-site inspection by the certif3dng 
agent of each farm and handling operation that has been 
certified under this title; 
(6) require periodic residue testing by certifying agents of 
agricultural products that have been produced on certified or-
ganic farms and handled through certified organic handling 
operations to determine whether such products contain any 
pesticide or other nonorganic residue or natural toxicants and 
to require certifying agents, to the extent that such agents are 
aware of a violation of applicable laws relating to food safety, to 
report such violation to the appropriate health agencies; 
(7) provide for appropriate and adequate enforcement proce-
dures, as determined by the Secretary to be necessary and 
consistent with this title; 
(8) protect against conflict-of-interest as specified under sec-
tion 2116(h); 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3939 
(9) provide for public access to certification documents and 
laboratory Einalyses that pertain to certification; 
(10) provide for the collection of reasonable fees from produc-
ers, certifying agents and handlers who participate in such 
program; and 
(11) require such other terms and conditions £is may be deter-
mined by the Secretary to be necessary. 
(b) DISCRETIONARY REQUIREMENTS.—An organic certification pro-
gram established under this title may— 
(1) provide for the certification of an entire farm or handling 
operation or specific fields of a farm or parts of a handling 
operation i
f
— 
(A) in the case of a farm or field, the area to be certified 
h£is distinct, defined boundaries and buffer zones separating 
the land being operated through the use of orgsinic methods 
from land that is not being operated through the use of 
such methods; 
(B) the operators of such farm or handling operation 
maintain records of all orgeinic operations separate from 
records relating to other operations and make such records 
available at all times for inspection by the Secretary, the 
certifying agent, and the governing State official; and 
(C) appropriate 
physical facilities, 
machinery, 
and 
management practices are established to prevent the 
possibility of a mixing of organic and nonorganic products 
or a penetration of prohibited chemicals or other substances 
on the certified area; and 
(2) provide for reasonable exemptions from specific require-
ments of this title (except the provisions of section 2112) with 
respect to agricultural products produced on certified organic 
farms if such farms are subject to a Federal or State emergency 
pest or disease treatment program. 
(c) STATE PROGRAM.—A State organic certification program ap-
proved under this title may contain additional guidelines governing 
the production or handling of products sold or labeled as organically 
produced in such State as required in section 2108. 
SEC. 2108. STATE ORGANIC CERTIFICATION PROGRAM. 
7 USC 6507. 
(a) IN GENERAL.—The governing State official may prepare and 
submit a plan for the establishment of a State organic certification 
program to the Secretary for approval. A State organic certification 
program must meet the requirements of this title to be approved by 
the Secretary. 
(b) ADDITIONAL REQUIREMENTS.— 
(1) AUTHORITY.—A State organic certification program estab-
lished under subsection (a) may contain more restrictive 
requirements governing the organic certification of farms and 
handling operations and the production and handling of agricul-
tural products that are to be sold or labeled as organically 
produced under this title than are contained in the program 
established by the Secretary. 
(2) CONTENT.—Any additional requirements established under 
par£igraph (1) shall— 
(A) further the purposes of this title; 
(B) not be inconsistent with this title; 
104 STAT. 3940 
PUBLIC LAW 101-624—NOV. 28, 1990 
(C) not be discriminatory towards agricultural commod-
ities organically produced in other States in accordance 
with this title; and 
(D) not become effective until approved by the Secretary, 
(c) REVIEW AND OTHER DETERMINATIONS.— 
(1) SUBSEQUENT REVIEW.—The Secretary shall review State 
organic certification programs not less than once during each 5-
year period following the date of the approval of such programs. 
(2) CHANGES IN PROGRAM.—The governing State official, prior 
to implementing any substantive change to programs approved 
under this subsection, shall submit such change to the Secretary 
for approval. 
(3) TIME FOR DETERMINATION.—The Secretary shall make a 
determination concerning any plan, proposed change to a pro-
gram, or a review of a program not later than 6 months after 
receipt of such plan, such proposed change, or the initiation of 
such review. 
7 use 6508. 
SEC. 2109. PROHIBITED CROP PRODUCTION PRACTICES AND MATERIALS. 
(a) SEED, SEEDUNGS AND PLANTING PRACTICES.—For a farm to be 
certified under this title, producers on such farm shall not apply 
materials to, or engage in practices on, seeds or seedlings that are 
contrary to, or inconsistent with, the applicable organic certification 
program. 
(b) SOIL AMENDMENTS.—For a farm to be certified under this title, 
producers on such farm shall not— 
(1) use any fertilizers containing synthetic ingredients or any 
commercially blended fertilizers containing materials prohib-
ited under this title or under the applicable State organic 
certification program; or 
(2) use as a source of nitrogen: phosphorous, lime, potash, or 
any materials that are inconsistent with the applicable organic 
certification program. 
(c) CROP MANAGEMENT.—For a farm to be certified under this 
title, producers on such farm shall not— 
(1) use natural poisons such as arsenic or lead salts that have 
long-term effects and persist in the environment, as determined 
by the applicable governing State official or the Secretary; 
(2) use plastic mulches, unless such mulches are removed at 
the end of each growing or harvest season; or 
(3) use transplants that are treated with any synthetic or 
prohibited material. 
7 use 6509. 
SEC. 2110. ANIMAL PRODUCTION PRACTICES AND MATERIALS. 
(a) IN GENERAL.—Any livestock that is to be slaughtered and sold 
or labeled as organically produced shall be raised in accordance with 
this title. 
(b) BREEDER STOCK.—Breeder stock may be purchased from any 
source if such stock is not in the last third of gestation. 
(c) PRACTICES.—For a farm to be certified under this title as an 
organic farm with respect to the livestock produced by such farm, 
producers on such farm— 
(1) shall feed such livestock organically produced feed that 
meets the requirements of this title; 
(2) shall not use the following feed— 
(A) plgistic pellets for roughage; 
(B) manure refeeding; or 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3941 
(C) feed formulas containing urea; and 
(3) shall not use growth promoters and hormones on such 
livestock, whether implanted, ingested, or injected, including 
antibiotics and S3nithetic trace elements used to stimulate 
growth or production of such livestock. 
(d) HEALTH CARE.— 
(1) PROHIBITED PRACTICES.—For a farm to be certified under 
this title as an organic farm with respect to the livestock 
produced by such farm, producers on such farm shall not— 
(A) use subtherapeutic doses of antibiotics; 
(B) use sjrnthetic internal paraciticides on a routine basis; 
or 
(C) administer medication, other than vaccinations, in the 
absence of illness. 
(2) STANDARDS.—The National Organic Standards Board shall 
recommend to the Secretary standards in addition to those in 
pargigraph (1) for the care of livestock to ensure that such 
livestock is organically produced. 
(e) ADDITIONAL GUIDELINES.— 
(1) POULTRY.—With the exception of day old poultry, all poul-
try from which meat or eggs will be sold or labeled as organi-
cally produced shall be raised and handled in accordance with 
this title prior to and during the period in which such meat or 
eggs are sold. 
(2) DAIRY LIVESTOCK.—A dairy animal from which milk or 
milk products will be sold or labeled as organically produced 
shall be raised and handled in accordance with this title for not 
less than the 12-month period immediately prior to the sale of 
such milk and milk products. 
(f) LIVESTOCK IDENTIFICATION.— 
(1) IN GENERAL.—For a farm to be certified under this title as Records. 
£in organic farm with respect to the livestock produced by such 
farm, producers on such farm shall keep adequate records and 
maintain a detailed, verifiable audit trail so that each emiimal 
(or in the case of poultry, each flock) can be traced back to such 
farm. 
(2) RECORDS.—In order to carry out paragraph (1), each pro-
ducer shall keep accurate records on each animal (or in the case 
of poultry, each flock) including— 
(A) amounts and sources of all medications administered; 
and 
(B) all feeds and feed supplements bought and fed. 
(h) NOTICE AND PUBUC COMMENT.—The Secretary shall hold Regulations. 
public hearings and shall develop detailed regulations, with notice 
and public comment, to guide the implementation of the standards 
for livestock products provided under this section. 
SEC. 2111. HANDLING. 
7 USC 6510. 
(a) IN GENERAL.—For a hgindling operation to be certified under 
this title, each person on such handling operation shall not, with 
respect to any agricultural product covered by this title— 
(1) add any synthetic ingredient during the processing or any 
post harvest handling of the product; 
(2) add any ingredient known to contain levels of nitrates, 
heavy metals, or toxic residues in excess of those permitted by 
the applicable organic certification program; 
(3) add any sulfites, nitrates, or nitrites; 
104 STAT. 3942 
PUBLIC LAW 101-624—NOV. 28, 1990 
(4) add any ingredients that are not organically produced in 
accordance with this title and the applicable organic certifi-
cation program, unless such ingredients are included on the 
National List and represent not more than 5 percent of the 
weight of the total finished product (excluding salt and water); 
(5) use any packaging materials, storage containers or bins 
that contain synthetic fungicides, preservatives, or fumigants; 
(6) use any bag or container that had previously been in 
contact with any substance in such a manner as to compromise 
the organic quality of such product; or 
(7) use, in such product water that does not meet all Safe 
Drinking Water Act requirements. 
(b) MEAT.—For a farm or handling operation to be organically 
certified under this title, producers on such farm or persons on such 
handling operation shall ensure that organically produced meat 
does not come in contact with nonorganically produced meat. 
7 use 6511. 
SEC. 2112. ADDITIONAL GUIDELINES. 
(a) IN GENERAL.—The Secretary, the applicable governing State 
official, and the certifying agent shall utilize a system of residue 
testing to test products sold or labeled as organically produced 
under this title to assist in the enforcement of this title. 
(b) PRE-HARVEST TESTING.—The Secretary, the applicable govern-
ing State official, or the certif3dng agent may require preharvest 
tissue testing of any crop grown on soil suspected of harboring 
contaminants. 
(c) COMPLIANCE REVIEW.— 
(1) INSPECTION.—If the Secretary, the applicable governing 
State official, or the certifying agent determines that an agricul-
tural product sold or labeled as organically produced under this 
title contains any detectable pesticide or other non-organic 
residue or prohibited natural substance the Secretary, the ap-
plicable governing State official, or the certifying agent shgdl 
conduct an investigation to determine if the organic certifi-
cation program has been violated, and may require the producer 
or handler of such product to prove that any prohibited sub-
stance was not applied to such product. 
(2) REMOVAL OF ORGANIC LABEL.—If, as determined by the 
Secretary, the applicable governing State official, or the certify-
ing agent, the investigation conducted under paragraph (1) 
indicates that the residue is— 
(A) the result of intentional application of a prohibited 
substance; or 
(B) present at levels that are greater than unavoidable 
residual environmental contamination as prescribed by the 
Secretary or the applicable governing State official in con-
sultation with the appropriate environmental regulatory 
agencies; 
such agricultural product shall not be sold or labeled as organi-
cally produced under this title. 
(d) RECORDKEEPING REQUIREMENTS.—Producers who operate a cer-
tified organic farm or handling operation under this title shall 
maintain records for 5 years concerning the production or handling 
of agricultural products sold or labeled as organically produced 
under this title, including— 
(1) a detailed history of substances applied to fields or agricul-
tural products; and 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3943 
(2) the names and addresses of persons who applied such 
sulastances, the dates, the rate, and method of application of 
such substances. 
SEC. 2113. OTHER PRODUCTION AND HANDLING PRACTICES. 
7 USC 6512. 
If a production or handling practice is not prohibited or otherwise 
restricted under this title, such practice shall be permitted unless it 
is determined that such practice would be inconsistent with the 
applicable organic certification program. 
SEC. 2114. ORGANIC PLAN. 
7 USC 6513. 
(a) IN GENERAL.—A producer or handler seeking certification 
under this title shall submit an organic plan to the certifying agent 
and the State organic certification program (if applicable), and such 
plan shall be reviewed by the certifjdng agent who shall determine 
if such plan meets the requirements of the programs. 
(b) CROP PRODUCTION FARM PLAN.— 
(1) SOIL FERTILITY.—An organic plan shall contain provisions 
designed to foster soil fertility, primarily through the manage-
ment of the organic content of the soil through proper tillage, 
crop rotation, and manuring. 
(2) MANURING.— 
(A) INCLUSION IN ORGANIC PLAN.—An organic plan shall 
contain terms and conditions that regulate the application 
of manure to crops. 
(B) APPLICATION OF MANURE.—Such organic plan may 
provide for the application of raw memure only to— 
(i) any green manure crop; 
(ii) any perennial crop; 
(iii) any crop not for human consumption; and 
(iv) any crop for human consumption, if such crop is 
harvested after a reasonable period of time determined 
by the certifying agent to ensure the safety of such 
crop, after the most recent application of raw manure, 
but in no event shall such period be less than 60 days 
after such application. 
(C) CONTAMINATION BY MANURE.—Such organic plan shall 
prohibit raw manure from being applied to any crop in a 
way that significantly contributes to water contamination 
by nitrates or bacteria. 
(c) LIVESTOCK PLAN.—An organic livestock plan shall contain 
provisions designed to foster the organic production of livestock 
consistent with the purposes of this title. 
(d) MIXED CROP LIVESTOCK PRODUCTION.—An organic plan may 
encompass both the crop production and livestock production 
requirements in subsections 0)) and (c) if both activities are con-
ducted by the same producer. 
(e) HANDUNG PLAN.—An organic handling plan shall contain 
provisions designed to ensure that agricultural products that are 
sold or labeled as organically produced are produced and handled in 
a msmner that is consistent with the purposes of this title. 
(f) MANAGEMENT OF WILD CROPS.—An organic plan for the 
harvesting of wild crops shall— 
(1) designate the area from which the wild crop will be 
gathered or harvested; 
(2) include a 3 year history of the management of the area 
showing that no prohibited substances have been applied; 
104 STAT. 3944 
PUBLIC LAW 101-624—NOV. 28, 1990 
(3) include a plan for the harvesting or gathering of the wild 
crops gissuring that such harvesting or gathering will not be 
destructive to the environment and will sustain the growth and 
production of the wild crop; and 
(4) include provisions that no prohibited substances will be 
applied by the producer. 
(g) LIMITATION ON CONTENT OF PLAN.—An organic plan shall not 
include any production or handling practices that are inconsistent 
with this title. 
7 use 6514. 
SEC. 2115. ACCREDITATION PROGRAM. 
(a) IN GENERAL.—The Secretary shall establish and implement a 
program to accredit a governing State official, and any private 
person, that meets the requirements of this section as a certif3dng 
agent for the purpose of certifying a farm or handling operation as a 
certified organic farm or handling operation. 
(b) REQUIREMENTS.—To be accredited as a certifying agent under 
this section, a governing State official or private person shall— 
(1) prepare and submit, to the Secretary, an application for 
such accreditation; 
(2) have sufficient expertise in organic farming and handling 
techniques as determined by the Secretary; and 
(3) comply with the requirements of this section and section 
2116. 
(c) DURATION OF DESIGNATION.—An accreditation made under this 
section shall be for a period of not to exceed 5 years, as determined 
appropriate by the Secretary, and may be renewed. 
7 use 6515. 
SEC. 2116. REQUIREMENTS OF CERTIFYING AGENTS. 
(a) ABILITY TO IMPLEMENT REQUIREMENTS.—To be accredited as a 
certifying agent under section 2115, a governing State official or a 
person shall be able to fully implement the applicable organic 
certification program established under this title. 
Ob) INSPECTORS.—Any certifying agent shall employ a sufficient 
number of inspectors to implement the applicable organic certifi-
cation program established under this title, as determined by the 
Secretary. 
(c) RECORDKEEPING.— 
(1) MAINTENANCE OF RECORDS.—Any certifjdng agent shall 
maintain all records concerning its activities under this title for 
a period of not less than 10 years. 
(2) ACCESS FOR SECRETARY.—Any certifying agent shall allow 
representatives of the Secretary and the governing State official 
access to any and all records concerning the certifying agent's 
activities under this title. 
(3) TRANSFERENCE OF RECORDS.—If any private person that 
was certified under this title is dissolved or loses its accredita-
tion, all records or copies of records concerning such person's 
activities under this title shall be transferred to the Secretary 
and made available to the applicable governing State official. 
(d) AGREEMENT.—Any certifying agent shall enter into an agree-
ment with the Secretary under which such agent shall— 
(1) agree to carry out the provisions of this title; and 
(2) agree to such other terms and conditions as the Secretary 
determines appropriate. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3945 
(e) PRIVATE CERTIFYING AGENT AGREEMENT.—Any certifying agent 
that is a private person shall, in addition to the gigreement required 
in subsection (d)— 
(1) agree to hold the Secretary harmless for any failure on the 
part of the certifying agent to carry out the provisions of this 
title; and 
(2) furnish reasonable security, in an amount determined by 
the Secretary, for the purpose of protecting the rights of partici-
pants in the applicable organic certification program estab-
lished under this title. 
(f) CoMPUANCE WITH PROGRAM.—Any certifying agent shall fully 
comply with the terms and conditions of the applicable organic 
certification program implemented under this title. 
(g) CONFIDENTIALITY.—Except as provided in section 2107(a)(9), any 
certifying agent shall maintain strict confidentiality with respect to 
its clients under the applicable organic certification program and 
may not disclose to third parties (with the exception of the Secretary 
or the applicable governing State official) any business related 
information concerning such client obtained while implementing 
this title. 
(h) CONFLICT OF INTEREST.—Any certifying agent shall not— 
(1) carry out any inspections of any operation in which such 
certifying agent, or employee of such certifying agent has, or 
has had, a commercial interest, including the provision of 
consultancy services; 
(2) accept payment, gifts, or favors of any kind from the 
business inspected other than prescribed fees; or 
(3) provide advice concerning organic practices or techniques 
for a fee, other than fees established under such program. 
(i) ADMINISTRATOR.—A certifying agent that is a private person 
shall nominate the individual who controls the day-to-day operation 
of the agent. 
(j) Loss OF ACCREDITATION.— 
(1) NONCOMPLIANCE.—If the Secretary or the governing State 
official (if applicable) determines that a certifying agent is not 
properly adhering to the provisions of this title, the Secretary or 
such governing State official may suspend such certifying 
agent's accreditation. 
(2) EFFECT ON CERTIFIED OPERATIONS.—If the accreditation of a 
certifying agent is suspended under paragraph (1), the Secretary 
or the governing State official (if applicable) shall promptly 
determine whether farming or handling operations certified by 
certifying such agent may retain their organic certification. 
SEC. 2117. PEER REVIEW OF CERTIFYING AGENTS. 
7 USC 6516. 
(a) PEER REVIEW.—In determining whether to approve an applica- Reports. 
tion for accreditation submitted under section 2115, the Secretary 
shall consider a report concerning such applicant that shall be 
prepared by a peer review panel established under subsection (b). 
(b) PEER REVIEW PANEL.—To assist the Secretary in evaluating 
applications under section 2115, the Secretary may establish a panel 
of not less than three persons who have expertise in organic farming 
and handling methods, to evaluate the State governing official or 
private person that is seeking accreditation as a certifying agent 
under such section. Not less than two members of such panel shall 
be persons who are not employees of the Department of Agriculture 
or of the applicable State government. 
104 STAT. 3946 
PUBLIC LAW 101-624—NOV. 28, 1990 
7 u s e 6517. 
SEC. 2118. NATIONAL LIST. 
(a) IN GENERAL.—The Secretary shall establish a National List of 
approved and prohibited substances that shall be included in the 
standards for organic production and handling established under 
this title in order for such products to be sold or labeled as organi-
cally produced under this title. 
(b) CJoNTENT OF LiST.—The list established under subsection (a) 
shall contain an itemization, by specific use or application, of each 
synthetic substance permitted under subsection (cXl) or each natu-
ral substance prohibited under subsection (cX2). 
(c) GUIDELINES FOR PROHIBITIONS OR EXEMPTIONS.— 
(1) EXEMPTION FOR PROHIBITED SUBSTANCES.—The National 
List may provide for the use of substances in an organic farming 
or handling operation that are otherwise prohibited under this 
title only if— 
(A) the Secretary determines, in consultation with the 
Secretary of Health and Human Services and the Adminis-
trator of the Environmental Protection Agency, that the 
use of such substances— 
(i) would not be harmful to human health or the 
environment; 
(ii) is necessary to the production or handling of the 
agricultural product because of the unavailability of 
wholly natural substitute products; and 
(iii) is consistent with organic farming and handling; 
(B) the substance— 
(i) is used in production and contains an active syn-
thetic ingredient in the following categories: copper 
and sulfur compounds; toxins derived from bacteria; 
pheromones, soaps, horticultural oils, fish emulsions, 
treated 
seed, 
vitamins 
and 
minerals; 
livestock 
paraciticides and medicines and production aids includ-
ing netting, tree wraps and seals, insect traps, sticky 
barriers, row covers, and equipment cleansers; 
(ii) is used in production and contains synthetic inert 
ingredients that are not classified by the Administrator 
of the Environmental Protection Agency as inerts of 
toxicological concern; or 
(iii) is used in handling and is non-sjoithetic but is 
not organically produced; and 
(C) the specific exemption is developed using the proce-
dures described in subsection (d). 
(2) PROHIBITION ON THE USE OF SPECIFIC NATURAL SUB-
STANCES.—The National List may prohibit the use of specific 
natural substances in an organic farming or handling operation 
that are otherwise allowed under this title only if— 
(A) the Secretary determines, in consultation with the 
Secretary of Health and Human Services and the Adminis-
trator of the Environmental Protection Agency, that the 
use of such substances— 
(i) would be harmful to human health or the environ-
ment; and 
(ii) is inconsistent with organic farming or handling, 
and the purposes of this title; and 
(B) the specific prohibition is developed using the proce-
dures specified in subsection (d). 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3947 
(d) PROCEDURE FOR ESTABLISHING NATIONAL LIST.— 
(1) IN GENERAL.—The National List established by the Sec-
retary shall be based upon a proposed national list or proposed 
amendments to the National List developed by the National 
Organic Standards Board. 
(2) No ADDITIONS.—The Secretary may not include exemptions 
for the use of specific synthetic substances in the National List 
other than those exemptions contained in the Proposed 
National List or Proposed Amendments to the National List. 
(3) 
PROHIBITED 
SUBSTANCES.—In no instance shall 
the 
National List include any substance, the presence of which in 
food has been prohibited by Federal regulatory action. 
(4) NOTICE AND COMMENT.—Before establishing the National 
List or before making any amendments to the National List, the 
Secretary shall publish the Proposed National List or any Pro-
posed Amendments to the National List in the Federal Register 
and seek public comment on such proposals. The Secretary shall 
include in such Notice any changes to such proposed list or 
amendments recommended by the Secretary. 
(5) PUBUCATION OF NATIONAL LIST.—After evaluating all com-
ments received concerning the Proposed National List or Pro-
posed Amendments to the National List, the Secretary shall 
publish the final National List in the Federal Register, along 
with a discussion of comments received. 
(e) SUNSET PROVISION.—No exemption or prohibition contained in 
the National List shall be valid unless the National Organic Stand-
ards Board has reviewed such exemption or prohibition as provided 
in this section within 5 years of such exemption or prohibition being 
adopted or reviewed and the Secretary has renewed such exemption 
or prohibition. 
SEC. 2119. NATIONAL ORGANIC STANDARDS BOARD. 
(a) IN GENERAL.—The Secretary shall establish a National Or-
ganic Standards Board (in accordance with the Federal Advisory 
Committee Act (5 U.S.C. App. 2 et seq.)) (hereafter referred to in this 
section as the "Board") (to assist in the development of standards for 
substances to be used in organic production and to advise the 
Secretary on any other aspects of the implementation of this title. 
(b) COMPOSITION OF BOARD.—The Board shall be composed of 15 
members, of which— 
(1) four shall be individuals who own or operate an organic 
farming operation; 
(2) two shall be individuals who own or operate an organic 
handling operation; 
(3) one shall be an individual who owns or operates a retail 
establishment with significant trade in organic products; 
(4) three shall be individuals with expertise in areas of 
environmental protection and resource conservation; 
(5) three shall be individuals who represent public interest or 
consumer interest groups; 
(6) one shall be an individual with expertise in the fields of 
toxicology, ecology, or biochemistry; and 
(7) one shall be an individual who is a certifying agent as 
identified under section 2116. 
(c) APPOINTMENT.—Not later than 180 days after the date of 
enactment of this title, the Secretary shall appoint the members of 
the Board under paragraph (1) through (6) of subsection (b) (and 
Federal 
Register, 
publication. 
Federal 
Register, 
publication. 
Establishment. 
7 u s e 6518. 
104 STAT. 3948 
PUBLIC LAW 101-624—NOV. 28, 1990 
under subsection Ot))(7) at an appropriate date after the certification 
of individuals as certifying agents under section 2116) from nomina-
tions received from organic certifying organizations, States, and 
other interested persons and organizations. 
(d) TERM.—A member of the Board shall serve for a term of 5 
years, except that the Secretary shall appoint the original members 
of the Board for staggered terms. A member cannot serve consecu-
tive terms unless such member served an original term that was less 
than 5 years. 
(e) MEETINGS.—The Secretary shall convene a meeting of the 
Board not later than 60 days after the appointment of its members 
and shall convene subsequent meetings on a periodic basis. 
(f) COMPENSATION AND EXPENSES.—A member of the Board shall 
serve without compensation. While away from their homes or regu-
lar places of business on the business of the Board, members of the 
Board may be allowed travel expenses, including per diem in lieu of 
subsistence, as is authorized under section 5703 of title 5, United 
States Code, for persons employed intermittently in the Government 
service. 
(g) CHAIRPERSON.—The Board shall select a Chairperson for the 
Board. 
(h) QUORUM.—A majority of the members of the Board shall 
constitute a quorum for the purpose of conducting business. 
(i) DECISIVE VOTES.—Two-thirds of the votes cast at a meeting of 
the Board at which a quorum is present shall be decisive of any 
motion. 
(j) OTHER TERMS AND CONDITIONS.—The Secretary shall authorize 
the Board to hire a staff director and shall detail staff of the 
Department of Agriculture or allow for the hiring of staff and may, 
subject to necessary appropriations, pay necessary expenses in-
curred by such Board in carrying out the provisions of this title, as 
determined appropriate by the Secretary. 
(k) RESPONSIBIUTIES OF THE BOARD.— 
(1) IN GENERAL.—The Board shall provide recommendations 
to the Secretary regarding the implementation of this title. 
(2) NATIONAL LIST.—The Board shall develop the proposed 
National List or proposed amendments to the National List for 
submission to the Secretary in accordance with section 2118. 
(3) TECHNICAL ADVISORY PANELS.—The Board shall convene 
technical advisory panels to provide scientific evaluation of the 
materials considered for inclusion in the National List. Such 
panels may include experts in agronomy, entomology, health 
sciences and other relevant disciplines. 
(4) SPECIAL REVIEW OF BOTANICAL PESTICIDES.—The Board 
shall, prior to the establishment of the National List, review all 
botanical pesticides used in agricultural production and con-
sider whether any such botanical pesticide should be included in 
the list of prohibited natural substances. 
(5) PRODUCT RESIDUE TESTING.—The Board shall advise the 
Secretary concerning the testing of organically produced agri-
cultural products for residues caused by unavoidable residual 
environmental contamination. 
(6) EMERGENCY SPRAY PROGRAMS.—The Board shall advise the 
Secretary concerning rules for exemptions from specific require-
ments of this title (except the provisions of section 2112) with 
respect to agricultural products produced on certified organic 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3949 
farms if such farms are subject to a Federal or State emergency 
pest or disease treatment program. 
(1) REQUIREMENTS.—In establishing the proposed National List or 
proposed amendments to the National List, the Board shall— 
(1) review available information from the Environmental 
Protection Agency, the National Institute of Environmental 
Health Studies, and such other sources as appropriate, concern-
ing the potential for adverse human and environmental effects 
of substances considered for inclusion in the proposed National 
List; 
(2) work with manufacturers of substances considered for 
inclusion in the proposed National List to obtain a complete list 
of ingredients and determine whether such substances contain 
inert materials that are S3mthetically produced; and 
(3) submit to the Secretary, along with the proposed National 
List or any proposed amendments to such list, the results of the 
Board's evaluation and the evaluation of the technical advisory 
panel of all substances considered for inclusion in the National 
List. 
(m) EVALUATION.—In evaluating substances considered for inclu-
sion in the proposed National List or proposed amendment to the 
National List, the Board shall consider— 
(1) the potential of such substances for detrimental chemical 
interactions with other materials used in organic farming sys-
tems; 
(2) the toxicity and mode of action of the substance and of its 
breakdown products or any contaminants, and their persistence 
and areas of concentration in the environment; 
(3) the probability of environmental contamination during 
manufacture, use, misuse or disposal of such substance; 
(4) the effect of the substance on human health; 
(5) the effects of the substance on biological and chemical 
interactions in the agroecosystem, including the physiological 
effects of the substance on soil organisms (including the salt 
index and solubility of the soil), crops and livestock; 
(6) the alternatives to using the substance in terms of prac-
tices or other available materials; and 
(7) its compatibility with a system of sustainable agriculture, 
(n) PETITIONS.—The Board shall establish procedures under which 
persons may petition the Board for the purpose of evaluating sub-
stances for inclusion on the National List. 
(o) CONFIDENTIAUTY.—Any confidential business information ob-
tained by the Board in carrying out this section shall not be released 
to the public. 
SEC. 2120. VIOLATIONS OF TITLE. 
7 USC 6519. 
(a) MISUSE OF LABEL.—Any person who knowingly sells or labels a 
product as organic, except in accordance with this title, shall be 
subject to a civil penalty of not more than $10,000. 
O
t
)
) FALSE STATEMENT.—Any person who makes a false statement 
under this title to the Secretary, a governing State official, or a 
certifying agent shall be subject to the provisions of section 1001 of 
title 18, United States Code. 
(c) INEUGIBILITY.— 
(1) IN GENERAL.—Except as provided in paragraph (2), any 
person who— 
(A) makes a false statement; 
104 STAT. 3950 
PUBLIC LAW 101-624—NOV. 28, 1990 
(B) attempts to have a label indicating that an agricul-
tural product is organically produced affixed to such prod-
uct that such person knows, or should have reason to know, 
to have been produced or handled in a manner that is not 
in accordance with this title; or 
(C) otherwise violates the purposes of the applicable or-
ganic certification program as determined by the Secretary; 
after notice and an opportunity to be heard, shall not be eli-
gible, for a period of 5 years from the date of such occurrence, to 
receive certification under this title with respect to any farm or 
handling operation in which such person has an interest. 
(2) WAIVER.—Notwithstanding paragraph (1), the Secretary 
may reduce or eliminate the period of ineligibility referred to in 
such paragraph if the Secretary determines that such modifica-
tion or waiver is in the best interests of the applicable organic 
certification program established under this title. 
(d) REPORTING OF VIOLATIONS.—A certifying agent shall imme-
diately report any violations of this title to the Secretary or the 
governing State official (if applicable). 
(e) VIOLATIONS BY CERTIFYING AGENT.—A certifying agent that is a 
private person that violates the provisions of this title or that falsely 
or negligently certifies any farming or handling operation that does 
not meet the terms and conditions of the applicable organic certifi-
cation program as an organic operation, as determined by the 
Secretary or the governing State official (if applicable) shall, after 
notice and an opportunity to be heard— 
(1) lose its accreditation as a certifying agent under this title; 
and 
(2) be ineligible to be accredited as a certifying agent under 
this title for a period of not less than 3 years subsequent to the 
date of such determination. 
(f) EFFECT OF OTHER LAWS.—Nothing in this title shall alter the 
authority of the Secretary under the Federal Meat Inspection Act 
(21 U.S.C. 601 et seq.) the Poultry Products Inspection Act (21 U.S.C. 
451 et seq.), and the Egg Products Inspection Act (21 U.S.C. 1031 et 
seq.) concerning meat, poultry and egg products, nor any of the 
authorities of the Secretary of Health and Human Services under 
the Federal Food, Drug and Cosmetic Act (21 U.S.C. 301 et seq.), nor 
the authority of the Administrator of the Environmental Protection 
Agency under the Federal Insecticide, Fungicide and Rodenticide 
Act (7 U.S.C. 136 et seq.). 
7 use 6520. 
SEC. 2121. ADMINISTRATIVE APPEAL. 
(a) EXPEDITED APPEALS PROCEDURE.—The Secretary shall establish 
an expedited administrative appeals procedure under which persons 
may appeal an action of the Secretary, the applicable governing 
State official, or a certifying agent under this title that— 
(1) adversely affects such person; or 
(2) is inconsistent with the organic certification program 
established under this title. 
(b) APPEAL OF FINAL DECISION.—A final decision of the Secretary 
under subsection (a) may be appealed to the United States District 
Court for the District in which such person is located. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3951 
SEC. 2122. ADMINISTRATION. 
7 USC 6521. 
(a) REGULATIONS.—Not later than 540 days after the date of 
enactment of this title, the Secretary shall issue proposed regula-
tions to carry out this title. 
Qy) ASSISTANCE TO STATE.— 
(1) TECHNICAL AND OTHER ASSISTANCE.—The Secretary shall 
provide technical, administrative, and Extension Service assist-
ance to assist States in the implementation of an organic certifi-
cation program under this title. 
(2) FINANCIAL ASSISTANCE.—The Secretary may provide finan-
cial assistance to any State that implements an organic certifi-
cation program under this title. 
SEC. 2123. AUTHORIZATION OF APPROPRIATIONS. 
7 USC 6522. 
There are authorized to be appropriated for each fiscal year such 
sums as may be necessary to carry out this title. 
TITLE XXII—CROP INSURANCE AND 
DISASTER ASSISTANCE 
Subtitle A—Crop Insurance 
SEC. 2201. SUBMISSION OF SOCIAL SECURITY ACCOUNT NUMBERS AND 
EMPLOYER IDENTIFICATION NUMBERS. 
(a) SUBMISSION REQUIRED.—Section 506 of the Federal Crop Insur-
ance Act (7 U.S.C. 1506) is amended by adding at the end the 
following new subsection: 
"(1) SUBMISSION OF CERTAIN INFORMATION.— 
"(1) SOCIAL SECURITY ACCOUNT AND EMPLOYER IDENTIFICATION 
NUMBERS.—The Corporation shall require, as a condition of 
eligibility for participation in the multiple peril crop insurance 
program, submission of social security account numbers, subject 
to the requirements of section 205(cX2XCXiii) of the Social Secu-
rity Act, and employer identification numbers, subject to the 
requirements of section 6109(f) of the Internal Revenue Code of 
1986. 
"(2) NOTIFICATION BY POUCYHOLDERS.—Each policyholder shall 
notify each individual or other entity that acquires or holds a 
substantial beneficial interest in such policyholder of the 
requirements and limitations under this title. 
"(3) IDENTIFICATION OF HOLDERS OF SUBSTANTIAL INTERESTS.— 
The MEinager of the Corporation may require each policyholder 
to provide to the Manager, at such times and in such manner as 
prescribed by the Manager, the name of each individual that 
holds or acquires a substantial beneficial interest in the policy-
holder. 
"(4) DEFINITION.—For purposes of this subsection, the term 
'substantial beneficial interest' means not less than 5 percent of 
all beneficial interests in the policyholder.". 
Qo) ACCESS BY F C I C TO SOCIAL SECURITY ACCOUNT NUMBERS.— 
Section 205(cX2XC) of the Social Security Act (42 U.S.C. 405(cX2XC)) 
is amended— 
(1) by redesignating clauses (ii), (iii), and (iv) as clauses (iv), (v), 
and (vi), respectively; 
104 STAT. 3952 
PUBLIC LAW 101-624—NOV. 28, 1990 
(2) by redesignating subclauses (I) and (II) of clause (i) as 
clauses (i) and (ii), respectively; and 
(3) by inserting after clause (ii) (as redesignated) the following 
new clause: 
"(iii) In the administration of section 506 of the Federal Crop 
Insurance Act, the Federal Crop Insurance Corporation may require 
each policyholder and each reinsured company to furnish to the 
insurer or to the Corporation the social security account number of 
such policyholder, subject to the requirements of this clause. No 
officer or employee of the Federal Crop Insurance Corporation shall 
have access to any such number for any purpose other than the 
establishment of a system of records necessary for the effective 
administration of such Act. The Manager of the Corporation may 
require each policyholder to provide to the Manager, at such times 
and in such manner as prescribed by the Manager, the social 
security account number of each individual that holds or acquires a 
substantial beneficial interest in the policyholder. For purposes of 
this clause, the term 'substantial beneficial interest' means not less 
than 5 percent of all beneficial interest in the policyholder. The 
Secretary of Agriculture shall restrict, to the satisfaction of the 
Secretary of Health and Human Services, access to social security 
account numbers obtained pursuant to this clause only to officers 
and employees of the United States or authorized persons whose 
duties or responsibilities require access for the administration of the 
Federal Crop Insurance Act. The Secretary of Agriculture shall 
provide such other safeguards as the Secretary of Health and 
Human Services determines to be necessary or appropriate to pro-
tect the confidentiality of such social security account numbers. For 
purposes of this clause the term 'authorized person' means an officer 
or employee of an insurer whom the Manager of the Corporation 
designates by rule, subject to appropriate safeguards including a 
prohibition against the release of such social security account 
number (other than to the Corporation) by such person.". 
(c) CONFIDENTIALITY OF SOCIAL SECURITY ACCOUNT NUMBERS.— 
Section 205(c)(2)(C) of the Social Security Act (42 U.S.C. 405(c)(2)(C)) 
(as amended by subsection (b)) is further amended by adding at the 
end thereof the following new clause: 
"(vii)(I) Social security account numbers and related records that 
are obtained or maintained by authorized persons pursuant to any 
provision of law, enacted on or after October 1, 1990, shall be 
confidential, and no authorized person shall disclose any such social 
security account number or related record. 
"(II) Paragraphs (1), (2), and (3) of section 7213(a) of the Internal 
Revenue Code of 1986 shall apply with respect to the unauthorized 
willful disclosure to any person of social security account numbers 
and related records obtained or maintained by an authorized person 
pursuant to a provision of law enacted on or after October 1,1990, in 
the same manner and to the same extent as such paragraphs as such 
paragraphs apply with respect to unauthorized disclosures of re-
turns and return information described in such paragraphs. Para-
graph (4) of such 7213(a) of such Code shall apply with respect to the 
willful offer of any item of material value in exchange for any such 
social security account number or related record in the same 
manner and to the same extent £is such paragraph applies with 
respect to offers (in exchange for any return or return information) 
described in such pargigraph. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3953 
"(HI) For purposes of this clause, the term 'authorized person' 
means an officer or employee of the United States, an officer or 
employee of any State, political subdivision of a State, or agency of a 
State or political subdivision of a State, and any other person (or 
officer or employee thereof), who has or had access to social security 
account numbers or related records pursuant to any provision of law 
enacted on or after October 1, 1990. For purposes of this subclause, 
the term 'officer or employee' includes a former officer or employee. 
"(IV) For purposes of this clause, the term 'related record' means 
any record, list, or compilation that indicates, directly or indirectly, 
the identity of any individual with respect to whom a social security 
account number is maintained pursuant to this clause.". 
(d) ACCESS BY F C I C TO EMPLOYER IDENTIFICATION NUMBERS.— 
Section 6109 of the Internal Revenue Code of 1986 (relating to 26 USC 6109. 
identifjdng numbers) is amended by adding at the end thereof the 
following new subsection: 
"(f) ACCESS TO EMPLOYER IDENTIFICATION NUMBERS BY FEDERAL 
CROP INSURANCE CORPORATION FOR PURPOSES OF THE FEDERAL CROP 
INSURANCE ACT.— 
"(1) IN GENERAL.—In the administration of section 506 of the 
Federal Crop Insurance Act, the Federal Crop Insurance Cor-
poration may require each policyholder and each reinsured 
company to furnish to the insurer or to the Corporation the 
employer identification number of such policyholder, subject to 
the requirements of this paragraph. No officer or employee of 
the Federal Crop Insurance Corporation, or authorized person 
shall have access to any such number for any purpose other 
than the establishment of a system of records necessary to the 
effective administration of such Act. The Manager of the Cor-
poration may require each policyholder to provide to the Man-
ager or authorized person, at such times and in such manner as 
prescribed by the Manager, the employer identification number 
of each entity that holds or acquires a substantial beneficial 
interest in the policyholder. For purposes of this subclause, the 
term 'substantial beneficial interest' means not less than 5 
percent of all beneficial interest in the policyholder. The Sec-
retary of Agriculture shall restrict, to the satisfaction of the 
Secretary of the Treasury, access to employer identification 
numbers obtained pursuant to this paragraph only to officers 
and employees of the United States or authorized persons whose 
duties or responsibilities require access for the administration 
of the Federal Crop Insurance Act. 
"(2) CONFIDENTIALITY AND NONDISCLOSURE RULES.—Employer 
identification numbers maintained by the Secretary of Agri-
culture or the Federal Crop Insurance Corporation pursuant to 
this subsection shall be confidential, and except as authorized 
by this subsection, no officer or employee of the United States or 
authorized person who has or had access to such employer 
identification numbers shall disclose any such employer identi-
fication number obtained thereby in any manner. For purposes 
of this paragraph, the term 'officer or employee' includes a 
former officer or employee. For purposes of this subsection, the 
term 'authorized person' means an officer or employee of an 
insurer whom the Manager of the Corporation designates by 
rule, subject to appropriate safeguards including a prohibition 
against the release of such social security account numbers 
(other than to the Corporations) by such person. 
104 STAT. 3954 
PUBLIC LAW 101-624—NOV. 28, 1990 
"(3) SANCTIONS.—Paragraphs (1), (2), and (3) of section 7213(a) 
shall apply with respect to the unauthorized willful disclosure 
to any person of employer identification numbers maintained 
by the Secretary of Agriculture or the Federal Crop Insurance 
Corporation pursuant to this subsection in the same manner 
and to the same extent as such paragraphs apply with respect to 
unauthorized disclosures of return and return information 
described in such paragraphs. Paragraph (4) of section 7213(a) 
shall apply with respect to the willful offer of any item of 
material value in exchange for any such employer identification 
number in the same msmner and to the same extent as such 
paragraph applies with respect to offers (in exchange for any 
return or return information) described in such paragraph.". 
SEC. 2202. PENALTIES FOR WILLFUL PROVISION OF FALSE OR INAC-
CURATE INFORMATION. 
(a) PENALTIES AUTHORIZED.—Section 506 of the Federal Crop 
Insurance Act (7 U.S.C. 1506), as amended by section 2201(a), is 
further amended by adding at the end the following new subsection: 
"(m) PENALTIES.— 
"(1) FALSE INFORMATION.—If a person wilfully and inten-
tionally provides any false or inaccurate information to the 
Corporation or to any insurer with respect to an insurance plan 
or policy under this title, the Corporation may, after notice and 
an opportunity for a hearing on the record— 
"(A) impose a civil fine of not to exceed to $10,000 on the 
person; and 
"(B) disqualify the person from receiving any benefit 
under this title for a period of not to exceed 10 years. 
"(2) ASSESSMENT OF PENALTY.—In assessing penalties under 
this subsection, the (Uorporation shall consider the gravity of the 
violation.". 
(b) CONFORMING AND STYLISTIC AMENDMENTS.—Such section is 
further amended— 
(1) by striking the section heading and all that follows 
through "The Corporation—" and inserting the following: 
"SEC. 506. GENERAL POWERS."; 
(2) by inserting "SUCCESSION.—The Corporation" in subsec-
tion (a) after "(a)"; 
(3) by inserting "CORPORATE SEAL.—The Corporation" in 
subsection (b) after "(b)"; 
(4) by inserting "PROPERTY.—The Corporation" in subsection 
(c) after "(c)"; 
(5) by inserting "SUIT.—The (Corporation," in subsection (d) 
after "(d)"; 
(6) by inserting "BYLAWS AND REGULATIONS.—The C!orpora-
tion" in subsection (e) after "(e)"; 
(7) by inserting "MAILS.—The Clorporation" in subsection (f) 
after "(f)"; 
(8) by inserting "ASSISTANCE.—The Corporation," in subsec-
tion (g) after "(g)"; 
(9) by inserting "DATA COLLECTION.—The Corporation" in 
subsection (h) after "(h)"; 
(10) by inserting 
"EXPENDFTURES.—The (Corporation" in 
subsection (i) after "(i)"; 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3955 
(11) by inserting "OTHER POWERS.—The Corporation" in 
subsection 0') after "(j)"; 
(12) by inserting "CONTRACTS.—The Corporation" in subsec-
tion (k) after "(k)"; 
(13) by striking the semicolon at the end of subsections (a), (b), 
(c), (e), (f), (g), (h) and inserting a period at the end of each of 
those subsections; and 
(14) by striking "; and" at the end of subsections (i) and (j) and 
inserting a period at the end of each of those subsections. 
SEC. 2203. UNIFORM CLAIMS ADJUSTMENT AND REINSURANCE AGREE-
MENTS. 
(a) CLAIMS ADJUSTMENT.—Section 508(c) of the Federal Crop Insur-
ance Act (7 U.S.C. 1508(c)) is amended— 
(1) by striking "To adjust and pay claims for losses" in the 
first sentence and inserting "CLAIMS FOR LOSSES.—The Corpora-
tion may adjust and pay claims for losses £is provided under 
subsection (a)"; and 
(2) by inserting after the first sentence the following new 
sentence: "The rules prescribed by the Board shall establish 
standards to ensure that all claims for losses are adiusted to the 
extent practicable in a uniform and timely manner.'. 
(b) REINSURANCE AGREEMENTS.—Section 508(e) of the Federal Crop 
Insurance Act (7 U.S.C, 1508(e)) is amended— 
(1) by striking "And" and inserting "REINSURANCE.—The Cor-
poration is"; and 
(2) by adding at the end the following new sentence: "Begin-
ning with the 1992 reinsurance year (July 1, 1991 through June 
30, 1992), the Corporation shall revise its reinsurance agree-
ments with the reinsured companies so as to require the re-
insured companies to bear an increased share of any potential 
loss under such agreement, taking into consideration the finan-
cial conditions of the reinsured companies and the availability 
of private reinsurance.". 
SEC. 2204. REVIEW OF POLICIES, ENSURING ACTUARIAL SOUNDNESS, 
AND INFORMATION COLLECTION. 
(a) IN GENERAL.—Section 508 of the Federal Crop Insurance Act (7 
U.S.C. 1508) is amended— 
(1) by redesignating subsections (b) through (j) as subsections 
(e) through (m), respectively; 
(2) by inserting after subsection (a) the following new subsec-
tions: 
"
O
t
>
) SUBMISSION OF POUCIES AND MATERIALS TO BOARD .— 
"(1) IN GENERAL.—In addition to any standard forms or poli-
cies that the Board may require be made available to producers 
under subsection (a) persons may prepare for submission to the 
Board— 
"(A) other crop insurance policies and provisions of poli-
cies; and 
"(B) rates of premiums for multiple peril crop insurance 
pertaining to wheat, soybeans, field corn and any other 
crops determined by the Secretary. 
"(2) PREPARATION OF POLICIES.—A policy 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 
104 STAT. 3956 
PUBLIC LAW 101-624—NOV. 28, 1990 
rates, the use of Agricultural Stabilization and Conservation 
Service adjusted yields, and the requirement that a price level 
for each commodity insured must equal the projected market 
price for the commodity as established by the Board. Policies 
that establish insurance coverage based on alternative factors of 
loss such as the average loss rate for the area from a condition 
common to the area may be approved under this section. Such 
policy may only be subsidized at an amount equivalent to that 
which is authorized in this title. 
"(3) REVIEW AND APPROVAL BY THE BOARD.—A policy 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 such producers are actuarially appropriate, 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 taking into consider-
ation the risks covered by the policy or other material. The 
Corporation may enter into more than one reinsurance agree-
ment simultaneously to facilitate the offering of such new 
policies. Proposals made to the Board under this paragraph 
shall be considered as confidential commercial or 
financial 
information for purposes of section 55203)(4) of title V, United 
States Code, until approved or disapproved by the Board. The 
Board shall provide an applicant with notification of intent to 
disapprove a proposal not later than 30 days prior to taking 
such action. An applicant so notified may modify such applica-
tion and such modification shall be considered an extension of 
the original application. 
"(4) REQUIRED PUBLICATION.—Any policies, provisions of poli-
cies, and rates approved under this subsection shall be pub-
lished and made available to all persons contracting with or 
reinsured by the Corporation in the same manner as the Cor-
poration's standard policies of insurance are published and 
made available. 
"(c) ACTUARIAL SOUNDNESS.—Not later than 180 days after the 
date of enactment of this subsection, the Corporation shall compile 
and make available, by region and by crop, the rates that would be 
necessary to achieve actuarial soundness. 
"(d) ADOPTION OF RATES AND COVERAGES.—The Corporation shall 
adopt, as soon as practicable, rates and coverages that will improve 
the actuarial soundness of the insurance operations of the Corpora-
tion for those crops that 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."; and 
(3) by adding at the end the following new subsection: 
"(n) INFORMATION COLLECTION ON CROP INSURANCE.— 
"(1) IN GENERAL.—The Corporation shall provide to the Sec-
retary of Agriculture— 
"(A) current and complete information on all aspects of 
Federal crop insurance for distribution to producers 
through local offices of the Department of Agriculture; £ind 
"(B) a listing of agents for agent referral to producers 
through local offices of the Department of Agriculture. 
"(2) USE OF INFORMATION.—The Secretary shall utilize the 
information provided under paragraph (1) to educate State 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3957 
executive directors of the Agricultural Stabilization and Con-
servation Service concerning such information to enable such 
directors to convey such information to local offices for distribu-
tion to local producers.". 
Q)) CONFORMING AND STYUSTIC AMENDMENTS.—Such section is 
further amended— 
(1) by striking the section heading and all that follows 
through "authorized and empowered—" and inserting the fol-
lowing: 
"SEC. 508. CROP INSURANCE."; 
(2) in subsection (e) (as redesignated by subsection (aXD), by 
striking "(1) To" £ind inserting "PREMIUMS.—(1) The Corpora-
tion may"; 
(3) in subsection (g) (as redesignated by subsection (aXD)— 
(A) by striking "In" and inserting "SPECIAL RULE FOR 
COTTON.—In"; and 
(B) by striking "to include" and inserting "the Corpora-
tion may include"; 
(4) in subsection (i) (as redesignated by subsection (a)(1)), by 
striking "To provide" and inserting "APPLICATION TO OTHER 
AREAS.—The Corporation may provide"; 
(5) in subsection (j) (as redesignated by subsection (a)(1)), by 
striking "To offer" and inserting "OPTIONAL COVERAGES.—The 
Corporation may offer"; 
(6) in subsection (k) (as redesignated by subsection (aXD), by 
striking "To include" and inserting "SPECIAL RULE FOR TIMBER 
AND FORESTS.—The Corporation may include"; 
(7) in subsection (1) (as redesignated by subsection (a)(1))— 
(A) by striking "To conduct" and inserting "RESEARCH.— 
The Corporation may conduct"; and 
(B) by striking the second and third sentences; and 
(8) by striking subsection (m) (as redesignated by subsection 
(a)(1)) and inserting the following new subsection: 
"(m) CROP INSURANCE FOR DRY EDIBLE BEANS.—The Corporation 
shall make available to producers of different types of dry edible 
beans crop insurance that meets the differentiated needs of such 
producers.". 
SEC. 2205. ASCS YIELDS AND DOLLAR-DENOMINATED COVERAGE. 
Section 508 of the Federal Crop Insurance Act (7 U.S.C. 1508(a)) is 
amended— 
(1) in subsection (a)— 
(A) by inserting "AUTHORITY TO OFFER INSURANCE.—(1)" 
after "(a)"; 
(B) by striking "to insure" in the first sentence, and 
inserting "the Corporation may insure"; 
(C) by striking "The Corporation" in the seventh sen-
tence, and inserting in lieu thereof the following: "For any 
commodity for which the Agricultural Stabilization and 
Conservation Service has established for the farming unit 
involved an adjusted yield for the purposes of programs 
administered by such Service (or a jdeld for crop insurance 
purposes under the provisions of this title), and such jdeld is 
greater than the recorded or the appraised jdeld, as estab-
lished by the Corporation, of a commodity on such farming 
unit, insurance coverage may be provided to cover against 
104 STAT. 3958 
PUBLIC LAW 101-624—NOV. 28, 1990 
the loss in jdeld of the commodity on the basis of the 
adjusted yield for the commodity established by the Agri-
cultural Stabilization and Conservation Service rather than 
the recorded or appraised 3deld as established by the Cor-
poration. Such additional insurance shall be provided for an 
additional premium (for which no premium subsidy or 
administrative subsidy may be provided) set at such rate as 
the Board determines appropriate to reflect accurately the 
increased risk involved and that the Board determines 
actuarially sufficient to cover claims for losses on such 
insurance and to establish a re£isonable reserve against 
unforeseen losses. Except as provided in the preceding two 
sentences, the Corporation"; and 
(D) by adding at the end the following new sentences: 
"Beginning with the 1992 crop year, the Corporation shall 
establish a price level for each commodity on which insur-
ance is offered that shall not be less than the projected 
market price for the commodity as determined by the 
Board. Insurance coverage shall be made available to the 
producer on the basis of any price election which equals or 
is less than that established by the Board and the coverage 
shall be quoted in terms of dollars per acre."; and 
(2) by striking out subsection (k). 
SEC. 2206. CONTRACTING WITH PRIVATE COMPANIES. 
Section 507(c) of the Federal Crop Insurance Act (7 U.S.C. 1507(c)) 
is amended— 
(1) by inserting after "private insurance companies" in para-
graph (2) the following: "private rating bureaus, and other 
organizations as appropriate for actuarial, loss adjustment, and 
other services to avoid duplication by the Federal Government 
of services that are or may readily be available in the private 
sector,"; and 
(2) by adding at the end the following new sentence: "Nothing 
in this subsection shall permit the Corporation to contract with 
other persons to carry out the responsibility of the Corporation 
to review and approve policies, rates, and other materials 
submitted under section 508(b).". 
Subtitle B—Disaster Assistance 
CHAPTER 1—1989 CROP CLARIFICATION 
SEC. 2231. SUGARCANE DISASTER ASSISTANCE. 
(a) DETERMINATION.—Section 103 of the Dissister Assistance Act of 
1989 (7 U.S.C. 1421 note) is amended by adding at the end the 
following new subsection: 
"(f) SPECIAL RULE FOR SUGARCANE.—For purposes of determining 
the total quantity of the 1989 crop of sugarcane that the producers 
on a farm are able to harvest, the Secretary shall make the deter-
mination based on the quantity of recoverable sugar.". 
(b) DEADUNE.—Section 152(aX2) of the Disaster Assistance Act of 
1989 (7 U.S.C. 1421 note) is amended by adding at the end the 
following new sentence: "In the case of producers described in 
section 103(f), the Secretary shedl permit the producers to apply for 
assistance no later than January 15, 1991, and shall, in the case of 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3959 
applications received prior to the date of enactment of the Food, 
Agriculture, Conservation, and Trade Act of 1990, recompute (in 
accordance with section 103(f)) the amount of any assistance due no 
later than 90 days after the date of enactment of such Act.". 
SEC. 2232. VALENCIA ORANGES. 
(a) EuGiBiUTY.—Section 104(aXlXA) of the Disaster Assistance 
Act of 1989 (7 U.S.C. 1421 note) is amended to read: 
(A) ELIGIBILITY.—Effective only for the 1989 crops of soybeans and 
nonprogram crops, and any crop of Valencia oranges affected by a 
freeze, if the Secretary of Agriculture determines that, because of 
damaging weather or related condition in 1988 or 1989, or freeze, the 
total quantity of the 1989 crop of the commodity, or the total 
quantity of any crop of Valencia oranges, that the producers on a 
farm are able to harvest is less than—". 
(b) SPECIAL RULES.—Section 104(dXl) of the Disaster Assistance 
Act of 1989 (7 U.S.C. 1421 note) is amended: 
(1) by inserting after 
"(1) DEFINITION 
OF NONPROGRAM 
CROPS.—" a new subparagraph designation "(A)"; 
(2) by inserting after "earthquake" the following: "or grown 
in a county declared a Presidential disaster area, and shall 
include any Valencia oranges, affected by a freeze, grown in a 
county declared a Presidential disaster area in 1989"; and 
(3) by adding at the end a new subparagraph to read as 
follows: 
"(B) For purposes of this Act, the term "1989 crop" shall 
include any crop of Valencia oranges damaged by freeze in 
1989.". 
(c) EXCLUSIONS FROM HARVESTED QUANTITIES.—Section 104(aX4) of 
that Act is amended by adding at the end the following new 7 USC1421 note. 
sentence: "For a crop of Valencia oranges, the exclusion required by 
the preceding sentence shall be 100 percent.". 
(d) APPLICATION OF AMENDMENTS.—Section 152(a) of the Disaster 
Assistance Act of 1989 is amended by adding at the end the follow- 7 USC 1421 note. 
ing new paragraph: 
"(3) EXTENDED APPUCATION PERIOD.—In the case of producers 
of Valencia oranges affected by the amendments made to section 
104(a) by section 2235 of the Food, Agriculture, Conservations, 
and Trade Act of 1990, the Secretary shall— 
"(A) allow such producers to submit applications for pay-
ments under section 104 until January 15,1991; and 
"(B) in the case of applications submitted by such produc-
ers before the date of the enactment of that Act, recompute 
(not later than 90 days after such date) the pajmient to such 
producers under section 104 in light of those amendments.". 
CHAPTER 2—OTHER ASSISTANCE 
SEC. 2235. AMENDMENTS TO THE DISASTER ASSISTANCE ACT OF 1989. 
(a) DOUBLE CROPPING OF NONPROGRAM CROPS GROWN IN A PRESI-
DENTIAL DISASTER AREA.—Section 104(a) of the Disaster Assistance 
Act of 1989 (7 U.S.C. 1421 note) is amended by adding at the end the 
following new paragraph: 
"(5) DOUBLE CROPPING.— 
"(A) 
TREATED 
SEPARATELY.—In the case of a 1989 
nonprogram crop that is historically double cropped (includ-
: 
ing two crops of the same commodity) by the producers on a 
104 STAT. 3960 
PUBLIC LAW 101-624—NOV. 28, 1990 
farm, the Secretary shall treat each cropping separately for 
purposes of determining under paragraph (1)— 
"(i) whether the crop was affected by damaging 
weather or related conditions in 1989; £ind 
"(ii) the total quantity of the crop that the producers 
are able to harvest. 
"(B) APPLICATION OF PARAGRAPH.—This paragraph shall— 
"(i) apply only in the case of a 1989 nonprogram crop 
that is grown in a county declared to be a Presidential 
disaster area for that crop; and 
"(ii) not apply in the case of a replacement crop 
described in section 110.". 
State listing. 
(b) HURRICANE HuGO FORESTRY ASSISTANCE ACT; COST-SHARE 
Puerto Rico. 
ASSISTANCE.— 
Virgin Islands. 
(1) EsTABUSHMENT.—For the purposes of oncouraging tree 
7 use 1421 note. 
owners to reestablish stands of trees damaged by Hurricane 
Hugo, the Secretary of Agriculture (hereafter in this subsection 
referred to as the "Secretary") shall develop and implement a 
cost-share program to provide financial assistance to owners of 
private timber stands that were damaged, as determined by the 
Secretary, in 1989 by Hurricane Hugo. This assistance shall 
only be made available in those counties in South Carolina, 
North Carolina, Virginia, Puerto Rico, and the United States 
Virgin Islands declared by the President to be disaster areas as 
a result of Hurricane Hugo and any county contiguous to those 
counties. 
(2) EuGiBLE PRACTICES.—Practicos eligible for cost-share 
assistance under this subsection are— 
(A) reforestation; 
(B) site preparation; and 
(C) such other timber stand reestablishment practices as 
may be prescribed by the Secretary. 
(3) PRIVATE TIMBER STANDS.— 
(A) DEFINITION.—For the purpose of this subsection, the 
term "private timber stand' means a stand of trees dam-
aged by Hurricane Hugo held continuously during the 
period described in paragraph (1) for commercial purposes 
by a private individual, group, association, corporation, 
Indian tribe or other native Indian group, or other legal 
entity, owning 1,000 acres or less of land planted to trees, 
except agencies of Federal, State, or local governments. 
Such term does not include a stand of trees transferred 
• 
after the date on which such stand was damaged by Hurri-
cane Hugo except for a stand of trees transferred by be-
quest, devise or inheritance, or acquired from a decedent by 
reason of death because of the form of ownership or other 
condition (including trees acquired through the exercise or 
nonexercise of a power of appointment). 
/ 
(B) PERIOD FOR PURPOSES OF SUBPARAGRAPH (A).—The 
period referred to in subparagraph (A) is the period begin-
ning on the date on which such trees were damaged by 
Hurricane Hugo and ending at the time the request is made 
for assistance under this subsection. 
(4) INDIVIDUAL FOREST MANAGEMENT PLANS.—The Secretary 
may provide assistance under this subsection only after a 
management plan for the private timber stand hgis been devel-
oped by the holder of the stand in cooperation with, and ap-
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3961 
proved by, the State forester or equivalent State official. Such 
management plan shall— 
(A) include provision for the replacement of the timber 
stand through reforestation by tree plantings or other 
means; and 
(B) be the basis for an agreement between the holder and 
the Secretary under paragraph (5). 
(5) COST SHARE.—The Secretary shall enter into agreements to Government 
share the cost of implementing eligible practices set forth in the contracts. 
agreement with holders who agree to implement those eligible 
practices. The amount of the Federal cost-share (including 
labor) for an eligible practice shall be 75 percent of the total cost 
of implementing eligible practices. The Secretary may consider, 
in determining the total cost of implementing eligible practices, 
any revenues from the sale of timber from private timber 
stands. 
(6) DEADUNE.—Requests for assistance under this subsection 
must be filed with the Secretary not later than December 31, 
1993. 
(7) PAYMENT LIMITATION.—The total amount of pa3anents that 
a person shall be entitled to receive under this subsection may 
not exceed $50,000. The Secretary shall issue regulations defin- Regulations. 
ing the term "person" which 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). 
(8) REGULATIONS.—The Secretary shall issue regulations to 
implement the provisions of this subsection as soon as 
practicable after the date on which appropriations are made 
available to carry out this subsection, without regard to the 
requirement for notice and public participation in rulemaking 
prescribed in section 553 of title 5, United States Code. 
(c) AUTHORIZATION OF APPROPRIATIONS.—Any benefits or assist- 7 use 1421 note. 
ance provided under this section, or under the amendments made by 
this section to the Disaster Assistance Act of 1989, shall be provided 
only to the extent provided for in advance by appropriation acts. To 
carry out this section, and the amendments made by this section to 
the Disaster Assistance Act of 1989, there are hereby authorized to 
be appropriated for fiscal years 1991 through 1995 such sums as are 
necessary. 
SEC. 2236. SUGARCANE. 
(a) 1990 CROP.—Efiective only for the 1990 crop of sugarcane, 
section 201(kX2) of the Agricultural Act of 1949 (7 U.S.C. 1446(kX2)) 
is amended— 
(1) by inserting "(A)" after the paragraph designation; and 
(2) by adding at the end the following paragraph: 
"(BXi) If, because of frost, freeze, or related condition in 1989 Louisiana. 
constituting a major disaster or emergency declared by the 
President in the State of Louisiana under the Robert T. Stafford 
Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et 
seq.), the total quantity of the 1990 crop of sugarcane that the 
producers are able to harvest on any farm is less than— 
"(I) 60 percent of the county average jdeld, as determined 
by the Secretary, for the crop, multiplied by 
"(II) the acreage planted for harvest to the crop, the 
Secretary shall make a reduced jdeld disaster pajmient to 
104 STAT. 3962 
PUBLIC LAW 101-624—NOV. 28, 1990 
the producers at a rate equal to 50 percent of the loan level 
for the crop for the deficiency in production greater than 60 
percent for the crop, 
"(ii) The Secretary shall ensure that no producer receives 
duplicative payments under this subparagraph. 
"(iii) Any benefits or assistance provided for under this sec-
tion shall be provided only to the extent provided for in advance 
Appropriation 
in appropriations Acts. There are authorized to be appropriated 
authorization. 
such 
sums as may be necessary to carry out this 
subparagraph.". 
7 use 1421 note. 
CHAPTER 3—EMERGENCY CROP LOSS ASSISTANCE 
Subchapter A—Annual Crops 
SEC. 2241. PAYMENTS TO PROGRAM PARTICIPANTS FOR TARGET PRICE 
COMMODITIES. 
(a) DISASTER PAYMENTS.— 
(1) IN GENERAL.—Effective only for producers on a farm who 
elected to participate in the production adjustment program 
established under the Agricultural Act of 1949 (7 U.S.C. 1421 et 
seq.) for the 1990 crop of wheat, feed grains, upleind cotton, 
extra long staple cotton, or rice, except as otherwise provided in 
this subsection, if the Secretary of Agriculture determines that, 
because of damaging weather or related condition in 1989 or 
1990, the total quantity of the 1990 crop of the commodity that 
such producers are able to harvest on the farm is less than the 
result of multiplying 60 percent (or, in the case of producers 
who obtained crop insurance for the 1990 crop of the commodity 
under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.), 65 
percent) of the farm program pajntnent jdeld established by the 
Secretary for such crop by the sum of the acreage planted for 
harvest and the acreage prevented from being planted O^ecause 
of a natural disaster, as determined by the Secretary) for such 
crop, the Secretary shall make a disaster payment available to 
such producers at a rate equal to 65 percent of the established 
price for the crop for any deficiency in production greater than 
40 percent (or, in the case of producers who obtained crop 
insurance for the 1990 crop of the commodity under the Federal 
Crop Insurance Act, 35 percent) for the crop. 
(2) LIMITATIONS.— 
(A) ACREAGE IN EXCESS OF PERMITTED ACREAGE.—Pay-
ments provided under paragraph (1) for a crop of a commod-
ity may not be made available to producers on a farm with 
respect to any acreage in excess of the permitted acreage 
for the farm for the commodity. 
(B) CROP INSURANCE.—Payments provided under para-
graph (1) for a crop of a commodity may not be made 
available to producers on a farm unless such producers 
enter into an agreement to obtain multiperil crop insur-
ance, to the extent required under section 2247. 
(3) REDUCTION IN DEFICIENCY PAYMENTS.—The total quantity 
of a crop of a commodity on which deficiency pajmients other-
wise would be payable to producers on a farm under the Agri-
cultural Act of 1949 shall be reduced by the quantity on which a 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3963 
payment is made to the producers for the crop under paragraph 
(1). 
(4) ELECTION OF PAYMENTS.— 
(A) APPLICATION OF PARAGRAPH.—This paragraph shall 
apply, effective only for the 1990 crops of wheat, feed 
grains, upland cotton, and rice, to producers on a farm 
who— 
(i) had failed wheat, feed grain, upland cotton, or rice 
acreage; or 
(ii) were prevented from planting acreage to such 
commodity because of damaging weather or related 
condition in 1989 or 1990. 
(B) ELECTION.—The Secretary of Agriculture shall (within 
30 days after the date of enactment of this Act) permit 
producers referred to in subparagraph (A) to elect whether 
to receive disaster pa3nnents in accordance with this section 
in lieu of pajonents received under the Agricultural Act of 
1949. 
O
t
)
) ADVANCE DEFICIENCY PAYMENTS.— 
(1) APPLICATION OF SUBSECTION.—This subsection shall apply 
only to producers on a farm who elected to participate in the 
production adjustment program established under the Agricul-
tural Act of 1949 for the 1990 crop of wheat, feed grains, upland 
cotton, or rice. 
(2) FORGIVENESS OF REFUND REQUIREMENT.— 
(A) IN GENERAL.—Subject to subparagraph (B), if because 
of damaging weather or related condition in 1989 or 1990 
the total quantity of the 1990 crop of the commodity that 
the producers are able to harvest on the farm is less than 
the result of multipljdng the farm program payment jdeld 
established by the Secretary for such crop by the sum of the 
acreage planted for harvest gind the acreage prevented from 
being planted O^ecause of a natural disaster, as determined 
by the Secretary) for such crop (hereinafter in this section 
referred to as the "qualifjdng amount"), the producers shall 
not be required to refund any advance deficiency pajntnent 
made to the producers for such crop under section 107C of 
the Agricultural Act of 1949 (7 U.S.C. 1445b-2) with respect 
to that portion of the deficiency in production that does not 
exceed— 
(i) in the case of producers who obtained crop insur-
ance for the 1990 crop of the commodity under the 
Federal Crop Insurance Act, 35 percent of the qualify-
ing amount; and 
(ii) in the case of other producers, 40 percent of the 
qualifying amount. 
(B) CROP INSURANCE.—Producers on a farm shall not be 
eligible for the forgiveness provided for under subpara-
graph (A), unless such producers enter into an agreement to 
obtain multiperil crop insurance, to the extent required 
under section 2247. 
(3) ELECTION FOR NONRECIPIENTS.—The Secretary shall allow 
producers on a farm who elected, prior to the date of enactment 
of this Act, not to receive advance deficiency payments made 
available for the 1990 crop under section 107C of the Agricul-
tural Act of 1949, to elect (within 30 days after the date of the 
39-194 O - 91 - 21 : QL 3 Part 5 
104 STAT. 3964 
PUBLIC LAW 101-624—NOV. 28, 1990 
enactment of this Act) whether to receive such advance defi-
ciency payments. 
(4) DATE OF REFUND FOR PAYMENTS.—Effective only for the 
1990 crops of wheat, feed grgdns, upland cotton, and rice, if the 
Secretary determines that any portion of the advance deficiency 
pa3niient made to producers for the crop under section 107C of 
the Agricultural Act of 1949 must be refunded, such refund 
shall not be required prior to July 31, 1991, for that portion of 
the crop for which a disaster payment is made under subsection 
(a). 
SEC. 2242. PAYMENTS TO PROGRAM NONPARTICIPANTS FOR TARGET 
PRICE COMMODITIES. 
(a) DISASTER PAYMENTS.— 
(1) IN GENERAL.—Effective only for producers on a farm who 
elected not to participate in the production adjustment program 
established under the Agricultural Act of 1949 (7 U.S.C. 1421 et 
seq.) for the 1990 crop of wheat, feed grains, upland cotton, 
extra long staple cotton, or rice, if the Secretary of Agriculture 
determines that because of damaging weather or related condi-
tion in 1989 or 1990, the total quantity of the 1990 crop of the 
commodity that such producers are able to harvest on the farm 
is less than the result of multiplying 40 percent (or in the case of 
producers who obtained crop insurance, 35 percent) of the 
county average yield established by the Secretary for such crop 
by the sum of acreage planted for harvest and the acreeige for 
which prevented planted credit is approved by the Secretary for 
such crop under subsection (h), the Secretary shall make a 
disaster payment available to such producers. 
(2) PAYMENT RATE.—The payment shall be made to the 
producers at a rate equal to 65 percent of the basic county loan 
rate (or a comparable price if there is no current basic county 
loan rate) for the crop, as determined by the Secretary, for any 
deficiency in production greater than 40 percent for the crop (or 
in the case of producers who obtained crop insurance, 35 per-
cent). 
(b) PREVENTED PLANTING CREDIT.— 
(1) IN GENERAL.—The Secretary shall provide prevented plant-
ing credit under subsection (a) with respect to acreage that 
producers on a farm were prevented from planting to the 1990 
crop of the commodity for harvest because of damaging weather 
or related condition in 1989 or 1990, as determined by the 
Secretary. 
(2) MAXIMUM ACREAGE.—Such acreage may not exceed the 
greater of— 
(A) a quantity equal to the acreage on the farm planted 
(or prevented from being planted due to a natural disaster 
or other condition beyond the control of the producers) to 
the commodity for harvest in 1989 minus acreage actually 
planted to the commodity for harvest in 1990; or 
(B) a quantity equal to the average of the acreage on the 
farm planted (or prevented from being planted due to a 
natural disaster or other condition beyond the control of 
the producers) to the commodity for harvest in 1987, 1988, 
and 1989 minus acreage actuEilly planted to the commodity 
for harvest in 1990. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3965 
(3) ADJUSTMENTS.—The Secretary shall mgike appropriate 
adjustments in appl3dng the limitations contained in pareigraph 
(2) to take into account crop rotation practices of the producers. 
(c) LIMITATIONS.— 
(1) ACREAGE LIMITATION PROGRAM.—The amount of payments 
made available to producers on a farm for a crop of a commodity 
under subsection (a) shall be reduced by a factor equivalent to 
the acreage limitation program percentage established for such 
crop under the Agricultural Act of 1949. 
(2) CROP INSURANCE.—Pajnnents provided under subsection (a) 
for a crop of a commodity may not be made available to the 
producers on a farm unless such producers enter into an agree-
ment to obtain multiperil crop insurance, to the extent required 
under section 2247. 
SEC. 2243. PEANUTS, SUGAR, AND TOBACCO. 
(a) DISASTER PAYMENTS.— 
(1) IN GENERAL.—Effective only for the 1990 crops of peanuts, 
sugar beets, sugarcane, and tobacco, if the Secretary of Agri-
culture determines that, because of damaging weather or re-
lated condition in 1989 or 1990, the total quantity of the 1990 
crop of the commodity that the producers on a farm are able to 
harvest is less than the result of multiplying 60 percent (or, in 
the case of producers who obtained crop insurance for the 1990 
crop of the commodity under the Federal Crop Insurance Act (7 
U.S.C. 1501 et seq.), 65 percent) of the county average yield (or 
program yield, in the case of peanuts) established by the Sec-
retary for such crop by the sum of the acreage planted for 
harvest and the acreage for which prevented planted credit is 
approved by the Secretary for such crop under subsection (b), 
the Secretary shall make a disaster pajnnent available to such 
producers. 
(2) PAYMENT RATE.—The pajrment shall be made to the 
producers at a rate equal to 65 percent of the applicable pay-
ment level under paragraph (3), as determined by the Secretary, 
for any deficiency in production greater than— 
(A) in the case of producers who obtained crop insurance 
for the 1990 crop of the commodity under the Federal Crop 
Insurance Act— 
(i) 35 percent for the crop; or 
(ii) with respect to a crop of hurley tobacco or flue-
cured tobacco, 35 percent of the farm's 
effective 
marketing quota for 1990; and 
(B) in the case of producers who did not obtain crop 
insurance for the 1990 crop of the commodity under the 
Federal Crop Insurance Act— 
(i) 40 percent for the crop; or 
(ii) with respect to a crop of hurley tobacco or flue-
cured tobacco, 40 percent of the farm's 
effective 
marketing quota for 1990. 
(3) PAYMENT LEVEL.—For purposes of paragraph (1), the pay-
ment level for a commodity shall be equal to— 
(A) for peanuts, the price support level for quota peanuts 
or the price support level for additional peanuts, as 
applicable; 
104 STAT. 3966 
PUBLIC LAW 101-624—NOV. 28, 1990 
(B) for tobacco, the national average loan rate for the 
type of tobacco involved, or (if there is none) the market 
price, as determined under section 2244(aX2); and 
(C) for sugar beets and sugarcane, a level determined by 
the Secretary to be fair and reasonable in relation to the 
level of price support established for the 1990 crops of sugar 
beets and sugarcane, and that, insofar as is practicable, 
shall reflect no less return to the producer than under the 
1990 price support levels. 
0)) PREVENTED PLANTING CREDIT.— 
(1) IN GENERAL.—The Secretary shall provide prevented plant-
ing credit under subsection (a) with respect to acreage that 
producers on a farm were prevented from planting to the 1990 
crop of the commodity for harvest because of damaging weather 
or related condition in 1989 or 1990, as determined by the 
Secretary. 
(2) MAXIMUM ACREAGE.—Such acreage may not exceed the 
greater of— 
(A) a quantity equal to the acreage on the farm planted 
(or prevented from being planted due to a natural disaster 
or other condition beyond the control of the producers) to 
the commodity for harvest in 1989 minus acresige actusdly 
planted to harvest in 1990; or 
(B) a quantity equal to the average of the acreage on the 
farm planted (or prevented from being planted due to a 
natural disaster or other condition beyond the control of 
the producers) to the commodity for harvest in 1987, 1988, 
and 1989 minus acreage actually planted to the commodity 
for harvest in 1990. 
(3) ADJUSTMENTS.—The Secretary shall make appropriate 
adjustments in applying the limitations contained in paragraph 
(2) to take into account crop rotation practices of the producers 
and any change in quotas for the 1990 crops of tobacco. 
(c) LIMITATION.—Payments provided under subsection (a) for a 
crop of a commodity may not be made available to the producers on 
a farm unless such producers enter into an agreement to obtain 
multiperil crop insurance, to the extent required under section 2247. 
(d) SPECIAL RULES FOR PEANUTS.—Notwithstanding any other 
provision of law— 
(1) a deficiency in production of quota peanuts from a farm, as 
otherwise determined under this section, shall be reduced by 
the quantity of peanut poundage quota that was the basis of 
such anticipated production that has been transferred from the 
farm; 
(2) payments made under this section shall be made taking 
into account whether the deficiency for which the deficiency in 
production is claimed was a deficiency in production of quota or 
additional peanuts and the pajonent rate shall be established 
accordingly; and 
(3) the quantity of undermarketings of quota peanuts from a 
farm for the 1990 crop that may otherwise be claimed under 
section 358 of the Agricultural Adjustment Act of 1938 (7 U.S.C. 
1358) for purposes of future quota increases shall be reduced by 
the quantity of the deficiency of production of such peanuts for 
which pajnnent has been received under this section. 
(e) SPECIAL RULES FOR TOBACCO.—Notwithstanding any other 
provision of law— 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3967 
(1) the quantity of undermarketings of quota tobacco from a 
farm for the 1990 crop that may otherwise be claimed under 
section 317 or 319 of the Agricultural Adjustment Act of 1938 (7 
U.S.C. 1314c or 1314e) for purposes of future quota increeises 
shall be reduced by the quantity of the deficiency of production 
of such tobacco for which pajonent has been received under this 
section; and 
(2) disaster payments made to producers under this section 
may not be considered by the Secretary in determining the net 
losses of the Commodity Credit Corporation under section 
106A(d) of the Agricultural Act of 1949 (7 U.S.C. 1445-l(d)). 
(f) SPECIAL RULE FOR SUGARCANE.—For purposes of determining 
the total quantity of the 1990 crop of sugarcane that the producers 
on a farm are able to harvest, the Secretary shall make the deter-
mination based on the quantity of recoverable sugar. 
SEC. 
2
2
4
4
. 
SOYBEANS 
AND 
NONPROGRAM 
CROPS. 
(a) DISASTER PAYMENTS.— 
(1) IN GENERAL.— 
(A) ELIGIBILITY.—Effective only for the 1990 crops of soy-
beans and nonprogram crops, to the extent that assistance 
was not made avsulable under the Disaster Assistance Act 
of 1989 for a producer's losses, if the Secretary of Agri-
culture determines that, because of damaging weather or 
related condition in 1989 or 1990, the total quantity of the 
1990 crop of the commodity that the producers on a farm 
are able to harvest is less than— 
(i) with respect to soybeans and sunflowers, the result 
of multipljdng 60 percent (or in the case of producers 
who obtained crop insurance, if available, for the 1990 
crop year of the commodity under the Federal Crop 
Insurance Act (7 U.S.C. 1501 et seq.), 65 percent) of the 
State, area, or county )deld, adjusted for adverse 
weather conditions during the 1987, 1988, and 1989 
crop years, as determined by the Secretary, for such 
crop by the sum of the acreage planted for harvest and 
the acreage for which prevented planting credit is ap-
proved by the Secretary for such crop under subsection 
db); 
(ii) with respect to nonprogram crops (other than as 
provided in clauses (i) and (iii)), the result of multiply-
ing 60 percent (or in the case of producers who obtained 
crop insurance, if available, for the 1990 crop year of 
the commodity under the Federal Crop Insurance Act 
(7 U.S.C. 1501 et seq.), 65 percent) of the yield estab-
lished by the Commodity Credit Corporation under 
subsection (dX2) for such crop by the sum of the acreage 
planted for harvest and the acreage for which pre-
vented planting credit is approved by the Secretary for 
such crop under subsection (b); and 
(iii) with respect to crops covered in section 201(b) of 
the Agricultural Act of 1949 (7 U.S.C. 144603)), 60 per-
cent (or in the case of producers who obtained crop 
insurance, if available, for the 1990 crop year of the 
commodity under the Federal Crop Insurance Act (7 
U.S.C. 1501 et seq.), 65 percent) of the historical annual 
104 STAT. 3968 
PUBLIC LAW 101-624—NOV. 28, 1990 
yield of the producers for such crops, as determined by 
the Secretary, 
the Secretary shall make a disaster pajrment available to 
such producers. 
(B) PAYMENT RATE.—The payment shall be made to such 
producers at a rate equal to 65 percent of the applicable 
pa3mient level under paragraph (2), as determined by the 
Secretary, for any deficiency in production greater than 40 
percent for soybeans, sunflowers and for other nonprogram 
crops for the crop, except that in the case of producers who 
obtained crop insurance, if available, for the 1990 crop 
under the Federal Crop Insurance Act (7 U.S.C. 1501 et 
seq.), 35. 
(2) PAYMENT LEVEL.—For purposes of paragraph (1), the pay-
ment level for a commodity shall equal the simple average price 
received by producers of the commodity, as determined by the 
Secretary subject to paragraph (3), during the marketing years 
for the immediately preceding 5 crops of the commodity, exclud-
ing the year in which the average price was the highest and the 
year in which the average price was the lowest in such period. 
(3) CALCULATION OF PAYMENTS FOR DIFFERENT VARIETIES.— 
Regulations. 
(A) CROP-BY-CROP BASIS.—The Secretary shall make disas-
ter payments under this subsection on a crop-by-crop basis, 
with consideration given to markets and uses of the crops, 
under regulations issued by the Secretary. 
(B) DIFFERENT VARIETIES.—For purposes of determining 
the payment levels on a crop-by-crop basis, the Secretary 
shall consider as separate crops, and develop separate pay-
ment levels insofar as is practicable for, different varieties 
of the same commodity, and commodities for which there is 
a significant difference in the economic value in the 
market. 
(C) DOUBLE CROPPING.— 
(i) TREATED SEPARATELY.—In the case of a crop that is 
historically double cropped (including two crops of the 
same commodity) by the producers on a farm, the 
Secretary shall treat each cropping separately for pur-
poses of determining whether the crop was affected by 
damaging weather or related conditions and the total 
quantity of the crop that the producers are able to 
harvest. 
(ii) 
APPLICATION OF PARAGRAPH.—This paragraph 
shall not apply in the case of a replacement crop. 
(4) EXCLUSIONS FROM HARVESTED QUANTITIES.—For purposes of 
determining the total quantity of the 1990 nonprogram crop of 
the commodity that the producers on a farm are able to harvest 
under paragraph (1), the Secretary shall exclude— 
(A) commodities that cannot be sold in normal commer-
cial channels of trade; and 
(B) dockage, including husks and shells, if such dockage is 
excluded in determining 3delds under subsection (dX2). 
(b) PREVENTED PLANTING CREDIT.— 
(1) IN GENERAL.—The Secretary shall provide prevented plant-
ing credit under subsection (a) with respect to acreage that 
producers on a farm were prevented from planting to the 1990 
crop of the commodity for harvest because of damaging weather 
«>NI<^>^ 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3969 
or related condition in 1989 or 1990, as determined by the 
Secretary. 
(2) MAXIMUM ACREAGE.—Such acreage may not exceed the 
greater of— 
(A) a quantity equal to the acreage on the farm planted 
(or prevented from being planted due to a natural disaster 
or other condition beyond the control of the producers) to 
the commodity for harvest in 1989 minus acreage actually 
plgmted for harvest in 1990; or 
(B) a quantity equal to the average of the acreage on the 
* farm planted (or prevented from being planted due to a 
natural disaster or other condition beyond the control of 
the producers) to the commodity for harvest in 1987, 1988, 
and 1989 minus acreage actually planted to the commodity 
for harvest in 1990. 
(3) ADJUSTMENTS.—The Secretary shall make appropriate 
adjustments in appl3dng the limitations contained in paragraph 
(2) to take into account crop rotation practices of the producers. 
(c) LIMITATION.—Pa5anents provided under subsection (a) for a 
crop of a commodity may not be made available to the producers on 
a farm unless such producers enter into an agreement to obtain 
multiperil crop insurance, to the extent required under section 2247. 
(d) SPECIAL RULES FOR NONPROGRAM CROPS.— 
(1) DEFINITION OF NONPROGRAM CROP.—As used in this section, 
the term "nonprogram crop" means all crops for which crop 
insurance through the Federal Crop Insurance Corporation was 
available for crop year 1990, and other commercial crops 
(including ornamentals which shall include flowering shrubs, 
flowering trees, and field or contsiiner grown roses or turf and 
sweet potatoes for which such insurance was not available for 
crop year 1990), except that such term shall not include a crop 
covered under section 2241, 2242, or 2243, soybeans, or sun-
flowers. 
(2) FARM YIELDS.— 
(A) ESTABLISHMENT.—The Commodity Credit Corporation 
shall 
establish 
disaster 
program 
farm 
yields 
for 
nonprogrsun crops to carry out this section. 
(B) l^ovEN YIELDS AVAILABLE.—If the producors on a 
farm can provide satisfactory evidence to the Commodity 
Credit Corporation of actual crop yields on the farm for at 
least 1 of the immediately preceding 3 crop years, the yield 
for the farm shall be based on such proven yield. 
(C) PROVEN YIELDS NOT AVAILABLE.—If such data do not 
exist for any of the 3 preceding crop years, the Commodity 
Credit Corporation shall establish a yield for the farm by 
using a county aversige jdeld for the commodity, or by using 
other data available to it. 
(D) COUNTY AVERAGE YIELDS.—In establishing county 
average 3delds for nonprogram crops, the Commodity Credit 
CJorporation shall use the best available 
information 
concerning yields. Such information may include extension 
service records, credible nongovernmental studies, and 
yields in similar counties. 
(3) RESPONSIBIUTY OF PRODUCERS.—It shall be the responsibil-
ity of the producers of nonprogram crops to provide satisfactory 
evidence of 1990 crop losses resulting from damaging weather or 
104 STAT. 3970 
PUBLIC LAW 101-624—NOV. 28, 1990 
( 
related condition in 1989 or 1990 in order for such producers to 
obtain disaster pajonents under this section. 
SEC. 2245. CROP QUALITY REDUCTION DISASTER PAYMENTS. 
(a) IN GENERAL.—To ensure that all producers of 1990 crops 
covered under sections 2241 through 2244 are treated equitably, the 
Secretary of Agriculture may make additional disaster payments to 
producers of such crops who suffer losses resulting from the reduced 
quality of such crops caused by damaging weather or related condi-
tion in 1989 or 1990, as determined by the Secretary. 
Qo) EuGiBLE PRODUCERS.—If the Secretary determines to make 
crop quality disaster payments available to producers under subsec-
tion (a), producers on a farm of a crop described in subsection (a) 
shall be eligible to receive reduced quality disaster pajntnents only if 
such producers incur a deficiency in production of not less than 35 
percent and not more than 75 percent for such crop (as determined 
under section 2241, 2242, 2243, or 2244, as appropriate). 
(c) MAXIMUM PAYMENT RATE.—The Secretary shall establish the 
reduced quality disaster payment rate, except that such rate shall 
not exceed 10 percent, as determined by the Secretary, o
f
— 
(1) the established price for the crop, for commodities covered 
under section 2241; 
(2) the basic county loan rate for the crop (or a comparable 
price if there is no current basic county loan rate), for commod-
ities covered under section 2242; 
(3) the payment level under section 2243(a)(3), for commodities 
covered by section 2243; and 
(4) the payment level under section 2244(a)(2), for commodities 
covered under section 2244. 
(d) DETERMINATION OF PAYMENT.—The amount of payment to a 
producer under this section shall be determined by multiplying the 
payment rate established under subsection (c) by the portion of the 
actual harvested crop on the producer's farm that is reduced in 
quality by such natural disaster in 1989 or 1990, as determined by 
the Secretary. 
SEC. 2246. EFFECT OF FEDERAL CROP INSURANCE PAYMENTS. 
In the case of producers on a farm who obtained crop insurance 
for the 1990 crop of a commodity under the Federal Crop Insurance 
Act (7 U.S.C. 1501 et seq.), the Secretary of Agriculture shall reduce 
the amount of payments made available under this chapter for such 
crop to the extent that the amount determined by adding the net 
amount of crop insurance indemnity payment (gross indemnity less 
premium paid) received by such producers for the deficiency in the 
production of the crop and the disaster payment determined in 
accordance with this chapter for such crop exceeds the amount 
determined by multiplying— 
(1) 100 percent of the yield used for the calculation of disaster 
payments made under this chapter for such crop; by 
(2) the sum of the acreage of such crop planted to harvest and 
the acreage for which prevented planting credit is approved by 
the Secretary (or, in the case of disaster payments under section 
2241, the eligible acreage established under sections 2241(aXl) 
and 2241(a)(2XA)); by 
(3)(A) in the case of producers who participated in a produc-
tion adjustment program for the 1990 crop of wheat, feed grains. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3971 
upland cotton, extra long staple cotton, or rice, the established 
price for the 1990 crop of the commodity; 
(B) in the case of producers who did not participate in a 
production adjustment program for the 1990 crop of wheat, feed 
grains, upland cotton, extra long staple cotton, or rice, the basic 
county loan rate (or a comparable price, as determined by the 
Secretary, if there is no current beusic county loan rate) for the 
1990 crop of the commodity; 
(C) in the case of producers of sugar beets, sugarcane, peanuts, 
or tobacco, the pa3nnent level for the commodity established 
under section 2243(aX3); and 
(D) in the case of producers of soybeans or a nonprogram crop 
(as defined in section 2244(dXl)), the simple average price re-
ceived by producers of the commodity, as determined by the 
Secretary, during the marketing years for the immediately 
preceding 5 crops of the commodity, excluding the year in which 
the average price was the highest and the year in which the 
average price was the lowest in such period. 
SEC. 2247. CROP INSURANCE COVERAGE FOR THE 1991 CROPS. 
(a) REQUIREMENT.—Subject to the limitations under subsection (b), 
producers on a farm, to be eligible to receive a disaster pa3m[ient 
under this chapter, an emergency loan under subtitle C of the 
Consolidated Farm and Rural Development Act (7 U.S.C. 1961 et 
seq.) for crop losses due to damaging weather or related condition in 
1989 or 1990, or forgiveness of the repayment of advance deficiency 
pa5nnents under section 2241(b), must agree to obtain multiperil 
crop insurance under the Federal Crop Insurance Act (7 U.S.C. 1501 
et seq.) for the 1991 crop of the commodity for which such payments, 
loans, or forgiveness are sought. 
0)) LIMITATIONS.—Producers on a farm shall not be required to 
agree to obtain crop insurance under subsection (a) for a 
commodity— 
(1) unless such producers' deficiency in production, with re-
spect to the crop for which a disEister pajonent under this 
chapter otherwise may be made, exceeds 65 percent; 
(2) where, or if, crop insurance coverage is not available to the 
producers for the commodity for which the payment, loan, or 
forgiveness is sought; 
(3) if the producers' annual premium rate for such crop 
insurance is an amount greater than 125 percent of the average 
premium rate for insurance on that commodity for the 1990 
crop in the county in which the producers are located; 
(4) in any case in which the producers' annual premium for 
such crop insurance is an amount greater than 25 percent of the 
amount of the pa3anent, loan, or forgiveness sought; or 
(5) if the producers can establish by appeal to the county 
committee established under section 8(b) of the Soil Conserva-
tion and Domestic Allotment Act (16 U.S.C. 590(b)), or to the 
county committee established under section 332 of the Consoli-
dated Farm and Rural Development Act (17 U.S.C. 1982), as 
appropriate, that the purchase of crop insurance would impose 
an undue financial hardship on such producers and that a 
waiver of the requirement to obtain crop insurance should, in 
the discretion of the county committee, be granted. 
(c) IMPLEMENTATION.— 
104 STAT. 3972 
PUBLIC LAW 101-624—NOV. 28, 1990 
(1) COUNTY COMMITTEES.—The Secretary of Agriculture shall 
ensure (acting through the county committees established 
under section 8(b) of the Soil Conservation and Domestic Allot-
ment Act and located in the counties in which the assistance 
programs provided for under sections 2241 through 2245 are 
implemented and through the county committees established 
under section 332 of the Consolidated Farm and Rural Develop-
ment Act in counties in which emergency loans, as described in 
subsection (a), are made available) that producers who apply for 
assistance, as described in subsection (a), obtain multiperil crop 
insurance as required under this section. 
(2) OTHER SOURCES.—Each producer who is subject to the 
requirements of this section may comply with such require-
ments by providing evidence of multiperil crop insurance cov-
erage from sources other than through the county committee 
office, as approved by the Secretary. 
Regulations. 
(3) COMMISSIONS.—The Secretary shall provide by regulation 
Brokers. 
for 
a reduction in the commissions paid to private insurance 
agents, brokers, or companies on crop insurance contracts en-
tered into under this section sufficient to reflect that such 
insurance contracts principally involve only a servicing func-
tion to be performed by the agent, broker, or company, 
(d) REPAYMENT OF BENEFITS.—Notwithstanding any other provi-
sion of law, if (prior to the end of the 1991 crop year for the 
commodity involved) the crop insursmce coverage required of the 
producer under this section is canceled by the producer, the 
producer— 
(1) shall make immediate repayment to the Secretary of any 
disaster pajonent or forgiven advance deficiency payment that 
the producer otherwise is required to repay; and 
(2) shall become immediately liable for full repayment of all 
principal and interest outstanding on any emergency loan 
described in subsection (a) made subject to this section. 
SEC. 2248. CROPS HARVESTED FOR FORAGE USES. 
Not later than 45 days after funds are appropriated to carry out 
this chapter, the Secretary of Agriculture shall announce the terms 
and conditions by which producers on a farm may establish a 1990 
yield with respect to crops that will be harvested for silage and other 
forage uses. 
SEC. 2249. PAYMENT LIMITATIONS. 
(a) LIMITATION.—Subject to subsections (b) and (c), the total 
amount of pajonents that a person shall be entitled to receive under 
one or more of the programs established under this chapter may not 
exceed $100,000. 
(b) No DOUBLE BENEFITS.—No person may receive disaster pay-
ments under this chapter to the extent that such person receives a 
livestock emergency benefit for lost feed production in 1990 under 
section 606 of the Agricultural Act of 1949 (7 U.S.C. 1471d). 
(c) COMBINED LIMITATION.— 
(1) IN GENERAL.—No person may receive any payment under 
this chapter or benefit under title VI of the Agricultural Act of 
1949 (7 U.S.C. 1471 et seq.) for livestock emergency losses suf-
fered in 1990 if such payment or benefit will cause the combined 
total amount of such pa3nments and benefits received by such 
person to exceed $100,000. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3973 
(2) ELECTION.—If a producer is subject to paragraph (1), the 
person may elect (subject to the benefits limitations under 
section 609 of the Agricultural Act of 1949 (7 U.S.C. 1471g) 
whether to receive the $100,000 in such pajmaents, or such 
livestock emergency benefits (not to exceed $50,000), or a com-
bination of payments and benefits specified by the person, 
(d) REGULATIONS.—The Secretary of Agriculture shall issue 
regulations— 
(1) defining the term "person" for the purposes of this section 
and section 2266, which 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); and 
(2) prescribing such rules as the Secretary determines nec-
essary to ensure a fsdr and reasonable appUcation of the limita-
tions established under this section. 
SEC. 2250. SUBSTITUTION OF CROP INSURANCE PROGRAM YIELDS. 
(a) IN GENERAL.—Notwithstanding any other provision of this 
chapter, the Secretary of Agriculture may permit each eligible 
producer (as defined in subsection (d)) of a 1990 crop of a commodity 
who has obtained multiperil crop insurance for such crop (or, as 
provided in subsection (c), who obtained multiperil crop insurance 
for the producer's 1989 crop of such commodity) under the Federal 
Crop Insurance Act (7 U.S.C. 1501 et seq.) to substitute, at the 
discretion of the producer, the crop insurance jdeld for such crop, as 
established under such Act, for the farm yield otherwise assigned to 
the producer under this chapter, for the purposes of determining 
such producer's eligibility for a disaster pajmient on the 1990 crop 
under this chapter and the amount of such payment. 
(b) ADJUSTMENT OF ADVANCED DEFICIENCY PAYMENTS.— 
(1) IN GENERAL.—Notwithstanding any other provision of this 
chapter, if an eligible producer of wheat, feed grains, cotton, or 
rice elects to substitute 5delds for such producer's 1990 crop 
under subsection (a), the producer's eligibility for a waiver or 
repayment of an advance deficiency payment on such crop 
under this chapter shall be adjusted as provided in paragraph 
(2). 
(2) AMOUNT.—The amount of production of such crop on 
which the producer otherwise would be eligible for waiver of 
repa3maent of advance deficiency payments under this chapter 
shall be reduced by an amount of production equal to the 
difference between— 
(A) the amount of production eligible for disaster pay-
ments under this chapter using a substituted yield under 
this section; and 
(B) the amount of production that would have been eli-
gible for disaster pa3anents using the farm program pay-
ment yield otherwise assigned to the producer under this 
chapter. 
(c) MULTIPERIL CROP INSURANCE NOT AVAILABLE.—A producer 
may use the crop insurance yield for the producer's 1989 crop of a 
commodity for purposes of substituting }delds under subsection (a) if 
the producer demonstrates to the Secretary that, through no fault of 
the producer, multiperil crop insurance under the Federal Crop 
Insurance Act was not made available to the producer for the 
producer's 1990 crop of the commodity. 
104 STAT. 3974 
PUBLIC LAW 101-624—NOV. 28, 1990 
(d) DEFINITION OF EUGIBLE PRODUCER.—For purposes of this sec-
tion, the term "eligible producer" means a producer of the 1990 crop 
of wheat, feed grains, upland cotton, extra long staple cotton, rice, or 
soybeans. 
SEC. 2251. DEFINITIONS. 
As used in this chapter: 
(1) DAMAGING WEATHER.—The term "damaging weather" in-
cludes but is not limited to drought, hail, excessive moisture, 
freeze, tornado, hurricane, earthquake, or excessive wind, or 
any combination thereof. 
(2) RELATED CONDITION.—The term "related condition" in-
cludes but is not limited to insect infestations, plant diseases, or 
other deterioration of a crop of a commodity, including 
aflatoxin, that is accelerated or exacerbated naturally as a 
result of damaging weather occurring prior to or during 
harvest. 
Subchapter B—Orchards 
SEC. 2255. ELIGIBILITY. 
(a) Loss.—Subject to the limitation in subsection (b), the Secretary 
of Agriculture shall provide assistance, as specified in section 2256, 
to eligible orchardists that planted trees for commercial purposes 
but lost such trees as a result of freeze, earthquake, or related 
condition in 1990, as determined by the Secretary. 
0)) LIMITATION.—An eligible orchardist shall qualify for assistance 
under subsection (a) only if such orchardist's tree mortality, as a 
result of the natural disaster, exceeds 35 percent (adjusted for 
normal mortality). 
SEC. 2256. ASSISTANCE. 
The assistance provided by the Secretary of Agriculture to eligible 
orchardists for losses described in section 2255 shall consist of 
either— 
(1) reimbursement of 65 percent of the cost of replanting trees 
lost due to freeze, earthquake, or related condition in 1990 in 
excess of 35 percent mortality (adjusted for normal mortality); 
or 
(2) at the discretion of the Secretary, sufficient seedlings to 
reestablish the stand. 
SEC. 2257. LIMITATION ON ASSISTANCE. 
(a) LIMITATION.—The total amount of pa3mients that a person 
shall be entitled to receive under this chapter may not exceed 
$25,000, or an equivalent value in tree seedlings. 
(b) REGULATIONS.—The Secretary of Agriculture shall issue 
regulations— 
(1) defining the term "person" for the purposes of this chap-
ter, which 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) and the 
Disaster Assistance Act of 1988 (7 U.S.C. 1421 note); and 
(2) prescribing such rules as the Secretary determines nec-
essary to ensure a fair and reasonable application of the limita-
tion established under this section. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3975 
SEC. 2258. DEFINITION. 
As used in this chapter, the term "eUgible orchardist" means a 
person who produces annual crops from trees for commercial pur-
poses and owns 500 acres or less of such trees. 
SEC. 2259. DUPLICATIVE PAYMENTS. 
The Secretary of Agriculture shall establish guidelines to ensure 
that no person receives duplicative payments under this chapter and 
the forestry incentives program, agricultural conservation program, 
or other Federal program. 
Subchapter C—Forest Crops 
SEC. 2261. ELIGIBILITY. 
(a) Loss.—Subject to the limitation in subsection (b), the Secretary 
of Agriculture shall provide assistance, as specified in section 2262, 
to eligible tree farmers that planted tree seedlings in 1989 or 1990 
for commercial purposes but lost such seedlings as a result of 
drought, earthquake, or related condition in 1990, as determined by 
the Secretary. 
(b) LIMITATION.—An eligible tree farmer shall qualify for assist-
ance under subsection (a) only if such tree farmer's tree seedling 
mortality, as a result of the natural disaster, exceeds 35 percent 
(adjusted for normal mortality). 
SEC. 2262. ASSISTANCE. 
The assistance provided by the Secretary of Agriculture to eligible 
tree farmers for losses described in section 2261 shall consist of 
either— 
(1) reimbursement of 65 percent of the cost of replanting 
seedlings lost due to drought, earthquake, or related conditions 
in 1990 in excess of 35 percent mortality (adjusted for normal 
mortality); or 
(2) at the discretion of the Secretary, sufficient tree seedlings 
to reestablish the stand. 
SEC. 2263. LIMITATION ON ASSISTANCE. 
(a) LIMITATION.—The total amount of payments that a person 
shall be entitled to receive under this chapter may not exceed 
$25,000, or an equivalent value in tree seedlings. 
(b) REGULATIONS.—The Secretary of Agriculture shall issue regu-
lations— 
(1) defining the term "person" for the purposes of this chap-
ter, which shall conform, to the extent practicable, to the 
regulations defining the term "person" issued under section 
1001 of the Food Security Act of 1985 and the Disaster Assist-
ance Act of 1988; and 
(2) prescribing such rules as the Secretary determines nec-
essary to ensure a fair and reasonable application of the limita-
tion established under this section. 
SEC. 2264. DEFINITION. 
As used in this chapter, the term "eligible tree farmer" means a 
person who grows trees for harvest for commercial purposes and 
owns 1,000 acres or less of such trees. 
104 STAT. 3976 
PUBLIC LAW 101-624—NOV. 28, 1990 
SEC. 2265. DUPLICATIVE PAYMENTS. 
The Secretary of Agriculture shall establish guidelines to ensure 
that no person receives duplicative pa3anents under this chapter and 
the forestry incentives program, agricultural conservation program, 
or other Federal program. 
Subchapter D—Administrative Provisions 
SEC. 2266. INELIGIBILITY. 
(a) GENERAL RULE.—A person who has qualifjdng gross revenues 
in excess of $2,000,000 annually, as determined by the Secretary of 
Agriculture, shall not be eligible to receive any disaster payment or 
other benefits under this subchapter. 
0)) QUALIFYING GROSS REVENUES.—For purposes of this section, 
the term "qualif3ring gross revenues" means— 
(1) if a majority of the person's annual income is received 
from farming, ranching, and forestry operations, the gross reve-
nue from the person's farming, ranching, and forestry oper-
ations; and 
(2) if less than a majority of the person's annual income is 
received from farming, ranching, and forestry operations, the 
person's gross revenue from all sources. 
SEC. 2267. TIMING AND MANNER OF ASSISTANCE. 
(a) TIMING OF ASSISTANCE.— 
(1) ASSISTANCE MADE AVAILABLE AS SOON AS PRACTICABLE.— 
Subject to paragraph (2), the Secretary of Agriculture shall 
make disaster assistance available under this subchapter as 
soon as practicable after the date on which appropriations are 
made available to carry out this chapter. 
(2) COMPLETED APPUCATION.—No pajnnent or benefit provided 
under this subchapter shall be payable or due until such time as 
a completed application for a crop of a commodity therefor has 
been approved. 
db) MANNER.—The Secretary may make pa3rments available under 
chapter 1 in the form of cash, commodities, or commodity certifi-
cates, as determined by the Secretary. 
SEC. 2268. COMMODITY CREDIT CORPORATION. 
(a) USE.—The Secretary of Agriculture shall use the funds, facili-
ties, and authorities of the Commodity Credit Corporation in carry-
ing out this chapter. 
Qoi) EXISTING AUTHORITY.—The authority provided by this sub-
chapter shall be in addition to, and not in place of, any authority 
granted to the Secretary or the Commodity Credit Corporation 
under any other provision of law. 
SEC. 2269. EMERGENCY LOANS. 
Section 32103) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 198103)) shall not apply to persons who otherwise would 
be eligible for an emergency loan under subtitle C of such Act, if 
such eligibility is the result of damage to an annual crop planted for 
harvest in 1988. 
SEC. 2270. REGULATIONS. 
The Secretary of Agriculture or the Commodity Credit Corpora-
tion, as appropriate, shall issue regulations to implement this chap-
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3977 
ter as soon as practicable after the date on which appropriations are 
made available to carry out this chapter, without regsird to the 
requirement for notice and public participation in rule making 
prescribed in section 553 of title 5, United States Code, or in any 
directive of the Secretary. 
Subchapter E—Appropriations 
SEC. 2271. AUTHORIZATION OF APPROPRIATIONS. 
Any benefits or assistance (including the foregiveness of unearned 
advanced deficiency payments of any emergency loans) made avail-
able under this chapter shall be provided only to the extent provided 
for in advance in appropriations Acts. To carry out this chapter 
there are authorized to be appropriated such sums as may be 
necessary in each of the fiscal years 1991 and 1992. 
SEC. 2272. PRORATION OF BENEFITS. 
Any funds made available for canying out this chapter in appro-
priations Acts shall be prorated to £dl producers eligible for assist-
ance under this chapter. 
CHAPTER 4—ASSISTANCE FOR BIG HORN RIVER 
DRAINAGE SYSTEM 
SEC. 2275. DISASTER ASSISTANCE TO PRODUCERS ON THE BIG HORN Wyoming. 
RIVER DRAINAGE SYSTEM LOCATED ON THE WIND RIVER 
INDIAN RESERVATION. 
(a) IN GENERAL.—Effective only for providers on a farm who 
suffered losses due to drought induced by a lack of water as a result 
of Indian Tribal water rights adjudication affecting producers on 
that portion of the Big Horn River drainage system located on the 
Wind River Indian Reservation, Wyoming, for the 1990 crop of 
wheat, barley, oats, grass hay, and alfalfa hay, subject to subsection 
(b), the Secretary of Agriculture shall make disaster assistance 
available to such producers under similar terms and conditions as 
are prescribed under titles I and III of the Disaster Assistance Act of 
1989 (7 U.S.C. 1421 note, 1961 note, and 1941 note) for providing 
disaster assistance to producers for the 1989 crop of the commodity, 
except that the assistance shall be limited to a total amount of 
$250,000. 
O
t
>
) ADMINISTRATION.—Titles I and III of the Disaster Assistance 
Act of 1989 shall apply to assistance provided under this section, 
except that for purposes of providing assistance under this section— 
(1) terms and conditions of programs established for a crop 
referred to in subsection (a) shall apply to such assistance, 
including crop years, production adjustment programs, yields, 
acreage bases, established prices, advance deficiency pajmients, 
loan rates, crop insurance indemnities, and livestock emergency 
benefits; 
(2) producers shall not be required to obtain multiperil crop 
insurance, as a condition of obtaining assistance under this 
section; 
(3) in section 1010)X4), for purposes of this section only— 
(A) "1990 crops" shall be substituted for "1989 crops"; 
and 
104 STAT. 3978 
PUBLIC LAW 101-624—NOV. 28, 1990 
(B) "July 31, 1991" shall be substituted for "July 31, 
1990"; 
(4) in section 102(bX2XA), for purposes of this section only 
"1989 minus acreage actually planted to the commodity for 
harvest in 1990" shall be substituted for "1988 minus acreage 
actusdly planted to the commodity for harvest in 1989"; 
(5) in section 10205X2XB), for purposes of this section "1987, 
1988, and 1989, minus acreage actually planted to the commod-
ity for harvest 1989" shall be substituted for "1986, 1987, and 
1988 minus acreage actually planted to the commodity for 
harvest in 1989"; and 
(6) in section 152(aX2), for purposes of this section "180 days 
after the date of enactment of the Food, Agriculture, Conserva-
tion, and Trade Act of 1990" shall be substituted for "March 31, 
1990". 
(c) DEFERRAL ON REPAYMENTS.—The producers on a farm as speci-
fied in subsection (a) may elect, at the producer's option, to request 
and receive a 12-month deferral on payments of principal and 
interest due on (farm loans) insured or underwritten by the appro-
priate agency of the United States. The request for deferral shall be 
made in writing to the administrator of the applicable farm loan 
program and must be sent by certified mail to the nearest regional 
office. Written requests for deferral under subsection (c) shall be 
made within 60 days of the date of enactment of this Act. 
Subtitle C—Miscellaneous Provisions 
42 u s e 5177a. 
SEC. 2281. EMERGENCY GRANTS TO ASSIST LOW-INCOME MIGRANT AND 
SEASONAL FARMWORKERS. 
(a) IN GENERAL.—The Secretary of Agriculture may make grants, 
not to exceed $20,000,000 annually, to public agencies or private 
organizations with tax exempt status under section 501(cX3) of the 
Internal Revenue Code of 1986, that have experience in providing 
emergency services to low-income migrant and seasonal farm-
workers where the Secretary determines that a local. State or 
national emergency or disaster has caused low-income migrant or 
seasonal farmworkers to lose income, to be unable to work, or to 
stay home or return home in anticipation of work shortages. Emer-
gency services to be provided with assistance received under this 
section may include such types of assistance as the Secretary of 
Agriculture determines to be necessary and appropriate. 
Ot)) DEFINITION.—For the purposes of this section, the term "low-
income migrant or seasonal farmworker" means an individual— 
(1) who has, during any consecutive 12 month period within 
the preceding 24 month period, performed farm work for wages; 
(2) who has received not less than one-half of such individual's 
total income, or been employed at least one-half of total work 
time in farm work; and 
(3) whose annual family income within the 12 month period 
referred to in paragraph (1) does not exceed the higher of the 
poverty level or 70 percent of the lower living standard income 
level. 
(c) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 
be appropriated such sums as may be necessary to carry out this 
section. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3979 
TITLE XXIII—RURAL DEVELOPMENT 
KopmeT" 
Act of 1990. 
SEC. 2301. SHORT TITLE. 
'
^ ^^ 
^^^^ ^°^-
This title may be cited as the "Rural Economic Development Act 
of 1990". 
Subtitle A—Reorganization of the Department 
of Agriculture 
SEC. 2302. RURAL DEVELOPMENT ADMINISTRATION. 
7 USC 2006f. 
(a) AMENDMENTS TO THE CONSOUDATED FARM AND RURAL DEVELOP-
MENT ACT.—The Consolidated Farm and Rural Development Act (7 
U.S.C. 1921 et seq.) is gmiended— 
(1) by adding after the sections added thereto by subtitle A of 
title XVIII of this Act the following new section: 
"SEC. 364. RURAL DEVELOPMENT ADMINISTRATION. 
"(a) ESTABUSHMENT.—There is established in the Department of 
Agriculture the Rural Development Administration, which shall be 
headed by an Administrator appointed by the Secretary. 
"(\i) ADMINISTRATION.—Except as provided in subsection (c), or as 
otherwise provided in this section, the Secretary shall carry out this 
Act through the Farmers Home Administration. 
"(c) EXCEPTIONS.—The Secretary shall carry out section 303 (in the 
case of loans made for purposes specified in paragraphs (2) and (3) of 
section 303(a)), section 304(b), section 306(a), section 306B, section 
310A, section 310B, section 312(a) (in the case of loans made for the 
purposes specified in paragraphs (5) and (6) of section 312(a)), section 
1323 of the Food Security Act of 1985 (7 U.S.C. 1932 note), title VI of 
the Rural Development Act of 1972, and such other rural develop-
ment programs as the Secretary determines appropriate through 
the Rural Development Administration. 
"(d) REFERENCES.—Any reference in any law, regulation, or order 
in effect immediately before the date of enactment of this section to 
the Farmers Home Administration or to the Administrator of the 
Farmers Home Administration or of the Farmers Home Administra-
tion relating to any function, power, or duty that is, on or after such 
date, a function, power, or duty of the Rural Development Adminis-
tration or the Administrator of the Rural Development Administra-
tion, shall be deemed to be a reference to the Rural Development 
Administration or to the Administrator of the Rural Development 
Administration, as the case may be. 
"(e) EFFECT ON PENDING PROCEEDINGS AND PARTIES TO SUCH 
PROCEEDINGS.— 
"(1) NoNABATEMENT OF ACTIONS.—This sectioD does not abate 
any proceeding commenced— 
"(A) by or against any entity any function of which is 
transferred by this section; or 
"(B) by or against any officer of any entity referred to in 
subparagraph (A) in the official capacity of such individual 
as such an officer. 
"(2) EFFECT ON PARTIES.—If an officer of the Farmers Home 
Administration, in the official capacity of such officer, is a party 
to a proceeding pending on the date of enactment of this section, 
104 STAT. 3980 
PUBLIC LAW 101-624—NOV. 28, 1990 
and under this section the officer or any function of the officer 
is transferred to the Rural Development Administration, 
Department of Agriculture, then such action shall be continued 
with the Secretary or the Administrator, Rural Development 
Administration, or other appropriate officer of the Department 
substituted or added as a party. 
"(3) TRANSFER OF CERTAIN RIGHTS OF FARMERS HOME ADMINIS-
TRATION T
O RURAL DEVELOPMENT ADMINISTRATION.—The rights, 
interests, obligations, and duties of the Farmers Home Adminis-
tration arising before the date of enactment of this section from 
any loan made, insured, or guaranteed, or any grant or contract 
made, by the Farmers Home Administration in the exercise of 
its functions shall— 
"(A) with respect to any function to be exercised on or 
after such date by the Farmers Home Administration 
under subsection (b), continue to be vested in the Farmers 
Home Administration; and 
"(B) with respect to any function to be exercised on or 
after such date by the Rural Development Administration 
under subsection (c), be vested in the Rural Development 
Administration. 
"(f) COMPENSATION OF ADMINISTRATOR.—The Administrator of the 
Rural Development Administration shall be compensated in accord-
ance with subchapter VIII of chapter 53 of title 5, United States 
Code."; and 
7 use 1929. 
(2) in section 309(e)— 
(A) by inserting "and the Rural Development Administra-
tion, in proportion to such charges collected in connection 
with the insurance of loans by such agency" after "Farmers 
Home Administration"; and 
(B) by striking "expenses." and inserting "expenses for 
such agency.". 
7 use 2006f 
(b) FACILITATION OF TRANSFER OF FUNCTIONS.—(1) Notwithstand-
note. 
ing the provisions of section 331 of the Consolidated Farm and Rural 
Development Act, as soon as practicable, but in no case later than 
180 days after the date of enactment of this section, the Secretary 
shall transfer to the Rural Development Administration the powers, 
duties, and assets of the agencies, offices, and other entities in the 
Department of Agriculture, or elements thereof, related to the 
performance of rural development functions, including, but not 
limited to, the agencies, offices, and other entities in the Depart-
ment of Agriculture, or elements thereof, that administer sections 
303 (in the case of loans made for purposes specified in paragraphs 
(2) and (3) of subsection (a) of section 303), 30403), 306(a), 306B, 310A, 
310B, and section 312(a) (in the case of loans made for the purposes 
specified in paragraphs (5) and (6) of section 312(a)) of the Consoli-
dated Farm and Rural Development Act, section 1323 of the Food 
Security Act of 1985 (7 U.S.C. 1932 note), title VI of the Rural 
Development Act of 1972, and such other rural development pro-
grams as the Secretary determines appropriate. 
(2) INCIDENTAL TRANSFERS.—The Secretary shall make such deter-
minations, and shall transfer such personnel from the Farmers 
Home Administration, as may be necessary or appropriate with 
regard to the functions transferred to the Rural Development 
Administration under this section or the amendments made by this 
section. The Secretary shall also make such additional incidental 
dispositions of personnel, assets, liabilities, contracts, property. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3981 
records, and unexpended balances of appropriations, authorizations, 
allocations, and other funds held, used, arising from, available, or to 
be made available in connection with the functions trsmsferred by 
this section or the amendments made by this section, as the Sec-
retary may deem necessary to accomplish the purposes of this 
section. 
(3) 
EFFECTIVE AND EFFICIENT TRANSFER OF AUTHORITY.—The 
Administrator of the Farmers Home Administration and the Sec-
retary shall take whatever steps are necessary to assure the effec-
tive and efficient transfer of authority as provided for in this 
section. 
SEC. 2303. CONFORMING AMENDMENTS. 
(a) Section 331 of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1981) is amended— 
(1) in the first sentence— 
(A) by striking "For the purposes of this title and" and 
inserting "In accordance with section 359, for purposes of 
this title, and"; and 
(B) by inserting before the period ", or may assign and 
transfer such powers, duties, and assets to the Rural Devel-
opment Administration as provided by law for that office"; 
(2) in subsection (d), by inserting "or the Rural Development 
Administration" after "Farmers Home Administration"; and 
(3) in subsection (h) (as so redesignated by section 1805 of this 
Act), by inserting "Rural Development Administration under 
this title or by the" before "Farmers Home Administration" 
each place such term appears. 
(b) Section 331A of such Act (7 U.S.C. 1981a) is amended by 
inserting "or by the Rural Development Administration" imme-
diately after "Farmers Home Administration". 
(c) Section 335 of such Act (7 U.S.C. 1985) is amended— 
(1) in subsection (a), by inserting "or the Rural Development 
Administration" sifter "Farmers Home Administration"; and 
(2) in subsection (cXD, by inserting "or the Rural Develop-
ment Administration" after "Farmers Home Administration". 
(d) Section 338(a) of such Act (7 U.S.C. 1988(a)) is amended by 
inserting "or the Rural Development Administration" after "Farm-
ers Home Administration". 
(e) Sections 657, 658,1006, and 1014 of title 18, United States Code, 
are each amended by striking "Farmers' Home Administration" and 
inserting "Farmers Home Administration, the Rural Development 
Administration". 
(fXD Section 623(cX2) of the Community Economic Development 
Act of 1981 (42 U.S.C. 9812(cX2)) is amended by inserting ", or the 
Rural 
Development 
Administration" 
after 
"Farmers 
Home 
Administration". 
(2) Section 628 of such Act (42 U.S.C. 9817) is amended— 
(A) by amending the heading to read as follows: 
"DEPARTMENT OF AGRICULTURE; RURAL DEVELOPMENT 
ADMINISTRATION PROGRAMS"; and 
(B) by inserting ", or of the Rural Development Administra-
tion" after "of the Farmers Home Administration". 
104 STAT. 3982 
PUBLIC LAW 101-624—NOV. 28, 1990 
Subtitle B—Coordination of Rural 
Development Efforts 
CHAPTER 1—GENERAL PROVISIONS 
7 use 2007. 
SEC. 2310. GENERAL PROVISIONS. 
(a) APPUCATION FOR PARTICIPATION.—If a State desires to partici-
pate in the program established in chapter 2 of this subtitle or the 
program established in sections 365 and 366 of the Consolidated 
Farm and Rural Development Act (as added by chapter 3 of this 
subtitle), the Governor of the State may submit to the Secretary of 
Agriculture (in this section referred to as the "Secretary") an ap-
plication therefor. 
(b) SELECTION OF STATES.— 
(1) RURAL INVESTMENT PARTNERSHIPS.—The Secretary shall 
select not more than 5 States to which to make chapter 2 
applicable during any particular period, to the extent of qualify-
ing applications therefor. 
(2) RURAL ECONOMIC DEVELOPMENT REVIEW PANELS.—The Sec-
retary shall select not more than 5 States to which to make 
sections 365 and 366 of the Consolidated Farm and Rural Devel-
opment Act applicable during any particular period, to the 
extent of qualif3dng applications therefor. 
(c) DURATION OF PROJECTS,— 
(1) RURAL INVESTMENT PARTNERSHIPS.—Chapter 2 shall apply 
to any State selected by the Secretary under subsection (bXD 
until September 30,1996. 
(2) RURAL ECONOMIC DEVELOPMENT REVIEW PANELS.—Chapter 
3 shall apply to any State selected by the Secretary under 
subsection (bX2) until September 30,1996. 
(d) EFFECTIVE DATE.—Chapter 2 of this subtitle and sections 365, 
366, 367, and 368(b) of the Consolidated Farm and Rural Develop-
ment Act (as added by chapter 3 of this subtitle) shall take effect on 
October 1,1991. 
CHAPTER 2—RURAL INVESTMENT PARTNERSHIPS 
7 use 2007a. 
SEC. 2311. DEFINITIONS. 
As used in this chapter: 
(1) APPROVED LOCAL BUSINESS.—The term "approved local 
business" means a local business that is approved to receive 
assistance from the revolving fund of an eligible entity as 
provided under the provisions of this chapter. 
(2) EUGIBLE ENTITY.—The term "eligible entity" means an 
entity— 
(A) that is— 
(i) a nonprofit private corporation or a public entity 
that is— 
(I) the governing body of each public regional 
organization (such as the governing body of an 
economic development district) that is chartered or 
otherwise organized under State law for the pur-
pose of promoting economic development; 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3983 
r 
(II) the agency of each State that is primarily 
responsible for rural economic development pro-
grams within the State; 
(III) the governing body of a county or other 
political subdivision of a State; 
(IV) the governing body of a town or township 
within a State; or 
(V) an incorporated public organization or a non-
profit private community development corpora-
tion, or similar nonprofit private organization, that 
is chartered or otherwise orgginized under State 
law for the purpose of promoting economic develop-
ment; or 
(ii) an Indian tribe (as defined in section 4(b) of the Indian 
Self-Determination and Education Assistance Act (25 U.S.C. 
450b)), an Indian organization or entity chartered under the 
Act of June 18, 1934 (25 U.S.C. 1001 et seq.), commonly 
known as the "Indian Reorganization Act", or any tribal 
organization (as defined in the section 4(c) of the Indian 
Self-Determination and Education Assistance Act (25 U.S.C. 
450b(c))); and 
(B)that— 
(i) possesses the powers reasonably necessary to per-
form the functions and activities described in this chap-
ter; 
(ii) has a professional staff and management ability 
(including adequate accounting, legal, and business 
servicing abilities or experience); and 
(iii) meets any other requirements established by the 
Board to carry out this chapter. 
(3) INVESTMENT BOARD.—The terms "Investment Board" and 
"Board" mean the Rural Partnerships Investment Board estab-
lished in section 2312(a). 
(4) LOCAL BUSINESS.—The term "local business" means— 
(A) a business concern, located in a rural area, that— 
(i) is incorporated or otherwise organized under State 
law so that financial records and accounts are main-
tained regarding the business concern separate and 
apart from records and accounts not related to that 
business concern; and 
(ii) is independently or cooperatively (not including 
borrowers under the Rurgil Electrification Act of 1936) 
owned and operated as defined by the Board; or 
(B) an individual who plans to organize and operate an 
entity of the type described in subparagraph (A), 
that meets any additional requirements that are established by 
the Board to carry out the intent of this Act. 
(5) RURAL AREA.—The term "rural area" means all territory 
of a State that is not within the outer boundary of any city or 
town having a population of 20,000 or more based on the latest 
decennial census of the United States, and any neighboring 
urbanized area as defined by the Board. 
(6) RURAL FUND.—The terms "Rural Fund" and "Fund" mean 
the Rural Business Investment Fund established under section 
2313(a). 
(7) SECRETARY.—The term "Secretary" means the Secretary of 
Agriculture, unless otherwise specified in this chapter. 
104 STAT. 3984 
PUBLIC LAW 101-624—NOV. 28, 1990 
(8) STATE.—The term "State" means any State to which the 
Secretary has made this chapter applicable under section 
2310(bXl). 
7 use 2007b. 
SEC. 2312. RURAL PARTNERSHIPS INVESTMENT BOARD. 
(a) EsTABUSHMENT.—There is established a "Rural Partnerships 
Investment Board" to provide lines of credit to eligible entities to 
enable such entities to establish, maintain, or expand revolving 
funds that are used to make or guarantee loans, or to make capital 
investments in new or expanding local businesses in conjunction 
with loans or investments made by depository institutions (as de-
fined in section 3(cXl) of the Federal Deposit Insurance Act (12 
U.S.C. 1813(cXl)), State owned banks whose deposits are backed by 
the full faith and credit of the State, or community development 
credit unions chartered by the National Credit Union Administra-
tion under the Federal Credit Union Act (12 U.S.C. 1751 et seq.). 
(b) BOARD OF DIRECTORS.— 
(1) IN GENERAL.—The Board of Directors of the Investment 
Board shall consist of— 
(A) the Administrator of the Rural 
Electrification 
Administration; 
(B) the Administrator of the Rural Development Adminis-
tration; 
(C) the Administrator of the Extension Service of the 
Department of Agriculture; and 
(D) two members who shall be— 
(i) experienced in rural development and related mat-
ters; 
(ii) appointed by the President with the advice and 
consent of the Senate; and 
(iii) from different political parties. 
(2) CHAIRPERSON.—The Chairperson of the Board shall be the 
Administrator of the Rural Development Administration. 
(3) VACANCIES.—Vacancies on the Board shall be filled in the 
same manner as the vacant position was previously filled. 
(4) CHIEF EXECUTIVE OFFICER.—A chief executive officer shall 
be selected by the Board and shall serve at the pleasure of the 
Board. 
(5) QUORUM.—A quorum shall consist of three members of the 
Board. All decisions made by the Board shall require an 
affirmative vote of a majority of the members. 
(6) COMPENSATION.—Members of the Board— 
(A) specified under subparagraphs (A), (B), and (C) of 
paragraph (1) shall receive reasonable allowances for nec-
essary expenses of travel, lodging, and subsistence incurred 
in attending meetings and other activities of the Invest-
ment Board, as set forth in the bylaws issued by the Board 
of Directors, except that such level shall not exceed the 
maximum fixed by subchapter 1 of chapter 57 of title 5, 
United States Code, for officers and employees of the 
United States; and 
(B) appointed under subparagraph (D) of paragraph (1) 
shall receive compensation for the time devoted to meetings 
and other activities at a daily rate not to exceed the daily 
rate of compensation prescribed for level III of the Execu-
tive Schedule under section 5314 of title 5, United States 
Code, and reasonable allowances for necessary expenses of 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3985 
travel, lodging, and subsistence incurred in attending meet-
ings and other activities of the Investment Board, as set 
forth in the bylaws issued by the Board of Directors, except 
that such level shall not exceed the maximum fixed by 
subchapter 1 of chapter 57 of title 5, United States Code, for 
officers and employees of the United States. 
(7) RULES AND RECORDS.—The Board shall adopt such rules 
and procedures as it may consider appropriate for the trans-
action of the business of the Investment Board, and shall keep 
permanent and accurate records and minutes of its acts and 
proceedings. 
(c) POWERS OF THE INVESTMENT BOARD.—The Investment Board 
shall be a body corporate that shall have the power to— 
(1) operate under the direction of its Board; 
(2) adopt, alter, and use a corporate seal, which shall be 
judicially noted; 
(3) provide for one or more officers, employees, and sigents, as 
may be necessary, define their duties, and require surety bonds 
or make other provisions against losses occasioned by acts of 
such persons; 
(4) hire, promote, compensate, and discharge officers and 
employees of the Investment Board, without regard to title 5, 
United States Code, except that no such officer or employee 
shall receive an annual rate of basic pay in excess of the rate 
prescribed for level III of the Executive Schedule under section 
5314 of title 5, United States Code; 
(5) prescribe by its Board its bylaws, that shall be consistent 
with law, and that shall provide for the manner in which— 
(A) its officers, employees, and agents are to be selected; 
(B) its property is to be acquired, held, and transferred; 
(C) its general operations are to be conducted; and 
(D) the privileges granted by law are to be exercised and 
enjoyed; 
(6) with the consent of any executive department or independ-
ent agency, use the information, services, staff, and facilities of 
such in carrying out this chapter; 
(7) enter into contracts and make advance, progress, or other 
payments with respect to such contracts; 
(8) sue and be sued in its corporate name, and complain and 
defend in courts of competent jurisdiction; 
(9) acquire, hold, lease, mortgage, or dispose of, at public or 
private sale, real and personal property, and otherwise exercise 
all the usual incidents of ownership of property necessary and 
convenient to its operations; 
(10) modify or consent to the modification of any contract or 
agreement to which it is a party or in which it has an interest 
under this chapter; 
(11) make such rules and regulations as the Board determines 
necessary and appropriate to carry out the authority vested in 
the Board under this chapter; 
(12) procure the temporary (not in excess of 2 years) or 
intermittent services of experts or consultants or organizations 
thereof, without regard to the civil service and classification 
laws and without regard to section 5 of title 41, at rates not to 
exceed the daily equivalent of the highest rate payable under 
section 5332 of title 5, United States Code, including traveltime, 
and while such individual is away from the home or regular 
104 STAT. 3986 
PUBLIC LAW 101-624—NOV. 28, 1990 
place of business of such individual, travel expenses as au-
thorized under section 5703 of title 5, United States Code; and 
(13) exercise other powers as set forth in this chapter, and 
such other incidental powers as are necessary to carry out its 
powers, duties, and functions in accordance with this chapter. 
Credit. 
SEC. 2313. ESTABLISHMENT OF INVESTMENT FUND. 
Business and 
, \ xi 
industry. 
(a) ESTABLISHMENT.— 
7 use 26o7c. 
(1) IN GENERAL.—There is established in the Treasury of the 
United States a fund for the use of the Board in carrjdng out the 
provisions of this chapter, that shall be known as the "Rural 
Business Investment Fund". 
(2) AVAILABILITY.—The Fund established under paragraph (1) 
shall be available to the Board to provide lines of credit for 
revolving funds to be operated by approved eligible entities to 
serve local businesses in rural areas. 
(b) USE.— 
(1) LINES OF CREDIT.—Amounts in the fund established by 
subsection (a) shall be used by the Board to provide lines of 
credit in amounts determined appropriate by the Board, but in 
no event shall any such line of credit exceed $750,000 annually 
(up to a total amount of $2,250,000) to an approved eligible 
entity. Each line of credit shall be made available over a period 
of time established by the Board for each such entity, but in no 
event shall any such period of time extend beyond the date on 
which the Investment Board is terminated under section 
2314(n). 
(2) EXCEPTION.—Notwithstanding paragraph (1), if the ap-
proved eligible entity is the agency of any State that is pri-
marily responsible for the rural economic development pro-
grams within such State, the Board may provide a line of credit 
to such agency in an amount that shall not exceed $1,250,000 
annually (up to a total amount of $3,750,000) in the manner 
described in paragraph (1). 
(3) AMOUNTS DRAWN FROM LINE.—Amounts drawn from each 
line of credit by each approved eligible entity shall be used 
solely as provided under this chapter and shall be drawn only 
as needed to provide loans, investments, or to carry out a 
guarantee. 
(c) APPLICATIONS OF ELIGIBLE ENTITIES FOR LINES OF CREDIT.— 
(1) FEDERAL REGISTER NOTICES.—The Board shall publish no-
tices of solicitations for applications for lines of credit in the 
Federal Register and such notices shall contain— 
(A) the application procedures established by the Board; 
(B) the application requirements of paragraph (3); 
(C) the deadlines for submission of applications (which 
shall be not less than 150 days after the publication of the 
applicable notice); 
(D) a copy of all available response forms; 
(E) a summary of the functions of the Board regarding 
applications; and 
(F) other information determined appropriate by the 
Board. 
(2) SUBMISSION AND CONSIDERATION.—An eligible entity that 
desires to receive a line of credit under this chapter shall submit 
an application to the Board at such time, in such form, and 
containing such information and documentation, including a 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3987 
description of the areas to be served, as the Board shall pre-
scribe under paragraph (1), and the Board shall consider each 
such application based on the requirements of this chapter. 
(3) ELIGIBLE ENTITY.— 
(A) MATCHING FUNDS OR LETTERS OF INTENT.—In order for 
an application to be considered for approval by the Board 
for a line of credit, each eligible entity that submits an 
application shall— 
(i) certify in writing that the entity shall use such 
funds as part of a revolving fund to invest in, and make 
or guarantee loans to, local businesses in accordance 
with this chapter; and 
(iiXD agree to provide matching funds (Federed funds 
shall not be used to satisfy such matching requirement) 
in amounts that are at least equal to the amount of the 
line of credit to be provided by the Board, that shall be 
in the form of— 
(aa) cash or cash equivalents; or 
(bb) letters of credit in favor of the eligible entity 
issued or submitted by depository institutions (as 
defined in section 3(cXl) of the Federal Deposit 
Insurance Act (12 U.S.C. 1813(c)(1)), insurance 
companies, similar Federally regulated financial 
institutions. State owned banks, local or State 
government or private philanthrophic foundations, 
as determined appropriate and acceptable by the 
Board; or 
(II) demonstrate, through procedures determined 
appropriate and acceptable by the Board, that deposi-
tory institutions (as so defined) or community develop-
ment credit unions described in section 2312(a) of this 
Act, are prepared to participate with the eligible entity 
in a loan, guarantee, or investment program for the 
benefit of local businesses, and that the total financial 
commitment demonstrated by the letters of intent or 
other documents is at least equal to the vsilue of the 
line of credit for which the eligible entity is applying. 
(B) EXCEPTION FOR CERTAIN EUGIBLE ENTITIES.— 
(i) Low PER CAPITA INCOME AREAS.—If the average per 
capita income level of the identified rural areas served 
by an eligible entity is less than 70 percent of the 
national average per capita income for the most recent 
year for which such information is available, such 
eligible entity shall only be required to match 50 per-
cent of the funds provided by the Board in the same 
manner as described in subclause (I) or (II) of subpara-
graph (AXii). A list of the average per capita income Federal 
and population of each county in the United States that Register, 
contains rureil areas, and the national average per Publication. 
capita income for such year, shall be published in the 
Federal Register and otherwise made available by the 
Board to the public, 
(ii) INDIAN TRIBAL COUNCIL PARTICIPATION.— 
(I) IN GENERAL.—Community or tribal develop-
ment corporations operated by Federally recog-
nized tribal councils that desire to administer a 
local revolving fund may participate in the pro-
104 STAT. 3988 
PUBLIC LAW 101-624—NOV. 28, 1990 
r?. I
f
?
» 
gram established under this chapter if such cor-
porations meet the rules and procedures estab-
lished under this chapter that are determined by 
the Board to be pertinent. 
(II) ESTABUSHMENT OF SPECIAL RULES AND PROCE-
DURES.— 
Loan programs. 
(aa) IN GENERAL.—Not later than 220 days 
after the date of enactment of this Act, the 
Board shall establish rules and procedures to 
enable such community or tribal development 
corporations serving rural areas located on 
Federally recognized reservations (including 
former reservations in Oklahoma) to partici-
pate in the program established under this 
chapter through the operation of revolving 
funds used for investing in, and making or 
guaranteeing loans to, new or expanding local 
businesses. 
(bb) CJoNTENTS.—Rules and procedures estab-
lished under item (aa) shall be established to 
ensure that development corporations that re-
ceive Federal lines of credit under this chapter 
serve needy reservation areas, including areas 
that have low per capita income, high un-
emplojmient, high poverty rates, depressed or 
lagging local economies, and other factors 
determined appropriate by the Board. 
(III) MATCHING REQUIREMENTS.—The require-
ments of subsection (cX3) and section 2314(d) 
concerning the provision of matching funds and 
the requirement of partnerships for loans, and any 
related matching requirements, shall not apply to 
the development corporations receiving assistance 
under this clause. 
(4) REAPPUCATION FOR UNES OF CREDIT.— 
(A) IN GENERAL.—An eligible entity that has received a 
line of credit under this section may reapply in subsequent 
years for additional lines of credit if the Board makes a 
determination that— 
(i) the applicant has demonstrated that the funds 
previously allocated under such line of credit have been 
substantially obligated and that additional demand for 
lending, investment, or guaranteed funding exists in 
the service area of the applicant; 
(ii) the applicant will meet the matching require-
ments under subsection (cX3); and 
(iii) the applicant has administered the revolving 
fund consistent with this chapter and has the capacity 
to administer additional funds in the same manner. 
(B) PRIORITY.—Eligible entities qualified to receive an 
initial line of credit or that will serve a service area not 
served by another entity shall receive priority over any 
applicant seeking a second or subsequent line of credit. 
(5) MONITORING COMPUANCE.—The Board shall establish 
procedures to monitor the compliance of each eligible entity 
participating in the program authorized by this chapter with 
the requirements of this chapter. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3989 
(6) ELIGIBLE ENTITY REVOLVING FUND REQUIREMENT.—To be 
eligible to receive a line of credit from the Rural Fund, the 
applicant eligible entity shall— 
(A) demonstrate its ability or potential capacity to make 
sound business, lending, and investment decisions and to 
provide business counseling and technical assistance; 
(B) demonstrate its ability to operate consistent with the 
requirements of this chapter and to increase the availabil-
ity of credit in rural areas to promote the creation or 
expansion of viable businesses in rural areas; 
(C) identify the proposed service area and define a strat-
egy for serving that area that should describe such 
characteristics as similar industrial, labor, or other mar-
kets, similar geographic or socioeconomic conditions, or 
other related considerations, and, to the extent that such 
area includes any towns or townships, make a commitment 
to serve such towns or townships in their entirety; 
(D) provide an assurance that its service area will consist 
of— 
(i) all rural areas in a county if the median household 
income of the county is less than the Statewide 
nonmetropolitan median household income; or 
(ii) identified rural areas in a county if— 
(I) the median household income of the county is 
not less than the Statewide 
nonmetropolitan 
medi£m household income; and 
(II) the median household income of each rural 
city, town, or township to be served, and of each 
separate contiguous rural area to be served, is less 
than 
the 
Statewide 
nonmetropolitan 
median 
household income; 
(iii) identified rural areas in a State in which the 
avergige per capita income is less than 70 percent of the 
nationwide per capita income; or 
(iv) any county where the net migration population 
loss is at least 5 percent or greater from April 1, 1980, 
to July 1,1987, as reported by the Census Bureau of the 
Department of Commerce; and 
(E) provide a notification that an application has been 
filed with the Board to each county or other local unit of 
government having jurisdiction over some or all of the 
proposed service area under procedures developed by the 
Board. 
(7) FACTORS IN APPROVAL OF APPUCATIONS.—In determining 
which applications to approve, and the maximum amount of 
funds to be offered in each line of credit, the Board shall grant a 
preference to eligible entities— 
(A) that have experience in serving locsd credit or equity 
needs and in making sound business and investment deci-
sions, or that have the ability to serve such needs and make 
such decisions; 
(B) whose boards of directors (or governing bodies if no 
such board exists) are composed of a cross-section of individ-
uals (such as individuals with backgrounds in business, 
community development, or regional development, individ-
uals who are State, local, or county government of^cials, or 
104 STAT. 3990 
PUBLIC LAW 101-624—NOV. 28, 1990 
Regulations. 
individuals involved in banking, financial, or other invest-
ment activities); 
(C) that are likely to stimulate significant job creation or 
retention and new business creation or business expansion 
per dollar of fimds provided under this section; 
(D) that submit applications that demonstrate the ability 
and willingness to provide to local businesses continuing 
technical and management assistance, training, financial 
and business guidance, and planning; 
(E) that demonstrate that the activities of the eligible 
entity are consistent with State, county, or local goals, 
whichever is applicable, regarding long-term economic 
growth and community development; 
(F) that submit applications containing a comprehensive 
investment strategy, developed in consultation with the 
applicable State, regional council or government, and 
county or other general purpose unit of local government; 
and 
(G) that propose to serve a service area— 
(i) whose unemplo5anent or poverty rates exceed the 
Statewide nonmetropolitan average; 
(ii) with special needs arising from actual or threat-
ened severe unemplo3anent arising from economic 
dislocation; or 
(iii) that includes any county in which the net migra-
tion population loss is at least 5 percent or greater from 
April 1, 1980, to July 1, 1987, as reported by the Census 
Bureau of the Department of Commerce. 
(8) GEOGRAPHIC SPREAD.— 
(A) IN GENERAL.—In awarding lines of credit under this 
section the Board shall attempt, as much as reasonably 
practicable and consistent with sound financial judgment, 
to assure that all rural regions of the United States benefit 
from such awards. 
(B) MINIMUM AMOUNT OF FUNDS.—After considering the 
availability of qualified applications, and if consistent with 
good investment practices and the other requirements of 
this chapter, the Board shall approve the application of at 
least one eligible entity in each State selected under section 
231003X1). The Board shall, to the maximum extent prac-
ticable and appropriate, ensure that eligible entities that 
are approved by the Board in any given State receive at 
least $750,000 (per State) out of the funds provided under 
subsection (d). In addition, to the mgiximum extent prac-
ticable the Board shall approve the applications of at lesust 
two eligible entities in each State containing an approved 
eligible entity. 
(C) MAXIMUM AMOUNT OF FUNDS.—The total amount of 
funds provided under this chapter to eligible entities in any 
State shall not exceed $10,000,000. 
(D) SPECIAL PROGRAM.— 
(i) IN GENERAL.—The Board shall issue regulations to 
establish a program that targets the benefits of the 
Federal lines of credit provided under this section to 
those rural areas and residents with special needs. 
(ii) LIMITS.—If consistent with sound investment 
practices, not less than 5 percent, nor more than 15 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3991 
percent, of the funds appropriated under subsection (d) 
shall be issued to eligible entities that will serve— 
(I) local businesses located in very distressed 
rural areas, as defined by the Board, that may 
include areas with special needs arising from 
actual or threatened severe unemplo3mient which 
results from economic dislocation; and 
(II) local businesses that provide beneficial serv-
ices to rural residents such as improved medical, 
hospital, or health care, licensed day care facilities 
or centers, improved services for the handicapped, 
the disabled, the elderly or other needy indi-
viduals, improved educational opportunities, im-
proved public transportation services for needy 
individuals, or other related services as determined . 
appropriate by the Board. 
(d) LIMITATION ON AUTHORIZATION OF APPROPRIATIONS.—To carry 
out this chapter, there are authorized to be appropriated to the 
Rural Fund and the Board $10,000,000 for fiscal year 1992, 
$8,600,000 for fiscal year 1993, $6,700,000 for fiscal year 1994, and 
$4,700,000 for each of fiscal years 1995 and 1996. Amounts appro-
priated under this subsection shall remain available until expended 
or until the Board is terminated. 
(e) RELOCATION AND REFINANCING.—The Board shall establish Regulations. 
rules and procedures to prohibit eligible entities from using the 
assistance received under this chapter for loans and investments, or 
for issuing guarantees, that would— 
(1) facilitate the relocation of a local business from one 
community to another; 
(2) refinance the existing debt of a local business, except that 
such refinancing may be undertaken with such assistance if it is 
undertaken in conjunction with a substantial expansion effort 
by the local business; or 
(3) significantly reduce the viability of a then existing busi-
ness engaged in substantially the same business activities in the 
same community. 
SEC. 2314. LOCAL REVOLVING FUNDS. 
(a) ESTABUSHMENT.— 
(1) IN GENERAL.—Each eligible entity approved by the Board 
to participate in the program established under this chapter 
shall establish a local revolving fund account in which to 
deposit— 
(AXi) amounts received from the Fund under this chap-
ter; 
(ii) any local matching funds described in section 
2313(cX3XA); and 
(iii) any profits or income, repayments of loans, proceeds 
from the sale of equity investments, or other gains or 
returns on investments or loans, derived from the activities 
of the revolving fund established under this subsection; less 
(B) reasonable operating expenses or losses incurred in 
administering such fund. 
(2) PLACE OF ESTABLISHMENT.—Each local revolving fund 
established under this subsection may be established in one or 
more member banks of the Federal Reserve System, any Feder-
ally insured State nonmember bank (as defined in section 3(b) of 
Business and 
industry. 
Credit. 
7 use 2007d. 
104 STAT. 3992 
PUBLIC LAW 101-624—NOV. 28, 1990 
the Federal Deposit Insurance Act (12 U.S.C. 1813(b))), or any 
State owned bank whose deposits are backed by the full faith 
and credit of the State, and the funds, except as provided in 
subsection (b) of this section, shall be held in cash and receive 
interest or be invested in direct obligations of the United States 
or in obligations guaranteed by the United States or an agency 
thereof. 
(b) USE OF FUND.—Amounts in a local revolving fund may be 
used— 
(1) to provide loans or equity capital, or loan guarantees, to 
approved local businesses as authorized in this chapter, under 
procedures established by the Board; 
(2) to cover the costs of providing training, business or finan-
cial planning, or management or technical assistance to 
approved local businesses in amounts that do not exceed 
amounts or levels described in standards established by the 
Board; 
(3) if financi£il investments are made in the eligible entity, in 
accordance with item (aa) or (bb) of section 2313(cX3XAXiiXI), to 
provide for a return of capital to non-Federal investors in the 
revolving fund, except that if such revolving fund experiences 
capital or other losses the share of returned capital under this 
paragraph shall be proportionately, or otherwise appropriately 
reduced to reflect such losses, under procedures established by 
the Board; or 
(4) to cover reasonable operating or capital expenses, losses, or 
for other charges as prescribed in rules or standards established 
by the Board. 
(c) DECISIONS CONCERNING FUNDING.—Eligible entities that re-
ceive a line of credit under section 2313 shall make case-by-case 
determinations concerning applications submitted by each local 
business for loans, equity capital, or loan guarantees, under general 
procedures and requirements established by the Board. 
(d) REQUIREMENT OF PARTNERSHIPS FOR LOANS OR INVESTMENTS.— 
Funds in each local revolving fund shall be loaned, invested, or used 
to provide a guarantee, only if one or more depository institutions 
(as defined in section 3(cXl) of the Federal Deposit Insurance Act (12 
U.S.C. 1813(cXl)) or community development credit unions described 
in section 2312(a) of this Act, under procedures established by the 
Board, match each investment or loan made by each such revolving 
fund to each such local business, on at least a doUar-for-doUar basis, 
or provide the funds for the loans that are guaranteed by such local 
revolving fund. 
(e) INVESTMENT SIZE LIMITS.— 
(1) IN GENERAL.— 
(A) AMOUNT PER LOCAL BUSINESS.—The amount of Federal 
funds provided from any revolving fund for use in making 
loans or investments, or available regarding each guaran-
tee, shall not exceed $250,000 in any given calendar year, to 
any single approved local business or to other local 
businesses that are financigilly connected or otherwise re-
lated to such local business as defined by the Board. 
(B) OTHER SOURCES.—This chapter shall not be construed 
to limit the total amount of loans, investments, or guaran-
tees that each local business may receive from sources 
other than eligible entities. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3993 
(C) PROCEDURES.—In implementing this paragraph the 
Board shall develop procedures to establish, impute, or 
determine the amount of Federal funds that shall be consid-
ered available in the revolving funds created by approved 
eligible entities. 
(2) INELIGIBILITY.—Any local business that employs 100 or 
more employees shall not be eligible to receive assistance from a 
local revolving fund that receives assistance under this chapter. 
(f) SUBORDINATED INTEREST OF LOCAL REVOLVING FUND.—If a 
depository institution (as defined in section 3(cXl) of the Federal 
Deposit Insurance Act (12 U.S.C. 1813(cXl)) or a community develop-
ment credit union described in section 2312(a) of this Act has made 
an investment or loan in a local business in conjunction with an 
investment or loan made out of the revolving fund of an approved 
eligible entity, the amount invested or loaned by such revolving 
fiind in such local business may be subordinated to any degree and 
in any manner. 
(g) OTHER INVESTORS.—A depository institution (as defined in 
section 3(cXl) of the Federal Deposit Insurance Act (12 U.S.C. 
1813(cXl)), community development credit union described in section 
2312(a) of this Act, similar Federally regulated financial institution. 
State 
owned 
bank, 
local 
or 
State 
government, 
private 
philanthrophic foundation, or other entity that contributes capital 
to an eligible entity that receives Federal assistance under this 
chapter may establish contractual arrangements with such eligible 
entity concerning the return of such investments in the local revolv-
ing fund consistent with subsection (bX3). 
(h) ADDITIONAL CAPITAL.—The Board shall promulgate regulations Regulations. 
that provide each participating eligible entity with a sufficient 
amount of time to obtain additional capital, lines of credit, or letters 
of intent, if any investor, pursuant to the contract with the eligible 
entity under subsection (g), withdraws some or all of its investment. 
(i) CONTINUATION OF LINE OF CREDIT.—A line of credit provided to 
an approved eligible entity under section 2313 for use in a local 
revolving fund shall be available to be drawn upon until the Invest-
ment Board is terminated or until the line of credit is canceled, 
revoked, or suspended by the Board or the Secretary as described in 
section 2315 or subsection (1) of this section. 
(j) CONTINUATION OF BUSINESS PROMOTION ACTIVITIES.—The Fed-
eral assistance provided to any eligible entity under this chapter 
shall become the property of such entity on the termination of the 
Investment Board i
f
— 
(1) the Board determines that the eligible entity that admin-
isters the local revolving fund has operated the fund in a 
manner that is consistent with this chapter; and 
(2) the eligible entity contracts with the Secretary to continue 
to provide lending, investment, and guarantee assistance 
consistent with this chapter. 
(k) DEVELOPMENT OF MONITORING PROCEDURES.—On and after the 
date on which the Investment Board is terminated, the Secretary 
shall act in place of the Board and shall monitor the operations of 
eligible entities that receive Federal assistance under this chapter 
which continue to exist on such date. 
(1) REFUND OF FUNDS.—Notwithstanding subsection (j), and in 
addition to any actions taken under section 2315, if the Secretary 
finds that the purpose of any eligible entity is no longer to promote 
business development in a manner consistent with this chapter, the 
104 STAT. 3994 
PUBLIC LAW 101-624—NOV. 28, 1990 
Secretary shall revoke the approval of the eligible entity, obtain a 
refund in an amount equal to the amount of funds drawn out of the 
Federal line of credit issued to the eligible entity together with an 
appropriate amount of interest on such amount, as determined by 
the Secretary, and succeed to, or acquire the rights, privileges, and 
assets, investments of, and the payments due from such eligible 
entity, as described in section 2315(h). 
(m) ANNUAL REPORTS TO THE BOARD.— 
(1) IN GENERAL.—Each eligible entity that receives assistance 
under this chapter shall annually prepare and submit to the 
Board, at such time and in such form as the Board may require, 
a report describing the financial condition of the eligible entity, 
and the investments, cash revenues, income from investments, 
loans made, equity positions taken, guarantees issued, losses 
sustained or ts^en, any training, business, or technical Eissist-
ance, or financial planning provided, operating expenses, loss 
rates, and such other matters as the Board determines appro-
priate concerning the eligible entity. 
(2) POST TERMINATION.—After the Board terminates under 
subsection (n), the reports required under paragraph (1) shall be 
submitted to the Secretary who shall stand in the same position 
as the Board. 
(n) TERMINATION OP BOARD.—The Investment Board established 
by section 2312(a) shall terminate on the last day of the 5th calendar 
year following the date of enactment of this chapter and on and 
after such date the Secretary shall act in place of such Board. 
7 use 2007e. 
SEC. 2315. COMPLIANCE AND ENFORCEMENT. 
(a) 
REVOCATION OR CANCELLATION OF LINE OF CREDIT AND 
REFUND.— 
(1) GROUNDS FOR REVOCATION.—The Board shall revoke or 
suspend a line of credit, £ind shall request a full or partial 
refund of the Federal investment, with an appropriate amount 
of interest— 
(A) for false statements knowingly made in any written 
statement required under this chapter, or under any regu-
lation or Federal Register notice issued under this chapter; 
(B) if any written statement required under this chapter, 
or under any regulation or Federal Register notice issued 
under this chapter, fails to state a material fact necessary 
in order to make the statement not misleading in the light 
of the circumstances under which the statement was made; 
(C) for willful or repeated violation of, or willful or re-
peated failure to observe, any provision of this chapter; 
(D) for willful or repeated violation of, or willful or 
repeated failure to observe, any rule or regulation au-
thorized under this chapter; or 
(E) for violation of, or failure to observe, any cease and 
desist order issued by the Board under this subsection. 
(2) CANCELLATION OF LINE OF CREDIT.—Notwithstanding any 
action taken under paragraph (1), the Board may cancel any 
prospective payments to be made from any approved line of 
credit under this chapter if the Board determines that the 
eligible entity participating in the program established under 
this chapter made an investment, or acted in a manner, that 
was inconsistent with any provision of this chapter. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3995 
(3) CEASE AND DESIST ORDERS.—If an eligible entity has not 
complied with any provision of this chapter, or of any regulation 
issued pursuant thereto, or is engaging or is about to engage in 
conduct that constitutes or will constitute a violation of this 
chapter or such regulation, the Board may order such entity to 
cease and desist from such conduct. The Board may further 
order such entity to take such action or to refrain from such 
action as the Board determines necessary to ensure compliance 
with this chapter and the regulations issued thereunder. 
(4) ORDER TO SHOW CAUSE, CONTENTS, AND HEARING.— 
(A) ORDER.—Prior to revoking or suspending a line of 
credit under paragraph (1) or (2), or issuing a cease and 
desist order under paragraph (3), the Board shall serve on 
the eligible entity an order to show cause why an order 
revoking or suspending the line of credit or a cease and 
desist order should not be issued. 
(B) CONTENTS.—An order to show cause under subpara-
graph (A) shall contain a statement of the matters of fact 
and law asserted by the Board and the legal authority and 
jurisdiction under which a hearing is to be held, and shall 
state that a hearing will be held before the Board at a time 
and place stated in the order. 
(C) HEARING.—If, after a hearing under subparagraph (B) 
or a waiver thereof, the Board determines on the record 
that an order revoking or suspending the line of credit, or a 
cease and desist order should be issued, or an order requir-
ing a refund of the Federal investment in addition to 
reasonable interest thereon should issue, the Board shall 
promptly issue such order, which shall include a statement 
of the findings of the Administration and the reasons for 
such findings and specify the effective date of the order, and 
shall cause the order to be served on the entity. 
(5) SUBPOENA OF PERSONS, BOOKS, PAPERS, AND DOCUMENTS; 
FEES AND MILEAGE; ENFORCEMENT.— 
(A) SUBPOENA.—The Board may require by subpoena the 
attendance and testimony of witnesses and the production 
of all books, papers, and documents relating to the hearing 
from any place in the United States. 
(B) FEES AND MILEAGE.—Witnesses summoned before the 
Board shall be paid by the party at whose instance such 
witnesses were called the same fees and mileage that are 
paid witnesses in the courts of the United States. 
(C) ENFORCEMENT.—In the case of disobedience to a sub-
poena under this paragraph, the Board, or any party to a 
proceeding before the Board, may invoke the aid of any 
court of the United States in requiring the attendance and 
testimony of witnesses and the production of books, papers, 
and documents. 
(6) PETITION TO MODIFY OR SET ASIDE ORDER; FILING, TIME AND 
PLACE, ADMINISTRATION TO SUBMIT RECORD; ACTION OF COURT; 
REVIEW.— 
. (A) IN GENERAL.—An order issued by the Board under 
this subsection shall be final and conclusive unless not later 
than 30 days after the service thereof the eligible entity 
appeals to the United States Court of Appeals for the 
circuit in which such corporation has its principal place of 
business by filing with the clerk of such court a petition 
39-194 O - 91 - 22 : QL 3 Part 5 
104 STAT. 3996 
PUBLIC LAW 101-624—NOV. 28, 1990 
praying that the order of the Board be set aside or modified 
in the manner stated in the petition. 
(B)FlUNG.— 
(i) LEAVE OF COURT.—After the expiration of the 30-
day period referred to in subparagraph (A), a petition 
may be filed only by leave of court on a showing of 
reasonable grounds for failure to file the petition prior 
to the expiration of such period. 
(ii) CERTIFICATION.—The clerk of the court shall, on 
filing, cause a copy of the petition to be delivered to the 
Board and the Board shall certify and file in the court a 
transcript of the record on which the order was en-
tered. If prior to the filing of such record the Board 
£imends or sets aside its order, in whole or in part, the 
petitioner may amend the petition within such time as 
the court may determine, after providing notice to the 
Board. 
(C) STAY OR SUSPENSION OF ORDER.—The filing of a peti-
tion for review under this paragraph shall not of itself stay 
or suspend the operation of the order of the Board, but the 
court of appeals in its discretion may restrain or suspend, in 
whole or in part, the operation of the order pending the 
final hearing and determination of the petition. 
(D) ACTION BY COURT.—The court may affirm, modify, or 
set aside the order of the Board. 
(E) ADDITIONAL EVIDENCE.— 
(i) DETERMINATION.—If the court determines that the 
just and proper disposition of the case requires the 
taking of additional evidence, the court shall order the 
Board to reopen the hearing for the taking of such 
evidence, in such manner and on such terms and condi-
tions as the court may consider appropriate. 
(ii) FINDINGS.—The Board may modify its findings as 
to the facts, or make new findings, by reason of the 
additional evidence taken under this subparagraph, 
and it shall file its modified or new findings and the 
amendments, if any, of its order, with the records of 
such additional evidence. 
(F) CONSIDERATION OF OBJECTIONS.—The court shall not 
consider an objection to an order of the Board unless the 
objection was argued before the Board or, if it were not so 
argued, unless there were reasonable grounds for fsiilure to 
do so. 
(G) REVIEW.—The judgment and decree of the court 
affirming, modif3dng, or setting aside any such order of the 
Board shall be subject only to review by the Supreme Court 
of the United States on certification or certiorari as pro-
vided in section 1254 of title 28, United States Code. 
(7) ENFORCEMENT OF ORDER.—If the entity against which or 
against whom an order is issued under this subsection fails to 
obey the order, the Board may apply to the United States Court 
of Appeals for the circuit where the entity has its principal 
place of business, for the enforcement of the order, and shall file 
a transcript of the record on which the order complained of was 
entered. On the filing of the application, the court shall cause 
notice thereof to be served on the entity. The evidence to be 
considered, the procedure to be followed, and the jurisdiction of 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3997 
the court shall be the same £is is provided in paragraph (6) for 
applications to set aside or modify orders, 
(b) INVESTIGATIONS AND EXAMINATIONS.— 
(1) AUTHORITY.— 
(A) IN GENERAL.—The Board may conduct such investiga-
tions as the Board considers necessary to determine 
whether £in eligible entity has engaged in any conduct that 
constitutes or will constitute a violation of any provision of 
this chapter, of any regulation issued under this chapter, or 
of any order issued under this section. 
(B) FiUNG OF STATEMENTS.—The Board shall permit any 
individual to file a statement with the Board in writing, 
under oath, or otherwise as the Board shall determine, as to 
all the facts and circumstances concerning the matter to be 
investigated. 
(C) SUBPOENA.—For the purpose of any investigation 
under this subsection, the Board may administer oatl^ and 
affirmations, subpoena witnesses, compel their attendance, 
take evidence, and require the production of any books, 
papers, and documents that are relevant to the inquiry. 
Such attendance of witnesses and the production of any 
such records may be required from any place in the United 
States. 
(D) REFUSAL TO OBEY.—In case of contumacy by, or refusal 
to obey a subpoena issued to, any individual, including an 
entity or corporation, the Board may invoke the aid of any 
court of the United States within the jurisdiction of which 
such investigation or proceeding is carried on, or where 
such individual resides or carries on business activity, in 
requiring the attendance and testimony of witnesses and 
the production of books, papers, and documents, and such 
court may issue an order requiring such individual to 
appear before the Board, to produce records, if so ordered, 
or to give testimony touching the matter under investiga-
tion. 
(E) C!ONTEMPT.—A failure to obey an order of the court 
under this subsection shall be punishable by such court as a 
contempt thereof. All process in any such case may be 
served in the judicial district where such individual is an 
inhabitant or wherever such individual may be found. 
(2) EXAMINATIONS AND REPORTS.— 
(A) EXAMINATIONS.—An eligible entity under this chapter 
shall be subject to examinations made by the Board 
through examiners selected or approved by the Board, and 
the cost of such examinations, including the compensation 
of the examiners, may in the discretion of the Board be 
assessed against the entity examined and when so assessed 
shall be paid by such entity. 
(B) REPORTS.—Such entities shall prepare and submit 
reports to the Board at such times and in such form as the 
Board may require. 
(3) EXAMINATIONS.—Each eligible entity shall be examined 
and audited at least once every 2 years, under procedures 
established by the Board, to determine whether or not such 
entity has been operated in a manner consistent with this 
chapter and in an otherwise lawful manner, except that the 
Board may defer the examination for not more than 1 year if, in 
104 STAT. 3998 
PUBLIC LAW 101-624—NOV. 28, 1990 
its discretion, the Board determines that such a deferral would 
be appropriate based on the prior operating experience of the 
entity, the contents and results of the last examination of the 
entity, and the management expertise of the entity. 
(c) INJUNCTIONS OR OTHER ORDERS.— 
(1) GROUNDS AND JURISDICTION OF COURT.—If, in the judgment 
of the Board, an eligible entity has engaged or is about to 
engage in conduct that constitutes or will constitute a violation 
of any provision of this chapter, of any regulation under this 
chapter, or of any order issued under this section, the Board 
may apply to the proper district court of the United States or a 
United States court located in any jurisdiction subject to the 
laws of the United States, for an order enjoining such conduct 
or enforcing compliance with such provision, rule, regulation, or 
order. Such court shall have jurisdiction over such conduct and, 
on a showing by the Board that such entity has engaged in or is 
about to engage in such conduct, may issue a permanent or 
temporary injunction, restraining order, or other order without 
bond. 
(2) EQUITY JURISDICTION OF CORPORATION AND ASSETS.—In any 
proceeding under this section, the court as a court of equity 
may, to such extent as it considers necessary, declare that such 
court has exclusive jurisdiction over the entity and the assets 
thereof, wherever located. Such court shall have jurisdiction in 
any such proceeding to appoint a trustee or receiver to hold or 
administer under the direction of the court the assets so pos-
sessed. 
(3) TRUSTEESHIP OR RECEIVERSHIP.—The Board shall have 
authority to act as trustee or receiver of an entity under this 
section. On request by the Board, the court may appoint the 
Board to act in such capacity unless the court determines such 
appointment to be inequitable or otherwise inappropriate 
because of the special circumstances involved. 
(d) UNLAWFUL ACTS AND OMISSIONS BY OFFICERS, DIRECTORS, 
EMPLOYEES, OR AGENTS.— 
(1) VIOLATION OF CHAPTER.—It shall be unlawful for any 
eligible entity to violate any provision of this chapter or any 
regulation issued under this chapter, or for any individual, 
directly or indirectly, to authorize, order, or participate in, or 
cause, bring about, counsel, aid, or abet conduct that constitutes 
or will constitute, in whole or in part, such a violation. 
(2) BREACH OF FIDUCIARY DUTY.—It shall be unlawful for any 
officer, director, employee, agent, or other participant in the 
management or conduct of the affairs of an eligible entity to 
engage in conduct, in breach the fiduciary duty of such individ-
ual or such officer, director, employee, agent, or participant, if, 
as a result thereof, the entity has suffered or is in imminent 
danger of suffering financial loss or other damage. 
(3) DISQUAUFICATION OF OFFICERS AND EMPLOYEES.—Except on 
the written consent of the Board, it shall be unlawful for any 
individual to take or continue to hold office as an officer, 
director, or employee of an eligible entity, or become or con-
tinue to be an agent or participate in the conduct of the affairs 
or management of an eligible entity if such individual has 
been— 
(A) convicted of a felony, or of any other criminal offense 
involving dishonesty or breach of trust; or 
- t ^ '^fr-^-^'^''^^'* 
•^•**^ 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 3999 
(B) found civilly liable in damages, or has been perma-
nently or temporarily enjoined by an order, judgment, or 
decree of a court of competent jurisdiction, by reason of any 
conduct involving fraud or breach of trust. 
(e) PENALTIES AND FORFEITURES.— 
(1) IN GENERAL.—Except as provided in paragraph (2), an 
eligible entity that violates any regulation or written directive 
issued by the Board requiring the filing of any regular or special 
report under this chapter, shall forfeit and pay to the United 
States a civil penalty of not more than $100 for each and every 
day of the continuance of the corporation's failure to file such 
report, unless the entity demonstrates that such failure is due 
to reasonable cause and not due to willful neglect. The civil 
penalties provided for in this subsection shall accrue to the 
United States and may be recovered in a civil action brought by 
the Board. 
(2) EXEMPTION.—At any time before a failure under para-
graph (1), and after notice and opportunity for hearing, the 
Board may through rules and regulations, or on application of 
an interested party, by order, exempt in whole or in part, any 
entity from the provisions of paragraph (1), on such terms and 
conditions smd for such period of time as the Board determines 
necessary and appropriate, if the Board finds that such action is 
not inconsistent with the public interest or the protection of the 
Board. The Board may for purposes of this subsection impose 
any alternative requirements appropriate to the situation. 
(f) JURISDICTION AND SERVICE OF PROCESS.—Any suit or action 
brought under this section by the Board to enforce any liability or 
duty created by, or to enjoin any violation of, this chapter, or any 
rule, regulation, or order promulgated thereunder, shall be brought 
in the district in which the eligible entity maintains its principal 
office, and process in such cases may be served in any district in 
which the defendant maintains its principal office or transacts 
business, or wherever the defendant may be found. 
(g) SUBSTITUTION OF SECRETARY.—On the termination of the 
Board, the Secretary shall stand in place of the Board and shgill 
possess all the powers, privileges, and rights regarding compliance 
and enforcement described in this section and in section 2314. 
(h) REVOCATION, SUSPENSION, OR TERMINATION.—If the approval of 
any eligible entity to participate iii this program is revoked, sus-
pended, or terminated, or if the activities of the eligible entity 
otherwise end, the Board, or the Secretary, upon the termination of 
the Board, shall— 
(1) possess all the rights and privileges of such eligible entity; 
(2) succeed to the assets of such eligible entity to the extent 
necessary to obtain a refund of any amounts due to the Board or 
the Secretary; 
(3) be entitled to receive any pajmaents due to such eligible 
entity from any local businesses on any outstanding loans; and 
(4) take over any equity investment held by such eligible 
entity. 
104 STAT. 4000 
PUBLIC LAW 101-624—NOV. 28, 1990 
Intergdvernmental 
C H A P T E R 3 — R U R A L E C O N O M I C D E V E L O P M E N T R E V I E W 
relations. 
P A N E L S 
SEC. 2316. DELIVERY OF CERTAIN RURAL DEVELOPMENT PROGRAMS. 
(a) IN GENERAL.—The Consolidated Farm and Rural Development 
Act (7 U.S.C. 1921 et seq.) is amended by adding after the section 
added by section 2301(a)(1) of this Act the following new sections: 
7 u s e 2008. 
"SEC. 365. SYSTEM FOR DELIVERY OF CERTAIN RURAL DEVELOPMENT 
PROGRAMS. 
"(a) IN GENERAL.— 
"(1) ASSISTANCE IN EUGIBLE STATES.—Assistance under each 
designated rural development program shall be provided in 
eligible States to qualified projects in accordance with this 
section. 
"(2) No ASSISTANCE IN OTHER STATES.—The Secretary shall not 
provide assistance under any designated rural development 
program in any State that is not an eligible State. 
"(b) DEFINITIONS.—As used in this section and section 366: 
"(1) AREA PLAN.—The term 'area plan' means, with respect to 
a local or regional area in a State, the long-range rural develop-
ment plan developed for the area. Each area plan shall identify 
the geographical boundaries of the area and include— 
' (A) an overall development plan for the area with goals, 
including business development and infrastructure develop-
^ 
ment goals, and tiirie lines based on a realistic assessment 
of the area, including, but not limited to— 
"(i) the number and types of businesses in the area 
that are growing or declining, and a list of the types of 
businesses that the area could potentially support; 
"(ii) the outstanding need for water and waste and 
other public services or facilities in the area; 
"(iii) the realistic possibilities for industrial recruit-
ment in the area; 
"(iv) the potential for the development of tourism in 
the area; 
"(v) the potential for the generation of emplojmient 
in the area through the creation of small businesses 
and the expansion of existing businesses; and 
"(vi) the potential for the production of value-added 
agricultural products in the area; 
"(B) an inventory and assessment of the human resources 
of the area, including, but not limited to— 
"(i) a current list of organizations in the area and 
their special interests; 
"(ii) the current level of participation of area resi-
dents in rural development activities and the level of 
participation required for successful implementation of 
the plan; 
"(iii) the availability of general and specialized job 
training in the area and the extent to which the needs 
of the area for such training are not being met; 
"(iv) a list of area residents with special skills which 
could be useful in developing and implementing the 
plan; and 
"(v) an analysis of the human needs of the area, the 
resources in the area available to meet those needs, and 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 4001 
the manner in which the plan, if implemented, would 
increase the resources available to meet those needs; 
"(C) the current degree of intergovernmental cooperation 
in the area and the degree of such cooperation needed for 
the successful implementation of the plan; 
"(D) the ability and willingness of governments and citi-
zens in the area to become involved in developing and 
implementing the plan; 
"(E) a description of how the governments in the area will 
apply budget and fiscal control processes to the plan; and 
"(F) the extent to which public services and facilities need 
to be improved to achieve the economic development and 
quality of life goals of the plan, taking into consideration, at 
a minimum— 
. 
"(i) law enforcement; 
"(ii) fire protection; 
"(iii) water and solid waste management; 
"(iv) education; 
"(v) health care; 
"(vi) transportation; 
"(vii) housing; 
"(viii) communications; and 
"(ix) the availability of, and capability to generate, 
electric power. 
"(2) DESIGNATED RURAL DEVELOPMENT PROGRAM.—The term 
'designated rursil development program' means a program car-
ried out under section 304(b), 306(a), or subsections (a) through 
(f) and (h) of section 310B of this Act, or under section 1323 of 
the Food Security Act of 1985, for which funds are available at 
any time during the fiscal year under such section. 
"(3) EUGIBLE STATE.— 
"(A) REQUIREMENTS.—The term 'eligible State' means, 
with respect to a fiscal year, a State to which this section is 
made applicable under section 2310(bX2) of the Rural Eco-
nomic Development Act of 1990, and with respect to which 
all of the following apply not later than the first day of the 
fiscal year: 
"(i) 
ESTABLISHED RURAL ECONOMIC DEVELOPMENT 
REVIEW PANEL.—The State has established an advisory 
rural economic development review panel that meets 
the requirements of section 366. 
"(ii) APPOINTED STATE COORDINATOR.—The Governor 
of the State has appointed an officer or employee of the 
State government to— 
"(I) manage, operate, and carry out the instruc-
tions of, the panel described in clause (i); 
"(II) serve as a liaison between the panel and the 
Federal and State agencies involved in rural devel-
opment, including transmitting to the Secretary 
any list transmitted to the State coordinator pursu-
ant to section 366(bX6); 
"(III) ensure that all rursil residents in the State 
are informed about the manner in which assist-
ance under designated rural development pro-
grams is to be provided to the State pursuant to 
> 
this section and section 366; 
104 STAT. 4002 
PUBLIC LAW 101-624—NOV. 28, 1990 
"(TV) provide information to State residents, on 
request, about the manner in which assistance 
under designated rural development progrsuns is to 
be provided to the State pursuant to this section 
and section 366; and 
"(V) coordinate the efforts of interested rural 
residents with the State rural economic develop-
ment review panel, 
"(iii) DESIGNATED AGENCY TO PROVIDE ADMINISTRATIVE 
SUPPORT TO PANEL.—The State has designated an 
agency to provide the panel and the State coordinator 
with support for the daily operation of the panel de-
scribed in clause (i). 
"(B) 
GOOD 
FAITH 
EXCEPTION.—Notwithstanding 
the 
requirements of subparagraph (A), the Secretary of Agri-
culture may determine, no later than the first day of the 
fiscal year, a State to be an eligible State under this para-
graph for the fiscal year if the Secretary determines that 
the State has made a good faith effort to meet, and has 
substantially met, such requirements. 
"(4) QUALIFIED PROJECT.—The term 'qualified project' means 
any project— 
"(A) for which the agency described in paragraph (3XC) of 
the State has identified— 
"(i) the alternative Federal, State, local, or private 
sources of assistance; and 
"(ii) the related activities in the State; and 
"(B) to which the Secretary is required by subsection (cX4) 
to provide assistance. 
"(5) STATE COORDINATOR.—The term 'State coordinator' means 
the individual appointed by the Governor of the State to carry 
out the activities described in paragraph (3)(B). 
"(6) STATE RURAL ECONOMIC DEVELOPMENT REVIEW PANEL.— 
The term 'State rural economic development review panel' or 
'panel' means an advisory panel that meets the requirements of 
section 366. 
"(c) DUTIES OF THE SECRETARY.—The Secretary shall, with respect 
to each eligible State— 
"(1) review the list, if any, transmitted pursuant to subsection 
366(bX6) by any State coordinator; 
"(2) determine whether each project described in an applica-
tion in the list meets the requirements of the rural development 
program under which the application seeks assistance; 
"(3) remove from the list any application for a project that 
does not meet the requirements; 
Reports. 
"(4) provide assistance, subject to available funds, to the 
projects in the applications remaining in the list after the list 
has (if necessary) been modified pursuant to paragraph (3), 
giving consideration to the order in which the applications for 
such projects are ranked by the respective State panel, and, if 
assistance is provided to any project without providing assist-
ance to all projects ranked higher in priority by the panel than 
such project, report to the panel, the Committee on Agriculture 
of the House of Representlatives, and the Committee on Agri-
culture, Nutrition, and Forestry of the Senate within ten days of 
determining to fund such lower ranked project on the reasons 
for that determination; 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 4003 
"(5) within thirty days after the date of the enactment of any 
Act providing appropriations for any designated rural develop-
ment prc^am for any fiscal year, notify each State of the 
amounts to be made available to such State under such program 
for such fiscal year, and the aggregate for such fiscal year of 
such amounts under all the designated rural development pro-
grams; 
"(6) pay per diem or otherwise reimburse each full-time offi-
cer or employee of the United States who is a member of a State 
rural economic development review panel for expenses incurred 
each day (including travel time) during which the officer or 
employee is engaged in the actual performance of a duty of the 
panel; 
"(7) from amounts appropriated for grants under any provi-
sion of section 306(a), msdce grants not to exceed $100,000 
annually to each eligible State for the administrative costs 
associated with the Stete rural economic development review 
panel meeting the requirements of section 366; and 
"(8) appoint a member to the State rural economic develop-
ment review panel as provided under section 366(cXl)(P). 
"(d) OFFICIAL INFORMATION.—The Secretary may appoint as 
nonvoting members, temporarily and for specific purposes, person-
nel from any department or agency of the United Stetes, with the 
consent of the head of such department or £^ency, with expertise 
not available among the members of any Stete rural economic 
development review panel as may be necessary to enable the panel 
to perform a duty described in section 366(b). 
(e) ALLOCATION O
F APPROPRIATED FUNDS.— 
"(1) INITIAL ALLOCATION.—The Secretary shall allocate the 
sums appropriated for direct loans, loan guarsintees, or grants 
for any designated rural development program made available 
to any eligible Stete under such program for any fiscal year to 
the projects specified in subsection (cX4) giving great weight to 
the order in which the applications for such projects are ranked 
on the list specified in subsection (cXD-
"(2) EQUITABLE REALLOCATION OF UNOBLIGATED FUNDS.—Not-
withstanding paragraph (1), the Secretary shall, on July 15 of 
. 
each year, and from time to time thereafter during the fiscal 
year as the Secretory determines appropriate, pool from among 
the eligible Stetes any unobligated funds appropriated for direct 
loans, loan guarantees, or grants for each designated rural 
development program and reallocate such funds among the 
eligible Stetes according to need, as determined by the 
Secretery. 
"(f) INAPPUCABILTTY OF FEDERAL ADVISORY COMMITTEE ACT.—The 
Federal Advisory Committee Act shall not apply to any Stete rural 
economic development review panel. 
"(g) No LIABILITY OF MEMBERS OF STATE RURAL ECONOMIC DEVEL-
OPMENT REVIEW PANELS.—The members of a Stete rurtd economic 
development review panel shall not be liable to any person with 
respect to any determination made by the panel. 
(h) ELIGIBILITY FOR WATER AND WASTE FACILITY LOANS.— 
"(1) RURAL ELECTRIFICATION PROGRAM BORROWERS.—Notwith-
standing any other provision of law, a borrower under title III of 
the Rural Electrification Act of 1936 shall be eligible to receive 
loans and grante under section 306 on an equal basis with any 
other applicant for such assistance, and the terms and condi-
104 STAT. 4004 
PUBLIC LAW 101-624—NOV. 28, 1990 
tions, rules, criteria and other provisions of section 306 shall 
apply to such a borrower. In the case of applications from such a 
borrower, the Administrator of the Rural 
Electrification 
Administration shall provide technical assistance with respect 
to water and waste facilities and loans and grants for such 
facilities. 
"(2) PROHIBITION ON RESTRICTING WATER AND WASTE FACIUTY 
SERVICES TO ELECTRIC CUSTOMERS.—The Secretary shall establish 
rules and procedures that prohibit borrowers under title III of 
the Rural Electrification Act of 1936 from conditioning or limit-
ing access to, or the use of, water and waste facility services 
financed under the Consolidated Farm and Rural Development 
Act if such conditioning or limiting is based on whether individ-
uals or entities in the area served or proposed to be served by 
such facility receive, or will accept, electric service from such 
borrower. 
7 use 2008a. 
"SEC. 366. STATE RURAL ECONOMIC DEVELOPMENT REVIEW PANEL. 
"(a) IN GENERAL.—In order for a State to become or remain an 
eligible State, the State must have a State rural economic develop-
ment review panel that meets all of the requirements of this section. 
"(b) DUTIES.—The panel must be required to advise the Secretary 
on the desirability of funding applications for funding from des-
ignated rural development programs, and, in developing such 
advice, the panel must have the following duties: 
"(1) REVIEW RURAL DEVELOPMENT PLANS OF LOCAL AREAS.—To 
review each area plan submitted by a local or regional area. 
"(2) 
EVALUATE AREA PLANS AND APPUCATIONS FOR ASSIST-
ANCE.—(A) AREA PLANS.—To evaluate, pursuant to a written 
policy and criteria, each area plan submitted by a local or 
regional area and either— 
"(i) accept any area plan that is technically and economi-
cally adequate, feasible, and likely to succeed in meeting 
the stated goals of the plan, unless the plan is incompatible 
with any other area plan for that area that has been 
accepted by the panel; or 
"(ii) return any plan that is technically or economically 
inadequate, infeasible, 
unlikely to be successful, 
or 
incompatible with any other area plan for that area that 
has been accepted by the panel, with an explanation of the 
reasons for the return with suggested alternative proposals. 
In evaluating area plans under this subparagraph, the panel 
must give great weight to the area plans or other comments 
submitted by intergovernmental development councils, or simi-
lar organizations made up of local elected officials, charged with 
the responsibility for rural or regional development. 
"(B) APPUCATIONS FOR ASSISTANCE.—To evaluate each applica-
tion for assistance to determine whether the project to be 
carried out in any area is compatible with the area plan for the 
area in which the project described in the application is pro-
posed, and either— 
"(i) accept any application that the panel determines to 
be compatible with such area plan; or 
"(ii) return to the Rural Development Administration 
any application that the panel determines to be incompat-
ible with such area plan. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 4005 
"(3) REVIEW AND RANK APPUCATIONS FOR ASSISTANCE UNDER 
DESIGNATED RURAL DEVELOPMENT PROGRAMS FROM AREAS WITH 
ACCEPTED AREA PLANS.—To review applications for assistance, 
that have been accepted pursuant to paragraph (2XB), for 
projects to be carried out in any area the area plan for which 
has been accepted pursuant to paragraph (2XA), taking into 
account the sources of assistance and related activities identi-
fied pursuant to section 365(b)(4XA), and to rank such applica-
tions, subject to paragraphs (4) and (5), pursuEuit to a written 
policy and criteria, in an order that takes into account— 
"(A) in the case of business projects described in the 
application— 
"(i) the extent to which a project would— 
"(I) stimulate rural development by creating new 
jobs of a permanent nature or retaining existing 
jobs by enabling new small businesses to be 
started, or existing businesses to be expanded by 
local or regional area residents who own and oper-
ate the businesses, 
"(11) contribute to the enhancement and the 
diversification of the local or regional area econ-
omy, 
(III) generate or retain jobs for local or regionsd 
area residents, 
"(IV) be carried out by persons with sufficient 
managerial capability, 
"(V) be likely to become financially viable, and 
"(VI) assist a local or regional area in over-
coming severe economic distress; 
"(ii) the distribution of assistance to projects in as 
many areas as possible in the State, with sensitivity to 
geographical distribution; 
"(iii) the technical aspect of the projects; 
"(iv) the market potential and marketing arrange-
ments for the projects; and 
"(v) the potential of such project to promote the 
growth of a rural community by improving the ability 
of the community to increase the number of persons 
residing therein and by improving the quality of life of 
such persons; and 
"(B) in the case of infrastructure and community facility 
projects described in the applications the extent to which a 
project would— 
"(i) have the potential to promote the growth of a 
rural community by improving the quality of life for 
local or regional area residents; 
"(ii) affect the health and safety of local or regional 
area residents; 
"(iii) affect business productivity gind efficiency; 
"(iv) enhance commercial business activity; 
"(v) have the potential to promote long-term growth, 
including by increasing the number of persons residing 
in a rural community; 
"(vi) address a severe loss or lack of water quality or 
quantity; 
"(vii) bring a community into compliance with Fed-
eral or State water or waste water standards; and 
104 STAT. 4006 
PUBLIC LAW 101-624—NOV. 28, 1990 
"(viii) consolidate water and waste systems and uti-
lize management efficiencies in new systems. 
"(4) 
PRIORITY RANKING FOR PROJECTS ADDRESSING HEALTH 
EMERGENCIES.—To give priority in reviewing and ranking, not-
withstanding the criteria established in paragraph (3), to ap-
plications for projects designed to address a health emergency 
declared to be such by the appropriate Federal or State govern-
ment agency. 
"(5) PRIORITY BASED ON NEED.—If in ranking applications 
pursuant to paragraphs (3) and (4), 2 or more applications are 
determined to have comparable strengths in their feasibility 
and potential for growth, to give priority to the applications for 
projects for which there is the greatest need. 
"(6) TRANSMIT UST OF RANKED APPUCATIONS.—To transmit to 
the State coordinator a list of all applications received and 
indicate on the list— 
"(A) for all applications accepted, the rank of such ap-
plications in accordance with paragraphs (3), (4) and (5); and 
"(B) for all applications returned, the fact that the ap-
plication was returned pursuant to paragraph (2) and in-
struct the State coordinator to transmit the list to the 
Secretary. 
"(7) AVAILABIUTY OF UST OF RANKED APPUCATIONS.—To m a k e 
available to the public the list of ranked applications submitted 
under paragraph (6) and to provide a brief explanation and 
justification of why the project applications received their 
prioritization. 
"(8) ESTABUSHMENT AND REVIEW OF WRITTEN POUCY AND CRI-
TERIA FOR EVALUATING AND RANKING APPUCATIONS.—To estab-
lish and annually review the written policy and criteria used by 
the panel in evaluating and ranking applications in accordance 
with this subsection to ensure that the policy and criteria are 
consistent with current rural developmental needs, and to pro-
vide for public input during the development of the initial 
policy and criteria. 
"(c) MEMBERSHIP.— 
"(1) VOTING MEMBERS.—The panel must be composed of not 
more than sixteen voting members who are representatives of 
rural aresis— 
"(A) one of whom is the Governor of the State or the 
person designated by the Governor to serve on the panel on 
behalf of the Governor for that year; 
"(B) one of whom is the director of the State agency 
responsible for economic and community development or 
the person designated by the director to serve on the panel 
on behalf of the director for that year; 
"(C) one of whom is appointed by a statewide association 
of beuiking organizations; 
"(D) one of whom is appointed by a statewide association 
of investor-owned utilities; 
"(E) one of whom is appointed by a statewide association 
of rural telephone cooperatives; 
"(F) one of whom is appointed by a statewide association 
of noncooperative telephone companies; 
"(G) one of whom is appointed by a statewide association 
of rural electric cooperatives; 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 4007 
"(H) one of whom is appointed by a statewide association 
of health care organizations; 
"(I) one of whom is appointed by a statewide association 
of existing local government-based planning and develop-
ment organizations; 
"(J) one of whom is appointed by the Governor of the 
State from either a statewide rural development organiza-
tion or a statewide association of publicly-owned electric 
utilities, neither of which is described in any of subpara-
graphs (C) through (I); 
"(K) one of whom is appointed by a statewide association 
of counties; 
"(L) one of whom is appointed by a statewide association 
of towns and townships, or by a statewide association of 
municipal leagues, as determined by the Grovernor; 
"(M) one of whom is appointed by a statewide association 
of rural water districts; 
"(N) the State director of the Federal small business 
development center (or, if there is no small business devel-
opment center in place with respect to the State, the direc-
tor of the State office of the Small Business Administra-
tion); 
"(O) the representative for that State of the Economic 
Development Administration of the Department of Com-
merce; and 
"(P) one of whom is appointed by the Secretary from 
among the officers and employees of the Federgd Govern-
ment. 
"(2) NONVOTING MEMBERS.—The panel must have not more 
than four nonvoting members who must serve in an advisory 
capacitv and are representatives of rural areas— 
(A) one of whom is appointed by the Governor, from 
names submitted by the dean, or the equivalent official, of 
each school or college of business of the colleges and univer-
sities in the State; 
"(B) one of whom is appointed by the Grovemor, from 
names submitted by the dean, or the equivalent official, of 
each school or college of engineering of the colleges and 
universities in the State; 
"(C) one of whom is appointed by the GrOvernor, from 
names submitted by the dean, or the equivalent official, of 
each school or college of agriculture of the colleges or 
universities in the State; and 
"(D) the director of the State agency responsible for 
extension services for the State. 
"(3) 
APPOINTMENT 
OF 
REPRESENTATIVES 
OF 
STATEWIDE 
ORGANIZATIONS BY THE GOVERNOR IN CERTAIN CASES.— 
"(A) No STATEWIDE ORGANIZATION.—If there is no state-
wide association or organization described in subparagraph 
(C), (D), (E), (F), (G), (H), (I), (K), (L), or (M) of paragraph (1) 
of the entities described in such subparagraph, the Gov-
ernor of the State will appoint an individual to fill the 
position or positions, as the case may be, described in the 
. applicable subparagraph from among nominations submit-
ted by local groups of such entities. 
"(B) MULTIPLE STATEWIDE ORGANIZATIONS.—If there is 
more than one of the statewide associations or organiza-
104 STAT. 4008 
PUBLIC LAW 101-624—NOV. 28, 1990 
tions described in subparagraph (C), (D), (E), (F), (G), (H), (I), 
(K), (L), or (M) of paragraph (1) of the entities described in 
such subparagraph, the Governor must select which 
organization is to name a member. The Governor must 
rotate such selection among such associations or organiza-
tions such that a representative of the selected association 
or organization serves no more than two years before an-
other such association or organization is selected by the 
Governor. 
"(4) FAILURE TO APPOINT PANEL MEMBERS.—The failure of the 
Grovernor, the Secretary of Agriculture, or an association or 
organization described in subparagraph (C), (D), (E), (F), (G), (H), 
(I), (K), (L), or (M) of paragraph (1) to appoint a member to the 
panel as required under this subsection shall not prevent a 
State from being determined to be an eligible State. 
"(d) NOTIFICATION.—Each statewide organization that selects an 
individual to represent the organization on the panel must have 
notified the Governor of the State of the selection. 
"(e) QUAUFICATIONS OF PANEL MEMBERS APPOINTED B
Y THE GOV-
ERNOR.—Each individusJ appointed to the panel by the Governor of 
the State will be specially qualified to serve on the panel by virtue of 
the individual's technical expertise in business and community 
development. 
"(f) VACANCIES.—A vacancy on the panel must be filled in the 
manner in which the original appointment was made. 
"(g) CHAIRPERSON AND VICE CHAIRPERSON.—The panel must have 
selected two members of the panel who are not officers or employees 
of the United States to serve as the chairperson and vice chair-
person of the panel for a term of one year. 
"(h) No COMPENSATION FOR FEDERAL MEMBERS.—Except as pro-
vided in section 365(cX6), each member of the panel who is an officer 
or employee of the Federal Government may not receive any com-
pensation or benefits, in addition to that which such officer or 
employee receives for performance of such officer or employee's 
regular emplojonent, by reason of service on the panel. 
"(i) RULES GOVERNING PANEL MEETINGS.— 
"(1) QUORUM.—A majority of the members of the panel must 
constitute a quorum for the purpose of conducting business of 
the panel. 
"(2) FREQUENCY OF MEETINGS.—The panel must meet not less 
frequently than quarterly. 
"(3) FIRST MEETING.—The State coordinator must schedule the 
first panel meeting. 
"(4) RECORDS OF MEETINGS.—The panel must keep records of 
the minutes of the meetings, deliberations, and evaluations of 
the panel, in sufficient detail to enable the panel to provide to 
interested persons the reasons for its actions.", 
(b) CONFORMING AMENDMENT.—Section 306(aX3) of the Consoli-
dated Farm and Rural Development Act (7 U.S.C. 1926(aX3)) is 
amended by striking "and not inconsistent" and all that follows 
through "undertaken for the area". 
SEC. 2317. LOAN AND LOAN GUARANTEE ALLOCATION AND TRANSFER 
The Consolidated Farm and Rural Development Act (7 U.S.C. 1921 
et seq.) is amended by adding after the sections added by the 
preceding provisions of this subtitle the following: 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 4009 
"SEC. 367. LIMITED TRANSFER AUTHORITY OF LOAN AMOUNTS. 
7 USC 2008b. 
"(a) TRANSFER OF FUNDS.—If the sums appropriated for direct 
loans for the water £ind waste or community facility program au-
thorized under section 306(a) and made available to any eligible 
State (within the meaning of section 365(bX3)) under such program 
for the fiscal year are insufficient to enable the Secretary to provide 
the full amount of the assistance requested for a project specified in 
section 365(cX4), the Secretary may transfer, subject to subsection (b) 
of this section, to one program from the other such program part or 
all of the sums appropriated for loans made available to the State 
for such other program. 
"(b) LIMITATION ON LOAN AMOUNTS TRANSFERRED.— 
"(1) AMOUNTS TRANSFERRED WITHIN CERTAIN STATES.—With 
regard to each eligible State (within the meaning of section 
365(bX3)), the amount of direct loan funds transferred from a 
program under this section shall not exceed the amount for 
such program left unobligated after obligating to each project in 
an application ranked higher in priority on the list described in 
section 365(b)(6) the full amount of assistance requested for each 
such project. 
"(2) 
AMOUNTS TRANSFERRED ON A NATIONAL BASIS.—With 
regard to all such eligible States, the amount of direct loan 
funds transferred in a fiscal year from a program under this 
section (after accounting for any offsetting transfers into such 
program) shall not exceed $9,000,000. 
"SEC. 368. ALLOCATION 
AND 
TRANSFER 
OF 
LOAN 
GUARANTEE 
7 USC 2008C. 
AUTHORITY. 
"(a) ALLOCATION OF LOAN GUARANTEE AUTHORITY.—The Secretary 
shall allocate among all States the amounts appropriated for loan 
guarantees under the water and waste or community facility pro-
gram authorized under section 306(a), and the business and industry 
loan program authorized under section 310B, in a manner similar to 
that used for the allocation of direct loan and grant funds appro-
priated for such programs, and that the Secretary determines to be 
fair, reasonable, and appropriate. 
"(b) TRANSFER OF LOAN GUARANTEE AUTHORITY.— 
"(1) IN GENERAL.—If the sums appropriated for loan guaran-
tees and made available to any eligible State (within the mean-
ing of section 365(bX3)) under a program specified in subsection 
(a) for the fiscal year are insufficient to enable the Secretary to 
provide the full amount of the assistance requested for a project 
specified in section 365(cX4), the Secretary may transfer to the 
program from the other such programs part or all of the sums 
appropriated for loan guarantees made available to such eli-
gible State for such other program for such fiscal year. 
"(2) LIMITATION ON GUARANTEE AMOUNTS TRANSFERRED.—With 
regard to each such eligible State, the amount of loan guaran-
tees transferred from a program under this section shall not 
exceed the amount for such program left unobligated after 
obligating to each project in an application ranked higher in 
priority on the list described in section 366(bX6) the full Eunount 
of assistance requested for each such project.". 
104 STAT. 4010 
PUBLIC LAW 101-624—NOV. 28, 1990 
Subtitle C—Water and Waste Facilities 
SEC. 2321. INCREASE ON LIMITATION OF AUTHORIZATION FOR WATER 
AND WASTE GRANTS. 
Section 306(aX2) of the Consolidated Farm and Rural Develop-
ment Act (7 U.S.C. 1926(aX2)) is amended by striking ": Provided, 
That for fiscal years commencing after September 30, 1981, such 
grants may not exceed $154,900,000 in any fiscal year". 
Loan programs. 
SEC. 2322. WATER AND WASTE FACILITY FINANCING. 
(a) AUTHORITY.—The Secretary of Agriculture shall make loans to 
individuals or entities who are borrowers under title III of the Rural 
Electrification Act of 1936 (7 U.S.C. 930 et seq.) (in this section 
referred to as the "borrower"), to the extent of qusdifying applica-
tions therefor, to enable such borrowers to provide water and waste 
facility services in areas served by such borrowers. 
flj) LIMITATION.—Loans made under subsection (a) shall not, unless 
otherwise specified by law, exceed an amount equal to 10 percent of 
the total amount of insured loans under the Rural Electrification 
Act of 1936 authorized during the fiscal year in which such loan is 
made 
for 
rural 
electrification 
and 
telephone 
purposes, 
or 
$40,000,000, whichever is less. Such limitations shall be in ad(Ution 
to the total amount of insured loans authorized for electrification 
and telephone purposes. 
(c) PRIORITY.—In reviewing applications for loans under this 
section, the Secretary shall consider— 
(1) whether the loan is necessary to enable the communities to 
be served to comply with applicable Federal or State environ-
mental laws; 
(2) whether the individuals residing in the area for which 
service is proposed, and any local government entities, are in 
favor of the borrower providing such services in the area; 
(3) the income, unemplo3mient, and other characteristics of 
the area to be served; 
(4) the degree of deprivation faced by residents of the area to 
be served as a result of the lack of safe drinking water, adequate 
water supplies, sewage treatment and other waste disposal 
facilities; 
(5) the impact that the availability of safe water supplies, 
waste disposal and similar services would be likely to have on 
enhancing the prospects for economic growth within the area to 
be served; 
(6) the degree to which a loan that may be provided under this 
subsection is necessary to ensure that water and waste disposal 
services are available in the area to be served by such loan at 
costs that do not exceed those charged in other nearby areas; 
(7) the impact of the proposed loan on the retention of the 
property and service territory of the borrower, or in protecting 
the security given on outstanding loans provided to the bor-
rower; and 
(8) whether the water and waste facility projects described in 
the application will duplicate any existing facilities, and 
whether the borrower will coordinate its water and waste facil-
ity operations with similar operations in the area, including 
efforts to achieve economies of scale through joint billing, collec-
tion, or other operations with nearby systems in order to reduce 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 4011 
the costs, improve the operations, or otherwise assist such 
systems. 
(d) COORDINATION,— 
(1) OTHER PROGRAMS AND REQUIREMENTS.— 
(A) OTHER PROGRAMS.—The Secretary shall ensure that 
the program established under this section is coordinated 
with the programs authorized and established under section 
306 of the Consolidated Farm and Rural Development Act, 
and will attempt to coordinate the lending activities under 
this section with similar activities conducted by other 
entities. 
(B) REQUIREMENTS.—Loans made under this section shall 
be subject, in the same manner as loans made under section 
306 of the Consolidated Farm and Rural Development Act, 
to the provisions of section 306(aX9) and 306(aX10) of such 
Act (which require approvals by State water pollution con-
trol agencies), sections 306(aX19) (A) and (B) of such Act 
(which include certain requirements in connection with the 
technical design and choice of materials for water and 
waste systems), and section 306(b) of such Act (which con-
cerns the curtailment or limitation of service). 
(2) ASSIGNMENT OF DUTIES.—The Secretary shall determine 
whether the Rural Electrification Administration possesses 
greater expertise, as compared with the Farmers Home 
Administration, in the areas of utility accounting, utility 
management and financial analysis, advice and assistance, and 
other aspects of utility operations and engineering. If the Sec-
retary determines that the Rural Electrification Administration 
possesses greater expertise in such areas, the Secretary shall 
require the Rural Electrification Administration to provide 
technical assistance, and assist in the processing of applications 
under this section. 
(3) PROHIBITION ON UMITING ACCESS.—The Secretary shall Regulations, 
establish rules and procedures that prohibit borrowers from 
conditioning or limiting access to, or the use of, any water and 
waste facility services that are financed under this section. Such 
rules and procedures shall be based on whether individugds or 
entities in the area for which such facility is proposed receive, 
or will accept, electric service from such borrower. 
(e) TERMS.— 
(1) IN GENERAL.—Loans made under this section shall be for 
the same repayment period as insured loans made by the 
Administrator of the Rural Electrification Administration to 
such borrowers under title III of the Rural Electrification Act of 
1936 (7 U.S.C. 930 et seq.) and interest rates on loans made 
under this section shall not exceed 5 percent. 
(2) INTEREST RATE.—The Secretary shall determine the in-
terest rate to be charged on loans made under this section on 
the basis of— 
(A) ensuring that the cost to consumers for water and 
waste disposal services financed with loans provided under 
this section does not, to the extent possible, exceed rates 
charged in areas that are near the area served by the 
borrower; 
(B) the income and other characteristics of the individ-
uals to be served through the provision of such loans; and 
104 STAT. 4012 
PUBLIC LAW 101-624—NOV. 28, 1990 
(C) encouraging borrowers to obtain private sector cap-
ital, as provided for in subsection (f), to supplement loans 
made under this section. 
(f) PRIVATE SECTOR CAPITAL.— 
(1) MATCHING FUNDS REQUIRED.—The Secretary shall not pro-
vide assistance to a borrower under this section unless the 
borrower has made a commitment to the Secretary, and dem-
onstrates to the Secretary that the borrower is able, to invest 
from its own funds an amount equal to the amount of assistance 
to be so provided. 
(2) INTEREST RATE REDUCTION AUTHORIZED.—In order to facili-
tate the obtaining of private sector capital, the Secretary may, 
on a case-by-case basis, reduce the interest rate on loans pro-
vided under this section when such reduction is appropriate and 
will enable the borrower to obtain such private capital. 
(g) APPROPRIATIONS.—The Secretary may make loans under this 
section to the extent provided for in appropriations Acts, except that 
during any fiscal year the amount of such loans, unless otherwise 
provided by law, shall not exceed 10 percent of the amount au-
thorized for all insured loans under title III of the Rural Electrifica-
tion Act of 1936 (7 U.S.C. 930 et seq.), or $40,000,000, whichever 
amount is less. Funds appropriated under this subsection shall 
remain available until expended. 
(h) REPAYMENT.—Appropriations made for purposes of this section 
shall be placed in a separate account. Advances on loans made 
under this section shall be made from such account, and pajnnents 
on such loans shall be returned to the account for use by the account 
in making advances on future loans. 
(i) FULL USE.— 
(1) IN GENERAL.—Subject to paragraph (2) and (3) and any 
other limitations that may be imposed by law, during each fiscal 
year the Secretary shall undertake all reasonable efforts to 
make full use of any funds held by the account established 
under subsection (h). 
(2) CEIUNG ON LOANS.—During any particular fiscal year the 
aggregate amount of the loans the Secretary may make under 
this section, from amounts in the account established under 
subsection (h) that are not attributable to repayments, shall be 
the lesser of— 
(A) 10 percent of the amount of loans made under title III 
of the Rural Electrification Act of 1936 (7 U.S.C. 930 et seq.) 
during the fiscal year; or 
(B) $40,000,000. 
(j) REPLENISHMENT OF WATER AND WASTE FACILITY FUND.— 
(1) CALCULATION OF TOTAL AMOUNT OF LOANS.—At the end of 
each fiscal year the Secretary shall calculate— 
(A) the total amount of loans made under this section 
during such fiscal year; and 
(B) the amount of water or waste facility loans made 
under section 306 of the Consolidated Farm and Rural 
Development Act to borrowers described in subsection (a) of 
this section. 
(2) TRANSFER OF AMOUNTS.—Notwithstanding subsections (g) 
and (i), if any amount appropriated under subsection (g) remains 
available at the end of any fiscal year— 
(A) the Secretary shall transfer such available amount to 
the fund used to make water or waste facility loans under 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 4013 
section 306 of the Consolidated Farm and Rural Develop-
ment Act, to the extent not exceeding the amount of any 
loans made under such section 306 to borrowers under the 
Rural Electrification Act of 1936; and 
(B) any such loan to such borrower made under such 
section 306 shall be— 
(i) subject to the terms, conditions and other require-
ments of section 306A; and 
(ii) repaid to the account established by subsection 
(h). 
SEC. 2323. WATER AND WASTE LENDING BY BANKS FOR COOPERATIVES. 
(a) AUTHORIZATION.—Section 3.7 of the Farm Credit Act of 1971 
(12 U.S.C. 2128) is amended by adding at the end the following new 
subsection: 
"(f) The banks for cooperatives may, for the purpose of the 
installation, expansion, or improvement of water and waste disposal 
facilities in rural areas, make and participate in loans and commit-
ments £ind to extend other technical and financial assistance to— 
"(1) cooperatives formed specifically for the purpose of 
establishing or operating such facilities; and 
"(2) public and quasi-public agencies and bodies, and other 
public and private entities that, under authority of State or 
local law, establish or operate such facilities. 
For purposes of this subsection, the term 'rural area' means all 
territory of a State that is not within the outer boundary of any city 
or town having a population of more than 20,000 based on the latest 
decennial census of the United States.". 
(b) CONFORMING AMENDMENT.—Section 3.80bXl) of the Farm 
Credit Act of 1971 (12 U.S.C. 2129(bXl)) is amended by adding at the 
end the following new subparagraph: 
"(D) Any cooperative or other entity described in section 
3.7(a". 
SEC. 2324. RURAL WASTEWATER TREATMENT CIRCUIT RIDER PROGRAM. 7 USC 1926 note. 
(a) EsTABUSHMENT.—The Secretary shall establish a national 
rural wastewater circuit rider grant program that shall be modeled 
after the existing National Rural Water Association Rural Water 
Circuit Rider Program that receives funding from the Farmers 
Home Administration. 
Ob) LIMITATION ON AUTHORIZATION OF APPROPRIATIONS.—There are 
authorized to be appropriated $4,000,000 for each fiscal year to carry 
out the program established under subsection (a). 
SEC. 2325. TECHNICAL ASSISTANCE FOR CERTAIN SOLID WASTE MANAGE-
MENT. 
Section 310B(b) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1932(b)) is amended— 
(1) by inserting "(1)" before "The Secretary"; and 
(2) by adding at the end the following new paragraph: 
"(2) The Secretary may make grants to nonprofit organizations for 
the provision of regional technical assistance to local and regional 
governments and related agencies for the purpose of reducing or 
eliminating pollution of water resources and improving the plan-
ning and management of solid waste disposal facilities. Grants made 
under this paragraph for the provision of technical assistance shall 
be made for 100 percent of the cost of such assistance.". 
104 STAT. 4014 
PUBLIC LAW 101-624—NOV. 28, 1990 
SEC. 2326. EMERGENCY COMMUNITY WATER ASSISTANCE GRANT PRO-
GRAM. 
(a) EsTABUSHMENT OF PROGRAM.—Subtitle A of the Consolidated 
Farm and Rural Development Act is amended by inserting after 
section 306A (7 U.S.C. 1926a) the following new section: 
7 use 1926b. 
"SEC. 306B. EMERGENCY COMMUNITY WATER ASSISTANCE GRANT PRO-
GRAM. 
"(a) IN GENERAL.—The Secretary shall make grants in accordance 
with this section to assist the residents of rural areas and small 
communities to secure adequate quantities of safe water— 
"(1) after a significant decline in the quantity or quality of 
water available from the water supplies of such rural areas and 
small communities; or 
"(2) when repairs, partial replacement, or significant mainte-
nance efforts on established water systems would remedy an 
acute shortage of quality water or would remedy a significant 
decline in the quantity or quality of water that is available. 
"Ot)) PRIORITY.—In carrying out subsection (a), the Secretary shall 
give priority to projects described in subsection (aXD, and provide at 
least 70 percent of all such grants to such projects. 
"(c) EuGiBiUTY.—To be eligible to obtain a grant under this 
section, an applicant shall— 
"(1) be a public or private nonprofit entity; and 
"(2) in the case of a grant made under subsection (aXl), 
demonstrate to the Secretary that the decline referred to in 
such subsection occurred within 2 years of the date the applica-
tion for such grant was made. 
"(d) USES.— 
"(1) IN GENERAL.—Grants made under this section may be 
used for waterline extensions from existing systems, la5dng of 
new waterlines, repairs, significant maintenance, digging of 
new wells, equipment replacement, hook and tap fees, and any 
other appropriate purpose associated with developing sources of, 
or treating, storing, or distributing water, and to assist commu-
nities in complying with the requirements of the Federal Water 
Pollution Control Act (33 U.S.C. 1251 et seq.) or the Safe Drink-
ing Water Act (42 U.S.C. 300f et seq.). 
"(2) JOINT PROPOSALS.—This section shall not preclude rural 
communities from submitting joint proposals for emergency 
water assistance, subject to the restrictions of subsection (e). 
Such restrictions should be considered in the aggregate, depend-
ing on the number of communities involved. 
"(e) RESTRICTIONS.—Grants made under this section shall not be 
used to assist any rural area or community that— 
"(1) includes any area in any city or town with a population in 
excess of 5,000 inhabitants according to the most recent decen-
nial census of the United States; or 
"(2) has a median household income in excess of the State 
nonmetropolitan median household income according to the 
most recent decennial census of the United States. 
Not less than 75 percent of the funds allocated under this section 
shall be gdlocated to rural communities with populations that do not 
exceed 3,000 inhabitants. 
"(f) MAXIMUM GRANTS.—Grants made under this section may not 
exceed— 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 4015 
"(1) in the case of each grant made under subsection (aXl), 
$500,000; and 
"(2) in the case of each grant made under subsection (aX2), 
$75,000. 
"(g) FULL FUNDING.—Subject to subsection (e), each grgint under 
this section shall be made in an amount equal to 100 percent of the 
costs of the projects with respect to which the grant is made. 
"(h) APPLICATION.—The Secretary shall develop a nationally 
competitive application process to award grants under this section. 
Such process shall include criteria for evaluating applications, 
including population, median household income, and the severity of 
the decline in quantity or quality of water. The Secretary shall 
make every effort to review and act on applications within 60 days 
of the date that such applications are submitted. 
"(i) LIMITATIONS ON AUTHORIZATION OF APPROPRIATIONS.—To carry 
out this section, there are authorized to be appropriated $25,000,000 
for fiscal year 1991, and $10,000,000 for fiscal year 1992. To the 
extent the amount authorized to be appropriated for a fiscal year 
under this subsection exceeds the amount so appropriated, such 
excess amount shall remain authorized to be appropriated for 
succeeding fiscal years until fully appropriated.". 
(b) IMPLEMENTATION.— 
(1) REGULATIONS.—The Secretary shall publish— 
(A) interim final regulations to carry out section 306B of 
the Consolidated Farm and Rural Development Act not 
later than 45 days after the date of enactment of this Act; 
and 
(B) final regulations to carry out section 306B not later 
than 90 days after such date of enactment. 
(2) FUNDS.— 
(A) OBLIGATION.—The Secretary shall obligate 70 percent 
of the funds made available for the first fiscal year for 
which appropriations are made under section 306B(i) of the 
Consolidated Farm and Rural Development Act not later 
» 
than 5 months after the date such funds are appropriated. 
(B) RELEASE.—The Secretary may make grants under 
section 306B(aXl) of Consolidated Farm and Rural Develop-
ment Act before final regulations are issued under para-
graph (IXB) of this subsection. 
SEC. 2327. WATER AND WASTE FACILITY LOANS AND GRANTS TO ALLEVI-
ATE HEALTH RISKS. 
Subtitle A of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1922 et seq.) is amended by adding sifter the section added 
by section 2326 of this Act the following new section: 
•SEC. 306C. WATER AND WASTE FACILITY 
ALLEVIATE HEALTH RISKS. 
LOANS AND GRANTS TO 
"(a) LOANS AND GRANTS TO PERSONS OTHER THAN INDIVIDUALS.— 
"(1) IN GENERAL.—The Secretary shall make or insure loans 
and make grants to rural water supply corporations, coopera-
tives, or similar entities, Indian tribes on Federal and State 
reservations and other federally recognized Indian tribes, and 
public agencies, to provide for the conservation, development, 
use, and control of water (including the extension or improve-
ment of existing water supply systems), and the installation or 
improvement of drainage or waste disposal facilities and essen-
7 u s e 1926b 
note. 
Indians. 
7 u s e 1926c. 
104 STAT. 4016 
PUBLIC LAW 101-624—NOV. 28, 1990 
tial community facilities including necessary related equip-
ment. Such loans and grants shall be available only to provide 
such water and waste facilities and services to communities 
whose residents face significant health risks, as determined by 
the Secretary, due to the fact that a significant proportion of the 
community's residents do not have access to, or are not served 
by, adequate affordable— 
"(A) water supply systems; or 
"(B) waste disposal facilities. 
"(2) CERTAIN COUNTIES TARGETED.—Loans and grants under 
paragraph (1) shall be made only if the loan or grant funds will 
be used primarily to provide water or waste services, or both, to 
residents of a county— 
"(A) the per capita income of the residents of which is not 
more than 70 percent of the national average per capita income, 
as determined by the Department of Commerce; and 
"(B) the unemplo3mient rate of the residents of which is not 
less than 125 percent of the national average unemplojrment 
rate, as determined by the Bureau of Labor Statistics. 
"(b) LOANS AND GRANTS TO INDIVIDUALS.— 
"(1) IN GENERAL.—The Secretary shall make or insure loans 
and msike grants to individuals who reside in a community 
described in subsection (aXD for the purpose of extending water 
supply and waste disposal systems or connecting such systems 
to the residences of such individuals. Such loans shall be at a 
rate of interest no greater than the Federal Financing Bank 
rate on loans of a similar term at the time such loans are made. 
The repayment of such loans shall be amortized over the 
expected life of the water supply or waste disposal system to 
which the residence of the borrower will be connected. 
"(2) MANNER IN WHICH LOANS AND GRANTS ARE TO BE MADE.— 
Loans and grants to individuals under paragraph (1) shall be 
made— 
"(A) directly to such individuals by the Secretary; or 
"(B) to such individuals through the rural water supply 
corporation, cooperative, or similar entity, or public agency, 
providing such water supply or waste disposal services, 
pursuant to regulations issued by the Secretary. 
"(c) PREFERENCE.—The Secretary shall give preference in the 
awarding of loans and grants— 
"(1) under subsection (a) to rural water supply corporations, 
cooperatives, or similar entities, or public £igencies, that propose 
to provide water supply or waste disposal services to the resi-
dents of those rural subdivisions commonly referred to as 
colonias, that are characterized by substandard housing, inad-
equate roads and draineige, and a lack of adequate water or 
waste facilities; and 
"(2) under subsection (b) to individuals who reside in a rural 
subdivision commonly referred to as a colonia, that is character-
ized by substandard housing, inadequate roads and drainage, 
and a lack of adequate water or waste facilities. 
"(d) COOPERATIVE DEFINED.—For purposes of this section, the term 
'cooperative' means a cooperative formed specifically for the pur-
pose of the installation, expansion, improvement, or operation of 
water supply or waste disposal facilities or systems. 
"(e) LIMITATIONS ON AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated— 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 4017 
"(1) for grants under this section, $30,000,000 for each fiscal 
year; and 
"(2) for loans under this section, $30,000,000 for each fiscal 
year.". 
SEC. 2328. WATER OR WASTE DISPOSAL LOANS TO BENEFIT RURAL 
BUSINESSES. 
Section 306(aXl) of the Consolidated Farm and Rural Develop-
ment Act (7 U.S.C. 1926(aXl)) is amended by inserting "rural 
businesses," after "farm laborers,". 
SEC. 2329. LIMITATION ON CONDITIONS FOR WATER AND SEWER GRANTS 
AND LOANS. 
Section 306(a) of the Consolidated Farm and Rursd Development 
Act (7 U.S.C. 1926(a)) is amended by adding at the end the following 
new paragraph: 
"(20) In making or insuring loans or making grants under this 
subsection, the Secretary may not condition approval of such loans 
or grants upon any requirement, condition or certification other 
than those specified under this Act.". 
Subtitle D—Enhancing Human Resources 
T
e
i
e
-
communications. 
CHAPTER 1—DISTANCE LEARNING AND MEDICAL LINK 
PROGRAMS 
SEC. 2331. PURPOSE. 
7 USC 950 aaa. 
The purposes of this chapter are to provide incentives for local 
telephone exchange carriers, rured community facilities and rural 
residents to improve the quality of phone service, to provide access 
to advEinced telecommunications services and computer networks, 
and to improve rural opportunities. 
SEC. 2332. GOAL. 
7 USC 950 aaa-1. 
It is a goal of the Federal government to make affordable ad-
vgmced telecommunications available to rural residents, including 
services such as reliable facsimile document and data transmission, 
multifrequency tone signaling services, 911 emergency service with 
automatic number identification, interactive audio and visual trans-
missions, voicemail services designed to record, store, and retrieve 
voice messages, and other advanced telecommunications services. 
SEC. 2333. DEFINITIONS. 
7 USC 950 aaa-2. 
As used in this chapter: 
(1) ADMINISTRATOR.—The term "Administrator" means the 
Administrator of the Rural Electrification Administration. 
(2) COMMUNICATION SATELLITE GROUND STATION COMPLEX.— 
The term "communication satellite ground station complex" 
includes transmitters, receivers, and communications antennas 
at the Earth station site together with the interconnecting 
terrestrial transmission facilities (cables, line, or microwave 
facilities) and modulating and demodulating equipment nec-
essary for processing traffic received from the terrestrial dis-
tribution system prior to transmission via satellite and the 
traffic received from the satellite prior to transfer to terrestrial 
distribution systems. 
104 STAT. 4018 
PUBLIC LAW 101-624—NOV. 28, 1990 
(3) COMPREHENSIVE RURAL TELECOMMUNICATIONS PLAN.—The 
term "comprehensive rural telecommunications plan" means a 
plan submitted by an applicant for a grant under this chapter. 
Each such plan shall include— 
(A) a detailed explanation of the proposed rural tele-
communications system, how such system is to be funded, 
and a description of the intended uses for grants received 
from the Administrator under this chapter; 
(B) an explanation of the manner in which such plan 
complies with any requirements imposed by the Adminis-
trator under this chapter or otherwise imposed under sec-
tion 2334; 
(C) a listing of the proposed purchases or leases of tele-
communications terminal equipment, telecommunications 
transmission facilities, data terminal equipment, inter-
active video equipment, computer hardware and software 
systems, and components that process data for transmission 
via telecommunications, computer network components, 
communication satellite ground station equipment, or any 
other elements of the telecommunications system designed 
to further the purposes of this chapter, that the applicant 
intends to build or fund using the grant funds; 
(D) an explanation of the special financial or other needs 
of the affected rural communities eind of the applicants for 
such grant assistance; 
(E) an analysis of the relative costs and benefits of propos-
als for leasing or purchasing of facilities, equipment, compo-
nents, hardware and software, or other items; and 
(F) a description of the consultations with the appropriate 
local telephone exchange carrier or carriers and with a 
wide variety of additional telecommunications service 
providers (including other interexchange carriers, cable 
television operators, enhanced service providers, providers 
of satellite services and telecommunications equipment 
manufacturers and distributors), and the anticipated role of 
such providers in the proposed telecommunications system. 
(4) COMPUTER NETWORKS.—The term "computer networks" 
refers to computer hardware and software, terminals, signal 
conversion 
equipment 
including 
both 
modulators 
and 
demodulators, or related devices, used to communicate with 
other computers to process and exchange data through a tele-
communication network in which signals are generated, modi-
fied, or prepared for transmission, or received, via telecommuni-
cations terminal equipment and telecommunications trans-
mission facilities. 
(5) DATA TERMINAL EQUIPMENT.—The term "data terminal 
equipment" refers to equipment that converts user information 
into data signals for transmission, or reconverts the received 
data signals into user information, and is normally found on the 
terminal of a circuit and on the premises of the end user. 
(6) END USER.—^The term "end user" means rural community 
facilities or persons associated with those facilities who partici-
pate in the programs established under this chapter. 
(7) FIBER-OPTIC CABLE.—The term "fiber-optic cable" means a 
bundle of optical transmission elements or waveguides usually 
consisting of a fiber core and fiber cladding that can guide a 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 4019 
lightwave and that are incorporated into an assembly of mate-
rials that provide tensile strength smd external protection. 
(8) INTERACTIVE VIDEO EQUIPMENT.—The term "interactive 
video equipment" refers to equipment used to produce and 
prepare for transmission audio and visual signals from at least 
two distant locations such that individuals at such locations can 
verbally and visually communicate with each other, and such 
equipment includes monitors, other display devices, cameras or 
other recording devices, audio pickup devices, and other related 
equipment. 
(9) SECRETARY.—The term "Secretary" means the Secretary of 
Agriculture. 
(10) 
TELECOMMUNICATIONS TRANSMISSION FACILITIES.—The 
term "telecommunications transmission facilities" refers to 
those facilities that transmit, receive, or carry data between the 
telecommunications terminal equipment at each end of a tele-
communications circuit or path. Such facilities include micro-
wave antennae, relay stations and towers, other telecommuni-
cations antennae, fiber-optic cables and repeaters, coaxial 
cables, communication satellite ground station complexes, 
copper cable electronic equipment associated with telecommuni-
cations transmissions, and similar items as defined by the 
Administrator. 
(11) TELECOMMUNICATIONS TERMINAL EQUIPMENT.—The term 
"telecommunications terminal equipment" refers to the assem-
bly of telecommunications equipment at the end of a circuit, 
normally located on the premises of the end user, that inter-
faces with telecommunications transmission facilities, and that 
is used to modify, convert, encode, or otherwise prepare signals 
to be transmitted via such telecommunications facilities, or that 
is used to modify, reconvert or carry signals received from such 
facilities, the purpose of which is to accomplish the goal for 
which the circuit was established. 
SEC. 2334. PROVISIONS RELEVANT TO TELECOMMUNICATIONS PRO- 7 USC 950aaa-3. 
GRAMS. 
(a) ADMINISTRATION.—The Administrator shall be responsible for 
the administration of this chapter. 
(b) RULEMAKING.—Not later than 160 days after the date of enact-
ment of this Act, the Administrator shsdl promulgate final regula-
tions, under the notice and comment rulemaking requirements 
described in section 553 of title 5, United States Code, that establish 
the telecommunications programs authorized in this chapter. 
(c) PRIORITY.—The Administrator shall establish procedures to 
target the benefits of this chapter to the rural areas and grant 
applicants that demonstrate the need for such assistance, taking 
into consideration the relative needs of all applicants, the needs of 
the affected rural communities, and the financial ability of the 
applicants to otherwise secure or create telecommunications sys-
tems. 
(d) WAIVERS.—If the Administrator determines that a compelling 
need is present, the Administrator may modify any of the defini-
tions in section 2333. 
(e) EXPEDITING COORDINATED TELEPHONE LOANS.—The Adminis-
trator shall establish and implement procedures to ensure that 
expedited consideration and determination is given to applications 
104 STAT. 4020 
PUBLIC LAW 101-624—NOV. 28, 1990 
for loans and advances of funds submitted by local exchange carriers 
under this chapter— 
(1) to enable such exchange carriers to provide adveuiced 
telecommunications services in rural areas; and 
(2) that contain elements of any telecommunications project 
approved by the Administrator under this chapter that will be 
completed by such local telephone exchange carriers but that is 
not covered by any grant made under this chapter. 
(f) GRANT APPROVAL PROCESS.— 
(1) MODIFICATIONS.—The Administrator may request modifica-
tions or changes in any proposal described in a grant applica-
tion submitted under this chapter. 
(2) LEVELS OF FUNDING.— 
(A) IN GENERAL.—The Administrator may offer to fund 
grant applications under this chapter at any levels that the 
Administrator considers appropriate but not exceeding any 
percentage levels described in this chapter. 
(B) CONSIDERATIONS.—After taking into consideration the 
nationwide demands for grant assistance and the costs 
and benefits of any proposed purchases or leases of tele-
communications 
transmission 
facilities, 
telecommuni-
cations terminal equipment, computer network compo-
nents, and other equipment or facilities, the Administrator 
shall make grants based on— 
(i) the worthiness of the application; 
(ii) the financial needs of the applicant; 
(iii) the need of the affected rural communities for 
the proposed projects; and 
(iv) other factors determined appropriate by the 
Administrator. 
(g) JOINT USE OF TELECOMMUNICATIONS TRANSMISSIONS FACIU-
TiES.—In issuing regulations implementing this chapter, and in 
requesting changes in, or approving applications for grants, the 
Administrator shall give a priority, to the extent reasonable and 
appropriate, to provide funding for such facilities that can be jointly 
shared by projects established under this chapter. 
(h) EXPEDITED LOANS FOR TELEPHONE TRANSMISSION FACILITIES.— 
(1) IN GENERAL.—Grants to cover the costs of installing tele-
communication transmission facilities shall not be provided to 
approved end users if the local telephone exchange carrier 
providing telephone service, as defined in section 203(a) of the 
Rural Electrification Act of 1936 (7 U.S.C. 924(a)), will install 
such facilities through the use of expedited telephone loans as 
described in subsection (e) under the conditions and deadlines 
described in this section or through other financing procedures. 
(2) NOTIFICATION OF LOCAL EXCHANGE CARRIER.—Each 
ap-
plicant for a grant for a rural telecommunications program 
established under this chapter shall notify the appropriate local 
telephone exchange carrier regarding the application filed with 
the Administrator for such grant and shall attempt to work 
with such carrier in developing the rural telecommunications 
project. The Administrator shall publish notice of applications 
received for grants under this chapter for rural telecommuni-
cations programs and shall make such applications available for 
inspection by any provider described in section 2333(3XF). 
(3) DEADUNE IMPOSED ON THE ADMINISTRATOR.—Not later than 
45 days after the receipt of a completed application for an 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 4021 
expedited telephone loan, the Administrator shall respond to 
the application. The Administrator shall notify the applicant in 
writing of its decision regarding each such expedited loan 
application. 
SEC. 2335. RURAL COMMUNITY ACCESS TO ADVANCED TELECOMMUNI- 7 USC 950aaa-4. 
CATIONS. 
(a) PURPOSE.— 
(1) IN GENERAL.—It is the purpose of the progrsun established 
under this chapter to encourage and improve the use of tele-
communications, computer networks, and related advanced 
technologies, by persons associated with end users, including 
students and teachers, medical professionals, smgdl businesses, 
and other residents living in rural areas associated with rural 
community facilities in rural areas. 
(2) GRANTS.—Grants shall be made under this chapter to end 
users to fund up to 100 percent of each comprehensive rural 
telecommunications plan £is approved by the Administrator. 
(b) GRANTS.— 
(1) GENERAL AUTHORIZATION.—The Administrator may make 
grants to accomplish the purposes of the program established 
under this chapter in amounts that shall not exceed the levels 
set forth in paragraph (3). 
(2) DISBURSEMENT.—In order to facilitate appropriate plan-
ning for, and continuity of, the program established under this 
chapter, the Administrator may obligate funds appropriated 
during a particular year for disbursement in a subsequent year 
or years, and the total of funds so appropriated and obligated 
during a year may exceed the limitations described in para-
graph (1). 
(3) LIMITATIONS ON AUTHORIZATION OF APPROPRIATIONS.—To 
carry out this chapter, there are authorized to be appropriated 
$25,000,000 for fiscal year 1991, $50,000,000 for each of fiscal 
years 1992 and 1993, and $60,000,000 for each of the fiscal years 
1994 and 1995. Amounts appropriated under this paragraph 
shall remain available until expended. 
(4) USE OF FUNDS.—Grants under this chapter shall be made 
available to end users to be used for facilities, equipment, 
activities, and other uses as described in the approved rural 
telecommunications plan to achieve the purpose of this chapter, 
including— 
(A) the development and acquisition of instructional 
programming; 
(B) the development and acquisition, through lease or 
purchase, of computer hardware and software, audio and 
visual equipment, computer network components, tele-
communications terminal equipment, telecommunications 
transmission facilities, data terminal equipment, or inter-
active video equipment, and other facilities that would 
further the purposes of the programs authorized by this 
chapter; 
(C) providing technical assistance and instruction for the 
development or use of such programming, equipment, or 
facilities; or 
(D) other uses that are consistent with achieving the 
purposes of this chapter as approved by the Administrator. 
104 STAT. 4022 
PUBLIC LAW 101-624—NOV. 28, 1990 
(5) LOCAL EXCHANGE CARRIERS.—Under the conditions de-
scribed in section 2334(h), expedited loans may also be made, to 
carry out any project authorized in this chapter, to local ex-
change carriers providing telephone service (as defined in sec-
tion 2333(a) of the Rural Electrification Act of 1936 (7 U.S.C. 
924(a))), to cover the costs of telecommunications transmission 
facilities. 
(6) INFORMATIONAL EFFORTS.—The Administrator shall estab-
lish and implement procedures to carry out informational ef-
forts to advise potential end users located in rural areeis of each 
State about the program authorized by this chapter. 
(7) LIMITS ON GRANTS.—Grants awarded under this chapter 
for an end user shall not be used for the salaries or expenses of 
an end user. 
(c) REGULATIONS.—Not later than 160 days after the date of 
enactment of this Act, the Administrator shall, in addition to 
promulgating the regulations described in section 2334(b), establish 
a priority system for awarding grants to end users located in rural 
areas that are most in need of enhanced communications to carry 
out the purposes of this chapter. 
Employment. 
CHAPTER 2—RURAL BUSINESS DEVELOPMENT 
7 u s e 1932 note. 
SEC. 2336. PURPOSES. 
The purposes of this chapter are to— 
(1) provide funds to improve telecommunications service in 
rural areas; and 
(2) provide access to advanced telecommunications services 
and computer networks to improve job opportunities and the 
business environment in rural areas. 
SEC. 2337. LOANS FOR BUSINESS TELECOMMUNICATIONS PARTNERSHIPS. 
Section 310B of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1932) is amended by adding after the subsections added 
by section 2347(a) of this Act the following: 
"(i) LOANS FOR BUSINESS TELECOMMUNICATIONS PARTNERSHIPS.— 
"(1) IN GENERAL.—The Secretary may make loans under this 
subsection at low interest rates and at market rates to 1 or more 
businesses, local governments, or public agencies in rural areas 
to fund facilities in which the recipients of such loans share 
telecommunications terminal equipment, computers, computer 
software, and computer hardware. 
"(2) GENERAL REQUIREMENTS.— 
"(A) APPUCATION PROCESS.— 
"(i) SUBMISSION OF APPUCATION.—Any entity desiring 
a loan under this subsection shall submit an applica-
tion therefor to the Secretary. 
"(ii) CONTENTS OF APPUCATION.—Each application for 
a loan under this subsection shall include— 
"(I) a detailed explanation of the proposed rural 
telecommunications system, including the general 
telecommunications 
transmission 
services and 
facilities required, and a list of the specific equip-
ment that the applicant proposes to purchase or 
lease, to implement the system; 
"(II) a description of the manner in which the 
proposed project is to be funded; 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 4023 
"(III) a copy of a binding commitment entered 
into between the applicant and each entity which 
is legally permitted to provide, and from which the 
applicant is to obtain, the telecommunications 
services and facilities required for the project, 
which stipulates that if the applicant receives the 
loan requested in the application the entity will 
provide such telecommunications services and 
facilities in the area served by the entity within a 
reasonable time and at a charge which is in accord-
ance with State law; 
"(IV) a description of the manner in which the 
applicant intends to use the loan requested in the 
application; 
(V) a description of how the proposed project 
will be evaluated; and 
"(VI) such other information as the Secretary 
may reasonably require. 
'(B) C!ONSIDERATION OF APPUCATIONS.— 
"(i) REVIEW BY SECRETARY.—The Secretary shall— 
"(I) review each application submitted pursuant 
to subparagraph (A)(i); 
"(II) determine whether or not the application 
meets the requirements of subparagraph (AXii); 
"(III) approve each application which meets such 
requirements; 
"(IV) disapprove each application which fails to 
meet such requirements; and 
"(V) in the case of an approved application that 
proposes a project to be implemented in an eligible 
State (within the meaning of section 365(bX3)), 
transmit the approved application to the review 
panel of the eligible State, 
"(ii) REVIEW BY CERTAIN STATE REVIEW PANELS.— 
"(I) IN GENERAL.—The review panel shall exam-
ine each application transmitted to the review 
panel pursuant to clause (i)(V) to determine the 
technical and economic adequacy and feasibility of 
the project described in the application and the 
likelihood that the project will succeed. 
"(II) AUTHORITY TO OBTAIN INFORMATION FROM 
APPLICANTS.—Each entity which submits an ap-
plication for a loan under this subsection shedl 
provide the review panel of any eligible State in 
which the partnership intends to implement the 
project described in the application such informa-
tion as the review panel may reasonably request to 
assist in reviewing the application. 
"(Ill) AUTHORITY TO REQUEST APPUCANTS TO 
MODIFY PROJECTS.—The review panel may, before 
final consideration of an application of an entity 
for a loan under this subsection, request the entity 
to modify the project described in the application, 
"(iii) RANKING OF APPLICATIONS.— 
"(I) IN GENERAL.—The review panel shall rank, 
pursuant to a written policy £ind criteria, the ap-
plications that the review panel receives during 
104 STAT. 4024 
PUBLIC LAW 101-624—NOV. 28, 1990 
any fiscal year for a loan under this subsection, in 
an order which takes into account— 
"(aa) the results of the review conducted 
under clause (i); 
"Qib) the extent to which the projects de-
scribed in the applications would promote any 
area plan (as defined in section 365(bXl)) devel-
oped for the areas in which the projects are to 
be implemented; and 
"(cc) in the case of a project which would 
duplicate existing services, the reasons there-
for. 
"(11) GROUPING OF APPUCATIONS.—The review 
panel shall separate into 2 groups the applications 
for a loan under this subsection received by the 
review panel during a fiscal year. The 1st group 
shall consist of the applications received during the 
1st 6 months of the fiscal year. The 2nd group shall 
consist of the applications received during the 2nd 
6 months of the fiscal year. 
"(Ill) COMPETITION AMONG APPUCATIONS,—The 
review panel shall consider each application in a 
group to be competing only with the other applica-
tions in the group. 
"(IV) WRITTEN POUCY AND CRITERIA.— 
"(aa) IN GENERAL.—Subject to subdivision 
(bb), the review panel shall develop the written 
policy and criteria to be used to rank applica-
tions, in the same manner as the review panel 
develops the written policy and criteria used 
for purposes of section 366(b)(3). 
"(bb) PROHIBITION AGAINST DEVELOPMENT OR 
ACQUISITION OF TELECOMMUNICATIONS TRANS-
MISSION FACILITIES.—The policy and criteria 
developed under subdivision (aa) shall require 
that the project described in an application not 
include the development or acquisition of tele-
communications transmission facilities, 
"(iv) 
TRANSMITTAL OF RANKED APPUCATIONS.—The 
review panel shall transmit to the State coordinator 
appointed pursuant to section 365(b)(3XAXii) each list of 
applications ranked pursuant to clause (ii) of this 
subsection, in the same manner in which lists of 
applications ranked pursuant to section 366(b) are 
transmitted to the State coordinator pursuant to sec-
tion 366. The State coordinator shall transmit to the 
Secretary each such list received by the State coordina-
tor. 
"(C) PRIORITY.—The Secretary shall establish procedures 
to target loans under this subsection to the rural areas and 
applicants that demonstrate the need for such loans, taking 
into consideration— 
"(i) the relative needs of all applicants; 
"(ii) the needs of the affected rural aresis; 
"(iii) the financial ability of the applicants, without 
such loans, to use telecommunications for the business 
purposes for which such loans may be made; and 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 4025 
"(iv) the recommendations of the review panels for 
the eligible States (within the mesming of section 
365(bX3)) in which such areas are located. 
"(D) REPORT REQUIRED IF THE SECRETARY INTENDS TO FUND 
PROJECTS OTHER THAN AS RECOMMENDED BY REVIEW PANEL.— 
If the Secretary determines to provide loans under this 
subsection to projects in an eligible State (within the mean-
ing of section 365(bX3)) other than in the manner rec-
ommended by the review panel of the State, the 
Secretary— 
"(i) within 10 days after making such determination, 
shall submit to the review panel of the eligible State, 
the Committee on Agriculture of the House of Rep-
resentatives, and the Committee on Agriculture, Nutri-
tion, and Forestry of the Senate a report on the reasons 
for providing loans to projects other than in the 
manner so recommended; £ind 
"(ii) shall not provide such loans before the end of the 
7-day period beginning on the date the review panel 
and such committees have received such report. 
"(E) MONITORING OF USE OF LOANS.—The Secretary shall 
take such steps as may be necessary to ensure that loans 
provided under this subsection are used in accordance with 
the approved application therefor. 
"(3) RELATIONSHIP TO STATE LAW.—This subsection shall not be 
construed to affect in any manner the applicability of the 
Communications Act of 1934, the regulations and orders pre-
scribed thereunder, or any State or local law relating to the 
regulation or provision of telecommunications facilities or 
services. 
"(4) REGULATIONS.—Not later than 120 days after the date of 
the enactment of this subsection, the Secretary shall prescribe 
final regulations governing the loan program established under 
this subsection other than with respect to agency management 
and personnel, in accordance with the notice and comment 
rulemaking requirements described in section 553 of title 5, 
United States Code, notwithstanding subsection (aX2) of such 
section 553. 
"(5) DEFINITIONS.—As used in this subsection: 
"(A) REVIEW PANEL.—The term 'review panel' means, 
with respect to an eligible State (within the meaning of 
section 365(bX3), the rural economic development review 
panel of the State, as established pursuant to section 366. 
"(B) RURAL AREA.—The term 'rural area' has the mean-
ing given such term in section 306(aX7) for purposes of loans 
for essential community facilities under section 306(aXl). 
"(C) 
TELECOMMUNICATIONS TERMINAL EQUIPMENT.—The 
term 'telecommunications terminal equipment' means tele-
communications equipment (excluding telecommunications 
transmission facilities) that— 
"(i) interconnects with telecommunications trans-
mission facilities; and 
"(ii) modifies, converts, encodes, or otherwise pre-
pares signals to be transmitted through, or modifies, 
reconverts, or carries signals received from, the facili-
ties. 
104 STAT. 4026 
PUBLIC LAW 101-624—NOV. 28, 1990 
"(D) 
TELECOMMUNICATIONS TRANSMISSION FACILITIES.— 
The term 
'telecommunications transmission 
facilities' 
means facilities (other than telecommunications terminal 
equipment) that transmit, receive, or carry signals between 
the telecommunications terminal equipment at each end of 
a telecommunications circuit or path. 
"(6) TREATMENT OF LOAN PROGRAM AS DESIGNATED RURAL 
DEVELOPMENT PROGRAM.—For purposes of this title, the loan 
program established under this subsection shall, with respect to 
eligible States (within the meaning of section 365(bX3)), be 
treated as a designated rural development program (within the 
meaning of section 365(bX2)). 
"(7) LIMITATIONS ON AUTHORIZATION OF APPROPRIATIONS.— 
"(A) IN GENERAL.—For loans under this subsection, there 
are authorized to be appropriated to the Secretary 
$15,000,000 for each of fiscal years 1991, 1992, 1993, 1994, 
and 1995. 
"(B) AVAILABILITY.—Amounts appropriated pursuant to 
subparagraph (A) shall remain available until expended.". 
Subtitle £—Rural Business and Emergency 
Assistance 
SEC. 2341. LOCAL TECHNICAL ASSISTANCE GRANTS. 
Section 306(aXll) of the Consolidated Farm and Rural Develop-
ment Act (7 U.S.C. 1926(aXll)) is amended to read as follows: 
"(llXAXi) The Secretary may make grants, not to exceed 
$15,000,000 annually, to public bodies, private nonprofit community 
development corporations or entities, or such other agencies as the 
Secretary may select to enable such recipients— 
"(I) to identify and analyze business opportunities, including 
opportunities in export markets, that will use local rural eco-
nomic and human resources; 
"(II) to identify, train, and provide technical assistance to 
existing or prospective rural entrepreneurs and managers; 
"(III) to establish business support centers and otherwise 
assist in the creation of new rural businesses, the development 
of methods of financing local businesses, and enhancing the 
capacity of local individuals and entities to engage in sound 
economic activities; and 
"(IV) to conduct regional, community, and local economic 
development planning and coordination, and leadership devel-
opment, 
"(ii) In awarding such grants, the Secretary shall consider, among 
other criteria to be established liy the Secretary— 
"(I) the extent to which the applicant provides development 
services in its rural service area; and 
"(II) the capability of the applicant to carry out the purposes 
of this section, 
"(iii) The Secretary shall ensure, to the extent practicable, that 
assistance provided under this subsection is coordinated with and 
delivered in cooperation with similar services or assistance provided 
to rural residents by the Extension Service or other Federal agen-
cies. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 4027 
"(iv) For grants under this subparagraph, there are authorized to 
be appropriated to the Secretary $7,500,000 in each fiscal year.". 
SEC. 2342. RURAL EMERGENCY ASSISTANCE LOANS. 
Section 306(aXll) of the Consolidated Farm and Rural Develop-
ment Act (7 U.S.C. 1926(a)(ll)) is amended by inserting after the 
matter added by section 2341 of this Act the following new subpara-
graph: 
"(BXi) The Secretary shall establish and implement a program to 
make loans for the benefit of any town or city that— 
"(I) has a population of less than 20,000 individuals; and 
"(II) is financially unable to obtain funds £is quickly as needed 
to correct emergency conditions or situations needing urgent 
attention, 
"(ii) The Secretary shall promulgate regulations— 
Regulations. 
"(I) targeting the program established under this subpara-
graph toward needy communities in rural areas; 
"(II) defining the term 'emergency conditions or situations 
needing urgent attention'; and 
"(iii) The Secretary shall approve or reject applications for loans 
under this subparagraph within 30 days after receipt. 
"(iv) The Secretary shall not loan more than $50,000 to a single 
borrower under this subparagraph, and all loans under this subpara-
graph shall be for not more than 2 years. 
"(v) The Secretary may respond to the credit needs of rural towns 
or cities eligible to participate in the program authorized under this 
subparagraph by making loans that are eligible for refinancing after 
the expiration of the 2-year period described in clause (iv), and 
payments under such loans may be set at a level that is sufficiently 
low during such 2-year period so that the financially troubled town 
or city can participate in the program established under this 
subparagraph. The Secretary shall assist such borrowers in obtain-
ing financing through existing Farmers Home Administration pro-
grams so that such borrowers are able to pay the balance due on 
each loan at the end of such 2-year period. 
"(vi) To carry out the emergency lending program authorized by Appropriation 
the program established under this subparagraph, there are au- authorization, 
thorized to be appropriated $2,500,000 for fiscal year 1991, and 
$5,000,000 for fiscal year 1992 and for each subsequent fiscal year.". 
SEC. 2343. REA TECHNICAL ASSISTANCE UNIT. 
Title I of the Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.) 
is amended by adding at the end the following: 
"SEC. 17. TECHNICAL ASSISTANCE UNIT. 
7 USC 917. 
"(a) EsTABUSHMENT.—The Administrator shall establish a tech-
nical assistance unit to perform the duties described in subsection 
(b). 
"(b) DUTIES.—The technical assistance unit established under 
subsection (a) shall— 
"(1) provide advice and guidance to electric and telephone 
borrowers under this Act concerning the effective and prudent 
use by such borrowers of the investment authority under sec-
tion 312 to promote rural development; 
"(2) provide technical advice, troubleshooting, and guidance 
concerning the operation of programs or systems that receive 
assistance under this Act; 
39-194 O - 91 - 23 : QL 3 Part 5 
104 STAT. 4028 
PUBLIC LAW 101-624—NOV. 28, 1990 
"(3) establish and administer various pilot projects through 
electric and telephone borrowers that the Administrator deter-
mines are useful or necessary, and recommend specific rural 
development projects for rural areas; 
"(4) act as an information clearinghouse (using, to the extent 
practicable, the resources of the National Agricultural Library) 
and conduit to provide information to electric and telephone 
borrowers under this Act concerning useful and effective rural 
development efforts that such borrowers may wish to apply in 
their areas of operation and concerning State, regional, or local 
plans for long-term rural economic development; 
"(5) provide information to electric and telephone borrowers 
under this Act concerning the eligibility of such borrowers to 
apply for financial assistance, loans, or grants from other Fed-
eral agencies and non-Federal sources to enable such borrowers 
to expand their rursd development efforts; and 
"(6) promote local partnerships and other coordination be-
tween borrowers under this Act and community organizations. 
States, counties, or other entities, to improve rural develop-
ment. 
"(c) FUNDING.—Not less than 2 percent of the salaries and ex-
penses of the Rural Electrification Administration shall be made 
available during each fiscal year to the technical assistance unit 
established under this section.". 
SEC. 2344. DEFERMENT OF PAYMENT ON ECONOMIC DEVELOPMENT 
LOANS. 
Section 12 of the Rural Electrification Act of 1936 (7 U.S.C. 912) is 
amended— 
(1) by inserting "(a)" before "The Administrator"; and 
(2) by adding at the end the following new subsection: 
"(bXD Subject to limitations established in appropriations Acts, 
the Administrator shall permit any borrower to defer the pajonent 
of principal and interest on any insured or direct loan made under 
this Act under circumstances described in this subsection, notwith-
standing any limitation contained in subsection (a), except that such 
deferment shall not be permitted based on the determination of the 
Administrator of the financial hardship of the borrower. 
"(2)(A) In the case of deferments made to enable the borrower to 
provide financing to local businesses, the deferment shall be repaid 
in equal installments, without the accrual of interest, over the 60-
month period beginning on the date of the deferment, and the total 
amount of such pajnnents shall be equal to the amount of the 
payment deferred. 
"(B) In the case of deferments made to enable the borrower to 
provide community development assistance, technical assistance to 
businesses, and for other community, business, or economic develop-
ment projects not included under subparagraph (A), the deferment 
shall be repaid in equal installments, without the accrual of in-
terest, over the 120-month period beginning on the date of the 
deferment, and the total amount of such payments shall be equal to 
the amount of the payment deferred. 
"(3XA) A borrower may defer its debt service pajnnents only in an 
amount equal to an investment made by such borrower as described 
in paragraph (2). 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 4029 
"(B) The amount of the deferment shall not exceed 50 percent of 
the total cost of a community or economic development project for 
which a deferment is provided under this subsection. 
"(C) The total amount of deferments under this subsection during 
each of the fiscal years 1990 through 1993 shall not exceed 3 percent 
of the total payments due during such fiscal year from all borrowers 
on direct and insured loans made under this Act and shall not 
exceed 5 percent of such total pajonents due in each subsequent 
fiscal year. 
"(D) At the time of a deferment, the borrower shall make a 
payment to a cushion of credit account established and maintained 
pursuant to section 313 in an amount equal to the amount of the 
pajrment deferred. The balance of such account shall not be reduced 
by the borrower below the level of the unpaid balance of the 
payment deferred. Subject to limitations established in annual 
appropriations Acts, such cushion of credit amounts and any other 
cushion of credit and advance payments of any borrower shall be 
included in the interest differential calculation under section 
313(bX2XA). 
"(4) The Administrator shall undertake all reasonable efforts to 
permit the full amount of deferments authorized by this subsection 
during each fiscal year.". 
SEC. 2345. RURAL ECONOMIC DEVELOPMENT. 
The Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.) is 
amended by adding at the end the following new title: 
"TITLE V—RURAL ECONOMIC 
DEVELOPMENT 
"SEC. SOL ADDITIONAL POWERS AND DUTIES OF REA ADMINISTRATOR. 
^ USC 950aa. 
"The Administrator shall— 
"(1) provide advice and guidance to electric borrowers under 
this Act concerning the effective and prudent use by such 
borrowers of the investment authority under section 312 to 
promote rural development; 
"(2) provide technical advice, troubleshooting, and guidance 
concerning the operation of programs or systems that receive 
assistance under this Act; 
"(3) establish and administer various pilot projects through 
electric and telephone borrowers that the Administrator deter-
mines are useful or necessary, and recommend specific rural 
development projects for rural areas; 
"(4) act as an information clearinghouse and conduit to pro-
vide information to electric and telephone borrowers under this 
Act concerning useful and effective rural development efforts 
that such borrowers may wish to apply in their areas of oper-
ation and concerning State, regional, or local plans for long-
term rural economic development; 
"(5) provide information to electric and telephone borrowers 
under this Act concerning the eligibility of such borrowers to 
apply for financial assistance, loans, or grants from other Fed-
eral agencies and non-Federal sources to enable such borrowers 
to expand their rural development efforts; 
104 STAT. 4030 
PUBLIC LAW 101-624—NOV. 28, 1990 
Grant programs. 
Loan programs. 
Tele-
communications. 
Nonprofit 
organizations. 
7 u s e 950aa-l. 
"(6) promote local partnerships and other coordination be-
tween borrowers under this Act and community orggmizations, 
States, counties, or other entities, to improve rural develop-
ment; 
"(7) review the advice and recommendations of the Rural 
Educational Opportunities Board as established under section 
601(f); and 
"(8) administer a Rursil Business Incubator Fund (as estab-
lished under section 502) that shall provide technical assistance, 
advice, loans, or capital to business incubator programs or for 
the creation or operation of small business incubators in rural 
areas. 
•SEC. 502. RURAL BUSINESS INCUBATOR FUND. 
"(a) ESTABLISHMENT AND USE.— 
"(1) ESTABLISHMENT.—There is established in the Treasury of 
the United States a revolving fund to be known as the Rural 
Business Incubator Fund (in this title referred to as the 'Incuba-
tor Fund') to be administered by the Administrator. 
"(2) USE.—The Incubator Fund shall be used to make grants 
and reduced interest loans to electric and telephone borrowers 
under this Act or to other nonprofit entities that meet the 
requirements of this section, to promote business incubator 
programs or for the creation or operation of business incubators 
in rural areas as defined in this Act, and the interest rate on 
such loans shall not exceed 5 percent. 
"(3) BUSINESS INCUBATOR.—Any business incubator that re-
ceives assistance under this title shall be a facility in which 
small businesses can share premises, support staff, computers, 
software, hardware, telecommunications terminal equipment, 
machinery, janitorial services, utilities, or other overhead ex-
penses, and where such businesses can receive technical assist-
ance, financial advice, business planning services, or other sup-
port. Business incubator programs that provide assistance of the 
type described in this paragraph shall be eligible for assistance 
under this title even if such programs do not involve the 
sharing of premises. 
"0>) APPUCATION FOR ASSISTANCE.— 
"(1) ELIGIBIUTY TO SUBMIT.—Borrowers under this Act that 
operate business incubators or that desire to operate such in-
cubators or business incubator programs, and that meet the 
requirements established by the Administrator for obtaining 
grants or reduced interest loans under this section, may submit 
applications for such grants or loans at such time, in such form, 
and containing such information as the Administrator shall 
require. Nonprofit entities that are not borrowers under title III 
shall be considered eligible borrowers for the purpose of this 
section if such entities are located in a State in which not more 
than one electric borrower is headquartered in such State. 
"(2) REQUIREMENTS.—Applications submitted under para-
graph (1) shall, at a minimum— 
"(A) contain an assurance that any incubator established 
or operated pursuant to this section will be operated on a 
not-for-profit basis; and 
"(B) contain an assurance that the policy of such incuba-
tor is to encourage and assist businesses in graduating from 
the incubator and becoming viable business entities in the 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 4031 
community and to inform participating businesses of this 
policy. 
"(3) REVIEW.—In reviewing applications for assistance, the 
Administrator shall consider— 
"(A) how effectively the incubator project will assist in 
the formation, growth, or improved efficiency of small 
businesses that will help diversify and develop the local 
economy; and 
"(B) the amount of local support likely to exist for the 
incubator and the businesses to be assisted by such incuba-
tor, taking into account local contributions of business, 
financial, technical, technological, or managerial expertise, 
and contributions of equipment or materials, local financial 
assistance, and other factors as determined appropriate by 
the Administrator. 
"(c) FUNDING OF LOCAL INCUBATORS.— 
"(1) BY BORROWER ESTABLISHING INCUBATOR.— 
"(A) IN GENERAL.—A borrower that establishes or assists 
a business incubator under this section shall purchase Cap-
ital Term Certificates issued by the Incubator Fund in 
amounts equal to 10 percent of the amount of the grant, or 
5 percent of the amount of the reduced interest loan, 
provided by the Administrator under this section. 
"(B) REDEMPTION OF CERTIFICATES.—Each calendar year 
for the 10-year period beginning on the date that a grant or 
reduced interest loan is provided under this section, the 
Administrator shall redeem an amount equal to 10 percent 
of the Capital Term Certificates purchased by the borrower 
under subparagraph (A), without any payment of interest. 
"(2) BY THE SECRETARY OF THE TREASURY.—The Secretary of Appropriation 
the Treasury shall, subject to the limitations contained in authorization. 
annual appropriations Acts, provide funds for the capitalization 
of the Incubator Fund, and there are authorized to be appro-
priated for such capitalization not to exceed $10,000,000 an-
nually until the total of such capitalization equals $60,000,000. 
Such amounts shall remain available until expended by the 
Incubator Fund for the purposes of this section. 
"(d) REPAYMENTS TO INCUBATION FUND.—All payments made on 
loans under this section, and all amounts provided under subsection 
(c), shall be placed in the Incubator Fund established by subsection 
(a) and shall be available to carry out the purposes of this section. 
"(e) FULL USE.—The Administrator shall undertake all reasonable 
efforts to make full use, during each fiscal year, of any funds 
contained in the Incubator Fund established under subsection (a), 
consistent with the requirement that the Incubator Fund redeem 
Capital Term C!ertificates as provided by subsection (c). During each 
fiscal year, 10 percent of the amount contained in the Incubator 
Fund shall be made available to nonprofit entities described in 
subsection (b) that are not borrowers under title III, except that if 
qualified applications from such entities are not received in an 
amount or at such times sufficient to use such 10 percent amount 
during any fiscal year, the Administrator shall make the remainder 
of such amount available to other eligible borrowers during such 
fiscal year.". 
104 STAT. 4032 
PUBLIC LAW 101-624—NOV. 28, 1990 
SEC. 2346. EXTENSION SERVICE. 
Section 502 of the Rural Development Act of 1972 (7 U.S.C. 2662) 
is amended by adding at the end the following new subsection: 
"(g) RURAL ECONOMIC AND BUSINESS DEVELOPMENT.— 
"(1) IN GENERAL.—The Secretary shall establish an Extension 
Service rural economic and business development progi-am to 
enable States or counties to employ specialists as Cooperative 
Extension Service staff of the State or county to assist individ-
uals in creating new businesses, including cooperatives, of to 
Eissist existing businesses, and to assist such businesses regard-
ing advanced telecommunications, computer technologies, tech-
nical or management assistance, business and financial plan-
ning, and other related matters, and to assist community lead-
ers in community economic analysis and strategic planning. 
"(2) FUNCTION OF SPECIAUSTS.—Specialists employed under 
paragraph (1) shall provide economic development information 
and assistance concerning business creation, business planning 
and advice, advanced telecommunications, business manage-
ment, computer operations, and other technical assistance to 
community leaders and private sector entrepreneurs and 
cooperatives operating in the State or county that employs such 
specialists. 
"(3) PROCEDURES AND UMITATIONS.—The Secretary shall 
establish policies, procedures, and limitations that shall apply 
to States and counties that desire to participate in the program 
established under this subsection. States and counties shall 
determine the t3rpes of rural economic and business develop-
ment specialists that are needed by such States and counties. In 
States with land-grant colleges and universities eligible to 
receive funds under the Act of July 2,1862 (7 U.S.C. 301 et seq.), 
and the Act of August 30, 1890 (7 U.S.C. 321 et seq.), including 
Tuskegee University, such eligible institutions shall determine 
the t5rpes of rural economic and business development special-
ists needed. 
Grant programs. 
"(4) PAYMENT OF SALARY.—The Secretary shall make grants to 
States and counties that participate in the program established 
under this section in an amount equal to 60 percent of the total 
amount of the salary paid to any specialists employed under 
such program, and the State or county shall provide funds for 
the remaining 40 percent of such salary. Land-grant colleges 
and universities eligible to receive funds under the Act of 
August 30, 1890 (7 U.S.C. 321 et seq.), including Tuskegee 
University, shall be exempt from the 40 percent salary match-
ing requirement. 
"(5) LIMITATIONS ON AUTHORIZATION OF APPROPRIATIONS.—To 
carry out this section, there are authorized to be appropriated 
$5,000,000 in fiscal year 1991, $10,000,000 in fiscal year 1992, 
$15,000,000 in fiscal year 1993, and $20,000,000 in fiscal year 
1994 and each subsequent fiscal year. Amounts appropriated 
under this section shall remain available until expended. 
"(6) COORDINATION.—The Secretary shall ensure that the 
activities of the Extension Service rural economic and business 
development program established under this subsection are 
coordinated with the Small Business Administration to ensure 
that there is no duplication of activities in any local area, 
county or region. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 4033 
'Qo) RURAL DEVELOPMENT EXTENSION WORK.— 
"(1) NATIONAL PROGRAM.—The Secretary of Agriculture shall 
establish a national program, to be administered by the Exten-
sion Service, to provide rural citizens with training in, technical 
and 
management 
assistance 
regarding, 
and 
educational 
opportunities to enhance their knowledge of— 
"(A) beginning businesses through entrepreneurship; 
"(B) the procedures necessary to establish new businesses 
in rural areas; 
"(C) self-emplojmient opportunities in rural areas; 
"(D) the uses of modern telecommunications and com-
puter technologies; 
"(E) business and financial planning; and 
"(F) such other training, assistance, and educationsd 
opportunities as the Secretary determines are necessary to 
carry out the program established under this subsection. 
"(2) LEADERSHIP ABIUTIES.—The program established under 
this subsection shall provide assistance designed to increase the 
leadership abilities of residents in rural areas. Such assistance 
shall include— 
"(A) information relevant to the development of commu-
nity goals; 
'(B) instruction regarding the methods by which State or 
Federal funding for rural development projects might be 
obtained; 
"(C) instruction regarding the successful writing of ap-
plications for loan or grant funds from government and 
private sources; 
"(D) an updated listing of State, Federal, and other eco-
nomic development programs available to rural areas; and 
"(E) such other training, information, and assistance as 
the Secretary determines necessary to increase the leader-
ship abilities of residents in rural areas. 
"(3) CATALOG OF PROGRAMS.—The National Rural Information 
Center Clearinghouse of the National Agricultural Library, in 
cooperation with the Extension Service in each State, should 
develop, maintain, and provide to each community, and make 
accessible to any other interested party, a catalog of available 
State, Federal, or private programs that provide leadership 
training or other information or services similar or complemen-
tary to the training or services required by this subsection. Such 
catalog should include, at a minimum, the following entities 
within the State that provide such training or services: 
"(A) Any rural electric cooperative. 
"(B) Any nonprofit company development corporation. 
"(C) Any economic development district that serves a 
rural community. 
"(D) Any nonprofit subsidiary of any private entity. 
"(E) Any nonprofit organization whose principal purpose 
is to promote economic development in rural areas. 
"(F) Any investor or publicly owned electric utility. 
"(G) Any small business development center or small 
business investment company. 
"(H) Any regional development organization. 
"(I) Any vocational or technical school. 
"(J) Any Federal, State, or local government agency or 
department. 
Occupational 
training. 
Technical 
assistance. 
104 STAT. 4034 
PUBLIC LAW 101-624—NOV. 28, 1990 
"(K) Any other entity that the Secretary deems appro-
priate. 
The extension service in each State should include in the cata-
log information on the specific training or services provided by 
each entity in the catalog. 
"(4) EMPLOYEE TRAINING.—The Secretary shall provide train-
ing for appropriate State extension service employees, assigned 
to programs other than rural development, to ensure that such 
employees understand the availability of rural development 
programs in their respective States and the availability of 
Extension Service staff qualified to provide to rural citizens and 
to State extension staff training and materials for technical, 
management, and educational assistance. 
"(5) COORDINATION OF ASSISTANCE.—The Secretary shall 
ensure, to the extent practicable, that assistance provided under 
this subsection is coordinated with and delivered in cooperation 
with similar services or assistance provided by other Federal 
agencies or programs for rural residents.". 
SEC. 2347. RURAL TECHNOLOGY GRANTS. 
(a) IN GENERAL.—Section 310B of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1932) is amended by striking 
subsection (f) and inserting the following: 
Nonprofit 
"(f)(1) The Secretary shall make grants under this subsection to 
organizations. 
nonprofit institutions for the purpose of enabling such institutions 
to establish and operate centers for rural technology or cooperative 
development. 
"(2) Any nonprofit institution seeking a grant under paragraph (1) 
shall submit to the Secretary an application containing a plan for 
the establishment and operation by such institution of a center for 
rural technology or cooperative development. The Secretary may 
approve such application if such plan contains the following: 
"(A) A provision that substantiates that such center will 
effectively serve rural areas in the United States. 
"(B) A provision that the primary objective of such center will 
be to improve the economic condition of rural areas by promot-
ing the development (through technological innovation, co-
operative development, and adaptation of existing technology) 
and commercialization of— 
"(i) new services and products that can be produced or 
provided in rural areas; 
"(ii) new processes that can be utilized in the production 
of products in rural areas; and 
"(iii) new enterprises that can add value to on-farm 
production through processing or marketing. 
"(C) A description of the activities that such center will carry 
out to accomplish such objective. Such activities may include 
the following: 
"(i) Programs for technology research, investigations, and 
basic feasibility studies in any field or discipline for the 
purpose of generating principles, facts, technical knowl-
edge, new technology, or other information that may be 
useful to rural industries, cooperatives, agribusinesses, and 
other persons or entities in rural areas served by such 
centers in the development and commercialization of new 
products, processes, or services. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 4035 
"(ii) Programs for the collection, interpretation, and 
dissemination of principles, facts, technical knowledge, new 
technology, or other information that may be useful to 
rural industries, cooperatives, agribusinesses, and other 
persons in rural areas served by the center in the develop-
ment and commercialization of new products, processes, or 
services. 
"(iii) Programs providing training and instruction for 
individuals residing in rural aresis served by the center 
with respect to the development (through technological 
innovation, cooperative development, and adaptation of 
existing technology) and commercialization of new prod-
ucts, processes, or services. 
"(iv) Programs providing loans and grants to individuals, 
small businesses, and cooperatives in rural areas served by 
the center for purposes of generating, evaluating, develop-
ing, and commercializing new products, processes, or serv-
ices. 
"(v) Programs providing technical assistance and ad-
visory services to individuals, small businesses, coopera-
tives, and industries in rural areas served by the center for 
purposes of developing and commercializing new products, 
processes, or services. 
"(vi) Programs providing research and support to individ-
uals, small businesses, cooperatives, and industries in rural 
areas served by the center for purposes of developing new 
agricultural enterprises to add value to on-farm production 
through processing or marketing. 
"(D) A description of the contributions that such activities are 
likely to make to the improvement of the economic conditions of 
the rural areas for which such center will provide services. 
"(E) Provisions that such center, in carrying out such activi-
ties, will seek, where appropriate, the advice, participation, 
expertise, and assistance of representatives of business, indus-
try, educational institutions, the Federal Government, and 
State and local governments. 
"(F) Provisions that such center— 
"(i) will consult with any college or university administer-
ing any program under title V of the Rural Development 
Act of 1972 in the State in which such center is located; and 
"(ii) will cooperate with such college or university in the 
coordination of such activities and such program. 
"(G) Provisions that such center will take all practicable steps 
to develop continuing sources of financial support for such 
center, particularly from sources in the private sector. 
"(H) Provisions for— 
"(i) monitoring and evaluating such activities by the 
institution operating such center; and 
"(ii) accounting for money received by such institution 
under this section. 
"(I) Provisions that such center will provide for the optimal 
application of such technology and cooperative development in 
rural areas, especially those areas adversely affected by adverse 
agricultural economic conditions, through the establishment of 
demonstration projects and subcenters for— 
104 STAT. 4036 
PUBLIC LAW 101-624—NOV. 28, 1990 
"(i) rural technology development where the technology 
can be implemented by communities, community colleges, 
businesses, cooperatives, and other institutions; or 
"(ii) cooperative development where such development 
can be implemented by cooperatives to improve local eco-
nomic conditions. 
"(3) Grants made under paragraph (1) shall be made on a competi-
tive basis. In making grants under paragraph (1), the Secretary shall 
give preference to grant applications providing for the establish-
ment of centers for rural technology or cooperative development 
that— 
"(A) can demonstrate the capability to transfer for practical 
application in rural areas the technology generated at such 
centers and the ability to commercialize products, processes^ 
services, and enterprises in such rural areas; 
"(B) will effectively serve in rural areas that have— 
"(i) few rural industries and agribusinesses; 
"(ii) high levels of unemplojonent or underemplojmtient; 
"(iii) high rates of outmigration of people, businesses, and 
industries; and 
"(iv) low levels of per capita income; and 
"(C) will contribute the most to the improvement of economic 
conditions of rural areeis. 
"(4) As used in this subsection: 
"(A) The term 'nonprofit institution' means any organization 
or institution, including an accredited institution of higher 
education, no part of the net earnings of which inures, or may 
lawfully inure, to the benefit of any private shareholder or 
individual. 
"(B) The term 'United States' means the several States, the 
District of Columbia, the Commonwealth of Puerto Rico, the 
Virgin Islands, Guam, American Samoa, and the other terri-
tories and possessions of the United States. 
"(g) In carrying out subsection (f), the Secretary may provide 
technical assistance to alleviate or prevent conditions of excessive 
unemployment or underemployment of persons residing in economi-
cally distressed rural areas that the Secretary determines have a 
substantial need for such assistance. Such £issist£mce shall include 
planning and feasibility studies, management and operational 
assistance, and studies evaluating the needs for development poten-
tial of projects that increase employment and improve economic 
growth in such areas. 
"(h) The Secretary may make grants to defray not to exceed 75 
percent of the administrative costs incurred by organizations and 
public bodies to carry out projects for which grants or loans are 
made under subsection (f). For purposes of determining the non-
Federal share of such costs, the Secretary shall consider contribu-
tions in cash and in kind, fairly evaluated, including but not limited 
to premises, equipment, and services.". 
(b) LIMITATION ON AUTHORIZATION OF APPROPRIATIONS.—To carry 
out subsections (f) and (h) of section 310B of the Consolidated Farm 
and Rural Development Act, there are authorized to be appropriated 
to the Secretary not to exceed $50,000,000 for each of the fiscal years 
1992,1993, and 1994. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 4037 
SEC. 2348. DEMONSTRATION PROJECTS. 
Grant programs. 
The Secretary shall establish a program of competitive grants to 
rural areas to serve as demonstration areas for rurgJ economic 
development £ind £is models of such development for other areas. In 
awarding such grants, the Secretary shall favorably consider a 
request for funds from a rural area that the Secretary determines— 
(1) demonstrates the ability to supplement the grant funds 
provided under this section with other funds from State, local, 
or private sources; 
(2) demonstrates the ability to use the grant funds to increase 
emplojonent in the area; and 
(3) can successfully serve as a demonstration area to share the 
results of the project to the benefit of other rural areas in the 
region. 
SEC. 2349. RURAL DEVELOPMENT RESEARCH ASSISTANCE. 
Section 502 of the Rural Development Act of 1972 (7 U.S.C. 2662) 
is amended by adding after the subsection added by section 2346 oif 
this Act the following: 
"(h) RESEARCH GRANTS.— 
"(1) IN GENERAL.—In addition to the programs already con-
ducted under this section, the Secretary shall also establish and 
carry out a program to award competitive research grants to 
land-grant colleges and universities, research foundations, and 
centers established by land-grant universities. State agricul-
tural experiment stations, and to all colleges and universities 
having demonstrable capability in rural development research, 
as determined by the Secretary, to carry out research to— 
"(A) determine factors which impact upon rural economic 
development whether favorably or unfavorably; 
"(B) estimate the relative impacts of these factors; 
"(C) develop methodologies to investigate policy options 
for rural economic development; 
"(D) evaluate the impact of Federal and State economic 
development policies and programs designed to improve 
economic competitiveness and diversification; 
"(E) support strategic planning for economic investments; 
"(F) improve human resources; and 
"(G) improve the data base for rural development 
decisionmaking in rural areas. 
"(2) LIMITATION ON AUTHORIZATION OF APPROPRIATIONS.—To 
carry out this subsection, there are authorized to be appro-
priated to the Secretary not to exceed $3,000,000 in each fiscal 
year. Amounts appropriated under this subsection shall remain 
available until expended.". 
SEC. 2350. ASSISTANT ADMINISTRATOR FOR ECONOMIC DEVELOPMENT. 7 USC 911a. 
The Rural Electrification Act of 1936 is amended by inserting 
after section 11 (7 U.S.C. 911) the following new section: 
"SEC. 11 
A. ASSISTANT ADMINISTRATOR FOR ECONOMIC DEVELOPMENT. 
"(a) APPOINTMENT.—The Administrator shall appoint an Assistant 
Administrator for Economic Development (in this Act referred to as 
the 'Assistant Administrator') to carry out the programs of the 
Rural Electrification Administration concerning the involvement of 
rural electric and telephone systems in community and economic 
development. 
104 STAT. 4038 
PUBLIC LAW 101-624—NOV. 28, 1990 
"(b) 
APPOINTMENT 
FACTORS.—In 
appointing 
the 
Assistant 
Administrator, the Administrator shall consider the degree to which 
candidates possess— 
"(1) knowledge of and experience in community and economic 
development programs and strategies; 
"(2) the ability to develop £ind manage the specific programs 
and responsibilities of this office, as described in this Act; 
"(3) the ability to work effectively with officials of Federal, 
State, and local governments, private, and other officials of 
development programs, as well as with borrowers of the Rural 
Electrification Administration and their associations; and 
"(4) other factors determined by the Administrator to be 
import£int in the successful execution of the responsibilities of 
the office of Assistant Administrator. 
"(c) 
RESPONSIBILITIES 
AND 
COMPENSATION.—The 
Assistant 
Administrator shall be— 
"(1) responsible, unless otherwise provided by law, for the 
administration of the programs of the Rural Electrification 
Administration not directly related to the providing of electric 
or telephone service; and 
"(2) compensated at a salary level that is not less than that of 
the Assistant Administrator for Electric and the Assistant 
Administrator for Telephone of the Rural 
Electrification 
Administration. 
"(d) FUNDING.—The Assistant Administrator shall use not less 
than 10 percent nor more than 20 percent of the salaries and 
expenses provided to the Administration during any fiscal year to 
carry out the responsibilities described in subsection (c)(1), and such 
amounts shall remain available until expended. 
"(e) TECHNICAL ASSISTANCE UNIT.—The Administrator shall estab-
lish a technical assistance unit to provide advice and guidance to 
borrowers concerning community and economic development activi-
ties permitted under this Act. From the amounts made available to 
the Assistant Administrator under subsection (d), not less than 1 
percent of the salaries and expenses of the Rural Electrification 
Administration shall be made available to such technical assistance 
unit established under this subsection.". 
Rural Tele- 
Subtltlc F—Rural Elcctrificatioii Provisions 
communications 
Improvements 
Act of 1990. 
SEC. 2351. SHORT TITLE; AMENDMENT OF RURAL ELECTRIFICATION ACT 
OF 1936. 
7 use 901 note. 
(a) SHORT TITLE.—This subtitle may be cited as the "Rural Tele-
communications Improvements Act of 1990". 
Ot)) AMENDMENT OF RURAL ELECTRIFICATION ACT OF 1936,—Except 
as otherwise expressly provided, wherever in this subtitle an amend-
ment is expressed in terms of an amendment to a section or other 
provision, the reference shall be considered to be made to a section 
or other provision of the Rural Electrification Act of 1936. 
7 u s e 901 note. 
SEC. 2352. FINDINGS; STATEMENT OF POLICY. 
(a) FINDINGS.—The Congress finds that— 
(1) making modern telecommunications technology and serv-
ices available in rural areas in the United States promotes 
economic development and improves the quality of life in rural 
areas; and 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 4039 
(2) the efficient operation of the Rural Telephone Bank and 
the Rural Electrification Administration telephone loan pro-
grams is essential to the continued development of the tele-
communications infrastructure in rural areas in the United 
States, 
(b) STATEMENT OF POUCY.—It is the policy of the Congress that the 
Rural Telephone Bank and the Rural Electrification Administration 
make loans that facilitate the development and enhancement of the 
rural telecommunications infrastructure in order to make modem 
telecommunications technology and services available at reasonable 
rates to the greatest practicable number of people in rural areas in 
the United States. 
CHAPTER 1—AMENDMENT TO TITLE I OF THE RURAL 
ELECTRIFICATION ACT OF 1936 
SEC. 2353. GENERAL PROHIBITIONS. 
Title I (7 U.S.C. 901 et seq.) is amended by adding after the section 
added by section 2343 of this Act the following new section: 
"SEC. 18. GENERAL PROHIBITIONS. 
7 USC 918. 
"The Administrator and the Grovernor of the telephone bank shall 
not deny or reduce any loan or loan advance under this Act based on 
a borrower's level of general funds.". 
CHAPTER 2—AMENDMENTS RELATING TO TITLE II OF THE 
RURAL ELECTRIFICATION ACT OF 1936 
SEC. 2354. UPDATED DEFINITION OF TELEPHONE SERVICE. 
Section 203(a) (7 U.S.C. 924(a)) is amended— 
(1) by inserting "or reception" after "transmission"; 
(2) by inserting "data," after "voice,"; and 
(3) by striking "through the use of electricity between the 
transmitting and receiving apparatus" and inserting "by wire, 
fiber, radio, light, or other visual or electromagnetic means". 
SEC. 2355. LOAN FEASIBILITY. 
Title II (7 U.S.C. 922 et seq.) is amended by adding at the end the 
following new section: 
"SEC. 204. LOAN FEASIBILITY. 
7 USC 925. 
"The Administrator and the Grovemor of the telephone bank may 
not, as a condition of making a telephone loan to an applicant 
therefor, require the applicant to— 
"(1) increase the rates charged to the applicant's customers or 
subscribers; or 
"(2) increase the applicant's ratio of— 
"(A) net income or margins before interest; to 
"(B) the interest requirements on all of the applicant's 
outstanding and proposed loans.". 
SEC. 2356. ENCOURAGEMENT OF INVESTMENT BY TELEPHONE BORROW-
ERS IN RURAL DEVELOPMENT PROJECTS. 
Title II (7 U.S.C. 922 et seq.) is amended by adding after the 
section added by section 2355 of this Act the following new section: 
104 STAT. 4040 
PUBLIC LAW 101-624—NOV. 28, 1990 
7 u s e 926 
"SEC. 205. CERTAIN RURAL DEVELOPMENT INVESTMENTS BY QUALIFIED 
TELEPHONE BORROWERS NOT TREATED AS DIVIDENDS OR 
DISTRIBUTIONS. 
"(a) IN GENERAL.—The Administrator and the Governor of the 
telephone bank shall not— 
"(1) treat any amount invested by any qualified telephone 
borrower for any purpose described in section 607(c)(2) of the 
Rural Development Act of 1972 (including any investment in, or 
extension of credit, guarantee, or advance made to, an affiliated 
company of the borrower, that is used by such company for such 
a purpose) as a dividend or distribution of capital to the extent 
that, immediately after such investment, the aggregate of such 
investments does not exceed V
s of the net worth of the borrower; 
or 
"(2) require a qualified telephone borrower to obtain the 
approval of the Administrator or the Governor of the telephone 
bank in order to make an investment described in paragraph 
(1). 
"(b) QUALIFIED TELEPHONE BORROWER DEFINED.—As used in 
subsection (a), the term 'qualified telephone borrower' means a 
person— 
"(1) to whom a telephone loan has been made or guaranteed 
under this Act; and 
"(2) whose net worth is at least 20 percent of the total assets 
of such person.". 
SEC. 2357. IMPROVEMENTS IN TELEPHONE PROGRAM. 
Title II (7 U.S.C. 922 et seq.) is amended by adding after the 
sections added by sections 2355 and 2356 of this Act the following 
new section: 
7 u s e 927. 
"SEC. 206. GENERAL DUTIES AND PROHIBITIONS. 
"(a) DUTIES.—The Administrator and the Governor of the tele-
phone bank shall— 
Federal 
"(1) notwithstanding section 553(a)(2) of title 5, United States 
Register, 
C!ode, cause to be published in the Federal Register, in accord-
pu ica ion. 
^j^^g Yfith subsections (b) through (e) of section 553 of such title, 
all rules, regulations, bulletins, and other written policy stand-
ards governing the operations of the telephone loan and loan 
guarantee programs administered under this Act other than 
those relating to agency management and personnel; 
"(2) in evaluating the feasibility of a telephone loan to be 
made to a borrower for telephone services, use— 
"(A) with respect to items for which the regulatory 
authority with jurisdiction over the provision of such serv-
ices has approved the depreciation rates used by the bor-
rower, such approved rates; and 
"(B) with respect to other items, the average of the 
depreciation rates used by borrowers of telephone loans 
made under this Act; 
"(3) annually determine and publish the average described in 
pargigraph (2XB); and 
"(4) make loans for all purposes for which telephone loans are 
authorized under section 201 or 408, to the extent of qualifying 
applications therefor. 
"(b) PROHIBITIONS.—The Administrator and the Governor of the 
telephone bank shall not— 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 4041 
"(1) rescind an insured telephone loan, or a Rural Telephone 
Bsink loan, made under this Act without the consent of the 
borrower, unless all of the purposes for which telephone loans 
have been made to the borrower under this Act have been 
accomplished with funds provided under this Act; 
"(2) regulate the order or sequence of advances of funds under 
telephone loans made under this Act to any borrower who has 
received any combination of telephone loans from the Rural 
Electrification Administration, the Rural Telephone Bank, or 
the Federal Financing Bank; or 
"(3) deny a loan or advance to, or take any other adverse 
action against, an applicant for, or a borrower of, a telephone 
loan under this Act for any reason that is not based on a rule, 
regulation, bulletin, or other written policy standard that has 
not been published pursuant to section 553 of title 5, United 
States Code.". 
SEC. 2358. PROMPT PROCESSING OF TELEPHONE LOANS. 
Title II (7 U.S.C. 922 et seq.) is amended by adding after the 
sections added by sections 2355, 2356, and 2357 of this Act the 
following new section: 
"SEC. 207. PROMPT PROCESSING OF TELEPHONE LOANS. 
"Within ten days after the end of the second and fourth calendar 
quarters of each year, the Administrator shall submit to the 
Committee on Agriculture and the Committee on Appropriations of 
the House of Representatives, and to the Committee on Agriculture, 
Nutrition, and Forestry and the Committee on Appropriations of the 
Senate, a report— 
"(1) identifying each completed application for a telephone 
loan under section 305, a guarantee of a telephone loan under 
section 306, or a loan under section 408, that has not been 
finally acted upon within ninety days after the date the com-
pleted application is submitted; and 
"(2) stating the reasons for the failure to finally act upon the 
completed applications within such ninety-day period.". 
CHAPTER 3—AMENDMENTS RELATING TO TITLE III OF 
THE RURAL ELECTRIFICATION ACT OF 1936 
Reports. 
7 u s e 928. 
SEC. 2359. CREATION OF SEPARATE ELECTRIC AND TELEPHONE AC-
COUNTS 
WITHIN 
RURAL 
ELECTRIC 
AND 
TELEPHONE 
REVOLVING FUND. 
Section 302 (7 U.S.C. 932) is amended by adding at the end the 
following new subsection: 
"(cXl) The Administrator shall maintain two separate accounts 
within the fund, which shall be known as the electric account and 
the telephone account, respectively. 
"(2XA) The Administrator shall account for the assets, liabilities, 
income, expenses, and equity of the fund attributable to electrifica-
tion loan operations in the electric account. 
"(B) The Administrator shall account for the assets, liabilities, 
income, expenses, and equity of the fund attributable to telephone 
loan operations in the telephone account. 
"(3)(A) The assets accounted for in the electric account shall be 
available solely for electrification loan operations under this Act. 
Loan programs. 
104 STAT. 4042 
PUBLIC LAW 101-624—NOV. 28, 1990 
"(B) The assets accounted for in the telephone account shall be 
available solely for telephone loan operations under this Act (other 
than under title IV).". 
SEC. 2360. BORROWERS TO DETERMINE AMORTIZATION PERIOD FOR IN-
SURED TELEPHONE LOANS. 
7 use 939. 
Section 309 (7 U.S.C. 940) is amended— 
(1) by striking "SEC. 309. LOAN TERMS AND CONDITIONS.— 
Loans made from or" and inserting the following: 
"SEC. 309. LOAN TERMS AND CONDITIONS. 
"(a) IN GENERAL.—Loans made from or"; and 
(2) by adding at the end the following new subsection: 
"(b) TELEPHONE LOANS UNDER THIS TITLE.—The term of any tele-
phone loan made under thi^ title shall be determined by the bor-
rower at the time the loan application is submitted.". 
SEC. 2361. TIER REQUIREMENT FOR INSURED TELEPHONE LOANS. 
Section 305 (7 U.S.C. 935) is amended by adding at the end the 
following new subsection: 
"(d) The Administrator shall make a telephone loan under this 
title to an applicant therefor who is otherwise qualified to receive 
such a loan at the highest interest rate (but not less than the lowest 
interest rate, nor higher than the highest interest rate, specified in 
subsection (b)) at which the borrower would be capable of producing 
net income or margins before interest payments of at least 100 
percent (but not more than 150 percent) of the interest requirements 
on all of the applicant's outstanding and proposed loans.". 
SEC. 2362. CLARIFICATION OF TELEPHONE LOAN GUARANTEE AU-
THORITY. 
Section 306 (7 U.S.C. 936) is amended by inserting after the first 
sentence the following new sentence: "The Administrator shall not 
provide such assistance to any borrower of a telephone loan under 
this Act unless the borrower specifically applies for such assist-
ance.". 
CHAPTER 4—AMENDMENTS RELATING TO TITLE IV OF 
THE RURAL ELECTRIFICATION ACT OF 1936 
SEC. 2363. MODIFICATION OF RURAL TELEPHONE BANK BOARD. 
(a) IN GENERAL.—Section 405 (7 U.S.C. 945) is amended by striking 
all that precedes subsection (g) and inserting the following: 
"SEC. 405. BOARD OF DIRECTORS. 
"(a) IN GENERAL.—The management of the telephone bank, within 
the limitations prescribed by law, shall be vested in a board of 
directors (in this title referred to as the 'Telephone Bank Board'). 
"(b) MEMBERSHIP.—The Telephone Bank Board shall consist of 
thirteen individuals, as follows: 
"(1) PRESIDENTIAL APPOINTEES.—The President shall appoint 
seven individuals to serve on the Telephone Bank Board who 
shall serve at the pleasure of the President— 
"(A) five of whom shall be officers or employees of the 
Department of Agriculture and not officers or employees of 
the Rural Electrification Administration; and 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 4043 
"(B) two of whom shall be from the general public and not 
officers or employees of the Federsil Government. 
"(2) COOPERATIVE MEMBERS.—The cooperative-type entities, 
and organizations controlled by such entities, that hold class B 
or class C stock shsdl elect three individuals to serve on the 
Telephone Bank Board for a term of two years, by a plurality 
vote of the stockholders voting in the election. 
"(3) COMMERCIAL MEMBERS.—The commercial-type entities, 
gmd the organizations controlled by such entities, that hold class 
B or class C stock shall elect three individuals to serve on the 
Telephone Bank Board for a term of two years, by a plurality 
vote of the stockholders voting in the election. 
"(c) ELECTIONS.— 
"(1) VALIDITY.—An election under paragraph (2) or (3) of 
subsection (b) shall not be considered valid unless a majority of 
the stockholders eligible to vote in the election have voted in the 
election. 
"(2) BALLOTING.—Balloting in an election under paragraph (2) 
or (3) of subsection (b) shall be conducted by mail pursuant to 
the procedures authorized in the bylaws of the telephone bank. 
"(3) No CUMULATIVE VOTING.—Cumulative voting shall not be 
permitted in any election under paragraph (2) or (3) of subsec-
tion (b). 
"(d) COMPENSATION.— 
"(1) IN GENERAL.—Except as provided in paragraph (2), each 
member of the Telephone Bank Board shall receive $100 per day 
for each day or part thereof, not to exceed fifty days per year, 
spent in the performance of their official duties, and shall be 
reimbursed for travel and other expenses in such manner and 
subject to such limitations £is the Telephone Bank Board may 
prescribe. 
"(2) EXCEPTIONS.—The five members of the Telephone Bank 
Board appointed under subsection (b)(1)(A) shall not receive 
compensation by reason of their service on the Telephone Bank 
Board. 
"(e) SUCCESSION.—A member of the Telephone Bank Board may 
serve after the expiration of the term of office of such member until 
the successor for such member has taken office. 
"(f) CHAIRPERSON.—The members of the Telephone Bank Board 
shall elect one of such members to be the Chairperson of the Board, 
in accordance with the bylaws of the telephone bank. The Chair-
person shall preside at all meetings of the Board and may vote on a 
matter before the Board unless the vote would result in a tie vote on 
the matter.", 
(b) CONFORMING AMENDMENTS.— 
(1) SECTION 405 AMENDMENTS.—Section 405 (7 U.S.C. 945) is 
amended— 
(A) in subsection (g) by striking "(g) The" and inserting 
"(g) BYLAWS.—The"; 
(B) in subsection (h) by striking "(h) The" and inserting 
"(h) MEETINGS.—The"; and 
(C) in subsection (i) by striking "(i) The" and inserting "(i) 
ANNUAL REPORT.—The . 
(2) SECTION 410(a)(2) 
AMENDMENT.—Section 410(a)(2) (7 
U.S.C. 950(aX2)) is amended by striking "405(b)" and inserting 
"405a))(l)(A)". 
104 STAT. 4044 
PUBLIC LAW 101-624—NOV. 28, 1990 
(c) APPUCABILITY OF SUNSHINE ACT.—Section 405 (7 U.S.C. 945) is 
amended by adding at the end the following: 
"(j) OPEN MEETINGS.—For purposes of section 552b of title 5, 
United States Code, the Telephone Bank Board shall be treated as 
an agency within the meaning of subsection (aXD of such section.". 
SEC. 2
3
6
4
. 
PRO 
RATA 
PURCHASE 
OF 
RURAL 
TELEPHONE 
BANK 
STOCK 
BY 
RURAL 
TELEPHONE 
BANK 
BORROWERS. 
The second sentence of section 406(d) (7 U.S.C. 946(d)) is amended 
by inserting ", by pa3dng an amount equal to 5 per centum of the 
amount of each loan advance, at the time of such advance" before 
the period. 
SEC. 2365. CLARIFICATION OF AUTHORITY TO SET RURAL TELEPHONE 
BANK LOAN LEVELS. 
Section 408(a) (7 U.S.C. 948(a)) is amended by striking "is 
authorized on behalf of the telephone bank to make loans," and 
inserting "shall make loans on behalf of the telephone bank, to the 
extent that there are qualifying applications therefor, subject only 
to limitations as to amounts authorized for loans and advances as 
may be imposed by law enacted by the Congress of the United States 
for loans to be made in any one year, and". 
SEC. 2366. BORROWERS TO DETERMINE AMORTIZATION PERIOD FOR 
RURAL TELEPHONE BANK LOANS. 
Section 408 (7 U.S.C. 948) is amended by adding at the end the 
following new subsection: 
"(d)(1) Except as provided in paragraph (2), the term of any loan 
made under this title shall be determined by the borrower at the 
time the application for the loan is submitted. 
"(2) The term of any loan made under this title shall not exceed 
the mgiximum term for which a loan may be made under section 4.". 
SEC. 2367. TECHNICAL AMENDMENTS RELATING TO THE RURAL TELE-
PHONE BANK PROVISIONS OF THE OMNIBUS BUDGET REC-
ONCILIATION ACT OF 1987. 
(a) SECTION 406(h) AMENDMENTS.—Section 406(h) (7 U.S.C. 946(h)) 
is amended— 
(1) by inserting after the second sentence "All amounts so 
transferred shall not be transferred, directly or indirectly, to 
the reserve for contingencies."; and 
(2) by striking "Rural Telephone Bank Borrowers Fairness" 
and inserting "Omnibus Budget Reconciliation". 
(b) SECTION 408(b) (3) AMENDMENTS.—Section 408a))(3) (7 U.S.C. 
948(bX3)) is amended— 
(1) in subparagraph (B), by striking "paragraph" and insert-
ing "subparagraph"; 
(2) in subparagraph (D)(ii), by adding at the end the following: 
"For purposes of the calculation under this subparagraph, such 
rate shall be zero."; and 
(3) in subparagraph (E), by striking "subparagraph" the 
second place such term appears and inserting "paragraph". 
PUBLIC LAW 101-624—NOV. 28, 1990 
CHAPTER 5—EFFECTIVE DATE 
104 STAT. 4045 
SEC. 2368. EFFECTIVE DATE. 
(a) IN GENERAL.—Except as provided in subsection (b), this subtitle 
and the amendments made by this subtitle shall take effect on the 
date of enactment of this Act. 
(b) TECHNICAL AMENDMENTS.—The amendments made by section 
2367 shall take effect £is if such amendments had been included in 
chapter 2 of subtitle D of title I of the Omnibus Budget Reconcili-
ation Act of 1987 on the date of enactment of such chapter. 
Subtitle G—Rural Revitalization Through 
Forestry 
CHAPTER 1—FORESTRY RURAL REVITALIZATION 
SEC. 2371. FORESTRY RURAL REVITALIZATION. 
(a) 
ESTABUSHMENT OF ECONOMIC DEVELOPMENT AND GLOBAL 
MARKETING 
PROGRAM.—The Secretary 
of Agriculture, 
acting 
through the Extension Service and the Cooperative Extension 
System, and in consultation with the Forest Service, shall establish 
and implement educational programs and provide technical assist-
ance to assist businesses, industries, and policymakers to create jobs, 
raise incomes, and increase public revenues in manners consistent 
with environmental concerns. 
(b) ACTIVITIES.—Each program established under subsection (a) 
shall— 
(1) transfer technologies to natural resource-based industries 
in the United States to make such industries more efficient, 
productive, and competitive; 
(2) assist businesses to identify global marketing opportuni-
ties, conduct business on an international basis, and market 
themselves more effectively; and 
(3) train local leaders in strategic community economic devel-
opment. 
(c) TYPES OF PROGRAMS.—The Secretary of Agriculture shall estab-
lish specific programs under subsection (a) to— 
(1) deliver educational services focused on community eco-
nomic analysis, economic diversification, economic impact 
analysis, retention and expansion of existing commodity and 
noncommodity industries, amenity resource and tourism devel-
opment, and entrepreneurship focusing on forest lands and 
rural communities; 
(2) use Cooperative Extension System databsises and analyt-
ical tools to help communities diversify their economic bases, 
add value locally to raw forest product materials, and retain 
revenues by helping to develop local businesses and industries 
to supply forest products locally; and 
(3) use the full resources of the Cooperative Extension Service, 
including land-grant universities and county offices, to promote 
economic development that is sustainable and environmentally 
sound. 
7 u s e 946 note. 
Technical 
assistance. 
Business and 
industry. 
7 u s e 6601. 
104 STAT. 4046 
PUBLIC LAW 101-624—NOV. 28, 1990 
National Forest 
CHAPTER 2—NATIONAL FOREST-DEPENDENT RURAL 
Dependent 
C O M M U N I T I E S 
Communities 
Economic 
SEC. 2372. SHORT TITLE. 
Act^of 1991).°'^ 
T^^s chapter may be cited as the "National Forest-Dependent 
7 use 6601 note. Rural Communities Economic Diversification Act of 1990". 
7 u s e 6611. 
SEC. 2373. FINDINGS AND PURPOSES. 
(a) FINDINGS.—The Congress finds that— 
(1) the economic well-being of rural America is vital to our 
national growth and prosperity; 
(2) the economic well-being of many rural communities 
depends upon the goods and services that are derived from 
national forests; 
(3) the economies of many of these communities suffer from a 
lack of industrial and business diversity; 
(4) this lack of diversity is particularly serious in communities 
whose economies are predominantly dependent on timber and 
recreation resources and where management decisions made on 
the national forests by Federal and private organizations may 
disrupt the supply of those resources; 
(5) the Forest Service has expertise and resources that could 
be directed to promote modernization and economic diversifica-
tion of existing industries and services based on forest 
resources; 
(6) the Forest Service has the technical expertise to provide 
leadership, in cooperation with other governmental agencies 
and the private sector, to assist rural communities dependent 
upon national forest resources to upgrade existing industries 
and diversify by developing new economic activity in non-forest-
related industries; and 
(7) technical assistance, training, education, and other assist-
ance provided by the Department of Agriculture can be targeted 
to provide immediate help to those rural communities in great-
est need. 
(b) PURPOSES.—The purposes of this chapter are— 
(1) to provide assistance to rural communities that are located 
in or near national forests and that are economically dependent 
upon forest resources or are likely to be economically disadvan-
taged by Federal or private sector land management practices; 
(2) to aid in diversifying such communities' economic bases; 
and 
(3) to improve the economic, social, and environmental well-
being of rural America. 
7 u s e 6612. 
SEC. 2374. DEFINITIONS. 
As used in this chapter: 
(1) The term "action team" means a rural forestry and eco-
nomic diversification action team established by the Secretary 
pursuant to section 2375(b). 
(2) The term "economically disadvantaged" means economic 
hardship due to the loss of jobs or income (labor or proprietor) 
derived from forestry, the wood products industry, or related 
commercial enterprises such as recreation and tourism in the 
national forest. 
(3) The term "rural community" means— 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 4047 
(A) any town, township, municipality, or other similar 
unit of general purpose local government having a popu-
lation of not more than 10,000 individuals (according to the 
latest decennial census) that is located in a county where at 
least 15 percent of the total primary and secondary labor 
and proprietor income is derived from forestry, wood prod-
ucts, and forest-related industries such as recreation and 
tourism; or 
(B) any county or similar unit of general purpose local 
government having a population of not more than 22,550 
individuals (according to the latest decennial census) in 
which at least 15 percent of the total primary and second-
ary labor and proprietor income is derived from forestry, 
wood products, and forest-related industries such as recre-
ation and tourism, 
that is located within the boundary, or within 100 miles of the 
boundary, of a national forest. 
(4) The term "Secretary" means the Secretary of Agriculture. 
SEC. 2375. RURAL FORESTRY AND ECONOMIC DIVERSIFICATION ACTION 
7 USC 6613. 
TEAMS. 
(a) REQUESTS FOR ASSISTANCE.—Economically disadvantaged rural 
communities may request £issistance from the Secretary in identify-
ing opportunities that will promote economic improvement and 
diversification and revitalization. 
(b) ESTABLISHMENT.—Upon request, the Secretary may establish 
rured forestry and economic diversification action teams to prepare 
an action plan to provide technical assistance to economically 
disadvantaged communities. The action plan shall identify oppor-
tunities to promote economic diversification and enhance local 
economies now dependent upon national forest resources. The action 
team may also identify opportunities to use value-added products 
and services derived from national forest resources. 
(c) ORGANIZATION.—The Secretary shall design and organize any 
action team established pursuant to subsection (b) to meet the 
unique needs of the requesting rural community. Each action team 
shall be directed by an employee of the Forest Service and may 
include personnel from other agencies within the Department of 
Agriculture, from other Federal and State departments and agen-
cies, and from the private sector. 
(d) COOPERATION.—In preparing action plans, the Secretary may 
cooperate with State and local governments, universities, private 
companies, individuals, and nonprofit organizations for procure-
ment of services determined necessary or desirable. 
(e) EuGiBiUTY.—The Secretary shall ensure that no substantially 
similar geographical or defined local area in a State receives a grant 
for technical assistance to an economically disadvantaged commu-
nity under this chapter and a grant for assistance under a des-
ignated rural development program, as defined in section 365(bX2) of 
the Consolidated Farm and Rural Development Act, during any 
continuous five-year period. 
(f) APPROVAL.—After reviewing requests under this section for 
financial and economic feasibility and viability, the Secretary shall 
approve and implement in accordance with section 2376 those action 
plans that will achieve the purposes of this chapter. 
104 STAT. 4048 
PUBLIC LAW 101-624—NOV. 28, 1990 
7 use 6614. 
SEC. 2376. ACTION PLAN IMPLEMENTATION. 
(a) IN GENERAL.—Action plans shall be implemented, insofar as 
practicable, to upgrade existing industries to use forest resources 
more efficiently and to expand the economic base of rural commu-
nities so as to alleviate or reduce their dependence on national 
forest resources. 
(b) ASSISTANCE.—To implement action plans, the Secretary may 
make grants and enter into cooperative agreements and contracts to 
provide necessary technical and related assistance. Such grants, 
cooperative agreements, and contracts may be with the srffected 
rural community. State and local governments, universities, cor-
porations, and other persons. 
(c) LIMITATION.—The Federal contribution to the overall im-
plementation of an action plan shall not exceed 80 percent of the 
total cost of the plan, including administrative and other costs. In 
calculating the Federal contribution, the Secretary shall take into 
account the fair market value of equipment, personnel, and services 
provided. 
(d) AVAILABLE AUTHORITY.—The Secretary may use the Sec-
retary's authority under the Cooperative Forestry Assistance Act of 
1978 (16 U.S.C. 2101 et seq.) and other Federal, State, and local 
governmental authorities in implementing action plans. 
(e) CONSISTENCY WITH FOREST PLANS.—The implementation of 
action plans shall be consistent with land and resource management 
plans. 
7 use 6615. 
SEC. 2377. TRAINING AND EDUCATION. 
(a) PROGRAMS.—In furtherance of an action plan, the Secretary 
may use the Extension Service and other appropriate agencies of the 
Department of Agriculture to develop and conduct education pro-
grams that assist businesses, elected or appointed officials, and 
individuals in rural communities to deal with the effects of a 
transition from being economically disadvantaged to economic 
diversification. These programs may include— 
(1) community economic analysis and strategic planning; 
(2) methods for improving and retooling enterprises now 
dependent on national forest resources; 
(3) methods for expanding enterprises and creating new eco-
nomic opportunities by emphasizing economic opportunities in 
other industries or services not dependent on national forest 
resources; and 
(4) assistance in the evaluation, counseling, and enhancement 
of vocational skills, training in basic and remedial literacy 
skills, assistance in job seeking skills, and training in starting or 
operating a business enterprise. 
(b) EXISTING EDUCATIONAL AND TRAINING PROGRAMS.—Insofar as 
practicable, the Secretary shall use existing Federal, State, and 
private education resources in carrying out these programs. 
7 use 6616. 
SEC. 2378. LOANS TO ECONOMICALLY DISADVANTAGED RURAL COMMU-
NITIES. 
(a) IN GENERAL,—The Secretary, under such terms and conditions 
as the Secretary shall establish, may make loans to economically 
disadvantaged rural communities for the purposes of securing tech-
nical assistance and services to aid in the development and 
implementation of action plans, including planning for— 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 4049 
(1) improving existing facilities in the community that may 
generate employment or revenue; 
(2) expanding existing infrastructure, facilities, and services 
to capitalize on opportunities to diversify economies now 
dependent on national forest resources; and 
(3) supporting the development of new industries or commer-
cial ventures unrelated to national forest resources. 
Ot)) INTEREST RATES.—The interest rates on a loan made pursuant 
to this section shall be as determined by the Secretary, but not in 
excess of the current average market yield on outstanding market-
able obligations of the United States with remaining periods to 
maturity comparable to the maturity of such loan, plus not to 
exceed 1 percent, as determined by the Secretary, and rounded to 
the nearest one-eighth of 1 percent. 
SEC. 2379. AUTHORIZATION OF APPROPRIATIONS AND SPENDING AU- 
7 USC 6617. 
THORITY. 
(a) AUTHORIZATION OF APPROPRIATIONS.—Except as provided in 
subsection (b), there are authorized to be appropriated— 
(1) an amount not to exceed 5 percent of the sum o
f
— 
(A) the sums received by the Secretary from sales of 
timber and other products of the forests; and 
(B) user fees paid in connection with the use of forest 
lands; and 
(2) such additional sums as may be necessary to carry out the 
purposes of this chapter. 
0?) LIMITATION ON AUTHORIZATION.—Subsection (a) shall not in 
any way affect payments to the States pursuant to chapter 192 of 
the Act of May 23,1908 (16 U.S.C. 500). 
(c) SPENDING AUTHORITY.—Any spending authority (as defined in 
section 401 of the Congressional Budget Act of 1974) provided in this 
chapter shall be effective for any fiscal year only to such extent or in 
such amounts as are provided in appropriation Acts. 
Subtitle H—Miscellaneous Provisions 
SEC. 2381. NATIONAL RURAL INFORMATION CENTER CLEARINGHOUSE. 
7 USC 3125b. 
(a) ESTABUSHMENT.—The Secretary shall establish, within the 
National Agricultural Library, in coordination with the Extension 
Service, a National Rural Information Center Clearinghouse (in this 
section referred to as the "Clearinghouse") to perform the functions 
specified in subsection (b). 
(b) FUNCTIONS.—The Clearinghouse shall provide and distribute 
information and data to any industry, organization, or Federal, 
State, or local government entity, on request, about programs and 
services provided by Federal, State, and local agencies and private 
nonprofit organizations and institutions under which individuals 
residing in, or organizations and State and local government entities 
operating in, a rural area may be eligible for any kind of assistance, 
including job training, education, health care, and economic devel-
opment assistance, and emotional and financial counseling. To the 
extent possible, the National Agricultural Library shall use tele-
communications technology to disseminate information to rural 
areas. 
(c) FEDERAL AGENCIES.—On request of the Secretary, the head of a 
Federal agency shall provide to the Clearinghouse such information 
104 STAT. 4050 
PUBLIC LAW 101-624—NOV. 28, 1990 
as the Secretary may request to enable the Clearinghouse to carry 
out subsection (b). 
(d) STATE AND LOCAL AGENCIES AND NONPROFIT ORGANIZATIONS.— 
The Secretary shall request State and local governments and pri-
vate nonprofit organizations and institutions to provide to the 
Clearinghouse such information as such agencies and organizations 
may have about any program or service of such agencies, organiza-
tions, and institutions under which individuals residing in a rural 
area may be eligible for any kind of assistance, including job train-
ing, educational, health care, and economic development assistance, 
and emotional and financial counseling. 
(e) LIMITATION ON AUTHORIZATION OF APPROPRIATIONS.—To carry 
out this section, there are authorized to be appropriated $500,000 for 
each of the fiscal years 1991 through 1995. 
13 u s e 141 note. 
SEC. 2382. MONITORING THE ECONOMIC PROGRESS OF RURAL AMERICA. 
(a) BUREAU OF THE CENSUS.—The Director of the Bureau of the 
Census shall expand the data collection efforts of the Bureau to 
enable the Bureau to collect statistically significant data concerning 
the changing economic condition of rural counties and communities 
in the United States, including data on rural employment, poverty, 
income, and other information concerning the rural labor force. 
Q)) LIMITATION ON AUTHORIZATION OF APPROPRIATIONS.—To carry 
out subsection (a), there are authorized to be appropriated $1,000,000 
for each fiscal year. 
SEC. 2383. LOAN RATES APPLICABLE TO CERTAIN LOANS UNDER THE 
CONSOLIDATED FARM AND RURAL DEVELOPMENT ACT. 
Section 307(a)(3) of the Consolidated Farm and Rural Develop-
ment Act (7 U.S.C. 1927(a)(3)) is amended— 
(1) in subparagraph (A), by striking "guranteed" and inserting 
"guaranteed"; and 
(2) by adding at the end the following new subparagraph: 
"(C) Notwithstanding subparagraph (A), the Secretary shall estab-
lish loan rates for health care and related facilities based solely on 
the income of the area to be served, and such rates shall be 
otherwise consistent with such subparagraph.". 
SEC. 2384. ASSISTANCE FOR CERTAIN DISTRESSED COMMUNITY FACILITY 
PROGRAM BORROWERS. 
(a) AMENDMENT.—The Consolidated Farm and Rural Development 
Act is amended by inserting after section 353 (7 U.S.C. 2001) the 
following new section: 
"SEC. 353A. DEBT RESTRUCTURING AND LOAN SERVICING FOR COMMU-
NITY FACILITY LOANS. 
"The Secretary shall establish and implement a program that is 
similar to the program established under section 353, except that 
the debt restructuring and loan servicing procedures shall apply to 
delinquent community facility program loans (rather than delin-
quent farmer program loans) made by the Farmers Home Adminis-
tration to a hospital or health care facility under section 306(a).". 
(b) REGULATIONS.—Not later than 120 days after the date of 
enactment of this Act, the Secretary shall promulgate regulations, 
modeled after those promulgated under such section 353, that imple-
ment the program established under section 353A of the Consoli-
dated Farm and Rural Development Act. 
Health care. 
7 u s e 2001a. 
7 u s e 2001a 
note. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 4051 
SEC. 2385. ANALYSIS BY OFFICE OF TECHNOLOGY ASSESSMENT. 
7 USC 950aaa-4. 
(a) IN GENERAL.—The Office of Technology Assessment shall in-
clude, in a study of the effects of information age technology on 
rural America, an analysis of the feasibility of ensuring that rural 
citizens in their homes and schools have the ability to acquire, by 
computer, information in a national library. 
(b) CONTENTS.—In conducting the analysis under subsection (a), 
the Office of Technology Assessment shall— 
(1) evaluate, in consultation with the Librarian of Congress, 
the costs and benefits of establishing a national library whose 
volumes, periodicals, instructional materials, sound and video 
resources, and other data are accessible to individuals through 
their personal computers; 
(2) assess the technological, regulatory, or other impediments 
to the establishment of the library and information retrieval 
system described in paragraph (1), and the length of time 
required to establish such a library and retrieval system; 
(3) describe the potential for the library and information 
described in paragraph (1) to provide rural citizens the oppor-
tunity to study and explore foreign languages, geography, math, 
science, history, or other interests, and to exchange scholarly 
information and ideas with other users, and otherwise to engage 
in interactive study; and 
(4) recommend to the Congress the measures that should be 
taken to establish the library and retrieval system described in 
paragraph (1). 
SEC. 2386. GRANTS TO BROADCASTING SYSTEMS. 
Section 310B(f) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1932(f)) is amended by adding at the end the following 
new paragraph: 
"(4) The Secretary may make grants to statewide private non-
profit public television systems, whose coverage area is predomi-
nately rural, for the purpose of demonstrating the effectiveness of 
such systems in providing information on agriculture and other 
issues of importance to farmers and other rural residents. Grants 
available under this paragraph may be used for capital equipment 
expenditures, start-up and program costs, and other costs necessary 
to the operation of such demonstrations.". 
SEC. 2387. MERGER OF CERTAIN RURAL ELECTRIC COOPERATIVES. 
Section 306B of the Rural Electrification Act of 1936 (7 U.S.C. 
936b) is amended— 
(1) by inserting "(a)" before "A direct"; and 
(2) by adding at the end the following new subsection: 
"(b) Notwithstanding subsection (a), a direct or insured loan may 
be prepaid by an electric borrower at the lesser of the outstanding 
principal balance due thereon or the present value thereof dis-
counted from the face value at maturity at the rate set by the 
Administrator if the borrower is an electrical organization which 
resulted from a merger or consolidation between a borrower and an 
organization which, prior to October 1, 1987, prepaid its direct or 
insured loans pursuant to this section. Prepayments by a borrower 
hereunder shall be made not later than one year after the effective 
date of the merger, consolidation, or other transaction. The discount 
rate to be set by the Administrator for direct or insured loans 
prepayments hereunder shall be based on the current cost of funds 
104 STAT. 4052 
PUBLIC LAW 101-624—NOV. 28, 1990 
to the Department of the Treasury for obligations of comparable 
maturity to those being prepaid. If a borrower prepays using tax 
exempt financing, the discount shall be adjusted to make the dis-
count equivalent to fully taxable financing. The borrower shall 
certify in writing whether the financing will be tax exempt and 
shall comply with such other terms and conditions as the Adminis-
trator may establish which are reasonable and necessary to imple-
ment this provision. As used in this section, the term 'direct loan' 
means a loan made under section 4.". 
SEC. 2388. TECHNICAL CORRECTIONS. 
(a) SECTION 308 AMENDMENTS.—Section 308 of the Consolidated 
Farm and Rural Development Act (7 U.S.C. 1928) is amended— 
(1) in paragraph (a), by striking "prescribe,;" and inserting 
"prescribe;"; and 
(2) by redesignating paragraphs (a) and 0)), as paragraphs (1) 
and (2), respectively. 
03) AMENDMENT TO SECTION 310B(a).—Section 310B(a) of such Act 
(7 U.S.C. 1932(a)) is amended by striking "subsections (a) and (c)" 
and inserting "paragraphs (1) and (3)". 
(c) SECTION 310B (d) AMENDMENTS.—Section 310B(d) of such Act (7 
U.S.C. 1932(d)) is amended— 
(1) by moving paragraphs (4), (5), and (6) two ems to the left so 
that the left margin of such paragraphs is aligned with the left 
margin of paragraph (3); 
(2) in paragraph (3), by striking "paragraph (1) and (2)" and 
inserting "paragraphs (2) and (3)"; 
(3) by redesignating paragraphs (1) through (6) as paragraphs 
(2) through (7), respectively; and 
(4) by inserting "(1)" after "(d)". 
(d) AMENDMENTS RELATING TO SECTION 331.— 
(1) SECTION 33I AMENDMENTS.—Section 331 of such Act (7 
U.S.C. 1981) is amended— 
(A) in the second undesignated subsection— 
(i) by moving paragraphs (f), (g), (h), and (i) two ems to 
the right so that the left margin of each of such para-
graphs is aligned with the left margin of paragraph (e); 
(ii) in paragraph (f), by striking "Release" and insert-
ing "release"; 
(iii) in paragraph (g), by striking "Obtain" and insert-
ing "obtain"; 
(iv) in paragraph (h), by striking "Not" and inserting 
"not"; 
(v) in paragraph (i)— 
(I) by striking "Consent" and inserting "con-
sent"; and 
(II) by redesignating subparagraphs (1) and (2) as 
subparagraphs (A) and (B), respectively; 
(vi) in paragraph (d), by redesignating subparagraphs 
(1) and (2) as subparagraphs (A) and (B), respectively; 
and 
(vii) by redesignating paragraphs (a) through (j) as 
paragraphs (1) through (10), respectively; and 
(B) by redesignating the first and second undesignated 
subsections as subsections (a) and 0)), respectively. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 4053 
(2) CONFORMING AMENDMENTS.—Section 35703) of such Act (7 
U.S.C. 20050))) is amended by striking "331(d)" each place such 
term appears and inserting "3310t)X4)". 
(e) AMENDMENTS TO SECTION 333.—Section 333 of such Act (7 
U.S.C. 1983), as amended by section 1810 of this Act, is amended— 
(1) in paragraph (a), by redesignating subparagraphs (1) and 
(2) as subparagraphs (A) and (B), respectively; 
(2) in paragraph Qy)— 
(A) in subparagraph (1), by redesignating clauses (A), (B), 
and (C) as clauses (1), (2), and (3), respectively; and 
(B) by redesignating subparagraphs (1) and (2) as subpara-
graphs (A) and (B), respectively; 
(3) in paragraphs (c) and (e), by striking "of this title" each 
place such term appears"; Eind 
(4) by redesignating paragraphs (a), 0)), (c), (d), and (e) as 
paragraphs (1), (2), (3), (4), and (5), respectively. 
(f) SECTION 333A(C) AMENDMENT.—Section 333A(c) of such Act (7 
U.S.C. 1983a(c)) is amended by striking "In" and inserting "If. 
(g) SECTION 335(CX2)(D) AMENDMENT.—Section 335(cX2XD) of such 
Act (7 U.S.C. 1985(cX2XD)) is amended by striking "caused" and 
inserting "cause". 
(h) SECTION 343(a) AMENDMENTS.—Section 343(a) of such Act (7 
U.S.C. 1991(a)) is amended— 
(1) in paragraph (1), by striking "and"; 
(2) in paragraph (3), by striking "and" the third place such 
term appears; and 
(3) in paragraph (5), by striking "contract of insurance" and 
inserting "'contract of insurance"'. 
(i) SECTION 3460)) AMENDMENTS.—Section 346(b) of such Act (7 
U.S.C. 19940))) is amended— 
(1) in paragraph (IXB), by striking "subparagraph (C)" and 
inserting "paragraph (3)"; 
(2) in paragraph (IXC), by striking "subparagraph (A)" and 
inserting "paragraph (1)"; 
(3) by redesignating paragraphs (1) (A), (B), (C), (DXi), and (E) 
as paragraphs (1), (2), (3), (4), and (5), respectively; 
(4) in paragraph (2) (as so redesignated by paragraph (3) of 
this subsection), by redesignating clauses (i), (ii), and (iii) as 
subparagraphs (A), (B), and (C), respectively; 
(5) in each of the subparagraphs redesignated as such by 
paragraph (4) of this subsection, by redesignating subclauses (I) 
and (II) as clauses (i) and (ii), respectively; and 
(6) in paragraph (5) (as so redesignated by paragraph (3) of 
this subsection), by redesignating clauses (i), (ii), and (iii) as 
subparagraphs (A), (B), and (C), respectively. 
(j) SECTION 349(a) AMENDMENT.—Section 349(a) of such Act (7 
U.S.C. 1997(a)) is amended by redesignating paragraph (5) £is para-
graph (4). 
SEC. 2389. GRANTS FOR FINANCIALLY STRESSED FARMERS, DISLOCATED 
FARMERS, AND RURAL FAMILIES. 
(a) EXTENSION OF GRANT PROGRAM.—Section 502(fK2) of the Rursil 
Development Act of 1972 (7 U.S.C. 2662(fK2)) is amended— 
(1) by striking "1990" and inserting "1995"; and 
(2) by inserting after "under paragraph (1)" the following: "to 
eligible applicants in £iny State applying for such grants". 
104 STAT. 4054 
PUBLIC LAW 101-624—NOV. 28, 1990 
(b) CHANGES TO GRANT PROGRAM.—Section 502(fXl) of such Act (7 
U.S.C. 2662(f)(1)) is amended— 
(1) in subparagraph (A), by striking "special grants" and all 
that follows through "counseling" and inserting the following: 
"competitive grants for programs that meet the criteria speci-
fied in subparagraph (B) to develop counseling, retraining, and 
educational"; 
(2) by redesignating subparagraphs (C) and (D) as subpara-
graphs (E) and (F), respectively; 
(3) in subparagraph (B)— 
(A) by striking "(B) Services to be provided", the matter 
preceding the clauses, and clause (i); and 
(B) by redesignating clauses (ii) through (viii) as clauses (i) 
through (vii) of subparagraph (D); 
(4) by inserting after subparagraph (A) the following new 
subparagraphs: 
"(B) GRANT CRITERIA.—In order to be eligible to receive a 
grant under this subsection, an applicant must provide 
suitable assurances that— 
"(i) not less than one-half of the grant funds to the 
applicant will be used for clinical outreach counseling 
and crisis management assistance, as required by 
subparagraph (C); 
"(ii) a significant number of farms within the State 
have a ratio of debts to assets of 40 percent or more, the 
State's rural economy has been facing adverse eco-
nomic conditions for a period of years, or such other 
conditions exist, as determined by the Secretary, such 
that the assistance provided under this subsection is 
necessary or appropriate; 
"(iii) the planning and implementation of the provi-
sion of services under this subsection will be coordi-
nated with the appropriate State agency for mental 
health, department of health, office of rural health, and 
any other State agency or department responsible for 
assisting persons in rural areas of the State; and 
"(iv) the planning and implementation of the provi-
sion of services under this subsection will be coordi-
nated with the appropriate local governments and 
other public and private nonprofit agencies and 
organizations located in rural areas and involved in 
addressing problems related to the mental health of 
rural residents. 
"(C) COUNSELING AND OUTREACH REQUIRED.—Not less 
than 50 percent of the grant funds to a State under this 
subsection shall be used to provide clinical outreach coun-
seling and crisis management assistance. 
"(D) OTHER SERVICES TO BE PROVIDED.—In addition to 
the 
counseling and outreach services required under subpara-
graph (C), the following services may also be provided 
through programs funded under this section:"; 
(5) by adding at the end of subparagraph (D) (as added by 
paragraph (4) of this subsection) the following new clause: 
"(viii) Assistance for local officials and groups in 
developing income and emplo5mient alternatives. ; and 
(6) in subparagraph (F) (as so redesignated by paragraph (2) of 
this subsection)— 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 4055 
(A) by striking "is encouraged to work with" and insert-
ing "shall work with the appropriate State office of rural 
health, State department or agency of mental health, and 
other"; 
(B) by striking "a comprehensive plan" and inserting "an 
annual comprehensive plan"; 
(C) by striking "special"; and 
(D) by adding at the end the following: "For recipients in 
a State to be eligible for a grant under this subsection in 
any fiscal year, the Cooperative Extension Service within 
the State must develop and sign a Memorandum of Agree-
ment with the appropriate State department or agency of 
mental health and other State agencies as may be appro-
priate to carry out the comprehensive plan. Such gigree-
ment and plan must emphasize the development and deliv-
ery of counseling and outreach programs as provided under 
subparagraph (B).". 
(c) CONFORMING AMENDMENTS.— 
(1) Such section is further amended by striking "(f) Special" 
and inserting "(f) Competitive". 
(2) Section 503(c) of such Act (7 U.S.C. 2663(c)) is amended— 
(A) by inserting "ADDITIONAL DISTRIBUTIONS.—(1)" after 
"(c)"; 
(B) by striking "and section 502(f)" each place such term 
appears; and 
(C) by adding at the end the following new paragraph: 
"(2) The Secretary shall distribute the amounts appropriated to 
carry out section 502(f) to colleges and universities in accordance 
with the requirements of such subsection.". 
(d) EFFECT OF AMENDMENTS ON CURRENT GRANT RECIPIENTS.—The 
eight States receiving grants under section 502(f) of the Rural 
Development Act of 1972 (7 U.S.C. 2662(f)) during fiscal year 1990 
shall continue to be eligible to receive grants (in an amount not to 
exceed the amount received during that fiscal year) under that 
section notwithstanding that such grants be awarded competitively, 
so long as such States comply with the requirement under subpara-
graph (C) that not less than one-half of such grant amount shall be 
used for clinical outreach counseling and crisis management 
assistance. 
SEC. 2390. RURAL HEALTH AND SAFETY EDUCATION. 
(a) SHORT TITLE.—This section may be cited as the "Rural Health 
and Safety Education Act of 1990". 
(b) RURAL HEALTH AND SAFETY EDUCATION PROGRAMS.— 
(1) IN GENERAL.—Section 502 of the Rural Development Act of 
1972 (7 U.S.C. 2661) is amended by adding after the subsection 
added by section 2346 of this Act the following new subsection: 
"(h) RURAL HEALTH AND SAFETY EDUCATION PROGRAMS.— 
"(1) PROGRAMS AUTHORIZED.— 
"(A) 
INDIVIDUAL AND FAMILY HEALTH EDUCATION.—-The 
Secretary may make grants for the establishment of 
individual and family health education programs that shall 
provide individuals and families with— 
"(i) information concerning the value of good health; 
"(ii) information to increase the individual or fami-
lies motivation to take more responsibility for their 
own health; 
7 u s e 2662. 
Colleges and 
universities. 
7 u s e 2662 note. 
Rural Health 
and Safety 
Education Act of 
1990. 
Grant programs. 
7 u s e 2661 note. 
7 u s e 2662. 
104 STAT. 4056 
PUBLIC LAW 101-624—NOV. 28, 1990 
"(iii) access to health promotion activities; and 
"(iv) training for volunteers and health services 
providers concerning health promotion and health care 
services, in cooperation with the Department of Health 
and Human Services. 
"(B) FARM SAFETY EDUCATION.—The Secretary may make 
grants for the establishment of farm safety education pro-
grams that shall provide information and training to farm 
workers, timber harvesters, and farm families concerning 
safety in the work place, including information and train-
ing concerning— 
"(i) the reduction of occupational injury and death 
rates; 
"(ii) the reduction and prevention of exposure to. 
farm chemicals; 
"(iii) the reduction of agricultural respiratory dis-
eases and dermititis; 
"(iv) the reduction and prevention of noise induced 
hearing loss; 
"(v) the occupational rehabilitation of farmers and 
timber harvesters with physical disabilities; and 
"(vi) farm accident rescue procedures. 
"(2) COORDINATION OF PROGRAMS.—Educational programs con-
ducted with grants awarded under this subsection shall be 
coordinated with the State offices of rural health and other 
appropriate programs of the Department of Health and Human 
Services. 
"(3) DISSEMINATION OF INFORMATION.—Educational programs 
conducted with grants awarded under this subsection shall 
provide leadership within the State for the dissemination of 
appropriate rural health and safety information resources pos-
sessed by the Rural Information Center established at the 
National Agricultural Library. 
"(4) PROCEDURES AND UMITATIONS.—The Secretary shall 
establish policies, procedures and limitations that shall apply to 
States that desire to receive a grant under this subsection. In 
States with land-grant colleges and universities that are eligible 
to receive funds under the Act of July 2, 1862 (7 U.S.C. 301 et 
seq.), and the Act of August 30, 1890 (7 U.S.C. 321 et seq.), 
including Tuskegee University, and universities which receive 
Rural Health Research Center grants, such eligible institutions 
shall mutually determine the type of rural health and safety 
education program needed in the State within which such 
institutions reside. 
"(5) LIMITATIONS ON AUTHORIZATION OF APPROPRIATIONS.—For 
grants under this subsection, there are authorized to be appro-
priated $5,000,000 for fiscal year 1991, $10,000,000 for fiscal year 
1992, $15,000,000 for fiscal year 1993, and $20,000,000 for fiscal 
year 1994 and each subsequent fiscal year. Amounts appro-
priated under this subsection shall remain available until ex-
pended.". 
(2) TECHNICAL AMENDMENT.—Section 503(c) of such Act (7 
U.S.C. 2663(c)) is amended by striking "and section 502(f)" and 
inserting "section 502(f), and section 502(h)". 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 4057 
SEC. 2391. RURAL HEALTH INFRASTRUCTURE IMPROVEMENT. 
7 USC 2662 note. 
(a) GRANT FOR DEMONSTRATION PROJECT.—The Secretary of Agri-
culture shEill award a grant for the establishment of a project to 
demonstrate a model approach to improving rural health infrastruc-
ture. The project established with such grant shall— 
(1) carry out systematic, community-based rural health needs 
assessments; 
(2) identify and coordinate available health services resources; 
(3) improve community infrastructure through health edu-
cation and information and leadership development and train-
ing; and 
(4) develop community generated heedth improvement strate-
gies. 
(b) PROJECT IMPLEMENTATION.—The project established under 
subsection (a) shall be implemented through the cooperation of— 
(1) an academic medical center with accredited health profes-
sions schools, including schools of medicine, dentistry, public 
health, nursing, and allied heedth; 
(2) the Cooperative Extension System of a land-grant univer-
sity; £ind 
(3) county-based citizens' organizations concerned with rural 
health services. 
(c) LIMITATIONS ON AUTHORIZATION OF APPROPRIATIONS.—To carry 
out subsection (a), there are authorized to be appropriated such 
sums as may be necessary in each fiscal year. Amounts appropriated 
under this subsection shall remain available until expended. 
SEC. 2392. CENSUS OF AGRICULTURE. 
The Secretary of Commerce shall include questions relating to 
agricultural accidents and farm safety in thes 1992 Census of 
Agriculture. 
SEC. 2393. LIMITATION ON CONDITIONS FOR WATER AND SEWER GRANTS 
13 USC 142 note. 
AND LOANS. 
Section 306(a) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1926(a)) is amended by adding after the paragraph 
added by section 2329 of this Act the following new paragraph: 
"(21) In making or insuring loans or making grants under this 
subsection, the Secretary may not condition approval of such loans 
or grants upon any requirement, condition or certification other 
than those specified under this Act.". 
SEC. 2394. ENCOURAGEMENT OF PRIVATE CONTRACTING. 
7 USC 2204d. 
(a) IN GENERAL.—For the purpose of promoting local job creation 
and private sector investment in rural communities, the Secretary 
of Agriculture is encouraged, where appropriate and fesisible, to use 
private enterprise concerns located in rural areas, rather than 
government employees or government enterprises, to provide 
commercial activities or products to carry out the purposes of this 
title. 
(b) PLAN REQUIRED.—The Secretary shall develop and implement 
a plan that will result in increasing the use of contracts awarded to 
private firms by the Department of Agriculture, and maximizing the 
use of grant, loan, or other financial Eissistance made for the purpose 
of rural development to provide the goods and services purchased to 
carry out the purposes of this title. 
104 STAT. 4058 
PUBLIC LAW 101-624—NOV. 28, 1990 
7 u s e 2007 note. 
SEC. 2395. PRESERVATION OF ELIGIBILITY. 
Notwithstanding any other provision of law, this title shall not be 
construed to adversely affect the eligibility, as it existed on the date 
of enactment of this Act, of cooperatives and other entities for any 
other credit assistance under Federal law. 
7 u s e 2007 note. 
SEC. 2396. REGULATIONS. 
Except as otherwise provided in this title, no later than 180 days 
after the date of the enactment of this Act, the Secretary shall 
promulgate such regulations as may be necessary to carry out this 
title and the amendments made by this title. 
G
l
o
b
a
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l
i
m
a
t
e 
TITLE XXIV—GLOBAL CLIMATE CHANGE 
Change 
Prevention Act 
of 1990. 
SEC. 2401. SHORT TITLE. 
This title may be cited as the "Global Climate Change Prevention 
Act of 1990". 
7 use 6701. 
SEC. 2402. GLOBAL CLIMATE CHANGE PROGRAM. 
(a) EsTABUSHMENT.—For the purpose of having within the Depart-
ment of Agriculture a focal point for coordinating all issues of 
climate change, the Secretary of Agriculture (hereafter in this title 
referred to as the "Secretary") shall establish a Global Climate 
Change Program (hereafter in this section referred to as the "Pro-
gram '). The Secretary shall designate a director of the Program who 
shall be responsible to the Secretary for carrying out the duties 
specified in subsections (b) and (c). 
(b) GENERAL DUTIES.—The Director shall— 
(1) coordinate policy analysis, long range planning, research, 
and response strategies relating to climate change issues; 
(2) provide liaison with other Federal agencies, through the 
Office of Science and Technology Policy, regarding issues of 
climate change; 
(3) inform the Department of scientific developments and 
policy issues relating to the effects of climate change on agri-
culture and forestry, including broader issues that affect the 
impact of climate change on the farms and forests of the United 
States; 
(4) recommend to the Secretary alternative courses of action 
with which to respond to such scientific developments and 
policy issues; and 
(5) ensure that recognition of the potential for climate change 
is fully integrated into the research, planning, and decision-
making processes of the Department. 
(c) SPECIFIC RESPONSIBILITIES.—The Director shall— 
(1) coordinate the global climate change studies required by 
section 2403; 
(2) provide, through such other agencies as the Secretary 
determines appropriate, competitive grants for research in cli-
matology relating to the potential impact of climate change on 
agriculture; 
(3) coordinate the participation of the Department in inter-
agency climate-related activities; 
(4) consult with the National Academy of Sciences and pri-
vate, academic. State, and local groups with respect to climate 
research and related activities; 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 4059 
(5) represent the Department to the Office of Science and 
Technology Policy and coordinate the activities of the Depart-
ment in response to requirements of this title; 
(6) represent the Department on the Intergovernmental Panel 
on Climate Change; and 
(7) review all Department budget items relating to climate 
change issues, including specifically the research budget to be 
submitted by the Secretary to the Office of Science and Tech-
nology Policy and the Office of Management and Budget. 
SEC. 2403. STUDY OF GLOBAL CLIMATE CHANGE, AGRICULTURE, AND 
7 USC 6702. 
FORESTRY. 
(a) CROPS.— 
(1) IN GENERAL.—The Secretary shall study the effects of 
global climate change on agriculture and forestry. The study 
shall, at a minimum address— 
(A) the effects of simultaneous increases in temperature 
£uid carbon dioxide on crops of economic significance; 
(B) the effects of more frequent or more severe weather 
events on such crops; 
(C) the effects of potential changes in hydrologic regimes 
on current crop jdelds; 
(D) the economic effects of widespread and incregised 
drought frequency in the south, midwest, and plains States; 
and 
(E) changes in pest problems due to higher temperatures. 
(2) FURTHER STUDIES.—If the results of the study conducted 
under paragraph (1) warrant, the Secretary shall conduct fur-
ther studies that address the means of mitigating the effects of 
global climate change on crops of economic significance that 
shall, at a minimum— 
(A) identify whether climate change tolerance can be 
bred into these crops, the amount of time necessary for any 
such breeding, and the effects on the income of farmers; 
(B) evaluate existing genetic resource and breeding pro-
grsuns for crops for their ability to develop new varieties 
that can tolerate potential climate changes; and 
(C) assess the potential for the development of crop vari-
eties that are tolerant to climate changes and other 
environmental stresses, such as drought, pests, and salinity. 
G)) FORESTS.—The Secretary shall conduct a study on the emis-
sions of methane, nitrous oxide, and hydrocarbons from tropical and 
temperate forests, the manner in which such emissions may affect 
global climate change; the manner in which global climate change 
may affect such emissions; and the manner in which such emissions 
may be reduced through management practices. The study shall, at 
a minimum— 
(1) obtain measurements of nitrous oxide, methane, and 
nonmethane hydrocarbons from tropical and temperate forests; 
(2) determine the manner in which the nitrous oxide, meth-
ane, and nonmethane hydrocarbon emissions from temperate 
and tropical forest systems will respond due to climate change; 
and 
(3) identify and address alternative management strategies 
for temperate and tropical forests that may mitigate any nega-
tive effects of global climate change. 
39-194 O - 91 - 24 : QL 3 Part 5 
104 STAT. 4060 
PUBLIC LAW 101-624—NOV. 28, 1990 
(c) REPORTS.—The Secretary shall submit reports of the studies 
conducted under subsections (a) and (b) within 3 and 6 years, 
respectively, after the date of enactment of this Act to the Commit-
tee on Agriculture and the Committee on Science, Space, and Tech-
nology of the House of Representatives, and the Committee on 
Agriculture, Nutrition, and Forestry of the Senate. In addition, 
interim reports regarding such studies shall be provided by the 
Secretary to such Committees annually, with recommendations for 
actions which may be taken to mitigate the negative effects of global 
climate change and to adapt to global climate changes and related 
phenomena. 
7 use 6703. 
SEC. 2404. TECHNICAL ADVISORY COMMITTEE. 
(a) ESTABLISHMENT.—The Secretary of Agriculture shall establish 
a technical advisory committee to provide advice to the Secretary 
concerning the major study areas required under this title. 
(b) MEMBERS.—The committee established under subsection (a) 
shall be composed of such representatives of universities, profes-
sional societies, government laboratories, and agricultural, environ-
mental and other organizations as the Secretary of Agriculture, in 
consultation with the Office of Science and Technology Policy and 
the Administrator of the Environmental Protection Agency, deter-
mines appropriate based on an assessment by the Secretary of 
qualifications required for service on such committee. Appointments 
to such committee shall be made not later than 90 days after the 
date of the enactment of this Act. Such committee shall have a 
chairperson who shall be elected by the members of the committee 
from among such members. 
7 use 6704. 
SEC. 2405. OFFICE OF INTERNATIONAL FORESTRY. 
(a) ESTABLISHMENT.—The Secretary, acting through the Chief of 
the Forest Service, shall establish an Office of International For-
estry within the Forest Service within six months after the date of 
enactment of this Act. 
(b) DEPUTY CHIEF DESIGNATION.—The Chief shall appoint a 
Deputy Chief for International Forestry. 
(c) DUTIES.—The Deputy Chief shall— 
(1) be responsible for the international forestry activities of 
the Forest Service; 
(2) coordinate the activities of the Forest Service in im-
plementing the provisions of this title; and 
(3) serve as Forest Service liaison to the director for the 
program established pursuant to section 2402. 
7 use 6705. 
SEC. 2406. LINE ITEM. 
The President's proposed budget to Congress for the first fiscal 
year beginning after the date of enactment of this Act and for each 
subsequent fiscal year shall specifically identify funds to be spent on 
Forest Service international cooperation and assistance. 
Puerto Rico. 
SEC. 2407. INSTITUTES OF TROPICAL FORESTRY. 
7 u s e 6706 
The Secretary is authorized and directed to establish an Institute 
of Tropical Forestry in Puerto Rico and an Institute of Pacific 
Islands Forestry (hereafter in this section referred to as the 
"Institutes"). The Institutes shall conduct research on forest 
management and natural resources that shall include— 
(1) management and development of tropical forests; 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 4061 
(2) the relationship between climate change and tropical for-
ests; 
(3) threatened and endangered species; 
(4) recreation and tourism; 
(5) development of tropical forest resources on a sustained 
yield basis; 
(6) techniques to monitor the health and productivity of tropi-
cal forests; 
(7) tropical forest regeneration and restoration; and 
(8) the effects of tropical deforestation on biodiversity, global 
climate, wildlife, soils, and water. 
SEC. 2408. THE FOREST AND RANGELAND RENEWABLE RESOURCES 
PLANNING ACT OF 1974. 
(a) RENEWABLE RESOURCE ASSESSMENT.—Section 3(a) of the Forest 
and Rangeland Renewable Resources Planning Act of 1974 (16 
U.S.C. 1601(a)) is amended— 
(1) in paragraph (3), by striking "and" at the end thereof; 
(2) in paragraph (4), by striking the period and inserting 
"; and"; and 
(3) by adding at the end thereof the following new paragraphs: 
"(5) an analysis of the potential effects of global climate 
change on the condition of renewable resources on the forests 
and rangelands of the United States; and 
"(6) an analysis of the rural and urban forestry opportunities 
to mitigate the buildup of atmospheric carbon dioxide and 
reduce the risk of global climate change,". 
(b) RENEWABLE RESOURCE PROGRAM.—Section 4 of such Act (16 
U.S.C. 1602) is amended in paragraph (5)— 
(1) by striking "and" at the end of subparagraph (D); 
(2) by striking the period at the end of subparagraph (E) and 
inserting "; and"; and 
(3) by adding at the end thereof the following new subpara-
graph: 
"(F) account for the effects of global climate change on 
forest and rangeland conditions, including potential effects 
on the geographic ranges of species, and on forest and 
rangeland products.". 
SEC. 2409. URBAN FORESTRY DEMONSTRATION PROJECTS. 
7 USC 6707. 
The Secretary is authorized to undertake, through the Forest 
Service's Northeastern Area State and Private Forestry program, a 
study and pilot implementation project to demonstrate the benefits 
of retaining and integrating forests in urban development. The focus 
of such a study and implementation project should be to protect the 
environment and associated natural resource values, for current 
and future generations. 
SEC. 2410. BIOMASS ENERGY DEMONSTRATION PROJECTS. 
7 USC 6708. 
The Secretary, in consultation with the Secretary of Energy, may 
carry out projects that demonstrate the potential of short-rotation 
silvicultural methods to produce wood for electricity production and 
industrial energy needs. In carrying out such projects, the Secretary 
shall cooperate with private industries. Federal and State agencies, 
and other organizations. 
104 STAT. 4062 
PUBLIC LAW 101-624—NOV. 28, 1990 
7 u s e 6709. 
SEC. 2411. INTERAGENCY COOPERATION TO MAXIMIZE BIOMASS GROWTH. 
The Secretary may enter into an agreement with the Secretary of 
Defense to— 
(1) conduct a study of reforestation and improved manage-
ment of Department of Defense military installations and lands; 
and 
(2) develop a program to manage such forests and lands so £is 
to maximize their potential for biomass growth and sequester-
ing carbon dioxide. 
7 u s e 6710. 
SEC. 2412. AUTHORIZATION OF APPROPRIATIONS. 
There are authorized to be appropriated such sums as may be 
necessary for each of the fiscal years 1991 through 1996, to carry out 
this title. 
TITLE XXV—OTHER RELATED 
PROVISIONS 
7 u s e 2279. 
SEC. 2501. OUTREACH AND ASSISTANCE FOR SOCIALLY DISADVANTAGED 
FARMERS AND RANCHERS. 
(a) OUTREACH AND ASSISTANCE.— 
(1) IN GENERAL.—The Secretary of Agriculture (hereafter re-
ferred to in this section as the "Secretary") shall provide out-
reach and technical assistance to encourage and assist socially 
disadvantaged farmers and ranchers to own and operate farms 
and ranches and to participate in agricultural programs. This 
assistance should include information on application and bid-
ding procedures, farm 
management, and other 
essential 
information to participate in agricultural programs. 
(2) GRANTS AND CONTRACTS.—The Secretary may make grants 
and enter into contracts and other agreements in the further-
ance of this section with the following entities— 
(A) any community based organization that— 
(i) has demonstrated experience in providing agricul-
tural education or other agriculturally related services 
to socially disadvantaged farmers and ranchers; 
(ii) provides documentary evidence of its past experi-
ence of working with socially disadvantaged farmers 
and ranchers during the two years preceding its 
application for assistance under this section; and 
(iii) does not engage in activities prohibited under 
section 501(cX3) of the Internal Revenue Code of 1986; 
and 
(B) 1890 Land-Grant Colleges including Tuskegee In-
stitute, Indian tribal community colleges and Alaska native 
cooperative colleges, Hispanic serving post-secondary edu-
cational institutions, and other post-secondary educational 
institutions with demonstrated experience in providing 
Eigriculture education or other agriculturally related serv-
ices to socially disadvantaged family farmers and ranchers 
in their region. 
Appropriation 
(3) FUNDING.—There are authorized to be appropriated 
authorization. 
$10,000,000 for each fiscal year to carry out this section. 
(b) DESIGNATION OF FSSDERAL PERSONNEL.— 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 4063 
(1) IN GENERAL.—The Secretary shall designate from existing 
Federal personnel resources in the county or region a qualified 
person ^yho shall, in cooperation with the State cooperative 
extension services, implement the policies and programs estab-
lished or modified in accordance with this section. 
(2) ADDITIONAL PERSONNEL.—In counties or regions in which 
the number of socially disadvantaged farmers and ranchers 
exceeds 25 percent of the total number of farmers and ranchers 
in the county or region, the Secretary shall designate additional 
personnel to implement the policies and programs established 
or modified in accordance with this section. 
(c) REPORT TO CONGRESS.— 
(1) IN GENERAL.—Not later than September 30, 1992, and 
every two years thereafter, the Secretary shall report to the 
Committee on Agriculture of the House of Representatives and 
the Committee on Agriculture, Nutrition, and Forestry of the 
Senate, regarding— 
(A) the efforts of the Secretary to enhance participation 
by members of socially disadvantaged groups in agricul-
turgd programs; 
(B) the specific participation goals established for each 
agricultural program; 
(C) the results achieved for each agricultural; and 
(D) the progress of the Department towards meeting each 
of the purposes described in paragraph (2XC). 
(2) CONTENTS.—In addition to the information specified in 
paragraph (1), the report required by paragraph (1) shall in-
clude— 
(A) a comparison of the participation goals and the actual 
participation rates of members of socially disadvantaged 
groups in each agricultural program; 
(B) an analysis and explanation of the reasons for the 
success or failure of the Secretary to achieve the goals, and 
the overall purposes of this section; 
(C) a listing, on a State-by-State and county-by-county 
basis, of— 
(i) the amount of funds loaned to members of socially 
disadvanteiged groups; and 
(ii) the amount of funds used to guarantee loans to 
members of socially disadvantaged groups compared to 
the total amount of such guargmtees; 
(D) a breakdown in allocation of crop base in each pro-
gram crop compared to the target participation rates estab-
lished pursuant to sections 355(aXl) and 355(c) of the 
Consolidated Farm and Rural Development Act (7 U.S.C. 
2003(aXl)), on a State-by-State and county-by-county basis; 
and 
(E) a review and ansilysis of participation by members of 
socially disadvantaged groups, compared to participation by 
all others, in agricultural programs, on a State-by-State and 
county-by-county basis, including a survey representative of 
all farmers and ranchers, including socially disadvantaged 
farmers and ranchers, to identify reasons for participation 
and nonparticipation in agricultural programs. 
(d) AFFIRMATIVE ACTION, APPEALS, AND CONTRACTING REVIEW.— 
(1) PURPOSE.—It is the purpose of this subsection to direct the 
Secretary to analyze within the Department of Agriculture the 
104 STAT. 4064 
PUBLIC LAW 101-624—NOV. 28, 1990 
design and implementation of affirmative action programs and 
policies, the appeals process for complaints of discrimination, 
and contracting and purchasing practices employed by the 
Department. 
(2) SCOPE.—The study shall include— 
(A) an assessment of the successes and failures of these 
affirmative action programs and policies; 
(B) a review of the reasons for the successes and failures 
described in subparagraph (A); 
(C) a review of procurement, contracting, and purchasing 
policies of the Department, the level of participation of 
socially disadvantaged businesses in such activities, and the 
impact of those policies on the participation of members of 
socially disadvantaged groups in such contracting with the 
Department; 
(D) a review of the reasons for participation or lack of 
participation of businesses owned by members of socially 
disadvantaged groups in the activities described in subpara-
graph (C); and 
(E) a review of the appeals process for all complaints or 
allegations regarding acts, practices, or patterns of discrimi-
nation filed with the Department by individuals or any 
other entities that shall include— 
(i) the number of complaints or allegations regarding 
acts, practices, or patterns of discrimination; 
(ii) the manner in which the complaints were inves-
tigated and resolved by the Department; and 
(iii) the longest, shortest, and average periods of time 
taken to investigate and resolve the complaints or 
allegations regarding acts, practices, or patterns of 
discrimination. 
(3) REPORT.—Not later than 1 year after the date of enactment 
of this Act, the Secretary shall prepare and submit to the 
Committee on Agriculture of the House of Representatives and 
the Committee on Agriculture, Nutrition, and Forestry of the 
Senate a report containing the information described in para-
graph (2). 
(e) DEFINITIONS.— 
(1) SOCIALLY DISADVANTAGED GROUP.—As used in this section, 
the term "socially disadvantaged group" means a group whose 
members have been subjected to racial or ethnic prejudice 
because of their identity as members of a group without regard 
to their individual qualities. 
(2) SOCIALLY DISADVANTAGED FARMER OR RANCHER.—As used 
in this section, the term "socially disadvantaged farmer or 
rancher" means a farmer or rancher who is a member of a 
socially disadvantaged group. 
(3) AGRICULTURE PROGRAMS.—As used in this section, the term 
"agriculture programs" are those established or authorized by— 
(A) the Agricultural Act of 1949; 
(B) the Consolidated Farm and Rural Development Act; 
(C) the Agricultural Adjustment Act of 1938; 
(D) the Soil Conservation Act; 
(E) the Domestic Allotment Assistance Act; 
(F) the Food Security Act of 1985; and 
(G) other such Acts as the Secretary deems appropriate. 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 4065 
(f) AMENDMENT TO CONSOLIDATED FARM AND RURAL DEVELOPMENT 
ACT.—Section 355 of the Consolidated Farm and Rural Development 
Act is amended— 
^ USC 2003. 
(1) by striking out subsection (d); 
(2) by redesignating subsection (c) as subsection (d); 
(3) by inserting after subsection 0)) the following new subsec-
tion: 
"(c) OPERATING LOANS.— 
"(1) ESTABLISHMENT.—The Secretary shall establish annual 
target participation rates, that shall ensure that socially dis-
advantaged farmers or ranchers will receive loans made or 
insured under subtitle B. In establishing such target rates, the 
Secretary shall consider the number of socially disadvantaged 
farmers and ranchers in a State in proportion to the total 
number of farmers and ranchers in that State. 
"(2) RESERVATION AND ALLOCATION.—The Secretary shall, to 
the greatest extent practicable, reserve and allocate the propor-
tion of each State's loan funds made available under subtitle B 
that is equal to that State's target participation rate for use by 
the socially disadvantaged farmers or ranchers in that State. 
The Secretary shall, to the extent practicable, distribute the 
total so derived on a county by county basis according to the 
number of socially disadvantaged farmers or ranchers in the 
county. Any funds reserved and allocated for purposes of this 
paragraph, but not used shall be reallocated within such 
State."; and 
(4) by inserting after subsection (d) (as so redesignated) the 
following new subsection: 
"(e) DEFINITIONS.— 
"(1) SOCIALLY DISADVANTAGED GROUP.—As used in this section, 
the term 'socially disadvantaged group' means a group whose 
members have been subjected to racial or ethnic prejudice 
because of their identity as members of a group without regard 
to their individual qualities. 
"(2) SOCIALLY DISADVANTAGED FARMER OR RANCHER.—As used 
in this section, the term 'socially disadvantaged farmer or 
rancher' means a farmer or rancher who is a member of a 
socially disadvantaged group."; 
(g) RESERVATIONS.— 
Indians. 
(1) CoNSOUDATED suBOFFiCE.—The Secretary shall require the 
Agricultural Stabilization and Conservation Service, Soil Con-
servation Service, and Farmers Home Administration offices, 
and such other offices and functions the Secretary may choose 
to include, in each county that has a reservation within its 
borders, to establish a consolidated suboffice at the tribal head-
quarters of said reservation and to staff said suboffice as needed, 
using existing staff, but no less than one day a week or under 
such other arrangement agreed to by the tribe and the Depart-
ment of Agriculture offices. The tribe shall be required to 
provide the necessary office space if it wishes to participate in 
this program. 
(2) COOPERATIVE AGREEMENTS.—For those reservations that 
are located in more than one county, the Secretary, the relevant 
county offices and the tribe shall enter into a cooperative 
agreement to provide the services required by paragraph (1) 
that avoids duplication of effort. 
104 STAT. 4066 
PUBLIC LAW 101-624—NOV. 28, 1990 
SEC. 2502. NARROWING THE DEFENSE EXCEPTION TO THE FARMLAND 
PROTECTION POLICY ACT. 
Section 1547(b) of the Farmland Protection Policy Act (7 U.S.C. 
4208) is amended by inserting "during a national emergency" after 
"purposes". 
SEC. 2503. PROTECTION OF PETS. 
The Animal Welfare Act (7 U.S.C. 2131 et seq.) is amended— 
(1) in section 16(c), (7 U.S.C. 2146) by inserting after "Act" the 
first place it appears the following: "and the regulations and 
standards promulgated under this Act"; and 
(2) by adding at the end the following new section: 
7 use 2158. 
"SEC. 28. PROTECTION OF PETS. 
"(a) HOLDING PERIOD.— 
"(1) REQUIREMENT.—In the case of each dog or cat acquired by 
an entity described in paragraph (2), such entity shall hold and 
care for such dog or cat for a period of not less than five days to 
enable such dog or cat to be recovered by its original owner or 
adopted by other individuals before such entity sells such dog or 
cat to a dealer. 
"(2) ENTITIES DESCRIBED.—An entity subject to paragraph (1) 
is— 
"(A) each State, county, or city owned and operated 
pound or shelter; 
"(B) each private entity established for the purpose of 
caring for animals, such as a humane society, or other 
organization that is under contract with a State, county, or 
city that operates as a pound or shelter and that releases 
animals on a voluntary basis; and 
"(C) each research facility licensed by the Department of 
Agriculture. 
"(b) CERTIFICATION.— 
"(1) IN GENERAL.—A dealer may not sell, provide, or make 
available to any individual or entity a random source dog or cat 
unless such dealer provides the recipient with a valid certifi-
cation that meets the requirements of paragraph (2) and in-
dicates compliance with subsection (a). 
"(2) REQUIREMENTS.—A valid certification shall contain— 
"(A) the name, address, and Department of Agriculture 
license or registration number (if such number exists) of the 
dealer; 
"(B) the name, address, Department of Agriculture li-
cense or registration number (if such number exists), and 
the signature of the recipient of the dog or cat; 
"(C) a description of the dog or cat being provided that 
shall include— 
"(i) the species and breed or t5rpe of such; 
"(ii) the sex of such; 
"(iii) the date of birth (if known) of such; 
"(iv) the color and any distinctive marking of such; 
and 
"(v) any other information that the Secretary by 
regulation shall determine to be appropriate; 
"(D) the name and address of the person, pound, or 
shelter from which the dog or cat was purchased or other-
wise acquired by the dealer, and an assurance that such 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 4067 
person, pound, or shelter was notified that such dog or cat 
may be used for research or educational purposes; 
"(E) the date of the purchase or acquisition referred to in 
subparagraph (D); 
"(F) a statement by the pound or shelter (if the dealer 
acquired the dog or cat from such) that it satisfied the 
requirements of subsection (b); £ind 
"(G) any other information that the Secretary of Agri-
culture by regulation shall determine appropriate. 
"(3) RECORDS.—The original certification required under para-
graph (1) shall accompany the shipment of a dog or cat to be 
sold, provided, or otherwise made available by the dealer, and 
shall be kept and maintained by the research facility for a 
period of at least one year for enforcement purposes. The dealer 
shall retain one copy of the certification provided under this 
paragraph for a period of at least one year for enforcement 
purposes. 
"(4) TRANSFERS.—In instances where one research facility 
transfers animals to another research facility a copy of the 
certificate must accompany such transfer. 
"(5) MODIFICATION.—Certification requirements may be modi-
fied to reflect technological advances in identification tech-
niques, such as microchip technology, if the Secretary deter-
mines that adequate information such as described in this 
section, will be collected, transferred, and maintained through 
such technology. 
"(c) ENFORCEMENT.— 
"(1) IN GENERAL.—Dealers who fail to act according to the 
requirements of this section or who include false information in 
the certification required under subsection (b), shall be subject 
to the penalties provided for under section 19. 
"(2) SUBSEQUENT VIOLATIONS.—Any dealer who violates this 
section more than one time shall be subject to a fine of $5,000 
per dog or cat acquired or sold in violation of this section. 
"(3) PERMANENT REVOCATIONS.—Any dealer who violates this 
section three or more times shall have such dealers license 
permanently revoked. 
"(d) REGULATION.—Not later than 180 days after the date of 
enactment of this section, the Secretary shall promulgate regula-
tions to carry out this section. 
"SEC. 29. AUTHORITY TO APPLY FOR INJUNCTIONS. 
7 USC 2159. 
"(a) REQUEST.—Whenever the Secretary has reason to believe that 
any dealer, carrier, exhibitor, or intermediate handler is dealing in 
stolen animals, or is placing the health of any animal in serious 
danger in violation of this Act or the regulations or standards 
promulgated thereunder, the Secretary shall notify the Attorney 
General, who may apply to the United States district court in which 
such dealer, carrier, exhibitor, or intermediate handler resides or 
conducts business for a temporary restraining order or injunction to 
prevent any such person from operating in violation of this Act or 
the regulations and standards prescribed under this Act. 
"(h) ISSUANCE.—The court shall, upon a proper showing, issue a 
temporary restraining order or injunction under subsection (a) with-
out bond. Such injunction or order shall remain in effect until a 
complaint pursuant to section 19 is issued and dismissed by the 
Secretary or until an order to cease and desist made thereon by the 
104 STAT. 4068 
PUBLIC LAW 101-624—NOV. 28, 1990 
Secretary has become final and effective or is set aside on appellate 
review. Attorneys of the Department of Agriculture may, with the 
approval of the Attorney General, appear in the United States 
district court representing the Secretary in any action brought 
under this section.". 
SEC. 2504. CONTROL AND ERADICATION OF PLANT PESTS. 
Section 102(b) of the Department of Agriculture Organic Act of 
1944 (7 U.S.C. 147a(b)) is amended— 
(1) by striking "all countries of the Western Hemisphere" and 
inserting "foreign countries"; and 
(2) by inserting "foreign or" before "international". 
SEC. 2505. COOPERATION IN ANIMAL DISEASE CONTROL. 
Section 1 of chapter 8, of the Act of February 28, 1947 (21 U.S.C. 
114b) is amended— 
(1) by striking "Mexico, Guatemala, El Salvador, Costa Rica, 
Honduras, Nicaragua, Belize, Panama, Colombia, and Canada, 
the Bahama Islands, the Greater Antilles, and the Lesser Antil-
les" and inserting "foreign countries"; and 
(2) by inserting "foreign or" before "international". 
21 u s e 114i. 
SEC. 2506. PSEUDORABIES ERADICATION. 
(a) 
FINDINGS.—Congress 
finds 
that 
efforts 
to 
eradicate 
pseudorabies in United States swine populations by the Department 
of Agriculture in cooperation with State agencies and the pork 
industry have a high priority and should be continued until 
pseudorabies is completely eradicated in the United States. 
(b) ESTABLISHMENT OF PROGRAM.—The Secretary of Agriculture 
shall establish and carry out a program for the eradication of 
pseudorabies in United States swine populations. 
(c) USE OF FUNDS FOR TESTING AND CONTROL OF PSEUDORABIES.— 
The Secretary shall ensure that not less than 65 percent of the funds 
appropriated for the program established under subsection (b) shall 
be used for testing and screening of animals and for other purposes 
directly related to the eradication or control of pseudorabies. This 
requirement on the use of appropriated funds for this program shall 
not be implemented in a manner that would adversely affect any 
other animal or plant disease or pest eradication or control program. 
(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 
be appropriated for each of the fiscal years 1991 through 1995 such 
sums £is may be necessary for the purpose of carrying out the 
program established under subsection O
t
>
)
. 
SEC. 2507. REGULATION 
GOVERNING 
INSPECTION 
OF 
IMPORTED 
POULTRY. 
(a) FINDINGS.—Congress finds that— 
(1) in 1985 the Poultry Products Inspection Act, an Act to 
maintain the integrity and wholesomeness of this Nation's food 
supply, was amended by the Food Security Act of 1985; 
(2) the 1985 amendment provided that poultry products of-
fered for importation into the United States shall be subject to 
the same inspection, sanitary, quality, species verification, and 
residue standards applied to products produced in the United 
States and that such products shall have been processed in 
facilities and under conditions that are the same as those under 
which similar products are processed in the United States; and 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 4069 
(3) on October 30, 1989, the Secretary of Agriculture, through 
the Food Safety and Inspection Service, the agency in the 
Department of Agriculture charged with the responsibility of 
administering the provisions of the Poultry Products Inspection 
Act, promulgated a regulation implementing the 1985 amend-
ment to that Act providing that a foreign inspection system 
seeking certification for export of poultry to the United States 
merely impose requirements at least equal to those applicable 
in the United States. 
03) SENSE OF CONGRESS.—It is the sense of the Congress that— 
(1) the regulation promulgated by the Secretary of Agri-
culture, through the Food Safety and Inspection Service, with 
respect to poultry products offered for importation into the 
United States does not reflect the intention of the Congress; and 
(2) to urge the Secretary, through the Food Safety and Inspec-
tion Service of the Department of Agriculture, to repeal the 
October 30, 1989, regulation and promulgate a new regulation 
reflecting the intention of the Congress. 
SEC. 2508. ADDITIONAL INSPECTION SERVICES. 
21 USC 136. 
The Secretary of Agriculture, in carrying out regulations prohibit-
ing or restricting the entry of materials that may harbor pests, or 
diseases, is authorized to enter into agreements with operators or 
owners of vessels or aircraft for the purpose of providing inspection 
services at points of entry in the United States in addition to the 
regular or on-call basis currently available in connection with such 
vessels or aircraft. Any such agreement shall provide for the pay-
ment by the operator or owner of an amount determined by the 
Secretary to be necessary to defray the costs of providing additional 
service pursuant to such agreement. 
SEC. 2509. COLLECTION OF FEES FOR INSPECTION SERVICES. 
21 USC 136a. 
(a) QUARANTINE, INSPECTION AND TRANSPORTATION FEES.— 
(1) QUARANTINE AND INSPECTION.—The Secretary of Agri-
culture (hereafter referred to in this section as the "Secretary") 
may prescribe and collect fees to cover the cost of providing 
agricultural quarantine and inspection services in connection 
with the arrival at a port in the customs territory of the United 
States, or the preclearance or preinspection at a site outside the 
customs territory of the United States, of a commercial vessel, 
commercial aircraft, commercial truck, or railroad car, 
(2) TREASURY.—Any person who collects a fee under this 
subsection shall remit such fee to the Treasury of the United 
States prior to the date that is 31 days after the close of the 
calendar quarter in which such fee is collected. 
(3) 
AGRICULTURAL QUARANTINE INSPECTION USER FEE AC-
COUNT.— 
(A) EsTABUSHMENT.—There is established in the Treas-
ury of the United States a no-year fund, to be known as the 
"Agricultural Quarantine Inspection User Fee Account" 
(hereafter referred to in this section as the "Account"), for 
the use of the Secretary for quarantine or inspection serv-
ices under this section. 
(B) AMOUNTS IN ACCOUNT.— 
(i) DEPOSITS.—All of the fees collected under this 
subsection shall be deposited in the Account. 
104 STAT. 4070 
PUBLIC LAW 101-624—NOV. 28, 1990 
(ii) REIMBURSEMENT.—The Secretary of Treasury 
shall use the Account to provide reimbursements to 
any appropriations accounts that incur the costs associ-
ated with the services authorized in paragraph (1). 
(iii) PROCEDURE.—The Secretary of the Treasury shall 
make reimbursement under clause (ii) on a quarterly 
basis. Amounts required to be reimbursed under clause 
(ii), shall be made on the basis of estimates made by the 
Secretary of the expenses described in clause (ii) that 
are incurred by the Secretary in the 3-month period 
immediately preceding such reimbursement. 
(iv) ADJUSTMENTS.—Adjustments of reimbursements 
made under clause (ii) shall be made to the extent 
necessary to correct prior estimates that were in excess 
of, or less than, the amount required to be reimbursed 
under clause (iii). 
(4) ADJUSTMENT IN FEE AMOUNTS.—The Secretary shall adjust 
the amount of the fees to be assessed under this subsection to 
reflect the cost to the Secretary in administering such subsec-
tion, in carrying out the activities at ports in customs territory 
of the United States and preclearance and preinspection sites 
outside the customs territory of the United States in connection 
with the provision of agricultural quarantine inspection serv-
ices, and in maintaining a reasonable balance in the Account. 
(b) PLANT INSPECTION.—Subsection (f) of section 102 of the Act of 
September 21, 1944 (7 U.S.C. 147a(f)), is amended to read as follows: 
Appropriation 
"(f)(1) Notwithstanding paragraph (2), there are authorized to be 
authorization. 
appropriated such sums as may be necessary to carry out the 
provisions of this section. Unless otherwise specifically authorized or 
provided for in appropriations Acts, no part of such sums shall be 
used to pay the cost or value of property injured or destroyed. 
"(2) The Secretary of Agriculture is authorized to prescribe and 
collect fees to recover the costs of providing for the inspection of 
plants and plant products offered for export or transiting the United 
States and certifying to shippers and interested parties as to the 
freedom of such plants and plant products from plant pests accord-
ing to the phytosanitary requirements of the foreign countries to 
which such plants and plant products may be exported, or to the 
freedom from exposure to plant pests while in transit through the 
United States. Any person for whom such an activity is performed 
shall be liable for payment of fees assessed. Upon failure to pay such 
fees when due, the Secretary of Agriculture shall assess a late 
payment penalty, and such overdue fees shall accrue interest, as 
required by section 3717 of title 31, United States Code. All fees, late 
payment penalties, and accrued interest collected shall be credited 
to such accounts that incur the costs and shall remain available 
, 
until expended without fiscal year limitation. The Secretary of 
Agriculture shall have a lien for the fees, any late payment penalty, 
and any accrued interest assessed against the plant or plant product 
for which services have been provided. In the case of any person who 
fails to make payment when due, the Secretary of Agriculture shall 
also have a lien against any plant or plant product thereafter 
attempted to be exported by such person. The Secretary of Agri-
culture may, in case of nonpajonent of the fees, late payment 
penalty, or accrued interest, after giving reasonable notice of default 
to the person liable for payment of such assessments, sell at public 
sale after reasonable public notice, or otherwise dispose of, any such 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 4071 
plant or plant product upon which the Secretary of Agriculture has 
a lien pursuant to this section. If the sale proceeds exceed the fees 
due, any late pajonent penalty assessed, any accrued interest and 
the expenses of the sale, the excess shall be paid, in accordance with 
regulations of the Secretary of Agriculture, to the owner of the plant 
or plant product sold upon the owner making application therefore 
with proof of ownership, within six months after such sale, and 
otherwise the excess shall be credited to accounts that incur the 
costs and shall remain available until expended. The Secretary of 
Agriculture shall, pursuant to regulations as prescribed by the 
Secretary of Agriculture, suspend performance of services to persons 
who have failed to pay such fees, late payment penalty and accrued 
interest.". 
(c) ANIMAL INSPECTION AND VETERINARY DIAGNOSTICS.— 
(1) ANIMAL INSPECTION.—The Secretary may prescribe and 
collect fees to reimburse the Secretary for the cost of carrying 
out the provisions of the Federal Animal Quarantine Laws that 
relate to the importation, entry, and exportation of animals, 
articles, or means of conveyance. 
(2) VETERINARY DIAGNOSTICS.—Section 11 of the Act of May 29, 
1884 (58 Stat. 734, as amended, 21 U.S.C. 114a), is amended by 
inserting immediately following the first sentence: "The Sec-
retary of Agriculture is authorized to prescribe and collect fees 
to recover the costs of carrjdng out the provisions of this section 
which relate to veterinary diagnostics.". 
(3) FEES.—All fees collected pursuant to this subsection and 
any late pajmient penalties or accrued interest collected pursu-
ant to this subsection shall be credited to the accounts that 
incur the cost and shall remain available until expended with-
out fiscal year limitation. 
(4) LIABILITY.—Any person for whom an activity related to the 
importation, entry, or exportation of an animal, article, or 
means of conveyance or relating to veterinary diagnostics, is 
performed pursuant to the section, shall be liable for payment 
of fees assessed. Upon failure to pay such fees when due, the 
Secretary shall assess a late pa5nnent penalty, and such overdue 
fees shall accrue interest, as required by section 3717 of title 31, 
United States Code. All fees, late payment penalties, and ac-
crued interest collected shall be credited to such accounts that 
incur the costs and shall remain available until expended with-
out fiscal year limitation. 
(5) LEINS.— 
(A) IN GENERAL.—The Secretary shall have a lien against 
the animal, article, means of conveyance, or facility for 
which services have been provided under this section for 
the fees, any late pa)anent penalty, and any accrued in-
terest assessed under this subsection. 
(B) OTHER ANIMALS, ETC.—In the case of any person who 
fails to make payment when due under this subsection, the 
Secretary shall have a lien against any animal, article, or 
means of conveyance thereafter imported, moved in inter-
state commerce, or attempted to be exported by the person 
after the date of such failure until the date on which such 
owner or operator make full payment to the Secretary 
under this subsection. 
(C) SALES OF ANIMALS, ETC.— 
104 STAT. 4072 
PUBLIC LAW 101-624—NOV. 28, 1990 
(i) AUTHORITY.—The Secretary may, if a person does 
not pay fees, late payment penalties, or accrued in-
terest on such, after providing reasonable notice of 
default to such person, sell at public sale after reason-
able public notice, or otherwise dispose of, any such 
animal, article, means of conveyance or facility on 
which the Secretary has a lien under this paragraph, 
(ii) EXCESS PROCEEDS.—If the sale proceeds under 
clause (i) exceed the fees due, any late payment penalty 
assessed, any accrued interest on such, and the ex-
penses associated with the sale, such excess shall be 
paid to the owner of the animal, article, means of 
conveyance, or facility if such owner submits an ap-
plication for such excess together with proof of owner-
ship not later than 6 months after the date of such sale. 
If no such application is made, such excess shall be 
credited to accounts that incur the costs associated 
with the fees collected and shall remain available until 
expended, without fiscal year limitation. The Secretary 
shall suspend performance of services to persons who 
have failed to pay fees, late pa3mient penalty, or ac-
crued interest under this section, 
(d) REGULATIONS.—The Secretary may prescribe such regulations 
as the Secretary determines necessary to carry out the provisions of 
this section. 
^ 
(e) RECOVERY OF AMOUNTS OWED.—An action may be brought for 
the recovery of fees, late pa3anent penalties, and accrued interest 
which have not been paid in accordance with this section against 
any person obligated for payment of such assessments under this 
section in any United States district court or other United States 
court for any territory or possession in any jurisdiction in which 
such person is found or resides or transacts business, and such court 
shall have jurisdiction to hear and decide such action. 
(f) DEFINITIONS.— 
(1) ANIMAL QUARANTINE LAWS.—For purposes of this section, 
the term "animal quarantine laws" means— 
(A) section 306 of the Tariff Act of 1930 (19 U.S.C. 1306); 
(B) sections 6 through 10 of the Act of August 30, 1890 (26 
Stat. 416, chapter 839; 21 U.S.C. 101-105); 
(C) section 2 of the Act of February 2, 1903 (32 Stat. 792, 
chapter 349; 21 U.S.C. Ill); 
(D) the Act of May 29, 1884 (23 Stat. 32, chapter 60; 21 
U.S.C. 112 to 114a-l, 115, 117-119, and 130) (commonly 
known as the "Animal Industry Act"); 
(E) the Act of February 28, 1947 (61 Stat. 7, chapter 8; 21 
U.S.C. 114b, 114c, and 114d-l); 
(F) the Act of June 16, 1948 (62 Stat. 458, chapter 477; 21 
U.S.C. 114e and 114f); 
(G) Public Law 87-209 (21 U.S.C. 114g and 114h); 
(H) the Act of May 31, 1920 (41 Stat. 699, chapter 217; 21 
U.S.C. 116); 
(I) the Act of February 2, 1903 (32 Stat. 791, chapter 349; 
21 U.S.C. 112 and 120-122) (commonly known as the "Cattle 
Contagious Diseases Act of 1903"); 
(J) the Act of March 3, 1905 (33 Stat. 1264, chapter 1496; 
21 U.S.C. 123-127) (commonly known as the "Cattle Con-
tagious Diseases Act of 1905"); 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 4073 
(K) the matter under the heading "Bureau of Animal 
Industry" of the Act of June 30, 1914 (38 Stat. 419, chapter 
131; 21 U.S.C. 128); 
(L) section 101 of Public Law 92-73 (21 U.S.C. 129); 
(M) the matter under the heading "Miscellaneous" of the 
Act of May 26, 1910 (36 Stat. 440, chapter 256; 21 U.S.C. 
. 
131); 
(N) sections 1 through 6 and 11 through 13 of Public Law 
87-518 (21 U.S.C. 134-134h); or 
(O) any other Act administered by the Secretary relating 
to plant or animal diseases or pests, other than the first 
section of Public Law 91-239 (21 U.S.C. 135). 
(2) CUSTOMS TERRITORY.—For the purposes of subsection (a), 
the term "customs territory of the United States" means the 50 
States, the District of Columbia, and Puerto Rico. 
(3) PERSON.—For the purposes of this section, the term 
"person" means an individusQ, corporation, partnership, trust, 
association, or any other public or private entity, or any officer, 
employee, or agent thereof. 
(4) UNITED STATES.—For the purposes of subsection O
t
>
)
, the 
term "United States" means the several States of the United 
States, the District of Columbia, Guam, the Commonwealth of 
the Northern Mariana Islands, the Commonwealth of Puerto 
Rico, the Virgin Islands of the United States, and all other 
territories £ind possessions of the United States. 
(5) VESSEL.—For the purposes of subsection (a), the term 
"vessel" does not include any ferry. 
SEC. 2510. USER FEES FOR REPORTS, PUBLICATIONS, AND SOFTWARE. 
Section 1121 of the Agriculture and Food Act of 1981 (7 U.S.C. 
2242a) is amended by adding at the end the following new subsec-
tion: 
"(d) INVESTMENT.—Any fees collected, late pa3anent penalties, and 
interest earned shall be credited to the account referred to in this 
section and may be invested by the Secretary of Agriculture in 
insured or fuUy-coUateralized interest-bearing accounts or, at the 
discretion of the Secretary of Agriculture, by the Secretary of the 
Treasury in United States Government debt instruments. Fees and 
charges, including late payment penalties and interest earned from 
the investment of such funds shall be credited to such account.". 
SEC. 2511. TOBACCO ADJUSTMENT ACT OF 1983. 
Section 213(d) of the Tobacco Adjustment Act of 1983 (7 U.S.C. 
51 Ir) is amended by adding at the end the following new sentences: 
"Any fees collected, late pajnnent penalties, and interest earned 
shall be credited to the account referred to in this section and may 
be invested by the Secretary of Agriculture in insured or fuUy-
coUateralized interest-bearing accounts or, at the discretion of the 
Secretary of Agriculture, by the Secretary of the Treasury in United 
States Government debt instruments. Fees and charges, including 
late pajrment penalties, and interest earned from the investment of 
such funds shall be credited to the account referred to in this 
section.". 
SEC. 2512. COSTS OF PRODUCTION. 
7 USC 1421b. 
(a) IMPROVING THE ACCURACY OF COMMODITY PROGRAM BUDGET 
FORECASTS.—Congress finds that, to improve the accuracy of 
104 STAT. 4074 
PUBLIC LAW 101-624—NOV. 28, 1990 
Reports. 
7 u s e 1421c. 
7 u s e 1421d. 
commodity program benefit forecasts, the Secretary of Agriculture 
should designate a single organization to manage its commodity 
program forecasting and establish a quality control program to— 
(1) systematically identify the source of forecasting errors; 
(2) maintain records of data used for supply and demand 
forecasts; 
(3) document its forecasting methods; and 
(4) correct weaknesses in its various forecasting components. 
(b) RETURN ON ASSETS.—The Secretary of Agriculture shall an-
nually publish a report analyzing the return on assets resulting 
from the production of upland cotton, rice, wheat, corn, oats, barley, 
grain sorghum, soybeans, peanuts, sugar from sugar beets, and raw 
sugar from sugar cane. In conducting this analysis, the Secretary 
shall consider returns from agricultural price support programs, the 
effects of agricultural price support programs on cost of production, 
the factors currently used in Department of Agriculture cost of 
production data, current value of land, and any other information 
that he considers necessary to reflect accurately return on the 
production of such crops. 
SEC. 2513. FARM VALUE OF AGRICULTURAL PRODUCTS. 
(a) IN GENERAL.—The Secretary of Agriculture (hereafter in this 
section referred to as the "Secretary") shall develop a system for 
informing the ultimate consumer of the approximate amount of 
money (in terms of United States currency) paid the agricultural 
producer for each primary commodity, contained in retail products. 
For the purposes of this subsection, the term "primary commodity" 
means any of 135 United States agricultural commodities the Sec-
retary determines are of dietary significance (including all of the 
commodities for which Federal agricultural programs exist under 
the Agricultural Act of 1949). 
(b) ANNUAL REPORT BY SECRETARY.—The Secretary shall annually 
submit to the Committee on Agriculture of the House of Representa-
tives and the Committee on Agriculture, Nutrition, and Forestry of 
the Senate, by type of commodity or product, a report containing the 
information required to be made available to the consumer under 
subsection (a). In developing such report, the Secretary may seek 
assistance from such persons as the Secretary deems appropriate. 
SEC. 2514. COMMODITY REPORTS. 
(a) CROP REPORTS.—The Secretary of Agriculture (hereafter in this 
section referred to as the "Secretary") shall gather data from 
producers to be used to develop crop reports to be distributed by the 
Secretary during the growing season. The report shall contain 
statements of the conditions of those crops by State, with such 
explanations, comparisons, and information as may be useful for 
illustrating such reports. 
(b) SPECIAL REPORTS.— 
(1) IN GENERAL.—In addition to the reports compiled pursuant 
to subsection (a), the Secretary shall annually survey producers 
for information for reports regarding supply, acreage, produc-
tion, disposition, and prices for the following commodities as 
determined by the Secretary: 
(A) 25 fresh market vegetables; 
(B) 3 processing vegetables; 
(C) 6 fruits and nuts; 
(D) 17 forage and turf seeds; 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 4075 
(E) 50 vegetable seeds; and 
(F) maple syrup. 
(2) ADMINISTRATIVE.—The Secretary shall annually prepare a 
report containing results of the surveys described in paragraph 
(1) in such States as determined by the Secretary. Such reports 
shall be submitted to and officially approved by the Secretary of 
Agriculture before being issued or published. 
(c) TREE INVENTORIES.—The Secretary shall survey producers for 
information for reports regarding fruit and nut tree inventories. 
Such surveys and reports shall be conducted, printed, and distrib-
uted on a regular basis every 3 to 5 years as determined by the 
Secretary. Reports shall be submitted to and officially approved by 
the Secretary before being issued or published. 
(d) CONFORMING AMENDMENTS.—The proviso under the heading 
"Bureau of Crop Estimates" in the Act of March 4, 1917 (ch. 179; 39 
Stat. 1157) and the first proviso under the heading of the "Bureau of 
Statistics" in the Act of March 4, 1909 (ch. 301; 35 Stat. 1053) (7 
U.S.C. 411a) are repealed. 
(e) AUTHORIZATION.—There are authorized to be appropriated such 
sums as may be necessary to carry out this section. 
SEC. 2515. SCARCE FEDERAL RESOURCES. 
7 USC 1421 note 
Notwithstanding any other provision of this Act, to conserve 
scarce Federal resources, the Secretary of Agriculture may after 
concurrence with the Chairman and Ranking Member of the 
Committee on Agriculture, Nutrition, and Forestry of the Senate 
and the Chairman and Ranking Member of the Committee on 
Agriculture of the House of Representatives, rank by priority the 
studies or reports authorized by this Act and determine which of 
those studies or reports shall be completed. The Secretary shall Reports. 
complete at least 12 such studies or reports. 
SEC. 2516. RECORDKEEPING IMPROVEMENT. 
(a) SHORT TITLE.—This section may be cited as the "Agricultural 
Program Reporting and Recordkeeping Improvement Act of 1990". 
O
b
) GOAL.—To the extent practicable, it shall be the goal of this 
section to bring about, within 3 years following the date of enact-
ment of this Act, a substantial reduction in the volume of docu-
mentation, and in the amount of time devoted and the number of 
visits to Department of Agriculture offices, that are necessary to 
complete paperwork required of the typical producer participating 
in programs administered by the Secretary of Agriculture. 
(c) REPORTED.—Not later than 240 days after the date of enact-
ment of this Act, the Secretary of Agriculture (hereafter referred to 
in this section as the "Secretary") shall prepare and submit to the 
Committee on Agriculture of the House of Representatives and the 
Committee on Agriculture, Nutrition, and Forestry of the Senate a 
report containing specific proposals for reducing and simplifjdng the 
recordkeeping and other paperwork required of agricultural produc-
ers and cooperatives (hereinafter referred to in this section as 
"producers") who apply for participation in, or in complying with 
the requirements o
f
— 
(1) agricultural price and income support programs adminis-
tered by the Secretary, including programs under the Agricul-
tural Act of 1949 (7 U.S.C. 1421, et seq.); 
Agricultural 
Program 
Reporting and 
Recordkeeping 
Improvement 
Act of 1990. 
7 USC 1421 note. 
104 STAT. 4076 
PUBLIC LAW 101-624—NOV. 28, 1990 
(2) voluntary or mandatory soil or water conservation pro-
grams administered by the Secretary, including programs under 
the Food Security Act of 1985 (7 U.S.C. 1281, note, et seq.); and 
(3) any other related programs administered by the Secretary, 
including programs under the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1981, et. seq.) and programs of crop 
insurance under the Federal Crop Insurance Corporation. 
(d) CONTENTS OF REPORT.— 
(1) IN GENERAL.—In the report required by subsection (c), the 
Secretary shall set forth the results of a thorough examination 
of the feasibility of reducing current levels of paperwork and 
recordkeeping required of producers by providing such produc-
ers with access to a computerized departmental network or 
system (including the utilization of computer capability and 
equipment which has been or will be acquired by the Depart-
ment of Agriculture) that could be used by producers to— 
(A) communicate by voice, data, video, or a combination 
thereof for the purpose of submitting electronically all of, 
or a significant portion of, any necessary and appropriate 
applications, reports, or other documentation; and 
(B) provide updated electronic information and data perti-
nent to the producer's agricultural operation and market-
ing activities, or information sharing by means of video 
conferencing. 
For the purpose of preparing the report required by this subsec-
tion, the Secretary is authorized to retain the consulting service 
of at least one private sector business firm having experience 
and possessing technical expertise in the fields of wide area 
computer network design, function, installation, and mainte-
nance, integrated video conferencing, and data base manage-
ment systems. 
(2) SCHEDULE OF FEES.—In determining the feasibility and 
costs of providing a computerized network or system as de-
scribed in paragraph (1), the Secretary may recommend a sched-
ule of nominal fees which could be charged to producers and 
others for a pro rata share of a portion of the costs associated 
with the producers' access to and use of such system. Such fees 
would partially or entirely defray the costs (after taking into 
consideration any ongoing savings to the Department of Agri-
culture) associated with the operation and maintenance and 
future expansion of such portion of the network or system and 
its capabilities, but shall not be applied in a manner that would 
include any reimbursement for existing equipment and capabili-
ties or for the costs associated with the initial establishment of 
the network or system. The report should also contain rec-
ommendations outlining additional categories of users who 
might be permitted access to the network or system for a fee, 
and the types of safeguards which would be reasonably nec-
essary to limit file access as may be necessitated in accordance 
with provisions of the Privacy Act of 1974 (5 U.S.C. 552a) and 
other relevant authorities governing the disclosure of individual 
or proprietary information. 
(e) RECOMMENDATIONS OF NATIONAL COMMISSION.— 
(1) GENERALLY.—To the maximum extent practicable, in 
preparing the report required by subsection (c), the Secretary 
shall take into consideration and incorporate the recommenda-
tions of the commission created by title V, section 501 of the 
PUBLIC LAW 101-624—NOV. 28, 1990 
104 STAT. 4077 
Farm Credit Amendments Act of 1985 as contained in the 
Report of the National Commission on Agricultural Finance, 
dated February 22, 1989, to the extent that such recommenda-
tions relate to the need to develop a universal loan application 
form and uniform accounting standards for farm businesses. In 
considering such recommendations, the Secretary shall attempt 
to design and adopt forms and standards that are as brief and 
succinct as possible, and shall consult with representatives of 
the Farm Credit System, the commercial banking system, and 
other significant providers of farm ownership and operating 
credit. 
(2) PAPERWORK REDUCTION.—In order to increase the effi-
ciency of agricultural programs administered by the Secretary 
and to reduce the burden of paperwork on participants in such 
programs, the Secretary shall design and adopt, to the maxi-
mum extent practicable, one brief application form to be used 
by applicants for participation in the agricultural programs 
administered by the Secretary, including, the programs de-
scribed in subsection (c). The report required by subsection (c) 
shall include information with regard to the progress made by 
the Department toward compliance with this subsection, and 
shall also identify any statutory impediments to the use of such 
single brief form, 
(f) INTEGRATION OF DATA BASES.—Notwithstanding any other 
provisions of this section, the Secretary of Agriculture shall take 
appropriate action to integrate the various data bases of the Depart-
ment of Agriculture relating to agricultural program data, and shall 
facilitate the sharing of relevant data among the various agencies of 
the Department of Agriculture. 
SEC. 2517. STUDY OF THE TRANSPORTATION OF FERTILIZER AND AGRI-
CULTURAL CHEMICALS TO FARMERS. 
(a) STUDY.—The Secretary of Agriculture shall conduct a study 
regarding the transportation of fertilizer, agricultural pesticides, 
and agricultural use hazardous materials such as fuel to the farm. 
Such study shall include a review and analysis o
f
— 
(1) the transportation of fertilizer, fuels (such as liquid pro-
pane gas, diesel, gasoline heating oil, methane, and others), and 
agricultural pesticides to farms by farmers, hired farm labor, 
and agribusiness, including— 
(A) safety practices used, the type of the equipment used, 
roads traveled, and employees engaged in such transpor-
tation; and 
(B) any significant distinctions between transportation by 
retail dealers and transportation by farmers; 
(2) Federal and State requirements imposed on the transpor-
tation of fertilizer, fuels, and agricultural pesticides by farmers, 
hired farm labor, and agribusiness retail dealers to farms (and 
exemptions, exclusions or waivers authorized under such 
requirements), including— 
(A) commercial driver's license requirements; 
(B) driver qualification requirements; 
(C) alcohol and drug testing requirements; and 
(D) worker safety requirements; 
(3) the compliance by farmers and retail dealers and their 
employees with such Federal and State requirements and the 
costs associated with compliance; 
104 STAT. 4078 
PUBLIC LAW 101-624—NOV. 28, 1990 
(4) the safety history associated with the transport of fer-
tilizers, fuel, and pesticides by farmers and retail dealers and 
their employees; and 
(5) the impact on rural communities, employment, and the 
cost and availability of fertilizer, fuel, and agricultural pes-
ticides associated with complying with such Federal and State 
requirements. 
(b) REPORT.—Not later than 18 months after the date of the 
enactment of this Act, the Secretary of Agriculture shall publish a 
report of such study and analyses (including comments on the 
adequacy of existing Federal and State requirements or exemptions) 
and submit the report to the appropriate committees of Congress. 
(c) AUTHORIZATION OF APPROPRIATIONS.—For the purpose of fulfill-
ing the study, analyses, and reporting requirements under this 
section, there is authorized to be appropriated not more than 
$75,000. 
15 u s e 714. 
SEC. 2518. ESTABLISHING QUALITY AS A GOAL FOR COMMODITY CREDIT 
CORPORATION PROGRAMS. 
In canying out its activities the Commodity Credit Corporation 
shall, to the extent practicable, provide for progrsun provisions that 
promote quality in the production and marketing of crops and 
livestock in the United States. 
7 u s e 1421 note. 
SEC. 2519. SEVERABILITY. 
If any provision of this Act or the application thereof to any 
person or circumstance is held invalid, the invalidity shall not affect 
other provisions or applications of this Act which can be given effect 
without regard to the invalid provision or application, and to this 
end the provisions of this Act are severable. 
Approved November 28, 1990. 
LEGISLATIVE HISTORY—S. 2830 (H.R. 3581) (H.R. 3950) (H.R. 4077): 
HOUSE REPORTS: No. 101-413 accompanying H.R. 4077 and No. 101-415 
accompanying H.R. 3581 both from (Comm. on Agriculture); No. 
101-569, Pt. 1 (Coram, on Agriculture), Pt. 2 (Comm. on Foreign 
Affairs), Pt. 3 (Comm. on Agriculture), Pt. 4 (Coram, on Education 
and Labor), and Pt. 5 (Corara. on Ways and Means), all 
accompanying H.R. 3950; and No. 101-916 (Coram, of 
Conference). 
SENATE REPORTS: No. 101-357 (Corara. on Agriculture, Nutrition, and Forestry). 
CONGRESSIONAL RECORD, Vol. 136 (1990): 
Mar. 6, H.R. 4077 considered and passed House. 
Mar. 14, 15, 22, H.R. 3581 considered and passed House. 
July 19, 20, 23-27, S. 2830 considered and passed Senate. 
July 23-25, 27, Aug. 1, H.R. 3950 considered and passed House. 
Aug. 3, S. 2830 considered and passed House, araended, in lieu of H.R. 3581, 
H.R. 3950, and H.R. 4077. 
Oct. 23, House agreed to conference report. 
Oct. 25, Senate agreed to conference report. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 26 (1990): 
Nov. 28, Presidential reraarks and stateraent.