Agricultural Risk Protection Act of 2000
PL 106-224 (H.R.2559), enacted 06/22/2000

114 STAT. 358 
PUBLIC LAW 106-224r-^JUNE 20, 2000 
Public Law 106-224 
106th Congress 
An Act 
To amend the Federal Crop Insurance Act to strengthen the safety net for agricul-
June 20, 2000 
tural producers by providing greater access to more affordable risk management 
[HR 2559] 
tools and improved protection from production and income loss, to improve the 
efficiency and integrity of the Federal crop insurance program. 
Be it enacted 
by the Senate 
and House 
of Representatives 
of 
Agricultural Risk 
the United States of America 
in Congress 
assembled, 
Protection Act of 
2000. 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
7 use 1501 note. 
(a) SHORT TiTLE.—This Act may be cited as the "Agricultural 
Risk Protection Act of 2000". 
(b) TABLE OF CONTENTS.—The table of contents of this Act 
is as follows: 
TITLE I—CROP INSURANCE COVERAGE 
SUBTITLE A—CROP INSURANCE COVERAGE 
Sec. 101. Premium schedule for additional coverage. 
Sec. 102. Premium schedule for other plans of insurance. 
Sec. 103. Catastrophic risk protection. 
Sec. 104. Administrative fee for additional coverage. 
Sec. 105. A s s ^ e d yields and actual production history adjustments. 
Sec. 106. Review and adjustment in rating methodologies. 
Sec. 107. Quality adjustment. 
Sec. 108. Double insurance and prevented planting. 
Sec. 109. Noninsured crop disaster assistance program. 
SUBTITLE B—IMPROVING PROGRAM INTEGRITY 
Sec. 121. Improving program compliance and integrity. 
Sec. 122. Protection of confidential information. 
Sec. 123. Good farming practices. 
Sec. 124. Records and reporting. 
SUBTITLE C—RESEARCH AND PILOT PROGRAMS 
Sec. 131. Research and development. 
Sec. 132. Pilot programs. 
Sec. 133. Education and risk management assistance. 
Sec. 134. Options pilot program. 
SUBTITLE I>—ADMINISTRATION 
Sec. 141. Relation to other laws. 
Sec. 142. Management of Corporation. 
Sec. 143. Contracting for rating of plans of insurance. 
Sec. 144. Electronic availability of crop insurance information. 
Sec. 145. Adequate coverage for States. 
Sec. 146. Submission of policies and materials to Board. 
Sec. 147. Funding. 
Sec. 148. Standard Reinsurance Agreement. 
' 
SUBTITLE E—^MISCELLANEOUS 
Sec. 161. Limitation on revenue coverage for potatoes. 
Sec. 162. Crop insurance coverage for cotton and rice. 
PUBLIC LAW 106-224-^UNE 20, 2000 
114 STAT. 359 
Sec. 163. Indemnity payments for certain producers. 
Sec. 164. Sense of the Congress regarding the Federal crojp insurance program. 
Sec. 165. Sense of the Congress on rural America, including minority and limited-
resource farmers. 
SUBTITLE F—EFFECTIVE DATES AND IMPLEMENTATION 
Sec. 171. Effective dates. 
Sec. 172. Regulations. 
Sec. 173. Savings clause. 
TITLE II—AGRICULTURAL ASSISTANCE 
SUBTITLE A—MARKET LOSS ASSISTANCE 
Sec. 201. Market loss assistance. 
Sec. 202. Oilseeds. 
Sec. 203. Specialty crops. 
Sec. 204. Other commodities. 
Sec. 205. Payments in lieu of loan deficiency payments. 
Sec. 206. Expansion of producers eligible for loan deficiency payments. 
SUBTITLE B—CONSERVATION 
Sec. 211. Conservation assistance. 
Sec. 212. Condition on development of Little Darby National Wildlife Refuge, Ohio. 
SUBTITLE C—^RESEARCH 
Sec. 221. Carbon cycle research. 
Sec. 222. Tobacco research for medicinal purposes. 
Sec. 223. Research on soil science and forest health management. 
Sec. 224. Research on waste streams from livestock production. 
Sec. 225. Improved storage and management of livestock and poultry waste. 
Sec. 226. Ethanol research pilot plant. 
Sec. 227. Bioinformatics Institute for Model Plant Species. 
SUBTITLE D—AGRICULTURAL MARKETING 
Sec. 231. Value-added agricultural product market development grants. 
SUBTITLE E—NUTRITION PROGRAMS 
Sec. 241. Calculation of minimum amount of commodities for school lunch require-
ments. 
Sec. 242. School lunch data. 
Sec. 243. Child and adult care food program integrity. 
Sec. 244. Adjustments to WIC program. 
SUBTITLE F—OTHER PROGRAMS 
Sec. 251. Authority to provide loan in connection with boll weevil eradication. 
Sec. 252. Animal disease control. 
Sec. 253. Emergency lo£ins for seed producers. 
Sec. 254. Temporary suspension of authority to combine certain offices. 
Sec. 255. Farm operating loan eligibility. 
Sec. 256. Water systems for rural and Native villages in Alaska. 
Sec. 257. Crop and pasture flood compensation program. 
Sec. 258. Flood mitigation near Pierre, South Dakota. 
Sec. 259. Restoration of eligibility for crop loss assistance. 
SUBTITLE 
G—ADMINISTRATION 
Sec. 261. Funding. 
Sec. 262. Obligation period. 
Sec. 263. Regulations. 
Sec. 264. Paygo adjustment. 
Sec. 265. Commodity Credit Corporation reimbursement. 
TITLE III—BIOMASS RESEARCH AND DEVELOPMENT ACT OF 2000 
Sec. 301. Short title. 
Sec. 302. Findings. 
Sec. 303. Definitions. 
Sec. 304. Cooperation and coordination in biomass research and development. 
Sec. 305. Biomass Research and Development Board. 
Sec. 306. Biomass Research and Development Technical Advisory Committee. 
Sec. 307. Biomass Research And Development Initiative. 
Sec. 308. Administrative support and funds. 
114 STAT. 360 
PUBLIC LAW 106-224-^JUNE 20, 2000 
Sec. 309. Reports. 
Sec. 310. Termination of authority. 
TITLE IV—PLANT PROTECTION ACT 
Sec. 401. Short title. 
Sec. 402. Findings. 
Sec. 403. Definitions. 
SUBTITLE A—PLANT PROTECTION 
Sec. 411. Regulation of movement of plant pests. 
Sec. 412. Regulation of movement of plants, plant products, biological control 
organisms, noxious weeds, articles, and means of conveyance. 
Sec. 413. Notification and holding requirements upon arrival. 
Sec. 414. General remedial measures for new plant pests and noxious weeds. 
Sec. 415. Declaration of extraordinary emergency and resulting authorities. 
Sec. 416. Recovery of compensation for unauthorized activities. 
Sec. 417. Control of grasshoppers and mormon crickets. 
Sec. 418. Certification for e:q)orts. 
SUBTITLE B—INSPECTION AND ENFORCEMENT 
Sec. 421. Inspections, seizures, and warrants. 
Sec. 422. Collection of information. 
Sec. 423. Subpoena authority. 
Sec. 424. Penalties for violation. 
Sec. 425. Enforcement actions of Attorney General. 
Sec. 426. Court jurisdiction. 
SUBTITLE C—MISCELLANEOUS PROVISIONS 
Sec. 431. Cooperation. 
Sec. 432. Buildings, land, people, claims, and agreements. 
Sec. 433. Reimbursable agreements. 
Sec. 434. Regulations and orders. 
Sec. 435. Protection for mail handlers. 
Sec. 436. Preemption. 
Sec. 437. Severability. 
Sec. 438. Repeal of superseded laws. 
SUBTITLE D—AUTHORIZATION OF APPROPRIATIONS 
Sec. 441. Authorization of appropriations. 
Sec. 442. Transfer authority. 
TITLE V—INSPECTION ANIMALS 
Sec. 501. Civil penalty. 
Sec. 502. Subpoena authority. 
TITLE I—CROP INSURANCE 
Subtitle A—Crop Insurance Coverage 
SEC. 
1
0
1
. 
PREMIUM SCHEDULE 
FOR 
ADDITIONAL COVERAGE. 
(a) EXPECTED MARKET PRICE.—Section 508(c) of the Federal 
Crop InsiiTEuice Act (7 U.S.C. 1508(c)) is amended by striking para-
graph (5) and inserting the following: 
"(5) EXPECTED MARKET PRICE.— 
"(A) ESTABLISHMENT OR APPROVAL.—For the purposes 
of this title, the Corporation shall estabUsh or approve 
the price level (referred to in this title as the 'expected 
market price') of each agricultural commodity for which 
insurance is offered. 
"(B) GENERAL RULE.—Except as otherwise provided in 
subparagraph (C), the expected market price of an agricul-
tural commodity shall be not less than the projected market 
price of the agricultural commodity, as determined by the 
Corporation. 
PUBLIC LAW 1 0 6 - 2 2 4 - J U N E 20, 2000 
114 STAT. 361 
"(C) 
OTHER AUTHORIZED APPROACHES.—The expected 
market price of an agricultural commodity— 
"(i) may be based on the actual market price of 
the agricultural commodity at the time of harvest, 
as determined by the Corporation; 
"(ii) in the case of revenue and other similar plans 
of insurance, may be the actual market price of the 
agricultural commodity, as determined by the Corpora-
tion; 
"(iii) in the case of cost of production or similar 
plans of insurance, shall be the projected cost of pro-
ducing the agricultiu-al commodity, as determined by 
the Corporation; or 
"(iv) in the case of other plans of insurance, may 
be an appropriate amount, as determined by the Cor-
poration.". 
(b) PREMIUM AMOUNTS.—Section 508(d) of the Federal Crop 
Insurance Act (7 U.S.C. 1508(d)) is amended— 
(1) in paragraph (2), by striking subparagraphs (B) and 
(C) and inserting the following: 
"(B) In the case of additional coverage equal to or 
greater than 50 percent of the recorded or appraised aver-
age yield indemnified at not greater than 100 percent of 
the expected market price, or a comparable coverage for 
a policy or plan of insurance that is not based on individual 
yield, the amount of the premium shall— 
"(i) be sufficient to cover anticipated losses and 
a reasonable reserve; and 
"(ii) include an amount for operating and adminis-
trative expenses, as determined by the Corporation, 
on an industry-wide basis as a percentage of the 
amount of the premium used to define loss ratio."; 
and 
(2) by adding at the end the following: 
"(3) PERFORMANCE-BASED DISCOUNT.—The Corporation may 
provide a performance-based premium discount for a producer 
of an agricultural commodity who has good insurance or produc-
tion experience relative to other producers of that agricultural 
commodity in the same area, as determined by the Corpora-
tion.". 
(c) PAYMENT SCHEDULE.—Section 508(e)(2) of the Federal Crop 
Insurance Act (7 U.S.C. 1508(e)(2)) is amended— 
(1) in the matter preceding the subparagraphs, by striking 
"The amount" and inserting "Subject to paragraph (4), the 
amount"; and 
(2) by striking subparagraphs (B) and (C) and inserting 
the following: 
"(B) In the case of additional coverage equal to or 
greater than 50 percent, but less than 55 percent, of the 
recorded or appraised average yield indemnified at not 
greater than 100 percent of the expected market price, 
or a comparable coverage for a policy or plan of insursuice 
that is not based on individued yield, the amoiint shall 
be equal to the sum o
f
— 
"(i) 67 percent of the amount of the premium estab-
lished under subsection (d)(2)(B)(i) for the coverage 
level selected; and 
114 STAT. 362 
PUBLIC LAW 106-224-^UNE 20, 2000 
"(ii) the amount determined under subsection 
(d)(2)(B)(ii) for the coverage level selected to cover oper-
ating and administrative expenses. 
"(C) In the case of additional coverage equal to or 
greater than 55 percent, but less than 65 percent, of the 
recorded or appraised average yield indemnified at not 
greater than 100 percent of the expected mgirket price, 
or a comparable coverage for a policy or plan of insurance 
that is not based on individual yield, the amount shall 
be equal to the sum of— 
"(i) 64 percent of the amount of the premium estab-
lished under subsection (d)(2)(B)(i) for the coverage 
level selected; and 
"(ii) the amount determined under subsection 
(d)(2)(B)(ii) for the coverage level selected to cover oper-
ating and administrative expenses. 
"(D) In the case of additional coverage equal to or 
greater than 65 percent, but less than 75 percent, of the 
recorded or appraised average )deld indemnified at not 
greater than 100 percent of the expected market price, 
or a comparable coverage for a policy or plan of insurance 
that is not based on individusJ yield, the amount shall 
be equal to the sum o
f
— 
"(i) 59 percent of the amount of the premium estab-
lished under subsection (d)(2)(B)(i) for the coverage 
level selected; and 
"(ii) the amount determined under subsection 
(d)(2)(B)(ii) for the coverage level selected to cover oper-
ating and administrative expenses. 
"(E) In the case of additional coverage equal to or 
greater than 75 percent, but less than 80 percent, of the 
recorded or appraised average yield indemnified at not 
greater than 100 percent of the expected market price, 
or a comparable coverage for a policy or plan of insurance 
that is not based on individusd yield, the amount shall 
be equal to the sum o
f
— 
"(i) 55 percent of the amount of the premium estab-
lished under subsection (d)(2)(B)(i) for the coverage 
level selected; and 
"(ii) the eimount determined under subsection 
(d)(2)(B)(ii) for the coverage level selected to cover oper-
ating and administrative expenses. 
"(F) In the case of additional coverage equal to or 
greater than 80 percent, but less than 85 percent, of the 
recorded or appraised average yield indemnified at not 
greater than 100 percent of the expected market price, 
or a comparable coverage for a policy or plan of insurance 
that is not based on individu^ yield, the amount shall 
be equal to the stun o
f
— 
"(i) 48 percent of the amount of the premium estab-
lished under subsection (d)(2)(B)(i) for the coverage 
level selected; and 
"(ii) the amount determined under subsection 
(d)(2)(B)(ii) for the coverage level selected to cover oper-
ating and administrative expenses. 
"(G) Subject to subsection (c)(4), in the case of addi-
tional coverage equal to or greater than 85 percent of 
PUBLIC LAW 106-224-JUNE 20, 2000 
114 STAT. 363 
the recorded or appraised average )deld indemnified at 
not greater than 100 percent of the expected market price, 
or a comparable coverage for a poHcy or plan of insurance 
that is not based on individual yield, the amount shall 
be equal to the sum o
f
— 
"(i) 38 percent of the amount of the premium estab-
lished under subsection (d)(2)(B)(i) for the coverage 
level selected; and 
"(ii) the amount determined under subsection 
(d)(2)(B)(ii) for the coverage level selected to cover oper-
ating and administrative expenses.". 
(d) TEMPORARY PROHIBITION ON CONTINUOUS COVERAGE.—Sec-
tion 508(e) of the Federal Crop Insurance Act (7 U.S.C. 1508(e)) 
is amended by striking paragraph (4) and inserting the following: 
"(4) TEMPORARY PROHIBITION ON CONTINUOUS COVERAGE.— 
Notwithstanding paragraph (2), during each of the 2001 
through 2005 reinsurance years, additional coverage under sub-
section (c) shall be available only in 5 percent increments 
beginning at 50 percent of the recorded or appraised average 
yield.". 
(e) PREMIUM PAYMENT DISCLOSURE.—Section 508(e) of the Fed-
eral Crop Insurance Act (7 U.S.C. 1508(e)) is amended by adding 
at the end the following: 
"(5) PREMIUM PAYMENT DISCLOSURE.—Each policy or plan 
of insurance under this title shall prominently indicate the 
dollar amount of the portion of the premium paid by the Cor-
poration.". 
(f) CONFORMING AMENDMENT.—Section 508(g)(2)(D) of the Fed-
eral Crop Insurance Act (7 U.S.C. 1508(g)(2)(D)) is amended by 
striking "(as provided in subsection (e)(4))". 
SEC. 102. PREMIUM SCHEDULE FOR OTHER PLANS OF INSURANCE. 
(a) PREMIUM SCHEDULE.—Section 508(h) of the Federal Crop 
Insurance Act (7 U.S.C. 1508(h)) is amended— 
(1) in paragraph (2), by striking the second sentence; and 
(2) by striking paragraph (5) and inserting the following: 
"(5) PREMIUM SCHEDULE.— 
"(A) PAYMENT BY CORPORATION.—In the case of a policy 
or plan of insurance developed and approved under this 
subsection or section 522, or conducted under section 523 
(other than a policy or plan of insurance applicable to 
livestock), the Corporation shall pay a portion of the pre-
mium of the policy or plan of insurance that is equal 
to— 
"(i) the percentage, specified in subsection (e) for 
a similar level of coverage, of the total amount of 
the premium used to define loss ratio; and 
"(ii) an amount for administrative and operating 
expenses determined in accordance with subsection 
(k)(4). 
"(B) TRANSITIONAL SCHEDULE.—Effective only during 
the 2001 reinsurance year, in the case of a policy or plan 
of insurance developed and approved under this subsection 
or section 522, or conducted under section 523 (other than 
a policy or plan of insurance applicable to livestock), and 
first approved by the Board after the date of the enactment 
of this subparagraph, the payment by the Corporation of 
114 STAT. 364 
PUBLIC LAW 106-224-JUNE 20, 2000 
a portion of the premium of the poUcy may not exceed 
the dollar amount that would otherwise be authorized 
under subsection (e) (consistent with subsection (c)(5), as 
in effect on the day before the date of the enactment 
of this subparagraph).", 
(b) REIMBURSEMENT RATE.—Section 508(k)(4) of the Federal 
Crop Insurance Act (7 U.S.C. 1508(k)(4)) is amended by adding 
at the end the following: 
"(C) OTHER REDUCTIONS.—Beginning with the 2002 
reinsurance ye£ir, in the case of a policy or plan of insurance 
approved by the Board that was not reinsured during the 
1998 reinsurance year but, had it been reinsured, would 
have received a reduced rate of reimbursement during the 
1998 reinsurance year, the rate of reimbursement for 
administrative Eind operating costs established for the 
policy or plan of insurance shaJl take into account the 
factors used to determine the rate of reimbursement for 
administrative and operating costs during the 1998 reinsur-
ance year, including the expected difference in premium 
and actual administrative and operating costs of the policy 
or plan of insurance relative to an individual 5deld policy 
or plan of insurance and other appropriate factors, as deter-
mined by the Corporation.". 
SEC. 103. CATASTROPHIC RISK PROTECTION. 
(a) ALTERNATIVE COVERAGE.—Section 508(b) of the Federal 
Crop InsurEince Act (7 U.S.C. 1508(b)) is amended by striking para-
graph (3) and inserting the following: 
"(3) 
ALTERNATIVE 
CATASTROPHIC COVERAGE.—Beginning 
with the 2001 crop year, the Corporation shall offer producers 
of an agriculturgJ commodity the option of selecting either 
of the following: 
"(A) Tlie catastrophic risk protection coverage available 
under paragraph (2)(A). 
"(B) An gdtemative catastrophic risk protection cov-
erage that— 
"(i) indemnifies the producer on £in area yield and 
loss basis if such a policy or plan of insurance is 
offered for the agricultural commodity in the county 
in which the farm is located; 
"(ii) provides, on a uniform national basis, a higher 
combination of yield and price protection than the cov-
erage available under paragraph (2)(A); and 
"(iii) the Corporation determines is comparable to 
the coverage available under paragraph (2)(A) for pur-
poses of subsection (e)(2)(A).". 
(b) ADMINISTRATIVE FEE.— 
(1) REVISED FEE.—Section 508(b)(5) of the Federal Crop 
Insurance Act (7 U.S.C. 1508(b)(5)) is amended— 
(A) in subparagraph (A), by striking "$50" £ind 
inserting "$100"; 
(B) by striking subparagraph (B); and 
(C) in subparagraph (C), by striking "amounts required 
luider subparagraphs (A) and (B)" and inserting "adminis-
trative fee required by this paragraph". 
(2) CONFORMING AMENDMENT.—Section 748 of the Agri-
culture, Rural Development, Food and Drug Administration, 
PUBLIC LAW 106-224-^UNE 20, 2000 
114 STAT. 365 
and Related Agencies Appropriations Act, 1999 (as contained 
in section 101(a) of division A of Public Law 105-277; 7 U.S.C. 
1508 note), is amended by striking "$50" and inseri;ing "$100". 
(c) 
PAYMENT OF ADMINISTRATIVE FEE ON BEHALF OF PRO-
DUCERS.—Section 508(b)(5) of the Federal Crop Insurance Act (7 
U.S.C. 1508(b)(5)), as amended by subsection (b)(1)(B), is amended 
by inserting after subparagraph (A) the following: 
"(B) PAYMENT ON BEHALF OF PRODUCERS.— 
"(i) PAYMENT AUTHORIZED.—If State law permits 
a licensing fee or other payment to be paid by an 
insurance provider to a cooperative association or trade 
association and rebated to a producer with catastrophic 
risk protection or additional coverage, a cooperative 
association or trade association located in that State 
may pay, on behalf of a member of the association 
in that State or a contiguous State who consents to 
be insured under such an arrangement, all or a portion 
of the administrative fee required by this paragraph 
for catastrophic risk protection. 
"(ii) TREATMENT OF LICENSING FEES.—A licensing 
fee or other pajonent made by an insurance provider 
to the cooperative association or trade association in 
connection with the issuance of catastrophic 
risk 
protection or additional coverage to members of the 
cooperative association or trade association shall be 
subject to the laws regarding rebates of the State in 
which the fee or other payment is made. 
"(iii) SELECTION OF PROVIDER.—Nothing in this 
subparagraph limits the option of a producer to select 
the licensed insiu-ance agent or other approved insur-
ance provider from whom the producer will purchase 
a policy or plan of insurance or to refuse coverage 
for which a payment is offered to be made under clause 
(i). 
"(iv) DELIVERY OF INSURANCE.—A policy or plan 
of insurance for which a payment is made under clause 
(i) shall be delivered by a licensed insurance agent 
or other approved insurance provider. 
"(v) 
ADDITIONAL 
COVERAGE 
ENCOURAGED.—^A 
cooperative association or trade association, and any 
approved insurance provider with whom a licensing 
fee or other arrangement under this subparagraph is 
made, shall encourage producer members to purchase 
appropriate levels of additional coverage in order to 
meet the risk management needs of the member pro-
ducers. 
"(vi) REPORT.—Not later than April 1, 2002, the Deadline. 
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 evaluates— 
"(I) the operation of this subparagraph; and 
"(II) the impact of this subparagraph on 
participation in the Federal crop insurance pro-
gram, including the impact on levels of coverage 
purchased.". 
114 STAT. 366 
PUBLIC LAW 106-224—JUNE 20, 2000 
(d) REIMBURSEMENT RATE CHANGE.—Section 508(b)(ll) of the 
Federal Crop Insurance Act (7 U.S.C. 1508(b)(ll)) is amended by 
striking "11 percent" and inserting "8 percent". 
SEC. 104. ADMINISTRATIVE FEE FOR ADDITIONAL COVERAGE. 
Section 508(c) of the Federal Crop Insurance Act (7 U.S.C. 
1508(c)) is amended by striking paragraph (10) and inserting the 
following: 
"(10) ADMINISTRATIVE FEE.— 
"(A) FEE REQUIRED.—If a producer elects to purchase 
coverage for a crop at a level in excess of catastrophic 
risk protection, the producer shall pay an administrative 
fee for the additional coverage of $30 per crop per county. 
"(B) USE OF FEES; WAIVER.—Subparagraphs (D) 
and 
(E) of subsection (b)(5) shall apply with respect to the 
collection and use of administrative fees under this para-
graph.". 
SEC. 105. ASSIGNED YIELDS AND ACTUAL PRODUCTION fflSTORY 
ADJUSTMENTS. 
(a) ASSIGNED YIELDS.—Section 508(g)(2)(B) of the Federal Crop 
Insurance Act (7 U.S.C. 1508(g)(2)(B)) is amended— 
(1) by striking "assigned a yield" and inserting "assigned— 
"(i) a yield"; 
(2) by striking the period at the end and inserting "; or"; 
and 
(3) by adding at the end the following: 
"(ii) a yield determined by the Corporation, in the 
case of— 
"(I) a producer that has not had a share of 
the production of the insured crop for more than 
two crop years, as determined by the Secretsiry; 
"(II) a producer that produces an agricultural 
commodity on land that has not been farmed by 
the producer; or 
"(III) a producer that rotates a crop produced 
on a farm to a crop that has not been produced 
on the farm.". 
(b) 
ACTUAL 
PRODUCTION 
HISTORY 
ADJUSTMENTS.—Section 
508(g) of the Federal Crop Insurance Act (7 U.S.C. 1508(g)) is 
amended by adding at the end the following: 
"(4) ADJUSTMENT IN ACTUAL PRODUCTION HISTORY TO ESTAB-
LISH INSURABLE YIELDS.— 
"(A) APPLICATION.—This paragraph shall apply when-
ever the Corporation uses the actual production records 
of the producer to establish the producer's actual production 
history for an agricultural commodity for any of the 2001 
and subsequent crop years. 
"(B) ELECTION TO USE PERCENTAGE OF TRANSITIONAL 
YIELD.—If, for one or more of the crop years used to estab-
lish the producer's actual production history of an agricul-
tural commodity, the producer's recorded or appraised 3deld 
of the commodity was less than 60 percent of the applicable 
trsuisitional yield, as determined by the Corporation, the 
Corporation sheJl, at the election of the producer— 
"(i) exclude any of such recorded or appraised yield; 
and 
PUBLIC LAW 106-224^^JUNE 20, 2000 
114 STAT. 367 
"(ii) replace each excluded yield with a 3deld equal 
to 60 percent of the applicable treinsitional yield. 
"(C) PREMIUM ADJUSTMENT.—In the case of a producer 
that makes an election under subparagraph (B), the Cor-
poration shall adjust the premium to reflect the risk associ-
ated with the adjustment made in the actual production 
history of the producer. 
"(5) ADJUSTMENT TO REFLECT INCREASED YIELDS FROM 
SUCCESSFUL PEST CONTROL EFFORTS.— 
"(A) SITUATIONS JUSTIFYING ADJUSTMENT.—The Cor-
poration shall develop a methodology for adjusting the 
actual production history of a producer when each of the 
following apply: 
"(i) The producer's farm is located in an area where 
systematic, area-wide efforts have been undertaken 
using certain operations or measures, or the producer's 
farm is a location at which certain operations or meas-
ures have been undertaken, to detect, eradicate, sup-
press, or control, or at least to prevent or retard the 
spread of, a plant disease or plant pest, including a 
plant pest (as defined in section 102 of the Department 
of Agriculture Organic Act of 1944 (7 U.S.C. 147a)). 
"(ii) The presence of the plant disease or plant 
pest has been found to adversely affect the yield of 
the agricultural commodity for which the producer is 
applying for insurance. 
"(iii) The efforts described in clause (i) have been 
effective. 
"(B) ADJUSTMENT AMOUNT.—The amount by which the 
Corporation adjusts the actual production history of a pro-
ducer of an agricultural commodity shall reflect the degree 
to which the success of the systematic, area-wide efforts 
described in subparagraph (A), on average, increases the 
yield of the commodity on the producer's farm, as deter-
mined by the Corporation.". 
SEC. 106. REVIEW AND ADJUSTMENT IN RATING METHODOLOGIES, 
Section 508(i) of the Federal Crop Insursaice Act (7 U.S.C. 
1508(i)) is amended— 
(1) by striking "The Corporation" and inserting the fol-
lowing: 
"(1) IN GENERAL.—The Corporation"; and 
(2) by adding at the end the following: 
"(2) REVIEW OF RATING METHODOLOGIES.—To maximize 
participation in the Federal crop insurance program and to 
ensure equity for producers, the Corporation shall periodically 
review the methodologies employed for rating plans of insurance 
under this title consistent with section 507(c)(2). 
"(3) ANALYSIS OF RATING AND LOSS HISTORY.—The Corpora-
tion shall analyze the rating and loss history of approved poli-
cies and plans of insurance for agricultural commodities by 
area. 
"(4) PREMIUM ADJUSTMENT.—If the Corporation makes a 
determination that premium rates are excessive for an agricul-
tural commodity in an area relative to the requirements of 
subsection (d)(2) for that area, then, for the 2002 crop year 
(and as necessary thereafter), the Corporation shall make 
114 STAT. 368 
PUBLIC LAW 106-224—JUNE 20, 2000 
appropriate adjustments in the premium rates for that area 
for that agricultural commodity.". 
SEC. 107. QUALITY ADJUSTMENT. 
Section 508 of the Federal Crop Insurance Act (7 U.S.C. 1508) 
is amended by striking subsection (m) and inserting the following: 
"(m) QUALITY LOSS ADJUSTMENT COVERAGE.— 
"(1) EFFECT OF COVERAGE.—If a policy or plan of insurance 
offered under this title includes quality loss adjustment cov-
erage, the coverage shall provide for a reduction in the quantity 
of production of the agricultural commodity considered produced 
during a crop year, or a similar adjustment, as a result of 
the agricultural commodity not meeting the quality standards 
established in the policy or plan of insurance. 
"(2) ADDITIONAL QUALITY LOSS ADJUSTMENT.— 
"(A) PRODUCER OPTION.—Notwithstanding any other 
provision of law, in addition to the quality loss adjustment 
coverage available under paragraph (1), the Corporation 
shall offer producers the option of purchasing quality loss 
adjustment coverage on a basis that is smaller than a 
unit with respect to an agricultural commodity that satis-
fies each of the following: 
"(i) The agricultural commodity is sold on an 
identity-preserved basis. 
"(ii) All quality determinations are made solely 
by the Federal agency designated to grade or classify 
the agricultural commodity. 
"(iii) All quality determinations are made in 
accordance with standards published by the Federal 
agency in the Federal Register. 
"(iv) The discount schedules that reflect the reduc-
tion in quality of the agricultural commodity are estab-
lished by the Secretary. 
"(B) BASIS FOR ADJUSTMENT.—Under this paragraph, 
the Corporation shall set the quality standards below which 
quality losses will be paid based on the variability of the 
grade of the agricultural commodity from the base quality 
for the agricultural commodity. 
"(3) REVIEW OF CRITERIA AND PROCEDURES.—The Corpora-
tion shall contract with a qualified person to review the quality 
loss adjustment procedures of the Corporation so that the proce-
dures more accurately reflect local quality discounts that are 
applied to agricultural commodities insured under this title. 
Based on the review, the Corporation shall make adjustments 
in the procedures, taking into consideration the actuarial sound-
ness of the adjustment and the prevention of fraud, waste, 
and abuse.". 
SEC. 108. DOUBLE INSURANCE AND PREVENTED PLANTING. 
The Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) is 
amended by inserting after section 508 (7 U.S.C. 1508) the following: 
"SEC. 508A. DOUBLE INSURANCE AND PREVENTED PLANTING. 
"(a) DEFINITIONS.—In this section: 
"(1) FIRST CROP.—The term 'first crop' means the first 
crop of the first agricultural commodity planted for harvest, 
or prevented from being planted, on specific acreage during 
a crop year and insured under this title. 
PUBLIC LAW 106-224-^JUNE 20, 2000 
114 STAT. 369 
"(2) SECOND CROP.—The term 'second crop' means a second 
crop of the same agricultural commodity as the first crop, 
or a crop of a different agricultural commodity following the 
first crop, pleinted on the same acreage as the first crop for 
harvest in the same crop year, except the term does not include 
a replanted crop. 
"(3) REPLANTED CROP.—The term 'replanted crop' means 
any agricultural commodity replsinted on the same acreage 
as the first crop for harvest in the same crop year if the 
replanting is required by the terms of the policy of insurance 
covering the first crop. 
"(b) DOUBLE INSURANCE.— 
"(1) OPTIONS ON LOSS TO FIRST CROP.—Except as provided 
in subsections (d) and (e), if a first crop insured under this 
title in a crop year has a total or partial insurable loss, the 
producer of the first crop may elect one of the following options: 
"(A) No SECOND CROP PLANTED.—The producer may— 
"(i) elect to not plant a second crop on the same 
acreage for heirvest in the seune crop year; and 
"(ii) collect an indemnity payment that is equal 
to 100 percent of the insurable loss for the first crop. 
"(B) SECOND CROP PLANTED.—The producer may— 
"(i) plant a second crop on the same acreage for 
hsirvest in the same crop year; and 
"(ii) collect an indemnity pa3anent established by 
the Corporation for the first crop, but not to exceed 
35 percent of the insurable loss for the first crop. 
"(2) EFFECT OF NO LOSS TO SECOND CROP.—If a producer 
makes an election under paragraph (1)(B) and the producer 
does not suffer an insurable loss to the second crop, the pro-
ducer may collect an indemnity pajonent for the first crop 
that is equad to— 
"(A) 100 percent of the insurable loss for the first 
crop; less 
"(B) the amount previously collected under paragraph 
(l)(B)(ii). 
"(3) PREMIUM FOR FIRST CROP IF SECOND CROP PLANTED.— 
"(A) INITIAL PREMIUM.—If a producer makes an election 
under paragraph (1)(B), the producer shall be responsible 
for a premium for the first crop that is commensurate 
with the indemnity paid under paragraph (l)(B)(ii). The 
Corporation shall adjust the total premium for the first 
crop to reflect the reduced indemnity. 
"(B) EFFECT OF NO LOSS TO SECOND CROP.—If the pro-
ducer makes an election under paragraph (IXB) and the 
producer does not suffer an insurable loss to the second 
crop, the producer shall be responsible for a premium for 
the first crop that is equgJ to— 
"(i) the full premium owed by the producer for 
the first crop; less 
"(ii) the amount of premium previously p£dd under 
subpgiragraph (A). 
"(c) PREVENTED PLANTING COVERAGE.— 
"(1) OPTIONS ON LOSS TO FIRST CROP.—Except as provided 
in subsections (d) and (e), if a first crop insvired under this 
title in a crop year is prevented fi*om being planted, the pro-
ducer of the first crop may elect one of the following options: 
114 STAT. 370 
PUBLIC LAW 106-224-^UNE 20, 2000 
"(A) No SECOND CROP PLANTED.—The producer may— 
"(i) elect to not plant a second crop on the same 
acreage for harvest in the same crop year; and 
"(ii) subject to paragraph (4), collect an indemnity 
pa3rment that is equal to 100 percent of the prevented 
planting guarantee for the acreage for the first crop. 
"(B) SECOND CROP PLANTED.—The producer may— 
"(i) plant a second crop on the SEime acreage for 
harvest in the same crop year; and 
"(ii) subject to paragraphs (4) and (5), collect an 
indemnity payment established by the Corporation for 
the first crop, but not to exceed 35 percent of the 
prevented planting guarantee for the acreage for the 
first crop. 
"(2) PREMIUM FOR FIRST CROP IF SECOND PLANTED.—If the 
producer makes an election under peiragraph (1)(B), the pro-
ducer shall pay a premium for the first crop that is commensu-
rate with the indemnity paid under paragraph (l)(B)(ii). The 
Corporation shall adjust the total premium for the first crop 
to reflect the reduced indemnity. 
"(3) EFFECT ON ACTUAL PRODUCTION HISTORY.—Except in 
the case of double cropping described in subsection (d), if a 
producer make an election under paragraph (1)(B) for a crop 
year, the Corporation shall assign the producer a recorded 
yield for that crop year for the first crop equal to 60 percent 
of the producer's actual production history for the agricultural 
commodity involved, for purposes of determining the producer's 
actual production history for subsequent crop years. 
"(4) AREA CONDITIONS REQUIRED FOR PAYMENT.—The Cor-
poration shall limit prevented plsuiting pajnnents for producers 
to those situations in which other producers, in the area where 
a first crop is prevented from being planted is located, are 
also generally affected by the conditions that prevented the 
first crop from being planted. 
"(5) PLANTING DATE.—If a producer plEints the second crop 
before the latest plEuiting date established by the Corporation 
for the first crop, the Corporation shall not make a prevented 
planting pa5anent with regard to the first crop. 
"(d) 
EXCEPTION FOR ESTABLISHED DOUBLE CROPPING PRAC-
TICES.—^A producer may receive full indemnity pa5maents on two 
or more crops planted for h£irvest in the same crop year and 
insured under this title if each of the following conditions are 
met: 
"(1) There is an established practice of planting two or 
more crops for harvest in the same crop year in the area, 
as determined by the Corporation. 
"(2) An additional coverage policy or plan of insurgmce 
is offered with respect to the agricultural commodities planted 
on the same acreage for harvest in the same crop yeEU" in 
the area. 
"(3) The producer has a history of planting two or more 
crops for harvest in the same crop year or the applicable acreage 
has historically had two or more crops planted for harvest 
in the S£une crop year. 
"(4) The second or more crops are customarily planted 
after the first crop for harvest on the same acreage in the 
same year in the area. 
PUBLIC LAW 106-224-^JUNE 20, 2000 
114 STAT. 371 
"(e) SUBSEQUENT CROPS.—Except in the case of double cropping 
described in subsection (d), if a producer elects to plant a crop 
(other than a replanted crop) subsequent to a second crop on the 
same acreage as the first crop and second crop for harvest in 
the same crop year, the producer shall not be eligible for insurance 
under this title, or noninsured crop assistance under section 196 
of the Agricultural Market Transition Act (7 U.S.C. 7333), for 
the subsequent crop.". 
SEC. 109. NONINSURED CROP DISASTER ASSISTANCE PROGRAM. 
(a) OPERATION AND ADMINISTRATION OF PROGRAM.—Section 
196(a)(2) of the Agricultural Market Transition Act (7 U.S.C. 
7333(a)(2)) is amended by adding at the end the following: 
"(C) COMBINATION OF SIMILAR TYPES OR VARIETIES.— 
At the option of the Secretary, all types or varieties of 
a crop or commodity, described in subparagraphs (A) and 
(B), may be considered to be a single eligible crop under 
this section.". 
(b) TIMELY APPLICATION.—Section 196(b)(1) of the Agricultural 
Market Transition Act (7 U.S.C. 7333(b)(1)) is amended in the 
second sentence by striking "at such time as the Secretary may 
require" and inserting "not later than 30 days before the beginning 
of the coverage period, as determined by the Secretary". 
(c) RECORDS AND REPORTS.—Section 196(b) of the Agricultural 
Market Transition Act (7 U.S.C. 7333(b)) is amended— 
(1) by striking paragraph (2) and inserting the following: 
"(2) RECORDS.—To be eligible for assisteuice under this 
section, a producer shall provide annusdly to the Secretary 
records of crop acreage, acreage yields, Eind production for each 
crop, as required by the Secretary."; and 
(2) in paragraph (3), by inserting "annual" after "shall 
provide". 
(d) Loss REQUIREMENTS.—Section 196 of the Agricultural 
Meirket Transition Act (7 U.S.C. 7333) is amended by striking 
subsection (c) and inserting the following: 
"(c) Loss REQUIREMENTS.— 
"(1) CAUSE.—To be eligible for assistance under this section, 
a producer of an eligible crop shall have suffered a loss of 
a noninsured commodity as the result of a cause described 
in subsection (a)(3). 
"(2) ASSISTANCE.—On making a determination described 
in subsection (aX3), the Secretary shall provide assistance 
under this section to producers of an eligible crop that have 
suffered a loss as a result of the cause described in subsection 
(a)(3). 
"(3) PREVENTED PLANTING.—Subject to paragraph (1), the 
Secretary shall make a prevented planting noninsured crop 
disaster assistance pa3anent if the producer is prevented from 
planting more thgin 35 percent of the acreeige intended for 
the eligible crop because of drought, flood, or other natural 
disaster, as determined by the Secretary. 
"(4) AREA TRIGGER.—^The Secretary shall provide assistance 
to individual producers without any requirement of an area 
(e) SERVICE FEE.—Section 196 of the Agricultural Market 
Transition Act (7 U.S.C. 7333) is amended by adding at the end 
the following: 
114 STAT. 372 
PUBLIC LAW 106-224—JUNE 20, 2000 
"(k) SERVICE FEE.— 
"(1) IN GENERAL.—To be eligible to receive assistance for 
an eligible crop for a crop year under this section, a producer 
shall pay to the Secretary (at the time at which the producer 
submits the application under subsection (b)(1)) a service fee 
for the eligible crop in an amount that is equal to the lesser 
of— 
"(A) $100 per crop per county; or 
"(B) $300 per producer per county, but not to exceed 
a total of $900 per producer. 
"(2) WAIVER.—The Secretary shall waive the service fee 
required under paragraph (1) in the case of a limited resource 
farmer, as defined by the Secretary. 
"(3) USE.—The Secretary shall deposit service fees collected 
under this subsection in the Commodity Credit Corporation 
Fund.". 
Subtitle B—Improving Program Integrity 
SEC. 121. IMPROVING PROGRAM COMPLIANCE AND INTEGRITY. 
(a) ADDITIONAL METHODS OF ENSURING PROGRAM COMPLIANCE 
AND INTEGRITY.—Section 515 of the Federal Crop Insurance Act 
(7 U.S.C. 1514) is amended to read as follows: 
"SEC. 515. PROGRAM COMPLIANCE AND INTEGRITY. 
"(a) PURPOSE.— 
"(1) IN GENERAL.—The purpose of this section is to improve 
compliance with, and the integrity of, the Federal crop insur-
ance program. 
"(2) ROLE OF INSURANCE PROVIDERS.—The Corporation shall 
work actively with approved insurance providers to address 
program compliance and integrity issues as such issues develop. 
"(b) NOTIFICATION OF COMPLIANCE PROBLEMS.— 
"(1) NOTIFICATION OF ERRORS, OMISSIONS, AND FAILURES.— 
The Corporation shall notify in writing an approved insurance 
provider of any error, omission, or failure to follow Corporation 
regulations or procedures for which the approved insurance 
provider may be responsible and which may result in a debt 
owed the Corporation. 
"(2) TIME FOR NOTIFICATION.—Notice under paragraph (1) 
shall be given within 3 years after the end of the insurance 
period during which the error, omission, or failure is alleged 
to have occurred, except that this time limitation shall not 
apply with respect to an error, omission, or procedural violation 
that is willful or intentional. 
"(3) EFFECT OF FAILURE TO TIMELY NOTIFY.—Except as 
provided in paragraph (2), the failure to timely provide the 
notice required under this subsection shall relieve the approved 
insurance provider from the debt owed the Corporation. 
"(c) RECONCILING 
PRODUCER 
INFORMATION.—The 
Secretary 
shall develop and implement a coordinated plan for the Corporation 
and the Farm Service Agency to reconcile all relevant information 
received by the Corporation or the Farm Service Agency from a 
producer who obtains crop insurance coverage under this title. 
Beginning with the 2001 crop year, the Secretary shall require 
that the Corporation and the Farm Service Agency reconcile such 
PUBLIC LAW 1 0 6 - 2 2 4 - J U N E 20, 2000 
114 STAT. 373 
producer-derived information on at least an annual basis in order 
to identify and address any discrepancies. 
"(d) IDENTIFICATION AND ELIMINATION OF FRAUD, WASTE, AND 
ABUSE.— 
"(1) FSA 
MONITORING PROGRAM.—The Secretary shall 
develop and implement a coordinated plan for the Farm Service 
Agency to assist the Corporation in the ongoing monitoring 
of programs carried out under this title, including— 
"(A) at the request of the Corporation or, subject to 
paragraph (2), on its own initiative if the Farm Service 
Agency has reason to suspect the existence of program 
fraud, waste, or abuse, conducting fact finding relative 
to allegations of program fraud, waste, or abuse; 
"(B) reporting to the Corporation, in writing in a timely 
manner, the results of any fact finding conducted pursuant 
to subparagraph (A), any allegation of fraud, waste, or 
abuse, and any identified program vulnerabilities; and 
"(C) assisting the Corporation and approved insurance 
providers in auditing a statistically appropriate number 
of claims made under any policy or plan of insurance under 
this title. 
"(2) FSA INQUIRY.—If, within five calendar days after 
receiving a report submitted under paragraph (1)(B), the Cor-
poration does not provide a written response that describes 
the intended actions of the Corporation, the Farm Service 
Agency may conduct its own inquiry into the alleged program 
fraud, waste, or abuse on approval from the State director 
of the Farm Service Agency of the State in which the alleged 
fraud, waste, or abuse occurred. If as a result of the inquiry, 
the Farm Service Agency concludes further investigation is 
warranted, but the Corporation declines to proceed with the 
investigation, the FguTn Service Agency may refer the matter 
to the Inspector General of the Department of Agriculture. 
"(3) USE OF FIELD INFRASTRUCTURE.—The plan required 
by paragraph (1) shall provide for the use of the field infrastruc-
ture of the Farm Service Agency. The Secretary shall ensure 
that relevant Farm Service Agency personnel are appropriately 
trained for any responsibilities assigned to the personnel under 
the plan. At a minimum, the personnel shall receive the same 
level of training and pass the same basic competency tests 
as required of loss adjusters of approved insurance providers. 
"(4) MAINTENANCE OF PROVIDER EFFORT.— 
"(A) IN GENERAL.—The activities of the Farm Service 
Agency under this subsection do not affect the responsi-
bility of approved insurance providers to conduct any audits 
of claims or other program reviews required by the Corpora-
tion. 
"(B) NOTIFICATION OF PROVIDERS.—The Corporation 
shall notify the appropriate approved insurance provider 
of a report from the Farm Service Agency regarding alleged 
program fraud, waste, or abuse, unless the provider is 
suspected to be included in, or a party to, the alleged 
fraud, waste, or abuse. 
"(C) RESPONSE.—^An approved insiu-ance provider that 
receives a notice imder subparagraph (B) shedl submit a 
report to the Corporation, within an appropriate time 
period determined by the Secretary, describing the actions 
114 STAT. 374 
PUBLIC LAW 106-224—JUNE 20, 2000 
taken by the provider to investigate the allegations of pro-
gram fraud, waste, or abuse contained in the notice. 
"(5) CORPORATION RESPONSE TO PROVIDER REPORTS.— 
"(A) PROMPT RESPONSE.—If an approved insurance pro-
vider reports to the Corporation that the approved insur-
ance provider 
suspects intentional 
misrepresentation, 
fraud, waste, or abuse, the Corporation shall make a deter-
mination and provide, within 90 calendar days after 
receiving the report, a written response that describes the 
intended actions of the Corporation. 
"(B) COOPERATIVE EFFORT.—The approved insurance 
provider and the Corporation shall take coordinated action 
in any case where misrepresentation, fraud, waste, or abuse 
is alleged. 
"(C) FAILURE TO TIMELY RESPOND.—If the Corporation 
fails to respond as required by subparagraph (A), an 
approved insurance provider may request the Farm Service 
Agency to assist the provider in an inquiry into the alleged 
program fraud, waste, or abuse. 
"(e) CONSULTATION WITH STATE F S A COMMITTEES.—The Sec-
retary shall establish procedures under which the Corporation shall 
consult with the State committee of the Farm Service Agency for 
a State with respect to policies, plans of insurance, and material 
related to such policies or plans of insurance (including applicable 
sales closing dates, assigned yields, and transitional yields) offered 
in that State under this title. 
"(f) DETECTION OF DISPARATE PERFORMANCE.— 
"(1) COVERED ACTIVITIES.—The Secretary shall establish 
procedures under which the Corporation will be able to identify 
the following: 
"(A) Any agent engaged in the sale of coverage offered 
under this title where the loss claims associated with such 
sales by the agent are equal to or greater than 150 percent 
(or an appropriate percentage specified by the Corporation) 
of the mean for all loss claims associated with such sales 
by all other agents operating in the same area, as deter-
mined by the Corporation. 
"(B) Any person performing loss adjustment services 
relative to coverage offered under this title where such 
loss adjustments performed by the person result in accepted 
or denied claims equal to or greater than 150 percent 
(or an appropriate percentage specified by the Corporation) 
of the mean for accepted or denied claims (as applicable) 
for all other persons performing loss adjustment services 
in the same area, as determined by the Corporation. 
"(2) REVIEW.— 
"(A) REVIEW REQUIRED.—The Corporation shall conduct 
a review of any agent identified pursuant to paragraph 
(1)(A), and any person identified pursuant to paragraph 
(1)(B), to determine whether the higher loss claims associ-
ated with the agent or the higher number of accepted 
or denied claims (as applicable) associated with the person 
are the result of fraud, waste, or abuse. 
"(B) REMEDIAL ACTION.—The Corporation shall take 
appropriate remedial action with respect to any occurrence 
of fraud, waste, or abuse identified in a review conducted 
under this paragraph. 
PUBLIC LAW 106-224—JUNE 20, 2000 
114 STAT. 375 
"(3) OVERSIGHT OF AGENTS AND LOSS ADJUSTERS.—The Cor-
poration shall develop procedures to require an annual review 
by an approved insurance provider of the performance of each 
agent and loss adjuster used by the approved insurance pro-
vider. The Corporation shall oversee the conduct of annual 
reviews and may consult with an approved insurance provider 
regarding any remedial action that is determined to be nec-
essary as a result of the annual review of an agent or loss 
adjuster. 
"(g) SUBMISSION OF INFORMATION TO CORPORATION TO SUPPORT 
COMPLIANCE EFFORTS.— 
"(1) TYPES OF INFORMATION REQUIRED.—The Secretary shall 
establish procedures under which approved insurance providers 
shall submit to the Corporation the following information with 
respect to each policy or plan of insurance offered under this 
title: 
"(A) The name and identification number of the 
insured. 
"(B) The agricultural commodity to be insured. 
"(C) The elected coverage level, including the price 
election, of the insured. 
"(2) TIME FOR SUBMISSION.—The information required by Deadline. 
paragraph (1) with respect to a policy or plan of insurance 
shall be submitted so as to ensure receipt by the Corporation 
not later than the Saturday of the week containing the calendar 
day that is 30 days after the applicable sales closing date 
for the crop to be insured. 
"(h) SANCTIONS FOR PROGRAM NONCOMPLD^NCE AND FRAUD.— 
"(1) FALSE INFORMATION.—^A producer, agent, loss adjuster, 
approved insurance provider, or other person that willfully 
and intentionally provides any false or inaccurate information 
to the Corporation or to an approved insurance provider with 
respect to a policy or plan of insurance under this title may, 
after notice and an opportunity for a hearing on the record, 
be subject to one or more of the sanctions described in para-
graph (3). 
"(2) COMPLIANCE.—A person may, after notice and an 
opportunity for a hearing on the record, be subject to one 
or more of the sanctions described in paragraph (3) if the 
person is a producer, agent, loss adjuster, approved insurance 
provider, or other person that willfully and intentionally fails 
to comply with a requirement of the Corporation. 
"(3) AUTHORIZED SANCTIONS.—If the Secretary determines 
that a person covered by this subsection has committed a 
material violation under paragraph (1) or (2), the following 
sanctions may be imposed: 
"(A) CIVIL FINES.—A civil fine may be imposed for 
each violation in an amount not to exceed the greater 
of— 
"(i) the amount of the pecuniary gain obtained 
as a result of the false or inaccurate information pro-
vided or the noncompliance with a requirement of this 
title; or 
"(ii) $10,000. 
"(B) PRODUCER DISQUALIFICATION.—In the case of a 
violation committed by a producer, the producer may be 
disqualified for a period of up to 5 years from receiving 
114 STAT. 376 
PUBLIC LAW 106-224-^UNE 20, 2000 
any monetary or nonmonetary benefit provided under each 
of the following: 
"(i) This title. 
"(ii) The Agricultural Market Transition Act (7 
U.S.C. 7201 et seq.), including the noninsured crop 
disaster assistance program under section 196 of that 
Act (7 U.S.C. 7333). 
"(iii) The Agricultural Act of 1949 (7 U.S.C. 1421 
et seq.). 
"(iv) The Commodity Credit Corporation Charter 
Act (15 U.S.C. 714 et seq.). 
"(v) The Agricultural Adjustment Act of 1938 (7 
U.S.C. 1281 et seq.). 
"(vi) Title XII of the Food Security Act of 1985 
(16 U.S.C. 3801 et seq.). 
"(vii) The Consolidated Farm and Rural Develop-
ment Act (7 U.S.C. 1921 et seq.). 
"(viii) Any law that provides assistance to a pro-
ducer of an agricultural commodity affected by a crop 
loss or a decline in the prices of agricultural commod-
ities. 
"(C) DISQUALIFICATION OF OTHER PERSONS.—In the case 
of a violation committed by an agent, loss adjuster, 
approved insurance provider, or other person (other than 
a producer), the violator may be disqualified for a period 
of up to 5 years from participating in any program, or 
receiving any benefit, under this title. 
"(4) ASSESSMENT OF SANCTION.—The Secretary shall con-
sider the gravity of the violation of the person covered by 
this subsection in determining— 
"(A) whether to impose a sanction under this sub-
section; and 
"(B) the type and amount of the sanction to be imposed. 
"(5) DISCLOSURE OF SANCTIONS.—Each policy or plan of 
insurance under this title shall provide notice describing the 
sanctions prescribed under paragraph (3) for willfully and 
intentionally— 
"(A) providing false or inaccurate information to the 
Corporation or to an approved insurance provider; or 
"(B) failing to comply with a requirement of the Cor-
poration. 
"(6) INSURANCE FUND.—^Any funds collected under this sub-
section shall be deposited into the insurance fund established 
under section 516(c). 
"(i) ANNUAL REPORT ON PROGRAM COMPLIANCE AND INTEGRITY 
EFFORTS.— 
"(1) REPORT REQUIRED.—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 an annual report describing the operation of this section 
during the preceding year and efforts underteiken by the Sec-
retary and the Corporation to carry out this section. 
"(2) INFORMATION REGARDING FRAUD, WASTE, AND ABUSE.— 
The report shall identify specific occurrences of waste, fraud, 
or abuse and contain an outline of actions that have been 
or are being taken to eliminate the identified waste, fraud, 
or abuse. 
PUBLIC LAW 106-224—JUNE 20, 2000 
114 STAT. 377 
"(j) INFORMATION MANAGEMENT.— 
"(1) SYSTEMS UPGRADES.—The Secretary shall upgrade the 
information management systems of the Corporation used in 
the administration and enforcement and this title. In upgrading 
the systems, the Secretary shall ensure that new hardware 
and software are compatible with the hardware and software 
used by other agencies of the Department to maximize data 
sharing and promote the purpose of this section. 
"(2) USE OF AVAILABLE INFORMATION TECHNOLOGIES.—The 
Secretary shall use the information technologies known as data 
mining and data warehousing and other available information 
technologies to administer and enforce this title. 
"(3) USE OF PRIVATE SECTOR.—The Secretary may enter 
into contracts to use private sector expertise and technological 
resources in implementing this subsection. 
"(k) FUNDING.— 
"(1) AVAILABLE FUNDS.—To carry out this section and sec-
tions 502(c), 506(h), 508(a)(3)(B), and 508(f)(3)(A), the Corpora-
tion may use, from Eunounts made available from the insurance 
fund 
established 
under 
section 
516(c), not 
more 
than 
$23,000,000 during the period of fiscal years 2001 through 
2005, of which not more than $9,000,000 shall be available 
for fiscal year 2001. 
"(2) PROHIBITION.—None of the funds made available under 
paragraph (1) may be used to pay the salaries of employees 
of the Corporation.". 
(b) CONFORMING AMENDMENT.—Section 506 of the Federal Crop 
Insurance Act (7 U.S.C. 1506) is amended— 
(1) by striking subsection (q); and 
(2) by redesignating subsections (r) and (s) as subsections 
(q) and (r), respectively. 
SEC. 122. PROTECTION OF CONFIDENTIAL INFORMATION. 
Section 502 of the Federal Crop Insurance Act (7 U.S.C. 1502) 
is amended by adding at the end the following: 
"(c) PROTECTION OF CONFIDENTIAL INFORMATION.— 
"(1) 
GENERAL PROHIBITION AGAINST DISCLOSURE.—Except 
as provided in paragraph (2), the Secretary, any other officer 
or employee of the Department or an agency thereof, sin 
approved insurance provider and its employees and contractors, 
and any other person may not disclose to the public information 
furnished by a producer under this title. 
"(2) AUTHORIZED DISCLOSURE.— 
"(A) 
DISCLOSURE 
IN 
STATISTICAL 
OR 
AGGREGATE 
FORM.—Information described in paragraph (1) may be dis-
closed to the public if the information has been transformed 
into a statistical or aggregate form that does not allow 
the identification of the person who supplied particular 
information. 
"(B) CONSENT OF PRODUCER.—^A producer may consent 
to the disclosure of information described in paragraph 
(1). The participation of the producer in, and the receipt 
of any benefit by the producer under, this title or any 
other program administered by the Secretary may not be 
conditioned on the producer providing consent under this 
paragraph. 
114 STAT. 378 
PUBLIC LAW 106-224-^UNE 20, 2000 
"(3) VIOLATIONS; PENALTIES.—Section 1770(c) of the Food 
Security Act of 1985 (7 U.S.C. 2276(c)) shall apply with respect 
to the release of information collected in any manner or for 
any purpose prohibited by this subsection.". 
SEC. 123. GOOD FARMING PRACTICES. 
Section 508(a) of the Federal Crop Insurance Act (7 U.S.C. 
1508(a)) is amended by striking paragraph (3) and inserting the 
following: 
"(3) EXCLUSION OF LOSSES DUE TO CERTAIN ACTIONS OF 
PRODUCER.— 
"(A) EXCLUSIONS.—Insurance provided under this sub-
section shall not cover losses due to— 
"(i) the neglect or malfeasance of the producer; 
"(ii) the failure of the producer to reseed to the 
same crop in such areas and under such circumstances 
as it is customary to reseed; or 
"(iii) the failure of the producer to follow good 
farming 
practices, 
including 
scientifically 
sound 
sustainable and organic farming practices. 
"(B) GOOD FARMING PRACTICES.— 
"(i) INFORMAL ADMINISTRATIVE PROCESS.—A pro-
ducer shall have the right to a review of a determina-
tion regEirding good farming practices made under 
subparagraph (A)(iii) in accordance with an informal 
administrative process to be established by the Cor-
poration. 
"(ii) ADMINISTRATIVE REVIEW.— 
"(I) No ADVERSE DECISION.—The determina-
tion shall not be considered an adverse decision 
for purposes of subtitle H of the Department of 
Agriculture Reorganization Act of 1994 (7 U.S.C. 
6991 et seq.). 
"(II) REVERSAL OR MODIFICATION.—Except as 
provided in clause (i), the determination may not 
be reversed or modified as the result of a subse-
quent administrative review, 
"(iii) JUDICIAL REVIEW.— 
"(I) RIGHT TO REVIEW.—A producer shall have 
the right to judicial review of the determination 
without exhausting any right to a review under 
clause (i). 
"(II) REVERSAL OR MODIFICATION.—The deter-
mination may not be reversed or modified as the 
result of judicial review unless the determination 
is found to be arbitrary or capricious.". 
SEC. 124. RECORDS AND REPORTING. 
(a) CONDITION OF OBTAINING COVERAGE.—Section 508(f)(3) of 
the Federal Crop Insurance Act (7 U.S.C. 1508(f)(3)) is amended 
by striking subparagraph (A) and inserting the following: 
"(A) provide annually records acceptable to the Sec-
retary regarding crop acreage, acreage yields, and produc-
tion for each agricultural commodity insured under this 
title or accept a yield determined by the Corporation; and". 
(b) ADDITIONAL GENERAL POWER.—Section 506 of the Federal 
Crop Insurance Act (7 U.S.C. 1506) is amended by striking sub-
section (h) Eind inserting the following: 
PUBLIC LAW 106-224^-JUNE 20, 2000 
114 STAT. 379 
"(h) COLLECTION AND SHARING OF INFORMATION.— 
"(1) SURVEYS AND INVESTIGATIONS.—The Corporation may 
conduct surveys £uid investigations relating to crop insurance, 
agriculture-related risks and losses, and other issues related 
to carrying out this title. 
"(2) DATA COLLECTION.—The Corporation shall assemble 
data for the purpose of establishing sound actuarial bases for 
insurance on agricultural commodities. 
"(3) SHARING OF RECORDS.—Notwithstanding section 502(c), 
records submitted in accordance with this title and section 
196 of the Agricultural Market Transition Act (7 U.S.C. 7333) 
shall be available to agencies and local offices of the Depart-
ment, appropriate State and Federal agencies and divisions, 
£uid approved insurance providers for use in carrying out this 
title, such section 196, and other agricultural programs.". 
Subtitle C—Research and Pilot Programs 
SEC. 131. RESEARCH AND DEVELOPMENT. 
The Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) is 
amended by adding at the end the following: 
"SEC. 522. RESEARCH AND DEVELOPMENT. 
"(a) DEFINITION OF POLICY,—In this section, the term 'policy' 
means a policy, plan of insurance, provision of a policy or plan 
of insurance, and related materials. 
"(b) 
REIMBURSEMENT 
OF 
RESEARCH, 
DEVELOPMENT, 
AND 
MAINTENANCE COSTS.— 
"(1) RESEARCH AND DEVELOPMENT REIMBURSEMENT.—The 
Corporation shall provide a pa3mQient to reimburse an applicant 
for reseeirch and development costs directly related to a policy 
that is— 
"(A) submitted to the Board Euid approved by the Board 
imder section 508(h) for reinsurance; and 
"(B) if applicable, offered for sale to producers. 
"(2) EXISTING PLANS.—The Corporation shall reimburse 
costs associated with research and development costs directly 
related to a policy that was approved by the Board prior to 
the date of the enactment of this section. 
"(3) MARKETABILITY.—The Corporation shall approve a 
reimbursement under peu'agraph (1) or (2) only sifter deter-
mining that the policy is marketable based on a reasonable 
marketing plan, as determined by the Board. 
"(4) MAINTENANCE PAYMENTS.— 
"(A) REQUIREMENT,—The Corporation shall reimburse 
maintenance costs associated with the annual cost of under-
writing for a policy described in paragraphs (1) and (2). 
"(B) DURATION.—Payments with respect to msdnte-
nance costs may be provided for a period of not more 
than four reinsurance years subsequent to Board approval 
for payment under this subsection. 
"(C) OPTIONS FOR MAINTENANCE.—On the expiration 
of the 4-ye£u- period described in subpareigraph (B), the 
approved insurance provider responsible for maintenance 
of the policy may— 
114 STAT. 380 
PUBLIC LAW 106-224—JUNE 20, 2000 
"(i) maintain the policy and charge a fee to 
approved insurance providers that elect to sell the 
policy under this subsection; or 
"(ii) transfer responsibility for maintenance of the 
policy to the Corporation. 
"(D) FEE.— 
"(i) AMOUNT.—Subject to approval by the Board, 
the amount of the fee that is payable by an approved 
insurance provider that elects to sell the policy shall 
be an amount that is determined by the approved 
insurance provider maintaining the policy. 
"(ii) APPROVAL.—The Board shall approve the 
amount of a fee determined under clause (i) for mainte-
nance of the policy unless the Boeo-d determines that 
the amount of the fee— 
"(I) is unreasonable in relation to the mainte-
nance costs associated with the policy; or 
"(II) unnecessarily inhibits the use of the 
policy. 
"(5) TREATMENT OF PAYMENT.—Payments made under this 
subsection for a policy shall be considered as pa5rment in full 
by the Corporation for the research and development conducted 
with regard to the policy and any property rights to the policy. 
"(6) 
REIMBURSEMENT AMOUNT.—The Corporation 
shall 
determine the amount of the payment under this subsection 
for an approved policy based on the complexity of the policy 
and the size of the area in which the policy or material is 
expected to be sold. 
"(c) RESEARCH AND DEVELOPMENT CONTRACTING AUTHORITY.— 
"(1) AUTHORITY.—The Corporation may enter into contracts 
to carry out research and development to— 
"(A) increase participation in States in which the Cor-
poration determines that— 
"(i) there is traditionally, and continues to be, a 
low level of Federal crop insurance participation and 
availability; and 
"(ii) the State is underserved by the Federed crop 
insurance program; 
"(B) increase participation in areas that are under-
served by the Federal crop insurance program; and 
"(C) increase participation by producers of underserved 
agricultural commodities, including specialty crops. 
"(2) 
UNDERSERVED 
AGRICULTURAL 
COMMODITIES 
AND 
AREAS.— 
"(A) AUTHORITY.—The Corporation may enter into con-
tracts under procedures prescribed by the Corporation with 
qualified persons to carry out research and development 
for policies that promote the purposes of paragraph (1). 
"(B) CONSULTATION.—Before entering into a contract 
under subparagraph (A), the Corporation shall consult with 
groups representing producers of agricultural commodities 
that would be served by the policies that are the subject 
of the research and development. 
"(3) QUALIFIED PERSONS.—^A person with experience in crop 
insurance or farm or ranch risk management (including a col-
lege or university, an approved insurance provider, and a trade 
or research organization), as determined by the Corporation, 
PUBLIC LAW 106-224-^JUNE 20, 2000 
114 STAT. 381 
shall be eligible to enter into a contract with the Corporation 
under this subsection. 
"(4) TYPES OF CONTRACTS.—^A contract under this sub-
section may provide for research and development regarding 
new or expanded policies, including policies based on adjusted 
gross income, cost-of-production, quality losses, and an inter-
mediate base program with a higher coverage and cost than 
catastrophic risk protection. 
"(5) USE OF RESULTING POLICIES.—The Corporation may 
offer any policy developed under this subsection that is 
approved by the Board. 
"(6) RESEARCH AND DEVELOPMENT PRIORITIES.—The Cor-
poration shall establish as one of the highest research and 
development priorities of the Corporation the development of 
a pasture, range, and forage program. 
"(7) STUDY OF MULTIYEAR COVERAGE.— 
"(A) IN GENERAL.—The Corporation shall contract with 
a qualified person to conduct a study to determine whether 
offering policies that provide coverage for multiple years 
would reduce fraud, waste, and abuse by persons that 
participate in the Federal crop insurance progremi. 
"(B) REPORT.—Not later than 1 year after the date Deadline. 
of the enactment of this section, the Corporation shall 
submit to the Committee on Agriculture of the House of 
Representatives and the Committee on Agriculture, Nutri-
tion, and Forestry of the Senate a report that describes 
the results of the study conducted under subparagraph 
(A). 
"(8) CONTRACT FOR REVENUE COVERAGE PLANS.—The Cor-
poration shall enter into a contract for research and develop-
ment regarding one or more revenue coverage plans that are 
designed to enable producers to take maximum advantage of 
fluctuations 
in market prices and thereby maximize revenue 
realized from the sale of an agricultural commodity. A revenue 
coverage plan may include the use of existing market 
instruments or the development of new market instruments. 
Not later than 15 months after the date of the enactment Deadline. 
of this section, the Corporation shall submit to the Committee 
on Agriculture of the House of Representatives and the Com-
mittee on Agriculture, Nutrition, and Forestry of the Senate 
a report that describes the results of the contract entered 
into under this paragraph. 
"(9) CONTRACT FOR COST OF PRODUCTION POLICY.— 
"(A) AUTHORITY.—The Corporation shall enter into a 
contract for research and development regarding a cost 
of production policy. 
"(B) RESEARCH AND DEVELOPMENT.—The research and 
development shall— 
"(i) take into consideration the differences in the 
cost of production on a county-by-county basis; and 
"(ii) cover as many commodities as is practicable. 
"(10) RELATION TO LIMITATIONS.—^A policy developed under 
this subsection may be prepared without regard to the limita-
tions of this title, including— 
"(A) the requirement concerning the levels of coverage 
and rates; and 
79-194 O - 00 - 14 : QL 3 Part 1 
114 STAT. 382 
PUBLIC LAW 106-224—JUNE 20, 2000 
"(B) the requirement that the price level for each 
insured agricultural commodity must equal the expected 
market price for the agricultural commodity, as established 
by the Board. 
"(d) PARTNERSHIPS FOR RISK MANAGEMENT DEVELOPMENT AND 
IMPLEMENTATION.— 
"(1) PURPOSE.—The purpose of this subsection is to 
authorize the Corporation to enter into partnerships with public 
and private entities for the purpose of increasing the avail-
ability of loss mitigation, financial, and other risk management 
tools for producers, with a priority given to risk management 
tools for producers of agriciiltural commodities covered by sec-
tion 196 of the Agricultural Market Transition Act (7 U.S.C. 
7333), specialty crops, and underserved agricultural commod-
ities. 
"(2) AUTHORITY.—The Corporation may enter into partner-
ships with the Cooperative State Research, Education, and 
Extension Service, the Agricultural Rese£U"ch Service, the 
Nationed Oceanic Atmospheric Administration, and other appro-
priate public and private entities with demonstrated capabili-
ties in developing and implementing risk management and 
marketing options for producers of specialty crops and under-
served agricultural commodities. 
"(3) OBJECTIVES.—The Corporation may enter into a part-
nership under paragraph (2)— 
"(A) to enhance the notice and timeliness of notice 
of weather conditions that could negatively affect crop 
3delds, quality, and final product use in order to gJlow 
producers to take preventive actions to increase end product 
profitability and marketability and to reduce the possibility 
of crop insurance clsums; 
"(B) to develop a multifaceted approach to pest manage-
ment and fertilization to decrease inputs, decrease environ-
mental exposure, and increase application efficiency; 
"(C) to develop or improve techniques for planning, 
breeding, planting, growing, maintedning, 
harvesting, 
storing, shipping, and msirketing that will address quality 
and quantity challenges associated with year-to-year and 
regional variations; 
"(D) to clarify labor requirements and assist producers 
in complying with requirements to better meet the phys-
ically intense Euid time-compressed planting, tending, emd 
harvesting requirements associated with the production of 
specialty crops and luiderserved agricultural commodities; 
"(E) to provide assistance to State foresters or equiva-
lent officials for the prescribed use of burning on private 
forest land for the prevention, control, and suppression 
of fire; 
"(F) to provide producers with training and informa-
tional opportunities so that the producers will be better 
able to use financial management, crop insurance, mar-
keting contracts, and other existing and emerging risk 
management tools; and 
"(G) to develop other risk management tools to further 
increase economic and production stability. 
"(e) FUNDING.— 
PUBLIC LAW 106-224-^UNE 20, 2000 
114 STAT. 383 
"(1) REIMBURSEMENTS.—Of the amounts made available 
from the insurance fund established under section 516(c), the 
Corporation may use to provide reimbursements under sub-
section (b) not more than $10,000,000 for each of fiscal years 
2001 and 2002 and not more than $15,000,000 for fiscal year 
2003 and each subsequent fiscal year. 
"(2) CONTRACTING.— 
"(A) AUTHORITY.—Of the amounts made available from 
the insurance fund established under section 516(c), the 
Corporation may use to carry out contracting and partner-
ships under subsections (c) and (d) not more than 
$20,000,000 for each of fiscal years 2001 through 2003 
and not more than $25,000,000 for fiscal year 2004 and 
each subsequent fiscal year. 
"(B) UNDERSERVED STATES.—Of the amount made 
available under subparagraph (A) for a fiscal year, the 
Corporation shall use not more than $5,000,000 for the 
fiscal year to carry out contracting for research and develop-
ment to carry out the purpose described in subsection 
(c)(1)(A). 
"(3) UNUSED FUNDING.—If the Corporation determines that 
the amount available to provide either reimbursement pay-
ments or contract payments under this section for a fiscal 
year is not needed for such purposes, the Corporation may 
use the excess amount to carry out another function authorized 
under this section. 
"(4) PROHIBITED RESEARCH AND DEVELOPMENT BY CORPORA-
TION.— 
"(A) NEW POLICIES.—Notwithstanding subsection (d), 
on and after October 1, 2000, the Corporation shall not 
conduct research and development for any new policy for 
an agricultural commodity offered under this title. 
"(B) EXISTING POLiciES.^Any policy developed by the 
Corporation under this title before that date may continue 
to be offered for sale to producers.". 
SEC. 132. PILOT PROGRAMS. 
(a) AUTHORITY.—The Federal Crop Insurance Act (7 U.S.C. 
1501 et seq.), as amended by section 131, is amended by adding 
at the end the following: 
"SEC. 523. PILOT PROGRAMS. 
7 USC 1523. 
"(a) GENERAL PROVISIONS.— 
"(1) AUTHORITY.—Except as otherwise provided in this sec-
tion, the Corporation may conduct a pilot program submitted 
to and approved by the Board under section 508(h), or that 
is developed under subsection (b) or section 522, to evaluate 
whether a proposal or new risk management tool tested by 
the pilot program is suitable for the marketplace and addresses 
the needs of producers of agricultiu-al commodities. 
"(2) PRIVATE COVERAGE.—Under this section, the Corpora-
tion shall not conduct any pilot program that provides insurance 
protection against a risk if insureince protection against the 
risk is generally available from private companies. 
"(3) COVERED ACTIVITIES.—The pilot programs described 
in psiragraph (1) may include pilot programs providing insur-
ance protection against losses involving— 
114 STAT. 384 
PUBLIC LAW 106-224-^UNE 20, 2000 
"(A) reduced forage on rangeland caused by drought 
or insect infestation; 
"(B) livestock poisoning and disease; 
"(C) destruction of bees due to the use of pesticides; 
"(D) unique special risks related to fruits, nuts, vegeta-
bles, and specialty crops in general, aquacultural species, 
and forest industry needs (including appreciation); 
"(E) after October 1, 2001, wild salmon, except that— 
"(i) any pilot program with regard to wild salmon 
may be carried out without regard to the limitations 
of this title; and 
"(ii) the Corporation shall conduct all wild salmon 
programs under this title so that, to the maximum 
extent practicable, all costs associated with conducting 
the programs are not expected to exceed $1,000,000 
for fiscal year 2002 and each subsequent fiscal year. 
"(4) SCOPE OF PILOT PROGRAMS.—The Corporation may— 
"(A) approve a pilot program under this section to 
be conducted on a regional, State, or national basis after 
considering the interests of affected producers and the 
interests of, and risks to, the Corporation; 
"(B) operate the pilot program, including any modifica-
tions of the pilot program, for a period of up to 4 years; 
"(C) extend the time period for the pilot program for 
additional periods, as determined appropriate by the Cor-
poration; and 
"(D) 
provide 
pilot 
programs 
that 
would 
allow 
producers— 
"(i) to receive a reduced premium for using whole 
farm units or single crop units of insurance; and 
"(ii) to cross State and county boundaries to form 
insurable units. 
"(5) EVALUATION.— 
"(A) REQUIREMENT.—^After the completion of any pilot 
program under this section, the Corporation shall evaluate 
the pilot program and submit to the Committee on Agri-
culture of the House of Representatives and the Committee 
on Agriculture, Nutrition, smd Forestry of the Senate a 
report on the operations of the pilot program. 
"(B) EVALUATION AND RECOMMENDATIONS.—The report 
shall include an evaluation by the Corporation of the pilot 
progrsim and the recommendations of the Corporation with 
respect to implementing the program on a national basis. 
"(b) LIVESTOCK PILOT PROGRAMS.— 
"(1) DEFINITION OF LIVESTOCK.—In this subsection, the 
term 'livestock' includes, but is not limited to, cattle, sheep, 
swine, goats, and poultry. 
"(2) PROGRAMS REQUIRED.—Subject to paragraph (7), the 
Corporation shall conduct two or more pilot programs to 
evaluate the effectiveness of risk msinagement tools for livestock 
producers, including the use of futures and options contracts 
and policies and plans of insurance that protect the interests 
of livestock producers and that provide— 
"(A) livestock producers with reasonable protection 
from the financial risks of price or income fluctuations 
inherent in the production and marketing of livestock; or 
"(B) protection for production losses. 
PUBLIC LAW 106-224-^JUNE 20, 2000 
114 STAT. 385 
"(3) PURPOSE OF PROGRAMS.—To the maximum extent prac-
ticable, the Corporation shall evaluate the greatest number 
and variety of pilot programs described in paragraph (2) to 
determine which of the offered risk management tools are best 
suited to protect livestock producers from the financial risks 
associated with the production and marketing of livestock. 
"(4) TIMING.—The Corporation shsill begin conducting live-
stock pilot programs under this subsection during fiscal year 
2001. 
"(5) RELATION TO OTHER LIMITATIONS.—^Any policy or plan 
of insurance offered under this subsection may be prepared 
without regard to the limitations of this title. 
"(6) ASSISTANCE.—^As part of a pilot program under this 
subsection, the Corporation may provide reinsurance for policies 
or plsins of insurance and subsidize the purchase of futures 
and options contracts or policies and plans of insurance offered 
under the pilot program. 
"(7) PRIVATE INSURANCE.—No action may be undertaken 
with respect to a risk under this subsection if the Corporation 
determines that insurance protection for livestock producers 
against the risk is generally available from private companies. 
"(8) LOCATION.—The Corporation shadl conduct the live-
stock pilot programs under this subsection in a number of 
counties that is determined by the Corporation to be adequate 
to provide a comprehensive evgduation of the feasibility, 
effectiveness, and demand among producers for the risk 
management tools evaluated in the pilot programs. 
"(9) ELIGIBLE PRODUCERS.—^Any producer of a type of live-
stock covered by a pilot program under this subsection that 
owns or operates a farm or ranch in a county selected as 
a location for that pilot program shall be eligible to participate 
in that pilot program. 
"(10) LIMITATION ON EXPENDITURES.—The Corporation shall 
conduct all livestock programs under this title so that, to the 
maximum extent practicable, all costs associated with con-
ducting the livestock programs (other than research and 
development costs covered by section 522) are not expected 
to exceed the following: 
"(A) $10,000,000 for each of fiscal years 2001 and 2002. 
"(B) $15,000,000 for fiscal year 2003. 
"(C) $20,000,000 for fiscal year 2004 and each subse-
quent fiscal year. 
"(c) REVENUE INSURANCE PILOT PROGRAM.— 
"(1) IN GENERAL.—Subject to section 522(e)(4), the Sec-
retary shall carry out a pilot program in a limited number 
of counties, as determined by the Secretary, for crop years 
1997 through 2001, under which a producer of wheat, feed 
grains, soybeans, or such other commodity as the Secretary 
considers appropriate may elect to receive insurance against 
loss of revenue, as determined by the Secretary. 
"(2) ADMINISTRATION.—Revenue insurance under this sub-
section shall— 
"(A) be offered through reinsurance arrangements with 
private insurance companies; 
"(B) offer at least a minimum level of coverage that 
is £in alternative to catastrophic crop insurance; 
"(C) be actuarially sound; and 
114 STAT. 386 
PUBLIC LAW 106-224-^JUNE 20, 2000 
"(D) require the payment of premiums and administra-
tive fees by an insured producer. 
"(d) PREMIUM RATE REDUCTION PILOT PROGRAM.— 
"(1) PURPOSE.—The purpose of the pilot program estab-
lished under this subsection is to determine whether approved 
insurance providers will compete to market policies or plsins 
of insurance with reduced rates of premium, in a manner 
that maintains the financial soundness of approved insurance 
providers and is consistent with the integrity of the Federal 
crop insurance program. 
"(2) ESTABLISHMENT.— 
"(A) IN GENERAL.—Beginning with the 2002 crop year, 
the Corporation shall establish a pilot program under which 
approved insurance providers may propose for approval 
by the Board policies or plans of insurance with reduced 
rates of premium— 
"(i) for one or more agricultural commodities; and 
"(ii) within a limited geographic area, as proposed 
by the approved insurance provider and approved by 
the Bo£ird. 
"(B) DETERMINATION BY BOARD.—The Board shall 
approve a policy or plan of insurance proposed under this 
subsection that involves a premium reduction if the Board 
determines that— 
"(i) the interests of producers are adequately pro-
tected within the pilot area; 
"(ii) rates of premium are actuarially appropriate, 
as determined by the BoEird; 
"(iii) the size of the proposed pilot area is adequate; 
"(iv) the proposed policy or plan of insurance would 
not unfairly discriminate among producers within the 
proposed pilot area; 
"(v) if the proposed policy or plan of insurance 
were available in a geographic area larger than the 
proposed pilot area, the proposed policy or plan of 
insurance would— 
"(I) not have a significant adverse impact on 
the crop insurance delivery system; 
"(II) not result in a reduction of program 
integrity; 
"(III) be actuarially appropriate; and 
"(IV) not place an additional financial burden 
on the Federal Government; £ind 
"(vi) the proposed policy or plan of insurance meets 
other requirements of this title determined appropriate 
by the Board. 
"(C) TIME LIMITATIONS AND PROCEDURES.—The time 
limitations and procedures of the Board established under 
section 508(h) shall apply to a proposal submitted under 
this subsection.". 
(b) CONFORMING AMENDMENTS.—Section 518 of the 
Federal 
Crop Insureince Act (7 U.S.C. 1518) is amended— 
(1) by striking "livestock and" after "commodity, excluding"; 
and 
(2) by striking "under subsection (a) or (m) of section 508 
of this title". 
PUBLIC LAW 106-224—JUNE 20, 2000 
114 STAT. 387 
SEC. 133. EDUCATION AND RISK MANAGEMENT ASSISTANCE. 
The Federal Crop Insurance Act (7 U.S.C. 1501 et seq.), as 
amended by section 132(a), is amended by adding at the end the 
following: 
"SEC. 524. EDUCATION AND RISK MANAGEMENT ASSISTANCE. 
7 USC 1524. 
"(a) EDUCATION ASSISTANCE.— 
"(1) IN GENERAL.—Subject to the amounts made available 
under paragraph (4)— 
"(A) the Corporation shall carry out the program estab-
lished under paragraph (2); and 
"(B) the Secretary, acting through the Cooperative 
State Research, Education, and Extension Service, shall 
carry out the program established under paragraph (3). 
"(2) EDUCATION AND INFORMATION.—The Corporation shall 
establish a program under which crop insurance education 
and information is provided to producers in States in which 
(as determined by the Secretary)— 
"(A) there is traditionally, and continues to be, a low 
level of Federal crop insurance participation and avail-
ability; and 
"(B) producers are under 
served by the Federal crop 
insurance program. 
"(3) PARTNERSHIPS FOR RISK MANAGEMENT EDUCATION.— 
"(A) AUTHORITY.—The Secretary, acting through the 
Cooperative State Research, Education, and Extension 
Service, shall establish a program under which competitive 
grants are made to qualified public and private entities 
(including land grant colleges, cooperative extension serv-
ices, and colleges or universities), as determined by the 
Secretary, for the purpose of educating agricultural pro-
ducers about the full range of risk management activities, 
including futures, options, agricultural trade options, crop 
insurance, cash forward 
contracting, 
debt 
reduction, 
production diversification, farm resources risk reduction, 
and other risk management strategies. 
"(B) BASIS FOR GRANTS.—^A grant under this paragraph 
shall be awarded on the basis of merit and shall be subject 
to peer or merit review. 
"(C) OBLIGATION PERIOD.—Funds for a grant under 
this paragraph shall be available to the Secretary for 
obligation for a 2-year period. 
"(D) ADMINISTRATIVE COSTS.—The Secretary may 
use 
not more than 4 percent of the funds made available for 
grants under this paragraph for administrative costs 
incurred by the Secretary in carrying out this paragraph. 
"(4) FUNDING.—From the insurance fund established under 
section 516(c), there is transferred— 
"(A) for the education and information program estab-
lished under paragraph (2), $5,000,000 for fiscal year 2001 
and each subsequent fiscal year; and 
"(B) for the partnerships for risk management edu-
cation program established under paragraph (3), $5,000,000 
for fiscal year 2001 and each subsequent fiscal year. 
"(b) AGRICULTURAL MANAGEMENT ASSISTANCE.— 
114 STAT. 388 
PUBLIC LAW 106-224—JUNE 20, 2000 
"(1) AUTHORITY.—The Secretary shall provide cost share 
assistance to producers, in a manner determined by the Sec-
retary, in not less than 10, nor more than 15, States in which 
participation in the Federal crop insurance program is histori-
cally low, as determined by the Secretary. 
"(2) USES.—^A producer may use cost share assistance pro-
vided under this subsection to— 
"(A) construct or improve— 
"(i) watershed management structures; or 
"(ii) irrigation structures; 
"(B) plant trees to form windbreaks or to improve 
water quality; 
"(C) mitigate financial risk through production diver-
sification or resource conservation practices, including— 
"(i) soil erosion control; 
"(ii) integrated pest management; or 
"(iii) transition to organic farming; 
"(D) enter into futures, hedging, or options contracts 
in a manner designed to help reduce production, price, 
or revenue risk; 
"(E) enter into agricultural trade options as a hedging 
transaction to reduce production, price, or revenue risk; 
or 
"(F) conduct any other activity related to the activities 
described in subparagraphs (A) through (E), as determined 
by the Secretary. 
"(2) PAYMENT LIMITATION.—The total amount of payments 
made to a person (as defined in section 1001(5) of the Food 
Security Act (7 U.S.C. 1308(5))) under this subsection for any 
year may not exceed $50,000. 
"(3) COMMODITY CREDIT CORPORATION.— 
"(A) IN GENERAL.—The Secretary shall carry out this 
subsection through the Commodity Credit Corporation. 
"(B) FUNDING.—The Commodity Credit Corporation 
shall 
make 
available to carry out this 
subsection 
$10,000,000 for fiscal year 2001 and each subsequent fiscal 
year.". 
SEC. 134. OPTIONS PILOT PROGRAM. 
Section 191 of the Agricultural Market Transition Act (7 U.S.C. 
7331) is amended— 
(1) in the first sentence of subsection (b), by striking "100 
counties, except that not more than 6" and inserting "300 
counties, except that not more than 25"; 
(2) in subsection (c)(2), by inserting before the semicolon 
the following: "during any calendar year in which a county 
in which the farm of the producer is located is included in 
the pilot program"; and 
(3) in the first sentence of subsection (h), by inserting 
before the period at the end the following: ", except that the 
amount of Commodity Credit Corporation funds used to carry 
out this section shall not exceed, to the maximum extent prac-
ticable, $9,000,000 for fiscal year 2001, $15,000,000 for fiscal 
year 2002, and $2,000,000 for fiscal year 2003". 
PUBLIC LAW 106-224—JUNE 20, 2000 
114 STAT. 389 
Subtitle D—^Administration 
SEC. 141. RELATION TO OTHER LAWS. 
Section 502 of the Federal Crop Insurance Act (7 U.S.C. 1502), 
as amended by section 122, is amended by adding at the end 
the following: 
"(d) RELATION TO OTHER LAWS.— 
"(1) TERMS AND CONDITIONS OF POLICIES AND PLANS.—The 
terms and conditions of any policy or plan of insurance offered 
under this title that is reinsured by the Corporation shall 
not— 
"(A) be subject to the jurisdiction of the Commodity 
Futures 
Trading Commission or the Securities and 
Exchange Commission; or 
"(B) be considered 
to be accounts, 
agreements 
(including any transaction that is of the character of, or 
is commonly known to the trade as, an 'option', 'privilege', 
'indemnity', 'bid', 'offer', 'put', 'call', 'advance guaranty', or 
'decline guaranty*), or transactions involving contracts of 
sale of a commodity for future delivery, traded or executed 
on a contract market for the purposes of the Commodity 
Exchange Act (7 U.S.C. 1 et seq.). 
"(2) EFFECT ON CFTC AND COMMODITY EXCHANGE ACT.— 
Nothing in this title affects the jurisdiction of the Commodity 
Futures Trading Commission or the applicability of the Com-
modity Exchange Act (7 U.S.C. 1 et seq.) to any treuisaction 
conducted on a contract market under that Act by an approved 
insurance provider to offset the approved insurance provider's 
risk under a plan or policy of insurance under this title.". 
SEC. 
142. 
M A N A G E M E N T 
OF 
CORPORATION. 
(a) BOARD OF DIRECTORS OF CORPORATION.— 
(1) CHANGE IN COMPOSITION.—Section 505 of the Federal 
Crop Insiu*ance Act (7 U.S.C. 1505) is amended by striking 
the section heading, "SEC. 505.", and subsection (a) and 
inserting the following: 
"SEC. 
505. 
MANAGEMENT 
OF 
CORPORATION. 
"(a) BOARD OF DIRECTORS.— 
"(1) ESTABLISHMENT.—The management of the Corporation 
shall be vested in a Board of Directors subject to the general 
supervision of the Secretary. 
"(2) COMPOSITION.—The Board shall consist of only the 
following members: 
"(A) The manager of the Corporation, who shall serve 
as a nonvoting ex officio member. 
"(B) The Under Secretary of Agriculture responsible 
for the Federal crop insurance program. 
"(C) One additional Under Secretary of Agriculture 
(as designated by the Secretary). 
"(D) The Chief Economist of the Department of Agri-
culture. 
"(E) One person experienced in the crop insureuice 
business. 
"(F) One person experienced in reinsurance or the regu-
lation of insurance. 
114 STAT. 390 
PUBLIC LAW 106-224—JUNE 20, 2000 
"(G) Four active producers who are policy holders, are 
from different geographic areas of the United States, and 
represent a cross-section of agricultural commodities grown 
in the United States, including at least one specialty crop 
producer. 
"(3) 
APPOINTMENT OF PRIVATE SECTOR MEMBERS.—The 
members of the Board described in subparagraphs (E), (F), 
and (G) of pgiragraph (2)— 
"(A) shall be appointed by, and hold office at the 
pleasure of, the Secretary; 
"(B) shall not be otherwise employed by the Federal 
Government; 
"(C) shall be appointed to staggered 4-year terms, as 
determined by the Secretary; and 
"(D) shall serve not more than two consecutive terms. 
"(4) CHAIRPERSON.—The Board shall select a member of 
the Board to serve as Chairperson.". 
7 use 1505 note. 
(2) IMPLEMENTATION.—The initial members of the Board 
of Directors of the Federal Crop Insurance Corporation required 
to be appointed under section 505(a)(3) of the Federal Crop 
Insurance Act (as amended by paragraph (1)) shall be appointed 
during the period beginning February 1, 2001, and ending 
April 1, 2001. 
7 use 1505 note. 
(3) EFFECT ON EXISTING BOARD.—A member of the Board 
of Directors of the Federal Crop Insurgince Corporation on 
the date of the enactment of this Act may continue to serve 
as a member of the Board until the members referred to in 
paragraph (2) are first appointed. 
(b) EXPERT REVIEW OF POLICIES, PLANS OF INSURANCE, AND 
RELATED MATERIAL.—Section 505 of the Federal Crop Insurance 
Act (7 U.S.C. 1505) is amended by adding at the end the following: 
"(e) EXPERT REVIEW OF POLICIES, PLANS OF INSURANCE, AND 
RELATED MATERIAL.— 
"(1) REVIEW BY EXPERTS.—The Board shall establish proce-
dures under which any policy or plan of insureuice, as well 
as any related materiEd or modification of such a policy or 
plan of insur£ince, to be offered under this title shall be subject 
to independent reviews by persons experienced as actuaries 
£uid in underwriting, as determined by the Board. 
"(2) REVIEW OF CORPORATION POLICIES AND PLANS.—Except 
as provided in paragraph (3), the Board shall contract with 
at least five persons to each conduct a review of the policy 
or plan of insurance, of whom— 
"(A) not more than one person may be employed by 
the Federal Grovernment; and 
"(B) at least one person must be designated by 
approved insurance providers pursuant to procedures deter-
mined by the Boeird. 
"(3) REVIEW OF PRIVATE SUBMISSIONS.—If the reviews under 
paragraph (1) cover a policy or plan of insurance, or any related 
material or modification of a policy or plan of insurance, sub-
mitted under section 508(h)— 
"(A) the Board shall contract with at least five persons 
to each conduct a review of the policy or pleui of insvirance, 
of whom— 
"(i) not more than one person may be employed 
by the Federsd Government; and 
PUBLIC LAW 106-224-^UNE 20, 2000 
114 STAT. 391 
"(ii) none may be employed by an approved insur-
ance provider; and 
"(B) each review must be completed and submitted Deadline. 
to the Board not later than 30 days prior to the end 
of the 120-day period described in section 508(h)(4)(D). 
"(4) CONSIDERATION OF REVIEWS.—The Board shall include 
reviews conducted under this subsection as part of the consider-
ation of any policy or plan or insurance, or any related material 
or modification of a policy or plan of insurance, proposed to 
be offered under this title. 
"(5) FUNDING OF REVIEWS.—Each contract to conduct a 
review under this subsection shall be funded from amounts 
made available under section 516(b)(2)(A)(ii). 
"(6) 
RELATION 
TO OTHER 
AUTHORITY.—The 
contract 
authority provided in this subsection is in addition to any 
other contracting authority that may be exercised by the Board 
under section 506(1).". 
SEC. 143. CONTRACTING FOR RATING OF PLANS OF INSURANCE. 
Section 507(c)(2) of the Federal Crop Insurance Act (7 U.S.C. 
1507(c)(2)) is amended— 
(1) by striking "actuarial, loss adjustment," and inserting 
"actuarial services, services relating to loss adjustment and 
rating plans of insurance,"; and 
(2) by inserting after "private sector" the following: "and 
to enable the Corporation to concentrate on regulating the 
provision of insurance under this title and evaluating new 
products and materials submitted under section 508(h) or 523". 
SEC. 144. ELECTRONIC AVAILABILITY OF CROP INSURANCE INFORMA-
TION. 
Section 508(a)(5) of the Federal Crop Insurance Act (7 U.S.C. 
1508(a)(5)) is amended— 
(1) by redesignating subparagraphs (A) and (B) as clauses 
(i) and (ii), respectively, and moving such clauses 2 ems to 
the right; 
(2) by striking "The Corporation" and inserting the fol-
lowing: 
"(A) AVAILABLE INFORMATION.—The Corporation"; and 
(3) by adding at the end the following: 
"(B) USE OF ELECTRONIC METHODS.— 
"(i) DISSEMINATION BY CORPORATION.—The Cor-
poration shall make the information described in 
subparagraph (A) available electronically to producers 
and approved insurance providers. 
"(ii) SUBMISSION TO CORPORATION.—To the max-
imum extent practicable, the Corporation shall allow 
producers and approved insurgmce providers to use 
electronic methods to submit information required by 
the Corporation.". 
SEC. 145. ADEQUATE COVERAGE FOR STATES. 
Section 508(a) of the Federal Crop Insurance Act (7 U.S.C. 
1508(a)) is amended by adding at the end the following: 
"(7) ADEQUATE COVERAGE FOR STATES.— 
114 STAT. 392 
PUBLIC LAW 106-224-^UNE 20, 2000 
"(A) DEFINITION OF ADEQUATELY SERVED.—In this para-
graph, the term 'adequately served' means having a partici-
pation rate that is at least 50 percent of the national 
average participation rate. 
"(B) REVIEW.—The Board shall review the policies and 
plans of insurance that are offered by approved insurance 
providers under this title to determine if each State is 
adequately served by the policies and plans of insurance. 
"(C) REPORT.— 
Deadline. 
"(i) IN GENERAL.—Not later than 30 days after 
completion of the review under subpgiragraph (B), the 
Board shall submit to Congress a report on the results 
of the review. 
"(ii) RECOMMENDATIONS.—The report shall include 
recommendations to increase participation in States 
that are not adequately served by the policies and 
plans of insurance.". 
SEC. 146. SUBMISSION OF POLICIES AND MATERIALS TO BOARD. 
(a) PERSONS AUTHORIZED TO SUBMIT.—Section 508(h)(1) of the 
Federal Crop Insurance Act (7 U.S.C. 1508(h)(1)) is amended by 
inserting sifter "a person" the following: "(including an approved 
insurance provider, a college or university, a cooperative or trade 
association, or any other person)". 
(b) 
SALE 
BY APPROVED 
INSURANCE 
PROVIDERS.—Section 
508(h)(3) of the Federal Crop Insurance Act (7 U.S.C. 1508(h)(3)) 
is amended in the first sentence by inserting after "for sale" the 
following: "by approved insurance providers". 
(c) 
GUIDELINES 
FOR SUBMISSION 
AND REVIEW.—Section 
508(h)(4) of the Federal Crop Insurance Act (7 U.S.C. 1508(h)(4)) 
is amended— 
(1) by striking subparagraph (A) and inserting the fol-
lowing: 
"(A) CONFIDENTIALITY.— 
"(i) IN GENERAL.—^A proposal submitted to the 
Bo£ird under this subsection (including any information 
generated from the proposal) shall be considered to 
be confidential commercial or financial information for 
the purposes of section 552(b)(4) of title 5, United 
States Code. 
"(ii) STANDARD OF CONFIDENTIALITY.—If informa-
tion concerning a proposal could be withheld by the 
Secretary under the standard for privileged or con-
fidential information pertaining to trade secrets £uid 
commercial or finsuicial information under section 
552(b)(4) of title 5, United States Code, the information 
shall not be released to the public. 
"(iii) APPLICATION.—This subparagraph shall apply 
with respect to a proposEil only during the period pre-
ceding any approval of the proposal by the Board."; 
(2) in subparagraph (B), by inserting "PERSONAL PRESEN-
TATION.—" before "The"; and 
(3) by striking subparagraphs (C) and (D) £ind inserting 
the following: 
"(C) NOTIFICATION OF INTENT TO DISAPPROVE.— 
Deadline. 
"(i) TiME PERIOD.—The Board shall provide an 
applicant with notification of intent to disapprove a 
PUBLIC LAW 106-224-^UNE 20, 2000 
114 STAT. 393 
proposal not later than 30 days prior to making the 
disapproval. 
"(ii) MODIFICATION OF APPLICATION.— 
"(I) AUTHORITY.—^An applicant that receives 
the notification may modify the application, and 
such application, as modified, shall be considered 
by the Board in the manner provided in subpara-
graph (D) within the 30-day period beginning on 
the date the modified application is submitted. 
"(II) TIME PERIOD.—Clause (i) shall not apply 
to the Board's consideration of the modified 
application. 
"(iii) EXPLANATION.—^Any notification of intent to 
disapprove a policy or other material submitted under 
this subsection shall be accompanied by a complete 
explanation as to the reasons for the Board's intention 
to deny approval. 
"(D) 
DETERMINATION TO APPROVE OR DISAPPROVE 
POLICIES OR MATERL\LS.— 
"(i) TIME PERIOD.—Not later than 120 days after 
Deadline. 
a policy or other material is submitted under this 
subsection, the Board shall meike a determination to 
approve or disapprove the policy or material, 
"(ii) EXPLANATION.—^Any determination by the 
Board to disapprove any policy or other material shall 
be accompanied by a complete explanation of the rea-
sons for the Board's decision to deny approval. 
"(iii) 
FAILURE 
TO MEET 
DEADLINE.—Notwith-
standing any other provision of this title, if the Board 
fails to make a determination within the prescribed 
time period, the submitted policy or other material 
shall be deemed approved by the Board for the initial 
reinsurance year designated for the policy or material, 
unless the Board and the applicant agree to an exten-
sion.", 
(d) TECHNICAL AMENDMENTS.—Section 508(h) of the Federal 
Crop Insurance Act (7 U.S.C. 1508(h)) is amended— 
(1) by striking paragraphs (6), (8), (9), and (10); and 
(2) by redesignating paragraph (7) as paragraph (6). 
SEC. 147. FUNDING. 
(a) AUTHORIZATION OF APPROPRIATIONS.—Section 516(a)(2) of 
the Federal Crop Insurance Act (7 U.S.C. 1516(a)(2)) is amended— 
(1) by striking "years—" and inserting "years the fol-
lowing:"; 
(2) by capitalizing the first letter of the first word of each 
subparagraph; 
(3) by striking "; and" at the end of subparagraph (A) 
and inserting a period; and 
(4) by adding at the end the following: 
"(C) Costs associated with the conduct of livestock and 
wild salmon pilot programs carried out under section 523, 
subject to the limitations in subsections (a)(3)(E)(ii) and 
(b)(10) of section 523. 
"(D) Costs associated with the reimbursement, con-
tracting, and partnerships for research and development 
under section 522.". 
114 STAT. 394 
PUBLIC LAW 106-224-^UNE 20, 2000 
(b) PAYMENT OF GENERAL CORPORATION EXPENSES FROM INSUR-
ANCE FUND.—Section 516(b)(1) of the Federal Crop Insurance Act 
(7 U.S.C. 1516(b)(1)) is amended— 
(1) by striking "including—" and inserting "including the 
following:"; 
(2) by capitalizing the first letter of the first word of each 
subparagraph; 
(3) by striking the semicolon at the end of subparagraph 
(A) and inserting a period; 
(4) by striking "; and" at the end of subparagraph (B) 
and inserting a period; £uid 
(5) by adding at the end the following: 
"(D) Costs associated with the conduct of livestock 
and wild salmon pilot programs carried out under section 
523, subject to the limitations in subsections (a)(3)(E)(ii) 
and (b)( 10) of section 523. 
"(E) Costs associated with the reimbursement, con-
tracting, and partnerships for research and development 
under section 522.". 
(c) EXPEDITED CONSIDERATION AND IMPLEMENTATION OF POLI-
CIES, PLANS OF INSURANCE, AND RELATED MATERIALS.—Section 
516(b)(2) of the Federal Crop Insurance Act (7 U.S.C. 1516(b)(2)) 
is amended— 
(1) by striking 
"RESEARCH AND DEVELOPMENT EX-
PENSES.—" and 
inserting 
"POLICY 
CONSIDERATION AND 
IMPLEMENTATION.—"; 
(2) in subparagraph (A)— 
(A) by striking "may pay from" and inserting "may 
use"; 
(B) by striking "research and development expenses 
of the Corporation"; and 
(C) by striking the period at the end and inserting 
the following: ", to pay the following: 
"(i) Costs associated with the consideration and 
implementation of policies, plans of insurance, and 
related materials submitted under section 508(h) or 
developed under section 522 or 523. 
"(ii) Costs to contract for the review of policies, 
pleuis of insurance, and related materials under section 
505(e) and to contract for other assistance in consid-
ering policies, plans of insurance, and related mate-
rials."; and 
(3) in subparagraph (B), by striking "research and develop-
ment". 
(d) DEPOSITS TO INSURANCE FUND.—Section 516(c)(1) of the 
Federal Crop Insurance Act (7 U.S.C. 1516(c)(1)) is amended— 
(1) by striking "income and" and inserting "income,"; and 
(2) by inserting ", and civil fines collected under section 
515(h)" after "(a)(2)". 
7 u s e 1506 note. 
SEC. 148. STANDARD REINSURANCE AGREEMENT. 
Notwithstsinding section 536 of the Agricultural Research, 
Extension, and Education Reform Act of 1998 (7 U.S.C. 1506 note; 
Public Law 105-185), the Federal Crop Insiu-ance Corporation may 
/ 
renegotiate the Standard Reinsurance Agreement once during the 
2001 through 2005 reinsurance years. 
PUBLIC LAW 106-224—JUNE 20, 2Q6O 
114 STAT. 395 
Subtitle E—Miscellaneous 
SEC. 161. LIMITATION ON REVENUE COVERAGE FOR POTATOES. 
Section 508(a)(3) of the Federal Crop Insurance Act (7 U.S.C. 
1508(a)(3)), as amended by section 123, is amended by adding 
at the end the following: 
"(C) LIMITATION ON REVENUE COVERAGE FOR POTA-
TOES.—No policy or plan of insurance provided under this 
title (including a policy or plan of insurance approved by 
the Board under subsection (h)) shall cover losses due 
to a reduction in revenue for potatoes except as covered 
under a whole farm policy or plan of insurance, as deter-
mined by the Corporation.". 
SEC. 162. CROP INSURANCE COVERAGE FOR COTTON AND RICE. 
Section 508(a) of the Federal Crop Insurance Act (7 U.S.C. 
1508(a)), as amended by 145, is amended by adding at the end 
the following: 
"(8) SPECIAL PROVISIONS FOR COTTON AND RICE.—Notwith-
standing any other provision of this title, beginning with the 
2001 crops of upland cotton, extra long staple cotton, and 
rice, the Corporation shall offer plans of insurance, including 
prevented plsmting coverage and replanting coverage, imder 
this title that cover losses of upland cotton, extra long staple 
cotton, and rice resulting from failure of irrigation water sup-
plies due to drought and ScJtwater intrusion.". 
SEC. 163. INDEMNITY PAYMENTS FOR CERTAIN PRODUCERS. 
(a) IN GENERAL.—Except as otherwise provided in this section, 
notwithstanding section 508(c)(5) of the Federal Crop Insurance 
Act (7 U.S.C. 1508(c)(5)), a producer that purchased a 1999 Crop 
Revenue Coverage policy for a commodity covered by Bulletin MGR-
99-004 (as in effect before being voided by subsection (d)) by the 
sales closing date prescribed in the actuarial documents in the 
county where the policy was sold shall receive an indemnity pay-
ment in accordance with the policy. 
(b) BASE AND HARVEST PRICES.—The base price and harvest 
price under the policy for a commodity described in subsection 
(a) shadl be determined in accordance with the Commodity Exchange 
Endorsement published by the Federal Crop Insurance Corporation 
on July 14, 1998 (63 Fed. Reg. 37829). 
(c) REINSURANCE.—Subject to subsection (b), notwithstanding 
section 508(c)(5) of the Federal Crop Insurance Act (7 U.S.C. 
1508(c)(5)), the Corporation shall provide reinsurance with respect 
to the policy in accordeince with the Standard Reinsurance Agree-
ment. 
(d) VOIDING OF BULLETIN.—Bulletin MGR-99-004, issued by 
the Administrator of the Risk Management Agency of the Depart-
ment of Agriculture, is void. 
(e) EFFECTIVE DATE.—This section takes effect on October 1, 
2000. 
SEC. 164. SENSE OF THE CONGRESS REGARDING THE FEDERAL CROP 
INSURANCE PROGRAM. 
It is the sense of the Congress that— 
114 STAT. 396 
PUBLIC LAW 106-224—JUNE 20, 2000 
(1) farmer-owned cooperatives play a valuable role in 
achieving the purposes of the Federal Crop Insurance Act (7 
U.S.C. 1501 et seq.) by— 
(A) encouraging producer participation in the Federal 
crop insurance program; 
(B) improving the delivery system for crop insurance; 
and 
(C) helping to develop new and improved insurance 
products; 
(2) the Risk Management Agency, through its regulatory 
activities, should encourage efforts by farmer-owned coopera-
tives to promote appropriate risk management strategies among 
their membership; 
(3) partnerships between approved insurance providers and 
farmer-owned cooperatives provide opportunity for agricultural 
producers to obtain needed insurance coverage on a more 
competitive basis and at a lower cost; 
(4) the Risk Management Agency is following an appro-
priate regulatory process to ensure the continued participation 
by farmer-owned cooperatives in the delivery of crop insurance; 
(5) efforts by the Risk Management Agency to finalize 
regulations that would incorporate the currently approved busi-
ness practices of cooperatives participating in the Federed crop 
insurance program should be commended; and 
Deadline. 
(6) not later than 180 days after the date of the enactment 
of this Act, the Federal Crop Insurance Corporation should 
complete promulgation of the proposed rule entitled "General 
Administrative Regulations; Premium Reductions; Payment of 
Rebates, Dividends, and Patronage Refunds; and Payments 
to Insured-Owned and Record-Controlling Entities", published 
by the Federal Crop Insurance Corporation on May 12, 1999 
(64 Fed. Reg. 25464), in a manner that— 
(A) effectively responds to comments received from the 
public during the rulemaking process; 
(B) provides an effective opportunity for farmer-owned 
cooperatives to assist the members of the cooperatives to 
obtain crop insurance and pgirticipate most effectively in 
the FederaJ crop insurance program; 
(C) incorporates the currently approved business prac-
tices of farmer-owned cooperatives peirticipating in the Fed-
eral crop insurance program; and 
(D) protects the interests of agricultural producers. 
SEC. 165. SENSE OF THE CONGRESS ON RURAL AMERICA, INCLUDING 
MINORITY AND LIMITED-RESOURCE FARMERS. 
It is the sense of the Congress that— 
(1) rural America, including minority and limited resource 
farmers, has not experienced this recent period of economic 
prosperity; 
(2) as a result of sustained low commodity prices, they 
face significant challenges, including— 
(A) a depressed farm economy; 
(B) a loss of business and jobs on rural main streets; 
(C) a reduction of capital investment; and 
(D) a loss of independent farmers; 
(3) Congress applauds Americ8in fsirmers and rural advo-
cates, including the organizers of the Rally for Rural America, 
PUBLIC LAW 106-224-JUNE 20, 2000 
114 STAT. 397 
for their efforts in calling this situation to the public's attention; 
and 
(4) Congress is committed to responding to the concerns 
of rural America and pledges to devote full attention to making 
necessary changes to Federal agricultural programs in a 
manner that will— 
(A) alleviate the agricultural price crisis; 
(B) ensure competitive markets by empowering farm 
families; 
(C) ensure that all farmers, including minority and 
limited-resource farmers, participate fully in the benefits 
of those programs; 
(D) invest in rural education and health; 
(E) increase resources for outreach and technical 
farming assistance; 
(F) conserve our natural resources for future genera-
tions; and 
(G) ensure a safe Eind secure food supply for all. 
Subtitle F—Effective Dates and 
Implementation 
SEC. 171. EFFECTIVE DATES. 
7 USC1501 note. 
(a) IN GENERAL.—Except as provided in subsection (b), this 
Act and the amendments made by this Act take effect on the 
date of the enactment of this Act. 
(b) EXCEPTIONS.— 
(1) 2001 FISCAL YEAR.—The following provisions and the 
amendments made by the provisions take effect on October 
1, 2000: 
(A) Subtitle C. 
(B) Section 146. 
(C) Section 163. 
(2) 2001 CROP YEAR.—The amendments made by the fol-
lowing provisions apply beginning with the 2001 crop of an 
agricultural commodity: 
(A) Subsections (a), (b), and (c) of section 101. 
(B) Section 102(a). 
(C) Subsections (a), (b), and (c) of section 103. 
(D) Section 104. 
(E) Section 105(b). 
(F) Section 108. 
(G) Section 109. 
(H) Section 162. 
(3) 2001 REINSURANCE YEAR.—The amendments made by 
the following provisions apply beginning with the 2001 reinsur-
ance year: 
(A) Section 101(d). 
(B) Section 102(b). 
(C) Section 103(d). 
SEC. 172. REGULATIONS. 
7 USC 1501 note. 
Not later than 120 days after the date of the enactment of Deadline, 
this Act, the Secretary of Agriculture shall promulgate regulations 
to carry out this Act smd the amendments made by this Act. 
114 STAT. 398 
PUBLIC LAW 106-224—JUNE 20, 2000 
7 u s e 1501 note. 
SEC. 173. SAVINGS CLAUSE. 
The Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) and 
section 196 of the Federal Agriculture Improvement and Reform 
Act of 1996 (7 U.S.C. 7333), as in effect on day before the date 
of the enactment of this Act, shall— 
(1) continue to apply with respect to the 1999 crop year; 
and 
(2) apply with respect to the 2000 crop year, to the extent 
the application of an amendment made by this Act is delayed 
under section 171(b) or by the terms of the amendment. 
TITLE II—AGRICULTURAL ASSISTANCE 
Subtitle A—Market Loss Assistance 
7 u s e 1421 note. 
SEC. 201. MARKET LOSS ASSISTANCE. 
(a) IN GENERAL.—The Secretary of Agriculture (referred to 
in this title as the "Secretary") shall use funds of the Commodity 
Credit Corporation to provide assistance in the form of a market 
loss assistance payment to owners and producers on a farm that 
are eligible for a final pa)rment for fiscal year 2000 under a produc-
tion flexibility contract for the farm under the Agricultured Market 
Transition Act (7 U.S.C. 7201 et seq.). 
(b) AMOUNT AND MANNER.—In providing payments under this 
section, the Secretary shall— 
(1) use the same contract payment rates as are used under 
section 802(b) of the Agriculture, Rural Development, Food 
and Drug Administration, and Related Agencies Appropriations 
Act, 2000 (7 U.S.C. 1421 note; Public Law 106-78); and 
(2) provide the payments in a manner that is consistent 
with section 802(c) of that Act. 
Deadline. 
(c) TIMING.—The Secretary sh£ill make the pa3rments required 
by this section not earlier than September 1, 2000, and not later 
than September 30, 2000. 
7 u s e 1421 note. 
SEC. 202. OILSEEDS. 
(a) IN GENERAL.—The Secretary shall use $500,000,000 of funds 
of the Commodity Credit Corporation to make payments to pro-
ducers of the 2000 crop of oilseeds that are eligible to obtain 
a marketing assistance loan under section 131 of the Agricultural 
Market Transition Act (7 U.S.C. 7231). 
(b) COMPUTATION.—^A pajrment to producers on a farm under 
this section for an oilseed shall be equal to the product obtained 
by multiplying— 
(1) a payment rate determined by the Secretary; 
(2) the acreage of the producers on the farm for the oilseed, 
as determined under subsection (c); and 
(3) the yield of the producers on the farm for the oilseed, 
as determined under subsection (d). 
(c) ACREAGE.— 
(1) IN GENERAL.—Except as provided in paragraph (2), the 
acreage of the producers on the farm for an oilseed under 
subsection (b)(2) shall be equal to the nxunber of acres planted 
to the oilseed by the producers on the farm during the 1997, 
1998, or 1999 crop year, whichever is greatest, as reported 
PUBLIC LAW 106-224^-JUNE 20, 2000 
114 STAT. 399 
by the producers on the farm to the Secretary (including any 
acreage reports that are filed late). 
(2) NEW PRODUCERS.—In the case of producers on a farm 
that planted acreage to an oilseed during the 2000 crop ye£ir 
but not the 1997, 1998, or 1999 crop year, the acreage of 
the producers for the oilseed under subsection (b)(2) shall be 
equ^ to the number of acres planted to the oilseed by the 
producers on the farm during the 2000 crop year, as reported 
by the producers on the farm to the Secretary (including any 
acreage reports that are filed late), 
(d) YIELD.— 
(1) SOYBEANS.—Except as provided in paragraph (3), in 
the case of soybeans, the jdeld of the producers on a farm 
under subsection (b)(3) shall be equal to the greatest of— 
(A) the average county yield per harvested acre for 
each of the 1995 through 1999 crop years, excluding the 
crop year with the highest jdeld per heuvested acre and 
the crop year with the lowest 3deld per heuvested acre; 
or 
(B) the actual yield of the producers on the farm for 
the 1997, 1998, or 1999 crop year. 
(2) OTHER OILSEEDS.—Except as provided in paragraph 
(3), in the case of oilseeds other than soybeans, the yield of 
the producers on a farm under subsection (b)(3) shall be equal 
to the greatest of— 
(A) the average national yield per harvested acre for 
each of the 1995 through 1999 crop ye£u*s, excluding the 
crop year with the highest yield per heirvested acre and 
the crop year with the lowest yield per harvested acre; 
or 
(B) the actual 3deld of the producers on the farm for 
the 1997, 1998, or 1999 crop year. 
(3) NEW PRODUCERS.—In the case of producers on a farm 
that planted acreage to an oilseed during the 2000 crop year 
but not the 1997, 1998, or 1999 crop year, the yield of the 
producers on a farm under subsection (b)(3) shall be equal 
to the greater of— 
(A) the average county yield per harvested acre for 
each of the 1995 through 1999 crop yeeirs, excluding the 
crop year with the highest 3aeld per harvested acre and 
the crop year with the lowest yield per harvested acre; 
or 
(B) the actual yield of the producers on the farm for 
the 2000 crop. 
(4) DATA SOURCE.—To the maximum extent available, the 
Secretary shall use data provided by the National Agricultural 
Statistics Service to carry out this subsection. 
SEC. 203. SPECIALTY CROPS. 
7 USC 1421 note. 
(a) REPLENISHMENT OF PERISHABLE AGRICULTURAL COMMOD-
ITIES ACT FUND.—Of the amoimt made available under section 
261(a)(2), $30,450,000 shall— 
(1) be deposited in the Perishable Agricultural Commodities 
Act Fund established by section 3(b)(5) of the Perishable Agri-
cultural Commodities Act, 1930 (7 U.S.C. 499c(b)(5)); 
(2) be merged with other amounts in the Perishable Agri-
cultural Commodities Act Fimd; and 
114 STAT. 400 
PUBLIC LAW 1 0 6 - 2 2 4 - J U N E 20, 2000 
(3) be available for the same purposes and for the same 
time period as other amounts in the Perishable Agricultureil 
Commodities Act Fund. 
(b) REPLENISHMENT OF TRUST FUNDS FOR SERVICES UNDER 
AGRICULTURAL MARKETING ACT OF 1946.—Of the amount made 
available under section 261(a)(2), $29,000,000 shall— 
(1) be deposited in the trust fund account established to 
cover the cost of inspection, certification, and identification 
services provided under section 203(h) of the Agricultural Mar-
keting Act of 1946 (7 U.S.C. 1622(h)); 
(2) be merged with other amounts in the trust fund account; 
and 
(3) be available for the same purposes and for the same 
time period as other amounts in the trust fund account. 
(c) INSPECTION SERVICES IMPROVEMENTS.—Of the amount made 
available under section 261(a)(2), $11,550,000 shall be used by 
the Secretary to improve the infrastructure and system used for 
inspecting fruits and vegetables, including improving— 
(1) the program used to train inspectors, including the 
establishment of an inspector training center; 
(2) the technological resources used by inspectors; 
(3) the use of digital imaging by inspectors; £ind 
(4) the office space and grading tables used by inspectors. 
(d) SURPLUS CROP PURCHASES.— 
(1) PURCHASES.—Of the amount made available under sec-
tion 261(a)(2), $200,000,000 shall be used by the Secretary 
to purchase specigdty crops that have experienced low prices 
during the 1998 or 1999 crop years, including apples, black-
eyed peas, cherries, citrus, cranberries, onions, melons, peaches, 
and potatoes. 
(2) DISPLACEMENT.—The Secretary shall ensure that pur-
chases of specialty crops under this subsection will not displace 
purchases by the Secretary under any other law. 
(e) GROWER COMPENSATION.— 
(1) COMPENSATION.—Of the eimount made available under 
section 261(a)(2), $25,000,000 shall be used by the Secretary 
to compensate— 
(A) growers covered by the Secretary's Declaration of 
Extraordinary Emergency published on March 2, 2000 (65 
Fed. Reg. 11280), reg£irding the plum pox virus; 
(B) growers for losses due to Pierce's disease; and 
(C) commercial producers for losses due to citrus 
canker. 
Deadline. 
(2) REPORT.—Not later than July 19, 2000, the Secretary, 
in coordination with the Inspector General of the Department 
of Agriculture, shall 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 that 
analyzes— 
(A) the economic losses to the produce industry as 
a result of edlegations of false inspection certificates pre-
pared by graders of the Department of Agriculture at Hunts 
Point Terminal Market, Bronx, New York; and 
(B) the restitution by the Secretary for persons dam-
aged as a result of losses described in subparagraph (A). 
(f) APPLE LOANS.— 
PUBLIC LAW 106-224-JUNE 20, 2000 
114 STAT. 401 
(1) REQUIREMENT.—The Secretary, acting through the 
Farm Service Agency, shall use funds of the Commodity Credit 
Corporation to make loans to producers of apples that are 
suffering economic loss as the result of low prices for apples. 
(2) TERM.—The term of a loan made under this subsection 
shall be not more than 3 years. 
(3) INTEREST RATE.—The interest rate for a loan made 
under this subsection shall be at a rate equal to the then 
current cost of money to the Government of the United States 
for loans of similar maturity. 
(4) SECURITY.—The Secretary may require a loan made 
under this subsection to be secured by real property or such 
other collateral as the Secretary considers appropriate and 
protects the interests of the Federal Government. 
(5) LIMITATION.—The cost of all loans made under this 
subsection shall not exceed $5,000,000. 
SEC. 204. OTHER COMMODITIES. 
7 USC 1421 note. 
(a) PEANUTS.— 
(1) IN GENERAL.—The Secretsiry shall use funds of the 
Commodity Credit Corporation to provide payments to pro-
ducers of quota peanuts or additional peanuts to partially com-
pensate the producers for continuing low commodity prices, 
and increasing costs of production, for the 2000 crop year. 
(2) AMOUNT.—The £imount of a pa3anent made to producers 
on a farm of quota peanuts or additional peanuts under para-
graph 
(1) shall be equal to the product obtained 
by 
multiplying— 
(A) the quantity of quota peanuts or additional peanuts 
produced or considered produced by the producers; and 
(B) a pa3Tnent rate equal to— 
(i) in the case of quota peanuts, $30.50 per ton; 
and 
(ii) in the case of additional pesuiuts, $16.00 per 
ton. 
(b) TOBACCO.— 
(1) DEFINITIONS.—In this subsection: 
(A) ELIGIBLE PERSON.—The term "eligible person" 
me£ins a person that owns or operates, or produces eligible 
tobacco on, a farm— 
(i) for which the quantity of quota of eligible 
tobacco allotted to the f£irm under part I of subtitle 
B of title III of the Agricultural Adjustment Act of 
1938 (7 U.S.C. 1311 et seq.) was reduced from the 
1999 crop year to the 2000 crop year; and 
(ii) that is used for the production of eligible 
tobacco during the 2000 crop year. 
(B) ELIGIBLE TOBACCO.—The term "ehgible tobacco" 
means each of the following kinds of tobacco: 
(i) Flue-cured tobacco, comprising types 11, 12, 
13, and 14. 
(ii) Fire-cured tobacco, comprising type 21. 
(iii) Burley tobacco, comprising type 31. 
(iv) Cigar-filler and cigar-binder tobacco, com-
prising types 42, 43, 44, 54, and 55. 
114 STAT. 402 
PUBLIC LAW 106-224—JUNE 20, 2000 
Effective date. 
Deadline. 
(2) PAYMENTS.—Effective beginning October 1, 2000, the 
Secretary shall use $340,000,000 of funds of the Commodity 
Credit Corporation to make payments to eligible persons. 
(3) ALLOCATION OF FUNDS AMONG STATES.—The funds made 
available for eligible persons under paragraph (2) shall be allo-
cated among States in the following dollar amounts: 
Alabama 
$100,000 
Arkansas 
$1,000 
Florida 
$2,500,000 
Georgia 
$13,000,000 
Indiana 
$5,400,000 
Kansas 
$23,000 
Kentucky 
$140,000,000 
Missouri 
$2,000,000 
North Carolina 
$100,000,000 
Ohio 
$6,000,000 
Oklahoma 
$1,000 
South Carolina 
$15,000,000 
Tennessee 
$35,000,000 
Virginia 
$19,000,000 
Wisconsin 
$675,000 
West Virginia 
$1,300,000. 
(4) ALLOCATION OF FUNDS AMONG FARMS IN A STATE.— 
The Secretary shall divide the amount allocated to a State 
under psiragraph (3) among farms in the State based on the 
quota of eligible tobacco avedlable to each farm of an eligible 
person for the 2000 crop year. 
(5) DIVISION OF FARM PAYMENTS AMONG ELIGIBLE PERSONS 
IN A STATE.—Not later than October 20, 2000, the Secretary 
shall divide amounts made available to farms in a State under 
paragraph (4) among eligible persons who are quota owners, 
quota lessees, and tobacco producers on farms in the State, 
and make pajrments to the eligible persons, on the basis of— 
(A) in the case of a State that is a party to the National 
Tobacco Grower Settlement Trust, the formula in the Trust 
used to allocate funds among quota owners, quota lessees, 
and tobacco producers on farms in the State, with such 
adjustments as the Secretary determines are necessary 
to enable the payments to be made by October 20, 2000; 
or 
(B) in the case of a State that is not a party to the 
National Tobacco Grower Settlement Trust, a formula 
established by the Secretary. 
(6) PAYMENTS TO ELIGIBLE PERSONS IN GEORGIA,—The Sec-
retary shall use the amount allocated to the State of Georgia 
under paragraph (3) to make payments to eligible persons 
in Georgia only if the State of Georgia agrees to use an equal 
amoimt (not to exceed $13,000,000) to make pajrments at the 
same time, or subsequently, to the same eligible persons in 
the same manner as provided for the Federal payment under 
paragraphs (4) and (5). 
(7) USE FOR ADMINISTRATIVE COSTS.—None of the funds 
made available under paragraphs (1) through (7) may be used 
to pay administrative costs inciured in carrying out those para-
graphs. 
(8) TRANSFER OF ALLOTMENTS.—Section 318 of the Agricul-
tural Adjustment Act of 1938 (7 U.S.C. 1314d) is amended 
by striking subsection (g) and inserting the following: 
PUBLIC LAW 106-224^^JUNE 20, 2000 
114 STAT. 403 
"(g) TEIANSFER OF ALLOTMENTS.—Under this section, the total 
acreage allotted to any farm after any transfer shall not exceed 
50 percent of the acreage of cropland on the farm.". 
(9) BURLEY TOBACCO INVENTORIES OF PRODUCER ASSOCIA-
TIONS.—Section 319(c)(3) of the Agricultural Adjustment Act 
of 1938 (7 U.S.C. 1314e(c)(3)) is amended— 
(A) in subparagraph (B), by striking "In" and inserting 
"Except as provided in subparagraph (D), in"; and 
(B) by adding at the end the following: 
"(D) NONAPPLICABILITY OF D
O
W
N
W
A
R
D ADJUSTMENT.— 
If the Secretary determines for any of the 2001 or subse-
quent crop years that noncommitted pool stocks of Burley 
tobacco are equal to or less than the reserve stock level 
established under this peu-agraph, subparagraph (B) shedl 
not apply to the crop ye£U" for which the determination 
is made and all subsequent crop years.", 
(10) 
LIMITATIONS ON BURLEY TOBACCO QUOTA ADJUST-
MENTS.— 
(A) CARRY FORWARD ADJUSTMENT.—Section 319(e) of 
the Agricultural Adjustment Act of 1938 (7 U.S.C. 1314e(e)) 
is Eunended in the fifth sentence— 
(i) by striking ": Provided, That" and inserting 
", except that (1)"; and 
(ii) by inserting before the period at the end the 
following: ", and (2) the aggregate of such increases 
for all farms for £uiy crop year may not exceed 10 
percent of the national basic quota for the preceding 
crop year". 
(B) LEASE AND TRANSFER OF QUOTA DUE TO NATURAL 
DISASTERS.—Section 319(k) of the Agricultural Adjustment 
Act of 1938 (7 U.S.C. 1314e(k)) is amended by adding 
at the end the following: 
"(3) LIMITATION.—The total quantity of quota leased or 
transferred to a farm during a crop year imder this subsection 
may not exceed 15 percent of the quota on the farm that 
existed prior to any such lease or transfer for the crop year.". 
(11) LEASE AND TRANSFER OF BURLEY TOBACCO QUOTA.— 
Section 319 of the Agricultural Adjustment Act of 1938 (7 
U.S.C. 1314e) is amended by striking subsection (1) and 
inserting the following: 
"(1) LEASE AND TRANSFER OF BURLEY TOBACCO QUOTA.— 
"(1) APPROVAL BY PRODUCERS.—Notwithstanding any other 
provision of this section, the Secretary may permit the lease 
and transfer of a Burley tobacco quota fi"om one farm in a 
State to any other farm in the State if, in a State-wide ref-
erendimi conducted by the Secretary, a majority of the active 
Burley tobacco producers voting in the referendum approve 
the use of that type of lease £ind treuisfer. 
"(2) APPLICATION.—This subsection shall apply only to the State listing. 
States of Tennessee, Ohio, Indieuia, Kentucky, and Virginia.". 
(12) RECORDKEEPING AND SALE OF BURLEY TOBACCO QUOTA 
AND ACREAGE.—Section 319 of the Agricultural Adjustment Act 
of 1938 (7 U.S.C. 1314e) is amended by adding at the end 
the following: 
"(m) 
COMPUTERIZED 
RECORDKEEPING SYSTEM FOR BURLEY 
TOBACCO QUOTA AND ACREAGE.— 
114 STAT. 404 
PUBLIC LAW 106-224—JUNE 20, 2000 
"(1) PRODUCER REPORTS.—Each person that owns a fEirm 
for which a Burley tobacco marketing quota is estabUshed 
under this Act shall smnually file with the Secretary a report 
describing the acreage planted to Burley tobacco on the farm. 
"(2) COMPUTERIZED RECORDKEEPING SYSTEM.—Not later 
than 180 days after the date of the enactment of this subsection, 
the Secretary shedl establish a computerized recordkeeping 
system that contains all information reported under paragraph 
(1) and related records, as determined by the Secretary, 
"(n) SALE OF BURLEY TOBACCO QUOTA.—Notwithstanding any 
other provision of this section, if a person that owns a fsirm for 
which a Burley tobacco meirketing quota is established under this 
Act sells all or part of the acreage on the farm to a buyer, the 
Secretary shall permit the seller and buyer of the acreage to deter-
mine the percentage of the quota that is transferred with the 
acreage sold.". 
(c) HONEY.— 
(1) IN GENERAL.—The Secretary shall use funds of the 
Commodity Credit Corporation to make available recourse loans 
to producers of the 2000 crop of honey on fair and reasonable 
terms and conditions, as determined by the Secretary. 
(2) LOAN RATE.—The loan rate for a loan under paragraph 
(1) shall be equal to 85 percent of the average price of honey 
during the 5-crop year period preceding the 2000 crop year, 
excluding the crop year in which the average price of honey 
was the highest and the crop year in which the average price 
of honey was the lowest in the period. 
(d) WOOL AND MOHAIR.— 
(1) IN GENERAL.—The Secretary shall use funds of the 
Commodity Credit Corporation to make payments to producers 
of wool, and producers of mohair, for the 1999 marketing year. 
(2) PAYMENT RATE.—The payment rate for payments made 
to producers under pgo-agraph (1) shall be equal to— 
(A) in the case of wool, 20 cents per pound; and 
(B) in the case of mohair, 40 cents per pound. 
(e) COTTONSEED.—The Secretary shall use $100,000,000 of 
funds of the Commodity Credit Corporation to provide assistance 
to producers and first-handlers of the 2000 crop of cottonseed. 
7 use 1421 note. 
SEC. 205. PAYMENTS IN LIEU OF LOAN DEFICIENCY PAYMENTS. 
(a) ELIGIBLE PRODUCERS.—Effective for the 2001 crop year, 
in the case of a producer that would be eligible for a loan deficiency 
payment under section 135 of the Agricultural Market Transition 
Act (7 U.S.C. 7235) for wheat, beirley, or oats, but that elects 
to use acreage planted to the wheat, barley, or oats for the grazing 
of livestock, the Secretary shall make a pajrment to the producer 
under this section if the producer enters into an agreement with 
the Secretary to forgo £iny other harvesting of the wheat, barley, 
or oats on that acreage. 
(b) PAYMENT AMOUNT.—The amount of a pajonent made to 
a producer on a farm under this section shall be equal to the 
amount determined by multiplying— 
(1) the loan deficiency pajonent rate determined under 
section 135(c) of the Agricultural Market Transition Act (7 
U.S.C. 7235(c)) in effect, as of the date of the agreement, 
for the county in which the farm is located; by 
(2) the payment quantity determined by multipl3dng— 
PUBLIC LAW 106-224-JUNE 20, 2000 
114 STAT. 405 
(A) the quantity of the grazed acreage on the farm 
with respect to which the producer elects to forgo har-
vesting of wheat, barley, or oats; and 
(B) the greater o
f
— 
(i) the established yield for the crop on the 
feirm; or 
(ii) the average county )deld per harvested acre 
of the crop, as determined by the Secretary. 
(c) TIME, MANNER, AND AVAILABILITY OF PAYMENT.— 
(1) TIME AND MANNER.—^A payment under this section shall 
be made at the same time and in the same manner as loan 
deficiency payments are made under section 135 of the Agricul-
tural Market Transition Act (7 U.S.C. 7235), except that the 
payment shall be made not later than September 30, 2001. 
(2) AVAILABILITY.—The Secretary shall establish an avail-
ability period for the payment authorized by this section that 
is consistent with the availability period for wheat, barley, 
and oats established by the Secretary for marketing assistance 
loans authorized by subtitle C of the Agricultural Market 
Transition Act (7 U.S.C. 7231 et seq.). 
(d) REGULATIONS.—The Secretary shall promulgate under sec-
tion 263 such regulations as are necessary to administer the pay-
ments authorized by this section in a fair and equitable manner 
with respect to producers of wheat and feed grains that do not 
receive a payment under this section. 
(e) BOUNDING.—The Secretary shall use funds of the Commodity 
Credit Corporation to carry out this section. 
SEC. 206. EXPANSION OF PRODUCERS ELIGIBLE FOR LOAN DEFI- 
7USC1421note. 
CIENCY PAYMENTS. 
(a) ELIGIBLE PRODUCERS.—Section 135(a) of the Agricultural 
Market Transition Act (7 U.S.C. 7235(a)) is amended— 
(1) by striking "to producers" and inserting "to— 
"(1) producers"; 
(2) by striking the period at the end and inserting "; and"; 
and 
(3) by adding at the end the following: 
"(2) effective only for the 2000 crop year, producers that, 
Edthough not eligible to obtain such a marketing assistance 
loEin under section 131, produce a contract commodity.". 
(b) CALCULATION.—Section 135(b)(2) of the Agricultural Market 
Transition Act (7 U.S.C. 7235(b)(2)) is amended by striking "that 
the producers" and all that follows through the period at the end 
and inserting the following: "produced by the eligible producers, 
excluding any quantity for which the producers obtain a loan under 
section 131.". 
(c) TRANSITION; BENEFICLVL INTEREST.—Section 135 of the Agri-
cultural M£irket Transition Act (7 U.S.C. 7235) is amended by 
adding at the end the following: 
"(e) TRANSITION.—^A payment to a producer eligible for a pay-
ment under subsection (a)(2) that harvested a commodity on or 
before the date that is 30 days after the promulgation of the 
regulations implementing subsection (a)(2) shall be determined as 
the date the producer lost beneficial interest in the commodity, 
as determined by the SecretEuy. 
"(f) BENEFICIAL INTEREST.—Subject to subsection (e), a producer 
shall be eligible for a payment under this section only if the producer 
114 STAT. 406 
PUBLIC LAW 106-224—JUNE 20, 2000 
has a beneficial interest in the commodity, as determined by the 
Secretary.". 
Subtitle B—Conservation 
16 use 3830 
SEC. 211. CONSERVATION ASSISTANCE. 
(a) FARMLAND PROTECTION.—For the purposes described in sec-
tion 388 of the Federal Agriculture Improvement and Reform Act 
of 1996 (16 U.S.C. 3830 note; Public Law 104-127), the Secretary 
shall use $10,000,000 of funds of the Commodity Credit Corporation 
to make pa3anents to— 
(1) any agency of any State or local government, or federally 
recognized Indian tribe, including fEirmland protection boards 
and land resource councils established under State law; and 
(2) any organization that— 
(A) is organized for, and at all times since the formation 
of the organization has been operated principally for, one 
or more of the conservation purposes specified in clause 
(i), (ii), or (iii) of section 170(h)(4)(A) of the Internal Rev-
enue Code of 1986; 
(B) is Ein organization described in section 501(c)(3) 
of that Code that is exempt from taxation under section 
501(a) of that Code; 
(C) is described in section 509(a)(2) of that Code; or 
(D) is described in section 509(a)(3) of that Code and 
is controlled by an organization described in section 
509(a)(2) of that Code. 
(b) SOIL AND WATER CONSERVATION ASSISTANCE.— 
(1) ESTABLISHMENT.—The Secretary shall use $40,000,000 
of funds of the Commodity Credit Corporation to provide finan-
cial assistance to farmers and ranchers to— 
(A) address threats to soil, water, and related natm^al 
resources, including grazing land, wetland, and wildlife 
habitat; 
(B) comply with Federal and State environmental laws; 
and 
(C) make benefLcisd, cost-effective cheinges to cropping 
systems, grazing management, memure, nutrient, pest, or 
irrigation management, land uses, or other measures 
needed to conserve and improve soil, water, and related 
natural resources. 
(2) TYPE OF ASSISTANCE.—^Assistance under this subsection 
may be made in the form of cost share payments or incentive 
payments, as determined by the Secretary. 
(3) AREAS.—The Secretary shall provide assistance under 
this subsection to areas that are not designated under section 
1230(c) of the Food Security Act of 1985 (16 U.S.C. 3830(c)). 
SEC. 212. CONDITION ON DEVELOPMENT OF LITTLE DARBY NATIONAL 
WILDLIFE REFUGE, OHIO. 
The Secretary of the Interior, acting through the Director of 
the United States Fish and Wildlife Service, shall prepare an 
environmental impact statement piu-suant to the National Environ-
mental Policy Act of 1969 (42 U.S.C. 4321 et seq.) before proceeding 
with any further development of the Little Darby National Wildlife 
Refuge in Madison and Union Counties, Ohio. 
PUBLIC LAW 106-224-^UNE 20, 2000 
114 STAT. 407 
Subtitle C—Research 
SEC. 221. CARBON CYCLE RESEARCH. 
(a) IN GENERAL.—Of the amount made available under section 
261(a)(2), the Secretary shall use $15,000,000 to provide a grant 
to the Consortium for Agricultural Soils Mitigation of Greenhouse 
Gases, acting through Kansas State University, to develop, analyze, 
and implement, through the land grant universities described in 
subsection (b), carbon cycle research at the national, regional, and 
local levels. 
(b) LAND GRANT UNIVERSITIES.—The leind grant universities 
referred to in subsection (a) are the following: 
(1) Colorado State University. 
(2) Iowa State University. 
(3) Kansas State University. 
(4) Michigan State University. 
(5) Montana State University. 
(6) Purdue University. 
(7) Ohio State University. 
(8) Texas A&M University. 
(9) University of Nebraska. 
(c) USE.—Land grant universities described in subsection (b) 
shall use funds made available under this section— 
(1) to conduct research to improve the scientific basis of 
using land management practices to increase soil c£irbon seques-
tration, including research on the use of new technologies to 
increase carbon cycle effectiveness, such as biotechnology and 
, nanotechnology; 
(2) to enter into partnerships to identify, develop, and 
evaluate agricultural best practices, including partnerships 
between— 
(A) Federal, State, or private entities; Eind 
(B) the Department of Agriculture; 
(3) to develop necessary computer models to predict eind 
assess the carbon cycle; 
(4) to estimate and develop mechanisms to measure carbon 
levels made available as a result of— 
(A) voluntary Federal conservation progremis; 
(B) private and Federal forests; and 
(C) other land uses; 
(5) to develop outreach programs, in coordination with 
Extension Services, to shsire information on carbon cycle and 
agricultural best practices that is useful to agricultural pro-
ducers; and 
(6) to collaborate with the Great Plains Regional Earth 
Science Application Center to develop a space-based carbon 
cycle remote sensing technology program to— 
(A) provide, on a near-continual basis, a real-time and 
comprehensive view of vegetation conditions; 
(B) assess and model agricultural carbon sequestration; 
and 
(C) develop commercial products. 
(d) ADMINISTRATIVE COSTS.—Not more than 3 percent of the 
funds made available under subsection (a) may be used by the 
Secretary to pay administrative costs incurred in carrying out this 
section. 
114 STAT. 408 
PUBLIC LAW 106-224-^UNE 20, 2000 
SEC. 222. TOBACCO RESEARCH FOR MEDICINAL PURPOSES. 
(a) ASSISTANCE.—Of the amount made available under section 
261(a)(2), the Secretary, acting through the Cooperative 
State 
ReseEirch, Education, and Extension Service, shall use $3,000,000 
to provide a grant jointly to Georgetown University and North 
Carolina State University to conduct research regarding the extrac-
tion and purification of proteins from genetically altered tobacco 
that may be used as a vaccine for cervical cancer. 
(b) RELATION TO OTHER LAW.—The Secretary may make the 
grant described in subsection (a) notwithstanding any general 
prohibition on the use of appropriated funds to carry out research 
related to the production, processing, or marketing of tobacco or 
tobacco products. 
SEC. 223. RESEARCH ON SOIL SCIENCE AND FOREST HEALTH MANAGE-
MENT. 
Of the amount made available under section 261(a)(2), the 
Secretary shgQl use $10,000,000 to provide a grant to the University 
of Nebraska in Lincoln, Nebraska, for laboratories and equipment 
for research on soil science and forest health and management. 
SEC. 224. RESEARCH ON WASTE STREAMS FROM LIVESTOCK PRODUC-
TION. 
Of the amount made available under section 261(a)(2), the 
Secretary shall use $3,500,000 to expand current research related 
to technologies for— 
(1) reducing, modifying, recycling, and using waste streams 
from livestock production; and 
(2) eliminating associated air, water, and soil quality 
problems. 
SEC. 225. IMPROVED STORAGE AND MANAGEMENT OF LIVESTOCK AND 
POULTRY WASTE. 
(a) ASSISTANCE.—Of the eimount made avedlable under section 
261(a)(2), the Secretary shall use $5,000,000— 
(1) to review and assess the actual or potential failure 
of waste storage and handling systems used in livestock or 
poultry production and the environmental damages associated 
with the failure of the systems; and 
(2) to study and demonstrate appropriate market-oriented 
mechanisms to assist livestock producers and poultry producers 
to prevent the failure of the systems and rectify environmental 
damages associated with the failure of the systems. 
Grants. 
(b) IMPLEMENTATION.—The Secretary shall ceirry out this sec-
Contracts, 
tion through grgoits, contracts, and cooperative agreements with 
livestock producers, poultry producers, associations of such pro-
ducers, and foundations supported by such producers. 
SEC. 226. ETHANOL RESEARCH PILOT PLANT. 
Of the amount made available under section 261(a)(2), the 
Secretary shall use $14,000,000 to provide a grant to the State 
of Illinois to complete the construction of a corn-based ethanol 
research pilot plant (Agreement No. 59-3601-7-078) at Southern 
Illinois University, Edwardsville, Illinois. 
SEC. 227. BIOINFORMATICS INSTITUTE FOR MODEL PLANT SPECIES. 
(a) 
ESTABLISHMENT AND PURPOSE.—The 
Secretary, 
acting 
through the Agricultural Research Service, may enter into a 
PUBLIC LAW 106-224-^JUNE 20, 2000 
114 STAT. 409 
cooperative agreement with the National Center for Genome 
Resources in Santa Fe, New Mexico, New Mexico State University, 
and Iowa State University, for the estabhshment and operation 
of an institute (to be known as the "Bioinformatics Institute for 
Model Plant Species") in Santa Fe, New Mexico, for the purpose 
of enhancing the accessibility and utility of genomic information 
for plant genetic research. 
(b) AUTHORIZATION OF AppROPRiATiONS.^There are authorized 
to be appropriated to carry out this section— 
(1) $3,000,000 for the purpose of establishing the Institute 
under subsection (a); and 
(2) such sums as may be necessary for each fiscal year 
to carry out the cooperative agreement authorized by subsection 
(a). 
Subtitle D—^Agricultural Marketing 
SEC. 231. VALUE-ADDED AGRICULTURAL PRODUCT MARKET DEVELOP- 
7 USC 1621 note. 
MENT GRANTS. 
(a) GRANT PROGRAM.— 
(1) ESTABLISHMENT AND PURPOSES.—Of the amount made 
available under section 261(a)(2), $15,000,000 shall be used 
by the Secretary to award competitive grants to eligible inde-
pendent producers (as determined by the Secretary) of value-
added agricultural commodities and products of agricultural 
commodities to assist an eligible producer— 
(A) to develop a business plan for viable marketing 
opportunities for a value-added agricultural commodity or 
product of an agricultural commodity; or 
(B) to develop strategies for the ventures that are 
intended to create marketing opportunities for the pro-
ducers. 
(2) AMOUNT OF GRANT.—The total amount provided under 
this subsection to a grant recipient may not exceed $500,000. 
(3) PRODUCER STRATEGIES.—^A producer that receives a 
grant under paragraph (1) shall use the grant— 
(A) to develop a business plan or perform a feasibility 
study to establish a viable marketing opportunity for a 
value-added agricultural commodity or product of an agri-
cultural commodity; or 
(B) to provide capital to establish alliances or business 
ventures that allow the producer to better compete in 
domestic or international markets. 
(b) 
AGRICULTURAL 
MARKETING 
RESOURCE 
CENTER 
PILOT 
PROJECT.— 
(1) ESTABLISHMENT.—Notwithstanding the limitation on 
grants in subsection (a)(2), the Secretary shall not use more 
than $5,000,000 of the funds made available under subsection 
(a) to establish a pilot project (to be known as the "Agricultural 
Marketing Resource Center") at an eligible institution described 
in paragraph (2) that will— 
(A) develop a resource center with electronic capabili-
ties to coordinate and provide to independent producers 
and processors (as determined by the Secretary) of vgdue-
114 STAT. 410 
PUBLIC LAW 106-224—JUNE 20, 2000 
added agricultural commodities and products of agricul-
tural commodities information regarding research, busi-
ness, legal, financial, or logistical assistance; and 
(B) develop a strategy to establish a nationwide market 
information and coordination system. 
(2) ELIGIBLE INSTITUTION.—TO be eligible to receive funding 
to establish the Agricultural Marketing Resource Center, an 
applicant shall demonstrate to the Secretary— 
(A) the capacity and technical expertise to provide 
the services described in paragraph (1)(A); 
(B) an established plan outlining support of the 
applicant in the agricultural community; and 
(C) the availability of resources (in cash or in kind) 
of definite vedue to sustain the Center following establish-
ment. 
(c) MATCHING FUNDS.—^A recipient of funds under subsection 
(a) or (b) shall contribute an amount of non-Federal funds that 
is at least equal to the amount of Federal funds received. 
(d) LIMITATION.—Funds provided under this section may not 
be used for— 
(1) planning, repair, rehabilitation, acquisition, or construc-
tion of a building or facility (including a processing facility); 
or 
(2) the purchase, rental, or installation of fixed equipment. 
Subtitle E—^Nutrition Programs 
SEC. 241. CALCULATION OF MINIMUM AMOUNT OF COMMODITIES FOR 
SCHOOL LUNCH REQUIREMENTS. 
(a) FISCAL YEAR 2000.—Notwithstanding £uiy other provision 
of law, in addition to any assisteuice provided under any other 
provision of law, of the amount made available under section 
261(a)(1), the Secretary shall use $34,000,000 in fiscal year 2000 
to purchase commodities of the type provided under section 6 of 
the Richard B. Russell National School Lunch Act (42 U.S.C. 1755) 
for distribution to schools participating in the school lunch progrgun 
established under that Act (42 U.S.C. 1751 et seq.). 
(b) FISCAL YEAR 2001.—Section 6(e)(1)(B) of the Richard B. 
Russell National School Lunch Act (42 U.S.C. 1755(e)(1)(B)) is 
amended by striking "2000" and inserting "2001". 
(c) ADDITIONAL COMMODITIES IN FISCAL YEAR 2001.—Notwith-
standing any other provision of law, in addition to £iny assistsuice 
provided under any other provision of law (including the amendment 
made by subsection (b)), of the amount made available under section 
261(a)(2), the Secretary shall use $21,000,000 in fiscal year 2001 
to purchase commodities of the type provided under section 6 of 
the Richard B. Russell National School Lunch Act (42 U.S.C. 1755) 
for distribution to schools participating in the school lunch program 
estabHshed under that Act (42 U.S.C. 1751 et seq.). 
(d) DISTRIBUTION TO SCHOOLS.—The commodities purchased 
under subsections (a) and (c) shall, to the maximum extent prac-
ticable, be distributed in the same mEimier as commodities are 
distributed under section 6 of the Richard B. Russell National 
School Lunch Act (42 U.S.C. 1755). 
PUBLIC LAW 106-224-^JUNE 20, 2000 
114 STAT. 411 
SEC. 242. SCHOOL LUNCH DATA. 
(a) LIMITED WAIVER OF CONFIDENTIALITY REQUIREMENT.— 
(1) IN GENERAL.—Section 9(b)(2)(C)(iii) of the Richard B. 
Russell National School Lunch Act (42 U.S.C. 1758(b)(2)(C)(iii)) 
is gunended— 
(A) in subclause (II), by striking "and" at the end; 
(B) in subclause (III), by striking the period at the 
end and inserting "; and"; and 
(C) by adding at the end the following: 
"(IV) a person directly connected with the 
administration of the State medicaid program 
under title XIX of the Social Security Act (42 
U.S.C. 1396 et seq.) or the State children's health 
insurance program under title XXI of that Act 
(42 U.S.C. 1397aa et seq.) solely for the purpose 
of identifying children eligible for benefits under, 
and enrolling children in, such programs, except 
that this subclause shall apply only to the extent 
that the State £uid the school food authority so 
elect.". 
(2) CERTIFICATION AND NOTIFICATION.—Section 9(b)(2)(C) 
of the Richard B. Russell National School Lunch Act (42 U.S.C. 
1758(b)(2)(C)) is amended by adding at the end the following: 
"(vi) 
REQUIREMENTS FOR WAIVER OF CONFIDEN-
TIALITY.—^A State that elects to exercise the option 
described in clause (iii)(IV) shgQl ensure that any school 
food authority acting in accordance with that option— 
"(I) has a written agreement with the State 
or local agency or agencies administering health 
insurance programs for children imder titles XIX 
and XXI of the Social Security Act (42 U.S.C. 1396 
et seq. and 1397aa et seq.) that requires the hegJth 
agencies to use the information obtained under 
clause (iii) to seek to enroll children in those health 
insurance programs; and 
"(II)(aa) notifies each household, the informa-
tion of which shsdl be disclosed under clause (iii), 
that the information disclosed will be used only 
to enroll children in health programs referred to 
in clause (iii)(IV); Euid 
"(bb) provides each parent or guardian of a 
child in the household with ein opportunity to elect 
not to have the information disclosed. 
"(vii) USE OF DISCLOSED INFORMATION.—^A person 
to which information is disclosed under clause (iii)(IV) 
shall use or disclose the information only as necessary 
for the purpose of enrolling children in hesdth programs 
referred to in clause (iii)(IV).". 
(b) DEMONSTRATION PROJECT.— 
(1) IN GENERAL.—Section 17 of the Child Nutrition Act 
of 1966 (42 U.S.C. 1786) is amended by adding at the end 
the following: 
"(r) DEMONSTRATION PROJECT RELATING TO USE OF THE W I C 
PROGRAM FOR IDENTIFICATION AND ENROLLMENT OF CHILDREN IN 
CERTAIN HEALTH PROGRAMS.— 
"(1) IN GENERAL.—In accordance with paragraph (2), the 
Secretary shall establish a demonstration project in at least 
114 STAT. 412 
PUBLIC LAW 106-224—JUNE 20, 2000 
20 local agencies in one State under which costs of nutrition 
services and administration (as defined in subsection (b)(4)) 
shall include the costs of identification of children eligible for 
benefits under, and the provision of enrollment assistance for 
children in— 
"(A) the State medicaid program under title XIX of 
the Social Security Act (42 U.S.C. 1396 et seq.); and 
"(B) the State children's health insurance program 
under title XXI of that Act (42 U.S.C. 1397aa et seq.). 
"(2) STATE-RELATED REQUIREMENTS.—The State in which 
a demonstration project is established under paragraph (1)— 
"(A) shall operate not fewer them 20 pilot site locations; 
"(B) as of the date of establishment of the demonstra-
tion project— 
"(i) with respect to the programs referred to in 
subparagraphs (A) and (B) of paragraph (1)— 
"(I) shall have in use a simplified application 
form with a length of not more than two pages; 
"(II) shall accept mail-in applications; and 
"(III) shall permit enrollment in the program 
in a variety of locations; and 
"(ii) shall have served as an original pilot site 
for the program under this section; and 
"(C) as of December 31,1998, shall have had— 
"(i) an infant mortedity rate that is above the 
national average; and 
"(ii) an overall rate of age-appropriate immuniza-
tions against vaccine-preventable diseases that is below 
80 percent. 
"(3) TERMINATION OF AUTHORITY.—The authority provided 
by this subsection terminates September 30, 2003.". 
(2) TECHNICAL AMENDMENTS.—Section 17 of the Child 
Nutrition Act of 1966 (42 U.S.C. 1786) is amended— 
(A) in subsection (b)(4), by striking "(4)" £ind gdl that 
follows through "means" and inserting "(4) 'Costs of nutri-
tion services and administration' or 'nutrition services and 
administration' means"; and 
(B) in subsection (h)(1)(A), by striking "costs incurred 
by State and local agencies for nutrition services and 
administration" and inserting "costs of nutrition services 
and administration incurred by State and local agencies". 
(3) GRANT FOR DEMONSTRATION PROJECT.—Section 12 of 
the Richard B. Russell National School Lunch Act (42 U.S.C. 
1760) is amended by adding at the end the following: 
"(p) GRANT FOR DEMONSTRATION PROJECT.— 
"(1) USE OF FUNDS FOR WIC DEMONSTRATION PROJECT.— 
"(A) IN GENERAL.—The Secretary shadl make grants 
of funds under this subsection to a State— 
"(i) for purposes that include carrying out the dem-
onstration project under section 17(r) of the Child 
Nutrition Act of 1966 (42 U.S.C. 1786(r)); and 
"(ii) for the purpose described in clause (i), in 
amounts not to exceed $10,000 for each fiscal year 
for each site in the State. 
"(B) APPORTIONMENT.—^A State that receives a grant 
under subparagraph (A) shall apportion the funds received 
PUBLIC LAW 106-224-JUNE 20, 2000 
114 STAT. 413 
to ensure that each site in the State receives not more 
than $10,000 for any fiscal year. 
"(2) EVALUATIONS OF DEMONSTRATION PROJECT.—The Sec-
retary shall conduct an evaluation of the demonstration project 
and grant program for identification and enrollment efforts 
funded under this subsection that include a determination of— 
"(A) the nimaber of children enrolled as a result of 
the enactment of this subsection; 
"(B) the income levels of the families of enrolled chil-
dren; 
"(C) the cost of identification and enrollment assistance 
services provided under the project or grant program; 
"(D) the effect on the caseloads of local agencies that 
carry out the special supplemental nutrition program for 
woman, infants, and children established under section 
17 of the Child Nutrition Act of 1966 (42 U.S.C. 1786); 
and 
"(E) such other factors as the Secretary determines 
to be appropriate. 
"(3) FUNDING.— 
"(A) IN GENERAL.—Out of any moneys in the Treasiuy 
not otherwise appropriated, the Secret£uy of the Treasury 
shall provide to the Secretary to carry out this subsection 
$1,000,000 for the period of fiscal years 2001 through 2004, 
to remain available luitil expended but not later than Sep-
tember 30, 2004. 
"(B) RECEIPT AND ACCEPTANCE.—The Secretary shall 
be entitled to receive the funds and shall accept the funds 
provided imder subparagraph (A), without further appro-
priation.". 
(c) EFFECTIVE DATE.—The amendments made by this section 
42 use 1758 
take effect on October 1, 2000. 
note. 
SEC. 243. CHILD AND ADULT CARE FOOD PROGRAM INTEGRITY. 
(a) DEFINITION OF INSTITUTION; EXCLUSION OF SERIOUSLY DEFI-
CIENT INSTITUTIONS.—Section 17(a) of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1766(a)) is amended— 
(1) by striking "(a) The Secretary" and inserting the 
following: 
"(a) GRANT AUTHORITY AND INSTITUTION ELIGIBILITY.— 
"(1) GRANT AUTHORITY.—The Secretary"; 
(2) by striking the second and third sentences and inserting 
the following: 
"(2) DEFINITION OF INSTITUTION.—In this section, the term 
'institution' means— 
"(A) any public or private nonprofit organization pro-
viding nonresidential child care or day care outside school 
hours for school children, including any child care center, 
settlement house, recreational center, Head Start center, 
and institution providing child care facilities for children 
with disabilities; 
"(B) any other private organization providing nonresi-
dential child care or day care outside school hours for 
school children for which the organization receives com-
pensation from amounts granted to the States under title 
XX of the Social Security Act (42 U.S.C. 1397 et seq.) 
(but only if the organization receives compensation under 
79-194 O - 00 - 15 : QL 3 Part 1 
114 STAT. 414 
PUBLIC LAW 106-224-^JUNE 20, 2000 
that title for at least 25 percent of its enrolled children 
or 25 percent of its licensed capacity, whichever is less); 
"(C) any public or private nonprofit organization acting 
as a sponsoring organization for one or more of the 
organizations described in subparagraph (A) or (B) or for 
an adult day CEire center (as defined in subsection (o)(2)); 
"(D) any other private organization acting as a spon-
soring organization for, eind that is part of the same legal 
entity as, one or more organizations that are— 
"(i) described in subpeiragraph (B); or 
"(ii) proprietary title XDC or title XX centers (as 
defined in subsection (o)(2)); 
"(E) any public or private nonprofit orgsinization acting 
as a sponsoring organization for one or more family or 
group day care homes; and 
"(F) any emergency shelter (as defined in subsection 
(t))."; 
(3) by striking "Except as provided in subsection (r)," and 
inserting the following: 
"(3) AGE LIMIT.—Except as provided in subsection (r),"; 
(4) by striking "The Secretairy may establish separate 
guidelines" and inserting the following: 
"(4) ADDITIONAL GUIDELINES.—The Secretary may establish 
sepsirate guidelines"; 
(5) by striking "For purposes of determining" and all that 
follows through "an institution" and inserting the following: 
"(5) LICENSING.—In order to be eligible, eui institution"; 
and 
(6) by striking "standards; and" and inserting "standards."; 
(7) by striking "(2) no institution" and inserting the fol-
lowing: 
"(6) ELIGIBILITY CRITERIA.—No institution"; and 
(8) in paragraph (6) (as so designated)— 
(A) in subparagraph (B), by inserting ", or has not 
been determined to be ineligible to participate in Einy other 
publicly funded program by reason of violation of the 
requirements of the program" before ", for a period"; 
(B) in subparagraph (C)— 
(i) by inserting "(i)" after "(C)"; and 
(ii) by adding at the end the following: 
"(ii) in the case of a sponsoring organization, the 
org£uiization shedl employ £in appropriate number of moni-
toring personnel based on the number and characteristics 
of child care centers and family or group day care homes 
sponsored by the organization, as approved by the State 
(in accordance with regulations promulgated by the Sec-
retary), to ensure effective oversight of the operations of 
the child care centers £uid family or group day care homes; 
and"; 
(C) in subparagraph (D), by striking the period and 
inserting a semicolon; and 
(D) by adding at the end the following: 
"(E) in the case of a sponsoring organization, the 
organization has in effect a policy that restricts other 
employment by employees that interferes with the respon-
sibilities and duties of the employees of the organization 
with respect to the progrEim; and 
PUBLIC LAW 106-224^-JUNE 20, 2000 
114 STAT. 415 
"(F) in the case of a sponsoring organization that 
applies for initial participation in the progr2im on or eifter 
the date of the enactment of this subparagraph and that 
operates in a State that requires such institutions to be 
bonded under State law, regulation, or policy, the institu-
tion is bonded in accordance with such law, regulation, 
or policy.", 
(b) INSTITUTION APPROVAL AND APPLICATIONS.— 
(1) IN GENERAL.—Section 17(d) of the Richard B, Russell 
National School Lunch Act (42 U.S.C. 1766(d)) is amended 
by striking the subsection designation and all that follows 
through the end of paragraph (1) and inserting the following: 
"(d) INSTITUTION APPROVAL AND APPLICATIONS.— 
"(1) INSTITUTION APPROVAL.— 
"(A) ADMINISTRATIVE CAPABILITY.—Subject to subpara-
graph (B) and except as provided in subparagraph (C), 
the State agency shall approve an institution that meets 
the requirements of this section for participation in the 
child and adult care food program if the State agency 
determines that the institution— 
"(i) is financially viable; 
"(ii) is administratively capable of operating the 
program (including whether the sponsoring organiza-
tion has business experience and management pleuis 
appropriate to operate the program) described in the 
application of the institution; and 
"(iii) has internal controls in effect to ensure pro-
gram accountability. 
"(B) APPROVAL OF PRIVATE INSTITUTIONS.— 
"(i) IN GENERAL.—In addition to the requirements 
established by subparagraph (A) and subject to clause 
(ii), the State agency shall approve a private institution 
that meets the requirements of this section for partici-
pation in the child and adult care food program only 
if— 
"(I) the State agency conducts a satisfactory 
visit to the institution before approving the partici-
pation of the institution in the program; and 
"(II) the institution— 
"(aa) has tax exempt status luider the 
Internal Revenue Code of 1986; 
"(bb) is operating a FedergJ program 
requiring nonprofit status to participate in the 
program; or 
"(cc) is described in subsection (a)(2)(B). 
"(ii) EXCEPTION FOR FAMILY OR GROUP DAY CARE 
HOMES,—Clause (i) shall not apply to a family or group 
day care home. 
"(C) EXCEPTION FOR CERTAIN SPONSORING ORGANIZA-
TIONS.— 
"(i) IN GENERAL.—The State agency may approve 
an eligible institution acting as a sponsoring organiza-
tion for one or more family or group day care homes 
or centers that, at the time of application, is not partici-
pating in the child and adult care food program only 
if the State agency determines that— 
114 STAT. 416 
PUBLIC LAW 106-224-JUNE 20, 2000 
"(I) the institution meets the requirements 
established by subparagraphs (A) and (B); and 
"(II) the p£ui;icipation of the institution will 
help to ensure the delivery of benefits to otherwise 
unserved family or group day c£U"e homes or cen-
ters or to unserved children in an area. 
"(ii) CRITERIA FOR SELECTION.—The State agency 
shall establish criteria for approving an eligible institu-
tion acting as a sponsoring organization for one or 
more family or group day care homes or centers that, 
at the time of application, is not participating in the 
child and adult ceire food progrgim for the purpose 
of determining if the participation of the institution 
will help ensure the delivery of benefits to otherwise 
unserved family or group day care homes or centers 
or to unserved children in an area. 
Deadline. 
"(D) NOTIFICATION TO APPLICANTS.—Not l a t e r t h a n 3 0 
days after the date on which an applicant institution files 
a completed application with the State agency, the State 
agency shall notify the applicant institution whether the 
institution has been approved or disapproved to participate 
in the child and adult care food program.". 
(2) SITE VISITS.—Section 17(d)(2)(A) of the Richard B. 
Russell National School Lunch Act (42 U.S.C. 1766(d)(2)(A)) 
is amended— 
(A) in clause (i), by striking "; and" and inserting 
a semicolon; 
(B) by redesignating clause (ii) as clause (iii); and 
(C) by inserting after clause (i) the following: 
"(ii)(I) requires periodic unannounced site visits at not less 
than 3-year intervals to sponsored child care centers and family 
or group day care homes to identify and prevent management 
deficiencies and fraud £Uid abuse under the program; 
"(II) requires at least one scheduled site visit each year 
to sponsored child care centers £uid family or group day care 
homes to identify and prevent management deficiencies and 
fraud and abuse under the program and to improve program 
operations; and 
"(III) requires at least one scheduled site visit at not less 
than 3-year intervals to sponsoring organizations and nonspon-
sored child care centers to identify and prevent meuiagement 
deficiencies and fraud and abuse under the program and to 
improve program operations; and". 
(3) CONFORMING AMENDMENT.—Section 17(d)(2)(B) of the 
Richard B. Russell National School Lunch Act (42 U.S.C. 
1766(d)(2)(B)) is amended by striking "subsection (a)(1)" and 
inserting "subsection (a)(5)". 
(4) PROGRAM INFORMATION.— 
(A) IN GENERAL.—Section 17(d) of the Richard B. 
Russell National School Lxmch Act (42 U.S.C. 1766(d)) 
is amended by adding at the end the following: 
"(3) PROGRAM INFORMATION.— 
"(A) IN GENERAL.—On enrollment of a child in a spon-
sored child care center or family or group day care home 
participating in the program, the center or home (or its 
sponsoring organization) shall provide to the child's parents 
or guardians— 
PUBLIC LAW 106-224-JUNE 20, 2000 
114 STAT. 417 
Deadline. 
42 use 1766 
note. 
"(i) information that describes the program and 
its benefits; and 
"(ii) the name and telephone nvmaber of the spon-
soring organization of the center or home £ind the 
State agency involved in the operation of the program. 
"(B) FORM.—The information described in subpara-
graph (A) shall be in a form and, to the maximima extent 
practicable, language easily understandable by the child's 
parents or guardians.". 
(B) EFFECTIVE DATE.—In the case of a child that is 
enrolled in a sponsored child care center or family or group 
day care home participating in the child and adult care 
food program under section 17 of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1766) before the 
date of the enactment of this Act, the center or home 
shall provide information to the child's parents or guard-
ians piu"suant to section 17(d)(3) of that Act, as added 
by subparagraph (A), not later than 90 days after the 
date of the enactment of this Act. 
(5) ALLOWABLE ADMINISTRATIVE EXPENSES FOR SPONSORING 
ORGANIZATIONS.—Section 17(d) of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1766(d)), as amended 
by paragraph (4)(A), is amended by adding at the end the 
following: 
"(4) ALLOWABLE ADMINISTRATIVE EXPENSES FOR SPONSORING 
ORGANIZATIONS.—In consultation with State agencies and spon-
soring organizations, the Secretary shall develop, and provide 
for the dissemination to State agencies and sponsoring 
organizations of, a list of allowable reimbursable administrative 
expenses for sponsoring organizations under the program.". 
(c) TERMINATION OR SUSPENSION OF PARTICIPATING ORGANIZA-
TIONS.—Section 17(d) of the Richard B. Russell National School 
Limch Act (42 U.S.C. 1766(d)), as amended by subsection (b)(5), 
is amended by adding at the end the following: 
"(5) 
TERMINATION 
OR 
SUSPENSION 
OF PARTICIPATING 
ORGANIZATIONS.— 
"(A) IN GENERAL.—The Secretary shall establish proce- Procedures. 
dures for the termination of participation by institutions 
and family or group day care homes under the program. 
"(B) STANDARDS.—Procedures established pursuant to 
subparagraph (A) shall include standards for terminating 
the participation of an institution or family or group day 
care home that— 
"(i) engages in tmlawful practices, falsifies informa-
tion provided to the State agency, or conceals a 
criminal background; or 
"(ii) substEuitially fails to fulfill the terms of its 
agreement with the State agency. 
"(C) 
CORRECTIVE 
ACTION.—Procedures 
established 
pursuant to subpeiragraph (A)— 
"(i) shall require an entity described in subpara-
graph (B) to undertake corrective action; and 
"(ii) may require the immediate suspension of oper-
ation of the program by an entity described in subpara-
graph (B), without the opportunity for corrective action, 
if the State agency determines that there is imminent 
threat to the health or safety of a participant at the 
114 STAT. 418 
PUBLIC LAW 106-224-^JUNE 20, 2000 
entity or the entity engages in any activity that poses 
a threat to pubUc health or safety. 
"(D) HEARING.—^An institution or family or group day 
care home shall be provided a fair hearing in accordance 
with subsection (e)(1) prior to any determination to termi-
nate participation by the institution or family or group 
day c£ire home under the program. 
Records. 
"(E) LiST OF DISQUALIFIED INSTITUTIONS AND INDIVID-
UALS.— 
"(i) IN GENERAL.—The Secretary shall maintain 
a list of institutions, sponsored family or group day 
care homes, and individuals that have been terminated 
or otherwise disqualified from participation in the pro-
gram. 
"(ii) AVAILABILITY.—The Secretary shall make the 
list available to State agencies for use in approving 
or renewing applications by institutions, sponsored 
family or group day ceire homes, and individuaJs for 
participation in the program.". 
(d) 
RECOVERY OF AMOUNTS FROM 
INSTITUTIONS.—Section 
17(f)(1) of the Richard B. Russell National School Limch Act (42 
U.S.C. 1766(f)(1)) is amended— 
(1) by striking "(f)(1) Fimds paid" £md inserting the fol-
lowing: 
"(f) STATE DISBURSEMENTS TO INSTITUTIONS.— 
"(1) IN GENERAL.— 
"(A) REQUIREMENT.—Funds paid"; and 
(2) by adding at the end the following: 
"(B) FRAUD OR ABUSE.— 
"(i) IN GENERAL.—The State may recover funds 
disbursed under subpsu'agraph (A) to an institution 
if the State determines that the institution has engaged 
in fraud or abuse with respect to the program or has 
submitted an invalid claim for reimbursement. 
"(ii) PAYMENT.—^Amounts recovered under clause 
(i)— 
"(I) may be paid by the institution to the State 
over a period of one or more years; and 
"(II) shall not be pEud from funds used to pro-
vide meals and supplements. 
"(iii) HEARING.—An institution shall be provided 
a fair hearing in accordance with subsection (e)(1) prior 
to any determination to recover funds under this 
subparagraph.". 
(e) LIMITATION ON ADMINISTRATIVE EXPENSES FOR CERTAIN 
SPONSORING ORGANIZATIONS.—Section 17(f)(2) of the Richard B. 
Russell National School Lunch Act (42 U.S.C. 1766(f)(2)) is amended 
by adding at the end the following: 
"(C) LIMITATION ON ADMINISTRATIVE EXPENSES FOR 
CERTAIN SPONSORING ORGANIZATIONS.— 
"(i) IN GENERAL.—Except as provided in clause 
(ii), a sponsoring organization of a day care center 
may reserve not more than 15 percent of the funds 
provided under peu-agraph (1) for the administrative 
expenses of the organization. 
"(ii) WAIVER.—^A State may waive the requirement 
in clause (i) with respect to a sponsoring organization 
PUBLIC LAW 106-224-^JUNE 20, 2000 
114 STAT. 419 
if the organization provides justification to the State 
that the organization requires funds in excess of 15 
percent of the funds provided under paragraph (1) 
to pay the administrative expenses of the organiza-
tion.". 
(f) LIMITATIONS ON ABILITY OF FAMILY OR GROUP DAY CARE 
HOMES TO TRANSFER SPONSORING ORGANIZATIONS.—Section 17(f)(3) 
of the Richard B. Russell National School Lunch Act (42 U.S.C. 
1766(f)(3)) is amended by striking subparagraph (D) and inserting 
the following: 
"(D) LIMITATIONS ON ABILITY OF FAMILY OR GROUP DAY 
CARE HOMES TO TRANSFER SPONSORING ORGANIZATIONS.— 
"(i) IN GENERAL.—Subject to clause (ii), a State 
agency shall limit the ability of a family or group 
day care home to transfer from a sponsoring organiza-
tion to another sponsoring organization more fre-
quently than once a year. 
"(ii) Gk)OD CAUSE.—The State agency may permit 
or require a family or group day care home to transfer 
from a sponsoring organization to another sponsoring 
organization more frequently than once a year for good 
cause (as determined by the State agency), including 
circumstances in which the sponsoring organization 
of the family or group day care home ceases to partici-
pate in the child and adult care food program.". 
(g) STATE-WIDE DEMONSTRATION PROJECTS INVOLVING PRIVATE 
FOR-PROFIT ORGANIZATIONS THAT PROVIDE NONRESIDENTIAL DAY 
CARE SERVICES.— 
(1) IN GENERAL.—Section 17(p) of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1766(p)) is amended— 
(A) in the first sentence of paragraph (1), by striking 
"2 statewide demonstration projects" and inserting "State-
wide demonstration projects in three States"; and 
(B) in paragraph (3)— 
(i) by inserting "in" after "subsection"; 
(ii) in subparagraph (A), by striking "and" at the 
end; 
(iii) in subparagraph (B), by striking the period 
at the end and inserting "; and"; and 
(iv) by adding at the end the following: 
"(C) one other State— 
"(i) with fewer than 60,000 children below 5 yeeirs 
of age; 
"(ii) that serves more than the national average propor-
tion of children potentially eligible for assistance provided 
under the Child Care and Development Fund (as indicated 
in data published by the Department of Health and Htraian 
Services in October 1999); 
"(iii) that exempts all families from cost sharing 
requirements under progrEims funded by the Child Care 
and Development Fund; and 
"(iv) in which State spending represents more than 
50 percent of total expenditures made under the Child 
Care and Development Fimd.". 
(2) EFFECTIVE DATE.—The Secretary may carry out dem- 
42 USC 1766 
onstration projects in the State described in section 17(p)(3)(C) note-
of the RichEu*d B. Russell National School Lunch Act, as added 
114 STAT. 420 
PUBLIC LAW 106-224-^JUNE 20, 2000 
by paragraph (l)(B)(iv), beginning not earlier thgin October 
1, 2001. 
(h) TECHNICAL AND TRAINING ASSISTANCE FOR IDENTIFICATION 
A
N
D PREVENTION OF FRAUD AND ABUSE.—Section 17(q) of the 
Richard B. Russell National School Lunch Act (42 U.S.C. 1766(q)) 
is amended— 
(1) by redesignating paragraph (2) as paragraph (3); and 
(2) by inserting after paragraph (1) the following: 
"(2) TECHNICAL AND TRAINING ASSISTANCE FOR IDENTIFICA-
TION AND PREVENTION OF FRAUD AND ABUSE.—^As part of 
training and technical assistsince provided under paragraph 
(1), the Secretary shedl provide training on a continuous basis 
to State agencies, and shall ensure that such training is pro-
vided to sponsoring organizations, for the identification and 
prevention of fraud and abuse under the program and to 
improve management of the program.". 
(i) PROGRAM FOR AT-RISK SCHOOL CHILDREN.—Section 17(r) 
of the Richard B. Russell National School Lunch Act (42 U.S.C. 
1766(r)) is amended— 
(1) in paragraph (2), by inserting "meals or" before "supple-
ments"; 
(2) in pEiragraph (4)— 
(A) in the heading, by striking "SUPPLEMENT" and 
inserting "MEAL AND SUPPLEMENT"; 
(B) in subpEU-agraph (A)— 
(i) by striking "only for" and all that follows 
through "(i) a supplement" and inserting "only for one 
meal per child per day and one supplement per child 
per day"; 
(ii) by striking "; and" £Uid inserting a period; 
and 
(iii) by striking clause (ii); 
(C) in subparagraph (B), by striking "RATE.—^A supple-
ment" and inserting the following: "RATES.— 
"(i) MEALS.—^A meal sheJl be reimbursed under 
this subsection at the rate established for fi*ee meals 
under subsection (c). 
"(ii) SUPPLEMENTS.—^A supplement"; and 
(D) in subpgu-agraph (C), by insertinig "meal or" before 
"supplement"; and 
(3) by adding at the end the following: 
"(5) LIMITATION.—The Secretary shall limit reimbursement 
under this subsection for meads served under a program to 
institutions located in six States, of which four States shall 
be Pennsylvania, Missouri, Delaware, £uid Michigan and two 
States shall be approved by the Secretary through a competitive 
application process.". 
(j) WITHHOLDING OF FUNDS FOR FAILURE TO PROVIDE SUFFI-
CIENT TRAINING, TECHNICAL ASSISTANCE, AND MONITORING.—Sec-
tion 7(a)(9)(A) of the Child Nutrition Act of 1966 (42 U.S.C. 
1776(a)(9)(A)) is amended by inserting after "the Richard B. Russell 
National School Limch Act (42 U.S.C. 1751 et seq.)" the following: 
"(including any requirement to provide sufficient training, technical 
assist£ince, and monitoring of the child auid adult care food program 
under section 17 of that Act (42 U.S.C. 1766))". 
PUBLIC LAW 106-224-^JUNE 20, 2000 
114 STAT. 421 
SEC. 244. ADJUSTMENTS TO WIC PROGRAM. 
(a) DEFINITION.—Section 17(b) of the Child Nutrition Act of 
1966 (42 U.S.C. 1786(b)) is amended by adding at the end the 
following: 
"(21) REMOTE 
INDIAN OR NATIVE VILLAGE.—The term 
'remote Indian or Native village' means an Indian or Native 
village that— 
"(A) is located in a rural area; 
"(B) has a population of less than 5,000 inhabitants; 
and 
"(C) is not accessible year-around by means of a public 
road (as defined in section 101 of title 23, United States 
Code).". 
(b) COST-OF-LIVING ALLOWANCES FOR MEMBERS OF UNIFORMED 
SERVICES.—Section 17(d)(2)(B) of the Child Nutrition Act of 1966 
(42 U.S.C. 1786(d)(2)(B)) is amended— 
(1) by striking "income any" and inserting "income— 
"(i) any"; 
(2) by striking "quarters" and inserting "housing"; 
(3) by striking the period at the end and inserting "; £ind"; 
and 
(4) by adding at the end the following: 
"(ii) any cost-of-living allowance provided under section 
405 of title 37, United States Code, to a member of a imiformed 
service who is on duty outside the continental United States.". 
(c) PROOF OF RESIDENCY.—Section 17(d)(3) of the Child Nutri-
tion Act of 1966 (42 U.S.C. 1786(d)(3)) is amended by adding at 
the end the following: 
"(F) PROOF OF RESIDENCY.—^An individual residing in 
a remote Indian or Native village or an individual served 
by £in Indian tribal orgeuiization and residing on a reserva-
tion or pueblo may, under standards established by the 
Secretary, establish proof of residency under this section 
by providing to the State agency the mailing address of 
the individual and the name of the remote Indian or Native 
village.". 
(d) ADJUSTMENT OF GRANT.—Section 17(h)(1)(B) of the Child 
Nutrition Act of 1966 (42 U.S.C. 1786(hXl)(B)) is amended— 
(1) in clause (i), by striking "the fiscal year 1987" and 
inserting "the preceding fiscal year"; and 
(2) in clause (ii)— 
(A) by striking "the fiscal yeeir 1987" and inserting 
"the preceding fiscal year"; and 
(B) by striking subclause (I) and inserting the fol-
lowing: 
"(I) the value of the index for State and loced government 
pm-chases, as published by the Bureau of Economic Analysis 
of the Department of Commerce, for the 12-month period ending 
June 30 of the second preceding fiscal year; and". 
(e) ALLOCATION OF FUNDS.—Section 17(h)(5) of the Child Nutri-
tion Act of 1966 (42 U.S.C. 1786(h)(5)) is amended by adding at 
the end the following: 
"(D) REMOTE INDIAN OR NATIVE VILLAGES.—For non-
contiguous States containing a significant number of 
remote Indian or Native villages, a State agency may con-
vert amounts allocated for food benefits for a fiscal year 
to the costs of nutrition services and administration to 
114 STAT. 422 
PUBLIC LAW 106-224—JUNE 20, 2000 
the extent that the conversion is necessary to cover 
expenditures incurred in providing services (including the 
full cost of air transportation and other transportation) 
to remote Indiein or Native villages and to provide 
breastfeeding support in remote Indian or Native villages.". 
42 use 1786 
(f) EFFECTIVE DATES.— 
note. 
(1) IN GENERAL.—Except as provided in paragraph (2), the 
amendments made by this section take effect on the date of 
the enactment of this Act. 
(2) ALLOCATION OF FUNDS.—The amendments made by sub-
sections (d) and (e) take effect on October 1, 2000. 
Subtitle F—Other Programs 
Texas. 
SEC. 251. AUTHORITY TO PROVTOE LOAN IN CONNECTION WITH BOLL 
WEEVIL ERADICATION. 
(a) LOAN AUTHORITY.—Notwithstanding any other provision of 
law, the Secreteiry, acting through the Farm Service Agency, shall 
use $10,000,000 of funds of the Commodity Credit Corporation 
to make a loan to the Texas Boll Weevil Eradication Foundation, 
Inc., to enable the Foundation to retire certain debt associated 
with boll weevil eradication zones which have ended their psirticipa-
tion, in whole or in part, in the federally funded boll weevil eradi-
cation program. 
(b) REPAYMENT TERMS AND CONDITIONS.—The loan provided 
under subsection (a) shall be subject to the following terms and 
conditions: 
(1) Repayment shall be scheduled to begin on January 
1 of the year following the first year during which the boll 
weevil eradication zone, or any part thereof, responsible for 
the debt retired using the loan resumes participation in any 
federally funded boll weevil eradication program. 
(2) No interest shall be charged. 
(c) LIMITATION.—The cost of the loan made under this section 
shall not exceed the loan subsidy sufficient to make the loan. 
SEC. 252. ANIMAL DISEASE CONTROL. 
(a) PSEUDORABIES.—Of the amount made avedlable under sec-
tion 261(a)(2), the Secretary shall use $7,000,000 to cover 
pseudorabies vaccination costs incurred by pork producers. 
(b) BOVINE TUBERCULOSIS.—Of the amount made available 
under section 261(a)(2), the Secretary shall use $6,000,000 to 
respond to bovine tuberculosis in the State of Michigan. The funds 
shall be available for the following purposes: 
(1) The surveillance and testing of cattle and wildlife. 
(2) Research regarding bovine tuberculosis, to be conducted 
by the Agricultural Research Service Eind Michigan State 
University. 
(3) The provision of increased indemnity pa3anents to 
encourage the depopulation of infected herds. 
(4) The performance of diagnostic testing and treatment 
of humans affected by bovine tuberculosis. 
(5) Slaughter surveillance. 
(6) The control and prevention of the exposure of livestock 
to infected wildlife, including the installation of fencing to mini-
mize contact between livestock and wildlife. 
PUBLIC LAW 106-224—JUNE 20, 2000 
114 STAT. 423 
(7) The distribution of information regarding the risk and 
control of bovine tuberculosis, including technological improve-
ments to enhance communication. 
SEC. 253. EMERGENCY LOANS FOR SEED PRODUCERS. 
(a) IN GENERAL.—Of the amount made available under section 
261(a)(2), the Secretary shall use $35,000,000, plus $200,000 for 
pa3rment of administrative costs, to make no-interest loans to pro-
ducers of the 1999 crop of grass, forage, vegetable, and sorghum 
seed that have not received pajonents from AgriBiotech for the 
seed as a result of bankruptcy proceedings involving AgriBiotech 
(referred to in this section as the '^bankruptcy proceedings"). 
(b) LOANS.— 
(1) IN GENERAL.—The amount of the loan made to a seed 
producer imder this section shall be not more than 65 percent 
of the amoiuit owed by AgriBiotech to the seed producer for 
the 1999 seed crop, as determined by the Secretary. 
(2) ELIGIBILITY.—To be eligible for a loan under this section, 
the claim of a seed producer in the bankruptcy proceedings 
must have arisen from a contract to grow seeds in the United 
States. 
(3) 
CONTROL.—In determining the amount 
owed by 
AgriBiotech to a seed producer under paragraph (1), the Sec-
retary shall consider whether the seed producer has relin-
quished control of the seed to AgriBiotech or has the seed 
in inventory waiting to be sold. 
(4) SECURITY.—^A loan to a seed producer under this section 
shall be secured in part by the claim of the seed producer 
in the bankruptcy proceedings. 
(5) REPAYMENT.—Each seed producer shall repay to the 
Secreteuy, for deposit in the Treasury, the amount of the loan 
made to the seed producer on the earlier o
f
— 
(A) the date of settlement of, completion of, or final 
distribution of assets in the bankruptcy 
proceedings 
involving AgriBiotech; or 
(B) the date that is 18 months after the date on which 
the login was made to the seed producer. 
(c) ADDITIONAL TERMS.— 
(1) SHORTFALL IN AMOUNT RECEIVED FROM BANKRUPTCY 
PROCEEDINGS.—If the amoiuit that the seed producer receives 
as a result of the proceedings described in subsection (b)(5)(A) 
is less than the amount of the loan made to the seed producer 
under subsection (b)(1), the seed producer shall be eligible 
to have the baleince of the loan converted, but not refinanced, 
to a loan that has the same terms and conditions as an oper-
ating loan under subtitle B of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1941 et seq.). 
(2) LENGTHY BANKRUPTCY PROCEEDINGS.—If a seed pro-
ducer is required to repay a loan under subsection (b)(5)(B), 
the seed producer shall be eligible to have the balance of 
the loan converted, but not refinanced, to a loan that has 
the same terms and conditions as an operating loan under 
subtitle B of the Consolidated Feirm and Rural Development 
Act (7 U.S.C. 1941 et seq.). 
(d) LIMITATION.—The cost of all loans made tmder this section 
shall not exceed $15,000,000. 
114 STAT. 424 
PUBLIC LAW 106-224—JUNE 20, 2000 
Deadline. 
7 use 1941 note. 
Effective date. 
Termination 
date. 
SEC. 254. TEMPORARY SUSPENSION OF AUTHORITY TO COMBINE CER-
TAIN OFFICES. 
(a) SUSPENSION,—During the period beginning on the date of 
the enactment of this Act and ending on June 1, 2001, the Secretary 
may not combine or take any action to combine, at the State 
level, oflEices of the agencies specified in subsection (b) unless the 
offices are located in the same county as of the date of the enactment 
of this Act. 
(b) COVERED OFFICES.—Subsection (a) applies to an office of 
any of the following agencies: 
(1) The Farm Service Agency. 
(2) The Natural Resources Conservation Service. 
(3) The Rural Utilities Service. 
(4) The Rural Housing Service. 
(5) The Rural Business-Cooperative Service. 
(c) REPORT.—Not later than April 1, 2001, 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 descriJbing any proposed combination of 
offices specified in subsection (b) that includes a certification that 
the proposed combination would result in the lowest cost to the 
Federal Government over the long term. 
SEC. 255. FARM OPERATING LOAN ELIGIBILITY. 
During the period beginning on the date of the enactment 
of this Act and ending on December 31, 2002— 
(1) sections 311(c) and 319 of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1941(c), 1949) shall have 
no force or effect; emd 
(2) in making direct loans under subtitle B of that Act 
(7 U.S.C. 1941 et seq.), the Secretary shall give priority to 
a qualified beginning farmer or rancher who has not operated 
a farm or ranch, or who has operated a farm or ranch for 
not more than 5 years. 
SEC. 256. WATER SYSTEMS FOR RURAL AND NATIVE VILLAGES IN 
ALASKA. 
Section 306D of the Consolidated Farm eind Rurgd Development 
Act (7 U.S.C. 1926d) is amended by striking subsection (d) and 
inserting the following: 
"(d) AUTHORIZATION OF APPROPRIATIONS.— 
"(1) IN GENERAL.—There are authorized to be appropriated 
to carry out this section $30,000,000 for each of fiscal years 
2001 and 2002. 
"(2) TRAINING AND TECHNICAL ASSISTANCE.—Not more than 
2 percent of the amount made available under paragraph (1) 
for a fiscal year may be used by the State of Alaska for training 
and technical assistance programs relating to the operation 
and management of water and waste disposal services in rural 
and Native villages. 
"(3) AVAILABILITY.—Funds appropriated pursuguit to the 
authorization of appropriations in paragraph (1) shall be avail-
able until expended.". 
SEC. 
257. 
CROP 
AND 
PASTURE 
FLOOD 
COMPENSATION 
PROGRAM. 
7 use 1421 note. 
(a) DEFINITION OF COVERED LAND.—In this section: 
(1) IN GENERAL.—The term "covered land" means land 
that— 
PUBLIC LAW 106-224-JUNE 20, 2000 
114 STAT. 425 
(A) was unusable for agriculturgd production during 
the 2000 crop year as the result of flooding; 
(B) was used for agricultural production during at least 
one of the 1992 through 1999 crop years; 
(C) is a contiguous parcel of land of at least 1 acre; 
and 
(D) is located in a county in which producers were 
eligible for assistance under the 1998 Flood Compensation 
Program established under part 1439 of title 7, Code of 
Federal Regulations. 
(2) EXCLUSIONS.—The term "covered land" excludes any 
land for which a producer is insured, enrolled, or assisted 
during the 2000 crop year under— 
(A) a policy or plan of insuremce authorized under 
the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.); 
(B) the noninsured crop assistance program operated 
under section 196 of the Agricultural Market Tremsition 
Act (7 U.S.C. 7333); 
(C) any crop disaster program established for the 2000 
crop year; 
(D) the conservation reserve program established under 
subchapter B of chapter 1 of subtitle D of the Food Security 
Act of 1985 (16 U.S.C. 3831 et seq.); 
(E) the wetlands reserve program established under 
subchapter C of chapter 1 of subtitle D of the Food Security 
Act of 1985 (16 U.S.C. 3837 et seq.); 
(F) any emergency watershed protection program or 
Federal easement program that prohibits crop production 
or grazing; or 
(G) any other Federal or State water storage program, 
as determined by the Secretary. 
(b) COMPENSATION.—The Secretary shall use not more than 
7USCi42inote. 
$24,000,000 of funds of the Commodity Credit Corporation to com-
pensate producers with covered land described with respect to losses 
from long-term flooding. 
(c) PAYMENT RATE.—The pa3anent rate for compensation pro- 7 USC 1421 note, 
vided to a producer under this section shall equal the average 
county cash rental rate per acre established by the National Agricul-
tural Statistics Service for the 2000 crop year. 
(d) PAYMENT LIMITATION.—The total amount of payments made 
7 use 1421 note. 
to a person (as defined in section 1001(5) of the Food Security 
Act (7 U.S.C. 1308(5))) under this section may not exceed $40,000. 
(e) CONFORMING AMENDMENT.—H.R. 3425 of the 106th Con-
gress (as enacted into law by section 1000(a)(5) of Public Law 
106-113 (113 Stat. 1535) and included as Appendix E of that 
Pubhc Law (113 Stat. 1501A-289)) is amended in section 207 (113 
Stat. 1501A-294) by inserting "or Lake" after "Harney". 
SEC. 258. FLOOD MITIGATION NEAR PIERRE, SOUTH DAKOTA-
(a) REQUIREMENT.—Subject to subsection (b), as soon as prac-
ticable after the date of the enactment of this Act, with respect 
to land and property described in the Flood Mitigation Study and 
Project Implementation Plan for the Missouri River near Pierre, 
South Dakota, prepared by the Omaha District Corps of Engineers, 
dated August 12, 1999, the Secretary of the Army shall— 
(1) acquire the land and property from willing sellers; 
and 
114 STAT. 426 
PUBLIC LAW 106-224-^JUNE 20, 2000 
(2)(A) floodproof the land; 
(B) relocate individuals located on the land; 
(C) improve infrastructure on the land; or 
(D) take other measures determined by the Secretary. 
(b) RELEASES.— 
(1) IN GENERAL.—The Secretary shall not proceed with 
full wintertime Oahe Powerplant releases until the Secretary 
amends the economic Euisdysis in effect on the date of the 
enactment of this Act to include an assumption that the FedergJ 
Government is responsible for mitigating any existing ground 
water flooding to the land and property described in subsection 
(a). 
(2) REDUCTION.—To the extent the Secretary identifies 
benefits of mitigating any existing ground water flooding, full 
wintertime Oahe Powerplant releases shall be reduced con-
sistent with the economic analysis described in paragraph (1). 
(3) MINIMUM LEVEL.—^This subsection shall not permit 
Oahe Powerplant releases to be reduced below existing oper-
ational levels. 
7 use 1421 note. SEC. 259. RESTORATION OF ELIGmiUTY FOR CROP LOSS ASSISTANCE. 
(a) EFFECT OF CHANGE IN LEGAL STRUCTURE.—In the case 
of £ui individual or entity that was not eligible for a pa3rment 
pursuant to subsection (c) of section 1102 of the Agriculture, Rural 
Development, Food and Drug Administration, and Related Agencies 
Appropriations Act, 1999 (as contained in section 101(a) of division 
A of Public Law 105-277; 7 U.S.C. 1421 note), solely because 
the individual or entity changed the legal structure of the individ-
ual's or entity's farming operation, the individual or entity shaill 
be eligible for the pajnnent the individual or entity would have 
received pursuant to that subsection had the individual or entity 
not changed the legal structure, less the amount of any payment 
received by the individual or entity pursuant to subsection (b) 
of that section. 
(b) MULTIPLE FARMING OPERATIONS.— 
(1) ELIGIBLE INDIVIDUALS.—In the case of an individual 
not described in subsection (a) that farmed acreage as a pro-
ducer as a part of more theui one farming operation, none 
of which received a payment pursuant to subsection (c) of 
section 1102 of the Agricultiu-e, RurgJ Development, Food £ind 
Drug Administration, and Related Agencies Appropriations Act, 
1999, the individual shall be eligible for a payment pursuant 
to that subsection for losses that the Secretary determines 
would have been eligible for compensation with respect to that 
acreage based on the individual's interest in the production 
from that acreage. 
(2) REDUCTION.—^A pa3mient made pursuant to paragraph 
(1) to an individual shall be reduced by the amount of a pay-
ment made piu-suant to subsection (b) of that section 1102 
attributed directly or indirectly to the individuzd with respect 
to the acreage described in p£iragraph (1). 
PUBLIC LAW 106-224-^UNE 20, 2000 
114 STAT. 427 
Subtitle G—^Administration 
SEC. 261. FUNDING. 
(a) PAYMENT.—Out of any moneys in the Treasury not otherwise 
appropriated, the Secretary of the Treasury shall provide to the 
Secretary the following: 
(1) $34,000,000 for fiscal year 2000 to carry out section 
241(a). 
(2) $465,500,000 for fiscal year 2001 to carry out the 
following: 
(A) Section 203 (other than subsection (f)). 
(B) Subtitle C. 
(C) Section 231. 
(D) Section 241 (other than subsection (a)), 
(E) Sections 252 and 253. 
(b) ACCEPTANCE.—The Secretary shall be entitled to receive 
the funds and shall accept the funds, without further appropriation. 
SEC. 262. OBLIGATION PERIOD. 
Except as otherwise provided in this title, the Secretary and 
the Commodity Credit Corporation shall obligate and expend— 
(1) funds made available under section 261(a)(1) only 
during fiscal year 2000; and 
(2) funds made available under section 261(a)(2), and funds 
of the Commodity Credit Corporation made available under 
this title, only during fiscal year 2001. 
SEC. 263. REGULATIONS. 
7 USC 1421 note. 
(a) PROMULGATION.—^As soon as practicable after the date of 
the enactment of this Act, the Secretary and the Commodity Credit 
Corporation, as appropriate, shsJl promulgate such regulations as 
are necessary to implement this title and the amendments made 
by this title. The promulgation of the regulations and administration 
of this title shall be made without regard to— 
(1) the notice Eind comment provisions of section 553 of 
title 5, United States Code; 
(2) the Statement of Policy of the Secretary of Agriculture 
effective July 24, 1971 (36 Fed. Reg. 13804), relating to notices 
of proposed rulemaking and public participation in rulemaking; 
and 
(3) chapter 35 of title 44, United States Code (commonly 
known as the "Paperwork Reduction Act"). 
(b) CONGRESSIONAL REVIEW OF AGENCY RULEMAKING.—In car-
rjdng out this section, the Secretary shall use the authority provided 
under section 808 of title 5, United States Code, 
SEC. 264. PAYGO ADJUSTMENT. 
The Director of the Office of Management and Budget shall 
not make any estimates of changes in direct spending outlays 
and receipts under section 252(d) of the Bsdanced Budget and 
Emergency Deficit Control Act of 1985 (2 U.S.C. 902(d)) resulting 
from enactment of this title. 
SEC. 265. COMMODITY CREDIT CORPORATION REIMBURSEMENT. 
Out of any moneys in the Treasury not otherwise appropriated, 
the Secretary of the Treasury shall use such sums as may be 
necessary to reimburse the Commodity Credit Corporation for net 
114 STAT. 428 
PUBLIC LAW 106-224-^JUNE 20, 2000 
realized losses sustained, but not previously reimbursed, under 
this title. 
TITLE III—BIOMASS RESEARCH AND 
DEVELOPMENT ACT OF 2000 
Biomass 
Research and 
Development Act 
of 2000. 
7 u s e 7624 note. 
SEC. 301. SHORT TITLE. 
This title may be cited as the "Biomass Research and Develop-
ment Act of 2000". 
7 u s e 7624 note. 
SEC. 302. FINDINGS. 
Congress finds that— 
(1) conversion of biomass into biobased industrial products 
offers outstanding potential for benefit to the national interest 
through— 
(A) improved strategic security and balance of pay-
ments; 
(B) healthier rursd economies; 
(C) improved environmental quality; 
(D) ne£ir-zero net greenhouse gas emissions; 
(E) technology export; and 
(F) sustainable resource supply; 
(2) the key technical challenges to be overcome in order 
for biobased industrial products to be cost-competitive are 
finding new technology and reducing the cost of technology 
for converting biomass into desired biobased industrial prod-
ucts; 
(3) biobased fuels, such as ethanol, have the clear potential 
to be sustainable, low cost, and high performance fuels that 
are compatible with both current and future transportation 
systems £uid provide near-zero net greenhouse gas emissions; 
(4) biobased chemicals have the clear potential for environ-
mentally benign product life cycles; 
(5) biobased power can— 
(A) provide environmental benefits; 
(B) promote rural economic development; and 
(C) diversify energy resource options; 
(6) many biomass feedstocks suitable for industrial proc-
essing show the clear potential for sustainable production, in 
some cases resulting in improved soil fertility eind carbon 
sequestration; 
I (7)(A) grain processing mills are biorefineries that produce 
a diversity of useful food, chemical, feed, and fuel products; 
and 
(B) technologies that resiilt in further diversification of 
the range of value-added biobased industrial products can meet 
a key need for the grain processing industry; 
(8)(A) cellulosic feedstocks are attractive because of their 
low cost and widespread availability; and 
(B) reseeirch resulting in cost-effective technology to over-
come the recalcitr£ince of cellulosic biomass would allow bio-
refineries to produce fuels and bulk chemicals on a very large 
scale, with a commensurately large realization of the benefit 
described in paragraph (1); 
(9) research into the fundamentals to understand important 
mechanisms of biomass conversion can be expected to accelerate 
PUBLIC LAW 106-224—JUNE 20, 2000 
114 STAT. 429 
the application and advancement of biomass processing tech-
nology by— 
(A) increasing the confidence and speed with which 
new technologies can be scaled up; and 
(B) giving rise to processing innovations based on new 
knowledge; 
(10) the added utility of biobased industried products devel-
oped through improvements in processing technology would 
encourage the design of feedstocks that would meet future 
needs more effectively; 
(11) the creation of value-added biobased industrial prod-
ucts would create new jobs in construction, manufacturing, 
and distribution, as well as new higher-valued exports of prod-
ucts and technology; 
(12)(A) because of the relatively short-term time horizon 
characteristic of private sector investments, and because many 
benefits of biomass processing are in the national interest, 
it is appropriate for the Federal (Government to provide 
precommercial 
investment 
in 
fundamental 
research 
and 
research-driven innovation in the biomass processing area; and 
(B) such an investment would provide a valuable com-
plement to ongoing and past governmental support in the bio-
mass processing area; and 
(13) several prominent studies, including studies by the 
President's Committee of Advisors on Science and Technology 
and the Nationgd Research Council— 
(A) support the potential for large research-driven 
,. 
advances in technologies for production of biobased indus-
trial products as well as associated benefits; and 
(B) document the need for a focused, integrated, and 
innovation-driven research effort to provide the appropriate 
progress in a timely manner. 
SEC. 303. DEFINITIONS. 
7 USC 7624 note. 
In this title: 
(1) ADVISORY COMMITTEE.—The term "Advisory Committee" 
means the Biomass Research and Development Technical 
Advisory Committee established by section 306. 
(2) BIOBASED INDUSTRIAL PRODUCT.—The term "biobased 
industrial product" mesuis fuels, chemicEils, building materials, 
or electric power or heat produced from biomass. 
(3) BIOMASS.—The term "biomass" means £iny orgEinic 
matter that is available on a renewable or recurring basis, 
including agricultured crops £ind trees, wood and wood wastes 
and residues, plants (including aquatic plants), grasses, resi-
dues, fibers, and animal wastes, municipal wastes, and other 
waste materials. 
(4) 
BOARD.—The term 
"Board" means 
the 
Biomass 
Research and Development Board established by section 305. 
(5) INITIATIVE.—The term "Initiative" means the Biomass 
Research and Development Initiative established under section 
307. 
(6) INSTITUTION OF HIGHER EDUCATION.—The term "institu-
tion of higher education" has the meaning given the term 
in section 102(a) of the Higher Education Act of 1965 (20 
U.S.C. 1002(a)). 
114 STAT. 430 
PUBLIC LAW 106-224^-JUNE 20, 2000 
(7) NATIONAL LABORATORY.—The term "national laboratory" 
has the meaning given the term "laboratory" in section 12(d) 
of the Stevenson-Wydler Technology Innovation Act of 1980 
(15 U.S.C. 3710a(d)). 
(8) POINT OF CONTACT.—The term "point of contact" means 
a point of contact designated under section 304(d). 
(9) PROCESSING.—The term "processing" means the deriva-
tion of biobased industrial products from biomass, including— 
(A) feedstock production; 
(B) harvest and handling; 
(C) pretreatment or thermochemical processing; 
(D) fermentation; 
(E) catalytic processing; 
(F) product recovery; and 
(G) coproduct production. 
(10) RESEARCH AND DEVELOPMENT.—The term "research 
and development" means research, development, and dem-
onstration. 
7 use 7624 note. 
SEC. 304. COOPERATION AND COORDINATION IN BIOMASS RESEARCH 
AND DEVELOPMENT. 
(a) IN GENERAL.—The Secretary of Agriculture and the Sec-
retary of Energy shall cooperate with respect to, and coordinate, 
policies and procedures that promote research and development 
leading to the production of biobased industrial products. 
(b) PURPOSES.—The purposes of the cooperation and coordina-
tion shall be— 
(1) to understand the key mechanisms underlying the recal-
citrance of biomass for conversion into biobased industrial prod-
ucts; 
(2) to develop new and cost-effective technologies that 
would result in large-scale commercial production of low cost 
and sustainable biobased industrial products; 
(3) to ensure that biobased industrial products are devel-
oped in a manner that enhances their economic, energy security, 
£ind environmentsd benefits; £ind 
(4) to promote the development and use of agricultural 
and energy crops for conversion into biobased industrial prod-
ucts. 
(c) AREAS.—In carrying out this title, the Secretary of Agri-
culture and the Secretary of Energy, in consultation with heads 
of appropriate depeirtments and agencies, shall promote research 
and development— 
(1) to advance the availability and widespread use of energy 
efficient, economically competitive, and environmentally sound 
biobased industrial products in a manner that is consistent 
with the goals of the United States relating to sustainable 
and secure supplies of food, chemicals, and fuel; 
(2) to ensure full consideration of Federal land and land 
management programs as potential feedstock resources for 
biobased industrial products; and 
(3) to assess the environmental, economic, and social impact 
of production of biobased industrial products from biomass on 
a large scale. 
(d) POINTS OF CONTACT.— 
PUBLIC LAW 106-224-^UNE 20, 2000 
114 STAT. 431 
(1) IN GENERAL.—To coordinate research and development Government 
programs and activities relating to biobased industrial products organization. 
that are carried out by their respective Departments— 
President. 
(A) the Secretary of Agriculture shall designate, as 
the point of contact for the Department of Agriculture, 
an officer of the Department of Agriculture appointed by 
the President to a position in the Department before the 
date of the designation, by and with the advice and consent 
of the Senate; and 
(B) the Secretary of Energy shall designate, as the 
point of contact for the Department of Energy, an officer 
of the Department of Energy appointed by the President 
to a position in the Department before the date of the 
designation, by and with the advice and consent of the 
Senate. 
(2) DUTIES.—The points of contact shall jointly— 
(A) assist in arranging interlaboratory and site-specific 
supplemental agreements for research and development 
projects relating to biobased industrial products; 
(B) serve as cochairpersons of the Board; 
(C) administer the Initiative; and 
(D) respond in writing to each recommendation of the 
Advisory Committee made under section 306(c). 
SEC. 305. BIOMASS RESEARCH AND DEVELOPMENT BOARD. 
7 USC 7624 note. 
(a) 
ESTABLISHMENT.—There 
is 
established 
the 
Biomass 
Research and Development Board, which shall supersede the Inter-
agency Council on Biobased Products and Bioenergy established 
by Executive Order No. 13134, to coordinate programs within and 
among departments and agencies of the Federal Government for 
the purpose of promoting the use of biobased industrial products 
b y -
(1) maximizing the benefits deriving from Federal grants 
and assistance; and 
(2) bringing coherence to Federal strategic planning. 
(b) MEMBERSHIP.—The Board shall consist of— 
(1) the point of contact of the Department of Energy des-
ignated under section 304(d)(1)(B), who shall serve as cochsiir-
person of the Board; 
(2) the point of contact of the Department of Agriculture 
designated under section 304(d)(1)(A), who shall serve as 
cochairperson of the Board; 
(3) a senior officer of each of the Department of the Interior, 
the EnvironmentgJ Protection Agency, the National Science 
Foundation, and the Office of Science and Technology Policy, 
each of whom shall— 
(A) be appointed by the head of the respective agency; 
and 
(B) have a rgink that is equivalent to the rank of 
the points of contact; and 
(4) at the option of the Secretary of Agriculture and the 
Secretary of Energy, other members appointed by the Secre-
taries (after consultation with the members described in para-
graphs (1) through (3)). 
(c) DUTIES.—The Board shall— 
(1) coordinate research and development activities relating 
to biobased industrial products— 
114 STAT. 432 
PUBLIC LAW 106-224—JUNE 20, 2000 
(A) between the DepEirtment of Agriculture and the 
Department of Energy; and 
(B) with other departments and agencies of the Federal 
Government; and 
(2) provide recommendations to the points of contact con-
cerning administration of this title. 
(d) FUNDING.—Each agency represented on the Board is encour-
aged to provide funds for any purpose under this title. 
(e) MEETINGS.—The Board shall meet at least quarterly to 
enable the Board to carry out the duties of the Board under sub-
section (c). 
7 u s e 7624 note. 
SEC. 306. BIOMASS RESEARCH AND DEVELOPMENT TECHNICAL 
ADVISORY COMMITTEE. 
(a) 
ESTABLISHMENT.—There 
is 
established 
the 
Biomass 
Research and Development Technical Advisory Committee, which 
shall supersede the Advisory Committee on Biobased Products and 
Bioenergy established by Executive Order No. 13134— 
(1) to advise the Secretary of Energy, the Secretary of 
Agriculture, and the points of contact concerning— 
(A) the technical focus and direction of requests for 
proposals issued under the Initiative; and 
(B) procedures for reviewing and evgduating the pro-
posals; 
(2) to facilitate consultations and partnerships among 
Federal and State agencies, agricultural producers, industry, 
consumers, the research community, and other interested 
groups to carry out program activities relating to the Initiative; 
and 
(3) to evaluate and perform strategic planning on program 
activities relating to the Initiative. 
(b) MEMBERSHIP.— 
(1) IN GENERAL.—The Advisory Committee shall consist 
of— 
(A) an individual affiliated with the biobased industrial 
products industry; 
(B) an individual affiliated with an institution of higher 
education who has expertise in biobased industrial prod-
ucts; 
(C) two prominent engineers or scientists from govern-
ment or academia who have expertise in biobased industrial 
products; 
(D) an individual affiliated with a commodity trade 
association; 
(E) an individual affiliated with an environmental or 
conservation organization; 
(F) an individual associated with State government 
who has expertise in biobased industrial products; 
(G) an individual with expertise in energy analysis; 
(H) an individual with expertise in the economics of 
biobased industrial products; 
(I) an individual 
with 
expertise in 
agricultural 
economics; and 
(J) at the option of the points of contact, other mem-
bers. 
(2) APPOINTMENT.—The members of the Advisory Com-
mittee shall be appointed by the points of contact. 
PUBLIC LAW 106-224—JUNE 20, 2000 
114 STAT. 433 
(c) DUTIES.—The Advisory Committee shall— 
(1) advise the points of contact with respect to the Initia-
tive; and 
(2) evaluate whether, and make recommendations in 
writing to the Board to ensure that— 
(A) funds authorized for the Initiative are distributed 
and used in a manner that is consistent with the goals 
of the Initiative; 
(B) the points of contact are funding proposals under 
this title that are selected on the basis of merit, as deter-
mined by an independent panel of scientific and technical 
peers; and 
(C) activities under this title are carried out in accord-
ance with this title. 
(d) COORDINATION.—To avoid duplication of effort, the Advisory 
Committee shall coordinate its activities with those of other Federal 
advisory committees working in related areas. 
(e) MEETINGS.—The Advisory Committee shall meet at least 
quarterly to enable the Advisory Committee to CEury out the duties 
of the Advisory Committee under subsection (c). 
(f) TERMS.—Members of the Advisory Committee shall be 
appointed for a term of 3 years, except that— 
(1) one-third of the members initially appointed shall be 
appointed for a term of 1 year; and 
(2) one-third of the members initially appointed shall be 
appointed for a term of 2 years. 
SEC. 307. BIOMASS RESEARCH AND DEVELOPMENT INITIATIVE. 
Grants. 
(a) IN GENERAL.—The Secretary of Agriculture £uid the Sec- 7 usc 7624 note. 
retary of Energy, acting through their respective points of contact 
and in consultation with the Board, shall establish and carry out 
a Biomass Research and Development Initiative under which 
competitively awarded grants, contracts, and jfinancial assistance 
are provided to, or entered into with, eligible entities to carry 
out rescEirch on biobased industrial products. 
(b) PURPOSES.—The purposes of grants, contracts, and assist-
ance luider this section shall be— 
(1) to stimulate collaborative activities by a diverse range 
of experts in all aspects of biomass processing for the purpose 
of conducting fundamental and innovation-targeted research 
and technology development; 
(2) to enhance creative and imaginative approaches toward 
biomass processing that will serve to develop the next genera-
tion of advanced technologies making possible low cost and 
sustainable biobased industried products; 
(3) to strengthen the intellectual resources of the United 
States through the training and education of future scientists, 
engineers, managers, and business leaders in the field of bio-
mass processing; and 
(4) to promote integrated research partnerships among col-
leges, universities, national laboratories. Federal and State 
research agencies, and the private sector as the best means 
of overcoming technical challenges that spam multiple reseairch 
and engineering disciplines and of gaining better leverage fi*om 
limited Federal research funds. 
(c) ELIGIBLE ENTITIES.— 
114 STAT. 434 
PUBLIC LAW 1 0 6 - 2 2 4 - J U N E 20, 2000 
(1) IN GENERAL.—To be eligible for a grant, contract, or 
assistance under this section, an applicant shall be— 
(A) an institution of higher education; 
(B) a national laboratory; 
(C) a Federal research agency; 
(D) a State research agency; 
(E) a private sector entity; 
(F) a nonprofit organization; or 
(G) a consortium of two or more entities described 
in subparagraphs (A) through (F). 
(2) ADMINISTRATION.—After consultation with the Board, 
the points of contact shall— 
Publication. 
(A) publish annually one or more joint requests for 
proposals for grants, contracts, and assistance under this 
section; 
(B) establish a priority in grants, contracts, and assist-
ance under this section for research that— 
(i) demonstrates potential for significant advances 
in biomass processing; 
(ii) demonstrates potential to substantially further 
scale-sensitive nationgd objectives such as— 
(I) sustainable resource supply; 
(II) reduced greenhouse gas emissions; 
(III) healthier rural economies; and 
(IV) improved strategic security and trade bal-
ances; and 
(iii) would improve knowledge of important bio-
mass processing systems that demonstrate potential 
for commercial applications; 
(C) require that grants, contracts, and assistance imder 
this section be awarded competitively, on the basis of merit, 
after the establishment of procedures that provide for sci-
entific peer review by an independent panel of scientific 
and technical peers; and 
(D) give preference to applications that— 
(i) involve a consortia of experts from multiple 
institutions; and 
(ii) encourage the integration of disciplines and 
application of the best techniced resources, 
(d) USES OF GRANTS, CONTRACTS, AND ASSISTANCE.—^A grant, 
contract, or assistance under this section may be used to conduct— 
(1) research on process technology for overcoming the recal-
citrance of biomass, including research on key mechanisms, 
advanced technologies, and demonstration test beds for— 
(A) feedstock pretreatment and hydrolysis of cellulose 
and hemicellulose, including new technologies for— 
(i) enhanced sugar yields; 
(ii) lower overall chemical use; 
(iii) less costly materials; and 
(iv) cost reduction; 
(B) development 
of novel 
organisms 
and 
other 
approaches to substantially lower the cost of cellulase 
enzymes and enzymatic hydrolysis, including dedicated cel-
lulase production and consolidated Coprocessing strategies; 
and 
(C) approaches other than enzymatic hydrolysis for 
overcoming the recalcitrance of cellulosic biomass; 
PUBLIC LAW 106-224-^JUNE 20, 2000 
114 STAT. 435 
(2) reseairch on technologies for diversifying the range of 
products that can be efficiently and cost-competitively produced 
from biomass, including research on— 
(A) metabolic 
engineering 
of biological 
systems 
(including the safe use of genetically modified crops) to 
produce novel products, especiedly commodity products, or 
to increase product selectivity and tolerance, with a 
research priority for the development of biobased industrial 
products that can compete in performance and cost with 
fossil-based products; 
(B) catedj^ic processing to convert intermediates of bio-
mass processing into products of interest; 
(C) separation technologies for cost-effective product 
recovery and purification; 
(D) approaches other than metabolic engineering and 
catalytic conversion of intermediates of biomass processing; 
(E) 
advanced 
biomass 
gasification 
technologies, 
including coproduction of power and heat as an integrated 
component of biomass processing, with the possibility of 
generating excess electricity for sale; and 
(F) related research in advanced turbine and stationary 
fuel cell technology for production of electricity from bio-
mass; and 
(3) research aimed at ensuring the environmental perform-
ance and economic viability of biobased industrial products 
and their raw material input of biomass when considered as 
an integrated system, including research on— 
(A) the analysis of, and strategies to enhance, the 
environmental performance and sustainability of biobased 
industrial products, including research on— 
(i) accurate measurement and analysis of green-
house gas emissions, carbon sequestration, and carbon 
cycling in relation to the life cycle of biobased industrial 
products and feedstocks with respect to other alter-
natives; 
(ii) evaluation of current and future biomass 
resource availability; 
(iii) development and analysis of land management 
practices and alternative biomass cropping systems 
that 
ensure the environmental performance 
and 
sustainability of biomass production and harvesting; 
(iv) the land, air, water, and biodiversity impacts 
of large-scale biomass production, processing, and use 
of biobased industrial products relative to other alter-
natives; and 
(v) biomass gasification and combustion to produce 
electricity; 
(B) the analysis of, and strategies to enhance, the 
economic viability of biobased industrial products, including 
research on— 
(i) the cost of the required process technology; 
(ii) the impact of coproducts, including food, animal 
feed, and fiber, on biobased industrigJ product price 
and large-scale economic viability; and 
(iii) interactions between an emergent biomass 
refining industry and the petrochemical refining infra-
structure; and 
114 STAT. 436 
PUBLIC LAW 106-224—JUNE 20, 2000 
(C) the field and laboratory research related to feed-
stock production with the interrelated goals of enhancing 
the sustainability, increasing productivity, and decreasing 
the cost of biomass processing, including research on— 
(i) altering biomass to make biomass easier and 
less expensive to process; 
(ii) existing and new agricultural and energy crops 
that provide a sustainable resource for conversion to 
biobased industrial products while 
simultaneously 
serving as a source for coproducts such as food, animal 
feed, and fiber; 
(iii) improved technologies for harvest, collection, 
transport, storage, and handling of crop and residue 
feedstocks; and 
(iv) development of economically viable cropping 
systems that improve the conservation and restoration 
of marginal land; or 
(4) any research and development in technologies or proc-
esses determined by the Secretary of Agriculture and the Sec-
retary of Energy, acting through their respective points of con-
tact and in consultation with the Boeu-d, to be consistent with 
the purposes described in subsection (b) and the priority 
described in subsection (c)(2)(B). 
(e) TECHNOLOGY AND INFORMATION TRANSFER TO AGRICULTURAL 
USERS.— 
(1) IN GENERAL.—The Administrator of the Cooperative 
State Research, Education, and Extension Service and the Chief 
of the Natural Resources Conservation Service shall ensure 
that applicable research results and technologies from the Ini-
tiative are adapted, made available, and disseminated through 
their respective services, as appropriate. 
Deadline. 
(2) REPORT.—Not later thzui 5 years £ifter the date of the 
enactment of this Act, the Administrator of the Cooperative 
State Research, Education, and Extension Service and the Chief 
of the Natural Resources Conservation Service shall submit 
to the committees of Congress with jurisdiction over the Initia-
tive a report on the activities conducted by the services under 
this subsection. 
(f) AUTHORIZATION OF APPROPRIATIONS.—In addition to funds 
appropriated for biomass research and development under the gen-
eral authority of the Secretary of Energy to conduct research and 
development programs (which may also be used to carry out this 
title), there are authorized to be appropriated to the Department 
of Agriculture to carry out this title $49,000,000 for each of fiscal 
years 2000 through 2005. 
7 u s e 7624 note. 
SEC. 308. ADMINISTRATIVE SUPPORT AND FUNDS. 
(a) IN GENERAL.—To the extent administrative support and 
funds are not provided by other agencies under subsection (b), 
the Secretary of Energy and the Secretary of Agriculture may 
provide such administrative support and funds of the Department 
of Energy and the Department of Agriculture to the Board and 
the Advisory Committee as are necessary to enable the Board 
and the Advisory Committee to carry out their duties under this 
title. 
(b) OTHER AGENCIES.—The heads of the agencies referred to 
in section 305(b)(3), and the other members appointed under section 
PUBLIC LAW 106-224-^JUNE 20, 2000 
114 STAT. 437 
305(b)(4), may, and are encouraged to, provide administrative sup-
port and funds of their respective agencies to the Bosird and the 
Advisory Committee. 
(c) LIMITATION.—Not more than 4 percent of the amount appro-
priated for each fiscal year under section 307(f) may be used to 
pay the administrative costs of canying out this title. 
SEC. 309. REPORTS. 
7 USC 7624 note. 
(a) INITIAL REPORT.—Not later than 180 days after the date Deadline, 
of the enactment of this Act, the Secretary of Energy and the 
Secretary of Agriculture shall jointly submit to Congress a report 
that— 
(1) identifies the points of contact, the members of the 
Board, and the members of the Advisory Committee; 
(2) describes the status of current biobased industrial 
product research and development efforts in both the Federal 
Government and private sector; 
(3) includes a section prepared by the Board that estab-
lishes a set of criteria to assess the potential of biobased indus-
trial products, which shall include for both biomass production 
and trguisformation into biobased industrial products— 
(A) an energy accounting; 
(B) an environmental impact assessment; and 
(C) an economic assessment; and 
(4) describes the research and development goals of the 
Initiative, including how funds will be allocated in order to 
accomplish those goals. 
(b) ANNUAL REPORTS.—For each fiscal year for which funds 
are made available to carry out this title, the Secretary of Energy 
and the Secretary of Agriculture shall jointly submit to Congress 
a detailed report on— 
(1) the status and progress of the Initiative, including 
a report fi-om the Advisory Committee on whether funds appro-
priated for the Initiative have been distributed and used in 
a manner that— 
(A) is consistent with the purposes described in section 
307(b); 
(B) uses the set of criteria established under subsection 
(a)(3); and 
(C) takes into account any recommendations that have 
been made by the Advisory Committee; 
(2) the general status of cooperation and research and 
development efforts carried out at each agency with respect 
to biobased industrisd products, including a report from the 
Advisory Committee on whether the points of contact are 
funding proposals that £ire selected under section 307(c)(2)(C); 
and 
(3) the plans of the Secretary of Energy and the Secretary 
of Agriculture for addressing concerns raised in the report, 
including concerns rsdsed by the Advisory Committee. 
SEC. 310. TERMINATION OF AUTHORITY. 
7 USC 7624 note. 
The authority provided under this title shall terminate on 
December 31, 2005. 
114 STAT. 438 
PUBLIC LAW 106-224—JUNE 20, 2000 
Plant Protection 
Act. 
Commerce and 
trade. 
Exports and 
imports. 
7 u s e 7701 note. 
7 u s e 7701. 
7 u s e 7702. 
TITLE IV—PLANT PROTECTION ACT 
SEC. 401. SHORT TITLE. 
This title may be cited as the "Plant Protection Act". 
SEC. 402. FINDINGS. 
Congress finds that— 
(1) the detection, control, eradication, suppression, preven-
tion, or retardation of the spread of plant pests or noxious 
weeds is necessary for the protection of the agriculture, environ-
ment, and economy of the United States; 
(2) biological control is often a desirable, low-risk means 
of ridding crops and other plants of plant pests and noxious 
weeds, and its use should be facilitated by the Department 
of Agriculture, other Federal agencies, and States whenever 
feasible; 
(3) it is the responsibility of the Secretary to facilitate 
exports, imports, and interstate commerce in agricultural prod-
ucts and other commodities that pose a risk of harboring plant 
pests or noxious weeds in ways that will reduce, to the extent 
practicable, as determined by the Secretary, the risk of dissemi-
nation of plant pests or noxious weeds; 
(4) decisions affecting imports, exports, and interstate 
movement of products regulated under this title shall be based 
on sound science; 
(5) the smooth movement of enterable plants, plant prod-
ucts, biological control organisms, or other articles into, out 
of, or within the United States is vital to the United State's 
economy and should be facilitated to the extent possible; 
(6) export markets could be severely impacted by the 
introduction or spread of plant pests or noxious weeds into 
or within the United States; 
(7) the unregulated movement of plant pests, noxious 
weeds, plants, certain biological control organisms, plant prod-
ucts, and articles capable of harboring plant pests or noxious 
weeds could present an unacceptable risk of introducing or 
spreading plant pests or noxious weeds; 
(8) the existence on any premises in the United States 
of a plant pest or noxious weed new to or not known to be 
widely prevalent in or distributed within and throughout the 
United States could constitute a threat to crops and other 
plants or plant products of the United States and burden inter-
state commerce or foreign commerce; and 
(9) all plant pests, noxious weeds, plants, plant products, 
articles capable of harboring plant pests or noxious weeds regu-
lated under this title are in or affect interstate commerce or 
foreign commerce. 
SEC. 403. DEFINITIONS. 
In this title: 
(1) ARTICLE.—The term "article" means any material or 
tangible object that could harbor plant pests or noxious weeds. 
(2) BIOLOGICAL CONTROL ORGANISM.—The term "biological 
control organism" means any enemy, antagonist, or competitor 
used to control a plant pest or noxious weed. 
PUBLIC LAW 106-224-^JUNE 20, 2000 
114 STAT. 439 
(3) ENTER AND ENTRY.—The terms "enter" and "entry" 
mean to move into, or the act of movement into, the commerce 
of the United States. 
(4) EXPORT AND EXPORTATION.—The terms "export" and 
"exportation" mean to move from, or the act of movement 
from, the United States to any place outside the United States. 
(5) IMPORT AND IMPORTATION.—The terms "import" and 
"importation" mean to move into, or the act of movement into, 
the territorial limits of the United States. 
(6) INTERSTATE.—The term "interstate" means— 
(A) from one State into or through £iny other State; 
or 
(B) within the District of Columbia, Guam, the Virgin 
Islands of the United States, or any other territory or 
possession of the United States. 
(7) INTERSTATE COMMERCE.—The term "interstate com-
merce" means trade, traffic, or other commerce— 
(A) between a place in a State and a point in another 
State, or between points within the saime State but through 
any place outside that State; or 
(B) within the District of Columbia, Guam, the Virgin 
Islands of the United States, or any other territory or 
possession of the United States. 
(8) MEANS OF CONVEYANCE.—The term "means of convey-
suice" means any personal property used for or intended for 
use for the movement of any other personal property. 
(9) 
MOVE 
AND RELATED 
TERMS.—The terms "move", 
"moving", and "movement" mean— 
(A) to carry, enter, import, mail, ship, or trsuisport; 
(B) to aid, abet, cause, or induce the carrying, entering, 
importing, mailing, shipping, or transporting; 
(C) to offer to carry, enter, import, mail, ship, or trans-
port; 
(D) to receive to carry, enter, import, mail, ship, or 
tr£uisport; 
(E) to release into the environment; or 
(F) to allow any of the activities described in a pre-
ceding subparagraph. 
(10) NOXIOUS WEED.—The term "noxious weed" means any 
plant or plant product that c£ui directly or indirectly injure 
or cause damage to crops (including nursery stock or plsuit 
products), livestock, poultry, or other interests of agriculture, 
irrigation, navigation, the natural resources of the United 
States, the public health, or the environment. 
(11) PERMIT.—The term "permit" means a written or oral 
authorization, including by electronic methods, by the Secretary 
to move plants, plant products, biological control organisms, 
plant pests, noxious weeds, or articles under conditions pre-
scribed by the Secretary. 
(12) PERSON.—The term "person" means any individual, 
pEulnership, corporation, association, joint venture, or other 
legal entity. 
(13) F^ANT.—The term "plant" means any plant (including 
any plant part) for or capable of propagation, including a tree, 
a tissue culture, a plantlet culture, pollen, a shrub, a vine, 
a cutting, a greift, a scion, a bud, a bulb, a root, and a seed. 
114 STAT. 440 
PUBLIC LAW 106-224—JUNE 20, 2000 
(14) PLANT PEST.—The term "plant pest" means any living 
stage of any of the following that can directly or indirectly 
injure, cause damage to, or cause disease in any plant or 
plant product: 
(A) A protozoan. 
(B) A nonhuman animal. 
(C) A parasitic plant. 
(D) A bacterium. 
(E) A fungus. 
(F) A virus or viroid. 
(G) An infectious agent or other pathogen. 
(H) Any article similar to or allied with any of the 
articles specified in the preceding subparagraphs. 
(15) PLANT PRODUCT.—The term "plant product" means— 
(A) £uiy flower, fruit, vegetable, root, bulb, seed, or 
other plant part that is not included in the definition 
of plant; or 
(B) any manufactured or processed plant or plant part. 
(16) SECRETARY.—The term "Secretar/' means the Sec-
retary of Agriculture. 
(17) STATE.—The term "State" means any of the several 
States of the United States, the Commonwealth of the Northern 
Mariana Islands, the Commonwealth of Puerto Rico, the Dis-
trict of Columbia, Guam, the Virgin Islands of the United 
States, or any other territory or possession of the United States. 
(18) SYSTEMS APPROACH.—For the purposes of section 
412(e), the term "systems approach" means a defined set of 
ph)^osanitary procedures, at least two of which have an inde-
pendent effect in mitigating pest risk associated with the move-
ment of commodities. 
(19) THIS TITLE.—Except when used in this section, the 
term "this title" includes £iny regulation or order issued by 
the Secretary under the authority of this title. 
(20) UNITED STATES.—The term "United States" means all 
of the States. 
Subtitle A—Plant Protection 
7 use 7711. 
SEC. 411. REGULATION OF MOVEMENT OF PLANT PESTS. 
(a) PROHIBITION OF UNAUTHORIZED MOVEMENT OF PLANT 
PESTS.—Except as provided in subsection (c), no person shall import, 
enter, export, or move in interstate commerce any plant pest, unless 
the importation, entry, exportation, or movement is authorized 
under general or specific permit and is in accordance with such 
regulations as the Secretary may issue to prevent the introduction 
of plant pests into the United States or the dissemination of plant 
pests within the United States. 
(b) REQUIREMENTS FOR PROCESSES.—The Secretary shall ensure 
that the processes used in developing regulations under subsection 
(a) governing consideration of import requests are based on sound 
science and are transparent and accessible. 
(c) AUTHORIZATION OF MOVEMENT OF PLANT PESTS BY REGULA-
TION.— 
(1) EXCEPTION TO PERMIT REQUIREMENT.—The Secretary 
may issue regulations to allow the importation, entry, expor-
tation, or movement in interstate commerce of specified plant 
PUBLIC LAW 106-224—JUNE 20, 2000 
114 STAT. 441 
pests without further restriction if the Secretary finds that 
a permit under subsection (a) is not necessary. 
(2) PETITION TO ADD OR REMOVE PLANT PESTS FROM REGULA-
TION.—^Any person may petition the Secretary to add a plant 
pest to, or remove a plant pest from, the regulations issued 
by the Secretary under paragraph (1). 
(3) RESPONSE TO PETITION BY THE SECRETARY.—In the case 
of a petition submitted under paragraph (2), the Secretary 
shall act on the petition within a reasonable time and notify 
the petitioner of the fingQ action the Secretary takes on the 
petition. The Secretary's determination on the petition sheJl 
be based on sound science. 
(d) PROHIBITION OF UNAUTHORIZED MAILING OF PLANT PESTS.— 
(1) IN GENERAL.—^Any letter, peircel, box, or other package 
containing any plant pest, whether sealed as letter-rate postal 
matter or not, is nonmailable and shall not knowingly be con-
veyed in the mail or delivered from any post office or by 
any mail carrier, unless the letter, parcel, box, or other package 
is mailed in compliance with such regulations as the Secretary 
may issue to prevent the dissemination of plant pests into 
the United States or interstate. 
(2) APPLICATION OF POSTAL LAWS AND REGULATIONS.— 
Nothing in this subsection authorizes any person to open any 
mailed letter or other mailed sealed matter except in accordance 
with the postal laws and regulations. 
, 
(e) REGULATIONS.—Regulations issued by the Secretary to 
implement subsections (a), (c), and (d) may include provisions 
requiring that any plant pest imported, entered, to be exported, 
moved in interstate commerce, mailed, or delivered fi-om any post 
office— 
(1) be accompanied by a permit issued by the Secretary 
prior to the importation, entry, exportation, movement in inter-
state commerce, msdling, or delivery of the plsint pest; 
(2) be accompanied by a certificate of inspection issued 
(in a manner and form required by the Secretary) by appro-
priate officials of the country or State from which the plant 
pest is to be moved; 
(3) be raised under post-entry quarantine conditions by 
or under the supervision of the SecretEiry for the purposes 
of determining whether the plsint pest— 
(A) may be infested with other plant pests; 
(B) may pose a significant risk of causing injury to, 
damage to, or disease in any plant or plant product; or 
(C) may be a noxious weed; and 
(4) be subject to remedial measures the Secretary deter-
mines to be necessary to prevent the spread of plant pests. 
SEC. 412. REGULATION OF MOVEMENT OF PLANTS, PLANT PRODUCTS, 
7 USC 7712. 
BIOLOGICAL CONTROL ORGANISMS, NOXIOUS WEEDS, 
ARTICLES, AND MEANS OF CONVEYANCE. 
(a) IN GENERAL.—The Secretary may prohibit or restrict the 
importation, entry, exportation, or movement in interstate com-
merce of any plant, plant product, biologicEil control organism, nox-
ious weed, article, or means of conveyance, if the Secretary deter-
mines that the prohibition or restriction is necessary to prevent 
the introduction into the United States or the dissemination of 
a plant pest or noxious weed within the United States. 
114 STAT. 442 
PUBLIC LAW 106-224—JUNE 20, 2000 
Deadline. 
Publication. 
Public 
information. 
(b) POLICY.—The Secretary shall ensure that processes used 
in developing regulations under this section governing consideration 
of import requests are based on sound science and are transparent 
and accessible. 
(c) REGULATIONS.—The Secretary may issue regulations to 
implement subsection (a), including regulations requiring that any 
plant, plant product, biological control organism, noxious weed, 
article, or means of conveyance imported, entered, to be exported, 
or moved in interstate commerce— 
(1) be accompanied by a permit issued by the Secretary 
prior to the importation, entry, exportation, or movement in 
interstate commerce; 
(2) be accompanied by a certificate of inspection issued 
(in a manner and form required by the Secretary) by appro-
priate officials of the country or State from which the plant, 
plant product, biological control organism, noxious weed, article, 
or means of conveyance is to be moved; 
(3) be subject to remedial measures the Secretary deter-
mines to be necessary to prevent the spread of plant pests 
or noxious weeds; and 
(4) with respect to plants or biological control organisms, 
be grown or handled under post-entry quarantine conditions 
by or under the supervision of the Secretary for the purposes 
of determining whether the plant or biological control organism 
may be infested with plant pests or may be a plant pest 
or noxious weed. 
(d) NOTICE.—Not later than 1 year after the date of the enact-
ment of this Act, the Secretary shall publish for public comment 
a notice describing the procedures and standards that govern the 
consideration of import requests. The notice shall— 
(1) specify how public input will be sought in advance 
of and during the process of promulgating regulations necessi-
tating a risk assessment in order to ensure a fully treinspEirent 
and publicly accessible process; and 
(2) include consideration of the following: 
(A) Public announcement of import requests that will 
necessitate a risk assessment. 
(B) A process for assigning major/nonroutine or minor/ 
routine status to such requests based on current state 
of supporting scientific information. 
(C) A process for assigning priority to requests. 
(D) Guidelines for seeking relevant scientific and eco-
nomic information in advance of initiating informal rule-
making. 
(E) Guidelines for ensuring availability and trans-
parency of assumptions and uncertainties in the risk 
assessment process including applicable risk mitigation 
measures relied upon individually or as components of 
a system of mitigative measures proposed consistent with 
the pvuTposes of this title. 
(e) STUDY AND REPORT ON SYSTEMS APPROACH.— 
(1) STUDY.—The Secretary shall conduct a study of the 
role for and application of systems approaches designed to 
guard against the introduction of plant pathogens into the 
United States associated with proposals to import plants or 
plant products into the United States. 
PUBLIC LAW 106-224—JUNE 20, 2000 
114 STAT. 443 
(2) PARTICIPATION BY SCIENTISTS.—In conducting the study 
the Secretary shall ensure participation by scientists from State 
departments of agriculture, colleges and imiversities, the pri-
vate sector, £ind the Agricultural Research Service. 
(3) REPORT.—Not later than 2 years after the date of the Deadline, 
enactment of this Act, the Secretary shall submit a report 
on the results of the study conducted under this section to 
the Committee on Agriculture, Nutrition, and Forestry of the 
Senate and the Committee on Agriculture of the House of 
Representatives. 
(f) Noxious WEEDS.— 
(1) REGULATIONS.—In the case of noxious weeds, the Sec-
retary may publish, by regulation, a list of noxious weeds 
that are prohibited or restricted from entering the United States 
or that are subject to restrictions on interstate movement within 
the United States. 
(2) PETITION TO ADD OR REMOVE PLANTS FROM REGULA-
TION.—^Any person may petition the Secretary to add a plsint 
species to, or remove a plant species from, the regulations 
issued by the Secretary under this subsection. 
(3) DUTIES OF THE SECRETARY.—In the case of a petition 
submitted under paragraph (2), the Secretary shsJl act on the 
petition within a reasonable time and notify the petitioner 
of the final action the Secretary takes on the petition. The 
Secretary's determination on the petition shall be based on 
sound science. 
(g) BIOLOGICAL CONTROL ORGANISMS.— 
(1) REGULATIONS.—In the case of biologicEd control orga-
nisms, the Secretary may publish, by regulation, a list of orga-
nisms whose movement in interstate commerce is not prohibited 
or restricted. Any listing may take into account distinctions 
between organisms such as indigenous, nonindigenous, newly 
introduced, or commercially raised. 
(2) PETITION TO ADD OR REMOVE BIOLOGICAL CONTROL ORGA-
NISMS FROM THE REGULATIONS.—^Any person may petition the 
Secretary to add a biological control organism to, or remove 
a biological control organism from, the regulations issued by 
the Secretary under this subsection. 
(3) DUTIES OF THE SECRETARY.—In the case of a petition 
submitted under paragraph (2), the Secretary shall act on the 
petition within a reasonable time and notify the petitioner 
of the final action the Secretary takes on the petition. The 
Secretary's determination on the petition shall be based on 
sound science. 
SEC. 
413. NOTIFICATION AND HOLDING REQUIREMENTS UPON 
7 USC 7713. 
ARRIVAL. 
(a) DUTY OF SECRETARY OF THE TREASLTRY.— 
(1) NOTIFICATION.—The Secretary of the Treasury shall 
promptly notify the Secretary of Agriculture of the arrival of 
any plant, plant product, biological control organism, plant 
pest, or noxious weed at a port of entry. 
(2) HOLDING.—The Secretary of the Treasury shall hold 
a plant, plant product, biological control organism, plant pest, 
or noxious weed for which notification is made under paragraph 
(1) at the port of entry until the plant, plant product, biological 
control organism, plant pest, or noxious weed— 
114 STAT. 444 
PUBLIC LAW 106-224-^JUNE 20, 2000 
(A) is inspected and authorized for entry into or transit 
movement through the United States; or 
(B) is otherwise released by the Secretary of Agri-
culture. 
(3) EXCEPTIONS.—Paragraphs (1) and (2) shall not apply 
to any plant, plant product, biological control organism, plant 
pest, or noxious weed that is imported from a country or region 
of a country designated by the Secretary of Agriculture, pursu-
£uit to regulations, as exempt from the requirements of such 
paragraphs. 
(b) DUTY OF RESPONSIBLE PARTIES.— 
(1) NOTIFICATION.—The person responsible for any plant, 
plemt product, biological control org£inism, plant pest, noxious 
weed, article, or means of conveyance required to have a permit 
imder section 411 or 412 shall provide the notification described 
in paragraph (3) as soon as possible after the arrival of the 
plant, plant product, biological control orgeuiism, plant pest, 
noxious weed, girticle, or means of conveyeince at a port of 
entry and before the plsint, plant product, biological control 
organism, plant pest, noxious weed, article, or means of convey-
ance is moved from the port of entry. 
(2) SUBMISSION.—'nie notification shall be provided to the 
Secretary, or, at the Secretary's direction, to the proper official 
of the State to which the pleint, plant product, biological control 
organism, plant pest, noxious weed, article, or means of convey-
ance is destined, or both, as the Secretary may prescribe. 
(3) ELEMENTS OF NOTIFICATION.—The notification shall con-
sist of the following: 
(A) The name and address of the consignee. 
(B) The nature and quantity of the plant, plant product, 
biological control org£uiism, plant pest, noxious weed, 
article, or means of conveyance proposed to be moved. 
(C) The country and locality where the plant, plant 
product, biological control organism, plant pest, noxious 
weed, article, or means of conveyance was grown, produced, 
or located. 
(c) PROfflBITION ON MOVEMENT OF ITEMS WITHOUT AUTHORIZA-
TION.—No person shall move from a port of entry or interstate 
any imported plant, plant product, biological control organism, plant 
pest, noxious weed, article, or means of conveyance unless the 
imported plant, plant product, biological control organism, plant 
pest, noxious weed, article, or means of conveyance— 
(1) is inspected and authorized for entry into or transit 
movement through the United States; or 
(2) is otherwise released by the Secretary. 
7 use 7714. 
SEC. 414. GENERAL REMEDIAL MEASURES FOR NEW PLANT PESTS 
AND NOXIOUS WEEDS. 
(a) AUTHORITY TO HOLD, TREAT, OR DESTROY ITEMS.—If the 
Secretary considers it necessary in order to prevent the dissemina-
tion of a plant pest or noxious weed that is new to or not known 
to be widely prevalent or distributed within and throughout the 
United States, the Secretary may hold, seize, quaremtine, treat, 
apply other remedial measures to, destroy, or otherwise dispose 
of any plant, plant pest, noxious weed, biological control organism, 
plant product, article, or means of conveyance that— 
PUBLIC LAW 1 0 6 - 2 2 4 - J U N E 20, 2000 
114 STAT. 445 
(1) is moving into or through the United States or inter-
state, or has moved into or through the United States or inter-
state, and— 
(A) the Secretary has reason to beheve is a plant 
pest or noxious weed or is infested with a plant pest or 
noxious weed at the time of the movement; or 
(B) is or has been otherwise in violation of this title; 
(2) has not been maintained in complisince with a post-
entry quarantine requirement; or 
(3) is the progeny of any plant, biological control organism, 
plant product, plant pest, or noxious weed that is moving into 
or through the United States or interstate, or has moved into 
the United States or interstate, in violation of this title. 
(b) AUTHORITY TO ORDER AN OWNER TO TREAT OR DESTROY.— 
(1) IN GENERAL.—The Secretary may order the owner of 
any plant, biological control org£inism, plant product, plant 
pest, noxious weed, article, or means of conveyance subject 
to action under subsection (a), or the owner's agent, to treat, 
apply other remedial measures to, destroy, or otherwise dispose 
of the plant, biological control organism, plant product, plant 
pest, noxious weed, Eirticle, or means of conveyance, without 
cost to the Federal Government aind in the manner the Sec-
retary considers appropriate. 
(2) FAILURE TO COMPLY.—If the owner or agent of the 
owner fails to comply with the Secretary's order under this 
subsection, the Secretary may take an action authorized by 
subsection (a) and recover from the owner or agent of the 
owner the costs of any care, handling, application of remedial 
measures, or disposed inciirred by the Secretary in connection 
with actions taken under subsection (a). 
(c) CLASSIFICATION SYSTEM.— 
(1) DEVELOPMENT REQUIRED.—To facilitate control of nox-
ious weeds, the Secreteiry may develop a classification system 
to describe the status and action levels for noxious weeds. 
The classification system may include the ciurent geographic 
distribution, relative threat, and actions initiated to prevent 
introduction or distribution. 
(2) MANAGEMENT PLANS.—In conjimction with the classi-
fication system, the Secretary may develop integrated manage-
ment plans for noxious weeds for the geographic region or 
ecological range where the noxious weed is found in the United 
States. 
(d) 
APPLICATION OF 
LEAST 
DRASTIC 
ACTION.—No 
plant, 
biological control organism, pleuit product, plant pest, noxious weed, 
article, or means of conveyance shall be destroyed, exported, or 
returned to the shipping point of origin, or ordered to be destroyed, 
exported, or returned to the shipping point of origin under this 
section unless, in the opinion of the Secretary, there is no less 
drastic action that is feasible and that would be adequate to prevent 
the dissemination of any plant pest or noxious weed new to or 
not known to be widely prevalent or distributed within and through-
out the United States. 
SEC. 415. DECLARATION OF EXTRAORDINARY EMERGENCY AND 
7 USC 7715. 
RESULTING AUTHORITIES. 
(a) AUTHORITY To DECLARE.—If the Secretary determines that 
an extraordinary emergency exists because of the presence of a 
79-194 O - 00 - 16 : QL 3 Part 1 
114 STAT. 446 
PUBLIC LAW 106-224-^JUNE 20, 2000 
plant pest or noxious weed that is new to or not known to be 
widely prevalent in or distributed within and throughout the United 
States and that the presence of the plant pest or noxious weed 
threatens plants or plsint products of the United States, the Sec-
retairy may— 
(1) hold, seize, quarantine, treat, apply other remedial 
measures to, destroy, or otherwise dispose of, any plant, 
biological control organism, plant product, article, or means 
of conveyguice that the Secretary has reason to believe is 
infested with the plant pest or noxious weed; 
(2) quarantine, treat, or apply other remedial measures 
to any premises, including any plants, biological control orga-
nisms, plant products, articles, or means of conveyance on 
the premises, that the Secretary has reason to believe is 
infested with the plant pest or noxious weed; 
(3) quarantine £iny State or portion of a State in which 
the Secretary finds the plant pest or noxious weed or any 
plant, biological control organism, plant product, article, or 
means of conveyance that the Secretary has reason to believe 
is infested with the plant pest or noxious weed; and 
(4) prohibit or restrict the movement within a State of 
any plant, biological control organism, plant product, article, 
or means of conveyance when the Secretary determines that 
the prohibition or restriction is necessary to prevent the 
dissemination of the pl£uit pest or noxious weed or to eradicate 
the plant pest or noxious weed. 
(b) REQUIRED FINDING OF EMERGENCY.—The Secretary 
may 
take action under this section only upon finding, after review and 
consultation with the Governor or other appropriate official of the 
State affected, that the measures being taken by the State are 
inadequate to eradicate the plant pest or noxious weed. 
(c) NOTIFICATION PROCEDURES.— 
Federal Register, 
(1) IN GENERAL.—Except as provided in paragraph (2), 
publication. 
before any action is taken in any State under this section, 
the Secretary shall notify the Grovemor or other appropriate 
official of the State affected, issue a public announcement, 
and file for publication in the Federal Register a statement 
of— 
(A) the Secretary's findings; 
(B) the action the Secretary intends to take; 
(C) the reasons for the intended action; and 
(D) where practicable, an estimate of the anticipated 
duration of the extraordinary emergency. 
(2) TIME SENSITIVE ACTIONS.—If it is not possible to file 
for publication in the Federal Register prior to taking action, 
the filing shedl be made within a reasonable time, not to exceed 
10 business days, after commencement of the action. 
(d) 
APPLICATION 
OF 
LEAST 
DRASTIC 
ACTION.—No 
plant, 
biological control organism, plant product, plant pest, noxious weed, 
article, or means of conveyance shgdl be destroyed, exported, or 
returned to the shipping point of origin, or ordered to be destroyed, 
exported, or returned to the shipping point of origin under this 
section unless, in the opinion of the Secretary, there is no less 
drastic action that is feasible and that would be adequate to prevent 
the dissemination of any plant pest or noxious weed new to or 
not known to be widely prevsdent or distributed within and through-
out the United States. 
PUBLIC LAW 106-224—JUNE 20, 2000 
114 STAT. 447 
(e) PAYMENT OF COMPENSATION.—The Secretary may pay com-
pensation to any person for economic losses incurred by the person 
as a result of action taken by the Secretary under this section. 
The determination by the Secretary of the amount of any compensa-
tion to be paid under this subsection shall be final and shall 
not be subject to judicial review. 
SEC. 416. RECOVERY OF COMPENSATION FOR UNAUTHORIZED ACTIVT- 
7 USC 7716. 
TIES. 
(a) RECOVERY ACTION.—The owner of any plant, plant biological 
control organism, plant product, plant pest, noxious weed, article, 
or means of conveyance destroyed or otherwise disposed of by the 
Secretary under section 414 or 415 may bring an action against 
the United States to recover just compensation for the destruction 
or disposal of the plant, plant biological control organism, plant 
product, plant pest, noxious weed, article, or means of conveyance 
(not including compensation for loss due to delays incident to deter-
mining eligibility for importation, entry, exportation, movement 
in interstate commerce, or release into the environment), but only 
if the owner establishes that the destruction or disposal was not 
authorized under this title. 
(b) TIME FOR ACTION; LOCATION.—^An action under this section 
shall be brought not later than 1 year after the destruction or 
disposal of the plant, plant biological control organism, plant 
product, plant pest, noxious weed, article, or means of conveyance 
involved. The action may be brought in any United States district 
court where the owner is found, resides, transacts business, is 
licensed to do business, or is incorporated. 
SEC. 417. CONTROL OF GRASSHOPPERS AND MORMON CRICKETS. 
7 USC 7717. 
(a) IN GENERAL.—Subject to the availability of funds pursuant 
to this section, the Secretary shall CEirry out a program to control 
grasshoppers and Mormon crickets on all Federal lands to protect 
rangeland. 
(b) TRANSFER AUTHORITY.— 
.o. 
(1) IN GENERAL.—Subject to paragraph (3), upon the request 
of the Secretary of Agriculture, the Secretary of the Interior 
shall transfer to the Secretary of Agriculture, from any no-
year appropriations, funds for the prevention, suppression, and 
control of actued or potential grasshopper and Mormon cricket 
outbreaks on Federal lands under the jurisdiction of the Sec-
retary of the Interior. The treinsferred fiinds shall be available 
only for the pajmient of obligations incurred on such Federal 
Igmds. 
(2) TRANSFER REQUESTS.—Requests for the transfer of funds 
pursuant to this subsection shall be made as promptly as 
possible by the Secretary. 
(3) LIMITATION.—Fiinds transferred pursuant to this sub-
section may not be used by the Secretary until funds specifically 
appropriated to the Secretary for grasshopper control have 
been exhausted. 
(4) REPLENISHMENT OF TRANSFERRED FUNDS.—Funds trans-
ferred pursuant to this subsection shall be replenished by 
supplemental 
or regular 
appropriations, which 
shall be 
requested as promiptly as possible. 
(c) TREATMENT FOR GRASSHOPPERS AND MORMON CRICKETS.— 
(1) IN GENERAL.—Subject to the availability of funds pursu-
ant to this section, on request of the administering agency 
114 STAT. 448 
PUBLIC LAW 1 0 6 - 2 2 4 - J U N E 20, 2000 
or the agriculture department of an affected State, the Sec-
retary, to protect rangeland, shall immediately treat Federal, 
State, or private lands that are infested with grasshoppers 
or Mormon crickets at levels of economic infestation, unless 
the Secretary determines that delaying treatment will not cause 
greater economic damage to adjacent owners of rangeland. 
(2) OTHER PROGRAMS.—In carrying out this section, the 
Secretary shall work in conjunction with other FedereJ, State, 
and private prevention, control, or suppression efforts to protect 
rangeland. 
(d) FEDERAL COST SHARE OF TREATMENT.— 
(1) CONTROL ON FEDERAL LANDS.—Out of funds made avail-
able or transferred under this section, the Secretary shall pay 
100 percent of the cost of grasshopper or Mormon cricket control 
on Federal lands to protect rangeland. 
(2) CONTROL ON STATE LANDS.—Out of funds made available 
under this section, the Secretary shall pay 50 percent of the 
cost of grasshopper or Mormon cricket control on State lands. 
(3) CONTROL ON PRIVATE LANDS.—Out of funds made avail-
able imder this section, the Secretary shall pay 33.3 percent 
of the cost of grasshopper or Mormon cricket control on private 
lands. 
(e) TRAINING.—From appropriated fimds made available or 
transferred by the Secretary of the Interior to the Secreteuy of 
Agriculture for such purposes, the Secretary of Agriculture shall 
provide adequate funding for a program to train personnel to accom-
plish effectively the objective of this section. 
7 use 7718. 
SEC. 418. CERTIFICATION FOR EXPORTS. 
The Secretary may certify as to the freedom of pleuits, plant 
products, or biological control organisms from plant pests or noxious 
weeds, or the exposure of plants, plaint products, or biological control 
organisms to plant pests or noxious weeds, according to the 
phytosanitary or other requirements of the countries to which the 
plants, plant products, or biological control organisms may be 
exported. 
Subtitle B—Inspection and Enforcement 
7 use 7731. 
SEC. 421. INSPECTIONS, SEIZURES, AND WARRANTS. 
(a) ROLE OF ATTORNEY GENERAL.—The activities authorized 
by this section shall be carried out consistent with guidelines 
approved by the Attorney General. 
(b) WARRANTLESS INSPECTIONS.—The Secretary may stop and 
inspect, without a warrant, any person or means of conveyance 
moving— 
(1) into the United States to determine whether the person 
or means of conveyance is CEirrying any plant, plant product, 
biological control orgsmism, plant pest, noxious weed, or £irticle 
subject to this title; 
(2) in interstate commerce, upon probable cause to believe 
that the person or means of conveyance is carrying any plant, 
plant product, biological control organism, plant pest, noxious 
weed, or article subject to this title; and 
(3) in intrastate commerce from or within any State, portion 
of a State, or premises quarantined as part of a extraordinary 
PUBLIC LAW 106-224—JUNE 20, 2000 
114 STAT. 449 
emergency declared under section 415 upon probable cause 
to believe that the person or means of conveyance is carrying 
any plant, plant product, biological control organism, plant 
pest, noxious weed, or article regulated under that section 
or is moving subject to that section. 
(c) INSPECTIONS WITH A WARRANT.— 
(1) GENERAL AUTHORITY.—The Secretary may enter, with 
a warrant, any premises in the United States for the purpose 
of conducting investigations or making inspections and seizures 
under this title. 
(2) 
APPLICATION AND ISSUANCE OF A WARRANT.—Upon 
proper oath or affirmation showing probable cause to believe 
that there is on certain premises any plant, plant product, 
biological control organism, plant pest, noxious weed, article, 
facility, or means of conveyance regulated under this title, 
a United States judge, a judge of a court of record in the 
United States, or a United States magistrate judge may, within 
the judge's or magistrate's jurisdiction, issue a warrant for 
the entry upon the premises to conduct any investigation or 
make any inspection or seizure under this title. The warrant 
may be applied for and executed by the Secretary or any 
United States Marshal. 
SEC. 422. COLLECTION OF INFORMATION. 
7 USC 7732. 
The Secretary may gather and compile information and conduct 
any investigations the Secretary considers necessary for the 
administration and enforcement of this title. 
SEC. 423. SUBPOENA AUTHORITY. 
7 USC 7733. 
(a) AUTHORITY TO ISSUE.—The Secretary shall have power to 
subpoena the attendance and testimony of £uiy witness, and the 
production of all documentary evidence relating to the administra-
tion or enforcement of this title or any matter under investigation 
in connection with this title. 
(b) LOCATION OF PRODUCTION.—The attendance of any witness 
and production of docimientary evidence may be required from 
any place in the United States at any designated place of hearing. 
(c) ENFORCEMENT OF SUBPOENA.—In the case of disobedience 
to a subpoena by any person, the Secretary may request the 
Attorney General to invoke the aid of any court of the United 
States within the jurisdiction in which the investigation is con-
ducted, or where the person resides, is found, transacts business, 
is licensed to do business, or is incorporated, in requiring the 
attendance and testimony of any witness and the production of 
documentary evidence. In case of a refusal to obey a subpoena 
issued to any person, a court may order the person to appear 
before the Secretary and give evidence concerning the matter in 
question or to produce documentary evidence. Any failure to obey 
the court's order may be piinished by the court as a contempt 
of the court. 
(d) COMPENSATION.—Witnesses summoned by the Secretary 
shall be paid the same fees and mileage that are paid to witnesses 
in courts of the United States, and witnesses whose depositions 
are taken and the persons taking the depositions shall be entitled 
to the same fees that are paid for similar services in the courts 
of the United States. 
(e) PROCEDURES.—The Secretary shall publish procedures for Publication. 
the issuance of subpoenas under this section. Such procedures shall 
114 STAT. 450 
PUBLIC LAW 106-224—JUNE 20, 2000 
include a requirement that subpoenas be reviewed for legal suffi-
ciency and signed by the Secretary. If the authority to sign a 
subpoena is delegated, the agency receiving the delegation shall 
seek review for legal sufficiency outside that agency. 
(f) SCOPE OF SUBPOENA.—Subpoenas for witnesses to attend 
court in any judicial district or to testify or produce evidence at 
an administrative hearing in any judicial district in any action 
or proceeding Eirising under this title may run to any other judicial 
district. 
7 use 7734. 
SEC. 424. PENALTIES FOR VIOLATION. 
(a) CRIMINAL PENALTIES.—^Any person that knowingly violates 
this title, or that knowingly forges, counterfeits, or, without 
authority from the Secretary, uses, alters, defaces, or destroys any 
certificate, permit, or other document provided for in this title 
shall be guilty of a misdemeanor, and, upon conviction, shall be 
fined in accordance with title 18, United States Code, imprisoned 
for a period not exceeding 1 year, or both. 
(b) CIVIL PENALTIES.— 
(1) IN GENERAL.—^Any person that violates this title, or 
that forges, counterfeits, or, without authority from the Sec-
retary, uses, alters, defaces, or destroys any certificate, permit, 
or other document provided for in this title may, after notice 
and opportunity for a hearing on the record, be assessed a 
civil penalty by the Secreteiry that does not exceed the greater 
of— 
(A) $50,000 in the case of any individual (except that 
the civil penalty may not exceed $1,000 in the case of 
an initied violation of this title by an individual moving 
regulated articles not for monetary gain), $250,000 in the 
case of any other person for each violation, and $500,000 
for all violations adjudicated in a single proceeding; or 
(B) twice the gross gain or gross loss for any violation, 
forgery, counterfeiting, unauthorized use, defacing, or 
destruction of a certificate, permit, or other document pro-
vided for in this title that results in the person deriving 
pecuniary gedn or causing pecuniary loss to another. 
(2) FACTORS IN DETERMINING CIVIL PENALTY.—In deter-
mining the amount of a civil penalty, the Secretary shsdl take 
into accoimt the nature, circumstance, extent, and gravity of 
the violation or violations and the Secretary may consider, 
with respect to the violator— 
(A) ability to pay; 
(B) effect on ability to continue to do business; 
(C) any history of prior violations; 
(D) the degree of culpability; and 
(E) any other factors the Secretary considers appro-
priate. 
(3) SETTLEMENT OF CIVIL PENALTIES.—The Secretary may 
compromise, modify, or remit, with or without conditions, any 
civil penalty that may be assessed under this subsection. 
(4) FINALITY OF ORDERS.—The order of the Secretary 
assessing a civil penalty shall be treated as a final order review-
able under chapter 158 of title 28, United States Code. The 
validity of the Secretary's order may not be reviewed in an 
action to collect the civil penalty. Any civil peneJty not paid 
in full when due under an order assessing the civil penalty 
PUBLIC LAW 106-224—JUNE 20, 2000 
114 STAT. 451 
shall thereafter accrue interest until paid at the rate of interest 
applicable to civil judgments of the courts of the United States. 
(c) LIABILITY FOR ACTS OF AN AGENT.—When construing and 
enforcing this title, the act, omission, or failure of any officer, 
agent, or person acting for or employed by any other person within 
the scope of his or her emplo3Tnent or office, shall be deemed 
also to be the act, omission, or failure of the other person. 
(d) GUIDELINES FOR CIVIL PENALTIES.—The Secretary shall 
coordinate with the Attorney General to establish guidelines to 
determine luider what circumstances the Secreteuy may issue a 
civil penalty or suitable notice of warning in lieu of prosecution 
by the Attorney General of a violation of this title. 
SEC. 425. ENFORCEMENT ACTIONS OF ATTORNEY GENERAL. 
7 USC 7735. 
The Attorney General may— 
(1) prosecute, in the name of the United States, all criminal 
violations of this title that are referred to the Attorney General 
by the Secretary or are brought to the notice of the Attorney 
General by any person; 
(2) bring an action to enjoin the violation of or to compel 
compliance with this title, or to enjoin any interference by 
any person with the Secretary in carrying out this title, when-
ever the Secretary has reason to believe that the person has 
violated, or is about to violate this title, or has interfered, 
or is about to interfere, with the Secretary; and 
(3) bring an action for the recovery of any unpaid civil 
penalty, funds luider reimbursable agreements, late pajnnent 
penalty, or interest assessed under this title. 
SEC. 426. COURT JURISDICTION. 
7 USC 7736. 
(a) IN GENERAL.—The United States district courts, the District 
Court of Guam, the District Court of the Virgin Islands, the highest 
court of American Samoa, and the United States courts of other 
territories and possessions are vested with jurisdiction in all cases 
Euising under this title. Any action arising under this title may 
be brought, and process may be served, in the judicial district 
where a violation or interference occurred or is about to occur, 
or where the person charged with the violation, interference, 
impending violation, impending interference, or failure to pay 
resides, is found, transacts business, is licensed to do business, 
or is incorporated. 
(b) EXCEPTION.—This section does not apply to the imposition 
of civil penalties under section 424(b). 
Subtitle C—^Miscellaneous Provisions 
SEC. 431. COOPERATION. 
7 USC 7751. 
(a) IN GENERAL.—The Secretary may cooperate with other Fed-
eral agencies or entities. States or political subdivisions of States, 
national governments, local governments of other nations, domestic 
or international organizations, domestic or international associa-
tions, and other persons to cany out this title. 
(b) RESPONSIBILITY.—The individual or entity cooperating with 
the Secretary under subsection (a) shall be responsible for— 
(1) the authority necessary to conduct the operations or 
take measiu-es on all land and properties within the foreign 
114 STAT. 452 
PUBLIC LAW 106-224-^UNE 20, 2000 
country or State, other than those owned or controlled by 
the United States; and 
(2) other facilities and means as the SecretEiry determines 
necessary. 
(c) TRANSFER OF BIOLOGICAL CONTROL METHODS.—The Sec-
retary may transfer to a State, Federal agency, or other person 
biological control methods using biological control organisms against 
plant pests or noxious weeds. 
(d) COOPERATION IN PROGRAM ADMINISTRATION.—The Secretary 
may cooperate with State authorities or other persons in the 
administration of programs for the improvement of plants, plant 
products, and biological control organisms. 
(e) PHYTOSANITARY ISSUES.—The Secretary shall ensure that 
phytosanitary issues involving imports and exports are addressed 
based on sound science and consistent with applicable international 
agreements. To accomplish these goals, the Secretary may— 
(1) conduct direct negotiations with plant health officials 
or other appropriate officials of other countries; 
(2) provide technical assistance, training, and guidance to 
any country requesting such assistance in the development 
of agricultural health protection systems and import/export 
systems; and 
(3) maintain plant health and quEirantine expertise in other 
countries— 
(A) to facilitate the establishment of phj^osanitary sys-
tems and the resolution of phytosanitary issues; 
(B) to assist those countries with agricultural health 
protection activities; and 
(C) to provide general liaison on agricultural health 
issues with the plant health or other appropriate officieds 
of the country. 
7 use 7752. 
SEC. 432. BUILDINGS, LAND, PEOPLE, CLAIMS, AND AGREEMENTS. 
(a) IN GENERAL.—To the extent necessary to carry out this 
title, the Secretary may acquire and maintain all real or personal 
property for special purposes and employ any persons, make grants, 
and enter into any contracts, cooperative agreements, memoranda 
of understanding, or other agreements. 
(b) TORT CLAIMS.— 
(1) IN GENERAL.—Except as provided in paragraph (2), the 
Secretary may pay tort claims in the manner authorized in 
the first paragraph of section 2672 of title 28, United States 
Code, when the claims arise outside the United States in 
connection with activities that are authorized under this title. 
(2) REQUIREMENTS OF CLAIM.—A cledm may not be allowed 
under this subsection unless the claim is presented in writing 
to the Secretary within 2 years after the date on which the 
cledm accrues. 
7 use 7753. 
SEC. 433. REIMBURSABLE AGREEMENTS. 
(a) AUTHORITY TO ENTER INTO AGREEMENTS.—The Secretary 
may enter into reimbursable fee agreements with persons for 
preclearance of plants, plant products, biological control organisms, 
and articles at locations outside the United States for movement 
into the United States. 
(b) FUNDS COLLECTED FOR PRECLEARANCE.—Funds collected 
for precleeirance shall be credited to accounts which may be estab-
lished by the Secretary for this purpose and shall remain available 
PUBLIC LAW 106-224-^JUNE 20, 2000 
114 STAT. 453 
until expended for the preclearance activities without fiscal year 
limitation. 
(c) PAYMENT OF EMPLOYEES.— 
(1) IN GENERAL.—Notwithstanding any other law, the Sec-
retary may pay employees of the Department of Agriculture 
performing services relating to imports into and exports from 
the United States, for all overtime, night, or holiday work 
performed by them, at rates of pay established by the Secret£uy. 
(2) REIMBURSEMENT OF THE SECRETARY.— 
(A) IN GENERAL.—The Secretary may require persons 
for whom the services are performed to reimburse the 
Secretary for any sums of money paid by the Secretary 
for the services. 
(B) USE OF FUNDS.—^All funds collected under this para-
graph shall be credited to the account that incurs the 
costs and shall remain available until expended without 
fiscal year limitation. 
(d) LATE PAYMENT PENALTIES.— 
(1) COLLECTION.—Upon failure to reimburse the Secretary 
in accordance with this section, the Secretary may assess a 
late payment penalty, and the overdue funds shall accrue 
interest, as required by section 3717 of title 31, United States 
Code. 
(2) USE OF FUNDS.—^Any late payment peneJty and any 
accrued interest shall be credited to the account that incurs 
the costs and shall remain available until expended without 
fiscal year limitation. 
SEC. 434. REGULATIONS AND ORDERS. 
7 USC 7754. 
The Secretary may issue such regulations and orders as the 
Secretary considers necessary to carry out this title. 
SEC. 435. PROTECTION FOR MAIL HANDLERS. 
7 USC 7755. 
This title shall not apply to any employee of the United States 
in the performance of the duties of the employee in handling the 
mail. 
SEC. 436. PREEMPTION. 
7 USC 7756. 
(a) REGULATION OF FOREIGN COMMERCE.—No State or political 
subdivision of a State may regulate in foreign commerce any article, 
means of conveyance, plant, biological control orgEinism, plant pest, 
noxious weed, or plant product in order— 
(1) to control a plant pest or noxious weed; 
(2) to eradicate a plant pest or noxious weed; or 
(3) prevent the introduction or dissemination of a biological 
control organism, plant pest, or noxious weed. 
(b) REGULATION OF INTERSTATE COMMERCE.— 
(1) IN GENERAL.—Except as provided in paragraph (2), no 
State or political subdivision of a State may regulate the move-
ment in interstate commerce of any article, means of convey-
ance, plant, biological control organism, plant pest, noxious 
weed, or plant product in order to control a plant pest or 
noxious weed, eradicate a plant pest or noxious weed, or prevent 
the introduction or dissemination of a biological control orga-
nism, plant pest, or noxious weed, if the Secretary has issued 
a regulation or order to prevent the dissemination of the 
biological control organism, plemt pest, or noxious weed within 
the United States. 
114 STAT. 454 
PUBLIC LAW 106-224—JUNE 20, 2000 
(2) EXCEPTIONS.— 
(A) REGULATIONS CONSISTENT WITH FEDERAL REGULA-
TIONS.—^A State or a political subdivision of a State may 
impose prohibitions or restrictions upon the movement in 
interstate commerce of Eirticles, means of conveyance, 
plants, biological control organisms, plant pests, noxious 
weeds, or plant products that are consistent with and do 
not exceed the regulations or orders issued by the Sec-
retary. 
(B) SPECLAL NEED.—^A State or political subdivision 
of a State may impose prohibitions or restrictions upon 
the movement in interstate commerce of articles, means 
of conveyetQce, plants, plant products, biological control 
organisms, plant pests, or noxious weeds that are in addi-
tion to the prohibitions or restrictions imposed by the Sec-
retary, if the State or political subdivision of a State dem-
onstrates to the Secretsiry and the Secretary finds that 
there is a special need for additional prohibitions or restric-
tions based on sound scientific data or a thorough risk 
assessment. 
7 use 7757. 
SEC. 437. SEVERABILITY. 
If any provision of this title or application of any provision 
of this title to any person or circumsteinces is held invgdid, the 
remainder of this title and the application of the provision to 
other persons and circtunstances shall not be affected by the inva-
Hdity. 
7 use 7758. 
SEC. 438. REPEAL OF SUPERSEDED LAWS. 
(a) REPEAL.—The following provisions of law are repealed: 
(1) The Act of August 20, 1912 (commonly known as the 
"Plant Quarantine Act") (7 U.S.C. 151-164a, 167). 
(2) The Federal Plant Pest Act (7 U.S.C. 150aa et seq. 
and 7 U.S.C. 147a note). 
(3) Subsections (a) through (e) of section 102 of the Depart-
ment of Agriculture Organic Act of 1944 (7 U.S.C. 147a). 
(4) The Federal Noxious Weed Act of 1974 (7 U.S.C. 2801 
et seq.), except the first section and section 15 of that Act 
(7 U.S.C. 2801 note and 7 U.S.C. 2814). 
(5) The Act of January 31, 1942 (commonly known as 
the "Mexican Border Act") (7 U.S.C. 149). 
(6) The Joint Resolution of April 6, 1937 (commonly known 
as the "Insect Control Act") (7 U.S.C. 148 et seq.). 
(7) The Halogeton Glomeratus Act (7 U.S.C. 1651 et seq.). 
(8) The Golden Nematode Act (7 U.S.C. 150 et seq.). 
(9) Section 1773 of the Food Security Act of 1985 (Public 
Law 99-198; 7 U.S.C. 148f). 
(b) 
EMERGENCY TRANSFER 
AUTHORITY 
REGARDING PLANT 
PESTS.—The first section of Public Law 97-46 (7 U.S.C. 147b) 
is amended— 
(1) by striking "plant pests or"; and 
(2) by striking "section 102 of the Act of September 21, 
1944, as amended (7 U.S.C. 147a), and". 
(c) EFFECT ON REGULATIONS.—Regulations issued under the 
authority of a provision of law repealed by subsection (a) shall 
remain in effect until such time as the Secretary issues a regulation 
under section 434 that supersedes the eeirlier regulation. 
PUBLIC LAW 106-224—JUNE 20, 2000 
114 STAT. 455 
Subtitle D—^Authorization of 
Appropriations 
SEC. 441. AUTHORIZATION OF APPROPRIATIONS. 
There are authorized to be appropriated such amounts as may 
be necessary to carry out this title. Except as specifically authorized 
by law, no part of the money appropriated under this section shall 
be used to pay indemnities for property injured or destroyed by 
or at the direction of the Secretary. 
SEC. 442. TRANSFER AUTHORITY. 
(a) AUTHORITY TO TRANSFER CERTAIN FUNDS.—In connection 
with an emergency in which a plant pest or noxious weed threatens 
any segment of the agricultural production of the United States, 
the Secretary may transfer from other appropriations or funds 
available to the agencies or corporations of the Department of 
Agriculture such amounts as the Secretary considers necessary 
to be available in the emergency for the arrest, control, eradication, 
and prevention of the spread of the plant pest or noxious weed 
and for related expenses. 
(b) AVAILABILITY.—^Any funds transferred under this section 
shall remain available for such purposes without fiscal year limita-
tion. 
TITLE V—INSPECTION ANIMALS 
7 use 7771. 
7 use 7772. 
SEC. 501. CIVIL PENALTY. 
7 USC 2279e. 
(a) IN GENERAL.—^Any person that causes harm to, or interferes 
with, an animal used for the purposes of official inspections by 
the Department of Agriculture, may, after notice and opportunity 
for a hearing on the record, he assessed a civil penalty by the 
Secretary of Agriculture not to exceed $10,000. 
(b) FACTORS IN DETERMINING CIVIL PENALTY.—In determining 
the amount of a civil penalty, the Secretary shall take into account 
the nature, circumstance, extent, and gravity of the offense. 
(c) SETTLEMENT OF CIVIL PENALTIES.—The Secretary may com-
promise, modify, or remit, with or without conditions, any civil 
penalty that may be assessed under this section. 
(d) FINALITY OF ORDERS.— 
(1) IN GENERAL.—The order of the Secretary assessing a 
civil penalty shall be treated as a final order reviewable under 
chapter 158 of title 28, United States Code. The validity of 
the order of the Secretary may not be reviewed in an action 
to collect the civil penedty. 
(2) INTEREST.—^Any civil penalty not paid in full when 
due under an order assessing the civil penalty shall thereafter 
accrue interest until p£dd at the rate of interest applicable 
to civil judgments of the courts of the United States. 
SEC. 502. SUBPOENA AUTHORITY. 
7 USC 2279f. 
(a) IN GENERAL.—The Secretary shall have power to subpoena 
the attendance and testimony of any witness, and the production 
of all documentary evidence relating to the enforcement of section 
501 or any matter under investigation in connection with this 
title. 
114 STAT. 456 
PUBLIC LAW 106-224—JUNE 20, 2000 
Publication. 
(b) LOCATION OF PRODUCTION.—The attendance of any witness 
and the production of documentary evidence may be required from 
any place in the United States at any designated place of hearing. 
(c) ENFORCEMENT OF SUBPOENA.—In the case of disobedience 
to a subpoena by any person, the Secreteiry may request the 
Attorney General to invoke the aid of any court of the United 
States within the jurisdiction in which the investigation is con-
ducted, or where the person resides, is found, transacts business, 
is licensed to do business, or is incorporated, in requiring the 
attendance and testimony of any witness and the production of 
documentary evidence. In case of a refusal to obey a subpoena 
issued to any person, a court may order the person to appear 
before the Secretary and give evidence concerning the matter in 
question or to produce documentary evidence. Any fgdlure to obey 
the court's order may be punished by the court as a contempt 
of the court. 
(d) COMPENSATION.—Witnesses summoned by the Secretary 
shall be paid the same fees and mileage that are paid to witnesses 
in courts of the United States, and witnesses whose depositions 
are taken, and the persons taking the depositions shall be entitled 
to the same fees that are paid for similar services in the courts 
of the United States. 
(e) PROCEDURES.—The Secretary shall publish procedures for 
the issuance of subpoenas under this section. Such procedures shall 
include a requirement that subpoenas be reviewed for legal suffi-
ciency and signed by the Secretary. If the authority to sign a 
subpoena is delegated, the agency receiving the delegation shall 
seek review for legal sufficiency outside that agency. 
(f) SCOPE OF SUBPOENA.—Subpoenas for witnesses to attend 
court in any judicial district or testify or produce evidence at an 
administrative hearing in any judicial district in any action or 
proceeding arising under section 501 may run to any other judicial 
district. 
Approved June 20, 2000. 
LEGISLATIVE HISTORY—H.R. 2559 (S. 2251): 
HOUSE REPORTS: Nos. 106-300 and Pt. 2 (Comm. on Agriculture). 
S E N A T E REPORTS: No. 106-247 accompanying S. 2251 (Comm. on Agriculture, 
Nutrition, and Forestry). 
CONGRESSIONAL RECORD: 
Vol. 145 (1999): Sept. 29, considered and passed House. 
Vol. 146 (2000): Mar. 22, 23, considered and passed Senate, amended, in lieu 
of S. 2251. 
May 25, Senate and House agreed to conference report. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 36 (2000): 
June 20, Presidential statement.