[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H. Res. 559 Engrossed in House (EH)]

H. Res. 559

                In the House of Representatives, U. S.,

                                                       October 3, 1994.
    Resolved, That upon adoption of this resolution, the House shall be 
considered to have taken from the Speaker's table the bill (H.R. 4217) to reform 
the Federal crop insurance program, and for other purposes, with the Senate 
amendment thereto, and to have concurred in the Senate amendment with an 
amendment as follows:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Federal Crop Insurance 
Reform and Department of Agriculture Reorganization Act of 1994''.
    (b) Table of Contents.--The table of contents of this Act is as follows:

    Sec. 1. Short title; table of contents.
                 TITLE I--FEDERAL CROP INSURANCE REFORM

    Sec. 101. Short title; references.
    Sec. 102. Definitions.
    Sec. 103. Members of Board of Directors of Corporation.
    Sec. 104. General powers.
    Sec. 105. Personnel.
    Sec. 106. Crop insurance.
    Sec. 107. Crop insurance yield coverage.
    Sec. 108. Preemption.
    Sec. 109. Advisory Committee.
    Sec. 110. Funding.
    Sec. 111. Noninsured crop disaster assistance.
    Sec. 112. Payment and income limitations.
    Sec. 113. Producer eligibility.
    Sec. 114. Ineligibility for catastrophic risk and noninsured 
                                assistance payments.
    Sec. 115. Elimination of gender references.
    Sec. 116. Prevented planting.
    Sec. 117. Report on improving dissemination of crop insurance 
                                information.
    Sec. 118. Crop insurance provider evaluation.
    Sec. 119. Conforming amendments.
    Sec. 120. Effective date.
           TITLE II--DEPARTMENT OF AGRICULTURE REORGANIZATION

    Sec. 201. Short title.
    Sec. 202. Purpose.
    Sec. 203. Definitions.
             Subtitle A--General Reorganization Authorities

    Sec. 211. Transfer of Department functions to Secretary of 
                                Agriculture.
    Sec. 212. Authority of Secretary to delegate transferred 
                                functions.
    Sec. 213. Reductions in number of department personnel.
    Sec. 214. Consolidation of headquarters offices.
    Sec. 215. Combination of field offices.
    Sec. 216. Improvement of information sharing.
    Sec. 217. Reports by the Secretary.
    Sec. 218. Assistant Secretaries of Agriculture.
    Sec. 219. Pay increases prohibited.
           Subtitle B--Farm and Foreign Agricultural Services

    Sec. 225. Under Secretary of Agriculture for Farm and Foreign 
                                Agricultural Services.
    Sec. 226. Consolidated Farm Service Agency.
    Sec. 227. State, county, and area committees.
          Subtitle C--Rural Economic and Community Development

    Sec. 231. Under Secretary of Agriculture for Rural Economic and 
                                Community Development.
    Sec. 232. Rural Utilities Service.
    Sec. 233. Rural Housing and Community Development Service.
    Sec. 234. Rural Business and Cooperative Development Service.
    Sec. 235. Conforming amendments regarding Rural Electrification 
                                Administration.
           Subtitle D--Food, Nutrition, and Consumer Services

    Sec. 241. Under Secretary of Agriculture for Food, Nutrition, 
                                and Consumer Services.
             Subtitle E--Natural Resources and Environment

    Sec. 245. Under Secretary of Agriculture for Natural Resources 
                                and Environment.
    Sec. 246. Natural Resources Conservation Service.
    Sec. 247. Reorganization of Forest Service.
             Subtitle F--Research, Education, and Economics

    Sec. 251. Under Secretary of Agriculture for Research, 
                                Education, and Economics.
    Sec. 252. Program staff.
                        Subtitle G--Food Safety

    Sec. 261. Under Secretary of Agriculture for Food Safety.
    Sec. 262. Conditions for implementation of alterations in the 
                                level of additives allowed in 
                                animal diets.
                 Subtitle H--National Appeals Division

    Sec. 271. Definitions.
    Sec. 272. National Appeals Division and Director.
    Sec. 273. Transfer of functions.
    Sec. 274. Notice and opportunity for hearing.
    Sec. 275. Informal hearings.
    Sec. 276. Right of participants to Division hearing.
    Sec. 277. Division hearings.
    Sec. 278. Director review of determinations of hearing 
                                officers.
    Sec. 279. Judicial review.
    Sec. 280. Implementation of final determinations of Division.
    Sec. 281. Conforming amendments relating to National Appeals 
                                Division.
    Sec. 282. Expansion of issues covered by State mediation 
                                programs.
    Sec. 283. Authorization of appropriations.
          Subtitle I--Miscellaneous Reorganization Provisions

    Sec. 291. Successorship provisions relating to bargaining units 
                                and exclusive representatives.
    Sec. 292. Purchase of American-made equipment and products.
    Sec. 293. Miscellaneous conforming amendments.
    Sec. 294. Removal of obsolete administrative provisions.
    Sec. 295. Proposed conforming amendments.
    Sec. 296. Termination of authority.
                        TITLE III--MISCELLANEOUS

    Sec. 301. Poultry labeling.
    Sec. 302. First Amendment rights of employees of the United 
                                States Department of Agriculture.
    Sec. 303. Adjusted cost of thrifty food plan.
    Sec. 304. Office of Risk Assessment and Cost-Benefit Analysis.
    Sec. 305. Fair and equitable treatment of socially 
                                disadvantaged producers.
    Sec. 306. Aviation inspections.

                     TITLE I--FEDERAL CROP INSURANCE REFORM

SEC. 101. SHORT TITLE; REFERENCES.

    (a) Short Title.--This title may be cited as the ``Federal Crop Insurance 
Reform Act of 1994''.
    (b) References to Federal Crop Insurance Act.--Except as otherwise expressly 
provided, whenever in this title an amendment or repeal is expressed in terms of 
an amendment to, or repeal of, a section or other provision, the reference shall 
be considered to be made to a section or other provision of the Federal Crop 
Insurance Act (7 U.S.C. 1501 et seq.).

SEC. 102. DEFINITIONS.

    (a) In General.--Section 502 (7 U.S.C. 1502) is amended--
            (1) by striking the section heading and ``Sec. 502.'' and inserting 
        the following:

``SEC. 502. PURPOSE AND DEFINITIONS.

    ``(a) Purpose.--''; and
            (2) by adding at the end the following new subsection:
    ``(b) Definitions.--As used in this title:
            ``(1) Additional coverage.--The term `additional coverage' means a 
        plan of crop insurance coverage providing a level of coverage greater 
        than the level available under catastrophic risk protection.
            ``(2) Approved insurance provider.--The term `approved insurance 
        provider' means a private insurance provider that has been approved by 
        the Corporation to provide insurance coverage to producers participating 
        in the Federal crop insurance program established under this title.
            ``(3) Board.--The term `Board' means the Board of Directors of the 
        Corporation established under section 505(a).
            ``(4) Corporation.--The term `Corporation' means the Federal Crop 
        Insurance Corporation established under section 503.
            ``(5) Department.--The term `Department' means the United States 
        Department of Agriculture.
            ``(6) Loss ratio.--The term `loss ratio' means the ratio of all sums 
        paid by the Corporation as indemnities under any eligible crop insurance 
        policy to that portion of the premium designated for anticipated losses 
        and a reasonable reserve, other than that portion of the premium 
        designated for operating and administrative expenses.
            ``(7) Secretary.--The term `Secretary' means the Secretary of 
        Agriculture.
            ``(8) Transitional yield.--The term `transitional yield' means the 
        maximum average production per acre or equivalent measure that is 
        assigned to acreage for a crop year by the Corporation in accordance 
        with the regulations of the Corporation whenever the producer fails--
                    ``(A) to certify that acceptable documentation of production 
                and acreage for the crop year is in the possession of the 
                producer; or
                    ``(B) to present the acceptable documentation on the demand 
                of the Corporation or an insurance company reinsured by the 
                Corporation.''.
    (b) Conforming Amendments.--
            (1) The first sentence of section 503 (7 U.S.C. 1503) is amended by 
        striking ``(herein called the Corporation)''.
            (2) Section 504 (7 U.S.C. 1504) is amended--
                    (A) in subsection (a), by striking ``Board of Directors of 
                the Corporation'' and inserting ``Board''; and
                    (B) in subsection (d), by striking ``Federal Crop Insurance 
                Corporation'' and inserting ``Corporation''.
            (3) The first sentence of section 505(a) (7 U.S.C. 1505(a)) is 
        amended by striking ``(hereinafter called the `Board')''.
            (4) Except in section 502, the Act is amended--
                    (A) by striking ``Board of Directors'' each place it appears 
                and inserting ``Board'';
                    (B) by striking ``Department of Agriculture'' each place it 
                appears and inserting ``Department''; and
                    (C) by striking ``Secretary of Agriculture'' each place it 
                appears and inserting ``Secretary''.

SEC. 103. MEMBERS OF BOARD OF DIRECTORS OF CORPORATION.

    The second sentence of section 505(a) (7 U.S.C. 1505(a)) is amended--
            (1) by striking ``or Assistant Secretary'' the first place it 
        appears; and
            (2) by striking ``the Under Secretary or Assistant Secretary of 
        Agriculture responsible for the farm credit programs of the Department 
        of Agriculture'' and inserting ``one additional Under Secretary of 
        Agriculture (as designated by the Secretary of Agriculture)''.

SEC. 104. GENERAL POWERS.

    Section 506 (7 U.S.C. 1506) is amended--
            (1) by redesignating subsections (j) through (n) as subsections (k) 
        through (o), respectively;
            (2) by inserting after subsection (i) the following new subsection:
    ``(j) Settling Claims.--The Corporation shall have the authority to make 
final and conclusive settlement and adjustment of any claim by or against the 
Corporation or a fiscal officer of the Corporation.'';
            (3) in subsection (l) (as so redesignated)--
                    (A) in the first sentence, by inserting ``, and issue 
                regulations,'' after ``agreements''; and
                    (B) in the second sentence, by striking ``contracts or 
                agreements'' each place it appears and inserting ``contracts, 
                agreements, or regulations'';
            (4) in subsection (n)(1) (as so redesignated), by striking 
        subparagraph (B) and inserting the following new subparagraph:
                    ``(B) disqualify the person from purchasing catastrophic 
                risk protection or receiving noninsured assistance for a period 
                of not to exceed 2 years, or from receiving any other benefit 
                under this title for a period of not to exceed 10 years.'';
            (5) in subsection (o) (as so redesignated)--
                    (A) by redesignating paragraphs (1) through (4) as 
                subparagraphs (A) through (D) and aligning the margins of each 
                subparagraph with the margins of subparagraph (A) of subsection 
                (n)(1) (as redesignated by paragraph (1));
                    (B) by striking ``(o) Actuarial Soundness.--The 
                Corporation'' and inserting the following:
    ``(o) Actuarial Soundness.--
            ``(1) Projected loss ratio as of october 1, 1995.--The 
        Corporation'';
                    (C) in subparagraph (A) (as redesignated by subparagraph 
                (A)), by striking ``from obtaining adequate Federal crop 
                insurance, as determined by the Corporation'' and inserting 
                ``(as defined by the Secretary) from obtaining Federal crop 
                insurance'';
                    (D) in subparagraph (C) (as so redesignated)--
                            (i) by inserting ``, agents, and loss adjusters'' 
                        after ``participating producers''; and
                            (ii) by inserting ``, agents, and loss adjusters'' 
                        after ``identify insured producers''; and
                    (E) by adding at the end the following new paragraphs:
            ``(2) Projected loss ratio as of october 1, 1998.--The Corporation 
        shall take such actions, including the establishment of adequate 
        premiums, as are necessary to improve the actuarial soundness of Federal 
        multiperil crop insurance made available under this title to achieve, on 
        and after October 1, 1998, an overall projected loss ratio of not 
        greater than 1.075.
            ``(3) Nonstandard classification system.--To the extent that the 
        Corporation uses the nonstandard classification system, the Corporation 
        shall apply the system to all insured producers in a fair and consistent 
        manner.''; and
            (6) by adding at the end the following new subsections:
    ``(p) Regulations.--The Secretary and the Corporation are each authorized to 
issue such regulations as are necessary to carry out this title.
    ``(q) Program Compliance.--
            ``(1) Timeliness.--The Corporation shall work actively with approved 
        insurance providers to address program compliance and integrity issues 
        as the issues develop.
            ``(2) Notification of compliance problems.--The Corporation shall 
        notify in writing any approved insurance provider with whom the 
        Corporation has an agreement under this title 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. The notice shall be given within 3 years of 
        the end of the insurance period during which the error, omission, or 
        failure is alleged to have occurred, except that this time limit shall 
        not apply with respect to errors, omissions, or procedural violations 
        that are willful or intentional. The failure to timely provide the 
        notice required under this subsection shall relieve the approved 
        insurance provider from the debt owed the Corporation.
    ``(r) Purchase of American-Made Equipment and Products.--
            ``(1) Sense of congress.--It is the sense of Congress that, to the 
        greatest extent practicable, all equipment and products purchased by the 
        Corporation using funds made available to the Corporation should be 
        American-made.
            ``(2) Notice requirement.--In providing financial assistance to, or 
        entering into any contract with, any entity for the purchase of 
        equipment and products to carry out this title, the Corporation, to the 
        greatest extent practicable, shall provide to the entity a notice 
        describing the statement made in paragraph (1).''.

SEC. 105. PERSONNEL.

    Section 507 (7 U.S.C. 1507) is amended--
            (1) in subsection (a), by striking ``, and county crop insurance 
        committeemen'';
            (2) in subsection (d), by striking ``of this Act,'' and all that 
        follows through ``agency''; and
            (3) by adding at the end the following new subsection:
    ``(g)(1) The Corporation shall establish a management-level position to be 
known as the Specialty Crops Coordinator.
    ``(2) The Specialty Crops Coordinator shall have primary responsibility for 
addressing the needs of specialty crop producers, and for providing information 
and advice, in connection with the activities of the Corporation to improve and 
expand the insurance program for specialty crops. In carrying out this 
paragraph, the Specialty Crops Coordinator shall act as the liaison of the 
Corporation with representatives of specialty crop producers and assist the 
Corporation with the knowledge, expertise, and familiarity of the producers with 
risk management and production issues pertaining to specialty crops.
    ``(3) The Specialty Crops Coordinator shall use information collected from 
Corporation field office directors in States in which specialty crops have a 
significant economic effect and from other sources, including the extension 
service and colleges and universities.''.

SEC. 106. CROP INSURANCE.

    Section 508 (7 U.S.C. 1508) is amended to read as follows:

``SEC. 508. CROP INSURANCE.

    ``(a) Authority to Offer Insurance.--
            ``(1) In general.--If sufficient actuarial data are available (as 
        determined by the Corporation), the Corporation may insure, or provide 
        reinsurance for insurers of, producers of agricultural commodities grown 
        in the United States under 1 or more plans of insurance determined by 
        the Corporation to be adapted to the agricultural commodity concerned. 
        To qualify for coverage under a plan of insurance, the losses of the 
        insured commodity must be due to drought, flood, or other natural 
        disaster (as determined by the Secretary).
            ``(2) Period.--Except in the cases of tobacco and potatoes, 
        insurance shall not extend beyond the period during which the insured 
        commodity is in the field. As used in the preceding sentence, in the 
        case of an aquacultural species, the term `field' means the environment 
        in which the commodity is produced.
            ``(3) Exclusions.--Insurance provided under this subsection shall 
        not cover losses due to--
                    ``(A) the neglect or malfeasance of the producer;
                    ``(B) the failure of the producer to reseed to the same crop 
                in such areas and under such circumstances as it is customary to 
                reseed; or
                    ``(C) the failure of the producer to follow good farming 
                practices (as determined by the Secretary).
            ``(4) Expansion to other areas or single producers.--
                    ``(A) Area expansion.--The Corporation may offer plans of 
                insurance or reinsurance for production of agricultural 
                commodities in the Commonwealth of Puerto Rico, the Virgin 
                Islands, Guam, American Samoa, the Commonwealth of the Northern 
                Mariana Islands, the Republic of the Marshall Islands, the 
                Federated States of Micronesia, and the Republic of Palau in the 
                same manner as provided in this section for production of 
                agricultural commodities in the United States.
                    ``(B) Producer expansion.--In an area in the United States 
                or specified in subparagraph (A) where crop insurance is not 
                available for a particular agricultural commodity, the 
                Corporation may offer to enter into a written agreement with an 
                individual producer operating in the area for insurance coverage 
                under this title if the producer has actuarially sound data 
                relating to the production by the producer of the commodity and 
                the data is acceptable to the Corporation.
            ``(5) Dissemination of crop insurance information.--The Corporation 
        shall make available to producers through local offices of the 
        Department--
                    ``(A) current and complete information on all aspects of 
                Federal crop insurance; and
                    ``(B) a listing of insurance agents and companies offering 
                to sell crop insurance in the area of the producers.
            ``(6) Addition of new and specialty crops.--
                    ``(A) Data collection.--Not later than 180 days after the 
                date of enactment of this paragraph, the Secretary shall issue 
                guidelines for publication in the Federal Register for data 
                collection to assist the Corporation in formulating crop 
                insurance policies for new and specialty crops.
                    ``(B) Addition of new crops.--Not later than 1 year after 
                the date of enactment of this paragraph, and annually 
                thereafter, the Corporation shall report to Congress on the 
                progress and expected timetable for expanding crop insurance 
                coverage under this title to new and specialty crops.
                    ``(C) Addition of direct sale perishable crops.--Not later 
                than 1 year after the date of enactment of this paragraph, the 
                Corporation shall report to Congress on the feasibility of 
                offering a crop insurance program designed to meet the needs of 
                specialized producers of vegetables and other perishable crops 
                who market through direct marketing channels.
    ``(b) Catastrophic Risk Protection.--
            ``(1) In general.--The Corporation shall offer a catastrophic risk 
        protection plan to indemnify producers for crop loss due to loss of 
        yield or prevented planting, if provided by the Corporation, when the 
        producer is unable, because of drought, flood, or other natural disaster 
        (as determined by the Secretary), to plant other crops for harvest on 
        the acreage for the crop year.
            ``(2) Amount of coverage.--
                    ``(A) In general.--Subject to subparagraph (B)--
                            ``(i) in the case of each of the 1995 through 1998 
                        crop years, catastrophic risk protection shall offer a 
                        producer coverage for a 50 percent loss in yield, on an 
                        individual yield or area yield basis, indemnified at 60 
                        percent of the expected market price, or a comparable 
                        coverage (as determined by the Corporation); and
                            ``(ii) in the case of each of the 1999 and 
                        subsequent crop years, catastrophic risk protection 
                        shall offer a producer coverage for a 50 percent loss in 
                        yield, on an individual yield or area yield basis, 
                        indemnified at 55 percent of the expected market price, 
                        or a comparable coverage (as determined by the 
                        Corporation).
                    ``(B) Reduction in actual payment.--The amount paid to a 
                producer on a claim under catastrophic risk protection may 
                reflect a reduction that is proportional to the out-of-pocket 
                expenses that are not incurred by the producer as a result of 
                not planting, growing, or harvesting the crop for which the 
                claim is made, as determined by the Corporation.
            ``(3) Yield and loss basis.--A producer shall have the option of 
        basing the catastrophic coverage of the producer on an individual yield 
        and loss basis or on an area yield and loss basis, if both options are 
        offered by the Corporation.
            ``(4) Sale of catastrophic risk coverage.--
                    ``(A) In general.--Catastrophic risk coverage may be offered 
                by--
                            ``(i) approved insurance providers, if available in 
                        an area; and
                            ``(ii) at the option of the Secretary that is based 
                        on considerations of need, local offices of the 
                        Department.
                    ``(B) Need.--For purposes of considering need under 
                subparagraph (A)(ii), the Secretary may take into account the 
                most efficient and cost-effective use of resources, the 
                availability of personnel, fairness to local producers, the 
                needs and convenience of local producers, and the availability 
                of private insurance carriers.
            ``(5) Administrative fee.--
                    ``(A) Fee required.--Producers shall pay an administrative 
                fee for catastrophic risk protection. The administrative fee for 
                each producer shall be $50 per crop per county, but not to 
                exceed $200 per producer per county up to a maximum of $600 per 
                producer for all counties in which a producer has insured crops. 
                The administrative fee shall be paid by the producer at the time 
                the producer applies for catastrophic risk protection.
                    ``(B) Use of fees.--
                            ``(i) Fees up to $100.--
                                    ``(I) Fees collected by usda offices.--Not 
                                more than $100 of the administrative fees paid 
                                by a producer for catastrophic risk coverage 
                                that are collected by an office of the 
                                Department shall be credited to the 
                                appropriations account providing funds for the 
                                payment of operating and administrative expenses 
                                incurred for the delivery of catastrophic risk 
                                protection under this section. The fees shall be 
                                collected in accordance with appropriation Acts 
                                and shall be available until expended without 
                                fiscal year limitation for the payment of the 
                                expenses.
                                    ``(II) Fees collected by approved insurance 
                                providers.--Not more than $100 of the 
                                administrative fees paid by a producer for 
                                catastrophic risk coverage that are collected by 
                                an approved insurance provider shall be retained 
                                by the provider as payment for operating and 
                                administrative expenses incurred for the 
                                delivery of catastrophic risk protection.
                            ``(ii) Fees in excess of $100.--Notwithstanding the 
                        authority granted to the Secretary under the Federal 
                        Crop Insurance Corporation account provisions of the 
                        Agricultural, Rural Development, Food and Drug 
                        Administration, and Related Agencies Appropriations Act, 
                        1995, all fees collected under this subsection in excess 
                        of $100 per producer per county shall be deposited in 
                        the crop insurance fund established under section 
                        516(c), to be available for the programs and activities 
                        of the Corporation.
                    ``(C) Waiver of fee.--The Corporation shall waive the 
                administrative fee for limited resource farmers, as defined by 
                the Corporation.
            ``(6) Participation requirement.--A producer may obtain catastrophic 
        risk coverage for a crop of the producer on land in the county only if 
        the producer obtains the coverage for the crop on all insurable land of 
        the producer in the county.
            ``(7) Eligibility for department programs.--
                    ``(A) In general.--To be eligible for any price support or 
                production adjustment program, the conservation reserve program, 
                or any benefit described in section 371 of the Consolidated Farm 
                and Rural Development Act, the producer must obtain at least the 
                catastrophic level of insurance for each crop of economic 
                significance grown on each farm in the county in which the 
                producer has an interest, if insurance is available in the 
                county for the crop.
                    ``(B) Definition of crop of economic significance.--As used 
                in this paragraph, the term `crop of economic significance' 
                means a crop that has contributed, or is expected to contribute, 
                10 percent or more of the total expected value of all crops 
                grown by the producer.
            ``(8) Limitation due to risk.--The Corporation may limit 
        catastrophic risk coverage in any county or area, or on any farm, on the 
        basis of the insurance risk concerned.
            ``(9) Transitional coverage for 1995 crops.--Effective only for a 
        1995 crop planted or for which insurance attached prior to January 1, 
        1995, the Corporation shall allow producers of the crops until not later 
        than the end of the 180-day period beginning on the date of enactment of 
        the Federal Crop Insurance Reform Act of 1994 to obtain catastrophic 
        risk protection for the crop. On enactment of such Act, a producer who 
        made timely purchases of a crop insurance policy before the date of 
        enactment of such Act, under the provisions of this title then in 
        effect, shall be eligible for the same benefits to which a producer 
        would be entitled under comparable additional coverage under subsection 
        (c).
            ``(10) Simplification.--
                    ``(A) Catastrophic risk protection plans.--In developing and 
                carrying out the policies and procedures for a catastrophic risk 
                protection plan under this title, the Corporation shall, to the 
                maximum extent practicable, minimize the paperwork required and 
                the complexity and costs of procedures governing applications 
                for, processing, and servicing of the plan for all parties 
                involved.
                    ``(B) Other plans.--To the extent that the policies and 
                procedures developed under subparagraph (A) may be applied to 
                other plans of insurance offered under this title without 
                jeopardizing the actuarial soundness or integrity of the crop 
                insurance program, the Corporation shall apply the policies and 
                procedures to the other plans of insurance within a reasonable 
                period of time (as determined by the Corporation) after the 
                effective date of this paragraph.
    ``(c) General Coverage Levels.--
            ``(1) Additional coverage generally.--
                    ``(A) In general.--The Corporation shall offer to producers 
                of agricultural commodities grown in the United States plans of 
                crop insurance that provide additional coverage.
                    ``(B) Purchase.--To be eligible for additional coverage, a 
                producer must apply to an approved insurance provider for 
                purchase of additional coverage if the coverage is available 
                from an approved insurance provider. If additional coverage is 
                unavailable privately, the Corporation may offer additional 
                coverage plans of insurance directly to producers.
            ``(2) Transfer of relevant information.--If a producer has already 
        applied for catastrophic risk protection at the local office of the 
        Department and elects to purchase additional coverage, the relevant 
        information for the crop of the producer shall be transferred to the 
        approved insurance provider servicing the additional coverage crop 
        policy.
            ``(3) Yield and loss basis.--A producer shall have the option of 
        purchasing additional coverage based on an individual yield and loss 
        basis or on an area yield and loss basis, if both options are offered by 
        the Corporation.
            ``(4) Level of coverage.--The level of coverage shall be dollar 
        denominated and may be purchased at any level not to exceed 85 percent 
        of the individual yield or 95 percent of the area yield (as determined 
        by the Corporation). Not later than the beginning of the 1996 crop year, 
        the Corporation shall provide producers with information on catastrophic 
        risk and additional coverage in terms of dollar coverage (within the 
        allowable limits of coverage provided in this paragraph).
            ``(5) Price level.--The Corporation shall establish a price level 
        for each commodity on which insurance is offered that--
                    ``(A) shall not be less than the projected market price for 
                the commodity (as determined by the Corporation); or
                    ``(B) at the discretion of the Corporation, may be based on 
                the actual market price at the time of harvest (as determined by 
                the Corporation).
            ``(6) Price elections.--
                    ``(A) In general.--Subject to subparagraph (B), insurance 
                coverage shall be made available to a producer on the basis of 
                any price election that equals or is less than the price 
                election established by the Corporation. The coverage shall be 
                quoted in terms of dollars per acre.
                    ``(B) Minimum price elections.--The Corporation may 
                establish minimum price elections below which levels of 
                insurance shall not be offered.
                    ``(C) Wheat classes and malting barley.--The Corporation 
                shall, as the Corporation determines practicable, offer 
                producers different price elections for classes of wheat and 
                malting barley (including contract prices in the case of malting 
                barley), in addition to the standard price election, that 
                reflect different market prices, as determined by the 
                Corporation. The Corporation shall, as the Corporation 
                determines practicable, offer additional coverage for each class 
                determined under this subparagraph and charge a premium for each 
                class that is actuarially sound.
            ``(7) Fire and hail coverage.--For levels of additional coverage 
        equal to 65 percent or more of the recorded or appraised average yield 
        indemnified at 100 percent of the expected market price, or an 
        equivalent coverage, a producer may elect to delete from the additional 
        coverage any coverage against damage caused by fire and hail if the 
        producer obtains an equivalent or greater dollar amount of coverage for 
        damage caused by fire and hail from an approved insurance provider. On 
        written notice of the election to the company issuing the policy 
        providing additional coverage and submission of evidence of substitute 
        coverage on the commodity insured, the premium of the producer shall be 
        reduced by an amount determined by the Corporation to be actuarially 
        appropriate, taking into account the actuarial value of the remaining 
        coverage provided by the Corporation. In no event shall the producer be 
        given credit for an amount of premium determined to be greater than the 
        actuarial value of the protection against losses caused by fire and hail 
        that is included in the additional coverage for the crop.
            ``(8) State premium subsidies.--The Corporation may enter into an 
        agreement with any State or agency of a State under which the State or 
        agency may pay to the approved insurance provider an additional premium 
        subsidy to further reduce the portion of the premium paid by producers 
        in the State.
            ``(9) Limitations on additional coverage.--The Board may limit the 
        availability of additional coverage under this subsection in any county 
        or area, or on any farm, on the basis of the insurance risk involved. 
        The Board shall not offer additional coverage equal to less than 50 
        percent of the recorded or appraised average yield indemnified at 100 
        percent of the expected market price, or an equivalent coverage.
            ``(10) Administrative fee.--
                    ``(A) Fee required.--Except as otherwise provided in this 
                paragraph, if a producer elects to purchase additional coverage 
                for a crop at a level that is less than 65 percent of the 
                recorded or appraised average yield indemnified at 100 percent 
                of the expected market price, or an equivalent coverage, the 
                producer shall pay an administrative fee for the additional 
                coverage. Subsection (b)(5) shall apply in determining the 
                amount and use of the administrative fee or in determining 
                whether to waive the administrative fee.
                    ``(B) Exception.--If a producer elects to purchase 
                additional coverage for a crop equal to 65 percent or more of 
                the recorded or appraised average yield indemnified at 100 
                percent of the expected market price, or an equivalent coverage, 
                the producer shall not be subject to the administrative fee 
                required by this paragraph or subsection (b)(5). If the producer 
                has already paid the administrative fee for a lower level of 
                coverage for the crop, the administrative fee shall be refunded 
                to the producer unless the refund would reduce to less than $200 
                the total amount of the administrative fees paid by the producer 
                for 2 or more crops in the same county for which a lower level 
                of coverage is obtained.
                    ``(C) Additional fee.--If a producer elects to purchase 
                additional coverage for a crop equal to or exceeding 65 percent 
                of the recorded or appraised average yield and 100 percent of 
                the expected market price or an equivalent coverage, the 
                producer shall pay an administrative fee of $10 for the 
                coverage. If a producer has already paid an administrative fee 
                for lesser coverage for the crop, the fee for lesser coverage 
                shall be refunded to the producer unless the producer has paid 
                the maximum fee for lesser coverage and refund of the fee will 
                not reduce the amount to be paid below the maximum amount.
                    ``(D) Deposit of fees.--Notwithstanding the authority 
                granted to the Secretary under the Federal Crop Insurance 
                Corporation account provisions of the Agricultural, Rural 
                Development, Food and Drug Administration, and Related Agencies 
                Appropriations Act, 1995, administrative fees collected under 
                subparagraph (B) in excess of $100 per producer per county and 
                under subparagraph (C) shall be deposited in the insurance fund 
                established under section 516(c) to be available for the 
                programs and activities of the Corporation.
    ``(d) Premiums.--
            ``(1) Premiums required.--The Corporation shall fix adequate 
        premiums for all the plans of insurance of the Corporation at such rates 
        as the Board determines are actuarially sufficient to attain an expected 
        loss ratio of not greater than 1.1 through September 30, 1998, and not 
        greater than 1.075 after October 1, 1998.
            ``(2) Premium amounts.--The premium amounts for catastrophic risk 
        protection under subsection (b) and additional coverage under subsection 
        (c) shall be fixed as follows:
                    ``(A) In the case of catastrophic risk protection, the 
                amount of the premium shall be sufficient to cover anticipated 
                losses and a reasonable reserve.
                    ``(B) In the case of additional coverage below 65 percent of 
                the recorded or appraised average yield indemnified at 100 
                percent of the expected market price, or an equivalent coverage, 
                but greater than 50 percent of the recorded or appraised average 
                yield indemnified at 100 percent of the expected market price, 
                or an equivalent coverage, the amount of the premium shall--
                            ``(i) be sufficient to cover anticipated losses and 
                        a reasonable reserve; and
                            ``(ii) include an amount for operating and 
                        administrative expenses, as determined by the 
                        Corporation.
                    ``(C) In the case of additional coverage equal to or greater 
                than 65 percent of the recorded or appraised average yield 
                indemnified at 100 percent of the expected market price, or an 
                equivalent coverage, the amount of the premium shall--
                            ``(i) be sufficient to cover anticipated losses and 
                        a reasonable reserve; and
                            ``(ii) include an amount for operating and 
                        administrative 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.
    ``(e) Payment of Portion of Premium by Corporation.--
            ``(1) In general.--For the purpose of encouraging the broadest 
        possible participation of producers in the catastrophic risk protection 
        provided under subsection (b) and the additional coverage provided under 
        subsection (c), the Corporation shall pay a part of the premium in the 
        amounts provided in accordance with this subsection.
            ``(2) Amount of payment.--The amount of the premium to be paid by 
        the Corporation shall be as follows:
                    ``(A) In the case of catastrophic risk protection, the 
                amount shall be equivalent to the premium established for 
                catastrophic risk protection under subsection (d)(2)(A).
                    ``(B) In the case of coverage below 65 percent of the 
                recorded or appraised average yield indemnified at 100 percent 
                of the expected market price, or an equivalent coverage, but 
                greater than 50 percent of the recorded or appraised average 
                yield indemnified at 100 percent of the expected market price, 
                or an equivalent coverage, the amount shall be equivalent to the 
                amount of premium established for catastrophic risk protection 
                coverage and the amount of operating and administrative expenses 
                established under subsection (d)(2)(B).
                    ``(C) In the case of coverage equal to or greater than 65 
                percent of the recorded or appraised average yield indemnified 
                at 100 percent of the expected market price, or an equivalent 
                coverage, on an individual or area basis, the amount shall be 
                equivalent to an amount equal to the premium established for 50 
                percent loss in yield indemnified at 75 percent of the expected 
                market price and the amount of operating and administrative 
                expenses established under subsection (d)(2)(C).
            ``(3) Premium reduction.--If an approved insurance provider 
        determines that the provider may provide insurance more efficiently than 
        the expense reimbursement amount established by the Corporation, the 
        approved insurance provider may reduce, subject to the approval of the 
        Corporation, the premium charged the insured by an amount corresponding 
        to the efficiency. The approved insurance provider shall apply to the 
        Corporation for authority to reduce the premium before making such a 
        reduction, and the reduction shall be subject to the rules, limitations, 
        and procedures established by the Corporation.
            ``(4) Individual and area crop insurance coverage.--The Corporation 
        shall allow approved insurance providers to offer a plan of insurance to 
        producers that combines both individual yield coverage and area yield 
        coverage at a premium rate determined by the provider under the 
        following conditions:
                    ``(A) The individual yield coverage shall be equal to or 
                greater than catastrophic risk protection as described in 
                subsection (b).
                    ``(B) The combined policy shall include area yield coverage 
                that is offered by the Corporation or similar area coverage, as 
                determined by the Corporation.
                    ``(C) The Corporation shall provide reinsurance on the area 
                yield portion of the combined policy at the request of the 
                provider, except that the provider shall agree to pay to the 
                producer any portion of the area yield and loss indemnity 
                payment received from the Corporation or a commercial reinsurer 
                that exceeds the individual indemnity payment made by the 
                provider to the producer.
                    ``(D) The Corporation shall pay a part of the premium 
                equivalent to--
                            ``(i) the amount authorized under paragraph (2) 
                        (except provisions regarding operating and 
                        administrative expenses); and
                            ``(ii) the amount of operating and administrative 
                        expenses authorized by the Corporation for the area 
                        yield coverage portion of the combined policy.
                    ``(E) The provider shall provide all underwriting services 
                for the combined policy, including the determination of 
                individual yield coverage premium rates, the terms and 
                conditions of the policy, and the acceptance and classification 
                of applicants into risk categories, subject to subparagraph (F).
                    ``(F) The Corporation shall approve the combined policy 
                unless the Corporation determines that the policy is not 
                actuarially sound or that the interests of producers are not 
                adequately protected.
    ``(f) Eligibility.--
            ``(1) In general.--To participate in catastrophic risk protection 
        coverage under this section, a producer shall submit an application at 
        the local office of the Department or to an approved insurance provider.
            ``(2) Sales closing date.--For coverage under this title, each 
        producer shall purchase crop insurance on or before the sales closing 
        date for the crop by providing the required information and executing 
        the required documents. Subject to the goal of ensuring actuarial 
        soundness for the crop insurance program, the sales closing date shall 
        be established by the Corporation to maximize convenience to producers 
        in obtaining benefits under price and production adjustment programs of 
        the Department. Beginning with the 1995 crop year, the Corporation shall 
        establish, for an insurance policy for each insurable crop that is 
        planted in the spring, a sales closing date that is 30 days earlier than 
        the corresponding sales closing date that was established for the 1994 
        crop year.
            ``(3) Records and reporting.--To obtain catastrophic risk protection 
        under subsection (b) or additional coverage under subsection (c), a 
        producer shall--
                    ``(A) provide, to the extent required by the Corporation, 
                records acceptable to the Corporation of historical acreage and 
                production of the crops for which the insurance is sought or 
                accept a yield determined by the Corporation; and
                    ``(B) report acreage planted and prevented from planting by 
                the designated acreage reporting date for the crop and location 
                as established by the Corporation.
    ``(g) Yield Determinations.--
            ``(1) In general.--Subject to paragraph (2), the Corporation shall 
        establish crop insurance underwriting rules that ensure that yield 
        coverage, as specified in this subsection, is provided to eligible 
        producers obtaining catastrophic risk protection under subsection (b) or 
        additional coverage under subsection (c).
            ``(2) Yield coverage plans.--
                    ``(A) Actual production history.--Subject to subparagraph 
                (B), the yield for a crop shall be based on the actual 
                production history for the crop, if the crop was produced on the 
                farm without penalty during each of the 4 crop years immediately 
                preceding the crop year for which actual production history is 
                being established, building up to a production data base for 
                each of the 10 consecutive crop years preceding the crop year 
                for which actual production history is being established.
                    ``(B) Assigned yield.--If the producer does not provide 
                satisfactory evidence of the yield of a commodity under 
                subparagraph (A), the producer shall be assigned a yield that is 
                not less than 65 percent of the transitional yield of the 
                producer (adjusted to reflect actual production reflected in the 
                records acceptable to the Corporation for continuous years), as 
                specified in regulations issued by the Corporation based on 
                production history requirements.
                    ``(C) Area yield.--The Corporation may offer a crop 
                insurance plan based on an area yield that allows an insured 
                producer to qualify for an indemnity if a loss has occurred in 
                an area (as specified by the Corporation) in which the farm of 
                the producer is located. Under an area yield plan, an insured 
                producer shall be allowed to select the level of area production 
                at which an indemnity will be paid consistent with such terms 
                and conditions as are established by the Corporation.
                    ``(D) Commodity-by-commodity basis.--A producer may choose 
                between individual yield or area yield coverage or combined 
                coverage (as provided in subsection (e)(4)), if available, on a 
                commodity-by-commodity basis.
            ``(3) Transitional yields for producers of feed or forage.--
                    ``(A) In general.--If a producer does not provide 
                satisfactory evidence of a yield under paragraph (2)(A), the 
                producer shall be assigned a yield that is at least 80 percent 
                of the transitional yield established by the Corporation 
                (adjusted to reflect the actual production history of the 
                producer) if the Secretary determines that--
                            ``(i) the producer grows feed or forage primarily 
                        for on-farm use in a livestock, dairy, or poultry 
                        operation; and
                            ``(ii) over 50 percent of the net farm income of the 
                        producer is derived from the operation.
                    ``(B) Yield calculation.--The Corporation shall--
                            ``(i) for the first year of participation of a 
                        producer, provide the assigned yield under this 
                        paragraph to the producer of feed or forage; and
                            ``(ii) for the second year of participation of the 
                        producer, apply the actual production history or 
                        assigned yield requirement, as provided in this 
                        subsection.
                    ``(C) Termination of authority.--The authority provided by 
                this paragraph shall terminate on the date that is 3 years after 
                the effective date of this paragraph.
    ``(h) Submission of Policies and Materials to Board.--
            ``(1) In general.--In addition to any standard forms or policies 
        that the Board may require be made available to producers under 
        subsection (c), a person may prepare for submission or propose to the 
        Board--
                    ``(A) other crop insurance policies and provisions of 
                policies; and
                    ``(B) rates of premiums for multiple peril crop insurance 
                pertaining to wheat, soybeans, field corn, and any other crops 
                determined by the Secretary.
            ``(2) Submission of policies.--A policy or other material submitted 
        to the Board under this subsection may be prepared without regard to the 
        limitations contained in this title, including the requirements 
        concerning the levels of coverage and rates and the requirement that a 
        price level for each commodity insured must equal the expected market 
        price for the commodity as established by the Board. In the case of such 
        a policy, the payment by the Corporation of a portion of the premium of 
        the policy may not exceed the amount that would otherwise be authorized 
        under subsection (e).
            ``(3) Review and approval by the board.--A policy or other material 
        submitted to the Board under this subsection shall be reviewed by the 
        Board and, if the Board finds that the interests of producers are 
        adequately protected and that any premiums charged to the producers are 
        actuarially appropriate, shall be approved by the Board for reinsurance 
        and for sale to producers as an additional choice at actuarially 
        appropriate rates and under appropriate terms and conditions. The 
        Corporation may enter into more than 1 reinsurance agreement with the 
        approved insurance provider simultaneously to facilitate the offering of 
        the new policies.
            ``(4) Guidelines for submission and review.--The Corporation shall 
        issue regulations to establish guidelines for the submission, and Board 
        review, of policies or other material submitted to the Board under this 
        subsection. At a minimum, the guidelines shall ensure the following:
                    ``(A) A proposal submitted to the Board under this 
                subsection shall be considered as confidential commercial or 
                financial information for purposes of section 552(b)(4) of title 
                5, United States Code, until approved by the Board. A proposal 
                disapproved by the Board shall remain confidential commercial or 
                financial information.
                    ``(B) The Board shall provide an applicant with the 
                opportunity to present the proposal to the Board in person if 
                the applicant so desires.
                    ``(C) The Board shall provide an applicant with notification 
                of intent to disapprove a proposal not later than 30 days prior 
                to making the disapproval. An applicant that receives the 
                notification may modify the application of the applicant. Any 
                modification shall be considered an original application for 
                purposes of this paragraph.
                    ``(D) Specific guidelines shall prescribe the timing of 
                submission of proposals under this subsection and timely 
                consideration by the Board so that any approved proposal may be 
                made available to all persons reinsured by the Corporation in a 
                manner permitting the persons to participate, if the persons so 
                desire, in offering such a proposal in the first crop year in 
                which the proposal is approved by the Board for reinsurance, 
                premium subsidy, or other support offered by this title.
            ``(5) Required publication.--Any policy, provision of a policy, or 
        rate approved under this subsection shall be published as a notice in 
        the Federal Register and made available to all persons contracting with 
        or reinsured by the Corporation under the terms and conditions of the 
        contract between the Corporation and the person originally submitting 
        the policy or other material.
            ``(6) Pilot cost of production risk protection plan.--
                    ``(A) In general.--The Corporation shall offer, to the 
                extent practicable, a cost of production risk protection plan of 
                insurance that indemnifies producers (including new producers) 
                for insurable losses as provided in this paragraph.
                    ``(B) Pilot basis.--The cost of production risk protection 
                plan shall--
                            ``(i) be established as a pilot project for each of 
                        the 1996 and 1997 crop years; and
                            ``(ii) be carried out in a number of counties that 
                        is determined by the Corporation to be adequate to 
                        provide a comprehensive evaluation of the feasibility, 
                        effectiveness, and demand among producers for the plan.
                    ``(C) Insurable loss.--An insurable loss shall be incurred 
                by a producer if the gross income of the producer (as determined 
                by the Corporation) is less than an amount determined by the 
                Corporation, as a result of a reduction in yield or price 
                resulting from an insured cause.
                    ``(D) Definition of new producer.--As used in this 
                paragraph, the term `new producer' means a person that has not 
                been actively engaged in farming for a share of the production 
                of the insured crop for more than 2 crop years, as determined by 
                the Secretary.
            ``(7) Additional prevented planting policy coverage.--
                    ``(A) In general.--Beginning with the 1995 crop year, the 
                Corporation shall offer to producers additional prevented 
                planting coverage that insures producers against losses in 
                accordance with this paragraph.
                    ``(B) Approved insurance providers.--Additional prevented 
                planting coverage shall be offered by the Corporation through 
                approved insurance providers.
                    ``(C) Timing of loss.--A crop loss shall be covered by the 
                additional prevented planting coverage if--
                            ``(i) crop insurance policies were obtained for--
                                    ``(I) the crop year the loss was 
                                experienced; and
                                    ``(II) the crop year immediately preceding 
                                the year of the prevented planting loss; and
                            ``(ii) the cause of the loss occurred--
                                    ``(I) after the sales closing date for the 
                                crop in the crop year immediately preceding the 
                                loss; and
                                    ``(II) before the sales closing date for the 
                                crop in the year in which the loss is 
                                experienced.
            ``(8) Pilot program of assigned yields for new producers.--
                    ``(A) Program required.--For each of the 1995 and 1996 crop 
                years, the Corporation shall carry out a pilot program to assign 
                to eligible new producers higher assigned yields than would 
                otherwise be assigned to the producers under subsection (g). The 
                Corporation shall include in the pilot program 30 counties that 
                are determined by the Corporation to be adequate to provide a 
                comprehensive evaluation of the feasibility, effectiveness, and 
                demand among new producers for increased assigned yields.
                    ``(B) Increased assigned yields.--In the case of an eligible 
                new producer participating in the pilot program, the Corporation 
                shall assign to the new producer a yield that is equal to not 
                less than 110 percent of the transitional yield otherwise 
                established by the Corporation.
                    ``(C) Eligible new producer.--The Secretary shall establish 
                a definition of new producer for purposes of determining 
                eligibility to participate in the pilot program.
    ``(i) Adoption of Rates and Coverages.--The Corporation shall adopt, as soon 
as practicable, rates and coverages that will improve the actuarial soundness of 
the insurance operations of the Corporation for those crops that are determined 
to be insured at rates that are not actuarially sound, except that no rate may 
be increased by an amount of more than 20 percent over the comparable rate of 
the preceding crop year.
    ``(j) Claims for Losses.--
            ``(1) In general.--Under rules prescribed by the Corporation, the 
        Corporation may provide for adjustment and payment of claims for losses. 
        The rules prescribed by the Corporation shall establish standards to 
        ensure that all claims for losses are adjusted, to the extent 
        practicable, in a uniform and timely manner.
            ``(2) Denial of claims.--
                    ``(A) In general.--Subject to subparagraph (B), if a claim 
                for indemnity is denied by the Corporation or an approved 
                provider, an action on the claim may be brought against the 
                Corporation or Secretary only in the United States district 
                court for the district in which the insured farm is located.
                    ``(B) Statute of limitations.--A suit on the claim may be 
                brought not later than 1 year after the date on which final 
                notice of denial of the claim is provided to the claimant.
            ``(3) Indemnification.--The Corporation shall provide approved 
        insurance providers with indemnification, including costs and reasonable 
        attorney fees incurred by the approved insurance provider, due to errors 
        or omissions on the part of the Corporation.
    ``(k) Reinsurance.--
            ``(1) In general.--Notwithstanding any other provision of this 
        title, the Corporation shall, to the maximum extent practicable, provide 
        reinsurance to insurers approved by the Corporation that insure 
        producers of any agricultural commodity under 1 or more plans acceptable 
        to the Corporation.
            ``(2) Terms and conditions.--The reinsurance shall be provided on 
        such terms and conditions as the Board may determine to be consistent 
        with subsections (b) and (c) and sound reinsurance principles.
            ``(3) Share of risk.--The reinsurance agreements of the Corporation 
        with the reinsured companies shall require the reinsured companies to 
        bear a sufficient share of any potential loss under the agreement so as 
        to ensure that the reinsured company will sell and service policies of 
        insurance in a sound and prudent manner, taking into consideration the 
        financial condition of the reinsured companies and the availability of 
        private reinsurance.
            ``(4) Rate.--The rate established by the Board to reimburse approved 
        insurance providers and agents for the administrative and operating 
        costs of the providers and agents shall not exceed--
                    ``(A) for the 1997 reinsurance year, 29 percent of the 
                premium used to define loss ratio;
                    ``(B) for the 1998 reinsurance year, 28 percent of the 
                premium used to define loss ratio; and
                    ``(C) for the 1999 reinsurance year, 27.5 percent of the 
                premium used to define loss ratio.
            ``(5) Cost and regulatory reduction.--Consistent with section 118 of 
        the Federal Crop Insurance Reform Act of 1994, and consistent with 
        maintenance of program integrity, prevention of fraud and abuse, the 
        need for program expansion, and improvement of quality of service to 
        customers, the Board shall alter program procedures and administrative 
        requirements in order to reduce the administrative and operating costs 
        of approved insurance providers and agents in an amount that corresponds 
        to any reduction in the reimbursement rate required under paragraph (4) 
        during the 5-year period beginning on the date of enactment of this 
        paragraph.
            ``(6) Agency discretion.--The determination of whether the 
        Corporation is achieving, or has achieved, corresponding administrative 
        cost savings shall not be subject to administrative review, and is 
        wholly committed to agency discretion within the meaning of section 
        701(a)(2) of title 5, United States Code.
            ``(7) Plan.--The Corporation shall submit to Congress a plan 
        outlining the measures that will be used to achieve the reduction 
        required under paragraph (5). If the Corporation can identify additional 
        cost reduction measures, the Corporation shall describe the measures in 
        the plan.
    ``(l) Optional Coverages.--The Corporation may offer specific risk 
protection programs, including protection against prevented planting, wildlife 
depredation, tree damage and disease, and insect infestation, under such terms 
and conditions as the Board may determine, except that no program may be 
undertaken if insurance for the specific risk involved is generally available 
from private companies.
    ``(m) Research.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        Corporation may conduct research, surveys, pilot programs, and 
        investigations relating to crop insurance and agriculture-related risks 
        and losses including insurance on losses involving reduced forage on 
        rangeland caused by drought and by insect infestation, livestock 
        poisoning and disease, destruction of bees due to the use of pesticides, 
        and other unique special risks related to fruits, nuts, vegetables, 
        aquacultural species, forest industry needs (including appreciation), 
        and other agricultural products as determined by the Board.
            ``(2) Exception.--No action may be undertaken with respect to a risk 
        under paragraph (1) if insurance protection against the risk is 
        generally available from private companies.
            ``(3) Evaluation.--After the completion of any pilot program under 
        this subsection, the Corporation shall evaluate the pilot program and 
        submit to the Committee on Agriculture of the House of Representatives 
        and the Committee on Agriculture, Nutrition, and Forestry of the Senate, 
        a report of the operations of the pilot program, including the 
        evaluation by the Corporation of the pilot program and the 
        recommendations of the Corporation with respect to implementing the 
        program on a national basis.''.

SEC. 107. CROP INSURANCE YIELD COVERAGE.

    Section 508A (7 U.S.C. 1508a) is repealed.

SEC. 108. PREEMPTION.

    Section 511 (7 U.S.C. 1511) is amended by adding at the end the following 
sentence: ``A contract of insurance of the Corporation, and a contract of 
insurance reinsured by the Corporation, shall be exempt from taxation imposed by 
any State, municipality, or local taxing authority.''.

SEC. 109. ADVISORY COMMITTEE.

    The Act is amended by inserting after section 514 (7 U.S.C. 1514) the 
following new section:

``SEC. 515. ADVISORY COMMITTEE FOR FEDERAL CROP INSURANCE.

    ``(a) Establishment.--The Secretary may establish within the Department an 
advisory committee to be known as the `Advisory Committee for Federal Crop 
Insurance'.
    ``(b) Primary Responsibility.--The primary responsibility of the Advisory 
Committee shall be to advise the Secretary on the implementation of this title 
and on other issues related to crop insurance, as determined by the Manager of 
the Corporation.
    ``(c) Membership.--The Advisory Committee shall be composed of the Manager 
of the Corporation, the Secretary (or a designee of the Secretary), and not 
fewer than 12 members representing organizations and agencies involved in the 
provision of crop insurance under this title. Not fewer than 3 of the members of 
the Advisory Committee shall be representatives of the specialty crops industry. 
The organizations or agencies represented by members on the Advisory Committee 
may include insurance companies, insurance agents, farm producer organizations, 
experts on agronomic practices, and banking and lending institutions.
    ``(d) Administrative Provisions.--
            ``(1) Terms.--Members of the Advisory Committee (other than the 
        Manager of the Corporation and the Secretary) shall be appointed by the 
        Secretary for a term of up to 2 years from nominations made by the 
        organizations and agencies specified in subsection (c). The terms of the 
        members (other than the Manager of the Corporation and the Secretary) 
        shall be staggered.
            ``(2) Chairperson.--The Advisory Committee shall be chaired by the 
        Manager of the Corporation.
            ``(3) Meetings.--The Advisory Committee shall meet at least 
        annually. The meetings of the Advisory Committee shall be publicly 
        announced in advance and shall be open to the public. Appropriate 
        records of the activities of the Advisory Committee shall be kept and 
        made available to the public on request.
    ``(e) Reports.--Not later than June 30 of each year, the Advisory Committee 
shall submit to the Secretary a report specifying the conclusions and 
recommendations of the Advisory Committee regarding--
            ``(1) the progress toward implementation of this title;
            ``(2) the actuarial soundness of the Federal crop insurance program;
            ``(3) the rate of producer participation in both catastrophic risk 
        protection under section 508(b) and additional coverage under section 
        508(c); and
            ``(4) the progress toward improved crop insurance coverage for new 
        and specialty crops.
    ``(f) Termination of Authority.--The authority provided by this section 
shall terminate on September 30, 1998.''.

SEC. 110. FUNDING.

    Section 516 (7 U.S.C. 1516) is amended to read as follows:

``SEC. 516. FUNDING.

    ``(a) Authorization of Appropriations.--
            ``(1) Discretionary expenses.--There are authorized to be 
        appropriated for each of fiscal years 1995 through 2001 such sums as are 
        necessary to cover--
                    ``(A) the salaries and expenses of the Corporation; and
                    ``(B) the administrative and operating expenses of the 
                Corporation for the sales commissions of agents.
            ``(2) Mandatory expenses.--There are authorized to be appropriated 
        such sums as are necessary to cover--
                    ``(A) in the case of each of the 1995 through 1997 
                reinsurance years, the administrative and operating expenses of 
                the Corporation for the sales commissions of agents, consistent 
                with subsection (b)(1);
                    ``(B) premium subsidies, including the administrative and 
                operating expenses of an approved insurance provider for the 
                delivery of policies with additional coverage; and
                    ``(C) payments for noninsured assistance losses under 
                section 519.
    ``(b) Payment of Expenses.--
            ``(1) Administrative and operating expenses.--
                    ``(A) In general.--Except as provided in subparagraph (B), 
                in the case of each of the 1995 through 1997 reinsurance years, 
                the Corporation is authorized to pay from the insurance fund 
                established under subsection (c), the administrative and 
                operating expenses of an approved insurance provider, including 
                expenses covered by subsection (a)(1)(B).
                    ``(B) Sales commissions for 1997 reinsurance year.--In the 
                case of the 1997 reinsurance year, the amount of the payments 
                from the insurance fund established under subsection (c) for the 
                expenses of the Corporation for the sales commissions of agents 
                may not exceed 8.5 percent of the total amount of premiums paid 
                for additional coverage for the 1997 reinsurance year.
            ``(2) Other expenses.--The Corporation is authorized to pay from the 
        insurance fund established under subsection (c)--
                    ``(A) all other expenses of the Corporation (other than 
                expenses covered by subsection (a)(1)), including all premium 
                subsidies, noninsured assistance benefits, and indemnities;
                    ``(B) subject to paragraph (1)(B), in the case of each of 
                the 1995 through 1997 reinsurance years, all administrative and 
                expense reimbursements due under a reinsurance agreement with an 
                approved insurance provider; and
                    ``(C) to the extent necessary, expenses incurred by the 
                Corporation to carry out research and development.
    ``(c) Insurance Fund.--
            ``(1) In general.--There is established an insurance fund, for the 
        deposit of premium income and amounts made available under subsection 
        (a)(2), to be available without fiscal year limitation.
            ``(2) Commodity credit corporation funds.--If at any time the 
        amounts in the insurance fund are insufficient to enable the Corporation 
        to carry out subsection (b), to the extent the funds of the Commodity 
        Credit Corporation are available--
                    ``(A) the Corporation may request the Secretary to use the 
                funds of the Commodity Credit Corporation to carry out 
                subsection (b); and
                    ``(B) the Secretary may use the funds of the Commodity 
                Credit Corporation to carry out subsection (b).''.

SEC. 111. NONINSURED CROP DISASTER ASSISTANCE.

    Section 519 (7 U.S.C. 1519) is amended to read as follows:

``SEC. 519. NONINSURED CROP DISASTER ASSISTANCE PROGRAM.

    ``(a) Establishment of Program.--
            ``(1) Establishment.--In the case of an eligible crop described in 
        paragraph (2), the Corporation shall establish a noninsured crop 
        disaster assistance program to provide coverage equivalent to the 
        catastrophic risk protection otherwise available under section 508(b).
            ``(2) Eligible crops.--
                    ``(A) In general.--As used in this section, the term 
                `eligible crop' means each commercial crop or other agricultural 
                commodity (except livestock)--
                            ``(i) for which catastrophic risk protection under 
                        section 508(b) is not available; and
                            ``(ii) that is produced for food or fiber.
                    ``(B) Crops specifically included.--The term `eligible crop' 
                shall include floricultural, ornamental nursery, and Christmas 
                tree crops, turfgrass sod, and industrial crops.
            ``(3) Cause of loss.--To qualify for assistance under this section, 
        the losses of the noninsured commodity shall be due to drought, flood, 
        or other natural disaster, as determined by the Secretary.
    ``(b) Application for Noninsured Crop Disaster Assistance.--
            ``(1) Timely application.--To be eligible for assistance under this 
        section, a producer shall submit an application for noninsured crop 
        disaster assistance at a local office of the Department. The application 
        shall be in such form, contain such information, and be submitted at 
        such time as the Corporation may require.
            ``(2) Records.--A producer shall annually provide records, as 
        required by the Corporation, of previous crop acreage, acreage yields, 
        and production, or the producer shall accept a yield under subsection 
        (e)(3) determined by the Corporation.
            ``(3) Acreage reports.--A producer shall provide reports on acreage 
        planted or prevented from being planted, as required by the Corporation, 
        by the designated acreage reporting date for the crop and location as 
        established by the Corporation.
    ``(c) Loss Requirements.--
            ``(1) Required area loss.--A producer of an eligible crop shall not 
        receive noninsured crop disaster assistance unless the average yield for 
        that crop, or an equivalent measure in the event yield data are not 
        available, in an area falls below 65 percent of the expected area yield, 
        as established by the Corporation.
            ``(2) Prevented planting.--Subject to paragraph (1), the Corporation 
        shall make a prevented planting noninsured crop disaster assistance 
        payment if the producer is prevented from planting more than 35 percent 
        of the acreage intended for the eligible crop because of drought, flood, 
        or other natural disaster, as determined by the Secretary.
            ``(3) Reduced yields.--Subject to paragraph (1), the Corporation 
        shall make a reduced yield noninsured crop disaster assistance payment 
        to a producer if the total quantity of the eligible crop that the 
        producer is able to harvest on any farm is, because of drought, flood, 
        or other natural disaster as determined by the Secretary, less than 50 
        percent of the expected individual yield for the crop, as determined by 
        the Corporation, factored for the interest of the producer for the crop.
    ``(d) Payment.--The Corporation shall make available to a producer eligible 
for noninsured assistance under this section a payment computed by multiplying--
            ``(1) the quantity that is less than 50 percent of the established 
        yield for the crop; by
            ``(2)(A) in the case of each of the 1995 through 1998 crop years, 60 
        percent of the average market price for the crop (or any comparable 
        coverage determined by the Corporation); or
            ``(B) in the case of each of the 1999 and subsequent crop years, 55 
        percent of the average market price for the crop (or any comparable 
        coverage determined by the Corporation); by
            ``(3) a payment rate for the type of crop (as determined by the 
        Corporation) that--
                    ``(A) in the case of a crop that is produced with a 
                significant and variable harvesting expense, reflects the 
                decreasing cost incurred in the production cycle for the crop 
                that is--
                            ``(i) harvested;
                            ``(ii) planted but not harvested; and
                            ``(iii) prevented from being planted because of 
                        drought, flood, or other natural disaster (as determined 
                        by the Secretary); and
                    ``(B) in the case of a crop that is not produced with a 
                significant and variable harvesting expense, is determined by 
                the Corporation.
    ``(e) Yield Determinations.--
            ``(1) Establishment.--The Corporation shall establish farm yields 
        for purposes of providing noninsured crop disaster assistance under this 
        section.
            ``(2) Actual production history.--The Corporation shall determine 
        yield coverage using the actual production history of the producer over 
        a period of not less than the 4 previous consecutive crop years and not 
        more than 10 consecutive crop years. Subject to paragraph (3), the yield 
        for the year in which noninsured crop disaster assistance is sought 
        shall be equal to the average of the actual production history of the 
        producer during the period considered.
            ``(3) Assignment of yield.--If a producer does not submit adequate 
        documentation of production history to determine a crop yield under 
        paragraph (2), the Corporation shall assign to the producer a yield 
        equal to not less than 65 percent of the transitional yield of the 
        producer (adjusted to reflect actual production reflected in the records 
        acceptable to the Corporation for continuous years), as specified in 
        regulations issued by the Corporation based on production history 
        requirements.
            ``(4) Prohibition on assigned yields in certain counties.--
                    ``(A) In general.--
                            ``(i) Documentation.--If sufficient data are 
                        available to demonstrate that the acreage of a crop in a 
                        county for the crop year has increased by more than 100 
                        percent over any year in the preceding 7 crop years or, 
                        if data are not available, if the acreage of the crop in 
                        the county has increased significantly from the previous 
                        crop years, a producer must provide such detailed 
                        documentation of production costs, acres planted, and 
                        yield for the crop year for which benefits are being 
                        claimed as is required by the Corporation. If the 
                        Corporation determines that the documentation provided 
                        is not sufficient, the Corporation may require 
                        documenting proof that the crop, had the crop been 
                        harvested, could have been marketed at a reasonable 
                        price.
                            ``(ii) Prohibition.--Except as provided in 
                        subparagraph (B), a producer who produces a crop on a 
                        farm located in a county described in clause (i) may not 
                        obtain an assigned yield.
                    ``(B) Exception.--A crop or a producer shall not be subject 
                to this subsection if--
                            ``(i) the planted acreage of the producer for the 
                        crop has been inspected by a third party acceptable to 
                        the Secretary; or
                            ``(ii)(I) the County Executive Director and the 
                        State Executive Director recommend an exemption from the 
                        requirement to the Deputy Administrator for State and 
                        County Operations of the Agricultural Stabilization and 
                        Conservation Service; and
                            ``(II) the Deputy Administrator approves the 
                        recommendation.
            ``(5) Limitation on receipt of subsequent assigned yield.--A 
        producer who receives an assigned yield for the current year of a 
        natural disaster because required production records were not submitted 
        to the local office of the Department shall not be eligible for an 
        assigned yield for the year of the next natural disaster unless the 
        required production records of the previous 1 or more years (as 
        applicable) are provided to the local office.
            ``(6) Yield variations due to different farming practices.--The 
        Corporation shall ensure that noninsured crop disaster assistance 
        accurately reflects significant yield variations due to different 
        farming practices, such as between irrigated and nonirrigated acreage.
    ``(f) Contract Payments.--A producer who has received a guaranteed payment 
for production, as opposed to delivery, of a crop pursuant to a contract shall 
have the production of the producer adjusted upward by the amount of the 
production equal to the amount of the contract payment received.
    ``(g) Payment of Losses.--Payments for noninsured crop disaster assistance 
losses under this section shall be made from the insurance fund established 
under section 516. The losses shall not be included in calculating the premiums 
charged to producers for insurance under section 508.
    ``(h) Exclusions.--Noninsured crop disaster assistance under this section 
shall not cover losses due to--
            ``(A) the neglect or malfeasance of the producer;
            ``(B) the failure of the producer to reseed to the same crop in 
        those areas and under such circumstances where it is customary to 
        reseed; or
            ``(C) the failure of the producer to follow good farming practices, 
        as determined by the Corporation.''.

SEC. 112. PAYMENT AND INCOME LIMITATIONS.

    Section 519 (7 U.S.C. 1519) (as amended by section 111) is further amended 
by adding at the end the following new subsection:
    ``(h) Payment and Income Limitations.--
            ``(1) Definitions.--As used in this subsection:
                    ``(A) Person.--The term `person' has the meaning provided 
                the term in regulations issued by the Secretary. The regulations 
                shall conform, to the extent practicable, to the regulations 
                defining the term `person' issued under section 1001 of the Food 
                Security Act of 1985 (7 U.S.C. 1308).
                    ``(B) Qualifying gross revenues.--The term `qualifying gross 
                revenues' means--
                            ``(i) if a majority of the gross revenue of the 
                        person is received from farming, ranching, and forestry 
                        operations, the gross revenue from the farming, 
                        ranching, and forestry operations of the person; and
                            ``(ii) if less than a majority of the gross revenue 
                        of the person is received from farming, ranching, and 
                        forestry operations, the gross revenue of the person 
                        from all sources.
            ``(2) Payment limitation.--The total amount of payments that a 
        person shall be entitled to receive annually under this title may not 
        exceed $100,000.
            ``(3) Limitation on multiple benefits for same loss.--If a producer 
        who is eligible to receive benefits under catastrophic risk protection 
        under section 508(b) or noninsured crop disaster assistance under this 
        section is also eligible to receive assistance for the same loss under 
        any other program administered by the Secretary, the producer shall be 
        required to elect whether to receive benefits under this title or under 
        the other program, but not both. A producer who purchases additional 
        coverage under section 508(c) may also receive assistance for the same 
        loss under other programs administered by the Secretary, except that the 
        amount received for the loss under the additional coverage together with 
        the amount received under the other programs may not exceed the amount 
        of the actual loss of the producer.
            ``(4) Income limitation.--A person who has qualifying gross revenues 
        in excess of the amount specified in section 2266(a) of the Food, 
        Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 1421 note) 
        (as in effect on November 28, 1990) during the taxable year (as 
        determined by the Secretary) shall not be eligible to receive any 
        noninsured assistance payment under this section.
            ``(5) Regulations.--The Secretary shall issue regulations 
        prescribing such rules as the Secretary determines necessary to ensure a 
        fair and equitable application of section 1001 of the Food Security Act 
        of 1985 (7 U.S.C. 1308), the general payment limitation regulations of 
        the Secretary, and the limitations established under this subsection.''.

SEC. 113. PRODUCER ELIGIBILITY.

    Section 520 (7 U.S.C. 1520) is amended to read as follows:

``SEC. 520. PRODUCER ELIGIBILITY.

    ``Except as otherwise provided in this title, a producer shall not be denied 
insurance under this title if--
            ``(1) for purposes of catastrophic risk protection coverage, the 
        producer is a `person' (as defined by the Secretary); and
            ``(2) for purposes of any other plan of insurance, the producer is 
        18 years of age and has a bona fide insurable interest in a crop as an 
        owner-operator, landlord, tenant, or sharecropper.''.

SEC. 114. INELIGIBILITY FOR CATASTROPHIC RISK AND NONINSURED ASSISTANCE 
              PAYMENTS.

    The Act (7 U.S.C. 1501 et seq.) is amended by adding at the end the 
following new section:

``SEC. 521. INELIGIBILITY FOR CATASTROPHIC RISK AND NONINSURED ASSISTANCE 
              PAYMENTS.

    ``If the Secretary determines that a person has knowingly adopted a material 
scheme or device to obtain catastrophic risk, additional coverage, or noninsured 
assistance benefits under this title to which the person is not entitled, has 
evaded this title, or has acted with the purposes of evading this title, the 
person shall be ineligible to receive all benefits applicable to the crop year 
for which the scheme or device was adopted. The authority provided by this 
section shall be in addition to, and shall not supplant, the authority provided 
by section 506(n).''.

SEC. 115. ELIMINATION OF GENDER REFERENCES.

    (a) Management of Corporation.--Section 505 (7 U.S.C. 1505) is amended--
            (1) in subsection (a), by striking the third sentence and inserting 
        ``The Board shall be appointed by, and hold office at the pleasure of, 
        the Secretary. The Secretary shall not be a member of the Board.''; and
            (2) in subsection (d)--
                    (A) by striking ``upon him''; and
                    (B) by striking ``He shall be appointed by,'' and inserting 
                ``The manager shall be appointed by,''.
    (b) Personnel.--Section 507 (7 U.S.C. 1507) is amended--
            (1) in subsection (a), by striking ``as he may determine: Provided, 
        That'' and inserting ``as the Secretary may determine appropriate. 
        However,''; and
            (2) in subsection (d), by striking ``as he may request'' and 
        inserting ``that the Secretary requests''.
    (c) Indemnities Exempt From Levy.--Section 509 (7 U.S.C. 1509) is amended by 
striking ``or his estate'' and inserting ``or the estate of the insured''.

SEC. 116. PREVENTED PLANTING.

    (a) In General.--Effective for the 1994 crop year, a producer described in 
subsection (b) shall receive compensation under the prevented planting coverage 
policy provision described in subsection (b)(1) by--
            (1) obtaining from the Secretary of Agriculture the applicable 
        amount that is payable under the conserving use program described in 
        subsection (b)(4); and
            (2) obtaining from the Federal Crop Insurance Corporation the amount 
        that is equal to the difference between--
                    (A) the amount that is payable under the conserving use 
                program; and
                    (B) the amount that is payable under the prevented planting 
                coverage policy.
    (b) Eligible Producers.--Subsection (a) shall apply to a producer who--
            (1) purchased a prevented planting policy for the 1994 crop year 
        from the Federal Crop Insurance Corporation prior to the spring sales 
        closing date for the 1994 crop year;
            (2) is unable to plant a crop due to major, widespread flooding in 
        the Midwest, or excessive ground moisture, that occurred prior to the 
        spring sales closing date for the 1994 crop year;
            (3) had a reasonable expectation of planting a crop on the prevented 
        planting acreage for the 1994 crop year; and
            (4) participates in a conserving use program established for the 
        1994 crop of wheat, feed grains, upland cotton, or rice established 
        under section 107B(c)(1)(E), 105B(c)(1)(E), 103B(c)(1)(D), or 
        101B(c)(1)(D), respectively, of the Agricultural Act of 1949 (7 U.S.C. 
        1445b-3a(c)(1)(E), 1444f(c)(1)(E), 1444-2(c)(1)(D), or 1441-2(c)(1)(D)).
    (c) Oilseed Prevented Planting Payments.--
            (1) In general.--Effective for the 1994 crop year, a producer of a 
        crop of oilseeds (as defined in section 205(a) of the Agricultural Act 
        of 1949 (7 U.S.C. 1446f(a))) shall receive a prevented planting payment 
        for the crop if the requirements of paragraphs (1), (2), and (3) of 
        subsection (b) are satisfied.
            (2) Source of payment.--The total amount of payments required under 
        this subsection shall be made by the Federal Crop Insurance Corporation.
    (d) Payment.--A payment under this section may not be made before October 1, 
1994.

SEC. 117. REPORT ON IMPROVING DISSEMINATION OF CROP INSURANCE INFORMATION.

    Not later than 180 days after the date of enactment of this Act and at the 
end of each of the 2 1-year periods thereafter, the Federal Crop Insurance 
Corporation shall submit a report to Congress containing a plan to implement a 
sound program for producer education regarding the crop insurance program and 
for the dissemination of crop insurance information to producers, as required by 
section 508(a)(5) of the Federal Crop Insurance Act (as amended by section 106).

SEC. 118. CROP INSURANCE PROVIDER EVALUATION.

    (a) In General.--The Comptroller General of the United States and the 
Federal Crop Insurance Corporation (referred to in this section as the 
``Corporation'') shall jointly evaluate the financial arrangement between the 
Corporation and approved insurance providers to determine the quality, costs, 
and efficiencies of providing the benefits of multiple peril crop insurance to 
producers of agricultural commodities covered under the Federal Crop Insurance 
Act (7 U.S.C. 1501 et seq.).
    (b) Collection of Information and Proposals.--The Corporation shall require 
private insurance providers and agents to supply, and the private insurance 
providers and agents shall supply, records and information necessary to make the 
determinations and evaluations required under this section. The Corporation 
shall solicit from the approved insurance providers and agents proposals for 
modifying or altering the requirements, regulations, procedures, and processes 
related to implementing the Federal Crop Insurance Act to reduce the operating 
and administrative costs of the providers and agents.
    (c) Initial Report.--Not later than 180 days after receipt of information 
and cost-reduction proposals under subsection (b), the Corporation shall 
evaluate the information and proposals obtained and report the results of the 
evaluation to the Committee on Agriculture of the House of Representatives and 
the Committee on Agriculture, Nutrition, and Forestry of the Senate.
    (d) Final Report.--Not later than 2 years after the date of enactment of 
this Act, the Comptroller General and the Corporation shall submit a final 
report that provides the evaluation required under subsection (a) to the 
Committee on Agriculture of the House of Representatives and the Committee on 
Agriculture, Nutrition, and Forestry of the Senate. In making the evaluation, 
the Comptroller General and the Corporation shall--
            (1) consider the changes made by the Corporation in response to 
        increased program participation resulting from the enactment of this 
        Act;
            (2) include an evaluation and opinion of the accuracy and 
        reasonableness of--
                    (A) the average actual costs for approved insurance 
                providers to deliver multiple peril crop insurance;
                    (B) the cost per policy of complying with the requirements, 
                regulations, procedures, and processes of the Federal Crop 
                Insurance Act;
                    (C) the cost differences for various provider firm sizes and 
                any business delivered by the Federal Government;
                    (D) the adequacy of the standard reimbursement for potential 
                new providers; and
                    (E) the identification of any new costs related to the 
                enactment of this Act not previously identified in the 
                information reported by the providers;
            (3) compare delivery costs of multiple peril crop insurance to other 
        insurance coverages that the provider may sell and determine the extent, 
        if any, to which any funds provided to carry out the Federal Crop 
        Insurance Act are being used to fund any other business enterprise 
        operated by the provider;
            (4)(A) assess alternative methods for reimbursing providers for 
        reasonable and necessary expenses associated with delivery of multiple 
        peril crop insurance;
            (B) recommend changes under this paragraph that reasonably 
        demonstrate the need to achieve the greatest operating efficiencies on 
        the part of the provider and the Corporation has been recognized; and
            (C) identify areas for improved operating efficiencies, if any, in 
        the requirements made by the Corporation for compliance and program 
        integrity;
            (5) assess the potential for alternative forms of reinsurance 
        arrangements for providers of different firm sizes, taking into 
        consideration--
                    (A) the need to achieve a reasonable return on the capital 
                of the provider compared to other lines of insurance;
                    (B) the relative risk borne by the provider for the 
                different lines of insurance;
                    (C) the availability and price of commercial reinsurance; 
                and
                    (D) any additional costs that may be incurred by the Federal 
                Government in carrying out the Federal Crop Insurance Act; and
            (6) include an analysis of the effect of the current or proposed 
        reinsurance arrangements on providers having different business levels.
    (e) Information.--
            (1) Privacy.--In conducting the evaluation required by this section, 
        the Comptroller General and the Corporation shall maintain the privacy 
        of proprietary information.
            (2) Subpoenas.--The Comptroller General shall have the power to 
        subpoena information relevant to the evaluation required by this section 
        from any private insurance provider. The Comptroller General shall allow 
        the Corporation access to the information subpoenaed taking into 
        consideration the necessity of preserving the privacy of proprietary 
        information.

SEC. 119. CONFORMING AMENDMENTS.

    (a) Price Support Programs.--
            (1) In general.--Title IV of the Agricultural Act of 1949 (7 U.S.C. 
        1421 et seq.) is amended by adding at the end the following new section:

``SEC. 427. CROP INSURANCE REQUIREMENT.

    ``As a condition of receiving any benefit (including payments) under title I 
or II for each of the 1995 and subsequent crops of tobacco, rice, extra long 
staple cotton, upland cotton, feed grains, wheat, peanuts, oilseeds, and sugar, 
a producer must obtain at least catastrophic risk protection insurance coverage 
under section 508 of the Federal Crop Insurance Act (7 U.S.C. 1508) for the crop 
and crop year for which the benefit is sought, if the coverage is offered by the 
Corporation.''.
            (2) Rice.--Section 101B(c) of such Act (7 U.S.C. 1441-2(c)) is 
        amended--
                    (A) in paragraph (1), by striking subparagraph (F); and
                    (B) by striking paragraph (2) and inserting the following 
                new paragraph:
            ``(2) Crop insurance requirement.--A producer shall obtain 
        catastrophic risk protection insurance coverage in accordance with 
        section 427.''.
            (3) Upland cotton.--Section 103B(c) of such Act (7 U.S.C. 1444-2(c)) 
        is amended--
                    (A) in paragraph (1), by striking subparagraph (F); and
                    (B) by striking paragraph (2) and inserting the following 
                new paragraph:
            ``(2) Crop insurance requirement.--A producer shall obtain 
        catastrophic risk protection insurance coverage in accordance with 
        section 427.''.
            (4) Feed grains.--Section 105B(c) of such Act (7 U.S.C. 1444f(c)) is 
        amended--
                    (A) in paragraph (1), by striking subparagraph (G); and
                    (B) by striking paragraph (2) and inserting the following 
                new paragraph:
            ``(2) Crop insurance requirement.--A producer shall obtain 
        catastrophic risk protection insurance coverage in accordance with 
        section 427.''.
            (5) Wheat.--Section 107B(c) of such Act (7 U.S.C. 1445b-3a(c)) is 
        amended--
                    (A) in paragraph (1), by striking subparagraph (G); and
                    (B) by striking paragraph (2) and inserting the following 
                new paragraph:
            ``(2) Crop insurance requirement.--A producer shall obtain 
        catastrophic risk protection insurance coverage in accordance with 
        section 427.''.
            (6) Disaster payments.--Section 208 of such Act (7 U.S.C. 1446i) is 
        repealed.
    (b) Farmers Home Administration Programs.--The Consolidated Farm and Rural 
Development Act (7 U.S.C. 1921 et seq.) is amended by adding at the end the 
following new section:

``SEC. 371. CROP INSURANCE REQUIREMENT.

    ``(a) In General.--As a condition of obtaining any benefit (including a 
direct loan, loan guarantee, or payment) described in subsection (b), a borrower 
must obtain at least catastrophic risk protection insurance coverage under 
section 508 of the Federal Crop Insurance Act (7 U.S.C. 1508) for the crop and 
crop year for which the benefit is sought, if the coverage is offered by the 
Corporation.
    ``(b) Applicable Benefits.--Subsection (a) shall apply to--
            ``(1) a farm ownership loan (FO) under section 303;
            ``(2) an operating loan (OL) under section 312; and
            ``(3) an emergency loan (EM) under section 321.''.
    (c) Disaster Assistance.--Subtitle B of title XXII of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 1421 note) is amended by striking 
chapter 3.
    (d) Emergency Appropriations.--
            (1) In general.--Effective January 1, 1995, section 251(b)(2)(D)(i) 
        of the Balanced Budget and Emergency Deficit Control Act of 1985 (2 
        U.S.C. 901(b)(2)(D)(i)) is amended by adding at the end the following 
        new sentence: ``This subparagraph shall not apply to appropriations to 
        cover agricultural crop disaster assistance.''.
            (2) Emergency legislation.--Effective January 1, 1995, section 
        252(e) of such Act (2 U.S.C. 902(e)) is amended by adding at the end the 
        following new sentence: ``This subsection shall not apply to direct 
        spending provisions to cover agricultural crop disaster assistance.''.
    (e) False Statements.--Section 1014 of title 18, United States Code, is 
amended by inserting ``or a company the Corporation reinsures'' after ``Federal 
Crop Insurance Corporation''.
    (f) Technical Amendments.--
            (1) The first sentence of section 506(d) (7 U.S.C. 1506(d)) is 
        amended by striking ``508(f)'' and inserting ``508(j)''.
            (2) The last sentence of section 507(c) (7 U.S.C. 1507(c)) is 
        amended by striking ``508(b)'' and inserting ``508(h)''.
            (3) Section 518 (7 U.S.C. 1518) is amended by striking ``(k)'' and 
        inserting ``(m)''.

SEC. 120. EFFECTIVE DATE.

    Except as otherwise provided in this title, this title and the amendments 
made by this title shall become effective on the date of enactment of this Act 
and shall apply to the provision of crop insurance under the Federal Crop 
Insurance Act (7 U.S.C. 1501 et seq.) beginning with the 1995 crop year. With 
respect to the 1994 crop year, the Federal Crop Insurance Act (as in effect on 
the day before the date of enactment of this Act) shall continue to apply.

               TITLE II--DEPARTMENT OF AGRICULTURE REORGANIZATION

SEC. 201. SHORT TITLE.

    (a) Short Title.--This title may be cited as the ``Department of Agriculture 
Reorganization Act of 1994''.

SEC. 202. PURPOSE.

    The purpose of this title is to provide the Secretary of Agriculture with 
the necessary authority to streamline and reorganize the Department of 
Agriculture to achieve greater efficiency, effectiveness, and economies in the 
organization and management of the programs and activities carried out by the 
Department.

SEC. 203. DEFINITIONS.

    Except where the context requires otherwise, for purposes of this title:
            (1) Department.--The term ``Department'' means the Department of 
        Agriculture.
            (2) National appeals division.--The term ``National Appeals 
        Division'' means the National Appeals Division of the Department 
        established under section 272.
            (3) Secretary.--The term ``Secretary'' means the Secretary of 
        Agriculture.
            (4) Function.--The term ``function'' means an administrative, 
        financial, or regulatory activity of an agency, office, officer, or 
        employee of the Department.

                 Subtitle A--General Reorganization Authorities

SEC. 211. TRANSFER OF DEPARTMENT FUNCTIONS TO SECRETARY OF AGRICULTURE.

    (a) Transfer of Functions.--Except as provided in subsection (b), there are 
transferred to the Secretary of Agriculture all functions of all agencies, 
offices, officers, and employees of the Department that are not already vested 
in the Secretary on the date of the enactment of this Act.
    (b) Exceptions.--Subsection (a) shall not apply to the following functions:
            (1) Functions vested by subchapter II of chapter 5 of title 5, 
        United States Code, in administrative law judges employed by the 
        Department.
            (2) Functions vested by the Inspector General Act of 1978 (5 U.S.C. 
        App.) in the Inspector General of the Department.
            (3) Functions vested by chapter 9 of title 31, United States Code, 
        in the Chief Financial Officer of the Department.
            (4) Functions vested in the corporations of the Department or the 
        boards of directors and officers of such corporations.
            (5) Functions vested in the Alternative Agricultural Research and 
        Commercialization Board by the Alternative Agricultural Research and 
        Commercialization Act of 1990 (7 U.S.C. 5901 et seq.).

SEC. 212. AUTHORITY OF SECRETARY TO DELEGATE TRANSFERRED FUNCTIONS.

    (a) Delegation of Authority.--
            (1) Delegation authorized.--Subject to paragraph (2), the Secretary 
        may delegate to any agency, office, officer, or employee of the 
        Department the authority to perform any function transferred to the 
        Secretary under section 211(a) or any other function vested in the 
        Secretary as of the date of the enactment of this Act. The authority 
        provided in the preceding sentence includes the authority to establish, 
        consolidate, alter, or discontinue any agency, office, or other 
        administrative unit of the Department.
            (2) Condition on authority.--The delegation authority provided by 
        paragraph (1) shall be subject to--
                    (A) sections 232, 251(d), 273, and 304 and subsections (a) 
                and (b)(1) of section 261;
                    (B) sections 502 and 503 of the Agricultural Trade Act of 
                1978 (7 U.S.C. 5692 and 5693); and
                    (C) section 8(b)(5) of the Soil Conservation and Domestic 
                Allotment Act (16 U.S.C. 590h(b)(5)).
    (b) Cost-Benefit Analysis Required for Name Change.--
            (1) Analysis required.--Except as provided in paragraph (2), the 
        Secretary shall conduct a cost-benefit analysis before changing the name 
        of any agency, office, division, or other unit of the Department to 
        ensure that the benefits to be derived from changing the name of the 
        agency, office, division, or other unit outweigh the expense of 
        executing the name change.
            (2) Exception.--Paragraph (1) shall not apply with respect to any 
        name change required or authorized by this title.
    (c) Public Comment on Proposed Reorganization.--To the extent that the 
implementation of the authority provided to the Secretary by this title to 
reorganize the Department involves the creation of new agencies or offices 
within the Department or the delegation of major functions or major groups of 
functions to any agency or office of the Department (or the officers or 
employees of such agency or office), the Secretary shall, to the extent 
considered practicable by the Secretary--
            (1) give appropriate advance public notice of the proposed 
        reorganization action or delegation; and
            (2) afford appropriate opportunity for interested parties to comment 
        on the proposed reorganization action or delegation.
    (d) Interagency Transfer of Records, Property, Personnel, and Funds.--
            (1) Related transfers.--Subject to paragraph (2), as part of the 
        transfer or delegation of a function of the Department made or 
        authorized by this title, the Secretary may transfer within the 
        Department--
                    (A) any of the records, property, or personnel affected by 
                the transfer or delegation of the function; and
                    (B) unexpended balances (available or to be made available 
                for use in connection with the transferred or delegated 
                function) of appropriations, allocations, or other funds of the 
                Department.
            (2) Applicable law relating to funds transfer.--Section 1531 of 
        title 31, United States Code, shall apply to any transfer of funds under 
        paragraph (1).
    (e) Exhaustion of Administrative Appeals.--Notwithstanding any other 
provision of law, a person shall exhaust all administrative appeal procedures 
established by the Secretary or required by law before the person may bring an 
action in a court of competent jurisdiction against--
            (1) the Secretary;
            (2) the Department; or
            (3) an agency, office, officer, or employee of the Department.

SEC. 213. REDUCTIONS IN NUMBER OF DEPARTMENT PERSONNEL.

    (a) Definitions.--For purposes of this section:
            (1) Headquarters offices.--The term ``headquarters offices'', with 
        respect to agencies, offices, or other administrative units of the 
        Department, means the offices, functions, and employee positions that 
        are located or performed--
                    (A) in Washington, District of Columbia; or
                    (B) in such other locations as are identified by the 
                Secretary for purposes of this section.
            (2) Field structure.--The term ``field structure'' means the 
        offices, functions, and employee positions of all agencies, offices, or 
        other administrative units of the Department, other than the 
        headquarters offices, except that the term does not include State, 
        county, or area committees established under section 8(b)(5) of the Soil 
        Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)(5)). The term 
        includes the physical and geographic locations of such agencies, 
        offices, or other administrative units.
    (b) Number of Reductions Required.--The Secretary shall achieve Federal 
employee reductions of at least 7,500 staff years within the Department by the 
end of fiscal year 1999. Reductions in the number of full-time equivalent 
positions within the Department achieved under section 5 of the Federal 
Workforce Restructuring Act of 1994 (Public Law 103-226; 108 Stat. 115; 5 U.S.C. 
3101 note) shall be counted toward the employee reductions required under this 
section.
    (c) Emphasis on Headquarters Offices Reductions.--In achieving the employee 
reductions required by subsection (b), the Secretary shall pursue a goal so that 
the percentage of the total number of employee staff years reduced in 
headquarters offices is at least twice the percentage of the total number of 
employee staff years reduced in the field structure.
    (d) Schedule.--The personnel reductions in headquarters offices and in the 
field structure should be accomplished concurrently in a manner determined by 
the Secretary.

SEC. 214. CONSOLIDATION OF HEADQUARTERS OFFICES.

    Subject to the availability of appropriated funds for this purpose, the 
Secretary shall develop and carry out a plan to consolidate offices located in 
Washington, District of Columbia, of agencies, offices, and other administrative 
units of the Department.

SEC. 215. COMBINATION OF FIELD OFFICES.

    (a) Combination of Offices Required.--Where practicable and to the extent 
consistent with efficient, effective, and improved service, the Secretary shall 
combine field offices of agencies within the Department to reduce personnel and 
duplicative overhead expenses.
    (b) Joint Use of Resources and Offices Required.--When two or more agencies 
of the Department share a common field office, the Secretary shall require the 
agencies to jointly use office space, equipment, office supplies, administrative 
personnel, and clerical personnel associated with that field office.

SEC. 216. IMPROVEMENT OF INFORMATION SHARING.

    Whenever the Secretary procures or uses computer systems, as may be provided 
for in advance in appropriations Acts, the Secretary shall do so in a manner 
that enhances efficiency, productivity, and client services and is consistent 
with the goal of promoting computer information sharing among agencies of the 
Department.

SEC. 217. REPORTS BY THE SECRETARY.

    (a) In General.--Subject to subsection (b), notwithstanding any other 
provision of law, the Secretary may, but shall not be required to, prepare and 
submit any report solely to the Committee on Agriculture of the House of 
Representatives and the Committee on Agriculture, Nutrition, and Forestry of the 
Senate.
    (b) Limitation.--For each fiscal year, the Secretary may not prepare and 
submit more than 30 reports referred to in subsection (a).
    (c) Selection of Reports.--In consultation with the Committee on Agriculture 
of the House of Representatives and the Committee on Agriculture, Nutrition, and 
Forestry of the Senate, the Secretary shall determine which reports, if any, the 
Secretary will prepare and submit in accordance with subsection (b).

SEC. 218. ASSISTANT SECRETARIES OF AGRICULTURE.

    (a) Authorization.--The Secretary is authorized to establish in the 
Department the positions of--
            (1) Assistant Secretary of Agriculture for Congressional Relations;
            (2) Assistant Secretary of Agriculture for Administration; and
            (3) Assistant Secretary of Agriculture for Marketing and Regulatory 
        Programs.
    (b) Confirmation Required.--If the Secretary establishes any position of 
Assistant Secretary authorized under subsection (a), the Assistant Secretary 
shall be appointed by the President, by and with the advice and consent of the 
Senate.
    (c) Succession.--Any official who is serving as Assistant Secretary of 
Agriculture for Administration or Assistant Secretary of Agriculture for 
Congressional Relations on the date of the enactment of this Act and who was 
appointed as such Assistant Secretary by the President, by and with the advice 
and consent of the Senate, shall not be required to be reappointed under 
subsection (b) to the successor position authorized under subsection (a) if the 
Secretary establishes the position, and the official occupies the new position, 
within 180 days after the date of the enactment of this Act (or such later date 
set by the Secretary if litigation delays rapid succession).
    (d) Executive Schedule.--Section 5315 of title 5, United States Code, is 
amended by striking ``Assistant Secretaries of Agriculture (7).'' and inserting 
``Assistant Secretaries of Agriculture (3).''.
    (e) Repeal of Superseded Provisions Regarding Assistant Secretaries.--The 
following provisions of law are repealed:
            (1) Section 2 of Reorganization Plan No. 2 of 1953 (5 U.S.C. App; 7 
        U.S.C. 2201 note).
            (2) Section 2 of the Act entitled ``An Act to enlarge the powers and 
        duties of the Department of Agriculture and to create an Executive 
        Department to be known as the Department of Agriculture.'', approved 
        February 9, 1889 (7 U.S.C. 2212).
            (3) The first paragraph designated ``Office of the Secretary:'' 
        under the heading ``DEPARTMENT OF AGRICULTURE'' of the Act entitled ``An 
        Act making appropriations for the Department of Agriculture for the 
        fiscal year ending June thirtieth, nineteen hundred and seven.'', 
        approved June 30, 1906 (34 Stat. 670; 7 U.S.C. 2212).
            (4) Section 604(a) of the Rural Development Act of 1972 (7 U.S.C. 
        2212a).
            (5) Section 2 of Public Law 94-561 (7 U.S.C. 2212b).
            (6) Section 8(a) of Public Law 97-325 (7 U.S.C. 2212c).
            (7) Section 1413(d) of the National Agricultural Research, 
        Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3128(d)).

SEC. 219. PAY INCREASES PROHIBITED.

    The compensation of any officer or employee of the Department on the date of 
the enactment of this Act shall not be increased as a result of the enactment of 
this title.

               Subtitle B--Farm and Foreign Agricultural Services

SEC. 225. UNDER SECRETARY OF AGRICULTURE FOR FARM AND FOREIGN AGRICULTURAL 
              SERVICES.

    (a) Authorization.--The Secretary is authorized to establish in the 
Department the position of Under Secretary of Agriculture for Farm and Foreign 
Agricultural Services.
    (b) Confirmation Required.--If the Secretary establishes the position of 
Under Secretary of Agriculture for Farm and Foreign Agricultural Services 
authorized under subsection (a), the Under Secretary shall be appointed by the 
President, by and with the advice and consent of the Senate.
    (c) Functions of Under Secretary.--
            (1) Principal functions.--Upon establishment, the Secretary shall 
        delegate to the Under Secretary of Agriculture for Farm and Foreign 
        Agricultural Services those functions under the jurisdiction of the 
        Department that are related to farm and foreign agricultural services.
            (2) Additional functions.--The Under Secretary of Agriculture for 
        Farm and Foreign Agricultural Services shall perform such other 
        functions as may be required by law or prescribed by the Secretary.
    (d) Succession.--Any official who is serving as Under Secretary of 
Agriculture for International Affairs and Commodity Programs on the date of the 
enactment of this Act and who was appointed by the President, by and with the 
advice and consent of the Senate, shall not be required to be reappointed under 
subsection (b) to the successor position authorized under subsection (a) if the 
Secretary establishes the position, and the official occupies the new position, 
within 180 days after the date of the enactment of this Act (or such later date 
set by the Secretary if litigation delays rapid succession).
    (e) Conforming Amendments.--
            (1) Existing position.--Section 501 of the Agricultural Trade Act of 
        1978 (7 U.S.C. 5691), relating to the Under Secretary of Agriculture for 
        International Affairs and Commodity Programs, is repealed.
            (2) Executive schedule.--Section 5314 of title 5, United States 
        Code, is amended by striking ``Under Secretary of Agriculture for 
        International Affairs and Commodity Programs.'' and inserting ``Under 
        Secretary of Agriculture for Farm and Foreign Agricultural Services.''.

SEC. 226. CONSOLIDATED FARM SERVICE AGENCY.

    (a) Establishment.--The Secretary is authorized to establish and maintain in 
the Department a Consolidated Farm Service Agency.
    (b) Functions of Consolidated Farm Service Agency.--If the Secretary 
establishes the Consolidated Farm Service Agency under subsection (a), the 
Secretary is authorized to assign to the Agency jurisdiction over the following 
functions:
            (1) Agricultural price and income support programs, production 
        adjustment programs, and related programs.
            (2) General supervision of the Federal Crop Insurance Corporation.
            (3) Agricultural credit programs assigned before the date of the 
        enactment of this Act by law to the Farmers Home Administration 
        (including farm ownership and operating, emergency, and disaster loan 
        programs) and other lending programs for agricultural producers and 
        others engaged in the production of agricultural commodities.
            (4) Subchapter B of chapter 1 of subtitle D of title XII of the Food 
        Security Act of 1985 (16 U.S.C. 3831-3836) and the agricultural 
        conservation program under the Soil Conservation and Domestic Allotment 
        Act (16 U.S.C. 590g et seq.).
            (5) Such other functions as the Secretary considers appropriate, 
        except for those programs assigned by the Secretary to the Natural 
        Resources Conservation Service or another agency of the Department under 
        section 246(b).
    (c) Special Concurrence Requirements for Certain Functions.--In carrying out 
the programs specified in subsection (b)(4), the Secretary shall--
            (1) acting on the recommendations of the Consolidated Farm Service 
        Agency, with the concurrence of the Natural Resources Conservation 
        Service, issue regulations to carry out such programs;
            (2) ensure that the Consolidated Farm Service Agency, in 
        establishing policies, priorities, and guidelines for such programs, 
        does so with the concurrence of the Natural Resources Conservation 
        Service at national, State, and local levels;
            (3) ensure that, in reaching such concurrence at the local level, 
        the Natural Resources Conservation Service works in cooperation with 
        Soil and Water Conservation Districts or similar organizations 
        established under State law;
            (4) ensure that officials of county and area committees established 
        under section 8(b)(5) of the Soil Conservation and Domestic Allotment 
        Act (16 U.S.C. 590h(b)(5)) meet annually with officials of such 
        Districts or similar organizations to consider local conservation 
        priorities and guidelines; and
            (5) take steps to ensure that the concurrence process does not 
        interfere with the effective delivery of such programs.
    (d) Jurisdiction Over Conservation Program Appeals.--
            (1) In general.--Until such time as an adverse decision described in 
        this paragraph is referred to the National Appeals Division for 
        consideration, the Consolidated Farm Service Agency shall have initial 
        jurisdiction over any administrative appeal resulting from an adverse 
        decision made under title XII of the Food Security Act of 1985 (16 
        U.S.C. 3801 et seq.), including an adverse decision involving technical 
        determinations made by the Natural Resources Conservation Service.
            (2) Treatment of technical determination.--With respect to 
        administrative appeals involving a technical determination made by the 
        Natural Resources Conservation Service, the Consolidated Farm Service 
        Agency, by rule with the concurrence of the Natural Resources 
        Conservation Service, shall establish procedures for obtaining review by 
        the Natural Resources Conservation Service of the technical 
        determinations involved. Such rules shall ensure that technical criteria 
        established by the Natural Resources Conservation Service shall be used 
        by the Consolidated Farm Service Agency as the basis for any decisions 
        regarding technical determinations. If no review is requested, the 
        technical determination of the Natural Resources Conservation Service 
        shall be the technical basis for any decision rendered by a county or 
        area committee established under section 8(b)(5) of the Soil 
        Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)(5)). If the 
        committee requests a review by the Natural Resources Conservation 
        Service of a wetlands determination of the Service, the Consolidated 
        Farm Service Agency shall consult with other Federal agencies whenever 
        required by law or under a memorandum of agreement in existence on the 
        date of the enactment of this Act.
            (3) Reinstatement of program benefits.--Rules issued to carry out 
        this subsection shall provide for the prompt reinstatement of benefits 
        to a producer who is determined in an administrative appeal to meet the 
        requirements of title XII of the Food Security Act of 1985 applicable to 
        the producer.
    (e) Use of Federal and Non-Federal Employees.--
            (1) Use authorized.--In the implementation of programs and 
        activities assigned to the Consolidated Farm Service Agency, the 
        Secretary may use interchangeably in local offices of the Agency both 
        Federal employees of the Department and non-Federal employees of county 
        and area committees established under section 8(b)(5) of the Soil 
        Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)(5)).
            (2) Exception.--Notwithstanding paragraph (1), no personnel action 
        (as defined in section 2302(a)(2)(A) of title 5, United States Code) may 
        be taken with respect to a Federal employee unless such action is taken 
        by another Federal employee.
    (f) Collocation.--To the maximum extent practicable, the Secretary shall 
collocate county offices of the Consolidated Farm Service Agency with county 
offices of the Natural Resources Conservation Service in order to--
            (1) maximize savings from shared equipment, office space, and 
        administrative support;
            (2) simplify paperwork and regulatory requirements;
            (3) provide improved services to agricultural producers and 
        landowners affected by programs administered by the Agency and the 
        Service; and
            (4) achieve computer compatibility between the Agency and the 
        Service to maximize efficiency and savings.
    (g) Savings Provision.--For purposes of subsections (c) through (f) of this 
section:
            (1) A reference to the ``Consolidated Farm Service Agency'' includes 
        any other office, agency, or administrative unit of the Department 
        assigned the functions authorized for the Consolidated Farm Service 
        Agency under this section.
            (2) A reference to the ``Natural Resources Conservation Service'' 
        includes any other office, agency, or administrative unit of the 
        Department assigned the functions authorized for the Natural Resources 
        Conservation Service under section 246(b).
    (h) Conforming Amendment.--Section 331(a) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1981(a)) is amended by striking ``assets to the 
Farmers Home Administration'' and all that follows through the period at the end 
of the subsection and inserting ``assets to such officers or agencies of the 
Department of Agriculture as the Secretary considers appropriate.''.

SEC. 227. STATE, COUNTY, AND AREA COMMITTEES.

    (a) Committees Under the Soil Conservation and Domestic Allotment Act.--
Section 8(b) of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 
590h(b)) is amended--
            (1) by inserting ``(1)'' after ``(b)'';
            (2) by designating the second through eighth undesignated paragraphs 
        as paragraphs (2) through (8), respectively; and
            (3) by striking paragraph (5) (as so designated) and inserting the 
        following new paragraph:
    ``(5) State, county, and area committees.--
            ``(A) Appointment of state committees.--The Secretary shall appoint 
        in each State a State committee composed of not fewer than 3 nor more 
        than 5 members who are fairly representative of the farmers in the 
        State. The members of a State committee shall serve at the pleasure of 
        the Secretary for such term as the Secretary may establish.
            ``(B) Establishment of county, area, or local committees.--(i) In 
        each county or area in which activities are carried out under this 
        section, the Secretary shall establish a county or area committee.
            ``(ii) Any such committee shall consist of not fewer than 3 nor more 
        than 5 members who are fairly representative of the agricultural 
        producers in the county or area and who shall be elected by the 
        agricultural producers in such county or area under such procedures as 
        the Secretary may prescribe.
            ``(iii) The Secretary may designate local administrative areas 
        within the county or larger area covered by a committee established 
        under clause (i). Only agricultural producers within a local 
        administrative area who participate or cooperate in programs 
        administered within their area shall be eligible for nomination and 
        election to the local committee for that area, under such regulations as 
        the Secretary may prescribe.
            ``(iv) The Secretary shall solicit and accept nominations from 
        organizations representing the interests of socially disadvantaged 
        groups (as defined in section 355(e)(1) of the Consolidated Farm and 
        Rural Development Act (7 U.S.C. 2003(e)(1)).
            ``(v) Members of each county, area, or local committee shall serve 
        for terms not to exceed 3 years.
            ``(C) Termination or combination of committees.--The Secretary may 
        not terminate a county or area committee or combine or consolidate two 
        or more county or area committees unless--
                    ``(i) the Secretary first notifies the committee or 
                committees involved of the proposed action; and
                    ``(ii) the State committee of the State in which the 
                affected counties are located approves of such action in a vote 
                taken after the end of the 60-day period beginning on the date 
                the notification is received.
            ``(D) Use of committees.--The Secretary shall use the services of 
        such committees in carrying out programs under this section and the 
        agricultural credit programs under the Consolidated Farm and Rural 
        Development Act (7 U.S.C. 1921 et seq.) and in considering 
        administrative appeals as provided by section 226(d) of the Department 
        of Agriculture Reorganization Act of 1994. The Secretary may use the 
        services of such committees in carrying out programs under other 
        authorities administered by the Secretary .
            ``(E) Regulations.--The Secretary shall issue such regulations as 
        the Secretary considers necessary relating to the selection and exercise 
        of the functions of the respective committees, and to the administration 
        through such committees of the programs described in subparagraph (D). 
        Pursuant to such regulations, each county and area committee shall 
        select an executive director for the area or county. Such selection 
        shall be made in the same manner as provided for the selection of the 
        county executive director under section 7.21(b)(2) of title 7, Code of 
        Federal Regulations, as in effect on January 1, 1994. Regulations 
        governing payments or grants under this subsection shall be as simple 
        and direct as possible, and, whenever practicable, they shall be 
        classified on the following two bases:
                    ``(i) Soil-depleting practices.
                    ``(ii) Soil-building practices.
            ``(F) Mandatory duties of secretary.--In carrying out this section, 
        the Secretary shall--
                    ``(i) insofar as practicable, protect the interests of 
                tenants and sharecroppers;
                    ``(ii) accord such encouragement to producer-owned and 
                producer-controlled cooperative associations as will be in 
                harmony with the policy toward cooperative associations set 
                forth in Federal laws and as will tend to promote efficient 
                methods of marketing and distribution;
                    ``(iii) in every practicable manner, protect the interests 
                of small producers; and
                    ``(iv) in every practical way, encourage and provide for 
                soil-conserving and soil-rebuilding practices.
            ``(G) Discretionary authorities of secretary.--In carrying out this 
        section, the Secretary may use other approved agencies.
            ``(H) Limitations.--In carrying out this section, the Secretary 
        shall not have the authority to acquire any land or any right or 
        interest in land.''.
    (b) Elimination of FmHA County Committees.--The Consolidated Farm and Rural 
Development Act (7 U.S.C. 1921 et seq.) is amended--
            (1) by striking section 332 (7 U.S.C. 1982); and
            (2) in section 333 (7 U.S.C. 1983)--
                    (A) by striking paragraph (2); and
                    (B) redesignating paragraphs (3), (4), and (5) as paragraphs 
                (2), (3), and (4), respectively.

              Subtitle C--Rural Economic and Community Development

SEC. 231. UNDER SECRETARY OF AGRICULTURE FOR RURAL ECONOMIC AND COMMUNITY 
              DEVELOPMENT.

    (a) Authorization.--The Secretary is authorized to establish in the 
Department the position of Under Secretary of Agriculture for Rural Economic and 
Community Development.
    (b) Confirmation Required.--If the Secretary establishes the position of 
Under Secretary of Agriculture for Rural Economic and Community Development 
authorized under subsection (a), the Under Secretary shall be appointed by the 
President, by and with the advice and consent of the Senate.
    (c) Functions of Under Secretary.--
            (1) Principal functions.--Upon establishment, the Secretary shall 
        delegate to the Under Secretary of Agriculture for Rural Economic and 
        Community Development those functions under the jurisdiction of the 
        Department that are related to rural economic and community development.
            (2) Additional functions.--The Under Secretary of Agriculture for 
        Rural Economic and Community Development shall perform such other 
        functions as may be required by law or prescribed by the Secretary.
    (d) Succession.--Any official who is serving as Under Secretary of 
Agriculture for Small Community and Rural Development on the date of the 
enactment of this Act and who was appointed by the President, by and with the 
advice and consent of the Senate, shall not be required to be reappointed under 
subsection (b) to the successor position authorized under subsection (a) if the 
Secretary establishes the position, and the official occupies the new position, 
within 180 days after the date of the enactment of this Act (or such later date 
set by the Secretary if litigation delays rapid succession).
    (e) Loan Approval Authority.--Approval authority for loans and loan 
guarantees in connection with the electric and telephone loan and loan guarantee 
programs authorized by the Rural Electrification Act of 1936 (7 U.S.C. 901 et 
seq.) shall not be transferred to, or conditioned on review of, a State director 
or other employee whose primary duty is not the review and approval of such 
loans or the provision of assistance to such borrowers.
    (f) Conforming Amendments.--
            (1) Existing position.--Section 3 of the Rural Development Policy 
        Act of 1980 (7 U.S.C. 2211b) is amended by striking subsection (a).
            (2) Executive schedule.--Section 5314 of title 5, United States 
        Code, is amended by striking ``Under Secretary of Agriculture for Small 
        Community and Rural Development.'' and inserting ``Under Secretary of 
        Agriculture for Rural Economic and Community Development.''.
            (3) Repeal of rural development administration.--Section 364 of the 
        Consolidated Farm and Rural Development Act (7 U.S.C. 2006f) is 
        repealed.

SEC. 232. RURAL UTILITIES SERVICE.

    (a) Establishment Required.--The Secretary shall establish and maintain 
within the Department the Rural Utilities Service and assign to the Service such 
functions as the Secretary considers appropriate.
    (b) Administrator.--
            (1) Appointment.--The Rural Utilities Service shall be headed by an 
        Administrator who shall be appointed by the President, by and with the 
        advice and consent of the Senate.
            (2) Succession.--Any official who is serving as Administrator of the 
        Rural Electrification Administration on the date of the enactment of 
        this Act and who was appointed by the President, by and with the advice 
        and consent of the Senate--
                    (A) may be considered to be serving in the successor 
                position established under paragraph (1); and
                    (B) shall not be required to be reappointed to that position 
                by reason of the enactment of this Act.
            (3) Executive schedule.--Section 5315 of title 5, United States 
        Code, is amended by adding at the end the following:
            ``Administrator, Rural Utilities Service, Department of 
        Agriculture.''.
    (c) Functions.--The Secretary shall carry out through the Rural Utilities 
Service the following functions that are under the jurisdiction of the 
Department:
            (1) Electric and telephone loan programs and water and waste 
        facility activities authorized by law, including--
                    (A) the Rural Electrification Act of 1936 (7 U.S.C. 901 et 
                seq.); and
                    (B) section 2322 of the Food, Agriculture, Conservation, and 
                Trade Act of 1990 (7 U.S.C. 1926-1); and
            (2) Water and waste facility programs and activities authorized by 
        law, including--
                    (A) sections 306, 306A, 306B, and 306C, the provisions of 
                sections 309 and 309A relating to assets, terms, and conditions 
                of water and sewer programs, section 310B(b)(2), and the 
                amendment made by section 342 of the Consolidated Farm and Rural 
                Development Act (7 U.S.C. 1926, 1926a, 1926b, 1926c, 1929, 
                1929a, 1932(b)(2), and 1013a); and
                    (B) section 2324 of the Food, Agriculture, Conservation, and 
                Trade Act of 1990 (7 U.S.C. 1926 note).

SEC. 233. RURAL HOUSING AND COMMUNITY DEVELOPMENT SERVICE.

    (a) Establishment Authorized.--Notwithstanding any other provision of law, 
the Secretary is authorized to establish and maintain within the Department the 
Rural Housing and Community Development Service and to assign to the Service 
such functions as the Secretary considers appropriate.
    (b) Functions.--If the Secretary establishes the Rural Housing and Community 
Development Service under subsection (a), the Secretary is authorized to assign 
to the Service jurisdiction over the following:
            (1) Programs and activities under title V of the Housing Act of 1949 
        (42 U.S.C. 1471 et seq.).
            (2) Programs and activities authorized under section 310B(i) of the 
        Consolidated Farm and Rural Development Act (7 U.S.C. 1932(i)) and 
        related provisions of law.
            (3) Programs and activities that relate to rural community lending 
        programs, including programs authorized by sections 365 through 369 of 
        the Consolidated Farm and Rural Development Act (7 U.S.C. 2008-2008d).

SEC. 234. RURAL BUSINESS AND COOPERATIVE DEVELOPMENT SERVICE.

    (a) Establishment Authorized.--Notwithstanding any other provision of law, 
the Secretary is authorized to establish and maintain within the Department the 
Rural Business and Cooperative Development Service and to assign to the Service 
such functions as the Secretary considers appropriate.
    (b) Functions.--If the Secretary establishes the Rural Business and 
Cooperative Development Service under subsection (a), the Secretary is 
authorized to assign to the Service jurisdiction over the following:
            (1) Section 313 and title V of the Rural Electrification Act of 1936 
        (7 U.S.C. 940c and 950aa et seq.).
            (2) subtitle G of title XVI of the Food, Agriculture, Conservation, 
        and Trade Act of 1990 (7 U.S.C. 5901 et seq.).
            (3) Sections 306(a)(1) and 310B of the Consolidated Farm and Rural 
        Development Act (7 U.S.C. 1926(a)(1) and 1932).
            (4) Section 1323 of the Food Security Act of 1985 (Public Law 99-
        198; 7 U.S.C. 1932 note).
            (5) The Act of July 2, 1926 (44 Stat. 802, chapter 725; 7 U.S.C. 451 
        et seq.).

SEC. 235. CONFORMING AMENDMENTS REGARDING RURAL ELECTRIFICATION ADMINISTRATION.

    (a) Amendments to Rural Electrification Act of 1936.--The Rural 
Electrification Act of 1936 (7 U.S.C. 901 et seq.) is amended--
            (1) by striking the first section (7 U.S.C. 901) and inserting the 
        following:

``SECTION 1. SHORT TITLE.

    ``This Act may be cited as the `Rural Electrification Act of 1936'.'';
            (2) in section 2(a) (7 U.S.C. 902(a)), by striking ``Administrator'' 
        and inserting ``Secretary of Agriculture'';
            (3) in section 3(a) (7 U.S.C. 903(a))--
                    (A) by striking ``Administrator, upon the request and 
                approval of the Secretary of Agriculture,'' and inserting 
                ``Secretary''; and
                    (B) by striking ``Administrator appointed pursuant to the 
                provisions of this Act or from the Administrator of the Rural 
                Electrification Administration established by Executive Order 
                Numbered 7037'' and inserting ``Secretary'';
            (4) in section 8 (7 U.S.C. 908)--
                    (A) by striking ``Administrator authorized to be appointed 
                by this Act'' and inserting ``Secretary''; and
                    (B) by striking ``Rural Electrification Administration 
                created by this Act'' and inserting ``Secretary'';
            (5) by striking section 11A (7 U.S.C. 911a);
            (6) in section 13 (7 U.S.C. 913), by inserting before the period at 
        the end the following: ``; and the term `Secretary' shall be deemed to 
        mean the Secretary of Agriculture'';
            (7) in sections 206(b)(2), 306A(b), 311, and 405(b)(1)(A) (7 U.S.C. 
        927(b)(2), 936a(b), 940a, and 945(b)(1)(A)), by striking ``Rural 
        Electrification Administration'' each place it appears and inserting 
        ``Secretary'';
            (8) in sections 305(c)(2)(C)(ii)(II) and 306E(d) (7 U.S.C. 
        935(c)(2)(C)(ii)(II) and 936e(d)), by striking ``Administrator'' and 
        inserting ``Secretary'';
            (9) in section 403(b) (7 U.S.C. 943(b)), by striking ``Rural 
        Electrification Administration or of any other agency of the Department 
        of Agriculture,'' and inserting ``Secretary,'';
            (10) in section 404 (7 U.S.C. 944), by striking ``the Administrator 
        of the Rural Electrification Administration'' and inserting ``the 
        Secretary shall designate an official of the Department of Agriculture 
        who'';
            (11) in sections 406(c) and 410 (7 U.S.C. 946(c) and 950), by 
        striking ``Administrator of the Rural Electrification Administration'' 
        each place it appears and inserting ``Secretary'';
            (12) in the heading of section 501 (7 U.S.C. 950aa), by striking 
        ``of rea administrator''; and
            (13) except as otherwise provided in this subsection, by striking 
        ``Administrator'' each place it appears in such Act and inserting 
        ``Secretary''.
    (b) Miscellaneous Amendments.--(1) Section 236(a) of the Disaster Relief Act 
of 1970 (7 U.S.C. 912a) is amended by striking ``Rural Electrification 
Administration'' and inserting ``Secretary under the Rural Electrification Act 
of 1936 (7 U.S.C. 901 et seq.)''.
    (2) Section 505 of the Department of Agriculture Organic Act of 1944 (7 
U.S.C. 915) is amended--
                    (A) by striking ``Rural Electrification Administration'' and 
                inserting ``Secretary of Agriculture''; and
                    (B) by striking ``its'' and inserting ``the Secretary's''.
    (3) Section 401 of the Rural Electrification Act of 1938 (7 U.S.C. 903 note) 
is amended in the second paragraph by striking ``Administrator of the Rural 
Electrification Administration'' and inserting ``Secretary of Agriculture''.
    (4) Chapter 1 of subtitle D of title XXIII of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 950aaa et seq.), relating to 
Distance Learning and Medical Link Programs, is amended--
            (A) in section 2333--
                    (i) by striking paragraph (1); and
                    (ii) by redesignating paragraphs (2) through (11) as 
                paragraphs (1) through (10), respectively;
            (B) in section 2334(h)(2), by striking ``section 2333(3)(F)'' and 
        inserting ``section 2333(2)(F)''; and
            (C) by striking ``Administrator'' each place it appears and 
        inserting ``Secretary''.
    (5) Section 306(a)(15) of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1926(a)(15)) is amended--
            (A) by striking subparagraph (C); and
            (B) by redesignating subparagraph (D) as subparagraph (C).
    (6) Section 2322(d) of the Food, Agriculture, Conservation, and Trade Act of 
1990 (7 U.S.C. 1926-1(d)) is amended--
            (A) by striking paragraph (2); and
            (B) by redesignating paragraph (3) as paragraph (2).

               Subtitle D--Food, Nutrition, and Consumer Services

SEC. 241. UNDER SECRETARY OF AGRICULTURE FOR FOOD, NUTRITION, AND CONSUMER 
              SERVICES.

    (a) Authorization.--The Secretary is authorized to establish in the 
Department the position of Under Secretary of Agriculture for Food, Nutrition, 
and Consumer Services.
    (b) Confirmation Required.--If the Secretary establishes the position of 
Under Secretary of Agriculture for Food, Nutrition, and Consumer Services 
authorized under subsection (a), the Under Secretary shall be appointed by the 
President, by and with the advice and consent of the Senate.
    (c) Functions of Under Secretary.--
            (1) Principal functions.--Upon establishment, the Secretary shall 
        delegate to the Under Secretary of Agriculture for Food, Nutrition, and 
        Consumer Services those functions under the jurisdiction of the 
        Department that are related to food, nutrition, and consumer services 
        (except as provided in section 261(b)(1)).
            (2) Additional functions.--The Under Secretary of Agriculture for 
        Food, Nutrition, and Consumer Services shall perform such other 
        functions as may be required by law or prescribed by the Secretary.
    (d) Succession.--Any official who is serving as Assistant Secretary of 
Agriculture for Food and Consumer Services on the date of the enactment of this 
Act and who was appointed by the President, by and with the advice and consent 
of the Senate, shall not be required to be reappointed under subsection (b) to 
the successor position authorized under subsection (a) if the Secretary 
establishes the position, and the official occupies the new position, within 180 
days after the date of the enactment of this Act (or such later date set by the 
Secretary if litigation delays rapid succession).
    (e) Executive Schedule.--Section 5314 of title 5, United States Code, is 
amended by inserting after the item relating to the Under Secretary of 
Agriculture for Farm and Foreign Agricultural Services (as added by section 
225(e)(2)) the following:
            ``Under Secretary of Agriculture for Food, Nutrition, and Consumer 
        Services.''.

                  Subtitle E--Natural Resources and Environment

SEC. 245. UNDER SECRETARY OF AGRICULTURE FOR NATURAL RESOURCES AND ENVIRONMENT.

    (a) Authorization.--The Secretary is authorized to establish in the 
Department the position of Under Secretary of Agriculture for Natural Resources 
and Environment.
    (b) Confirmation Required.--If the Secretary establishes the position of 
Under Secretary of Agriculture for Natural Resources and Environment authorized 
under subsection (a), the Under Secretary shall be appointed by the President, 
by and with the advice and consent of the Senate.
    (c) Functions of Under Secretary.--
            (1) Principal functions.--Upon establishment, the Secretary shall 
        delegate to the Under Secretary of Agriculture for Natural Resources and 
        Environment those functions under the jurisdiction of the Department 
        that are related to natural resources and environment (except to the 
        extent those functions are delegated under section 226).
            (2) Additional functions.--The Under Secretary of Agriculture for 
        Natural Resources and Environment shall perform such other functions and 
        duties as may be required by law or prescribed by the Secretary.
    (d) Succession.--Any official who is serving as Assistant Secretary of 
Agriculture for Natural Resources and Environment on the date of the enactment 
of this Act and who was appointed by the President, by and with the advice and 
consent of the Senate, shall not be required to be reappointed under subsection 
(b) to the successor position authorized under subsection (a) if the Secretary 
establishes the position, and the official occupies the new position, within 180 
days after the date of the enactment of this Act (or such later date set by the 
Secretary if litigation delays rapid succession).
    (e) Executive Schedule.--Section 5314 of title 5, United States Code, is 
amended by inserting after the item relating to the Under Secretary of 
Agriculture for Food, Nutrition, and Consumer Services (as added by section 
241(e)) the following:
            ``Under Secretary of Agriculture for Natural Resources and 
        Environment.''.

SEC. 246. NATURAL RESOURCES CONSERVATION SERVICE.

    (a) Establishment.--The Secretary is authorized to establish and maintain 
within the Department a Natural Resources Conservation Service.
    (b) Functions.--If the Secretary establishes the Natural Resources 
Conservation Service under subsection (a), the Secretary is authorized to assign 
to the Service jurisdiction over the following:
            (1) The rural environmental conservation program under title X of 
        the Agricultural Act of 1970 (16 U.S.C. 1501 et seq.).
            (2) The Great Plains Conservation Program under section 16(b) of the 
        Soil Conservation and Domestic Allotment Act (16 U.S.C. 590p(b)).
            (3) The Water Bank Act (16 U.S.C. 1301 et seq.);
            (4) The forestry incentive program under section 4 of the 
        Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 2103).
            (5) Title XII of the Food Security Act of 1985 (16 U.S.C. 3801 et 
        seq.), except subchapter B of chapter 1 of subtitle D of such title.
            (6) Salinity control program under section 202(c) of the Colorado 
        River Basin Salinity Control Act (43 U.S.C. 1592(c)).
            (7) The Farms for the Future Act of 1990 (7 U.S.C. 4201 note).
            (8) Such other functions as the Secretary considers appropriate, 
        except functions under subchapter B of chapter 1 of subtitle D of title 
        XII of the Food Security Act of 1985 (16 U.S.C. 3831-3836) and the 
        agricultural conservation program under the Soil Conservation and 
        Domestic Allotment Act (16 U.S.C. 590g et seq.).
    (c) Special Concurrence Requirements for Certain Functions.--In carrying out 
the programs specified in paragraphs (2), (3), (4), and (6) of subsection (b) 
and the program under subchapter C of chapter 1 of subtitle D of title XII of 
the Food Security Act of 1985 (16 U.S.C. 3837-3837f), the Secretary shall--
            (1) acting on the recommendations of the Natural Resources 
        Conservation Service, with the concurrence of the Consolidated Farm 
        Service Agency, issue regulations to carry out such programs;
            (2) ensure that the Natural Resources Conservation Service, in 
        establishing policies, priorities, and guidelines for each such program, 
        does so with the concurrence of the Consolidated Farm Service Agency at 
        national, State, and local levels;
            (3) ensure that, in reaching such concurrence at the local level, 
        the Natural Resources Conservation Service works in cooperation with 
        Soil and Water Conservation Districts or similar organizations 
        established under State law;
            (4) ensure that officials of county and area committees established 
        under section 8(b)(5) of the Soil Conservation and Domestic Allotment 
        Act (16 U.S.C. 590h(b)(5)) meet annually with officials of such 
        Districts or similar organizations to consider local conservation 
        priorities and guidelines; and
            (5) take steps to ensure that the concurrence process does not 
        interfere with the effective delivery of such programs.
    (d) Use of Federal and Non-Federal Employees.--
            (1) Use authorized.--In the implementation of functions assigned to 
        the Natural Resources Conservation Service, the Secretary may use 
        interchangeably in local offices of the Service both Federal employees 
        of the Department and non-Federal employees of county and area 
        committees established under section 8(b)(5) of the Soil Conservation 
        and Domestic Allotment Act (16 U.S.C. 590h(b)(5)).
            (2) Exception.--Notwithstanding paragraph (1), no personnel action 
        (as defined in section 2302(a)(2)(A) of title 5, United States Code) may 
        be taken with respect to a Federal employee unless such action is taken 
        by another Federal employee.
    (e) Savings Provision.--For purposes of subsections (c) and (d) of this 
section:
            (1) A reference to the ``Natural Resources Conservation Service'' 
        includes any other office, agency, or administrative unit of the 
        Department assigned the functions authorized for the Natural Resources 
        Conservation Service under this section.
            (2) A reference to the ``Consolidated Farm Service Agency'' includes 
        any other office, agency, or administrative unit of the Department 
        assigned the functions authorized for the Consolidated Farm Service 
        Agency under section 226.
    (f) Conforming Amendments.--
            (1) Soil conservation service.--Section 5 of the Soil Conservation 
        and Domestic Allotment Act (16 U.S.C. 590e) is repealed.
            (2) Soil and water resources conservation.--The Soil and Water 
        Resources Conservation Act of 1977 (16 U.S.C. 2001) is amended--
                    (A) in section 2(2) (16 U.S.C. 2001(2))--
                            (i) by striking ``created the Soil Conservation 
                        Service''; and
                            (ii) by striking ``Department of Agriculture which'' 
                        and inserting ``, has ensured that the Department of 
                        Agriculture'';
                    (B) in section 3(2) (16 U.S.C. 2002(2)), by striking 
                ``through the Soil Conservation Service''; and
                    (C) in section 6(a) (16 U.S.C. 2005(a)), by striking ``Soil 
                Conservation Service'' and inserting ``Secretary''.
            (3) State technical committees.--Section 1262 of the Food Security 
        Act of 1985 (16 U.S.C. 3862) is amended by adding at the end the 
        following new subsection:
    ``(e) FACA requirements.--The committees established under section 1261 
shall be exempt from the Federal Advisory Committee Act (5 U.S.C. App.).''.

SEC. 247. REORGANIZATION OF FOREST SERVICE.

    (a) Required Elements of Reorganization Proposals.--Reorganization proposals 
that are developed by the Secretary to carry out the designation by the 
President of the Forest Service as a Reinvention Lab pursuant to the National 
Performance Review, dated September 1993, shall include proposals for--
            (1) reorganizing the Service in a manner that is consistent with the 
        principles of interdisciplinary planning;
            (2) redefining and consolidating the mission and roles of, and 
        research conducted by, employees of the Service in connection with the 
        National Forest System and State and private forestry to facilitate 
        interdisciplinary planning and to eliminate functionalism;
            (3) reforming the budget structure of the Service to support 
        interdisciplinary planning, including reducing the number of budget line 
        items;
            (4) defining new measures of accountability so that Congress may 
        meet the constitutional obligation of Congress to oversee the Service;
            (5) achieving structural and organizational consolidations;
            (6) to the extent practicable, sharing office space, equipment, 
        vehicles, and electronic systems with other administrative units of the 
        Department and other Federal field offices, including proposals for 
        using an on-line system by all administrative units of the Department to 
        maximize administrative efficiency; and
            (7) reorganizing the Service in a manner that will result in a 
        larger percentage of employees of the Service being retained at 
        organizational levels below regional offices, research stations, and the 
        area office of the Service.
    (b) Report.--Not later than March 31, 1995, the Secretary shall submit a 
report to the Committee on Agriculture of the House of Representatives and the 
Committee on Agriculture, Nutrition, and Forestry of the Senate that describes 
actions taken to carry out subsection (a), identifies any disparities in 
regional funding patterns, and contains the rationale behind the disparities.

                 Subtitle F--Research, Education, and Economics

SEC. 251. UNDER SECRETARY OF AGRICULTURE FOR RESEARCH, EDUCATION, AND ECONOMICS.

    (a) Authorization.--The Secretary is authorized to establish in the 
Department the position of Under Secretary of Agriculture for Research, 
Education, and Economics.
    (b) Confirmation Required.--If the Secretary establishes the position of 
Under Secretary of Agriculture for Research, Education, and Economics authorized 
under subsection (a), the Under Secretary shall be appointed by the President, 
by and with the advice and consent of the Senate.
    (c) Functions of Under Secretary.--
            (1) Principal functions.--Upon establishment, the Secretary shall 
        delegate to the Under Secretary of Agriculture for Research, Education, 
        and Economics those functions and duties under the jurisdiction of the 
        Department that are related to research, education, and economics.
            (2) Additional functions.--The Under Secretary of Agriculture for 
        Research, Education, and Economics shall perform such other functions 
        and duties as may be required by law or prescribed by the Secretary.
    (d) Cooperative State Research, Education, and Extension Service.--
            (1) Establishment.--There is established in the Department a 
        Cooperative State Research, Education, and Extension Service.
            (2) Functions.--The Secretary shall delegate to the Cooperative 
        State Research, Education, and Extension Service functions related to 
        cooperative State research programs and cooperative extension and 
        education programs that are under the jurisdiction of the Department.
            (3) Officer-in-charge.--If the Secretary establishes the position of 
        Under Secretary of Agriculture for Research, Education, and Economics, 
        the officer in charge of the Cooperative State Research, Education, and 
        Extension Service shall report directly to the Under Secretary.
    (e) Executive Schedule.--Section 5314 of title 5, United States Code, is 
amended by inserting after the item relating to the Under Secretary of 
Agriculture for Natural Resources and Environment (as added by section 245(e)) 
the following:
            ``Under Secretary of Agriculture for Research, Education, and 
        Economics.''.

SEC. 252. PROGRAM STAFF.

    In making the personnel reductions required under section 213, the Secretary 
shall reduce the number of Federal research and education personnel of the 
Department by a percentage equal to at least the percentage of overall 
Department personnel reductions. The Secretary shall achieve such reduction in 
research and education personnel in a manner that minimizes duplication and 
maximizes coordination between Federal and State research and extension 
activities.

                             Subtitle G--Food Safety

SEC. 261. UNDER SECRETARY OF AGRICULTURE FOR FOOD SAFETY.

    (a) Establishment.--There is established in the Department of Agriculture 
the position of Under Secretary of Agriculture for Food Safety. The Under 
Secretary shall be appointed by the President, by and with the advice and 
consent of the Senate, from among individuals with specialized training or 
significant experience in food safety or public health programs.
    (b) Functions of Under Secretary.--
            (1) Principal functions.--The Secretary shall delegate to the Under 
        Secretary of Agriculture for Food Safety those functions and duties 
        under the jurisdiction of the Department that are primarily related to 
        food safety.
            (2) Additional functions.--The Under Secretary of Agriculture for 
        Food Safety shall perform such other functions and duties as may be 
        required by law or prescribed by the Secretary.
    (c) Executive Schedule.--Section 5314 of title 5, United States Code, is 
amended by inserting after the item relating to the Under Secretary of 
Agriculture for Research, Education, and Economics (as added by section 251(e)) 
the following:
            ``Under Secretary of Agriculture for Food Safety.''.
    (d) Technical and Scientific Review Groups.--The Secretary, acting through 
the Under Secretary for Research, Education, and Economics, may, without regard 
to the provisions of title 5, United States Code, governing appointment in the 
competitive service, and without regard to the provisions of chapter 51 and 
subchapter III of chapter 53 of title 5, United States Code, relating to 
classification and General Schedule pay rates--
            (1) establish such technical and scientific review groups as are 
        needed to carry out the functions of the Department; and
            (2) appoint and pay the members of the groups, except that officers 
        and employees of the United States shall not receive additional 
        compensation for service as a member of a group.

SEC. 262. CONDITIONS FOR IMPLEMENTATION OF ALTERATIONS IN THE LEVEL OF ADDITIVES 
              ALLOWED IN ANIMAL DIETS.

    (a) Conditions.--The Food and Drug Administration shall not implement or 
enforce the final rule described in subsection (b) to alter the level of 
selenium allowed to be used as a supplement in animal diets unless the 
Commissioner of the Food and Drug Administration makes a determination that--
            (1) selenium additives are not essential, at levels authorized in 
        the absence of such final rule, to maintain animal nutrition and protect 
        animal health;
            (2) selenium at such levels is not safe to the animals consuming the 
        additive;
            (3) selenium at such levels is not safe to individuals consuming 
        edible portions of animals that receive the additive;
            (4) selenium at such levels does not achieve its intended effect of 
        promoting normal growth and reproduction of livestock and poultry; and
            (5) the manufacture and use of selenium at such levels cannot 
        reasonably be controlled by adherence to current good manufacturing 
        practice requirements.
    (b) Final Rule Described.--The final rule referred to in subsection (a) is 
the final rule issued by the Food and Drug Administration and published in the 
Federal Register on September 13, 1993 (58 Fed. Reg. 47962), in which the 
Administration stayed 1987 amendments to the selenium food additive regulations, 
and any modification of such rule issued after the date of the enactment of this 
Act.

                      Subtitle H--National Appeals Division

SEC. 271. DEFINITIONS.

    For purposes of this subtitle:
            (1) Adverse decision.--The term ``adverse decision'' means an 
        administrative decision made by an officer, employee, or committee of an 
        agency that is adverse to a participant. The term includes a denial of 
        equitable relief by an agency or the failure of an agency to issue a 
        decision or otherwise act on the request or right of the participant. 
        The term does not include a decision over which the Board of Contract 
        Appeals has jurisdiction.
            (2) Agency.--The term ``agency'' means any agency of the Department 
        designated by the Secretary or a successor agency of the Department, 
        except that the term shall include the following (and any successor to 
        the following):
                    (A) The Consolidated Farm Service Agency (or other office, 
                agency, or administrative unit of the Department assigned the 
                functions authorized for the Consolidated Farm Service Agency 
                under section 226).
                    (B) The Commodity Credit Corporation, with respect to 
                domestic programs.
                    (C) The Farmers Home Administration.
                    (D) The Federal Crop Insurance Corporation.
                    (E) The Rural Development Administration.
                    (F) The Natural Resources Conservation Service (or other 
                office, agency, or administrative unit of the Department 
                assigned the functions authorized for the Natural Resources 
                Conservation Service under section 246(b)).
                    (G) A State, county, or area committee established under 
                section 8(b)(5) of the Soil Conservation and Domestic Allotment 
                Act (16 U.S.C. 590h(b)(5)).
            (3) Appellant.--The term ``appellant'' means a participant who 
        appeals an adverse decision in accordance with this subtitle.
            (4) Case record.--The term ``case record'' means all the materials 
        maintained by the Secretary related to an adverse decision.
            (5) Director.--The term ``Director'' means the Director of the 
        Division.
            (6) Division.--The term ``Division'' means the National Appeals 
        Division established by this title.
            (7) Hearing officer.--The term ``hearing officer'' means an 
        individual employed by the Division who hears and determines appeals of 
        adverse decisions by any agency.
            (8) Implement.--The term ``implement'' refers to those actions 
        necessary to effectuate fully and promptly a final determination of the 
        Division not later than 30 calendar days after the effective date of the 
        final determination.
            (9) Participant.--The term ``participant'' shall have the meaning 
        given that term by the Secretary by regulation.

SEC. 272. NATIONAL APPEALS DIVISION AND DIRECTOR.

    (a) Establishment of Division.--The Secretary shall establish and maintain 
an independent National Appeals Division within the Department to carry out this 
subtitle.
    (b) Director.--
            (1) Appointment.--The Division shall be headed by a Director, 
        appointed by the Secretary from among persons who have substantial 
        experience in practicing administrative law. In considering applicants 
        for the position of Director, the Secretary shall consider persons 
        currently employed outside Government as well as Government employees.
            (2) Term and removal.--The Director shall serve for a 6-year term of 
        office, and shall be eligible for reappointment. The Director shall not 
        be subject to removal during the term of office, except for cause 
        established in accordance with law.
            (3) Position classification.--The position of the Director may not 
        be a position in the excepted service or filled by a noncareer 
        appointee.
    (c) Direction, Control, and Support.--The Director shall be free from the 
direction and control of any person other than the Secretary. The Division shall 
not receive administrative support (except on a reimbursable basis) from any 
agency other than the Office of the Secretary. The Secretary may not delegate to 
any other officer or employee of the Department, other than the Director, the 
authority of the Secretary with respect to the Division.
    (d) Determination of Appealability of Agency Decisions.--If an officer, 
employee, or committee of an agency determines that a decision is not appealable 
and a participant appeals the decision to the Director, the Director shall 
determine whether the decision is adverse to the individual participant and thus 
appealable or is a matter of general applicability and thus not subject to 
appeal. The determination of the Director as to whether a decision is appealable 
shall be administratively final.
    (e) Division Personnel.--The Director shall appoint such hearing officers 
and other employees as are necessary for the administration of the Division. A 
hearing officer or other employee of the Division shall have no duties other 
than those that are necessary to carry out this subtitle.

SEC. 273. TRANSFER OF FUNCTIONS.

    There are transferred to the Division all functions exercised and all 
administrative appeals pending before the effective date of this subtitle 
(including all related functions of any officer or employee) of or relating to--
            (1) the National Appeals Division established by section 426(c) of 
        the Agricultural Act of 1949 (7 U.S.C. 1433e(c)) (as in effect on the 
        day before the date of the enactment of this Act);
            (2) the National Appeals Division established by subsections (d) 
        through (g) of section 333B of the Consolidated Farm and Rural 
        Development Act (7 U.S.C. 1983b) (as in effect on the day before the 
        date of the enactment of this Act);
            (3) appeals of decisions made by the Federal Crop Insurance 
        Corporation; and
            (4) appeals of decisions made by the Soil Conservation Service (as 
        in effect on the day before the date of the enactment of this Act).

SEC. 274. NOTICE AND OPPORTUNITY FOR HEARING.

    Not later than 10 working days after an adverse decision is made that 
affects the participant, the Secretary shall provide the participant with 
written notice of such adverse decision and the rights available to the 
participant under this subtitle or other law for the review of such adverse 
decision.

SEC. 275. INFORMAL HEARINGS.

    If an officer, employee, or committee of an agency makes an adverse 
decision, the agency shall hold, at the request of the participant, an informal 
hearing on the decision. With respect to programs carried out through the 
Consolidated Farm Service Agency (or other office, agency, or administrative 
unit of the Department assigned to carry out the programs authorized for the 
Consolidated Farm Service Agency under section 226), the Secretary shall 
maintain the informal appeals process applicable to such programs, as in effect 
on the date of the enactment of the subtitle. If a mediation program is 
available under title V of the Agricultural Credit Act of 1987 (7 U.S.C. 5101 et 
seq.) as a part of the informal hearing process, the participant shall be 
offered the right to choose such mediation.

SEC. 276. RIGHT OF PARTICIPANTS TO DIVISION HEARING.

    (a) Appeal to Division for Hearing.--Subject to subsection (b), a 
participant shall have the right to appeal an adverse decision to the Division 
for an evidentiary hearing by a hearing officer consistent with section 277.
    (b) Time for Appeal.--To be entitled to a hearing under section 277, a 
participant shall request the hearing not later than 30 days after the date on 
which the participant first received notice of the adverse decision.

SEC. 277. DIVISION HEARINGS.

    (a) General Powers of Director and Hearing Officers.--
            (1) Access to case record.--The Director and hearing officer shall 
        have access to the case record of any adverse decision appealed to the 
        Division for a hearing.
            (2) Administrative procedures.--The Director and hearing officer 
        shall have the authority to require the attendance of witnesses, and the 
        production of evidence, by subpoena and to administer oaths and 
        affirmations. Except to the extent required for the disposition of ex 
        parte matters as authorized by law--
                    (A) an interested person outside the Division shall not make 
                or knowingly cause to be made to the Director or a hearing 
                officer who is or may reasonably be expected to be involved in 
                the evidentiary hearing or review of an adverse decision, an ex 
                parte communication (as defined in section 551(14) of title 5, 
                United States Code) relevant to the merits of the proceeding;
                    (B) the Director and such hearing officer shall not make or 
                knowingly cause to be made to any interested person outside the 
                Division an ex parte communication relevant to the merits of the 
                proceeding.
    (b) Time for Hearing.--Upon a timely request for a hearing under section 
276(b), an appellant shall have the right to have a hearing by the Division on 
the adverse decision within 45 days after the date of the receipt of the request 
for the hearing.
    (c) Location and Elements of Hearing.--
            (1) Location.--A hearing on an adverse decision shall be held in the 
        State of residence of the appellant or at a location that is otherwise 
        convenient to the appellant and the Division.
            (2) Evidentiary hearing.--The evidentiary hearing before a hearing 
        officer shall be in person, unless the appellant agrees to a hearing by 
        telephone or by a review of the case record. The hearing officer shall 
        not be bound by previous findings of fact by the agency in making a 
        determination.
            (3) Information at hearing.--The hearing officer shall consider 
        information presented at the hearing without regard to whether the 
        evidence was known to the agency officer, employee, or committee making 
        the adverse decision at the time the adverse decision was made. The 
        hearing officer shall leave the record open after the hearing for a 
        reasonable period of time to allow the submission of information by the 
        appellant or the agency after the hearing to the extent necessary to 
        respond to new facts, information, arguments, or evidence presented or 
        raised by the agency or appellant.
            (4) Burden of proof.--The appellant shall bear the burden of proving 
        that the adverse decision of the agency was erroneous.
    (d) Determination Notice.--The hearing officer shall issue a notice of the 
determination on the appeal not later than 30 days after a hearing or after 
receipt of the request of the appellant to waive a hearing, except that the 
Director may establish an earlier or later deadline. If the determination is not 
appealed to the Director for review under section 278, the notice provided by 
the hearing officer shall be considered to be a notice of an administratively 
final determination.
    (e) Effective Date.--The final determination shall be effective as of the 
date of filing of an application, the date of the transaction or event in 
question, or the date of the original adverse decision, whichever is applicable.

SEC. 278. DIRECTOR REVIEW OF DETERMINATIONS OF HEARING OFFICERS.

    (a) Requests for Director Review.--
            (1) Time for request by appellant.--Not later than 30 days after the 
        date on which an appellant receives the determination of a hearing 
        officer under section 277, the appellant shall submit a written request 
        to the Director for review of the determination in order to be entitled 
        to a review by the Director of the determination.
            (2) Time for request by agency head.--Not later than 15 business 
        days after the date on which an agency receives the determination of a 
        hearing officer under section 277, the head of the agency may make a 
        written request that the Director review the determination.
    (b) Determination of Director.--The Director shall conduct a review of the 
determination of the hearing officer using the case record, the record from the 
evidentiary hearing under section 277, the request for review, and such other 
arguments or information as may be accepted by the Director. Based on such 
review, the Director shall issue a final determination notice that upholds, 
reverses, or modifies the determination of the hearing officer. However, if the 
Director determines that the hearing record is inadequate, the Director may 
remand all or a portion of the determination for further proceedings to complete 
the hearing record or, at the option of the Director, to hold a new hearing. The 
Director shall complete the review and either issue a final determination or 
remand the determination not later than--
            (1) 10 business days after receipt of the request for review, in the 
        case of a request by the head of an agency for review; or
            (2) 30 business days after receipt of the request for review, in the 
        case of a request by an appellant for review.
    (c) Basis for Determination.--The determination of the hearing officer and 
the Director shall be based on information from the case record, laws applicable 
to the matter at issue, and applicable regulations published in the Federal 
Register and in effect on the date of the adverse decision or the date on which 
the acts that gave rise to the adverse decision occurred, whichever date is 
appropriate.
    (d) Equitable Relief.--Subject to regulations issued by the Secretary, the 
Director shall have the authority to grant equitable relief under this section 
in the same manner and to the same extent as such authority is provided to the 
Secretary under section 326 of the Food and Agriculture Act of 1962 (7 U.S.C. 
1339a) and other laws. Notwithstanding the administrative finality of a final 
determination of an appeal by the Division, the Secretary shall have the 
authority to grant equitable or other types of relief to the appellant after an 
administratively final determination is issued by the Division.
    (e) Effective Date.--A final determination issued by the Director shall be 
effective as of the date of filing of an application, the date of the 
transaction or event in question, or the date of the original adverse decision, 
whichever is applicable.

SEC. 279. JUDICIAL REVIEW.

    A final determination of the Division shall be reviewable and enforceable by 
any United States district court of competent jurisdiction in accordance with 
chapter 7 of title 5, United States Code.

SEC. 280. IMPLEMENTATION OF FINAL DETERMINATIONS OF DIVISION.

    On the return of a case to an agency pursuant to the final determination of 
the Division, the head of the agency shall implement the final determination not 
later than 30 days after the effective date of the notice of the final 
determination.

SEC. 281. CONFORMING AMENDMENTS RELATING TO NATIONAL APPEALS DIVISION.

    (a) Decisions of State, County, and Area Committees.--
            (1) Application of subsection.--This subsection shall apply only 
        with respect to functions of the Consolidated Farm Service Agency or the 
        Commodity Credit Corporation that are under the jurisdiction of a State, 
        county, or area committee established under section 8(b)(5) of the Soil 
        Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)(5)) or an 
        employee of such a committee.
            (2) Finality.--Each decision of a State, county, or area committee 
        (or an employee of such a committee) covered by paragraph (1) that is 
        made in good faith in the absence of misrepresentation, false statement, 
        fraud, or willful misconduct shall be final not later than 90 days after 
        the date of filing of the application for benefits, unless the decision 
        is--
                    (A) appealed under this subtitle; or
                    (B) modified by the Administrator of the Consolidated Farm 
                Service Agency or the Executive Vice President of the Commodity 
                Credit Corporation.
            (3) Recovery of amounts.--If the decision of the State, county, or 
        area committee has become final under paragraph (2), no action may be 
        taken by the Consolidated Farm Service Agency, the Commodity Credit 
        Corporation, or a State, county, or area committee to recover amounts 
        found to have been disbursed as a result of a decision in error unless 
        the participant had reason to believe that the decision was erroneous.
            (4) Savings provision.--For purposes of this subsection, a reference 
        to the ``Consolidated Farm Service Agency'' includes any other office, 
        agency, or administrative unit of the Department assigned the functions 
        authorized for the Consolidated Farm Service Agency under section 226.
    (b) Agricultural Stabilization and Conservation Service.--Section 426 of the 
Agricultural Act of 1949 (7 U.S.C. 1433e) is repealed.
    (c) Farmers Home Administration.--Section 333B of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1983b) is repealed.

SEC. 282. EXPANSION OF ISSUES COVERED BY STATE MEDIATION PROGRAMS.

    (a) Expansion of Mediation Programs.--Section 501 of the Agricultural Credit 
Act of 1987 (7 U.S.C. 5101) is amended--
            (1) in subsection (a), by striking ``an agricultural loan mediation 
        program'' and inserting ``a mediation program'';
            (2) in subsection (b), by striking ``agricultural loan''; and
            (3) by striking subsection (c) and inserting the following new 
        subsection:
    ``(c) Requirements of State Mediation Programs.--
            ``(1) Issues covered.--To be certified as a qualifying State, the 
        mediation program of the State must provide mediation services for the 
        persons described in paragraph (2) who are involved in agricultural 
        loans or agricultural loans and one or more of the following issues 
        under the jurisdiction of the Department of Agriculture:
                    ``(A) Wetlands determinations.
                    ``(B) Compliance with farm programs, including conservation 
                programs.
                    ``(C) Agricultural credit.
                    ``(D) Rural water loan programs.
                    ``(E) Grazing on National Forest System lands.
                    ``(F) Pesticides.
                    ``(G) Such other issues as the Secretary considers 
                appropriate.
            ``(2) Persons eligible for mediation.--The persons referred to in 
        paragraph (1) are producers, their creditors (if applicable), and other 
        persons directly affected by actions of the Department of Agriculture.
            ``(3) Certification conditions.--The Secretary shall certify a State 
        as a qualifying State with respect to the issues proposed to be covered 
        by the mediation program of the State if the mediation program--
                    ``(A) provides for mediation services that, if decisions are 
                reached, result in mediated, mutually agreeable decisions 
                between the parties to the mediation;
                    ``(B) is authorized or administered by an agency of the 
                State government or by the Governor of the State;
                    ``(C) provides for the training of mediators;
                    ``(D) provides that the mediation sessions shall be 
                confidential;
                    ``(E) ensures, in the case of agricultural loans, that all 
                lenders and borrowers of agricultural loans receive adequate 
                notification of the mediation program; and
                    ``(F) ensures, in the case of other issues covered by the 
                mediation program, that persons directly affected by actions of 
                the Department of Agriculture receive adequate notification of 
                the mediation program.''.
    (b) Participation of Department.--Section 503 of such Act (7 U.S.C. 5103) is 
amended--
            (1) by striking ``agricultural loan'' each place it appears;
            (2) in the matter preceding subparagraph (A) of subsection (a)(1)--
                    (A) by inserting ``or agency'' after ``program''; and
                    (B) by striking ``that makes, guarantees, or insures 
                agricultural loans'';
            (3) in subsection (a)(1)(A)--
                    (A) by inserting ``or agency'' after ``such program''; and
                    (B) by inserting ``certified under section 501'' after 
                ``mediation program'';
            (4) in subsection (a)(1)(B)--
                    (A) by striking ``, effective beginning on the date of the 
                enactment of this Act,''; and
                    (B) by inserting ``certified under section 501'' after 
                ``mediation programs''; and
            (5) in subsection (a)(1)(C)--
                    (A) in clause (i), by striking ``described in'' and 
                inserting ``certified under''; and
                    (B) in clause (ii), by inserting ``if applicable,'' before 
                ``present''.
    (c) Regulations.--Section 504 of such Act (7 U.S.C. 5104) is amended--
            (1) by striking ``Within 150 days after the date of the enactment of 
        this Act, the'' and inserting ``The''; and
            (2) by adding at the end the following new sentence: ``The 
        regulations prescribed by the Secretary shall require qualifying States 
        to adequately train mediators to address all of the issues covered by 
        the mediation program of the State.''.
    (d) Report.--Section 505 of such Act (7 U.S.C. 5105) is amended by striking 
``1990'' and inserting ``1998''.
    (e) Authorization of Appropriations.--Section 506 of such Act (7 U.S.C. 
5106) is amended by striking ``1995'' and inserting ``2000''.
    (f) Conforming Amendments.--
            (1) References to agricultural loans.--Subtitle A of title V of such 
        Act is amended--
                    (A) in sections 502 and 505(1) (7 U.S.C. 5102, 5105(1)), by 
                striking ``agricultural loan'' each place it appears; and
                    (B) in section 505(3) (7 U.S.C. 5105(3)), by striking ``an 
                agricultural loan mediation'' and inserting ``a mediation''.
            (2) Waiver of farm credit system mediation rights by borrowers.--
        Section 4.14E of the Farm Credit Act of 1971 (12 U.S.C. 2202e) is 
        amended by striking ``agricultural loan''.
            (3) Waiver of fmha mediation rights by borrowers.--Section 358 of 
        the Consolidated Farm and Rural Development Act (7 U.S.C. 2006) is 
        amended by striking ``agricultural loan''.

SEC. 283. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated such sums as may be necessary to 
carry out the activities of the Division.

               Subtitle I--Miscellaneous Reorganization Provisions

SEC. 291. SUCCESSORSHIP PROVISIONS RELATING TO BARGAINING UNITS AND EXCLUSIVE 
              REPRESENTATIVES.

    (a) Voluntary Agreement.--
            (1) In general.--If the exercise of the Secretary's authority under 
        this title results in changes to an existing bargaining unit that has 
        been certified under chapter 71 of title 5, United States Code, the 
        affected parties shall attempt to reach a voluntary agreement on a new 
        bargaining unit and an exclusive representative for such unit.
            (2) Criteria.--In carrying out the requirements of this subsection, 
        the affected parties shall use criteria set forth in--
                    (A) sections 7103(a)(4), 7111(e), 7111(f)(1), and 7120 of 
                title 5, United States Code, relating to determining an 
                exclusive representative; and
                    (B) section 7112 of title 5, United States Code 
                (disregarding subsections (b)(5) and (d) thereof), relating to 
                determining appropriate units.
    (b) Effect of an Agreement.--
            (1) In general.--If the affected parties reach agreement on the 
        appropriate unit and the exclusive representative for such unit under 
        subsection (a), the Federal Labor Relations Authority shall certify the 
        terms of such agreement, subject to paragraph (2)(A). Nothing in this 
        subsection shall be considered to require the holding of any hearing or 
        election as a condition for certification.
            (2) Restrictions.--
                    (A) Conditions requiring noncertification.--The Federal 
                Labor Relations Authority may not certify the terms of an 
                agreement under paragraph (1) if--
                            (i) it determines that any of the criteria referred 
                        to in subsection (a)(2) (disregarding section 7112(a) of 
                        title 5, United States Code) have not been met; or
                            (ii) after the Secretary's exercise of authority and 
                        before certification under this section, a valid 
                        election under section 7111(b) of title 5, United States 
                        Code, is held covering any employees who would be 
                        included in the unit proposed for certification.
                    (B) Temporary waiver of provision that would bar an election 
                after a collective bargaining agreement is reached.--Nothing in 
                section 7111(f)(3) of title 5, United States Code, shall prevent 
                the holding of an election under section 7111(b) of such title 
                that covers employees within a unit certified under paragraph 
                (1), or giving effect to the results of such an election 
                (including a decision not to be represented by any labor 
                organization), if the election is held before the end of the 12-
                month period beginning on the date such unit is so certified.
                    (C) Clarification.--The certification of a unit under 
                paragraph (1) shall not, for purposes of the last sentence of 
                section 7111(b) of title 5, United States Code, or section 
                7111(f)(4) of such title, be treated as if it had occurred 
                pursuant to an election.
            (3) Delegation.--
                    (A) In general.--The Federal Labor Relations Authority may 
                delegate to any regional director (as referred to in section 
                7105(e) of title 5, United States Code) its authority under the 
                preceding provisions of this subsection.
                    (B) Review.--Any action taken by a regional director under 
                subparagraph (A) shall be subject to review under the provisions 
                of section 7105(f) of title 5, United States Code, in the same 
                manner as if such action had been taken under section 7105(e) of 
                such title, except that in the case of a decision not to 
                certify, such review shall be required if application therefor 
                is filed by an affected party within the time specified in such 
                provisions.
    (c) Definition.--For purposes of this section, the term ``affected party'' 
means--
            (1) with respect to an exercise of authority by the Secretary under 
        this title, any labor organization affected thereby; and
            (2) the Department of Agriculture.

SEC. 292. PURCHASE OF AMERICAN-MADE EQUIPMENT AND PRODUCTS.

    (a) Sense of Congress.--It is the sense of the Congress that, to the 
greatest extent practicable, all equipment and products purchased using funds 
made available pursuant to this title should be American-made.
    (b) Notice Requirement.--In providing financial assistance to, or entering 
into any contract with, any entity using funds made available pursuant to this 
title, the Secretary, to the greatest extent practicable, shall provide to such 
entity a notice describing the statement made in subsection (a) by the Congress.

SEC. 293. MISCELLANEOUS CONFORMING AMENDMENTS.

    (a) United States Grain Standards Act.--The United States Grain Standards 
Act (7 U.S.C. 71 et seq.) is amended--
            (1) in section 3 (7 U.S.C. 75)--
                    (A) by inserting ``and'' at the end of subsection (y);
                    (B) by striking subsections (z) and (aa); and
                    (C) by redesignating subsection (bb) as subsection (z);
            (2) by striking section 3A (7 U.S.C. 75a);
            (3) in section 5(b) (7 U.S.C. 77(b)), by striking ``Service 
        employees'' and inserting ``employees of the Secretary'';
            (4) in sections 7(j)(2) and 7A(l)(2) (7 U.S.C. 79(j)(2) and 
        79a(l)(2)), by striking ``supervision by Service personnel of its field 
        office personnel'' in the first sentence of both sections and inserting 
        ``supervision by the Secretary of the Secretary's field office 
        personnel'';
            (5) in section 12(c) (7 U.S.C. 87a(c)), by striking ``or 
        Administrator'';
            (6) in section 12(d) (7 U.S.C. 87a(d)), by striking ``or the 
        Administrator'';
            (7) except as otherwise provided in this subsection, by striking 
        ``Administrator'' each place it appears and inserting ``Secretary''; and
            (8) except as otherwise provided in this subsection, by striking 
        ``Service'' each place it appears and inserting ``Secretary''.
    (b) Packers and Stockyards Act, 1921.--Section 407 of the Packers and 
Stockyards Act, 1921 (7 U.S.C. 228), is amended--
            (1) by striking subsection (b);
            (2) by redesignating subsections (c), (d), (e), and (f), as 
        subsections (b), (c), (d), and (e), respectively; and
            (3) in subsection (e) (as so redesignated), by striking ``subsection 
        (e)'' and inserting ``subsection (d)''.

SEC. 294. REMOVAL OF OBSOLETE ADMINISTRATIVE PROVISIONS.

    Section 5316 of title 5, United States Code, is amended--
            (1) by striking ``Administrator, Agricultural Marketing Service, 
        Department of Agriculture.'';
            (2) by striking ``Administrator, Agricultural Research Service, 
        Department of Agriculture.'';
            (3) by striking ``Administrator, Agricultural Stabilization and 
        Conservation Service, Department of Agriculture.'';
            (4) by striking ``Administrator, Farmers Home Administration.'';
            (5) by striking ``Administrator, Foreign Agricultural Service, 
        Department of Agriculture.'';
            (6) by striking ``Administrator, Rural Electrification 
        Administration, Department of Agriculture.'';
            (7) by striking ``Administrator, Soil Conservation Service, 
        Department of Agriculture.'';
            (8) by striking ``Chief Forester of the Forest Service, Department 
        of Agriculture.'';
            (9) by striking ``Director of Science and Education, Department of 
        Agriculture.'';
            (10) by striking ``Administrator, Animal and Plant Health Inspection 
        Service, Department of Agriculture.''; and
            (11) by striking ``Administrator, Federal Grain Inspection Service, 
        Department of Agriculture.''.

SEC. 295. PROPOSED CONFORMING AMENDMENTS.

    Not later than 180 days after the date of the enactment of this Act, the 
Secretary shall submit to Congress recommended legislation containing additional 
technical and conforming amendments to Federal laws that are required as a 
result of the enactment of this title.

SEC. 296. TERMINATION OF AUTHORITY.

    (a) In General.--Subject to subsection (b), the authority delegated to the 
Secretary by this title to reorganize the Department shall terminate on the date 
that is 2 years after the date of enactment of this Act.
    (b) Functions.--Subsection (a) shall not affect--
            (1) the authority of the Secretary to continue to carry out a 
        function that the Secretary performs on the date that is 2 years after 
        the date of enactment of this Act;
            (2) the authority delegated to the Secretary under Reorganization 
        Plan No. 2 of 1953 (5 U.S.C. App; 7 U.S.C. 2201 note); or
            (3) the authority of an agency, office, officer, or employee of the 
        Department to continue to perform all functions delegated or assigned to 
        the entity or person as of that termination date.

                            TITLE III--MISCELLANEOUS

SEC. 301. POULTRY LABELING.

    It is the sense of Congress that--
            (1) the United States Department of Agriculture should--
                    (A) carry out the plans of the Department to hold public 
                hearings for the purpose of receiving public input on issues 
                related to the conditions under which poultry sold in the United 
                States may be labeled ``fresh''; and
                    (B) finalize and publish a decision on the issues as 
                expeditiously as possible after holding the hearings; and
            (2) no person serving on the expert advisory committee established 
        to advise the Secretary of Agriculture on the issues should stand to 
        profit, or represent any interest that would stand to profit, from the 
        decision of the Department on the issues.

SEC. 302. FIRST AMENDMENT RIGHTS OF EMPLOYEES OF THE UNITED STATES DEPARTMENT OF 
              AGRICULTURE.

    Notwithstanding any other provision of law, no employee of the United States 
Department of Agriculture shall be peremptorily removed, on or after February 
15, 1994, from the position of the employee without an opportunity for a public 
or nonpublic hearing, at the option of the employee, because of remarks made 
during personal time in opposition to policies, or proposed policies, of the 
Department, including policies or proposed policies regarding homosexuals. Any 
employee removed on or after February 15, 1994, without the opportunity for such 
a hearing shall be reinstated to the position of the employee pending such a 
hearing.

SEC. 303. ADJUSTED COST OF THRIFTY FOOD PLAN.

    (a) In General.--Section 3(o)(11) of the Food Stamp Act of 1977 (7 U.S.C. 
2012(o)(11)) is amended by inserting ``and (in the case of households residing 
in Alaska) on October 1, 1994,'' after ``1992,''.
    (b) Effective Date.--The amendment made by subsection (a) shall be effective 
beginning on September 30, 1994.

SEC. 304. OFFICE OF RISK ASSESSMENT AND COST-BENEFIT ANALYSIS.

    (a) Office of Risk Assessment and Cost-Benefit Analysis.--The Secretary of 
Agriculture shall establish in the Department of Agriculture an Office of Risk 
Assessment and Cost-Benefit Analysis, which shall be under the direction of a 
Director appointed by the Secretary.
    (b) Functions.--The Director shall ensure that any regulatory analysis that 
is conducted under this section includes a risk assessment and cost-benefit 
analysis that is performed consistently and uses reasonably obtainable and sound 
scientific, technical, economic, and other data.
            (1) In general.--Effective six months after the date of enactment of 
        this Act, the Secretary of Agriculture shall publish in the Federal 
        Register, for each proposed major regulation the primary purpose of 
        which is to regulate issues of human health, human safety, or the 
        environment that is promulgated by the Department after the enactment of 
        this Act, an analysis with as much specificity as practicable, of--
                    (A) the risk, including the effect of the risk, to human 
                health, human safety, or the environment, and any combination 
                thereof, addressed by the regulation, including, where 
                applicable and practicable, the health and safety risks to 
                persons who are disproportionately exposed or particularly 
                sensitive;
                    (B) the costs associated with the implementation of, and 
                compliance with, the regulation;
                    (C) where appropriate and meaningful, a comparison of that 
                risk relative to other similar risks regulated by the Department 
                or other Federal Agency, resulting from comparable activities 
                and exposure pathways (such comparisons should consider relevant 
                distinctions among risks, such as the voluntary or involuntary 
                nature of risks and the preventability or nonpreventability of 
                risks); and
                    (D) the quantitative and qualitative benefits of the 
                regulation, including the reduction or prevention of risk 
                expected from the regulation.
Where such a regulatory analysis is not practicable because of compelling 
circumstances, the Director shall provide an explanation in lieu of conducting 
an analysis under this section.
            (2) Evaluation.--The regulatory analysis referred to in paragraph 
        (1) should also contain a statement that the Secretary of Agriculture 
        evaluated--
                    (A) whether the regulation will advance the purpose of 
                protecting against the risk referred to in paragraph (1)(A); and
                    (B) whether the regulation will produce benefits and reduce 
                risks to human health, human safety, or the environment, and any 
                combination thereof, in a cost-effective manner as a result of 
                the implementation of and compliance with the regulation, by 
                local, State, and Federal Government and other public and 
                private entities, as estimated in paragraph (1)(B).
            (3) This section shall not be construed to amend, modify, or alter 
        any statute and shall not be subject to judicial review. This section 
        shall not be construed to grant a cause of action to any person. The 
        Secretary of Agriculture shall perform the analyses required in this 
        section in such a manner that does not delay the promulgation or 
        implementation of regulations mandated by statute or judicial order.
    (c) Definition.--As used in this section, the term ``major regulation'' 
means any regulation that the Secretary of Agriculture estimates is likely to 
have an annual impact on the economy of the United States of $100,000,000 in 
1994 dollars.

SEC. 305. FAIR AND EQUITABLE TREATMENT OF SOCIALLY DISADVANTAGED PRODUCERS.

    (a) Fair Crop Acreage Bases and Farm Program Payment Yields.--If the 
Secretary of Agriculture determines that crop acreage bases or farm program 
payment yields established for farms owned or operated by socially disadvantaged 
producers are not established in accordance with title V of the Agricultural Act 
of 1949 (7 U.S.C. 1461 et seq.), the Secretary shall adjust the bases and yields 
to conform to the requirements of such title and make available any appropriate 
commodity program benefits.
    (b) Fair Application of Consolidated Farm and Rural Development Act.--If the 
Secretary of Agriculture determines that application of the Consolidated Farm 
and Rural Development Act (7 U.S.C. 1921 et seq.) with respect to socially 
disadvantaged producers is not consistent with the requirements of such Act, the 
Secretary shall make such changes in the administration of such Act as the 
Secretary considers necessary to provide for the fair and equitable treatment of 
socially disadvantaged producers under such Act.
    (c) Report on Treatment of Socially Disadvantaged Producers.--
            (1) Report required.--The Comptroller General of the United States 
        shall prepare a report to determine--
                    (A) whether socially disadvantaged producers are 
                underrepresented on State, county, area, or local committees 
                established under section 8(b)(5) of the Soil Conservation and 
                Domestic Allotment Act (16 U.S.C. 590h(b)(5)) or local review 
                committees established under section 363 of the Agricultural 
                Adjustment Act of 1938 (7 U.S.C. 1363) because of racial, 
                ethnic, or gender prejudice; and
                    (B) if such underrepresentation exists, whether it inhibits 
                or interferes with the participation of socially disadvantaged 
                producers in programs of the Department of Agriculture.
            (2) Submission of report.--Not later than February 1, 1995, the 
        Comptroller General shall submit the report required by this subsection 
        to the Committee on Agriculture of the House of Representatives and the 
        Committee on Agriculture, Nutrition, and Forestry of the Senate.
    (d) Definition.--For purposes of this section, the term ``socially 
disadvantaged producer'' means a producer who is a member of a group whose 
members have been subjected to racial, ethnic, or gender prejudice because of 
their identity as members of a group without regard to their individual 
qualities.

SEC. 306. AVIATION INSPECTIONS.

    (a) Study Regarding Acceptance of Federal Aviation Administration Aircraft 
Inspections.--
            (1) Intent of study.--The intent of the study required by this 
        subsection is to examine the cost efficiencies of conducting inspections 
        of aircraft and pilots by one Federal agency without reducing aircraft, 
        passenger, or pilot safety standards or lowering mission preparedness.
            (2) Study required.--The Secretary of Agriculture and the Secretary 
        of Transportation shall jointly conduct a study of the inspection 
        specifications and procedures by which aircraft and pilots contracted by 
        the Department are certified to determine the cost efficiencies of 
        eliminating duplicative Department inspection requirements and 
        transferring some or all inspection requirements to the Federal Aviation 
        Administration, while ensuring that neither aircraft, passenger, nor 
        pilot safety is reduced and that mission preparedness is maintained.
            (3) Special considerations.--In conducting the study, the 
        Secretaries shall evaluate current inspection specifications and 
        procedures mandated by the Department and the Forest Service, taking 
        into consideration the unique requirements and risks of particular 
        Department and Forest Service missions that may require special 
        inspection specifications and procedures to ensure the safety of 
        Department and Forest Service personnel and their contractees.
            (4) Maintenance of standards and preparedness.--In making 
        recommendations to transfer inspection authority or otherwise change 
        Department inspection specifications and procedures, the Secretaries 
        shall ensure that the implementation of any such recommendations does 
        not lower aircraft or pilot standards or preparedness for Department or 
        Forest Service missions.
            (5) Submission of results.--Not later than 180 days after the date 
        of the enactment of this Act, the Secretaries shall submit to Congress 
        the results of the study, including any recommendations to transfer 
        inspection authority or otherwise change Department inspection 
        specifications and procedures and a cost-benefit analysis of such 
        recommendations.
    (b) Review of Recently Adopted Aircraft Policy.--
            (1) Review required.--The Secretary of Agriculture shall review the 
        policy initiated by the Secretary on July 1, 1994, to accept Federal 
        Aviation Administration inspections on aircraft and pilots that provide 
        ``airport to airport'' service for the Forest Service. The policy is 
        currently being cooperatively developed by the Department and the 
        Federal Aviation Administration and is intended to reduce duplicative 
        inspections and to reduce Government costs, while maintaining aircraft, 
        passenger, and pilot safety standards, specifications and procedures 
        currently required by the Department and the Forest Service.
            (2) Expansion of policy.--As part of the review, the Secretary of 
        Agriculture shall examine the feasibility and desirability of applying 
        this policy on a Government-wide basis.
            (3) Submission of results.--Not later than one year after the date 
        of the implementation of the policy, the Secretary of Agriculture shall 
        submit to Congress the results of the review, including any 
        recommendations that the Secretary considers appropriate.
            Attest:






                                                                          Clerk.