[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2854 Engrossed Amendment Senate (EAS)]
In the Senate of the United States,
March 12, 1996.
Resolved, That the bill from the House of Representatives (H.R.
2854) entitled ``An Act to modify the operation of certain agricultural
programs.'', do pass with the following
AMENDMENT:
Strike out all after the enacting clause and insert:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Agricultural
Reform and Improvement Act of 1996''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--AGRICULTURAL MARKET TRANSITION PROGRAM
Sec. 101. Short title.
Sec. 102. Definitions.
Sec. 103. Production flexibility contracts.
Sec. 104. Nonrecourse marketing assistance loans and loan deficiency
payments.
Sec. 105. Payment limitations.
Sec. 106. Peanut program.
Sec. 107. Sugar program.
Sec. 108. Administration.
Sec. 109. Suspension and repeal of permanent authorities.
Sec. 110. Effect of amendments.
TITLE II--AGRICULTURAL TRADE
Subtitle A--Amendments to Agricultural Trade Development and Assistance
Act of 1954 and Related Statutes
Sec. 201. Food aid to developing countries.
Sec. 202. Trade and development assistance.
Sec. 203. Agreements regarding eligible countries and private entities.
Sec. 204. Terms and conditions of sales.
Sec. 205. Use of local currency payment.
Sec. 206. Value-added foods.
Sec. 207. Eligible organizations.
Sec. 208. Generation and use of foreign currencies.
Sec. 209. General levels of assistance under Public Law 480.
Sec. 210. Food aid consultative group.
Sec. 211. Support of nongovernmental organizations.
Sec. 212. Commodity determinations.
Sec. 213. General provisions.
Sec. 214. Agreements.
Sec. 215. Use of commodity credit corporation.
Sec. 216. Administrative provisions.
Sec. 217. Expiration date.
Sec. 218. Regulations.
Sec. 219. Independent evaluation of programs.
Sec. 220. Authorization of appropriations.
Sec. 221. Coordination of foreign assistance programs.
Sec. 222. Micronutrient fortification pilot program.
Sec. 223. Use of certain local currency.
Sec. 224. Levels of assistance under farmer-to-farmer program.
Sec. 225. Food security commodity reserve.
Sec. 226. Protein byproducts derived from alcohol fuel production.
Sec. 227. Food for progress program.
Sec. 228. Use of foreign currency proceeds from export sales financing.
Sec. 229. Stimulation of foreign production.
Subtitle B--Amendments to Agricultural Trade Act of 1978
Sec. 241. Agricultural export promotion strategy.
Sec. 242. Export credits.
Sec. 243. Market promotion program.
Sec. 244. Export enhancement program.
Sec. 245. Arrival certification.
Sec. 246. Compliance.
Sec. 247. Regulations.
Sec. 248. Trade compensation and assistance programs.
Sec. 249. Foreign agricultural service.
Sec. 250. Reports.
Subtitle C--Miscellaneous
Sec. 251. Reporting requirements relating to tobacco.
Sec. 252. Triggered export enhancement.
Sec. 253. Disposition of commodities to prevent waste.
Sec. 254. Direct sales of dairy products.
Sec. 255. Export sales of dairy products.
Sec. 256. Debt-for-health-and-protection swap.
Sec. 257. Policy on expansion of international markets.
Sec. 258. Policy on maintenance and development of export markets.
Sec. 259. Policy on trade liberalization.
Sec. 260. Agricultural trade negotiations.
Sec. 261. Policy on unfair trade practices.
Sec. 262. Agricultural aid and trade missions.
Sec. 263. Annual reports by agricultural attaches.
Sec. 264. World livestock market price information.
Sec. 265. Orderly liquidation of stocks.
Sec. 266. Sales of extra long staple cotton.
Sec. 267. Regulations.
Sec. 268. Emerging markets.
Sec. 269. Import assistance for CBI beneficiary countries and the
Philippines.
Sec. 270. Studies, reports, and other provisions.
Sec. 271. Implementation of commitments under Uruguay Round Agreements.
Sec. 272. Sense of Congress concerning multilateral disciplines on
credit guarantees.
Sec. 273. Foreign market development cooperator program.
Sec. 274. Price support for rice.
TITLE III--CONSERVATION
Subtitle A--Definitions
Sec. 301. Definitions.
Subtitle B--Environmental Conservation Acreage Reserve Program
Sec. 311. Environmental conservation acreage reserve program.
Sec. 312. Conservation reserve program.
Sec. 313. Wetlands reserve program.
Sec. 314. Environmental quality incentives program.
Subtitle C--Conservation Funding
Sec. 321. Conservation funding.
Subtitle D--National Natural Resources Conservation Foundation
Sec. 331. Short title.
Sec. 332. Definitions.
Sec. 333. National Natural Resources Conservation Foundation.
Sec. 334. Composition and operation.
Sec. 335. Officers and employees.
Sec. 336. Corporate powers and obligations of the Foundation.
Sec. 337. Administrative services and support.
Sec. 338. Audits and petition of Attorney General for equitable relief.
Sec. 339. Release from liability.
Sec. 340. Authorization of appropriations.
Subtitle E--Miscellaneous
Sec. 351. Flood risk reduction.
Sec. 352. Forestry.
Sec. 353. State technical committees.
Sec. 354. Conservation of private grazing land.
Sec. 355. Conforming amendments.
Sec. 356. Water bank program.
Sec. 357. Flood water retention pilot projects.
Sec. 358. Wetland conservation exemption.
Sec. 359. Floodplain easements.
Sec. 360. Resource conservation and development program
reauthorization.
Sec. 361. Conservation reserve new acreage.
Sec. 362. Repeal of report requirement.
Sec. 363. Watershed protection and flood prevention act amendments.
Sec. 364. Abandonment of converted wetlands.
TITLE IV--NUTRITION ASSISTANCE
Sec. 401. Food stamp program.
Sec. 402. Commodity distribution program; commodity supplemental food
program.
Sec. 403. Emergency food assistance program.
Sec. 404. Soup kitchens program.
Sec. 405. National commodity processing.
TITLE V--MISCELLANEOUS
Subtitle A--General Miscellaneous Provisions
Sec. 501. Fund for dairy producers to pay for nutrient management.
Sec. 502. Crop insurance.
Sec. 503. Revenue insurance.
Sec. 504. Collection and use of agricultural quarantine and inspection
fees.
Sec. 505. Commodity Credit Corporation interest rate.
Sec. 506. Everglades Agricultural Area.
Sec. 507. Fund for Rural America.
Subtitle B--Options Pilot Programs and Risk Management Education
Sec. 511. Short title.
Sec. 512. Purpose.
Sec. 513. Pilot programs.
Sec. 514. Terms and conditions.
Sec. 515. Notice.
Sec. 516. Commodity Credit Corporation.
Sec. 517. Risk management education.
Subtitle C--Commercial Transportation of Equine for Slaughter
Sec. 521. Findings.
Sec. 522. Definitions.
Sec. 523. Standards for humane commercial transportation of equine for
slaughter.
Sec. 524. Records.
Sec. 525. Agents.
Sec. 526. Cooperative agreements.
Sec. 527. Investigations and inspections.
Sec. 528. Interference with enforcement.
Sec. 529. Jurisdiction of courts.
Sec. 530. Civil and criminal penalties.
Sec. 531. Payments for temporary or medical assistance for equine due
to violations.
Sec. 532. Relationship to State law.
Sec. 533. Authorization of appropriations.
Subtitle D--Miscellaneous
Sec. 541. Livestock dealer trust.
Sec. 542. Planting of energy crops.
Sec. 543. Reimbursable agreements.
Sec. 544. Swine health protection.
Sec. 545. Cooperative work for protection, management, and improvement
of National Forest System.
Sec. 546. Amendment of the Virus-Serum Toxin Act of 1913.
Sec. 547. Overseas tort claims.
Sec. 548. Graduate School of the United States Department of
Agriculture.
Sec. 549. Student intern subsistence program.
Sec. 550. Conveyance of land to White Oak Cemetery.
Sec. 551. Advisory board on agricultural air quality.
Sec. 552. Water systems for rural and Native villages in Alaska.
Sec. 553. Eligibility for grants to broadcasting systems.
Sec. 554. Wildlife Habitat Incentives Program.
Sec. 555. Indian reservations.
Sec. 556. ICD reimbursement for overhead expenses.
Sec. 557. Clarification of effect of resource planning on allocation or
use of water.
TITLE VI--CREDIT
Subtitle A--Agricultural Credit
chapter 1--farm ownership loans
Sec. 601. Limitation on direct farm ownership loans.
Sec. 602. Purposes of loans.
Sec. 603. Soil and water conservation and protection.
Sec. 604. Interest rate requirements.
Sec. 605. Insurance of loans.
Sec. 606. Loans guaranteed.
chapter 2--operating loans
Sec. 611. Limitation on direct operating loans.
Sec. 612. Purposes of operating loans.
Sec. 613. Participation in loans.
Sec. 614. Line-of-credit loans.
Sec. 615. Insurance of operating loans.
Sec. 616. Special assistance for beginning farmers and ranchers.
Sec. 617. Limitation on period for which borrowers are eligible for
guaranteed assistance.
chapter 3--emergency loans
Sec. 621. Hazard insurance requirement.
Sec. 622. Maximum emergency loan indebtedness.
Sec. 623. Insurance of emergency loans.
chapter 4--administrative provisions
Sec. 631. Use of collection agencies.
Sec. 632. Notice of loan service programs.
Sec. 633. Sale of property.
Sec. 634. Definitions.
Sec. 635. Authorization for loans.
Sec. 636. List of certified lenders and inventory property
demonstration project.
Sec. 637. Homestead property.
Sec. 638. Restructuring.
Sec. 639. Transfer of inventory lands.
Sec. 640. Implementation of target participation rates.
Sec. 641. Delinquent borrowers and credit study.
chapter 5--general provisions
Sec. 651. Conforming amendments.
Subtitle B--Farm Credit System
chapter 1--agricultural mortgage secondary market
Sec. 661. Definition of real estate.
Sec. 662. Definition of certified facility.
Sec. 663. Duties of Federal Agricultural Mortgage Corporation.
Sec. 664. Powers of the Corporation.
Sec. 665. Federal reserve banks as depositaries and fiscal agents.
Sec. 666. Certification of agricultural mortgage marketing facilities.
Sec. 667. Guarantee of qualified loans.
Sec. 668. Mandatory reserves and subordinated participation interests
eliminated.
Sec. 669. Standards requiring diversified pools.
Sec. 670. Small farms.
Sec. 671. Definition of an affiliate.
Sec. 672. State usury laws superseded.
Sec. 673. Extension of capital transition period.
Sec. 674. Minimum capital level.
Sec. 675. Critical capital level.
Sec. 676. Enforcement levels.
Sec. 677. Recapitalization of the Corporation.
Sec. 678. Liquidation of the Federal Agricultural Mortgage Corporation.
chapter 2--regulatory relief
Sec. 681. Compensation of association personnel.
Sec. 682. Use of private mortgage insurance.
Sec. 683. Removal of certain borrower reporting requirement.
Sec. 684. Reform of regulatory limitations on dividend, member
business, and voting practices of eligible
farmer-owned cooperatives.
Sec. 685. Removal of Federal Government certification requirement for
certain private sector financings.
Sec. 686. Borrower stock.
Sec. 687. Disclosure relating to adjustable rate loans.
Sec. 688. Borrowers' rights.
Sec. 689. Formation of administrative service entities.
Sec. 690. Joint management agreements.
Sec. 691. Dissemination of quarterly reports.
Sec. 692. Regulatory review.
Sec. 693. Examination of Farm Credit System Institutions.
Sec. 694. Conservatorships and receiverships.
Sec. 695. Farm Credit Insurance Fund operations.
Sec. 696. Examinations by the Farm Credit System Insurance Corporation.
Sec. 697. Powers with respect to troubled insured system banks.
Sec. 698. Oversight and regulatory actions by the Farm Credit System
Insurance Corporation.
Sec. 699. Farm Credit System Insurance Corporation Board of Directors.
Sec. 699A. Liability for making criminal referrals.
TITLE VII--RURAL DEVELOPMENT
Subtitle A--Amendments to the Food, Agriculture, Conservation, and
Trade Act of 1990
chapter 1--general provisions
Sec. 701. Rural investment partnerships.
Sec. 702. Water and waste facility financing.
Sec. 703. Rural wastewater circuit rider program.
Sec. 704. Telemedicine and distance learning services in rural areas.
Sec. 705. Limitation on authorization of appropriations for rural
technology grants.
Sec. 706. Monitoring the economic progress of rural America.
Sec. 707. Analysis by Office of Technology Assessment.
Sec. 708. Rural health infrastructure improvement.
Sec. 709. Census of agriculture.
chapter 2--alternative agricultural research and commercialization
Sec. 721. Definitions.
Sec. 722. Alternative Agricultural Research and Commercialization
Corporation.
Sec. 723. Board of directors, employees, and facilities.
Sec. 724. Research and development grants, contracts, and agreements.
Sec. 725. Commercialization assistance.
Sec. 726. General rules regarding the provision of assistance.
Sec. 727. Regional centers.
Sec. 728. Alternative Agricultural Research and Commercialization
Revolving Fund.
Sec. 729. Procurement preferences for products receiving corporation
assistance.
Sec. 730. Business plan and feasibility study and report.
Subtitle B--Amendments to the Consolidated Farm and Rural Development
Act
chapter 1--general provisions
Sec. 741. Water and waste facility loans and grants.
Sec. 742. Emergency community water assistance grant program for small
communities.
Sec. 743. Emergency community water assistance grant program for
smallest communities.
Sec. 744. Agricultural Credit Insurance Fund.
Sec. 745. Rural Development Insurance Fund.
Sec. 746. Insured watershed and resource conservation and development
loans.
Sec. 747. Rural industrialization assistance.
Sec. 748. Administration.
Sec. 749. Authorization of appropriations.
Sec. 750. Testimony before congressional committees.
Sec. 751. Prohibition on use of loans for certain purposes.
Sec. 752. Rural development certified lenders program.
Sec. 753. System for delivery of certain rural development programs.
Sec. 754. State rural economic development review panel.
Sec. 755. Limited transfer authority of loan amounts.
Sec. 756. Allocation and transfer of loan guarantee authority.
Sec. 757. National sheep industry improvement center.
chapter 2--rural community advancement program
Sec. 761. Rural community advancement program.
Sec. 762. Community facilities grant program.
Subtitle C--Amendments to the Rural Electrification Act of 1936
Sec. 771. Purposes; investigations and reports.
Sec. 772. Authorization of appropriations.
Sec. 773. Loans for electrical plants and transmission lines.
Sec. 774. Loans for electrical and plumbing equipment.
Sec. 775. Testimony on budget requests.
Sec. 776. Transfer of functions of administration created by executive
order.
Sec. 777. Annual report.
Sec. 778. Prohibition on restricting water and waste facility services
to electric customers.
Sec. 779. Telephone loan terms and conditions.
Sec. 780. Privatization program.
Sec. 781. Rural business incubator fund.
Subtitle D--Miscellaneous Rural Development Provisions
Sec. 791. Interest rate formula.
Sec. 792. Grants for financially stressed farmers, dislocated farmers,
and rural families.
Sec. 793. Cooperative agreements.
TITLE VIII--RESEARCH EXTENSION AND EDUCATION
Subtitle A--Amendments to National Agricultural Research, Extension,
and Teaching Policy Act of 1977 and Related Statutes
Sec. 801. Purposes of agricultural research, extension, and education.
Sec. 802. Subcommittee on Food, Agricultural, and Forestry Research.
Sec. 803. Joint Council on Food and Agricultural Sciences.
Sec. 804. National Agricultural Research, Extension, Education, and
Economics Advisory Board.
Sec. 805. Agricultural Science and Technology Review Board.
Sec. 806. Federal Advisory Committee Act exemption for Federal-State
cooperative programs.
Sec. 807. Coordination and planning of agricultural research,
extension, and education.
Sec. 808. Grants and fellowships for food and agricultural sciences
education.
Sec. 809. Grants for research on the production and marketing of
alcohols and industrial hydrocarbons from
agricultural commodities and forest
products.
Sec. 810. Policy research centers.
Sec. 811. Humannutritionintervention and health promotion research
program.
Sec. 812. Food and nutrition education program.
Sec. 813. Purposes and findings relating to animal health and disease
research.
Sec. 814. Animal Health Science Research Advisory Board.
Sec. 815. Animal health and disease continuing research.
Sec. 816. Animal health and disease national or regional research.
Sec. 817. Resident instruction program at 1890 land-grant colleges.
Sec. 818. Grant program to upgrade agricultural and food sciences
facilities at 1890 land-grant colleges.
Sec. 819. National research and training centennial centers
authorization.
Sec. 820. Grants to States for international trade development centers.
Sec. 821. Agricultural research programs.
Sec. 822. Extension education.
Sec. 823. Supplemental and alternative crops research.
Sec. 824. Aquaculture assistance programs.
Sec. 825. Rangeland research.
Sec. 826. Technical amendments.
Subtitle B--Amendments to Food, Agriculture, Conservation, and Trade
Act of 1990
Sec. 831. Water quality research, education, and coordination.
Sec. 832. Education program regarding handling of agricultural
chemicals and agricultural chemical
containers.
Sec. 833. Program administration.
Sec. 834. National genetics resources program.
Sec. 835. National agricultural weather information system.
Sec. 836. Research regarding production, preparation, processing,
handling, and storage of agricultural
products.
Sec. 837. Plant and animal pest and disease control program.
Sec. 838. Livestock product safety and inspection program.
Sec. 839. Plant genome mapping program.
Sec. 840. Specialized research programs.
Sec. 841. Agricultural telecommunications program.
Sec. 842. National centers for agricultural product quality research.
Sec. 843. Turkey research center authorization.
Sec. 844. Special grant to study constraints on agricultural trade.
Sec. 845. Pilot project to coordinate food and nutrition education
programs.
Sec. 846. Assistive technology program for farmers with disabilities.
Sec. 847. Demonstration projects.
Sec. 848. National rural information center clearinghouse.
Sec. 849. Global climate change.
Sec. 850. Technical amendments.
Subtitle C--Miscellaneous Research Provisions
Sec. 861. Critical agricultural materials research.
Sec. 862. 1994 Institutions.
Sec. 863. Smith-Lever Act funding for 1890 land-grant colleges,
including Tuskegee University and the
District of Columbia.
Sec. 864. Committee of nine.
Sec. 865. Agricultural research facilities.
Sec. 866. National competitive research initiative.
Sec. 867. Cotton crop reports.
Sec. 868. Rural development research and education.
Sec. 869. Human nutrition research.
Sec. 870. Dairy goat research program.
Sec. 871. Grants to upgrade 1890 land-grant college extension
facilities.
Sec. 872. Stuttgart National Aquaculture Research Center.
Sec. 873. National aquaculture policy, planning, and development.
Sec. 874. Expansion of authorities related to the national arboretum.
Sec. 875. Study of agricultural research service.
Sec. 876. Labeling of domestic and imported lamb and mutton.
Sec. 877. Sense of Senate.
TITLE IX--AGRICULTURAL PROMOTION
Subtitle A--Popcorn
Sec. 901. Short title.
Sec. 902. Findings and declaration of policy.
Sec. 903. Definitions.
Sec. 904. Issuance of orders.
Sec. 905. Required terms in orders.
Sec. 906. Referenda.
Sec. 907. Petition and review.
Sec. 908. Enforcement.
Sec. 909. Investigations and power to subpoena.
Sec. 910. Relation to other programs.
Sec. 911. Regulations.
Sec. 912. Authorization of appropriations.
Subtitle B--Canola and Rapeseed
Sec. 921. Short title.
Sec. 922. Findings and declaration of policy.
Sec. 923. Definitions.
Sec. 924. Issuance and amendment of orders.
Sec. 925. Required terms in orders.
Sec. 926. Assessments.
Sec. 927. Referenda.
Sec. 928. Petition and review.
Sec. 929. Enforcement.
Sec. 930. Investigations and power to subpoena.
Sec. 931. Suspension or termination of an order.
Sec. 932. Regulations.
Sec. 933. Authorization of appropriations.
Subtitle C--Kiwifruit
Sec. 941. Short title.
Sec. 942. Findings and purposes.
Sec. 943. Definitions.
Sec. 944. Issuance of orders.
Sec. 945. National Kiwifruit Board.
Sec. 946. Required terms in order.
Sec. 947. Permissive terms in order.
Sec. 948. Petition and review.
Sec. 949. Enforcement.
Sec. 950. Investigations and power to subpoena.
Sec. 951. Referenda.
Sec. 952. Suspension and termination of order by Secretary.
Sec. 953. Regulations.
Sec. 954. Authorization of appropriations.
Subtitle D--Commodity Promotion and Evaluation
Sec. 961. Commodity promotion and evaluation.
TITLE I--AGRICULTURAL MARKET TRANSITION PROGRAM
SEC. 101. SHORT TITLE.
This title may be cited as the ``Agricultural Market Transition
Act''.
SEC. 102. DEFINITIONS.
In this title:
(1) Considered planted.--The term ``considered planted''
means acreage that is considered planted under title V of the
Agricultural Act of 1949 (7 U.S.C. 1461 et seq.) (as in effect
prior to the suspension under section 110(b)(1)(J)).
(2) Contract.--The term ``contract'' means a production
flexibility contract entered into under section 103.
(3) Contract acreage.--The term ``contract acreage'' means
1 or more crop acreage bases established for contract
commodities under title V of the Agricultural Act of 1949 (as
in effect prior to the suspension under section 110(b)(1)(J))
that would have been in effect for the 1996 crop (but for the
suspension under section 110(b)(1)(J)).
(4) Contract commodity.--The term ``contract commodity''
means wheat, corn, grain sorghum, barley, oats, upland cotton,
and rice.
(5) Contract payment.--The term ``contract payment'' means
a payment made under section 103 pursuant to a contract.
(6) Corn.--The term ``corn'' means field corn.
(7) Department.--The term ``Department'' means the United
States Department of Agriculture.
(8) Farm program payment yield.--The term ``farm program
payment yield'' means the farm program payment yield
established for the 1995 crop of a contract commodity under
title V of the Agricultural Act of 1949 (as in effect prior to
the suspension under section 110(b)(1)(J)).
(9) Loan commodity.--The term ``loan commodity'' means each
contract commodity, extra long staple cotton, and oilseeds.
(10) Oilseed.--The term ``oilseed'' means a crop of
soybeans, sunflower seed, rapeseed, canola, safflower,
flaxseed, mustard seed, or, if designated by the Secretary,
other oilseeds.
(11) Person.--The term ``person'' means an individual,
partnership, firm, joint-stock company, corporation,
association, trust, estate, or State agency.
(12) Producer.--
(A) In general.--The term ``producer'' means a
person who, as owner, landlord, tenant, or
sharecropper, shares in the risk of producing a crop,
and is entitled to share in the crop available for
marketing from the farm, or would have shared had the
crop been produced.
(B) Hybrid seed.--The term ``producer'' includes a
person growing hybrid seed under contract. In
determining the interest of a grower of hybrid seed in
a crop, the Secretary shall not take into consideration
the existence of a hybrid seed contract.
(13) Program.--The term ``program'' means the agricultural
market transition program established under this title.
(14) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture.
(15) State.--The term ``State'' means each of the several
States of the United States, the District of Columbia, the
Commonwealth of Puerto Rico, and any other territory or
possession of the United States.
(16) United states.--The term ``United States'', when used
in a geographical sense, means all of the States.
SEC. 103. PRODUCTION FLEXIBILITY CONTRACTS.
(a) Contracts Authorized.--
(1) Offer and terms.--Beginning as soon as practicable
after the date of the enactment of this title, the Secretary
shall offer to enter into a contract with an eligible owner or
operator described in paragraph (2) on a farm containing
eligible farmland. Under the terms of a contract, the owner or
operator shall agree, in exchange for annual contract payments,
to comply with--
(A) the conservation plan for the farm prepared in
accordance with section 1212 of the Food Security Act
of 1985 (16 U.S.C. 3812);
(B) wetland protection requirements applicable to
the farm under subtitle C of title XII of the Act (16
U.S.C. 3821 et seq.); and
(C) the planting flexibility requirements of
subsection (j).
(2) Eligible owners and operators described.--The following
persons shall be considered to be an owner or operator eligible
to enter into a contract:
(A) An owner of eligible farmland who assumes all
of the risk of producing a crop.
(B) An owner of eligible farmland who shares in the
risk of producing a crop.
(C) An operator of eligible farmland with a share-
rent lease of the eligible farmland, regardless of the
length of the lease, if the owner enters into the same
contract.
(D) An operator of eligible farmland who cash rents
the eligible farmland under a lease expiring on or
after September 30, 2002, in which case the consent of
the owner is not required.
(E) An operator of eligible farmland who cash rents
the eligible farmland under a lease expiring before
September 30, 2002, if the owner consents to the
contract.
(F) An owner of eligible farmland who cash rents
the eligible farmland and the lease term expires before
September 30, 2002, but only if the actual operator of
the farm declines to enter into a contract. In the case
of an owner covered by this subparagraph, contract
payments shall not begin under a contract until the
fiscal year following the fiscal year in which the
lease held by the nonparticipating operator expires.
(G) An owner or operator described in a preceding
subparagraph regardless of whether the owner or
operator purchased catastrophic risk protection for a
fall-planted 1996 crop under section 508(b) of the
Federal Crop Insurance Act (7 U.S.C. 1508(b)).
(3) Tenants and sharecroppers.--In carrying out this
section, the Secretary shall provide adequate safeguards to
protect the interests of operators who are tenants and
sharecroppers.
(b) Elements.--
(1) Time for contracting.--
(A) Deadline.--Except as provided in subparagraph
(B), the Secretary may not enter into a contract after
April 15, 1996.
(B) Conservation reserve lands.--
(i) In general.--At the beginning of each
fiscal year, the Secretary shall allow an
eligible owner or operator on a farm covered by
a conservation reserve contract entered into
under section 1231 of the Food Security Act of
1985 (16 U.S.C. 3831) that terminates after the
date specified in subparagraph (A) to enter
into or expand a production flexibility
contract to cover the contract acreage of the
farm that was subject to the former
conservation reserve contract.
(ii) Amount.--Contract payments made for
contract acreage under this subparagraph shall
be made at the rate and amount applicable to
the annual contract payment level for the
applicable crop.
(2) Duration of contract.--
(A) Beginning date.--A contract shall begin with--
(i) the 1996 crop of a contract commodity;
or
(ii) in the case of acreage that was
subject to a conservation reserve contract
described in paragraph (1)(B), the date the
production flexibility contract was entered
into or expanded to cover the acreage.
(B) Ending date.--A contract shall extend through
the 2002 crop.
(3) Estimation of contract payments.--At the time the
Secretary enters into a contract, the Secretary shall provide
an estimate of the minimum contract payments anticipated to be
made during at least the first fiscal year for which contract
payments will be made.
(c) Eligible Farmland Described.--Land shall be considered to be
farmland eligible for coverage under a contract only if the land has
contract acreage attributable to the land and--
(1) for at least 1 of the 1991 through 1995 crops, at least
a portion of the land was enrolled in the acreage reduction
program authorized for a crop of a contract commodity under
section 101B, 103B, 105B, or 107B of the Agricultural Act of
1949 (as in effect prior to the amendment made by section
110(b)(2)) or was considered planted, including land on a farm
that is owned or leased by a beginning farmer (as determined by
the Secretary) that the Secretary determines is necessary to
establish a fair and equitable crop acreage base;
(2) was subject to a conservation reserve contract under
section 1231 of the Food Security Act of 1985 (16 U.S.C. 3831)
whose term expired, or was voluntarily terminated, on or after
January 1, 1995; or
(3) is released from coverage under a conservation reserve
contract by the Secretary during the period beginning on
January 1, 1995, and ending on the date specified in subsection
(b)(1)(A).
(d) Time for Payment.--
(1) In general.--An annual contract payment shall be made
not later than September 30 of each of fiscal years 1996
through 2002.
(2) Advance payments.--
(A) Fiscal year 1996.--At the option of the owner
or operator, 50 percent of the contract payment for
fiscal year 1996 shall be made not later than June 15,
1996.
(B) Subsequent fiscal years.--At the option of the
owner or operator for fiscal year 1997 and each
subsequent fiscal year, 50 percent of the annual
contract payment shall be made on December 15.
(e) Amounts Available for Contract Payments for Each Fiscal Year.--
(1) In general.--The Secretary shall, to the maximum extent
practicable, expend on a fiscal year basis the following
amounts to satisfy the obligations of the Secretary under all
contracts:
(A) For fiscal year 1996, $5,570,000,000.
(B) For fiscal year 1997, $5,385,000,000.
(C) For fiscal year 1998, $5,800,000,000.
(D) For fiscal year 1999, $5,603,000,000.
(E) For fiscal year 2000, $5,130,000,000.
(F) For fiscal year 2001, $4,130,000,000.
(G) For fiscal year 2002, $4,008,000,000.
(2) Allocation.--The amount made available for a fiscal
year under paragraph (1) shall be allocated as follows:
(A) For wheat, 26.26 percent.
(B) For corn, 46.22 percent.
(C) For grain sorghum, 5.11 percent.
(D) For barley, 2.16 percent.
(E) For oats, 0.15 percent.
(F) For upland cotton, 11.63 percent.
(G) For rice, 8.47 percent.
(3) Adjustment.--The Secretary shall adjust the amounts
allocated for each contract commodity under paragraph (2) for a
particular fiscal year by--
(A) subtracting an amount equal to the amount, if
any, necessary to satisfy payment requirements under
sections 103B, 105B, and 107B of the Agricultural Act
of 1949 (as in effect prior to the amendment made by
section 110(b)(2)) for the 1994 and 1995 crops of the
commodity;
(B) adding an amount equal to the sum of all
repayments of deficiency payments received under
section 114(a)(2) of the Agricultural Act of 1949 for
the commodity;
(C) to the maximum extent practicable, adding an
amount equal to the sum of all contract payments
withheld by the Secretary, at the request of an owner
or operator subject to a contract, as an offset against
repayments of deficiency payments otherwise required
under section 114(a)(2) of the Act (as so in effect)
for the commodity; and
(D) adding an amount equal to the sum of all
refunds of contract payments received during the
preceding fiscal year under subsection (h) for the
commodity.
(4) Additional rice allocation.--In addition to the
allocations provided under paragraphs (1), (2), and (3), the
amounts made available for rice contract payments shall be
increased by $17,000,000 for each of fiscal years 1997 through
2002.
(f) Determination of Contract Payments.--
(1) Individual payment quantity of contract commodities.--
For each contract, the payment quantity of a contract commodity
for each fiscal year shall be equal to the product of--
(A) 85 percent of the contract acreage; and
(B) the farm program payment yield.
(2) Annual payment quantity of contract commodities.--The
payment quantity of each contract commodity covered by all
contracts for each fiscal year shall equal the sum of the
amounts calculated under paragraph (1) for each individual
contract.
(3) Annual payment rate.--The payment rate for a contract
commodity for each fiscal year shall be equal to--
(A) the amount made available under subsection (e)
for the contract commodity for the fiscal year; divided
by
(B) the amount determined under paragraph (2) for
the fiscal year.
(4) Annual payment amount.--The amount to be paid under a
contract in effect for each fiscal year with respect to a
contract commodity shall be equal to the product of--
(A) the payment quantity determined under paragraph
(1) with respect to the contract; and
(B) the payment rate in effect under paragraph (3).
(5) Assignment of contract payments.--The provisions of
section 8(g) of the Soil Conservation and Domestic Allotment
Act (16 U.S.C. 590h(g)) (relating to assignment of payments)
shall apply to contract payments under this subsection. The
owner or operator making the assignment, or the assignee, shall
provide the Secretary with notice, in such manner as the
Secretary may require in the contract, of any assignment made
under this paragraph.
(6) Sharing of contract payments.--The Secretary shall
provide for the sharing of contract payments among the owners
and operators subject to the contract on a fair and equitable
basis.
(g) Payment Limitation.--The total amount of contract payments made
to a person under a contract during any fiscal year may not exceed the
payment limitations established under sections 1001 through 1001C of
the Food Security Act of 1985 (7 U.S.C. 1308 through 1308-3).
(h) Effect of Violation.--
(1) Termination of contract.--Except as provided in
paragraph (2), if an owner or operator subject to a contract
violates the conservation plan for the farm containing eligible
farmland under the contract, wetland protection requirements
applicable to the farm, or the planting flexibility
requirements of subsection (j), the Secretary shall terminate
the contract with respect to the owner or operator on each farm
in which the owner or operator has an interest. On the
termination, the owner or operator shall forfeit all rights to
receive future contract payments on each farm in which the
owner or operator has an interest and shall refund to the
Secretary all contract payments received by the owner or
operator during the period of the violation, together with
interest on the contract payments as determined by the
Secretary.
(2) Refund or adjustment.--If the Secretary determines that
a violation does not warrant termination of the contract under
paragraph (1), the Secretary may require the owner or operator
subject to the contract--
(A) to refund to the Secretary that part of the
contract payments received by the owner or operator
during the period of the violation, together with
interest on the contract payments as determined by the
Secretary; or
(B) to accept a reduction in the amount of future
contract payments that is proportionate to the severity
of the violation, as determined by the Secretary.
(3) Foreclosure.--An owner or operator subject to a
contract may not be required to make repayments to the
Secretary of amounts received under the contract if the
contract acreage has been foreclosed on and the Secretary
determines that forgiving the repayments is appropriate in
order to provide fair and equitable treatment. This paragraph
shall not void the responsibilities of such an owner or
operator under the contract if the owner or operator continues
or resumes operation, or control, of the contract acreage. On
the resumption of operation or control over the contract
acreage by the owner or operator, the provisions of the
contract in effect on the date of the foreclosure shall apply.
(4) Review.--A determination of the Secretary under this
subsection shall be considered to be an adverse decision for
purposes of the availability of administrative review of the
determination.
(i) Transfer of Interest in Lands Subject to Contract.--
(1) Effect of transfer.--Except as provided in paragraph
(2), the transfer by an owner or operator subject to a contract
of the right and interest of the owner or operator in the
contract acreage shall result in the termination of the
contract with respect to the acreage, effective on the date of
the transfer, unless the transferee of the acreage agrees with
the Secretary to assume all obligations of the contract. At the
request of the transferee, the Secretary may modify the
contract if the modifications are consistent with the
objectives of this section as determined by the Secretary.
(2) Exception.--If an owner or operator who is entitled to
a contract payment dies, becomes incompetent, or is otherwise
unable to receive the contract payment, the Secretary shall
make the payment, in accordance with regulations prescribed by
the Secretary.
(j) Planting Flexibility.--
(1) Permitted crops.--Subject to paragraph (2), any
commodity or crop may be planted on contract acreage on a farm.
(2) Limitations.--
(A) Haying and grazing.--
(i) Time limitations.--Haying and grazing
on land exceeding 15 percent of the contract
acreage on a farm as provided in clause (iii)
shall be permitted, except during any
consecutive 5-month period between April 1 and
October 31 that is determined by the State
committee established under section 8(b) of the
Soil Conservation and Domestic Allotment Act
(16 U.S.C. 590h(b)) for a State. In the case of
a natural disaster, the Secretary may permit
unlimited haying and grazing on the contract
acreage of a farm.
(ii) Contract commodities.--Contract
acreage planted to a contract commodity during
the crop year may be hayed or grazed without
limitation.
(iii) Haying and grazing limitation on
portion of contract acreage.--Unlimited haying
and grazing shall be permitted on not more than
15 percent of the contract acreage on a farm.
(B) Alfalfa.--Alfalfa may be planted for harvest
without limitation on the contract acreage on a farm,
except that each contract acre that is planted for
harvest to alfalfa in excess of 15 percent of the total
contract acreage on a farm shall be ineligible for
contract payments.
(C) Fruits and vegetables.--
(i) In general.--The planting for harvest
of fruits and vegetables shall be prohibited on
contract acreage, unless there is a history of
double cropping of a contract commodity and
fruits and vegetables.
(ii) Unrestricted vegetables.--Lentils,
mung beans, and dry peas may be planted without
limitation on contract acreage.
(k) Conservation Farm Option.--
(1) In general.--The Secretary shall offer eligible owners
and operators with contract acreage under this title on a farm
who also have entered into a conservation reserve program
contract under subchapter B of chapter 1 of subtitle D of title
XII of the Food Security Act of 1985 (7 U.S.C. 3831 et seq.),
the option of entering into a conservation farm option contract
for a period of 10 years, as an alternative to the market
transition payment contract.
(2) Terms.--Under the conservation farm option contract--
(A) the Secretary shall provide eligible owners and
operators with payments that reflect the Secretary's
estimate of the payments and benefits the eligible
owner or operator is expected to receive during the 10-
year period under--
(i) conservation cost-share programs
administered by the Secretary;
(ii) conservation reserve program rental
and cost-share payments;
(iii) market transition payments; and
(iv) loan programs for contract
commodities, oilseeds, and extra long staple
cotton; and
(B) the eligible owner and operator shall--
(i) forego eligibility to participate in
the conservation reserve program, conservation
cost-share program payments, and market
transition contracts; and
(ii) comply with a conservation plan for
the farm approved by the Secretary that is
consistent with the State conservation farm
option plan established under paragraph (3).
(3) State conservation farm option plan.--In consultation
with the State Technical Committee established under section
1261 of the Food Security Act of 1985 (16 U.S.C. 3801), the
Secretary shall establish a plan for each State that is
designed to--
(A) protect wildlife habitat;
(B) improve water quality; and
(C) reduce soil erosion.
SEC. 104. NONRECOURSE MARKETING ASSISTANCE LOANS AND LOAN DEFICIENCY
PAYMENTS.
(a) Availability of Nonrecourse Loans.--
(1) Availability.--For each of the 1996 through 2002 crops
of each loan commodity, the Secretary shall make available to
producers on a farm nonrecourse marketing assistance loans for
loan commodities produced on the farm. The loans shall be made
under terms and conditions that are prescribed by the Secretary
and at the loan rate established under subsection (b) for the
loan commodity.
(2) Eligible production.--The following production shall be
eligible for a marketing assistance loan under this section:
(A) In the case of a marketing assistance loan for
a contract commodity, any production by a producer who
has entered into a production flexibility contract.
(B) In the case of a marketing assistance loan for
extra long staple cotton and oilseeds, any production.
(b) Loan Rates.--
(1) Wheat.--
(A) Loan rate.--Subject to subparagraph (B), the
loan rate for a marketing assistance loan for wheat
shall be--
(i) not less than 85 percent of the simple
average price received by producers of wheat,
as determined by the Secretary, during the
marketing years for the immediately preceding 5
crops of wheat, excluding the year in which the
average price was the highest and the year in
which the average price was the lowest in the
period; but
(ii) not more than $2.58 per bushel.
(B) Stocks to use ratio adjustment.--If the
Secretary estimates for any marketing year that the
ratio of ending stocks of wheat to total use for the
marketing year will be--
(i) equal to or greater than 30 percent,
the Secretary may reduce the loan rate for
wheat for the corresponding crop by an amount
not to exceed 10 percent in any year;
(ii) less than 30 percent but not less than
15 percent, the Secretary may reduce the loan
rate for wheat for the corresponding crop by an
amount not to exceed 5 percent in any year; or
(iii) less than 15 percent, the Secretary
may not reduce the loan rate for wheat for the
corresponding crop.
(C) No effect on future years.--Any reduction in
the loan rate for wheat under subparagraph (B) shall
not be considered in determining the loan rate for
wheat for subsequent years.
(2) Feed grains.--
(A) Loan rate for corn.--Subject to subparagraph
(B), the loan rate for a marketing assistance loan for
corn shall be--
(i) not less than 85 percent of the simple
average price received by producers of corn, as
determined by the Secretary, during the
marketing years for the immediately preceding 5
crops of corn, excluding the year in which the
average price was the highest and the year in
which the average price was the lowest in the
period; but
(ii) not more than $1.89 per bushel.
(B) Stocks to use ratio adjustment.--If the
Secretary estimates for any marketing year that the
ratio of ending stocks of corn to total use for the
marketing year will be--
(i) equal to or greater than 25 percent,
the Secretary may reduce the loan rate for corn
for the corresponding crop by an amount not to
exceed 10 percent in any year;
(ii) less than 25 percent but not less than
12.5 percent, the Secretary may reduce the loan
rate for corn for the corresponding crop by an
amount not to exceed 5 percent in any year; or
(iii) less than 12.5 percent the Secretary
may not reduce the loan rate for corn for the
corresponding crop.
(C) No effect on future years.--Any reduction in
the loan rate for corn under subparagraph (B) shall not
be considered in determining the loan rate for corn for
subsequent years.
(D) Other feed grains.--The loan rate for a
marketing assistance loan for grain sorghum, barley,
and oats, respectively, shall be established at such
level as the Secretary determines is fair and
reasonable in relation to the rate that loans are made
available for corn, taking into consideration the
feeding value of the commodity in relation to corn.
(3) Upland cotton.--
(A) Loan rate.--Subject to subparagraph (B), the
loan rate for a marketing assistance loan for upland
cotton shall be established by the Secretary at such
loan rate, per pound, as will reflect for the base
quality of upland cotton, as determined by the
Secretary, at average locations in the United States a
rate that is not less than the smaller of--
(i) 85 percent of the average price
(weighted by market and month) of the base
quality of cotton as quoted in the designated
United States spot markets during 3 years of
the 5-year period ending July 31 in the year in
which the loan rate is announced, excluding the
year in which the average price was the highest
and the year in which the average price was the
lowest in the period; or
(ii) 90 percent of the average, for the 15-
week period beginning July 1 of the year in
which the loan rate is announced, of the 5
lowest-priced growths of the growths quoted for
Middling 1\3/32\-inch cotton C.I.F. Northern
Europe (adjusted downward by the average
difference during the period April 15 through
October 15 of the year in which the loan is
announced between the average Northern European
price quotation of such quality of cotton and
the market quotations in the designated United
States spot markets for the base quality of
upland cotton), as determined by the Secretary.
(B) Limitations.--The loan rate for a marketing
assistance loan for upland cotton shall not be less
than $0.50 per pound or more than $0.5192 per pound.
(4) Extra long staple cotton.--The loan rate for a
marketing assistance loan for extra long staple cotton shall
be--
(A) not less than 85 percent of the simple average
price received by producers of extra long staple
cotton, as determined by the Secretary, during 3 years
of the 5 previous marketing years, excluding the year
in which the average price was the highest and the year
in which the average price was the lowest in the
period; but
(B) not more than $0.7965 per pound.
(5) Rice.--The loan rate for a marketing assistance loan
for rice shall be $6.50 per hundredweight.
(6) Oilseeds.--
(A) Soybeans.--The loan rate for a marketing
assistance loan for soybeans shall be--
(i) not less than 85 percent of the simple
average price received by producers of
soybeans, as determined by the Secretary,
during the marketing years for the immediately
preceding 5 crops of soybeans, excluding the
year in which the average price was the highest
and the year in which the average price was the
lowest in the period; but
(ii) not less than $4.92 or more than $5.26
per bushel.
(B) Sunflower seed, canola, rapeseed, safflower,
mustard seed, and flaxseed.--The loan rate for a
marketing assistance loan for sunflower seed, canola,
rapeseed, safflower, mustard seed, and flaxseed,
individually, shall be--
(i) not less than 85 percent of the simple
average price received by producers of
sunflower seed, individually, as determined by
the Secretary, during the marketing years for
the immediately preceding 5 crops of sunflower
seed, individually, excluding the year in which
the average price was the highest and the year
in which the average price was the lowest in
the period; but
(ii) not less than $0.087 or more than
$0.093 per pound.
(C) Other oilseeds.--The loan rates for a marketing
assistance loan for other oilseeds shall be established
at such level as the Secretary determines is fair and
reasonable in relation to the loan rate available for
soybeans, except in no event shall the rate for the
oilseeds (other than cottonseed) be less than the rate
established for soybeans on a per-pound basis for the
same crop.
(c) Term of Loan.--In the case of each loan commodity (other than
upland cotton or extra long staple cotton), a marketing assistance loan
under subsection (a) shall have a term of 9 months beginning on the
first day of the first month after the month in which the loan is made.
A marketing assistance loan for upland cotton or extra long staple
cotton shall have a term of 10 months beginning on the first day of the
first month after the month in which the loan is made. The Secretary
may not extend the term of a marketing assistance loan for any loan
commodity.
(d) Repayment.--
(1) Repayment rates for wheat and feed grains.--The
Secretary shall permit a producer to repay a marketing
assistance loan under subsection (a) for wheat, corn, grain
sorghum, barley, and oats at a level that the Secretary
determines will--
(A) minimize potential loan forfeitures;
(B) minimize the accumulation of stocks of the
commodities by the Federal Government;
(C) minimize the cost incurred by the Federal
Government in storing the commodities; and
(D) allow the commodities produced in the United
States to be marketed freely and competitively, both
domestically and internationally.
(2) Repayment rates for upland cotton, oilseeds, and
rice.--The Secretary shall permit producers to repay a
marketing assistance loan under subsection (a) for upland
cotton, oilseeds, and rice at a level that is the lesser of--
(A) the loan rate established for upland cotton,
oilseeds, and rice, respectively, under subsection (b);
or
(B) the prevailing world market price for upland
cotton, oilseeds, and rice, respectively (adjusted to
United States quality and location), as determined by
the Secretary.
(3) Repayment rates for extra long staple cotton.--
Repayment of a marketing assistance loan for extra long staple
cotton shall be at the loan rate established for the commodity
under subsection (b), plus interest (as determined by the
Secretary).
(4) Prevailing world market price.--For purposes of
paragraph (2)(B) and subsection (f), the Secretary shall
prescribe by regulation--
(A) a formula to determine the prevailing world
market price for each loan commodity, adjusted to
United States quality and location; and
(B) a mechanism by which the Secretary shall
announce periodically the prevailing world market price
for each loan commodity.
(5) Adjustment of prevailing world market price for upland
cotton.--
(A) In general.--During the period ending July 31,
2003, the prevailing world market price for upland
cotton (adjusted to United States quality and location)
established under paragraph (4) shall be further
adjusted if--
(i) the adjusted prevailing world market
price is less than 115 percent of the loan rate
for upland cotton established under subsection
(b), as determined by the Secretary; and
(ii) the Friday through Thursday average
price quotation for the lowest-priced United
States growth as quoted for Middling (M) 1\3/
32\-inch cotton delivered C.I.F. Northern
Europe is greater than the Friday through
Thursday average price of the 5 lowest-priced
growths of upland cotton, as quoted for
Middling (M) 1\3/32\-inch cotton, delivered
C.I.F. Northern Europe (referred to in this
subsection as the ``Northern Europe price'').
(B) Further adjustment.--Except as provided in
subparagraph (C), the adjusted prevailing world market
price for upland cotton shall be further adjusted on
the basis of some or all of the following data, as
available:
(i) The United States share of world
exports.
(ii) The current level of cotton export
sales and cotton export shipments.
(iii) Other data determined by the
Secretary to be relevant in establishing an
accurate prevailing world market price for
upland cotton (adjusted to United States
quality and location).
(C) Limitation on further adjustment.--The
adjustment under subparagraph (B) may not exceed the
difference between--
(i) the Friday through Thursday average
price for the lowest-priced United States
growth as quoted for Middling 1\3/32\-inch
cotton delivered C.I.F. Northern Europe; and
(ii) the Northern Europe price.
(e) Loan Deficiency Payments.--
(1) Availability.--Except as provided in paragraph (4), the
Secretary may make loan deficiency payments available to
producers who, although eligible to obtain a marketing
assistance loan under subsection (a) with respect to a loan
commodity, agree to forgo obtaining the loan for the commodity
in return for payments under this subsection.
(2) Computation.--A loan deficiency payment under this
subsection shall be computed by multiplying--
(A) the loan payment rate determined under
paragraph (3) for the loan commodity; by
(B) the quantity of the loan commodity that the
producers on a farm are eligible to place under loan
but for which the producers forgo obtaining the loan in
return for payments under this subsection.
(3) Loan payment rate.--For purposes of this subsection,
the loan payment rate shall be the amount by which--
(A) the loan rate established under subsection (b)
for the loan commodity; exceeds
(B) the rate at which a loan for the commodity may
be repaid under subsection (d).
(4) Exception for extra long staple cotton.--This
subsection shall not apply with respect to extra long staple
cotton.
(f) Special Marketing Loan Provisions for Upland Cotton.--
(1) Cotton user marketing certificates.--
(A) Issuance.--Subject to subparagraph (D), during
the period ending July 31, 2003, the Secretary shall
issue marketing certificates or cash payments to
domestic users and exporters for documented purchases
by domestic users and sales for export by exporters
made in the week following a consecutive 4-week period
in which--
(i) the Friday through Thursday average
price quotation for the lowest-priced United
States growth, as quoted for Middling (M) 1\3/
32\-inch cotton, delivered C.I.F. Northern
Europe exceeds the Northern Europe price by
more than 1.25 cents per pound; and
(ii) the prevailing world market price for
upland cotton (adjusted to United States
quality and location) does not exceed 130
percent of the loan rate for upland cotton
established under subsection (b).
(B) Value of certificates or payments.--The value
of the marketing certificates or cash payments shall be
based on the amount of the difference (reduced by 1.25
cents per pound) in the prices during the 4th week of
the consecutive 4-week period multiplied by the
quantity of upland cotton included in the documented
sales.
(C) Administration of marketing certificates.--
(i) Redemption, marketing, or exchange.--
The Secretary shall establish procedures for
redeeming marketing certificates for cash or
marketing or exchange of the certificates for
agricultural commodities owned by the Commodity
Credit Corporation in such manner, and at such
price levels, as the Secretary determines will
best effectuate the purposes of cotton user
marketing certificates. Any price restrictions
that would otherwise apply to the disposition
of agricultural commodities by the Commodity
Credit Corporation shall not apply to the
redemption of certificates under this
paragraph.
(ii) Designation of commodities and
products.--To the extent practicable, the
Secretary shall permit owners of certificates
to designate the commodities and products,
including storage sites, the owners would
prefer to receive in exchange for certificates.
If any certificate is not presented for
redemption, marketing, or exchange within a
reasonable number of days after the issuance of
the certificate (as determined by the
Secretary), reasonable costs of storage and
other carrying charges, as determined by the
Secretary, shall be deducted from the value of
the certificate for the period beginning after
the reasonable number of days and ending with
the date of the presentation of the certificate
to the Commodity Credit Corporation.
(iii) Transfers.--Marketing certificates
issued to domestic users and exporters of
upland cotton may be transferred to other
persons in accordance with regulations issued
by the Secretary.
(D) Exception.--The Secretary shall not issue
marketing certificates or cash payments under
subparagraph (A) if, for the immediately preceding
consecutive 10-week period, the Friday through Thursday
average price quotation for the lowest priced United
States growth, as quoted for Middling (M) 1\3/32\-inch
cotton, delivered C.I.F. Northern Europe, adjusted for
the value of any certificate issued under this
paragraph, exceeds the Northern Europe price by more
than 1.25 cents per pound.
(E) Limitation on expenditures.--Total expenditures
under this paragraph shall not exceed $701,000,000
during fiscal years 1996 through 2002.
(2) Special import quota.--
(A) Establishment.--The President shall carry out
an import quota program that provides that, during the
period ending July 31, 2003, whenever the Secretary
determines and announces that for any consecutive 10-
week period, the Friday through Thursday average price
quotation for the lowest-priced United States growth,
as quoted for Middling (M) 1\3/32\-inch cotton,
delivered C.I.F. Northern Europe, adjusted for the
value of any certificates issued under paragraph (1),
exceeds the Northern Europe price by more than 1.25
cents per pound, there shall immediately be in effect a
special import quota.
(B) Quantity.--The quota shall be equal to 1 week's
consumption of upland cotton by domestic mills at the
seasonally adjusted average rate of the most recent 3
months for which data are available.
(C) Application.--The quota shall apply to upland
cotton purchased not later than 90 days after the date
of the Secretary's announcement under subparagraph (A)
and entered into the United States not later than 180
days after the date.
(D) Overlap.--A special quota period may be
established that overlaps any existing quota period if
required by subparagraph (A), except that a special
quota period may not be established under this
paragraph if a quota period has been established under
subsection (g).
(E) Preferential tariff treatment.--The quantity
under a special import quota shall be considered to be
an in-quota quantity for purposes of--
(i) section 213(d) of the Caribbean Basin
Economic Recovery Act (19 U.S.C. 2703(d));
(ii) section 204 of the Andean Trade
Preference Act (19 U.S.C. 3203);
(iii) section 503(d) of the Trade Act of
1974 (19 U.S.C. 2463(d)); and
(iv) General Note 3(a)(iv) to the
Harmonized Tariff Schedule.
(F) Definition.--In this paragraph, the term
``special import quota'' means a quantity of imports
that is not subject to the over-quota tariff rate of a
tariff-rate quota.
(g) Limited Global Import Quota for Upland Cotton.--
(1) In general.--The President shall carry out an import
quota program that provides that whenever the Secretary
determines and announces that the average price of the base
quality of upland cotton, as determined by the Secretary, in
the designated spot markets for a month exceeded 130 percent of
the average price of such quality of cotton in the markets for
the preceding 36 months, notwithstanding any other provision of
law, there shall immediately be in effect a limited global
import quota subject to the following conditions:
(A) Quantity.--The quantity of the quota shall be
equal to 21 days of domestic mill consumption of upland
cotton at the seasonally adjusted average rate of the
most recent 3 months for which data are available.
(B) Quantity if prior quota.--If a quota has been
established under this subsection during the preceding
12 months, the quantity of the quota next established
under this subsection shall be the smaller of 21 days
of domestic mill consumption calculated under
subparagraph (A) or the quantity required to increase
the supply to 130 percent of the demand.
(C) Preferential tariff treatment.--The quantity
under a limited global import quota shall be considered
to be an in-quota quantity for purposes of--
(i) section 213(d) of the Caribbean Basin
Economic Recovery Act (19 U.S.C. 2703(d));
(ii) section 204 of the Andean Trade
Preference Act (19 U.S.C. 3203);
(iii) section 503(d) of the Trade Act of
1974 (19 U.S.C. 2463(d)); and
(iv) General Note 3(a)(iv) to the
Harmonized Tariff Schedule.
(D) Definitions.--In this subsection:
(i) Supply.--The term ``supply'' means,
using the latest official data of the Bureau of
the Census, the Department of Agriculture, and
the Department of the Treasury--
(I) the carry-over of upland cotton
at the beginning of the marketing year
(adjusted to 480-pound bales) in which
the quota is established;
(II) production of the current
crop; and
(III) imports to the latest date
available during the marketing year.
(ii) Demand.--The term ``demand'' means--
(I) the average seasonally adjusted
annual rate of domestic mill
consumption in the most recent 3 months
for which data are available; and
(II) the larger of--
(aa) average exports of
upland cotton during the
preceding 6 marketing years; or
(bb) cumulative exports of
upland cotton plus outstanding
export sales for the marketing
year in which the quota is
established.
(iii) Limited global import quota.--The
term ``limited global import quota'' means a
quantity of imports that is not subject to the
over-quota tariff rate of a tariff-rate quota.
(E) Quota entry period.--When a quota is
established under this subsection, cotton may be
entered under the quota during the 90-day period
beginning on the date the quota is established by the
Secretary.
(2) No overlap.--Notwithstanding paragraph (1), a quota
period may not be established that overlaps an existing quota
period or a special quota period established under subsection
(f)(2).
(h) Source of Loans.--
(1) In general.--The Secretary shall provide the loans
authorized by this section through the Commodity Credit
Corporation and other means available to the Secretary.
(2) Processors.--Whenever any loan or surplus removal
operation for any agricultural commodity is carried out through
purchases from or loans or payments to processors, the
Secretary shall, to the extent practicable, obtain from the
processors such assurances as the Secretary considers adequate
that the producers of the commodity have received or will
receive maximum benefits from the loan or surplus removal
operation.
(i) Adjustments of Loans.--
(1) In general.--The Secretary may make appropriate
adjustments in the loan levels for any commodity for
differences in grade, type, quality, location, and other
factors.
(2) Loan level.--The adjustments shall, to the maximum
extent practicable, be made in such manner that the average
loan level for the commodity will, on the basis of the
anticipated incidence of the factors, be equal to the level of
support determined as provided in this section.
(j) Personal Liability of Producers for Deficiencies.--
(1) In general.--Except as provided in paragraph (2), no
producer shall be personally liable for any deficiency arising
from the sale of the collateral securing any nonrecourse loan
made under this section unless the loan was obtained through a
fraudulent representation by the producer.
(2) Limitations.--Paragraph (1) shall not prevent the
Commodity Credit Corporation or the Secretary from requiring a
producer to assume liability for--
(A) a deficiency in the grade, quality, or quantity
of a commodity stored on a farm or delivered by the
producer;
(B) a failure to properly care for and preserve a
commodity; or
(C) a failure or refusal to deliver a commodity in
accordance with a program established under this
section.
(3) Acquisition of collateral.--The Secretary may include
in a contract for a nonrecourse loan made under this section a
provision that permits the Commodity Credit Corporation, on and
after the maturity of the loan or any extension of the loan, to
acquire title to the unredeemed collateral without obligation
to pay for any market value that the collateral may have in
excess of the loan indebtedness.
(4) Sugarcane and sugar beets.--A security interest
obtained by the Commodity Credit Corporation as a result of the
execution of a security agreement by the processor of sugarcane
or sugar beets shall be superior to all statutory and common
law liens on raw cane sugar and refined beet sugar in favor of
the producers of sugarcane and sugar beets and all prior
recorded and unrecorded liens on the crops of sugarcane and
sugar beets from which the sugar was derived.
(k) Commodity Credit Corporation Sales Price Restrictions.--
(1) In general.--The Commodity Credit Corporation may sell
any commodity owned or controlled by the Corporation at any
price that the Secretary determines will maximize returns to
the Corporation.
(2) Nonapplication of sales price restrictions.--Paragraph
(1) shall not apply to--
(A) a sale for a new or byproduct use;
(B) a sale of peanuts or oilseeds for the
extraction of oil;
(C) a sale for seed or feed if the sale will not
substantially impair any loan program;
(D) a sale of a commodity that has substantially
deteriorated in quality or as to which there is a
danger of loss or waste through deterioration or
spoilage;
(E) a sale for the purpose of establishing a claim
arising out of a contract or against a person who has
committed fraud, misrepresentation, or other wrongful
act with respect to the commodity;
(F) a sale for export, as determined by the
Corporation; and
(G) a sale for other than a primary use.
(3) Presidential disaster areas.--
(A) In general.--Notwithstanding paragraph (1), on
such terms and conditions as the Secretary may consider
in the public interest, the Corporation may make
available any commodity or product owned or controlled
by the Corporation for use in relieving distress--
(i) in any area in the United States
(including the Virgin Islands) declared by the
President to be an acute distress area because
of unemployment or other economic cause, if the
President finds that the use will not displace
or interfere with normal marketing of
agricultural commodities; and
(ii) in connection with any major disaster
determined by the President to warrant
assistance by the Federal Government under the
Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5121 et
seq.).
(B) Costs.--Except on a reimbursable basis, the
Corporation shall not bear any costs in connection with
making a commodity available under subparagraph (A)
beyond the cost of the commodity to the Corporation
incurred in--
(i) the storage of the commodity; and
(ii) the handling and transportation costs
in making delivery of the commodity to
designated agencies at 1 or more central
locations in each State or other area.
(4) Efficient operations.--Paragraph (1) shall not apply to
the sale of a commodity the disposition of which is desirable
in the interest of the effective and efficient conduct of the
operations of the Corporation because of the small quantity of
the commodity involved, or because of the age, location, or
questionable continued storability of the commodity.
SEC. 105. PAYMENT LIMITATIONS.
(a) In General.--Section 1001 of the Food Security Act of 1985 (7
U.S.C. 1308) is amended by striking paragraphs (1) through (4) and
inserting the following:
``(1) Limitation on payments under production flexibility
contracts.--The total amount of contract payments made under
section 103 of the Agricultural Market Transition Act to a
person under 1 or more production flexibility contracts during
any fiscal year may not exceed $40,000.
``(2) Limitation on marketing loan gains and loan
deficiency payments.--
``(A) Limitation.--The total amount of payments
specified in subparagraph (B) that a person shall be
entitled to receive under section 104 of the
Agricultural Market Transition Act for contract
commodities and oilseeds during any crop year may not
exceed $75,000.
``(B) Description of payments.--The payments
referred to in subparagraph (A) are the following:
``(i) Any gain realized by a producer from
repaying a marketing assistance loan for a crop
of any loan commodity at a lower level than the
original loan rate established for the
commodity under section 104(b) of the Act.
``(ii) Any loan deficiency payment received
for a loan commodity under section 104(e) of
the Act.''.
(b) Conforming Amendments.--
(1) Section 1001 of the Food Security Act of 1985 (7 U.S.C.
1308) (as amended by subsection (a)) is amended--
(A) by redesignating paragraphs (5), (6), and (7)
as paragraphs (3), (4), and (5), respectively; and
(B) in the second sentence of paragraph (3)(A) (as
so redesignated), by striking ``paragraphs (6) and
(7)'' and inserting ``paragraphs (4) and (5)''.
(2) Section 1305(d) of the Agricultural Reconciliation Act
of 1987 (Public Law 100-203; 7 U.S.C. 1308 note) is amended by
striking ``paragraphs (5) through (7) of section 1001, as
amended by this subtitle,'' and inserting ``paragraphs (3)
through (5) of section 1001,''.
(3) Section 1001A of the Food Security Act of 1985 (7
U.S.C. 1308-1(a)(1)) is amended--
(A) in the first sentence of subsection (a)(1)--
(i) by striking ``section 1001(5)(B)(i)''
and inserting ``section 1001(3)(B)(i)'';
(ii) by striking ``under the Agricultural
Act of 1949 (7 U.S.C. 1421 et seq.)''; and
(iii) by striking ``section
1001(5)(B)(i)(II)'' and inserting ``section
1001(3)(B)(i)(II)''; and
(B) in subsection (b)--
(i) in paragraph (1)--
(I) by striking ``under the
Agricultural Act of 1949''; and
(II) by striking ``section
1001(5)(B)(i)'' and inserting ``section
1001(3)(B)(i)''; and
(ii) in paragraph (2)(B), by striking
``section 1001(5)(B)(i)(II)'' and inserting
``section 1001(3)(B)(i)(II)''.
(4) Section 1001C(a) of the Food Security Act of 1985 (7
U.S.C. 1308-3(a)) is amended--
(A) by striking ``For each of the 1991 through 1997
crops, any'' and inserting ``Any'';
(B) by striking ``price support program loans,
payments, or benefits made available under the
Agricultural Act of 1949 (7 U.S.C. 1421 et seq.),'' and
inserting ``loans or payments made available under the
Agricultural Market Transition Act''; and
(C) by striking ``during the 1989 through 1997 crop
years''.
SEC. 106. PEANUT PROGRAM.
(a) Quota Peanuts.--
(1) Availability of loans.--The Secretary shall make
nonrecourse loans available to producers of quota peanuts.
(2) Loan rate.--The national average quota loan rate for
quota peanuts shall be $610 per ton.
(3) Inspection, handling, or storage.--The loan amount may
not be reduced by the Secretary by any deductions for
inspection, handling, or storage.
(4) Location and other factors.--The Secretary may make
adjustments in the loan rate for quota peanuts for location of
peanuts and such other factors as are authorized by section
104(i)(1).
(b) Additional Peanuts.--
(1) In general.--The Secretary shall make nonrecourse loans
available to producers of additional peanuts at such rates as
the Secretary finds appropriate, taking into consideration the
demand for peanut oil and peanut meal, expected prices of other
vegetable oils and protein meals, and the demand for peanuts in
foreign markets.
(2) Announcement.--The Secretary shall announce the loan
rate for additional peanuts of each crop not later than
February 15 preceding the marketing year for the crop for which
the loan rate is being determined.
(c) Area Marketing Associations.--
(1) Warehouse storage loans.--
(A) In general.--In carrying out subsections (a)
and (b), the Secretary shall make warehouse storage
loans available in each of the producing areas
(described in section 1446.95 of title 7 of the Code of
Federal Regulations (January 1, 1989)) to a designated
area marketing association of peanut producers that is
selected and approved by the Secretary and that is
operated primarily for the purpose of conducting the
loan activities. The Secretary may not make warehouse
storage loans available to any cooperative that is
engaged in operations or activities concerning peanuts
other than those operations and activities specified in
this section and section 358e of the Agricultural
Adjustment Act of 1938 (7 U.S.C. 1359a).
(B) Administrative and supervisory activities.--An
area marketing association shall be used in
administrative and supervisory activities relating to
loans and marketing activities under this section and
section 358e of the Agricultural Adjustment Act of 1938
(7 U.S.C. 1359a).
(C) Association costs.--Loans made to the
association under this paragraph shall include such
costs as the area marketing association reasonably may
incur in carrying out the responsibilities, operations,
and activities of the association under this section
and section 358e of the Agricultural Adjustment Act of
1938 (7 U.S.C. 1359a).
(2) Pools for quota and additional peanuts.--
(A) In general.--The Secretary shall require that
each area marketing association establish pools and
maintain complete and accurate records by area and
segregation for quota peanuts handled under loan and
for additional peanuts placed under loan, except that
separate pools shall be established for Valencia
peanuts produced in New Mexico.
(B) Eligibility to participate.--
(i) In general.--Except as provided in
clause (ii), in the case of the 1996 and
subsequent crops, Valencia peanuts not
physically produced in the State of New Mexico
shall not be eligible to participate in the
pools of the State.
(ii) Exception.--A resident of the State of
New Mexico may enter Valencia peanuts that are
produced outside of the State into the pools of
the State in a quantity that is not greater
than the 1995 crop of the resident that was
produced outside the State.
(C) Types of peantus.--Bright hull and dark hull
Valencia peanuts shall be considered as separate types
for the purpose of establishing the pools.
(D) Net gains.--Net gains on peanuts in each pool,
unless otherwise approved by the Secretary, shall be
distributed only to producers who placed peanuts in the
pool and shall be distributed in proportion to the
value of the peanuts placed in the pool by each
producer. Net gains for peanuts in each pool shall
consist of the following:
(i) Quota peanuts.--For quota peanuts, the
net gains over and above the loan indebtedness
and other costs or losses incurred on peanuts
placed in the pool.
(ii) Additional peanuts.--For additional
peanuts, the net gains over and above the loan
indebtedness and other costs or losses incurred
on peanuts placed in the pool for additional
peanuts.
(d) Losses.--Losses in quota area pools shall be covered using the
following sources in the following order of priority:
(1) Transfers from additional loan pools.--The proceeds due
any producer from any pool shall be reduced by the amount of
any loss that is incurred with respect to peanuts transferred
from an additional loan pool to a quota loan pool by the
producer under section 358-1(b)(8) of the Agricultural
Adjustment Act of 1938 (7 U.S.C. 1358-1(b)(8)).
(2) Other producers in same pool.--Further losses in an
area quota pool shall be offset by reducing the gain of any
producer in the pool by the amount of pool gains attributed to
the same producer from the sale of additional peanuts for
domestic and export edible use.
(3) Offset within area.--Further losses in an area quota
pool shall be offset by any gains or profits from additional
peanuts (other than separate type pools established under
subsection (c)(2)(A) for Valencia peanuts produced in New
Mexico) owned or controlled by the Commodity Credit Corporation
in that area and sold for domestic edible use, in accordance
with regulations issued by the Secretary.
(4) Use of marketing assessments.--The Secretary shall use
funds collected under subsection (g) (except funds attributable
to handlers) to offset further losses in area quota pools. The
Secretary shall transfer to the Treasury those funds collected
under subsection (g) and available for use under this
subsection that the Secretary determines are not required to
cover losses in area quota pools.
(5) Cross compliance.--Further losses in area quota pools,
other than losses incurred as a result of transfers from
additional loan pools to quota loan pools under section 358-
1(b)(8) of the Agricultural Adjustment Act of 1938 (7 U.S.C.
1358-1(b)(8)), shall be offset by any gains or profits from
quota pools in other production areas (other than separate type
pools established under subsection (c)(2)(A) for Valencia
peanuts produced in New Mexico) in such manner as the Secretary
shall by regulation prescribe.
(6) Offset generally.--If losses in an area quota pool have
not been entirely offset under paragraph (3), further losses
shall be offset by any gains or profits from additional peanuts
(other than separate type pools established under subsection
(c)(2)(A) for Valencia peanuts produced in New Mexico) owned or
controlled by the Commodity Credit Corporation and sold for
domestic edible use, in accordance with regulations issued by
the Secretary.
(7) Increased assessments.--If use of the authorities
provided in the preceding paragraphs is not sufficient to cover
losses in an area quota pool, the Secretary shall increase the
marketing assessment established under subsection (g) by such
an amount as the Secretary considers necessary to cover the
losses. The increased assessment shall apply only to quota
peanuts in the production area covered by the pool. Amounts
collected under subsection (g) as a result of the increased
assessment shall be retained by the Secretary to cover losses
in that pool.
(e) Disapproval of Quotas.--Notwithstanding any other provision of
law, no loan for quota peanuts may be made available by the Secretary
for any crop of peanuts with respect to which poundage quotas have been
disapproved by producers, as provided for in section 358-1(d) of the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1358-1(d)).
(f) Quality Improvement.--
(1) In general.--With respect to peanuts under loan, the
Secretary shall--
(A) promote the crushing of peanuts at a greater
risk of deterioration before peanuts of a lesser risk
of deterioration;
(B) ensure that all Commodity Credit Corporation
inventories of peanuts sold for domestic edible use
must be shown to have been officially inspected by
licensed Department inspectors both as farmer stock and
shelled or cleaned in-shell peanuts;
(C) continue to endeavor to operate the peanut
program so as to improve the quality of domestic
peanuts and ensure the coordination of activities under
the Peanut Administrative Committee established under
Marketing Agreement No. 146, regulating the quality of
domestically produced peanuts (under the Agricultural
Adjustment Act (7 U.S.C. 601 et seq.), reenacted with
amendments by the Agricultural Marketing Agreement Act
of 1937); and
(D) ensure that any changes made in the peanut
program as a result of this subsection requiring
additional production or handling at the farm level
shall be reflected as an upward adjustment in the
Department loan schedule.
(2) Exports and other peanuts.--The Secretary shall require
that all peanuts in the domestic and export markets fully
comply with all quality standards under Marketing Agreement No.
146.
(g) Marketing Assessment.--
(1) In general.--The Secretary shall provide for a
nonrefundable marketing assessment. The assessment shall be
made on a per pound basis in an amount equal to 1.1 percent for
each of the 1994 and 1995 crops, 1.15 percent for the 1996
crop, and 1.2 percent for each of the 1997 through 2002 crops,
of the national average quota or additional peanut loan rate
for the applicable crop.
(2) First purchasers.--
(A) In general.--Except as provided under
paragraphs (3) and (4), the first purchaser of peanuts
shall--
(i) collect from the producer a marketing
assessment equal to the quantity of peanuts
acquired multiplied by--
(I) in the case of each of the 1994
and 1995 crops, .55 percent of the
applicable national average loan rate;
(II) in the case of the 1996 crop,
.6 percent of the applicable national
average loan rate; and
(III) in the case of each of the
1997 through 2002 crops, .65 percent of
the applicable national average loan
rate;
(ii) pay, in addition to the amount
collected under clause (i), a marketing
assessment in an amount equal to the quantity
of peanuts acquired multiplied by .55 percent
of the applicable national average loan rate;
and
(iii) remit the amounts required under
clauses (i) and (ii) to the Commodity Credit
Corporation in a manner specified by the
Secretary.
(B) Definition of first purchaser.--In this
subsection, the term ``first purchaser'' means a person
acquiring peanuts from a producer except that in the
case of peanuts forfeited by a producer to the
Commodity Credit Corporation, the term means the person
acquiring the peanuts from the Commodity Credit
Corporation.
(3) Other private marketings.--In the case of a private
marketing by a producer directly to a consumer through a retail
or wholesale outlet or in the case of a marketing by the
producer outside of the continental United States, the producer
shall be responsible for the full amount of the assessment and
shall remit the assessment by such time as is specified by the
Secretary.
(4) Loan peanuts.--In the case of peanuts that are pledged
as collateral for a loan made under this section, \1/2\ of the
assessment shall be deducted from the proceeds of the loan. The
remainder of the assessment shall be paid by the first
purchaser of the peanuts. For purposes of computing net gains
on peanuts under this section, the reduction in loan proceeds
shall be treated as having been paid to the producer.
(5) Penalties.--If any person fails to collect or remit the
reduction required by this subsection or fails to comply with
the requirements for recordkeeping or otherwise as are required
by the Secretary to carry out this subsection, the person shall
be liable to the Secretary for a civil penalty up to an amount
determined by multiplying--
(A) the quantity of peanuts involved in the
violation; by
(B) the national average quota peanut rate for the
applicable crop year.
(6) Enforcement.--The Secretary may enforce this subsection
in the courts of the United States.
(h) Crops.--Subsections (a) through (f) shall be effective only for
the 1996 through 2002 crops of peanuts.
(i) Marketing Quotas.--
(1) In general.--Part VI of subtitle B of title III of the
Agricultural Adjustment Act of 1938 is amended--
(A) in section 358-1 (7 U.S.C. 1358-1)--
(i) in the section heading, by striking
``1991 through 1997 crops of'';
(ii) in subsections (a)(1), (b)(1)(B),
(b)(2)(A), (b)(2)(C), and (b)(3)(A), by
striking ``of the 1991 through 1997 marketing
years'' each place it appears and inserting
``marketing year'';
(iii) in subsection (a)(3), by striking
``1990'' and inserting ``1990, for the 1991
through 1995 marketing years, and 1995, for the
1996 through 2002 marketing years'';
(iv) in subsection (b)(1)(A)--
(I) by striking ``each of the 1991
through 1997 marketing years'' and
inserting ``each marketing year''; and
(II) in clause (i), by inserting
before the semicolon the following: ``,
in the case of the 1991 through 1995
marketing years, and the 1995 marketing
year, in the case of the 1996 through
2002 marketing years'';
(v) in subsection (b)(1), by adding at the
end the following:
``(D) Certain farms ineligible for quota.--
Effective beginning with the 1997 marketing year, the
Secretary shall not establish a farm poundage quota
under subparagraph (A) for a farm owned or controlled
by--
``(i) a municipality, airport authority,
school, college, refuge, or other public entity
(other than a university used for research
purposes); or
``(ii) a person who is not a producer and
resides in another State.'';
(vi) in subsection (b)(2), by adding at the
end the following:
``(E) Transfer of quota from ineligible farms.--Any
farm poundage quota held at the end of the 1996
marketing year by a farm described in paragraph (1)(D)
shall be allocated to other farms in the same State on
such basis as the Secretary may by regulation
prescribe.''; and
(vii) in subsection (f), by striking
``1997'' and inserting ``2002'';
(B) in section 358b (7 U.S.C. 1358b)--
(i) in the section heading, by striking
``1991 through 1995 crops of''; and
(ii) in subsection (c), by striking
``1995'' and inserting ``2002'';
(C) in section 358c(d) (7 U.S.C. 1358c(d)), by
striking ``1995'' and inserting ``2002''; and
(D) in section 358e (7 U.S.C. 1359a)--
(i) in the section heading, by striking
``for 1991 through 1997 crops of peanuts''; and
(ii) in subsection (i), by striking
``1997'' and inserting ``2002''.
(2) Elimination of quota floor.--Section 358-1(a)(1) of the
Act (7 U.S.C. 1358-1(a)(1)) is amended by striking the second
sentence.
(3) Temporary quota allocation.--Section 358-1 of the Act
(7 U.S.C. 1358-1) is amended--
(A) in subsection (a)(1), by striking ``domestic
edible, seed,'' and inserting ``domestic edible use'';
(B) in subsection (b)(2)--
(i) in subparagraph (A), by striking
``subparagraph (B) and subject to''; and
(ii) by striking subparagraph (B) and
inserting the following:
``(B) Temporary quota allocation.--
``(i) Allocation related to seed peanuts.--
Temporary allocation of quota pounds for the
marketing year only in which the crop is
planted shall be made to producers for each of
the 1996 through 2002 marketing years as
provided in this subparagraph.
``(ii) Quantity.--The temporary quota
allocation shall be equal to the pounds of seed
peanuts planted on the farm, as may be adjusted
under regulations prescribed by the Secretary.
``(iii) Additional quota.--The temporary
allocation of quota pounds under this paragraph
shall be in addition to the farm poundage quota
otherwise established under this subsection and
shall be credited, for the applicable marketing
year only, in total to the producer of the
peanuts on the farm in a manner prescribed by
the Secretary.
``(iv) Effect of other requirements.--
Nothing in this section alters or changes the
requirements regarding the use of quota and
additional peanuts established by section
358e(b).''; and
(C) in subsection (e)(3), strike ``and seed and use
on a farm''.
(4) Undermarketings.--Part VI of subtitle B of title III of
the Act is amended--
(A) in section 358-1(b) (7 U.S.C. 1358-1(b))--
(i) in paragraph (1)(B), by striking
``including--'' and clauses (i) and (ii) and
inserting ``including any increases resulting
from the allocation of quotas voluntarily
released for 1 year under paragraph (7).'';
(ii) in paragraph (3)(B), by striking
``include--'' and clauses (i) and (ii) and
inserting ``include any increase resulting from
the allocation of quotas voluntarily released
for 1 year under paragraph (7).''; and
(iii) by striking paragraphs (8) and (9);
and
(B) in section 358b(a) (7 U.S.C. 1358b(a))--
(i) in paragraph (1), by striking
``(including any applicable under marketings)''
both places it appears;
(ii) in paragraph (1)(A), by striking ``of
undermarketings and'';
(iii) in paragraph (2), by striking
``(including any applicable under
marketings)''; and
(iv) in paragraph (3), by striking
``(including any applicable undermarketings)''.
(5) Disaster transfers.--Section 358-1(b) of the Act (7
U.S.C. 1358-1(b)), as amended by paragraph (4)(A)(iii), is
further amended by adding at the end the following:
``(8) Disaster transfers.--
``(A) In general.--Except as provided in
subparagraph (B), additional peanuts produced on a farm
from which the quota poundage was not harvested and
marketed because of drought, flood, or any other
natural disaster, or any other condition beyond the
control of the producer, may be transferred to the
quota loan pool for pricing purposes on such basis as
the Secretary shall by regulation provide.
``(B) Limitation.--The poundage of peanuts
transferred under subparagraph (A) shall not exceed the
difference between--
``(i) the total quantity of peanuts meeting
quality requirements for domestic edible use,
as determined by the Secretary, marketed from
the farm; and
``(ii) the total farm poundage quota,
excluding quota pounds transferred to the farm
in the fall.
``(C) Support rate.--Peanuts transferred under this
paragraph shall be supported at not more than 70
percent of the quota support rate for the marketing
years in which the transfers occur. The transfers for a
farm shall not exceed 25 percent of the total farm
quota pounds, excluding pounds transferred in the
fall.''.
SEC. 107. SUGAR PROGRAM.
(a) Sugarcane.--The Secretary shall make loans available to
processors of domestically grown sugarcane at a rate equal to 18 cents
per pound for raw cane sugar.
(b) Sugar Beets.--The Secretary shall make loans available to
processors of domestically grown sugar beets at a rate equal to 22.9
cents per pound for refined beet sugar.
(c) Term of Loans.--
(1) In general.--Loans under this section during any fiscal
year shall be made available not earlier than the beginning of
the fiscal year and shall mature at the earlier of--
(A) the end of 9 months; or
(B) the end of the fiscal year.
(2) Supplemental loans.--In the case of loans made under
this section in the last 3 months of a fiscal year, the
processor may repledge the sugar as collateral for a second
loan in the subsequent fiscal year, except that the second loan
shall--
(A) be made at the loan rate in effect at the time
the second loan is made; and
(B) mature in 9 months less the quantity of time
that the first loan was in effect.
(d) Loan Type; Processor Assurances.--
(1) Recourse loans.--Subject to paragraph (2), the
Secretary shall carry out this section through the use of
recourse loans.
(2) Nonrecourse loans.--During any fiscal year in which the
tariff rate quota for imports of sugar into the United States
is established at, or is increased to, a level in excess of
1,500,000 short tons raw value, the Secretary shall carry out
this section by making available nonrecourse loans. Any
recourse loan previously made available by the Secretary under
this section during the fiscal year shall be changed by the
Secretary into a nonrecourse loan.
(3) Processor assurances.--If the Secretary is required
under paragraph (2) to make nonrecourse loans available during
a fiscal year or to change recourse loans into nonrecourse
loans, the Secretary shall obtain from each processor that
receives a loan under this section such assurances as the
Secretary considers adequate to ensure that the processor will
provide payments to producers that are proportional to the
value of the loan received by the processor for sugar beets and
sugarcane delivered by producers served by the processor. The
Secretary may establish appropriate minimum payments for
purposes of this paragraph.
(e) Marketing Assessment.--
(1) Sugarcane.--Effective for marketings of raw cane sugar
during the 1996 through 2003 fiscal years, the first processor
of sugarcane shall remit to the Commodity Credit Corporation a
nonrefundable marketing assessment in an amount equal to--
(A) in the case of marketings during fiscal year
1996, 1.1 percent of the loan rate established under
subsection (a) per pound of raw cane sugar, processed
by the processor from domestically produced sugarcane
or sugarcane molasses, that has been marketed
(including the transfer or delivery of the sugar to a
refinery for further processing or marketing); and
(B) in the case of marketings during each of fiscal
years 1997 through 2003, 1.375 percent of the loan rate
established under subsection (a) per pound of raw cane
sugar, processed by the processor from domestically
produced sugarcane or sugarcane molasses, that has been
marketed (including the transfer or delivery of the
sugar to a refinery for further processing or
marketing).
(2) Sugar beets.--Effective for marketings of beet sugar
during the 1996 through 2003 fiscal years, the first processor
of sugar beets shall remit to the Commodity Credit Corporation
a nonrefundable marketing assessment in an amount equal to--
(A) in the case of marketings during fiscal year
1996, 1.1794 percent of the loan rate established under
subsection (a) per pound of beet sugar, processed by
the processor from domestically produced sugar beets or
sugar beet molasses, that has been marketed; and
(B) in the case of marketings during each of fiscal
years 1997 through 2003, 1.47425 percent of the loan
rate established under subsection (a) per pound of beet
sugar, processed by the processor from domestically
produced sugar beets or sugar beet molasses, that has
been marketed.
(3) Collection.--
(A) Timing.--A marketing assessment required under
this subsection shall be collected on a monthly basis
and shall be remitted to the Commodity Credit
Corporation not later than 30 days after the end of
each month. Any cane sugar or beet sugar processed
during a fiscal year that has not been marketed by
September 30 of the year shall be subject to assessment
on that date. The sugar shall not be subject to a
second assessment at the time that it is marketed.
(B) Manner.--Subject to subparagraph (A), marketing
assessments shall be collected under this subsection in
the manner prescribed by the Secretary and shall be
nonrefundable.
(4) Penalties.--If any person fails to remit the assessment
required by this subsection or fails to comply with such
requirements for recordkeeping or otherwise as are required by
the Secretary to carry out this subsection, the person shall be
liable to the Secretary for a civil penalty up to an amount
determined by multiplying--
(A) the quantity of cane sugar or beet sugar
involved in the violation; by
(B) the loan rate for the applicable crop of
sugarcane or sugar beets.
(5) Enforcement.--The Secretary may enforce this subsection
in a court of the United States.
(f) Forfeiture Penalty.--
(1) In general.--A penalty shall be assessed on the
forfeiture of any sugar pledged as collateral for a nonrecourse
loan under this section.
(2) Cane sugar.--The penalty for cane sugar shall be 1 cent
per pound.
(3) Beet sugar.--The penalty for beet sugar shall bear the
same relation to the penalty for cane sugar as the marketing
assessment for sugar beets bears to the marketing assessment
for sugarcane.
(4) Effect of forfeiture.--Any payments owed producers by a
processor that forfeits of any sugar pledged as collateral for
a nonrecourse loan shall be reduced in proportion to the loan
forfeiture penalty incurred by the processor.
(g) Information Reporting.--
(1) Duty of processors and refiners to report.--A sugarcane
processor, cane sugar refiner, and sugar beet processor shall
furnish the Secretary, on a monthly basis, such information as
the Secretary may require to administer sugar programs,
including the quantity of purchases of sugarcane, sugar beets,
and sugar, and production, importation, distribution, and stock
levels of sugar.
(2) Penalty.--Any person willfully failing or refusing to
furnish the information, or furnishing willfully any false
information, shall be subject to a civil penalty of not more
than $10,000 for each such violation.
(3) Monthly reports.--Taking into consideration the
information received under paragraph (1), the Secretary shall
publish on a monthly basis composite data on production,
imports, distribution, and stock levels of sugar.
(h) Crops.--This section shall be effective only for the 1996
through 2002 crops of sugar beets and sugarcane.
SEC. 108. ADMINISTRATION.
(a) Commodity Credit Corporation.--
(1) Use of corporation.--The Secretary shall carry out this
title through the Commodity Credit Corporation.
(2) Salaries and expenses.--No funds of the Corporation
shall be used for any salary or expense of any officer or
employee of the Department of Agriculture.
(b) Determinations by Secretary.--A determination made by the
Secretary under this title or the Agricultural Adjustment Act of 1938
(7 U.S.C. 1281 et seq.) shall be final and conclusive.
(c) Regulations.--The Secretary may issue such regulations as the
Secretary determines necessary to carry out this title.
SEC. 109. SUSPENSION AND REPEAL OF PERMANENT AUTHORITIES.
(a) Agricultural Adjustment Act of 1938.--
(1) In general.--The following provisions of the
Agricultural Adjustment Act of 1938 shall not be applicable to
the 1996 through 2002 crops:
(A) Parts II through V of subtitle B of title III
(7 U.S.C. 1326-1351).
(B) Subsections (a) through (j) of section 358 (7
U.S.C. 1358).
(C) Subsections (a) through (h) of section 358a (7
U.S.C. 1358a).
(D) Subsections (a), (b), (d), and (e) of section
358d (7 U.S.C. 1359).
(E) Part VII of subtitle B of title III (7 U.S.C.
1359aa-1359jj).
(F) In the case of peanuts, part I of subtitle C of
title III (7 U.S.C. 1361-1368).
(G) In the case of upland cotton, section 377 (7
U.S.C. 1377).
(H) Subtitle D of title III (7 U.S.C. 1379a-1379j).
(I) Title IV (7 U.S.C. 1401-1407).
(2) Reports and records.--Effective only for the 1996
through 2002 crops of peanuts, the first sentence of section
373(a) of the Agricultural Adjustment Act of 1938 (7 U.S.C.
1373(a)) is amended by inserting before ``all brokers and
dealers in peanuts'' the following: ``all producers engaged in
the production of peanuts,''.
(b) Agricultural Act of 1949.--
(1) Suspensions.--The following provisions of the
Agricultural Act of 1949 shall not be applicable to the 1996
through 2002 crops:
(A) Section 101 (7 U.S.C. 1441).
(B) Section 103(a) (7 U.S.C. 1444(a)).
(C) Section 105 (7 U.S.C. 1444b).
(D) Section 107 (7 U.S.C. 1445a).
(E) Section 110 (7 U.S.C. 1445e).
(F) Section 112 (7 U.S.C. 1445g).
(G) Section 115 (7 U.S.C. 1445k).
(H) Title III (7 U.S.C. 1447-1449).
(I) Title IV (7 U.S.C. 1421-1433d), other than
sections 404, 406, 412, 416, and 427 (7 U.S.C. 1424,
1426, 1429, 1431, and 1433f).
(J) Title V (7 U.S.C. 1461-1469).
(K) Title VI (7 U.S.C. 1471-1471j).
(2) Repeals.--The following provisions of the Agricultural
Act of 1949 are repealed:
(A) Section 103B (7 U.S.C. 1444-2).
(B) Section 108B (7 U.S.C. 1445c-3).
(C) Section 113 (7 U.S.C. 1445h).
(D) Section 114(b) (7 U.S.C. 1445j(b)).
(E) Sections 205, 206, and 207 (7 U.S.C. 1446f,
1446g, and 1446h).
(F) Section 406 (7 U.S.C. 1426).
(c) Suspension of Certain Quota Provisions.--The joint resolution
entitled ``A joint resolution relating to corn and wheat marketing
quotas under the Agricultural Adjustment Act of 1938, as amended'',
approved May 26, 1941 (7 U.S.C. 1330 and 1340), shall not be applicable
to the crops of wheat planted for harvest in the calendar years 1996
through 2002.
SEC. 110. EFFECT OF AMENDMENTS.
(a) Effect on Prior Crops.--Except as otherwise specifically
provided and notwithstanding any other provision of law, this title and
the amendments made by this title shall not affect the authority of the
Secretary to carry out a price support or production adjustment program
for any of the 1991 through 1995 crops of an agricultural commodity
established under a provision of law in effect immediately before the
date of the enactment of this Act.
(b) Liability.--A provision of this title or an amendment made by
this title shall not affect the liability of any person under any
provision of law as in effect before the date of the enactment of this
Act.
TITLE II--AGRICULTURAL TRADE
Subtitle A--Amendments to Agricultural Trade Development and Assistance
Act of 1954 and Related Statutes
SEC. 201. FOOD AID TO DEVELOPING COUNTRIES.
(a) In General.--Section 3 of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1691a) is amended to read as
follows:
``SEC. 3. FOOD AID TO DEVELOPING COUNTRIES.
``(a) Policy.--In light of the Uruguay Round Agreement on
Agriculture and the Ministerial Decision on Measures Concerning the
Possible Negative Effects of the Reform Program on Least-Developed and
Net-Food Importing Developing Countries, the United States reaffirms
the commitment of the United States to providing food aid to developing
countries.
``(b) Sense of congress.--It is the sense of Congress that--
``(1) the President should initiate consultations with
other donor nations to consider appropriate levels of food aid
commitments to meet the legitimate needs of developing
countries; and
``(2) the United States should increase its contribution of
bona fide food assistance to developing countries consistent
with the Agreement on Agriculture.''.
(b) Conforming Amendment.--Section 411 of the Uruguay Round
Agreements Act (19 U.S.C. 3611) is amended by striking subsection (e).
SEC. 202. TRADE AND DEVELOPMENT ASSISTANCE.
Section 101 of the Agricultural Trade Development and Assistance
Act of 1954 (7 U.S.C. 1701) is amended--
(1) by striking ``developing countries'' each place it
appears and inserting ``developing countries and private
entities''; and
(2) in subsection (b), by inserting ``and entities'' before
the period at the end.
SEC. 203. AGREEMENTS REGARDING ELIGIBLE COUNTRIES AND PRIVATE ENTITIES.
Section 102 of the Agricultural Trade Development and Assistance
Act of 1954 (7 U.S.C. 1702) is amended to read as follows:
``SEC. 102. AGREEMENTS REGARDING ELIGIBLE COUNTRIES AND PRIVATE
ENTITIES.
``(a) Priority.--In selecting agreements to be entered into under
this title, the Secretary shall give priority to agreements providing
for the export of agricultural commodities to developing countries
that--
``(1) have the demonstrated potential to become commercial
markets for competitively priced United States agricultural
commodities;
``(2) are undertaking measures for economic development
purposes to improve food security and agricultural development,
alleviate poverty, and promote broad-based equitable and
sustainable development; and
``(3) demonstrate the greatest need for food.
``(b) Private Entities.--An agreement entered into under this title
with a private entity shall require such security, or such other
provisions as the Secretary determines necessary, to provide reasonable
and adequate assurance of repayment of the financing extended to the
private entity.
``(c) Agricultural Market Development Plan.--
``(1) Definition of agricultural trade organization.--In
this subsection, the term `agricultural trade organization'
means a United States agricultural trade organization that
promotes the export and sale of a United States agricultural
commodity and that does not stand to profit directly from the
specific sale of the commodity.
``(2) Plan.--The Secretary shall consider a developing
country for which an agricultural market development plan has
been approved under this subsection to have the demonstrated
potential to become a commercial market for competitively
priced United States agricultural commodities for the purpose
of granting a priority under subsection (a).
``(3) Requirements.--
``(A) In general.--To be approved by the Secretary,
an agricultural market development plan shall--
``(i) be submitted by a developing country
or private entity, in conjunction with an
agricultural trade organization;
``(ii) describe a project or program for
the development and expansion of a United
States agricultural commodity market in a
developing country, and the economic
development of the country, using funds derived
from the sale of agricultural commodities
received under an agreement described in
section 101;
``(iii) provide for any matching funds that
are required by the Secretary for the project
or program;
``(iv) provide for a results-oriented means
of measuring the success of the project or
program; and
``(v) provide for graduation to the use of
non-Federal funds to carry out the project or
program, consistent with requirements
established by the Secretary.
``(B) Agricultural trade organization.--The project
or program shall be designed and carried out by the
agricultural trade organization.
``(C) Additional requirements.--An agricultural
market development plan shall contain such additional
requirements as are determined necessary by the
Secretary.
``(4) Administrative costs.--
``(A) In general.--The Secretary shall make funds
made available to carry out this title available for
the reimbursement of administrative expenses incurred
by agricultural trade organizations in developing,
implementing, and administering agricultural market
development plans, subject to such requirements and in
such amounts as the Secretary considers appropriate.
``(B) Duration.--The funds shall be made available
to agricultural trade organizations for the duration of
the applicable agricultural market development plan.
``(C) Termination.--The Secretary may terminate
assistance made available under this subsection if the
agricultural trade organization is not carrying out the
approved agricultural market development plan.''.
SEC. 204. TERMS AND CONDITIONS OF SALES.
Section 103 of the Agricultural Trade Development and Assistance
Act of 1954 (7 U.S.C. 1703) is amended--
(1) in subsection (a)(2)(A)--
(A) by striking ``a recipient country to make'';
and
(B) by striking ``such country'' and inserting
``the appropriate country'';
(2) in subsection (c), by striking ``less than 10 nor'';
and
(3) in subsection (d)--
(A) by striking ``recipient country'' and inserting
``developing country or private entity''; and
(B) by striking ``7'' and inserting ``5''.
SEC. 205. USE OF LOCAL CURRENCY PAYMENT.
Section 104 of the Agricultural Trade Development and Assistance
Act of 1954 (7 U.S.C. 1704) is amended--
(1) in subsection (a), by striking ``recipient country''
and inserting ``developing country or private entity''; and
(2) in subsection (c)--
(A) by striking ``recipient country'' each place it
appears and inserting ``appropriate developing
country''; and
(B) in paragraph (3), by striking ``recipient
countries'' and inserting ``appropriate developing
countries''.
SEC. 206. VALUE-ADDED FOODS.
Section 105 of the Agricultural Trade Development and Assistance
Act of 1954 (7 U.S.C. 1705) is repealed.
SEC. 207. ELIGIBLE ORGANIZATIONS.
(a) In General.--Section 202 of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1722) is amended--
(1) by striking subsection (b) and inserting the following:
``(b) Nonemergency Assistance.--
``(1) In general.--The Administrator may provide
agricultural commodities for nonemergency assistance under this
title through eligible organizations (as described in
subsection (d)) that have entered into an agreement with the
Administrator to use the commodities in accordance with this
title.
``(2) Limitation.--The Administrator may not deny a request
for funds submitted under this subsection because the program
for which the funds are requested--
``(A) would be carried out by the eligible
organization in a foreign country in which the Agency
for International Development does not have a mission,
office, or other presence; or
``(B) is not part of a development plan for the
country prepared by the Agency.''; and
(2) in subsection (e)--
(A) in the subsection heading, by striking
``Private Voluntary Organizations and Cooperatives''
and inserting ``Eligible Organizations'';
(B) in paragraph (1)--
(i) by striking ``$13,500,000'' and
inserting ``$28,000,000''; and
(ii) by striking ``private voluntary
organizations and cooperatives to assist such
organizations and cooperatives'' and inserting
``eligible organizations described in
subsection (d), to assist the organizations'';
(C) by striking paragraph (2) and inserting the
following:
``(2) Request for funds.--To receive funds made available
under paragraph (1), a private voluntary organization or
cooperative shall submit a request for the funds that is
subject to approval by the Administrator.''; and
(D) in paragraph (3), by striking ``a private
voluntary organization or cooperative, the
Administrator may provide assistance to that
organization or cooperative'' and inserting ``an
eligible organization, the Administrator may provide
assistance to the eligible organization''.
(b) Conforming Amendments.--Section 207 of the Agricultural Trade
Development and Assistance Act of 1954 (7 U.S.C. 1726a) is amended--
(1) in subsection (a), by striking ``a private voluntary
organization or cooperative'' and inserting ``an eligible
organization''; and
(2) in subsection (b)--
(A) in paragraph (1), by striking ``private
voluntary organizations and cooperatives'' and
inserting ``eligible organizations''; and
(B) in paragraph (2), by striking ``organizations,
cooperatives,'' and inserting ``eligible
organizations''.
SEC. 208. GENERATION AND USE OF FOREIGN CURRENCIES.
Section 203 of the Agricultural Trade Development and Assistance
Act of 1954 (7 U.S.C. 1723) is amended--
(1) in subsection (a), by inserting ``, or in a country in
the same region,'' after ``in the recipient country'';
(2) in subsection (b)--
(A) by inserting ``or in countries in the same
region,'' after ``in recipient countries,''; and
(B) by striking ``10 percent'' and inserting ``15
percent'';
(3) in subsection (c), by inserting ``or in a country in
the same region,'' after ``in the recipient country,''; and
(4) in subsection (d)(2), by inserting ``or within a
country in the same region'' after ``within the recipient
country''.
SEC. 209. GENERAL LEVELS OF ASSISTANCE UNDER PUBLIC LAW 480.
Section 204(a) of the Agricultural Trade Development and Assistance
Act of 1954 (7 U.S.C. 1724(a)) is amended--
(1) in paragraph (1), by striking ``amount that'' and all
that follows through the period at the end and inserting
``amount that for each of fiscal years 1996 through 2002 is not
less than 2,025,000 metric tons.'';
(2) in paragraph (2), by striking ``amount that'' and all
that follows through the period at the end and inserting
``amount that for each of fiscal years 1996 through 2002 is not
less than 1,550,000 metric tons.''; and
(3) in paragraph (3), by adding at the end the following:
``No waiver shall be made before the beginning of the
applicable fiscal year.''.
SEC. 210. FOOD AID CONSULTATIVE GROUP.
Section 205 of the Agricultural Trade Development and Assistance
Act of 1954 (7 U.S.C. 1725) is amended--
(1) in subsection (a), by striking ``private voluntary
organizations, cooperatives and indigenous non-governmental
organizations'' and inserting ``eligible organizations
described in section 202(d)(1)'';
(2) in subsection (b)--
(A) in paragraph (2), by striking ``for
International Affairs and Commodity Programs'' and
inserting ``of Agriculture for Farm and Foreign
Agricultural Services'';
(B) in paragraph (4), by striking ``and'' at the
end;
(C) in paragraph (5), by striking the period at the
end and inserting ``; and''; and
(D) by adding at the end the following:
``(6) representatives from agricultural producer groups in
the United States.'';
(3) in the second sentence of subsection (d), by inserting
``(but at least twice per year)'' after ``when appropriate'';
and
(4) in subsection (f), by striking ``1995'' and inserting
``2002''.
SEC. 211. SUPPORT OF NONGOVERNMENTAL ORGANIZATIONS.
(a) In General.--Section 306(b) of the Agricultural Trade
Development and Assistance Act of 1954 (7 U.S.C. 1727e(b)) is amended--
(1) in the subsection heading, by striking ``Indigenous
Non-Governmental'' and inserting ``Nongovernmental''; and
(2) by striking ``utilization of indigenous'' and inserting
``utilization of''.
(b) Conforming Amendment.--Section 402 of the Agricultural Trade
Development and Assistance Act of 1954 (7 U.S.C. 1732) is amended by
striking paragraph (6) and inserting the following:
``(6) Nongovernmental organization.--The term
`nongovernmental organization' means an organization that works
at the local level to solve development problems in a foreign
country in which the organization is located, except that the
term does not include an organization that is primarily an
agency or instrumentality of the government of the foreign
country.''.
SEC. 212. COMMODITY DETERMINATIONS.
Section 401 of the Agricultural Trade Development and Assistance
Act of 1954 (7 U.S.C. 1731) is amended--
(1) by striking subsections (a) through (d) and inserting
the following:
``(a) Availability of Commodities.--No agricultural commodity shall
be available for disposition under this Act if the Secretary determines
that the disposition would reduce the domestic supply of the commodity
below the supply needed to meet domestic requirements and provide
adequate carryover (as determined by the Secretary), unless the
Secretary determines that some part of the supply should be used to
carry out urgent humanitarian purposes under this Act.'';
(2) by redesignating subsections (e) and (f) as subsections
(b) and (c), respectively; and
(3) in subsection (c) (as so redesignated), by striking
``(e)(1)'' and inserting ``(b)(1)''.
SEC. 213. GENERAL PROVISIONS.
Section 403 of the Agricultural Trade Development and Assistance
Act of 1954 (7 U.S.C. 1733) is amended--
(1) in subsection (b)--
(A) in the subsection heading, by striking
``Consultations'' and inserting ``Impact on Local
Farmers and Economy''; and
(B) by striking ``consult with'' and all that
follows through ``other donor organizations to'';
(2) in subsection (c)--
(A) by striking ``from countries''; and
(B) by striking ``for use'' and inserting ``or
use'';
(3) in subsection (f)--
(A) by inserting ``or private entities, as
appropriate,'' after ``from countries''; and
(B) by inserting ``or private entities'' after
``such countries''; and
(4) in subsection (i)(2), by striking subparagraph (C).
SEC. 214. AGREEMENTS.
Section 404 of the Agricultural Trade Development and Assistance
Act of 1954 (7 U.S.C. 1734) is amended--
(1) in subsection (a), by inserting ``with foreign
countries'' after ``Before entering into agreements'';
(2) in subsection (b)(2)--
(A) by inserting ``with foreign countries'' after
``with respect to agreements entered into''; and
(B) by inserting before the semicolon at the end
the following: ``and broad-based economic growth''; and
(3) in subsection (c), by striking paragraph (1) and
inserting the following:
``(1) In general.--Agreements to provide assistance on a
multi-year basis to recipient countries or to eligible
organizations--
``(A) may be made available under titles I and III;
and
``(B) shall be made available under title II.''.
SEC. 215. USE OF COMMODITY CREDIT CORPORATION.
Section 406 of the Agricultural Trade Development and Assistance
Act of 1954 (7 U.S.C. 1736) is amended--
(1) in subsection (a), by striking ``shall'' and inserting
``may''; and
(2) in subsection (b)--
(A) by inserting ``titles II and III of'' after
``commodities made available under''; and
(B) by striking paragraph (4) and inserting the
following:
``(4) the vessel freight charges from United States ports
or designated Canadian transshipment ports, as determined by
the Secretary, to designated ports of entry abroad;''.
SEC. 216. ADMINISTRATIVE PROVISIONS.
Section 407 of the Agricultural Trade Development and Assistance
Act of 1954 (7 U.S.C. 1736a) is amended--
(1) in subsection (a)--
(A) in paragraph(1), by inserting ``or private
entity that enters into an agreement under title I''
after ``importing country''; and
(B) in paragraph (2), by adding at the end the
following: ``Resulting contracts may contain such terms
and conditions as the Secretary determines are
necessary and appropriate.'';
(2) in subsection (c)--
(A) in paragraph (1)(A), by inserting ``importer
or'' before ``importing country''; and
(B) in paragraph (2)(A), by inserting ``importer
or'' before ``importing country'';
(3) in subsection (d)--
(A) by striking paragraph (2) and inserting the
following:
``(2) Freight procurement.--Notwithstanding the Federal
Property and Administrative Services Act of 1949 (40 U.S.C. 471
et seq.) or other similar provisions of law relating to the
making or performance of Federal Government contracts, ocean
transportation under titles II and III may be procured on the
basis of such full and open competitive procedures. Resulting
contracts may contain such terms and conditions, as the
Administrator determines are necessary and appropriate.''; and
(B) by striking paragraph (4);
(4) in subsection (g)(2)--
(A) in subparagraph (B), by striking ``and'' at the
end;
(B) in subparagraph (C), by striking the period at
the end and inserting ``; and''; and
(C) by adding at the end the following:
``(D) an assessment of the progress towards
achieving food security in each country receiving food
assistance from the United States Government, with
special emphasis on the nutritional status of the
poorest populations in each country.''; and
(5) by striking subsection (h).
SEC. 217. EXPIRATION DATE.
Section 408 of the Agricultural Trade Development and Assistance
Act of 1954 (7 U.S.C. 1736b) is amended by striking ``1995'' and
inserting ``2002''.
SEC. 218. REGULATIONS.
Section 409 of the Agricultural Trade Development and Assistance
Act of 1954 (7 U.S.C. 1736c) is repealed.
SEC. 219. INDEPENDENT EVALUATION OF PROGRAMS.
Section 410 of the Agricultural Trade Development and Assistance
Act of 1954 (7 U.S.C. 1736d) is repealed.
SEC. 220. AUTHORIZATION OF APPROPRIATIONS.
Section 412 of the Agricultural Trade Development and Assistance
Act of 1954 (7 U.S.C. 1736f) is amended--
(1) by striking subsections (b) and (c) and inserting the
following:
``(b) Transfer of Funds.--Notwithstanding any other provision of
law, the President may direct that--
``(1) up to 15 percent of the funds available for any
fiscal year for carrying out any title of this Act be used to
carry out any other title of this Act; and
``(2) any funds available for title III be used to carry
out title II.''; and
(2) by redesignating subsections (d) and (e) as subsections
(c) and (d), respectively.
SEC. 221. COORDINATION OF FOREIGN ASSISTANCE PROGRAMS.
Section 413 of the Agricultural Trade Development and Assistance
Act of 1954 (7 U.S.C. 1736g) is amended by inserting ``title III of''
before ``this Act'' each place it appears.
SEC. 222. MICRONUTRIENT FORTIFICATION PILOT PROGRAM.
Title IV of the Agricultural Trade Development and Assistance Act
of 1954 (7 U.S.C. 1731 et seq.) is amended by adding at the end the
following:
``SEC. 415. MICRONUTRIENT FORTIFICATION PILOT PROGRAM.
``(a) In General.--Not later than September 30, 1997, the
Secretary, in consultation with the Administrator, shall establish a
micronutrient fortification pilot program under this Act. The purposes
of the program shall be to--
``(1) assist developing countries in correcting
micronutrient dietary deficiencies among segments of the
populations of the countries; and
``(2) encourage the development of technologies for the
fortification of whole grains and other commodities that are
readily transferable to developing countries.
``(b) Selection of Participating Countries.--From among the
countries eligible for assistance under this Act, the Secretary may
select not more than 5 developing countries to participate in the pilot
program.
``(c) Fortification.--Under the pilot program, whole grains and
other commodities made available to a developing country selected to
participate in the pilot program may be fortified with 1 or more
micronutrients (including vitamin A, iron, and iodine) with respect to
which a substantial portion of the population in the country are
deficient. The commodity may be fortified in the United States or in
the developing country.
``(d) Termination of Authority.--The authority to carry out the
pilot program established under this section shall terminate on
September 30, 2002.''.
SEC. 223. USE OF CERTAIN LOCAL CURRENCY.
Title IV of the Agricultural Trade Development and Assistance Act
of 1954 (7 U.S.C. 1731 et seq.) (as amended by section 222) is further
amended by adding at the end the following:
``SEC. 416. USE OF CERTAIN LOCAL CURRENCY.
``Local currency payments received by the United States pursuant to
agreements entered into under title I (as in effect on November 27,
1990) may be utilized by the Secretary in accordance with section 108
(as in effect on November 27, 1990).''.
SEC. 224. LEVELS OF ASSISTANCE UNDER FARMER-TO-FARMER PROGRAM.
Section 501 of the Agricultural Trade Development and Assistance
Act of 1954 (7 U.S.C. 1737) is amended--
(1) in subsection (a)--
(A) by redesignating paragraphs (4) through (6) as
paragraphs (5) through (7), respectively; and
(B) by inserting after paragraph (3) the following:
``(4) assist the travel of farmers and other agricultural
professionals from developing countries, middle income
countries, and emerging democracies to the United States for
educational purposes consistent with the objectives of this
section;''; and
(2) in subsection (c), by striking ``1991 through 1995''
and inserting ``1996 through 2002''.
SEC. 225. FOOD SECURITY COMMODITY RESERVE.
(a) In General.--Title III of the Agricultural Act of 1980 (7
U.S.C. 1736f-1 et seq.) is amended to read as follows:
``TITLE III--FOOD SECURITY COMMODITY RESERVE
``SEC. 301. SHORT TITLE.
``This title may be cited as the `Food Security Commodity Reserve
Act of 1996'.
``SEC. 302. ESTABLISHMENT OF COMMODITY RESERVE.
``(a) In General.--To provide for a reserve solely to meet
emergency humanitarian food needs in developing countries, the
Secretary of Agriculture (referred to in this title as the `Secretary')
shall establish a reserve stock of wheat, rice, corn, or sorghum, or
any combination of the commodities, totalling not more than 4,000,000
metric tons for use as described in subsection (c).
``(b) Commodities in Reserve.--
``(1) In general.--The reserve established under this
section shall consist of--
``(A) wheat in the reserve established under the
Food Security Wheat Reserve Act of 1980 as of the
effective date of the Agricultural Reform and
Improvement Act of 1996;
``(B) wheat, rice, corn, and sorghum (referred to
in this section as `eligible commodities') acquired in
accordance with paragraph (2) to replenish eligible
commodities released from the reserve, including wheat
to replenish wheat released from the reserve
established under the Food Security Wheat Reserve Act
of 1980 but not replenished as of the effective date of
the Agricultural Reform and Improvement Act of 1996;
and
``(C) such rice, corn, and sorghum as the Secretary
may, at such time and in such manner as the Secretary
determines appropriate, acquire as a result of
exchanging an equivalent value of wheat in the reserve
established under this section.
``(2) Replenishment of reserve.--
``(A) In general.--Subject to subsection (i),
commodities of equivalent value to eligible commodities
in the reserve established under this section may be
acquired--
``(i) through purchases--
``(I) from producers; or
``(II) in the market, if the
Secretary determines that the purchases
will not unduly disrupt the market; or
``(ii) by designation by the Secretary of
stocks of eligible commodities of the Commodity
Credit Corporation.
``(B) Funds.--Any use of funds to acquire eligible
commodities through purchases from producers or in the
market to replenish the reserve must be authorized in
an appropriation Act.
``(c) Release of Eligible Commodities.--
``(1) Emergency food assistance.--Notwithstanding any other
law, eligible commodities designated or acquired for the
reserve established under this section may be released by the
Secretary to provide, on a donation or sale basis, emergency
food assistance to developing countries at such time as the
domestic supply of the eligible commodities is so limited that
quantities of the eligible commodities cannot be made available
for disposition under the Agricultural Trade Development and
Assistance Act of 1954 (7 U.S.C. 1691 et seq.) (other than
disposition for urgent humanitarian purposes under section 401
of the Act (7 U.S.C. 1731)).
``(2) Provision of urgent humanitarian relief.--
``(A) In general.--Notwithstanding paragraph (1),
eligible commodities may be released from the reserve
established under this section for any fiscal year,
without regard to the availability of domestic supply,
for use under title II of the Agricultural Trade
Development Assistance Act of 1954 (7 U.S.C. 1721 et
seq.) in providing urgent humanitarian relief in any
developing country suffering a major disaster (as
determined by the Secretary) in accordance with this
paragraph.
``(B) Exceptional need.--If the eligible
commodities needed for relief cannot be made available
for relief in a timely manner under the normal means of
obtaining eligible commodities for food assistance
because of circumstances of unanticipated and
exceptional need, up to 500,000 metric tons of eligible
commodities may be released under subparagraph (A).
``(C) Funds.--If the Secretary certifies that the
funds made available for a fiscal year to carry out
title II of the Agricultural Trade Development and
Assistance Act of 1954 (7 U.S.C. 1721 et seq.) are not
less than the funds made available for the previous
fiscal year, up to 1,000,000 metric tons of eligible
commodities may be released under subparagraph (A).
``(D) Waiver of minimum tonnage requirements.--
Nothing in this paragraph shall require the exercise of
the waiver under section 204(a)(3) of the Agricultural
Trade Development and Assistance Act of 1954 (7 U.S.C.
5624(a)(3)) as a prerequisite for the release of
eligible commodities under this paragraph.
``(E) Limitation.--The quantity of eligible
commodities released under this paragraph may not
exceed 1,000,000 metric tons in any fiscal year.
``(3) Processing of eligible commodities.--Eligible
commodities that are released from the reserve established
under this section may be processed in the United States and
shipped to a developing country when conditions in the
recipient country require processing.
``(4) Exchange.--The Secretary may exchange an eligible
commodity for another United States commodity of equal value,
including powdered milk, pulses, and vegetable oil.
``(d) Use of Eligible Commodities.--Eligible commodities that are
released from the reserve established under this section for the
purpose of subsection (c) shall be made available under the
Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C.
1691 et seq.) to meet famine or other urgent or extraordinary relief
needs, except that section 401 of the Act (7 U.S.C. 1731), with respect
to determinations of availability, shall not be applicable to the
release.
``(e) Management of Eligible Commodities.--The Secretary shall
provide--
``(1) for the management of eligible commodities in the
reserve established under this section as to location and
quality of eligible commodities needed to meet emergency
situations; and
``(2) for the periodic rotation or replacement of stocks of
eligible commodities in the reserve to avoid spoilage and
deterioration of the commodities.
``(f) Treatment of Reserve Under Other Law.--Eligible commodities
in the reserve established under this section shall not be--
``(1) considered a part of the total domestic supply
(including carryover) for the purpose of subsection (c) or for
the purpose of administering the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1691 et seq.); and
``(2) subject to any quantitative limitation on exports
that may be imposed under section 7 of the Export
Administration Act of 1979 (50 U.S.C. App. 2406).
``(g) Use of Commodity Credit Corporation.--
``(1) In general.--Subject to the limitations provided in
this section, the funds, facilities, and authorities of the
Commodity Credit Corporation shall be used by the Secretary in
carrying out this section, except that any restriction
applicable to the acquisition, storage, or disposition of
eligible commodities owned or controlled by the Commodity
Credit Corporation shall not apply.
``(2) Reimbursement.--
``(A) In general.--The Commodity Credit Corporation
shall be reimbursed for the release of eligible
commodities from funds made available to carry out the
Agricultural Trade Development and Assistance Act of
1954 (7 U.S.C. 1691 et seq.).
``(B) Basis for reimbursement.--The reimbursement
shall be made on the basis of the lesser of--
``(i) the actual costs incurred by the
Commodity Credit Corporation with respect to
the eligible commodity; or
``(ii) the export market price of the
eligible commodity (as determined by the
Secretary) as of the time the eligible
commodity is released from the reserve for the
purpose.
``(C) Source of funds.--The reimbursement may be
made from funds appropriated for the purpose of
reimbursement in subsequent fiscal years.
``(h) Finality of Determination.--Any determination by the
Secretary under this section shall be final.
``(i) Termination of Authority.--
``(1) In general.--The authority to replenish stocks of
eligible commodities to maintain the reserve established under
this section shall terminate on September 30, 2002.
``(2) Disposal of eligible commodities.--Eligible
commodities remaining in the reserve after September 30, 2002,
shall be disposed of by release for use in providing for
emergency humanitarian food needs in developing countries as
provided in this section.''.
(b) Conforming Amendment.--Section 208(d) of the Agriculture Trade
Suspension Adjustment Act of 1980 (7 U.S.C. 4001(d)) is amended by
striking paragraph (2) and inserting the following:
``(2) Applicability of certain provisions.--Subsections
(c), (d), (e), (f), and (g)(2) of section 302 of the Food
Security Commodity Reserve Act of 1996 shall apply to
commodities in any reserve established under paragraph (1),
except that the references to `eligible commodities' in the
subsections shall be deemed to be references to `agricultural
commodities'.''.
SEC. 226. PROTEIN BYPRODUCTS DERIVED FROM ALCOHOL FUEL PRODUCTION.
Section 1208 of the Agriculture and Food Act of 1981 (7 U.S.C.
1736n) is repealed.
SEC. 227. FOOD FOR PROGRESS PROGRAM.
The Food for Progress Act of 1985 (7 U.S.C. 1736o) is amended--
(1) in subsection (b)--
(A) in paragraph (1)--
(i) by striking ``(b)(1)'' and inserting
``(b)''; and
(ii) in the first sentence, by inserting
``intergovernmental organizations'' after
``cooperatives''; and
(B) by striking paragraph (2);
(2) in subsection (e)(4), by striking ``203'' and inserting
``406'';
(3) in subsection (f)--
(A) in paragraph (1), by striking ``in the case of
the independent states of the former Soviet Union,'';
(B) by striking paragraph (2);
(C) in paragraph (4), by inserting ``in each of
fiscal years 1996 through 2002'' after ``may be used'';
and
(D) by redesignating paragraphs (3) through (5) as
paragraphs (2) through (4), respectively;
(4) in subsection (g), by striking ``1995'' and inserting
``2002'';
(5) in subsection (j), by striking ``shall'' and inserting
``may'';
(6) in subsection (k), by striking ``1995'' and inserting
``2002'';
(7) in subsection (l)(1)--
(A) by striking ``1991 through 1995'' and inserting
``1996 through 2002''; and
(B) by inserting ``, and to provide technical
assistance for monetization programs,'' after
``monitoring of food assistance programs''; and
(8) in subsection (m)--
(A) by striking ``with respect to the independent
states of the former Soviet Union'';
(B) by striking ``private voluntary organizations
and cooperatives'' each place it appears and inserting
``agricultural trade organizations, intergovernmental
organizations, private voluntary organizations, and
cooperatives''; and
(C) in paragraph (2), by striking ``in the
independent states''.
SEC. 228. USE OF FOREIGN CURRENCY PROCEEDS FROM EXPORT SALES FINANCING.
Section 402 of the Mutual Security Act of 1954 (22 U.S.C. 1922) is
repealed.
SEC. 229. STIMULATION OF FOREIGN PRODUCTION.
Section 7 of the Act of December 30, 1947 (61 Stat. 947, chapter
526; 50 U.S.C. App. 1917) is repealed.
Subtitle B--Amendments to Agricultural Trade Act of 1978
SEC. 241. AGRICULTURAL EXPORT PROMOTION STRATEGY.
(a) In General.--Section 103 of the Agricultural Trade Act of 1978
(7 U.S.C. 5603) is amended to read as follows:
``SEC. 103. AGRICULTURAL EXPORT PROMOTION STRATEGY.
``(a) In General.--The Secretary shall develop a strategy for
implementing Federal agricultural export promotion programs that takes
into account the new market opportunities for agricultural products,
including opportunities that result from--
``(1) the North American Free Trade Agreement and the
Uruguay Round Agreements;
``(2) any accession to membership in the World Trade
Organization;
``(3) the continued economic growth in the Pacific Rim; and
``(4) other developments.
``(b) Purpose of Strategy.--The strategy developed under subsection
(a) shall encourage the maintenance, development, and expansion of
export markets for United States agricultural commodities and related
products, including high-value and value-added products.
``(c) Goals of Strategy.--The strategy developed under subsection
(a) shall have the following goals:
``(1) By September 30, 2002, increasing the value of annual
United States agricultural exports to $60,000,000,000.
``(2) By September 30, 2002, increasing the United States
share of world export trade in agricultural products
significantly above the average United States share from 1993
through 1995.
``(3) By September 30, 2002, increasing the United States
share of world trade in high-value agricultural products to 20
percent.
``(4) Ensuring that the value of United States exports of
agricultural products increases at a faster rate than the rate
of increase in the value of overall world export trade in
agricultural products.
``(5) Ensuring that the value of United States exports of
high-value agricultural products increases at a faster rate
than the rate of increase in overall world export trade in
high-value agricultural products.
``(6) Ensuring to the extent practicable that--
``(A) substantially all obligations undertaken in
the Uruguay Round Agreement on Agriculture that provide
significantly increased access for United States
agricultural commodities are implemented to the extent
required by the Uruguay Round Agreements; or
``(B) applicable United States trade laws are used
to secure United States rights under the Uruguay Round
Agreement on Agriculture.
``(d) Priority Markets.--
``(1) Identification of markets.--In developing the
strategy required under subsection (a), the Secretary shall
identify as priority markets--
``(A) those markets in which imports of
agricultural products show the greatest potential for
increase by September 30, 2002; and
``(B) those markets in which, with the assistance
of Federal export promotion programs, exports of United
States agricultural products show the greatest
potential for increase by September 30, 2002.
``(2) Identification of supporting offices.--The President
shall identify annually in the budget of the United States
Government submitted under section 1105 of title 31, United
States Code, each overseas office of the Foreign Agricultural
Service that provides assistance to United States exporters in
each of the priority markets identified under paragraph (1).
``(e) Report.--Not later than December 31, 2001, the Secretary
shall prepare and submit a report to Congress assessing progress in
meeting the goals established by subsection (c).
``(f) Failure To Meet Goals.--Notwithstanding any other law, if the
Secretary determines that more than 2 of the goals established by
subsection (c) are not met by September 30, 2002, the Secretary may not
carry out agricultural trade programs under the Agricultural Trade Act
of 1978 (7 U.S.C. 5601 et seq.) as of that date.
``(g) No Private Right of Action.--This section shall not create
any private right of action.''.
(b) Continuation of Funding.--
(1) In general.--If the Secretary of Agriculture makes a
determination under section 103(f) of the Agricultural Trade
Act of 1978 (as amended by subsection (a)), the Secretary shall
utilize funds of the Commodity Credit Corporation to promote
United States agricultural exports in a manner consistent with
the Commodity Credit Corporation Charter Act (15 U.S.C. 714 et
seq.) and obligations pursuant to the Uruguay Round Agreements.
(2) Funding.--The amount of Commodity Credit Corporation
funds used to carry out paragraph (1) during a fiscal year
shall not exceed the total outlays for agricultural trade
programs under the Agricultural Trade Act of 1978 (7 U.S.C.
5601 et seq.) during fiscal year 2002.
(c) Elimination of Report.--
(1) In general.--Section 601 of the Agricultural Trade Act
of 1978 (7 U.S.C. 5711) is repealed.
(2) Conforming amendment.--The last sentence of section 603
of the Agricultural Trade Act of 1978 (7 U.S.C. 5713) is
amended by striking ``, in a consolidated report,'' and all
that follows through ``section 601'' and inserting ``or in a
consolidated report''.
SEC. 242. EXPORT CREDITS.
(a) Export Credit Guarantee Program.--Section 202 of the
Agricultural Trade Act of 1978 (7 U.S.C. 5622) is amended--
(1) in subsection (a)--
(A) by striking ``Guarantees.--The'' and inserting
the following: ``Guarantees.--
``(1) In general.--The''; and
(B) by adding at the end the following:
``(2) Supplier credits.--In carrying out this section, the
Commodity Credit Corporation may issue guarantees for the
repayment of credit made available for a period of not more
than 180 days by a United States exporter to a buyer in a
foreign country.'';
(2) in subsection (f)--
(A) by striking ``(f) Restrictions.--The'' and
inserting the following:
``(f) Restrictions.--
``(1) In general.--The''; and
(B) by adding at the end the following:
``(2) Criteria for determination.--In making the
determination required under paragraph (1) with respect to
credit guarantees under subsection (b) for a country, the
Secretary may consider, in addition to financial,
macroeconomic, and monetary indicators--
``(A) whether an International Monetary Fund
standby agreement, Paris Club rescheduling plan, or
other economic restructuring plan is in place with
respect to the country;
``(B) the convertibility of the currency of the
country;
``(C) whether the country provides adequate legal
protection for foreign investments;
``(D) whether the country has viable financial
markets;
``(E) whether the country provides adequate legal
protection for the private property rights of citizens
of the country; and
``(F) any other factors that are relevant to the
ability of the country to service the debt of the
country.'';
(3) by striking subsection (h) and inserting the following:
``(h) United States Agricultural Components.--The Commodity Credit
Corporation shall finance or guarantee under this section only United
States agricultural commodities.'';
(4) in subsection (i)--
(A) by striking ``Institutions.--A financial'' and
inserting the following: ``Institutions.--
``(1) In general.--A financial'';
(B) by striking paragraph (1);
(C) by striking ``(2) is'' and inserting the
following:
``(A) is'';
(D) by striking ``(3) is'' and inserting the
following:
``(B) is''; and
(E) by adding at the end the following:
``(2) Third country banks.--The Commodity Credit
Corporation may guarantee under subsections (a) and (b) the
repayment of credit made available to finance an export sale
irrespective of whether the obligor is located in the country
to which the export sale is destined.''; and
(5) by striking subsection (k) and inserting the following:
``(k) Processed and High-Value Products.--
``(1) In general.--In issuing export credit guarantees
under this section, the Commodity Credit Corporation shall,
subject to paragraph (2), ensure that not less than 25 percent
for each of fiscal years 1996 and 1997, 30 percent for each of
fiscal years 1998 and 1999, and 35 percent for each of fiscal
years 2000, 2001, and 2002, of the total amount of credit
guarantees issued for a fiscal year is issued to promote the
export of processed or high-value agricultural products and
that the balance is issued to promote the export of bulk or raw
agricultural commodities.
``(2) Limitation.--The percentage requirement of paragraph
(1) shall apply for a fiscal year to the extent that a
reduction in the total amount of credit guarantees issued for
the fiscal year is not required to meet the percentage
requirement.''.
(b) Funding Levels.--Section 211(b) of the Agricultural Trade Act
of 1978 (7 U.S.C. 5641(b)) is amended--
(1) by striking paragraph (2);
(2) by redesignating subparagraph (B) of paragraph (1) as
paragraph (2) and indenting the margin of paragraph (2) (as so
redesignated) so as to align with the margin of paragraph (1);
and
(3) by striking paragraph (1) and inserting the following:
``(1) Export credit guarantees.--The Commodity Credit
Corporation shall make available for each of fiscal years 1996
through 2002 not less than $5,500,000,000 in credit guarantees
under subsections (a) and (b) of section 202.''.
(c) Definitions.--Section 102(7) of the Agricultural Trade Act of
1978 (7 U.S.C. 5602(7)) is amended by striking subparagraphs (A) and
(B) and inserting the following:
``(A) an agricultural commodity or product entirely
produced in the United States; or
``(B) a product of an agricultural commodity--
``(i) 90 percent or more of which by
weight, excluding packaging and water, is
entirely produced in the United States; and
``(ii) that the Secretary determines to be
a high value agricultural product.''.
(d) Regulations.--Not later than 180 days after the effective date
of this title, the Secretary of Agriculture shall issue regulations to
carry out the amendments made by this section.
SEC. 243. MARKET PROMOTION PROGRAM.
Effective October 1, 1995, section 211(c)(1) of the Agricultural
Trade Act of 1978 (7 U.S.C. 5641(c)(1)) is amended--
(1) by striking ``and'' after ``1991 through 1993,''; and
(2) by striking ``through 1997,'' and inserting ``through
1995, and not more than $70,000,000 for each of fiscal years
1996 through 2002,'':
Provided, That funds made available under this Act to carry out the
non-generic activities of the market promotion program established
under section 203 of the Agricultural Trade Act of 1978 (7 U.S.C. 5623)
may be used to provide cost-share assistance only to organizations that
are non-foreign entities and are recognized as small business concerns
under section 3(a) of the Small Business Act (15 U.S.C. 632(a)) or to
the associations described in the first section of the Act entitled
``An Act to authorize association of producers of agricultural
products'', approved February 22, 1922 (7 U.S.C. 291): Provided
further, that such funds may not be used to provide cost-share
assistance to a foreign eligible trade organization: Provided further,
That none of the funds made available under this Act may be used to
carry out the market promotion program established under section 203 of
the Agricultural Trade Act of 1978 (7 U.S.C. 5623) if the aggregate
amount of funds and value of commodities under the program exceeds
$70,000,000.
SEC. 244. EXPORT ENHANCEMENT PROGRAM.
Effective October 1, 1995, section 301(e)(1) of the Agricultural
Trade Act of 1978 (7 U.S.C. 5651(e)(1)) is amended to read as follows:
``(1) In general.--The Commodity Credit Corporation shall
make available to carry out the program established under this
section not more than--
``(A) $350,000,000 for fiscal year 1996;
``(B) $350,000,000 for fiscal year 1997;
``(C) $500,000,000 for fiscal year 1998;
``(D) $550,000,000 for fiscal year 1999;
``(E) $579,000,000 for fiscal year 2000;
``(F) $478,000,000 for fiscal year 2001; and
``(G) $478,000,000 for fiscal year 2002.''.
SEC. 245. ARRIVAL CERTIFICATION.
Section 401 of the Agricultural Trade Act of 1978 (7 U.S.C.
5662(a)) is amended by striking subsection (a) and inserting the
following:
``(a) Arrival Certification.--With respect to a commodity provided,
or for which financing or a credit guarantee or other assistance is
made available, under a program authorized in section 201, 202, or 301,
the Commodity Credit Corporation shall require the exporter of the
commodity to maintain records of an official or customary commercial
nature or other documents as the Secretary may require, and shall allow
representatives of the Commodity Credit Corporation access to the
records or documents as needed, to verify the arrival of the commodity
in the country that was the intended destination of the commodity.''.
SEC. 246. COMPLIANCE.
Section 402(a) of the Agricultural Trade Act of 1978 (7 U.S.C.
5662(a)) is amended--
(1) by striking paragraph (2); and
(2) by redesignating paragraph (3) as paragraph (2).
SEC. 247. REGULATIONS.
Section 404 of the Agricultural Trade Act of 1978 (7 U.S.C. 5664)
is repealed.
SEC. 248. TRADE COMPENSATION AND ASSISTANCE PROGRAMS.
Title IV of the Agricultural Trade Act of 1978 (7 U.S.C. 5661 et
seq.) is amended by adding at the end the following:
``SEC. 417. TRADE COMPENSATION AND ASSISTANCE PROGRAMS.
``(a) In General.--Notwithstanding any other law, if, after the
effective date of this section, the President or any other member of
the Executive branch causes exports from the United States to any
country to be unilaterally suspended for reasons of national security
or foreign policy, and if within 180 days after the date on which the
suspension is imposed on United States exports no other country agrees
to participate in the suspension, the Secretary shall carry out a trade
compensation and assistance program in accordance with this section
(referred to in this section as a `program').
``(b) Provision of Funds.--Under a program, the Secretary shall
make available for each fiscal year funds of the Commodity Credit
Corporation, in an amount calculated under subsection (c), to promote
agricultural exports or provide agricultural commodities to developing
countries, under any authorities available to the Secretary.
``(c) Determination of Amount of Funds.--For each fiscal year of a
program, the amount of funds made available under subsection (b) shall
be equal to 90 percent of the average annual value of United States
agricultural exports to the country with respect to which exports are
suspended during the most recent 3 years prior to the suspension for
which data are available.
``(d) Duration of Program.--
``(1) In general.--For each suspension of exports for which
a program is implemented under this section, funds shall be
made available under subsection (b) for each fiscal year or
part of a fiscal year for which the suspension is in effect,
but not to exceed 2 fiscal years.
``(2) Partial-year embargoes.--Regardless of whether an
embargo is in effect for only part of a fiscal year, the full
amount of funds as calculated under subsection (c) shall be
made available under a program for the fiscal year. If the
Secretary determines that making the required amount of funds
available in a partial fiscal year is impracticable, the
Secretary may make all or part of the funds required to be made
available in the partial fiscal year available in the following
fiscal year (in addition to any funds otherwise required under
a program to be made available in the following fiscal
year).''.
SEC. 249. FOREIGN AGRICULTURAL SERVICE.
Section 503 of the Agricultural Trade Act of 1978 (7 U.S.C. 5693)
is amended to read as follows:
``SEC. 503. ESTABLISHMENT OF THE FOREIGN AGRICULTURAL SERVICE.
``The Service shall assist the Secretary in carrying out the
agricultural trade policy and international cooperation policy of the
United States by--
``(1) acquiring information pertaining to agricultural
trade;
``(2) carrying out market promotion and development
activities;
``(3) providing agricultural technical assistance and
training; and
``(4) carrying out the programs authorized under this Act,
the Agricultural Trade Development and Assistance Act of 1954
(7 U.S.C. 1691 et seq.), and other Acts.''.
SEC. 250. REPORTS.
The first sentence of section 603 of the Agricultural Trade Act of
1978 (7 U.S.C. 5713) is amended by striking ``The'' and inserting
``Subject to section 217 of the Department of Agriculture
Reorganization Act of 1994 (7 U.S.C. 6917), the''.
Subtitle C--Miscellaneous
SEC. 251. REPORTING REQUIREMENTS RELATING TO TOBACCO.
Section 214 of the Tobacco Adjustment Act of 1983 (7 U.S.C. 509) is
repealed.
SEC. 252. TRIGGERED EXPORT ENHANCEMENT.
(a) Readjustment of Support Levels.--Section 1302 of the Omnibus
Budget Reconciliation Act of 1990 (Public Law 101-508; 7 U.S.C. 1421
note) is repealed.
(b) Triggered Marketing Loans and Export Enhancement.--Section 4301
of the Omnibus Trade and Competitiveness Act of 1988 (Public Law 100-
418; 7 U.S.C. 1446 note) is repealed.
(c) Effective Date.--The amendments made by this section shall be
effective beginning with the 1996 crops of wheat, feed grains, upland
cotton, and rice.
SEC. 253. DISPOSITION OF COMMODITIES TO PREVENT WASTE.
Section 416 of the Agricultural Act of 1949 (7 U.S.C. 1431) is
amended--
(1) in subsection (b)--
(A) in paragraph (1), by inserting after the first
sentence the following: ``The Secretary may use funds
of the Commodity Credit Corporation to cover
administrative expenses of the programs.'';
(B) in paragraph (7)(D)(iv), by striking ``one year
of acquisition'' and all that follows and inserting the
following: ``a reasonable length of time, as determined
by the Secretary, except that the Secretary may permit
the use of proceeds in a country other than the country
of origin--
``(I) as necessary to expedite the transportation
of commodities and products furnished under this
subsection; or
``(II) if the proceeds are generated in a currency
generally accepted in the other country.'';
(C) in paragraph (8), by striking subparagraph (C);
and
(D) by striking paragraphs (10), (11), and (12);
and
(2) by striking subsection (c).
SEC. 254. DIRECT SALES OF DAIRY PRODUCTS.
Section 106 of the Agriculture and Food Act of 1981 (7 U.S.C.
1446c-1) is repealed.
SEC. 255. EXPORT SALES OF DAIRY PRODUCTS.
Section 1163 of the Food Security Act of 1985 (Public Law 99-198; 7
U.S.C. 1731 note) is repealed.
SEC. 256. DEBT-FOR-HEALTH-AND-PROTECTION SWAP.
(a) In General.--Section 1517 of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 1706) is repealed.
(b) Conforming Amendment.--Subsection (e)(3) of the Food for
Progress Act of 1985 (7 U.S.C. 1736o(e)(3)) is amended by striking
``section 106'' and inserting ``section 103''.
SEC. 257. POLICY ON EXPANSION OF INTERNATIONAL MARKETS.
Section 1207 of the Agriculture and Food Act of 1981 (7 U.S.C.
1736m) is repealed.
SEC. 258. POLICY ON MAINTENANCE AND DEVELOPMENT OF EXPORT MARKETS.
Section 1121 of the Food Security Act of 1985 (7 U.S.C. 1736p) is
amended--
(1) by striking subsection (a); and
(2) in subsection (b)--
(A) by striking ``(b)''; and
(B) by striking paragraphs (1) through (4) and
inserting the following:
``(1) be the premier supplier of agricultural and food
products to world markets and expand exports of high value
products;
``(2) support the principle of free trade and the promotion
of fair trade in agricultural commodities and products;
``(3) cooperate fully in all efforts to negotiate with
foreign countries further reductions in tariff and nontariff
barriers to trade, including sanitary and phytosanitary
measures and trade-distorting subsidies;
``(4) aggressively counter unfair foreign trade practices
as a means of encouraging fairer trade;''.
SEC. 259. POLICY ON TRADE LIBERALIZATION.
Section 1122 of the Food Security Act of 1985 (7 U.S.C. 1736q) is
repealed.
SEC. 260. AGRICULTURAL TRADE NEGOTIATIONS.
Section 1123 of the Food Security Act of 1985 (7 U.S.C. 1736r) is
amended to read as follows:
``SEC. 1123. TRADE NEGOTIATIONS POLICY.
``(a) Findings.--Congress finds that--
``(1) on a level playing field, United States producers are
the most competitive suppliers of agricultural products in the
world;
``(2) exports of United States agricultural products will
account for $53,000,000,000 in 1995, contributing a net
$24,000,000,000 to the merchandise trade balance of the United
States and supporting approximately 1,000,000 jobs;
``(3) increased agricultural exports are critical to the
future of the farm, rural, and overall United States economy,
but the opportunities for increased agricultural exports are
limited by the unfair subsidies of the competitors of the
United States, and a variety of tariff and nontariff barriers
to highly competitive United States agricultural products;
``(4) international negotiations can play a key role in
breaking down barriers to United States agricultural exports;
``(5) the Uruguay Round Agreement on Agriculture made
significant progress in the attainment of increased market
access opportunities for United States exports of agricultural
products, for the first time--
``(A) restraining foreign trade-distorting domestic
support and export subsidy programs; and
``(B) developing common rules for the application
of sanitary and phytosanitary restrictions;
that should result in increased exports of United States
agricultural products, jobs, and income growth in the United
States;
``(6) the Uruguay Round Agreement on Agriculture did not
succeed in completely eliminating trade distorting domestic
support and export subsidies by--
``(A) allowing the European Union to continue
unreasonable levels of spending on export subsidies;
and
``(B) failing to discipline monopolistic state
trading entities, such as the Canadian Wheat Board,
that use nontransparent and discriminatory pricing as a
hidden de facto export subsidy;
``(7) during the period 1996 through 2002, there will be
several opportunities for the United States to negotiate fairer
trade in agricultural products, including further negotiations
under the World Trade Organization, and steps toward possible
free trade agreements of the Americas and Asian-Pacific
Economic Cooperation (APEC); and
``(8) the United States should aggressively use these
opportunities to achieve more open and fair opportunities for
trade in agricultural products.
``(b) Goals of the United States in Agricultural Trade
Negotiations.--The objectives of the United States with respect to
future negotiations on agricultural trade include--
``(1) increasing opportunities for United States exports of
agricultural products by eliminating or substantially reducing
tariff and nontariff barriers to trade;
``(2) leveling the playing field for United States
producers of agricultural products by limiting per unit
domestic production supports to levels that are no greater than
those available in the United States;
``(3) ending the practice of export dumping by eliminating
all trade distorting export subsidies and disciplining state
trading entities so that they do not (except in cases of bona
fide food aid) sell in foreign markets at below domestic market
prices nor their full costs of acquiring and delivering
agricultural products to the foreign markets; and
``(4) encouraging government policies that avoid price-
depressing surpluses.''.
SEC. 261. POLICY ON UNFAIR TRADE PRACTICES.
Section 1164 of the Food Security Act of 1985 (Public Law 99-198;
99 Stat. 1499) is repealed.
SEC. 262. AGRICULTURAL AID AND TRADE MISSIONS.
(a) In General.--The Agricultural Aid and Trade Missions Act (7
U.S.C. 1736bb et seq.) is repealed.
(b) Conforming Amendment.--Section 7 of Public Law 100-277 (7
U.S.C. 1736bb note) is repealed.
SEC. 263. ANNUAL REPORTS BY AGRICULTURAL ATTACHES.
Section 108(b)(1)(B) of the Agricultural Act of 1954 (7 U.S.C.
1748(b)(1)(B)) is amended by striking ``including fruits, vegetables,
legumes, popcorn, and ducks''.
SEC. 264. WORLD LIVESTOCK MARKET PRICE INFORMATION.
Section 1545 of the Food, Agriculture, Conservation, and Trade Act
of 1990 (Public Law 101-624; 7 U.S.C. 1761 note) is repealed.
SEC. 265. ORDERLY LIQUIDATION OF STOCKS.
Sections 201 and 207 of the Agricultural Act of 1956 (7 U.S.C. 1851
and 1857) are repealed.
SEC. 266. SALES OF EXTRA LONG STAPLE COTTON.
Section 202 of the Agricultural Act of 1956 (7 U.S.C. 1852) is
repealed.
SEC. 267. REGULATIONS.
Section 707 of the Freedom for Russia and Emerging Eurasian
Democracies and Open Markets Support Act of 1992 (Public Law 102-511; 7
U.S.C. 5621 note) is amended by striking subsection (d).
SEC. 268. EMERGING MARKETS.
(a) Promotion of Agricultural Exports to Emerging Markets.--
(1) Emerging markets.--Section 1542 of the Food,
Agriculture, Conservation, and Trade Act of 1990 (Public Law
101-624; 7 U.S.C. 5622 note) is amended--
(A) in the section heading, by striking ``emerging
democracies'' and inserting ``emerging markets'';
(B) by striking ``emerging democracies'' each place
it appears in subsections (b), (d), and (e) and
inserting ``emerging markets'';
(C) by striking ``emerging democracy'' each place
it appears in subsection (c) and inserting ``emerging
market''; and
(D) by striking subsection (f) and inserting the
following:
``(f) Emerging Market.--In this section and section 1543, the term
`emerging market' means any country that the Secretary determines--
``(1) is taking steps toward a market-oriented economy
through the food, agriculture, or rural business sectors of the
economy of the country; and
``(2) has the potential to provide a viable and significant
market for United States agricultural commodities or products
of United States agricultural commodities.''.
(2) Funding.--Section 1542 of the Food, Agriculture,
Conservation, and Trade Act of 1990 is amended by striking
subsection (a) and inserting the following:
``(a) Funding.--The Commodity Credit Corporation shall make
available for fiscal years 1996 through 2002 not less than
$1,000,000,000 of direct credits or export credit guarantees for
exports to emerging markets under section 201 or 202 of the
Agricultural Trade Act of 1978 (7 U.S.C. 5621 and 5622), in addition to
the amounts acquired or authorized under section 211 of the Act (7
U.S.C. 5641) for the program.''.
(3) Agricultural fellowship program.--Section 1542 of the
Food, Agriculture, Conservation, and Trade Act of 1990 is
amended--
(A) in subsection (b), by striking the last
sentence and inserting the following: ``The Commodity
Credit Corporation shall give priority under this
subsection to--
``(A) projects that encourage the privatization of the
agricultural sector or that benefit private farms or
cooperatives in emerging markets; and
``(B) projects for which nongovernmental persons agree to
assume a relatively larger share of the costs.''; and
(B) in subsection (d)--
(i) in the matter preceding paragraph (1),
by striking ``the Soviet Union'' and inserting
``emerging markets'';
(ii) in paragraph (1)--
(I) in subparagraph (A)(i)--
(aa) by striking ``1995''
and inserting ``2002''; and
(bb) by striking ``those
systems, and identify'' and
inserting ``the systems,
including potential reductions
in trade barriers, and identify
and carry out'';
(II) in subparagraph (B), by
striking ``shall'' and inserting
``may'';
(III) in subparagraph (D), by
inserting ``(including the
establishment of extension services)''
after ``technical assistance'';
(IV) by striking subparagraph (F);
(V) by redesignating subparagraphs
(G), (H), and (I) as subparagraphs (F),
(G), and (H), respectively; and
(VI) in subparagraph (H) (as
redesignated by subclause (V)), by
striking ``$10,000,000'' and inserting
``$20,000,000'';
(iii) in paragraph (2)--
(I) by striking ``the Soviet
Union'' each place it appears and
inserting ``emerging markets'';
(II) in subparagraph (A), by
striking ``a free market food
production and distribution system''
and inserting ``free market food
production and distribution systems'';
(III) in subparagraph (B)--
(aa) in clause (i), by
striking ``Government'' and
inserting ``governments'';
(bb) in clause (iii)(II),
by striking ``and'' at the end;
(cc) in clause (iii)(III),
by striking the period at the
end and inserting ``; and'';
and
(dd) by adding at the end
of clause (iii) the following:
``(IV) to provide for the exchange
of administrators and faculty members
from agricultural and other
institutions to strengthen and revise
educational programs in agricultural
economics, agribusiness, and agrarian
law, to support change towards a free
market economy in emerging markets.'';
(IV) by striking subparagraph (D);
and
(V) by redesignating subparagraph
(E) as subparagraph (D); and
(iv) by striking paragraph (3).
(4) United states agricultural commodity.--Subsections (b)
and (c) of section 1542 of the Food, Agriculture, Conservation,
and Trade Act of 1990 are amended by striking ``section
101(6)'' each place it appears and inserting ``section
102(7)''.
(5) Report.--The first sentence of section 1542(e)(2) of
the Food, Agriculture, Conservation, and Trade Act of 1990 is
amended by striking ``Not'' and inserting ``Subject to section
217 of the Department of Agriculture Reorganization Act of 1994
(7 U.S.C. 6917), not''.
(b) Agricultural Fellowship Program for Middle Income Countries,
Emerging Democracies, and Emerging Markets.--Section 1543 of the Food,
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 3293) is
amended--
(1) in the section heading, by striking ``middle income
countries and emerging democracies'' and inserting ``middle
income countries, emerging democracies, and emerging markets'';
(2) in subsection (b), by adding at the end the following:
``(5) Emerging market.--Any emerging market, as defined in
section 1542(f).''; and
(3) in subsection (c)(1), by striking ``food needs'' and
inserting ``food and fiber needs''.
(c) Conforming Amendments.--
(1) Section 501 of the Agricultural Trade Development and
Assistance Act of 1954 (7 U.S.C. 1737) is amended--
(A) in subsection (a), by striking ``emerging
democracies'' and inserting ``emerging markets''; and
(B) in subsection (b), by striking paragraph (1)
and inserting the following:
``(1) Emerging market.--The term `emerging market' means
any country that the Secretary determines--
``(A) is taking steps toward a market-oriented
economy through the food, agriculture, or rural
business sectors of the economy of the country; and
``(B) has the potential to provide a viable and
significant market for United States agricultural
commodities or products of United States agricultural
commodities.''.
(2) Section 201(d)(1)(C)(ii) of the Agricultural Trade Act
of 1978 (7 U.S.C. 5621(d)(1)(C)(ii)) is amended by striking
``emerging democracies'' and inserting ``emerging markets''.
(3) Section 202(d)(3)(B) of the Agricultural Trade Act of
1978 (7 U.S.C. 5622(d)(3)(B)) is amended by striking ``emerging
democracies'' and inserting ``emerging markets''.
SEC. 269. IMPORT ASSISTANCE FOR CBI BENEFICIARY COUNTRIES AND THE
PHILIPPINES.
Section 583 of Public Law 100-202 (101 Stat. 1329-182) is repealed.
SEC. 270. STUDIES, REPORTS, AND OTHER PROVISIONS.
(a) In General.--Sections 1551 through 1555, section 1559, and
section 1560 of subtitle E of title XV of the Food, Agriculture,
Conservation, and Trade Act of 1990 (Public Law 101-624; 104 Stat.
3696) are repealed.
(b) Language Proficiency.--Section 1556 of the Food, Agriculture,
Conservation, and Trade Act of 1990 (Public Law 101-624; 7 U.S.C. 5694
note) is amended by striking subsection (c).
SEC. 271. IMPLEMENTATION OF COMMITMENTS UNDER URUGUAY ROUND AGREEMENTS.
Part III of subtitle A of title IV of the Uruguay Round Agreements
Act (Public Law 103-465; 108 Stat. 4964) is amended by adding at the
end the following:
``SEC. 427. IMPLEMENTATION OF COMMITMENTS UNDER URUGUAY ROUND
AGREEMENTS.
``Not later than September 30 of each fiscal year, the Secretary of
Agriculture shall determine whether the obligations undertaken by
foreign countries under the Uruguay Round Agreement on Agriculture are
being fully implemented. If the Secretary of Agriculture determines
that any foreign country, by not implementing the obligations of the
country, is significantly constraining an opportunity for United States
agricultural exports, the Secretary shall--
``(1) submit to the United States Trade Representative a
recommendation as to whether the President should take action
under any provision of law; and
``(2) transmit a copy of the recommendation to the
Committee on Agriculture, and the Committee on Ways and Means,
of the House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry, and the Committee on
Finance, of the Senate.''.
SEC. 272. SENSE OF CONGRESS CONCERNING MULTILATERAL DISCIPLINES ON
CREDIT GUARANTEES.
It is the sense of Congress that--
(1) in negotiations to establish multilateral disciplines
on agricultural export credits and credit guarantees, the
United States should not agree to any arrangement that is
incompatible with the provisions of United States law that
authorize agricultural export credits and credit guarantees;
(2) in the negotiations (which are held under the auspices
of the Organization for Economic Cooperation and Development),
the United States should not reach any agreement that fails to
impose disciplines on the practices of foreign government
trading entities such as the Australian Wheat Board and
Canadian Wheat Board; and
(3) the disciplines should include greater openness in the
operations of the entities as long as the entities are
subsidized by the foreign government or have monopolies for
exports of a commodity that are sanctioned by the foreign
government.
SEC. 273. FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM.
The Agricultural Trade Act of 1978 (7 U.S.C. 5601 et seq.) is
amended by adding at the end the following:
``TITLE VII--FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM
``SEC. 701. DEFINITION OF ELIGIBLE TRADE ORGANIZATION.
``In this title, the term `eligible trade organization' means a
United States trade organization that--
``(1) promotes the export of 1 or more United States
agricultural commodities or products; and
``(2) does not have a business interest in or receive
remuneration from specific sales of agricultural commodities or
products.
``SEC. 702. FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM.
``(a) In General.--The Secretary shall establish and, in
cooperation with eligible trade organizations, carry out a foreign
market development cooperator program to maintain and develop foreign
markets for United States agricultural commodities and products.
``(b) Administration.--Funds made available to carry out this title
shall be used only to provide--
``(1) cost-share assistance to an eligible trade
organization under a contract or agreement with the
organization; and
``(2) assistance for other costs that are necessary or
appropriate to carry out the foreign market development
cooperator program, including contingent liabilities that are
not otherwise funded.
``SEC. 703. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out this title
such sums as may be necessary for each of fiscal years 1996 through
2002.''.
SEC. 274. PRICE SUPPORT FOR RICE.
Section 101 of the Agricultural Act of 1949 is amended by adding a
subsection (e) that reads as follows:
``(e) Rice.--The Secretary shall make available to producers of
each crop of rice on a farm price support at a level that is not less
than 50%, or more than 90% of the parity price for rice as the
Secretary determines will not result in increasing stocks of rice to
the Commodity Credit Corporation.''.
TITLE III--CONSERVATION
Subtitle A--Definitions
SEC. 301. DEFINITIONS.
Section 1201(a) of the Food Security Act of 1985 (16 U.S.C.
3801(a)) is amended--
(1) by redesignating paragraphs (3) through (16) as
paragraphs (4) through (17), respectively; and
(2) by inserting after paragraph (2) the following:
``(3) Conservation system.--The term `conservation system'
means the conservation measures and practices that are approved
for application by a producer to a highly erodible field and
that provide for cost effective and practical erosion reduction
on the field based on local resource conditions and standards
contained in the Natural Resources Conservation Service field
office technical guide.''.
Subtitle B--Environmental Conservation Acreage Reserve Program
SEC. 311. ENVIRONMENTAL CONSERVATION ACREAGE RESERVE PROGRAM.
Section 1230 of the Food Security Act of 1985 (16 U.S.C. 3830) is
amended to read as follows:
``SEC. 1230. ENVIRONMENTAL CONSERVATION ACREAGE RESERVE PROGRAM.
``(a) Establishment.--
``(1) In general.--During the 1996 through 2002 calendar
years, the Secretary shall establish an environmental
conservation acreage reserve program (referred to in this
section as `ECARP') to be implemented through contracts and the
acquisition of easements to assist owners and operators of
farms and ranches to conserve and enhance soil, water, and
related natural resources, including grazing land, wetland, and
wildlife habitat.
``(2) Means.--The Secretary shall carry out the ECARP by--
``(A) providing for the long-term protection of
environmentally sensitive land; and
``(B) providing technical and financial assistance
to farmers and ranchers to--
``(i) improve the management and operation
of the farms and ranches; and
``(ii) reconcile productivity and
profitability with protection and enhancement
of the environment.
``(3) Programs.--The ECARP shall consist of--
``(A) the conservation reserve program established
under subchapter B;
``(B) the wetlands reserve program established
under subchapter C;
``(C) the environmental quality incentives program
established under chapter 4; and
``(D) a farmland protection program under which the
Secretary shall use funds of the Commodity Credit
Corporation for the purchase of conservation easements
or other interests in not less than 170,000, nor more
than 340,000, acres of land with prime, unique, or
other productive soil that is subject to a pending
offer from a State or local government for the purpose
of protecting topsoil by limiting nonagricultural uses
of the land, except that any highly erodible cropland
shall be subject to the requirements of a conservation
plan, including, if required by the Secretary, the
conversion of the land to less intensive uses. In no
case shall total expenditures of funding from the
Commodity Credit Corporation exceed a total of
$35,000,000 over the first 3 and subsequent fiscal
years.
``(b) Administration.--
``(1) In general.--In carrying out the ECARP, the Secretary
shall enter into contracts with owners and operators and
acquire interests in land through easements from owners, as
provided in this chapter and chapter 4.
``(2) Prior enrollments.--Acreage enrolled in the
conservation reserve or wetlands reserve program prior to the
effective date of this paragraph shall be considered to be
placed into the ECARP.
``(c) Conservation Priority Areas.--
``(1) Designation.--
``(A) In general.--The Secretary shall designate
watersheds or regions of special environmental
sensitivity, including the Chesapeake Bay Region
(consisting of Pennsylvania, Maryland, and Virginia),
the Great Lakes Region, the Rainwater Basin Region, the
Lake Champlain Basin, the Prairie Pothole Region, and
the Long Island Sound Region, as conservation priority
areas that are eligible for enhanced assistance through
the programs established under this chapter and chapter
4.
``(B) Application.--A designation shall be made
under this paragraph if agricultural practices on land
within the watershed or region pose a significant
threat to soil, water, and related natural resources,
as determined by the Secretary, and an application is
made by--
``(i) a State agency in consultation with
the State technical committee established under
section 1261; or
``(ii) State agencies from several States
that agree to form an interstate conservation
priority area.
``(C) Assistance.--The Secretary shall designate a
watershed or region of special environmental
sensitivity as a conservation priority area to assist,
to the maximum extent practicable, agricultural
producers within the watershed or region to comply with
nonpoint source pollution requirements under the
Federal Water Pollution Control Act (33 U.S.C. 1251 et
seq.) and other Federal and State environmental laws.
``(2) Applicability.--The Secretary shall designate a
watershed or region of special environmental sensitivity as a
conservation priority area in a manner that conforms, to the
maximum extent practicable, to the functions and purposes of
the conservation reserve, wetlands reserve, and environmental
quality incentives programs, as applicable, if participation in
the program or programs is likely to result in the resolution
or amelioration of significant soil, water, and related natural
resource problems related to agricultural production activities
within the watershed or region.
``(3) Termination.--A conservation priority area
designation shall terminate on the date that is 5 years after
the date of the designation, except that the Secretary may--
``(A) redesignate the area as a conservation
priority area; or
``(B) withdraw the designation of a watershed or
region if the Secretary determines the area is no
longer affected by significant soil,water, and related
natural resource impacts related to agricultural
production activities.''.
SEC. 312. CONSERVATION RESERVE PROGRAM.
(a) In General.--Section 1231 of the Food Security Act of 1985 (16
U.S.C. 3831) is amended--
(1) by striking ``1995'' each place it appears and
inserting ``2002''; and
(2) in subsection (d), by striking ``38,000,000'' and
inserting ``36,520,000''.
(b) Duties of Owners and Operators.--Section 1232(c) of the Food
Security Act of 1985 (16 U.S.C. 3832(c)) is amended by striking
``1995'' and inserting ``2002''.
(c) Relationship to Other Law.--The authority granted to the
Secretary of Agriculture as a result of the amendments made by this
section shall supersede any restriction on the operation of the
conservation reserve program established under any other provision of
law.
SEC. 313. WETLANDS RESERVE PROGRAM.
(a) Purposes.--Section 1237(a) of the Food Security Act of 1985 (16
U.S.C. 3837(a)) is amended by striking ``to assist owners of eligible
lands in restoring and protecting wetlands'' and inserting ``to protect
wetlands for purposes of enhancing water quality and providing wildlife
benefits while recognizing landowner rights''.
(b) Enrollment.--Section 1237 of the Food Security Act of 1985 (16
U.S.C. 3837) is amended by striking subsection (b) and inserting the
following:
``(b) Minimum Enrollment.--The Secretary shall enroll into the
wetlands reserve program--
``(1) during the 1996 through 2002 calendar years, a total
of not more than 975,000 acres; and
``(2) beginning with offers accepted by the Secretary
during calendar year 1997, to the maximum extent practicable,
\1/3\ of the acres in permanent easements, \1/3\ of the acres
in 30-year easements, and \1/3\ of the acres in restoration
cost-share agreements.''.
(c) Eligibility.--Section 1237(c) of the Food Security Act of 1985
(16 U.S.C. 3837(c)) is amended--
(1) by striking ``2000'' and inserting ``2002''; and
(2) by inserting ``the land maximizes wildlife benefits and
wetland values and functions and'' after ``determines that''.
(d) Other Eligible Lands.--Section 1237(d) (16 U.S.C. 3837(d)) is
amended by inserting after ``subsection (c)'' the following ``, land
that maximizes wildlife benefits and that is''.
(e) Easements.--Section 1237A of the Food Security Act of 1985 (16
U.S.C. 3837a) is amended--
(1) in the section heading, by inserting before the period
at the end the following: ``and agreements'';
(2) by striking subsection (c) and inserting the following:
``(c) Restoration Plans.--The development of a restoration plan,
including any compatible use, under this section shall be made through
the local Natural Resources Conservation Service representative, in
consultation with the State technical committee.'';
(3) in subsection (f), by striking the third sentence and
inserting the following: ``Compensation may be provided in not
less than 5, nor more than 30, annual payments of equal or
unequal size, as agreed to by the owner and the Secretary.'';
and
(4) by adding at the end the following:
``(h) Cost Share Agreements.--The Secretary may enroll land into
the wetland reserve through agreements that require the landowner to
restore wetlands on the land, if the agreement does not provide the
Secretary with an easement.''.
(f) Cost Share and Technical Assistance.--Section 1237C of the Food
Security Act of 1985 (16 U.S.C. 3837c) is amended by striking
subsection (b) and inserting the following:
``(b) Cost Share and Technical Assistance.--In the case of an
easement entered into during the 1996 through 2002 calendar years, in
making cost share payments under subsection (a)(1), the Secretary
shall--
``(1) in the case of a permanent easement, pay the owner an
amount that is not less than 75 percent, but not more than 100
percent, of the eligible costs;
``(2) in the case of a 30-year easement or a cost-share
agreement, pay the owner an amount that is not less than 50
percent, but not more than 75 percent, of the eligible costs;
and
``(3) provide owners technical assistance to assist
landowners in complying with the terms of easements and
agreements.''.
SEC. 314. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM.
Subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C.
3830 et seq.) is amended by adding at the end the following:
``CHAPTER 4--ENVIRONMENTAL QUALITY INCENTIVES PROGRAM
``SEC. 1238. FINDINGS AND PURPOSES.
``(a) Findings.--Congress finds that--
``(1) farmers and ranchers cumulatively manage more than
\1/2\ of the private lands in the continental United States;
``(2) because of the predominance of agriculture, the soil,
water, and related natural resources of the United States
cannot be protected without cooperative relationships between
the Federal Government and farmers and ranchers;
``(3) farmers and ranchers have made tremendous progress in
protecting the environment and the agricultural resource base
of the United States over the past decade because of not only
Federal Government programs but also their spirit of
stewardship and the adoption of effective technologies;
``(4) it is in the interest of the entire United States
that farmers and ranchers continue to strive to preserve soil
resources and make more efforts to protect water quality and
wildlife habitat, and address other broad environmental
concerns;
``(5) environmental strategies that stress the prudent
management of resources, as opposed to idling land, will permit
the maximum economic opportunities for farmers and ranchers in
the future;
``(6) unnecessary bureaucratic and paperwork barriers
associated with existing agricultural conservation assistance
programs decrease the potential effectiveness of the programs;
and
``(7) the recent trend of Federal spending on agricultural
conservation programs suggests that assistance to farmers and
ranchers in future years will, absent changes in policy,
dwindle to perilously low levels.
``(b) Purposes.--The purposes of the environmental quality
incentives program established by this chapter are to--
``(1) combine into a single program the functions of--
``(A) the agricultural conservation program
authorized by sections 7 and 8 of the Soil Conservation
and Domestic Allotment Act (16 U.S.C. 590g and 590h)
(as in effect before the amendments made by section
355(a)(1) of the Agricultural Reform and Improvement
Act of 1996);
``(B) the Great Plains conservation program
established under section 16(b) of the Soil
Conservation and Domestic Allotment Act (16 U.S.C.
590p(b)) (as in effect before the amendment made by
section 355(b)(1) of the Agricultural Reform and
Improvement Act of 1996); and
``(C) the water quality incentives program
established under chapter 2 (as in effect before the
amendment made by section 355(k) of the Agricultural
Reform and Improvement Act of 1996); and
``(C) the Colorado River Basin salinity control
program established under section 202(c) of the
Colorado River Basin Salinity Control Act (43 U.S.C.
1592(c)) (as in effect before the amendment made by
section 355(c)(1) of the Agricultural Reform and
Improvement Act of 1996); and
``(2) carry out the single program in a manner that
maximizes environmental benefits per dollar expended, and that
provides--
``(A) flexible technical and financial assistance
to farmers and ranchers that face the most serious
threats to soil, water, and related natural resources,
including grazing lands, wetlands, and wildlife
habitat;
``(B) assistance to farmers and ranchers in
complying with this title and Federal and State
environmental laws, and to encourage environmental
enhancement;
``(C) assistance to farmers and ranchers in making
beneficial, cost-effective changes to cropping systems,
grazing management, manure, nutrient, pest, or
irrigation management, land uses, or other measures
needed to conserve and improve soil, water, and related
natural resources; and
``(D) for the consolidation and simplification of
the conservation planning process to reduce
administrative burdens on the owners and operators of
farms and ranches.
``SEC. 1238A. DEFINITIONS.
``In this chapter:
``(1) Land management practice.--The term `land management
practice' means nutrient or manure management, integrated pest
management, irrigation management, tillage or residue
management, grazing management, or another land management
practice the Secretary determines is needed to protect soil,
water, or related resources in the most cost effective manner.
``(2) Large confined livestock operation.--The term `large
confined livestock operation' means a farm or ranch that--
``(A) is a confined animal feeding operation; and
``(B) has more than--
``(i) 700 mature dairy cattle;
``(ii) 1,000 beef cattle;
``(iii) 100,000 laying hens or broilers;
``(iv) 55,000 turkeys;
``(v) 2,500 swine; or
``(vi) 10,000 sheep or lambs.
``(3) Livestock.--The term `livestock' means mature dairy
cows, beef cattle, laying hens, broilers, turkeys, swine,
sheep, or lambs.
``(4) Operator.--The term `operator' means a person who is
engaged in crop or livestock production (as defined by the
Secretary).
``(5) Structural practice.--The term `structural practice'
means the establishment of an animal waste management facility,
terrace, grassed waterway, contour grass strip, filterstrip,
permanent wildlife habitat, or another structural practice that
the Secretary determines is needed to protect soil, water, or
related resources in the most cost effective manner.
``SEC. 1238B. ESTABLISHMENT AND ADMINISTRATION OF ENVIRONMENTAL QUALITY
INCENTIVES PROGRAM.
``(a) Establishment.--
``(1) In general.--During the 1996 through 2002 fiscal
years, the Secretary shall provide technical assistance, cost-
sharing payments, and incentive payments, education to
operators, who enter into contracts with the Secretary, through
an environmental quality incentives program in accordance with
this chapter.
``(2) Eligible practices.--
``(A) Structural practices.--An operator who
implements a structural practice shall be eligible for
technical assistance or cost-sharing payments,
education or both.
``(B) Land management practices.--An operator who
performs a land management practice shall be eligible
for technical assistance or incentive payments,
education or both.
``(b) Application and Term.--A contract between an operator and the
Secretary under this chapter may--
``(1) apply to 1 or more structural practices or 1 or more
land management practices, or both; and
``(2) have a term of not less than 5, nor more than 10,
years, as determined appropriate by the Secretary, depending on
the practice or practices that are the basis of the contract.
``(c) Structural Practices.--
``(1) Competitive offer.--The Secretary shall administer a
competitive offer system for operators proposing to receive
cost-sharing payments in exchange for the implementation of 1
or more structural practices by the operator. The competitive
offer system shall consist of--
``(A) the submission of a competitive offer by the
operator in such manner as the Secretary may prescribe;
and
``(B) evaluation of the offer in light of the
priorities established in section 1238C and the
projected cost of the proposal, as determined by the
Secretary.
``(2) Concurrence of owner.--If the operator making an
offer to implement a structural practice is a tenant of the
land involved in agricultural production, for the offer to be
acceptable, the operator shall obtain the concurrence of the
owner of the land with respect to the offer.
``(d) Land Management Practices.--The Secretary shall establish an
application and evaluation process for awarding technical assistance or
incentive payments, or both, to an operator in exchange for the
performance of 1 or more land management practices by the operator.
``(e) Cost-Sharing and Incentive Payments.--
``(1) Cost-sharing payments.--
``(A) In general.--The Federal share of cost-
sharing payments to an operator proposing to implement
1 or more structural practices shall not be more than
75 percent of the projected cost of the practice, as
determined by the Secretary, taking into consideration
any payment received by the operator from a State or
local government.
``(B) Limitation.--An operator of a large confined
livestock operation shall not be eligible for cost-
sharing payments to construct an animal waste
management facility.
``(C) Other payments.--An operator shall not be
eligible for cost-sharing payments for structural
practices on eligible land under this chapter if the
operator receives cost-sharing payments or other
benefits for the same land under chapter 1 or 3.
``(2) Incentive payments.--The Secretary shall make
incentive payments in an amount and at a rate determined by the
Secretary to be necessary to encourage an operator to perform 1
or more land management practices.
``(f) Technical Assistance.--
``(1) Funding.--The Secretary shall allocate funding under
this chapter for the provision of technical assistance
according to the purpose and projected cost for which the
technical assistance is provided in a fiscal year. The
allocated amount may vary according to the type of expertise
required, quantity of time involved, and other factors as
determined appropriate by the Secretary. Funding shall not
exceed the projected cost to the Secretary of the technical
assistance provided in a fiscal year.
``(2) Other authorities.--The receipt of technical
assistance under this chapter shall not affect the eligibility
of the operator to receive technical assistance under other
authorities of law available to the Secretary.
``(g) Modification or Termination of Contracts.--
``(1) Voluntary modification or termination.--The Secretary
may modify or terminate a contract entered into with an
operator under this chapter if--
``(A) the operator agrees to the modification or
termination; and
``(B) the Secretary determines that the
modification or termination is in the public interest.
``(2) Involuntary termination.--The Secretary may terminate
a contract under this chapter if the Secretary determines that
the operator violated the contract.
``(h) Non-Federal Assistance.--
``(1) In general.--The Secretary may request the services
of a State water quality agency, State fish and wildlife
agency, State forestry agency, or any other governmental or
private resource considered appropriate to assist in providing
the technical assistance necessary for the development and
implementation of a structural practice or land management
practice.
``(2) Limitation on liability.--No person shall be
permitted to bring or pursue any claim or action against any
official or entity based on or resulting from any technical
assistance provided to an operator under this chapter to assist
in complying with a Federal or State environmental law.
``SEC. 1238C. EVALUATION OF OFFERS AND PAYMENTS.
``(a) Regional Priorities.--The Secretary shall provide technical
assistance, cost-sharing payments, and incentive payments to operators
in a region, watershed, or conservation priority area under this
chapter based on the significance of the soil, water, and related
natural resource problems in the region, watershed, or area, and the
structural practices or land management practices that best address the
problems, as determined by the Secretary.
``(b) Maximization of Environmental Benefits.--
``(1) In general.--In providing technical assistance, cost-
sharing payments, and incentive payments to operators in
regions, watersheds, or conservation priority areas under this
chapter, the Secretary shall accord a higher priority to
assistance and payments that maximize environmental benefits
per dollar expended.
``(2) National and regional priority.--The prioritization
shall be done nationally as well as within the conservation
priority area, region, or watershed in which an agricultural
operation is located.
``(3) Criteria.--To carry out this subsection, the
Secretary shall establish criteria for implementing structural
practices and land management practices that best achieve
conservation goals for a region, watershed, or conservation
priority area, as determined by the Secretary.
``(c) State or Local Contributions.--The Secretary shall accord a
higher priority to operators whose agricultural operations are located
within watersheds, regions, or conservation priority areas in which
State or local governments have provided, or will provide, financial or
technical assistance to the operators for the same conservation or
environmental purposes.
``(d) Priority Lands.--The Secretary shall accord a higher priority
to structural practices or land management practices on lands on which
agricultural production has been determined to contribute to, or
create, the potential for failure to meet applicable water quality
standards or other environmental objectives of a Federal or State law.
``SEC. 1238D. DUTIES OF OPERATORS.
``To receive technical assistance, cost-sharing payments, or
incentives payments under this chapter, an operator shall agree--
``(1) to implement an environmental quality incentives
program plan that describes conservation and environmental
goals to be achieved through a structural practice or land
management practice, or both, that is approved by the
Secretary;
``(2) not to conduct any practices on the farm or ranch
that would tend to defeat the purposes of this chapter;
``(3) on the violation of a term or condition of the
contract at any time the operator has control of the land, to
refund any cost-sharing or incentive payment received with
interest, and forfeit any future payments under this chapter,
as determined by the Secretary;
``(4) on the transfer of the right and interest of the
operator in land subject to the contract, unless the transferee
of the right and interest agrees with the Secretary to assume
all obligations of the contract, to refund all cost-sharing
payments and incentive payments received under this chapter, as
determined by the Secretary;
``(5) to supply information as required by the Secretary to
determine compliance with the environmental quality incentives
program plan and requirements of the program; and
``(6) to comply with such additional provisions as the
Secretary determines are necessary to carry out the
environmental quality incentives program plan.
``SEC. 1238E. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM PLAN.
``An environmental quality incentives program plan shall include
(as determined by the Secretary)--
``(1) a description of the prevailing farm or ranch
enterprises, cropping patterns, grazing management, cultural
practices, or other information that may be relevant to
conserving and enhancing soil, water, and related natural
resources;
``(2) a description of relevant farm or ranch resources,
including soil characteristics, rangeland types and condition,
proximity to water bodies, wildlife habitat, or other relevant
characteristics of the farm or ranch related to the
conservation and environmental objectives set forth in the
plan;
``(3) a description of specific conservation and
environmental objectives to be achieved;
``(4) to the extent practicable, specific, quantitative
goals for achieving the conservation and environmental
objectives;
``(5) a description of 1 or more structural practices or 1
or more land management practices, or both, to be implemented
to achieve the conservation and environmental objectives;
``(6) a description of the timing and sequence for
implementing the structural practices or land management
practices, or both, that will assist the operator in complying
with Federal and State environmental laws; and
``(7) information that will enable evaluation of the
effectiveness of the plan in achieving the conservation and
environmental objectives, and that will enable evaluation of
the degree to which the plan has been implemented.
``(8) Not withstanding any provision of law, the Secretary
shall ensure that the process of writing, developing, and
assisting in the implementation of plans required in the
programs established under this title be open to individuals in
agribusiness including but not limited to agricultural
producers, representatives from agricultural cooperatives,
agricultural input retail dealers, and certified crop advisers.
This process shall be included in but not limited to programs
and plans established under this title and any other Department
program using incentive, technical assistance, cost-share or
pilot project programs that require plans.
``SEC. 1238F. DUTIES OF THE SECRETARY.
``To the extent appropriate, the Secretary shall assist an operator
in achieving the conservation and environmental goals of an
environmental quality incentives program plan by--
``(1) providing an eligibility assessment of the farming or
ranching operation of the operator as a basis for developing
the plan;
``(2) providing technical assistance in developing and
implementing the plan;
``(3) providing technical assistance, cost-sharing
payments, or incentive payments for developing and implementing
1 or more structural practices or 1 or more land management
practices, as appropriate;
``(4) providing the operator with information, education,
and training to aid in implementation of the plan; and
``(5) encouraging the operator to obtain technical
assistance, cost-sharing payments, or grants from other
Federal, State, local, or private sources.
``SEC. 1238G. ELIGIBLE LANDS.
``Agricultural land on which a structural practice or land
management practice, or both, shall be eligible for technical
assistance, cost-sharing payments, or incentive payments under this
chapter include--
``(1) agricultural land (including cropland, rangeland,
pasture, and other land on which crops or livestock are
produced) that the Secretary determines poses a serious threat
to soil, water, or related resources by reason of the soil
types, terrain, climatic, soil, topographic, flood, or saline
characteristics, or other factors or natural hazards;
``(2) an area that is considered to be critical
agricultural land on which either crop or livestock production
is carried out, as identified in a plan submitted by the State
under section 319 of the Federal Water Pollution Control Act
(33 U.S.C. 1329) as having priority problems that result from
an agricultural nonpoint source of pollution;
``(3) an area recommended by a State lead agency for
protection of soil, water, and related resources, as designated
by a Governor of a State; and
``(4) land that is not located within a designated or
approved area, but that if permitted to continue to be operated
under existing management practices, would defeat the purpose
of the environmental quality incentives program, as determined
by the Secretary.
``SEC. 1238H. LIMITATIONS ON PAYMENTS.
``(a) Payments.--The total amount of cost-sharing and incentive
payments paid to a person under this chapter may not exceed--
``(1) $10,000 for any fiscal year; or
``(2) $50,000 for any multiyear contract.
``(b) Regulations.--The Secretary shall issue regulations that are
consistent with section 1001 for the purpose of--
``(1) defining the term `person' as used in subsection (a);
and
``(2) prescribing such rules as the Secretary determines
necessary to ensure a fair and reasonable application of the
limitations contained in subsection (a).''.
Subtitle C--Conservation Funding
SEC. 321. CONSERVATION FUNDING.
(a) In General.--Subtitle E of title XII of the Food Security Act
of 1985 (16 U.S.C. 3841 et seq.) is amended to read as follows:
``Subtitle E--Funding
``SEC. 1241. FUNDING.
``(a) Mandatory Expenses.--For each of fiscal years 1996 through
2002, the Secretary shall use the funds of the Commodity Credit
Corporation to carry out the programs authorized by--
``(1) subchapter B of chapter 1 of subtitle D (including
contracts extended by the Secretary pursuant to section 1437 of
the Food, Agriculture, Conservation, and Trade Act of 1990
(Public Law 101-624; 16 U.S.C. 3831 note));
``(2) subchapter C of chapter 1 of subtitle D; and
``(3) chapter 4 of subtitle D.
``(b) Environmental Quality Incentives Program.--
``(1) In general.--For each of fiscal years 1996 through
2002, $200,000,000 of the funds of the Commodity Credit
Corporation shall be available for providing technical
assistance, cost-sharing payments, and incentive payments under
the environmental quality incentives program under chapter 4 of
subtitle D.
``(2) Livestock production.--For each of fiscal years 1996
through 2002, 50 percent of the funding available for technical
assistance, cost-sharing payments, and incentive payments under
the environmental quality incentives program shall be targeted
at practices relating to livestock production.
``(c) Advance Appropriations to CCC.--The Secretary may use the
funds of the Commodity Credit Corporation to carry out chapter 3 of
subtitle D, except that the Secretary may not use the funds of the
Corporation unless the Corporation has received funds to cover the
expenditures from appropriations made available to carry out chapter 3
of subtitle D.
``SEC. 1242. ADMINISTRATION.
``(a) Plans.--The Secretary shall, to the extent practicable, avoid
duplication in--
``(1) the conservation plans required for--
``(A) highly erodible land conservation under
subtitle B;
``(B) the conservation reserve program established
under subchapter B of chapter 1 of subtitle D; and
``(C) the wetlands reserve program established
under subchapter C of chapter 1 of subtitle D; and
``(2) the environmental quality incentives program
established under chapter 4 of subtitle D.
``(b) Acreage Limitation.--
``(1) In general.--The Secretary shall not enroll more than
25 percent of the cropland in any county in the programs
administered under the conservation reserve and wetlands
reserve programs established under subchapters B and C,
respectively, of chapter 1 of subtitle D. Not more than 10
percent of the cropland in a county may be subject to an
easement acquired under the subchapters.
``(2) Exception.--The Secretary may exceed the limitations
in paragraph (1) if the Secretary determines that--
``(A) the action would not adversely affect the
local economy of a county; and
``(B) operators in the county are having
difficulties complying with conservation plans
implemented under section 1212.
``(3) Shelterbelts and windbreaks.--The limitations
established under this subsection shall not apply to cropland
that is subject to an easement under chapter 1 or 3 of subtitle
D that is used for the establishment of shelterbelts and
windbreaks.
``(c) Tenant Protection.--Except for a person who is a tenant on
land that is subject to a conservation reserve contract that has been
extended by the Secretary, the Secretary shall provide adequate
safeguards to protect the interests of tenants and sharecroppers,
including provision for sharing, on a fair and equitable basis, in
payments under the programs established under subtitles B through D.
``(d) Regulations.--Not later than 90 days after the effective date
of this subsection, the Secretary shall issue regulations to implement
the conservation reserve and wetlands reserve programs established
under chapter 1 of subtitle D.''.
Subtitle D--National Natural Resources Conservation Foundation
SEC. 331. SHORT TITLE.
This subtitle may be cited as the ``National Natural Resources
Conservation Foundation Act''.
SEC. 332. DEFINITIONS.
In this subtitle (unless the context otherwise requires):
(1) Board.--The term ``Board'' means the Board of Trustees
established under section 334.
(2) Department.--The term ``Department'' means the United
States Department of Agriculture.
(3) Foundation.--The term ``Foundation'' means the National
Natural Resources Conservation Foundation established by
section 333(a).
(4) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture.
SEC. 333. NATIONAL NATURAL RESOURCES CONSERVATION FOUNDATION.
(a) Establishment.--A National Natural Resources Conservation
Foundation is established as a charitable and nonprofit corporation for
charitable, scientific, and educational purposes specified in
subsection (b). The Foundation is not an agency or instrumentality of
the United States.
(b) Purposes.--The purposes of the Foundation are to--
(1) promote innovative solutions to the problems associated
with the conservation of natural resources on private lands,
particularly with respect to agriculture and soil and water
conservation;
(2) promote voluntary partnerships between government and
private interests in the conservation of natural resources;
(3) conduct research and undertake educational activities,
conduct and support demonstration projects, and make grants to
State and local agencies and nonprofit organizations;
(4) provide such other leadership and support as may be
necessary to address conservation challenges, such as the
prevention of excessive soil erosion, enhancement of soil and
water quality, and the protection of wetlands, wildlife
habitat, and strategically important farmland subject to urban
conversion and fragmentation;
(5) encourage, accept, and administer private gifts of
money and real and personal property for the benefit of, or in
connection with, the conservation and related activities and
services of the Department, particularly the Natural Resources
Conservation Service;
(6) undertake, conduct, and encourage educational,
technical, and other assistance, and other activities, that
support the conservation and related programs administered by
the Department (other than activities carried out on National
Forest System lands), particularly the Natural Resources
Conservation Service, except that the Foundation may not
enforce or administer a regulation of the Department; and
(7) raise private funds to promote the purposes of the
Foundation.
(c) Limitations and Conflicts of Interests.--
(1) Political activities.--The Foundation shall not
participate or intervene in a political campaign on behalf of
any candidate for public office.
(2) Conflicts of interest.--No director, officer, or
employee of the Foundation shall participate, directly or
indirectly, in the consideration or determination of any
question before the Foundation affecting--
(A) the financial interests of the director,
officer, or employee; or
(B) the interests of any corporation, partnership,
entity, organization, or other person in which the
director, officer, or employee--
(i) is an officer, director, or trustee; or
(ii) has any direct or indirect financial
interest.
(3) Legislation or government action or policy.--No funds
of the Foundation may be used in any manner for the purpose of
influencing legislation or government action or policy.
(4) Litigation.--No funds of the Foundation may be used to
bring or join an action against the United States or any State.
SEC. 334. COMPOSITION AND OPERATION.
(a) Composition.--The Foundation shall be administered by a Board
of Trustees that shall consist of 9 voting members, each of whom shall
be a United States citizen and not a Federal officer. The Board shall
be composed of--
(1) individuals with expertise in agricultural conservation
policy matters;
(2) a representative of private sector organizations with a
demonstrable interest in natural resources conservation;
(3) a representative of statewide conservation
organizations;
(4) a representative of soil and water conservation
districts;
(5) a representative of organizations outside the Federal
Government that are dedicated to natural resources conservation
education; and
(6) a farmer or rancher.
(b) Nongovernmental Employees.--Service as a member of the Board
shall not constitute employment by, or the holding of, an office of the
United States for the purposes of any Federal law.
(c) Membership.--
(1) Initial members.--The Secretary shall appoint 9 persons
who meet the criteria established under subsection (a) as the
initial members of the Board and designate 1 of the members as
the initial chairperson for a 2-year term.
(2) Terms of office.--
(A) In general.--A member of the Board shall serve
for a term of 3 years, except that the members
appointed to the initial Board shall serve,
proportionately, for terms of 1, 2, and 3 years, as
determined by the Secretary.
(B) Limitation on terms.--No individual may serve
more than 2 consecutive 3-year terms as a member.
(3) Subsequent members.--The initial members of the Board
shall adopt procedures in the constitution of the Foundation
for the nomination and selection of subsequent members of the
Board. The procedures shall require that each member, at a
minimum, meets the criteria established under subsection (a)
and shall provide for the selection of an individual, who is
not a Federal officer or a member of the Board.
(d) Chairperson.--After the appointment of an initial chairperson
under subsection (c)(1), each succeeding chairperson of the Board shall
be elected by the members of the Board for a 2-year term.
(e) Vacancies.--A vacancy on the Board shall be filled by the Board
not later than 60 days after the occurrence of the vacancy.
(f) Compensation.--A member of the Board shall receive no
compensation from the Foundation for the service of the member on the
Board.
(g) Travel Expenses.--While away from the home or regular place of
business of a member of the Board in the performance of services for
the Board, the member shall be allowed travel expenses paid by the
Foundation, including per diem in lieu of subsistence, at the same rate
as a person employed intermittently in the Government service would be
allowed under section 5703 of title 5, United States Code.
SEC. 335. OFFICERS AND EMPLOYEES.
(a) In General.--The Board may--
(1) appoint, hire, and discharge the officers and employees
of the Foundation, other than the appointment of the initial
Executive Director of the Foundation;
(2) adopt a constitution and bylaws for the Foundation that
are consistent with the purposes of the Foundation and this
subtitle; and
(3) undertake any other activities that may be necessary to
carry out this subtitle.
(b) Officers and Employees.--
(1) Appointment and hiring.--An officer or employee of the
Foundation--
(A) shall not, by virtue of the appointment or
employment of the officer or employee, be considered a
Federal employee for any purpose, including the
provisions of title 5, United States Code, governing
appointments in the competitive service, except that
such an individual may participate in the Federal
employee retirement system as if the individual were a
Federal employee; and
(B) may not be paid by the Foundation a salary in
excess of $125,000 per year.
(2) Executive director.--
(A) Initial director.--The Secretary shall appoint
an individual to serve as the initial Executive
Director of the Foundation who shall serve, at the
direction of the Board, as the chief operating officer
of the Foundation.
(B) Subsequent directors.--The Board shall appoint
each subsequent Executive Director of the Foundation
who shall serve, at the direction of the Board, as the
chief operating officer of the Foundation.
(C) Qualifications.--The Executive Director shall
be knowledgeable and experienced in matters relating to
natural resources conservation.
SEC. 336. CORPORATE POWERS AND OBLIGATIONS OF THE FOUNDATION.
(a) In General.--The Foundation--
(1) may conduct business throughout the United States and
the territories and possessions of the United States; and
(2) shall at all times maintain a designated agent who is
authorized to accept service of process for the Foundation, so
that the serving of notice to, or service of process on, the
agent, or mailed to the business address of the agent, shall be
considered as service on or notice to the Foundation.
(b) Seal.--The Foundation shall have an official seal selected by
the Board that shall be judicially noticed.
(c) Powers.--To carry out the purposes of the Foundation under
section 333(b), the Foundation shall have, in addition to the powers
otherwise provided under this subtitle, the usual powers of a
corporation, including the power--
(1) to accept, receive, solicit, hold, administer, and use
any gift, devise, or bequest, either absolutely or in trust, of
real or personal property or any income from, or other interest
in, the gift, devise, or bequest;
(2) to acquire by purchase or exchange any real or personal
property or interest in property, except that funds provided
under section 310 may not be used to purchase an interest in
real property;
(3) unless otherwise required by instrument of transfer, to
sell, donate, lease, invest, reinvest, retain, or otherwise
dispose of any property or income from property;
(4) to borrow money from private sources and issue bonds,
debentures, or other debt instruments, subject to section 339,
except that the aggregate amount of the borrowing and debt
instruments outstanding at any time may not exceed $1,000,000;
(5) to sue and be sued, and complain and defend itself, in
any court of competent jurisdiction, except that a member of
the Board shall not be personally liable for an action in the
performance of services for the Board, except for gross
negligence;
(6) to enter into a contract or other agreement with an
agency of State or local government, educational institution,
or other private organization or person and to make such
payments as may be necessary to carry out the functions of the
Foundation; and
(7) to do any and all acts that are necessary to carry out
the purposes of the Foundation.
(d) Interest in Property.--
(1) In general.--The Foundation may acquire, hold, and
dispose of lands, waters, or other interests in real property
by donation, gift, devise, purchase, or exchange.
(2) Interests in real property.--For purposes of this
subtitle, an interest in real property shall be treated, among
other things, as including an easement or other right for the
preservation, conservation, protection, or enhancement of
agricultural, natural, scenic, historic, scientific,
educational, inspirational, or recreational resources.
(3) Gifts.--A gift, devise, or bequest may be accepted by
the Foundation even though the gift, devise, or bequest is
encumbered, restricted, or subject to a beneficial interest of
a private person if any current or future interest in the gift,
devise, or bequest is for the benefit of the Foundation.
SEC. 337. ADMINISTRATIVE SERVICES AND SUPPORT.
For each of fiscal years 1996 through 1998, the Secretary may
provide, without reimbursement, personnel, facilities, and other
administrative services of the Department to the Foundation.
SEC. 338. AUDITS AND PETITION OF ATTORNEY GENERAL FOR EQUITABLE RELIEF.
(a) Audits.--
(1) In general.--The accounts of the Foundation shall be
audited in accordance with Public Law 88-504 (36 U.S.C. 1101 et
seq.), including an audit of lobbying and litigation activities
carried out by the Foundation.
(2) Conforming amendment.--The first section of Public Law
88-504 (36 U.S.C. 1101) is amended by adding at the end the
following:
``(77) The National Natural Resources Conservation
Foundation.''.
(b) Relief with Respect to Certain Foundation Acts or Failure to
Act.--The Attorney General may petition in the United States District
Court for the District of Columbia for such equitable relief as may be
necessary or appropriate, if the Foundation--
(1) engages in, or threatens to engage in, any act,
practice, or policy that is inconsistent with this subtitle; or
(2) refuses, fails, neglects, or threatens to refuse, fail,
or neglect, to discharge the obligations of the Foundation
under this subtitle.
SEC. 339. RELEASE FROM LIABILITY.
(a) In General.--The United States shall not be liable for any
debt, default, act, or omission of the Foundation. The full faith and
credit of the United States shall not extend to the Foundation.
(b) Statement.--An obligation issued by the Foundation, and a
document offering an obligation, shall include a prominent statement
that the obligation is not directly or indirectly guaranteed, in whole
or in part, by the United States (or an agency or instrumentality of
the United States).
SEC. 340. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Department to be
made available to the Foundation $1,000,000 for each of fiscal years
1997 through 1999 to initially establish and carry out activities of
the Foundation.
Subtitle E--Miscellaneous
SEC. 351. FLOOD RISK REDUCTION.
(a) In General.--During fiscal years 1996 through 2002, the
Secretary of Agriculture (referred to in this section as the
``Secretary'') may enter into a contract with contract acreage under
title I on a farm with land that is frequently flooded.
(b) Duties of Producers.--Under the terms of the contract, with
respect to acres that are subject to the contract, the producer must
agree to--
(1) the termination of any contract acreage;
(2) forgo loans for contract commodities, oilseeds, and
extra long staple cotton;
(3) not apply for crop insurance issued or reinsured by the
Secretary;
(4) comply with applicable wetlands and high erodible land
conservation compliance requirements established under title
XII of the Food Security Act of 1985 (16 U.S.C. 3801 et seq.);
(5) not apply for any conservation program payments from
the Secretary;
(6) not apply for disaster program benefits provided by the
Secretary; and
(7) refund the payments, with interest, issued under the
flood risk reduction contract to the Secretary, if the producer
violates the terms of the contract or if the producer transfers
the property to another person who violates the contract.
(c) Duties of Secretary.--In return for a flood risk reduction
contract entered into by a producer under this section, the Secretary
shall agree to pay the producer for the 1996 through 2002 crops not
more than 95 percent of the projected contract payments under title I,
and not more than 95 percent of the projected payments and subsidies
from the Federal Crop Insurance Corporation.
(d) Commodity Credit Corporation.--The Secretary shall carry out
the program authorized by this section through the Commodity Credit
Corporation.
SEC. 352. FORESTRY.
(a) Forestry Incentives Program.--Section 4 of the Cooperative
Forestry Assistance Act of 1978 (16 U.S.C. 2103) is amended by striking
subsection (k).
(b) Office of International Forestry.--Section 2405 of the Food,
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 6704) is
amended by adding at the end the following:
``(d) Authorization of Appropriations.--There are authorized each
fiscal year such sums as are necessary to carry out this section.''.
SEC. 353. STATE TECHNICAL COMMITTEES.
Section 1261(c) of the Food Security Act of 1985 (16 U.S.C.
3861(c)) is amended--
(1) in paragraph (7), by striking ``and'' at the end;
(2) in paragraph (8), by striking the period at the end and
inserting a semicolon; and
(3) by adding at the end the following:
``(9) agricultural producers;
``(10) other nonprofit organizations with demonstrable
expertise;
``(11) persons knowledgeable about the economic and
environmental impact of conservation techniques and programs;
and
``(12) agribusiness.
SEC. 354. CONSERVATION OF PRIVATE GRAZING LAND.
(a) Findings.--Congress finds that--
(1) privately owned grazing land constitutes nearly \1/2\
of the non-Federal land of the United States and is basic to
the environmental, social, and economic stability of rural
communities;
(2) privately owned grazing land contains a complex set of
interactions among soil, water, air, plants, and animals;
(3) grazing land constitutes the single largest watershed
cover type in the United States and contributes significantly
to the quality and quantity of water available for all of the
many uses of the land;
(4) private grazing land constitutes the most extensive
wildlife habitat in the United States;
(5) private grazing land can provide opportunities for
improved nutrient management from land application of animal
manures and other by-product nutrient resources;
(6) owners and managers of private grazing land need to
continue to recognize conservation problems when the problems
arise and receive sound technical assistance to improve or
conserve grazing land resources to meet ecological and economic
demands;
(7) new science and technology must continually be made
available in a practical manner so owners and managers of
private grazing land may make informed decisions concerning
vital grazing land resources;
(8) agencies of the Department of Agriculture with private
grazing land responsibilities are the agencies that have the
expertise and experience to provide technical assistance,
education, and research to owners and managers of private
grazing land for the long-term productivity and ecological
health of grazing land;
(9) although competing demands on private grazing land
resources are greater than ever before, assistance to private
owners and managers of private grazing land is currently
limited and does not meet the demand and basic need for
adequately sustaining or enhancing the private grazing lands
resources; and
(10) privately owned grazing land can be enhanced to
provide many benefits to all Americans through voluntary
cooperation among owners and managers of the land, local
conservation districts, and the agencies of the Department of
Agriculture responsible for providing assistance to owners and
managers of land and to conservation districts.
(b) Purpose.--It is the purpose of this section to authorize the
Secretary of Agriculture to provide a coordinated technical,
educational, and related assistance program to conserve and enhance
private grazing land resources and provide related benefits to all
citizens of the United States by--
(1) establishing a coordinated and cooperative Federal,
State, and local grazing conservation program for management of
private grazing land;
(2) strengthening technical, educational, and related
assistance programs that provide assistance to owners and
managers of private grazing land;
(3) conserving and improving wildlife habitat on private
grazing land;
(4) conserving and improving fish habitat and aquatic
systems through grazing land conservation treatment;
(5) protecting and improving water quality;
(6) improving the dependability and consistency of water
supplies;
(7) identifying and managing weed, noxious weed, and brush
encroachment problems on private grazing land; and
(8) integrating conservation planning and management
decisions by owners and managers of private grazing land, on a
voluntary basis.
(c) Definitions.--In this section:
(1) Private grazing land.--The term ``private grazing
land'' means privately owned, State-owned, tribally-owned, and
any other non-federally owned rangeland, pastureland, grazed
forest land, and hay land.
(2) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture, acting through the Natural Resources
Conservation Service.
(d) Private Grazing Land Conservation Assistance.--
(1) Assistance to grazing landowners and others.--Subject
to the availability of appropriations, the Secretary shall
establish a voluntary program to provide technical,
educational, and related assistance to owners and managers of
private grazing land and public agencies, through local
conservation districts, to enable the landowners, managers, and
public agencies to voluntarily carry out activities that are
consistent with this section, including--
(A) maintaining and improving private grazing land
and the multiple values and uses that depend on private
grazing land;
(B) implementing grazing land management
technologies;
(C) managing resources on private grazing land,
including--
(i) planning, managing, and treating
private grazing land resources;
(ii) ensuring the long-term sustainability
of private grazing land resources;
(iii) harvesting, processing, and marketing
private grazing land resources; and
(iv) identifying and managing weed, noxious
weed, and brush encroachment problems;
(D) protecting and improving the quality and
quantity of water yields from private grazing land;
(E) maintaining and improving wildlife and fish
habitat on private grazing land;
(F) enhancing recreational opportunities on private
grazing land;
(G) maintaining and improving the aesthetic
character of private grazing lands; and
(H) identifying the opportunities and encouraging
the diversification of private grazing land
enterprises.
(2) Program elements.--
(A) Funding.--The program under paragraph (1) shall
be funded through a specific line-item in the annual
appropriations for the Natural Resources Conservation
Service.
(B) Technical assistance and education.--Personnel
of the Department of Agriculture trained in pasture and
range management shall be made available under the
program to deliver and coordinate technical assistance
and education to owners and managers of private grazing
land, at the request of the owners and managers.
(e) Grazing Technical Assistance Self-Help.--
(1) Findings.--Congress finds that--
(A) there is a severe lack of technical assistance
for grazing producers;
(B) the Federal budget precludes any significant
expansion, and may force a reduction of, current levels
of technical support; and
(C) farmers and ranchers have a history of
cooperatively working together to address common needs
in the promotion of their products and in the drainage
of wet areas through drainage districts.
(2) Establishment of grazing demonstration.--The Secretary
may establish 2 grazing management demonstration districts at
the recommendation of the Grazing Lands Conservation Initiative
Steering Committee.
(3) Procedure.--
(A) Proposal.--Within a reasonable time after the
submission of a request of an organization of farmers
or ranchers engaged in grazing, the Secretary shall
propose that a grazing management district be
established.
(B) Funding.--The terms and conditions of the
funding and operation of the grazing management
district shall be proposed by the producers.
(C) Approval.--The Secretary shall approve the
proposal if the Secretary determines that the
proposal--
(i) is reasonable;
(ii) will promote sound grazing practices;
and
(iii) contains provisions similar to the
provisions contained in the promotion orders in
effect on the effective date of this section.
(D) Area included.--The area proposed to be
included in a grazing management district shall be
determined by the Secretary on the basis of a petition
by farmers or ranchers.
(E) Authorization.--The Secretary may use authority
under the Agricultural Adjustment Act (7 U.S.C. 601 et
seq.), reenacted with amendments by the Agricultural
Marketing Agreement Act of 1937, to operate, on a
demonstration basis, a grazing management district.
(F) Activities.--The activities of a grazing
management district shall be scientifically sound
activities, as determined by the Secretary in
consultation with a technical advisory committee
composed of ranchers, farmers, and technical experts.
(f) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section--
(1) $20,000,000 for fiscal year 1996;
(2) $40,000,000 for fiscal year 1997; and
(3) $60,000,000 for fiscal year 1998 and each subsequent
fiscal year.
SEC. 355. CONFORMING AMENDMENTS.
(a) Agricultural Conservation Program.--
(1) Elimination.--
(A) Section 8 of the Soil Conservation and Domestic
Allotment Act (16 U.S.C. 590h) is amended--
(i) in subsection (b)--
(I) by striking paragraphs (1)
through (4) and inserting the
following:
``(1) Environmental quality incentives program.--The
Secretary shall provide technical assistance, cost share
payments, and incentive payments to operators through the
environmental quality incentives program in accordance with
chapter 2 of subtitle D of the Food Security Act of 1985 (16
U.S.C. 3838 et seq.).''; and
(II) by striking paragraphs (6)
through (8); and
(ii) by striking subsections (d), (e), and
(f).
(B) The first sentence of section 11 of the Soil
Conservation and Domestic Allotment Act (16 U.S.C.
590k) is amended by striking ``performance: Provided
further,'' and all that follows through ``or other
law'' and inserting ``performance''.
(C) Section 14 of the Act (16 U.S.C. 590n) is
amended--
(i) in the first sentence, by striking ``or
8''; and
(ii) by striking the second sentence.
(D) Section 15 of the Act (16 U.S.C. 590o) is
amended--
(i) in the first undesignated paragraph--
(I) in the first sentence, by
striking ``sections 7 and 8'' and
inserting ``section 7''; and
(II) by striking the third
sentence; and
(ii) by striking the second undesignated
paragraph.
(2) Conforming amendments.--
(A) Paragraph (1) of the last proviso of the matter
under the heading ``conservation reserve program''
under the heading ``Soil Bank Programs'' of title I of
the Department of Agriculture and Farm Credit
Administration Appropriation Act, 1959 (72 Stat. 195; 7
U.S.C. 1831a) is amended by striking ``Agricultural
Conservation Program'' and inserting ``environmental
quality incentives program established under chapter 2
of subtitle D of the Food Security Act of 1985 (16
U.S.C. 3838 et seq.)''.
(B) Section 4 of the Cooperative Forestry
Assistance Act of 1978 (16 U.S.C. 2103) is amended by
striking ``as added by the Agriculture and Consumer
Protection Act of 1973'' each place it appears in
subsections (d) and (i) and inserting ``as in effect
before the amendment made by section 355(a)(1) of the
Agricultural Reform and Improvement Act of 1996''.
(C) Section 226(b)(4) of the Department of
Agriculture Reorganization Act of 1994 (7 U.S.C.
6932(b)(4)) is amended by striking ``and the
agricultural conservation program under the Soil
Conservation and Domestic Allotment Act (16 U.S.C. 590g
et seq.)''.
(D) Section 246(b)(8) of the Department of
Agriculture Reorganization Act of 1994 (7 U.S.C.
6962(b)(8)) is amended by striking ``and the
agricultural conservation program under the Soil
Conservation and Domestic Allotment Act (16 U.S.C. 590g
et seq.)''.
(E) Section 1271(c)(3)(C) of the Food, Agriculture,
Conservation, and Trade Act of 1990 (16 U.S.C.
2106a(c)(3)(C)) is amended by striking ``Agricultural
Conservation Program established under section 16(b) of
the Soil Conservation and Domestic Allotment Act (16
U.S.C. 590h, 590l, or 590p)'' and inserting
``environmental quality incentives program established
under chapter 2 of subtitle D of the Food Security Act
of 1985 (16 U.S.C. 3838 et seq.)''.
(F) Section 126(a)(5) of the Internal Revenue Code
of 1986 is amended to read as follows:
``(5) The environmental quality incentives program
established under chapter 2 of subtitle D of the Food Security
Act of 1985 (16 U.S.C. 3838 et seq.).''.
(G) Section 304(a) of the Lake Champlain Special
Designation Act of 1990 (Public Law 101-596; 33 U.S.C.
1270 note) is amended--
(i) in the subsection heading, by striking
``Special Project Area Under the Agricultural
Conservation Program'' and inserting ``A
Priority Area Under the Environmental Quality
Incentives Program''; and
(ii) in paragraph (1), by striking
``special project area under the Agricultural
Conservation Program established under section
8(b) of the Soil Conservation and Domestic
Allotment Act (16 U.S.C. 590h(b))'' and
inserting ``priority area under the
environmental quality incentives program
established under chapter 2 of subtitle D of
the Food Security Act of 1985 (16 U.S.C. 3838
et seq.)''.
(H) Section 6 of the Department of Agriculture
Organic Act of 1956 (70 Stat. 1033) is amended by
striking subsection (b).
(b) Great Plains Conservation Program.--
(1) Elimination.--Section 16 of the Soil Conservation and
Domestic Allotment Act (16 U.S.C. 590p) is repealed.
(2) Conforming amendments.--
(A) The Agricultural Adjustment Act of 1938 is
amended by striking ``Great Plains program'' each place
it appears in sections 344(f)(8) and 377 (7 U.S.C.
1344(f)(8) and 1377) and inserting ``environmental
quality incentives program established under chapter 2
of subtitle D of the Food Security Act of 1985 (16
U.S.C. 3838 et seq.)''.
(B) Section 246(b) of the Department of Agriculture
Reorganization Act of 1994 (7 U.S.C. 6962(b)) is
amended by striking paragraph (2).
(C) Section 126(a) of the Internal Revenue Code of
1986 is amended--
(i) by striking paragraph (6); and
(ii) by redesignating paragraphs (7)
through (10) as paragraphs (6) through (9),
respectively.
(c) Colorado River Basin Salinity Control Program.--
(1) Elimination.--Section 202 of the Colorado River Basin
Salinity Control Act (43 U.S.C. 1592) is amended by striking
subsection (c).
(2) Conforming amendment.--Section 246(b) of the Department
of Agriculture Reorganization Act of 1994 (7 U.S.C. 6962(b)) is
amended by striking paragraph (6).
(d) Rural Environmental Conservation Program.--
(1) Elimination.--Title X of the Agricultural Act of 1970
(16 U.S.C. 1501 et seq.) is repealed.
(2) Conforming amendments.--Section 246(b) of the
Department of Agriculture Reorganization Act of 1994 (7 U.S.C.
6962(b)) is amended--
(A) by striking paragraph (1); and
(B) by redesignating paragraphs (2) through (8) as
paragraphs (1) through (7), respectively.
(e) Other Conservation Provisions.--Subtitle F of title XII of the
Food Security Act of 1985 (16 U.S.C. 2005a and 2101 note) is repealed.
(f) Commodity Credit Corporation Charter Act.--Section 5(g) of the
Commodity Credit Corporation Charter Act (15 U.S.C. 714c(g)) is amended
to read as follows:
``(g) Carry out conservation functions and programs.''.
(g) Resource Conservation.--
(1) Elimination.--Subtitles A, B, D, E, F, G, and J of
title XV of the Agriculture and Food Act of 1981 (95 Stat.
1328; 16 U.S.C. 3401 et seq.) are repealed.
(2) Conforming amendment.--Section 739 of the Agriculture,
Rural Development, Food and Drug Administration, and Related
Agencies Appropriations Act, 1982 (7 U.S.C. 2272a), is
repealed.
(h) Environmental Easement Program.--Section 1239(a) of the Food
Security Act of 1985 (16 U.S.C. 3839(a)) is amended by striking ``1991
through 1995'' and inserting ``1996 through 2002''.
(i) Resource Conservation and Development Program.--Section 1538 of
the Agriculture and Food Act of 1981 (16 U.S.C. 3461) is amended by
striking ``1991 through 1995'' and inserting ``1996 through 2002''.
(j) Technical Amendment.--The first sentence of the matter under
the heading ``Commodity Credit Corporation'' of Public Law 99-263 (100
Stat. 59; 16 U.S.C. 3841 note) is amended by striking ``: Provided
further,'' and all that follows through ``Acts''.
(k) Agricultural Water Quality Incentives Program.--Chapter 2 of
subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C.
3838 et seq.) is repealed.
SEC. 356. WATER BANK PROGRAM.
Section 1230 of the Food Security Act of 1985 (16 U.S.C. 3830) is
amended by adding at the end the following:
``(d) Water Bank Program.--For purposes of this Act, acreage
enrolled, prior to the date of enactment of this subsection, in the
water bank program authorized by the Water Bank Act (16 U.S.C. 1301 et
seq.) shall be considered to have been enrolled in the conservation
reserve program on the date the acreage was enrolled in the water bank
program. Payments shall continue at the existing water bank rates.''.
SEC. 357. FLOOD WATER RETENTION PILOT PROJECTS.
Section 16 of the Soil Conservation and Domestic Allotment Act (16
U.S.C. 590p) is amended by adding at the end the following:
``(l) Flood Water Retention Pilot Projects.--
``(1) In general.--In cooperation with States, the
Secretary shall carry out at least 1 but not more than 2 pilot
projects to create and restore natural water retention areas to
control storm water and snow melt runoff within closed drainage
systems.
``(2) Practices.--To carry out paragraph (1), the Secretary
shall provide cost-sharing and technical assistance for the
establishment of nonstructural landscape management practices,
including agricultural tillage practices and restoration,
enhancement, and creation of wetland characteristics.
``(3) Funding.--
``(A) Limitation.--The funding used by the
Secretary to carry out this subsection shall not exceed
$10,000,000 per project.
``(B) Use of commodity credit corporation.--The
Secretary shall use the funds, facilities, and
authorities of the Commodity Credit Corporation to
carry out this subsection.
``(4) Additional pilot projects.--
``(A) Evaluation.--Not later than 2 years after a
pilot project is implemented, the Secretary shall
evaluate the extent to which the project has reduced or
may reduce Federal outlays for emergency spending and
unplanned infrastructure maintenance by an amount that
exceeds the Federal cost of the project.
``(B) Additional projects.--If the Secretary
determines that pilot projects carried out under this
subsection have reduced or may reduce Federal outlays
as described in subparagraph (A), the Secretary may
carry out, in accordance with this subsection, pilot
projects in addition to the projects authorized under
paragraph (1).''.
SEC. 358. WETLAND CONSERVATION EXEMPTION.
Section 1222(b)(1) of the Food Security Act of 1985 (16 U.S.C.
3822(b)(1)) is amended--
(1) in subparagraph (C), by striking ``or'' at the end; and
(2) by adding at the end the following:
``(E) converted wetland, if--
``(i) the extent of the conversion is
limited to the reversion to conditions that
will be at least equivalent to the wetland
functions and values that existed prior to
implementation of a voluntary wetland
restoration, enhancement, or creation action;
``(ii) technical determinations of the
prior site conditions and the restoration,
enhancement, or creation action have been
adequately documented in a plan approved by the
Natural Resources Conservation Service prior to
implementation; and
``(iii) the conversion action proposed by
the private landowner is approved by the
Natural Resources Conservation Service prior to
implementation; or''.
SEC. 359. FLOODPLAIN EASEMENTS.
Section 403 of the Agricultural Credit Act of 1978 (16 U.S.C. 2203)
is amended by inserting ``, including the purchase of floodplain
easements,'' after ``emergency measures''.
SEC. 360. RESOURCE CONSERVATION AND DEVELOPMENT PROGRAM
REAUTHORIZATION.
Section 1538 of the Agriculture and Food Act of 1981 (16 U.S.C.
3461) is amended by striking ``1991 through 1995'' and inserting ``1996
through 2001''.
SEC. 361. CONSERVATION RESERVE NEW ACREAGE.
Section 1231(a) of the Food Security Act of 1985 (16 U.S.C.
3831(a)) is amended by adding at the end the following: ``The Secretary
may enter into 1 or more new contracts to enroll acreage in a quantity
equal to the quantity of acreage covered by any contract that
terminates after the date of enactment of the Agricultural Market
Transition Act.''.
SEC. 362. REPEAL OF REPORT REQUIREMENT.
Section 1342 of title 44, United States Code, is repealed.
SEC. 363. WATERSHED PROTECTION AND FLOOD PREVENTION ACT AMENDMENTS.
(a) Declaration of Policy.--The first section of the Watershed
Protection and Flood Prevention Act (16 U.S.C. 1001) is amended to read
as follows:
``SECTION 1. DECLARATION OF POLICY.
``Erosion, flooding, sedimentation, and loss of natural habitats in
the watersheds and waterways of the United States cause loss of life,
damage to property, and a reduction in the quality of environment and
life of citizens. It is therefore the sense of Congress that the
Federal Government should join with States and their political
subdivisions, public agencies, conservation districts, flood prevention
or control districts, local citizens organizations, and Indian tribes
for the purpose of conserving, protecting, restoring, and improving the
land and water resources of the United States and the quality of the
environment and life for watershed residents across the United
States.''.
(b) Definitions.--
(1) Works of improvement.--Section 2 of the Act (16 U.S.C.
1002) is amended, with respect to the term ``works of
improvement''--
(A) in paragraph (1), by inserting ``,
nonstructural,'' after ``structural'';
(B) in paragraph (2), by striking ``or'' at the
end;
(C) by redesignating paragraph (3) as paragraph
(11);
(D) by inserting after paragraph (2) the following
new paragraphs:
``(3) a land treatment or other nonstructural practice,
including the acquisition of easements or real property rights,
to meet multiple watershed needs,
``(4) the restoration and monitoring of the chemical,
biological, and physical structure, diversity, and functions of
waterways and their associated ecological systems,
``(5) the restoration or establishment of wetland and
riparian environments as part of a multi-objective management
system that provides floodwater or storm water storage,
detention, and attenuation, nutrient filtering, fish and
wildlife habitat, and enhanced biological diversity,
``(6) the restoration of steam channel forms, functions,
and diversity using the principles of biotechnical slope
stabilization to reestablish a meandering, bankfull flow
channels, riparian vegetation, and floodplains,
``(7) the establishment and acquisition of multi-objective
riparian and adjacent flood prone lands, including greenways,
for sediment storage and floodwater storage,
``(8) the protection, restoration, enhancement and
monitoring of surface and groundwater quality, including
measures to improve the quality of water emanating from
agricultural lands and facilities,
``(9) the provision of water supply and municipal and
industrial water supply for rural communities having a
population of less than 55,000, according to the most recent
decennial census of the United States,
``(10) outreach to and organization of local citizen
organizations to participate in project design and
implementation, and the training of project volunteers and
participants in restoration and monitoring techniques, or'';
and
(E) in paragraph (11) (as so redesignated)--
(i) by inserting in the first sentence
after ``proper utilization of land'' the
following: ``, water, and related resources'';
and
(ii) by striking the sentence that mandates
that 20 percent of total project benefits be
directly related to agriculture.
(2) Local organization.--Such section is further amended,
with respect to the term ``local organization'', by adding at
the end the following new sentence: ``The term includes any
nonprofit organization (defined as having tax exempt status
under section 501(c)(3) of the Internal Revenue Code of 1986)
that has authority to carry out and maintain works of
improvement or is developing and implementing a work of
improvement in partnership with another local organization that
has such authority.''.
(3) Waterway.--Such section is further amended by adding at
the end the following new definition:
``Waterway.--The term `waterway' means, on public or private land,
any natural, degraded, seasonal, or created wetland on public or
private land, including rivers, streams, riparian areas, marshes,
ponds, bogs, mudflats, lakes, and estuaries. The term includes any
natural or manmade watercourse which is culverted, channelized, or
vegetatively cleared, including canals, irrigation ditches, drainage
wages, and navigation, industrial, flood control and water supply
channels.''.
(c) Assistance to Local Organizations.--Section 3 of the Act (16
U.S.C. 1003) is amended--
(1) in paragraph (1), by inserting after ``(1)'' the
following ``to provide technical assistance to help local
organizations'';
(2) in paragraph (2)--
(A) by inserting after ``(2)'' the following: ``to
provide technical assistance to help local
organizations''; and
(B) by striking ``engineering'' and inserting
``technical and scientific''; and
(3) by striking paragraph (3) and inserting the following
new paragraph:
``(3) to make allocations of costs to the project or
project components to determine whether the total of all
environmental, social, and monetary benefits exceed costs;''.
(d) Cost Share Assistance.--
(1) Amount of assistance.--Section 3A of the Act (16 U.S.C.
1003a) is amended by striking subsection (b) and inserting the
following:
``(b) Nonstructural Practices.--Notwithstanding any other provision
of this Act, Federal cost share assistance to local organizations for
the planning and implementation of nonstructural works of improvement
may be provided using funds appropriated for the purposes of this Act
for an amount not exceeding 75 percent of the total installation costs.
``(c) Structural Practices.--Notwithstanding any other provision of
this Act, Federal cost share assistance to local organizations for the
planning and implementation of structural works of improvement may be
provided using funds appropriated for the purposes of this Act for 50
percent of the total cost, including the cost of mitigating damage to
fish and wildlife habitat and the value of any land or interests in
land acquired for the work of improvement.
``(d) Special Rule for Limited Resource Communities.--
Notwithstanding any other provision of this Act, the Secretary may
provide cost share assistance to a limited resource community for any
works of improvement, using funds appropriated for the purposes of this
Act, for an amount not to exceed 90 percent of the total cost.
``(e) Treatment of Other Federal Funds.--Not more than 50 percent
of the non-Federal cost share may be satisfied using funds from other
Federal agencies.''.
(2) Conditions on assistance.--Section 4(1) of the Act (16
U.S.C. 1004(1)) is amended by striking ``, without cost to the
Federal Government from funds appropriated for the purposes of
this Act,''.
(e) Benefit Cost Analysis.--Section 5(1) of the Act (16 U.S.C.
1005(1)) is amended by striking ``the benefits'' and inserting ``the
total benefits, including environmental, social, and monetary
benefits,''.
(f) Project Prioritization.--The Watershed Protection and Flood
Prevention Act is amended by inserting after section 5 (16 U.S.C. 1005)
the following new section:
``SEC. 5A. FUNDING PRIORITIES.
``In making funding decisions under this Act, the Secretary shall
give priority to projects with one or more of the following attributes:
``(1) Projects providing significant improvements in
ecological values and functions in the project area.
``(2) Projects that enhance the long-term health of local
economies or generate job or job training opportunities for
local residents, including Youth Conservation and Service Corps
participants and displaced resource harvesters.
``(3) Projects that provide protection to human health,
safety, and property.
``(4) Projects that directly benefit economically
disadvantaged communities and enhance participation by local
residents of such communities.
``(5) Projects that restore or enhance fish and wildlife
species of commercial, recreational, subsistence or scientific
concern.
``(6) Projects or components of projects that can be
planned, designed, and implemented within two years.''.
(g) Transfer of Funds.--The Watershed Protection and Flood
Prevention Act (16 U.S.C. 1001-1010) is amended by adding at the end
the following new section:
``SEC. 14. TRANSFERS OF FUNDS.
``The Secretary may accept transfers of funds from other Federal
departments and agencies in order to carry out projects under this
Act.''.
SEC. 364. ABANDONMENT OF CONVERTED WETLANDS.
Section 1222 of the Food Security Act of 1985 (16 U.S.C. 3822) is
amended by adding at the end the following:
``(k) Abandonment of Converted Wetlands.--The Secretary shall not
determine that a prior converted or cropped wetland is abandoned, and
therefore that the wetland is subject to this subtitle, on the basis
that a producer has not planted an agricultural crop on the prior
converted or cropped wetland after the date of enactment of this
subsection, so long as any use of the wetland thereafter is limited to
agricultural purposes.''.
TITLE IV--NUTRITION ASSISTANCE
SEC. 401. FOOD STAMP PROGRAM.
(a) Disqualification of a Store or Concern.--Section 12 of the Food
Stamp Act of 1977 (7 U.S.C. 2021) is amended--
(1) by striking the section heading;
(2) by striking ``Sec. 12. (a) Any'' and inserting the
following:
``SEC. 12. CIVIL MONEY PENALTIES AND DISQUALIFICATION OF RETAIL FOOD
STORES AND WHOLESALE FOOD CONCERNS.
``(a) Disqualification.--
``(1) In general.--An'';
(3) by adding at the end of subsection (a) the following:
``(2) Employing certain persons.--A retail food store or
wholesale food concern shall be disqualified from participation
in the food stamp program if the store or concern knowingly
employs a person who has been found by the Secretary, or a
Federal, State, or local court, to have, within the preceding
3-year period--
``(A) engaged in the trading of a firearm,
ammunition, an explosive, or a controlled substance (as
defined in section 102 of the Controlled Substances Act
(21 U.S.C. 802)) for a coupon; or
``(B) committed any act that constitutes a
violation of this Act or a State law relating to using,
presenting, transferring, acquiring, receiving, or
possessing a coupon, authorization card, or access
device.''; and
(4) in subsection (b)(3)(B), by striking ``neither the
ownership nor management of the store or food concern was
aware'' and inserting ``the ownership of the store or food
concern was not aware''.
(b) Employment and Training.--Section 16(h)(1) of the Food Stamp
Act of 1977 (7 U.S.C. 2025(h)(1)) is amended by striking ``1995'' each
place it appears and inserting ``2002''.
(c) Authorization of Pilot Projects.--The last sentence of section
17(b)(1)(A) of the Food Stamp Act of 1977 (7 U.S.C. 2026(b)(1)(A)) is
amended by striking ``1995'' and inserting ``2002''.
(d) Outreach Demonstration Projects.--The first sentence of section
17(j)(1)(A) of the Food Stamp Act of 1977 (7 U.S.C. 2026(j)(1)(A)) is
amended by striking ``1995'' and inserting ``2002''.
(e) Authorization for Appropriations.--The first sentence of
section 18(a)(1) of the Food Stamp Act of 1977 (7 U.S.C. 2027(a)(1)) is
amended by striking ``1995'' and inserting ``2002''.
(f) Reauthorization of Puerto Rico Nutrition Assistance Program.--
The first sentence of section 19(a)(1)(A) of the Food Stamp Act of 1977
(7 U.S.C. 2028(a)(1)(A)) is amended by striking ``$974,000,000'' and
all that follows through ``fiscal year 1995'' and inserting
``$1,143,000,000 for fiscal year 1996, $1,174,000,000 for fiscal year
1997, $1,204,000,000 for fiscal year 1998, $1,236,000,000 for fiscal
year 1999, $1,268,000,000 for fiscal year 2000, $1,301,000,000 for
fiscal year 2001, and $1,335,000,000 for fiscal year 2002''.
(g) American Samoa.--The Food Stamp Act of 1977 (7 U.S.C. 2011 et
seq.) is amended by adding at the end the following:
``SEC. 24. TERRITORY OF AMERICAN SAMOA.
``From amounts made available to carry out this Act, the Secretary
may pay to the Territory of American Samoa not more than $5,300,000 for
each of fiscal years 1996 through 2002 to finance 100 percent of the
expenditures for the fiscal year for a nutrition assistance program
extended under section 601(c) of Public Law 96-597 (48 U.S.C.
1469d(c)).''.
SEC. 402. COMMODITY DISTRIBUTION PROGRAM; COMMODITY SUPPLEMENTAL FOOD
PROGRAM.
(a) Reauthorization.--The first sentence of section 4(a) of the
Agriculture and Consumer Protection Act of 1973 (Public Law 93-86; 7
U.S.C. 612c note) is amended by striking ``1995'' and inserting
``2002''.
(b) Funding.--Section 5 of the Agriculture and Consumer Protection
Act of 1973 (Public Law 93-86; 7 U.S.C. 612c note) is amended--
(1) in subsection (a)(2), by striking ``1995'' and
inserting ``2002''; and
(2) in subsection (d)(2), by striking ``1995'' and
inserting ``2002''.
(c) Carried-Over Funds.--20 percent of any commodity supplemental
food program funds carried over under section 5 of the Agriculture and
Consumer Protection Act of 1973 (Public Law 93-86; 7 U.S.C. 612c note)
shall be available for administrative expenses of the program.
SEC. 403. EMERGENCY FOOD ASSISTANCE PROGRAM.
(a) Reauthorization.--The first sentence of section 204(a)(1) of
the Emergency Food Assistance Act of 1983 (Public Law 98-8; 7 U.S.C.
612c note) is amended by striking ``1995'' and inserting ``2002''.
(b) Program Termination.--Section 212 of the Emergency Food
Assistance Act of 1983 (Public Law 98-8; 7 U.S.C. 612c note) is amended
by striking ``1995'' and inserting ``2002''.
(c) Required Purchases of Commodities.--Section 214 of the
Emergency Food Assistance Act of 1983 (Public Law 98-8; 7 U.S.C. 612c
note) is amended--
(1) in the first sentence of subsection (a), by striking
``1995'' and inserting ``2002''; and
(2) in subsection (e), by striking ``1995'' each place it
appears and inserting ``2002''.
SEC. 404. SOUP KITCHENS PROGRAM.
Section 110 of the Hunger Prevention Act of 1988 (Public Law 100-
435; 7 U.S.C. 612c note) is amended--
(1) in the first sentence of subsection (a), by striking
``1995'' and inserting ``2002''; and
(2) in subsection (c)(2)--
(A) in the paragraph heading, by striking ``1995''
and inserting ``2002''; and
(B) by striking ``1995'' each place it appears and
inserting ``2002''.
SEC. 405. NATIONAL COMMODITY PROCESSING.
The first sentence of section 1114(a)(2)(A) of the Agriculture and
Food Act of 1981 (7 U.S.C. 1431e(2)(A)) is amended by striking ``1995''
and inserting ``2002''.
TITLE V--MISCELLANEOUS
Subtitle A--General Miscellaneous Provisions
SEC. 501. FUND FOR DAIRY PRODUCERS TO PAY FOR NUTRIENT MANAGEMENT.
Section 8c(5) of the Agricultural Adjustment Act (7 U.S.C.
608c(5)), reenacted with amendments by the Agricultural Marketing
Agreement Act of 1937, is amended--
(1) in paragraph (A), by adding at the end the following:
``The minimum price for milk of the highest classification in
any order (other than an order amended under paragraph (M)) may
not be higher than the minimum price required under this
paragraph.''; and
(2) by adding at the end the following:
``(M) Safe harbor.--
``(i) In general.--Providing that each
order may be amended such that not more than
$.10 per hundredweight of milk of the highest
use classification may be added to the minimum
applicable price to be set aside in a fund
called the `Safe Harbor Fund Account' (referred
to in this paragraph as the `Account').
``(ii) Administration.--
``(I) Market administrator.--The
Account shall be administered by the
Market Administrator.
``(II) Use of funds.--A
determination regarding the use of the
funds in the Account shall be made by
the Safe Harbor Committee established
under clause (iii).
``(iii) Safe harbor committee.--The
Secretary shall establish a Safe Harbor
Committee consisting of 7 milk producers
appointed by the Secretary who supply milk to
handlers regulated under a Federal milk
marketing order.
``(iv) Use of funds.--
``(I) Applications.--To be eligible
to use amounts in the fund, a milk
producer who supplies milk to handlers
regulated under a Federal milk
marketing order shall submit an
application to the Safe Harbor
Committee.
``(II) Approval.--The Safe Harbor
Committee may approve only applications
that fund conservation practices
approved by the Secretary that control
the off-migration of nutrients from the
farm.
``(III) State water quality
priorities.--In approving applications,
the Safe Harbor Committee shall take
into account, to the extent
practicable, the applicable State water
quality priorities.''.
SEC. 502. CROP INSURANCE.
(a) Catastrophic Risk Protection.--Section 508(b) of the Federal
Crop Insurance Act (7 U.S.C. 1508(b)) is amended--
(1) in paragraph (4), by adding at the end the following:
``(C) Delivery of coverage.--
``(i) In general.--In full consultation
with approved insurance providers, the
Secretary may continue to offer catastrophic
risk protection in a State (or a portion of a
State) through local offices of the Department
if the Secretary determines that there is an
insufficient number of approved insurance
providers operating in the State or portion to
adequately provide catastrophic risk protection
coverage to producers.
``(ii) Coverage by approved insurance
providers.--To the extent that catastrophic
risk protection coverage by approved insurance
providers is sufficiently available in a State
as determined by the Secretary, only approved
insurance providers may provide the coverage in
the State.
``(iii) Current policies.--Subject to
clause (ii), all catastrophic risk protection
policies written by local offices of the
Department shall be transferred (including all
fees collected for the crop year in which the
approved insurance provider will assume the
policies) to the approved insurance provider
for performance of all sales, service, and loss
adjustment functions.''; and
(2) in paragraph (7), by striking subparagraph (A) and
inserting the following:
``(A) In general.--Effective for the spring-planted
1996 and subsequent crops, to be eligible for any
payment or loan under the Agricultural Market
Transition Act or the Agricultural Adjustment Act of
1938 (7 U.S.C. 1301 et seq.), the conservation reserve
program, or any benefit described in section 371 of the
Consolidated Farm and Rural Development Act (7 U.S.C.
2008f), a person shall--
``(i) obtain at least the catastrophic
level of insurance for each crop of economic
significance in which the person has an
interest; or
``(ii) provide a written waiver to the
Secretary that waives any eligibility for
emergency crop loss assistance in connection
with the crop.''.
(b) Coverage of Seed Crops.--Section 519(a)(2)(B) of the Act (7
U.S.C. 1519(a)(2)(B)) is amended by inserting ``seed crops,'' after
``turfgrass sod,''.
(c) Crop Insurance Pilot Project.--
(1) Coverage.--The Secretary of Agriculture shall develop
and administer a pilot project for crop insurance coverage that
indemnifies crop losses due to a natural disaster such as
insect infestation or disease.
(2) Actuarial soundness.--A pilot project under this
paragraph shall be actuarially sound, as determined by the
Secretary and administered at no net cost to the United States
Treasury.
(3) Duration.--A pilot project under this paragraph shall
be of two years' duration.
(d) Crop Insurance for Specialty Crops.--Section 508(a)(6) of the
Federal Crop Insurance Act (7 U.S.C. 1508(a)(6)) is amended by adding
at the end the following:
``(D) Addition of specialty crops.--Not later than
2 years after the date of enactment of this
subparagraph--
``(i) the Corporation shall issue
regulations to expand crop insurance coverage
under this title to include aquaculture; and
``(ii) The Corporation shall conduct a
study and limited pilot program on the
feasibility of insuring nursery crops.''.
(e) Marketing Windows.--Section 508(j) of the Federal Crop
Insurance Act (7 U.S.C. 1508(j)) is amended by adding at the end the
following:
``(4) Marketing windows.--The Corporation shall consider
marketing windows in determining whether it is feasible to
require planting during a crop year.''.
SEC. 503. REVENUE INSURANCE.
Section 508(h) of the Federal Crop Insurance Act (7 U.S.C. 1508(h))
is amended by adding at the end the following:
``(9) Revenue insurance pilot program.--
``(A) In general.--Not later than December 31,
1996, the Secretary shall carry out a pilot program in
a limited number of counties, as determined by the
Secretary, for crop years 1997, 1998, 1999, and 2000,
under which a producer of corn, wheat, or soybeans may
elect to receive insurance against loss of revenue, as
determined by the Secretary.
``(B) Administration.--Revenue insurance under this
paragraph shall--
``(i) be offered through reinsurance
arrangements with private insurance companies;
``(ii) offer at least a minimum level of
coverage that is an alternative to catastrophic
crop insurance;
``(iii) be actuarily sound; and
``(iv) require the payment of premiums and
administrative fees by an insured producer.''.
SEC. 504. COLLECTION AND USE OF AGRICULTURAL QUARANTINE AND INSPECTION
FEES.
Subsection (a) of section 2509 of the Food, Agriculture,
Conservation, and Trade Act of 1990 (21 U.S.C. 136a) is amended to read
as follows:
``(a) Quarantine and Inspection Fees.--
``(1) Fees authorized.--The Secretary of Agriculture may
prescribe and collect fees sufficient--
``(A) to cover the cost of providing agricultural
quarantine and inspection services in connection with
the arrival at a port in the customs territory of the
United States, or the preclearance or preinspection at
a site outside the customs territory of the United
States, of an international passenger, commercial
vessel, commercial aircraft, commercial truck, or
railroad car;
``(B) to cover the cost of administering this
subsection; and
``(C) through fiscal year 2002, to maintain a
reasonable balance in the Agricultural Quarantine
Inspection User Fee Account established under paragraph
(5).
``(2) Limitation.--In setting the fees under paragraph (1),
the Secretary shall ensure that the amount of the fees are
commensurate with the costs of agricultural quarantine and
inspection services with respect to the class of persons or
entities paying the fees. The costs of the services with
respect to passengers as a class includes the costs of related
inspections of the aircraft or other vehicle.
``(3) Status of fees.--Fees collected under this subsection
by any person on behalf of the Secretary are held in trust for
the United States and shall be remitted to the Secretary in
such manner and at such times as the Secretary may prescribe.
``(4) Late payment penalties.--If a person subject to a fee
under this subsection fails to pay the fee when due, the
Secretary shall assess a late payment penalty, and the overdue
fees shall accrue interest, as required by section 3717 of
title 31, United States Code.
``(5) Agricultural quarantine inspection user fee
account.--
``(A) Establishment.--There is established in the
Treasury of the United States a no-year fund, to be
known as the `Agricultural Quarantine Inspection User
Fee Account', which shall contain all of the fees
collected under this subsection and late payment
penalties and interest charges collected under
paragraph (4) through fiscal year 2002.
``(B) Use of account.--For each of the fiscal years
1996 through 2002, funds in the Agricultural Quarantine
Inspection User Fee Account shall be available, in such
amounts as are provided in advance in appropriations
Acts, to cover the costs associated with the provision
of agricultural quarantine and inspection services and
the administration of this subsection. Amounts made
available under this subparagraph shall be available
until expended.
``(C) Excess fees.--Fees and other amounts
collected under this subsection in any of the fiscal
years 1996 through 2002 in excess of $100,000,000 shall
be available for the purposes specified in subparagraph
(B) until expended, without further appropriation.
``(6) Use of amounts collected after fiscal year 2002.--
After September 30, 2002, the unobligated balance in the
Agricultural Quarantine Inspection User Fee Account and fees
and other amounts collected under this subsection shall be
credited to the Department of Agriculture accounts that incur
the costs associated with the provision of agricultural
quarantine and inspection services and the administration of
this subsection. The fees and other amounts shall remain
available to the Secretary until expended without fiscal year
limitation.
``(7) Staff years.--The number of full-time equivalent
positions in the Department of Agriculture attributable to the
provision of agricultural quarantine and inspection services
and the administration of this subsection shall not be counted
toward the limitation on the total number of full-time
equivalent positions in all agencies specified in section 5(b)
of the Federal Workforce Restructuring Act of 1994 (Public Law
103-226; 5 U.S.C. 3101 note) or other limitation on the total
number of full-time equivalent positions.''.
SEC. 505. COMMODITY CREDIT CORPORATION INTEREST RATE.
Notwithstanding any other provision of law, the monthly Commodity
Credit Corporation interest rate applicable to loans provided for
agricultural commodities by the Corporation shall be 100 basis points
greater than the rate determined under the applicable interest rate
formula in effect on October 1, 1995.
SEC. 506. EVERGLADES AGRICULTURAL AREA.
(a) In General.--On July 1, 1996, out of any funds in the Treasury
not otherwise appropriated, the Secretary of the Treasury shall provide
$200,000,000 to the Secretary of the Interior to carry out this
section.
(b) Entitlement.--The Secretary of the Interior--
(1) shall accept the funds made available under subsection
(a);
(2) shall be entitled to receive the funds; and
(3) shall use the funds to conduct restoration activities
in the Everglades ecosystem, which may include acquiring
private acreage in the Everglades Agricultural Area including
approximately 52,000 acres that is commonly known as the
``Talisman tract''.
(c) Transferring Funds.--The Secretary of the Interior may transfer
funds to the Army Corps of Engineers, the State of Florida, or the
South Florida Water Management District to carry out subsection (b)(3).
(d) Deadline.--Not later than December 31, 1999, the Secretary of
the Interior shall utilize the funds for restoration activities
referred to in subsection (b)(3).
SEC. 507. FUND FOR RURAL AMERICA.
(a) In General.--The Secretary shall create an account called the
Fund for Rural America for the purposes of providing funds for
activities described in subsection (c).
(b) Commodity Credit Corporation.--In each of the 1996 through 1998
fiscal years, the Secretary shall transfer into the Fund for Rural
America (hereafter referred to as the ``Account'')--
(1) $50,000,000 for the 1996 fiscal year;
(2) $100,000,000 for the 1997 fiscal year; and
(3) $150,000,000 for the 1998 fiscal year.
(c) Purposes.--Except as provided in subsection (d), the Secretary
shall provide not more than one-third of the funds from the Account for
activities described in paragraph (2).
(1) Rural development activities.--The Secretary may use
the funds in the Account for the following rural development
activities authorized in:
(A) The Housing Act of 1949 for--
(i) direct loans to low income borrowers
pursuant to section 502;
(ii) loans for financial assistance for
housing for domestic farm laborers pursuant to
section 514;
(iii) financial assistance for housing of
domestic farm labor pursuant to section 516;
(iv) grants and contracts for mutual and
self help housing pursuant to section
523(b)(1)(A); and
(v) grants for Rural Housing Preservation
pursuant to section 533;
(B) The Food Security Act of 1985 for loans to
intermediary borrowers under the Rural Development Loan
Fund;
(C) Consolidated Farm and Rural Development Act
for--
(i) grants for Rural Business Enterprises
pursuant to section 310B (c) and (j);
(ii) direct loans, loan guarantees and
grants for water and waste water projects
pursuant to section 306; and
(iii) down payments assistance to farmers,
section 310E;
(D) grants for outreach to socially disadvantaged
farmers and ranchers pursuant to section 2501 of the
Food, Agriculture, Conservation, and Trade Act of 1990
(7 U.S.C. 2279); and
(E) grants pursuant to section 204(6) of the
Agricultural Marketing Act of 1946.
(2) Research.--
(A) In general.--The Secretary may use the funds in
the Account for research grants to increase the
competitiveness and farm profitability, protect and
enhance natural resources, increase economic
opportunities in farming and rural communities and
expand locally owned value added processing and
marketing operations.
(B) Eligible grantee.--The Secretary may make a
grant under this paragraph to--
(i) a college or university;
(ii) a State agricultural experiment
station;
(iii) a State Cooperative Extension
Service;
(iv) a research institution or
organization;
(v) a private organization or person; or
(iv) a Federal agency.
(C) Use of grant.--
(i) In general.--A grant made under this
paragraph may be used by a grantee for 1 or
more of the following uses--
(I) research, ranging from
discovery to principles of application;
(II) extension and related private-
sector activities; and
(III) education.
(ii) Limitation.--No grant shall be made
for any project, determined by the Secretary,
to be eligible for funding under research and
commodity promotion programs administered by
the Department.
(D) Administration.--
(i) Priority.--In administering this
paragraph, the Secretary shall--
(I) establish priorities for
allocating grants, based on needs and
oppportunities of the food and
agriculture system in the United States
related to the goals of the paragraph;
(II) seek and accept proposals for
grants;
(III) determine the relevance and
merit of proposals through a system of
peer and stakeholder review; and
(IV) award grants on the basis of
merit, quality, and relevance to
advancing the national research and
extension purposes.
(ii) Competitive awarding.--A grant under
this paragraph shall be awarded on a
competitive basis.
(iii) Terms.--A grant under this paragraph
shall have a term that does not exceed 5 years.
(iv) Matching funds.--As a condition of
receipts under this paragraph, the Secretary
shall require the funding of the grant with
equal matching funds from a non-Federal source
if the grant is--
(I) for applied research that is
commodity-specific; and
(II) not of national scope.
(v) Administrative costs.--
(I) In general.--The Secretary may
use not more than 4 percent of the
funds made available under this
paragraph for administrative costs
incurred by the Secretary in carrying
out this paragraph.
(II) Limitation.--Funds made
available under this paragraph shall
not be used--
(aa) for the construction
of a new building or the
acquisition, expansion,
remodeling, or alteration of an
existing building (including
site grading and improvement
and architect fees); or
(bb) in excess of ten
percent of the annual
allocation for commodity-
specific projects not of the
national scope.
(d) Limitations.--No funds from the Fund for Rural America may be
used for an activity specified in subsection (c) if the current level
of appropriations for the activity is less than 90 percent of the 1996
fiscal year appropriations for the activity adjusted for inflation.
Subtitle B--Options Pilot Programs and Risk Management Education
SEC. 511. SHORT TITLE.
This subtitle may be cited as the ``Options Pilot Programs Act of
1996''.
SEC. 512. PURPOSE.
The purpose of this subtitle is to authorize the Secretary of
Agriculture (referred to in this subtitle as the ``Secretary'') to--
(1) conduct research through pilot programs for 1 or more
program commodities to ascertain whether futures and options
contracts can provide producers with reasonable protection from
the financial risks of fluctuations in price, yield, and income
inherent in the production and marketing of agricultural
commodities; and
(2) provide education in the management of the financial
risks inherent in the production and marketing of agricultural
commodities.
SEC. 513. PILOT PROGRAMS.
(a) In General.--The Secretary is authorized to conduct pilot
programs for 1 or more supported commodities through December 31, 2002.
(b) Distribution of Pilot Programs.--The Secretary may operate a
pilot program described in subsection (a) (referred to in this subtitle
as a ``pilot program'') in up to 100 counties for each program
commodity with not more than 6 of those counties in any 1 State. A
pilot program shall not be implemented in any county for more than 3 of
the 1996 through 2002 calendar years.
(c) Eligible Participants.--
(1) In general.--In carrying out a pilot program, the
Secretary may contract with a producer who--
(A) is eligible to participate in a price support
program for a supported commodity;
(B) desires to participate in a pilot program; and
(C) is located in an area selected for a pilot
program.
(2) Contracts.--Each contract under paragraph (1) shall set
forth the terms and conditions for participation in a pilot
program.
(d) Eligible Markets.--Trades for futures and options contracts
under a pilot program shall be carried out on commodity futures and
options markets designated as contract markets under the Commodity
Exchange Act (7 U.S.C. 1 et seq.)
SEC. 514. TERMS AND CONDITIONS.
(a) In General.--To be eligible to participate in any pilot program
for any commodity conducted under this subtitle, a producer shall meet
the eligibility requirements established under this subtitle (including
regulations issued under this subtitle).
(b) Recordkeeping.--Producers shall compile, maintain, and submit
(or authorize the compilation, maintenance, and submission) of such
documentation as the regulations governing any pilot program require.
SEC. 515. NOTICE.
(a) Alternative Programs.--Pilot programs shall be alternatives to
other related programs of the Department of Agriculture.
(b) Notice to Producers.--The Secretary shall provide notice to
each producer participating in a pilot program that--
(1) the participation of the producer in a pilot program is
voluntary; and
(2) neither the United States, the Commodity Credit
Corporation, the Federal Crop Insurance Corporation, the
Department of Agriculture, nor any other Federal agency is
authorized to guarantee that participants in the pilot program
will be better or worse off financially as a result of
participation in a pilot program than the producer would have
been if the producer had not participated in a pilot program.
SEC. 516. COMMODITY CREDIT CORPORATION.
(a) In General.--Pilot programs established under this subtitle
shall be funded by and carried out through the Commodity Credit
Corporation.
(b) Limitation.--In conducting the programs, the Secretary shall,
to the maximum extent practicable, operate the pilot programs in a
budget neutral manner.
SEC. 517. RISK MANAGEMENT EDUCATION.
The Secretary shall provide such education in management of the
financial risks inherent in the production and marketing of
agricultural commodities as the Secretary considers appropriate.
Subtitle C--Commercial Transportation of Equine for Slaughter
SEC. 521. FINDINGS.
Congress finds that, to ensure that equine sold for slaughter are
provided humane treatment and care, it is essential to regulate the
transportation, care, handling, and treatment of equine by any person
engaged in the commercial transportation of equine for slaughter.
SEC. 522. DEFINITIONS.
In this subtitle:
(1) Commerce.--The term ``commerce'' means trade, traffic,
transportation, or other commerce by a person--
(A) between any State, territory, or possession of
the United States, or the District of Columbia, and any
place outside thereof;
(B) between points within the same State,
territory, or possession of the United States, or the
District of Columbia, but through any place outside
thereof; or
(C) within any territory or possession of the
United States or the District of Columbia.
(2) Department.--The term ``Department'' means the United
States Department of Agriculture.
(3) Equine.--The term ``equine'' means any member of the
Equidae family.
(4) Equine for slaughter.--The term ``equine for
slaughter'' means any equine that is transported, or intended
to be transported, by vehicle to a slaughter facility or
intermediate handler from a sale, auction, or intermediate
handler by a person engaged in the business of transporting
equine for slaughter.
(5) Foal.--The term ``foal'' means an equine that is not
more than 6 months of age.
(6) Intermediate handler.--The term ``intermediate
handler'' means any person regularly engaged in the business of
receiving custody of equine for slaughter in connection with
the transport of the equine to a slaughter facility, including
a stockyard, feedlot, or assembly point.
(7) Person.--The term ``person'' means any individual,
partnership, firm, company, corporation, or association that
regularly transports equine for slaughter in commerce, except
that the term shall not include an individual or other entity
that does not transport equine for slaughter on a regular basis
as part of a commercial enterprise.
(8) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture.
(9) Vehicle.--The term ``vehicle'' means any machine,
truck, tractor, trailer, or semitrailer, or any combination
thereof, propelled or drawn by mechanical power and used on a
highway in the commercial transportation of equine for
slaughter.
(10) Stallion.--The term ``stallion'' means any uncastrated
male equine that is 1 year of age or older.
SEC. 523. STANDARDS FOR HUMANE COMMERCIAL TRANSPORTATION OF EQUINE FOR
SLAUGHTER.
(a) In General.--Subject to the availability of appropriations, not
later than 1 year after the date of enactment of this subtitle, the
Secretary shall issue, by regulation, standards for the humane
commercial transportation by vehicle of equine for slaughter.
(b) Prohibition.--No person engaged in the regular business of
transporting equine by vehicle for slaughter as part of a commercial
enterprise shall transport in commerce, to a slaughter facility or
intermediate handler, an equine for slaughter except in accordance with
the standards and this subtitle.
(c) Minimum Requirements.--The standards shall include minimum
requirements for the humane handling, care, treatment, and equipment
necessary to ensure the safe and humane transportation of equine for
slaughter. The standards shall require, at a minimum, that--
(1) no equine for slaughter shall be transported for more
than 24 hours without being unloaded from the vehicle and
allowed to rest for at least 8 consecutive hours and given
access to adequate quantities of wholesome food and potable
water;
(2) a vehicle shall provide adequate headroom for an equine
for slaughter with a minimum of at least 6 feet, 6 inches of
headroom from the roof and beams or other structural members
overhead to floor underfoot, except that a vehicle transporting
6 equine or less shall provide a minimum of at least 6 feet of
headroom from the roof and beams or other structural members
overhead to floor underfoot if none of the equine are over 16
hands;
(3) the interior of a vehicle shall--
(A) be free of protrusions, sharp edges, and
harmful objects;
(B) have ramps and floors that are adequately
covered with a nonskid nonmetallic surface; and
(C) be maintained in a sanitary condition;
(4) a vehicle shall--
(A) provide adequate ventilation and shelter from
extremes of weather and temperature for all equine;
(B) be of appropriate size, height, and interior
design for the number of equine being carried to
prevent overcrowding; and
(C) be equipped with doors and ramps of sufficient
size and location to provide for safe loading and
unloading, including unloading during emergencies;
(5)(A) equine shall be positioned in the vehicle by size;
and
(B) stallions shall be segregated from other equine;
(6)(A) all equine for slaughter must be fit to travel as
determined by an accredited veterinarian, who shall prepare a
certificate of inspection, prior to loading for transport,
that--
(i) states that the equine were inspected and
satisfied the requirements of subparagraph (B);
(ii) includes a clear description of each equine;
and
(iii) is valid for 7 days;
(B) no equine shall be transported to slaughter if the
equine is found to be--
(i) suffering from a broken or dislocated limb;
(ii) unable to bear weight on all 4 limbs;
(iii) blind in both eyes; or
(iv) obviously suffering from severe illness,
injury, lameness, or physical debilitation that would
make the equine unable to withstand the stress of
transportation;
(C) no foal may be transported for slaughter;
(D) no mare in foal that exhibits signs of impending
parturition may be transported for slaughter; and
(E) no equine for slaughter shall be accepted by a
slaughter facility unless the equine is--
(i) inspected on arrival by an employee of the
slaughter facility or an employee of the Department;
and
(ii) accompanied by a certificate of inspection
issued by an accredited veterinarian, not more than 7
days before the delivery, stating that the veterinarian
inspected the equine on a specified date.
SEC. 524. RECORDS.
(a) In General.--A person engaged in the business of transporting
equine for slaughter shall establish and maintain such records, make
such reports, and provide such information as the Secretary may, by
regulation, require for the purposes of carrying out, or determining
compliance with, this subtitle.
(b) Minimum Requirements.--The records shall include, at a
minimum--
(1) the veterinary certificate of inspection;
(2) the names and addresses of current owners and
consignors, if applicable, of the equine at the time of sale or
consignment to slaughter; and
(3) the bill of sale or other documentation of sale for
each equine.
(c) Availability.--The records shall--
(1) accompany the equine during transport to slaughter;
(2) be retained by any person engaged in the business of
transporting equine for slaughter for a reasonable period of
time, as determined by the Secretary, except that the
veterinary certificate of inspection shall be surrendered at
the slaughter facility to an employee or designee of the
Department and kept by the Department for a reasonable period
of time, as determined by the Secretary; and
(3) on request of an officer or employee of the Department,
be made available at all reasonable times for inspection and
copying by the officer or employee.
SEC. 525. AGENTS.
(a) In General.--For purposes of this subtitle, the act, omission,
or failure of an individual acting for or employed by a person engaged
in the business of transporting equine for slaughter, within the scope
of the employment or office of the individual, shall be considered the
act, omission, or failure of the person engaging in the commercial
transportation of equine for slaughter as well as of the individual.
(b) Assistance.--If an equine suffers a substantial injury or
illness while being transported for slaughter on a vehicle, the driver
of the vehicle shall seek prompt assistance from a licensed
veterinarian.
SEC. 526. COOPERATIVE AGREEMENTS.
The Secretary is authorized to cooperate with States, political
subdivisions of States, State agencies (including State departments of
agriculture and State law enforcement agencies), and foreign
governments to carry out and enforce this subtitle (including
regulations issued under this subtitle).
SEC. 527. INVESTIGATIONS AND INSPECTIONS.
(a) In General.--The Secretary is authorized to conduct such
investigations or inspections as the Secretary considers necessary to
enforce this subtitle (including any regulation issued under this
subtitle).
(b) Access.--For the purposes of conducting an investigation or
inspection under subsection (a), the Secretary shall, at all reasonable
times, have access to--
(1) the place of business of any person engaged in the
business of transporting equine for slaughter;
(2) the facilities and vehicles used to transport the
equine; and
(3) records required to be maintained under section 834.
(c) Assistance to or Destruction of Equine.--The Secretary shall
issue such regulations as the Secretary considers necessary to permit
employees or agents of the Department to--
(1) provide assistance to any equine that is covered by
this subtitle (including any regulation issued under this
subtitle); or
(2) destroy, in a humane manner, any such equine found to
be suffering.
SEC. 528. INTERFERENCE WITH ENFORCEMENT.
(a) In General.--Subject to subsection (b), a person who forcibly
assaults, resists, opposes, impedes, intimidates, or interferes with
any person while engaged in or on account of the performance of an
official duty of the person under this subtitle shall be fined not more
than $5,000 or imprisoned not more than 3 years, or both.
(b) Weapons.--If the person uses a deadly or dangerous weapon in
connection with an action described in subsection (a), the person shall
be fined not more than $10,000 or imprisoned not more than 10 years, or
both.
SEC. 529. JURISDICTION OF COURTS.
Except as provided in section 840(a)(5), a district court of the
United States in any appropriate judicial district under section 1391
of title 28, United States Code, shall have jurisdiction to
specifically enforce this subtitle, to prevent and restrain a violation
of this subtitle, and to otherwise enforce this subtitle.
SEC. 530. CIVIL AND CRIMINAL PENALTIES.
(a) Civil Penalties.--
(1) In general.--A person who violates this subtitle
(including a regulation or standard issued under this subtitle)
shall be assessed a civil penalty by the Secretary of not more
than $2,000 for each violation.
(2) Separate offenses.--Each equine transported in
violation of this subtitle shall constitute a separate offense.
Each violation and each day during which a violation continues
shall constitute a separate offense.
(3) Hearings.--No penalty shall be assessed under this
subsection unless the person who is alleged to have violated
this subtitle is given notice and opportunity for a hearing
with respect to an alleged violation.
(4) Final order.--An order of the Secretary assessing a
penalty under this subsection shall be final and conclusive
unless the aggrieved person files an appeal from the order
pursuant to paragraph (5).
(5) Appeals.--Not later than 30 days after entry of a final
order of the Secretary issued pursuant to this subsection, a
person aggrieved by the order may seek review of the order in
the appropriate United States Court of Appeals. The Court shall
have exclusive jurisdiction to enjoin, set aside, suspend (in
whole or in part), or to determine the validity of the order.
(6) Nonpayment of penalty.--On a failure to pay the penalty
assessed by a final order under this section, the Secretary
shall request the Attorney General to institute a civil action
in a district court of the United States or other United States
court for any district in which the person is found, resides,
or transacts business, to collect the penalty. The court shall
have jurisdiction to hear and decide the action.
(b) Criminal Penalties.--
(1) First offense.--Subject to paragraph (2), a person who
knowingly violates this subtitle (or a regulation or standard
issued under this subtitle) shall, on conviction of the
violation, be subject to imprisonment for not more than 1 year
or a fine of not more than $2,000, or both.
(2) Subsequent offenses.--On conviction of a second or
subsequent offense described in paragraph (1), a person shall
be subject to imprisonment for not more than 3 years or to a
fine of not more than $5,000, or both.
SEC. 531. PAYMENTS FOR TEMPORARY OR MEDICAL ASSISTANCE FOR EQUINE DUE
TO VIOLATIONS.
From sums received as penalties, fines, or forfeitures of property
for any violation of this subtitle (including a regulation issued under
this subtitle), the Secretary shall pay the reasonable and necessary
costs incurred by any person in providing temporary care or medical
assistance for any equine that needs the care or assistance due to a
violation of this subtitle.
SEC. 532. RELATIONSHIP TO STATE LAW.
Nothing in this subtitle prevents a State from enacting or
enforcing any law (including a regulation) that is not inconsistent
with this subtitle or that is more restrictive than this subtitle.
SEC. 533. AUTHORIZATION OF APPROPRIATIONS.
(a) In General.--There are authorized to be appropriated for each
fiscal year such sums as are necessary to carry out this subtitle.
(b) Limitation.--No provision of this subtitle shall be effective,
or be enforced against any person, during a fiscal year unless funds to
carry out this subtitle have been appropriated for the fiscal year.
Subtitle D--Miscellaneous
SEC. 541. LIVESTOCK DEALER TRUST.
Title III of the Packers and Stockyards Act, 1921 (7 U.S.C. 201 et
seq.), is amended by adding at the end the following:
``SEC. 318. LIVESTOCK DEALER TRUST.
``(a) Findings.--Congress finds that--
``(1) a burden on and obstruction to commerce in livestock
is caused by financing arrangements under which dealers and
market agencies purchasing livestock on commission encumber,
give lenders security interests in, or have liens placed on
livestock purchased by the dealers and market agencies in cash
sales, or on receivables from or proceeds of such sales, when
payment is not made for the livestock; and
``(2) the carrying out of such arrangements is contrary to
the public interest.
``(b) Purpose.--The purpose of this section is to remedy the burden
on and obstruction to commerce in livestock described in paragraph (1)
and protect the public interest.
``(c) Definitions.--In this section:
``(1) Cash sale.--The term `cash sale' means a sale in
which the seller does not expressly extend credit to the buyer.
``(2) Trust.--The term `trust' means 1 or more assets of a
buyer that (subsequent to a cash sale of livestock) constitutes
the corpus of a trust held for the benefit of a seller and
consists of--
``(A) account receivables and proceeds earned from
the cash sale of livestock by a dealer;
``(B) account receivables and proceeds of a
marketing agency earned on commission from the cash
sale of livestock;
``(C) the inventory of the dealer or marketing
agency; or
``(D) livestock involved in the cash sale, if the
seller has not received payment in full for the
livestock and a bona fide third-party purchaser has not
purchased the livestock from the dealer or marketing
agency.
``(d) Holding in Trust.--
``(1) In general.--The account receivables and proceeds
generated in a cash sale made by a dealer or a market agency on
commission and the inventory of the dealer or market agency
shall be held by the dealer or market agency in trust for the
benefit of the seller of the livestock until the seller
receives payment in full for the livestock.
``(2) Exemption.--Paragraph (1) does not apply in the case
of a cash sale made by a dealer or market agency if the total
amount of cash sales made by the dealer or market agency during
the preceding 12 months does not exceed $250,000.
``(3) Dishonor of instrument of payment.--A payment in a
sale described in paragraph (1) shall not be considered to be
made if the instrument by which payment is made is dishonored.
``(4) Loss of benefit of trust.--If an instrument by which
payment is made in a sale described in paragraph (1) is
dishonored, the seller shall lose the benefit of the trust
under paragraph (1) on the earlier of--
``(A) the date that is 15 business days after date
on which the seller receives notice of the dishonor; or
``(B) the date that is 30 days after the final date
for making payment under section 409,
unless the seller gives written notice to the dealer or market
agency of the seller's intention to preserve the trust and
submits a copy of the notice to the Secretary.
``(5) Rights of third-party purchaser.--The trust
established under paragraph (1) shall have no effect on the
rights of a bona fide third-party purchaser of the livestock,
without regard to whether the livestock are delivered to the
bona fide purchaser.
``(e) Jurisdiction.--The district courts of the United States shall
have jurisdiction in a civil action--
``(1) by the beneficiary of a trust described in subsection
(c)(1), to enforce payment of the amount held in trust; and
``(2) by the Secretary, to prevent and restrain dissipation
of a trust described in subsection (c)(1).''.
SEC. 542. PLANTING OF ENERGY CROPS.
(a) Feed Grains.--The first sentence of section 105B(c)(1)(F)(i) of
the Agricultural Act of 1949 (7 U.S.C. 1444f(c)(1)(F)(i)) is amended by
inserting ``herbaceous perennial grass, short rotation woody coppice
species of trees, other energy crops designated by the Secretary with
high energy content,'' after ``mung beans,''.
(b) Wheat.--The first sentence of section 107B(c)(1)(F)(i) of the
Agricultural Act of 1949 (7 U.S.C. 1445b-3a(c)(1)(F)(i)) is amended by
inserting ``herbaceous perennial grass, short rotation woody coppice
species of trees, other energy crops designated by the Secretary with
high energy content,'' after ``mung beans,''.
SEC. 543. REIMBURSABLE AGREEMENTS.
Section 737 of Public Law 102-142 (7 U.S.C. 2277) is amended--
(1) by striking ``Sec. 737. Funds'' and inserting the
following:
``SEC. 737. SERVICES FOR APHIS PERFORMED OUTSIDE THE UNITED STATES.
``(a) In General.--Funds''; and
(2) by adding at the end the following:
``(b) Reimbursable Agreements.--
``(1) In general.--The Secretary of Agriculture may enter
into reimbursable fee agreements with persons for preclearance
at locations outside the United States of plants, plant
products, animals, and articles for movement to the United
States.
``(2) Overtime, night, and holiday work.--Notwithstanding
any other law, the Secretary of Agriculture may pay an employee
of the Department of Agriculture preforming services relating
to imports into and exports from the United States for
overtime, night, and holiday work performed by the employee at
a rate of pay established by the Secretary.
``(3) Reimbursement.--
``(A) In general.--The Secretary of Agriculture may
require persons for whom preclearance services are
performed to reimburse the Secretary for any amounts
paid by the Secretary for performance of the services.
``(B) Crediting of funds.--All funds collected
under subparagraph (A) shall be credited to the account
that incurs the costs and shall remain available until
expended without fiscal year limitation.
``(C) Late payment penalty.--
``(i) In general.--On failure of a person
to reimburse the Secretary of Agriculture for
the costs of performance of preclearance
services--
``(I) the Secretary may assess a
late payment penalty; and
``(II) the overdue funds shall
accrue interest in accordance with
section 3717 of title 31, United States
Code.
``(ii) Crediting of funds.--Any late
payment penalty and any accrued interest
collected under this subparagraph shall be
credited to the account that incurs the costs
and shall remain available until expended
without fiscal year limitation.''.
SEC. 544. SWINE HEALTH PROTECTION.
(a) Termination of State Primary Enforcement Responsibility.--
Section 10 of the Swine Health Protection Act (7 U.S.C. 3809) is
amended--
(1) by redesignating subsection (c) as subsection (d); and
(2) by inserting after subsection (b) the following:
``(c) Request of State Official.--
``(1) In general.--On request of the Governor or other
appropriate official of a State, the Secretary may terminate,
effective as soon as the Secretary determines is practicable,
the primary enforcement responsibility of a State under
subsection (a). In terminating the primary enforcement
responsibility under this subsection, the Secretary shall work
with the appropriate State official to determine the level of
support to be provided to the Secretary by the State under this
Act.
``(2) Reassumption.--Nothing in this subsection shall
prevent a State from reassuming primary enforcement
responsibility if the Secretary determines that the State meets
the requirements of subsection (a).''.
(b) Advisory Committee.--The Swine Health Protection Act is
amended--
(1) by striking section 11 (7 U.S.C. 3810); and
(2) by redesignating sections 12, 13, and 14 (7 U.S.C.
3811, 3812, and 3813) as sections 11, 12, and 13, respectively.
SEC. 545. COOPERATIVE WORK FOR PROTECTION, MANAGEMENT, AND IMPROVEMENT
OF NATIONAL FOREST SYSTEM.
The penultimate paragraph of the matter under the heading ``FOREST
SERVICE.'' of the first section of the Act of June 30, 1914 (38 Stat.
430, chapter 131; 16 U.S.C. 498), is amended--
(1) by inserting ``, management,'' after ``the
protection'';
(2) by striking ``national forests,'' and inserting
``National Forest System,'';
(3) by inserting ``management,'' after ``protection,'' both
places it appears; and
(4) by adding at the end the following new sentences:
``Payment for work undertaken pursuant to this paragraph may be
made from any appropriation of the Forest Service that is
available for similar work if a written agreement so provides
and reimbursement will be provided by a cooperator in the same
fiscal year as the expenditure by the Forest Service. A
reimbursement received from a cooperator that covers the
proportionate share of the cooperator of the cost of the work
shall be deposited to the credit of the appropriation of the
Forest Service from which the payment was initially made or, if
the appropriation is no longer available to the credit of an
appropriation of the Forest Service that is available for
similar work. The Secretary of Agriculture shall establish
written rules that establish criteria to be used to determine
whether the acceptance of contributions of money under this
paragraph would adversely affect the ability of an officer or
employee of the United States Department of Agriculture to
carry out a duty or program of the officer or employee in a
fair and objective manner or would compromise, or appear to
compromise, the integrity of the program, officer, or employee.
The Secretary of Agriculture shall establish written rules that
protect the interests of the Forest Service in cooperative work
agreements.''.
SEC. 546. AMENDMENT OF THE VIRUS-SERUM TOXIN ACT OF 1913.
The Act of March 4, 1913 (37 Stat. 828, chapter 145), is amended in
the eighth paragraph under the heading ``BUREAU OF ANIMAL INDUSTRY'',
commonly known as the ``Virus-Serum Toxin Act of 1913'', by striking
the 10th sentence (21 U.S.C. 158) and inserting ``A person, firm, or
corporation that knowingly violates any of the provisions of this
paragraph or regulations issued under this paragraph, or knowingly
forges, counterfeits, or, without authorization by the Secretary of
Agriculture, uses, alters, defaces, or destroys any certificate,
permit, license, or other document provided for in this paragraph, may,
for each violation, after written notice and opportunity for a hearing
on the record, be assessed a civil penalty by the Secretary of
Agriculture of not more than $5,000, or shall, on conviction, be
assessed a criminal penalty of not more than $10,000, imprisoned not
more than 1 year, or both. In the course of an investigation of a
suspected violation of this paragraph, the Secretary of Agriculture may
issue subpoenas requiring the attendance and testimony of witnesses and
the production of evidence that relates to the matter under
investigation. In determining the amount of a civil penalty, the
Secretary of Agriculture shall take into account the nature,
circumstances, extent, and gravity of the violation, the ability of the
violator to pay the penalty, the effect that the assessment would have
on the ability of the violator to continue to do business, any history
of such violations by the violator, the degree of culpability of the
violator, and such other matters as justice may require. An order
assessing a civil penalty shall be treated as a final order reviewable
under chapter 158 of title 28, United State's Code. The Secretary of
Agriculture may compromise, modify, or remit a civil penalty with or
without conditions. The amount of a civil penalty that is paid
(including any amount agreed on in compromise) may be deducted from any
sums owing by the United States to the violator. The total amount of
civil penalties assessed against a violator shall not exceed $300,000
for all such violations adjudicated in a single proceeding. The
validity of an order assessing a civil penalty shall not be subject to
review in an action to collect the civil penalty. The unpaid amount of
a civil penalty not paid in full when due shall accrue interest at the
rate of interest applicable to civil judgments of the courts of the
United States.''.
SEC. 547. OVERSEAS TORT CLAIMS.
Title VII of Public Law 102-142 (105 Stat. 911) is amended by
inserting after section 737 (7 U.S.C. 2277) the following:
``SEC. 737A. OVERSEAS TORT CLAIMS.
``The Secretary of Agriculture may pay a tort claim in the manner
authorized in section 2672 of title 28, United States Code, if the
claim arises outside the United States in connection with activities of
individuals who are performing services for the Secretary. A claim may
not be allowed under this section unless the claim is presented in
writing to the Secretary within 2 years after the date on which the
claim accrues.''.
SEC. 548. GRADUATE SCHOOL OF THE UNITED STATES DEPARTMENT OF
AGRICULTURE.
(a) Purpose.--The purpose of this section is to authorize the
continued operation of the Graduate School as a nonappropriated fund
instrumentality of the Department of Agriculture.
(b) Definitions.--In this section:
(1) Board.--The term ``Board'' means the General
Administration Board of the Graduate School.
(2) Department.--The term ``Department'' means the
Department of Agriculture.
(3) Director.--The term ``Director'' means the Director of
the Graduate School.
(4) Graduate school.--The term ``Graduate School'' means
the Graduate School of the United States Department of
Agriculture.
(5) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture.
(c) Functions and Authority.--
(1) In general.--The Graduate School shall continue as a
nonappropriated fund instrumentality of the Department under
the general supervision of the Secretary.
(2) Activities.--The Graduate School shall develop and
administer education, training, and professional development
activities, including the provision of educational activities
for Federal agencies, Federal employees, nonprofit
organizations, other entities, and members of the general
public.
(3) Fees.--
(A) In general.--The Graduate School may charge and
retain fair and reasonable fees for the activities that
it provides based on the cost of the activities to the
Graduate School.
(B) Not federal funds.--Fees under subparagraph (A)
shall not be considered to be Federal funds and shall
not required to be deposited in the Treasury of the
United States.
(4) Name.--The Graduate School shall operate under the name
``United States Department of Agriculture Graduate School'' or
such other name as the Graduate School may adopt.
(d) General Administration Board.--
(1) Appointment.--The Secretary shall appoint a General
Administration Board to serve as a governing board subject to
regulation by the Secretary.
(2) Supervision.--The Graduate School shall be subject to
the supervision and direction of the Board.
(3) Duties.--The Board shall--
(A) formulate broad policies in accordance with
which the Graduate School shall be administered;
(B) take all steps necessary to see that the
highest possible educational standards are maintained;
(C) exercise general supervision over the
administration of the Graduate School; and
(D) establish such bylaws, rules, and procedures as
may be necessary for the fulfillment of the duties
described in subparagraph (A), (B), and (C).
(4) Director and other officers.--The Board shall select
the Director and such other officers as the Board may consider
necessary, who shall serve on such terms and perform such
duties as the Board may prescribe.
(5) Borrowing.--The Board may authorize the Director to
borrow money on the credit of the Graduate School.
(e) Director of the Graduate School.--
(1) Duties.--The Director shall be responsible, subject to
the supervision and direction of the Board, for carrying out
the functions of the Graduate School.
(2) Investment of funds.--The Board may authorize the
Director to invest funds held in excess of the current
operating requirements of the Graduate School for purposes of
maintaining a reasonable reserve.
(f) Liability.--The Director and the members of the Board shall not
be held personally liable for any loss or damage that may accrue to the
funds of the Graduate School as the result of any act or exercise of
discretion performed in carrying out the duties described in this
section.
(g) Employees.--Employees of the Graduate School are employees of a
nonappropriated fund instrumentality and shall not be considered to be
Federal employees.
(h) Not a Federal Agency.--The Graduate School shall not be
considered to be a Federal Agency for purposes of--
(1) chapter 171 of title 28, United States Code;
(2) section 552 or 552a of title 28, United States Code; or
(3) the Federal Advisory Committee Act (5 U.S.C. App.).
(i) Acceptance of Donations.--The Graduate School shall not accept
a donation from a person that is actively engaged in a procurement
activity with the Graduate School or has an interest that may be
substantially affected by the performance or nonperformance of an
official duty of a member of the Board or an employee of the Graduate
School.
(j) Administrative Provisions.--In order to carry out the functions
of the Graduate School, the Graduate School may--
(1) accept, use, hold, dispose, and administer gifts,
bequests, or devises of money, securities, and other real or
personal property made for the benefit of, or in connection
with, the Graduate School;
(2) notwithstanding any other law--
(A) acquire real property in the District of
Columbia and in other places by lease, purchase, or
otherwise;
(B) maintain, enlarge, or remodel any such
property; and
(C) have sole control of any such property;
(3) enter into contracts without regard to the Federal
Property and Administrative Services Act of 1949 (40 U.S.C.
471) or any other law that prescribes procedures for the
procurement of property or services by an executive agency;
(4) dispose of real and personal property without regard to
the requirements of the Federal Property and Administrative
Services Act of 1949 (40 U.S.C. 471); and
(5) use the facilities and resources of the Department, on
the condition that any costs incurred by the Department that
are attributable solely to Graduate School operations and all
costs incurred by the Graduate School arising out of such
operations shall be borne by the fees paid by or on behalf of
students or by other means and not with Federal funds.
SEC. 549. STUDENT INTERN SUBSISTENCE PROGRAM.
(a) Definition.--In this section, the term ``student intern'' means
a person who--
(1) is employed by the Department of Agriculture to assist
scientific, professional, administrative, or technical
employees of the Department; and
(2) is a student in good standing at an accredited college
or university pursuing a course of study related to the field
in which the person is employed by the Department.
(b) Payment of Certain Expenses by the Secretary.--The Secretary of
Agriculture may, out of user fee funds or funds appropriated to any
agency, pay for lodging expenses, subsistence expenses, and
transportation expenses of a student intern (including expenses of
transportation to and from the student intern's residence at or near
the college or university attended by the student intern and the
official duty station at which the student intern is employed).
SEC. 550. CONVEYANCE OF LAND TO WHITE OAK CEMETERY.
(a) In General.--
(1) Release of interest.--After execution of the agreement
described in subsection (b), the Secretary of Agriculture shall
release the condition stated in the deed on the land described
in subsection (c) that the land be used for public purposes,
and that if the land is not so used, that the land revert the
United States, on the condition that the land be used
exclusively for cemetery purposes, and that if the land is not
so used, that the land revert the United States.
(2) Bankhead-jones act.--Section 32(c) of the Bankhead-
Jones Farm Tenant Act (7 U.S.C. 1011(c)) shall not apply to the
release under paragraph (1).
(b) Agreement.--The Secretary of Agriculture shall make the release
under in subsection (a) on execution by the Board of Trustees of the
University of Arkansas, in consideration of the release, of an
agreement, satisfactory to the Secretary of Agriculture, that--
(1) the Board of Trustees will not sell, lease, exchange,
or otherwise dispose of the land described in subsection (c)
except to the White Oak Cemetery Association of Washington
County, Arkansas, or a successor organization, for exclusive
use for an expansion of the cemetery maintained by the
Association; and
(2) the proceeds of such a disposition of the land will be
deposited and held in an account open to inspection by the
Secretary of Agriculture, and used, if withdrawn from the
account, for public purposes.
(c) Land Description.--The land described in this subsection is the
land conveyed to the Board of Trustees of the University of Arkansas,
with certain other land, by deed dated November 18, 1953, comprising
approximately 2.2 acres located within property of the University of
Arkansas in Washington, County, Arkansas, commonly known as the ``Savor
property'' and described as follows:
The part of Section 20, Township 17 north, range 31 west,
beginning at the north corner of the White Oak Cemetery and the
University of Arkansas Agricultural Experiment Station farm at
Washington County road #874, running west approximately 330
feet, thence south approximately 135 feet, thence southeast
approximately 384 feet, thence north approximately 330 feet to
the point of beginning.
SEC. 551. ADVISORY BOARD ON AGRICULTURAL AIR QUALITY.
(a) Findings.--Congress finds that--
(1) various studies have identified agriculture as a major
atmospheric polluter;
(2) Federal research activities are underway to determine
the extent of the pollution problem and the extent of the role
of agriculture in the problem; and
(3) any Federal policy decisions that may result, and any
Federal regulations that may be imposed on the agricultural
sector, should be based on sound scientific findings;
(b) Purpose.--The purpose of this section is to establish an
advisory board to assist and provide the Secretary of Agriculture with
information, analyses, and policy recommendations for determining
matters of fact and technical merit and addressing scientific questions
dealing with particulate matter less than 10 microns that become lodged
in human lungs (known as ``PM10'') and other airborne particulate
matter or gases that affect agricultural production yields and the
economy.
(c) Establishment.--
(1) In general.--The Secretary of Agriculture may establish
a board to be known as the ``Advisory Board on Agricultural Air
Quality'' (referred to in this section as the ``Board'') to
advise the Secretary, through the Chief of the Natural
Resources Conservation Service, with respect to carrying out
this act and obligations agriculture incurred under the Clean
Air Act (42 U.S.C. 7401 et seq.) and the Act entitled `An Act
to amend the Clean Air Act to provide for attainment and
maintenance of health protective national ambient air quality
standards, and for other purposes', approved November 15, 1990
(commonly known as the `Clean Air Act Amendments of 1990') (42
U.S.C. 7401 et seq.).
(2) Oversight coordination.--The Secretary of Agriculture
shall provide oversight and coordination with respect to other
Federal departments and agencies to ensure intergovernmental
cooperation in research activities and to avoid duplication of
Federal efforts.
(d) Composition.--
(1) In general.--The Board shall be composed of at least 17
members appointed by the Secretary in consultation with the
Administrator of the Environmental Protection Agency.
(2) Regional representation.--The membership of the Board
shall be 2 persons from each of the 6 regions of the Natural
Resources Conservation Service, of whom 1 from each region
shall be an agricultural producer.
(3) Atmospheric scientist.--At least 1 member of the Board
shall be an atmospheric scientist.
(e) Chairperson.--The Chief of the Natural Resources Conservation
Service shall--
(1) serve as chairman of the Board; and
(2) provide technical support to the Board.
(f) Term.--Each member of the Board shall be appointed for a 3-year
term, except that the Secretary of Agriculture shall appoint 4 of the
initial members for a term of 1 year and 4 for a term of 2 years.
(g) Meetings.--The Board shall meet not less than twice annually.
(h) Compensation.--Members of the Board shall serve without
compensation, but while away from their homes or regular place of
business in performance of services for the Board, members of the Board
shall be allowed travel expenses, including a per diem allowance in
lieu of subsistence, in the same manner as persons employed in
Government service are allowed travel expenses under section 5703 of
title 5, United States Code.
(i) Funding.--The Board shall be funded using appropriations for
conservation operations.
SEC. 552. WATER SYSTEMS FOR RURAL AND NATIVE VILLAGES IN ALASKA.
The Consolidated Farm and Rural Development Act is amended by
inserting after section 306C (7 U.S.C. 1926c) the following:
``SEC. 306D. WATER SYSTEMS FOR RURAL AND NATIVE VILLAGES IN ALASKA.
``(a) In General.--The Secretary may make grants to the State of
Alaska for the benefit of rural or Native villages in Alaska to provide
for the development and construction of water and wastewater systems to
improve the health and sanitation conditions in those villages.
``(b) Matching Funds.--To be eligible to receive a grant under
subsection (a), the State of Alaska shall provide equal matching funds
from non-Federal sources.
``(c) Consultation with the State of Alaska.--The Secretary shall
consult with the State of Alaska on a method of prioritizing the
allocation of grants under subsection (a) according to the needs of,
and relative health and sanitation conditions in, each village.
``(d) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $15,000,000 for each of fiscal
years 1996 through 2002.''.
SEC. 553. ELIGIBILITY FOR GRANTS TO BROADCASTING SYSTEMS.
Section 310B(j) of the Consolidated Farm and Rural Development Act
(7 U.S.C. 1932(j)) is amended by striking ``Systems.--The'' and
inserting the following: ``Systems.--
``(1) Definition of statewide.--In this subsection, the
term `statewide' means having a coverage area of not less than
90 percent of the population of a State and 80 percent of the
rural land area of the State (as determined by the Secretary).
``(2) Grants.--The''.
SEC. 554. WILDLIFE HABITAT INCENTIVES PROGRAM.
(a) In General.--The Secretary of Agriculture, in consultation with
the State Technical Committee, shall establish a program in the Natural
Resources Conservation Service to be known as the Wildlife Habitat
Incentive Program.
(b) Cost-Share Payments.--The Program shall make cost-share
payments to landowners to develop upland wildlife, wetland wildlife,
threatened and endangered species, fisheries, and other types of
wildlife habitat approved by the Secretary.
(c) Funding.--To carry out this section, $10,000,000 shall be made
available for each of fiscal years 1996 through 2002 from funds made
available to carry out subchapter B of chapter 1 of subtitle D of title
XII of the Food Security Act of 1985 (16 U.S.C. 3831 et seq.).
SEC. 555. INDIAN RESERVATIONS.
(a) Indian Reservation Extension Agent Program.--
(1) Reauthorization.--The program established under section
1677 of the Food, Agriculture, Conservation, and Trade Act of
1990 (7 U.S.C. 5930) is reauthorized through fiscal year 2002.
(2) Reduced regulatory burden.--On a determination by the
Secretary of Agriculture that a program carried out under
section 1677 of the Act (7 U.S.C. 5930) has been satisfactorily
administered for not less than 2 years, the Secretary shall
implement a reduced re-application process for the continued
operation of the program in order to reduce regulatory burdens
on participating university and tribal entities.
(b) Memorandum of Agreement.--
(1) In general.--Not later than January 6, 1997, the
Secretary shall develop and implement a formal Memorandum of
Agreement with the 29 tribally controlled colleges eligible
under Federal law to receive funds from the Secretary of
Agriculture as partial land grant institutions.
(2) Equitable participation.--The Memorandum shall
establish programs to ensure that tribally-controlled colleges
and Native American communities equitably participate in
Department of Agriculture employment programs, services, and
resources.
SEC. 556. ICD REIMBURSEMENT FOR OVERHEAD EXPENSES.
Section 1542(d)(1)(D) of the Food, Agriculture, Conservation, and
Trade Act of 1990 (Public Law 101-624;7 U.S.C. 5622 note) is amended by
adding at the end the following: ``Notwithstanding any other provision
of law, the assistance shall include assistance for administrative and
overhead expenses, to the extent that the expenses were incurred
pursuant to reimbursable agreements entered into prior to September 30,
1993, the expenses do not exceed $2,000,000 per year, and the expenses
were not incurred for information technology systems.''.
SEC. 557. CLARIFICATION OF EFFECT OF RESOURCE PLANNING ON ALLOCATION OR
USE OF WATER.
(a) National Forest System Resource Planning.--Section 6 of the
Forest and Rangeland Renewable Resources Planning Act of 1974 (16
U.S.C. 1604) is amended by adding at the end the following new
subsection:
``(n) Limitation on Authority.--Nothing in this section shall be
construed to supersede, abrogate or otherwise impair any right or
authority of a State to allocate quantities of water (including
boundary waters). Nothing in this section shall be implemented,
enforced, or construed to allow any officer or agency of the United
States to utilize directly or indirectly the authorities established
under this section to impose any requirement not imposed by the State
which would supersede, abrogate, or otherwise impair rights to the use
of water resources allocated under State law, interstate water compact,
or Supreme Court decree, or held by the United States for use by a
State, its political subdivisions, or its citizens. No water rights
arise in the United States or any other person under the provisions of
this Act.''.
(b) Authorization to Grant Rights-of-Way.--Section 501 of the
Federal Land Policy and Management Act of 1976 (43 U.S.C. 1761) is
amended as it applies to the Secretary of Agriculture--
(1) in subsection (c)(1)--
(A) by striking subparagraph (B);
(B) in subparagraph (D), by striking ``originally
constructed'';
(C) in subparagraph (G), by striking ``1996'' and
inserting ``1998''; and
(D) by redesignating subparagraphs (C) through (G)
as subparagraphs (B) through (F), respectively;
(2) in subsection (c)(3)(A), by striking the second and
third sentences; and
(3) by adding at the end the following new subsection:
``(e) Effect on Valid Existing Rights.--Notwithstanding any
provision of this section, the Secretary of Agriculture may not
require, as a condition of, or in connection with, the renewal of a
right-of-way under this section, a restriction or limitation on the
operation, use, repair, or replacement of an existing water supply
facility which is located on or above National Forest lands or the
exercise and use of existing water rights, if such condition would
reduce the quantity of water which would otherwise be made available
for use by the owner of such facility or water rights, or cause an
increase in the cost of the water supply provided from such
facility.''.
TITLE VI--CREDIT
Subtitle A--Agricultural Credit
CHAPTER 1--FARM OWNERSHIP LOANS
SEC. 601. LIMITATION ON DIRECT FARM OWNERSHIP LOANS.
Section 302 of the Consolidated Farm and Rural Development Act (7
U.S.C. 1922) is amended by striking subsection (b) and inserting the
following:
``(b) Direct Loans.--
``(1) In general.--Subject to paragraph (3), the Secretary
may only make a direct loan under this subtitle to a farmer or
rancher who has operated a farm or ranch for not less than 3
years and--
``(A) is a qualified beginning farmer or rancher;
``(B) has not received a previous direct farm
ownership loan made under this subtitle; or
``(C) has not received a direct farm ownership loan
under this subtitle more than 10 years before the date
the new loan would be made.
``(2) Youth Loans.--The operation of an enterprise by a
youth under section 311(b) shall not be considered the
operation of a farm or ranch for purposes of paragraph (1).
``(3) Transition Rule.--
``(A) In general.--Subject to subparagraphs (B) and
(C), paragraph (1) shall not apply to a farmer or
rancher who has a direct loan outstanding under this
subtitle on the date of enactment of this paragraph.
``(B) Less than 5 years.--If, as of the date of
enactment of this paragraph, a farmer or rancher has
had a direct loan outstanding under this subtitle for
less than 5 years, the Secretary shall not make another
loan to the farmer or rancher under this subtitle after
the date that is 10 years after the date of enactment
of this paragraph.
``(C) 5 years or more.--If, as of the date of
enactment of this paragraph, a farmer or rancher has
had a direct loan outstanding under this subtitle for 5
years or more, the Secretary shall not make another
loan to the farmer or rancher under this subtitle after
the date that is 5 years after the date of enactment of
this paragraph.''.
SEC. 602. PURPOSES OF LOANS.
Section 303 of the Consolidated Farm and Rural Development Act (7
U.S.C. 1923) is amended to read as follows:
``SEC. 303. PURPOSES OF LOANS.
``(a) Allowed Purposes.--
``(1) Direct loans.--A farmer or rancher may use a direct
loan made under this subtitle only for--
``(A) acquiring or enlarging a farm or ranch;
``(B) making capital improvements to a farm or
ranch;
``(C) paying loan closing costs related to
acquiring, enlarging, or improving a farm or ranch; or
``(D) paying for activities to promote soil and
water conservation and protection under section 304 on
the farm or ranch.
``(2) Guaranteed loans.--A farmer or rancher may use a loan
guaranteed under this subtitle only for--
``(A) acquiring or enlarging a farm or ranch;
``(B) making capital improvements to a farm or
ranch;
``(C) paying loan closing costs related to
acquiring, enlarging, or improving a farm or ranch;
``(D) paying for activities to promote soil and
water conservation and protection under section 304 on
the farm or ranch; or
``(E) refinancing indebtedness.
``(b) Preferences.--In making or guaranteeing a loan for farm or
ranch purchase, the Secretary shall give a preference to a person who--
``(1) has a dependent family;
``(2) to the extent practicable, is able to make an initial
down payment; or
``(3) is an owner of livestock or farm or ranch equipment
that is necessary to successfully carry out farming or ranching
operations.
``(c) Hazard Insurance Requirement.--
``(1) In general.--The Secretary may not make a loan to a
farmer or rancher under this subtitle unless the farmer or
rancher has, or agrees to obtain, hazard insurance on any real
property to be acquired or improved with the loan.
``(2) Determination.--Not later than 180 days after the
date of enactment of this subsection, the Secretary shall
determine the appropriate level of insurance to be required
under paragraph (1).
``(3) Transitional provision.--Paragraph (1) shall not
apply until the Secretary makes the determination required
under paragraph (2).''.
SEC. 603. SOIL AND WATER CONSERVATION AND PROTECTION.
Section 304 of the Consolidated Farm and Rural Development Act (7
U.S.C. 1924) is amended--
(1) by striking subsections (b) and (c);
(2) by striking ``Sec. 304. (a)(1) Loans'' and inserting
the following:
``SEC. 304. SOIL AND WATER CONSERVATION AND PROTECTION.
``(a) In General.--Loans'';
(3) by striking ``(2) In making or insuring'' and inserting
the following:
``(b) Priority.--In making or guaranteeing'';
(4) by striking ``(3) The Secretary'' and inserting the
following:
``(c) Loan Maximum.--The Secretary'';
(5) by redesignating subparagraphs (A) through (F) of
subsection (a) (as amended by paragraph (2)) as paragraphs (1)
through (6), respectively; and
(6) by redesignating subparagraphs (A) and (B) of
subsection (c) (as amended by paragraph (4)) as paragraphs (1)
and (2), respectively.
SEC. 604. INTEREST RATE REQUIREMENTS.
Section 307(a)(3) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1927(a)(3)) is amended--
(1) in subparagraph (B), by inserting ``subparagraph (D)
and in'' after ``Except as provided in''; and
(2) by adding at the end the following:
``(D) Joint financing arrangement.--If a direct farm
ownership loan is made under this subtitle as part of a joint
financing arrangement and the amount of the direct farm
ownership loan does not exceed 50 percent of the total
principal amount financed under the arrangement, the interest
rate on the direct farm ownership loan shall be 4 percent
annually.''.
SEC. 605. INSURANCE OF LOANS.
Section 308 of the Consolidated Farm and Rural Development Act (7
U.S.C. 1928) is amended to read as follows:
``SEC. 308. FULL FAITH AND CREDIT.
``(a) In General.--A contract of insurance or guarantee executed by
the Secretary under this title shall be an obligation supported by the
full faith and credit of the United States.
``(b) Contestability.--A contract of insurance or guarantee
executed by the Secretary under this title shall be incontestable
except for fraud or misrepresentation that the lender or any holder--
``(1) has actual knowledge of at the time the contract or
guarantee is executed; or
``(2) participates in or condones.''.
SEC. 606. LOANS GUARANTEED.
Section 309(h) of the Consolidated Farm and Rural Development Act
(7 U.S.C. 1929(h)) is amended by adding at the end the following:
``(4) Maximum guarantee of 90 percent.--Except as provided
in paragraph (5), a loan guarantee under this title shall be
for not more than 90 percent of the principal and interest due
on the loan.
``(5) Refinanced loans guaranteed at 95 percent.--The
Secretary shall guarantee 95 percent of--
``(A) in the case of a loan that solely refinances
a direct loan made under this title, the principal and
interest due on the loan on the date of the
refinancing; or
``(B) in the case of a loan that is used for
multiple purposes, the portion of the loan that
refinances the principal and interest due on a direct
loan made under this title that is outstanding on the
date the loan is guaranteed.
``(6) Beginning farmer loans guaranteed up to 95 percent.--
The Secretary may guarantee up to 95 percent of--
``(A) a farm ownership loan for acquiring a farm or
ranch to a borrower who is participating in the down
payment loan program under section 310E; or
``(B) an operating loan to a borrower who is
participating in the down payment loan program under
section 310E that is made during the period that the
borrower has a direct loan for acquiring a farm or
ranch.''.
CHAPTER 2--OPERATING LOANS
SEC. 611. LIMITATION ON DIRECT OPERATING LOANS.
(a) In General.--Section 311 of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1941) is amended by striking subsection (c)
and inserting the following:
``(c) Direct Loans.--
``(1) In general.--Subject to paragraph (3), the Secretary
may only make a direct loan under this subtitle to a farmer or
rancher who--
``(A) is a qualified beginning farmer or rancher
who has not operated a farm or ranch, or who has
operated a farm or ranch for not more than 5 years;
``(B) has not had a previous direct operating loan
under this subtitle; or
``(C) has not had a previous direct operating loan
under this subtitle for more than 7 years.
``(2) Youth Loans.--In this subsection, the term `direct
operating loan' shall not include a loan made to a youth under
subsection (b).
``(3) Transition Rule.--If, as of the date of enactment of
this paragraph, a farmer or rancher has received a direct
operating loan under this subtitle during each of 4 or more
previous years, the borrower shall be eligible to receive a
direct operating loan under this subtitle during 3 additional
years after the date of enactment of this paragraph.''.
(b) Youth Enterprises Not Farming or Ranching.--Section 311(b) of
the Consolidated Farm and Rural Development Act (7 U.S.C. 1941(b)) is
amended by adding at the end the following:
``(4) Youth enterprises not farming or ranching.--The
operation of an enterprise by a youth under this subsection
shall not be considered the operation of a farm or ranch under
this title.''.
SEC. 612. PURPOSES OF OPERATING LOANS.
Section 312 of the Consolidated Farm and Rural Development Act (7
U.S.C. 1942) is amended to read as follows:
``SEC. 312. PURPOSES OF LOANS.
``(a) In General.--A direct loan may be made under this subtitle
only for--
``(1) paying the costs incident to reorganizing a farming
or ranching system for more profitable operation;
``(2) purchasing livestock, poultry, or farm or ranch
equipment;
``(3) purchasing feed, seed, fertilizer, insecticide, or
farm or ranch supplies, or to meet other essential farm or
ranch operating expenses, including cash rent;
``(4) financing land or water development, use, or
conservation;
``(5) paying loan closing costs;
``(6) assisting a farmer or rancher in effecting an
addition to, or alteration of, the equipment, facilities, or
methods of operation of a farm or ranch to comply with a
standard promulgated under section 6 of the Occupational Safety
and Health Act of 1970 (29 U.S.C. 655) or a standard adopted by
a State under a plan approved under section 18 of the Act (29
U.S.C. 667), if the Secretary determines that without
assistance under this paragraph the farmer or rancher is likely
to suffer substantial economic injury due to compliance with
the standard;
``(7) training a limited-resource borrower receiving a loan
under section 310D in maintaining records of farming and
ranching operations;
``(8) training a borrower under section 359;
``(9) refinancing the indebtedness of a borrower if the
borrower--
``(A) has refinanced a loan under this subtitle not
more than 4 times previously; and
``(B)(i) is a direct loan borrower under this title
at the time of the refinancing and has suffered a
qualifying loss because of a natural disaster declared
by the Secretary under this title or a major disaster
or emergency designated by the President under the
Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5121 et seq.); or
``(ii) is refinancing a debt obtained from a
creditor other than the Secretary; or
``(10) providing other farm, ranch, or home needs,
including family subsistence.
``(b) Guaranteed Loans.--A loan may be guaranteed under this
subtitle only for--
``(1) paying the costs incident to reorganizing a farming
or ranching system for more profitable operation;
``(2) purchasing livestock, poultry, or farm or ranch
equipment;
``(3) purchasing feed, seed, fertilizer, insecticide, or
farm or ranch supplies, or to meet other essential farm or
ranch operating expenses, including cash rent;
``(4) financing land or water development, use, or
conservation;
``(5) refinancing indebtedness;
``(6) paying loan closing costs;
``(7) assisting a farmer or rancher in effecting an
addition to, or alteration of, the equipment, facilities, or
methods of operation of a farm or ranch to comply with a
standard promulgated under section 6 of the Occupational Safety
and Health Act of 1970 (29 U.S.C. 655) or a standard adopted by
a State under a plan approved under section 18 of the Act (29
U.S.C. 667), if the Secretary determines that without
assistance under this paragraph the farmer or rancher is likely
to suffer substantial economic injury due to compliance with
the standard;
``(8) training a borrower under section 359; or
``(9) providing other farm, ranch, or home needs, including
family subsistence.
``(c) Hazard Insurance Requirement.--
``(1) In general.--The Secretary may not make a loan to a
farmer or rancher under this subtitle unless the farmer or
rancher has, or agrees to obtain, hazard insurance on any
property to be acquired with the loan.
``(2) Determination.--Not later than 180 days after the
date of enactment of this paragraph, the Secretary shall
determine the appropriate level of insurance to be required
under paragraph (1).
``(3) Transitional provision.--Paragraph (1) shall not
apply until the Secretary makes the determination required
under paragraph (2).
``(d) Private Reserve.--
``(1) In general.--Notwithstanding any other provision of
this title, the Secretary may reserve the lesser of 10 percent
or $5,000 of the amount of a direct loan made under this
subtitle, to be placed in a nonsupervised bank account that may
be used at the discretion of the borrower for any necessary
family living need or purpose that is consistent with any
farming or ranching plan agreed to by the Secretary and the
borrower prior to the date of the loan.
``(2) Adjustment of reserve.--If a borrower exhausts the
amount of funds reserved under paragraph (1), the Secretary
may--
``(A) review and adjust the farm or ranch plan
referred to in paragraph (1) with the borrower and
reschedule the loan;
``(B) extend additional credit;
``(C) use income proceeds to pay necessary farm,
ranch, home, or other expenses; or
``(D) provide additional available loan
servicing.''.
SEC. 613. PARTICIPATION IN LOANS.
Section 315 of the Consolidated Farm and Rural Development Act (7
U.S.C. 1945) is repealed.
SEC. 614. LINE-OF-CREDIT LOANS.
Section 316 of the Consolidated Farm and Rural Development Act (7
U.S.C. 1946) is amended by adding at the end the following:
``(c) Line-of-Credit Loans.--
``(1) In general.--A loan made or guaranteed by the
Secretary under this subtitle may be in the form of a line-of-
credit loan.
``(2) Term.--A line-of-credit loan under paragraph (1)
shall terminate not later than 5 years after the date that the
loan is made or guaranteed.
``(3) Eligibility.--For purposes of determining eligibility
for a farm operating loan, each year in which a farmer or
rancher takes an advance or draws on a line-of-credit loan the
farmer or rancher shall be considered to have received an
operating loan for 1 year.''.
SEC. 615. INSURANCE OF OPERATING LOANS.
Section 317 of the Consolidated Farm and Rural Development Act (7
U.S.C. 1947) is repealed.
SEC. 616. SPECIAL ASSISTANCE FOR BEGINNING FARMERS AND RANCHERS.
(a) In General.--Section 318 of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1948) is repealed.
(b) Conforming Amendment.--Section 310F of the Consolidated Farm
and Rural Development Act (7 U.S.C. 1936) is repealed.
SEC. 617. LIMITATION ON PERIOD FOR WHICH BORROWERS ARE ELIGIBLE FOR
GUARANTEED ASSISTANCE.
Section 319 of the Consolidated Farm and Rural Development Act (7
U.S.C. 1949) is amended by striking subsection (b) and inserting the
following:
``(b) Limitation on Period Borrowers Are Eligible for Guaranteed
Assistance.--
``(1) General rule.--Subject to paragraph (2), the
Secretary shall not guarantee a loan under this subtitle for a
borrower for any year after the 15th year that a loan is made
to, or a guarantee is provided with respect to, the borrower
under this subtitle.
``(2) Transition rule.--If, as of October 28, 1992, a
farmer or rancher has received a direct or guaranteed operating
loan under this subtitle during each of 10 or more previous
years, the borrower shall be eligible to receive a guaranteed
operating loan under this subtitle during 5 additional years
after October 28, 1992.''.
CHAPTER 3--EMERGENCY LOANS
SEC. 621. HAZARD INSURANCE REQUIREMENT.
Section 321 of the Consolidated Farm and Rural Development Act (7
U.S.C. 1961) is amended by striking subsection (b) and inserting the
following:
``(b) Hazard Insurance Requirement.--
``(1) In general.--The Secretary may not make a loan to a
farmer or rancher under this subtitle to cover a property loss
unless the farmer or rancher had hazard insurance that insured
the property at the time of the loss.
``(2) Determination.--Not later than 180 days after the
date of enactment of this paragraph, the Secretary shall
determine the appropriate level of insurance to be required
under paragraph (1).
``(3) Transitional provision.--Paragraph (1) shall not
apply until the Secretary makes the determination required
under paragraph (2).''.
SEC. 622. MAXIMUM EMERGENCY LOAN INDEBTEDNESS.
Section 324 of the Consolidated Farm and Rural Development Act (7
U.S.C. 1964) is amended by striking ``Sec. 324. (a) No loan'' and all
that follows through the end of subsection (a) and inserting the
following:
``SEC. 324. TERMS OF LOANS.
``(a) Maximum Amount of Loan.--The Secretary may not make a loan
under this subtitle that--
``(1) exceeds the actual loss caused by a disaster; or
``(2) would cause the total indebtedness of the borrower
under this subtitle to exceed $500,000.''.
SEC. 623. INSURANCE OF EMERGENCY LOANS.
Section 328 of the Consolidated Farm and Rural Development Act (7
U.S.C. 1968) is repealed.
CHAPTER 4--ADMINISTRATIVE PROVISIONS
SEC. 631. USE OF COLLECTION AGENCIES.
Section 331 of the Consolidated Farm and Rural Development Act (7
U.S.C. 1981) is amended by adding at the end the following:
``(d) Private Collection Agency.--The Secretary may use a private
collection agency to collect a claim or obligation described in
subsection (b)(5).''.
SEC. 632. NOTICE OF LOAN SERVICE PROGRAMS.
Section 331D(a) of the Consolidated Farm and Rural Development Act
(7 U.S.C. 1981d(a)) is amended by striking ``180 days delinquent in''
and inserting ``90 days past due on''.
SEC. 633. SALE OF PROPERTY.
Section 335 of the Consolidated Farm and Rural Development Act (7
U.S.C. 1985) is amended--
(1) in subsection (b), by striking ``subsection (e)'' and
inserting ``subsections (c) and (e)'';
(2) by striking subsection (c) and inserting the following:
``(c) Sale of Property.--
``(1) In general.--Subject to this subsection and
subsection (e)(1)(A), the Secretary shall offer to sell real
property that is acquired by the Secretary under this title in
the following order and method of sale:
``(A) Advertisement.--Not later than 15 days after
acquiring real property, the Secretary shall publicly
advertise the property for sale.
``(B) Beginning farmer or rancher.--
``(i) In general.--Not later than 75 days
after acquiring real property, the Secretary
shall attempt to sell the property to a
qualified beginning farmer or rancher at
current market value based on a current
appraisal.
``(ii) Random selection.--If more than 1
qualified beginning farmer or rancher offers to
purchase the property, the Secretary shall
select between the qualified applicants on a
random basis.
``(iii) Appeal of random selection.--A
random selection or denial by the Secretary of
a beginning farmer or rancher for farm
inventory property under this subparagraph
shall be final and not administratively
appealable.
``(C) Public sale.--If no acceptable offer is
received from a qualified beginning farmer or rancher
under subparagraph (B) within 75 days of acquiring the
real property, the Secretary shall, within 30 days,
sell the property after public notice at a public sale,
and, if no acceptable bid is received, by negotiated
sale, at the best price obtainable.
``(2) Transitional rules.--
``(A) Previous lease.--In the case of real property
acquired prior to the date of enactment of this
subparagraph that the Secretary leased prior to the
date of enactment of this subparagraph, the Secretary
shall offer to sell the property according to paragraph
(1) not later than 60 days after the lease expires.
``(B) Previously in inventory.--In the case of real
property acquired prior to the date of enactment of
this subparagraph that the Secretary has not leased,
the Secretary shall offer to sell the property
according to paragraph (1) not later than 60 days after
the date of enactment of this subparagraph.
``(3) Interest.--
``(A) In general.--Subject to subparagraph (B), any
conveyance under this subsection shall include all of
the interest of the United States, including mineral
rights.
``(B) Conservation.--The Secretary may for
conservation purposes grant or sell an easement,
restriction, development right, or similar legal right
to a State, a political subdivision of a State, or a
private nonprofit organization separately from the
underlying fee or other rights owned by the Secretary.
``(4) Other law.--This title shall not be subject to the
Federal Property and Administrative Services Act of 1949 (40
U.S.C. 471 et seq.).
``(5) Lease of property.--
``(A) In general.--Subject to subparagraph (B), the
Secretary may not lease any real property acquired
under this title.
``(B) Exception.--
``(i) Beginning farmer or rancher.--
Notwithstanding paragraph (1), the Secretary
may lease or contract to sell a farm or ranch
acquired by the Secretary under this title to a
beginning farmer or rancher if the beginning
farmer or rancher qualifies for a credit sale
or direct farm ownership loan but credit sale
authority for loans or direct farm ownership
funds, respectively, are not available.
``(ii) Term.--A lease or contract to sell
to a beginning farmer or rancher under clause
(i) shall be until the earlier of--
``(I) the date that is 18 months
after the date of the lease or sale; or
``(II) the date that direct farm
ownership loan funds or credit sale
authority for loans become available to
the beginning farmer or rancher.
``(iii) Income-producing capability.--In
determining the rental rate on real property
leased under this subparagraph, the Secretary
shall consider the income-producing capability
of the property during the term that the
property is leased.
``(6) Determination by secretary.--
``(A) Expedited review.--On the request of an
applicant, the Secretary shall provide within 30 days
of denial of the applicant's application for an
expedited review by the appropriate State Director of
whether the applicant is a beginning farmer or rancher
for the purpose of acquiring farm inventory property.
``(B) Appeal.--The results of a review conducted by
a State Director under subparagraph (A) shall be final
and not administratively appealable.
``(C) Effects of review.--
``(i) In general.--The Secretary shall
maintain statistical data on the number and
results of reviews conducted under subparagraph
(A) and whether the reviews adversely impact
on--
``(I) selling farm inventory
property to beginning farmers and
ranchers; and
``(II) disposing of real property
in inventory.
``(ii) Notification.--The Secretary shall
notify the Committee on Agriculture of the
House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the
Senate if the Secretary determines that reviews
under subparagraph (A) are adversely impacting
the selling of farm inventory property to
beginning farmers or ranchers or on disposing
of real property in inventory.''; and
(3) in subsection (e)--
(A) in paragraph (1)--
(i) by striking subparagraphs (A) through
(C);
(ii) by redesignating subparagraphs (D)
through (G) as subparagraphs (A) through (D),
respectively;
(iii) in subparagraph (A) (as redesignated
by clause (ii))--
(I) in clause (i)--
(aa) in the matter
preceding subclause (I), by
striking ``(G)'' and inserting
``(D)'';
(bb) by striking subclause
(I) and inserting the
following:
``(I) the Secretary acquires property under this title that
is located within an Indian reservation; and'';
(cc) in subclause (II), by
striking ``, and'' at the end
and inserting a semicolon; and
(dd) by striking subclause
(III); and
(II) in clause (iii), by striking
``The Secretary shall'' and all that
follows through ``of subparagraph
(A),'' and inserting ``Not later than
90 days after acquiring the property,
the Secretary shall''; and
(iv) in subparagraph (D) (as redesignated
by clause (ii))--
(I) in clause (i), by striking
``(D)'' in the matter following
subclause (IV) and inserting ``(A)'';
(II) in clause (iii)(I), by
striking ``subparagraphs (C)(i),
(C)(ii), and (D)'' and inserting
``subparagraph (A)''; and
(III) by striking clause (v) and
inserting the following:
``(v) Foreclosure procedures.--
``(I) Notice to borrower.--If a
borrower-owner does not voluntarily
convey to the Secretary real property
described in clause (i), not less than
30 days before a foreclosure sale of
the property the Secretary shall
provide the Indian borrower-owner with
the option of--
``(aa) requiring the
Secretary to assign the loan
and security instruments to the
Secretary of the Interior,
provided the Secretary of the
Interior agrees to the
assignment, releasing the
Secretary of Agriculture from
all further responsibility for
collection of any amounts with
regard to the loan secured by
the real property; or
``(bb) requiring the
Secretary to assign the loan
and security instruments to the
tribe having jurisdiction over
the reservation in which the
real property is located,
provided the tribe agrees to
the assignment.
``(II) Notice to tribe.--If a
borrower-owner does not voluntarily
convey to the Secretary real property
described in clause (i), not less than
30 days before a foreclosure sale of
the property the Secretary shall
provide written notice to the Indian
tribe that has jurisdiction over the
reservation in which the real property
is located of--
``(aa) the sale;
``(bb) the fair market
value of the property; and
``(cc) the requirements of
this subparagraph.
``(III) Assumed Loans.--If an
Indian tribe assumes a loan under
subclause (I)--
``(aa) the Secretary shall
not foreclose the loan because
of any default that occurred
prior to the date of the
assumption;
``(bb) the loan shall be
for the lesser of the
outstanding principal and
interest of the loan or the
fair market value of the
property; and
``(cc) the loan shall be
treated as though the loan was
made under Public Law 91-229
(25 U.S.C. 488 et seq.).'';
(B) by striking paragraph (3);
(C) in paragraph (4)--
(i) by striking subparagraph (B);
(ii) in subparagraph (A)--
(I) in clause (i), by striking
``(i)''; and
(II) by redesignating clause (ii)
as subparagraph (B); and
(iii) in subparagraph (B) (as redesignated
by clause (ii)(II)), by striking ``clause (i)''
and inserting ``subparagraph (A)'';
(D) by striking paragraph (5);
(E) by striking paragraph (6);
(F) by redesignating paragraph (4) as paragraph
(3); and
(G) by redesignating paragraphs (7) through (10) as
paragraphs (4) through (7), respectively.
SEC. 634. DEFINITIONS.
Section 343(a) of the Consolidated Farm and Rural Development Act
(7 U.S.C. 1991(a)) is amended--
(1) in paragraph (11)--
(A) in the text preceding subparagraph (A), by
striking ``applicant--'' and inserting ``applicant,
regardless of whether participating in a program under
section 310E--''; and
(B) in subparagraph (F)--
(i) by striking ``15 percent'' and
inserting ``35 percent''; and
(ii) by inserting before the semicolon at
the end the following: ``, except that this
subparagraph shall not apply to loans under
subtitle B''; and
(2) by adding at the end the following:
``(12) Debt forgiveness.--
``(A) In general.--The term `debt forgiveness'
means reducing or terminating a farm loan made or
guaranteed under this title, in a manner that results
in a loss to the Secretary, through--
``(i) writing-down or writing-off a loan
under section 353;
``(ii) compromising, adjusting, reducing,
or charging-off a debt or claim under section
331;
``(iii) paying a loss on a guaranteed loan
under section 357; or
``(iv) discharging a debt as a result of
bankruptcy.
``(B) Loan restructuring.--The term `debt
forgiveness' does not include consolidation,
rescheduling, reamortization, or deferral.''.
SEC. 635. AUTHORIZATION FOR LOANS.
Section 346 of the Consolidated Farm and Rural Development Act (7
U.S.C. 1994) is amended--
(1) in the second sentence of subsection (a), by striking
``with or without'' and all that follows through
``administration'' and inserting the following: ``without
authority for the Secretary to transfer amounts between the
categories''; and
(2) by striking subsection (b) and inserting the following:
``(b) Authorization for Loans.--
``(1) In general.--The Secretary may make or guarantee
loans under subtitles A and B from the Agricultural Credit
Insurance Fund established under section 309 in not more than
the following amounts:
``(A) Fiscal year 1996.--For fiscal year 1996,
$3,085,000,000, of which--
``(i) $585,000,000 shall be for direct
loans, of which--
``(I) $85,000,000 shall be for farm
ownership loans under subtitle A; and
``(II) $500,000,000 shall be for
operating loans under subtitle B; and
``(ii) $2,500,000,000 shall be for
guaranteed loans, of which--
``(I) $600,000,000 shall be for
farm ownership loans under subtitle A;
and
``(II) $1,900,000,000 shall be for
operating loans under subtitle B.
``(B) Fiscal year 1997.--For fiscal year 1997,
$3,165,000,000, of which--
``(i) $585,000,000 shall be for direct
loans, of which--
``(I) $85,000,000 shall be for farm
ownership loans under subtitle A; and
``(II) $500,000,000 shall be for
operating loans under subtitle B; and
``(ii) $2,580,000,000 shall be for
guaranteed loans, of which--
``(I) $630,000,000 shall be for
farm ownership loans under subtitle A;
and
``(II) $1,950,000,000 shall be for
operating loans under subtitle B.
``(C) Fiscal year 1998.--For fiscal year 1998,
$3,245,000,000, of which--
``(i) $585,000,000 shall be for direct
loans, of which--
``(I) $85,000,000 shall be for farm
ownership loans under subtitle A; and
``(II) $500,000,000 shall be for
operating loans under subtitle B; and
``(ii) $2,660,000,000 shall be for
guaranteed loans, of which--
``(I) $660,000,000 shall be for
farm ownership loans under subtitle A;
and
``(II) $2,000,000,000 shall be for
operating loans under subtitle B.
``(D) Fiscal year 1999.--For fiscal year 1999,
$3,325,000,000, of which--
``(i) $585,000,000 shall be for direct
loans, of which--
``(I) $85,000,000 shall be for farm
ownership loans under subtitle A; and
``(II) $500,000,000 shall be for
operating loans under subtitle B; and
``(ii) $2,740,000,000 shall be for
guaranteed loans, of which--
``(I) $690,000,000 shall be for
farm ownership loans under subtitle A;
and
``(II) $2,050,000,000 shall be for
operating loans under subtitle B.
``(E) Fiscal year 2000.--For fiscal year 2000,
$3,435,000,000, of which--
``(i) $585,000,000 shall be for direct
loans, of which--
``(I) $85,000,000 shall be for farm
ownership loans under subtitle A; and
``(II) $500,000,000 shall be for
operating loans under subtitle B; and
``(ii) $2,850,000,000 shall be for
guaranteed loans, of which--
``(I) $750,000,000 shall be for
farm ownership loans under subtitle A;
and
``(II) $2,100,000,000 shall be for
operating loans under subtitle B.
``(F) Fiscal year 2001.--For fiscal year 2001,
$3,435,000,000, of which--
``(i) $585,000,000 shall be for direct
loans, of which--
``(I) $85,000,000 shall be for farm
ownership loans under subtitle A; and
``(II) $500,000,000 shall be for
operating loans under subtitle B; and
``(ii) $2,850,000,000 shall be for
guaranteed loans, of which--
``(I) $750,000,000 shall be for
farm ownership loans under subtitle A;
and
``(II) $2,100,000,000 shall be for
operating loans under subtitle B.
``(G) Fiscal year 2002.--For fiscal year 2002,
$3,435,000,000, of which--
``(i) $585,000,000 shall be for direct
loans, of which--
``(I) $85,000,000 shall be for farm
ownership loans under subtitle A; and
``(II) $500,000,000 shall be for
operating loans under subtitle B; and
``(ii) $2,850,000,000 shall be for
guaranteed loans, of which--
``(I) $750,000,000 shall be for
farm ownership loans under subtitle A;
and
``(II) $2,100,000,000 shall be for
operating loans under subtitle B.
``(2) Beginning farmers and ranchers.--
``(A) Direct loans.--
``(i) Farm ownership loans.--Of the amounts
made available under paragraph (1) for direct
farm ownership loans, the Secretary shall
reserve 70 percent of available funds for
qualified beginning farmers and ranchers.
``(ii) Operating loans.--Of the amounts
made available under paragraph (1) for direct
operating loans, the Secretary shall reserve
for qualified beginning farmers and ranchers--
``(I) for fiscal year 1996, 25
percent;
``(II) for fiscal year 1997, 25
percent;
``(III) for fiscal year 1998, 25
percent;
``(IV) for fiscal year 1999, 30
percent; and
``(V) for each of fiscal years 2000
through 2002, 35 percent.
``(iii) Funds reserved until september 1.--
Funds reserved for beginning farmers or
ranchers under this subparagraph shall be
reserved only until September 1 of each fiscal
year.
``(B) Guaranteed loans.--
``(i) Farm ownership loans.--Of the amounts
made available under paragraph (1) for
guaranteed farm ownership loans, the Secretary
shall reserve 25 percent for qualified
beginning farmers and ranchers.
``(ii) Operating loans.--Of the amounts
made available under paragraph (1) for
guaranteed operating loans, the Secretary shall
reserve 40 percent for qualified beginning
farmers and ranchers.
``(iii) Funds reserved until april 1.--
Funds reserved for beginning farmers or
ranchers under this subparagraph shall be
reserved only until April 1 of each fiscal
year.
``(C) Reserved funds for all qualified beginning
farmers and ranchers.--If a qualified beginning farmer
or rancher meets the eligibility criteria for receiving
a direct or guaranteed loan under section 302, 310E, or
311, the Secretary shall make or guarantee the loan if
sufficient funds reserved under this paragraph are
available to make or guarantee the loan.
``(3) Transfer for down payment loans.--
``(A) In general.--Notwithstanding subsection (a),
subject to subparagraph (B)--
``(i) beginning on August 1 of each fiscal
year, the Secretary shall use available
unsubsidized guaranteed farm operating loan
funds to fund approved direct farm ownership
loans to beginning farmers and ranchers under
the down payment loan program established under
section 310E; and
``(ii) beginning on September 1 of each
fiscal year, the Secretary shall use available
unsubsidized guaranteed farm operating loan
funds to fund approved direct farm ownership
loans to beginning farmers and ranchers.
``(B) Limitation.--The Secretary shall limit the
transfer of funds under subparagraph (A) so that all
guaranteed farm operating loans that have been
approved, or will be approved, during the fiscal year
shall be funded to extent of appropriated amounts.
``(4) Transfer for credit sales of farm inventory
property.--
``(A) In general.--Notwithstanding subsection (a),
subject to subparagraphs (B) and (C), beginning on
September 1 of each fiscal year, the Secretary may use
available emergency disaster loan funds appropriated
for the fiscal year to fund the credit sale of farm
real estate in the inventory of the Secretary.
``(B) Supplemental appropriations.--The transfer
authority provided under subparagraph (A) does not
include any emergency disaster loan funds made
available to the Secretary for any fiscal year as a
result of a supplemental appropriation made by
Congress.
``(C) Limitation.--The Secretary shall limit the
transfer of funds under subparagraph (A) so that all
emergency disaster loans that have been approved, or
will be approved, during the fiscal year shall be
funded to extent of appropriated amounts.''.
SEC. 636. LIST OF CERTIFIED LENDERS AND INVENTORY PROPERTY
DEMONSTRATION PROJECT.
(a) In General.--Section 351 of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1999) is amended--
(1) in subsection (f)--
(A) by striking ``Each Farmers Home Administration
county supervisor'' and inserting ``The Secretary'';
(B) by striking ``approved lenders'' and inserting
``lenders''; and
(C) by striking ``the Farmers Home
Administration''; and
(2) by striking subsection (h).
(b) Technical Amendments.--
(1) Section 1320 of the Food Security Act of 1985 (Public
Law 99-198; 7 U.S.C. 1999 note) is amended by striking
``Effective only'' and all that follows through ``1995, the''
and inserting ``The''.
(2) Section 351(a) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1999) is amended--
(A) by striking ``Sec. 351. (a) The'' and inserting
the following:
``SEC. 351. INTEREST RATE REDUCTION PROGRAM.
``(a) Establishment of Program.--
``(1) In general.--The''; and
(B) by adding at the end the following:
``(2) Termination of authority.--The authority provided by
this subsection shall terminate on September 30, 2002.''.
SEC. 637. HOMESTEAD PROPERTY.
Section 352(c) of the Consolidated Farm and Rural Development Act
(7 U.S.C. 2000(c)) is amended--
(1) in paragraph (1)(A), by striking ``90'' each place it
appears and inserting ``30''; and
(2) in paragraph (6), by striking ``Within 30'' and all
that follows through ``title,'' and insert ``Not later than the
date of acquisition of the property securing a loan made under
this title (or, in the case of real property in inventory on
the effective date of the Agricultural Reform and Improvement
Act of 1996, not later than 5 days after the date of enactment
of the Act),'' and by striking the second sentence.
SEC. 638. RESTRUCTURING.
Section 353 of the Consolidated Farm and Rural Development Act (7
U.S.C. 2001) is amended--
(1) in subsection (c)--
(A) in paragraph (3) by striking subparagraph (C)
and inserting the following:
``(C) Cash flow margin.--
``(i) Assumption.--For the purpose of
assessing under subparagraph (A) the ability of
a borrower to meet debt obligations and
continue farming operations, the Secretary
shall assume that the borrower needs up to 110
percent of the amount indicated for payment of
farm operating expenses, debt service
obligations, and family living expenses.
``(ii) Available income.--If an amount up
to 110 percent of the amount determined under
subparagraph (A) is available, the Secretary
shall consider the income of the borrower to be
adequate to meet all expenses, including the
debt obligations of the borrower.''; and
(B) by striking paragraph (6) and inserting the
following:
``(6) Termination of loan obligations.--The obligations of
a borrower to the Secretary under a loan shall terminate if--
``(A) the borrower satisfies the requirements of
paragraphs (1) and (2) of subsection (b);
``(B) the value of the restructured loan is less
than the recovery value; and
``(C) not later than 90 days after receipt of the
notification described in paragraph (4)(B), the
borrower pays (or obtains third-party financing to pay)
the Secretary an amount equal to the current market
value.'';
(2) by striking subsection (k); and
(3) by redesignating subsections (l) through (p) as
subsections (k) through (o), respectively.
SEC. 639. TRANSFER OF INVENTORY LANDS.
Section 354 of the Consolidated Farm and Rural Development Act (7
U.S.C. 2002) is amended--
(1) in the matter preceding paragraph (1), by striking
``The Secretary, without reimbursement,'' and inserting the
following:
``(a) In General.--Subject to subsection (b), the Secretary'';
(2) by striking paragraph (2) and inserting the following:
``(2) that is eligible to be disposed of in accordance with
section 335; and''; and
(3) by adding at the end the following:
``(b) Conditions.--The Secretary may not transfer any property or
interest under subsection (a) unless--
``(1) at least 2 public notices are given of the transfer;
``(2) if requested, at least 1 public meeting is held prior
to the transfer; and
``(3) the Governor and at least 1 elected county official
are consulted prior to the transfer.''.
SEC. 640. IMPLEMENTATION OF TARGET PARTICIPATION RATES.
Section 355 of the Consolidated Farm and Rural Development Act (7
U.S.C. 2003) is amended by adding at the end the following:
``(f) Implementation Consistent with Supreme Court Holding.--Not
later than 180 days after the date of enactment of this subsection, the
Secretary shall ensure that the implementation of this section is
consistent with the holding of the Supreme Court in Adarand
Constructors, Inc. v. Federico Pena, Secretary of Transportation, 63
U.S.L.W. 4523 (U.S. June 12, 1995).''.
SEC. 641. DELINQUENT BORROWERS AND CREDIT STUDY.
The Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et
seq.) is amended by adding at the end the following:
``SEC. 372. PAYMENT OF INTEREST AS A CONDITION OF LOAN SERVICING FOR
BORROWERS.
``The Secretary may not reschedule or reamortize a loan for a
borrower under this title who has not requested consideration under
section 331D(e) unless the borrower pays a portion, as determined by
the Secretary, of the interest due on the loan.
``SEC. 373. LOAN AND LOAN SERVICING LIMITATIONS
``(a) Delinquent Borrowers Prohibited from Obtaining Direct
Operating Loans.--The Secretary may not make a direct operating loan
under subtitle B to a borrower who is delinquent on any loan made or
guaranteed under this title.
``(b) Loans Prohibited for Borrowers that Have Received Debt
Forgiveness.--
``(1) In general.--Except as provided in paragraph (2), the
Secretary may not make or guarantee a loan under this title to
a borrower who received debt forgiveness under this title.
``(2) Exception.--The Secretary may make a direct or
guaranteed farm operating loan for paying annual farm or ranch
operating expenses to a borrower who was restructured with debt
write-down under section 353.
``(c) No More That 1 Debt Forgiveness For A Borrower On A Direct
Loan.--The Secretary may not provide debt forgiveness to a borrower on
a direct loan made under this title if the borrower has received debt
forgiveness on another direct loan under this title.
``SEC. 374. CREDIT STUDY.
``(a) In General.--The Secretary of Agriculture shall perform a
study and report to the Committee on Agriculture in the House of
Representatives and the Committee on Agriculture, Nutrition, and
Forestry in the Senate on the demand for and availability of credit in
rural areas for agriculture, rural housing, and rural development.
``(b) Purpose.--The purpose of the study is to ensure that Congress
has current and comprehensive information to consider as Congress
deliberates on the credit needs of rural America and the availability
of credit to satisfy the needs of rural America.
``(c) Items in Study.--The study should be based on the most
current available data and should include--
``(1) rural demand for credit from the Farm Credit System,
the ability of the Farm Credit System to meet the demand, and
the extent to which the Farm Credit System provided loans to
satisfy the demand;
``(2) rural demand for credit from the nation's banking
system, the ability of banks to meet the demand, and the extent
to which banks provided loans to satisfy the demand;
``(3) rural demand for credit from the Secretary, the
ability of the Secretary to meet the demand, and the extent to
which the Secretary provided loans to satisfy the demand;
``(4) rural demand for credit from other Federal agencies,
the ability of the agencies to meet the demand, and the extent
to which the agencies provided loans to satisfy the demand;
``(5) what measure or measures exist to gauge the overall
demand for rural credit and the extent to which rural demand
for credit is satisfied, and what the measures have shown;
``(6) a comparison of the interest rates and terms charged
by the Farm Credit System Farm Credit Banks, production credit
associations, and banks for cooperatives with the rates and
terms charged by the nation's banks for credit of comparable
risk and maturity;
``(7) the advantages and disadvantages of the modernization
and expansion proposals of the Farm Credit System on the Farm
Credit System, the nation's banking system, rural users of
credit, local rural communities, and the Federal Government,
including--
``(A) any added risk to the safety and soundness of
the Farm Credit System that may result from approval of
a proposal; and
``(B) any positive or adverse impacts on
competition between the Farm Credit System and the
nation's banks in providing credit to rural users;
``(8) the nature and extent of the unsatisfied rural credit
need that the Farm Credit System proposal are supposed to
address and what aspects of the present Farm Credit System
prevent the Farm Credit System from meeting the need;
``(9) the advantages and disadvantages of the proposal by
commercial bankers to allow banks access to the Farm Credit
System as a funding source on the Farm Credit System, the
nation's banking system, rural users of credit, local rural
communities, and the Federal Government, including--
``(A) any added risk to the safety and soundness of
the Farm Credit System that may result from approval of
the proposal; and
``(B) any positive or adverse impacts on
competition between the Farm Credit System and the
nation's banks in providing credit to rural users; and
``(10) problems that commercial banks have in obtaining
capital for lending in rural areas, how access to Farm Credit
System funds would improve the availability of capital in rural
areas in ways that cannot be achieved in the present system,
and the possible effects on the viability of the Farm Credit
System of granting banks access to Farm Credit System funds.
``(d) Interagency Task Force.--In completing the study, the
Secretary shall use, among other things, data and information obtained
by the interagency task force on rural credit.''.
CHAPTER 5--GENERAL PROVISIONS
SEC. 651. CONFORMING AMENDMENTS.
(a) Section 307(a) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1927(a)) is amended--
(1) in paragraph (4), by striking ``304(b), 306(a)(1), and
310B'' and inserting ``306(a)(1) and 310B''; and
(2) in paragraph (6)(B)--
(A) by striking clauses (i), (ii), and (vii);
(B) in clause (v), by adding ``and'' at the end;
(C) in clause (vi), by striking ``, and'' at the
end and inserting a period; and
(D) by redesignating clauses (iii) through (vi) as
clauses (i) through (iv), respectively.
(b) The second sentence of section 309(g)(1) of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1929(g)(1)) is amended by
striking ``section 308,''.
(c) Section 309A of the Consolidated Farm and Rural Development Act
(7 U.S.C. 1929a) is amended--
(1) in the second sentence of subsection (a), by striking
``304(b), 306(a)(1), 306(a)(14), 310B, and 312(b)'' and
inserting ``306(a)(1), 306(a)(14), and 310B''; and
(2) in subsection (b), by striking ``and section 308''.
(d) Section 310B(d) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1932(d)) is amended--
(1) by striking ``sections 304(b), 310B, and 312(b)'' each
place it appears in paragraphs (2), (3), and (4) and inserting
``this section''; and
(2) in paragraph (6), by striking ``this section, section
304, or section 312'' and inserting ``this section''.
(e) The first sentence of section 310D(a) of the Consolidated Farm
and Rural Development Act (7 U.S.C. 1934(a)) is amended by striking
``paragraphs (1) through (5) of section 303(a), or subparagraphs (A)
through (E) of section 304(a)(1)'' and inserting ``section 303(a), or
paragraphs (1) through (5) of section 304(b)''.
(f) Section 311(b)(1) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1941(b)(1)) is amended by striking ``and for
the purposes specified in section 312''.
(g) Section 316(a) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1946(a)) is amended by striking paragraph (3).
(h) Section 343 of the Consolidated Farm and Rural Development Act
(7 U.S.C. 1991) is amended--
(1) in subsection (a)(10), by striking ``recreation loan
(RL) under section 304,''; and
(2) in subsection (b)--
(A) in the matter preceding paragraph (1), by
striking ``351(h),''; and
(B) by striking paragraph (4) and inserting the
following:
``(4) Preservation loan service program.--The term
``preservation loan service program'' means homestead retention
as authorized under section 352.''.
(i) The first sentence of section 344 of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1992) is amended by striking ``304(b),
306(a)(1), 310B, 312(b), or 312(c)'' and inserting ``306(a)(1), 310B,
or 312(c)''.
(j) Section 353(l) of the Consolidated Farm and Rural Development
Act (as redesignated by section 638(3)) is further amended by striking
``and subparagraphs (A)(i) and (C)(i) of section 335(e)(1),''.
Subtitle B--Farm Credit System
CHAPTER 1--AGRICULTURAL MORTGAGE SECONDARY MARKET
SEC. 661. DEFINITION OF REAL ESTATE.
Section 8.0(1)(B)(ii) of the Farm Credit Act of 1971 (12 U.S.C.
2279aa(1)(B)(ii)) is amended by striking ``with a purchase price'' and
inserting ``, excluding the land to which the dwelling is affixed, with
a value''.
SEC. 662. DEFINITION OF CERTIFIED FACILITY.
Section 8.0(3) of the Farm Credit Act of 1971 (12 U.S.C. 2279aa(3))
is amended--
(1) in subparagraph (A), by striking ``a secondary
marketing agricultural loan'' and inserting ``an agricultural
mortgage marketing''; and
(2) in subparagraph (B), by striking ``, but only'' and all
that follows through ``(9)(B)''.
SEC. 663. DUTIES OF FEDERAL AGRICULTURAL MORTGAGE CORPORATION.
Section 8.1(b) of the Farm Credit Act of 1971 (12 U.S.C. 2279aa-
1(b)) is amended--
(1) in paragraph (2), by striking ``and'' at the end;
(2) in paragraph (3), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(4) purchase qualified loans and issue securities
representing interests in, or obligations backed by, the
qualified loans, guaranteed for the timely repayment of
principal and interest.''.
SEC. 664. POWERS OF THE CORPORATION.
Section 8.3(c) of the Farm Credit Act of 1971 (12 U.S.C. 2279aa-
3(c)) is amended--
(1) by redesignating paragraphs (13) and (14) as paragraphs
(14) and (15), respectively; and
(2) by inserting after paragraph (12) the following:
``(13) To purchase, hold, sell, or assign a qualified loan,
to issue a guaranteed security, representing an interest in, or
an obligation backed by, the qualified loan, and to perform all
the functions and responsibilities of an agricultural mortgage
marketing facility operating as a certified facility under this
title.''.
SEC. 665. FEDERAL RESERVE BANKS AS DEPOSITARIES AND FISCAL AGENTS.
Section 8.3 of the Farm Credit Act of 1971 (12 U.S.C. 2279aa-3) is
amended--
(1) in subsection (d), by striking ``may act as
depositories for, or'' and inserting ``shall act as
depositories for, and''; and
(2) in subsection (e), by striking ``Secretary of the
Treasury may authorize the Corporation to use'' and inserting
``Corporation shall have access to''.
SEC. 666. CERTIFICATION OF AGRICULTURAL MORTGAGE MARKETING FACILITIES.
Section 8.5 of the Farm Credit Act of 1971 (12 U.S.C. 2279aa-5) is
amended--
(1) in subsection (a)--
(A) in paragraph (1), by inserting ``(other than
the Corporation)'' after ``agricultural mortgage
marketing facilities''; and
(B) in paragraph (2), by inserting ``(other than
the Corporation)'' after ``agricultural mortgage
marketing facility''; and
(2) in subsection (e)(1), by striking ``(other than the
Corporation)''.
SEC. 667. GUARANTEE OF QUALIFIED LOANS.
Section 8.6 of the Farm Credit Act of 1971 (12 U.S.C. 2279aa-6) is
amended--
(1) in subsection (a)(1)--
(A) by striking ``Corporation shall guarantee'' and
inserting the following: ``Corporation--
``(A) shall guarantee'';
(B) by striking the period at the end and inserting
``; and''; and
(C) by adding at the end the following:
``(B) may issue a security, guaranteed as to the
timely payment of principal and interest, that
represents an interest solely in, or an obligation
fully backed by, a pool consisting of qualified loans
that--
``(i) meet the standards established under
section 8.8; and
``(ii) have been purchased and held by the
Corporation.'';
(2) in subsection (d)--
(A) by striking paragraph (4); and
(B) by redesignating paragraphs (5), (6), and (7)
as paragraphs (4), (5), and (6), respectively; and
(3) in subsection (g)(2), by striking ``section
8.0(9)(B))'' and inserting ``section 8.0(9))''.
SEC. 668. MANDATORY RESERVES AND SUBORDINATED PARTICIPATION INTERESTS
ELIMINATED.
(a) Guarantee of Qualified Loans.--Section 8.6 of the Farm Credit
Act of 1971 (12 U.S.C. 2279aa-6) is amended by striking subsection (b).
(b) Reserves and Subordinated Participation Interests.--Section 8.7
of the Farm Credit Act of 1971 (12 U.S.C. 2279aa-7) is repealed.
(c) Conforming Amendments.--
(1) Section 8.0(9)(B)(i) of the Farm Credit Act of 1971 (12
U.S.C. 2279aa(9)(B)(i)) is amended by striking ``8.7, 8.8,''
and inserting ``8.8''.
(2) Section 8.6(a)(2) of the Farm Credit Act of 1971 (12
U.S.C. 2279aa-6(a)(2)) is amended by striking ``subject to the
provisions of subsection (b)''.
SEC. 669. STANDARDS REQUIRING DIVERSIFIED POOLS.
(a) In General.--Section 8.6 of the Farm Credit Act of 1971 (12
U.S.C. 2279aa-6) (as amended by section 668) is amended--
(1) by striking subsection (c); and
(2) by redesignating subsections (d) through (g) as
subsections (b) through (e), respectively.
(b) Conforming Amendments.--
(1) Section 8.0(9)(B)(i) of the Farm Credit Act of 1971 (12
U.S.C. 2279aa(9)(B)(i)) is amended by striking ``(f)'' and
inserting ``(d)''.
(2) Section 8.13(a) of the Farm Credit Act of 1971 (12
U.S.C. 2279aa-13(a)) is amended by striking ``sections 8.6(b)
and'' in each place it appears and inserting ``section''.
(3) Section 8.32(b)(1)(C) of the Farm Credit Act of 1971
(12 U.S.C. 2279bb-1(b)(1)(C)) is amended--
(A) by striking ``shall'' and inserting ``may'';
and
(B) by inserting ``(as in effect before the date of
the enactment of the Agricultural Reform and
Improvement Act of 1996)'' before the semicolon.
(4) Section 8.6(b) of the Farm Credit Act of 1971 (12
U.S.C. 2279aa-6(b)) (as redesignated by subsection (a)(2)) is
amended--
(A) by striking paragraph (4) (as redesignated by
section 667(2)(B)); and
(B) by redesignating paragraphs (5) and (6) (as
redesignated by section 667(2)(B)) as paragraphs (4)
and (5), respectively.
SEC. 670. SMALL FARMS.
Section 8.8(e) of the Farm Credit Act of 1971 (12 U.S.C. 2279aa-
8(e)) is amended by adding at the end the following: ``The Board shall
promote and encourage the inclusion of qualified loans for small farms
and family farmers in the agricultural mortgage secondary market.''.
SEC. 671. DEFINITION OF AN AFFILIATE.
Section 8.11(e) of the Farm Credit Act of 1971 (21 U.S.C. 2279aa-
11(e)) is amended--
(1) by striking ``a certified facility or''; and
(2) by striking ``paragraphs (3) and (7), respectively, of
section 8.0'' and inserting ``section 8.0(7)''.
SEC. 672. STATE USURY LAWS SUPERSEDED.
Section 8.12 of the Farm Credit Act of 1971 (12 U.S.C. 2279aa-12)
is amended by striking subsection (d) and inserting the following:
``(d) State Usury Laws Superseded.--A provision of the Constitution
or law of any State shall not apply to an agricultural loan made by an
originator or a certified facility in accordance with this title for
sale to the Corporation or to a certified facility for inclusion in a
pool for which the Corporation has provided, or has committed to
provide, a guarantee, if the loan, not later than 180 days after the
date the loan was made, is sold to the Corporation or included in a
pool for which the Corporation has provided a guarantee, if the
provision--
``(1) limits the rate or amount of interest, discount
points, finance charges, or other charges that may be charged,
taken, received, or reserved by an agricultural lender or a
certified facility; or
``(2) limits or prohibits a prepayment penalty (either
fixed or declining), yield maintenance, or make-whole payment
that may be charged, taken, or received by an agricultural
lender or a certified facility in connection with the full or
partial payment of the principal amount due on a loan by a
borrower in advance of the scheduled date for the payment under
the terms of the loan, otherwise known as a prepayment of the
loan principal.''.
SEC. 673. EXTENSION OF CAPITAL TRANSITION PERIOD.
Section 8.32 of the Farm Credit Act of 1971 (12 U.S.C. 2279bb-1) is
amended--
(1) in the first sentence of subsection (a), by striking
``Not later than the expiration of the 2-year period beginning
on December 13, 1991,'' and inserting ``Not sooner than the
expiration of the 3-year period beginning on the date of
enactment of the Agricultural Reform and Improvement Act of
1996,'';
(2) in the first sentence of subsection (b)(2), by striking
``5-year'' and inserting ``8-year''; and
(3) in subsection (d)--
(A) in the first sentence--
(i) by striking ``The regulations
establishing'' and inserting the following:
``(1) In general.--The regulations establishing''; and
(ii) by striking ``shall contain'' and
inserting the following: ``shall--
``(A) be issued by the Director for public comment
in the form of a notice of proposed rulemaking, to be
first published after the expiration of the period
referred to in subsection (a); and
``(B) contain''; and
(B) in the second sentence, by striking ``The
regulations shall'' and inserting the following:
``(2) Specificity.--The regulations referred to in
paragraph (1) shall''.
SEC. 674. MINIMUM CAPITAL LEVEL.
Section 8.33 of the Farm Credit Act of 1971 (12 U.S.C. 2279bb-2) is
amended to read as follows:
``SEC. 8.33. MINIMUM CAPITAL LEVEL.
``(a) In General.--Except as provided in subsection (b), for
purposes of this subtitle, the minimum capital level for the
Corporation shall be an amount of core capital equal to the sum of--
``(1) 2.75 percent of the aggregate on-balance sheet assets
of the Corporation, as determined in accordance with generally
accepted accounting principles; and
``(2) 0.75 percent of the aggregate off-balance sheet
obligations of the Corporation, which, for the purposes of this
subtitle, shall include--
``(A) the unpaid principal balance of outstanding
securities that are guaranteed by the Corporation and
backed by pools of qualified loans;
``(B) instruments that are issued or guaranteed by
the Corporation and are substantially equivalent to
instruments described in subparagraph (A); and
``(C) other off-balance sheet obligations of the
Corporation.
``(b) Transition Period.--
``(1) In general.--For purposes of this subtitle, the
minimum capital level for the Corporation--
``(A) prior to January 1, 1997, shall be the amount
of core capital equal to the sum of--
``(i) 0.45 percent of aggregate off-balance
sheet obligations of the Corporation;
``(ii) 0.45 percent of designated on-
balance sheet assets of the Corporation, as
determined under paragraph (2); and
``(iii) 2.50 percent of on-balance sheet
assets of the Corporation other than assets
designated under paragraph (2);
``(B) during the 1-year period ending December 31,
1997, shall be the amount of core capital equal to the
sum of--
``(i) 0.55 percent of aggregate off-balance
sheet obligations of the Corporation;
``(ii) 1.20 percent of designated on-
balance sheet assets of the Corporation, as
determined under paragraph (2); and
``(iii) 2.55 percent of on-balance sheet
assets of the Corporation other than assets
designated under paragraph (2);
``(C) during the 1-year period ending December 31,
1998, shall be the amount of core capital equal to--
``(i) if the Corporation's core capital is
not less than $25,000,000 on January 1, 1998,
the sum of--
``(I) 0.65 percent of aggregate
off-balance sheet obligations of the
Corporation;
``(II) 1.95 percent of designated
on-balance sheet assets of the
Corporation, as determined under
paragraph (2); and
``(III) 2.65 percent of on-balance
sheet assets of the Corporation other
than assets designated under paragraph
(2); or
``(ii) if the Corporation's core capital is
less than $25,000,000 on January 1, 1998, the
amount determined under subsection (a); and
``(D) on and after January 1, 1999, shall be the
amount determined under subsection (a).
``(2) Designated on-balance sheet assets.--For purposes of
this subsection, the designated on-balance sheet assets of the
Corporation shall be--
``(A) the aggregate on-balance sheet assets of the
Corporation acquired under section 8.6(e); and
``(B) the aggregate amount of qualified loans
purchased and held by the Corporation under section
8.3(c)(13).''.
SEC. 675. CRITICAL CAPITAL LEVEL.
Section 8.34 of the Farm Credit Act of 1971 (12 U.S.C. 2279bb-3) is
amended to read as follows:
``SEC. 8.34. CRITICAL CAPITAL LEVEL.
``For purposes of this subtitle, the critical capital level for the
Corporation shall be an amount of core capital equal to 50 percent of
the total minimum capital amount determined under section 8.33.''.
SEC. 676. ENFORCEMENT LEVELS.
Section 8.35(e) of the Farm Credit Act of 1971 (12 U.S.C. 2279bb-
4(e)) is amended by striking ``during the 30-month period beginning on
the date of the enactment of this section,'' and inserting ``during the
period beginning on December 13, 1991, and ending on the effective date
of the risk based capital regulation issued by the Director under
section 8.32,''.
SEC. 677. RECAPITALIZATION OF THE CORPORATION.
Title VIII of the Farm Credit Act of 1971 (12 U.S.C. 2279aa et
seq.) is amended by adding at the end the following:
``SEC. 8.38. RECAPITALIZATION OF THE CORPORATION.
``(a) Mandatory Recapitalization.--The Corporation shall increase
the core capital of the Corporation to an amount equal to or greater
than $25,000,000, not later than the earlier of--
``(1) the date that is 2 years after the date of enactment
of this section; or
``(2) the date that is 180 days after the end of the first
calendar quarter that the aggregate on-balance sheet assets of
the Corporation, plus the outstanding principal of the off-
balance sheet obligations of the Corporation, equal or exceed
$2,000,000,000.
``(b) Raising Core Capital.--In carrying out this section, the
Corporation may issue stock under section 8.4 and otherwise employ any
recognized and legitimate means of raising core capital in the power of
the Corporation under section 8.3.
``(c) Limitation on Growth of Total Assets.--During the 2-year
period beginning on the date of enactment of this section, the
aggregate on-balance sheet assets of the Corporation plus the
outstanding principal of the off-balance sheet obligations of the
Corporation may not exceed $3,000,000,000 if the core capital of the
Corporation is less than $25,000,000.
``(d) Enforcement.--If the Corporation fails to carry out
subsection (a) by the date required under paragraph (1) or (2) of
subsection (a), the Corporation may not purchase a new qualified loan
or issue or guarantee a new loan-backed security until the core capital
of the Corporation is increased to an amount equal to or greater than
$25,000,000.''.
SEC. 678. LIQUIDATION OF THE FEDERAL AGRICULTURAL MORTGAGE CORPORATION.
Title VIII of the Farm Credit Act of 1971 (12 U.S.C. 2279aa et
seq.) (as amended by section 677) is amended by adding at the end the
following:
``Subtitle C--Receivership, Con- servatorship, and Liquidation of the
Federal Agricultural Mortgage Corporation
``SEC. 8.41. CONSERVATORSHIP; LIQUIDATION; RECEIVERSHIP.
``(a) Voluntary Liquidation.--The Corporation may voluntarily
liquidate only with the consent of, and in accordance with a plan of
liquidation approved by, the Farm Credit Administration Board.
``(b) Involuntary Liquidation.--
``(1) In general.--The Farm Credit Administration Board may
appoint a conservator or receiver for the Corporation under the
circumstances specified in section 4.12(b).
``(2) Application.--In applying section 4.12(b) to the
Corporation under paragraph (1)--
``(A) the Corporation shall also be considered
insolvent if the Corporation is unable to pay its debts
as they fall due in the ordinary course of business;
``(B) a conservator may also be appointed for the
Corporation if the authority of the Corporation to
purchase qualified loans or issue or guarantee loan-
backed securities is suspended; and
``(C) a receiver may also be appointed for the
Corporation if--
``(i)(I) the authority of the Corporation
to purchase qualified loans or issue or
guarantee loan-backed securities is suspended;
or
``(II) the Corporation is classified under
section 8.35 as within level III or IV and the
alternative actions available under subtitle B
are not satisfactory; and
``(ii) the Farm Credit Administration
determines that the appointment of a
conservator would not be appropriate.
``(3) No effect on supervisory actions.--The grounds for
appointment of a conservator for the Corporation under this
subsection shall be in addition to those in section 8.37.
``(c) Appointment of Conservator or Receiver.--
``(1) Qualifications.--Notwithstanding section 4.12(b), if
a conservator or receiver is appointed for the Corporation, the
conservator or receiver shall be--
``(A) the Farm Credit Administration or any other
governmental entity or employee, including the Farm
Credit System Insurance Corporation; or
``(B) any person that--
``(i) has no claim against, or financial
interest in, the Corporation or other basis for
a conflict of interest as the conservator or
receiver; and
``(ii) has the financial and management
expertise necessary to direct the operations
and affairs of the Corporation and, if
necessary, to liquidate the Corporation.
``(2) Compensation.--
``(A) In general.--A conservator or receiver for
the Corporation and professional personnel (other than
a Federal employee) employed to represent or assist the
conservator or receiver may be compensated for
activities conducted as, or for, a conservator or
receiver.
``(B) Limit on compensation.--Compensation may not
be provided in amounts greater than the compensation
paid to employees of the Federal Government for similar
services, except that the Farm Credit Administration
may provide for compensation at higher rates that are
not in excess of rates prevailing in the private sector
if the Farm Credit Administration determines that
compensation at higher rates is necessary in order to
recruit and retain competent personnel.
``(C) Contractual arrangements.--The conservator or
receiver may contract with any governmental entity,
including the Farm Credit System Insurance Corporation,
to make personnel, services, and facilities of the
entity available to the conservator or receiver on such
terms and compensation arrangements as shall be
mutually agreed, and each entity may provide the same
to the conservator or receiver.
``(3) Expenses.--A valid claim for expenses of the
conservatorship or receivership (including compensation under
paragraph (2)) and a valid claim with respect to a loan made
under subsection (f) shall--
``(A) be paid by the conservator or receiver from
funds of the Corporation before any other valid claim
against the Corporation; and
``(B) may be secured by a lien, on such property of
the Corporation as the conservator or receiver may
determine, that shall have priority over any other
lien.
``(4) Liability.--If the conservator or receiver for the
Corporation is not a Federal entity, or an officer or employee
of the Federal Government, the conservator or receiver shall
not be personally liable for damages in tort or otherwise for
an act or omission performed pursuant to and in the course of
the conservatorship or receivership, unless the act or omission
constitutes gross negligence or any form of intentional
tortious conduct or criminal conduct.
``(5) Indemnification.--The Farm Credit Administration may
allow indemnification of the conservator or receiver from the
assets of the conservatorship or receivership on such terms as
the Farm Credit Administration considers appropriate.
``(d) Judicial Review of Appointment.--
``(1) In general.--Notwithstanding subsection (i)(1), not
later than 30 days after a conservator or receiver is appointed
under subsection (b), the Corporation may bring an action in
the United States District Court for the District of Columbia
for an order requiring the Farm Credit Administration Board to
remove the conservator or receiver. The court shall, on the
merits, dismiss the action or direct the Farm Credit
Administration Board to remove the conservator or receiver.
``(2) Stay of other actions.--On the commencement of an
action under paragraph (1), any court having jurisdiction of
any other action or enforcement proceeding authorized under
this Act to which the Corporation is a party shall stay the
action or proceeding during the pendency of the action for
removal of the conservator or receiver.
``(e) General Powers of Conservator or Receiver.--The conservator
or receiver for the Corporation shall have such powers to conduct the
conservatorship or receivership as shall be provided pursuant to
regulations adopted by the Farm Credit Administration Board. Such
powers shall be comparable to the powers available to a conservator or
receiver appointed pursuant to section 4.12(b).
``(f) Borrowings for Working Capital.--
``(1) In general.--If the conservator or receiver of the
Corporation determines that it is likely that there will be
insufficient funds to pay the ongoing administrative expenses
of the conservatorship or receivership or that there will be
insufficient liquidity to fund maturing obligations of the
conservatorship or receivership, the conservator or receiver
may borrow funds in such amounts, from such sources, and at
such rates of interest as the conservator or receiver considers
necessary or appropriate to meet the administrative expenses or
liquidity needs of the conservatorship or receivership.
``(2) Working capital from farm credit banks.--A Farm
Credit bank may loan funds to the conservator or receiver for a
loan authorized under paragraph (1) or, in the event of
receivership, a Farm Credit bank may purchase assets of the
Corporation.
``(g) Agreements Against Interests of Conservator or Receiver.--No
agreement that tends to diminish or defeat the right, title, or
interest of the conservator or receiver for the Corporation in any
asset acquired by the conservator or receiver as conservator or
receiver for the Corporation shall be valid against the conservator or
receiver unless the agreement--
``(1) is in writing;
``(2) is executed by the Corporation and any person
claiming an adverse interest under the agreement, including the
obligor, contemporaneously with the acquisition of the asset by
the Corporation;
``(3) is approved by the Board or an appropriate committee
of the Board, which approval shall be reflected in the minutes
of the Board or committee; and
``(4) has been, continuously, from the time of the
agreement's execution, an official record of the Corporation.
``(h) Report to the Congress.--On a determination by the receiver
for the Corporation that there are insufficient assets of the
receivership to pay all valid claims against the receivership, the
receiver shall submit to the Secretary of the Treasury, the Committee
on Agriculture of the House of Representatives, and the Committee on
Agriculture, Nutrition, and Forestry of the Senate a report on the
financial condition of the receivership.
``(i) Termination of Authorities.--
``(1) Corporation.--The charter of the Corporation shall be
canceled, and the authority provided to the Corporation by this
title shall terminate, on such date as the Farm Credit
Administration Board determines is appropriate following the
placement of the Corporation in receivership, but not later
than the conclusion of the receivership and discharge of the
receiver.
``(2) Oversight.--The Office of Secondary Market Oversight
established under section 8.11 shall be abolished, and section
8.11(a) and subtitle B shall have no force or effect, on such
date as the Farm Credit Administration Board determines is
appropriate following the placement of the Corporation in
receivership, but not later than the conclusion of the
receivership and discharge of the receiver.''.
CHAPTER 2--REGULATORY RELIEF
SEC. 681. COMPENSATION OF ASSOCIATION PERSONNEL.
Section 1.5(13) of the Farm Credit Act of 1971 (12 U.S.C. 2013(13))
is amended by striking ``, and the appointment and compensation of the
chief executive officer thereof,''.
SEC. 682. USE OF PRIVATE MORTGAGE INSURANCE.
(a) In General.--Section 1.10(a)(1) of the Farm Credit Act of 1971
(12 U.S.C. 2018(a)(1)) is amended by adding at the end the following:
``(D) Private mortgage insurance.--A loan on which
private mortgage insurance is obtained may exceed 85
percent of the appraised value of the real estate
security to the extent that the loan amount in excess
of such 85 percent is covered by the insurance.''.
(b) Conforming Amendment.--Section 1.10(a)(1)(A) of the Farm Credit
Act of 1971 (12 U.S.C. 2018(a)(1)(A)) is amended by striking
``paragraphs (2) and (3)'' and inserting ``subparagraphs (C) and (D)''.
SEC. 683. REMOVAL OF CERTAIN BORROWER REPORTING REQUIREMENT.
Section 1.10(a) of the Farm Credit Act of 1971 (12 U.S.C. 2018(a))
is amended by striking paragraph (5).
SEC. 684. REFORM OF REGULATORY LIMITATIONS ON DIVIDEND, MEMBER
BUSINESS, AND VOTING PRACTICES OF ELIGIBLE FARMER-OWNED
COOPERATIVES.
(a) In General.--Section 3.8(a) of the Farm Credit Act of 1971 (12
U.S.C. 2129(a)) is amended by adding at the end the following: ``Any
such association that has received a loan from a bank for cooperatives
shall, without regard to the requirements of paragraphs (1) through
(4), continue to be eligible for so long as more than 50 percent (or
such higher percentage as is established by the bank board) of the
voting control of the association is held by farmers, producers or
harvesters of aquatic products, or eligible cooperative
associations.''.
(b) Conforming Amendment.--Section 3.8(b)(1)(D) of the Farm Credit
Act of 1971 (12 U.S.C. 2129(b)(1)(D)) is amended by striking ``and (4)
of subsection (a)'' and inserting ``and (4), or under the last
sentence, of subsection (a)''.
SEC. 685. REMOVAL OF FEDERAL GOVERNMENT CERTIFICATION REQUIREMENT FOR
CERTAIN PRIVATE SECTOR FINANCINGS.
Section 3.8(b)(1)(A) of the Farm Credit Act of 1971 (12 U.S.C.
2129(b)(1)(A)) is amended--
(1) by striking ``have been certified by the Administrator
of the Rural Electrification Administration to be eligible for
such'' and inserting ``are eligible under the Rural
Electrification Act of 1936 (7 U.S.C. 901 et seq.) for''; and
(2) by striking ``loan guarantee, and'' and inserting
``loan guarantee from the Administration or the Bank (or a
successor of the Administration or the Bank), and''.
SEC. 686. BORROWER STOCK.
Section 4.3A of the Farm Credit Act of 1971 (12 U.S.C. 2154a) is
amended--
(1) by redesignating subsections (f) and (g) as subsections
(g) and (h), respectively; and
(2) by inserting after subsection (e) the following:
``(f) Loans Designated for Sale or Sold Into the Secondary
Market.--
``(1) In general.--Subject to paragraph (2) and
notwithstanding any other provision of this section, the bylaws
adopted by a bank or association under subsection (b) may
provide--
``(A) in the case of a loan made on or after the
date of enactment of this paragraph that is designated,
at the time the loan is made, for sale into a secondary
market, that no voting stock or participation
certificate purchase requirement shall apply to the
borrower for the loan; and
``(B) in the case of a loan made before the date of
enactment of this paragraph that is sold into a
secondary market, that all outstanding voting stock or
participation certificates held by the borrower with
respect to the loan shall, subject to subsection
(d)(1), be retired.
``(2) Applicability.--Notwithstanding any other provision
of this section, in the case of a loan sold to a secondary
market under title VIII, paragraph (1) shall apply regardless
of whether the bank or association retains a subordinated
participation interest in a loan or pool of loans or
contributes to a cash reserve.
``(3) Exception.--
``(A) In general.--Subject to subparagraph (B) and
notwithstanding any other provision of this section, if
a loan designated for sale under paragraph (1)(A) is
not sold into a secondary market during the 180-day
period that begins on the date of the designation, the
voting stock or participation certificate purchase
requirement that would otherwise apply to the loan in
the absence of a bylaw provision described in paragraph
(1)(A) shall be effective.
``(B) Retirement.--The bylaws adopted by a bank or
association under subsection (b) may provide that if a
loan described in subparagraph (A) is sold into a
secondary market after the end of the 180-day period
described in the subparagraph, all outstanding voting
stock or participation certificates held by the
borrower with respect to the loan shall, subject to
subsection (d)(1), be retired.''.
SEC. 687. DISCLOSURE RELATING TO ADJUSTABLE RATE LOANS.
Section 4.13(a)(4) of the Farm Credit Act of 1971 (12 U.S.C.
2199(a)(4)) is amended by inserting before the semicolon at the end the
following: ``, and notice to the borrower of a change in the interest
rate applicable to the loan of the borrower may be made within a
reasonable time after the effective date of an increase or decrease in
the interest rate''.
SEC. 688. BORROWERS' RIGHTS.
(a) Definition of Loan.--Section 4.14A(a)(5) of the Farm Credit Act
of 1971 (12 U.S.C. 2202a(a)(5)) is amended--
(1) by striking ``(5) Loan.--The'' and inserting the
following:
``(5) Loan.--
``(A) In general.--Subject to subparagraph (B),
the''; and
(2) by adding at the end the following:
``(B) Exclusion for loans designated for sale into
secondary market.--
``(i) In general.--Except as provided in
clause (ii), the term `loan' does not include a
loan made on or after the date of enactment of
this subparagraph that is designated, at the
time the loan is made, for sale into a
secondary market.
``(ii) Unsold loans.--
``(I) In general.--Except as
provided in subclause (II), if a loan
designated for sale under clause (i) is
not sold into a secondary market during
the 180-day period that begins on the
date of the designation, the provisions
of this section and sections 4.14,
4.14B, 4.14C, 4.14D, and 4.36 that
would otherwise apply to the loan in
the absence of the exclusion described
in clause (i) shall become effective
with respect to the loan.
``(II) Later sale.--If a loan
described in subclause (I) is sold into
a secondary market after the end of the
180-day period described in subclause
(I), subclause (I) shall not apply with
respect to the loan beginning on the
date of the sale.''.
(b) Borrowers' Rights for Pooled Loans.--The first sentence of
section 8.9(b) of the Farm Credit Act of 1971 (12 U.S.C. 2279aa-9(b))
is amended by inserting ``(as defined in section 4.14A(a)(5))'' after
``application for a loan''.
SEC. 689. FORMATION OF ADMINISTRATIVE SERVICE ENTITIES.
Part E of title IV of the Farm Credit Act of 1971 is amended by
inserting after section 4.28 (12 U.S.C. 2214) the following:
``SEC. 4.28A. DEFINITION OF BANK.
``In this part, the term `bank' includes each association operating
under title II.''.
SEC. 690. JOINT MANAGEMENT AGREEMENTS.
The first sentence of section 5.17(a)(2)(A) of the Farm Credit Act
of 1971 (12 U.S.C. 2252(a)(2)(A)) is amended by striking ``or
management agreements''.
SEC. 691. DISSEMINATION OF QUARTERLY REPORTS.
Section 5.17(a)(8) of the Farm Credit Act of 1971 (12 U.S.C.
2252(a)(8)) is amended by inserting after ``except that'' the
following: ``the requirements of the Farm Credit Administration
governing the dissemination to stockholders of quarterly reports of
System institutions may not be more burdensome or costly than the
requirements applicable to national banks, and''.
SEC. 692. REGULATORY REVIEW.
(a) Findings.--Congress finds that--
(1) the Farm Credit Administration, in the role of the
Administration as an arms-length safety and soundness
regulator, has made considerable progress in reducing the
regulatory burden on Farm Credit System institutions;
(2) the efforts of the Farm Credit Administration described
in paragraph (1) have resulted in cost savings for Farm Credit
System institutions; and
(3) the cost savings described in paragraph (2) ultimately
benefit the farmers, ranchers, agricultural cooperatives, and
rural residents of the United States.
(b) Continuation of Regulatory Review.--The Farm Credit
Administration shall continue the comprehensive review of regulations
governing the Farm Credit System to identify and eliminate, consistent
with law, safety, and soundness, all regulations that are unnecessary,
unduly burdensome or costly, or not based on law.
SEC. 693. EXAMINATION OF FARM CREDIT SYSTEM INSTITUTIONS.
The first sentence of section 5.19(a) of the Farm Credit Act of
1971 (12 U.S.C. 2254(a)) is amended by striking ``each year'' and
inserting ``during each 18-month period''.
SEC. 694. CONSERVATORSHIPS AND RECEIVERSHIPS.
(a) Definitions.--Section 5.51 of the Farm Credit Act of 1971 (12
U.S.C. 2277a) is amended--
(1) by striking paragraph (5); and
(2) by redesignating paragraph (6) as paragraph (5).
(b) General Corporate Powers.--Section 5.58 of the Farm Credit Act
of 1971 (12 U.S.C. 2277a-7) is amended by striking paragraph (9) and
inserting the following:
``(9) Conservator or receiver.--The Corporation may act as
a conservator or receiver.''.
SEC. 695. FARM CREDIT INSURANCE FUND OPERATIONS.
(a) Adjustment of Premiums.--
(1) In general.--Section 5.55(a) of the Farm Credit Act of
1971 (12 U.S.C. 2277a-4(a)) is amended--
(A) in paragraph (1), by striking ``Until the
aggregate of amounts in the Farm Credit Insurance Fund
exceeds the secure base amount, the annual premium due
from any insured System bank for any calendar year''
and inserting the following: ``If at the end of any
calendar year the aggregate of amounts in the Farm
Credit Insurance Fund does not exceed the secure base
amount, subject to paragraph (2), the annual premium
due from any insured System bank for the calendar
year'';
(B) by redesignating paragraph (2) as paragraph
(3); and
(C) by inserting after paragraph (1) the following:
``(2) Reduced premiums.--The Corporation, in the sole
discretion of the Corporation, may reduce by a percentage
uniformly applied to all insured System banks the annual
premium due from each insured System bank during any calendar
year, as determined under paragraph (1).''.
(2) Conforming amendments.--
(A) Section 5.55(b) of the Farm Credit Act of 1971
(12 U.S.C. 2277a-4(b)) is amended--
(i) by striking ``Insurance Fund'' each
place it appears and inserting ``Farm Credit
Insurance Fund'';
(ii) by striking ``for the following
calendar year''; and
(iii) by striking ``subsection (a)'' and
inserting ``subsection (a)(1)''.
(B) Section 5.56(a) of the Farm Credit Act of 1971
(12 U.S.C. 2277a-5(a)) is amended by striking ``section
5.55(a)(2)'' each place it appears in paragraphs (2)
and (3) and inserting ``section 5.55(a)(3)''.
(C) Section 1.12(b) (12 U.S.C. 2020(b)) is
amended--
(i) in paragraph (1), by inserting ``(as
defined in section 5.55(a)(3))'' after
``government-guaranteed loans''; and
(ii) in paragraph (3), by inserting ``(as
so defined)'' after ``government-guaranteed
loans'' each place such term appears.
(b) Allocation to Insured System Banks and Other System
Institutions of Excess Amounts in the Farm Credit Insurance Fund.--
Section 5.55 of the Farm Credit Act of 1971 (12 U.S.C. 2277a-4) is
amended by adding at the end the following:
``(e) Allocation to System Institutions of Excess Reserves.--
``(1) Establishment of allocated insurance reserves
accounts.--There is hereby established in the Farm Credit
Insurance Fund an Allocated Insurance Reserves Account--
``(A) for each insured System bank; and
``(B) subject to paragraph (6)(C), for all holders,
in the aggregate, of Financial Assistance Corporation
stock.
``(2) Treatment.--Amounts in any Allocated Insurance
Reserves Account shall be considered to be part of the Farm
Credit Insurance Fund.
``(3) Annual allocations.--If, at the end of any calendar
year, the aggregate of the amounts in the Farm Credit Insurance
Fund exceeds the average secure base amount for the calendar
year (as calculated on an average daily balance basis), the
Corporation shall allocate to the Allocated Insurance Reserves
Accounts the excess amount less the amount that the
Corporation, in its sole discretion, determines to be the sum
of the estimated operating expenses and estimated insurance
obligations of the Corporation for the immediately succeeding
calendar year.
``(4) Allocation formula.--From the total amount required
to be allocated at the end of a calendar year under paragraph
(3)--
``(A) 10 percent of the total amount shall be
credited to the Allocated Insurance Reserves Account
established under paragraph (1)(B), subject to
paragraph (6)(C); and
``(B) there shall be credited to the Allocated
Insurance Reserves Account of each insured System bank
an amount that bears the same ratio to the total amount
(less any amount credited under subparagraph (A)) as
the average principal outstanding for the 3-year period
ending on the end of the calendar year on loans made by
the bank that are in accrual status bears to the
average principal outstanding for the 3-year period
ending on the end of the calendar year on loans made by
all insured System banks that are in accrual status
(excluding, in each case, the guaranteed portions of
government-guaranteed loans described in subsection
(a)(1)(C)).
``(5) Use of funds in allocated insurance reserves
accounts.--To the extent that the sum of the operating expenses
of the Corporation and the insurance obligations of the
Corporation for a calendar year exceeds the sum of operating
expenses and insurance obligations determined under paragraph
(3) for the calendar year, the Corporation shall cover the
expenses and obligations by--
``(A) reducing each Allocated Insurance Reserves
Account by the same proportion; and
``(B) expending the amounts obtained under
subparagraph (A) before expending other amounts in the
Fund.
``(6) Other disposition of account funds.--
``(A) In general.--As soon as practicable during
each calendar year beginning more than 8 years after
the date on which the aggregate of the amounts in the
Farm Credit Insurance Fund exceeds the secure base
amount, but not earlier than January 1, 2005, the
Corporation may--
``(i) subject to subparagraphs (D) and (F),
pay to each insured System bank, in a manner
determined by the Corporation, an amount equal
to the lesser of--
``(I) 20 percent of the balance in
the insured System bank's Allocated
Insurance Reserves Account as of the
preceding December 31; or
``(II) 20 percent of the balance in
the bank's Allocated Insurance Reserves
Account on the date of the payment; and
``(ii) subject to subparagraphs (C), (E),
and (F), pay to each System bank and
association holding Financial Assistance
Corporation stock a proportionate share,
determined by dividing the number of shares of
Financial Assistance Corporation stock held by
the institution by the total number of shares
of Financial Assistance Corporation stock
outstanding, of the lesser of--
``(I) 20 percent of the balance in
the Allocated Insurance Reserves
Account established under paragraph
(1)(B) as of the preceding December 31;
or
``(II) 20 percent of the balance in
the Allocated Insurance Reserves
Account established under paragraph
(1)(B) on the date of the payment.
``(B) Authority to eliminate or reduce payments.--
The Corporation may eliminate or reduce payments during
a calendar year under subparagraph (A) if the
Corporation determines, in its sole discretion, that
the payments, or other circumstances that might require
use of the Farm Credit Insurance Fund, could cause the
amount in the Farm Credit Insurance Fund during the
calendar year to be less than the secure base amount.
``(C) Reimbursement for financial assistance
corporation stock.--
``(i) Sufficient funding.--Notwithstanding
paragraph (4)(A), on provision by the
Corporation for the accumulation in the Account
established under paragraph (1)(B) of funds in
an amount equal to $56,000,000 (in addition to
the amounts described in subparagraph (F)(ii)),
the Corporation shall not allocate any further
funds to the Account except to replenish the
Account if funds are diminished below
$56,000,000 by the Corporation under paragraph
(5).
``(ii) Wind down and termination.--
``(I) Final disbursements.--On
disbursement of $53,000,000 (in
addition to the amounts described in
subparagraph (F)(ii)) from the
Allocated Insurance Reserves Account,
the Corporation shall disburse the
remaining amounts in the Account, as
determined under subparagraph (A)(ii),
without regard to the percentage
limitations in subclauses (I) and (II)
of subparagraph (A)(ii).
``(II) Termination of account.--On
disbursement of $56,000,000 (in
addition to the amounts described in
subparagraph (F)(ii)) from the
Allocated Insurance Reserves Account,
the Corporation shall close the Account
established under paragraph (1)(B) and
transfer any remaining funds in the
Account to the remaining Allocated
Insurance Reserves Accounts in
accordance with paragraph (4)(B) for
the calendar year in which the transfer
occurs.
``(D) Distribution of payments received.--Not later
than 60 days after receipt of a payment made under
subparagraph (A)(i), each insured System bank, in
consultation with affiliated associations of the
insured System bank, and taking into account the direct
or indirect payment of insurance premiums by the
associations, shall develop and implement an equitable
plan to distribute payments received under subparagraph
(A)(i) among the bank and associations of the bank.
``(E) Exception for previously reimbursed
associations.--For purposes of subparagraph (A)(ii), in
any Farm Credit district in which the funding bank has
reimbursed 1 or more affiliated associations of the
bank for the previously unreimbursed portion of the
Financial Assistance Corporation stock held by the
associations, the funding bank shall be deemed to be
the holder of the shares of Financial Assistance
Corporation stock for which the funding bank has
provided the reimbursement.
``(F) Initial payment.--Notwithstanding
subparagraph (A), the initial payment made to each
payee under subparagraph (A) shall be in such amount
determined by the Corporation to be equal to the sum
of--
``(i) the total of the amounts that would
have been paid if payments under subparagraph
(A) had been authorized to begin, under the
same terms and conditions, in the first
calendar year beginning more than 5 years after
the date on which the aggregate of the amounts
in the Farm Credit Insurance Fund exceeds the
secure base amount, and to continue through the
2 immediately subsequent years;
``(ii) interest earned on any amounts that
would have been paid as described in clause (i)
from the date on which the payments would have
been paid as described in clause (i); and
``(iii) the payment to be made in the
initial year described in subparagraph (A),
based on the amount in each Account after
subtracting the amounts to be paid under
clauses (i) and (ii).''
(c) Technical Amendments.--Section 5.55(d) of the Farm Credit Act
of 1971 (12 U.S.C. 2277a-4(d)) is amended--
(1) in the matter preceding paragraph (1)--
(A) by striking ``subsections (a) and (c)'' and
inserting ``subsections (a), (c), and (e)''; and
(B) by striking ``a Farm Credit Bank'' and
inserting ``an insured System bank''; and
(2) in paragraphs (1), (2), and (3), by striking ``Farm
Credit Bank'' each place it appears and inserting ``insured
System bank''.
SEC. 696. EXAMINATIONS BY THE FARM CREDIT SYSTEM INSURANCE CORPORATION.
Section 5.59(b)(1)(A) of the Farm Credit Act of 1971 (12 U.S.C.
2277a-8(b)(1)(A)) is amended by adding at the end the following:
``Notwithstanding any other provision of this Act, on cancellation of
the charter of a System institution, the Corporation shall have
authority to examine the system institution in receivership. An
examination shall be performed at such intervals as the Corporation
shall determine.''.
SEC. 697. POWERS WITH RESPECT TO TROUBLED INSURED SYSTEM BANKS.
(a) Least-Cost Resolution.--Section 5.61(a)(3) of the Farm Credit
Act of 1971 (12 U.S.C. 2277a-10(a)) is amended--
(1) by redesignating subparagraph (B) as subparagraph (F);
and
(2) by striking subparagraph (A) and inserting the
following:
``(A) Least-cost resolution.--Assistance may not be
provided to an insured System bank under this
subsection unless the means of providing the assistance
is the least costly means of providing the assistance
by the Farm Credit Insurance Fund of all possible
alternatives available to the Corporation, including
liquidation of the bank (including paying the insured
obligations issued on behalf of the bank). Before
making a least-cost determination under this
subparagraph, the Corporation shall accord such other
insured System banks as the Corporation determines to
be appropriate the opportunity to submit information
relating to the determination.
``(B) Determining least costly approach.--In
determining the least costly alternative under
subparagraph (A), the Corporation shall--
``(i) evaluate alternatives on a present-
value basis, using a reasonable discount rate;
``(ii) document the evaluation and the
assumptions on which the evaluation is based;
and
``(iii) retain the documentation for not
less than 5 years.
``(C) Time of determination.--
``(i) General rule.--For purposes of this
subsection, the determination of the costs of
providing any assistance under any provision of
this section with respect to any insured System
bank shall be made as of the date on which the
Corporation makes the determination to provide
the assistance to the institution under this
section.
``(ii) Rule for liquidations.--For purposes
of this subsection, the determination of the
costs of liquidation of any insured System bank
shall be made as of the earliest of--
``(I) the date on which a
conservator is appointed for the
insured System bank;
``(II) the date on which a receiver
is appointed for the insured System
bank; or
``(III) the date on which the
Corporation makes any determination to
provide any assistance under this
section with respect to the insured
System bank.
``(D) Rule for stand-alone assistance.--Before
providing any assistance under paragraph (1), the
Corporation shall evaluate the adequacy of managerial
resources of the insured System bank. The continued
service of any director or senior ranking officer who
serves in a policymaking role for the assisted insured
System bank, as determined by the Corporation, shall be
subject to approval by the Corporation as a condition
of assistance.
``(E) Discretionary determinations.--Any
determination that the Corporation makes under this
paragraph shall be in the sole discretion of the
Corporation.''.
(b) Conforming Amendments.--Section 5.61(a) of the Farm Credit Act
of 1971 (12 U.S.C. 2277a-10(a)) is amended--
(1) in paragraph (1) by striking ``In general.--'' and
inserting ``Stand-alone assistance.--''; and
(2) in paragraph (2)--
(A) by striking ``Enumerated powers.--'' and
inserting ``Facilitation of mergers or consolidation.--
''; and
(B) in subparagraph (A) by striking ``Facilitation
of mergers or consolidation.--'' and inserting ``In
general.--''.
SEC. 698. OVERSIGHT AND REGULATORY ACTIONS BY THE FARM CREDIT SYSTEM
INSURANCE CORPORATION.
The Farm Credit Act of 1971 is amended by inserting after section
5.61 (12 U.S.C. 2279a-10) the following:
``SEC. 5.61A. OVERSIGHT ACTIONS BY THE CORPORATION.
``(a) Definitions.--In this section, the term `institution' means--
``(1) an insured System bank; and
``(2) a production credit association or other association
making loans under section 7.6 with a direct loan payable to
the funding bank of the association that comprises 20 percent
or more of the funding bank's total loan volume net of
nonaccrual loans.
``(b) Consultation Regarding Participation of Undercapitalized
Banks in Issuance of Insured Obligations.--The Farm Credit
Administration shall consult with the Corporation prior to approving an
insured obligation that is to be issued by or on behalf of, or
participated in by, any insured System bank that fails to meet the
minimum level for any capital requirement established by the Farm
Credit Administration for the bank.
``(c) Consultation Regarding Applications for Mergers and
Restructurings.--
``(1) Corporation to receive copy of transaction
applications.--On receiving an application for a merger or
restructuring of an institution, the Farm Credit Administration
shall forward a copy of the application to the Corporation.
``(2) Consultation required.--If the proposed merger or
restructuring involves an institution that fails to meet the
minimum level for any capital requirement established by the
Farm Credit Administration applicable to the institution, the
Farm Credit Administration shall allow 30 days within which the
Corporation may submit the views and recommendations of the
Corporation, including any conditions for approval. In
determining whether to approve or disapprove any proposed
merger or restructuring, the Farm Credit Administration shall
give due consideration to the views and recommendations of the
Corporation.
``SEC. 5.61B. AUTHORITY TO REGULATE GOLDEN PARACHUTE AND
INDEMNIFICATION PAYMENTS.
``(a) Definitions.--In this section:
``(1) Golden parachute payment.--The term `golden parachute
payment'--
``(A) means a payment (or any agreement to make a
payment) in the nature of compensation for the benefit
of any institution-related party under an obligation of
any Farm Credit System institution that--
``(i) is contingent on the termination of
the party's relationship with the institution;
and
``(ii) is received on or after the date on
which--
``(I) the institution is insolvent;
``(II) a conservator or receiver is
appointed for the institution;
``(III) the institution has been
assigned by the Farm Credit
Administration a composite CAMEL rating
of 4 or 5 under the Farm Credit
Administration Rating System, or an
equivalent rating; or
``(IV) the Corporation otherwise
determines that the institution is in a
troubled condition (as defined in
regulations issued by the Corporation);
and
``(B) includes a payment that would be a golden
parachute payment but for the fact that the payment was
made before the date referred to in subparagraph
(A)(ii) if the payment was made in contemplation of the
occurrence of an event described in any subclause of
subparagraph (A); but
``(C) does not include--
``(i) a payment made under a retirement
plan that is qualified (or is intended to be
qualified) under section 401 of the Internal
Revenue Code of 1986 or other nondiscriminatory
benefit plan;
``(ii) a payment made under a bona fide
supplemental executive retirement plan,
deferred compensation plan, or other
arrangement that the Corporation determines, by
regulation or order, to be permissible; or
``(iii) a payment made by reason of the
death or disability of an institution-related
party.
``(2) Indemnification payment.--The term `indemnification
payment' means a payment (or any agreement to make a payment)
by any Farm Credit System institution for the benefit of any
person who is or was an institution-related party, to pay or
reimburse the person for any liability or legal expense with
regard to any administrative proceeding or civil action
instituted by the Farm Credit Administration that results in a
final order under which the person--
``(A) is assessed a civil money penalty; or
``(B) is removed or prohibited from participating
in the conduct of the affairs of the institution.
``(3) Institution-related party.--The term `institution-
related party' means--
``(A) a director, officer, employee, or agent for a
Farm Credit System institution or any conservator or
receiver of such an institution;
``(B) a stockholder (other than another Farm Credit
System institution), consultant, joint venture partner,
or any other person determined by the Farm Credit
Administration to be a participant in the conduct of
the affairs of a Farm Credit System institution; and
``(C) an independent contractor (including any
attorney, appraiser, or accountant) that knowingly or
recklessly participates in any violation of any law or
regulation, any breach of fiduciary duty, or any unsafe
or unsound practice that caused or is likely to cause
more than a minimal financial loss to, or a significant
adverse effect on, the Farm Credit System institution.
``(4) Liability or legal expense.--The term `liability or
legal expense' means--
``(A) a legal or other professional expense
incurred in connection with any claim, proceeding, or
action;
``(B) the amount of, and any cost incurred in
connection with, any settlement of any claim,
proceeding, or action; and
``(C) the amount of, and any cost incurred in
connection with, any judgment or penalty imposed with
respect to any claim, proceeding, or action.
``(5) Payment.--The term `payment' means--
``(A) a direct or indirect transfer of any funds or
any asset; and
``(B) any segregation of any funds or assets for
the purpose of making, or under an agreement to make,
any payment after the date on which the funds or assets
are segregated, without regard to whether the
obligation to make the payment is contingent on--
``(i) the determination, after that date,
of the liability for the payment of the amount;
or
``(ii) the liquidation, after that date, of
the amount of the payment.
``(b) Prohibition.--The Corporation may prohibit or limit, by
regulation or order, any golden parachute payment or indemnification
payment by a Farm Credit System institution (including any conservator
or receiver of the Federal Agricultural Mortgage Corporation) in
troubled condition (as defined in regulations issued by the
Corporation).
``(c) Factors To Be Taken into Account.--The Corporation shall
prescribe, by regulation, the factors to be considered by the
Corporation in taking any action under subsection (b). The factors may
include--
``(1) whether there is a reasonable basis to believe that
an institution-related party has committed any fraudulent act
or omission, breach of trust or fiduciary duty, or insider
abuse with regard to the Farm Credit System institution
involved that has had a material effect on the financial
condition of the institution;
``(2) whether there is a reasonable basis to believe that
the institution-related party is substantially responsible for
the insolvency of the Farm Credit System institution, the
appointment of a conservator or receiver for the institution,
or the institution's troubled condition (as defined in
regulations prescribed by the Corporation);
``(3) whether there is a reasonable basis to believe that
the institution-related party has materially violated any
applicable law or regulation that has had a material effect on
the financial condition of the institution;
``(4) whether there is a reasonable basis to believe that
the institution-related party has violated or conspired to
violate--
``(A) section 215, 657, 1006, 1014, or 1344 of
title 18, United States Code; or
``(B) section 1341 or 1343 of title 18, United
States Code, affecting a Farm Credit System
institution;
``(5) whether the institution-related party was in a
position of managerial or fiduciary responsibility; and
``(6) the length of time that the party was related to the
Farm Credit System institution and the degree to which--
``(A) the payment reasonably reflects compensation
earned over the period of employment; and
``(B) the compensation represents a reasonable
payment for services rendered.
``(d) Certain Payments Prohibited.--No Farm Credit System
institution may prepay the salary or any liability or legal expense of
any institution-related party if the payment is made--
``(1) in contemplation of the insolvency of the institution
or after the commission of an act of insolvency; and
``(2) with a view to, or with the result of--
``(A) preventing the proper application of the
assets of the institution to creditors; or
``(B) preferring 1 creditor over another creditor.
``(e) Rule of Construction.--Nothing in this section--
``(1) prohibits any Farm Credit System institution from
purchasing any commercial insurance policy or fidelity bond, so
long as the insurance policy or bond does not cover any legal
or liability expense of an institution described in subsection
(a)(2); or
``(2) limits the powers, functions, or responsibilities of
the Farm Credit Administration.''.
SEC. 699. FARM CREDIT SYSTEM INSURANCE CORPORATION BOARD OF DIRECTORS.
(a) In General.--Section 5.53 of the Farm Credit Act of 1971 (12
U.S.C. 2277a-2) is amended to read as follows:
``SEC. 5.53. BOARD OF DIRECTORS.
``(a) Establishment.--The Corporation shall be managed by a Board
of Directors that shall consist of the members of the Farm Credit
Administration Board.
``(b) Chairman.--The Board of Directors shall be chaired by any
Board member other than the Chairman of the Farm Credit Administration
Board.''.
(b) Conforming Amendments.--
(1) Section 5314 of title 5, United States Code, is amended
by striking ``Chairperson, Board of Directors of the Farm
Credit System Insurance Corporation.''.
(2) Section 5315 of title 5, United States Code, is amended
by striking ``Members, Board of Directors of the Farm Credit
System Insurance Corporation.''.
SEC. 699A. LIABILITY FOR MAKING CRIMINAL REFERRALS.
(a) In General.--Any institution of the Farm Credit System, or any
director, officer, employee, or agent of a Farm Credit System
institution, that discloses to a Government authority information
proffered in good faith that may be relevant to a possible violation of
any law or regulation shall not be liable to any person under any law
of the United States or any State--
(1) for the disclosure; or
(2) for any failure to notify the person involved in the
possible violation.
(b) No Prohibition on Disclosure.--Any institution of the Farm
Credit System, or any director, officer, employee, or agent of a Farm
Credit System institution, may disclose information to a Government
authority that may be relevant to a possible violation of any law or
regulation.
TITLE VII--RURAL DEVELOPMENT
Subtitle A--Amendments to the Food, Agriculture, Conservation, and
Trade Act of 1990
CHAPTER 1--GENERAL PROVISIONS
SEC. 701. RURAL INVESTMENT PARTNERSHIPS.
(a) In General.--Section 2310(c)(1) of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 2007(c)(1)) is amended by
striking ``1996'' and inserting ``2002''.
(b) Authorization of Appropriations.--The first sentence of section
2313(d) of the Food, Agriculture, Conservation, and Trade Act of 1990
(7 U.S.C. 2007c) is amended by striking ``$10,000,000'' and all that
follows through ``1996'' and inserting ``$4,700,000 for each of fiscal
years 1996 through 2002''.
SEC. 702. WATER AND WASTE FACILITY FINANCING.
Section 2322 of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 1926-1) is repealed.
SEC. 703. RURAL WASTEWATER CIRCUIT RIDER PROGRAM.
Section 2324 of the Food, Agriculture, Conservation, and Trade Act
of 1990 (Public Law 101-624; 7 U.S.C. 1926 note) is repealed.
SEC. 704. TELEMEDICINE AND DISTANCE LEARNING SERVICES IN RURAL AREAS.
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.) is
amended to read as follows:
``CHAPTER 1--TELEMEDICINE AND DISTANCE LEARNING SERVICES IN RURAL AREAS
``SEC. 2331. PURPOSE.
``The purpose of the financing programs established under this
chapter is to encourage and improve telemedicine services and distance
learning services in rural areas through the use of telecommunications,
computer networks, and related advanced technologies by students,
teachers, medical professionals, and rural residents.
``SEC. 2332. DEFINITIONS.
``In this chapter:
``(1) Construct.--The term `construct' means to construct,
acquire, install, improve, or extend a facility or system.
``(2) Cost of money loan.--The term `cost of money loan'
means a loan made under this chapter bearing interest at a rate
equal to the then current cost to the Federal Government of
loans of similar maturity.
``(3) Secretary.--The term `Secretary' means the Secretary
of Agriculture.
``SEC. 2333. TELEMEDICINE AND DISTANCE LEARNING SERVICES IN RURAL
AREAS.
``(a) Services to Rural Areas.--The Secretary is authorized to
provide financial assistance for the purpose of financing the
construction of facilities and systems to provide telemedicine services
and distance learning services to persons and entities in rural areas.
``(b) Financial Assistance.--
``(1) In general.--Financial assistance shall consist of
grants or cost of money loans, or both.
``(2) Form.--The Secretary shall determine the portion of
the financial assistance provided to a recipient that consists
of grants and that consists of cost of money loans so as to
result in the maximum feasible repayment to the Federal
Government of the financial assistance, based on the ability to
repay of the recipient and full utilization of funds made
available to carry out this chapter.
``(c) Recipients.--
``(1) In general.--The Secretary may provide financial
assistance under this chapter to--
``(A) entities using telemedicine services or
distance learning services, or both; and
``(B) entities providing or proposing to provide
telemedicine service or distance learning service, or
both, to other persons at rates reflecting the benefit
of the financial assistance.
``(2) Electric or telecommunications borrowers.--
``(A) Loans to borrowers.--Subject to subparagraph
(B), the Secretary may provide a cost of money loan
under this chapter to a borrower of an electric or
telecommunications loan under the Rural Electrification
Act of 1936 (7 U.S.C. 901 et seq.). A borrower
receiving a cost of money loan under this paragraph
shall--
``(i) make the funds provided available to
entities that qualify under paragraph (1) for
projects satisfying the requirements of this
chapter;
``(ii) use the funds provided to acquire,
install, improve, or extend a system for the
purposes of this chapter; or
``(iii) use the funds provided to install,
improve, or extend a facility for the purposes
of this chapter.
``(B) Limitations.--A borrower of an electric or
telecommunications loan under the Rural Electrification
Act of 1936 shall--
``(i) make a system or facility funded
under subparagraph (A) available to entities
that qualify under paragraph (1); and
``(ii) neither retain from the proceeds of
a loan provided under subparagraph (A), nor
assess a qualifying entity under paragraph (1),
any amount except as may be required to pay the
actual costs incurred in administering the loan
funds or making the system or facility
available.
``(3) Assistance to provide or improve services.--Financial
assistance may be provided under this chapter for a facility
regardless of the location of the facility if the Secretary
determines that the assistance is necessary to provide or
improve telemedicine services or distance learning services in
a rural area.
``(d) Priority.--The Secretary shall establish procedures to
prioritize financial assistance provided under this chapter
considering--
``(1) the need for the assistance in the affected rural
area;
``(2) the financial need of the applicant;
``(3) the population sparsity of the affected rural area;
``(4) the local involvement in the project serving the
affected rural area;
``(5) geographic diversity among the recipients of
financial assistance;
``(6) the utilization of the telecommunications facilities
of the existing telecommunications provider;
``(7) the portion of total project financing provided by
the applicant from the funds of the applicant;
``(8) the portion of project financing provided by the
applicant with funds obtained from non-Federal sources;
``(9) the joint utilization of facilities financed by other
financial assistance;
``(10) the coordination of the proposed project with
regional projects or networks;
``(11) service to the widest practical number of persons
within the general geographic area covered by the financial
assistance;
``(12) conformity with the State strategic plan as prepared
under section 381D of the Consolidated Farm and Rural
Development Act; and
``(13) other factors determined appropriate by the
Secretary.
``(e) Maximum Amount of Assistance to Individual Recipients.--The
Secretary may establish the maximum amount of financial assistance to
be made available to an individual recipient for each fiscal year under
this chapter by publishing notice in the Federal Register. The notice
shall be published not more than 45 days after funds are made available
to carry out this chapter during a fiscal year.
``(f) Use of Funds.--Financial assistance provided under this
chapter shall be used for--
``(1) the development and acquisition of instructional
programming;
``(2) the development and acquisition, through lease or
purchase, of computer hardware and software, audio and visual
equipment, computer network components, telecommunications
terminal equipment, telecommunications transmission facilities,
data terminal equipment, or interactive video equipment, and
other facilities that would further telemedicine services or
distance learning services, or both;
``(3) providing technical assistance and instruction for
the development or use of the programming, equipment, or
facilities referred to in paragraphs (1) and (2); or
``(4) other uses that are consistent with this chapter, as
determined by the Secretary.
``(g) Salaries and Expenses.--Notwithstanding subsection (f),
financial assistance provided under this chapter shall not be used for
paying salaries of employees or administrative expenses.
``(h) Expediting Coordinated Telephone Loans.--
``(1) In general.--The Secretary may establish and carry
out procedures to ensure that expedited consideration and
determination is given to applications for loans and advances
of funds submitted by local exchange carriers under this
chapter and the Rural Electrification Act of 1936 (7 U.S.C. 901
et seq.) to enable the exchange carriers to provide advanced
telecommunications services in rural areas in conjunction with
any other projects carried out under this chapter.
``(2) Deadline imposed on secretary.--Not later than 45
days after the receipt of a completed application for an
expedited telephone loan under paragraph (1), the Secretary
shall respond to the application. The Secretary shall notify
the applicant in writing of the decision of the Secretary
regarding each expedited loan application.
``(i) Notification of Local Exchange Carrier.--
``(1) Applicants.--Each applicant for a grant for a
telemedicine or distance learning project established under
this chapter shall notify the appropriate local telephone
exchange carrier regarding the application filed with the
Secretary for the grant.
``(2) Secretary.--The Secretary shall--
``(A) publish notice of applications received for
grants under this chapter for telemedicine or distance
learning projects; and
``(B) make the applications available for
inspection.
``SEC. 2334. ADMINISTRATION.
``(a) Nonduplication.--The Secretary shall ensure that facilities
constructed using financial assistance provided under this chapter do
not duplicate adequate established telemedicine services or distance
learning services.
``(b) Loan Maturity.--The maturities of cost of money loans shall
be determined by the Secretary, based on the useful life of the
facility being financed, except that the loan shall not be for a period
of more than 10 years.
``(c) Loan Security and Feasibility.--The Secretary shall make a
cost of money loan only after determining that the security for the
loan is reasonably adequate and that the loan will be repaid within the
period of the loan.
``(d) Encouraging Consortia.--The Secretary shall encourage the
development of consortia to provide telemedicine services or distance
learning services, or both, through telecommunications in rural areas
served by a telecommunications provider.
``(e) Cooperation With Other Agencies.--The Secretary shall
cooperate, to the extent practicable, with other Federal and State
agencies with similar grant or loan programs to pool resources for
funding meritorious proposals in rural areas.
``(f) Informational Efforts.--The Secretary shall establish and
implement procedures to carry out informational efforts to advise
potential end users located in rural areas of each State about the
program authorized by this chapter.
``SEC. 2335. REGULATIONS.
``Not later than 180 days after the effective date of the
Agricultural Reform and Improvement Act of 1996, the Secretary shall
issue regulations to carry out this chapter.
``SEC. 2335A. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out this chapter
$100,000,000 for each of fiscal years 1996 through 2002.''.
SEC. 705. LIMITATION ON AUTHORIZATION OF APPROPRIATIONS FOR RURAL
TECHNOLOGY GRANTS.
Section 2347 of the Food, Agriculture, Conservation, and Trade Act
of 1990 (Public Law 101-624; 104 Stat. 4034) is amended--
(1) by striking ``(a) In General.--''; and
(2) by striking subsection (b).
SEC. 706. MONITORING THE ECONOMIC PROGRESS OF RURAL AMERICA.
Section 2382 of the Food, Agriculture, Conservation, and Trade Act
of 1990 (Public Law 101-624; 13 U.S.C. 141 note) is repealed.
SEC. 707. ANALYSIS BY OFFICE OF TECHNOLOGY ASSESSMENT.
Section 2385 of the Food, Agriculture, Conservation, and Trade Act
of 1990 (Public Law 101-624; 7 U.S.C. 950aaa-4 note) is repealed.
SEC. 708. RURAL HEALTH INFRASTRUCTURE IMPROVEMENT.
Section 2391 of the Food, Agriculture, Conservation, and Trade Act
of 1990 (Public Law 101-624; 7 U.S.C. 2662 note) is repealed.
SEC. 709. CENSUS OF AGRICULTURE.
Section 2392 of the Food, Agriculture, Conservation, and Trade Act
of 1990 (Public Law 101-624; 104 Stat. 4057) is repealed.
CHAPTER 2--ALTERNATIVE AGRICULTURAL RESEARCH AND COMMERCIALIZATION
SEC. 721. DEFINITIONS.
Section 1657(c) of the Food, Agriculture, Conservation, and Trade
Act of 1990 (7 U.S.C. 5901(c)) is amended--
(1) by striking paragraphs (3) and (4);
(2) by redesignating paragraph (5) as paragraph (3);
(3) by redesignating paragraphs (6) through (12) as
paragraphs (7) through (13), respectively; and
(4) by inserting after paragraph (3) (as redesignated by
paragraph (2)) the following:
``(4) Corporate board.--The term `Corporate Board' means
the Board of Directors of the Corporation described in section
1659.
``(5) Corporation.--The term `Corporation' means the
Alternative Agricultural Research and Commercialization
Corporation established under section 1658.
``(6) Executive director.--The term `Executive Director'
means the Executive Director of the Corporation appointed under
section 1659(d)(2).''.
SEC. 722. ALTERNATIVE AGRICULTURAL RESEARCH AND COMMERCIALIZATION
CORPORATION.
(a) In General.--Section 1658 of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 5902) is amended to read
as follows:
``SEC. 1658. ALTERNATIVE AGRICULTURAL RESEARCH AND COMMERCIALIZATION
CORPORATION.
``(a) Establishment.--To carry out this subtitle, there is created
a body corporate to be known as the Alternative Agricultural Research
and Commercialization Corporation, which shall be an agency of the
United States, within the Department of Agriculture, subject to the
general supervision and direction of the Secretary, except as
specifically provided for in this subtitle.
``(b) Purpose.--The purpose of the Corporation is to--
``(1) expedite the development and market penetration of
industrial, nonfood, nonfeed products from agricultural and
forestry materials; and
``(2) assist the private sector in bridging the gap between
research results and the commercialization of the research.
``(c) Place of Incorporation.--The Corporation shall be located in
the District of Columbia.
``(d) Central Office.--The Secretary shall provide facilities for
the principal office of the Corporation within the Washington, D.C.
metropolitan area.
``(e) Wholly-Owned Government Corporation.--The Corporation shall
be considered a wholly-owned government corporation for purposes of
chapter 91 of title 31, United States Code.
``(f) General Powers.--In addition to any other powers granted to
the Corporation under this subtitle, the Corporation--
``(1) shall have succession in its corporate name;
``(2) may adopt, alter, and rescind any bylaw and adopt and
alter a corporate seal, which shall be judicially noticed;
``(3) may enter into any agreement or contract with a
person or private or governmental agency, except that the
Corporation shall not provide any financial assistance unless
specifically authorized under this subtitle;
``(4) may lease, purchase, accept a gift or donation of, or
otherwise acquire, use, own, hold, improve, or otherwise deal
in or with, and sell, convey, mortgage, pledge, lease,
exchange, or otherwise dispose of, any property, real,
personal, or mixed, or any interest in property, as the
Corporation considers necessary in the transaction of the
business of the Corporation, except that this paragraph shall
not provide authority for carrying out a program of real estate
investment;
``(5) may sue and be sued in the corporate name of the
Corporation, except that--
``(A) no attachment, injunction, garnishment, or
similar process shall be issued against the Corporation
or property of the Corporation; and
``(B) exclusive original jurisdiction shall reside
in the district courts of the United States, but the
Corporation may intervene in any court in any suit,
action, or proceeding in which the Corporation has an
interest;
``(6) may independently retain legal representation;
``(7) may provide for and designate such committees, and
the functions of the committees, as the Corporate Board
considers necessary or desirable,
``(8) may indemnify the Executive Director and other
officers of the Corporation, as the Corporate Board considers
necessary and desirable, except that the Executive Director and
officers shall not be indemnified for an act outside the scope
of employment;
``(9) may, with the consent of any board, commission,
independent establishment, or executive department of the
Federal Government, including any field service, use
information, services, facilities, officials, and employees in
carrying out this subtitle, and pay for the use, which payments
shall be credited to the applicable appropriation that incurred
the expense;
``(10) may obtain the services and fix the compensation of
any consultant and otherwise procure temporary and intermittent
services under section 3109(b) of title 5, United States Code;
``(11) may use the United States mails on the same terms
and conditions as the Executive agencies of the Federal
Government;
``(12) shall have the rights, privileges, and immunities of
the United States with respect to the right to priority of
payment with respect to debts due from bankrupt, insolvent, or
deceased creditors;
``(13) may collect or compromise any obligations assigned
to or held by the Corporation, including any legal or equitable
rights accruing to the Corporation;
``(14) shall determine the character of, and necessity for,
obligations and expenditures of the Corporation and the manner
in which the obligations and expenditures shall be incurred,
allowed, and paid, subject to provisions of law specifically
applicable to Government corporations;
``(15) may make final and conclusive settlement and
adjustment of any claim by or against the Corporation or a
fiscal officer of the Corporation;
``(16) may sell assets, loans, and equity interests
acquired in connection with the financing of projects funded by
the Corporation; and
``(17) may exercise all other lawful powers necessarily or
reasonably related to the establishment of the Corporation to
carry out this subtitle and the powers, purposes, functions,
duties, and authorized activities of the Corporation.
``(g) Specific Powers.--To carry out this subtitle, the Corporation
shall have the authority to--
``(1) make grants to, and enter into cooperative agreements
and contracts with, eligible applicants for research,
development, and demonstration projects in accordance with
section 1660;
``(2) make loans and interest subsidy payments and invest
venture capital in accordance with section 1661;
``(3) collect and disseminate information concerning State,
regional, and local commercialization projects;
``(4) search for new nonfood, nonfeed products that may be
produced from agricultural commodities and for processes to
produce the products;
``(5) administer, maintain, and dispense funds from the
Alternative Agricultural Research and Commercialization
Revolving Fund to facilitate the conduct of activities under
this subtitle; and
``(6) engage in other activities incident to carrying out
the functions of the Corporation.''.
(b) Wholly Owned Government Corporation.--Section 9101(3) of title
31, United States Code, is amended--
(1) by redesignating subparagraph (N) (relating to the
Uranium Enrichment Corporation) as subparagraph (O); and
(2) by adding at the end the following:
``(P) the Alternative Agricultural Research and
Commercialization Corporation.''.
(c) Conforming Amendment.--Section 211(b)(5) of the Department of
Agriculture Reorganization Act of 1994 (7 U.S.C. 6911(b)(5)) is amended
by striking ``Alternative Agricultural Research and Commercialization
Board'' and inserting ``Corporate Board of the Alternative Agricultural
Research and Commercialization Corporation''.
SEC. 723. BOARD OF DIRECTORS, EMPLOYEES, AND FACILITIES.
(a) In General.--Section 1659 of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 5903) is amended to read
as follows:
``SEC. 1659. BOARD OF DIRECTORS, EMPLOYEES, AND FACILITIES.
``(a) In General.--The powers of the Corporation shall be vested in
a Corporate Board.
``(b) Members of the Corporate Board.--The Corporate Board shall
consist of 10 members as follows:
``(1) The Under Secretary of Agriculture for Rural Economic
and Community Development.
``(2) The Under Secretary of Agriculture for Research,
Education, and Economics.
``(3) 4 members appointed by the Secretary, of whom--
``(A) at least 1 member shall be a representative
of the leading scientific disciplines relevant to the
activities of the Corporation;
``(B) at least 1 member shall be a producer or
processor of agricultural commodities; and
``(C) at least 1 member shall be a person who is
privately engaged in the commercialization of new
nonfood, nonfeed products from agricultural
commodities.
``(4) 2 members appointed by the Secretary who--
``(A) have expertise in areas of applied research
relating to the development or commercialization of new
nonfood, nonfeed products; and
``(B) shall be appointed from a group of at least 4
individuals nominated by the Director of the National
Science Foundation if the nominations are made within
60 days after the date a vacancy occurs.
``(5) 2 members appointed by the Secretary who--
``(A) have expertise in financial and managerial
matters; and
``(B) shall be appointed from a group of at least 4
individuals nominated by the Secretary of Commerce if
the nominations are made within 60 days after the date
a vacancy occurs.
``(c) Responsibilities of the Corporate Board.--
``(1) In general.--The Corporate Board shall--
``(A) be responsible for the general supervision of
the Corporation and Regional Centers established under
section 1663;
``(B) determine (in consultation with Regional
Centers) high priority commercialization areas to
receive assistance under section 1663;
``(C) review any grant, contract, or cooperative
agreement to be made or entered into by the Corporation
under section 1660 and any financial assistance to be
provided under section 1661;
``(D) make the final decision, by majority vote, on
whether and how to provide assistance to an applicant;
and
``(E) using the results of the hearings and other
information and data collected under paragraph (2),
develop and establish a budget plan and a long-term
operating plan to carry out this subtitle.
``(2) Authority of the secretary.--
``(A) In general.--The Secretary shall vacate and
remand to the Board for reconsideration any decision
made pursuant to paragraph (1)(D) if the Secretary
determines that there has been a violation of
subsection (j), or any conflict of interest provisions
of the bylaws of the Board, with respect to the
decision.
``(B) Reasons.--In the case of any violation and
referral of a funding decision to the Board, the
Secretary shall inform the Board of the reasons for any
remand pursuant to subparagraph (A).
``(d) Chairperson.--The members of the Corporate Board shall select
a Chairperson from among the members of the Corporate Board. The term
of office of the Chairperson shall be 2 years. The members referred to
in paragraphs (1) and (2) of subsection (b) may not serve as
Chairperson.
``(e) Executive Director.--
``(1) In general.--The Executive Director of the
Corporation shall be the chief executive officer of the
Corporation, with such power and authority as may be conferred
by the Corporate Board. The Executive Director shall be
appointed by the Corporate Board. The appointment shall be
subject to the approval of the Secretary.
``(2) Compensation.--The Executive Director shall receive
basic pay at the rate provided for level IV of the Executive
Schedule under section 5315 of title 5, United States Code.
``(f) Officers.--The Corporate Board shall establish the offices
and appoint the officers of the Corporation, including a Secretary, and
define the duties of the officers in a manner consistent with this
subtitle.
``(g) Meetings.--The Corporate Board shall meet at least 3 times
each fiscal year at the call of the Chairperson or at the request of
the Executive Director. The location of the meetings shall be subject
to approval of the Executive Director. A quorum of the Corporate Board
shall consist of a majority of the members. The decisions of the
Corporate Board shall be made by majority vote.
``(h) Term; Vacancies.--
``(1) In general.--The term of office of a member of the
Corporate Board shall be 4 years, except that the members
initially appointed shall be appointed to serve staggered
terms. A member appointed to fill a vacancy for an unexpired
term may be appointed only for the remainder of the term. A
vacancy on the Corporate Board shall be filled in the same
manner as the original appointment. The Secretary shall not
remove a member of the Corporate Board except for cause.
``(2) Transition measure.--An individual who is serving on
the Alternative Agricultural Research and Commercialization
Board on the day before the effective date of the Agricultural
Reform and Improvement Act of 1996 may be appointed to the
Corporate Board by the Secretary for a term that does not
exceed the term of the individual on the Alternative
Agricultural Research and Commercialization Board if the Act
had not been enacted.
``(i) Compensation.--A member of the Corporate Board who is an
officer or employee of the United States shall not receive any
additional compensation by reason of service on the Corporate Board.
Any other member shall receive, for each day (including travel time)
the member is engaged in the performance of the functions of the
Corporate Board, compensation at a rate not to exceed the daily
equivalent of the annual rate in effect for Level IV of the Executive
Schedule. A member of the Corporate Board shall be reimbursed for
travel, subsistence, and other necessary expenses incurred by the
member in the performance of the duties of the member.
``(j) Conflict of Interest; Financial Disclosure.--
``(1) Conflict of interest.--Except as provided in
paragraph (3), no member of the Corporate Board shall vote on
any matter respecting any application, contract, claim, or
other particular matter pending before the Corporation, in
which, to the knowledge of the member, the member, spouse, or
child of the member, partner, or organization in which the
member is serving as officer, director, trustee, partner, or
employee, or any person or organization with whom the member is
negotiating or has any arrangement concerning prospective
employment, has a financial interest.
``(2) Violations.--Action by a member of the Corporate
Board that is contrary to the prohibition contained in
paragraph (1) shall be cause for removal of the member, but
shall not impair or otherwise affect the validity of any
otherwise lawful action by the Corporation in which the member
participated.
``(3) Exceptions.--The prohibitions contained in paragraph
(1) shall not apply if a member of the Corporate Board advises
the Corporate Board of the nature of the particular matter in
which the member proposes to participate, and if the member
makes a full disclosure of the financial interest, prior to any
participation, and the Corporate Board determines, by majority
vote, that the financial interest is too remote or too
inconsequential to affect the integrity of the member's
services to the Corporation in that matter. The member involved
shall not vote on the determination.
``(4) Financial disclosure.--A Board member shall be
subject to the financial disclosure requirements applicable to
a special Government employee (as defined in section 202(a) of
title 18, United States Code).
``(k) Delegation of Authority.--
``(1) In general.--The Corporate Board may, by resolution,
delegate to the Chairperson, the Executive Director, or any
other officer or employee any function, power, or duty assigned
to the Corporation under this subtitle, other than a function,
power, or duty expressly vested in the Corporate Board by
subsections (c) through (n).
``(2) Prohibition on delegation.--Notwithstanding any other
law, the Secretary and any other officer or employee of the
United States shall not make any delegation to the Corporate
Board, the Chairperson, the Executive Director, or the
Corporation of any power, function, or authority not expressly
authorized by this subtitle, unless the delegation is made
pursuant to an authority in law that expressly makes reference
to this section.
``(3) Reorganization act.--Notwithstanding any other law,
the President (through authorities provided under chapter 9,
title 5, United States Code) may not authorize the transfer to
the Corporation of any power, function, or authority in
addition to powers, functions, and authorities provided by law.
``(l) Bylaws.--Notwithstanding section 1658(f)(2), the Corporate
Board shall adopt, and may from time to time amend, any bylaw that is
necessary for the proper management and functioning of the Corporation.
The Corporate Board shall not adopt any bylaw that has not been
reviewed and approved by the Secretary.
``(m) Organization.--The Corporate Board shall provide a system of
organization to fix responsibility and promote efficiency.
``(n) Personnel and Facilities of Corporation.--
``(1) Appointment and compensation of personnel.--The
Corporation may select and appoint officers, attorneys,
employees, and agents, who shall be vested with such powers and
duties as the Corporation may determine.
``(2) Use of facilities and services of the department of
agriculture.--Notwithstanding any other provision of law, to
perform the responsibilities of the Corporation under this
subtitle, the Corporation may partially or jointly utilize the
facilities of and the services of employees of the Department
of Agriculture, without cost to the Corporation.
``(3) Government employment laws.--An officer or employee
of the Corporation shall be subject to all laws of the United
States relating to governmental employment.''.
(b) Conforming Amendment.--Section 5315 of title V, United States
Code, is amended by adding at the end the following:
``Executive Director of the Alternative Agricultural
Research and Commercialization Corporation.''.
SEC. 724. RESEARCH AND DEVELOPMENT GRANTS, CONTRACTS, AND AGREEMENTS.
Section 1660 of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 5904) is amended--
(1) by striking ``Center'' each place it appears and
inserting ``Corporation'';
(2) in subsection (c), by striking ``Board'' and inserting
``Corporate Board''; and
(3) in subsection (f), by striking ``non-Center'' and
inserting ``non-Corporation''.
SEC. 725. COMMERCIALIZATION ASSISTANCE.
Section 1661 of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 5905) is amended--
(1) by striking ``Center'' each place it appears and
inserting ``Corporation'';
(2) by striking ``Board'' each place it appears and
inserting ``Corporate Board'';
(3) by striking subsection (c);
(4) by redesignating subsections (d), (e), and (f) as
subsections (c), (d), and (e), respectively; and
(5) in subsection (c) (as so redesignated)--
(A) in the subsection heading of paragraph (1), by
striking ``director'' and inserting ``executive
director''; and
(B) by striking ``Director'' each place it appears
and inserting ``Executive Director''.
SEC. 726. GENERAL RULES REGARDING THE PROVISION OF ASSISTANCE.
Section 1662 of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 5906) is amended--
(1) by striking ``Center'' each place it appears (except in
subsection (b)) and inserting ``Corporation'';
(2) by striking ``Board'' each place it appears and
inserting ``Corporate Board''; and
(3) in subsection (b)--
(A) in the second sentence, by striking ``Board, a
Regional Center, or the Advisory Council'' and
inserting ``Board or a Regional Center''; and
(B) by striking the third sentence.
SEC. 727. REGIONAL CENTERS.
Section 1663 of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 5907) is amended--
(1) by striking ``Board'' each place it appears and
inserting ``Corporate Board'';
(2) in subsection (e)(8), by striking ``Center'' and
inserting ``Corporation''; and
(3) in subsection (f)--
(A) in paragraph (2), by striking ``in consultation
with the Advisory Council appointed under section
1661(c)''; and
(B) by striking paragraphs (3) and (4) and
inserting the following:
``(3) Recommendation.--The Regional Director, based on the
comments of the reviewers, shall make and submit a
recommendation to the Board. A recommendation submitted by a
Regional Director shall not be binding on the Board.''.
SEC. 728. ALTERNATIVE AGRICULTURAL RESEARCH AND COMMERCIALIZATION
REVOLVING FUND.
Section 1664 of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 5908) is amended to read as follows:
``SEC. 1664. ALTERNATIVE AGRICULTURAL RESEARCH AND COMMERCIALIZATION
REVOLVING FUND.
``(a) Establishment.--There is established in the Treasury of the
United States a revolving fund to be known as the Alternative
Agricultural Research and Commercialization Revolving Fund. The Fund
shall be available to the Corporation, without fiscal year limitation,
to carry out the authorized programs and activities of the Corporation
under this subtitle.
``(b) Contents of Fund.--There shall be deposited in the Fund--
``(1) such amounts as may be appropriated or transferred to
support programs and activities of the Corporation;
``(2) payments received from any source for products,
services, or property furnished in connection with the
activities of the Corporation;
``(3) fees and royalties collected by the Corporation from
licensing or other arrangements relating to commercialization
of products developed through projects funded in whole or part
by grants, contracts, or cooperative agreements executed by the
Corporation;
``(4) proceeds from the sale of assets, loans, and equity
interests made in furtherance of the purposes of the
Corporation;
``(5) donations or contributions accepted by the
Corporation to support authorized programs and activities; and
``(6) any other funds acquired by the Corporation.
``(c) Funding Allocations.--Funding of projects and activities
under this subtitle shall be subject to the following restrictions:
``(1) Of the total amount of funds made available for a
fiscal year under this subtitle--
``(A) not more than the lesser of 15 percent or
$3,000,000 may be set aside to be used for authorized
administrative expenses of the Corporation in carrying
out the functions of the Corporation;
``(B) not more than 1 percent may be set aside to
be used for generic studies and specific reviews of
individual proposals for financial assistance; and
``(C) except as provided in subsection (e), not
less than 84 percent shall be set aside to be awarded
to qualified applicants who file project applications
with, or respond to requests for proposals from, the
Corporation under sections 1660 and 1661.
``(2) Any funds remaining uncommitted at the end of a
fiscal year shall be credited to the Fund and added to the
total program funds available to the Corporation for the next
fiscal year.
``(d) Authorized Administrative Expenses.--For the purposes of this
section, authorized administrative expenses shall include all ordinary
and necessary expenses, including all compensation for personnel and
consultants, expenses for computer usage, or space needs of the
Corporation and similar expenses. Funds authorized for administrative
expenses shall not be available for the acquisition of real property.
``(e) Project Monitoring.--The Board may establish, in the bylaws
of the Board, a percent of funds provided under subsection (c), not to
exceed 1 percent per project award, for any commercialization project
to be expended from project awards that shall be used to ensure that
project funds are being utilized in accordance with the project
agreement.
``(f) Termination of the Fund.--On expiration of the authority
provided by this subtitle, all assets (after payment of all outstanding
obligations) of the Fund shall revert to the general fund of the
Treasury.
``(g) Authorization of Appropriations; Capitalization.--
``(1) Authorization of appropriation.--There are authorized
to be appropriated to the Fund $75,000,000 for each of fiscal
years 1996 through 2002.
``(2) Capitalization.--The Executive Director may pay as
capital of the Corporation, from amounts made available through
annual appropriations, $75,000,000 for each of fiscal years
1996 through 2002. On the payment of capital by the Executive
Director, the Corporation shall issue an equivalent amount of
capital stock to the Secretary of the Treasury.
``(3) Transfer.--All obligations, assets, and related
rights and responsibilities of the Alternative Agricultural
Research and Commercialization Center established under section
1658 of the Food, Agriculture, Conservation, and Trade Act of
1990 (7 U.S.C. 5902) (as in effect on the day before the
effective date of the Agricultural Reform and Improvement Act
of 1996) are transferred to the Corporation.''.
SEC. 729. PROCUREMENT PREFERENCES FOR PRODUCTS RECEIVING CORPORATION
ASSISTANCE.
Subtitle G of title XVI of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 5901 et seq.) is amended by adding at the
end the following:
``SEC. 1665. PROCUREMENT OF ALTERNATIVE AGRICULTURAL RESEARCH AND
COMMERCIALIZATION PRODUCTS.
``(a) Definition of Executive Agency.--In this section, the term
`executive agency' has the meaning provided the term in section 4(1) of
the Office of Federal Procurement Policy Act (41 U.S.C. 403(1)).
``(b) Procurement.--To further the achievement of the purposes
specified in section 1657(b), an executive agency may, for any
procurement involving the acquisition of property, establish set-asides
and preferences for property that has been commercialized with
assistance provided under this subtitle.
``(c) Set-Asides.--Procurements solely for property may be set-
aside exclusively for products developed with commercialization
assistance provided under section 1661.
``(d) Preferences.--Preferences for property developed with
assistance provided under this subtitle in procurements involving the
acquisition of property may be--
``(1) a price preference, if the procurement is solely for
property, of not greater than a percentage to be determined
within the sole discretion of the head of the procuring agency;
or
``(2) a technical evaluation preference included as an
award factor or subfactor as determined within the sole
discretion of the head of the procuring agency.
``(e) Notice.--Each competitive solicitation or invitation for bids
selected by an executive agency for a set-aside or preference under
this section shall contain a provision notifying offerors where a list
of products eligible for the set aside or preference may be obtained.
``(f) Eligibility.--Offerors shall receive the set aside or
preference required under this section if, in the case of products
developed with financial assistance under--
``(1) section 1660, less than 10 years have elapsed since
the expiration of the grant, cooperative agreement, or
contract;
``(2) paragraph (1) or (2) of section 1661(a), less than 5
years have elapsed since the date the loan was made or insured;
``(3) section 1661(a)(3), less than 5 years have elapsed
since the date of sale of any remaining government equity
interest in the company; or
``(4) section 1661(a)(4), less than 5 years have elapsed
since the date of the final payment on the repayable grant.''.
SEC. 730. BUSINESS PLAN AND FEASIBILITY STUDY AND REPORT.
(a) Business Plan.--Not later than 180 days after the date of
enactment of this Act, the Alternative Agricultural Research and
Commercialization Corporation established under section 1658 of the
Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5902)
shall--
(1) develop a 5-year business plan pursuant to section
1659(c)(1)(E) of the Food, Agriculture, Conservation, and Trade
Act of 1990 (as amended by section 723); and
(2) submit the plan to the Secretary of Agriculture, the
Committee on Agriculture of the House of Representatives, and
the Committee on Agriculture, Nutrition, and Forestry of the
Senate.
(b) Feasibility Study and Report.--
(1) Study.--The Secretary of Agriculture shall conduct a
study of and prepare a report on the continued feasibility of
the Alternative Agricultural Research and Commercialization
Corporation. In conducting the study, the Secretary shall
examine options for privatizing the Corporation and converting
the Corporation to a Government sponsored enterprise.
(2) Report.--Not later than December 31, 2001, the
Secretary shall transmit the report to the Committee on
Agriculture of the House of Representatives and the Committee
on Agriculture, Nutrition, and Forestry of the Senate.
Subtitle B--Amendments to the Consolidated Farm and Rural Development
Act
CHAPTER 1--GENERAL PROVISIONS
SEC. 741. WATER AND WASTE FACILITY LOANS AND GRANTS.
(a) In General.--Section 306(a) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1926(a)) is amended--
(1) in the first sentence of paragraph (2), by striking
``$500,000,000'' and inserting ``$590,000,000'';
(2) by striking paragraph (7) and inserting the following:
``(7) Definition of rural and rural areas.--For the purpose
of water and waste disposal grants and direct and guaranteed
loans provided under paragraphs (1) and (2), the terms `rural'
and `rural area' shall mean a city, town, or unincorporated
area that has a population of no more than 10,000
inhabitants.'';
(3) by striking paragraphs (9), (10), and (11) and
inserting the following:
``(9) Conformity with state drinking water standards.--No
Federal funds shall be made available under this section unless
the Secretary determines that the water system seeking funding
will make significant progress toward meeting the standards
established under title XIV of the Public Health Service Act
(commonly known as the `Safe Drinking Water Act') (42 U.S.C.
300f et seq.).
``(10) Conformity with federal and state water pollution
control standards.--In the case of a water treatment discharge
or waste disposal system seeking funding, no Federal funds
shall be made available under this section unless the Secretary
determines that the effluent from the system conforms with
applicable Federal and State water pollution control standards.
``(11) Rural business opportunity grants.--
``(A) In general.--The Secretary may make grants,
not to exceed $1,500,000 annually, to public bodies,
private nonprofit community development corporations or
entities, or such other agencies as the Secretary may
select to enable the recipients--
``(i) to identify and analyze business
opportunities, including opportunities in
export markets, that will use local rural
economic and human resources;
``(ii) to identify, train, and provide
technical assistance to existing or prospective
rural entrepreneurs and managers;
``(iii) to establish business support
centers and otherwise assist in the creation of
new rural businesses, the development of
methods of financing local businesses, and the
enhancement of the capacity of local
individuals and entities to engage in sound
economic activities;
``(iv) to conduct regional, community, and
local economic development planning and
coordination, and leadership development; and
``(v) to establish centers for training,
technology, and trade that will provide
training to rural businesses in the utilization
of interactive communications technologies to
develop international trade opportunities and
markets.
``(B) Criteria.--In awarding the grants, the
Secretary shall consider, among other criteria to be
established by the Secretary--
``(i) the extent to which the applicant
provides development services in the rural
service area of the applicant; and
``(ii) the capability of the applicant to
carry out the purposes of this section.
``(C) Coordination.--The Secretary shall ensure, to
the maximum extent practicable, that assistance
provided under this paragraph is coordinated with and
delivered in cooperation with similar services or
assistance provided to rural residents by the
Cooperative State Research, Education, and Extension
Service or other Federal agencies.
``(D) Authorization of appropriations.--There are
authorized to be appropriated to carry out this
paragraph $7,500,000 for each of fiscal years 1996
through 2002.'';
(4) by striking paragraphs (14) and (15); and
(5) in paragraph (16)--
(A) by striking ``(16)(A) The'' and inserting the
following:
``(16) Rural water and wastewater technical assistance and
training programs.--
``(A) In general.--The'';
(B) in subparagraph (A)--
(i) by striking ``(i) identify'' and
inserting the following:
``(i) identify'';
(ii) by striking ``(ii) prepare'' and
inserting the following:
``(ii) prepare''; and
(iii) by striking ``(iii) improve'' and
inserting the following:
``(iii) improve'';
(C) in subparagraph (B), by striking ``(B) In'' and
inserting the following:
``(B) Selection priority.--In''; and
(D) in subparagraph (C)--
(i) by striking ``(C) Not'' and inserting
the following:
``(C) Funding.--Not''; and
(ii) by striking ``2 per centum of any
funds provided in Appropriations Acts'' and
inserting ``3 percent of any funds
appropriated''.
(b) Conforming Amendments.--
(1) Section 307(a)(6)(B) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1927(a)(6)(B)) (as amended by section
651(a)(2)) is further amended--
(A) by striking clause (ii); and
(B) by redesignating clauses (iii) and (iv) as
clauses (ii) and (iii), respectively.
(2) The second sentence of section 309A(a) of the
Consolidated Farm and Rural Development Act (7 U.S.C. 1929a(a))
is amended by striking ``, 306(a)(14),''.
SEC. 742. EMERGENCY COMMUNITY WATER ASSISTANCE GRANT PROGRAM FOR SMALL
COMMUNITIES.
Section 306A of the Consolidated Farm and Rural Development Act (7
U.S.C. 1926a) is amended--
(1) in subsection (e)--
(A) by striking paragraph (1) and inserting the
following:
``(1) Maximum income.--No grant provided under this section
may be used to assist any rural area or community that has a
median household income in excess of the State nonmetropolitan
median household income according to the most recent decennial
census of the United States.''; and
(B) in paragraph (2), by striking ``5,000'' and
inserting ``3,000''; and
(2) by striking subsection (i) and inserting the following:
``(i) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section $35,000,000 for each of fiscal
years 1996 through 2002.''.
SEC. 743. EMERGENCY COMMUNITY WATER ASSISTANCE GRANT PROGRAM FOR
SMALLEST COMMUNITIES.
Section 306B of the Consolidated Farm and Rural Development Act (7
U.S.C. 1926b) is repealed.
SEC. 744. AGRICULTURAL CREDIT INSURANCE FUND.
Section 309(f) of the Consolidated Farm and Rural Development Act
(7 U.S.C. 1929(f)) is amended--
(1) by striking paragraph (1); and
(2) by redesignating paragraphs (2) through (6) as
paragraphs (1) through (5), respectively.
SEC. 745. RURAL DEVELOPMENT INSURANCE FUND.
Section 309A(g) of the Consolidated Farm and Rural Development Act
(7 U.S.C. 1929a(g)) is amended--
(1) by striking paragraph (1); and
(2) by redesignating paragraphs (2) through (8) as
paragraphs (1) through (7), respectively.
SEC. 746. INSURED WATERSHED AND RESOURCE CONSERVATION AND DEVELOPMENT
LOANS.
Section 310A of the Consolidated Farm and Rural Development Act (7
U.S.C. 1931) is repealed.
SEC. 747. RURAL INDUSTRIALIZATION ASSISTANCE.
(a) In General.--Section 310B of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1932) is amended--
(1) in subsection (b), by striking ``(b)(1)'' and all that
follows through ``(2) The'' and inserting the following:
``(b) Solid Waste Management Grants.--The'';
(2) in subsection (c)--
(A) by striking ``(c)(1) The'' and inserting the
following:
``(c) Rural Business Enterprise Grants.--
``(1) In general.--The'';
(B) in paragraph (1), by inserting ``(including
nonprofit entities)'' after ``private business
enterprises''; and
(C) in paragraph (2)--
(i) by striking ``(2) The'' and inserting
the following:
``(2) Passenger transportation services or facilities.--
The''; and
(ii) by striking ``make grants'' and
inserting ``award grants on a competitive
basis''; and
(3) by striking subsections (e), (g), (h), and (i);
(4) by redesignating subsections (f) and (j) as subsections
(e) and (f), respectively;
(5) by striking subsection (e) (as so redesignated) and
inserting the following:
``(e) Rural Cooperative Development Grants.--
``(1) Definitions.--In this subsection:
``(A) Nonprofit institution.--The term `nonprofit
institution' means any organization or institution,
including an accredited institution of higher
education, no part of the net earnings of which inures,
or may lawfully inure, to the benefit of any private
shareholder or individual.
``(B) United states.--The term `United States'
means the several States, the District of Columbia, the
Commonwealth of Puerto Rico, the Virgin Islands, Guam,
American Samoa, and the other territories and
possessions of the United States.
``(2) Grants.--The Secretary shall make grants under this
subsection to nonprofit institutions for the purpose of
enabling the institutions to establish and operate centers for
rural cooperative development.
``(3) Goals.--The goals of a center funded under this
subsection shall be to facilitate the creation of jobs in rural
areas through the development of new rural cooperatives, value
added processing, and rural businesses.
``(4) Application.--Any nonprofit institution seeking a
grant under paragraph (2) shall submit to the Secretary an
application containing a plan for the establishment and
operation by the institution of a center or centers for
cooperative development. The Secretary may approve the
application if the plan contains the following:
``(A) A provision that substantiates that the
center will effectively serve rural areas in the United
States.
``(B) A provision that the primary objective of the
center will be to improve the economic condition of
rural areas through cooperative development.
``(C) A description of the activities that the
center will carry out to accomplish the objective. The
activities may include the following:
``(i) Programs for applied research and
feasibility studies that may be useful to
individuals, cooperatives, small businesses,
and other similar entities in rural areas
served by the center.
``(ii) Programs for the collection,
interpretation, and dissemination of
information that may be useful to individuals,
cooperatives, small businesses, and other
similar entities in rural areas served by the
center.
``(iii) Programs providing training and
instruction for individuals, cooperatives,
small businesses, and other similar entities in
rural areas served by the center.
``(iv) Programs providing loans and grants
to individuals, cooperatives, small businesses,
and other similar entities in rural areas
served by the center.
``(v) Programs providing technical
assistance, research services, and advisory
services to individuals, cooperatives, small
businesses, and other similar entities in rural
areas served by the center.
``(vi) Programs providing for the
coordination of services and sharing of
information among the center.
``(D) A description of the contributions that the
activities are likely to make to the improvement of the
economic conditions of the rural areas for which the
center will provide services.
``(E) Provisions that the center, in carrying out
the activities, will seek, where appropriate, the
advice, participation, expertise, and assistance of
representatives of business, industry, educational
institutions, the Federal Government, and State and
local governments.
``(F) Provisions that the center will take all
practicable steps to develop continuing sources of
financial support for the center, particularly from
sources in the private sector.
``(G) Provisions for--
``(i) monitoring and evaluating the
activities by the nonprofit institution
operating the center; and
``(ii) accounting for money received by the
institution under this section.
``(5) Awarding grants.--Grants made under paragraph (2)
shall be made on a competitive basis. In making grants under
paragraph (2), the Secretary shall give preference to grant
applications providing for the establishment of centers for
rural cooperative development that--
``(A) demonstrate a proven track record in
administering a nationally coordinated, regionally or
State-wide operated project;
``(B) demonstrate previous expertise in providing
technical assistance in rural areas;
``(C) demonstrate the ability to assist in the
retention of existing businesses, facilitate the
establishment of new cooperatives and new cooperative
approaches, and generate new employment opportunities
that will improve the economic conditions of rural
areas;
``(D) demonstrate the ability to create horizontal
linkages among businesses within and among various
sectors in rural America and vertical linkages to
domestic and international markets;
``(E) commit to providing technical assistance and
other services to underserved and economically
distressed areas in rural America; and
``(F) commit to providing greater than a 25 percent
matching contribution with private funds and in-kind
contributions.
``(6) Two-year grants.--The Secretary shall evaluate
programs receiving assistance under this subsection and, if the
Secretary determines it to be in the best interest of the
Federal Government, the Secretary may approve grants under this
subsection for up to 2 years.
``(7) Technical assistance to prevent excessive
unemployment or underemployment.--In carrying out this
subsection, the Secretary may provide technical assistance to
alleviate or prevent conditions of excessive unemployment,
underemployment, outmigration, or low employment growth in
economically distressed rural areas that the Secretary
determines have a substantial need for the assistance. The
assistance may include planning and feasibility studies,
management and operational assistance, and studies evaluating
the need for development potential of projects that increase
employment and improve economic growth in the areas.
``(8) Grants to defray administrative costs.--The Secretary
may make grants to defray not to exceed 75 percent of the costs
incurred by organizations and public bodies to carry out
projects for which grants or loans are made under this
subsection. For purposes of determining the non-Federal share
of the costs, the Secretary shall consider contributions in
cash and in kind, fairly evaluated, including premises,
equipment, and services.
``(9) Authorization of appropriations.--There are
authorized to be appropriated to carry out this subsection
$50,000,000 for each of fiscal years 1996 through 2002.''; and
(6) by adding at the end the following:
``(g) Loan Guarantees for the Purchase of Cooperative Stock.--
``(1) Definition of farmer.--In this subsection, the term
`farmer' means any farmer that meets the family farmer
definition, as determined by the Secretary.
``(2) Loan guarantees.--The Secretary may guarantee loans
under this section to individual farmers for the purpose of
purchasing capital stock of a farmer cooperative established
for the purpose of processing an agricultural commodity.
``(3) Eligibility.--To be eligible for a loan guarantee
under this subsection, a farmer must produce the agricultural
commodity that will be processed by the cooperative.
``(4) Collateral.--To be eligible for a loan guarantee
under this subsection for the establishment of a cooperative,
the borrower of the loan must pledge collateral to secure at
least 25 percent of the amount of the loan.''.
(b) Conforming Amendments.--
(1) Clause (iii) of section 307(a)(6)(B) of the
Consolidated Farm and Rural Development Act (7 U.S.C.
1927(a)(6)(B)) (as redesignated by section 741(b)(1)(B)) is
amended by striking ``subsections (d) and (e) of section 310B''
and inserting ``section 310B(d)''.
(2) Section 232(c)(2) of the Department of Agriculture
Reorganization Act of 1994 (7 U.S.C. 6942(c)(2)) is amended--
(A) by striking ``310B(b)(2)'' and inserting
``310B(b)''; and
(B) by striking ``1932(b)(2)'' and inserting
``1932(b)''.
(3) Section 233(b) of the Department of Agriculture
Reorganization Act of 1994 (7 U.S.C. 6943(b)) is amended--
(A) by striking paragraph (2); and
(B) by redesignating paragraph (3) as paragraph
(2).
SEC. 748. ADMINISTRATION.
Section 331(b)(4) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1981(b)(4)) is amended--
(1) by inserting after ``claims'' the following:
``(including debts and claims arising from loan guarantees)'';
(2) by striking ``Farmers Home Administration or'' and
inserting ``Consolidated Farm Service Agency, Rural Utilities
Service, Rural Housing and Community Development Service, Rural
Business and Cooperative Development Service, or a successor
agency, or''; and
(3) by inserting after ``activities under the Housing Act
of 1949.'' the following: ``In the case of a security
instrument entered into under the Rural Electrification Act of
1936 (7 U.S.C. 901 et seq.), the Secretary shall notify the
Attorney General of the intent of the Secretary to exercise the
authority of the Secretary under this paragraph.''.
SEC. 749. AUTHORIZATION OF APPROPRIATIONS.
(a) In General.--Section 338 of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1988) is amended--
(1) by striking subsections (b), (c), (d), and (e); and
(2) by redesignating subsection (f) as subsection (b).
(b) Conforming Amendments.--
(1) The first sentence of section 309(g)(1) of the
Consolidated Farm and Rural Development Act (7 U.S.C.
1929(g)(1)) is amended by inserting after ``section 338(c)''
the following: ``(before the amendment made by section
447(a)(1) of the Agricultural Reform and Improvement Act of
1996)''.
(2) Section 343(b) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1991(b)) is amended by striking
``338(f),'' and inserting ``338(b),''.
SEC. 750. TESTIMONY BEFORE CONGRESSIONAL COMMITTEES.
Section 345 of the Consolidated Farm and Rural Development Act (7
U.S.C. 1993) is repealed.
SEC. 751. PROHIBITION ON USE OF LOANS FOR CERTAIN PURPOSES.
Section 363 of the Consolidated Farm and Rural Development Act (7
U.S.C. 2006e) is amended by adding at the end the following: ``This
section shall not apply to a loan made or guaranteed under this title
for a utility line.''.
SEC. 752. RURAL DEVELOPMENT CERTIFIED LENDERS PROGRAM.
The Consolidated Farm and Rural Development Act is amended by
inserting after section 363 (7 U.S.C. 2006e) the following:
``SEC. 364. RURAL DEVELOPMENT CERTIFIED LENDERS PROGRAM.
``(a) Certified Lenders Program.--
``(1) In general.--The Secretary may establish a program
under which the Secretary may guarantee a loan for any rural
development program that is made by a lender certified by the
Secretary.
``(2) Certification requirements.--The Secretary may
certify a lender if the lender meets such criteria as the
Secretary may prescribe in regulations, including the ability
of the lender to properly make, service, and liquidate the
guaranteed loans of the lender.
``(3) Condition of certification.--As a condition of
certification, the Secretary may require the lender to
undertake to service the guaranteed loan using standards that
are not less stringent than generally accepted banking
standards concerning loan servicing that are used by prudent
commercial or cooperative lenders.
``(4) Guarantee.--Notwithstanding any other provision of
law, the Secretary may guarantee not more than 80 percent of a
loan made by a certified lender described in paragraph (1), if
the borrower of the loan meets the eligibility requirements and
such other criteria for the loan guarantee that are established
by the Secretary.
``(5) Certifications.--With respect to loans to be
guaranteed, the Secretary may permit a certified lender to make
appropriate certifications (as provided in regulations issued
by the Secretary) --
``(A) relating to issues such as creditworthiness,
repayment ability, adequacy of collateral, and
feasibility of the operation; and
``(B) that the borrower is in compliance with all
requirements of law, including regulations issued by
the Secretary.
``(6) Relationship to other requirements.--This subsection
shall not affect the responsibility of the Secretary to
determine eligibility, review financial information, and
otherwise assess an application.
``(b) Preferred Certified Lenders Program.--
``(1) In general.--The Secretary may establish a preferred
certified lenders program for lenders who establish their--
``(A) knowledge of, and experience under, the
program established under subsection (a);
``(B) knowledge of the regulations concerning the
particular guaranteed loan program; and
``(C) proficiency related to the certified lender
program requirements.
``(2) Additional lending institutions.--The Secretary may
certify any lending institution as a preferred certified lender
if the institution meets such additional criteria as the
Secretary may prescribe by regulation.
``(3) Revocation of designation.--The designation of a
lender as a preferred certified lender shall be revoked if the
Secretary determines that the lender is not adhering to the
rules and regulations applicable to the program or if the loss
experiences of a preferred certified lender are greater than
other preferred certified lenders, except that the suspension
or revocation shall not affect any outstanding guarantee.
``(4) Condition of certification.--As a condition of the
preferred certification, the Secretary shall require the lender
to undertake to service the loan guaranteed by the Secretary
under this subsection using generally accepted banking
standards concerning loan servicing employed by prudent
commercial or cooperative lenders. The Secretary shall, at
least annually, monitor the performance of each preferred
certified lender to ensure that the conditions of the
certification are being met.
``(5) Effect of preferred lender certification.--
Notwithstanding any other provision of law, the Secretary may--
``(A) guarantee not more than 80 percent of any
approved loan made by a preferred certified lender as
described in this subsection, if the borrower meets the
eligibility requirements and such other criteria as may
be applicable to loans guaranteed by the Secretary; and
``(B) permit preferred certified lenders to make
all decisions, with respect to loans to be guaranteed
by the Secretary under this subsection relating to
creditworthiness, the closing, monitoring, collection,
and liquidation of loans, and to accept appropriate
certifications, as provided in regulations issued by
the Secretary, that the borrower is in compliance with
all requirements of law and regulations issued by the
Secretary.''.
SEC. 753. SYSTEM FOR DELIVERY OF CERTAIN RURAL DEVELOPMENT PROGRAMS.
(a) In General.--Section 365 of the Consolidated Farm and Rural
Development Act (7 U.S.C. 2008) is repealed.
(b) Conforming Amendments.--
(1) Section 2310 of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 2007) is amended--
(A) in subsection (a), by striking ``or the program
established in sections 365 and 366 of the Consolidated
Farm and Rural Development Act (as added by chapter 3
of this subtitle)'';
(B) in subsection (b)--
(i) by striking ``States.--'' and all that
follows through ``partnerships.--The'' in
paragraph (1) and inserting ``States.--The'';
and
(ii) by striking paragraph (2);
(C) in subsection (c)--
(i) by striking ``Projects.--'' and all
that follows through ``partnerships.--Chapter''
in paragraph (1) and inserting ``Projects.--
Chapter'';
(ii) by striking ``subsection (b)(1)'' and
inserting ``subsection (b)''; and
(iii) by striking paragraph (2); and
(D) in subsection (d), by striking ``and sections
365, 366, 367, and 368(b) of the Consolidated Farm and
Rural Development Act (as added by chapter 3 of this
subtitle)''.
(2) Section 2375 of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 6613) is amended--
(A) in subsection (e), by striking ``, as defined
in section 365(b)(2) of the Consolidated Farm and Rural
Development Act,''; and
(B) by adding at the end the following:
``(g) Definition of Designated Rural Development Program.--In this
section, the term `designated rural development program' means a
program carried out under section 304(b), 306(a), or 310B(e) of the
Consolidated Farm and Rural Development Act (7 U.S.C. 1924(b), 1926(a),
and 1932(e)), or under section 1323 of the Food Security Act of 1985
(Public Law 99-198; 7 U.S.C. 1932 note), for which funds are available
at any time during the fiscal year under the section.''.
(3) Paragraph (2) of section 233(b) of the Department of
Agriculture Reorganization Act of 1994 (7 U.S.C. 6943(b)) (as
redesignated by section 747(b)(3)(B)) is amended by striking
``sections 365 through 369 of the Consolidated Farm and Rural
Development Act (7 U.S.C. 2008-2008d)'' and inserting ``section
369 of the Consolidated Farm and Rural Development Act (7
U.S.C. 2008d)''.
SEC. 754. STATE RURAL ECONOMIC DEVELOPMENT REVIEW PANEL.
Section 366 of the Consolidated Farm and Rural Development Act (7
U.S.C. 2008a) is repealed.
SEC. 755. LIMITED TRANSFER AUTHORITY OF LOAN AMOUNTS.
Section 367 of the Consolidated Farm and Rural Development Act (7
U.S.C. 2008b) is repealed.
SEC. 756. ALLOCATION AND TRANSFER OF LOAN GUARANTEE AUTHORITY.
Section 368 of the Consolidated Farm and Rural Development Act (7
U.S.C. 2008c) is repealed.
SEC. 757. NATIONAL SHEEP INDUSTRY IMPROVEMENT CENTER.
The Consolidated Farm and Rural Development Act (as amended by
section 641) is amended by adding at the end the following:
``SEC. 375. NATIONAL SHEEP INDUSTRY IMPROVEMENT CENTER.
``(a) Definitions.--In this section:
``(1) Board.--The term `Board' means the Board of Directors
established under subsection (f).
``(2) Center.--The term `Center' means the National Sheep
Industry Improvement Center established under subsection (b).
``(3) Eligible entity.--The term `eligible entity' means an
entity that promotes the betterment of the United States lamb
or wool industry and that is--
``(A) a public, private, or cooperative
organization;
``(B) an association, including a corporation not
operated for profit;
``(C) a federally recognized Indian Tribe; or
``(D) a public or quasi-public agency.
``(4) Fund.--The term `Fund' means the Natural Sheep
Improvement Center Revolving Fund established under subsection
(e).
``(b) Establishment of Center.--The Secretary shall establish a
National Sheep Industry Improvement Center.
``(c) Purposes.--The purposes of the Center shall be to--
``(1) promote strategic development activities and
collaborative efforts by private and State entities to maximize
the impact of Federal assistance to strengthen and enhance the
production and marketing of lamb and wool in the United States;
``(2) optimize the use of available human capital and
resources within the sheep industry;
``(3) provide assistance to meet the needs of the sheep
industry for infrastructure development, business development,
production, resource development, and market and environmental
research;
``(4) advance activities that empower and build the
capacity of the United States sheep industry to design unique
responses to the special needs of the lamb and wool industries
on both a regional and national basis; and
``(5) adopt flexible and innovative approaches to solving
the long-term needs of the United States sheep industry.
``(d) Strategic Plan.--
``(1) In general.--The Center shall submit to the Secretary
an annual strategic plan for the delivery of financial
assistance provided by the Center.
``(2) Requirements.--A strategic plan shall identify--
``(A) goals, methods, and a benchmark for measuring
the success of carrying out the plan and how the plan
relates to the national and regional goals of the
Center;
``(B) the amount and sources of Federal and non-
Federal funds that are available for carrying out the
plan;
``(C) funding priorities;
``(D) selection criteria for funding; and
``(E) a method of distributing funding.
``(e) Revolving Fund.--
``(1) Establishment.--There is established in the Treasury
the Natural Sheep Improvement Center Revolving Fund. The Fund
shall be available to the Center, without fiscal year
limitation, to carry out the authorized programs and activities
of the Center under this section.
``(2) Contents of fund.--There shall be deposited in the
Fund--
``(A) such amounts as may be appropriated,
transferred, or otherwise made available to support
programs and activities of the Center;
``(B) payments received from any source for
products, services, or property furnished in connection
with the activities of the Center;
``(C) fees and royalties collected by the Center
from licensing or other arrangements relating to
commercialization of products developed through
projects funded, in whole or part, by grants,
contracts, or cooperative agreements executed by the
Center;
``(D) proceeds from the sale of assets, loans, and
equity interests made in furtherance of the purposes of
the Center;;
``(E) donations or contributions accepted by the
Center to support authorized programs and activities;
and
``(F) any other funds acquired by the Center.
``(3) Use of fund.--
``(A) In general.--The Center may use amounts in
the Fund to make grants and loans to eligible entities
in accordance with a strategic plan submitted under
subsection (d).
``(B) Continued existence.--The Center shall manage
the Fund in a manner that ensures that sufficient
amounts are available in the Fund to carry out
subsection (c).
``(C) Diverse area.--The Center shall, to the
maximum extent practicable, use the Fund to serve broad
geographic areas and regions of diverse production.
``(D) Variety of loans and grants.--The Center
shall, to the maximum extent practicable, use the Fund
to provide a variety of intermediate- and long-term
grants and loans.
``(E) Administration.--The Center may not use more
than 3 percent of the amounts in the Fund for a fiscal
year for the administration of the Center.
``(F) Influencing legislation.--None of the amounts
in the Fund may be used to influence legislation.
``(G) Accounting.--To be eligible to receive
amounts from the Fund, an entity must agree to account
for the amounts using generally accepted accounting
principles.
``(H) Uses of fund.--The Center may use amounts in
the Fund to--
``(i) participate with Federal and State
agencies in financing activities that are in
accordance with a strategic plan submitted
under subsection (d), including participation
with several States in a regional effort;
``(ii) participate with other public and
private funding sources in financing activities
that are in accordance with the strategic plan,
including participation in a regional effort;
``(iii) provide security for, or make
principle or interest payments on, revenue or
general obligation bonds issued by a State, if
the proceeds from the sale of the bonds are
deposited in the Fund;
``(iv) accrue interest;
``(v) guarantee or purchase insurance for
local obligations to improve credit market
access or reduce interest rates for a project
that is in accordance with the strategic plan;
or
``(vi) sell assets, loans, and equity
interests acquired in connection with the
financing of projects funded by the Center.
``(4) Loans.--
``(A) Rate.--A loan from the Fund may be made at an
interest rate that is below the market rate or may be
interest free.
``(B) Term.--The term of a loan may not exceed the
shorter of--
``(i) the useful life of the activity
financed; or
``(ii) 40 years.
``(C) Source of repayment.--The Center may not make
a loan from the Fund unless the recipient establishes
an assured source of repayment.
``(D) Proceeds.--All payments of principal and
interest on a loan made from the Fund shall be
deposited into the Fund.
``(5) Maintenance of effort.--The Center shall use the Fund
only to supplement and not to supplant Federal, State, and
private funds expended for rural development.
``(6) Funding.--
``(A) Deposit of funds.--All Federal and non-
Federal amounts received by the Center to carry out
this section shall be deposited in the Fund.
``(B) Mandatory funds.--Out of any moneys in the
Treasury not otherwise appropriated, the Secretary of
the Treasury shall provide to the Center not to exceed
$20,000,000 to carry out this section.
``(C) Additional funds.--In addition to any funds
provided under subparagraph (B), there is authorized to
be appropriated to carry out this section $30,000,000
to carry out this section.
``(D) Privatization.--Federal funds shall not be
used to carry out this section beginning on the earlier
of--
``(i) the date that is 10 years after the
effective date of this section; or
``(ii) the day after a total of $50,000,000
is made available under subparagraphs (B) and
(C) to carry out this section.
``(f) Board of Directors.--
``(1) In general.--The management of the Center shall be
vested in a Board of Directors.
``(2) Powers.--The Board shall--
``(A) be responsible for the general supervision of
the Center;
``(B) review any grant, loan, contract, or
cooperative agreement to be made or entered into by the
Center and any financial assistance provided to the
Center;
``(C) make the final decision, by majority vote, on
whether and how to provide assistance to an applicant;
and
``(D) develop and establish a budget plan and a
long-term operating plan to carry out the goals of the
Center.
``(3) Composition.--The Board shall be composed of--
``(A) 7 voting members, of whom--
``(i) 4 members shall be active producers
of sheep in the United States;
``(ii) 2 members shall have expertise in
finance and management; and
``(iii) 1 member shall have expertise in
lamb and wool marketing; and
``(B) 2 nonvoting members, of whom--
``(i) 1 member shall be the Under Secretary
of Agriculture for Rural Economic and Community
Development; and
``(ii) 1 member shall be the Under
Secretary of Agriculture for Research,
Education, and Economics.
``(4) Election.--A voting member of the Board shall be
chosen in an election of the members of a national organization
selected by the Secretary that--
``(A) consists only of sheep producers in the
United States; and
``(B) has as the primary interest of the
organization the production of lamb and wool in the
United States.
``(5) Term of office.--
``(A) In general.--Subject to subparagraph (B), the
term of office of a voting member of the Board shall be
3 years.
``(B) Staggered initial terms.--The initial voting
members of the Board (other than the chairperson of the
initially established Board) shall serve for staggered
terms of 1, 2, and 3 years, as determined by the
Secretary.
``(C) Reelection.--A voting member may be reelected
for not more than 1 additional term.
``(6) Vacancy.--
``(A) In general.--A vacancy on the Board shall be
filled in the same manner as the original Board.
``(B) Reelection.--A member elected to fill a
vacancy for an unexpired term may be reelected for 1
full term.
``(7) Chairperson.--
``(A) In general.--The Board shall select a
chairperson from among the voting members of the Board.
``(B) Term.--The term of office of the chairperson
shall be 2 years.
``(8) Annual meeting.--
``(A) In general.--The Board shall meet not less
than once each fiscal year at the call of the
chairperson or at the request of the executive director
appointed under subsection (g)(1).
``(B) Location.--The location of a meeting of the
Board shall be established by the Board.
``(9) Voting.--
``(A) Quorum.--A quorum of the Board shall consist
of a majority of the voting members.
``(B) Majority vote.--A decision of the Board shall
be made by a majority of the voting members of the
Board.
``(10) Conflicts of interest.--
``(A) In general.--A member of the Board shall not
vote on any matter respecting any application,
contract, claim, or other particular matter pending
before the Board in which, to the knowledge of the
member, an interest is held by--
``(i) the member;
``(ii) any spouse of the member;
``(iii) any child of the member;
``(iv) any partner of the member;
``(v) any organization in which the member
is serving as an officer, director, trustee,
partner, or employee; or
``(vi) any person with whom the member is
negotiating or has any arrangement concerning
prospective employment or with whom the member
has a financial interest.
``(B) Removal.--Any action by a member of the Board
that violates subparagraph (A) shall be cause for
removal from the Board.
``(C) Validity of action.--An action by a member of
the Board that violates subparagraph (A) shall not
impair or otherwise affect the validity of any
otherwise lawful action by the Board.
``(D) Disclosure.--
``(i) In general.--If a member of the Board
makes a full disclosure of an interest and,
prior to any participation by the member, the
Board determines, by majority vote, that the
interest is too remote or too inconsequential
to affect the integrity of any participation by
the member, the member may participate in the
matter relating to the interest.
``(ii) Vote.--A member that discloses an
interest under clause (i) shall not vote on a
determination of whether the member may
participate in the matter relating to the
interest.
``(E) Remands.--
``(i) In general.--The Secretary may vacate
and remand to the Board for reconsideration any
decision made pursuant to subsection (e)(3)(H)
if the Secretary determines that there has been
a violation of this paragraph or any conflict
of interest provision of the bylaws of the
Board with respect to the decision.
``(ii) Reasons.--In the case of any
violation and remand of a funding decision to
the Board under clause (i), the Secretary shall
inform the Board of the reasons for the remand.
``(11) Compensation.--
``(A) In general.--A member of the Board shall not
receive any compensation by reason of service on the
Board.
``(B) Expenses.--A member of the Board shall be
reimbursed for travel, subsistence, and other necessary
expenses incurred by the member in the performance of a
duty of the member.
``(12) Bylaws.--The Board shall adopt, and may from time to
time amend, any bylaw that is necessary for the proper
management and functioning of the Center.
``(13) Public hearings.--Not later than 1 year after the
effective date of this section, the Board shall hold public
hearings on policy objectives of the program established under
this section.
``(14) Organizational system.--The Board shall provide a
system of organization to fix responsibility and promote
efficiency in carrying out the functions of the Board.
``(15) Use of department of agriculture.--The Board may,
with the consent of the Secretary, utilize the facilities of
and the services of employees of the Department of Agriculture,
without cost to the Center.
``(g) Officers and employees.--
``(1) Executive director.--
``(A) In general.--The Board shall appoint an
executive director to be the chief executive officer of
the Center.
``(B) Tenure.--The executive director shall serve
at the pleasure of the Board.
``(C) Compensation.--Compensation for the executive
director shall be established by the Board.
``(2) Other officers and employees.--The Board may select
and appoint officers, attorneys, employees, and agents who
shall be vested with such powers and duties as the Board may
determine.
``(3) Delegation.--The Board may, by resolution, delegate
to the chairperson, the executive director, or any other
officer or employee any function, power, or duty of the Board
other than voting on a grant, loan, contract, agreement,
budget, or annual strategic plan.
``(h) Consultation.--To carry out this section, the Board may
consult with--
``(1) State departments of agriculture;
``(2) Federal departments and agencies;
``(3) nonprofit development corporations;
``(4) colleges and universities;
``(5) banking and other credit-related agencies;
``(6) agriculture and agribusiness organizations; and
``(7) regional planning and development organizations.
``(i) Oversight.--
``(1) In general.--The Secretary shall review and monitor
compliance by the Board and the Center with this section.
``(2) Sanctions.--If, following notice and opportunity for
a hearing, the Secretary finds that the Board or the Center is
not in compliance with this section, the Secretary may--
``(A) cease making deposits to the Fund;
``(B) suspend the authority of the Center to
withdraw funds from the Fund; or
``(C) impose other appropriate sanctions, including
recoupment of money improperly expended for purposes
prohibited or not authorized by this Act and
disqualification from receipt of financial assistance
under this section.
``(3) Removing sanctions.--The Secretary shall remove
sanctions imposed under paragraph (2) on a finding that there
is no longer any failure by the Board or the Center to comply
with this section or that the noncompliance shall be promptly
corrected.''.
CHAPTER 2--RURAL COMMUNITY ADVANCEMENT PROGRAM
SEC. 761. RURAL COMMUNITY ADVANCEMENT PROGRAM.
The Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et
seq.) is amended by adding at the end the following:
``Subtitle E--Rural Community Advancement Program
``SEC. 381A. DEFINITIONS.
``In this subtitle:
``(1) Rural and rural area.--The terms `rural' and `rural
area' mean, subject to section 306(a)(7), a city, town, or
unincorporated area that has a population of 50,000 inhabitants
or less, other than an urbanized area immediately adjacent to a
city, town, or unincorporated area that has a population in
excess of 50,000 inhabitants.
``(2) State.--The term `State' means each of the 50 States,
the District of Columbia, the Commonwealth of Puerto Rico,
Guam, the Virgin Islands of the United States, American Samoa,
the Commonwealth of the Northern Mariana Islands, the Trust
Territory of the Pacific Islands, and the Federated States of
Micronesia.
``SEC. 381B. ESTABLISHMENT.
``The Secretary shall establish a rural community advancement
program to provide grants, loans, loan guarantees, and other assistance
to meet the rural development needs of local communities in States and
federally recognized Indian tribes.
``SEC. 381C. NATIONAL OBJECTIVES.
``The national objectives of the program established under this
subtitle shall be to--
``(1) promote strategic development activities and
collaborative efforts by State and local communities, and
federally recognized Indian tribes, to maximize the impact of
Federal assistance;
``(2) optimize the use of resources;
``(3) provide assistance in a manner that reflects the
complexity of rural needs, including the needs for business
development, health care, education, infrastructure, cultural
resources, the environment, and housing;
``(4) advance activities that empower, and build the
capacity of, State and local communities to design unique
responses to the special needs of the State and local
communities, and federally recognized Indian tribes, for rural
development assistance; and
``(5) adopt flexible and innovative approaches to solving
rural development problems.
``SEC. 381D. STRATEGIC PLANS.
``(a) In General.--The Secretary shall direct each of the Directors
of Rural Economic and Community Development State Offices to prepare a
strategic plan for each State for the delivery of assistance under this
subtitle within the State.
``(b) Assistance.--
``(1) In general.--Financial assistance for rural
development allocated for a State under this subtitle shall be
used only for orderly community development that is consistent
with the strategic plan of the State.
``(2) Rural area.--Assistance under this subtitle may only
be provided in a rural area.
``(3) Small communities.--In carrying out this subtitle
within a State, the Secretary shall give priority to
communities with the smallest populations and lowest per capita
income.
``(c) Review.--The Secretary shall review the strategic plan of a
State at least once every 5 years.
``(d) Contents.--A strategic plan of a State under this section
shall be a plan that--
``(1) coordinates economic, human, and community
development plans and related activities proposed for an
affected area;
``(2) provides that the State and an affected community
(including local institutions and organizations that have
contributed to the planning process) shall act as full partners
in the process of developing and implementing the plan;
``(3) identifies goals, methods, and benchmarks for
measuring the success of carrying out the plan and how the plan
relates to local or regional ecosystems;
``(4) provides for the involvement, in the preparation of
the plan, of State, local, private, and public persons, State
rural development councils, federally-recognized Indian tribes,
and community-based organizations;
``(5) identifies the amount and source of Federal and non-
Federal resources that are available for carrying out the plan;
and
``(6) includes such other information as may be required by
the Secretary.
``SEC. 381E. ACCOUNTS.
``(a) In General.--Notwithstanding any other provision of law, for
each fiscal year, the Secretary shall consolidate into 3 accounts,
corresponding to the 3 function categories established under subsection
(c), the amounts made available for programs included in each function
category.
``(b) Allocation Within Account.--The Secretary shall allocate the
amounts in each account for such program purposes authorized for the
corresponding function category among the States, as the Secretary may
determine in accordance with this subtitle.
``(c) Function Categories.--For purposes of subsection (a):
``(1) Rural housing and community development.--The rural
housing and community development category shall include funds
made available for--
``(A) community facility direct and guaranteed
loans provided under section 306(a)(1);
``(B) community facility grants provided under
section 306(a)(21); and
``(C) rental housing loans for new housing provided
under section 515 of the Housing Act of 1949 (42 U.S.C.
1485).
``(2) Rural utilities.--The rural utilities category shall
include funds made available for--
``(A) water and waste disposal grants and direct
and guaranteed loans provided under paragraphs (1) and
(2) of section 306(a);
``(B) rural water and wastewater technical
assistance and training grants provided under section
306(a)(16);
``(C) emergency community water assistance grants
provided under section 306A; and
``(D) solid waste management grants provided under
section 310B(b).
``(3) Rural business and cooperative development.--The
rural business and cooperative development category shall
include funds made available for--
``(A) rural business opportunity grants provided
under section 306(a)(11)(A);
``(B) business and industry guaranteed loans
provided under section 310B(a)(1); and
``(C) rural business enterprise grants and rural
educational network grants provided under section
310B(c).
``(d) Other Programs.--Subject to subsection (e), in addition to
any other appropriated amounts, the Secretary may transfer amounts
allocated for a State for any of the 3 function categories for a fiscal
year under subsection (c) to--
``(1) mutual and self-help housing grants provided under
section 523 of the Housing Act of 1949 (42 U.S.C. 1490c);
``(2) rural rental housing loans for existing housing
provided under section 515 of the Housing Act of 1949 (42
U.S.C. 1485);
``(3) rural cooperative development grants provided under
section 310B(e); and
``(4) grants to broadcasting systems provided under section
310B(f).
``(e) Transfer.--
``(1) In general.--Subject to paragraph (2), the Secretary
may transfer within each State up to 25 percent of the total
amount allocated for a State under each function category
referred to in subsection (c) for each fiscal year under this
section to any other function category, or to a program
referred to in subsection (d), but excluding State grants under
section 381G.
``(2) Limitation.--Not more than 10 percent of the total
amount (excluding grants to States under section 381G) made
available for any fiscal year for the programs covered by each
of the 3 function categories referred to in subsection (c), and
the programs referred to in subsection (d), shall be available
for the transfer.
``(f) Availability of Funds.--The Secretary may make available
funds appropriated for the programs referred to in subsection (c) to
defray the cost of any subsidy associated with a guarantee provided
under section 381H, except that not more than 5 percent of the funds
provided under subsection (c) may be made available within a State.
``SEC. 381F. ALLOCATION.
``(a) National Reserve.--The Secretary may use not more than 10
percent of the total amount of funds made available for a fiscal year
under section 381E to establish a national reserve for rural
development that may be used by the Secretary in rural areas during the
fiscal year to--
``(1) meet situations of exceptional need;
``(2) provide incentives to promote or reward superior
performance; or
``(3) carry out performance-oriented demonstration
projects.
``(b) Indian Tribes.--
``(1) Reservation.--The Secretary shall reserve not less
than 3 percent of the total amounts made available for a fiscal
year under section 381E to carry out rural development programs
specified in subsections (c) and (d) of section 381D for
federally recognized Indian tribes.
``(2) Allocation.--The Secretary shall establish a formula
for allocating the reserve and shall administer the reserve
through the appropriate Director of the Rural Economic and
Cooperative Development State office.
``(c) State Allocation.--
``(1) In general.--The Secretary shall allocate among all
the States the amounts made available under section 381E in a
fair, reasonable, and appropriate manner that takes into
consideration rural population, levels of income, unemployment,
and other relevant factors, as determined by the Secretary.
``(2) Minimum allocation.--In making the allocations for
each of fiscal years 1996 through 2002, the Secretary shall
ensure that the percentage allocation for each State is equal
to the percentage of the average of the total funds made
available to carry out the programs referred to in section
381E(c) that were obligated in the State for each of fiscal
years 1993 and 1994.
``SEC. 381G. GRANTS TO STATES.
``(a) In General.--Subject to subsection (c), the Secretary shall
grant to any eligible State from which a request is received for a
fiscal year 5 percent of the amount allocated for the State for the
fiscal year under section 381F(c).
``(b) Eligibility.--To be eligible to receive a grant under this
section, the Secretary shall require that the State maintain the grant
funds received and any non-Federal matching funds to carry out this
subtitle in a separate account, to remain available until expended.
``(c) Matching Funds.--For any fiscal year, if non-Federal matching
funds are provided for a State in an amount that is equal to 200
percent or more of an amount equal to 5 percent of the amount allocated
for the State for the fiscal year under section 381F(c), the Secretary
shall pay to the State the grant provided under this subsection in an
amount equal to 5 percent of the amount allocated for the State for the
fiscal year under section 381F(c).
``(d) Use of Funds.--The Secretary shall require that funds
provided to a State under this section be used in rural areas to
achieve the purposes of the programs referred to in section 381E(c) in
accordance with the strategic plan referred to in section 381D.
``(e) Maintenance of Effort.--The State shall provide assurances
that funds received under this section will be used only to supplement,
not to supplant, the amount of Federal, State, and local funds
otherwise expended for rural development assistance in the State.
``(f) Appeals.--The Secretary shall provide to a State an
opportunity for an appeal of any action taken under this section.
``(g) Administrative Costs.--Federal funds shall not be used for
any administrative costs incurred by a State in carrying out this
subtitle.
``(h) Spending of Funds by State.--
``(1) In general.--Payments to a State from a grant under
this section for a fiscal year shall be obligated by the State
in the fiscal year or in the succeeding fiscal year. A State
shall obligate funds under this section to provide assistance
to rural areas pursuant, to the maximum extent practicable, to
applications received from the rural areas.
``(2) Failure to obligate.--If a State fails to obligate
payments in accordance with paragraph (1), the Secretary shall
make a corresponding reduction in the amount of payments
provided to the State under this section for the subsequent
fiscal year.
``(3) Noncompliance.--
``(A) Review.--The Secretary shall review and
monitor State compliance with this section.
``(B) Penalty.--If the Secretary finds that there
has been misuse of grant funds provided under this
section, or noncompliance with any of the terms and
conditions of a grant, after reasonable notice and
opportunity for a hearing--
``(i) the Secretary shall notify the State
of the finding; and
``(ii) no further payments to the State
shall be made with respect to the programs
funded under this section until the Secretary
is satisfied that there is no longer any
failure to comply or that the noncompliance
will be promptly corrected.
``(C) Other sanctions.--In the case of a finding of
noncompliance made pursuant to subparagraph (B), the
Secretary may, in addition to, or in lieu of, imposing
the sanctions described in subparagraph (B), impose
other appropriate sanctions, including recoupment of
money improperly expended for purposes prohibited or
not authorized by this section and disqualification
from the receipt of financial assistance under this
section.
``(i) No Entitlement to Contract, Grant, or Assistance.--Nothing in
this subtitle--
``(1) entitles any person to assistance or a contract or
grant; or
``(2) limits the right of a State to impose additional
limitations or conditions on assistance or a contract or grant
under this section.
``SEC. 381H. GUARANTEE AND COMMITMENT TO GUARANTEE LOANS.
``(a) Definition of Eligible Public Entity.--In this section, the
term `eligible public entity' means any unit of general local
government.
``(b) Guarantee and Commitment.--The Secretary is authorized, on
such terms and conditions as the Secretary may prescribe, to guarantee
and make commitments to guarantee the notes or other obligations issued
by eligible public entities, or by public agencies designated by the
eligible public entities, for the purposes of financing rural
development assistance activities authorized and funded under section
381G.
``(c) Prerequisites.--No guarantee or commitment to guarantee shall
be made with respect to any note or other obligation if the issuer's
total outstanding notes or obligations guaranteed under this section
(excluding any amount repaid under the contract entered into under
subsection (e)(1)(A)) would exceed an amount equal to 5 times the
amount of the grant approval for the issuer pursuant to section 381G.
``(d) Payment of Principal, Interest, and Costs.--Notwithstanding
any other provision of this subtitle, grants allocated to an issuer
pursuant to this subtitle (including program income derived from the
grants) shall be authorized for use in the payment of principal and
interest due (including such servicing, underwriting, or other costs as
may be specified in regulations of the Secretary) on the notes or other
obligations guaranteed pursuant to this section.
``(e) Repayment Contract; Security.--
``(1) In general.--To ensure the repayment of notes or
other obligations and charges incurred under this section and
as a condition for receiving the guarantees, the Secretary
shall require the issuer to--
``(A) enter into a contract, in a form acceptable
to the Secretary, for repayment of notes or other
obligations guaranteed under this section;
``(B) pledge any grant for which the issuer may
become eligible under this subtitle; and
``(C) furnish, at the discretion of the Secretary,
such other security as may be considered appropriate by
the Secretary in making the guarantees.
``(2) Security.--To assist in ensuring the repayment of
notes or other obligations and charges incurred under this
section, a State shall pledge any grant for which the State may
become eligible under this subtitle as security for notes or
other obligations and charges issued under this section by any
unit of general local government in the State.
``(f) Pledged Grants for Repayments.--Notwithstanding any other
provision of this subtitle, the Secretary is authorized to apply grants
pledged pursuant to paragraphs (1)(B) and (2) of subsection (e) to any
repayments due the United States as a result of the guarantees.
``(g) Outstanding Obligations.--The total amount of outstanding
obligations guaranteed on a cumulative basis by the Secretary pursuant
to subsection (b) shall not at any time exceed such amount as may be
authorized to be appropriated for any fiscal year.
``(h) Purchase of Guaranteed Obligations by Federal Financing
Bank.--Notes or other obligations guaranteed under this section may not
be purchased by the Federal Financing Bank.
``(i) Full Faith and Credit.--The full faith and credit of the
United States is pledged to the payment of all guarantees made under
this section. Any such guarantee made by the Secretary shall be
conclusive evidence of the eligibility of the obligations for the
guarantee with respect to principal and interest. The validity of the
guarantee shall be incontestable in the hands of a holder of the
guaranteed obligations.
``SEC. 381I. LOCAL INVOLVEMENT.
``The Secretary shall require that an applicant for assistance
under this subtitle demonstrate evidence of significant community
support.
``SEC. 381J. STATE-TO-STATE COLLABORATION.
``The Secretary shall permit the establishment of voluntary pooling
arrangements among States, and regional fund-sharing agreements, to
carry out this subtitle.
``SEC. 381K. RURAL VENTURE CAPITAL DEMONSTRATION PROGRAM.
``(a) In General.--The Secretary shall designate up to 10 community
development venture capital organizations to demonstrate the utility of
guarantees to attract increased private investment in rural private
business enterprises.
``(b) Rural Business Investment Pool.--
``(1) Establishment.--To be eligible to participate in the
demonstration program, an organization referred to in
subsection (a) shall establish a rural business private
investment pool (referred to in this subsection as a `pool')
for the purpose of making equity investments in rural private
business enterprises.
``(2) Guarantee.--From funds allocated for the national
reserve under section 381F(a), the Secretary shall guarantee
the funds in a pool against loss, except that the guarantee
shall not exceed an amount equal to 30 percent of the total
funds in the pool.
``(3) Amount.--The Secretary shall issue guarantees
covering not more than $15,000,000 of obligations for each of
fiscal years 1996 through 2002.
``(4) Term.--The term of a guarantee provided under this
subsection shall not exceed 10 years.
``(5) Submission of plan.--To be eligible to participate in
the demonstration program, an organization referred to in
subsection (a) shall submit a plan that describes--
``(A) potential sources and uses of the pool to be
established by the organization;
``(B) the utility of the guarantee authority in
attracting capital for the pool; and
``(C) on selection, mechanisms for notifying State,
local, and private nonprofit business development
organizations and businesses of the existence of the
pool.
``(6) Competition.--
``(A) In general.--The Secretary shall conduct a
competition for the designation and establishment of
pools.
``(B) Priority.--In conducting the competition, the
Secretary shall give priority to organizations that--
``(i) have a demonstrated record of
performance or have a board and executive
director with experience in venture capital,
small business equity investments, or community
development finance;
``(ii) propose to serve low-income
communities;
``(iii) propose to maintain an average
investment of not more than $500,000 from the
pool of the organization;
``(iv) invest funds statewide or in a
multicounty region; and
``(v) propose to target job opportunities
resulting from the investments primarily to
economically disadvantaged individuals.
``(C) Geographic diversity.--To the extent
practicable, the Secretary shall select organizations
in diverse geographic areas.
``SEC. 381L. ANNUAL REPORT.
``(a) In General.--The Secretary, in collaboration with public,
State, local, and private entities, State rural development councils,
and community-based organizations, shall prepare an annual report that
contains evaluations, assessments, and performance outcomes concerning
the rural community advancement programs carried out under this
subtitle.
``(b) Submission.--Not later than March 1 of each year, the
Secretary shall--
``(1) submit the report required under subsection (a) to
Congress and the chief executives of States participating in
the program established under this subtitle; and
``(2) make the report available to State and local
participants.
``SEC. 381M. RURAL DEVELOPMENT INTERAGENCY WORKING GROUP.
``(a) In General.--The Secretary shall provide leadership within
the Executive branch for, and assume responsibility for, establishing
an interagency working group chaired by the Secretary.
``(b) Duties.--The working group shall establish policy, provide
coordination, make recommendations, and evaluate the performance of or
for all Federal rural development efforts.
``SEC. 381N. DUTIES OF RURAL ECONOMIC AND COMMUNITY DEVELOPMENT STATE
OFFICES.
``In carrying out this subtitle, the Director of a Rural Economic
and Community Development State Office shall--
``(1) to the maximum extent practicable, ensure that the
State strategic plan is implemented;
``(2) coordinate community development objectives within
the State;
``(3) establish links between local, State, and field
office program administrators of the Department of Agriculture;
``(4) ensure that recipient communities comply with
applicable Federal and State laws and requirements; and
``(5) integrate State development programs with assistance
under this subtitle.
``SEC. 381O. ELECTRONIC TRANSFER.
``The Secretary shall transfer funds in accordance with this
subtitle through electronic transfer as soon as practicable after the
effective date of this subtitle.''.
SEC. 762. COMMUNITY FACILITIES GRANT PROGRAM.
Section 306(a) of the Consolidated Farm and Rural Development Act
(7 U.S.C. 1926(a)) is amended by adding at the end the following:
``(21) Community facilities grant program.--
``(A) In general.--The Secretary may make grants,
in a total amount not to exceed $10,000,000 for any
fiscal year, to associations, units of general local
government, nonprofit corporations, and federally
recognized Indian tribes to provide the Federal share
of the cost of developing specific essential community
facilities in rural areas.
``(B) Federal share.--
``(i) In general.--Except as provided in
clauses (ii) and (iii), the Secretary shall, by
regulation, establish the amount of the Federal
share of the cost of the facility under this
paragraph.
``(ii) Maximum amount.--The amount of a
grant provided under this paragraph shall not
exceed 75 percent of the cost of developing a
facility.
``(iii) Graduated scale.--The Secretary
shall provide for a graduated scale for the
amount of the Federal share provided under this
paragraph, with higher Federal shares for
facilities in communities that have lower
community population and income levels, as
determined by the Secretary.''.
Subtitle C--Amendments to the Rural Electrification Act of 1936
SEC. 771. PURPOSES; INVESTIGATIONS AND REPORTS.
Section 2 of the Rural Electrification Act of 1936 (7 U.S.C. 902)
is amended--
(1) by striking ``Sec. 2. (a) The Secretary of Agriculture
is'' and inserting the following:
``SEC. 2. GENERAL AUTHORITY OF THE SECRETARY OF AGRICULTURE.
``(a) Loans.--The Secretary of Agriculture (referred to in this Act
as the `Secretary') is'';
(2) in subsection (a)--
(A) by striking ``and the furnishing'' the first
place it appears and all that follows through ``central
station service''; and
(B) by striking ``systems; to make'' and all that
follows through the period at the end of the subsection
and inserting ``systems''; and
(3) by striking subsection (b) and inserting the following:
``(b) Investigations and Reports.--The Secretary may make, or cause
to be made, studies, investigations, and reports regarding matters,
including financial, technological, and regulatory matters, affecting
the condition and progress of electric, telecommunications, and
economic development in rural areas and publish and disseminate
information with respect to the matters.''.
SEC. 772. AUTHORIZATION OF APPROPRIATIONS.
(a) In General.--Section 3 of the Rural Electrification Act of 1936
(7 U.S.C. 903) is amended to read as follows:
``SEC. 3. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated such sums as are
necessary to carry out this Act.''.
(b) Conforming Amendments.--
(1) Section 301(a) of the Rural Electrification Act of 1936
(7 U.S.C. 931(a)) is amended--
(A) by striking ``(a)''; and
(B) in paragraph (3), by striking ``notwithstanding
section 3(a) of title I,''.
(2) Section 302(b)(2) of the Rural Electrification Act of
1936 (7 U.S.C. 932(b)(2)) is amended by striking ``pursuant to
section 3(a) of this Act''.
(3) The last sentence of section 406(a) of the Rural
Electrification Act of 1936 (7 U.S.C. 946(a)) is amended by
striking ``pursuant to section 3(a) of this Act''.
SEC. 773. LOANS FOR ELECTRICAL PLANTS AND TRANSMISSION LINES.
Section 4 of the Rural Electrification Act of 1936 (7 U.S.C. 904)
is amended--
(1) in the first sentence--
(A) by striking ``for the furnishing of'' and all
that follows through ``central station service and'';
and
(B) by striking ``the provisions of sections 3(d)
and 3(e) but without regard to the 25 per centum
limitation therein contained,'' and inserting ``section
3,'';
(2) in the second sentence, by striking ``: Provided
further, That all'' and all that follows through ``loan: And
provided further, That'' and inserting ``, except that''; and
(3) in the third sentence, by striking ``and section 5''.
SEC. 774. LOANS FOR ELECTRICAL AND PLUMBING EQUIPMENT.
(a) In General.--Section 5 of the Rural Electrification Act of 1936
(7 U.S.C. 905) is repealed.
(b) Conforming Amendments.--Section 12(a) of the Rural
Electrification Act of 1936 (7 U.S.C. 912(a)) is amended--
(1) by striking ``: Provided, however, That'' and inserting
``, except that,''; and
(2) by striking ``, and with respect to any loan made under
section 5,'' and all that follows through ``section 3''.
SEC. 775. TESTIMONY ON BUDGET REQUESTS.
Section 6 of the Rural Electrification Act of 1936 (7 U.S.C. 906)
is amended by striking the second sentence.
SEC. 776. TRANSFER OF FUNCTIONS OF ADMINISTRATION CREATED BY EXECUTIVE
ORDER.
Section 8 of the Rural Electrification Act of 1936 (7 U.S.C. 908)
is repealed.
SEC. 777. ANNUAL REPORT.
Section 10 of the Rural Electrification Act of 1936 (7 U.S.C. 910)
is repealed.
SEC. 778. PROHIBITION ON RESTRICTING WATER AND WASTE FACILITY SERVICES
TO ELECTRIC CUSTOMERS.
The Rural Electrification Act of 1936 is amended by inserting after
section 16 (7 U.S.C. 916) the following:
``SEC. 17. PROHIBITION ON RESTRICTING WATER AND WASTE FACILITY SERVICES
TO ELECTRIC CUSTOMERS.
``The Secretary shall establish rules and procedures that prohibit
borrowers under title III or under the Consolidated Farm and Rural
Development Act (7 U.S.C. 1921 et seq.) from conditioning or limiting
access to, or the use of, water and waste facility services financed
under the Consolidated Farm and Rural Development Act if the
conditioning or limiting is based on whether individuals or entities in
the area served or proposed to be served by the facility receive, or
will accept, electric service from the borrower.''.
SEC. 779. TELEPHONE LOAN TERMS AND CONDITIONS.
Section 309 of the Rural Electrification Act of 1936 (7 U.S.C. 939)
is amended--
(1) in subsection (a), by striking ``(a) In General.--'';
and
(2) by striking subsection (b).
SEC. 780. PRIVATIZATION PROGRAM.
Section 311 of the Rural Electrification Act of 1936 (7 U.S.C.
940a) is repealed.
SEC. 781. RURAL BUSINESS INCUBATOR FUND.
(a) In General.--Section 502 of the Rural Electrification Act of
1936 (7 U.S.C. 950aa-1) is repealed.
(b) Conforming Amendments.--Section 501 of the Rural
Electrification Act of 1936 (7 U.S.C. 950aa) is amended--
(1) in paragraph (5), by inserting ``and'' at the end;
(2) in paragraph (6), by striking ``; and'' at the end and
inserting a period; and
(3) by striking paragraph (7).
Subtitle D--Miscellaneous Rural Development Provisions
SEC. 791. INTEREST RATE FORMULA.
(a) Bankhead-Jones Farm Tenant Act.--Section 32(e) of the Bankhead-
Jones Farm Tenant Act (7 U.S.C. 1011) is amended by striking the fifth
sentence and inserting the following: ``A loan under this subsection
shall be made under a contract that provides, under such terms and
conditions as the Secretary considers appropriate, for the repayment of
the loan in not more than 30 years, with interest at a rate not to
exceed the current market yield for outstanding municipal obligations
with remaining periods to maturity comparable to the average maturity
for the loan, adjusted to the nearest \1/8\ of 1 percent.''.
(b) Watershed Protection and Flood Prevention Act.--Section 8 of
the Watershed Protection and Flood Prevention Act (16 U.S.C. 1006a) is
amended by striking the second sentence and inserting the following:
``A loan or advance under this section shall be made under a contract
or agreement that provides, under such terms and conditions as the
Secretary considers appropriate, for the repayment of the loan or
advance in not more than 50 years from the date when the principal
benefits of the works of improvement first become available, with
interest at a rate not to exceed the current market yield for
outstanding municipal obligations with remaining periods to maturity
comparable to the average maturity for the loan, adjusted to the
nearest \1/8\ of 1 percent.''.
SEC. 792. GRANTS FOR FINANCIALLY STRESSED FARMERS, DISLOCATED FARMERS,
AND RURAL FAMILIES.
(a) In General.--Section 502 of the Rural Development Act of 1972
(7 U.S.C. 2662) is amended by striking subsection (f).
(b) Conforming Amendments.--
(1) Section 2389 of the Food, Agriculture, Conservation,
and Trade Act of 1990 (Public Law 101-624; 7 U.S.C. 2662 note)
is amended by striking subsection (d).
(2) Section 503(c) of the Rural Development Act of 1972 (7
U.S.C. 2663(c)) is amended--
(A) in paragraph (1)--
(i) by striking ``(1)'';
(ii) by striking ``section 502(e)'' and all
that follows through ``shall be distributed''
and inserting ``subsections (e), (h), and (i)
of section 502 shall be distributed''; and
(iii) by striking ``objectives of'' and all
that follows through ``title'' and inserting
``objectives of subsections (e), (h), and (i)
of section 502''; and
(B) by striking paragraph (2).
SEC. 793. COOPERATIVE AGREEMENTS.
(a) Section 607(b) of the Rural Development Act of 1972 (7 U.S.C.
2204b(b)) is amended by striking paragraph (4) and inserting the
following:
``(4) Cooperative agreements.--
``(A) In general.--Notwithstanding chapter 63 of
title 31, United States Code, the Secretary may enter
into cooperative agreements with other Federal
agencies, State and local governments, and any other
organization or individual to improve the coordination
and effectiveness of Federal programs, services, and
actions affecting rural areas, including the
establishment and financing of interagency groups, if
the Secretary determines that the objectives of the
agreement will serve the mutual interest of the parties
in rural development activities.
``(B) Cooperators.--Each cooperator, including each
Federal agency, to the extent that funds are otherwise
available, may participate in any cooperative agreement
or working group established pursuant to this paragraph
by contributing funds or other resources to the
Secretary to carry out the agreement or functions of
the group.''.
(b) Notwithstanding any other provision of law, section 343(a) of
the Consolidated Farm and Rural Development Act (7 U.S.C. 1991(a)) is
amended in subparagraph (F)--
(i) by striking ``exceed 15 percent'' and
all that follows through ``Code'' and inserting
the following: ``exceed--
``(i) 25 percent of the median acreage of
the farms or ranches, as the case may be, in
the county in which the farm or ranch
operations of the applicant are located, as
reported in the most recent census of
agriculture taken under section 142 of title
13, United States Code.''.
TITLE VIII--RESEARCH EXTENSION AND EDUCATION
Subtitle A--Amendments to National Agricultural Research, Extension,
and Teaching Policy Act of 1977 and Related Statutes
SEC. 801. PURPOSES OF AGRICULTURAL RESEARCH, EXTENSION, AND EDUCATION.
Section 1402 of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3101) is amended to read as
follows:
``SEC. 1402. PURPOSES OF AGRICULTURAL RESEARCH, EXTENSION, AND
EDUCATION.
``The purposes of federally supported agricultural research,
extension, and education are to--
``(1) enhance the competitiveness of the United States
agriculture and food industry in an increasingly competitive
world environment;
``(2) increase the long-term productivity of the United
States agriculture and food industry while protecting the
natural resource base on which rural America and the United
States agricultural economy depend;
``(3) develop new uses and new products for agricultural
commodities, such as alternative fuels, and develop new crops;
``(4) support agricultural research and extension to
promote economic opportunity in rural communities and to meet
the increasing demand for information and technology transfer
throughout the United States agriculture industry;
``(5) improve risk management in the United States
agriculture industry;
``(6) improve the safe production and processing of, and
adding of value to, United States food and fiber resources
using methods that are environmentally sound;
``(7) support higher education in agriculture to give the
next generation of Americans the knowledge, technology, and
applications necessary to enhance the competitiveness of United
States agriculture; and
``(8) maintain an adequate, nutritious, and safe supply of
food to meet human nutritional needs and requirements.''.
SEC. 802. SUBCOMMITTEE ON FOOD, AGRICULTURAL, AND FORESTRY RESEARCH.
Section 401(h) of the National Science and Technology Policy,
Organization, and Priorities Act of 1976 (42 U.S.C. 6651(h)) is amended
by striking the second through fifth sentences.
SEC. 803. JOINT COUNCIL ON FOOD AND AGRICULTURAL SCIENCES.
(a) In General.--Section 1407 of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3122) is
repealed.
(b) Conforming Amendments.--
(1) Section 1404 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103) is
amended--
(A) by striking paragraph (9); and
(B) by redesignating paragraphs (10) through (18)
as paragraphs (9) through (17), respectively.
(2) Section 1405 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3121) is
amended--
(A) in paragraph (5), by striking ``Joint Council,
Advisory Board,'' and inserting ``Advisory Board''; and
(B) in paragraph (11), by striking ``the Joint
Council,''.
(3) Section 1410(2) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3125(2))
is amended by striking ``the recommendations of the Joint
Council developed under section 1407(f),''.
(4) Section 1412 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3127) is
amended--
(A) in the section heading, by striking ``joint
council, advisory board,'' and inserting ``advisory
board'';
(B) in subsection (a)--
(i) by striking ``Joint Council, the
Advisory Board,'' and inserting ``Advisory
Board'';
(ii) by striking ``the cochairpersons of
the Joint Council and'' each place it appears;
and
(iii) in paragraph (2), by striking ``one
shall serve as the executive secretary to the
Joint Council, one shall serve as the executive
secretary to the Advisory Board,'' and
inserting ``1 shall serve as the executive
secretary to the Advisory Board''; and
(C) in subsections (b) and (c), by striking ``Joint
Council, Advisory Board,'' each place it appears and
inserting ``Advisory Board''.
(5) Section 1413 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3128) is
amended--
(A) in subsection (a), by striking ``Joint Council,
the Advisory Board,'' and inserting ``Advisory Board'';
(B) in subsection (b), by striking ``Joint Council,
Advisory Board,'' and inserting ``Advisory Board''; and
(C) by striking subsection (d).
(6) Section 1434(c) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3196(c))
is amended--
(A) in the second sentence, by striking ``Joint
Council, the Advisory Board,'' and inserting ``Advisory
Board''; and
(B) in the fourth sentence, by striking ``the Joint
Council,''.
SEC. 804. NATIONAL AGRICULTURAL RESEARCH, EXTENSION, EDUCATION, AND
ECONOMICS ADVISORY BOARD.
(a) In General.--Section 1408 of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3123) is
amended to read as follows:
``SEC. 1408. NATIONAL AGRICULTURAL RESEARCH, EXTENSION, EDUCATION, AND
ECONOMICS ADVISORY BOARD.
``(a) Establishment.--The Secretary shall establish within the
Department of Agriculture a board to be known as the `National
Agricultural Research, Extension, Education, and Economics Advisory
Board'.
``(b) Membership.--
``(1) In general.--The Advisory Board shall consist of 25
members, appointed by the Secretary.
``(2) Selection of members.--The Secretary shall appoint
members to the Advisory Board from individuals who are selected
from national farm, commodity, agribusiness, environmental,
consumer, and other organizations directly concerned with
agricultural research, education, and extension programs.
``(3) Representation.--A member of the Advisory Board may
represent 1 or more of the organizations referred to in
paragraph (2), except that 1 member shall be a representative
of the scientific community that is not closely associated with
agriculture. The Secretary shall ensure that the membership of
the Advisory Board includes full-time farmers and ranchers and
represents the interests of the full variety of stakeholders in
the agricultural sector.
``(c) Duties.--The Advisory Board shall--
``(1) review and provide consultation to the Secretary and
land-grant colleges and universities on long-term and short-
term national policies and priorities, as set forth in section
1402, relating to agricultural research, extension, education,
and economics;
``(2) evaluate the results and effectiveness of
agricultural research, extension, education, and economics with
respect to the policies and priorities;
``(3) review and make recommendations to the Under
Secretary of Agriculture for Research, Education, and Economics
on the research, extension, education, and economics portion of
the draft strategic plan required under section 306 of title 5,
United States Code; and
``(4) review the mechanisms of the Department of
Agriculture for technology assessment (which should be
conducted by qualified professionals) for the purposes of--
``(A) performance measurement and evaluation of the
implementation by the Secretary of the strategic plan
required under section 306 of title 5, United States
Code;
``(B) implementation of the national research
policies and priorities set forth in section 1402; and
``(C) the development of mechanisms for the
assessment of emerging public and private agricultural
research and technology transfer initiatives.
``(d) Consultation.--In carrying out this section, the Advisory
Board shall solicit opinions and recommendations from persons who will
benefit from and use federally funded agricultural research, extension,
education, and economics.
``(e) Appointment.--A member of the Advisory Board shall be
appointed by the Secretary for a term of up to 3 years. The members of
the Advisory Board shall be appointed to serve staggered terms.
``(f) Federal Advisory Committee Act.--The Advisory Board shall be
deemed to have filed a charter for the purpose of section 9(c) of the
Federal Advisory Committee Act (5 U.S.C. App.).
``(g) Termination.--The Advisory Board shall remain in existence
until September 30, 2002.''.
(b) Conforming Amendments.--
(1) Section 1404(1) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103(1))
is amended by striking ``National Agricultural Research and
Extension Users Advisory Board'' and inserting ``National
Agricultural Research, Extension, Education, and Economics
Advisory Board''.
(2) Section 1410(2) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3125(2))
is amended by striking ``the recommendations of the Advisory
Board developed under section 1408(g),'' and inserting ``any
recommendations of the Advisory Board''.
(3) The last sentence of section 4(a) of the Renewable
Resources Extension Act of 1978 (16 U.S.C. 1673(a)) is amended
by striking ``National Agricultural Research and Extension
Users Advisory Board'' and inserting ``National Agricultural
Research, Extension, Education, and Economics Advisory Board''.
SEC. 805. AGRICULTURAL SCIENCE AND TECHNOLOGY REVIEW BOARD.
(a) In General.--Section 1408A of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3123a)
is repealed.
(b) Conforming Amendments.--
(1) Section 1404 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103) (as
amended by section 803(b)(1)(B)) is further amended--
(A) in paragraph (15), by adding ``and'' at the
end;
(B) in paragraph (16), by striking ``; and'' and
inserting a period; and
(C) by striking paragraph (17).
(2) Section 1405(12) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3121(12))
is amended by striking ``, after coordination with the
Technology Board,''.
(3) Section 1410(2) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3125(2))
(as amended by section 804(b)(2)) is further amended by
striking ``and the recommendations of the Technology Board
developed under section 1408A(d)''.
(4) Section 1412 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3127) (as
amended by section 803(b)(4)) is further amended--
(A) in the section heading, by striking ``and
technology board'';
(B) in subsection (a)--
(i) by striking ``and the Technology
Board'' each place it appears; and
(ii) in paragraph (2), by striking ``and
one shall serve as the executive secretary to
the Technology Board''; and
(C) in subsections (b) and (c), by striking ``and
Technology Board'' each place it appears.
(5) Section 1413 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3128) (as
amended by section 803(b)(5)) is further amended--
(A) in subsection (a), by striking ``or the
Technology Board''; and
(B) in subsection (b), by striking ``and the
Technology Board''.
SEC. 806. FEDERAL ADVISORY COMMITTEE ACT EXEMPTION FOR FEDERAL-STATE
COOPERATIVE PROGRAMS.
Section 1409A of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3124a) is amended by adding at
the end the following:
``(e) Applicability of Federal Advisory Committee Act.--
``(1) Public meetings.--All meetings of any entity
described in paragraph (2) shall be publicly announced in
advance and shall be open to the public. Detailed minutes of
meetings and other appropriate records of the activities of
such an entity shall be kept and made available to the public
on request.
``(2) Exemption.--The Federal Advisory Committee Act (5
U.S.C. App.) and title XVIII of the Food and Agriculture Act of
1977 (7 U.S.C. 2281 et seq.) shall not apply to any committee,
board, commission, panel, or task force, or similar entity
that--
``(A) is created for the purpose of cooperative
efforts in agricultural research, extension, or
teaching; and
``(B) consists entirely of full-time Federal
employees and individuals who are employed by, or who
are officials of, a State cooperative institution or a
State cooperative agent.''.
SEC. 807. COORDINATION AND PLANNING OF AGRICULTURAL RESEARCH,
EXTENSION, AND EDUCATION.
Subtitle B of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3121 et seq.) is amended by
adding at the end the following:
``SEC. 1413A. ACCOUNTABILITY.
``(a) In General.--The Secretary shall develop and carry out a
system to monitor and evaluate agricultural research and extension
activities conducted or supported by the Federal Government that will
enable the Secretary to measure the impact of research, extension, and
education programs according to priorities, goals, and mandates
established by law.
``(b) Consistency With Other Requirements.--The system shall be
developed and carried out in a manner that is consistent with the
Government Performance and Results Act of 1993 (Public Law 103-62; 107
Stat. 285) and amendments made by the Act.
``SEC. 1413B. IMMINENT OR EMERGING THREATS TO FOOD SAFETY AND ANIMAL
AND PLANT HEALTH.
``In the case of any activities of an agency of the Department of
Agriculture that relate to food safety, animal or plant health,
research, education, or technology transfer, the Secretary may transfer
up to 5 percent of any amounts made available to the agency for a
fiscal year to an agency of the Department of Agriculture reporting to
the Under Secretary of Agriculture for Research, Education, and
Economics for the purpose of addressing imminent or emerging threats to
food safety and animal and plant health.
``SEC. 1413C. FEDERAL ADVISORY COMMITTEE ACT EXEMPTION FOR COMPETITIVE
RESEARCH, EXTENSION, AND EDUCATION PROGRAMS.
``The Federal Advisory Committee Act (5 U.S.C. App.) and title
XVIII of the Food and Agriculture Act of 1977 (7 U.S.C. 2281 et seq.)
shall not apply to any committee, board, commission, panel, or task
force, or similar entity, created solely for the purpose of reviewing
applications or proposals requesting funding under any competitive
research, extension, or education program carried out by the
Secretary.''.
SEC. 808. GRANTS AND FELLOWSHIPS FOR FOOD AND AGRICULTURAL SCIENCES
EDUCATION.
(a) In General.--Section 1417 of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3152) is
amended--
(1) in subsection (b)--
(A) by inserting before ``for a period'' the
following: ``or to research foundations maintained by
the colleges and universities,''; and
(B) by striking paragraph (4) and inserting the
following:
``(4) to design and implement food and agricultural
programs to build teaching and research capacity at primarily
minority institutions;'';
(2) by redesignating subsections (h) and (i) as subsections
(i) and (j), respectively;
(3) by inserting after subsection (g) the following:
``(h) Secondary Education and 2-year Postsecondary Education
Teaching Programs.--
``(1) Agriscience and agribusiness education.--The
Secretary shall--
``(A) promote and strengthen secondary education
and 2-year postsecondary education in agriscience and
agribusiness in order to help ensure the existence in
the United States of a qualified workforce to serve the
food and agricultural sciences system; and
``(B) promote complementary and synergistic
linkages among secondary, 2-year postsecondary, and
higher education programs in the food and agricultural
sciences in order to promote excellence in education
and encourage more young Americans to pursue and
complete a baccalaureate or higher degree in the food
and agricultural sciences.
``(2) Grants.--The Secretary may make competitive or
noncompetitive grants, for grant periods not to exceed 5 years,
to public secondary education institutions, 2-year community
colleges, and junior colleges that have made a commitment to
teaching agriscience and agribusiness--
``(A) to enhance curricula in agricultural
education;
``(B) to increase faculty teaching competencies;
``(C) to interest young people in pursuing a higher
education in order to prepare for scientific and
professional careers in the food and agricultural
sciences;
``(D) to promote the incorporation of agriscience
and agribusiness subject matter into other
instructional programs, particularly classes in
science, business, and consumer education;
``(E) to facilitate joint initiatives among other
secondary or 2-year postsecondary institutions and with
4-year colleges and universities to maximize the
development and use of resources such as faculty,
facilities, and equipment to improve agriscience and
agribusiness education; and
``(F) to support other initiatives designed to meet
local, State, regional, or national needs related to
promoting excellence in agriscience and agribusiness
education.''; and
(4) in subsection (j) (as so redesignated), by striking
``1995'' and inserting ``2002''.
(b) Transfer of Functions and Duties Pertaining to the Future
Farmers of America.--
(1) In general.--There are transferred to the Secretary of
Agriculture all the functions and duties of the Secretary of
Education under the Act entitled ``An Act to incorporate the
Future Farmers of America, and for other purposes'', approved
August 30, 1950 (36 U.S.C. 271 et seq.).
(2) Personnel and unexpended balances.--There are
transferred to the Department of Agriculture all personnel and
balances of unexpended appropriations available for carrying
out the duties and functions transferred under paragraph (1).
(3) Amendments.--The Act entitled ``An Act to incorporate
the Future Farmers of America, and for other purposes'',
approved August 30, 1950, is amended--
(A) in section 7(c) (36 U.S.C. 277(c)) by striking
``Secretary of Education, the executive secretary shall
be a member of the Department of Education'' and
inserting ``Secretary of Agriculture, the executive
secretary shall be an officer or employee of the
Department of Agriculture'';
(B) in section 8(a) (36 U.S.C. 278(a))--
(i) by striking ``Secretary of Education''
and inserting ``Secretary of Agriculture''; and
(ii) by striking ``Department of
Education'' and inserting ``Department of
Agriculture''; and
(C) in section 18 (36 U.S.C. 288)--
(i) by striking ``Secretary of Education''
each place it appears and inserting ``Secretary
of Agriculture''; and
(ii) by striking ``Department of
Education'' each place it appears and inserting
``Department of Agriculture''.
SEC. 809. GRANTS FOR RESEARCH ON THE PRODUCTION AND MARKETING OF
ALCOHOLS AND INDUSTRIAL HYDROCARBONS FROM AGRICULTURAL
COMMODITIES AND FOREST PRODUCTS.
Section 1419(d) of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3154(d)) is amended by
striking ``1995'' and inserting ``2002''.
SEC. 810. POLICY RESEARCH CENTERS.
The National Agricultural Research, Extension, and Teaching Policy
Act of 1977 (as amended by section 809) is further amended by inserting
after section 1418 (7 U.S.C. 3153) the following:
``SEC. 1419. POLICY RESEARCH CENTERS.
``(a) In General.--Consistent with this section, the Secretary may
make grants, competitive grants, and special research grants to, and
enter into cooperative agreements and other contracting instruments
with, policy research centers to conduct research and education
programs that are objective, operationally independent, and external to
the Federal Government and that concern the effect of public policies
on--
``(1) the farm and agricultural sectors;
``(2) the environment;
``(3) rural families, households and economies; and
``(4) consumers, food, and nutrition.
``(b) Eligible Recipients.--Except to the extent otherwise
prohibited by law, State agricultural experiment stations, colleges and
universities, other research institutions and organizations, private
organizations, corporations, and individuals shall be eligible to apply
for and receive funding under subsection (a).
``(c) Activities.--Under this section, funding may be provided for
disciplinary and interdisciplinary research and education concerning
activities consistent with this section, including activities that--
``(1) quantify the implications of public policies and
regulations;
``(2) develop theoretical and research methods;
``(3) collect and analyze data for policymakers, analysts,
and individuals; and
``(4) develop programs to train analysts.
``(d) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section for
fiscal years 1996 through 2002.''.
SEC. 811. HUMAN NUTRITION INTERVENTION AND HEALTH PROMOTION RESEARCH
PROGRAM.
Section 1424 of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3174) is amended to read as
follows:
``SEC. 1424. HUMAN NUTRITION INTERVENTION AND HEALTH PROMOTION RESEARCH
PROGRAM.
``(a) Authority of Secretary.--
``(1) In general.--The Secretary may establish, and award
grants for projects for, a multi-year research initiative on
human nutrition intervention and health promotion.
``(2) Emphasis of initiative.--In administering human
nutrition research projects under this section, the Secretary
shall give specific emphasis to--
``(A) coordinated longitudinal research assessments
of nutritional status; and
``(B) the implementation of unified, innovative
intervention strategies;
to identify and solve problems of nutritional inadequacy and
contribute to the maintenance of health, well-being,
performance, and productivity of individuals, thereby reducing
the need of the individuals to use the health care system and
social programs of the United States.
``(b) Administration of Funds.--The Administrator of the
Agricultural Research Service shall administer funds made available to
carry out this section to ensure a coordinated approach to health and
nutrition research efforts.
``(c) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section for
fiscal years 1996 through 2002.''.
SEC. 812. FOOD AND NUTRITION EDUCATION PROGRAM.
Section 1425(c)(3) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3175(c)(3)) is
amended by striking ``fiscal year 1995'' and inserting ``each of fiscal
years 1996 through 2002''.
SEC. 813. PURPOSES AND FINDINGS RELATING TO ANIMAL HEALTH AND DISEASE
RESEARCH.
Section 1429 of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3191) is amended to read as
follows:
``SEC. 1429. PURPOSES AND FINDINGS RELATING TO ANIMAL HEALTH AND
DISEASE RESEARCH.
``(a) Purposes.--The purposes of this subtitle are to--
``(1) promote the general welfare through the improved
health and productivity of domestic livestock, poultry, aquatic
animals, and other income-producing animals that are essential
to the food supply of the United States and the welfare of
producers and consumers of animal products;
``(2) improve the health of horses;
``(3) facilitate the effective treatment of, and, to the
extent possible, prevent animal and poultry diseases in both
domesticated and wild animals that, if not controlled, would be
disastrous to the United States livestock and poultry
industries and endanger the food supply of the United States;
``(4) improve methods for the control of organisms and
residues in food products of animal origin that could endanger
the human food supply;
``(5) improve the housing and management of animals to
improve the well-being of livestock production species;
``(6) minimize livestock and poultry losses due to
transportation and handling;
``(7) protect human health through control of animal
diseases transmissible to humans;
``(8) improve methods of controlling the births of
predators and other animals; and
``(9) otherwise promote the general welfare through
expanded programs of research and extension to improve animal
health.
``(b) Findings.--Congress finds that--
``(1) the total animal health and disease research and
extension efforts of State colleges and universities and of the
Federal Government would be more effective if there were close
coordination between the efforts; and
``(2) colleges and universities having accredited schools
or colleges of veterinary medicine and State agricultural
experiment stations that conduct animal health and disease
research are especially vital in training research workers in
animal health and related disciplines.''.
SEC. 814. ANIMAL HEALTH SCIENCE RESEARCH ADVISORY BOARD.
Section 1432 of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3194) is repealed.
SEC. 815. ANIMAL HEALTH AND DISEASE CONTINUING RESEARCH.
Section 1433 of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3195) is amended--
(1) in the first sentence of subsection (a), by striking
``1995'' and inserting ``2002'';
(2) in subsection (b)(2)--
(A) by striking ``domestic livestock and poultry''
each place it appears and inserting ``domestic
livestock, poultry, and commercial aquaculture
species''; and
(B) in the second sentence, by striking ``horses,
and poultry'' and inserting ``horses, poultry, and
commercial aquaculture species'';
(3) in subsection (d), by striking ``domestic livestock and
poultry'' and inserting ``domestic livestock, poultry, and
commercial aquaculture species''; and
(4) in subsection (f), by striking ``domestic livestock and
poultry'' and inserting ``domestic livestock, poultry, and
commercial aquaculture species''.
SEC. 816. ANIMAL HEALTH AND DISEASE NATIONAL OR REGIONAL RESEARCH.
Section 1434 of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3196) is amended--
(1) in subsection (a)--
(A) by inserting ``or national or regional problems
relating to pre-harvest, on-farm food safety, or animal
well-being,'' after ``problems,''; and
(B) by striking ``1995'' and inserting ``2002'';
(2) in subsection (b), by striking ``eligible
institutions'' and inserting ``State agricultural experiment
stations, colleges and universities, other research
institutions and organizations, Federal agencies, private
organizations or corporations, and individuals'';
(3) in subsection (c)--
(A) in the first sentence, by inserting ``, food
safety, and animal well-being'' after ``animal health
and disease''; and
(B) in the fourth sentence--
(i) by redesignating paragraphs (2) and (3)
as paragraphs (4) and (5), respectively; and
(ii) by inserting after paragraph (1) the
following:
``(2) any food safety problem that has a significant pre-
harvest (on-farm) component and is recognized as posing a
significant health hazard to the consuming public;
``(3) issues of animal well-being related to production
methods that will improve the housing and management of animals
to improve the well-being of livestock production species;'';
(4) in the first sentence of subsection (d), by striking
``to eligible institutions''; and
(5) by adding at the end the following:
``(f) Applicability of Federal Advisory Committee Act.--The Federal
Advisory Committee Act (5 U.S.C. App.) and title XVIII of the Food and
Agriculture Act of 1977 (7 U.S.C. 2281 et seq.) shall not apply to a
panel or board created solely for the purpose of reviewing applications
or proposals submitted under this subtitle.''.
SEC. 817. RESIDENT INSTRUCTION PROGRAM AT 1890 LAND-GRANT COLLEGES.
Section 1446 of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3222a) is repealed.
SEC. 818. GRANT PROGRAM TO UPGRADE AGRICULTURAL AND FOOD SCIENCES
FACILITIES AT 1890 LAND-GRANT COLLEGES.
Section 1447(b) of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3222b(b)) is amended by
striking ``$8,000,000 for each of the fiscal years 1991 through 1995''
and inserting ``$15,000,000 for each of fiscal years 1996 through
2002''.
SEC. 819. NATIONAL RESEARCH AND TRAINING CENTENNIAL CENTERS
AUTHORIZATION.
Section 1448 of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3222c) is amended--
(1) in subsection (a)(1), by inserting ``, or fiscal years
1996 through 2002,'' after ``1995''; and
(2) in subsection (f), by striking ``1995'' and inserting
``2002''.
SEC. 820. GRANTS TO STATES FOR INTERNATIONAL TRADE DEVELOPMENT CENTERS.
Section 1458A of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3292) is repealed.
SEC. 821. AGRICULTURAL RESEARCH PROGRAMS.
Section 1463 of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3311) is amended by striking
``1995'' each place it appears and inserting ``2002''.
SEC. 822. EXTENSION EDUCATION.
Section 1464 of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3312) is amended by striking
``fiscal year 1995'' and inserting ``each of fiscal years 1995 through
2002''.
SEC. 823. SUPPLEMENTAL AND ALTERNATIVE CROPS RESEARCH.
Section 1473D of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3319d) is amended--
(1) in subsection (a)--
(A) by striking ``1995'' and inserting ``2002'';
and
(B) by striking ``and pilot'';
(2) in subsection (c)--
(A) in paragraph (2)--
(i) in subparagraph (B), by striking ``at
pilot sites'' through ``the area''; and
(ii) in subparagraph (D)--
(I) by striking ``near such pilot
sites''; and
(II) by striking ``successful pilot
program'' and inserting ``successful
program'';
(B) in paragraph (3)--
(i) by striking ``pilot'';
(ii) in subparagraph (C), by striking
``and'' at the end;
(iii) in subparagraph (D), by striking the
period at the end and inserting a semicolon;
and
(iv) by adding at the end the following:
``(E) to conduct fundamental and applied research related
to the development of new commercial products derived from
natural plant material for industrial, medical, and
agricultural applications; and
``(F) to participate with colleges and universities, other
Federal agencies, and private sector entities in conducting
research described in subparagraph (E).''
SEC. 824. AQUACULTURE ASSISTANCE PROGRAMS.
(a) Reports.--Section 1475 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3322) is amended--
(1) by striking subsection (e); and
(2) by redesignating subsections (f) and (g) as subsections
(e) and (f), respectively.
(b) Aquaculture Research Facilities.--Section 1476(b) of the
National Agricultural Research, Extension, and Teaching Policy Act of
1977 (7 U.S.C. 3323(b)) is amended by striking ``1995'' and inserting
``2002''.
(c) Research and Extension.--Section 1477 of the National
Agricultural Research, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3324) is amended by striking ``1995'' and inserting ``2002''.
SEC. 825. RANGELAND RESEARCH.
(a) Reports.--Section 1481 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3334) is repealed.
(b) Advisory Board.--Section 1482 of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3335) is
repealed.
(c) Authorization of Appropriations.--Section 1483(a) of the
National Agricultural Research, Extension, and Teaching Policy Act of
1977 (7 U.S.C. 3336(a)) is amended by striking ``1995'' and inserting
``2002''.
SEC. 826. TECHNICAL AMENDMENTS.
The table of contents of the Food and Agriculture Act of 1977
(Public Law 95-113; 91 Stat. 913) is amended--
(1) by striking the item relating to section 1402 and
inserting the following:
``Sec. 1402. Purposes of agricultural research, extension, and
education.'';
(2) by striking the items relating to sections 1406, 1407,
1408A, 1432, 1446, 1458A, 1481, and 1482;
(3) by striking the item relating to section 1408 and
inserting the following:
``Sec. 1408. National Agricultural Research, Extension, Education, and
Economics Advisory Board.'';
(4) by striking the item relating to section 1412 and
inserting the following:
``Sec. 1412. Support for the Advisory Board.'';
(5) by adding at the end of the items relating to subtitle
B of title XIV the following:
``Sec. 1413A. Accountability.
``Sec. 1413B. Imminent or emerging threats to food safety and animal
and plant health.
``Sec. 1413C. Federal Advisory Committee Act exemption for competitive
research, extension, and education
programs.'';
(6) by striking the item relating to section 1419 and
inserting the following:
``Sec. 1419. Policy research centers.'';
(7) by striking the item relating to section 1424 and
inserting the following:
``Sec. 1424. Human nutrition intervention and health promotion research
program.'';
and
(8) by striking the item relating to section 1429 and
inserting the following:
``Sec. 1429. Purposes and findings relating to animal health and
disease research.''.
Subtitle B--Amendments to Food, Agriculture, Conservation, and Trade
Act of 1990
SEC. 831. WATER QUALITY RESEARCH, EDUCATION, AND COORDINATION.
(a) In General.--Subtitle G of title XIV of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 5501 et seq.) is
repealed.
(b) Conforming Amendments.--
(1) Section 1627(a)(3) of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 5821(a)(3)) is
amended by striking ``, subtitle G of title XIV,''.
(2) Section 1628 of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5831) is amended by striking
``, subtitle G of title XIV,'' each place it appears in
subsections (a) and (d).
(3) Section 1629 of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5832) is amended by striking
``, subtitle G of title XIV,'' each place it appears in
subsections (f) and (g)(11).
SEC. 832. EDUCATION PROGRAM REGARDING HANDLING OF AGRICULTURAL
CHEMICALS AND AGRICULTURAL CHEMICAL CONTAINERS.
(a) In General.--Section 1499A of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 3125c) is repealed.
(b) Conforming Amendment.--Section 1499(b) of the Food,
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5506(b)) is
amended by striking ``and section 1499A''.
SEC. 833. PROGRAM ADMINISTRATION.
(a) In General.--Section 1622 of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 5812) is amended--
(1) by striking subsections (b), (c), and (d); and
(2) by redesignating subsection (e) as subsection (b).
(b) Conforming Amendments.--
(1) Section 1619(b) of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5801(b)) is amended--
(A) by striking paragraph (7); and
(B) by redesignating paragraphs (8), (9), and (10)
as paragraphs (7), (8), and (9), respectively.
(2) Section 1621(c) of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5811(c)) is amended--
(A) in paragraph (1)--
(i) by striking subparagraph (A); and
(ii) by redesignating subparagraphs (B)
through (E) as subparagraphs (A) through (D),
respectively; and
(B) in paragraph (2)--
(i) by striking subparagraph (A); and
(ii) by redesignating subparagraphs (B)
through (F) as subparagraphs (A) through (E),
respectively.
(3) Section 1622 of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5812) (as amended by subsection
(a)) is further amended--
(A) in subsection (a)--
(i) by striking paragraph (2);
(ii) in paragraph (3), by striking
``subsection (e)'' and inserting ``subsection
(b)''; and
(iii) by redesignating paragraphs (3) and
(4) as paragraphs (2) and (3), respectively;
and
(B) in subsection (b)(2)--
(i) by striking subparagraph (A); and
(ii) by redesignating subparagraphs (B)
through (F) as subparagraphs (A) through (E),
respectively.
(4) Section 1628(b) of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5831(b)) is amended by striking
``Advisory Council, the Soil Conservation Service,'' and
inserting ``Natural Resources Conservation Service''.
SEC. 834. NATIONAL GENETICS RESOURCES PROGRAM.
(a) Functions.--Section 1632(d) of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 5841(d)) is amended by
striking paragraph (4) and inserting the following:
``(4) unless otherwise prohibited by law, have the right to
make available on request, without charge and without regard to
the country from which the request originates, the genetic
material that the program assembles;''.
(b) Authorization of Appropriations.--Section 1635(b) of the Food,
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5844(b)) is
amended by striking ``1995'' and inserting ``2002''.
SEC. 835. NATIONAL AGRICULTURAL WEATHER INFORMATION SYSTEM.
Section 1641(c) of the Food, Agriculture, Conservation, and Trade
Act of 1990 (7 U.S.C. 5855(c)) is amended by striking ``1995'' and
inserting ``2002''.
SEC. 836. RESEARCH REGARDING PRODUCTION, PREPARATION, PROCESSING,
HANDLING, AND STORAGE OF AGRICULTURAL PRODUCTS.
Subtitle E of title XVI of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 5871 et seq.) is repealed.
SEC. 837. PLANT AND ANIMAL PEST AND DISEASE CONTROL PROGRAM.
(a) In General.--Subtitle F of title XVI of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 5881) is repealed.
(b) Conforming Amendments.--
(1) Section 28(b)(2)(A) of the Federal Insecticide,
Fungicide, and Rodenticide Act (7 U.S.C. 136w-3(b)(2)(A)) is
amended by striking ``and the information required by section
1651 of the Food, Agriculture, Conservation, and Trade Act of
1990''.
(2) Section 1627(a)(3) of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 5821(a)(3)) is
amended by striking ``and section 1650''.
(3) Section 1628 of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5831) is amended by striking
``section 1650,'' each place it appears in subsections (a) and
(d).
(4) Section 1629 of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5832) is amended by striking
``section 1650,'' each place it appears in subsections (f) and
(g)(11).
SEC. 838. LIVESTOCK PRODUCT SAFETY AND INSPECTION PROGRAM.
Section 1670(e) of the Food, Agriculture, Conservation, and Trade
Act of 1990 (7 U.S.C. 5923(e)) is amended by striking ``1995'' and
inserting ``2002''.
SEC. 839. PLANT GENOME MAPPING PROGRAM.
Section 1671 of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 5924) is repealed.
SEC. 840. SPECIALIZED RESEARCH PROGRAMS.
Section 1672 of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 5925) is repealed.
SEC. 841. AGRICULTURAL TELECOMMUNICATIONS PROGRAM.
Section 1673(h) of the Food, Agriculture, Conservation, and Trade
Act of 1990 (7 U.S.C. 5926(h)) is amended by striking ``1995'' and
inserting ``2002''.
SEC. 842. NATIONAL CENTERS FOR AGRICULTURAL PRODUCT QUALITY RESEARCH.
Section 1675(g)(1) of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 5928(g)(1)) is amended by striking ``1995''
and inserting ``2002''.
SEC. 843. TURKEY RESEARCH CENTER AUTHORIZATION.
Section 1676 of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 5929) is repealed.
SEC. 844. SPECIAL GRANT TO STUDY CONSTRAINTS ON AGRICULTURAL TRADE.
Section 1678 of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 5931) is repealed.
SEC. 845. PILOT PROJECT TO COORDINATE FOOD AND NUTRITION EDUCATION
PROGRAMS.
Section 1679 of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 5932) is repealed.
SEC. 846. ASSISTIVE TECHNOLOGY PROGRAM FOR FARMERS WITH DISABILITIES.
Section 1680 of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 5933) is amended--
(1) in subsection (a)(6)(B), by striking ``1996'' and
inserting ``2002''; and
(2) in subsection (b)(2), by striking ``1996'' and
inserting ``2002''.
SEC. 847. DEMONSTRATION PROJECTS.
Section 2348 of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 2662a) is repealed.
SEC. 848. NATIONAL RURAL INFORMATION CENTER CLEARINGHOUSE.
Section 2381(e) of the Food, Agriculture, Conservation, and Trade
Act of 1990 (7 U.S.C. 3125b(e)) is amended by striking ``1995'' and
inserting ``2002''.
SEC. 849. GLOBAL CLIMATE CHANGE.
(a) Technical Advisory Committee.--Section 2404 of the Food,
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 6703) is
repealed.
(b) Authorization of Appropriations.--Section 2412 of the Food,
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 6710) is
amended by striking ``1996'' and inserting ``2002''.
SEC. 850. TECHNICAL AMENDMENTS.
The table of contents of the Food, Agriculture, Conservation, and
Trade Act of 1990 (Public Law 101-624; 104 Stat. 3359) is amended by
striking the items relating to subtitle G of title XIV, section 1499A,
subtitles E and F of title XVI, and sections 1671, 1672, 1676, 1678,
1679, 2348, and 2404.
Subtitle C--Miscellaneous Research Provisions
SEC. 861. CRITICAL AGRICULTURAL MATERIALS RESEARCH.
(a) In General.--Section 4 of the Critical Agricultural Materials
Act (7 U.S.C. 178b) is amended--
(1) by striking subsection (g); and
(2) by redesignating subsection (h) as subsection (g).
(b) Authorization of Appropriations.--Section 16(a) of the Critical
Agricultural Materials Act (7 U.S.C. 178n(a)) is amended by striking
``1995'' and inserting ``2002''.
SEC. 862. 1994 INSTITUTIONS.
(a) Land-Grant Status.--The first sentence of section 533(b) of the
Equity in Educational Land-Grant Status Act of 1994 (Public Law 103-
382; 7 U.S.C. 301 note) is amended by striking ``2000'' and inserting
``2002''.
(b) Institutional Capacity Building Grants.--Section 535 of the
Equity in Educational Land-Grant Status Act of 1994 (Public Law 103-
382; 7 U.S.C. 301 note) is amended by striking ``2000'' each place it
appears in subsections (b)(1) and (c) and inserting ``2002''.
SEC. 863. SMITH-LEVER ACT FUNDING FOR 1890 LAND-GRANT COLLEGES,
INCLUDING TUSKEGEE UNIVERSITY AND THE DISTRICT OF
COLUMBIA.
(a) Eligibility for Funds.--Section 3(d) of the Act of May 8, 1914
(commonly known as the ``Smith-Lever Act'') (38 Stat. 373, chapter 79;
7 U.S.C. 343(d)), is amended by adding at the end the following: ``A
college or university eligible to receive funds under the Act of August
30, 1890 (26 Stat. 417, chapter 841; 7 U.S.C. 321 et seq.), including
Tuskegee University, or section 208 of the District of Columbia Public
Postsecondary Education Reorganization Act (Public Law 93-471; 88 Stat.
1428) may apply for and receive directly from the Secretary of
Agriculture--
``(1) amounts made available under this subsection after
September 30, 1995, to carry out programs or initiatives for
which no funds were made available under this subsection for
fiscal year 1995, or any previous fiscal year, as determined by
the Secretary; and
``(2) amounts made available after September 30, 1995, to
carry out programs or initiatives funded under this subsection
prior to that date that are in excess of the highest amount
made available for the programs or initiatives under this
subsection for fiscal year 1995, or any previous fiscal year,
as determined by the Secretary.''.
(b) Conforming Amendments.--
(1) The third sentence of section 1444(a) of the National
Agricultural Research, Extension, and Teaching Policy Act of
1977 (7 U.S.C. 3221(a)) is amended by inserting before the
period at the end the following: ``, except that for the
purpose of this calculation, the total appropriations shall not
include amounts made available after September 30, 1995, under
section 3(d) of the Act of May 8, 1914 (commonly known as the
`Smith-Lever Act') (38 Stat. 373, chapter 79; 7 U.S.C. 343(d)),
to carry out programs or initiatives for which no funds were
made available under section 3(d) of the Act for fiscal year
1995, or any previous fiscal year, as determined by the
Secretary, and shall not include amounts made available after
September 30, 1995, to carry out programs or initiatives funded
under section 3(d) of the Act prior to that date that are in
excess of the highest amount made available for the programs or
initiatives for fiscal year 1995, or any previous fiscal year,
as determined by the Secretary.''.
(2) Section 208(c) of the District of Columbia Public
Postsecondary Education Reorganization Act (Public Law 93-471;
88 Stat. 1428) is amended by adding at the end the following:
``Funds appropriated under this subsection shall be in addition
to any amounts provided to the District of Columbia from--
``(1) amounts made available after September 30, 1995,
under section 3(d) of the Act to carry out programs or
initiatives for which no funds were made available under
section 3(d) of the Act for fiscal year 1995, or any previous
fiscal year, as determined by the Secretary of Agriculture; and
``(2) amounts made available after September 30, 1995, to
carry out programs or initiatives funded under section 3(d) of
the Act prior to the date that are in excess of the highest
amount made available for the programs or initiatives for
fiscal year 1995, or any previous fiscal year, as determined by
the Secretary of Agriculture.''.
SEC. 864. COMMITTEE OF NINE.
Section 3(c)(3) of the Act of March 2, 1887 (Chapter 314; 7 U.S.C.
361c(c)(3)) is amended by striking from ``, and shall be used'' through
the end of the paragraph and inserting a period.
SEC. 865. AGRICULTURAL RESEARCH FACILITIES.
(a) In General.--
(1) Research facilities.--The Research Facilities Act (7
U.S.C. 390 et seq.) is amended to read as follows:
``SECTION 1. SHORT TITLE.
``This Act may be cited as the `Research Facilities Act'.
``SEC. 2. DEFINITIONS.
``In this Act:
``(1) Agricultural research facility.--The term
`agricultural research facility' means a proposed facility for
research in food and agricultural sciences for which Federal
funds are requested by a college, university, or nonprofit
institution to assist in the construction, alteration,
acquisition, modernization, renovation, or remodeling of the
facility.
``(2) Food and agricultural sciences.--The term `food and
agricultural sciences' means--
``(A) agriculture, including soil and water
conservation and use, the use of organic materials to
improve soil tilth and fertility, plant and animal
production and protection, and plant and animal health;
``(B) the processing, distributing, marketing, and
utilization of food and agricultural products;
``(C) forestry, including range management,
production of forest and range products. multiple use
of forest and rangelands, and urban forestry;
``(D) aquaculture (as defined in section 1404(3) of
the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3103(3));
``(E) human nutrition;
``(F) production inputs, such as energy, to improve
productivity; and
``(G) germ plasm collection and preservation.
``(3) Secretary.--The term `Secretary' means the Secretary
of Agriculture.
``SEC. 3. REVIEW PROCESS.
``(a) Submission to Secretary.--Each proposal for an agricultural
research facility shall be submitted to the Secretary for review. The
Secretary shall review the proposals in the order in which the
proposals are received.
``(b) Application Process.--In consultation with the Committee on
Appropriations of the Senate and Committee on Appropriations of the
House of Representatives, the Secretary shall establish an application
process for the submission of proposals for agricultural research
facilities.
``(c) Criteria for Approval.--
``(1) Determination by secretary.--With respect to each
proposal for an agricultural research facility submitted under
subsection (a), the Secretary shall determine whether the
proposal meets the criteria set forth in paragraph (2).
``(2) Criteria.--A proposal for an agricultural research
facility shall meet the following criteria:
``(A) Non-federal share.--The proposal shall
certify the availability of at least a 50 percent non-
Federal share of the cost of the facility. The non-
Federal share shall be paid in cash and may include
funding from private sources or from units of State or
local government.
``(B) Nonduplication of facilities.--The proposal
shall demonstrate how the agricultural research
facility would be complementary to, and not duplicative
of, facilities of colleges, universities, and nonprofit
institutions, and facilities of the Agricultural
Research Service, within the State and region.
``(C) National research priorities.--The proposal
shall demonstrate how the agricultural research
facility would serve--
``(i) 1 or more of the national research
policies and priorities set forth in section
1402 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3101); and
``(ii) regional needs.
``(D) Long-term support.--The proposal shall
demonstrate that the recipient college, university, or
nonprofit institution has the ability and commitment to
support the long-term, ongoing operating costs of--
``(i) the agricultural research facility
after the facility is completed; and
``(ii) each program to be based at the
facility.
``(E) Strategic plan.--After the development of the
strategic plan required by section 4, the proposal
shall demonstrate how the agricultural research
facility reflects the strategic plan for Federal
research facilities.
``(d) Evaluation of Proposals.--Not later than 90 days after
receiving a proposal under subsection (a), the Secretary shall--
``(1) evaluate and assess the merits of the proposal,
including the extent to which the proposal meets the criteria
set forth in subsection (c); and
``(2) report to the Committee on Appropriations of the
Senate and Committee on Appropriations of the House of
Representatives on the results of the evaluation and
assessment.
``SEC. 4. STRATEGIC PLAN FOR FEDERAL RESEARCH FACILITIES.
``(a) In General.--Not later than September 30, 1997, the Secretary
shall develop a comprehensive plan for the development, construction,
modernization, consolidation, and closure of federally supported
agricultural research facilities.
``(b) Factors.--In developing the plan, the Secretary shall
consider--
``(1) the need to increase agricultural productivity and to
enhance the competitiveness of the United States agriculture
and food industry as set forth in section 1402 of the National
Agricultural Research, Extension, and Teaching Policy Act of
1977 (7 U.S.C. 3101); and
``(2) the findings of the National Academy of Sciences with
respect to programmatic and scientific priorities relating to
agriculture.
``(c) Implementation.--The plan shall be developed for
implementation over the 10-fiscal year period beginning with fiscal
year 1998.
``SEC. 5. APPLICABILITY OF FEDERAL ADVISORY COMMITTEE ACT.
``The Federal Advisory Committee Act (5 U.S.C. App) and title XVIII
of the Food and Agriculture Act of 1977 (7 U.S.C. 2281 et. seq) shall
not apply to a panel or board created solely for the purpose of
reviewing applications or proposals submitted under this Act.
``SEC. 6. AUTHORIZATION OF APPROPRIATIONS.
``(a) In General.--Subject to subsection (b), there are authorized
to be appropriated such sums as are necessary for fiscal years 1996
through 2002 for the study, plan, design, structure, and related costs
of agricultural research facilities under this Act.
``(b) Allowable Administrative Costs.--Not more than 3 percent of
the funds made available for any project for an agricultural research
facility shall be available for administration of the project.''.
(2) Application.--
(A) Current projects.--The amendment made by
paragraph (1), other than section 4 of the Research
Facilities Act (as amended by paragraph (1)), shall not
apply to any project for an agricultural research
facility for which funds have been made available for a
feasibility study or for any phase of the project prior
to October 1, 1995.
(B) Strategic Plan.--The strategic plan required by
section 4 of the Act shall apply to all federally
supported agricultural research facilities, including
projects funded prior to the effective date of this
title.
(b) Authorization of Appropriations for Federal Facilities.--
Section 1431 of the National Agricultural Research, Extension, and
Teaching Policy Act Amendments of 1985 (Public Law 99-198; 99 Stat.
1556) is amended--
(1) in subsection (a)--
(A) by striking ``(a)''; and
(B) by striking ``1995'' and inserting ``2002'';
and
(2) by striking subsection (b).
(c) Conforming Amendment.--Section 1463(a) of the National
Agricultural Research, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3311(a)) is amended by striking ``1416,''.
SEC. 866. NATIONAL COMPETITIVE RESEARCH INITIATIVE.
Subsection (b)(10) of the Competitive, Special, and Facilities
Research Grant Act (7 U.S.C. 450i(b)(10)) is amended--
(1) by striking ``of Appropriations.--There'' and inserting
the following: ``and availability of appropriations.--
``(A) In general.--There'';
(2) by striking ``fiscal year 1995'' and inserting ``each
of fiscal years 1995 through 2002'';
(3) by striking ``(A) not'' and inserting the following:
``(i) not'';
(4) by striking ``(B) not'' and inserting the following:
``(ii) not'';
(5) in clause (ii) (as so designated), by striking ``20
percent'' and inserting ``40 percent'';
(6) by striking ``(C) not'' and inserting the following:
``(iii) not'';
(7) by striking ``(D) not'' and inserting the following:
``(iv) not'';
(8) by striking ``(E) not'' and inserting the following:
``(v) not''; and
(9) by adding at the end the following:
``(B) Availability.--Funds made available under
subparagraph (A) shall be available for obligation for
a period of 2 years from the beginning of the fiscal
year for which the funds are made available.''.
SEC. 867. COTTON CROP REPORTS.
The Act of May 3, 1924 (43 Stat. 115, chapter 149; 7 U.S.C. 475),
is repealed.
SEC. 868. RURAL DEVELOPMENT RESEARCH AND EDUCATION.
Section 502 of the Rural Development Act of 1972 (7 U.S.C. 2662) is
amended--
(1) in subsection (a), by inserting after the first
sentence the following: ``The rural development extension
programs shall also promote coordinated and integrated rural
community initiatives that advance and empower capacity
building through leadership development, entrepreneurship,
business development and management training and strategic
planning to increase jobs, income, and quality of life in rural
communities.'';
(2) by striking subsections (g) and (j); and
(3) by redesignating subsections (h) and (i) as subsections
(g) and (h) respectively.
SEC. 869. HUMAN NUTRITION RESEARCH.
Section 1452 of the National Agricultural Research, Extension, and
Teaching Policy Act Amendments of 1985 (Public Law 99-198; 7 U.S.C.
3173 note) is repealed.
SEC. 870. DAIRY GOAT RESEARCH PROGRAM.
Section 1432 of the National Agricultural Research, Extension, and
Teaching Policy Act Amendments of 1981 (Public Law 97-98; 7 U.S.C. 3222
note) is amended--
(1) in subsection (a), by striking ``(a)''; and
(2) by striking subsection (b).
SEC. 871. GRANTS TO UPGRADE 1890 LAND-GRANT COLLEGE EXTENSION
FACILITIES.
(a) In General.--Section 1416 of the Food Security Act of 1985 (7
U.S.C. 3224) is repealed.
(b) Technical Amendment.--The table of contents of the Food
Security Act of 1985 (Public Law 99-198; 99 Stat. 1354) is amended by
striking the item relating to section 1416.
SEC. 872. STUTTGART NATIONAL AQUACULTURE RESEARCH CENTER.
(a) Transfer of Functions to the Secretary of Agriculture.--
(1) Title of public law 85-342.--The title of Public Law
85-342 (16 U.S.C. 778 et seq.) is amended by striking
``Secretary of the Interior'' and inserting ``Secretary of
Agriculture''.
(2) Authorization.--The first section of Public Law 85-342
(16 U.S.C. 778) is amended--
(A) by striking ``Secretary of the Interior'' and
all that follows through ``directed to'' and inserting
``Secretary of Agriculture shall'';
(B) by striking ``station and stations'' and
inserting ``1 or more centers''; and
(C) in paragraph (5), by striking ``Department of
Agriculture'' and inserting ``Secretary of the
Interior''.
(3) Authority.--Section 2 of Public Law 85-342 (16 U.S.C.
778a) is amended by striking ``, the Secretary'' and all that
follows through ``authorized'' and inserting ``, the Secretary
of Agriculture is authorized''.
(4) Assistance.--Section 3 of Public Law 85-342 (16 U.S.C.
778b) is amended--
(A) by striking ``Secretary of the Interior'' and
inserting ``Secretary of Agriculture''; and
(B) by striking ``Department of Agriculture'' and
inserting ``Secretary of the Interior''.
(b) Transfer of Fish Farming Experimental Laboratory to Department
of Agriculture.--
(1) Designation of stuttgart national aquaculture research
center.--
(A) In general.--The Fish Farming Experimental
Laboratory in Stuttgart, Arkansas (including the
facilities in Kelso, Arkansas), shall be known and
designated as the ``Stuttgart National Aquaculture
Research Center''.
(B) References.--Any reference in a law, map,
regulation, document, paper, or other record of the
United States to the laboratory referred to in
subparagraph (A) shall be deemed to be a reference to
the ``Stuttgart National Aquaculture Research Center''.
(2) Transfer of laboratory to the department of
agriculture.--Subject to section 1531 of title 31, United
States Code, not later than 90 days after the effective date of
this title, there are transferred to the Department of
Agriculture--
(A) the personnel employed in connection with the
laboratory referred to in paragraph (1);
(B) the assets, liabilities, contracts, and real
and personal property of the laboratory;
(C) the records of the laboratory; and
(D) the unexpended balance of appropriations,
authorizations, allocations and other funds employed,
held, arising from, available to, or to be made
available in connection with the laboratory.
(3) Nonduplication.--The research center referred to in
paragraph (1)(A) shall be complementary to, and not duplicative
of, facilities of colleges, universities, and nonprofit
institutions, and facilities of the Agricultural Research
Service, within the State and region, as determined by the
Administrator of the Service.
SEC. 873. NATIONAL AQUACULTURE POLICY, PLANNING, AND DEVELOPMENT.
(a) Definitions.--Section 3 of the National Aquaculture Act of 1980
(16 U.S.C. 2802) is amended--
(1) in paragraph (1), by striking ``the propagation'' and
all that follows through the period at the end and inserting
the following: ``the commercially controlled cultivation of
aquatic plants, animals, and microorganisms, but does not
include private for-profit ocean ranching of Pacific salmon in
a State in which the ranching is prohibited by law.'';
(2) in paragraph (3), by striking ``or aquatic plant'' and
inserting ``aquatic plant, or microorganism'';
(3) by redesignating paragraphs (7) through (9) as
paragraphs (8) through (10), respectively; and
(4) by inserting after paragraph (6) the following:
``(7) The term `private aquaculture' means the commercially
controlled cultivation of aquatic plants, animals, and
microorganisms other than cultivation carried out by the
Federal Government, any State or local government, or an Indian
tribe recognized by the Bureau of Indian Affairs.''.
(b) National Aquaculture Development Plan.--Section 4 of the
National Aquaculture Act of 1980 (16 U.S.C. 2803) is amended--
(1) in subsection (c)--
(A) in subparagraph (A), by adding ``and'' at the
end;
(B) in subparagraph (B), by striking ``; and'' and
inserting a period; and
(C) by striking subparagraph (C);
(2) in the second sentence of subsection (d), by striking
``Secretaries determine that'' and inserting ``Secretary, in
consultation with the Secretary of Commerce, the Secretary of
the Interior, and the heads of such other agencies as the
Secretary determines are appropriate, determines that''; and
(3) in subsection (e), by striking ``Secretaries'' and
inserting ``Secretary, in consultation with the Secretary of
Commerce, the Secretary of the Interior, and the heads of such
other agencies as the Secretary determines are appropriate,''.
(c) Functions and Powers of Secretaries.--Section 5(b)(3) of the
National Aquaculture Act of 1980 (16 U.S.C. 2804(b)(3)) is amended by
striking ``Secretaries deem'' and inserting ``Secretary, in
consultation with the Secretary of Commerce, the Secretary of the
Interior, and the heads of such other agencies as the Secretary
determines are appropriate, consider''.
(d) Coordination of National Activities Regarding Aquaculture.--The
first sentence of section 6(a) of the National Aquaculture Act of 1980
(16 U.S.C. 2805(a)) is amended by striking ``(f)'' and inserting
``(e)''.
(e) National Policy for Private Aquaculture.--The National
Aquaculture Act of 1980 (16 U.S.C. 2801 et seq.) is amended--
(1) by redesignating sections 7, 8, 9, 10, and 11 as
sections 8, 9, 10, 11, and 12, respectively; and
(2) by inserting after section 6 (16 U.S.C. 2805) the
following:
``SEC. 7. NATIONAL POLICY FOR PRIVATE AQUACULTURE.
``(a) In General.--In consultation with the Secretary of Commerce
and the Secretary of the Interior, the Secretary shall coordinate and
implement a national policy for private aquaculture in accordance with
this section. In developing the policy, the Secretary may consult with
other agencies and organizations.
``(b) Department of Agriculture Aquaculture Plan.--
``(1) In general.--The Secretary shall develop and
implement a Department of Agriculture Aquaculture Plan
(referred to in this section as the `Department plan') for a
unified aquaculture program of the Department of Agriculture
(referred to in this section as the `Department') to support
the development of private aquaculture.
``(2) Elements of department plan.--The Department plan
shall address--
``(A) programs of individual agencies of the
Department related to aquaculture that are consistent
with Department programs related to other areas of
agriculture, including livestock, crops, products, and
commodities under the jurisdiction of agencies of the
Department;
``(B) the treatment of cultivated aquatic animals
as livestock and cultivated aquatic plants as
agricultural crops; and
``(C) means for effective coordination and
implementation of aquaculture activities and programs
within the Department, including individual agency
commitments of personnel and resources.
``(c) National Aquaculture Information Center.--In carrying out
section 5, the Secretary may maintain and support a National
Aquaculture Information Center at the National Agricultural Library as
a repository for information on national and international aquaculture.
``(d) Treatment of Aquaculture.--The Secretary shall treat--
``(1) private aquaculture as agriculture; and
``(2) commercially cultivated aquatic animals, plants, and
microorganisms, and products of the animals, plants, and
microorganisms, produced by private persons and transported or
moved in standard commodity channels as agricultural livestock,
crops, and commodities.
``(e) Private Aquaculture Policy Coordination, Development, and
Implementation.--
``(1) Responsibility.--The Secretary shall have
responsibility for coordinating, developing, and carrying out
policies and programs for private aquaculture.
``(2) Duties.--The Secretary shall--
``(A) coordinate all intradepartmental functions
and activities relating to private aquaculture; and
``(B) establish procedures for the coordination of
functions, and consultation with, the coordinating
group.
``(f) Liaison With Departments of Commerce and the Interior.--The
Secretary of Commerce and the Secretary of the Interior shall each
designate an officer or employee of the Department of the Secretary to
be the liaison of the Department to the Secretary of Agriculture.''.
(f) Authorization of Appropriations.--Section 11 of the National
Aquaculture Act of 1980 (as redesignated by subsection (e)(1)) is
amended by striking ``the fiscal years 1991, 1992, and 1993'' each
place it appears and inserting ``fiscal years 1991 through 2002''.
SEC. 874. EXPANSION OF AUTHORITIES RELATED TO THE NATIONAL ARBORETUM.
(a) Solicitation of Gifts, Benefits, and Devises.--The first
sentence of section 5 of the Act of March 4, 1927 (89 Stat. 683; 20
U.S.C. 195), is amended by inserting ``solicit,'' after ``authorized
to''.
(b) Concessions, Fees, and Voluntary Services.--The Act of March 4,
1927 (44 Stat. 1422, chapter 505; 20 U.S.C. 191 et seq.), is amended by
adding at the end the following:
``SEC. 6. CONCESSIONS, FEES, AND VOLUNTARY SERVICES.
``(a) In General.--Notwithstanding the Federal Property and
Administrative Services Act of 1949 (40 U.S.C. 471 et seq.) and section
321 of the Act of June 30, 1932 (47 Stat. 412, chapter 314; 40 U.S.C.
303b), the Secretary of Agriculture, in furtherance of the mission of
the National Arboretum, may--
``(1) negotiate agreements granting concessions at the
National Arboretum to nonprofit scientific or educational
organizations the interests of which are complementary to the
mission of the National Arboretum, except that the net proceeds
of the organizations from the concessions shall be used
exclusively for research and educational work for the benefit
of the National Arboretum;
``(2) provide by concession, on such terms as the Secretary
of Agriculture considers appropriate and necessary, for
commercial services for food, drink, and nursery sales, if an
agreement for a permanent concession under this paragraph is
negotiated with a qualified person submitting a proposal after
due consideration of all proposals received after the Secretary
of Agriculture provides reasonable public notice of the intent
of the Secretary to enter into such an agreement;
``(3) dispose of excess property, including excess plants
and fish, in a manner designed to maximize revenue from any
sale of the property, including by way of public auction,
except that this paragraph shall not apply to the free
dissemination of new varieties of seeds and germ plasm in
accordance with section 520 of the Revised Statutes (commonly
known as the `Department of Agriculture Organic Act of 1862')
(7 U.S.C. 2201);
``(4) charge such fees as the Secretary of Agriculture
considers reasonable for temporary use by individuals or groups
of National Arboretum facilities and grounds for any purpose
consistent with the mission of the National Arboretum;
``(5) charge such fees as the Secretary of Agriculture
considers reasonable for the use of the National Arboretum for
commercial photography or cinematography;
``(6) publish, in print and electronically and without
regard to laws relating to printing by the Federal Government,
informational brochures, books, and other publications
concerning the National Arboretum or the collections of the
Arboretum; and
``(7) license use of the National Arboretum name and logo
for public service or commercial uses.
``(b) Use of Funds.--Any funds received or collected by the
Secretary of Agriculture as a result of activities described in
subsection (a) shall be retained in a special fund in the Treasury for
the use and benefit of the National Arboretum as the Secretary of
Agriculture considers appropriate.
``(c) Acceptance of Voluntary Services.--The Secretary of
Agriculture may accept the voluntary services of organizations
described in subsection (a)(1), and the voluntary services of
individuals (including employees of the National Arboretum), for the
benefit of the National Arboretum.''.
SEC. 875. STUDY OF AGRICULTURAL RESEARCH SERVICE.
(a) Study.--The Secretary of Agriculture shall request the National
Academy of Sciences to conduct a study of the role and mission of the
Agricultural Research Service. The study shall--
(1) evaluate the strength of science of the Service and the
relevance of the science to national priorities;
(2) examine how the work of the Service relates to the
capacity of the United States agricultural research, education,
and extension system overall; and
(3) include recommendations, as appropriate.
(b) Report.--Not later than 18 months after the effective date of
this title, the Secretary shall prepare a report that describes the
results of the study conducted under subsection (a) and submit the
report to the Committee on Agriculture of the House of Representatives
and the Committee on Agriculture, Nutrition, and Forestry of the
Senate.
(c) Funding.--The Secretary shall use to carry out this section not
more than $500,000 of funds made available to the Agricultural Research
Service for research.
SEC. 876. LABELING OF DOMESTIC AND IMPORTED LAMB AND MUTTON.
Section 7 of the Federal Meat Inspection Act (21 U.S.C. 607) is
amended by adding at the end the following:
``(f) Lamb and Mutton.--
``(1) Standards.--The Secretary, consistent with United
States international obligations, shall establish standards for
the labeling of sheep carcasses, parts of carcasses, meat, and
meat food products as `lamb' or `mutton'.
``(2) Method.--The standards under paragraph (1) shall be
based on the use of the break or spool joint method to
differentiate lamb from mutton by the degree of calcification
of bone to reflect maturity.''.
SEC. 877. SENSE OF SENATE.
It is the sense of the Senate that the Department of Agriculture
should continue to make methyl bromide alternative research and
extension activities a high priority of the Department: Provided, That
it is the sense of the Senate that the Department of Agriculture, the
Environmental Protection Agency, producer and processor organizations,
environmental organizations, and State agencies continue their dialogue
on the risks and benefits of extending the 2001 phaseout deadline.
TITLE IX--AGRICULTURAL PROMOTION
Subtitle A--Popcorn
SEC. 901. SHORT TITLE.
This subtitle may be cited as the ``Popcorn Promotion, Research,
and Consumer Information Act''.
SEC. 902. FINDINGS AND DECLARATION OF POLICY.
(a) Findings.--Congress finds that--
(1) popcorn is an important food that is a valuable part of
the human diet;
(2) the production and processing of popcorn plays a
significant role in the economy of the United States in that
popcorn is processed by several popcorn processors, distributed
through wholesale and retail outlets, and consumed by millions
of people throughout the United States and foreign countries;
(3) popcorn must be of high quality, readily available,
handled properly, and marketed efficiently to ensure that the
benefits of popcorn are available to the people of the United
States;
(4) the maintenance and expansion of existing markets and
uses and the development of new markets and uses for popcorn
are vital to the welfare of processors and persons concerned
with marketing, using, and producing popcorn for the market, as
well as to the agricultural economy of the United States;
(5) the cooperative development, financing, and
implementation of a coordinated program of popcorn promotion,
research, consumer information, and industry information is
necessary to maintain and expand markets for popcorn; and
(6) popcorn moves in interstate and foreign commerce, and
popcorn that does not move in those channels of commerce
directly burdens or affects interstate commerce in popcorn.
(b) Policy.--It is the policy of Congress that it is in the public
interest to authorize the establishment, through the exercise of the
powers provided in this subtitle, of an orderly procedure for
developing, financing (through adequate assessments on unpopped popcorn
processed domestically), and carrying out an effective, continuous, and
coordinated program of promotion, research, consumer information, and
industry information designed to--
(1) strengthen the position of the popcorn industry in the
marketplace; and
(2) maintain and expand domestic and foreign markets and
uses for popcorn.
(c) Purposes.--The purposes of this subtitle are to--
(1) maintain and expand the markets for all popcorn
products in a manner that--
(A) is not designed to maintain or expand any
individual share of a producer or processor of the
market;
(B) does not compete with or replace individual
advertising or promotion efforts designed to promote
individual brand name or trade name popcorn products;
and
(C) authorizes and funds programs that result in
government speech promoting government objectives; and
(2) establish a nationally coordinated program for popcorn
promotion, research, consumer information, and industry
information.
(d) Statutory Construction.--This subtitle treats processors
equitably. Nothing in this subtitle--
(1) provides for the imposition of a trade barrier to the
entry into the United States of imported popcorn for the
domestic market; or
(2) provides for the control of production or otherwise
limits the right of any individual processor to produce
popcorn.
SEC. 903. DEFINITIONS.
In this subtitle (except as otherwise specifically provided):
(1) Board.--The term ``Board'' means the Popcorn Board
established under section 905(b).
(2) Commerce.--The term ``commerce'' means interstate,
foreign, or intrastate commerce.
(3) Consumer information.--The term ``consumer
information'' means information and programs that will assist
consumers and other persons in making evaluations and decisions
regarding the purchase, preparation, and use of popcorn.
(4) Department.--The term ``Department'' means the
Department of Agriculture.
(5) Industry information.--The term ``industry
information'' means information and programs that will lead to
the development of--
(A) new markets, new marketing strategies, or
increased efficiency for the popcorn industry; or
(B) activities to enhance the image of the popcorn
industry.
(6) Marketing.--The term ``marketing'' means the sale or
other disposition of unpopped popcorn for human consumption in
a channel of commerce, but does not include a sale or
disposition to or between processors.
(7) Order.--The term ``order'' means an order issued under
section 904.
(8) Person.--The term ``person'' means an individual, group
of individuals, partnership, corporation, association, or
cooperative, or any other legal entity.
(9) Popcorn.--The term ``popcorn'' means unpopped popcorn
(Zea Mays L) that is--
(A) commercially grown;
(B) processed in the United States by shelling,
cleaning, or drying; and
(C) introduced into a channel of commerce.
(10) Process.--The term ``process'' means to shell, clean,
dry, and prepare popcorn for the market, but does not include
packaging popcorn for the market without also engaging in
another activity described in this paragraph.
(11) Processor.--The term ``processor'' means a person
engaged in the preparation of unpopped popcorn for the market
who owns or shares the ownership and risk of loss of the
popcorn and who processes and distributes over 4,000,000 pounds
of popcorn in the market per year.
(12) Promotion.--The term ``promotion'' means an action,
including paid advertising, to enhance the image or
desirability of popcorn.
(13) Research.--The term ``research'' means any type of
study to advance the image, desirability, marketability,
production, product development, quality, or nutritional value
of popcorn.
(14) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture.
(15) State.--The term ``State'' means each of the 50 States
and the District of Columbia.
(16) United states.--The term ``United States'' means all
of the States.
SEC. 904. ISSUANCE OF ORDERS.
(a) In General.--To effectuate the policy described in section
902(b), the Secretary, subject to subsection (b), shall issue 1 or more
orders applicable to processors. An order shall be applicable to all
popcorn production and marketing areas in the United States. Not more
than 1 order shall be in effect under this subtitle at any 1 time.
(b) Procedure.--
(1) Proposal or request for issuance.--The Secretary may
propose the issuance of an order, or an association of
processors or any other person that would be affected by an
order may request the issuance of, and submit a proposal for,
an order.
(2) Notice and comment concerning proposed order.--Not
later than 60 days after the receipt of a request and proposal
for an order under paragraph (1), or at such time as the
Secretary determines to propose an order, the Secretary shall
publish a proposed order and give due notice and opportunity
for public comment on the proposed order.
(3) Issuance of order.--After notice and opportunity for
public comment under paragraph (2), the Secretary shall issue
an order, taking into consideration the comments received and
including in the order such provisions as are necessary to
ensure that the order conforms to this subtitle. The order
shall be issued and become effective not later than 150 days
after the date of publication of the proposed order.
(c) Amendments.--The Secretary, as appropriate, may amend an order.
The provisions of this subtitle applicable to an order shall be
applicable to any amendment to an order, except that an amendment to an
order may not require a referendum to become effective.
SEC. 905. REQUIRED TERMS IN ORDERS.
(a) In General.--An order shall contain the terms and conditions
specified in this section.
(b) Establishment and Membership of Popcorn Board.--
(1) In general.--The order shall provide for the
establishment of, and appointment of members to, a Popcorn
Board that shall consist of not fewer than 4 members and not
more than 9 members.
(2) Nominations.--The members of the Board shall be
processors appointed by the Secretary from nominations
submitted by processors in a manner authorized by the
Secretary, subject to paragraph (3). Not more than 1 member may
be appointed to the Board from nominations submitted by any 1
processor.
(3) Geographical diversity.--In making appointments, the
Secretary shall take into account, to the extent practicable,
the geographical distribution of popcorn production throughout
the United States.
(4) Terms.--The term of appointment of each member of the
Board shall be 3 years, except that the members appointed to
the initial Board shall serve, proportionately, for terms of 2,
3, and 4 years, as determined by the Secretary.
(5) Compensation and expenses.--A member of the Board shall
serve without compensation, but shall be reimbursed for the
expenses of the member incurred in the performance of duties
for the Board.
(c) Powers and Duties of Board.--The order shall define the powers
and duties of the Board, which shall include the power and duty--
(1) to administer the order in accordance with the terms
and provisions of the order;
(2) to make regulations to effectuate the terms and
provisions of the order;
(3) to appoint members of the Board to serve on an
executive committee;
(4) to propose, receive, evaluate, and approve budgets,
plans, and projects of promotion, research, consumer
information, and industry information, and to contract with
appropriate persons to implement the plans or projects;
(5) to accept and receive voluntary contributions, gifts,
and market promotion or similar funds;
(6) to invest, pending disbursement under a plan or
project, funds collected through assessments authorized under
subsection (f), only in--
(A) obligations of the United States or an agency
of the United States;
(B) general obligations of a State or a political
subdivision of a State;
(C) an interest-bearing account or certificate of
deposit of a bank that is a member of the Federal
Reserve System; or
(D) obligations fully guaranteed as to principal
and interest by the United States;
(7) to receive, investigate, and report to the Secretary
complaints of violations of the order; and
(8) to recommend to the Secretary amendments to the order.
(d) Plans and Budgets.--
(1) In general.--The order shall provide that the Board
shall submit to the Secretary for approval any plan or project
of promotion, research, consumer information, or industry
information.
(2) Budgets.--The order shall require the Board to submit
to the Secretary for approval budgets on a fiscal year basis of
the anticipated expenses and disbursements of the Board in the
implementation of the order, including projected costs of plans
and projects of promotion, research, consumer information, and
industry information.
(e) Contracts and Agreements.--
(1) In general.--The order shall provide that the Board may
enter into contracts or agreements for the implementation and
carrying out of plans or projects of promotion, research,
consumer information, or industry information, including
contracts with a processor organization, and for the payment of
the cost of the plans or projects with funds collected by the
Board under the order.
(2) Requirements.--A contract or agreement under paragraph
(1) shall provide that--
(A) the contracting party shall develop and submit
to the Board a plan or project, together with a budget
that shows the estimated costs to be incurred for the
plan or project;
(B) the plan or project shall become effective on
the approval of the Secretary; and
(C) the contracting party shall keep accurate
records of each transaction of the party, account for
funds received and expended, make periodic reports to
the Board of activities conducted, and make such other
reports as the Board or the Secretary may require.
(3) Processor organizations.--The order shall provide that
the Board may contract with processor organizations for any
other services. The contract shall include provisions
comparable to the provisions required by paragraph (2).
(f) Assessments.--
(1) Processors.--The order shall provide that each
processor marketing popcorn in the United States or for export
shall, in the manner prescribed in the order, pay assessments
and remit the assessments to the Board.
(2) Direct marketers.--A processor that markets popcorn
produced by the processor directly to consumers shall pay and
remit the assessments on the popcorn directly to the Board in
the manner prescribed in the order.
(3) Rate.--
(A) In general.--The rate of assessment prescribed
in the order shall be a rate established by the Board
but not more than $.08 per hundredweight of popcorn.
(B) Adjustment of rate.--The order shall provide
that the Board, with the approval of the Secretary, may
raise or lower the rate of assessment annually up to a
maximum of $.08 per hundredweight of popcorn.
(4) Use of assessments.--
(A) In general.--Subject to subparagraphs (B) and
(C) and subsection (c)(5), the order shall provide that
the assessments collected shall be used by the Board--
(i) to pay expenses incurred in
implementing and administering the order, with
provision for a reasonable reserve; and
(ii) to cover such administrative costs as
are incurred by the Secretary, except that the
administrative costs incurred by the Secretary
(other than any legal expenses incurred to
defend and enforce the order) that may be
reimbursed by the Board may not exceed 15
percent of the projected annual revenues of the
Board.
(B) Expenditures based on source of assessments.--
In implementing plans and projects of promotion,
research, consumer information, and industry
information, the Board shall expend funds on--
(i) plans and projects for popcorn marketed
in the United States or Canada in proportion to
the amount of assessments collected on
domestically marketed popcorn; and
(ii) plans and projects for exported
popcorn in proportion to the amount of
assessments collected on exported popcorn.
(C) Notification.--If the administrative costs
incurred by the Secretary that are reimbursed by the
Board exceed 10 percent of the projected annual
revenues of the Board, the Secretary shall notify as
soon as practicable the Committee on Agriculture of the
House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate.
(g) Prohibition on Use of Funds.--The order shall prohibit any
funds collected by the Board under the order from being used to
influence government action or policy, other than the use of funds by
the Board for the development and recommendation to the Secretary of
amendments to the order.
(h) Books and Records of the Board.--The order shall require the
Board to--
(1) maintain such books and records (which shall be
available to the Secretary for inspection and audit) as the
Secretary may prescribe;
(2) prepare and submit to the Secretary, from time to time,
such reports as the Secretary may prescribe; and
(3) account for the receipt and disbursement of all funds
entrusted to the Board.
(i) Books and Records of Processors.--
(1) Maintenance and reporting of information.--The order
shall require that each processor of popcorn for the market
shall--
(A) maintain, and make available for inspection,
such books and records as are required by the order;
and
(B) file reports at such time, in such manner, and
having such content as is prescribed in the order.
(2) Use of information.--The Secretary shall authorize the
use of information regarding processors that may be accumulated
under a law or regulation other than this subtitle or a
regulation issued under this subtitle. The information shall be
made available to the Secretary as appropriate for the
administration or enforcement of this subtitle, the order, or
any regulation issued under this subtitle.
(3) Confidentiality.--
(A) In general.--Subject to subparagraphs (B), (C),
and (D), all information obtained by the Secretary
under paragraphs (1) and (2) shall be kept confidential
by all officers, employees, and agents of the Board and
the Department.
(B) Disclosure by secretary.--Information referred
to in subparagraph (A) may be disclosed if--
(i) the Secretary considers the information
relevant;
(ii) the information is revealed in a suit
or administrative hearing brought at the
request of the Secretary, or to which the
Secretary or any officer of the United States
is a party; and
(iii) the information relates to the order.
(C) Disclosure to other agency of federal
government.--
(i) In general.--No information obtained
under the authority of this subtitle may be
made available to another agency or officer of
the Federal Government for any purpose other
than the implementation of this subtitle and
any investigatory or enforcement activity
necessary for the implementation of this
subtitle.
(ii) Penalty.--A person who knowingly
violates this subparagraph shall, on
conviction, be subject to a fine of not more
than $1,000 or to imprisonment for not more
than 1 year, or both, and if an officer,
employee, or agent of the Board or the
Department, shall be removed from office or
terminated from employment, as applicable.
(D) General statements.--Nothing in this paragraph
prohibits--
(i) the issuance of general statements,
based on the reports, of the number of persons
subject to the order or statistical data
collected from the reports, if the statements
do not identify the information provided by any
person; or
(ii) the publication, by direction of the
Secretary, of the name of a person violating
the order, together with a statement of the
particular provisions of the order violated by
the person.
(j) Other Terms and Conditions.--The order shall contain such terms
and conditions, consistent with this subtitle, as are necessary to
effectuate this subtitle, including regulations relating to the
assessment of late payment charges.
SEC. 906. REFERENDA.
(a) Initial Referendum.--
(1) In general.--Within the 60-day period immediately
preceding the effective date of an order, as provided in
section 904(b)(3), the Secretary shall conduct a referendum
among processors who, during a representative period as
determined by the Secretary, have been engaged in processing,
for the purpose of ascertaining whether the order shall go into
effect.
(2) Approval of order.--The order shall become effective,
as provided in section 904(b), only if the Secretary determines
that the order has been approved by not less than a majority of
the processors voting in the referendum and if the majority
processed more than 50 percent of the popcorn certified as
having been processed, during the representative period, by the
processors voting.
(b) Additional Referenda.--
(1) In general.--Not earlier than 3 years after the
effective date of an order approved under subsection (a), on
the request of the Board or a representative group of
processors, as described in paragraph (2), the Secretary may
conduct additional referenda to determine whether processors
favor the termination or suspension of the order.
(2) Representative group of processors.--An additional
referendum on an order shall be conducted if the referendum is
requested by 30 percent or more of the number of processors
who, during a representative period as determined by the
Secretary, have been engaged in processing.
(3) Disapproval of order.--If the Secretary determines, in
a referendum conducted under paragraph (1), that suspension or
termination of the order is favored by at least \2/3\ of the
processors voting in the referendum, the Secretary shall--
(A) suspend or terminate, as appropriate,
collection of assessments under the order not later
than 180 days after the date of determination; and
(B) suspend or terminate the order, as appropriate,
in an orderly manner as soon as practicable after the
date of determination.
(c) Costs of Referendum.--The Secretary shall be reimbursed from
assessments collected by the Board for any expenses incurred by the
Secretary in connection with the conduct of any referendum under this
section.
(d) Method of Conducting Referendum.--Subject to this section, a
referendum conducted under this section shall be conducted in such
manner as is determined by the Secretary.
(e) Confidentiality of Ballots and Other Information.--
(1) In general.--The ballots and other information or
reports that reveal or tend to reveal the vote of any
processor, or any business operation of a processor, shall be
considered to be strictly confidential and shall not be
disclosed.
(2) Penalty for violations.--An officer or employee of the
Department who knowingly violates paragraph (1) shall be
subject to the penalties described in section 905(i)(3)(C)(ii).
SEC. 907. PETITION AND REVIEW.
(a) Petition.--
(1) In general.--A person subject to an order may file with
the Secretary a petition--
(A) stating that the order, a provision of the
order, or an obligation imposed in connection with the
order is not established in accordance with law; and
(B) requesting a modification of the order or
obligation or an exemption from the order or
obligation.
(2) Statute of limitations.--A petition under paragraph (1)
concerning an obligation may be filed not later than 2 years
after the date of imposition of the obligation.
(3) Hearings.--The petitioner shall be given the
opportunity for a hearing on a petition filed under paragraph
(1), in accordance with regulations issued by the Secretary.
(4) Ruling.--After a hearing under paragraph (3), the
Secretary shall issue a ruling on the petition that is the
subject of the hearing, which shall be final if the ruling is
in accordance with applicable law.
(b) Review.--
(1) Commencement of action.--The district court of the
United States for any district in which a person who is a
petitioner under subsection (a) resides or carries on business
shall have jurisdiction to review a ruling on the petition, if
the person files a complaint not later than 20 days after the
date of issuance of the ruling under subsection (a)(4).
(2) Process.--Service of process in a proceeding under
paragraph (1) may be made on the Secretary by delivering a copy
of the complaint to the Secretary.
(3) Remands.--If the court determines, under paragraph (1),
that a ruling issued under subsection (a)(4) is not in
accordance with applicable law, the court shall remand the
matter to the Secretary with directions--
(A) to make such ruling as the court shall
determine to be in accordance with law; or
(B) to take such further proceedings as, in the
opinion of the court, the law requires.
(c) Enforcement.--The pendency of proceedings instituted under
subsection (a) may not impede, hinder, or delay the Secretary or the
Attorney General from taking action under section 908.
SEC. 908. ENFORCEMENT.
(a) In General.--The Secretary may issue an enforcement order to
restrain or prevent any person from violating an order or regulation
issued under this subtitle and may assess a civil penalty of not more
than $1,000 for each violation of the enforcement order, after an
opportunity for an administrative hearing, if the Secretary determines
that the administration and enforcement of the order and this subtitle
would be adequately served by such a procedure.
(b) Jurisdiction.--The district courts of the United States are
vested with jurisdiction specifically to enforce, and to prevent and
restrain any person from violating, an order or regulation issued under
this subtitle.
(c) Referral to Attorney General.--A civil action authorized to be
brought under this section shall be referred to the Attorney General
for appropriate action.
SEC. 909. INVESTIGATIONS AND POWER TO SUBPOENA.
(a) Investigations.--The Secretary may make such investigations as
the Secretary considers necessary--
(1) for the effective administration of this subtitle; and
(2) to determine whether any person subject to this
subtitle has engaged, or is about to engage, in an act that
constitutes or will constitute a violation of this subtitle or
of an order or regulation issued under this subtitle.
(b) Oaths, Affirmations, and Subpoenas.--For the purpose of an
investigation under subsection (a), the Secretary may administer oaths
and affirmations, subpoena witnesses, compel the attendance of
witnesses, take evidence, and require the production of any records
that are relevant to the inquiry. The attendance of witnesses and the
production of records may be required from any place in the United
States.
(c) Aid of Courts.--
(1) Request.--In the case of contumacy by, or refusal to
obey a subpoena issued to, any person, the Secretary may
request the aid of any court of the United States within the
jurisdiction of which the investigation or proceeding is
carried on, or where the person resides or carries on business,
in requiring the attendance and testimony of the person and the
production of records.
(2) Enforcement order of the court.--The court may issue an
enforcement order requiring the person to appear before the
Secretary to produce records or to give testimony concerning
the matter under investigation.
(3) Contempt.--A failure to obey an enforcement order of
the court under paragraph (2) may be punished by the court as a
contempt of the court.
(4) Process.--Process in a case under this subsection may
be served in the judicial district in which the person resides
or conducts business or wherever the person may be found.
SEC. 910. RELATION TO OTHER PROGRAMS.
Nothing in this subtitle preempts or supersedes any other program
relating to popcorn promotion organized and operated under the laws of
the United States or any State.
SEC. 911. REGULATIONS.
The Secretary may issue such regulations as are necessary to carry
out this subtitle.
SEC. 912. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated such sums as are necessary
to carry out this subtitle. Amounts made available under this section
or otherwise made available to the Department, and amounts made
available under any other marketing or promotion order, may not be used
to pay any administrative expense of the Board.
Subtitle B--Canola and Rapeseed
SEC. 921. SHORT TITLE.
This subtitle may be cited as the ``Canola and Rapeseed Research,
Promotion, and Consumer Information Act''.
SEC. 922. FINDINGS AND DECLARATION OF POLICY.
(a) Findings.--Congress finds that--
(1) canola and rapeseed products are an important and
nutritious part of the human diet;
(2) the production of canola and rapeseed products plays a
significant role in the economy of the United States in that
canola and rapeseed products are produced by thousands of
canola and rapeseed producers, processed by numerous processing
entities, and canola and rapeseed products produced in the
United States are consumed by people throughout the United
States and foreign countries;
(3) canola, rapeseed, and canola and rapeseed products
should be readily available and marketed efficiently to ensure
that consumers have an adequate supply of canola and rapeseed
products at a reasonable price;
(4) the maintenance and expansion of existing markets and
development of new markets for canola, rapeseed, and canola and
rapeseed products are vital to the welfare of canola and
rapeseed producers and processors and those persons concerned
with marketing canola, rapeseed, and canola and rapeseed
products, as well as to the general economy of the United
States, and are necessary to ensure the ready availability and
efficient marketing of canola, rapeseed, and canola and
rapeseed products;
(5) there exist established State and national
organizations conducting canola and rapeseed research,
promotion, and consumer education programs that are valuable to
the efforts of promoting the consumption of canola, rapeseed,
and canola and rapeseed products;
(6) the cooperative development, financing, and
implementation of a coordinated national program of canola and
rapeseed research, promotion, consumer information, and
industry information is necessary to maintain and expand
existing markets and develop new markets for canola, rapeseed,
and canola and rapeseed products; and
(7) canola, rapeseed, and canola and rapeseed products move
in interstate and foreign commerce, and canola, rapeseed, and
canola and rapeseed products that do not move in interstate or
foreign commerce directly burden or affect interstate commerce
in canola, rapeseed, and canola and rapeseed products.
(b) Policy.--It is the policy of this subtitle to establish an
orderly procedure for developing, financing through assessments on
domestically-produced canola and rapeseed, and implementing a program
of research, promotion, consumer information, and industry information
designed to strengthen the position in the marketplace of the canola
and rapeseed industry, to maintain and expand existing domestic and
foreign markets and uses for canola, rapeseed, and canola and rapeseed
products, and to develop new markets and uses for canola, rapeseed, and
canola and rapeseed products.
(c) Construction.--Nothing in this subtitle provides for the
control of production or otherwise limits the right of individual
producers to produce canola, rapeseed, or canola or rapeseed products.
SEC. 923. DEFINITIONS.
In this subtitle (unless the context otherwise requires):
(1) Board.--The term ``Board'' means the National Canola
and Rapeseed Board established under section 925(b).
(2) Canola; rapeseed.--The terms ``canola'' and
``rapeseed'' means any brassica plant grown in the United
States for the production of an oilseed, the oil of which is
used for a food or nonfood use.
(3) Canola or rapeseed products.--The term ``canola or
rapeseed products'' means products produced, in whole or in
part, from canola or rapeseed.
(4) Commerce.--The term ``commerce'' includes interstate,
foreign, and intrastate commerce.
(5) Conflict of interest.--The term ``conflict of
interest'' means a situation in which a member of the Board has
a direct or indirect financial interest in a corporation,
partnership, sole proprietorship, joint venture, or other
business entity dealing directly or indirectly with the Board.
(6) Consumer information.--The term ``consumer
information'' means information that will assist consumers and
other persons in making evaluations and decisions regarding the
purchase, preparation, and use of canola, rapeseed, or canola
or rapeseed products.
(7) Department.--The term ``Department'' means the
Department of Agriculture.
(8) First purchaser.--The term ``first purchaser'' means--
(A) except as provided in subparagraph (B), a
person buying or otherwise acquiring canola, rapeseed,
or canola or rapeseed products produced by a producer;
or
(B) the Commodity Credit Corporation, in a case in
which canola or rapeseed is forfeited to the Commodity
Credit Corporation as collateral for a loan issued
under a price support loan program administered by the
Commodity Credit Corporation.
(9) Industry information.--The term ``industry
information'' means information or programs that will lead to
the development of new markets, new marketing strategies, or
increased efficiency for the canola and rapeseed industry, or
an activity to enhance the image of the canola or rapeseed
industry.
(10) Industry member.--The term ``industry member'' means a
member of the canola and rapeseed industry who represents--
(A) manufacturers of canola or rapeseed products;
or
(B) persons who commercially buy or sell canola or
rapeseed.
(11) Marketing.--The term ``marketing'' means the sale or
other disposition of canola, rapeseed, or canola or rapeseed
products in a channel of commerce.
(12) Order.--The term ``order'' means an order issued under
section 924.
(13) Person.--The term ``person'' means an individual,
partnership, corporation, association, cooperative, or any
other legal entity.
(14) Producer.--The term ``producer'' means a person
engaged in the growing of canola or rapeseed in the United
States who owns, or who shares the ownership and risk of loss
of, the canola or rapeseed.
(15) Promotion.--The term ``promotion'' means an action,
including paid advertising, technical assistance, or trade
servicing activity, to enhance the image or desirability of
canola, rapeseed, or canola or rapeseed products in domestic
and foreign markets, or an activity designed to communicate to
consumers, processors, wholesalers, retailers, government
officials, or others information relating to the positive
attributes of canola, rapeseed, or canola or rapeseed products
or the benefits of use or distribution of canola, rapeseed, or
canola or rapeseed products.
(16) Qualified state canola and rapeseed board.--The term
``qualified State canola and rapeseed board'' means a State
canola and rapeseed promotion entity that is authorized and
functioning under State law.
(17) Research.--The term ``research'' means any type of
test, study, or analysis to advance the image, desirability,
marketability, production, product development, quality, or
functional or nutritional value of canola, rapeseed, or canola
or rapeseed products, including research activity designed to
identify and analyze barriers to export sales of canola or
rapeseed produced in the United States.
(18) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture.
(19) State.--The term ``State'' means any of the 50 States,
the District of Columbia and the Commonwealth of Puerto Rico.
(20) United states.--The term ``United States'' means
collectively the 50 States, the District of Columbia, and the
Commonwealth of Puerto Rico.
SEC. 924. ISSUANCE AND AMENDMENT OF ORDERS.
(a) In General.--Subject to subsection (b), the Secretary shall
issue 1 or more orders under this subtitle applicable to producers and
first purchasers of canola, rapeseed, or canola or rapeseed products.
The order shall be national in scope. Not more than 1 order shall be in
effect under this subtitle at any 1 time.
(b) Procedure.--
(1) Proposal or request for issuance.--The Secretary may
propose the issuance of an order under this subtitle, or an
association of canola and rapeseed producers or any other
person that would be affected by an order issued pursuant to
this subtitle may request the issuance of, and submit a
proposal for, an order.
(2) Notice and comment concerning proposed order.--Not
later than 60 days after the receipt of a request and proposal
for an order pursuant to paragraph (1), or whenever the
Secretary determines to propose an order, the Secretary shall
publish a proposed order and give due notice and opportunity
for public comment on the proposed order.
(3) Issuance of order.--After notice and opportunity for
public comment are given as provided in paragraph (2), the
Secretary shall issue an order, taking into consideration the
comments received and including in the order provisions
necessary to ensure that the order is in conformity with the
requirements of this subtitle. The order shall be issued and
become effective not later than 180 days following publication
of the proposed order.
(c) Amendments.--The Secretary, from time to time, may amend an
order issued under this section.
SEC. 925. REQUIRED TERMS IN ORDERS.
(a) In General.--An order issued under this subtitle shall contain
the terms and conditions specified in this section.
(b) Establishment and Membership of the National Canola and
Rapeseed Board.--
(1) In general.--The order shall provide for the
establishment of, and appointment of members to, a National
Canola and Rapeseed Board to administer the order.
(2) Service to entire industry.--The Board shall carry out
programs and projects that will provide maximum benefit to the
canola and rapeseed industry in all parts of the United States
and only promote canola, rapeseed, or canola or rapeseed
products.
(3) Board membership.--The Board shall consist of 15
members, including--
(A) 11 members who are producers, including--
(i) 1 member from each of 6 geographic
regions comprised of States where canola or
rapeseed is produced, as determined by the
Secretary; and
(ii) 5 members from the geographic regions
referred to in clause (i), allocated according
to the production in each region; and
(B) 4 members who are industry members, including
at least--
(i) 1 member who represents manufacturers
of canola or rapeseed end products; and
(ii) 1 member who represents persons who
commercially buy or sell canola or rapeseed.
(4) Limitation on state residence.--There shall be no more
than 4 producer members of the Board from any State.
(5) Modifying board membership.--In accordance with
regulations approved by the Secretary, at least once each 3
years and not more than once each 2 years, the Board shall
review the geographic distribution of canola and rapeseed
production throughout the United States and, if warranted,
recommend to the Secretary that the Secretary--
(A) reapportion regions in order to reflect the
geographic distribution of canola and rapeseed
production; and
(B) reapportion the seats on the Board to reflect
the production in each region.
(6) Certification of organizations.--
(A) In general.--The eligibility of any State
organization to represent producers shall be certified
by the Secretary.
(B) Criteria.--The Secretary shall certify any
State organization that the Secretary determines has a
history of stability and permanency and meets at least
1 of the following criteria:
(i) Majority representation.--The total
paid membership of the organization--
(I) is comprised of at least a
majority of canola or rapeseed
producers; or
(II) represents at least a majority
of the canola or rapeseed producers in
the State.
(ii) Substantial number of producers
represented.--The organization represents a
substantial number of producers that produce a
substantial quantity of canola or rapeseed in
the State.
(iii) Purpose.--The organization is a
general farm or agricultural organization that
has as a stated objective the promotion and
development of the United States canola or
rapeseed industry and the economic welfare of
United States canola or rapeseed producers.
(C) Report.--The Secretary shall make a
certification under this paragraph on the basis of a
factual report submitted by the State organization.
(7) Terms of office.--
(A) In general.--The members of the Board shall
serve for a term of 3 years, except that the members
appointed to the initial Board shall serve,
proportionately, for terms of 1, 2, and 3 years, as
determined by the Secretary.
(B) Termination of terms.--Notwithstanding
subparagraph (C), each member shall continue to serve
until a successor is appointed by the Secretary.
(C) Limitation on terms.--No individual may serve
more than 2 consecutive 3-year terms as a member.
(8) Compensation.--A member of the Board shall serve
without compensation, but shall be reimbursed for necessary and
reasonable expenses incurred in the performance of duties for
and approved by the Board.
(c) Powers and Duties of the Board.--The order shall define the
powers and duties of the Board, which shall include the power and
duty--
(1) to administer the order in accordance with the terms
and conditions of the order;
(2) to make regulations to effectuate the terms and
conditions of the order;
(3) to meet, organize, and select from among members of the
Board a chairperson, other officers, and committees and
subcommittees, as the Board determines appropriate;
(4) to establish working committees of persons other than
Board members;
(5) to employ such persons, other than Board members, as
the Board considers necessary, and to determine the
compensation and define the duties of the persons;
(6) to prepare and submit for the approval of the
Secretary, when appropriate or necessary, a recommended rate of
assessment under section 926, and a fiscal period budget of the
anticipated expenses in the administration of the order,
including the probable costs of all programs and projects;
(7) to develop programs and projects, subject to subsection
(d);
(8) to enter into contracts or agreements, subject to
subsection (e), to develop and carry out programs or projects
of research, promotion, industry information, and consumer
information;
(9) to carry out research, promotion, industry information,
and consumer information projects, and to pay the costs of the
projects with assessments collected under section 926;
(10) to keep minutes, books, and records that reflect the
actions and transactions of the Board, and promptly report
minutes of each Board meeting to the Secretary;
(11) to appoint and convene, from time to time, working
committees comprised of producers, industry members, and the
public to assist in the development of research, promotion,
industry information, and consumer information programs for
canola, rapeseed, and canola and rapeseed products;
(12) to invest, pending disbursement under a program or
project, funds collected through assessments authorized under
section 926, or funds earned from investments, only in--
(A) obligations of the United States or an agency
of the United States;
(B) general obligations of a State or a political
subdivision of a State;
(C) an interest-bearing account or certificate of
deposit of a bank that is a member of the Federal
Reserve System; or
(D) obligations fully guaranteed as to principal
and interest by the United States;
(13) to receive, investigate, and report to the Secretary
complaints of violations of the order;
(14) to furnish the Secretary with such information as the
Secretary may request;
(15) to recommend to the Secretary amendments to the order;
(16) to develop and recommend to the Secretary for approval
such regulations as may be necessary for the development and
execution of programs or projects, or as may otherwise be
necessary, to carry out the order; and
(17) to provide the Secretary with advance notice of
meetings.
(d) Programs and Budgets.--
(1) Submission to secretary.--The order shall provide that
the Board shall submit to the Secretary for approval any
program or project of research, promotion, consumer
information, or industry information. No program or project
shall be implemented prior to approval by the Secretary.
(2) Budgets.--The order shall require the Board, prior to
the beginning of each fiscal year, or as may be necessary after
the beginning of a fiscal year, to submit to the Secretary for
approval budgets of anticipated expenses and disbursements in
the implementation of the order, including projected costs of
research, promotion, consumer information, and industry
information programs and projects.
(3) Incurring expenses.--The Board may incur such expenses
for programs or projects of research, promotion, consumer
information, or industry information, and other expenses for
the administration, maintenance, and functioning of the Board
as may be authorized by the Secretary, including any
implementation, administrative, and referendum costs incurred
by the Department.
(4) Paying expenses.--The funds to cover the expenses
referred to in paragraph (3) shall be paid by the Board from
assessments collected under section 926 or funds borrowed
pursuant to paragraph (5).
(5) Authority to borrow.--To meet the expenses referred to
in paragraph (3), the Board shall have the authority to borrow
funds, as approved by the Secretary, for capital outlays and
startup costs.
(e) Contracts and Agreements.--
(1) In general.--To ensure efficient use of funds, the
order shall provide that the Board may enter into a contract or
agreement for the implementation and carrying out of a program
or project of canola, rapeseed, or canola or rapeseed products
research, promotion, consumer information, or industry
information, including a contract with a producer organization,
and for the payment of the costs with funds received by the
Board under the order.
(2) Requirements.--A contract or agreement under paragraph
(1) shall provide that--
(A) the contracting party shall develop and submit
to the Board a program or project together with a
budget that shall show the estimated costs to be
incurred for the program or project;
(B) the program or project shall become effective
on the approval of the Secretary; and
(C) the contracting party shall keep accurate
records of all transactions, account for funds received
and expended, make periodic reports to the Board of
activities conducted, and make such other reports as
the Board or the Secretary may require.
(3) Producer organizations.--The order shall provide that
the Board may contract with producer organizations for any
other services. The contract shall include provisions
comparable to those required by paragraph (2).
(f) Books and Records of the Board.--
(1) In general.--The order shall require the Board to--
(A) maintain such books and records (which shall be
available to the Secretary for inspection and audit) as
the Secretary may prescribe;
(B) prepare and submit to the Secretary, from time
to time, such reports as the Secretary may prescribe;
and
(C) account for the receipt and disbursement of all
funds entrusted to the Board.
(2) Audits.--The Board shall cause the books and records of
the Board to be audited by an independent auditor at the end of
each fiscal year, and a report of the audit to be submitted to
the Secretary.
(g) Prohibition.--
(1) In general.--Subject to paragraph (2), the Board shall
not engage in any action to, nor shall any funds received by
the Board under this subtitle be used to--
(A) influence legislation or governmental action;
(B) engage in an action that would be a conflict of
interest;
(C) engage in advertising that is false or
misleading; or
(D) engage in promotion that would disparage other
commodities.
(2) Action permitted.--Paragraph (1) does not preclude--
(A) the development and recommendation of
amendments to the order;
(B) the communication to appropriate government
officials of information relating to the conduct,
implementation, or results of promotion, research,
consumer information, or industry information
activities under the order; or
(C) any action designed to market canola or
rapeseed products directly to a foreign government or
political subdivision of a foreign government.
(h) Books and Records.--
(1) In general.--The order shall require that each
producer, first purchaser, or industry member shall--
(A) maintain and submit to the Board any reports
considered necessary by the Secretary to ensure
compliance with this subtitle; and
(B) make available during normal business hours,
for inspection by employees of the Board or Secretary,
such books and records as are necessary to carry out
this subtitle, including such records as are necessary
to verify any required reports.
(2) Confidentiality.--
(A) In general.--Except as otherwise provided in
this subtitle, all information obtained from books,
records, or reports required to be maintained under
paragraph (1) shall be kept confidential, and shall not
be disclosed to the public by any person.
(B) Disclosure.--Information referred to in
subparagraph (A) may be disclosed to the public if--
(i) the Secretary considers the information
relevant;
(ii) the information is revealed in a suit
or administrative hearing brought at the
direction or on the request of the Secretary or
to which the Secretary or any officer of the
Department is a party; and
(iii) the information relates to this
subtitle.
(C) Misconduct.--A knowing disclosure of
confidential information in violation of subparagraph
(A) by an officer or employee of the Board or
Department, except as required by other law or allowed
under subparagraph (B) or (D), shall be considered a
violation of this subtitle.
(D) General statements.--Nothing in this paragraph
prohibits--
(i) the issuance of general statements,
based on the reports, of the number of persons
subject to the order or statistical data
collected from the reports, if the statements
do not identify the information furnished by
any person; or
(ii) the publication, by direction of the
Secretary, of the name of a person violating
the order, together with a statement of the
particular provisions of the order violated by
the person.
(3) Availability of information.--
(A) Exception.--Except as provided in this
subtitle, information obtained under this subtitle may
be made available to another agency of the Federal
Government for a civil or criminal law enforcement
activity if the activity is authorized by law and if
the head of the agency has made a written request to
the Secretary specifying the particular information
desired and the law enforcement activity for which the
information is sought.
(B) Penalty.--Any person knowingly violating this
subsection, on conviction, shall be subject to a fine
of not more than $1,000 or to imprisonment for not more
than 1 year, or both, and if an officer or employee of
the Board or the Department, shall be removed from
office or terminated from employment, as applicable.
(5) Withholding information.--Nothing in this subtitle
authorizes withholding information from Congress.
(i) Use of Assessments.--The order shall provide that the
assessments collected under section 926 shall be used for payment of
the expenses in implementing and administering this subtitle, with
provision for a reasonable reserve, and to cover those administrative
costs incurred by the Secretary in implementing and administering this
subtitle.
(j) Other Terms and Conditions.--The order also shall contain such
terms and conditions, not inconsistent with this subtitle, as
determined necessary by the Secretary to effectuate this subtitle.
SEC. 926. ASSESSMENTS.
(a) In General.--
(1) First purchasers.--During the effective period of an
order issued pursuant to this subtitle, assessments shall be--
(A) levied on all canola or rapeseed produced in
the United States and marketed; and
(B) deducted from the payment made to a producer
for all canola or rapeseed sold to a first purchaser.
(2) Direct processing.--The order shall provide that any
person processing canola or rapeseed of that person's own
production and marketing the canola or rapeseed, or canola or
rapeseed products, shall remit to the Board or a qualified
State canola and rapeseed board, in the manner prescribed by
the order, an assessment established at a rate equivalent to
the rate provided for under subsection (d).
(b) Limitation on Assessments.--No more than 1 assessment may be
assessed under subsection (a) on any canola or rapeseed produced (as
remitted by a first purchaser).
(c) Remitting Assessments.--
(1) In general.--Assessments required under subsection (a)
shall be remitted to the Board by a first purchaser. The Board
shall use qualified State canola and rapeseed boards to collect
the assessments. If an appropriate qualified State canola and
rapeseed board does not exist to collect an assessment, the
assessment shall be collected by the Board. There shall be only
1 qualified State canola or rapeseed Board in each State.
(2) Times to remit assessment.--Each first purchaser shall
remit the assessment to the Board as provided for in the order.
(d) Assessment Rate.--
(1) Initial rate.--The initial assessment rate shall be 4
cents per hundredweight of canola or rapeseed produced and
marketed.
(2) Increase.--The assessment rate may be increased on
recommendation by the Board to a rate not exceeding 10 cents
per hundredweight of canola or rapeseed produced and marketed
in a State, unless--
(A) after the initial referendum is held under
section 927(a), the Board recommends an increase above
10 cents per hundredweight; and
(B) the increase is approved in a referendum under
section 927(b).
(3) Credit.--A producer who demonstrates to the Board that
the producer is participating in a program of an established
qualified State canola and rapeseed board shall receive credit,
in determining the assessment due from the producer, for
contributions to the program of up to 2 cents per hundredweight
of canola or rapeseed marketed.
(e) Late Payment Charge.--
(1) In general.--There shall be a late payment charge
imposed on any person who fails to remit, on or before the date
provided for in the order, to the Board the total amount for
which the person is liable.
(2) Amount of charge.--The amount of the late payment
charge imposed under paragraph (1) shall be prescribed by the
Board with the approval of the Secretary.
(f) Refund of Assessments From Escrow Account.--
(1) Establishment of escrow account.--During the period
beginning on the date on which an order is first issued under
section 924(b)(3) and ending on the date on which a referendum
is conducted under section 927(a), the Board shall--
(A) establish an escrow account to be used for
assessment refunds; and
(B) place funds in such account in accordance with
paragraph (2).
(2) Placement of funds in account.--The Board shall place
in such account, from assessments collected during the period
referred to in paragraph (1), an amount equal to the product
obtained by multiplying the total amount of assessments
collected during the period by 10 percent.
(3) Right to receive refund.--The Board shall refund to a
producer the assessments paid by or on behalf of the producer
if--
(A) the producer is required to pay the assessment;
(B) the producer does not support the program
established under this subtitle; and
(C) the producer demands the refund prior to the
conduct of the referendum under section 927(a).
(4) Form of demand.--The demand shall be made in accordance
with such regulations, in such form, and within such time
period as prescribed by the Board.
(5) Making of refund.--The refund shall be made on
submission of proof satisfactory to the Board that the producer
paid the assessment for which the refund is demanded.
(6) Proration.--If--
(A) the amount in the escrow account required by
paragraph (1) is not sufficient to refund the total
amount of assessments demanded by eligible producers;
and
(B) the order is not approved pursuant to the
referendum conducted under section 927(a);
the Board shall prorate the amount of the refunds among all
eligible producers who demand a refund.
(7) Program approved.--If the plan is approved pursuant to
the referendum conducted under section 927(a), all funds in the
escrow account shall be returned to the Board for use by the
Board in accordance with this subtitle.
SEC. 927. REFERENDA.
(a) Initial Referendum.--
(1) Requirement.--During the period ending 30 months after
the date of the first issuance of an order under section 924,
the Secretary shall conduct a referendum among producers who,
during a representative period as determined by the Secretary,
have been engaged in the production of canola or rapeseed for
the purpose of ascertaining whether the order then in effect
shall be continued.
(2) Advance notice.--The Secretary shall, to the extent
practicable, provide broad public notice in advance of any
referendum. The notice shall be provided, without advertising
expenses, by means of newspapers, county newsletters, the
electronic media, and press releases, through the use of
notices posted in State and county Cooperative State Research,
Education, and Extension Service offices and county
Consolidated Farm Service Agency offices, and by other
appropriate means specified in the order. The notice shall
include information on when the referendum will be held,
registration and voting requirements, rules regarding absentee
voting, and other pertinent information.
(3) Approval of order.--The order shall be continued only
if the Secretary determines that the order has been approved by
not less than a majority of the producers voting in the
referendum.
(4) Disapproval of order.--If continuation of the order is
not approved by a majority of those voting in the referendum,
the Secretary shall terminate collection of assessments under
the order within 6 months after the referendum and shall
terminate the order in an orderly manner as soon as
practicable.
(b) Additional Referenda.--
(1) In general.--
(A) Requirement.--After the initial referendum on
an order, the Secretary shall conduct additional
referenda, as described in subparagraph (C), if
requested by a representative group of producers, as
described in subparagraph (B).
(B) Representative group of producers.--An
additional referendum on an order shall be conducted if
requested by 10 percent or more of the producers who
during a representative period have been engaged in the
production of canola or rapeseed.
(C) Eligible producers.--Each additional referendum
shall be conducted among all producers who, during a
representative period, as determined by the Secretary,
have been engaged in the production of canola or
rapeseed to determine whether the producers favor the
termination or suspension of the order.
(2) Disapproval of order.--If the Secretary determines, in
a referendum conducted under paragraph (1), that suspension or
termination of the order is favored by a majority of the
producers voting in the referendum, the Secretary shall suspend
or terminate, as appropriate, collection of assessments under
the order within 6 months after the determination, and shall
suspend or terminate the order, as appropriate, in an orderly
manner as soon as practicable after the determination.
(3) Opportunity to request additional referenda.--
(A) In general.--Beginning on the date that is 5
years after the conduct of a referendum under this
subtitle, and every 5 years thereafter, the Secretary
shall provide canola and rapeseed producers an
opportunity to request an additional referendum.
(B) Method of making request.--
(i) In-person requests.--To carry out
subparagraph (A), the Secretary shall establish
a procedure under which a producer may request
a reconfirmation referendum in-person at a
county Cooperative State Research, Education,
and Extension Service office or a county
Consolidated Farm Service Agency office during
a period established by the Secretary, or as
provided in clause (ii).
(ii) Mail-in requests.--In lieu of making a
request in person, a producer may make a
request by mail. To facilitate the submission
of requests by mail, the Secretary may make
mail-in request forms available to producers.
(C) Notifications.--The Secretary shall publish a
notice in the Federal Register, and the Board shall
provide written notification to producers, not later
than 60 days prior to the end of the period established
under subparagraph (B)(i) for an in-person request, of
the opportunity of producers to request an additional
referendum. The notification shall explain the right of
producers to an additional referendum, the procedure
for a referendum, the purpose of a referendum, and the
date and method by which producers may act to request
an additional referendum under this paragraph. The
Secretary shall take such other action as the Secretary
determines is necessary to ensure that producers are
made aware of the opportunity to request an additional
referendum.
(D) Action by secretary.--As soon as practicable
following the submission of a request for an additional
referendum, the Secretary shall determine whether a
sufficient number of producers have requested the
referendum, and take such steps as are necessary to
conduct the referendum, as required under paragraph
(1).
(E) Time limit.--An additional referendum requested
under the procedures provided in this paragraph shall
be conducted not later than 1 year after the Secretary
determines that a representative group of producers, as
described in paragraph (1)(B), have requested the
conduct of the referendum.
(c) Procedures.--
(1) Reimbursement of secretary.--The Secretary shall be
reimbursed from assessments collected by the Board for any
expenses incurred by the Secretary in connection with the
conduct of an activity required under this section.
(2) Date.--Each referendum shall be conducted for a
reasonable period of time not to exceed 3 days, established by
the Secretary, under a procedure under which producers
intending to vote in the referendum shall certify that the
producers were engaged in the production of canola, rapeseed,
or canola or rapeseed products during the representative period
and, at the same time, shall be provided an opportunity to vote
in the referendum.
(3) Place.--Referenda under this section shall be conducted
at locations determined by the Secretary. On request, absentee
mail ballots shall be furnished by the Secretary in a manner
prescribed by the Secretary.
SEC. 928. PETITION AND REVIEW.
(a) Petition.--
(1) In general.--A person subject to an order issued under
this subtitle may file with the Secretary a petition--
(A) stating that the order, a provision of the
order, or an obligation imposed in connection with the
order is not established in accordance with law; and
(B) requesting a modification of the order or an
exemption from the order.
(2) Hearings.--The petitioner shall be given the
opportunity for a hearing on a petition filed under paragraph
(1), in accordance with regulations issued by the Secretary.
(3) Ruling.--After a hearing under paragraph (2), the
Secretary shall make a ruling on the petition that is the
subject of the hearing, which shall be final if the ruling is
in accordance with applicable law.
(4) Limitation on petition.--Any petition filed under this
subtitle challenging an order, or any obligation imposed in
connected with an order, shall be filed not later than 2 years
after the effective date of the order or obligation.
(b) Review.--
(1) Commencement of action.--The district court of the
United States in any district in which the person who is a
petitioner under subsection (a) resides or carries on business
shall have jurisdiction to review a ruling on the petition, if
a complaint is filed by the person not later than 20 days after
the date of the entry of a ruling by the Secretary under
subsection (a)(3).
(2) Process.--Service of process in a proceeding under
paragraph (1) shall be conducted in accordance with the Federal
Rules of Civil Procedure.
(3) Remands.--If the court determines, under paragraph (1),
that a ruling issued under subsection (a)(3) is not in
accordance with applicable law, the court shall remand the
matter to the Secretary with directions either--
(A) to make such ruling as the court shall
determine to be in accordance with law; or
(B) to take such further proceedings as, in the
opinion of the court, the law requires.
(4) Enforcement.--The pendency of proceedings instituted
under subsection (a) shall not impede, hinder, or delay the
Attorney General or the Secretary from taking any action under
section 929.
SEC. 929. ENFORCEMENT.
(a) Jurisdiction.--The district courts of the United States are
vested with jurisdiction specifically to enforce, and to prevent and
restrain any person from violating, an order or regulation made or
issued under this subtitle.
(b) Referral to Attorney General.--A civil action authorized to be
commenced under this section shall be referred to the Attorney General
for appropriate action, except that the Secretary shall not be required
to refer to the Attorney General a violation of this subtitle if the
Secretary believes that the administration and enforcement of this
subtitle would be adequately served by providing a suitable written
notice or warning to the person who committed the violation or by
administrative action under section 928.
(c) Civil Penalties and Orders.--
(1) Civil penalties.--
(A) In general.--Any person who willfully violates
any provision of an order or regulation issued by the
Secretary under this subtitle, or who fails or refuses
to pay, collect, or remit an assessment or fee required
of the person under an order or regulation, may be
assessed--
(i) a civil penalty by the Secretary of not
more than $1,000 for each violation; and
(ii) in the case of a willful failure to
pay, collect, or remit an assessment as
required by an order or regulation, an
additional penalty equal to the amount of the
assessment.
(B) Separate offense.--Each violation under
subparagraph (A) shall be a separate offense.
(2) Cease-and-desist orders.--In addition to, or in lieu
of, a civil penalty under paragraph (1), the Secretary may
issue an order requiring a person to cease and desist from
continuing a violation.
(3) Notice and hearing.--No penalty shall be assessed, or
cease-and-desist order issued, by the Secretary under this
subsection unless the person against whom the penalty is
assessed or the order is issued is given notice and opportunity
for a hearing before the Secretary with respect to the
violation.
(4) Finality.--The order of the Secretary assessing a
penalty or imposing a cease-and-desist order under this
subsection shall be final and conclusive unless the affected
person files an appeal of the order with the appropriate
district court of the United States in accordance with
subsection (d).
(d) Review by District Court.--
(1) Commencement of action.--Any person who has been
determined to be in violation of this subtitle, or against whom
a civil penalty has been assessed or a cease-and-desist order
issued under subsection (c), may obtain review of the penalty
or order by--
(A) filing, within the 30-day period beginning on
the date the penalty is assessed or order issued, a
notice of appeal in--
(i) the district court of the United States
for the district in which the person resides or
conducts business; or
(ii) the United States District Court for
the District of Columbia; and
(B) simultaneously sending a copy of the notice by
certified mail to the Secretary.
(2) Record.--The Secretary shall file promptly, in the
appropriate court referred to in paragraph (1), a certified
copy of the record on which the Secretary has determined that
the person has committed a violation.
(3) Standard of review.--A finding of the Secretary under
this section shall be set aside only if the finding is found to
be unsupported by substantial evidence.
(e) Failure To Obey Orders.--Any person who fails to obey a cease-
and-desist order issued under this section after the order has become
final and unappealable, or after the appropriate United States district
court has entered a final judgment in favor of the Secretary, shall be
subject to a civil penalty assessed by the Secretary, after opportunity
for a hearing and for judicial review under the procedures specified in
subsections (c) and (d), of not more than $5,000 for each offense. Each
day during which the failure continues shall be considered as a
separate violation of the order.
(f) Failure To Pay Penalties.--If a person fails to pay an
assessment of a civil penalty under this section after the assessment
has become a final and unappealable order, or after the appropriate
United States district court has entered final judgment in favor of the
Secretary, the Secretary shall refer the matter to the Attorney General
for recovery of the amount assessed in the district court in which the
person resides or conducts business. In an action for recovery, the
validity and appropriateness of the final order imposing the civil
penalty shall not be subject to review.
(g) Additional Remedies.--The remedies provided in this subtitle
shall be in addition to, and not exclusive of, other remedies that may
be available.
SEC. 930. INVESTIGATIONS AND POWER TO SUBPOENA.
(a) Investigations.--The Secretary may make such investigations as
the Secretary considers necessary--
(1) for the effective administration of this subtitle; and
(2) to determine whether any person has engaged or is
engaging in an act that constitutes a violation of this
subtitle, or an order, rule, or regulation issued under this
subtitle.
(b) Subpoenas, Oaths, and Affirmations.--
(1) In general.--For the purpose of an investigation under
subsection (a), the Secretary may administer oaths and
affirmations, subpoena witnesses, take evidence, and issue
subpoenas to require the production of any records that are
relevant to the inquiry. The attendance of witnesses and the
production of records may be required from any place in the
United States.
(2) Administrative hearings.--For the purpose of an
administrative hearing held under section 928 or 929, the
presiding officer is authorized to administer oaths and
affirmations, subpoena and compel the attendance of witnesses,
take evidence, and require the production of any records that
are relevant to the inquiry. The attendance of witnesses and
the production of records may be required from any place in the
United States.
(c) Aid of Courts.--In the case of contumacy by, or refusal to obey
a subpoena issued to, any person, the Secretary may invoke the aid of
any court of the United States within the jurisdiction of which the
investigation or proceeding is carried on, or where the person resides
or carries on business, in order to enforce a subpoena issued by the
Secretary under subsection (b). The court may issue an order requiring
the person to comply with the subpoena.
(d) Contempt.--A failure to obey an order of the court under this
section may be punished by the court as contempt of the court.
(e) Process.--Process may be served on a person in the judicial
district in which the person resides or conducts business or wherever
the person may be found.
(f) Hearing Site.--The site of a hearing held under section 928 or
729 shall be in the judicial district where the person affected by the
hearing resides or has a principal place of business.
SEC. 931. SUSPENSION OR TERMINATION OF AN ORDER.
The Secretary shall, whenever the Secretary finds that an order or
a provision of an order obstructs or does not tend to effectuate the
declared policy of this subtitle, terminate or suspend the operation of
the order or provision. The termination or suspension of an order shall
not be considered an order within the meaning of this subtitle.
SEC. 932. REGULATIONS.
The Secretary may issue such regulations as are necessary to carry
out this subtitle.
SEC. 933. AUTHORIZATION OF APPROPRIATIONS.
(a) In General.--There are authorized to be appropriated for each
fiscal year such sums as are necessary to carry out this subtitle.
(b) Administrative Expenses.--Funds appropriated under subsection
(a) shall not be available for payment of the expenses or expenditures
of the Board in administering a provision of an order issued under this
subtitle.
Subtitle C--Kiwifruit
SEC. 941. SHORT TITLE.
This subtitle may be cited as the ``National Kiwifruit Research,
Promotion, and Consumer Information Act''.
SEC. 942. FINDINGS AND PURPOSES.
(a) Findings.--Congress finds that--
(1) domestically produced kiwifruit are grown by many
individual producers;
(2) virtually all domestically produced kiwifruit are grown
in the State of California, although there is potential for
production in many other areas of the United States;
(3) kiwifruit move in interstate and foreign commerce, and
kiwifruit that do not move in channels of commerce directly
burden or affect interstate commerce;
(4) in recent years, large quantities of kiwifruit have
been imported into the United States;
(5) the maintenance and expansion of existing domestic and
foreign markets for kiwifruit, and the development of
additional and improved markets for kiwifruit, are vital to the
welfare of kiwifruit producers and other persons concerned with
producing, marketing, and processing kiwifruit;
(6) a coordinated program of research, promotion, and
consumer information regarding kiwifruit is necessary for the
maintenance and development of the markets; and
(7) kiwifruit producers, handlers, and importers are unable
to implement and finance such a program without cooperative
action.
(b) Purposes.--The purposes of this subtitle are--
(1) to authorize the establishment of an orderly procedure
for the development and financing (through an assessment) of an
effective and coordinated program of research, promotion, and
consumer information regarding kiwifruit;
(2) to use the program to strengthen the position of the
kiwifruit industry in domestic and foreign markets and
maintain, develop, and expand markets for kiwifruit; and
(3) to treat domestically produced kiwifruit and imported
kiwifruit equitably.
SEC. 943. DEFINITIONS.
In this subtitle (unless the context otherwise requires):
(1) Board.--The term ``Board'' means the National Kiwifruit
Board established under section 945.
(2) Consumer information.--The term ``consumer
information'' means any action taken to provide information to,
and broaden the understanding of, the general public regarding
the consumption, use, nutritional attributes, and care of
kiwifruit.
(3) Exporter.--The term ``exporter'' means any person from
outside the United States who exports kiwifruit into the United
States.
(4) Handler.--The term ``handler'' means any person,
excluding a common carrier, engaged in the business of buying
and selling, packing, marketing, or distributing kiwifruit as
specified in the order.
(5) Importer.--The term ``importer'' means any person who
imports kiwifruit into the United States.
(6) Kiwifruit.--The term ``kiwifruit'' means all varieties
of fresh kiwifruit grown or imported in the United States.
(7) Marketing.--The term ``marketing'' means the sale or
other disposition of kiwifruit into interstate, foreign, or
intrastate commerce by buying, marketing, distribution, or
otherwise placing kiwifruit into commerce.
(8) Order.--The term ``order'' means a kiwifruit research,
promotion, and consumer information order issued by the
Secretary under section 944.
(9) Person.--The term ``person'' means any individual,
group of individuals, partnership, corporation, association,
cooperative, or other legal entity.
(10) Processing.--The term ``processing'' means canning,
fermenting, distilling, extracting, preserving, grinding,
crushing, or in any manner changing the form of kiwifruit for
the purposes of preparing the kiwifruit for market or marketing
the kiwifruit.
(11) Producer.--The term ``producer'' means any person who
grows kiwifruit in the United States for sale in commerce.
(12) Promotion.--The term ``promotion'' means any action
taken under this subtitle (including paid advertising) to
present a favorable image for kiwifruit to the general public
for the purpose of improving the competitive position of
kiwifruit and stimulating the sale of kiwifruit.
(13) Research.--The term ``research'' means any type of
research relating to the use, nutritional value, and marketing
of kiwifruit conducted for the purpose of advancing the image,
desirability, marketability, or quality of kiwifruit.
(14) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture.
(15) United states.--The term ``United States'' means the
50 States of the United States, the District of Columbia, and
the Commonwealth of Puerto Rico.
SEC. 944. ISSUANCE OF ORDERS.
(a) Issuance.--To effectuate the declared purposes of this
subtitle, the Secretary shall issue an order applicable to producers,
handlers, and importers of kiwifruit. Any such order shall be national
in scope. Not more than 1 order shall be in effect under this subtitle
at any 1 time.
(b) Procedure.--
(1) Proposal for issuance of order.--Any person that will
be affected by this subtitle may request the issuance of, and
submit a proposal for, an order under this subtitle.
(2) Proposed order.--Not later than 90 days after the
receipt of a request and proposal for an order, the Secretary
shall publish a proposed order and give due notice and
opportunity for public comment on the proposed order.
(3) Issuance of order.--After notice and opportunity for
public comment are provided under paragraph (2), the Secretary
shall issue an order, taking into consideration the comments
received and including in the order provisions necessary to
ensure that the order is in conformity with this subtitle.
(c) Amendments.--The Secretary may amend any order issued under
this section. The provisions of this subtitle applicable to an order
shall be applicable to an amendment to an order.
SEC. 945. NATIONAL KIWIFRUIT BOARD.
(a) Membership.--An order issued by the Secretary under section 944
shall provide for the establishment of a National Kiwifruit Board that
consists of the following 11 members:
(1) 6 members who are producers (or representatives of
producers) and who are not exempt from an assessment under
section 946(b).
(2) 4 members who are importers (or representatives of
importers) and who are not exempt from an assessment under
section 946(b) or are exporters (or representatives of
exporters).
(3) 1 member appointed from the general public.
(b) Adjustment of Membership.--Subject to the 11-member limit, the
Secretary may adjust membership on the Board to accommodate changes in
production and import levels of kiwifruit.
(c) Appointment and Nomination.--
(1) Appointment.--The Secretary shall appoint the members
of the Board from nominations submitted in accordance with this
subsection.
(2) Producers.--The members referred to in subsection
(a)(1) shall be appointed from individuals nominated by
producers.
(3) Importers and exporters.--The members referred to in
subsection (a)(2) shall be appointed from individuals nominated
by importers or exporters.
(4) Public representative.--The public representative shall
be appointed from nominations submitted by other members of the
Board.
(5) Failure to nominate.--If producers, importers, and
exporters fail to nominate individuals for appointment, the
Secretary may appoint members on a basis provided for in the
order. If the Board fails to nominate a public representative,
the member may be appointed by the Secretary without a
nomination.
(d) Alternates.--The Secretary shall appoint an alternate for each
member of the Board. An alternate shall--
(1) be appointed in the same manner as the member for whom
the individual is an alternate; and
(2) serve on the Board if the member is absent from a
meeting or is disqualified under subsection (f).
(e) Terms.--A member of the Board shall be appointed for a term of
3 years. No member may serve more than 2 consecutive 3-year terms,
except that of the members first appointed--
(1) 5 members shall be appointed for a term of 2 years; and
(2) 6 members shall be appointed for a term of 3 years.
(f) Disqualification.--If a member or alternate of the Board who
was appointed as a producer, importer, exporter, or public
representative member ceases to belong to the group for which the
member was appointed, the member or alternate shall be disqualified
from serving on the Board.
(g) Compensation.--A members or alternate of the Board shall serve
without pay.
(h) General Powers and Duties.--The Board shall--
(1) administer an order issued by the Secretary under
section 944, and an amendment to the order, in accordance with
the order and amendment and this subtitle;
(2) prescribe rules and regulations to carry out the order;
(3) meet, organize, and select from among members of the
Board a chairperson, other officers, and committees and
subcommittees, as the Board determines appropriate;
(4) receive, investigate, and report to the Secretary
accounts of violations of the order;
(5) make recommendations to the Secretary with respect to
an amendment that should be made to the order; and
(6) employ or contract with a manager and staff to assist
in administering the order, except that, to reduce
administrative costs and increase efficiency, the Board shall
seek, to the extent practicable, to employ or contract with
personnel who are already associated with State chartered
organizations involved in promoting kiwifruit.
SEC. 946. REQUIRED TERMS IN ORDER.
(a) Budgets and Plans.--
(1) In general.--An order issued under section 944 shall
provide for periodic budgets and plans in accordance with this
subsection.
(2) Budgets.--The Board shall prepare and submit to the
Secretary a budget prior to the beginning of the fiscal year of
the anticipated expenses and disbursements of the Board in the
administration of the order, including probable costs of
research, promotion, and consumer information. A budget shall
become effective on a \2/3\-vote of a quorum of the Board and
approval by the Secretary.
(3) Plans.--Each budget shall include a plan for research,
promotion, and consumer information regarding kiwifruit. A plan
under this paragraph shall become effective on approval by the
Secretary. The Board may enter into contracts and agreements,
on approval by the Secretary, for--
(A) the development of and carrying out the plan;
and
(B) the payment of the cost of the plan, with funds
collected pursuant to this subtitle.
(b) Assessments.--
(1) In general.--The order shall provide for the imposition
and collection of assessments with regard to the production and
importation of kiwifruit in accordance with this subsection.
(2) Rate.--The assessment rate shall be the reate that is
recommended by a \2/3\-vote of a quorum of the Board and
approved by the Secretary, except that the rate shall not
exceed $0.10 per 7-pound tray of kiwifruit or equivalent.
(3) Collection by first handlers.--Except as provided in
paragraph (5), the first handler of kiwifruit shall--
(A) be responsible for the collection from the
producer, and payment to the Board, of assessments
required under this subsection; and
(B) maintain a separate record of the kiwifruit of
each producer whose kiwifruit are so handled, including
the kiwifruit owned by the handler.
(4) Importers.--The assessment on imported kiwifruit shall
be paid by the importer to the United States Customs Service at
the time of entry into the United States and shall be remitted
to the Board.
(5) Exemption from assessment.--The following persons or
activities are exempt from an assessment under this subsection:
(A) A producer who produces less than 500 pounds of
kiwifruit per year.
(B) An importer who imports less than 10,000 pounds
of kiwifruit per year.
(C) A sale of kiwifruit made directly from the
producer to a consumer for a purpose other than resale.
(D) The production or importation of kiwifruit for
processing.
(6) Claim of exemption.--To claim an exemption under
paragraph (5) for a particular year, a person shall--
(A) submit an application to the Board stating the
basis for the exemption and certifying that the
quantity of kiwifruit produced, imported, or sold by
the person will not exceed any poundage limitation
required for the exemption in the year; or
(B) be on a list of approved processors developed
by the Board.
(c) Use of Assessments.
(1) Authorized uses.--The order shall provide that funds
paid to the Board as assessments under subsection (b) may be
used by the Board--
(A) to pay for research, promotion, and consumer
information described in the budget of the Board under
subsection (a) and for other expenses incurred by the
Board in the administration of an order;
(B) to pay such other expenses for the
administration, maintenance, and functioning of the
Board, including any enforcement efforts for the
collection of assessments as may be authorized by the
Secretary, including interest and penalties for late
payments; and
(C) to fund a reserve established under section
947(d).
(2) Required uses.--The order shall provide that funds paid
to the Board as assessments under subsection (b) shall be used
by the Board--
(A) to pay the expenses incurred by the Secretary,
including salaries and expenses of Federal Government
employees, in implementing and administering the order;
and
(B) to reimburse the Secretary for any expenses
incurred by the Secretary in conducting referenda under
this subtitle.
(3) Limitation on use of assessments.--Except for the first
year of operation of the Board, expenses for the
administration, maintenance, and functioning of the Board may
not exceed 30 percent of the budget for a year.
(d) False Claims.--The order shall provide that any promotion
funded with assessments collected under subsection (b) may not make--
(1) any false claims on behalf of kiwifruit; and
(2) any false statements with respect to the attributes or
use of any product that competes with kiwifruit for sale in
commerce.
(e) Prohibition on Use of Funds.--The order shall provide that
funds collected by the Board under this subtitle through assessments
may not, in any manner, be used for the purpose of influencing
legislation or governmental policy or action, except for making
recommendations to the Secretary as provided for under this subtitle.
(f) Books, Records, and Reports.--
(1) Board.--The order shall require the Board--
(A) to maintain books and records with respect to
the receipt and disbursement of funds received by the
Board;
(B) to submit to the Secretary from time to time
such reports as the Secretary may require for
appropriate accounting; and
(C) to submit to the Secretary at the end of each
fiscal year a complete audit report by an independent
auditor regarding the activities of the Board during
the fiscal year.
(2) Others.--To make information and data available to the
Board and the Secretary that is appropriate or necessary for
the effectuation, administration, or enforcement of this
subtitle (or any order or regulation issued under this
subtitle), the order shall require handlers and importers who
are responsible for the collection, payment, or remittance of
assessments under subsection (b)--
(A) to maintain and make available for inspection
by the employees and agents of the Board and the
Secretary such books and records as may be required by
the order; and
(B) to file, at the times and in the manner and
content prescribed by the order, reports regarding the
collection, payment, or remittance of the assessments.
(g) Confidentiality.--
(1) In general.--The order shall require that all
information obtained pursuant to subsection (f)(2) be kept
confidential by all officers and employees and agents of the
Department and of the Board. Only such information as the
Secretary considers relevant shall be disclosed to the public
and only in a suit or administrative hearing, brought at the
request of the Secretary or to which the Secretary or any
officer of the United States is a party, involving the order
with respect to which the information was furnished or
acquired.
(2) Limitations.--Nothing in this subsection prohibits--
(A) issuance of general statements based on the
reports of a number of handlers and importers subject
to an order, if the statements do not identify the
information furnished by any person; or
(B) the publication, by direction of the Secretary,
of the name of any person violating an order issued
under section 944(a), together with a statement of the
particular provisions of the order violated by the
person.
(3) Penalty.--Any person who willfully violates this
subsection, on conviction, shall be subject to a fine of not
more than $1,000 or to imprisonment for not more than 1 year,
or both, and, if the person is a member, officer, or agent of
the board or an employee of the Department, shall be removed
from office.
(h) Withholding Information.--Nothing in this subtitle authorizes
the withholding of information from Congress.
SEC. 947. PERMISSIVE TERMS IN ORDER.
(a) Permissive Terms.--On the recommendation of the Board and with
the approval of the Secretary, an order issued under section 944 may
include the terms and conditions specified in this section and such
additional terms and conditions as the Secretary considers necessary to
effectuate the other provisions of the order and are incidental to, and
not inconsistent with, this subtitle.
(b) Alternative Payment and Reporting Schedules.--The order may
authorize the Board to designate different handler payment and
reporting schedules to recognize differences in marketing practices and
procedures.
(c) Working Groups.--The order may authorize the Board to convene
working groups drawn from producers, handlers, importers, exporters, or
the general public and utilize the expertise of the groups to assist in
the development of research and marketing programs for kiwifruit.
(d) Reserve Funds.--The order may authorize the Board to accumulate
reserve funds from assessments collected pursuant to section 946(b) to
permit an effective and continuous coordinated program of research,
promotion, and consumer information in years in which production and
assessment income may be reduced, except that any reserve fund may not
exceed the amount budgeted for operation of this subtitle for 1 year.
(e) Promotion Activities Outside United States.--The order may
authorize the Board to use, with the approval of the Secretary, funds
collected under section 946(b) and funds from other sources for the
development and expansion of sales in foreign markets of kiwifruit
produced in the United States.
SEC. 948. PETITION AND REVIEW.
(a) Petition.--
(1) In general.--A person subject to an order may file with
the Secretary a petition--
(A) stating that the order, a provision of the
order, or an obligation imposed in connection with the
order is not in accordance with law; and
(B) requesting a modification of the order or an
exemption from the order.
(2) Hearings.--A person submitting a petition under
paragraph (1) shall be given an opportunity for a hearing on
the petition, in accordance with regulations issued by the
Secretary.
(3) Ruling.--After the hearing, the Secretary shall make a
ruling on the petition which shall be final if the petition is
in accordance with law.
(4) Limitation on petition.--Any petition filed under this
subtitle challenging an order, or any obligation imposed in
connected with an order, shall be filed not later than 2 years
after the effective date of the order or obligation.
(b) Review.--
(1) Commencement of action.--The district court of the
United States in any district in which the person who is a
petitioner under subsection (a) resides or carries on business
is vested with jurisdiction to review the ruling on the
petition of the person, if a complaint for that purpose is
filed not later than 20 days after the date of the entry of a
ruling by the Secretary under subsection (a).
(2) Process.--Service of process in the proceedings shall
be conducted in accordance with the Federal Rules of Civil
Procedure.
(3) Remands.--If the court determines that the ruling is
not in accordance with law, the court shall remand the matter
to the Secretary with directions--
(A) to make such ruling as the court shall
determine to be in accordance with law; or
(B) to take such further action as, in the opinion
of the court, the law requires.
(4) Enforcement.--The pendency of a proceeding instituted
pursuant to subsection (a) shall not impede, hinder, or delay
the Attorney General or the Secretary from obtaining relief
pursuant to section 949.
SEC. 949. ENFORCEMENT.
(a) Jurisdiction.--A district court of the United States shall have
jurisdiction specifically to enforce, and to prevent and restrain any
person from violating, any order or regulation made or issued by the
Secretary under this subtitle.
(b) Referral to Attorney General.--A civil action authorized to be
brought under this section shall be referred to the Attorney General
for appropriate action, except that the Secretary is not required to
refer to the Attorney General a violation of this subtitle, or any
order or regulation issued under this subtitle, if the Secretary
believes that the administration and enforcement of this subtitle would
be adequately served by administrative action under subsection (c) or
suitable written notice or warning to any person committing the
violation.
(c) Civil Penalties and Orders.--
(1) Civil penalties.--Any person who willfully violates any
provision of any order or regulation issued by the Secretary
under this subtitle, or who fails or refuses to pay, collect,
or remit any assessment or fee duly required of the person
under the order or regulation, may be assessed a civil penalty
by the Secretary of not less than $500 nor more than $5,000 for
each such violation. Each violation shall be a separate
offense.
(2) Cease-and-desist orders.--In addition to or in lieu of
the civil penalty, the Secretary may issue an order requiring
the person to cease and desist from continuing the violation.
(3) Notice and hearing.--No order assessing a civil penalty
or cease-and-desist order may be issued by the Secretary under
this subsection unless the Secretary gives the person against
whom the order is issued notice and opportunity for a hearing
on the record before the Secretary with respect to the
violation.
(4) Finality.--The order of the Secretary assessing a
penalty or imposing a cease-and-desist order shall be final and
conclusive unless the person against whom the order is issued
files an appeal from the order with the appropriate district
court of the United States, in accordance with subsection (d).
(d) Review by United States District Court.--
(1) Commencement of action.--Any person against whom a
violation is found and a civil penalty assessed or cease-and-
desist order issued under subsection (c) may obtain review of
the penalty or order in the district court of the United States
for the district in which the person resides or does business,
or the United States district court for the District of
Columbia, by--
(A) filing a notice of appeal in the court not
later than 30 days after the date of the order; and
(B) simultaneously sending a copy of the notice by
certified mail to the Secretary.
(2) Record.--The Secretary shall promptly file in the court
a certified copy of the record on which the Secretary found
that the person had committed a violation.
(3) Standard of review.--A finding of the Secretary shall
be set aside only if the finding is found to be unsupported by
substantial evidence.
(e) Failure to Obey Orders.--Any person who fails to obey a cease-
and-desist order issued by the Secretary after the order has become
final and unappealable, or after the appropriate United States district
court has entered a final judgment in favor of the Secretary, shall be
subject to a civil penalty assessed by the Secretary, after opportunity
for a hearing and for judicial review under the procedures specified in
subsections (c) and (d), of not more than $500 for each offense. Each
day during which the failure continues shall be considered a separate
violation of the order.
(f) Failure to Pay Penalties.--If a person fails to pay an
assessment of a civil penalty after the assessment has become a final
and unappealable order issued by the Secretary, or after the
appropriate United States district court has entered final judgment in
favor of the Secretary, the Secretary shall refer the matter to the
Attorney General for recovery of the amount assessed in the district
court of the United States in any district in which the person resides
or conducts business. In the action, the validity and appropriateness
of the final order imposing the civil penalty shall not be subject to
review.
SEC. 950. INVESTIGATIONS AND POWER TO SUBPOENA.
(a) In General.--The Secretary may make such investigations as the
Secretary considers necessary--
(1) for the effective carrying out of the responsibilities
of the Secretary under this subtitle; or
(2) to determine whether a person subject to this subtitle
has engaged or is engaging in any act that constitutes a
violation of this subtitle, or any order, rule, or regulation
issued under this subtitle.
(b) Power to Subpoena.--
(1) Investigations.--For the purpose of an investigation
made under subsection (a), the Secretary may administer oaths
and affirmations and may issue subpoenas to require the
production of any records that are relevant to the inquiry. The
production of any such records may be required from any place
in the United States.
(2) Administrative hearings.--For the purpose of an
administrative hearing held under section 948 or 949, the
presiding officer is authorized to administer oaths and
affirmations, subpoena witnesses, compel the attendance of
witnesses, take evidence, and require the production of any
records that are relevant to the inquiry. The attendance of
witnesses and the production of any such records may be
required from any place in the United States.
(c) Aid of Courts.--In the case of contumacy by, or refusal to obey
a subpoena to, any person, the Secretary may invoke the aid of any
court of the United States within the jurisdiction of which the
investigation or proceeding is carried on, or where the person resides
or carries on business, to enforce a subpoena issued by the Secretary
under subsection (b). The court may issue an order requiring the person
to comply with the subpoena.
(d) Contempt.--Any failure to obey the order of the court may be
punished by the court as a contempt of the order.
(e) Process.--Process in any such case may be served in the
judicial district of which the person resides or conducts business or
wherever the person may be found.
(f) Hearing Site.--The site of any hearing held under section 948
or 949 shall be within the judicial district where the person is an
inhabitant or has a principal place of business.
SEC. 951. REFERENDA.
(a) Initial Referendum.--
(1) Referendum required.--During the 60-day period
immediately preceding the proposed effective date of an order
issued under section 944, the Secretary shall conduct a
referendum among kiwifruit producers and importers who will be
subject to assessments under the order, to ascertain whether
producers and importers approve the implementation of the
order.
(2) Approval of order.--The order shall become effective,
as provided in section 944, if the Secretary determines that--
(A) the order has been approved by a majority of
the producers and importers voting in the referendum;
and
(B) the producers and importers produce and import
more than 50 percent of the total volume of kiwifruit
produced and imported by persons voting in the
referendum.
(b) Subsequent Referenda.--The Secretary may periodically conduct a
referendum to determine if kiwifruit producers and importers favor the
continuation, termination, or suspension of any order issued under
section 944 that is in effect at the time of the referendum.
(c) Required Referenda.--The Secretary shall hold a referendum
under subsection (b)--
(1) at the end of the 6-year period beginning on the
effective date of the order and at the end of each subsequent
6-year period;
(2) at the request of the Board; or
(3) if not less than 30 percent of the kiwifruit producers
and importers subject to assessments under the order submit a
petition requesting the referendum.
(d) Vote.--On completion of a referendum under subsection (b), the
Secretary shall suspend or terminate the order that was subject to the
referendum at the end of the marketing year if--
(1) the suspension or termination of the order is favored
by not less than a majority of the producers and importers
voting in the referendum; and
(2) the producers and importers produce and import more
than 50 percent of the total volume of kiwifruit produced and
imported by persons voting in the referendum.
(e) Confidentiality.--The ballots and other information or reports
that reveal, or tend to reveal, the vote of any person under this
subtitle and the voting list shall be held strictly confidential and
shall not be disclosed.
SEC. 952. SUSPENSION AND TERMINATION OF ORDER BY SECRETARY.
(a) In General.--If the Secretary finds that an order issued under
section 944, or a provision of the order, obstructs or does not tend to
effectuate the purposes of this subtitle, the Secretary shall terminate
or suspend the operation of the order or provision.
(b) Limitation.--The termination or suspension of any order, or any
provision of an order, shall not be considered an order under this
subtitle.
SEC. 953. REGULATIONS.
The Secretary may issue such regulations as are necessary to carry
out this subtitle.
SEC. 954. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated such funds as are necessary
to carry out this subtitle for each fiscal year.
Subtitle D--Commodity Promotion and Evaluation
SEC. 961. COMMODITY PROMOTION AND EVALUATION.
(a) Findings.--Congress finds that--
(1) it is in the national public interest and vital to the
welfare of the agricultural economy of the United States to
expand and develop markets for agricultural commodities through
generic, industry-funded promotion programs;
(2) the programs play a unique role in advancing the demand
for agricultural commodities, since the programs increase the
total market for a product to the benefit of consumers and all
producers;
(3) the programs complement branded advertising
initiatives, which are aimed at increasing the market share of
individual competitors;
(4) the programs are of particular benefit to small
producers, who may lack the resources or market power to
advertise on their own;
(5) the programs do not impede the branded advertising
efforts of individual firms but instead increase market demand
by methods that each individual entity would not have the
incentive to employ;
(6) the programs, paid for by the producers who directly
reap the benefits of the programs, provide a unique opportunity
for agricultural producers to inform consumers about their
products;
(7) it is important to ensure that the programs be carried
out in an effective and coordinated manner that is designed to
strengthen the position of the commodities in the marketplace
and to maintain and expand the markets and uses of the
commodities; and
(8) independent evaluation of the effectiveness of the
programs will assist Congress and the Secretary of Agriculture
in ensuring that the objectives of the programs are met.
(b) Independent Evaluations.--Except as otherwise provided by law,
and at such intervals as the Secretary of Agriculture may determine,
but not more frequently than every 3 years or 3 years after the
establishment of a program, the Secretary shall require that each
industry-funded generic promotion program authorized by Federal law for
an agricultural commodity shall provide for an independent evaluation
of the program and the effectiveness of the program. The evaluation may
include an analysis of benefits, costs, and the efficacy of promotional
and research efforts under the program. The evaluation shall be funded
from industry assessments and made available to the public.
(c) Administrative Costs.--The Secretary shall provide to Congress
annually information on administrative expenses on programs referred to
in subsection (b).
Attest:
Secretary.
104th CONGRESS
2d Session
H. R. 2854
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