[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2854 Enrolled Bill (ENR)]

        H.R.2854

                       One Hundred Fourth Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

         Begun and held at the City of Washington on Wednesday,
   the third day of January, one thousand nine hundred and ninety-six


                                 An Act


 
        To modify the operation of certain agricultural programs.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Federal 
Agriculture Improvement and Reform 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 ACT

            Subtitle A--Short Title, Purpose, and Definitions

Sec. 101. Short title and purpose.
Sec. 102. Definitions.

              Subtitle B--Production Flexibility Contracts

Sec. 111. Authorization for use of production flexibility contracts.
Sec. 112. Elements of contracts.
Sec. 113. Amounts available for contract payments.
Sec. 114. Determination of contract payments under contracts.
Sec. 115. Payment limitations.
Sec. 116. Violations of contract.
Sec. 117. Transfer or change of interest in lands subject to contract.
Sec. 118. Planting flexibility.

 Subtitle C--Nonrecourse Marketing Assistance Loans and Loan Deficiency 
                                Payments

Sec. 131. Availability of nonrecourse marketing assistance loans.
Sec. 132. Loan rates for marketing assistance loans.
Sec. 133. Term of loans.
Sec. 134. Repayment of loans.
Sec. 135. Loan deficiency payments.
Sec. 136. Special marketing loan provisions for upland cotton.
Sec. 137. Availability of recourse loans for high moisture feed grains 
          and seed cotton.

                      Subtitle D--Other Commodities

                            Chapter 1--Dairy

Sec. 141. Milk price support program.
Sec. 142. Recourse loan program for commercial processors of dairy 
          products.
Sec. 143. Consolidation and reform of Federal milk marketing orders.
Sec. 144. Effect on fluid milk standards in State of California.
Sec. 145. Milk manufacturing marketing adjustment.
Sec. 146. Promotion.
Sec. 147. Northeast Interstate Dairy Compact.
Sec. 148. Dairy export incentive program.
Sec. 149. Authority to assist in establishment and maintenance of one or 
          more export trading companies.
Sec. 150. Standby authority to indicate entity best suited to provide 
          international market development and export services.
Sec. 151. Study and report regarding potential impact of Uruguay Round 
          on prices, income, and Government purchases.
Sec. 152. Promotion of United States dairy products in international 
          markets through dairy promotion program.

                      Chapter 2--Peanuts and Sugar

Sec. 155. Peanut program.
Sec. 156. Sugar program.

                       Subtitle E--Administration

Sec. 161. Administration.
Sec. 162. Adjustments of loans.
Sec. 163. Commodity Credit Corporation interest rate.
Sec. 164. Personal liability of producers for deficiencies.
Sec. 165. Commodity Credit Corporation sales price restrictions.

              Subtitle F--Permanent Price Support Authority

Sec. 171. Suspension and repeal of permanent price support authority.
Sec. 172. Effect of amendments.

      Subtitle G--Commission on 21st Century Production Agriculture

Sec. 181. Establishment.
Sec. 182. Composition.
Sec. 183. Comprehensive review of past and future of production 
          agriculture.
Sec. 184. Reports.
Sec. 185. Powers.
Sec. 186. Commission procedures.
Sec. 187. Personnel matters.
Sec. 188. Termination of Commission.

             Subtitle H--Miscellaneous Commodity Provisions

Sec. 191. Options pilot program.
Sec. 192. Risk management education.
Sec. 193. Crop insurance.
Sec. 194. Establishment of Office of Risk Management.
Sec. 195. Revenue insurance.
Sec. 196. Administration and operation of noninsured crop assistance 
          program.

                      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. 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. Implementation of commitments under Uruguay Round Agreements.
Sec. 243. Export credits.
Sec. 244. Market access program.
Sec. 245. Export enhancement program.
Sec. 246. Arrival certification.
Sec. 247. Compliance.
Sec. 248. Regulations.
Sec. 249. Trade compensation and assistance programs.
Sec. 250. Foreign Agricultural Service.
Sec. 251. Reports.
Sec. 252. Foreign market development cooperator program.

         Subtitle C--Miscellaneous Agricultural Trade Provisions

Sec. 261. Edward R. Madigan United States Agricultural Export Excellence 
          Award.
Sec. 262. Reporting requirements relating to tobacco.
Sec. 263. Triggered export enhancement.
Sec. 264. Disposition of commodities to prevent waste.
Sec. 265. Debt-for-health-and-protection swap.
Sec. 266. Policy on expansion of international markets.
Sec. 267. Policy on maintenance and development of export markets.
Sec. 268. Policy on trade liberalization.
Sec. 269. Agricultural trade negotiations.
Sec. 270. Policy on unfair trade practices.
Sec. 271. Agricultural aid and trade missions.
Sec. 272. Annual reports by agricultural attaches.
Sec. 273. World livestock market price information.
Sec. 274. Orderly liquidation of stocks.
Sec. 275. Sales of extra long staple cotton.
Sec. 276. Regulations.
Sec. 277. Emerging markets.
Sec. 278. Reimbursement for overhead expenses.
Sec. 279. Labeling of domestic and imported lamb and mutton.
Sec. 280. Import assistance for CBI beneficiary countries and the 
          Philippines.
Sec. 281. Studies, reports, and other provisions.
Sec. 282. Sense of Congress concerning multilateral disciplines on 
          credit guarantees.
Sec. 283. International Cotton Advisory Committee.

                         TITLE III--CONSERVATION

                         Subtitle A--Definitions

Sec. 301. Definitions applicable to highly erodible cropland 
          conservation.

              Subtitle B--Highly Erodible Land Conservation

Sec. 311. Program ineligibility.
Sec. 312. Conservation reserve lands.
Sec. 313. Good faith exemption.
Sec. 314. Expedited procedures for granting variances from conservation 
          plans.
Sec. 315. Development and implementation of conservation plans and 
          conservation systems.
Sec. 316. Investigation of possible compliance deficiencies.
Sec. 317. Wind erosion estimation pilot project.

                    Subtitle C--Wetland Conservation

Sec. 321. Program ineligibility.
Sec. 322. Delineation of wetlands; exemptions to program ineligibility.
Sec. 323. Consultation and cooperation requirements.
Sec. 324. Application of program ineligibility to affiliated persons.
Sec. 325. Clarification of definition of agricultural lands in 
          memorandum of agreement.
Sec. 326. Effective date.

     Subtitle D--Environmental Conservation Acreage Reserve Program

Sec. 331. Environmental conservation acreage reserve program.
Sec. 332. Conservation reserve program.
Sec. 333. Wetlands reserve program.
Sec. 334. Environmental quality incentives program.
Sec. 335. Conservation farm option.
Sec. 336. Repeal of superseded authorities.

           Subtitle E--Conservation Funding and Administration

Sec. 341. Conservation funding and administration.
Sec. 342. State technical committees.
Sec. 343. Public notice and comment for revisions to certain State 
          technical guides.

     Subtitle F--National Natural Resources Conservation Foundation

Sec. 351. Short title.
Sec. 352. Definitions.
Sec. 353. National Natural Resources Conservation Foundation.
Sec. 354. Composition and operation.
Sec. 355. Officers and employees.
Sec. 356. Corporate powers and obligations of the Foundation.
Sec. 357. Administrative services and support.
Sec. 358. Audits and petition of Attorney General for equitable relief.
Sec. 359. Release from liability.
Sec. 360. Authorization of appropriations.

                          Subtitle G--Forestry

Sec. 371. Office of International Forestry.
Sec. 372. Cooperative work for protection, management, and improvement 
          of National Forest System.
Sec. 373. Forestry incentives program.
Sec. 374. Optional State grants for forest legacy program.

            Subtitle H--Miscellaneous Conservation Provisions

Sec. 381. Conservation activities of Commodity Credit Corporation.
Sec. 382. Floodplain easements.
Sec. 383. Resource conservation and development program.
Sec. 384. Repeal of report requirement.
Sec. 385. Flood risk reduction.
Sec. 386. Conservation of private grazing land.
Sec. 387. Wildlife habitat incentives program.
Sec. 388. Farmland protection program.
Sec. 389. Interim moratorium on bypass flows.
Sec. 390. Everglades ecosystem restoration.
Sec. 391. Agricultural air quality research oversight.

                     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 kitchen and food bank program.
Sec. 405. National commodity processing.

                     TITLE V--AGRICULTURAL PROMOTION

             Subtitle A--Commodity Promotion and Evaluation

Sec. 501. Commodity promotion and evaluation.

Subtitle B--Issuance of Orders for Promotion, Research, and Information 
              Activities Regarding Agricultural Commodities

Sec. 511. Short title.
Sec. 512. Findings and purpose.
Sec. 513. Definitions.
Sec. 514. Issuance of orders.
Sec. 515. Required terms in orders.
Sec. 516. Permissive terms in orders.
Sec. 517. Assessments.
Sec. 518. Referenda.
Sec. 519. Petition and review of orders.
Sec. 520. Enforcement.
Sec. 521. Investigations and power to subpoena.
Sec. 522. Suspension or termination.
Sec. 523. Amendments to orders.
Sec. 524. Effect on other laws.
Sec. 525. Regulations.
Sec. 526. Authorization of appropriations.

                     Subtitle C--Canola and Rapeseed

Sec. 531. Short title.
Sec. 532. Findings and declaration of policy.
Sec. 533. Definitions.
Sec. 534. Issuance and amendment of orders.
Sec. 535. Required terms in orders.
Sec. 536. Assessments.
Sec. 537. Referenda.
Sec. 538. Petition and review.
Sec. 539. Enforcement.
Sec. 540. Investigations and power to subpoena.
Sec. 541. Suspension or termination.
Sec. 542. Regulations.
Sec. 543. Authorization of appropriations.

                          Subtitle D--Kiwifruit

Sec. 551. Short title.
Sec. 552. Findings and purposes.
Sec. 553. Definitions.
Sec. 554. Issuance of orders.
Sec. 555. National Kiwifruit Board.
Sec. 556. Required terms in order.
Sec. 557. Permissive terms in order.
Sec. 558. Petition and review.
Sec. 559. Enforcement.
Sec. 560. Investigations and power to subpoena.
Sec. 561. Referenda.
Sec. 562. Suspension or termination.
Sec. 563. Regulations.
Sec. 564. Authorization of appropriations.

                           Subtitle E--Popcorn

Sec. 571. Short title.
Sec. 572. Findings and declaration of policy.
Sec. 573. Definitions.
Sec. 574. Issuance of orders.
Sec. 575. Required terms in orders.
Sec. 576. Referenda.
Sec. 577. Petition and review.
Sec. 578. Enforcement.
Sec. 579. Investigations and power to subpoena.
Sec. 580. Relation to other programs.
Sec. 581. Regulations.
Sec. 582. Authorization of appropriations.

                        Subtitle F--Miscellaneous

Sec. 591. Maintenance of records for honey promotion program.

                            TITLE VI--CREDIT

                    Subtitle A--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.

                       Subtitle B--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.

                       Subtitle C--Emergency Loans

Sec. 621. Hazard insurance requirement.
Sec. 622. Narrowing of authority to waive application of the credit 
          elsewhere test.
Sec. 623. Linking of emergency loans for crop or livestock changes to 
          natural disasters.
Sec. 624. Maximum emergency loan indebtedness.
Sec. 625. Establishment of date for emergency loan asset valuation.
Sec. 626. Insurance of emergency loans.

                  Subtitle D--Administrative Provisions

Sec. 631. Temporary authority to enter into contracts.
Sec. 632. Use of collection agencies.
Sec. 633. Notice of loan service programs.
Sec. 634. Clarification of written statement required of borrowers.
Sec. 635. Annual review of the credit history, business operation, and 
          continued eligibility of a borrower.
Sec. 636. Extension of veterans preference.
Sec. 637. Verification of the credit elsewhere test.
Sec. 638. Sale of property.
Sec. 639. Easements on inventoried property.
Sec. 640. Definitions.
Sec. 641. Authorization for loans.
Sec. 642. Contracts on loan security properties.
Sec. 643. List of certified lenders and inventory property demonstration 
          project.
Sec. 644. Homestead property.
Sec. 645. Restructuring.
Sec. 646. Transfer of inventory land for conservation purposes.
Sec. 647. Implementation of target participation rates.
Sec. 648. Delinquent borrowers.
Sec. 649. Short form certification of farm program borrower compliance.
Sec. 650. Credit study.

                     Subtitle E--General Provisions

Sec. 661. Conforming amendments.
Sec. 662. Electronic filing of effective financing statements under the 
          clear title provisions of the Food Security Act of 1985.
Sec. 663. Effective date.

                      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. Demonstration projects.
Sec. 707. Monitoring the economic progress of rural America.
Sec. 708. Analysis by Office of Technology Assessment.
Sec. 709. Rural health infrastructure improvement.
Sec. 710. Census of agriculture.
Sec. 711. Study of the transportation of fertilizer and agricultural 
          chemicals to farmers.

   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. Water systems for rural and Native villages in Alaska.
Sec. 758. Application requirements relating to water and waste disposal 
          loan and grant programs.
Sec. 759. National Sheep Industry Improvement Center.
Sec. 759A. Cooperative agreements.
Sec. 759B. Eligibility for grants to broadcasting systems.

             Chapter 2--Rural Community Advancement Program

Sec. 761. Rural community advancement program.
Sec. 762. Simplified, uniform application for assistance from all 
          Federal rural development programs.
Sec. 763. 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. Fund for Rural America.
Sec. 794. Under Secretary of Agriculture for Rural Economic and 
          Community Development renamed the Under Secretary of 
          Agriculture for Rural Development.

             TITLE VIII--RESEARCH, EXTENSION, AND EDUCATION

   Subtitle A--Modification and Extension of Activities Under 1977 Act

Sec. 801. Purposes of agricultural research, extension, and education.
Sec. 802. National Agricultural Research, Extension, Education, and 
          Economics Advisory Board.
Sec. 803. Federal Advisory Committee Act exemption for Federal-State 
          cooperative programs.
Sec. 804. Coordination and planning of agricultural research, extension, 
          and education.
Sec. 805. Grants and fellowships for food and agricultural sciences 
          education.
Sec. 806. Grants for research on the production and marketing of 
          alcohols and industrial hydrocarbons from agricultural 
          commodities and forest products.
Sec. 807. Policy research centers.
Sec. 808. Human nutrition intervention and health promotion research 
          program.
Sec. 809. Food and nutrition education program.
Sec. 810. Purposes and findings relating to animal health and disease 
          research.
Sec. 811. Animal health and disease continuing research.
Sec. 812. Animal health and disease national or regional research.
Sec. 813. Grant program to upgrade agricultural and food sciences 
          facilities at 1890 land-grant colleges.
Sec. 814. National research and training centennial centers.
Sec. 815. Programs for Hispanic-serving institutions.
Sec. 816. International agricultural research and extension.
Sec. 817. Authorization of appropriations for agricultural research 
          programs.
Sec. 818. Authorization of appropriations for extension education.
Sec. 819. Supplemental and alternative crops research.
Sec. 820. Aquaculture assistance programs.
Sec. 821. Authorization of appropriations for rangeland research.

   Subtitle B--Modification and Extension of Activities Under 1990 Act

Sec. 831. Water quality research, education, and coordination.
Sec. 832. National genetics resources program.
Sec. 833. National agricultural weather information system.
Sec. 834. Livestock product safety and inspection program.
Sec. 835. Plant genome mapping program.
Sec. 836. Certain specialized research programs.
Sec. 837. Agricultural telecommunications program.
Sec. 838. National centers for agricultural product quality research.
Sec. 839. Red meat safety research center.
Sec. 840. Indian reservation extension agent program.
Sec. 841. Assistive technology program for farmers with disabilities.
Sec. 842. National rural information center clearinghouse.
Sec. 843. Global climate change.

        Subtitle C--Repeal of Certain Activities and Authorities

Sec. 851. Subcommittee on Food, Agricultural, and Forestry Research.
Sec. 852. Joint Council on Food and Agricultural Sciences.
Sec. 853. Agricultural Science and Technology Review Board.
Sec. 854. Animal Health Science Research Advisory Board.
Sec. 855. Resident instruction program at 1890 land-grant colleges.
Sec. 856. Grants to States for international trade development centers.
Sec. 857. Rangeland research.
Sec. 858. Composting research and extension program.
Sec. 859. Education program regarding handling of agricultural chemicals 
          and agricultural chemical containers.
Sec. 860. Program administration regarding sustainable agriculture 
          research and education.
Sec. 861. Research regarding production, preparation, processing, 
          handling, and storage of agricultural products.
Sec. 862. Plant and animal pest and disease control program.
Sec. 863. Certain specialized research programs.
Sec. 864. Commission on agricultural research facilities.
Sec. 865. Special grant to study constraints on agricultural trade.
Sec. 866. Pilot project to coordinate food and nutrition education 
          programs.
Sec. 867. Demonstration areas for rural economic development.
Sec. 868. Technical advisory committee regarding global climate change.
Sec. 869. Committee of nine under Hatch Act of 1887.
Sec. 870. Cotton crop reports.
Sec. 871. Rural economic and business development and additional 
          research grants under title V of Rural Development Act of 
          1972.
Sec. 872. Human nutrition research.
Sec. 873. Grants to upgrade 1890 land-grant college extension 
          facilities.
Sec. 874. Indian subsistence farming demonstration grant program.

              Subtitle D--Miscellaneous Research Provisions

Sec. 881. Critical agricultural materials research.
Sec. 882. Memorandum of agreement regarding 1994 Institutions.
Sec. 883. Smith-Lever Act funding for 1890 land-grant colleges, 
          including Tuskegee University.
Sec. 884. Agricultural research facilities.
Sec. 885. National competitive research initiative.
Sec. 886. Rural development research and education.
Sec. 887. Dairy goat research program.
Sec. 888. Competitive grants for research to eradicate and control brown 
          citrus aphid and citrus tristeza virus.
Sec. 889. Stuttgart National Aquaculture Research Center.
Sec. 890. Expansion of authorities related to National Arboretum.
Sec. 891. Transfer of aquacultural research center.
Sec. 892. Use of remote sensing data and other data to anticipate 
          potential food, feed, and fiber shortages or excesses and to 
          provide timely information to assist farmers with planting 
          decisions.
Sec. 893. Sense of Senate regarding methyl bromide alternative research 
          and extension activities.

          Subtitle E--Research Authority After Fiscal Year 1997

Sec. 897. Authorization of appropriations.
Sec. 898. Activities subject to availability of appropriations.

                         TITLE IX--MISCELLANEOUS

      Subtitle A--Commercial Transportation of Equine for Slaughter

Sec. 901. Findings.
Sec. 902. Definitions.
Sec. 903. Regulation of commercial transportation of equine for 
          slaughter.
Sec. 904. Limitation of authority to equine for slaughter.
Sec. 905. Effective date.

                     Subtitle B--General Provisions

Sec. 911. Interstate quarantine.
Sec. 912. Cotton classification services.
Sec. 913. Plant variety protection for certain tuber propagated plant 
          varieties.
Sec. 914. Swine health protection.
Sec. 915. Designation of Mount Pleasant National Scenic Area.
Sec. 916. Pseudorabies eradication program.
Sec. 917. Collection and use of agricultural quarantine and inspection 
          fees.
Sec. 918. Meat and poultry inspection.
Sec. 919. Reimbursable agreements.
Sec. 920. Overseas tort claims.
Sec. 921. Operation of Graduate School of Department of Agriculture as 
          nonappropriated fund instrumentality.
Sec. 922. Student internship programs.
Sec. 923. Conveyance of excess Federal personal property.
Sec. 924. Conveyance of land to White Oak Cemetery.
Sec. 925. Sale of land by the University of Arkansas.
Sec. 926. Designation of Dale Bumpers Small Farms Research Center.
Sec. 927. Department of Agriculture Washington Area Strategic Space 
          Plan.
Sec. 928. Severability.

              TITLE I--AGRICULTURAL MARKET TRANSITION ACT
           Subtitle A--Short Title, Purpose, and Definitions

SEC. 101. SHORT TITLE AND PURPOSE.

    (a) Short Title.--This title may be cited as the ``Agricultural 
Market Transition Act''.
    (b) Purpose.--It is the purpose of this title--
        (1) to authorize the use of binding production flexibility 
    contracts between the United States and agricultural producers to 
    support farming certainty and flexibility while ensuring continued 
    compliance with farm conservation and wetland protection 
    requirements;
        (2) to make nonrecourse marketing assistance loans and loan 
    deficiency payments available for certain crops;
        (3) to improve the operation of farm programs for milk, 
    peanuts, and sugar; and
        (4) to establish a commission to undertake a comprehensive 
    review of past and future production agriculture in the United 
    States.

SEC. 102. DEFINITIONS.

    In this title:
        (1) Agricultural act of 1949.--Except in section 171, the term 
    ``Agricultural Act of 1949'' means the Agricultural Act of 1949 (7 
    U.S.C. 1421 et seq.), as in effect prior to the suspensions under 
    section 171(b)(1).
        (2) 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.) and such other 
    acreage as the Secretary considers fair and equitable.
        (3) Contract.--The terms ``contract'' and ``production 
    flexibility contract'' mean a production flexibility contract 
    entered into under section 111.
        (4) 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 (7 U.S.C. 1461 et seq.) 
    that would have been in effect for the 1996 crop (but for 
    suspension under section 171(b)(1)).
        (5) Contract commodity.--The term ``contract commodity'' means 
    wheat, corn, grain sorghum, barley, oats, upland cotton, and rice.
        (6) Contract payment.--The term ``contract payment'' means a 
    payment made under this subtitle pursuant to a contract.
        (7) Department.--The term ``Department'' means the Department 
    of Agriculture.
        (8) Extra long staple cotton.--The term ``extra long staple 
    cotton'' means cotton that--
            (A) is produced from pure strain varieties of the 
        Barbadense species or any hybrid thereof, or other similar 
        types of extra long staple cotton, designated by the Secretary, 
        having characteristics needed for various end uses for which 
        United States upland cotton is not suitable and grown in 
        irrigated cotton-growing regions of the United States 
        designated by the Secretary or other areas designated by the 
        Secretary as suitable for the production of the varieties or 
        types; and
            (B) is ginned on a roller-type gin or, if authorized by the 
        Secretary, ginned on another type gin for experimental 
        purposes.
        (9) 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 section 505 of the 
    Agricultural Act of 1949 (7 U.S.C. 1465). The Secretary shall 
    adjust the farm program payment yield for the 1995 crop of a 
    contract commodity to account for any additional yield payments 
    made with respect to that crop under subsection (b)(2) of the 
    section.
        (10) Loan commodity.--The term ``loan commodity'' means each 
    contract commodity, extra long staple cotton, and oilseed.
        (11) 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.
        (12) Producer.--The term ``producer'' means an owner, operator, 
    landlord, tenant, or sharecropper who shares in the risk of 
    producing a crop and who is entitled to share in the crop available 
    for marketing from the farm, or would have shared had the crop been 
    produced. In determining whether a grower of hybrid seed is a 
    producer, the Secretary shall not take into consideration the 
    existence of a hybrid seed contract.
        (13) Secretary.--The term ``Secretary'' means the Secretary of 
    Agriculture.
        (14) 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.
        (15) United states.--The term ``United States'', when used in a 
    geographical sense, means all of the States.

              Subtitle B--Production Flexibility Contracts

SEC. 111. AUTHORIZATION FOR USE OF PRODUCTION FLEXIBILITY CONTRACTS.

    (a) Offer and Terms.--The Secretary shall offer to enter into a 
production flexibility contract with an eligible owner or producer 
described in subsection (b) on a farm containing eligible cropland. 
Under the terms of a contract, the owner or producer shall agree, in 
exchange for annual contract payments, to--
        (1) comply with applicable conservation requirements under 
    subtitle B of title XII of the Food Security Act of 1985 (16 U.S.C. 
    3811 et seq.);
        (2) comply with applicable wetland protection requirements 
    under subtitle C of title XII of the Act (16 U.S.C. 3821 et seq.);
        (3) comply with the planting flexibility requirements of 
    section 118; and
        (4) use the land subject to the contract for an agricultural or 
    related activity, but not for a nonagricultural commercial or 
    industrial use, as determined by the Secretary.
    (b) Eligible Owners and Producers Described.--The following 
producers and owners shall be eligible to enter into a contract:
        (1) An owner of eligible cropland who assumes all or a part of 
    the risk of producing a crop.
        (2) A producer (other than an owner) on eligible cropland with 
    a share-rent lease of the eligible cropland, regardless of the 
    length of the lease, if the owner enters into the same contract.
        (3) A producer (other than an owner) on eligible cropland who 
    cash rents the eligible cropland under a lease expiring on or after 
    September 30, 2002, in which case the owner is not required to 
    enter into the contract.
        (4) A producer (other than an owner) on eligible cropland who 
    cash rents the eligible cropland under a lease expiring before 
    September 30, 2002. The owner of the eligible cropland may also 
    enter into the same contract. If the producer elects to enroll less 
    than 100 percent of the eligible cropland in the contract, the 
    consent of the owner is required.
        (5) An owner of eligible cropland who cash rents the eligible 
    cropland and the lease term expires before September 30, 2002, if 
    the tenant declines to enter into a contract. In the case of an 
    owner covered by this paragraph, contract payments shall not begin 
    under a contract until the lease held by the tenant ends.
        (6) An owner or producer described in any preceding paragraph 
    regardless of whether the owner or producer purchased catastrophic 
    risk protection for a 1996 crop under section 508(b) of the Federal 
    Crop Insurance Act (7 U.S.C. 1508(b)).
    (c) Tenants and Sharecroppers.--In carrying out this subtitle, the 
Secretary shall provide adequate safeguards to protect the interests of 
tenants and sharecroppers.
    (d) Eligible Cropland Described.--Land shall be considered to be 
cropland 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 or was 
    considered planted;
        (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 section 112(a)(2).
    (e) Quantity of Eligible Cropland Covered by Contract.--Subject to 
subsection (b)(4), an owner or producer may enroll as contract acreage 
all or a portion of the eligible cropland on the farm.
    (f) Voluntary Reduction in Contract Acreage.--Subject to subsection 
(b)(4), an owner or producer who enters into a contract may 
subsequently reduce the quantity of contract acreage covered by the 
contract.

SEC. 112. ELEMENTS OF CONTRACTS.

    (a) Time for Contracting.--
        (1) Commencement.--To the extent practicable, the Secretary 
    shall commence entering into contracts not later than 45 days after 
    the date of enactment of this title.
        (2) Deadline.--Except as provided in paragraph (3), the 
    Secretary may not enter into a contract after August 1, 1996.
        (3) Conservation reserve lands.--
            (A) In general.--At the beginning of each fiscal year, the 
        Secretary shall allow an eligible owner or producer 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 paragraph (2) 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.
            (B) Amount.--Contract payments made for contract acreage 
        under this paragraph shall be made at the rate and amount 
        applicable to the annual contract payment level for the 
        applicable crop. For the fiscal year in which the conservation 
        reserve contract is terminated, the owner or producer subject 
        to the production flexibility contract may elect to receive 
        either contract payments or a prorated payment under the 
        conservation reserve contract, but not both.
    (b) Duration of Contract.--
        (1) Beginning date.--The term of a contract shall begin with--
            (A) the 1996 crop of a contract commodity; or
            (B) in the case of acreage that was subject to a 
        conservation reserve contract described in subsection (a)(3), 
        the date the production flexibility contract was entered into 
        or expanded to cover the acreage.
        (2) Ending date.--The term of a contract shall extend through 
    the 2002 crop, unless earlier terminated by the owner or producer.
    (c) 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.
    (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 
        producer, 50 percent of the contract payment for fiscal year 
        1996 shall be made not later than 30 days after the date on 
        which the contract is entered into and approved by the 
        Secretary and the owner or producer.
            (B) Subsequent fiscal years.--At the option of the owner or 
        producer for fiscal year 1997 and each subsequent fiscal year, 
        50 percent of the annual contract payment shall be made on 
        December 15 or January 15 of the fiscal year. The owner or 
        producer may change the date selected under this subparagraph 
        for a subsequent fiscal year by providing advance notice to the 
        Secretary.

SEC. 113. AMOUNTS AVAILABLE FOR CONTRACT PAYMENTS.

    (a) Fiscal Year Amounts.--The Secretary shall, to the maximum 
extent practicable, expend the following amounts to satisfy the 
obligations of the Secretary under all contracts:
        (1) For fiscal year 1996, $5,570,000,000.
        (2) For fiscal year 1997, $5,385,000,000.
        (3) For fiscal year 1998, $5,800,000,000.
        (4) For fiscal year 1999, $5,603,000,000.
        (5) For fiscal year 2000, $5,130,000,000.
        (6) For fiscal year 2001, $4,130,000,000.
        (7) For fiscal year 2002, $4,008,000,000.
    (b) Allocation.--The amount made available for a fiscal year under 
subsection (a) shall be allocated as follows:
        (1) For wheat, 26.26 percent.
        (2) For corn, 46.22 percent.
        (3) For grain sorghum, 5.11 percent.
        (4) For barley, 2.16 percent.
        (5) For oats, 0.15 percent.
        (6) For upland cotton, 11.63 percent.
        (7) For rice, 8.47 percent.
    (c) Adjustment.--The Secretary shall adjust the amounts allocated 
for each contract commodity under subsection (b) for a particular 
fiscal year by--
        (1) adding an amount equal to the sum of all repayments of 
    deficiency payments required under section 114(a)(2) of the 
    Agricultural Act of 1949 (7 U.S.C. 1445j(a)(2)) for the commodity;
        (2) adding an amount equal to the sum of all refunds of 
    contract payments received during the preceding fiscal year under 
    section 116 for the commodity; and
        (3) subtracting an amount equal to the amount, if any, 
    necessary during that fiscal year to satisfy payment requirements 
    for the commodity under sections 103B, 105B, or 107B of the 
    Agricultural Act of 1949 for the 1994 and 1995 crop years.
    (d) Additional Rice Allocation.--In addition to the adjustments 
required under subsection (c), the amount allocated under subsection 
(b) for rice contract payments shall be increased by $8,500,000 for 
each of fiscal years 1997 through 2002.
    (e) Exclusion of Certain Amounts From Contract Payments.--Any 
amount added pursuant to paragraphs (1) and (2) of subsection (c) to 
the amount available under subsection (a) for a fiscal year and paid to 
owners and producers under a contract shall not be treated as a 
contract payment for purposes of section 115(a) of this title or 
section 1001(1) of the Food Security Act of 1985 (7 U.S.C. 1308(1)). 
However, the amount of a payment covered by this subsection may not 
exceed $50,000 per person.
    (f) Effect of Payment Limitation.--The amount available under 
subsection (a) for a fiscal year shall be reduced by an amount equal to 
the total amount of contract payments for the fiscal year that owners 
and producers forgo as a result of operation of the payment limitation 
under section 1001(1) of the Food Security Act of 1985 (7 U.S.C. 
1308(1)).

SEC. 114. DETERMINATION OF CONTRACT PAYMENTS UNDER CONTRACTS.

    (a) 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--
        (1) 85 percent of the contract acreage; and
        (2) the farm program payment yield.
    (b) Annual Payment Quantity of Contract Commodities.--The payment 
quantity of each contract commodity covered by all contracts for each 
fiscal year shall be equal to the sum of the amounts calculated under 
subsection (a) for each individual contract.
    (c) Annual Payment Rate.--The payment rate for a contract commodity 
for each fiscal year shall be equal to--
        (1) the amount made available under section 113 for the 
    contract commodity for the fiscal year; divided by
        (2) the amount determined under subsection (b) for the fiscal 
    year.
    (d) Annual Payment Amount.--The amount to be paid under a contract 
in effect for each fiscal year with respect to all contract commodities 
covered by the contract shall be equal to the sum of the products of--
        (1) the payment quantity determined under subsection (a) for 
    each of the contract commodities covered by the contract; and
        (2) the corresponding payment rate for the contract commodity 
    in effect under subsection (c).
    (e) Reduction in Payment Amount.--The contract payment determined 
under subsection (d) for an owner or producer for a fiscal year shall 
be immediately reduced by the amount of any repayment of deficiency 
payments that is required under section 114(a)(2) of the Agricultural 
Act of 1949 (7 U.S.C. 1445j(a)(2)) and is not repaid as of the date the 
contract payment is determined. The Secretary shall be required to 
collect the required repayment, or any claim based on the required 
repayment, as soon as the contract payment is determined.
    (f) 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 section. The owner or producer 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 subsection.
    (g) Sharing of Contract Payments.--The Secretary shall provide for 
the sharing of contract payments among the owners and producers subject 
to the contract on a fair and equitable basis.

SEC. 115. PAYMENT LIMITATIONS.

    (a) Applicability of Payment Limitations.--Sections 1001 through 
1001C of the Food Security Act of 1985 (7 U.S.C. 1308 through 1308-3), 
as amended by this section, shall be applicable to contract payments 
made under this subtitle.
    (b) Payment Limitations.--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 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.--The total amount of the payments specified in paragraph 
    (3) that a person shall be entitled to receive under the 
    Agricultural Market Transition Act for 1 or more contract 
    commodities and oilseeds during any crop year may not exceed 
    $75,000.
        ``(3) Description of payments subject to limitation.--The 
    payments referred to in paragraph (2) are the following:
            ``(A) Any gain realized by a producer from repaying a 
        marketing assistance loan under section 131 of the Agricultural 
        Market Transition Act for a crop of any loan commodity at a 
        lower level than the original loan rate established for the 
        loan commodity under section 132 of the Act.
            ``(B) Any loan deficiency payment received for a loan 
        commodity under section 135 of the Act.
        ``(4) Definitions.--In this title, the terms `contract 
    commodity', `contract payment', `loan commodity', `oilseed', and 
    `production flexibility contract' have the meaning given those 
    terms in section 102 of the Agricultural Market Transition Act.''.
    (c) Conforming Amendments.--
        (1) Section 1001A of the Food Security Act of 1985 (7 U.S.C. 
    1308-1) is amended--
            (A) in subsection (a)(1), by striking ``under the 
        Agricultural Act of 1949 (7 U.S.C. 1421 et seq.)''; and
            (B) in subsection (b)(1), by striking ``under the 
        Agricultural Act of 1949''.
        (2) Section 1001C(a) of the Act (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 ``production adjustment payments, 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. 116. VIOLATIONS OF CONTRACT.

    (a) Termination of Contract For Violation.--Except as provided in 
subsection (b), if an owner or producer subject to a contract violates 
a requirement of the contract specified in section 111(a), the 
Secretary shall terminate the contract with respect to the owner or 
producer on each farm in which the owner or producer has an interest. 
On the termination, the owner or producer shall forfeit all rights to 
receive future contract payments on each farm in which the owner or 
producer has an interest and shall refund to the Secretary all contract 
payments received by the owner or producer during the period of the 
violation, together with interest on the contract payments as 
determined by the Secretary.
    (b) Refund or Adjustment.--If the Secretary determines that a 
violation does not warrant termination of the contract under subsection 
(a), the Secretary may require the owner or producer subject to the 
contract--
        (1) to refund to the Secretary that part of the contract 
    payments received by the owner or producer during the period of the 
    violation, together with interest on the contract payments as 
    determined by the Secretary; or
        (2) 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.
    (c) Foreclosure.--
        (1) Effect of foreclosure.--An owner or producer 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 to provide fair and equitable treatment.
        (2) Resumption of operation.--This subsection shall not void 
    the responsibilities of the owner or producer under the contract if 
    the owner or producer 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 producer, the provisions 
    of the contract in effect on the date of the foreclosure shall 
    apply.
    (d) Review.--A determination of the Secretary under this section 
shall be considered to be an adverse decision for purposes of the 
availability of administrative review of the determination.

SEC. 117. TRANSFER OR CHANGE OF INTEREST IN LANDS SUBJECT TO CONTRACT.

    (a) Termination.--Except as provided in subsection (c), a transfer 
of (or change in) the interest of an owner or producer subject to a 
contract in the contract acreage covered by the contract shall result 
in the termination of the contract with respect to the acreage, unless 
the transferee or owner of the acreage agrees to assume all obligations 
under the contract. The termination shall be effective on the date of 
the transfer or change.
    (b) Modification.--At the request of the transferee or owner, the 
Secretary may modify the contract if the modifications are consistent 
with the objectives of this subtitle, as determined by the Secretary.
    (c) Exception.--If an owner or producer 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.

SEC. 118. PLANTING FLEXIBILITY.

    (a) Permitted Crops.--Subject to subsection (b), any commodity or 
crop may be planted on contract acreage on a farm.
    (b) Limitations and Exceptions Regarding Fruits and Vegetables.--
        (1) Limitations.--The planting of fruits and vegetables (other 
    than lentils, mung beans, and dry peas) shall be prohibited on 
    contract acreage.
        (2) Exceptions.--Paragraph (1) shall not limit the planting of 
    a fruit or vegetable--
            (A) in any region in which there is a history of double-
        cropping of contract commodities with fruits or vegetables, as 
        determined by the Secretary, in which case the double-cropping 
        shall be permitted;
            (B) on a farm that the Secretary determines has a history 
        of planting fruits or vegetables on contract acreage, except 
        that a contract payment shall be reduced by an acre for each 
        acre planted to the fruit or vegetable; or
            (C) by a producer who the Secretary determines has an 
        established planting history of a specific fruit or vegetable, 
        except that--
                (i) the quantity planted may not exceed the producer's 
            average annual planting history of the fruit or vegetable 
            in the 1991 through 1995 crop years (excluding any crop 
            year in which no plantings were made), as determined by the 
            Secretary; and
                (ii) a contract payment shall be reduced by an acre for 
            each acre planted to the fruit or vegetable.

Subtitle C--Nonrecourse Marketing Assistance Loans and Loan Deficiency 
                                Payments

SEC. 131. AVAILABILITY OF NONRECOURSE MARKETING ASSISTANCE LOANS.

    (a) Nonrecourse Loans Available.--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 section 132 for the loan commodity.
    (b) Eligible Production.--The following production shall be 
eligible for a marketing assistance loan under subsection (a):
        (1) In the case of a marketing assistance loan for a contract 
    commodity, any production by a producer on a farm containing 
    eligible cropland covered by a production flexibility contract.
        (2) In the case of a marketing assistance loan for extra long 
    staple cotton and oilseeds, any production.
    (c) Compliance With Conservation and Wetlands Requirements.--As a 
condition of the receipt of a marketing assistance loan under 
subsection (a), the producer shall comply with applicable conservation 
requirements under subtitle B of title XII of the Food Security Act of 
1985 (16 U.S.C. 3811 et seq.) and applicable wetland protection 
requirements under subtitle C of title XII of the Act (16 U.S.C. 3821 
et seq.) during the term of the loan.
    (d) Additional Outlays Prohibited.--The Secretary shall carry out 
this subtitle in such a manner that there are no additional outlays 
under this subtitle as a result of the reconstitution of a farm that 
occurs as a result of the combination of another farm that does not 
contain eligible cropland covered by a production flexibility contract.

SEC. 132. LOAN RATES FOR MARKETING ASSISTANCE LOANS.

    (a) Wheat.--
        (1) Loan rate.--Subject to paragraph (2), the loan rate for a 
    marketing assistance loan under section 131 for wheat shall be--
            (A) 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
            (B) not more than $2.58 per bushel.
        (2) 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--
            (A) 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;
            (B) 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
            (C) less than 15 percent, the Secretary may not reduce the 
        loan rate for wheat for the corresponding crop.
    (b) Feed Grains.--
        (1) Loan rate for corn.--Subject to paragraph (2), the loan 
    rate for a marketing assistance loan under section 131 for corn 
    shall be--
            (A) 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
            (B) not more than $1.89 per bushel.
        (2) 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--
            (A) 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;
            (B) 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
            (C) less than 12.5 percent, the Secretary may not reduce 
        the loan rate for corn for the corresponding crop.
        (3) Other feed grains.--The loan rate for a marketing 
    assistance loan under section 131 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.
    (c) Upland Cotton.--
        (1) Loan rate.--Subject to paragraph (2), the loan rate for a 
    marketing assistance loan under section 131 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--
            (A) 85 percent of the average price (weighted by market and 
        month) of the base quality of cotton as quoted in the 
        designated United States spot markets during 3 years of the 5-
        year period ending July 31 of the year preceding the year in 
        which the crop is planted, excluding the year in which the 
        average price was the highest and the year in which the average 
        price was the lowest in the period; or
            (B) 90 percent of the average, for the 15-week period 
        beginning July 1 of the year preceding the year in which the 
        crop is planted, 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 preceding the year in 
        which the crop is planted 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.
        (2) 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.
    (d) Extra Long Staple Cotton.--The loan rate for a marketing 
assistance loan under section 131 for extra long staple cotton shall 
be--
        (1) 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-year period ending July 31 
    of the year preceding the year in which the crop is planted, 
    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
        (2) not more than $0.7965 per pound.
    (e) Rice.--The loan rate for a marketing assistance loan under 
section 131 for rice shall be $6.50 per hundredweight.
    (f) Oilseeds.--
        (1) Soybeans.--The loan rate for a marketing assistance loan 
    under section 131 for soybeans shall be--
            (A) 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
            (B) not less than $4.92 or more than $5.26 per bushel.
        (2) Sunflower seed, canola, rapeseed, safflower, mustard seed, 
    and flaxseed.--The loan rate for a marketing assistance loan under 
    section 131 for sunflower seed, canola, rapeseed, safflower, 
    mustard seed, and flaxseed, individually, shall be--
            (A) 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
            (B) not less than $0.087 or more than $0.093 per pound.
        (3) Other oilseeds.--The loan rates for a marketing assistance 
    loan under section 131 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.

SEC. 133. TERM OF LOANS.

    (a) Term of Loan.--In the case of each loan commodity (other than 
upland cotton or extra long staple cotton), a marketing assistance loan 
under section 131 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.
    (b) Special Rule for Cotton.--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 month in which the loan is 
made.
    (c) Extensions Prohibited.--The Secretary may not extend the term 
of a marketing assistance loan for any loan commodity.

SEC. 134. REPAYMENT OF LOANS.

    (a) Repayment Rates for Wheat, Feed Grains, and Oilseeds.--The 
Secretary shall permit a producer to repay a marketing assistance loan 
under section 131 for wheat, corn, grain sorghum, barley, oats, and 
oilseeds at a rate that is the lesser of--
        (1) the loan rate established for the commodity under section 
    132, plus interest (as determined by the Secretary); or
        (2) a rate that the Secretary determines will--
            (A) minimize potential loan forfeitures;
            (B) minimize the accumulation of stocks of the commodity by 
        the Federal Government;
            (C) minimize the cost incurred by the Federal Government in 
        storing the commodity; and
            (D) allow the commodity produced in the United States to be 
        marketed freely and competitively, both domestically and 
        internationally.
    (b) Repayment Rates for Upland Cotton and Rice.--The Secretary 
shall permit producers to repay a marketing assistance loan under 
section 131 for upland cotton and rice at a rate that is the lesser 
of--
        (1) the loan rate established for the commodity under section 
    132, plus interest (as determined by the Secretary); or
        (2) the prevailing world market price for the commodity 
    (adjusted to United States quality and location), as determined by 
    the Secretary.
    (c) 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 section 132, plus 
interest (as determined by the Secretary).
    (d) Prevailing World Market Price.--For purposes of this section 
and section 136, the Secretary shall prescribe by regulation--
        (1) a formula to determine the prevailing world market price 
    for each loan commodity, adjusted to United States quality and 
    location; and
        (2) a mechanism by which the Secretary shall announce 
    periodically the prevailing world market price for each loan 
    commodity.
    (e) Adjustment of Prevailing World Market Price for Upland 
Cotton.--
        (1) 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 subsection (d) shall 
    be further adjusted if--
            (A) the adjusted prevailing world market price is less than 
        115 percent of the loan rate for upland cotton established 
        under section 132, as determined by the Secretary; and
            (B) 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 section as the ``Northern Europe price'').
        (2) Further adjustment.--Except as provided in paragraph (3), 
    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:
            (A) The United States share of world exports.
            (B) The current level of cotton export sales and cotton 
        export shipments.
            (C) 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).
        (3) Limitation on further adjustment.--The adjustment under 
    paragraph (2) may not exceed the difference between--
            (A) 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
            (B) the Northern Europe price.

SEC. 135. LOAN DEFICIENCY PAYMENTS.

    (a) Availability of Loan Deficiency Payments.--Except as provided 
in subsection (d), the Secretary may make loan deficiency payments 
available to producers who, although eligible to obtain a marketing 
assistance loan under section 131 with respect to a loan commodity, 
agree to forgo obtaining the loan for the commodity in return for 
payments under this section.
    (b) Computation.--A loan deficiency payment under this section 
shall be computed by multiplying--
        (1) the loan payment rate determined under subsection (c) for 
    the loan commodity; by
        (2) 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 section.
    (c) Loan Payment Rate.--For purposes of this section, the loan 
payment rate shall be the amount by which--
        (1) the loan rate established under section 132 for the loan 
    commodity; exceeds
        (2) the rate at which a loan for the commodity may be repaid 
    under section 134.
    (d) Exception for Extra Long Staple Cotton.--This section shall not 
apply with respect to extra long staple cotton.

SEC. 136. SPECIAL MARKETING LOAN PROVISIONS FOR UPLAND COTTON.

    (a) Cotton User Marketing Certificates.--
        (1) Issuance.--Subject to paragraph (4), 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--
            (A) 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
            (B) 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 section 132.
        (2) 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.
        (3) Administration of marketing certificates.--
            (A) 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 subsection.
            (B) 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.
            (C) 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.
        (4) Exception.--The Secretary shall not issue marketing 
    certificates or cash payments under paragraph (1) 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 subsection, exceeds the Northern 
    Europe price by more than 1.25 cents per pound.
        (5) Limitation on expenditures.--Total expenditures under this 
    subsection shall not exceed $701,000,000 during fiscal years 1996 
    through 2002.
    (b) Special Import Quota.--
        (1) 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 subsection (a), exceeds the Northern Europe price by more 
    than 1.25 cents per pound, there shall immediately be in effect a 
    special import quota.
        (2) 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.
        (3) Application.--The quota shall apply to upland cotton 
    purchased not later than 90 days after the date of the Secretary's 
    announcement under paragraph (1) and entered into the United States 
    not later than 180 days after the date.
        (4) Overlap.--A special quota period may be established that 
    overlaps any existing quota period if required by paragraph (1), 
    except that a special quota period may not be established under 
    this subsection if a quota period has been established under 
    subsection (c).
        (5) Preferential tariff treatment.--The quantity under a 
    special import quota shall be considered to be an in-quota quantity 
    for purposes of--
            (A) section 213(d) of the Caribbean Basin Economic Recovery 
        Act (19 U.S.C. 2703(d));
            (B) section 204 of the Andean Trade Preference Act (19 
        U.S.C. 3203);
            (C) section 503(d) of the Trade Act of 1974 (19 U.S.C. 
        2463(d)); and
            (D) General Note 3(a)(iv) to the Harmonized Tariff 
        Schedule.
        (6) Definition.--In this subsection, 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.
    (c) 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 during 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 (b).

SEC. 137. AVAILABILITY OF RECOURSE LOANS FOR HIGH MOISTURE FEED GRAINS 
              AND SEED COTTON.

    (a) High Moisture Feed Grains.--
        (1) Recourse loans available.--For each of the 1996 through 
    2002 crops of corn and grain sorghum, the Secretary shall make 
    available recourse loans, as determined by the Secretary, to 
    producers on a farm containing eligible cropland covered by a 
    production flexibility contract who--
            (A) normally harvest all or a portion of their crop of corn 
        or grain sorghum in a high moisture state;
            (B) present--
                (i) certified scale tickets from an inspected, 
            certified commercial scale, including a licensed warehouse, 
            feedlot, feed mill, distillery, or other similar entity 
            approved by the Secretary, pursuant to regulations issued 
            by the Secretary; or
                (ii) field or other physical measurements of the 
            standing or stored crop in regions of the United States, as 
            determined by the Secretary, that do not have certified 
            commercial scales from which certified scale tickets may be 
            obtained within reasonable proximity of harvest operation;
            (C) certify that they were the owners of the feed grain at 
        the time of delivery to, and that the quantity to be placed 
        under loan under this subsection was in fact harvested on the 
        farm and delivered to, a feedlot, feed mill, or commercial or 
        on-farm high-moisture storage facility, or to a facility 
        maintained by the users of corn and grain sorghum in a high 
        moisture state; and
            (D) comply with deadlines established by the Secretary for 
        harvesting the corn or grain sorghum and submit applications 
        for loans under this subsection within deadlines established by 
        the Secretary.
        (2) Eligibility of acquired feed grains.--A loan under this 
    subsection shall be made on a quantity of corn or grain sorghum of 
    the same crop acquired by the producer equivalent to a quantity 
    determined by multiplying--
            (A) the acreage of the corn or grain sorghum in a high 
        moisture state harvested on the producer's farm; by
            (B) the lower of the farm program payment yield or the 
        actual yield on a field, as determined by the Secretary, that 
        is similar to the field from which the corn or grain sorghum 
        was obtained.
        (3) High moisture state defined.--In this subsection, the term 
    ``high moisture state'' means corn or grain sorghum having a 
    moisture content in excess of Commodity Credit Corporation 
    standards for marketing assistance loans made by the Secretary 
    under section 131.
    (b) Recourse Loans Available for Seed Cotton.--
        (1) Upland cotton.--For each of the 1996 through 2002 crops of 
    upland cotton, the Secretary shall make available recourse seed 
    cotton loans, as determined by the Secretary, to producers on a 
    farm containing eligible cropland covered by a production 
    flexibility contract.
        (2) Extra long staple cotton.--For each of the 1996 through 
    2002 crops of extra long staple cotton, the Secretary shall make 
    available recourse seed cotton loans, as determined by the 
    Secretary, on any production.
    (c) Repayment Rates.--Repayment of a recourse loan made under this 
section shall be at the loan rate established for the commodity by the 
Secretary, plus interest (as determined by the Secretary).

                     Subtitle D--Other Commodities

                            CHAPTER 1--DAIRY

SEC. 141. MILK PRICE SUPPORT PROGRAM.

    (a) Support Activities.--The Secretary of Agriculture shall support 
the price of milk produced in the 48 contiguous States through the 
purchase of cheese, butter, and nonfat dry milk produced from the milk.
    (b) Rate.--The price of milk shall be supported at the following 
rates per hundredweight for milk containing 3.67 percent butterfat:
        (1) During calendar year 1996, $10.35.
        (2) During calendar year 1997, $10.20.
        (3) During calendar year 1998, $10.05.
        (4) During calendar year 1999, $9.90.
    (c) Purchase Prices.--The support purchase prices under this 
section for each of the products of milk (butter, cheese, and nonfat 
dry milk) announced by the Secretary shall be the same for all of that 
product sold by persons offering to sell the product to the Secretary. 
The purchase prices shall be sufficient to enable plants of average 
efficiency to pay producers, on average, a price that is not less than 
the rate of price support for milk in effect under subsection (b).
    (d) Special Rule for Butter and Nonfat Dry Milk Purchase Prices.--
        (1) Allocation of purchase prices.--The Secretary may allocate 
    the rate of price support between the purchase prices for nonfat 
    dry milk and butter in a manner that will result in the lowest 
    level of expenditures by the Commodity Credit Corporation or 
    achieve such other objectives as the Secretary considers 
    appropriate. Not later than 10 days after making or changing an 
    allocation, the Secretary shall notify the Committee on Agriculture 
    of the House of Representatives and the Committee on Agriculture, 
    Nutrition, and Forestry of the Senate of the allocation. Section 
    553 of title 5, United States Code, shall not apply with respect to 
    the implementation of this section.
        (2) Timing of purchase price adjustments.--The Secretary may 
    make any such adjustments in the purchase prices for nonfat dry 
    milk and butter the Secretary considers to be necessary not more 
    than twice in each calendar year.
    (e) Refunds of 1995 and 1996 Assessments.--
        (1) Refund required.--The Secretary shall provide for a refund 
    of the entire reduction required under section 204(h)(2) of the 
    Agricultural Act of 1949 (7 U.S.C. 1446e(h)(2)), as in effect on 
    the day before the amendment made by subsection (g), in the price 
    of milk received by a producer during calendar year 1995 or 1996, 
    if the producer provides evidence that the producer did not 
    increase marketings in calendar year 1995 or 1996 when compared to 
    calendar year 1994 or 1995, respectively.
        (2) Exception.--This subsection shall not apply with respect to 
    a producer for a particular calendar year if the producer has 
    already received a refund under section 204(h) of the Agricultural 
    Act of 1949 for the same fiscal year before the effective date of 
    this section.
        (3) Treatment of refund.--A refund under this subsection shall 
    not be considered as any type of price support or payment for 
    purposes of sections 1211 and 1221 of the Food Security Act of 1985 
    (16 U.S.C. 3811 and 3821).
    (f) Commodity Credit Corporation.--The Secretary shall carry out 
the program authorized by this section through the Commodity Credit 
Corporation.
    (g) Conforming Repeal.--Effective on the first day of the first 
month beginning after the date of enactment of this title, section 204 
of the Agricultural Act of 1949 (7 U.S.C. 1446e) is repealed.
    (h) Period of Effectiveness.--This section (other than subsection 
(g)) shall be effective only during the period beginning on the first 
day of the first month beginning after the date of enactment of this 
title and ending on December 31, 1999. The program authorized by this 
section shall terminate on December 31, 1999, and shall be considered 
to have expired notwithstanding section 257 of the Balanced Budget and 
Emergency Deficit Control Act of 1985 (2 U.S.C. 907).

SEC. 142. RECOURSE LOAN PROGRAM FOR COMMERCIAL PROCESSORS OF DAIRY 
              PRODUCTS.

    (a) Recourse Loans Available.--Under such reasonable terms and 
conditions as the Secretary may prescribe, the Secretary shall make 
recourse loans available to commercial processors of eligible dairy 
products to assist the processors to manage inventories of eligible 
dairy products and assure a greater degree of price stability for the 
dairy industry during the year. The Secretary shall use the funds, 
facilities, and authorities of the Commodity Credit Corporation to 
carry out this section.
    (b) Amount of Loan.--The Secretary shall establish the amount of a 
loan for eligible dairy products, which shall reflect a milk equivalent 
value of $9.90 per hundredweight of milk containing 3.67 percent 
butterfat. The rate of interest charged participants under this section 
shall not be less than the rate of interest charged the Commodity 
Credit Corporation by the United States Treasury.
    (c) Period of Loan.--The original term of a recourse loan made 
under this section may not extend beyond the end of the fiscal year in 
which the loan is made. At the end of the fiscal year, the Secretary 
may extend the loan for an additional period not to exceed the end of 
the next fiscal year.
    (d) Definition of Eligible Dairy Products.--In this section, the 
term ``eligible dairy products'' means cheddar cheese, butter, and 
nonfat dry milk.
    (e) Effective Date.--This section shall be effective beginning 
January 1, 2000.

SEC. 143. CONSOLIDATION AND REFORM OF FEDERAL MILK MARKETING ORDERS.

    (a) Amendment of Orders.--
        (1) Required consolidation.--The Secretary shall amend Federal 
    milk marketing orders issued under section 8c of the Agricultural 
    Adjustment Act (7 U.S.C. 608c), reenacted with amendments by the 
    Agricultural Marketing Agreement Act of 1937, to limit the number 
    of Federal milk marketing orders to not less than 10 and not more 
    than 14 orders.
        (2) Inclusion of california as separate order.--Upon the 
    petition and approval of California dairy producers in the manner 
    provided in section 8c of the Agricultural Adjustment Act (7 U.S.C. 
    608c), reenacted with amendments by the Agricultural Marketing 
    Agreement Act of 1937, the Secretary shall designate the State of 
    California as a separate Federal milk marketing order. The order 
    covering California shall have the right to reblend and distribute 
    order receipts to recognize quota value.
        (3) Related issues addressed in consolidation.--Among the 
    issues the Secretary is authorized to implement as part of the 
    consolidation of Federal milk marketing orders are the following:
            (A) The use of utilization rates and multiple basing points 
        for the pricing of fluid milk.
            (B) The use of uniform multiple component pricing when 
        developing 1 or more basic formula prices for manufacturing 
        milk.
        (4) Effect of existing law.--In implementing the consolidation 
    of Federal milk marketing orders and related reforms under this 
    subsection, the Secretary may not consider, or base any decision 
    on, the table contained in section 8c(5)(A) of the Agricultural 
    Adjustment Act (7 U.S.C. 608c(5)(A)), reenacted with amendments by 
    the Agricultural Marketing Agreement Act of 1937, as added by 
    section 131 of the Food Security Act of 1985.
    (b) Expedited Process.--
        (1) Use of informal rulemaking.--To implement the consolidation 
    of Federal milk marketing orders and related reforms under 
    subsection (a), the Secretary shall use the notice and comment 
    procedures provided in section 553 of title 5, United States Code.
        (2) Time limitations.--
            (A) Proposed amendments.--The Secretary shall announce the 
        proposed amendments to be made under subsection (a) not later 
        than 2 years after the date of enactment of this title.
            (B) Final amendments.--The Secretary shall implement the 
        amendments not later than 3 years after the date of enactment 
        of this title.
        (3) Effect of court order.--The actions authorized by this 
    subsection are intended to ensure the timely publication and 
    implementation of new and amended Federal milk marketing orders. In 
    the event that the Secretary is enjoined or otherwise restrained by 
    a court order from publishing or implementing the consolidation and 
    related reforms under subsection (a), the length of time for which 
    that injunction or other restraining order is effective shall be 
    added to the time limitations specified in paragraph (2) thereby 
    extending those time limitations by a period of time equal to the 
    period of time for which the injunction or other restraining order 
    is effective.
    (c) Failure To Timely Consolidate Orders.--If the Secretary fails 
to implement the consolidation required under subsection (a)(1) within 
the time period required under subsection (b)(2)(B) (plus any 
additional period provided under subsection (b)(3)), the Secretary may 
not assess or collect assessments from milk producers or handlers under 
such section 8c for marketing order administration and services 
provided under such section after the end of that period until the 
consolidation is completed. The Secretary may not reduce the level of 
services provided under the section on account of the prohibition 
against assessments, but shall rather cover the cost of marketing order 
administration and services through funds available for the 
Agricultural Marketing Service of the Department.
    (d) Report Regarding Further Reforms.--
        (1) Report required.--Not later than April 1, 1997, the 
    Secretary shall submit to Congress a report--
            (A) reviewing the Federal milk marketing order system 
        established pursuant to section 8c of the Agricultural 
        Adjustment Act (7 U.S.C. 608c), reenacted with amendments by 
        the Agricultural Marketing Agreement Act of 1937, in light of 
        the reforms required by subsection (a);
            (B) describing the efforts underway and the progress made 
        in implementing the reforms required by subsection (a); and
            (C) containing such recommendations as the Secretary 
        considers appropriate for further improvements and reforms to 
        the Federal milk marketing order system.
        (2) Effect of other laws.--Any limitation imposed by Act of 
    Congress on the conduct or completion of reports to Congress shall 
    not apply to the report required under this section, unless the 
    limitation specifically refers to this section.

SEC. 144. EFFECT ON FLUID MILK STANDARDS IN STATE OF CALIFORNIA.

    Nothing in this Act or any other provision of law shall be 
construed to preempt, prohibit, or otherwise limit the authority of the 
State of California, directly or indirectly, to establish or continue 
to effect any law, regulation, or requirement regarding--
        (1) the percentage of milk solids or solids not fat in fluid 
    milk products sold at retail or marketed in the State of 
    California; or
        (2) the labeling of such fluid milk products with regard to 
    milk solids or solids not fat.

SEC. 145. MILK MANUFACTURING MARKETING ADJUSTMENT.

    (a) Maximum Allowances Established.--No State shall provide for a 
manufacturing allowance for the processing of milk in excess of--
        (1) $1.65 per hundredweight of milk for milk manufactured into 
    butter and nonfat dry milk; and
        (2) $1.80 per hundredweight of milk for milk manufactured into 
    cheese.
    (b) Manufacturing Allowance Defined.--In this section, the term 
``manufacturing allowance'' means--
        (1) the amount by which the product price value of butter and 
    nonfat dry milk manufactured from a hundred pounds of milk 
    containing 3.5 pounds of butterfat and 8.7 pounds of milk solids 
    not fat resulting from a State's yield and product price formulas 
    exceeds the class price for the milk used to produce those 
    products; or
        (2) the amount by which the product price value of cheese 
    manufactured from a hundred pounds of milk containing 3.5 pounds of 
    butterfat and 8.7 pounds of milk solids not fat resulting from a 
    State's yield and product price formulas exceeds the class price 
    for the milk used to produce cheese.
    (c) Effect of Violation.--If the Secretary determines following a 
hearing that a State has in effect a manufacturing allowance that 
exceeds the manufacturing allowance authorized in subsection (a), the 
Secretary shall suspend purchases of cheddar cheese, butter, and nonfat 
dry milk produced in that State until such time as the State complies 
with such subsection.
    (d) Effective Date; Implementation.--This section (other than 
subsection (e)) shall be effective during the period beginning on the 
first day of the first month beginning after the date of enactment of 
this title and ending on December 31, 1999. During that period, the 
Secretary may exercise the authority provided to the Secretary under 
this section without regard to the issuance of regulations intended to 
carry out this section.
    (e) Conforming Repeal.--Effective on the first day of the first 
month beginning after the date of enactment of this title, section 102 
of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 
1446e-1) is repealed.

SEC. 146. PROMOTION.

    (a) Congressional Purpose.--Section 1999B(a) of the Fluid Milk 
Promotion Act of 1990 (7 U.S.C. 6401(a)) is amended--
        (1) by redesignating paragraphs (6), (7) and (8) as paragraphs 
    (7), (8) and (9), respectively; and
        (2) by inserting after paragraph (5) the following:
        ``(6) the congressional purpose underlying this subtitle is to 
    maintain and expand markets for fluid milk products, not to 
    maintain or expand any processor's share of those markets and that 
    the subtitle does not prohibit or restrict individual advertising 
    or promotion of fluid milk products since the programs created and 
    funded by this subtitle are not extended to replace individual 
    advertising and promotion efforts;''.
    (b) Congressional Policy.--Section 1999B(b) of the Fluid Milk 
Promotion Act of 1990 (7 U.S.C. 6401(b)) is amended to read as follows:
    ``(b) Policy.--It is declared to be the policy of Congress that it 
is in the public interest to authorize the establishment, through the 
exercise of powers provided in this subtitle, of an orderly procedure 
for developing, financing, through adequate assessments on fluid milk 
products produced in the United States and carrying out an effective, 
continuous, and coordinated program of promotion, research, and 
consumer information designed to strengthen the position of the dairy 
industry in the marketplace and maintain and expand domestic and 
foreign markets and uses for fluid milk products, the purpose of which 
is not to compete with or replace individual advertising or promotion 
efforts designed to promote individual brand name or trade name fluid 
milk products, but rather to maintain and expand the markets for all 
fluid milk products, with the goal and purpose of this subtitle being a 
national governmental goal that authorizes and funds programs that 
result in government speech promoting government objectives.''.
    (c) Research.--Section 1999C(6) of the Fluid Milk Promotion Act of 
1990 (7 U.S.C. 6402(6)) is amended to read as follows:
        ``(6) Research.--The term `research' means market research to 
    support advertising and promotion efforts, including educational 
    activities, research directed to product characteristics, product 
    development, including new products or improved technology in 
    production, manufacturing or processing of milk and the products of 
    milk.''.
    (d) Voting.--
        (1) Initial referenda.--Section 1999N(b)(2) of the Fluid Milk 
    Promotion Act of 1990 (7 U.S.C. 6413(b)(2)) is amended by striking 
    ``all processors'' and inserting ``fluid milk processors voting in 
    the referendum''.
        (2) Suspension or termination.--Section 1999O(c) of such Act (7 
    U.S.C. 6414(c)) is amended--
            (A) in paragraph (1), by striking ``all processors'' and 
        inserting ``fluid milk processors voting in the preceding 
        referendum''; and
            (B) in paragraph (2)(B), by striking ``all processors'' and 
        inserting ``fluid milk processors voting in the referendum''.
    (e) Duration.--Section 1999O(a) of the Fluid Milk Promotion Act of 
1990 (7 U.S.C. 6414(a)) is amended by striking ``1996'' and inserting 
``2002''.

SEC. 147. NORTHEAST INTERSTATE DAIRY COMPACT.

    Congress hereby consents to the Northeast Interstate Dairy Compact 
entered into among the States of Connecticut, Maine, Massachusetts, New 
Hampshire, Rhode Island and Vermont as specified in section 1(b) Senate 
Joint Resolution 28 of the 104th Congress, as placed on the calendar of 
the Senate, subject to the following conditions:
        (1) Finding of compelling public interest.--Based upon a 
    finding by the Secretary of a compelling public interest in the 
    Compact region, the Secretary may grant the States that have 
    ratified the Northeast Interstate Dairy Compact, as of the date of 
    enactment of this title, the authority to implement the Northeast 
    Interstate Dairy Compact.
        (2) Limitation on manufacturing price.--The Northeast 
    Interstate Dairy Compact Commission shall not regulate Class II, 
    Class III, or Class III-A milk used for manufacturing purposes or 
    any other milk, other than Class I (fluid) milk, as defined by a 
    Federal milk marketing order issued under section 8c of the 
    Agricultural Adjustment Act (7 U.S.C. 608c) reenacted with 
    amendments by the Agricultural Marketing Agreement Act of 1937.
        (3) Duration.--Consent for the Northeast Interstate Dairy 
    Compact shall terminate concurrent with the Secretary's 
    implementation of the dairy pricing and Federal milk marketing 
    order consolidation and reforms under section 143.
        (4) Additional states.--Delaware, New Jersey, New York, 
    Pennsylvania, Maryland, and Virginia are the only additional States 
    that may join the Northeast Interstate Dairy Compact, individually 
    or otherwise, if upon entry the State is contiguous to a 
    participating State and if Congress consents to the entry of the 
    State into the Compact after the date of enactment of this title.
        (5) Compensation of commodity credit corporation.--Before the 
    end of each fiscal year that a Compact price regulation is in 
    effect, the Northeast Interstate Dairy Compact Commission shall 
    compensate the Commodity Credit Corporation for the cost of any 
    purchases of milk and milk products by the Corporation that result 
    from the projected rate of increase in milk production for the 
    fiscal year within the Compact region in excess of the projected 
    national average rate of the increase in milk production, as 
    determined by the Secretary.
        (6) Milk marketing order administrator.--At the request of the 
    Northeast Interstate Dairy Compact Commission, the Administrator of 
    the applicable Federal milk marketing order issued under section 
    8(c)5 of the Agricultural Adjustment Act (7 U.S.C. 608c), reenacted 
    with amendments by the Agricultural Marketing Agreement Act of 
    1937, shall provide technical assistance to the Compact Commission 
    and be compensated for that assistance.
        (7) Further conditions.--The Northeast Interstate Dairy Compact 
    Commission shall not prohibit or in any way limit the marketing in 
    the Compact region of any milk or milk product produced in any 
    other production area in the United States. The Compact Commission 
    shall respect and abide by the ongoing procedures between Federal 
    milk marketing orders with respect to the sharing of proceeds from 
    sales within the Compact region of bulk milk, packaged milk, or 
    producer milk originating from outside of the Compact region. The 
    Compact Commission shall not use compensatory payments under 
    section 10(6) of the Compact as a barrier to the entry of milk into 
    the Compact region or for any other purpose. Establishment of a 
    Compact over-order price, in itself, shall not be considered a 
    compensatory payment or a limitation or prohibition on the 
    marketing of milk.

SEC. 148. DAIRY EXPORT INCENTIVE PROGRAM.

    (a) Duration.--Section 153(a) of the Food Security Act of 1985 (15 
U.S.C. 713a-14(a)) is amended by striking ``2001'' and inserting 
``2002''.
    (b) Sole Discretion.--Section 153(b) of the Food Security Act of 
1985 (15 U.S.C. 713a-14(b)) is amended by inserting ``sole'' before 
``discretion''.
    (c) Elements of Program.--Section 153(c) of the Food Security Act 
of 1985 (15 U.S.C. 713a-14(c)) is amended--
        (1) by striking ``and'' at the end of paragraph (1);
        (2) by striking the period at the end of paragraph (2) and 
    inserting a semicolon; and
        (3) by adding at the end the following:
        ``(3) the maximum volume of dairy product exports allowable 
    consistent with the obligations of the United States as a member of 
    the World Trade Organization is exported under the program each 
    year (minus the volume sold under section 1163 of the Food Security 
    Act of 1985 (Public Law 99-198; 7 U.S.C. 1731 note) during that 
    year), except to the extent that the export of such a volume under 
    the program would, in the judgment of the Secretary, exceed the 
    limitations on the value set forth in subsection (f); and
        ``(4) payments may be made under the program for exports to any 
    destination in the world for the purpose of market development, 
    except a destination in a country with respect to which shipments 
    from the United States are otherwise restricted by law.''.
    (d) Market Development.--Section 153(e)(1) of the Food Security Act 
of 1985 (15 U.S.C. 713a-14(e)(1)) is amended--
        (1) by striking ``and'' and inserting ``the''; and
        (2) by inserting before the period the following: ``, and any 
    additional amount that may be required to assist in the development 
    of world markets for United States dairy products''.
    (e) Maximum Allowable Amounts.--Section 153 of the Food Security 
Act of 1985 (15 U.S.C. 713a-14) is amended by adding at the end the 
following:
    ``(f) Required Funding.--
        ``(1) In general.--Except as provided in paragraph (2), the 
    Commodity Credit Corporation shall in each year use money and 
    commodities for the program under this section in the maximum 
    amount consistent with the obligations of the United States as a 
    member of the World Trade Organization, minus the amount expended 
    under section 1163 of the Food Security Act of 1985 (Public Law 99-
    198; 7 U.S.C. 1731 note) during that year.
        ``(2) Volume limitations.--The Commodity Credit Corporation may 
    not exceed the limitations specified in subsection (c)(3) on the 
    volume of allowable dairy product exports.''.

SEC. 149. AUTHORITY TO ASSIST IN ESTABLISHMENT AND MAINTENANCE OF ONE 
              OR MORE EXPORT TRADING COMPANIES.

    The Secretary of Agriculture shall, consistent with the obligations 
of the United States as a member of the World Trade Organization, 
provide such advice and assistance to the United States dairy industry 
as may be necessary to enable that industry to establish and maintain 
one or more export trading companies under the Export Trading Company 
Act of 1982 (15 U.S.C. 4001 et seq.) for the purpose of facilitating 
the international market development for and exportation of dairy 
products produced in the United States.

SEC. 150. STANDBY AUTHORITY TO INDICATE ENTITY BEST SUITED TO PROVIDE 
              INTERNATIONAL MARKET DEVELOPMENT AND EXPORT SERVICES.

    (a) Indication of Entity Best Suited To Assist International Market 
Development for and Export of United States Dairy Products.--The 
Secretary of Agriculture shall indicate which entity or entities 
autonomous of the Government of the United States, which seeks such a 
designation, is best suited to facilitate the international market 
development for and exportation of United States dairy products, if the 
Secretary determines that--
        (1) the United States dairy industry has not established an 
    export trading company under the Export Trading Company Act of 1982 
    (15 U.S.C. 4001 et seq.) for the purpose of facilitating the 
    international market development for an exportation of dairy 
    products produced in the United States on or before June 30, 1997; 
    or
        (2) the quantity of exports of United States dairy products 
    during the 12-month period preceding July 1, 1998 does not exceed 
    the quantity of exports of United States dairy products during the 
    12-month period preceding July 1, 1997 by 1.5 billion pounds (milk 
    equivalent, total solids basis).
    (b) Funding of Export Activities.--The Secretary shall assist the 
entity or entities identified under subsection (a) in identifying 
sources of funding for the activities specified in subsection (a) from 
within the dairy industry and elsewhere.
    (c) Application of Section.--This section shall apply only during 
the period beginning on July 1, 1997 and ending on September 30, 2000.

SEC. 151. STUDY AND REPORT REGARDING POTENTIAL IMPACT OF URUGUAY ROUND 
              ON PRICES, INCOME, AND GOVERNMENT PURCHASES.

    (a) Study.--The Secretary of Agriculture shall conduct a study, on 
a variety by variety of cheese basis, to determine the potential impact 
on milk prices in the United States, dairy producer income, and Federal 
dairy program costs, of the allocation of additional cheese granted 
access to the United States as a result of the obligations of the 
United States as a member of the World Trade Organization.
    (b) Report.--Not later than June 30, 1997, the Secretary shall 
report to the Committee on Agriculture, Nutrition, and Forestry of the 
Senate and the Committee on Agriculture of the House of Representatives 
the results of the study conducted under this section.
    (c) Rule of Construction.--Any limitation imposed by Act of 
Congress on the conduct or completion of studies or reports to Congress 
shall not apply to the study and report required under this section, 
unless the limitation specifically refers to this section.

SEC. 152. PROMOTION OF UNITED STATES DAIRY PRODUCTS IN INTERNATIONAL 
              MARKETS THROUGH DAIRY PROMOTION PROGRAM.

    Section 113(e) of the Dairy Production Stabilization Act of 1983 (7 
U.S.C. 4504(e)) is amended by adding at the end the following new 
sentence: ``For each of fiscal years 1997 through 2001, the Board's 
budget may provide for the expenditure of revenues available to the 
Board to develop international markets for, and to promote within such 
markets, the consumption of dairy products produced in the United 
States from milk produced in the United States.''.

                      CHAPTER 2--PEANUTS AND SUGAR

SEC. 155. 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 162.
        (5) Offers from handlers.--If a producer markets a quota peanut 
    crop, meeting quality requirements for domestic edible use, through 
    the marketing association loan for two consecutive marketing years 
    and the Secretary determines that a handler provided the producer 
    with a written offer, upon delivery, for the purchase of the quota 
    peanut crops at a price equal to or in excess of the quota support 
    price, the producer shall be ineligible for quota price support for 
    the next marketing year. The Secretary shall establish the method 
    by which a producer may appeal a determination under this paragraph 
    regarding ineligibility for quota price support.
    (b) Additional Peanuts.--
        (1) In general.--Subject to paragraph (2), 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) Limitation.--The Secretary shall establish the support rate 
    on additional peanuts at a level estimated by the Secretary to 
    ensure that there are no losses to the Commodity Credit Corporation 
    on the sale or disposal of the peanuts.
        (3) 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 in new mexico pools.--
                (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 producer of Valencia peanuts may 
            enter Valencia peanuts that are produced in Texas into the 
            pools of New Mexico in a quantity not greater than the 
            average annual quantity of the peanuts that the producer 
            entered into the New Mexico pools for the 1990 through 1995 
            crops.
            (C) Types of peanuts.--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) 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 edible export 
    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. This paragraph shall not apply to profits or 
    gains from a farm with 1 acre or less of peanut production.
        (4) First 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 paragraph 
    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 the preceding paragraphs, 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. This paragraph shall not apply to profits or gains from 
    a farm with 1 acre or less of peanut production.
        (7) Second use of marketing assessments.--The Secretary shall 
    use funds collected under subsection (g) and 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 paragraph 
    that the Secretary determines are not required to cover losses in 
    area quota pools.
        (8) 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 for producers 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, the producer portion 
    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 (g) shall be effective only for 
the 1996 through 2002 crops of peanuts.
    (i) Poundage 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 1998 crop, 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 
    Agricultural Adjustment Act of 1938 (7 U.S.C. 1358-1(a)(1)) is 
    amended by striking the second sentence.
        (3) Temporary quota allocation.--Section 358-1 of the 
    Agricultural Adjustment Act of 1938 (7 U.S.C. 1358-1) is amended--
            (A) in subsection (a)(1), by striking ``domestic edible, 
        seed,'' and inserting ``domestic edible use (except seed)''; 
        and
            (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 and determined 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).''.
        (4) Undermarketings.--Part VI of subtitle B of title III of the 
    Agricultural Adjustment Act of 1938 is amended--
            (A) in section 358-1(b) (7 U.S.C. 1358-1(b))--
                (i) in paragraph (1)(B), by striking ``includ- ing--'' 
            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 (2), by striking ``(including any 
            applicable under marketings)''; and
                (ii) in paragraph (3), by striking ``(including any 
            applicable undermarketings)''.
        (5) Disaster transfers.--Section 358-1(b) of the Agricultural 
    Adjustment Act of 1938 (7 U.S.C. 1358-1(b)), as amended by 
    paragraph (4)(A)(iii), is 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 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.''.
        (6) Sale or lease.--Section 358b(a) of the Agricultural 
    Adjustment Act of 1938 (7 U.S.C. 1358b(a)) is amended--
            (A) by striking paragraph (1) and inserting the following:
        ``(1) Sale and lease authority.--
            ``(A) Sale or lease within same state.--Subject to 
        subparagraph (B) and such terms and conditions as the Secretary 
        may prescribe, the owner, or operator with the permission of 
        the owner, of a farm in a State for which a farm poundage quota 
        has been established may sell or lease all or any part of the 
        poundage quota to any other owner or operator of a farm within 
        the same State for transfer to the farm. However, any such 
        lease of poundage quota may be entered into in the fall or 
        after the normal planting season--
                ``(i) if not less than 90 percent of the basic quota 
            (the farm quota and temporary quota transfers), plus any 
            poundage quota transferred to the farm under this 
            subsection, has been planted or considered planted on the 
            farm from which the quota is to be leased; and
                ``(ii) under such terms and conditions as the Secretary 
            may by regulation prescribe.
        ``In the case of a fall transfer or a transfer after the normal 
        planting season by a cash lessee, the landowner shall not be 
        required to sign the transfer authorization. A fall transfer or 
        a transfer after the normal planting season may be made not 
        later than 72 hours after the peanuts that are the subject of 
        the transfer are inspected and graded.
            ``(B) Percentage limitations on spring transfers.--Spring 
        transfers under subparagraph (A) by sale or lease of a quota 
        for farms in a county to any owner or operator of a farm 
        outside the county within the same State shall not exceed the 
        applicable percentage specified in this subparagraph of the 
        quotas of all farms in the originating county (as of January 1, 
        1996) for the crop year in which the transfer is made, plus the 
        total amount of quotas eligible for transfer from the 
        originating county in the preceding crop year that were not 
        transferred in that year or that were transferred through an 
        expired lease. However, not more than an aggregate of 40 
        percent of the total poundage quota within a county (as of 
        January 1, 1996) may be transferred outside of the county. 
        Cumulative unexpired transfers outside of a county may not 
        exceed for a crop year the following:
                ``(i) For the 1996 crop, 15 percent.
                ``(ii) For the 1997 crop, 25 percent.
                ``(iii) For the 1998 crop, 30 percent.
                ``(iv) For the 1999 crop, 35 percent.
                ``(v) For the 2000 and subsequent crops, not more than 
            an aggregate of 40 percent of the total poundage quota 
            within the county as of January 1, 1996.
            ``(C) Clarification regarding fall transfers.--The 
        limitation in subparagraph (B) does not apply to 1-year fall 
        transfers, which in all cases may be made to any farm in the 
        same State.
            ``(D) Effect of transfer.--Any farm poundage quota 
        transferred under this paragraph shall not result in any 
        reduction in the farm poundage quota for the transferring farm 
        if the transferred quota is produced or considered produced on 
        the receiving farm.''; and
            (B) by adding at the end the following:
        ``(4) Transfers in counties with small quotas.--Notwithstanding 
    paragraphs (1) and (2), in the case of any county in a State for 
    which the poundage quota allocated to the county was less than 
    100,000 pounds for the preceding year's crop, all or any part of a 
    farm poundage quota may be transferred by sale or lease or 
    otherwise from a farm in the county to a farm in another county in 
    the same State.''.

SEC. 156. 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) Reduction in Loan Rates.--
        (1) Reduction required.--The Secretary shall reduce the loan 
    rate specified in subsection (a) for domestically grown sugarcane 
    and subsection (b) for domestically grown sugar beets if the 
    Secretary determines that negotiated reductions in export subsidies 
    and domestic subsidies provided for sugar of other major sugar 
    growing, producing, and exporting countries in the aggregate exceed 
    the commitments made as part of the Agreement on Agriculture.
        (2) Extent of reduction.--The Secretary shall not reduce the 
    loan rate under subsection (a) or (b) below a rate that provides an 
    equal measure of support to that provided by other major sugar 
    growing, producing, and exporting countries, based on an 
    examination of both domestic and export subsidies subject to 
    reduction in the Agreement on Agriculture.
        (3) Announcement of reduction.--The Secretary shall announce 
    any loan rate reduction to be made under this subsection as far in 
    advance as is practicable.
        (4) Definitions.--In this subsection:
            (A) Agreement on agriculture.--The term ``Agreement on 
        Agriculture'' means the Agreement on Agriculture referred to in 
        section 101(d)(2) of the Uruguay Round Agreements Act (19 
        U.S.C. 3511(d)(2)).
            (B) Major sugar countries.--The term ``major sugar growing, 
        producing, and exporting countries'' means--
                (i) the countries of the European Union; and
                (ii) the 10 foreign countries not covered by 
            subparagraph (A) that the Secretary determines produce the 
            greatest quantity of sugar.
    (d) Term of Loans.--
        (1) In general.--A loan 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 the 9-month period beginning on the first 
        day of the first month after the month in which the loan is 
        made; or
            (B) the end of the fiscal year in which the loan is made.
        (2) Supplemental loans.--In the case of a loan 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.
    (e) 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.
    (f) 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.
    (g) 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 any sugar pledged as collateral for a 
    nonrecourse loan shall be reduced in proportion to the loan 
    forfeiture penalty incurred by the processor.
    (h) 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.
    (i) Crops.--This section (other than subsection (f)) shall be 
effective only for the 1996 through 2002 crops of sugar beets and 
sugarcane.

                       Subtitle E--Administration

SEC. 161. ADMINISTRATION.

    (a) Use of Commodity Credit Corporation.--The Secretary shall carry 
out this title through the Commodity Credit Corporation.
    (b) Limitation on Expenditure of Commodity Credit Corporation 
Funds.--
        (1) General powers and responsibilities.--Section 4 of the 
    Commodity Credit Corporation Charter Act (15 U.S.C. 714b) is 
    amended--
            (A) in the first sentence of subsection (g), by inserting 
        before the period the following: ``, except that obligations 
        under all such contracts or agreements (other than reimbursable 
        agreements under section 11) for equipment or services relating 
        to automated data processing, information technologies, or 
        related items (including telecommunications equipment and 
        computer hardware and software) may not exceed $170,000,000 in 
        fiscal year 1996 and not more than $275,000,000 in the 6-fiscal 
        year period beginning on October 1, 1996, unless additional 
        amounts for such contracts and agreements are provided in 
        advance in appropriation Acts''; and
            (B) in subsection (h), by striking ``shall have power to 
        acquire personal property necessary to the conduct of its 
        business but''.
        (2) Reimbursable agreements.--Section 11 of the Commodity 
    Credit Corporation Charter Act (15 U.S.C. 714i) is amended by 
    adding at the end the following: ``After September 30, 1996, the 
    total amount of all allotments and fund transfers from the 
    Corporation under this section (including allotments and transfers 
    for automated data processing or information resource management 
    activities) for a fiscal year may not exceed the total amount of 
    the allotments and transfers made under this section in fiscal year 
    1995.''.
        (3) Reporting requirements.--Section 13 of the Commodity Credit 
    Corporation Charter Act (15 U.S.C. 714k) is amended by adding at 
    the end the following: ``In addition to the annual report, the 
    Corporation shall submit to Congress on a quarterly basis an 
    itemized report of all expenditures over $10,000 made under section 
    5 or 11 during the period covered by the report, including 
    expenditures in the form of allotments or fund transfers to other 
    agencies and departments of the Federal Government.''.
    (c) Determinations by Secretary.--A determination made by the 
Secretary under this title shall be final and conclusive.
    (d) Regulations.--Not later than 90 days after the date of 
enactment of this title, the Secretary and the Commodity Credit 
Corporation, as appropriate, shall issue such regulations as are 
necessary to implement this title. The issuance of the regulations 
shall be made without regard to--
        (1) the notice and comment provisions of section 553 of title 
    5, United States Code;
        (2) the Statement of Policy of the Secretary of Agriculture 
    effective July 24, 1971 (36 Fed. Reg. 13804) relating to notices of 
    proposed rulemaking and public participation in rulemaking; and
        (3) chapter 35 of title 44, United States Code (commonly know 
    as the ``Paperwork Reduction Act'').

SEC. 162. ADJUSTMENTS OF LOANS.

    (a) Adjustment Authority.--The Secretary may make appropriate 
adjustments in the loan rates for any commodity for differences in 
grade, type, quality, location, and other factors.
    (b) Manner of Adjustment.--The adjustments under the authority of 
this section 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 title.
    (c) Adjustment on County Basis.--The Secretary may establish loan 
rates for a crop for producers in individual counties in a manner that 
results in the lowest such rate being 95 percent of the national 
average loan rate, except that such action shall not result in an 
increase in outlays. Adjustments under this subsection shall not result 
in an increase in the national average loan rate for any year.

SEC. 163. 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. 164. PERSONAL LIABILITY OF PRODUCERS FOR DEFICIENCIES.

    (a) In General.--Except as provided in subsection (b), no producer 
shall be personally liable for any deficiency arising from the sale of 
the collateral securing any nonrecourse loan made under this title 
unless the loan was obtained through a fraudulent representation by the 
producer.
    (b) Limitations.--Subsection (a) shall not prevent the Commodity 
Credit Corporation or the Secretary from requiring a producer to assume 
liability for--
        (1) a deficiency in the grade, quality, or quantity of a 
    commodity stored on a farm or delivered by the producer;
        (2) a failure to properly care for and preserve a commodity; or
        (3) a failure or refusal to deliver a commodity in accordance 
    with a program established under this title.
    (c) Acquisition of Collateral.--In the case of a nonrecourse loan 
made under this title or the Commodity Credit Corporation Charter Act 
(15 U.S.C. 714 et seq.), if the Commodity Credit Corporation acquires 
title to the unredeemed collateral, the Corporation shall be under no 
obligation to pay for any market value that the collateral may have in 
excess of the loan indebtedness.
    (d) 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.

SEC. 165. COMMODITY CREDIT CORPORATION SALES PRICE RESTRICTIONS.

    (a) General Sales Authority.--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.
    (b) Nonapplication of Sales Price Restrictions.--Subsection (a) 
shall not apply to--
        (1) a sale for a new or byproduct use;
        (2) a sale of peanuts or oilseeds for the extraction of oil;
        (3) a sale for seed or feed if the sale will not substantially 
    impair any loan program;
        (4) 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;
        (5) 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;
        (6) a sale for export, as determined by the Corporation; and
        (7) a sale for other than a primary use.
    (c) Presidential Disaster Areas.--
        (1) In general.--Notwithstanding subsection (a), 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--
            (A) 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
            (B) 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.).
        (2) Costs.--Except on a reimbursable basis, the Corporation 
    shall not bear any costs in connection with making a commodity 
    available under paragraph (1) beyond the cost of the commodity to 
    the Corporation incurred in--
            (A) the storage of the commodity; and
            (B) 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.
    (d) Efficient Operations.--Subsection (a) 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.

             Subtitle F--Permanent Price Support Authority

SEC. 171. SUSPENSION AND REPEAL OF PERMANENT PRICE SUPPORT AUTHORITY.

    (a) Agricultural Adjustment Act of 1938.--
        (1) Suspensions.--The following provisions of the Agricultural 
    Adjustment Act of 1938 shall not be applicable to the 1996 through 
    2002 crops of loan commodities, peanuts, and sugar and shall not be 
    applicable to milk during the period beginning on the date of 
    enactment of this title and ending on December 31, 2002:
            (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 
    of loan commodities, peanuts, and sugar and shall not be applicable 
    to milk during the period beginning on the date of enactment of 
    this title and ending on December 31, 2002:
            (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) Section 201 (7 U.S.C. 1446).
            (I) Title III (7 U.S.C. 1447-1449).
            (J) Title IV (7 U.S.C. 1421-1433d), other than sections 
        404, 412, and 416 (7 U.S.C. 1424, 1429, and 1431).
            (K) Title V (7 U.S.C. 1461-1469).
            (L) Title VI (7 U.S.C. 1471-1471j).
        (2) Repeals.--The following provisions of the Agricultural Act 
    of 1949 are repealed:
            (A) Section 101B (7 U.S.C. 1441-2).
            (B) Section 103B (7 U.S.C. 1444-2).
            (C) Section 105B (7 U.S.C. 1444f).
            (D) Section 107B (7 U.S.C. 1445-3a).
            (E) Section 108B (7 U.S.C. 1445c-3).
            (F) Section 113 (7 U.S.C. 1445h).
            (G) Subsections (b) and (c) of section 114 (7 U.S.C. 
        1445j).
            (H) Sections 205, 206, and 207 (7 U.S.C. 1446f, 1446g, and 
        1446h).
            (I) Sections 406 and 427 (7 U.S.C. 1426 and 1433f).
        (3) Potential price support for rice.--Section 101 of the 
    Agricultural Act of 1949 (7 U.S.C. 1441), as suspended by paragraph 
    (1), is amended by adding after subsection (d) the following:
    ``(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 percent, or more than 90 percent of the parity price for rice 
as the Secretary determines will not result in increasing stocks of 
rice to the Commodity Credit Corporation.''.
    (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. 172. EFFECT OF AMENDMENTS.

    (a) Effect on Prior Crops.--Except as otherwise specifically 
provided in this title 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 enactment of this title.
    (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 enactment of this 
title.

     Subtitle G--Commission on 21st Century Production Agriculture

SEC. 181. ESTABLISHMENT.

    There is established a commission to be known as the ``Commission 
on 21st Century Production Agriculture'' (in this subtitle referred to 
as the ``Commission'').

SEC. 182. COMPOSITION.

    (a) Membership and Appointment.--The Commission shall be composed 
of 11 members, appointed as follows:
        (1) Three members shall be appointed by the President.
        (2) Four members shall be appointed by the Chairman of the 
    Committee on Agriculture of the House of Representatives in 
    consultation with the ranking minority member of the Committee.
        (3) Four members shall be appointed by the Chairman of the 
    Committee on Agriculture, Nutrition, and Forestry of the Senate in 
    consultation with the ranking minority member of the Committee.
    (b) Qualifications.--At least 1 of the members appointed under each 
of paragraphs (1), (2), and (3) of subsection (a) shall be an 
individual who is primarily involved in production agriculture. All 
other members of the Commission shall be appointed from among 
individuals having knowledge and experience in agricultural production, 
marketing, finance, or trade.
    (c) Term of Members; Vacancies.--A member of the Commission shall 
be appointed for the life of the Commission. A vacancy on the 
Commission shall not affect its powers, but shall be filled in the same 
manner as the original appointment was made.
    (d) Time for Appointment; First Meeting.--The members of the 
Commission shall be appointed not later than October 1, 1997. The 
Commission shall convene its first meeting to carry out its duties 
under this subtitle 30 days after 6 members of the Commission have been 
appointed.
    (e) Chairperson.--The chairperson of the Commission shall be 
designated jointly by the Chairman of the Committee on Agriculture of 
the House of Representatives and the Chairman of the Committee on 
Agriculture, Nutrition, and Forestry of the Senate from among the 
members of the Commission.

SEC. 183. COMPREHENSIVE REVIEW OF PAST AND FUTURE OF PRODUCTION 
              AGRICULTURE.

    (a) Initial Review.--The Commission shall conduct a comprehensive 
review of changes in the condition of production agriculture in the 
United States since the date of enactment of this title and the extent 
to which the changes are the result of this title and the amendments 
made by this title. The review shall include the following:
        (1) An assessment of the initial success of production 
    flexibility contracts in supporting the economic viability of 
    farming in the United States.
        (2) An assessment of economic risks to farms delineated by size 
    of farm operation (such as small, medium, or large farms) and 
    region of production.
        (3) An assessment of the food security situation in the United 
    States in the areas of trade, consumer prices, international 
    competitiveness of United States production agriculture, food 
    supplies, and humanitarian relief.
        (4) An assessment of the changes in farmland values and 
    agricultural producer incomes since the date of enactment of this 
    title.
        (5) An assessment of the extent to which regulatory relief for 
    agricultural producers has been enacted and implemented, including 
    the application of cost/benefit principles in the issuance of 
    agricultural regulations.
        (6) An assessment of the extent to which tax relief for 
    agricultural producers has been enacted in the form of capital 
    gains tax reductions, estate tax exemptions, and mechanisms to 
    average tax loads over high- and low-income years.
        (7) An assessment of the effect of any Federal Government 
    interference in agricultural export markets, such as the imposition 
    of trade embargoes, and the degree of implementation and success of 
    international trade agreements and United States export programs.
        (8) An assessment of the likely effect of the sale, lease, or 
    transfer of farm poundage quota for peanuts across State lines.
    (b) Subsequent Review.--The Commission shall conduct a 
comprehensive review of the future of production agriculture in the 
United States and the appropriate role of the Federal Government in 
support of production agriculture. The review shall include the 
following:
        (1) An assessment of changes in the condition of production 
    agriculture in the United States since the initial review conducted 
    under subsection (a).
        (2) Identification of the appropriate future relationship of 
    the Federal Government with production agriculture after 2002.
        (3) An assessment of the personnel and infrastructure 
    requirements of the Department of Agriculture necessary to support 
    the future relationship of the Federal Government with production 
    agriculture.
        (4) An assessment of economic risks to farms delineated by size 
    of farm operation (such as small, medium, or large farms) and 
    region of production.
    (c) Recommendations.--In carrying out the subsequent review under 
subsection (b), the Commission shall develop specific recommendations 
for legislation to achieve the appropriate future relationship of the 
Federal Government with production agriculture identified under 
subsection (a)(2).

SEC. 184. REPORTS.

    (a) Report on Initial Review.--Not later than June 1, 1998, the 
Commission shall submit to the President, the Committee on Agriculture 
of the House of Representatives, and the Committee on Agriculture, 
Nutrition, and Forestry of the Senate a report containing the results 
of the initial review conducted under section 183(a).
    (b) Report on Subsequent Review.--Not later than January 1, 2001, 
the Commission shall submit to the President and the congressional 
committees specified in subsection (a) a report containing the results 
of the subsequent review conducted under section 183(b).

SEC. 185. POWERS.

    (a) Hearings.--The Commission may, for the purpose of carrying out 
this subtitle, conduct such hearings, sit and act at such times, take 
such testimony, and receive such evidence, as the Commission considers 
appropriate.
    (b) Assistance From Other Agencies.--The Commission may secure 
directly from any department or agency of the Federal Government such 
information as may be necessary for the Commission to carry out its 
duties under this subtitle. On the request of the chairperson of the 
Commission, the head of the department or agency shall, to the extent 
permitted by law, furnish such information to the Commission.
    (c) Mail.--The Commission may use the United States mails in the 
same manner and under the same conditions as the departments and 
agencies of the Federal Government.
    (d) Assistance From Secretary.--The Secretary shall provide to the 
Commission appropriate office space and such reasonable administrative 
and support services as the Commission may request.

SEC. 186. COMMISSION PROCEDURES.

    (a) Meetings.--The Commission shall meet on a regular basis (as 
determined by the chairperson) and at the call of the chairperson or a 
majority of its members.
    (b) Quorum.--A majority of the members of the Commission shall 
constitute a quorum for the transaction of business.

SEC. 187. PERSONNEL MATTERS.

    (a) Compensation.--Each member of the Commission shall serve 
without compensation, but shall be allowed travel expenses including 
per diem in lieu of subsistence, as authorized by section 5703 of title 
5, United States Code, when engaged in the performance of Commission 
duties.
    (b) Staff.--
        (1) Appointment.--The Commission shall appoint a staff 
    director, who shall be paid at a rate not to exceed the maximum 
    rate of basic pay under section 5376 of title 5, United States 
    Code, and such professional and clerical personnel as may be 
    reasonable and necessary to enable the Commission to carry out its 
    duties under this subtitle without regard to the provisions of 
    title 5, United States Code, governing appointments in the 
    competitive service, and without regard to the provisions of 
    chapter 51 and subchapter III of chapter 53 of such title, or any 
    other provision of law, relating to the number, classification, and 
    General Schedule rates.
        (2) Limitation on compensation.--No employee appointed under 
    this subsection (other than the staff director) may be compensated 
    at a rate to exceed the maximum rate applicable to level GS-15 of 
    the General Schedule.
    (c) Detailed Personnel.--On the request of the chairperson of the 
Commission, the head of any department or agency of the Federal 
Government is authorized to detail, without reimbursement, any 
personnel of the department or agency to the Commission to assist the 
Commission in carrying out its duties under this section. The detail of 
any individual may not result in the interruption or loss of civil 
service status or other privilege of the individual.

SEC. 188. TERMINATION OF COMMISSION.

    The Commission shall terminate on submission of the final report 
required by section 184.

             Subtitle H--Miscellaneous Commodity Provisions

SEC. 191. OPTIONS PILOT PROGRAM.

    (a) Pilot Programs Authorized.--Until December 31, 2002, the 
Secretary of Agriculture may conduct a pilot program for 1 or more 
agricultural commodities supported under this title 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 
the commodities. The pilot program shall be an alternative to other 
related programs of the Department of Agriculture.
    (b) Distribution of Pilot Program.--For each agricultural commodity 
included in the pilot program, the Secretary may operate the pilot 
program in not more than 100 counties, except that not more than 6 of 
the counties may be located in any 1 State. The pilot program for a 
commodity shall not be operated in any county for more than 3 of the 
1996 through 2002 calendar years.
    (c) Eligible Participants.--In operating the pilot program, the 
Secretary may enter into contract with a producer who--
        (1) is eligible for a production flexibility contract, a 
    marketing assistance loan, or other assistance under this title;
        (2) volunteers to participate in the pilot program;
        (3) operates a farm located in a county selected for the pilot 
    program; and
        (4) meets such other eligibility requirements as the Secretary 
    may establish.
    (d) Notice to Producers.--The Secretary shall provide notice to 
each producer participating in the pilot program that--
        (1) the participation of the producer 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 the pilot 
    program than the producer would have been if the producer had not 
    participated in the pilot program.
    (e) Contracts.--The Secretary shall set forth in each contract 
under the pilot program the terms and conditions for participation in 
the pilot program and the notice required by subsection (d).
    (f) Eligible Markets.--Trades for futures and options contracts 
under the 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.).
    (g) Recordkeeping.--A producer participating in the pilot program 
shall compile, maintain, and submit (or authorize the compilation, 
maintenance, and submission) of such documentation as the regulations 
governing the pilot program require.
    (h) Use of Commodity Credit Corporation.--The Secretary shall fund 
and operate the pilot program through the Commodity Credit Corporation. 
To the maximum extent practicable, the Secretary shall operate the 
pilot program in a budget neutral manner.
    (i) Conforming Repeal.--The Options Pilot Program Act of 1990 
(subtitle E of title XI of Public Law 101-624; 7 U.S.C. 1421 note) is 
repealed.

SEC. 192. RISK MANAGEMENT EDUCATION.

    In consultation with the Commodity Futures Trading Commission, 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. As part of such 
educational activities, the Secretary may develop and implement 
programs to facilitate the participation of agricultural producers in 
commodity futures trading programs, forward contracting options, and 
insurance protection programs by assisting and training producers in 
the usage of such programs. In implementing this authority, the 
Secretary may use existing research and extension authorities and 
resources of the Department of Agriculture.

SEC. 193. CROP INSURANCE.

    (a) Catastrophic Risk Protection.--
        (1) Single delivery.--Section 508(b)(4) of the Federal Crop 
    Insurance Act (7 U.S.C. 1508(b)(4)) is amended 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 of the State 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 (or a portion of a State) as determined by the 
            Secretary, only approved insurance providers may provide 
            the coverage in the State or portion of the State.
                ``(iii) Timing of determinations.--Not later than 90 
            days after the date of enactment of this subparagraph, the 
            Secretary shall announce the results of the determinations 
            under clause (i) for policies for the 1997 crop year. For 
            subsequent crop years, the Secretary shall make the 
            announcement not later than April 30 of the year preceding 
            the year in which the crop will be produced, or at such 
            other times during the year as the Secretary finds 
            practicable in consultation with affected crop insurance 
            providers for those States (or portions of States) in which 
            catastrophic coverage remains available through local 
            offices of the Department.
                ``(iv) Current policies.--This clause shall take effect 
            beginning with the 1997 crop year. Subject to clause (ii) 
            all catastrophic risk protection policies written by local 
            offices of the Department shall be transferred to the 
            approved insurance provider for performance of all sales, 
            service, and loss adjustment functions. Any fees in 
            connection with such policies that are not yet collected at 
            the time of the transfer shall be payable to the approved 
            insurance providers assuming the policies. The transfer 
            process for policies for the 1997 crop year with sales 
            closing dates before January 1, 1997, shall begin at the 
            time of the Secretary's announcement under clause (iii) and 
            be completed by the sales closing date for the crop and 
            county. The transfer process for all subsequent policies 
            (including policies for the 1998 and subsequent crop years) 
            shall begin at a date that permits the process to be 
            completed not later than 45 days before the sales closing 
            date.''.
        (2) Waiver of mandatory linkage.--Section 508(b)(7) of the 
    Federal Crop Insurance Act (7 U.S.C. 1508(b)(7)) is amended by 
    striking subparagraph (A) and inserting the following:
            ``(A) In general.--Effective for the spring-planted 1996 
        and subsequent crops (and fall-planted 1996 crops at the option 
        of the Secretary), to be eligible for any payment or loan under 
        the Agricultural Market Transition Act, for the conservation 
        reserve program, or for 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.''.
        (3) Special rule for 1996.--
            (A) Effective period.--This paragraph shall apply only to 
        the 1996 crop year.
            (B) Availability.--During a period of not less than 2 
        weeks, but not more than 4 weeks, beginning on the date of 
        enactment of this title, the Secretary shall provide producers 
        with an opportunity to obtain catastrophic risk protection 
        insurance under section 508(b) of the Federal Crop Insurance 
        Act (7 U.S.C. 1508(b)) for a spring-planted crop, and limited 
        additional coverage for malting barley under the Malting Barley 
        Price and Quality Endorsement. The Federal Crop Insurance 
        Corporation may attach such limitations and restrictions on 
        obtaining insurance during this period as the Corporation 
        considers necessary to maintain the actuarial soundness of the 
        crop insurance program.
            (C) Attachment.--Insurance coverage under any policy 
        obtained under this paragraph during the extended sales period 
        shall not attach until 10 days after the application.
            (D) Cancellation.--During the extended period, a producer 
        may cancel a catastrophic risk protection policy if--
                (i) the policy is a continuation of a policy that was 
            obtained for a previous crop year; and
                (ii) the cancellation request is made before the 
            acreage reporting date for the policy for the 1996 crop 
            year.
    (b) 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.
        (3) Duration.--A pilot project under this paragraph shall be of 
    two years' duration.
    (c) Crop Insurance for Nursery 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 nursery crops.--Not later than 2 years 
        after the date of enactment of this subparagraph, the 
        Corporation shall conduct a study and limited pilot program on 
        the feasibility of insuring nursery crops.''.
    (d) 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.''.
    (e) Funding.--
        (1) Mandatory expenses.--Section 516(a)(2) of the Federal Crop 
    Insurance Act (7 U.S.C. 1516(a)(2)) is amended--
            (A) by inserting ``and'' at the end of subparagraph (A);
            (B) by striking ``; and'' at the end of subparagraph (B) 
        and inserting a period; and
            (C) by striking subparagraph (C).
        (2) Funding of sales commissions.--Section 516(b) of the 
    Federal Crop Insurance Act (7 U.S.C. 1516(b)) is amended--
            (A) in paragraph (1)--
                (i) by striking ``(A) In general'' and all that follows 
            through ``subparagraph (B), in'' and inserting ``In''; and
                (ii) by striking subparagraph (B); and
            (B) in paragraph (2)(B), by striking ``subject to paragraph 
        (1)(B),''.
        (3) Other expenses.--Section 516(b)(2)(A) of the Federal Crop 
    Insurance Act (7 U.S.C. 1516(b)(2)(A)) is amended by striking ``, 
    noninsured assistance benefits,''.
    (f) Limitation on Multiple Benefits for Same Loss.--Section 508 of 
the Federal Crop Insurance Act (7 U.S.C. 1508) is amended by adding at 
the end the following:
    ``(n) Limitation on Multiple Benefits for Same Loss.--If a producer 
who is eligible to receive benefits under catastrophic risk protection 
under subsection (b) is also eligible to receive assistance for the 
same loss under any other program administered by the Secretary, the 
producer shall be required to elect whether to receive benefits under 
this title or under the other program, but not both. A producer who 
purchases additional coverage under subsection (c) may also receive 
assistance for the same loss under other programs administered by the 
Secretary, except that the amount received for the loss under the 
additional coverage together with the amount received under the other 
programs may not exceed the amount of the actual loss of the 
producer.''.

SEC. 194. ESTABLISHMENT OF OFFICE OF RISK MANAGEMENT.

    (a) Establishment.--The Department of Agriculture Reorganization 
Act of 1994 is amended by inserting after section 226 (7 U.S.C. 6932) 
the following new section:

``SEC. 226A. OFFICE OF RISK MANAGEMENT.

    ``(a) Establishment.--Subject to subsection (e), the Secretary 
shall establish and maintain in the Department an independent Office of 
Risk Management.
    ``(b) Functions of the Office of Risk Management.--The Office of 
Risk Management shall have jurisdiction over the following functions:
        ``(1) Supervision of the Federal Crop Insurance Corporation.
        ``(2) Administration and oversight of all aspects, including 
    delivery through local offices of the Department, of all programs 
    authorized under the Federal Crop Insurance Act (7 U.S.C. 1501 et 
    seq.).
        ``(3) Any pilot or other programs involving revenue insurance, 
    risk management savings accounts, or the use of the futures market 
    to manage risk and support farm income that may be established 
    under the Federal Crop Insurance Act or other law.
        ``(4) Such other functions as the Secretary considers 
    appropriate.
    ``(c) Administrator.--
        ``(1) Appointment.--The Office of Risk Management shall be 
    headed by an Administrator who shall be appointed by the Secretary.
        ``(2) Manager.--The Administrator of the Office of Risk 
    Management shall also serve as Manager of the Federal Crop 
    Insurance Corporation.
    ``(d) Resources.--
        ``(1) Functional coordination.--Certain functions of the Office 
    of Risk Management, such as human resources, public affairs, and 
    legislative affairs, may be provided by a consolidation of such 
    functions under the Under Secretary of Agriculture for Farm and 
    Foreign Agricultural Services.
        ``(2) Minimum provisions.--Notwithstanding paragraph (1) or any 
    other provision of law or order of the Secretary, the Secretary 
    shall provide the Office of Risk Management with human and capital 
    resources sufficient for the Office to carry out its functions in a 
    timely and efficient manner.''.
    (b) Fiscal Year 1996 Funding.--From funds appropriated for the 
salaries and expenses of the Consolidated Farm Service Agency in the 
Agriculture, Rural Development, Food and Drug Administration, and 
Related Agencies Appropriations Act, 1996 (Public Law 104-37), the 
Secretary of Agriculture may use such sums as necessary for the 
salaries and expenses of the Office of Risk Management established 
under subsection (a).
    (c) Conforming Amendment.--Section 226(b) of the Act (7 U.S.C. 
6932(b)) is amended by striking paragraph (2).

SEC. 195. 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 wheat, 
        feed grains, soybeans, or such other commodity as the Secretary 
        considers appropriate may elect to receive insurance against 
        loss of revenue, as determined by the Secretary.
            ``(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 actuarially sound; and
                ``(iv) require the payment of premiums and 
            administrative fees by an insured producer.''.

SEC. 196. ADMINISTRATION AND OPERATION OF NONINSURED CROP ASSISTANCE 
              PROGRAM.

    (a) Operation and Administration of Program.--
        (1) In general.--In the case of an eligible crop described in 
    paragraph (2), the Secretary of Agriculture shall operate a 
    noninsured crop disaster assistance program to provide coverage 
    equivalent to the catastrophic risk protection otherwise available 
    under section 508(b) of the Federal Crop Insurance Act (7 U.S.C. 
    1508(b)). The Secretary shall carry out this section through the 
    Consolidated Farm Service Agency (in this section referred to as 
    the ``Agency'').
        (2) Eligible crops.--
            (A) In general.--In this section, the term ``eligible 
        crop'' means each commercial crop or other agricultural 
        commodity (except livestock)--
                (i) for which catastrophic risk protection under 
            section 508(b) of the Federal Crop Insurance Act (7 U.S.C. 
            1508(b)) is not available; and
                (ii) that is produced for food or fiber.
            (B) Crops specifically included.--The term ``eligible 
        crop'' shall include floricultural, ornamental nursery, and 
        Christmas tree crops, turfgrass sod, seed crops, aquaculture 
        (including ornamental fish), and industrial crops.
        (3) Cause of loss.--To qualify for assistance under this 
    section, the losses of the noninsured commodity shall be due to 
    drought, flood, or other natural disaster, as determined by the 
    Secretary.
    (b) Application for Noninsured Crop Disaster Assistance.--
        (1) Timely application.--To be eligible for assistance under 
    this section, a producer shall submit an application for noninsured 
    crop disaster assistance at a local office of the Department. The 
    application shall be in such form, contain such information, and be 
    submitted at such time as the Secretary may require.
        (2) Records.--A producer shall provide records, as required by 
    the Secretary, of crop acreage, acreage yields, and production.
        (3) Acreage reports.--A producer shall provide reports on 
    acreage planted or prevented from being planted, as required by the 
    Secretary, by the designated acreage reporting date for the crop 
    and location as established by the Secretary.
    (c) Loss Requirements.--
        (1) Required area loss.--A producer of an eligible crop shall 
    not receive noninsured crop disaster assistance unless the average 
    yield for that crop, or an equivalent measure in the event yield 
    data are not available, in an area falls below 65 percent of the 
    expected area yield, as established by the Secretary.
        (2) Prevented planting.--Subject to paragraph (1), the 
    Secretary shall make a prevented planting noninsured crop disaster 
    assistance payment if the producer is prevented from planting more 
    than 35 percent of the acreage intended for the eligible crop 
    because of drought, flood, or other natural disaster, as determined 
    by the Secretary.
        (3) Reduced yields.--Subject to paragraph (1), the Secretary 
    shall make a reduced yield noninsured crop disaster assistance 
    payment to a producer if the total quantity of the eligible crop 
    that the producer is able to harvest on any farm is, because of 
    drought, flood, or other natural disaster as determined by the 
    Secretary, less than 50 percent of the expected individual yield 
    for the crop, as determined by the Secretary, factored for the 
    interest of the producer for the crop.
    (d) Payment.--The Secretary shall make available to a producer 
eligible for noninsured assistance under this section a payment 
computed by multiplying--
        (1) the quantity that is less than 50 percent of the 
    established yield for the crop; by
        (2)(A) in the case of each of the 1996 through 1998 crop years, 
    60 percent of the average market price for the crop (or any 
    comparable coverage determined by the Secretary); or
        (B) in the case of each of the 1999 and subsequent crop years, 
    55 percent of the average market price for the crop (or any 
    comparable coverage determined by the Secretary); by
        (3) a payment rate for the type of crop (as determined by the 
    Secretary) that--
            (A) in the case of a crop that is produced with a 
        significant and variable harvesting expense, reflects the 
        decreasing cost incurred in the production cycle for the crop 
        that is--
                (i) harvested;
                (ii) planted but not harvested; and
                (iii) prevented from being planted because of drought, 
            flood, or other natural disaster (as determined by the 
            Secretary); and
            (B) in the case of a crop that is not produced with a 
        significant and variable harvesting expense, as determined by 
        the Secretary.
    (e) Yield Determinations.--
        (1) Establishment.--The Secretary shall establish farm yields 
    for purposes of providing noninsured crop disaster assistance under 
    this section.
        (2) Actual production history.--The Secretary shall determine 
    yield coverage using the actual production history of the producer 
    over a period of not less than the 4 previous consecutive crop 
    years and not more than 10 consecutive crop years. Subject to 
    paragraph (3), the yield for the year in which noninsured crop 
    disaster assistance is sought shall be equal to the average of the 
    actual production history of the producer during the period 
    considered.
        (3) Assignment of yield.--If a producer does not submit 
    adequate documentation of production history to determine a crop 
    yield under paragraph (2), the Secretary shall assign to the 
    producer a yield equal to not less than 65 percent of the 
    transitional yield of the producer (adjusted to reflect actual 
    production reflected in the records acceptable to the Secretary for 
    continuous years), as specified in regulations issued by the 
    Secretary based on production history requirements.
        (4) Prohibition on assigned yields in certain counties.--
            (A) In general.--
                (i) Documentation.--If sufficient data are available to 
            demonstrate that the acreage of a crop in a county for the 
            crop year has increased by more than 100 percent over any 
            year in the preceding 7 crop years or, if data are not 
            available, if the acreage of the crop in the county has 
            increased significantly from the previous crop years, a 
            producer must provide such detailed documentation of 
            production costs, acres planted, and yield for the crop 
            year for which benefits are being claimed as is required by 
            the Secretary. If the Secretary determines that the 
            documentation provided is not sufficient, the Secretary may 
            require documenting proof that the crop, had the crop been 
            harvested, could have been marketed at a reasonable price.
                (ii) Prohibition.--Except as provided in subparagraph 
            (B), a producer who produces a crop on a farm located in a 
            county described in clause (i) may not obtain an assigned 
            yield.
            (B) Exception.--A crop or a producer shall not be subject 
        to this subsection if--
                (i) the planted acreage of the producer for the crop 
            has been inspected by a third party acceptable to the 
            Secretary; or
                (ii)(I) the County Executive Director and the State 
            Executive Director recommend an exemption from the 
            requirement to the Administrator of the Agency; and
                (II) the Administrator approves the recommendation.
        (5) Limitation on receipt of subsequent assigned yield.--A 
    producer who receives an assigned yield for the current year of a 
    natural disaster because required production records were not 
    submitted to the local office of the Department shall not be 
    eligible for an assigned yield for the year of the next natural 
    disaster unless the required production records of the previous 1 
    or more years (as applicable) are provided to the local office.
        (6) Yield variations due to different farming practices.--The 
    Secretary shall ensure that noninsured crop disaster assistance 
    accurately reflects significant yield variations due to different 
    farming practices, such as between irrigated and nonirrigated 
    acreage.
    (f) Contract Payments.--A producer who has received a guaranteed 
payment for production, as opposed to delivery, of a crop pursuant to a 
contract shall have the production of the producer adjusted upward by 
the amount of the production equal to the amount of the contract 
payment received.
    (g) Use of Commodity Credit Corporation.--The Secretary may use the 
funds of the Commodity Credit Corporation to carry out this section.
    (h) Exclusions.--Noninsured crop disaster assistance under this 
section shall not cover losses due to--
        (1) the neglect or malfeasance of the producer;
        (2) the failure of the producer to reseed to the same crop in 
    those areas and under such circumstances where it is customary to 
    reseed; or
        (3) the failure of the producer to follow good farming 
    practices, as determined by the Secretary.
    (i) Payment and Income Limitations.--
        (1) Definitions.--In this subsection:
            (A) Person.--The term ``person'' has the meaning provided 
        the term in regulations issued by the Secretary. The 
        regulations shall conform, to the extent practicable, to the 
        regulations defining the term ``person'' issued under section 
        1001 of the Food Security Act of 1985 (7 U.S.C. 1308).
            (B) Qualifying gross revenues.--The term ``qualifying gross 
        revenues'' means--
                (i) if a majority of the gross revenue of the person is 
            received from farming, ranching, and forestry operations, 
            the gross revenue from the farming, ranching, and forestry 
            operations of the person; and
                (ii) if less than a majority of the gross revenue of 
            the person is received from farming, ranching, and forestry 
            operations, the gross revenue of the person from all 
            sources.
        (2) Payment limitation.--The total amount of payments that a 
    person shall be entitled to receive annually under this section may 
    not exceed $100,000.
        (3) Limitation on multiple benefits for same loss.--If a 
    producer who is eligible to receive benefits under this section is 
    also eligible to receive assistance for the same loss under any 
    other program administered by the Secretary, the producer shall be 
    required to elect whether to receive benefits under this section or 
    under the other program, but not both.
        (4) Income limitation.--A person who has qualifying gross 
    revenues in excess of the amount specified in section 2266(a) of 
    the Food, Agriculture, Conservation, and Trade Act of 1990 (7 
    U.S.C. 1421 note) (as in effect on November 28, 1990) during the 
    taxable year (as determined by the Secretary) shall not be eligible 
    to receive any noninsured assistance payment under this section.
        (5) Regulations.--The Secretary shall issue regulations 
    prescribing such rules as the Secretary determines necessary to 
    ensure a fair and equitable application of section 1001 of the Food 
    Security Act of 1985 (7 U.S.C. 1308), the general payment 
    limitation regulations of the Secretary, and the limitations 
    established under this subsection.
    (j) Conforming Repeal.--Section 519 of the Federal Crop Insurance 
Act (7 U.S.C. 1519) is repealed.

                      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 is amended by striking subsection (e) (19 U.S.C. 3611).

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 commercial market for a 
            United States agricultural commodity 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 may 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 may 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), an eligible organization described in subsection (d) 
    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)(1), by striking ``a private voluntary 
    organization or cooperative'' each place it appears 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 of the Agricultural Trade Development and Assistance 
Act of 1954 (7 U.S.C. 1724) is amended--
        (1) in subsection (a)--
            (A) 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.'';
            (B) 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
            (C) in paragraph (3), by adding at the end the following: 
        ``No waiver shall be made before the beginning of the 
        applicable fiscal year.''; and
        (2) in subsection (b)(1), by inserting before the period at the 
    end the following: ``and that not less than 50 percent of the 
    quantity of the bagged commodities that are whole grain commodities 
    be bagged in the United States''.

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 striking ``this Act'' and inserting ``titles II and 
        III''; 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 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.--
        ``(1) In general.--Except as provided in paragraph (2) and 
    notwithstanding any other provision of law, the President may 
    direct that 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.
        ``(2) Title iii funds.--The President may direct that up to 50 
    percent of the funds available for any fiscal year for carrying out 
    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 striking ``this Act'' each 
place it appears and inserting ``title III''.

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.--Subject to the availability of practical 
technology and to cost effectiveness, not later than September 30, 
1997, the Secretary, in consultation with the Administrator, shall 
establish a micronutrient fortification pilot program under this Act. 
The purpose 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 is 
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 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. 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), by striking paragraph (6) and inserting 
    the following:
        ``(6) to the extent that local currencies can be used to meet 
    the costs of a program established under this section, augment 
    funds of the United States that are available for such a program 
    through the use of foreign currencies that accrue from the sale of 
    agricultural commodities under this Act, and local currencies 
    generated from other types of foreign assistance activities, within 
    the country where the program is being conducted.''; and
        (2) in subsection (c)--
            (A) by striking ``0.2'' and inserting ``0.4'';
            (B) by striking ``1991 through 1995'' and inserting ``1996 
        through 2002''; and
            (C) by striking ``0.1'' and inserting ``0.2''.

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, totaling 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 date of enactment 
        of the Federal Agriculture Improvement and Reform 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 date of enactment of 
        the Federal Agriculture Improvement and Reform 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 (h), 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 
        appropriations Act.
    ``(c) Release of Eligible Commodities.--
        ``(1) Emergency assistance.--
            ``(A) In general.--Notwithstanding paragraph (2), to meet 
        unanticipated need, the Secretary may release eligible 
        commodities in any fiscal year, without regard to the 
        availability of domestic supply of the commodities, to provide 
        emergency assistance to developing countries under title II of 
        the Agricultural Trade Development and Assistance Act of 1954 
        (7 U.S.C. 1721 et seq.).
            ``(B) Release for emergency assistance.--If the eligible 
        commodities needed to meet unanticipated need cannot be made 
        available in a timely manner under normal means for obtaining 
        eligible commodities for food assistance because of 
        unanticipated need for emergency assistance as provided under 
        section 202(a) of the Agricultural Trade Development and 
        Assistance Act of 1954 (7 U.S.C. 1722(a)), the Secretary may in 
        any fiscal year release from the reserve--
                ``(i) up to 500,000 metric tons of wheat or the 
            equivalent value of eligible commodities other than wheat; 
            and
                ``(ii) up to 500,000 metric tons of any eligible 
            commodities under this paragraph that could have been 
            released but were not released in prior fiscal years.
            ``(C) Waiver of minimum tonnage requirements.--Nothing in 
        this paragraph shall require a waiver under section 204(a)(3) 
        of the Agricultural Trade Development and Assistance Act of 
        1954 (7 U.S.C. 1724(a)(3)) as a prerequisite for the release of 
        eligible commodities under this paragraph.
        ``(2) Emergency food assistance.--Notwithstanding any other 
    provision of 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)).
        ``(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.
        ``(5) Use of normal commercial practices.--To the maximum 
    extent practicable consistent with the fulfillment of the purposes 
    of this section and the effective and efficient administration of 
    this section, the Secretary shall use the usual and customary 
    channels, facilities, arrangements, and practices of trade and 
    commerce to carry out this subsection.
    ``(d) 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.
    ``(e) 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).
    ``(f) 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.
            ``(C) Source of funds.--The reimbursement may be made from 
        funds appropriated for subsequent fiscal years.
    ``(g) Finality of Determination.--Any determination by the 
Secretary under this section shall be final.
    ``(h) 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 Agricultural 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), and (f)(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)(B), 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 ``for 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) Increase the value of United States agricultural exports 
    each year.
        ``(2) Increase the value of United States agricultural exports 
    each year at a faster rate than the rate of increase in the value 
    of overall world export trade in agricultural products.
        ``(3) Increase the value of United States high-value and value-
    added agricultural exports each year.
        ``(4) Increase the value of United States high-value and value-
    added agricultural exports each year at a faster rate than the rate 
    of increase in the value of overall world export trade in high-
    value and value-added agricultural products.
        ``(5) Ensure that to the extent practicable--
            ``(A) all obligations undertaken in the Uruguay Round 
        Agreement on Agriculture that significantly increase access for 
        United States agricultural commodities are implemented to the 
        extent required by the Uruguay Round Agreements; or
            ``(B) applicable United States 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 annually 
    identify as priority markets--
            ``(A) those markets in which imports of agricultural 
        products show the greatest potential for increase; 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.
        ``(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).''.
    (b) Sense of Congress.--It is the sense of Congress that--
        (1) the Committee on Agriculture of the House of 
    Representatives and the Committee on Agriculture, Nutrition, and 
    Forestry of the Senate should conduct a thorough review of 
    agricultural export and food aid programs not later than December 
    31, 1998; and
        (2) the review should examine what changes, if any, need to be 
    made in the programs as a result of the effects of the Agricultural 
    Market Transition Act, the Uruguay Round Agreements, changing world 
    market conditions, and such other factors as the committees 
    consider appropriate.
    (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. IMPLEMENTATION OF COMMITMENTS UNDER URUGUAY ROUND AGREEMENTS.

    (a) In General.--Title I of the Agricultural Trade Act of 1978 (7 
U.S.C. 5601 et seq.) is amended by adding at the end the following:

``SEC. 106. IMPLEMENTATION OF COMMITMENTS UNDER URUGUAY ROUND 
              AGREEMENTS.

    ``Not later than September 30 of each year, the Secretary shall 
evaluate whether the obligations undertaken by foreign countries under 
the Uruguay Round Agreement on Agriculture are being fully implemented. 
If the Secretary has reason to believe (based on the evaluation) that 
any foreign country, by not implementing the obligations of the 
country, may be significantly constraining an opportunity for United 
States agricultural exports, the Secretary shall--
        ``(1) submit the evaluation to the United States Trade 
    Representative; and
        ``(2) transmit a copy of the evaluation 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.''.
    (b) Monitoring Compliance With Sanitary and Phytosanitary 
Measures.--Section 414 of the Agricultural Trade Act of 1978 (7 U.S.C. 
5674) is amended by adding at the end the following:
    ``(c) Monitoring Compliance With Sanitary and Phytosanitary 
Measures.--The Secretary shall monitor the compliance of World Trade 
Organization member countries with the sanitary and phytosanitary 
measures of the Agreement on Agriculture of the Uruguay Round of 
Multilateral Trade Negotiations of the General Agreement on Tariffs and 
Trade. If the Secretary has reason to believe that any country may have 
failed to meet the commitment on sanitary and phytosanitary measures 
under the Agreement in a manner that adversely impacts the exports of a 
United States agricultural commodity, the Secretary shall--
        ``(1) provide such information to the United States Trade 
    Representative of the circumstances surrounding the matter arising 
    under this subsection; and
        ``(2) with respect to any such circumstances that the Secretary 
    considers to have a continuing adverse effect on United States 
    agricultural exports, report 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--
            ``(A) that a country may have failed to meet the sanitary 
        and phytosanitary commitments; and
            ``(B) any notice given by the Secretary to the United 
        States Trade Representative.''.

SEC. 243. 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) whether the country is addressing issues such as--
                ``(i) the convertibility of the currency of the 
            country;
                ``(ii) adequate legal protection for foreign 
            investments;
                ``(iii) the viability of the financial markets of the 
            country; and
                ``(iv) adequate legal protection for the private 
            property rights of citizens of the country; or
            ``(C) 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 Commodities.--The Commodity Credit 
Corporation shall finance or guarantee under this section only United 
States agricultural commodities.'';
        (4) in subsection (i)--
            (A) by striking paragraph (1);
            (B) by striking ``Institutions.--A financial'' and 
        inserting the following: ``Institutions.--
        ``(1) In general.--A financial'';
            (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 of the Agricultural Trade Act of 
1978 (7 U.S.C. 5641) is amended by striking subsection (b) and 
inserting the following:
    ``(b) Export Credit Guarantee Programs.--
        ``(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.
        ``(2) Limitation on origination fee.--Notwithstanding any other 
    provision of law, the Secretary may not charge an origination fee 
    with respect to any credit guarantee transaction under section 
    202(a) in excess of an amount equal to 1 percent of the amount of 
    credit to be guaranteed under the transaction, except with respect 
    to an export credit guarantee transaction pursuant to section 
    1542(b) of the Food, Agriculture, Conservation, and Trade Act of 
    1990 (Public Law 101-624; 7 U.S.C. 5622 note).''.
    (c) Definition of United States Agricultural Commodity.--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 the agricultural components 
            of which by weight, excluding packaging and added 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 date of 
enactment of this Act, the Secretary of Agriculture shall issue 
regulations to carry out the amendments made by this section.

SEC. 244. MARKET ACCESS PROGRAM.

    (a) Change of Name.--
        (1) In general.--Section 203 of the Agricultural Trade Act of 
    1978 (7 U.S.C. 5623) is amended--
            (A) in the section heading, by striking ``market promotion 
        program'' and inserting ``market access program''; and
            (B) by striking ``marketing promotion program'' each place 
        it appears and inserting ``market access program''.
        (2) Conforming amendments.--
            (A) Section 1302 of the Omnibus Budget Reconciliation Act 
        of 1993 (Public Law 103-66; 7 U.S.C. 5623) is amended--
                (i) in the section heading, by striking ``market 
            promotion program'' and inserting ``market access 
            program''; and
                (ii) in subsection (b), by striking ``market promotion 
            program'' each place it appears and inserting ``market 
            access program''.
            (B) Section 211(c) of the Agricultural Trade Act of 1978 (7 
        U.S.C. 5641(c)) is amended--
                (i) in the subsection heading, by striking ``Marketing 
            Promotion Programs'' and inserting ``Market Access 
            Programs'';
                (ii) by striking ``market promotion activities'' and 
            inserting ``market access activities'';
                (iii) in paragraph (1), by striking ``market 
            development program'' and inserting ``market access 
            program''; and
                (iv) in paragraph (2), by striking ``marketing 
            promotion program'' and inserting ``market access 
            program''.
    (b) Use of Funds.--Section 203(f) of the Agricultural Trade Act of 
1978 (7 U.S.C. 5623(f)) is amended by adding at the end the following:
        ``(4) Use of funds.--Funds made available to carry out this 
    section--
            ``(A) shall not be used to provide direct assistance to any 
        foreign for-profit corporation for the corporation's use in 
        promoting foreign-produced products;
            ``(B) shall not be used to provide direct assistance to any 
        for-profit corporation that is not recognized as a small-
        business concern described in section 3(a) of the Small 
        Business Act (15 U.S.C. 632(a)), excluding--
                ``(i) a cooperative;
                ``(ii) an association described in the first section of 
            the Act entitled `An Act To authorize association of 
            producers of agricultural products', approved February 18, 
            1922 (7 U.S.C. 291); and
                ``(iii) a nonprofit trade association; and
            ``(C) may be used by a United States trade association, 
        cooperative, or small business for individual branded 
        promotional activity related to a United States branded 
        product, if the beneficiaries of the activity have provided 
        funds for the activity in an amount that is at least equivalent 
        to the amount of assistance provided under this section.''.
    (c) Funding.--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 $90,000,000 for each of fiscal years 1996 through 
    2002,''.

SEC. 245. EXPORT ENHANCEMENT PROGRAM.

    (a) In General.--Effective October 1, 1995, section 301(e) of the 
Agricultural Trade Act of 1978 (7 U.S.C. 5651(e)) is amended by 
striking paragraph (1) and inserting the following:
        ``(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) $250,000,000 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.''.
    (b) Priority Funding for Intermediate Products.--Section 301 of the 
Agricultural Trade Act of 1978 (7 U.S.C. 5651) is amended by adding at 
the end the following:
    ``(h) Priority Funding for Intermediate Products.--
        ``(1) In general.--Effective beginning in fiscal year 1996, and 
    consistent, as determined by the Secretary, with the obligations 
    and reduction commitments undertaken by the United States under the 
    Uruguay Round Agreements, the Secretary may make available not more 
    than $100,000,000 for each fiscal year under this section for the 
    sale of intermediate agricultural products in sufficient quantities 
    to attain the volume of export sales consistent with the volume of 
    intermediate agricultural products exported by the United States 
    during the Uruguay Round base period years of 1986 through 1990.
        ``(2) Additional assistance.--Notwithstanding paragraph (1), if 
    the export sale of any intermediate agricultural product attains 
    the volume of export sales consistent with the volume of the 
    intermediate agricultural product exported by the United States 
    during the Uruguay Round base period years of 1986 through 1990, 
    the Secretary may make available additional amounts under this 
    section for the encouragement of export sales of the intermediate 
    agricultural product.''.

SEC. 246. ARRIVAL CERTIFICATION.

    Section 401 of the Agricultural Trade Act of 1978 (7 U.S.C. 5661) 
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 is the intended destination of the commodity.''.

SEC. 247. 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. 248. REGULATIONS.

    Section 404 of the Agricultural Trade Act of 1978 (7 U.S.C. 5664) 
is repealed.

SEC. 249. TRADE COMPENSATION AND ASSISTANCE PROGRAMS.

    Subtitle B of title IV of the Agricultural Trade Act of 1978 (7 
U.S.C. 5671 et seq.) is amended by adding at the end the following:

``SEC. 417. TRADE COMPENSATION AND ASSISTANCE PROGRAMS.

    ``(a) In General.--Except as provided in subsection (f), 
notwithstanding any other provision of law, if, after the date of 
enactment 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 90 days after the date on which the 
suspension is imposed on United States exports no other country with an 
agricultural economic interest agrees to participate in the suspension, 
the Secretary shall carry out a trade compensation assistance program 
in accordance with this section (referred to in this section as a 
`program').
    ``(b) Compensation or Provision of Funds.--Under a program, the 
Secretary shall, based on an evaluation by the Secretary of the method 
most likely to produce the greatest compensatory benefit for producers 
of the commodity involved in the suspension--
        ``(1) compensate producers of the commodity by making payments 
    available to producers, as provided by subsection (c)(1); or
        ``(2) make available an amount of funds calculated under 
    subsection (c)(2), to promote agricultural exports or provide 
    agricultural commodities to developing countries under any 
    authorities available to the Secretary.
    ``(c) Determination of Amount of Compensation or Funds.--
        ``(1) Compensation.--If the Secretary makes payments available 
    to producers under subsection (b)(1), the amount of the payment 
    shall be determined by the Secretary based on the Secretary's 
    estimate of the loss suffered by producers of the commodity 
    involved due to any decrease in the price of the commodity as a 
    result of the suspension.
        ``(2) Determination of amount of funds.--For each fiscal year 
    of a program, the amount of funds made available under subsection 
    (b)(2) 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.--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 3 fiscal 
years.
    ``(e) Commodity Credit Corporation.--The Secretary shall use funds 
of the Commodity Credit Corporation to carry out this section.
    ``(f) Exception to Carrying Out a Program.--This section shall not 
apply to any suspension of trade due to a war or armed hostility.
    ``(g) Partial Year Embargoes.--If the Secretary makes funds 
available under subsection (b)(2), 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)(2) 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 following fiscal year (in addition to any 
funds otherwise required under a program to be made available in the 
following fiscal year).
    ``(h) Short Supply Embargoes.--If the President or any other member 
of the executive branch causes exports to be suspended based on a 
determination of short supply, the Secretary shall carry out section 
1002 of the Food and Agriculture Act of 1977 (7 U.S.C. 1310).''.

SEC. 250. 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. DUTIES OF 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. 251. 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''.

SEC. 252. 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.''.

        Subtitle C--Miscellaneous Agricultural Trade Provisions

SEC. 261. EDWARD R. MADIGAN UNITED STATES AGRICULTURAL EXPORT 
              EXCELLENCE AWARD.

    (a) Findings.--Congress finds that--
        (1) United States producers of agricultural products are some 
    of the most productive and efficient producers of agricultural 
    products in the world;
        (2) continued growth and expansion of markets for United States 
    agricultural exports is crucial to the continued development and 
    economic well-being of rural areas of the United States and the 
    agricultural sector of the United States economy;
        (3) in recent years, United States agricultural exports have 
    steadily increased, surpassing $54,000,000,000 in value in 1995;
        (4) as United States agricultural producers move toward a 
    market-oriented system in which planting and other decisions by 
    producers are driven by national and international market signals, 
    developing new and expanding agricultural export markets is vital 
    to maintaining a vibrant and healthy agricultural sector and rural 
    economy; and
        (5) a United States agricultural export excellence award will 
    increase United States agricultural exports by--
            (A) identifying efforts of United States entities to 
        develop and expand markets for United States agricultural 
        exports through the development of new products and services 
        and through the use of innovative marketing techniques;
            (B) recognizing achievements of those who have exhibited or 
        supported entrepreneurial efforts to expand and create new 
        markets for United States agricultural exports or increase the 
        volume or value of United States agricultural exports; and
            (C) disseminating information on successful methods used to 
        develop and expand markets for United States agricultural 
        exports.
    (b) Establishment.--There is established the Edward R. Madigan 
United States Agricultural Export Excellence Award, which shall be 
evidenced by a medal bearing the inscription ``Edward R. Madigan United 
States Agricultural Export Excellence Award''. The medal shall be of 
such design and materials and bear such additional inscriptions as the 
Secretary of Agriculture (referred to in this section as the 
``Secretary'') may prescribe.
    (c) Selection of Recipient.--The President or the Secretary (on the 
basis of recommendations received from the board established under 
subsection (h)) shall periodically provide the award to companies and 
other entities that in the judgment of the President or the Secretary 
substantially encourage entrepreneurial efforts in the food and 
agriculture sector for advancing United States agricultural exports.
    (d) Presentation of Award.--The presentation of the award shall be 
made by the President or the Secretary with such ceremonies as the 
President or the Secretary considers proper.
    (e) Publication of Award.--An entity to which an award is made 
under this section may publicize the receipt of the award by the entity 
and use the award in advertising of the entity.
    (f) Categories for Which Award May Be Given.--Separate awards shall 
be made to qualifying entities in each of the following categories:
        (1) Development of new products or services for agricultural 
    export markets.
        (2) Development of new agricultural export markets.
        (3) Creative marketing of products or services in agricultural 
    export markets.
    (g) Criteria for Qualification.--An entity may qualify for an award 
under this section only if the entity--
        (1)(A) applies to the board established under subsection (h) in 
    writing for the award; or
        (B) is recommended for the award by a Governor of a State;
        (2)(A) has exhibited significant entrepreneurial effort to 
    create new markets for United States agricultural exports or 
    increase United States agricultural exports; or
        (B) has provided significant assistance to others in an effort 
    to create new markets for United States agricultural exports or 
    increase United States agricultural exports;
        (3) has not received another award in the same category under 
    subsection (f) during the preceding 5-year period; and
        (4) meets such other requirements and specifications as the 
    Secretary determines are appropriate to achieve the objectives of 
    this section.
    (h) Board.--
        (1) Selection.--The Secretary shall appoint a board of 
    evaluators, consisting of at least 5 individuals from the private 
    sector selected for their knowledge and experience in exporting 
    United States agricultural products.
        (2) Meetings.--The board shall meet at least once annually to 
    review and evaluate all applicants and entities recommended by 
    States under subsection (g)(1).
        (3) Recommendations of board.--The board shall report its 
    recommendations concerning the making of the award to the 
    Secretary.
        (4) Term.--Each member of the board may serve a term of not to 
    exceed 3 years.
    (i) Funding.--The Secretary may seek and accept gifts from public 
and private sources to carry out this section.

SEC. 262. REPORTING REQUIREMENTS RELATING TO TOBACCO.

    Section 214 of the Tobacco Adjustment Act of 1983 (7 U.S.C. 509) is 
repealed.

SEC. 263. 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. 264. 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 (7)--
                (i) in subparagraph (D)(iv), by striking ``one year of 
            acquisition'' and all that follows through the period at 
            the end 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.''; and
                (ii) by striking the sentence following subparagraph 
            (F) and inserting the following: ``The Secretary may 
            approve the use of proceeds or services realized from the 
            sale or barter of a commodity furnished under this 
            subsection by a nonprofit voluntary agency, cooperative, or 
            intergovernmental agency or organization to meet 
            administrative expenses incurred in connection with 
            activities undertaken under this subsection.'';
            (B) in paragraph (8), by striking subparagraph (C); and
            (C) by striking paragraphs (10), (11), and (12); and
        (2) by striking subsection (c).

SEC. 265. 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) Technical 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. 266. POLICY ON EXPANSION OF INTERNATIONAL MARKETS.

    Section 1207 of the Agriculture and Food Act of 1981 (7 U.S.C. 
1736m) is repealed.

SEC. 267. 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. 268. POLICY ON TRADE LIBERALIZATION.

    Section 1122 of the Food Security Act of 1985 (7 U.S.C. 1736q) is 
repealed.

SEC. 269. 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 accounted 
    for $54,000,000,000 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 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 prices below domestic market prices 
    or prices below their full costs of acquiring and delivering 
    agricultural products to the foreign markets; and
        ``(4) encouraging government policies that avoid price-
    depressing surpluses.''.

SEC. 270. POLICY ON UNFAIR TRADE PRACTICES.

    Section 1164 of the Food Security Act of 1985 (Public Law 99-198; 
99 Stat. 1499) is repealed.

SEC. 271. 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. 272. 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. 273. 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. 274. ORDERLY LIQUIDATION OF STOCKS.

    Sections 201 and 207 of the Agricultural Act of 1956 (7 U.S.C. 1851 
and 1857) are repealed.

SEC. 275. SALES OF EXTRA LONG STAPLE COTTON.

    Section 202 of the Agricultural Act of 1956 (7 U.S.C. 1852) is 
repealed.

SEC. 276. 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. 277. 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) in subsection (c), by striking ``emerging democracy'' 
        each place it appears 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); and
                    (V) by redesignating subparagraphs (G), (H), and 
                (I) as subparagraphs (F), (G), and (H), respectively;

                (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. 278. 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 of the International Cooperation 
and Development Program Area of the Foreign Agriculture Service, 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 are not incurred for 
information technology systems.''.

SEC. 279. 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.--The Secretary, consistent with United 
States international obligations, shall establish standards for the 
labeling of sheep carcasses, parts of sheep carcasses, sheepmeat, and 
sheepmeat food products.''.

SEC. 280. IMPORT ASSISTANCE FOR CBI BENEFICIARY COUNTRIES AND THE 
              PHILIPPINES.

    Section 583 of Public Law 100-202 (101 Stat. 1329-182) is repealed.

SEC. 281. STUDIES, REPORTS, AND OTHER PROVISIONS.

    (a) In General.--Sections 1551 through 1555, section 1558, and 
section 1559 of subtitle E of title XV of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (Public Law 101-624; 104 Stat. 
3696) (as redesignated by section 1011(d) of the Federal Reports 
Elimination and Sunset Act of 1995 (Public Law 104-66; 109 Stat. 709)) 
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. 282. 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, the Canadian Wheat Board, the 
    New Zealand Dairy Board, and the Australian Dairy 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. 283. INTERNATIONAL COTTON ADVISORY COMMITTEE.

    (a) In General.--The President shall ensure that the Government of 
the United States participates as a full member of the International 
Cotton Advisory Committee.
    (b) Representation by the Secretary.--The Secretary of Agriculture 
shall represent the Government of the United States as a member of the 
International Cotton Advisory Committee and shall delegate the primary 
responsibility to represent the Government of the United States to 
appropriately qualified individuals.

                        TITLE III--CONSERVATION
                        Subtitle A--Definitions

SEC. 301. DEFINITIONS APPLICABLE TO HIGHLY ERODIBLE CROPLAND 
              CONSERVATION.

    (a) Conservation Plan and Conservation System.--Section 1201(a) of 
the Food Security Act of 1985 (16 U.S.C. 3801(a)) is amended--
        (1) by redesignating paragraphs (2) through (16) as paragraphs 
    (4) through (18), respectively; and
        (2) by inserting after paragraph (1) the following:
        ``(2) Conservation plan.--The term `conservation plan' means 
    the document that--
            ``(A) applies to highly erodible cropland;
            ``(B) describes the conservation system applicable to the 
        highly erodible cropland and describes the decisions of the 
        person with respect to location, land use, tillage systems, and 
        conservation treatment measures and schedule; and
            ``(C) is approved by the local soil conservation district, 
        in consultation with the local committees established under 
        section 8(b)(5) of the Soil Conservation and Domestic Allotment 
        Act (16 U.S.C. 590h(b)(5)) and the Secretary, or by the 
        Secretary.
        ``(3) Conservation system.--The term `conservation system' 
    means a combination of 1 or more conservation measures or 
    management practices that--
            ``(A) are based on local resource conditions, available 
        conservation technology, and the standards and guidelines 
        contained in the Natural Resources Conservation Service field 
        office technical guides; and
            ``(B) are designed to achieve, in a cost effective and 
        technically practicable manner, a substantial reduction in soil 
        erosion or a substantial improvement in soil conditions on a 
        field or group of fields containing highly erodible cropland 
        when compared to the level of erosion or soil conditions that 
        existed before the application of the conservation measures and 
        management practices.''.
    (b) Field.--Section 1201(a) of the Food Security Act of 1985 is 
amended by striking paragraph (7) (as redesignated by subsection 
(a)(1)) and inserting the following:
        ``(7) Field.--The term `field' means a part of a farm that is 
    separated from the balance of the farm by permanent boundaries such 
    as fences, roads, permanent waterways, or other similar features. 
    At the option of the owner or operator of the farm, croplines may 
    also be used to delineate a field if farming practices make it 
    probable that the croplines are not subject to change. Any highly 
    erodible land on which an agricultural commodity is produced after 
    December 23, 1985, and that is not exempt under section 1212, shall 
    be considered as part of the field in which the land was included 
    on December 23, 1985, unless the owner and Secretary agree to 
    modification of the boundaries of the field to carry out this 
    title.''.
    (c) Highly Erodible Land.--Section 1201(a)(9) of the Food Security 
Act of 1985 (as redesignated by subsection (a)(1)) is amended by adding 
at the end the following:
            ``(C) Equations.--Not later than 60 days after the date of 
        enactment of this subparagraph, the Secretary shall publish in 
        the Federal Register the universal soil loss equation and wind 
        erosion equation used by the Department of Agriculture as of 
        that date. The Secretary may not change the equations after 
        that date except following notice and comment in a manner 
        consistent with section 553 of title 5, United States Code.''.
    (d) Conforming Amendments.--Section 1212 of the Food Security Act 
of 1985 (16 U.S.C. 3812) is amended--
        (1) in the first sentence of subsection (a)(2), by striking 
    ``that documents'' and all that follows through ``by the 
    Secretary'';
        (2) in subsection (c)(3), by striking ``based on'' and all that 
    follows through ``and the Secretary,'' and inserting ``, in which 
    case,'';
        (3) in subsection (e)(1)(A), by striking ``conservation 
    compliance plan'' and inserting ``conservation plan''; and
        (4) in subsection (f)--
            (A) in paragraph (1), by striking ``that documents'' and 
        all that follows through ``under subsection (a)'';
            (B) in paragraph (3), by striking ``prepared under 
        subsection (a)''; and
            (C) in paragraph (4), by striking ``that documents'' and 
        all that follows through ``subsection (a)''.

             Subtitle B--Highly Erodible Land Conservation

SEC. 311. PROGRAM INELIGIBILITY.

    Effective 90 days after the date of enactment of this Act, section 
1211 of the Food Security Act of 1985 (16 U.S.C. 3811) is amended--
        (1) in the matter preceding paragraph (1), by striking 
    ``following the date of enactment of this Act,'';
        (2) in paragraph (1)--
            (A) by striking subparagraph (A) and inserting the 
        following:
            ``(A) contract payments under a production flexibility 
        contract, marketing assistance loans, and any type of price 
        support or payment made available under the Agricultural Market 
        Transition Act, the Commodity Credit Corporation Charter Act 
        (15 U.S.C. 714 et seq.), or any other Act;'';
            (B) by striking subparagraph (C);
            (C) in subparagraph (D), by striking ``made under'' and all 
        that follows through ``August 14, 1989'';
            (D) in subparagraph (E), by striking ``Farmers Home 
        Administration'' and inserting ``Consolidated Farm Service 
        Agency''; and
            (E) by redesignating subparagraphs (D) and (E) as 
        subparagraphs (C) and (D), respectively; and
        (3) by striking paragraph (3) and inserting the following:
        ``(3) during the crop year--
            ``(A) a payment made pursuant to a contract entered into 
        under the environmental quality incentives program under 
        chapter 4 of subtitle D;
            ``(B) a payment under any other provision of subtitle D;
            ``(C) a payment under section 401 or 402 of the 
        Agricultural Credit Act of 1978 (16 U.S.C. 2201 and 2202); or
            ``(D) a payment, loan, or other assistance under section 3 
        or 8 of the Watershed Protection and Flood Prevention Act (16 
        U.S.C. 1003 and 1006a).''.

SEC. 312. CONSERVATION RESERVE LANDS.

    Section 1212(a)(3) of the Food Security Act of 1985 (16 U.S.C. 
3812(a)(3)) is amended by striking ``shall, if the conservation plan 
established under this subtitle for such land requires structures to be 
constructed,'' and inserting ``shall only be required to apply a 
conservation plan established under this subtitle. The person shall not 
be required to meet a higher conservation standard than the standard 
applied to other highly erodible cropland located within the same area. 
If the person's conservation plan requires structures to be 
constructed, the person shall''.

SEC. 313. GOOD FAITH EXEMPTION.

    (a) Grace Period To Resume Conservation Compliance.--Section 
1212(f)(1) of the Food Security Act of 1985 (16 U.S.C. 3812(f)(1)) is 
amended--
        (1) by striking ``Except to the extent provided in paragraph 
    (2), no'' and inserting ``No''; and
        (2) by striking ``such person has--'' and all that follows 
    through the period at the end of subparagraph (B) and inserting the 
    following: ``the person has acted in good faith and without an 
    intent to violate this subtitle. A person who meets the 
    requirements of this paragraph shall be allowed a reasonable period 
    of time, as determined by the Secretary, but not to exceed 1 year, 
    during which to implement the measures and practices necessary to 
    be considered to be actively applying the person's conservation 
    plan.''.
    (b) Special Penalties Regarding Certain Highly Erodible Cropland.--
Section 1212(f)(2) of the Food Security Act of 1985 (16 U.S.C. 
3812(f)(2)) is amended by striking ``meets the requirements of 
paragraph (1)'' and inserting ``with respect to highly erodible 
cropland that was not in production prior to December 23, 1985, and has 
acted in good faith and without an intent to violate the provisions''.
    (c) Conforming Amendment.--Section 1212(f)(4) of the Food Security 
Act of 1985 (16 U.S.C. 3812(f)(4)) is amended by striking the last 
sentence.

SEC. 314. EXPEDITED PROCEDURES FOR GRANTING VARIANCES FROM CONSERVATION 
              PLANS.

    Section 1212(f) of the Food Security Act of 1985 (16 U.S.C. 
3812(f)(4)) is amended--
        (1) in paragraph (4)(C), by striking ``problem'' and inserting 
    ``problem, including weather, pest, and disease problems''; and
        (2) by adding at the end the following:
        ``(5) Expedited procedures for temporary variances.--After 
    consultation with local conservation districts, the Secretary shall 
    establish expedited procedures for the consideration and granting 
    of temporary variances under paragraph (4)(C). If the request for a 
    temporary variance under paragraph (4)(C) involves the use of 
    practices or measures to address weather, pest, or disease 
    problems, the Secretary shall make a decision on whether to grant 
    the variance during the 30-day period beginning on the date of 
    receipt of the request. If the Secretary fails to render a decision 
    during the period, the temporary variance shall be considered 
    granted.''.

SEC. 315. DEVELOPMENT AND IMPLEMENTATION OF CONSERVATION PLANS AND 
              CONSERVATION SYSTEMS.

    (a) Development and Implementation.--The Food Security Act of 1985 
is amended--
        (1) by redesignating section 1213 (16 U.S.C. 3813) as section 
    1214; and
        (2) by inserting after section 1212 (16 U.S.C. 3812) the 
    following:

``SEC. 1213. DEVELOPMENT AND IMPLEMENTATION OF CONSERVATION PLANS AND 
              CONSERVATION SYSTEMS.

    ``(a) Technical Requirements.--In connection with the standards and 
guidelines contained in Natural Resources Conservation Service field 
office technical guides applicable to the development and use of 
conservation measures and management practices as part of a 
conservation system, the Secretary shall ensure that the standards and 
guidelines permit a person to use a conservation system that--
        ``(1) is technically and economically feasible;
        ``(2) is based on local resource conditions and available 
    conservation technology;
        ``(3) is cost-effective; and
        ``(4) does not cause undue economic hardship on the person 
    applying the conservation system under the person's conservation 
    plan.
    ``(b) Measurement of Erosion Reduction.--For the purpose of 
determining whether there is a substantial reduction in soil erosion on 
a field containing highly erodible cropland, the measurement of erosion 
reduction achieved by the application of a conservation system under a 
person's conservation plan shall be based on the estimated annual level 
of erosion at the time of the measurement compared to the estimated 
annual level of erosion that existed before the implementation of the 
conservation measures and management practices provided for in the 
conservation system.
    ``(c) Residue Measurement.--
        ``(1) Responsibilities of the secretary.--For the purpose of 
    measuring the level of residue on a field, the Secretary shall--
            ``(A) take into account any residue incorporated into the 
        top 2 inches of soil, as well as the growing crop, in the 
        measurement;
            ``(B) provide technical guidelines for acceptable residue 
        measurement methods;
            ``(C) provide a certification system for third parties to 
        perform residue measurements; and
            ``(D) provide for the acceptance and use of information and 
        data voluntarily provided by the producer regarding the field.
        ``(2) Acceptance of producer measurements.--Annual residue 
    measurements supplied by a producer (including measurements 
    performed by a certified third party) shall be used by the 
    Secretary if the Secretary determines that the measurements 
    indicate that the residue level for the field meets the level 
    required under the conservation plan.
    ``(d) Certification of Compliance.--
        ``(1) In general.--For the purpose of determining the 
    eligibility of a person for program benefits specified in section 
    1211 at the time application is made for the benefits, the 
    Secretary shall permit the person to certify that the person is 
    complying with the person's conservation plan.
        ``(2) Status reviews.--If a person makes a certification under 
    paragraph (1), the Secretary shall not be required to carry out a 
    review of the status of compliance of the person with the 
    conservation plan under which the conservation system is being 
    applied.
        ``(3) Revisions and modifications.--The Secretary shall permit 
    a person who makes a certification under paragraph (1) with respect 
    to a conservation plan to revise the conservation plan in any 
    manner, if the same level of conservation treatment provided for by 
    the conservation system under the person's conservation plan is 
    maintained. The Secretary may not revise the person's conservation 
    plan without the concurrence of the person.
    ``(e) Technical Assistance.--The Secretary shall, using available 
resources and consistent with the Secretary's other conservation 
responsibilities and objectives, provide technical assistance to a 
person throughout the development, revision, and application of the 
conservation plan and any conservation system of the person. At the 
request of the person, the Secretary may provide technical assistance 
regarding conservation measures and management practices for other 
lands of the person that do not contain highly erodible cropland.
    ``(f) Encouragement of On-Farm Research.--To encourage on-farm 
conservation research, the Secretary may allow a person to include in 
the person's conservation plan or a conservation system under the plan, 
on a field trial basis, practices that are not currently approved but 
that the Secretary considers have a reasonable likelihood of 
success.''.
    (b) Treatment of Technical Determinations.--Section 226(d)(2) of 
the Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 
6932(d)(2)) is amended--
        (1) by striking ``determination.--With'' and inserting 
    ``determination.--
            ``(A) In general.--With''; and
        (2) by adding at the end the following:
            ``(B) Economic hardship.--After a technical determination 
        has been made, on a producer's request, if a county or area 
        committee determines that the application of the producer's 
        conservation system would impose an undue economic hardship on 
        the producer, the committee shall provide the producer with 
        relief to avoid the hardship.''.

SEC. 316. INVESTIGATION OF POSSIBLE COMPLIANCE DEFICIENCIES.

    Subtitle B of title XII of the Food Security Act of 1985 (as 
amended by section 315(a)(1)) is amended by adding at the end the 
following:

``SEC. 1215. NOTICE AND INVESTIGATION OF POSSIBLE COMPLIANCE 
              DEFICIENCIES.

    ``(a) In General.--An employee of the Department of Agriculture who 
observes a possible compliance deficiency or other potential violation 
of a conservation plan or this subtitle while providing on-site 
technical assistance shall provide to the responsible persons, not 
later than 45 days after observing the possible violation, information 
regarding actions needed to comply with the plan and this subtitle. The 
employee shall provide the information in lieu of reporting the 
observation as a compliance violation.
    ``(b) Corrective Action.--The responsible persons shall attempt to 
correct the deficiencies as soon as practicable after receiving the 
information.
    ``(c) Review.--If the corrective action is not fully implemented 
not later than 1 year after the responsible persons receive the 
information, the Secretary may conduct a review of the status of 
compliance of the persons with the conservation plan and this 
subtitle.''.

SEC. 317. WIND EROSION ESTIMATION PILOT PROJECT.

    (a) In General.--The Secretary of Agriculture shall conduct a pilot 
project to review, and modify as appropriate, the use of wind erosion 
factors under the highly erodible conservation requirements of subtitle 
B of title XII of the Food Security Act of 1985 (16 U.S.C. 3811 et 
seq.).
    (b) Selection of Counties and Producers.--The pilot project shall 
be conducted for producers in those counties that--
        (1) have approximately 100 percent of their cropland determined 
    to be highly erodible under title XII of the Act;
        (2) have a reasonable likelihood that the use of wind erosion 
    factors under title XII of the Act have resulted in an inequitable 
    application of the highly erodible land requirements of title XII 
    of the Act; and
        (3) if the use of the land classification system under section 
    1201(a)(9)(A) of the Act (as redesignated by section 301(a)(1)) may 
    result in a more accurate delineation of the cropland.
    (c) Errors in Delineation.--If the Secretary determines that a 
significant error has occurred in delineating cropland under the pilot 
project, the Secretary shall, at the request of the owners or operators 
of the cropland, conduct a new delineation of the cropland using the 
most accurate available delineation process, as determined by the 
Secretary.

                    Subtitle C--Wetland Conservation

SEC. 321. PROGRAM INELIGIBILITY.

    (a) Program Ineligibility.--Section 1221 of the Food Security Act 
of 1985 (16 U.S.C. 3821) is amended--
        (1) by redesignating subsection (b) as subsection (c); and
        (2) by striking the section heading and all that follows 
    through the end of subsection (a) and inserting the following:

``SEC. 1221. PROGRAM INELIGIBILITY.

    ``(a) Production on Converted Wetland.--Except as provided in this 
subtitle and notwithstanding any other provision of law, any person who 
in any crop year produces an agricultural commodity on converted 
wetland, as determined by the Secretary, shall be--
        ``(1) in violation of this section; and
        ``(2) ineligible for loans or payments in an amount determined 
    by the Secretary to be proportionate to the severity of the 
    violation.
    ``(b) Ineligibility for Certain Loans and Payments.--If a person is 
determined to have committed a violation under subsection (a) during a 
crop year, the Secretary shall determine which of, and the amount of, 
the following loans and payments for which the person shall be 
ineligible:
        ``(1) Contract payments under a production flexibility 
    contract, marketing assistance loans, and any type of price support 
    or payment made available under the Agricultural Market Transition 
    Act, the Commodity Credit Corporation Charter Act (15 U.S.C. 714 et 
    seq.), or any other Act.
        ``(2) A loan made or guaranteed under the Consolidated Farm and 
    Rural Development Act (7 U.S.C. 1921 et seq.) or any other 
    provision of law administered by the Consolidated Farm Service 
    Agency, if the Secretary determines that the proceeds of the loan 
    will be used for a purpose that will contribute to conversion of a 
    wetland (other than as provided in this subtitle) to produce an 
    agricultural commodity.
        ``(3) During the crop year:
            ``(A) A payment made pursuant to a contract entered into 
        under the environmental quality incentives program under 
        chapter 4 of subtitle D.
            ``(B) A payment under any other provision of subtitle D.
            ``(C) A payment under section 401 or 402 of the 
        Agricultural Credit Act of 1978 (16 U.S.C. 2201 and 2202).
            ``(D) A payment, loan, or other assistance under section 3 
        or 8 of the Watershed Protection and Flood Prevention Act (16 
        U.S.C. 1003 and 1006a).''.
    (b) Conforming Amendments.--
        (1) Section 1221(c) of the Food Security Act of 1985 (as 
    redesignated by subsection (a)(1)) is amended--
            (A) by striking ``Except'' and inserting ``Wetland 
        Conversion.--Except'';
            (B) by striking ``subsequent to the date of enactment of 
        the Food, Agriculture, Conservation, and Trade Act of 1990'' 
        and inserting ``beginning after November 28, 1990,''; and
            (C) by striking ``subsections (a) (1) through (3)'' and 
        inserting ``subsection (b)''.
        (2) Section 1221 of the Food Security Act of 1985 (as amended 
    by subsection (a)) is amended by adding at the end the following:
    ``(d) Prior Loans.--This section shall not apply to a loan 
described in subsection (b) made before December 23, 1985.''.

SEC. 322. DELINEATION OF WETLANDS; EXEMPTIONS TO PROGRAM INELIGIBILITY.

    (a) Delineation of Wetlands.--Section 1222 of the Food Security Act 
of 1985 (16 U.S.C. 3822) is amended by striking subsection (a) and 
inserting the following:
    ``(a) Delineation by the Secretary.--
        ``(1) In general.--Subject to subsection (b) and paragraph (6), 
    the Secretary shall delineate, determine, and certify all wetlands 
    located on subject land on a farm.
        ``(2) Wetland delineation maps.--The Secretary shall delineate 
    wetlands on wetland delineation maps. On the request of a person, 
    the Secretary shall make a reasonable effort to make an on-site 
    wetland determination prior to delineation.
        ``(3) Certification.--On providing notice to affected persons, 
    the Secretary shall--
            ``(A) certify whether a map is sufficient for the purpose 
        of making a determination of ineligibility for program benefits 
        under section 1221; and
            ``(B) provide an opportunity to appeal the certification 
        prior to the certification becoming final.
        ``(4) Duration of certification.--A final certification made 
    under paragraph (3) shall remain valid and in effect as long as the 
    area is devoted to an agricultural use or until such time as the 
    person affected by the certification requests review of the 
    certification by the Secretary.
        ``(5) Review of mapping on appeal.--In the case of an appeal of 
    the Secretary's certification, the Secretary shall review and 
    certify the accuracy of the mapping of all land subject to the 
    appeal to ensure that the subject land has been accurately 
    delineated. Prior to rendering a decision on the appeal, the 
    Secretary shall conduct an on-site inspection of the subject land 
    on a farm.
        ``(6) Reliance on prior certified delineation.--No person shall 
    be adversely affected because of having taken an action based on a 
    previous certified wetland delineation by the Secretary. The 
    delineation shall not be subject to a subsequent wetland 
    certification or delineation by the Secretary, unless requested by 
    the person under paragraph (4).''.
    (b) Exemptions.--Section 1222 of the Food Security Act of 1985 (16 
U.S.C. 3822) is amended by striking subsection (b) and inserting the 
following:
    ``(b) Exemptions.--No person shall become ineligible under section 
1221 for program loans or payments under the following circumstances:
        ``(1) As the result of the production of an agricultural 
    commodity on the following lands:
            ``(A) A converted wetland if the conversion of the wetland 
        was commenced before December 23, 1985.
            ``(B) Land that is a nontidal drainage or irrigation ditch 
        excavated in upland.
            ``(C) A wet area created by a water delivery system, 
        irrigation, irrigation system, or application of water for 
        irrigation.
            ``(D) A wetland on which the owner or operator of a farm or 
        ranch uses normal cropping or ranching practices to produce an 
        agricultural commodity in a manner that is consistent for the 
        area where the production is possible as a result of a natural 
        condition, such as drought, and is without action by the 
        producer that destroys a natural wetland characteristic.
            ``(E) Land that is an artificial lake or pond created by 
        excavating or diking land (that is not a wetland) to collect 
        and retain water and that is used primarily for livestock 
        watering, fish production, irrigation, wildlife, fire control, 
        flood control, cranberry growing, or rice production, or as a 
        settling pond.
            ``(F) A wetland that is temporarily or incidentally created 
        as a result of adjacent development activity.
            ``(G) A converted wetland if the original conversion of the 
        wetland was commenced before December 23, 1985, and the 
        Secretary determines the wetland characteristics returned after 
        that date as a result of--
                ``(i) the lack of maintenance of drainage, dikes, 
            levees, or similar structures;
                ``(ii) a lack of management of the lands containing the 
            wetland; or
                ``(iii) circumstances beyond the control of the person.
            ``(H) A converted wetland, if--
                ``(i) the converted wetland was determined by the 
            Natural Resources Conservation Service to have been 
            manipulated for the production of an agricultural commodity 
            or forage prior to December 23, 1985, and was returned to 
            wetland conditions through a voluntary restoration, 
            enhancement, or creation action subsequent to that 
            determination;
                ``(ii) technical determinations regarding the prior 
            site conditions and the restoration, enhancement, or 
            creation action have been adequately documented by the 
            Natural Resources Conservation Service;
                ``(iii) the proposed conversion action is approved by 
            the Natural Resources Conservation Service prior to 
            implementation; and
                ``(iv) the extent of the proposed conversion is limited 
            so that the conditions will be at least equivalent to the 
            wetland functions and values that existed prior to 
            implementation of the voluntary wetland restoration, 
            enhancement, or creation action.
        ``(2) For the conversion of the following:
            ``(A) An artificial lake or pond created by excavating or 
        diking land that is not a wetland to collect and retain water 
        and that is used primarily for livestock watering, fish 
        production, irrigation, wildlife, fire control, flood control, 
        cranberry growing, rice production, or as a settling pond.
            ``(B) A wetland that is temporarily or incidentally created 
        as a result of adjacent development activity.
            ``(C) A wetland on which the owner or operator of a farm or 
        ranch uses normal cropping or ranching practices to produce an 
        agricultural commodity in a manner that is consistent for the 
        area where the production is possible as a result of a natural 
        condition, such as drought, and is without action by the 
        producer that destroys a natural wetland characteristic.
            ``(D) A wetland previously identified as a converted 
        wetland (if the original conversion of the wetland was 
        commenced before December 23, 1985), but that the Secretary 
        determines returned to wetland status after that date as a 
        result of--
                ``(i) the lack of maintenance of drainage, dikes, 
            levees, or similar structures;
                ``(ii) a lack of management of the lands containing the 
            wetland; or
                ``(iii) circumstances beyond the control of the person.
            ``(E) A wetland, if--
                ``(i) the wetland was determined by the Natural 
            Resources Conservation Service to have been manipulated for 
            the production of an agricultural commodity or forage prior 
            to December 23, 1985, and was returned to wetland 
            conditions through a voluntary restoration, enhancement, or 
            creation action subsequent to that determination;
                ``(ii) technical determinations regarding the prior 
            site conditions and the restoration, enhancement, or 
            creation action have been adequately documented by the 
            Natural Resources Conservation Service;
                ``(iii) the proposed conversion action is approved by 
            the Natural Resources Conservation Service prior to 
            implementation; and
                ``(iv) the extent of the proposed conversion is limited 
            so that the conditions will be at least equivalent to the 
            wetland functions and values that existed prior to 
            implementation of the voluntary wetland restoration, 
            enhancement, or creation action.''.
    (c) Identification of Minimal Effect Exemptions.--Section 1222 of 
the Food Security Act of 1985 (16 U.S.C. 3822) is amended by striking 
subsection (d) and inserting the following:
    ``(d) Identification of Minimal Effect Exemptions.--For purposes of 
applying the minimal effect exemption under subsection (f)(1), the 
Secretary shall identify by regulation categorical minimal effect 
exemptions on a regional basis to assist persons in avoiding a 
violation of the ineligibility provisions of section 1221. The 
Secretary shall ensure that employees of the Department of Agriculture 
who administer this subtitle receive appropriate training to properly 
apply the minimal effect exemptions determined by the Secretary.''.
    (d) Minimal Effect and Mitigation Exemptions.--Section 1222 of the 
Food Security Act of 1985 (16 U.S.C. 3822) is amended by striking 
subsection (f) and inserting the following:
    ``(f) Minimal Effect; Mitigation.--The Secretary shall exempt a 
person from the ineligibility provisions of section 1221 for any action 
associated with the production of an agricultural commodity on a 
converted wetland, or the conversion of a wetland, if 1 or more of the 
following conditions apply, as determined by the Secretary:
        ``(1) The action, individually and in connection with all other 
    similar actions authorized by the Secretary in the area, will have 
    a minimal effect on the functional hydrological and biological 
    value of the wetlands in the area, including the value to waterfowl 
    and wildlife.
        ``(2) The wetland and the wetland values, acreage, and 
    functions are mitigated by the person through the restoration of a 
    converted wetland, the enhancement of an existing wetland, or the 
    creation of a new wetland, and the restoration, enhancement, or 
    creation is--
            ``(A) in accordance with a wetland conservation plan;
            ``(B) in advance of, or concurrent with, the action;
            ``(C) not at the expense of the Federal Government;
            ``(D) in the case of enhancement or restoration of 
        wetlands, on not greater than a 1-for-1 acreage basis unless 
        more acreage is needed to provide equivalent functions and 
        values that will be lost as a result of the wetland conversion 
        to be mitigated;
            ``(E) in the case of creation of wetlands, on greater than 
        a 1-for-1 acreage basis if more acreage is needed to provide 
        equivalent functions and values that will be lost as a result 
        of the wetland conversion that is mitigated;
            ``(F) on lands in the same general area of the local 
        watershed as the converted wetland; and
            ``(G) with respect to the restored, enhanced, or created 
        wetland, made subject to an easement that--
                ``(i) is recorded on public land records;
                ``(ii) remains in force for as long as the converted 
            wetland for which the restoration, enhancement, or creation 
            to be mitigated remains in agricultural use or is not 
            returned to its original wetland classification with 
            equivalent functions and values; and
                ``(iii) prohibits making alterations to the restored, 
            enhanced, or created wetland that lower the wetland's 
            functions and values.
        ``(3) The wetland was converted after December 23, 1985, but 
    before November 28, 1990, and the wetland values, acreage, and 
    functions are mitigated by the producer through the requirements of 
    subparagraphs (A), (B), (C), (D), (F), and (G) of paragraph (2).
        ``(4) The action was authorized by a permit issued under 
    section 404 of the Federal Water Pollution Control Act (33 U.S.C. 
    1344) and the wetland values, acreage, and functions of the 
    converted wetland were adequately mitigated for the purposes of 
    this subtitle.''.
    (e) References to Producer.--Section 1222(g) of the Food Security 
Act of 1985 (16 U.S.C. 3822(g)) is amended by striking ``producer'' and 
inserting ``person''.
    (f) Good Faith Exemption.--Section 1222 of the Food Security Act of 
1985 (16 U.S.C. 3822) is amended by striking subsection (h) and 
inserting the following:
    ``(h) Good Faith Exemption.--
        ``(1) Exemption described.--The Secretary may waive a person's 
    ineligibility under section 1221 for program loans, payments, and 
    benefits as the result of the conversion of a wetland subsequent to 
    November 28, 1990, or the production of an agricultural commodity 
    on a converted wetland, if the Secretary determines that the person 
    has acted in good faith and without intent to violate this 
    subtitle.
        ``(2) Period for compliance.--The Secretary shall provide a 
    person who the Secretary determines has acted in good faith and 
    without intent to violate this subtitle with a reasonable period, 
    but not to exceed 1 year, during which to implement the measures 
    and practices necessary to be considered to actively restoring the 
    subject wetland.''.
    (g) Restoration.--Section 1222(i) of the Food Security Act of 1985 
(16 U.S.C. 3822(i)) is amended by inserting before the period at the 
end the following: ``or has otherwise mitigated for the loss of wetland 
values, as determined by the Secretary, through the restoration, 
enhancement, or creation of wetland values in the same general area of 
the local watershed as the converted wetland''.
    (h) Determinations.--Section 1222 of the Food Security Act of 1985 
(16 U.S.C. 3822) is amended by striking subsection (j) and inserting 
the following:
    ``(j) Determinations; Restoration and Mitigation Plans; Monitoring 
Activities.--Technical determinations, the development of restoration 
and mitigation plans, and monitoring activities under this section 
shall be made by the National Resources Conservation Service.''.
    (i) Mitigation Banking.--Section 1222 of the Food Security Act of 
1985 (16 U.S.C. 3822) is amended by adding at the end the following:
    ``(k) Mitigation Banking Program.--Using authorities available to 
the Secretary, the Secretary may operate a pilot program for mitigation 
banking of wetlands to assist persons to increase the efficiency of 
agricultural operations while protecting wetland functions and values. 
Subsection (f)(2)(C) shall not apply to this subsection.''.

SEC. 323. CONSULTATION AND COOPERATION REQUIREMENTS.

    Section 1223 of the Food Security Act of 1985 (16 U.S.C. 3823) is 
repealed.

SEC. 324. APPLICATION OF PROGRAM INELIGIBILITY TO AFFILIATED PERSONS.

    The Food Security Act of 1985 (as amended by section 323) is 
amended by inserting after section 1222 (16 U.S.C. 3822) the following:

``SEC. 1223. AFFILIATED PERSONS.

    ``If a person is affected by a reduction in benefits under section 
1221 and the affected person is affiliated with other persons for the 
purpose of receiving the benefits, the benefits of each affiliated 
person shall be reduced under section 1221 in proportion to the 
interest held by the affiliated person.''.

SEC. 325. CLARIFICATION OF DEFINITION OF AGRICULTURAL LANDS IN 
              MEMORANDUM OF AGREEMENT.

    (a) Agricultural Lands.--For purposes of implementing the 
memorandum of agreement entered into between the Department of 
Agriculture, the Environmental Protection Agency, the Department of the 
Interior, and the Department of the Army on January 6, 1994, relating 
to the delineation of wetlands, the term ``agricultural lands'' shall 
include--
        (1) native pasture, rangelands, and other lands used to produce 
    or support the production of livestock; and
        (2) tree farms.
    (b) Wetland Conservation.--Subsection (a) shall not apply with 
respect to the delineation of wetlands under subtitle C of title XII of 
the Food Security Act of 1985 (16 U.S.C. 3821 et seq.) or to the 
enforcement of the subtitle.
    (c) Successor Memorandum.--Subsection (a) shall apply to any 
amendment to or successor of the memorandum of agreement described in 
subsection (a).

SEC. 326. EFFECTIVE DATE.

    This subtitle and the amendments made by this subtitle shall become 
effective 90 days after the date of enactment of this Act.

     Subtitle D--Environmental Conservation Acreage Reserve Program

SEC. 331. 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; and
            ``(C) the environmental quality incentives program 
        established under chapter 4.
    ``(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 date of enactment 
    of this paragraph shall be considered to be placed into the ECARP.
    ``(c) Conservation Priority Areas.--
        ``(1) Designation.--The Secretary may designate watersheds, 
    multistate areas, or regions of special environmental sensitivity 
    as conservation priority areas that are eligible for enhanced 
    assistance under this chapter and chapter 4.
        ``(2) Assistance.--The Secretary may designate areas as 
    conservation priority areas to assist, to the maximum extent 
    practicable, agricultural producers within the conservation 
    priority areas 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 
    and to meet other conservation needs.
        ``(3) Producers.--The Secretary may provide technical 
    assistance, cost-share payments, and incentive payments to 
    producers in a conservation priority area under this chapter and 
    chapter 4 based on--
            ``(A) the significance of the soil, water, wildlife 
        habitat, and related natural resource problems in a watershed, 
        multistate area, or region; and
            ``(B) the structural practices or land management practices 
        that best address the problems, and that maximize environmental 
        benefits for each dollar expended, as determined by the 
        Secretary.''.

SEC. 332. CONSERVATION RESERVE PROGRAM.

    (a) Program Extensions.--
        (1) Conservation reserve program.--Section 1231 of the Food 
    Security Act of 1985 (16 U.S.C. 3831) is amended by striking 
    ``1995'' each place it appears and inserting ``2002''.
        (2) 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''.
    (b) Maximum Enrollment.--Section 1231 of the Food Security Act of 
1985 (16 U.S.C. 3831) is amended by striking subsection (d) and 
inserting the following:
    ``(d) Maximum Enrollment.--The Secretary may maintain up to 
36,400,000 acres in the conservation reserve at any one time during the 
1986 through 2002 calendar years (including contracts extended by the 
Secretary pursuant to section 1437(c) of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (Public Law 101-624; 16 U.S.C. 3831 
note)).''.
    (c) Optional Contract Termination by Producers.--Section 1235 of 
the Food Security Act of 1985 (16 U.S.C. 3835) is amended--
        (1) in subsection (a)--
            (A) in paragraph (1), by striking ``3-year'' and inserting 
        ``1-year''; and
            (B) in paragraph (2)(B)(i), by striking ``3 years'' and 
        inserting ``1 year''; and
        (2) by adding at the end the following:
    ``(e) Termination by Owner or Operator.--
        ``(1) Early termination authorized.--Subject to the other 
    provisions of this subsection, the Secretary shall allow a 
    participant who entered into a contract before January 1, 1995, to 
    terminate the contract at any time if the contract has been in 
    effect for at least 5 years. The termination shall not relieve the 
    participant of liability for a contract violation occurring before 
    the date of the termination. The participant shall provide the 
    Secretary with reasonable notice of the participant's desire to 
    terminate the contract.
        ``(2) Certain lands excepted.--The following lands shall not be 
    subject to an early termination of contract under this subsection:
            ``(A) Filterstrips, waterways, strips adjacent to riparian 
        areas, windbreaks, and shelterbelts.
            ``(B) Land with an erodibility index of more than 15.
            ``(C) Other lands of high environmental value (including 
        wetlands), as determined by the Secretary.
        ``(3) Effective date.--The contract termination shall become 
    effective 60 days after the date on which the owner or operator 
    submits the notice required under paragraph (1).
        ``(4) Prorated rental payment.--If a contract entered into 
    under this subchapter is terminated under this subsection before 
    the end of the fiscal year for which a rental payment is due, the 
    Secretary shall provide a prorated rental payment covering the 
    portion of the fiscal year during which the contract was in effect.
        ``(5) Renewed enrollment.--The termination of a contract 
    entered into under this subchapter shall not affect the ability of 
    the owner or operator who requested the termination to submit a 
    subsequent bid to enroll the land that was subject to the contract 
    into the conservation reserve.
        ``(6) Conservation requirements.--If land that was subject to a 
    contract is returned to production of an agricultural commodity, 
    the conservation requirements under subtitles B and C shall apply 
    to the use of the land to the extent that the requirements are 
    similar to those requirements imposed on other similar lands in the 
    area, except that the requirements may not be more onerous than the 
    requirements imposed on other lands.''.
    (d) Enrollments in 1997.--Section 725 of the Agriculture, Rural 
Development, Food and Drug Administration, and Related Agencies 
Appropriations Act, 1996 (Public Law 104-37; 109 Stat. 332), is amended 
by striking ``: Provided,'' and all that follows through ``1997''.

SEC. 333. WETLANDS RESERVE PROGRAM.

    (a) 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) Enrollment Conditions.--
        ``(1) Maximum enrollment.--The total number of acres enrolled 
    in the wetlands reserve program shall not exceed 975,000 acres.
        ``(2) Methods of enrollment.--
            ``(A) In general.--Subject to subparagraph (B), effective 
        beginning October 1, 1996, to the maximum extent practicable, 
        the Secretary shall enroll into the wetlands reserve program--
                ``(i) \1/3\ of the acres through the use of permanent 
            easements;
                ``(ii) \1/3\ of the acres through the use of 30-year 
            easements; and
                ``(iii) \1/3\ of the acres through the use of 
            restoration cost-share agreements.
            ``(B) Temporary easements.--Effective beginning October 1, 
        1996, the Secretary shall not enroll acres in the wetlands 
        reserve program through the use of new permanent easements 
        until the Secretary has enrolled at least 75,000 acres in the 
        program through the use of temporary easements.''.
    (b) 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'';
        (2) by redesignating paragraphs (1) and (2) as paragraphs (2) 
    and (3), respectively; and
        (3) by inserting after ``determines that--'' the following:
        ``(1) such land maximizes wildlife benefits and wetland values 
    and functions;''.
    (c) Other Eligible Lands.--Section 1237(d) of the Food Security Act 
of 1985 (16 U.S.C. 3837(d)) is amended--
        (1) by inserting after ``subsection (c)'' the following ``, 
    land that maximizes wildlife benefits and that is''; and
        (2) in paragraph (2), by striking ``and'' at the end and 
    inserting ``or''.
    (d) 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) Restoration Cost-Share Agreements.--The Secretary may enroll 
land into the wetlands reserve program through an agreement that 
requires the landowner to restore wetlands on the land, if the 
agreement does not provide the Secretary with an easement.''.
    (e) 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.--
        ``(1) Easements.--Effective beginning October 1, 1996, in 
    making cost-share payments under subsection (a)(1), the Secretary 
    shall--
            ``(A) 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; and
            ``(B) in the case of a 30-year easement, pay the owner an 
        amount that is not less than 50 percent, but not more than 75 
        percent, of the eligible costs.
        ``(2) Restoration cost-share agreements.--In making cost-share 
    payments in connection with a restoration cost-share agreement 
    entered into under section 1237A(h), the Secretary shall pay the 
    owner an amount that is not less than 50 percent, but not more than 
    75 percent, of the eligible costs.
        ``(3) Technical assistance.--The Secretary shall provide owners 
    with technical assistance to assist owners in complying with the 
    terms of easements and restoration cost-share agreements.''.
    (f) Effect on Existing Agreements.--The amendments made by this 
section shall not affect the validity or terms of any agreements 
entered into by the Secretary of Agriculture under subchapter C of 
chapter 1 of subtitle D of title XII of the Food Security Act of 1985 
(16 U.S.C. 3837 et seq.) before the date of enactment of this Act or 
any payments required to be made in connection with the agreements.

SEC. 334. 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. 1240. 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 336(a)(1) of the Federal 
        Agriculture Improvement and Reform 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 336(b)(1) of the Federal Agriculture 
        Improvement and Reform Act of 1996);
            ``(C) the water quality incentives program established 
        under chapter 2 (as in effect before the amendment made by 
        section 336(h) of the Federal Agriculture Improvement and 
        Reform Act of 1996); and
            ``(D) 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 336(c)(1) of the Federal 
        Agriculture Improvement and Reform 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 
        encourages 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 producers.

``SEC. 1240A. DEFINITIONS.

    ``In this chapter:
        ``(1) Eligible land.--The term `eligible land' means 
    agricultural land (including cropland, rangeland, pasture, and 
    other land on which crops or livestock are produced), including 
    agricultural land 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) Land management practice.--The term `land management 
    practice' means a site-specific nutrient or manure management, 
    integrated pest management, irrigation management, tillage or 
    residue management, grazing management, or other land management 
    practice carried out on eligible land that the Secretary determines 
    is needed to protect, in the most cost-effective manner, water, 
    soil, or related resources from degradation.
        ``(3) Livestock.--The term `livestock' means dairy cattle, beef 
    cattle, laying hens, broilers, turkeys, swine, sheep, and such 
    other animals as determined by the Secretary.
        ``(4) Producer.--The term `producer' means a person who is 
    engaged in livestock or agricultural production (as defined by the 
    Secretary).
        ``(5) Structural practice.--The term `structural practice' 
    means--
            ``(A) the establishment on eligible land of a site-specific 
        animal waste management facility, terrace, grassed waterway, 
        contour grass strip, filterstrip, tailwater pit, permanent 
        wildlife habitat, or other structural practice that the 
        Secretary determines is needed to protect, in the most cost-
        effective manner, water, soil, or related resources from 
        degradation; and
            ``(B) the capping of abandoned wells on eligible land.

``SEC. 1240B. 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-share 
    payments, incentive payments, and education to producers, who enter 
    into contracts with the Secretary, through an environmental quality 
    incentives program in accordance with this chapter.
        ``(2) Eligible practices.--
            ``(A) Structural practices.--A producer who implements a 
        structural practice shall be eligible for any combination of 
        technical assistance, cost-share payments, and education.
            ``(B) Land management practices.--A producer who performs a 
        land management practice shall be eligible for any combination 
        of technical assistance, incentive payments, and education.
    ``(b) Application and Term.--A contract between a producer 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) Offer selection process.--The Secretary shall, to the 
    maximum extent practicable, establish a process for selecting 
    applications for financial assistance if there are numerous 
    applications for assistance for structural practices that would 
    provide substantially the same level of environmental benefits. The 
    process shall be based on--
            ``(A) a reasonable estimate of the projected cost of the 
        proposals and other factors identified by the Secretary for 
        determining which applications will result in the least cost to 
        the program authorized by this chapter; and
            ``(B) the priorities established under this subtitle and 
        such other factors determined by the Secretary that maximize 
        environmental benefits per dollar expended.
        ``(2) Concurrence of owner.--If the producer 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 
    producer 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 a producer in exchange for the 
performance of 1 or more land management practices by the producer.
    ``(e) Cost-Share Payments, Incentive Payments, and Technical 
Assistance.--
        ``(1) Cost-share payments.--
            ``(A) In general.--The Federal share of cost-share payments 
        to a producer proposing to implement 1 or more structural 
        practices shall be not more than 75 percent of the projected 
        cost of the practice, as determined by the Secretary, taking 
        into consideration any payment received by the producer from a 
        State or local government.
            ``(B) Limitation.--A producer who owns or operates a large 
        confined livestock operation (as defined by the Secretary) 
        shall not be eligible for cost-share payments to construct an 
        animal waste management facility.
            ``(C) Other payments.--A producer shall not be eligible for 
        cost-share payments for structural practices on eligible land 
        under this chapter if the producer receives cost-share 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 a producer to perform 1 or more land 
    management practices.
        ``(3) Technical assistance.--
            ``(A) 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 for 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 for a fiscal year.
            ``(B) Other authorities.--The receipt of technical 
        assistance under this chapter shall not affect the eligibility 
        of the producer to receive technical assistance under other 
        authorities of law available to the Secretary.
            ``(C) Private sources.--The Secretary shall ensure that the 
        processes of writing and developing proposals and plans for 
        contracts under this chapter, and of assisting in the 
        implementation of structural practices and land management 
        practices covered by the contracts, are open to individuals in 
        agribusiness, including agricultural producers, representatives 
        from agricultural cooperatives, agricultural input retail 
        dealers, and certified crop advisers. The requirements of this 
        subparagraph shall also apply to any other conservation program 
        of the Department of Agriculture that provides incentive 
        payments, technical assistance, or cost-share payments.
    ``(f) Modification or Termination of Contracts.--
        ``(1) Voluntary modification or termination.--The Secretary may 
    modify or terminate a contract entered into with a producer under 
    this chapter if--
            ``(A) the producer 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 
    producer violated the contract.
    ``(g) Non-Federal Assistance.--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.

``SEC. 1240C. EVALUATION OF OFFERS AND PAYMENTS.

    ``In providing technical assistance, cost-share payments, and 
incentive payments to producers, the Secretary shall accord a higher 
priority to assistance and payments that--
        ``(1) are provided in conservation priority areas established 
    under section 1230(c);
        ``(2) maximize environmental benefits per dollar expended; or
        ``(3) are provided in watersheds, regions, or conservation 
    priority areas in which State or local governments have provided, 
    or will provide, financial or technical assistance to producers for 
    the same conservation or environmental purposes.

``SEC. 1240D. DUTIES OF PRODUCERS.

    ``To receive technical assistance, cost-share payments, or 
incentive payments under this chapter, a producer 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 producer has control of the land, to refund any 
    cost-share 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 producer 
    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-share 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. 1240E. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM PLAN.

    ``(a) In General.--To be eligible to enter into a contract under 
the environmental quality incentives program, an owner or producer of a 
livestock or agricultural operation must submit to the Secretary for 
approval a plan of operations that incorporates such conservation 
practices, and is based on such principles, as the Secretary considers 
necessary to carry out the program, including a description of 
structural practices and land management practices to be implemented 
and the objectives to be met by the plan's implementation.
    ``(b) Avoidance of Duplication.--The Secretary shall, to the 
maximum extent practicable, eliminate duplication of planning 
activities under the environmental quality incentives program and 
comparable conservation programs.

``SEC. 1240F. DUTIES OF THE SECRETARY.

    ``To the extent appropriate, the Secretary shall assist a producer 
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 producer as a basis for developing the 
    plan;
        ``(2) providing technical assistance in developing and 
    implementing the plan;
        ``(3) providing technical assistance, cost-share 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 producer with information, education, and 
    training to aid in implementation of the plan; and
        ``(5) encouraging the producer to obtain technical assistance, 
    cost-share payments, or grants from other Federal, State, local, or 
    private sources.

``SEC. 1240G. LIMITATION ON PAYMENTS.

    ``(a) In General.--The total amount of cost-share and incentive 
payments paid to a producer under this chapter may not exceed--
        ``(1) $10,000 for any fiscal year; or
        ``(2) $50,000 for any multiyear contract.
    ``(b) Exception to Annual Limit.--The Secretary may exceed the 
limitation on the annual amount of a payment under subsection (a)(1) on 
a case-by-case basis if the Secretary determines that a larger payment 
is--
        ``(1) essential to accomplish the land management practice or 
    structural practice for which the payment is made; and
        ``(2) consistent with the maximization of environmental 
    benefits per dollar expended and the purposes of this chapter 
    specified in section 1240.
    ``(c) Timing of Expenditures.--Expenditures under a contract 
entered into under this chapter during a fiscal year may not be made by 
the Secretary until the subsequent fiscal year.

``SEC. 1240H. TEMPORARY ADMINISTRATION OF ENVIRONMENTAL QUALITY 
              INCENTIVES PROGRAM.

    ``(a) Interim Administration.--
        ``(1) In general.--During the period beginning on the date of 
    enactment of this section and ending on the termination date 
    provided under paragraph (2), to ensure that technical assistance, 
    cost-share payments, and incentive payments continue to be 
    administered in an orderly manner until such time as assistance can 
    be provided through final regulations issued to implement the 
    environmental quality incentives program established under this 
    chapter, the Secretary shall continue to--
            ``(A) provide technical assistance, cost-share payments, 
        and incentive payments under the terms and conditions of the 
        agricultural conservation program, the Great Plains 
        conservation program, the water quality incentives program, and 
        the Colorado River Basin salinity control program, to the 
        extent the terms and conditions of the program are consistent 
        with the environmental quality incentives program; and
            ``(B) use for those purposes--
                ``(i) any funds remaining available for the 
            agricultural conservation program, the Great Plains 
            conservation program, the water quality incentives program, 
            and the Colorado River Basin salinity control program; and
                ``(ii) as the Secretary determines to be necessary, any 
            funds authorized to be used to carry out the environmental 
            quality incentives program.
        ``(2) Termination of authority.--The authority of the Secretary 
    to carry out paragraph (1) shall terminate on the date that is 180 
    days after the date of enactment of this section.
    ``(b) Permanent Administration.--Effective beginning on the 
termination date provided under subsection (a)(2), the Secretary shall 
provide technical assistance, cost-share payments, and incentive 
payments for structural practices and land management practices related 
to crop and livestock production in accordance with final regulations 
issued to carry out the environmental quality incentives program.''.

SEC. 335. CONSERVATION FARM OPTION.

    Subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 
3830 et seq.) (as amended by section 334) is amended by adding at the 
end the following:

                 ``CHAPTER 5--CONSERVATION FARM OPTION

``SEC. 1240M. CONSERVATION FARM OPTION.

    ``(a) In General.--The Secretary shall establish conservation farm 
option pilot programs for producers of wheat, feed grains, cotton, and 
rice.
    ``(b) Eligible Owners and Producers.--An owner or producer with a 
farm that has contract acreage enrolled in the agricultural market 
transition program established under the Agricultural Market Transition 
Act shall be eligible to participate in the conservation farm option 
offered under a pilot program under subsection (a) if the owner or 
producer meets the conditions established under section (e).
    ``(c) Purposes.--The purposes of the conservation farm option pilot 
programs shall include--
        ``(1) conservation of soil, water, and related resources;
        ``(2) water quality protection or improvement;
        ``(3) wetland restoration, protection, and creation;
        ``(4) wildlife habitat development and protection; or
        ``(5) other similar conservation purposes.
    ``(d) Conservation Farm Plan.--
        ``(1) In general.--To be eligible to enter into a conservation 
    farm option contract, an owner or producer must prepare and submit 
    to the Secretary, for approval, a conservation farm plan that shall 
    become a part of the conservation farm option contract.
        ``(2) Requirements.--A conservation farm plan shall--
            ``(A) describe the resource-conserving crop rotations, and 
        all other conservation practices, to be implemented and 
        maintained on the acreage that is subject to contract during 
        the contract period;
            ``(B) contain a schedule for the implementation and 
        maintenance of the practices described in the conservation farm 
        plan;
            ``(C) comply with highly erodible land and wetland 
        conservation requirements of this title; and
            ``(D) contain such other terms as the Secretary may 
        require.
    ``(e) Contracts.--
        ``(1) In general.--On approval of a conservation farm plan, the 
    Secretary may enter into a contract with the owner or producer that 
    specifies the acres being enrolled and the practices being adopted.
        ``(2) Duration of contract.--The contract shall be for a period 
    of 10 years. The contract may be renewed for a period of not to 
    exceed 5 years on mutual agreement of the Secretary and the owner 
    or producer.
        ``(3) Consideration.--In exchange for payments under this 
    subsection, the owner or producer shall not participate in and 
    shall forgo payments under--
            ``(A) the conservation reserve program established under 
        subchapter B of chapter 1;
            ``(B) the wetlands reserve program established under 
        subchapter C of chapter 1; and
            ``(C) the environmental quality incentives program 
        established under chapter 4.
        ``(4) Owner or producer responsibilities under the agreement.--
    Under the terms of the contract entered into under this section, an 
    owner or producer shall agree to--
            ``(A) actively comply with the terms and conditions of the 
        approved conservation farm plan;
            ``(B) keep such records as the Secretary may reasonably 
        require for purposes of evaluation of the implementation of the 
        conservation farm plan; and
            ``(C) not engage in any activity that would defeat the 
        purposes of the conservation farm option pilot program.
        ``(5) Payments.--The Secretary shall offer an owner or producer 
    annual payments under the contract that are equivalent to the 
    payments the owner or producer would have received under the 
    conservation reserve program, the wetlands reserve program, and the 
    environmental quality incentives program.
        ``(6) Balance of benefits.--The Secretary shall not permit an 
    owner or producer to terminate a conservation reserve program 
    contract and enter a conservation farm option contract if the 
    Secretary determines that such action will reduce net environmental 
    benefits.
    ``(f) Secretarial Determinations.--
        ``(1) Acreage estimates.--Prior to each year during which the 
    Secretary intends to offer conservation reserve program contracts, 
    the Secretary shall estimate the number of acres that--
            ``(A) will be retired under the conservation farm option 
        under the terms and conditions the Secretary intends to offer 
        for that program; and
            ``(B) would be retired under the conservation reserve 
        program if the conservation farm option were not available.
        ``(2) Total land retirement.--The Secretary shall announce a 
    number of acres to be enrolled in the conservation reserve program 
    that will result in a total number of acres retired under the 
    conservation reserve program and the conservation farm option that 
    does not exceed the amount estimated under paragraph (1)(B) for the 
    current or future years.
        ``(3) Limitation.--The Secretary shall not enroll additional 
    conservation reserve program contracts to offset the land retired 
    under the conservation farm option.
    ``(g) Commodity Credit Corporation.--The Secretary shall use the 
funds, authorities, and facilities of the Commodity Credit Corporation 
to carry out this subsection.
    ``(h) Funding.--Of the funds of the Commodity Credit Corporation, 
the Corporation shall make available to carry out this section--
        ``(1) $7,500,000 for fiscal year 1997;
        ``(2) $15,000,000 for fiscal year 1998;
        ``(3) $25,000,000 for fiscal year 1999;
        ``(4) $37,500,000 for fiscal year 2000;
        ``(5) $50,000,000 for fiscal year 2001; and
        ``(6) $62,500,000 for fiscal year 2002.''.

SEC. 336. REPEAL OF SUPERSEDED AUTHORITIES.

    (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 4 of subtitle D of 
    title XII of the Food Security Act of 1985.''; 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 Soil Conservation and Domestic 
        Allotment 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 Soil Conservation and Domestic 
        Allotment 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 4 of subtitle D of title XII of the Food Security Act 
        of 1985''.
            (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 336(d)(1) of the Federal 
        Agriculture Improvement and Reform 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 4 of subtitle D of title XII of the 
        Food Security Act of 1985''.
            (F) 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 ``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 4 of subtitle D of title 
            XII of the Food Security Act of 1985''.
            (G) 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 4 of subtitle D of title XII of the 
        Food Security Act of 1985''.
            (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) Colorado River Basin Salinity Control Program.--
        (1) In general.--Section 202 of the Colorado River Basin 
    Salinity Control Act (43 U.S.C. 1592) is amended by striking 
    subsection (c) and inserting the following:
    ``(c) Salinity Control Measures.--The Secretary of Agriculture 
shall carry out salinity control measures (including watershed 
enhancement and cost-share measures with livestock and crop producers) 
in the Colorado River Basin as part of the environmental quality 
incentives program established under chapter 4 of subtitle D of title 
XII of the Food Security Act of 1985.''.
        (2) Funds.--Section 205 of the Colorado River Basin Salinity 
    Control Act (43 U.S.C. 1595) is amended--
            (A) in subsection (a), by striking ``pursuant to section 
        202(c)(2)(C)''; and
            (B) by adding at the end the following:
    ``(f) Funds.--The Secretary may expend funds available in the Basin 
Funds referred to in this section to carry out cost-share salinity 
measures in a manner that is consistent with the cost allocations 
required under this section.''.
        (3) Conforming amendment.--Section 246(b)(6) of the Department 
    of Agriculture Reorganization Act of 1994 (7 U.S.C. 6962(b)(6)) is 
    amended by striking ``program'' and inserting ``measures''.
    (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 of the Department of 
    Agriculture Reorganization Act of 1994 (7 U.S.C. 6962) (as amended 
    by subsection (b)(2)(B)) is amended--
            (A) in subsection (b)--
                (i) by striking paragraph (1); and
                (ii) by redesignating paragraphs (3) through (8) as 
            paragraphs (1) through (6), respectively; and
            (B) in subsection (c), by striking ``(2), (3), (4), and 
        (6)'' and inserting ``(1), (2), and (4)''.
    (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) Resource Conservation.--
        (1) Elimination.--Subtitles A, B, D, E, and F 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, 1992 (7 U.S.C. 2272a), is repealed.
    (g) 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 ``prices: 
Provided further,'' and all that follows through ``Acts.'' and 
inserting ``prices.''.
    (h) 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.

          Subtitle E--Conservation Funding and Administration

SEC. 341. CONSERVATION FUNDING AND ADMINISTRATION.

    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 and Administration

``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.--Of the funds of the Commodity Credit 
    Corporation, the Secretary shall make available $130,000,000 for 
    fiscal year 1996, and $200,000,000 for each of fiscal years 1997 
    through 2002, for providing technical assistance, cost-share 
    payments, incentive payments, and education 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-share payments, incentive payments, and education 
    under the environmental quality incentives program shall be 
    targeted at practices relating to livestock production.

``SEC. 1242. USE OF OTHER AGENCIES.

    ``(a) Committees.--In carrying out subtitles B, C, and D, the 
Secretary shall use the services of local, county, and State committees 
established under section 8(b) of the Soil Conservation and Domestic 
Allotment Act (16 U.S.C. 590h(b)).
    ``(b) Other Agencies.--
        ``(1) Use.--In carrying out subtitles C and D, the Secretary 
    may utilize the services of the Natural Resources Conservation 
    Service and the Forest Service, the Fish and Wildlife Service, 
    State forestry agencies, State fish and game agencies, land-grant 
    colleges, local, county, and State committees established under 
    section 8(b) of the Soil Conservation and Domestic Allotment Act 
    (16 U.S.C. 590h), soil and water conservation districts, and other 
    appropriate agencies.
        ``(2) Consultation.--In carrying out subtitle D at the State 
    and county levels, the Secretary shall consult with, to the extent 
    practicable, the Fish and Wildlife Service, State forestry 
    agencies, State fish and game agencies, land-grant colleges, soil-
    conservation districts, and other appropriate agencies.

``SEC. 1243. 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) Provision of Technical Assistance by Other Sources.--In the 
preparation and application of a conservation compliance plan under 
subtitle B or similar plan required as a condition for assistance from 
the Department of Agriculture, the Secretary shall permit persons to 
secure technical assistance from approved sources, as determined by the 
Secretary, other than the Natural Resources Conservation Service. If 
the Secretary rejects a technical determination made by such a source, 
the basis of the Secretary's determination must be supported by 
documented evidence.
    ``(e) Regulations.--Not later than 90 days after the date of 
enactment of the Federal Agriculture Improvement and Reform Act of 
1996, the Secretary shall issue regulations to implement the 
conservation reserve and wetlands reserve programs established under 
chapter 1 of subtitle D.''.

SEC. 342. STATE TECHNICAL COMMITTEES.

    (a) Composition.--Section 1261(c) of the Food Security Act of 1985 
(16 U.S.C. 3861(c))--
        (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 with demonstrable conservation 
    expertise;
        ``(10) nonprofit organizations with demonstrable conservation 
    expertise;
        ``(11) persons knowledgeable about conservation techniques; and
        ``(12) agribusiness.''.
    (b) Responsibilities.--Section 1262 of the Food Security Act of 
1985 (16 U.S.C. 3862) is amended--
        (1) in subsection (a), by adding at the end the following: 
    ``Each State technical committee shall provide public notice of, 
    and permit public attendance at meetings considering, issues of 
    concern related to carrying out this title.'';
        (2) in subsection (b)(1), by adding at the end the following: 
    ``Each State technical committee shall establish criteria and 
    guidelines for evaluating petitions by agricultural producers 
    regarding new conservation practices and systems not already 
    described in field office technical guides.''; and
        (3) in subsection (c)--
            (A) in paragraph (7), by striking ``and'' at the end;
            (B) by redesignating paragraph (8) as paragraph (9); and
            (C) by inserting after paragraph (7) the following:
        ``(8) establishing criteria and priorities for State 
    initiatives under the environmental quality incentives program 
    under chapter 4 of subtitle D; and''.

SEC. 343. PUBLIC NOTICE AND COMMENT FOR REVISIONS TO CERTAIN STATE 
              TECHNICAL GUIDES.

    After the date of enactment of this Act, the Secretary of 
Agriculture shall provide for public notice and comment under section 
553 of title 5, United States Code, with regard to any future revisions 
to those provisions of the Natural Resources Conservation Service State 
technical guides that are used to carry out subtitles A, B, and C of 
title XII of the Food Security Act of 1985 (16 U.S.C. 3801 et seq.).

     Subtitle F--National Natural Resources Conservation Foundation

SEC. 351. SHORT TITLE.

    This subtitle may be cited as the ``National Natural Resources 
Conservation Foundation Act''.

SEC. 352. DEFINITIONS.

    In this subtitle (unless the context otherwise requires):
        (1) Board.--The term ``Board'' means the Board of Trustees 
    established under section 354.
        (2) Department.--The term ``Department'' means the Department 
    of Agriculture.
        (3) Foundation.--The term ``Foundation'' means the National 
    Natural Resources Conservation Foundation established by section 
    353(a).
        (4) Secretary.--The term ``Secretary'' means the Secretary of 
    Agriculture.

SEC. 353. 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) Duties.--The Foundation shall--
        (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, the 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 Interest.--
        (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.

SEC. 354. 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 of the Board.
        (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 is 
allowed under section 5703 of title 5, United States Code.

SEC. 355. OFFICERS AND EMPLOYEES.

    (a) In General.--The Board may--
        (1) appoint, hire, and discharge the officers and employees of 
    the Foundation, other than appoint the initial Executive Director 
    of the Foundation;
        (2) adopt a constitution and bylaws for the Foundation that are 
    consistent with the purposes of 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. 356. 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 353(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 360 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 359, 
    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) Interests in Property.--
        (1) Interests in real property.--The Foundation may acquire, 
    hold, and dispose of lands, waters, or other interests in real 
    property by donation, gift, devise, purchase, or exchange. 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.
        (2) 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. 357. 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. 358. 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. 359. 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. 360. 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 G--Forestry

SEC. 371. 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 to be 
appropriated for each of fiscal years 1996 through 2002 such sums as 
are necessary to carry out this section.''.

SEC. 372. 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: ``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 
    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. 373. FORESTRY INCENTIVES PROGRAM.

    Section 4 of the Cooperative Forestry Assistance Act of 1978 (16 
U.S.C. 2103) is amended--
        (1) in subsection (j), by striking ``annually'' and inserting 
    ``for each of fiscal years 1996 through 2002''; and
        (2) by striking subsection (k).

SEC. 374. OPTIONAL STATE GRANTS FOR FOREST LEGACY PROGRAM.

    Section 7 of the Cooperative Forestry Assistance Act of 1978 (16 
U.S.C. 2103c) is amended--
        (1) by redesignating subsection (l) as subsection (m); and
        (2) by inserting after subsection (k) the following:
    ``(l) Optional State Grants.--
        ``(1) In general.--The Secretary shall, at the request of a 
    participating State, provide a grant to the State to carry out the 
    Forest Legacy Program in the State.
        ``(2) Administration.--If a State elects to receive a grant 
    under this subsection--
            ``(A) the Secretary shall use a portion of the funds made 
        available under subsection (m), as determined by the Secretary, 
        to provide a grant to the State; and
            ``(B) the State shall use the grant to carry out the Forest 
        Legacy Program in the State, including the acquisition by the 
        State of lands and interests in lands.''.

           Subtitle H--Miscellaneous Conservation Provisions

SEC. 381. CONSERVATION ACTIVITIES OF COMMODITY CREDIT CORPORATION.

    (a) In General.--Section 5 of the Commodity Credit Corporation 
Charter Act (15 U.S.C. 714c) is amended--
        (1) by redesignating subsection (g) as subsection (h); and
        (2) by inserting after subsection (f) the following:
    ``(g) Carry out conservation or environmental programs authorized 
by law.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
become effective on January 1, 1997.

SEC. 382. 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. 383. 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''.

SEC. 384. REPEAL OF REPORT REQUIREMENT.

    Section 1342 of title 44, United States Code, is repealed.

SEC. 385. 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 a producer on a farm who 
has contract acreage under the Agricultural Market Transition Act 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 and production 
    flexibility contract under the Agricultural Market Transition Act;
        (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 highly erodible land and wetlands 
    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 the Secretary.--In return for a contract entered into 
by a producer under this section, the Secretary shall pay the producer 
an amount that is not more than 95 percent of projected contract 
payments under the Agricultural Market Transition Act that the 
Secretary estimates the producer would otherwise have received during 
the period beginning at the time the contract is entered into under 
this section and ending September 30, 2002.
    (d) Commodity Credit Corporation.--The Secretary shall carry out 
the program authorized by this section (other than subsection (e)) 
through the Commodity Credit Corporation.
    (e) Additional Payments.--
        (1) In general.--Subject to the availability of advanced 
    appropriations, the Secretary may make payments to a producer 
    described in subsection (a), in addition to the payments provided 
    under subsection (c), to offset other estimated Federal Government 
    outlays on frequently flooded land.
        (2) Authorization of appropriations.--There are authorized to 
    be appropriated such sums as are necessary to carry out paragraph 
    (1).
    (f) Limitation on Payments.--Amounts made available for production 
flexibility contracts under section 113 shall be reduced by an amount 
that is equal to the contract payments that producers forgo under 
subsection (b)(1) of this section.

SEC. 386. CONSERVATION OF PRIVATE GRAZING LAND.

    (a) Findings.--Congress finds that--
        (1) private 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) private 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 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 land resources; and
        (10) private grazing land can be enhanced to provide many 
    benefits to all citizens of the United States through voluntary 
    cooperation among owners and managers of the land, local 
    conservation districts, and the agencies of the Department 
    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 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) Department.--The term ``Department'' means the Department 
    of Agriculture.
        (2) Private grazing land.--The term ``private grazing land'' 
    means private, State-owned, tribally-owned, and any other non-
    federally owned rangeland, pastureland, grazed forest land, and hay 
    land.
        (3) Secretary.--The term ``Secretary'' means the Secretary of 
    Agriculture.
    (d) Private Grazing Land Conservation Assistance.--
        (1) Assistance to grazing landowners and others.--Subject to 
    the availability of appropriations for this section, 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.--If funding is provided to carry out this 
        section, it shall be provided through a specific line-item in 
        the annual appropriations for the Natural Resources 
        Conservation Service.
            (B) Technical assistance and education.--Personnel of the 
        Department 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 
        farmers and ranchers who graze livestock;
            (B) Federal budgetary constraints preclude 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.--In accordance with 
    paragraph (3), 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 beef promotion and research order issued 
            under section 4 of the Beef Research and Information Act (7 
            U.S.C. 2903) in effect on the date of enactment of this 
            Act.
            (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. 387. WILDLIFE HABITAT INCENTIVES PROGRAM.

    (a) In General.--The Secretary of Agriculture, in consultation with 
the State technical committees established under section 1261 of the 
Food Security Act of 1985 (16 U.S.C. 3861), shall establish a program 
under the Natural Resources Conservation Service to be known as the 
``Wildlife Habitat Incentive Program''.
    (b) Cost-Share Payments.--Under the program, the Secretary shall 
make cost-share payments to landowners to develop upland wildlife, 
wetland wildlife, threatened and endangered species, fish, and other 
types of wildlife habitat approved by the Secretary.
    (c) Funding.--To carry out this section, a total of $50,000,000 
shall be made available for 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. 388. FARMLAND PROTECTION PROGRAM.

    (a) In General.--The Secretary of Agriculture shall establish and 
carry out a farmland protection program under which the Secretary shall 
purchase 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.
    (b) Conservation Plan.--Any highly erodible cropland for which a 
conservation easement or other interest is purchased under this section 
shall be subject to the requirements of a conservation plan that 
requires, at the option of the Secretary, the conversion of the 
cropland to less intensive uses.
    (c) Funding.--The Secretary shall use not more than $35,000,000 of 
the funds of the Commodity Credit Corporation to carry out this 
section.

SEC. 389. INTERIM MORATORIUM ON BYPASS FLOWS.

    (a) Moratorium.--There shall be an 18-month moratorium on any 
Forest Service decision to require bypass flows or any other 
relinquishment of the unimpaired use of a decreed water right as a 
condition of renewal or reissuance of a land use authorization permit.
    (b) Limitations.--Subsection (a) shall not affect--
        (1) obligations or authority of the Secretary of Agriculture to 
    protect public health and safety; and
        (2) obligations or authority under the Endangered Species Act 
    of 1973 (16 U.S.C. 1531 et seq.), or applicable State law.
    (c) Rules of Construction.--
        (1) Existing non-federal water rights.--Nothing in this section 
    prevents or inhibits the exercise of the use and operation of 
    existing non-Federal water rights on or above the National Forest 
    land that require land use authorization permits from the Forest 
    Service to access water supply facilities.
        (2) Renewal or reissuance of expiring land use authorization 
    for decreed water rights.--Nothing in this section prevents or 
    inhibits the renewal or reissuance of expiring land use 
    authorizations for decreed water rights. The Forest Service may 
    extend, as needed, any expiring land use authorization for such 
    time as is necessary to incorporate the results of the study 
    authorized by subsection (d).
    (d) Study of Water Rights Across Federal Lands.--
        (1) Establishment.--Not later than 60 days after the date of 
    enactment of this Act, there shall be established a Water Rights 
    Task Force to study the subjects described in paragraph (3).
        (2) Membership.--The Task Force shall be composed of 7 members 
    appointed as follows:
            (A) 1 member shall be appointed by the Secretary of 
        Agriculture.
            (B) 2 members shall be appointed by the Speaker of the 
        House of Representatives and 1 member shall be appointed by the 
        Minority Leader of the House of Representatives.
            (C) 2 members shall be appointed by the Majority Leader of 
        the Senate and 1 member shall be appointed by the Minority 
        Leader of the Senate.
        (3) Subjects to be studied.--The Task Force shall study and 
    make recommendations on--
            (A) whether Federal water rights should be acquired for 
        environmental protection on National Forest land;
            (B) measures necessary to protect the free exercise of non-
        Federal water rights requiring easements and permits from the 
        Forest Service;
            (C) the protection of minimum instream flows for 
        environmental and watershed management purposes on National 
        Forest land through purchases or exchanges from willing sellers 
        in accordance with State law;
            (D) the effects of any of the recommendations made under 
        this paragraph on existing State laws, regulations, and customs 
        of water usage; and
            (E) measures that would be useful in avoiding or resolving 
        conflicts between the Forest Service's responsibilities for 
        natural resource and environmental protection, the public 
        interest, and the property rights and interests of water 
        holders with special use permits for water facilities, 
        including the study of the Federal acquisition of water rights, 
        dispute resolution, mitigation, and compensation.
        (4) Final report.--As soon as practicable, but not later than 1 
    year, after the date of enactment of this Act, the Task Force shall 
    provide the final report of the Task Force to--
            (A) the Secretary of Agriculture;
            (B) the Speaker of the House of Representatives;
            (C) the President pro tempore of the Senate;
            (D) the Chairman of the Committee on Agriculture of the 
        House of Representatives;
            (E) the Chairman of the Committee on Agriculture, 
        Nutrition, and Forestry of the Senate;
            (F) the Chairman of the Committee on Resources of the House 
        of Representatives; and
            (G) the Chairman of the Committee on Energy and Natural 
        Resources of the Senate.
        (5) Authorization of funds.--The Secretary of Agriculture shall 
    use funds made available for salaries and administrative expenses 
    of the Department of Agriculture to carry out this subsection.

SEC. 390. EVERGLADES ECOSYSTEM RESTORATION.

    (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 (referred to in 
this section as the ``Secretary'')--
        (1) shall be entitled to receive the funds made available under 
    subsection (a);
        (2) shall accept the funds; and
        (3) shall use the funds to--
            (A) conduct restoration activities in the Everglades 
        ecosystem in South Florida, which shall include the acquisition 
        of real property and interests in real property located within 
        the Everglades ecosystem; and
            (B) fund resource protection and resource maintenance 
        activities in the Everglades ecosystem.
    (c) Savings Provision.--Nothing in this subsection precludes the 
Secretary from transferring 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.--The Secretary shall use the funds made available 
under subsection (a) for restoration activities referred to in 
subsection (b)(3) not later than December 31, 1999.
    (e) Report to Congress.--For each of calendar years 1996 through 
1999, the Secretary shall submit an annual report to Congress 
describing all activities carried out under subsection (b)(3).
    (f) Separate and Additional Everglades Restoration Account.--
        (1) Establishment.--There is established in the Treasury a 
    special account (to be known as the ``Everglades Restoration 
    Account''), which shall consist of such funds as may be deposited 
    in the account under paragraph (2). The account shall be separate, 
    and in addition to, funds deposited in the Treasury under 
    subsection (a).
        (2) Source of funds for account.--
            (A) Proceeds from surplus property.--
                (i) In general.--Subject to subparagraph (B), the 
            Administrator shall deposit in the special account all 
            funds received by the Administrator, on or after the date 
            of enactment of this Act, from the disposal pursuant to the 
            Federal Property and Administrative Services Act of 1949 
            (40 U.S.C. 471 et seq.) of surplus real property located in 
            the State of Florida.
                (ii) Availability and disposition of federal land.--

                    (I) Identification.--Any Federal real property 
                located in the State of Florida (excluding lands under 
                the administrative jurisdiction of the Secretary that 
                are set aside for conservation purposes) shall be 
                identified for disposal or exchange under this 
                subsection and shall be presumed available for purposes 
                of this subsection unless the head of the agency 
                controlling the property determines that there is a 
                compelling program need for any property identified by 
                the Secretary.
                    (II) Availability.--Property identified by the 
                Secretary for which there is no demonstrated compelling 
                program need shall, not later than 90 days after a 
                request by the Secretary, be reported to the 
                Administrator and shall be made available to the 
                Administrator who shall consider the property to be 
                surplus property for purposes of the Federal Property 
                and Administrative Services Act of 1949 (40 U.S.C. 471 
                et seq.).
                    (III) Prioritization of disposition.--The 
                Administrator may prioritize the disposition of 
                property made available under this subparagraph to 
                permit the property to be sold as quickly as 
                practicable in a manner that is consistent with the 
                best interests of the Federal Government.

            (B) Limit on total amount of deposits.--The total amount of 
        funds deposited in the special account under subparagraph (A) 
        shall not exceed $100,000,000.
            (C) Effect on closure of military installations.--Nothing 
        in this section alters the disposition of any proceeds arising 
        from the disposal of real property pursuant to a base closure 
        law.
        (3) Use of special account.--Funds in the special account shall 
    be available to the Secretary until expended under this paragraph. 
    The Secretary shall use funds in the special account to assist in 
    the restoration of the Everglades ecosystem in South Florida 
    through--
            (A) subject to paragraph (4), the acquisition of real 
        property and interests in real property located within the 
        Everglades ecosystem; and
            (B) the funding of resource protection and resource 
        maintenance activities in the Everglades ecosystem.
        (4) State contribution.--The Secretary may not expend any funds 
    from the special account to acquire a parcel of real property, or 
    an interest in a parcel of real property, under paragraph (3)(A) 
    unless the Secretary obtains, or has previously obtained, a 
    contribution from the State of Florida in an amount equal to not 
    less than 50 percent of the appraised value of the parcel or 
    interest to be acquired, as determined by the Secretary.
        (5) Definitions.--In this subsection:
            (A) Administrator.--The term ``Administrator'' means the 
        Administrator of General Services.
            (B) Base closure law.--The term ``base closure law'' means 
        each of the following:
                (i) The Defense Base Closure and Realignment Act of 
            1990 (part A of title XXIX of Public Law 101-510; 10 U.S.C. 
            2687 note).
                (ii) Title II of the Defense Authorization Amendments 
            and Base Closure and Realignment Act (Public Law 100-526; 
            10 U.S.C. 2687 note).
                (iii) Section 2687 of title 10, United States Code.
                (iv) Any other similar law enacted after the date of 
            enactment of this Act.
            (C) Everglades ecosystem.--The term ``Everglades 
        ecosystem'' means the Florida Everglades Restoration area that 
        extends from the Kissimmee River basin to Florida Bay.
            (D) Excess property.--The term ``excess property'' has the 
        meaning provided in section 3 of the Federal Property and 
        Administrative Services Act of 1949 (40 U.S.C. 472).
            (E) Executive agency.--The term ``executive agency'' has 
        the meaning provided in section 3 of the Federal Property and 
        Administrative Services Act of 1949 (40 U.S.C. 472).
            (F) Special account.--The term ``special account'' means 
        the Everglades Restoration Account established under paragraph 
        (1).
            (G) Surplus property.--The term ``surplus property'' has 
        the meaning provided in section 3 of the Federal Property and 
        Administrative Services Act of 1949 (40 U.S.C. 472).
    (g) Report To Determine the Feasibility of Additional Land 
Acquisition and Restoration Activities.--
        (1) In general.--The Secretary shall conduct an investigation 
    to determine what, if any, unreserved and unappropriated Federal 
    lands (or mineral interests in any such lands) under the 
    administrative jurisdiction of the Secretary are suitable for 
    disposal or exchange for the purpose of conducting restoration 
    activities in the Everglades region.
        (2) Conservation lands.--No lands under the administrative 
    jurisdiction of the Secretary that are set aside for conservation 
    purposes shall be identified for disposal or exchange under this 
    subsection.
        (3) Florida.--In carrying out this subsection, the Secretary 
    shall, to the maximum extent practicable, determine which lands and 
    mineral interests located within the State of Florida are suitable 
    for disposal or exchange before making the determination for 
    eligible lands or interests in other States.
        (4) Public access.--In carrying out this subsection, the 
    Secretary shall consider that in disposing of lands, the Secretary 
    shall retain such interest in the lands as may be necessary to 
    ensure that the general public is not precluded from reasonable 
    access to the lands for purposes of fishing, hunting, or other 
    recreational uses.
        (5) Report.--Not later than 1 year after the date of enactment 
    of this Act, the Secretary shall submit a report to the Committee 
    on Resources of the House of Representatives and the Committee on 
    Energy and Natural Resources of the Senate describing the results 
    of the investigation conducted under this subsection. The report 
    shall describe the specific parcels identified under this 
    subsection, establish the priorities for disposal or exchange among 
    the parcels, and estimate the values of the parcels.

SEC. 391. AGRICULTURAL AIR QUALITY RESEARCH OVERSIGHT.

    (a) Findings.--Congress finds that--
        (1) various studies have alleged that agriculture is a source 
    of PM-10 emissions;
        (2) many of these studies have often been based on erroneous 
    data;
        (3) Federal research activities are currently being conducted 
    by the Department of Agriculture to determine the true extent to 
    which agricultural activities contribute to air pollution and to 
    determine cost-effective ways in which the agricultural industry 
    can reduce any pollution that exists; and
        (4) any Federal policy recommendations that may be issued by 
    any Federal agency to address air pollution problems related to 
    agriculture or any other industrial activity should be based on 
    sound scientific findings that are subject to adequate peer review 
    and should take into account economic feasibility.
    (b) Purpose.--The purpose of this section is to encourage the 
Secretary of Agriculture to continue to strengthen vital research 
efforts related to agricultural air quality.
    (c) Oversight Coordination.--
        (1) Intergovernmental cooperation.--The Secretary shall, to the 
    maximum extent practicable with respect to the Department of 
    Agriculture and other Federal departments and agencies, ensure 
    intergovernmental cooperation in research activities related to 
    agricultural air quality and avoid duplication of the activities.
        (2) Correct data.--The Secretary shall, to the maximum extent 
    practicable, ensure that the results of any research related to 
    agricultural air quality conducted by Federal agencies not report 
    erroneous data with respect to agricultural air quality.
    (d) Task Force.--
        (1) Establishment.--The Chief of the National Resources 
    Conservation Service shall establish a task force to address 
    agricultural air quality issues.
        (2) Composition.--The task force shall be comprised of 
    employees of the Department of Agriculture, industry 
    representatives, and other experts in the fields of agriculture and 
    air quality.
        (3) Duties.--The task force shall advise the Secretary with 
    respect to the role of the Secretary for providing oversight and 
    coordination related to agricultural air quality.

                     TITLE IV--NUTRITION ASSISTANCE

SEC. 401. FOOD STAMP PROGRAM.

    (a) Disqualification of a Store or Concern.--Section 12(b)(3)(B) of 
the Food Stamp Act of 1977 (7 U.S.C. 2021(b)(3)(B)) is amended--
        (1) by striking the second parenthetical; and
        (2) by striking ``; or'' and inserting the following: ``, 
    including evidence that--
                ``(i) the ownership of the store or food concern was 
            not aware of, did not approve of, did not benefit from, and 
            was not involved in the conduct of the violation; and
                ``(ii)(I) the management of the store or food concern 
            was not aware of, did not approve of, did not benefit from, 
            and was not involved in the conduct of the violation; or
                ``(II) the management was aware of, approved of, 
            benefited from, or was involved in the conduct of no more 
            than 1 previous violation by the store or food concern; 
            or''.
    (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 ``1997''.
    (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.

    ``Effective October 1, 1995, from amounts made available to carry 
out this Act, the Secretary shall 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)).''.
    (h) Assistance for Community Food Projects.--The Food Stamp Act of 
1977 (7 U.S.C. 2011 et seq.) (as amended by subsection (g)) is amended 
by adding at the end the following:

``SEC. 25. ASSISTANCE FOR COMMUNITY FOOD PROJECTS.

    ``(a) Definition of Community Food Projects.--In this section, the 
term `community food project' means a community-based project that 
requires a 1-time infusion of Federal assistance to become self-
sustaining and that is designed to--
        ``(1) meet the food needs of low-income people;
        ``(2) increase the self-reliance of communities in providing 
    for their own food needs; and
        ``(3) promote comprehensive responses to local food, farm, and 
    nutrition issues.
    ``(b) Authority To Provide Assistance.--
        ``(1) In general.--From amounts made available to carry out 
    this Act, the Secretary may make grants to assist eligible private 
    nonprofit entities to establish and carry out community food 
    projects.
        ``(2) Limitation on grants.--The total amount of funds provided 
    as grants under this section may not exceed--
            ``(A) $1,000,000 for fiscal year 1996; and
            ``(B) $2,500,000 for each of fiscal years 1997 through 
        2002.
    ``(c) Eligible Entities.--To be eligible for a grant under 
subsection (b), a private nonprofit entity must--
        ``(1) have experience in the area of--
            ``(A) community food work, particularly concerning small 
        and medium-sized farms, including the provision of food to 
        people in low-income communities and the development of new 
        markets in low-income communities for agricultural producers; 
        or
            ``(B) job training and business development activities for 
        food-related activities in low-income communities;
        ``(2) demonstrate competency to implement a project, provide 
    fiscal accountability, collect data, and prepare reports and other 
    necessary documentation; and
        ``(3) demonstrate a willingness to share information with 
    researchers, practitioners, and other interested parties.
    ``(d) Preference for Certain Projects.--In selecting community food 
projects to receive assistance under subsection (b), the Secretary 
shall give a preference to projects designed to--
        ``(1) develop linkages between 2 or more sectors of the food 
    system;
        ``(2) support the development of entrepreneurial projects;
        ``(3) develop innovative linkages between the for-profit and 
    nonprofit food sectors; or
        ``(4) encourage long-term planning activities and multi-system, 
    interagency approaches.
    ``(e) Matching Funds Requirements.--
        ``(1) Requirements.--The Federal share of the cost of 
    establishing or carrying out a community food project that receives 
    assistance under subsection (b) may not exceed 50 percent of the 
    cost of the project during the term of the grant.
        ``(2) Calculation.--In providing for the non-Federal share of 
    the cost of carrying out a community food project, the entity 
    receiving the grant shall provide for the share through a payment 
    in cash or in kind, fairly evaluated, including facilities, 
    equipment, or services.
        ``(3) Sources.--An entity may provide for the non-Federal share 
    through State government, local government, or private sources.
    ``(f) Term of Grant.--
        ``(1) Single grant.--A community food project may be supported 
    by only a single grant under subsection (b).
        ``(2) Term.--The term of a grant under subsection (b) may not 
    exceed 3 years.
    ``(g) Technical Assistance and Related Information.--
        ``(1) Technical assistance.--In carrying out this section, the 
    Secretary may provide technical assistance regarding community food 
    projects, processes, and development to an entity seeking the 
    assistance.
        ``(2) Sharing Information.--
            ``(A) In general.--The Secretary may provide for the 
        sharing of information concerning community food projects and 
        issues among and between government, private for-profit and 
        nonprofit groups, and the public through publications, 
        conferences, and other appropriate forums.
            ``(B) Other interested parties.--The Secretary may share 
        information concerning community food projects with 
        researchers, practitioners, and other interested parties.
    ``(h) Evaluation.--
        ``(1) In general.--The Secretary shall provide for the 
    evaluation of the success of community food projects supported 
    using funds under this section.
        ``(2) Report.--Not later than January 30, 2002, the Secretary 
    shall submit a report to Congress regarding the results of the 
    evaluation.''.

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'';
        (2) in subsection (d)(2), by striking ``1995'' and inserting 
    ``2002''; and
        (3) by adding at the end the following:
    ``(l) Carried-Over Funds.--Not more than 20 percent of any 
commodity supplemental food program food funds carried over under this 
section 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 KITCHEN AND FOOD BANK 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 ``1992 through 
        1995'' and inserting ``Subsequent''; 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--AGRICULTURAL PROMOTION
             Subtitle A--Commodity Promotion and Evaluation

SEC. 501. COMMODITY PROMOTION AND EVALUATION.

    (a) Commodity Promotion Law Defined.--In this section, the term 
``commodity promotion law'' means a Federal law that provides for the 
establishment and operation of a promotion program regarding an 
agricultural commodity that includes a combination of promotion, 
research, industry information, or consumer information activities, is 
funded by mandatory assessments on producers or processors, and is 
designed to maintain or expand markets and uses for the commodity (as 
determined by the Secretary). The term includes--
        (1) the marketing promotion provisions under section 8c(6)(I) 
    of the Agricultural Adjustment Act (7 U.S.C. 608c(6)(I)), reenacted 
    with amendments by the Agricultural Marketing Agreement Act of 
    1937;
        (2) Public Law 89-502 (7 U.S.C. 2101 et seq.);
        (3) title III of Public Law 91-670 (7 U.S.C. 2611 et seq.);
        (4) Public Law 93-428 (7 U.S.C. 2701 et seq.);
        (5) Public Law 94-294 (7 U.S.C. 2901 et seq.);
        (6) subtitle B of title I of Public Law 98-180 (7 U.S.C. 4501 
    et seq.);
        (7) Public Law 98-590 (7 U.S.C. 4601 et seq.);
        (8) subtitle B of title XVI of Public Law 99-198 (7 U.S.C. 4801 
    et seq.);
        (9) subtitle C of title XVI of Public Law 99-198 (7 U.S.C. 4901 
    et seq.);
        (10) subtitle B of title XIX of Public Law 101-624 (7 U.S.C. 
    6101 et seq.);
        (11) subtitle E of title XIX of Public Law 101-624 (7 U.S.C. 
    6301 et seq.);
        (12) subtitle H of title XIX of Public Law 101-624 (7 U.S.C. 
    6401 et seq.);
        (13) Public Law 103-190 (7 U.S.C. 6801 et seq.);
        (14) Public Law 103-407 (7 U.S.C. 7101 et seq.);
        (15) subtitle B;
        (16) subtitle C;
        (17) subtitle D; or
        (18) subtitle E.
    (b) Findings.--Congress finds the following:
        (1) It is in the national public interest and vital to the 
    welfare of the agricultural economy of the United States to 
    maintain and expand existing markets and develop new markets and 
    uses for agricultural commodities through industry-funded, 
    Government-supervised, generic commodity promotion programs 
    established under commodity promotion laws.
        (2) These generic commodity promotion programs, funded by the 
    agricultural producers or processors who most directly reap the 
    benefits of the programs and supervised by the Secretary of 
    Agriculture, provide a unique opportunity for producers and 
    processors to inform consumers about their products.
        (3) The central congressional purpose underlying each commodity 
    promotion law has always been to maintain and expand markets for 
    the agricultural commodity covered by the law, rather than to 
    maintain or expand the share of those markets held by any 
    individual producer or processor.
        (4) The commodity promotion laws were neither designed nor 
    intended to prohibit or restrict, and the promotion programs 
    established and funded pursuant to these laws do not prohibit or 
    restrict, individual advertising or promotion of the covered 
    commodities by any producer, processor, or group of producers or 
    processors.
        (5) It has never been the intent of Congress for the generic 
    commodity promotion programs established and funded by the 
    commodity promotion laws to replace the individual advertising and 
    promotion efforts of producers or processors.
        (6) An individual producer's or processor's own advertising 
    initiatives are typically designed to increase the share of the 
    market held by that producer or processor rather than to increase 
    or expand the overall size of the market.
        (7) In contrast, a generic commodity promotion program is 
    intended and designed to maintain or increase the overall demand 
    for the agricultural commodity covered by the program and increase 
    the size of the market for that commodity, often by utilizing 
    promotion methods and techniques that individual producers and 
    processors typically are unable, or have no incentive, to employ.
        (8) The commodity promotion laws establish promotion programs 
    that operate as ``self-help'' mechanisms for producers and 
    processors to fund generic promotions for covered commodities 
    which, under the required supervision and oversight of the 
    Secretary of Agriculture--
            (A) further specific national governmental goals, as 
        established by Congress; and
            (B) produce nonideological and commercial communication the 
        purpose of which is to further the governmental policy and 
        objective of maintaining and expanding the markets for the 
        covered commodities.
        (9) While some commodity promotion laws grant a producer or 
    processor the option of crediting individual advertising conducted 
    by the producer or processor for all or a portion of the producer's 
    or processor's marketing promotion assessments, all promotion 
    programs established under the commodity promotion laws, both those 
    programs that permit credit for individual advertising and those 
    programs that do not contain such provisions, are very narrowly 
    tailored to fulfill the congressional purposes of the commodity 
    promotion laws without impairing or infringing the legal or 
    constitutional rights of any individual producer or processor.
        (10) These generic commodity promotion programs are of 
    particular benefit to small producers who often lack the resources 
    or market power to advertise on their own and who are otherwise 
    often unable to benefit from the economies of scale available in 
    promotion and advertising.
        (11) Periodic independent evaluation of the effectiveness of 
    these generic commodity promotion programs will assist Congress and 
    the Secretary of Agriculture in ensuring that the objectives of the 
    programs are met.
    (c) Independent Evaluation of Promotion Program Effectiveness.--
Except as otherwise provided by law, each commodity board established 
under the supervision and oversight of the Secretary of Agriculture 
pursuant to a commodity promotion law shall, not less often than every 
5 years, authorize and fund, from funds otherwise available to the 
board, an independent evaluation of the effectiveness of the generic 
commodity promotion programs and other programs conducted by the board 
pursuant to a commodity promotion law. The board shall submit to the 
Secretary, and make available to the public, the results of each 
periodic independent evaluation conducted under this subsection.
    (d) Administrative Costs.--The Secretary shall annually provide to 
the Committee on Agriculture of the House of Representatives and the 
Committee on Agriculture, Nutrition, and Forestry of the Senate 
information on administrative expenses on programs established under 
commodity promotion laws.

Subtitle B--Issuance of Orders for Promotion, Research, and Information 
             Activities Regarding Agricultural Commodities

SEC. 511. SHORT TITLE.

    This subtitle may be cited as the ``Commodity Promotion, Research, 
and Information Act of 1996''.

SEC. 512. FINDINGS AND PURPOSE.

    (a) Findings.--Congress finds the following:
        (1) The production of agricultural commodities plays a 
    significant role in the economy of the United States. Thousands of 
    producers in the United States are involved in the production of 
    agricultural commodities, and such commodities are consumed by 
    millions of people throughout the United States and foreign 
    countries.
        (2) Agricultural commodities must be of high quality, readily 
    available, handled properly, and marketed efficiently to ensure 
    that consumers have an adequate supply.
        (3) The maintenance and expansion of existing markets and the 
    development of new markets for agricultural commodities through 
    generic commodity promotion, research, and information programs are 
    vital to the welfare of persons engaged in the production, 
    marketing, and consumption of such commodities, as well as to the 
    general economy of the United States.
        (4) Generic promotion, research, and information activities for 
    agricultural commodities play a unique role in advancing the demand 
    for such commodities, since such activities increase the total 
    market for a product to the benefit of consumers and all producers. 
    These generic activities complement branded advertising 
    initiatives, which are aimed at increasing the market share of 
    individual competitors, and are of particular benefit to small 
    producers who lack the resources or market power to advertise on 
    their own. These generic activities do not impede the branded 
    advertising efforts of individual firms, but instead increase 
    general market demand for an agricultural commodity using methods 
    that individual companies do not have the incentive to employ.
        (5) Generic promotion, research, and information activities for 
    agricultural commodities, paid by the producers and others in the 
    industry who reap the benefits of such activities, provide a unique 
    opportunity for producers to inform consumers about a particular 
    agricultural commodity.
        (6) It is important to ensure that generic promotion, research, 
    and information activities for agricultural commodities be carried 
    out in an effective and coordinated manner designed to strengthen 
    the position of the commodities in the marketplace and to maintain 
    and expand their markets and uses. Independent evaluation of the 
    effectiveness of the generic promotion activities of these programs 
    will assist the Secretary of Agriculture and Congress in ensuring 
    that these objectives are met.
        (7) The cooperative development, financing, and implementation 
    of a coordinated national program of research, promotion, and 
    information regarding agricultural commodities are necessary to 
    maintain and expand existing markets and to develop new markets for 
    these commodities.
        (8) Agricultural commodities move in interstate and foreign 
    commerce, and agricultural commodities and their products that do 
    not move in such channels of commerce directly burden or affect 
    interstate commerce in agricultural commodities and their products.
        (9) Commodity promotion programs have the ability to provide 
    significant conservation benefits to producers and the public.
    (b) Purpose.--The purpose of this subtitle is to authorize the 
establishment, through the exercise by the Secretary of Agriculture of 
the authority provided in this subtitle, of an orderly program for 
developing, financing, and carrying out an effective, continuous, and 
coordinated program of generic promotion, research, and information 
regarding agricultural commodities designed to--
        (1) strengthen the position of agricultural commodity 
    industries in the marketplace;
        (2) maintain and expand existing domestic and foreign markets 
    and uses for agricultural commodities;
        (3) develop new markets and uses for agricultural commodities; 
    or
        (4) assist producers in meeting their conservation objectives.
    (c) Rule of Construction.--Nothing in this subtitle provides for 
the control of production or otherwise limits the right of any person 
to produce, handle, or import an agricultural commodity.

SEC. 513. DEFINITIONS.

    In this subtitle (unless the context otherwise requires):
        (1) Agricultural commodity.--The term ``agricultural 
    commodity'' means--
            (A) agricultural, horticultural, viticultural, and dairy 
        products;
            (B) livestock and the products of livestock;
            (C) the products of poultry and bee raising;
            (D) the products of forestry;
            (E) other commodities raised or produced on farms, as 
        determined appropriate by the Secretary; and
            (F) products processed or manufactured from products 
        specified in the preceding subparagraphs, as determined 
        appropriate by the Secretary.
        (2) Board.--The term ``board'' means a board established under 
    an order issued under section 514.
        (3) Conflict of interest.--The term ``conflict of interest'' 
    means a situation in which a member or employee of a board has a 
    direct or indirect financial interest in a person that performs a 
    service for, or enters into a contract with, a board for anything 
    of economic value.
        (4) Department.--The term ``Department'' means the Department 
    of Agriculture.
        (5) First handler.--The term ``first handler'' means the first 
    person who buys or takes possession of an agricultural commodity 
    from a producer for marketing. If a producer markets the 
    agricultural commodity directly to consumers, the producer shall be 
    considered to be the first handler with respect to the agricultural 
    commodity produced by the producer.
        (6) Importer.--The term ``importer'' means any person who 
    imports an agricultural commodity from outside the United States 
    for sale in the United States as a principal or as an agent, 
    broker, or consignee of any person.
        (7) Information.--The term ``information'' means information 
    and programs that are designed to increase--
            (A) efficiency in processing; and
            (B) the development of new markets, marketing strategies, 
        increased marketing efficiency, and activities to enhance the 
        image of agricultural commodities on a national or 
        international basis.
        (8) Market.--The term ``market'' means to sell or to otherwise 
    dispose of an agricultural commodity in interstate, foreign, or 
    intrastate commerce.
        (9) Order.--The term ``order'' means an order issued by the 
    Secretary under section 514 that provides for a program of generic 
    promotion, research, and information regarding agricultural 
    commodities designed to--
            (A) strengthen the position of agricultural commodity 
        industries in the marketplace;
            (B) maintain and expand existing domestic and foreign 
        markets and uses for agricultural commodities;
            (C) develop new markets and uses for agricultural 
        commodities; or
            (D) assist producers in meeting their conservation 
        objectives.
        (10) Person.--The term ``person'' means any individual, group 
    of individuals, partnership, corporation, association, cooperative, 
    or any other legal entity.
        (11) Producer.--The term ``producer'' means any person who is 
    engaged in the production and sale of an agricultural commodity in 
    the United States and who owns, or shares the ownership and risk of 
    loss of, the agricultural commodity.
        (12) Promotion.--The term ``promotion'' means any action taken 
    by a board under an order, including paid advertising, to present a 
    favorable image of an agricultural commodity to the public to 
    improve the competitive position of the agricultural commodity in 
    the marketplace and to stimulate sales of the agricultural 
    commodity.
        (13) Research.--The term ``research'' means any type of test, 
    study, or analysis designed to advance the image, desirability, 
    use, marketability, production, product development, or quality of 
    an agricultural commodity.
        (14) Secretary.--The term ``Secretary'' means the Secretary of 
    Agriculture.
        (15) State.--The term ``State'' means any of the States, the 
    District of Columbia, the Commonwealth of Puerto Rico, or any 
    territory or possession of the United States.
        (16) Suspend.--The term ``suspend'' means to issue a rule under 
    section 553 of title 5, United States Code, to temporarily prevent 
    the operation of an order during a particular period of time 
    specified in the rule.
        (17) Terminate.--The term ``terminate'' means to issue a rule 
    under section 553 of title 5, United States Code, to cancel 
    permanently the operation of an order beginning on a date certain 
    specified in the rule.
        (18) United states.--The term ``United States'' means 
    collectively the 50 States, the District of Columbia, the 
    Commonwealth of Puerto Rico and the territories and possessions of 
    the United States.

SEC. 514. ISSUANCE OF ORDERS.

    (a) Issuance Authorized.--
        (1) In general.--To effectuate the purpose of this subtitle, 
    the Secretary may issue, and amend from time to time, orders 
    applicable to--
            (A) the producers of an agricultural commodity;
            (B) the first handlers of the agricultural commodity and 
        other persons in the marketing chain as appropriate; and
            (C) the importers of the agricultural commodity, if imports 
        of the agricultural commodity are subject to assessment under 
        section 516(f).
        (2) National scope.--Each order issued under this section shall 
    be national in scope.
    (b) Procedure for Issuance.--
        (1) Development or receipt of proposed order.--A proposed order 
    with respect to an agricultural commodity may be--
            (A) prepared by the Secretary at any time; or
            (B) submitted to the Secretary by--
                (i) an association of producers of the agricultural 
            commodity; or
                (ii) any other person that may be affected by the 
            issuance of an order with respect to the agricultural 
            commodity.
        (2) Consideration of proposed order.--If the Secretary 
    determines that a proposed order is consistent with and will 
    effectuate the purpose of this subtitle, the Secretary shall 
    publish the proposed order in the Federal Register and give due 
    notice and opportunity for public comment on the proposed order.
        (3) Existence of other orders.--In deciding whether a proposal 
    for an order is consistent with and will effectuate the purpose of 
    this subtitle, the Secretary may consider the existence of other 
    Federal promotion, research, and information programs or orders 
    issued or developed pursuant to any other law.
        (4) Preparation of final order.--After notice and opportunity 
    for public comment under paragraph (2) regarding a proposed order, 
    the Secretary shall take into consideration the comments received 
    in preparing a final order. The Secretary shall ensure that the 
    final order is in conformity with the terms, conditions, and 
    requirements of this subtitle.
    (c) Issuance and Effective Date.--If the Secretary determines that 
the final order developed with respect to an agricultural commodity is 
consistent with and will effectuate the purpose of this subtitle, the 
Secretary shall issue the final order. Except in the case of an order 
for which an initial referendum is conducted under section 518(a), the 
final order shall be issued and become effective not later than 270 
days after the date of publication of the proposed order that was the 
basis for the final order.
    (d) Amendments.--From time to time the Secretary may amend any 
order, consistent with the requirements of section 523.

SEC. 515. REQUIRED TERMS IN ORDERS.

    (a) In General.--Each order shall contain the terms and conditions 
specified in this section.
    (b) Board.--
        (1) Establishment.--Each order shall establish a board to carry 
    out a program of generic promotion, research, and information 
    regarding the agricultural commodity covered by the order and 
    intended to effectuate the purpose of this subtitle.
        (2) Board membership.--
            (A) Number of members.--Each board shall consist of the 
        number of members considered by the Secretary, in consultation 
        with the agricultural commodity industry involved, to be 
        appropriate to administer the order. In addition to members, 
        the Secretary may also provide for alternates on the board.
            (B) Appointment.--The Secretary shall appoint the members 
        and any alternates of a board from among producers of the 
        agricultural commodity and first handlers and others in the 
        marketing chain as appropriate. If imports of the agricultural 
        commodity covered by an order are subject to assessment under 
        section 516(f), the Secretary shall also appoint importers as 
        members of the board and as alternates if alternates are 
        included on the board. The Secretary may appoint 1 or more 
        members of the general public to each board.
            (C) Nominations.--The Secretary may make appointments from 
        nominations made pursuant to the method set forth in the order.
            (D) Geographical representation.--To ensure fair and 
        equitable representation of the agricultural commodity industry 
        covered by an order, the composition of each board shall 
        reflect the geographical distribution of the production of the 
        agricultural commodity involved in the United States and the 
        quantity or value of the agricultural commodity imported into 
        the United States.
        (3) Reapportionment of board membership.--In accordance with 
    rules issued by the Secretary, at least once in each 5-year period, 
    but not more frequently than once in each 3-year period, each board 
    shall--
            (A) review the geographical distribution in the United 
        States of the production of the agricultural commodity covered 
        by the order involved and the quantity or value of the 
        agricultural commodity imported into the United States; and
            (B) if warranted, recommend to the Secretary the 
        reapportionment of the board membership to reflect changes in 
        the geographical distribution of the production of the 
        agricultural commodity and the quantity or value of the 
        imported agricultural commodity.
        (4) Notice.--
            (A) Vacancies.--Each order shall provide for notice of 
        board vacancies to the agricultural commodity industry 
        involved.
            (B) Meetings.--Each board shall provide the Secretary with 
        prior notice of meetings of the board to permit the Secretary, 
        or a designated representative of the Secretary, to attend the 
        meetings.
        (5) Term of office.--
            (A) In general.--The members and any alternates of a board 
        shall each serve for a term of 3 years, except that the members 
        and any alternates initially appointed to a board shall serve 
        for terms of not more than 2, 3, and 4 years, as specified by 
        the order.
            (B) Limitation on consecutive terms.--A member or alternate 
        may serve not more than 2 consecutive terms.
            (C) Continuation of term.--Notwithstanding subparagraph 
        (B), each member or alternate shall continue to serve until a 
        successor is appointed by the Secretary.
            (D) Vacancies.--A vacancy arising before the expiration of 
        a term of office of an incumbent member or alternate of a board 
        shall be filled in a manner provided for in the order.
        (6) Compensation.--
            (A) In general.--Members and any alternates of a board 
        shall serve without compensation.
            (B) Travel expenses.--If approved by a board, members or 
        alternates shall be reimbursed for reasonable travel expenses, 
        which may include a per diem allowance or actual subsistence 
        incurred while away from their homes or regular places of 
        business in the performance of services for the board.
    (c) Powers and Duties of a Board.--Each order shall specify the 
powers and duties of the board established under the order, which shall 
include the power and duty--
        (1) to administer the order in accordance with its terms and 
    conditions and to collect assessments;
        (2) to develop and recommend to the Secretary for approval such 
    bylaws as may be necessary for the functioning of the board and 
    such rules as may be necessary to administer the order, including 
    activities authorized to be carried out under the order;
        (3) to meet, organize, and select from among the members of the 
    board a chairperson, other officers, and committees and 
    subcommittees, as the board determines to be appropriate;
        (4) to employ persons, other than the members, as the board 
    considers necessary to assist the board in carrying out its duties, 
    and to determine the compensation and specify the duties of the 
    persons;
        (5) subject to subsection (e), to develop and carry out generic 
    promotion, research, and information activities relating to the 
    agricultural commodity covered by the order;
        (6) to prepare and submit for the approval of the Secretary, 
    before the beginning of each fiscal year, rates of assessment under 
    section 517 and an annual budget of the anticipated expenses to be 
    incurred in the administration of the order, including the probable 
    cost of each promotion, research, and information activity proposed 
    to be developed or carried out by the board;
        (7) to borrow funds necessary for the startup expenses of the 
    order;
        (8) subject to subsection (f), to enter into contracts or 
    agreements to develop and carry out generic promotion, research, 
    and information activities relating to the agricultural commodity 
    covered by the order;
        (9) to pay the cost of the activities with assessments 
    collected under section 517, earnings from invested assessments, 
    and other funds;
        (10) to keep records that accurately reflect the actions and 
    transactions of the board, to keep and report minutes of each 
    meeting of the board to the Secretary, and to furnish the Secretary 
    with any information or records the Secretary requests;
        (11) to receive, investigate, and report to the Secretary 
    complaints of violations of the order; and
        (12) to recommend to the Secretary such amendments to the order 
    as the board considers appropriate.
    (d) Prohibited Activities.--A board may not engage in, and shall 
prohibit the employees and agents of the board from engaging in--
        (1) any action that would be a conflict of interest;
        (2) using funds collected by the board under the order, any 
    action undertaken for the purpose of influencing any legislation or 
    governmental action or policy other than recommending to the 
    Secretary amendments to the order; and
        (3) any advertising, including promotion, research, and 
    information activities authorized to be carried out under the 
    order, that may be false or misleading or disparaging to another 
    agricultural commodity.
    (e) Activities and Budgets.--
        (1) Activities.--Each order shall require the board established 
    under the order to submit to the Secretary for approval plans and 
    projects for promotion, research, or information relating to the 
    agricultural commodity covered by the order.
        (2) Budgets.--
            (A) Submission to secretary.--Each order shall require the 
        board established under the order to submit to the Secretary 
        for approval a budget of its anticipated annual expenses and 
        disbursements to be paid to administer the order. The budget 
        shall be submitted before the beginning of a fiscal year and as 
        frequently as may be necessary after the beginning of the 
        fiscal year.
            (B) Reimbursement of secretary.--Each order shall require 
        that the Secretary be reimbursed for all expenses incurred by 
        the Secretary in the implementation, administration, and 
        supervision of the order, including all referenda costs 
        incurred in connection with the order.
        (3) Incurring expenses.--A board may incur the expenses 
    described in paragraph (2) and other expenses for the 
    administration, maintenance, and functioning of the board as 
    authorized by the Secretary.
        (4) Payment of expenses.--Expenses incurred under paragraph (3) 
    shall be paid by a board using assessments collected under section 
    517, earnings obtained from assessments, and other income of the 
    board. Any funds borrowed by the board shall be expended only for 
    startup costs and capital outlays.
        (5) Limitation on spending.--For fiscal years beginning 3 or 
    more years after the date of the establishment of a board, the 
    board may not expend for administration (except for reimbursements 
    to the Secretary required under paragraph (2)(B)), maintenance, and 
    functioning of the board in a fiscal year an amount that exceeds 15 
    percent of the assessment and other income received by the board 
    for the fiscal year.
    (f) Contracts and Agreements.--
        (1) In general.--Each order shall provide that, with the 
    approval of the Secretary, the board established under the order 
    may--
            (A) enter into contracts and agreements to carry out 
        generic promotion, research, and information activities 
        relating to the agricultural commodity covered by the order, 
        including contracts and agreements with producer associations 
        or other entities as considered appropriate by the Secretary; 
        and
            (B) pay the cost of approved generic promotion, research, 
        and information activities using assessments collected under 
        section 517, earnings obtained from assessments, and other 
        income of the board.
        (2) Requirements.--Each contract or agreement shall provide 
    that any person who enters into the contract or agreement with the 
    board shall--
            (A) develop and submit to the board a proposed activity 
        together with a budget that specifies the cost to be incurred 
        to carry out the activity;
            (B) keep accurate records of all of its transactions 
        relating to the contract or agreement;
            (C) account for funds received and expended in connection 
        with the contract or agreement;
            (D) make periodic reports to the board of activities 
        conducted under the contract or agreement; and
            (E) make such other reports as the board or the Secretary 
        considers relevant.
    (g) Records of Board.--
        (1) In general.--Each order shall require the board established 
    under the order--
            (A) to maintain such records as the Secretary may require 
        and to make the records available to the Secretary for 
        inspection and audit;
            (B) to collect and submit to the Secretary, at any time the 
        Secretary may specify, any information the Secretary may 
        request; and
            (C) to account for the receipt and disbursement of all 
        funds in the possession, or under the control, of the board.
        (2) Audits.--Each order shall require the board established 
    under the order to have--
            (A) its records audited by an independent auditor at the 
        end of each fiscal year; and
            (B) a report of the audit submitted directly to the 
        Secretary.
    (h) Periodic Evaluation.--In accordance with section 501(c), each 
order shall require the board established under the order to provide 
for the independent evaluation of all generic promotion, research, and 
information activities undertaken under the order.
    (i) Books and Records of Persons Covered by Order.--
        (1) In general.--Each order shall require that producers, first 
    handlers and other persons in the marketing chain as appropriate, 
    and importers covered by the order shall--
            (A) maintain records sufficient to ensure compliance with 
        the order and regulations;
            (B) submit to the board established under the order any 
        information required by the board to carry out its 
        responsibilities under the order; and
            (C) make the records described in subparagraph (A) 
        available, during normal business hours, for inspection by 
        employees or agents of the board or the Department, including 
        any records necessary to verify information required under 
        subparagraph (B).
        (2) Time requirement.--Any record required to be maintained 
    under paragraph (1) shall be maintained for such time period as the 
    Secretary may prescribe.
        (3) Other information.--The Secretary may use, and may 
    authorize the board to use under this subtitle, information 
    regarding persons subject to an order that is collected by the 
    Department under any other law.
        (4) Confidentiality of information.--
            (A) In general.--Except as otherwise provided in this 
        subtitle, all information obtained under paragraph (1) or as 
        part of a referendum under section 518 shall be kept 
        confidential by all officers, employees, and agents of the 
        Department and of the board.
            (B) Disclosure.--Information referred to in subparagraph 
        (A) may be disclosed only if--
                (i) the Secretary considers the information relevant; 
            and
                (ii) the information is revealed in a judicial 
            proceeding 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.
            (C) Other exceptions.--This paragraph shall not prohibit--
                (i) the issuance of general statements based on reports 
            or on information relating to a number of persons subject 
            to an order 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 any person violating any order and a statement 
            of the particular provisions of the order violated by the 
            person.
            (D) Penalty.--Any person who willfully violates this 
        subsection shall be subject, on conviction, to a fine of not 
        more than $1,000 or to imprisonment for not more than 1 year, 
        or both.
        (5) Withholding information.--This subsection shall not 
    authorize the withholding of information from Congress.

SEC. 516. PERMISSIVE TERMS IN ORDERS.

    (a) Exemptions.--An order issued under this subtitle may contain--
        (1) authority for the Secretary to exempt from the order any de 
    minimis quantity of an agricultural commodity otherwise covered by 
    the order; and
        (2) authority for the board established under the order to 
    require satisfactory safeguards against improper use of the 
    exemption.
    (b) Different Payment and Reporting Schedules.--An order issued 
under this subtitle may contain authority for the board established 
under the order to designate different payment and reporting schedules 
to recognize differences in agricultural commodity industry marketing 
practices and procedures used in different production and importing 
areas.
    (c) Activities.--An order issued under this subtitle may contain 
authority to develop and carry out research, promotion, and information 
activities designed to expand, improve, or make more efficient the 
marketing or use of the agricultural commodity covered by the order in 
domestic and foreign markets. Section 515(e) shall apply with respect 
to activities authorized under this subsection.
    (d) Reserve Funds.--An order issued under this subtitle may contain 
authority to reserve funds from assessments collected under section 517 
to permit an effective and continuous coordinated program of research, 
promotion, and information in years when the yield from assessments may 
be reduced, except that the amount of funds reserved may not exceed the 
greatest aggregate amount of the anticipated disbursements specified in 
budgets approved under section 515(e) by the Secretary for any 2 fiscal 
years.
    (e) Credits.--
        (1) Generic activities.--An order issued under this subtitle 
    may contain authority to provide credits of assessments for those 
    individuals who contribute to other similar generic research, 
    promotion, and information programs at the State, regional, or 
    local level.
        (2) Branded activities.--
            (A) In general.--The Secretary may permit a farmer 
        cooperative that engages in branded activities relating to the 
        marketing of the products of members of the cooperative to 
        receive an annual credit for the activities and related 
        expenditures in the form of a deduction of the total cost of 
        the activities and related expenditures from the amount of any 
        assessment that would otherwise be required to be paid by the 
        producer members of the cooperative under an order issued under 
        this subtitle.
            (B) Election by cooperative.--A farmer cooperative may 
        elect to voluntarily waive the application of subparagraph (A) 
        to the cooperative.
    (f) Assessment of Imports.--An order issued under this subtitle may 
contain authority for the board established under the order to assess 
under section 517 an imported agricultural commodity, or products of 
such an agricultural commodity, at a rate comparable to the rate 
determined by the appropriate board for the domestic agricultural 
commodity covered by the order.
    (g) Other Authority.--An order issued under this subtitle may 
contain authority to take any other action that--
        (1) is not inconsistent with the purpose of this subtitle, any 
    term or condition specified in section 515, or any rule issued to 
    carry out this subtitle; and
        (2) is necessary to administer the order.

SEC. 517. ASSESSMENTS.

    (a) Assessments Authorized.--While an order issued under this 
subtitle is in effect with respect to an agricultural commodity, 
assessments shall be--
        (1) paid by first handlers with respect to the agricultural 
    commodity produced and marketed in the United States; and
        (2) paid by importers with respect to the agricultural 
    commodity imported into the United States, if the imported 
    agricultural commodity is covered by the order pursuant to section 
    516(f).
    (b) Collection.--Assessments required under an order shall be 
remitted to the board established under the order at the time and in 
the manner prescribed by the order.
    (c) Limitation on Assessments.--Not more than 1 assessment may be 
levied on a first handler or importer under subsection (a) with respect 
to any agricultural commodity.
    (d) Assessment Rates.--The board shall recommend to the Secretary 1 
or more rates of assessment to be levied under subsection (a). If 
approved by the Secretary, the rates shall take effect. An order may 
provide that an assessment rate may not be increased unless approved by 
a referendum conducted pursuant to section 518.
    (e) Late-Payment and Interest Charges.--
        (1) In general.--Late-payment and interest charges may be 
    levied on each person subject to an order who fails to remit an 
    assessment in accordance with subsection (b).
        (2) Rate.--The rate for the charges shall be specified by the 
    Secretary.
    (f) Investment of Assessments.--Pending disbursement of assessments 
under a budget approved by the Secretary, a board may invest 
assessments collected under this section in--
        (1) obligations of the United States or any agency of the 
    United States;
        (2) general obligations of any State or any political 
    subdivision of a State;
        (3) interest-bearing accounts or certificates of deposit of 
    financial institutions that are members of the Federal Reserve 
    System; or
        (4) obligations fully guaranteed as to principal and interest 
    by the United States.
    (g) Refund of Assessments From Escrow Account.--
        (1) Escrow account.--During the period beginning on the 
    effective date of an order and ending on the date the Secretary 
    announces the results of a referendum that is conducted under 
    section 518(b)(1) with respect to the order, the board established 
    under the order shall--
            (A) establish and maintain an escrow account of the kind 
        described in subsection (f)(3) to be used to refund 
        assessments; and
            (B) deposit funds in the account in accordance with 
        paragraph (2).
        (2) Amount to be deposited.--The board shall deposit in the 
    account an amount equal to 10 percent of the assessments collected 
    during the period referred to in paragraph (1).
        (3) Right to receive refund.--Subject to paragraphs (4), (5), 
    and (6), persons subject to an order shall be eligible to demand a 
    refund of assessments collected during the period referred to in 
    paragraph (1) if--
            (A) the assessments were remitted on behalf of the person; 
        and
            (B) the order is not approved in the referendum.
        (4) Form of demand.--The demand for a refund shall be made at 
    such time and in such form as specified by the order.
        (5) Payment of refund.--A person entitled to a refund shall be 
    paid promptly after the board receives satisfactory proof that the 
    assessment for which the refund is demanded was paid on behalf of 
    the person who makes the demand.
        (6) Proration.--If the funds in the escrow account required by 
    paragraph (1) are insufficient to pay the amount of all refunds 
    that persons subject to an order otherwise would have a right to 
    receive under this subsection, the board shall prorate the amount 
    of the funds among all the persons.
        (7) Closing of escrow account.--If the order is approved in a 
    referendum conducted under section 518(b)(1)--
            (A) the escrow account shall be closed; and
            (B) the funds shall be available to the board for 
        disbursement as authorized in the order.

SEC. 518. REFERENDA.

    (a) Initial Referendum.--
        (1) Optional referendum.--For the purpose of ascertaining 
    whether the persons to be covered by an order favor the order going 
    into effect, the order may provide for the Secretary to conduct an 
    initial referendum among persons to be subject to an assessment 
    under section 517 who, during a representative period determined by 
    the Secretary, engaged in--
            (A) the production or handling of the agricultural 
        commodity covered by the order; or
            (B) the importation of the agricultural commodity.
        (2) Procedure.--The results of the referendum shall be 
    determined in accordance with subsection (e). The Secretary may 
    require that the agricultural commodity industry involved post a 
    bond or other collateral to cover the cost of the referendum.
    (b) Required Referenda.--
        (1) In general.--For the purpose of ascertaining whether the 
    persons covered by an order favor the continuation, suspension, or 
    termination of the order, the Secretary shall conduct a referendum 
    among persons subject to assessments under section 517 who, during 
    a representative period determined by the Secretary, have engaged 
    in--
            (A) the production or handling of the agricultural 
        commodity covered by the order; or
            (B) the importation of the agricultural commodity.
        (2) Time for referendum.--The referendum shall be conducted not 
    later than 3 years after assessments first begin under the order.
        (3) Exception.--This subsection shall not apply if an initial 
    referendum was conducted under subsection (a).
    (c) Subsequent Referenda.--The Secretary shall conduct a subsequent 
referendum--
        (1) not later than 7 years after assessments first begin under 
    the order;
        (2) at the request of the board established under the order; or
        (3) at the request of 10 percent or more of the number of 
    persons eligible to vote under subsection (b)(1);
to determine if the persons favor the continuation, suspension, or 
termination of the order.
    (d) Other Referenda.--The Secretary may conduct a referendum at any 
time to determine whether the continuation, suspension, or termination 
of the order or a provision of the order is favored by persons eligible 
to vote under subsection (b)(1).
    (e) Approval of Order.--An order may provide for its approval in a 
referendum--
        (1) by a majority of those persons voting;
        (2) by persons voting for approval who represent a majority of 
    the volume of the agricultural commodity; or
        (3) by a majority of those persons voting for approval who also 
    represent a majority of the volume of the agricultural commodity.
    (f) Costs of Referenda.--The board established under an order with 
respect to which a referendum is conducted under this section shall 
reimburse the Secretary for any expenses incurred by the Secretary to 
conduct the referendum.
    (g) Manner of Conducting Referenda.--
        (1) In general.--A referendum conducted under this section 
    shall be conducted in the manner determined by the Secretary to be 
    appropriate.
        (2) Advance registration.--If the Secretary determines that an 
    advance registration of eligible voters in a referendum is 
    necessary before the voting period in order to facilitate the 
    conduct of the referendum, the Secretary may institute the advance 
    registration procedures by mail, or in person through the use of 
    national and local offices of the Department.
        (3) Voting.--Eligible voters may vote by mail ballot in the 
    referendum or in person if so prescribed by the Secretary.
        (4) Notice.--Not later than 30 days before a referendum is 
    conducted under this section with respect to an order, the 
    Secretary shall notify the agricultural commodity industry 
    involved, in such manner as determined by the Secretary, of the 
    period during which voting in the referendum will occur. The notice 
    shall explain any registration and voting procedures established 
    under this subsection.

SEC. 519. PETITION AND REVIEW OF ORDERS.

    (a) Petition.--
        (1) In general.--A person subject to an order issued under this 
    subtitle may file with the Secretary a petition--
            (A) stating that the order, any provision of the order, or 
        any obligation imposed in connection with the order, is not 
        established in accordance with law; and
            (B) requesting a modification of the order or an exemption 
        from the order.
        (2) Hearing.--The Secretary shall give the petitioner 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. The ruling shall be final, subject to 
    review as set forth in subsection (b).
        (4) Limitation on petition.--Any petition filed under this 
    subsection challenging an order, any provision of the order, or any 
    obligation imposed in connection with the order, shall be filed 
    within 2 years after the effective date of the order, provision, or 
    obligation subject to challenge in the petition.
    (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 the final 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 the final ruling by the 
    Secretary under subsection (a)(3).
        (2) Process.--Service of process in a proceeding may be made on 
    the Secretary by delivering a copy of the complaint to the 
    Secretary.
        (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 determines to be in 
        accordance with law; or
            (B) to take such further action as, in the opinion of the 
        court, the law requires.
    (c) Effect on Enforcement Proceedings.--The pendency of a petition 
filed under subsection (a) or an action commenced under subsection (b) 
shall not operate as a stay of any action authorized by section 520 to 
be taken to enforce this subtitle, including any rule, order, or 
penalty in effect under this subtitle.

SEC. 520. ENFORCEMENT.

    (a) Jurisdiction.--The district courts of the United States shall 
have jurisdiction specifically to enforce, and to prevent and restrain 
a person from violating, an order or regulation issued 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 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 an 
administrative action under this section.
    (c) Civil Penalties and Orders.--
        (1) Civil penalties.--A person who willfully violates an order 
    or regulation issued by the Secretary under this Act may be 
    assessed by the Secretary a civil penalty of not less than $1,000 
    and not more than $10,000 for each violation.
        (2) Separate offense.--Each violation and each day during which 
    there is a failure to comply with an order or regulation issued by 
    the Secretary shall be considered to be a separate offense.
        (3) Cease-and-desist orders.--In addition to, or in lieu of, a 
    civil penalty, the Secretary may issue an order requiring a person 
    to cease and desist from violating the order or regulation.
        (4) Notice and hearing.--No order assessing a penalty or cease-
    and-desist order may be issued by the Secretary under this 
    subsection unless the Secretary provides notice and an opportunity 
    for a hearing on the record with respect to the violation.
        (5) Finality.--An order assessing a penalty or a cease-and-
    desist order issued under this subsection by the Secretary shall be 
    final and conclusive unless the person against whom the order is 
    issued files an appeal from the order with the United States court 
    of appeals, as provided in subsection (d).
    (d) Review by Court of Appeals.--
        (1) In general.--A person against whom an order is issued under 
    subsection (c) may obtain review of the order by--
            (A) filing, not later than 30 days after the person 
        receives notice of the order, a notice of appeal in--
                (i) the United States court of appeals for the circuit 
            in which the person resides or carries on business; or
                (ii) the United States Court of Appeals for the 
            District of Columbia Circuit; and
            (B) simultaneously sending a copy of the notice of appeal 
        by certified mail to the Secretary.
        (2) Record.--The Secretary shall file with the court 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 on the record.
    (e) Failure To Obey Cease-and-Desist Orders.--A person who fails to 
obey a valid cease-and-desist order issued by the Secretary under this 
section, after an opportunity for a hearing, shall be subject to a 
civil penalty assessed by the Secretary of not less than $1,000 and not 
more than $10,000 for each offense. Each day during which the failure 
continues shall be considered to be a separate violation of the cease-
and-desist order.
    (f) Failure To Pay Penalties.--If a person fails to pay a civil 
penalty imposed under this section by 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 for any 
district in which the person resides or carries on business. In the 
action, the validity and appropriateness of the order imposing the 
civil penalty shall not be subject to review.
    (g) Additional Remedies.--The remedies provided in this section 
shall be in addition to, and not exclusive of, other remedies that may 
be available.

SEC. 521. INVESTIGATIONS AND POWER TO SUBPOENA.

    (a) Investigations.--The Secretary may make such investigations as 
the Secretary considers necessary--
        (1) for the effective administration of this subtitle; or
        (2) to determine whether any person subject to this subtitle 
    has engaged, or is about to engage, in any action that constitutes 
    or will constitute a violation of this subtitle or any order or 
    regulation issued under this subtitle.
    (b) Subpoenas, Oaths, and Affirmations.--For the purpose of any 
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 or 
documents that are relevant to the inquiry. The attendance of witnesses 
and the production of records or documents 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 require the attendance and 
testimony of the person or the production of records or documents. The 
court may issue an order requiring the person to appear before the 
Secretary to produce records or documents or to give testimony 
regarding the matter under investigation.
    (d) Contempt.--Any failure to obey the order of the court may be 
punished by the court as a contempt of the court.
    (e) Process.--Process in any case under this section may be served 
in the judicial district in which the person resides or carries on 
business or wherever the person may be found.

SEC. 522. SUSPENSION OR TERMINATION.

    (a) Mandatory Suspension or Termination.--The Secretary shall 
suspend or terminate an order or a provision of an order if the 
Secretary finds that an order or a provision of an order obstructs or 
does not tend to effectuate the purpose of this subtitle, or if the 
Secretary determines that the order or a provision of an order is not 
favored by persons voting in a referendum conducted under section 518.
    (b) Implementation of Suspension or Termination.--If, as a result 
of a referendum conducted under section 518, the Secretary determines 
that an order is not approved, the Secretary shall--
        (1) not later than 180 days after making the determination, 
    suspend or terminate, as the case may be, collection of assessments 
    under the order; and
        (2) as soon as practicable, suspend or terminate, as the case 
    may be, activities under the order in an orderly manner.

SEC. 523. AMENDMENTS TO ORDERS.

    The provisions of this subtitle applicable to an order shall be 
applicable to any amendment to an order, except that section 518 shall 
not apply to an amendment.

SEC. 524. EFFECT ON OTHER LAWS.

    This subtitle shall not affect or preempt any other Federal or 
State law authorizing promotion or research relating to an agricultural 
commodity.

SEC. 525. REGULATIONS.

    The Secretary may issue such regulations as may be necessary to 
carry out this subtitle and the power vested in the Secretary under 
this subtitle.

SEC. 526. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There are authorized to be appropriated such sums 
as may be necessary to carry out this subtitle.
    (b) Limitation on Expenditures for Administrative Expenses.--Funds 
appropriated to carry out this subtitle may not be expended for the 
payment of expenses incurred by a board to administer an order.

                    Subtitle C--Canola and Rapeseed

SEC. 531. SHORT TITLE.

    This subtitle may be cited as the ``Canola and Rapeseed Research, 
Promotion, and Consumer Information Act''.

SEC. 532. 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--
            (A) canola and rapeseed products are produced by thousands 
        of canola and rapeseed producers and processed by numerous 
        processing entities; and
            (B) 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. 533. DEFINITIONS.

    In this subtitle (unless the context otherwise requires):
        (1) Board.--The term ``Board'' means the National Canola and 
    Rapeseed Board established under section 535(b).
        (2) Canola; rapeseed.--The terms ``canola'' and ``rapeseed'' 
    mean 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 product.--The term ``canola or rapeseed 
    product'' means a product 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 who 
        buys or otherwise acquires 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 a program 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 534.
        (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 a 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 other 
    persons 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) 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.
        (17) Secretary.--The term ``Secretary'' means the Secretary of 
    Agriculture.
        (18)  State.--The term ``State'' means any of the 50 States, 
    the District of Columbia and the Commonwealth of Puerto Rico.
        (19)  United states.--The term ``United States'' means 
    collectively the 50 States, the District of Columbia, and the 
    Commonwealth of Puerto Rico.

SEC. 534. 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 may amend an order issued under this 
section.

SEC. 535. 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 the 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 1 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.--For the purposes of section 536, 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.--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.
            (C) Termination of terms.--Notwithstanding subparagraph 
        (B), each member shall continue to serve until a successor is 
        appointed by the Secretary.
        (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 issue 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 536, 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 536;
        (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 536, 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 536 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 a producer organization for any services 
    required in addition to the services described in paragraph (1). 
    The contract shall include provisions comparable to the provisions 
    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 a number of persons subject to an 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 for law enforcement.--
    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.
        (4) 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 of information.--Nothing in this subtitle 
    authorizes the withholding of information from Congress.
    (i) Use of Assessments.--The order shall provide that the 
assessments collected under section 536 shall be used for payment of 
the expenses in implementing and administering this subtitle, with 
provision for a reasonable reserve, and to cover administrative costs 
incurred by the Secretary in implementing and administering this 
subtitle.
    (j) Other Terms and Conditions.--The order shall contain such other 
terms and conditions, not inconsistent with this subtitle, as are 
determined necessary by the Secretary to effectuate this subtitle.

SEC. 536. 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 State organization certified to 
    represent producers under section 535(b)(6), 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 of Assessments.--
        (1) In general.--Assessments required under subsection (a) 
    shall be remitted to the Board by a first purchaser. The Board 
    shall use State organizations certified to represent producers 
    under section 535(b)(6) to collect the assessments. If an 
    appropriate certified State organization does not exist to collect 
    an assessment, the assessment shall be collected by the Board. 
    There shall be only 1 certified State organization 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 
        537(a), the Board recommends an increase above 10 cents per 
        hundredweight; and
            (B) the increase is approved in a referendum under section 
        537(b).
        (3) Credit.--A producer who demonstrates to the Board that the 
    producer is participating in a program of a State organization 
    certified to represent producers under section 535(b)(6) 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 534(b)(3) and ending on the date on which a referendum is 
    conducted under section 537(a), the Board shall--
            (A) establish and maintain an escrow account to be used for 
        assessment refunds; and
            (B) place funds in the account in accordance with paragraph 
        (2).
        (2) Placement of funds in account.--The Board shall place in 
    the 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 537(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 537(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 537(a), all funds in the escrow 
    account shall be returned to the Board for use by the Board in 
    accordance with this subtitle.

SEC. 537. REFERENDA.

    (a) Initial Referendum.--
        (1) Requirement.--During the period ending 30 months after the 
    date on which an order is first issued under section 534(b)(3), 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 contain 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 the producers voting in the referendum, 
    the Secretary shall terminate collection of assessments under the 
    order within 180 days 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 as determined by the Secretary, 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 
    180 days 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 make a request for 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. 538. 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 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.
        (4) Limitation on petition.--Any petition filed under this 
    subtitle challenging an order, or any obligation imposed in 
    connection with an order, shall be filed not later than 2 years 
    after the effective date of the order or imposition of the 
    obligation.
    (b) Review.--
        (1) Commencement of action.--The district court of the United 
    States for 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 539.

SEC. 539. 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 committing the violation or by 
administrative action under subsection (c).
    (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 cease-and-desist 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 in 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 cease-and-
    desist order by--
            (A) filing, within the 30-day period beginning on the date 
        the penalty is assessed or cease-and-desist order issued, a 
        notice of appeal in--
                (i) the district court of the United States for the 
            district in which the person resides or carries on 
            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 determined that the person 
    committed the 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 Cease-and-Desist Orders.--Any person who fails 
to obey a cease-and-desist order issued under this section after the 
cease-and-desist 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 
cease-and-desist 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 of the United 
States for any district in which the person resides or carries on 
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. 540. 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 538 or 539, 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 carries on business or wherever 
the person may be found.
    (f) Hearing Site.--The site of a hearing held under section 538 or 
539 shall be in the judicial district where the person affected by the 
hearing resides or has a principal place of business.

SEC. 541. SUSPENSION OR TERMINATION.

    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, suspend or terminate the operation of 
the order or provision. The suspension or termination of an order shall 
not be considered an order within the meaning of this subtitle.

SEC. 542. REGULATIONS.

    The Secretary may issue such regulations as are necessary to carry 
out this subtitle.

SEC. 543. 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 D--Kiwifruit

SEC. 551. SHORT TITLE.

    This subtitle may be cited as the ``National Kiwifruit Research, 
Promotion, and Consumer Information Act''.

SEC. 552. 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. 553. DEFINITIONS.

    In this subtitle (unless the context otherwise requires):
        (1) Board.--The term ``Board'' means the National Kiwifruit 
    Board established under section 555.
        (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 in or imported into 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 554.
        (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 purpose 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 of 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. 554. ISSUANCE OF ORDERS.

    (a) Issuance.--To effectuate the purposes of this subtitle 
specified in section 552(b), 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. 555. NATIONAL KIWIFRUIT BOARD.

    (a) Membership.--An order issued by the Secretary under section 554 
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 
    556(b).
        (2) 4 members who are importers (or representatives of 
    importers) and who are not exempt from an assessment under section 
    556(b) or are exporters (or representatives of exporters).
        (3) 1 member appointed from the general public.
    (b) Adjustment of Membership.--
        (1) In general.--Subject to the 11-member limit and to 
    paragraph (2), the Secretary may adjust membership on the Board to 
    accommodate changes in production and import levels of kiwifruit.
        (2) Number of producer members.--Producers shall comprise not 
    less than 51 percent of the membership of the Board.
    (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 and alternates 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 member 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 
    554, 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 organizations involved in promoting kiwifruit that 
    are chartered by a State, the District of Columbia, or the 
    Commonwealth of Puerto Rico.

SEC. 556. REQUIRED TERMS IN ORDER.

    (a) Budgets and Plans.--
        (1) In general.--An order issued under section 554 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 and carrying out of 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 rate 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 an equivalent rate.
        (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 557(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, employees, and agents of the Department of Agriculture 
    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) the 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 
        554(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 of Agriculture, shall be removed from 
    office.
    (h) Withholding of Information.--Nothing in this subtitle 
authorizes the withholding of information from Congress.

SEC. 557. 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 554 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 556(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 556(b) and funds from other sources for the 
development and expansion of sales in foreign markets of kiwifruit 
produced in the United States.

SEC. 558. 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 issue 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 
    connection with an order, shall be filed not later than 2 years 
    after the effective date of the order or imposition of the 
    obligation.
    (b) Review.--
        (1) Commencement of action.--The district court of the United 
    States for 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 559.

SEC. 559. 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 the 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 
    of the order in 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 cease-and-desist order in the district court of the United 
    States for the district in which the person resides or carries on 
    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 on which the penalty is assessed or 
        cease-and-desist order issued; 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 committed the 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 Cease-and-Desist Orders.--Any person who fails 
to obey a cease-and-desist order issued by the Secretary after the 
cease-and-desist 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 cease-and-
desist 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 for any district in which the person resides 
or carries on business. In an action for recovery, the validity and 
appropriateness of the final order imposing the civil penalty shall not 
be subject to review.

SEC. 560. 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 558 or 559, 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 court.
    (e) Process.--Process in any such case may be served in the 
judicial district in which the person resides or carries on business or 
wherever the person may be found.
    (f) Hearing Site.--The site of any hearing held under section 558 
or 559 shall be in the judicial district where the person affected by 
the hearing resides or has a principal place of business.

SEC. 561. REFERENDA.

    (a) Initial Referendum.--
        (1) Referendum required.--During the 60-day period immediately 
    preceding the proposed effective date of an order issued under 
    section 554, 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 554, 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 favoring approval 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 554 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. 562. SUSPENSION OR TERMINATION.

    (a) In General.--If the Secretary finds that an order issued under 
section 554, or a provision of the order, obstructs or does not tend to 
effectuate the purposes of this subtitle, the Secretary shall suspend 
or terminate the operation of the order or provision.
    (b) Limitation.--The suspension or termination of any order, or any 
provision of an order, shall not be considered an order under this 
subtitle.

SEC. 563. REGULATIONS.

    The Secretary may issue such regulations as are necessary to carry 
out this subtitle.

SEC. 564. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated for each fiscal year such 
sums as are necessary to carry out this subtitle.

                          Subtitle E--Popcorn

SEC. 571. SHORT TITLE.

    This subtitle may be cited as the ``Popcorn Promotion, Research, 
and Consumer Information Act''.

SEC. 572. 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. 573. DEFINITIONS.

    In this subtitle (unless the context otherwise requires):
        (1) Board.--The term ``Board'' means the Popcorn Board 
    established under section 575(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 or a program 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 574.
        (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. 574. ISSUANCE OF ORDERS.

    (a) In General.--To effectuate the policy described in section 
572(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. 575. 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 issue 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 services 
    required in addition to the services described in paragraph (1). 
    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 a number of persons subject to an 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 other 
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. 576. REFERENDA.

    (a) Initial Referendum.--
        (1) In general.--Within the 60-day period immediately preceding 
    the effective date of an order, as provided in section 574(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 574(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 suspension or termination 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 575(i)(3)(C)(ii).

SEC. 577. 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 578.

SEC. 578. 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. 579. 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 
    carries on business or wherever the person may be found.

SEC. 580. 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. 581. REGULATIONS.

    The Secretary may issue such regulations as are necessary to carry 
out this subtitle.

SEC. 582. 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 F--Miscellaneous

SEC. 591. MAINTENANCE OF RECORDS FOR HONEY PROMOTION PROGRAM.

    Section 9(f) of the Honey Research, Promotion, and Consumer 
Information Act (7 U.S.C. 4608(f)) is amended by inserting 
``producers,'' after ``importers,''.

                            TITLE VI--CREDIT
                    Subtitle A--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 
    make a direct loan under this subtitle only 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), 
        the Secretary may make a direct loan under this subtitle 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 a loan to the farmer or rancher under 
        subparagraph (A) 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 a loan to the farmer or rancher under 
        subparagraph (A) after the date that is 5 years after the date 
        of enactment of this paragraph.''.

SEC. 602. PURPOSES OF LOANS.

    (a) In General.--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 described in section 304 on a 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 described in section 304 on a farm 
        or ranch; or
            ``(E) refinancing indebtedness.
    ``(b) Preferences.--In making or guaranteeing a loan under this 
subtitle for purchase of a farm or ranch, the Secretary shall give 
preference to a person who--
        ``(1) has a dependent family;
        ``(2) to the extent practicable, is able to make an initial 
    down payment on the farm or ranch; 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.--After the Secretary makes the determination 
    required by paragraph (2), 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).''.
    (b) Transitional Provision.--Section 303(c)(1) of the Consolidated 
Farm and Rural Development Act shall not apply until the Secretary of 
Agriculture makes the determination required by section 303(c)(2) of 
the Act.

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 at least 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 
    paragraphs (5) and (6), 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 not more than 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 
        outstanding under this subtitle for acquiring a farm or 
        ranch.''.

                      Subtitle B--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 
    make a direct loan under this subtitle only 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 received a previous direct operating loan 
        made under this subtitle; or
            ``(C) has received a previous direct operating loan made 
        under this subtitle during 6 or fewer 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.

    (a) In General.--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 farm or ranch 
    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 changing 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 in complying 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 farm or ranch 
    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 changing 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.--After the Secretary makes the determination 
    required by paragraph (2), 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 the 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 by paragraph (1).
    ``(d) Private Reserve.--
        ``(1) In general.--Notwithstanding any other provision of this 
    title, the Secretary may reserve a portion of any loan made under 
    this subtitle to be placed in an unsupervised bank account that may 
    be used at the discretion of the borrower for the basic family 
    needs of the borrower and the immediate family of the borrower.
        ``(2) Limit on size of the reserve.--The size of the reserve 
    shall not exceed the least of--
            ``(A) 10 percent of the loan;
            ``(B) $5,000; or
            ``(C) the amount needed to provide for the basic family 
        needs of the borrower and the borrower's immediate family for 3 
        calendar months.''.
    (b) Transitional Provision.--Section 312(c)(1) of the Consolidated 
Farm and Rural Development Act shall not apply until the Secretary of 
Agriculture makes the determination required by section 312(c)(2) of 
the Act.

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 under this subtitle, each year during 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.
        ``(4) Termination of delinquent loans.--If a borrower does not 
    pay an installment on a line-of-credit loan on schedule, the 
    borrower may not take an advance or draw on the line-of-credit, 
    unless the Secretary determines that--
            ``(A) the borrower's failure to pay on schedule was due to 
        unusual conditions that the borrower could not control; and
            ``(B) the borrower will reduce the line-of-credit balance 
        to the scheduled level at the end of--
                ``(i) the production cycle; or
                ``(ii) the marketing of the borrower's agricultural 
            products.
        ``(5) Agricultural commodities.--A line-of-credit loan may be 
    used to finance the production or marketing of an agricultural 
    commodity that--
            ``(A) is eligible for a price support program of the 
        Department of Agriculture; or
            ``(B) was eligible for a price support program of the 
        Department of Agriculture on the day before the date of 
        enactment of the Federal Agriculture Improvement and Reform Act 
        of 1996.''.

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.''.

                      Subtitle C--Emergency Loans

SEC. 621. HAZARD INSURANCE REQUIREMENT.

    (a) In General.--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.--After the Secretary makes the determination 
    required by paragraph (2), 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).''.
    (b) Transitional Provision.--Section 321(b)(1) of the Consolidated 
Farm and Rural Development Act shall not apply until the Secretary of 
Agriculture makes the determination required by section 321(b)(2) of 
the Act.

SEC. 622. NARROWING OF AUTHORITY TO WAIVE APPLICATION OF THE CREDIT 
              ELSEWHERE TEST.

    The second proviso of section 322(b) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1962(b)) is amended by striking 
``$300,000 or less'' and inserting ``$100,000 or less''.

SEC. 623. LINKING OF EMERGENCY LOANS FOR CROP OR LIVESTOCK CHANGES TO 
              NATURAL DISASTERS.

    Section 323 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1963) is amended by inserting ``that are necessitated by a 
natural disaster, major disaster, or emergency and that are'' after 
``livestock changes''.

SEC. 624. 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 to a borrower who has suffered a loss in an amount 
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. 625. ESTABLISHMENT OF DATE FOR EMERGENCY LOAN ASSET VALUATION.

    The last sentence of section 324(d) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1964(d)) is amended by striking ``value 
the assets'' and all that follows through the period and inserting 
``establish the value of the assets as of the day before the occurrence 
of the natural disaster, major disaster, or emergency that is the basis 
for a request for assistance under this subtitle or the Robert T. 
Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 
et seq.).''.

SEC. 626. INSURANCE OF EMERGENCY LOANS.

    Section 328 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1968) is repealed.

                 Subtitle D--Administrative Provisions

SEC. 631. TEMPORARY AUTHORITY TO ENTER INTO CONTRACTS.

    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) Temporary Authority To Enter Into Contracts.--
        ``(1) Definitions.--In this subsection:
            ``(A) Eligible financial institution.--The term `eligible 
        financial institution' means a financial institution with 
        substantial experience in farm, ranch, or aquaculture lending 
        that is regulated by the Comptroller of the Currency, the Farm 
        Credit Administration, or a similar regulatory body.
            ``(B) Pilot project.--The term `pilot project' includes 
        services related to borrower loan documentation, financial 
        information, credit history, and appraisals of real estate and 
        chattel.
        ``(2) Authority.--The Secretary may enter into a contract with 
    an eligible financial institution for servicing a farmer program 
    loan under this title, including 1 or more pilot projects.
        ``(3) Report.--Not later than September 30, 1997, and September 
    30 of each year thereafter, the Secretary shall report to Congress 
    on--
            ``(A) the Secretary's experience in using contracts under 
        paragraph (2); and
            ``(B) recommendations for legislation related to this 
        subsection, if any.
        ``(4) Savings clause.--Nothing in this subsection shall limit 
    the authority of the Secretary or an eligible financial institution 
    to contract for any services under this Act or any other law.
        ``(5) Sunset provision.--This subsection shall be effective 
    until September 30, 2002.''.

SEC. 632. USE OF COLLECTION AGENCIES.

    Section 331 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1981) (as amended by section 631) is amended by adding at the 
end the following:
    ``(e) Private Collection Agency.--The Secretary may use a private 
collection agency to collect a claim or obligation described in 
subsection (b)(5).''.

SEC. 633. 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. 634. CLARIFICATION OF WRITTEN STATEMENT REQUIRED OF BORROWERS.

    Section 333(1)(B) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1983(1)(B)) is amended by striking ``a written statement 
showing the applicant's net worth'' and inserting ``an appropriate 
written financial statement''.

SEC. 635. ANNUAL REVIEW OF THE CREDIT HISTORY, BUSINESS OPERATION, AND 
              CONTINUED ELIGIBILITY OF A BORROWER.

    (a) In General.--Section 333 of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1983) is amended--
        (1) by redesignating paragraphs (2), (3), and (4) as paragraphs 
    (3), (4), and (5), respectively; and
        (2) by inserting after paragraph (1) the following:
        ``(2) except with respect to a loan under section 306, 310B, or 
    314, the county or area committee established under section 
    8(b)(5)(B) of the Soil Conservation and Domestic Allotment Act (16 
    U.S.C. 590h(b)(5)(B)) to certify in writing--
            ``(A) that an annual review of the credit history and 
        business operation of the borrower has been conducted; and
            ``(B) that a review of the continued eligibility of the 
        borrower for the loan has been conducted;''.
    (b) Conforming Amendment.--The third sentence of section 310B(a) of 
the Consolidated Farm and Rural Development Act (7 U.S.C. 1932(a)) is 
amended by striking ``(3) of'' and inserting ``(4) of''.

SEC. 636. EXTENSION OF VETERANS PREFERENCE.

    Section 333 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1983) (as amended by section 635(a)) is amended by striking 
paragraph (5) and inserting the following:
        ``(5) the application of a person who is a veteran of any war, 
    as defined in section 101(12) of title 38, United States Code, for 
    a loan under subtitle A or B to be given preference over a similar 
    application from a person who is not a veteran of any war, if the 
    applications are on file in a county or area office at the same 
    time.''.

SEC. 637. VERIFICATION OF THE CREDIT ELSEWHERE TEST.

    Section 333A(f)(4) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1983a(f)(4)) is amended--
        (1) by striking ``(4) With'' and all that follows through 
    ``seasoned'' and inserting the following:
        ``(4) Verification.--
            ``(A) In general.--The Secretary shall provide a prospectus 
        of a seasoned''; and
        (2) by striking ``If the Secretary'' and inserting the 
    following:
            ``(B) Notification.--The Secretary shall notify each 
        borrower of a loan that a prospectus has been provided to a 
        lender under subparagraph (A).
            ``(C) Credit extended.--If the Secretary''.

SEC. 638. 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 using 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 offer 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) 
        not later than 75 days after acquiring the real property, the 
        Secretary shall, not later than 30 days after the 75-day 
        period, 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, not later than 60 days after the lease 
        expires, the Secretary shall offer to sell the property in 
        accordance with paragraph (1).
            ``(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, not later than 
        60 days after the date of enactment of this subparagraph, the 
        Secretary shall offer to sell the property in accordance with 
        paragraph (1).
        ``(3) Interest.--
            ``(A) In general.--Subject to subparagraph (B), any 
        conveyance of real property under this subsection shall include 
        all of the interest of the United States in the property, 
        including mineral rights.
            ``(B) Conservation.--The Secretary may for conservation 
        purposes grant or sell an easement, restriction, development 
        right, or similar legal right to real property to a State, a 
        political subdivision of a State, or a private nonprofit 
        organization separately from the underlying fee or other rights 
        to the property owned by the United States.
        ``(4) Other law.--The Federal Property and Administrative 
    Services Act of 1949 (40 U.S.C. 471 et seq.) shall not apply to any 
    exercise of authority under this title.
        ``(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.--The Secretary may 
            lease or contract to sell to a beginning farmer or rancher 
            a farm or ranch acquired by the Secretary under this title 
            if the beginning farmer or rancher qualifies for a credit 
            sale or direct farm ownership loan under subtitle A but 
            credit sale authority for loans or direct farm ownership 
            loan funds, respectively, are not available.
                ``(ii) Term.--The term of 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 becomes 
                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) Expedited determination.--
            ``(A) In general.--On the request of an applicant, not 
        later than 30 days after denial of the applicant's application, 
        the appropriate State director shall provide an expedited 
        review and determination of whether the applicant is a 
        beginning farmer or rancher for the purpose of acquiring farm 
        inventory property.
            ``(B) Appeal.--The determination of a State Director under 
        subparagraph (A) shall be final and not administratively 
        appealable.
            ``(C) Effects of determinations.--
                ``(i) In general.--The Secretary shall maintain 
            statistical data on the number and results of 
            determinations made under subparagraph (A) and the effect 
            of the determinations 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 the review 
            process under subparagraph (A) is adversely affecting the 
            selling of farm inventory property to beginning farmers or 
            ranchers or the 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 an Indian 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, if the Secretary of the Interior 
                    agrees to an 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, if the tribe agrees to the 
                    assignment.

                    ``(II) Notice to tribe.--If an Indian 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 paragraphs (5), (6), and (9); and
            (E) by redesignating paragraphs (4), (7), (8), and (10) as 
        paragraphs (3), (4), (5), and (6), respectively.

SEC. 639. EASEMENTS ON INVENTORIED PROPERTY.

    Section 335(g) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1985(g)) is amended--
        (1) in paragraph (1)--
            (A) by striking ``(g)(1) Subject to paragraphs (2) through 
        (5)'' and inserting the following:
    ``(g) Easements on Inventoried Property.--
        ``(1) In general.--Subject to paragraph (2)''; and
            (B) by striking ``, as determined'' and all that follows 
        through ``3801 et seq.)'';
        (2) by striking paragraph (2) and inserting the following:
        ``(2) Limitation.--The Secretary shall not establish a wetland 
    conservation easement on an inventoried property that--
            ``(A) was cropland on the date the property entered the 
        inventory of the Secretary; or
            ``(B) was used for farming at any time during the period 
        beginning on the date 5 years before the property entered the 
        inventory of the Secretary and ending on the date the property 
        entered the inventory of the Secretary.'';
        (3) by striking paragraphs (3), (4), (5), and (8);
        (4) by striking ``(6) The Secretary'' and inserting the 
    following:
        ``(3) Notification.--The Secretary''; and
        (5) by striking ``(7) The appraised'' and inserting the 
    following:
        ``(4) Appraised value.--The appraised''.

SEC. 640. 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 the applicant is participating in a program under 
        section 310E--''; and
            (B) in subparagraph (F)--
                (i) by striking ``15 percent'' and inserting ``25 
            percent''; and
                (ii) by inserting before the semicolon at the end the 
            following: ``, except that this subparagraph shall not 
            apply to a loan made or guaranteed under subtitle B''; and
        (2) by adding at the end the following:
        ``(12) Debt forgiveness.--
            ``(A) In general.--Except as provided in subparagraph (B), 
        the term `debt forgiveness' means reducing or terminating a 
        farmer program 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. 641. 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
        (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 
    provided for in 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 guarantees of farm 
                ownership loans under subtitle A; and
                    ``(II) $1,900,000,000 shall be for guarantees of 
                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 guarantees of farm 
                ownership loans under subtitle A; and
                    ``(II) $1,950,000,000 shall be for guarantees of 
                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 guarantees of farm 
                ownership loans under subtitle A; and
                    ``(II) $2,000,000,000 shall be for guarantees of 
                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 guarantees of farm 
                ownership loans under subtitle A; and
                    ``(II) $2,050,000,000 shall be for guarantees of 
                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 guarantees of farm 
                ownership loans under subtitle A; and
                    ``(II) $2,100,000,000 shall be for guarantees of 
                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 guarantees of farm 
                ownership loans under subtitle A; and
                    ``(II) $2,100,000,000 shall be for guarantees of 
                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 guarantees of farm 
                ownership loans under subtitle A; and
                    ``(II) $2,100,000,000 shall be for guarantees of 
                operating loans under subtitle B.

        ``(2) Beginning farmers and ranchers.--
            ``(A) Direct loans.--
                ``(i) Farm ownership loans.--

                    ``(I) In general.--Of the amounts made available 
                under paragraph (1) for direct farm ownership loans, 
                the Secretary shall reserve 70 percent for qualified 
                beginning farmers and ranchers.
                    ``(II) Down payment loans.--Of the amounts reserved 
                for a fiscal year under subclause (I), the Secretary 
                shall reserve 60 percent for the down payment loan 
                program under section 310E until April 1 of the fiscal 
                year.

                ``(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 each of fiscal years 1996 through 1998, 
                25 percent;
                    ``(II) for fiscal year 1999, 30 percent; and
                    ``(III) for each of fiscal years 2000 through 2002, 
                35 percent.

                ``(iii) Funds reserved until september 1.--Except as 
            provided in clause (i)(II), funds reserved for qualified 
            beginning farmers or ranchers under this subparagraph for a 
            fiscal year shall be reserved only until September 1 of the 
            fiscal year.
            ``(B) Guaranteed loans.--
                ``(i) Farm ownership loans.--Of the amounts made 
            available under paragraph (1) for guarantees of 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 guarantees of operating loans, the 
            Secretary shall reserve 40 percent for qualified beginning 
            farmers and ranchers.
                ``(iii) Funds reserved until april 1.--Funds reserved 
            for qualified beginning farmers or ranchers under this 
            subparagraph for a fiscal year shall be reserved only until 
            April 1 of the 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 provide direct farm ownership loans 
            approved by the Secretary to qualified beginning farmers 
            and ranchers under the down payment loan program 
            established under section 310E, if sufficient direct farm 
            ownership loan funds are not otherwise available; and
                ``(ii) beginning on September 1 of each fiscal year, 
            the Secretary shall use available unsubsidized guaranteed 
            farm operating loan funds to provide direct farm ownership 
            loans approved by the Secretary to qualified beginning 
            farmers and ranchers, if sufficient direct farm ownership 
            loan funds are not otherwise available.
            ``(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, 
        by the Secretary during the fiscal year will be made to the 
        extent of available 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 funds made 
        available under subtitle C 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) shall not apply to any funds 
        made available to the Secretary for any fiscal year under an 
        Act making supplemental appropriations.
            ``(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, by the 
        Secretary during the fiscal year will be made to the extent of 
        available amounts.''.

SEC. 642. CONTRACTS ON LOAN SECURITY PROPERTIES.

    Section 349 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1997) is amended--
        (1) by striking subsection (b) and inserting the following:
    ``(b) Contracts on Loan Security Properties.--Subject to subsection 
(c), the Secretary may enter into a contract related to real property 
for conservation, recreation, or wildlife purposes.'';
        (2) in subsection (c)--
            (A) by striking ``(c) Such easement'' and all that follows 
        through ``if--'' and inserting the following:
    ``(c) Limitations.--The Secretary may enter into a contract under 
subsection (b) if--'';
            (B) in paragraph (2), by adding ``and'' at the end;
            (C) in paragraph (3)--
                (i) by striking subparagraph (B);
                (ii) by striking ``(3)(A)(i)'' and inserting 
            ``(3)(A)'';
                (iii) by striking ``Farmers Home Administration'' and 
            inserting ``Secretary'';
                (iv) by striking ``(ii) such easement'' and inserting 
            ``(B) such contract''; and
                (v) by striking ``; or'' and inserting a period; and
            (D) by striking paragraph (4);
        (3) in subsection (d), by striking ``easement'' each place it 
    appears and inserting ``contract'';
        (4) in subsection (e)--
            (A) in paragraph (1)--
                (i) in the matter preceding subparagraph (A), by 
            striking ``purchase any such easement from the borrower--'' 
            and inserting ``reduce or forgive the outstanding debt of a 
            borrower--'';
                (ii) by striking ``easement'' each place it appears and 
            inserting ``contract''; and
                (iii) by striking ``Farmers Home Administration'' each 
            place it appears and inserting ``Secretary''; and
            (B) in paragraph (2)(A), by striking ``easement is 
        acquired'' and inserting ``contract is entered into'';
        (5) in subsection (f)--
            (A) in paragraph (1), by striking ``acquire easements'' and 
        inserting ``enter into contracts''; and
            (B) in paragraphs (2) and (3), by striking ``easements'' 
        each place it appears and inserting ``contracts''; and
        (6) in subsection (g), by striking ``an easement acquired'' and 
    inserting ``a contract entered into''.

SEC. 643. 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 Amendment.--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''.

SEC. 644. 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)--
            (A) in the first sentence, 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 date of enactment of the Federal Agriculture Improvement 
        and Reform Act of 1996, not later than 5 days after the date of 
        enactment of the Act),''; and
            (B) by striking the second sentence.

SEC. 645. 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.--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.''; 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. 646. TRANSFER OF INVENTORY LAND FOR CONSERVATION PURPOSES.

    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 in property 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 of 
    the State and county where the property is located are consulted 
    prior to the transfer.''.

SEC. 647. 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, 115 
S. Ct. 2097 (1995).''.

SEC. 648. DELINQUENT BORROWERS.

    (a) Payment of Interest as a Condition of Loan Servicing for 
Borrowers.--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.''.
    (b) Loan and Loan Servicing Limitations.--The Consolidated Farm and 
Rural Development Act (7 U.S.C. 1921 et seq.) (as amended by subsection 
(a)) is amended by adding at the end the following:

``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 on a loan made or guaranteed 
    under this title.
        ``(2) Exception.--The Secretary may make a direct or guaranteed 
    farm operating loan for paying annual farm or ranch operating 
    expenses of a borrower who was restructured with a write-down under 
    section 353.
    ``(c) No More Than 1 Debt Forgiveness For A Borrower On A Direct 
Loan.--The Secretary may not provide to a borrower debt forgiveness on 
a direct loan made under this title if the borrower has received debt 
forgiveness on another direct loan made under this title.''.

SEC. 649. SHORT FORM CERTIFICATION OF FARM PROGRAM BORROWER COMPLIANCE.

    The Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et 
seq.) (as amended by section 648) is amended by adding at the end the 
following:

``SEC. 374. SHORT FORM CERTIFICATION OF FARM PROGRAM BORROWER 
              COMPLIANCE.

    ``The Secretary shall develop and utilize a consolidated short form 
for farm program borrowers to use in certifying compliance with any 
applicable provision of law (including a regulation) that serves as an 
eligibility prerequisite for a loan made under this title.''.

SEC. 650. CREDIT STUDY.

    (a) In General.--The Secretary of Agriculture shall conduct a study 
and report to the Committee on Agriculture of the House of 
Representatives and the Committee on Agriculture, Nutrition, and 
Forestry of the Senate on the demand for and availability of credit in 
rural areas for agriculture, housing, and rural development.
    (b) Purpose.--The purpose of the study shall be to ensure that 
Congress has current and comprehensive information to consider as 
Congress deliberates on rural credit needs and the availability of 
credit to satisfy the needs of rural areas of the United States.
    (c) Items in Study.--In conducting the study, the Secretary shall 
base the study on the most current available data and analyze--
        (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 provides loans to satisfy 
    the demand;
        (2) rural demand for credit from the United States banking 
    system, the ability of banks to meet the demand, and the extent to 
    which banks provide 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 provides 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 provide loans to satisfy the demand;
        (5) what measure or measures exist to gauge the overall demand 
    for rural credit, the extent to which rural demand for credit is 
    satisfied, and what the measures have demonstrated;
        (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 banks of the United States 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 United States 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 banks of the United States in 
        providing credit to rural users;
        (8) the nature and extent of the unsatisfied rural credit need 
    that the Farm Credit System proposals 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 United States 
    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 banks of the United States 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 system in existence on the date of 
    enactment of this Act, 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.

                     Subtitle E--General Provisions

SEC. 661. 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), (iv), 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), (v), and (vi) as 
        clauses (i), (ii), and (iii), 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 the first sentence of 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(a)''.
    (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 645(3)) is amended by striking ``and 
subparagraphs (A)(i) and (C)(i) of section 335(e)(1),''.

SEC. 662. ELECTRONIC FILING OF EFFECTIVE FINANCING STATEMENTS UNDER THE 
              CLEAR TITLE PROVISIONS OF THE FOOD SECURITY ACT OF 1985.

    Section 1324(c)(4) of the Food Security Act of 1985 (7 U.S.C. 
1631(c)(4)) is amended--
        (1) in subparagraph (A), by striking ``thereof'' and inserting 
    ``of the statement, or, in the case of a State which (under the 
    applicable State law provisions of the Uniform Commercial Code) 
    allows the electronic filing of financing statements without the 
    signature of the debtor, is an electronically reproduced copy of 
    the statement''; and
        (2) in each of subparagraphs (B) and (C), by inserting ``other 
    than in the case of an electronically reproduced copy of the 
    statement,'' before ``is''.

SEC. 663. EFFECTIVE DATE.

    (a) In General.--Except as provided in subsection (b), the 
amendments made by this title shall become effective on the date of 
enactment of this Act.
    (b) Delayed Effective Dates.--The amendments made by sections 601, 
606, 611, 612, 622, 623, 625, 633, 640(1), 642, 645(1), 648(a), and 649 
shall become effective 90 days after the date of enactment of this Act.
    (c) Transition Provision.--The amendments made by sections 638 and 
644 shall not apply with respect to a complete application to acquire 
inventory property submitted prior to the date of enactment of this 
Act.
    (d) Regulations.--Notwithstanding any other provision of law, 
regulations to implement the amendments made by this title shall be 
published as interim final rules with request for comments and may be 
made effective immediately on publication.

                      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.

    Subtitle B of title XXIII of the Food, Agriculture, Conservation, 
and Trade Act of 1990 (7 U.S.C. 2007 et seq.) is repealed.

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 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 may provide financial 
assistance for the purpose of financing the construction of facilities 
and systems to provide telemedicine services and distance learning 
services 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 the portion 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; and
            ``(B) entities providing or proposing to provide 
        telemedicine service or distance learning service to other 
        persons at rates calculated to ensure that the benefit of the 
        financial assistance is passed through to the other persons.
        ``(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 referred to in subsection (a); 
            or
                ``(iii) use the funds provided to install, improve, or 
            extend a facility referred to in subsection (a).
            ``(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 or making the system or facility available.
        ``(3) Appeal.--If the Secretary rejects the application of a 
    borrower who applies for a cost of money loan or grant under this 
    section, the borrower may appeal the decision to the Secretary not 
    later than 10 days after the borrower is notified of the rejection.
        ``(4) 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 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 
    any telecommunications provider serving the affected rural area;
        ``(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 greatest 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 of the maximum amount in the Federal 
Register not more than 45 days after funds are made available for the 
fiscal year to carry out this chapter.
    ``(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, or other 
    facilities that would further telemedicine services or distance 
    learning services;
        ``(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 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 notify the 
    applicant in writing of the decision of the Secretary regarding the 
    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 if the Secretary determines 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 through telecommunications in rural areas served by a 
telecommunications provider.
    ``(e) Coordination With Other Agencies.--The Secretary shall 
coordinate, 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 date of enactment of the 
Federal Agriculture Improvement and Reform 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. DEMONSTRATION PROJECTS.

    Section 2348 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 2662a) is repealed.

SEC. 707. 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. 708. 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. 709. 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. 710. CENSUS OF AGRICULTURE.

    Section 2392 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (Public Law 101-624; 104 Stat. 4057) is repealed.

SEC. 711. STUDY OF THE TRANSPORTATION OF FERTILIZER AND AGRICULTURAL 
              CHEMICALS TO FARMERS.

    Section 2517 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (Public Law 101-624; 104 Stat. 4077) 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(e).''.

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 the 
    results of research into nonfood, nonfeed products and the 
    commercialization of the research.
    ``(c) Place of Incorporation.--The Corporation shall be 
incorporated 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 in accordance with 
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 
    by 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 or 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 transferred to the 
    applicable appropriation account 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 
may--
        ``(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 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:
            ``(Q) 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 11 members as follows:
        ``(1) The Under Secretary of Agriculture for Rural Development.
        ``(2) The Under Secretary of Agriculture for Research, 
    Education, and Economics.
        ``(3) 5 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;
            ``(C) at least 1 member shall be a person who is privately 
        engaged in the commercialization of new nonfood, nonfeed 
        products from agricultural commodities; and
            ``(D) at least 1 member shall have expertise in financial 
        management.
    A different member shall be appointed pursuant to each subparagraph 
    of this paragraph.
        ``(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 not later than 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 not later than 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) 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 Corporate 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 Corporate Board, 
        with respect to the decision.
            ``(B) Reasons.--In the case of any violation and referral 
        of a funding decision to the Corporate Board, the Secretary 
        shall inform the Corporate 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) Appointment.--The Corporate Board shall appoint an 
    Executive Director, subject to the approval of the Secretary.
        ``(2) Duties.--The Executive Director shall be the chief 
    executive officer of the Corporation, with such power and authority 
    as may be conferred by the Corporate Board.
        ``(3) 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 may remove a member of the Corporate 
    Board only for cause.
        ``(2) Transition measure.--The Secretary may appoint to the 
    Corporate Board an individual who, on the day before the date of 
    enactment of the Federal Agriculture Improvement and Reform Act of 
    1996, was serving on the former Alternative Agricultural Research 
    and Commercialization Board, for a term that does not exceed the 
    term for which the individual was appointed to the former Board.
    ``(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.--Violation of paragraph (1) by a member of 
    the Corporate Board 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 set forth in subchapter B of 
    chapter XVI of title 5, Code of Federal Regulations (or any 
    corresponding or similar regulation or ruling), 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 of 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 5, 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, which 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 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;
            ``(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 Corporate Board may establish, in 
the bylaws of the Corporate Board, that a percentage (which shall not 
exceed 1 percent) of the funds provided under subsection (c) for any 
commercialization project shall be expended 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 in as 
    capital of the Corporation, out of dollar receipts made available 
    through annual appropriations, $75,000,000 for each of fiscal years 
    1996 through 2002. On the payment of an amount 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 former Alternative Agricultural 
    Research and Commercialization Center established under former 
    section 1658 of this Act (as in effect on the day before the date 
    of enactment of the Federal Agriculture Improvement and Reform 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 by section 1658 of the Food, 
Agriculture, Conservation, and Trade Act of 1990 shall--
        (1) develop a 5-year business plan pursuant to section 
    1659(c)(1)(E) of the Act; 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 required by paragraph (1) 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' 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 for a 
    water system unless the Secretary determines that the water system 
    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.--No Federal funds shall be made available under 
    this section for a water treatment discharge or waste disposal 
    system 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 accomplish 
            the activities described in the relevant clauses of 
            subparagraph (A).
            ``(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);
        (5) by redesignating paragraphs (16) through (20) as paragraphs 
    (14) through (18), respectively; and
        (6) in paragraph (14) (as so redesignated)--
            (A) by striking ``(14)(A) The'' and inserting the 
        following:
        ``(14) 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 Amendment.--The second sentence of section 309A(a) 
of the Consolidated Farm and Rural Development Act (7 U.S.C. 1929a(a)) 
(as amended by section 661(c)(1)) 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) in paragraph (1)(A), by striking ``15,000'' and 
        inserting ``10,000''; 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 the first sentence of subsection (a)--
            (A) by striking ``and'' at the end of clause (2); and
            (B) by inserting before the period the following: ``, and 
        (4) to facilitate economic opportunity for industries 
        undergoing adjustment from terminated Federal agricultural 
        price and income support programs or increased competition from 
        foreign trade'';
        (2) in subsection (b), by striking ``(b)(1)'' and all that 
    follows through ``(2) The'' and inserting the following:
    ``(b) Solid Waste Management Grants.--The'';
        (3) 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'';
            (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
            (D) by adding at the end the following:
        ``(3) Grants to aid industries in adjusting to terminated 
    federal agricultural programs or increased foreign competition.--
    The Secretary may make grants under this section to facilitate 
    economic opportunity for industries undergoing adjustment from 
    terminated Federal agricultural price and income support programs 
    or increased competition from foreign trade.'';
        (4) by striking subsection (e) 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 
        businesses, facilitate the establishment of cooperatives and 
        new cooperative approaches, and generate 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 
        areas of the United States 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 areas of the United States; and
            ``(F) commit to providing greater than a 25 percent 
        matching contribution with private funds and in-kind 
        contributions.
        ``(6) 1-year grants; authority to approve grant for 1 
    additional year without application.--The Secretary shall make 
    grants under this subsection for a period of 1 year. The Secretary 
    shall evaluate programs receiving assistance under this subsection. 
    If the Secretary determines it to be in the best interest of the 
    program, the Secretary may award an additional grant to the program 
    for the immediately succeeding year without application for the 
    grant.
        ``(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.'';
        (5) by striking subsections (f), (g), (h), and (i);
        (6) by redesignating subsection (j) as subsection (f); and
        (7) 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 the Secretary determines is a family 
    farmer.
        ``(2) Loan guarantees.--The Secretary may guarantee loans under 
    this section to individual farmers for the purpose of purchasing 
    start-up 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.''.
    (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 661(a)(2)) 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 Service, Rural Business-Cooperative 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 749(a)(1) of the Federal Agriculture 
    Improvement and Reform 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 
    the 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 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)) for which funds are available at any time during the 
fiscal year.''.
        (2) 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. 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 are authorized to be 
appropriated to carry out this section $15,000,000 for each of fiscal 
years 1996 through 2002.''.

SEC. 758. APPLICATION REQUIREMENTS RELATING TO WATER AND WASTE DISPOSAL 
              LOAN AND GRANT PROGRAMS.

    Section 306(a) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 926(a)) is amended by inserting after paragraph (4) the 
following:
        ``(5) Application requirements.--Not earlier than 60 days 
    before a preliminary application is filed for a loan under 
    paragraph (1) or a grant under paragraph (2) for a water or waste 
    disposal purpose, a notice of the intent of the applicant to apply 
    for the loan or grant shall be published in a general circulation 
    newspaper. The selection of engineers for a project design shall be 
    done by a request for proposals by the applicant.''.

SEC. 759. NATIONAL SHEEP INDUSTRY IMPROVEMENT CENTER.

    The Consolidated Farm and Rural Development Act (as amended by 
section 649) 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 sheep or 
    goat industries 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 National Sheep Industry 
    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 production 
    and marketing of sheep or goat products in the United States;
        ``(2) optimize the use of available human capital and resources 
    within the sheep or goat industries;
        ``(3) provide assistance to meet the needs of the sheep or goat 
    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 or goat industry to design unique responses 
    to the special needs of the sheep or goat 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 or goat 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 
    National Sheep Industry 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 grants and intermediate- and long-term 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 principal 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 
        $30,000,000 to carry out this section.
            ``(D) Privatization.--No additional Federal funds shall be 
        used to carry out this section beginning on the earlier of--
                ``(i) the date that is 10 years after the date of 
            enactment of this section; or
                ``(ii) the day after a total of $50,000,000 has been 
            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 or 
            goats in the United States;
                ``(ii) 2 members shall have expertise in finance and 
            management; and
                ``(iii) 1 member shall have expertise in lamb, wool, 
            goat, or goat product marketing; and
            ``(B) 2 nonvoting members, of whom--
                ``(i) 1 member shall be the Under Secretary of 
            Agriculture for Rural Development; and
                ``(ii) 1 member shall be the Under Secretary of 
            Agriculture for Research, Education, and Economics.
        ``(4) Nomination.--
            ``(A) Nominating body.--The Secretary shall appoint the 
        voting members of the Board from nominations submitted by 
        organizations described in subparagraph (B).
            ``(B) National organizations.--A national organization is 
        described in this subparagraph if the organization--
                ``(i) consists primarily of active sheep or goat 
            producers in the United States; and
                ``(ii) has as the primary interest of the organization 
            the production of sheep or goats 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.--Except as provided in subparagraph (D), 
        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, except as provided in 
            subparagraph (E)(iii).
                ``(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.
                ``(iii) Conflicted members not to vote on remanded 
            decisions.--If a decision with respect to a matter is 
            remanded to the Board by reason of a conflict of interest 
            faced by a Board member, the member may not participate in 
            any subsequent decision with respect to the matter.
        ``(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 date 
    of enactment 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) Rescission of sanctions.--The Secretary shall rescind 
    sanctions imposed under paragraph (2) on a finding by the Secretary 
    that there is no longer any failure by the Board or the Center to 
    comply with this section or that the noncompliance will be promptly 
    corrected.''.

SEC. 759A. COOPERATIVE AGREEMENTS.

    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.''.

SEC. 759B. ELIGIBILITY FOR GRANTS TO BROADCASTING SYSTEMS.

    Section 310B(f) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1932(f)) (as redesignated by section 747(a)(6)) is amended by 
striking ``Systems.--The'' and inserting ``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 not less than 80 percent 
    of the rural land area of the State (as determined by the 
    Secretary).
        ``(2) Grants.--The''.

             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.
        ``(3) State director.--The term `State director' means, with 
    respect to a State, the Director of the Rural Economic and 
    Community Development State Office.

``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--
        ``(1) for each State for the delivery of assistance under this 
    subtitle in the State; and
        ``(2) for each federally recognized Indian tribe for the 
    delivery of assistance under this subtitle to the Indian tribe.
    ``(b) Assistance.--
        ``(1) In general.--Financial assistance for rural development 
    provided under this subtitle for a State or a federally recognized 
    Indian tribe shall be used only for orderly community development 
    that is consistent with the strategic plan of the State or Indian 
    tribe.
        ``(2) Rural area.--Assistance under this subtitle may only be 
    provided in a rural area.
        ``(3) Small communities.--In carrying out this subtitle in 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 
each State and federally recognized Indian tribe not later than 60 days 
after receiving the plan, and at least once every 5 years thereafter.
    ``(d) Contents.--A strategic plan of a State or federally 
recognized Indian tribe 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 or federally recognized Indian 
    tribe, as appropriate, 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) in the case of a State, 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 in the State, 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. RURAL DEVELOPMENT TRUST FUND.

    ``(a) Establishment.--There is established in the Treasury of the 
United States a trust fund which shall be known as the Rural 
Development Trust Fund (in this subtitle referred to as the `Trust 
Fund').
    ``(b) Accounts.--There are established in the Trust Fund the 
following accounts:
        ``(1) The rural community facilities account.
        ``(2) The rural utilities account.
        ``(3) The rural business and cooperative development account.
        ``(4) The national reserve account.
        ``(5) The federally recognized Indian tribe account.
    ``(c) Deposits Into Accounts.--Notwithstanding any other provision 
of law, each fiscal year--
        ``(1) all amounts made available to carry out the authorities 
    described in subsection (d)(1) for the fiscal year shall be 
    deposited into the rural community facilities account of the Trust 
    Fund;
        ``(2) all amounts made available to carry out the authorities 
    described in subsection (d)(2) for the fiscal year shall be 
    deposited into the rural utilities account of the Trust Fund; and
        ``(3) all amounts made available to carry out the authorities 
    described in subsection (d)(3) for the fiscal year shall be 
    deposited into the rural business and cooperative development 
    account of the Trust Fund.
    ``(d) Function Categories.--The function categories described in 
this subsection are the following:
        ``(1) Rural community facilities.--The rural community 
    development category consists of all amounts made available for--
            ``(A) community facility direct and guaranteed loans under 
        section 306(a)(1); or
            ``(B) community facility grants under section 306(a)(19).
        ``(2) Rural utilities.--The rural utilities category consists 
    of all amounts made available for--
            ``(A) water or waste disposal grants or direct or 
        guaranteed loans under paragraph (1) or (2) of section 306(a);
            ``(B) rural water or wastewater technical assistance and 
        training grants under section 306(a)(14);
            ``(C) emergency community water assistance grants under 
        section 306A; or
            ``(D) solid waste management grants under section 310B(b).
        ``(3) Rural business and cooperative development.--The rural 
    business and cooperative development category consists of all 
    amounts made available for--
            ``(A) rural business opportunity grants under section 
        306(a)(11)(A);
            ``(B) business and industry guaranteed loans under section 
        310B(a)(1); or
            ``(C) rural business enterprise grants or rural educational 
        network grants under section 310B(c).
    ``(e) National Reserve Account.--
        ``(1) Transfers into account.--
            ``(A) Initial transfer.--Each fiscal year, the Secretary 
        shall transfer to the national reserve account of the Trust 
        Fund from each account specified in subsection (c) not more 
        than the applicable percentage of the amount deposited in each 
        such account for the fiscal year under subsection (c).
            ``(B) Repooling of unobligated funds allocated among the 
        states.--Not earlier than July 15 of each fiscal year, the 
        Secretary shall transfer to the national reserve account from 
        each account specified in subsection (c) any amount in the 
        account that is allocated for any State, and has not been 
        obligated by the State director or obligated for specific 
        approved projects in the State.
        ``(2) Use.--The Secretary may use amounts in the national 
    reserve account of the Trust Fund, pursuant to any authority 
    described in subsection (d)--
            ``(A) in the case of a fiscal year other than fiscal year 
        2001 or 2002--
                ``(i) to meet situations of exceptional need;
                ``(ii) to meet emergency situations; or
                ``(iii) to provide funds to entities whose applications 
            for funds provided under this subtitle have been approved 
            and who have not received funds sufficient to meet the 
            needs of the projects described in the applications; or
            ``(B) in the case of fiscal years 2001 and 2002--
                ``(i) to meet situations of exceptional need; or
                ``(ii) to meet emergency situations.
        ``(3) Applicable percentage defined.--In paragraph (1), the 
    term `applicable percentage' means, with respect to a fiscal year--
            ``(A) 15 percent for fiscal year 1997;
            ``(B) 12.5 percent for fiscal year 1998;
            ``(C) 10 percent for fiscal year 1999;
            ``(D) 7.5 percent for fiscal year 2000;
            ``(E) 5 percent for fiscal year 2001; and
            ``(F) 5 percent for fiscal year 2002.
    ``(f) Federally Recognized Indian Tribe Account.--
        ``(1) Transfers into account.--Each fiscal year, the Secretary 
    shall transfer to the federally recognized Indian tribe account of 
    the Trust Fund 3 percent of the amount deposited into the Trust 
    Fund for the fiscal year under subsection (d).
        ``(2) Use of funds.--The Secretary shall make available to 
    federally recognized Indian tribes the amounts in the federally 
    recognized Indian tribe account for use pursuant to any authority 
    described in subsection (d).
    ``(g) Allocation Among States.--The Secretary shall allocate the 
amounts in each account specified in subsection (c) among the States 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.
    ``(h) Availability of Funds Allocated for States.--The Secretary 
shall make available to each State the total amount allocated for the 
State under subsection (g) of this section that remains after applying 
section 381G.

``SEC. 381F. TRANSFERS OF FUNDS.

    ``(a) General Authority.--Subject to subsection (b) of this 
section, the State Director of any State may, during any fiscal year, 
transfer from each account specified in section 381E(c) a total of not 
more than 25 percent of the amount in the account that is allocated for 
the State for the fiscal year to any other account in which amounts are 
allocated for the State for the fiscal year.
    ``(b) Limitation.--Except as provided in subsection (c) of this 
section, a transfer otherwise authorized by subsection (a) of this 
section to be made during a fiscal year may not be made to the extent 
that the sum of the amount to be transferred and all amounts so 
transferred by State directors under subsection (a) of this section 
during the fiscal year exceeds 10 percent of the total amount made 
available to carry out the authorities described in section 381E(d) for 
the fiscal year.
    ``(c) Exceptions.--Subsections (a) and (b) shall not apply to a 
transfer of funds by a State director if the State director certifies 
to the Secretary that--
        ``(1) there is an approved application for a project in the 
    function category to which the funds are to be transferred but 
    funds are not available for the project in the function category; 
    and
        ``(2)(A) there is no such approved application in the function 
    category from which the funds are to be transferred; or
        ``(B) the community that would benefit from the project has a 
    smaller population and a lesser per capita income than any 
    community that would benefit from a project in the function 
    category from which the funds are to be transferred.

``SEC. 381G. GRANTS TO STATES.

    ``(a) Simple Grants.--
        ``(1) Mandatory grant.--The Secretary shall make a grant to any 
    eligible State for any fiscal year for which the State requests a 
    grant under this section in an amount equal to 5 percent of the 
    total amount allocated for the State under section 381E(g).
        ``(2) Permissive grant.--Before July 15 of each fiscal year, 
    the Secretary may make a grant to any State to defray the cost of 
    any subsidy associated with a guarantee provided by an eligible 
    public entity of the State under section 381H in an amount that 
    does not exceed 5 percent of the total amount allocated for the 
    State under section 381E(g).
        ``(3) Source of funds.--The Secretary shall make grants to a 
    State under paragraphs (1) and (2) from amounts allocated for the 
    State in the accounts specified in section 381E(c), by reducing 
    each such allocated amount by the same percentage.
    ``(b) Matching Grants.--
        ``(1) In general.--Subject to paragraph (2), the Secretary 
    shall make a grant to any eligible State for any fiscal year for 
    which the State requests a grant under this section in an amount 
    equal to 5 percent of the amount allocated for the State for the 
    fiscal year under section 381E(h).
        ``(2) Eligibility.--A State shall be eligible for a grant under 
    paragraph (1) if the State makes commitments to the Secretary to--
            ``(A) expend from non-Federal sources in accordance with 
        subsection (c) an amount that is not less than 200 percent of 
        the amount of the grant; and
            ``(B) maintain the amounts paid to the State under this 
        subsection and the amount referred to in subparagraph (A) in an 
        account separate from all other State funds until expended in 
        accordance with subsection (c).
        ``(3) Source of funds.--If the Secretary makes a grant under 
    paragraph (1) before July 15 of the fiscal year, the grant shall be 
    made from amounts allocated for the State in the accounts specified 
    in section 381E(c) for the fiscal year, by reducing each allocated 
    amount by the same percentage.
    ``(c) Use of Funds.--A State to which funds are provided under this 
section shall use the funds in rural areas for any activity authorized 
under the authorities described in section 381E(d) in accordance with 
the State strategic plan referred to in section 381D.
    ``(d) Maintenance of Effort.--The State shall provide assurances to 
the Secretary that funds provided to the State 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.
    ``(e) Appeals.--The Secretary shall provide to a State an 
opportunity to appeal any action taken with respect to the State under 
this section.
    ``(f) Administrative Costs.--Federal funds shall not be used for 
any administrative costs incurred by a State in carrying out this 
subtitle.
    ``(g) Expenditure 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.
        ``(2) Failure to obligate.--If a State fails to obligate 
    payments in accordance with paragraph (1), the Secretary shall make 
    an equal reduction in the amount of payments provided to the State 
    under this section for the immediately succeeding 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.
    ``(h) 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, on such terms and 
conditions as the Secretary may prescribe, may guarantee and make 
commitments to guarantee 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 
activities authorized and funded under section 381G.
    ``(c) Limitation.--The Secretary may not make a guarantee or 
commitment to guarantee with respect to a note or other obligation if 
the total amount of outstanding notes or obligations guaranteed under 
this section (excluding any amount repaid under the contract entered 
into under subsection (e)(1)(A)) for issuers in the State would exceed 
an amount equal to 5 times the sum of the total amount of grants made 
to the State under section 381G.
    ``(d) Payment of Principal, Interest, and Costs.--Notwithstanding 
any other provision of this subtitle, a State to which a grant is made 
under section 381G may use the grant (including program income derived 
from the grant) to pay principal and interest due (including such 
servicing, underwriting, or other costs as may be specified in 
regulations of the Secretary) on any note or other obligation 
guaranteed under 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 eligible 
    public entity in the State.
    ``(f) Pledged Grants for Repayments.--Notwithstanding any other 
provision of this subtitle, the Secretary may 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 such purpose 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.

    ``An application for assistance under this subtitle shall include 
evidence of significant community support for the project for which the 
assistance is requested. In the case of assistance for a community 
facilities or infrastructure project, the evidence shall be in the form 
of a certification of support for the project from each affected 
general purpose local government.

``SEC. 381J. INTERSTATE COLLABORATION.

    ``The Secretary shall permit the establishment of voluntary pooling 
arrangements among States, and regional fund-sharing agreements, to 
carry out projects receiving assistance under this subtitle.

``SEC. 381K. ANNUAL REPORT.

    ``(a) In General.--The Secretary, in collaboration with State, 
local, public, 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 by subsection (a) to Congress 
    and the chief executives of the States participating in the program 
    established under this subtitle; and
        ``(2) make the report available to State and local 
    participants.

``SEC. 381L. 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 for, 
coordinate, make recommendations with respect to, and evaluate the 
performance of, all Federal rural development efforts.

``SEC. 381M. 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 referred to in section 381D 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. 381N. ELECTRONIC TRANSFER.

    ``The Secretary shall transfer funds in accordance with this 
subtitle through electronic transfer as soon as practicable after the 
date of enactment of this subtitle.

``SEC. 381O. RURAL VENTURE CAPITAL DEMONSTRATION PROGRAM.

    ``(a) In General.--The Secretary may designate for each fiscal year 
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 amounts in the national reserve account 
    of the Trust Fund, 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 contingent liabilities 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 investment, 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, as determined by the Secretary.
            ``(C) Geographic diversity.--To the extent practicable, the 
        Secretary shall designate organizations in diverse geographic 
        areas.''.

SEC. 762. SIMPLIFIED, UNIFORM APPLICATION FOR ASSISTANCE FROM ALL 
              FEDERAL RURAL DEVELOPMENT PROGRAMS.

    Not later than 1 year after the date of enactment of this Act, the 
Secretary of Agriculture shall develop a streamlined, simplified, and 
uniform application which shall be used in applying for assistance 
under all of the following:
        (1) Sections 304(b), 306, 306A, 306C, 306D, 310B, and 375 and 
    subtitle E of the Consolidated Farm and Rural Development Act (7 
    U.S.C. 1924(b), 1926, 1926a, 1926c, 1926d, and 1932).
        (2) Subtitle G of title XVI and sections 2281, 2333, and 2381 
    of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 
    U.S.C. 5901-5908, 5177a, 950aaa-2, and 3125b).
        (3) Subtitle C of title IX of the Food, Agriculture, 
    Conservation, and Trade Act Amendments of 1991 (Public Law 102-237: 
    7 U.S.C. 5930 note).
        (4) Section 1323(b) of the Food Security Act of 1985 (Public 
    Law 99-198; 7 U.S.C. 1932 note).
        (5) Title V and section 603(c) of the Rural Development Act of 
    1972 (7 U.S.C. 2661-2669 and 2204a(c)).
        (6) Sections 5 and 311 and title IV of the Rural 
    Electrification Act of 1936 (7 U.S.C. 905, 940a, and 941-950b).

SEC. 763. COMMUNITY FACILITIES GRANT PROGRAM.

    Section 306(a) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1926(a)) (as amended by section 741(a)(5)) is amended by 
adding at the end the following:
        ``(19) 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 for a facility shall not exceed 75 
            percent of the cost of developing the 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 
        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)'' the first place the term appears; 
        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.

    ``(a) Prohibition.--Assistance under any rural development program 
administered by the Secretary or any agency of the Department of 
Agriculture shall not be conditioned on any requirement that the 
recipient of the assistance accept or receive electric service from any 
particular utility, supplier, or cooperative.
    ``(b) Ensuring Compliance.--The Secretary shall establish, by 
regulation, adequate safeguards to ensure that assistance under any 
rural development program is not subject to such a condition. The 
safeguards shall include periodic certifications and audits, and 
appropriate measures and sanctions against any person violating, or 
attempting to violate subsection (a).
    ``(c) Definition of Rural Development Programs.--In this section, 
the term `rural development program' means the following:
        ``(1) Sections 304(b), 306, 306A, 306C, 306D, 310B, and 375 and 
    subtitle E of the Consolidated Farm and Rural Development Act (7 
    U.S.C. 1924(b), 1926, 1926a, 1926c, 1926d, and 1932).
        ``(2) Subtitle G of title XVI and sections 2281, 2333, and 2381 
    of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 
    U.S.C. 5901-5908, 5177a, 950aaa-2, and 3125b).
        ``(3) Subtitle C of title IX of the Food, Agriculture, 
    Conservation, and Trade Act Amendments of 1991 (Public Law 102-237; 
    7 U.S.C. 5930 note).
        ``(4) Section 1323(b) of the Food Security Act of 1985 (Public 
    Law 99-198; 7 U.S.C. 1932 note).
        ``(5) Title V and section 603(c) of the Rural Development Act 
    of 1972 (7 U.S.C. 2661-2669 and 2204a(c)).
        ``(6) Sections 5 and 311 and title IV of this Act (7 U.S.C. 
    905, 940a, and 941-950b).
    ``(d) Regulations.--Not later than 60 days after the date of 
enactment of the Federal Agriculture Improvement and Reform Act of 
1996, the Secretary shall issue final regulations to ensure compliance 
with subsection (a).''.

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. FUND FOR RURAL AMERICA.

    (a) In General.--There is established in the Treasury of the United 
States an account to be known as the Fund for Rural America (referred 
to in this section as the ``Account'') to provide funds for activities 
described in subsection (c).
    (b) Funding.--
        (1) In general.--On January 1, 1997, October 1, 1998, and 
    October 1, 1999, out of any funds in the Treasury not otherwise 
    appropriated, the Secretary of the Treasury shall transfer 
    $100,000,000 to the Account.
        (2) Entitlement.-- The Secretary of Agriculture (referred to in 
    this section as the ``Secretary'')--
            (A) shall be entitled to receive the funds transferred to 
        the Account under paragraph (1);
            (B) shall accept the funds; and
            (C) shall use the funds to carry out this section.
        (3) Purposes.--Subject to subsection (d), of the amounts 
    transferred to the Account for a fiscal year, the Secretary shall 
    make available--
            (A) for activities described in subsection (c)(1), not less 
        than \1/3\ and not more than \2/3\ of the funds in the Account; 
        and
            (B) for activities described in subsection (c)(2), all 
        funds in the Account not made available by the Secretary for 
        activities described in subsection (c)(1).
    (c) Activities.--
        (1) Rural development.--
            (A) In general.--The Secretary may use the funds in the 
        Account for a rural development activity--
                (i) authorized under the Housing Act of 1949 for--

                    (I) direct loans to low-income borrowers under 
                section 502 (42 U.S.C. 1472);
                    (II) loans for financial assistance for housing for 
                domestic farm laborers under section 514 (42 U.S.C. 
                1484);
                    (III) financial assistance for housing for domestic 
                farm laborers under section 516 (42 U.S.C. 1486);
                    (IV) payments for elderly who are not now receiving 
                rental assistance under section 521 (42 U.S.C. 1490a);
                    (V) grants and contracts for mutual and self-help 
                housing under section 523(b)(1)(A) (42 U.S.C. 
                1490c(b)(1)(A)); or
                    (VI) grants for rural housing preservation under 
                section 533 (42 U.S.C. 1490m); or

                (ii) conducted under any rural development program, 
            including a program authorized under--

                    (I) the Consolidated Farm and Rural Development Act 
                (7 U.S.C. 1921 et seq.);
                    (II) subtitle G of title XVI and title XXIII of the 
                Food, Agriculture, Conservation, and Trade Act of 1990;
                    (III) title V of the Rural Development Act of 1971 
                (7 U.S.C. 2661 et seq.); or
                    (IV) section 1323(b) of the Food Security Act of 
                1985 (Public Law 99-198; 7 U.S.C. 1932 note).

            (B) Limitation on programs funded.--The Secretary may not 
        expend funds made available to carry out activities described 
        in subparagraph (A) for any activity that did not receive 
        appropriations for fiscal year 1995. Funds expended under this 
        section for any program purpose shall be spent in accordance 
        with and subject to the applicable program limitations, 
        restrictions, and priorities found in the underlying program 
        authority and this Act.
            (C) Limitation on housing assistance.--Not more than 20 
        percent of the funds made available to carry out activities 
        described in subparagraph (A) shall be made available to carry 
        out activities described in subparagraph (A)(i).
            (D) Disclosure of allocation.--For any fiscal year, the 
        Secretary shall not disclose the allocation of funds under this 
        section for any activity described in subparagraph (A) until 
        the date that is 1 day after the date of enactment of 
        legislation authorizing appropriations for the Department of 
        Agriculture for any period in the fiscal year.
        (2) Research.--
            (A) In general.--The Secretary may use the funds in the 
        Account for research, extension, and education grants to--
                (i) increase international competitiveness, efficiency, 
            and farm profitability;
                (ii) reduce economic and health risks;
                (iii) conserve and enhance natural resources;
                (iv) develop new crops, new crop uses, and new 
            agricultural applications of biotechnology;
                (v) enhance animal agricultural resources;
                (vi) preserve plant and animal germplasm;
                (vii) increase economic opportunities in farming and 
            rural communities; and
                (viii) expand locally-owned value-added processing.
            (B) Eligible grantee.--The Secretary may make a grant under 
        this paragraph to--
                (i) a Federal research agency;
                (ii) a national laboratory;
                (iii) a college or university or a research foundation 
            maintained by a college or university; or
                (iv) a private research organization with an 
            established and demonstrated capacity to perform research 
            or technology transfer.
            (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) Outcome-oriented research at the discovery end 
                of the spectrum to provide breakthrough results.
                    (II) Exploratory and advanced development and 
                technology with well-identified outcomes.
                    (III) A national, regional, or multi-State program 
                oriented primarily toward extension programs and 
                education programs demonstrating and supporting the 
                competitiveness of United States agriculture.

                (ii) Smaller institutions.--Of the amounts made 
            available for activities described in this paragraph, not 
            less than 15 percent shall be awarded to colleges, 
            universities, or research foundations eligible for a grant 
            under subparagraph (B)(iii) that rank in the lowest \1/3\ 
            of such colleges, universities, and foundations on the 
            basis of Federal research funds received under a provision 
            of law other than this section.
            (D) Administration.--
                (i) Priority.--In administering this paragraph, the 
            Secretary shall--

                    (I) establish criteria for allocating grants based 
                on the priorities in subparagraph (A) and in 
                consultation with the National Agricultural Research, 
                Extension, Education, and Economics Advisory Board 
                established under section 1408 of the National 
                Agricultural Research, Extension, and Teaching Policy 
                Act of 1977 (7 U.S.C. 3123);
                    (II) seek and accept proposals for grants;
                    (III) determine the relevance and merit of 
                proposals through a system of peer review and review by 
                the National Agricultural Research, Extension, 
                Education, and Economics Advisory Board; and
                    (IV) award grants on the basis of merit, quality, 
                and relevance to advancing the purposes of federally 
                supported agricultural research, extension, and 
                education provided in section 1402 of the National 
                Agricultural Research, Extension, and Teaching Policy 
                Act of 1977 (7 U.S.C. 3101).

                (ii) Competitive basis.--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 making a grant 
            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) Delegation.--The Secretary shall administer this 
            section through the Cooperative State Research, Education, 
            and Extension Service of the Department of Agriculture.
                (vi) Availability of funds.--Funds shall be available 
            for obligation under this paragraph for a 2-year period.
                (vii) Administrative costs.--The Secretary may use not 
            more than 4 percent of the funds made available for 
            activities described in this paragraph for administrative 
            costs incurred by the Secretary in carrying out this 
            paragraph.
                (viii) Buildings.--Funds made available for activities 
            described in this paragraph shall not be used 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).
    (d) Limitations.--Amounts in the Account may not be used for an 
activity described in subsection (c) for a fiscal year if the program 
funding level for the fiscal year for the activity is less than 90 
percent of the amount appropriated for the activity for fiscal year 
1996, adjusted for inflation.

SEC. 794. UNDER SECRETARY OF AGRICULTURE FOR RURAL ECONOMIC AND 
              COMMUNITY DEVELOPMENT RENAMED THE UNDER SECRETARY OF 
              AGRICULTURE FOR RURAL DEVELOPMENT.

    (a) In General.--Section 231 of the Department of Agriculture 
Reorganization Act of 1994 (7 U.S.C. 6941) is amended--
        (1) in the section heading, by striking ``economic and 
    community''; and
        (2) by striking ``Economic and Community'' each place such term 
    appears in subsections (a), (b), and (c).
    (b) Conforming Amendment.--Section 5314 of title 5, United States 
Code, is amended by striking ``Economic and Community''.

             TITLE VIII--RESEARCH, EXTENSION, AND EDUCATION
  Subtitle A--Modification and Extension of Activities Under 1977 Act

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 maintaining and enhancing 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 maintain the balance between yield and environmental 
    soundness;
        ``(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. 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 30 
    members, appointed by the Secretary.
        ``(2) Selection of members.--The Secretary shall appoint 
    members of the Advisory Board from nominations submitted by 
    organizations, associations, societies, councils, federations, 
    groups, and companies fitting the criteria specified in paragraph 
    (3).
        ``(3) Membership categories.--The Advisory Board shall consist 
    of members from each of the following categories:
            ``(A) 1 member representing a national farm organization.
            ``(B) 1 member representing farm cooperatives.
            ``(C) 1 member actively engaged in the production of a food 
        animal commodity.
            ``(D) 1 member actively engaged in the production of a 
        plant commodity.
            ``(E) 1 member representing a national animal commodity 
        organization.
            ``(F) 1 member representing a national crop commodity 
        organization.
            ``(G) 1 member representing a national aquaculture 
        association.
            ``(H) 1 member representing a national food animal science 
        society.
            ``(I) 1 member representing a national crop, soil, 
        agronomy, horticulture, or weed science society.
            ``(J) 1 member representing a national food science 
        organization.
            ``(K) 1 member representing a national human health 
        association.
            ``(L) 1 member representing a national nutritional science 
        society.
            ``(M) 1 member representing the land-grant colleges and 
        universities eligible to receive funds under the Act of July 2, 
        1862 (7 U.S.C. 301 et seq.).
            ``(N) 1 member representing the land-grant colleges and 
        universities eligible to receive funds under the Act of August 
        30, 1890 (7 U.S.C. 321 et seq.), including Tuskegee University.
            ``(O) 1 member representing the 1994 Institutions (as 
        defined in section 532 of the Equity in Educational Land-Grant 
        Status Act of 1994 (Public Law 103-382; 7 U.S.C. 301 note)).
            ``(P) 1 member representing Hispanic-serving institutions.
            ``(Q) 1 member representing the American Colleges of 
        Veterinary Medicine.
            ``(R) 1 member representing that portion of the scientific 
        community not closely associated with agriculture.
            ``(S) 1 member engaged in the transportation of food and 
        agricultural products to domestic and foreign markets.
            ``(T) 1 member representing food retailing and marketing 
        interests.
            ``(U) 1 member representing food and fiber processors.
            ``(V) 1 member actively engaged in rural economic 
        development.
            ``(W) 1 member representing a national consumer interest 
        group.
            ``(X) 1 member representing a national forestry group.
            ``(Y) 1 member representing a national conservation or 
        natural resource group.
            ``(Z) 1 member representing private sector organizations 
        involved in international development.
            ``(AA) 1 member representing an agency within the 
        Department of Agriculture that lacks research capabilities.
            ``(BB) 1 member representing a research agency of the 
        Federal Government (other than the Department of Agriculture).
            ``(CC) 1 member representing a national social science 
        association.
            ``(DD) 1 member representing national organizations 
        directly concerned with agricultural research, education, and 
        extension.
        ``(4) Ex officio members.--The Secretary, the Under Secretary 
    of Agriculture for Research, Education, and Economics, the 
    Administrator of the Agricultural Research Service, the 
    Administrator of the Cooperative State Research, Education, and 
    Extension Service, the Administrator of the Economic Research 
    Service, and the Administrator of the National Agricultural 
    Statistics Service shall serve as ex officio members of the 
    Advisory Board.
        ``(5) Officers.--At the first meeting of the Advisory Board 
    each year, the members shall elect from among the members of the 
    Advisory Board a chairperson, vice chairperson, and 7 additional 
    members to serve on the executive committee established under 
    paragraph (6).
        ``(6) Executive committee.--The Advisory Board shall establish 
    an executive committee charged with the responsibility of working 
    with the Secretary and officers and employees of the Department of 
    Agriculture to summarize and disseminate the recommendations of the 
    Advisory Board.
    ``(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. 803. 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 (3) 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 this Act shall not apply to any entity 
    described in paragraph (3).
        ``(3) Entities described.--This subsection shall 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--
                ``(i) full-time Federal employees; and
                ``(ii) one or more individuals who are employed by, or 
            are officials of--

                    ``(I) a State cooperative institution or State 
                cooperative agency; or
                    ``(II) a public college or university or other 
                postsecondary institution.''.

SEC. 804. COORDINATION AND PLANNING OF AGRICULTURAL RESEARCH, 
              EXTENSION, AND EDUCATION.

    The National Agricultural Research, Extension, and Teaching Policy 
Act of 1977 is amended by inserting after section 1413 (7 U.S.C. 3128) 
the following:

``SEC. 1413A. ACCOUNTABILITY.

    ``(a) Review of Information Technology Systems.--The Secretary 
shall conduct a comprehensive review of state-of-the-art information 
technology systems that are available for use in developing the system 
required by subsection (b).
    ``(b) Monitoring and Evaluation System.--The Secretary shall 
develop and carry out a system to monitor and evaluate agricultural 
research and extension activities conducted or supported by the 
Department of Agriculture that will enable the Secretary to measure the 
impact and effectiveness of research, extension, and education programs 
according to priorities, goals, and mandates established by law. In 
developing the system, the Secretary shall incorporate information 
transfer technologies to optimize public access to research 
information.
    ``(c) Consistency With Other Requirements.--The Secretary shall 
develop and implement the system in a manner consistent with the 
Government Performance and Results Act of 1993 (Public Law 103-62; 107 
Stat. 285) and amendments made by the Act.
    ``(d) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.

``SEC. 1413B. 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 this Act 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. 805. GRANTS AND FELLOWSHIPS FOR FOOD AND AGRICULTURAL SCIENCES 
              EDUCATION.

    (a) Purpose of Grants.--Section 1417(b) of the National 
Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 
U.S.C. 3152(b)) is amended by striking paragraph (4) and inserting the 
following:
        ``(4) to design and implement food and agricultural programs to 
    build teaching and research capacity at colleges and universities 
    having significant minority enrollments;''.
    (b) Research Foundations.--Section 1417(c) of the National 
Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 
U.S.C. 3152(c)) is amended by adding at the end the following:
        ``(3) Research foundations.--An eligible college or university 
    under subsection (b) includes a research foundation maintained by 
    the college or university.''.
    (c) Extension of Program.--Section 1417(i) of the National 
Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 
U.S.C. 3152(i)) is amended by striking ``1995'' and inserting ``1997''.
    (d) Secondary Education and 2-Year Postsecondary Education Teaching 
Programs.--Section 1417 of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3152) is amended--
        (1) by redesignating subsections (h) and (i) as subsections (i) 
    and (j), respectively; and
        (2) by inserting after subsection (g) the following:
    ``(h) Secondary Education and 2-Year Postsecondary Education 
Teaching Programs.--
        ``(1) Definitions.--In this subsection:
            ``(A) Institution of higher education.--The term 
        `institution of higher education' has the meaning given the 
        term in section 1201(a) of the Higher Education Act of 1965 (20 
        U.S.C. 1141(a)).
            ``(B) Secondary school.--The term `secondary school' has 
        the meaning given the term in section 14101(25) of the 
        Elementary and Secondary Education Act of 1965 (20 U.S.C. 
        8801(25)).
        ``(2) 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.
        ``(3) Grants.--The Secretary may make competitive or 
    noncompetitive grants, for grant periods not to exceed 5 years, to 
    public secondary schools, and institutions of higher education that 
    award an associate's degree, that the Secretary determines 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 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 by the grant 
        recipient with other secondary schools, institutions of higher 
        education that award an associate's degree, and institutions of 
        higher education that award a bachelor's degree 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.''.

SEC. 806. 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 ``1997''.

SEC. 807. POLICY RESEARCH CENTERS.

    The National Agricultural Research, Extension, and Teaching Policy 
Act of 1977 is amended by inserting after section 1419 (7 U.S.C. 3154) 
the following:

``SEC. 1419A. 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 described in subsection (b) 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.--State agricultural experiment stations, 
colleges and universities, other research institutions and 
organizations, private organizations, corporations, and individuals 
shall be eligible to apply for funding under subsection (a).
    ``(c) Activities.--Under this section, funding may be provided for 
disciplinary and interdisciplinary research and education concerning 
policy research 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 and 1997.''.

SEC. 808. HUMAN NUTRITION INTERVENTION AND HEALTH PROMOTION RESEARCH 
              PROGRAM.

    The National Agricultural Research, Extension, and Teaching Policy 
Act of 1977 is amended by striking section 1424 (7 U.S.C. 3174) and 
inserting the following:

``SEC. 1424. HUMAN NUTRITION INTERVENTION AND HEALTH PROMOTION RESEARCH 
              PROGRAM.

    ``(a) Authority of Secretary.--The Secretary may establish, and 
award grants for projects for, a multi-year research initiative on 
human nutrition intervention and health promotion.
    ``(b) Emphasis of Initiative.--In administering human nutrition 
research projects under this section, the Secretary shall give specific 
emphasis to--
        ``(1) coordinated longitudinal research assessments of 
    nutritional status; and
        ``(2) 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.
    ``(c) 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.
    ``(d) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section for 
fiscal years 1996 and 1997.

``SEC. 1424A. PILOT RESEARCH PROGRAM TO COMBINE MEDICAL AND 
              AGRICULTURAL RESEARCH.

    ``(a) Findings.--Congress finds the following:
        ``(1) Although medical researchers in recent years have 
    demonstrated that there are several naturally occurring compounds 
    in many vegetables and fruits that can aid in the prevention of 
    certain forms of cancer, coronary heart disease, stroke, and 
    atherosclerosis, there has been almost no research conducted to 
    enhance these compounds in food plants by modern breeding and 
    molecular genetic methods.
        ``(2) By linking the appropriate medical and agricultural 
    research scientists in a highly-focused, targeted research program, 
    it should be possible to develop new varieties of vegetables and 
    fruits that would provide greater prevention of diet-related 
    diseases that are a major cause of death in the United States.
    ``(b) Pilot Research Program.--The Secretary shall conduct, through 
the Cooperative State Research, Education, and Extension Service, a 
pilot research program to link major cancer and heart and other 
circulatory disease research efforts with agricultural research efforts 
to identify compounds in vegetables and fruits that prevent these 
diseases. Using information derived from such combined research 
efforts, the Secretary shall assist in the development of new varieties 
of vegetables and fruits having enhanced therapeutic properties for 
disease prevention.
    ``(c) Agreements.--The Secretary shall carry out the pilot program 
through agreements entered into with land-grant colleges or 
universities, other universities, State agricultural experiment 
stations, the State cooperative extension services, nonprofit 
organizations with demonstrable expertise, or Federal or State 
governmental entities. The Secretary shall enter into the agreements on 
a competitive basis.
    ``(d) Authorization of Appropriations.--There are authorized to be 
appropriated $10,000,000 for fiscal year 1997 to carry out the pilot 
program.''.

SEC. 809. 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 ``$63,000,000'' and all that follows through 
``fiscal year 1995'' and inserting ``, $83,000,000 for each of fiscal 
years 1996 and 1997''.

SEC. 810. 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. 811. 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 ``1997'';
        (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. 812. 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 ``1997'';
        (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 this Act 
shall not apply to a panel or board created solely for the purpose of 
reviewing applications or proposals submitted under this subtitle.''.

SEC. 813. 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 and 1997''.

SEC. 814. NATIONAL RESEARCH AND TRAINING CENTENNIAL CENTERS.

    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 
    and 1997,'' after ``1995''; and
        (2) in subsection (f), by striking ``1995'' and inserting 
    ``1997''.

SEC. 815. PROGRAMS FOR HISPANIC-SERVING INSTITUTIONS.

    (a) In General.--The National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 is amended by inserting after section 1448 
(7 U.S.C. 3222c) the following:

        ``Subtitle H--Programs for Hispanic-Serving Institutions

``SEC. 1455. EDUCATION GRANTS PROGRAMS FOR HISPANIC-SERVING 
              INSTITUTIONS.

    ``(a) Grant Authority.--The Secretary may make competitive grants 
(or grants without regard to any requirement for competition) to 
Hispanic-serving institutions for the purpose of promoting and 
strengthening the ability of Hispanic-serving institutions to carry out 
education, applied research, and related community development 
programs.
    ``(b) Use of Grant Funds.--Grants made under this section shall be 
used--
        ``(1) to support the activities of consortia of Hispanic-
    serving institutions to enhance educational equity for 
    underrepresented students;
        ``(2) to strengthen institutional educational capacities, 
    including libraries, curriculum, faculty, scientific 
    instrumentation, instruction delivery systems, and student 
    recruitment and retention, in order to respond to identified State, 
    regional, national, or international educational needs in the food 
    and agricultural sciences;
        ``(3) to attract and support undergraduate and graduate 
    students from underrepresented groups in order to prepare them for 
    careers related to the food, agricultural, and natural resource 
    systems of the United States, beginning with the mentoring of 
    students at the high school level and continuing with the provision 
    of financial support for students through their attainment of a 
    doctoral degree; and
        ``(4) to facilitate cooperative initiatives between 2 or more 
    Hispanic-serving institutions, or between Hispanic-serving 
    institutions and units of State government or the private sector, 
    to maximize the development and use of resources, such as faculty, 
    facilities, and equipment, to improve food and agricultural 
    sciences teaching programs.
    ``(c) Authorization of Appropriations.--There are authorized to be 
appropriated to make grants under this section $20,000,000 for fiscal 
year 1997.''.
    (b) Hispanic-Serving Institution Defined.--Paragraph (9) of section 
1404 of the National Agricultural Research, Extension, and Teaching 
Policy Act of 1977 (7 U.S.C. 3103) is amended to read as follows:
        ``(9) the term `Hispanic-serving institution' has the meaning 
    given the term by section 316(b)(1) of the Higher Education Act of 
    1965 (20 U.S.C. 1059c(b)(1));''.

SEC. 816. INTERNATIONAL AGRICULTURAL RESEARCH AND EXTENSION.

    Section 1458(a)(8) of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3291(a)(8)) is 
amended--
        (1) by striking ``establish'' and inserting ``continue''; and
        (2) by striking ``to be''.

SEC. 817. AUTHORIZATION OF APPROPRIATIONS FOR 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'' both places it appears and inserting ``1997''.

SEC. 818. AUTHORIZATION OF APPROPRIATIONS FOR 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 
1997''.

SEC. 819. SUPPLEMENTAL AND ALTERNATIVE CROPS RESEARCH.

    (a) Extension of Program.--Section 1473D(a) of the National 
Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 
U.S.C. 3319d(a)) is amended by striking ``1995'' and inserting 
``1997''.
    (b) Elimination of Pilot Nature of Program.--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), by striking ``and pilot'';
        (2) in subsection (c)(2)(B), by striking ``at pilot sites'' and 
    all that follows through ``the area'';
        (3) in subsection (c)(2)(C), by striking ``from pilot sites'';
        (4) in subsection (c)(2)(D)--
            (A) by striking ``near such pilot sites''; and
            (B) by striking ``successful pilot program'' and inserting 
        ``successful program''; and
        (5) in paragraph (3), by striking ``pilot''.
    (c) Additional Authority.--Section 1473D(c)(3) of the National 
Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 
U.S.C. 3319d(c)(3)) is amended--
        (1) in subparagraph (C), by striking ``and'' at the end;
        (2) in subparagraph (D), by striking the period at the end and 
    inserting a semicolon; and
        (3) 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. 820. AQUACULTURE ASSISTANCE PROGRAMS.

    (a) Definition.--Section 1404(3) of the National Agricultural 
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103(3)) 
is amended by inserting ``ornamental fish,'' after ``reptile,''.
    (b) 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.
    (c) Authorization of Appropriations for 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 ``1997''.
    (d) Authorization of Appropriations for 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 ``1997''.

SEC. 821. AUTHORIZATION OF APPROPRIATIONS FOR RANGELAND RESEARCH.

    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 ``1997''.

  Subtitle B--Modification and Extension of Activities Under 1990 Act

SEC. 831. WATER QUALITY RESEARCH, EDUCATION, AND COORDINATION.

    Section 1481(d) of the Food, Agriculture, Conservation, and Trade 
Act of 1990 (7 U.S.C. 5501(d)) is amended by striking ``1995'' and 
inserting ``1997''.

SEC. 832. 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 ``1997''.

SEC. 833. 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 ``1997''.

SEC. 834. 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 ``1997''.

SEC. 835. PLANT GENOME MAPPING PROGRAM.

    Section 1671(g) of the Food, Agriculture, Conservation, and Trade 
Act of 1990 (7 U.S.C. 5924(g)) is amended by inserting ``for fiscal 
years 1996 and 1997'' after ``appropriated''.

SEC. 836. CERTAIN SPECIALIZED RESEARCH PROGRAMS.

    Subsections (d)(4), (e)(4), and (i) of section 1672 of the Food, 
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5925) are 
each amended by striking ``1995'' and inserting ``1997''.

SEC. 837. 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 ``1997''.

SEC. 838. NATIONAL CENTERS FOR AGRICULTURAL PRODUCT QUALITY RESEARCH.

    (a) Purposes of National Centers.--Section 1675(a) of the Food, 
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5928(a)) is 
amended--
        (1) by redesignating paragraphs (5) and (6) as paragraphs (6) 
    and (7), respectively; and
        (2) by inserting after paragraph (4) the following:
        ``(5) enhance agricultural competitiveness through product 
    quality research and technology implementation;''.
    (b) Regional Basis of Centers.--Section 1675(b) of the Food, 
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5928(b)) is 
amended by striking paragraph (1) and inserting the following:
        ``(1) Regional basis.--The centers shall be regionally based 
    units that conduct a broad spectrum of research, development, and 
    education programs to enhance the competitiveness, quality, safety 
    and wholesomeness of agricultural products.''.
    (c) Program Plan and Review.--Section 1675(d) of the Food, 
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5928(b)) is 
amended--
        (1) in paragraph (1), by striking the second sentence; and
        (2) in paragraph (2), by striking ``, but not less'' and all 
    that follows through ``the Secretary''.
    (d) Authorization of Appropriations.--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 ``1997''.

SEC. 839. RED MEAT SAFETY RESEARCH CENTER.

    Section 1676 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 5929) is amended to read as follows:

``SEC. 1676. RED MEAT SAFETY RESEARCH CENTER.

    ``(a) Establishment of Center.--The Secretary of Agriculture shall 
award a grant, on a competitive basis, to a research facility described 
in subsection (b) to establish a red meat safety research center.
    ``(b) Eligible Research Facility Described.--A research facility 
eligible for a grant under subsection (a) is a research facility that--
        ``(1) is part of a land-grant college or university, or other 
    federally supported agricultural research facility, located in 
    close proximity to a livestock slaughter and processing facility; 
    and
        ``(2) is staffed by professionals with a wide diversity of 
    scientific expertise covering all aspects of meat science.
    ``(c) Research Conducted.--The red meat safety research center 
established under subsection (a) shall carry out research related to 
general food safety, including--
        ``(1) the development of intervention strategies that reduce 
    microbiological contamination of carcass surfaces;
        ``(2) research regarding microbiological mapping of carcass 
    surfaces; and
        ``(3) the development of model hazard analysis and critical 
    control point plans.
    ``(d) Administration of Funds.--The Secretary of Agriculture shall 
administer funds appropriated to carry out this section.
    ``(e) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary for fiscal year 1997 to carry 
out this section.''.

SEC. 840. INDIAN RESERVATION EXTENSION AGENT PROGRAM.

    Section 1677 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 5930) is amended--
        (1) by redesignating subsection (f) as subsection (g); and
        (2) by inserting after subsection (e) the following:
    ``(f) Reduced Regulatory Burden.--On a determination by the 
Secretary of Agriculture that a program carried out under this section 
has been satisfactorily administered for not less than 2 years, the 
Secretary shall implement a reduced reapplication process for the 
continued operation of the program in order to reduce regulatory 
burdens on participating university and tribal entities.''.

SEC. 841. 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 
    ``1997''; and
        (2) in subsection (b)(2), by striking ``1996'' and inserting 
    ``1997''.

SEC. 842. 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 ``1997''.

SEC. 843. GLOBAL CLIMATE CHANGE.

    Section 2412 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 6710) is amended by striking ``1996'' and inserting 
``1997''.

        Subtitle C--Repeal of Certain Activities and Authorities

SEC. 851. 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. 852. JOINT COUNCIL ON FOOD AND AGRICULTURAL SCIENCES.

    (a) Repeal.--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 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,''.
        (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 Joint Council 
    developed under section 1407(f),''.
        (3) 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 ``the 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 ``one 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''.
        (4) 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''; and
            (B) in subsection (b), by striking ``Joint Council, 
        Advisory Board,'' and inserting ``Advisory Board''.
        (5) 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. 853. AGRICULTURAL SCIENCE AND TECHNOLOGY REVIEW BOARD.

    (a) Repeal.--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) is 
    amended--
            (A) in paragraph (16)(F), by adding ``and'' at the end;
            (B) in paragraph (17), by striking ``; and'' at the end and 
        inserting a period; and
            (C) by striking paragraph (18).
        (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 802(b)(2)) is 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 852(b)(3)) is 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 852(b)(4)) is amended--
            (A) in subsection (a), by striking ``or the Technology 
        Board''; and
            (B) in subsection (b), by striking ``and the Technology 
        Board''.

SEC. 854. 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. 855. 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. 856. 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. 857. 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.

SEC. 858. COMPOSTING RESEARCH AND EXTENSION PROGRAM.

    Section 1456 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 3130) is repealed.

SEC. 859. EDUCATION PROGRAM REGARDING HANDLING OF AGRICULTURAL 
              CHEMICALS AND AGRICULTURAL CHEMICAL CONTAINERS.

    (a) Repeal.--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. 860. PROGRAM ADMINISTRATION REGARDING SUSTAINABLE AGRICULTURE 
              RESEARCH AND EDUCATION.

    (a) Reporting Requirement.--Section 1622 of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 5812) is amended by 
striking subsection (b).
    (b) Advisory Council.--Section 1622 of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 5812) is amended--
        (1) in subsection (a)--
            (A) by striking paragraph (2);
            (B) in paragraph (3), by striking ``subsection (e)'' and 
        inserting ``subsection (b)''; and
            (C) by redesignating paragraphs (3) and (4) as paragraphs 
        (2) and (3), respectively;
        (2) by striking subsections (c) and (d);
        (3) by redesignating subsection (e) as subsection (b); and
        (4) in subsection (b)(2) (as so redesignated)--
            (A) by striking subparagraph (A); and
            (B) by redesignating subparagraphs (B) through (F) as 
        subparagraphs (A) through (E), respectively.
    (c) 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 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. 861. 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. 862. PLANT AND ANIMAL PEST AND DISEASE CONTROL PROGRAM.

    (a) Repeal.--Subtitle F of title XVI of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 5881 et seq.) 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. 863. CERTAIN SPECIALIZED RESEARCH PROGRAMS.

    Section 1672 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 5925) is amended--
        (1) by striking subsections (a), (f), (g), (h), and (j); and
        (2) by redesignating subsections (i) and (k) as subsections (f) 
    and (g), respectively.

SEC. 864. COMMISSION ON AGRICULTURAL RESEARCH FACILITIES.

    Section 1674 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 5927) is repealed.

SEC. 865. 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. 866. 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. 867. DEMONSTRATION AREAS FOR RURAL ECONOMIC DEVELOPMENT.

    Section 2348 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 2662a) is repealed.

SEC. 868. TECHNICAL ADVISORY COMMITTEE REGARDING GLOBAL CLIMATE CHANGE.

    Section 2404 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 6703) is repealed.

SEC. 869. COMMITTEE OF NINE UNDER HATCH ACT OF 1887.

    Section 3(c)3 of the Act of March 2, 1887 (commonly known as the 
``Hatch Act of 1887''; 7 U.S.C. 361c(c)3) is amended by striking ``, 
and shall be used'' and all that follows through ``by this paragraph''.

SEC. 870. COTTON CROP REPORTS.

    The Act of May 3, 1924 (43 Stat. 115, chapter 149; 7 U.S.C. 475), 
is repealed.

SEC. 871. RURAL ECONOMIC AND BUSINESS DEVELOPMENT AND ADDITIONAL 
              RESEARCH GRANTS UNDER TITLE V OF RURAL DEVELOPMENT ACT OF 
              1972.

    Section 502 of the Rural Development Act of 1972 (7 U.S.C. 2662) is 
amended by striking subsections (g) and (j).

SEC. 872. 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. 873. GRANTS TO UPGRADE 1890 LAND-GRANT COLLEGE EXTENSION 
              FACILITIES.

    Section 1416 of the National Agricultural Research, Extension, and 
Teaching Policy Act Amendments of 1981 (7 U.S.C. 3224) is repealed.

SEC. 874. INDIAN SUBSISTENCE FARMING DEMONSTRATION GRANT PROGRAM.

    Subtitle C of title IX of the Food, Agriculture, Conservation, and 
Trade Act Amendments of 1991 (Public Law 102-237; 7 U.S.C. 5930 note) 
is repealed.

             Subtitle D--Miscellaneous Research Provisions

SEC. 881. CRITICAL AGRICULTURAL MATERIALS RESEARCH.

    (a) Reports.--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 ``1997''.

SEC. 882. MEMORANDUM OF AGREEMENT REGARDING 1994 INSTITUTIONS.

    Section 533 of the Equity in Educational Land-Grant Status Act of 
1994 (Public Law 103-382; 7 U.S.C. 301 note) is amended by adding at 
the end the following:
    ``(d) Memorandum of Agreement.--Not later than January 6, 1997, the 
Secretary shall develop and implement a formal memorandum of agreement 
with the 1994 Institutions to establish programs to ensure that 
tribally controlled colleges and Native American communities equitably 
participate in Department of Agriculture employment, programs, 
services, and resources.''.

SEC. 883. SMITH-LEVER ACT FUNDING FOR 1890 LAND-GRANT COLLEGES, 
              INCLUDING TUSKEGEE UNIVERSITY.

    (a) Eligibility for Funds.--Section 3(d) of the Act of May 8, 1914 
(commonly known as the ``Smith-Lever Act''; 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 (7 U.S.C. 
321 et seq.), including Tuskegee University, 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 Amendment.--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 that Act (7 
U.S.C. 343(d)), to carry out programs or initiatives for which no funds 
were made available under section 3(d) of that 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 that 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''.

SEC. 884. AGRICULTURAL RESEARCH FACILITIES.

    (a) 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) Congressional agriculture committees.--The term 
    `congressional agriculture committees' means the Committee on 
    Appropriations and the Committee on Agriculture of the House of 
    Representatives and the Committee on Appropriations and the 
    Committee on Agriculture, Nutrition, and Forestry of the Senate.
        ``(3) 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, distribution, marketing, and 
        utilization of food and agricultural products;
            ``(C) forestry, including range management, production of 
        forest and range products, multiple use of forests 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.
        ``(4) Secretary.--The term `Secretary' means the Secretary of 
    Agriculture.
        ``(5) Task force.--The term `task force' means the Strategic 
    Planning Task Force established under section 4.

``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 congressional 
agriculture committees, 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.
    ``(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 congressional agriculture committees on the 
    results of the evaluation and assessment.

``SEC. 4. TASK FORCE ON 10-YEAR STRATEGIC PLAN FOR AGRICULTURAL 
              RESEARCH FACILITIES.

    ``(a) Establishment.--Not later than 6 months after the date of 
enactment of the Federal Agriculture Improvement and Reform Act of 
1996, the Secretary shall establish a task force, to be known as the 
`Strategic Planning Task Force'. The task force shall be comprised of 
15 members.
    ``(b) Composition.--The Secretary shall select the members of the 
task force from a list of individuals recommended by the Advisory Board 
established under section 1408 of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3123). In 
submitting the list to the Secretary, the Board may recommend for 
selection individuals (including members of the Advisory Board) who 
have expertise in facilities development, modernization, construction, 
consolidation, and closure.
    ``(c) Duties.--The task force shall review all currently operating 
agricultural research facilities constructed in whole or in part with 
Federal funds, and all planned agricultural research facilities 
proposed to be constructed with Federal funds, pursuant to criteria 
established by the Secretary, to ensure that a comprehensive research 
capacity is maintained.
    ``(d) 10-Year Strategic Plan.--Not later than 2 years after the 
task force is established, the task force shall prepare and submit to 
the Secretary and the congressional agriculture committees a 10-year 
strategic plan, reflecting both national and regional perspectives, for 
development, modernization, construction, consolidation, and closure of 
Federal agricultural research facilities and agricultural research 
facilities proposed to be constructed with Federal funds.
    ``(e) Applicability of Federal Advisory Committee Act.--
        ``(1) Public meetings.--All meetings of the task force 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 the task force 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 the task force.
    ``(f) Definition of Agricultural Research Facility.--
Notwithstanding section 2(1), in this section the term `agricultural 
research facility' means a facility for research in food and 
agricultural sciences.

``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 and 
1997 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.''.
    (b) Application of Amendment.--The amendment made by subsection 
(a), other than section 4 of the Research Facilities Act (as amended by 
subsection (a)), 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.
    (c) 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 ``1997''; and
        (2) by striking subsection (b).
    (d) 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. 885. NATIONAL COMPETITIVE RESEARCH INITIATIVE.

    (a) Authorization of Appropriations for Competitive Grants.--
Subsection (b)(10) of the Competitive, Special, and Facilities Research 
Grant Act (7 U.S.C. 450i(b)(10)) is amended--
        (1) by striking ``fiscal year 1995'' and inserting ``each of 
    fiscal years 1995 through 1997''; and
        (2) in subparagraph (B), by striking ``20 percent'' and 
    inserting ``40 percent''.
    (b) Availability of Funds.--Subsection (b) of the Competitive, 
Special, and Facilities Research Grant Act (7 U.S.C. 450i(b)) is 
amended by adding at the end the following:
    ``(11) Availability of Funds.--Funds made available under paragraph 
(10) shall be available for obligation for a 2-year period beginning on 
October 1 of the fiscal year for which the funds are made available.''.

SEC. 886. RURAL DEVELOPMENT RESEARCH AND EDUCATION.

    Section 502(a) of the Rural Development Act of 1972 (7 U.S.C. 
2662(a)) is amended 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.''.

SEC. 887. DAIRY GOAT RESEARCH PROGRAM.

    Section 1432(b)(5) 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 by striking ``1995'' and inserting 
``1997''.

SEC. 888. COMPETITIVE GRANTS FOR RESEARCH TO ERADICATE AND CONTROL 
              BROWN CITRUS APHID AND CITRUS TRISTEZA VIRUS.

    Section 1672 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 5925) (as amended by section 863) is amended by 
inserting before subsection (b) the following:
    ``(a) Brown Citrus Aphid and Citrus Tristeza Virus.--
        ``(1) Research grants authorized.--The Secretary of Agriculture 
    may make competitive grants available to support research for the 
    purpose of--
            ``(A) developing methods to eradicate the brown citrus 
        aphid and the citrus tristeza virus from citrus crops grown in 
        the United States; or
            ``(B) adapting citrus crops grown in the United States to 
        the brown citrus aphid and the citrus tristeza virus.
        ``(2) Method of providing grants.--Grants authorized under this 
    subsection shall be made in the same manner, and shall be subject 
    to the same conditions, as provided for competitive grants under 
    the Competitive, Special, and Facilities Research Grant Act (7 
    U.S.C. 450i).
        ``(3) Authorization of appropriations.--There are authorized to 
    be appropriated to carry out this subsection $3,000,000 for fiscal 
    year 1997.''.

SEC. 889. STUTTGART NATIONAL AQUACULTURE RESEARCH CENTER.

    (a) Transfer of Functions to Secretary of Agriculture.--
        (1) Purpose.--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 ``an experiment station or stations'' and 
        inserting ``1 or more centers''; and
            (C) in paragraph (5), by striking ``Department of 
        Agriculture'' and inserting ``Secretary of the Interior''.
        (2) 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''.
        (3) 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 department of agriculture.--
    Subject to section 1531 of title 31, United States Code, not later 
    than 90 days after the date of enactment of this Act, there are 
    transferred to the Department of Agriculture--
            (A) the personnel employed in connection with the 
        laboratory referred to in paragraph (1)(A);
            (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 in 
        connection with, held in connection with, arising from, 
        available to, or to be made available in connection with the 
        laboratory.
        (3) Nonduplication of facilities.--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. 890. EXPANSION OF AUTHORITIES RELATED TO NATIONAL ARBORETUM.

    (a) Solicitation of Gifts, Benefits, and Devises.--The first 
sentence of section 5 of the Act of March 4, 1927 (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 (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 (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. 891. TRANSFER OF AQUACULTURAL RESEARCH CENTER.

    (a) Transfer of Fish Culture Laboratory to Department of 
Agriculture.--
        (1) Designation of claude harris national aquacultural research 
    center.--
            (A) In general.--The Southeastern Fish Culture Laboratory 
        in Marion, Alabama, shall be known and designated as the 
        ``Claude Harris National Aquacultural 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 ``Claude Harris National Aquacultural 
        Research Center''.
        (2) Transfer of laboratory to department of agriculture.--
    Subject to section 1531 of title 31, United States Code, not later 
    than 90 days after the date of enactment of this Act, the Secretary 
    of the Interior may transfer, in whole or in part, to the 
    Department of Agriculture, with the consent of the Secretary 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 in 
        connection with, held in connection with, arising from, 
        available to, or to be made available in connection with the 
        laboratory.
    (b) Nonduplication of Facilities.--The research center designated 
by subsection (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 Secretary of Agriculture.

SEC. 892. USE OF REMOTE SENSING DATA AND OTHER DATA TO ANTICIPATE 
              POTENTIAL FOOD, FEED, AND FIBER SHORTAGES OR EXCESSES AND 
              TO PROVIDE TIMELY INFORMATION TO ASSIST FARMERS WITH 
              PLANTING DECISIONS.

    (a) Findings.--Congress finds that--
        (1) remote sensing data can be useful to predict impending 
    famine problems and forest infestations in time to allow remedial 
    action;
        (2) remote sensing data can inform the agricultural community 
    as to the condition of crops and the land that sustains those 
    crops; and
        (3) remote sensing data and other data can be valuable, when 
    received on a timely basis, in determining the need for additional 
    plantings of a particular crop or a substitute crop.
    (b) Information Development.--The Secretary of Agriculture and the 
Administrator of the National Aeronautics and Space Administration, 
maximizing private funding and involvement, shall provide farmers and 
other interested persons with timely information, through remote 
sensing, on crop conditions, fertilization and irrigation needs, pest 
infiltration, soil conditions, projected food, feed, and fiber 
production, and any other information available through remote sensing.
    (c) Coordination.--The Secretary of Agriculture and the 
Administrator of the National Aeronautics and Space Administration 
shall jointly develop a proposal to provide farmers and other 
prospective users with supply and demand information for food and 
fibers.
    (d) Sunset.--The authorities provided by this section shall expire 
5 years after the date of enactment of this Act.

SEC. 893. SENSE OF SENATE REGARDING METHYL BROMIDE ALTERNATIVE RESEARCH 
              AND EXTENSION ACTIVITIES.

    It is the sense of the Senate that--
        (1) the Department of Agriculture should continue to make 
    methyl bromide alternative research and extension activities a high 
    priority of the Department; and
        (2) the Department of Agriculture, the Environmental Protection 
    Agency, producer and processor organizations, environmental 
    organizations, and State agencies should continue their dialogue on 
    the risks and benefits of extending the 2001 phaseout deadline.

         Subtitle E--Research Authority After Fiscal Year 1997

SEC. 897. AUTHORIZATION OF APPROPRIATIONS.

    Subject to section 898, there are authorized to be appropriated for 
fiscal years 1998 through 2002 such sums as are necessary to carry out 
the agricultural research, extension, and education activities and 
initiatives of the Department of Agriculture.

SEC. 898. ACTIVITIES SUBJECT TO AVAILABILITY OF APPROPRIATIONS.

    During each of fiscal years 1998 through 2002, the Secretary of 
Agriculture shall conduct only those agricultural research, extension, 
and education activities and initiatives of the Department of 
Agriculture for which funds are specifically provided for the fiscal 
year in an appropriation Act.

                        TITLE IX--MISCELLANEOUS
     Subtitle A--Commercial Transportation of Equine for Slaughter

SEC. 901. FINDINGS.

    Because of the unique and special needs of equine being transported 
to slaughter, Congress finds that it is appropriate for the Secretary 
of Agriculture to issue guidelines for the regulation of the commercial 
transportation of equine for slaughter by persons regularly engaged in 
that activity within the United States.

SEC. 902. DEFINITIONS.

    In this subtitle:
        (1) Commercial transportation.--The term ``commercial 
    transportation'' means the regular operation for profit of a 
    transport business that uses trucks, tractors, trailers, or 
    semitrailers, or any combination thereof, propelled or drawn by 
    mechanical power on any highway or public road.
        (2) Equine for slaughter.--The term ``equine for slaughter'' 
    means any member of the Equidae family being transferred to a 
    slaughter facility, including an assembly point, feedlot, or 
    stockyard.
        (3) Person.--The term ``person''--
            (A) means any individual, partnership, corporation, or 
        cooperative association that regularly engages in the 
        commercial transportation of equine for slaughter; but
            (B) does not include any individual or other entity 
        referred to in subparagraph (A) that occasionally transports 
        equine for slaughter incidental to the principal activity of 
        the individual or other entity in production agriculture.

SEC. 903. REGULATION OF COMMERCIAL TRANSPORTATION OF EQUINE FOR 
              SLAUGHTER.

    (a) In General.--Subject to the availability of appropriations, the 
Secretary of Agriculture may issue guidelines for the regulation of the 
commercial transportation of equine for slaughter by persons regularly 
engaged in that activity within the United States.
    (b) Issues for Review.--In carrying out this section, the Secretary 
of Agriculture shall review the food, water, and rest provided to 
equine for slaughter in transit, the segregation of stallions from 
other equine during transit, and such other issues as the Secretary 
considers appropriate.
    (c) Additional Authority.--In carrying out this section, the 
Secretary of Agriculture may--
        (1) require any person to maintain such records and reports as 
    the Secretary considers necessary;
        (2) conduct such investigations and inspections as the 
    Secretary considers necessary; and
        (3) establish and enforce appropriate and effective civil 
    penalties.

SEC. 904. LIMITATION OF AUTHORITY TO EQUINE FOR SLAUGHTER.

    Nothing in this subtitle authorizes the Secretary of Agriculture to 
regulate the routine or regular transportation, to slaughter or 
elsewhere, of--
        (1) livestock other than equine; or
        (2) poultry.

SEC. 905. EFFECTIVE DATE.

    This subtitle shall become effective on the first day of the first 
month that begins 30 days or more after the date of enactment of this 
Act.

                     Subtitle B--General Provisions

SEC. 911. INTERSTATE QUARANTINE.

    The fourth sentence of section 8 of the Act of August 20, 1912 (7 
U.S.C. 161), is amended by inserting after ``Provided, That'' the 
following: ``if the Secretary of Agriculture determines under this 
section that it is necessary to quarantine a State entirely comprised 
of islands, the Secretary of Agriculture, in implementing the 
restrictions authorized under this section, shall give consideration to 
enhancing passenger movement and commerce on and between islands in the 
State: Provided further, That''.

SEC. 912. COTTON CLASSIFICATION SERVICES.

    (a) Extension of Authorization.--The first sentence of section 3a 
of the Act of March 3, 1927 (commonly known as the ``Cotton Statistics 
and Estimates Act'') (7 U.S.C. 473a), is amended by striking ``1996'' 
and inserting ``2002''.
    (b) Cotton Classing Office Locations.--Section 4 of the Act of 
March 3, 1927 (commonly known as the ``Cotton Statistics and Estimates 
Act'') (7 U.S.C. 474), is amended by adding at the end the following: 
``The Secretary of Agriculture shall maintain until at least January 1, 
1999, all cotton classing office locations in the State of Missouri 
that existed on January 1, 1996.''.

SEC. 913. PLANT VARIETY PROTECTION FOR CERTAIN TUBER PROPAGATED PLANT 
              VARIETIES.

    (a) In General.--Section 42(a)(1)(B)(i) of the Plant Variety 
Protection Act (7 U.S.C. 2402(a)(1)(B)(i)) is amended by inserting 
after ``filing'' the following: ``, except that in the case of a tuber 
propagated plant variety the Secretary may waive the 4-year limitation 
for a period ending 1 year after the date of enactment of the Federal 
Agriculture Improvement and Reform Act of 1996''.
    (b) Term of Protection.--Section 83(b) of the Plant Variety 
Protection Act (7 U.S.C. 2483(b)) is amended--
        (1) by striking ``(b) The term'' and inserting the following:
    ``(b) Term.--
        ``(1) In general.--Except as provided in paragraph (2), the 
    term'';
        (2) in the second sentence, by striking ``If the certificate'' 
    and inserting the following:
        ``(2) Exceptions.--If the certificate''; and
        (3) in paragraph (2) (as so designated), by striking ``except 
    that, in the case'' and inserting the following: ``except that--
            ``(A) in the case of a tuber propagated plant variety 
        subject to a waiver granted under section 42(a)(1)(B)(i), the 
        term of the plant variety protection shall expire 20 years 
        after the date of the original grant of the plant breeder's 
        rights to the variety outside the United States; and
            ``(B) in the case''.

SEC. 914. 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. 915. DESIGNATION OF MOUNT PLEASANT NATIONAL SCENIC AREA.

    Sections 1, 2, and 3(a)(1) of the George Washington National Forest 
Mount Pleasant Scenic Area Act (Public Law 103-314; 16 U.S.C. 545 note) 
are each amended by striking ``George Washington National Forest Mount 
Pleasant Scenic Area'' and inserting ``Mount Pleasant National Scenic 
Area''.

SEC. 916. PSEUDORABIES ERADICATION PROGRAM.

    Section 2506(d) of the Food, Agriculture, Conservation, and Trade 
Act of 1990 (21 U.S.C. 114i(d)) is amended by striking ``1995'' and 
inserting ``2002''.

SEC. 917. COLLECTION AND USE OF AGRICULTURAL QUARANTINE AND INSPECTION 
              FEES.

    Section 2509 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (21 U.S.C. 136a) is amended by striking subsection (a) and 
inserting the following:
    ``(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 is 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 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 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 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. 918. MEAT AND POULTRY INSPECTION.

    (a) Establishment of Safe Meat and Poultry Inspection Panel.--
        (1) In general.--The Federal Meat Inspection Act is amended--
            (A) by redesignating section 410 (21 U.S.C. 680) as section 
        411; and
            (B) by inserting after section 409 (21 U.S.C. 679) the 
        following:

``SEC. 410. SAFE MEAT AND POULTRY INSPECTION PANEL.

    ``(a) Establishment.--There is established in the Department of 
Agriculture a permanent advisory panel to be known as the `Safe Meat 
and Poultry Inspection Panel' (referred to in this section as the 
`panel').
    ``(b) Duties.--
        ``(1) Review and evaluation.--The panel shall review and 
    evaluate, as the panel considers necessary, the adequacy, 
    necessity, safety, cost-effectiveness, and scientific merit of--
            ``(A) inspection procedures of, and work rules and worker 
        relations involving Federal employees employed in, plants 
        inspected under this Act;
            ``(B) informal petitions or proposals for changes in 
        inspection procedures, processes, and techniques of plants 
        inspected under this Act;
            ``(C) formal changes in meat inspection regulations 
        promulgated under this Act, whether in notice, proposed, or 
        final form; and
            ``(D) such other matters as may be referred to the panel by 
        the Secretary regarding the quality or effectiveness of a safe 
        and cost-effective meat inspection system under this Act.
        ``(2) Reports.--
            ``(A) In general.--The panel shall submit to the Secretary 
        a report on the results of each review and evaluation carried 
        out under paragraph (1), including such recommendations as the 
        panel considers appropriate.
            ``(B) Reports on formal changes.--In the case of a report 
        concerning a formal change in meat inspection regulations, the 
        report shall be made within the time limits prescribed for 
        formal comments on such changes.
            ``(C) Publication in federal register.--Each report of the 
        panel to the Secretary shall be published in the Federal 
        Register.
    ``(c) Secretarial Response.--Not later than 90 days after the 
publication of a panel report under subsection (b)(2)(C), the Secretary 
shall publish in the Federal Register any response required of the 
Secretary to the report.
    ``(d) Composition of Panel.--The panel shall be composed of 7 
members, not fewer than 5 of whom shall be from the food science, meat 
science, or poultry science profession, appointed to staggered terms 
not to exceed 3 years by the Secretary from nominations received from 
the National Institutes of Health and the Federation of American 
Societies of Food Animal Science and based on the professional 
qualifications of the nominees.
    ``(e) Nominations.--
        ``(1) Initial panel.--In constituting the initial panel, the 
    Secretary shall solicit 6 nominees from the National Institutes of 
    Health and 6 nominees from the Federation of American Societies of 
    Food Animal Science for membership on the panel.
        ``(2) Vacancies.--Any subsequent vacancy on the panel shall be 
    filled by the Secretary after soliciting 2 nominees from the 
    National Institutes of Health and 2 nominees from the Federation of 
    American Societies of Food Animal Science.
        ``(3) Requirements for nominees.--
            ``(A) In general.--Each nominee provided under paragraph 
        (1) or (2) shall have a background in public health issues and 
        a scientific expertise in food, meat, or poultry science or in 
        veterinary science.
            ``(B) Submission of information.--The Secretary may require 
        nominees to submit such information as the Secretary considers 
        necessary prior to completing the selection process.
        ``(4) Additional nominees.--If any list of nominees provided 
    under paragraph (1) or (2) is unsatisfactory to the Secretary, the 
    Secretary may request the nominating entities to submit an 
    additional list of nominees.
    ``(f) Travel Expenses.--While away from the home or regular place 
of business of a member of the panel in the performance of services for 
the panel, the member shall be allowed travel expenses, 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.
    ``(g) Conflicts of Interest.--The Secretary shall promulgate 
regulations regarding conflicts of interest with respect to the members 
of the panel.
    ``(h) 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 the panel.
    ``(i) Funding.--From funds available to the Secretary to carry out 
this Act and the Poultry Products Inspection Act (21 U.S.C. 451 et 
seq.), the Secretary shall allocate such sums as may be necessary to 
carry out this section.''.
        (2) Cross reference in poultry products inspection act.--The 
    Poultry Products Inspection Act (21 U.S.C. 451 et seq.) is amended 
    by adding at the end the following:

``SEC. 30. SAFE MEAT AND POULTRY INSPECTION PANEL.

    ``(a) Review and Evaluation.--The advisory panel known as the `Safe 
Meat and Poultry Inspection Panel' established by section 410 of the 
Federal Meat Inspection Act shall review and evaluate, as the panel 
considers necessary, the adequacy, necessity, safety, cost-
effectiveness, and scientific merit of--
        ``(1) inspection procedures of, and work rules and worker 
    relations involving Federal employees employed in, plants inspected 
    under this Act;
        ``(2) informal petitions or proposals for changes in inspection 
    procedures, processes, and techniques of plants inspected under 
    this Act;
        ``(3) formal changes in poultry inspection regulations 
    promulgated under this Act, whether in notice, proposed, or final 
    form; and
        ``(4) such other matters as may be referred to the panel by the 
    Secretary regarding the quality or effectiveness of a safe and 
    cost-effective poultry inspection system under this Act.
    ``(b) Reports.--
        ``(1) In general.--The Safe Meat and Poultry Inspection Panel 
    shall submit to the Secretary a report on the results of each 
    review and evaluation carried out under paragraph (1), including 
    such recommendations as the panel considers appropriate.
        ``(2) Reports on formal changes.--In the case of a report 
    concerning a formal change in poultry inspection regulations, the 
    report shall be made within the time limits prescribed for formal 
    comments on such changes.''.
    (b) Interstate Shipment of State-Inspected Meat and Poultry.--Not 
later than 90 days after the date of enactment of this Act, the 
Secretary of Agriculture shall submit to Congress recommendations 
concerning the steps necessary to achieve interstate shipment of--
        (1) meat inspected under a State meat inspection program 
    developed and administered under section 301 of the Federal Meat 
    Inspection Act (21 U.S.C. 661); and
        (2) poultry inspected under a State poultry product inspection 
    program developed and administered under section 5 of the Poultry 
    Products Inspection Act (21 U.S.C. 454).

SEC. 919. REIMBURSABLE AGREEMENTS.

    (a) In General.--The Secretary of Agriculture (referred to in this 
section as the ``Secretary'') 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 into the United States.
    (b) Overtime, Night, and Holiday Work.--Notwithstanding any other 
provision of law, the Secretary may pay an employee of the Department 
of Agriculture performing 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.
    (c) Reimbursement.--
        (1) In general.--The Secretary 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.
        (2) Crediting of funds.--All funds collected under paragraph 
    (1) shall be credited to the account that incurs the costs and 
    shall remain available until expended without fiscal year 
    limitation.
        (3) Late payment penalty.--
            (A) In general.--On failure of a person to reimburse the 
        Secretary 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.
            (B) Crediting of funds.--Any late payment penalty and any 
        accrued interest collected under this paragraph shall be 
        credited to the account that incurs the costs and shall remain 
        available until expended without fiscal year limitation.

SEC. 920. OVERSEAS TORT CLAIMS.

    (a) In General.--The Secretary of Agriculture may pay a tort claim 
in the manner authorized by 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.
    (b) Period for Presentation of Claim.--A claim may not be allowed 
under this section unless the claim is presented in writing to the 
Secretary of Agriculture within 2 years after the date on which the 
claim accrues.
    (c) Finality.--Notwithstanding any other provision of law, an award 
or denial of a claim by the Secretary of Agriculture under this section 
is final.

SEC. 921. OPERATION OF GRADUATE SCHOOL OF DEPARTMENT OF AGRICULTURE AS 
              NONAPPROPRIATED FUND INSTRUMENTALITY.

    (a) Definitions.--In this section:
        (1) Graduate school.--The term ``Graduate School'' means the 
    Graduate School of the Department of Agriculture.
        (2) Board.--The term ``Board'' means the General Administration 
    Board of the Graduate School.
        (3) Director.--The term ``Director'' means the Director of the 
    Graduate School.
        (4) Secretary.--The term ``Secretary'' means the Secretary of 
    Agriculture.
    (b) Operation as Nonappropriated Fund Instrumentality.--On and 
after the date of enactment of this Act, the Graduate School of the 
Department of Agriculture shall continue to operate as a 
nonappropriated fund instrumentality of the United States under the 
jurisdiction of the Department of Agriculture.
    (c) Activities of Graduate School.--Under the general supervision 
of the Secretary, the Graduate School shall develop, administer, and 
provide educational, training, and professional development activities, 
including educational activities for Federal agencies, Federal 
employees, nonprofit organizations, other entities, and members of the 
general public.
    (d) Fees and Donations.--
        (1) Collection of fees.--The Graduate School may charge and 
    retain fair and reasonable fees for the activities provided by the 
    Graduate School. The amount of the fees shall be based on the cost 
    of the activities to the Graduate School.
        (2) Acceptance of donations.--
            (A) Acceptance and use authorized.--The Graduate School may 
        accept, use, hold, dispose, and administer gifts, bequests, and 
        devises of money, securities, and other real or personal 
        property made for the benefit of, or in connection with, the 
        Graduate School.
            (B) Exception.--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.
        (3) Not federal funds.--Fees collected under paragraph (1) and 
    amounts received under paragraph (2) shall not be considered to be 
    Federal funds and shall not be required to be deposited in the 
    Treasury of the United States.
    (e) General Administration Board and Director.--
        (1) Appointment as governing board.--The Secretary shall 
    appoint a General Administration Board to serve as a governing 
    board for the Graduate School and to supervise and direct the 
    activities of the Graduate School. The Board shall be subject to 
    regulation by the Secretary.
        (2) Duties of board.--The Board shall--
            (A) formulate broad policies in accordance with which the 
        Graduate School shall be administered;
            (B) take all steps necessary to ensure that the highest 
        possible educational standards are maintained by the Graduate 
        School;
            (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 
        subparagraphs (A), (B), and (C).
        (3) Appointment of director and other officers.--The Board 
    shall select a Director and such other officers as the Board 
    considers necessary to administer the Graduate School. The Director 
    and other officers shall serve on such terms and perform such 
    duties as the Board may prescribe.
        (4) Duties of director.--The Director shall be responsible, 
    subject to the supervision and direction of the Board, for carrying 
    out the functions of the Graduate School.
        (5) Borrowing and investment authority.--The Board may 
    authorize the Director--
            (A) to borrow money on the credit of the Graduate School; 
        and
            (B) to invest funds held in excess of the current operating 
        requirements of the Graduate School for purposes of maintaining 
        a reasonable reserve.
        (6) 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 their duties 
    under this section.
    (f) Employees.--Employees of the Graduate School are employees of a 
nonappropriated fund instrumentality and shall not be considered to be 
Federal employees.
    (g) Not a Federal Agency.--The Graduate School shall not be 
considered to be a Federal agency for purposes of--
        (1) the Federal Advisory Committee Act (5 U.S.C. App.);
        (2) section 552 or 552a of title 5, United States Code; or
        (3) chapter 171 of title 28, United States Code.
    (h) Acquisition and Disposal of Property.--In order to carry out 
the activities of the Graduate School, the Graduate School may--
        (1) acquire real property in the District of Columbia and in 
    other places by lease, purchase, or otherwise;
        (2) maintain, enlarge, or remodel any such property;
        (3) have sole control of any such property; and
        (4) dispose of real and personal property without regard to the 
    Federal Property and Administrative Services Act of 1949 (40 U.S.C. 
    471 et seq.).
    (i) Contract Authority.--The Graduate School may enter into 
contracts without regard to the Federal Property and Administrative 
Services Act of 1949 (40 U.S.C. 471 et seq.) or any other law that 
prescribes procedures for the procurement of property or services by an 
executive agency.
    (j) Use of Department Facilities and Resources.--The Graduate 
School may use the facilities and resources of the Department of 
Agriculture, 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 paid using funds of the Graduate School. Federal funds may not 
be used to pay the costs.

SEC. 922. STUDENT INTERNSHIP PROGRAMS.

    (a) Student Intern Subsistence Program.--
        (1) Definition of student intern.--In this subsection, the term 
    ``student intern'' means a person who--
            (A) is employed by the Department of Agriculture (referred 
        to in this section as the ``Department'') to assist scientific, 
        professional, administrative, or technical employees of the 
        Department; and
            (B) is a student in good standing at an institution of 
        higher education (as defined in section 1201 of the Higher 
        Education Act of 1965 (20 U.S.C. 1141)) pursuing a course of 
        study related to the field in which the person is employed by 
        the Department.
        (2) Payment of certain expenses by the secretary.--The 
    Secretary of Agriculture (referred to in this section as the 
    ``Secretary'') may, out of user fee funds or funds appropriated to 
    any agency of the Department, pay for lodging expenses, subsistence 
    expenses, and transportation expenses of a student intern at the 
    agency (including expenses of transportation to and from the 
    student intern's residence at or near the institution of higher 
    education attended by the student intern and the official duty 
    station at which the student intern is employed).
    (b) Cooperation With Associations of Colleges and Universities.--
        (1) Authority to cooperate.--Notwithstanding chapter 63 of 
    title 31, United States Code, the Secretary may enter into 
    cooperative agreements on an annual basis with 1 or more 
    associations of institutions of higher education (as defined in 
    section 1201 of the Higher Education Act of 1965 (20 U.S.C. 1141)) 
    for the purpose of providing for Department participation in 
    internship programs for graduate and undergraduate students who are 
    selected by the associations from students attending member 
    institutions of the associations and other institutions of higher 
    education.
        (2) Internship program.--An internship program supported under 
    this subsection (referred to in this subsection as an ``internship 
    program'') shall provide work assignments for students within the 
    Department and such other activities as the association that enters 
    into the cooperative agreement under paragraph (1) with respect to 
    the internship program (referred to in this subsection as the 
    ``cooperating association'') and the Secretary shall determine. The 
    nature of Department participation in an internship program shall 
    be developed jointly by the Secretary and the cooperating 
    association.
        (3) Program coordination.--The cooperating association shall 
    coordinate an internship program, including--
            (A) the recruitment of students;
            (B) arrangements for travel of the students to Washington, 
        District of Columbia, and to agency field locations;
            (C) the provision of housing for students, if required; and
            (D) all activities for the students that take place outside 
        the Department work assignments of the students.
        (4) Number and selection of students.--
            (A) Number.--A cooperative agreement entered into under 
        paragraph (1) shall specify the number of students that the 
        Department will host each year and a list of work assignments 
        to be provided for the students.
            (B) Selection.--The cooperating association shall provide 
        the Department with a pool of student candidates meeting the 
        requirements for each work assignment identified by the 
        Secretary. Final selection of the students for Department 
        internship positions shall be made by the Secretary.
        (5) Cost reimbursement.--From such amounts as the Secretary 
    determines are available each fiscal year for internship programs, 
    and subject to such regulations as the Secretary may issue, the 
    Secretary may reimburse a cooperating association for the 
    Department share of all direct and indirect costs of an internship 
    program, including student stipends, transportation costs to the 
    internship site, and other costs of an internship program.
        (6) Lead agency.--The Secretary may designate a lead agency 
    within the Department to carry out this subsection.
        (7) Interagency agreements.--Agencies and offices within the 
    Department other than the lead agency--
            (A) may enter into interagency agreements with the lead 
        agency to provide work assignments for students participating 
        in an internship program; and
            (B) shall reimburse the lead agency for the direct and 
        indirect costs of each student assigned to the agency under an 
        internship program.
        (8) Federal employee status.--A student who participates in an 
    internship program shall not be considered a Federal employee, 
    except for purposes of chapter 81 of title 5, and chapter 171 of 
    title 28, United States Code.

SEC. 923. CONVEYANCE OF EXCESS FEDERAL PERSONAL PROPERTY.

    Notwithstanding any other provision of law, the Secretary of 
Agriculture may--
        (1) convey title to excess Federal personal property owned by 
    the Department of Agriculture, with or without monetary 
    compensation and for such purposes as are determined by the 
    Secretary, to--
            (A) any of the 1994 Institutions (as defined in section 532 
        of the Equity in Educational Land-Grant Status Act of 1994 
        (Public Law 103-382; 7 U.S.C. 301 note));
            (B) any Hispanic-serving institution (as defined in section 
        316(b) of the Higher Education Act of 1965 (20 U.S.C. 
        1059c(b))); and
            (C) any college or university eligible to receive funds 
        under the Act of August 30, 1890 (7 U.S.C. 321 et seq.), 
        including Tuskegee University; and
        (2) acquire from, exchange with, or dispose of personal 
    property to other Federal departments and agencies without monetary 
    compensation in furtherance of the purposes of this section.

SEC. 924. 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 to the United 
    States. The release shall be 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 to the United States.
        (2) Bankhead-jones farm tenant 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 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 or successor 
    organization; 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. 925. SALE OF LAND BY THE UNIVERSITY OF ARKANSAS.

    The Act of March 2, 1887 (commonly known as the ``Hatch Act of 
1887'') (7 U.S.C. 361a et seq.) shall not apply to the sale by the 
University of Arkansas of the approximately 103.52 acres of land in 
Washington County, Arkansas, owned by the University and commonly known 
as the ``Walker Tract'', if the sale is made on the condition that all 
of the proceeds of the sale are used for agricultural research 
facilities and programs of the University of Arkansas.

SEC. 926. DESIGNATION OF DALE BUMPERS SMALL FARMS RESEARCH CENTER.

    (a) In General.--The small farms research facility of the 
Agricultural Research Service located near Booneville, Arkansas, shall 
be known and designated as the ``Dale Bumpers Small Farms Research 
Center''.
    (b) References.--Any reference in a law, map, regulation, document, 
paper, or other record of the United States to the research facility 
referred to in subsection (a) shall be deemed to be a reference to the 
``Dale Bumpers Small Farms Research Center''.

SEC. 927. DEPARTMENT OF AGRICULTURE WASHINGTON AREA STRATEGIC SPACE 
              PLAN.

    The Secretary of Agriculture may obligate not more than $5,000,000, 
from funds appropriated for agriculture buildings and facilities and 
rental payments, for the improvement of State and local roads relating 
to the construction of an office complex at the Beltsville Agriculture 
Research Center, Maryland, as part of the implementation of the 
Department of Agriculture Washington Area Strategic Space Plan.

SEC. 928. SEVERABILITY.

    If any provision of this Act or the application thereof to any 
person or circumstance is held invalid, the invalidity shall not affect 
other provisions or applications of this Act that can be given effect 
without regard to the invalid provision or application, and to this end 
the provisions of this Act are severable.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.