[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.