[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2973 Introduced in House (IH)]







104th CONGRESS
  2d Session
                                H. R. 2973

  To reform and extend Department of Agriculture programs related to 
agricultural credit, rural development, conservation, trade, research, 
               and promotion of agricultural commodities.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 27, 1996

 Mr. Roberts (for himself, Mr. Emerson, Mr. Gunderson, Mr. Allard, Mr. 
 Barrett of Nebraska, Mr. Ewing, and Mr. Smith of Michigan) introduced 
the following bill; which was referred to the Committee on Agriculture, 
and in addition to the Committees on Ways and Means, and International 
 Relations, for a period to be subsequently determined by the Speaker, 
 in each case for consideration of such provisions as fall within the 
                jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
  To reform and extend Department of Agriculture programs related to 
agricultural credit, rural development, conservation, trade, research, 
               and promotion of agricultural commodities.

    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 ``Agricultural 
Regulatory Relief and Trade 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 CREDIT

 Subtitle A--Amendments to the Consolidated Farm and Rural Development 
                                  Act

Sec. 101. References.
Sec. 102. Redirection of resources to family farmers.
Sec. 103. Redirection of resources to income-producing activities.
Sec. 104. Improvement of loan portfolio management.
Sec. 105. Assuring prompt repayment of loans.
Sec. 106. Modification of programs for beginning farmers.
Sec. 107. Elimination of target participation rates.
Sec. 108. Miscellaneous and conforming amendments.
         Subtitle B--Amendments to the Farm Credit Act of 1971

Sec. 151. References.
Sec. 152. Repeal of requirements relating to review of decisions to 
                            deny or reduce the amount of a loan.
Sec. 153. Prohibition against restructuring of restructured loans or 
                            loans involved in bankruptcy proceedings.
Sec. 154. Repeal of rules governing effect of restructuring on borrower 
                            stock.
Sec. 155. Repeal of rules governing review of restructuring denials.
Sec. 156. Elimination of certain requirements relating to loans placed 
                            in nonaccrual status.
Sec. 157. Limitations on the right of first refusal.
                      TITLE II--RURAL DEVELOPMENT

Sec. 201. Capitalization grants to States for rural development.
Sec. 202. Elimination of other rural development programs.
Sec. 203. Conforming amendments.
Sec. 204. Savings provision.
Sec. 205. Effective date.
                        TITLE III--CONSERVATION

Sec. 300. Short title.
Subtitle A--Consolidation of Conservation Financial Assistance Programs 
                    of the Department of Agriculture

Sec. 301. Purpose of subtitle.
          Part 1--Agricultural Conservation Assistance Program

Sec. 311. Definitions.
Sec. 312. Provision of technical and financial assistance for eligible 
                            practices to conserve and improve soil, 
                            water, and related natural resources.
Sec. 313. Cost-share plans.
Sec. 314. Financial assistance under contract.
Sec. 315. Termination of contracts.
Sec. 316. Authorization of appropriations.
                     Part 2--Conforming Amendments

Sec. 321. Repeal of Great Plains conservation program.
Sec. 322. Repeal of critical lands resource conservation program in 
                            Great Plains area.
Sec. 323. Repeal of agricultural conservation program.
Sec. 324. Modification of Department involvement in Colorado River 
                            basin salinity control program.
Sec. 325. Repeal of rural environmental conservation program.
Sec. 326. Repeal of water quality incentive projects.
Sec. 327. Repeal of tree planting initiative.
Sec. 328. Repeal of integrated farm management program option.
Sec. 329. Repeal of special areas conservation program and reservoir 
                            sedimentation program.
Sec. 330. Repeal of small watershed easement purchase authority.
Sec. 331. Repeal of financial assistance programs under Cooperative 
                            Forestry Assistance Act of 1978.
Sec. 332. Repeal of Water Bank Act.
Sec. 333. Effective date of repeals.
Subtitle B--Water Quality Conservation Program for Livestock Operations

Sec. 341. Purpose of subtitle and definitions.
Sec. 342. Provision of technical and financial assistance for water 
                            quality conservation for livestock 
                            operations.
Sec. 343. Assistance under contract.
Sec. 344. Priorities in evaluation of contract offers.
Sec. 345. Water quality plans.
Sec. 346. Modification and termination of contracts.
Sec. 347. Use of funds of Commodity Credit Corporation.
Sec. 348. Regulations.
           Subtitle C--Highly Erodible Cropland Conservation

Sec. 351. Definitions applicable to highly erodible cropland 
                            conservation.
Sec. 352. Development and implementation of conservation plans and 
                            conservation systems.
Sec. 353. Expedited procedures for granting variances from conservation 
                            plans.
Sec. 354. Good faith exemption.
Sec. 355. Conservation reserve lands.
Sec. 356. Investigation of possible compliance deficiencies.
Sec. 357. Expiration of authority.
     Subtitle D--Environmental Conservation Acreage Reserve Program

Sec. 361. Wetlands reserve program.
Sec. 362. Elimination of consultation requirements with Secretary of 
                            the Interior.
Sec. 363. Repeal of environmental easement program.
Sec. 364. Effect of amendments on existing easements.
Sec. 365. Conservation reserve program.
                Subtitle E--Wetland Conservation Reform

Sec. 371. Restatement of program ineligibility.
Sec. 372. Delineation of wetlands; exemptions to program ineligibility.
Sec. 373. Repeal of consultation requirement with Secretary of the 
                            Interior.
Sec. 374. Application of program ineligibility to affiliated persons.
                      TITLE IV--AGRICULTURAL TRADE

               Subtitle A--Public Law 480 and Related Law

Sec. 401. Food assistance to developing countries.
Sec. 402. Trade and development assistance.
Sec. 403. Agreements regarding eligible countries and private entities.
Sec. 404. Terms and conditions of sales.
Sec. 405. Use of local currency.
Sec. 406. Provision of agricultural commodities.
Sec. 407. Effective use of commodities.
Sec. 408. Monetization.
Sec. 409. General levels of assistance under Public Law 480.
Sec. 410. Use of value added commodities.
Sec. 411. Food aid consultation group.
Sec. 412. Food for development.
Sec. 413. Commodity determinations.
Sec. 414. General provisions.
Sec. 415. Agreements.
Sec. 416. Administrative provisions.
Sec. 417. Expiration date.
Sec. 418. Repeal of sections 409 and 410.
Sec. 419. Use of local currency in title V.
Sec. 420. Title V funding level.
Sec. 421. Food for progress.
Sec. 422. Food security commodity reserve.
               Subtitle B--Agricultural Trade Act of 1978

Sec. 431. Agricultural export promotion strategy.
Sec. 432. Export credits.
Sec. 433. Regulations.
Sec. 434. Agricultural embargo protection.
Sec. 435. Foreign Agricultural Service.
                       Subtitle C--Miscellaneous

Sec. 441. Triggered export enhancement.
Sec. 442. Policy on expansion of international markets.
Sec. 443. Policy on maintenance and development of export markets.
Sec. 444. Policy on unfair trade practices.
Sec. 445. Agricultural aid and trade unions.
Sec. 446. Annual reports by agricultural attaches.
Sec. 447. Orderly liquidation of stocks.
Sec. 448. Regulations.
Sec. 449. Emerging markets.
Sec. 450. Import assistance for CBI beneficiary countries and the 
                            Philippines.
Sec. 451. Studies, reports, and other provisions.
Sec. 452. Monitoring compliance with Uruguay Round Agreements.
Sec. 453. Limitation on durum wheat export subsidies.
Sec. 454. Market promotion program.
Sec. 455. Export enhancement program.
Sec. 456. Monitoring compliance with sanitary and phytosanitary 
                            measures.
Sec. 457. Agricultural trade program flexibility.
Sec. 458. Sunflower seed oil and cottonseed oil export sales.
Sec. 459. Foreign market development cooperator program.
                   Subtitle D--Dairy Export Programs

Sec. 461. Authority to assist in establishment and maintenance of 
                            export trading company.
Sec. 462. Standby authority to designate entity to provide 
                            international market development and export 
                            services.
Sec. 463. Assurance of equitable treatment, fair dealing and protection 
                            from discriminatory practices for U.S. 
                            participants in the world market for dairy 
                            products.
Sec. 464. Study and report regarding potential impact of Uruguay Round 
                            on prices, income and government purchases.
               TITLE V--EXTENSION OF RESEARCH AUTHORITIES

Sec. 501. Extension of national genetic resources program.
Sec. 502. Extension of national agricultural weather information 
                            system.
Sec. 503. Extension of research program regarding production, 
                            preparation, processing, handling, and 
                            storage of agricultural products.
Sec. 504. Extension of water quality research, education, and 
                            coordination.
Sec. 505. Extension of livestock product safety and inspection program.
Sec. 506. Extension of mesquite research program.
Sec. 507. Extension of prickly pear research program.
Sec. 508. Extension of deer tick ecology and related research program.
Sec. 509. Extension of agricultural telecommunications program.
Sec. 510. Extension of national centers for agricultural product 
                            quality research.
Sec. 511. Extension of pilot to coordinate food and nutrition education 
                            programs.
Sec. 512. Extension of assistive technology program for farmers with 
                            disabilities.
Sec. 513. Extension of national rural information center clearinghouse.
Sec. 514. Extension of Indian subsistence farming demonstration grant 
                            program.
Sec. 515. Extension of Joint Council on Food and Agricultural Sciences.
Sec. 516. Extension of National Agricultural Research and Extension 
                            Users Advisory Board.
Sec. 517. Extension or program of grants and fellowships for food and 
                            agricultural sciences education.
Sec. 518. Extension of grant program for research on the production and 
                            marketing of alcohols and industrial 
                            hydrocarbons from agricultural commodities 
                            and forest products.
Sec. 519. Extension of Food Science and Nutrition Research Center.
Sec. 520. Extension of nutrition education program.
Sec. 521. Extension of Animal Health Science Research Advisory Board.
Sec. 522. Extension of animal health and disease research programs.
Sec. 523. Extension of research on national or regional animal health 
                            or disease problems.
Sec. 524. Extension of resident instruction program at 1890 land-grant 
                            colleges.
Sec. 525. Extension of grant program to upgrade agricultural and food 
                            sciences facilities at 1890 land-grant 
                            colleges.
Sec. 526. Extension of national research and training centennial 
                            centers.
Sec. 527. Extension of miscellaneous research programs.
Sec. 528. Extension of extension education program.
Sec. 529. Extension of research and pilot project for the development 
                            of supplemental and alternative crops.
Sec. 530. Extension of aquaculture assistance programs.
Sec. 531. Extension of rangeland research program.
Sec. 532. Extension of dairy goat research program.
Sec. 533. Extension of construction program for Federal agricultural 
                            research facilities.
Sec. 534. Extension of the Competitive, Special, and Facilities 
                            Research Grant Act.
Sec. 535. Extension of the Research Facilities Act.
Sec. 536. Extension of critical agricultural materials research.
Sec. 537. Extension of pseudorabies eradication program.
 TITLE VI--ISSUANCE OF ORDERS FOR PROMOTION, RESEARCH, AND INFORMATION 
             ACTIVITIES REGARDING AGRICULTURAL COMMODITIES

Sec. 601. Short title.
Sec. 602. Findings and purpose.
Sec. 603. Definitions.
Sec. 604. Issuance of orders.
Sec. 605. Required terms in orders.
Sec. 606. Permissive terms in orders.
Sec. 607. Assessments.
Sec. 608. Petition and review of orders.
Sec. 609. Enforcement.
Sec. 610. Investigations and power to subpoena.
Sec. 611. Referenda.
Sec. 612. Suspension or termination.
Sec. 613. Amendments to orders.
Sec. 614. Effect on other laws.
Sec. 615. Regulations.
Sec. 616. Authorization of appropriations.
                  TITLE VII--MISCELLANEOUS PROVISIONS

              Subtitle A--General Conservation Provisions

Sec. 701. Clarification of effect of resource planning on allocation or 
                            use of water.
Sec. 702. Payment of filing fees by United States in connection with 
                            water rights adjudications.
Sec. 703. Provision of technical assistance to State foresters.
Sec. 704. Repeal of State technical committees.
Sec. 705. Repeal of composting research and extension program.
Sec. 706. Repeal of Farms for the Future Act of 1990.
Sec. 707. Administration of environmental programs.
Sec. 708. Private grazing lands conservation assistance.
                         Subtitle B--Inspection

Sec. 721. Federal and State cooperation under Federal Meat Inspection 
                            Act.
Sec. 722. Federal and State cooperation under Poultry Products 
                            Inspection Act.
Sec. 723. Establishment of Safe Meat and Poultry Inspection Panel.

                      TITLE I--AGRICULTURAL CREDIT

 Subtitle A--Amendments to the Consolidated Farm and Rural Development 
                                  Act

SEC. 101. REFERENCES.

    Except as otherwise expressly provided, wherever in this subtitle 
an amendment or repeal is expressed in terms of an amendment to, or 
repeal of, a section or other provision, the reference shall be 
considered to be made to a section or other provision of the 
Consolidated Farm and Rural Development Act.

SEC. 102. REDIRECTION OF RESOURCES TO FAMILY FARMERS.

    (a) Ownership Loans.--
            (1) Targeting to family farmers.--
                    (A) In general.--Section 302(a) (7 U.S.C. 1922(a)) 
                is amended to read as follows:
    ``(a)(1) The Secretary may make loans under this subtitle to any 
eligible applicant for such a loan.
    ``(2) For purposes of paragraph (1), an individual who has applied 
for a loan under this subtitle is an eligible applicant if the 
individual--
            ``(A) is a citizen of the United States;
            ``(B) has training or farming experience that the Secretary 
        determines is sufficient to assure reasonable prospects of 
        success in the proposed farming operation;
            ``(C) is or will become an owner-operator of a not larger 
        than family farm in the United States; and
            ``(D) is unable to obtain sufficient credit elsewhere to 
        finance the needs of the individual relating to the proposed 
        farming operation at reasonable rates and terms, taking into 
        consideration prevailing private and cooperative rates and 
        terms in the community in or near which the individual resides 
        for loans for similar purposes and periods of time.
    ``(3) For purposes of paragraph (1), a person (other than an 
individual) who has applied for a loan under this subtitle is an 
eligible applicant if--
            ``(A) the person--
                    ``(i) is controlled by farmers and ranchers;
                    ``(ii) is engaged primarily and directly in farming 
                or ranching in the United States;
                    ``(iii) is or will become an owner-operator of a 
                not larger than family farm; and
                    ``(iv) is unable to obtain sufficient credit 
                elsewhere to finance the needs of the person relating 
                to the proposed farming operation at reasonable rates 
                and terms, taking into consideration prevailing private 
                and cooperative rates and terms in the community in or 
                near which the person is located for loans for similar 
                purposes and periods of time; and
            ``(B) each individual who has greater than a 15 percent 
        ownership interest in the person meets the requirements of 
        paragraph (2).
    ``(4) As used in this subsection, the term `person' means an 
individual, a corporation, a partnership, a joint venture, or any 
combination thereof.''.
                    (B) Conforming amendments.--
                            (i) Section 304(b) (7 U.S.C. 1924(b)) is 
                        amended by striking ``clauses (2) and (3) of 
                        section 302'' and inserting ``subparagraphs (B) 
                        and (C) of section 302(a)(2)''.
                            (ii) Section 310D(a) (7 U.S.C. 1934(a)) is 
                        amended by striking ``paragraphs (2) through 
                        (4) of section 302'' and inserting 
                        ``subparagraphs (B), (C), and (D) of section 
                        302(a)(2)''.
                            (iii) Section 359(c)(2) (7 U.S.C. 
                        2006a(c)(2)) is amended by striking 
                        ``302(a)(2)'' and inserting ``302(a)(2)(B)''.
            (2) Elimination of loans for recreational uses and 
        facilities.--
                    (A) In general.--Section 303(a) (7 U.S.C. 1923(a)) 
                is amended by striking clause (2) and redesignating 
                clauses (3), (4), and (5) as clauses (2), (3), and (4), 
                respectively.
                    (B) Conforming amendments.--Section 307(a)(6)(B) (7 
                U.S.C. 1927(a)(6)(B)) is amended in each of clauses (i) 
                and (vii) by striking ``clauses (2) and (3) of section 
                303(a)'' and inserting ``section 303(a)(2)''.
            (3) Refinancing limited to loans related to farm 
        operations.--Section 303(a)(3) (7 U.S.C. 1923(a)(3)), as so 
        redesignated by paragraph (2)(A) of this subsection, is amended 
        by inserting ``with respect to farming, ranching, or 
        aquaculture operations if such refinancing enhances 
        significantly the likelihood of repayment of such 
        indebtedness'' before the comma.
    (b) Operating Loans.--
            (1) Targeting to family farmers.--
                    (A) In general.--Section 311(a) (7 U.S.C. 1941(a)) 
                is amended to read as follows:
    ``(a)(1) The Secretary may make loans under this subtitle to any 
eligible applicant for such a loan.
    ``(2) For purposes of paragraph (1), an individual who has applied 
for a loan under this subtitle is an eligible applicant if the 
individual--
            ``(A) is a citizen of the United States;
            ``(B) has training or farming experience that the Secretary 
        determines is sufficient to assure reasonable prospects of 
        success in the proposed farming operation;
            ``(C) is or will become an operator of a not larger than 
        family farm in the United States; and
            ``(D) is unable to obtain sufficient credit elsewhere to 
        finance the needs of the individual relating to the farming 
        operation at reasonable rates and terms, taking into 
        consideration prevailing private and cooperative rates and 
        terms in the community in or near which the individual resides 
        for loans for similar purposes and periods of time.
    ``(3) For purposes of paragraph (1), a person (other than an 
individual) who has applied for a loan under this subtitle is an 
eligible applicant if--
            ``(A) the person--
                    ``(i) is controlled by farmers and ranchers;
                    ``(ii) is engaged primarily and directly in farming 
                or ranching in the United States;
                    ``(iii) is or will become an operator of a not 
                larger than family farm; and
                    ``(iv) is unable to obtain sufficient credit 
                elsewhere to finance the needs of the person relating 
                to the proposed farming operation at reasonable rates 
                and terms, taking into consideration prevailing private 
                and cooperative rates and terms in the community in or 
                near which the person is located for loans for similar 
                purposes and periods of time; and
            ``(B) each individual who has greater than a 15 percent 
        ownership interest in the person meets the requirements of 
        paragraph (2).
    ``(4) As used in this subsection, the term `person' means an 
individual, a corporation, a partnership, a joint venture, or any 
combination thereof.''.
                    (B) Conforming amendments.--
                            (i) Section 312(a)(5) (7 U.S.C. 1924(a)(5)) 
                        is amended by striking ``section 311 (2) and 
                        (3)'' and inserting ``subparagraphs (B) and (C) 
                        of section 311(a)(2)''.
                            (ii) Section 312(b) (7 U.S.C. 1924(b)) is 
                        amended by striking ``clauses (2) and (3) of 
                        section 311(a)'' and inserting ``subparagraphs 
                        (B) and (C) of section 311(a)(2)''.
                            (iii) Section 359(c)(2) (7 U.S.C. 
                        2006a(c)(2)) is amended by striking 
                        ``311(a)(2)'' and inserting ``311(a)(2)(B)''.
            (2) Refinancing limited to loans related to farm 
        operations.--Section 312(a)(7) (7 U.S.C. 1942(a)(7)) is amended 
        by inserting ``with respect to farming, ranching, or 
        aquaculture operations if such refinancing enhances 
        significantly the likelihood of repayment of such 
        indebtedness'' before the comma.
            (3) Elimination of loans for osha compliance.--Section 
        312(a) (7 U.S.C. 1942(a)) is amended by striking clause (10) 
        and redesignating clauses (11), (12), and (13) as clauses (10), 
        (11), and (12), respectively.
    (c) Emergency Loans.--
            (1) Targeting to family farmers.--Section 321(a) (7 U.S.C. 
        1961(a)) is amended to read as follows:
    ``(a)(1) The Secretary shall make loans under this subtitle to any 
eligible applicant for such a loan.
    ``(2) For purposes of paragraph (1), an individual who has applied 
for a loan under this subtitle is an eligible applicant if--
            ``(A) the individual--
                    ``(i) is a citizen of the United States;
                    ``(ii) has training or farming experience that the 
                Secretary determines is sufficient to assure reasonable 
                prospects of success in the proposed farming operation;
                    ``(iii) is or will become an operator of a not 
                larger than family farm in the United States; and
                    ``(iv) is unable to obtain sufficient credit 
                elsewhere to finance the needs of the individual 
                relating to the proposed farming operation at 
                reasonable rates and terms, taking into consideration 
                prevailing private and cooperative rates and terms in 
                the community in or near which the individual resides 
                for loans for similar purposes and periods of time; and
            ``(B) the Secretary finds that the farming, ranching, or 
        aquaculture operations of the individual have been 
        substantially affected by--
                    ``(i) a natural disaster in the United States; or
                    ``(ii) a major disaster or emergency designated by 
                the President under the Disaster Relief and Emergency 
                Assistance Act.
    ``(3) For purposes of paragraph (1), a person (other than an 
individual) who has applied for a loan under this subtitle is an 
eligible applicant if--
            ``(A) the person--
                    ``(i) is controlled by farmers or ranchers;
                    ``(ii) is primarily engaged in farming, ranching, 
                or aquaculture in the United States;
                    ``(iii) is or will become an operator of a not 
                larger than family farm in the United States; and
                    ``(iv) is unable to obtain sufficient credit 
                elsewhere to finance the needs of the person relating 
                to the proposed farming operation at reasonable rates 
                and terms, taking into consideration prevailing private 
                and cooperative rates and terms in the community in or 
                near which the person is located for loans for similar 
                purposes and periods of time;
            ``(B) each individual who has greater than a 15 percent 
        ownership interest in the person meets the requirements of 
        paragraph (2)(A); and
            ``(C) the Secretary finds that the farming, ranching, or 
        aquaculture operations of the person have been substantially 
        affected by--
                    ``(i) a natural disaster in the United States; or
                    ``(ii) a major disaster or emergency designated by 
                the President under the Disaster Relief and Emergency 
                Assistance Act.
    ``(4)(A) The Secretary shall accept applications from, and make 
loans pursuant to this subtitle to, applicants otherwise eligible for 
such a loan, that conduct farming, ranching, or aquaculture operations 
in any county contiguous to a county where the Secretary has found that 
farming, ranching, or aquaculture operations have been substantially 
affected by--
            ``(i) a natural disaster in the United States; or
            ``(ii) a major disaster or emergency designated by the 
        President under the Disaster Relief and Emergency Assistance 
        Act.
    ``(B) The Secretary shall accept applications for assistance under 
this subtitle from applicants affected by a natural disaster at any 
time during the 8-month period beginning on--
            ``(i) the date on which the Secretary determines that 
        farming, ranching, or aquaculture operations have been 
        substantially affected by the natural disaster; or
            ``(ii) the date on which the President makes the major 
        disaster or emergency designation with respect to the natural 
        disaster.
    ``(5) The authority provided by this subsection shall be effective 
only to the extent or in such amounts as are provided in advance in 
appropriations Acts.
    ``(6) As used in this subsection, the term `person' means an 
individual, a corporation, a partnership, a joint venture, or any 
combination thereof.''.
            (2) Conforming amendment.--Section 329 (7 U.S.C. 1970) is 
        amended by striking ``a single enterprise which constitutes a 
        basic part of''.

SEC. 103. REDIRECTION OF RESOURCES TO INCOME-PRODUCING ACTIVITIES.

    (a) Elimination of Ownership Loans for the Acquisition, 
Installation, or Modification of Qualified Non-Fossil Energy Systems.--
            (1) In general.--Section 303 (7 U.S.C. 1923) is amended--
                    (A) by striking ``(a)''; and
                    (B) by striking subsection (b).
            (2) Conforming amendments.--Section 307(a)(6)(B) (7 U.S.C. 
        1927(a)(6)(B)), as amended by section 102(a)(2)(B) of this Act, 
        is amended in each of clauses (i) and (vii) by striking 
        ``section 303(a)(2)'' and inserting ``section 303(2)''.
    (b) Eliminating of Ownership Loans for the Construction of 
Conservation Structures or Non-Income-Producing Conservation 
Practices.--Section 304 (7 U.S.C. 1924) is amended--
            (1) by striking subsection (a) and inserting:
    ``(a)(1) Loans may be made to farm owners or tenants who are 
eligible borrowers under this subtitle for--
            ``(A) the establishment of forest cover for sustained yield 
        timber management;
            ``(B) the establishment or improvement of permanent 
        pasture; or
            ``(C) the construction or improvement of environmental 
        structures or systems required by Federal or State statute.
    ``(2) The Secretary shall not make a loan under this section that 
exceeds the lesser of--
            ``(A) the value of the farm or other security for such 
        loan; or
            ``(B) $50,000.''; and
            (2) by striking subsection (c).
    (c) Elimination of Operating Loans for the Development and 
Construction of Solar Energy Systems.--Section 312(a) (7 U.S.C. 
1942(a)), as amended by section 102(b)(3) of this Act, is amended--
            (1) by striking clause (10) and redesignating clauses (11) 
        and (12) as clauses (10) and (11), respectively; and
            (2) by striking the 2nd sentence.
    (d) Elimination of Authority To Acquire Easements for Conservation, 
Recreational, or Wildlife Purposes.--Section 349 (7 U.S.C. 1997) is 
repealed.
    (e) Elimination of Authority To Transfer Certain Inventory Lands.--
Section 354 (7 U.S.C. 2002) is repealed.
    (f) Conforming Amendments.--Section 335 (7 U.S.C. 1985) is 
amended--
            (1) in subsection (c)(1)--
                    (A) by striking ``, other than easements acquired 
                under section 349''; and
                    (B) by striking the last sentence and inserting 
                ``Notwithstanding the preceding sentence, the Secretary 
                may sell an easement, restriction, development rights, 
                or the equivalent thereof, to a unit of local or State 
                government or a private nonprofit organization for 
                conservation purposes at its fair market value.'';
            (2) in subsection (e)(7), by striking ``sale or''; and
            (3) by striking subsection (g).

SEC. 104. IMPROVEMENT OF LOAN PORTFOLIO MANAGEMENT.

    (a) Expansion of Authority To Require Additional Collateral To 
Secure a Farmer Program Loan.--Section 307(e)(1) (7 U.S.C. 1927(e)(1)) 
is amended by striking ``, if the borrower is current in the payment of 
principal and interest on the loan'' and inserting ``unless the fair 
market value of the collateral securing the loan is less than 80 
percent of the total of the principal and any unpaid accrued interest 
on the loan''.
    (b) Linking of Emergency Loans for Crop or Livestock Changes to 
Natural Disasters.--Section 323 (7 U.S.C. 1963) is amended by inserting 
``which are necessitated by a natural disaster, major disaster, or 
emergency and which are'' after ``livestock changes''.
    (c) Establishment of Date Certain for Emergency Loan Asset 
Valuation.--Section 324(d) (7 U.S.C. 1962(d)) is amended in the last 
sentence by striking all that follows ``shall'' and inserting 
``establish the value of the assets as of the day before the occurrence 
of the natural disaster, major disaster, or emergency which gave rise 
to the request for assistance under this subtitle or under the Disaster 
Relief and Emergency Assistance Act.''.
    (d) Creation of Measurable Standard for Deferral of Loan Principal 
and Foregoing Foreclosure.--Section 331A (7 U.S.C. 1981a) is amended to 
read as follows:

``SEC. 331A. ADDITIONAL AUTHORITY TO DEFER PRINCIPAL PAYMENTS AND 
              FOREGO FORECLOSURE.

    ``In addition to any other authority that the Secretary may have to 
defer principal and forego foreclosure, the Secretary may, at the 
request of the borrower, permit the deferral of principal only on any 
outstanding loan made, insured, or held by the Secretary under this 
title or under any other law administered by the Consolidated Farm 
Services Agency, and may forego foreclosure on any such loan for such 
period as the Secretary deems necessary, upon a showing by the borrower 
that--
            ``(1) due to circumstances beyond the borrower's control 
        that could not have been anticipated by the borrower, the 
        borrower is temporarily unable to continue making payments of 
        such principal when due without using funds needed to provide 
        for the basic family needs of the borrower and the immediate 
        family of the borrower; and
            ``(2) the borrower has the ability to continue making a 
        portion of the interest payments on such loan when due 
        throughout the anticipated deferral period.''.
    (e) Simplification of Notice to be Provided to Delinquent 
Borrowers.--Section 331D (7 U.S.C. 1981d) is amended--
            (1) in subsection (a), by striking ``180 days delinquent'' 
        and inserting ``30 days past due''; and
            (2) by striking subsections (b), (c), (d), and (e) and 
        inserting the following:
    ``(b) Contents.--The notice required under subsection (a) shall 
inform the borrower of--
            ``(1) appeal rights;
            ``(2) available restructuring options under this title; and
            ``(3) the consequences of continued delinquency.''.
    (f) Providing an Annual Review of the Credit History, Business 
Operation and Continued Eligibility of a Borrower.--
            (1) In general.--Section 333 (7 U.S.C. 1983) is amended by 
        redesignating paragraphs (2), (3), and (4) as paragraphs (3), 
        (4), and (5), respectively, and by inserting after paragraph 
        (1) the following:
            ``(2) the county or area committee, as appropriate, under 
        section 8(b) of the Soil Conservation and Domestic Allotment 
        Act (16 U.S.C. 590h(b)) to certify in writing that it has 
        performed an annual review of the credit history and business 
        operation of a borrower (other than a borrower under section 
        306, 310B, or 314), and its opinion as to the continued 
        eligibility of that borrower for such a loan;''.
            (2) Conforming amendment.--Section 310B(a) (7 U.S.C. 
        1932(a)) is amended in the 3rd sentence by striking ``(3)'' and 
        inserting ``(4)''.
    (g) Elimination of the Sales Restrictions on Inventory Property.--
            (1) In general.--Section 335 (7 U.S.C. 1985), as amended by 
        sections 103(f)(2) and 108(f)(33) of this Act, is amended--
                    (A) in subsection (b), by striking ``Except as 
                provided in subsection (e), real'' and inserting 
                ``Real'';
                    (B) in subsection (c)--
                            (i) by striking ``(1) Except as provided in 
                        subsection (e), the'' and inserting ``The'';
                            (ii) by striking the 2nd sentence; and
                            (iii) by striking paragraph (2); and
                    (C) by striking subsections (e) and (f).
            (2) Conforming amendments.--
                    (A) Section 602(5) of the Agricultural Act of 1949 
                (7 U.S.C. 1471(5)) is amended by inserting ``(as in 
                effect before the date of the enactment of the 
                Agricultural Regulatory Relief and Trade Act of 1996)'' 
                before the last close parenthesis.
                    (B) Section 343(b) (7 U.S.C. 1991(b)) is amended by 
                striking ``335 (e) and (f),''.
    (h) Elimination of Debt Restructuring and Loan Servicing.--
            (1) General provisions.--Section 353 (7 U.S.C. 2001) is 
        repealed.
            (2) Provisions applicable to community facility loans.--
        Section 353A (7 U.S.C. 2001a) is repealed.
            (3) Conforming amendments.--
                    (A) Section 343(b) (7 U.S.C. 1991(b)) is amended by 
                striking ``353,''.
                    (B) Section 357(b) (7 U.S.C. 2005(b)) is amended by 
                striking paragraph (3).
    (i) Short Form Certification of Program Compliance.--Subtitle D (7 
U.S.C. 1981-2008f) is amended by adding at the end the following:

``SEC. 372. 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 and 
all applicable statutes and regulations which serve as eligibility 
prerequisites for loans made under this title.''.
    (j) Effect of Prior Default, Deferral, Debt Restructuring, or Loan 
Servicing on Eligibility for Loans.--Subtitle D (7 U.S.C. 1981-2008f), 
as amended by subsection (i) of this section, is amended by adding at 
the end the following:

``SEC. 373. EFFECT OF PRIOR DEFAULT, DEFERRAL, DEBT RESTRUCTURING, OR 
              LOAN SERVICING ON ELIGIBILITY FOR LOANS.

    ``Notwithstanding any other section of this title, the Secretary 
shall not make any loan under this title to an applicant if the 
applicant (or, in the case of a legal entity which is an applicant, an 
individual who has greater than a 15 percent ownership interest in the 
applicant) has defaulted on a loan made or insured under this title, 
had the principal or interest on a loan made or insured under this 
title deferred under section 331A, or had a loan made or insured under 
this title restructured or serviced under section 353, unless the 
default, deferral, restructuring, or servicing resulted from 
circumstances that were beyond the control of the applicant or 
individual, and that could not have been reasonably anticipated by the 
applicant or individual.''.

SEC. 105. ASSURING PROMPT REPAYMENT OF LOANS.

    (a) Narrowing of Use of Nonsupervised Bank Accounts.--Section 
312(e) (7 U.S.C. 1942(e)) is amended to read as follows:
    ``(e)(1) Notwithstanding any other provision of this title, the 
Secretary shall reserve a portion of any loan made under this subtitle 
to be placed in a nonsupervised bank account which 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) The size of any such reserve shall be limited to 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) Reduction of the Limit on Emergency Loans.--Section 324(a) (7 
U.S.C. 1964(a)) is amended by striking ``$500,000'' and inserting 
``$300,000''.
    (c) Narrowing of Authority To Waive Application of the Credit 
Elsewhere Test.--Section 322(b) (7 U.S.C. 1962(b)) is amended in the 
2nd proviso by striking ``$300,000'' and inserting ``$10,000''.

SEC. 106. MODIFICATION OF PROGRAMS FOR BEGINNING FARMERS.

    (a) Establishment of Loan Guarantee Program.--Section 309(h)(1) (7 
U.S.C. 1929(a)(1)) is amended by adding at the end the following: ``In 
the case of a loan made to a beginning farmer (as defined by the 
Secretary in regulations), the guarantee shall be for the payment of 98 
percent of loan principal and interest.''.
    (b) Enhancement of Interest Rate Buydown Program.--Section 351(c) 
(7 U.S.C. 1999(c)) is amended by inserting ``(or 6 percent, in the case 
of a loan made to a beginning farmer, as defined by the Secretary)'' 
before the period.
    (c) Elimination of Down Payment Loan Program.--Section 310E (7 
U.S.C. 1935) is repealed.
    (d) Elimination of Limitations on the Availability of Farm 
Ownership Loans and Loan Guarantees.--Section 310F (7 U.S.C. 1936) is 
repealed.
    (e) Simplification of Special Assistance Program.--Section 318 (7 
U.S.C. 1948) is amended to read as follows:

``SEC. 318. SPECIAL ASSISTANCE TO CERTAIN QUALIFIED BEGINNING FARMERS 
              AND RANCHERS.

    ``(a) In General.--The Secretary shall provide special assistance 
in accordance with this section to enable certain qualified beginning 
farmers or ranchers to conduct viable farming or ranching operations.
    ``(b) Application.--A qualified beginning farmer or rancher may 
apply for special assistance under this section by submitting to the 
Secretary an application which contains--
            ``(1) a plan for special assistance which describes how 
        assistance provided under this section will be used in 
        conducting a farming or ranching operation; and
            ``(2) such other information as may be required by the 
        Secretary.
    ``(c) Determinations by the County Committee; Approval of Plan.--
The county committee shall approve a plan for special assistance 
submitted by an applicant pursuant to subsection (b) if the county 
committee determines that--
            ``(1) the applicant has not operated a farm or ranch, or 
        has operated a farm or ranch for not more than 5 years;
            ``(2) the applicant owns, leases, or has a commitment to 
        have leased to the applicant the site or sites of the 
        operation; and
            ``(3) there is, or will be, available to the applicant 
        equipment sufficient to conduct the operation in accordance 
        with the plan.
    ``(d) Determination by the Secretary; Approval of Application for 
Assistance.--Except as provided in subsection (f)(2), the Secretary 
shall approve an application submitted pursuant to subsection (b) for 
an operation described in a plan approved by a county committee under 
this section if the Secretary determines that during the commitment 
period established in accordance with subsection (e)(1), the operation 
will be financially viable, as determined by the Secretary.
    ``(e) Provision of Assistance.--
            ``(1) Determination of commitment period.--
                    ``(A) Initial determination.--In approving an 
                application under subsection (d), the Secretary shall, 
                subject to subparagraph (C), determine the period 
                during which assistance under this section is to be 
                provided for the operation described in the application 
                (referred to in this subsection as the `commitment 
                period').
                    ``(B) Authority to extend period.--At any time, the 
                Secretary may, subject to subparagraph (C) of this 
                paragraph and subsections (f) and (g), extend or reduce 
                the duration of the commitment period.
                    ``(C) Limitations.--The duration of any commitment 
                period (including any extension of the period) shall 
                not exceed 10 years and shall be consistent with 
                section 319.
            ``(2) Operating loans; loan guarantees.--To the extent that 
        an applicant whose application is approved under subsection (d) 
        is unable to obtain sufficient credit from commercial or 
        cooperative lenders to finance the operation described in the 
application at reasonable rates and terms, the Secretary shall, subject 
to the availability of funds, subject to subsection (f), and consistent 
with sections 360 and 362, make a conditional commitment to the 
applicant for each year of the commitment period to provide to any 
commercial or cooperative lender who makes a loan to the applicant that 
is within the credit needs of the operation (as specified in the plan 
contained in the application) a guarantee under section 309(h), which, 
for purposes of this section, shall be of an amount equal to the lesser 
of--
                    ``(A) the minimum total amount of loan principal 
                and interest necessary to induce such a lender to make 
                such a loan to the applicant; or
                    ``(B) 90 percent of the total amount of loan 
                principal and interest.
            ``(3) Loans or guarantees for new or improved equipment.--
        The Secretary shall make a commitment to any applicant whose 
        application is approved under subsection (d) of this section to 
        provide the applicant with loan guarantees under section 309(h) 
        to finance the acquisition, improvement, or repair of equipment 
        needed in the operation described in the application if the 
        plan contained in the application provides for the commitment, 
        to the extent that the applicant is unable to obtain sufficient 
        credit from commercial or cooperative lenders for such purposes 
        at reasonable rates and terms.
    ``(f) Effects of Avoidable Failure To Achieve Goals.--
            ``(1) Revocation of commitments.--The Secretary shall 
        revoke any commitment for assistance made to an applicant under 
        this section if the operation of the applicant fails, for 2 
        consecutive years, to meet the goals specified in the plan, 
        unless the failure has not materially reduced the likelihood of 
        the operation becoming financially viable and is due to 
        circumstances beyond the control of the applicant.
            ``(2) Permanent ineligibility for assistance.--An applicant 
        with respect to whom a revocation is made under paragraph (1) 
        shall not be eligible for assistance under this section.''.
    (f) Elimination of Demonstration Project.--Section 351 (7 U.S.C. 
1999), as amended by section 108(f)(42) of this Act, is amended by 
striking subsection (h).
    (g) Conforming Amendments.--
            (1) Section 305 (7 U.S.C. 1925) is amended by striking 
        ``310D, and 310E'' and inserting ``or 310D''.
            (2) Section 309 (7 U.S.C. 1929) is amended by striking 
        subsections (h)(3) and (i).
            (3) Section 343(b) (7 U.S.C. 1991(b)) is amended by 
        striking ``351(h),''.
            (4) Section 346(b) (7 U.S.C. 1994(b)) is amended--
                    (A) in paragraph (3), by striking subparagraphs (E) 
                and (F) and redesignating subparagraph (G) as 
                subparagraph (E); and
                    (B) by striking paragraphs (5) and (6).

SEC. 107. ELIMINATION OF TARGET PARTICIPATION RATES.

    (a) Repeal.--Section 355 (7 U.S.C. 2003) is repealed.
    (b) Conforming Amendments.--
            (1) Section 346(b)(3)(D) (7 U.S.C. 1994(b)(3)(D)) is 
        amended by striking ``To the extent that it is not inconsistent 
        with an exercise of authority under section 355, in'' and 
        inserting ``In''.
            (2) Section 2501(c)(2)(D) of the Food, Agriculture, 
        Conservation, and Trade Act of 1990 (7 U.S.C. 2279(c)(2)(D)) is 
        amended by striking ``compared to the target participation 
        rates established pursuant to sections 355(a)(1) and 355(c) of 
the Consolidated Farm and Rural Development Act (7 U.S.C. 
2003(a)(1)),''.
            (3) Section 8(b)(5)(B)(iv) of the Soil Conservation and 
        Domestic Allotment Act (16 U.S.C. 590h(b)(5)(B)(iv)) is amended 
        by striking ``groups'' and all that follows and inserting 
        ``groups. For purposes of the preceding sentence, the term 
        `socially disadvantaged groups' means groups whose members have 
        been subjected to racial, ethnic, or gender prejudice because 
        of their identity as members of a group without regard to their 
        individual qualities.''.

SEC. 108. MISCELLANEOUS AND CONFORMING AMENDMENTS.

    (a) Clarification of Written Statement Required of Borrowers.--
Section 333(1) (7 U.S.C. 1983(1)) is amended by striking ``a written 
statement showing the applicant's net worth'' and inserting ``an 
appropriate written financial statement''.
    (b) Extension of Veterans Preference to Veterans of the Gulf War.--
Section 333(5) (7 U.S.C. 1983(5)), as so redesignated by section 
104(f)(1) of this Act, is amended by striking ``or the Vietnam era'' 
and inserting ``, during the Vietnam era, or during the liberation of 
Kuwait under Project Desert Shield or Project Desert Storm,''.
    (c) Verification of the Credit Elsewhere Test.--Section 333A(e)(4) 
(7 U.S.C. 1983a(e)(4)) is amended by striking ``With the approval of 
the borrower, the'' and inserting ``The''.
    (d) Elimination of Requirement To Testify and Report on Budget 
Request.--Section 345 (7 U.S.C. 1993) is repealed.
    (e) Elimination of Requirement To Develop and Report on Long-Term 
Cost Projections.--Section 346(c) (7 U.S.C. 1994(c)) is repealed.
    (f) Elimination of Authority To Insure Loans.--
            (1) Section 302(b) (7 U.S.C. 1922(b)) is amended by 
        striking ``or insured''.
            (2) Section 303 (7 U.S.C. 1923), as amended by section 
        103(a)(1) of this Act, is amended by striking ``or insured''.
            (3) Section 304(b) (7 U.S.C. 1924(b)) is amended by 
        striking ``or insured''.
            (4) Section 305 (7 U.S.C. 1925) is amended by striking ``or 
        insure''.
            (5) Section 306(a)(1) (7 U.S.C. 1926(a)(1)) is amended--
                    (A) by striking ``or insure''; and
                    (B) by striking ``or insured''.
            (6) Section 306(a)(15)(A) (7 U.S.C. 1926(a)(15)(A)) is 
        amended--
                    (A) by striking ``or insure''; and
                    (B) by striking ``or insured''.
            (7) Section 306C(a)(1) (7 U.S.C. 1926c(a)(1)) is amended by 
        striking ``or insure''.
            (8) Section 306C(b)(1) (7 U.S.C. 1926c(b)(1)) is amended by 
        striking ``or insure''.
            (9) Section 307(a)(6)(A) (7 U.S.C. 1927(a)(6)(A)) is 
        amended by striking ``or insured''.
            (10) Section 307(c) (7 U.S.C. 1927(c)) is amended by 
        striking ``, insured,''.
            (11) Section 308 (7 U.S.C. 1928) is amended by striking the 
        1st sentence.
            (12) Section 309(f)(1) (7 U.S.C. 1929(f)(1)) is amended--
                    (A) by striking ``could be'' and inserting 
                ``(before the date of the enactment of the Agricultural 
                Regulatory Relief and Trade Act of 1996) could have 
                been''; and
                    (B) by striking ``and insure''.
            (13) Section 309(f)(2) (7 U.S.C. 1929(f)(2)) is amended by 
        striking ``or hereafter''.
            (14) Section 309A (7 U.S.C. 1929a) is amended in each of 
        subsections (d) and (e) by striking ``, guaranteed, or 
        insured'' and inserting ``or guaranteed''.
            (15) Section 309A(g)(1) (7 U.S.C. 1929a(g)(1)) is amended--
                    (A) by striking ``could be'' and inserting 
                ``(before the date of the enactment of the Agricultural 
                Regulatory Relief and Trade Act of 1996) could have 
                been''; and
                    (B) by striking ``and insure''.
            (16) Section 309A(g) (7 U.S.C. 1929a(g)) is amended in each 
        of paragraphs (2) and (7) by striking ``or hereafter''.
            (17) Section 310A (7 U.S.C. 1931) is repealed.
            (18) Section 310B(a) (7 U.S.C. 1932(a)) is amended--
                    (A) by striking ``and insure''; and
                    (B) by striking ``, insured,''.
            (19) Section 310B(e)(1) (7 U.S.C. 1932(e)(1)) is amended by 
        striking ``insure and''.
            (20) Section 310B(e)(2) (7 U.S.C. 1932(e)(2)) is amended by 
        striking ``insure or''.
            (21) Section 310D(a) (7 U.S.C. 1934(a)) is amended by 
        striking ``and insure''.
            (22) Section 311(c) (7 U.S.C. 1941(c)) is amended by 
        striking ``or insured''.
            (23) Section 313 (7 U.S.C. 1943) is amended by striking 
        ``or insure''.
            (24) Section 316(a)(3) (7 U.S.C. 1946(a)(3)) is amended by 
        striking ``or insured''.
            (25) Section 317 (7 U.S.C. 1947) is repealed.
            (26) Section 322(a) (7 U.S.C. 1962(a)) is amended by 
        striking ``or insure''.
            (27) Section 323 (7 U.S.C. 1963) is amended by striking 
        ``or insured''.
            (28) Section 324(a) (7 U.S.C. 1964(a)) is amended by 
        striking ``or insured''.
            (29) Section 324(b)(2) (7 U.S.C. 1964(b)(2)) is amended--
                    (A) by striking clause (A); and
                    (B) by striking ``(B)''.
            (30) Section 328 (7 U.S.C. 1968) is repealed.
            (31) Section 333A (7 U.S.C. 1983a) is amended by striking 
        subsection (b).
            (32) Section 333A(f) (7 U.S.C. 1983a(f)) is amended in each 
        of paragraphs (4) and (5) by striking ``an insured'' and 
        inserting ``a''.
            (33) Section 335(e)(5)(A) (7 U.S.C. 1985(e)(5)(A)) is 
        amended by striking ``made or insured''.
            (34) Section 343(a)(4) (7 U.S.C. 1991(a)(4)) is amended by 
        striking ``word `insure' as used in this title includes 
        guarantee, which means'' and inserting ``term `guarantee' 
        means''.
            (35) Section 343(a)(9) (7 U.S.C. 1991(a)(9)) is amended by 
        striking ``or insured''.
            (36) Section 344 (7 U.S.C. 1992) is amended by striking 
        ``insured, or made to be sold and insured,''.
            (37) Section 346(a) (7 U.S.C. 1994(a)) is amended by 
        striking ``and insured''.
            (38) Section 346(b)(1) (7 U.S.C. 1994(b)(1)) is amended by 
        striking ``insured, made to be sold and insured, or''.
            (39) Section 346(b)(3) (7 U.S.C. 1994(b)(3)), as amended by 
        sections 106(g)(4) and 107(b)(1) of this Act, is amended by 
        striking subparagraphs (B) and (D) and redesignating 
        subparagraphs (C) and (E) as subparagraphs (B) and (C), 
        respectively.
            (40) Section 346(d)(1) (7 U.S.C. 1994(d)(1)) is amended by 
        striking ``authorized to be insured, or made to be sold and 
insured,'' and inserting ``made''.
            (41) Section 348 (7 U.S.C. 1996) is amended--
                    (A) by striking ``and insuring'';
                    (B) by striking ``and insure''; and
                    (C) by striking ``or insured''.
            (42) Section 351(h)(8)(C) (7 U.S.C. 1999(h)(8)(C)) is 
        amended by striking ``, insured, ''.
            (43) Section 358 (7 U.S.C. 2006) is amended by striking ``, 
        insure,''.

         Subtitle B--Amendments to the Farm Credit Act of 1971

SEC. 151. REFERENCES.

    Except as otherwise expressly provided, wherever in this subtitle 
an amendment or repeal is expressed in terms of an amendment to, or 
repeal of, a section or other provision, the reference shall be 
considered to be made to a section or other provision of the Farm 
Credit Act of 1971.

SEC. 152. REPEAL OF REQUIREMENTS RELATING TO REVIEW OF DECISIONS TO 
              DENY OR REDUCE THE AMOUNT OF A LOAN.

    (a) Repeal.--Section 4.14 (12 U.S.C. 2202) is repealed.
    (b) Conforming Amendments.--
            (1) Section 4.13B (12 U.S.C. 2201) is amended in each of 
        subsections (a) and (b)--
                    (A) by adding ``and'' at the end of paragraph (1);
                    (B) by striking ``; and'' at the end of paragraph 
                (2) and inserting a period; and
                    (C) by striking paragraph (3).
            (2) Section 4.14A(a)(5)(B)(ii)(I) (12 U.S.C. 
        2202a(a)(5)(B)(ii)(I)) is amended by striking ``4.14,''.
            (3) Section 8.9 (12 U.S.C. 2279aa-9) is amended by striking 
        ``4.14,'' each place such term appears.

SEC. 153. PROHIBITION AGAINST RESTRUCTURING OF RESTRUCTURED LOANS OR 
              LOANS INVOLVED IN BANKRUPTCY PROCEEDINGS.

    (a) In General.--Section 4.14A(a)(5)(A) (12 U.S.C. 2202a(a)(5)(A)) 
is amended by inserting ``, which has not been restructured under this 
section and with respect to which the borrower has not filed a petition 
for bankruptcy under title 11, United States Code'' before the period.
    (b) Elimination of Required Reports to the Farm Credit 
Administration.--Section 4.14A (12 U.S.C. 2202a) is amended by striking 
subsections (g) and (h) and inserting the following:
    ``(g) Restructuring Policy.--
            ``(1) Establishment.--Within 60 days after the date of the 
        enactment of this paragraph, the board of directors of each 
        qualified lender shall develop a policy that is consistent with 
        this section, to govern the restructuring of distressed loans.
            ``(2) Contents of policy.--The policy established under 
        paragraph (1) shall include an explanation of the procedure for 
        submitting an application for restructuring.''.
    (c) Related Amendments.--Section 4.14A (12 U.S.C. 2202a) is amended 
by striking subsections (k) and (l).
    (d) Conforming Amendments.--
            (1) Section 4.14A (12 U.S.C. 2202a) is amended by 
        redesignating subsections (i) and (j) as subsections (h) and 
        (i), respectively.
            (2) Section 5.31 (12 U.S.C. 2267) is amended by striking 
        ``4.14A(i)'' and inserting ``4.14A(h)''.
            (3) Section 5.32(h) (12 U.S.C. 2268(h)) is amended by 
        striking ``4.14A(i)'' and inserting ``4.14A(h)''.

SEC. 154. REPEAL OF RULES GOVERNING EFFECT OF RESTRUCTURING ON BORROWER 
              STOCK.

    (a) Repeal.--Section 4.14B (12 U.S.C. 2202b) is repealed.
    (b) Conforming Amendments.--
            (1) Section 4.9A(b) (12 U.S.C. 2162(b)) is amended--
                    (A) by adding ``or'' at the end of paragraph (1);
                    (B) by striking paragraph (2); and
                    (C) by redesignating paragraph (3) as paragraph 
                (2).
            (2) Section 4.14A(a)(5)(B)(ii)(I) (12 U.S.C. 
        2202a(a)(5)(B)(ii)(I)) is amended by striking ``4.14B,''.
            (3) Section 8.9 (12 U.S.C. 2279aa-9) is amended by striking 
        ``4.14B,'' each place such term appears.

SEC. 155. REPEAL OF RULES GOVERNING REVIEW OF RESTRUCTURING DENIALS.

    (a) Repeal.--Section 4.14C (12 U.S.C. 2202c) is repealed.
    (b) Conforming Amendments.--
            (1) Section 4.14A(a)(5)(B)(ii)(I) (12 U.S.C. 
        2202a(a)(5)(B)(ii)(I)) is amended by striking ``4.14C, 4.14D,'' 
        and inserting ``4.14D''.
            (2) Section 8.9 (12 U.S.C. 2279aa-9) is amended by striking 
        ``4.14C,'' each place such term appears.

SEC. 156. ELIMINATION OF CERTAIN REQUIREMENTS RELATING TO LOANS PLACED 
              IN NONACCRUAL STATUS.

    Section 4.14D (12 U.S.C. 2202d) is amended by striking subsection 
(d).

SEC. 157. LIMITATIONS ON THE RIGHT OF FIRST REFUSAL.

    Section 4.36 (12 U.S.C. 2219a) is amended--
            (1) in subsection (a), by striking ``or lease'';
            (2) in subsection (b)(1)--
                    (A) by striking ``Within'' and inserting ``Except 
                as otherwise provided in subsection (c), within''; and
                    (B) by inserting ``by private sale,'' after ``such 
                real estate,'';
            (3) by striking subsection (c) and redesignating 
        subsections (d) through (g) as subsections (c) through (f), 
        respectively;
            (4) by redesignating subsections (h) and (i) as subsections 
        (j) and (k), respectively; and
            (5) by inserting after subsection (f) (as so redesignated 
        by paragraph (3) of this section) the following:
    ``(g) Previous Owner Defined.--As used in this section, the term 
`previous owner' does not include a mortgagor or grantor of an 
equivalent lien interest in agricultural real estate unless such person 
is also a borrower in the transaction.
    ``(h) Personal and Nonassignable Right.--The right of first refusal 
arising under this section is personal to, and not assignable by, the 
previous owner.
    ``(i) Rule of Interpretation.--This section shall not be 
interpreted to preclude a borrower from voluntarily waiving the right 
of first refusal arising under this section in connection with a 
voluntary conveyance of agricultural real estate in lieu of 
foreclosure.''.

                      TITLE II--RURAL DEVELOPMENT

SEC. 201. CAPITALIZATION GRANTS TO STATES FOR RURAL DEVELOPMENT.

    The Rural Development Act of 1972 is amended by adding at the end 
the following:

   ``TITLE VII--CAPITALIZATION GRANTS TO STATES FOR RURAL DEVELOPMENT

``SEC. 701. PURPOSES.

    ``The purpose of this title is to provide eligible States and 
territories with a consolidated source of funding for rural 
development, and to encourage States to establish revolving funds 
through which rural development may be financed permanently.

``SEC. 702. GRANTS.

    ``(a) Grant Authority.--
            ``(1) In general.--
                    ``(A) Grants to eligible states.--Each eligible 
                State shall be entitled to receive from the Secretary 
                for each fiscal year a grant in an amount equal to the 
                applicable share of 99.25 percent of the amount (if 
                any) appropriated pursuant to this subsection for the 
                fiscal year.
                    ``(B) Grants to eligible territories.--Each 
                eligible territory shall be entitled to receive from 
                the Secretary for each fiscal year a grant in an amount 
                equal to the applicable share of 0.75 percent of the 
                amount (if any) appropriated pursuant to this 
                subsection for the fiscal year.
            ``(2) Subject to appropriations.--The authority provided by 
        paragraph (1) shall be effective only to such extent or in such 
        amounts as are provided in advance in appropriations Acts.
            ``(3) Limitations on authorization of appropriations.--For 
        grants under paragraph (1), there are authorized to be 
        appropriated to the Secretary not more than $836,025,000 for 
        each of fiscal years 1996 through 2002.
    ``(b) Rules Governing Payments.--Grants under this section shall be 
paid under rules prescribed by the Secretary, which shall be similar to 
the rules provided for in the document published by the Environmental 
Protection Agency on January 29, 1988, and entitled `SRF Initial 
Guidance For State Revolving Funds'.
    ``(c) Limitation on Federal Authority.--A jurisdiction to which 
funds are provided under this section shall have sole discretion to 
determine how such funds are to be expended and the entities to which 
such funds are to be provided, subject to this title.
    ``(d) Definitions.--As used in this title:
            ``(1) Eligible state.--The term `eligible State' means a 
        State that meets the following requirements:
                    ``(A) The State has established a rural development 
                revolving fund.
                    ``(B) The State has established to the satisfaction 
                of the Secretary that the revolving fund will be 
                operated and administered in accordance with section 
                703(a).
                    ``(C) The State has agreed that the State agency 
                responsible for administering the revolving fund 
                shall--
                            ``(i) consult with representatives of local 
                        governments, businesses, nonprofit 
                        organizations, and with the State agency with 
                        expertise in rural development and agriculture, 
                        in implementing this title; and
                            ``(ii) consult with general purpose local 
                        governments in developing priorities for 
                        funding activities from the revolving fund, 
                        criteria for selecting recipients of assistance 
                        from the revolving fund, and the method of 
                        distributing funds from the revolving fund.
                    ``(D)(i) The State has agreed to submit to the 
                Secretary biennial reports which describe the manner in 
                which the amounts paid to the State under this section 
                are used, and include evidence that, in each fiscal 
                year covered by the report, the State has expended for 
                rural development from State sources an amount equal to 
                not less than 20 percent of the total amount paid to 
                the State under subsection (a) during the fiscal year.
                    ``(ii) As used in clause (i), the term `rural 
                development' includes--
                            ``(I) rural infrastructure, including water 
                        and sewer systems, highways, roads, and 
                        bridges;
                            ``(II) rural education and job training, 
                        including vocational and technical training;
                            ``(III) rural health services; and
                            ``(IV) rural housing assistance.
            ``(2) Eligible territory.--The term `eligible territory' 
        means a territory that meets the following requirements:
                    ``(A) The territory has agreed to use the funds 
                provided to the territory under subsection (a) only for 
                qualified rural development purposes.
                    ``(B) The territory has agreed to submit to the 
                Secretary biennial reports which describe the manner in 
                which the amounts paid to the territory under this 
                section are used, and include evidence that, in each 
                fiscal year covered by the report, the territory has 
                expended for rural development from territory sources 
                an amount equal to not less than 20 percent of the 
                total amount paid to the territory under subsection (a) 
                during the fiscal year.
            ``(3) State.--The term `State' means the 50 States.
            ``(4) Territory.--The term `territory' means the 
        Commonwealth of Puerto Rico, the United States Virgin Islands, 
        the Commonwealth of the Northern Mariana Islands, Guam, 
        American Samoa, and the Trust Territory of the Pacific Islands.
            ``(5) Secretary.--The term `Secretary' means the Secretary 
        of Agriculture.
            ``(6) Applicable share.--
                    ``(A) For states.--The term `applicable share' 
                means, with respect to a State--
                            ``(i) the annual average amount paid to the 
                        State during fiscal years 1991 through 1995 
                        from amounts made available for loans and 
                        grants for rural water and waste disposal 
                        pursuant to section 306 of the Consolidated 
                        Farm and Rural Development Act (as in effect 
                        before the effective date of title II of the 
                        Agricultural Regulatory Relief and Trade Act of 
                        1996); divided by
                            ``(ii) the total amount paid to all States 
                        during such fiscal years from the amounts so 
                        made available.
                    ``(B) For territories.--The term `applicable share' 
                means, with respect to a territory--
                            ``(i) the annual average amount paid to the 
                        territory during fiscal years 1991 through 1995 
                        from amounts made available for loans and 
                        grants for rural water and waste disposal 
                        pursuant to section 306 of the Consolidated 
                        Farm and Rural Development Act (as in effect 
                        before the effective date of title II of the 
                        Agricultural Regulatory Relief and Trade Act of 
1996); divided by
                            ``(ii) the total amount paid to all 
                        territories during such fiscal years from the 
                        amounts so made available.

``SEC. 703. STATE RURAL DEVELOPMENT REVOLVING FUNDS.

    ``(a) Requirements.--A State rural development revolving fund shall 
be operated and administered in accordance with the following 
requirements:
            ``(1) Grants to be deposited into the fund.--Any amount 
        paid to the State under section 702(a) shall be immediately 
        deposited into the fund.
            ``(2) Use of amounts.--
                    ``(A) In general.--The amounts in the fund shall be 
                made available in perpetuity and be used only for 
                qualified rural development purposes.
                    ``(B) Exception.--Notwithstanding subparagraph (A), 
                any amounts in the fund which are not immediately to be 
                used in accordance with subparagraph (A) may be 
                invested in interest-bearing securities.
                    ``(C) Prohibition.--The amounts in the fund may not 
                be used to guarantee the repayment of principal or 
                interest on any loan made from the fund.
            ``(3) Limitations on term of loans.--Loans may be made from 
        the fund at or below market interest rates (including interest-
        free), and shall not be made for a period that exceeds the 
        lesser of--
                    ``(A) the life of the activities so financed; or
                    ``(B) 40 years.
            ``(4) Crediting of repayments.--The fund will be credited 
        with all repayments of principal and interest on loans and 
        investments made from the fund.
            ``(5) Limit on percentage of federal funds used for 
        grants.--Not more than 30 percent of the amounts in the fund 
        may be used to make grants during any fiscal year.
            ``(6) Minimum percentage of rural development funds used 
        for communities with populations of 10,000 or less.--Not less 
        than 80 percent of the amounts in the fund shall be used for 
        the benefit of communities with populations of 10,000 or fewer 
        individuals.
            ``(7) Limit on percentage of rural development funds used 
        for communities with populations exceeding 10,000 but not 
        exceeding 25,000.--Not more than 20 percent of the amounts in 
        the fund may be used for the benefit of communities with 
        populations exceeding 10,000 but not exceeding 25,000 
        individuals.
            ``(8) Minimum percentage of federal funds used for 
        technical assistance related to water and waste disposal.--Not 
        less than 1 percent of the amounts paid to the State under 
        section 702(a) during the fiscal year shall be used to provide 
        financing pursuant to subsection (b)(2) of this section.
            ``(9) Priority to be given in making grants for technical 
        assistance related to water and waste disposal.--In making 
        grants pursuant to subsection (b)(2), priority shall be given 
        to organizations with experience in providing technical 
        assistance and training to associations serving rural areas.
            ``(10) Accounting for funds by recipients.--An amount in 
        the fund shall not be provided to any entity unless, as a 
        condition of providing the amount, the entity agrees to account 
        for the amount in accordance with generally accepted accounting 
        principles.
            ``(11) Reasonable assurance of loan repayment.--A loan 
        shall not be made to an entity from the fund unless the entity 
        provides reasonable assurance of a source of funds for 
        repayment of the loan.
            ``(12) Certification by local governments of direct benefit 
        to local residents.--An amount in the fund shall not be 
        provided to any entity for any activity to be conducted in an 
        area unless the entity has provided the State with a 
        certification from the unit of local government for the area 
        that the activity will directly benefit the residents of the 
        area.
            ``(13) Powers of fund administrator.--The fund shall be 
        administered by an instrumentality of the State with such 
        powers as may be required to operate the fund in accordance 
        with this title.
    ``(b) Qualified Rural Development Purpose.--As used in this title, 
the term `qualified rural development purpose' means any of the 
following:
            ``(1) Water and waste disposal and essential community 
        facilities programs.--To make loans or grants, or to guarantee 
        the repayment of principal or interest on loans made, to 
        associations, including corporations not operated for profit, 
        Indian tribes on Federal and State reservations and other 
        federally recognized Indian tribes, and public and quasi-public 
        agencies, all primarily serving farmers, ranchers, farm 
        tenants, farm laborers, rural businesses, and other rural 
        residents--
                    ``(A) to provide for the conservation, development, 
                use, and control of water, and the installation or 
                improvement of drainage or waste disposal facilities, 
                and to furnish financial assistance or other aid in 
                planning projects for such purposes;
                    ``(B) to provide for essential community 
                facilities, including necessary related equipment; or
                    ``(C) to finance specific projects for works for 
                the development, storage, treatment, purification, or 
                distribution of water or the collection, treatment, or 
                disposal of waste in rural areas.
            ``(2) Rural water and waste disposal circuit rider 
        technical assistance and training program.--To make grants to 
        private nonprofit organizations to enable such organizations to 
        provide to associations described in paragraph (1) technical 
        assistance and training--
                    ``(A) to identify, and evaluate alternative 
                solutions to, problems relating to the obtaining, 
                storage, treatment, purification, or distribution of 
                water or the collection, treatment, or disposal of 
                waste in rural areas;
                    ``(B) to prepare applications to receive financial 
                assistance for any purpose specified in paragraph (1) 
                from any public or private source; or
                    ``(C) to improve the operation and maintenance 
                practices at any existing works for the storage, 
                treatment, purification, or distribution of water or 
                the collection, treatment, or disposal of waste in 
                rural areas.
            ``(3) Rural business and industry.--
                    ``(A) In general.--To make loans or grants to 
                public, private, or cooperative organizations organized 
                not for profit, to Indian tribes on Federal and State 
                reservations or other federally recognized Indian 
                tribal groups, or to make loans, or guarantee the 
                repayment of principal or interest on loans made, to 
                private or cooperative organizations organized for 
                profit, for the purposes of--
                            ``(i) improving, developing, or financing 
                        business, industry, and employment and 
                        improving the economic climate in rural 
                        communities; or
                            ``(ii) the conservation, development, and 
                        use of water for aquaculture purposes in rural 
                        areas.
                    ``(B) Intermediary relending.--To make loans to 
                nonprofit organizations for the purpose of funding 
                revolving loan funds operated in accordance with rules 
                similar to the rules governing the operation of the 
                State rural development revolving fund established 
                pursuant to section 702(d)(1)(A), or to guarantee the 
                repayment of principal or interest on loans made by 
                such revolving loan funds to organizations organized 
                for profit for the purposes described in subparagraph 
                (A) of this paragraph.
            ``(4) Solid waste management.--To make loans or grants to 
        nonprofit organizations for the provision of regional technical 
        assistance to local and regional governments and related 
        agencies for the purpose of improving the planning and 
        management of solid waste disposal facilities.
            ``(5) Rural business enterprise.--To make loans or grants 
        to public bodies and private nonprofit corporations for 
        measures designed to finance and facilitate development of 
        small and emerging private business enterprises or the 
        creation, expansion, and operation of rural distance learning 
        networks or rural learning programs that provide educational 
        instruction or job training instruction related to potential 
        employment or job advancement to adult students, including the 
        development, construction or acquisition of land, buildings, 
        plants, equipment, access streets and roads, parking areas, 
        utility extensions, necessary water supply and waste disposal 
        facilities, refinancing, services and fees, or for the purpose 
        of demonstrating the effectiveness of statewide nonprofit 
        public television systems whose coverage area is primarily 
        rural in providing information on agriculture and other issues 
        of importance to farmers and other rural residents.
            ``(6) Rural technology and cooperative development.--To 
        make loans or grants to 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, 
        for the purpose of enabling the organization or institution to 
        establish and operate centers for rural technology or 
        cooperative development--
                    ``(A) the primary objective of which may be to 
                improve the economic condition of rural areas by 
                promoting the development (through technological 
                innovation, cooperative development, and adaptation of 
                existing technology) and commercialization of--
                            ``(i) new services and products that can be 
                        produced or provided in rural areas;
                            ``(ii) new processes that can be utilized 
                        in the production of products in rural areas; 
                        and
                            ``(iii) new enterprises that can add value 
                        to on-farm production through processing or 
                        marketing; and
                    ``(B) the activities of which may include--
                            ``(i) programs for technology research, 
                        investigations, and basic feasibility studies 
                        in any field or discipline for the purpose of 
                        generating principles, facts, technical 
                        knowledge, new technology, or other information 
                        that may be useful to rural industries, 
                        cooperatives, agribusinesses, and other persons 
or entities in rural areas served by such centers in the development 
and commercialization of new products, processes, or services;
                            ``(ii) programs for the collection, 
                        interpretation, and dissemination of 
                        principles, facts, technical knowledge, new 
                        technology, or other information that may be 
                        useful to rural industries, cooperatives, 
                        agribusinesses, and other persons in rural 
                        areas served by the center in the development 
                        and commercialization of new products, 
                        processes, or services;
                            ``(iii) programs providing training and 
                        instruction for individuals residing in rural 
                        areas served by the center with respect to the 
                        development (through technological innovation, 
                        cooperative development, and adaptation of 
                        existing technology) and commercialization of 
                        new products, processes, or services;
                            ``(iv) programs providing loans and grants 
                        to individuals, small businesses, and 
                        cooperatives in rural areas served by the 
                        center for purposes of generating, evaluating, 
                        developing, and commercializing new products, 
                        processes, or services;
                            ``(v) programs providing technical 
                        assistance and advisory services to 
                        individuals, small businesses, cooperatives, 
                        and industries in rural areas served by the 
                        center for purposes of developing and 
                        commercializing new products, processes, or 
                        services; or
                            ``(vi) programs providing research and 
                        support to individuals, small businesses, 
                        cooperatives, and industries in rural areas 
                        served by the center for purposes of developing 
                        new agricultural enterprises to add value to 
                        on-farm production through processing or 
                        marketing.
            ``(7) Distance learning and medical links.--To make loans 
        or grants to encourage and improve the use of 
        telecommunications, computer networks, and related advanced 
        technologies, by persons associated with end users of such 
        facilities, including students and teachers, medical 
        professionals, small businesses, and other residents living in 
        rural areas associated with rural community facilities in rural 
        areas.
            ``(8) Provision of security for certain state obligations 
        used to raise funds for rural development.--To provide security 
        for, or to make principal or interest payments on revenue or 
        general obligation bonds issued by the State if the proceeds 
        from the sale of such bonds is deposited in the State rural 
        development revolving fund established pursuant to section 
        702(d)(1)(A).
            ``(9) Limited administrative costs.--To pay the costs of 
        administering the State rural development revolving fund 
        established pursuant to section 702(d)(1)(A), except that 
        amounts expended from the fund during any fiscal year for this 
        purpose may not exceed 3 percent of the total amount paid to 
        the State under section 702(a) for the fiscal year.
            ``(10) Financial support for local financing of rural 
        development.--To guarantee, or purchase insurance for, local 
        obligations the proceeds of which shall be used for another 
        qualified rural development purpose.
            ``(11) Local share requirements of other federal grant-in-
        aid programs related to rural development.--To pay the local 
        share requirements of another Federal grant-in-aid program 
        related to rural development to the extent not expressly 
prohibited by the law providing for the grant-in-aid program.
            ``(12) Interstate rural development activities.--To 
        participate with other States or territories in arrangements 
        for the financing of a qualified rural development purpose 
        which is of interstate character.
            ``(13) Assistance to other states for rural development.--
        To make loans to another State or territory for a qualified 
        rural development purpose.
    ``(c) Other Definitions.--
            ``(1) Aquaculture.--The term `aquaculture' means the 
        culture or husbandry of aquatic animals or plants by private 
        industry for commercial purposes including the culture and 
        growing of fish by private industry for the purpose of creating 
        or augmenting publicly owned and regulated stocks of fish.
            ``(2) Rural; rural area.--
                    ``(A) In general.--The terms `rural' and `rural 
                area' means all area of a State or territory that is 
                not within the outer boundary of any city having a 
                population of 50,000 or more individuals and its 
                immediately adjacent urbanized and urbanizing areas 
                with a population density of more than 100 individuals 
                per square mile, according to the latest census data 
                available.
                    ``(B) Colonias included.--The terms `rural' and 
                `rural area' include any identifiable community that--
                            ``(i) is in the State of Arizona, 
                        California, New Mexico, or Texas;
                            ``(ii) is in the United States-Mexico 
                        border region;
                            ``(iii) is determined to be a colonia on 
                        the basis of objective criteria, including lack 
                        of potable water supply, lack of adequate 
                        sewage systems, and lack of decent, safe, and 
                        sanitary housing; and
                            ``(iv) was in existence as a colonia before 
                        October 1, 1989.

``SEC. 704. ENFORCEMENT PROVISIONS.

    ``(a) Review and Monitoring.--The Rural Economic and Community 
Development Director of a jurisdiction to which a payment is made under 
section 702 shall review and monitor compliance by the jurisdiction 
with this title.
    ``(b) Enforcement Recommendations.--If the Rural Economic and 
Community Development Director of a jurisdiction, after reasonable 
notice to the jurisdiction, finds that there has been a failure by the 
jurisdiction to comply substantially with any provision or requirement 
of this title, the Director shall notify the Secretary of the 
noncompliance and recommend that the Secretary take 1 or more of the 
following actions:
            ``(1) Suspend payments to the jurisdiction under section 
        702 until the Director is satisfied that the noncompliance has 
        ceased or that the noncompliance will be corrected promptly.
            ``(2) Recover any funds expended in violation of this 
        title.
            ``(3) Limit further payment to the jurisdiction under 
        section 702 to activities not affected by the noncompliance, 
        until the Director is satisfied that the noncompliance has 
        ceased or that the noncompliance will be corrected promptly.
            ``(4) Offset the amounts improperly expended against any 
        other amount that is or will be payable to the jurisdiction 
        under section 702.
            ``(5) Refer the matter to the Attorney General of the 
        United States.
            ``(6) Disqualify the jurisdiction from the receipt of 
        payments under section 702 for 12 months.
            ``(7) Reduce payments to the jurisdiction under section 702 
        for 12 months.
    ``(c) Imposition of Penalties.--Within 90 days after receiving 
notice and a recommendation from the Rural Economic and Community 
Development Director of a jurisdiction pursuant to subsection (b) and 
after providing reasonable notice to the jurisdiction and opportunity 
for a hearing, the Secretary shall, pursuant to a written ruling which 
shall be based on the recommendation of the Director and the hearing, 
take any action described in subsection (b) as the Secretary deems 
appropriate.
    ``(d) Rural Economic and Community Development Director.--As used 
in this section, the term `Rural Economic and Community Development 
Director' means, with respect to a jurisdiction, the officer or 
employee of the United States Department of Agriculture who is holding 
such position with respect to the jurisdiction.''.

SEC. 202. ELIMINATION OF OTHER RURAL DEVELOPMENT PROGRAMS.

    (a) Under the Consolidated Farm and Rural Development Act.--
            (1) Section 304 of the Consolidated Farm and Rural 
        Development Act (7 U.S.C. 1924), as amended by sections 
        102(a)(1)(B)(i) and 108(f)(3) of this Act, is amended by 
        striking subsection (b) and redesignating subsection (c) as 
        subsection (b).
            (2) Section 306 of such Act (7 U.S.C. 1926), as amended by 
        sections 108(f)(5) and 108(f)(6) of this Act, is repealed.
            (3) Section 306A of such Act (7 U.S.C. 1926a) is repealed.
            (4) Section 306B of such Act (7 U.S.C. 1926b) is repealed.
            (5) Section 306C of such Act (7 U.S.C. 1926c), as amended 
        by sections 108(f)(7) and 108(f)(8) of this Act, is repealed.
            (6) Section 310A of such Act (7 U.S.C. 1931), as amended by 
        section 108(f)(17) of this Act, is repealed.
            (7) Section 310B of such Act (7 U.S.C. 1932), as amended by 
        section 104(f)(2) and paragraphs (18), (19), and (20) of 
        section 108(f) of this Act, is repealed.
            (8) Section 312 of such Act (7 U.S.C. 1942), as amended by 
        sections 102(b)(1)(B)(i), 102(b)(1)(B)(ii), 102(b)(3), 
        103(c)(1), and 105(a) of this Act, is amended--
                    (A) in the 1st sentence of subsection (a)--
                            (i) by striking clauses (5), (6), (10), and 
                        (11);
                            (ii) by adding ``or'' at the end of clause 
                        (8);
                            (iii) by striking the comma at the end of 
                        clause (9) and inserting a period; and
                            (iv) by redesignating clauses (7), (8), and 
                        (9) as clauses (5), (6), and (7), respectively; 
                        and
                    (B) by striking subsections (b), (c), and (d) and 
                redesignating subsection (e) as subsection (b).
            (9) Section 365 of such Act (7 U.S.C. 2008) is repealed.
            (10) Section 366 of such Act (7 U.S.C. 2008a) is repealed.
            (11) Section 367 of such Act (7 U.S.C. 2008b) is repealed.
            (12) Section 368 of such Act (7 U.S.C. 2008c) is repealed.
    (b) Under the Food, Agriculture, Conservation, and Trade Act of 
1990.--
            (1) Section 2281 of the Food, Agriculture, Conservation, 
        and Trade Act of 1990 (42 U.S.C. 5177a) is repealed.
            (2) Subtitle B of title XXIII of such Act (7 U.S.C. 2007-
        2007e) is repealed.
            (3) Section 2322 of such Act (7 U.S.C. 1926-1) is repealed.
            (4) Section 2324 of such Act (7 U.S.C. 1926 note) is 
        repealed.
            (5) Section 2348 of such Act (7 U.S.C. 2662a) is repealed.
            (6) Section 2381 of such Act (7 U.S.C. 3125b) is repealed.
            (7) Section 2382 of such Act (13 U.S.C. 141 note) is 
        repealed.
            (8) Section 2385 of such Act (7 U.S.C. 950aaa-4 note) is 
        repealed.
            (9) Section 2391 of such Act (7 U.S.C. 2662 note) is 
        repealed.
            (10) Section 2392 of such Act (13 U.S.C. 141 note) is 
        repealed.
            (11) Section 2517 of such Act (104 Stat. 4077) is repealed.
    (c) Indian Subsistence Farming Demonstration Grant Program.--
Subtitle C of title IX of the Food, Agriculture, Conservation, and 
Trade Act Amendments of 1991 (7 U.S.C. 5930 note) is repealed.
    (d) Intermediary Relending Program.--Section 407 of the Human 
Services Reauthorization Act of 1986 (42 U.S.C. 9812a) is repealed.
    (e) Under the Food Security Act of 1985.--Section 1323 of the Food 
Security Act of 1985 (7 U.S.C. 1932 note) is repealed.
    (f) Under the Rural Development Act of 1972.--
            (1) Title V of the Rural Development Act of 1972 (7 U.S.C. 
        2661-2669) is repealed.
            (2) Section 603 of such Act (7 U.S.C. 2204a) is amended by 
        striking subsection (c).
    (g) Under the Rural Electrification Act of 1936.--
            (1) Section 3 of the Rural Electrification Act of 1936 (7 
        U.S.C. 903) is repealed.
            (2) Section 5 of such Act (7 U.S.C. 905) is repealed.
            (3) Section 311 of such Act (7 U.S.C. 940a) is repealed.
            (4) Title V of such Act (7 U.S.C. 950aa-950aa-1) is 
        repealed.

SEC. 203. CONFORMING AMENDMENTS.

    (a) Consolidated Farm and Rural Development Act Amendments.--
            (1) Section 307(a)(3) of the Consolidated Farm and Rural 
        Development Act (7 U.S.C. 1927(a)(3)) is amended--
                    (A) by striking subparagraphs (A) and (C); and
                    (B) in subparagraph (B)--
                            (i) by striking ``(B)'';
                            (ii) by redesignating clauses (i) and (ii) 
                        as subparagraphs (A) and (B), respectively; and
                            (iii) by redesignating subclauses (I) and 
                        (II) of subparagraph (A) (as so redesignated by 
                        clause (ii) of this subparagraph) as clauses 
                        (i) and (ii), respectively.
            (2) Section 307(a) of such Act (7 U.S.C. 1927(a)) is 
        amended by striking paragraph (4).
            (3) Section 307(a)(5) of such Act (7 U.S.C. 1927(a)(5)) is 
        amended--
                    (A) by striking ``(A) Except as provided in 
                subparagraph (B), the'' and inserting ``The''; and
                    (B) by striking subparagraph (B).
            (4) Section 307(a)(6)(B) of such Act (7 U.S.C. 
        1927(a)(6)(B)) is amended--
                    (A) by adding ``and'' at the end of clause (i); and
                    (B) by striking clauses (ii), (iii), (iv), (v), and 
                (vi) and redesignating clause (vii) as clause (ii).
            (5) Section 307(c) of such Act (7 U.S.C. 1927(c)) is 
        amended by striking ``, and for obligations in connection with 
        loans to associations under section 306, shall take liens on 
        the facility or such other security as he may determine to be 
        necessary''.
            (6) Section 309(g)(1) of such Act (7 U.S.C. 1929(g)(1)) is 
        amended by striking ``the last sentence of section 
        306(a)(1),''.
            (7) Section 309A(a) of such Act (7 U.S.C. 1929a(a)) is 
        amended by inserting ``(as in effect before the effective date 
        of title II of the Agricultural Regulatory Relief and Trade Act 
        of 1996)'' after each of ``304(b)'', ``306(a)(1)'', 
        ``306(a)(14)'', ``310B'', and ``312(b)''.
            (8) Section 309A(a) of such Act (7 U.S.C. 1929a(a)) is 
        amended by inserting ``prior to the repeal of such sections by 
        the Agricultural Regulatory Relief and Trade Act of 1996,'' 
        after ``312(b),''.
            (9) Section 309A(g)(8) of such Act (7 U.S.C. 1929a(g)(8)) 
        is amended--
                    (A) by striking ``make grants under sections 306(a) 
                and 310B of this title,''; and
                    (B) by striking ``including costs of the Secretary 
                incidental to guaranteeing rural development loans 
                under this title,''.
            (10) Section 310C(a) of such Act (7 U.S.C. 1933(a)) is 
        amended--
                    (A) by redesignating clauses (1), (2), and (3) as 
                clauses (A), (B), and (C), respectively;
                    (B) by inserting ``(1)'' after ``(a)''; and
                    (C) by adding after and below the end the 
                following:
    ``(2) As used in paragraph (1), the terms `rural' and `rural area' 
shall not include any area in any city or town which has a population 
in excess of 10,000 inhabitants.''.
            (11) Section 316(a) of such Act (7 U.S.C. 1946(a)), as 
        amended by section 108(f)(24) of this Act, is amended by 
        striking paragraph (3).
            (12) Section 331(b) of such Act (7 U.S.C. 1981(b)) is 
        amended--
                    (A) by adding ``and'' at the end of paragraph (7);
                    (B) in paragraph (8), by striking ``; and'' and 
                inserting a period; and
                    (C) by striking paragraph (9).
            (13) Section 333A(a) of such Act (7 U.S.C. 1983a(a)) is 
        amended by striking paragraph (4).
            (14) Section 344 of such Act (7 U.S.C. 1992), as amended by 
        section 108(f)(36) of this Act, is repealed.
    (b) Department of Agriculture Reorganization Act of 1994 
Amendments.--
            (1) Section 232(c) of the Department of Agriculture 
        Reorganization Act of 1994 (7 U.S.C. 6942(c)) is amended by 
        striking paragraphs (1) and (2) and inserting the following:
            ``(1) Electric and telephone loan programs and water and 
        waste facility activities authorized by law, including the 
        Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.).
            ``(2) Water and waste facility programs and activities 
        authorized by law, including the provisions of sections 309 and 
        309A of the Consolidated Farm and Rural Development Act (7 
        U.S.C. 1929 and 1929a) relating to assets, terms, and 
        conditions of water and sewer programs, and section 35 of the 
        Bankhead-Jones Farm Tenant Act (7 U.S.C. 1013a).''.
            (2) Section 233(b) of such Act (7 U.S.C. 6943(b)) is 
        amended--
                    (A) by striking paragraph (2); and
                    (B) in paragraph (3)--
                            (i) by striking ``(3)'' and inserting 
                        ``(2)''; and
                            (ii) by striking ``programs authorized by 
                        sections 365 through'' and inserting 
                        ``activities under section''.
            (3) Section 234(b) of such Act (7 U.S.C. 6944(b)) is 
        amended--
                    (A) in paragraph (1)--
                            (i) by striking ``and title V of''; and
                            (ii) by striking ``and 950aa et seq.''; and
                    (B) by striking paragraph (3).
    (c) North American Free Trade Agreement Implementation Act 
Amendment.--Section 321(h)(2) of the North American Free Trade 
Agreement Implementation Act (19 U.S.C. 3391(h)(2)) is amended by 
inserting ``(as in effect before the effective date of title II of the 
Agricultural Regulatory Relief and Trade Act of 1996)'' before the 
period.
    (d) Food, Agriculture, Conservation, and Trade Act of 1990 
Amendments.--
            (1) Section 2375(e) of the Food, Agriculture, Conservation, 
        and Trade Act of 1990 (7 U.S.C. 6613(e)) is amended by 
        inserting ``(as in effect before the effective date of title 
        II)'' before the comma.
            (2) Effective 5 years after the effective date of this 
        title, section 2375 of the Food, Agriculture, Conservation, and 
        Trade Act of 1990 (7 U.S.C. 6613) is amended by striking 
        subsection (e).
    (e) Cooperative Forestry Assistance Act of 1978 Amendment.--Section 
10(b)(3) of the Cooperative Forestry Assistance Act of 1978 (7 U.S.C. 
2106(b)(3)) is amended by striking ``the first clause of section 
306(a)(7)'' and inserting ``section 310C(a)(2)''.
    (f) The Robert T. Stafford Disaster Relief and Emergency Assistance 
Act Amendment.--Section 310(a) of The Robert T. Stafford Disaster 
Relief and Emergency Assistance Act (42 U.S.C. 5153(a)) is amended by 
striking paragraph (4) and redesignating paragraphs (5) through (7) as 
paragraphs (4) through (6), respectively.
    (g) Community Economic Development Act of 1981 Amendments.--Section 
628 of the Community Economic Development Act of 1981 (42 U.S.C. 9817) 
is amended--
            (1) by striking ``, as amended'' and all that follows 
        through ``1972'' and inserting ``and the Consolidated Farm and 
        Rural Development Act''; and
            (2) by redesignating paragraph (3) as paragraph (2).
    (h) Agricultural Act of 1970 Amendment.--Section 901(b) of the 
Agricultural Act of 1970 (42 U.S.C. 3122(b)) is amended by striking 
``as defined in the private business enterprise exception in section 
306(a)(7) of the Consolidated Farmers Home Administration Act of 1961, 
as amended (7 U.S.C. 1926)'' and inserting ``(as defined in section 
703(c)(2)(A) of the Rural Development Act of 1972)''.
    (i) Rural Electrification Act of 1936 Amendments.--
            (1) Section 4 of the Rural Electrification Act of 1936 (7 
        U.S.C. 904) is amended--
                    (A) by inserting ``(as in effect before the 
                effective date of title II of the Agricultural 
                Regulatory Relief and Trade Act of 1996)'' after ``3(d) 
                and 3(e)''; and
                    (B) by striking ``and section 5''.
            (2) Section 7 of such Act (7 U.S.C. 907) is amended by 
        striking ``authorized in section 3 of'' and inserting 
        ``appropriated to carry out''.
            (3) Section 12 of such Act (7 U.S.C. 912) is amended--
                    (A) in subsection (a)--
                            (i) by inserting ``(as in effect before the 
                        effective date of title II of the Agricultural 
                        Regulatory Relief and Trade Act of 1996)'' 
                        after ``section 5''; and
                            (ii) by inserting ``(as in effect before 
                        the effective date of title II of the 
                        Agricultural Regulatory Relief and Trade Act of 
                        1996)'' before the period; and
                    (B) in subsection (b)(3)(D), by striking the third 
                sentence.
            (4) Section 201 of such Act (7 U.S.C. 922) is amended by 
        striking ``pursuant to section 3 of the Rural Electrification 
        Act of 1936, as amended,''.
            (5) Section 301(a) of such Act (7 U.S.C. 931(a)) is 
        amended--
                    (A) in paragraph (2), by inserting ``(as in effect 
                before the effective date of title II of the 
                Agricultural Regulatory Relief and Trade Act of 1996)'' 
                after ``5''; and
                    (B) in paragraph (3), by striking ``notwithstanding 
                section 3(a) of title I,''.
            (6) Section 302 of such Act (7 U.S.C. 932) is amended--
                    (A) in each of subsections (a) and (b)(1), by 
                inserting ``(before the effective date of title II of 
                the Agricultural Regulatory Relief and Trade Act of 
                1996)'' after ``5''; and
                    (B) in subsection (b)(2), by striking ``pursuant to 
                section 3(a) of this Act'' and inserting ``before the 
                effective date of title II of the Agricultural 
                Regulatory Relief and Trade Act of 1996''.
            (7) Section 406(a) of such Act (7 U.S.C. 946(a)) is amended 
        in the 2nd sentence by inserting ``(as in effect before the 
        effective date of title II of the Agricultural Regulatory 
        Relief and Trade Act of 1996)'' before the period.

SEC. 204. SAVINGS PROVISION.

    This title and the amendments made by this title shall not be 
construed to affect any obligation entered into before the effective 
date of this title.

SEC. 205. EFFECTIVE DATE.

    This title and the amendments made by this title shall take effect 
on October 1, 1996.

                        TITLE III--CONSERVATION

SEC. 300. SHORT TITLE.

    This title may be cited as the ``Conservation Consolidation and 
Regulatory Reform Act of 1996''.

Subtitle A--Consolidation of Conservation Financial Assistance Programs 
                    of the Department of Agriculture

SEC. 301. PURPOSE OF SUBTITLE.

    It is the purpose of this subtitle to consolidate into a single 
program all current authorities of the Secretary of Agriculture with 
respect to conservation programs under which the Secretary contributes 
to the cost of conservation measures undertaken on private lands.

          PART 1--AGRICULTURAL CONSERVATION ASSISTANCE PROGRAM

SEC. 311. DEFINITIONS.

    For purposes of this part:
            (1) Agricultural conservation assistance program.--The term 
        ``Agricultural Conservation Assistance Program'' means the 
        program established under section 312 to provide technical and 
        financial assistance to the owners and operators of private 
        agricultural lands for conservation and improvement of soil, 
        water, and related natural resources.
            (2) Agricultural commodity.--The term ``agricultural 
        commodity'' means any annual or perennial crop (including 
        forage or hay), aquaculture product, nursery product, 
        silviculture product, and water-dependent crop (such as 
        cranberries, taro, watercress, or rice).
            (3) Agricultural lands.--The term ``agricultural lands'' 
        includes cropland, nonindustrial forest land, other lands used 
        to produce or support the production of an agricultural 
        commodity, and such other lands as the Secretary considers to 
        be appropriate for inclusion.
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.
            (5) Eligible practice.--The term ``eligible practice'' 
        means the establishment of a terrace, grassed waterway, contour 
        grass strip, filterstrip, shelterbelt, permanent wildlife 
        habitat, site-specific input management, or other activity that 
        the Secretary determines improves or protects soil, water, and 
        related natural resources.

SEC. 312. PROVISION OF TECHNICAL AND FINANCIAL ASSISTANCE FOR ELIGIBLE 
              PRACTICES TO CONSERVE AND IMPROVE SOIL, WATER, AND 
              RELATED NATURAL RESOURCES.

    (a) Agricultural Conservation Assistance Program.--Beginning with 
fiscal year 1997, the Secretary of Agriculture shall carry out a 
program (to be known as the ``Agricultural Conservation Assistance 
Program'') to provide technical and financial assistance to the owners 
and operators of private agricultural lands who request such assistance 
to plan, develop, and implement eligible practices applicable to such 
lands and intended to effectuate one or more of the following purposes:
            (1) Control of erosion and sedimentation from such lands.
            (2) Conservation of water resources on such lands and 
        promotion of water conservation practices.
            (3) Improvement of water quality in rural America.
            (4) Control of salinity resulting from the use of such 
        lands.
            (5) Enhancement, restoration, or creation of wetlands and 
        riparian areas.
            (6) Improvement in the production and utilization of 
        timber.
            (7) Improvement of wildlife habitat.
    (b) Contracts.--Subject to subsection (c), the Secretary shall 
provide technical and financial assistance under the Agricultural 
Conservation Assistance Program on the basis of a contract between the 
Secretary and an owner or operator of agricultural lands. The Secretary 
may not enter into a contract with an operator who is not also owner of 
the agricultural lands unless the actual owner of the lands concurs in 
the contract. The contract shall describe the eligible practice for 
which the assistance is being provided and specify the manner in which 
the eligible practice will be carried out consistent with the cost-
share plan developed under section 313.
    (c) Prioritization and Approval of Contracts.--
            (1) Approval by county or area committee.--Each contract 
        under the Agricultural Conservation Assistance Program shall be 
        subject to the approval of the county or area committee 
        established under section 8(b)(5) of the Soil Conservation and 
        Domestic Allotment Act (16 U.S.C. 590h(b)(5)) for the county or 
        area within which the agricultural land subject to the contract 
        is located.
            (2) Prioritization by secretary.--Before contracts are 
        considered for approval by a county or area committee under 
        paragraph (1), the Secretary may evaluate and prioritize cost-
        share plans prepared under section 313 for farms in the county 
        or area on the basis of the effectiveness of the plans in 
        meeting State and Federal environmental requirements. In 
        conducting the evaluation, the Secretary shall consider 
        recommendations made by the Natural Recourses Conservation 
        Service in conjunction with State and local soil conservation 
        districts. If the Secretary conducts such an evaluation for a 
        county or area, the county or area committee shall first 
        consider for approval those contracts whose accompanying cost-
        share plans are considered by the Secretary to have a higher 
        priority.
    (d) Term of Contract.--The term of a contract under the 
Agricultural Conservation Assistance Program may not exceed five years, 
except that the Secretary may enter into a longer contract if the 
Secretary determines that a longer contract term is essential to 
accomplish one of the purposes specified in subsection (a).
    (e) Owner and Operator Responsibilities.--Under the terms of a 
contract under the Agricultural Conservation Assistance Program, the 
owner or operator entering into the contract shall agree to comply with 
the terms and conditions of the cost-share plan prepared by the owner 
or operator under section 313.

SEC. 313. COST-SHARE PLANS.

    (a) Submission of Cost-Share Plan.--To be eligible to enter into a 
contract under the Agricultural Conservation Assistance Program, an 
owner or operator shall prepare and submit to the Secretary of 
Agriculture a plan of farming operations or land use practices that 
incorporates such soil and water conservation practices and principles 
as may be determined by the Secretary to be practicable to achieve the 
purposes for which the assistance is provided.
    (b) Use of Existing Plans.--For purposes of satisfying the 
requirements of subsection (a), at the option of the owner or operator, 
the owner or operator may rely on a conservation plan developed 
pursuant to section 1212 of the Food Security Act of 1985 (16 U.S.C. 
3812) or any other conservation or natural resource plan required for 
participation in any program within the jurisdiction of the Secretary.

SEC. 314. FINANCIAL ASSISTANCE UNDER CONTRACT.

    (a) Determination of Amount.--Subject to subsections (b) and (c), 
the amount of financial assistance that may be provided under a 
contract under the Agricultural Conservation Assistance Program shall 
be such portion of the cost of planning, developing, or implementing 
the eligible practice described in the contract as the Secretary of 
Agriculture determines to be necessary to achieve the purposes for 
which the assistance is provided. In determining the level of 
assistance, the Secretary shall consider--
            (1) the amount of expected conservation or environmental 
        benefit accruing to society;
            (2) the total cost of carrying out the eligible practice;
            (3) the degree to which appropriate eligible practices will 
        be implemented in the absence of financial assistance under the 
        Agricultural Conservation Assistance Program; and
            (4) in order to avoid duplication of assistance, the degree 
        to which the owner or operator benefits from other public 
        conservation programs.
    (b) Cost-Share Requirement.--The Federal share of cost-sharing 
payments under a contract under the Agricultural Conservation 
Assistance Program shall not exceed 50 percent of the total cost of the 
eligible practice covered by the contract, as determined by the 
Secretary. However, the Secretary may exceed the percentage limitation 
if the Secretary determines that a larger Federal share is essential to 
accomplish one of the purposes specified in section 312(a), except that 
in no case may the Federal share exceed 75 percent.
    (c) Per Person Limitation on Financial Assistance.--The total 
annual amount of payments to a person under one or more contracts under 
the Agricultural Conservation Assistance Program may not exceed $5,000. 
However, the Secretary may exceed the limitation on the annual amount 
of payments on a case-by-case basis if the Secretary determines that a 
larger payment is essential to accomplish one of the purposes specified 
in section 312(a).
    (d) Time for Payment.--In the case of multiyear contract under the 
Agricultural Conservation Assistance Program, the Secretary may make 
the entire Federal payment under the contract in the first year of the 
contract to advance implementation of the eligible practice for which 
the payment is being made. Payments may not be made beyond the term of 
the contract.
    (e) Treatment of Payments.--Payments under the Agricultural 
Conservation Assistance Program shall be treated in the same manner as 
payments made under the agricultural conservation program authorized by 
the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590a et 
seq.), as in effect on the day before the date of the enactment of this 
Act.

SEC. 315. TERMINATION OF CONTRACTS.

    (a) Termination for Violation.--The Secretary may terminate a 
contract entered into with an owner or operator under the Agricultural 
Conservation Assistance Program if--
            (1) the owner or operator agrees to such termination; or
            (2) the owner or operator violates the terms and conditions 
        of the contract.
    (b) Voluntary Modification or Termination.--An owner or operator of 
a livestock operation who enters into a contract under the Agricultural 
Conservation Assistance Program may modify or terminate the contract 
with the consent of the Secretary.
    (c) Repayment.--On the violation of a term or condition of the 
contract under the Agricultural Conservation Assistance Program at any 
time by the owner or operator, the owner or operator shall refund any 
cost-sharing payment already received under section 314 and forfeit any 
future payments under the contract. On the transfer of the right and 
interest of an owner in land subject to the contract, the owner shall 
refund all cost-sharing payments received by the owner under the 
contract unless the transferee of the right and interest agrees to 
assume all obligations of the owner under the contract.

SEC. 316. AUTHORIZATION OF APPROPRIATIONS; REGULATIONS.

    (a) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to carry out this part 
during each of the fiscal years 1997 through 2002.
    (b) Final Regulations.--Not later than 120 days after the date of 
the enactment of this Act, the Secretary shall issue regulations to 
implement the Agricultural Conservation Assistance Program.

                     PART 2--CONFORMING AMENDMENTS

SEC. 321. REPEAL OF GREAT PLAINS CONSERVATION PROGRAM.

    (a) Repeal.--Section 16 of the Soil Conservation and Domestic 
Allotment Act (16 U.S.C. 590p) is repealed.
    (b) Conforming Amendments.--(1) 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 ``and the Agricultural 
Conservation Program established under section 16(b) of the Soil 
Conservation and Domestic Allotment Act (16 U.S.C. 590p(b)),''.
    (2) Subparagraph (A) of section 1211(3) of the Food Security Act of 
1985 (16 U.S.C. 3811(3)) is amended to read as follows:
                    ``(A) a payment made pursuant to a contract entered 
                into under the Agricultural Conservation Assistance 
                Program established under section 312 of the 
                Conservation Consolidation and Regulatory Reform Act of 
                1996 or the Water Quality Conservation Program 
                established under section 342 of such Act;''.

SEC. 322. REPEAL OF CRITICAL LANDS RESOURCE CONSERVATION PROGRAM IN 
              GREAT PLAINS AREA.

    Section 1511 of the Food and Agriculture Act of 1977 (16 U.S.C. 
590q-3) is repealed.

SEC. 323. REPEAL OF AGRICULTURAL CONSERVATION PROGRAM.

    (a) Repeal.--The Soil Conservation and Domestic Allotment Act (16 
U.S.C. 590a et seq.) is repealed, except for sections 1, 2, 6, 8(b)(5), 
and 17(b) of such Act (16 U.S.C. 590a, 590b, 590f, 590h(b)(5), and 
590q(b)).
    (b) Conforming Amendments.--(1) Section 22(a) of the Agricultural 
Adjustment Act (7 U.S.C. 624(a)), reenacted with amendments by the 
Agricultural Marketing Agreement Act of 1937, is amended by striking 
``or the Soil Conservation and Domestic Allotment Act, as amended,''.
    (2) Section 6(b) of the Department of Agriculture Organic Act of 
1956 (16 U.S.C. 590h-4) is repealed.
    (3) Section 2 of the Act of December 20, 1944 (12 U.S.C. 1150a) is 
amended by striking ``sections 7 to 17 of the Soil Conservation and 
Domestic Allotment Act;''.

SEC. 324. MODIFICATION OF DEPARTMENT INVOLVEMENT IN COLORADO RIVER 
              BASIN SALINITY CONTROL PROGRAM.

    Section 202(c) of the Colorado River Basin Salinity Control Act (43 
U.S.C. 1592(c)) is amended by striking paragraph (1) and inserting the 
following:
    ``(1) The Secretary of Agriculture shall implement salinity control 
measures, including watershed enhancement and cost-sharing efforts with 
livestock and crop producers, as part of the Agricultural Conservation 
Assistance Program established under section 312 of the Conservation 
Consolidation and Regulatory Reform Act of 1996.''.

SEC. 325. REPEAL OF RURAL ENVIRONMENTAL CONSERVATION PROGRAM.

    Title X of the Agricultural Act of 1970 (16 U.S.C. 1501 et seq.) is 
repealed.

SEC. 326. REPEAL OF WATER QUALITY INCENTIVE PROJECTS.

    (a) Repeal.--Chapter 2 of subtitle D of title XII of the Food 
Security Act of 1985 (16 U.S.C. 3838-3838F) is repealed.
    (b) Conforming Amendments.--Such title is further amended--
            (1) in section 1211(3) (16 U.S.C. 3811(3)), by striking 
        subparagraph (D);
            (2) in section 1231(b)(4)(A) (16 U.S.C. 3831(b)(4)(A)), by 
        striking ``the water quality incentives program established 
        under chapter 2'' and inserting ``a contract entered into under 
        the Agricultural Conservation Assistance Program established 
        under section 312 of the Conservation Consolidation and 
        Regulatory Reform Act of 1996''; and
            (3) in section 1245 (16 U.S.C. 3845)--
                    (A) in subsection (a), by striking ``chapters 1 and 
                2 of subtitle D.'' and the second sentence and 
                inserting ``chapter 1 of subtitle D.''; and
                    (B) in subsection (b), by striking ``chapters 1 and 
                2 of subtitle D'' and inserting ``chapter 1 of subtitle 
                D''.

SEC. 327. REPEAL OF TREE PLANTING INITIATIVE.

    Section 1256 of the Food Security Act of 1985 (Public Law 99-198; 
16 U.S.C. 2101 note) is repealed.

SEC. 328. REPEAL OF INTEGRATED FARM MANAGEMENT PROGRAM OPTION.

    Section 1451 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 5822) is repealed.

SEC. 329. REPEAL OF SPECIAL AREAS CONSERVATION PROGRAM AND RESERVOIR 
              SEDIMENTATION PROGRAM.

    Subtitles A, B, and F and section 1552 of title XV of the 
Agriculture and Food Act of 1981 (16 U.S.C. 3401-3420, 3441-3445, 3471) 
are repealed.

SEC. 330. REPEAL OF SMALL WATERSHED EASEMENT PURCHASE AUTHORITY.

    Section 3A of the Watershed Protection and Flood Prevention Act (16 
U.S.C. 1003a) is repealed.

SEC. 331. REPEAL OF FINANCIAL ASSISTANCE PROGRAMS UNDER COOPERATIVE 
              FORESTRY ASSISTANCE ACT OF 1978.

    (a) Repeals.--Sections 4, 6, and 7 of the Cooperative Forestry 
Assistance Act of 1978 (16 U.S.C. 2103, 2103b, 2103c) are repealed.
    (b) Conforming Amendments.--The Cooperative Forestry Assistance Act 
of 1978 is further amended--
            (1) in section 12(a) (16 U.S.C. 2108(a)), by striking 
        ``money appropriated under section 4 of this Act or''; and
            (2) in section 19(b)(2) (16 U.S.C. 2113(b)(2))--
                    (A) by inserting ``and'' after the semicolon in 
                subparagraph (B);
                    (B) by striking ``; and'' at the end of 
                subparagraph (C) and inserting a period; and
                    (C) by striking subparagraph (D).

SEC. 332. REPEAL OF WATER BANK ACT.

    The Water Bank Act (16 U.S.C. 1301-1311) is repealed.

SEC. 333. EFFECTIVE DATE OF REPEALS.

    (a) Effective Date.--The amendments made by this part shall take 
effect on September 30, 1996.
    (b) Effect of Repeal.--The amendments made by this part shall not 
affect the validity of any contract or agreement, or the terms and 
conditions of such a contract or agreement, entered into before the 
effective date of the amendments under a provision of law repealed by 
this part.

Subtitle B--Water Quality Conservation Program for Livestock Operations

SEC. 341. PURPOSE OF SUBTITLE AND DEFINITIONS.

    (a) Purpose.--It is the purpose of this subtitle to establish a 
program under section 342 that, in a manner maximizing environmental 
benefits per dollar expended, provides to the owners and operators of 
livestock operations--
            (1) flexible technical and financial assistance to address 
        the most serious threats to water quality;
            (2) assistance in complying with title XII of the Food 
        Security Act of 1985 (16 U.S.C. 3801 et seq.) and Federal and 
        State environmental laws, and to encourage environmental 
        enhancement; and
            (3) a consolidated and simplified conservation planning 
        process to reduce administrative burdens on the owners and 
        operators of livestock operations.
    (b) Definitions.--For purposes of this subtitle:
            (1) Livestock water quality conservation program.--The term 
        ``Livestock Water Quality Conservation Program'' means the 
        program established under section 342 to provide technical and 
        financial assistance to the owners and operators of livestock 
        operations to protect or improve water quality and enhance 
        environmental protection.
            (2) Livestock.--The term ``livestock'' means dairy or beef 
        cattle, laying hens, broilers, turkeys, swine, sheep, lambs, 
        and such other animals as the Secretary of Agriculture 
        considers appropriate.
            (3) Livestock operation.--The term ``livestock operation'' 
        means a farm, ranch, or other facility used for the purpose of 
        livestock production.
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.
            (5) Eligible practice.--The term ``eligible practice'' 
        means the establishment of an animal waste management facility, 
        terrace, grassed waterway, contour grass strip, filterstrip, 
        permanent wildlife habitat, or other activity that the 
        Secretary determines improves or protects water quality in a 
        cost effective manner.

SEC. 342. PROVISION OF TECHNICAL AND FINANCIAL ASSISTANCE FOR WATER 
              QUALITY CONSERVATION FOR LIVESTOCK OPERATIONS.

    (a) Livestock Water Quality Conservation Program.--During fiscal 
years 1996 through 2002, the Secretary of Agriculture shall carry out a 
program (to be known as the ``Livestock Water Quality Conservation 
Program'') to provide technical and financial assistance to the owners 
and operators of livestock operations who request such assistance to 
plan, develop, and implement eligible practices in connection with such 
livestock operations intended to protect or improve water quality and 
enhance environmental protection.
    (b) Contracts.--Subject to subsection (e), the Secretary shall 
provide assistance under the Livestock Water Quality Conservation 
Program on the basis of a contract between the Secretary and an owner 
or operator of a livestock operation. The Secretary may not enter into 
a contract with an operator who is not also owner of the livestock 
operation unless the actual owner concurs in the contract.
    (c) Types of Assistance.--Under a contract entered into under 
subsection (b), the Secretary may provide the owner or operator of a 
livestock operation who implements a eligible practice with technical 
assistance and cost-sharing payments.
    (d) Application and Term.--A contract entered into under subsection 
(b) may apply to one or more eligible practices. The contract shall 
have a term of not more than 10 years, as determined appropriate by the 
Secretary based on the eligible practice or practices that are the 
basis of the contract.
    (e) Approval by County or Area Committee.--Each contract under 
subsection (b) shall be subject to the approval of the county or area 
committee established under section 8(b)(5) of the Soil Conservation 
and Domestic Allotment Act (16 U.S.C. 590h(b)(5)) for the county or 
area within which the livestock operation subject to the contract is 
located. In considering contracts for approval, the county or area 
committee shall first consider for approval those contracts that are 
given a higher priority by the Secretary under section 344.

SEC. 343. ASSISTANCE UNDER CONTRACT.

    (a) Cost-Sharing Payments.--The Federal share of cost-sharing 
payments under a contract under the Livestock Water Quality 
Conservation Program to implement one or more eligible practices shall 
not exceed 75 percent of the total cost of the practice or practices, 
as determined by the Secretary of Agriculture. The Secretary may 
further reduce the Federal share on account of payments received by the 
owner or operator from a State or local government for the same 
eligible practice.
    (b) Technical Assistance.--
            (1) Funding.--The Secretary shall allocate funding under 
        this subtitle for the provision of technical assistance 
        according to the purpose and projected cost for which the 
        technical assistance is provided in a fiscal year. The 
        allocated amount may vary according to the type of expertise 
        required, quantity of time involved, and other factors as 
        determined appropriate by the Secretary. Funding shall not 
        exceed the projected cost to the Secretary of the technical 
        assistance provided in a fiscal year.
            (2) Other authorities.--The receipt of technical assistance 
        under this subtitle shall not affect the eligibility of an 
        owner or operator of a livestock operation to receive technical 
        assistance under other authorities of law available to the 
        Secretary.
    (c) 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 an eligible 
practice.
    (d) Limitations on Payments.--The total amount of cost-sharing 
payments made to a person under the Livestock Water Quality 
Conservation Program may not exceed--
            (1) $10,000 for any fiscal year; or
            (2) $50,000 for any multiyear contract.
    (e) Treatment of Payments.--Payments under the Livestock Water 
Quality Conservation Program shall be treated in the same manner as 
payments made under the agricultural conservation program authorized by 
the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590a et 
seq.), as in effect on the day before the date of the enactment of this 
Act.

SEC. 344. PRIORITIES IN EVALUATION OF CONTRACT OFFERS.

    In evaluating contract offers under the Livestock Water Quality 
Conservation Program, the Secretary of Agriculture shall accord a 
higher priority to eligible practices for lands on which livestock 
production has been determined to contribute to, or create, the 
potential for failure to meet applicable water quality standards or 
other environmental objectives of a Federal or State law. In evaluating 
the contract offers, and the accompanying water quality plan prepared 
under section 345, the Secretary shall consider recommendations made by 
the Natural Recourses Conservation Service in conjunction with State 
and local soil conservation districts.

SEC. 345. WATER QUALITY PLANS.

    (a) Water Quality Plan Required.--To be eligible to enter into a 
contract under the Livestock Water Quality Conservation Program, an 
owner or operator of a livestock operation shall prepare and submit to 
the Secretary of Agriculture a plan of livestock operations that 
incorporates such water quality conservation practices and principles 
as may be determined by the Secretary to be practicable to achieve the 
purposes for which the assistance is provided.
    (b) Use of Existing Plans.--For purposes of satisfying the 
requirements of subsection (a), at the option of the owner or operator, 
the owner or operator may rely on a conservation plan developed 
pursuant to section 1212 of the Food Security Act of 1985 (16 U.S.C. 
3812) or any other conservation or natural resource plan required for 
participation in any program within the jurisdiction of the Secretary.

SEC. 346. MODIFICATION AND TERMINATION OF CONTRACTS.

    (a) Termination for Violation.--The Secretary of Agriculture may 
terminate a contract entered into with an owner or operator of a 
livestock operation under the Livestock Water Quality Conservation 
Program if the owner or operator violates the terms and conditions of 
the contract.
    (b) Voluntary Modification or Termination.--An owner or operator of 
a livestock operation who enters into a contract under the Livestock 
Water Quality Conservation Program may modify or terminate the contract 
with the consent of the Secretary.
    (c) Repayment.--On the violation of a term or condition of the 
contract under the Livestock Water Quality Conservation Program at any 
time by the owner or operator of a livestock operation, the owner or 
operator shall refund any financial assistance received under section 
344 and forfeit any future payments under the contract. On the transfer 
of the right and interest of an owner in land subject to the contract, 
the owner shall refund all financial assistance received by the owner 
under the contract unless the transferee of the right and interest 
agrees to assume all obligations of the owner under the contract.

SEC. 347. USE OF FUNDS OF COMMODITY CREDIT CORPORATION.

    Notwithstanding any other law, the Secretary of Agriculture shall 
allocate $380,000,000 of the funds of the Commodity Credit Corporation 
for the seven-fiscal year period beginning on October 1, 1995, to carry 
out the Livestock Water Quality Conservation Program.

SEC. 348. REGULATIONS.

    Not later than 180 days after the date of the enactment of this 
Act, the Secretary of Agriculture shall issue regulations to implement 
the Livestock Water Quality Conservation Program.

           Subtitle C--Highly Erodible Cropland Conservation

SEC. 351. 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 new 
        paragraphs:
            ``(2) Conservation plan.--The term `conservation plan' 
        means the document that--
                    ``(A) applies to highly erodible cropland;
                    ``(B) implements the conservation system applicable 
                to such highly erodible cropland and contains 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 one or more conservation measures or 
        management practices that--
                    ``(A) are based upon 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.--Paragraph (7) of such section, as redesignated by 
subsection (a)(1), is amended to read as follows:
            ``(7) Field.--The term `field' means a part of a farm which 
        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 such 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 such land was included on December 
        23, 1985, unless the Secretary permits modification of the 
        boundaries of the field to carry out this title.''.
    (c) Highly Erodible Land.--Paragraph (9) of such section, as 
redesignated by subsection (a)(1), is amended by adding at the end the 
following new subparagraph:
            ``(C) Not later than 60 days after the date of the 
        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 such 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 such Act (16 U.S.C. 
3812) is amended--
            (1) in subsection (a)(2), by striking ``that documents the 
        decisions of the person with respect to location, land use, 
        tillage systems, and conservation treatment measures and 
        schedule and that is based on the local Soil Conservation 
        Service technical guide and 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'';
            (2) in subsection (c)(3), by striking ``based on the local 
        Soil Conservation Service technical guide and 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'';
            (3) in subsection (e)(1)(A), by striking ``conservation 
        compliance plan'' and inserting ``conservation plan'';
            (4) in subsection (f)(1), by striking ``that documents the 
        decisions of such person with respect to location, land use, 
        tillage systems, and conservation treatment measures and 
        schedules prepared under subsection (a)'';
            (5) in subsection (f)(3), by striking ``prepared under 
        subsection (a)''; and
            (6) in subsection (f)(4), by striking ``that documents the 
        decisions of such person with respect to location, land use, 
        tillage systems, and conservation treatment measures and 
        schedules prepared under subsection (a)''.

SEC. 352. 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 new section:

``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 such 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 upon the level of erosion at 
the time of the measurement compared to the 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 two inches of soil, as well as the growing 
                crop, in such measurement; and
                    ``(B) 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, and certified by a third 
        person approved by the Secretary, shall be used by the 
        Secretary if such measurements indicate that, on the basis of a 
        five-year average, the residue level for the field meets the 
        level required in 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 such 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 such 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, so long as 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 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.--In order to encourage on-
farm conservation research, the Secretary shall 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)(1) of 
the Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 
6932(d)(1)) is amended by adding at the end the following new sentence: 
``In the case of a technical determination of the Natural Resources 
Conservation Service regarding use of a conservation system under 
subtitle B of title XII of the Food Security Act of 1985 (16 U.S.C. 
3811 et seq.), the Consolidated Farm Service Agency may overrule the 
determination if the Agency determines that strict application of the 
determination causes undue economic hardship on the person using the 
conservation system.''.
    (c) Provision of Technical Assistance by Other Sources.--Section 
1243 of the Food Security Act for 1985 (16 U.S.C. 3843) is amended by 
adding at the end the following new subsection:
    ``(g) 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 Secretary's 
determination must be supported by clear and convincing evidence.''.

SEC. 353. 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 pest and disease problems''; and
            (2) by adding at the end the following new paragraph:
            ``(5) 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 
        such paragraph involves the use of practices or measures to 
        control pests or disease problems, the Secretary shall make a 
        decision on whether to grant the variance within 30 days of 
        receiving the request. If the Secretary fails to render a 
        decision within that time period, the temporary variance shall 
        be deemed to have been granted.''.

SEC. 354. GOOD FAITH EXEMPTION.

    (a) Grace Period To Resume Conservation Compliance.--Paragraph (1) 
of section 1212(f) of the Food Security Act of 1985 (16 U.S.C. 3812(f)) 
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: ``such person has acted in good faith and 
        without the intent to violate the provisions of this subtitle. 
        A person who meets the requirements of this paragraph shall be 
        allowed a period of one year in 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.--
Paragraph (2) of such section 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, has acted in good faith and without the intent to violate such 
provisions''.
    (c) Conforming Amendment.--Paragraph (4) of such section is amended 
by striking the last sentence.

SEC. 355. 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. 356. INVESTIGATION OF POSSIBLE COMPLIANCE DEFICIENCIES.

    Subtitle B of title XII of the Food Security Act of 1985 is amended 
by adding at the end the following new section:

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

    ``(a) Special Rule During Provision of On-Site Technical 
Assistance.--Employees of the Department of Agriculture who observe 
possible compliance deficiencies or other potential violations of a 
conservation plan or provision of this subtitle while providing on-site 
technical assistance shall provide to the responsible persons, within 
45 days, information regarding those actions needed in order to come 
into compliance. The employees shall provide this information in lieu 
of reporting the observations as compliance violations. The person 
shall attempt to correct such deficiencies as soon as practicable. If 
such corrective action is not fully implemented within 1 year, a review 
of the status of compliance of the person with the conservation plan 
may then be conducted.
    ``(b) Notice of Possible Violations.--Any interested person (other 
than an employee of an agency of the Department of Agriculture 
administering this Act) may file, in accordance with rules prescribed 
by the Secretary, a written complaint of possible compliance 
deficiencies or other potential violations of a conservation plan or 
provision of this subtitle. The identity of any person filing a 
complaint under this subsection shall be considered to be confidential 
information. The identity of such person, and any portion of the 
complaint to the extent that it would indicate the identity of such 
person, are specifically exempt from disclosure under section 552 of 
title 5, United States Code (commonly known as the Freedom of 
Information Act), as provided in subsection (b)(3) of such section. The 
Secretary is not required to take action on complaints or allegations 
that are anonymous or are not submitted in writing.
    ``(c) Investigation of Complaints.--
            ``(1) Commencing or expanding an investigation.--If there 
        appears to be, in the opinion of the Secretary, reasonable 
        grounds for investigating a complaint or allegation made under 
        subsection (b), the Secretary may commence an investigation of 
        the alleged violation of a conservation plan or provision of 
        this subtitle specified in the complaint or allegation. In the 
        course of the investigation, if the Secretary determines that 
        violations are indicated other than the alleged violations 
        specified in the complaint or allegation, the Secretary may 
        expand the investigation to include such additional violations.
            ``(2) Issuance of formal complaint by secretary; process.--
        In the opinion of the Secretary, if an investigation under this 
        subsection substantiates the existence of violations of a 
        conservation plan or provision of this subtitle, the Secretary 
        may cause a formal complaint to be issued. The Secretary shall 
        have the complaint served by registered mail or certified mail 
        or otherwise on the person concerned and afford such person an 
        opportunity for a hearing on the complaint.
    ``(d) Notification Requirements Regarding Subject of Complaint.--
Whenever the Secretary initiates an investigation on the basis of a 
complaint or allegation made under subsection (b) or expands such an 
investigation, the Secretary shall promptly notify the subject of the 
investigation of the existence of the investigation and the nature of 
the alleged violations of this subtitle to be investigated. Not later 
than 180 days after providing the initial notification, the Secretary 
shall provide the subject of the investigation with notice of the 
status of the investigation, including whether the Secretary intends to 
issue a complaint under subsection (c)(2), terminate the investigation, 
or continue or expand the investigation. The Secretary shall provide 
additional status reports at the request of the subject of the 
investigation and shall promptly notify the subject of the 
investigation whenever the Secretary terminates the investigation.''.

SEC. 357. EXPIRATION OF AUTHORITY.

    Subtitle B of title XII of the Food Security Act of 1985 is amended 
by inserting after section 1215, as added by section 407, the following 
new section:

``SEC. 1216. EXPIRATION OF SUBTITLE.

    ``The authorities and requirements contained in this subtitle shall 
not apply after December 31, 2002, and any program ineligibility in 
effect under section 1211 as of that date shall expire on that date.''.

     Subtitle D--Environmental Conservation Acreage Reserve Program

SEC. 361. 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.--The Secretary shall ensure, 
        to the maximum extent practicable, that of the total number of 
        acres enrolled in the wetlands reserve program--
                    ``(A) one-third of the acres are enrolled through 
                the use of permanent easements;
                    ``(B) one-third of the acres are enrolled through 
                the use of 30-year easements (or easements of a shorter 
                period if required under applicable State laws); and
                    ``(C) one-third of the acres are enrolled through 
                the use of restoration cost-share agreements authorized 
                under section 1237A(h).''.
            ``(3) Temporary emphasis on certain enrollment methods.--To 
        achieve the enrollment ratios specified in paragraph (2), the 
        Secretary shall endeavor, to the maximum extent practicable, to 
        rely on the enrollment methods described in subparagraphs (B) 
        and (C) of paragraph (2) to enroll lands in the wetlands 
        reserve program until such time as enrollments under each such 
        subparagraph accounts for approximately one-third of all lands 
        enrolled in the wetlands reserve.''
    (b) Eligibility.--Section 1237(c) of the Food Security Act of 1985 
(16 U.S.C. 3837(c)) is amended by striking ``2000'' and inserting 
``2002''.
    (c) Easements and Restoration Cost-Share Agreements.--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 restoration cost-share 
        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.'';
            (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 in the wetland reserve program through agreements that require the 
landowner to restore wetlands on the land, if the agreement does not 
provide the Secretary with an easement. Other than cost share and 
technical assistance provided under section 1237C(b), the Secretary may 
not provide compensation for an agreement under this subsection.''.
    (d) 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.--In the case of an easement entered into 
        during the 1996 through 2002 calendar years, in making cost 
        share payments under subsection (a)(1), the Secretary shall--
                    ``(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 1237(A)(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.''.

SEC. 362. ELIMINATION OF CONSULTATION REQUIREMENTS WITH SECRETARY OF 
              THE INTERIOR.

    Section 1242 of the Food Security Act of 1985 (16 U.S.C. 3842) is 
amended--
            (1) by striking ``(a)'' before ``In carrying out''; and
            (2) by striking subsection (b).

SEC. 363. REPEAL OF ENVIRONMENTAL EASEMENT PROGRAM.

    (a) Repeal.--Chapter 3 of subtitle D of title XII of the Food 
Security Act of 1985 (16 U.S.C. 3839-3839d) is repealed.
    (b) Conforming Amendments.--(1) Such title is further amended--
            (A) in section 1211(3) (16 U.S.C. 3811(3)), by striking 
        subparagraph (E);
            (B) in section 1243(f) (16 U.S.C. 3843(f))--
                    (i) in paragraph (1), by striking ``and the 
                Environmental Easement Program under chapter 3, and not 
                more than 10 percent of such cropland may be subject to 
                an easement acquired under those chapters''; and
                    (ii) by striking paragraph (2).
    (2) Subsection (c) of section 1437 of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (Public Law 101-624; 16 U.S.C. 3831 
note) is amended to read as follows:
    ``(c) Extension Authority.--During the 1996 through 2000 calendar 
years, the Secretary of Agriculture may extend up to 10 years contracts 
entered into before November 28, 1990, under 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.) at the option of the owner or operator on land that the 
Secretary has determined under the study conducted under subsection (a) 
should remain in conserving uses.''.

SEC. 364. EFFECT OF AMENDMENTS ON EXISTING EASEMENTS.

    The amendments made by sections 361 and 363 shall not affect the 
validity or terms of any easements acquired 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.) or under 
chapter 3 of such subtitle (16 U.S.C. 3839 et seq.) before the date of 
the enactment of this Act or any payments required to be made in 
connection with such easements.

SEC. 365. CONSERVATION RESERVE PROGRAM.

    (a) Program Extensions.--
            (1) Environmental conservation acreage reserve program.--
        Section 1230(a) of the Food Security Act of 1985 (16 U.S.C. 
        3830(a)) is amended by striking ``1995'' and inserting 
        ``2002''.
            (2) Conservation reserve program.--Section 1231 of the Act 
        (16 U.S.C. 3831) is amended in subsections (a) and (b)(3), by 
        striking ``1995'' each place it appears and inserting ``2002''.
            (3) Duties of owners and operators.--Section 1232(c) of the 
        Act (16 U.S.C. 3832(c)) is amended by striking ``1995'' and 
        inserting ``2002''.
    (b) Maximum Enrollment.--Section 1231(d) of the Food Security Act 
of 1985 (16 U.S.C. 3831(d)) is amended striking ``total of'' and all 
that follows through the period at the end of the subsection and 
inserting ``total of 36,400,000 acres 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 by adding at 
the end the following new subsection:
    ``(e) Termination by Owner or Operator.--
            ``(1) Notice of termination.--An owner or operator of land 
        subject to a contract entered into under this subchapter may 
        terminate the contract by submitting to the Secretary written 
        notice of the intention of the owner or operator to terminate 
        the contract.
            ``(2) Approval of notice.--The Secretary shall accept and 
        approve of the termination of a contract entered into under 
        this subchapter if the Secretary determines that the land 
        subject to the contract is not environmentally sensitive.
            ``(3) Effective date.--Subject to approval by the Secretary 
        under paragraph (2), the contract termination shall take effect 
        60 days after the date on which the owner or operator submits 
        the written notice under paragraph (1).
            ``(4) Prorated rental payment.--Except as provided in 
        paragraph (7), 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 
that the requirements imposed on other lands.
            ``(7) Repayment of cost share.--A person who terminates a 
        contract entered into under this subchapter within less than 3 
        years after entering into the contract shall reimburse the 
        Secretary for any cost share assistance provided under the 
        contract.''.
    (d) Use of Unexpended Funds.--Section 1231 of the Food Security Act 
of 1985 (16 U.S.C. 3831) is amended by adding at the end the following 
new subsection:
    ``(h) Use of Unexpended Funds from Contract Terminations.--If a 
contract entered into under this section is terminated, voluntarily or 
otherwise, before the expiration date specified in the contract, the 
Secretary may use funds, already available to the Secretary to cover 
payments under the contract, but unexpended as a result of the contract 
termination, to enroll other eligible lands in the conservation reserve 
established under this subchapter.''.
    (e) Fair Market Value Rental Rates.--
            (1) In general.--Section 1234(c) of the Food Security Act 
        of 1985 (16 U.S.C. 3834(c)) is amended by adding at the end the 
        following new paragraph:
    ``(5) In the case of a contract covering land which has not been 
previously enrolled in the conservation reserve, annual rental payments 
under the contract may not exceed the average fair market rental rate 
for comparable lands in the county in which the lands are located. This 
paragraph shall not apply to the extension of an existing contract.''.
            (2) Application of amendment.--The amendment made by 
        paragraph (1) shall apply with respect to contracts for the 
        enrollment of lands in the conservation reserve program under 
        section 1231 of the Food Security Act of 1985 (16 U.S.C. 3831)) 
        entered into after the date of the enactment of this Act.

                Subtitle E--Wetland Conservation Reform

SEC. 371. RESTATEMENT OF 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 (d); 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) Persons Covered.--This section shall apply with respect to 
any person who is a party to a production flexibility contract under 
the Agricultural Market Transition Act or who participates in an annual 
program under title I of such Act after January 1, 1996.
    ``(b) Ineligibility.--Except as provided in this subtitle and 
notwithstanding any other provision of law, any person described in 
subsection (a) who produces during the 1996 crop year or thereafter 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.
    ``(c) Loans and Payments.--If a person has been determined to have 
committed a violation during a crop year under subsection (b), the 
Secretary shall determine which, and the amount, of the following loans 
and payments for which the person shall be ineligible:
            ``(1) 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 farm storage facility loan made under section 4(h) 
        of the Commodity Credit Corporation Charter Act (15 U.S.C. 
        714b(h)).
            ``(3) A loan made, insured, 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.
            ``(4) A payment under section 4 or 5 of the Commodity 
        Credit Corporation Charter Act (15 U.S.C. 714b and 714c) during 
        the crop year for the storage of an agricultural commodity 
        acquired by the Commodity Credit Corporation.
            ``(5) During the crop year:
                    ``(A) A payment made pursuant to a contract entered 
                into under the Agricultural Conservation Assistance 
                Program established under section 312 of the 
                Conservation Consolidation and Regulatory Reform Act of 
                1996 or the Water Quality Conservation Program 
                established under section 342 of such Act.
                    ``(B) A payment under section 401 or 402 of the 
                Agricultural Credit Act of 1978 (16 U.S.C. 2201 and 
                2202).
                    ``(C) A payment under subtitle D.
                    ``(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) Subsection (d) of such section (as 
redesignated by subsection (a)(1)) is amended--
            (A) by striking ``Except'' and inserting ``Wetland 
        Conversion.--Except''; and
            (B) by striking ``subsections (a) (1) through (3)'' and 
        inserting ``subsection (c)''.
    (2) Such section is further amended by adding at the end the 
following new subsection:
    ``(e) Prior Loans.--This section shall not apply to a loan 
described in subsection (c) made before December 23, 1985.''.

SEC. 372. DELINEATION OF WETLANDS; EXEMPTIONS TO PROGRAM INELIGIBILITY.

    (a) Delineation of Wetlands.--Subsection (a) of section 1222 of the 
Food Security Act of 1985 (16 U.S.C. 3822) is amended to read as 
follows:
    ``(a) Delineation by the Secretary.--
            ``(1) In general.--Subject to subsection (b), 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 an owner or operator, the Secretary shall make a reasonable 
        effort to make an on-site wetland determination prior to 
        delineation.
            ``(3) Certification.--On providing notice to affected 
        owners or operators, 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) 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.''.
    (b) Requests for Delineation.--Such section is further amended--
            (1) by redesignating subsections (b) through (j) as 
        subsections (c) through (k), respectively; and
            (2) by inserting after subsection (a) the following new 
        subsection:
    ``(b) Requests for Delineation.--
            ``(1) In general.--Any delineation or determination of the 
        presence of wetland on subject land on a farm made under this 
        subtitle shall be valid until such time as the owner or 
        operator of the land requests a new delineation or 
        determination.
            ``(2) Change in delineation.--In the case of a change in a 
        delineation or determination, the Secretary shall promptly 
        notify the owner or operator of the subject land on a farm that 
        is affected by the change.
            ``(3) Reliance on prior delineation.--Any action taken with 
        respect to subject land on a farm by an owner or operator in 
        reliance on a prior wetland delineation or determination by the 
        Secretary shall not be subject to a subsequent wetland 
        delineation or determination by the Secretary.''.
    (c) Exemptions.--Subsection (c) of such section (as redesignated by 
subsection (b)(1)) is amended to read as follows:
    ``(c) 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) Land that is an artificially irrigated area 
                that would revert to upland if the irrigation ceased.
                    ``(D) 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.
                    ``(E) A wetland that is temporarily or incidentally 
                created as a result of adjacent development activity.
                    ``(F) Land that contains a wetland one acre or less 
                in size, as determined by the Secretary. The Secretary 
                shall make a reasonable effort to make an on-site 
                wetland inspection whenever requested by an owner or 
                operator requesting this exemption.
            ``(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 previously identified as a 
                converted wetland (if the original conversion of the 
                wetland was commenced before December 23, 1985), but 
                which returned to wetland status after that date as a 
                result of the lack of maintenance of drainage, dikes, 
                levees, or similar structures or as a result of the 
                lack of management of the lands containing the wetland.
                    ``(D) A wetland that is one acre or less in size, 
                as determined by the Secretary. The Secretary shall 
                make a reasonable effort to make an on-site wetland 
                inspection whenever requested by an owner or operator 
                requesting this exemption.''.
    (d) Identification of Minimal Effect Exemptions.--Subsection (e) of 
such section (as redesignated by subsection (b)(1)) is amended to read 
as follows:
    ``(e) Identification of Minimal Effect Exemptions.--For purposes of 
applying the minimal effect exemption under subsection (g)(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 who administer 
this subtitle receive appropriate training to properly apply the 
minimal effect exemptions identified by the Secretary.''.
    (e) Mitigation Exemptions.--Subsection (g)(2) of such section (as 
redesignated by subsection (b)(1)) is amended--
            (1) in the material preceding the subparagraphs, by 
        striking ``where such restoration'' and inserting ``through the 
        enhancement of an existing wetland, or through the creation of 
        a new wetland, and the restoration, enhancement, or creation'';
            (2) in subparagraph (A), by inserting ``, enhancement, or 
        creation'' after ``restoration'';
            (3) in subparagraph (D), by inserting ``in the case of 
        enhancement or restoration of wetlands,'' after ``(D)'';
            (4) by redesignating subparagraphs (E) and (F) as 
        subparagraphs (F) and (G), respectively;
            (5) by inserting after subparagraph (D) the following new 
        subparagraph:
                    ``(E) in the case of creation of wetlands, on 
                greater than a one-for-one 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;''; and
            (6) in subparagraph (G) (as so redesignated)--
                    (A) by striking ``restored'' each place it appears 
                and inserting ``restored, enhanced, or created''; and
                    (B) by striking ``restoration'' and inserting 
                ``restoration, enhancement, or creation''.
    (f) Good Faith Exemption.--Subsection (i) of such section (as 
redesignated by subsection (b)(1)) is amended to read as follows:
    ``(i) 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 subsequent to 
        January 1, 1996, if the Secretary determines that the person 
        has acted in good faith and without intent to violate this 
        subtitle.
            ``(2) Period for compliance.--A person who the Secretary 
        determines has acted in good faith and without intent to 
        violate this subtitle shall be allowed a period of one year 
        during which to implement the measures and practices necessary 
to be considered to actively restoring the subject wetland.''.
    (g) Determinations.--Subsection (k) of such section (as 
redesignated by subsection (b)(1)) is amended--
            (1) in paragraph (1)--
                    (A) in the first sentence, by striking ``and a 
                representative of the Fish and Wildlife Service''; and
                    (B) in the second sentence, by striking ``, who 
                in'' and all that follows through ``Service''; and
            (2) in paragraph (2), by striking ``and a representative'' 
        and all that follows through ``national offices'' and inserting 
        ``shall report to the Natural Resources Conservation Service''.
    (h) Mitigation Banking.--Such section is further amended by adding 
at the end the following new subsection:
    ``(l) Mitigation Banking Program.--The Secretary shall establish a 
pilot program for mitigation banking of wetlands to assist owners and 
operators in complying with the wetland conservation requirements of 
this subtitle.''.

SEC. 373. REPEAL OF CONSULTATION REQUIREMENT WITH SECRETARY OF THE 
              INTERIOR.

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

SEC. 374. APPLICATION OF PROGRAM INELIGIBILITY TO AFFILIATED PERSONS.

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

``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.''.

                      TITLE IV--AGRICULTURAL TRADE

               Subtitle A--Public Law 480 and Related Law

SEC. 401. FOOD ASSISTANCE TO DEVELOPING COUNTRIES.

    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 ASSISTANCE TO DEVELOPING COUNTRIES.

    ``It is the sense of Congress that--
            ``(1) the United States should maintain its role of world 
        leadership in promoting food security and economic development 
        in developing countries; and
            ``(2) the President should encourage other advanced nations 
        to consider appropriate levels of food assistance to meet the 
        legitimate needs of developing countries.''.

SEC. 402. 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)--
                    (A) by striking ``To carry out'' and all that 
                follows through ``section 2, the'' and inserting 
                ``The''; and
                    (B) by inserting ``and entities'' before the period 
                at the end.

SEC. 403. 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) In general.--If there is in effect for a country a 
        market development plan approved by the Secretary, for the 
        purposes of the priority set forth in subsection (a), the 
        Secretary shall deem that country to have the demonstrated 
        potential to become a commercial market for competitively 
        priced United States agricultural commodities. However, not 
        more than 50 percent of the agricultural commodities sold under 
        this title during a fiscal year shall be granted the priority 
        because this deeming rule applies.
            ``(2) Requirements.--To be approved by the Secretary, the 
        agricultural market development plan shall--
                    ``(A) be submitted by a country or private entity 
                in conjunction with an agricultural trade organization;
                    ``(B) describe a project or program, designed with 
                the cooperation of the agricultural trade organization, 
                for the development and expansion of United States 
                agricultural commodity markets in the appropriate 
                developing country;
                    ``(C) use funds raised from the sale of 
                agricultural commodities received under agreements 
                under section 101;
                    ``(D) be implemented and administered in 
                coordination with the agricultural trade organization; 
                and
                    ``(E) contain additional requirements determined 
                necessary by the Secretary.
            ``(3) Agricultural trade organization.--For purposes of 
        this subsection, the term `agricultural trade organization' 
        means a United States agricultural trade organization that 
        promotes the export and sale of United States agricultural 
        commodities and that does not stand to profit directly from 
        specific sales of agricultural commodities.''.

SEC. 404. 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 
                ``recipient''; and
                    (B) by striking ``7 years'' and inserting ``5 
                years''.

SEC. 405. USE OF LOCAL CURRENCY.

    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 ``recipient''; and
            (2) in subsection (c)--
                    (A) by striking ``recipient country'' and inserting 
                ``appropriate developing country'' each place it 
                appears; and
                    (B) by striking ``recipient countries'' and 
                inserting ``appropriate developing countries''.

SEC. 406. PROVISION OF AGRICULTURAL COMMODITIES.

    Section 202(e) of the Agricultural Trade Development and Assistance 
Act of 1954 (7 U.S.C. 1722(e)) is amended--
            (1) in the subsection heading, by inserting 
        ``Intergovernmental Organizations,'' after ``Support for'';
            (2) in paragraph (1)--
                    (A) by striking ``$13,500,000'' and inserting 
                ``$28,000,000''; and
                    (B) by striking ``private voluntary organizations 
                and cooperatives to assist such organizations and 
                cooperatives'' and inserting ``eligible organizations 
                described in subsection (d), to assist those 
                organizations''; and
            (3) in paragraphs (2) and (3), by striking ``a private'' 
        each place it appears and inserting ``an intergovernmental 
        organization, private''.

SEC. 407. EFFECTIVE USE OF COMMODITIES.

    Section 202(f) of the Agricultural Trade Development and Assistance 
Act of 1954 (7 U.S.C. 1722(f)) is amended--
            (1) by striking the period at the end of paragraph (6) and 
        inserting ``; and''; and
            (2) by adding at the end the following:
            ``(7) be permitted to carry out a program under this 
        title--
                    ``(A) in a foreign country in which the Agency for 
                International Development does not have a mission, 
                office, or other presence; or
                    ``(B) that is not part of the developmental 
                strategy prepared by such Agency for the country in 
                which the program is carried out.''

SEC. 408. MONETIZATION.

    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 the recipient country''; and
                    (B) by striking ``10 percent'' and inserting ``15 
                percent''; and
            (3) in subsection (c), by inserting ``of within a country 
        in the same region'' after ``within the recipient country''.

SEC. 409. GENERAL LEVELS OF ASSISTANCE UNDER PUBLIC LAW 480.

    Section 204(a) of the Agricultural Trade Development and Assistance 
Act of 1954 (7 U.S.C. 1724(a)) is amended--
            (1) in paragraph (1), by striking ``amount that'' and all 
        that follows through the period at the end and inserting 
        ``amount that for each of fiscal years 1996 through 2002 is not 
        less than 2,025,000 metric tons.''; and
            (2) in paragraph (2), by striking ``amount that'' and all 
        that follows through the period at the end and inserting 
        ``amount that for each of fiscal years 1996 through 2002 is not 
        less than 1,550,000 metric tons.''.

SEC. 410. USE OF VALUE ADDED COMMODITIES.

    Section 204(b)(1) of the Agricultural Trade Development and 
Assistance Act of 1954 (7 U.S.C. 1724(e)) is amended by inserting ``and 
that not less than 50 percent of the quantity of such bagged 
commodities that are whole grain commodities shall be bagged in the 
United States'' before the period at the end.

SEC. 411. FOOD AID CONSULTATION GROUP.

    (a) Membership.--Section 205(b)(2) of the Agricultural Trade 
Development and Assistance Act of 1954 (7 U.S.C. 1725(b)(2)) is amended 
by striking ``International Affairs and Commodity Programs'' and 
inserting ``Agriculture for Farm and Foreign Agricultural Services''.
    (b) Expiration Date.--Section 205(f) of the Agricultural Trade 
Development and Assistance Act of 1954 (7 U.S.C. 1725(f)) is amended by 
striking ``1995'' and inserting ``2002''.

SEC. 412. FOOD FOR DEVELOPMENT.

    Sections 301(b) and 303 of the Agricultural Trade Development and 
Assistance Act of 1954 (7 U.S.C. 1727(b) and 1727b) are each amended by 
striking ``To carry out'' and all that follows through ``section 2, 
the'' and inserting ``The''.

SEC. 413. 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. 414. GENERAL PROVISIONS.

    Section 403 of the Agricultural Trade Development and Assistance 
Act of 1954 (7 U.S.C. 1733) is amended--
            (1) in subsection (c)--
                    (A) by inserting ``or private entities, as 
                appropriate,'' after ``commitments from countries''; 
                and
                    (B) by striking ``for use'' and inserting ``or 
                use''; and
            (2) in subsection (f), by inserting ``or private entities 
        as appropriate,'' after ``from countries''.

SEC. 415. 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) so that subsection (c)(1) reads as follows:
            ``(1) In general.--
                    ``(A) Titles i and iii.--Agreements to provide 
                assistance on a multi-year basis under titles I and III 
                may be made available to recipient countries or to 
                eligible organizations.
                    ``(B) Title ii.--Agreements to provide assistance 
                on a multi-year basis shall be made available to 
                recipient countries and to eligible organizations.''.

SEC. 416. 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)(1), by inserting ``or private 
        entity'' after ``importing country'';
            (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''; and
            (3) by striking subsection (h).

SEC. 417. 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. 418. REPEAL OF SECTIONS 409 AND 410.

    Sections 409 and 410 of the Agricultural Trade Development and 
Assistance Act of 1954 (7 U.S.C. 1736c and 1736d) are repealed.

SEC. 419. USE OF LOCAL CURRENCY IN TITLE V.

    Section 501(a)(6) of the Agricultural Trade Development and 
Assistance Act of 1954 (7 U.S.C. 1737(a)(6)) is amended--
            (1) by striking ``practicable'', and all that follows 
        through ``under this section'' and inserting ``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''; and
            (2) by inserting ``, within the country where the program 
        is conducted'' before the period at the end.

SEC. 420. TITLE V FUNDING LEVEL.

    Section 501(c) of the Agricultural Trade Development and Assistance 
Act of 1954 (7 U.S.C. 1737(c)) is amended--
            (1) by striking ``0.2'' and inserting ``0.4''; and
            (2) by striking ``1991 through 1995'' and inserting ``1996 
        through 2002''.

SEC. 421 FOOD FOR PROGRESS.

    Section 1110 of the Food Security Act of 1985 (7 U.S.C. 1736o) is 
amended--
            (1) in the first sentence of subsection (b)(1), by 
        inserting ``intergovernmental organizations,'' after ``private 
        voluntary organizations,'';
            (2) in subsection (g), by striking ``1995'' and inserting 
        ``2002'';
            (3) in subsection (k), by striking ``1995'' and inserting 
        ``2002'';
            (4) in subsection (l)(1)--
                    (A) by striking ``1995'' and inserting ``2002''; 
                and
                    (B) in inserting ``, and to provide administrative 
                and technical assistance for monetization programs,'' 
                after ``monitoring of food assistance programs''; and
            (5) in subsection (m)--
                    (A) by striking ``with respect to the independent 
                states of the former Soviet Union''; and
                    (B) in paragraph (2), by striking ``in the 
                independent states''.

SEC. 422. FOOD SECURITY COMMODITY RESERVE.

    (a) Food Security Commodity Reserve Act of 1995.--The title heading 
of title III of the Agricultural Act of 1980 (7 U.S.C. 1736f-1 note) is 
amended by striking ``food security wheat reserve act of 1980'' and 
inserting ``food security commodity reserve act of 1995''.
    (b) Short Title.--Section 301 of the Act (7 U.S.C. 1736f-1 note) is 
amended by striking ``Food Security Wheat Reserve Act of 1980'' and 
inserting ``Food Security Commodity Reserve Act of 1995''.
    (c) In General.--Section 302 of the Act (7 U.S.C. 1736f-1) is 
amended--
            (1) in the section heading, by striking ``food security 
        wheat reserve'' and inserting ``food security commodity 
        reserve'';
            (2) so that subsection (a) reads as follows:
    ``(a) In General.--To provide for a reserve solely to meet 
emergency humanitarian food needs in developing countries, 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).'';
            (3) so that subsection (b)(1) reads as follows:
    ``(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 Commodity Reserve Act of 1980 as of the 
                date of enactment of the Food For Peace Reauthorization 
                Act of 1995;
                    ``(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 Food For Peace Reauthorization Act of 1995; and
                    ``(C) such rich, corn, and sorghum as the Secretary 
                of Agriculture (referred to in this section 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.'';
            (4) in subsection (b)(2)--
                    (A) by striking ``(2)(A) Subject to'' and inserting 
                the following:
            ``(2) Replenishment of reserve.--
                    ``(A) In general.--Subject to'';
                    (B) in subparagraph (A)--
                            (i) by striking ``(i) of this section 
                        stocks of wheat'' and inserting ``(i) stocks of 
                        eligible commodities'';
                            (ii) in clause (ii), by striking ``stocks 
                        of wheat'' and inserting ``stocks of eligible 
                        commodities''; and
                            (iii) in the second sentence, by striking 
                        ``wheat'' and inserting ``eligible 
                        commodities''; and
                    (C) in subparagraph (B)--
                            (i) by striking ``(B) Not later'' and 
                        inserting ``(B) Time for replenishment of 
                        reserve.--Not later''; and
                            (ii) in clause (ii), by striking ``wheat'' 
                        and inserting ``eligible commodities'';
            (5) so that subsections (c) through (f) read as follows:
    ``(c) Release of Eligible Commodities.--
            ``(1) Determination.--If the Secretary determines that the 
        amount of commodities allocated for minimum assistance under 
        section 204(a)(1) of the Agricultural Trade Development and 
        Assistance Act of 1954 (7 U.S.C. 1724(a)(1)) less the amount of 
        commodities allocated for minimum non-emergency assistance 
        under section 204(a)(2) of the Act (7 U.S.C. 1724(a)(2)) will 
        be insufficient to meet the need for commodities for emergency 
        assistance under section 202(a) of the Act (7 U.S.C. 1722(a)), 
        the Secretary in any fiscal year may release from the reserve--
                    ``(A) up to 500,000 metric tons of wheat or the 
                equivalent value of eligible commodities other than 
                wheat; and
                    ``(B) any eligible commodities which under 
                subparagraph (A) could have been released but were not 
                released in prior fiscal years.
            ``(2) Availability of commodities.--Commodities released 
        under paragraph (1) shall be made available under title II of 
        the Agricultural Trade Development and Assistance Act of 1954 
        (7 U.S.C. 1721 et seq.) for emergency assistance.
            ``(3) Exchange.--The Secretary may exchange an eligible 
        commodity for another United States commodity of equal value, 
        including powdered milk, pulses, and vegetable oil.
            ``(4) 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 the trade and commerce.
            ``(5) Waiver of minimum tonnage requirements.--Nothing in 
        this subsection shall require the exercise of the waiver under 
        section 204(a)(3) of the Agricultural Trade Development and 
        Assistance Act of 1954 (7 U.S.C. 1724(a)(3)) as a prerequisite 
        for the release of eligible commodities under this subsection.
    ``(d) Transportation and Handling Costs.--
            ``(1) In general.--The cost of transportation and handling 
        of eligible commodities released from the reserve established 
        under this section shall be paid by the Commodity Credit 
        Corporation in accordance with section 406 of the Agricultural 
        Trade Development and Assistance Act of 1954 (7 U.S.C. 1736).
            ``(2) Reimbursement.--
                    ``(A) In general.--The Commodity Credit Corporation 
                shall be reimbursed for the costs incurred under 
                paragraph (1) from the 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 the actual 
                cost incurred by the Commodity Credit Corporation less 
                any savings achieved as a result of decreased storage 
                and handling costs for the reserve. Such reimbursement 
                may be made from funds appropriated for that purpose in 
                subsequent years.
                    ``(C) Decreased storage and handling costs.--For 
                purposes of this subsection, `decreased storage and 
                handling costs' shall mean the total actual costs for 
                storage and handling incurred by the Commodity Credit 
                Corporation for the reserve established under title III 
                of the Agricultural Act of 1980 in fiscal year 1995 
                less the total actual costs for storage and handling 
                incurred by the Corporation for the reserve established 
                under this Act for the fiscal year for which the 
                savings are calculated.
    ``(e) Management of Reserve.--The Secretary shall provide for--
            ``(1) the management of eligible commodities in the reserve 
        as to location and quality of commodities needed to meet 
        emergency situations; and
            ``(2) the periodic rotation of eligible commodities in the 
        reserve to avoid spoilage and deterioration of such stocks.
    ``(f) Treatment of Reserve Under Other Law.--Eligible commodities 
in the reserve established under this section shall not be--
            ``(1) considered a part of the total domestic supply 
        (including carryover) for the purpose of 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).'';
            (6) in subsection (g)--
                    (A) by striking ``(g)(1) The'' and inserting the 
                following:
    ``(g) Use of Commodity Credit Corporation.--The'';
                    (B) by striking ``wheat'' and inserting ``an 
                eligible commodity''; and
                    (C) by striking paragraph (2);
            (7) in subsection (h)--
                    (A) by striking ``(h) Any'' and inserting:
    ``(h) Finality of Determination.--Any''; and
                    (B) by striking ``President or the Secretary of 
                Agriculture'' and inserting ``Secretary''; and
            (8) in subsection (i)--
                    (A) by striking ``(i) The'' and inserting:
    ``(i) Termination of Authority.--The'';
                    (B) by striking ``wheat'' each place it appears and 
                inserting ``eligible commodities''; and
                    (C) by striking ``1995'' each place it appears and 
                inserting ``2002''.
    (d) Effective Date.--Section 303 of the Act (7 U.S.C. 1736-1 note) 
is amended by striking ``October 1, 1980'' and all that follows through 
the end of the section and inserting ``on the date of enactment of this 
Act.''.
    (e) Conforming Amendment.--Section 208(d)(2) of the Agriculture 
Trade Suspension Adjustment Act of 1980 (7 U.S.C. 4001(d)(2)) is 
amended to read as follows:
            ``(2) Applicability of certain provisions.--Subsections 
        (b)(2), (c), (e), and (f) of section 302 of the Food Security 
        Commodity Reserve Act of 1995 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'.''.

               Subtitle B--Agricultural Trade Act of 1978

SEC. 431. AGRICULTURAL EXPORT PROMOTION STRATEGY.

    (a) Generally.--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.

    ``The Secretary shall periodically prepare an agricultural trade 
strategy report on the agricultural trade strategy developed by the 
Secretary to implement the programs designed to promote the export of 
United States agricultural commodities. The Secretary shall submit such 
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.''.
    (b) Elimination of Report.--
            (1) In general.--Section 601 of the Act (7 U.S.C. 5711) is 
        repealed.
            (2) Conforming amendment.--The last sentence of section 603 
        of the Act (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. 432. 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 (f)--
                    (A) by striking ``(f) Restrictions.--The'' and 
                inserting the following:
    ``(f) Restrictions.--
            ``(1) In general.--The''; and
                    (B) by adding at the end the following:
            ``(2) Criteria for determination.--In making the 
        determination required under paragraph (1) with respect to 
        credit guarantees under subsection (b) for a country, the 
        Secretary may consider, in addition to financial, 
        macroeconomic, and monetary indicators--
                    ``(A) whether an International Monetary Fund 
                standby agreement, Paris Club rescheduling plan, or 
                other economic restructuring plan is in place with 
                respect to the country;
                    ``(B) the convertibility of the currency of the 
                country;
                    ``(C) whether the country provides adequate legal 
                protection for foreign investments;
                    ``(D) whether the country has viable financial 
                markets;
                    ``(E) whether the country provides adequate legal 
                protection for the private property rights of citizens 
                of the country; and
                    ``(F) any other factors that are relevant to the 
                ability of the country to service the debt of the 
                country.'';
            (2) in subsection (h)--
                    (A) by striking ``(h) Foreign Agricultural 
                Components'' and inserting ``(h) United States 
                Agricultural Commodities''; and
                    (B) by striking the final sentence;
            (3) in subsection (i)--
                    (A) by striking ``Institutions.--A financial'' and 
                inserting the following: ``Institutions.--
            ``(1) In general.--A financial'';
                    (B) by striking paragraph (1);
                    (C) by striking ``(2) is'' and inserting the 
                following:
                    ``(A) is'';
                    (D) by striking ``(3) is'' and inserting the 
                following:
                    ``(B) is''; and
                    (E) by adding at the end the following:
            ``(2) Third country banks.--The Commodity Credit 
        Corporation may guarantee under subsections (a) and (b) the 
        repayment of credit made available to finance an export sale 
        irrespective of whether the obligor is located in the country 
        to which the export sale is destined.''; and
            (4) by striking subsection (k).
    (b) High Value and Value-Added Products.--Title I of the Act (7 
U.S.C. 5601 et seq.) is amended by adding at the end the following:

``SEC. 106. HIGH VALUE AND VALUE-ADDED PRODUCTS.

    ``For the purpose of discouraging unfair trade practices, in any 
trade and export programs operated by the Secretary or the Commodity 
Credit Corporation, the Secretary shall establish as an objective to 
expend annually at least 25 percent of the total funds available (or 25 
percent of the value of any commodities employed) for program 
activities involving the export sales of high value agricultural 
commodities and value-added products of United States agricultural 
commodities.''.
    (c) Funding Levels.--Section 211(b) of the Act (7 U.S.C. 5641(b)) 
is amended--
            (1) by striking paragraph (2);
            (2) by redesignating subparagraph (B) of paragraph (1) as 
        paragraph (2) and indenting the margin of paragraph (2) (as so 
        redesignated) so as to align with the margin of paragraph (1); 
        and
            (3) by striking paragraph (1) and inserting the following:
            ``(1) Export credit guarantees.--The Commodity Credit 
        Corporation shall make available for each of fiscal years 1996 
        through 2002 not less than $5,500,000,000 in credit guarantees 
        under subsections (a) and (b) of section 202.''.
    (d) Definitions.--Section 102(7) of the Act (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 United States high value or value-added 
                        agricultural product.''.

SEC. 433. REGULATIONS.

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

SEC. 434. AGRICULTURAL EMBARGO PROTECTION.

    Section 411 of the Agricultural Trade Act of 1978 (7 U.S.C. 5671) 
is amended--
            (1) by striking subsections (a) and (b) and inserting the 
        following:
    ``(a) In General.--Notwithstanding any other provision of law, if 
the President or other member of the executive branch of the Federal 
Government causes the export of any agricultural commodity to any 
country or area of the world to be suspended or restricted for reasons 
of national security, foreign policy, or limited domestic supply under 
the Export Administration Act of 1979 (50 U.S.C. App. 2401 et seq.) or 
under any other provision of law, the Secretary shall compensate 
producers of the commodity involved by making payments available to the 
producers, as provided in subsection (b).
    ``(b) Amount of Payment.--If the Secretary makes payments available 
to producers under subsection (a), the amount of the payment shall be 
determined by the Secretary based on the Secretary's estimate of the 
loss suffered by the producer of the commodity involved due to the 
decrease in price of the commodity as a result of the suspension or 
restriction of exports.''; and
            (2) by adding at the end the following:
    ``(f) Definition.--As used in this section, the term `agricultural 
commodity' includes plant nutrient fertilizer materials and any raw 
materials used to produce plant nutrient fertilizer materials, as 
classified in the Harmonized Trade Schedule of the United States (19 
U.S.C. 1202, 19 U.S.C. 3001 et seq.).''.

SEC. 435. FOREIGN AGRICULTURAL SERVICE.

    Section 503 of the Agricultural Trade Act of 1978 (7 U.S.C. 5693) 
is amended to read as follows:

``SEC. 503. ESTABLISHMENT OF THE FOREIGN AGRICULTURAL SERVICE.

    ``The Service shall assist the Secretary in carrying out the 
agricultural trade policy and international cooperation policy of the 
United States by--
            ``(1) acquiring information pertaining to agricultural 
        trade;
            ``(2) carrying out market promotion and development 
        activities;
            ``(3) providing agricultural technical assistance and 
        training; and
            ``(4) carrying out the programs authorized under this Act, 
        the Agricultural Trade Development and Assistance Act of 1954 
        (7 U.S.C. 1691 et seq.), and other Acts.''.

                       Subtitle C--Miscellaneous

SEC. 441. 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. 442. POLICY ON EXPANSION OF INTERNATIONAL MARKETS.

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

SEC. 443. POLICY ON MAINTENANCE AND DEVELOPMENT OF EXPORT MARKETS.

    Sections 1121, 1122, and 1123 of the Food Security Act of 1985 (7 
U.S.C. 1736p) are repealed.

SEC. 444. POLICY ON UNFAIR TRADE PRACTICES.

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

SEC. 445. 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. 446. 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. 447. ORDERLY LIQUIDATION OF STOCKS.

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

SEC. 448. 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. 449. EMERGING MARKETS.

    (a) Promotion of Agricultural Exports to Emerging Markets.--
            (1) Emerging markets.--Section 1542 of the Food, 
        Agriculture, Conservation, and Trade Act of 1990 (Public Law 
        101-624; 7 U.S.C. 5622 note) is amended--
                    (A) in the section heading, by striking ``emerging 
                democracies'' and inserting ``emerging markets'';
                    (B) by striking ``emerging democracies'' each place 
                it appears in subsections (b), (d), and (e) and 
                inserting ``emerging markets'';
                    (C) by striking ``emerging democracy'' each place 
                it appears in subsection (c) and inserting ``emerging 
                market''; and
                    (D) by striking subsection (f) and inserting the 
                following:
    ``(f) Emerging Market.--In this section and section 1543, 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 Act 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 required or authorized under section 211 of the Act (7 
U.S.C. 5641) for the program.''.
            (3) Agricultural fellowship program.--Section 1542 of the 
        Act 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 
                                        potential reductions in trade 
                                        barriers, and identify and 
                                        carry out'';
                                    (II) in subparagraph (B), by 
                                striking ``shall'' and inserting 
                                ``may'';
                                    (III) in subparagraph (D), by 
                                inserting ``(including the 
                                establishment of extension services)'' 
                                after ``technical assistance'';
                                    (IV) by striking subparagraph (F);
                                    (V) by redesignating subparagraph 
                                (G), (H), and (I) as subparagraph (F), 
                                (G), and (H), respectively; and
                                    (VI) in subparagraph (H) (as 
                                redesignated by subclause (V)), by 
                                striking ``$10,000,000'' and inserting 
                                ``$20,000,000'';
                            (iii) in paragraph (2)--
                                    (I) by striking ``the Soviet 
                                Union'' each place it appears and 
                                inserting ``emerging markets'';
                                    (II) in subparagraph (A), by 
                                striking ``a free market food 
                                production and distribution system'' 
                                and inserting ``free market food 
                                production and distribution systems'';
                                    (III) in subparagraph (B)--
                                            (aa) in clause (i), by 
                                        striking ``Government'' and 
                                        inserting ``governments'';
                                            (bb) in clause (iii)(II), 
                                        by striking ``and'' at the end;
                                            (cc) in clause (iii)(III), 
                                        by striking the period at the 
                                        end and inserting ``; and''; 
                                        and
                                            (dd) by adding at the end 
                                        of clause (iii) the following:
                                    ``(IV) to provide for the exchange 
                                of administrators and faculty members 
                                from agricultural and other 
                                institutions to strengthen and revise 
                                educational programs in agricultural 
                                economics, agribusiness, and agrarian 
                                law, to support change towards a free 
                                market economy in emerging markets.'';
                                    (IV) by striking subparagraph (D); 
                                and
                                    (V) by redesignating subparagraph 
                                (E) as subparagraph (D); and (iv) by 
                                striking paragraph (3).
            (4) United states agricultural commodity.--Subsections (b) 
        and (c) of section 1542 of the Act 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 Act 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 Act (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 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''.
            (2) Section 202(d)(3)(B) of the Act (7 U.S.C. 
        5622(d)(3)(B)) is amended by striking ``emerging democracies'' 
        and inserting ``emerging markets''.

SEC. 450. IMPORT ASSISTANCE FOR CBI BENEFICIARY COUNTRIES AND THE 
              PHILIPPINES.

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

SEC. 451. STUDIES, REPORTS, AND OTHER PROVISIONS.

    (a) In General.--Sections 1551 through 1555, section 1559, and 
section 1560 of subtitle E of title XV of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (Public Law 101-624; 104 Stat. 
3696) are repealed.
    (b) Language Proficiency.--Section 1556 of the Act (Public Law 101-
624; 7 U.S.C. 5694 note) is amended by striking subsection (c).

SEC. 452. MONITORING COMPLIANCE WITH URUGUAY ROUND AGREEMENTS.

    Title I of the Agricultural Trade Act of 1978 (7 U.S.C. 5601 et 
seq.) as amended by section 432(b), is amended by adding at the end the 
following:

``SEC. 107. MONITORING COMPLIANCE WITH URUGUAY ROUND AGREEMENTS.

    ``The Secretary shall monitor compliance with foreign countries 
with the provisions of the Agriculture Agreement of the Uruguay Round 
of Multilateral Trade Negotiations of the General Agreement on Tariffs 
and Trade. If the Secretary determines that any foreign country has 
failed to meet a commitment under the Agreement and that such failure 
will adversely affect the ability to export United States agriculture 
exports or products to the country, the Secretary shall--
            ``(1) submit to the United States Trade Representative a 
        recommendation as to whether the President should take action 
        under any provision of law; and
            ``(2) transmit a copy of the recommendation and any 
        decision on such recommendation to the Committee on Agriculture 
        and the Committee on Ways and Means of the House of 
        Representatives and the Committee on Agriculture, Nutrition, 
        and Forestry and the Committee on Finance of the Senate.''.

SEC. 453. LIMITATION ON DURUM WHEAT EXPORT SUBSIDIES.

    Section 301(b) of the Agricultural Trade Act of 1978 (7 U.S.C. 
5651(b)) is amended by adding at the end the following:
            ``(9) Special rule for no. 1 and no. 2 hard amber durum 
        wheat exports.--In any marketing year for which the projected 
        stocks to use ratio prepared by the Secretary of Agriculture 
        for durum wheat is less than or equal to 40 percent, or in any 
        calendar year in which there are in effect any trade 
        restrictions on the importation of durum wheat into the United 
        States, including quotas, ad valorem tariffs, or tariff-rate 
        quotas, the Commodity Credit Corporation may not make available 
        any assistance (whether in the form of agricultural 
        commodities, cash payments, or other bonus) under this section 
        for the export of No. 1 and No. 2 Hard Amber durum wheat.''.

SEC. 454. MARKET PROMOTION PROGRAM.

    Effective as of 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 $100,000,000 for each of fiscal years 
        1996 through 2002,''.

SEC. 455. EXPORT ENHANCEMENT PROGRAM.

    (a) Priority Funding for Wheat Flour.--Section 301 of the 
Agricultural Trade Act of 1978 (7 U.S.C. 5651) is amended--
            (1) by redesignating subsections (d) through (g) as 
        subsections (e) through (h), respectively; and
            (2) by adding the following:
    ``(d) Priority Funding for Wheat Flour.--As determined by the 
Secretary to be consistent with the United States obligations under the 
General Agreements on Tariffs and Trade, the Commodity Credit 
Corporation shall make funds available under this section on an annual 
basis for the sale of wheat flour in sufficient amounts to maintain the 
percentage of market share of world commercial markets achieved by the 
United States wheat flour industry during the Uruguay Round base period 
years of 1986 through 1988.''.
    (b) Funding Levels.--Effective as of October 1, 1995, section 
301(e) of the Agricultural Trade Act of 1978 (7 U.S.C. 5651(e)), as 
redesignated by subsection (a), is amended to read as follows:
    ``(f) Funding Levels.--The Commodity Credit Corporation shall make 
available to carry out the program established under this section not 
more than--
            ``(1) $350,000,000 for fiscal year 1996;
            ``(2) $350,000,000 for fiscal year 1997;
            ``(3) $500,000,000 for fiscal year 1998;
            ``(4) $550,000,000 for fiscal year 1999;
            ``(5) $579,000,000 for fiscal year 2000;
            ``(6) $478,000,000 for fiscal year 2001; and
            ``(7) $478,000,000 for fiscal year 2002.''.
    (c) High Value and Value-Added Products.--Section 303 of the Act (7 
U.S.C. 5653) is repealed.

SEC. 456. 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 Agriculture Agreement of the Uruguay Round of 
Multilateral Trade Negotiations of the General Agreement on Tariffs and 
Trade. If the Secretary determines that any country has failed to meet 
the commitment on sanitary and phytosanitary measures under the 
Agreement, the Secretary shall--
            ``(1) take any appropriate action under any provision of 
        law; and
            ``(2) 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 has failed to meet the 
                sanitary and phytosanitary commitments; and
                    ``(B) any action taken by the Secretary.''.

SEC. 457. AGRICULTURAL TRADE PROGRAM FLEXIBILITY.

    (a) In General.--If the Secretary determines by June 1 of any 
fiscal year that, despite the best efforts to do so, commodities or 
funds for that fiscal year for any program under section 201, 202, 203, 
or 301 of the Agricultural Trade Act of 1978 (7 U.S.C. 5601 et seq.) or 
section 301(b)(2) of the Disaster Assistance Act (7 U.S.C. 1464 note) 
are not necessary to successfully accomplish the objectives of that 
program, the Secretary shall use those commodities and funds for any 
other program under any of such sections, in a manner consistent with 
United States' obligations under the General Agreement on Tariffs and 
Trade.
    (b) Limitation.--In exercising the authority under subsection (a), 
the Secretary shall ensure that any funds or commodities made available 
for any other program does not exceed 30 percent of the authorized 
level of the program.

SEC. 458. SUNFLOWER SEED OIL AND COTTONSEED OIL EXPORT SALES.

    Section 301(b)(2) of the Disaster Assistance Act of 1988 (7 U.S.C. 
1464 note) is amended by striking ``1991 through 1995'' and inserting 
``1996 through 2002''.

SEC. 459. 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 
        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 D--Dairy Export Programs

SEC. 461. AUTHORITY TO ASSIST IN ESTABLISHMENT AND MAINTENANCE OF 
              EXPORT TRADING COMPANY.

    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 of the United States dairy industry 
as may be necessary to enable that industry to establish and maintain 
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 and exportation of dairy products 
produced in the United States.

SEC. 462. STANDBY AUTHORITY TO DESIGNATE ENTITY TO PROVIDE 
              INTERNATIONAL MARKET DEVELOPMENT AND EXPORT SERVICES.

    (a) Designation of Entity To Assist in the International Market 
Development for an Export of United States Dairy Products.--If--
            (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 
        January 1, 1997; or
            (2) the quantity of exports of United States dairy products 
        during the 12-month period preceding January 1, 1998, does not 
        exceed the quantity of exports of United States dairy products 
        during the 12-month period preceding January 1, 1997, by 1.5 
        billion pounds (milk equivalent, total solids basis);
the Secretary of Agriculture is directed to indicate which entity 
autonomous of the Government of the United States is best suited to 
facilitate the international market development for and exportation of 
United States dairy products.
    (b) Funding of Export Activities.--The Secretary shall assist the 
entity 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 January 1, 1998 and ending on September 30, 
2000.

SEC. 463. ASSURANCE OF EQUITABLE TREATMENT, FAIR DEALING AND PROTECTION 
              FROM DISCRIMINATORY PRACTICES FOR UNITED STATES 
              PARTICIPANTS IN THE WORLD MARKET FOR DAIRY PRODUCTS.

    (a) Purpose.--The Secretary of Agriculture shall carry out this 
section in such a manner as to promote the efficient operation of 
Federal dairy programs and to assure their consistency with the rights 
and obligations of members of the World Trade Organization as well as 
the rights and obligations of non-members of the World Trade 
Organization under international law.
    (b) Effects of Certain Discriminatory Practices by Countries of 
Origin.--In administering import licenses for cheese and non-cheese 
dairy products, the Secretary of Agriculture, in the event that it is 
shown to the satisfaction of the Secretary that a country of origin 
discriminates against a licensee with respect to either the price or 
the availability of such a product--
            (1) shall not impose any penalty with respect to the 
        failure of that licensee to use any portion of its license 
        amount during a quota year; and
            (2) shall adjust the country of origin, if the Secretary 
        shall obtain prior consent for such an adjustment from the 
        government of the exporting country, as necessary to comply 
        with the commitments of the United States with respect to 
        quantities originating under the Uruguay Round Agreements of 
        the General Agreement on Tariffs and Trade.
    (c) Export Monopolies.--
            (1) Encouragement of fair dealing.--The Secretary shall not 
        impose any penalty with respect to the failure of a licensee to 
        use any portion of its license amount for such a product from a 
        country of origin that establishes, sanctions, or otherwise 
        permits an internationally integrated state trading enterprise 
        or other export monopoly to control the export of the product 
        concerned.
            (2) Protection against discriminatory practices.--With 
        respect to any country of origin that--
                    (A) exports cheese or non-cheese dairy products 
                through an internationally integrated state trading 
                enterprise or an export monopoly; and
                    (B) designates an importer or importers to receive 
                a license for such products;
        if, within 3 years of the discriminatory occurrence, it is 
        shown to the satisfaction of the Secretary that the licensee 
        has been discriminated against either as to the price or 
        availability of a product by the country of origin, its 
        designated licensee, or any other party or agent acting on 
        behalf of the country of origin or its designated licensee, the 
        Secretary shall revoke for a period of time not less than 3 
        years the eligibility of the country of origin to designate a 
        licensee for the import of cheese under license, except that 
        the Secretary shall obtain prior consent for such revocation 
        from the government of the exporting country as necessary to 
        comply with the commitments of the United States regarding 
        quantities originating under the Uruguay Round of the General 
Agreement on Tariffs and Trade.
            (3) Allocation of available licenses.--Any rights to import 
        made available as a result of a revocation under paragraph (2) 
        shall, during the revocation period for such license, be 
        distributed among historical and other eligible licensees on 
        the basis of a rank-order lottery system determined appropriate 
        by the Secretary.
    (d) Equitable Treatment of Historical Licensees.--Consistent with 
the guarantees provided by the United States to cheese exporting 
countries in the memoranda of understanding executed under the auspices 
of the Uruguay Round Agreements of the General Agreement on Tariffs and 
Trade, any license for the import of cheese held by an historical 
licensee shall not be reduced below the amounts in effect as of 
December 15, 1993 without the consent of the licensee, except in the 
event that it is shown to the satisfaction of the Secretary of 
Agriculture that the licensee has engaged in fraudulent or criminal 
activity in violation of the regulations governing such licenses.
    (e) Definitions.--For purposes of this section--
            (1) the terms ``country of origin'', ``designated 
        importer'', ``historical license'', and ``historical licensee'' 
        shall have the same meaning as when such terms are used in 
        sections 6.20 through 6.34 of title 7 of the Code of Federal 
        Regulations; and
            (2) the term ``internationally integrated state trading 
        enterprise'' means an entity which--
                    (A) is established or sanctioned by the country of 
                origin as a statutory export monopoly with sole 
                sourcing and pricing rights for dairy products destined 
                for export;
                    (B) is part of a license system that prohibits 
                United States licensees from purchasing cheese and non-
                cheese dairy products from the vendor of choice in the 
                country of origin, and that requires licensees to 
                acquire from the entity or its captive subsidiary all 
                or substantially all of any cheese or non-cheese dairy 
                product for import from the country of origin; and
                    (C) owns or controls licenses for the import of 
                cheese or non-cheese dairy products from the country of 
                origin, where the preponderance of such licenses are 
                used for the import of commodity-type cheese and other 
                processing-type dairy products.
    (f) Application of Section.--This section shall apply on and after 
January 1, 1997.

SEC. 464. 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 March 31, 1997, the Secretary shall 
report to the Committee on Agriculture of the Senate and 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 such limitation explicitly references this section in doing so.

               TITLE V--EXTENSION OF RESEARCH AUTHORITIES

SEC. 501. EXTENSION OF NATIONAL GENETIC RESOURCES PROGRAM.

    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. 502. EXTENSION OF 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. 503. EXTENSION OF RESEARCH PROGRAM REGARDING PRODUCTION, 
              PREPARATION, PROCESSING, HANDLING, AND STORAGE OF 
              AGRICULTURAL PRODUCTS.

    Section 1647(a) of the Food, Agriculture, Conservation, and Trade 
Act of 1990 (7 U.S.C. 5874(a)) is amended by striking ``1995'' and 
inserting ``1997''.

SEC. 504. EXTENSION OF 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. 505. EXTENSION OF 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. 506. EXTENSION OF MESQUITE RESEARCH PROGRAM.

    Section 1672(d)(4) of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 5925(d)(4)) is amended by striking ``1995'' 
and inserting ``1997''.

SEC. 507. EXTENSION OF PRICKLY PEAR RESEARCH PROGRAM.

    Section 1672(e)(4) of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 5925(e)(4)) is amended by striking ``1995'' 
and inserting ``1997''.

SEC. 508. EXTENSION OF DEER TICK ECOLOGY AND RELATED RESEARCH PROGRAM.

    Section 1672(i) of the Food, Agriculture, Conservation, and Trade 
Act of 1990 (7 U.S.C. 5925(i)) is amended by striking ``1995'' and 
inserting ``1997''.

SEC. 509. EXTENSION OF 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. 510. EXTENSION OF NATIONAL CENTERS FOR AGRICULTURAL PRODUCT 
              QUALITY RESEARCH.

    Section 1675(g)(1) of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 5928(g)(1)) is amended by striking ``1995'' 
and inserting ``1997''.

SEC. 511. EXTENSION OF PILOT PROJECT TO COORDINATE FOOD AND NUTRITION 
              EDUCATION PROGRAMS.

    Section 1679(d) of the Food, Agriculture, Conservation, and Trade 
Act of 1990 (7 U.S.C. 5932(d)) is amended by striking ``1995'' and 
inserting ``1997''.

SEC. 512. EXTENSION OF ASSISTIVE TECHNOLOGY PROGRAM FOR FARMERS WITH 
              DISABILITIES.

    (a) Special Demonstration Grants.--Subsection (a)(6)(B) of section 
1680 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 
U.S.C. 5933) is amended by striking ``1996'' and inserting ``1997''.
    (b) National Grant for Technical Assistance, Training and 
Dissemination.--Subsection (b)(2) of such section is amended by 
striking ``1996'' and inserting ``1997''.

SEC. 513. EXTENSION OF NATIONAL RURAL INFORMATION CENTER CLEARINGHOUSE.

    Section 2381(e) Food, Agriculture, Conservation, and Trade Act of 
1990 (7 U.S.C. 3125b(e)) is amended by striking ``1995'' and inserting 
``1997''.

SEC. 514. EXTENSION OF INDIAN SUBSISTENCE FARMING DEMONSTRATION GRANT 
              PROGRAM.

    Section 939 of the Food, Agriculture, Conservation, and Trade Act 
Amendments of 1991 (7 U.S.C. 5930 note) is amended by striking ``1995'' 
and inserting ``1997''.

SEC. 515. EXTENSION OF JOINT COUNCIL ON FOOD AND AGRICULTURAL SCIENCES.

    Section 1407(a) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3122(a)) is amended by 
striking ``1995'' and inserting ``1997''.

SEC. 516. EXTENSION OF NATIONAL AGRICULTURAL RESEARCH AND EXTENSION 
              USERS ADVISORY BOARD.

    Section 1408(a) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3123(a)) is amended by 
striking ``1995'' and inserting ``1997''.

SEC. 517. EXTENSION OF PROGRAM OF GRANTS AND FELLOWSHIPS FOR FOOD AND 
              AGRICULTURAL SCIENCES EDUCATION.

    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''.

SEC. 518. EXTENSION OF GRANT PROGRAM 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. 519. EXTENSION OF FOOD SCIENCE AND NUTRITION RESEARCH CENTER.

    Section 1424(d) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3174(d)) is amended by 
striking ``1995'' and inserting ``1997''.

SEC. 520. EXTENSION OF NUTRITION EDUCATION PROGRAM.

    Section 1425(c)(3) of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3175(c)(3)) is 
amended by striking ``fiscal year 1995'' and inserting ``each of the 
fiscal years 1995 through 1997''.

SEC. 521. EXTENSION OF ANIMAL HEALTH SCIENCE RESEARCH ADVISORY BOARD.

    Section 1432(a) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3194(a)) is amended by 
striking ``1995'' and inserting ``1997''.

SEC. 522. EXTENSION OF ANIMAL HEALTH AND DISEASE RESEARCH PROGRAMS.

    Section 1433(a) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3195(a)) is amended by 
striking ``1995'' and inserting ``1997''.

SEC. 523. EXTENSION OF RESEARCH ON NATIONAL OR REGIONAL ANIMAL HEALTH 
              OR DISEASE PROBLEMS.

    Section 1434(a) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3196(a)) is amended by 
striking ``1995'' and inserting ``1997''.

SEC. 524. EXTENSION OF RESIDENT INSTRUCTION PROGRAM AT 1890 LAND-GRANT 
              COLLEGES.

    Section 1446(f) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3222a(f)) is amended by 
striking ``1995'' and inserting ``1997''.

SEC. 525. EXTENSION OF 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 ``1995'' and inserting ``1997''.

SEC. 526. EXTENSION OF 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 striking ``1995'' and 
        inserting ``1997''; and
            (2) in subsection (f), by striking ``1995'' and inserting 
        ``1997''.

SEC. 527. EXTENSION OF MISCELLANEOUS 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. 528. EXTENSION OF EXTENSION EDUCATION PROGRAM.

    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 the fiscal years 1995 
through 1997''.

SEC. 529. EXTENSION OF RESEARCH AND PILOT PROJECT FOR THE DEVELOPMENT 
              OF SUPPLEMENTAL AND ALTERNATIVE CROPS.

    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''.

SEC. 530. EXTENSION OF AQUACULTURE ASSISTANCE PROGRAMS.

    (a) 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''.
    (b) Research and Extension.--Section 1477 of such Act (7 U.S.C. 
3324) is amended by striking ``1995'' and inserting ``1997''.

SEC. 531. EXTENSION OF RANGELAND RESEARCH PROGRAM.

    (a) Advisory Board.--Section 1482(a) of the National Agricultural 
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3335(a)) 
is amended by striking ``1995'' and inserting ``1997''.
    (b) Research Program.--Section 1483(a) of such Act (7 U.S.C. 
3336(a)) is amended by striking ``1995'' and inserting ``1997''.

SEC. 532. EXTENSION OF DAIRY GOAT RESEARCH PROGRAM.

    Section 1432(b)(5) of the Agriculture and Food Act of 1981 (7 
U.S.C. 3222 note) is amended by striking ``1995'' and inserting 
``1997''.

SEC. 533. EXTENSION OF CONSTRUCTION PROGRAM FOR FEDERAL AGRICULTURAL 
              RESEARCH FACILITIES.

    Section 1431 of the Food Security Act of 1985 (Public Law 99-198; 
99 Stat. 1556) is amended by striking ``1995'' both places it appears 
and inserting ``1997''.

SEC. 534. EXTENSION OF THE COMPETITIVE, SPECIAL, AND FACILITIES 
              RESEARCH GRANT ACT.

    The Competitive, Special, and Facilities Research Grant Act (7 
U.S.C. 450i) is amended in subsection (b)(10) by striking ``fiscal year 
1995'' and inserting ``each of the fiscal years 1995 through 1997''.

SEC. 535. EXTENSION OF THE RESEARCH FACILITIES ACT.

    Section 4(a) of the Research Facilities Act (7 U.S.C. 390c(a)) is 
amended by striking ``1995'' and inserting ``1997''.

SEC. 536. EXTENSION OF CRITICAL AGRICULTURAL MATERIALS RESEARCH.

    Section 16(a) of the Critical Agricultural Materials Act (7 U.S.C. 
178n(a)) is amended by striking ``1995'' and inserting ``1997''.

SEC. 537. EXTENSION OF 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 ``1997''.

 TITLE VI--ISSUANCE OF ORDERS FOR PROMOTION, RESEARCH, AND INFORMATION 
             ACTIVITIES REGARDING AGRICULTURAL COMMODITIES

SEC. 601. SHORT TITLE.

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

SEC. 602. 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 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 the 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.
    (b) Purpose.--It is the purpose of this title to authorize the 
establishment, through the exercise by the Secretary of Agriculture of 
the authority provided in this title, 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; and
            (3) develop new markets and uses for agricultural 
        commodities.
    (c) Rule of Construction.--This title shall not be construed to 
provide for the control of production or otherwise limit the right of 
any person to produce, to handle, or to import an agricultural 
commodity.

SEC. 603. DEFINITIONS.

    In this title:
            (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 604.
            (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 grown by the producer.
            (6) Handle.--The term ``handle'' means receipt of a 
        agricultural commodity by a first handler, including an 
        agricultural commodity produced by a first handler.
            (7) Importer.--The term ``importer'' means any person who 
        imports an agricultural commodity from outside of the United 
        States for sale in the United States as a principal or as an 
        agent, broker, or consignee or any person.
            (8) Information.--The term ``information'' means 
        information and programs that are designed to increase 
        efficiency in processing and 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.
            (9) Market.--The term ``market'' means to sell or to 
        otherwise dispose of an agricultural commodity in interstate, 
        foreign, or intrastate commerce.
            (10) Order.--The term ``order'' means an order issued under 
        section 604.
            (11) Person.--The term ``person'' means any individual, 
        group of individuals, partnership, corporation, association, 
        cooperative, or any other legal entity.
            (12) Producer.--The term ``producer'' means any person 
        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.
            (13) 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.
            (14) 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.
            (15) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.
            (16) 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.
            (17) 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.
            (18) 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.
            (19) United states.--The term ``United States'' means 
        collectively the several States, the District of Columbia, the 
        Commonwealth of Puerto Rico and the territories and possessions 
        of the United States.

SEC. 604. ISSUANCE OF ORDERS.

    (a) Issuance Authorized.--
            (1) In general.--To effectuate the purpose of this title, 
        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 606(f).
            (2) National scope.--Each order issued under this section 
        shall be national in scope.
    (b) Procedure for Issuance.--
            (1) Receipt or development of proposed order.--A proposed 
        order with regard to an agricultural commodity may be--
                    (A) prepared by the Secretary at any time with 
                respect to the agricultural commodity; 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 title, 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 title, 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 title.
    (c) Issuance and Effective Date.--If the Secretary determines that 
the final order developed with regard to an agricultural commodity is 
consistent with and will effectuate the purpose of this title, the 
Secretary shall issue the final order. Except in the case of an order 
for which an initial referendum is conducted under section 611(a), the 
final order shall be issued and become effective not later than 270 
days after the 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 613.

SEC. 605. 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 intended to effectuate the purpose of this title.
            (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 606(f), the Secretary shall also appoint 
                importers as members of the board and as alternatives 
                if alternates are included on the board. The Secretary 
                may appoint one 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 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 five-
        year period, but not more frequently than once in each three-
        year period, each board shall--
                    (A) review the geographical distribution of the 
                production of the agricultural commodity in the United 
                States 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 serve for a term of three years, except 
                that the members and any alternates initially appointed 
                to a board shall serve terms of not more than two, 
                three, and four years, as specified by the order.
                    (B) Limitation on consecutive terms.--A member or 
                alternate may serve not more than two 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 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 607 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 start-up 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 607, 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) 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) Submission to secretary.--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.--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. Each order shall also 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) Paying expenses.--Expenses incurred under paragraph (3) 
        shall be paid by a board using assessments collected under 
        section 607, earnings obtained from assessments, and other 
        income of the board. Any funds borrowed by the board shall be 
        expended only for start-up costs and capital outlays.
            (5) Limitation on spending.--For fiscal years beginning 
        three 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)), 
        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) may pay the cost of approved generic promotion, 
                research, and information activities using assessments 
                collected under section 607, 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.--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, at such the intervals as the Secretary 
shall prescribe. Such evaluations, or summaries thereof, shall be made 
available to the public. The costs of preparing and disseminating the 
evaluations or summaries shall be paid from assessments collected under 
section 607.
    (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 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 (A).
            (2) Time requirement.--Any record required under paragraph 
        (1) to be maintained 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 title, information 
        regarding persons subject to an order that is accumulated by 
        the Department under any other law.
            (4) Confidentiality of information.--
                    (A) In general.--Except as otherwise provided in 
                this title, all information obtained under paragraph 
                (1) or as part of a referendum under section 611 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 be 
                construed to prohibit the issuance of general 
                statements based upon reports or on information 
                relating to a number of persons subject to an order if 
                the statements do not reveal the information furnished 
                by the person, or 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 the 
                provisions of 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 be 
        construed to authorize the withholding of information from 
        Congress.

SEC. 606. PERMISSIVE TERMS IN ORDERS.

    (a) Exemptions.--An order issued under this title may contain 
authority for the Secretary to exempt from the order any de minimis 
quantity of an agricultural commodity otherwise covered by the order 
and 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 title 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 title 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 605(e) shall apply with respect 
to activities authorized under this subsection.
    (d) Reserve Funds.--An order issued under this title may contain 
authority to reserve funds from assessments collected under section 607 
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 605 by the Secretary for any two fiscal 
years.
    (e) Credits.--An order issued under this title 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.
    (f) Assessment of Imports.--An order issued under this title may 
contain authority for the board established under the order to assess 
under section 607 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 title may contain 
authority to take any other action that--
            (1) is not inconsistent with the purpose of this title, any 
        term or condition specified in section 605, any rule issued to 
        carry out this title; and
            (2) is necessary to administer the order.

SEC. 607. ASSESSMENTS.

    (a) Assessments Authorized.--While an order issued under this title 
is in effect with respect to a agricultural commodity, assessments 
shall be--
            (1) paid with respect to the agricultural commodity 
        produced and marketed in the United States; and
            (2) paid with respect to the agricultural commodity 
        imported into the United States, if the imported agricultural 
        commodity is covered by the order pursuant to section 606(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 one assessment may be 
levied under subsection (a) with respect to any agricultural commodity 
handled or imported.
    (d) Assessment Rates.--The board shall recommend to the Secretary 
one 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 611.
    (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 thereof;
            (2) general obligations of any State or any political 
        subdivision thereof;
            (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 611(b)(1) with respect to the order, the board 
        established under the order shall--
                    (A) 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 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 receive 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.--A person subject to an order shall 
        make the demand for a refund 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 611(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. 608. PETITION AND REVIEW OF ORDERS.

    (a) Petition.--
            (1) In general.--A person subject to an order issued under 
        this title 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 therewith, must be filed 
        within two years of 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 609 to 
be taken to enforce this title, including any rule, order, or penalty 
in effect under this title.

SEC. 609. 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 
title.
    (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 title if the 
Secretary believes that the administration and enforcement of this 
title 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 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 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. 610. 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 title; or
            (2) to determine whether any person subject to this title 
        has engaged, or is about engage, in any action that constitutes 
        or will constitute a violation of this title or any order or 
        regulation issued under this title.
    (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. 611. 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 those persons to be subject 
        to an assessment under section 607 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 (c). 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 such assessments 
        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 36 months 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 not later than 7 years after assessments first begin under 
the order, or at the request of the board established under the order, 
or 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 in order to determine whether the continuance, suspension, or 
termination of the order or a provision thereof 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 who represent a majority of the 
        volume of the agricultural commodity; or
            (3) by a majority of those persons voting who 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. Such 
        notice shall explain any registration and voting procedures 
        established under this subsection.

SEC. 612. SUSPENSION OR TERMINATION.

    (a) Mandatory Suspension or Termination.--The Secretary shall 
suspend or terminate an order or a provision of an order whenever the 
Secretary finds that an order or a provision of an order obstructs or 
does not tend to effectuate the purpose of this title, or whenever the 
Secretary determines that the order or a provision of an order is not 
favored by those voting in referenda conducted under section 611.
    (b) Suspension or Termination.--If, as a result of referenda 
conducted under section 611, 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. 613. AMENDMENTS TO ORDERS.

    The provisions of this title applicable to an order shall be 
applicable to amendments to an order, except that the provisions of 
section 611 shall not apply to amendments.

SEC. 614. EFFECT ON OTHER LAWS.

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

SEC. 615. REGULATIONS.

    The Secretary may issue the regulations as may be necessary to 
carry out the provisions of this title and the power vested in the 
Secretary under this title.

SEC. 616. AUTHORIZATION OF APPROPRIATIONS.

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

                  TITLE VII--MISCELLANEOUS PROVISIONS

              Subtitle A--General Conservation Provisions

SEC. 701. CLARIFICATION OF EFFECT OF RESOURCE PLANNING ON ALLOCATION OR 
              USE OF WATER.

    (a) National Forest System Resource Planning.--Section 6 of the 
Forest and Rangeland Renewable Resources Planning Act of 1974 (16 
U.S.C. 1604) is amended by adding at the end the following new 
subsection:
    ``(n) Limitation on Authority.--Nothing in this section shall be 
construed to supersede, abrogate or otherwise impair any right or 
authority of a State to allocate quantities of water (including 
boundary waters). Nothing in this section shall be implemented, 
enforced, or construed to allow any officer or agency of the United 
States to utilize directly or indirectly the authorities established 
under this section to impose any requirement not imposed by the State 
which would supersede, abrogate, or otherwise impair rights to the use 
of water resources allocated under State law, interstate water compact, 
or Supreme Court decree, or held by the United States for use by a 
State, its political subdivisions, or its citizens. No water rights 
arise in the United States or any other person under the provisions of 
this Act.''.
    (b) Authorization to Grant Rights-of-Way.--Section 501 of the 
Federal Land Policy and Management Act of 1976 (43 U.S.C. 1761) is 
amended as it applies to the Secretary of Agriculture--
            (1) in subsection (c)(1)--
                    (A) by striking subparagraph (B);
                    (B) in subparagraph (D), by striking ``originally 
                constructed'';
                    (C) in subparagraph (G), by striking ``1996'' and 
                inserting ``1998''; and
                    (D) by redesignating subparagraphs (C) through (G) 
                as subparagraphs (B) through (F), respectively;
            (2) in subsection (c)(3)(A), by striking the second and 
        third sentences; and
            (3) by adding at the end the following new subsection:
    ``(e) Effect on Valid Existing Rights.--Notwithstanding any 
provision of this section, the Secretary of Agriculture may not 
require, as a condition of, or in connection with, the renewal of a 
right-of-way under this section, a restriction or limitation on the 
operation, use, repair, or replacement of an existing water supply 
facility which is located on or above National Forest lands or the 
exercise and use of existing water rights, if such condition would 
reduce the quantity of water which would otherwise be made available 
for use by the owner of such facility or water rights, or cause an 
increase in the cost of the water supply provided from such 
facility.''.

SEC. 702. PAYMENT OF FILING FEES BY UNITED STATES IN CONNECTION WITH 
              WATER RIGHTS ADJUDICATIONS.

    (a) Payment of Filing Fees.--Subsection (a) of section 208 of the 
Act of July 10, 1952 (43 U.S.C. 666; commonly referred to as the 
``McCarran Amendment''), is amended in the second sentence by striking 
``and (2) shall'' and inserting ``(2) pay any filing fee that is 
assessed against the United States as a claimant in a water rights 
adjudication, is generally applicable to all such claimants, and is 
used to pay administrative and judicial expenses attributable to water 
rights adjudications, and (3)''.
    (b) Application of Amendment.--The amendments made by subsection 
(a) shall apply to any suit for the adjudication of water rights under 
State law pending on the date of the enactment of this Act or commenced 
after such date.

SEC. 703. PROVISION OF TECHNICAL ASSISTANCE TO STATE FORESTERS.

    Effective September 30, 1996, section 5 of the Cooperative Forestry 
Assistance Act of 1978 (16 U.S.C. 2103a) is amended--
            (1) by striking subsections (b) and (h); and
            (2) by redesignating subsections (c), (d), (e), (f), and 
        (g) as subsections (b), (c), (d), (e), and (f), respectively.

SEC. 704. REPEAL OF STATE TECHNICAL COMMITTEES.

    (a) Repeal.--Subtitle G of title XII of the Food Security Act of 
1985 (16 U.S.C. 3861 and 3862) is repealed.
    (b) Conforming Amendment.--Section 1628 of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 5831) is amended by 
striking ``, subtitle G of title XIV'' both places it appears.

SEC. 705. REPEAL OF 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. 706. REPEAL OF FARMS FOR THE FUTURE ACT OF 1990.

    The Farms for the Future Act of 1990 (chapter 2 of subtitle E of 
title XIV of Public Law 101-624; 7 U.S.C. 4201 note) is repealed.

SEC. 707. ADMINISTRATION OF ENVIRONMENTAL PROGRAMS.

    (a) Repeal.--Subtitle F of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 5401-5403) is repealed.
    (b) Conforming Amendments.--Such Act is further amended--
            (1) in section 1482(d) (7 U.S.C. 5502(d)), by striking ``in 
        conjunction with the report required under section 1473(c). The 
        report'' and inserting ``, which''; and
            (2) in section 1499(a) (7 U.S.C. 5506(a)), by striking the 
        last sentence.

SEC. 708. PRIVATE GRAZING LANDS CONSERVATION ASSISTANCE.

    (a) Assistance Authorized.--The Secretary of Agriculture shall 
establish a program to provide technical, educational, and related 
assistance to owners of private grazing land, managers of private 
grazing land, and local conservation districts managing private grazing 
land, to assist such owners and managers to voluntarily conserve or 
enhance private grazing land. Assistance shall be provided only at the 
request of the owner or manager of the private grazing land.
    (b) Personnel.--The Secretary shall make available sufficient 
personnel of the Natural Resources Conservation Service to deliver and 
coordinate the provision of assistance under this section to owners and 
managers of private grazing lands. Such personnel shall be trained in 
pasture and range management.
    (c) Budget Proposal.--The budget of the President for a fiscal year 
submitted to Congress under section 1105 of title 31, United States 
Code, shall specify, as part of the budget of the Department of 
Agriculture and the Natural Resources Conservation Service, the amount 
requested for that fiscal year to carry out this section.
    (d) Private Grazing Land Defined.--For the purpose of this section, 
the term ``private grazing lands'' means privately owned, State owned, 
tribal, and non-federally owned rangelands, pasturelands, grazed 
forestlands, and haylands.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $20,000,000 for fiscal year 
1996, $40,000,000 for fiscal year 1997, and $60,000,000 for each fiscal 
year thereafter.

                         Subtitle B--Inspection

SEC. 721. FEDERAL AND STATE COOPERATION UNDER FEDERAL MEAT INSPECTION 
              ACT.

    (a) Removal of Intrastate Distribution Limitation.--Subsection 
(a)(1) of section 301 of the Federal Meat Inspection Act (21 U.S.C. 
661) is amended by striking ``solely for distribution within such 
State'' at the end of paragraph (1).
    (b) Use of State Inspectors.--Subsection (a) of such section is 
amended by adding at the end the following new paragraph:
            ``(5) In addition to appointing inspectors under section 
        21, the Secretary may enter into agreements to utilize officers 
        and employees of a State or the District of Columbia to conduct 
        such examinations, investigations, and inspections authorized 
        under this Act as the Secretary determines practicable.''.
    (c) Termination of Designation of State as Subject to Federal 
Inspection for Intrastate Distribution.--Subsection (c)(3) of such 
section is amended by striking ``, with respect to the operations and 
transactions within such State which are regulated under subparagraph 
(1), he'' and inserting ``with respect to all establishments within its 
jurisdiction which do not operate under Federal inspection under title 
I and at which any cattle, sheep, swine, goats, or equines are 
slaughtered for use as human food (or their carcasses or parts or 
products thereof are prepared for use as human food), and with respect 
to the distribution of carcasses, parts thereof, meat, or meat food 
products of such animals within the States, the Secretary''.
    (d) Expansion of State Inspection Authority.--Such section is 
further amended--
            (1) by redesignating subsection (d) as subsection (e); and
            (2) by inserting after subsection (c) the following new 
        subsection:
    ``(d)(1) Except as provided in paragraph (2), carcasses, parts of 
carcasses, meat, and meat food products of cattle, sheep, swine, goats, 
or equines prepared under State inspection in any State (other than a 
State designated under subsection (c)) in compliance with the meat 
inspection law of the State shall be eligible for sale or 
transportation in interstate commerce, and for entry into and use in 
the preparation of products in establishments at which Federal 
inspection is maintained under title I, in the same manner and to the 
same extent as products prepared at such establishments.
    ``(2) State inspected articles described in paragraph (1), and 
federally inspected articles prepared (in whole or in part) from such 
State inspected articles--
            ``(A) shall not be eligible for sale or transportation in 
        foreign commerce; and
            ``(B) shall be separated at all times from all other 
        federally inspected articles in any federally inspected 
        establishment that engages in the preparation, sale, or 
        transportation of carcasses, parts of carcasses, meat, or meat 
        food products, for foreign commerce.
    ``(3) All carcasses, parts of carcasses, meat, and meat food 
products that are inspected in a program of inspection in a State 
(other than a State designated under subsection (c)) pursuant to State 
law shall be identified as so inspected only by official marks that 
identify the State and are such design as the State shall prescribe. 
Federally inspected articles prepared (in whole or in part) from such 
State inspected articles shall be identified as so inspected only by 
the same official marks as prescribed by the Secretary for articles 
slaughtered or prepared under title I.
    ``(4) Except as provided in paragraph (5), the operator of an 
establishment operated under Federal or State inspection who wishes to 
transfer to State or Federal inspection, as the case may be, may do so 
only on October 1 of any year. Such transfer shall occur only if--
            ``(A) the operator provides written notice of the intention 
        to transfer to both inspection agencies at least six months in 
        advance of that date; and
            ``(B) the Secretary determines that the transfer will 
        effectuate the purposes set forth in section 2 and will not 
        adversely affect the stability of the total State and Federal 
        inspection systems.
    ``(5) The Secretary may permit the operator of an establishment to 
transfer from State to Federal inspection at any time if the operator 
presents clear and convincing evidence to the Secretary that the 
establishment intends to, and will be able to, engage in foreign 
commerce to a substantial extent in a manner which would require 
Federal inspection.
    ``(6) For purposes of this subsection, the term `interstate 
commerce' means commerce between States or between a State and the 
District of Columbia.''.
    (e) Prohibition on Additional or Different State Requirements.--
Section 408 of such Act (21 U.S.C. 678) is amended to read as follows:

``SEC. 408. PREEMPTION.

    ``(a) Premises, Facilities and Operations.--Requirements within the 
scope of this Act with respect to premises, facilities and operations 
of any establishment at which inspection is provided under title I, 
which are in addition to, or different than those made under this Act 
may not be imposed by any State or Territory or the District of 
Columbia. However, any such jurisdiction may impose recordkeeping and 
other requirements within the scope of section 202, if consistent with 
such section, with respect to any such establishment.
    ``(b) Marking, Labeling, Packaging, and Ingredients.--(1) Except as 
provided in paragraph (2), marking, labeling, packaging, or ingredient 
requirements in addition to (or different than) those made under this 
Act may not be imposed by any State or Territory or the District of 
Columbia with respect to articles prepared at any establishment under 
Federal inspection in accordance with the requirements of title I or 
with respect to articles prepared for commerce at any State inspected 
establishment in accordance with the requirements of section 301(d).
    ``(2) A State or territory or the District of Columbia may, 
consistent with the requirements under this Act, exercise concurrent 
jurisdiction with the Secretary over articles distributed in commerce 
or otherwise subject to this Act, for the purpose of preventing the 
distribution for human food purposes of any such articles which are not 
in compliance with the requirements under this Act and are outside of 
any federally or State inspected establishment, or in the case of 
imported articles, which are not at such an establishment, after their 
entry into the United States.
    ``(c) Other Matters.--This Act shall not preclude any State or 
Territory or the District of Columbia from imposing a requirement or 
taking other action, consistent with this Act, with respect to any 
other matters regulated under this Act.''.

SEC. 722. FEDERAL AND STATE COOPERATION UNDER THE POULTRY PRODUCTS 
              INSPECTION ACT.

    (a) Removal of Intrastate Distribution Limitation.--Subsection 
(a)(1) of section 5 of the Poultry Products Inspection Act (21 U.S.C. 
454) is amended by striking ``solely for distribution within such 
State'' at the end of paragraph (1).
    (b) Use of State Inspectors.--Subsection (a) of such section is 
amended by adding at the end the following new paragraph:
            ``(5) The Secretary may enter into agreements to utilize 
        officers and employees of a State or the District of Columbia 
        to conduct such examinations, investigations, and inspections 
        authorized under this Act as the Secretary determines 
        practicable.''.
    (c) Termination of Designation of State as Subject to Federal 
Inspection for Intrastate Distribution.--Subsection (c)(3) of such 
section is amended by striking ``, with respect to the operations and 
transactions within such State which are regulated under subparagraph 
(1) of this paragraph (c), he'' and inserting ``with respect to all 
establishments within its jurisdiction which do not operate under 
Federal inspection under this Act and at which any poultry are 
slaughtered, or any poultry products are processed, for use as human 
food, and with respect to the distribution of poultry products within 
the States, the Secretary''.
    (d) Expansion of State Inspection Authority.--Such section is 
further amended--
            (1) by redesignating subsection (d) as subsection (e); and
            (2) by inserting after subsection (c) the following new 
        subsection:
    ``(d)(1) Except as provided in paragraph (2), poultry products 
processed under State inspection in any State (other than a State 
designated under subsection (c)) in compliance with the poultry 
products inspection law of the State shall be eligible for sale or 
transportation in interstate commerce, and for entry into and use in 
the preparation of products in establishments at which Federal 
inspection is maintained under this Act, in the same manner and to the 
same extent as poultry products processed at such establishments. 
Poultry products complying with the requirements of the poultry product 
inspection laws of the State (other than a State designated under 
subsection (c)) in which the products were processed shall be 
considered as complying with this Act.
    ``(2) State inspected poultry products described in paragraph (1), 
and federally inspected poultry products processed (in whole or in 
part) from such State inspected poultry products--
            ``(A) shall not be eligible for sale or transportation in 
        foreign commerce; and
            ``(B) shall be separated at all times from all other 
        federally inspected poultry products in any federally inspected 
        establishment that engages in the processing, sale, or 
        transportation of poultry products for foreign commerce.
    ``(3) All poultry products that are inspected in a program of 
inspection in a State (other than a State designated under subsection 
(c)) pursuant to State law shall be identified as so inspected only by 
official marks that identify the State and are such design as the State 
shall prescribe. Federally inspected poultry products processed (in 
whole or in part) from such State inspected poultry products shall be 
identified as so inspected only by the same official marks as 
prescribed by the Secretary for poultry products processed under this 
Act (other than this section or section 11).
    ``(4) Except as provided in paragraph (5), the operator of an 
establishment operated under Federal or State inspection who wishes to 
transfer to State or Federal inspection, as the case may be, may do so 
only on October 1 of any year. Such transfer shall occur only if--
            ``(A) the operator provides written notice of the intention 
        to transfer to both inspection agencies at least six months in 
        advance of that date; and
            ``(B) the Secretary determines that the transfer will 
        effectuate the legislative policy set forth in section 3 and 
        will not adversely affect the stability of the total State and 
        Federal inspection systems.
    ``(5) The Secretary may permit the operator of an establishment to 
transfer from State to Federal inspection at any time if the operator 
presents clear and convincing evidence to the Secretary that the 
establishment intends to, and will be able to, engage in foreign 
commerce to a substantial extent in a manner which would require 
Federal inspection.
    ``(6) For purposes of this subsection, the term `interstate 
commerce' means commerce between States or between a State and the 
District of Columbia.''.
    (e) Prohibition on Additional or Different State Requirements.--
Section 23 of such Act (21 U.S.C. 467e) is amended to read as follows:

``SEC. 23. PREEMPTION.

    ``(a) Premises, Facilities and Operations.--Requirements within the 
scope of this Act with respect to premises, facilities and operations 
of any official establishment, which are in addition to, or different 
than those made under this Act may not be imposed by any State or 
territory or the District of Columbia. However, any such jurisdiction 
may impose recordkeeping and other requirements within the scope of 
section 11(b), if consistent with such section, with respect to any 
such establishment.
    ``(b) Marking, Labeling, Packaging, and Ingredients.--(1) Except as 
provided in paragraph (2), marking, labeling, packaging, or ingredient 
requirements in addition to (or different than) those made under this 
Act may not be imposed by any State or territory or the District of 
Columbia with respect to articles prepared at any establishment under 
Federal inspection in accordance with the requirements of this Act or 
with respect to articles prepared for commerce at any State inspected 
establishment in accordance with the requirements of section 5(d). 
Further storage or handling requirements found by the Secretary to 
unduly interfere with the free flow of poultry products in commerce 
shall not be imposed by any State or territory or the District of 
Columbia.
    ``(2) A State or territory or the District of Columbia may, 
consistent with the requirements of this Act, exercise concurrent 
jurisdiction with the Secretary over articles distributed in commerce 
or otherwise subject to this Act, for the purpose of preventing the 
distribution for human food purposes of any such articles which are not 
in compliance with the requirements of this Act and are outside of any 
federally or State inspected establishment, or in the case of imported 
articles, which are not at such an establishment, after their entry 
into the United States.
    ``(c) Other Matters.--This Act shall not preclude any State or 
territory or the District of Columbia from making requirements or 
taking other action, consistent with this Act, with respect to any 
other matters regulated under this Act.''.

SEC. 723. ESTABLISHMENT OF SAFE MEAT AND POULTRY INSPECTION PANEL.

    (a) Establishment of Panel.--The Federal Meat Inspection Act (21 
U.S.C. 601 et seq.) is amended by adding at the end the following new 
section:

``SEC. 411. SAFE MEAT AND POULTRY INSPECTION PANEL.

    ``(a) Establishment.--There is hereby established in the Department 
of Agriculture a permanent advisory panel to be known as the `Safe Meat 
and Poultry Inspection Panel'.
    ``(b) Purpose.--The Safe Meat and Poultry Inspection Panel shall 
review, evaluate, and make comments and recommendations in the form of 
a report to the Secretary on the adequacy, necessity, safety, cost-
effectiveness, and scientific merit of the following:
            ``(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 meat inspection regulations, either 
        in notice, proposed, or final form, promulgated by virtue of 
        authority granted by this Act and within the time limits 
        prescribed for formal comments on such changes.
            ``(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 meat inspection system under this Act.
    ``(c) Composition of Panel.--The Safe Meat and Poultry Inspection 
Panel shall be composed of 7 members, not less than 5 of which members 
shall be from the food, meat, and poultry science profession, appointed 
to staggered terms not to exceed three years by the Secretary from 
nominations received from the National Institutes of Health and the 
American Meat Science Association and based upon the professional 
qualifications of the nominees.
    ``(d) Nominations.--In constituting the original Safe Meat and 
Poultry Inspection Panel, the Secretary shall initially solicit 6 
nominees from the National Institutes of Health and 6 nominees from the 
American Meat Science Association for membership on the panel. 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 American Meat Science Association. Nominees shall 
have a background in public health issues and a scientific expertise in 
food, meat, and poultry sciences or in veterinary science. The 
Secretary may require nominees to submit such additional information as 
the Secretary may deem necessary prior to completing the selection 
process. Should any list of nominees provided under this subsection be 
unsatisfactory, the Secretary may request an additional set of nominees 
from the nominating entities.
    ``(e) Compensation.--Each member of the panel shall receive per 
diem compensation at a rate not in excess of that fixed for GS-18 of 
the General Schedule as may be determined by the Secretary, except that 
any such member who holds another office or position under the Federal 
Government the compensation of which exceeds such rate may elect to 
receive compensation at the rate provided for such other office or 
position in lieu of the compensation provided by this subsection.
    ``(f) Conflict of Interest.--The Secretary shall promulgate 
regulations regarding conflicts of interest with respect to the members 
of the panel.
    ``(g) Publication in Federal Register.--Any report of the panel to 
the Secretary shall be published in the Federal Register.
    ``(h) Secretarial Response.--Within 90 days of the publication of a 
panel report under this section, the Secretary shall publish in the 
Federal Register any response required of the Secretary to that report.
    ``(i) Funding.--From funds available to the Secretary, the 
Secretary shall allocate such sums as may be necessary to carry out 
this section.''.
    (b) 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 thereof the following new section:

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

    ``The advisory panel known as the `Safe Meat and Poultry Inspection 
Panel' established in section 411 of the Federal Meat Inspection Act 
shall also review, evaluate and make comments and recommendations in 
the form of a report to the Secretary on the adequacy, necessity, 
safety, cost-effectiveness, and scientific merit of the following:
            (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, or techniques of plants 
        inspected under this Act.
            (3) Formal changes in poultry inspection regulations, 
        either in notice, proposed, or final form, promulgated by 
        virtue of authority granted by this Act and within the time 
        limits prescribed for formal comments on such changes.
            (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.''.
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