[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 1541 Engrossed in Senate (ES)]

  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
104th CONGRESS
  2d Session
                                S. 1541

_______________________________________________________________________

                                 AN ACT


 
     To extend, reform, and improve agricultural commodity, trade, 
       conservation, and other programs, and for other purposes.

    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 
Reform and Improvement Act of 1996''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
            TITLE I--AGRICULTURAL MARKET TRANSITION PROGRAM

Sec. 101. Short title.
Sec. 102. Definitions.
Sec. 103. Production flexibility contracts.
Sec. 104. Nonrecourse marketing assistance loans and loan deficiency 
                            payments.
Sec. 105. Payment limitations.
Sec. 106. Peanut program.
Sec. 107. Sugar program.
Sec. 108. Administration.
Sec. 109. Suspension and repeal of permanent authorities.
Sec. 110. Effect of amendments.
                      TITLE II--AGRICULTURAL TRADE

Subtitle A--Amendments to Agricultural Trade Development and Assistance 
                    Act of 1954 and Related Statutes

Sec. 201. Food aid to developing countries.
Sec. 202. Trade and development assistance.
Sec. 203. Agreements regarding eligible countries and private entities.
Sec. 204. Terms and conditions of sales.
Sec. 205. Use of local currency payment.
Sec. 206. Value-added foods.
Sec. 207. Eligible organizations.
Sec. 208. Generation and use of foreign currencies.
Sec. 209. General levels of assistance under Public Law 480.
Sec. 210. Food aid consultative group.
Sec. 211. Support of nongovernmental organizations.
Sec. 212. Commodity determinations.
Sec. 213. General provisions.
Sec. 214. Agreements.
Sec. 215. Use of commodity credit corporation.
Sec. 216. Administrative provisions.
Sec. 217. Expiration date.
Sec. 218. Regulations.
Sec. 219. Independent evaluation of programs.
Sec. 220. Authorization of appropriations.
Sec. 221. Coordination of foreign assistance programs.
Sec. 222. Micronutrient fortification pilot program.
Sec. 223. Use of certain local currency.
Sec. 224. Levels of assistance under farmer-to-farmer program.
Sec. 225. Food security commodity reserve.
Sec. 226. Protein byproducts derived from alcohol fuel production.
Sec. 227. Food for progress program.
Sec. 228. Use of foreign currency proceeds from export sales financing.
Sec. 229. Stimulation of foreign production.
        Subtitle B--Amendments to Agricultural Trade Act of 1978

Sec. 241. Agricultural export promotion strategy.
Sec. 242. Export credits.
Sec. 243. Market promotion program.
Sec. 244. Export enhancement program.
Sec. 245. Arrival certification.
Sec. 246. Compliance.
Sec. 247. Regulations.
Sec. 248. Trade compensation and assistance programs.
Sec. 249. Foreign agricultural service.
Sec. 250. Reports.
                       Subtitle C--Miscellaneous

Sec. 251. Reporting requirements relating to tobacco.
Sec. 252. Triggered export enhancement.
Sec. 253. Disposition of commodities to prevent waste.
Sec. 254. Direct sales of dairy products.
Sec. 255. Export sales of dairy products.
Sec. 256. Debt-for-health-and-protection swap.
Sec. 257. Policy on expansion of international markets.
Sec. 258. Policy on maintenance and development of export markets.
Sec. 259. Policy on trade liberalization.
Sec. 260. Agricultural trade negotiations.
Sec. 261. Policy on unfair trade practices.
Sec. 262. Agricultural aid and trade missions.
Sec. 263. Annual reports by agricultural attaches.
Sec. 264. World livestock market price information.
Sec. 265. Orderly liquidation of stocks.
Sec. 266. Sales of extra long staple cotton.
Sec. 267. Regulations.
Sec. 268. Emerging markets.
Sec. 269. Import assistance for CBI beneficiary countries and the 
                            Philippines.
Sec. 270. Studies, reports, and other provisions.
Sec. 271. Implementation of commitments under Uruguay Round Agreements.
Sec. 272. Sense of Congress concerning multilateral disciplines on 
                            credit guarantees.
Sec. 273. Foreign market development cooperator program.
Sec. 274. Price support for rice.
                        TITLE III--CONSERVATION

                        Subtitle A--Definitions

Sec. 301. Definitions.
     Subtitle B--Environmental Conservation Acreage Reserve Program

Sec. 311. Environmental conservation acreage reserve program.
Sec. 312. Conservation reserve program.
Sec. 313. Wetlands reserve program.
Sec. 314. Environmental quality incentives program.
                    Subtitle C--Conservation Funding

Sec. 321. Conservation funding.
     Subtitle D--National Natural Resources Conservation Foundation

Sec. 331. Short title.
Sec. 332. Definitions.
Sec. 333. National Natural Resources Conservation Foundation.
Sec. 334. Composition and operation.
Sec. 335. Officers and employees.
Sec. 336. Corporate powers and obligations of the Foundation.
Sec. 337. Administrative services and support.
Sec. 338. Audits and petition of Attorney General for equitable relief.
Sec. 339. Release from liability.
Sec. 340. Authorization of appropriations.
                       Subtitle E--Miscellaneous

Sec. 351. Flood risk reduction.
Sec. 352. Forestry.
Sec. 353. State technical committees.
Sec. 354. Conservation of private grazing land.
Sec. 355. Conforming amendments.
Sec. 356. Water bank program.
Sec. 357. Flood water retention pilot projects.
Sec. 358. Wetland conservation exemption.
Sec. 359. Floodplain easements.
Sec. 360. Resource conservation and development program 
                            reauthorization.
Sec. 361. Conservation reserve new acreage.
Sec. 362. Repeal of report requirement.
Sec. 363. Watershed protection and flood prevention act amendments.
Sec. 364. Abandonment of converted wetlands.
                     TITLE IV--NUTRITION ASSISTANCE

Sec. 401. Food stamp program.
Sec. 402. Commodity distribution program; commodity supplemental food 
                            program.
Sec. 403. Emergency food assistance program.
Sec. 404. Soup kitchens program.
Sec. 405. National commodity processing.
                         TITLE V--MISCELLANEOUS

              Subtitle A--General Miscellaneous Provisions

Sec. 501. Fund for dairy producers to pay for nutrient management.
Sec. 502. Crop insurance.
Sec. 503. Revenue insurance.
Sec. 504. Collection and use of agricultural quarantine and inspection 
                            fees.
Sec. 505. Commodity Credit Corporation interest rate.
Sec. 506. Everglades Agricultural Area.
Sec. 507. Fund for Rural America.
    Subtitle B--Options Pilot Programs and Risk Management Education

Sec. 511. Short title.
Sec. 512. Purpose.
Sec. 513. Pilot programs.
Sec. 514. Terms and conditions.
Sec. 515. Notice.
Sec. 516. Commodity Credit Corporation.
Sec. 517. Risk management education.
     Subtitle C--Commercial Transportation of Equine for Slaughter

Sec. 521. Findings.
Sec. 522. Definitions.
Sec. 523. Standards for humane commercial transportation of equine for 
                            slaughter.
Sec. 524. Records.
Sec. 525. Agents.
Sec. 526. Cooperative agreements.
Sec. 527. Investigations and inspections.
Sec. 528. Interference with enforcement.
Sec. 529. Jurisdiction of courts.
Sec. 530. Civil and criminal penalties.
Sec. 531. Payments for temporary or medical assistance for equine due 
                            to violations.
Sec. 532. Relationship to State law.
Sec. 533. Authorization of appropriations.
                       Subtitle D--Miscellaneous

Sec. 541. Livestock dealer trust.
Sec. 542. Planting of energy crops.
Sec. 543. Reimbursable agreements.
Sec. 544. Swine health protection.
Sec. 545. Cooperative work for protection, management, and improvement 
                            of National Forest System.
Sec. 546. Amendment of the Virus-Serum Toxin Act of 1913.
Sec. 547. Overseas tort claims.
Sec. 548. Graduate School of the United States Department of 
                            Agriculture.
Sec. 549. Student intern subsistence program.
Sec. 550. Conveyance of land to White Oak Cemetery.
Sec. 551. Advisory board on agricultural air quality.
Sec. 552. Water systems for rural and Native villages in Alaska.
Sec. 553. Eligibility for grants to broadcasting systems.
Sec. 554. Wildlife Habitat Incentives Program.
Sec. 555. Indian reservations.
Sec. 556. ICD reimbursement for overhead expenses.
Sec. 557. Clarification of effect of resource planning on allocation or 
                            use of water.
                            TITLE VI--CREDIT

                    Subtitle A--Agricultural Credit

                    chapter 1--farm ownership loans

Sec. 601. Limitation on direct farm ownership loans.
Sec. 602. Purposes of loans.
Sec. 603. Soil and water conservation and protection.
Sec. 604. Interest rate requirements.
Sec. 605. Insurance of loans.
Sec. 606. Loans guaranteed.
                       chapter 2--operating loans

Sec. 611. Limitation on direct operating loans.
Sec. 612. Purposes of operating loans.
Sec. 613. Participation in loans.
Sec. 614. Line-of-credit loans.
Sec. 615. Insurance of operating loans.
Sec. 616. Special assistance for beginning farmers and ranchers.
Sec. 617. Limitation on period for which borrowers are eligible for 
                            guaranteed assistance.
                       chapter 3--emergency loans

Sec. 621. Hazard insurance requirement.
Sec. 622. Maximum emergency loan indebtedness.
Sec. 623. Insurance of emergency loans.
                  chapter 4--administrative provisions

Sec. 631. Use of collection agencies.
Sec. 632. Notice of loan service programs.
Sec. 633. Sale of property.
Sec. 634. Definitions.
Sec. 635. Authorization for loans.
Sec. 636. List of certified lenders and inventory property 
                            demonstration project.
Sec. 637. Homestead property.
Sec. 638. Restructuring.
Sec. 639. Transfer of inventory lands.
Sec. 640. Implementation of target participation rates.
Sec. 641. Delinquent borrowers and credit study.
                     chapter 5--general provisions

Sec. 651. Conforming amendments.
                     Subtitle B--Farm Credit System

           chapter 1--agricultural mortgage secondary market

Sec. 661. Definition of real estate.
Sec. 662. Definition of certified facility.
Sec. 663. Duties of Federal Agricultural Mortgage Corporation.
Sec. 664. Powers of the Corporation.
Sec. 665. Federal reserve banks as depositaries and fiscal agents.
Sec. 666. Certification of agricultural mortgage marketing facilities.
Sec. 667. Guarantee of qualified loans.
Sec. 668. Mandatory reserves and subordinated participation interests 
                            eliminated.
Sec. 669. Standards requiring diversified pools.
Sec. 670. Small farms.
Sec. 671. Definition of an affiliate.
Sec. 672. State usury laws superseded.
Sec. 673. Extension of capital transition period.
Sec. 674. Minimum capital level.
Sec. 675. Critical capital level.
Sec. 676. Enforcement levels.
Sec. 677. Recapitalization of the Corporation.
Sec. 678. Liquidation of the Federal Agricultural Mortgage Corporation.
                      chapter 2--regulatory relief

Sec. 681. Compensation of association personnel.
Sec. 682. Use of private mortgage insurance.
Sec. 683. Removal of certain borrower reporting requirement.
Sec. 684. Reform of regulatory limitations on dividend, member 
                            business, and voting practices of eligible 
                            farmer-owned cooperatives.
Sec. 685. Removal of Federal Government certification requirement for 
                            certain private sector financings.
Sec. 686. Borrower stock.
Sec. 687. Disclosure relating to adjustable rate loans.
Sec. 688. Borrowers' rights.
Sec. 689. Formation of administrative service entities.
Sec. 690. Joint management agreements.
Sec. 691. Dissemination of quarterly reports.
Sec. 692. Regulatory review.
Sec. 693. Examination of Farm Credit System Institutions.
Sec. 694. Conservatorships and receiverships.
Sec. 695. Farm Credit Insurance Fund operations.
Sec. 696. Examinations by the Farm Credit System Insurance Corporation.
Sec. 697. Powers with respect to troubled insured system banks.
Sec. 698. Oversight and regulatory actions by the Farm Credit System 
                            Insurance Corporation.
Sec. 699. Farm Credit System Insurance Corporation Board of Directors.
Sec. 699A. Liability for making criminal referrals.
                      TITLE VII--RURAL DEVELOPMENT

  Subtitle A--Amendments to the Food, Agriculture, Conservation, and 
                           Trade Act of 1990

                     chapter 1--general provisions

Sec. 701. Rural investment partnerships.
Sec. 702. Water and waste facility financing.
Sec. 703. Rural wastewater circuit rider program.
Sec. 704. Telemedicine and distance learning services in rural areas.
Sec. 705. Limitation on authorization of appropriations for rural 
                            technology grants.
Sec. 706. Monitoring the economic progress of rural America.
Sec. 707. Analysis by Office of Technology Assessment.
Sec. 708. Rural health infrastructure improvement.
Sec. 709. Census of agriculture.
   chapter 2--alternative agricultural research and commercialization

Sec. 721. Definitions.
Sec. 722. Alternative Agricultural Research and Commercialization 
                            Corporation.
Sec. 723. Board of directors, employees, and facilities.
Sec. 724. Research and development grants, contracts, and agreements.
Sec. 725. Commercialization assistance.
Sec. 726. General rules regarding the provision of assistance.
Sec. 727. Regional centers.
Sec. 728. Alternative Agricultural Research and Commercialization 
                            Revolving Fund.
Sec. 729. Procurement preferences for products receiving corporation 
                            assistance.
Sec. 730. Business plan and feasibility study and report.
 Subtitle B--Amendments to the Consolidated Farm and Rural Development 
                                  Act

                     chapter 1--general provisions

Sec. 741. Water and waste facility loans and grants.
Sec. 742. Emergency community water assistance grant program for small 
                            communities.
Sec. 743. Emergency community water assistance grant program for 
                            smallest communities.
Sec. 744. Agricultural Credit Insurance Fund.
Sec. 745. Rural Development Insurance Fund.
Sec. 746. Insured watershed and resource conservation and development 
                            loans.
Sec. 747. Rural industrialization assistance.
Sec. 748. Administration.
Sec. 749. Authorization of appropriations.
Sec. 750. Testimony before congressional committees.
Sec. 751. Prohibition on use of loans for certain purposes.
Sec. 752. Rural development certified lenders program.
Sec. 753. System for delivery of certain rural development programs.
Sec. 754. State rural economic development review panel.
Sec. 755. Limited transfer authority of loan amounts.
Sec. 756. Allocation and transfer of loan guarantee authority.
Sec. 757. National sheep industry improvement center.
             chapter 2--rural community advancement program

Sec. 761. Rural community advancement program.
Sec. 762. Community facilities grant program.
    Subtitle C--Amendments to the Rural Electrification Act of 1936

Sec. 771. Purposes; investigations and reports.
Sec. 772. Authorization of appropriations.
Sec. 773. Loans for electrical plants and transmission lines.
Sec. 774. Loans for electrical and plumbing equipment.
Sec. 775. Testimony on budget requests.
Sec. 776. Transfer of functions of administration created by executive 
                            order.
Sec. 777. Annual report.
Sec. 778. Prohibition on restricting water and waste facility services 
                            to electric customers.
Sec. 779. Telephone loan terms and conditions.
Sec. 780. Privatization program.
Sec. 781. Rural business incubator fund.
         Subtitle D--Miscellaneous Rural Development Provisions

Sec. 791. Interest rate formula.
Sec. 792. Grants for financially stressed farmers, dislocated farmers, 
                            and rural families.
Sec. 793. Cooperative agreements.
              TITLE VIII--RESEARCH EXTENSION AND EDUCATION

 Subtitle A--Amendments to National Agricultural Research, Extension, 
          and Teaching Policy Act of 1977 and Related Statutes

Sec. 801. Purposes of agricultural research, extension, and education.
Sec. 802. Subcommittee on Food, Agricultural, and Forestry Research.
Sec. 803. Joint Council on Food and Agricultural Sciences.
Sec. 804. National Agricultural Research, Extension, Education, and 
                            Economics Advisory Board.
Sec. 805. Agricultural Science and Technology Review Board.
Sec. 806. Federal Advisory Committee Act exemption for Federal-State 
                            cooperative programs.
Sec. 807. Coordination and planning of agricultural research, 
                            extension, and education.
Sec. 808. Grants and fellowships for food and agricultural sciences 
                            education.
Sec. 809. Grants for research on the production and marketing of 
                            alcohols and industrial hydrocarbons from 
                            agricultural commodities and forest 
                            products.
Sec. 810. Policy research centers.
Sec. 811. Humannutritionintervention and health promotion research 
                            program.
Sec. 812. Food and nutrition education program.
Sec. 813. Purposes and findings relating to animal health and disease 
                            research.
Sec. 814. Animal Health Science Research Advisory Board.
Sec. 815. Animal health and disease continuing research.
Sec. 816. Animal health and disease national or regional research.
Sec. 817. Resident instruction program at 1890 land-grant colleges.
Sec. 818. Grant program to upgrade agricultural and food sciences 
                            facilities at 1890 land-grant colleges.
Sec. 819. National research and training centennial centers 
                            authorization.
Sec. 820. Grants to States for international trade development centers.
Sec. 821. Agricultural research programs.
Sec. 822. Extension education.
Sec. 823. Supplemental and alternative crops research.
Sec. 824. Aquaculture assistance programs.
Sec. 825. Rangeland research.
Sec. 826. Technical amendments.
 Subtitle B--Amendments to Food, Agriculture, Conservation, and Trade 
                              Act of 1990

Sec. 831. Water quality research, education, and coordination.
Sec. 832. Education program regarding handling of agricultural 
                            chemicals and agricultural chemical 
                            containers.
Sec. 833. Program administration.
Sec. 834. National genetics resources program.
Sec. 835. National agricultural weather information system.
Sec. 836. Research regarding production, preparation, processing, 
                            handling, and storage of agricultural 
                            products.
Sec. 837. Plant and animal pest and disease control program.
Sec. 838. Livestock product safety and inspection program.
Sec. 839. Plant genome mapping program.
Sec. 840. Specialized research programs.
Sec. 841. Agricultural telecommunications program.
Sec. 842. National centers for agricultural product quality research.
Sec. 843. Turkey research center authorization.
Sec. 844. Special grant to study constraints on agricultural trade.
Sec. 845. Pilot project to coordinate food and nutrition education 
                            programs.
Sec. 846. Assistive technology program for farmers with disabilities.
Sec. 847. Demonstration projects.
Sec. 848. National rural information center clearinghouse.
Sec. 849. Global climate change.
Sec. 850. Technical amendments.
             Subtitle C--Miscellaneous Research Provisions

Sec. 861. Critical agricultural materials research.
Sec. 862. 1994 Institutions.
Sec. 863. Smith-Lever Act funding for 1890 land-grant colleges, 
                            including Tuskegee University and the 
                            District of Columbia.
Sec. 864. Committee of nine.
Sec. 865. Agricultural research facilities.
Sec. 866. National competitive research initiative.
Sec. 867. Cotton crop reports.
Sec. 868. Rural development research and education.
Sec. 869. Human nutrition research.
Sec. 870. Dairy goat research program.
Sec. 871. Grants to upgrade 1890 land-grant college extension 
                            facilities.
Sec. 872. Stuttgart National Aquaculture Research Center.
Sec. 873. National aquaculture policy, planning, and development.
Sec. 874. Expansion of authorities related to the national arboretum.
Sec. 875. Study of agricultural research service.
Sec. 876. Labeling of domestic and imported lamb and mutton.
Sec. 877. Sense of Senate.
                    TITLE IX--AGRICULTURAL PROMOTION

                          Subtitle A--Popcorn

Sec. 901. Short title.
Sec. 902. Findings and declaration of policy.
Sec. 903. Definitions.
Sec. 904. Issuance of orders.
Sec. 905. Required terms in orders.
Sec. 906. Referenda.
Sec. 907. Petition and review.
Sec. 908. Enforcement.
Sec. 909. Investigations and power to subpoena.
Sec. 910. Relation to other programs.
Sec. 911. Regulations.
Sec. 912. Authorization of appropriations.
                    Subtitle B--Canola and Rapeseed

Sec. 921. Short title.
Sec. 922. Findings and declaration of policy.
Sec. 923. Definitions.
Sec. 924. Issuance and amendment of orders.
Sec. 925. Required terms in orders.
Sec. 926. Assessments.
Sec. 927. Referenda.
Sec. 928. Petition and review.
Sec. 929. Enforcement.
Sec. 930. Investigations and power to subpoena.
Sec. 931. Suspension or termination of an order.
Sec. 932. Regulations.
Sec. 933. Authorization of appropriations.
                         Subtitle C--Kiwifruit

Sec. 941. Short title.
Sec. 942. Findings and purposes.
Sec. 943. Definitions.
Sec. 944. Issuance of orders.
Sec. 945. National Kiwifruit Board.
Sec. 946. Required terms in order.
Sec. 947. Permissive terms in order.
Sec. 948. Petition and review.
Sec. 949. Enforcement.
Sec. 950. Investigations and power to subpoena.
Sec. 951. Referenda.
Sec. 952. Suspension and termination of order by Secretary.
Sec. 953. Regulations.
Sec. 954. Authorization of appropriations.
             Subtitle D--Commodity Promotion and Evaluation

Sec. 961. Commodity promotion and evaluation.

            TITLE I--AGRICULTURAL MARKET TRANSITION PROGRAM

SEC. 101. SHORT TITLE.

    This title may be cited as the ``Agricultural Market Transition 
Act''.

SEC. 102. DEFINITIONS.

    In this title:
            (1) Considered planted.--The term ``considered planted'' 
        means acreage that is considered planted under title V of the 
        Agricultural Act of 1949 (7 U.S.C. 1461 et seq.) (as in effect 
        prior to the suspension under section 110(b)(1)(J)).
            (2) Contract.--The term ``contract'' means a production 
        flexibility contract entered into under section 103.
            (3) Contract acreage.--The term ``contract acreage'' means 
        1 or more crop acreage bases established for contract 
        commodities under title V of the Agricultural Act of 1949 (as 
        in effect prior to the suspension under section 110(b)(1)(J)) 
        that would have been in effect for the 1996 crop (but for the 
        suspension under section 110(b)(1)(J)).
            (4) Contract commodity.--The term ``contract commodity'' 
        means wheat, corn, grain sorghum, barley, oats, upland cotton, 
        and rice.
            (5) Contract payment.--The term ``contract payment'' means 
        a payment made under section 103 pursuant to a contract.
            (6) Corn.--The term ``corn'' means field corn.
            (7) Department.--The term ``Department'' means the United 
        States Department of Agriculture.
            (8) Farm program payment yield.--The term ``farm program 
        payment yield'' means the farm program payment yield 
        established for the 1995 crop of a contract commodity under 
        title V of the Agricultural Act of 1949 (as in effect prior to 
        the suspension under section 110(b)(1)(J)).
            (9) Loan commodity.--The term ``loan commodity'' means each 
        contract commodity, extra long staple cotton, and oilseeds.
            (10) Oilseed.--The term ``oilseed'' means a crop of 
        soybeans, sunflower seed, rapeseed, canola, safflower, 
        flaxseed, mustard seed, or, if designated by the Secretary, 
        other oilseeds.
            (11) Person.--The term ``person'' means an individual, 
        partnership, firm, joint-stock company, corporation, 
        association, trust, estate, or State agency.
            (12) Producer.--
                    (A) In general.--The term ``producer'' means a 
                person who, as owner, landlord, tenant, or 
                sharecropper, shares in the risk of producing a crop, 
                and is entitled to share in the crop available for 
                marketing from the farm, or would have shared had the 
                crop been produced.
                    (B) Hybrid seed.--The term ``producer'' includes a 
                person growing hybrid seed under contract. In 
                determining the interest of a grower of hybrid seed in 
                a crop, the Secretary shall not take into consideration 
                the existence of a hybrid seed contract.
            (13) Program.--The term ``program'' means the agricultural 
        market transition program established under this title.
            (14) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.
            (15) State.--The term ``State'' means each of the several 
        States of the United States, the District of Columbia, the 
        Commonwealth of Puerto Rico, and any other territory or 
        possession of the United States.
            (16) United states.--The term ``United States'', when used 
        in a geographical sense, means all of the States.

SEC. 103. PRODUCTION FLEXIBILITY CONTRACTS.

    (a) Contracts Authorized.--
            (1) Offer and terms.--Beginning as soon as practicable 
        after the date of the enactment of this title, the Secretary 
        shall offer to enter into a contract with an eligible owner or 
        operator described in paragraph (2) on a farm containing 
        eligible farmland. Under the terms of a contract, the owner or 
        operator shall agree, in exchange for annual contract payments, 
        to comply with--
                    (A) the conservation plan for the farm prepared in 
                accordance with section 1212 of the Food Security Act 
                of 1985 (16 U.S.C. 3812);
                    (B) wetland protection requirements applicable to 
                the farm under subtitle C of title XII of the Act (16 
                U.S.C. 3821 et seq.); and
                    (C) the planting flexibility requirements of 
                subsection (j).
            (2) Eligible owners and operators described.--The following 
        persons shall be considered to be an owner or operator eligible 
        to enter into a contract:
                    (A) An owner of eligible farmland who assumes all 
                of the risk of producing a crop.
                    (B) An owner of eligible farmland who shares in the 
                risk of producing a crop.
                    (C) An operator of eligible farmland with a share-
                rent lease of the eligible farmland, regardless of the 
                length of the lease, if the owner enters into the same 
                contract.
                    (D) An operator of eligible farmland who cash rents 
                the eligible farmland under a lease expiring on or 
                after September 30, 2002, in which case the consent of 
                the owner is not required.
                    (E) An operator of eligible farmland who cash rents 
                the eligible farmland under a lease expiring before 
                September 30, 2002, if the owner consents to the 
                contract.
                    (F) An owner of eligible farmland who cash rents 
                the eligible farmland and the lease term expires before 
                September 30, 2002, but only if the actual operator of 
                the farm declines to enter into a contract. In the case 
                of an owner covered by this subparagraph, contract 
                payments shall not begin under a contract until the 
                fiscal year following the fiscal year in which the 
                lease held by the nonparticipating operator expires.
                    (G) An owner or operator described in a preceding 
                subparagraph regardless of whether the owner or 
                operator purchased catastrophic risk protection for a 
                fall-planted 1996 crop under section 508(b) of the 
                Federal Crop Insurance Act (7 U.S.C. 1508(b)).
            (3) Tenants and sharecroppers.--In carrying out this 
        section, the Secretary shall provide adequate safeguards to 
        protect the interests of operators who are tenants and 
        sharecroppers.
    (b) Elements.--
            (1) Time for contracting.--
                    (A) Deadline.--Except as provided in subparagraph 
                (B), the Secretary may not enter into a contract after 
                April 15, 1996.
                    (B) Conservation reserve lands.--
                            (i) In general.--At the beginning of each 
                        fiscal year, the Secretary shall allow an 
                        eligible owner or operator on a farm covered by 
                        a conservation reserve contract entered into 
                        under section 1231 of the Food Security Act of 
                        1985 (16 U.S.C. 3831) that terminates after the 
                        date specified in subparagraph (A) to enter 
                        into or expand a production flexibility 
                        contract to cover the contract acreage of the 
                        farm that was subject to the former 
                        conservation reserve contract.
                            (ii) Amount.--Contract payments made for 
                        contract acreage under this subparagraph shall 
                        be made at the rate and amount applicable to 
                        the annual contract payment level for the 
                        applicable crop.
            (2) Duration of contract.--
                    (A) Beginning date.--A contract shall begin with--
                            (i) the 1996 crop of a contract commodity; 
                        or
                            (ii) in the case of acreage that was 
                        subject to a conservation reserve contract 
                        described in paragraph (1)(B), the date the 
                        production flexibility contract was entered 
                        into or expanded to cover the acreage.
                    (B) Ending date.--A contract shall extend through 
                the 2002 crop.
            (3) Estimation of contract payments.--At the time the 
        Secretary enters into a contract, the Secretary shall provide 
        an estimate of the minimum contract payments anticipated to be 
        made during at least the first fiscal year for which contract 
        payments will be made.
    (c) Eligible Farmland Described.--Land shall be considered to be 
farmland eligible for coverage under a contract only if the land has 
contract acreage attributable to the land and--
            (1) for at least 1 of the 1991 through 1995 crops, at least 
        a portion of the land was enrolled in the acreage reduction 
        program authorized for a crop of a contract commodity under 
        section 101B, 103B, 105B, or 107B of the Agricultural Act of 
        1949 (as in effect prior to the amendment made by section 
        110(b)(2)) or was considered planted, including land on a farm 
        that is owned or leased by a beginning farmer (as determined by 
        the Secretary) that the Secretary determines is necessary to 
        establish a fair and equitable crop acreage base;
            (2) was subject to a conservation reserve contract under 
        section 1231 of the Food Security Act of 1985 (16 U.S.C. 3831) 
        whose term expired, or was voluntarily terminated, on or after 
        January 1, 1995; or
            (3) is released from coverage under a conservation reserve 
        contract by the Secretary during the period beginning on 
        January 1, 1995, and ending on the date specified in subsection 
        (b)(1)(A).
    (d) Time for Payment.--
            (1) In general.--An annual contract payment shall be made 
        not later than September 30 of each of fiscal years 1996 
        through 2002.
            (2) Advance payments.--
                    (A) Fiscal year 1996.--At the option of the owner 
                or operator, 50 percent of the contract payment for 
                fiscal year 1996 shall be made not later than June 15, 
                1996.
                    (B) Subsequent fiscal years.--At the option of the 
                owner or operator for fiscal year 1997 and each 
                subsequent fiscal year, 50 percent of the annual 
                contract payment shall be made on December 15.
    (e) Amounts Available for Contract Payments for Each Fiscal Year.--
            (1) In general.--The Secretary shall, to the maximum extent 
        practicable, expend on a fiscal year basis the following 
        amounts to satisfy the obligations of the Secretary under all 
        contracts:
                    (A) For fiscal year 1996, $5,570,000,000.
                    (B) For fiscal year 1997, $5,385,000,000.
                    (C) For fiscal year 1998, $5,800,000,000.
                    (D) For fiscal year 1999, $5,603,000,000.
                    (E) For fiscal year 2000, $5,130,000,000.
                    (F) For fiscal year 2001, $4,130,000,000.
                    (G) For fiscal year 2002, $4,008,000,000.
            (2) Allocation.--The amount made available for a fiscal 
        year under paragraph (1) shall be allocated as follows:
                    (A) For wheat, 26.26 percent.
                    (B) For corn, 46.22 percent.
                    (C) For grain sorghum, 5.11 percent.
                    (D) For barley, 2.16 percent.
                    (E) For oats, 0.15 percent.
                    (F) For upland cotton, 11.63 percent.
                    (G) For rice, 8.47 percent.
            (3) Adjustment.--The Secretary shall adjust the amounts 
        allocated for each contract commodity under paragraph (2) for a 
        particular fiscal year by--
                    (A) subtracting an amount equal to the amount, if 
                any, necessary to satisfy payment requirements under 
                sections 103B, 105B, and 107B of the Agricultural Act 
                of 1949 (as in effect prior to the amendment made by 
                section 110(b)(2)) for the 1994 and 1995 crops of the 
                commodity;
                    (B) adding an amount equal to the sum of all 
                repayments of deficiency payments received under 
                section 114(a)(2) of the Agricultural Act of 1949 for 
                the commodity;
                    (C) to the maximum extent practicable, adding an 
                amount equal to the sum of all contract payments 
                withheld by the Secretary, at the request of an owner 
                or operator subject to a contract, as an offset against 
                repayments of deficiency payments otherwise required 
                under section 114(a)(2) of the Act (as so in effect) 
                for the commodity; and
                    (D) adding an amount equal to the sum of all 
                refunds of contract payments received during the 
                preceding fiscal year under subsection (h) for the 
                commodity.
            (4) Additional rice allocation.--In addition to the 
        allocations provided under paragraphs (1), (2), and (3), the 
        amounts made available for rice contract payments shall be 
        increased by $17,000,000 for each of fiscal years 1997 through 
        2002.
    (f) Determination of Contract Payments.--
            (1) Individual payment quantity of contract commodities.--
        For each contract, the payment quantity of a contract commodity 
        for each fiscal year shall be equal to the product of--
                    (A) 85 percent of the contract acreage; and
                    (B) the farm program payment yield.
            (2) Annual payment quantity of contract commodities.--The 
        payment quantity of each contract commodity covered by all 
        contracts for each fiscal year shall equal the sum of the 
        amounts calculated under paragraph (1) for each individual 
        contract.
            (3) Annual payment rate.--The payment rate for a contract 
        commodity for each fiscal year shall be equal to--
                    (A) the amount made available under subsection (e) 
                for the contract commodity for the fiscal year; divided 
                by
                    (B) the amount determined under paragraph (2) for 
                the fiscal year.
            (4) Annual payment amount.--The amount to be paid under a 
        contract in effect for each fiscal year with respect to a 
        contract commodity shall be equal to the product of--
                    (A) the payment quantity determined under paragraph 
                (1) with respect to the contract; and
                    (B) the payment rate in effect under paragraph (3).
            (5) Assignment of contract payments.--The provisions of 
        section 8(g) of the Soil Conservation and Domestic Allotment 
        Act (16 U.S.C. 590h(g)) (relating to assignment of payments) 
        shall apply to contract payments under this subsection. The 
        owner or operator making the assignment, or the assignee, shall 
        provide the Secretary with notice, in such manner as the 
        Secretary may require in the contract, of any assignment made 
        under this paragraph.
            (6) Sharing of contract payments.--The Secretary shall 
        provide for the sharing of contract payments among the owners 
        and operators subject to the contract on a fair and equitable 
        basis.
    (g) Payment Limitation.--The total amount of contract payments made 
to a person under a contract during any fiscal year may not exceed the 
payment limitations established under sections 1001 through 1001C of 
the Food Security Act of 1985 (7 U.S.C. 1308 through 1308-3).
    (h) Effect of Violation.--
            (1) Termination of contract.--Except as provided in 
        paragraph (2), if an owner or operator subject to a contract 
        violates the conservation plan for the farm containing eligible 
        farmland under the contract, wetland protection requirements 
        applicable to the farm, or the planting flexibility 
        requirements of subsection (j), the Secretary shall terminate 
        the contract with respect to the owner or operator on each farm 
        in which the owner or operator has an interest. On the 
        termination, the owner or operator shall forfeit all rights to 
        receive future contract payments on each farm in which the 
        owner or operator has an interest and shall refund to the 
        Secretary all contract payments received by the owner or 
        operator during the period of the violation, together with 
        interest on the contract payments as determined by the 
        Secretary.
            (2) Refund or adjustment.--If the Secretary determines that 
        a violation does not warrant termination of the contract under 
        paragraph (1), the Secretary may require the owner or operator 
        subject to the contract--
                    (A) to refund to the Secretary that part of the 
                contract payments received by the owner or operator 
                during the period of the violation, together with 
                interest on the contract payments as determined by the 
                Secretary; or
                    (B) to accept a reduction in the amount of future 
                contract payments that is proportionate to the severity 
                of the violation, as determined by the Secretary.
            (3) Foreclosure.--An owner or operator subject to a 
        contract may not be required to make repayments to the 
        Secretary of amounts received under the contract if the 
        contract acreage has been foreclosed on and the Secretary 
        determines that forgiving the repayments is appropriate in 
        order to provide fair and equitable treatment. This paragraph 
        shall not void the responsibilities of such an owner or 
        operator under the contract if the owner or operator continues 
        or resumes operation, or control, of the contract acreage. On 
        the resumption of operation or control over the contract 
        acreage by the owner or operator, the provisions of the 
        contract in effect on the date of the foreclosure shall apply.
            (4) Review.--A determination of the Secretary under this 
        subsection shall be considered to be an adverse decision for 
        purposes of the availability of administrative review of the 
        determination.
    (i) Transfer of Interest in Lands Subject to Contract.--
            (1) Effect of transfer.--Except as provided in paragraph 
        (2), the transfer by an owner or operator subject to a contract 
        of the right and interest of the owner or operator in the 
        contract acreage shall result in the termination of the 
        contract with respect to the acreage, effective on the date of 
        the transfer, unless the transferee of the acreage agrees with 
        the Secretary to assume all obligations of the contract. At the 
        request of the transferee, the Secretary may modify the 
        contract if the modifications are consistent with the 
        objectives of this section as determined by the Secretary.
            (2) Exception.--If an owner or operator who is entitled to 
        a contract payment dies, becomes incompetent, or is otherwise 
        unable to receive the contract payment, the Secretary shall 
        make the payment, in accordance with regulations prescribed by 
        the Secretary.
    (j) Planting Flexibility.--
            (1) Permitted crops.--Subject to paragraph (2), any 
        commodity or crop may be planted on contract acreage on a farm.
            (2) Limitations.--
                    (A) Haying and grazing.--
                            (i) Time limitations.--Haying and grazing 
                        on land exceeding 15 percent of the contract 
                        acreage on a farm as provided in clause (iii) 
                        shall be permitted, except during any 
                        consecutive 5-month period between April 1 and 
                        October 31 that is determined by the State 
                        committee established under section 8(b) of the 
                        Soil Conservation and Domestic Allotment Act 
                        (16 U.S.C. 590h(b)) for a State. In the case of 
                        a natural disaster, the Secretary may permit 
                        unlimited haying and grazing on the contract 
                        acreage of a farm.
                            (ii) Contract commodities.--Contract 
                        acreage planted to a contract commodity during 
                        the crop year may be hayed or grazed without 
                        limitation.
                            (iii) Haying and grazing limitation on 
                        portion of contract acreage.--Unlimited haying 
                        and grazing shall be permitted on not more than 
                        15 percent of the contract acreage on a farm.
                    (B) Alfalfa.--Alfalfa may be planted for harvest 
                without limitation on the contract acreage on a farm, 
                except that each contract acre that is planted for 
                harvest to alfalfa in excess of 15 percent of the total 
                contract acreage on a farm shall be ineligible for 
                contract payments.
                    (C) Fruits and vegetables.--
                            (i) In general.--The planting for harvest 
                        of fruits and vegetables shall be prohibited on 
                        contract acreage, unless there is a history of 
                        double cropping of a contract commodity and 
                        fruits and vegetables.
                            (ii) Unrestricted vegetables.--Lentils, 
                        mung beans, and dry peas may be planted without 
                        limitation on contract acreage.
    (k) Conservation Farm Option.--
            (1) In general.--The Secretary shall offer eligible owners 
        and operators with contract acreage under this title on a farm 
        who also have entered into a conservation reserve program 
        contract under subchapter B of chapter 1 of subtitle D of title 
        XII of the Food Security Act of 1985 (7 U.S.C. 3831 et seq.), 
        the option of entering into a conservation farm option contract 
        for a period of 10 years, as an alternative to the market 
        transition payment contract.
            (2) Terms.--Under the conservation farm option contract--
                    (A) the Secretary shall provide eligible owners and 
                operators with payments that reflect the Secretary's 
                estimate of the payments and benefits the eligible 
                owner or operator is expected to receive during the 10-
                year period under--
                            (i) conservation cost-share programs 
                        administered by the Secretary;
                            (ii) conservation reserve program rental 
                        and cost-share payments;
                            (iii) market transition payments; and
                            (iv) loan programs for contract 
                        commodities, oilseeds, and extra long staple 
                        cotton; and
                    (B) the eligible owner and operator shall--
                            (i) forego eligibility to participate in 
                        the conservation reserve program, conservation 
                        cost-share program payments, and market 
                        transition contracts; and
                            (ii) comply with a conservation plan for 
                        the farm approved by the Secretary that is 
                        consistent with the State conservation farm 
                        option plan established under paragraph (3).
            (3) State conservation farm option plan.--In consultation 
        with the State Technical Committee established under section 
        1261 of the Food Security Act of 1985 (16 U.S.C. 3801), the 
        Secretary shall establish a plan for each State that is 
        designed to--
                    (A) protect wildlife habitat;
                    (B) improve water quality; and
                    (C) reduce soil erosion.

SEC. 104. NONRECOURSE MARKETING ASSISTANCE LOANS AND LOAN DEFICIENCY 
              PAYMENTS.

    (a) Availability of Nonrecourse Loans.--
            (1) Availability.--For each of the 1996 through 2002 crops 
        of each loan commodity, the Secretary shall make available to 
        producers on a farm nonrecourse marketing assistance loans for 
        loan commodities produced on the farm. The loans shall be made 
        under terms and conditions that are prescribed by the Secretary 
        and at the loan rate established under subsection (b) for the 
        loan commodity.
            (2) Eligible production.--The following production shall be 
        eligible for a marketing assistance loan under this section:
                    (A) In the case of a marketing assistance loan for 
                a contract commodity, any production by a producer who 
                has entered into a production flexibility contract.
                    (B) In the case of a marketing assistance loan for 
                extra long staple cotton and oilseeds, any production.
    (b) Loan Rates.--
            (1) Wheat.--
                    (A) Loan rate.--Subject to subparagraph (B), the 
                loan rate for a marketing assistance loan for wheat 
                shall be--
                            (i) not less than 85 percent of the simple 
                        average price received by producers of wheat, 
                        as determined by the Secretary, during the 
                        marketing years for the immediately preceding 5 
                        crops of wheat, excluding the year in which the 
                        average price was the highest and the year in 
                        which the average price was the lowest in the 
                        period; but
                            (ii) not more than $2.58 per bushel.
                    (B) Stocks to use ratio adjustment.--If the 
                Secretary estimates for any marketing year that the 
                ratio of ending stocks of wheat to total use for the 
                marketing year will be--
                            (i) equal to or greater than 30 percent, 
                        the Secretary may reduce the loan rate for 
                        wheat for the corresponding crop by an amount 
                        not to exceed 10 percent in any year;
                            (ii) less than 30 percent but not less than 
                        15 percent, the Secretary may reduce the loan 
                        rate for wheat for the corresponding crop by an 
                        amount not to exceed 5 percent in any year; or
                            (iii) less than 15 percent, the Secretary 
                        may not reduce the loan rate for wheat for the 
                        corresponding crop.
                    (C) No effect on future years.--Any reduction in 
                the loan rate for wheat under subparagraph (B) shall 
                not be considered in determining the loan rate for 
                wheat for subsequent years.
            (2) Feed grains.--
                    (A) Loan rate for corn.--Subject to subparagraph 
                (B), the loan rate for a marketing assistance loan for 
                corn shall be--
                            (i) not less than 85 percent of the simple 
                        average price received by producers of corn, as 
                        determined by the Secretary, during the 
                        marketing years for the immediately preceding 5 
                        crops of corn, excluding the year in which the 
                        average price was the highest and the year in 
                        which the average price was the lowest in the 
                        period; but
                            (ii) not more than $1.89 per bushel.
                    (B) Stocks to use ratio adjustment.--If the 
                Secretary estimates for any marketing year that the 
                ratio of ending stocks of corn to total use for the 
                marketing year will be--
                            (i) equal to or greater than 25 percent, 
                        the Secretary may reduce the loan rate for corn 
                        for the corresponding crop by an amount not to 
                        exceed 10 percent in any year;
                            (ii) less than 25 percent but not less than 
                        12.5 percent, the Secretary may reduce the loan 
                        rate for corn for the corresponding crop by an 
                        amount not to exceed 5 percent in any year; or
                            (iii) less than 12.5 percent the Secretary 
                        may not reduce the loan rate for corn for the 
                        corresponding crop.
                    (C) No effect on future years.--Any reduction in 
                the loan rate for corn under subparagraph (B) shall not 
                be considered in determining the loan rate for corn for 
                subsequent years.
                    (D) Other feed grains.--The loan rate for a 
                marketing assistance loan for grain sorghum, barley, 
                and oats, respectively, shall be established at such 
                level as the Secretary determines is fair and 
                reasonable in relation to the rate that loans are made 
                available for corn, taking into consideration the 
                feeding value of the commodity in relation to corn.
            (3) Upland cotton.--
                    (A) Loan rate.--Subject to subparagraph (B), the 
                loan rate for a marketing assistance loan for upland 
                cotton shall be established by the Secretary at such 
                loan rate, per pound, as will reflect for the base 
                quality of upland cotton, as determined by the 
                Secretary, at average locations in the United States a 
                rate that is not less than the smaller of--
                            (i) 85 percent of the average price 
                        (weighted by market and month) of the base 
                        quality of cotton as quoted in the designated 
                        United States spot markets during 3 years of 
                        the 5-year period ending July 31 in the year in 
                        which the loan rate is announced, excluding the 
                        year in which the average price was the highest 
                        and the year in which the average price was the 
                        lowest in the period; or
                            (ii) 90 percent of the average, for the 15-
                        week period beginning July 1 of the year in 
                        which the loan rate is announced, of the 5 
                        lowest-priced growths of the growths quoted for 
                        Middling 1\3/32\-inch cotton C.I.F. Northern 
                        Europe (adjusted downward by the average 
                        difference during the period April 15 through 
                        October 15 of the year in which the loan is 
                        announced between the average Northern European 
                        price quotation of such quality of cotton and 
                        the market quotations in the designated United 
                        States spot markets for the base quality of 
                        upland cotton), as determined by the Secretary.
                    (B) Limitations.--The loan rate for a marketing 
                assistance loan for upland cotton shall not be less 
                than $0.50 per pound or more than $0.5192 per pound.
            (4) Extra long staple cotton.--The loan rate for a 
        marketing assistance loan for extra long staple cotton shall 
        be--
                    (A) not less than 85 percent of the simple average 
                price received by producers of extra long staple 
                cotton, as determined by the Secretary, during 3 years 
                of the 5 previous marketing years, excluding the year 
                in which the average price was the highest and the year 
                in which the average price was the lowest in the 
                period; but
                    (B) not more than $0.7965 per pound.
            (5) Rice.--The loan rate for a marketing assistance loan 
        for rice shall be $6.50 per hundredweight.
            (6) Oilseeds.--
                    (A) Soybeans.--The loan rate for a marketing 
                assistance loan for soybeans shall be--
                            (i) not less than 85 percent of the simple 
                        average price received by producers of 
                        soybeans, as determined by the Secretary, 
                        during the marketing years for the immediately 
                        preceding 5 crops of soybeans, excluding the 
                        year in which the average price was the highest 
                        and the year in which the average price was the 
                        lowest in the period; but
                            (ii) not less than $4.92 or more than $5.26 
                        per bushel.
                    (B) Sunflower seed, canola, rapeseed, safflower, 
                mustard seed, and flaxseed.--The loan rate for a 
                marketing assistance loan for sunflower seed, canola, 
                rapeseed, safflower, mustard seed, and flaxseed, 
                individually, shall be--
                            (i) not less than 85 percent of the simple 
                        average price received by producers of 
                        sunflower seed, individually, as determined by 
                        the Secretary, during the marketing years for 
                        the immediately preceding 5 crops of sunflower 
                        seed, individually, excluding the year in which 
                        the average price was the highest and the year 
                        in which the average price was the lowest in 
                        the period; but
                            (ii) not less than $0.087 or more than 
                        $0.093 per pound.
                    (C) Other oilseeds.--The loan rates for a marketing 
                assistance loan for other oilseeds shall be established 
                at such level as the Secretary determines is fair and 
                reasonable in relation to the loan rate available for 
                soybeans, except in no event shall the rate for the 
                oilseeds (other than cottonseed) be less than the rate 
                established for soybeans on a per-pound basis for the 
                same crop.
    (c) Term of Loan.--In the case of each loan commodity (other than 
upland cotton or extra long staple cotton), a marketing assistance loan 
under subsection (a) shall have a term of 9 months beginning on the 
first day of the first month after the month in which the loan is made. 
A marketing assistance loan for upland cotton or extra long staple 
cotton shall have a term of 10 months beginning on the first day of the 
first month after the month in which the loan is made. The Secretary 
may not extend the term of a marketing assistance loan for any loan 
commodity.
    (d) Repayment.--
            (1) Repayment rates for wheat and feed grains.--The 
        Secretary shall permit a producer to repay a marketing 
        assistance loan under subsection (a) for wheat, corn, grain 
        sorghum, barley, and oats at a level that the Secretary 
        determines will--
                    (A) minimize potential loan forfeitures;
                    (B) minimize the accumulation of stocks of the 
                commodities by the Federal Government;
                    (C) minimize the cost incurred by the Federal 
                Government in storing the commodities; and
                    (D) allow the commodities produced in the United 
                States to be marketed freely and competitively, both 
                domestically and internationally.
            (2) Repayment rates for upland cotton, oilseeds, and 
        rice.--The Secretary shall permit producers to repay a 
        marketing assistance loan under subsection (a) for upland 
        cotton, oilseeds, and rice at a level that is the lesser of--
                    (A) the loan rate established for upland cotton, 
                oilseeds, and rice, respectively, under subsection (b); 
                or
                    (B) the prevailing world market price for upland 
                cotton, oilseeds, and rice, respectively (adjusted to 
                United States quality and location), as determined by 
                the Secretary.
            (3) Repayment rates for extra long staple cotton.--
        Repayment of a marketing assistance loan for extra long staple 
        cotton shall be at the loan rate established for the commodity 
        under subsection (b), plus interest (as determined by the 
        Secretary).
            (4) Prevailing world market price.--For purposes of 
        paragraph (2)(B) and subsection (f), the Secretary shall 
        prescribe by regulation--
                    (A) a formula to determine the prevailing world 
                market price for each loan commodity, adjusted to 
                United States quality and location; and
                    (B) a mechanism by which the Secretary shall 
                announce periodically the prevailing world market price 
                for each loan commodity.
            (5) Adjustment of prevailing world market price for upland 
        cotton.--
                    (A) In general.--During the period ending July 31, 
                2003, the prevailing world market price for upland 
                cotton (adjusted to United States quality and location) 
                established under paragraph (4) shall be further 
                adjusted if--
                            (i) the adjusted prevailing world market 
                        price is less than 115 percent of the loan rate 
                        for upland cotton established under subsection 
                        (b), as determined by the Secretary; and
                            (ii) the Friday through Thursday average 
                        price quotation for the lowest-priced United 
                        States growth as quoted for Middling (M) 1\3/
                        32\-inch cotton delivered C.I.F. Northern 
                        Europe is greater than the Friday through 
                        Thursday average price of the 5 lowest-priced 
                        growths of upland cotton, as quoted for 
                        Middling (M) 1\3/32\-inch cotton, delivered 
                        C.I.F. Northern Europe (referred to in this 
                        subsection as the ``Northern Europe price'').
                    (B) Further adjustment.--Except as provided in 
                subparagraph (C), the adjusted prevailing world market 
                price for upland cotton shall be further adjusted on 
                the basis of some or all of the following data, as 
                available:
                            (i) The United States share of world 
                        exports.
                            (ii) The current level of cotton export 
                        sales and cotton export shipments.
                            (iii) Other data determined by the 
                        Secretary to be relevant in establishing an 
                        accurate prevailing world market price for 
                        upland cotton (adjusted to United States 
                        quality and location).
                    (C) Limitation on further adjustment.--The 
                adjustment under subparagraph (B) may not exceed the 
                difference between--
                            (i) the Friday through Thursday average 
                        price for the lowest-priced United States 
                        growth as quoted for Middling 1\3/32\-inch 
                        cotton delivered C.I.F. Northern Europe; and
                            (ii) the Northern Europe price.
    (e) Loan Deficiency Payments.--
            (1) Availability.--Except as provided in paragraph (4), the 
        Secretary may make loan deficiency payments available to 
        producers who, although eligible to obtain a marketing 
        assistance loan under subsection (a) with respect to a loan 
        commodity, agree to forgo obtaining the loan for the commodity 
        in return for payments under this subsection.
            (2) Computation.--A loan deficiency payment under this 
        subsection shall be computed by multiplying--
                    (A) the loan payment rate determined under 
                paragraph (3) for the loan commodity; by
                    (B) the quantity of the loan commodity that the 
                producers on a farm are eligible to place under loan 
                but for which the producers forgo obtaining the loan in 
                return for payments under this subsection.
            (3) Loan payment rate.--For purposes of this subsection, 
        the loan payment rate shall be the amount by which--
                    (A) the loan rate established under subsection (b) 
                for the loan commodity; exceeds
                    (B) the rate at which a loan for the commodity may 
                be repaid under subsection (d).
            (4) Exception for extra long staple cotton.--This 
        subsection shall not apply with respect to extra long staple 
        cotton.
    (f) Special Marketing Loan Provisions for Upland Cotton.--
            (1) Cotton user marketing certificates.--
                    (A) Issuance.--Subject to subparagraph (D), during 
                the period ending July 31, 2003, the Secretary shall 
                issue marketing certificates or cash payments to 
                domestic users and exporters for documented purchases 
                by domestic users and sales for export by exporters 
                made in the week following a consecutive 4-week period 
                in which--
                            (i) the Friday through Thursday average 
                        price quotation for the lowest-priced United 
                        States growth, as quoted for Middling (M) 1\3/
                        32\-inch cotton, delivered C.I.F. Northern 
                        Europe exceeds the Northern Europe price by 
                        more than 1.25 cents per pound; and
                            (ii) the prevailing world market price for 
                        upland cotton (adjusted to United States 
                        quality and location) does not exceed 130 
                        percent of the loan rate for upland cotton 
                        established under subsection (b).
                    (B) Value of certificates or payments.--The value 
                of the marketing certificates or cash payments shall be 
                based on the amount of the difference (reduced by 1.25 
                cents per pound) in the prices during the 4th week of 
                the consecutive 4-week period multiplied by the 
                quantity of upland cotton included in the documented 
                sales.
                    (C) Administration of marketing certificates.--
                            (i) Redemption, marketing, or exchange.--
                        The Secretary shall establish procedures for 
                        redeeming marketing certificates for cash or 
                        marketing or exchange of the certificates for 
                        agricultural commodities owned by the Commodity 
                        Credit Corporation in such manner, and at such 
                        price levels, as the Secretary determines will 
                        best effectuate the purposes of cotton user 
                        marketing certificates. Any price restrictions 
                        that would otherwise apply to the disposition 
                        of agricultural commodities by the Commodity 
                        Credit Corporation shall not apply to the 
                        redemption of certificates under this 
                        paragraph.
                            (ii) Designation of commodities and 
                        products.--To the extent practicable, the 
                        Secretary shall permit owners of certificates 
                        to designate the commodities and products, 
                        including storage sites, the owners would 
                        prefer to receive in exchange for certificates. 
                        If any certificate is not presented for 
                        redemption, marketing, or exchange within a 
                        reasonable number of days after the issuance of 
                        the certificate (as determined by the 
                        Secretary), reasonable costs of storage and 
                        other carrying charges, as determined by the 
                        Secretary, shall be deducted from the value of 
                        the certificate for the period beginning after 
                        the reasonable number of days and ending with 
                        the date of the presentation of the certificate 
                        to the Commodity Credit Corporation.
                            (iii) Transfers.--Marketing certificates 
                        issued to domestic users and exporters of 
                        upland cotton may be transferred to other 
                        persons in accordance with regulations issued 
                        by the Secretary.
                    (D) Exception.--The Secretary shall not issue 
                marketing certificates or cash payments under 
                subparagraph (A) if, for the immediately preceding 
                consecutive 10-week period, the Friday through Thursday 
                average price quotation for the lowest priced United 
                States growth, as quoted for Middling (M) 1\3/32\-inch 
                cotton, delivered C.I.F. Northern Europe, adjusted for 
                the value of any certificate issued under this 
                paragraph, exceeds the Northern Europe price by more 
                than 1.25 cents per pound.
                    (E) Limitation on expenditures.--Total expenditures 
                under this paragraph shall not exceed $701,000,000 
                during fiscal years 1996 through 2002.
            (2) Special import quota.--
                    (A) Establishment.--The President shall carry out 
                an import quota program that provides that, during the 
                period ending July 31, 2003, whenever the Secretary 
                determines and announces that for any consecutive 10-
                week period, the Friday through Thursday average price 
                quotation for the lowest-priced United States growth, 
                as quoted for Middling (M) 1\3/32\-inch cotton, 
                delivered C.I.F. Northern Europe, adjusted for the 
                value of any certificates issued under paragraph (1), 
                exceeds the Northern Europe price by more than 1.25 
                cents per pound, there shall immediately be in effect a 
                special import quota.
                    (B) Quantity.--The quota shall be equal to 1 week's 
                consumption of upland cotton by domestic mills at the 
                seasonally adjusted average rate of the most recent 3 
                months for which data are available.
                    (C) Application.--The quota shall apply to upland 
                cotton purchased not later than 90 days after the date 
                of the Secretary's announcement under subparagraph (A) 
                and entered into the United States not later than 180 
                days after the date.
                    (D) Overlap.--A special quota period may be 
                established that overlaps any existing quota period if 
                required by subparagraph (A), except that a special 
                quota period may not be established under this 
                paragraph if a quota period has been established under 
                subsection (g).
                    (E) Preferential tariff treatment.--The quantity 
                under a special import quota shall be considered to be 
                an in-quota quantity for purposes of--
                            (i) section 213(d) of the Caribbean Basin 
                        Economic Recovery Act (19 U.S.C. 2703(d));
                            (ii) section 204 of the Andean Trade 
                        Preference Act (19 U.S.C. 3203);
                            (iii) section 503(d) of the Trade Act of 
                        1974 (19 U.S.C. 2463(d)); and
                            (iv) General Note 3(a)(iv) to the 
                        Harmonized Tariff Schedule.
                    (F) Definition.--In this paragraph, the term 
                ``special import quota'' means a quantity of imports 
                that is not subject to the over-quota tariff rate of a 
                tariff-rate quota.
    (g) Limited Global Import Quota for Upland Cotton.--
            (1) In general.--The President shall carry out an import 
        quota program that provides that whenever the Secretary 
        determines and announces that the average price of the base 
        quality of upland cotton, as determined by the Secretary, in 
        the designated spot markets for a month exceeded 130 percent of 
        the average price of such quality of cotton in the markets for 
        the preceding 36 months, notwithstanding any other provision of 
        law, there shall immediately be in effect a limited global 
        import quota subject to the following conditions:
                    (A) Quantity.--The quantity of the quota shall be 
                equal to 21 days of domestic mill consumption of upland 
                cotton at the seasonally adjusted average rate of the 
                most recent 3 months for which data are available.
                    (B) Quantity if prior quota.--If a quota has been 
                established under this subsection during the preceding 
                12 months, the quantity of the quota next established 
                under this subsection shall be the smaller of 21 days 
                of domestic mill consumption calculated under 
                subparagraph (A) or the quantity required to increase 
                the supply to 130 percent of the demand.
                    (C) Preferential tariff treatment.--The quantity 
                under a limited global import quota shall be considered 
                to be an in-quota quantity for purposes of--
                            (i) section 213(d) of the Caribbean Basin 
                        Economic Recovery Act (19 U.S.C. 2703(d));
                            (ii) section 204 of the Andean Trade 
                        Preference Act (19 U.S.C. 3203);
                            (iii) section 503(d) of the Trade Act of 
                        1974 (19 U.S.C. 2463(d)); and
                            (iv) General Note 3(a)(iv) to the 
                        Harmonized Tariff Schedule.
                    (D) Definitions.--In this subsection:
                            (i) Supply.--The term ``supply'' means, 
                        using the latest official data of the Bureau of 
                        the Census, the Department of Agriculture, and 
                        the Department of the Treasury--
                                    (I) the carry-over of upland cotton 
                                at the beginning of the marketing year 
                                (adjusted to 480-pound bales) in which 
                                the quota is established;
                                    (II) production of the current 
                                crop; and
                                    (III) imports to the latest date 
                                available during the marketing year.
                            (ii) Demand.--The term ``demand'' means--
                                    (I) the average seasonally adjusted 
                                annual rate of domestic mill 
                                consumption in the most recent 3 months 
                                for which data are available; and
                                    (II) the larger of--
                                            (aa) average exports of 
                                        upland cotton during the 
                                        preceding 6 marketing years; or
                                            (bb) cumulative exports of 
                                        upland cotton plus outstanding 
                                        export sales for the marketing 
                                        year in which the quota is 
                                        established.
                            (iii) Limited global import quota.--The 
                        term ``limited global import quota'' means a 
                        quantity of imports that is not subject to the 
                        over-quota tariff rate of a tariff-rate quota.
                    (E) Quota entry period.--When a quota is 
                established under this subsection, cotton may be 
                entered under the quota during the 90-day period 
                beginning on the date the quota is established by the 
                Secretary.
            (2) No overlap.--Notwithstanding paragraph (1), a quota 
        period may not be established that overlaps an existing quota 
        period or a special quota period established under subsection 
        (f)(2).
    (h) Source of Loans.--
            (1) In general.--The Secretary shall provide the loans 
        authorized by this section through the Commodity Credit 
        Corporation and other means available to the Secretary.
            (2) Processors.--Whenever any loan or surplus removal 
        operation for any agricultural commodity is carried out through 
        purchases from or loans or payments to processors, the 
        Secretary shall, to the extent practicable, obtain from the 
        processors such assurances as the Secretary considers adequate 
        that the producers of the commodity have received or will 
        receive maximum benefits from the loan or surplus removal 
        operation.
    (i) Adjustments of Loans.--
            (1) In general.--The Secretary may make appropriate 
        adjustments in the loan levels for any commodity for 
        differences in grade, type, quality, location, and other 
        factors.
            (2) Loan level.--The adjustments shall, to the maximum 
        extent practicable, be made in such manner that the average 
        loan level for the commodity will, on the basis of the 
        anticipated incidence of the factors, be equal to the level of 
        support determined as provided in this section.
    (j) Personal Liability of Producers for Deficiencies.--
            (1) In general.--Except as provided in paragraph (2), no 
        producer shall be personally liable for any deficiency arising 
        from the sale of the collateral securing any nonrecourse loan 
        made under this section unless the loan was obtained through a 
        fraudulent representation by the producer.
            (2) Limitations.--Paragraph (1) shall not prevent the 
        Commodity Credit Corporation or the Secretary from requiring a 
        producer to assume liability for--
                    (A) a deficiency in the grade, quality, or quantity 
                of a commodity stored on a farm or delivered by the 
                producer;
                    (B) a failure to properly care for and preserve a 
                commodity; or
                    (C) a failure or refusal to deliver a commodity in 
                accordance with a program established under this 
                section.
            (3) Acquisition of collateral.--The Secretary may include 
        in a contract for a nonrecourse loan made under this section a 
        provision that permits the Commodity Credit Corporation, on and 
        after the maturity of the loan or any extension of the loan, to 
        acquire title to the unredeemed collateral without obligation 
        to pay for any market value that the collateral may have in 
        excess of the loan indebtedness.
            (4) Sugarcane and sugar beets.--A security interest 
        obtained by the Commodity Credit Corporation as a result of the 
        execution of a security agreement by the processor of sugarcane 
        or sugar beets shall be superior to all statutory and common 
        law liens on raw cane sugar and refined beet sugar in favor of 
        the producers of sugarcane and sugar beets and all prior 
        recorded and unrecorded liens on the crops of sugarcane and 
        sugar beets from which the sugar was derived.
    (k) Commodity Credit Corporation Sales Price Restrictions.--
            (1) In general.--The Commodity Credit Corporation may sell 
        any commodity owned or controlled by the Corporation at any 
        price that the Secretary determines will maximize returns to 
        the Corporation.
            (2) Nonapplication of sales price restrictions.--Paragraph 
        (1) shall not apply to--
                    (A) a sale for a new or byproduct use;
                    (B) a sale of peanuts or oilseeds for the 
                extraction of oil;
                    (C) a sale for seed or feed if the sale will not 
                substantially impair any loan program;
                    (D) a sale of a commodity that has substantially 
                deteriorated in quality or as to which there is a 
                danger of loss or waste through deterioration or 
                spoilage;
                    (E) a sale for the purpose of establishing a claim 
                arising out of a contract or against a person who has 
                committed fraud, misrepresentation, or other wrongful 
                act with respect to the commodity;
                    (F) a sale for export, as determined by the 
                Corporation; and
                    (G) a sale for other than a primary use.
            (3) Presidential disaster areas.--
                    (A) In general.--Notwithstanding paragraph (1), on 
                such terms and conditions as the Secretary may consider 
                in the public interest, the Corporation may make 
                available any commodity or product owned or controlled 
                by the Corporation for use in relieving distress--
                            (i) in any area in the United States 
                        (including the Virgin Islands) declared by the 
                        President to be an acute distress area because 
                        of unemployment or other economic cause, if the 
                        President finds that the use will not displace 
                        or interfere with normal marketing of 
                        agricultural commodities; and
                            (ii) in connection with any major disaster 
                        determined by the President to warrant 
                        assistance by the Federal Government under the 
                        Robert T. Stafford Disaster Relief and 
                        Emergency Assistance Act (42 U.S.C. 5121 et 
                        seq.).
                    (B) Costs.--Except on a reimbursable basis, the 
                Corporation shall not bear any costs in connection with 
                making a commodity available under subparagraph (A) 
                beyond the cost of the commodity to the Corporation 
                incurred in--
                            (i) the storage of the commodity; and
                            (ii) the handling and transportation costs 
                        in making delivery of the commodity to 
                        designated agencies at 1 or more central 
                        locations in each State or other area.
            (4) Efficient operations.--Paragraph (1) shall not apply to 
        the sale of a commodity the disposition of which is desirable 
        in the interest of the effective and efficient conduct of the 
        operations of the Corporation because of the small quantity of 
        the commodity involved, or because of the age, location, or 
        questionable continued storability of the commodity.

SEC. 105. PAYMENT LIMITATIONS.

    (a) In General.--Section 1001 of the Food Security Act of 1985 (7 
U.S.C. 1308) is amended by striking paragraphs (1) through (4) and 
inserting the following:
            ``(1) Limitation on payments under production flexibility 
        contracts.--The total amount of contract payments made under 
        section 103 of the Agricultural Market Transition Act to a 
        person under 1 or more production flexibility contracts during 
        any fiscal year may not exceed $40,000.
            ``(2) Limitation on marketing loan gains and loan 
        deficiency payments.--
                    ``(A) Limitation.--The total amount of payments 
                specified in subparagraph (B) that a person shall be 
                entitled to receive under section 104 of the 
                Agricultural Market Transition Act for contract 
                commodities and oilseeds during any crop year may not 
                exceed $75,000.
                    ``(B) Description of payments.--The payments 
                referred to in subparagraph (A) are the following:
                            ``(i) Any gain realized by a producer from 
                        repaying a marketing assistance loan for a crop 
                        of any loan commodity at a lower level than the 
                        original loan rate established for the 
                        commodity under section 104(b) of the Act.
                            ``(ii) Any loan deficiency payment received 
                        for a loan commodity under section 104(e) of 
                        the Act.''.
    (b) Conforming Amendments.--
            (1) Section 1001 of the Food Security Act of 1985 (7 U.S.C. 
        1308) (as amended by subsection (a)) is amended--
                    (A) by redesignating paragraphs (5), (6), and (7) 
                as paragraphs (3), (4), and (5), respectively; and
                    (B) in the second sentence of paragraph (3)(A) (as 
                so redesignated), by striking ``paragraphs (6) and 
                (7)'' and inserting ``paragraphs (4) and (5)''.
            (2) Section 1305(d) of the Agricultural Reconciliation Act 
        of 1987 (Public Law 100-203; 7 U.S.C. 1308 note) is amended by 
        striking ``paragraphs (5) through (7) of section 1001, as 
        amended by this subtitle,'' and inserting ``paragraphs (3) 
        through (5) of section 1001,''.
            (3) Section 1001A of the Food Security Act of 1985 (7 
        U.S.C. 1308-1(a)(1)) is amended--
                    (A) in the first sentence of subsection (a)(1)--
                            (i) by striking ``section 1001(5)(B)(i)'' 
                        and inserting ``section 1001(3)(B)(i)'';
                            (ii) by striking ``under the Agricultural 
                        Act of 1949 (7 U.S.C. 1421 et seq.)''; and
                            (iii) by striking ``section 
                        1001(5)(B)(i)(II)'' and inserting ``section 
                        1001(3)(B)(i)(II)''; and
                    (B) in subsection (b)--
                            (i) in paragraph (1)--
                                    (I) by striking ``under the 
                                Agricultural Act of 1949''; and
                                    (II) by striking ``section 
                                1001(5)(B)(i)'' and inserting ``section 
                                1001(3)(B)(i)''; and
                            (ii) in paragraph (2)(B), by striking 
                        ``section 1001(5)(B)(i)(II)'' and inserting 
                        ``section 1001(3)(B)(i)(II)''.
            (4) Section 1001C(a) of the Food Security Act of 1985 (7 
        U.S.C. 1308-3(a)) is amended--
                    (A) by striking ``For each of the 1991 through 1997 
                crops, any'' and inserting ``Any'';
                    (B) by striking ``price support program loans, 
                payments, or benefits made available under the 
                Agricultural Act of 1949 (7 U.S.C. 1421 et seq.),'' and 
                inserting ``loans or payments made available under the 
                Agricultural Market Transition Act''; and
                    (C) by striking ``during the 1989 through 1997 crop 
                years''.

SEC. 106. PEANUT PROGRAM.

    (a) Quota Peanuts.--
            (1) Availability of loans.--The Secretary shall make 
        nonrecourse loans available to producers of quota peanuts.
            (2) Loan rate.--The national average quota loan rate for 
        quota peanuts shall be $610 per ton.
            (3) Inspection, handling, or storage.--The loan amount may 
        not be reduced by the Secretary by any deductions for 
        inspection, handling, or storage.
            (4) Location and other factors.--The Secretary may make 
        adjustments in the loan rate for quota peanuts for location of 
        peanuts and such other factors as are authorized by section 
        104(i)(1).
    (b) Additional Peanuts.--
            (1) In general.--The Secretary shall make nonrecourse loans 
        available to producers of additional peanuts at such rates as 
        the Secretary finds appropriate, taking into consideration the 
        demand for peanut oil and peanut meal, expected prices of other 
        vegetable oils and protein meals, and the demand for peanuts in 
        foreign markets.
            (2) Announcement.--The Secretary shall announce the loan 
        rate for additional peanuts of each crop not later than 
        February 15 preceding the marketing year for the crop for which 
        the loan rate is being determined.
    (c) Area Marketing Associations.--
            (1) Warehouse storage loans.--
                    (A) In general.--In carrying out subsections (a) 
                and (b), the Secretary shall make warehouse storage 
                loans available in each of the producing areas 
                (described in section 1446.95 of title 7 of the Code of 
                Federal Regulations (January 1, 1989)) to a designated 
                area marketing association of peanut producers that is 
                selected and approved by the Secretary and that is 
                operated primarily for the purpose of conducting the 
                loan activities. The Secretary may not make warehouse 
                storage loans available to any cooperative that is 
                engaged in operations or activities concerning peanuts 
                other than those operations and activities specified in 
                this section and section 358e of the Agricultural 
                Adjustment Act of 1938 (7 U.S.C. 1359a).
                    (B) Administrative and supervisory activities.--An 
                area marketing association shall be used in 
                administrative and supervisory activities relating to 
                loans and marketing activities under this section and 
                section 358e of the Agricultural Adjustment Act of 1938 
                (7 U.S.C. 1359a).
                    (C) Association costs.--Loans made to the 
                association under this paragraph shall include such 
                costs as the area marketing association reasonably may 
                incur in carrying out the responsibilities, operations, 
                and activities of the association under this section 
                and section 358e of the Agricultural Adjustment Act of 
                1938 (7 U.S.C. 1359a).
            (2) Pools for quota and additional peanuts.--
                    (A) In general.--The Secretary shall require that 
                each area marketing association establish pools and 
                maintain complete and accurate records by area and 
                segregation for quota peanuts handled under loan and 
                for additional peanuts placed under loan, except that 
                separate pools shall be established for Valencia 
                peanuts produced in New Mexico.
                    (B) Eligibility to participate.--
                            (i) In general.--Except as provided in 
                        clause (ii), in the case of the 1996 and 
                        subsequent crops, Valencia peanuts not 
                        physically produced in the State of New Mexico 
                        shall not be eligible to participate in the 
                        pools of the State.
                            (ii) Exception.--A resident of the State of 
                        New Mexico may enter Valencia peanuts that are 
                        produced outside of the State into the pools of 
                        the State in a quantity that is not greater 
                        than the 1995 crop of the resident that was 
                        produced outside the State.
                    (C) Types of peantus.--Bright hull and dark hull 
                Valencia peanuts shall be considered as separate types 
                for the purpose of establishing the pools.
                    (D) Net gains.--Net gains on peanuts in each pool, 
                unless otherwise approved by the Secretary, shall be 
                distributed only to producers who placed peanuts in the 
                pool and shall be distributed in proportion to the 
                value of the peanuts placed in the pool by each 
                producer. Net gains for peanuts in each pool shall 
                consist of the following:
                            (i) Quota peanuts.--For quota peanuts, the 
                        net gains over and above the loan indebtedness 
                        and other costs or losses incurred on peanuts 
                        placed in the pool.
                            (ii) Additional peanuts.--For additional 
                        peanuts, the net gains over and above the loan 
                        indebtedness and other costs or losses incurred 
                        on peanuts placed in the pool for additional 
                        peanuts.
    (d) Losses.--Losses in quota area pools shall be covered using the 
following sources in the following order of priority:
            (1) Transfers from additional loan pools.--The proceeds due 
        any producer from any pool shall be reduced by the amount of 
        any loss that is incurred with respect to peanuts transferred 
        from an additional loan pool to a quota loan pool by the 
        producer under section 358-1(b)(8) of the Agricultural 
        Adjustment Act of 1938 (7 U.S.C. 1358-1(b)(8)).
            (2) Other producers in same pool.--Further losses in an 
        area quota pool shall be offset by reducing the gain of any 
        producer in the pool by the amount of pool gains attributed to 
        the same producer from the sale of additional peanuts for 
        domestic and export edible use.
            (3) Offset within area.--Further losses in an area quota 
        pool shall be offset by any gains or profits from additional 
        peanuts (other than separate type pools established under 
        subsection (c)(2)(A) for Valencia peanuts produced in New 
        Mexico) owned or controlled by the Commodity Credit Corporation 
        in that area and sold for domestic edible use, in accordance 
        with regulations issued by the Secretary.
            (4) Use of marketing assessments.--The Secretary shall use 
        funds collected under subsection (g) (except funds attributable 
        to handlers) to offset further losses in area quota pools. The 
        Secretary shall transfer to the Treasury those funds collected 
        under subsection (g) and available for use under this 
        subsection that the Secretary determines are not required to 
        cover losses in area quota pools.
            (5) Cross compliance.--Further losses in area quota pools, 
        other than losses incurred as a result of transfers from 
        additional loan pools to quota loan pools under section 358-
        1(b)(8) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 
        1358-1(b)(8)), shall be offset by any gains or profits from 
        quota pools in other production areas (other than separate type 
        pools established under subsection (c)(2)(A) for Valencia 
        peanuts produced in New Mexico) in such manner as the Secretary 
        shall by regulation prescribe.
            (6) Offset generally.--If losses in an area quota pool have 
        not been entirely offset under paragraph (3), further losses 
        shall be offset by any gains or profits from additional peanuts 
        (other than separate type pools established under subsection 
        (c)(2)(A) for Valencia peanuts produced in New Mexico) owned or 
        controlled by the Commodity Credit Corporation and sold for 
        domestic edible use, in accordance with regulations issued by 
        the Secretary.
            (7) Increased assessments.--If use of the authorities 
        provided in the preceding paragraphs is not sufficient to cover 
        losses in an area quota pool, the Secretary shall increase the 
        marketing assessment established under subsection (g) by such 
        an amount as the Secretary considers necessary to cover the 
        losses. The increased assessment shall apply only to quota 
        peanuts in the production area covered by the pool. Amounts 
        collected under subsection (g) as a result of the increased 
        assessment shall be retained by the Secretary to cover losses 
        in that pool.
    (e) Disapproval of Quotas.--Notwithstanding any other provision of 
law, no loan for quota peanuts may be made available by the Secretary 
for any crop of peanuts with respect to which poundage quotas have been 
disapproved by producers, as provided for in section 358-1(d) of the 
Agricultural Adjustment Act of 1938 (7 U.S.C. 1358-1(d)).
    (f) Quality Improvement.--
            (1) In general.--With respect to peanuts under loan, the 
        Secretary shall--
                    (A) promote the crushing of peanuts at a greater 
                risk of deterioration before peanuts of a lesser risk 
                of deterioration;
                    (B) ensure that all Commodity Credit Corporation 
                inventories of peanuts sold for domestic edible use 
                must be shown to have been officially inspected by 
                licensed Department inspectors both as farmer stock and 
                shelled or cleaned in-shell peanuts;
                    (C) continue to endeavor to operate the peanut 
                program so as to improve the quality of domestic 
                peanuts and ensure the coordination of activities under 
                the Peanut Administrative Committee established under 
                Marketing Agreement No. 146, regulating the quality of 
                domestically produced peanuts (under the Agricultural 
                Adjustment Act (7 U.S.C. 601 et seq.), reenacted with 
                amendments by the Agricultural Marketing Agreement Act 
                of 1937); and
                    (D) ensure that any changes made in the peanut 
                program as a result of this subsection requiring 
                additional production or handling at the farm level 
                shall be reflected as an upward adjustment in the 
                Department loan schedule.
            (2) Exports and other peanuts.--The Secretary shall require 
        that all peanuts in the domestic and export markets fully 
        comply with all quality standards under Marketing Agreement No. 
        146.
    (g) Marketing Assessment.--
            (1) In general.--The Secretary shall provide for a 
        nonrefundable marketing assessment. The assessment shall be 
        made on a per pound basis in an amount equal to 1.1 percent for 
        each of the 1994 and 1995 crops, 1.15 percent for the 1996 
        crop, and 1.2 percent for each of the 1997 through 2002 crops, 
        of the national average quota or additional peanut loan rate 
        for the applicable crop.
            (2) First purchasers.--
                    (A) In general.--Except as provided under 
                paragraphs (3) and (4), the first purchaser of peanuts 
                shall--
                            (i) collect from the producer a marketing 
                        assessment equal to the quantity of peanuts 
                        acquired multiplied by--
                                    (I) in the case of each of the 1994 
                                and 1995 crops, .55 percent of the 
                                applicable national average loan rate;
                                    (II) in the case of the 1996 crop, 
                                .6 percent of the applicable national 
                                average loan rate; and
                                    (III) in the case of each of the 
                                1997 through 2002 crops, .65 percent of 
                                the applicable national average loan 
                                rate;
                            (ii) pay, in addition to the amount 
                        collected under clause (i), a marketing 
                        assessment in an amount equal to the quantity 
                        of peanuts acquired multiplied by .55 percent 
                        of the applicable national average loan rate; 
                        and
                            (iii) remit the amounts required under 
                        clauses (i) and (ii) to the Commodity Credit 
                        Corporation in a manner specified by the 
                        Secretary.
                    (B) Definition of first purchaser.--In this 
                subsection, the term ``first purchaser'' means a person 
                acquiring peanuts from a producer except that in the 
                case of peanuts forfeited by a producer to the 
                Commodity Credit Corporation, the term means the person 
                acquiring the peanuts from the Commodity Credit 
                Corporation.
            (3) Other private marketings.--In the case of a private 
        marketing by a producer directly to a consumer through a retail 
        or wholesale outlet or in the case of a marketing by the 
        producer outside of the continental United States, the producer 
        shall be responsible for the full amount of the assessment and 
        shall remit the assessment by such time as is specified by the 
        Secretary.
            (4) Loan peanuts.--In the case of peanuts that are pledged 
        as collateral for a loan made under this section, \1/2\ of the 
        assessment shall be deducted from the proceeds of the loan. The 
        remainder of the assessment shall be paid by the first 
        purchaser of the peanuts. For purposes of computing net gains 
        on peanuts under this section, the reduction in loan proceeds 
        shall be treated as having been paid to the producer.
            (5) Penalties.--If any person fails to collect or remit the 
        reduction required by this subsection or fails to comply with 
        the requirements for recordkeeping or otherwise as are required 
        by the Secretary to carry out this subsection, the person shall 
        be liable to the Secretary for a civil penalty up to an amount 
        determined by multiplying--
                    (A) the quantity of peanuts involved in the 
                violation; by
                    (B) the national average quota peanut rate for the 
                applicable crop year.
            (6) Enforcement.--The Secretary may enforce this subsection 
        in the courts of the United States.
    (h) Crops.--Subsections (a) through (f) shall be effective only for 
the 1996 through 2002 crops of peanuts.
    (i) Marketing Quotas.--
            (1) In general.--Part VI of subtitle B of title III of the 
        Agricultural Adjustment Act of 1938 is amended--
                    (A) in section 358-1 (7 U.S.C. 1358-1)--
                            (i) in the section heading, by striking 
                        ``1991 through 1997 crops of'';
                            (ii) in subsections (a)(1), (b)(1)(B), 
                        (b)(2)(A), (b)(2)(C), and (b)(3)(A), by 
                        striking ``of the 1991 through 1997 marketing 
                        years'' each place it appears and inserting 
                        ``marketing year'';
                            (iii) in subsection (a)(3), by striking 
                        ``1990'' and inserting ``1990, for the 1991 
                        through 1995 marketing years, and 1995, for the 
                        1996 through 2002 marketing years'';
                            (iv) in subsection (b)(1)(A)--
                                    (I) by striking ``each of the 1991 
                                through 1997 marketing years'' and 
                                inserting ``each marketing year''; and
                                    (II) in clause (i), by inserting 
                                before the semicolon the following: ``, 
                                in the case of the 1991 through 1995 
                                marketing years, and the 1995 marketing 
                                year, in the case of the 1996 through 
                                2002 marketing years'';
                            (v) in subsection (b)(1), by adding at the 
                        end the following:
                    ``(D) Certain farms ineligible for quota.--
                Effective beginning with the 1997 marketing year, the 
                Secretary shall not establish a farm poundage quota 
                under subparagraph (A) for a farm owned or controlled 
                by--
                            ``(i) a municipality, airport authority, 
                        school, college, refuge, or other public entity 
                        (other than a university used for research 
                        purposes); or
                            ``(ii) a person who is not a producer and 
                        resides in another State.'';
                            (vi) in subsection (b)(2), by adding at the 
                        end the following:
                    ``(E) Transfer of quota from ineligible farms.--Any 
                farm poundage quota held at the end of the 1996 
                marketing year by a farm described in paragraph (1)(D) 
                shall be allocated to other farms in the same State on 
                such basis as the Secretary may by regulation 
                prescribe.''; and
                            (vii) in subsection (f), by striking 
                        ``1997'' and inserting ``2002'';
                    (B) in section 358b (7 U.S.C. 1358b)--
                            (i) in the section heading, by striking 
                        ``1991 through 1995 crops of''; and
                            (ii) in subsection (c), by striking 
                        ``1995'' and inserting ``2002'';
                    (C) in section 358c(d) (7 U.S.C. 1358c(d)), by 
                striking ``1995'' and inserting ``2002''; and
                    (D) in section 358e (7 U.S.C. 1359a)--
                            (i) in the section heading, by striking 
                        ``for 1991 through 1997 crops of peanuts''; and
                            (ii) in subsection (i), by striking 
                        ``1997'' and inserting ``2002''.
            (2) Elimination of quota floor.--Section 358-1(a)(1) of the 
        Act (7 U.S.C. 1358-1(a)(1)) is amended by striking the second 
        sentence.
            (3) Temporary quota allocation.--Section 358-1 of the Act 
        (7 U.S.C. 1358-1) is amended--
                    (A) in subsection (a)(1), by striking ``domestic 
                edible, seed,'' and inserting ``domestic edible use'';
                    (B) in subsection (b)(2)--
                            (i) in subparagraph (A), by striking 
                        ``subparagraph (B) and subject to''; and
                            (ii) by striking subparagraph (B) and 
                        inserting the following:
                    ``(B) Temporary quota allocation.--
                            ``(i) Allocation related to seed peanuts.--
                        Temporary allocation of quota pounds for the 
                        marketing year only in which the crop is 
                        planted shall be made to producers for each of 
                        the 1996 through 2002 marketing years as 
                        provided in this subparagraph.
                            ``(ii) Quantity.--The temporary quota 
                        allocation shall be equal to the pounds of seed 
                        peanuts planted on the farm, as may be adjusted 
                        under regulations prescribed by the Secretary.
                            ``(iii) Additional quota.--The temporary 
                        allocation of quota pounds under this paragraph 
                        shall be in addition to the farm poundage quota 
                        otherwise established under this subsection and 
                        shall be credited, for the applicable marketing 
                        year only, in total to the producer of the 
                        peanuts on the farm in a manner prescribed by 
                        the Secretary.
                            ``(iv) Effect of other requirements.--
                        Nothing in this section alters or changes the 
                        requirements regarding the use of quota and 
                        additional peanuts established by section 
                        358e(b).''; and
                    (C) in subsection (e)(3), strike ``and seed and use 
                on a farm''.
            (4) Undermarketings.--Part VI of subtitle B of title III of 
        the Act is amended--
                    (A) in section 358-1(b) (7 U.S.C. 1358-1(b))--
                            (i) in paragraph (1)(B), by striking 
                        ``including--'' and clauses (i) and (ii) and 
                        inserting ``including any increases resulting 
                        from the allocation of quotas voluntarily 
                        released for 1 year under paragraph (7).'';
                            (ii) in paragraph (3)(B), by striking 
                        ``include--'' and clauses (i) and (ii) and 
                        inserting ``include any increase resulting from 
                        the allocation of quotas voluntarily released 
                        for 1 year under paragraph (7).''; and
                            (iii) by striking paragraphs (8) and (9); 
                        and
                    (B) in section 358b(a) (7 U.S.C. 1358b(a))--
                            (i) in paragraph (1), by striking 
                        ``(including any applicable under marketings)'' 
                        both places it appears;
                            (ii) in paragraph (1)(A), by striking ``of 
                        undermarketings and'';
                            (iii) in paragraph (2), by striking 
                        ``(including any applicable under 
                        marketings)''; and
                            (iv) in paragraph (3), by striking 
                        ``(including any applicable undermarketings)''.
            (5) Disaster transfers.--Section 358-1(b) of the Act (7 
        U.S.C. 1358-1(b)), as amended by paragraph (4)(A)(iii), is 
        further amended by adding at the end the following:
            ``(8) Disaster transfers.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), additional peanuts produced on a farm 
                from which the quota poundage was not harvested and 
                marketed because of drought, flood, or any other 
                natural disaster, or any other condition beyond the 
                control of the producer, may be transferred to the 
                quota loan pool for pricing purposes on such basis as 
                the Secretary shall by regulation provide.
                    ``(B) Limitation.--The poundage of peanuts 
                transferred under subparagraph (A) shall not exceed the 
                difference between--
                            ``(i) the total quantity of peanuts meeting 
                        quality requirements for domestic edible use, 
                        as determined by the Secretary, marketed from 
                        the farm; and
                            ``(ii) the total farm poundage quota, 
                        excluding quota pounds transferred to the farm 
                        in the fall.
                    ``(C) Support rate.--Peanuts transferred under this 
                paragraph shall be supported at not more than 70 
                percent of the quota support rate for the marketing 
                years in which the transfers occur. The transfers for a 
                farm shall not exceed 25 percent of the total farm 
                quota pounds, excluding pounds transferred in the 
                fall.''.

SEC. 107. SUGAR PROGRAM.

    (a) Sugarcane.--The Secretary shall make loans available to 
processors of domestically grown sugarcane at a rate equal to 18 cents 
per pound for raw cane sugar.
    (b) Sugar Beets.--The Secretary shall make loans available to 
processors of domestically grown sugar beets at a rate equal to 22.9 
cents per pound for refined beet sugar.
    (c) Term of Loans.--
            (1) In general.--Loans under this section during any fiscal 
        year shall be made available not earlier than the beginning of 
        the fiscal year and shall mature at the earlier of--
                    (A) the end of 9 months; or
                    (B) the end of the fiscal year.
            (2) Supplemental loans.--In the case of loans made under 
        this section in the last 3 months of a fiscal year, the 
        processor may repledge the sugar as collateral for a second 
        loan in the subsequent fiscal year, except that the second loan 
        shall--
                    (A) be made at the loan rate in effect at the time 
                the second loan is made; and
                    (B) mature in 9 months less the quantity of time 
                that the first loan was in effect.
    (d) Loan Type; Processor Assurances.--
            (1) Recourse loans.--Subject to paragraph (2), the 
        Secretary shall carry out this section through the use of 
        recourse loans.
            (2) Nonrecourse loans.--During any fiscal year in which the 
        tariff rate quota for imports of sugar into the United States 
        is established at, or is increased to, a level in excess of 
        1,500,000 short tons raw value, the Secretary shall carry out 
        this section by making available nonrecourse loans. Any 
        recourse loan previously made available by the Secretary under 
        this section during the fiscal year shall be changed by the 
        Secretary into a nonrecourse loan.
            (3) Processor assurances.--If the Secretary is required 
        under paragraph (2) to make nonrecourse loans available during 
        a fiscal year or to change recourse loans into nonrecourse 
        loans, the Secretary shall obtain from each processor that 
        receives a loan under this section such assurances as the 
        Secretary considers adequate to ensure that the processor will 
        provide payments to producers that are proportional to the 
        value of the loan received by the processor for sugar beets and 
        sugarcane delivered by producers served by the processor. The 
        Secretary may establish appropriate minimum payments for 
        purposes of this paragraph.
    (e) Marketing Assessment.--
            (1) Sugarcane.--Effective for marketings of raw cane sugar 
        during the 1996 through 2003 fiscal years, the first processor 
        of sugarcane shall remit to the Commodity Credit Corporation a 
        nonrefundable marketing assessment in an amount equal to--
                    (A) in the case of marketings during fiscal year 
                1996, 1.1 percent of the loan rate established under 
                subsection (a) per pound of raw cane sugar, processed 
                by the processor from domestically produced sugarcane 
                or sugarcane molasses, that has been marketed 
                (including the transfer or delivery of the sugar to a 
                refinery for further processing or marketing); and
                    (B) in the case of marketings during each of fiscal 
                years 1997 through 2003, 1.375 percent of the loan rate 
                established under subsection (a) per pound of raw cane 
                sugar, processed by the processor from domestically 
                produced sugarcane or sugarcane molasses, that has been 
                marketed (including the transfer or delivery of the 
                sugar to a refinery for further processing or 
                marketing).
            (2) Sugar beets.--Effective for marketings of beet sugar 
        during the 1996 through 2003 fiscal years, the first processor 
        of sugar beets shall remit to the Commodity Credit Corporation 
        a nonrefundable marketing assessment in an amount equal to--
                    (A) in the case of marketings during fiscal year 
                1996, 1.1794 percent of the loan rate established under 
                subsection (a) per pound of beet sugar, processed by 
                the processor from domestically produced sugar beets or 
                sugar beet molasses, that has been marketed; and
                    (B) in the case of marketings during each of fiscal 
                years 1997 through 2003, 1.47425 percent of the loan 
                rate established under subsection (a) per pound of beet 
                sugar, processed by the processor from domestically 
                produced sugar beets or sugar beet molasses, that has 
                been marketed.
            (3) Collection.--
                    (A) Timing.--A marketing assessment required under 
                this subsection shall be collected on a monthly basis 
                and shall be remitted to the Commodity Credit 
                Corporation not later than 30 days after the end of 
                each month. Any cane sugar or beet sugar processed 
                during a fiscal year that has not been marketed by 
                September 30 of the year shall be subject to assessment 
                on that date. The sugar shall not be subject to a 
                second assessment at the time that it is marketed.
                    (B) Manner.--Subject to subparagraph (A), marketing 
                assessments shall be collected under this subsection in 
                the manner prescribed by the Secretary and shall be 
                nonrefundable.
            (4) Penalties.--If any person fails to remit the assessment 
        required by this subsection or fails to comply with such 
        requirements for recordkeeping or otherwise as are required by 
        the Secretary to carry out this subsection, the person shall be 
        liable to the Secretary for a civil penalty up to an amount 
        determined by multiplying--
                    (A) the quantity of cane sugar or beet sugar 
                involved in the violation; by
                    (B) the loan rate for the applicable crop of 
                sugarcane or sugar beets.
            (5) Enforcement.--The Secretary may enforce this subsection 
        in a court of the United States.
    (f) Forfeiture Penalty.--
            (1) In general.--A penalty shall be assessed on the 
        forfeiture of any sugar pledged as collateral for a nonrecourse 
        loan under this section.
            (2) Cane sugar.--The penalty for cane sugar shall be 1 cent 
        per pound.
            (3) Beet sugar.--The penalty for beet sugar shall bear the 
        same relation to the penalty for cane sugar as the marketing 
        assessment for sugar beets bears to the marketing assessment 
        for sugarcane.
            (4) Effect of forfeiture.--Any payments owed producers by a 
        processor that forfeits of any sugar pledged as collateral for 
        a nonrecourse loan shall be reduced in proportion to the loan 
        forfeiture penalty incurred by the processor.
    (g) Information Reporting.--
            (1) Duty of processors and refiners to report.--A sugarcane 
        processor, cane sugar refiner, and sugar beet processor shall 
        furnish the Secretary, on a monthly basis, such information as 
        the Secretary may require to administer sugar programs, 
        including the quantity of purchases of sugarcane, sugar beets, 
        and sugar, and production, importation, distribution, and stock 
        levels of sugar.
            (2) Penalty.--Any person willfully failing or refusing to 
        furnish the information, or furnishing willfully any false 
        information, shall be subject to a civil penalty of not more 
        than $10,000 for each such violation.
            (3) Monthly reports.--Taking into consideration the 
        information received under paragraph (1), the Secretary shall 
        publish on a monthly basis composite data on production, 
        imports, distribution, and stock levels of sugar.
    (h) Crops.--This section shall be effective only for the 1996 
through 2002 crops of sugar beets and sugarcane.

SEC. 108. ADMINISTRATION.

    (a) Commodity Credit Corporation.--
            (1) Use of corporation.--The Secretary shall carry out this 
        title through the Commodity Credit Corporation.
            (2) Salaries and expenses.--No funds of the Corporation 
        shall be used for any salary or expense of any officer or 
        employee of the Department of Agriculture.
    (b) Determinations by Secretary.--A determination made by the 
Secretary under this title or the Agricultural Adjustment Act of 1938 
(7 U.S.C. 1281 et seq.) shall be final and conclusive.
    (c) Regulations.--The Secretary may issue such regulations as the 
Secretary determines necessary to carry out this title.

SEC. 109. SUSPENSION AND REPEAL OF PERMANENT AUTHORITIES.

    (a) Agricultural Adjustment Act of 1938.--
            (1) In general.--The following provisions of the 
        Agricultural Adjustment Act of 1938 shall not be applicable to 
        the 1996 through 2002 crops:
                    (A) Parts II through V of subtitle B of title III 
                (7 U.S.C. 1326-1351).
                    (B) Subsections (a) through (j) of section 358 (7 
                U.S.C. 1358).
                    (C) Subsections (a) through (h) of section 358a (7 
                U.S.C. 1358a).
                    (D) Subsections (a), (b), (d), and (e) of section 
                358d (7 U.S.C. 1359).
                    (E) Part VII of subtitle B of title III (7 U.S.C. 
                1359aa-1359jj).
                    (F) In the case of peanuts, part I of subtitle C of 
                title III (7 U.S.C. 1361-1368).
                    (G) In the case of upland cotton, section 377 (7 
                U.S.C. 1377).
                    (H) Subtitle D of title III (7 U.S.C. 1379a-1379j).
                    (I) Title IV (7 U.S.C. 1401-1407).
            (2) Reports and records.--Effective only for the 1996 
        through 2002 crops of peanuts, the first sentence of section 
        373(a) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 
        1373(a)) is amended by inserting before ``all brokers and 
        dealers in peanuts'' the following: ``all producers engaged in 
        the production of peanuts,''.
    (b) Agricultural Act of 1949.--
            (1) Suspensions.--The following provisions of the 
        Agricultural Act of 1949 shall not be applicable to the 1996 
        through 2002 crops:
                    (A) Section 101 (7 U.S.C. 1441).
                    (B) Section 103(a) (7 U.S.C. 1444(a)).
                    (C) Section 105 (7 U.S.C. 1444b).
                    (D) Section 107 (7 U.S.C. 1445a).
                    (E) Section 110 (7 U.S.C. 1445e).
                    (F) Section 112 (7 U.S.C. 1445g).
                    (G) Section 115 (7 U.S.C. 1445k).
                    (H) Title III (7 U.S.C. 1447-1449).
                    (I) Title IV (7 U.S.C. 1421-1433d), other than 
                sections 404, 406, 412, 416, and 427 (7 U.S.C. 1424, 
                1426, 1429, 1431, and 1433f).
                    (J) Title V (7 U.S.C. 1461-1469).
                    (K) Title VI (7 U.S.C. 1471-1471j).
            (2) Repeals.--The following provisions of the Agricultural 
        Act of 1949 are repealed:
                    (A) Section 103B (7 U.S.C. 1444-2).
                    (B) Section 108B (7 U.S.C. 1445c-3).
                    (C) Section 113 (7 U.S.C. 1445h).
                    (D) Section 114(b) (7 U.S.C. 1445j(b)).
                    (E) Sections 205, 206, and 207 (7 U.S.C. 1446f, 
                1446g, and 1446h).
                    (F) Section 406 (7 U.S.C. 1426).
    (c) Suspension of Certain Quota Provisions.--The joint resolution 
entitled ``A joint resolution relating to corn and wheat marketing 
quotas under the Agricultural Adjustment Act of 1938, as amended'', 
approved May 26, 1941 (7 U.S.C. 1330 and 1340), shall not be applicable 
to the crops of wheat planted for harvest in the calendar years 1996 
through 2002.

SEC. 110. EFFECT OF AMENDMENTS.

    (a) Effect on Prior Crops.--Except as otherwise specifically 
provided and notwithstanding any other provision of law, this title and 
the amendments made by this title shall not affect the authority of the 
Secretary to carry out a price support or production adjustment program 
for any of the 1991 through 1995 crops of an agricultural commodity 
established under a provision of law in effect immediately before the 
date of the enactment of this Act.
    (b) Liability.--A provision of this title or an amendment made by 
this title shall not affect the liability of any person under any 
provision of law as in effect before the date of the enactment of this 
Act.

                      TITLE II--AGRICULTURAL TRADE

Subtitle A--Amendments to Agricultural Trade Development and Assistance 
                    Act of 1954 and Related Statutes

SEC. 201. FOOD AID TO DEVELOPING COUNTRIES.

    (a) In General.--Section 3 of the Agricultural Trade Development 
and Assistance Act of 1954 (7 U.S.C. 1691a) is amended to read as 
follows:

``SEC. 3. FOOD AID TO DEVELOPING COUNTRIES.

    ``(a) Policy.--In light of the Uruguay Round Agreement on 
Agriculture and the Ministerial Decision on Measures Concerning the 
Possible Negative Effects of the Reform Program on Least-Developed and 
Net-Food Importing Developing Countries, the United States reaffirms 
the commitment of the United States to providing food aid to developing 
countries.
    ``(b) Sense of congress.--It is the sense of Congress that--
            ``(1) the President should initiate consultations with 
        other donor nations to consider appropriate levels of food aid 
        commitments to meet the legitimate needs of developing 
        countries; and
            ``(2) the United States should increase its contribution of 
        bona fide food assistance to developing countries consistent 
        with the Agreement on Agriculture.''.
    (b) Conforming Amendment.--Section 411 of the Uruguay Round 
Agreements Act (19 U.S.C. 3611) is amended by striking subsection (e).

SEC. 202. TRADE AND DEVELOPMENT ASSISTANCE.

    Section 101 of the Agricultural Trade Development and Assistance 
Act of 1954 (7 U.S.C. 1701) is amended--
            (1) by striking ``developing countries'' each place it 
        appears and inserting ``developing countries and private 
        entities''; and
            (2) in subsection (b), by inserting ``and entities'' before 
        the period at the end.

SEC. 203. AGREEMENTS REGARDING ELIGIBLE COUNTRIES AND PRIVATE ENTITIES.

    Section 102 of the Agricultural Trade Development and Assistance 
Act of 1954 (7 U.S.C. 1702) is amended to read as follows:

``SEC. 102. AGREEMENTS REGARDING ELIGIBLE COUNTRIES AND PRIVATE 
              ENTITIES.

    ``(a) Priority.--In selecting agreements to be entered into under 
this title, the Secretary shall give priority to agreements providing 
for the export of agricultural commodities to developing countries 
that--
            ``(1) have the demonstrated potential to become commercial 
        markets for competitively priced United States agricultural 
        commodities;
            ``(2) are undertaking measures for economic development 
        purposes to improve food security and agricultural development, 
        alleviate poverty, and promote broad-based equitable and 
        sustainable development; and
            ``(3) demonstrate the greatest need for food.
    ``(b) Private Entities.--An agreement entered into under this title 
with a private entity shall require such security, or such other 
provisions as the Secretary determines necessary, to provide reasonable 
and adequate assurance of repayment of the financing extended to the 
private entity.
    ``(c) Agricultural Market Development Plan.--
            ``(1) Definition of agricultural trade organization.--In 
        this subsection, the term `agricultural trade organization' 
        means a United States agricultural trade organization that 
        promotes the export and sale of a United States agricultural 
        commodity and that does not stand to profit directly from the 
        specific sale of the commodity.
            ``(2) Plan.--The Secretary shall consider a developing 
        country for which an agricultural market development plan has 
        been approved under this subsection to have the demonstrated 
        potential to become a commercial market for competitively 
        priced United States agricultural commodities for the purpose 
        of granting a priority under subsection (a).
            ``(3) Requirements.--
                    ``(A) In general.--To be approved by the Secretary, 
                an agricultural market development plan shall--
                            ``(i) be submitted by a developing country 
                        or private entity, in conjunction with an 
                        agricultural trade organization;
                            ``(ii) describe a project or program for 
                        the development and expansion of a United 
                        States agricultural commodity market in a 
                        developing country, and the economic 
                        development of the country, using funds derived 
                        from the sale of agricultural commodities 
                        received under an agreement described in 
                        section 101;
                            ``(iii) provide for any matching funds that 
                        are required by the Secretary for the project 
                        or program;
                            ``(iv) provide for a results-oriented means 
                        of measuring the success of the project or 
                        program; and
                            ``(v) provide for graduation to the use of 
                        non-Federal funds to carry out the project or 
                        program, consistent with requirements 
                        established by the Secretary.
                    ``(B) Agricultural trade organization.--The project 
                or program shall be designed and carried out by the 
                agricultural trade organization.
                    ``(C) Additional requirements.--An agricultural 
                market development plan shall contain such additional 
                requirements as are determined necessary by the 
                Secretary.
            ``(4) Administrative costs.--
                    ``(A) In general.--The Secretary shall make funds 
                made available to carry out this title available for 
                the reimbursement of administrative expenses incurred 
                by agricultural trade organizations in developing, 
                implementing, and administering agricultural market 
                development plans, subject to such requirements and in 
                such amounts as the Secretary considers appropriate.
                    ``(B) Duration.--The funds shall be made available 
                to agricultural trade organizations for the duration of 
                the applicable agricultural market development plan.
                    ``(C) Termination.--The Secretary may terminate 
                assistance made available under this subsection if the 
                agricultural trade organization is not carrying out the 
                approved agricultural market development plan.''.

SEC. 204. TERMS AND CONDITIONS OF SALES.

    Section 103 of the Agricultural Trade Development and Assistance 
Act of 1954 (7 U.S.C. 1703) is amended--
            (1) in subsection (a)(2)(A)--
                    (A) by striking ``a recipient country to make''; 
                and
                    (B) by striking ``such country'' and inserting 
                ``the appropriate country'';
            (2) in subsection (c), by striking ``less than 10 nor''; 
        and
            (3) in subsection (d)--
                    (A) by striking ``recipient country'' and inserting 
                ``developing country or private entity''; and
                    (B) by striking ``7'' and inserting ``5''.

SEC. 205. USE OF LOCAL CURRENCY PAYMENT.

    Section 104 of the Agricultural Trade Development and Assistance 
Act of 1954 (7 U.S.C. 1704) is amended--
            (1) in subsection (a), by striking ``recipient country'' 
        and inserting ``developing country or private entity''; and
            (2) in subsection (c)--
                    (A) by striking ``recipient country'' each place it 
                appears and inserting ``appropriate developing 
                country''; and
                    (B) in paragraph (3), by striking ``recipient 
                countries'' and inserting ``appropriate developing 
                countries''.

SEC. 206. VALUE-ADDED FOODS.

    Section 105 of the Agricultural Trade Development and Assistance 
Act of 1954 (7 U.S.C. 1705) is repealed.

SEC. 207. ELIGIBLE ORGANIZATIONS.

    (a) In General.--Section 202 of the Agricultural Trade Development 
and Assistance Act of 1954 (7 U.S.C. 1722) is amended--
            (1) by striking subsection (b) and inserting the following:
    ``(b) Nonemergency Assistance.--
            ``(1) In general.--The Administrator may provide 
        agricultural commodities for nonemergency assistance under this 
        title through eligible organizations (as described in 
        subsection (d)) that have entered into an agreement with the 
        Administrator to use the commodities in accordance with this 
        title.
            ``(2) Limitation.--The Administrator may not deny a request 
        for funds submitted under this subsection because the program 
        for which the funds are requested--
                    ``(A) would be carried out by the eligible 
                organization in a foreign country in which the Agency 
                for International Development does not have a mission, 
                office, or other presence; or
                    ``(B) is not part of a development plan for the 
                country prepared by the Agency.''; and
            (2) in subsection (e)--
                    (A) in the subsection heading, by striking 
                ``Private Voluntary Organizations and Cooperatives'' 
                and inserting ``Eligible Organizations'';
                    (B) in paragraph (1)--
                            (i) by striking ``$13,500,000'' and 
                        inserting ``$28,000,000''; and
                            (ii) by striking ``private voluntary 
                        organizations and cooperatives to assist such 
                        organizations and cooperatives'' and inserting 
                        ``eligible organizations described in 
                        subsection (d), to assist the organizations'';
                    (C) by striking paragraph (2) and inserting the 
                following:
            ``(2) Request for funds.--To receive funds made available 
        under paragraph (1), a private voluntary organization or 
        cooperative shall submit a request for the funds that is 
        subject to approval by the Administrator.''; and
                    (D) in paragraph (3), by striking ``a private 
                voluntary organization or cooperative, the 
                Administrator may provide assistance to that 
                organization or cooperative'' and inserting ``an 
                eligible organization, the Administrator may provide 
                assistance to the eligible organization''.
    (b) Conforming Amendments.--Section 207 of the Agricultural Trade 
Development and Assistance Act of 1954 (7 U.S.C. 1726a) is amended--
            (1) in subsection (a), by striking ``a private voluntary 
        organization or cooperative'' and inserting ``an eligible 
        organization''; and
            (2) in subsection (b)--
                    (A) in paragraph (1), by striking ``private 
                voluntary organizations and cooperatives'' and 
                inserting ``eligible organizations''; and
                    (B) in paragraph (2), by striking ``organizations, 
                cooperatives,'' and inserting ``eligible 
                organizations''.

SEC. 208. GENERATION AND USE OF FOREIGN CURRENCIES.

    Section 203 of the Agricultural Trade Development and Assistance 
Act of 1954 (7 U.S.C. 1723) is amended--
            (1) in subsection (a), by inserting ``, or in a country in 
        the same region,'' after ``in the recipient country'';
            (2) in subsection (b)--
                    (A) by inserting ``or in countries in the same 
                region,'' after ``in recipient countries,''; and
                    (B) by striking ``10 percent'' and inserting ``15 
                percent'';
            (3) in subsection (c), by inserting ``or in a country in 
        the same region,'' after ``in the recipient country,''; and
            (4) in subsection (d)(2), by inserting ``or within a 
        country in the same region'' after ``within the recipient 
        country''.

SEC. 209. GENERAL LEVELS OF ASSISTANCE UNDER PUBLIC LAW 480.

    Section 204(a) of the Agricultural Trade Development and Assistance 
Act of 1954 (7 U.S.C. 1724(a)) is amended--
            (1) in paragraph (1), by striking ``amount that'' and all 
        that follows through the period at the end and inserting 
        ``amount that for each of fiscal years 1996 through 2002 is not 
        less than 2,025,000 metric tons.'';
            (2) in paragraph (2), by striking ``amount that'' and all 
        that follows through the period at the end and inserting 
        ``amount that for each of fiscal years 1996 through 2002 is not 
        less than 1,550,000 metric tons.''; and
            (3) in paragraph (3), by adding at the end the following: 
        ``No waiver shall be made before the beginning of the 
        applicable fiscal year.''.

SEC. 210. FOOD AID CONSULTATIVE GROUP.

    Section 205 of the Agricultural Trade Development and Assistance 
Act of 1954 (7 U.S.C. 1725) is amended--
            (1) in subsection (a), by striking ``private voluntary 
        organizations, cooperatives and indigenous non-governmental 
        organizations'' and inserting ``eligible organizations 
        described in section 202(d)(1)'';
            (2) in subsection (b)--
                    (A) in paragraph (2), by striking ``for 
                International Affairs and Commodity Programs'' and 
                inserting ``of Agriculture for Farm and Foreign 
                Agricultural Services'';
                    (B) in paragraph (4), by striking ``and'' at the 
                end;
                    (C) in paragraph (5), by striking the period at the 
                end and inserting ``; and''; and
                    (D) by adding at the end the following:
            ``(6) representatives from agricultural producer groups in 
        the United States.'';
            (3) in the second sentence of subsection (d), by inserting 
        ``(but at least twice per year)'' after ``when appropriate''; 
        and
            (4) in subsection (f), by striking ``1995'' and inserting 
        ``2002''.

SEC. 211. SUPPORT OF NONGOVERNMENTAL ORGANIZATIONS.

    (a) In General.--Section 306(b) of the Agricultural Trade 
Development and Assistance Act of 1954 (7 U.S.C. 1727e(b)) is amended--
            (1) in the subsection heading, by striking ``Indigenous 
        Non-Governmental'' and inserting ``Nongovernmental''; and
            (2) by striking ``utilization of indigenous'' and inserting 
        ``utilization of''.
    (b) Conforming Amendment.--Section 402 of the Agricultural Trade 
Development and Assistance Act of 1954 (7 U.S.C. 1732) is amended by 
striking paragraph (6) and inserting the following:
            ``(6) Nongovernmental organization.--The term 
        `nongovernmental organization' means an organization that works 
        at the local level to solve development problems in a foreign 
        country in which the organization is located, except that the 
        term does not include an organization that is primarily an 
        agency or instrumentality of the government of the foreign 
        country.''.

SEC. 212. COMMODITY DETERMINATIONS.

    Section 401 of the Agricultural Trade Development and Assistance 
Act of 1954 (7 U.S.C. 1731) is amended--
            (1) by striking subsections (a) through (d) and inserting 
        the following:
    ``(a) Availability of Commodities.--No agricultural commodity shall 
be available for disposition under this Act if the Secretary determines 
that the disposition would reduce the domestic supply of the commodity 
below the supply needed to meet domestic requirements and provide 
adequate carryover (as determined by the Secretary), unless the 
Secretary determines that some part of the supply should be used to 
carry out urgent humanitarian purposes under this Act.'';
            (2) by redesignating subsections (e) and (f) as subsections 
        (b) and (c), respectively; and
            (3) in subsection (c) (as so redesignated), by striking 
        ``(e)(1)'' and inserting ``(b)(1)''.

SEC. 213. GENERAL PROVISIONS.

    Section 403 of the Agricultural Trade Development and Assistance 
Act of 1954 (7 U.S.C. 1733) is amended--
            (1) in subsection (b)--
                    (A) in the subsection heading, by striking 
                ``Consultations'' and inserting ``Impact on Local 
                Farmers and Economy''; and
                    (B) by striking ``consult with'' and all that 
                follows through ``other donor organizations to'';
            (2) in subsection (c)--
                    (A) by striking ``from countries''; and
                    (B) by striking ``for use'' and inserting ``or 
                use'';
            (3) in subsection (f)--
                    (A) by inserting ``or private entities, as 
                appropriate,'' after ``from countries''; and
                    (B) by inserting ``or private entities'' after 
                ``such countries''; and
            (4) in subsection (i)(2), by striking subparagraph (C).

SEC. 214. AGREEMENTS.

    Section 404 of the Agricultural Trade Development and Assistance 
Act of 1954 (7 U.S.C. 1734) is amended--
            (1) in subsection (a), by inserting ``with foreign 
        countries'' after ``Before entering into agreements'';
            (2) in subsection (b)(2)--
                    (A) by inserting ``with foreign countries'' after 
                ``with respect to agreements entered into''; and
                    (B) by inserting before the semicolon at the end 
                the following: ``and broad-based economic growth''; and
            (3) in subsection (c), by striking paragraph (1) and 
        inserting the following:
            ``(1) In general.--Agreements to provide assistance on a 
        multi-year basis to recipient countries or to eligible 
        organizations--
                    ``(A) may be made available under titles I and III; 
                and
                    ``(B) shall be made available under title II.''.

SEC. 215. USE OF COMMODITY CREDIT CORPORATION.

    Section 406 of the Agricultural Trade Development and Assistance 
Act of 1954 (7 U.S.C. 1736) is amended--
            (1) in subsection (a), by striking ``shall'' and inserting 
        ``may''; and
            (2) in subsection (b)--
                    (A) by inserting ``titles II and III of'' after 
                ``commodities made available under''; and
                    (B) by striking paragraph (4) and inserting the 
                following:
            ``(4) the vessel freight charges from United States ports 
        or designated Canadian transshipment ports, as determined by 
        the Secretary, to designated ports of entry abroad;''.

SEC. 216. ADMINISTRATIVE PROVISIONS.

    Section 407 of the Agricultural Trade Development and Assistance 
Act of 1954 (7 U.S.C. 1736a) is amended--
            (1) in subsection (a)--
                    (A) in paragraph(1), by inserting ``or private 
                entity that enters into an agreement under title I'' 
                after ``importing country''; and
                    (B) in paragraph (2), by adding at the end the 
                following: ``Resulting contracts may contain such terms 
                and conditions as the Secretary determines are 
                necessary and appropriate.'';
            (2) in subsection (c)--
                    (A) in paragraph (1)(A), by inserting ``importer 
                or'' before ``importing country''; and
                    (B) in paragraph (2)(A), by inserting ``importer 
                or'' before ``importing country'';
            (3) in subsection (d)--
                    (A) by striking paragraph (2) and inserting the 
                following:
            ``(2) Freight procurement.--Notwithstanding the Federal 
        Property and Administrative Services Act of 1949 (40 U.S.C. 471 
        et seq.) or other similar provisions of law relating to the 
        making or performance of Federal Government contracts, ocean 
        transportation under titles II and III may be procured on the 
        basis of such full and open competitive procedures. Resulting 
        contracts may contain such terms and conditions, as the 
        Administrator determines are necessary and appropriate.''; and
                    (B) by striking paragraph (4);
            (4) in subsection (g)(2)--
                    (A) in subparagraph (B), by striking ``and'' at the 
                end;
                    (B) in subparagraph (C), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following:
                    ``(D) an assessment of the progress towards 
                achieving food security in each country receiving food 
                assistance from the United States Government, with 
                special emphasis on the nutritional status of the 
                poorest populations in each country.''; and
            (5) by striking subsection (h).

SEC. 217. EXPIRATION DATE.

    Section 408 of the Agricultural Trade Development and Assistance 
Act of 1954 (7 U.S.C. 1736b) is amended by striking ``1995'' and 
inserting ``2002''.

SEC. 218. REGULATIONS.

    Section 409 of the Agricultural Trade Development and Assistance 
Act of 1954 (7 U.S.C. 1736c) is repealed.

SEC. 219. INDEPENDENT EVALUATION OF PROGRAMS.

    Section 410 of the Agricultural Trade Development and Assistance 
Act of 1954 (7 U.S.C. 1736d) is repealed.

SEC. 220. AUTHORIZATION OF APPROPRIATIONS.

    Section 412 of the Agricultural Trade Development and Assistance 
Act of 1954 (7 U.S.C. 1736f) is amended--
            (1) by striking subsections (b) and (c) and inserting the 
        following:
    ``(b) Transfer of Funds.--Notwithstanding any other provision of 
law, the President may direct that--
            ``(1) up to 15 percent of the funds available for any 
        fiscal year for carrying out any title of this Act be used to 
        carry out any other title of this Act; and
            ``(2) any funds available for title III be used to carry 
        out title II.''; and
            (2) by redesignating subsections (d) and (e) as subsections 
        (c) and (d), respectively.

SEC. 221. COORDINATION OF FOREIGN ASSISTANCE PROGRAMS.

    Section 413 of the Agricultural Trade Development and Assistance 
Act of 1954 (7 U.S.C. 1736g) is amended by inserting ``title III of'' 
before ``this Act'' each place it appears.

SEC. 222. MICRONUTRIENT FORTIFICATION PILOT PROGRAM.

    Title IV of the Agricultural Trade Development and Assistance Act 
of 1954 (7 U.S.C. 1731 et seq.) is amended by adding at the end the 
following:

``SEC. 415. MICRONUTRIENT FORTIFICATION PILOT PROGRAM.

    ``(a) In General.--Not later than September 30, 1997, the 
Secretary, in consultation with the Administrator, shall establish a 
micronutrient fortification pilot program under this Act. The purposes 
of the program shall be to--
            ``(1) assist developing countries in correcting 
        micronutrient dietary deficiencies among segments of the 
        populations of the countries; and
            ``(2) encourage the development of technologies for the 
        fortification of whole grains and other commodities that are 
        readily transferable to developing countries.
    ``(b) Selection of Participating Countries.--From among the 
countries eligible for assistance under this Act, the Secretary may 
select not more than 5 developing countries to participate in the pilot 
program.
    ``(c) Fortification.--Under the pilot program, whole grains and 
other commodities made available to a developing country selected to 
participate in the pilot program may be fortified with 1 or more 
micronutrients (including vitamin A, iron, and iodine) with respect to 
which a substantial portion of the population in the country are 
deficient. The commodity may be fortified in the United States or in 
the developing country.
    ``(d) Termination of Authority.--The authority to carry out the 
pilot program established under this section shall terminate on 
September 30, 2002.''.

SEC. 223. USE OF CERTAIN LOCAL CURRENCY.

    Title IV of the Agricultural Trade Development and Assistance Act 
of 1954 (7 U.S.C. 1731 et seq.) (as amended by section 222) is further 
amended by adding at the end the following:

``SEC. 416. USE OF CERTAIN LOCAL CURRENCY.

    ``Local currency payments received by the United States pursuant to 
agreements entered into under title I (as in effect on November 27, 
1990) may be utilized by the Secretary in accordance with section 108 
(as in effect on November 27, 1990).''.

SEC. 224. LEVELS OF ASSISTANCE UNDER FARMER-TO-FARMER PROGRAM.

    Section 501 of the Agricultural Trade Development and Assistance 
Act of 1954 (7 U.S.C. 1737) is amended--
            (1) in subsection (a)--
                    (A) by redesignating paragraphs (4) through (6) as 
                paragraphs (5) through (7), respectively; and
                    (B) by inserting after paragraph (3) the following:
            ``(4) assist the travel of farmers and other agricultural 
        professionals from developing countries, middle income 
        countries, and emerging democracies to the United States for 
        educational purposes consistent with the objectives of this 
        section;''; and
            (2) in subsection (c), by striking ``1991 through 1995'' 
        and inserting ``1996 through 2002''.

SEC. 225. FOOD SECURITY COMMODITY RESERVE.

    (a) In General.--Title III of the Agricultural Act of 1980 (7 
U.S.C. 1736f-1 et seq.) is amended to read as follows:

              ``TITLE III--FOOD SECURITY COMMODITY RESERVE

``SEC. 301. SHORT TITLE.

    ``This title may be cited as the `Food Security Commodity Reserve 
Act of 1996'.

``SEC. 302. ESTABLISHMENT OF COMMODITY RESERVE.

    ``(a) In General.--To provide for a reserve solely to meet 
emergency humanitarian food needs in developing countries, the 
Secretary of Agriculture (referred to in this title as the `Secretary') 
shall establish a reserve stock of wheat, rice, corn, or sorghum, or 
any combination of the commodities, totalling not more than 4,000,000 
metric tons for use as described in subsection (c).
    ``(b) Commodities in Reserve.--
            ``(1) In general.--The reserve established under this 
        section shall consist of--
                    ``(A) wheat in the reserve established under the 
                Food Security Wheat Reserve Act of 1980 as of the 
                effective date of the Agricultural Reform and 
                Improvement Act of 1996;
                    ``(B) wheat, rice, corn, and sorghum (referred to 
                in this section as `eligible commodities') acquired in 
                accordance with paragraph (2) to replenish eligible 
                commodities released from the reserve, including wheat 
                to replenish wheat released from the reserve 
                established under the Food Security Wheat Reserve Act 
                of 1980 but not replenished as of the effective date of 
                the Agricultural Reform and Improvement Act of 1996; 
                and
                    ``(C) such rice, corn, and sorghum as the Secretary 
                may, at such time and in such manner as the Secretary 
                determines appropriate, acquire as a result of 
                exchanging an equivalent value of wheat in the reserve 
                established under this section.
            ``(2) Replenishment of reserve.--
                    ``(A) In general.--Subject to subsection (i), 
                commodities of equivalent value to eligible commodities 
                in the reserve established under this section may be 
                acquired--
                            ``(i) through purchases--
                                    ``(I) from producers; or
                                    ``(II) in the market, if the 
                                Secretary determines that the purchases 
                                will not unduly disrupt the market; or
                            ``(ii) by designation by the Secretary of 
                        stocks of eligible commodities of the Commodity 
                        Credit Corporation.
                    ``(B) Funds.--Any use of funds to acquire eligible 
                commodities through purchases from producers or in the 
                market to replenish the reserve must be authorized in 
                an appropriation Act.
    ``(c) Release of Eligible Commodities.--
            ``(1) Emergency food assistance.--Notwithstanding any other 
        law, eligible commodities designated or acquired for the 
        reserve established under this section may be released by the 
        Secretary to provide, on a donation or sale basis, emergency 
        food assistance to developing countries at such time as the 
        domestic supply of the eligible commodities is so limited that 
        quantities of the eligible commodities cannot be made available 
        for disposition under the Agricultural Trade Development and 
        Assistance Act of 1954 (7 U.S.C. 1691 et seq.) (other than 
        disposition for urgent humanitarian purposes under section 401 
        of the Act (7 U.S.C. 1731)).
            ``(2) Provision of urgent humanitarian relief.--
                    ``(A) In general.--Notwithstanding paragraph (1), 
                eligible commodities may be released from the reserve 
                established under this section for any fiscal year, 
                without regard to the availability of domestic supply, 
                for use under title II of the Agricultural Trade 
                Development Assistance Act of 1954 (7 U.S.C. 1721 et 
                seq.) in providing urgent humanitarian relief in any 
                developing country suffering a major disaster (as 
                determined by the Secretary) in accordance with this 
                paragraph.
                    ``(B) Exceptional need.--If the eligible 
                commodities needed for relief cannot be made available 
                for relief in a timely manner under the normal means of 
                obtaining eligible commodities for food assistance 
                because of circumstances of unanticipated and 
                exceptional need, up to 500,000 metric tons of eligible 
                commodities may be released under subparagraph (A).
                    ``(C) Funds.--If the Secretary certifies that the 
                funds made available for a fiscal year to carry out 
                title II of the Agricultural Trade Development and 
                Assistance Act of 1954 (7 U.S.C. 1721 et seq.) are not 
                less than the funds made available for the previous 
                fiscal year, up to 1,000,000 metric tons of eligible 
                commodities may be released under subparagraph (A).
                    ``(D) Waiver of minimum tonnage requirements.--
                Nothing in this paragraph shall require the exercise of 
                the waiver under section 204(a)(3) of the Agricultural 
                Trade Development and Assistance Act of 1954 (7 U.S.C. 
                5624(a)(3)) as a prerequisite for the release of 
                eligible commodities under this paragraph.
                    ``(E) Limitation.--The quantity of eligible 
                commodities released under this paragraph may not 
                exceed 1,000,000 metric tons in any fiscal year.
            ``(3) Processing of eligible commodities.--Eligible 
        commodities that are released from the reserve established 
        under this section may be processed in the United States and 
        shipped to a developing country when conditions in the 
        recipient country require processing.
            ``(4) Exchange.--The Secretary may exchange an eligible 
        commodity for another United States commodity of equal value, 
        including powdered milk, pulses, and vegetable oil.
    ``(d) Use of Eligible Commodities.--Eligible commodities that are 
released from the reserve established under this section for the 
purpose of subsection (c) shall be made available under the 
Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 
1691 et seq.) to meet famine or other urgent or extraordinary relief 
needs, except that section 401 of the Act (7 U.S.C. 1731), with respect 
to determinations of availability, shall not be applicable to the 
release.
    ``(e) Management of Eligible Commodities.--The Secretary shall 
provide--
            ``(1) for the management of eligible commodities in the 
        reserve established under this section as to location and 
        quality of eligible commodities needed to meet emergency 
        situations; and
            ``(2) for the periodic rotation or replacement of stocks of 
        eligible commodities in the reserve to avoid spoilage and 
        deterioration of the commodities.
    ``(f) Treatment of Reserve Under Other Law.--Eligible commodities 
in the reserve established under this section shall not be--
            ``(1) considered a part of the total domestic supply 
        (including carryover) for the purpose of subsection (c) or for 
        the purpose of administering the Agricultural Trade Development 
        and Assistance Act of 1954 (7 U.S.C. 1691 et seq.); and
            ``(2) subject to any quantitative limitation on exports 
        that may be imposed under section 7 of the Export 
        Administration Act of 1979 (50 U.S.C. App. 2406).
    ``(g) Use of Commodity Credit Corporation.--
            ``(1) In general.--Subject to the limitations provided in 
        this section, the funds, facilities, and authorities of the 
        Commodity Credit Corporation shall be used by the Secretary in 
        carrying out this section, except that any restriction 
        applicable to the acquisition, storage, or disposition of 
        eligible commodities owned or controlled by the Commodity 
        Credit Corporation shall not apply.
            ``(2) Reimbursement.--
                    ``(A) In general.--The Commodity Credit Corporation 
                shall be reimbursed for the release of eligible 
                commodities from funds made available to carry out the 
                Agricultural Trade Development and Assistance Act of 
                1954 (7 U.S.C. 1691 et seq.).
                    ``(B) Basis for reimbursement.--The reimbursement 
                shall be made on the basis of the lesser of--
                            ``(i) the actual costs incurred by the 
                        Commodity Credit Corporation with respect to 
                        the eligible commodity; or
                            ``(ii) the export market price of the 
                        eligible commodity (as determined by the 
                        Secretary) as of the time the eligible 
                        commodity is released from the reserve for the 
                        purpose.
                    ``(C) Source of funds.--The reimbursement may be 
                made from funds appropriated for the purpose of 
                reimbursement in subsequent fiscal years.
    ``(h) Finality of Determination.--Any determination by the 
Secretary under this section shall be final.
    ``(i) Termination of Authority.--
            ``(1) In general.--The authority to replenish stocks of 
        eligible commodities to maintain the reserve established under 
        this section shall terminate on September 30, 2002.
            ``(2) Disposal of eligible commodities.--Eligible 
        commodities remaining in the reserve after September 30, 2002, 
        shall be disposed of by release for use in providing for 
        emergency humanitarian food needs in developing countries as 
        provided in this section.''.
    (b) Conforming Amendment.--Section 208(d) of the Agriculture Trade 
Suspension Adjustment Act of 1980 (7 U.S.C. 4001(d)) is amended by 
striking paragraph (2) and inserting the following:
            ``(2) Applicability of certain provisions.--Subsections 
        (c), (d), (e), (f), and (g)(2) of section 302 of the Food 
        Security Commodity Reserve Act of 1996 shall apply to 
        commodities in any reserve established under paragraph (1), 
        except that the references to `eligible commodities' in the 
        subsections shall be deemed to be references to `agricultural 
        commodities'.''.

SEC. 226. PROTEIN BYPRODUCTS DERIVED FROM ALCOHOL FUEL PRODUCTION.

    Section 1208 of the Agriculture and Food Act of 1981 (7 U.S.C. 
1736n) is repealed.

SEC. 227. FOOD FOR PROGRESS PROGRAM.

    The Food for Progress Act of 1985 (7 U.S.C. 1736o) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1)--
                            (i) by striking ``(b)(1)'' and inserting 
                        ``(b)''; and
                            (ii) in the first sentence, by inserting 
                        ``intergovernmental organizations'' after 
                        ``cooperatives''; and
                    (B) by striking paragraph (2);
            (2) in subsection (e)(4), by striking ``203'' and inserting 
        ``406'';
            (3) in subsection (f)--
                    (A) in paragraph (1), by striking ``in the case of 
                the independent states of the former Soviet Union,'';
                    (B) by striking paragraph (2);
                    (C) in paragraph (4), by inserting ``in each of 
                fiscal years 1996 through 2002'' after ``may be used''; 
                and
                    (D) by redesignating paragraphs (3) through (5) as 
                paragraphs (2) through (4), respectively;
            (4) in subsection (g), by striking ``1995'' and inserting 
        ``2002'';
            (5) in subsection (j), by striking ``shall'' and inserting 
        ``may'';
            (6) in subsection (k), by striking ``1995'' and inserting 
        ``2002'';
            (7) in subsection (l)(1)--
                    (A) by striking ``1991 through 1995'' and inserting 
                ``1996 through 2002''; and
                    (B) by inserting ``, and to provide technical 
                assistance for monetization programs,'' after 
                ``monitoring of food assistance programs''; and
            (8) in subsection (m)--
                    (A) by striking ``with respect to the independent 
                states of the former Soviet Union'';
                    (B) by striking ``private voluntary organizations 
                and cooperatives'' each place it appears and inserting 
                ``agricultural trade organizations, intergovernmental 
                organizations, private voluntary organizations, and 
                cooperatives''; and
                    (C) in paragraph (2), by striking ``in the 
                independent states''.

SEC. 228. USE OF FOREIGN CURRENCY PROCEEDS FROM EXPORT SALES FINANCING.

    Section 402 of the Mutual Security Act of 1954 (22 U.S.C. 1922) is 
repealed.

SEC. 229. STIMULATION OF FOREIGN PRODUCTION.

    Section 7 of the Act of December 30, 1947 (61 Stat. 947, chapter 
526; 50 U.S.C. App. 1917) is repealed.

        Subtitle B--Amendments to Agricultural Trade Act of 1978

SEC. 241. AGRICULTURAL EXPORT PROMOTION STRATEGY.

    (a) In General.--Section 103 of the Agricultural Trade Act of 1978 
(7 U.S.C. 5603) is amended to read as follows:

``SEC. 103. AGRICULTURAL EXPORT PROMOTION STRATEGY.

    ``(a) In General.--The Secretary shall develop a strategy for 
implementing Federal agricultural export promotion programs that takes 
into account the new market opportunities for agricultural products, 
including opportunities that result from--
            ``(1) the North American Free Trade Agreement and the 
        Uruguay Round Agreements;
            ``(2) any accession to membership in the World Trade 
        Organization;
            ``(3) the continued economic growth in the Pacific Rim; and
            ``(4) other developments.
    ``(b) Purpose of Strategy.--The strategy developed under subsection 
(a) shall encourage the maintenance, development, and expansion of 
export markets for United States agricultural commodities and related 
products, including high-value and value-added products.
    ``(c) Goals of Strategy.--The strategy developed under subsection 
(a) shall have the following goals:
            ``(1) By September 30, 2002, increasing the value of annual 
        United States agricultural exports to $60,000,000,000.
            ``(2) By September 30, 2002, increasing the United States 
        share of world export trade in agricultural products 
        significantly above the average United States share from 1993 
        through 1995.
            ``(3) By September 30, 2002, increasing the United States 
        share of world trade in high-value agricultural products to 20 
        percent.
            ``(4) Ensuring that the value of United States exports of 
        agricultural products increases at a faster rate than the rate 
        of increase in the value of overall world export trade in 
        agricultural products.
            ``(5) Ensuring that the value of United States exports of 
        high-value agricultural products increases at a faster rate 
        than the rate of increase in overall world export trade in 
        high-value agricultural products.
            ``(6) Ensuring to the extent practicable that--
                    ``(A) substantially all obligations undertaken in 
                the Uruguay Round Agreement on Agriculture that provide 
                significantly increased access for United States 
                agricultural commodities are implemented to the extent 
                required by the Uruguay Round Agreements; or
                    ``(B) applicable United States trade laws are used 
                to secure United States rights under the Uruguay Round 
                Agreement on Agriculture.
    ``(d) Priority Markets.--
            ``(1) Identification of markets.--In developing the 
        strategy required under subsection (a), the Secretary shall 
        identify as priority markets--
                    ``(A) those markets in which imports of 
                agricultural products show the greatest potential for 
                increase by September 30, 2002; and
                    ``(B) those markets in which, with the assistance 
                of Federal export promotion programs, exports of United 
                States agricultural products show the greatest 
                potential for increase by September 30, 2002.
            ``(2) Identification of supporting offices.--The President 
        shall identify annually in the budget of the United States 
        Government submitted under section 1105 of title 31, United 
        States Code, each overseas office of the Foreign Agricultural 
        Service that provides assistance to United States exporters in 
        each of the priority markets identified under paragraph (1).
    ``(e) Report.--Not later than December 31, 2001, the Secretary 
shall prepare and submit a report to Congress assessing progress in 
meeting the goals established by subsection (c).
    ``(f) Failure To Meet Goals.--Notwithstanding any other law, if the 
Secretary determines that more than 2 of the goals established by 
subsection (c) are not met by September 30, 2002, the Secretary may not 
carry out agricultural trade programs under the Agricultural Trade Act 
of 1978 (7 U.S.C. 5601 et seq.) as of that date.
    ``(g) No Private Right of Action.--This section shall not create 
any private right of action.''.
    (b) Continuation of Funding.--
            (1) In general.--If the Secretary of Agriculture makes a 
        determination under section 103(f) of the Agricultural Trade 
        Act of 1978 (as amended by subsection (a)), the Secretary shall 
        utilize funds of the Commodity Credit Corporation to promote 
        United States agricultural exports in a manner consistent with 
        the Commodity Credit Corporation Charter Act (15 U.S.C. 714 et 
        seq.) and obligations pursuant to the Uruguay Round Agreements.
            (2) Funding.--The amount of Commodity Credit Corporation 
        funds used to carry out paragraph (1) during a fiscal year 
        shall not exceed the total outlays for agricultural trade 
        programs under the Agricultural Trade Act of 1978 (7 U.S.C. 
        5601 et seq.) during fiscal year 2002.
    (c) Elimination of Report.--
            (1) In general.--Section 601 of the Agricultural Trade Act 
        of 1978 (7 U.S.C. 5711) is repealed.
            (2) Conforming amendment.--The last sentence of section 603 
        of the Agricultural Trade Act of 1978 (7 U.S.C. 5713) is 
        amended by striking ``, in a consolidated report,'' and all 
        that follows through ``section 601'' and inserting ``or in a 
        consolidated report''.

SEC. 242. EXPORT CREDITS.

    (a) Export Credit Guarantee Program.--Section 202 of the 
Agricultural Trade Act of 1978 (7 U.S.C. 5622) is amended--
            (1) in subsection (a)--
                    (A) by striking ``Guarantees.--The'' and inserting 
                the following: ``Guarantees.--
            ``(1) In general.--The''; and
                    (B) by adding at the end the following:
            ``(2) Supplier credits.--In carrying out this section, the 
        Commodity Credit Corporation may issue guarantees for the 
        repayment of credit made available for a period of not more 
        than 180 days by a United States exporter to a buyer in a 
        foreign country.'';
            (2) in subsection (f)--
                    (A) by striking ``(f) Restrictions.--The'' and 
                inserting the following:
    ``(f) Restrictions.--
            ``(1) In general.--The''; and
                    (B) by adding at the end the following:
            ``(2) Criteria for determination.--In making the 
        determination required under paragraph (1) with respect to 
        credit guarantees under subsection (b) for a country, the 
        Secretary may consider, in addition to financial, 
        macroeconomic, and monetary indicators--
                    ``(A) whether an International Monetary Fund 
                standby agreement, Paris Club rescheduling plan, or 
                other economic restructuring plan is in place with 
                respect to the country;
                    ``(B) the convertibility of the currency of the 
                country;
                    ``(C) whether the country provides adequate legal 
                protection for foreign investments;
                    ``(D) whether the country has viable financial 
                markets;
                    ``(E) whether the country provides adequate legal 
                protection for the private property rights of citizens 
                of the country; and
                    ``(F) any other factors that are relevant to the 
                ability of the country to service the debt of the 
                country.'';
            (3) by striking subsection (h) and inserting the following:
    ``(h) United States Agricultural Components.--The Commodity Credit 
Corporation shall finance or guarantee under this section only United 
States agricultural commodities.'';
            (4) in subsection (i)--
                    (A) by striking ``Institutions.--A financial'' and 
                inserting the following: ``Institutions.--
            ``(1) In general.--A financial'';
                    (B) by striking paragraph (1);
                    (C) by striking ``(2) is'' and inserting the 
                following:
                    ``(A) is'';
                    (D) by striking ``(3) is'' and inserting the 
                following:
                    ``(B) is''; and
                    (E) by adding at the end the following:
            ``(2) Third country banks.--The Commodity Credit 
        Corporation may guarantee under subsections (a) and (b) the 
        repayment of credit made available to finance an export sale 
        irrespective of whether the obligor is located in the country 
        to which the export sale is destined.''; and
            (5) by striking subsection (k) and inserting the following:
    ``(k) Processed and High-Value Products.--
            ``(1) In general.--In issuing export credit guarantees 
        under this section, the Commodity Credit Corporation shall, 
        subject to paragraph (2), ensure that not less than 25 percent 
        for each of fiscal years 1996 and 1997, 30 percent for each of 
        fiscal years 1998 and 1999, and 35 percent for each of fiscal 
        years 2000, 2001, and 2002, of the total amount of credit 
        guarantees issued for a fiscal year is issued to promote the 
        export of processed or high-value agricultural products and 
        that the balance is issued to promote the export of bulk or raw 
        agricultural commodities.
            ``(2) Limitation.--The percentage requirement of paragraph 
        (1) shall apply for a fiscal year to the extent that a 
        reduction in the total amount of credit guarantees issued for 
        the fiscal year is not required to meet the percentage 
        requirement.''.
    (b) Funding Levels.--Section 211(b) of the Agricultural Trade Act 
of 1978 (7 U.S.C. 5641(b)) is amended--
            (1) by striking paragraph (2);
            (2) by redesignating subparagraph (B) of paragraph (1) as 
        paragraph (2) and indenting the margin of paragraph (2) (as so 
        redesignated) so as to align with the margin of paragraph (1); 
        and
            (3) by striking paragraph (1) and inserting the following:
            ``(1) Export credit guarantees.--The Commodity Credit 
        Corporation shall make available for each of fiscal years 1996 
        through 2002 not less than $5,500,000,000 in credit guarantees 
        under subsections (a) and (b) of section 202.''.
    (c) Definitions.--Section 102(7) of the Agricultural Trade Act of 
1978 (7 U.S.C. 5602(7)) is amended by striking subparagraphs (A) and 
(B) and inserting the following:
                    ``(A) an agricultural commodity or product entirely 
                produced in the United States; or
                    ``(B) a product of an agricultural commodity--
                            ``(i) 90 percent or more of which by 
                        weight, excluding packaging and water, is 
                        entirely produced in the United States; and
                            ``(ii) that the Secretary determines to be 
                        a high value agricultural product.''.
    (d) Regulations.--Not later than 180 days after the effective date 
of this title, the Secretary of Agriculture shall issue regulations to 
carry out the amendments made by this section.

SEC. 243. MARKET PROMOTION PROGRAM.

    Effective October 1, 1995, section 211(c)(1) of the Agricultural 
Trade Act of 1978 (7 U.S.C. 5641(c)(1)) is amended--
            (1) by striking ``and'' after ``1991 through 1993,''; and
            (2) by striking ``through 1997,'' and inserting ``through 
        1995, and not more than $70,000,000 for each of fiscal years 
        1996 through 2002,'':
Provided, That funds made available under this Act to carry out the 
non-generic activities of the market promotion program established 
under section 203 of the Agricultural Trade Act of 1978 (7 U.S.C. 5623) 
may be used to provide cost-share assistance only to organizations that 
are non-foreign entities and are recognized as small business concerns 
under section 3(a) of the Small Business Act (15 U.S.C. 632(a)) or to 
the associations described in the first section of the Act entitled 
``An Act to authorize association of producers of agricultural 
products'', approved February 22, 1922 (7 U.S.C. 291): Provided 
further, that such funds may not be used to provide cost-share 
assistance to a foreign eligible trade organization: Provided further, 
That none of the funds made available under this Act may be used to 
carry out the market promotion program established under section 203 of 
the Agricultural Trade Act of 1978 (7 U.S.C. 5623) if the aggregate 
amount of funds and value of commodities under the program exceeds 
$70,000,000.

SEC. 244. EXPORT ENHANCEMENT PROGRAM.

    Effective October 1, 1995, section 301(e)(1) of the Agricultural 
Trade Act of 1978 (7 U.S.C. 5651(e)(1)) is amended to read as follows:
            ``(1) In general.--The Commodity Credit Corporation shall 
        make available to carry out the program established under this 
        section not more than--
                    ``(A) $350,000,000 for fiscal year 1996;
                    ``(B) $350,000,000 for fiscal year 1997;
                    ``(C) $500,000,000 for fiscal year 1998;
                    ``(D) $550,000,000 for fiscal year 1999;
                    ``(E) $579,000,000 for fiscal year 2000;
                    ``(F) $478,000,000 for fiscal year 2001; and
                    ``(G) $478,000,000 for fiscal year 2002.''.

SEC. 245. ARRIVAL CERTIFICATION.

    Section 401 of the Agricultural Trade Act of 1978 (7 U.S.C. 
5662(a)) is amended by striking subsection (a) and inserting the 
following:
    ``(a) Arrival Certification.--With respect to a commodity provided, 
or for which financing or a credit guarantee or other assistance is 
made available, under a program authorized in section 201, 202, or 301, 
the Commodity Credit Corporation shall require the exporter of the 
commodity to maintain records of an official or customary commercial 
nature or other documents as the Secretary may require, and shall allow 
representatives of the Commodity Credit Corporation access to the 
records or documents as needed, to verify the arrival of the commodity 
in the country that was the intended destination of the commodity.''.

SEC. 246. COMPLIANCE.

    Section 402(a) of the Agricultural Trade Act of 1978 (7 U.S.C. 
5662(a)) is amended--
            (1) by striking paragraph (2); and
            (2) by redesignating paragraph (3) as paragraph (2).

SEC. 247. REGULATIONS.

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

SEC. 248. TRADE COMPENSATION AND ASSISTANCE PROGRAMS.

    Title IV of the Agricultural Trade Act of 1978 (7 U.S.C. 5661 et 
seq.) is amended by adding at the end the following:

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

    ``(a) In General.--Notwithstanding any other law, if, after the 
effective date of this section, the President or any other member of 
the Executive branch causes exports from the United States to any 
country to be unilaterally suspended for reasons of national security 
or foreign policy, and if within 180 days after the date on which the 
suspension is imposed on United States exports no other country agrees 
to participate in the suspension, the Secretary shall carry out a trade 
compensation and assistance program in accordance with this section 
(referred to in this section as a `program').
    ``(b) Provision of Funds.--Under a program, the Secretary shall 
make available for each fiscal year funds of the Commodity Credit 
Corporation, in an amount calculated under subsection (c), to promote 
agricultural exports or provide agricultural commodities to developing 
countries, under any authorities available to the Secretary.
    ``(c) Determination of Amount of Funds.--For each fiscal year of a 
program, the amount of funds made available under subsection (b) shall 
be equal to 90 percent of the average annual value of United States 
agricultural exports to the country with respect to which exports are 
suspended during the most recent 3 years prior to the suspension for 
which data are available.
    ``(d) Duration of Program.--
            ``(1) In general.--For each suspension of exports for which 
        a program is implemented under this section, funds shall be 
        made available under subsection (b) for each fiscal year or 
        part of a fiscal year for which the suspension is in effect, 
        but not to exceed 2 fiscal years.
            ``(2) Partial-year embargoes.--Regardless of whether an 
        embargo is in effect for only part of a fiscal year, the full 
        amount of funds as calculated under subsection (c) shall be 
        made available under a program for the fiscal year. If the 
        Secretary determines that making the required amount of funds 
        available in a partial fiscal year is impracticable, the 
        Secretary may make all or part of the funds required to be made 
        available in the partial fiscal year available in the following 
        fiscal year (in addition to any funds otherwise required under 
        a program to be made available in the following fiscal 
        year).''.

SEC. 249. FOREIGN AGRICULTURAL SERVICE.

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

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

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

SEC. 250. REPORTS.

    The first sentence of section 603 of the Agricultural Trade Act of 
1978 (7 U.S.C. 5713) is amended by striking ``The'' and inserting 
``Subject to section 217 of the Department of Agriculture 
Reorganization Act of 1994 (7 U.S.C. 6917), the''.

                       Subtitle C--Miscellaneous

SEC. 251. REPORTING REQUIREMENTS RELATING TO TOBACCO.

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

SEC. 252. TRIGGERED EXPORT ENHANCEMENT.

    (a) Readjustment of Support Levels.--Section 1302 of the Omnibus 
Budget Reconciliation Act of 1990 (Public Law 101-508; 7 U.S.C. 1421 
note) is repealed.
    (b) Triggered Marketing Loans and Export Enhancement.--Section 4301 
of the Omnibus Trade and Competitiveness Act of 1988 (Public Law 100-
418; 7 U.S.C. 1446 note) is repealed.
    (c) Effective Date.--The amendments made by this section shall be 
effective beginning with the 1996 crops of wheat, feed grains, upland 
cotton, and rice.

SEC. 253. DISPOSITION OF COMMODITIES TO PREVENT WASTE.

    Section 416 of the Agricultural Act of 1949 (7 U.S.C. 1431) is 
amended--
            (1) in subsection (b)--
                    (A) in paragraph (1), by inserting after the first 
                sentence the following: ``The Secretary may use funds 
                of the Commodity Credit Corporation to cover 
                administrative expenses of the programs.'';
                    (B) in paragraph (7)(D)(iv), by striking ``one year 
                of acquisition'' and all that follows and inserting the 
                following: ``a reasonable length of time, as determined 
                by the Secretary, except that the Secretary may permit 
                the use of proceeds in a country other than the country 
                of origin--
                    ``(I) as necessary to expedite the transportation 
                of commodities and products furnished under this 
                subsection; or
                    ``(II) if the proceeds are generated in a currency 
                generally accepted in the other country.'';
                    (C) in paragraph (8), by striking subparagraph (C); 
                and
                    (D) by striking paragraphs (10), (11), and (12); 
                and
            (2) by striking subsection (c).

SEC. 254. DIRECT SALES OF DAIRY PRODUCTS.

    Section 106 of the Agriculture and Food Act of 1981 (7 U.S.C. 
1446c-1) is repealed.

SEC. 255. EXPORT SALES OF DAIRY PRODUCTS.

    Section 1163 of the Food Security Act of 1985 (Public Law 99-198; 7 
U.S.C. 1731 note) is repealed.

SEC. 256. DEBT-FOR-HEALTH-AND-PROTECTION SWAP.

    (a) In General.--Section 1517 of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 1706) is repealed.
    (b) Conforming Amendment.--Subsection (e)(3) of the Food for 
Progress Act of 1985 (7 U.S.C. 1736o(e)(3)) is amended by striking 
``section 106'' and inserting ``section 103''.

SEC. 257. POLICY ON EXPANSION OF INTERNATIONAL MARKETS.

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

SEC. 258. POLICY ON MAINTENANCE AND DEVELOPMENT OF EXPORT MARKETS.

    Section 1121 of the Food Security Act of 1985 (7 U.S.C. 1736p) is 
amended--
            (1) by striking subsection (a); and
            (2) in subsection (b)--
                    (A) by striking ``(b)''; and
                    (B) by striking paragraphs (1) through (4) and 
                inserting the following:
            ``(1) be the premier supplier of agricultural and food 
        products to world markets and expand exports of high value 
        products;
            ``(2) support the principle of free trade and the promotion 
        of fair trade in agricultural commodities and products;
            ``(3) cooperate fully in all efforts to negotiate with 
        foreign countries further reductions in tariff and nontariff 
        barriers to trade, including sanitary and phytosanitary 
        measures and trade-distorting subsidies;
            ``(4) aggressively counter unfair foreign trade practices 
        as a means of encouraging fairer trade;''.

SEC. 259. POLICY ON TRADE LIBERALIZATION.

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

SEC. 260. AGRICULTURAL TRADE NEGOTIATIONS.

    Section 1123 of the Food Security Act of 1985 (7 U.S.C. 1736r) is 
amended to read as follows:

``SEC. 1123. TRADE NEGOTIATIONS POLICY.

    ``(a) Findings.--Congress finds that--
            ``(1) on a level playing field, United States producers are 
        the most competitive suppliers of agricultural products in the 
        world;
            ``(2) exports of United States agricultural products will 
        account for $53,000,000,000 in 1995, contributing a net 
        $24,000,000,000 to the merchandise trade balance of the United 
        States and supporting approximately 1,000,000 jobs;
            ``(3) increased agricultural exports are critical to the 
        future of the farm, rural, and overall United States economy, 
        but the opportunities for increased agricultural exports are 
        limited by the unfair subsidies of the competitors of the 
        United States, and a variety of tariff and nontariff barriers 
        to highly competitive United States agricultural products;
            ``(4) international negotiations can play a key role in 
        breaking down barriers to United States agricultural exports;
            ``(5) the Uruguay Round Agreement on Agriculture made 
        significant progress in the attainment of increased market 
        access opportunities for United States exports of agricultural 
        products, for the first time--
                    ``(A) restraining foreign trade-distorting domestic 
                support and export subsidy programs; and
                    ``(B) developing common rules for the application 
                of sanitary and phytosanitary restrictions;
        that should result in increased exports of United States 
        agricultural products, jobs, and income growth in the United 
        States;
            ``(6) the Uruguay Round Agreement on Agriculture did not 
        succeed in completely eliminating trade distorting domestic 
        support and export subsidies by--
                    ``(A) allowing the European Union to continue 
                unreasonable levels of spending on export subsidies; 
                and
                    ``(B) failing to discipline monopolistic state 
                trading entities, such as the Canadian Wheat Board, 
                that use nontransparent and discriminatory pricing as a 
                hidden de facto export subsidy;
            ``(7) during the period 1996 through 2002, there will be 
        several opportunities for the United States to negotiate fairer 
        trade in agricultural products, including further negotiations 
        under the World Trade Organization, and steps toward possible 
        free trade agreements of the Americas and Asian-Pacific 
        Economic Cooperation (APEC); and
            ``(8) the United States should aggressively use these 
        opportunities to achieve more open and fair opportunities for 
        trade in agricultural products.
    ``(b) Goals of the United States in Agricultural Trade 
Negotiations.--The objectives of the United States with respect to 
future negotiations on agricultural trade include--
            ``(1) increasing opportunities for United States exports of 
        agricultural products by eliminating or substantially reducing 
        tariff and nontariff barriers to trade;
            ``(2) leveling the playing field for United States 
        producers of agricultural products by limiting per unit 
        domestic production supports to levels that are no greater than 
        those available in the United States;
            ``(3) ending the practice of export dumping by eliminating 
        all trade distorting export subsidies and disciplining state 
        trading entities so that they do not (except in cases of bona 
        fide food aid) sell in foreign markets at below domestic market 
        prices nor their full costs of acquiring and delivering 
        agricultural products to the foreign markets; and
            ``(4) encouraging government policies that avoid price-
        depressing surpluses.''.

SEC. 261. POLICY ON UNFAIR TRADE PRACTICES.

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

SEC. 262. AGRICULTURAL AID AND TRADE MISSIONS.

    (a) In General.--The Agricultural Aid and Trade Missions Act (7 
U.S.C. 1736bb et seq.) is repealed.
    (b) Conforming Amendment.--Section 7 of Public Law 100-277 (7 
U.S.C. 1736bb note) is repealed.

SEC. 263. ANNUAL REPORTS BY AGRICULTURAL ATTACHES.

    Section 108(b)(1)(B) of the Agricultural Act of 1954 (7 U.S.C. 
1748(b)(1)(B)) is amended by striking ``including fruits, vegetables, 
legumes, popcorn, and ducks''.

SEC. 264. WORLD LIVESTOCK MARKET PRICE INFORMATION.

    Section 1545 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (Public Law 101-624; 7 U.S.C. 1761 note) is repealed.

SEC. 265. ORDERLY LIQUIDATION OF STOCKS.

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

SEC. 266. SALES OF EXTRA LONG STAPLE COTTON.

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

SEC. 267. REGULATIONS.

    Section 707 of the Freedom for Russia and Emerging Eurasian 
Democracies and Open Markets Support Act of 1992 (Public Law 102-511; 7 
U.S.C. 5621 note) is amended by striking subsection (d).

SEC. 268. EMERGING MARKETS.

    (a) Promotion of Agricultural Exports to Emerging Markets.--
            (1) Emerging markets.--Section 1542 of the Food, 
        Agriculture, Conservation, and Trade Act of 1990 (Public Law 
        101-624; 7 U.S.C. 5622 note) is amended--
                    (A) in the section heading, by striking ``emerging 
                democracies'' and inserting ``emerging markets'';
                    (B) by striking ``emerging democracies'' each place 
                it appears in subsections (b), (d), and (e) and 
                inserting ``emerging markets'';
                    (C) by striking ``emerging democracy'' each place 
                it appears in subsection (c) and inserting ``emerging 
                market''; and
                    (D) by striking subsection (f) and inserting the 
                following:
    ``(f) Emerging Market.--In this section and section 1543, the term 
`emerging market' means any country that the Secretary determines--
            ``(1) is taking steps toward a market-oriented economy 
        through the food, agriculture, or rural business sectors of the 
        economy of the country; and
            ``(2) has the potential to provide a viable and significant 
        market for United States agricultural commodities or products 
        of United States agricultural commodities.''.
            (2) Funding.--Section 1542 of the Food, Agriculture, 
        Conservation, and Trade Act of 1990 is amended by striking 
        subsection (a) and inserting the following:
    ``(a) Funding.--The Commodity Credit Corporation shall make 
available for fiscal years 1996 through 2002 not less than 
$1,000,000,000 of direct credits or export credit guarantees for 
exports to emerging markets under section 201 or 202 of the 
Agricultural Trade Act of 1978 (7 U.S.C. 5621 and 5622), in addition to 
the amounts acquired or authorized under section 211 of the Act (7 
U.S.C. 5641) for the program.''.
            (3) Agricultural fellowship program.--Section 1542 of the 
        Food, Agriculture, Conservation, and Trade Act of 1990 is 
        amended--
                    (A) in subsection (b), by striking the last 
                sentence and inserting the following: ``The Commodity 
                Credit Corporation shall give priority under this 
                subsection to--
            ``(A) projects that encourage the privatization of the 
        agricultural sector or that benefit private farms or 
        cooperatives in emerging markets; and
            ``(B) projects for which nongovernmental persons agree to 
        assume a relatively larger share of the costs.''; and
                    (B) in subsection (d)--
                            (i) in the matter preceding paragraph (1), 
                        by striking ``the Soviet Union'' and inserting 
                        ``emerging markets'';
                            (ii) in paragraph (1)--
                                    (I) in subparagraph (A)(i)--
                                            (aa) by striking ``1995'' 
                                        and inserting ``2002''; and
                                            (bb) by striking ``those 
                                        systems, and identify'' and 
                                        inserting ``the systems, 
                                        including potential reductions 
                                        in trade barriers, and identify 
                                        and carry out'';
                                    (II) in subparagraph (B), by 
                                striking ``shall'' and inserting 
                                ``may'';
                                    (III) in subparagraph (D), by 
                                inserting ``(including the 
                                establishment of extension services)'' 
                                after ``technical assistance'';
                                    (IV) by striking subparagraph (F);
                                    (V) by redesignating subparagraphs 
                                (G), (H), and (I) as subparagraphs (F), 
                                (G), and (H), respectively; and
                                    (VI) in subparagraph (H) (as 
                                redesignated by subclause (V)), by 
                                striking ``$10,000,000'' and inserting 
                                ``$20,000,000'';
                            (iii) in paragraph (2)--
                                    (I) by striking ``the Soviet 
                                Union'' each place it appears and 
                                inserting ``emerging markets'';
                                    (II) in subparagraph (A), by 
                                striking ``a free market food 
                                production and distribution system'' 
                                and inserting ``free market food 
                                production and distribution systems'';
                                    (III) in subparagraph (B)--
                                            (aa) in clause (i), by 
                                        striking ``Government'' and 
                                        inserting ``governments'';
                                            (bb) in clause (iii)(II), 
                                        by striking ``and'' at the end;
                                            (cc) in clause (iii)(III), 
                                        by striking the period at the 
                                        end and inserting ``; and''; 
                                        and
                                            (dd) by adding at the end 
                                        of clause (iii) the following:
                                    ``(IV) to provide for the exchange 
                                of administrators and faculty members 
                                from agricultural and other 
                                institutions to strengthen and revise 
                                educational programs in agricultural 
                                economics, agribusiness, and agrarian 
                                law, to support change towards a free 
                                market economy in emerging markets.'';
                                    (IV) by striking subparagraph (D); 
                                and
                                    (V) by redesignating subparagraph 
                                (E) as subparagraph (D); and
                            (iv) by striking paragraph (3).
            (4) United states agricultural commodity.--Subsections (b) 
        and (c) of section 1542 of the Food, Agriculture, Conservation, 
        and Trade Act of 1990 are amended by striking ``section 
        101(6)'' each place it appears and inserting ``section 
        102(7)''.
            (5) Report.--The first sentence of section 1542(e)(2) of 
        the Food, Agriculture, Conservation, and Trade Act of 1990 is 
        amended by striking ``Not'' and inserting ``Subject to section 
        217 of the Department of Agriculture Reorganization Act of 1994 
        (7 U.S.C. 6917), not''.
    (b) Agricultural Fellowship Program for Middle Income Countries, 
Emerging Democracies, and Emerging Markets.--Section 1543 of the Food, 
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 3293) is 
amended--
            (1) in the section heading, by striking ``middle income 
        countries and emerging democracies'' and inserting ``middle 
        income countries, emerging democracies, and emerging markets'';
            (2) in subsection (b), by adding at the end the following:
            ``(5) Emerging market.--Any emerging market, as defined in 
        section 1542(f).''; and
            (3) in subsection (c)(1), by striking ``food needs'' and 
        inserting ``food and fiber needs''.
    (c) Conforming Amendments.--
            (1) Section 501 of the Agricultural Trade Development and 
        Assistance Act of 1954 (7 U.S.C. 1737) is amended--
                    (A) in subsection (a), by striking ``emerging 
                democracies'' and inserting ``emerging markets''; and
                    (B) in subsection (b), by striking paragraph (1) 
                and inserting the following:
            ``(1) Emerging market.--The term `emerging market' means 
        any country that the Secretary determines--
                    ``(A) is taking steps toward a market-oriented 
                economy through the food, agriculture, or rural 
                business sectors of the economy of the country; and
                    ``(B) has the potential to provide a viable and 
                significant market for United States agricultural 
                commodities or products of United States agricultural 
                commodities.''.
            (2) Section 201(d)(1)(C)(ii) of the Agricultural Trade Act 
        of 1978 (7 U.S.C. 5621(d)(1)(C)(ii)) is amended by striking 
        ``emerging democracies'' and inserting ``emerging markets''.
            (3) Section 202(d)(3)(B) of the Agricultural Trade Act of 
        1978 (7 U.S.C. 5622(d)(3)(B)) is amended by striking ``emerging 
        democracies'' and inserting ``emerging markets''.

SEC. 269. IMPORT ASSISTANCE FOR CBI BENEFICIARY COUNTRIES AND THE 
              PHILIPPINES.

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

SEC. 270. STUDIES, REPORTS, AND OTHER PROVISIONS.

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

SEC. 271. IMPLEMENTATION OF COMMITMENTS UNDER URUGUAY ROUND AGREEMENTS.

    Part III of subtitle A of title IV of the Uruguay Round Agreements 
Act (Public Law 103-465; 108 Stat. 4964) is amended by adding at the 
end the following:

``SEC. 427. IMPLEMENTATION OF COMMITMENTS UNDER URUGUAY ROUND 
              AGREEMENTS.

    ``Not later than September 30 of each fiscal year, the Secretary of 
Agriculture shall determine whether the obligations undertaken by 
foreign countries under the Uruguay Round Agreement on Agriculture are 
being fully implemented. If the Secretary of Agriculture determines 
that any foreign country, by not implementing the obligations of the 
country, is significantly constraining an opportunity for United States 
agricultural exports, the Secretary shall--
            ``(1) submit to the United States Trade Representative a 
        recommendation as to whether the President should take action 
        under any provision of law; and
            ``(2) transmit a copy of the recommendation to the 
        Committee on Agriculture, and the Committee on Ways and Means, 
        of the House of Representatives and the Committee on 
        Agriculture, Nutrition, and Forestry, and the Committee on 
        Finance, of the Senate.''.

SEC. 272. SENSE OF CONGRESS CONCERNING MULTILATERAL DISCIPLINES ON 
              CREDIT GUARANTEES.

    It is the sense of Congress that--
            (1) in negotiations to establish multilateral disciplines 
        on agricultural export credits and credit guarantees, the 
        United States should not agree to any arrangement that is 
        incompatible with the provisions of United States law that 
        authorize agricultural export credits and credit guarantees;
            (2) in the negotiations (which are held under the auspices 
        of the Organization for Economic Cooperation and Development), 
        the United States should not reach any agreement that fails to 
        impose disciplines on the practices of foreign government 
        trading entities such as the Australian Wheat Board and 
        Canadian Wheat Board; and
            (3) the disciplines should include greater openness in the 
        operations of the entities as long as the entities are 
        subsidized by the foreign government or have monopolies for 
        exports of a commodity that are sanctioned by the foreign 
        government.

SEC. 273. FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM.

    The Agricultural Trade Act of 1978 (7 U.S.C. 5601 et seq.) is 
amended by adding at the end the following:

       ``TITLE VII--FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM

``SEC. 701. DEFINITION OF ELIGIBLE TRADE ORGANIZATION.

    ``In this title, the term `eligible trade organization' means a 
United States trade organization that--
            ``(1) promotes the export of 1 or more United States 
        agricultural commodities or products; and
            ``(2) does not have a business interest in or receive 
        remuneration from specific sales of agricultural commodities or 
        products.

``SEC. 702. FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM.

    ``(a) In General.--The Secretary shall establish and, in 
cooperation with eligible trade organizations, carry out a foreign 
market development cooperator program to maintain and develop foreign 
markets for United States agricultural commodities and products.
    ``(b) Administration.--Funds made available to carry out this title 
shall be used only to provide--
            ``(1) cost-share assistance to an eligible trade 
        organization under a contract or agreement with the 
        organization; and
            ``(2) assistance for other costs that are necessary or 
        appropriate to carry out the foreign market development 
        cooperator program, including contingent liabilities that are 
        not otherwise funded.

``SEC. 703. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this title 
such sums as may be necessary for each of fiscal years 1996 through 
2002.''.

SEC. 274. PRICE SUPPORT FOR RICE.

    Section 101 of the Agricultural Act of 1949 is amended by adding a 
subsection (e) that reads as follows:
    ``(e) Rice.--The Secretary shall make available to producers of 
each crop of rice on a farm price support at a level that is not less 
than 50%, or more than 90% of the parity price for rice as the 
Secretary determines will not result in increasing stocks of rice to 
the Commodity Credit Corporation.''.

                        TITLE III--CONSERVATION

                        Subtitle A--Definitions

SEC. 301. DEFINITIONS.

    Section 1201(a) of the Food Security Act of 1985 (16 U.S.C. 
3801(a)) is amended--
            (1) by redesignating paragraphs (3) through (16) as 
        paragraphs (4) through (17), respectively; and
            (2) by inserting after paragraph (2) the following:
            ``(3) Conservation system.--The term `conservation system' 
        means the conservation measures and practices that are approved 
        for application by a producer to a highly erodible field and 
        that provide for cost effective and practical erosion reduction 
        on the field based on local resource conditions and standards 
        contained in the Natural Resources Conservation Service field 
        office technical guide.''.

     Subtitle B--Environmental Conservation Acreage Reserve Program

SEC. 311. ENVIRONMENTAL CONSERVATION ACREAGE RESERVE PROGRAM.

    Section 1230 of the Food Security Act of 1985 (16 U.S.C. 3830) is 
amended to read as follows:

``SEC. 1230. ENVIRONMENTAL CONSERVATION ACREAGE RESERVE PROGRAM.

    ``(a) Establishment.--
            ``(1) In general.--During the 1996 through 2002 calendar 
        years, the Secretary shall establish an environmental 
        conservation acreage reserve program (referred to in this 
        section as `ECARP') to be implemented through contracts and the 
        acquisition of easements to assist owners and operators of 
        farms and ranches to conserve and enhance soil, water, and 
        related natural resources, including grazing land, wetland, and 
        wildlife habitat.
            ``(2) Means.--The Secretary shall carry out the ECARP by--
                    ``(A) providing for the long-term protection of 
                environmentally sensitive land; and
                    ``(B) providing technical and financial assistance 
                to farmers and ranchers to--
                            ``(i) improve the management and operation 
                        of the farms and ranches; and
                            ``(ii) reconcile productivity and 
                        profitability with protection and enhancement 
                        of the environment.
            ``(3) Programs.--The ECARP shall consist of--
                    ``(A) the conservation reserve program established 
                under subchapter B;
                    ``(B) the wetlands reserve program established 
                under subchapter C;
                    ``(C) the environmental quality incentives program 
                established under chapter 4; and
                    ``(D) a farmland protection program under which the 
                Secretary shall use funds of the Commodity Credit 
                Corporation for the purchase of conservation easements 
                or other interests in not less than 170,000, nor more 
                than 340,000, acres of land with prime, unique, or 
                other productive soil that is subject to a pending 
                offer from a State or local government for the purpose 
                of protecting topsoil by limiting nonagricultural uses 
                of the land, except that any highly erodible cropland 
                shall be subject to the requirements of a conservation 
                plan, including, if required by the Secretary, the 
                conversion of the land to less intensive uses. In no 
                case shall total expenditures of funding from the 
                Commodity Credit Corporation exceed a total of 
                $35,000,000 over the first 3 and subsequent fiscal 
                years.
    ``(b) Administration.--
            ``(1) In general.--In carrying out the ECARP, the Secretary 
        shall enter into contracts with owners and operators and 
        acquire interests in land through easements from owners, as 
        provided in this chapter and chapter 4.
            ``(2) Prior enrollments.--Acreage enrolled in the 
        conservation reserve or wetlands reserve program prior to the 
        effective date of this paragraph shall be considered to be 
        placed into the ECARP.
    ``(c) Conservation Priority Areas.--
            ``(1) Designation.--
                    ``(A) In general.--The Secretary shall designate 
                watersheds or regions of special environmental 
                sensitivity, including the Chesapeake Bay Region 
                (consisting of Pennsylvania, Maryland, and Virginia), 
                the Great Lakes Region, the Rainwater Basin Region, the 
                Lake Champlain Basin, the Prairie Pothole Region, and 
                the Long Island Sound Region, as conservation priority 
                areas that are eligible for enhanced assistance through 
                the programs established under this chapter and chapter 
                4.
                    ``(B) Application.--A designation shall be made 
                under this paragraph if agricultural practices on land 
                within the watershed or region pose a significant 
                threat to soil, water, and related natural resources, 
                as determined by the Secretary, and an application is 
                made by--
                            ``(i) a State agency in consultation with 
                        the State technical committee established under 
                        section 1261; or
                            ``(ii) State agencies from several States 
                        that agree to form an interstate conservation 
                        priority area.
                    ``(C) Assistance.--The Secretary shall designate a 
                watershed or region of special environmental 
                sensitivity as a conservation priority area to assist, 
                to the maximum extent practicable, agricultural 
                producers within the watershed or region to comply with 
                nonpoint source pollution requirements under the 
                Federal Water Pollution Control Act (33 U.S.C. 1251 et 
                seq.) and other Federal and State environmental laws.
            ``(2) Applicability.--The Secretary shall designate a 
        watershed or region of special environmental sensitivity as a 
        conservation priority area in a manner that conforms, to the 
        maximum extent practicable, to the functions and purposes of 
        the conservation reserve, wetlands reserve, and environmental 
        quality incentives programs, as applicable, if participation in 
        the program or programs is likely to result in the resolution 
        or amelioration of significant soil, water, and related natural 
        resource problems related to agricultural production activities 
        within the watershed or region.
            ``(3) Termination.--A conservation priority area 
        designation shall terminate on the date that is 5 years after 
        the date of the designation, except that the Secretary may--
                    ``(A) redesignate the area as a conservation 
                priority area; or
                    ``(B) withdraw the designation of a watershed or 
                region if the Secretary determines the area is no 
                longer affected by significant soil,water, and related 
                natural resource impacts related to agricultural 
                production activities.''.

SEC. 312. CONSERVATION RESERVE PROGRAM.

    (a) In General.--Section 1231 of the Food Security Act of 1985 (16 
U.S.C. 3831) is amended--
            (1) by striking ``1995'' each place it appears and 
        inserting ``2002''; and
            (2) in subsection (d), by striking ``38,000,000'' and 
        inserting ``36,520,000''.
    (b) Duties of Owners and Operators.--Section 1232(c) of the Food 
Security Act of 1985 (16 U.S.C. 3832(c)) is amended by striking 
``1995'' and inserting ``2002''.
    (c) Relationship to Other Law.--The authority granted to the 
Secretary of Agriculture as a result of the amendments made by this 
section shall supersede any restriction on the operation of the 
conservation reserve program established under any other provision of 
law.

SEC. 313. WETLANDS RESERVE PROGRAM.

    (a) Purposes.--Section 1237(a) of the Food Security Act of 1985 (16 
U.S.C. 3837(a)) is amended by striking ``to assist owners of eligible 
lands in restoring and protecting wetlands'' and inserting ``to protect 
wetlands for purposes of enhancing water quality and providing wildlife 
benefits while recognizing landowner rights''.
    (b) Enrollment.--Section 1237 of the Food Security Act of 1985 (16 
U.S.C. 3837) is amended by striking subsection (b) and inserting the 
following:
    ``(b) Minimum Enrollment.--The Secretary shall enroll into the 
wetlands reserve program--
            ``(1) during the 1996 through 2002 calendar years, a total 
        of not more than 975,000 acres; and
            ``(2) beginning with offers accepted by the Secretary 
        during calendar year 1997, to the maximum extent practicable, 
        \1/3\ of the acres in permanent easements, \1/3\ of the acres 
        in 30-year easements, and \1/3\ of the acres in restoration 
        cost-share agreements.''.
    (c) Eligibility.--Section 1237(c) of the Food Security Act of 1985 
(16 U.S.C. 3837(c)) is amended--
            (1) by striking ``2000'' and inserting ``2002''; and
            (2) by inserting ``the land maximizes wildlife benefits and 
        wetland values and functions and'' after ``determines that''.
    (d) Other Eligible Lands.--Section 1237(d) (16 U.S.C. 3837(d)) is 
amended by inserting after ``subsection (c)'' the following ``, land 
that maximizes wildlife benefits and that is''.
    (e) Easements.--Section 1237A of the Food Security Act of 1985 (16 
U.S.C. 3837a) is amended--
            (1) in the section heading, by inserting before the period 
        at the end the following: ``and agreements'';
            (2) by striking subsection (c) and inserting the following:
    ``(c) Restoration Plans.--The development of a restoration plan, 
including any compatible use, under this section shall be made through 
the local Natural Resources Conservation Service representative, in 
consultation with the State technical committee.'';
            (3) in subsection (f), by striking the third sentence and 
        inserting the following: ``Compensation may be provided in not 
        less than 5, nor more than 30, annual payments of equal or 
        unequal size, as agreed to by the owner and the Secretary.''; 
        and
            (4) by adding at the end the following:
    ``(h) Cost Share Agreements.--The Secretary may enroll land into 
the wetland reserve through agreements that require the landowner to 
restore wetlands on the land, if the agreement does not provide the 
Secretary with an easement.''.
    (f) Cost Share and Technical Assistance.--Section 1237C of the Food 
Security Act of 1985 (16 U.S.C. 3837c) is amended by striking 
subsection (b) and inserting the following:
    ``(b) Cost Share and Technical Assistance.--In the case of an 
easement entered into during the 1996 through 2002 calendar years, in 
making cost share payments under subsection (a)(1), the Secretary 
shall--
            ``(1) in the case of a permanent easement, pay the owner an 
        amount that is not less than 75 percent, but not more than 100 
        percent, of the eligible costs;
            ``(2) in the case of a 30-year easement or a cost-share 
        agreement, pay the owner an amount that is not less than 50 
        percent, but not more than 75 percent, of the eligible costs; 
        and
            ``(3) provide owners technical assistance to assist 
        landowners in complying with the terms of easements and 
        agreements.''.

SEC. 314. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM.

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

         ``CHAPTER 4--ENVIRONMENTAL QUALITY INCENTIVES PROGRAM

``SEC. 1238. FINDINGS AND PURPOSES.

    ``(a) Findings.--Congress finds that--
            ``(1) farmers and ranchers cumulatively manage more than 
        \1/2\ of the private lands in the continental United States;
            ``(2) because of the predominance of agriculture, the soil, 
        water, and related natural resources of the United States 
        cannot be protected without cooperative relationships between 
        the Federal Government and farmers and ranchers;
            ``(3) farmers and ranchers have made tremendous progress in 
        protecting the environment and the agricultural resource base 
        of the United States over the past decade because of not only 
        Federal Government programs but also their spirit of 
        stewardship and the adoption of effective technologies;
            ``(4) it is in the interest of the entire United States 
        that farmers and ranchers continue to strive to preserve soil 
        resources and make more efforts to protect water quality and 
        wildlife habitat, and address other broad environmental 
        concerns;
            ``(5) environmental strategies that stress the prudent 
        management of resources, as opposed to idling land, will permit 
        the maximum economic opportunities for farmers and ranchers in 
        the future;
            ``(6) unnecessary bureaucratic and paperwork barriers 
        associated with existing agricultural conservation assistance 
        programs decrease the potential effectiveness of the programs; 
        and
            ``(7) the recent trend of Federal spending on agricultural 
        conservation programs suggests that assistance to farmers and 
        ranchers in future years will, absent changes in policy, 
        dwindle to perilously low levels.
    ``(b) Purposes.--The purposes of the environmental quality 
incentives program established by this chapter are to--
            ``(1) combine into a single program the functions of--
                    ``(A) the agricultural conservation program 
                authorized by sections 7 and 8 of the Soil Conservation 
                and Domestic Allotment Act (16 U.S.C. 590g and 590h) 
                (as in effect before the amendments made by section 
                355(a)(1) of the Agricultural Reform and Improvement 
                Act of 1996);
                    ``(B) the Great Plains conservation program 
                established under section 16(b) of the Soil 
                Conservation and Domestic Allotment Act (16 U.S.C. 
                590p(b)) (as in effect before the amendment made by 
                section 355(b)(1) of the Agricultural Reform and 
                Improvement Act of 1996); and
                    ``(C) the water quality incentives program 
                established under chapter 2 (as in effect before the 
                amendment made by section 355(k) of the Agricultural 
                Reform and Improvement Act of 1996); and
                    ``(C) the Colorado River Basin salinity control 
                program established under section 202(c) of the 
                Colorado River Basin Salinity Control Act (43 U.S.C. 
                1592(c)) (as in effect before the amendment made by 
                section 355(c)(1) of the Agricultural Reform and 
                Improvement Act of 1996); and
            ``(2) carry out the single program in a manner that 
        maximizes environmental benefits per dollar expended, and that 
        provides--
                    ``(A) flexible technical and financial assistance 
                to farmers and ranchers that face the most serious 
                threats to soil, water, and related natural resources, 
                including grazing lands, wetlands, and wildlife 
                habitat;
                    ``(B) assistance to farmers and ranchers in 
                complying with this title and Federal and State 
                environmental laws, and to encourage environmental 
                enhancement;
                    ``(C) assistance to farmers and ranchers in making 
                beneficial, cost-effective changes to cropping systems, 
                grazing management, manure, nutrient, pest, or 
                irrigation management, land uses, or other measures 
                needed to conserve and improve soil, water, and related 
                natural resources; and
                    ``(D) for the consolidation and simplification of 
                the conservation planning process to reduce 
                administrative burdens on the owners and operators of 
                farms and ranches.

``SEC. 1238A. DEFINITIONS.

    ``In this chapter:
            ``(1) Land management practice.--The term `land management 
        practice' means nutrient or manure management, integrated pest 
        management, irrigation management, tillage or residue 
        management, grazing management, or another land management 
        practice the Secretary determines is needed to protect soil, 
        water, or related resources in the most cost effective manner.
            ``(2) Large confined livestock operation.--The term `large 
        confined livestock operation' means a farm or ranch that--
                    ``(A) is a confined animal feeding operation; and
                    ``(B) has more than--
                            ``(i) 700 mature dairy cattle;
                            ``(ii) 1,000 beef cattle;
                            ``(iii) 100,000 laying hens or broilers;
                            ``(iv) 55,000 turkeys;
                            ``(v) 2,500 swine; or
                            ``(vi) 10,000 sheep or lambs.
            ``(3) Livestock.--The term `livestock' means mature dairy 
        cows, beef cattle, laying hens, broilers, turkeys, swine, 
        sheep, or lambs.
            ``(4) Operator.--The term `operator' means a person who is 
        engaged in crop or livestock production (as defined by the 
        Secretary).
            ``(5) Structural practice.--The term `structural practice' 
        means the establishment of an animal waste management facility, 
        terrace, grassed waterway, contour grass strip, filterstrip, 
        permanent wildlife habitat, or another structural practice that 
        the Secretary determines is needed to protect soil, water, or 
        related resources in the most cost effective manner.

``SEC. 1238B. ESTABLISHMENT AND ADMINISTRATION OF ENVIRONMENTAL QUALITY 
              INCENTIVES PROGRAM.

    ``(a) Establishment.--
            ``(1) In general.--During the 1996 through 2002 fiscal 
        years, the Secretary shall provide technical assistance, cost-
        sharing payments, and incentive payments, education to 
        operators, who enter into contracts with the Secretary, through 
        an environmental quality incentives program in accordance with 
        this chapter.
            ``(2) Eligible practices.--
                    ``(A) Structural practices.--An operator who 
                implements a structural practice shall be eligible for 
                technical assistance or cost-sharing payments, 
                education or both.
                    ``(B) Land management practices.--An operator who 
                performs a land management practice shall be eligible 
                for technical assistance or incentive payments, 
                education or both.
    ``(b) Application and Term.--A contract between an operator and the 
Secretary under this chapter may--
            ``(1) apply to 1 or more structural practices or 1 or more 
        land management practices, or both; and
            ``(2) have a term of not less than 5, nor more than 10, 
        years, as determined appropriate by the Secretary, depending on 
        the practice or practices that are the basis of the contract.
    ``(c) Structural Practices.--
            ``(1) Competitive offer.--The Secretary shall administer a 
        competitive offer system for operators proposing to receive 
        cost-sharing payments in exchange for the implementation of 1 
        or more structural practices by the operator. The competitive 
        offer system shall consist of--
                    ``(A) the submission of a competitive offer by the 
                operator in such manner as the Secretary may prescribe; 
                and
                    ``(B) evaluation of the offer in light of the 
                priorities established in section 1238C and the 
                projected cost of the proposal, as determined by the 
                Secretary.
            ``(2) Concurrence of owner.--If the operator making an 
        offer to implement a structural practice is a tenant of the 
        land involved in agricultural production, for the offer to be 
        acceptable, the operator shall obtain the concurrence of the 
        owner of the land with respect to the offer.
    ``(d) Land Management Practices.--The Secretary shall establish an 
application and evaluation process for awarding technical assistance or 
incentive payments, or both, to an operator in exchange for the 
performance of 1 or more land management practices by the operator.
    ``(e) Cost-Sharing and Incentive Payments.--
            ``(1) Cost-sharing payments.--
                    ``(A) In general.--The Federal share of cost-
                sharing payments to an operator proposing to implement 
                1 or more structural practices shall not be more than 
                75 percent of the projected cost of the practice, as 
                determined by the Secretary, taking into consideration 
                any payment received by the operator from a State or 
                local government.
                    ``(B) Limitation.--An operator of a large confined 
                livestock operation shall not be eligible for cost-
                sharing payments to construct an animal waste 
                management facility.
                    ``(C) Other payments.--An operator shall not be 
                eligible for cost-sharing payments for structural 
                practices on eligible land under this chapter if the 
                operator receives cost-sharing payments or other 
                benefits for the same land under chapter 1 or 3.
            ``(2) Incentive payments.--The Secretary shall make 
        incentive payments in an amount and at a rate determined by the 
        Secretary to be necessary to encourage an operator to perform 1 
        or more land management practices.
    ``(f) Technical Assistance.--
            ``(1) Funding.--The Secretary shall allocate funding under 
        this chapter for the provision of technical assistance 
        according to the purpose and projected cost for which the 
        technical assistance is provided in a fiscal year. The 
        allocated amount may vary according to the type of expertise 
        required, quantity of time involved, and other factors as 
        determined appropriate by the Secretary. Funding shall not 
        exceed the projected cost to the Secretary of the technical 
        assistance provided in a fiscal year.
            ``(2) Other authorities.--The receipt of technical 
        assistance under this chapter shall not affect the eligibility 
        of the operator to receive technical assistance under other 
        authorities of law available to the Secretary.
    ``(g) Modification or Termination of Contracts.--
            ``(1) Voluntary modification or termination.--The Secretary 
        may modify or terminate a contract entered into with an 
        operator under this chapter if--
                    ``(A) the operator agrees to the modification or 
                termination; and
                    ``(B) the Secretary determines that the 
                modification or termination is in the public interest.
            ``(2) Involuntary termination.--The Secretary may terminate 
        a contract under this chapter if the Secretary determines that 
        the operator violated the contract.
    ``(h) Non-Federal Assistance.--
            ``(1) In general.--The Secretary may request the services 
        of a State water quality agency, State fish and wildlife 
        agency, State forestry agency, or any other governmental or 
        private resource considered appropriate to assist in providing 
        the technical assistance necessary for the development and 
        implementation of a structural practice or land management 
        practice.
            ``(2) Limitation on liability.--No person shall be 
        permitted to bring or pursue any claim or action against any 
        official or entity based on or resulting from any technical 
        assistance provided to an operator under this chapter to assist 
        in complying with a Federal or State environmental law.

``SEC. 1238C. EVALUATION OF OFFERS AND PAYMENTS.

    ``(a) Regional Priorities.--The Secretary shall provide technical 
assistance, cost-sharing payments, and incentive payments to operators 
in a region, watershed, or conservation priority area under this 
chapter based on the significance of the soil, water, and related 
natural resource problems in the region, watershed, or area, and the 
structural practices or land management practices that best address the 
problems, as determined by the Secretary.
    ``(b) Maximization of Environmental Benefits.--
            ``(1) In general.--In providing technical assistance, cost-
        sharing payments, and incentive payments to operators in 
        regions, watersheds, or conservation priority areas under this 
        chapter, the Secretary shall accord a higher priority to 
        assistance and payments that maximize environmental benefits 
        per dollar expended.
            ``(2) National and regional priority.--The prioritization 
        shall be done nationally as well as within the conservation 
        priority area, region, or watershed in which an agricultural 
        operation is located.
            ``(3) Criteria.--To carry out this subsection, the 
        Secretary shall establish criteria for implementing structural 
        practices and land management practices that best achieve 
        conservation goals for a region, watershed, or conservation 
        priority area, as determined by the Secretary.
    ``(c) State or Local Contributions.--The Secretary shall accord a 
higher priority to operators whose agricultural operations are located 
within watersheds, regions, or conservation priority areas in which 
State or local governments have provided, or will provide, financial or 
technical assistance to the operators for the same conservation or 
environmental purposes.
    ``(d) Priority Lands.--The Secretary shall accord a higher priority 
to structural practices or land management practices on lands on which 
agricultural production has been determined to contribute to, or 
create, the potential for failure to meet applicable water quality 
standards or other environmental objectives of a Federal or State law.

``SEC. 1238D. DUTIES OF OPERATORS.

    ``To receive technical assistance, cost-sharing payments, or 
incentives payments under this chapter, an operator shall agree--
            ``(1) to implement an environmental quality incentives 
        program plan that describes conservation and environmental 
        goals to be achieved through a structural practice or land 
        management practice, or both, that is approved by the 
        Secretary;
            ``(2) not to conduct any practices on the farm or ranch 
        that would tend to defeat the purposes of this chapter;
            ``(3) on the violation of a term or condition of the 
        contract at any time the operator has control of the land, to 
        refund any cost-sharing or incentive payment received with 
        interest, and forfeit any future payments under this chapter, 
        as determined by the Secretary;
            ``(4) on the transfer of the right and interest of the 
        operator in land subject to the contract, unless the transferee 
        of the right and interest agrees with the Secretary to assume 
        all obligations of the contract, to refund all cost-sharing 
        payments and incentive payments received under this chapter, as 
        determined by the Secretary;
            ``(5) to supply information as required by the Secretary to 
        determine compliance with the environmental quality incentives 
        program plan and requirements of the program; and
            ``(6) to comply with such additional provisions as the 
        Secretary determines are necessary to carry out the 
        environmental quality incentives program plan.

``SEC. 1238E. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM PLAN.

    ``An environmental quality incentives program plan shall include 
(as determined by the Secretary)--
            ``(1) a description of the prevailing farm or ranch 
        enterprises, cropping patterns, grazing management, cultural 
        practices, or other information that may be relevant to 
        conserving and enhancing soil, water, and related natural 
        resources;
            ``(2) a description of relevant farm or ranch resources, 
        including soil characteristics, rangeland types and condition, 
        proximity to water bodies, wildlife habitat, or other relevant 
        characteristics of the farm or ranch related to the 
        conservation and environmental objectives set forth in the 
        plan;
            ``(3) a description of specific conservation and 
        environmental objectives to be achieved;
            ``(4) to the extent practicable, specific, quantitative 
        goals for achieving the conservation and environmental 
        objectives;
            ``(5) a description of 1 or more structural practices or 1 
        or more land management practices, or both, to be implemented 
        to achieve the conservation and environmental objectives;
            ``(6) a description of the timing and sequence for 
        implementing the structural practices or land management 
        practices, or both, that will assist the operator in complying 
        with Federal and State environmental laws; and
            ``(7) information that will enable evaluation of the 
        effectiveness of the plan in achieving the conservation and 
        environmental objectives, and that will enable evaluation of 
        the degree to which the plan has been implemented.
            ``(8) Not withstanding any provision of law, the Secretary 
        shall ensure that the process of writing, developing, and 
        assisting in the implementation of plans required in the 
        programs established under this title be open to individuals in 
        agribusiness including but not limited to agricultural 
        producers, representatives from agricultural cooperatives, 
        agricultural input retail dealers, and certified crop advisers. 
        This process shall be included in but not limited to programs 
        and plans established under this title and any other Department 
        program using incentive, technical assistance, cost-share or 
        pilot project programs that require plans.

``SEC. 1238F. DUTIES OF THE SECRETARY.

    ``To the extent appropriate, the Secretary shall assist an operator 
in achieving the conservation and environmental goals of an 
environmental quality incentives program plan by--
            ``(1) providing an eligibility assessment of the farming or 
        ranching operation of the operator as a basis for developing 
        the plan;
            ``(2) providing technical assistance in developing and 
        implementing the plan;
            ``(3) providing technical assistance, cost-sharing 
        payments, or incentive payments for developing and implementing 
        1 or more structural practices or 1 or more land management 
        practices, as appropriate;
            ``(4) providing the operator with information, education, 
        and training to aid in implementation of the plan; and
            ``(5) encouraging the operator to obtain technical 
        assistance, cost-sharing payments, or grants from other 
        Federal, State, local, or private sources.

``SEC. 1238G. ELIGIBLE LANDS.

    ``Agricultural land on which a structural practice or land 
management practice, or both, shall be eligible for technical 
assistance, cost-sharing payments, or incentive payments under this 
chapter include--
            ``(1) agricultural land (including cropland, rangeland, 
        pasture, and other land on which crops or livestock are 
        produced) that the Secretary determines poses a serious threat 
        to soil, water, or related resources by reason of the soil 
        types, terrain, climatic, soil, topographic, flood, or saline 
        characteristics, or other factors or natural hazards;
            ``(2) an area that is considered to be critical 
        agricultural land on which either crop or livestock production 
        is carried out, as identified in a plan submitted by the State 
        under section 319 of the Federal Water Pollution Control Act 
        (33 U.S.C. 1329) as having priority problems that result from 
        an agricultural nonpoint source of pollution;
            ``(3) an area recommended by a State lead agency for 
        protection of soil, water, and related resources, as designated 
        by a Governor of a State; and
            ``(4) land that is not located within a designated or 
        approved area, but that if permitted to continue to be operated 
        under existing management practices, would defeat the purpose 
        of the environmental quality incentives program, as determined 
        by the Secretary.

``SEC. 1238H. LIMITATIONS ON PAYMENTS.

    ``(a) Payments.--The total amount of cost-sharing and incentive 
payments paid to a person under this chapter may not exceed--
            ``(1) $10,000 for any fiscal year; or
            ``(2) $50,000 for any multiyear contract.
    ``(b) Regulations.--The Secretary shall issue regulations that are 
consistent with section 1001 for the purpose of--
            ``(1) defining the term `person' as used in subsection (a); 
        and
            ``(2) prescribing such rules as the Secretary determines 
        necessary to ensure a fair and reasonable application of the 
        limitations contained in subsection (a).''.

                    Subtitle C--Conservation Funding

SEC. 321. CONSERVATION FUNDING.

    (a) In General.--Subtitle E of title XII of the Food Security Act 
of 1985 (16 U.S.C. 3841 et seq.) is amended to read as follows:

                         ``Subtitle E--Funding

``SEC. 1241. FUNDING.

    ``(a) Mandatory Expenses.--For each of fiscal years 1996 through 
2002, the Secretary shall use the funds of the Commodity Credit 
Corporation to carry out the programs authorized by--
            ``(1) subchapter B of chapter 1 of subtitle D (including 
        contracts extended by the Secretary pursuant to section 1437 of 
        the Food, Agriculture, Conservation, and Trade Act of 1990 
        (Public Law 101-624; 16 U.S.C. 3831 note));
            ``(2) subchapter C of chapter 1 of subtitle D; and
            ``(3) chapter 4 of subtitle D.
    ``(b) Environmental Quality Incentives Program.--
            ``(1) In general.--For each of fiscal years 1996 through 
        2002, $200,000,000 of the funds of the Commodity Credit 
        Corporation shall be available for providing technical 
        assistance, cost-sharing payments, and incentive payments under 
        the environmental quality incentives program under chapter 4 of 
        subtitle D.
            ``(2) Livestock production.--For each of fiscal years 1996 
        through 2002, 50 percent of the funding available for technical 
        assistance, cost-sharing payments, and incentive payments under 
        the environmental quality incentives program shall be targeted 
        at practices relating to livestock production.
    ``(c) Advance Appropriations to CCC.--The Secretary may use the 
funds of the Commodity Credit Corporation to carry out chapter 3 of 
subtitle D, except that the Secretary may not use the funds of the 
Corporation unless the Corporation has received funds to cover the 
expenditures from appropriations made available to carry out chapter 3 
of subtitle D.

``SEC. 1242. ADMINISTRATION.

    ``(a) Plans.--The Secretary shall, to the extent practicable, avoid 
duplication in--
            ``(1) the conservation plans required for--
                    ``(A) highly erodible land conservation under 
                subtitle B;
                    ``(B) the conservation reserve program established 
                under subchapter B of chapter 1 of subtitle D; and
                    ``(C) the wetlands reserve program established 
                under subchapter C of chapter 1 of subtitle D; and
            ``(2) the environmental quality incentives program 
        established under chapter 4 of subtitle D.
    ``(b) Acreage Limitation.--
            ``(1) In general.--The Secretary shall not enroll more than 
        25 percent of the cropland in any county in the programs 
        administered under the conservation reserve and wetlands 
        reserve programs established under subchapters B and C, 
        respectively, of chapter 1 of subtitle D. Not more than 10 
        percent of the cropland in a county may be subject to an 
        easement acquired under the subchapters.
            ``(2) Exception.--The Secretary may exceed the limitations 
        in paragraph (1) if the Secretary determines that--
                    ``(A) the action would not adversely affect the 
                local economy of a county; and
                    ``(B) operators in the county are having 
                difficulties complying with conservation plans 
                implemented under section 1212.
            ``(3) Shelterbelts and windbreaks.--The limitations 
        established under this subsection shall not apply to cropland 
        that is subject to an easement under chapter 1 or 3 of subtitle 
        D that is used for the establishment of shelterbelts and 
        windbreaks.
    ``(c) Tenant Protection.--Except for a person who is a tenant on 
land that is subject to a conservation reserve contract that has been 
extended by the Secretary, the Secretary shall provide adequate 
safeguards to protect the interests of tenants and sharecroppers, 
including provision for sharing, on a fair and equitable basis, in 
payments under the programs established under subtitles B through D.
    ``(d) Regulations.--Not later than 90 days after the effective date 
of this subsection, the Secretary shall issue regulations to implement 
the conservation reserve and wetlands reserve programs established 
under chapter 1 of subtitle D.''.

     Subtitle D--National Natural Resources Conservation Foundation

SEC. 331. SHORT TITLE.

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

SEC. 332. DEFINITIONS.

    In this subtitle (unless the context otherwise requires):
            (1) Board.--The term ``Board'' means the Board of Trustees 
        established under section 334.
            (2) Department.--The term ``Department'' means the United 
        States Department of Agriculture.
            (3) Foundation.--The term ``Foundation'' means the National 
        Natural Resources Conservation Foundation established by 
        section 333(a).
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.

SEC. 333. NATIONAL NATURAL RESOURCES CONSERVATION FOUNDATION.

    (a) Establishment.--A National Natural Resources Conservation 
Foundation is established as a charitable and nonprofit corporation for 
charitable, scientific, and educational purposes specified in 
subsection (b). The Foundation is not an agency or instrumentality of 
the United States.
    (b) Purposes.--The purposes of the Foundation are to--
            (1) promote innovative solutions to the problems associated 
        with the conservation of natural resources on private lands, 
        particularly with respect to agriculture and soil and water 
        conservation;
            (2) promote voluntary partnerships between government and 
        private interests in the conservation of natural resources;
            (3) conduct research and undertake educational activities, 
        conduct and support demonstration projects, and make grants to 
        State and local agencies and nonprofit organizations;
            (4) provide such other leadership and support as may be 
        necessary to address conservation challenges, such as the 
        prevention of excessive soil erosion, enhancement of soil and 
        water quality, and the protection of wetlands, wildlife 
        habitat, and strategically important farmland subject to urban 
        conversion and fragmentation;
            (5) encourage, accept, and administer private gifts of 
        money and real and personal property for the benefit of, or in 
        connection with, the conservation and related activities and 
        services of the Department, particularly the Natural Resources 
        Conservation Service;
            (6) undertake, conduct, and encourage educational, 
        technical, and other assistance, and other activities, that 
        support the conservation and related programs administered by 
        the Department (other than activities carried out on National 
        Forest System lands), particularly the Natural Resources 
        Conservation Service, except that the Foundation may not 
        enforce or administer a regulation of the Department; and
            (7) raise private funds to promote the purposes of the 
        Foundation.
    (c) Limitations and Conflicts of Interests.--
            (1) Political activities.--The Foundation shall not 
        participate or intervene in a political campaign on behalf of 
        any candidate for public office.
            (2) Conflicts of interest.--No director, officer, or 
        employee of the Foundation shall participate, directly or 
        indirectly, in the consideration or determination of any 
        question before the Foundation affecting--
                    (A) the financial interests of the director, 
                officer, or employee; or
                    (B) the interests of any corporation, partnership, 
                entity, organization, or other person in which the 
                director, officer, or employee--
                            (i) is an officer, director, or trustee; or
                            (ii) has any direct or indirect financial 
                        interest.
            (3) Legislation or government action or policy.--No funds 
        of the Foundation may be used in any manner for the purpose of 
        influencing legislation or government action or policy.
            (4) Litigation.--No funds of the Foundation may be used to 
        bring or join an action against the United States or any State.

SEC. 334. COMPOSITION AND OPERATION.

    (a) Composition.--The Foundation shall be administered by a Board 
of Trustees that shall consist of 9 voting members, each of whom shall 
be a United States citizen and not a Federal officer. The Board shall 
be composed of--
            (1) individuals with expertise in agricultural conservation 
        policy matters;
            (2) a representative of private sector organizations with a 
        demonstrable interest in natural resources conservation;
            (3) a representative of statewide conservation 
        organizations;
            (4) a representative of soil and water conservation 
        districts;
            (5) a representative of organizations outside the Federal 
        Government that are dedicated to natural resources conservation 
        education; and
            (6) a farmer or rancher.
    (b) Nongovernmental Employees.--Service as a member of the Board 
shall not constitute employment by, or the holding of, an office of the 
United States for the purposes of any Federal law.
    (c) Membership.--
            (1) Initial members.--The Secretary shall appoint 9 persons 
        who meet the criteria established under subsection (a) as the 
        initial members of the Board and designate 1 of the members as 
        the initial chairperson for a 2-year term.
            (2) Terms of office.--
                    (A) In general.--A member of the Board shall serve 
                for a term of 3 years, except that the members 
                appointed to the initial Board shall serve, 
                proportionately, for terms of 1, 2, and 3 years, as 
                determined by the Secretary.
                    (B) Limitation on terms.--No individual may serve 
                more than 2 consecutive 3-year terms as a member.
            (3) Subsequent members.--The initial members of the Board 
        shall adopt procedures in the constitution of the Foundation 
        for the nomination and selection of subsequent members of the 
        Board. The procedures shall require that each member, at a 
        minimum, meets the criteria established under subsection (a) 
        and shall provide for the selection of an individual, who is 
        not a Federal officer or a member of the Board.
    (d) Chairperson.--After the appointment of an initial chairperson 
under subsection (c)(1), each succeeding chairperson of the Board shall 
be elected by the members of the Board for a 2-year term.
    (e) Vacancies.--A vacancy on the Board shall be filled by the Board 
not later than 60 days after the occurrence of the vacancy.
    (f) Compensation.--A member of the Board shall receive no 
compensation from the Foundation for the service of the member on the 
Board.
    (g) Travel Expenses.--While away from the home or regular place of 
business of a member of the Board in the performance of services for 
the Board, the member shall be allowed travel expenses paid by the 
Foundation, including per diem in lieu of subsistence, at the same rate 
as a person employed intermittently in the Government service would be 
allowed under section 5703 of title 5, United States Code.

SEC. 335. OFFICERS AND EMPLOYEES.

    (a) In General.--The Board may--
            (1) appoint, hire, and discharge the officers and employees 
        of the Foundation, other than the appointment of the initial 
        Executive Director of the Foundation;
            (2) adopt a constitution and bylaws for the Foundation that 
        are consistent with the purposes of the Foundation and this 
        subtitle; and
            (3) undertake any other activities that may be necessary to 
        carry out this subtitle.
    (b) Officers and Employees.--
            (1) Appointment and hiring.--An officer or employee of the 
        Foundation--
                    (A) shall not, by virtue of the appointment or 
                employment of the officer or employee, be considered a 
                Federal employee for any purpose, including the 
                provisions of title 5, United States Code, governing 
                appointments in the competitive service, except that 
                such an individual may participate in the Federal 
                employee retirement system as if the individual were a 
                Federal employee; and
                    (B) may not be paid by the Foundation a salary in 
                excess of $125,000 per year.
            (2) Executive director.--
                    (A) Initial director.--The Secretary shall appoint 
                an individual to serve as the initial Executive 
                Director of the Foundation who shall serve, at the 
                direction of the Board, as the chief operating officer 
                of the Foundation.
                    (B) Subsequent directors.--The Board shall appoint 
                each subsequent Executive Director of the Foundation 
                who shall serve, at the direction of the Board, as the 
                chief operating officer of the Foundation.
                    (C) Qualifications.--The Executive Director shall 
                be knowledgeable and experienced in matters relating to 
                natural resources conservation.

SEC. 336. CORPORATE POWERS AND OBLIGATIONS OF THE FOUNDATION.

    (a) In General.--The Foundation--
            (1) may conduct business throughout the United States and 
        the territories and possessions of the United States; and
            (2) shall at all times maintain a designated agent who is 
        authorized to accept service of process for the Foundation, so 
        that the serving of notice to, or service of process on, the 
        agent, or mailed to the business address of the agent, shall be 
        considered as service on or notice to the Foundation.
    (b) Seal.--The Foundation shall have an official seal selected by 
the Board that shall be judicially noticed.
    (c) Powers.--To carry out the purposes of the Foundation under 
section 333(b), the Foundation shall have, in addition to the powers 
otherwise provided under this subtitle, the usual powers of a 
corporation, including the power--
            (1) to accept, receive, solicit, hold, administer, and use 
        any gift, devise, or bequest, either absolutely or in trust, of 
        real or personal property or any income from, or other interest 
        in, the gift, devise, or bequest;
            (2) to acquire by purchase or exchange any real or personal 
        property or interest in property, except that funds provided 
        under section 310 may not be used to purchase an interest in 
        real property;
            (3) unless otherwise required by instrument of transfer, to 
        sell, donate, lease, invest, reinvest, retain, or otherwise 
        dispose of any property or income from property;
            (4) to borrow money from private sources and issue bonds, 
        debentures, or other debt instruments, subject to section 339, 
        except that the aggregate amount of the borrowing and debt 
        instruments outstanding at any time may not exceed $1,000,000;
            (5) to sue and be sued, and complain and defend itself, in 
        any court of competent jurisdiction, except that a member of 
        the Board shall not be personally liable for an action in the 
        performance of services for the Board, except for gross 
        negligence;
            (6) to enter into a contract or other agreement with an 
        agency of State or local government, educational institution, 
        or other private organization or person and to make such 
        payments as may be necessary to carry out the functions of the 
        Foundation; and
            (7) to do any and all acts that are necessary to carry out 
        the purposes of the Foundation.
    (d) Interest in Property.--
            (1) In general.--The Foundation may acquire, hold, and 
        dispose of lands, waters, or other interests in real property 
        by donation, gift, devise, purchase, or exchange.
            (2) Interests in real property.--For purposes of this 
        subtitle, an interest in real property shall be treated, among 
        other things, as including an easement or other right for the 
        preservation, conservation, protection, or enhancement of 
        agricultural, natural, scenic, historic, scientific, 
        educational, inspirational, or recreational resources.
            (3) Gifts.--A gift, devise, or bequest may be accepted by 
        the Foundation even though the gift, devise, or bequest is 
        encumbered, restricted, or subject to a beneficial interest of 
        a private person if any current or future interest in the gift, 
        devise, or bequest is for the benefit of the Foundation.

SEC. 337. ADMINISTRATIVE SERVICES AND SUPPORT.

    For each of fiscal years 1996 through 1998, the Secretary may 
provide, without reimbursement, personnel, facilities, and other 
administrative services of the Department to the Foundation.

SEC. 338. AUDITS AND PETITION OF ATTORNEY GENERAL FOR EQUITABLE RELIEF.

    (a) Audits.--
            (1) In general.--The accounts of the Foundation shall be 
        audited in accordance with Public Law 88-504 (36 U.S.C. 1101 et 
        seq.), including an audit of lobbying and litigation activities 
        carried out by the Foundation.
            (2) Conforming amendment.--The first section of Public Law 
        88-504 (36 U.S.C. 1101) is amended by adding at the end the 
        following:
            ``(77) The National Natural Resources Conservation 
        Foundation.''.
    (b) Relief with Respect to Certain Foundation Acts or Failure to 
Act.--The Attorney General may petition in the United States District 
Court for the District of Columbia for such equitable relief as may be 
necessary or appropriate, if the Foundation--
            (1) engages in, or threatens to engage in, any act, 
        practice, or policy that is inconsistent with this subtitle; or
            (2) refuses, fails, neglects, or threatens to refuse, fail, 
        or neglect, to discharge the obligations of the Foundation 
        under this subtitle.

SEC. 339. RELEASE FROM LIABILITY.

    (a) In General.--The United States shall not be liable for any 
debt, default, act, or omission of the Foundation. The full faith and 
credit of the United States shall not extend to the Foundation.
    (b) Statement.--An obligation issued by the Foundation, and a 
document offering an obligation, shall include a prominent statement 
that the obligation is not directly or indirectly guaranteed, in whole 
or in part, by the United States (or an agency or instrumentality of 
the United States).

SEC. 340. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Department to be 
made available to the Foundation $1,000,000 for each of fiscal years 
1997 through 1999 to initially establish and carry out activities of 
the Foundation.

                       Subtitle E--Miscellaneous

SEC. 351. FLOOD RISK REDUCTION.

    (a) In General.--During fiscal years 1996 through 2002, the 
Secretary of Agriculture (referred to in this section as the 
``Secretary'') may enter into a contract with contract acreage under 
title I on a farm with land that is frequently flooded.
    (b) Duties of Producers.--Under the terms of the contract, with 
respect to acres that are subject to the contract, the producer must 
agree to--
            (1) the termination of any contract acreage;
            (2) forgo loans for contract commodities, oilseeds, and 
        extra long staple cotton;
            (3) not apply for crop insurance issued or reinsured by the 
        Secretary;
            (4) comply with applicable wetlands and high erodible land 
        conservation compliance requirements established under title 
        XII of the Food Security Act of 1985 (16 U.S.C. 3801 et seq.);
            (5) not apply for any conservation program payments from 
        the Secretary;
            (6) not apply for disaster program benefits provided by the 
        Secretary; and
            (7) refund the payments, with interest, issued under the 
        flood risk reduction contract to the Secretary, if the producer 
        violates the terms of the contract or if the producer transfers 
        the property to another person who violates the contract.
    (c) Duties of Secretary.--In return for a flood risk reduction 
contract entered into by a producer under this section, the Secretary 
shall agree to pay the producer for the 1996 through 2002 crops not 
more than 95 percent of the projected contract payments under title I, 
and not more than 95 percent of the projected payments and subsidies 
from the Federal Crop Insurance Corporation.
    (d) Commodity Credit Corporation.--The Secretary shall carry out 
the program authorized by this section through the Commodity Credit 
Corporation.

SEC. 352. FORESTRY.

    (a) Forestry Incentives Program.--Section 4 of the Cooperative 
Forestry Assistance Act of 1978 (16 U.S.C. 2103) is amended by striking 
subsection (k).
    (b) Office of International Forestry.--Section 2405 of the Food, 
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 6704) is 
amended by adding at the end the following:
    ``(d) Authorization of Appropriations.--There are authorized each 
fiscal year such sums as are necessary to carry out this section.''.

SEC. 353. STATE TECHNICAL COMMITTEES.

    Section 1261(c) of the Food Security Act of 1985 (16 U.S.C. 
3861(c)) is amended--
            (1) in paragraph (7), by striking ``and'' at the end;
            (2) in paragraph (8), by striking the period at the end and 
        inserting a semicolon; and
            (3) by adding at the end the following:
            ``(9) agricultural producers;
            ``(10) other nonprofit organizations with demonstrable 
        expertise;
            ``(11) persons knowledgeable about the economic and 
        environmental impact of conservation techniques and programs; 
        and
            ``(12) agribusiness.

SEC. 354. CONSERVATION OF PRIVATE GRAZING LAND.

    (a) Findings.--Congress finds that--
            (1) privately owned grazing land constitutes nearly \1/2\ 
        of the non-Federal land of the United States and is basic to 
        the environmental, social, and economic stability of rural 
        communities;
            (2) privately owned grazing land contains a complex set of 
        interactions among soil, water, air, plants, and animals;
            (3) grazing land constitutes the single largest watershed 
        cover type in the United States and contributes significantly 
        to the quality and quantity of water available for all of the 
        many uses of the land;
            (4) private grazing land constitutes the most extensive 
        wildlife habitat in the United States;
            (5) private grazing land can provide opportunities for 
        improved nutrient management from land application of animal 
        manures and other by-product nutrient resources;
            (6) owners and managers of private grazing land need to 
        continue to recognize conservation problems when the problems 
        arise and receive sound technical assistance to improve or 
        conserve grazing land resources to meet ecological and economic 
        demands;
            (7) new science and technology must continually be made 
        available in a practical manner so owners and managers of 
        private grazing land may make informed decisions concerning 
        vital grazing land resources;
            (8) agencies of the Department of Agriculture with private 
        grazing land responsibilities are the agencies that have the 
        expertise and experience to provide technical assistance, 
        education, and research to owners and managers of private 
        grazing land for the long-term productivity and ecological 
        health of grazing land;
            (9) although competing demands on private grazing land 
        resources are greater than ever before, assistance to private 
        owners and managers of private grazing land is currently 
        limited and does not meet the demand and basic need for 
        adequately sustaining or enhancing the private grazing lands 
        resources; and
            (10) privately owned grazing land can be enhanced to 
        provide many benefits to all Americans through voluntary 
        cooperation among owners and managers of the land, local 
        conservation districts, and the agencies of the Department of 
        Agriculture responsible for providing assistance to owners and 
        managers of land and to conservation districts.
    (b) Purpose.--It is the purpose of this section to authorize the 
Secretary of Agriculture to provide a coordinated technical, 
educational, and related assistance program to conserve and enhance 
private grazing land resources and provide related benefits to all 
citizens of the United States by--
            (1) establishing a coordinated and cooperative Federal, 
        State, and local grazing conservation program for management of 
        private grazing land;
            (2) strengthening technical, educational, and related 
        assistance programs that provide assistance to owners and 
        managers of private grazing land;
            (3) conserving and improving wildlife habitat on private 
        grazing land;
            (4) conserving and improving fish habitat and aquatic 
        systems through grazing land conservation treatment;
            (5) protecting and improving water quality;
            (6) improving the dependability and consistency of water 
        supplies;
            (7) identifying and managing weed, noxious weed, and brush 
        encroachment problems on private grazing land; and
            (8) integrating conservation planning and management 
        decisions by owners and managers of private grazing land, on a 
        voluntary basis.
    (c) Definitions.--In this section:
            (1) Private grazing land.--The term ``private grazing 
        land'' means privately owned, State-owned, tribally-owned, and 
        any other non-federally owned rangeland, pastureland, grazed 
        forest land, and hay land.
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture, acting through the Natural Resources 
        Conservation Service.
    (d) Private Grazing Land Conservation Assistance.--
            (1) Assistance to grazing landowners and others.--Subject 
        to the availability of appropriations, the Secretary shall 
        establish a voluntary program to provide technical, 
        educational, and related assistance to owners and managers of 
        private grazing land and public agencies, through local 
        conservation districts, to enable the landowners, managers, and 
        public agencies to voluntarily carry out activities that are 
        consistent with this section, including--
                    (A) maintaining and improving private grazing land 
                and the multiple values and uses that depend on private 
                grazing land;
                    (B) implementing grazing land management 
                technologies;
                    (C) managing resources on private grazing land, 
                including--
                            (i) planning, managing, and treating 
                        private grazing land resources;
                            (ii) ensuring the long-term sustainability 
                        of private grazing land resources;
                            (iii) harvesting, processing, and marketing 
                        private grazing land resources; and
                            (iv) identifying and managing weed, noxious 
                        weed, and brush encroachment problems;
                    (D) protecting and improving the quality and 
                quantity of water yields from private grazing land;
                    (E) maintaining and improving wildlife and fish 
                habitat on private grazing land;
                    (F) enhancing recreational opportunities on private 
                grazing land;
                    (G) maintaining and improving the aesthetic 
                character of private grazing lands; and
                    (H) identifying the opportunities and encouraging 
                the diversification of private grazing land 
                enterprises.
            (2) Program elements.--
                    (A) Funding.--The program under paragraph (1) shall 
                be funded through a specific line-item in the annual 
                appropriations for the Natural Resources Conservation 
                Service.
                    (B) Technical assistance and education.--Personnel 
                of the Department of Agriculture trained in pasture and 
                range management shall be made available under the 
                program to deliver and coordinate technical assistance 
                and education to owners and managers of private grazing 
                land, at the request of the owners and managers.
    (e) Grazing Technical Assistance Self-Help.--
            (1) Findings.--Congress finds that--
                    (A) there is a severe lack of technical assistance 
                for grazing producers;
                    (B) the Federal budget precludes any significant 
                expansion, and may force a reduction of, current levels 
                of technical support; and
                    (C) farmers and ranchers have a history of 
                cooperatively working together to address common needs 
                in the promotion of their products and in the drainage 
                of wet areas through drainage districts.
            (2) Establishment of grazing demonstration.--The Secretary 
        may establish 2 grazing management demonstration districts at 
        the recommendation of the Grazing Lands Conservation Initiative 
        Steering Committee.
            (3) Procedure.--
                    (A) Proposal.--Within a reasonable time after the 
                submission of a request of an organization of farmers 
                or ranchers engaged in grazing, the Secretary shall 
                propose that a grazing management district be 
                established.
                    (B) Funding.--The terms and conditions of the 
                funding and operation of the grazing management 
                district shall be proposed by the producers.
                    (C) Approval.--The Secretary shall approve the 
                proposal if the Secretary determines that the 
                proposal--
                            (i) is reasonable;
                            (ii) will promote sound grazing practices; 
                        and
                            (iii) contains provisions similar to the 
                        provisions contained in the promotion orders in 
                        effect on the effective date of this section.
                    (D) Area included.--The area proposed to be 
                included in a grazing management district shall be 
                determined by the Secretary on the basis of a petition 
                by farmers or ranchers.
                    (E) Authorization.--The Secretary may use authority 
                under the Agricultural Adjustment Act (7 U.S.C. 601 et 
                seq.), reenacted with amendments by the Agricultural 
                Marketing Agreement Act of 1937, to operate, on a 
                demonstration basis, a grazing management district.
                    (F) Activities.--The activities of a grazing 
                management district shall be scientifically sound 
                activities, as determined by the Secretary in 
                consultation with a technical advisory committee 
                composed of ranchers, farmers, and technical experts.
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section--
            (1) $20,000,000 for fiscal year 1996;
            (2) $40,000,000 for fiscal year 1997; and
            (3) $60,000,000 for fiscal year 1998 and each subsequent 
        fiscal year.

SEC. 355. CONFORMING AMENDMENTS.

    (a) Agricultural Conservation Program.--
            (1) Elimination.--
                    (A) Section 8 of the Soil Conservation and Domestic 
                Allotment Act (16 U.S.C. 590h) is amended--
                            (i) in subsection (b)--
                                    (I) by striking paragraphs (1) 
                                through (4) and inserting the 
                                following:
            ``(1) Environmental quality incentives program.--The 
        Secretary shall provide technical assistance, cost share 
        payments, and incentive payments to operators through the 
        environmental quality incentives program in accordance with 
        chapter 2 of subtitle D of the Food Security Act of 1985 (16 
        U.S.C. 3838 et seq.).''; and
                                    (II) by striking paragraphs (6) 
                                through (8); and
                            (ii) by striking subsections (d), (e), and 
                        (f).
                    (B) The first sentence of section 11 of the Soil 
                Conservation and Domestic Allotment Act (16 U.S.C. 
                590k) is amended by striking ``performance: Provided 
                further,'' and all that follows through ``or other 
                law'' and inserting ``performance''.
                    (C) Section 14 of the Act (16 U.S.C. 590n) is 
                amended--
                            (i) in the first sentence, by striking ``or 
                        8''; and
                            (ii) by striking the second sentence.
                    (D) Section 15 of the Act (16 U.S.C. 590o) is 
                amended--
                            (i) in the first undesignated paragraph--
                                    (I) in the first sentence, by 
                                striking ``sections 7 and 8'' and 
                                inserting ``section 7''; and
                                    (II) by striking the third 
                                sentence; and
                            (ii) by striking the second undesignated 
                        paragraph.
            (2) Conforming amendments.--
                    (A) Paragraph (1) of the last proviso of the matter 
                under the heading ``conservation reserve program'' 
                under the heading ``Soil Bank Programs'' of title I of 
                the Department of Agriculture and Farm Credit 
                Administration Appropriation Act, 1959 (72 Stat. 195; 7 
                U.S.C. 1831a) is amended by striking ``Agricultural 
                Conservation Program'' and inserting ``environmental 
                quality incentives program established under chapter 2 
                of subtitle D of the Food Security Act of 1985 (16 
                U.S.C. 3838 et seq.)''.
                    (B) Section 4 of the Cooperative Forestry 
                Assistance Act of 1978 (16 U.S.C. 2103) is amended by 
                striking ``as added by the Agriculture and Consumer 
                Protection Act of 1973'' each place it appears in 
                subsections (d) and (i) and inserting ``as in effect 
                before the amendment made by section 355(a)(1) of the 
                Agricultural Reform and Improvement Act of 1996''.
                    (C) Section 226(b)(4) of the Department of 
                Agriculture Reorganization Act of 1994 (7 U.S.C. 
                6932(b)(4)) is amended by striking ``and the 
                agricultural conservation program under the Soil 
                Conservation and Domestic Allotment Act (16 U.S.C. 590g 
                et seq.)''.
                    (D) Section 246(b)(8) of the Department of 
                Agriculture Reorganization Act of 1994 (7 U.S.C. 
                6962(b)(8)) is amended by striking ``and the 
                agricultural conservation program under the Soil 
                Conservation and Domestic Allotment Act (16 U.S.C. 590g 
                et seq.)''.
                    (E) Section 1271(c)(3)(C) of the Food, Agriculture, 
                Conservation, and Trade Act of 1990 (16 U.S.C. 
                2106a(c)(3)(C)) is amended by striking ``Agricultural 
                Conservation Program established under section 16(b) of 
                the Soil Conservation and Domestic Allotment Act (16 
                U.S.C. 590h, 590l, or 590p)'' and inserting 
                ``environmental quality incentives program established 
                under chapter 2 of subtitle D of the Food Security Act 
                of 1985 (16 U.S.C. 3838 et seq.)''.
                    (F) Section 126(a)(5) of the Internal Revenue Code 
                of 1986 is amended to read as follows:
            ``(5) The environmental quality incentives program 
        established under chapter 2 of subtitle D of the Food Security 
        Act of 1985 (16 U.S.C. 3838 et seq.).''.
                    (G) Section 304(a) of the Lake Champlain Special 
                Designation Act of 1990 (Public Law 101-596; 33 U.S.C. 
                1270 note) is amended--
                            (i) in the subsection heading, by striking 
                        ``Special Project Area Under the Agricultural 
                        Conservation Program'' and inserting ``A 
                        Priority Area Under the Environmental Quality 
                        Incentives Program''; and
                            (ii) in paragraph (1), by striking 
                        ``special project area under the Agricultural 
                        Conservation Program established under section 
                        8(b) of the Soil Conservation and Domestic 
                        Allotment Act (16 U.S.C. 590h(b))'' and 
                        inserting ``priority area under the 
                        environmental quality incentives program 
                        established under chapter 2 of subtitle D of 
                        the Food Security Act of 1985 (16 U.S.C. 3838 
                        et seq.)''.
                    (H) Section 6 of the Department of Agriculture 
                Organic Act of 1956 (70 Stat. 1033) is amended by 
                striking subsection (b).
    (b) Great Plains Conservation Program.--
            (1) Elimination.--Section 16 of the Soil Conservation and 
        Domestic Allotment Act (16 U.S.C. 590p) is repealed.
            (2) Conforming amendments.--
                    (A) The Agricultural Adjustment Act of 1938 is 
                amended by striking ``Great Plains program'' each place 
                it appears in sections 344(f)(8) and 377 (7 U.S.C. 
                1344(f)(8) and 1377) and inserting ``environmental 
                quality incentives program established under chapter 2 
                of subtitle D of the Food Security Act of 1985 (16 
                U.S.C. 3838 et seq.)''.
                    (B) Section 246(b) of the Department of Agriculture 
                Reorganization Act of 1994 (7 U.S.C. 6962(b)) is 
                amended by striking paragraph (2).
                    (C) Section 126(a) of the Internal Revenue Code of 
                1986 is amended--
                            (i) by striking paragraph (6); and
                            (ii) by redesignating paragraphs (7) 
                        through (10) as paragraphs (6) through (9), 
                        respectively.
    (c) Colorado River Basin Salinity Control Program.--
            (1) Elimination.--Section 202 of the Colorado River Basin 
        Salinity Control Act (43 U.S.C. 1592) is amended by striking 
        subsection (c).
            (2) Conforming amendment.--Section 246(b) of the Department 
        of Agriculture Reorganization Act of 1994 (7 U.S.C. 6962(b)) is 
        amended by striking paragraph (6).
    (d) Rural Environmental Conservation Program.--
            (1) Elimination.--Title X of the Agricultural Act of 1970 
        (16 U.S.C. 1501 et seq.) is repealed.
            (2) Conforming amendments.--Section 246(b) of the 
        Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 
        6962(b)) is amended--
                    (A) by striking paragraph (1); and
                    (B) by redesignating paragraphs (2) through (8) as 
                paragraphs (1) through (7), respectively.
    (e) Other Conservation Provisions.--Subtitle F of title XII of the 
Food Security Act of 1985 (16 U.S.C. 2005a and 2101 note) is repealed.
    (f) Commodity Credit Corporation Charter Act.--Section 5(g) of the 
Commodity Credit Corporation Charter Act (15 U.S.C. 714c(g)) is amended 
to read as follows:
    ``(g) Carry out conservation functions and programs.''.
    (g) Resource Conservation.--
            (1) Elimination.--Subtitles A, B, D, E, F, G, and J of 
        title XV of the Agriculture and Food Act of 1981 (95 Stat. 
        1328; 16 U.S.C. 3401 et seq.) are repealed.
            (2) Conforming amendment.--Section 739 of the Agriculture, 
        Rural Development, Food and Drug Administration, and Related 
        Agencies Appropriations Act, 1982 (7 U.S.C. 2272a), is 
        repealed.
    (h) Environmental Easement Program.--Section 1239(a) of the Food 
Security Act of 1985 (16 U.S.C. 3839(a)) is amended by striking ``1991 
through 1995'' and inserting ``1996 through 2002''.
    (i) Resource Conservation and Development Program.--Section 1538 of 
the Agriculture and Food Act of 1981 (16 U.S.C. 3461) is amended by 
striking ``1991 through 1995'' and inserting ``1996 through 2002''.
    (j) Technical Amendment.--The first sentence of the matter under 
the heading ``Commodity Credit Corporation'' of Public Law 99-263 (100 
Stat. 59; 16 U.S.C. 3841 note) is amended by striking ``: Provided 
further,'' and all that follows through ``Acts''.
    (k) Agricultural Water Quality Incentives Program.--Chapter 2 of 
subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 
3838 et seq.) is repealed.

SEC. 356. WATER BANK PROGRAM.

    Section 1230 of the Food Security Act of 1985 (16 U.S.C. 3830) is 
amended by adding at the end the following:
    ``(d) Water Bank Program.--For purposes of this Act, acreage 
enrolled, prior to the date of enactment of this subsection, in the 
water bank program authorized by the Water Bank Act (16 U.S.C. 1301 et 
seq.) shall be considered to have been enrolled in the conservation 
reserve program on the date the acreage was enrolled in the water bank 
program. Payments shall continue at the existing water bank rates.''.

SEC. 357. FLOOD WATER RETENTION PILOT PROJECTS.

    Section 16 of the Soil Conservation and Domestic Allotment Act (16 
U.S.C. 590p) is amended by adding at the end the following:
    ``(l) Flood Water Retention Pilot Projects.--
            ``(1) In general.--In cooperation with States, the 
        Secretary shall carry out at least 1 but not more than 2 pilot 
        projects to create and restore natural water retention areas to 
        control storm water and snow melt runoff within closed drainage 
        systems.
            ``(2) Practices.--To carry out paragraph (1), the Secretary 
        shall provide cost-sharing and technical assistance for the 
        establishment of nonstructural landscape management practices, 
        including agricultural tillage practices and restoration, 
        enhancement, and creation of wetland characteristics.
            ``(3) Funding.--
                    ``(A) Limitation.--The funding used by the 
                Secretary to carry out this subsection shall not exceed 
                $10,000,000 per project.
                    ``(B) Use of commodity credit corporation.--The 
                Secretary shall use the funds, facilities, and 
                authorities of the Commodity Credit Corporation to 
                carry out this subsection.
            ``(4) Additional pilot projects.--
                    ``(A) Evaluation.--Not later than 2 years after a 
                pilot project is implemented, the Secretary shall 
                evaluate the extent to which the project has reduced or 
                may reduce Federal outlays for emergency spending and 
                unplanned infrastructure maintenance by an amount that 
                exceeds the Federal cost of the project.
                    ``(B) Additional projects.--If the Secretary 
                determines that pilot projects carried out under this 
                subsection have reduced or may reduce Federal outlays 
                as described in subparagraph (A), the Secretary may 
                carry out, in accordance with this subsection, pilot 
                projects in addition to the projects authorized under 
                paragraph (1).''.

SEC. 358. WETLAND CONSERVATION EXEMPTION.

    Section 1222(b)(1) of the Food Security Act of 1985 (16 U.S.C. 
3822(b)(1)) is amended--
            (1) in subparagraph (C), by striking ``or'' at the end; and
            (2) by adding at the end the following:
                    ``(E) converted wetland, if--
                            ``(i) the extent of the conversion is 
                        limited to the reversion to conditions that 
                        will be at least equivalent to the wetland 
                        functions and values that existed prior to 
                        implementation of a voluntary wetland 
                        restoration, enhancement, or creation action;
                            ``(ii) technical determinations of the 
                        prior site conditions and the restoration, 
                        enhancement, or creation action have been 
                        adequately documented in a plan approved by the 
                        Natural Resources Conservation Service prior to 
                        implementation; and
                            ``(iii) the conversion action proposed by 
                        the private landowner is approved by the 
                        Natural Resources Conservation Service prior to 
                        implementation; or''.

SEC. 359. FLOODPLAIN EASEMENTS.

    Section 403 of the Agricultural Credit Act of 1978 (16 U.S.C. 2203) 
is amended by inserting ``, including the purchase of floodplain 
easements,'' after ``emergency measures''.

SEC. 360. RESOURCE CONSERVATION AND DEVELOPMENT PROGRAM 
              REAUTHORIZATION.

    Section 1538 of the Agriculture and Food Act of 1981 (16 U.S.C. 
3461) is amended by striking ``1991 through 1995'' and inserting ``1996 
through 2001''.

SEC. 361. CONSERVATION RESERVE NEW ACREAGE.

    Section 1231(a) of the Food Security Act of 1985 (16 U.S.C. 
3831(a)) is amended by adding at the end the following: ``The Secretary 
may enter into 1 or more new contracts to enroll acreage in a quantity 
equal to the quantity of acreage covered by any contract that 
terminates after the date of enactment of the Agricultural Market 
Transition Act.''.

SEC. 362. REPEAL OF REPORT REQUIREMENT.

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

SEC. 363. WATERSHED PROTECTION AND FLOOD PREVENTION ACT AMENDMENTS.

    (a) Declaration of Policy.--The first section of the Watershed 
Protection and Flood Prevention Act (16 U.S.C. 1001) is amended to read 
as follows:

``SECTION 1. DECLARATION OF POLICY.

    ``Erosion, flooding, sedimentation, and loss of natural habitats in 
the watersheds and waterways of the United States cause loss of life, 
damage to property, and a reduction in the quality of environment and 
life of citizens. It is therefore the sense of Congress that the 
Federal Government should join with States and their political 
subdivisions, public agencies, conservation districts, flood prevention 
or control districts, local citizens organizations, and Indian tribes 
for the purpose of conserving, protecting, restoring, and improving the 
land and water resources of the United States and the quality of the 
environment and life for watershed residents across the United 
States.''.
    (b) Definitions.--
            (1) Works of improvement.--Section 2 of the Act (16 U.S.C. 
        1002) is amended, with respect to the term ``works of 
        improvement''--
                    (A) in paragraph (1), by inserting ``, 
                nonstructural,'' after ``structural'';
                    (B) in paragraph (2), by striking ``or'' at the 
                end;
                    (C) by redesignating paragraph (3) as paragraph 
                (11);
                    (D) by inserting after paragraph (2) the following 
                new paragraphs:
            ``(3) a land treatment or other nonstructural practice, 
        including the acquisition of easements or real property rights, 
        to meet multiple watershed needs,
            ``(4) the restoration and monitoring of the chemical, 
        biological, and physical structure, diversity, and functions of 
        waterways and their associated ecological systems,
            ``(5) the restoration or establishment of wetland and 
        riparian environments as part of a multi-objective management 
        system that provides floodwater or storm water storage, 
        detention, and attenuation, nutrient filtering, fish and 
        wildlife habitat, and enhanced biological diversity,
            ``(6) the restoration of steam channel forms, functions, 
        and diversity using the principles of biotechnical slope 
        stabilization to reestablish a meandering, bankfull flow 
        channels, riparian vegetation, and floodplains,
            ``(7) the establishment and acquisition of multi-objective 
        riparian and adjacent flood prone lands, including greenways, 
        for sediment storage and floodwater storage,
            ``(8) the protection, restoration, enhancement and 
        monitoring of surface and groundwater quality, including 
        measures to improve the quality of water emanating from 
        agricultural lands and facilities,
            ``(9) the provision of water supply and municipal and 
        industrial water supply for rural communities having a 
        population of less than 55,000, according to the most recent 
        decennial census of the United States,
            ``(10) outreach to and organization of local citizen 
        organizations to participate in project design and 
        implementation, and the training of project volunteers and 
        participants in restoration and monitoring techniques, or''; 
        and
                    (E) in paragraph (11) (as so redesignated)--
                            (i) by inserting in the first sentence 
                        after ``proper utilization of land'' the 
                        following: ``, water, and related resources''; 
                        and
                            (ii) by striking the sentence that mandates 
                        that 20 percent of total project benefits be 
                        directly related to agriculture.
            (2) Local organization.--Such section is further amended, 
        with respect to the term ``local organization'', by adding at 
        the end the following new sentence: ``The term includes any 
        nonprofit organization (defined as having tax exempt status 
        under section 501(c)(3) of the Internal Revenue Code of 1986) 
        that has authority to carry out and maintain works of 
        improvement or is developing and implementing a work of 
        improvement in partnership with another local organization that 
        has such authority.''.
            (3) Waterway.--Such section is further amended by adding at 
        the end the following new definition:
    ``Waterway.--The term `waterway' means, on public or private land, 
any natural, degraded, seasonal, or created wetland on public or 
private land, including rivers, streams, riparian areas, marshes, 
ponds, bogs, mudflats, lakes, and estuaries. The term includes any 
natural or manmade watercourse which is culverted, channelized, or 
vegetatively cleared, including canals, irrigation ditches, drainage 
wages, and navigation, industrial, flood control and water supply 
channels.''.
    (c) Assistance to Local Organizations.--Section 3 of the Act (16 
U.S.C. 1003) is amended--
            (1) in paragraph (1), by inserting after ``(1)'' the 
        following ``to provide technical assistance to help local 
        organizations'';
            (2) in paragraph (2)--
                    (A) by inserting after ``(2)'' the following: ``to 
                provide technical assistance to help local 
                organizations''; and
                    (B) by striking ``engineering'' and inserting 
                ``technical and scientific''; and
            (3) by striking paragraph (3) and inserting the following 
        new paragraph:
            ``(3) to make allocations of costs to the project or 
        project components to determine whether the total of all 
        environmental, social, and monetary benefits exceed costs;''.
    (d) Cost Share Assistance.--
            (1) Amount of assistance.--Section 3A of the Act (16 U.S.C. 
        1003a) is amended by striking subsection (b) and inserting the 
        following:
    ``(b) Nonstructural Practices.--Notwithstanding any other provision 
of this Act, Federal cost share assistance to local organizations for 
the planning and implementation of nonstructural works of improvement 
may be provided using funds appropriated for the purposes of this Act 
for an amount not exceeding 75 percent of the total installation costs.
    ``(c) Structural Practices.--Notwithstanding any other provision of 
this Act, Federal cost share assistance to local organizations for the 
planning and implementation of structural works of improvement may be 
provided using funds appropriated for the purposes of this Act for 50 
percent of the total cost, including the cost of mitigating damage to 
fish and wildlife habitat and the value of any land or interests in 
land acquired for the work of improvement.
    ``(d) Special Rule for Limited Resource Communities.--
Notwithstanding any other provision of this Act, the Secretary may 
provide cost share assistance to a limited resource community for any 
works of improvement, using funds appropriated for the purposes of this 
Act, for an amount not to exceed 90 percent of the total cost.
    ``(e) Treatment of Other Federal Funds.--Not more than 50 percent 
of the non-Federal cost share may be satisfied using funds from other 
Federal agencies.''.
            (2) Conditions on assistance.--Section 4(1) of the Act (16 
        U.S.C. 1004(1)) is amended by striking ``, without cost to the 
        Federal Government from funds appropriated for the purposes of 
        this Act,''.
    (e) Benefit Cost Analysis.--Section 5(1) of the Act (16 U.S.C. 
1005(1)) is amended by striking ``the benefits'' and inserting ``the 
total benefits, including environmental, social, and monetary 
benefits,''.
    (f) Project Prioritization.--The Watershed Protection and Flood 
Prevention Act is amended by inserting after section 5 (16 U.S.C. 1005) 
the following new section:

``SEC. 5A. FUNDING PRIORITIES.

    ``In making funding decisions under this Act, the Secretary shall 
give priority to projects with one or more of the following attributes:
            ``(1) Projects providing significant improvements in 
        ecological values and functions in the project area.
            ``(2) Projects that enhance the long-term health of local 
        economies or generate job or job training opportunities for 
        local residents, including Youth Conservation and Service Corps 
        participants and displaced resource harvesters.
            ``(3) Projects that provide protection to human health, 
        safety, and property.
            ``(4) Projects that directly benefit economically 
        disadvantaged communities and enhance participation by local 
        residents of such communities.
            ``(5) Projects that restore or enhance fish and wildlife 
        species of commercial, recreational, subsistence or scientific 
        concern.
            ``(6) Projects or components of projects that can be 
        planned, designed, and implemented within two years.''.
    (g) Transfer of Funds.--The Watershed Protection and Flood 
Prevention Act (16 U.S.C. 1001-1010) is amended by adding at the end 
the following new section:

``SEC. 14. TRANSFERS OF FUNDS.

    ``The Secretary may accept transfers of funds from other Federal 
departments and agencies in order to carry out projects under this 
Act.''.

SEC. 364. ABANDONMENT OF CONVERTED WETLANDS.

    Section 1222 of the Food Security Act of 1985 (16 U.S.C. 3822) is 
amended by adding at the end the following:
    ``(k) Abandonment of Converted Wetlands.--The Secretary shall not 
determine that a prior converted or cropped wetland is abandoned, and 
therefore that the wetland is subject to this subtitle, on the basis 
that a producer has not planted an agricultural crop on the prior 
converted or cropped wetland after the date of enactment of this 
subsection, so long as any use of the wetland thereafter is limited to 
agricultural purposes.''.

                     TITLE IV--NUTRITION ASSISTANCE

SEC. 401. FOOD STAMP PROGRAM.

    (a) Disqualification of a Store or Concern.--Section 12 of the Food 
Stamp Act of 1977 (7 U.S.C. 2021) is amended--
            (1) by striking the section heading;
            (2) by striking ``Sec. 12. (a) Any'' and inserting the 
        following:

``SEC. 12. CIVIL MONEY PENALTIES AND DISQUALIFICATION OF RETAIL FOOD 
              STORES AND WHOLESALE FOOD CONCERNS.

    ``(a) Disqualification.--
            ``(1) In general.--An'';
            (3) by adding at the end of subsection (a) the following:
            ``(2) Employing certain persons.--A retail food store or 
        wholesale food concern shall be disqualified from participation 
        in the food stamp program if the store or concern knowingly 
        employs a person who has been found by the Secretary, or a 
        Federal, State, or local court, to have, within the preceding 
        3-year period--
                    ``(A) engaged in the trading of a firearm, 
                ammunition, an explosive, or a controlled substance (as 
                defined in section 102 of the Controlled Substances Act 
                (21 U.S.C. 802)) for a coupon; or
                    ``(B) committed any act that constitutes a 
                violation of this Act or a State law relating to using, 
                presenting, transferring, acquiring, receiving, or 
                possessing a coupon, authorization card, or access 
                device.''; and
            (4) in subsection (b)(3)(B), by striking ``neither the 
        ownership nor management of the store or food concern was 
        aware'' and inserting ``the ownership of the store or food 
        concern was not aware''.
    (b) Employment and Training.--Section 16(h)(1) of the Food Stamp 
Act of 1977 (7 U.S.C. 2025(h)(1)) is amended by striking ``1995'' each 
place it appears and inserting ``2002''.
    (c) Authorization of Pilot Projects.--The last sentence of section 
17(b)(1)(A) of the Food Stamp Act of 1977 (7 U.S.C. 2026(b)(1)(A)) is 
amended by striking ``1995'' and inserting ``2002''.
    (d) Outreach Demonstration Projects.--The first sentence of section 
17(j)(1)(A) of the Food Stamp Act of 1977 (7 U.S.C. 2026(j)(1)(A)) is 
amended by striking ``1995'' and inserting ``2002''.
    (e) Authorization for Appropriations.--The first sentence of 
section 18(a)(1) of the Food Stamp Act of 1977 (7 U.S.C. 2027(a)(1)) is 
amended by striking ``1995'' and inserting ``2002''.
    (f) Reauthorization of Puerto Rico Nutrition Assistance Program.--
The first sentence of section 19(a)(1)(A) of the Food Stamp Act of 1977 
(7 U.S.C. 2028(a)(1)(A)) is amended by striking ``$974,000,000'' and 
all that follows through ``fiscal year 1995'' and inserting 
``$1,143,000,000 for fiscal year 1996, $1,174,000,000 for fiscal year 
1997, $1,204,000,000 for fiscal year 1998, $1,236,000,000 for fiscal 
year 1999, $1,268,000,000 for fiscal year 2000, $1,301,000,000 for 
fiscal year 2001, and $1,335,000,000 for fiscal year 2002''.
    (g) American Samoa.--The Food Stamp Act of 1977 (7 U.S.C. 2011 et 
seq.) is amended by adding at the end the following:

``SEC. 24. TERRITORY OF AMERICAN SAMOA.

    ``From amounts made available to carry out this Act, the Secretary 
may pay to the Territory of American Samoa not more than $5,300,000 for 
each of fiscal years 1996 through 2002 to finance 100 percent of the 
expenditures for the fiscal year for a nutrition assistance program 
extended under section 601(c) of Public Law 96-597 (48 U.S.C. 
1469d(c)).''.

SEC. 402. COMMODITY DISTRIBUTION PROGRAM; COMMODITY SUPPLEMENTAL FOOD 
              PROGRAM.

    (a) Reauthorization.--The first sentence of section 4(a) of the 
Agriculture and Consumer Protection Act of 1973 (Public Law 93-86; 7 
U.S.C. 612c note) is amended by striking ``1995'' and inserting 
``2002''.
    (b) Funding.--Section 5 of the Agriculture and Consumer Protection 
Act of 1973 (Public Law 93-86; 7 U.S.C. 612c note) is amended--
            (1) in subsection (a)(2), by striking ``1995'' and 
        inserting ``2002''; and
            (2) in subsection (d)(2), by striking ``1995'' and 
        inserting ``2002''.
    (c) Carried-Over Funds.--20 percent of any commodity supplemental 
food program funds carried over under section 5 of the Agriculture and 
Consumer Protection Act of 1973 (Public Law 93-86; 7 U.S.C. 612c note) 
shall be available for administrative expenses of the program.

SEC. 403. EMERGENCY FOOD ASSISTANCE PROGRAM.

    (a) Reauthorization.--The first sentence of section 204(a)(1) of 
the Emergency Food Assistance Act of 1983 (Public Law 98-8; 7 U.S.C. 
612c note) is amended by striking ``1995'' and inserting ``2002''.
    (b) Program Termination.--Section 212 of the Emergency Food 
Assistance Act of 1983 (Public Law 98-8; 7 U.S.C. 612c note) is amended 
by striking ``1995'' and inserting ``2002''.
    (c) Required Purchases of Commodities.--Section 214 of the 
Emergency Food Assistance Act of 1983 (Public Law 98-8; 7 U.S.C. 612c 
note) is amended--
            (1) in the first sentence of subsection (a), by striking 
        ``1995'' and inserting ``2002''; and
            (2) in subsection (e), by striking ``1995'' each place it 
        appears and inserting ``2002''.

SEC. 404. SOUP KITCHENS PROGRAM.

    Section 110 of the Hunger Prevention Act of 1988 (Public Law 100-
435; 7 U.S.C. 612c note) is amended--
            (1) in the first sentence of subsection (a), by striking 
        ``1995'' and inserting ``2002''; and
            (2) in subsection (c)(2)--
                    (A) in the paragraph heading, by striking ``1995'' 
                and inserting ``2002''; and
                    (B) by striking ``1995'' each place it appears and 
                inserting ``2002''.

SEC. 405. NATIONAL COMMODITY PROCESSING.

    The first sentence of section 1114(a)(2)(A) of the Agriculture and 
Food Act of 1981 (7 U.S.C. 1431e(2)(A)) is amended by striking ``1995'' 
and inserting ``2002''.

                         TITLE V--MISCELLANEOUS

              Subtitle A--General Miscellaneous Provisions

SEC. 501. FUND FOR DAIRY PRODUCERS TO PAY FOR NUTRIENT MANAGEMENT.

    Section 8c(5) of the Agricultural Adjustment Act (7 U.S.C. 
608c(5)), reenacted with amendments by the Agricultural Marketing 
Agreement Act of 1937, is amended--
            (1) in paragraph (A), by adding at the end the following: 
        ``The minimum price for milk of the highest classification in 
        any order (other than an order amended under paragraph (M)) may 
        not be higher than the minimum price required under this 
        paragraph.''; and
            (2) by adding at the end the following:
                    ``(M) Safe harbor.--
                            ``(i) In general.--Providing that each 
                        order may be amended such that not more than 
                        $.10 per hundredweight of milk of the highest 
                        use classification may be added to the minimum 
                        applicable price to be set aside in a fund 
                        called the `Safe Harbor Fund Account' (referred 
                        to in this paragraph as the `Account').
                            ``(ii) Administration.--
                                    ``(I) Market administrator.--The 
                                Account shall be administered by the 
                                Market Administrator.
                                    ``(II) Use of funds.--A 
                                determination regarding the use of the 
                                funds in the Account shall be made by 
                                the Safe Harbor Committee established 
                                under clause (iii).
                            ``(iii) Safe harbor committee.--The 
                        Secretary shall establish a Safe Harbor 
                        Committee consisting of 7 milk producers 
                        appointed by the Secretary who supply milk to 
                        handlers regulated under a Federal milk 
                        marketing order.
                            ``(iv) Use of funds.--
                                    ``(I) Applications.--To be eligible 
                                to use amounts in the fund, a milk 
                                producer who supplies milk to handlers 
                                regulated under a Federal milk 
                                marketing order shall submit an 
                                application to the Safe Harbor 
                                Committee.
                                    ``(II) Approval.--The Safe Harbor 
                                Committee may approve only applications 
                                that fund conservation practices 
                                approved by the Secretary that control 
                                the off-migration of nutrients from the 
                                farm.
                                    ``(III) State water quality 
                                priorities.--In approving applications, 
                                the Safe Harbor Committee shall take 
                                into account, to the extent 
                                practicable, the applicable State water 
                                quality priorities.''.

SEC. 502. CROP INSURANCE.

    (a) Catastrophic Risk Protection.--Section 508(b) of the Federal 
Crop Insurance Act (7 U.S.C. 1508(b)) is amended--
            (1) in paragraph (4), by adding at the end the following:
                    ``(C) Delivery of coverage.--
                            ``(i) In general.--In full consultation 
                        with approved insurance providers, the 
                        Secretary may continue to offer catastrophic 
                        risk protection in a State (or a portion of a 
                        State) through local offices of the Department 
                        if the Secretary determines that there is an 
                        insufficient number of approved insurance 
                        providers operating in the State or portion to 
                        adequately provide catastrophic risk protection 
                        coverage to producers.
                            ``(ii) Coverage by approved insurance 
                        providers.--To the extent that catastrophic 
                        risk protection coverage by approved insurance 
                        providers is sufficiently available in a State 
                        as determined by the Secretary, only approved 
                        insurance providers may provide the coverage in 
                        the State.
                            ``(iii) Current policies.--Subject to 
                        clause (ii), all catastrophic risk protection 
                        policies written by local offices of the 
                        Department shall be transferred (including all 
                        fees collected for the crop year in which the 
                        approved insurance provider will assume the 
                        policies) to the approved insurance provider 
                        for performance of all sales, service, and loss 
                        adjustment functions.''; and
            (2) in paragraph (7), by striking subparagraph (A) and 
        inserting the following:
                    ``(A) In general.--Effective for the spring-planted 
                1996 and subsequent crops, to be eligible for any 
                payment or loan under the Agricultural Market 
                Transition Act or the Agricultural Adjustment Act of 
                1938 (7 U.S.C. 1301 et seq.), the conservation reserve 
                program, or any benefit described in section 371 of the 
                Consolidated Farm and Rural Development Act (7 U.S.C. 
                2008f), a person shall--
                            ``(i) obtain at least the catastrophic 
                        level of insurance for each crop of economic 
                        significance in which the person has an 
                        interest; or
                            ``(ii) provide a written waiver to the 
                        Secretary that waives any eligibility for 
                        emergency crop loss assistance in connection 
                        with the crop.''.
    (b) Coverage of Seed Crops.--Section 519(a)(2)(B) of the Act (7 
U.S.C. 1519(a)(2)(B)) is amended by inserting ``seed crops,'' after 
``turfgrass sod,''.
    (c) Crop Insurance Pilot Project.--
            (1) Coverage.--The Secretary of Agriculture shall develop 
        and administer a pilot project for crop insurance coverage that 
        indemnifies crop losses due to a natural disaster such as 
        insect infestation or disease.
            (2) Actuarial soundness.--A pilot project under this 
        paragraph shall be actuarially sound, as determined by the 
        Secretary and administered at no net cost to the United States 
        Treasury.
            (3) Duration.--A pilot project under this paragraph shall 
        be of two years' duration.
    (d) Crop Insurance for Specialty Crops.--Section 508(a)(6) of the 
Federal Crop Insurance Act (7 U.S.C. 1508(a)(6)) is amended by adding 
at the end the following:
                    ``(D) Addition of specialty crops.--Not later than 
                2 years after the date of enactment of this 
                subparagraph--
                            ``(i) the Corporation shall issue 
                        regulations to expand crop insurance coverage 
                        under this title to include aquaculture; and
                            ``(ii) The Corporation shall conduct a 
                        study and limited pilot program on the 
                        feasibility of insuring nursery crops.''.
    (e) Marketing Windows.--Section 508(j) of the Federal Crop 
Insurance Act (7 U.S.C. 1508(j)) is amended by adding at the end the 
following:
            ``(4) Marketing windows.--The Corporation shall consider 
        marketing windows in determining whether it is feasible to 
        require planting during a crop year.''.

SEC. 503. REVENUE INSURANCE.

    Section 508(h) of the Federal Crop Insurance Act (7 U.S.C. 1508(h)) 
is amended by adding at the end the following:
            ``(9) Revenue insurance pilot program.--
                    ``(A) In general.--Not later than December 31, 
                1996, the Secretary shall carry out a pilot program in 
                a limited number of counties, as determined by the 
                Secretary, for crop years 1997, 1998, 1999, and 2000, 
                under which a producer of corn, wheat, or soybeans may 
                elect to receive insurance against loss of revenue, as 
                determined by the Secretary.
                    ``(B) Administration.--Revenue insurance under this 
                paragraph shall--
                            ``(i) be offered through reinsurance 
                        arrangements with private insurance companies;
                            ``(ii) offer at least a minimum level of 
                        coverage that is an alternative to catastrophic 
                        crop insurance;
                            ``(iii) be actuarily sound; and
                            ``(iv) require the payment of premiums and 
                        administrative fees by an insured producer.''.

SEC. 504. COLLECTION AND USE OF AGRICULTURAL QUARANTINE AND INSPECTION 
              FEES.

    Subsection (a) of section 2509 of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (21 U.S.C. 136a) is amended to read 
as follows:
    ``(a) Quarantine and Inspection Fees.--
            ``(1) Fees authorized.--The Secretary of Agriculture may 
        prescribe and collect fees sufficient--
                    ``(A) to cover the cost of providing agricultural 
                quarantine and inspection services in connection with 
                the arrival at a port in the customs territory of the 
                United States, or the preclearance or preinspection at 
                a site outside the customs territory of the United 
                States, of an international passenger, commercial 
                vessel, commercial aircraft, commercial truck, or 
                railroad car;
                    ``(B) to cover the cost of administering this 
                subsection; and
                    ``(C) through fiscal year 2002, to maintain a 
                reasonable balance in the Agricultural Quarantine 
                Inspection User Fee Account established under paragraph 
                (5).
            ``(2) Limitation.--In setting the fees under paragraph (1), 
        the Secretary shall ensure that the amount of the fees are 
        commensurate with the costs of agricultural quarantine and 
        inspection services with respect to the class of persons or 
        entities paying the fees. The costs of the services with 
        respect to passengers as a class includes the costs of related 
        inspections of the aircraft or other vehicle.
            ``(3) Status of fees.--Fees collected under this subsection 
        by any person on behalf of the Secretary are held in trust for 
        the United States and shall be remitted to the Secretary in 
        such manner and at such times as the Secretary may prescribe.
            ``(4) Late payment penalties.--If a person subject to a fee 
        under this subsection fails to pay the fee when due, the 
        Secretary shall assess a late payment penalty, and the overdue 
        fees shall accrue interest, as required by section 3717 of 
        title 31, United States Code.
            ``(5) Agricultural quarantine inspection user fee 
        account.--
                    ``(A) Establishment.--There is established in the 
                Treasury of the United States a no-year fund, to be 
                known as the `Agricultural Quarantine Inspection User 
                Fee Account', which shall contain all of the fees 
                collected under this subsection and late payment 
                penalties and interest charges collected under 
                paragraph (4) through fiscal year 2002.
                    ``(B) Use of account.--For each of the fiscal years 
                1996 through 2002, funds in the Agricultural Quarantine 
                Inspection User Fee Account shall be available, in such 
                amounts as are provided in advance in appropriations 
                Acts, to cover the costs associated with the provision 
                of agricultural quarantine and inspection services and 
                the administration of this subsection. Amounts made 
                available under this subparagraph shall be available 
                until expended.
                    ``(C) Excess fees.--Fees and other amounts 
                collected under this subsection in any of the fiscal 
                years 1996 through 2002 in excess of $100,000,000 shall 
                be available for the purposes specified in subparagraph 
                (B) until expended, without further appropriation.
            ``(6) Use of amounts collected after fiscal year 2002.--
        After September 30, 2002, the unobligated balance in the 
        Agricultural Quarantine Inspection User Fee Account and fees 
        and other amounts collected under this subsection shall be 
        credited to the Department of Agriculture accounts that incur 
        the costs associated with the provision of agricultural 
        quarantine and inspection services and the administration of 
        this subsection. The fees and other amounts shall remain 
        available to the Secretary until expended without fiscal year 
        limitation.
            ``(7) Staff years.--The number of full-time equivalent 
        positions in the Department of Agriculture attributable to the 
        provision of agricultural quarantine and inspection services 
        and the administration of this subsection shall not be counted 
        toward the limitation on the total number of full-time 
        equivalent positions in all agencies specified in section 5(b) 
        of the Federal Workforce Restructuring Act of 1994 (Public Law 
        103-226; 5 U.S.C. 3101 note) or other limitation on the total 
        number of full-time equivalent positions.''.

SEC. 505. COMMODITY CREDIT CORPORATION INTEREST RATE.

    Notwithstanding any other provision of law, the monthly Commodity 
Credit Corporation interest rate applicable to loans provided for 
agricultural commodities by the Corporation shall be 100 basis points 
greater than the rate determined under the applicable interest rate 
formula in effect on October 1, 1995.

SEC. 506. EVERGLADES AGRICULTURAL AREA.

    (a) In General.--On July 1, 1996, out of any funds in the Treasury 
not otherwise appropriated, the Secretary of the Treasury shall provide 
$200,000,000 to the Secretary of the Interior to carry out this 
section.
    (b) Entitlement.--The Secretary of the Interior--
            (1) shall accept the funds made available under subsection 
        (a);
            (2) shall be entitled to receive the funds; and
            (3) shall use the funds to conduct restoration activities 
        in the Everglades ecosystem, which may include acquiring 
        private acreage in the Everglades Agricultural Area including 
        approximately 52,000 acres that is commonly known as the 
        ``Talisman tract''.
    (c) Transferring Funds.--The Secretary of the Interior may transfer 
funds to the Army Corps of Engineers, the State of Florida, or the 
South Florida Water Management District to carry out subsection (b)(3).
    (d) Deadline.--Not later than December 31, 1999, the Secretary of 
the Interior shall utilize the funds for restoration activities 
referred to in subsection (b)(3).

SEC. 507. FUND FOR RURAL AMERICA.

    (a) In General.--The Secretary shall create an account called the 
Fund for Rural America for the purposes of providing funds for 
activities described in subsection (c).
    (b) Commodity Credit Corporation.--In each of the 1996 through 1998 
fiscal years, the Secretary shall transfer into the Fund for Rural 
America (hereafter referred to as the ``Account'')--
            (1) $50,000,000 for the 1996 fiscal year;
            (2) $100,000,000 for the 1997 fiscal year; and
            (3) $150,000,000 for the 1998 fiscal year.
    (c) Purposes.--Except as provided in subsection (d), the Secretary 
shall provide not more than one-third of the funds from the Account for 
activities described in paragraph (2).
            (1) Rural development activities.--The Secretary may use 
        the funds in the Account for the following rural development 
        activities authorized in:
                    (A) The Housing Act of 1949 for--
                            (i) direct loans to low income borrowers 
                        pursuant to section 502;
                            (ii) loans for financial assistance for 
                        housing for domestic farm laborers pursuant to 
                        section 514;
                            (iii) financial assistance for housing of 
                        domestic farm labor pursuant to section 516;
                            (iv) grants and contracts for mutual and 
                        self help housing pursuant to section 
                        523(b)(1)(A); and
                            (v) grants for Rural Housing Preservation 
                        pursuant to section 533;
                    (B) The Food Security Act of 1985 for loans to 
                intermediary borrowers under the Rural Development Loan 
                Fund;
                    (C) Consolidated Farm and Rural Development Act 
                for--
                            (i) grants for Rural Business Enterprises 
                        pursuant to section 310B (c) and (j);
                            (ii) direct loans, loan guarantees and 
                        grants for water and waste water projects 
                        pursuant to section 306; and
                            (iii) down payments assistance to farmers, 
                        section 310E;
                    (D) grants for outreach to socially disadvantaged 
                farmers and ranchers pursuant to section 2501 of the 
                Food, Agriculture, Conservation, and Trade Act of 1990 
                (7 U.S.C. 2279); and
                    (E) grants pursuant to section 204(6) of the 
                Agricultural Marketing Act of 1946.
            (2) Research.--
                    (A) In general.--The Secretary may use the funds in 
                the Account for research grants to increase the 
                competitiveness and farm profitability, protect and 
                enhance natural resources, increase economic 
                opportunities in farming and rural communities and 
                expand locally owned value added processing and 
                marketing operations.
                    (B) Eligible grantee.--The Secretary may make a 
                grant under this paragraph to--
                            (i) a college or university;
                            (ii) a State agricultural experiment 
                        station;
                            (iii) a State Cooperative Extension 
                        Service;
                            (iv) a research institution or 
                        organization;
                            (v) a private organization or person; or
                            (iv) a Federal agency.
                    (C) Use of grant.--
                            (i) In general.--A grant made under this 
                        paragraph may be used by a grantee for 1 or 
                        more of the following uses--
                                    (I) research, ranging from 
                                discovery to principles of application;
                                    (II) extension and related private-
                                sector activities; and
                                    (III) education.
                            (ii) Limitation.--No grant shall be made 
                        for any project, determined by the Secretary, 
                        to be eligible for funding under research and 
                        commodity promotion programs administered by 
                        the Department.
                    (D) Administration.--
                            (i) Priority.--In administering this 
                        paragraph, the Secretary shall--
                                    (I) establish priorities for 
                                allocating grants, based on needs and 
                                oppportunities of the food and 
                                agriculture system in the United States 
                                related to the goals of the paragraph;
                                    (II) seek and accept proposals for 
                                grants;
                                    (III) determine the relevance and 
                                merit of proposals through a system of 
                                peer and stakeholder review; and
                                    (IV) award grants on the basis of 
                                merit, quality, and relevance to 
                                advancing the national research and 
                                extension purposes.
                            (ii) Competitive awarding.--A grant under 
                        this paragraph shall be awarded on a 
                        competitive basis.
                            (iii) Terms.--A grant under this paragraph 
                        shall have a term that does not exceed 5 years.
                            (iv) Matching funds.--As a condition of 
                        receipts under this paragraph, the Secretary 
                        shall require the funding of the grant with 
                        equal matching funds from a non-Federal source 
                        if the grant is--
                                    (I) for applied research that is 
                                commodity-specific; and
                                    (II) not of national scope.
                            (v) Administrative costs.--
                                    (I) In general.--The Secretary may 
                                use not more than 4 percent of the 
                                funds made available under this 
                                paragraph for administrative costs 
                                incurred by the Secretary in carrying 
                                out this paragraph.
                                    (II) Limitation.--Funds made 
                                available under this paragraph shall 
                                not be used--
                                            (aa) for the construction 
                                        of a new building or the 
                                        acquisition, expansion, 
                                        remodeling, or alteration of an 
                                        existing building (including 
                                        site grading and improvement 
                                        and architect fees); or
                                            (bb) in excess of ten 
                                        percent of the annual 
                                        allocation for commodity-
                                        specific projects not of the 
                                        national scope.
    (d) Limitations.--No funds from the Fund for Rural America may be 
used for an activity specified in subsection (c) if the current level 
of appropriations for the activity is less than 90 percent of the 1996 
fiscal year appropriations for the activity adjusted for inflation.

    Subtitle B--Options Pilot Programs and Risk Management Education

SEC. 511. SHORT TITLE.

    This subtitle may be cited as the ``Options Pilot Programs Act of 
1996''.

SEC. 512. PURPOSE.

    The purpose of this subtitle is to authorize the Secretary of 
Agriculture (referred to in this subtitle as the ``Secretary'') to--
            (1) conduct research through pilot programs for 1 or more 
        program commodities to ascertain whether futures and options 
        contracts can provide producers with reasonable protection from 
        the financial risks of fluctuations in price, yield, and income 
        inherent in the production and marketing of agricultural 
        commodities; and
            (2) provide education in the management of the financial 
        risks inherent in the production and marketing of agricultural 
        commodities.

SEC. 513. PILOT PROGRAMS.

    (a) In General.--The Secretary is authorized to conduct pilot 
programs for 1 or more supported commodities through December 31, 2002.
    (b) Distribution of Pilot Programs.--The Secretary may operate a 
pilot program described in subsection (a) (referred to in this subtitle 
as a ``pilot program'') in up to 100 counties for each program 
commodity with not more than 6 of those counties in any 1 State. A 
pilot program shall not be implemented in any county for more than 3 of 
the 1996 through 2002 calendar years.
    (c) Eligible Participants.--
            (1) In general.--In carrying out a pilot program, the 
        Secretary may contract with a producer who--
                    (A) is eligible to participate in a price support 
                program for a supported commodity;
                    (B) desires to participate in a pilot program; and
                    (C) is located in an area selected for a pilot 
                program.
            (2) Contracts.--Each contract under paragraph (1) shall set 
        forth the terms and conditions for participation in a pilot 
        program.
    (d) Eligible Markets.--Trades for futures and options contracts 
under a pilot program shall be carried out on commodity futures and 
options markets designated as contract markets under the Commodity 
Exchange Act (7 U.S.C. 1 et seq.)

SEC. 514. TERMS AND CONDITIONS.

    (a) In General.--To be eligible to participate in any pilot program 
for any commodity conducted under this subtitle, a producer shall meet 
the eligibility requirements established under this subtitle (including 
regulations issued under this subtitle).
    (b) Recordkeeping.--Producers shall compile, maintain, and submit 
(or authorize the compilation, maintenance, and submission) of such 
documentation as the regulations governing any pilot program require.

SEC. 515. NOTICE.

    (a) Alternative Programs.--Pilot programs shall be alternatives to 
other related programs of the Department of Agriculture.
    (b) Notice to Producers.--The Secretary shall provide notice to 
each producer participating in a pilot program that--
            (1) the participation of the producer in a pilot program is 
        voluntary; and
            (2) neither the United States, the Commodity Credit 
        Corporation, the Federal Crop Insurance Corporation, the 
        Department of Agriculture, nor any other Federal agency is 
        authorized to guarantee that participants in the pilot program 
        will be better or worse off financially as a result of 
        participation in a pilot program than the producer would have 
        been if the producer had not participated in a pilot program.

SEC. 516. COMMODITY CREDIT CORPORATION.

    (a) In General.--Pilot programs established under this subtitle 
shall be funded by and carried out through the Commodity Credit 
Corporation.
    (b) Limitation.--In conducting the programs, the Secretary shall, 
to the maximum extent practicable, operate the pilot programs in a 
budget neutral manner.

SEC. 517. RISK MANAGEMENT EDUCATION.

    The Secretary shall provide such education in management of the 
financial risks inherent in the production and marketing of 
agricultural commodities as the Secretary considers appropriate.

     Subtitle C--Commercial Transportation of Equine for Slaughter

SEC. 521. FINDINGS.

    Congress finds that, to ensure that equine sold for slaughter are 
provided humane treatment and care, it is essential to regulate the 
transportation, care, handling, and treatment of equine by any person 
engaged in the commercial transportation of equine for slaughter.

SEC. 522. DEFINITIONS.

    In this subtitle:
            (1) Commerce.--The term ``commerce'' means trade, traffic, 
        transportation, or other commerce by a person--
                    (A) between any State, territory, or possession of 
                the United States, or the District of Columbia, and any 
                place outside thereof;
                    (B) between points within the same State, 
                territory, or possession of the United States, or the 
                District of Columbia, but through any place outside 
                thereof; or
                    (C) within any territory or possession of the 
                United States or the District of Columbia.
            (2) Department.--The term ``Department'' means the United 
        States Department of Agriculture.
            (3) Equine.--The term ``equine'' means any member of the 
        Equidae family.
            (4) Equine for slaughter.--The term ``equine for 
        slaughter'' means any equine that is transported, or intended 
        to be transported, by vehicle to a slaughter facility or 
        intermediate handler from a sale, auction, or intermediate 
        handler by a person engaged in the business of transporting 
        equine for slaughter.
            (5) Foal.--The term ``foal'' means an equine that is not 
        more than 6 months of age.
            (6) Intermediate handler.--The term ``intermediate 
        handler'' means any person regularly engaged in the business of 
        receiving custody of equine for slaughter in connection with 
        the transport of the equine to a slaughter facility, including 
        a stockyard, feedlot, or assembly point.
            (7) Person.--The term ``person'' means any individual, 
        partnership, firm, company, corporation, or association that 
        regularly transports equine for slaughter in commerce, except 
        that the term shall not include an individual or other entity 
        that does not transport equine for slaughter on a regular basis 
        as part of a commercial enterprise.
            (8) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.
            (9) Vehicle.--The term ``vehicle'' means any machine, 
        truck, tractor, trailer, or semitrailer, or any combination 
        thereof, propelled or drawn by mechanical power and used on a 
        highway in the commercial transportation of equine for 
        slaughter.
            (10) Stallion.--The term ``stallion'' means any uncastrated 
        male equine that is 1 year of age or older.

SEC. 523. STANDARDS FOR HUMANE COMMERCIAL TRANSPORTATION OF EQUINE FOR 
              SLAUGHTER.

    (a) In General.--Subject to the availability of appropriations, not 
later than 1 year after the date of enactment of this subtitle, the 
Secretary shall issue, by regulation, standards for the humane 
commercial transportation by vehicle of equine for slaughter.
    (b) Prohibition.--No person engaged in the regular business of 
transporting equine by vehicle for slaughter as part of a commercial 
enterprise shall transport in commerce, to a slaughter facility or 
intermediate handler, an equine for slaughter except in accordance with 
the standards and this subtitle.
    (c) Minimum Requirements.--The standards shall include minimum 
requirements for the humane handling, care, treatment, and equipment 
necessary to ensure the safe and humane transportation of equine for 
slaughter. The standards shall require, at a minimum, that--
            (1) no equine for slaughter shall be transported for more 
        than 24 hours without being unloaded from the vehicle and 
        allowed to rest for at least 8 consecutive hours and given 
        access to adequate quantities of wholesome food and potable 
        water;
            (2) a vehicle shall provide adequate headroom for an equine 
        for slaughter with a minimum of at least 6 feet, 6 inches of 
        headroom from the roof and beams or other structural members 
        overhead to floor underfoot, except that a vehicle transporting 
        6 equine or less shall provide a minimum of at least 6 feet of 
        headroom from the roof and beams or other structural members 
        overhead to floor underfoot if none of the equine are over 16 
        hands;
            (3) the interior of a vehicle shall--
                    (A) be free of protrusions, sharp edges, and 
                harmful objects;
                    (B) have ramps and floors that are adequately 
                covered with a nonskid nonmetallic surface; and
                    (C) be maintained in a sanitary condition;
            (4) a vehicle shall--
                    (A) provide adequate ventilation and shelter from 
                extremes of weather and temperature for all equine;
                    (B) be of appropriate size, height, and interior 
                design for the number of equine being carried to 
                prevent overcrowding; and
                    (C) be equipped with doors and ramps of sufficient 
                size and location to provide for safe loading and 
                unloading, including unloading during emergencies;
            (5)(A) equine shall be positioned in the vehicle by size; 
        and
            (B) stallions shall be segregated from other equine;
            (6)(A) all equine for slaughter must be fit to travel as 
        determined by an accredited veterinarian, who shall prepare a 
        certificate of inspection, prior to loading for transport, 
        that--
                    (i) states that the equine were inspected and 
                satisfied the requirements of subparagraph (B);
                    (ii) includes a clear description of each equine; 
                and
                    (iii) is valid for 7 days;
            (B) no equine shall be transported to slaughter if the 
        equine is found to be--
                    (i) suffering from a broken or dislocated limb;
                    (ii) unable to bear weight on all 4 limbs;
                    (iii) blind in both eyes; or
                    (iv) obviously suffering from severe illness, 
                injury, lameness, or physical debilitation that would 
                make the equine unable to withstand the stress of 
                transportation;
            (C) no foal may be transported for slaughter;
            (D) no mare in foal that exhibits signs of impending 
        parturition may be transported for slaughter; and
            (E) no equine for slaughter shall be accepted by a 
        slaughter facility unless the equine is--
                    (i) inspected on arrival by an employee of the 
                slaughter facility or an employee of the Department; 
                and
                    (ii) accompanied by a certificate of inspection 
                issued by an accredited veterinarian, not more than 7 
                days before the delivery, stating that the veterinarian 
                inspected the equine on a specified date.

SEC. 524. RECORDS.

    (a) In General.--A person engaged in the business of transporting 
equine for slaughter shall establish and maintain such records, make 
such reports, and provide such information as the Secretary may, by 
regulation, require for the purposes of carrying out, or determining 
compliance with, this subtitle.
    (b) Minimum Requirements.--The records shall include, at a 
minimum--
            (1) the veterinary certificate of inspection;
            (2) the names and addresses of current owners and 
        consignors, if applicable, of the equine at the time of sale or 
        consignment to slaughter; and
            (3) the bill of sale or other documentation of sale for 
        each equine.
    (c) Availability.--The records shall--
            (1) accompany the equine during transport to slaughter;
            (2) be retained by any person engaged in the business of 
        transporting equine for slaughter for a reasonable period of 
        time, as determined by the Secretary, except that the 
        veterinary certificate of inspection shall be surrendered at 
        the slaughter facility to an employee or designee of the 
        Department and kept by the Department for a reasonable period 
        of time, as determined by the Secretary; and
            (3) on request of an officer or employee of the Department, 
        be made available at all reasonable times for inspection and 
        copying by the officer or employee.

SEC. 525. AGENTS.

    (a) In General.--For purposes of this subtitle, the act, omission, 
or failure of an individual acting for or employed by a person engaged 
in the business of transporting equine for slaughter, within the scope 
of the employment or office of the individual, shall be considered the 
act, omission, or failure of the person engaging in the commercial 
transportation of equine for slaughter as well as of the individual.
    (b) Assistance.--If an equine suffers a substantial injury or 
illness while being transported for slaughter on a vehicle, the driver 
of the vehicle shall seek prompt assistance from a licensed 
veterinarian.

SEC. 526. COOPERATIVE AGREEMENTS.

    The Secretary is authorized to cooperate with States, political 
subdivisions of States, State agencies (including State departments of 
agriculture and State law enforcement agencies), and foreign 
governments to carry out and enforce this subtitle (including 
regulations issued under this subtitle).

SEC. 527. INVESTIGATIONS AND INSPECTIONS.

    (a) In General.--The Secretary is authorized to conduct such 
investigations or inspections as the Secretary considers necessary to 
enforce this subtitle (including any regulation issued under this 
subtitle).
    (b) Access.--For the purposes of conducting an investigation or 
inspection under subsection (a), the Secretary shall, at all reasonable 
times, have access to--
            (1) the place of business of any person engaged in the 
        business of transporting equine for slaughter;
            (2) the facilities and vehicles used to transport the 
        equine; and
            (3) records required to be maintained under section 834.
    (c) Assistance to or Destruction of Equine.--The Secretary shall 
issue such regulations as the Secretary considers necessary to permit 
employees or agents of the Department to--
            (1) provide assistance to any equine that is covered by 
        this subtitle (including any regulation issued under this 
        subtitle); or
            (2) destroy, in a humane manner, any such equine found to 
        be suffering.

SEC. 528. INTERFERENCE WITH ENFORCEMENT.

    (a) In General.--Subject to subsection (b), a person who forcibly 
assaults, resists, opposes, impedes, intimidates, or interferes with 
any person while engaged in or on account of the performance of an 
official duty of the person under this subtitle shall be fined not more 
than $5,000 or imprisoned not more than 3 years, or both.
    (b) Weapons.--If the person uses a deadly or dangerous weapon in 
connection with an action described in subsection (a), the person shall 
be fined not more than $10,000 or imprisoned not more than 10 years, or 
both.

SEC. 529. JURISDICTION OF COURTS.

    Except as provided in section 840(a)(5), a district court of the 
United States in any appropriate judicial district under section 1391 
of title 28, United States Code, shall have jurisdiction to 
specifically enforce this subtitle, to prevent and restrain a violation 
of this subtitle, and to otherwise enforce this subtitle.

SEC. 530. CIVIL AND CRIMINAL PENALTIES.

    (a) Civil Penalties.--
            (1) In general.--A person who violates this subtitle 
        (including a regulation or standard issued under this subtitle) 
        shall be assessed a civil penalty by the Secretary of not more 
        than $2,000 for each violation.
            (2) Separate offenses.--Each equine transported in 
        violation of this subtitle shall constitute a separate offense. 
        Each violation and each day during which a violation continues 
        shall constitute a separate offense.
            (3) Hearings.--No penalty shall be assessed under this 
        subsection unless the person who is alleged to have violated 
        this subtitle is given notice and opportunity for a hearing 
        with respect to an alleged violation.
            (4) Final order.--An order of the Secretary assessing a 
        penalty under this subsection shall be final and conclusive 
        unless the aggrieved person files an appeal from the order 
        pursuant to paragraph (5).
            (5) Appeals.--Not later than 30 days after entry of a final 
        order of the Secretary issued pursuant to this subsection, a 
        person aggrieved by the order may seek review of the order in 
        the appropriate United States Court of Appeals. The Court shall 
        have exclusive jurisdiction to enjoin, set aside, suspend (in 
        whole or in part), or to determine the validity of the order.
            (6) Nonpayment of penalty.--On a failure to pay the penalty 
        assessed by a final order under this section, the Secretary 
        shall request the Attorney General to institute a civil action 
        in a district court of the United States or other United States 
        court for any district in which the person is found, resides, 
        or transacts business, to collect the penalty. The court shall 
        have jurisdiction to hear and decide the action.
    (b) Criminal Penalties.--
            (1) First offense.--Subject to paragraph (2), a person who 
        knowingly violates this subtitle (or a regulation or standard 
        issued under this subtitle) shall, on conviction of the 
        violation, be subject to imprisonment for not more than 1 year 
        or a fine of not more than $2,000, or both.
            (2) Subsequent offenses.--On conviction of a second or 
        subsequent offense described in paragraph (1), a person shall 
        be subject to imprisonment for not more than 3 years or to a 
        fine of not more than $5,000, or both.

SEC. 531. PAYMENTS FOR TEMPORARY OR MEDICAL ASSISTANCE FOR EQUINE DUE 
              TO VIOLATIONS.

    From sums received as penalties, fines, or forfeitures of property 
for any violation of this subtitle (including a regulation issued under 
this subtitle), the Secretary shall pay the reasonable and necessary 
costs incurred by any person in providing temporary care or medical 
assistance for any equine that needs the care or assistance due to a 
violation of this subtitle.

SEC. 532. RELATIONSHIP TO STATE LAW.

    Nothing in this subtitle prevents a State from enacting or 
enforcing any law (including a regulation) that is not inconsistent 
with this subtitle or that is more restrictive than this subtitle.

SEC. 533. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There are authorized to be appropriated for each 
fiscal year such sums as are necessary to carry out this subtitle.
    (b) Limitation.--No provision of this subtitle shall be effective, 
or be enforced against any person, during a fiscal year unless funds to 
carry out this subtitle have been appropriated for the fiscal year.

                       Subtitle D--Miscellaneous

SEC. 541. LIVESTOCK DEALER TRUST.

    Title III of the Packers and Stockyards Act, 1921 (7 U.S.C. 201 et 
seq.), is amended by adding at the end the following:

``SEC. 318. LIVESTOCK DEALER TRUST.

    ``(a) Findings.--Congress finds that--
            ``(1) a burden on and obstruction to commerce in livestock 
        is caused by financing arrangements under which dealers and 
        market agencies purchasing livestock on commission encumber, 
        give lenders security interests in, or have liens placed on 
        livestock purchased by the dealers and market agencies in cash 
        sales, or on receivables from or proceeds of such sales, when 
        payment is not made for the livestock; and
            ``(2) the carrying out of such arrangements is contrary to 
        the public interest.
    ``(b) Purpose.--The purpose of this section is to remedy the burden 
on and obstruction to commerce in livestock described in paragraph (1) 
and protect the public interest.
    ``(c) Definitions.--In this section:
            ``(1) Cash sale.--The term `cash sale' means a sale in 
        which the seller does not expressly extend credit to the buyer.
            ``(2) Trust.--The term `trust' means 1 or more assets of a 
        buyer that (subsequent to a cash sale of livestock) constitutes 
        the corpus of a trust held for the benefit of a seller and 
        consists of--
                    ``(A) account receivables and proceeds earned from 
                the cash sale of livestock by a dealer;
                    ``(B) account receivables and proceeds of a 
                marketing agency earned on commission from the cash 
                sale of livestock;
                    ``(C) the inventory of the dealer or marketing 
                agency; or
                    ``(D) livestock involved in the cash sale, if the 
                seller has not received payment in full for the 
                livestock and a bona fide third-party purchaser has not 
                purchased the livestock from the dealer or marketing 
                agency.
    ``(d) Holding in Trust.--
            ``(1) In general.--The account receivables and proceeds 
        generated in a cash sale made by a dealer or a market agency on 
        commission and the inventory of the dealer or market agency 
        shall be held by the dealer or market agency in trust for the 
        benefit of the seller of the livestock until the seller 
        receives payment in full for the livestock.
            ``(2) Exemption.--Paragraph (1) does not apply in the case 
        of a cash sale made by a dealer or market agency if the total 
        amount of cash sales made by the dealer or market agency during 
        the preceding 12 months does not exceed $250,000.
            ``(3) Dishonor of instrument of payment.--A payment in a 
        sale described in paragraph (1) shall not be considered to be 
        made if the instrument by which payment is made is dishonored.
            ``(4) Loss of benefit of trust.--If an instrument by which 
        payment is made in a sale described in paragraph (1) is 
        dishonored, the seller shall lose the benefit of the trust 
        under paragraph (1) on the earlier of--
                    ``(A) the date that is 15 business days after date 
                on which the seller receives notice of the dishonor; or
                    ``(B) the date that is 30 days after the final date 
                for making payment under section 409,
        unless the seller gives written notice to the dealer or market 
        agency of the seller's intention to preserve the trust and 
        submits a copy of the notice to the Secretary.
            ``(5) Rights of third-party purchaser.--The trust 
        established under paragraph (1) shall have no effect on the 
        rights of a bona fide third-party purchaser of the livestock, 
        without regard to whether the livestock are delivered to the 
        bona fide purchaser.
    ``(e) Jurisdiction.--The district courts of the United States shall 
have jurisdiction in a civil action--
            ``(1) by the beneficiary of a trust described in subsection 
        (c)(1), to enforce payment of the amount held in trust; and
            ``(2) by the Secretary, to prevent and restrain dissipation 
        of a trust described in subsection (c)(1).''.

SEC. 542. PLANTING OF ENERGY CROPS.

    (a) Feed Grains.--The first sentence of section 105B(c)(1)(F)(i) of 
the Agricultural Act of 1949 (7 U.S.C. 1444f(c)(1)(F)(i)) is amended by 
inserting ``herbaceous perennial grass, short rotation woody coppice 
species of trees, other energy crops designated by the Secretary with 
high energy content,'' after ``mung beans,''.
    (b) Wheat.--The first sentence of section 107B(c)(1)(F)(i) of the 
Agricultural Act of 1949 (7 U.S.C. 1445b-3a(c)(1)(F)(i)) is amended by 
inserting ``herbaceous perennial grass, short rotation woody coppice 
species of trees, other energy crops designated by the Secretary with 
high energy content,'' after ``mung beans,''.

SEC. 543. REIMBURSABLE AGREEMENTS.

    Section 737 of Public Law 102-142 (7 U.S.C. 2277) is amended--
            (1) by striking ``Sec. 737. Funds'' and inserting the 
        following:

``SEC. 737. SERVICES FOR APHIS PERFORMED OUTSIDE THE UNITED STATES.

    ``(a) In General.--Funds''; and
            (2) by adding at the end the following:
    ``(b) Reimbursable Agreements.--
            ``(1) In general.--The Secretary of Agriculture may enter 
        into reimbursable fee agreements with persons for preclearance 
        at locations outside the United States of plants, plant 
        products, animals, and articles for movement to the United 
        States.
            ``(2) Overtime, night, and holiday work.--Notwithstanding 
        any other law, the Secretary of Agriculture may pay an employee 
        of the Department of Agriculture preforming services relating 
        to imports into and exports from the United States for 
        overtime, night, and holiday work performed by the employee at 
        a rate of pay established by the Secretary.
            ``(3) Reimbursement.--
                    ``(A) In general.--The Secretary of Agriculture may 
                require persons for whom preclearance services are 
                performed to reimburse the Secretary for any amounts 
                paid by the Secretary for performance of the services.
                    ``(B) Crediting of funds.--All funds collected 
                under subparagraph (A) shall be credited to the account 
                that incurs the costs and shall remain available until 
                expended without fiscal year limitation.
                    ``(C) Late payment penalty.--
                            ``(i) In general.--On failure of a person 
                        to reimburse the Secretary of Agriculture for 
                        the costs of performance of preclearance 
                        services--
                                    ``(I) the Secretary may assess a 
                                late payment penalty; and
                                    ``(II) the overdue funds shall 
                                accrue interest in accordance with 
                                section 3717 of title 31, United States 
                                Code.
                            ``(ii) Crediting of funds.--Any late 
                        payment penalty and any accrued interest 
                        collected under this subparagraph shall be 
                        credited to the account that incurs the costs 
                        and shall remain available until expended 
                        without fiscal year limitation.''.

SEC. 544. SWINE HEALTH PROTECTION.

    (a) Termination of State Primary Enforcement Responsibility.--
Section 10 of the Swine Health Protection Act (7 U.S.C. 3809) is 
amended--
            (1) by redesignating subsection (c) as subsection (d); and
            (2) by inserting after subsection (b) the following:
    ``(c) Request of State Official.--
            ``(1) In general.--On request of the Governor or other 
        appropriate official of a State, the Secretary may terminate, 
        effective as soon as the Secretary determines is practicable, 
        the primary enforcement responsibility of a State under 
        subsection (a). In terminating the primary enforcement 
        responsibility under this subsection, the Secretary shall work 
        with the appropriate State official to determine the level of 
        support to be provided to the Secretary by the State under this 
        Act.
            ``(2) Reassumption.--Nothing in this subsection shall 
        prevent a State from reassuming primary enforcement 
        responsibility if the Secretary determines that the State meets 
        the requirements of subsection (a).''.
    (b) Advisory Committee.--The Swine Health Protection Act is 
amended--
            (1) by striking section 11 (7 U.S.C. 3810); and
            (2) by redesignating sections 12, 13, and 14 (7 U.S.C. 
        3811, 3812, and 3813) as sections 11, 12, and 13, respectively.

SEC. 545. COOPERATIVE WORK FOR PROTECTION, MANAGEMENT, AND IMPROVEMENT 
              OF NATIONAL FOREST SYSTEM.

    The penultimate paragraph of the matter under the heading ``FOREST 
SERVICE.'' of the first section of the Act of June 30, 1914 (38 Stat. 
430, chapter 131; 16 U.S.C. 498), is amended--
            (1) by inserting ``, management,'' after ``the 
        protection'';
            (2) by striking ``national forests,'' and inserting 
        ``National Forest System,'';
            (3) by inserting ``management,'' after ``protection,'' both 
        places it appears; and
            (4) by adding at the end the following new sentences: 
        ``Payment for work undertaken pursuant to this paragraph may be 
        made from any appropriation of the Forest Service that is 
        available for similar work if a written agreement so provides 
        and reimbursement will be provided by a cooperator in the same 
        fiscal year as the expenditure by the Forest Service. A 
        reimbursement received from a cooperator that covers the 
        proportionate share of the cooperator of the cost of the work 
        shall be deposited to the credit of the appropriation of the 
        Forest Service from which the payment was initially made or, if 
        the appropriation is no longer available to the credit of an 
        appropriation of the Forest Service that is available for 
        similar work. The Secretary of Agriculture shall establish 
        written rules that establish criteria to be used to determine 
        whether the acceptance of contributions of money under this 
        paragraph would adversely affect the ability of an officer or 
        employee of the United States Department of Agriculture to 
        carry out a duty or program of the officer or employee in a 
        fair and objective manner or would compromise, or appear to 
        compromise, the integrity of the program, officer, or employee. 
        The Secretary of Agriculture shall establish written rules that 
        protect the interests of the Forest Service in cooperative work 
        agreements.''.

SEC. 546. AMENDMENT OF THE VIRUS-SERUM TOXIN ACT OF 1913.

    The Act of March 4, 1913 (37 Stat. 828, chapter 145), is amended in 
the eighth paragraph under the heading ``BUREAU OF ANIMAL INDUSTRY'', 
commonly known as the ``Virus-Serum Toxin Act of 1913'', by striking 
the 10th sentence (21 U.S.C. 158) and inserting ``A person, firm, or 
corporation that knowingly violates any of the provisions of this 
paragraph or regulations issued under this paragraph, or knowingly 
forges, counterfeits, or, without authorization by the Secretary of 
Agriculture, uses, alters, defaces, or destroys any certificate, 
permit, license, or other document provided for in this paragraph, may, 
for each violation, after written notice and opportunity for a hearing 
on the record, be assessed a civil penalty by the Secretary of 
Agriculture of not more than $5,000, or shall, on conviction, be 
assessed a criminal penalty of not more than $10,000, imprisoned not 
more than 1 year, or both. In the course of an investigation of a 
suspected violation of this paragraph, the Secretary of Agriculture may 
issue subpoenas requiring the attendance and testimony of witnesses and 
the production of evidence that relates to the matter under 
investigation. In determining the amount of a civil penalty, the 
Secretary of Agriculture shall take into account the nature, 
circumstances, extent, and gravity of the violation, the ability of the 
violator to pay the penalty, the effect that the assessment would have 
on the ability of the violator to continue to do business, any history 
of such violations by the violator, the degree of culpability of the 
violator, and such other matters as justice may require. An order 
assessing a civil penalty shall be treated as a final order reviewable 
under chapter 158 of title 28, United State's Code. The Secretary of 
Agriculture may compromise, modify, or remit a civil penalty with or 
without conditions. The amount of a civil penalty that is paid 
(including any amount agreed on in compromise) may be deducted from any 
sums owing by the United States to the violator. The total amount of 
civil penalties assessed against a violator shall not exceed $300,000 
for all such violations adjudicated in a single proceeding. The 
validity of an order assessing a civil penalty shall not be subject to 
review in an action to collect the civil penalty. The unpaid amount of 
a civil penalty not paid in full when due shall accrue interest at the 
rate of interest applicable to civil judgments of the courts of the 
United States.''.

SEC. 547. OVERSEAS TORT CLAIMS.

    Title VII of Public Law 102-142 (105 Stat. 911) is amended by 
inserting after section 737 (7 U.S.C. 2277) the following:

``SEC. 737A. OVERSEAS TORT CLAIMS.

    ``The Secretary of Agriculture may pay a tort claim in the manner 
authorized in section 2672 of title 28, United States Code, if the 
claim arises outside the United States in connection with activities of 
individuals who are performing services for the Secretary. A claim may 
not be allowed under this section unless the claim is presented in 
writing to the Secretary within 2 years after the date on which the 
claim accrues.''.

SEC. 548. GRADUATE SCHOOL OF THE UNITED STATES DEPARTMENT OF 
              AGRICULTURE.

    (a) Purpose.--The purpose of this section is to authorize the 
continued operation of the Graduate School as a nonappropriated fund 
instrumentality of the Department of Agriculture.
    (b) Definitions.--In this section:
            (1) Board.--The term ``Board'' means the General 
        Administration Board of the Graduate School.
            (2) Department.--The term ``Department'' means the 
        Department of Agriculture.
            (3) Director.--The term ``Director'' means the Director of 
        the Graduate School.
            (4) Graduate school.--The term ``Graduate School'' means 
        the Graduate School of the United States Department of 
        Agriculture.
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.
    (c) Functions and Authority.--
            (1) In general.--The Graduate School shall continue as a 
        nonappropriated fund instrumentality of the Department under 
        the general supervision of the Secretary.
            (2) Activities.--The Graduate School shall develop and 
        administer education, training, and professional development 
        activities, including the provision of educational activities 
        for Federal agencies, Federal employees, nonprofit 
        organizations, other entities, and members of the general 
        public.
            (3) Fees.--
                    (A) In general.--The Graduate School may charge and 
                retain fair and reasonable fees for the activities that 
                it provides based on the cost of the activities to the 
                Graduate School.
                    (B) Not federal funds.--Fees under subparagraph (A) 
                shall not be considered to be Federal funds and shall 
                not required to be deposited in the Treasury of the 
                United States.
            (4) Name.--The Graduate School shall operate under the name 
        ``United States Department of Agriculture Graduate School'' or 
        such other name as the Graduate School may adopt.
    (d) General Administration Board.--
            (1) Appointment.--The Secretary shall appoint a General 
        Administration Board to serve as a governing board subject to 
        regulation by the Secretary.
            (2) Supervision.--The Graduate School shall be subject to 
        the supervision and direction of the Board.
            (3) Duties.--The Board shall--
                    (A) formulate broad policies in accordance with 
                which the Graduate School shall be administered;
                    (B) take all steps necessary to see that the 
                highest possible educational standards are maintained;
                    (C) exercise general supervision over the 
                administration of the Graduate School; and
                    (D) establish such bylaws, rules, and procedures as 
                may be necessary for the fulfillment of the duties 
                described in subparagraph (A), (B), and (C).
            (4) Director and other officers.--The Board shall select 
        the Director and such other officers as the Board may consider 
        necessary, who shall serve on such terms and perform such 
        duties as the Board may prescribe.
            (5) Borrowing.--The Board may authorize the Director to 
        borrow money on the credit of the Graduate School.
    (e) Director of the Graduate School.--
            (1) Duties.--The Director shall be responsible, subject to 
        the supervision and direction of the Board, for carrying out 
        the functions of the Graduate School.
            (2) Investment of funds.--The Board may authorize the 
        Director to invest funds held in excess of the current 
        operating requirements of the Graduate School for purposes of 
        maintaining a reasonable reserve.
    (f) Liability.--The Director and the members of the Board shall not 
be held personally liable for any loss or damage that may accrue to the 
funds of the Graduate School as the result of any act or exercise of 
discretion performed in carrying out the duties described in this 
section.
    (g) Employees.--Employees of the Graduate School are employees of a 
nonappropriated fund instrumentality and shall not be considered to be 
Federal employees.
    (h) Not a Federal Agency.--The Graduate School shall not be 
considered to be a Federal Agency for purposes of--
            (1) chapter 171 of title 28, United States Code;
            (2) section 552 or 552a of title 28, United States Code; or
            (3) the Federal Advisory Committee Act (5 U.S.C. App.).
    (i) Acceptance of Donations.--The Graduate School shall not accept 
a donation from a person that is actively engaged in a procurement 
activity with the Graduate School or has an interest that may be 
substantially affected by the performance or nonperformance of an 
official duty of a member of the Board or an employee of the Graduate 
School.
    (j) Administrative Provisions.--In order to carry out the functions 
of the Graduate School, the Graduate School may--
            (1) accept, use, hold, dispose, and administer gifts, 
        bequests, or devises of money, securities, and other real or 
        personal property made for the benefit of, or in connection 
        with, the Graduate School;
            (2) notwithstanding any other law--
                    (A) acquire real property in the District of 
                Columbia and in other places by lease, purchase, or 
                otherwise;
                    (B) maintain, enlarge, or remodel any such 
                property; and
                    (C) have sole control of any such property;
            (3) enter into contracts without regard to the Federal 
        Property and Administrative Services Act of 1949 (40 U.S.C. 
        471) or any other law that prescribes procedures for the 
        procurement of property or services by an executive agency;
            (4) dispose of real and personal property without regard to 
        the requirements of the Federal Property and Administrative 
        Services Act of 1949 (40 U.S.C. 471); and
            (5) use the facilities and resources of the Department, on 
        the condition that any costs incurred by the Department that 
        are attributable solely to Graduate School operations and all 
        costs incurred by the Graduate School arising out of such 
        operations shall be borne by the fees paid by or on behalf of 
        students or by other means and not with Federal funds.

SEC. 549. STUDENT INTERN SUBSISTENCE PROGRAM.

    (a) Definition.--In this section, the term ``student intern'' means 
a person who--
            (1) is employed by the Department of Agriculture to assist 
        scientific, professional, administrative, or technical 
        employees of the Department; and
            (2) is a student in good standing at an accredited college 
        or university pursuing a course of study related to the field 
        in which the person is employed by the Department.
    (b) Payment of Certain Expenses by the Secretary.--The Secretary of 
Agriculture may, out of user fee funds or funds appropriated to any 
agency, pay for lodging expenses, subsistence expenses, and 
transportation expenses of a student intern (including expenses of 
transportation to and from the student intern's residence at or near 
the college or university attended by the student intern and the 
official duty station at which the student intern is employed).

SEC. 550. CONVEYANCE OF LAND TO WHITE OAK CEMETERY.

    (a) In General.--
            (1) Release of interest.--After execution of the agreement 
        described in subsection (b), the Secretary of Agriculture shall 
        release the condition stated in the deed on the land described 
        in subsection (c) that the land be used for public purposes, 
        and that if the land is not so used, that the land revert the 
        United States, on the condition that the land be used 
        exclusively for cemetery purposes, and that if the land is not 
        so used, that the land revert the United States.
            (2) Bankhead-jones act.--Section 32(c) of the Bankhead-
        Jones Farm Tenant Act (7 U.S.C. 1011(c)) shall not apply to the 
        release under paragraph (1).
    (b) Agreement.--The Secretary of Agriculture shall make the release 
under in subsection (a) on execution by the Board of Trustees of the 
University of Arkansas, in consideration of the release, of an 
agreement, satisfactory to the Secretary of Agriculture, that--
            (1) the Board of Trustees will not sell, lease, exchange, 
        or otherwise dispose of the land described in subsection (c) 
        except to the White Oak Cemetery Association of Washington 
        County, Arkansas, or a successor organization, for exclusive 
        use for an expansion of the cemetery maintained by the 
        Association; and
            (2) the proceeds of such a disposition of the land will be 
        deposited and held in an account open to inspection by the 
        Secretary of Agriculture, and used, if withdrawn from the 
        account, for public purposes.
    (c) Land Description.--The land described in this subsection is the 
land conveyed to the Board of Trustees of the University of Arkansas, 
with certain other land, by deed dated November 18, 1953, comprising 
approximately 2.2 acres located within property of the University of 
Arkansas in Washington, County, Arkansas, commonly known as the ``Savor 
property'' and described as follows:
            The part of Section 20, Township 17 north, range 31 west, 
        beginning at the north corner of the White Oak Cemetery and the 
        University of Arkansas Agricultural Experiment Station farm at 
        Washington County road #874, running west approximately 330 
        feet, thence south approximately 135 feet, thence southeast 
        approximately 384 feet, thence north approximately 330 feet to 
        the point of beginning.

SEC. 551. ADVISORY BOARD ON AGRICULTURAL AIR QUALITY.

    (a) Findings.--Congress finds that--
            (1) various studies have identified agriculture as a major 
        atmospheric polluter;
            (2) Federal research activities are underway to determine 
        the extent of the pollution problem and the extent of the role 
        of agriculture in the problem; and
            (3) any Federal policy decisions that may result, and any 
        Federal regulations that may be imposed on the agricultural 
        sector, should be based on sound scientific findings;
    (b) Purpose.--The purpose of this section is to establish an 
advisory board to assist and provide the Secretary of Agriculture with 
information, analyses, and policy recommendations for determining 
matters of fact and technical merit and addressing scientific questions 
dealing with particulate matter less than 10 microns that become lodged 
in human lungs (known as ``PM10'') and other airborne particulate 
matter or gases that affect agricultural production yields and the 
economy.
    (c) Establishment.--
            (1) In general.--The Secretary of Agriculture may establish 
        a board to be known as the ``Advisory Board on Agricultural Air 
        Quality'' (referred to in this section as the ``Board'') to 
        advise the Secretary, through the Chief of the Natural 
        Resources Conservation Service, with respect to carrying out 
        this act and obligations agriculture incurred under the Clean 
        Air Act (42 U.S.C. 7401 et seq.) and the Act entitled `An Act 
        to amend the Clean Air Act to provide for attainment and 
        maintenance of health protective national ambient air quality 
        standards, and for other purposes', approved November 15, 1990 
        (commonly known as the `Clean Air Act Amendments of 1990') (42 
        U.S.C. 7401 et seq.).
            (2) Oversight coordination.--The Secretary of Agriculture 
        shall provide oversight and coordination with respect to other 
        Federal departments and agencies to ensure intergovernmental 
        cooperation in research activities and to avoid duplication of 
        Federal efforts.
    (d) Composition.--
            (1) In general.--The Board shall be composed of at least 17 
        members appointed by the Secretary in consultation with the 
        Administrator of the Environmental Protection Agency.
            (2) Regional representation.--The membership of the Board 
        shall be 2 persons from each of the 6 regions of the Natural 
        Resources Conservation Service, of whom 1 from each region 
        shall be an agricultural producer.
            (3) Atmospheric scientist.--At least 1 member of the Board 
        shall be an atmospheric scientist.
    (e) Chairperson.--The Chief of the Natural Resources Conservation 
Service shall--
            (1) serve as chairman of the Board; and
            (2) provide technical support to the Board.
    (f) Term.--Each member of the Board shall be appointed for a 3-year 
term, except that the Secretary of Agriculture shall appoint 4 of the 
initial members for a term of 1 year and 4 for a term of 2 years.
    (g) Meetings.--The Board shall meet not less than twice annually.
    (h) Compensation.--Members of the Board shall serve without 
compensation, but while away from their homes or regular place of 
business in performance of services for the Board, members of the Board 
shall be allowed travel expenses, including a per diem allowance in 
lieu of subsistence, in the same manner as persons employed in 
Government service are allowed travel expenses under section 5703 of 
title 5, United States Code.
    (i) Funding.--The Board shall be funded using appropriations for 
conservation operations.

SEC. 552. WATER SYSTEMS FOR RURAL AND NATIVE VILLAGES IN ALASKA.

    The Consolidated Farm and Rural Development Act is amended by 
inserting after section 306C (7 U.S.C. 1926c) the following:

``SEC. 306D. WATER SYSTEMS FOR RURAL AND NATIVE VILLAGES IN ALASKA.

    ``(a) In General.--The Secretary may make grants to the State of 
Alaska for the benefit of rural or Native villages in Alaska to provide 
for the development and construction of water and wastewater systems to 
improve the health and sanitation conditions in those villages.
    ``(b) Matching Funds.--To be eligible to receive a grant under 
subsection (a), the State of Alaska shall provide equal matching funds 
from non-Federal sources.
    ``(c) Consultation with the State of Alaska.--The Secretary shall 
consult with the State of Alaska on a method of prioritizing the 
allocation of grants under subsection (a) according to the needs of, 
and relative health and sanitation conditions in, each village.
    ``(d) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $15,000,000 for each of fiscal 
years 1996 through 2002.''.

SEC. 553. ELIGIBILITY FOR GRANTS TO BROADCASTING SYSTEMS.

    Section 310B(j) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1932(j)) is amended by striking ``Systems.--The'' and 
inserting the following: ``Systems.--
            ``(1) Definition of statewide.--In this subsection, the 
        term `statewide' means having a coverage area of not less than 
        90 percent of the population of a State and 80 percent of the 
        rural land area of the State (as determined by the Secretary).
            ``(2) Grants.--The''.

SEC. 554. WILDLIFE HABITAT INCENTIVES PROGRAM.

    (a) In General.--The Secretary of Agriculture, in consultation with 
the State Technical Committee, shall establish a program in the Natural 
Resources Conservation Service to be known as the Wildlife Habitat 
Incentive Program.
    (b) Cost-Share Payments.--The Program shall make cost-share 
payments to landowners to develop upland wildlife, wetland wildlife, 
threatened and endangered species, fisheries, and other types of 
wildlife habitat approved by the Secretary.
    (c) Funding.--To carry out this section, $10,000,000 shall be made 
available for each of fiscal years 1996 through 2002 from funds made 
available to carry out subchapter B of chapter 1 of subtitle D of title 
XII of the Food Security Act of 1985 (16 U.S.C. 3831 et seq.).

SEC. 555. INDIAN RESERVATIONS.

    (a) Indian Reservation Extension Agent Program.--
            (1) Reauthorization.--The program established under section 
        1677 of the Food, Agriculture, Conservation, and Trade Act of 
        1990 (7 U.S.C. 5930) is reauthorized through fiscal year 2002.
            (2) Reduced regulatory burden.--On a determination by the 
        Secretary of Agriculture that a program carried out under 
        section 1677 of the Act (7 U.S.C. 5930) has been satisfactorily 
        administered for not less than 2 years, the Secretary shall 
        implement a reduced re-application process for the continued 
        operation of the program in order to reduce regulatory burdens 
        on participating university and tribal entities.
    (b) Memorandum of Agreement.--
            (1) In general.--Not later than January 6, 1997, the 
        Secretary shall develop and implement a formal Memorandum of 
        Agreement with the 29 tribally controlled colleges eligible 
        under Federal law to receive funds from the Secretary of 
        Agriculture as partial land grant institutions.
            (2) Equitable participation.--The Memorandum shall 
        establish programs to ensure that tribally-controlled colleges 
        and Native American communities equitably participate in 
        Department of Agriculture employment programs, services, and 
        resources.

SEC. 556. ICD REIMBURSEMENT FOR OVERHEAD EXPENSES.

    Section 1542(d)(1)(D) of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (Public Law 101-624;7 U.S.C. 5622 note) is amended by 
adding at the end the following: ``Notwithstanding any other provision 
of law, the assistance shall include assistance for administrative and 
overhead expenses, to the extent that the expenses were incurred 
pursuant to reimbursable agreements entered into prior to September 30, 
1993, the expenses do not exceed $2,000,000 per year, and the expenses 
were not incurred for information technology systems.''.

SEC. 557. CLARIFICATION OF EFFECT OF RESOURCE PLANNING ON ALLOCATION OR 
              USE OF WATER.

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

                            TITLE VI--CREDIT

                    Subtitle A--Agricultural Credit

                    CHAPTER 1--FARM OWNERSHIP LOANS

SEC. 601. LIMITATION ON DIRECT FARM OWNERSHIP LOANS.

    Section 302 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1922) is amended by striking subsection (b) and inserting the 
following:
    ``(b) Direct Loans.--
            ``(1) In general.--Subject to paragraph (3), the Secretary 
        may only make a direct loan under this subtitle to a farmer or 
        rancher who has operated a farm or ranch for not less than 3 
        years and--
                    ``(A) is a qualified beginning farmer or rancher;
                    ``(B) has not received a previous direct farm 
                ownership loan made under this subtitle; or
                    ``(C) has not received a direct farm ownership loan 
                under this subtitle more than 10 years before the date 
                the new loan would be made.
            ``(2) Youth Loans.--The operation of an enterprise by a 
        youth under section 311(b) shall not be considered the 
        operation of a farm or ranch for purposes of paragraph (1).
            ``(3) Transition Rule.--
                    ``(A) In general.--Subject to subparagraphs (B) and 
                (C), paragraph (1) shall not apply to a farmer or 
                rancher who has a direct loan outstanding under this 
                subtitle on the date of enactment of this paragraph.
                    ``(B) Less than 5 years.--If, as of the date of 
                enactment of this paragraph, a farmer or rancher has 
                had a direct loan outstanding under this subtitle for 
                less than 5 years, the Secretary shall not make another 
                loan to the farmer or rancher under this subtitle after 
                the date that is 10 years after the date of enactment 
                of this paragraph.
                    ``(C) 5 years or more.--If, as of the date of 
                enactment of this paragraph, a farmer or rancher has 
                had a direct loan outstanding under this subtitle for 5 
                years or more, the Secretary shall not make another 
                loan to the farmer or rancher under this subtitle after 
                the date that is 5 years after the date of enactment of 
                this paragraph.''.

SEC. 602. PURPOSES OF LOANS.

    Section 303 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1923) is amended to read as follows:

``SEC. 303. PURPOSES OF LOANS.

    ``(a) Allowed Purposes.--
            ``(1) Direct loans.--A farmer or rancher may use a direct 
        loan made under this subtitle only for--
                    ``(A) acquiring or enlarging a farm or ranch;
                    ``(B) making capital improvements to a farm or 
                ranch;
                    ``(C) paying loan closing costs related to 
                acquiring, enlarging, or improving a farm or ranch; or
                    ``(D) paying for activities to promote soil and 
                water conservation and protection under section 304 on 
                the farm or ranch.
            ``(2) Guaranteed loans.--A farmer or rancher may use a loan 
        guaranteed under this subtitle only for--
                    ``(A) acquiring or enlarging a farm or ranch;
                    ``(B) making capital improvements to a farm or 
                ranch;
                    ``(C) paying loan closing costs related to 
                acquiring, enlarging, or improving a farm or ranch;
                    ``(D) paying for activities to promote soil and 
                water conservation and protection under section 304 on 
                the farm or ranch; or
                    ``(E) refinancing indebtedness.
    ``(b) Preferences.--In making or guaranteeing a loan for farm or 
ranch purchase, the Secretary shall give a preference to a person who--
            ``(1) has a dependent family;
            ``(2) to the extent practicable, is able to make an initial 
        down payment; or
            ``(3) is an owner of livestock or farm or ranch equipment 
        that is necessary to successfully carry out farming or ranching 
        operations.
    ``(c) Hazard Insurance Requirement.--
            ``(1) In general.--The Secretary may not make a loan to a 
        farmer or rancher under this subtitle unless the farmer or 
        rancher has, or agrees to obtain, hazard insurance on any real 
        property to be acquired or improved with the loan.
            ``(2) Determination.--Not later than 180 days after the 
        date of enactment of this subsection, the Secretary shall 
        determine the appropriate level of insurance to be required 
        under paragraph (1).
            ``(3) Transitional provision.--Paragraph (1) shall not 
        apply until the Secretary makes the determination required 
        under paragraph (2).''.

SEC. 603. SOIL AND WATER CONSERVATION AND PROTECTION.

    Section 304 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1924) is amended--
            (1) by striking subsections (b) and (c);
            (2) by striking ``Sec. 304. (a)(1) Loans'' and inserting 
        the following:

``SEC. 304. SOIL AND WATER CONSERVATION AND PROTECTION.

    ``(a) In General.--Loans'';
            (3) by striking ``(2) In making or insuring'' and inserting 
        the following:
    ``(b) Priority.--In making or guaranteeing'';
            (4) by striking ``(3) The Secretary'' and inserting the 
        following:
    ``(c) Loan Maximum.--The Secretary'';
            (5) by redesignating subparagraphs (A) through (F) of 
        subsection (a) (as amended by paragraph (2)) as paragraphs (1) 
        through (6), respectively; and
            (6) by redesignating subparagraphs (A) and (B) of 
        subsection (c) (as amended by paragraph (4)) as paragraphs (1) 
        and (2), respectively.

SEC. 604. INTEREST RATE REQUIREMENTS.

    Section 307(a)(3) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1927(a)(3)) is amended--
            (1) in subparagraph (B), by inserting ``subparagraph (D) 
        and in'' after ``Except as provided in''; and
            (2) by adding at the end the following:
            ``(D) Joint financing arrangement.--If a direct farm 
        ownership loan is made under this subtitle as part of a joint 
        financing arrangement and the amount of the direct farm 
        ownership loan does not exceed 50 percent of the total 
        principal amount financed under the arrangement, the interest 
        rate on the direct farm ownership loan shall be 4 percent 
        annually.''.

SEC. 605. INSURANCE OF LOANS.

    Section 308 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1928) is amended to read as follows:

``SEC. 308. FULL FAITH AND CREDIT.

    ``(a) In General.--A contract of insurance or guarantee executed by 
the Secretary under this title shall be an obligation supported by the 
full faith and credit of the United States.
    ``(b) Contestability.--A contract of insurance or guarantee 
executed by the Secretary under this title shall be incontestable 
except for fraud or misrepresentation that the lender or any holder--
            ``(1) has actual knowledge of at the time the contract or 
        guarantee is executed; or
            ``(2) participates in or condones.''.

SEC. 606. LOANS GUARANTEED.

    Section 309(h) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1929(h)) is amended by adding at the end the following:
            ``(4) Maximum guarantee of 90 percent.--Except as provided 
        in paragraph (5), a loan guarantee under this title shall be 
        for not more than 90 percent of the principal and interest due 
        on the loan.
            ``(5) Refinanced loans guaranteed at 95 percent.--The 
        Secretary shall guarantee 95 percent of--
                    ``(A) in the case of a loan that solely refinances 
                a direct loan made under this title, the principal and 
                interest due on the loan on the date of the 
                refinancing; or
                    ``(B) in the case of a loan that is used for 
                multiple purposes, the portion of the loan that 
                refinances the principal and interest due on a direct 
                loan made under this title that is outstanding on the 
                date the loan is guaranteed.
            ``(6) Beginning farmer loans guaranteed up to 95 percent.--
        The Secretary may guarantee up to 95 percent of--
                    ``(A) a farm ownership loan for acquiring a farm or 
                ranch to a borrower who is participating in the down 
                payment loan program under section 310E; or
                    ``(B) an operating loan to a borrower who is 
                participating in the down payment loan program under 
                section 310E that is made during the period that the 
                borrower has a direct loan for acquiring a farm or 
                ranch.''.

                       CHAPTER 2--OPERATING LOANS

SEC. 611. LIMITATION ON DIRECT OPERATING LOANS.

    (a) In General.--Section 311 of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1941) is amended by striking subsection (c) 
and inserting the following:
    ``(c) Direct Loans.--
            ``(1) In general.--Subject to paragraph (3), the Secretary 
        may only make a direct loan under this subtitle to a farmer or 
        rancher who--
                    ``(A) is a qualified beginning farmer or rancher 
                who has not operated a farm or ranch, or who has 
                operated a farm or ranch for not more than 5 years;
                    ``(B) has not had a previous direct operating loan 
                under this subtitle; or
                    ``(C) has not had a previous direct operating loan 
                under this subtitle for more than 7 years.
            ``(2) Youth Loans.--In this subsection, the term `direct 
        operating loan' shall not include a loan made to a youth under 
        subsection (b).
            ``(3) Transition Rule.--If, as of the date of enactment of 
        this paragraph, a farmer or rancher has received a direct 
        operating loan under this subtitle during each of 4 or more 
        previous years, the borrower shall be eligible to receive a 
        direct operating loan under this subtitle during 3 additional 
        years after the date of enactment of this paragraph.''.
    (b) Youth Enterprises Not Farming or Ranching.--Section 311(b) of 
the Consolidated Farm and Rural Development Act (7 U.S.C. 1941(b)) is 
amended by adding at the end the following:
            ``(4) Youth enterprises not farming or ranching.--The 
        operation of an enterprise by a youth under this subsection 
        shall not be considered the operation of a farm or ranch under 
        this title.''.

SEC. 612. PURPOSES OF OPERATING LOANS.

    Section 312 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1942) is amended to read as follows:

``SEC. 312. PURPOSES OF LOANS.

    ``(a) In General.--A direct loan may be made under this subtitle 
only for--
            ``(1) paying the costs incident to reorganizing a farming 
        or ranching system for more profitable operation;
            ``(2) purchasing livestock, poultry, or farm or ranch 
        equipment;
            ``(3) purchasing feed, seed, fertilizer, insecticide, or 
        farm or ranch supplies, or to meet other essential farm or 
        ranch operating expenses, including cash rent;
            ``(4) financing land or water development, use, or 
        conservation;
            ``(5) paying loan closing costs;
            ``(6) assisting a farmer or rancher in effecting an 
        addition to, or alteration of, the equipment, facilities, or 
        methods of operation of a farm or ranch to comply with a 
        standard promulgated under section 6 of the Occupational Safety 
        and Health Act of 1970 (29 U.S.C. 655) or a standard adopted by 
        a State under a plan approved under section 18 of the Act (29 
        U.S.C. 667), if the Secretary determines that without 
        assistance under this paragraph the farmer or rancher is likely 
        to suffer substantial economic injury due to compliance with 
        the standard;
            ``(7) training a limited-resource borrower receiving a loan 
        under section 310D in maintaining records of farming and 
        ranching operations;
            ``(8) training a borrower under section 359;
            ``(9) refinancing the indebtedness of a borrower if the 
        borrower--
                    ``(A) has refinanced a loan under this subtitle not 
                more than 4 times previously; and
                    ``(B)(i) is a direct loan borrower under this title 
                at the time of the refinancing and has suffered a 
                qualifying loss because of a natural disaster declared 
                by the Secretary under this title or a major disaster 
                or emergency designated by the President under the 
                Robert T. Stafford Disaster Relief and Emergency 
                Assistance Act (42 U.S.C. 5121 et seq.); or
                    ``(ii) is refinancing a debt obtained from a 
                creditor other than the Secretary; or
            ``(10) providing other farm, ranch, or home needs, 
        including family subsistence.
    ``(b) Guaranteed Loans.--A loan may be guaranteed under this 
subtitle only for--
            ``(1) paying the costs incident to reorganizing a farming 
        or ranching system for more profitable operation;
            ``(2) purchasing livestock, poultry, or farm or ranch 
        equipment;
            ``(3) purchasing feed, seed, fertilizer, insecticide, or 
        farm or ranch supplies, or to meet other essential farm or 
        ranch operating expenses, including cash rent;
            ``(4) financing land or water development, use, or 
        conservation;
            ``(5) refinancing indebtedness;
            ``(6) paying loan closing costs;
            ``(7) assisting a farmer or rancher in effecting an 
        addition to, or alteration of, the equipment, facilities, or 
        methods of operation of a farm or ranch to comply with a 
        standard promulgated under section 6 of the Occupational Safety 
        and Health Act of 1970 (29 U.S.C. 655) or a standard adopted by 
        a State under a plan approved under section 18 of the Act (29 
        U.S.C. 667), if the Secretary determines that without 
        assistance under this paragraph the farmer or rancher is likely 
        to suffer substantial economic injury due to compliance with 
        the standard;
            ``(8) training a borrower under section 359; or
            ``(9) providing other farm, ranch, or home needs, including 
        family subsistence.
    ``(c) Hazard Insurance Requirement.--
            ``(1) In general.--The Secretary may not make a loan to a 
        farmer or rancher under this subtitle unless the farmer or 
        rancher has, or agrees to obtain, hazard insurance on any 
        property to be acquired with the loan.
            ``(2) Determination.--Not later than 180 days after the 
        date of enactment of this paragraph, the Secretary shall 
        determine the appropriate level of insurance to be required 
        under paragraph (1).
            ``(3) Transitional provision.--Paragraph (1) shall not 
        apply until the Secretary makes the determination required 
        under paragraph (2).
    ``(d) Private Reserve.--
            ``(1) In general.--Notwithstanding any other provision of 
        this title, the Secretary may reserve the lesser of 10 percent 
        or $5,000 of the amount of a direct loan made under this 
        subtitle, to be placed in a nonsupervised bank account that may 
        be used at the discretion of the borrower for any necessary 
        family living need or purpose that is consistent with any 
        farming or ranching plan agreed to by the Secretary and the 
        borrower prior to the date of the loan.
            ``(2) Adjustment of reserve.--If a borrower exhausts the 
        amount of funds reserved under paragraph (1), the Secretary 
        may--
                    ``(A) review and adjust the farm or ranch plan 
                referred to in paragraph (1) with the borrower and 
                reschedule the loan;
                    ``(B) extend additional credit;
                    ``(C) use income proceeds to pay necessary farm, 
                ranch, home, or other expenses; or
                    ``(D) provide additional available loan 
                servicing.''.

SEC. 613. PARTICIPATION IN LOANS.

    Section 315 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1945) is repealed.

SEC. 614. LINE-OF-CREDIT LOANS.

    Section 316 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1946) is amended by adding at the end the following:
    ``(c) Line-of-Credit Loans.--
            ``(1) In general.--A loan made or guaranteed by the 
        Secretary under this subtitle may be in the form of a line-of-
        credit loan.
            ``(2) Term.--A line-of-credit loan under paragraph (1) 
        shall terminate not later than 5 years after the date that the 
        loan is made or guaranteed.
            ``(3) Eligibility.--For purposes of determining eligibility 
        for a farm operating loan, each year in which a farmer or 
        rancher takes an advance or draws on a line-of-credit loan the 
        farmer or rancher shall be considered to have received an 
        operating loan for 1 year.''.

SEC. 615. INSURANCE OF OPERATING LOANS.

    Section 317 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1947) is repealed.

SEC. 616. SPECIAL ASSISTANCE FOR BEGINNING FARMERS AND RANCHERS.

    (a) In General.--Section 318 of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1948) is repealed.
    (b) Conforming Amendment.--Section 310F of the Consolidated Farm 
and Rural Development Act (7 U.S.C. 1936) is repealed.

SEC. 617. LIMITATION ON PERIOD FOR WHICH BORROWERS ARE ELIGIBLE FOR 
              GUARANTEED ASSISTANCE.

    Section 319 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1949) is amended by striking subsection (b) and inserting the 
following:
    ``(b) Limitation on Period Borrowers Are Eligible for Guaranteed 
Assistance.--
            ``(1) General rule.--Subject to paragraph (2), the 
        Secretary shall not guarantee a loan under this subtitle for a 
        borrower for any year after the 15th year that a loan is made 
        to, or a guarantee is provided with respect to, the borrower 
        under this subtitle.
            ``(2) Transition rule.--If, as of October 28, 1992, a 
        farmer or rancher has received a direct or guaranteed operating 
        loan under this subtitle during each of 10 or more previous 
        years, the borrower shall be eligible to receive a guaranteed 
        operating loan under this subtitle during 5 additional years 
        after October 28, 1992.''.

                       CHAPTER 3--EMERGENCY LOANS

SEC. 621. HAZARD INSURANCE REQUIREMENT.

    Section 321 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1961) is amended by striking subsection (b) and inserting the 
following:
    ``(b) Hazard Insurance Requirement.--
            ``(1) In general.--The Secretary may not make a loan to a 
        farmer or rancher under this subtitle to cover a property loss 
        unless the farmer or rancher had hazard insurance that insured 
        the property at the time of the loss.
            ``(2) Determination.--Not later than 180 days after the 
        date of enactment of this paragraph, the Secretary shall 
        determine the appropriate level of insurance to be required 
        under paragraph (1).
            ``(3) Transitional provision.--Paragraph (1) shall not 
        apply until the Secretary makes the determination required 
        under paragraph (2).''.

SEC. 622. MAXIMUM EMERGENCY LOAN INDEBTEDNESS.

    Section 324 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1964) is amended by striking ``Sec. 324. (a) No loan'' and all 
that follows through the end of subsection (a) and inserting the 
following:

``SEC. 324. TERMS OF LOANS.

    ``(a) Maximum Amount of Loan.--The Secretary may not make a loan 
under this subtitle that--
            ``(1) exceeds the actual loss caused by a disaster; or
            ``(2) would cause the total indebtedness of the borrower 
        under this subtitle to exceed $500,000.''.

SEC. 623. INSURANCE OF EMERGENCY LOANS.

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

                  CHAPTER 4--ADMINISTRATIVE PROVISIONS

SEC. 631. USE OF COLLECTION AGENCIES.

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

SEC. 632. NOTICE OF LOAN SERVICE PROGRAMS.

    Section 331D(a) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1981d(a)) is amended by striking ``180 days delinquent in'' 
and inserting ``90 days past due on''.

SEC. 633. SALE OF PROPERTY.

    Section 335 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1985) is amended--
            (1) in subsection (b), by striking ``subsection (e)'' and 
        inserting ``subsections (c) and (e)'';
            (2) by striking subsection (c) and inserting the following:
    ``(c) Sale of Property.--
            ``(1) In general.--Subject to this subsection and 
        subsection (e)(1)(A), the Secretary shall offer to sell real 
        property that is acquired by the Secretary under this title in 
        the following order and method of sale:
                    ``(A) Advertisement.--Not later than 15 days after 
                acquiring real property, the Secretary shall publicly 
                advertise the property for sale.
                    ``(B) Beginning farmer or rancher.--
                            ``(i) In general.--Not later than 75 days 
                        after acquiring real property, the Secretary 
                        shall attempt to sell the property to a 
                        qualified beginning farmer or rancher at 
                        current market value based on a current 
                        appraisal.
                            ``(ii) Random selection.--If more than 1 
                        qualified beginning farmer or rancher offers to 
                        purchase the property, the Secretary shall 
                        select between the qualified applicants on a 
                        random basis.
                            ``(iii) Appeal of random selection.--A 
                        random selection or denial by the Secretary of 
                        a beginning farmer or rancher for farm 
                        inventory property under this subparagraph 
                        shall be final and not administratively 
                        appealable.
                    ``(C) Public sale.--If no acceptable offer is 
                received from a qualified beginning farmer or rancher 
                under subparagraph (B) within 75 days of acquiring the 
                real property, the Secretary shall, within 30 days, 
                sell the property after public notice at a public sale, 
                and, if no acceptable bid is received, by negotiated 
                sale, at the best price obtainable.
            ``(2) Transitional rules.--
                    ``(A) Previous lease.--In the case of real property 
                acquired prior to the date of enactment of this 
                subparagraph that the Secretary leased prior to the 
                date of enactment of this subparagraph, the Secretary 
                shall offer to sell the property according to paragraph 
                (1) not later than 60 days after the lease expires.
                    ``(B) Previously in inventory.--In the case of real 
                property acquired prior to the date of enactment of 
                this subparagraph that the Secretary has not leased, 
                the Secretary shall offer to sell the property 
                according to paragraph (1) not later than 60 days after 
                the date of enactment of this subparagraph.
            ``(3) Interest.--
                    ``(A) In general.--Subject to subparagraph (B), any 
                conveyance under this subsection shall include all of 
                the interest of the United States, including mineral 
                rights.
                    ``(B) Conservation.--The Secretary may for 
                conservation purposes grant or sell an easement, 
                restriction, development right, or similar legal right 
                to a State, a political subdivision of a State, or a 
                private nonprofit organization separately from the 
                underlying fee or other rights owned by the Secretary.
            ``(4) Other law.--This title shall not be subject to the 
        Federal Property and Administrative Services Act of 1949 (40 
        U.S.C. 471 et seq.).
            ``(5) Lease of property.--
                    ``(A) In general.--Subject to subparagraph (B), the 
                Secretary may not lease any real property acquired 
                under this title.
                    ``(B) Exception.--
                            ``(i) Beginning farmer or rancher.--
                        Notwithstanding paragraph (1), the Secretary 
                        may lease or contract to sell a farm or ranch 
                        acquired by the Secretary under this title to a 
                        beginning farmer or rancher if the beginning 
                        farmer or rancher qualifies for a credit sale 
                        or direct farm ownership loan but credit sale 
                        authority for loans or direct farm ownership 
                        funds, respectively, are not available.
                            ``(ii) Term.--A lease or contract to sell 
                        to a beginning farmer or rancher under clause 
                        (i) shall be until the earlier of--
                                    ``(I) the date that is 18 months 
                                after the date of the lease or sale; or
                                    ``(II) the date that direct farm 
                                ownership loan funds or credit sale 
                                authority for loans become available to 
                                the beginning farmer or rancher.
                            ``(iii) Income-producing capability.--In 
                        determining the rental rate on real property 
                        leased under this subparagraph, the Secretary 
                        shall consider the income-producing capability 
                        of the property during the term that the 
                        property is leased.
            ``(6) Determination by secretary.--
                    ``(A) Expedited review.--On the request of an 
                applicant, the Secretary shall provide within 30 days 
                of denial of the applicant's application for an 
                expedited review by the appropriate State Director of 
                whether the applicant is a beginning farmer or rancher 
                for the purpose of acquiring farm inventory property.
                    ``(B) Appeal.--The results of a review conducted by 
                a State Director under subparagraph (A) shall be final 
                and not administratively appealable.
                    ``(C) Effects of review.--
                            ``(i) In general.--The Secretary shall 
                        maintain statistical data on the number and 
                        results of reviews conducted under subparagraph 
                        (A) and whether the reviews adversely impact 
                        on--
                                    ``(I) selling farm inventory 
                                property to beginning farmers and 
                                ranchers; and
                                    ``(II) disposing of real property 
                                in inventory.
                            ``(ii) Notification.--The Secretary shall 
                        notify the Committee on Agriculture of the 
                        House of Representatives and the Committee on 
                        Agriculture, Nutrition, and Forestry of the 
                        Senate if the Secretary determines that reviews 
                        under subparagraph (A) are adversely impacting 
                        the selling of farm inventory property to 
                        beginning farmers or ranchers or on disposing 
                        of real property in inventory.''; and
            (3) in subsection (e)--
                    (A) in paragraph (1)--
                            (i) by striking subparagraphs (A) through 
                        (C);
                            (ii) by redesignating subparagraphs (D) 
                        through (G) as subparagraphs (A) through (D), 
                        respectively;
                            (iii) in subparagraph (A) (as redesignated 
                        by clause (ii))--
                                    (I) in clause (i)--
                                            (aa) in the matter 
                                        preceding subclause (I), by 
                                        striking ``(G)'' and inserting 
                                        ``(D)'';
                                            (bb) by striking subclause 
                                        (I) and inserting the 
                                        following:
            ``(I) the Secretary acquires property under this title that 
        is located within an Indian reservation; and'';
                                            (cc) in subclause (II), by 
                                        striking ``, and'' at the end 
                                        and inserting a semicolon; and
                                            (dd) by striking subclause 
                                        (III); and
                                    (II) in clause (iii), by striking 
                                ``The Secretary shall'' and all that 
                                follows through ``of subparagraph 
                                (A),'' and inserting ``Not later than 
                                90 days after acquiring the property, 
                                the Secretary shall''; and
                            (iv) in subparagraph (D) (as redesignated 
                        by clause (ii))--
                                    (I) in clause (i), by striking 
                                ``(D)'' in the matter following 
                                subclause (IV) and inserting ``(A)'';
                                    (II) in clause (iii)(I), by 
                                striking ``subparagraphs (C)(i), 
                                (C)(ii), and (D)'' and inserting 
                                ``subparagraph (A)''; and
                                    (III) by striking clause (v) and 
                                inserting the following:
                            ``(v) Foreclosure procedures.--
                                    ``(I) Notice to borrower.--If a 
                                borrower-owner does not voluntarily 
                                convey to the Secretary real property 
                                described in clause (i), not less than 
                                30 days before a foreclosure sale of 
                                the property the Secretary shall 
                                provide the Indian borrower-owner with 
                                the option of--
                                            ``(aa) requiring the 
                                        Secretary to assign the loan 
                                        and security instruments to the 
                                        Secretary of the Interior, 
                                        provided the Secretary of the 
                                        Interior agrees to the 
                                        assignment, releasing the 
                                        Secretary of Agriculture from 
                                        all further responsibility for 
                                        collection of any amounts with 
                                        regard to the loan secured by 
                                        the real property; or
                                            ``(bb) requiring the 
                                        Secretary to assign the loan 
                                        and security instruments to the 
                                        tribe having jurisdiction over 
                                        the reservation in which the 
                                        real property is located, 
                                        provided the tribe agrees to 
                                        the assignment.
                                    ``(II) Notice to tribe.--If a 
                                borrower-owner does not voluntarily 
                                convey to the Secretary real property 
                                described in clause (i), not less than 
                                30 days before a foreclosure sale of 
                                the property the Secretary shall 
                                provide written notice to the Indian 
                                tribe that has jurisdiction over the 
                                reservation in which the real property 
                                is located of--
                                            ``(aa) the sale;
                                            ``(bb) the fair market 
                                        value of the property; and
                                            ``(cc) the requirements of 
                                        this subparagraph.
                                    ``(III) Assumed Loans.--If an 
                                Indian tribe assumes a loan under 
                                subclause (I)--
                                            ``(aa) the Secretary shall 
                                        not foreclose the loan because 
                                        of any default that occurred 
                                        prior to the date of the 
                                        assumption;
                                            ``(bb) the loan shall be 
                                        for the lesser of the 
                                        outstanding principal and 
                                        interest of the loan or the 
                                        fair market value of the 
                                        property; and
                                            ``(cc) the loan shall be 
                                        treated as though the loan was 
                                        made under Public Law 91-229 
                                        (25 U.S.C. 488 et seq.).'';
                    (B) by striking paragraph (3);
                    (C) in paragraph (4)--
                            (i) by striking subparagraph (B);
                            (ii) in subparagraph (A)--
                                    (I) in clause (i), by striking 
                                ``(i)''; and
                                    (II) by redesignating clause (ii) 
                                as subparagraph (B); and
                            (iii) in subparagraph (B) (as redesignated 
                        by clause (ii)(II)), by striking ``clause (i)'' 
                        and inserting ``subparagraph (A)'';
                    (D) by striking paragraph (5);
                    (E) by striking paragraph (6);
                    (F) by redesignating paragraph (4) as paragraph 
                (3); and
                    (G) by redesignating paragraphs (7) through (10) as 
                paragraphs (4) through (7), respectively.

SEC. 634. DEFINITIONS.

    Section 343(a) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1991(a)) is amended--
            (1) in paragraph (11)--
                    (A) in the text preceding subparagraph (A), by 
                striking ``applicant--'' and inserting ``applicant, 
                regardless of whether participating in a program under 
                section 310E--''; and
                    (B) in subparagraph (F)--
                            (i) by striking ``15 percent'' and 
                        inserting ``35 percent''; and
                            (ii) by inserting before the semicolon at 
                        the end the following: ``, except that this 
                        subparagraph shall not apply to loans under 
                        subtitle B''; and
            (2) by adding at the end the following:
            ``(12) Debt forgiveness.--
                    ``(A) In general.--The term `debt forgiveness' 
                means reducing or terminating a farm loan made or 
                guaranteed under this title, in a manner that results 
                in a loss to the Secretary, through--
                            ``(i) writing-down or writing-off a loan 
                        under section 353;
                            ``(ii) compromising, adjusting, reducing, 
                        or charging-off a debt or claim under section 
                        331;
                            ``(iii) paying a loss on a guaranteed loan 
                        under section 357; or
                            ``(iv) discharging a debt as a result of 
                        bankruptcy.
                    ``(B) Loan restructuring.--The term `debt 
                forgiveness' does not include consolidation, 
                rescheduling, reamortization, or deferral.''.

SEC. 635. AUTHORIZATION FOR LOANS.

    Section 346 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1994) is amended--
            (1) in the second sentence of subsection (a), by striking 
        ``with or without'' and all that follows through 
        ``administration'' and inserting the following: ``without 
        authority for the Secretary to transfer amounts between the 
        categories''; and
            (2) by striking subsection (b) and inserting the following:
    ``(b) Authorization for Loans.--
            ``(1) In general.--The Secretary may make or guarantee 
        loans under subtitles A and B from the Agricultural Credit 
        Insurance Fund established under section 309 in not more than 
        the following amounts:
                    ``(A) Fiscal year 1996.--For fiscal year 1996, 
                $3,085,000,000, of which--
                            ``(i) $585,000,000 shall be for direct 
                        loans, of which--
                                    ``(I) $85,000,000 shall be for farm 
                                ownership loans under subtitle A; and
                                    ``(II) $500,000,000 shall be for 
                                operating loans under subtitle B; and
                            ``(ii) $2,500,000,000 shall be for 
                        guaranteed loans, of which--
                                    ``(I) $600,000,000 shall be for 
                                farm ownership loans under subtitle A; 
                                and
                                    ``(II) $1,900,000,000 shall be for 
                                operating loans under subtitle B.
                    ``(B) Fiscal year 1997.--For fiscal year 1997, 
                $3,165,000,000, of which--
                            ``(i) $585,000,000 shall be for direct 
                        loans, of which--
                                    ``(I) $85,000,000 shall be for farm 
                                ownership loans under subtitle A; and
                                    ``(II) $500,000,000 shall be for 
                                operating loans under subtitle B; and
                            ``(ii) $2,580,000,000 shall be for 
                        guaranteed loans, of which--
                                    ``(I) $630,000,000 shall be for 
                                farm ownership loans under subtitle A; 
                                and
                                    ``(II) $1,950,000,000 shall be for 
                                operating loans under subtitle B.
                    ``(C) Fiscal year 1998.--For fiscal year 1998, 
                $3,245,000,000, of which--
                            ``(i) $585,000,000 shall be for direct 
                        loans, of which--
                                    ``(I) $85,000,000 shall be for farm 
                                ownership loans under subtitle A; and
                                    ``(II) $500,000,000 shall be for 
                                operating loans under subtitle B; and
                            ``(ii) $2,660,000,000 shall be for 
                        guaranteed loans, of which--
                                    ``(I) $660,000,000 shall be for 
                                farm ownership loans under subtitle A; 
                                and
                                    ``(II) $2,000,000,000 shall be for 
                                operating loans under subtitle B.
                    ``(D) Fiscal year 1999.--For fiscal year 1999, 
                $3,325,000,000, of which--
                            ``(i) $585,000,000 shall be for direct 
                        loans, of which--
                                    ``(I) $85,000,000 shall be for farm 
                                ownership loans under subtitle A; and
                                    ``(II) $500,000,000 shall be for 
                                operating loans under subtitle B; and
                            ``(ii) $2,740,000,000 shall be for 
                        guaranteed loans, of which--
                                    ``(I) $690,000,000 shall be for 
                                farm ownership loans under subtitle A; 
                                and
                                    ``(II) $2,050,000,000 shall be for 
                                operating loans under subtitle B.
                    ``(E) Fiscal year 2000.--For fiscal year 2000, 
                $3,435,000,000, of which--
                            ``(i) $585,000,000 shall be for direct 
                        loans, of which--
                                    ``(I) $85,000,000 shall be for farm 
                                ownership loans under subtitle A; and
                                    ``(II) $500,000,000 shall be for 
                                operating loans under subtitle B; and
                            ``(ii) $2,850,000,000 shall be for 
                        guaranteed loans, of which--
                                    ``(I) $750,000,000 shall be for 
                                farm ownership loans under subtitle A; 
                                and
                                    ``(II) $2,100,000,000 shall be for 
                                operating loans under subtitle B.
                    ``(F) Fiscal year 2001.--For fiscal year 2001, 
                $3,435,000,000, of which--
                            ``(i) $585,000,000 shall be for direct 
                        loans, of which--
                                    ``(I) $85,000,000 shall be for farm 
                                ownership loans under subtitle A; and
                                    ``(II) $500,000,000 shall be for 
                                operating loans under subtitle B; and
                            ``(ii) $2,850,000,000 shall be for 
                        guaranteed loans, of which--
                                    ``(I) $750,000,000 shall be for 
                                farm ownership loans under subtitle A; 
                                and
                                    ``(II) $2,100,000,000 shall be for 
                                operating loans under subtitle B.
                    ``(G) Fiscal year 2002.--For fiscal year 2002, 
                $3,435,000,000, of which--
                            ``(i) $585,000,000 shall be for direct 
                        loans, of which--
                                    ``(I) $85,000,000 shall be for farm 
                                ownership loans under subtitle A; and
                                    ``(II) $500,000,000 shall be for 
                                operating loans under subtitle B; and
                            ``(ii) $2,850,000,000 shall be for 
                        guaranteed loans, of which--
                                    ``(I) $750,000,000 shall be for 
                                farm ownership loans under subtitle A; 
                                and
                                    ``(II) $2,100,000,000 shall be for 
                                operating loans under subtitle B.
            ``(2) Beginning farmers and ranchers.--
                    ``(A) Direct loans.--
                            ``(i) Farm ownership loans.--Of the amounts 
                        made available under paragraph (1) for direct 
                        farm ownership loans, the Secretary shall 
                        reserve 70 percent of available funds for 
                        qualified beginning farmers and ranchers.
                            ``(ii) Operating loans.--Of the amounts 
                        made available under paragraph (1) for direct 
                        operating loans, the Secretary shall reserve 
                        for qualified beginning farmers and ranchers--
                                    ``(I) for fiscal year 1996, 25 
                                percent;
                                    ``(II) for fiscal year 1997, 25 
                                percent;
                                    ``(III) for fiscal year 1998, 25 
                                percent;
                                    ``(IV) for fiscal year 1999, 30 
                                percent; and
                                    ``(V) for each of fiscal years 2000 
                                through 2002, 35 percent.
                            ``(iii) Funds reserved until september 1.--
                        Funds reserved for beginning farmers or 
                        ranchers under this subparagraph shall be 
                        reserved only until September 1 of each fiscal 
                        year.
                    ``(B) Guaranteed loans.--
                            ``(i) Farm ownership loans.--Of the amounts 
                        made available under paragraph (1) for 
                        guaranteed farm ownership loans, the Secretary 
                        shall reserve 25 percent for qualified 
                        beginning farmers and ranchers.
                            ``(ii) Operating loans.--Of the amounts 
                        made available under paragraph (1) for 
                        guaranteed operating loans, the Secretary shall 
                        reserve 40 percent for qualified beginning 
                        farmers and ranchers.
                            ``(iii) Funds reserved until april 1.--
                        Funds reserved for beginning farmers or 
                        ranchers under this subparagraph shall be 
                        reserved only until April 1 of each fiscal 
                        year.
                    ``(C) Reserved funds for all qualified beginning 
                farmers and ranchers.--If a qualified beginning farmer 
                or rancher meets the eligibility criteria for receiving 
                a direct or guaranteed loan under section 302, 310E, or 
                311, the Secretary shall make or guarantee the loan if 
                sufficient funds reserved under this paragraph are 
                available to make or guarantee the loan.
            ``(3) Transfer for down payment loans.--
                    ``(A) In general.--Notwithstanding subsection (a), 
                subject to subparagraph (B)--
                            ``(i) beginning on August 1 of each fiscal 
                        year, the Secretary shall use available 
                        unsubsidized guaranteed farm operating loan 
                        funds to fund approved direct farm ownership 
                        loans to beginning farmers and ranchers under 
                        the down payment loan program established under 
                        section 310E; and
                            ``(ii) beginning on September 1 of each 
                        fiscal year, the Secretary shall use available 
                        unsubsidized guaranteed farm operating loan 
                        funds to fund approved direct farm ownership 
                        loans to beginning farmers and ranchers.
                    ``(B) Limitation.--The Secretary shall limit the 
                transfer of funds under subparagraph (A) so that all 
                guaranteed farm operating loans that have been 
                approved, or will be approved, during the fiscal year 
                shall be funded to extent of appropriated amounts.
            ``(4) Transfer for credit sales of farm inventory 
        property.--
                    ``(A) In general.--Notwithstanding subsection (a), 
                subject to subparagraphs (B) and (C), beginning on 
                September 1 of each fiscal year, the Secretary may use 
                available emergency disaster loan funds appropriated 
                for the fiscal year to fund the credit sale of farm 
                real estate in the inventory of the Secretary.
                    ``(B) Supplemental appropriations.--The transfer 
                authority provided under subparagraph (A) does not 
                include any emergency disaster loan funds made 
                available to the Secretary for any fiscal year as a 
                result of a supplemental appropriation made by 
                Congress.
                    ``(C) Limitation.--The Secretary shall limit the 
                transfer of funds under subparagraph (A) so that all 
                emergency disaster loans that have been approved, or 
                will be approved, during the fiscal year shall be 
                funded to extent of appropriated amounts.''.

SEC. 636. LIST OF CERTIFIED LENDERS AND INVENTORY PROPERTY 
              DEMONSTRATION PROJECT.

    (a) In General.--Section 351 of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1999) is amended--
            (1) in subsection (f)--
                    (A) by striking ``Each Farmers Home Administration 
                county supervisor'' and inserting ``The Secretary'';
                    (B) by striking ``approved lenders'' and inserting 
                ``lenders''; and
                    (C) by striking ``the Farmers Home 
                Administration''; and
            (2) by striking subsection (h).
    (b) Technical Amendments.--
            (1) Section 1320 of the Food Security Act of 1985 (Public 
        Law 99-198; 7 U.S.C. 1999 note) is amended by striking 
        ``Effective only'' and all that follows through ``1995, the'' 
        and inserting ``The''.
            (2) Section 351(a) of the Consolidated Farm and Rural 
        Development Act (7 U.S.C. 1999) is amended--
                    (A) by striking ``Sec. 351. (a) The'' and inserting 
                the following:

``SEC. 351. INTEREST RATE REDUCTION PROGRAM.

    ``(a) Establishment of Program.--
            ``(1) In general.--The''; and
                    (B) by adding at the end the following:
            ``(2) Termination of authority.--The authority provided by 
        this subsection shall terminate on September 30, 2002.''.

SEC. 637. HOMESTEAD PROPERTY.

    Section 352(c) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 2000(c)) is amended--
            (1) in paragraph (1)(A), by striking ``90'' each place it 
        appears and inserting ``30''; and
            (2) in paragraph (6), by striking ``Within 30'' and all 
        that follows through ``title,'' and insert ``Not later than the 
        date of acquisition of the property securing a loan made under 
        this title (or, in the case of real property in inventory on 
        the effective date of the Agricultural Reform and Improvement 
        Act of 1996, not later than 5 days after the date of enactment 
        of the Act),'' and by striking the second sentence.

SEC. 638. RESTRUCTURING.

    Section 353 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 2001) is amended--
            (1) in subsection (c)--
                    (A) in paragraph (3) by striking subparagraph (C) 
                and inserting the following:
                    ``(C) Cash flow margin.--
                            ``(i) Assumption.--For the purpose of 
                        assessing under subparagraph (A) the ability of 
                        a borrower to meet debt obligations and 
                        continue farming operations, the Secretary 
                        shall assume that the borrower needs up to 110 
                        percent of the amount indicated for payment of 
                        farm operating expenses, debt service 
                        obligations, and family living expenses.
                            ``(ii) Available income.--If an amount up 
                        to 110 percent of the amount determined under 
                        subparagraph (A) is available, the Secretary 
                        shall consider the income of the borrower to be 
                        adequate to meet all expenses, including the 
                        debt obligations of the borrower.''; and
                    (B) by striking paragraph (6) and inserting the 
                following:
            ``(6) Termination of loan obligations.--The obligations of 
        a borrower to the Secretary under a loan shall terminate if--
                    ``(A) the borrower satisfies the requirements of 
                paragraphs (1) and (2) of subsection (b);
                    ``(B) the value of the restructured loan is less 
                than the recovery value; and
                    ``(C) not later than 90 days after receipt of the 
                notification described in paragraph (4)(B), the 
                borrower pays (or obtains third-party financing to pay) 
                the Secretary an amount equal to the current market 
                value.'';
            (2) by striking subsection (k); and
            (3) by redesignating subsections (l) through (p) as 
        subsections (k) through (o), respectively.

SEC. 639. TRANSFER OF INVENTORY LANDS.

    Section 354 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 2002) is amended--
            (1) in the matter preceding paragraph (1), by striking 
        ``The Secretary, without reimbursement,'' and inserting the 
        following:
    ``(a) In General.--Subject to subsection (b), the Secretary'';
            (2) by striking paragraph (2) and inserting the following:
            ``(2) that is eligible to be disposed of in accordance with 
        section 335; and''; and
            (3) by adding at the end the following:
    ``(b) Conditions.--The Secretary may not transfer any property or 
interest under subsection (a) unless--
            ``(1) at least 2 public notices are given of the transfer;
            ``(2) if requested, at least 1 public meeting is held prior 
        to the transfer; and
            ``(3) the Governor and at least 1 elected county official 
        are consulted prior to the transfer.''.

SEC. 640. IMPLEMENTATION OF TARGET PARTICIPATION RATES.

    Section 355 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 2003) is amended by adding at the end the following:
    ``(f) Implementation Consistent with Supreme Court Holding.--Not 
later than 180 days after the date of enactment of this subsection, the 
Secretary shall ensure that the implementation of this section is 
consistent with the holding of the Supreme Court in Adarand 
Constructors, Inc. v. Federico Pena, Secretary of Transportation, 63 
U.S.L.W. 4523 (U.S. June 12, 1995).''.

SEC. 641. DELINQUENT BORROWERS AND CREDIT STUDY.

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

``SEC. 372. PAYMENT OF INTEREST AS A CONDITION OF LOAN SERVICING FOR 
              BORROWERS.

    ``The Secretary may not reschedule or reamortize a loan for a 
borrower under this title who has not requested consideration under 
section 331D(e) unless the borrower pays a portion, as determined by 
the Secretary, of the interest due on the loan.

``SEC. 373. LOAN AND LOAN SERVICING LIMITATIONS

    ``(a) Delinquent Borrowers Prohibited from Obtaining Direct 
Operating Loans.--The Secretary may not make a direct operating loan 
under subtitle B to a borrower who is delinquent on any loan made or 
guaranteed under this title.
    ``(b) Loans Prohibited for Borrowers that Have Received Debt 
Forgiveness.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        Secretary may not make or guarantee a loan under this title to 
        a borrower who received debt forgiveness under this title.
            ``(2) Exception.--The Secretary may make a direct or 
        guaranteed farm operating loan for paying annual farm or ranch 
        operating expenses to a borrower who was restructured with debt 
        write-down under section 353.
    ``(c) No More That 1 Debt Forgiveness For A Borrower On A Direct 
Loan.--The Secretary may not provide debt forgiveness to a borrower on 
a direct loan made under this title if the borrower has received debt 
forgiveness on another direct loan under this title.

``SEC. 374. CREDIT STUDY.

    ``(a) In General.--The Secretary of Agriculture shall perform a 
study and report to the Committee on Agriculture in the House of 
Representatives and the Committee on Agriculture, Nutrition, and 
Forestry in the Senate on the demand for and availability of credit in 
rural areas for agriculture, rural housing, and rural development.
    ``(b) Purpose.--The purpose of the study is to ensure that Congress 
has current and comprehensive information to consider as Congress 
deliberates on the credit needs of rural America and the availability 
of credit to satisfy the needs of rural America.
    ``(c) Items in Study.--The study should be based on the most 
current available data and should include--
            ``(1) rural demand for credit from the Farm Credit System, 
        the ability of the Farm Credit System to meet the demand, and 
        the extent to which the Farm Credit System provided loans to 
        satisfy the demand;
            ``(2) rural demand for credit from the nation's banking 
        system, the ability of banks to meet the demand, and the extent 
        to which banks provided loans to satisfy the demand;
            ``(3) rural demand for credit from the Secretary, the 
        ability of the Secretary to meet the demand, and the extent to 
        which the Secretary provided loans to satisfy the demand;
            ``(4) rural demand for credit from other Federal agencies, 
        the ability of the agencies to meet the demand, and the extent 
        to which the agencies provided loans to satisfy the demand;
            ``(5) what measure or measures exist to gauge the overall 
        demand for rural credit and the extent to which rural demand 
        for credit is satisfied, and what the measures have shown;
            ``(6) a comparison of the interest rates and terms charged 
        by the Farm Credit System Farm Credit Banks, production credit 
        associations, and banks for cooperatives with the rates and 
        terms charged by the nation's banks for credit of comparable 
        risk and maturity;
            ``(7) the advantages and disadvantages of the modernization 
        and expansion proposals of the Farm Credit System on the Farm 
        Credit System, the nation's banking system, rural users of 
        credit, local rural communities, and the Federal Government, 
        including--
                    ``(A) any added risk to the safety and soundness of 
                the Farm Credit System that may result from approval of 
                a proposal; and
                    ``(B) any positive or adverse impacts on 
                competition between the Farm Credit System and the 
                nation's banks in providing credit to rural users;
            ``(8) the nature and extent of the unsatisfied rural credit 
        need that the Farm Credit System proposal are supposed to 
        address and what aspects of the present Farm Credit System 
        prevent the Farm Credit System from meeting the need;
            ``(9) the advantages and disadvantages of the proposal by 
        commercial bankers to allow banks access to the Farm Credit 
        System as a funding source on the Farm Credit System, the 
        nation's banking system, rural users of credit, local rural 
        communities, and the Federal Government, including--
                    ``(A) any added risk to the safety and soundness of 
                the Farm Credit System that may result from approval of 
                the proposal; and
                    ``(B) any positive or adverse impacts on 
                competition between the Farm Credit System and the 
                nation's banks in providing credit to rural users; and
            ``(10) problems that commercial banks have in obtaining 
        capital for lending in rural areas, how access to Farm Credit 
        System funds would improve the availability of capital in rural 
        areas in ways that cannot be achieved in the present system, 
        and the possible effects on the viability of the Farm Credit 
        System of granting banks access to Farm Credit System funds.
    ``(d) Interagency Task Force.--In completing the study, the 
Secretary shall use, among other things, data and information obtained 
by the interagency task force on rural credit.''.

                     CHAPTER 5--GENERAL PROVISIONS

SEC. 651. CONFORMING AMENDMENTS.

    (a) Section 307(a) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1927(a)) is amended--
            (1) in paragraph (4), by striking ``304(b), 306(a)(1), and 
        310B'' and inserting ``306(a)(1) and 310B''; and
            (2) in paragraph (6)(B)--
                    (A) by striking clauses (i), (ii), and (vii);
                    (B) in clause (v), by adding ``and'' at the end;
                    (C) in clause (vi), by striking ``, and'' at the 
                end and inserting a period; and
                    (D) by redesignating clauses (iii) through (vi) as 
                clauses (i) through (iv), respectively.
    (b) The second sentence of section 309(g)(1) of the Consolidated 
Farm and Rural Development Act (7 U.S.C. 1929(g)(1)) is amended by 
striking ``section 308,''.
    (c) Section 309A of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1929a) is amended--
            (1) in the second sentence of subsection (a), by striking 
        ``304(b), 306(a)(1), 306(a)(14), 310B, and 312(b)'' and 
        inserting ``306(a)(1), 306(a)(14), and 310B''; and
            (2) in subsection (b), by striking ``and section 308''.
    (d) Section 310B(d) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1932(d)) is amended--
            (1) by striking ``sections 304(b), 310B, and 312(b)'' each 
        place it appears in paragraphs (2), (3), and (4) and inserting 
        ``this section''; and
            (2) in paragraph (6), by striking ``this section, section 
        304, or section 312'' and inserting ``this section''.
    (e) The first sentence of section 310D(a) of the Consolidated Farm 
and Rural Development Act (7 U.S.C. 1934(a)) is amended by striking 
``paragraphs (1) through (5) of section 303(a), or subparagraphs (A) 
through (E) of section 304(a)(1)'' and inserting ``section 303(a), or 
paragraphs (1) through (5) of section 304(b)''.
    (f) Section 311(b)(1) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1941(b)(1)) is amended by striking ``and for 
the purposes specified in section 312''.
    (g) Section 316(a) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1946(a)) is amended by striking paragraph (3).
    (h) Section 343 of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1991) is amended--
            (1) in subsection (a)(10), by striking ``recreation loan 
        (RL) under section 304,''; and
            (2) in subsection (b)--
                    (A) in the matter preceding paragraph (1), by 
                striking ``351(h),''; and
                    (B) by striking paragraph (4) and inserting the 
                following:
            ``(4) Preservation loan service program.--The term 
        ``preservation loan service program'' means homestead retention 
        as authorized under section 352.''.
    (i) The first sentence of section 344 of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1992) is amended by striking ``304(b), 
306(a)(1), 310B, 312(b), or 312(c)'' and inserting ``306(a)(1), 310B, 
or 312(c)''.
    (j) Section 353(l) of the Consolidated Farm and Rural Development 
Act (as redesignated by section 638(3)) is further amended by striking 
``and subparagraphs (A)(i) and (C)(i) of section 335(e)(1),''.

                     Subtitle B--Farm Credit System

           CHAPTER 1--AGRICULTURAL MORTGAGE SECONDARY MARKET

SEC. 661. DEFINITION OF REAL ESTATE.

    Section 8.0(1)(B)(ii) of the Farm Credit Act of 1971 (12 U.S.C. 
2279aa(1)(B)(ii)) is amended by striking ``with a purchase price'' and 
inserting ``, excluding the land to which the dwelling is affixed, with 
a value''.

SEC. 662. DEFINITION OF CERTIFIED FACILITY.

    Section 8.0(3) of the Farm Credit Act of 1971 (12 U.S.C. 2279aa(3)) 
is amended--
            (1) in subparagraph (A), by striking ``a secondary 
        marketing agricultural loan'' and inserting ``an agricultural 
        mortgage marketing''; and
            (2) in subparagraph (B), by striking ``, but only'' and all 
        that follows through ``(9)(B)''.

SEC. 663. DUTIES OF FEDERAL AGRICULTURAL MORTGAGE CORPORATION.

    Section 8.1(b) of the Farm Credit Act of 1971 (12 U.S.C. 2279aa-
1(b)) is amended--
            (1) in paragraph (2), by striking ``and'' at the end;
            (2) in paragraph (3), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(4) purchase qualified loans and issue securities 
        representing interests in, or obligations backed by, the 
        qualified loans, guaranteed for the timely repayment of 
        principal and interest.''.

SEC. 664. POWERS OF THE CORPORATION.

    Section 8.3(c) of the Farm Credit Act of 1971 (12 U.S.C. 2279aa-
3(c)) is amended--
            (1) by redesignating paragraphs (13) and (14) as paragraphs 
        (14) and (15), respectively; and
            (2) by inserting after paragraph (12) the following:
            ``(13) To purchase, hold, sell, or assign a qualified loan, 
        to issue a guaranteed security, representing an interest in, or 
        an obligation backed by, the qualified loan, and to perform all 
        the functions and responsibilities of an agricultural mortgage 
        marketing facility operating as a certified facility under this 
        title.''.

SEC. 665. FEDERAL RESERVE BANKS AS DEPOSITARIES AND FISCAL AGENTS.

    Section 8.3 of the Farm Credit Act of 1971 (12 U.S.C. 2279aa-3) is 
amended--
            (1) in subsection (d), by striking ``may act as 
        depositories for, or'' and inserting ``shall act as 
        depositories for, and''; and
            (2) in subsection (e), by striking ``Secretary of the 
        Treasury may authorize the Corporation to use'' and inserting 
        ``Corporation shall have access to''.

SEC. 666. CERTIFICATION OF AGRICULTURAL MORTGAGE MARKETING FACILITIES.

    Section 8.5 of the Farm Credit Act of 1971 (12 U.S.C. 2279aa-5) is 
amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), by inserting ``(other than 
                the Corporation)'' after ``agricultural mortgage 
                marketing facilities''; and
                    (B) in paragraph (2), by inserting ``(other than 
                the Corporation)'' after ``agricultural mortgage 
                marketing facility''; and
            (2) in subsection (e)(1), by striking ``(other than the 
        Corporation)''.

SEC. 667. GUARANTEE OF QUALIFIED LOANS.

    Section 8.6 of the Farm Credit Act of 1971 (12 U.S.C. 2279aa-6) is 
amended--
            (1) in subsection (a)(1)--
                    (A) by striking ``Corporation shall guarantee'' and 
                inserting the following: ``Corporation--
                    ``(A) shall guarantee'';
                    (B) by striking the period at the end and inserting 
                ``; and''; and
                    (C) by adding at the end the following:
                    ``(B) may issue a security, guaranteed as to the 
                timely payment of principal and interest, that 
                represents an interest solely in, or an obligation 
                fully backed by, a pool consisting of qualified loans 
                that--
                            ``(i) meet the standards established under 
                        section 8.8; and
                            ``(ii) have been purchased and held by the 
                        Corporation.'';
            (2) in subsection (d)--
                    (A) by striking paragraph (4); and
                    (B) by redesignating paragraphs (5), (6), and (7) 
                as paragraphs (4), (5), and (6), respectively; and
            (3) in subsection (g)(2), by striking ``section 
        8.0(9)(B))'' and inserting ``section 8.0(9))''.

SEC. 668. MANDATORY RESERVES AND SUBORDINATED PARTICIPATION INTERESTS 
              ELIMINATED.

    (a) Guarantee of Qualified Loans.--Section 8.6 of the Farm Credit 
Act of 1971 (12 U.S.C. 2279aa-6) is amended by striking subsection (b).
    (b) Reserves and Subordinated Participation Interests.--Section 8.7 
of the Farm Credit Act of 1971 (12 U.S.C. 2279aa-7) is repealed.
    (c) Conforming Amendments.--
            (1) Section 8.0(9)(B)(i) of the Farm Credit Act of 1971 (12 
        U.S.C. 2279aa(9)(B)(i)) is amended by striking ``8.7, 8.8,'' 
        and inserting ``8.8''.
            (2) Section 8.6(a)(2) of the Farm Credit Act of 1971 (12 
        U.S.C. 2279aa-6(a)(2)) is amended by striking ``subject to the 
        provisions of subsection (b)''.

SEC. 669. STANDARDS REQUIRING DIVERSIFIED POOLS.

    (a) In General.--Section 8.6 of the Farm Credit Act of 1971 (12 
U.S.C. 2279aa-6) (as amended by section 668) is amended--
            (1) by striking subsection (c); and
            (2) by redesignating subsections (d) through (g) as 
        subsections (b) through (e), respectively.
    (b) Conforming Amendments.--
            (1) Section 8.0(9)(B)(i) of the Farm Credit Act of 1971 (12 
        U.S.C. 2279aa(9)(B)(i)) is amended by striking ``(f)'' and 
        inserting ``(d)''.
            (2) Section 8.13(a) of the Farm Credit Act of 1971 (12 
        U.S.C. 2279aa-13(a)) is amended by striking ``sections 8.6(b) 
        and'' in each place it appears and inserting ``section''.
            (3) Section 8.32(b)(1)(C) of the Farm Credit Act of 1971 
        (12 U.S.C. 2279bb-1(b)(1)(C)) is amended--
                    (A) by striking ``shall'' and inserting ``may''; 
                and
                    (B) by inserting ``(as in effect before the date of 
                the enactment of the Agricultural Reform and 
                Improvement Act of 1996)'' before the semicolon.
            (4) Section 8.6(b) of the Farm Credit Act of 1971 (12 
        U.S.C. 2279aa-6(b)) (as redesignated by subsection (a)(2)) is 
        amended--
                    (A) by striking paragraph (4) (as redesignated by 
                section 667(2)(B)); and
                    (B) by redesignating paragraphs (5) and (6) (as 
                redesignated by section 667(2)(B)) as paragraphs (4) 
                and (5), respectively.

SEC. 670. SMALL FARMS.

    Section 8.8(e) of the Farm Credit Act of 1971 (12 U.S.C. 2279aa-
8(e)) is amended by adding at the end the following: ``The Board shall 
promote and encourage the inclusion of qualified loans for small farms 
and family farmers in the agricultural mortgage secondary market.''.

SEC. 671. DEFINITION OF AN AFFILIATE.

    Section 8.11(e) of the Farm Credit Act of 1971 (21 U.S.C. 2279aa-
11(e)) is amended--
            (1) by striking ``a certified facility or''; and
            (2) by striking ``paragraphs (3) and (7), respectively, of 
        section 8.0'' and inserting ``section 8.0(7)''.

SEC. 672. STATE USURY LAWS SUPERSEDED.

    Section 8.12 of the Farm Credit Act of 1971 (12 U.S.C. 2279aa-12) 
is amended by striking subsection (d) and inserting the following:
    ``(d) State Usury Laws Superseded.--A provision of the Constitution 
or law of any State shall not apply to an agricultural loan made by an 
originator or a certified facility in accordance with this title for 
sale to the Corporation or to a certified facility for inclusion in a 
pool for which the Corporation has provided, or has committed to 
provide, a guarantee, if the loan, not later than 180 days after the 
date the loan was made, is sold to the Corporation or included in a 
pool for which the Corporation has provided a guarantee, if the 
provision--
            ``(1) limits the rate or amount of interest, discount 
        points, finance charges, or other charges that may be charged, 
        taken, received, or reserved by an agricultural lender or a 
        certified facility; or
            ``(2) limits or prohibits a prepayment penalty (either 
        fixed or declining), yield maintenance, or make-whole payment 
        that may be charged, taken, or received by an agricultural 
        lender or a certified facility in connection with the full or 
        partial payment of the principal amount due on a loan by a 
        borrower in advance of the scheduled date for the payment under 
        the terms of the loan, otherwise known as a prepayment of the 
        loan principal.''.

SEC. 673. EXTENSION OF CAPITAL TRANSITION PERIOD.

    Section 8.32 of the Farm Credit Act of 1971 (12 U.S.C. 2279bb-1) is 
amended--
            (1) in the first sentence of subsection (a), by striking 
        ``Not later than the expiration of the 2-year period beginning 
        on December 13, 1991,'' and inserting ``Not sooner than the 
        expiration of the 3-year period beginning on the date of 
        enactment of the Agricultural Reform and Improvement Act of 
        1996,'';
            (2) in the first sentence of subsection (b)(2), by striking 
        ``5-year'' and inserting ``8-year''; and
            (3) in subsection (d)--
                    (A) in the first sentence--
                            (i) by striking ``The regulations 
                        establishing'' and inserting the following:
            ``(1) In general.--The regulations establishing''; and
                            (ii) by striking ``shall contain'' and 
                        inserting the following: ``shall--
                    ``(A) be issued by the Director for public comment 
                in the form of a notice of proposed rulemaking, to be 
                first published after the expiration of the period 
                referred to in subsection (a); and
                    ``(B) contain''; and
                    (B) in the second sentence, by striking ``The 
                regulations shall'' and inserting the following:
            ``(2) Specificity.--The regulations referred to in 
        paragraph (1) shall''.

SEC. 674. MINIMUM CAPITAL LEVEL.

    Section 8.33 of the Farm Credit Act of 1971 (12 U.S.C. 2279bb-2) is 
amended to read as follows:

``SEC. 8.33. MINIMUM CAPITAL LEVEL.

    ``(a) In General.--Except as provided in subsection (b), for 
purposes of this subtitle, the minimum capital level for the 
Corporation shall be an amount of core capital equal to the sum of--
            ``(1) 2.75 percent of the aggregate on-balance sheet assets 
        of the Corporation, as determined in accordance with generally 
        accepted accounting principles; and
            ``(2) 0.75 percent of the aggregate off-balance sheet 
        obligations of the Corporation, which, for the purposes of this 
        subtitle, shall include--
                    ``(A) the unpaid principal balance of outstanding 
                securities that are guaranteed by the Corporation and 
                backed by pools of qualified loans;
                    ``(B) instruments that are issued or guaranteed by 
                the Corporation and are substantially equivalent to 
                instruments described in subparagraph (A); and
                    ``(C) other off-balance sheet obligations of the 
                Corporation.
    ``(b) Transition Period.--
            ``(1) In general.--For purposes of this subtitle, the 
        minimum capital level for the Corporation--
                    ``(A) prior to January 1, 1997, shall be the amount 
                of core capital equal to the sum of--
                            ``(i) 0.45 percent of aggregate off-balance 
                        sheet obligations of the Corporation;
                            ``(ii) 0.45 percent of designated on-
                        balance sheet assets of the Corporation, as 
                        determined under paragraph (2); and
                            ``(iii) 2.50 percent of on-balance sheet 
                        assets of the Corporation other than assets 
                        designated under paragraph (2);
                    ``(B) during the 1-year period ending December 31, 
                1997, shall be the amount of core capital equal to the 
                sum of--
                            ``(i) 0.55 percent of aggregate off-balance 
                        sheet obligations of the Corporation;
                            ``(ii) 1.20 percent of designated on-
                        balance sheet assets of the Corporation, as 
                        determined under paragraph (2); and
                            ``(iii) 2.55 percent of on-balance sheet 
                        assets of the Corporation other than assets 
                        designated under paragraph (2);
                    ``(C) during the 1-year period ending December 31, 
                1998, shall be the amount of core capital equal to--
                            ``(i) if the Corporation's core capital is 
                        not less than $25,000,000 on January 1, 1998, 
                        the sum of--
                                    ``(I) 0.65 percent of aggregate 
                                off-balance sheet obligations of the 
                                Corporation;
                                    ``(II) 1.95 percent of designated 
                                on-balance sheet assets of the 
                                Corporation, as determined under 
                                paragraph (2); and
                                    ``(III) 2.65 percent of on-balance 
                                sheet assets of the Corporation other 
                                than assets designated under paragraph 
                                (2); or
                            ``(ii) if the Corporation's core capital is 
                        less than $25,000,000 on January 1, 1998, the 
                        amount determined under subsection (a); and
                    ``(D) on and after January 1, 1999, shall be the 
                amount determined under subsection (a).
            ``(2) Designated on-balance sheet assets.--For purposes of 
        this subsection, the designated on-balance sheet assets of the 
        Corporation shall be--
                    ``(A) the aggregate on-balance sheet assets of the 
                Corporation acquired under section 8.6(e); and
                    ``(B) the aggregate amount of qualified loans 
                purchased and held by the Corporation under section 
                8.3(c)(13).''.

SEC. 675. CRITICAL CAPITAL LEVEL.

    Section 8.34 of the Farm Credit Act of 1971 (12 U.S.C. 2279bb-3) is 
amended to read as follows:

``SEC. 8.34. CRITICAL CAPITAL LEVEL.

    ``For purposes of this subtitle, the critical capital level for the 
Corporation shall be an amount of core capital equal to 50 percent of 
the total minimum capital amount determined under section 8.33.''.

SEC. 676. ENFORCEMENT LEVELS.

    Section 8.35(e) of the Farm Credit Act of 1971 (12 U.S.C. 2279bb-
4(e)) is amended by striking ``during the 30-month period beginning on 
the date of the enactment of this section,'' and inserting ``during the 
period beginning on December 13, 1991, and ending on the effective date 
of the risk based capital regulation issued by the Director under 
section 8.32,''.

SEC. 677. RECAPITALIZATION OF THE CORPORATION.

    Title VIII of the Farm Credit Act of 1971 (12 U.S.C. 2279aa et 
seq.) is amended by adding at the end the following:

``SEC. 8.38. RECAPITALIZATION OF THE CORPORATION.

    ``(a) Mandatory Recapitalization.--The Corporation shall increase 
the core capital of the Corporation to an amount equal to or greater 
than $25,000,000, not later than the earlier of--
            ``(1) the date that is 2 years after the date of enactment 
        of this section; or
            ``(2) the date that is 180 days after the end of the first 
        calendar quarter that the aggregate on-balance sheet assets of 
        the Corporation, plus the outstanding principal of the off-
        balance sheet obligations of the Corporation, equal or exceed 
        $2,000,000,000.
    ``(b) Raising Core Capital.--In carrying out this section, the 
Corporation may issue stock under section 8.4 and otherwise employ any 
recognized and legitimate means of raising core capital in the power of 
the Corporation under section 8.3.
    ``(c) Limitation on Growth of Total Assets.--During the 2-year 
period beginning on the date of enactment of this section, the 
aggregate on-balance sheet assets of the Corporation plus the 
outstanding principal of the off-balance sheet obligations of the 
Corporation may not exceed $3,000,000,000 if the core capital of the 
Corporation is less than $25,000,000.
    ``(d) Enforcement.--If the Corporation fails to carry out 
subsection (a) by the date required under paragraph (1) or (2) of 
subsection (a), the Corporation may not purchase a new qualified loan 
or issue or guarantee a new loan-backed security until the core capital 
of the Corporation is increased to an amount equal to or greater than 
$25,000,000.''.

SEC. 678. LIQUIDATION OF THE FEDERAL AGRICULTURAL MORTGAGE CORPORATION.

    Title VIII of the Farm Credit Act of 1971 (12 U.S.C. 2279aa et 
seq.) (as amended by section 677) is amended by adding at the end the 
following:

 ``Subtitle C--Receivership, Con- servatorship, and Liquidation of the 
               Federal Agricultural Mortgage Corporation

``SEC. 8.41. CONSERVATORSHIP; LIQUIDATION; RECEIVERSHIP.

    ``(a) Voluntary Liquidation.--The Corporation may voluntarily 
liquidate only with the consent of, and in accordance with a plan of 
liquidation approved by, the Farm Credit Administration Board.
    ``(b) Involuntary Liquidation.--
            ``(1) In general.--The Farm Credit Administration Board may 
        appoint a conservator or receiver for the Corporation under the 
        circumstances specified in section 4.12(b).
            ``(2) Application.--In applying section 4.12(b) to the 
        Corporation under paragraph (1)--
                    ``(A) the Corporation shall also be considered 
                insolvent if the Corporation is unable to pay its debts 
                as they fall due in the ordinary course of business;
                    ``(B) a conservator may also be appointed for the 
                Corporation if the authority of the Corporation to 
                purchase qualified loans or issue or guarantee loan-
                backed securities is suspended; and
                    ``(C) a receiver may also be appointed for the 
                Corporation if--
                            ``(i)(I) the authority of the Corporation 
                        to purchase qualified loans or issue or 
                        guarantee loan-backed securities is suspended; 
                        or
                            ``(II) the Corporation is classified under 
                        section 8.35 as within level III or IV and the 
                        alternative actions available under subtitle B 
                        are not satisfactory; and
                            ``(ii) the Farm Credit Administration 
                        determines that the appointment of a 
                        conservator would not be appropriate.
            ``(3) No effect on supervisory actions.--The grounds for 
        appointment of a conservator for the Corporation under this 
        subsection shall be in addition to those in section 8.37.
    ``(c) Appointment of Conservator or Receiver.--
            ``(1) Qualifications.--Notwithstanding section 4.12(b), if 
        a conservator or receiver is appointed for the Corporation, the 
        conservator or receiver shall be--
                    ``(A) the Farm Credit Administration or any other 
                governmental entity or employee, including the Farm 
                Credit System Insurance Corporation; or
                    ``(B) any person that--
                            ``(i) has no claim against, or financial 
                        interest in, the Corporation or other basis for 
                        a conflict of interest as the conservator or 
                        receiver; and
                            ``(ii) has the financial and management 
                        expertise necessary to direct the operations 
                        and affairs of the Corporation and, if 
                        necessary, to liquidate the Corporation.
            ``(2) Compensation.--
                    ``(A) In general.--A conservator or receiver for 
                the Corporation and professional personnel (other than 
                a Federal employee) employed to represent or assist the 
                conservator or receiver may be compensated for 
                activities conducted as, or for, a conservator or 
                receiver.
                    ``(B) Limit on compensation.--Compensation may not 
                be provided in amounts greater than the compensation 
                paid to employees of the Federal Government for similar 
                services, except that the Farm Credit Administration 
                may provide for compensation at higher rates that are 
                not in excess of rates prevailing in the private sector 
                if the Farm Credit Administration determines that 
                compensation at higher rates is necessary in order to 
                recruit and retain competent personnel.
                    ``(C) Contractual arrangements.--The conservator or 
                receiver may contract with any governmental entity, 
                including the Farm Credit System Insurance Corporation, 
                to make personnel, services, and facilities of the 
                entity available to the conservator or receiver on such 
                terms and compensation arrangements as shall be 
                mutually agreed, and each entity may provide the same 
                to the conservator or receiver.
            ``(3) Expenses.--A valid claim for expenses of the 
        conservatorship or receivership (including compensation under 
        paragraph (2)) and a valid claim with respect to a loan made 
        under subsection (f) shall--
                    ``(A) be paid by the conservator or receiver from 
                funds of the Corporation before any other valid claim 
                against the Corporation; and
                    ``(B) may be secured by a lien, on such property of 
                the Corporation as the conservator or receiver may 
                determine, that shall have priority over any other 
                lien.
            ``(4) Liability.--If the conservator or receiver for the 
        Corporation is not a Federal entity, or an officer or employee 
        of the Federal Government, the conservator or receiver shall 
        not be personally liable for damages in tort or otherwise for 
        an act or omission performed pursuant to and in the course of 
        the conservatorship or receivership, unless the act or omission 
        constitutes gross negligence or any form of intentional 
        tortious conduct or criminal conduct.
            ``(5) Indemnification.--The Farm Credit Administration may 
        allow indemnification of the conservator or receiver from the 
        assets of the conservatorship or receivership on such terms as 
        the Farm Credit Administration considers appropriate.
    ``(d) Judicial Review of Appointment.--
            ``(1) In general.--Notwithstanding subsection (i)(1), not 
        later than 30 days after a conservator or receiver is appointed 
        under subsection (b), the Corporation may bring an action in 
        the United States District Court for the District of Columbia 
        for an order requiring the Farm Credit Administration Board to 
        remove the conservator or receiver. The court shall, on the 
        merits, dismiss the action or direct the Farm Credit 
        Administration Board to remove the conservator or receiver.
            ``(2) Stay of other actions.--On the commencement of an 
        action under paragraph (1), any court having jurisdiction of 
        any other action or enforcement proceeding authorized under 
        this Act to which the Corporation is a party shall stay the 
        action or proceeding during the pendency of the action for 
        removal of the conservator or receiver.
    ``(e) General Powers of Conservator or Receiver.--The conservator 
or receiver for the Corporation shall have such powers to conduct the 
conservatorship or receivership as shall be provided pursuant to 
regulations adopted by the Farm Credit Administration Board. Such 
powers shall be comparable to the powers available to a conservator or 
receiver appointed pursuant to section 4.12(b).
    ``(f) Borrowings for Working Capital.--
            ``(1) In general.--If the conservator or receiver of the 
        Corporation determines that it is likely that there will be 
        insufficient funds to pay the ongoing administrative expenses 
        of the conservatorship or receivership or that there will be 
        insufficient liquidity to fund maturing obligations of the 
        conservatorship or receivership, the conservator or receiver 
        may borrow funds in such amounts, from such sources, and at 
        such rates of interest as the conservator or receiver considers 
        necessary or appropriate to meet the administrative expenses or 
        liquidity needs of the conservatorship or receivership.
            ``(2) Working capital from farm credit banks.--A Farm 
        Credit bank may loan funds to the conservator or receiver for a 
        loan authorized under paragraph (1) or, in the event of 
        receivership, a Farm Credit bank may purchase assets of the 
        Corporation.
    ``(g) Agreements Against Interests of Conservator or Receiver.--No 
agreement that tends to diminish or defeat the right, title, or 
interest of the conservator or receiver for the Corporation in any 
asset acquired by the conservator or receiver as conservator or 
receiver for the Corporation shall be valid against the conservator or 
receiver unless the agreement--
            ``(1) is in writing;
            ``(2) is executed by the Corporation and any person 
        claiming an adverse interest under the agreement, including the 
        obligor, contemporaneously with the acquisition of the asset by 
        the Corporation;
            ``(3) is approved by the Board or an appropriate committee 
        of the Board, which approval shall be reflected in the minutes 
        of the Board or committee; and
            ``(4) has been, continuously, from the time of the 
        agreement's execution, an official record of the Corporation.
    ``(h) Report to the Congress.--On a determination by the receiver 
for the Corporation that there are insufficient assets of the 
receivership to pay all valid claims against the receivership, the 
receiver shall submit to the Secretary of the Treasury, the Committee 
on Agriculture of the House of Representatives, and the Committee on 
Agriculture, Nutrition, and Forestry of the Senate a report on the 
financial condition of the receivership.
    ``(i) Termination of Authorities.--
            ``(1) Corporation.--The charter of the Corporation shall be 
        canceled, and the authority provided to the Corporation by this 
        title shall terminate, on such date as the Farm Credit 
        Administration Board determines is appropriate following the 
        placement of the Corporation in receivership, but not later 
        than the conclusion of the receivership and discharge of the 
        receiver.
            ``(2) Oversight.--The Office of Secondary Market Oversight 
        established under section 8.11 shall be abolished, and section 
        8.11(a) and subtitle B shall have no force or effect, on such 
        date as the Farm Credit Administration Board determines is 
        appropriate following the placement of the Corporation in 
        receivership, but not later than the conclusion of the 
        receivership and discharge of the receiver.''.

                      CHAPTER 2--REGULATORY RELIEF

SEC. 681. COMPENSATION OF ASSOCIATION PERSONNEL.

    Section 1.5(13) of the Farm Credit Act of 1971 (12 U.S.C. 2013(13)) 
is amended by striking ``, and the appointment and compensation of the 
chief executive officer thereof,''.

SEC. 682. USE OF PRIVATE MORTGAGE INSURANCE.

    (a) In General.--Section 1.10(a)(1) of the Farm Credit Act of 1971 
(12 U.S.C. 2018(a)(1)) is amended by adding at the end the following:
                    ``(D) Private mortgage insurance.--A loan on which 
                private mortgage insurance is obtained may exceed 85 
                percent of the appraised value of the real estate 
                security to the extent that the loan amount in excess 
                of such 85 percent is covered by the insurance.''.
    (b) Conforming Amendment.--Section 1.10(a)(1)(A) of the Farm Credit 
Act of 1971 (12 U.S.C. 2018(a)(1)(A)) is amended by striking 
``paragraphs (2) and (3)'' and inserting ``subparagraphs (C) and (D)''.

SEC. 683. REMOVAL OF CERTAIN BORROWER REPORTING REQUIREMENT.

    Section 1.10(a) of the Farm Credit Act of 1971 (12 U.S.C. 2018(a)) 
is amended by striking paragraph (5).

SEC. 684. REFORM OF REGULATORY LIMITATIONS ON DIVIDEND, MEMBER 
              BUSINESS, AND VOTING PRACTICES OF ELIGIBLE FARMER-OWNED 
              COOPERATIVES.

    (a) In General.--Section 3.8(a) of the Farm Credit Act of 1971 (12 
U.S.C. 2129(a)) is amended by adding at the end the following: ``Any 
such association that has received a loan from a bank for cooperatives 
shall, without regard to the requirements of paragraphs (1) through 
(4), continue to be eligible for so long as more than 50 percent (or 
such higher percentage as is established by the bank board) of the 
voting control of the association is held by farmers, producers or 
harvesters of aquatic products, or eligible cooperative 
associations.''.
    (b) Conforming Amendment.--Section 3.8(b)(1)(D) of the Farm Credit 
Act of 1971 (12 U.S.C. 2129(b)(1)(D)) is amended by striking ``and (4) 
of subsection (a)'' and inserting ``and (4), or under the last 
sentence, of subsection (a)''.

SEC. 685. REMOVAL OF FEDERAL GOVERNMENT CERTIFICATION REQUIREMENT FOR 
              CERTAIN PRIVATE SECTOR FINANCINGS.

    Section 3.8(b)(1)(A) of the Farm Credit Act of 1971 (12 U.S.C. 
2129(b)(1)(A)) is amended--
            (1) by striking ``have been certified by the Administrator 
        of the Rural Electrification Administration to be eligible for 
        such'' and inserting ``are eligible under the Rural 
        Electrification Act of 1936 (7 U.S.C. 901 et seq.) for''; and
            (2) by striking ``loan guarantee, and'' and inserting 
        ``loan guarantee from the Administration or the Bank (or a 
        successor of the Administration or the Bank), and''.

SEC. 686. BORROWER STOCK.

    Section 4.3A of the Farm Credit Act of 1971 (12 U.S.C. 2154a) is 
amended--
            (1) by redesignating subsections (f) and (g) as subsections 
        (g) and (h), respectively; and
            (2) by inserting after subsection (e) the following:
    ``(f) Loans Designated for Sale or Sold Into the Secondary 
Market.--
            ``(1) In general.--Subject to paragraph (2) and 
        notwithstanding any other provision of this section, the bylaws 
        adopted by a bank or association under subsection (b) may 
        provide--
                    ``(A) in the case of a loan made on or after the 
                date of enactment of this paragraph that is designated, 
                at the time the loan is made, for sale into a secondary 
                market, that no voting stock or participation 
                certificate purchase requirement shall apply to the 
                borrower for the loan; and
                    ``(B) in the case of a loan made before the date of 
                enactment of this paragraph that is sold into a 
                secondary market, that all outstanding voting stock or 
                participation certificates held by the borrower with 
                respect to the loan shall, subject to subsection 
                (d)(1), be retired.
            ``(2) Applicability.--Notwithstanding any other provision 
        of this section, in the case of a loan sold to a secondary 
        market under title VIII, paragraph (1) shall apply regardless 
        of whether the bank or association retains a subordinated 
        participation interest in a loan or pool of loans or 
        contributes to a cash reserve.
            ``(3) Exception.--
                    ``(A) In general.--Subject to subparagraph (B) and 
                notwithstanding any other provision of this section, if 
                a loan designated for sale under paragraph (1)(A) is 
                not sold into a secondary market during the 180-day 
                period that begins on the date of the designation, the 
                voting stock or participation certificate purchase 
                requirement that would otherwise apply to the loan in 
                the absence of a bylaw provision described in paragraph 
                (1)(A) shall be effective.
                    ``(B) Retirement.--The bylaws adopted by a bank or 
                association under subsection (b) may provide that if a 
                loan described in subparagraph (A) is sold into a 
                secondary market after the end of the 180-day period 
                described in the subparagraph, all outstanding voting 
                stock or participation certificates held by the 
                borrower with respect to the loan shall, subject to 
                subsection (d)(1), be retired.''.

SEC. 687. DISCLOSURE RELATING TO ADJUSTABLE RATE LOANS.

    Section 4.13(a)(4) of the Farm Credit Act of 1971 (12 U.S.C. 
2199(a)(4)) is amended by inserting before the semicolon at the end the 
following: ``, and notice to the borrower of a change in the interest 
rate applicable to the loan of the borrower may be made within a 
reasonable time after the effective date of an increase or decrease in 
the interest rate''.

SEC. 688. BORROWERS' RIGHTS.

    (a) Definition of Loan.--Section 4.14A(a)(5) of the Farm Credit Act 
of 1971 (12 U.S.C. 2202a(a)(5)) is amended--
            (1) by striking ``(5) Loan.--The'' and inserting the 
        following:
            ``(5) Loan.--
                    ``(A) In general.--Subject to subparagraph (B), 
                the''; and
            (2) by adding at the end the following:
                    ``(B) Exclusion for loans designated for sale into 
                secondary market.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), the term `loan' does not include a 
                        loan made on or after the date of enactment of 
                        this subparagraph that is designated, at the 
                        time the loan is made, for sale into a 
                        secondary market.
                            ``(ii) Unsold loans.--
                                    ``(I) In general.--Except as 
                                provided in subclause (II), if a loan 
                                designated for sale under clause (i) is 
                                not sold into a secondary market during 
                                the 180-day period that begins on the 
                                date of the designation, the provisions 
                                of this section and sections 4.14, 
                                4.14B, 4.14C, 4.14D, and 4.36 that 
                                would otherwise apply to the loan in 
                                the absence of the exclusion described 
                                in clause (i) shall become effective 
                                with respect to the loan.
                                    ``(II) Later sale.--If a loan 
                                described in subclause (I) is sold into 
                                a secondary market after the end of the 
                                180-day period described in subclause 
                                (I), subclause (I) shall not apply with 
                                respect to the loan beginning on the 
                                date of the sale.''.
    (b) Borrowers' Rights for Pooled Loans.--The first sentence of 
section 8.9(b) of the Farm Credit Act of 1971 (12 U.S.C. 2279aa-9(b)) 
is amended by inserting ``(as defined in section 4.14A(a)(5))'' after 
``application for a loan''.

SEC. 689. FORMATION OF ADMINISTRATIVE SERVICE ENTITIES.

    Part E of title IV of the Farm Credit Act of 1971 is amended by 
inserting after section 4.28 (12 U.S.C. 2214) the following:

``SEC. 4.28A. DEFINITION OF BANK.

    ``In this part, the term `bank' includes each association operating 
under title II.''.

SEC. 690. JOINT MANAGEMENT AGREEMENTS.

    The first sentence of section 5.17(a)(2)(A) of the Farm Credit Act 
of 1971 (12 U.S.C. 2252(a)(2)(A)) is amended by striking ``or 
management agreements''.

SEC. 691. DISSEMINATION OF QUARTERLY REPORTS.

    Section 5.17(a)(8) of the Farm Credit Act of 1971 (12 U.S.C. 
2252(a)(8)) is amended by inserting after ``except that'' the 
following: ``the requirements of the Farm Credit Administration 
governing the dissemination to stockholders of quarterly reports of 
System institutions may not be more burdensome or costly than the 
requirements applicable to national banks, and''.

SEC. 692. REGULATORY REVIEW.

    (a) Findings.--Congress finds that--
            (1) the Farm Credit Administration, in the role of the 
        Administration as an arms-length safety and soundness 
        regulator, has made considerable progress in reducing the 
        regulatory burden on Farm Credit System institutions;
            (2) the efforts of the Farm Credit Administration described 
        in paragraph (1) have resulted in cost savings for Farm Credit 
        System institutions; and
            (3) the cost savings described in paragraph (2) ultimately 
        benefit the farmers, ranchers, agricultural cooperatives, and 
        rural residents of the United States.
    (b) Continuation of Regulatory Review.--The Farm Credit 
Administration shall continue the comprehensive review of regulations 
governing the Farm Credit System to identify and eliminate, consistent 
with law, safety, and soundness, all regulations that are unnecessary, 
unduly burdensome or costly, or not based on law.

SEC. 693. EXAMINATION OF FARM CREDIT SYSTEM INSTITUTIONS.

    The first sentence of section 5.19(a) of the Farm Credit Act of 
1971 (12 U.S.C. 2254(a)) is amended by striking ``each year'' and 
inserting ``during each 18-month period''.

SEC. 694. CONSERVATORSHIPS AND RECEIVERSHIPS.

    (a) Definitions.--Section 5.51 of the Farm Credit Act of 1971 (12 
U.S.C. 2277a) is amended--
            (1) by striking paragraph (5); and
            (2) by redesignating paragraph (6) as paragraph (5).
    (b) General Corporate Powers.--Section 5.58 of the Farm Credit Act 
of 1971 (12 U.S.C. 2277a-7) is amended by striking paragraph (9) and 
inserting the following:
            ``(9) Conservator or receiver.--The Corporation may act as 
        a conservator or receiver.''.

SEC. 695. FARM CREDIT INSURANCE FUND OPERATIONS.

    (a) Adjustment of Premiums.--
            (1) In general.--Section 5.55(a) of the Farm Credit Act of 
        1971 (12 U.S.C. 2277a-4(a)) is amended--
                    (A) in paragraph (1), by striking ``Until the 
                aggregate of amounts in the Farm Credit Insurance Fund 
                exceeds the secure base amount, the annual premium due 
                from any insured System bank for any calendar year'' 
                and inserting the following: ``If at the end of any 
                calendar year the aggregate of amounts in the Farm 
                Credit Insurance Fund does not exceed the secure base 
                amount, subject to paragraph (2), the annual premium 
                due from any insured System bank for the calendar 
                year'';
                    (B) by redesignating paragraph (2) as paragraph 
                (3); and
                    (C) by inserting after paragraph (1) the following:
            ``(2) Reduced premiums.--The Corporation, in the sole 
        discretion of the Corporation, may reduce by a percentage 
        uniformly applied to all insured System banks the annual 
        premium due from each insured System bank during any calendar 
        year, as determined under paragraph (1).''.
            (2) Conforming amendments.--
                    (A) Section 5.55(b) of the Farm Credit Act of 1971 
                (12 U.S.C. 2277a-4(b)) is amended--
                            (i) by striking ``Insurance Fund'' each 
                        place it appears and inserting ``Farm Credit 
                        Insurance Fund'';
                            (ii) by striking ``for the following 
                        calendar year''; and
                            (iii) by striking ``subsection (a)'' and 
                        inserting ``subsection (a)(1)''.
                    (B) Section 5.56(a) of the Farm Credit Act of 1971 
                (12 U.S.C. 2277a-5(a)) is amended by striking ``section 
                5.55(a)(2)'' each place it appears in paragraphs (2) 
                and (3) and inserting ``section 5.55(a)(3)''.
                    (C) Section 1.12(b) (12 U.S.C. 2020(b)) is 
                amended--
                            (i) in paragraph (1), by inserting ``(as 
                        defined in section 5.55(a)(3))'' after 
                        ``government-guaranteed loans''; and
                            (ii) in paragraph (3), by inserting ``(as 
                        so defined)'' after ``government-guaranteed 
                        loans'' each place such term appears.
    (b) Allocation to Insured System Banks and Other System 
Institutions of Excess Amounts in the Farm Credit Insurance Fund.--
Section 5.55 of the Farm Credit Act of 1971 (12 U.S.C. 2277a-4) is 
amended by adding at the end the following:
    ``(e) Allocation to System Institutions of Excess Reserves.--
            ``(1) Establishment of allocated insurance reserves 
        accounts.--There is hereby established in the Farm Credit 
        Insurance Fund an Allocated Insurance Reserves Account--
                    ``(A) for each insured System bank; and
                    ``(B) subject to paragraph (6)(C), for all holders, 
                in the aggregate, of Financial Assistance Corporation 
                stock.
            ``(2) Treatment.--Amounts in any Allocated Insurance 
        Reserves Account shall be considered to be part of the Farm 
        Credit Insurance Fund.
            ``(3) Annual allocations.--If, at the end of any calendar 
        year, the aggregate of the amounts in the Farm Credit Insurance 
        Fund exceeds the average secure base amount for the calendar 
        year (as calculated on an average daily balance basis), the 
        Corporation shall allocate to the Allocated Insurance Reserves 
        Accounts the excess amount less the amount that the 
        Corporation, in its sole discretion, determines to be the sum 
        of the estimated operating expenses and estimated insurance 
        obligations of the Corporation for the immediately succeeding 
        calendar year.
            ``(4) Allocation formula.--From the total amount required 
        to be allocated at the end of a calendar year under paragraph 
        (3)--
                    ``(A) 10 percent of the total amount shall be 
                credited to the Allocated Insurance Reserves Account 
                established under paragraph (1)(B), subject to 
                paragraph (6)(C); and
                    ``(B) there shall be credited to the Allocated 
                Insurance Reserves Account of each insured System bank 
                an amount that bears the same ratio to the total amount 
                (less any amount credited under subparagraph (A)) as 
                the average principal outstanding for the 3-year period 
                ending on the end of the calendar year on loans made by 
                the bank that are in accrual status bears to the 
                average principal outstanding for the 3-year period 
                ending on the end of the calendar year on loans made by 
                all insured System banks that are in accrual status 
                (excluding, in each case, the guaranteed portions of 
                government-guaranteed loans described in subsection 
                (a)(1)(C)).
            ``(5) Use of funds in allocated insurance reserves 
        accounts.--To the extent that the sum of the operating expenses 
        of the Corporation and the insurance obligations of the 
        Corporation for a calendar year exceeds the sum of operating 
        expenses and insurance obligations determined under paragraph 
        (3) for the calendar year, the Corporation shall cover the 
        expenses and obligations by--
                    ``(A) reducing each Allocated Insurance Reserves 
                Account by the same proportion; and
                    ``(B) expending the amounts obtained under 
                subparagraph (A) before expending other amounts in the 
                Fund.
            ``(6) Other disposition of account funds.--
                    ``(A) In general.--As soon as practicable during 
                each calendar year beginning more than 8 years after 
                the date on which the aggregate of the amounts in the 
                Farm Credit Insurance Fund exceeds the secure base 
                amount, but not earlier than January 1, 2005, the 
                Corporation may--
                            ``(i) subject to subparagraphs (D) and (F), 
                        pay to each insured System bank, in a manner 
                        determined by the Corporation, an amount equal 
                        to the lesser of--
                                    ``(I) 20 percent of the balance in 
                                the insured System bank's Allocated 
                                Insurance Reserves Account as of the 
                                preceding December 31; or
                                    ``(II) 20 percent of the balance in 
                                the bank's Allocated Insurance Reserves 
                                Account on the date of the payment; and
                            ``(ii) subject to subparagraphs (C), (E), 
                        and (F), pay to each System bank and 
                        association holding Financial Assistance 
                        Corporation stock a proportionate share, 
                        determined by dividing the number of shares of 
                        Financial Assistance Corporation stock held by 
                        the institution by the total number of shares 
                        of Financial Assistance Corporation stock 
                        outstanding, of the lesser of--
                                    ``(I) 20 percent of the balance in 
                                the Allocated Insurance Reserves 
                                Account established under paragraph 
                                (1)(B) as of the preceding December 31; 
                                or
                                    ``(II) 20 percent of the balance in 
                                the Allocated Insurance Reserves 
                                Account established under paragraph 
                                (1)(B) on the date of the payment.
                    ``(B) Authority to eliminate or reduce payments.--
                The Corporation may eliminate or reduce payments during 
                a calendar year under subparagraph (A) if the 
                Corporation determines, in its sole discretion, that 
                the payments, or other circumstances that might require 
                use of the Farm Credit Insurance Fund, could cause the 
                amount in the Farm Credit Insurance Fund during the 
                calendar year to be less than the secure base amount.
                    ``(C) Reimbursement for financial assistance 
                corporation stock.--
                            ``(i) Sufficient funding.--Notwithstanding 
                        paragraph (4)(A), on provision by the 
                        Corporation for the accumulation in the Account 
                        established under paragraph (1)(B) of funds in 
                        an amount equal to $56,000,000 (in addition to 
                        the amounts described in subparagraph (F)(ii)), 
                        the Corporation shall not allocate any further 
                        funds to the Account except to replenish the 
                        Account if funds are diminished below 
                        $56,000,000 by the Corporation under paragraph 
                        (5).
                            ``(ii) Wind down and termination.--
                                    ``(I) Final disbursements.--On 
                                disbursement of $53,000,000 (in 
                                addition to the amounts described in 
                                subparagraph (F)(ii)) from the 
                                Allocated Insurance Reserves Account, 
                                the Corporation shall disburse the 
                                remaining amounts in the Account, as 
                                determined under subparagraph (A)(ii), 
                                without regard to the percentage 
                                limitations in subclauses (I) and (II) 
                                of subparagraph (A)(ii).
                                    ``(II) Termination of account.--On 
                                disbursement of $56,000,000 (in 
                                addition to the amounts described in 
                                subparagraph (F)(ii)) from the 
                                Allocated Insurance Reserves Account, 
                                the Corporation shall close the Account 
                                established under paragraph (1)(B) and 
                                transfer any remaining funds in the 
                                Account to the remaining Allocated 
                                Insurance Reserves Accounts in 
                                accordance with paragraph (4)(B) for 
                                the calendar year in which the transfer 
                                occurs.
                    ``(D) Distribution of payments received.--Not later 
                than 60 days after receipt of a payment made under 
                subparagraph (A)(i), each insured System bank, in 
                consultation with affiliated associations of the 
                insured System bank, and taking into account the direct 
                or indirect payment of insurance premiums by the 
                associations, shall develop and implement an equitable 
                plan to distribute payments received under subparagraph 
                (A)(i) among the bank and associations of the bank.
                    ``(E) Exception for previously reimbursed 
                associations.--For purposes of subparagraph (A)(ii), in 
                any Farm Credit district in which the funding bank has 
                reimbursed 1 or more affiliated associations of the 
                bank for the previously unreimbursed portion of the 
                Financial Assistance Corporation stock held by the 
                associations, the funding bank shall be deemed to be 
                the holder of the shares of Financial Assistance 
                Corporation stock for which the funding bank has 
                provided the reimbursement.
                    ``(F) Initial payment.--Notwithstanding 
                subparagraph (A), the initial payment made to each 
                payee under subparagraph (A) shall be in such amount 
                determined by the Corporation to be equal to the sum 
                of--
                            ``(i) the total of the amounts that would 
                        have been paid if payments under subparagraph 
                        (A) had been authorized to begin, under the 
                        same terms and conditions, in the first 
                        calendar year beginning more than 5 years after 
                        the date on which the aggregate of the amounts 
                        in the Farm Credit Insurance Fund exceeds the 
                        secure base amount, and to continue through the 
                        2 immediately subsequent years;
                            ``(ii) interest earned on any amounts that 
                        would have been paid as described in clause (i) 
                        from the date on which the payments would have 
                        been paid as described in clause (i); and
                            ``(iii) the payment to be made in the 
                        initial year described in subparagraph (A), 
                        based on the amount in each Account after 
                        subtracting the amounts to be paid under 
                        clauses (i) and (ii).''
    (c) Technical Amendments.--Section 5.55(d) of the Farm Credit Act 
of 1971 (12 U.S.C. 2277a-4(d)) is amended--
            (1) in the matter preceding paragraph (1)--
                    (A) by striking ``subsections (a) and (c)'' and 
                inserting ``subsections (a), (c), and (e)''; and
                    (B) by striking ``a Farm Credit Bank'' and 
                inserting ``an insured System bank''; and
            (2) in paragraphs (1), (2), and (3), by striking ``Farm 
        Credit Bank'' each place it appears and inserting ``insured 
        System bank''.

SEC. 696. EXAMINATIONS BY THE FARM CREDIT SYSTEM INSURANCE CORPORATION.

    Section 5.59(b)(1)(A) of the Farm Credit Act of 1971 (12 U.S.C. 
2277a-8(b)(1)(A)) is amended by adding at the end the following: 
``Notwithstanding any other provision of this Act, on cancellation of 
the charter of a System institution, the Corporation shall have 
authority to examine the system institution in receivership. An 
examination shall be performed at such intervals as the Corporation 
shall determine.''.

SEC. 697. POWERS WITH RESPECT TO TROUBLED INSURED SYSTEM BANKS.

    (a) Least-Cost Resolution.--Section 5.61(a)(3) of the Farm Credit 
Act of 1971 (12 U.S.C. 2277a-10(a)) is amended--
            (1) by redesignating subparagraph (B) as subparagraph (F); 
        and
            (2) by striking subparagraph (A) and inserting the 
        following:
                    ``(A) Least-cost resolution.--Assistance may not be 
                provided to an insured System bank under this 
                subsection unless the means of providing the assistance 
                is the least costly means of providing the assistance 
                by the Farm Credit Insurance Fund of all possible 
                alternatives available to the Corporation, including 
                liquidation of the bank (including paying the insured 
                obligations issued on behalf of the bank). Before 
                making a least-cost determination under this 
                subparagraph, the Corporation shall accord such other 
                insured System banks as the Corporation determines to 
                be appropriate the opportunity to submit information 
                relating to the determination.
                    ``(B) Determining least costly approach.--In 
                determining the least costly alternative under 
                subparagraph (A), the Corporation shall--
                            ``(i) evaluate alternatives on a present-
                        value basis, using a reasonable discount rate;
                            ``(ii) document the evaluation and the 
                        assumptions on which the evaluation is based; 
                        and
                            ``(iii) retain the documentation for not 
                        less than 5 years.
                    ``(C) Time of determination.--
                            ``(i) General rule.--For purposes of this 
                        subsection, the determination of the costs of 
                        providing any assistance under any provision of 
                        this section with respect to any insured System 
                        bank shall be made as of the date on which the 
                        Corporation makes the determination to provide 
                        the assistance to the institution under this 
                        section.
                            ``(ii) Rule for liquidations.--For purposes 
                        of this subsection, the determination of the 
                        costs of liquidation of any insured System bank 
                        shall be made as of the earliest of--
                                    ``(I) the date on which a 
                                conservator is appointed for the 
                                insured System bank;
                                    ``(II) the date on which a receiver 
                                is appointed for the insured System 
                                bank; or
                                    ``(III) the date on which the 
                                Corporation makes any determination to 
                                provide any assistance under this 
                                section with respect to the insured 
                                System bank.
                    ``(D) Rule for stand-alone assistance.--Before 
                providing any assistance under paragraph (1), the 
                Corporation shall evaluate the adequacy of managerial 
                resources of the insured System bank. The continued 
                service of any director or senior ranking officer who 
                serves in a policymaking role for the assisted insured 
                System bank, as determined by the Corporation, shall be 
                subject to approval by the Corporation as a condition 
                of assistance.
                    ``(E) Discretionary determinations.--Any 
                determination that the Corporation makes under this 
                paragraph shall be in the sole discretion of the 
                Corporation.''.
    (b) Conforming Amendments.--Section 5.61(a) of the Farm Credit Act 
of 1971 (12 U.S.C. 2277a-10(a)) is amended--
            (1) in paragraph (1) by striking ``In general.--'' and 
        inserting ``Stand-alone assistance.--''; and
            (2) in paragraph (2)--
                    (A) by striking ``Enumerated powers.--'' and 
                inserting ``Facilitation of mergers or consolidation.--
                ''; and
                    (B) in subparagraph (A) by striking ``Facilitation 
                of mergers or consolidation.--'' and inserting ``In 
                general.--''.

SEC. 698. OVERSIGHT AND REGULATORY ACTIONS BY THE FARM CREDIT SYSTEM 
              INSURANCE CORPORATION.

    The Farm Credit Act of 1971 is amended by inserting after section 
5.61 (12 U.S.C. 2279a-10) the following:

``SEC. 5.61A. OVERSIGHT ACTIONS BY THE CORPORATION.

    ``(a) Definitions.--In this section, the term `institution' means--
            ``(1) an insured System bank; and
            ``(2) a production credit association or other association 
        making loans under section 7.6 with a direct loan payable to 
        the funding bank of the association that comprises 20 percent 
        or more of the funding bank's total loan volume net of 
        nonaccrual loans.
    ``(b) Consultation Regarding Participation of Undercapitalized 
Banks in Issuance of Insured Obligations.--The Farm Credit 
Administration shall consult with the Corporation prior to approving an 
insured obligation that is to be issued by or on behalf of, or 
participated in by, any insured System bank that fails to meet the 
minimum level for any capital requirement established by the Farm 
Credit Administration for the bank.
    ``(c) Consultation Regarding Applications for Mergers and 
Restructurings.--
            ``(1) Corporation to receive copy of transaction 
        applications.--On receiving an application for a merger or 
        restructuring of an institution, the Farm Credit Administration 
        shall forward a copy of the application to the Corporation.
            ``(2) Consultation required.--If the proposed merger or 
        restructuring involves an institution that fails to meet the 
        minimum level for any capital requirement established by the 
        Farm Credit Administration applicable to the institution, the 
        Farm Credit Administration shall allow 30 days within which the 
        Corporation may submit the views and recommendations of the 
        Corporation, including any conditions for approval. In 
        determining whether to approve or disapprove any proposed 
        merger or restructuring, the Farm Credit Administration shall 
        give due consideration to the views and recommendations of the 
        Corporation.

``SEC. 5.61B. AUTHORITY TO REGULATE GOLDEN PARACHUTE AND 
              INDEMNIFICATION PAYMENTS.

    ``(a) Definitions.--In this section:
            ``(1) Golden parachute payment.--The term `golden parachute 
        payment'--
                    ``(A) means a payment (or any agreement to make a 
                payment) in the nature of compensation for the benefit 
                of any institution-related party under an obligation of 
                any Farm Credit System institution that--
                            ``(i) is contingent on the termination of 
                        the party's relationship with the institution; 
                        and
                            ``(ii) is received on or after the date on 
                        which--
                                    ``(I) the institution is insolvent;
                                    ``(II) a conservator or receiver is 
                                appointed for the institution;
                                    ``(III) the institution has been 
                                assigned by the Farm Credit 
                                Administration a composite CAMEL rating 
                                of 4 or 5 under the Farm Credit 
                                Administration Rating System, or an 
                                equivalent rating; or
                                    ``(IV) the Corporation otherwise 
                                determines that the institution is in a 
                                troubled condition (as defined in 
                                regulations issued by the Corporation); 
                                and
                    ``(B) includes a payment that would be a golden 
                parachute payment but for the fact that the payment was 
                made before the date referred to in subparagraph 
                (A)(ii) if the payment was made in contemplation of the 
                occurrence of an event described in any subclause of 
                subparagraph (A); but
                    ``(C) does not include--
                            ``(i) a payment made under a retirement 
                        plan that is qualified (or is intended to be 
                        qualified) under section 401 of the Internal 
                        Revenue Code of 1986 or other nondiscriminatory 
                        benefit plan;
                            ``(ii) a payment made under a bona fide 
                        supplemental executive retirement plan, 
                        deferred compensation plan, or other 
                        arrangement that the Corporation determines, by 
                        regulation or order, to be permissible; or
                            ``(iii) a payment made by reason of the 
                        death or disability of an institution-related 
                        party.
            ``(2) Indemnification payment.--The term `indemnification 
        payment' means a payment (or any agreement to make a payment) 
        by any Farm Credit System institution for the benefit of any 
        person who is or was an institution-related party, to pay or 
        reimburse the person for any liability or legal expense with 
        regard to any administrative proceeding or civil action 
        instituted by the Farm Credit Administration that results in a 
        final order under which the person--
                    ``(A) is assessed a civil money penalty; or
                    ``(B) is removed or prohibited from participating 
                in the conduct of the affairs of the institution.
            ``(3) Institution-related party.--The term `institution-
        related party' means--
                    ``(A) a director, officer, employee, or agent for a 
                Farm Credit System institution or any conservator or 
                receiver of such an institution;
                    ``(B) a stockholder (other than another Farm Credit 
                System institution), consultant, joint venture partner, 
                or any other person determined by the Farm Credit 
                Administration to be a participant in the conduct of 
                the affairs of a Farm Credit System institution; and
                    ``(C) an independent contractor (including any 
                attorney, appraiser, or accountant) that knowingly or 
                recklessly participates in any violation of any law or 
                regulation, any breach of fiduciary duty, or any unsafe 
                or unsound practice that caused or is likely to cause 
                more than a minimal financial loss to, or a significant 
                adverse effect on, the Farm Credit System institution.
            ``(4) Liability or legal expense.--The term `liability or 
        legal expense' means--
                    ``(A) a legal or other professional expense 
                incurred in connection with any claim, proceeding, or 
                action;
                    ``(B) the amount of, and any cost incurred in 
                connection with, any settlement of any claim, 
                proceeding, or action; and
                    ``(C) the amount of, and any cost incurred in 
                connection with, any judgment or penalty imposed with 
                respect to any claim, proceeding, or action.
            ``(5) Payment.--The term `payment' means--
                    ``(A) a direct or indirect transfer of any funds or 
                any asset; and
                    ``(B) any segregation of any funds or assets for 
                the purpose of making, or under an agreement to make, 
                any payment after the date on which the funds or assets 
                are segregated, without regard to whether the 
                obligation to make the payment is contingent on--
                            ``(i) the determination, after that date, 
                        of the liability for the payment of the amount; 
                        or
                            ``(ii) the liquidation, after that date, of 
                        the amount of the payment.
    ``(b) Prohibition.--The Corporation may prohibit or limit, by 
regulation or order, any golden parachute payment or indemnification 
payment by a Farm Credit System institution (including any conservator 
or receiver of the Federal Agricultural Mortgage Corporation) in 
troubled condition (as defined in regulations issued by the 
Corporation).
    ``(c) Factors To Be Taken into Account.--The Corporation shall 
prescribe, by regulation, the factors to be considered by the 
Corporation in taking any action under subsection (b). The factors may 
include--
            ``(1) whether there is a reasonable basis to believe that 
        an institution-related party has committed any fraudulent act 
        or omission, breach of trust or fiduciary duty, or insider 
        abuse with regard to the Farm Credit System institution 
        involved that has had a material effect on the financial 
        condition of the institution;
            ``(2) whether there is a reasonable basis to believe that 
        the institution-related party is substantially responsible for 
        the insolvency of the Farm Credit System institution, the 
        appointment of a conservator or receiver for the institution, 
        or the institution's troubled condition (as defined in 
        regulations prescribed by the Corporation);
            ``(3) whether there is a reasonable basis to believe that 
        the institution-related party has materially violated any 
        applicable law or regulation that has had a material effect on 
        the financial condition of the institution;
            ``(4) whether there is a reasonable basis to believe that 
        the institution-related party has violated or conspired to 
        violate--
                    ``(A) section 215, 657, 1006, 1014, or 1344 of 
                title 18, United States Code; or
                    ``(B) section 1341 or 1343 of title 18, United 
                States Code, affecting a Farm Credit System 
                institution;
            ``(5) whether the institution-related party was in a 
        position of managerial or fiduciary responsibility; and
            ``(6) the length of time that the party was related to the 
        Farm Credit System institution and the degree to which--
                    ``(A) the payment reasonably reflects compensation 
                earned over the period of employment; and
                    ``(B) the compensation represents a reasonable 
                payment for services rendered.
    ``(d) Certain Payments Prohibited.--No Farm Credit System 
institution may prepay the salary or any liability or legal expense of 
any institution-related party if the payment is made--
            ``(1) in contemplation of the insolvency of the institution 
        or after the commission of an act of insolvency; and
            ``(2) with a view to, or with the result of--
                    ``(A) preventing the proper application of the 
                assets of the institution to creditors; or
                    ``(B) preferring 1 creditor over another creditor.
    ``(e) Rule of Construction.--Nothing in this section--
            ``(1) prohibits any Farm Credit System institution from 
        purchasing any commercial insurance policy or fidelity bond, so 
        long as the insurance policy or bond does not cover any legal 
        or liability expense of an institution described in subsection 
        (a)(2); or
            ``(2) limits the powers, functions, or responsibilities of 
        the Farm Credit Administration.''.

SEC. 699. FARM CREDIT SYSTEM INSURANCE CORPORATION BOARD OF DIRECTORS.

    (a) In General.--Section 5.53 of the Farm Credit Act of 1971 (12 
U.S.C. 2277a-2) is amended to read as follows:

``SEC. 5.53. BOARD OF DIRECTORS.

    ``(a) Establishment.--The Corporation shall be managed by a Board 
of Directors that shall consist of the members of the Farm Credit 
Administration Board.
    ``(b) Chairman.--The Board of Directors shall be chaired by any 
Board member other than the Chairman of the Farm Credit Administration 
Board.''.
    (b) Conforming Amendments.--
            (1) Section 5314 of title 5, United States Code, is amended 
        by striking ``Chairperson, Board of Directors of the Farm 
        Credit System Insurance Corporation.''.
            (2) Section 5315 of title 5, United States Code, is amended 
        by striking ``Members, Board of Directors of the Farm Credit 
        System Insurance Corporation.''.

SEC. 699A. LIABILITY FOR MAKING CRIMINAL REFERRALS.

    (a) In General.--Any institution of the Farm Credit System, or any 
director, officer, employee, or agent of a Farm Credit System 
institution, that discloses to a Government authority information 
proffered in good faith that may be relevant to a possible violation of 
any law or regulation shall not be liable to any person under any law 
of the United States or any State--
            (1) for the disclosure; or
            (2) for any failure to notify the person involved in the 
        possible violation.
    (b) No Prohibition on Disclosure.--Any institution of the Farm 
Credit System, or any director, officer, employee, or agent of a Farm 
Credit System institution, may disclose information to a Government 
authority that may be relevant to a possible violation of any law or 
regulation.

                      TITLE VII--RURAL DEVELOPMENT

  Subtitle A--Amendments to the Food, Agriculture, Conservation, and 
                           Trade Act of 1990

                     CHAPTER 1--GENERAL PROVISIONS

SEC. 701. RURAL INVESTMENT PARTNERSHIPS.

    (a) In General.--Section 2310(c)(1) of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 2007(c)(1)) is amended by 
striking ``1996'' and inserting ``2002''.
    (b) Authorization of Appropriations.--The first sentence of section 
2313(d) of the Food, Agriculture, Conservation, and Trade Act of 1990 
(7 U.S.C. 2007c) is amended by striking ``$10,000,000'' and all that 
follows through ``1996'' and inserting ``$4,700,000 for each of fiscal 
years 1996 through 2002''.

SEC. 702. WATER AND WASTE FACILITY FINANCING.

    Section 2322 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 1926-1) is repealed.

SEC. 703. RURAL WASTEWATER CIRCUIT RIDER PROGRAM.

    Section 2324 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (Public Law 101-624; 7 U.S.C. 1926 note) is repealed.

SEC. 704. TELEMEDICINE AND DISTANCE LEARNING SERVICES IN RURAL AREAS.

    Chapter 1 of subtitle D of title XXIII of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 950aaa et seq.) is 
amended to read as follows:

``CHAPTER 1--TELEMEDICINE AND DISTANCE LEARNING SERVICES IN RURAL AREAS

``SEC. 2331. PURPOSE.

    ``The purpose of the financing programs established under this 
chapter is to encourage and improve telemedicine services and distance 
learning services in rural areas through the use of telecommunications, 
computer networks, and related advanced technologies by students, 
teachers, medical professionals, and rural residents.

``SEC. 2332. DEFINITIONS.

    ``In this chapter:
            ``(1) Construct.--The term `construct' means to construct, 
        acquire, install, improve, or extend a facility or system.
            ``(2) Cost of money loan.--The term `cost of money loan' 
        means a loan made under this chapter bearing interest at a rate 
        equal to the then current cost to the Federal Government of 
        loans of similar maturity.
            ``(3) Secretary.--The term `Secretary' means the Secretary 
        of Agriculture.

``SEC. 2333. TELEMEDICINE AND DISTANCE LEARNING SERVICES IN RURAL 
              AREAS.

    ``(a) Services to Rural Areas.--The Secretary is authorized to 
provide financial assistance for the purpose of financing the 
construction of facilities and systems to provide telemedicine services 
and distance learning services to persons and entities in rural areas.
    ``(b) Financial Assistance.--
            ``(1) In general.--Financial assistance shall consist of 
        grants or cost of money loans, or both.
            ``(2) Form.--The Secretary shall determine the portion of 
        the financial assistance provided to a recipient that consists 
        of grants and that consists of cost of money loans so as to 
        result in the maximum feasible repayment to the Federal 
        Government of the financial assistance, based on the ability to 
        repay of the recipient and full utilization of funds made 
        available to carry out this chapter.
    ``(c) Recipients.--
            ``(1) In general.--The Secretary may provide financial 
        assistance under this chapter to--
                    ``(A) entities using telemedicine services or 
                distance learning services, or both; and
                    ``(B) entities providing or proposing to provide 
                telemedicine service or distance learning service, or 
                both, to other persons at rates reflecting the benefit 
                of the financial assistance.
            ``(2) Electric or telecommunications borrowers.--
                    ``(A) Loans to borrowers.--Subject to subparagraph 
                (B), the Secretary may provide a cost of money loan 
                under this chapter to a borrower of an electric or 
                telecommunications loan under the Rural Electrification 
                Act of 1936 (7 U.S.C. 901 et seq.). A borrower 
                receiving a cost of money loan under this paragraph 
                shall--
                            ``(i) make the funds provided available to 
                        entities that qualify under paragraph (1) for 
                        projects satisfying the requirements of this 
                        chapter;
                            ``(ii) use the funds provided to acquire, 
                        install, improve, or extend a system for the 
                        purposes of this chapter; or
                            ``(iii) use the funds provided to install, 
                        improve, or extend a facility for the purposes 
                        of this chapter.
                    ``(B) Limitations.--A borrower of an electric or 
                telecommunications loan under the Rural Electrification 
                Act of 1936 shall--
                            ``(i) make a system or facility funded 
                        under subparagraph (A) available to entities 
                        that qualify under paragraph (1); and
                            ``(ii) neither retain from the proceeds of 
                        a loan provided under subparagraph (A), nor 
                        assess a qualifying entity under paragraph (1), 
                        any amount except as may be required to pay the 
                        actual costs incurred in administering the loan 
                        funds or making the system or facility 
                        available.
            ``(3) Assistance to provide or improve services.--Financial 
        assistance may be provided under this chapter for a facility 
        regardless of the location of the facility if the Secretary 
        determines that the assistance is necessary to provide or 
        improve telemedicine services or distance learning services in 
        a rural area.
    ``(d) Priority.--The Secretary shall establish procedures to 
prioritize financial assistance provided under this chapter 
considering--
            ``(1) the need for the assistance in the affected rural 
        area;
            ``(2) the financial need of the applicant;
            ``(3) the population sparsity of the affected rural area;
            ``(4) the local involvement in the project serving the 
        affected rural area;
            ``(5) geographic diversity among the recipients of 
        financial assistance;
            ``(6) the utilization of the telecommunications facilities 
        of the existing telecommunications provider;
            ``(7) the portion of total project financing provided by 
        the applicant from the funds of the applicant;
            ``(8) the portion of project financing provided by the 
        applicant with funds obtained from non-Federal sources;
            ``(9) the joint utilization of facilities financed by other 
        financial assistance;
            ``(10) the coordination of the proposed project with 
        regional projects or networks;
            ``(11) service to the widest practical number of persons 
        within the general geographic area covered by the financial 
        assistance;
            ``(12) conformity with the State strategic plan as prepared 
        under section 381D of the Consolidated Farm and Rural 
        Development Act; and
            ``(13) other factors determined appropriate by the 
        Secretary.
    ``(e) Maximum Amount of Assistance to Individual Recipients.--The 
Secretary may establish the maximum amount of financial assistance to 
be made available to an individual recipient for each fiscal year under 
this chapter by publishing notice in the Federal Register. The notice 
shall be published not more than 45 days after funds are made available 
to carry out this chapter during a fiscal year.
    ``(f) Use of Funds.--Financial assistance provided under this 
chapter shall be used for--
            ``(1) the development and acquisition of instructional 
        programming;
            ``(2) the development and acquisition, through lease or 
        purchase, of computer hardware and software, audio and visual 
        equipment, computer network components, telecommunications 
        terminal equipment, telecommunications transmission facilities, 
        data terminal equipment, or interactive video equipment, and 
        other facilities that would further telemedicine services or 
        distance learning services, or both;
            ``(3) providing technical assistance and instruction for 
        the development or use of the programming, equipment, or 
        facilities referred to in paragraphs (1) and (2); or
            ``(4) other uses that are consistent with this chapter, as 
        determined by the Secretary.
    ``(g) Salaries and Expenses.--Notwithstanding subsection (f), 
financial assistance provided under this chapter shall not be used for 
paying salaries of employees or administrative expenses.
    ``(h) Expediting Coordinated Telephone Loans.--
            ``(1) In general.--The Secretary may establish and carry 
        out procedures to ensure that expedited consideration and 
        determination is given to applications for loans and advances 
        of funds submitted by local exchange carriers under this 
        chapter and the Rural Electrification Act of 1936 (7 U.S.C. 901 
        et seq.) to enable the exchange carriers to provide advanced 
        telecommunications services in rural areas in conjunction with 
        any other projects carried out under this chapter.
            ``(2) Deadline imposed on secretary.--Not later than 45 
        days after the receipt of a completed application for an 
        expedited telephone loan under paragraph (1), the Secretary 
        shall respond to the application. The Secretary shall notify 
        the applicant in writing of the decision of the Secretary 
        regarding each expedited loan application.
    ``(i) Notification of Local Exchange Carrier.--
            ``(1) Applicants.--Each applicant for a grant for a 
        telemedicine or distance learning project established under 
        this chapter shall notify the appropriate local telephone 
        exchange carrier regarding the application filed with the 
        Secretary for the grant.
            ``(2) Secretary.--The Secretary shall--
                    ``(A) publish notice of applications received for 
                grants under this chapter for telemedicine or distance 
                learning projects; and
                    ``(B) make the applications available for 
                inspection.

``SEC. 2334. ADMINISTRATION.

    ``(a) Nonduplication.--The Secretary shall ensure that facilities 
constructed using financial assistance provided under this chapter do 
not duplicate adequate established telemedicine services or distance 
learning services.
    ``(b) Loan Maturity.--The maturities of cost of money loans shall 
be determined by the Secretary, based on the useful life of the 
facility being financed, except that the loan shall not be for a period 
of more than 10 years.
    ``(c) Loan Security and Feasibility.--The Secretary shall make a 
cost of money loan only after determining that the security for the 
loan is reasonably adequate and that the loan will be repaid within the 
period of the loan.
    ``(d) Encouraging Consortia.--The Secretary shall encourage the 
development of consortia to provide telemedicine services or distance 
learning services, or both, through telecommunications in rural areas 
served by a telecommunications provider.
    ``(e) Cooperation With Other Agencies.--The Secretary shall 
cooperate, to the extent practicable, with other Federal and State 
agencies with similar grant or loan programs to pool resources for 
funding meritorious proposals in rural areas.
    ``(f) Informational Efforts.--The Secretary shall establish and 
implement procedures to carry out informational efforts to advise 
potential end users located in rural areas of each State about the 
program authorized by this chapter.

``SEC. 2335. REGULATIONS.

    ``Not later than 180 days after the effective date of the 
Agricultural Reform and Improvement Act of 1996, the Secretary shall 
issue regulations to carry out this chapter.

``SEC. 2335A. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this chapter 
$100,000,000 for each of fiscal years 1996 through 2002.''.

SEC. 705. LIMITATION ON AUTHORIZATION OF APPROPRIATIONS FOR RURAL 
              TECHNOLOGY GRANTS.

    Section 2347 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (Public Law 101-624; 104 Stat. 4034) is amended--
            (1) by striking ``(a) In General.--''; and
            (2) by striking subsection (b).

SEC. 706. MONITORING THE ECONOMIC PROGRESS OF RURAL AMERICA.

    Section 2382 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (Public Law 101-624; 13 U.S.C. 141 note) is repealed.

SEC. 707. ANALYSIS BY OFFICE OF TECHNOLOGY ASSESSMENT.

    Section 2385 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (Public Law 101-624; 7 U.S.C. 950aaa-4 note) is repealed.

SEC. 708. RURAL HEALTH INFRASTRUCTURE IMPROVEMENT.

    Section 2391 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (Public Law 101-624; 7 U.S.C. 2662 note) is repealed.

SEC. 709. CENSUS OF AGRICULTURE.

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

   CHAPTER 2--ALTERNATIVE AGRICULTURAL RESEARCH AND COMMERCIALIZATION

SEC. 721. DEFINITIONS.

    Section 1657(c) of the Food, Agriculture, Conservation, and Trade 
Act of 1990 (7 U.S.C. 5901(c)) is amended--
            (1) by striking paragraphs (3) and (4);
            (2) by redesignating paragraph (5) as paragraph (3);
            (3) by redesignating paragraphs (6) through (12) as 
        paragraphs (7) through (13), respectively; and
            (4) by inserting after paragraph (3) (as redesignated by 
        paragraph (2)) the following:
            ``(4) Corporate board.--The term `Corporate Board' means 
        the Board of Directors of the Corporation described in section 
        1659.
            ``(5) Corporation.--The term `Corporation' means the 
        Alternative Agricultural Research and Commercialization 
        Corporation established under section 1658.
            ``(6) Executive director.--The term `Executive Director' 
        means the Executive Director of the Corporation appointed under 
        section 1659(d)(2).''.

SEC. 722. ALTERNATIVE AGRICULTURAL RESEARCH AND COMMERCIALIZATION 
              CORPORATION.

    (a) In General.--Section 1658 of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 5902) is amended to read 
as follows:

``SEC. 1658. ALTERNATIVE AGRICULTURAL RESEARCH AND COMMERCIALIZATION 
              CORPORATION.

    ``(a) Establishment.--To carry out this subtitle, there is created 
a body corporate to be known as the Alternative Agricultural Research 
and Commercialization Corporation, which shall be an agency of the 
United States, within the Department of Agriculture, subject to the 
general supervision and direction of the Secretary, except as 
specifically provided for in this subtitle.
    ``(b) Purpose.--The purpose of the Corporation is to--
            ``(1) expedite the development and market penetration of 
        industrial, nonfood, nonfeed products from agricultural and 
        forestry materials; and
            ``(2) assist the private sector in bridging the gap between 
        research results and the commercialization of the research.
    ``(c) Place of Incorporation.--The Corporation shall be located in 
the District of Columbia.
    ``(d) Central Office.--The Secretary shall provide facilities for 
the principal office of the Corporation within the Washington, D.C. 
metropolitan area.
    ``(e) Wholly-Owned Government Corporation.--The Corporation shall 
be considered a wholly-owned government corporation for purposes of 
chapter 91 of title 31, United States Code.
    ``(f) General Powers.--In addition to any other powers granted to 
the Corporation under this subtitle, the Corporation--
            ``(1) shall have succession in its corporate name;
            ``(2) may adopt, alter, and rescind any bylaw and adopt and 
        alter a corporate seal, which shall be judicially noticed;
            ``(3) may enter into any agreement or contract with a 
        person or private or governmental agency, except that the 
        Corporation shall not provide any financial assistance unless 
        specifically authorized under this subtitle;
            ``(4) may lease, purchase, accept a gift or donation of, or 
        otherwise acquire, use, own, hold, improve, or otherwise deal 
        in or with, and sell, convey, mortgage, pledge, lease, 
        exchange, or otherwise dispose of, any property, real, 
        personal, or mixed, or any interest in property, as the 
        Corporation considers necessary in the transaction of the 
        business of the Corporation, except that this paragraph shall 
        not provide authority for carrying out a program of real estate 
        investment;
            ``(5) may sue and be sued in the corporate name of the 
        Corporation, except that--
                    ``(A) no attachment, injunction, garnishment, or 
                similar process shall be issued against the Corporation 
                or property of the Corporation; and
                    ``(B) exclusive original jurisdiction shall reside 
                in the district courts of the United States, but the 
                Corporation may intervene in any court in any suit, 
                action, or proceeding in which the Corporation has an 
                interest;
            ``(6) may independently retain legal representation;
            ``(7) may provide for and designate such committees, and 
        the functions of the committees, as the Corporate Board 
        considers necessary or desirable,
            ``(8) may indemnify the Executive Director and other 
        officers of the Corporation, as the Corporate Board considers 
        necessary and desirable, except that the Executive Director and 
        officers shall not be indemnified for an act outside the scope 
        of employment;
            ``(9) may, with the consent of any board, commission, 
        independent establishment, or executive department of the 
        Federal Government, including any field service, use 
        information, services, facilities, officials, and employees in 
        carrying out this subtitle, and pay for the use, which payments 
        shall be credited to the applicable appropriation that incurred 
        the expense;
            ``(10) may obtain the services and fix the compensation of 
        any consultant and otherwise procure temporary and intermittent 
        services under section 3109(b) of title 5, United States Code;
            ``(11) may use the United States mails on the same terms 
        and conditions as the Executive agencies of the Federal 
        Government;
            ``(12) shall have the rights, privileges, and immunities of 
        the United States with respect to the right to priority of 
        payment with respect to debts due from bankrupt, insolvent, or 
        deceased creditors;
            ``(13) may collect or compromise any obligations assigned 
        to or held by the Corporation, including any legal or equitable 
        rights accruing to the Corporation;
            ``(14) shall determine the character of, and necessity for, 
        obligations and expenditures of the Corporation and the manner 
        in which the obligations and expenditures shall be incurred, 
        allowed, and paid, subject to provisions of law specifically 
        applicable to Government corporations;
            ``(15) may make final and conclusive settlement and 
        adjustment of any claim by or against the Corporation or a 
        fiscal officer of the Corporation;
            ``(16) may sell assets, loans, and equity interests 
        acquired in connection with the financing of projects funded by 
        the Corporation; and
            ``(17) may exercise all other lawful powers necessarily or 
        reasonably related to the establishment of the Corporation to 
        carry out this subtitle and the powers, purposes, functions, 
        duties, and authorized activities of the Corporation.
    ``(g) Specific Powers.--To carry out this subtitle, the Corporation 
shall have the authority to--
            ``(1) make grants to, and enter into cooperative agreements 
        and contracts with, eligible applicants for research, 
        development, and demonstration projects in accordance with 
        section 1660;
            ``(2) make loans and interest subsidy payments and invest 
        venture capital in accordance with section 1661;
            ``(3) collect and disseminate information concerning State, 
        regional, and local commercialization projects;
            ``(4) search for new nonfood, nonfeed products that may be 
        produced from agricultural commodities and for processes to 
        produce the products;
            ``(5) administer, maintain, and dispense funds from the 
        Alternative Agricultural Research and Commercialization 
        Revolving Fund to facilitate the conduct of activities under 
        this subtitle; and
            ``(6) engage in other activities incident to carrying out 
        the functions of the Corporation.''.
    (b) Wholly Owned Government Corporation.--Section 9101(3) of title 
31, United States Code, is amended--
            (1) by redesignating subparagraph (N) (relating to the 
        Uranium Enrichment Corporation) as subparagraph (O); and
            (2) by adding at the end the following:
                    ``(P) the Alternative Agricultural Research and 
                Commercialization Corporation.''.
    (c) Conforming Amendment.--Section 211(b)(5) of the Department of 
Agriculture Reorganization Act of 1994 (7 U.S.C. 6911(b)(5)) is amended 
by striking ``Alternative Agricultural Research and Commercialization 
Board'' and inserting ``Corporate Board of the Alternative Agricultural 
Research and Commercialization Corporation''.

SEC. 723. BOARD OF DIRECTORS, EMPLOYEES, AND FACILITIES.

    (a) In General.--Section 1659 of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 5903) is amended to read 
as follows:

``SEC. 1659. BOARD OF DIRECTORS, EMPLOYEES, AND FACILITIES.

    ``(a) In General.--The powers of the Corporation shall be vested in 
a Corporate Board.
    ``(b) Members of the Corporate Board.--The Corporate Board shall 
consist of 10 members as follows:
            ``(1) The Under Secretary of Agriculture for Rural Economic 
        and Community Development.
            ``(2) The Under Secretary of Agriculture for Research, 
        Education, and Economics.
            ``(3) 4 members appointed by the Secretary, of whom--
                    ``(A) at least 1 member shall be a representative 
                of the leading scientific disciplines relevant to the 
                activities of the Corporation;
                    ``(B) at least 1 member shall be a producer or 
                processor of agricultural commodities; and
                    ``(C) at least 1 member shall be a person who is 
                privately engaged in the commercialization of new 
                nonfood, nonfeed products from agricultural 
                commodities.
            ``(4) 2 members appointed by the Secretary who--
                    ``(A) have expertise in areas of applied research 
                relating to the development or commercialization of new 
                nonfood, nonfeed products; and
                    ``(B) shall be appointed from a group of at least 4 
                individuals nominated by the Director of the National 
                Science Foundation if the nominations are made within 
                60 days after the date a vacancy occurs.
            ``(5) 2 members appointed by the Secretary who--
                    ``(A) have expertise in financial and managerial 
                matters; and
                    ``(B) shall be appointed from a group of at least 4 
                individuals nominated by the Secretary of Commerce if 
                the nominations are made within 60 days after the date 
                a vacancy occurs.
    ``(c) Responsibilities of the Corporate Board.--
            ``(1) In general.--The Corporate Board shall--
                    ``(A) be responsible for the general supervision of 
                the Corporation and Regional Centers established under 
                section 1663;
                    ``(B) determine (in consultation with Regional 
                Centers) high priority commercialization areas to 
                receive assistance under section 1663;
                    ``(C) review any grant, contract, or cooperative 
                agreement to be made or entered into by the Corporation 
                under section 1660 and any financial assistance to be 
                provided under section 1661;
                    ``(D) make the final decision, by majority vote, on 
                whether and how to provide assistance to an applicant; 
                and
                    ``(E) using the results of the hearings and other 
                information and data collected under paragraph (2), 
                develop and establish a budget plan and a long-term 
                operating plan to carry out this subtitle.
            ``(2) Authority of the secretary.--
                    ``(A) In general.--The Secretary shall vacate and 
                remand to the Board for reconsideration any decision 
                made pursuant to paragraph (1)(D) if the Secretary 
                determines that there has been a violation of 
                subsection (j), or any conflict of interest provisions 
                of the bylaws of the Board, with respect to the 
                decision.
                    ``(B) Reasons.--In the case of any violation and 
                referral of a funding decision to the Board, the 
                Secretary shall inform the Board of the reasons for any 
                remand pursuant to subparagraph (A).
    ``(d) Chairperson.--The members of the Corporate Board shall select 
a Chairperson from among the members of the Corporate Board. The term 
of office of the Chairperson shall be 2 years. The members referred to 
in paragraphs (1) and (2) of subsection (b) may not serve as 
Chairperson.
    ``(e) Executive Director.--
            ``(1) In general.--The Executive Director of the 
        Corporation shall be the chief executive officer of the 
        Corporation, with such power and authority as may be conferred 
        by the Corporate Board. The Executive Director shall be 
        appointed by the Corporate Board. The appointment shall be 
        subject to the approval of the Secretary.
            ``(2) Compensation.--The Executive Director shall receive 
        basic pay at the rate provided for level IV of the Executive 
        Schedule under section 5315 of title 5, United States Code.
    ``(f) Officers.--The Corporate Board shall establish the offices 
and appoint the officers of the Corporation, including a Secretary, and 
define the duties of the officers in a manner consistent with this 
subtitle.
    ``(g) Meetings.--The Corporate Board shall meet at least 3 times 
each fiscal year at the call of the Chairperson or at the request of 
the Executive Director. The location of the meetings shall be subject 
to approval of the Executive Director. A quorum of the Corporate Board 
shall consist of a majority of the members. The decisions of the 
Corporate Board shall be made by majority vote.
    ``(h) Term; Vacancies.--
            ``(1) In general.--The term of office of a member of the 
        Corporate Board shall be 4 years, except that the members 
        initially appointed shall be appointed to serve staggered 
        terms. A member appointed to fill a vacancy for an unexpired 
        term may be appointed only for the remainder of the term. A 
        vacancy on the Corporate Board shall be filled in the same 
        manner as the original appointment. The Secretary shall not 
        remove a member of the Corporate Board except for cause.
            ``(2) Transition measure.--An individual who is serving on 
        the Alternative Agricultural Research and Commercialization 
        Board on the day before the effective date of the Agricultural 
        Reform and Improvement Act of 1996 may be appointed to the 
        Corporate Board by the Secretary for a term that does not 
        exceed the term of the individual on the Alternative 
        Agricultural Research and Commercialization Board if the Act 
        had not been enacted.
    ``(i) Compensation.--A member of the Corporate Board who is an 
officer or employee of the United States shall not receive any 
additional compensation by reason of service on the Corporate Board. 
Any other member shall receive, for each day (including travel time) 
the member is engaged in the performance of the functions of the 
Corporate Board, compensation at a rate not to exceed the daily 
equivalent of the annual rate in effect for Level IV of the Executive 
Schedule. A member of the Corporate Board shall be reimbursed for 
travel, subsistence, and other necessary expenses incurred by the 
member in the performance of the duties of the member.
    ``(j) Conflict of Interest; Financial Disclosure.--
            ``(1) Conflict of interest.--Except as provided in 
        paragraph (3), no member of the Corporate Board shall vote on 
        any matter respecting any application, contract, claim, or 
        other particular matter pending before the Corporation, in 
        which, to the knowledge of the member, the member, spouse, or 
        child of the member, partner, or organization in which the 
        member is serving as officer, director, trustee, partner, or 
        employee, or any person or organization with whom the member is 
        negotiating or has any arrangement concerning prospective 
        employment, has a financial interest.
            ``(2) Violations.--Action by a member of the Corporate 
        Board that is contrary to the prohibition contained in 
        paragraph (1) shall be cause for removal of the member, but 
        shall not impair or otherwise affect the validity of any 
        otherwise lawful action by the Corporation in which the member 
        participated.
            ``(3) Exceptions.--The prohibitions contained in paragraph 
        (1) shall not apply if a member of the Corporate Board advises 
        the Corporate Board of the nature of the particular matter in 
        which the member proposes to participate, and if the member 
        makes a full disclosure of the financial interest, prior to any 
        participation, and the Corporate Board determines, by majority 
        vote, that the financial interest is too remote or too 
        inconsequential to affect the integrity of the member's 
        services to the Corporation in that matter. The member involved 
        shall not vote on the determination.
            ``(4) Financial disclosure.--A Board member shall be 
        subject to the financial disclosure requirements applicable to 
        a special Government employee (as defined in section 202(a) of 
        title 18, United States Code).
    ``(k) Delegation of Authority.--
            ``(1) In general.--The Corporate Board may, by resolution, 
        delegate to the Chairperson, the Executive Director, or any 
        other officer or employee any function, power, or duty assigned 
        to the Corporation under this subtitle, other than a function, 
        power, or duty expressly vested in the Corporate Board by 
        subsections (c) through (n).
            ``(2) Prohibition on delegation.--Notwithstanding any other 
        law, the Secretary and any other officer or employee of the 
        United States shall not make any delegation to the Corporate 
        Board, the Chairperson, the Executive Director, or the 
        Corporation of any power, function, or authority not expressly 
        authorized by this subtitle, unless the delegation is made 
        pursuant to an authority in law that expressly makes reference 
        to this section.
            ``(3) Reorganization act.--Notwithstanding any other law, 
        the President (through authorities provided under chapter 9, 
        title 5, United States Code) may not authorize the transfer to 
        the Corporation of any power, function, or authority in 
        addition to powers, functions, and authorities provided by law.
    ``(l) Bylaws.--Notwithstanding section 1658(f)(2), the Corporate 
Board shall adopt, and may from time to time amend, any bylaw that is 
necessary for the proper management and functioning of the Corporation. 
The Corporate Board shall not adopt any bylaw that has not been 
reviewed and approved by the Secretary.
    ``(m) Organization.--The Corporate Board shall provide a system of 
organization to fix responsibility and promote efficiency.
    ``(n) Personnel and Facilities of Corporation.--
            ``(1) Appointment and compensation of personnel.--The 
        Corporation may select and appoint officers, attorneys, 
        employees, and agents, who shall be vested with such powers and 
        duties as the Corporation may determine.
            ``(2) Use of facilities and services of the department of 
        agriculture.--Notwithstanding any other provision of law, to 
        perform the responsibilities of the Corporation under this 
        subtitle, the Corporation may partially or jointly utilize the 
        facilities of and the services of employees of the Department 
        of Agriculture, without cost to the Corporation.
            ``(3) Government employment laws.--An officer or employee 
        of the Corporation shall be subject to all laws of the United 
        States relating to governmental employment.''.
    (b) Conforming Amendment.--Section 5315 of title V, United States 
Code, is amended by adding at the end the following:
            ``Executive Director of the Alternative Agricultural 
        Research and Commercialization Corporation.''.

SEC. 724. RESEARCH AND DEVELOPMENT GRANTS, CONTRACTS, AND AGREEMENTS.

    Section 1660 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 5904) is amended--
            (1) by striking ``Center'' each place it appears and 
        inserting ``Corporation'';
            (2) in subsection (c), by striking ``Board'' and inserting 
        ``Corporate Board''; and
            (3) in subsection (f), by striking ``non-Center'' and 
        inserting ``non-Corporation''.

SEC. 725. COMMERCIALIZATION ASSISTANCE.

    Section 1661 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 5905) is amended--
            (1) by striking ``Center'' each place it appears and 
        inserting ``Corporation'';
            (2) by striking ``Board'' each place it appears and 
        inserting ``Corporate Board'';
            (3) by striking subsection (c);
            (4) by redesignating subsections (d), (e), and (f) as 
        subsections (c), (d), and (e), respectively; and
            (5) in subsection (c) (as so redesignated)--
                    (A) in the subsection heading of paragraph (1), by 
                striking ``director'' and inserting ``executive 
                director''; and
                    (B) by striking ``Director'' each place it appears 
                and inserting ``Executive Director''.

SEC. 726. GENERAL RULES REGARDING THE PROVISION OF ASSISTANCE.

    Section 1662 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 5906) is amended--
            (1) by striking ``Center'' each place it appears (except in 
        subsection (b)) and inserting ``Corporation'';
            (2) by striking ``Board'' each place it appears and 
        inserting ``Corporate Board''; and
            (3) in subsection (b)--
                    (A) in the second sentence, by striking ``Board, a 
                Regional Center, or the Advisory Council'' and 
                inserting ``Board or a Regional Center''; and
                    (B) by striking the third sentence.

SEC. 727. REGIONAL CENTERS.

    Section 1663 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 5907) is amended--
            (1) by striking ``Board'' each place it appears and 
        inserting ``Corporate Board'';
            (2) in subsection (e)(8), by striking ``Center'' and 
        inserting ``Corporation''; and
            (3) in subsection (f)--
                    (A) in paragraph (2), by striking ``in consultation 
                with the Advisory Council appointed under section 
                1661(c)''; and
                    (B) by striking paragraphs (3) and (4) and 
                inserting the following:
            ``(3) Recommendation.--The Regional Director, based on the 
        comments of the reviewers, shall make and submit a 
        recommendation to the Board. A recommendation submitted by a 
        Regional Director shall not be binding on the Board.''.

SEC. 728. ALTERNATIVE AGRICULTURAL RESEARCH AND COMMERCIALIZATION 
              REVOLVING FUND.

    Section 1664 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 5908) is amended to read as follows:

``SEC. 1664. ALTERNATIVE AGRICULTURAL RESEARCH AND COMMERCIALIZATION 
              REVOLVING FUND.

    ``(a) Establishment.--There is established in the Treasury of the 
United States a revolving fund to be known as the Alternative 
Agricultural Research and Commercialization Revolving Fund. The Fund 
shall be available to the Corporation, without fiscal year limitation, 
to carry out the authorized programs and activities of the Corporation 
under this subtitle.
    ``(b) Contents of Fund.--There shall be deposited in the Fund--
            ``(1) such amounts as may be appropriated or transferred to 
        support programs and activities of the Corporation;
            ``(2) payments received from any source for products, 
        services, or property furnished in connection with the 
        activities of the Corporation;
            ``(3) fees and royalties collected by the Corporation from 
        licensing or other arrangements relating to commercialization 
        of products developed through projects funded in whole or part 
        by grants, contracts, or cooperative agreements executed by the 
        Corporation;
            ``(4) proceeds from the sale of assets, loans, and equity 
        interests made in furtherance of the purposes of the 
        Corporation;
            ``(5) donations or contributions accepted by the 
        Corporation to support authorized programs and activities; and
            ``(6) any other funds acquired by the Corporation.
    ``(c) Funding Allocations.--Funding of projects and activities 
under this subtitle shall be subject to the following restrictions:
            ``(1) Of the total amount of funds made available for a 
        fiscal year under this subtitle--
                    ``(A) not more than the lesser of 15 percent or 
                $3,000,000 may be set aside to be used for authorized 
                administrative expenses of the Corporation in carrying 
                out the functions of the Corporation;
                    ``(B) not more than 1 percent may be set aside to 
                be used for generic studies and specific reviews of 
                individual proposals for financial assistance; and
                    ``(C) except as provided in subsection (e), not 
                less than 84 percent shall be set aside to be awarded 
                to qualified applicants who file project applications 
                with, or respond to requests for proposals from, the 
                Corporation under sections 1660 and 1661.
            ``(2) Any funds remaining uncommitted at the end of a 
        fiscal year shall be credited to the Fund and added to the 
        total program funds available to the Corporation for the next 
        fiscal year.
    ``(d) Authorized Administrative Expenses.--For the purposes of this 
section, authorized administrative expenses shall include all ordinary 
and necessary expenses, including all compensation for personnel and 
consultants, expenses for computer usage, or space needs of the 
Corporation and similar expenses. Funds authorized for administrative 
expenses shall not be available for the acquisition of real property.
    ``(e) Project Monitoring.--The Board may establish, in the bylaws 
of the Board, a percent of funds provided under subsection (c), not to 
exceed 1 percent per project award, for any commercialization project 
to be expended from project awards that shall be used to ensure that 
project funds are being utilized in accordance with the project 
agreement.
    ``(f) Termination of the Fund.--On expiration of the authority 
provided by this subtitle, all assets (after payment of all outstanding 
obligations) of the Fund shall revert to the general fund of the 
Treasury.
    ``(g) Authorization of Appropriations; Capitalization.--
            ``(1) Authorization of appropriation.--There are authorized 
        to be appropriated to the Fund $75,000,000 for each of fiscal 
        years 1996 through 2002.
            ``(2) Capitalization.--The Executive Director may pay as 
        capital of the Corporation, from amounts made available through 
        annual appropriations, $75,000,000 for each of fiscal years 
        1996 through 2002. On the payment of capital by the Executive 
        Director, the Corporation shall issue an equivalent amount of 
        capital stock to the Secretary of the Treasury.
            ``(3) Transfer.--All obligations, assets, and related 
        rights and responsibilities of the Alternative Agricultural 
        Research and Commercialization Center established under section 
        1658 of the Food, Agriculture, Conservation, and Trade Act of 
        1990 (7 U.S.C. 5902) (as in effect on the day before the 
        effective date of the Agricultural Reform and Improvement Act 
        of 1996) are transferred to the Corporation.''.

SEC. 729. PROCUREMENT PREFERENCES FOR PRODUCTS RECEIVING CORPORATION 
              ASSISTANCE.

    Subtitle G of title XVI of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 5901 et seq.) is amended by adding at the 
end the following:

``SEC. 1665. PROCUREMENT OF ALTERNATIVE AGRICULTURAL RESEARCH AND 
              COMMERCIALIZATION PRODUCTS.

    ``(a) Definition of Executive Agency.--In this section, the term 
`executive agency' has the meaning provided the term in section 4(1) of 
the Office of Federal Procurement Policy Act (41 U.S.C. 403(1)).
    ``(b) Procurement.--To further the achievement of the purposes 
specified in section 1657(b), an executive agency may, for any 
procurement involving the acquisition of property, establish set-asides 
and preferences for property that has been commercialized with 
assistance provided under this subtitle.
    ``(c) Set-Asides.--Procurements solely for property may be set-
aside exclusively for products developed with commercialization 
assistance provided under section 1661.
    ``(d) Preferences.--Preferences for property developed with 
assistance provided under this subtitle in procurements involving the 
acquisition of property may be--
            ``(1) a price preference, if the procurement is solely for 
        property, of not greater than a percentage to be determined 
        within the sole discretion of the head of the procuring agency; 
        or
            ``(2) a technical evaluation preference included as an 
        award factor or subfactor as determined within the sole 
        discretion of the head of the procuring agency.
    ``(e) Notice.--Each competitive solicitation or invitation for bids 
selected by an executive agency for a set-aside or preference under 
this section shall contain a provision notifying offerors where a list 
of products eligible for the set aside or preference may be obtained.
    ``(f) Eligibility.--Offerors shall receive the set aside or 
preference required under this section if, in the case of products 
developed with financial assistance under--
            ``(1) section 1660, less than 10 years have elapsed since 
        the expiration of the grant, cooperative agreement, or 
        contract;
            ``(2) paragraph (1) or (2) of section 1661(a), less than 5 
        years have elapsed since the date the loan was made or insured;
            ``(3) section 1661(a)(3), less than 5 years have elapsed 
        since the date of sale of any remaining government equity 
        interest in the company; or
            ``(4) section 1661(a)(4), less than 5 years have elapsed 
        since the date of the final payment on the repayable grant.''.

SEC. 730. BUSINESS PLAN AND FEASIBILITY STUDY AND REPORT.

    (a) Business Plan.--Not later than 180 days after the date of 
enactment of this Act, the Alternative Agricultural Research and 
Commercialization Corporation established under section 1658 of the 
Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5902) 
shall--
            (1) develop a 5-year business plan pursuant to section 
        1659(c)(1)(E) of the Food, Agriculture, Conservation, and Trade 
        Act of 1990 (as amended by section 723); and
            (2) submit the plan to the Secretary of Agriculture, the 
        Committee on Agriculture of the House of Representatives, and 
        the Committee on Agriculture, Nutrition, and Forestry of the 
        Senate.
    (b) Feasibility Study and Report.--
            (1) Study.--The Secretary of Agriculture shall conduct a 
        study of and prepare a report on the continued feasibility of 
        the Alternative Agricultural Research and Commercialization 
        Corporation. In conducting the study, the Secretary shall 
        examine options for privatizing the Corporation and converting 
        the Corporation to a Government sponsored enterprise.
            (2) Report.--Not later than December 31, 2001, the 
        Secretary shall transmit the report to the Committee on 
        Agriculture of the House of Representatives and the Committee 
        on Agriculture, Nutrition, and Forestry of the Senate.

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

                     CHAPTER 1--GENERAL PROVISIONS

SEC. 741. WATER AND WASTE FACILITY LOANS AND GRANTS.

    (a) In General.--Section 306(a) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1926(a)) is amended--
            (1) in the first sentence of paragraph (2), by striking 
        ``$500,000,000'' and inserting ``$590,000,000'';
            (2) by striking paragraph (7) and inserting the following:
            ``(7) Definition of rural and rural areas.--For the purpose 
        of water and waste disposal grants and direct and guaranteed 
        loans provided under paragraphs (1) and (2), the terms `rural' 
        and `rural area' shall mean a city, town, or unincorporated 
        area that has a population of no more than 10,000 
        inhabitants.'';
            (3) by striking paragraphs (9), (10), and (11) and 
        inserting the following:
            ``(9) Conformity with state drinking water standards.--No 
        Federal funds shall be made available under this section unless 
        the Secretary determines that the water system seeking funding 
        will make significant progress toward meeting the standards 
        established under title XIV of the Public Health Service Act 
        (commonly known as the `Safe Drinking Water Act') (42 U.S.C. 
        300f et seq.).
            ``(10) Conformity with federal and state water pollution 
        control standards.--In the case of a water treatment discharge 
        or waste disposal system seeking funding, no Federal funds 
        shall be made available under this section unless the Secretary 
        determines that the effluent from the system conforms with 
        applicable Federal and State water pollution control standards.
            ``(11) Rural business opportunity grants.--
                    ``(A) In general.--The Secretary may make grants, 
                not to exceed $1,500,000 annually, to public bodies, 
                private nonprofit community development corporations or 
                entities, or such other agencies as the Secretary may 
                select to enable the recipients--
                            ``(i) to identify and analyze business 
                        opportunities, including opportunities in 
                        export markets, that will use local rural 
                        economic and human resources;
                            ``(ii) to identify, train, and provide 
                        technical assistance to existing or prospective 
                        rural entrepreneurs and managers;
                            ``(iii) to establish business support 
                        centers and otherwise assist in the creation of 
                        new rural businesses, the development of 
                        methods of financing local businesses, and the 
                        enhancement of the capacity of local 
                        individuals and entities to engage in sound 
                        economic activities;
                            ``(iv) to conduct regional, community, and 
                        local economic development planning and 
                        coordination, and leadership development; and
                            ``(v) to establish centers for training, 
                        technology, and trade that will provide 
                        training to rural businesses in the utilization 
                        of interactive communications technologies to 
                        develop international trade opportunities and 
                        markets.
                    ``(B) Criteria.--In awarding the grants, the 
                Secretary shall consider, among other criteria to be 
                established by the Secretary--
                            ``(i) the extent to which the applicant 
                        provides development services in the rural 
                        service area of the applicant; and
                            ``(ii) the capability of the applicant to 
                        carry out the purposes of this section.
                    ``(C) Coordination.--The Secretary shall ensure, to 
                the maximum extent practicable, that assistance 
                provided under this paragraph is coordinated with and 
                delivered in cooperation with similar services or 
                assistance provided to rural residents by the 
                Cooperative State Research, Education, and Extension 
                Service or other Federal agencies.
                    ``(D) Authorization of appropriations.--There are 
                authorized to be appropriated to carry out this 
                paragraph $7,500,000 for each of fiscal years 1996 
                through 2002.'';
            (4) by striking paragraphs (14) and (15); and
            (5) in paragraph (16)--
                    (A) by striking ``(16)(A) The'' and inserting the 
                following:
            ``(16) Rural water and wastewater technical assistance and 
        training programs.--
                    ``(A) In general.--The'';
                    (B) in subparagraph (A)--
                            (i) by striking ``(i) identify'' and 
                        inserting the following:
                            ``(i) identify'';
                            (ii) by striking ``(ii) prepare'' and 
                        inserting the following:
                            ``(ii) prepare''; and
                            (iii) by striking ``(iii) improve'' and 
                        inserting the following:
                            ``(iii) improve'';
                    (C) in subparagraph (B), by striking ``(B) In'' and 
                inserting the following:
                    ``(B) Selection priority.--In''; and
                    (D) in subparagraph (C)--
                            (i) by striking ``(C) Not'' and inserting 
                        the following:
                    ``(C) Funding.--Not''; and
                            (ii) by striking ``2 per centum of any 
                        funds provided in Appropriations Acts'' and 
                        inserting ``3 percent of any funds 
                        appropriated''.
    (b) Conforming Amendments.--
            (1) Section 307(a)(6)(B) of the Consolidated Farm and Rural 
        Development Act (7 U.S.C. 1927(a)(6)(B)) (as amended by section 
        651(a)(2)) is further amended--
                    (A) by striking clause (ii); and
                    (B) by redesignating clauses (iii) and (iv) as 
                clauses (ii) and (iii), respectively.
            (2) The second sentence of section 309A(a) of the 
        Consolidated Farm and Rural Development Act (7 U.S.C. 1929a(a)) 
        is amended by striking ``, 306(a)(14),''.

SEC. 742. EMERGENCY COMMUNITY WATER ASSISTANCE GRANT PROGRAM FOR SMALL 
              COMMUNITIES.

    Section 306A of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1926a) is amended--
            (1) in subsection (e)--
                    (A) by striking paragraph (1) and inserting the 
                following:
            ``(1) Maximum income.--No grant provided under this section 
        may be used to assist any rural area or community that has a 
        median household income in excess of the State nonmetropolitan 
        median household income according to the most recent decennial 
        census of the United States.''; and
                    (B) in paragraph (2), by striking ``5,000'' and 
                inserting ``3,000''; and
            (2) by striking subsection (i) and inserting the following:
    ``(i) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $35,000,000 for each of fiscal 
years 1996 through 2002.''.

SEC. 743. EMERGENCY COMMUNITY WATER ASSISTANCE GRANT PROGRAM FOR 
              SMALLEST COMMUNITIES.

    Section 306B of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1926b) is repealed.

SEC. 744. AGRICULTURAL CREDIT INSURANCE FUND.

    Section 309(f) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1929(f)) is amended--
            (1) by striking paragraph (1); and
            (2) by redesignating paragraphs (2) through (6) as 
        paragraphs (1) through (5), respectively.

SEC. 745. RURAL DEVELOPMENT INSURANCE FUND.

    Section 309A(g) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1929a(g)) is amended--
            (1) by striking paragraph (1); and
            (2) by redesignating paragraphs (2) through (8) as 
        paragraphs (1) through (7), respectively.

SEC. 746. INSURED WATERSHED AND RESOURCE CONSERVATION AND DEVELOPMENT 
              LOANS.

    Section 310A of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1931) is repealed.

SEC. 747. RURAL INDUSTRIALIZATION ASSISTANCE.

    (a) In General.--Section 310B of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1932) is amended--
            (1) in subsection (b), by striking ``(b)(1)'' and all that 
        follows through ``(2) The'' and inserting the following:
    ``(b) Solid Waste Management Grants.--The'';
            (2) in subsection (c)--
                    (A) by striking ``(c)(1) The'' and inserting the 
                following:
    ``(c) Rural Business Enterprise Grants.--
            ``(1) In general.--The'';
                    (B) in paragraph (1), by inserting ``(including 
                nonprofit entities)'' after ``private business 
                enterprises''; and
                    (C) in paragraph (2)--
                            (i) by striking ``(2) The'' and inserting 
                        the following:
            ``(2) Passenger transportation services or facilities.--
        The''; and
                            (ii) by striking ``make grants'' and 
                        inserting ``award grants on a competitive 
                        basis''; and
            (3) by striking subsections (e), (g), (h), and (i);
            (4) by redesignating subsections (f) and (j) as subsections 
        (e) and (f), respectively;
            (5) by striking subsection (e) (as so redesignated) and 
        inserting the following:
    ``(e) Rural Cooperative Development Grants.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Nonprofit institution.--The term `nonprofit 
                institution' means any organization or institution, 
                including an accredited institution of higher 
                education, no part of the net earnings of which inures, 
                or may lawfully inure, to the benefit of any private 
                shareholder or individual.
                    ``(B) United states.--The term `United States' 
                means the several States, the District of Columbia, the 
                Commonwealth of Puerto Rico, the Virgin Islands, Guam, 
                American Samoa, and the other territories and 
                possessions of the United States.
            ``(2) Grants.--The Secretary shall make grants under this 
        subsection to nonprofit institutions for the purpose of 
        enabling the institutions to establish and operate centers for 
        rural cooperative development.
            ``(3) Goals.--The goals of a center funded under this 
        subsection shall be to facilitate the creation of jobs in rural 
        areas through the development of new rural cooperatives, value 
        added processing, and rural businesses.
            ``(4) Application.--Any nonprofit institution seeking a 
        grant under paragraph (2) shall submit to the Secretary an 
        application containing a plan for the establishment and 
        operation by the institution of a center or centers for 
        cooperative development. The Secretary may approve the 
        application if the plan contains the following:
                    ``(A) A provision that substantiates that the 
                center will effectively serve rural areas in the United 
                States.
                    ``(B) A provision that the primary objective of the 
                center will be to improve the economic condition of 
                rural areas through cooperative development.
                    ``(C) A description of the activities that the 
                center will carry out to accomplish the objective. The 
                activities may include the following:
                            ``(i) Programs for applied research and 
                        feasibility studies that may be useful to 
                        individuals, cooperatives, small businesses, 
                        and other similar entities in rural areas 
                        served by the center.
                            ``(ii) Programs for the collection, 
                        interpretation, and dissemination of 
                        information that may be useful to individuals, 
                        cooperatives, small businesses, and other 
                        similar entities in rural areas served by the 
                        center.
                            ``(iii) Programs providing training and 
                        instruction for individuals, cooperatives, 
                        small businesses, and other similar entities in 
                        rural areas served by the center.
                            ``(iv) Programs providing loans and grants 
                        to individuals, cooperatives, small businesses, 
                        and other similar entities in rural areas 
                        served by the center.
                            ``(v) Programs providing technical 
                        assistance, research services, and advisory 
                        services to individuals, cooperatives, small 
                        businesses, and other similar entities in rural 
                        areas served by the center.
                            ``(vi) Programs providing for the 
                        coordination of services and sharing of 
                        information among the center.
                    ``(D) A description of the contributions that the 
                activities are likely to make to the improvement of the 
                economic conditions of the rural areas for which the 
                center will provide services.
                    ``(E) Provisions that the center, in carrying out 
                the activities, will seek, where appropriate, the 
                advice, participation, expertise, and assistance of 
                representatives of business, industry, educational 
                institutions, the Federal Government, and State and 
                local governments.
                    ``(F) Provisions that the center will take all 
                practicable steps to develop continuing sources of 
                financial support for the center, particularly from 
                sources in the private sector.
                    ``(G) Provisions for--
                            ``(i) monitoring and evaluating the 
                        activities by the nonprofit institution 
                        operating the center; and
                            ``(ii) accounting for money received by the 
                        institution under this section.
            ``(5) Awarding grants.--Grants made under paragraph (2) 
        shall be made on a competitive basis. In making grants under 
        paragraph (2), the Secretary shall give preference to grant 
        applications providing for the establishment of centers for 
        rural cooperative development that--
                    ``(A) demonstrate a proven track record in 
                administering a nationally coordinated, regionally or 
                State-wide operated project;
                    ``(B) demonstrate previous expertise in providing 
                technical assistance in rural areas;
                    ``(C) demonstrate the ability to assist in the 
                retention of existing businesses, facilitate the 
                establishment of new cooperatives and new cooperative 
                approaches, and generate new employment opportunities 
                that will improve the economic conditions of rural 
                areas;
                    ``(D) demonstrate the ability to create horizontal 
                linkages among businesses within and among various 
                sectors in rural America and vertical linkages to 
                domestic and international markets;
                    ``(E) commit to providing technical assistance and 
                other services to underserved and economically 
                distressed areas in rural America; and
                    ``(F) commit to providing greater than a 25 percent 
                matching contribution with private funds and in-kind 
                contributions.
            ``(6) Two-year grants.--The Secretary shall evaluate 
        programs receiving assistance under this subsection and, if the 
        Secretary determines it to be in the best interest of the 
        Federal Government, the Secretary may approve grants under this 
        subsection for up to 2 years.
            ``(7) Technical assistance to prevent excessive 
        unemployment or underemployment.--In carrying out this 
        subsection, the Secretary may provide technical assistance to 
        alleviate or prevent conditions of excessive unemployment, 
        underemployment, outmigration, or low employment growth in 
        economically distressed rural areas that the Secretary 
        determines have a substantial need for the assistance. The 
        assistance may include planning and feasibility studies, 
        management and operational assistance, and studies evaluating 
        the need for development potential of projects that increase 
        employment and improve economic growth in the areas.
            ``(8) Grants to defray administrative costs.--The Secretary 
        may make grants to defray not to exceed 75 percent of the costs 
        incurred by organizations and public bodies to carry out 
        projects for which grants or loans are made under this 
        subsection. For purposes of determining the non-Federal share 
        of the costs, the Secretary shall consider contributions in 
        cash and in kind, fairly evaluated, including premises, 
        equipment, and services.
            ``(9) Authorization of appropriations.--There are 
        authorized to be appropriated to carry out this subsection 
        $50,000,000 for each of fiscal years 1996 through 2002.''; and
            (6) by adding at the end the following:
    ``(g) Loan Guarantees for the Purchase of Cooperative Stock.--
            ``(1) Definition of farmer.--In this subsection, the term 
        `farmer' means any farmer that meets the family farmer 
        definition, as determined by the Secretary.
            ``(2) Loan guarantees.--The Secretary may guarantee loans 
        under this section to individual farmers for the purpose of 
        purchasing capital stock of a farmer cooperative established 
        for the purpose of processing an agricultural commodity.
            ``(3) Eligibility.--To be eligible for a loan guarantee 
        under this subsection, a farmer must produce the agricultural 
        commodity that will be processed by the cooperative.
            ``(4) Collateral.--To be eligible for a loan guarantee 
        under this subsection for the establishment of a cooperative, 
        the borrower of the loan must pledge collateral to secure at 
        least 25 percent of the amount of the loan.''.
    (b) Conforming Amendments.--
            (1) Clause (iii) of section 307(a)(6)(B) of the 
        Consolidated Farm and Rural Development Act (7 U.S.C. 
        1927(a)(6)(B)) (as redesignated by section 741(b)(1)(B)) is 
        amended by striking ``subsections (d) and (e) of section 310B'' 
        and inserting ``section 310B(d)''.
            (2) Section 232(c)(2) of the Department of Agriculture 
        Reorganization Act of 1994 (7 U.S.C. 6942(c)(2)) is amended--
                    (A) by striking ``310B(b)(2)'' and inserting 
                ``310B(b)''; and
                    (B) by striking ``1932(b)(2)'' and inserting 
                ``1932(b)''.
            (3) Section 233(b) of the Department of Agriculture 
        Reorganization Act of 1994 (7 U.S.C. 6943(b)) is amended--
                    (A) by striking paragraph (2); and
                    (B) by redesignating paragraph (3) as paragraph 
                (2).

SEC. 748. ADMINISTRATION.

    Section 331(b)(4) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1981(b)(4)) is amended--
            (1) by inserting after ``claims'' the following: 
        ``(including debts and claims arising from loan guarantees)'';
            (2) by striking ``Farmers Home Administration or'' and 
        inserting ``Consolidated Farm Service Agency, Rural Utilities 
        Service, Rural Housing and Community Development Service, Rural 
        Business and Cooperative Development Service, or a successor 
        agency, or''; and
            (3) by inserting after ``activities under the Housing Act 
        of 1949.'' the following: ``In the case of a security 
        instrument entered into under the Rural Electrification Act of 
        1936 (7 U.S.C. 901 et seq.), the Secretary shall notify the 
        Attorney General of the intent of the Secretary to exercise the 
        authority of the Secretary under this paragraph.''.

SEC. 749. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--Section 338 of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1988) is amended--
            (1) by striking subsections (b), (c), (d), and (e); and
            (2) by redesignating subsection (f) as subsection (b).
    (b) Conforming Amendments.--
            (1) The first sentence of section 309(g)(1) of the 
        Consolidated Farm and Rural Development Act (7 U.S.C. 
        1929(g)(1)) is amended by inserting after ``section 338(c)'' 
        the following: ``(before the amendment made by section 
        447(a)(1) of the Agricultural Reform and Improvement Act of 
        1996)''.
            (2) Section 343(b) of the Consolidated Farm and Rural 
        Development Act (7 U.S.C. 1991(b)) is amended by striking 
        ``338(f),'' and inserting ``338(b),''.

SEC. 750. TESTIMONY BEFORE CONGRESSIONAL COMMITTEES.

    Section 345 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1993) is repealed.

SEC. 751. PROHIBITION ON USE OF LOANS FOR CERTAIN PURPOSES.

    Section 363 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 2006e) is amended by adding at the end the following: ``This 
section shall not apply to a loan made or guaranteed under this title 
for a utility line.''.

SEC. 752. RURAL DEVELOPMENT CERTIFIED LENDERS PROGRAM.

    The Consolidated Farm and Rural Development Act is amended by 
inserting after section 363 (7 U.S.C. 2006e) the following:

``SEC. 364. RURAL DEVELOPMENT CERTIFIED LENDERS PROGRAM.

    ``(a) Certified Lenders Program.--
            ``(1) In general.--The Secretary may establish a program 
        under which the Secretary may guarantee a loan for any rural 
        development program that is made by a lender certified by the 
        Secretary.
            ``(2) Certification requirements.--The Secretary may 
        certify a lender if the lender meets such criteria as the 
        Secretary may prescribe in regulations, including the ability 
        of the lender to properly make, service, and liquidate the 
        guaranteed loans of the lender.
            ``(3) Condition of certification.--As a condition of 
        certification, the Secretary may require the lender to 
        undertake to service the guaranteed loan using standards that 
        are not less stringent than generally accepted banking 
        standards concerning loan servicing that are used by prudent 
        commercial or cooperative lenders.
            ``(4) Guarantee.--Notwithstanding any other provision of 
        law, the Secretary may guarantee not more than 80 percent of a 
        loan made by a certified lender described in paragraph (1), if 
        the borrower of the loan meets the eligibility requirements and 
        such other criteria for the loan guarantee that are established 
        by the Secretary.
            ``(5) Certifications.--With respect to loans to be 
        guaranteed, the Secretary may permit a certified lender to make 
        appropriate certifications (as provided in regulations issued 
        by the Secretary) --
                    ``(A) relating to issues such as creditworthiness, 
                repayment ability, adequacy of collateral, and 
                feasibility of the operation; and
                    ``(B) that the borrower is in compliance with all 
                requirements of law, including regulations issued by 
                the Secretary.
            ``(6) Relationship to other requirements.--This subsection 
        shall not affect the responsibility of the Secretary to 
        determine eligibility, review financial information, and 
        otherwise assess an application.
    ``(b) Preferred Certified Lenders Program.--
            ``(1) In general.--The Secretary may establish a preferred 
        certified lenders program for lenders who establish their--
                    ``(A) knowledge of, and experience under, the 
                program established under subsection (a);
                    ``(B) knowledge of the regulations concerning the 
                particular guaranteed loan program; and
                    ``(C) proficiency related to the certified lender 
                program requirements.
            ``(2) Additional lending institutions.--The Secretary may 
        certify any lending institution as a preferred certified lender 
        if the institution meets such additional criteria as the 
        Secretary may prescribe by regulation.
            ``(3) Revocation of designation.--The designation of a 
        lender as a preferred certified lender shall be revoked if the 
        Secretary determines that the lender is not adhering to the 
        rules and regulations applicable to the program or if the loss 
        experiences of a preferred certified lender are greater than 
        other preferred certified lenders, except that the suspension 
        or revocation shall not affect any outstanding guarantee.
            ``(4) Condition of certification.--As a condition of the 
        preferred certification, the Secretary shall require the lender 
        to undertake to service the loan guaranteed by the Secretary 
        under this subsection using generally accepted banking 
        standards concerning loan servicing employed by prudent 
        commercial or cooperative lenders. The Secretary shall, at 
        least annually, monitor the performance of each preferred 
        certified lender to ensure that the conditions of the 
        certification are being met.
            ``(5) Effect of preferred lender certification.--
        Notwithstanding any other provision of law, the Secretary may--
                    ``(A) guarantee not more than 80 percent of any 
                approved loan made by a preferred certified lender as 
                described in this subsection, if the borrower meets the 
                eligibility requirements and such other criteria as may 
                be applicable to loans guaranteed by the Secretary; and
                    ``(B) permit preferred certified lenders to make 
                all decisions, with respect to loans to be guaranteed 
                by the Secretary under this subsection relating to 
                creditworthiness, the closing, monitoring, collection, 
                and liquidation of loans, and to accept appropriate 
                certifications, as provided in regulations issued by 
                the Secretary, that the borrower is in compliance with 
                all requirements of law and regulations issued by the 
                Secretary.''.

SEC. 753. SYSTEM FOR DELIVERY OF CERTAIN RURAL DEVELOPMENT PROGRAMS.

    (a) In General.--Section 365 of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 2008) is repealed.
    (b) Conforming Amendments.--
            (1) Section 2310 of the Food, Agriculture, Conservation, 
        and Trade Act of 1990 (7 U.S.C. 2007) is amended--
                    (A) in subsection (a), by striking ``or the program 
                established in sections 365 and 366 of the Consolidated 
                Farm and Rural Development Act (as added by chapter 3 
                of this subtitle)'';
                    (B) in subsection (b)--
                            (i) by striking ``States.--'' and all that 
                        follows through ``partnerships.--The'' in 
                        paragraph (1) and inserting ``States.--The''; 
                        and
                            (ii) by striking paragraph (2);
                    (C) in subsection (c)--
                            (i) by striking ``Projects.--'' and all 
                        that follows through ``partnerships.--Chapter'' 
                        in paragraph (1) and inserting ``Projects.--
                        Chapter'';
                            (ii) by striking ``subsection (b)(1)'' and 
                        inserting ``subsection (b)''; and
                            (iii) by striking paragraph (2); and
                    (D) in subsection (d), by striking ``and sections 
                365, 366, 367, and 368(b) of the Consolidated Farm and 
                Rural Development Act (as added by chapter 3 of this 
                subtitle)''.
            (2) Section 2375 of the Food, Agriculture, Conservation, 
        and Trade Act of 1990 (7 U.S.C. 6613) is amended--
                    (A) in subsection (e), by striking ``, as defined 
                in section 365(b)(2) of the Consolidated Farm and Rural 
                Development Act,''; and
                    (B) by adding at the end the following:
    ``(g) Definition of Designated Rural Development Program.--In this 
section, the term `designated rural development program' means a 
program carried out under section 304(b), 306(a), or 310B(e) of the 
Consolidated Farm and Rural Development Act (7 U.S.C. 1924(b), 1926(a), 
and 1932(e)), or under section 1323 of the Food Security Act of 1985 
(Public Law 99-198; 7 U.S.C. 1932 note), for which funds are available 
at any time during the fiscal year under the section.''.
            (3) Paragraph (2) of section 233(b) of the Department of 
        Agriculture Reorganization Act of 1994 (7 U.S.C. 6943(b)) (as 
        redesignated by section 747(b)(3)(B)) is amended by striking 
        ``sections 365 through 369 of the Consolidated Farm and Rural 
        Development Act (7 U.S.C. 2008-2008d)'' and inserting ``section 
        369 of the Consolidated Farm and Rural Development Act (7 
        U.S.C. 2008d)''.

SEC. 754. STATE RURAL ECONOMIC DEVELOPMENT REVIEW PANEL.

    Section 366 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 2008a) is repealed.

SEC. 755. LIMITED TRANSFER AUTHORITY OF LOAN AMOUNTS.

    Section 367 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 2008b) is repealed.

SEC. 756. ALLOCATION AND TRANSFER OF LOAN GUARANTEE AUTHORITY.

    Section 368 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 2008c) is repealed.

SEC. 757. NATIONAL SHEEP INDUSTRY IMPROVEMENT CENTER.

    The Consolidated Farm and Rural Development Act (as amended by 
section 641) is amended by adding at the end the following:

``SEC. 375. NATIONAL SHEEP INDUSTRY IMPROVEMENT CENTER.

    ``(a) Definitions.--In this section:
            ``(1) Board.--The term `Board' means the Board of Directors 
        established under subsection (f).
            ``(2) Center.--The term `Center' means the National Sheep 
        Industry Improvement Center established under subsection (b).
            ``(3) Eligible entity.--The term `eligible entity' means an 
        entity that promotes the betterment of the United States lamb 
        or wool industry and that is--
                    ``(A) a public, private, or cooperative 
                organization;
                    ``(B) an association, including a corporation not 
                operated for profit;
                    ``(C) a federally recognized Indian Tribe; or
                    ``(D) a public or quasi-public agency.
            ``(4) Fund.--The term `Fund' means the Natural Sheep 
        Improvement Center Revolving Fund established under subsection 
        (e).
    ``(b) Establishment of Center.--The Secretary shall establish a 
National Sheep Industry Improvement Center.
    ``(c) Purposes.--The purposes of the Center shall be to--
            ``(1) promote strategic development activities and 
        collaborative efforts by private and State entities to maximize 
        the impact of Federal assistance to strengthen and enhance the 
        production and marketing of lamb and wool in the United States;
            ``(2) optimize the use of available human capital and 
        resources within the sheep industry;
            ``(3) provide assistance to meet the needs of the sheep 
        industry for infrastructure development, business development, 
        production, resource development, and market and environmental 
        research;
            ``(4) advance activities that empower and build the 
        capacity of the United States sheep industry to design unique 
        responses to the special needs of the lamb and wool industries 
        on both a regional and national basis; and
            ``(5) adopt flexible and innovative approaches to solving 
        the long-term needs of the United States sheep industry.
    ``(d) Strategic Plan.--
            ``(1) In general.--The Center shall submit to the Secretary 
        an annual strategic plan for the delivery of financial 
        assistance provided by the Center.
            ``(2) Requirements.--A strategic plan shall identify--
                    ``(A) goals, methods, and a benchmark for measuring 
                the success of carrying out the plan and how the plan 
                relates to the national and regional goals of the 
                Center;
                    ``(B) the amount and sources of Federal and non-
                Federal funds that are available for carrying out the 
                plan;
                    ``(C) funding priorities;
                    ``(D) selection criteria for funding; and
                    ``(E) a method of distributing funding.
    ``(e) Revolving Fund.--
            ``(1) Establishment.--There is established in the Treasury 
        the Natural Sheep Improvement Center Revolving Fund. The Fund 
        shall be available to the Center, without fiscal year 
        limitation, to carry out the authorized programs and activities 
        of the Center under this section.
            ``(2) Contents of fund.--There shall be deposited in the 
        Fund--
                    ``(A) such amounts as may be appropriated, 
                transferred, or otherwise made available to support 
                programs and activities of the Center;
                    ``(B) payments received from any source for 
                products, services, or property furnished in connection 
                with the activities of the Center;
                    ``(C) fees and royalties collected by the Center 
                from licensing or other arrangements relating to 
                commercialization of products developed through 
                projects funded, in whole or part, by grants, 
                contracts, or cooperative agreements executed by the 
                Center;
                    ``(D) proceeds from the sale of assets, loans, and 
                equity interests made in furtherance of the purposes of 
                the Center;;
                    ``(E) donations or contributions accepted by the 
                Center to support authorized programs and activities; 
                and
                    ``(F) any other funds acquired by the Center.
            ``(3) Use of fund.--
                    ``(A) In general.--The Center may use amounts in 
                the Fund to make grants and loans to eligible entities 
                in accordance with a strategic plan submitted under 
                subsection (d).
                    ``(B) Continued existence.--The Center shall manage 
                the Fund in a manner that ensures that sufficient 
                amounts are available in the Fund to carry out 
                subsection (c).
                    ``(C) Diverse area.--The Center shall, to the 
                maximum extent practicable, use the Fund to serve broad 
                geographic areas and regions of diverse production.
                    ``(D) Variety of loans and grants.--The Center 
                shall, to the maximum extent practicable, use the Fund 
                to provide a variety of intermediate- and long-term 
                grants and loans.
                    ``(E) Administration.--The Center may not use more 
                than 3 percent of the amounts in the Fund for a fiscal 
                year for the administration of the Center.
                    ``(F) Influencing legislation.--None of the amounts 
                in the Fund may be used to influence legislation.
                    ``(G) Accounting.--To be eligible to receive 
                amounts from the Fund, an entity must agree to account 
                for the amounts using generally accepted accounting 
                principles.
                    ``(H) Uses of fund.--The Center may use amounts in 
                the Fund to--
                            ``(i) participate with Federal and State 
                        agencies in financing activities that are in 
                        accordance with a strategic plan submitted 
                        under subsection (d), including participation 
                        with several States in a regional effort;
                            ``(ii) participate with other public and 
                        private funding sources in financing activities 
                        that are in accordance with the strategic plan, 
                        including participation in a regional effort;
                            ``(iii) provide security for, or make 
                        principle or interest payments on, revenue or 
                        general obligation bonds issued by a State, if 
                        the proceeds from the sale of the bonds are 
                        deposited in the Fund;
                            ``(iv) accrue interest;
                            ``(v) guarantee or purchase insurance for 
                        local obligations to improve credit market 
                        access or reduce interest rates for a project 
                        that is in accordance with the strategic plan; 
                        or
                            ``(vi) sell assets, loans, and equity 
                        interests acquired in connection with the 
                        financing of projects funded by the Center.
            ``(4) Loans.--
                    ``(A) Rate.--A loan from the Fund may be made at an 
                interest rate that is below the market rate or may be 
                interest free.
                    ``(B) Term.--The term of a loan may not exceed the 
                shorter of--
                            ``(i) the useful life of the activity 
                        financed; or
                            ``(ii) 40 years.
                    ``(C) Source of repayment.--The Center may not make 
                a loan from the Fund unless the recipient establishes 
                an assured source of repayment.
                    ``(D) Proceeds.--All payments of principal and 
                interest on a loan made from the Fund shall be 
                deposited into the Fund.
            ``(5) Maintenance of effort.--The Center shall use the Fund 
        only to supplement and not to supplant Federal, State, and 
        private funds expended for rural development.
            ``(6) Funding.--
                    ``(A) Deposit of funds.--All Federal and non-
                Federal amounts received by the Center to carry out 
                this section shall be deposited in the Fund.
                    ``(B) Mandatory funds.--Out of any moneys in the 
                Treasury not otherwise appropriated, the Secretary of 
                the Treasury shall provide to the Center not to exceed 
                $20,000,000 to carry out this section.
                    ``(C) Additional funds.--In addition to any funds 
                provided under subparagraph (B), there is authorized to 
                be appropriated to carry out this section $30,000,000 
                to carry out this section.
                    ``(D) Privatization.--Federal funds shall not be 
                used to carry out this section beginning on the earlier 
                of--
                            ``(i) the date that is 10 years after the 
                        effective date of this section; or
                            ``(ii) the day after a total of $50,000,000 
                        is made available under subparagraphs (B) and 
                        (C) to carry out this section.
    ``(f) Board of Directors.--
            ``(1) In general.--The management of the Center shall be 
        vested in a Board of Directors.
            ``(2) Powers.--The Board shall--
                    ``(A) be responsible for the general supervision of 
                the Center;
                    ``(B) review any grant, loan, contract, or 
                cooperative agreement to be made or entered into by the 
                Center and any financial assistance provided to the 
                Center;
                    ``(C) make the final decision, by majority vote, on 
                whether and how to provide assistance to an applicant; 
                and
                    ``(D) develop and establish a budget plan and a 
                long-term operating plan to carry out the goals of the 
                Center.
            ``(3) Composition.--The Board shall be composed of--
                    ``(A) 7 voting members, of whom--
                            ``(i) 4 members shall be active producers 
                        of sheep in the United States;
                            ``(ii) 2 members shall have expertise in 
                        finance and management; and
                            ``(iii) 1 member shall have expertise in 
                        lamb and wool marketing; and
                    ``(B) 2 nonvoting members, of whom--
                            ``(i) 1 member shall be the Under Secretary 
                        of Agriculture for Rural Economic and Community 
                        Development; and
                            ``(ii) 1 member shall be the Under 
                        Secretary of Agriculture for Research, 
                        Education, and Economics.
            ``(4) Election.--A voting member of the Board shall be 
        chosen in an election of the members of a national organization 
        selected by the Secretary that--
                    ``(A) consists only of sheep producers in the 
                United States; and
                    ``(B) has as the primary interest of the 
                organization the production of lamb and wool in the 
                United States.
            ``(5) Term of office.--
                    ``(A) In general.--Subject to subparagraph (B), the 
                term of office of a voting member of the Board shall be 
                3 years.
                    ``(B) Staggered initial terms.--The initial voting 
                members of the Board (other than the chairperson of the 
                initially established Board) shall serve for staggered 
                terms of 1, 2, and 3 years, as determined by the 
                Secretary.
                    ``(C) Reelection.--A voting member may be reelected 
                for not more than 1 additional term.
            ``(6) Vacancy.--
                    ``(A) In general.--A vacancy on the Board shall be 
                filled in the same manner as the original Board.
                    ``(B) Reelection.--A member elected to fill a 
                vacancy for an unexpired term may be reelected for 1 
                full term.
            ``(7) Chairperson.--
                    ``(A) In general.--The Board shall select a 
                chairperson from among the voting members of the Board.
                    ``(B) Term.--The term of office of the chairperson 
                shall be 2 years.
            ``(8) Annual meeting.--
                    ``(A) In general.--The Board shall meet not less 
                than once each fiscal year at the call of the 
                chairperson or at the request of the executive director 
                appointed under subsection (g)(1).
                    ``(B) Location.--The location of a meeting of the 
                Board shall be established by the Board.
            ``(9) Voting.--
                    ``(A) Quorum.--A quorum of the Board shall consist 
                of a majority of the voting members.
                    ``(B) Majority vote.--A decision of the Board shall 
                be made by a majority of the voting members of the 
                Board.
            ``(10) Conflicts of interest.--
                    ``(A) In general.--A member of the Board shall not 
                vote on any matter respecting any application, 
                contract, claim, or other particular matter pending 
                before the Board in which, to the knowledge of the 
                member, an interest is held by--
                            ``(i) the member;
                            ``(ii) any spouse of the member;
                            ``(iii) any child of the member;
                            ``(iv) any partner of the member;
                            ``(v) any organization in which the member 
                        is serving as an officer, director, trustee, 
                        partner, or employee; or
                            ``(vi) any person with whom the member is 
                        negotiating or has any arrangement concerning 
                        prospective employment or with whom the member 
                        has a financial interest.
                    ``(B) Removal.--Any action by a member of the Board 
                that violates subparagraph (A) shall be cause for 
                removal from the Board.
                    ``(C) Validity of action.--An action by a member of 
                the Board that violates subparagraph (A) shall not 
                impair or otherwise affect the validity of any 
                otherwise lawful action by the Board.
                    ``(D) Disclosure.--
                            ``(i) In general.--If a member of the Board 
                        makes a full disclosure of an interest and, 
                        prior to any participation by the member, the 
                        Board determines, by majority vote, that the 
                        interest is too remote or too inconsequential 
                        to affect the integrity of any participation by 
                        the member, the member may participate in the 
                        matter relating to the interest.
                            ``(ii) Vote.--A member that discloses an 
                        interest under clause (i) shall not vote on a 
                        determination of whether the member may 
                        participate in the matter relating to the 
                        interest.
                    ``(E) Remands.--
                            ``(i) In general.--The Secretary may vacate 
                        and remand to the Board for reconsideration any 
                        decision made pursuant to subsection (e)(3)(H) 
                        if the Secretary determines that there has been 
                        a violation of this paragraph or any conflict 
                        of interest provision of the bylaws of the 
                        Board with respect to the decision.
                            ``(ii) Reasons.--In the case of any 
                        violation and remand of a funding decision to 
                        the Board under clause (i), the Secretary shall 
                        inform the Board of the reasons for the remand.
            ``(11) Compensation.--
                    ``(A) In general.--A member of the Board shall not 
                receive any compensation by reason of service on the 
                Board.
                    ``(B) Expenses.--A member of the Board shall be 
                reimbursed for travel, subsistence, and other necessary 
                expenses incurred by the member in the performance of a 
                duty of the member.
            ``(12) Bylaws.--The Board shall adopt, and may from time to 
        time amend, any bylaw that is necessary for the proper 
        management and functioning of the Center.
            ``(13) Public hearings.--Not later than 1 year after the 
        effective date of this section, the Board shall hold public 
        hearings on policy objectives of the program established under 
        this section.
            ``(14) Organizational system.--The Board shall provide a 
        system of organization to fix responsibility and promote 
        efficiency in carrying out the functions of the Board.
            ``(15) Use of department of agriculture.--The Board may, 
        with the consent of the Secretary, utilize the facilities of 
        and the services of employees of the Department of Agriculture, 
        without cost to the Center.
    ``(g) Officers and employees.--
            ``(1) Executive director.--
                    ``(A) In general.--The Board shall appoint an 
                executive director to be the chief executive officer of 
                the Center.
                    ``(B) Tenure.--The executive director shall serve 
                at the pleasure of the Board.
                    ``(C) Compensation.--Compensation for the executive 
                director shall be established by the Board.
            ``(2) Other officers and employees.--The Board may select 
        and appoint officers, attorneys, employees, and agents who 
        shall be vested with such powers and duties as the Board may 
        determine.
            ``(3) Delegation.--The Board may, by resolution, delegate 
        to the chairperson, the executive director, or any other 
        officer or employee any function, power, or duty of the Board 
        other than voting on a grant, loan, contract, agreement, 
        budget, or annual strategic plan.
    ``(h) Consultation.--To carry out this section, the Board may 
consult with--
            ``(1) State departments of agriculture;
            ``(2) Federal departments and agencies;
            ``(3) nonprofit development corporations;
            ``(4) colleges and universities;
            ``(5) banking and other credit-related agencies;
            ``(6) agriculture and agribusiness organizations; and
            ``(7) regional planning and development organizations.
    ``(i) Oversight.--
            ``(1) In general.--The Secretary shall review and monitor 
        compliance by the Board and the Center with this section.
            ``(2) Sanctions.--If, following notice and opportunity for 
        a hearing, the Secretary finds that the Board or the Center is 
        not in compliance with this section, the Secretary may--
                    ``(A) cease making deposits to the Fund;
                    ``(B) suspend the authority of the Center to 
                withdraw funds from the Fund; or
                    ``(C) impose other appropriate sanctions, including 
                recoupment of money improperly expended for purposes 
                prohibited or not authorized by this Act and 
                disqualification from receipt of financial assistance 
                under this section.
            ``(3) Removing sanctions.--The Secretary shall remove 
        sanctions imposed under paragraph (2) on a finding that there 
        is no longer any failure by the Board or the Center to comply 
        with this section or that the noncompliance shall be promptly 
        corrected.''.

             CHAPTER 2--RURAL COMMUNITY ADVANCEMENT PROGRAM

SEC. 761. RURAL COMMUNITY ADVANCEMENT PROGRAM.

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

           ``Subtitle E--Rural Community Advancement Program

``SEC. 381A. DEFINITIONS.

    ``In this subtitle:
            ``(1) Rural and rural area.--The terms `rural' and `rural 
        area' mean, subject to section 306(a)(7), a city, town, or 
        unincorporated area that has a population of 50,000 inhabitants 
        or less, other than an urbanized area immediately adjacent to a 
        city, town, or unincorporated area that has a population in 
        excess of 50,000 inhabitants.
            ``(2) State.--The term `State' means each of the 50 States, 
        the District of Columbia, the Commonwealth of Puerto Rico, 
        Guam, the Virgin Islands of the United States, American Samoa, 
        the Commonwealth of the Northern Mariana Islands, the Trust 
        Territory of the Pacific Islands, and the Federated States of 
        Micronesia.

``SEC. 381B. ESTABLISHMENT.

    ``The Secretary shall establish a rural community advancement 
program to provide grants, loans, loan guarantees, and other assistance 
to meet the rural development needs of local communities in States and 
federally recognized Indian tribes.

``SEC. 381C. NATIONAL OBJECTIVES.

    ``The national objectives of the program established under this 
subtitle shall be to--
            ``(1) promote strategic development activities and 
        collaborative efforts by State and local communities, and 
        federally recognized Indian tribes, to maximize the impact of 
        Federal assistance;
            ``(2) optimize the use of resources;
            ``(3) provide assistance in a manner that reflects the 
        complexity of rural needs, including the needs for business 
        development, health care, education, infrastructure, cultural 
        resources, the environment, and housing;
            ``(4) advance activities that empower, and build the 
        capacity of, State and local communities to design unique 
        responses to the special needs of the State and local 
        communities, and federally recognized Indian tribes, for rural 
        development assistance; and
            ``(5) adopt flexible and innovative approaches to solving 
        rural development problems.

``SEC. 381D. STRATEGIC PLANS.

    ``(a) In General.--The Secretary shall direct each of the Directors 
of Rural Economic and Community Development State Offices to prepare a 
strategic plan for each State for the delivery of assistance under this 
subtitle within the State.
    ``(b) Assistance.--
            ``(1) In general.--Financial assistance for rural 
        development allocated for a State under this subtitle shall be 
        used only for orderly community development that is consistent 
        with the strategic plan of the State.
            ``(2) Rural area.--Assistance under this subtitle may only 
        be provided in a rural area.
            ``(3) Small communities.--In carrying out this subtitle 
        within a State, the Secretary shall give priority to 
        communities with the smallest populations and lowest per capita 
        income.
    ``(c) Review.--The Secretary shall review the strategic plan of a 
State at least once every 5 years.
    ``(d) Contents.--A strategic plan of a State under this section 
shall be a plan that--
            ``(1) coordinates economic, human, and community 
        development plans and related activities proposed for an 
        affected area;
            ``(2) provides that the State and an affected community 
        (including local institutions and organizations that have 
        contributed to the planning process) shall act as full partners 
        in the process of developing and implementing the plan;
            ``(3) identifies goals, methods, and benchmarks for 
        measuring the success of carrying out the plan and how the plan 
        relates to local or regional ecosystems;
            ``(4) provides for the involvement, in the preparation of 
        the plan, of State, local, private, and public persons, State 
        rural development councils, federally-recognized Indian tribes, 
        and community-based organizations;
            ``(5) identifies the amount and source of Federal and non-
        Federal resources that are available for carrying out the plan; 
        and
            ``(6) includes such other information as may be required by 
        the Secretary.

``SEC. 381E. ACCOUNTS.

    ``(a) In General.--Notwithstanding any other provision of law, for 
each fiscal year, the Secretary shall consolidate into 3 accounts, 
corresponding to the 3 function categories established under subsection 
(c), the amounts made available for programs included in each function 
category.
    ``(b) Allocation Within Account.--The Secretary shall allocate the 
amounts in each account for such program purposes authorized for the 
corresponding function category among the States, as the Secretary may 
determine in accordance with this subtitle.
    ``(c) Function Categories.--For purposes of subsection (a):
            ``(1) Rural housing and community development.--The rural 
        housing and community development category shall include funds 
        made available for--
                    ``(A) community facility direct and guaranteed 
                loans provided under section 306(a)(1);
                    ``(B) community facility grants provided under 
                section 306(a)(21); and
                    ``(C) rental housing loans for new housing provided 
                under section 515 of the Housing Act of 1949 (42 U.S.C. 
                1485).
            ``(2) Rural utilities.--The rural utilities category shall 
        include funds made available for--
                    ``(A) water and waste disposal grants and direct 
                and guaranteed loans provided under paragraphs (1) and 
                (2) of section 306(a);
                    ``(B) rural water and wastewater technical 
                assistance and training grants provided under section 
                306(a)(16);
                    ``(C) emergency community water assistance grants 
                provided under section 306A; and
                    ``(D) solid waste management grants provided under 
                section 310B(b).
            ``(3) Rural business and cooperative development.--The 
        rural business and cooperative development category shall 
        include funds made available for--
                    ``(A) rural business opportunity grants provided 
                under section 306(a)(11)(A);
                    ``(B) business and industry guaranteed loans 
                provided under section 310B(a)(1); and
                    ``(C) rural business enterprise grants and rural 
                educational network grants provided under section 
                310B(c).
    ``(d) Other Programs.--Subject to subsection (e), in addition to 
any other appropriated amounts, the Secretary may transfer amounts 
allocated for a State for any of the 3 function categories for a fiscal 
year under subsection (c) to--
            ``(1) mutual and self-help housing grants provided under 
        section 523 of the Housing Act of 1949 (42 U.S.C. 1490c);
            ``(2) rural rental housing loans for existing housing 
        provided under section 515 of the Housing Act of 1949 (42 
        U.S.C. 1485);
            ``(3) rural cooperative development grants provided under 
        section 310B(e); and
            ``(4) grants to broadcasting systems provided under section 
        310B(f).
    ``(e) Transfer.--
            ``(1) In general.--Subject to paragraph (2), the Secretary 
        may transfer within each State up to 25 percent of the total 
        amount allocated for a State under each function category 
        referred to in subsection (c) for each fiscal year under this 
        section to any other function category, or to a program 
        referred to in subsection (d), but excluding State grants under 
        section 381G.
            ``(2) Limitation.--Not more than 10 percent of the total 
        amount (excluding grants to States under section 381G) made 
        available for any fiscal year for the programs covered by each 
        of the 3 function categories referred to in subsection (c), and 
        the programs referred to in subsection (d), shall be available 
        for the transfer.
    ``(f) Availability of Funds.--The Secretary may make available 
funds appropriated for the programs referred to in subsection (c) to 
defray the cost of any subsidy associated with a guarantee provided 
under section 381H, except that not more than 5 percent of the funds 
provided under subsection (c) may be made available within a State.

``SEC. 381F. ALLOCATION.

    ``(a) National Reserve.--The Secretary may use not more than 10 
percent of the total amount of funds made available for a fiscal year 
under section 381E to establish a national reserve for rural 
development that may be used by the Secretary in rural areas during the 
fiscal year to--
            ``(1) meet situations of exceptional need;
            ``(2) provide incentives to promote or reward superior 
        performance; or
            ``(3) carry out performance-oriented demonstration 
        projects.
    ``(b) Indian Tribes.--
            ``(1) Reservation.--The Secretary shall reserve not less 
        than 3 percent of the total amounts made available for a fiscal 
        year under section 381E to carry out rural development programs 
        specified in subsections (c) and (d) of section 381D for 
        federally recognized Indian tribes.
            ``(2) Allocation.--The Secretary shall establish a formula 
        for allocating the reserve and shall administer the reserve 
        through the appropriate Director of the Rural Economic and 
        Cooperative Development State office.
    ``(c) State Allocation.--
            ``(1) In general.--The Secretary shall allocate among all 
        the States the amounts made available under section 381E in a 
        fair, reasonable, and appropriate manner that takes into 
        consideration rural population, levels of income, unemployment, 
        and other relevant factors, as determined by the Secretary.
            ``(2) Minimum allocation.--In making the allocations for 
        each of fiscal years 1996 through 2002, the Secretary shall 
        ensure that the percentage allocation for each State is equal 
        to the percentage of the average of the total funds made 
        available to carry out the programs referred to in section 
        381E(c) that were obligated in the State for each of fiscal 
        years 1993 and 1994.

``SEC. 381G. GRANTS TO STATES.

    ``(a) In General.--Subject to subsection (c), the Secretary shall 
grant to any eligible State from which a request is received for a 
fiscal year 5 percent of the amount allocated for the State for the 
fiscal year under section 381F(c).
    ``(b) Eligibility.--To be eligible to receive a grant under this 
section, the Secretary shall require that the State maintain the grant 
funds received and any non-Federal matching funds to carry out this 
subtitle in a separate account, to remain available until expended.
    ``(c) Matching Funds.--For any fiscal year, if non-Federal matching 
funds are provided for a State in an amount that is equal to 200 
percent or more of an amount equal to 5 percent of the amount allocated 
for the State for the fiscal year under section 381F(c), the Secretary 
shall pay to the State the grant provided under this subsection in an 
amount equal to 5 percent of the amount allocated for the State for the 
fiscal year under section 381F(c).
    ``(d) Use of Funds.--The Secretary shall require that funds 
provided to a State under this section be used in rural areas to 
achieve the purposes of the programs referred to in section 381E(c) in 
accordance with the strategic plan referred to in section 381D.
    ``(e) Maintenance of Effort.--The State shall provide assurances 
that funds received under this section will be used only to supplement, 
not to supplant, the amount of Federal, State, and local funds 
otherwise expended for rural development assistance in the State.
    ``(f) Appeals.--The Secretary shall provide to a State an 
opportunity for an appeal of any action taken under this section.
    ``(g) Administrative Costs.--Federal funds shall not be used for 
any administrative costs incurred by a State in carrying out this 
subtitle.
    ``(h) Spending of Funds by State.--
            ``(1) In general.--Payments to a State from a grant under 
        this section for a fiscal year shall be obligated by the State 
        in the fiscal year or in the succeeding fiscal year. A State 
        shall obligate funds under this section to provide assistance 
        to rural areas pursuant, to the maximum extent practicable, to 
        applications received from the rural areas.
            ``(2) Failure to obligate.--If a State fails to obligate 
        payments in accordance with paragraph (1), the Secretary shall 
        make a corresponding reduction in the amount of payments 
        provided to the State under this section for the subsequent 
        fiscal year.
            ``(3) Noncompliance.--
                    ``(A) Review.--The Secretary shall review and 
                monitor State compliance with this section.
                    ``(B) Penalty.--If the Secretary finds that there 
                has been misuse of grant funds provided under this 
                section, or noncompliance with any of the terms and 
                conditions of a grant, after reasonable notice and 
                opportunity for a hearing--
                            ``(i) the Secretary shall notify the State 
                        of the finding; and
                            ``(ii) no further payments to the State 
                        shall be made with respect to the programs 
                        funded under this section until the Secretary 
                        is satisfied that there is no longer any 
                        failure to comply or that the noncompliance 
                        will be promptly corrected.
                    ``(C) Other sanctions.--In the case of a finding of 
                noncompliance made pursuant to subparagraph (B), the 
                Secretary may, in addition to, or in lieu of, imposing 
                the sanctions described in subparagraph (B), impose 
                other appropriate sanctions, including recoupment of 
                money improperly expended for purposes prohibited or 
                not authorized by this section and disqualification 
                from the receipt of financial assistance under this 
                section.
    ``(i) No Entitlement to Contract, Grant, or Assistance.--Nothing in 
this subtitle--
            ``(1) entitles any person to assistance or a contract or 
        grant; or
            ``(2) limits the right of a State to impose additional 
        limitations or conditions on assistance or a contract or grant 
        under this section.

``SEC. 381H. GUARANTEE AND COMMITMENT TO GUARANTEE LOANS.

    ``(a) Definition of Eligible Public Entity.--In this section, the 
term `eligible public entity' means any unit of general local 
government.
    ``(b) Guarantee and Commitment.--The Secretary is authorized, on 
such terms and conditions as the Secretary may prescribe, to guarantee 
and make commitments to guarantee the notes or other obligations issued 
by eligible public entities, or by public agencies designated by the 
eligible public entities, for the purposes of financing rural 
development assistance activities authorized and funded under section 
381G.
    ``(c) Prerequisites.--No guarantee or commitment to guarantee shall 
be made with respect to any note or other obligation if the issuer's 
total outstanding notes or obligations guaranteed under this section 
(excluding any amount repaid under the contract entered into under 
subsection (e)(1)(A)) would exceed an amount equal to 5 times the 
amount of the grant approval for the issuer pursuant to section 381G.
    ``(d) Payment of Principal, Interest, and Costs.--Notwithstanding 
any other provision of this subtitle, grants allocated to an issuer 
pursuant to this subtitle (including program income derived from the 
grants) shall be authorized for use in the payment of principal and 
interest due (including such servicing, underwriting, or other costs as 
may be specified in regulations of the Secretary) on the notes or other 
obligations guaranteed pursuant to this section.
    ``(e) Repayment Contract; Security.--
            ``(1) In general.--To ensure the repayment of notes or 
        other obligations and charges incurred under this section and 
        as a condition for receiving the guarantees, the Secretary 
        shall require the issuer to--
                    ``(A) enter into a contract, in a form acceptable 
                to the Secretary, for repayment of notes or other 
                obligations guaranteed under this section;
                    ``(B) pledge any grant for which the issuer may 
                become eligible under this subtitle; and
                    ``(C) furnish, at the discretion of the Secretary, 
                such other security as may be considered appropriate by 
                the Secretary in making the guarantees.
            ``(2) Security.--To assist in ensuring the repayment of 
        notes or other obligations and charges incurred under this 
        section, a State shall pledge any grant for which the State may 
        become eligible under this subtitle as security for notes or 
        other obligations and charges issued under this section by any 
        unit of general local government in the State.
    ``(f) Pledged Grants for Repayments.--Notwithstanding any other 
provision of this subtitle, the Secretary is authorized to apply grants 
pledged pursuant to paragraphs (1)(B) and (2) of subsection (e) to any 
repayments due the United States as a result of the guarantees.
    ``(g) Outstanding Obligations.--The total amount of outstanding 
obligations guaranteed on a cumulative basis by the Secretary pursuant 
to subsection (b) shall not at any time exceed such amount as may be 
authorized to be appropriated for any fiscal year.
    ``(h) Purchase of Guaranteed Obligations by Federal Financing 
Bank.--Notes or other obligations guaranteed under this section may not 
be purchased by the Federal Financing Bank.
    ``(i) Full Faith and Credit.--The full faith and credit of the 
United States is pledged to the payment of all guarantees made under 
this section. Any such guarantee made by the Secretary shall be 
conclusive evidence of the eligibility of the obligations for the 
guarantee with respect to principal and interest. The validity of the 
guarantee shall be incontestable in the hands of a holder of the 
guaranteed obligations.

``SEC. 381I. LOCAL INVOLVEMENT.

    ``The Secretary shall require that an applicant for assistance 
under this subtitle demonstrate evidence of significant community 
support.

``SEC. 381J. STATE-TO-STATE COLLABORATION.

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

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

    ``(a) In General.--The Secretary shall designate up to 10 community 
development venture capital organizations to demonstrate the utility of 
guarantees to attract increased private investment in rural private 
business enterprises.
    ``(b) Rural Business Investment Pool.--
            ``(1) Establishment.--To be eligible to participate in the 
        demonstration program, an organization referred to in 
        subsection (a) shall establish a rural business private 
        investment pool (referred to in this subsection as a `pool') 
        for the purpose of making equity investments in rural private 
        business enterprises.
            ``(2) Guarantee.--From funds allocated for the national 
        reserve under section 381F(a), the Secretary shall guarantee 
        the funds in a pool against loss, except that the guarantee 
        shall not exceed an amount equal to 30 percent of the total 
        funds in the pool.
            ``(3) Amount.--The Secretary shall issue guarantees 
        covering not more than $15,000,000 of obligations for each of 
        fiscal years 1996 through 2002.
            ``(4) Term.--The term of a guarantee provided under this 
        subsection shall not exceed 10 years.
            ``(5) Submission of plan.--To be eligible to participate in 
        the demonstration program, an organization referred to in 
        subsection (a) shall submit a plan that describes--
                    ``(A) potential sources and uses of the pool to be 
                established by the organization;
                    ``(B) the utility of the guarantee authority in 
                attracting capital for the pool; and
                    ``(C) on selection, mechanisms for notifying State, 
                local, and private nonprofit business development 
                organizations and businesses of the existence of the 
                pool.
            ``(6) Competition.--
                    ``(A) In general.--The Secretary shall conduct a 
                competition for the designation and establishment of 
                pools.
                    ``(B) Priority.--In conducting the competition, the 
                Secretary shall give priority to organizations that--
                            ``(i) have a demonstrated record of 
                        performance or have a board and executive 
                        director with experience in venture capital, 
                        small business equity investments, or community 
                        development finance;
                            ``(ii) propose to serve low-income 
                        communities;
                            ``(iii) propose to maintain an average 
                        investment of not more than $500,000 from the 
                        pool of the organization;
                            ``(iv) invest funds statewide or in a 
                        multicounty region; and
                            ``(v) propose to target job opportunities 
                        resulting from the investments primarily to 
                        economically disadvantaged individuals.
                    ``(C) Geographic diversity.--To the extent 
                practicable, the Secretary shall select organizations 
                in diverse geographic areas.

``SEC. 381L. ANNUAL REPORT.

    ``(a) In General.--The Secretary, in collaboration with public, 
State, local, and private entities, State rural development councils, 
and community-based organizations, shall prepare an annual report that 
contains evaluations, assessments, and performance outcomes concerning 
the rural community advancement programs carried out under this 
subtitle.
    ``(b) Submission.--Not later than March 1 of each year, the 
Secretary shall--
            ``(1) submit the report required under subsection (a) to 
        Congress and the chief executives of States participating in 
        the program established under this subtitle; and
            ``(2) make the report available to State and local 
        participants.

``SEC. 381M. RURAL DEVELOPMENT INTERAGENCY WORKING GROUP.

    ``(a) In General.--The Secretary shall provide leadership within 
the Executive branch for, and assume responsibility for, establishing 
an interagency working group chaired by the Secretary.
    ``(b) Duties.--The working group shall establish policy, provide 
coordination, make recommendations, and evaluate the performance of or 
for all Federal rural development efforts.

``SEC. 381N. DUTIES OF RURAL ECONOMIC AND COMMUNITY DEVELOPMENT STATE 
              OFFICES.

    ``In carrying out this subtitle, the Director of a Rural Economic 
and Community Development State Office shall--
            ``(1) to the maximum extent practicable, ensure that the 
        State strategic plan is implemented;
            ``(2) coordinate community development objectives within 
        the State;
            ``(3) establish links between local, State, and field 
        office program administrators of the Department of Agriculture;
            ``(4) ensure that recipient communities comply with 
        applicable Federal and State laws and requirements; and
            ``(5) integrate State development programs with assistance 
        under this subtitle.

``SEC. 381O. ELECTRONIC TRANSFER.

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

SEC. 762. COMMUNITY FACILITIES GRANT PROGRAM.

    Section 306(a) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1926(a)) is amended by adding at the end the following:
            ``(21) Community facilities grant program.--
                    ``(A) In general.--The Secretary may make grants, 
                in a total amount not to exceed $10,000,000 for any 
                fiscal year, to associations, units of general local 
                government, nonprofit corporations, and federally 
                recognized Indian tribes to provide the Federal share 
                of the cost of developing specific essential community 
                facilities in rural areas.
                    ``(B) Federal share.--
                            ``(i) In general.--Except as provided in 
                        clauses (ii) and (iii), the Secretary shall, by 
                        regulation, establish the amount of the Federal 
                        share of the cost of the facility under this 
                        paragraph.
                            ``(ii) Maximum amount.--The amount of a 
                        grant provided under this paragraph shall not 
                        exceed 75 percent of the cost of developing a 
                        facility.
                            ``(iii) Graduated scale.--The Secretary 
                        shall provide for a graduated scale for the 
                        amount of the Federal share provided under this 
                        paragraph, with higher Federal shares for 
                        facilities in communities that have lower 
                        community population and income levels, as 
                        determined by the Secretary.''.

    Subtitle C--Amendments to the Rural Electrification Act of 1936

SEC. 771. PURPOSES; INVESTIGATIONS AND REPORTS.

    Section 2 of the Rural Electrification Act of 1936 (7 U.S.C. 902) 
is amended--
            (1) by striking ``Sec. 2. (a) The Secretary of Agriculture 
        is'' and inserting the following:

``SEC. 2. GENERAL AUTHORITY OF THE SECRETARY OF AGRICULTURE.

    ``(a) Loans.--The Secretary of Agriculture (referred to in this Act 
as the `Secretary') is'';
            (2) in subsection (a)--
                    (A) by striking ``and the furnishing'' the first 
                place it appears and all that follows through ``central 
                station service''; and
                    (B) by striking ``systems; to make'' and all that 
                follows through the period at the end of the subsection 
                and inserting ``systems''; and
            (3) by striking subsection (b) and inserting the following:
    ``(b) Investigations and Reports.--The Secretary may make, or cause 
to be made, studies, investigations, and reports regarding matters, 
including financial, technological, and regulatory matters, affecting 
the condition and progress of electric, telecommunications, and 
economic development in rural areas and publish and disseminate 
information with respect to the matters.''.

SEC. 772. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--Section 3 of the Rural Electrification Act of 1936 
(7 U.S.C. 903) is amended to read as follows:

``SEC. 3. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated such sums as are 
necessary to carry out this Act.''.
    (b) Conforming Amendments.--
            (1) Section 301(a) of the Rural Electrification Act of 1936 
        (7 U.S.C. 931(a)) is amended--
                    (A) by striking ``(a)''; and
                    (B) in paragraph (3), by striking ``notwithstanding 
                section 3(a) of title I,''.
            (2) Section 302(b)(2) of the Rural Electrification Act of 
        1936 (7 U.S.C. 932(b)(2)) is amended by striking ``pursuant to 
        section 3(a) of this Act''.
            (3) The last sentence of section 406(a) of the Rural 
        Electrification Act of 1936 (7 U.S.C. 946(a)) is amended by 
        striking ``pursuant to section 3(a) of this Act''.

SEC. 773. LOANS FOR ELECTRICAL PLANTS AND TRANSMISSION LINES.

    Section 4 of the Rural Electrification Act of 1936 (7 U.S.C. 904) 
is amended--
            (1) in the first sentence--
                    (A) by striking ``for the furnishing of'' and all 
                that follows through ``central station service and''; 
                and
                    (B) by striking ``the provisions of sections 3(d) 
                and 3(e) but without regard to the 25 per centum 
                limitation therein contained,'' and inserting ``section 
                3,'';
            (2) in the second sentence, by striking ``: Provided 
        further, That all'' and all that follows through ``loan: And 
        provided further, That'' and inserting ``, except that''; and
            (3) in the third sentence, by striking ``and section 5''.

SEC. 774. LOANS FOR ELECTRICAL AND PLUMBING EQUIPMENT.

    (a) In General.--Section 5 of the Rural Electrification Act of 1936 
(7 U.S.C. 905) is repealed.
    (b) Conforming Amendments.--Section 12(a) of the Rural 
Electrification Act of 1936 (7 U.S.C. 912(a)) is amended--
            (1) by striking ``: Provided, however, That'' and inserting 
        ``, except that,''; and
            (2) by striking ``, and with respect to any loan made under 
        section 5,'' and all that follows through ``section 3''.

SEC. 775. TESTIMONY ON BUDGET REQUESTS.

    Section 6 of the Rural Electrification Act of 1936 (7 U.S.C. 906) 
is amended by striking the second sentence.

SEC. 776. TRANSFER OF FUNCTIONS OF ADMINISTRATION CREATED BY EXECUTIVE 
              ORDER.

    Section 8 of the Rural Electrification Act of 1936 (7 U.S.C. 908) 
is repealed.

SEC. 777. ANNUAL REPORT.

    Section 10 of the Rural Electrification Act of 1936 (7 U.S.C. 910) 
is repealed.

SEC. 778. PROHIBITION ON RESTRICTING WATER AND WASTE FACILITY SERVICES 
              TO ELECTRIC CUSTOMERS.

    The Rural Electrification Act of 1936 is amended by inserting after 
section 16 (7 U.S.C. 916) the following:

``SEC. 17. PROHIBITION ON RESTRICTING WATER AND WASTE FACILITY SERVICES 
              TO ELECTRIC CUSTOMERS.

    ``The Secretary shall establish rules and procedures that prohibit 
borrowers under title III or under the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1921 et seq.) from conditioning or limiting 
access to, or the use of, water and waste facility services financed 
under the Consolidated Farm and Rural Development Act if the 
conditioning or limiting is based on whether individuals or entities in 
the area served or proposed to be served by the facility receive, or 
will accept, electric service from the borrower.''.

SEC. 779. TELEPHONE LOAN TERMS AND CONDITIONS.

    Section 309 of the Rural Electrification Act of 1936 (7 U.S.C. 939) 
is amended--
            (1) in subsection (a), by striking ``(a) In General.--''; 
        and
            (2) by striking subsection (b).

SEC. 780. PRIVATIZATION PROGRAM.

    Section 311 of the Rural Electrification Act of 1936 (7 U.S.C. 
940a) is repealed.

SEC. 781. RURAL BUSINESS INCUBATOR FUND.

    (a) In General.--Section 502 of the Rural Electrification Act of 
1936 (7 U.S.C. 950aa-1) is repealed.
    (b) Conforming Amendments.--Section 501 of the Rural 
Electrification Act of 1936 (7 U.S.C. 950aa) is amended--
            (1) in paragraph (5), by inserting ``and'' at the end;
            (2) in paragraph (6), by striking ``; and'' at the end and 
        inserting a period; and
            (3) by striking paragraph (7).

         Subtitle D--Miscellaneous Rural Development Provisions

SEC. 791. INTEREST RATE FORMULA.

    (a) Bankhead-Jones Farm Tenant Act.--Section 32(e) of the Bankhead-
Jones Farm Tenant Act (7 U.S.C. 1011) is amended by striking the fifth 
sentence and inserting the following: ``A loan under this subsection 
shall be made under a contract that provides, under such terms and 
conditions as the Secretary considers appropriate, for the repayment of 
the loan in not more than 30 years, with interest at a rate not to 
exceed the current market yield for outstanding municipal obligations 
with remaining periods to maturity comparable to the average maturity 
for the loan, adjusted to the nearest \1/8\ of 1 percent.''.
    (b) Watershed Protection and Flood Prevention Act.--Section 8 of 
the Watershed Protection and Flood Prevention Act (16 U.S.C. 1006a) is 
amended by striking the second sentence and inserting the following: 
``A loan or advance under this section shall be made under a contract 
or agreement that provides, under such terms and conditions as the 
Secretary considers appropriate, for the repayment of the loan or 
advance in not more than 50 years from the date when the principal 
benefits of the works of improvement first become available, with 
interest at a rate not to exceed the current market yield for 
outstanding municipal obligations with remaining periods to maturity 
comparable to the average maturity for the loan, adjusted to the 
nearest \1/8\ of 1 percent.''.

SEC. 792. GRANTS FOR FINANCIALLY STRESSED FARMERS, DISLOCATED FARMERS, 
              AND RURAL FAMILIES.

    (a) In General.--Section 502 of the Rural Development Act of 1972 
(7 U.S.C. 2662) is amended by striking subsection (f).
    (b) Conforming Amendments.--
            (1) Section 2389 of the Food, Agriculture, Conservation, 
        and Trade Act of 1990 (Public Law 101-624; 7 U.S.C. 2662 note) 
        is amended by striking subsection (d).
            (2) Section 503(c) of the Rural Development Act of 1972 (7 
        U.S.C. 2663(c)) is amended--
                    (A) in paragraph (1)--
                            (i) by striking ``(1)'';
                            (ii) by striking ``section 502(e)'' and all 
                        that follows through ``shall be distributed'' 
                        and inserting ``subsections (e), (h), and (i) 
                        of section 502 shall be distributed''; and
                            (iii) by striking ``objectives of'' and all 
                        that follows through ``title'' and inserting 
                        ``objectives of subsections (e), (h), and (i) 
                        of section 502''; and
                    (B) by striking paragraph (2).

SEC. 793. COOPERATIVE AGREEMENTS.

    (a) Section 607(b) of the Rural Development Act of 1972 (7 U.S.C. 
2204b(b)) is amended by striking paragraph (4) and inserting the 
following:
            ``(4) Cooperative agreements.--
                    ``(A) In general.--Notwithstanding chapter 63 of 
                title 31, United States Code, the Secretary may enter 
                into cooperative agreements with other Federal 
                agencies, State and local governments, and any other 
                organization or individual to improve the coordination 
                and effectiveness of Federal programs, services, and 
                actions affecting rural areas, including the 
                establishment and financing of interagency groups, if 
                the Secretary determines that the objectives of the 
                agreement will serve the mutual interest of the parties 
                in rural development activities.
                    ``(B) Cooperators.--Each cooperator, including each 
                Federal agency, to the extent that funds are otherwise 
                available, may participate in any cooperative agreement 
                or working group established pursuant to this paragraph 
                by contributing funds or other resources to the 
                Secretary to carry out the agreement or functions of 
                the group.''.
    (b) Notwithstanding any other provision of law, section 343(a) of 
the Consolidated Farm and Rural Development Act (7 U.S.C. 1991(a)) is 
amended in subparagraph (F)--
                            (i) by striking ``exceed 15 percent'' and 
                        all that follows through ``Code'' and inserting 
                        the following: ``exceed--
                            ``(i) 25 percent of the median acreage of 
                        the farms or ranches, as the case may be, in 
                        the county in which the farm or ranch 
                        operations of the applicant are located, as 
                        reported in the most recent census of 
                        agriculture taken under section 142 of title 
                        13, United States Code.''.

              TITLE VIII--RESEARCH EXTENSION AND EDUCATION

 Subtitle A--Amendments to National Agricultural Research, Extension, 
          and Teaching Policy Act of 1977 and Related Statutes

SEC. 801. PURPOSES OF AGRICULTURAL RESEARCH, EXTENSION, AND EDUCATION.

    Section 1402 of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3101) is amended to read as 
follows:

``SEC. 1402. PURPOSES OF AGRICULTURAL RESEARCH, EXTENSION, AND 
              EDUCATION.

    ``The purposes of federally supported agricultural research, 
extension, and education are to--
            ``(1) enhance the competitiveness of the United States 
        agriculture and food industry in an increasingly competitive 
        world environment;
            ``(2) increase the long-term productivity of the United 
        States agriculture and food industry while protecting the 
        natural resource base on which rural America and the United 
        States agricultural economy depend;
            ``(3) develop new uses and new products for agricultural 
        commodities, such as alternative fuels, and develop new crops;
            ``(4) support agricultural research and extension to 
        promote economic opportunity in rural communities and to meet 
        the increasing demand for information and technology transfer 
        throughout the United States agriculture industry;
            ``(5) improve risk management in the United States 
        agriculture industry;
            ``(6) improve the safe production and processing of, and 
        adding of value to, United States food and fiber resources 
        using methods that are environmentally sound;
            ``(7) support higher education in agriculture to give the 
        next generation of Americans the knowledge, technology, and 
        applications necessary to enhance the competitiveness of United 
        States agriculture; and
            ``(8) maintain an adequate, nutritious, and safe supply of 
        food to meet human nutritional needs and requirements.''.

SEC. 802. SUBCOMMITTEE ON FOOD, AGRICULTURAL, AND FORESTRY RESEARCH.

    Section 401(h) of the National Science and Technology Policy, 
Organization, and Priorities Act of 1976 (42 U.S.C. 6651(h)) is amended 
by striking the second through fifth sentences.

SEC. 803. JOINT COUNCIL ON FOOD AND AGRICULTURAL SCIENCES.

    (a) In General.--Section 1407 of the National Agricultural 
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3122) is 
repealed.
    (b) Conforming Amendments.--
            (1) Section 1404 of the National Agricultural Research, 
        Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103) is 
        amended--
                    (A) by striking paragraph (9); and
                    (B) by redesignating paragraphs (10) through (18) 
                as paragraphs (9) through (17), respectively.
            (2) Section 1405 of the National Agricultural Research, 
        Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3121) is 
        amended--
                    (A) in paragraph (5), by striking ``Joint Council, 
                Advisory Board,'' and inserting ``Advisory Board''; and
                    (B) in paragraph (11), by striking ``the Joint 
                Council,''.
            (3) Section 1410(2) of the National Agricultural Research, 
        Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3125(2)) 
        is amended by striking ``the recommendations of the Joint 
        Council developed under section 1407(f),''.
            (4) Section 1412 of the National Agricultural Research, 
        Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3127) is 
        amended--
                    (A) in the section heading, by striking ``joint 
                council, advisory board,'' and inserting ``advisory 
                board'';
                    (B) in subsection (a)--
                            (i) by striking ``Joint Council, the 
                        Advisory Board,'' and inserting ``Advisory 
                        Board'';
                            (ii) by striking ``the cochairpersons of 
                        the Joint Council and'' each place it appears; 
                        and
                            (iii) in paragraph (2), by striking ``one 
                        shall serve as the executive secretary to the 
                        Joint Council, one shall serve as the executive 
                        secretary to the Advisory Board,'' and 
                        inserting ``1 shall serve as the executive 
                        secretary to the Advisory Board''; and
                    (C) in subsections (b) and (c), by striking ``Joint 
                Council, Advisory Board,'' each place it appears and 
                inserting ``Advisory Board''.
            (5) Section 1413 of the National Agricultural Research, 
        Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3128) is 
        amended--
                    (A) in subsection (a), by striking ``Joint Council, 
                the Advisory Board,'' and inserting ``Advisory Board'';
                    (B) in subsection (b), by striking ``Joint Council, 
                Advisory Board,'' and inserting ``Advisory Board''; and
                    (C) by striking subsection (d).
            (6) Section 1434(c) of the National Agricultural Research, 
        Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3196(c)) 
        is amended--
                    (A) in the second sentence, by striking ``Joint 
                Council, the Advisory Board,'' and inserting ``Advisory 
                Board''; and
                    (B) in the fourth sentence, by striking ``the Joint 
                Council,''.

SEC. 804. NATIONAL AGRICULTURAL RESEARCH, EXTENSION, EDUCATION, AND 
              ECONOMICS ADVISORY BOARD.

    (a) In General.--Section 1408 of the National Agricultural 
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3123) is 
amended to read as follows:

``SEC. 1408. NATIONAL AGRICULTURAL RESEARCH, EXTENSION, EDUCATION, AND 
              ECONOMICS ADVISORY BOARD.

    ``(a) Establishment.--The Secretary shall establish within the 
Department of Agriculture a board to be known as the `National 
Agricultural Research, Extension, Education, and Economics Advisory 
Board'.
    ``(b) Membership.--
            ``(1) In general.--The Advisory Board shall consist of 25 
        members, appointed by the Secretary.
            ``(2) Selection of members.--The Secretary shall appoint 
        members to the Advisory Board from individuals who are selected 
        from national farm, commodity, agribusiness, environmental, 
        consumer, and other organizations directly concerned with 
        agricultural research, education, and extension programs.
            ``(3) Representation.--A member of the Advisory Board may 
        represent 1 or more of the organizations referred to in 
        paragraph (2), except that 1 member shall be a representative 
        of the scientific community that is not closely associated with 
        agriculture. The Secretary shall ensure that the membership of 
        the Advisory Board includes full-time farmers and ranchers and 
        represents the interests of the full variety of stakeholders in 
        the agricultural sector.
    ``(c) Duties.--The Advisory Board shall--
            ``(1) review and provide consultation to the Secretary and 
        land-grant colleges and universities on long-term and short-
        term national policies and priorities, as set forth in section 
        1402, relating to agricultural research, extension, education, 
        and economics;
            ``(2) evaluate the results and effectiveness of 
        agricultural research, extension, education, and economics with 
        respect to the policies and priorities;
            ``(3) review and make recommendations to the Under 
        Secretary of Agriculture for Research, Education, and Economics 
        on the research, extension, education, and economics portion of 
        the draft strategic plan required under section 306 of title 5, 
        United States Code; and
            ``(4) review the mechanisms of the Department of 
        Agriculture for technology assessment (which should be 
        conducted by qualified professionals) for the purposes of--
                    ``(A) performance measurement and evaluation of the 
                implementation by the Secretary of the strategic plan 
                required under section 306 of title 5, United States 
                Code;
                    ``(B) implementation of the national research 
                policies and priorities set forth in section 1402; and
                    ``(C) the development of mechanisms for the 
                assessment of emerging public and private agricultural 
                research and technology transfer initiatives.
    ``(d) Consultation.--In carrying out this section, the Advisory 
Board shall solicit opinions and recommendations from persons who will 
benefit from and use federally funded agricultural research, extension, 
education, and economics.
    ``(e) Appointment.--A member of the Advisory Board shall be 
appointed by the Secretary for a term of up to 3 years. The members of 
the Advisory Board shall be appointed to serve staggered terms.
    ``(f) Federal Advisory Committee Act.--The Advisory Board shall be 
deemed to have filed a charter for the purpose of section 9(c) of the 
Federal Advisory Committee Act (5 U.S.C. App.).
    ``(g) Termination.--The Advisory Board shall remain in existence 
until September 30, 2002.''.
    (b) Conforming Amendments.--
            (1) Section 1404(1) of the National Agricultural Research, 
        Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103(1)) 
        is amended by striking ``National Agricultural Research and 
        Extension Users Advisory Board'' and inserting ``National 
        Agricultural Research, Extension, Education, and Economics 
        Advisory Board''.
            (2) Section 1410(2) of the National Agricultural Research, 
        Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3125(2)) 
        is amended by striking ``the recommendations of the Advisory 
        Board developed under section 1408(g),'' and inserting ``any 
        recommendations of the Advisory Board''.
            (3) The last sentence of section 4(a) of the Renewable 
        Resources Extension Act of 1978 (16 U.S.C. 1673(a)) is amended 
        by striking ``National Agricultural Research and Extension 
        Users Advisory Board'' and inserting ``National Agricultural 
        Research, Extension, Education, and Economics Advisory Board''.

SEC. 805. AGRICULTURAL SCIENCE AND TECHNOLOGY REVIEW BOARD.

    (a) In General.--Section 1408A of the National Agricultural 
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3123a) 
is repealed.
    (b) Conforming Amendments.--
            (1) Section 1404 of the National Agricultural Research, 
        Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103) (as 
        amended by section 803(b)(1)(B)) is further amended--
                    (A) in paragraph (15), by adding ``and'' at the 
                end;
                    (B) in paragraph (16), by striking ``; and'' and 
                inserting a period; and
                    (C) by striking paragraph (17).
            (2) Section 1405(12) of the National Agricultural Research, 
        Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3121(12)) 
        is amended by striking ``, after coordination with the 
        Technology Board,''.
            (3) Section 1410(2) of the National Agricultural Research, 
        Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3125(2)) 
        (as amended by section 804(b)(2)) is further amended by 
        striking ``and the recommendations of the Technology Board 
        developed under section 1408A(d)''.
            (4) Section 1412 of the National Agricultural Research, 
        Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3127) (as 
        amended by section 803(b)(4)) is further amended--
                    (A) in the section heading, by striking ``and 
                technology board'';
                    (B) in subsection (a)--
                            (i) by striking ``and the Technology 
                        Board'' each place it appears; and
                            (ii) in paragraph (2), by striking ``and 
                        one shall serve as the executive secretary to 
                        the Technology Board''; and
                    (C) in subsections (b) and (c), by striking ``and 
                Technology Board'' each place it appears.
            (5) Section 1413 of the National Agricultural Research, 
        Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3128) (as 
        amended by section 803(b)(5)) is further amended--
                    (A) in subsection (a), by striking ``or the 
                Technology Board''; and
                    (B) in subsection (b), by striking ``and the 
                Technology Board''.

SEC. 806. FEDERAL ADVISORY COMMITTEE ACT EXEMPTION FOR FEDERAL-STATE 
              COOPERATIVE PROGRAMS.

    Section 1409A of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3124a) is amended by adding at 
the end the following:
    ``(e) Applicability of Federal Advisory Committee Act.--
            ``(1) Public meetings.--All meetings of any entity 
        described in paragraph (2) shall be publicly announced in 
        advance and shall be open to the public. Detailed minutes of 
        meetings and other appropriate records of the activities of 
        such an entity shall be kept and made available to the public 
        on request.
            ``(2) Exemption.--The Federal Advisory Committee Act (5 
        U.S.C. App.) and title XVIII of the Food and Agriculture Act of 
        1977 (7 U.S.C. 2281 et seq.) shall not apply to any committee, 
        board, commission, panel, or task force, or similar entity 
        that--
                    ``(A) is created for the purpose of cooperative 
                efforts in agricultural research, extension, or 
                teaching; and
                    ``(B) consists entirely of full-time Federal 
                employees and individuals who are employed by, or who 
                are officials of, a State cooperative institution or a 
                State cooperative agent.''.

SEC. 807. COORDINATION AND PLANNING OF AGRICULTURAL RESEARCH, 
              EXTENSION, AND EDUCATION.

    Subtitle B of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3121 et seq.) is amended by 
adding at the end the following:

``SEC. 1413A. ACCOUNTABILITY.

    ``(a) In General.--The Secretary shall develop and carry out a 
system to monitor and evaluate agricultural research and extension 
activities conducted or supported by the Federal Government that will 
enable the Secretary to measure the impact of research, extension, and 
education programs according to priorities, goals, and mandates 
established by law.
    ``(b) Consistency With Other Requirements.--The system shall be 
developed and carried out in a manner that is consistent with the 
Government Performance and Results Act of 1993 (Public Law 103-62; 107 
Stat. 285) and amendments made by the Act.

``SEC. 1413B. IMMINENT OR EMERGING THREATS TO FOOD SAFETY AND ANIMAL 
              AND PLANT HEALTH.

    ``In the case of any activities of an agency of the Department of 
Agriculture that relate to food safety, animal or plant health, 
research, education, or technology transfer, the Secretary may transfer 
up to 5 percent of any amounts made available to the agency for a 
fiscal year to an agency of the Department of Agriculture reporting to 
the Under Secretary of Agriculture for Research, Education, and 
Economics for the purpose of addressing imminent or emerging threats to 
food safety and animal and plant health.

``SEC. 1413C. FEDERAL ADVISORY COMMITTEE ACT EXEMPTION FOR COMPETITIVE 
              RESEARCH, EXTENSION, AND EDUCATION PROGRAMS.

    ``The Federal Advisory Committee Act (5 U.S.C. App.) and title 
XVIII of the Food and Agriculture Act of 1977 (7 U.S.C. 2281 et seq.) 
shall not apply to any committee, board, commission, panel, or task 
force, or similar entity, created solely for the purpose of reviewing 
applications or proposals requesting funding under any competitive 
research, extension, or education program carried out by the 
Secretary.''.

SEC. 808. GRANTS AND FELLOWSHIPS FOR FOOD AND AGRICULTURAL SCIENCES 
              EDUCATION.

    (a) In General.--Section 1417 of the National Agricultural 
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3152) is 
amended--
            (1) in subsection (b)--
                    (A) by inserting before ``for a period'' the 
                following: ``or to research foundations maintained by 
                the colleges and universities,''; and
                    (B) by striking paragraph (4) and inserting the 
                following:
            ``(4) to design and implement food and agricultural 
        programs to build teaching and research capacity at primarily 
        minority institutions;'';
            (2) by redesignating subsections (h) and (i) as subsections 
        (i) and (j), respectively;
            (3) by inserting after subsection (g) the following:
    ``(h) Secondary Education and 2-year Postsecondary Education 
Teaching Programs.--
            ``(1) Agriscience and agribusiness education.--The 
        Secretary shall--
                    ``(A) promote and strengthen secondary education 
                and 2-year postsecondary education in agriscience and 
                agribusiness in order to help ensure the existence in 
                the United States of a qualified workforce to serve the 
                food and agricultural sciences system; and
                    ``(B) promote complementary and synergistic 
                linkages among secondary, 2-year postsecondary, and 
                higher education programs in the food and agricultural 
                sciences in order to promote excellence in education 
                and encourage more young Americans to pursue and 
                complete a baccalaureate or higher degree in the food 
                and agricultural sciences.
            ``(2) Grants.--The Secretary may make competitive or 
        noncompetitive grants, for grant periods not to exceed 5 years, 
        to public secondary education institutions, 2-year community 
        colleges, and junior colleges that have made a commitment to 
        teaching agriscience and agribusiness--
                    ``(A) to enhance curricula in agricultural 
                education;
                    ``(B) to increase faculty teaching competencies;
                    ``(C) to interest young people in pursuing a higher 
                education in order to prepare for scientific and 
                professional careers in the food and agricultural 
                sciences;
                    ``(D) to promote the incorporation of agriscience 
                and agribusiness subject matter into other 
                instructional programs, particularly classes in 
                science, business, and consumer education;
                    ``(E) to facilitate joint initiatives among other 
                secondary or 2-year postsecondary institutions and with 
                4-year colleges and universities to maximize the 
                development and use of resources such as faculty, 
                facilities, and equipment to improve agriscience and 
                agribusiness education; and
                    ``(F) to support other initiatives designed to meet 
                local, State, regional, or national needs related to 
                promoting excellence in agriscience and agribusiness 
                education.''; and
            (4) in subsection (j) (as so redesignated), by striking 
        ``1995'' and inserting ``2002''.
    (b) Transfer of Functions and Duties Pertaining to the Future 
Farmers of America.--
            (1) In general.--There are transferred to the Secretary of 
        Agriculture all the functions and duties of the Secretary of 
        Education under the Act entitled ``An Act to incorporate the 
        Future Farmers of America, and for other purposes'', approved 
        August 30, 1950 (36 U.S.C. 271 et seq.).
            (2) Personnel and unexpended balances.--There are 
        transferred to the Department of Agriculture all personnel and 
        balances of unexpended appropriations available for carrying 
        out the duties and functions transferred under paragraph (1).
            (3) Amendments.--The Act entitled ``An Act to incorporate 
        the Future Farmers of America, and for other purposes'', 
        approved August 30, 1950, is amended--
                    (A) in section 7(c) (36 U.S.C. 277(c)) by striking 
                ``Secretary of Education, the executive secretary shall 
                be a member of the Department of Education'' and 
                inserting ``Secretary of Agriculture, the executive 
                secretary shall be an officer or employee of the 
                Department of Agriculture'';
                    (B) in section 8(a) (36 U.S.C. 278(a))--
                            (i) by striking ``Secretary of Education'' 
                        and inserting ``Secretary of Agriculture''; and
                            (ii) by striking ``Department of 
                        Education'' and inserting ``Department of 
                        Agriculture''; and
                    (C) in section 18 (36 U.S.C. 288)--
                            (i) by striking ``Secretary of Education'' 
                        each place it appears and inserting ``Secretary 
                        of Agriculture''; and
                            (ii) by striking ``Department of 
                        Education'' each place it appears and inserting 
                        ``Department of Agriculture''.

SEC. 809. GRANTS FOR RESEARCH ON THE PRODUCTION AND MARKETING OF 
              ALCOHOLS AND INDUSTRIAL HYDROCARBONS FROM AGRICULTURAL 
              COMMODITIES AND FOREST PRODUCTS.

    Section 1419(d) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3154(d)) is amended by 
striking ``1995'' and inserting ``2002''.

SEC. 810. POLICY RESEARCH CENTERS.

    The National Agricultural Research, Extension, and Teaching Policy 
Act of 1977 (as amended by section 809) is further amended by inserting 
after section 1418 (7 U.S.C. 3153) the following:

``SEC. 1419. POLICY RESEARCH CENTERS.

    ``(a) In General.--Consistent with this section, the Secretary may 
make grants, competitive grants, and special research grants to, and 
enter into cooperative agreements and other contracting instruments 
with, policy research centers to conduct research and education 
programs that are objective, operationally independent, and external to 
the Federal Government and that concern the effect of public policies 
on--
            ``(1) the farm and agricultural sectors;
            ``(2) the environment;
            ``(3) rural families, households and economies; and
            ``(4) consumers, food, and nutrition.
    ``(b) Eligible Recipients.--Except to the extent otherwise 
prohibited by law, State agricultural experiment stations, colleges and 
universities, other research institutions and organizations, private 
organizations, corporations, and individuals shall be eligible to apply 
for and receive funding under subsection (a).
    ``(c) Activities.--Under this section, funding may be provided for 
disciplinary and interdisciplinary research and education concerning 
activities consistent with this section, including activities that--
            ``(1) quantify the implications of public policies and 
        regulations;
            ``(2) develop theoretical and research methods;
            ``(3) collect and analyze data for policymakers, analysts, 
        and individuals; and
            ``(4) develop programs to train analysts.
    ``(d) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section for 
fiscal years 1996 through 2002.''.

SEC. 811. HUMAN NUTRITION INTERVENTION AND HEALTH PROMOTION RESEARCH 
              PROGRAM.

    Section 1424 of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3174) is amended to read as 
follows:

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

    ``(a) Authority of Secretary.--
            ``(1) In general.--The Secretary may establish, and award 
        grants for projects for, a multi-year research initiative on 
        human nutrition intervention and health promotion.
            ``(2) Emphasis of initiative.--In administering human 
        nutrition research projects under this section, the Secretary 
        shall give specific emphasis to--
                    ``(A) coordinated longitudinal research assessments 
                of nutritional status; and
                    ``(B) the implementation of unified, innovative 
                intervention strategies;
        to identify and solve problems of nutritional inadequacy and 
        contribute to the maintenance of health, well-being, 
        performance, and productivity of individuals, thereby reducing 
        the need of the individuals to use the health care system and 
        social programs of the United States.
    ``(b) Administration of Funds.--The Administrator of the 
Agricultural Research Service shall administer funds made available to 
carry out this section to ensure a coordinated approach to health and 
nutrition research efforts.
    ``(c) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section for 
fiscal years 1996 through 2002.''.

SEC. 812. FOOD AND NUTRITION EDUCATION PROGRAM.

    Section 1425(c)(3) of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3175(c)(3)) is 
amended by striking ``fiscal year 1995'' and inserting ``each of fiscal 
years 1996 through 2002''.

SEC. 813. PURPOSES AND FINDINGS RELATING TO ANIMAL HEALTH AND DISEASE 
              RESEARCH.

    Section 1429 of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3191) is amended to read as 
follows:

``SEC. 1429. PURPOSES AND FINDINGS RELATING TO ANIMAL HEALTH AND 
              DISEASE RESEARCH.

    ``(a) Purposes.--The purposes of this subtitle are to--
            ``(1) promote the general welfare through the improved 
        health and productivity of domestic livestock, poultry, aquatic 
        animals, and other income-producing animals that are essential 
        to the food supply of the United States and the welfare of 
        producers and consumers of animal products;
            ``(2) improve the health of horses;
            ``(3) facilitate the effective treatment of, and, to the 
        extent possible, prevent animal and poultry diseases in both 
        domesticated and wild animals that, if not controlled, would be 
        disastrous to the United States livestock and poultry 
        industries and endanger the food supply of the United States;
            ``(4) improve methods for the control of organisms and 
        residues in food products of animal origin that could endanger 
        the human food supply;
            ``(5) improve the housing and management of animals to 
        improve the well-being of livestock production species;
            ``(6) minimize livestock and poultry losses due to 
        transportation and handling;
            ``(7) protect human health through control of animal 
        diseases transmissible to humans;
            ``(8) improve methods of controlling the births of 
        predators and other animals; and
            ``(9) otherwise promote the general welfare through 
        expanded programs of research and extension to improve animal 
        health.
    ``(b) Findings.--Congress finds that--
            ``(1) the total animal health and disease research and 
        extension efforts of State colleges and universities and of the 
        Federal Government would be more effective if there were close 
        coordination between the efforts; and
            ``(2) colleges and universities having accredited schools 
        or colleges of veterinary medicine and State agricultural 
        experiment stations that conduct animal health and disease 
        research are especially vital in training research workers in 
        animal health and related disciplines.''.

SEC. 814. ANIMAL HEALTH SCIENCE RESEARCH ADVISORY BOARD.

    Section 1432 of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3194) is repealed.

SEC. 815. ANIMAL HEALTH AND DISEASE CONTINUING RESEARCH.

    Section 1433 of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3195) is amended--
            (1) in the first sentence of subsection (a), by striking 
        ``1995'' and inserting ``2002'';
            (2) in subsection (b)(2)--
                    (A) by striking ``domestic livestock and poultry'' 
                each place it appears and inserting ``domestic 
                livestock, poultry, and commercial aquaculture 
                species''; and
                    (B) in the second sentence, by striking ``horses, 
                and poultry'' and inserting ``horses, poultry, and 
                commercial aquaculture species'';
            (3) in subsection (d), by striking ``domestic livestock and 
        poultry'' and inserting ``domestic livestock, poultry, and 
        commercial aquaculture species''; and
            (4) in subsection (f), by striking ``domestic livestock and 
        poultry'' and inserting ``domestic livestock, poultry, and 
        commercial aquaculture species''.

SEC. 816. ANIMAL HEALTH AND DISEASE NATIONAL OR REGIONAL RESEARCH.

    Section 1434 of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3196) is amended--
            (1) in subsection (a)--
                    (A) by inserting ``or national or regional problems 
                relating to pre-harvest, on-farm food safety, or animal 
                well-being,'' after ``problems,''; and
                    (B) by striking ``1995'' and inserting ``2002'';
            (2) in subsection (b), by striking ``eligible 
        institutions'' and inserting ``State agricultural experiment 
        stations, colleges and universities, other research 
        institutions and organizations, Federal agencies, private 
        organizations or corporations, and individuals'';
            (3) in subsection (c)--
                    (A) in the first sentence, by inserting ``, food 
                safety, and animal well-being'' after ``animal health 
                and disease''; and
                    (B) in the fourth sentence--
                            (i) by redesignating paragraphs (2) and (3) 
                        as paragraphs (4) and (5), respectively; and
                            (ii) by inserting after paragraph (1) the 
                        following:
            ``(2) any food safety problem that has a significant pre-
        harvest (on-farm) component and is recognized as posing a 
        significant health hazard to the consuming public;
            ``(3) issues of animal well-being related to production 
        methods that will improve the housing and management of animals 
        to improve the well-being of livestock production species;'';
            (4) in the first sentence of subsection (d), by striking 
        ``to eligible institutions''; and
            (5) by adding at the end the following:
    ``(f) Applicability of Federal Advisory Committee Act.--The Federal 
Advisory Committee Act (5 U.S.C. App.) and title XVIII of the Food and 
Agriculture Act of 1977 (7 U.S.C. 2281 et seq.) shall not apply to a 
panel or board created solely for the purpose of reviewing applications 
or proposals submitted under this subtitle.''.

SEC. 817. RESIDENT INSTRUCTION PROGRAM AT 1890 LAND-GRANT COLLEGES.

    Section 1446 of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3222a) is repealed.

SEC. 818. GRANT PROGRAM TO UPGRADE AGRICULTURAL AND FOOD SCIENCES 
              FACILITIES AT 1890 LAND-GRANT COLLEGES.

    Section 1447(b) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3222b(b)) is amended by 
striking ``$8,000,000 for each of the fiscal years 1991 through 1995'' 
and inserting ``$15,000,000 for each of fiscal years 1996 through 
2002''.

SEC. 819. NATIONAL RESEARCH AND TRAINING CENTENNIAL CENTERS 
              AUTHORIZATION.

    Section 1448 of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3222c) is amended--
            (1) in subsection (a)(1), by inserting ``, or fiscal years 
        1996 through 2002,'' after ``1995''; and
            (2) in subsection (f), by striking ``1995'' and inserting 
        ``2002''.

SEC. 820. GRANTS TO STATES FOR INTERNATIONAL TRADE DEVELOPMENT CENTERS.

    Section 1458A of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3292) is repealed.

SEC. 821. AGRICULTURAL RESEARCH PROGRAMS.

    Section 1463 of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3311) is amended by striking 
``1995'' each place it appears and inserting ``2002''.

SEC. 822. EXTENSION EDUCATION.

    Section 1464 of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3312) is amended by striking 
``fiscal year 1995'' and inserting ``each of fiscal years 1995 through 
2002''.

SEC. 823. SUPPLEMENTAL AND ALTERNATIVE CROPS RESEARCH.

    Section 1473D of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3319d) is amended--
            (1) in subsection (a)--
                    (A) by striking ``1995'' and inserting ``2002''; 
                and
                    (B) by striking ``and pilot'';
            (2) in subsection (c)--
                    (A) in paragraph (2)--
                            (i) in subparagraph (B), by striking ``at 
                        pilot sites'' through ``the area''; and
                            (ii) in subparagraph (D)--
                                    (I) by striking ``near such pilot 
                                sites''; and
                                    (II) by striking ``successful pilot 
                                program'' and inserting ``successful 
                                program'';
                    (B) in paragraph (3)--
                            (i) by striking ``pilot'';
                            (ii) in subparagraph (C), by striking 
                        ``and'' at the end;
                            (iii) in subparagraph (D), by striking the 
                        period at the end and inserting a semicolon; 
                        and
                    (iv) by adding at the end the following:
            ``(E) to conduct fundamental and applied research related 
        to the development of new commercial products derived from 
        natural plant material for industrial, medical, and 
        agricultural applications; and
            ``(F) to participate with colleges and universities, other 
        Federal agencies, and private sector entities in conducting 
        research described in subparagraph (E).''

SEC. 824. AQUACULTURE ASSISTANCE PROGRAMS.

    (a) Reports.--Section 1475 of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3322) is amended--
            (1) by striking subsection (e); and
            (2) by redesignating subsections (f) and (g) as subsections 
        (e) and (f), respectively.
    (b) Aquaculture Research Facilities.--Section 1476(b) of the 
National Agricultural Research, Extension, and Teaching Policy Act of 
1977 (7 U.S.C. 3323(b)) is amended by striking ``1995'' and inserting 
``2002''.
    (c) Research and Extension.--Section 1477 of the National 
Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 
U.S.C. 3324) is amended by striking ``1995'' and inserting ``2002''.

SEC. 825. RANGELAND RESEARCH.

    (a) Reports.--Section 1481 of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3334) is repealed.
    (b) Advisory Board.--Section 1482 of the National Agricultural 
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3335) is 
repealed.
    (c) Authorization of Appropriations.--Section 1483(a) of the 
National Agricultural Research, Extension, and Teaching Policy Act of 
1977 (7 U.S.C. 3336(a)) is amended by striking ``1995'' and inserting 
``2002''.

SEC. 826. TECHNICAL AMENDMENTS.

    The table of contents of the Food and Agriculture Act of 1977 
(Public Law 95-113; 91 Stat. 913) is amended--
            (1) by striking the item relating to section 1402 and 
        inserting the following:

``Sec. 1402. Purposes of agricultural research, extension, and 
                            education.'';
            (2) by striking the items relating to sections 1406, 1407, 
        1408A, 1432, 1446, 1458A, 1481, and 1482;
            (3) by striking the item relating to section 1408 and 
        inserting the following:

``Sec. 1408. National Agricultural Research, Extension, Education, and 
                            Economics Advisory Board.'';
            (4) by striking the item relating to section 1412 and 
        inserting the following:

``Sec. 1412. Support for the Advisory Board.'';
            (5) by adding at the end of the items relating to subtitle 
        B of title XIV the following:

``Sec. 1413A. Accountability.
``Sec. 1413B. Imminent or emerging threats to food safety and animal 
                            and plant health.
``Sec. 1413C. Federal Advisory Committee Act exemption for competitive 
                            research, extension, and education 
                            programs.'';
            (6) by striking the item relating to section 1419 and 
        inserting the following:

``Sec. 1419. Policy research centers.'';
            (7) by striking the item relating to section 1424 and 
        inserting the following:

``Sec. 1424. Human nutrition intervention and health promotion research 
                            program.'';
        and
            (8) by striking the item relating to section 1429 and 
        inserting the following:

``Sec. 1429. Purposes and findings relating to animal health and 
                            disease research.''.

 Subtitle B--Amendments to Food, Agriculture, Conservation, and Trade 
                              Act of 1990

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

    (a) In General.--Subtitle G of title XIV of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 5501 et seq.) is 
repealed.
    (b) Conforming Amendments.--
            (1) Section 1627(a)(3) of the Food, Agriculture, 
        Conservation, and Trade Act of 1990 (7 U.S.C. 5821(a)(3)) is 
        amended by striking ``, subtitle G of title XIV,''.
            (2) Section 1628 of the Food, Agriculture, Conservation, 
        and Trade Act of 1990 (7 U.S.C. 5831) is amended by striking 
        ``, subtitle G of title XIV,'' each place it appears in 
        subsections (a) and (d).
            (3) Section 1629 of the Food, Agriculture, Conservation, 
        and Trade Act of 1990 (7 U.S.C. 5832) is amended by striking 
        ``, subtitle G of title XIV,'' each place it appears in 
        subsections (f) and (g)(11).

SEC. 832. EDUCATION PROGRAM REGARDING HANDLING OF AGRICULTURAL 
              CHEMICALS AND AGRICULTURAL CHEMICAL CONTAINERS.

    (a) In General.--Section 1499A of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 3125c) is repealed.
    (b) Conforming Amendment.--Section 1499(b) of the Food, 
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5506(b)) is 
amended by striking ``and section 1499A''.

SEC. 833. PROGRAM ADMINISTRATION.

    (a) In General.--Section 1622 of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 5812) is amended--
            (1) by striking subsections (b), (c), and (d); and
            (2) by redesignating subsection (e) as subsection (b).
    (b) Conforming Amendments.--
            (1) Section 1619(b) of the Food, Agriculture, Conservation, 
        and Trade Act of 1990 (7 U.S.C. 5801(b)) is amended--
                    (A) by striking paragraph (7); and
                    (B) by redesignating paragraphs (8), (9), and (10) 
                as paragraphs (7), (8), and (9), respectively.
            (2) Section 1621(c) of the Food, Agriculture, Conservation, 
        and Trade Act of 1990 (7 U.S.C. 5811(c)) is amended--
                    (A) in paragraph (1)--
                            (i) by striking subparagraph (A); and
                            (ii) by redesignating subparagraphs (B) 
                        through (E) as subparagraphs (A) through (D), 
                        respectively; and
                    (B) in paragraph (2)--
                            (i) by striking subparagraph (A); and
                            (ii) by redesignating subparagraphs (B) 
                        through (F) as subparagraphs (A) through (E), 
                        respectively.
            (3) Section 1622 of the Food, Agriculture, Conservation, 
        and Trade Act of 1990 (7 U.S.C. 5812) (as amended by subsection 
        (a)) is further amended--
                    (A) in subsection (a)--
                            (i) by striking paragraph (2);
                            (ii) in paragraph (3), by striking 
                        ``subsection (e)'' and inserting ``subsection 
                        (b)''; and
                            (iii) by redesignating paragraphs (3) and 
                        (4) as paragraphs (2) and (3), respectively; 
                        and
                    (B) in subsection (b)(2)--
                            (i) by striking subparagraph (A); and
                            (ii) by redesignating subparagraphs (B) 
                        through (F) as subparagraphs (A) through (E), 
                        respectively.
            (4) Section 1628(b) of the Food, Agriculture, Conservation, 
        and Trade Act of 1990 (7 U.S.C. 5831(b)) is amended by striking 
        ``Advisory Council, the Soil Conservation Service,'' and 
        inserting ``Natural Resources Conservation Service''.

SEC. 834. NATIONAL GENETICS RESOURCES PROGRAM.

    (a) Functions.--Section 1632(d) of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 5841(d)) is amended by 
striking paragraph (4) and inserting the following:
            ``(4) unless otherwise prohibited by law, have the right to 
        make available on request, without charge and without regard to 
        the country from which the request originates, the genetic 
        material that the program assembles;''.
    (b) Authorization of Appropriations.--Section 1635(b) of the Food, 
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5844(b)) is 
amended by striking ``1995'' and inserting ``2002''.

SEC. 835. NATIONAL AGRICULTURAL WEATHER INFORMATION SYSTEM.

    Section 1641(c) of the Food, Agriculture, Conservation, and Trade 
Act of 1990 (7 U.S.C. 5855(c)) is amended by striking ``1995'' and 
inserting ``2002''.

SEC. 836. RESEARCH REGARDING PRODUCTION, PREPARATION, PROCESSING, 
              HANDLING, AND STORAGE OF AGRICULTURAL PRODUCTS.

    Subtitle E of title XVI of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 5871 et seq.) is repealed.

SEC. 837. PLANT AND ANIMAL PEST AND DISEASE CONTROL PROGRAM.

    (a) In General.--Subtitle F of title XVI of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 5881) is repealed.
    (b) Conforming Amendments.--
            (1) Section 28(b)(2)(A) of the Federal Insecticide, 
        Fungicide, and Rodenticide Act (7 U.S.C. 136w-3(b)(2)(A)) is 
        amended by striking ``and the information required by section 
        1651 of the Food, Agriculture, Conservation, and Trade Act of 
        1990''.
            (2) Section 1627(a)(3) of the Food, Agriculture, 
        Conservation, and Trade Act of 1990 (7 U.S.C. 5821(a)(3)) is 
        amended by striking ``and section 1650''.
            (3) Section 1628 of the Food, Agriculture, Conservation, 
        and Trade Act of 1990 (7 U.S.C. 5831) is amended by striking 
        ``section 1650,'' each place it appears in subsections (a) and 
        (d).
            (4) Section 1629 of the Food, Agriculture, Conservation, 
        and Trade Act of 1990 (7 U.S.C. 5832) is amended by striking 
        ``section 1650,'' each place it appears in subsections (f) and 
        (g)(11).

SEC. 838. LIVESTOCK PRODUCT SAFETY AND INSPECTION PROGRAM.

    Section 1670(e) of the Food, Agriculture, Conservation, and Trade 
Act of 1990 (7 U.S.C. 5923(e)) is amended by striking ``1995'' and 
inserting ``2002''.

SEC. 839. PLANT GENOME MAPPING PROGRAM.

    Section 1671 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 5924) is repealed.

SEC. 840. SPECIALIZED RESEARCH PROGRAMS.

    Section 1672 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 5925) is repealed.

SEC. 841. AGRICULTURAL TELECOMMUNICATIONS PROGRAM.

    Section 1673(h) of the Food, Agriculture, Conservation, and Trade 
Act of 1990 (7 U.S.C. 5926(h)) is amended by striking ``1995'' and 
inserting ``2002''.

SEC. 842. NATIONAL CENTERS FOR AGRICULTURAL PRODUCT QUALITY RESEARCH.

    Section 1675(g)(1) of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 5928(g)(1)) is amended by striking ``1995'' 
and inserting ``2002''.

SEC. 843. TURKEY RESEARCH CENTER AUTHORIZATION.

    Section 1676 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 5929) is repealed.

SEC. 844. SPECIAL GRANT TO STUDY CONSTRAINTS ON AGRICULTURAL TRADE.

    Section 1678 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 5931) is repealed.

SEC. 845. PILOT PROJECT TO COORDINATE FOOD AND NUTRITION EDUCATION 
              PROGRAMS.

    Section 1679 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 5932) is repealed.

SEC. 846. ASSISTIVE TECHNOLOGY PROGRAM FOR FARMERS WITH DISABILITIES.

    Section 1680 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 5933) is amended--
            (1) in subsection (a)(6)(B), by striking ``1996'' and 
        inserting ``2002''; and
            (2) in subsection (b)(2), by striking ``1996'' and 
        inserting ``2002''.

SEC. 847. DEMONSTRATION PROJECTS.

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

SEC. 848. NATIONAL RURAL INFORMATION CENTER CLEARINGHOUSE.

    Section 2381(e) of the Food, Agriculture, Conservation, and Trade 
Act of 1990 (7 U.S.C. 3125b(e)) is amended by striking ``1995'' and 
inserting ``2002''.

SEC. 849. GLOBAL CLIMATE CHANGE.

    (a) Technical Advisory Committee.--Section 2404 of the Food, 
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 6703) is 
repealed.
    (b) Authorization of Appropriations.--Section 2412 of the Food, 
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 6710) is 
amended by striking ``1996'' and inserting ``2002''.

SEC. 850. TECHNICAL AMENDMENTS.

    The table of contents of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (Public Law 101-624; 104 Stat. 3359) is amended by 
striking the items relating to subtitle G of title XIV, section 1499A, 
subtitles E and F of title XVI, and sections 1671, 1672, 1676, 1678, 
1679, 2348, and 2404.

             Subtitle C--Miscellaneous Research Provisions

SEC. 861. CRITICAL AGRICULTURAL MATERIALS RESEARCH.

    (a) In General.--Section 4 of the Critical Agricultural Materials 
Act (7 U.S.C. 178b) is amended--
            (1) by striking subsection (g); and
            (2) by redesignating subsection (h) as subsection (g).
    (b) Authorization of Appropriations.--Section 16(a) of the Critical 
Agricultural Materials Act (7 U.S.C. 178n(a)) is amended by striking 
``1995'' and inserting ``2002''.

SEC. 862. 1994 INSTITUTIONS.

    (a) Land-Grant Status.--The first sentence of section 533(b) of the 
Equity in Educational Land-Grant Status Act of 1994 (Public Law 103-
382; 7 U.S.C. 301 note) is amended by striking ``2000'' and inserting 
``2002''.
    (b) Institutional Capacity Building Grants.--Section 535 of the 
Equity in Educational Land-Grant Status Act of 1994 (Public Law 103-
382; 7 U.S.C. 301 note) is amended by striking ``2000'' each place it 
appears in subsections (b)(1) and (c) and inserting ``2002''.

SEC. 863. SMITH-LEVER ACT FUNDING FOR 1890 LAND-GRANT COLLEGES, 
              INCLUDING TUSKEGEE UNIVERSITY AND THE DISTRICT OF 
              COLUMBIA.

    (a) Eligibility for Funds.--Section 3(d) of the Act of May 8, 1914 
(commonly known as the ``Smith-Lever Act'') (38 Stat. 373, chapter 79; 
7 U.S.C. 343(d)), is amended by adding at the end the following: ``A 
college or university eligible to receive funds under the Act of August 
30, 1890 (26 Stat. 417, chapter 841; 7 U.S.C. 321 et seq.), including 
Tuskegee University, or section 208 of the District of Columbia Public 
Postsecondary Education Reorganization Act (Public Law 93-471; 88 Stat. 
1428) may apply for and receive directly from the Secretary of 
Agriculture--
            ``(1) amounts made available under this subsection after 
        September 30, 1995, to carry out programs or initiatives for 
        which no funds were made available under this subsection for 
        fiscal year 1995, or any previous fiscal year, as determined by 
        the Secretary; and
            ``(2) amounts made available after September 30, 1995, to 
        carry out programs or initiatives funded under this subsection 
        prior to that date that are in excess of the highest amount 
        made available for the programs or initiatives under this 
        subsection for fiscal year 1995, or any previous fiscal year, 
        as determined by the Secretary.''.
    (b) Conforming Amendments.--
            (1) The third sentence of section 1444(a) of the National 
        Agricultural Research, Extension, and Teaching Policy Act of 
        1977 (7 U.S.C. 3221(a)) is amended by inserting before the 
        period at the end the following: ``, except that for the 
        purpose of this calculation, the total appropriations shall not 
        include amounts made available after September 30, 1995, under 
        section 3(d) of the Act of May 8, 1914 (commonly known as the 
        `Smith-Lever Act') (38 Stat. 373, chapter 79; 7 U.S.C. 343(d)), 
        to carry out programs or initiatives for which no funds were 
        made available under section 3(d) of the Act for fiscal year 
        1995, or any previous fiscal year, as determined by the 
        Secretary, and shall not include amounts made available after 
        September 30, 1995, to carry out programs or initiatives funded 
        under section 3(d) of the Act prior to that date that are in 
        excess of the highest amount made available for the programs or 
        initiatives for fiscal year 1995, or any previous fiscal year, 
        as determined by the Secretary.''.
            (2) Section 208(c) of the District of Columbia Public 
        Postsecondary Education Reorganization Act (Public Law 93-471; 
        88 Stat. 1428) is amended by adding at the end the following: 
        ``Funds appropriated under this subsection shall be in addition 
        to any amounts provided to the District of Columbia from--
            ``(1) amounts made available after September 30, 1995, 
        under section 3(d) of the Act to carry out programs or 
        initiatives for which no funds were made available under 
        section 3(d) of the Act for fiscal year 1995, or any previous 
        fiscal year, as determined by the Secretary of Agriculture; and
            ``(2) amounts made available after September 30, 1995, to 
        carry out programs or initiatives funded under section 3(d) of 
        the Act prior to the date that are in excess of the highest 
        amount made available for the programs or initiatives for 
        fiscal year 1995, or any previous fiscal year, as determined by 
        the Secretary of Agriculture.''.

SEC. 864. COMMITTEE OF NINE.

    Section 3(c)(3) of the Act of March 2, 1887 (Chapter 314; 7 U.S.C. 
361c(c)(3)) is amended by striking from ``, and shall be used'' through 
the end of the paragraph and inserting a period.

SEC. 865. AGRICULTURAL RESEARCH FACILITIES.

    (a) In General.--
            (1) Research facilities.--The Research Facilities Act (7 
        U.S.C. 390 et seq.) is amended to read as follows:

``SECTION 1. SHORT TITLE.

    ``This Act may be cited as the `Research Facilities Act'.

``SEC. 2. DEFINITIONS.

    ``In this Act:
            ``(1) Agricultural research facility.--The term 
        `agricultural research facility' means a proposed facility for 
        research in food and agricultural sciences for which Federal 
        funds are requested by a college, university, or nonprofit 
        institution to assist in the construction, alteration, 
        acquisition, modernization, renovation, or remodeling of the 
        facility.
            ``(2) Food and agricultural sciences.--The term `food and 
        agricultural sciences' means--
                    ``(A) agriculture, including soil and water 
                conservation and use, the use of organic materials to 
                improve soil tilth and fertility, plant and animal 
                production and protection, and plant and animal health;
                    ``(B) the processing, distributing, marketing, and 
                utilization of food and agricultural products;
                    ``(C) forestry, including range management, 
                production of forest and range products. multiple use 
                of forest and rangelands, and urban forestry;
                    ``(D) aquaculture (as defined in section 1404(3) of 
                the National Agricultural Research, Extension, and 
                Teaching Policy Act of 1977 (7 U.S.C. 3103(3));
                    ``(E) human nutrition;
                    ``(F) production inputs, such as energy, to improve 
                productivity; and
                    ``(G) germ plasm collection and preservation.
            ``(3) Secretary.--The term `Secretary' means the Secretary 
        of Agriculture.

``SEC. 3. REVIEW PROCESS.

    ``(a) Submission to Secretary.--Each proposal for an agricultural 
research facility shall be submitted to the Secretary for review. The 
Secretary shall review the proposals in the order in which the 
proposals are received.
    ``(b) Application Process.--In consultation with the Committee on 
Appropriations of the Senate and Committee on Appropriations of the 
House of Representatives, the Secretary shall establish an application 
process for the submission of proposals for agricultural research 
facilities.
    ``(c) Criteria for Approval.--
            ``(1) Determination by secretary.--With respect to each 
        proposal for an agricultural research facility submitted under 
        subsection (a), the Secretary shall determine whether the 
        proposal meets the criteria set forth in paragraph (2).
            ``(2) Criteria.--A proposal for an agricultural research 
        facility shall meet the following criteria:
                    ``(A) Non-federal share.--The proposal shall 
                certify the availability of at least a 50 percent non-
                Federal share of the cost of the facility. The non-
                Federal share shall be paid in cash and may include 
                funding from private sources or from units of State or 
                local government.
                    ``(B) Nonduplication of facilities.--The proposal 
                shall demonstrate how the agricultural research 
                facility would be complementary to, and not duplicative 
                of, facilities of colleges, universities, and nonprofit 
                institutions, and facilities of the Agricultural 
                Research Service, within the State and region.
                    ``(C) National research priorities.--The proposal 
                shall demonstrate how the agricultural research 
                facility would serve--
                            ``(i) 1 or more of the national research 
                        policies and priorities set forth in section 
                        1402 of the National Agricultural Research, 
                        Extension, and Teaching Policy Act of 1977 (7 
                        U.S.C. 3101); and
                            ``(ii) regional needs.
                    ``(D) Long-term support.--The proposal shall 
                demonstrate that the recipient college, university, or 
                nonprofit institution has the ability and commitment to 
                support the long-term, ongoing operating costs of--
                            ``(i) the agricultural research facility 
                        after the facility is completed; and
                            ``(ii) each program to be based at the 
                        facility.
                    ``(E) Strategic plan.--After the development of the 
                strategic plan required by section 4, the proposal 
                shall demonstrate how the agricultural research 
                facility reflects the strategic plan for Federal 
                research facilities.
    ``(d) Evaluation of Proposals.--Not later than 90 days after 
receiving a proposal under subsection (a), the Secretary shall--
            ``(1) evaluate and assess the merits of the proposal, 
        including the extent to which the proposal meets the criteria 
        set forth in subsection (c); and
            ``(2) report to the Committee on Appropriations of the 
        Senate and Committee on Appropriations of the House of 
        Representatives on the results of the evaluation and 
        assessment.

``SEC. 4. STRATEGIC PLAN FOR FEDERAL RESEARCH FACILITIES.

    ``(a) In General.--Not later than September 30, 1997, the Secretary 
shall develop a comprehensive plan for the development, construction, 
modernization, consolidation, and closure of federally supported 
agricultural research facilities.
    ``(b) Factors.--In developing the plan, the Secretary shall 
consider--
            ``(1) the need to increase agricultural productivity and to 
        enhance the competitiveness of the United States agriculture 
        and food industry as set forth in section 1402 of the National 
        Agricultural Research, Extension, and Teaching Policy Act of 
        1977 (7 U.S.C. 3101); and
            ``(2) the findings of the National Academy of Sciences with 
        respect to programmatic and scientific priorities relating to 
        agriculture.
    ``(c) Implementation.--The plan shall be developed for 
implementation over the 10-fiscal year period beginning with fiscal 
year 1998.

``SEC. 5. APPLICABILITY OF FEDERAL ADVISORY COMMITTEE ACT.

    ``The Federal Advisory Committee Act (5 U.S.C. App) and title XVIII 
of the Food and Agriculture Act of 1977 (7 U.S.C. 2281 et. seq) shall 
not apply to a panel or board created solely for the purpose of 
reviewing applications or proposals submitted under this Act.

``SEC. 6. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--Subject to subsection (b), there are authorized 
to be appropriated such sums as are necessary for fiscal years 1996 
through 2002 for the study, plan, design, structure, and related costs 
of agricultural research facilities under this Act.
    ``(b) Allowable Administrative Costs.--Not more than 3 percent of 
the funds made available for any project for an agricultural research 
facility shall be available for administration of the project.''.
            (2) Application.--
                    (A) Current projects.--The amendment made by 
                paragraph (1), other than section 4 of the Research 
                Facilities Act (as amended by paragraph (1)), shall not 
                apply to any project for an agricultural research 
                facility for which funds have been made available for a 
                feasibility study or for any phase of the project prior 
                to October 1, 1995.
                    (B) Strategic Plan.--The strategic plan required by 
                section 4 of the Act shall apply to all federally 
                supported agricultural research facilities, including 
                projects funded prior to the effective date of this 
                title.
    (b) Authorization of Appropriations for Federal Facilities.--
Section 1431 of the National Agricultural Research, Extension, and 
Teaching Policy Act Amendments of 1985 (Public Law 99-198; 99 Stat. 
1556) is amended--
            (1) in subsection (a)--
                    (A) by striking ``(a)''; and
                    (B) by striking ``1995'' and inserting ``2002''; 
                and
            (2) by striking subsection (b).
    (c) Conforming Amendment.--Section 1463(a) of the National 
Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 
U.S.C. 3311(a)) is amended by striking ``1416,''.

SEC. 866. NATIONAL COMPETITIVE RESEARCH INITIATIVE.

    Subsection (b)(10) of the Competitive, Special, and Facilities 
Research Grant Act (7 U.S.C. 450i(b)(10)) is amended--
            (1) by striking ``of Appropriations.--There'' and inserting 
        the following: ``and availability of appropriations.--
                    ``(A) In general.--There'';
            (2) by striking ``fiscal year 1995'' and inserting ``each 
        of fiscal years 1995 through 2002'';
            (3) by striking ``(A) not'' and inserting the following:
                            ``(i) not'';
            (4) by striking ``(B) not'' and inserting the following:
                            ``(ii) not'';
            (5) in clause (ii) (as so designated), by striking ``20 
        percent'' and inserting ``40 percent'';
            (6) by striking ``(C) not'' and inserting the following:
                            ``(iii) not'';
            (7) by striking ``(D) not'' and inserting the following:
                            ``(iv) not'';
            (8) by striking ``(E) not'' and inserting the following:
                            ``(v) not''; and
            (9) by adding at the end the following:
                    ``(B) Availability.--Funds made available under 
                subparagraph (A) shall be available for obligation for 
                a period of 2 years from the beginning of the fiscal 
                year for which the funds are made available.''.

SEC. 867. COTTON CROP REPORTS.

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

SEC. 868. RURAL DEVELOPMENT RESEARCH AND EDUCATION.

    Section 502 of the Rural Development Act of 1972 (7 U.S.C. 2662) is 
amended--
            (1) in subsection (a), by inserting after the first 
        sentence the following: ``The rural development extension 
        programs shall also promote coordinated and integrated rural 
        community initiatives that advance and empower capacity 
        building through leadership development, entrepreneurship, 
        business development and management training and strategic 
        planning to increase jobs, income, and quality of life in rural 
        communities.'';
            (2) by striking subsections (g) and (j); and
            (3) by redesignating subsections (h) and (i) as subsections 
        (g) and (h) respectively.

SEC. 869. HUMAN NUTRITION RESEARCH.

    Section 1452 of the National Agricultural Research, Extension, and 
Teaching Policy Act Amendments of 1985 (Public Law 99-198; 7 U.S.C. 
3173 note) is repealed.

SEC. 870. DAIRY GOAT RESEARCH PROGRAM.

    Section 1432 of the National Agricultural Research, Extension, and 
Teaching Policy Act Amendments of 1981 (Public Law 97-98; 7 U.S.C. 3222 
note) is amended--
            (1) in subsection (a), by striking ``(a)''; and
            (2) by striking subsection (b).

SEC. 871. GRANTS TO UPGRADE 1890 LAND-GRANT COLLEGE EXTENSION 
              FACILITIES.

    (a) In General.--Section 1416 of the Food Security Act of 1985 (7 
U.S.C. 3224) is repealed.
    (b) Technical Amendment.--The table of contents of the Food 
Security Act of 1985 (Public Law 99-198; 99 Stat. 1354) is amended by 
striking the item relating to section 1416.

SEC. 872. STUTTGART NATIONAL AQUACULTURE RESEARCH CENTER.

    (a) Transfer of Functions to the Secretary of Agriculture.--
            (1) Title of public law 85-342.--The title of Public Law 
        85-342 (16 U.S.C. 778 et seq.) is amended by striking 
        ``Secretary of the Interior'' and inserting ``Secretary of 
        Agriculture''.
            (2) Authorization.--The first section of Public Law 85-342 
        (16 U.S.C. 778) is amended--
                    (A) by striking ``Secretary of the Interior'' and 
                all that follows through ``directed to'' and inserting 
                ``Secretary of Agriculture shall'';
                    (B) by striking ``station and stations'' and 
                inserting ``1 or more centers''; and
                    (C) in paragraph (5), by striking ``Department of 
                Agriculture'' and inserting ``Secretary of the 
                Interior''.
            (3) Authority.--Section 2 of Public Law 85-342 (16 U.S.C. 
        778a) is amended by striking ``, the Secretary'' and all that 
        follows through ``authorized'' and inserting ``, the Secretary 
        of Agriculture is authorized''.
            (4) Assistance.--Section 3 of Public Law 85-342 (16 U.S.C. 
        778b) is amended--
                    (A) by striking ``Secretary of the Interior'' and 
                inserting ``Secretary of Agriculture''; and
                    (B) by striking ``Department of Agriculture'' and 
                inserting ``Secretary of the Interior''.
    (b) Transfer of Fish Farming Experimental Laboratory to Department 
of Agriculture.--
            (1) Designation of stuttgart national aquaculture research 
        center.--
                    (A) In general.--The Fish Farming Experimental 
                Laboratory in Stuttgart, Arkansas (including the 
                facilities in Kelso, Arkansas), shall be known and 
                designated as the ``Stuttgart National Aquaculture 
                Research Center''.
                    (B) References.--Any reference in a law, map, 
                regulation, document, paper, or other record of the 
                United States to the laboratory referred to in 
                subparagraph (A) shall be deemed to be a reference to 
                the ``Stuttgart National Aquaculture Research Center''.
            (2) Transfer of laboratory to the department of 
        agriculture.--Subject to section 1531 of title 31, United 
        States Code, not later than 90 days after the effective date of 
        this title, there are transferred to the Department of 
        Agriculture--
                    (A) the personnel employed in connection with the 
                laboratory referred to in paragraph (1);
                    (B) the assets, liabilities, contracts, and real 
                and personal property of the laboratory;
                    (C) the records of the laboratory; and
                    (D) the unexpended balance of appropriations, 
                authorizations, allocations and other funds employed, 
                held, arising from, available to, or to be made 
                available in connection with the laboratory.
            (3) Nonduplication.--The research center referred to in 
        paragraph (1)(A) shall be complementary to, and not duplicative 
        of, facilities of colleges, universities, and nonprofit 
        institutions, and facilities of the Agricultural Research 
        Service, within the State and region, as determined by the 
        Administrator of the Service.

SEC. 873. NATIONAL AQUACULTURE POLICY, PLANNING, AND DEVELOPMENT.

    (a) Definitions.--Section 3 of the National Aquaculture Act of 1980 
(16 U.S.C. 2802) is amended--
            (1) in paragraph (1), by striking ``the propagation'' and 
        all that follows through the period at the end and inserting 
        the following: ``the commercially controlled cultivation of 
        aquatic plants, animals, and microorganisms, but does not 
        include private for-profit ocean ranching of Pacific salmon in 
        a State in which the ranching is prohibited by law.'';
            (2) in paragraph (3), by striking ``or aquatic plant'' and 
        inserting ``aquatic plant, or microorganism'';
            (3) by redesignating paragraphs (7) through (9) as 
        paragraphs (8) through (10), respectively; and
            (4) by inserting after paragraph (6) the following:
            ``(7) The term `private aquaculture' means the commercially 
        controlled cultivation of aquatic plants, animals, and 
        microorganisms other than cultivation carried out by the 
        Federal Government, any State or local government, or an Indian 
        tribe recognized by the Bureau of Indian Affairs.''.
    (b) National Aquaculture Development Plan.--Section 4 of the 
National Aquaculture Act of 1980 (16 U.S.C. 2803) is amended--
            (1) in subsection (c)--
                    (A) in subparagraph (A), by adding ``and'' at the 
                end;
                    (B) in subparagraph (B), by striking ``; and'' and 
                inserting a period; and
                    (C) by striking subparagraph (C);
            (2) in the second sentence of subsection (d), by striking 
        ``Secretaries determine that'' and inserting ``Secretary, in 
        consultation with the Secretary of Commerce, the Secretary of 
        the Interior, and the heads of such other agencies as the 
        Secretary determines are appropriate, determines that''; and
            (3) in subsection (e), by striking ``Secretaries'' and 
        inserting ``Secretary, in consultation with the Secretary of 
        Commerce, the Secretary of the Interior, and the heads of such 
        other agencies as the Secretary determines are appropriate,''.
    (c) Functions and Powers of Secretaries.--Section 5(b)(3) of the 
National Aquaculture Act of 1980 (16 U.S.C. 2804(b)(3)) is amended by 
striking ``Secretaries deem'' and inserting ``Secretary, in 
consultation with the Secretary of Commerce, the Secretary of the 
Interior, and the heads of such other agencies as the Secretary 
determines are appropriate, consider''.
    (d) Coordination of National Activities Regarding Aquaculture.--The 
first sentence of section 6(a) of the National Aquaculture Act of 1980 
(16 U.S.C. 2805(a)) is amended by striking ``(f)'' and inserting 
``(e)''.
    (e) National Policy for Private Aquaculture.--The National 
Aquaculture Act of 1980 (16 U.S.C. 2801 et seq.) is amended--
            (1) by redesignating sections 7, 8, 9, 10, and 11 as 
        sections 8, 9, 10, 11, and 12, respectively; and
            (2) by inserting after section 6 (16 U.S.C. 2805) the 
        following:

``SEC. 7. NATIONAL POLICY FOR PRIVATE AQUACULTURE.

    ``(a) In General.--In consultation with the Secretary of Commerce 
and the Secretary of the Interior, the Secretary shall coordinate and 
implement a national policy for private aquaculture in accordance with 
this section. In developing the policy, the Secretary may consult with 
other agencies and organizations.
    ``(b) Department of Agriculture Aquaculture Plan.--
            ``(1) In general.--The Secretary shall develop and 
        implement a Department of Agriculture Aquaculture Plan 
        (referred to in this section as the `Department plan') for a 
        unified aquaculture program of the Department of Agriculture 
        (referred to in this section as the `Department') to support 
        the development of private aquaculture.
            ``(2) Elements of department plan.--The Department plan 
        shall address--
                    ``(A) programs of individual agencies of the 
                Department related to aquaculture that are consistent 
                with Department programs related to other areas of 
                agriculture, including livestock, crops, products, and 
                commodities under the jurisdiction of agencies of the 
                Department;
                    ``(B) the treatment of cultivated aquatic animals 
                as livestock and cultivated aquatic plants as 
                agricultural crops; and
                    ``(C) means for effective coordination and 
                implementation of aquaculture activities and programs 
                within the Department, including individual agency 
                commitments of personnel and resources.
    ``(c) National Aquaculture Information Center.--In carrying out 
section 5, the Secretary may maintain and support a National 
Aquaculture Information Center at the National Agricultural Library as 
a repository for information on national and international aquaculture.
    ``(d) Treatment of Aquaculture.--The Secretary shall treat--
            ``(1) private aquaculture as agriculture; and
            ``(2) commercially cultivated aquatic animals, plants, and 
        microorganisms, and products of the animals, plants, and 
        microorganisms, produced by private persons and transported or 
        moved in standard commodity channels as agricultural livestock, 
        crops, and commodities.
    ``(e) Private Aquaculture Policy Coordination, Development, and 
Implementation.--
            ``(1) Responsibility.--The Secretary shall have 
        responsibility for coordinating, developing, and carrying out 
        policies and programs for private aquaculture.
            ``(2) Duties.--The Secretary shall--
                    ``(A) coordinate all intradepartmental functions 
                and activities relating to private aquaculture; and
                    ``(B) establish procedures for the coordination of 
                functions, and consultation with, the coordinating 
                group.
    ``(f) Liaison With Departments of Commerce and the Interior.--The 
Secretary of Commerce and the Secretary of the Interior shall each 
designate an officer or employee of the Department of the Secretary to 
be the liaison of the Department to the Secretary of Agriculture.''.
    (f) Authorization of Appropriations.--Section 11 of the National 
Aquaculture Act of 1980 (as redesignated by subsection (e)(1)) is 
amended by striking ``the fiscal years 1991, 1992, and 1993'' each 
place it appears and inserting ``fiscal years 1991 through 2002''.

SEC. 874. EXPANSION OF AUTHORITIES RELATED TO THE NATIONAL ARBORETUM.

    (a) Solicitation of Gifts, Benefits, and Devises.--The first 
sentence of section 5 of the Act of March 4, 1927 (89 Stat. 683; 20 
U.S.C. 195), is amended by inserting ``solicit,'' after ``authorized 
to''.
    (b) Concessions, Fees, and Voluntary Services.--The Act of March 4, 
1927 (44 Stat. 1422, chapter 505; 20 U.S.C. 191 et seq.), is amended by 
adding at the end the following:

``SEC. 6. CONCESSIONS, FEES, AND VOLUNTARY SERVICES.

    ``(a) In General.--Notwithstanding the Federal Property and 
Administrative Services Act of 1949 (40 U.S.C. 471 et seq.) and section 
321 of the Act of June 30, 1932 (47 Stat. 412, chapter 314; 40 U.S.C. 
303b), the Secretary of Agriculture, in furtherance of the mission of 
the National Arboretum, may--
            ``(1) negotiate agreements granting concessions at the 
        National Arboretum to nonprofit scientific or educational 
        organizations the interests of which are complementary to the 
        mission of the National Arboretum, except that the net proceeds 
        of the organizations from the concessions shall be used 
        exclusively for research and educational work for the benefit 
        of the National Arboretum;
            ``(2) provide by concession, on such terms as the Secretary 
        of Agriculture considers appropriate and necessary, for 
        commercial services for food, drink, and nursery sales, if an 
        agreement for a permanent concession under this paragraph is 
        negotiated with a qualified person submitting a proposal after 
        due consideration of all proposals received after the Secretary 
        of Agriculture provides reasonable public notice of the intent 
        of the Secretary to enter into such an agreement;
            ``(3) dispose of excess property, including excess plants 
        and fish, in a manner designed to maximize revenue from any 
        sale of the property, including by way of public auction, 
        except that this paragraph shall not apply to the free 
        dissemination of new varieties of seeds and germ plasm in 
        accordance with section 520 of the Revised Statutes (commonly 
        known as the `Department of Agriculture Organic Act of 1862') 
        (7 U.S.C. 2201);
            ``(4) charge such fees as the Secretary of Agriculture 
        considers reasonable for temporary use by individuals or groups 
        of National Arboretum facilities and grounds for any purpose 
        consistent with the mission of the National Arboretum;
            ``(5) charge such fees as the Secretary of Agriculture 
        considers reasonable for the use of the National Arboretum for 
        commercial photography or cinematography;
            ``(6) publish, in print and electronically and without 
        regard to laws relating to printing by the Federal Government, 
        informational brochures, books, and other publications 
        concerning the National Arboretum or the collections of the 
        Arboretum; and
            ``(7) license use of the National Arboretum name and logo 
        for public service or commercial uses.
    ``(b) Use of Funds.--Any funds received or collected by the 
Secretary of Agriculture as a result of activities described in 
subsection (a) shall be retained in a special fund in the Treasury for 
the use and benefit of the National Arboretum as the Secretary of 
Agriculture considers appropriate.
    ``(c) Acceptance of Voluntary Services.--The Secretary of 
Agriculture may accept the voluntary services of organizations 
described in subsection (a)(1), and the voluntary services of 
individuals (including employees of the National Arboretum), for the 
benefit of the National Arboretum.''.

SEC. 875. STUDY OF AGRICULTURAL RESEARCH SERVICE.

    (a) Study.--The Secretary of Agriculture shall request the National 
Academy of Sciences to conduct a study of the role and mission of the 
Agricultural Research Service. The study shall--
            (1) evaluate the strength of science of the Service and the 
        relevance of the science to national priorities;
            (2) examine how the work of the Service relates to the 
        capacity of the United States agricultural research, education, 
        and extension system overall; and
            (3) include recommendations, as appropriate.
    (b) Report.--Not later than 18 months after the effective date of 
this title, the Secretary shall prepare a report that describes the 
results of the study conducted under subsection (a) and submit the 
report to the Committee on Agriculture of the House of Representatives 
and the Committee on Agriculture, Nutrition, and Forestry of the 
Senate.
    (c) Funding.--The Secretary shall use to carry out this section not 
more than $500,000 of funds made available to the Agricultural Research 
Service for research.

SEC. 876. LABELING OF DOMESTIC AND IMPORTED LAMB AND MUTTON.

    Section 7 of the Federal Meat Inspection Act (21 U.S.C. 607) is 
amended by adding at the end the following:
    ``(f) Lamb and Mutton.--
            ``(1) Standards.--The Secretary, consistent with United 
        States international obligations, shall establish standards for 
        the labeling of sheep carcasses, parts of carcasses, meat, and 
        meat food products as `lamb' or `mutton'.
            ``(2) Method.--The standards under paragraph (1) shall be 
        based on the use of the break or spool joint method to 
        differentiate lamb from mutton by the degree of calcification 
        of bone to reflect maturity.''.

SEC. 877. SENSE OF SENATE.

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

                    TITLE IX--AGRICULTURAL PROMOTION

                          Subtitle A--Popcorn

SEC. 901. SHORT TITLE.

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

SEC. 902. FINDINGS AND DECLARATION OF POLICY.

    (a) Findings.--Congress finds that--
            (1) popcorn is an important food that is a valuable part of 
        the human diet;
            (2) the production and processing of popcorn plays a 
        significant role in the economy of the United States in that 
        popcorn is processed by several popcorn processors, distributed 
        through wholesale and retail outlets, and consumed by millions 
        of people throughout the United States and foreign countries;
            (3) popcorn must be of high quality, readily available, 
        handled properly, and marketed efficiently to ensure that the 
        benefits of popcorn are available to the people of the United 
        States;
            (4) the maintenance and expansion of existing markets and 
        uses and the development of new markets and uses for popcorn 
        are vital to the welfare of processors and persons concerned 
        with marketing, using, and producing popcorn for the market, as 
        well as to the agricultural economy of the United States;
            (5) the cooperative development, financing, and 
        implementation of a coordinated program of popcorn promotion, 
        research, consumer information, and industry information is 
        necessary to maintain and expand markets for popcorn; and
            (6) popcorn moves in interstate and foreign commerce, and 
        popcorn that does not move in those channels of commerce 
        directly burdens or affects interstate commerce in popcorn.
    (b) Policy.--It is the policy of Congress that it is in the public 
interest to authorize the establishment, through the exercise of the 
powers provided in this subtitle, of an orderly procedure for 
developing, financing (through adequate assessments on unpopped popcorn 
processed domestically), and carrying out an effective, continuous, and 
coordinated program of promotion, research, consumer information, and 
industry information designed to--
            (1) strengthen the position of the popcorn industry in the 
        marketplace; and
            (2) maintain and expand domestic and foreign markets and 
        uses for popcorn.
    (c) Purposes.--The purposes of this subtitle are to--
            (1) maintain and expand the markets for all popcorn 
        products in a manner that--
                    (A) is not designed to maintain or expand any 
                individual share of a producer or processor of the 
                market;
                    (B) does not compete with or replace individual 
                advertising or promotion efforts designed to promote 
                individual brand name or trade name popcorn products; 
                and
                    (C) authorizes and funds programs that result in 
                government speech promoting government objectives; and
            (2) establish a nationally coordinated program for popcorn 
        promotion, research, consumer information, and industry 
        information.
    (d) Statutory Construction.--This subtitle treats processors 
equitably. Nothing in this subtitle--
            (1) provides for the imposition of a trade barrier to the 
        entry into the United States of imported popcorn for the 
        domestic market; or
            (2) provides for the control of production or otherwise 
        limits the right of any individual processor to produce 
        popcorn.

SEC. 903. DEFINITIONS.

    In this subtitle (except as otherwise specifically provided):
            (1) Board.--The term ``Board'' means the Popcorn Board 
        established under section 905(b).
            (2) Commerce.--The term ``commerce'' means interstate, 
        foreign, or intrastate commerce.
            (3) Consumer information.--The term ``consumer 
        information'' means information and programs that will assist 
        consumers and other persons in making evaluations and decisions 
        regarding the purchase, preparation, and use of popcorn.
            (4) Department.--The term ``Department'' means the 
        Department of Agriculture.
            (5) Industry information.--The term ``industry 
        information'' means information and programs that will lead to 
        the development of--
                    (A) new markets, new marketing strategies, or 
                increased efficiency for the popcorn industry; or
                    (B) activities to enhance the image of the popcorn 
                industry.
            (6) Marketing.--The term ``marketing'' means the sale or 
        other disposition of unpopped popcorn for human consumption in 
        a channel of commerce, but does not include a sale or 
        disposition to or between processors.
            (7) Order.--The term ``order'' means an order issued under 
        section 904.
            (8) Person.--The term ``person'' means an individual, group 
        of individuals, partnership, corporation, association, or 
        cooperative, or any other legal entity.
            (9) Popcorn.--The term ``popcorn'' means unpopped popcorn 
        (Zea Mays L) that is--
                    (A) commercially grown;
                    (B) processed in the United States by shelling, 
                cleaning, or drying; and
                    (C) introduced into a channel of commerce.
            (10) Process.--The term ``process'' means to shell, clean, 
        dry, and prepare popcorn for the market, but does not include 
        packaging popcorn for the market without also engaging in 
        another activity described in this paragraph.
            (11) Processor.--The term ``processor'' means a person 
        engaged in the preparation of unpopped popcorn for the market 
        who owns or shares the ownership and risk of loss of the 
        popcorn and who processes and distributes over 4,000,000 pounds 
        of popcorn in the market per year.
            (12) Promotion.--The term ``promotion'' means an action, 
        including paid advertising, to enhance the image or 
        desirability of popcorn.
            (13) Research.--The term ``research'' means any type of 
        study to advance the image, desirability, marketability, 
        production, product development, quality, or nutritional value 
        of popcorn.
            (14) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.
            (15) State.--The term ``State'' means each of the 50 States 
        and the District of Columbia.
            (16) United states.--The term ``United States'' means all 
        of the States.

SEC. 904. ISSUANCE OF ORDERS.

    (a) In General.--To effectuate the policy described in section 
902(b), the Secretary, subject to subsection (b), shall issue 1 or more 
orders applicable to processors. An order shall be applicable to all 
popcorn production and marketing areas in the United States. Not more 
than 1 order shall be in effect under this subtitle at any 1 time.
    (b) Procedure.--
            (1) Proposal or request for issuance.--The Secretary may 
        propose the issuance of an order, or an association of 
        processors or any other person that would be affected by an 
        order may request the issuance of, and submit a proposal for, 
        an order.
            (2) Notice and comment concerning proposed order.--Not 
        later than 60 days after the receipt of a request and proposal 
        for an order under paragraph (1), or at such time as the 
        Secretary determines to propose an order, the Secretary shall 
        publish a proposed order and give due notice and opportunity 
        for public comment on the proposed order.
            (3) Issuance of order.--After notice and opportunity for 
        public comment under paragraph (2), the Secretary shall issue 
        an order, taking into consideration the comments received and 
        including in the order such provisions as are necessary to 
        ensure that the order conforms to this subtitle. The order 
        shall be issued and become effective not later than 150 days 
        after the date of publication of the proposed order.
    (c) Amendments.--The Secretary, as appropriate, may amend an order. 
The provisions of this subtitle applicable to an order shall be 
applicable to any amendment to an order, except that an amendment to an 
order may not require a referendum to become effective.

SEC. 905. REQUIRED TERMS IN ORDERS.

    (a) In General.--An order shall contain the terms and conditions 
specified in this section.
    (b) Establishment and Membership of Popcorn Board.--
            (1) In general.--The order shall provide for the 
        establishment of, and appointment of members to, a Popcorn 
        Board that shall consist of not fewer than 4 members and not 
        more than 9 members.
            (2) Nominations.--The members of the Board shall be 
        processors appointed by the Secretary from nominations 
        submitted by processors in a manner authorized by the 
        Secretary, subject to paragraph (3). Not more than 1 member may 
        be appointed to the Board from nominations submitted by any 1 
        processor.
            (3) Geographical diversity.--In making appointments, the 
        Secretary shall take into account, to the extent practicable, 
        the geographical distribution of popcorn production throughout 
        the United States.
            (4) Terms.--The term of appointment of each member of the 
        Board shall be 3 years, except that the members appointed to 
        the initial Board shall serve, proportionately, for terms of 2, 
        3, and 4 years, as determined by the Secretary.
            (5) Compensation and expenses.--A member of the Board shall 
        serve without compensation, but shall be reimbursed for the 
        expenses of the member incurred in the performance of duties 
        for the Board.
    (c) Powers and Duties of Board.--The order shall define the powers 
and duties of the Board, which shall include the power and duty--
            (1) to administer the order in accordance with the terms 
        and provisions of the order;
            (2) to make regulations to effectuate the terms and 
        provisions of the order;
            (3) to appoint members of the Board to serve on an 
        executive committee;
            (4) to propose, receive, evaluate, and approve budgets, 
        plans, and projects of promotion, research, consumer 
        information, and industry information, and to contract with 
        appropriate persons to implement the plans or projects;
            (5) to accept and receive voluntary contributions, gifts, 
        and market promotion or similar funds;
            (6) to invest, pending disbursement under a plan or 
        project, funds collected through assessments authorized under 
        subsection (f), only in--
                    (A) obligations of the United States or an agency 
                of the United States;
                    (B) general obligations of a State or a political 
                subdivision of a State;
                    (C) an interest-bearing account or certificate of 
                deposit of a bank that is a member of the Federal 
                Reserve System; or
                    (D) obligations fully guaranteed as to principal 
                and interest by the United States;
            (7) to receive, investigate, and report to the Secretary 
        complaints of violations of the order; and
            (8) to recommend to the Secretary amendments to the order.
    (d) Plans and Budgets.--
            (1) In general.--The order shall provide that the Board 
        shall submit to the Secretary for approval any plan or project 
        of promotion, research, consumer information, or industry 
        information.
            (2) Budgets.--The order shall require the Board to submit 
        to the Secretary for approval budgets on a fiscal year basis of 
        the anticipated expenses and disbursements of the Board in the 
        implementation of the order, including projected costs of plans 
        and projects of promotion, research, consumer information, and 
        industry information.
    (e) Contracts and Agreements.--
            (1) In general.--The order shall provide that the Board may 
        enter into contracts or agreements for the implementation and 
        carrying out of plans or projects of promotion, research, 
        consumer information, or industry information, including 
        contracts with a processor organization, and for the payment of 
        the cost of the plans or projects with funds collected by the 
        Board under the order.
            (2) Requirements.--A contract or agreement under paragraph 
        (1) shall provide that--
                    (A) the contracting party shall develop and submit 
                to the Board a plan or project, together with a budget 
                that shows the estimated costs to be incurred for the 
                plan or project;
                    (B) the plan or project shall become effective on 
                the approval of the Secretary; and
                    (C) the contracting party shall keep accurate 
                records of each transaction of the party, account for 
                funds received and expended, make periodic reports to 
                the Board of activities conducted, and make such other 
                reports as the Board or the Secretary may require.
            (3) Processor organizations.--The order shall provide that 
        the Board may contract with processor organizations for any 
        other services. The contract shall include provisions 
        comparable to the provisions required by paragraph (2).
    (f) Assessments.--
            (1) Processors.--The order shall provide that each 
        processor marketing popcorn in the United States or for export 
        shall, in the manner prescribed in the order, pay assessments 
        and remit the assessments to the Board.
            (2) Direct marketers.--A processor that markets popcorn 
        produced by the processor directly to consumers shall pay and 
        remit the assessments on the popcorn directly to the Board in 
        the manner prescribed in the order.
            (3) Rate.--
                    (A) In general.--The rate of assessment prescribed 
                in the order shall be a rate established by the Board 
                but not more than $.08 per hundredweight of popcorn.
                    (B) Adjustment of rate.--The order shall provide 
                that the Board, with the approval of the Secretary, may 
                raise or lower the rate of assessment annually up to a 
                maximum of $.08 per hundredweight of popcorn.
            (4) Use of assessments.--
                    (A) In general.--Subject to subparagraphs (B) and 
                (C) and subsection (c)(5), the order shall provide that 
                the assessments collected shall be used by the Board--
                            (i) to pay expenses incurred in 
                        implementing and administering the order, with 
                        provision for a reasonable reserve; and
                            (ii) to cover such administrative costs as 
                        are incurred by the Secretary, except that the 
                        administrative costs incurred by the Secretary 
                        (other than any legal expenses incurred to 
                        defend and enforce the order) that may be 
                        reimbursed by the Board may not exceed 15 
                        percent of the projected annual revenues of the 
                        Board.
                    (B) Expenditures based on source of assessments.--
                In implementing plans and projects of promotion, 
                research, consumer information, and industry 
                information, the Board shall expend funds on--
                            (i) plans and projects for popcorn marketed 
                        in the United States or Canada in proportion to 
                        the amount of assessments collected on 
                        domestically marketed popcorn; and
                            (ii) plans and projects for exported 
                        popcorn in proportion to the amount of 
                        assessments collected on exported popcorn.
                    (C) Notification.--If the administrative costs 
                incurred by the Secretary that are reimbursed by the 
                Board exceed 10 percent of the projected annual 
                revenues of the Board, the Secretary shall notify as 
                soon as practicable the Committee on Agriculture of the 
                House of Representatives and the Committee on 
                Agriculture, Nutrition, and Forestry of the Senate.
    (g) Prohibition on Use of Funds.--The order shall prohibit any 
funds collected by the Board under the order from being used to 
influence government action or policy, other than the use of funds by 
the Board for the development and recommendation to the Secretary of 
amendments to the order.
    (h) Books and Records of the Board.--The order shall require the 
Board to--
            (1) maintain such books and records (which shall be 
        available to the Secretary for inspection and audit) as the 
        Secretary may prescribe;
            (2) prepare and submit to the Secretary, from time to time, 
        such reports as the Secretary may prescribe; and
            (3) account for the receipt and disbursement of all funds 
        entrusted to the Board.
    (i) Books and Records of Processors.--
            (1) Maintenance and reporting of information.--The order 
        shall require that each processor of popcorn for the market 
        shall--
                    (A) maintain, and make available for inspection, 
                such books and records as are required by the order; 
                and
                    (B) file reports at such time, in such manner, and 
                having such content as is prescribed in the order.
            (2) Use of information.--The Secretary shall authorize the 
        use of information regarding processors that may be accumulated 
        under a law or regulation other than this subtitle or a 
        regulation issued under this subtitle. The information shall be 
        made available to the Secretary as appropriate for the 
        administration or enforcement of this subtitle, the order, or 
        any regulation issued under this subtitle.
            (3) Confidentiality.--
                    (A) In general.--Subject to subparagraphs (B), (C), 
                and (D), all information obtained by the Secretary 
                under paragraphs (1) and (2) shall be kept confidential 
                by all officers, employees, and agents of the Board and 
                the Department.
                    (B) Disclosure by secretary.--Information referred 
                to in subparagraph (A) may be disclosed if--
                            (i) the Secretary considers the information 
                        relevant;
                            (ii) the information is revealed in a suit 
                        or administrative hearing brought at the 
                        request of the Secretary, or to which the 
                        Secretary or any officer of the United States 
                        is a party; and
                            (iii) the information relates to the order.
                    (C) Disclosure to other agency of federal 
                government.--
                            (i) In general.--No information obtained 
                        under the authority of this subtitle may be 
                        made available to another agency or officer of 
                        the Federal Government for any purpose other 
                        than the implementation of this subtitle and 
                        any investigatory or enforcement activity 
                        necessary for the implementation of this 
                        subtitle.
                            (ii) Penalty.--A person who knowingly 
                        violates this subparagraph shall, on 
                        conviction, be subject to a fine of not more 
                        than $1,000 or to imprisonment for not more 
                        than 1 year, or both, and if an officer, 
                        employee, or agent of the Board or the 
                        Department, shall be removed from office or 
                        terminated from employment, as applicable.
                    (D) General statements.--Nothing in this paragraph 
                prohibits--
                            (i) the issuance of general statements, 
                        based on the reports, of the number of persons 
                        subject to the order or statistical data 
                        collected from the reports, if the statements 
                        do not identify the information provided by any 
                        person; or
                            (ii) the publication, by direction of the 
                        Secretary, of the name of a person violating 
                        the order, together with a statement of the 
                        particular provisions of the order violated by 
                        the person.
    (j) Other Terms and Conditions.--The order shall contain such terms 
and conditions, consistent with this subtitle, as are necessary to 
effectuate this subtitle, including regulations relating to the 
assessment of late payment charges.

SEC. 906. REFERENDA.

    (a) Initial Referendum.--
            (1) In general.--Within the 60-day period immediately 
        preceding the effective date of an order, as provided in 
        section 904(b)(3), the Secretary shall conduct a referendum 
        among processors who, during a representative period as 
        determined by the Secretary, have been engaged in processing, 
        for the purpose of ascertaining whether the order shall go into 
        effect.
            (2) Approval of order.--The order shall become effective, 
        as provided in section 904(b), only if the Secretary determines 
        that the order has been approved by not less than a majority of 
        the processors voting in the referendum and if the majority 
        processed more than 50 percent of the popcorn certified as 
        having been processed, during the representative period, by the 
        processors voting.
    (b) Additional Referenda.--
            (1) In general.--Not earlier than 3 years after the 
        effective date of an order approved under subsection (a), on 
        the request of the Board or a representative group of 
        processors, as described in paragraph (2), the Secretary may 
        conduct additional referenda to determine whether processors 
        favor the termination or suspension of the order.
            (2) Representative group of processors.--An additional 
        referendum on an order shall be conducted if the referendum is 
        requested by 30 percent or more of the number of processors 
        who, during a representative period as determined by the 
        Secretary, have been engaged in processing.
            (3) Disapproval of order.--If the Secretary determines, in 
        a referendum conducted under paragraph (1), that suspension or 
        termination of the order is favored by at least \2/3\ of the 
        processors voting in the referendum, the Secretary shall--
                    (A) suspend or terminate, as appropriate, 
                collection of assessments under the order not later 
                than 180 days after the date of determination; and
                    (B) suspend or terminate the order, as appropriate, 
                in an orderly manner as soon as practicable after the 
                date of determination.
    (c) Costs of Referendum.--The Secretary shall be reimbursed from 
assessments collected by the Board for any expenses incurred by the 
Secretary in connection with the conduct of any referendum under this 
section.
    (d) Method of Conducting Referendum.--Subject to this section, a 
referendum conducted under this section shall be conducted in such 
manner as is determined by the Secretary.
    (e) Confidentiality of Ballots and Other Information.--
            (1) In general.--The ballots and other information or 
        reports that reveal or tend to reveal the vote of any 
        processor, or any business operation of a processor, shall be 
        considered to be strictly confidential and shall not be 
        disclosed.
            (2) Penalty for violations.--An officer or employee of the 
        Department who knowingly violates paragraph (1) shall be 
        subject to the penalties described in section 905(i)(3)(C)(ii).

SEC. 907. PETITION AND REVIEW.

    (a) Petition.--
            (1) In general.--A person subject to an order may file with 
        the Secretary a petition--
                    (A) stating that the order, a provision of the 
                order, or an obligation imposed in connection with the 
                order is not established in accordance with law; and
                    (B) requesting a modification of the order or 
                obligation or an exemption from the order or 
                obligation.
            (2) Statute of limitations.--A petition under paragraph (1) 
        concerning an obligation may be filed not later than 2 years 
        after the date of imposition of the obligation.
            (3) Hearings.--The petitioner shall be given the 
        opportunity for a hearing on a petition filed under paragraph 
        (1), in accordance with regulations issued by the Secretary.
            (4) Ruling.--After a hearing under paragraph (3), the 
        Secretary shall issue a ruling on the petition that is the 
        subject of the hearing, which shall be final if the ruling is 
        in accordance with applicable law.
    (b) Review.--
            (1) Commencement of action.--The district court of the 
        United States for any district in which a person who is a 
        petitioner under subsection (a) resides or carries on business 
        shall have jurisdiction to review a ruling on the petition, if 
        the person files a complaint not later than 20 days after the 
        date of issuance of the ruling under subsection (a)(4).
            (2) Process.--Service of process in a proceeding under 
        paragraph (1) may be made on the Secretary by delivering a copy 
        of the complaint to the Secretary.
            (3) Remands.--If the court determines, under paragraph (1), 
        that a ruling issued under subsection (a)(4) is not in 
        accordance with applicable law, the court shall remand the 
        matter to the Secretary with directions--
                    (A) to make such ruling as the court shall 
                determine to be in accordance with law; or
                    (B) to take such further proceedings as, in the 
                opinion of the court, the law requires.
    (c) Enforcement.--The pendency of proceedings instituted under 
subsection (a) may not impede, hinder, or delay the Secretary or the 
Attorney General from taking action under section 908.

SEC. 908. ENFORCEMENT.

    (a) In General.--The Secretary may issue an enforcement order to 
restrain or prevent any person from violating an order or regulation 
issued under this subtitle and may assess a civil penalty of not more 
than $1,000 for each violation of the enforcement order, after an 
opportunity for an administrative hearing, if the Secretary determines 
that the administration and enforcement of the order and this subtitle 
would be adequately served by such a procedure.
    (b) Jurisdiction.--The district courts of the United States are 
vested with jurisdiction specifically to enforce, and to prevent and 
restrain any person from violating, an order or regulation issued under 
this subtitle.
    (c) Referral to Attorney General.--A civil action authorized to be 
brought under this section shall be referred to the Attorney General 
for appropriate action.

SEC. 909. INVESTIGATIONS AND POWER TO SUBPOENA.

    (a) Investigations.--The Secretary may make such investigations as 
the Secretary considers necessary--
            (1) for the effective administration of this subtitle; and
            (2) to determine whether any person subject to this 
        subtitle has engaged, or is about to engage, in an act that 
        constitutes or will constitute a violation of this subtitle or 
        of an order or regulation issued under this subtitle.
    (b) Oaths, Affirmations, and Subpoenas.--For the purpose of an 
investigation under subsection (a), the Secretary may administer oaths 
and affirmations, subpoena witnesses, compel the attendance of 
witnesses, take evidence, and require the production of any records 
that are relevant to the inquiry. The attendance of witnesses and the 
production of records may be required from any place in the United 
States.
    (c) Aid of Courts.--
            (1) Request.--In the case of contumacy by, or refusal to 
        obey a subpoena issued to, any person, the Secretary may 
        request the aid of any court of the United States within the 
        jurisdiction of which the investigation or proceeding is 
        carried on, or where the person resides or carries on business, 
        in requiring the attendance and testimony of the person and the 
        production of records.
            (2) Enforcement order of the court.--The court may issue an 
        enforcement order requiring the person to appear before the 
        Secretary to produce records or to give testimony concerning 
        the matter under investigation.
            (3) Contempt.--A failure to obey an enforcement order of 
        the court under paragraph (2) may be punished by the court as a 
        contempt of the court.
            (4) Process.--Process in a case under this subsection may 
        be served in the judicial district in which the person resides 
        or conducts business or wherever the person may be found.

SEC. 910. RELATION TO OTHER PROGRAMS.

    Nothing in this subtitle preempts or supersedes any other program 
relating to popcorn promotion organized and operated under the laws of 
the United States or any State.

SEC. 911. REGULATIONS.

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

SEC. 912. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated such sums as are necessary 
to carry out this subtitle. Amounts made available under this section 
or otherwise made available to the Department, and amounts made 
available under any other marketing or promotion order, may not be used 
to pay any administrative expense of the Board.

                    Subtitle B--Canola and Rapeseed

SEC. 921. SHORT TITLE.

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

SEC. 922. FINDINGS AND DECLARATION OF POLICY.

    (a) Findings.--Congress finds that--
            (1) canola and rapeseed products are an important and 
        nutritious part of the human diet;
            (2) the production of canola and rapeseed products plays a 
        significant role in the economy of the United States in that 
        canola and rapeseed products are produced by thousands of 
        canola and rapeseed producers, processed by numerous processing 
        entities, and canola and rapeseed products produced in the 
        United States are consumed by people throughout the United 
        States and foreign countries;
            (3) canola, rapeseed, and canola and rapeseed products 
        should be readily available and marketed efficiently to ensure 
        that consumers have an adequate supply of canola and rapeseed 
        products at a reasonable price;
            (4) the maintenance and expansion of existing markets and 
        development of new markets for canola, rapeseed, and canola and 
        rapeseed products are vital to the welfare of canola and 
        rapeseed producers and processors and those persons concerned 
        with marketing canola, rapeseed, and canola and rapeseed 
        products, as well as to the general economy of the United 
        States, and are necessary to ensure the ready availability and 
        efficient marketing of canola, rapeseed, and canola and 
        rapeseed products;
            (5) there exist established State and national 
        organizations conducting canola and rapeseed research, 
        promotion, and consumer education programs that are valuable to 
        the efforts of promoting the consumption of canola, rapeseed, 
        and canola and rapeseed products;
            (6) the cooperative development, financing, and 
        implementation of a coordinated national program of canola and 
        rapeseed research, promotion, consumer information, and 
        industry information is necessary to maintain and expand 
        existing markets and develop new markets for canola, rapeseed, 
        and canola and rapeseed products; and
            (7) canola, rapeseed, and canola and rapeseed products move 
        in interstate and foreign commerce, and canola, rapeseed, and 
        canola and rapeseed products that do not move in interstate or 
        foreign commerce directly burden or affect interstate commerce 
        in canola, rapeseed, and canola and rapeseed products.
    (b) Policy.--It is the policy of this subtitle to establish an 
orderly procedure for developing, financing through assessments on 
domestically-produced canola and rapeseed, and implementing a program 
of research, promotion, consumer information, and industry information 
designed to strengthen the position in the marketplace of the canola 
and rapeseed industry, to maintain and expand existing domestic and 
foreign markets and uses for canola, rapeseed, and canola and rapeseed 
products, and to develop new markets and uses for canola, rapeseed, and 
canola and rapeseed products.
    (c) Construction.--Nothing in this subtitle provides for the 
control of production or otherwise limits the right of individual 
producers to produce canola, rapeseed, or canola or rapeseed products.

SEC. 923. DEFINITIONS.

    In this subtitle (unless the context otherwise requires):
            (1) Board.--The term ``Board'' means the National Canola 
        and Rapeseed Board established under section 925(b).
            (2) Canola; rapeseed.--The terms ``canola'' and 
        ``rapeseed'' means any brassica plant grown in the United 
        States for the production of an oilseed, the oil of which is 
        used for a food or nonfood use.
            (3) Canola or rapeseed products.--The term ``canola or 
        rapeseed products'' means products produced, in whole or in 
        part, from canola or rapeseed.
            (4) Commerce.--The term ``commerce'' includes interstate, 
        foreign, and intrastate commerce.
            (5) Conflict of interest.--The term ``conflict of 
        interest'' means a situation in which a member of the Board has 
        a direct or indirect financial interest in a corporation, 
        partnership, sole proprietorship, joint venture, or other 
        business entity dealing directly or indirectly with the Board.
            (6) Consumer information.--The term ``consumer 
        information'' means information that will assist consumers and 
        other persons in making evaluations and decisions regarding the 
        purchase, preparation, and use of canola, rapeseed, or canola 
        or rapeseed products.
            (7) Department.--The term ``Department'' means the 
        Department of Agriculture.
            (8) First purchaser.--The term ``first purchaser'' means--
                    (A) except as provided in subparagraph (B), a 
                person buying or otherwise acquiring canola, rapeseed, 
                or canola or rapeseed products produced by a producer; 
                or
                    (B) the Commodity Credit Corporation, in a case in 
                which canola or rapeseed is forfeited to the Commodity 
                Credit Corporation as collateral for a loan issued 
                under a price support loan program administered by the 
                Commodity Credit Corporation.
            (9) Industry information.--The term ``industry 
        information'' means information or programs that will lead to 
        the development of new markets, new marketing strategies, or 
        increased efficiency for the canola and rapeseed industry, or 
        an activity to enhance the image of the canola or rapeseed 
        industry.
            (10) Industry member.--The term ``industry member'' means a 
        member of the canola and rapeseed industry who represents--
                    (A) manufacturers of canola or rapeseed products; 
                or
                    (B) persons who commercially buy or sell canola or 
                rapeseed.
            (11) Marketing.--The term ``marketing'' means the sale or 
        other disposition of canola, rapeseed, or canola or rapeseed 
        products in a channel of commerce.
            (12) Order.--The term ``order'' means an order issued under 
        section 924.
            (13) Person.--The term ``person'' means an individual, 
        partnership, corporation, association, cooperative, or any 
        other legal entity.
            (14) Producer.--The term ``producer'' means a person 
        engaged in the growing of canola or rapeseed in the United 
        States who owns, or who shares the ownership and risk of loss 
        of, the canola or rapeseed.
            (15) Promotion.--The term ``promotion'' means an action, 
        including paid advertising, technical assistance, or trade 
        servicing activity, to enhance the image or desirability of 
        canola, rapeseed, or canola or rapeseed products in domestic 
        and foreign markets, or an activity designed to communicate to 
        consumers, processors, wholesalers, retailers, government 
        officials, or others information relating to the positive 
        attributes of canola, rapeseed, or canola or rapeseed products 
        or the benefits of use or distribution of canola, rapeseed, or 
        canola or rapeseed products.
            (16) Qualified state canola and rapeseed board.--The term 
        ``qualified State canola and rapeseed board'' means a State 
        canola and rapeseed promotion entity that is authorized and 
        functioning under State law.
            (17) Research.--The term ``research'' means any type of 
        test, study, or analysis to advance the image, desirability, 
        marketability, production, product development, quality, or 
        functional or nutritional value of canola, rapeseed, or canola 
        or rapeseed products, including research activity designed to 
        identify and analyze barriers to export sales of canola or 
        rapeseed produced in the United States.
            (18) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.
            (19) State.--The term ``State'' means any of the 50 States, 
        the District of Columbia and the Commonwealth of Puerto Rico.
            (20) United states.--The term ``United States'' means 
        collectively the 50 States, the District of Columbia, and the 
        Commonwealth of Puerto Rico.

SEC. 924. ISSUANCE AND AMENDMENT OF ORDERS.

    (a) In General.--Subject to subsection (b), the Secretary shall 
issue 1 or more orders under this subtitle applicable to producers and 
first purchasers of canola, rapeseed, or canola or rapeseed products. 
The order shall be national in scope. Not more than 1 order shall be in 
effect under this subtitle at any 1 time.
    (b) Procedure.--
            (1) Proposal or request for issuance.--The Secretary may 
        propose the issuance of an order under this subtitle, or an 
        association of canola and rapeseed producers or any other 
        person that would be affected by an order issued pursuant to 
        this subtitle may request the issuance of, and submit a 
        proposal for, an order.
            (2) Notice and comment concerning proposed order.--Not 
        later than 60 days after the receipt of a request and proposal 
        for an order pursuant to paragraph (1), or whenever the 
        Secretary determines to propose an order, the Secretary shall 
        publish a proposed order and give due notice and opportunity 
        for public comment on the proposed order.
            (3) Issuance of order.--After notice and opportunity for 
        public comment are given as provided in paragraph (2), the 
        Secretary shall issue an order, taking into consideration the 
        comments received and including in the order provisions 
        necessary to ensure that the order is in conformity with the 
        requirements of this subtitle. The order shall be issued and 
        become effective not later than 180 days following publication 
        of the proposed order.
    (c) Amendments.--The Secretary, from time to time, may amend an 
order issued under this section.

SEC. 925. REQUIRED TERMS IN ORDERS.

    (a) In General.--An order issued under this subtitle shall contain 
the terms and conditions specified in this section.
    (b) Establishment and Membership of the National Canola and 
Rapeseed Board.--
            (1) In general.--The order shall provide for the 
        establishment of, and appointment of members to, a National 
        Canola and Rapeseed Board to administer the order.
            (2) Service to entire industry.--The Board shall carry out 
        programs and projects that will provide maximum benefit to the 
        canola and rapeseed industry in all parts of the United States 
        and only promote canola, rapeseed, or canola or rapeseed 
        products.
            (3) Board membership.--The Board shall consist of 15 
        members, including--
                    (A) 11 members who are producers, including--
                            (i) 1 member from each of 6 geographic 
                        regions comprised of States where canola or 
                        rapeseed is produced, as determined by the 
                        Secretary; and
                            (ii) 5 members from the geographic regions 
                        referred to in clause (i), allocated according 
                        to the production in each region; and
                    (B) 4 members who are industry members, including 
                at least--
                            (i) 1 member who represents manufacturers 
                        of canola or rapeseed end products; and
                            (ii) 1 member who represents persons who 
                        commercially buy or sell canola or rapeseed.
            (4) Limitation on state residence.--There shall be no more 
        than 4 producer members of the Board from any State.
            (5) Modifying board membership.--In accordance with 
        regulations approved by the Secretary, at least once each 3 
        years and not more than once each 2 years, the Board shall 
        review the geographic distribution of canola and rapeseed 
        production throughout the United States and, if warranted, 
        recommend to the Secretary that the Secretary--
                    (A) reapportion regions in order to reflect the 
                geographic distribution of canola and rapeseed 
                production; and
                    (B) reapportion the seats on the Board to reflect 
                the production in each region.
            (6) Certification of organizations.--
                    (A) In general.--The eligibility of any State 
                organization to represent producers shall be certified 
                by the Secretary.
                    (B) Criteria.--The Secretary shall certify any 
                State organization that the Secretary determines has a 
                history of stability and permanency and meets at least 
                1 of the following criteria:
                            (i) Majority representation.--The total 
                        paid membership of the organization--
                                    (I) is comprised of at least a 
                                majority of canola or rapeseed 
                                producers; or
                                    (II) represents at least a majority 
                                of the canola or rapeseed producers in 
                                the State.
                            (ii) Substantial number of producers 
                        represented.--The organization represents a 
                        substantial number of producers that produce a 
                        substantial quantity of canola or rapeseed in 
                        the State.
                            (iii) Purpose.--The organization is a 
                        general farm or agricultural organization that 
                        has as a stated objective the promotion and 
                        development of the United States canola or 
                        rapeseed industry and the economic welfare of 
                        United States canola or rapeseed producers.
                    (C) Report.--The Secretary shall make a 
                certification under this paragraph on the basis of a 
                factual report submitted by the State organization.
            (7) Terms of office.--
                    (A) In general.--The members of the Board shall 
                serve for a term of 3 years, except that the members 
                appointed to the initial Board shall serve, 
                proportionately, for terms of 1, 2, and 3 years, as 
                determined by the Secretary.
                    (B) Termination of terms.--Notwithstanding 
                subparagraph (C), each member shall continue to serve 
                until a successor is appointed by the Secretary.
                    (C) Limitation on terms.--No individual may serve 
                more than 2 consecutive 3-year terms as a member.
            (8) Compensation.--A member of the Board shall serve 
        without compensation, but shall be reimbursed for necessary and 
        reasonable expenses incurred in the performance of duties for 
        and approved by the Board.
    (c) Powers and Duties of the Board.--The order shall define the 
powers and duties of the Board, which shall include the power and 
duty--
            (1) to administer the order in accordance with the terms 
        and conditions of the order;
            (2) to make regulations to effectuate the terms and 
        conditions of the order;
            (3) to meet, organize, and select from among members of the 
        Board a chairperson, other officers, and committees and 
        subcommittees, as the Board determines appropriate;
            (4) to establish working committees of persons other than 
        Board members;
            (5) to employ such persons, other than Board members, as 
        the Board considers necessary, and to determine the 
        compensation and define the duties of the persons;
            (6) to prepare and submit for the approval of the 
        Secretary, when appropriate or necessary, a recommended rate of 
        assessment under section 926, and a fiscal period budget of the 
        anticipated expenses in the administration of the order, 
        including the probable costs of all programs and projects;
            (7) to develop programs and projects, subject to subsection 
        (d);
            (8) to enter into contracts or agreements, subject to 
        subsection (e), to develop and carry out programs or projects 
        of research, promotion, industry information, and consumer 
        information;
            (9) to carry out research, promotion, industry information, 
        and consumer information projects, and to pay the costs of the 
        projects with assessments collected under section 926;
            (10) to keep minutes, books, and records that reflect the 
        actions and transactions of the Board, and promptly report 
        minutes of each Board meeting to the Secretary;
            (11) to appoint and convene, from time to time, working 
        committees comprised of producers, industry members, and the 
        public to assist in the development of research, promotion, 
        industry information, and consumer information programs for 
        canola, rapeseed, and canola and rapeseed products;
            (12) to invest, pending disbursement under a program or 
        project, funds collected through assessments authorized under 
        section 926, or funds earned from investments, only in--
                    (A) obligations of the United States or an agency 
                of the United States;
                    (B) general obligations of a State or a political 
                subdivision of a State;
                    (C) an interest-bearing account or certificate of 
                deposit of a bank that is a member of the Federal 
                Reserve System; or
                    (D) obligations fully guaranteed as to principal 
                and interest by the United States;
            (13) to receive, investigate, and report to the Secretary 
        complaints of violations of the order;
            (14) to furnish the Secretary with such information as the 
        Secretary may request;
            (15) to recommend to the Secretary amendments to the order;
            (16) to develop and recommend to the Secretary for approval 
        such regulations as may be necessary for the development and 
        execution of programs or projects, or as may otherwise be 
        necessary, to carry out the order; and
            (17) to provide the Secretary with advance notice of 
        meetings.
    (d) Programs and Budgets.--
            (1) Submission to secretary.--The order shall provide that 
        the Board shall submit to the Secretary for approval any 
        program or project of research, promotion, consumer 
        information, or industry information. No program or project 
        shall be implemented prior to approval by the Secretary.
            (2) Budgets.--The order shall require the Board, prior to 
        the beginning of each fiscal year, or as may be necessary after 
        the beginning of a fiscal year, to submit to the Secretary for 
        approval budgets of anticipated expenses and disbursements in 
        the implementation of the order, including projected costs of 
        research, promotion, consumer information, and industry 
        information programs and projects.
            (3) Incurring expenses.--The Board may incur such expenses 
        for programs or projects of research, promotion, consumer 
        information, or industry information, and other expenses for 
        the administration, maintenance, and functioning of the Board 
        as may be authorized by the Secretary, including any 
        implementation, administrative, and referendum costs incurred 
        by the Department.
            (4) Paying expenses.--The funds to cover the expenses 
        referred to in paragraph (3) shall be paid by the Board from 
        assessments collected under section 926 or funds borrowed 
        pursuant to paragraph (5).
            (5) Authority to borrow.--To meet the expenses referred to 
        in paragraph (3), the Board shall have the authority to borrow 
        funds, as approved by the Secretary, for capital outlays and 
        startup costs.
    (e) Contracts and Agreements.--
            (1) In general.--To ensure efficient use of funds, the 
        order shall provide that the Board may enter into a contract or 
        agreement for the implementation and carrying out of a program 
        or project of canola, rapeseed, or canola or rapeseed products 
        research, promotion, consumer information, or industry 
        information, including a contract with a producer organization, 
        and for the payment of the costs with funds received by the 
        Board under the order.
            (2) Requirements.--A contract or agreement under paragraph 
        (1) shall provide that--
                    (A) the contracting party shall develop and submit 
                to the Board a program or project together with a 
                budget that shall show the estimated costs to be 
                incurred for the program or project;
                    (B) the program or project shall become effective 
                on the approval of the Secretary; and
                    (C) the contracting party shall keep accurate 
                records of all transactions, account for funds received 
                and expended, make periodic reports to the Board of 
                activities conducted, and make such other reports as 
                the Board or the Secretary may require.
            (3) Producer organizations.--The order shall provide that 
        the Board may contract with producer organizations for any 
        other services. The contract shall include provisions 
        comparable to those required by paragraph (2).
    (f) Books and Records of the Board.--
            (1) In general.--The order shall require the Board to--
                    (A) maintain such books and records (which shall be 
                available to the Secretary for inspection and audit) as 
                the Secretary may prescribe;
                    (B) prepare and submit to the Secretary, from time 
                to time, such reports as the Secretary may prescribe; 
                and
                    (C) account for the receipt and disbursement of all 
                funds entrusted to the Board.
            (2) Audits.--The Board shall cause the books and records of 
        the Board to be audited by an independent auditor at the end of 
        each fiscal year, and a report of the audit to be submitted to 
        the Secretary.
    (g) Prohibition.--
            (1) In general.--Subject to paragraph (2), the Board shall 
        not engage in any action to, nor shall any funds received by 
        the Board under this subtitle be used to--
                    (A) influence legislation or governmental action;
                    (B) engage in an action that would be a conflict of 
                interest;
                    (C) engage in advertising that is false or 
                misleading; or
                    (D) engage in promotion that would disparage other 
                commodities.
            (2) Action permitted.--Paragraph (1) does not preclude--
                    (A) the development and recommendation of 
                amendments to the order;
                    (B) the communication to appropriate government 
                officials of information relating to the conduct, 
                implementation, or results of promotion, research, 
                consumer information, or industry information 
                activities under the order; or
                    (C) any action designed to market canola or 
                rapeseed products directly to a foreign government or 
                political subdivision of a foreign government.
    (h) Books and Records.--
            (1) In general.--The order shall require that each 
        producer, first purchaser, or industry member shall--
                    (A) maintain and submit to the Board any reports 
                considered necessary by the Secretary to ensure 
                compliance with this subtitle; and
                    (B) make available during normal business hours, 
                for inspection by employees of the Board or Secretary, 
                such books and records as are necessary to carry out 
                this subtitle, including such records as are necessary 
                to verify any required reports.
            (2) Confidentiality.--
                    (A) In general.--Except as otherwise provided in 
                this subtitle, all information obtained from books, 
                records, or reports required to be maintained under 
                paragraph (1) shall be kept confidential, and shall not 
                be disclosed to the public by any person.
                    (B) Disclosure.--Information referred to in 
                subparagraph (A) may be disclosed to the public if--
                            (i) the Secretary considers the information 
                        relevant;
                            (ii) the information is revealed in a suit 
                        or administrative hearing brought at the 
                        direction or on the request of the Secretary or 
                        to which the Secretary or any officer of the 
                        Department is a party; and
                            (iii) the information relates to this 
                        subtitle.
                    (C) Misconduct.--A knowing disclosure of 
                confidential information in violation of subparagraph 
                (A) by an officer or employee of the Board or 
                Department, except as required by other law or allowed 
                under subparagraph (B) or (D), shall be considered a 
                violation of this subtitle.
                    (D) General statements.--Nothing in this paragraph 
                prohibits--
                            (i) the issuance of general statements, 
                        based on the reports, of the number of persons 
                        subject to the order or statistical data 
                        collected from the reports, if the statements 
                        do not identify the information furnished by 
                        any person; or
                            (ii) the publication, by direction of the 
                        Secretary, of the name of a person violating 
                        the order, together with a statement of the 
                        particular provisions of the order violated by 
                        the person.
            (3) Availability of information.--
                    (A) Exception.--Except as provided in this 
                subtitle, information obtained under this subtitle may 
                be made available to another agency of the Federal 
                Government for a civil or criminal law enforcement 
                activity if the activity is authorized by law and if 
                the head of the agency has made a written request to 
                the Secretary specifying the particular information 
                desired and the law enforcement activity for which the 
                information is sought.
                    (B) Penalty.--Any person knowingly violating this 
                subsection, on conviction, shall be subject to a fine 
                of not more than $1,000 or to imprisonment for not more 
                than 1 year, or both, and if an officer or employee of 
                the Board or the Department, shall be removed from 
                office or terminated from employment, as applicable.
            (5) Withholding information.--Nothing in this subtitle 
        authorizes withholding information from Congress.
    (i) Use of Assessments.--The order shall provide that the 
assessments collected under section 926 shall be used for payment of 
the expenses in implementing and administering this subtitle, with 
provision for a reasonable reserve, and to cover those administrative 
costs incurred by the Secretary in implementing and administering this 
subtitle.
    (j) Other Terms and Conditions.--The order also shall contain such 
terms and conditions, not inconsistent with this subtitle, as 
determined necessary by the Secretary to effectuate this subtitle.

SEC. 926. ASSESSMENTS.

    (a) In General.--
            (1) First purchasers.--During the effective period of an 
        order issued pursuant to this subtitle, assessments shall be--
                    (A) levied on all canola or rapeseed produced in 
                the United States and marketed; and
                    (B) deducted from the payment made to a producer 
                for all canola or rapeseed sold to a first purchaser.
            (2) Direct processing.--The order shall provide that any 
        person processing canola or rapeseed of that person's own 
        production and marketing the canola or rapeseed, or canola or 
        rapeseed products, shall remit to the Board or a qualified 
        State canola and rapeseed board, in the manner prescribed by 
        the order, an assessment established at a rate equivalent to 
        the rate provided for under subsection (d).
    (b) Limitation on Assessments.--No more than 1 assessment may be 
assessed under subsection (a) on any canola or rapeseed produced (as 
remitted by a first purchaser).
    (c) Remitting Assessments.--
            (1) In general.--Assessments required under subsection (a) 
        shall be remitted to the Board by a first purchaser. The Board 
        shall use qualified State canola and rapeseed boards to collect 
        the assessments. If an appropriate qualified State canola and 
        rapeseed board does not exist to collect an assessment, the 
        assessment shall be collected by the Board. There shall be only 
        1 qualified State canola or rapeseed Board in each State.
            (2) Times to remit assessment.--Each first purchaser shall 
        remit the assessment to the Board as provided for in the order.
    (d) Assessment Rate.--
            (1) Initial rate.--The initial assessment rate shall be 4 
        cents per hundredweight of canola or rapeseed produced and 
        marketed.
            (2) Increase.--The assessment rate may be increased on 
        recommendation by the Board to a rate not exceeding 10 cents 
        per hundredweight of canola or rapeseed produced and marketed 
        in a State, unless--
                    (A) after the initial referendum is held under 
                section 927(a), the Board recommends an increase above 
                10 cents per hundredweight; and
                    (B) the increase is approved in a referendum under 
                section 927(b).
            (3) Credit.--A producer who demonstrates to the Board that 
        the producer is participating in a program of an established 
        qualified State canola and rapeseed board shall receive credit, 
        in determining the assessment due from the producer, for 
        contributions to the program of up to 2 cents per hundredweight 
        of canola or rapeseed marketed.
    (e) Late Payment Charge.--
            (1) In general.--There shall be a late payment charge 
        imposed on any person who fails to remit, on or before the date 
        provided for in the order, to the Board the total amount for 
        which the person is liable.
            (2) Amount of charge.--The amount of the late payment 
        charge imposed under paragraph (1) shall be prescribed by the 
        Board with the approval of the Secretary.
    (f) Refund of Assessments From Escrow Account.--
            (1) Establishment of escrow account.--During the period 
        beginning on the date on which an order is first issued under 
        section 924(b)(3) and ending on the date on which a referendum 
        is conducted under section 927(a), the Board shall--
                    (A) establish an escrow account to be used for 
                assessment refunds; and
                    (B) place funds in such account in accordance with 
                paragraph (2).
            (2) Placement of funds in account.--The Board shall place 
        in such account, from assessments collected during the period 
        referred to in paragraph (1), an amount equal to the product 
        obtained by multiplying the total amount of assessments 
        collected during the period by 10 percent.
            (3) Right to receive refund.--The Board shall refund to a 
        producer the assessments paid by or on behalf of the producer 
        if--
                    (A) the producer is required to pay the assessment;
                    (B) the producer does not support the program 
                established under this subtitle; and
                    (C) the producer demands the refund prior to the 
                conduct of the referendum under section 927(a).
            (4) Form of demand.--The demand shall be made in accordance 
        with such regulations, in such form, and within such time 
        period as prescribed by the Board.
            (5) Making of refund.--The refund shall be made on 
        submission of proof satisfactory to the Board that the producer 
        paid the assessment for which the refund is demanded.
            (6) Proration.--If--
                    (A) the amount in the escrow account required by 
                paragraph (1) is not sufficient to refund the total 
                amount of assessments demanded by eligible producers; 
                and
                    (B) the order is not approved pursuant to the 
                referendum conducted under section 927(a);
        the Board shall prorate the amount of the refunds among all 
        eligible producers who demand a refund.
            (7) Program approved.--If the plan is approved pursuant to 
        the referendum conducted under section 927(a), all funds in the 
        escrow account shall be returned to the Board for use by the 
        Board in accordance with this subtitle.

SEC. 927. REFERENDA.

    (a) Initial Referendum.--
            (1) Requirement.--During the period ending 30 months after 
        the date of the first issuance of an order under section 924, 
        the Secretary shall conduct a referendum among producers who, 
        during a representative period as determined by the Secretary, 
        have been engaged in the production of canola or rapeseed for 
        the purpose of ascertaining whether the order then in effect 
        shall be continued.
            (2) Advance notice.--The Secretary shall, to the extent 
        practicable, provide broad public notice in advance of any 
        referendum. The notice shall be provided, without advertising 
        expenses, by means of newspapers, county newsletters, the 
        electronic media, and press releases, through the use of 
        notices posted in State and county Cooperative State Research, 
        Education, and Extension Service offices and county 
        Consolidated Farm Service Agency offices, and by other 
        appropriate means specified in the order. The notice shall 
        include information on when the referendum will be held, 
        registration and voting requirements, rules regarding absentee 
        voting, and other pertinent information.
            (3) Approval of order.--The order shall be continued only 
        if the Secretary determines that the order has been approved by 
        not less than a majority of the producers voting in the 
        referendum.
            (4) Disapproval of order.--If continuation of the order is 
        not approved by a majority of those voting in the referendum, 
        the Secretary shall terminate collection of assessments under 
        the order within 6 months after the referendum and shall 
        terminate the order in an orderly manner as soon as 
        practicable.
    (b) Additional Referenda.--
            (1) In general.--
                    (A) Requirement.--After the initial referendum on 
                an order, the Secretary shall conduct additional 
                referenda, as described in subparagraph (C), if 
                requested by a representative group of producers, as 
                described in subparagraph (B).
                    (B) Representative group of producers.--An 
                additional referendum on an order shall be conducted if 
                requested by 10 percent or more of the producers who 
                during a representative period have been engaged in the 
                production of canola or rapeseed.
                    (C) Eligible producers.--Each additional referendum 
                shall be conducted among all producers who, during a 
                representative period, as determined by the Secretary, 
                have been engaged in the production of canola or 
                rapeseed to determine whether the producers favor the 
                termination or suspension of the order.
            (2) Disapproval of order.--If the Secretary determines, in 
        a referendum conducted under paragraph (1), that suspension or 
        termination of the order is favored by a majority of the 
        producers voting in the referendum, the Secretary shall suspend 
        or terminate, as appropriate, collection of assessments under 
        the order within 6 months after the determination, and shall 
        suspend or terminate the order, as appropriate, in an orderly 
        manner as soon as practicable after the determination.
            (3) Opportunity to request additional referenda.--
                    (A) In general.--Beginning on the date that is 5 
                years after the conduct of a referendum under this 
                subtitle, and every 5 years thereafter, the Secretary 
                shall provide canola and rapeseed producers an 
                opportunity to request an additional referendum.
                    (B) Method of making request.--
                            (i) In-person requests.--To carry out 
                        subparagraph (A), the Secretary shall establish 
                        a procedure under which a producer may request 
                        a reconfirmation referendum in-person at a 
                        county Cooperative State Research, Education, 
                        and Extension Service office or a county 
                        Consolidated Farm Service Agency office during 
                        a period established by the Secretary, or as 
                        provided in clause (ii).
                            (ii) Mail-in requests.--In lieu of making a 
                        request in person, a producer may make a 
                        request by mail. To facilitate the submission 
                        of requests by mail, the Secretary may make 
                        mail-in request forms available to producers.
                    (C) Notifications.--The Secretary shall publish a 
                notice in the Federal Register, and the Board shall 
                provide written notification to producers, not later 
                than 60 days prior to the end of the period established 
                under subparagraph (B)(i) for an in-person request, of 
                the opportunity of producers to request an additional 
                referendum. The notification shall explain the right of 
                producers to an additional referendum, the procedure 
                for a referendum, the purpose of a referendum, and the 
                date and method by which producers may act to request 
                an additional referendum under this paragraph. The 
                Secretary shall take such other action as the Secretary 
                determines is necessary to ensure that producers are 
                made aware of the opportunity to request an additional 
                referendum.
                    (D) Action by secretary.--As soon as practicable 
                following the submission of a request for an additional 
                referendum, the Secretary shall determine whether a 
                sufficient number of producers have requested the 
                referendum, and take such steps as are necessary to 
                conduct the referendum, as required under paragraph 
                (1).
                    (E) Time limit.--An additional referendum requested 
                under the procedures provided in this paragraph shall 
                be conducted not later than 1 year after the Secretary 
                determines that a representative group of producers, as 
                described in paragraph (1)(B), have requested the 
                conduct of the referendum.
    (c) Procedures.--
            (1) Reimbursement of secretary.--The Secretary shall be 
        reimbursed from assessments collected by the Board for any 
        expenses incurred by the Secretary in connection with the 
        conduct of an activity required under this section.
            (2) Date.--Each referendum shall be conducted for a 
        reasonable period of time not to exceed 3 days, established by 
        the Secretary, under a procedure under which producers 
        intending to vote in the referendum shall certify that the 
        producers were engaged in the production of canola, rapeseed, 
        or canola or rapeseed products during the representative period 
        and, at the same time, shall be provided an opportunity to vote 
        in the referendum.
            (3) Place.--Referenda under this section shall be conducted 
        at locations determined by the Secretary. On request, absentee 
        mail ballots shall be furnished by the Secretary in a manner 
        prescribed by the Secretary.

SEC. 928. PETITION AND REVIEW.

    (a) Petition.--
            (1) In general.--A person subject to an order issued under 
        this subtitle may file with the Secretary a petition--
                    (A) stating that the order, a provision of the 
                order, or an obligation imposed in connection with the 
                order is not established in accordance with law; and
                    (B) requesting a modification of the order or an 
                exemption from the order.
            (2) Hearings.--The petitioner shall be given the 
        opportunity for a hearing on a petition filed under paragraph 
        (1), in accordance with regulations issued by the Secretary.
            (3) Ruling.--After a hearing under paragraph (2), the 
        Secretary shall make a ruling on the petition that is the 
        subject of the hearing, which shall be final if the ruling is 
        in accordance with applicable law.
            (4) Limitation on petition.--Any petition filed under this 
        subtitle challenging an order, or any obligation imposed in 
        connected with an order, shall be filed not later than 2 years 
        after the effective date of the order or obligation.
    (b) Review.--
            (1) Commencement of action.--The district court of the 
        United States in any district in which the person who is a 
        petitioner under subsection (a) resides or carries on business 
        shall have jurisdiction to review a ruling on the petition, if 
        a complaint is filed by the person not later than 20 days after 
        the date of the entry of a ruling by the Secretary under 
        subsection (a)(3).
            (2) Process.--Service of process in a proceeding under 
        paragraph (1) shall be conducted in accordance with the Federal 
        Rules of Civil Procedure.
            (3) Remands.--If the court determines, under paragraph (1), 
        that a ruling issued under subsection (a)(3) is not in 
        accordance with applicable law, the court shall remand the 
        matter to the Secretary with directions either--
                    (A) to make such ruling as the court shall 
                determine to be in accordance with law; or
                    (B) to take such further proceedings as, in the 
                opinion of the court, the law requires.
            (4) Enforcement.--The pendency of proceedings instituted 
        under subsection (a) shall not impede, hinder, or delay the 
        Attorney General or the Secretary from taking any action under 
        section 929.

SEC. 929. ENFORCEMENT.

    (a) Jurisdiction.--The district courts of the United States are 
vested with jurisdiction specifically to enforce, and to prevent and 
restrain any person from violating, an order or regulation made or 
issued under this subtitle.
    (b) Referral to Attorney General.--A civil action authorized to be 
commenced under this section shall be referred to the Attorney General 
for appropriate action, except that the Secretary shall not be required 
to refer to the Attorney General a violation of this subtitle if the 
Secretary believes that the administration and enforcement of this 
subtitle would be adequately served by providing a suitable written 
notice or warning to the person who committed the violation or by 
administrative action under section 928.
    (c) Civil Penalties and Orders.--
            (1) Civil penalties.--
                    (A) In general.--Any person who willfully violates 
                any provision of an order or regulation issued by the 
                Secretary under this subtitle, or who fails or refuses 
                to pay, collect, or remit an assessment or fee required 
                of the person under an order or regulation, may be 
                assessed--
                            (i) a civil penalty by the Secretary of not 
                        more than $1,000 for each violation; and
                            (ii) in the case of a willful failure to 
                        pay, collect, or remit an assessment as 
                        required by an order or regulation, an 
                        additional penalty equal to the amount of the 
                        assessment.
                    (B) Separate offense.--Each violation under 
                subparagraph (A) shall be a separate offense.
            (2) Cease-and-desist orders.--In addition to, or in lieu 
        of, a civil penalty under paragraph (1), the Secretary may 
        issue an order requiring a person to cease and desist from 
        continuing a violation.
            (3) Notice and hearing.--No penalty shall be assessed, or 
        cease-and-desist order issued, by the Secretary under this 
        subsection unless the person against whom the penalty is 
        assessed or the order is issued is given notice and opportunity 
        for a hearing before the Secretary with respect to the 
        violation.
            (4) Finality.--The order of the Secretary assessing a 
        penalty or imposing a cease-and-desist order under this 
        subsection shall be final and conclusive unless the affected 
        person files an appeal of the order with the appropriate 
        district court of the United States in accordance with 
        subsection (d).
    (d) Review by District Court.--
            (1) Commencement of action.--Any person who has been 
        determined to be in violation of this subtitle, or against whom 
        a civil penalty has been assessed or a cease-and-desist order 
        issued under subsection (c), may obtain review of the penalty 
        or order by--
                    (A) filing, within the 30-day period beginning on 
                the date the penalty is assessed or order issued, a 
                notice of appeal in--
                            (i) the district court of the United States 
                        for the district in which the person resides or 
                        conducts business; or
                            (ii) the United States District Court for 
                        the District of Columbia; and
                    (B) simultaneously sending a copy of the notice by 
                certified mail to the Secretary.
            (2) Record.--The Secretary shall file promptly, in the 
        appropriate court referred to in paragraph (1), a certified 
        copy of the record on which the Secretary has determined that 
        the person has committed a violation.
            (3) Standard of review.--A finding of the Secretary under 
        this section shall be set aside only if the finding is found to 
        be unsupported by substantial evidence.
    (e) Failure To Obey Orders.--Any person who fails to obey a cease-
and-desist order issued under this section after the order has become 
final and unappealable, or after the appropriate United States district 
court has entered a final judgment in favor of the Secretary, shall be 
subject to a civil penalty assessed by the Secretary, after opportunity 
for a hearing and for judicial review under the procedures specified in 
subsections (c) and (d), of not more than $5,000 for each offense. Each 
day during which the failure continues shall be considered as a 
separate violation of the order.
    (f) Failure To Pay Penalties.--If a person fails to pay an 
assessment of a civil penalty under this section after the assessment 
has become a final and unappealable order, or after the appropriate 
United States district court has entered final judgment in favor of the 
Secretary, the Secretary shall refer the matter to the Attorney General 
for recovery of the amount assessed in the district court in which the 
person resides or conducts business. In an action for recovery, the 
validity and appropriateness of the final order imposing the civil 
penalty shall not be subject to review.
    (g) Additional Remedies.--The remedies provided in this subtitle 
shall be in addition to, and not exclusive of, other remedies that may 
be available.

SEC. 930. INVESTIGATIONS AND POWER TO SUBPOENA.

    (a) Investigations.--The Secretary may make such investigations as 
the Secretary considers necessary--
            (1) for the effective administration of this subtitle; and
            (2) to determine whether any person has engaged or is 
        engaging in an act that constitutes a violation of this 
        subtitle, or an order, rule, or regulation issued under this 
        subtitle.
    (b) Subpoenas, Oaths, and Affirmations.--
            (1) In general.--For the purpose of an investigation under 
        subsection (a), the Secretary may administer oaths and 
        affirmations, subpoena witnesses, take evidence, and issue 
        subpoenas to require the production of any records that are 
        relevant to the inquiry. The attendance of witnesses and the 
        production of records may be required from any place in the 
        United States.
            (2) Administrative hearings.--For the purpose of an 
        administrative hearing held under section 928 or 929, the 
        presiding officer is authorized to administer oaths and 
        affirmations, subpoena and compel the attendance of witnesses, 
        take evidence, and require the production of any records that 
        are relevant to the inquiry. The attendance of witnesses and 
        the production of records may be required from any place in the 
        United States.
    (c) Aid of Courts.--In the case of contumacy by, or refusal to obey 
a subpoena issued to, any person, the Secretary may invoke the aid of 
any court of the United States within the jurisdiction of which the 
investigation or proceeding is carried on, or where the person resides 
or carries on business, in order to enforce a subpoena issued by the 
Secretary under subsection (b). The court may issue an order requiring 
the person to comply with the subpoena.
    (d) Contempt.--A failure to obey an order of the court under this 
section may be punished by the court as contempt of the court.
    (e) Process.--Process may be served on a person in the judicial 
district in which the person resides or conducts business or wherever 
the person may be found.
    (f) Hearing Site.--The site of a hearing held under section 928 or 
729 shall be in the judicial district where the person affected by the 
hearing resides or has a principal place of business.

SEC. 931. SUSPENSION OR TERMINATION OF AN ORDER.

    The Secretary shall, whenever the Secretary finds that an order or 
a provision of an order obstructs or does not tend to effectuate the 
declared policy of this subtitle, terminate or suspend the operation of 
the order or provision. The termination or suspension of an order shall 
not be considered an order within the meaning of this subtitle.

SEC. 932. REGULATIONS.

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

SEC. 933. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There are authorized to be appropriated for each 
fiscal year such sums as are necessary to carry out this subtitle.
    (b) Administrative Expenses.--Funds appropriated under subsection 
(a) shall not be available for payment of the expenses or expenditures 
of the Board in administering a provision of an order issued under this 
subtitle.

                         Subtitle C--Kiwifruit

SEC. 941. SHORT TITLE.

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

SEC. 942. FINDINGS AND PURPOSES.

    (a) Findings.--Congress finds that--
            (1) domestically produced kiwifruit are grown by many 
        individual producers;
            (2) virtually all domestically produced kiwifruit are grown 
        in the State of California, although there is potential for 
        production in many other areas of the United States;
            (3) kiwifruit move in interstate and foreign commerce, and 
        kiwifruit that do not move in channels of commerce directly 
        burden or affect interstate commerce;
            (4) in recent years, large quantities of kiwifruit have 
        been imported into the United States;
            (5) the maintenance and expansion of existing domestic and 
        foreign markets for kiwifruit, and the development of 
        additional and improved markets for kiwifruit, are vital to the 
        welfare of kiwifruit producers and other persons concerned with 
        producing, marketing, and processing kiwifruit;
            (6) a coordinated program of research, promotion, and 
        consumer information regarding kiwifruit is necessary for the 
        maintenance and development of the markets; and
            (7) kiwifruit producers, handlers, and importers are unable 
        to implement and finance such a program without cooperative 
        action.
    (b) Purposes.--The purposes of this subtitle are--
            (1) to authorize the establishment of an orderly procedure 
        for the development and financing (through an assessment) of an 
        effective and coordinated program of research, promotion, and 
        consumer information regarding kiwifruit;
            (2) to use the program to strengthen the position of the 
        kiwifruit industry in domestic and foreign markets and 
        maintain, develop, and expand markets for kiwifruit; and
            (3) to treat domestically produced kiwifruit and imported 
        kiwifruit equitably.

SEC. 943. DEFINITIONS.

    In this subtitle (unless the context otherwise requires):
            (1) Board.--The term ``Board'' means the National Kiwifruit 
        Board established under section 945.
            (2) Consumer information.--The term ``consumer 
        information'' means any action taken to provide information to, 
        and broaden the understanding of, the general public regarding 
        the consumption, use, nutritional attributes, and care of 
        kiwifruit.
            (3) Exporter.--The term ``exporter'' means any person from 
        outside the United States who exports kiwifruit into the United 
        States.
            (4) Handler.--The term ``handler'' means any person, 
        excluding a common carrier, engaged in the business of buying 
        and selling, packing, marketing, or distributing kiwifruit as 
        specified in the order.
            (5) Importer.--The term ``importer'' means any person who 
        imports kiwifruit into the United States.
            (6) Kiwifruit.--The term ``kiwifruit'' means all varieties 
        of fresh kiwifruit grown or imported in the United States.
            (7) Marketing.--The term ``marketing'' means the sale or 
        other disposition of kiwifruit into interstate, foreign, or 
        intrastate commerce by buying, marketing, distribution, or 
        otherwise placing kiwifruit into commerce.
            (8) Order.--The term ``order'' means a kiwifruit research, 
        promotion, and consumer information order issued by the 
        Secretary under section 944.
            (9) Person.--The term ``person'' means any individual, 
        group of individuals, partnership, corporation, association, 
        cooperative, or other legal entity.
            (10) Processing.--The term ``processing'' means canning, 
        fermenting, distilling, extracting, preserving, grinding, 
        crushing, or in any manner changing the form of kiwifruit for 
        the purposes of preparing the kiwifruit for market or marketing 
        the kiwifruit.
            (11) Producer.--The term ``producer'' means any person who 
        grows kiwifruit in the United States for sale in commerce.
            (12) Promotion.--The term ``promotion'' means any action 
        taken under this subtitle (including paid advertising) to 
        present a favorable image for kiwifruit to the general public 
        for the purpose of improving the competitive position of 
        kiwifruit and stimulating the sale of kiwifruit.
            (13) Research.--The term ``research'' means any type of 
        research relating to the use, nutritional value, and marketing 
        of kiwifruit conducted for the purpose of advancing the image, 
        desirability, marketability, or quality of kiwifruit.
            (14) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.
            (15) United states.--The term ``United States'' means the 
        50 States of the United States, the District of Columbia, and 
        the Commonwealth of Puerto Rico.

SEC. 944. ISSUANCE OF ORDERS.

    (a) Issuance.--To effectuate the declared purposes of this 
subtitle, the Secretary shall issue an order applicable to producers, 
handlers, and importers of kiwifruit. Any such order shall be national 
in scope. Not more than 1 order shall be in effect under this subtitle 
at any 1 time.
    (b) Procedure.--
            (1) Proposal for issuance of order.--Any person that will 
        be affected by this subtitle may request the issuance of, and 
        submit a proposal for, an order under this subtitle.
            (2) Proposed order.--Not later than 90 days after the 
        receipt of a request and proposal for an order, the Secretary 
        shall publish a proposed order and give due notice and 
        opportunity for public comment on the proposed order.
            (3) Issuance of order.--After notice and opportunity for 
        public comment are provided under paragraph (2), the Secretary 
        shall issue an order, taking into consideration the comments 
        received and including in the order provisions necessary to 
        ensure that the order is in conformity with this subtitle.
    (c) Amendments.--The Secretary may amend any order issued under 
this section. The provisions of this subtitle applicable to an order 
shall be applicable to an amendment to an order.

SEC. 945. NATIONAL KIWIFRUIT BOARD.

    (a) Membership.--An order issued by the Secretary under section 944 
shall provide for the establishment of a National Kiwifruit Board that 
consists of the following 11 members:
            (1) 6 members who are producers (or representatives of 
        producers) and who are not exempt from an assessment under 
        section 946(b).
            (2) 4 members who are importers (or representatives of 
        importers) and who are not exempt from an assessment under 
        section 946(b) or are exporters (or representatives of 
        exporters).
            (3) 1 member appointed from the general public.
    (b) Adjustment of Membership.--Subject to the 11-member limit, the 
Secretary may adjust membership on the Board to accommodate changes in 
production and import levels of kiwifruit.
    (c) Appointment and Nomination.--
            (1) Appointment.--The Secretary shall appoint the members 
        of the Board from nominations submitted in accordance with this 
        subsection.
            (2) Producers.--The members referred to in subsection 
        (a)(1) shall be appointed from individuals nominated by 
        producers.
            (3) Importers and exporters.--The members referred to in 
        subsection (a)(2) shall be appointed from individuals nominated 
        by importers or exporters.
            (4) Public representative.--The public representative shall 
        be appointed from nominations submitted by other members of the 
        Board.
            (5) Failure to nominate.--If producers, importers, and 
        exporters fail to nominate individuals for appointment, the 
        Secretary may appoint members on a basis provided for in the 
        order. If the Board fails to nominate a public representative, 
        the member may be appointed by the Secretary without a 
        nomination.
    (d) Alternates.--The Secretary shall appoint an alternate for each 
member of the Board. An alternate shall--
            (1) be appointed in the same manner as the member for whom 
        the individual is an alternate; and
            (2) serve on the Board if the member is absent from a 
        meeting or is disqualified under subsection (f).
    (e) Terms.--A member of the Board shall be appointed for a term of 
3 years. No member may serve more than 2 consecutive 3-year terms, 
except that of the members first appointed--
            (1) 5 members shall be appointed for a term of 2 years; and
            (2) 6 members shall be appointed for a term of 3 years.
    (f) Disqualification.--If a member or alternate of the Board who 
was appointed as a producer, importer, exporter, or public 
representative member ceases to belong to the group for which the 
member was appointed, the member or alternate shall be disqualified 
from serving on the Board.
    (g) Compensation.--A members or alternate of the Board shall serve 
without pay.
    (h) General Powers and Duties.--The Board shall--
            (1) administer an order issued by the Secretary under 
        section 944, and an amendment to the order, in accordance with 
        the order and amendment and this subtitle;
            (2) prescribe rules and regulations to carry out the order;
            (3) meet, organize, and select from among members of the 
        Board a chairperson, other officers, and committees and 
        subcommittees, as the Board determines appropriate;
            (4) receive, investigate, and report to the Secretary 
        accounts of violations of the order;
            (5) make recommendations to the Secretary with respect to 
        an amendment that should be made to the order; and
            (6) employ or contract with a manager and staff to assist 
        in administering the order, except that, to reduce 
        administrative costs and increase efficiency, the Board shall 
        seek, to the extent practicable, to employ or contract with 
        personnel who are already associated with State chartered 
        organizations involved in promoting kiwifruit.

SEC. 946. REQUIRED TERMS IN ORDER.

    (a) Budgets and Plans.--
            (1) In general.--An order issued under section 944 shall 
        provide for periodic budgets and plans in accordance with this 
        subsection.
            (2) Budgets.--The Board shall prepare and submit to the 
        Secretary a budget prior to the beginning of the fiscal year of 
        the anticipated expenses and disbursements of the Board in the 
        administration of the order, including probable costs of 
        research, promotion, and consumer information. A budget shall 
        become effective on a \2/3\-vote of a quorum of the Board and 
        approval by the Secretary.
            (3) Plans.--Each budget shall include a plan for research, 
        promotion, and consumer information regarding kiwifruit. A plan 
        under this paragraph shall become effective on approval by the 
        Secretary. The Board may enter into contracts and agreements, 
        on approval by the Secretary, for--
                    (A) the development of and carrying out the plan; 
                and
                    (B) the payment of the cost of the plan, with funds 
                collected pursuant to this subtitle.
    (b) Assessments.--
            (1) In general.--The order shall provide for the imposition 
        and collection of assessments with regard to the production and 
        importation of kiwifruit in accordance with this subsection.
            (2) Rate.--The assessment rate shall be the reate that is 
        recommended by a \2/3\-vote of a quorum of the Board and 
        approved by the Secretary, except that the rate shall not 
        exceed $0.10 per 7-pound tray of kiwifruit or equivalent.
            (3) Collection by first handlers.--Except as provided in 
        paragraph (5), the first handler of kiwifruit shall--
                    (A) be responsible for the collection from the 
                producer, and payment to the Board, of assessments 
                required under this subsection; and
                    (B) maintain a separate record of the kiwifruit of 
                each producer whose kiwifruit are so handled, including 
                the kiwifruit owned by the handler.
            (4) Importers.--The assessment on imported kiwifruit shall 
        be paid by the importer to the United States Customs Service at 
        the time of entry into the United States and shall be remitted 
        to the Board.
            (5) Exemption from assessment.--The following persons or 
        activities are exempt from an assessment under this subsection:
                    (A) A producer who produces less than 500 pounds of 
                kiwifruit per year.
                    (B) An importer who imports less than 10,000 pounds 
                of kiwifruit per year.
                    (C) A sale of kiwifruit made directly from the 
                producer to a consumer for a purpose other than resale.
                    (D) The production or importation of kiwifruit for 
                processing.
            (6) Claim of exemption.--To claim an exemption under 
        paragraph (5) for a particular year, a person shall--
                    (A) submit an application to the Board stating the 
                basis for the exemption and certifying that the 
                quantity of kiwifruit produced, imported, or sold by 
                the person will not exceed any poundage limitation 
                required for the exemption in the year; or
                    (B) be on a list of approved processors developed 
                by the Board.
    (c) Use of Assessments.
            (1) Authorized uses.--The order shall provide that funds 
        paid to the Board as assessments under subsection (b) may be 
        used by the Board--
                    (A) to pay for research, promotion, and consumer 
                information described in the budget of the Board under 
                subsection (a) and for other expenses incurred by the 
                Board in the administration of an order;
                    (B) to pay such other expenses for the 
                administration, maintenance, and functioning of the 
                Board, including any enforcement efforts for the 
                collection of assessments as may be authorized by the 
                Secretary, including interest and penalties for late 
                payments; and
                    (C) to fund a reserve established under section 
                947(d).
            (2) Required uses.--The order shall provide that funds paid 
        to the Board as assessments under subsection (b) shall be used 
        by the Board--
                    (A) to pay the expenses incurred by the Secretary, 
                including salaries and expenses of Federal Government 
                employees, in implementing and administering the order; 
                and
                    (B) to reimburse the Secretary for any expenses 
                incurred by the Secretary in conducting referenda under 
                this subtitle.
            (3) Limitation on use of assessments.--Except for the first 
        year of operation of the Board, expenses for the 
        administration, maintenance, and functioning of the Board may 
        not exceed 30 percent of the budget for a year.
    (d) False Claims.--The order shall provide that any promotion 
funded with assessments collected under subsection (b) may not make--
            (1) any false claims on behalf of kiwifruit; and
            (2) any false statements with respect to the attributes or 
        use of any product that competes with kiwifruit for sale in 
        commerce.
    (e) Prohibition on Use of Funds.--The order shall provide that 
funds collected by the Board under this subtitle through assessments 
may not, in any manner, be used for the purpose of influencing 
legislation or governmental policy or action, except for making 
recommendations to the Secretary as provided for under this subtitle.
    (f) Books, Records, and Reports.--
            (1) Board.--The order shall require the Board--
                    (A) to maintain books and records with respect to 
                the receipt and disbursement of funds received by the 
                Board;
                    (B) to submit to the Secretary from time to time 
                such reports as the Secretary may require for 
                appropriate accounting; and
                    (C) to submit to the Secretary at the end of each 
                fiscal year a complete audit report by an independent 
                auditor regarding the activities of the Board during 
                the fiscal year.
            (2) Others.--To make information and data available to the 
        Board and the Secretary that is appropriate or necessary for 
        the effectuation, administration, or enforcement of this 
        subtitle (or any order or regulation issued under this 
        subtitle), the order shall require handlers and importers who 
        are responsible for the collection, payment, or remittance of 
        assessments under subsection (b)--
                    (A) to maintain and make available for inspection 
                by the employees and agents of the Board and the 
                Secretary such books and records as may be required by 
                the order; and
                    (B) to file, at the times and in the manner and 
                content prescribed by the order, reports regarding the 
                collection, payment, or remittance of the assessments.
    (g) Confidentiality.--
            (1) In general.--The order shall require that all 
        information obtained pursuant to subsection (f)(2) be kept 
        confidential by all officers and employees and agents of the 
        Department and of the Board. Only such information as the 
        Secretary considers relevant shall be disclosed to the public 
        and only in a suit or administrative hearing, brought at the 
        request of the Secretary or to which the Secretary or any 
        officer of the United States is a party, involving the order 
        with respect to which the information was furnished or 
        acquired.
            (2) Limitations.--Nothing in this subsection prohibits--
                    (A) issuance of general statements based on the 
                reports of a number of handlers and importers subject 
                to an order, if the statements do not identify the 
                information furnished by any person; or
                    (B) the publication, by direction of the Secretary, 
                of the name of any person violating an order issued 
                under section 944(a), together with a statement of the 
                particular provisions of the order violated by the 
                person.
            (3) Penalty.--Any person who willfully violates this 
        subsection, on conviction, shall be subject to a fine of not 
        more than $1,000 or to imprisonment for not more than 1 year, 
        or both, and, if the person is a member, officer, or agent of 
        the board or an employee of the Department, shall be removed 
        from office.
    (h) Withholding Information.--Nothing in this subtitle authorizes 
the withholding of information from Congress.

SEC. 947. PERMISSIVE TERMS IN ORDER.

    (a) Permissive Terms.--On the recommendation of the Board and with 
the approval of the Secretary, an order issued under section 944 may 
include the terms and conditions specified in this section and such 
additional terms and conditions as the Secretary considers necessary to 
effectuate the other provisions of the order and are incidental to, and 
not inconsistent with, this subtitle.
    (b) Alternative Payment and Reporting Schedules.--The order may 
authorize the Board to designate different handler payment and 
reporting schedules to recognize differences in marketing practices and 
procedures.
    (c) Working Groups.--The order may authorize the Board to convene 
working groups drawn from producers, handlers, importers, exporters, or 
the general public and utilize the expertise of the groups to assist in 
the development of research and marketing programs for kiwifruit.
    (d) Reserve Funds.--The order may authorize the Board to accumulate 
reserve funds from assessments collected pursuant to section 946(b) to 
permit an effective and continuous coordinated program of research, 
promotion, and consumer information in years in which production and 
assessment income may be reduced, except that any reserve fund may not 
exceed the amount budgeted for operation of this subtitle for 1 year.
    (e) Promotion Activities Outside United States.--The order may 
authorize the Board to use, with the approval of the Secretary, funds 
collected under section 946(b) and funds from other sources for the 
development and expansion of sales in foreign markets of kiwifruit 
produced in the United States.

SEC. 948. PETITION AND REVIEW.

    (a) Petition.--
            (1) In general.--A person subject to an order may file with 
        the Secretary a petition--
                    (A) stating that the order, a provision of the 
                order, or an obligation imposed in connection with the 
                order is not in accordance with law; and
                    (B) requesting a modification of the order or an 
                exemption from the order.
            (2) Hearings.--A person submitting a petition under 
        paragraph (1) shall be given an opportunity for a hearing on 
        the petition, in accordance with regulations issued by the 
        Secretary.
            (3) Ruling.--After the hearing, the Secretary shall make a 
        ruling on the petition which shall be final if the petition is 
        in accordance with law.
            (4) Limitation on petition.--Any petition filed under this 
        subtitle challenging an order, or any obligation imposed in 
        connected with an order, shall be filed not later than 2 years 
        after the effective date of the order or obligation.
    (b) Review.--
            (1) Commencement of action.--The district court of the 
        United States in any district in which the person who is a 
        petitioner under subsection (a) resides or carries on business 
        is vested with jurisdiction to review the ruling on the 
        petition of the person, if a complaint for that purpose is 
        filed not later than 20 days after the date of the entry of a 
        ruling by the Secretary under subsection (a).
            (2) Process.--Service of process in the proceedings shall 
        be conducted in accordance with the Federal Rules of Civil 
        Procedure.
            (3) Remands.--If the court determines that the ruling is 
        not in accordance with law, the court shall remand the matter 
        to the Secretary with directions--
                    (A) to make such ruling as the court shall 
                determine to be in accordance with law; or
                    (B) to take such further action as, in the opinion 
                of the court, the law requires.
            (4) Enforcement.--The pendency of a proceeding instituted 
        pursuant to subsection (a) shall not impede, hinder, or delay 
        the Attorney General or the Secretary from obtaining relief 
        pursuant to section 949.

SEC. 949. ENFORCEMENT.

    (a) Jurisdiction.--A district court of the United States shall have 
jurisdiction specifically to enforce, and to prevent and restrain any 
person from violating, any order or regulation made or issued by the 
Secretary under this subtitle.
    (b) Referral to Attorney General.--A civil action authorized to be 
brought under this section shall be referred to the Attorney General 
for appropriate action, except that the Secretary is not required to 
refer to the Attorney General a violation of this subtitle, or any 
order or regulation issued under this subtitle, if the Secretary 
believes that the administration and enforcement of this subtitle would 
be adequately served by administrative action under subsection (c) or 
suitable written notice or warning to any person committing the 
violation.
    (c) Civil Penalties and Orders.--
            (1) Civil penalties.--Any person who willfully violates any 
        provision of any order or regulation issued by the Secretary 
        under this subtitle, or who fails or refuses to pay, collect, 
        or remit any assessment or fee duly required of the person 
        under the order or regulation, may be assessed a civil penalty 
        by the Secretary of not less than $500 nor more than $5,000 for 
        each such violation. Each violation shall be a separate 
        offense.
            (2) Cease-and-desist orders.--In addition to or in lieu of 
        the civil penalty, the Secretary may issue an order requiring 
        the person to cease and desist from continuing the violation.
            (3) Notice and hearing.--No order assessing a civil penalty 
        or cease-and-desist order may be issued by the Secretary under 
        this subsection unless the Secretary gives the person against 
        whom the order is issued notice and opportunity for a hearing 
        on the record before the Secretary with respect to the 
        violation.
            (4) Finality.--The order of the Secretary assessing a 
        penalty or imposing a cease-and-desist order shall be final and 
        conclusive unless the person against whom the order is issued 
        files an appeal from the order with the appropriate district 
        court of the United States, in accordance with subsection (d).
    (d) Review by United States District Court.--
            (1) Commencement of action.--Any person against whom a 
        violation is found and a civil penalty assessed or cease-and-
        desist order issued under subsection (c) may obtain review of 
        the penalty or order in the district court of the United States 
        for the district in which the person resides or does business, 
        or the United States district court for the District of 
        Columbia, by--
                    (A) filing a notice of appeal in the court not 
                later than 30 days after the date of the order; and
                    (B) simultaneously sending a copy of the notice by 
                certified mail to the Secretary.
            (2) Record.--The Secretary shall promptly file in the court 
        a certified copy of the record on which the Secretary found 
        that the person had committed a violation.
            (3) Standard of review.--A finding of the Secretary shall 
        be set aside only if the finding is found to be unsupported by 
        substantial evidence.
    (e) Failure to Obey Orders.--Any person who fails to obey a cease-
and-desist order issued by the Secretary after the order has become 
final and unappealable, or after the appropriate United States district 
court has entered a final judgment in favor of the Secretary, shall be 
subject to a civil penalty assessed by the Secretary, after opportunity 
for a hearing and for judicial review under the procedures specified in 
subsections (c) and (d), of not more than $500 for each offense. Each 
day during which the failure continues shall be considered a separate 
violation of the order.
    (f) Failure to Pay Penalties.--If a person fails to pay an 
assessment of a civil penalty after the assessment has become a final 
and unappealable order issued by the Secretary, or after the 
appropriate United States district court has entered final judgment in 
favor of the Secretary, the Secretary shall refer the matter to the 
Attorney General for recovery of the amount assessed in the district 
court of the United States in any district in which the person resides 
or conducts business. In the action, the validity and appropriateness 
of the final order imposing the civil penalty shall not be subject to 
review.

SEC. 950. INVESTIGATIONS AND POWER TO SUBPOENA.

    (a) In General.--The Secretary may make such investigations as the 
Secretary considers necessary--
            (1) for the effective carrying out of the responsibilities 
        of the Secretary under this subtitle; or
            (2) to determine whether a person subject to this subtitle 
        has engaged or is engaging in any act that constitutes a 
        violation of this subtitle, or any order, rule, or regulation 
        issued under this subtitle.
    (b) Power to Subpoena.--
            (1) Investigations.--For the purpose of an investigation 
        made under subsection (a), the Secretary may administer oaths 
        and affirmations and may issue subpoenas to require the 
        production of any records that are relevant to the inquiry. The 
        production of any such records may be required from any place 
        in the United States.
            (2) Administrative hearings.--For the purpose of an 
        administrative hearing held under section 948 or 949, the 
        presiding officer is authorized to administer oaths and 
        affirmations, subpoena witnesses, compel the attendance of 
        witnesses, take evidence, and require the production of any 
        records that are relevant to the inquiry. The attendance of 
        witnesses and the production of any such records may be 
        required from any place in the United States.
    (c) Aid of Courts.--In the case of contumacy by, or refusal to obey 
a subpoena to, any person, the Secretary may invoke the aid of any 
court of the United States within the jurisdiction of which the 
investigation or proceeding is carried on, or where the person resides 
or carries on business, to enforce a subpoena issued by the Secretary 
under subsection (b). The court may issue an order requiring the person 
to comply with the subpoena.
    (d) Contempt.--Any failure to obey the order of the court may be 
punished by the court as a contempt of the order.
    (e) Process.--Process in any such case may be served in the 
judicial district of which the person resides or conducts business or 
wherever the person may be found.
    (f) Hearing Site.--The site of any hearing held under section 948 
or 949 shall be within the judicial district where the person is an 
inhabitant or has a principal place of business.

SEC. 951. REFERENDA.

    (a) Initial Referendum.--
            (1) Referendum required.--During the 60-day period 
        immediately preceding the proposed effective date of an order 
        issued under section 944, the Secretary shall conduct a 
        referendum among kiwifruit producers and importers who will be 
        subject to assessments under the order, to ascertain whether 
        producers and importers approve the implementation of the 
        order.
            (2) Approval of order.--The order shall become effective, 
        as provided in section 944, if the Secretary determines that--
                    (A) the order has been approved by a majority of 
                the producers and importers voting in the referendum; 
                and
                    (B) the producers and importers produce and import 
                more than 50 percent of the total volume of kiwifruit 
                produced and imported by persons voting in the 
                referendum.
    (b) Subsequent Referenda.--The Secretary may periodically conduct a 
referendum to determine if kiwifruit producers and importers favor the 
continuation, termination, or suspension of any order issued under 
section 944 that is in effect at the time of the referendum.
    (c) Required Referenda.--The Secretary shall hold a referendum 
under subsection (b)--
            (1) at the end of the 6-year period beginning on the 
        effective date of the order and at the end of each subsequent 
        6-year period;
            (2) at the request of the Board; or
            (3) if not less than 30 percent of the kiwifruit producers 
        and importers subject to assessments under the order submit a 
        petition requesting the referendum.
    (d) Vote.--On completion of a referendum under subsection (b), the 
Secretary shall suspend or terminate the order that was subject to the 
referendum at the end of the marketing year if--
            (1) the suspension or termination of the order is favored 
        by not less than a majority of the producers and importers 
        voting in the referendum; and
            (2) the producers and importers produce and import more 
        than 50 percent of the total volume of kiwifruit produced and 
        imported by persons voting in the referendum.
    (e) Confidentiality.--The ballots and other information or reports 
that reveal, or tend to reveal, the vote of any person under this 
subtitle and the voting list shall be held strictly confidential and 
shall not be disclosed.

SEC. 952. SUSPENSION AND TERMINATION OF ORDER BY SECRETARY.

    (a) In General.--If the Secretary finds that an order issued under 
section 944, or a provision of the order, obstructs or does not tend to 
effectuate the purposes of this subtitle, the Secretary shall terminate 
or suspend the operation of the order or provision.
    (b) Limitation.--The termination or suspension of any order, or any 
provision of an order, shall not be considered an order under this 
subtitle.

SEC. 953. REGULATIONS.

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

SEC. 954. AUTHORIZATION OF APPROPRIATIONS.

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

             Subtitle D--Commodity Promotion and Evaluation

SEC. 961. COMMODITY PROMOTION AND EVALUATION.

    (a) Findings.--Congress finds that--
            (1) it is in the national public interest and vital to the 
        welfare of the agricultural economy of the United States to 
        expand and develop markets for agricultural commodities through 
        generic, industry-funded promotion programs;
            (2) the programs play a unique role in advancing the demand 
        for agricultural commodities, since the programs increase the 
        total market for a product to the benefit of consumers and all 
        producers;
            (3) the programs complement branded advertising 
        initiatives, which are aimed at increasing the market share of 
        individual competitors;
            (4) the programs are of particular benefit to small 
        producers, who may lack the resources or market power to 
        advertise on their own;
            (5) the programs do not impede the branded advertising 
        efforts of individual firms but instead increase market demand 
        by methods that each individual entity would not have the 
        incentive to employ;
            (6) the programs, paid for by the producers who directly 
        reap the benefits of the programs, provide a unique opportunity 
        for agricultural producers to inform consumers about their 
        products;
            (7) it is important to ensure that the programs be carried 
        out in an effective and coordinated manner that is designed to 
        strengthen the position of the commodities in the marketplace 
        and to maintain and expand the markets and uses of the 
        commodities; and
            (8) independent evaluation of the effectiveness of the 
        programs will assist Congress and the Secretary of Agriculture 
        in ensuring that the objectives of the programs are met.
    (b) Independent Evaluations.--Except as otherwise provided by law, 
and at such intervals as the Secretary of Agriculture may determine, 
but not more frequently than every 3 years or 3 years after the 
establishment of a program, the Secretary shall require that each 
industry-funded generic promotion program authorized by Federal law for 
an agricultural commodity shall provide for an independent evaluation 
of the program and the effectiveness of the program. The evaluation may 
include an analysis of benefits, costs, and the efficacy of promotional 
and research efforts under the program. The evaluation shall be funded 
from industry assessments and made available to the public.
    (c) Administrative Costs.--The Secretary shall provide to Congress 
annually information on administrative expenses on programs referred to 
in subsection (b).

            Passed the Senate February 7, 1996.

            Attest:

                                                             Secretary.

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104th CONGRESS

  2d Session

                                S. 1541

_______________________________________________________________________

                                 AN ACT

     To extend, reform, and improve agricultural commodity, trade, 
       conservation, and other programs, and for other purposes.