[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2559 Enrolled Bill (ENR)]

        H.R.2559

                       One Hundred Sixth Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

           Begun and held at the City of Washington on Monday,
             the twenty-fourth day of January, two thousand


                                 An Act


 
To amend the Federal Crop Insurance Act to strengthen the safety net for 
 agricultural producers by providing greater access to more affordable 
risk management tools and improved protection from production and income 
   loss, to improve the efficiency and integrity of the Federal crop 
                           insurance program.

    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 Risk 
Protection Act of 2000''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

                    TITLE I--CROP INSURANCE COVERAGE

                   Subtitle A--Crop Insurance Coverage

Sec. 101. Premium schedule for additional coverage.
Sec. 102. Premium schedule for other plans of insurance.
Sec. 103. Catastrophic risk protection.
Sec. 104. Administrative fee for additional coverage.
Sec. 105. Assigned yields and actual production history adjustments.
Sec. 106. Review and adjustment in rating methodologies.
Sec. 107. Quality adjustment.
Sec. 108. Double insurance and prevented planting.
Sec. 109. Noninsured crop disaster assistance program.

                 Subtitle B--Improving Program Integrity

Sec. 121. Improving program compliance and integrity.
Sec. 122. Protection of confidential information.
Sec. 123. Good farming practices.
Sec. 124. Records and reporting.

                 Subtitle C--Research and Pilot Programs

Sec. 131. Research and development.
Sec. 132. Pilot programs.
Sec. 133. Education and risk management assistance.
Sec. 134. Options pilot program.

                       Subtitle D--Administration

Sec. 141. Relation to other laws.
Sec. 142. Management of Corporation.
Sec. 143. Contracting for rating of plans of insurance.
Sec. 144. Electronic availability of crop insurance information.
Sec. 145. Adequate coverage for States.
Sec. 146. Submission of policies and materials to Board.
Sec. 147. Funding.
Sec. 148. Standard Reinsurance Agreement.

                        Subtitle E--Miscellaneous

Sec. 161. Limitation on revenue coverage for potatoes.
Sec. 162. Crop insurance coverage for cotton and rice.
Sec. 163. Indemnity payments for certain producers.
Sec. 164. Sense of the Congress regarding the Federal crop insurance 
          program.
Sec. 165. Sense of the Congress on rural America, including minority and 
          limited-resource farmers.

             Subtitle F--Effective Dates and Implementation

Sec. 171. Effective dates.
Sec. 172. Regulations.
Sec. 173. Savings clause.

                    TITLE II--AGRICULTURAL ASSISTANCE

                   Subtitle A--Market Loss Assistance

Sec. 201. Market loss assistance.
Sec. 202. Oilseeds.
Sec. 203. Specialty crops.
Sec. 204. Other commodities.
Sec. 205. Payments in lieu of loan deficiency payments.
Sec. 206. Expansion of producers eligible for loan deficiency payments.

                        Subtitle B--Conservation

Sec. 211. Conservation assistance.
Sec. 212. Condition on development of Little Darby National Wildlife 
          Refuge, Ohio.

                          Subtitle C--Research

Sec. 221. Carbon cycle research.
Sec. 222. Tobacco research for medicinal purposes.
Sec. 223. Research on soil science and forest health management.
Sec. 224. Research on waste streams from livestock production.
Sec. 225. Improved storage and management of livestock and poultry 
          waste.
Sec. 226. Ethanol research pilot plant.
Sec. 227. Bioinformatics Institute for Model Plant Species.

                   Subtitle D--Agricultural Marketing

Sec. 231. Value-added agricultural product market development grants.

                     Subtitle E--Nutrition Programs

Sec. 241. Calculation of minimum amount of commodities for school lunch 
          requirements.
Sec. 242. School lunch data.
Sec. 243. Child and adult care food program integrity.
Sec. 244. Adjustments to WIC program.

                       Subtitle F--Other Programs

Sec. 251. Authority to provide loan in connection with boll weevil 
          eradication.
Sec. 252. Animal disease control.
Sec. 253. Emergency loans for seed producers.
Sec. 254. Temporary suspension of authority to combine certain offices.
Sec. 255. Farm operating loan eligibility.
Sec. 256. Water systems for rural and Native villages in Alaska.
Sec. 257. Crop and pasture flood compensation program.
Sec. 258. Flood mitigation near Pierre, South Dakota.
Sec. 259. Restoration of eligibility for crop loss assistance.

                       Subtitle G--Administration

Sec. 261. Funding.
Sec. 262. Obligation period.
Sec. 263. Regulations.
Sec. 264. Paygo adjustment.
Sec. 265. Commodity Credit Corporation reimbursement.

         TITLE III--BIOMASS RESEARCH AND DEVELOPMENT ACT OF 2000

Sec. 301. Short title.
Sec. 302. Findings.
Sec. 303. Definitions.
Sec. 304. Cooperation and coordination in biomass research and 
          development.
Sec. 305. Biomass Research and Development Board.
Sec. 306. Biomass Research and Development Technical Advisory Committee.
Sec. 307. Biomass Research And Development Initiative.
Sec. 308. Administrative support and funds.
Sec. 309. Reports.
Sec. 310. Termination of authority.

                     TITLE IV--PLANT PROTECTION ACT

Sec. 401. Short title.
Sec. 402. Findings.
Sec. 403. Definitions.

                      Subtitle A--Plant Protection

Sec. 411. Regulation of movement of plant pests.
Sec. 412. Regulation of movement of plants, plant products, biological 
          control 
          organisms, noxious weeds, articles, and means of conveyance.
Sec. 413. Notification and holding requirements upon arrival.
Sec. 414. General remedial measures for new plant pests and noxious 
          weeds.
Sec. 415. Declaration of extraordinary emergency and resulting 
          authorities.
Sec. 416. Recovery of compensation for unauthorized activities.
Sec. 417. Control of grasshoppers and mormon crickets.
Sec. 418. Certification for exports.

                 Subtitle B--Inspection and Enforcement

Sec. 421. Inspections, seizures, and warrants.
Sec. 422. Collection of information.
Sec. 423. Subpoena authority.
Sec. 424. Penalties for violation.
Sec. 425. Enforcement actions of Attorney General.
Sec. 426. Court jurisdiction.

                  Subtitle C--Miscellaneous Provisions

Sec. 431. Cooperation.
Sec. 432. Buildings, land, people, claims, and agreements.
Sec. 433. Reimbursable agreements.
Sec. 434. Regulations and orders.
Sec. 435. Protection for mail handlers.
Sec. 436. Preemption.
Sec. 437. Severability.
Sec. 438. Repeal of superseded laws.

               Subtitle D--Authorization of Appropriations

Sec. 441. Authorization of appropriations.
Sec. 442. Transfer authority.

                       TITLE V--INSPECTION ANIMALS

Sec. 501. Civil penalty.
Sec. 502. Subpoena authority.

                        TITLE I--CROP INSURANCE
                  Subtitle A--Crop Insurance Coverage

SEC. 101. PREMIUM SCHEDULE FOR ADDITIONAL COVERAGE.

    (a) Expected Market Price.--Section 508(c) of the Federal Crop 
Insurance Act (7 U.S.C. 1508(c)) is amended by striking paragraph (5) 
and inserting the following:
        ``(5) Expected market price.--
            ``(A) Establishment or approval.--For the purposes of this 
        title, the Corporation shall establish or approve the price 
        level (referred to in this title as the `expected market 
        price') of each agricultural commodity for which insurance is 
        offered.
            ``(B) General rule.--Except as otherwise provided in 
        subparagraph (C), the expected market price of an agricultural 
        commodity shall be not less than the projected market price of 
        the agricultural commodity, as determined by the Corporation.
            ``(C) Other authorized approaches.--The expected market 
        price of an agricultural commodity--
                ``(i) may be based on the actual market price of the 
            agricultural commodity at the time of harvest, as 
            determined by the Corporation;
                ``(ii) in the case of revenue and other similar plans 
            of insurance, may be the actual market price of the 
            agricultural commodity, as determined by the Corporation;
                ``(iii) in the case of cost of production or similar 
            plans of insurance, shall be the projected cost of 
            producing the agricultural commodity, as determined by the 
            Corporation; or
                ``(iv) in the case of other plans of insurance, may be 
            an appropriate amount, as determined by the Corporation.''.
    (b) Premium Amounts.--Section 508(d) of the Federal Crop Insurance 
Act (7 U.S.C. 1508(d)) is amended--
        (1) in paragraph (2), by striking subparagraphs (B) and (C) and 
    inserting the following:
            ``(B) In the case of additional coverage equal to or 
        greater than 50 percent of the recorded or appraised average 
        yield indemnified at not greater than 100 percent of the 
        expected market price, or a comparable coverage for a policy or 
        plan of insurance that is not based on individual yield, the 
        amount of the premium shall--
                ``(i) be sufficient to cover anticipated losses and a 
            reasonable reserve; and
                ``(ii) include an amount for operating and 
            administrative expenses, as determined by the Corporation, 
            on an industry-wide basis as a percentage of the amount of 
            the premium used to define loss ratio.''; and
        (2) by adding at the end the following:
        ``(3) Performance-based discount.--The Corporation may provide 
    a performance-based premium discount for a producer of an 
    agricultural commodity who has good insurance or production 
    experience relative to other producers of that agricultural 
    commodity in the same area, as determined by the Corporation.''.
    (c) Payment Schedule.--Section 508(e)(2) of the Federal Crop 
Insurance Act (7 U.S.C. 1508(e)(2)) is amended--
        (1) in the matter preceding the subparagraphs, by striking 
    ``The amount'' and inserting ``Subject to paragraph (4), the 
    amount''; and
        (2) by striking subparagraphs (B) and (C) and inserting the 
    following:
            ``(B) In the case of additional coverage equal to or 
        greater than 50 percent, but less than 55 percent, of the 
        recorded or appraised average yield indemnified at not greater 
        than 100 percent of the expected market price, or a comparable 
        coverage for a policy or plan of insurance that is not based on 
        individual yield, the amount shall be equal to the sum of--
                ``(i) 67 percent of the amount of the premium 
            established under subsection (d)(2)(B)(i) for the coverage 
            level selected; and
                ``(ii) the amount determined under subsection 
            (d)(2)(B)(ii) for the coverage level selected to cover 
            operating and administrative expenses.
            ``(C) In the case of additional coverage equal to or 
        greater than 55 percent, but less than 65 percent, of the 
        recorded or appraised average yield indemnified at not greater 
        than 100 percent of the expected market price, or a comparable 
        coverage for a policy or plan of insurance that is not based on 
        individual yield, the amount shall be equal to the sum of--
                ``(i) 64 percent of the amount of the premium 
            established under subsection (d)(2)(B)(i) for the coverage 
            level selected; and
                ``(ii) the amount determined under subsection 
            (d)(2)(B)(ii) for the coverage level selected to cover 
            operating and administrative expenses.
            ``(D) In the case of additional coverage equal to or 
        greater than 65 percent, but less than 75 percent, of the 
        recorded or appraised average yield indemnified at not greater 
        than 100 percent of the expected market price, or a comparable 
        coverage for a policy or plan of insurance that is not based on 
        individual yield, the amount shall be equal to the sum of--
                ``(i) 59 percent of the amount of the premium 
            established under subsection (d)(2)(B)(i) for the coverage 
            level selected; and
                ``(ii) the amount determined under subsection 
            (d)(2)(B)(ii) for the coverage level selected to cover 
            operating and administrative expenses.
            ``(E) In the case of additional coverage equal to or 
        greater than 75 percent, but less than 80 percent, of the 
        recorded or appraised average yield indemnified at not greater 
        than 100 percent of the expected market price, or a comparable 
        coverage for a policy or plan of insurance that is not based on 
        individual yield, the amount shall be equal to the sum of--
                ``(i) 55 percent of the amount of the premium 
            established under subsection (d)(2)(B)(i) for the coverage 
            level selected; and
                ``(ii) the amount determined under subsection 
            (d)(2)(B)(ii) for the coverage level selected to cover 
            operating and administrative expenses.
            ``(F) In the case of additional coverage equal to or 
        greater than 80 percent, but less than 85 percent, of the 
        recorded or appraised average yield indemnified at not greater 
        than 100 percent of the expected market price, or a comparable 
        coverage for a policy or plan of insurance that is not based on 
        individual yield, the amount shall be equal to the sum of--
                ``(i) 48 percent of the amount of the premium 
            established under subsection (d)(2)(B)(i) for the coverage 
            level selected; and
                ``(ii) the amount determined under subsection 
            (d)(2)(B)(ii) for the coverage level selected to cover 
            operating and administrative expenses.
            ``(G) Subject to subsection (c)(4), in the case of 
        additional coverage equal to or greater than 85 percent of the 
        recorded or appraised average yield indemnified at not greater 
        than 100 percent of the expected market price, or a comparable 
        coverage for a policy or plan of insurance that is not based on 
        individual yield, the amount shall be equal to the sum of--
                ``(i) 38 percent of the amount of the premium 
            established under subsection (d)(2)(B)(i) for the coverage 
            level selected; and
                ``(ii) the amount determined under subsection 
            (d)(2)(B)(ii) for the coverage level selected to cover 
            operating and administrative expenses.''.
    (d) Temporary Prohibition on Continuous Coverage.--Section 508(e) 
of the Federal Crop Insurance Act (7 U.S.C. 1508(e)) is amended by 
striking paragraph (4) and inserting the following:
        ``(4) Temporary prohibition on continuous coverage.--
    Notwithstanding paragraph (2), during each of the 2001 through 2005 
    reinsurance years, additional coverage under subsection (c) shall 
    be available only in 5 percent increments beginning at 50 percent 
    of the recorded or appraised average yield.''.
    (e) Premium Payment Disclosure.--Section 508(e) of the Federal Crop 
Insurance Act (7 U.S.C. 1508(e)) is amended by adding at the end the 
following:
        ``(5) Premium payment disclosure.--Each policy or plan of 
    insurance under this title shall prominently indicate the dollar 
    amount of the portion of the premium paid by the Corporation.''.
    (f) Conforming Amendment.--Section 508(g)(2)(D) of the Federal Crop 
Insurance Act (7 U.S.C. 1508(g)(2)(D)) is amended by striking ``(as 
provided in subsection (e)(4))''.

SEC. 102. PREMIUM SCHEDULE FOR OTHER PLANS OF INSURANCE.

    (a) Premium Schedule.--Section 508(h) of the Federal Crop Insurance 
Act (7 U.S.C. 1508(h)) is amended--
        (1) in paragraph (2), by striking the second sentence; and
        (2) by striking paragraph (5) and inserting the following:
        ``(5) Premium schedule.--
            ``(A) Payment by corporation.--In the case of a policy or 
        plan of insurance developed and approved under this subsection 
        or section 522, or conducted under section 523 (other than a 
        policy or plan of insurance applicable to livestock), the 
        Corporation shall pay a portion of the premium of the policy or 
        plan of insurance that is equal to--
                ``(i) the percentage, specified in subsection (e) for a 
            similar level of coverage, of the total amount of the 
            premium used to define loss ratio; and
                ``(ii) an amount for administrative and operating 
            expenses determined in accordance with subsection (k)(4).
            ``(B) Transitional schedule.--Effective only during the 
        2001 reinsurance year, in the case of a policy or plan of 
        insurance developed and approved under this subsection or 
        section 522, or conducted under section 523 (other than a 
        policy or plan of insurance applicable to livestock), and first 
        approved by the Board after the date of the enactment of this 
        subparagraph, the payment by the Corporation of a portion of 
        the premium of the policy may not exceed the dollar amount that 
        would otherwise be authorized under subsection (e) (consistent 
        with subsection (c)(5), as in effect on the day before the date 
        of the enactment of this subparagraph).''.
    (b) Reimbursement Rate.--Section 508(k)(4) of the Federal Crop 
Insurance Act (7 U.S.C. 1508(k)(4)) is amended by adding at the end the 
following:
            ``(C) Other reductions.--Beginning with the 2002 
        reinsurance year, in the case of a policy or plan of insurance 
        approved by the Board that was not reinsured during the 1998 
        reinsurance year but, had it been reinsured, would have 
        received a reduced rate of reimbursement during the 1998 
        reinsurance year, the rate of reimbursement for administrative 
        and operating costs established for the policy or plan of 
        insurance shall take into account the factors used to determine 
        the rate of reimbursement for administrative and operating 
        costs during the 1998 reinsurance year, including the expected 
        difference in premium and actual administrative and operating 
        costs of the policy or plan of insurance relative to an 
        individual yield policy or plan of insurance and other 
        appropriate factors, as determined by the Corporation.''.

SEC. 103. CATASTROPHIC RISK PROTECTION.

    (a) Alternative Coverage.--Section 508(b) of the Federal Crop 
Insurance Act (7 U.S.C. 1508(b)) is amended by striking paragraph (3) 
and inserting the following:
        ``(3) Alternative catastrophic coverage.--Beginning with the 
    2001 crop year, the Corporation shall offer producers of an 
    agricultural commodity the option of selecting either of the 
    following:
            ``(A) The catastrophic risk protection coverage available 
        under paragraph (2)(A).
            ``(B) An alternative catastrophic risk protection coverage 
        that--
                ``(i) indemnifies the producer on an area yield and 
            loss basis if such a policy or plan of insurance is offered 
            for the agricultural commodity in the county in which the 
            farm is located;
                ``(ii) provides, on a uniform national basis, a higher 
            combination of yield and price protection than the coverage 
            available under paragraph (2)(A); and
                ``(iii) the Corporation determines is comparable to the 
            coverage available under paragraph (2)(A) for purposes of 
            subsection (e)(2)(A).''.
    (b) Administrative Fee.--
        (1) Revised fee.--Section 508(b)(5) of the Federal Crop 
    Insurance Act (7 U.S.C. 1508(b)(5)) is amended--
            (A) in subparagraph (A), by striking ``$50'' and inserting 
        ``$100'';
            (B) by striking subparagraph (B); and
            (C) in subparagraph (C), by striking ``amounts required 
        under subparagraphs (A) and (B)'' and inserting 
        ``administrative fee required by this paragraph''.
        (2) Conforming amendment.--Section 748 of the Agriculture, 
    Rural Development, Food and Drug Administration, and Related 
    Agencies Appropriations Act, 1999 (as contained in section 101(a) 
    of division A of Public Law 105-277; 7 U.S.C. 1508 note), is 
    amended by striking ``$50'' and inserting ``$100''.
    (c) Payment of Administrative Fee on Behalf of Producers.--Section 
508(b)(5) of the Federal Crop Insurance Act (7 U.S.C. 1508(b)(5)), as 
amended by subsection (b)(1)(B), is amended by inserting after 
subparagraph (A) the following:
            ``(B) Payment on behalf of producers.--
                ``(i) Payment authorized.--If State law permits a 
            licensing fee or other payment to be paid by an insurance 
            provider to a cooperative association or trade association 
            and rebated to a producer with catastrophic risk protection 
            or additional coverage, a cooperative association or trade 
            association located in that State may pay, on behalf of a 
            member of the association in that State or a contiguous 
            State who consents to be insured under such an arrangement, 
            all or a portion of the administrative fee required by this 
            paragraph for catastrophic risk protection.
                ``(ii) Treatment of licensing fees.--A licensing fee or 
            other payment made by an insurance provider to the 
            cooperative association or trade association in connection 
            with the issuance of catastrophic risk protection or 
            additional coverage to members of the cooperative 
            association or trade association shall be subject to the 
            laws regarding rebates of the State in which the fee or 
            other payment is made.
                ``(iii) Selection of provider.--Nothing in this 
            subparagraph limits the option of a producer to select the 
            licensed insurance agent or other approved insurance 
            provider from whom the producer will purchase a policy or 
            plan of insurance or to refuse coverage for which a payment 
            is offered to be made under clause (i).
                ``(iv) Delivery of insurance.--A policy or plan of 
            insurance for which a payment is made under clause (i) 
            shall be delivered by a licensed insurance agent or other 
            approved insurance provider.
                ``(v) Additional coverage encouraged.--A cooperative 
            association or trade association, and any approved 
            insurance provider with whom a licensing fee or other 
            arrangement under this subparagraph is made, shall 
            encourage producer members to purchase appropriate levels 
            of additional coverage in order to meet the risk management 
            needs of the member producers.
                ``(vi) Report.--Not later than April 1, 2002, the 
            Secretary shall submit to the Committee on Agriculture of 
            the House of Representatives and the Committee on 
            Agriculture, Nutrition, and Forestry of the Senate a report 
            that evaluates--

                    ``(I) the operation of this subparagraph; and
                    ``(II) the impact of this subparagraph on 
                participation in the Federal crop insurance program, 
                including the impact on levels of coverage 
                purchased.''.

    (d) Reimbursement Rate Change.--Section 508(b)(11) of the Federal 
Crop Insurance Act (7 U.S.C. 1508(b)(11)) is amended by striking ``11 
percent'' and inserting ``8 percent''.

SEC. 104. ADMINISTRATIVE FEE FOR ADDITIONAL COVERAGE.

    Section 508(c) of the Federal Crop Insurance Act (7 U.S.C. 1508(c)) 
is amended by striking paragraph (10) and inserting the following:
        ``(10) Administrative fee.--
            ``(A) Fee required.--If a producer elects to purchase 
        coverage for a crop at a level in excess of catastrophic risk 
        protection, the producer shall pay an administrative fee for 
        the additional coverage of $30 per crop per county.
            ``(B) Use of fees; waiver.--Subparagraphs (D) and (E) of 
        subsection (b)(5) shall apply with respect to the collection 
        and use of administrative fees under this paragraph.''.

SEC. 105. ASSIGNED YIELDS AND ACTUAL PRODUCTION HISTORY ADJUSTMENTS.

    (a) Assigned Yields.--Section 508(g)(2)(B) of the Federal Crop 
Insurance Act (7 U.S.C. 1508(g)(2)(B)) is amended--
        (1) by striking ``assigned a yield'' and inserting ``assigned--
                ``(i) a yield'';
        (2) by striking the period at the end and inserting ``; or''; 
    and
        (3) by adding at the end the following:
                ``(ii) a yield determined by the Corporation, in the 
            case of--

                    ``(I) a producer that has not had a share of the 
                production of the insured crop for more than two crop 
                years, as determined by the Secretary;
                    ``(II) a producer that produces an agricultural 
                commodity on land that has not been farmed by the 
                producer; or
                    ``(III) a producer that rotates a crop produced on 
                a farm to a crop that has not been produced on the 
                farm.''.

    (b) Actual Production History Adjustments.--Section 508(g) of the 
Federal Crop Insurance Act (7 U.S.C. 1508(g)) is amended by adding at 
the end the following:
        ``(4) Adjustment in actual production history to establish 
    insurable yields.--
            ``(A) Application.--This paragraph shall apply whenever the 
        Corporation uses the actual production records of the producer 
        to establish the producer's actual production history for an 
        agricultural commodity for any of the 2001 and subsequent crop 
        years.
            ``(B) Election to use percentage of transitional yield.--
        If, for one or more of the crop years used to establish the 
        producer's actual production history of an agricultural 
        commodity, the producer's recorded or appraised yield of the 
        commodity was less than 60 percent of the applicable 
        transitional yield, as determined by the Corporation, the 
        Corporation shall, at the election of the producer--
                ``(i) exclude any of such recorded or appraised yield; 
            and
                ``(ii) replace each excluded yield with a yield equal 
            to 60 percent of the applicable transitional yield.
            ``(C) Premium adjustment.--In the case of a producer that 
        makes an election under subparagraph (B), the Corporation shall 
        adjust the premium to reflect the risk associated with the 
        adjustment made in the actual production history of the 
        producer.
        ``(5) Adjustment to reflect increased yields from successful 
    pest control efforts.--
            ``(A) Situations justifying adjustment.--The Corporation 
        shall develop a methodology for adjusting the actual production 
        history of a producer when each of the following apply:
                ``(i) The producer's farm is located in an area where 
            systematic, area-wide efforts have been undertaken using 
            certain operations or measures, or the producer's farm is a 
            location at which certain operations or measures have been 
            undertaken, to detect, eradicate, suppress, or control, or 
            at least to prevent or retard the spread of, a plant 
            disease or plant pest, including a plant pest (as defined 
            in section 102 of the Department of Agriculture Organic Act 
            of 1944 (7 U.S.C. 147a)).
                ``(ii) The presence of the plant disease or plant pest 
            has been found to adversely affect the yield of the 
            agricultural commodity for which the producer is applying 
            for insurance.
                ``(iii) The efforts described in clause (i) have been 
            effective.
            ``(B) Adjustment amount.--The amount by which the 
        Corporation adjusts the actual production history of a producer 
        of an agricultural commodity shall reflect the degree to which 
        the success of the systematic, area-wide efforts described in 
        subparagraph (A), on average, increases the yield of the 
        commodity on the producer's farm, as determined by the 
        Corporation.''.

SEC. 106. REVIEW AND ADJUSTMENT IN RATING METHODOLOGIES.

    Section 508(i) of the Federal Crop Insurance Act (7 U.S.C. 1508(i)) 
is amended--
        (1) by striking ``The Corporation'' and inserting the 
    following:
        ``(1) In general.--The Corporation''; and
        (2) by adding at the end the following:
        ``(2) Review of rating methodologies.--To maximize 
    participation in the Federal crop insurance program and to ensure 
    equity for producers, the Corporation shall periodically review the 
    methodologies employed for rating plans of insurance under this 
    title consistent with section 507(c)(2).
        ``(3) Analysis of rating and loss history.--The Corporation 
    shall analyze the rating and loss history of approved policies and 
    plans of insurance for agricultural commodities by area.
        ``(4) Premium adjustment.--If the Corporation makes a 
    determination that premium rates are excessive for an agricultural 
    commodity in an area relative to the requirements of subsection 
    (d)(2) for that area, then, for the 2002 crop year (and as 
    necessary thereafter), the Corporation shall make appropriate 
    adjustments in the premium rates for that area for that 
    agricultural commodity.''.

SEC. 107. QUALITY ADJUSTMENT.

    Section 508 of the Federal Crop Insurance Act (7 U.S.C. 1508) is 
amended by striking subsection (m) and inserting the following:
    ``(m) Quality Loss Adjustment Coverage.--
        ``(1) Effect of coverage.--If a policy or plan of insurance 
    offered under this title includes quality loss adjustment coverage, 
    the coverage shall provide for a reduction in the quantity of 
    production of the agricultural commodity considered produced during 
    a crop year, or a similar adjustment, as a result of the 
    agricultural commodity not meeting the quality standards 
    established in the policy or plan of insurance.
        ``(2) Additional quality loss adjustment.--
            ``(A) Producer option.--Notwithstanding any other provision 
        of law, in addition to the quality loss adjustment coverage 
        available under paragraph (1), the Corporation shall offer 
        producers the option of purchasing quality loss adjustment 
        coverage on a basis that is smaller than a unit with respect to 
        an agricultural commodity that satisfies each of the following:
                ``(i) The agricultural commodity is sold on an 
            identity-preserved basis.
                ``(ii) All quality determinations are made solely by 
            the Federal agency designated to grade or classify the 
            agricultural commodity.
                ``(iii) All quality determinations are made in 
            accordance with standards published by the Federal agency 
            in the Federal Register.
                ``(iv) The discount schedules that reflect the 
            reduction in quality of the agricultural commodity are 
            established by the Secretary.
            ``(B) Basis for adjustment.--Under this paragraph, the 
        Corporation shall set the quality standards below which quality 
        losses will be paid based on the variability of the grade of 
        the agricultural commodity from the base quality for the 
        agricultural commodity.
        ``(3) Review of criteria and procedures.--The Corporation shall 
    contract with a qualified person to review the quality loss 
    adjustment procedures of the Corporation so that the procedures 
    more accurately reflect local quality discounts that are applied to 
    agricultural commodities insured under this title. Based on the 
    review, the Corporation shall make adjustments in the procedures, 
    taking into consideration the actuarial soundness of the adjustment 
    and the prevention of fraud, waste, and abuse.''.

SEC. 108. DOUBLE INSURANCE AND PREVENTED PLANTING.

    The Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) is amended 
by inserting after section 508 (7 U.S.C. 1508) the following:

``SEC. 508A. DOUBLE INSURANCE AND PREVENTED PLANTING.

    ``(a) Definitions.--In this section:
        ``(1) First crop.--The term `first crop' means the first crop 
    of the first agricultural commodity planted for harvest, or 
    prevented from being planted, on specific acreage during a crop 
    year and insured under this title.
        ``(2) Second crop.--The term `second crop' means a second crop 
    of the same agricultural commodity as the first crop, or a crop of 
    a different agricultural commodity following the first crop, 
    planted on the same acreage as the first crop for harvest in the 
    same crop year, except the term does not include a replanted crop.
        ``(3) Replanted crop.--The term `replanted crop' means any 
    agricultural commodity replanted on the same acreage as the first 
    crop for harvest in the same crop year if the replanting is 
    required by the terms of the policy of insurance covering the first 
    crop.
    ``(b) Double Insurance.--
        ``(1) Options on loss to first crop.--Except as provided in 
    subsections (d) and (e), if a first crop insured under this title 
    in a crop year has a total or partial insurable loss, the producer 
    of the first crop may elect one of the following options:
            ``(A) No second crop planted.--The producer may--
                ``(i) elect to not plant a second crop on the same 
            acreage for harvest in the same crop year; and
                ``(ii) collect an indemnity payment that is equal to 
            100 percent of the insurable loss for the first crop.
            ``(B) Second crop planted.--The producer may--
                ``(i) plant a second crop on the same acreage for 
            harvest in the same crop year; and
                ``(ii) collect an indemnity payment established by the 
            Corporation for the first crop, but not to exceed 35 
            percent of the insurable loss for the first crop.
        ``(2) Effect of no loss to second crop.--If a producer makes an 
    election under paragraph (1)(B) and the producer does not suffer an 
    insurable loss to the second crop, the producer may collect an 
    indemnity payment for the first crop that is equal to--
            ``(A) 100 percent of the insurable loss for the first crop; 
        less
            ``(B) the amount previously collected under paragraph 
        (1)(B)(ii).
        ``(3) Premium for first crop if second crop planted.--
            ``(A) Initial premium.--If a producer makes an election 
        under paragraph (1)(B), the producer shall be responsible for a 
        premium for the first crop that is commensurate with the 
        indemnity paid under paragraph (1)(B)(ii). The Corporation 
        shall adjust the total premium for the first crop to reflect 
        the reduced indemnity.
            ``(B) Effect of no loss to second crop.--If the producer 
        makes an election under paragraph (1)(B) and the producer does 
        not suffer an insurable loss to the second crop, the producer 
        shall be responsible for a premium for the first crop that is 
        equal to--
                ``(i) the full premium owed by the producer for the 
            first crop; less
                ``(ii) the amount of premium previously paid under 
            subparagraph (A).
    ``(c) Prevented Planting Coverage.--
        ``(1) Options on loss to first crop.--Except as provided in 
    subsections (d) and (e), if a first crop insured under this title 
    in a crop year is prevented from being planted, the producer of the 
    first crop may elect one of the following options:
            ``(A) No second crop planted.--The producer may--
                ``(i) elect to not plant a second crop on the same 
            acreage for harvest in the same crop year; and
                ``(ii) subject to paragraph (4), collect an indemnity 
            payment that is equal to 100 percent of the prevented 
            planting guarantee for the acreage for the first crop.
            ``(B) Second crop planted.--The producer may--
                ``(i) plant a second crop on the same acreage for 
            harvest in the same crop year; and
                ``(ii) subject to paragraphs (4) and (5), collect an 
            indemnity payment established by the Corporation for the 
            first crop, but not to exceed 35 percent of the prevented 
            planting guarantee for the acreage for the first crop.
        ``(2) Premium for first crop if second planted.--If the 
    producer makes an election under paragraph (1)(B), the producer 
    shall pay a premium for the first crop that is commensurate with 
    the indemnity paid under paragraph (1)(B)(ii). The Corporation 
    shall adjust the total premium for the first crop to reflect the 
    reduced indemnity.
        ``(3) Effect on actual production history.--Except in the case 
    of double cropping described in subsection (d), if a producer make 
    an election under paragraph (1)(B) for a crop year, the Corporation 
    shall assign the producer a recorded yield for that crop year for 
    the first crop equal to 60 percent of the producer's actual 
    production history for the agricultural commodity involved, for 
    purposes of determining the producer's actual production history 
    for subsequent crop years.
        ``(4) Area conditions required for payment.--The Corporation 
    shall limit prevented planting payments for producers to those 
    situations in which other producers, in the area where a first crop 
    is prevented from being planted is located, are also generally 
    affected by the conditions that prevented the first crop from being 
    planted.
        ``(5) Planting date.--If a producer plants the second crop 
    before the latest planting date established by the Corporation for 
    the first crop, the Corporation shall not make a prevented planting 
    payment with regard to the first crop.
    ``(d) Exception for Established Double Cropping Practices.--A 
producer may receive full indemnity payments on two or more crops 
planted for harvest in the same crop year and insured under this title 
if each of the following conditions are met:
        ``(1) There is an established practice of planting two or more 
    crops for harvest in the same crop year in the area, as determined 
    by the Corporation.
        ``(2) An additional coverage policy or plan of insurance is 
    offered with respect to the agricultural commodities planted on the 
    same acreage for harvest in the same crop year in the area.
        ``(3) The producer has a history of planting two or more crops 
    for harvest in the same crop year or the applicable acreage has 
    historically had two or more crops planted for harvest in the same 
    crop year.
        ``(4) The second or more crops are customarily planted after 
    the first crop for harvest on the same acreage in the same year in 
    the area.
    ``(e) Subsequent Crops.--Except in the case of double cropping 
described in subsection (d), if a producer elects to plant a crop 
(other than a replanted crop) subsequent to a second crop on the same 
acreage as the first crop and second crop for harvest in the same crop 
year, the producer shall not be eligible for insurance under this 
title, or noninsured crop assistance under section 196 of the 
Agricultural Market Transition Act (7 U.S.C. 7333), for the subsequent 
crop.''.

SEC. 109. NONINSURED CROP DISASTER ASSISTANCE PROGRAM.

    (a) Operation and Administration of Program.--Section 196(a)(2) of 
the Agricultural Market Transition Act (7 U.S.C. 7333(a)(2)) is amended 
by adding at the end the following:
            ``(C) Combination of similar types or varieties.--At the 
        option of the Secretary, all types or varieties of a crop or 
        commodity, described in subparagraphs (A) and (B), may be 
        considered to be a single eligible crop under this section.''.
    (b) Timely Application.--Section 196(b)(1) of the Agricultural 
Market Transition Act (7 U.S.C. 7333(b)(1)) is amended in the second 
sentence by striking ``at such time as the Secretary may require'' and 
inserting ``not later than 30 days before the beginning of the coverage 
period, as determined by the Secretary''.
    (c) Records and Reports.--Section 196(b) of the Agricultural Market 
Transition Act (7 U.S.C. 7333(b)) is amended--
        (1) by striking paragraph (2) and inserting the following:
        ``(2) Records.--To be eligible for assistance under this 
    section, a producer shall provide annually to the Secretary records 
    of crop acreage, acreage yields, and production for each crop, as 
    required by the Secretary.''; and
        (2) in paragraph (3), by inserting ``annual'' after ``shall 
    provide''.
    (d) Loss Requirements.--Section 196 of the Agricultural Market 
Transition Act (7 U.S.C. 7333) is amended by striking subsection (c) 
and inserting the following:
    ``(c) Loss Requirements.--
        ``(1) Cause.--To be eligible for assistance under this section, 
    a producer of an eligible crop shall have suffered a loss of a 
    noninsured commodity as the result of a cause described in 
    subsection (a)(3).
        ``(2) Assistance.--On making a determination described in 
    subsection (a)(3), the Secretary shall provide assistance under 
    this section to producers of an eligible crop that have suffered a 
    loss as a result of the cause described in subsection (a)(3).
        ``(3) Prevented planting.--Subject to paragraph (1), the 
    Secretary shall make a prevented planting noninsured crop disaster 
    assistance payment if the producer is prevented from planting more 
    than 35 percent of the acreage intended for the eligible crop 
    because of drought, flood, or other natural disaster, as determined 
    by the Secretary.
        ``(4) Area trigger.--The Secretary shall provide assistance to 
    individual producers without any requirement of an area loss.''.
    (e) Service Fee.--Section 196 of the Agricultural Market Transition 
Act (7 U.S.C. 7333) is amended by adding at the end the following:
    ``(k) Service Fee.--
        ``(1) In general.--To be eligible to receive assistance for an 
    eligible crop for a crop year under this section, a producer shall 
    pay to the Secretary (at the time at which the producer submits the 
    application under subsection (b)(1)) a service fee for the eligible 
    crop in an amount that is equal to the lesser of--
            ``(A) $100 per crop per county; or
            ``(B) $300 per producer per county, but not to exceed a 
        total of $900 per producer.
        ``(2) Waiver.--The Secretary shall waive the service fee 
    required under paragraph (1) in the case of a limited resource 
    farmer, as defined by the Secretary.
        ``(3) Use.--The Secretary shall deposit service fees collected 
    under this subsection in the Commodity Credit Corporation Fund.''.

                Subtitle B--Improving Program Integrity

SEC. 121. IMPROVING PROGRAM COMPLIANCE AND INTEGRITY.

    (a) Additional Methods of Ensuring Program Compliance and 
Integrity.--Section 515 of the Federal Crop Insurance Act (7 U.S.C. 
1514) is amended to read as follows:

``SEC. 515. PROGRAM COMPLIANCE AND INTEGRITY.

    ``(a) Purpose.--
        ``(1) In general.--The purpose of this section is to improve 
    compliance with, and the integrity of, the Federal crop insurance 
    program.
        ``(2) Role of insurance providers.--The Corporation shall work 
    actively with approved insurance providers to address program 
    compliance and integrity issues as such issues develop.
    ``(b) Notification of Compliance Problems.--
        ``(1) Notification of errors, omissions, and failures.--The 
    Corporation shall notify in writing an approved insurance provider 
    of any error, omission, or failure to follow Corporation 
    regulations or procedures for which the approved insurance provider 
    may be responsible and which may result in a debt owed the 
    Corporation.
        ``(2) Time for notification.--Notice under paragraph (1) shall 
    be given within 3 years after the end of the insurance period 
    during which the error, omission, or failure is alleged to have 
    occurred, except that this time limitation shall not apply with 
    respect to an error, omission, or procedural violation that is 
    willful or intentional.
        ``(3) Effect of failure to timely notify.--Except as provided 
    in paragraph (2), the failure to timely provide the notice required 
    under this subsection shall relieve the approved insurance provider 
    from the debt owed the Corporation.
    ``(c) Reconciling Producer Information.--The Secretary shall 
develop and implement a coordinated plan for the Corporation and the 
Farm Service Agency to reconcile all relevant information received by 
the Corporation or the Farm Service Agency from a producer who obtains 
crop insurance coverage under this title. Beginning with the 2001 crop 
year, the Secretary shall require that the Corporation and the Farm 
Service Agency reconcile such producer-derived information on at least 
an annual basis in order to identify and address any discrepancies.
    ``(d) Identification and Elimination of Fraud, Waste, and Abuse.--
        ``(1) FSA monitoring program.--The Secretary shall develop and 
    implement a coordinated plan for the Farm Service Agency to assist 
    the Corporation in the ongoing monitoring of programs carried out 
    under this title, including--
            ``(A) at the request of the Corporation or, subject to 
        paragraph (2), on its own initiative if the Farm Service Agency 
        has reason to suspect the existence of program fraud, waste, or 
        abuse, conducting fact finding relative to allegations of 
        program fraud, waste, or abuse;
            ``(B) reporting to the Corporation, in writing in a timely 
        manner, the results of any fact finding conducted pursuant to 
        subparagraph (A), any allegation of fraud, waste, or abuse, and 
        any identified program vulnerabilities; and
            ``(C) assisting the Corporation and approved insurance 
        providers in auditing a statistically appropriate number of 
        claims made under any policy or plan of insurance under this 
        title.
        ``(2) FSA inquiry.--If, within five calendar days after 
    receiving a report submitted under paragraph (1)(B), the 
    Corporation does not provide a written response that describes the 
    intended actions of the Corporation, the Farm Service Agency may 
    conduct its own inquiry into the alleged program fraud, waste, or 
    abuse on approval from the State director of the Farm Service 
    Agency of the State in which the alleged fraud, waste, or abuse 
    occurred. If as a result of the inquiry, the Farm Service Agency 
    concludes further investigation is warranted, but the Corporation 
    declines to proceed with the investigation, the Farm Service Agency 
    may refer the matter to the Inspector General of the Department of 
    Agriculture.
        ``(3) Use of field infrastructure.--The plan required by 
    paragraph (1) shall provide for the use of the field infrastructure 
    of the Farm Service Agency. The Secretary shall ensure that 
    relevant Farm Service Agency personnel are appropriately trained 
    for any responsibilities assigned to the personnel under the plan. 
    At a minimum, the personnel shall receive the same level of 
    training and pass the same basic competency tests as required of 
    loss adjusters of approved insurance providers.
        ``(4) Maintenance of provider effort.--
            ``(A) In general.--The activities of the Farm Service 
        Agency under this subsection do not affect the responsibility 
        of approved insurance providers to conduct any audits of claims 
        or other program reviews required by the Corporation.
            ``(B) Notification of providers.--The Corporation shall 
        notify the appropriate approved insurance provider of a report 
        from the Farm Service Agency regarding alleged program fraud, 
        waste, or abuse, unless the provider is suspected to be 
        included in, or a party to, the alleged fraud, waste, or abuse.
            ``(C) Response.--An approved insurance provider that 
        receives a notice under subparagraph (B) shall submit a report 
        to the Corporation, within an appropriate time period 
        determined by the Secretary, describing the actions taken by 
        the provider to investigate the allegations of program fraud, 
        waste, or abuse contained in the notice.
        ``(5) Corporation response to provider reports.--
            ``(A) Prompt response.--If an approved insurance provider 
        reports to the Corporation that the approved insurance provider 
        suspects intentional misrepresentation, fraud, waste, or abuse, 
        the Corporation shall make a determination and provide, within 
        90 calendar days after receiving the report, a written response 
        that describes the intended actions of the Corporation.
            ``(B) Cooperative effort.--The approved insurance provider 
        and the Corporation shall take coordinated action in any case 
        where misrepresentation, fraud, waste, or abuse is alleged.
            ``(C) Failure to timely respond.--If the Corporation fails 
        to respond as required by subparagraph (A), an approved 
        insurance provider may request the Farm Service Agency to 
        assist the provider in an inquiry into the alleged program 
        fraud, waste, or abuse.
    ``(e) Consultation with State FSA Committees.--The Secretary shall 
establish procedures under which the Corporation shall consult with the 
State committee of the Farm Service Agency for a State with respect to 
policies, plans of insurance, and material related to such policies or 
plans of insurance (including applicable sales closing dates, assigned 
yields, and transitional yields) offered in that State under this 
title.
    ``(f) Detection of Disparate Performance.--
        ``(1) Covered activities.--The Secretary shall establish 
    procedures under which the Corporation will be able to identify the 
    following:
            ``(A) Any agent engaged in the sale of coverage offered 
        under this title where the loss claims associated with such 
        sales by the agent are equal to or greater than 150 percent (or 
        an appropriate percentage specified by the Corporation) of the 
        mean for all loss claims associated with such sales by all 
        other agents operating in the same area, as determined by the 
        Corporation.
            ``(B) Any person performing loss adjustment services 
        relative to coverage offered under this title where such loss 
        adjustments performed by the person result in accepted or 
        denied claims equal to or greater than 150 percent (or an 
        appropriate percentage specified by the Corporation) of the 
        mean for accepted or denied claims (as applicable) for all 
        other persons performing loss adjustment services in the same 
        area, as determined by the Corporation.
        ``(2) Review.--
            ``(A) Review required.--The Corporation shall conduct a 
        review of any agent identified pursuant to paragraph (1)(A), 
        and any person identified pursuant to paragraph (1)(B), to 
        determine whether the higher loss claims associated with the 
        agent or the higher number of accepted or denied claims (as 
        applicable) associated with the person are the result of fraud, 
        waste, or abuse.
            ``(B) Remedial action.--The Corporation shall take 
        appropriate remedial action with respect to any occurrence of 
        fraud, waste, or abuse identified in a review conducted under 
        this paragraph.
        ``(3) Oversight of agents and loss adjusters.--The Corporation 
    shall develop procedures to require an annual review by an approved 
    insurance provider of the performance of each agent and loss 
    adjuster used by the approved insurance provider. The Corporation 
    shall oversee the conduct of annual reviews and may consult with an 
    approved insurance provider regarding any remedial action that is 
    determined to be necessary as a result of the annual review of an 
    agent or loss adjuster.
    ``(g) Submission of Information to Corporation to Support 
Compliance Efforts.--
        ``(1) Types of information required.--The Secretary shall 
    establish procedures under which approved insurance providers shall 
    submit to the Corporation the following information with respect to 
    each policy or plan of insurance offered under this title:
            ``(A) The name and identification number of the insured.
            ``(B) The agricultural commodity to be insured.
            ``(C) The elected coverage level, including the price 
        election, of the insured.
        ``(2) Time for submission.--The information required by 
    paragraph (1) with respect to a policy or plan of insurance shall 
    be submitted so as to ensure receipt by the Corporation not later 
    than the Saturday of the week containing the calendar day that is 
    30 days after the applicable sales closing date for the crop to be 
    insured.
    ``(h) Sanctions for Program Noncompliance and Fraud.--
        ``(1) False information.--A producer, agent, loss adjuster, 
    approved insurance provider, or other person that willfully and 
    intentionally provides any false or inaccurate information to the 
    Corporation or to an approved insurance provider with respect to a 
    policy or plan of insurance under this title may, after notice and 
    an opportunity for a hearing on the record, be subject to one or 
    more of the sanctions described in paragraph (3).
        ``(2) Compliance.--A person may, after notice and an 
    opportunity for a hearing on the record, be subject to one or more 
    of the sanctions described in paragraph (3) if the person is a 
    producer, agent, loss adjuster, approved insurance provider, or 
    other person that willfully and intentionally fails to comply with 
    a requirement of the Corporation.
        ``(3) Authorized sanctions.--If the Secretary determines that a 
    person covered by this subsection has committed a material 
    violation under paragraph (1) or (2), the following sanctions may 
    be imposed:
            ``(A) Civil fines.--A civil fine may be imposed for each 
        violation in an amount not to exceed the greater of--
                ``(i) the amount of the pecuniary gain obtained as a 
            result of the false or inaccurate information provided or 
            the noncompliance with a requirement of this title; or
                ``(ii) $10,000.
            ``(B) Producer disqualification.--In the case of a 
        violation committed by a producer, the producer may be 
        disqualified for a period of up to 5 years from receiving any 
        monetary or nonmonetary benefit provided under each of the 
        following:
                ``(i) This title.
                ``(ii) The Agricultural Market Transition Act (7 U.S.C. 
            7201 et seq.), including the noninsured crop disaster 
            assistance program under section 196 of that Act (7 U.S.C. 
            7333).
                ``(iii) The Agricultural Act of 1949 (7 U.S.C. 1421 et 
            seq.).
                ``(iv) The Commodity Credit Corporation Charter Act (15 
            U.S.C. 714 et seq.).
                ``(v) The Agricultural Adjustment Act of 1938 (7 U.S.C. 
            1281 et seq.).
                ``(vi) Title XII of the Food Security Act of 1985 (16 
            U.S.C. 3801 et seq.).
                ``(vii) The Consolidated Farm and Rural Development Act 
            (7 U.S.C. 1921 et seq.).
                ``(viii) Any law that provides assistance to a producer 
            of an agricultural commodity affected by a crop loss or a 
            decline in the prices of agricultural commodities.
            ``(C) Disqualification of other persons.--In the case of a 
        violation committed by an agent, loss adjuster, approved 
        insurance provider, or other person (other than a producer), 
        the violator may be disqualified for a period of up to 5 years 
        from participating in any program, or receiving any benefit, 
        under this title.
        ``(4) Assessment of sanction.--The Secretary shall consider the 
    gravity of the violation of the person covered by this subsection 
    in determining--
            ``(A) whether to impose a sanction under this subsection; 
        and
            ``(B) the type and amount of the sanction to be imposed.
        ``(5) Disclosure of sanctions.--Each policy or plan of 
    insurance under this title shall provide notice describing the 
    sanctions prescribed under paragraph (3) for willfully and 
    intentionally--
            ``(A) providing false or inaccurate information to the 
        Corporation or to an approved insurance provider; or
            ``(B) failing to comply with a requirement of the 
        Corporation.
        ``(6) Insurance fund.--Any funds collected under this 
    subsection shall be deposited into the insurance fund established 
    under section 516(c).
    ``(i) Annual Report on Program Compliance and Integrity Efforts.--
        ``(1) Report required.--The Secretary shall submit to the 
    Committee on Agriculture of the House of Representatives and the 
    Committee on Agriculture, Nutrition, and Forestry of the Senate an 
    annual report describing the operation of this section during the 
    preceding year and efforts undertaken by the Secretary and the 
    Corporation to carry out this section.
        ``(2) Information regarding fraud, waste, and abuse.--The 
    report shall identify specific occurrences of waste, fraud, or 
    abuse and contain an outline of actions that have been or are being 
    taken to eliminate the identified waste, fraud, or abuse.
    ``(j) Information Management.--
        ``(1) Systems upgrades.--The Secretary shall upgrade the 
    information management systems of the Corporation used in the 
    administration and enforcement and this title. In upgrading the 
    systems, the Secretary shall ensure that new hardware and software 
    are compatible with the hardware and software used by other 
    agencies of the Department to maximize data sharing and promote the 
    purpose of this section.
        ``(2) Use of available information technologies.--The Secretary 
    shall use the information technologies known as data mining and 
    data warehousing and other available information technologies to 
    administer and enforce this title.
        ``(3) Use of private sector.--The Secretary may enter into 
    contracts to use private sector expertise and technological 
    resources in implementing this subsection.
    ``(k) Funding.--
        ``(1) Available funds.--To carry out this section and sections 
    502(c), 506(h), 508(a)(3)(B), and 508(f)(3)(A), the Corporation may 
    use, from amounts made available from the insurance fund 
    established under section 516(c), not more than $23,000,000 during 
    the period of fiscal years 2001 through 2005, of which not more 
    than $9,000,000 shall be available for fiscal year 2001.
        ``(2) Prohibition.--None of the funds made available under 
    paragraph (1) may be used to pay the salaries of employees of the 
    Corporation.''.
    (b) Conforming Amendment.--Section 506 of the Federal Crop 
Insurance Act (7 U.S.C. 1506) is amended--
        (1) by striking subsection (q); and
        (2) by redesignating subsections (r) and (s) as subsections (q) 
    and (r), respectively.

SEC. 122. PROTECTION OF CONFIDENTIAL INFORMATION.

    Section 502 of the Federal Crop Insurance Act (7 U.S.C. 1502) is 
amended by adding at the end the following:
    ``(c) Protection of Confidential Information.--
        ``(1) General prohibition against disclosure.--Except as 
    provided in paragraph (2), the Secretary, any other officer or 
    employee of the Department or an agency thereof, an approved 
    insurance provider and its employees and contractors, and any other 
    person may not disclose to the public information furnished by a 
    producer under this title.
        ``(2) Authorized disclosure.--
            ``(A) Disclosure in statistical or aggregate form.--
        Information described in paragraph (1) may be disclosed to the 
        public if the information has been transformed into a 
        statistical or aggregate form that does not allow the 
        identification of the person who supplied particular 
        information.
            ``(B) Consent of producer.--A producer may consent to the 
        disclosure of information described in paragraph (1). The 
        participation of the producer in, and the receipt of any 
        benefit by the producer under, this title or any other program 
        administered by the Secretary may not be conditioned on the 
        producer providing consent under this paragraph.
        ``(3) Violations; penalties.--Section 1770(c) of the Food 
    Security Act of 1985 (7 U.S.C. 2276(c)) shall apply with respect to 
    the release of information collected in any manner or for any 
    purpose prohibited by this subsection.''.

SEC. 123. GOOD FARMING PRACTICES.

    Section 508(a) of the Federal Crop Insurance Act (7 U.S.C. 1508(a)) 
is amended by striking paragraph (3) and inserting the following:
        ``(3) Exclusion of losses due to certain actions of producer.--
            ``(A) Exclusions.--Insurance provided under this subsection 
        shall not cover losses due to--
                ``(i) the neglect or malfeasance of the producer;
                ``(ii) the failure of the producer to reseed to the 
            same crop in such areas and under such circumstances as it 
            is customary to reseed; or
                ``(iii) the failure of the producer to follow good 
            farming practices, including scientifically sound 
            sustainable and organic farming practices.
            ``(B) Good farming practices.--
                ``(i) Informal administrative process.--A producer 
            shall have the right to a review of a determination 
            regarding good farming practices made under subparagraph 
            (A)(iii) in accordance with an informal administrative 
            process to be established by the Corporation.
                ``(ii) Administrative review.--

                    ``(I) No adverse decision.--The determination shall 
                not be considered an adverse decision for purposes of 
                subtitle H of the Department of Agriculture 
                Reorganization Act of 1994 (7 U.S.C. 6991 et seq.).
                    ``(II) Reversal or modification.--Except as 
                provided in clause (i), the determination may not be 
                reversed or modified as the result of a subsequent 
                administrative review.

                ``(iii) Judicial review.--

                    ``(I) Right to review.--A producer shall have the 
                right to judicial review of the determination without 
                exhausting any right to a review under clause (i).
                    ``(II) Reversal or modification.--The determination 
                may not be reversed or modified as the result of 
                judicial review unless the determination is found to be 
                arbitrary or capricious.''.

SEC. 124. RECORDS AND REPORTING.

    (a) Condition of Obtaining Coverage.--Section 508(f)(3) of the 
Federal Crop Insurance Act (7 U.S.C. 1508(f)(3)) is amended by striking 
subparagraph (A) and inserting the following:
            ``(A) provide annually records acceptable to the Secretary 
        regarding crop acreage, acreage yields, and production for each 
        agricultural commodity insured under this title or accept a 
        yield determined by the Corporation; and''.
    (b) Additional General Power.--Section 506 of the Federal Crop 
Insurance Act (7 U.S.C. 1506) is amended by striking subsection (h) and 
inserting the following:
    ``(h) Collection and Sharing of Information.--
        ``(1) Surveys and investigations.--The Corporation may conduct 
    surveys and investigations relating to crop insurance, agriculture-
    related risks and losses, and other issues related to carrying out 
    this title.
        ``(2) Data collection.--The Corporation shall assemble data for 
    the purpose of establishing sound actuarial bases for insurance on 
    agricultural commodities.
        ``(3) Sharing of records.--Notwithstanding section 502(c), 
    records submitted in accordance with this title and section 196 of 
    the Agricultural Market Transition Act (7 U.S.C. 7333) shall be 
    available to agencies and local offices of the Department, 
    appropriate State and Federal agencies and divisions, and approved 
    insurance providers for use in carrying out this title, such 
    section 196, and other agricultural programs.''.

                Subtitle C--Research and Pilot Programs

SEC. 131. RESEARCH AND DEVELOPMENT.

    The Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) is amended 
by adding at the end the following:

``SEC. 522. RESEARCH AND DEVELOPMENT.

    ``(a) Definition of Policy.--In this section, the term `policy' 
means a policy, plan of insurance, provision of a policy or plan of 
insurance, and related materials.
    ``(b) Reimbursement of Research, Development, and Maintenance 
Costs.--
        ``(1) Research and development reimbursement.--The Corporation 
    shall provide a payment to reimburse an applicant for research and 
    development costs directly related to a policy that is--
            ``(A) submitted to the Board and approved by the Board 
        under section 508(h) for reinsurance; and
            ``(B) if applicable, offered for sale to producers.
        ``(2) Existing plans.--The Corporation shall reimburse costs 
    associated with research and development costs directly related to 
    a policy that was approved by the Board prior to the date of the 
    enactment of this section.
        ``(3) Marketability.--The Corporation shall approve a 
    reimbursement under paragraph (1) or (2) only after determining 
    that the policy is marketable based on a reasonable marketing plan, 
    as determined by the Board.
        ``(4) Maintenance payments.--
            ``(A) Requirement.--The Corporation shall reimburse 
        maintenance costs associated with the annual cost of 
        underwriting for a policy described in paragraphs (1) and (2).
            ``(B) Duration.--Payments with respect to maintenance costs 
        may be provided for a period of not more than four reinsurance 
        years subsequent to Board approval for payment under this 
        subsection.
            ``(C) Options for maintenance.--On the expiration of the 4-
        year period described in subparagraph (B), the approved 
        insurance provider responsible for maintenance of the policy 
        may--
                ``(i) maintain the policy and charge a fee to approved 
            insurance providers that elect to sell the policy under 
            this subsection; or
                ``(ii) transfer responsibility for maintenance of the 
            policy to the Corporation.
            ``(D) Fee.--
                ``(i) Amount.--Subject to approval by the Board, the 
            amount of the fee that is payable by an approved insurance 
            provider that elects to sell the policy shall be an amount 
            that is determined by the approved insurance provider 
            maintaining the policy.
                ``(ii) Approval.--The Board shall approve the amount of 
            a fee determined under clause (i) for maintenance of the 
            policy unless the Board determines that the amount of the 
            fee--

                    ``(I) is unreasonable in relation to the 
                maintenance costs associated with the policy; or
                    ``(II) unnecessarily inhibits the use of the 
                policy.

        ``(5) Treatment of payment.--Payments made under this 
    subsection for a policy shall be considered as payment in full by 
    the Corporation for the research and development conducted with 
    regard to the policy and any property rights to the policy.
        ``(6) Reimbursement amount.--The Corporation shall determine 
    the amount of the payment under this subsection for an approved 
    policy based on the complexity of the policy and the size of the 
    area in which the policy or material is expected to be sold.
    ``(c) Research and Development Contracting Authority.--
        ``(1) Authority.--The Corporation may enter into contracts to 
    carry out research and development to--
            ``(A) increase participation in States in which the 
        Corporation determines that--
                ``(i) there is traditionally, and continues to be, a 
            low level of Federal crop insurance participation and 
            availability; and
                ``(ii) the State is underserved by the Federal crop 
            insurance program;
            ``(B) increase participation in areas that are underserved 
        by the Federal crop insurance program; and
            ``(C) increase participation by producers of underserved 
        agricultural commodities, including specialty crops.
        ``(2) Underserved agricultural commodities and areas.--
            ``(A) Authority.--The Corporation may enter into contracts 
        under procedures prescribed by the Corporation with qualified 
        persons to carry out research and development for policies that 
        promote the purposes of paragraph (1).
            ``(B) Consultation.--Before entering into a contract under 
        subparagraph (A), the Corporation shall consult with groups 
        representing producers of agricultural commodities that would 
        be served by the policies that are the subject of the research 
        and development.
        ``(3) Qualified persons.--A person with experience in crop 
    insurance or farm or ranch risk management (including a college or 
    university, an approved insurance provider, and a trade or research 
    organization), as determined by the Corporation, shall be eligible 
    to enter into a contract with the Corporation under this 
    subsection.
        ``(4) Types of contracts.--A contract under this subsection may 
    provide for research and development regarding new or expanded 
    policies, including policies based on adjusted gross income, cost-
    of-production, quality losses, and an intermediate base program 
    with a higher coverage and cost than catastrophic risk protection.
        ``(5) Use of resulting policies.--The Corporation may offer any 
    policy developed under this subsection that is approved by the 
    Board.
        ``(6) Research and development priorities.--The Corporation 
    shall establish as one of the highest research and development 
    priorities of the Corporation the development of a pasture, range, 
    and forage program.
        ``(7) Study of multiyear coverage.--
            ``(A) In general.--The Corporation shall contract with a 
        qualified person to conduct a study to determine whether 
        offering policies that provide coverage for multiple years 
        would reduce fraud, waste, and abuse by persons that 
        participate in the Federal crop insurance program.
            ``(B) Report.--Not later than 1 year after the date of the 
        enactment of this section, the Corporation shall submit to the 
        Committee on Agriculture of the House of Representatives and 
        the Committee on Agriculture, Nutrition, and Forestry of the 
        Senate a report that describes the results of the study 
        conducted under subparagraph (A).
        ``(8) Contract for revenue coverage plans.--The Corporation 
    shall enter into a contract for research and development regarding 
    one or more revenue coverage plans that are designed to enable 
    producers to take maximum advantage of fluctuations in market 
    prices and thereby maximize revenue realized from the sale of an 
    agricultural commodity. A revenue coverage plan may include the use 
    of existing market instruments or the development of new market 
    instruments. Not later than 15 months after the date of the 
    enactment of this section, the Corporation shall submit to the 
    Committee on Agriculture of the House of Representatives and the 
    Committee on Agriculture, Nutrition, and Forestry of the Senate a 
    report that describes the results of the contract entered into 
    under this paragraph.
        ``(9) Contract for cost of production policy.--
            ``(A) Authority.--The Corporation shall enter into a 
        contract for research and development regarding a cost of 
        production policy.
            ``(B) Research and development.--The research and 
        development shall--
                ``(i) take into consideration the differences in the 
            cost of production on a county-by-county basis; and
                ``(ii) cover as many commodities as is practicable.
        ``(10) Relation to limitations.--A policy developed under this 
    subsection may be prepared without regard to the limitations of 
    this title, including--
            ``(A) the requirement concerning the levels of coverage and 
        rates; and
            ``(B) the requirement that the price level for each insured 
        agricultural commodity must equal the expected market price for 
        the agricultural commodity, as established by the Board.
    ``(d) Partnerships for Risk Management Development and 
Implementation.--
        ``(1) Purpose.--The purpose of this subsection is to authorize 
    the Corporation to enter into partnerships with public and private 
    entities for the purpose of increasing the availability of loss 
    mitigation, financial, and other risk management tools for 
    producers, with a priority given to risk management tools for 
    producers of agricultural commodities covered by section 196 of the 
    Agricultural Market Transition Act (7 U.S.C. 7333), specialty 
    crops, and underserved agricultural commodities.
        ``(2) Authority.--The Corporation may enter into partnerships 
    with the Cooperative State Research, Education, and Extension 
    Service, the Agricultural Research Service, the National Oceanic 
    Atmospheric Administration, and other appropriate public and 
    private entities with demonstrated capabilities in developing and 
    implementing risk management and marketing options for producers of 
    specialty crops and underserved agricultural commodities.
        ``(3) Objectives.--The Corporation may enter into a partnership 
    under paragraph (2)--
            ``(A) to enhance the notice and timeliness of notice of 
        weather conditions that could negatively affect crop yields, 
        quality, and final product use in order to allow producers to 
        take preventive actions to increase end product profitability 
        and marketability and to reduce the possibility of crop 
        insurance claims;
            ``(B) to develop a multifaceted approach to pest management 
        and fertilization to decrease inputs, decrease environmental 
        exposure, and increase application efficiency;
            ``(C) to develop or improve techniques for planning, 
        breeding, planting, growing, maintaining, harvesting, storing, 
        shipping, and marketing that will address quality and quantity 
        challenges associated with year-to-year and regional 
        variations;
            ``(D) to clarify labor requirements and assist producers in 
        complying with requirements to better meet the physically 
        intense and time-compressed planting, tending, and harvesting 
        requirements associated with the production of specialty crops 
        and underserved agricultural commodities;
            ``(E) to provide assistance to State foresters or 
        equivalent officials for the prescribed use of burning on 
        private forest land for the prevention, control, and 
        suppression of fire;
            ``(F) to provide producers with training and informational 
        opportunities so that the producers will be better able to use 
        financial management, crop insurance, marketing contracts, and 
        other existing and emerging risk management tools; and
            ``(G) to develop other risk management tools to further 
        increase economic and production stability.
    ``(e) Funding.--
        ``(1) Reimbursements.--Of the amounts made available from the 
    insurance fund established under section 516(c), the Corporation 
    may use to provide reimbursements under subsection (b) not more 
    than $10,000,000 for each of fiscal years 2001 and 2002 and not 
    more than $15,000,000 for fiscal year 2003 and each subsequent 
    fiscal year.
        ``(2) Contracting.--
            ``(A) Authority.--Of the amounts made available from the 
        insurance fund established under section 516(c), the 
        Corporation may use to carry out contracting and partnerships 
        under subsections (c) and (d) not more than $20,000,000 for 
        each of fiscal years 2001 through 2003 and not more than 
        $25,000,000 for fiscal year 2004 and each subsequent fiscal 
        year.
            ``(B) Underserved states.--Of the amount made available 
        under subparagraph (A) for a fiscal year, the Corporation shall 
        use not more than $5,000,000 for the fiscal year to carry out 
        contracting for research and development to carry out the 
        purpose described in subsection (c)(1)(A).
        ``(3) Unused funding.--If the Corporation determines that the 
    amount available to provide either reimbursement payments or 
    contract payments under this section for a fiscal year is not 
    needed for such purposes, the Corporation may use the excess amount 
    to carry out another function authorized under this section.
        ``(4) Prohibited research and development by corporation.--
            ``(A) New policies.--Notwithstanding subsection (d), on and 
        after October 1, 2000, the Corporation shall not conduct 
        research and development for any new policy for an agricultural 
        commodity offered under this title.
            ``(B) Existing policies.--Any policy developed by the 
        Corporation under this title before that date may continue to 
        be offered for sale to producers.''.

SEC. 132. PILOT PROGRAMS.

    (a) Authority.--The Federal Crop Insurance Act (7 U.S.C. 1501 et 
seq.), as amended by section 131, is amended by adding at the end the 
following:

``SEC. 523. PILOT PROGRAMS.

    ``(a) General Provisions.--
        ``(1) Authority.--Except as otherwise provided in this section, 
    the Corporation may conduct a pilot program submitted to and 
    approved by the Board under section 508(h), or that is developed 
    under subsection (b) or section 522, to evaluate whether a proposal 
    or new risk management tool tested by the pilot program is suitable 
    for the marketplace and addresses the needs of producers of 
    agricultural commodities.
        ``(2) Private coverage.--Under this section, the Corporation 
    shall not conduct any pilot program that provides insurance 
    protection against a risk if insurance protection against the risk 
    is generally available from private companies.
        ``(3) Covered activities.--The pilot programs described in 
    paragraph (1) may include pilot programs providing insurance 
    protection against losses involving--
            ``(A) reduced forage on rangeland caused by drought or 
        insect infestation;
            ``(B) livestock poisoning and disease;
            ``(C) destruction of bees due to the use of pesticides;
            ``(D) unique special risks related to fruits, nuts, 
        vegetables, and specialty crops in general, aquacultural 
        species, and forest industry needs (including appreciation);
            ``(E) after October 1, 2001, wild salmon, except that--
                ``(i) any pilot program with regard to wild salmon may 
            be carried out without regard to the limitations of this 
            title; and
                ``(ii) the Corporation shall conduct all wild salmon 
            programs under this title so that, to the maximum extent 
            practicable, all costs associated with conducting the 
            programs are not expected to exceed $1,000,000 for fiscal 
            year 2002 and each subsequent fiscal year.
        ``(4) Scope of pilot programs.--The Corporation may--
            ``(A) approve a pilot program under this section to be 
        conducted on a regional, State, or national basis after 
        considering the interests of affected producers and the 
        interests of, and risks to, the Corporation;
            ``(B) operate the pilot program, including any 
        modifications of the pilot program, for a period of up to 4 
        years;
            ``(C) extend the time period for the pilot program for 
        additional periods, as determined appropriate by the 
        Corporation; and
            ``(D) provide pilot programs that would allow producers--
                ``(i) to receive a reduced premium for using whole farm 
            units or single crop units of insurance; and
                ``(ii) to cross State and county boundaries to form 
            insurable units.
        ``(5) Evaluation.--
            ``(A) Requirement.--After the completion of any pilot 
        program under this section, the Corporation shall evaluate the 
        pilot program and submit to the Committee on Agriculture of the 
        House of Representatives and the Committee on Agriculture, 
        Nutrition, and Forestry of the Senate a report on the 
        operations of the pilot program.
            ``(B) Evaluation and recommendations.--The report shall 
        include an evaluation by the Corporation of the pilot program 
        and the recommendations of the Corporation with respect to 
        implementing the program on a national basis.
    ``(b) Livestock Pilot Programs.--
        ``(1) Definition of livestock.--In this subsection, the term 
    `livestock' includes, but is not limited to, cattle, sheep, swine, 
    goats, and poultry.
        ``(2) Programs required.--Subject to paragraph (7), the 
    Corporation shall conduct two or more pilot programs to evaluate 
    the effectiveness of risk management tools for livestock producers, 
    including the use of futures and options contracts and policies and 
    plans of insurance that protect the interests of livestock 
    producers and that provide--
            ``(A) livestock producers with reasonable protection from 
        the financial risks of price or income fluctuations inherent in 
        the production and marketing of livestock; or
            ``(B) protection for production losses.
        ``(3) Purpose of programs.--To the maximum extent practicable, 
    the Corporation shall evaluate the greatest number and variety of 
    pilot programs described in paragraph (2) to determine which of the 
    offered risk management tools are best suited to protect livestock 
    producers from the financial risks associated with the production 
    and marketing of livestock.
        ``(4) Timing.--The Corporation shall begin conducting livestock 
    pilot programs under this subsection during fiscal year 2001.
        ``(5) Relation to other limitations.--Any policy or plan of 
    insurance offered under this subsection may be prepared without 
    regard to the limitations of this title.
        ``(6) Assistance.--As part of a pilot program under this 
    subsection, the Corporation may provide reinsurance for policies or 
    plans of insurance and subsidize the purchase of futures and 
    options contracts or policies and plans of insurance offered under 
    the pilot program.
        ``(7) Private insurance.--No action may be undertaken with 
    respect to a risk under this subsection if the Corporation 
    determines that insurance protection for livestock producers 
    against the risk is generally available from private companies.
        ``(8) Location.--The Corporation shall conduct the livestock 
    pilot programs under this subsection in a number of counties that 
    is determined by the Corporation to be adequate to provide a 
    comprehensive evaluation of the feasibility, effectiveness, and 
    demand among producers for the risk management tools evaluated in 
    the pilot programs.
        ``(9) Eligible producers.--Any producer of a type of livestock 
    covered by a pilot program under this subsection that owns or 
    operates a farm or ranch in a county selected as a location for 
    that pilot program shall be eligible to participate in that pilot 
    program.
        ``(10) Limitation on expenditures.--The Corporation shall 
    conduct all livestock programs under this title so that, to the 
    maximum extent practicable, all costs associated with conducting 
    the livestock programs (other than research and development costs 
    covered by section 522) are not expected to exceed the following:
            ``(A) $10,000,000 for each of fiscal years 2001 and 2002.
            ``(B) $15,000,000 for fiscal year 2003.
            ``(C) $20,000,000 for fiscal year 2004 and each subsequent 
        fiscal year.
    ``(c) Revenue Insurance Pilot Program.--
        ``(1) In general.--Subject to section 522(e)(4), the Secretary 
    shall carry out a pilot program in a limited number of counties, as 
    determined by the Secretary, for crop years 1997 through 2001, 
    under which a producer of wheat, feed grains, soybeans, or such 
    other commodity as the Secretary considers appropriate may elect to 
    receive insurance against loss of revenue, as determined by the 
    Secretary.
        ``(2) Administration.--Revenue insurance under this subsection 
    shall--
            ``(A) be offered through reinsurance arrangements with 
        private insurance companies;
            ``(B) offer at least a minimum level of coverage that is an 
        alternative to catastrophic crop insurance;
            ``(C) be actuarially sound; and
            ``(D) require the payment of premiums and administrative 
        fees by an insured producer.
    ``(d) Premium Rate Reduction Pilot Program.--
        ``(1) Purpose.--The purpose of the pilot program established 
    under this subsection is to determine whether approved insurance 
    providers will compete to market policies or plans of insurance 
    with reduced rates of premium, in a manner that maintains the 
    financial soundness of approved insurance providers and is 
    consistent with the integrity of the Federal crop insurance 
    program.
        ``(2) Establishment.--
            ``(A) In general.--Beginning with the 2002 crop year, the 
        Corporation shall establish a pilot program under which 
        approved insurance providers may propose for approval by the 
        Board policies or plans of insurance with reduced rates of 
        premium--
                ``(i) for one or more agricultural commodities; and
                ``(ii) within a limited geographic area, as proposed by 
            the approved insurance provider and approved by the Board.
            ``(B) Determination by board.--The Board shall approve a 
        policy or plan of insurance proposed under this subsection that 
        involves a premium reduction if the Board determines that--
                ``(i) the interests of producers are adequately 
            protected within the pilot area;
                ``(ii) rates of premium are actuarially appropriate, as 
            determined by the Board;
                ``(iii) the size of the proposed pilot area is 
            adequate;
                ``(iv) the proposed policy or plan of insurance would 
            not unfairly discriminate among producers within the 
            proposed pilot area;
                ``(v) if the proposed policy or plan of insurance were 
            available in a geographic area larger than the proposed 
            pilot area, the proposed policy or plan of insurance 
            would--

                    ``(I) not have a significant adverse impact on the 
                crop insurance delivery system;
                    ``(II) not result in a reduction of program 
                integrity;
                    ``(III) be actuarially appropriate; and
                    ``(IV) not place an additional financial burden on 
                the Federal Government; and

                ``(vi) the proposed policy or plan of insurance meets 
            other requirements of this title determined appropriate by 
            the Board.
            ``(C) Time limitations and procedures.--The time 
        limitations and procedures of the Board established under 
        section 508(h) shall apply to a proposal submitted under this 
        subsection.''.
    (b) Conforming Amendments.--Section 518 of the Federal Crop 
Insurance Act (7 U.S.C. 1518) is amended--
        (1) by striking ``livestock and'' after ``commodity, 
    excluding''; and
        (2) by striking ``under subsection (a) or (m) of section 508 of 
    this title''.

SEC. 133. EDUCATION AND RISK MANAGEMENT ASSISTANCE.

    The Federal Crop Insurance Act (7 U.S.C. 1501 et seq.), as amended 
by section 132(a), is amended by adding at the end the following:

``SEC. 524. EDUCATION AND RISK MANAGEMENT ASSISTANCE.

    ``(a) Education Assistance.--
        ``(1) In general.--Subject to the amounts made available under 
    paragraph (4)--
            ``(A) the Corporation shall carry out the program 
        established under paragraph (2); and
            ``(B) the Secretary, acting through the Cooperative State 
        Research, Education, and Extension Service, shall carry out the 
        program established under paragraph (3).
        ``(2) Education and information.--The Corporation shall 
    establish a program under which crop insurance education and 
    information is provided to producers in States in which (as 
    determined by the Secretary)--
            ``(A) there is traditionally, and continues to be, a low 
        level of Federal crop insurance participation and availability; 
        and
            ``(B) producers are underserved by the Federal crop 
        insurance program.
        ``(3) Partnerships for risk management education.--
            ``(A) Authority.--The Secretary, acting through the 
        Cooperative State Research, Education, and Extension Service, 
        shall establish a program under which competitive grants are 
        made to qualified public and private entities (including land 
        grant colleges, cooperative extension services, and colleges or 
        universities), as determined by the Secretary, for the purpose 
        of educating agricultural producers about the full range of 
        risk management activities, including futures, options, 
        agricultural trade options, crop insurance, cash forward 
        contracting, debt reduction, production diversification, farm 
        resources risk reduction, and other risk management strategies.
            ``(B) Basis for grants.--A grant under this paragraph shall 
        be awarded on the basis of merit and shall be subject to peer 
        or merit review.
            ``(C) Obligation period.--Funds for a grant under this 
        paragraph shall be available to the Secretary for obligation 
        for a 2-year period.
            ``(D) Administrative costs.--The Secretary may use not more 
        than 4 percent of the funds made available for grants under 
        this paragraph for administrative costs incurred by the 
        Secretary in carrying out this paragraph.
        ``(4) Funding.--From the insurance fund established under 
    section 516(c), there is transferred--
            ``(A) for the education and information program established 
        under paragraph (2), $5,000,000 for fiscal year 2001 and each 
        subsequent fiscal year; and
            ``(B) for the partnerships for risk management education 
        program established under paragraph (3), $5,000,000 for fiscal 
        year 2001 and each subsequent fiscal year.
    ``(b) Agricultural Management Assistance.--
        ``(1) Authority.--The Secretary shall provide cost share 
    assistance to producers, in a manner determined by the Secretary, 
    in not less than 10, nor more than 15, States in which 
    participation in the Federal crop insurance program is historically 
    low, as determined by the Secretary.
        ``(2) Uses.--A producer may use cost share assistance provided 
    under this subsection to--
            ``(A) construct or improve--
                ``(i) watershed management structures; or
                ``(ii) irrigation structures;
            ``(B) plant trees to form windbreaks or to improve water 
        quality;
            ``(C) mitigate financial risk through production 
        diversification or resource conservation practices, including--
                ``(i) soil erosion control;
                ``(ii) integrated pest management; or
                ``(iii) transition to organic farming;
            ``(D) enter into futures, hedging, or options contracts in 
        a manner designed to help reduce production, price, or revenue 
        risk;
            ``(E) enter into agricultural trade options as a hedging 
        transaction to reduce production, price, or revenue risk; or
            ``(F) conduct any other activity related to the activities 
        described in subparagraphs (A) through (E), as determined by 
        the Secretary.
        ``(2) Payment limitation.--The total amount of payments made to 
    a person (as defined in section 1001(5) of the Food Security Act (7 
    U.S.C. 1308(5))) under this subsection for any year may not exceed 
    $50,000.
        ``(3) Commodity credit corporation.--
            ``(A) In general.--The Secretary shall carry out this 
        subsection through the Commodity Credit Corporation.
            ``(B) Funding.--The Commodity Credit Corporation shall make 
        available to carry out this subsection $10,000,000 for fiscal 
        year 2001 and each subsequent fiscal year.''.

SEC. 134. OPTIONS PILOT PROGRAM.

    Section 191 of the Agricultural Market Transition Act (7 U.S.C. 
7331) is amended--
        (1) in the first sentence of subsection (b), by striking ``100 
    counties, except that not more than 6'' and inserting ``300 
    counties, except that not more than 25'';
        (2) in subsection (c)(2), by inserting before the semicolon the 
    following: ``during any calendar year in which a county in which 
    the farm of the producer is located is included in the pilot 
    program''; and
        (3) in the first sentence of subsection (h), by inserting 
    before the period at the end the following: ``, except that the 
    amount of Commodity Credit Corporation funds used to carry out this 
    section shall not exceed, to the maximum extent practicable, 
    $9,000,000 for fiscal year 2001, $15,000,000 for fiscal year 2002, 
    and $2,000,000 for fiscal year 2003''.

                       Subtitle D--Administration

SEC. 141. RELATION TO OTHER LAWS.

    Section 502 of the Federal Crop Insurance Act (7 U.S.C. 1502), as 
amended by section 122, is amended by adding at the end the following:
    ``(d) Relation to Other Laws.--
        ``(1) Terms and conditions of policies and plans.--The terms 
    and conditions of any policy or plan of insurance offered under 
    this title that is reinsured by the Corporation shall not--
            ``(A) be subject to the jurisdiction of the Commodity 
        Futures Trading Commission or the Securities and Exchange 
        Commission; or
            ``(B) be considered to be accounts, agreements (including 
        any transaction that is of the character of, or is commonly 
        known to the trade as, an `option', `privilege', `indemnity', 
        `bid', `offer', `put', `call', `advance guaranty', or `decline 
        guaranty'), or transactions involving contracts of sale of a 
        commodity for future delivery, traded or executed on a contract 
        market for the purposes of the Commodity Exchange Act (7 U.S.C. 
        1 et seq.).
        ``(2) Effect on cftc and commodity exchange act.--Nothing in 
    this title affects the jurisdiction of the Commodity Futures 
    Trading Commission or the applicability of the Commodity Exchange 
    Act (7 U.S.C. 1 et seq.) to any transaction conducted on a contract 
    market under that Act by an approved insurance provider to offset 
    the approved insurance provider's risk under a plan or policy of 
    insurance under this title.''.

SEC. 142. MANAGEMENT OF CORPORATION.

    (a) Board of Directors of Corporation.--
        (1) Change in composition.--Section 505 of the Federal Crop 
    Insurance Act (7 U.S.C. 1505) is amended by striking the section 
    heading, ``Sec. 505.'', and subsection (a) and inserting the 
    following:

``SEC. 505. MANAGEMENT OF CORPORATION.

    ``(a) Board of Directors.--
        ``(1) Establishment.--The management of the Corporation shall 
    be vested in a Board of Directors subject to the general 
    supervision of the Secretary.
        ``(2) Composition.--The Board shall consist of only the 
    following members:
            ``(A) The manager of the Corporation, who shall serve as a 
        nonvoting ex officio member.
            ``(B) The Under Secretary of Agriculture responsible for 
        the Federal crop insurance program.
            ``(C) One additional Under Secretary of Agriculture (as 
        designated by the Secretary).
            ``(D) The Chief Economist of the Department of Agriculture.
            ``(E) One person experienced in the crop insurance 
        business.
            ``(F) One person experienced in reinsurance or the 
        regulation of insurance.
            ``(G) Four active producers who are policy holders, are 
        from different geographic areas of the United States, and 
        represent a cross-section of agricultural commodities grown in 
        the United States, including at least one specialty crop 
        producer.
        ``(3) Appointment of private sector members.--The members of 
    the Board described in subparagraphs (E), (F), and (G) of paragraph 
    (2)--
            ``(A) shall be appointed by, and hold office at the 
        pleasure of, the Secretary;
            ``(B) shall not be otherwise employed by the Federal 
        Government;
            ``(C) shall be appointed to staggered 4-year terms, as 
        determined by the Secretary; and
            ``(D) shall serve not more than two consecutive terms.
        ``(4) Chairperson.--The Board shall select a member of the 
    Board to serve as Chairperson.''.
        (2) Implementation.--The initial members of the Board of 
    Directors of the Federal Crop Insurance Corporation required to be 
    appointed under section 505(a)(3) of the Federal Crop Insurance Act 
    (as amended by paragraph (1)) shall be appointed during the period 
    beginning February 1, 2001, and ending April 1, 2001.
        (3) Effect on existing board.--A member of the Board of 
    Directors of the Federal Crop Insurance Corporation on the date of 
    the enactment of this Act may continue to serve as a member of the 
    Board until the members referred to in paragraph (2) are first 
    appointed.
    (b) Expert Review of Policies, Plans of Insurance, and Related 
Material.--Section 505 of the Federal Crop Insurance Act (7 U.S.C. 
1505) is amended by adding at the end the following:
    ``(e) Expert Review of Policies, Plans of Insurance, and Related 
Material.--
        ``(1) Review by experts.--The Board shall establish procedures 
    under which any policy or plan of insurance, as well as any related 
    material or modification of such a policy or plan of insurance, to 
    be offered under this title shall be subject to independent reviews 
    by persons experienced as actuaries and in underwriting, as 
    determined by the Board.
        ``(2) Review of corporation policies and plans.--Except as 
    provided in paragraph (3), the Board shall contract with at least 
    five persons to each conduct a review of the policy or plan of 
    insurance, of whom--
            ``(A) not more than one person may be employed by the 
        Federal Government; and
            ``(B) at least one person must be designated by approved 
        insurance providers pursuant to procedures determined by the 
        Board.
        ``(3) Review of private submissions.--If the reviews under 
    paragraph (1) cover a policy or plan of insurance, or any related 
    material or modification of a policy or plan of insurance, 
    submitted under section 508(h)--
            ``(A) the Board shall contract with at least five persons 
        to each conduct a review of the policy or plan of insurance, of 
        whom--
                ``(i) not more than one person may be employed by the 
            Federal Government; and
                ``(ii) none may be employed by an approved insurance 
            provider; and
            ``(B) each review must be completed and submitted to the 
        Board not later than 30 days prior to the end of the 120-day 
        period described in section 508(h)(4)(D).
        ``(4) Consideration of reviews.--The Board shall include 
    reviews conducted under this subsection as part of the 
    consideration of any policy or plan or insurance, or any related 
    material or modification of a policy or plan of insurance, proposed 
    to be offered under this title.
        ``(5) Funding of reviews.--Each contract to conduct a review 
    under this subsection shall be funded from amounts made available 
    under section 516(b)(2)(A)(ii).
        ``(6) Relation to other authority.--The contract authority 
    provided in this subsection is in addition to any other contracting 
    authority that may be exercised by the Board under section 
    506(l).''.

SEC. 143. CONTRACTING FOR RATING OF PLANS OF INSURANCE.

    Section 507(c)(2) of the Federal Crop Insurance Act (7 U.S.C. 
1507(c)(2)) is amended--
        (1) by striking ``actuarial, loss adjustment,'' and inserting 
    ``actuarial services, services relating to loss adjustment and 
    rating plans of insurance,''; and
        (2) by inserting after ``private sector'' the following: ``and 
    to enable the Corporation to concentrate on regulating the 
    provision of insurance under this title and evaluating new products 
    and materials submitted under section 508(h) or 523''.

SEC. 144. ELECTRONIC AVAILABILITY OF CROP INSURANCE INFORMATION.

    Section 508(a)(5) of the Federal Crop Insurance Act (7 U.S.C. 
1508(a)(5)) is amended--
        (1) by redesignating subparagraphs (A) and (B) as clauses (i) 
    and (ii), respectively, and moving such clauses 2 ems to the right;
        (2) by striking ``The Corporation'' and inserting the 
    following:
            ``(A) Available information.--The Corporation''; and
        (3) by adding at the end the following:
            ``(B) Use of electronic methods.--
                ``(i) Dissemination by corporation.--The Corporation 
            shall make the information described in subparagraph (A) 
            available electronically to producers and approved 
            insurance providers.
                ``(ii) Submission to corporation.--To the maximum 
            extent practicable, the Corporation shall allow producers 
            and approved insurance providers to use electronic methods 
            to submit information required by the Corporation.''.

SEC. 145. ADEQUATE COVERAGE FOR STATES.

    Section 508(a) of the Federal Crop Insurance Act (7 U.S.C. 1508(a)) 
is amended by adding at the end the following:
        ``(7) Adequate coverage for states.--
            ``(A) Definition of adequately served.--In this paragraph, 
        the term `adequately served' means having a participation rate 
        that is at least 50 percent of the national average 
        participation rate.
            ``(B) Review.--The Board shall review the policies and 
        plans of insurance that are offered by approved insurance 
        providers under this title to determine if each State is 
        adequately served by the policies and plans of insurance.
            ``(C) Report.--
                ``(i) In general.--Not later than 30 days after 
            completion of the review under subparagraph (B), the Board 
            shall submit to Congress a report on the results of the 
            review.
                ``(ii) Recommendations.--The report shall include 
            recommendations to increase participation in States that 
            are not adequately served by the policies and plans of 
            insurance.''.

SEC. 146. SUBMISSION OF POLICIES AND MATERIALS TO BOARD.

    (a) Persons Authorized To Submit.--Section 508(h)(1) of the Federal 
Crop Insurance Act (7 U.S.C. 1508(h)(1)) is amended by inserting after 
``a person'' the following: ``(including an approved insurance 
provider, a college or university, a cooperative or trade association, 
or any other person)''.
    (b) Sale by Approved Insurance Providers.--Section 508(h)(3) of the 
Federal Crop Insurance Act (7 U.S.C. 1508(h)(3)) is amended in the 
first sentence by inserting after ``for sale'' the following: ``by 
approved insurance providers''.
    (c) Guidelines for Submission and Review.--Section 508(h)(4) of the 
Federal Crop Insurance Act (7 U.S.C. 1508(h)(4)) is amended--
        (1) by striking subparagraph (A) and inserting the following:
            ``(A) Confidentiality.--
                ``(i) In general.--A proposal submitted to the Board 
            under this subsection (including any information generated 
            from the proposal) shall be considered to be confidential 
            commercial or financial information for the purposes of 
            section 552(b)(4) of title 5, United States Code.
                ``(ii) Standard of confidentiality.--If information 
            concerning a proposal could be withheld by the Secretary 
            under the standard for privileged or confidential 
            information pertaining to trade secrets and commercial or 
            financial information under section 552(b)(4) of title 5, 
            United States Code, the information shall not be released 
            to the public.
                ``(iii) Application.--This subparagraph shall apply 
            with respect to a proposal only during the period preceding 
            any approval of the proposal by the Board.'';
        (2) in subparagraph (B), by inserting ``Personal 
    presentation.--'' before ``The''; and
        (3) by striking subparagraphs (C) and (D) and inserting the 
    following:
            ``(C) Notification of intent to disapprove.--
                ``(i) Time period.--The Board shall provide an 
            applicant with notification of intent to disapprove a 
            proposal not later than 30 days prior to making the 
            disapproval.
                ``(ii) Modification of application.--

                    ``(I) Authority.--An applicant that receives the 
                notification may modify the application, and such 
                application, as modified, shall be considered by the 
                Board in the manner provided in subparagraph (D) within 
                the 30-day period beginning on the date the modified 
                application is submitted.
                    ``(II) Time period.--Clause (i) shall not apply to 
                the Board's consideration of the modified application.

                ``(iii) Explanation.--Any notification of intent to 
            disapprove a policy or other material submitted under this 
            subsection shall be accompanied by a complete explanation 
            as to the reasons for the Board's intention to deny 
            approval.
            ``(D) Determination to approve or disapprove 
        policies or materials.--
                ``(i) Time period.--Not later than 120 days after a 
            policy or other material is submitted under this 
            subsection, the Board shall make a determination to approve 
            or disapprove the policy or material.
                ``(ii) Explanation.--Any determination by the Board to 
            disapprove any policy or other material shall be 
            accompanied by a complete explanation of the reasons for 
            the Board's decision to deny approval.
                ``(iii) Failure to meet deadline.--Notwithstanding any 
            other provision of this title, if the Board fails to make a 
            determination within the prescribed time period, the 
            submitted policy or other material shall be deemed approved 
            by the Board for the initial reinsurance year designated 
            for the policy or material, unless the Board and the 
            applicant agree to an extension.''.
    (d) Technical Amendments.--Section 508(h) of the Federal Crop 
Insurance Act (7 U.S.C. 1508(h)) is amended--
        (1) by striking paragraphs (6), (8), (9), and (10); and
        (2) by redesignating paragraph (7) as paragraph (6).

SEC. 147. FUNDING.

    (a) Authorization of Appropriations.--Section 516(a)(2) of the 
Federal Crop Insurance Act (7 U.S.C. 1516(a)(2)) is amended--
        (1) by striking ``years--'' and inserting ``years the 
    following:'';
        (2) by capitalizing the first letter of the first word of each 
    subparagraph;
        (3) by striking ``; and'' at the end of subparagraph (A) and 
    inserting a period; and
        (4) by adding at the end the following:
            ``(C) Costs associated with the conduct of livestock and 
        wild salmon pilot programs carried out under section 523, 
        subject to the limitations in subsections (a)(3)(E)(ii) and 
        (b)(10) of section 523.
            ``(D) Costs associated with the reimbursement, contracting, 
        and partnerships for research and development under section 
        522.''.
    (b) Payment of General Corporation Expenses From Insurance Fund.--
Section 516(b)(1) of the Federal Crop Insurance Act (7 U.S.C. 
1516(b)(1)) is amended--
        (1) by striking ``including--'' and inserting ``including the 
    following:'';
        (2) by capitalizing the first letter of the first word of each 
    subparagraph;
        (3) by striking the semicolon at the end of subparagraph (A) 
    and inserting a period;
        (4) by striking ``; and'' at the end of subparagraph (B) and 
    inserting a period; and
        (5) by adding at the end the following:
            ``(D) Costs associated with the conduct of livestock and 
        wild salmon pilot programs carried out under section 523, 
        subject to the limitations in subsections (a)(3)(E)(ii) and 
        (b)(10) of section 523.
            ``(E) Costs associated with the reimbursement, contracting, 
        and partnerships for research and development under section 
        522.''.
    (c) Expedited Consideration and Implementation of Policies, Plans 
of Insurance, and Related Materials.--Section 516(b)(2) of the Federal 
Crop Insurance Act (7 U.S.C. 1516(b)(2)) is amended--
        (1) by striking ``Research and development ex-
    penses.--'' and inserting ``Policy consideration and 
    implementation.--'';
        (2) in subparagraph (A)--
            (A) by striking ``may pay from'' and inserting ``may use'';
            (B) by striking ``research and development expenses of the 
        Corporation''; and
            (C) by striking the period at the end and inserting the 
        following: ``, to pay the following:
                ``(i) Costs associated with the consideration and 
            implementation of policies, plans of insurance, and related 
            materials submitted under section 508(h) or developed under 
            section 522 or 523.
                ``(ii) Costs to contract for the review of policies, 
            plans of insurance, and related materials under section 
            505(e) and to contract for other assistance in considering 
            policies, plans of insurance, and related materials.''; and
        (3) in subparagraph (B), by striking ``research and 
    development''.
    (d) Deposits to Insurance Fund.--Section 516(c)(1) of the Federal 
Crop Insurance Act (7 U.S.C. 1516(c)(1)) is amended--
        (1) by striking ``income and'' and inserting ``income,''; and
        (2) by inserting ``, and civil fines collected under section 
    515(h)'' after ``(a)(2)''.

SEC. 148. STANDARD REINSURANCE AGREEMENT.

    Notwithstanding section 536 of the Agricultural Research, 
Extension, and Education Reform Act of 1998 (7 U.S.C. 1506 note; Public 
Law 105-185), the Federal Crop Insurance Corporation may renegotiate 
the Standard Reinsurance Agreement once during the 2001 through 2005 
reinsurance years.

                       Subtitle E--Miscellaneous

SEC. 161. LIMITATION ON REVENUE COVERAGE FOR POTATOES.

    Section 508(a)(3) of the Federal Crop Insurance Act (7 U.S.C. 
1508(a)(3)), as amended by section 123, is amended by adding at the end 
the following:
            ``(C) Limitation on revenue coverage for potatoes.--No 
        policy or plan of insurance provided under this title 
        (including a policy or plan of insurance approved by the Board 
        under subsection (h)) shall cover losses due to a reduction in 
        revenue for potatoes except as covered under a whole farm 
        policy or plan of insurance, as determined by the 
        Corporation.''.

SEC. 162. CROP INSURANCE COVERAGE FOR COTTON AND RICE.

    Section 508(a) of the Federal Crop Insurance Act (7 U.S.C. 
1508(a)), as amended by 145, is amended by adding at the end the 
following:
        ``(8) Special provisions for cotton and rice.--Notwithstanding 
    any other provision of this title, beginning with the 2001 crops of 
    upland cotton, extra long staple cotton, and rice, the Corporation 
    shall offer plans of insurance, including prevented planting 
    coverage and replanting coverage, under this title that cover 
    losses of upland cotton, extra long staple cotton, and rice 
    resulting from failure of irrigation water supplies due to drought 
    and saltwater intrusion.''.

SEC. 163. INDEMNITY PAYMENTS FOR CERTAIN PRODUCERS.

    (a) In General.--Except as otherwise provided in this section, 
notwithstanding section 508(c)(5) of the Federal Crop Insurance Act (7 
U.S.C. 1508(c)(5)), a producer that purchased a 1999 Crop Revenue 
Coverage policy for a commodity covered by Bulletin MGR-99-004 (as in 
effect before being voided by subsection (d)) by the sales closing date 
prescribed in the actuarial documents in the county where the policy 
was sold shall receive an indemnity payment in accordance with the 
policy.
    (b) Base and Harvest Prices.--The base price and harvest price 
under the policy for a commodity described in subsection (a) shall be 
determined in accordance with the Commodity Exchange Endorsement 
published by the Federal Crop Insurance Corporation on July 14, 1998 
(63 Fed. Reg. 37829).
    (c) Reinsurance.--Subject to subsection (b), notwithstanding 
section 508(c)(5) of the Federal Crop Insurance Act (7 U.S.C. 
1508(c)(5)), the Corporation shall provide reinsurance with respect to 
the policy in accordance with the Standard Reinsurance Agreement.
    (d) Voiding of Bulletin.--Bulletin MGR-99-004, issued by the 
Administrator of the Risk Management Agency of the Department of 
Agriculture, is void.
    (e) Effective Date.--This section takes effect on October 1, 2000.

SEC. 164. SENSE OF THE CONGRESS REGARDING THE FEDERAL CROP INSURANCE 
              PROGRAM.

    It is the sense of the Congress that--
        (1) farmer-owned cooperatives play a valuable role in achieving 
    the purposes of the Federal Crop Insurance Act (7 U.S.C. 1501 et 
    seq.) by--
            (A) encouraging producer participation in the Federal crop 
        insurance program;
            (B) improving the delivery system for crop insurance; and
            (C) helping to develop new and improved insurance products;
        (2) the Risk Management Agency, through its regulatory 
    activities, should encourage efforts by farmer-owned cooperatives 
    to promote appropriate risk management strategies among their 
    membership;
        (3) partnerships between approved insurance providers and 
    farmer-owned cooperatives provide opportunity for agricultural 
    producers to obtain needed insurance coverage on a more competitive 
    basis and at a lower cost;
        (4) the Risk Management Agency is following an appropriate 
    regulatory process to ensure the continued participation by farmer-
    owned cooperatives in the delivery of crop insurance;
        (5) efforts by the Risk Management Agency to finalize 
    regulations that would incorporate the currently approved business 
    practices of cooperatives participating in the Federal crop 
    insurance program should be commended; and
        (6) not later than 180 days after the date of the enactment of 
    this Act, the Federal Crop Insurance Corporation should complete 
    promulgation of the proposed rule entitled ``General Administrative 
    Regulations; Premium Reductions; Payment of Rebates, Dividends, and 
    Patronage Refunds; and Payments to Insured-Owned and Record-
    Controlling Entities'', published by the Federal Crop Insurance 
    Corporation on May 12, 1999 (64 Fed. Reg. 25464), in a manner 
    that--
            (A) effectively responds to comments received from the 
        public during the rulemaking process;
            (B) provides an effective opportunity for farmer-owned 
        cooperatives to assist the members of the cooperatives to 
        obtain crop insurance and participate most effectively in the 
        Federal crop insurance program;
            (C) incorporates the currently approved business practices 
        of farmer-owned cooperatives participating in the Federal crop 
        insurance program; and
            (D) protects the interests of agricultural producers.

SEC. 165. SENSE OF THE CONGRESS ON RURAL AMERICA, INCLUDING MINORITY 
              AND LIMITED-RESOURCE FARMERS.

    It is the sense of the Congress that--
        (1) rural America, including minority and limited resource 
    farmers, has not experienced this recent period of economic 
    prosperity;
        (2) as a result of sustained low commodity prices, they face 
    significant challenges, including--
            (A) a depressed farm economy;
            (B) a loss of business and jobs on rural main streets;
            (C) a reduction of capital investment; and
            (D) a loss of independent farmers;
        (3) Congress applauds American farmers and rural advocates, 
    including the organizers of the Rally for Rural America, for their 
    efforts in calling this situation to the public's attention; and
        (4) Congress is committed to responding to the concerns of 
    rural America and pledges to devote full attention to making 
    necessary changes to Federal agricultural programs in a manner that 
    will--
            (A) alleviate the agricultural price crisis;
            (B) ensure competitive markets by empowering farm families;
            (C) ensure that all farmers, including minority and 
        limited-resource farmers, participate fully in the benefits of 
        those programs;
            (D) invest in rural education and health;
            (E) increase resources for outreach and technical farming 
        assistance;
            (F) conserve our natural resources for future generations; 
        and
            (G) ensure a safe and secure food supply for all.

             Subtitle F--Effective Dates and Implementation

SEC. 171. EFFECTIVE DATES.

    (a) In General.--Except as provided in subsection (b), this Act and 
the amendments made by this Act take effect on the date of the 
enactment of this Act.
    (b) Exceptions.--
        (1) 2001 fiscal year.--The following provisions and the 
    amendments made by the provisions take effect on October 1, 2000:
            (A) Subtitle C.
            (B) Section 146.
            (C) Section 163.
        (2) 2001 crop year.--The amendments made by the following 
    provisions apply beginning with the 2001 crop of an agricultural 
    commodity:
            (A) Subsections (a), (b), and (c) of section 101.
            (B) Section 102(a).
            (C) Subsections (a), (b), and (c) of section 103.
            (D) Section 104.
            (E) Section 105(b).
            (F) Section 108.
            (G) Section 109.
            (H) Section 162.
        (3) 2001 reinsurance year.--The amendments made by the 
    following provisions apply beginning with the 2001 reinsurance 
    year:
            (A) Section 101(d).
            (B) Section 102(b).
            (C) Section 103(d).

SEC. 172. REGULATIONS.

    Not later than 120 days after the date of the enactment of this 
Act, the Secretary of Agriculture shall promulgate regulations to carry 
out this Act and the amendments made by this Act.

SEC. 173. SAVINGS CLAUSE.

    The Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) and section 
196 of the Federal Agriculture Improvement and Reform Act of 1996 (7 
U.S.C. 7333), as in effect on day before the date of the enactment of 
this Act, shall--
        (1) continue to apply with respect to the 1999 crop year; and
        (2) apply with respect to the 2000 crop year, to the extent the 
    application of an amendment made by this Act is delayed under 
    section 171(b) or by the terms of the amendment.

                   TITLE II--AGRICULTURAL ASSISTANCE
                   Subtitle A--Market Loss Assistance

SEC. 201. MARKET LOSS ASSISTANCE.

    (a) In General.--The Secretary of Agriculture (referred to in this 
title as the ``Secretary'') shall use funds of the Commodity Credit 
Corporation to provide assistance in the form of a market loss 
assistance payment to owners and producers on a farm that are eligible 
for a final payment for fiscal year 2000 under a production flexibility 
contract for the farm under the Agricultural Market Transition Act (7 
U.S.C. 7201 et seq.).
    (b) Amount and Manner.--In providing payments under this section, 
the Secretary shall--
        (1) use the same contract payment rates as are used under 
    section 802(b) of the Agriculture, Rural Development, Food and Drug 
    Administration, and Related Agencies Appropriations Act, 2000 (7 
    U.S.C. 1421 note; Public Law 106-78); and
        (2) provide the payments in a manner that is consistent with 
    section 802(c) of that Act.
    (c) Timing.--The Secretary shall make the payments required by this 
section not earlier than September 1, 2000, and not later than 
September 30, 2000.

SEC. 202. OILSEEDS.

    (a) In General.--The Secretary shall use $500,000,000 of funds of 
the Commodity Credit Corporation to make payments to producers of the 
2000 crop of oilseeds that are eligible to obtain a marketing 
assistance loan under section 131 of the Agricultural Market Transition 
Act (7 U.S.C. 7231).
    (b) Computation.--A payment to producers on a farm under this 
section for an oilseed shall be equal to the product obtained by 
multiplying--
        (1) a payment rate determined by the Secretary;
        (2) the acreage of the producers on the farm for the oilseed, 
    as determined under subsection (c); and
        (3) the yield of the producers on the farm for the oilseed, as 
    determined under subsection (d).
    (c) Acreage.--
        (1) In general.--Except as provided in paragraph (2), the 
    acreage of the producers on the farm for an oilseed under 
    subsection (b)(2) shall be equal to the number of acres planted to 
    the oilseed by the producers on the farm during the 1997, 1998, or 
    1999 crop year, whichever is greatest, as reported by the producers 
    on the farm to the Secretary (including any acreage reports that 
    are filed late).
        (2) New producers.--In the case of producers on a farm that 
    planted acreage to an oilseed during the 2000 crop year but not the 
    1997, 1998, or 1999 crop year, the acreage of the producers for the 
    oilseed under subsection (b)(2) shall be equal to the number of 
    acres planted to the oilseed by the producers on the farm during 
    the 2000 crop year, as reported by the producers on the farm to the 
    Secretary (including any acreage reports that are filed late).
    (d) Yield.--
        (1) Soybeans.--Except as provided in paragraph (3), in the case 
    of soybeans, the yield of the producers on a farm under subsection 
    (b)(3) shall be equal to the greatest of--
            (A) the average county yield per harvested acre for each of 
        the 1995 through 1999 crop years, excluding the crop year with 
        the highest yield per harvested acre and the crop year with the 
        lowest yield per harvested acre; or
            (B) the actual yield of the producers on the farm for the 
        1997, 1998, or 1999 crop year.
        (2) Other oilseeds.--Except as provided in paragraph (3), in 
    the case of oilseeds other than soybeans, the yield of the 
    producers on a farm under subsection (b)(3) shall be equal to the 
    greatest of--
            (A) the average national yield per harvested acre for each 
        of the 1995 through 1999 crop years, excluding the crop year 
        with the highest yield per harvested acre and the crop year 
        with the lowest yield per harvested acre; or
            (B) the actual yield of the producers on the farm for the 
        1997, 1998, or 1999 crop year.
        (3) New producers.--In the case of producers on a farm that 
    planted acreage to an oilseed during the 2000 crop year but not the 
    1997, 1998, or 1999 crop year, the yield of the producers on a farm 
    under subsection (b)(3) shall be equal to the greater of--
            (A) the average county yield per harvested acre for each of 
        the 1995 through 1999 crop years, excluding the crop year with 
        the highest yield per harvested acre and the crop year with the 
        lowest yield per harvested acre; or
            (B) the actual yield of the producers on the farm for the 
        2000 crop.
        (4) Data source.--To the maximum extent available, the 
    Secretary shall use data provided by the National Agricultural 
    Statistics Service to carry out this subsection.

SEC. 203. SPECIALTY CROPS.

    (a) Replenishment of Perishable Agricultural Commodities Act 
Fund.--Of the amount made available under section 261(a)(2), 
$30,450,000 shall--
        (1) be deposited in the Perishable Agricultural Commodities Act 
    Fund established by section 3(b)(5) of the Perishable Agricultural 
    Commodities Act, 1930 (7 U.S.C. 499c(b)(5));
        (2) be merged with other amounts in the Perishable Agricultural 
    Commodities Act Fund; and
        (3) be available for the same purposes and for the same time 
    period as other amounts in the Perishable Agricultural Commodities 
    Act Fund.
    (b) Replenishment of Trust Funds for Services under Agricultural 
Marketing Act of 1946.--Of the amount made available under section 
261(a)(2), $29,000,000 shall--
        (1) be deposited in the trust fund account established to cover 
    the cost of inspection, certification, and identification services 
    provided under section 203(h) of the Agricultural Marketing Act of 
    1946 (7 U.S.C. 1622(h));
        (2) be merged with other amounts in the trust fund account; and
        (3) be available for the same purposes and for the same time 
    period as other amounts in the trust fund account.
    (c) Inspection Services Improvements.--Of the amount made available 
under section 261(a)(2), $11,550,000 shall be used by the Secretary to 
improve the infrastructure and system used for inspecting fruits and 
vegetables, including improving--
        (1) the program used to train inspectors, including the 
    establishment of an inspector training center;
        (2) the technological resources used by inspectors;
        (3) the use of digital imaging by inspectors; and
        (4) the office space and grading tables used by inspectors.
    (d) Surplus Crop Purchases.--
        (1) Purchases.--Of the amount made available under section 
    261(a)(2), $200,000,000 shall be used by the Secretary to purchase 
    specialty crops that have experienced low prices during the 1998 or 
    1999 crop years, including apples, black-eyed peas, cherries, 
    citrus, cranberries, onions, melons, peaches, and potatoes.
        (2) Displacement.--The Secretary shall ensure that purchases of 
    specialty crops under this subsection will not displace purchases 
    by the Secretary under any other law.
    (e) Grower Compensation.--
        (1) Compensation.--Of the amount made available under section 
    261(a)(2), $25,000,000 shall be used by the Secretary to 
    compensate--
            (A) growers covered by the Secretary's Declaration of 
        Extraordinary Emergency published on March 2, 2000 (65 Fed. 
        Reg. 11280), regarding the plum pox virus;
            (B) growers for losses due to Pierce's disease; and
            (C) commercial producers for losses due to citrus canker.
        (2) Report.--Not later than July 19, 2000, the Secretary, in 
    coordination with the Inspector General of the Department of 
    Agriculture, shall submit to the Committee on Agriculture of the 
    House of Representatives and the Committee on Agriculture, 
    Nutrition, and Forestry of the Senate a report that analyzes--
            (A) the economic losses to the produce industry as a result 
        of allegations of false inspection certificates prepared by 
        graders of the Department of Agriculture at Hunts Point 
        Terminal Market, Bronx, New York; and
            (B) the restitution by the Secretary for persons damaged as 
        a result of losses described in subparagraph (A).
    (f) Apple Loans.--
        (1) Requirement.--The Secretary, acting through the Farm 
    Service Agency, shall use funds of the Commodity Credit Corporation 
    to make loans to producers of apples that are suffering economic 
    loss as the result of low prices for apples.
        (2) Term.--The term of a loan made under this subsection shall 
    be not more than 3 years.
        (3) Interest rate.--The interest rate for a loan made under 
    this subsection shall be at a rate equal to the then current cost 
    of money to the Government of the United States for loans of 
    similar maturity.
        (4) Security.--The Secretary may require a loan made under this 
    subsection to be secured by real property or such other collateral 
    as the Secretary considers appropriate and protects the interests 
    of the Federal Government.
        (5) Limitation.--The cost of all loans made under this 
    subsection shall not exceed $5,000,000.

SEC. 204. OTHER COMMODITIES.

    (a) Peanuts.--
        (1) In general.--The Secretary shall use funds of the Commodity 
    Credit Corporation to provide payments to producers of quota 
    peanuts or additional peanuts to partially compensate the producers 
    for continuing low commodity prices, and increasing costs of 
    production, for the 2000 crop year.
        (2) Amount.--The amount of a payment made to producers on a 
    farm of quota peanuts or additional peanuts under paragraph (1) 
    shall be equal to the product obtained by multiplying--
            (A) the quantity of quota peanuts or additional peanuts 
        produced or considered produced by the producers; and
            (B) a payment rate equal to--
                (i) in the case of quota peanuts, $30.50 per ton; and
                (ii) in the case of additional peanuts, $16.00 per ton.
    (b) Tobacco.--
        (1) Definitions.--In this subsection:
            (A) Eligible person.--The term ``eligible person'' means a 
        person that owns or operates, or produces eligible tobacco on, 
        a farm--
                (i) for which the quantity of quota of eligible tobacco 
            allotted to the farm under part I of subtitle B of title 
            III of the Agricultural Adjustment Act of 1938 (7 U.S.C. 
            1311 et seq.) was reduced from the 1999 crop year to the 
            2000 crop year; and
                (ii) that is used for the production of eligible 
            tobacco during the 2000 crop year.
            (B) Eligible tobacco.--The term ``eligible tobacco'' means 
        each of the following kinds of tobacco:
                (i) Flue-cured tobacco, comprising types 11, 12, 13, 
            and 14.
                (ii) Fire-cured tobacco, comprising type 21.
                (iii) Burley tobacco, comprising type 31.
                (iv) Cigar-filler and cigar-binder tobacco, comprising 
            types 42, 43, 44, 54, and 55.
        (2) Payments.--Effective beginning October 1, 2000, the 
    Secretary shall use $340,000,000 of funds of the Commodity Credit 
    Corporation to make payments to eligible persons.
        (3) Allocation of funds among states.--The funds made available 
    for eligible persons under paragraph (2) shall be allocated among 
    States in the following dollar amounts:

    Alabama...................................................


                                                               $100,000 

    Arkansas..................................................


                                                                 $1,000 

    Florida...................................................


                                                             $2,500,000 

    Georgia...................................................


                                                            $13,000,000 

    Indiana...................................................


                                                             $5,400,000 

    Kansas....................................................


                                                                $23,000 

    Kentucky..................................................


                                                           $140,000,000 

    Missouri..................................................


                                                             $2,000,000 

    North Carolina............................................


                                                           $100,000,000 

    Ohio......................................................


                                                             $6,000,000 

    Oklahoma..................................................


                                                                 $1,000 

    South Carolina............................................


                                                            $15,000,000 

    Tennessee.................................................


                                                            $35,000,000 

    Virginia..................................................


                                                            $19,000,000 

    Wisconsin.................................................


                                                               $675,000 

    West Virginia.............................................


                                                             $1,300,000.

        (4) Allocation of funds among farms in a state.--The Secretary 
    shall divide the amount allocated to a State under paragraph (3) 
    among farms in the State based on the quota of eligible tobacco 
    available to each farm of an eligible person for the 2000 crop 
    year.
        (5) Division of farm payments among eligible persons in a 
    state.--Not later than October 20, 2000, the Secretary shall divide 
    amounts made available to farms in a State under paragraph (4) 
    among eligible persons who are quota owners, quota lessees, and 
    tobacco producers on farms in the State, and make payments to the 
    eligible persons, on the basis of--
            (A) in the case of a State that is a party to the National 
        Tobacco Grower Settlement Trust, the formula in the Trust used 
        to allocate funds among quota owners, quota lessees, and 
        tobacco producers on farms in the State, with such adjustments 
        as the Secretary determines are necessary to enable the 
        payments to be made by October 20, 2000; or
            (B) in the case of a State that is not a party to the 
        National Tobacco Grower Settlement Trust, a formula established 
        by the Secretary.
        (6) Payments to eligible persons in georgia.--The Secretary 
    shall use the amount allocated to the State of Georgia under 
    paragraph (3) to make payments to eligible persons in Georgia only 
    if the State of Georgia agrees to use an equal amount (not to 
    exceed $13,000,000) to make payments at the same time, or 
    subsequently, to the same eligible persons in the same manner as 
    provided for the Federal payment under paragraphs (4) and (5).
        (7) Use for administrative costs.--None of the funds made 
    available under paragraphs (1) through (7) may be used to pay 
    administrative costs incurred in carrying out those paragraphs.
        (8) Transfer of allotments.--Section 318 of the Agricultural 
    Adjustment Act of 1938 (7 U.S.C. 1314d) is amended by striking 
    subsection (g) and inserting the following:
    ``(g) Transfer of Allotments.--Under this section, the total 
acreage allotted to any farm after any transfer shall not exceed 50 
percent of the acreage of cropland on the farm.''.
        (9) Burley tobacco inventories of producer associations.--
    Section 319(c)(3) of the Agricultural Adjustment Act of 1938 (7 
    U.S.C. 1314e(c)(3)) is amended--
            (A) in subparagraph (B), by striking ``In'' and inserting 
        ``Except as provided in subparagraph (D), in''; and
            (B) by adding at the end the following:
            ``(D) Nonapplicability of downward adjustment.--If the 
        Secretary determines for any of the 2001 or subsequent crop 
        years that noncommitted pool stocks of Burley tobacco are equal 
        to or less than the reserve stock level established under this 
        paragraph, subparagraph (B) shall not apply to the crop year 
        for which the determination is made and all subsequent crop 
        years.''.
        (10) Limitations on burley tobacco quota adjustments.--
            (A) Carry forward adjustment.--Section 319(e) of the 
        Agricultural Adjustment Act of 1938 (7 U.S.C. 1314e(e)) is 
        amended in the fifth sentence--
                (i) by striking ``: Provided, That'' and inserting ``, 
            except that (1)''; and
                (ii) by inserting before the period at the end the 
            following: ``, and (2) the aggregate of such increases for 
            all farms for any crop year may not exceed 10 percent of 
            the national basic quota for the preceding crop year''.
            (B) Lease and transfer of quota due to natural disasters.--
        Section 319(k) of the Agricultural Adjustment Act of 1938 (7 
        U.S.C. 1314e(k)) is amended by adding at the end the following:
        ``(3) Limitation.--The total quantity of quota leased or 
    transferred to a farm during a crop year under this subsection may 
    not exceed 15 percent of the quota on the farm that existed prior 
    to any such lease or transfer for the crop year.''.
        (11) Lease and transfer of burley tobacco quota.--Section 319 
    of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1314e) is 
    amended by striking subsection (l) and inserting the following:
    ``(l) Lease and Transfer of Burley Tobacco Quota.--
        ``(1) Approval by producers.--Notwithstanding any other 
    provision of this section, the Secretary may permit the lease and 
    transfer of a Burley tobacco quota from one farm in a State to any 
    other farm in the State if, in a State-wide referendum conducted by 
    the Secretary, a majority of the active Burley tobacco producers 
    voting in the referendum approve the use of that type of lease and 
    transfer.
        ``(2) Application.--This subsection shall apply only to the 
    States of Tennessee, Ohio, Indiana, Kentucky, and Virginia.''.
        (12) Recordkeeping and sale of burley tobacco quota and 
    acreage.--Section 319 of the Agricultural Adjustment Act of 1938 (7 
    U.S.C. 1314e) is amended by adding at the end the following:
    ``(m) Computerized Recordkeeping System for Burley Tobacco Quota 
and Acreage.--
        ``(1) Producer reports.--Each person that owns a farm for which 
    a Burley tobacco marketing quota is established under this Act 
    shall annually file with the Secretary a report describing the 
    acreage planted to Burley tobacco on the farm.
        ``(2) Computerized recordkeeping system.--Not later than 180 
    days after the date of the enactment of this subsection, the 
    Secretary shall establish a computerized recordkeeping system that 
    contains all information reported under paragraph (1) and related 
    records, as determined by the Secretary.
    ``(n) Sale of Burley Tobacco Quota.--Notwithstanding any other 
provision of this section, if a person that owns a farm for which a 
Burley tobacco marketing quota is established under this Act sells all 
or part of the acreage on the farm to a buyer, the Secretary shall 
permit the seller and buyer of the acreage to determine the percentage 
of the quota that is transferred with the acreage sold.''.
    (c) Honey.--
        (1) In general.--The Secretary shall use funds of the Commodity 
    Credit Corporation to make available recourse loans to producers of 
    the 2000 crop of honey on fair and reasonable terms and conditions, 
    as determined by the Secretary.
        (2) Loan rate.--The loan rate for a loan under paragraph (1) 
    shall be equal to 85 percent of the average price of honey during 
    the 5-crop year period preceding the 2000 crop year, excluding the 
    crop year in which the average price of honey was the highest and 
    the crop year in which the average price of honey was the lowest in 
    the period.
    (d) Wool and Mohair.--
        (1) In general.--The Secretary shall use funds of the Commodity 
    Credit Corporation to make payments to producers of wool, and 
    producers of mohair, for the 1999 marketing year.
        (2) Payment rate.--The payment rate for payments made to 
    producers under paragraph (1) shall be equal to--
            (A) in the case of wool, 20 cents per pound; and
            (B) in the case of mohair, 40 cents per pound.
    (e) Cottonseed.--The Secretary shall use $100,000,000 of funds of 
the Commodity Credit Corporation to provide assistance to producers and 
first-handlers of the 2000 crop of cottonseed.

SEC. 205. PAYMENTS IN LIEU OF LOAN DEFICIENCY PAYMENTS.

    (a) Eligible Producers.--Effective for the 2001 crop year, in the 
case of a producer that would be eligible for a loan deficiency payment 
under section 135 of the Agricultural Market Transition Act (7 U.S.C. 
7235) for wheat, barley, or oats, but that elects to use acreage 
planted to the wheat, barley, or oats for the grazing of livestock, the 
Secretary shall make a payment to the producer under this section if 
the producer enters into an agreement with the Secretary to forgo any 
other harvesting of the wheat, barley, or oats on that acreage.
    (b) Payment Amount.--The amount of a payment made to a producer on 
a farm under this section shall be equal to the amount determined by 
multiplying--
        (1) the loan deficiency payment rate determined under section 
    135(c) of the Agricultural Market Transition Act (7 U.S.C. 7235(c)) 
    in effect, as of the date of the agreement, for the county in which 
    the farm is located; by
        (2) the payment quantity determined by multiplying--
            (A) the quantity of the grazed acreage on the farm with 
        respect to which the producer elects to forgo harvesting of 
        wheat, barley, or oats; and
            (B) the greater of--
                (i) the established yield for the crop on the 
            farm; or
                (ii) the average county yield per harvested acre of the 
            crop, as determined by the Secretary.
    (c) Time, Manner, and Availability of Payment.--
        (1) Time and manner.--A payment under this section shall be 
    made at the same time and in the same manner as loan deficiency 
    payments are made under section 135 of the Agricultural Market 
    Transition Act (7 U.S.C. 7235), except that the payment shall be 
    made not later than September 30, 2001.
        (2) Availability.--The Secretary shall establish an 
    availability period for the payment authorized by this section that 
    is consistent with the availability period for wheat, barley, and 
    oats established by the Secretary for marketing assistance loans 
    authorized by subtitle C of the Agricultural Market Transition Act 
    (7 U.S.C. 7231 et seq.).
    (d) Regulations.--The Secretary shall promulgate under section 263 
such regulations as are necessary to administer the payments authorized 
by this section in a fair and equitable manner with respect to 
producers of wheat and feed grains that do not receive a payment under 
this section.
    (e) Funding.--The Secretary shall use funds of the Commodity Credit 
Corporation to carry out this section.

SEC. 206. EXPANSION OF PRODUCERS ELIGIBLE FOR LOAN DEFICIENCY PAYMENTS.

    (a) Eligible Producers.--Section 135(a) of the Agricultural Market 
Transition Act (7 U.S.C. 7235(a)) is amended--
        (1) by striking ``to producers'' and inserting ``to--
        ``(1) producers'';
        (2) by striking the period at the end and inserting ``; and''; 
    and
        (3) by adding at the end the following:
        ``(2) effective only for the 2000 crop year, producers that, 
    although not eligible to obtain such a marketing assistance loan 
    under section 131, produce a contract commodity.''.
    (b) Calculation.--Section 135(b)(2) of the Agricultural Market 
Transition Act (7 U.S.C. 7235(b)(2)) is amended by striking ``that the 
producers'' and all that follows through the period at the end and 
inserting the following: ``produced by the eligible producers, 
excluding any quantity for which the producers obtain a loan under 
section 131.''.
    (c) Transition; Beneficial Interest.--Section 135 of the 
Agricultural Market Transition Act (7 U.S.C. 7235) is amended by adding 
at the end the following:
    ``(e) Transition.--A payment to a producer eligible for a payment 
under subsection (a)(2) that harvested a commodity on or before the 
date that is 30 days after the promulgation of the regulations 
implementing subsection (a)(2) shall be determined as the date the 
producer lost beneficial interest in the commodity, as determined by 
the Secretary.
    ``(f) Beneficial Interest.--Subject to subsection (e), a producer 
shall be eligible for a payment under this section only if the producer 
has a beneficial interest in the commodity, as determined by the 
Secretary.''.

                        Subtitle B--Conservation

SEC. 211. CONSERVATION ASSISTANCE.

    (a) Farmland Protection.--For the purposes described in section 388 
of the Federal Agriculture Improvement and Reform Act of 1996 (16 
U.S.C. 3830 note; Public Law 104-127), the Secretary shall use 
$10,000,000 of funds of the Commodity Credit Corporation to make 
payments to--
        (1) any agency of any State or local government, or federally 
    recognized Indian tribe, including farmland protection boards and 
    land resource councils established under State law; and
        (2) any organization that--
            (A) is organized for, and at all times since the formation 
        of the organization has been operated principally for, one or 
        more of the conservation purposes specified in clause (i), 
        (ii), or (iii) of section 170(h)(4)(A) of the Internal Revenue 
        Code of 1986;
            (B) is an organization described in section 501(c)(3) of 
        that Code that is exempt from taxation under section 501(a) of 
        that Code;
            (C) is described in section 509(a)(2) of that Code; or
            (D) is described in section 509(a)(3) of that Code and is 
        controlled by an organization described in section 509(a)(2) of 
        that Code.
    (b) Soil and Water Conservation Assistance.--
        (1) Establishment.--The Secretary shall use $40,000,000 of 
    funds of the Commodity Credit Corporation to provide financial 
    assistance to farmers and ranchers to--
            (A) address threats to soil, water, and related natural 
        resources, including grazing land, wetland, and wildlife 
        habitat;
            (B) comply with Federal and State environmental laws; and
            (C) make 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.
        (2) Type of assistance.--Assistance under this subsection may 
    be made in the form of cost share payments or incentive payments, 
    as determined by the Secretary.
        (3) Areas.--The Secretary shall provide assistance under this 
    subsection to areas that are not designated under section 1230(c) 
    of the Food Security Act of 1985 (16 U.S.C. 3830(c)).

SEC. 212. CONDITION ON DEVELOPMENT OF LITTLE DARBY NATIONAL WILDLIFE 
              REFUGE, OHIO.

    The Secretary of the Interior, acting through the Director of the 
United States Fish and Wildlife Service, shall prepare an environmental 
impact statement pursuant to the National Environmental Policy Act of 
1969 (42 U.S.C. 4321 et seq.) before proceeding with any further 
development of the Little Darby National Wildlife Refuge in Madison and 
Union Counties, Ohio.

                          Subtitle C--Research

SEC. 221. CARBON CYCLE RESEARCH.

    (a) In General.--Of the amount made available under section 
261(a)(2), the Secretary shall use $15,000,000 to provide a grant to 
the Consortium for Agricultural Soils Mitigation of Greenhouse Gases, 
acting through Kansas State University, to develop, analyze, and 
implement, through the land grant universities described in subsection 
(b), carbon cycle research at the national, regional, and local levels.
    (b) Land Grant Universities.--The land grant universities referred 
to in subsection (a) are the following:
        (1) Colorado State University.
        (2) Iowa State University.
        (3) Kansas State University.
        (4) Michigan State University.
        (5) Montana State University.
        (6) Purdue University.
        (7) Ohio State University.
        (8) Texas A&M University.
        (9) University of Nebraska.
    (c) Use.--Land grant universities described in subsection (b) shall 
use funds made available under this section--
        (1) to conduct research to improve the scientific basis of 
    using land management practices to increase soil carbon 
    sequestration, including research on the use of new technologies to 
    increase carbon cycle effectiveness, such as biotechnology and 
    nanotechnology;
        (2) to enter into partnerships to identify, develop, and 
    evaluate agricultural best practices, including partnerships 
    between--
            (A) Federal, State, or private entities; and
            (B) the Department of Agriculture;
        (3) to develop necessary computer models to predict and assess 
    the carbon cycle;
        (4) to estimate and develop mechanisms to measure carbon levels 
    made available as a result of--
            (A) voluntary Federal conservation programs;
            (B) private and Federal forests; and
            (C) other land uses;
        (5) to develop outreach programs, in coordination with 
    Extension Services, to share information on carbon cycle and 
    agricultural best practices that is useful to agricultural 
    producers; and
        (6) to collaborate with the Great Plains Regional Earth Science 
    Application Center to develop a space-based carbon cycle remote 
    sensing technology program to--
            (A) provide, on a near-continual basis, a real-time and 
        comprehensive view of vegetation conditions;
            (B) assess and model agricultural carbon sequestration; and
            (C) develop commercial products.
    (d) Administrative Costs.--Not more than 3 percent of the funds 
made available under subsection (a) may be used by the Secretary to pay 
administrative costs incurred in carrying out this section.

SEC. 222. TOBACCO RESEARCH FOR MEDICINAL PURPOSES.

    (a) Assistance.--Of the amount made available under section 
261(a)(2), the Secretary, acting through the Cooperative State 
Research, Education, and Extension Service, shall use $3,000,000 to 
provide a grant jointly to Georgetown University and North Carolina 
State University to conduct research regarding the extraction and 
purification of proteins from genetically altered tobacco that may be 
used as a vaccine for cervical cancer.
    (b) Relation to Other Law.--The Secretary may make the grant 
described in subsection (a) notwithstanding any general prohibition on 
the use of appropriated funds to carry out research related to the 
production, processing, or marketing of tobacco or tobacco products.

SEC. 223. RESEARCH ON SOIL SCIENCE AND FOREST HEALTH MANAGEMENT.

    Of the amount made available under section 261(a)(2), the Secretary 
shall use $10,000,000 to provide a grant to the University of Nebraska 
in Lincoln, Nebraska, for laboratories and equipment for research on 
soil science and forest health and management.

SEC. 224. RESEARCH ON WASTE STREAMS FROM LIVESTOCK PRODUCTION.

    Of the amount made available under section 261(a)(2), the Secretary 
shall use $3,500,000 to expand current research related to technologies 
for--
        (1) reducing, modifying, recycling, and using waste streams 
    from livestock production; and
        (2) eliminating associated air, water, and soil quality 
    problems.

SEC. 225. IMPROVED STORAGE AND MANAGEMENT OF LIVESTOCK AND POULTRY 
              WASTE.

    (a) Assistance.--Of the amount made available under section 
261(a)(2), the Secretary shall use $5,000,000--
        (1) to review and assess the actual or potential failure of 
    waste storage and handling systems used in livestock or poultry 
    production and the environmental damages associated with the 
    failure of the systems; and
        (2) to study and demonstrate appropriate market-oriented 
    mechanisms to assist livestock producers and poultry producers to 
    prevent the failure of the systems and rectify environmental 
    damages associated with the failure of the systems.
    (b) Implementation.--The Secretary shall carry out this section 
through grants, contracts, and cooperative agreements with livestock 
producers, poultry producers, associations of such producers, and 
foundations supported by such producers.

SEC. 226. ETHANOL RESEARCH PILOT PLANT.

    Of the amount made available under section 261(a)(2), the Secretary 
shall use $14,000,000 to provide a grant to the State of Illinois to 
complete the construction of a corn-based ethanol research pilot plant 
(Agreement No. 59-3601-7-078) at Southern Illinois University, 
Edwardsville, Illinois.

SEC. 227. BIOINFORMATICS INSTITUTE FOR MODEL PLANT SPECIES.

    (a) Establishment and Purpose.--The Secretary, acting through the 
Agricultural Research Service, may enter into a cooperative agreement 
with the National Center for Genome Resources in Santa Fe, New Mexico, 
New Mexico State University, and Iowa State University, for the 
establishment and operation of an institute (to be known as the 
``Bioinformatics Institute for Model Plant Species'') in Santa Fe, New 
Mexico, for the purpose of enhancing the accessibility and utility of 
genomic information for plant genetic research.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section--
        (1) $3,000,000 for the purpose of establishing the Institute 
    under subsection (a); and
        (2) such sums as may be necessary for each fiscal year to carry 
    out the cooperative agreement authorized by subsection (a).

                   Subtitle D--Agricultural Marketing

SEC. 231. VALUE-ADDED AGRICULTURAL PRODUCT MARKET DEVELOPMENT GRANTS.

    (a) Grant Program.--
        (1) Establishment and purposes.--Of the amount made available 
    under section 261(a)(2), $15,000,000 shall be used by the Secretary 
    to award competitive grants to eligible independent producers (as 
    determined by the Secretary) of value-added agricultural 
    commodities and products of agricultural commodities to assist an 
    eligible producer--
            (A) to develop a business plan for viable marketing 
        opportunities for a value-added agricultural commodity or 
        product of an agricultural commodity; or
            (B) to develop strategies for the ventures that are 
        intended to create marketing opportunities for the producers.
        (2) Amount of grant.--The total amount provided under this 
    subsection to a grant recipient may not exceed $500,000.
        (3) Producer strategies.--A producer that receives a grant 
    under paragraph (1) shall use the grant--
            (A) to develop a business plan or perform a feasibility 
        study to establish a viable marketing opportunity for a value-
        added agricultural commodity or product of an agricultural 
        commodity; or
            (B) to provide capital to establish alliances or business 
        ventures that allow the producer to better compete in domestic 
        or international markets.
    (b) Agricultural Marketing Resource Center Pilot Project.--
        (1) Establishment.--Notwithstanding the limitation on grants in 
    subsection (a)(2), the Secretary shall not use more than $5,000,000 
    of the funds made available under subsection (a) to establish a 
    pilot project (to be known as the ``Agricultural Marketing Resource 
    Center'') at an eligible institution described in paragraph (2) 
    that will--
            (A) develop a resource center with electronic capabilities 
        to coordinate and provide to independent producers and 
        processors (as determined by the Secretary) of value-added 
        agricultural commodities and products of agricultural 
        commodities information regarding research, business, legal, 
        financial, or logistical assistance; and
            (B) develop a strategy to establish a nationwide market 
        information and coordination system.
        (2) Eligible institution.--To be eligible to receive funding to 
    establish the Agricultural Marketing Resource Center, an applicant 
    shall demonstrate to the Secretary--
            (A) the capacity and technical expertise to provide the 
        services described in paragraph (1)(A);
            (B) an established plan outlining support of the applicant 
        in the agricultural community; and
            (C) the availability of resources (in cash or in kind) of 
        definite value to sustain the Center following establishment.
    (c) Matching Funds.--A recipient of funds under subsection (a) or 
(b) shall contribute an amount of non-Federal funds that is at least 
equal to the amount of Federal funds received.
    (d) Limitation.--Funds provided under this section may not be used 
for--
        (1) planning, repair, rehabilitation, acquisition, or 
    construction of a building or facility (including a processing 
    facility); or
        (2) the purchase, rental, or installation of fixed equipment.

                     Subtitle E--Nutrition Programs

SEC. 241. CALCULATION OF MINIMUM AMOUNT OF COMMODITIES FOR SCHOOL LUNCH 
              REQUIREMENTS.

    (a) Fiscal Year 2000.--Notwithstanding any other provision of law, 
in addition to any assistance provided under any other provision of 
law, of the amount made available under section 261(a)(1), the 
Secretary shall use $34,000,000 in fiscal year 2000 to purchase 
commodities of the type provided under section 6 of the Richard B. 
Russell National School Lunch Act (42 U.S.C. 1755) for distribution to 
schools participating in the school lunch program established under 
that Act (42 U.S.C. 1751 et seq.).
    (b) Fiscal Year 2001.--Section 6(e)(1)(B) of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1755(e)(1)(B)) is amended by 
striking ``2000'' and inserting ``2001''.
    (c) Additional Commodities in Fiscal Year 2001.--Notwithstanding 
any other provision of law, in addition to any assistance provided 
under any other provision of law (including the amendment made by 
subsection (b)), of the amount made available under section 261(a)(2), 
the Secretary shall use $21,000,000 in fiscal year 2001 to purchase 
commodities of the type provided under section 6 of the Richard B. 
Russell National School Lunch Act (42 U.S.C. 1755) for distribution to 
schools participating in the school lunch program established under 
that Act (42 U.S.C. 1751 et seq.).
    (d) Distribution to Schools.--The commodities purchased under 
subsections (a) and (c) shall, to the maximum extent practicable, be 
distributed in the same manner as commodities are distributed under 
section 6 of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1755).

SEC. 242. SCHOOL LUNCH DATA.

    (a) Limited Waiver of Confidentiality Requirement.--
        (1) In general.--Section 9(b)(2)(C)(iii) of the Richard B. 
    Russell National School Lunch Act (42 U.S.C. 1758(b)(2)(C)(iii)) is 
    amended--
            (A) in subclause (II), by striking ``and'' at the end;
            (B) in subclause (III), by striking the period at the end 
        and inserting ``; and''; and
            (C) by adding at the end the following:

                    ``(IV) a person directly connected with the 
                administration of the State medicaid program under 
                title XIX of the Social Security Act (42 U.S.C. 1396 et 
                seq.) or the State children's health insurance program 
                under title XXI of that Act (42 U.S.C. 1397aa et seq.) 
                solely for the purpose of identifying children eligible 
                for benefits under, and enrolling children in, such 
                programs, except that this subclause shall apply only 
                to the extent that the State and the school food 
                authority so elect.''.

        (2) Certification and notification.--Section 9(b)(2)(C) of the 
    Richard B. Russell National School Lunch Act (42 U.S.C. 
    1758(b)(2)(C)) is amended by adding at the end the following:
                ``(vi) Requirements for waiver of confidentiality.--A 
            State that elects to exercise the option described in 
            clause (iii)(IV) shall ensure that any school food 
            authority acting in accordance with that option--

                    ``(I) has a written agreement with the State or 
                local agency or agencies administering health insurance 
                programs for children under titles XIX and XXI of the 
                Social Security Act (42 U.S.C. 1396 et seq. and 1397aa 
                et seq.) that requires the health agencies to use the 
                information obtained under clause (iii) to seek to 
                enroll children in those health insurance programs; and
                    ``(II)(aa) notifies each household, the information 
                of which shall be disclosed under clause (iii), that 
                the information disclosed will be used only to enroll 
                children in health programs referred to in clause 
                (iii)(IV); and
                    ``(bb) provides each parent or guardian of a child 
                in the household with an opportunity to elect not to 
                have the information disclosed.

                ``(vii) Use of disclosed information.--A person to 
            which information is disclosed under clause (iii)(IV) shall 
            use or disclose the information only as necessary for the 
            purpose of enrolling children in health programs referred 
            to in clause (iii)(IV).''.
    (b) Demonstration Project.--
        (1) In general.--Section 17 of the Child Nutrition Act of 1966 
    (42 U.S.C. 1786) is amended by adding at the end the following:
    ``(r) Demonstration Project Relating to Use of the WIC Program for 
Identification and Enrollment of Children in Certain Health Programs.--
        ``(1) In general.--In accordance with paragraph (2), the 
    Secretary shall establish a demonstration project in at least 20 
    local agencies in one State under which costs of nutrition services 
    and administration (as defined in subsection (b)(4)) shall include 
    the costs of identification of children eligible for benefits 
    under, and the provision of enrollment assistance for children in--
            ``(A) the State medicaid program under title XIX of the 
        Social Security Act (42 U.S.C. 1396 et seq.); and
            ``(B) the State children's health insurance program under 
        title XXI of that Act (42 U.S.C. 1397aa et seq.).
        ``(2) State-related requirements.--The State in which a 
    demonstration project is established under paragraph (1)--
            ``(A) shall operate not fewer than 20 pilot site locations;
            ``(B) as of the date of establishment of the demonstration 
        project--
                ``(i) with respect to the programs referred to in 
            subparagraphs (A) and (B) of paragraph (1)--

                    ``(I) shall have in use a simplified application 
                form with a length of not more than two pages;
                    ``(II) shall accept mail-in applications; and
                    ``(III) shall permit enrollment in the program in a 
                variety of locations; and

                ``(ii) shall have served as an original pilot site for 
            the program under this section; and
            ``(C) as of December 31, 1998, shall have had--
                ``(i) an infant mortality rate that is above the 
            national average; and
                ``(ii) an overall rate of age-appropriate immunizations 
            against vaccine-preventable diseases that is below 80 
            percent.
        ``(3) Termination of authority.--The authority provided by this 
    subsection terminates September 30, 2003.''.
        (2) Technical amendments.--Section 17 of the Child Nutrition 
    Act of 1966 (42 U.S.C. 1786) is amended--
            (A) in subsection (b)(4), by striking ``(4)'' and all that 
        follows through ``means'' and inserting ``(4) `Costs of 
        nutrition services and administration' or `nutrition services 
        and administration' means''; and
            (B) in subsection (h)(1)(A), by striking ``costs incurred 
        by State and local agencies for nutrition services and 
        administration'' and inserting ``costs of nutrition services 
        and administration incurred by State and local agencies''.
        (3) Grant for demonstration project.--Section 12 of the Richard 
    B. Russell National School Lunch Act (42 U.S.C. 1760) is amended by 
    adding at the end the following:
    ``(p) Grant for Demonstration Project.--
        ``(1) Use of funds for wic demonstration project.--
            ``(A) In general.--The Secretary shall make grants of funds 
        under this subsection to a State--
                ``(i) for purposes that include carrying out the 
            demonstration project under section 17(r) of the Child 
            Nutrition Act of 1966 (42 U.S.C. 1786(r)); and
                ``(ii) for the purpose described in clause (i), in 
            amounts not to exceed $10,000 for each fiscal year for each 
            site in the State.
            ``(B) Apportionment.--A State that receives a grant under 
        subparagraph (A) shall apportion the funds received to ensure 
        that each site in the State receives not more than $10,000 for 
        any fiscal year.
        ``(2) Evaluations of demonstration project.--The Secretary 
    shall conduct an evaluation of the demonstration project and grant 
    program for identification and enrollment efforts funded under this 
    subsection that include a determination of--
            ``(A) the number of children enrolled as a result of the 
        enactment of this subsection;
            ``(B) the income levels of the families of enrolled 
        children;
            ``(C) the cost of identification and enrollment assistance 
        services provided under the project or grant program;
            ``(D) the effect on the caseloads of local agencies that 
        carry out the special supplemental nutrition program for woman, 
        infants, and children established under section 17 of the Child 
        Nutrition Act of 1966 (42 U.S.C. 1786); and
            ``(E) such other factors as the Secretary determines to be 
        appropriate.
        ``(3) Funding.--
            ``(A) In general.--Out of any moneys in the Treasury not 
        otherwise appropriated, the Secretary of the Treasury shall 
        provide to the Secretary to carry out this subsection 
        $1,000,000 for the period of fiscal years 2001 through 2004, to 
        remain available until expended but not later than September 
        30, 2004.
            ``(B) Receipt and acceptance.--The Secretary shall be 
        entitled to receive the funds and shall accept the funds 
        provided under subparagraph (A), without further 
        appropriation.''.
    (c) Effective Date.--The amendments made by this section take 
effect on October 1, 2000.

SEC. 243. CHILD AND ADULT CARE FOOD PROGRAM INTEGRITY.

    (a) Definition of Institution; Exclusion of Seriously Deficient 
Institutions.--Section 17(a) of the Richard B. Russell National School 
Lunch Act (42 U.S.C. 1766(a)) is amended--
        (1) by striking ``(a) The Secretary'' and inserting the 
    following:
    ``(a) Grant Authority and Institution Eligibility.--
        ``(1) Grant authority.--The Secretary'';
        (2) by striking the second and third sentences and inserting 
    the following:
        ``(2) Definition of institution.--In this section, the term 
    `institution' means--
            ``(A) any public or private nonprofit organization 
        providing nonresidential child care or day care outside school 
        hours for school children, including any child care center, 
        settlement house, recreational center, Head Start center, and 
        institution providing child care facilities for children with 
        disabilities;
            ``(B) any other private organization providing 
        nonresidential child care or day care outside school hours for 
        school children for which the organization receives 
        compensation from amounts granted to the States under title XX 
        of the Social Security Act (42 U.S.C. 1397 et seq.) (but only 
        if the organization receives compensation under that title for 
        at least 25 percent of its enrolled children or 25 percent of 
        its licensed capacity, whichever is less);
            ``(C) any public or private nonprofit organization acting 
        as a sponsoring organization for one or more of the 
        organizations described in subparagraph (A) or (B) or for an 
        adult day care center (as defined in subsection (o)(2));
            ``(D) any other private organization acting as a sponsoring 
        organization for, and that is part of the same legal entity as, 
        one or more organizations that are--
                ``(i) described in subparagraph (B); or
                ``(ii) proprietary title XIX or title XX centers (as 
            defined in subsection (o)(2));
            ``(E) any public or private nonprofit organization acting 
        as a sponsoring organization for one or more family or group 
        day care homes; and
            ``(F) any emergency shelter (as defined in subsection 
        (t)).'';
        (3) by striking ``Except as provided in subsection (r),'' and 
    inserting the following:
        ``(3) Age limit.--Except as provided in subsection (r),'';
        (4) by striking ``The Secretary may establish separate 
    guidelines'' and inserting the following:
        ``(4) Additional guidelines.--The Secretary may establish 
    separate guidelines'';
        (5) by striking ``For purposes of determining'' and all that 
    follows through ``an institution'' and inserting the following:
        ``(5) Licensing.--In order to be eligible, an institution''; 
    and
        (6) by striking ``standards; and'' and inserting 
    ``standards.'';
        (7) by striking ``(2) no institution'' and inserting the 
    following:
        ``(6) Eligibility criteria.--No institution''; and
        (8) in paragraph (6) (as so designated)--
            (A) in subparagraph (B), by inserting ``, or has not been 
        determined to be ineligible to participate in any other 
        publicly funded program by reason of violation of the 
        requirements of the program'' before ``, for a period'';
            (B) in subparagraph (C)--
                (i) by inserting ``(i)'' after ``(C)''; and
                (ii) by adding at the end the following:
            ``(ii) in the case of a sponsoring organization, the 
        organization shall employ an appropriate number of monitoring 
        personnel based on the number and characteristics of child care 
        centers and family or group day care homes sponsored by the 
        organization, as approved by the State (in accordance with 
        regulations promulgated by the Secretary), to ensure effective 
        oversight of the operations of the child care centers and 
        family or group day care homes; and'';
            (C) in subparagraph (D), by striking the period and 
        inserting a semicolon; and
            (D) by adding at the end the following:
            ``(E) in the case of a sponsoring organization, the 
        organization has in effect a policy that restricts other 
        employment by employees that interferes with the 
        responsibilities and duties of the employees of the 
        organization with respect to the program; and
            ``(F) in the case of a sponsoring organization that applies 
        for initial participation in the program on or after the date 
        of the enactment of this subparagraph and that operates in a 
        State that requires such institutions to be bonded under State 
        law, regulation, or policy, the institution is bonded in 
        accordance with such law, regulation, or policy.''.
    (b) Institution Approval and Applications.--
        (1) In general.--Section 17(d) of the Richard B. Russell 
    National School Lunch Act (42 U.S.C. 1766(d)) is amended by 
    striking the subsection designation and all that follows through 
    the end of paragraph (1) and inserting the following:
    ``(d) Institution Approval and Applications.--
        ``(1) Institution approval.--
            ``(A) Administrative capability.--Subject to subparagraph 
        (B) and except as provided in subparagraph (C), the State 
        agency shall approve an institution that meets the requirements 
        of this section for participation in the child and adult care 
        food program if the State agency determines that the 
        institution--
                ``(i) is financially viable;
                ``(ii) is administratively capable of operating the 
            program (including whether the sponsoring organization has 
            business experience and management plans appropriate to 
            operate the program) described in the application of the 
            institution; and
                ``(iii) has internal controls in effect to ensure 
            program accountability.
            ``(B) Approval of private institutions.--
                ``(i) In general.--In addition to the requirements 
            established by subparagraph (A) and subject to clause (ii), 
            the State agency shall approve a private institution that 
            meets the requirements of this section for participation in 
            the child and adult care food program only if--

                    ``(I) the State agency conducts a satisfactory 
                visit to the institution before approving the 
                participation of the institution in the program; and
                    ``(II) the institution--

                        ``(aa) has tax exempt status under the Internal 
                    Revenue Code of 1986;
                        ``(bb) is operating a Federal program requiring 
                    nonprofit status to participate in the program; or
                        ``(cc) is described in subsection (a)(2)(B).
                ``(ii) Exception for family or group day care homes.--
            Clause (i) shall not apply to a family or group day care 
            home.
            ``(C) Exception for certain sponsoring organizations.--
                ``(i) In general.--The State agency may approve an 
            eligible institution acting as a sponsoring organization 
            for one or more family or group day care homes or centers 
            that, at the time of application, is not participating in 
            the child and adult care food program only if the State 
            agency determines that--

                    ``(I) the institution meets the requirements 
                established by subparagraphs (A) and (B); and
                    ``(II) the participation of the institution will 
                help to ensure the delivery of benefits to otherwise 
                unserved family or group day care homes or centers or 
                to unserved children in an area.

                ``(ii) Criteria for selection.--The State agency shall 
            establish criteria for approving an eligible institution 
            acting as a sponsoring organization for one or more family 
            or group day care homes or centers that, at the time of 
            application, is not participating in the child and adult 
            care food program for the purpose of determining if the 
            participation of the institution will help ensure the 
            delivery of benefits to otherwise unserved family or group 
            day care homes or centers or to unserved children in an 
            area.
            ``(D) Notification to applicants.--Not later than 30 days 
        after the date on which an applicant institution files a 
        completed application with the State agency, the State agency 
        shall notify the applicant institution whether the institution 
        has been approved or disapproved to participate in the child 
        and adult care food program.''.
        (2) Site visits.--Section 17(d)(2)(A) of the Richard B. 
    Russell National School Lunch Act (42 U.S.C. 1766(d)(2)(A)) is 
    amended--
            (A) in clause (i), by striking ``; and'' and inserting a 
        semicolon;
            (B) by redesignating clause (ii) as clause (iii); and
            (C) by inserting after clause (i) the following:
        ``(ii)(I) requires periodic unannounced site visits at not less 
    than 3-year intervals to sponsored child care centers and family or 
    group day care homes to identify and prevent management 
    deficiencies and fraud and abuse under the program;
        ``(II) requires at least one scheduled site visit each year to 
    sponsored child care centers and family or group day care homes to 
    identify and prevent management deficiencies and fraud and abuse 
    under the program and to improve program operations; and
        ``(III) requires at least one scheduled site visit at not less 
    than 3-year intervals to sponsoring organizations and nonsponsored 
    child care centers to identify and prevent management deficiencies 
    and fraud and abuse under the program and to improve program 
    operations; and''.
        (3) Conforming amendment.--Section 17(d)(2)(B) of the Richard 
    B. Russell National School Lunch Act (42 U.S.C. 1766(d)(2)(B)) is 
    amended by striking ``subsection (a)(1)'' and inserting 
    ``subsection (a)(5)''.
        (4) Program information.--
            (A) In general.--Section 17(d) of the Richard B. 
        Russell National School Lunch Act (42 U.S.C. 1766(d)) is 
        amended by adding at the end the following:
        ``(3) Program information.--
            ``(A) In general.--On enrollment of a child in a sponsored 
        child care center or family or group day care home 
        participating in the program, the center or home (or its 
        sponsoring organization) shall provide to the child's parents 
        or guardians--
                ``(i) information that describes the program and its 
            benefits; and
                ``(ii) the name and telephone number of the sponsoring 
            organization of the center or home and the State agency 
            involved in the operation of the program.
            ``(B) Form.--The information described in subparagraph (A) 
        shall be in a form and, to the maximum extent practicable, 
        language easily understandable by the child's parents or 
        guardians.''.
            (B) Effective date.--In the case of a child that is 
        enrolled in a sponsored child care center or family or group 
        day care home participating in the child and adult care food 
        program under section 17 of the Richard B. Russell National 
        School Lunch Act (42 U.S.C. 1766) before the date of the 
        enactment of this Act, the center or home shall provide 
        information to the child's parents or guardians pursuant to 
        section 17(d)(3) of that Act, as added by subparagraph (A), not 
        later than 90 days after the date of the enactment of this Act.
        (5) Allowable administrative expenses for sponsoring 
    organizations.--Section 17(d) of the Richard B. Russell National 
    School Lunch Act (42 U.S.C. 1766(d)), as amended by paragraph 
    (4)(A), is amended by adding at the end the following:
        ``(4) Allowable administrative expenses for sponsoring 
    organizations.--In consultation with State agencies and sponsoring 
    organizations, the Secretary shall develop, and provide for the 
    dissemination to State agencies and sponsoring organizations of, a 
    list of allowable reimbursable administrative expenses for 
    sponsoring organizations under the program.''.
    (c) Termination or Suspension of Participating Organizations.--
Section 17(d) of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1766(d)), as amended by subsection (b)(5), is amended by adding 
at the end the following:
        ``(5) Termination or suspension of participating 
    organizations.--
            ``(A) In general.--The Secretary shall establish procedures 
        for the termination of participation by institutions and family 
        or group day care homes under the program.
            ``(B) Standards.--Procedures established pursuant to 
        subparagraph (A) shall include standards for terminating the 
        participation of an institution or family or group day care 
        home that--
                ``(i) engages in unlawful practices, falsifies 
            information provided to the State agency, or conceals a 
            criminal background; or
                ``(ii) substantially fails to fulfill the terms of its 
            agreement with the State agency.
            ``(C) Corrective action.--Procedures established pursuant 
        to subparagraph (A)--
                ``(i) shall require an entity described in subparagraph 
            (B) to undertake corrective action; and
                ``(ii) may require the immediate suspension of 
            operation of the program by an entity described in 
            subparagraph (B), without the opportunity for corrective 
            action, if the State agency determines that there is 
            imminent threat to the health or safety of a participant at 
            the entity or the entity engages in any activity that poses 
            a threat to public health or safety.
            ``(D) Hearing.--An institution or family or group day care 
        home shall be provided a fair hearing in accordance with 
        subsection (e)(1) prior to any determination to terminate 
        participation by the institution or family or group day care 
        home under the program.
            ``(E) List of disqualified institutions and individuals.--
                ``(i) In general.--The Secretary shall maintain a list 
            of institutions, sponsored family or group day care homes, 
            and individuals that have been terminated or otherwise 
            disqualified from participation in the program.
                ``(ii) Availability.--The Secretary shall make the list 
            available to State agencies for use in approving or 
            renewing applications by institutions, sponsored family or 
            group day care homes, and individuals for participation in 
            the program.''.
    (d) Recovery of Amounts From Institutions.--Section 17(f)(1) of the 
Richard B. Russell National School Lunch Act (42 U.S.C. 1766(f)(1)) is 
amended--
        (1) by striking ``(f)(1) Funds paid'' and inserting the 
    following:
    ``(f) State Disbursements to Institutions.--
        ``(1) In general.--
            ``(A) Requirement.--Funds paid''; and
        (2) by adding at the end the following:
            ``(B) Fraud or abuse.--
                ``(i) In general.--The State may recover funds 
            disbursed under subparagraph (A) to an institution if the 
            State determines that the institution has engaged in fraud 
            or abuse with respect to the program or has submitted an 
            invalid claim for reimbursement.
                ``(ii) Payment.--Amounts recovered under clause (i)--

                    ``(I) may be paid by the institution to the State 
                over a period of one or more years; and
                    ``(II) shall not be paid from funds used to provide 
                meals and supplements.

                ``(iii) Hearing.--An institution shall be provided a 
            fair hearing in accordance with subsection (e)(1) prior to 
            any determination to recover funds under this 
            subparagraph.''.
    (e) Limitation on Administrative Expenses for Certain Sponsoring 
Organizations.--Section 17(f)(2) of the Richard B. Russell National 
School Lunch Act (42 U.S.C. 1766(f)(2)) is amended by adding at the end 
the following:
            ``(C) Limitation on administrative expenses for 
        certain sponsoring organizations.--
                ``(i) In general.--Except as provided in clause (ii), a 
            sponsoring organization of a day care center may reserve 
            not more than 15 percent of the funds provided under 
            paragraph (1) for the administrative expenses of the 
            organization.
                ``(ii) Waiver.--A State may waive the requirement in 
            clause (i) with respect to a sponsoring organization if the 
            organization provides justification to the State that the 
            organization requires funds in excess of 15 percent of the 
            funds provided under paragraph (1) to pay the 
            administrative expenses of the organization.''.
    (f) Limitations on Ability of Family or Group Day Care Homes to 
Transfer Sponsoring Organizations.--Section 17(f)(3) of the Richard B. 
Russell National School Lunch Act (42 U.S.C. 1766(f)(3)) is amended by 
striking subparagraph (D) and inserting the following:
            ``(D) Limitations on ability of family or group day care 
        homes to transfer sponsoring organizations.--
                ``(i) In general.--Subject to clause (ii), a State 
            agency shall limit the ability of a family or group day 
            care home to transfer from a sponsoring organization to 
            another sponsoring organization more frequently than once a 
            year.
                ``(ii) Good cause.--The State agency may permit or 
            require a family or group day care home to transfer from a 
            sponsoring organization to another sponsoring organization 
            more frequently than once a year for good cause (as 
            determined by the State agency), including circumstances in 
            which the sponsoring organization of the family or group 
            day care home ceases to participate in the child and adult 
            care food program.''.
    (g) State-wide Demonstration Projects Involving Private For-Profit 
Organizations That Provide Nonresidential Day Care Services.--
        (1) In general.--Section 17(p) of the Richard B. Russell 
    National School Lunch Act (42 U.S.C. 1766(p)) is amended--
            (A) in the first sentence of paragraph (1), by striking ``2 
        statewide demonstration projects'' and inserting ``State-wide 
        demonstration projects in three States''; and
            (B) in paragraph (3)--
                (i) by inserting ``in'' after ``subsection'';
                (ii) in subparagraph (A), by striking ``and'' at the 
            end;
                (iii) in subparagraph (B), by striking the period at 
            the end and inserting ``; and''; and
                (iv) by adding at the end the following:
        ``(C) one other State--
            ``(i) with fewer than 60,000 children below 5 years of age;
            ``(ii) that serves more than the national average 
        proportion of children potentially eligible for assistance 
        provided under the Child Care and Development Fund (as 
        indicated in data published by the Department of Health and 
        Human Services in October 1999);
            ``(iii) that exempts all families from cost sharing 
        requirements under programs funded by the Child Care and 
        Development Fund; and
            ``(iv) in which State spending represents more than 50 
        percent of total expenditures made under the Child Care and 
        Development Fund.''.
        (2) Effective date.--The Secretary may carry out demonstration 
    projects in the State described in section 17(p)(3)(C) of the 
    Richard B. Russell National School Lunch Act, as added by paragraph 
    (1)(B)(iv), beginning not earlier than October 1, 2001.
    (h) Technical and Training Assistance for Identification and 
Prevention of Fraud and Abuse.--Section 17(q) of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1766(q)) is amended--
        (1) by redesignating paragraph (2) as paragraph (3); and
        (2) by inserting after paragraph (1) the following:
        ``(2) Technical and training assistance for identification and 
    prevention of fraud and abuse.--As part of training and technical 
    assistance provided under paragraph (1), the Secretary shall 
    provide training on a continuous basis to State agencies, and shall 
    ensure that such training is provided to sponsoring organizations, 
    for the identification and prevention of fraud and abuse under the 
    program and to improve management of the program.''.
    (i) Program for At-Risk School Children.--Section 17(r) of the 
Richard B. Russell National School Lunch Act (42 U.S.C. 1766(r)) is 
amended--
        (1) in paragraph (2), by inserting ``meals or'' before 
    ``supplements'';
        (2) in paragraph (4)--
            (A) in the heading, by striking ``Supplement'' and 
        inserting ``Meal and supplement'';
            (B) in subparagraph (A)--
                (i) by striking ``only for'' and all that follows 
            through ``(i) a supplement'' and inserting ``only for one 
            meal per child per day and one supplement per child per 
            day'';
                (ii) by striking ``; and'' and inserting a period; and
                (iii) by striking clause (ii);
            (C) in subparagraph (B), by striking ``Rate.--A 
        supplement'' and inserting the following: ``Rates.--
                ``(i) Meals.--A meal shall be reimbursed under this 
            subsection at the rate established for free meals under 
            subsection (c).
                ``(ii) Supplements.--A supplement''; and
            (D) in subparagraph (C), by inserting ``meal or'' before 
        ``supplement''; and
        (3) by adding at the end the following:
        ``(5) Limitation.--The Secretary shall limit reimbursement 
    under this subsection for meals served under a program to 
    institutions located in six States, of which four States shall be 
    Pennsylvania, Missouri, Delaware, and Michigan and two States shall 
    be approved by the Secretary through a competitive application 
    process.''.
    (j) Withholding of Funds for Failure to Provide Sufficient 
Training, Technical Assistance, and Monitoring.--Section 7(a)(9)(A) of 
the Child Nutrition Act of 1966 (42 U.S.C. 1776(a)(9)(A)) is amended by 
inserting after ``the Richard B. Russell National School Lunch Act (42 
U.S.C. 1751 et seq.)'' the following: ``(including any requirement to 
provide sufficient training, technical assistance, and monitoring of 
the child and adult care food program under section 17 of that Act (42 
U.S.C. 1766))''.

SEC. 244. ADJUSTMENTS TO WIC PROGRAM.

    (a) Definition.--Section 17(b) of the Child Nutrition Act of 1966 
(42 U.S.C. 1786(b)) is amended by adding at the end the following:
        ``(21) Remote indian or native village.--The term `remote 
    Indian or Native village' means an Indian or Native village that--
            ``(A) is located in a rural area;
            ``(B) has a population of less than 5,000 inhabitants; and
            ``(C) is not accessible year-around by means of a public 
        road (as defined in section 101 of title 23, United States 
        Code).''.
    (b) Cost-of-Living Allowances for Members of Uniformed Services.--
Section 17(d)(2)(B) of the Child Nutrition Act of 1966 (42 U.S.C. 
1786(d)(2)(B)) is amended--
        (1) by striking ``income any'' and inserting ``income--
        ``(i) any'';
        (2) by striking ``quarters'' and inserting ``housing'';
        (3) by striking the period at the end and inserting ``; and''; 
    and
        (4) by adding at the end the following:
        ``(ii) any cost-of-living allowance provided under section 405 
    of title 37, United States Code, to a member of a uniformed service 
    who is on duty outside the continental United States.''.
    (c) Proof of Residency.--Section 17(d)(3) of the Child Nutrition 
Act of 1966 (42 U.S.C. 1786(d)(3)) is amended by adding at the end the 
following:
            ``(F) Proof of residency.--An individual residing in a 
        remote Indian or Native village or an individual served by an 
        Indian tribal organization and residing on a reservation or 
        pueblo may, under standards established by the Secretary, 
        establish proof of residency under this section by providing to 
        the State agency the mailing address of the individual and the 
        name of the remote Indian or Native village.''.
    (d) Adjustment of Grant.--Section 17(h)(1)(B) of the Child 
Nutrition Act of 1966 (42 U.S.C. 1786(h)(1)(B)) is amended--
        (1) in clause (i), by striking ``the fiscal year 1987'' and 
    inserting ``the preceding fiscal year''; and
        (2) in clause (ii)--
            (A) by striking ``the fiscal year 1987'' and inserting 
        ``the preceding fiscal year''; and
            (B) by striking subclause (I) and inserting the following:
        ``(I) the value of the index for State and local government 
    purchases, as published by the Bureau of Economic Analysis of the 
    Department of Commerce, for the 12-month period ending June 30 of 
    the second preceding fiscal year; and''.
    (e) Allocation of Funds.--Section 17(h)(5) of the Child Nutrition 
Act of 1966 (42 U.S.C. 1786(h)(5)) is amended by adding at the end the 
following:
            ``(D) Remote indian or native villages.--For noncontiguous 
        States containing a significant number of remote Indian or 
        Native villages, a State agency may convert amounts allocated 
        for food benefits for a fiscal year to the costs of nutrition 
        services and administration to the extent that the conversion 
        is necessary to cover expenditures incurred in providing 
        services (including the full cost of air transportation and 
        other transportation) to remote Indian or Native villages and 
        to provide breastfeeding support in remote Indian or Native 
        villages.''.
    (f) Effective Dates.--
        (1) In general.--Except as provided in paragraph (2), the 
    amendments made by this section take effect on the date of the 
    enactment of this Act.
        (2) Allocation of funds.--The amendments made by subsections 
    (d) and (e) take effect on October 1, 2000.

                       Subtitle F--Other Programs

SEC. 251. AUTHORITY TO PROVIDE LOAN IN CONNECTION WITH BOLL WEEVIL 
              ERADICATION.

    (a) Loan Authority.--Notwithstanding any other provision of law, 
the Secretary, acting through the Farm Service Agency, shall use 
$10,000,000 of funds of the Commodity Credit Corporation to make a loan 
to the Texas Boll Weevil Eradication Foundation, Inc., to enable the 
Foundation to retire certain debt associated with boll weevil 
eradication zones which have ended their participation, in whole or in 
part, in the federally funded boll weevil eradication program.
    (b) Repayment Terms and Conditions.--The loan provided under 
subsection (a) shall be subject to the following terms and conditions:
        (1) Repayment shall be scheduled to begin on January 1 of the 
    year following the first year during which the boll weevil 
    eradication zone, or any part thereof, responsible for the debt 
    retired using the loan resumes participation in any federally 
    funded boll weevil eradication program.
        (2) No interest shall be charged.
    (c) Limitation.--The cost of the loan made under this section shall 
not exceed the loan subsidy sufficient to make the loan.

SEC. 252. ANIMAL DISEASE CONTROL.

    (a) Pseudorabies.--Of the amount made available under section 
261(a)(2), the Secretary shall use $7,000,000 to cover pseudorabies 
vaccination costs incurred by pork producers.
    (b) Bovine Tuberculosis.--Of the amount made available under 
section 261(a)(2), the Secretary shall use $6,000,000 to respond to 
bovine tuberculosis in the State of Michigan. The funds shall be 
available for the following purposes:
        (1) The surveillance and testing of cattle and wildlife.
        (2) Research regarding bovine tuberculosis, to be conducted by 
    the Agricultural Research Service and Michigan State University.
        (3) The provision of increased indemnity payments to encourage 
    the depopulation of infected herds.
        (4) The performance of diagnostic testing and treatment of 
    humans affected by bovine tuberculosis.
        (5) Slaughter surveillance.
        (6) The control and prevention of the exposure of livestock to 
    infected wildlife, including the installation of fencing to 
    minimize contact between livestock and wildlife.
        (7) The distribution of information regarding the risk and 
    control of bovine tuberculosis, including technological 
    improvements to enhance communication.

SEC. 253. EMERGENCY LOANS FOR SEED PRODUCERS.

    (a) In General.--Of the amount made available under section 
261(a)(2), the Secretary shall use $35,000,000, plus $200,000 for 
payment of administrative costs, to make no-interest loans to producers 
of the 1999 crop of grass, forage, vegetable, and sorghum seed that 
have not received payments from AgriBiotech for the seed as a result of 
bankruptcy proceedings involving AgriBiotech (referred to in this 
section as the ``bankruptcy proceedings'').
    (b) Loans.--
        (1) In general.--The amount of the loan made to a seed producer 
    under this section shall be not more than 65 percent of the amount 
    owed by AgriBiotech to the seed producer for the 1999 seed crop, as 
    determined by the Secretary.
        (2) Eligibility.--To be eligible for a loan under this section, 
    the claim of a seed producer in the bankruptcy proceedings must 
    have arisen from a contract to grow seeds in the United States.
        (3) Control.--In determining the amount owed by AgriBiotech to 
    a seed producer under paragraph (1), the Secretary shall consider 
    whether the seed producer has relinquished control of the seed to 
    AgriBiotech or has the seed in inventory waiting to be sold.
        (4) Security.--A loan to a seed producer under this section 
    shall be secured in part by the claim of the seed producer in the 
    bankruptcy proceedings.
        (5) Repayment.--Each seed producer shall repay to the 
    Secretary, for deposit in the Treasury, the amount of the loan made 
    to the seed producer on the earlier of--
            (A) the date of settlement of, completion of, or final 
        distribution of assets in the bankruptcy proceedings involving 
        AgriBiotech; or
            (B) the date that is 18 months after the date on which the 
        loan was made to the seed producer.
    (c) Additional Terms.--
        (1) Shortfall in amount received from bankruptcy proceedings.--
    If the amount that the seed producer receives as a result of the 
    proceedings described in subsection (b)(5)(A) is less than the 
    amount of the loan made to the seed producer under subsection 
    (b)(1), the seed producer shall be eligible to have the balance of 
    the loan converted, but not refinanced, to a loan that has the same 
    terms and conditions as an operating loan under subtitle B of the 
    Consolidated Farm and Rural Development Act (7 U.S.C. 1941 et 
    seq.).
        (2) Lengthy bankruptcy proceedings.--If a seed producer is 
    required to repay a loan under subsection (b)(5)(B), the seed 
    producer shall be eligible to have the balance of the loan 
    converted, but not refinanced, to a loan that has the same terms 
    and conditions as an operating loan under subtitle B of the 
    Consolidated Farm and Rural Development Act (7 U.S.C. 1941 et 
    seq.).
    (d) Limitation.--The cost of all loans made under this section 
shall not exceed $15,000,000.

SEC. 254. TEMPORARY SUSPENSION OF AUTHORITY TO COMBINE CERTAIN OFFICES.

    (a) Suspension.--During the period beginning on the date of the 
enactment of this Act and ending on June 1, 2001, the Secretary may not 
combine or take any action to combine, at the State level, offices of 
the agencies specified in subsection (b) unless the offices are located 
in the same county as of the date of the enactment of this Act.
    (b) Covered Offices.--Subsection (a) applies to an office of any of 
the following agencies:
        (1) The Farm Service Agency.
        (2) The Natural Resources Conservation Service.
        (3) The Rural Utilities Service.
        (4) The Rural Housing Service.
        (5) The Rural Business-Cooperative Service.
    (c) Report.--Not later than April 1, 2001, the Secretary shall 
submit to the Committee on Agriculture of the House of Representatives 
and the Committee on Agriculture, Nutrition, and Forestry of the Senate 
a report describing any proposed combination of offices specified in 
subsection (b) that includes a certification that the proposed 
combination would result in the lowest cost to the Federal Government 
over the long term.

SEC. 255. FARM OPERATING LOAN ELIGIBILITY.

    During the period beginning on the date of the enactment of this 
Act and ending on December 31, 2002--
        (1) sections 311(c) and 319 of the Consolidated Farm and Rural 
    Development Act (7 U.S.C. 1941(c), 1949) shall have no force or 
    effect; and
        (2) in making direct loans under subtitle B of that Act (7 
    U.S.C. 1941 et seq.), the Secretary shall give priority to 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.

SEC. 256. WATER SYSTEMS FOR RURAL AND NATIVE VILLAGES IN ALASKA.

    Section 306D of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1926d) is amended by striking subsection (d) and inserting the 
following:
    ``(d) Authorization of Appropriations.--
        ``(1) In general.--There are authorized to be appropriated to 
    carry out this section $30,000,000 for each of fiscal years 2001 
    and 2002.
        ``(2) Training and technical assistance.--Not more than 2 
    percent of the amount made available under paragraph (1) for a 
    fiscal year may be used by the State of Alaska for training and 
    technical assistance programs relating to the operation and 
    management of water and waste disposal services in rural and Native 
    villages.
        ``(3) Availability.--Funds appropriated pursuant to the 
    authorization of appropriations in paragraph (1) shall be available 
    until expended.''.

SEC. 257. CROP AND PASTURE FLOOD COMPENSATION PROGRAM.

    (a) Definition of Covered Land.--In this section:
        (1) In general.--The term ``covered land'' means land that--
            (A) was unusable for agricultural production during the 
        2000 crop year as the result of flooding;
            (B) was used for agricultural production during at least 
        one of the 1992 through 1999 crop years;
            (C) is a contiguous parcel of land of at least 1 acre; and
            (D) is located in a county in which producers were eligible 
        for assistance under the 1998 Flood Compensation Program 
        established under part 1439 of title 7, Code of Federal 
        Regulations.
        (2) Exclusions.--The term ``covered land'' excludes any land 
    for which a producer is insured, enrolled, or assisted during the 
    2000 crop year under--
            (A) a policy or plan of insurance authorized under the 
        Federal Crop Insurance Act (7 U.S.C. 1501 et seq.);
            (B) the noninsured crop assistance program operated under 
        section 196 of the Agricultural Market Transition Act (7 U.S.C. 
        7333);
            (C) any crop disaster program established for the 2000 crop 
        year;
            (D) the conservation reserve program established under 
        subchapter B of chapter 1 of subtitle D of the Food Security 
        Act of 1985 (16 U.S.C. 3831 et seq.);
            (E) the wetlands reserve program established under 
        subchapter C of chapter 1 of subtitle D of the Food Security 
        Act of 1985 (16 U.S.C. 3837 et seq.);
            (F) any emergency watershed protection program or Federal 
        easement program that prohibits crop production or grazing; or
            (G) any other Federal or State water storage program, as 
        determined by the Secretary.
    (b) Compensation.--The Secretary shall use not more than 
$24,000,000 of funds of the Commodity Credit Corporation to compensate 
producers with covered land described with respect to losses from long-
term flooding.
    (c) Payment Rate.--The payment rate for compensation provided to a 
producer under this section shall equal the average county cash rental 
rate per acre established by the National Agricultural Statistics 
Service for the 2000 crop year.
    (d) Payment Limitation.--The total amount of payments made to a 
person (as defined in section 1001(5) of the Food Security Act (7 
U.S.C. 1308(5))) under this section may not exceed $40,000.
    (e) Conforming Amendment.--H.R. 3425 of the 106th Congress (as 
enacted into law by section 1000(a)(5) of Public Law 106-113 (113 Stat. 
1535) and included as Appendix E of that Public Law (113 Stat. 1501A-
289)) is amended in section 207 (113 Stat. 1501A-294) by inserting ``or 
Lake'' after ``Harney''.

SEC. 258. FLOOD MITIGATION NEAR PIERRE, SOUTH DAKOTA.

    (a) Requirement.--Subject to subsection (b), as soon as practicable 
after the date of the enactment of this Act, with respect to land and 
property described in the Flood Mitigation Study and Project 
Implementation Plan for the Missouri River near Pierre, South Dakota, 
prepared by the Omaha District Corps of Engineers, dated August 12, 
1999, the Secretary of the Army shall--
        (1) acquire the land and property from willing sellers; and
        (2)(A) floodproof the land;
        (B) relocate individuals located on the land;
        (C) improve infrastructure on the land; or
        (D) take other measures determined by the Secretary.
    (b) Releases.--
        (1) In general.--The Secretary shall not proceed with full 
    wintertime Oahe Powerplant releases until the Secretary amends the 
    economic analysis in effect on the date of the enactment of this 
    Act to include an assumption that the Federal Government is 
    responsible for mitigating any existing ground water flooding to 
    the land and property described in subsection (a).
        (2) Reduction.--To the extent the Secretary identifies benefits 
    of mitigating any existing ground water flooding, full wintertime 
    Oahe Powerplant releases shall be reduced consistent with the 
    economic analysis described in paragraph (1).
        (3) Minimum level.--This subsection shall not permit Oahe 
    Powerplant releases to be reduced below existing operational 
    levels.

SEC. 259. RESTORATION OF ELIGIBILITY FOR CROP LOSS ASSISTANCE.

    (a) Effect of Change in Legal Structure.--In the case of an 
individual or entity that was not eligible for a payment pursuant to 
subsection (c) of section 1102 of the Agriculture, Rural Development, 
Food and Drug Administration, and Related Agencies Appropriations Act, 
1999 (as contained in section 101(a) of division A of Public Law 105-
277; 7 U.S.C. 1421 note), solely because the individual or entity 
changed the legal structure of the individual's or entity's farming 
operation, the individual or entity shall be eligible for the payment 
the individual or entity would have received pursuant to that 
subsection had the individual or entity not changed the legal 
structure, less the amount of any payment received by the individual or 
entity pursuant to subsection (b) of that section.
    (b) Multiple Farming Operations.--
        (1) Eligible individuals.--In the case of an individual not 
    described in subsection (a) that farmed acreage as a producer as a 
    part of more than one farming operation, none of which received a 
    payment pursuant to subsection (c) of section 1102 of the 
    Agriculture, Rural Development, Food and Drug Administration, and 
    Related Agencies Appropriations Act, 1999, the individual shall be 
    eligible for a payment pursuant to that subsection for losses that 
    the Secretary determines would have been eligible for compensation 
    with respect to that acreage based on the individual's interest in 
    the production from that acreage.
        (2) Reduction.--A payment made pursuant to paragraph (1) to an 
    individual shall be reduced by the amount of a payment made 
    pursuant to subsection (b) of that section 1102 attributed directly 
    or indirectly to the individual with respect to the acreage 
    described in paragraph (1).

                       Subtitle G--Administration

SEC. 261. FUNDING.

    (a) Payment.--Out of any moneys in the Treasury not otherwise 
appropriated, the Secretary of the Treasury shall provide to the 
Secretary the following:
        (1) $34,000,000 for fiscal year 2000 to carry out section 
    241(a).
        (2) $465,500,000 for fiscal year 2001 to carry out the 
    following:
            (A) Section 203 (other than subsection (f)).
            (B) Subtitle C.
            (C) Section 231.
            (D) Section 241 (other than subsection (a)).
            (E) Sections 252 and 253.
    (b) Acceptance.--The Secretary shall be entitled to receive the 
funds and shall accept the funds, without further appropriation.

SEC. 262. OBLIGATION PERIOD.

    Except as otherwise provided in this title, the Secretary and the 
Commodity Credit Corporation shall obligate and expend--
        (1) funds made available under section 261(a)(1) only during 
    fiscal year 2000; and
        (2) funds made available under section 261(a)(2), and funds of 
    the Commodity Credit Corporation made available under this title, 
    only during fiscal year 2001.

SEC. 263. REGULATIONS.

    (a) Promulgation.--As soon as practicable after the date of the 
enactment of this Act, the Secretary and the Commodity Credit 
Corporation, as appropriate, shall promulgate such regulations as are 
necessary to implement this title and the amendments made by this 
title. The promulgation of the regulations and administration of this 
title shall be made without regard to--
        (1) the notice and comment provisions of section 553 of title 
    5, United States Code;
        (2) the Statement of Policy of the Secretary of Agriculture 
    effective July 24, 1971 (36 Fed. Reg. 13804), relating to notices 
    of proposed rulemaking and public participation in rulemaking; and
        (3) chapter 35 of title 44, United States Code (commonly known 
    as the ``Paperwork Reduction Act'').
    (b) Congressional Review of Agency Rulemaking.--In carrying out 
this section, the Secretary shall use the authority provided under 
section 808 of title 5, United States Code.

SEC. 264. PAYGO ADJUSTMENT.

    The Director of the Office of Management and Budget shall not make 
any estimates of changes in direct spending outlays and receipts under 
section 252(d) of the Balanced Budget and Emergency Deficit Control Act 
of 1985 (2 U.S.C. 902(d)) resulting from enactment of this title.

SEC. 265. COMMODITY CREDIT CORPORATION REIMBURSEMENT.

    Out of any moneys in the Treasury not otherwise appropriated, the 
Secretary of the Treasury shall use such sums as may be necessary to 
reimburse the Commodity Credit Corporation for net realized losses 
sustained, but not previously reimbursed, under this title.

        TITLE III--BIOMASS RESEARCH AND DEVELOPMENT ACT OF 2000

SEC. 301. SHORT TITLE.

    This title may be cited as the ``Biomass Research and Development 
Act of 2000''.

SEC. 302. FINDINGS.

    Congress finds that--
        (1) conversion of biomass into biobased industrial products 
    offers outstanding potential for benefit to the national interest 
    through--
            (A) improved strategic security and balance of payments;
            (B) healthier rural economies;
            (C) improved environmental quality;
            (D) near-zero net greenhouse gas emissions;
            (E) technology export; and
            (F) sustainable resource supply;
        (2) the key technical challenges to be overcome in order for 
    biobased industrial products to be cost-competitive are finding new 
    technology and reducing the cost of technology for converting 
    biomass into desired biobased industrial products;
        (3) biobased fuels, such as ethanol, have the clear potential 
    to be sustainable, low cost, and high performance fuels that are 
    compatible with both current and future transportation systems and 
    provide near-zero net greenhouse gas emissions;
        (4) biobased chemicals have the clear potential for 
    environmentally benign product life cycles;
        (5) biobased power can--
            (A) provide environmental benefits;
            (B) promote rural economic development; and
            (C) diversify energy resource options;
        (6) many biomass feedstocks suitable for industrial processing 
    show the clear potential for sustainable production, in some cases 
    resulting in improved soil fertility and carbon sequestration;
        (7)(A) grain processing mills are biorefineries that produce a 
    diversity of useful food, chemical, feed, and fuel products; and
        (B) technologies that result in further diversification of the 
    range of value-added biobased industrial products can meet a key 
    need for the grain processing industry;
        (8)(A) cellulosic feedstocks are attractive because of their 
    low cost and widespread availability; and
        (B) research resulting in cost-effective technology to overcome 
    the recalcitrance of cellulosic biomass would allow biorefineries 
    to produce fuels and bulk chemicals on a very large scale, with a 
    commensurately large realization of the benefit described in 
    paragraph (1);
        (9) research into the fundamentals to understand important 
    mechanisms of biomass conversion can be expected to accelerate the 
    application and advancement of biomass processing technology by--
            (A) increasing the confidence and speed with which new 
        technologies can be scaled up; and
            (B) giving rise to processing innovations based on new 
        knowledge;
        (10) the added utility of biobased industrial products 
    developed through improvements in processing technology would 
    encourage the design of feedstocks that would meet future needs 
    more effectively;
        (11) the creation of value-added biobased industrial products 
    would create new jobs in construction, manufacturing, and 
    distribution, as well as new higher-valued exports of products and 
    technology;
        (12)(A) because of the relatively short-term time horizon 
    characteristic of private sector investments, and because many 
    benefits of biomass processing are in the national interest, it is 
    appropriate for the Federal Government to provide precommercial 
    investment in fundamental research and research-driven innovation 
    in the biomass processing area; and
        (B) such an investment would provide a valuable complement to 
    ongoing and past governmental support in the biomass processing 
    area; and
        (13) several prominent studies, including studies by the 
    President's Committee of Advisors on Science and Technology and the 
    National Research Council--
            (A) support the potential for large research-driven 
        advances in technologies for production of biobased industrial 
        products as well as associated benefits; and
            (B) document the need for a focused, integrated, and 
        innovation-driven research effort to provide the appropriate 
        progress in a timely manner.

SEC. 303. DEFINITIONS.

    In this title:
        (1) Advisory committee.--The term ``Advisory Committee'' means 
    the Biomass Research and Development Technical Advisory Committee 
    established by section 306.
        (2) Biobased industrial product.--The term ``biobased 
    industrial product'' means fuels, chemicals, building materials, or 
    electric power or heat produced from biomass.
        (3) Biomass.--The term ``biomass'' means any organic matter 
    that is available on a renewable or recurring basis, including 
    agricultural crops and trees, wood and wood wastes and residues, 
    plants (including aquatic plants), grasses, residues, fibers, and 
    animal wastes, municipal wastes, and other waste materials.
        (4) Board.--The term ``Board'' means the Biomass Research and 
    Development Board established by section 305.
        (5) Initiative.--The term ``Initiative'' means the Biomass 
    Research and Development Initiative established under section 307.
        (6) Institution of higher education.--The term ``institution of 
    higher education'' has the meaning given the term in section 102(a) 
    of the Higher Education Act of 1965 (20 U.S.C. 1002(a)).
        (7) National laboratory.--The term ``national laboratory'' has 
    the meaning given the term ``laboratory'' in section 12(d) of the 
    Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 
    3710a(d)).
        (8) Point of contact.--The term ``point of contact'' means a 
    point of contact designated under section 304(d).
        (9) Processing.--The term ``processing'' means the derivation 
    of biobased industrial products from biomass, including--
            (A) feedstock production;
            (B) harvest and handling;
            (C) pretreatment or thermochemical processing;
            (D) fermentation;
            (E) catalytic processing;
            (F) product recovery; and
            (G) coproduct production.
        (10) Research and development.--The term ``research and 
    development'' means research, development, and demonstration.

SEC. 304. COOPERATION AND COORDINATION IN BIOMASS RESEARCH AND 
              DEVELOPMENT.

    (a) In General.--The Secretary of Agriculture and the Secretary of 
Energy shall cooperate with respect to, and coordinate, policies and 
procedures that promote research and development leading to the 
production of biobased industrial products.
    (b) Purposes.--The purposes of the cooperation and coordination 
shall be--
        (1) to understand the key mechanisms underlying the 
    recalcitrance of biomass for conversion into biobased industrial 
    products;
        (2) to develop new and cost-effective technologies that would 
    result in large-scale commercial production of low cost and 
    sustainable biobased industrial products;
        (3) to ensure that biobased industrial products are developed 
    in a manner that enhances their economic, energy security, and 
    environmental benefits; and
        (4) to promote the development and use of agricultural and 
    energy crops for conversion into biobased industrial products.
    (c) Areas.--In carrying out this title, the Secretary of 
Agriculture and the Secretary of Energy, in consultation with heads of 
appropriate departments and agencies, shall promote research and 
development--
        (1) to advance the availability and widespread use of energy 
    efficient, economically competitive, and environmentally sound 
    biobased industrial products in a manner that is consistent with 
    the goals of the United States relating to sustainable and secure 
    supplies of food, chemicals, and fuel;
        (2) to ensure full consideration of Federal land and land 
    management programs as potential feedstock resources for biobased 
    industrial products; and
        (3) to assess the environmental, economic, and social impact of 
    production of biobased industrial products from biomass on a large 
    scale.
    (d) Points of Contact.--
        (1) In general.--To coordinate research and development 
    programs and activities relating to biobased industrial products 
    that are carried out by their respective Departments--
            (A) the Secretary of Agriculture shall designate, as the 
        point of contact for the Department of Agriculture, an officer 
        of the Department of Agriculture appointed by the President to 
        a position in the Department before the date of the 
        designation, by and with the advice and consent of the Senate; 
        and
            (B) the Secretary of Energy shall designate, as the point 
        of contact for the Department of Energy, an officer of the 
        Department of Energy appointed by the President to a position 
        in the Department before the date of the designation, by and 
        with the advice and consent of the Senate.
        (2) Duties.--The points of contact shall jointly--
            (A) assist in arranging interlaboratory and site-specific 
        supplemental agreements for research and development projects 
        relating to biobased industrial products;
            (B) serve as cochairpersons of the Board;
            (C) administer the Initiative; and
            (D) respond in writing to each recommendation of the 
        Advisory Committee made under section 306(c).

SEC. 305. BIOMASS RESEARCH AND DEVELOPMENT BOARD.

    (a) Establishment.--There is established the Biomass Research and 
Development Board, which shall supersede the Interagency Council on 
Biobased Products and Bioenergy established by Executive Order No. 
13134, to coordinate programs within and among departments and agencies 
of the Federal Government for the purpose of promoting the use of 
biobased industrial products by--
        (1) maximizing the benefits deriving from Federal grants and 
    assistance; and
        (2) bringing coherence to Federal strategic planning.
    (b) Membership.--The Board shall consist of--
        (1) the point of contact of the Department of Energy designated 
    under section 304(d)(1)(B), who shall serve as cochairperson of the 
    Board;
        (2) the point of contact of the Department of Agriculture 
    designated under section 304(d)(1)(A), who shall serve as 
    cochairperson of the Board;
        (3) a senior officer of each of the Department of the Interior, 
    the Environmental Protection Agency, the National Science 
    Foundation, and the Office of Science and Technology Policy, each 
    of whom shall--
            (A) be appointed by the head of the respective agency; and
            (B) have a rank that is equivalent to the rank of the 
        points of contact; and
        (4) at the option of the Secretary of Agriculture and the 
    Secretary of Energy, other members appointed by the Secretaries 
    (after consultation with the members described in paragraphs (1) 
    through (3)).
    (c) Duties.--The Board shall--
        (1) coordinate research and development activities relating to 
    biobased industrial products--
            (A) between the Department of Agriculture and the 
        Department of Energy; and
            (B) with other departments and agencies of the Federal 
        Government; and
        (2) provide recommendations to the points of contact concerning 
    administration of this title.
    (d) Funding.--Each agency represented on the Board is encouraged to 
provide funds for any purpose under this title.
    (e) Meetings.--The Board shall meet at least quarterly to enable 
the Board to carry out the duties of the Board under subsection (c).

SEC. 306. BIOMASS RESEARCH AND DEVELOPMENT TECHNICAL ADVISORY 
              COMMITTEE.

    (a) Establishment.--There is established the Biomass Research and 
Development Technical Advisory Committee, which shall supersede the 
Advisory Committee on Biobased Products and Bioenergy established by 
Executive Order No. 13134--
        (1) to advise the Secretary of Energy, the Secretary of 
    Agriculture, and the points of contact concerning--
            (A) the technical focus and direction of requests for 
        proposals issued under the Initiative; and
            (B) procedures for reviewing and evaluating the proposals;
        (2) to facilitate consultations and partnerships among 
    Federal and State agencies, agricultural producers, industry, 
    consumers, the research community, and other interested groups to 
    carry out program activities relating to the Initiative; and
        (3) to evaluate and perform strategic planning on program 
    activities relating to the Initiative.
    (b) Membership.--
        (1) In general.--The Advisory Committee shall consist of--
            (A) an individual affiliated with the biobased industrial 
        products industry;
            (B) an individual affiliated with an institution of higher 
        education who has expertise in biobased industrial products;
            (C) two prominent engineers or scientists from government 
        or academia who have expertise in biobased industrial products;
            (D) an individual affiliated with a commodity trade 
        association;
            (E) an individual affiliated with an environmental or 
        conservation organization;
            (F) an individual associated with State government who has 
        expertise in biobased industrial products;
            (G) an individual with expertise in energy analysis;
            (H) an individual with expertise in the economics of 
        biobased industrial products;
            (I) an individual with expertise in agricultural economics; 
        and
            (J) at the option of the points of contact, other members.
        (2) Appointment.--The members of the Advisory Committee shall 
    be appointed by the points of contact.
    (c) Duties.--The Advisory Committee shall--
        (1) advise the points of contact with respect to the 
    Initiative; and
        (2) evaluate whether, and make recommendations in writing to 
    the Board to ensure that--
            (A) funds authorized for the Initiative are distributed and 
        used in a manner that is consistent with the goals of the 
        Initiative;
            (B) the points of contact are funding proposals under this 
        title that are selected on the basis of merit, as determined by 
        an independent panel of scientific and technical peers; and
            (C) activities under this title are carried out in 
        accordance with this title.
    (d) Coordination.--To avoid duplication of effort, the Advisory 
Committee shall coordinate its activities with those of other Federal 
advisory committees working in related areas.
    (e) Meetings.--The Advisory Committee shall meet at least quarterly 
to enable the Advisory Committee to carry out the duties of the 
Advisory Committee under subsection (c).
    (f) Terms.--Members of the Advisory Committee shall be appointed 
for a term of 3 years, except that--
        (1) one-third of the members initially appointed shall be 
    appointed for a term of 1 year; and
        (2) one-third of the members initially appointed shall be 
    appointed for a term of 2 years.

SEC. 307. BIOMASS RESEARCH AND DEVELOPMENT INITIATIVE.

    (a) In General.--The Secretary of Agriculture and the Secretary of 
Energy, acting through their respective points of contact and in 
consultation with the Board, shall establish and carry out a Biomass 
Research and Development Initiative under which competitively awarded 
grants, contracts, and financial assistance are provided to, or entered 
into with, eligible entities to carry out research on biobased 
industrial products.
    (b) Purposes.--The purposes of grants, contracts, and assistance 
under this section shall be--
        (1) to stimulate collaborative activities by a diverse range of 
    experts in all aspects of biomass processing for the purpose of 
    conducting fundamental and innovation-targeted research and 
    technology development;
        (2) to enhance creative and imaginative approaches toward 
    biomass processing that will serve to develop the next generation 
    of advanced technologies making possible low cost and sustainable 
    biobased industrial products;
        (3) to strengthen the intellectual resources of the United 
    States through the training and education of future scientists, 
    engineers, managers, and business leaders in the field of biomass 
    processing; and
        (4) to promote integrated research partnerships among colleges, 
    universities, national laboratories, Federal and State research 
    agencies, and the private sector as the best means of overcoming 
    technical challenges that span multiple research and engineering 
    disciplines and of gaining better leverage from limited Federal 
    research funds.
    (c) Eligible Entities.--
        (1) In general.--To be eligible for a grant, contract, or 
    assistance under this section, an applicant shall be--
            (A) an institution of higher education;
            (B) a national laboratory;
            (C) a Federal research agency;
            (D) a State research agency;
            (E) a private sector entity;
            (F) a nonprofit organization; or
            (G) a consortium of two or more entities described in 
        subparagraphs (A) through (F).
        (2) Administration.--After consultation with the Board, the 
    points of contact shall--
            (A) publish annually one or more joint requests for 
        proposals for grants, contracts, and assistance under this 
        section;
            (B) establish a priority in grants, contracts, and 
        assistance under this section for research that--
                (i) demonstrates potential for significant advances in 
            biomass processing;
                (ii) demonstrates potential to substantially further 
            scale-sensitive national objectives such as--

                    (I) sustainable resource supply;
                    (II) reduced greenhouse gas emissions;
                    (III) healthier rural economies; and
                    (IV) improved strategic security and trade 
                balances; and

                (iii) would improve knowledge of important biomass 
            processing systems that demonstrate potential for 
            commercial applications;
            (C) require that grants, contracts, and assistance under 
        this section be awarded competitively, on the basis of merit, 
        after the establishment of procedures that provide for 
        scientific peer review by an independent panel of scientific 
        and technical peers; and
            (D) give preference to applications that--
                (i) involve a consortia of experts from multiple 
            institutions; and
                (ii) encourage the integration of disciplines and 
            application of the best technical resources.
    (d) Uses of Grants, Contracts, and Assistance.--A grant, contract, 
or assistance under this section may be used to conduct--
        (1) research on process technology for overcoming the 
    recalcitrance of biomass, including research on key mechanisms, 
    advanced technologies, and demonstration test beds for--
            (A) feedstock pretreatment and hydrolysis of cellulose and 
        hemicellulose, including new technologies for--
                (i) enhanced sugar yields;
                (ii) lower overall chemical use;
                (iii) less costly materials; and
                (iv) cost reduction;
            (B) development of novel organisms and other approaches to 
        substantially lower the cost of cellulase enzymes and enzymatic 
        hydrolysis, including dedicated cellulase production and 
        consolidated bioprocessing strategies; and
            (C) approaches other than enzymatic hydrolysis for 
        overcoming the recalcitrance of cellulosic biomass;
        (2) research on technologies for diversifying the range of 
    products that can be efficiently and cost-competitively produced 
    from biomass, including research on--
            (A) metabolic engineering of biological systems (including 
        the safe use of genetically modified crops) to produce novel 
        products, especially commodity products, or to increase product 
        selectivity and tolerance, with a research priority for the 
        development of biobased industrial products that can compete in 
        performance and cost with fossil-based products;
            (B) catalytic processing to convert intermediates of 
        biomass processing into products of interest;
            (C) separation technologies for cost-effective product 
        recovery and purification;
            (D) approaches other than metabolic engineering and 
        catalytic conversion of intermediates of biomass processing;
            (E) advanced biomass gasification technologies, including 
        coproduction of power and heat as an integrated component of 
        biomass processing, with the possibility of generating excess 
        electricity for sale; and
            (F) related research in advanced turbine and stationary 
        fuel cell technology for production of electricity from 
        biomass; and
        (3) research aimed at ensuring the environmental performance 
    and economic viability of biobased industrial products and their 
    raw material input of biomass when considered as an integrated 
    system, including research on--
            (A) the analysis of, and strategies to enhance, the 
        environmental performance and sustainability of biobased 
        industrial products, including research on--
                (i) accurate measurement and analysis of greenhouse gas 
            emissions, carbon sequestration, and carbon cycling in 
            relation to the life cycle of biobased industrial products 
            and feedstocks with respect to other alternatives;
                (ii) evaluation of current and future biomass resource 
            availability;
                (iii) development and analysis of land management 
            practices and alternative biomass cropping systems that 
            ensure the environmental performance and sustainability of 
            biomass production and harvesting;
                (iv) the land, air, water, and biodiversity impacts of 
            large-scale biomass production, processing, and use of 
            biobased industrial products relative to other 
            alternatives; and
                (v) biomass gasification and combustion to produce 
            electricity;
            (B) the analysis of, and strategies to enhance, the 
        economic viability of biobased industrial products, including 
        research on--
                (i) the cost of the required process technology;
                (ii) the impact of coproducts, including food, animal 
            feed, and fiber, on biobased industrial product price and 
            large-scale economic viability; and
                (iii) interactions between an emergent biomass refining 
            industry and the petrochemical refining infrastructure; and
            (C) the field and laboratory research related to feedstock 
        production with the interrelated goals of enhancing the 
        sustainability, increasing productivity, and decreasing the 
        cost of biomass processing, including research on--
                (i) altering biomass to make biomass easier and less 
            expensive to process;
                (ii) existing and new agricultural and energy crops 
            that provide a sustainable resource for conversion to 
            biobased industrial products while simultaneously serving 
            as a source for coproducts such as food, animal feed, and 
            fiber;
                (iii) improved technologies for harvest, collection, 
            transport, storage, and handling of crop and residue 
            feedstocks; and
                (iv) development of economically viable cropping 
            systems that improve the conservation and restoration of 
            marginal land; or
        (4) any research and development in technologies or processes 
    determined by the Secretary of Agriculture and the Secretary of 
    Energy, acting through their respective points of contact and in 
    consultation with the Board, to be consistent with the purposes 
    described in subsection (b) and the priority described in 
    subsection (c)(2)(B).
    (e) Technology and Information Transfer to Agricultural Users.--
        (1) In general.--The Administrator of the Cooperative State 
    Research, Education, and Extension Service and the Chief of the 
    Natural Resources Conservation Service shall ensure that applicable 
    research results and technologies from the Initiative are adapted, 
    made available, and disseminated through their respective services, 
    as appropriate.
        (2) Report.--Not later than 5 years after the date of the 
    enactment of this Act, the Administrator of the Cooperative State 
    Research, Education, and Extension Service and the Chief of the 
    Natural Resources Conservation Service shall submit to the 
    committees of Congress with jurisdiction over the Initiative a 
    report on the activities conducted by the services under this 
    subsection.
    (f) Authorization of Appropriations.--In addition to funds 
appropriated for biomass research and development under the general 
authority of the Secretary of Energy to conduct research and 
development programs (which may also be used to carry out this title), 
there are authorized to be appropriated to the Department of 
Agriculture to carry out this title $49,000,000 for each of fiscal 
years 2000 through 2005.

SEC. 308. ADMINISTRATIVE SUPPORT AND FUNDS.

    (a) In General.--To the extent administrative support and funds are 
not provided by other agencies under subsection (b), the Secretary of 
Energy and the Secretary of Agriculture may provide such administrative 
support and funds of the Department of Energy and the Department of 
Agriculture to the Board and the Advisory Committee as are necessary to 
enable the Board and the Advisory Committee to carry out their duties 
under this title.
    (b) Other Agencies.--The heads of the agencies referred to in 
section 305(b)(3), and the other members appointed under section 
305(b)(4), may, and are encouraged to, provide administrative support 
and funds of their respective agencies to the Board and the Advisory 
Committee.
    (c) Limitation.--Not more than 4 percent of the amount appropriated 
for each fiscal year under section 307(f) may be used to pay the 
administrative costs of carrying out this title.

SEC. 309. REPORTS.

    (a) Initial Report.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Energy and the Secretary of 
Agriculture shall jointly submit to Congress a report that--
        (1) identifies the points of contact, the members of the Board, 
    and the members of the Advisory Committee;
        (2) describes the status of current biobased industrial product 
    research and development efforts in both the Federal Government and 
    private sector;
        (3) includes a section prepared by the Board that establishes a 
    set of criteria to assess the potential of biobased industrial 
    products, which shall include for both biomass production and 
    transformation into biobased industrial products--
            (A) an energy accounting;
            (B) an environmental impact assessment; and
            (C) an economic assessment; and
        (4) describes the research and development goals of the 
    Initiative, including how funds will be allocated in order to 
    accomplish those goals.
    (b) Annual Reports.--For each fiscal year for which funds are made 
available to carry out this title, the Secretary of Energy and the 
Secretary of Agriculture shall jointly submit to Congress a detailed 
report on--
        (1) the status and progress of the Initiative, including a 
    report from the Advisory Committee on whether funds appropriated 
    for the Initiative have been distributed and used in a manner 
    that--
            (A) is consistent with the purposes described in section 
        307(b);
            (B) uses the set of criteria established under subsection 
        (a)(3); and
            (C) takes into account any recommendations that have been 
        made by the Advisory Committee;
        (2) the general status of cooperation and research and 
    development efforts carried out at each agency with respect to 
    biobased industrial products, including a report from the Advisory 
    Committee on whether the points of contact are funding proposals 
    that are selected under section 307(c)(2)(C); and
        (3) the plans of the Secretary of Energy and the Secretary of 
    Agriculture for addressing concerns raised in the report, including 
    concerns raised by the Advisory Committee.

SEC. 310. TERMINATION OF AUTHORITY.

    The authority provided under this title shall terminate on December 
31, 2005.

                     TITLE IV--PLANT PROTECTION ACT

SEC. 401. SHORT TITLE.

    This title may be cited as the ``Plant Protection Act''.

SEC. 402. FINDINGS.

    Congress finds that--
        (1) the detection, control, eradication, suppression, 
    prevention, or retardation of the spread of plant pests or noxious 
    weeds is necessary for the protection of the agriculture, 
    environment, and economy of the United States;
        (2) biological control is often a desirable, low-risk means of 
    ridding crops and other plants of plant pests and noxious weeds, 
    and its use should be facilitated by the Department of Agriculture, 
    other Federal agencies, and States whenever feasible;
        (3) it is the responsibility of the Secretary to facilitate 
    exports, imports, and interstate commerce in agricultural products 
    and other commodities that pose a risk of harboring plant pests or 
    noxious weeds in ways that will reduce, to the extent practicable, 
    as determined by the Secretary, the risk of dissemination of plant 
    pests or noxious weeds;
        (4) decisions affecting imports, exports, and interstate 
    movement of products regulated under this title shall be based on 
    sound science;
        (5) the smooth movement of enterable plants, plant products, 
    biological control organisms, or other articles into, out of, or 
    within the United States is vital to the United State's economy and 
    should be facilitated to the extent possible;
        (6) export markets could be severely impacted by the 
    introduction or spread of plant pests or noxious weeds into or 
    within the United States;
        (7) the unregulated movement of plant pests, noxious weeds, 
    plants, certain biological control organisms, plant products, and 
    articles capable of harboring plant pests or noxious weeds could 
    present an unacceptable risk of introducing or spreading plant 
    pests or noxious weeds;
        (8) the existence on any premises in the United States of a 
    plant pest or noxious weed new to or not known to be widely 
    prevalent in or distributed within and throughout the United States 
    could constitute a threat to crops and other plants or plant 
    products of the United States and burden interstate commerce or 
    foreign commerce; and
        (9) all plant pests, noxious weeds, plants, plant products, 
    articles capable of harboring plant pests or noxious weeds 
    regulated under this title are in or affect interstate commerce or 
    foreign commerce.

SEC. 403. DEFINITIONS.

    In this title:
        (1) Article.--The term ``article'' means any material or 
    tangible object that could harbor plant pests or noxious weeds.
        (2) Biological control organism.--The term ``biological control 
    organism'' means any enemy, antagonist, or competitor used to 
    control a plant pest or noxious weed.
        (3) Enter and entry.--The terms ``enter'' and ``entry'' mean to 
    move into, or the act of movement into, the commerce of the United 
    States.
        (4) Export and exportation.--The terms ``export'' and 
    ``exportation'' mean to move from, or the act of movement from, the 
    United States to any place outside the United States.
        (5) Import and importation.--The terms ``import'' and 
    ``importation'' mean to move into, or the act of movement into, the 
    territorial limits of the United States.
        (6) Interstate.--The term ``interstate'' means--
            (A) from one State into or through any other State; or
            (B) within the District of Columbia, Guam, the Virgin 
        Islands of the United States, or any other territory or 
        possession of the United States.
        (7) Interstate commerce.--The term ``interstate commerce'' 
    means trade, traffic, or other commerce--
            (A) between a place in a State and a point in another 
        State, or between points within the same State but through any 
        place outside that State; or
            (B) within the District of Columbia, Guam, the Virgin 
        Islands of the United States, or any other territory or 
        possession of the United States.
        (8) Means of conveyance.--The term ``means of conveyance'' 
    means any personal property used for or intended for use for the 
    movement of any other personal property.
        (9) Move and related terms.--The terms ``move'', ``moving'', 
    and ``movement'' mean--
            (A) to carry, enter, import, mail, ship, or transport;
            (B) to aid, abet, cause, or induce the carrying, entering, 
        importing, mailing, shipping, or transporting;
            (C) to offer to carry, enter, import, mail, ship, or 
        transport;
            (D) to receive to carry, enter, import, mail, ship, or 
        transport;
            (E) to release into the environment; or
            (F) to allow any of the activities described in a preceding 
        subparagraph.
        (10) Noxious weed.--The term ``noxious weed'' means any plant 
    or plant product that can directly or indirectly injure or cause 
    damage to crops (including nursery stock or plant products), 
    livestock, poultry, or other interests of agriculture, irrigation, 
    navigation, the natural resources of the United States, the public 
    health, or the environment.
        (11) Permit.--The term ``permit'' means a written or oral 
    authorization, including by electronic methods, by the Secretary to 
    move plants, plant products, biological control organisms, plant 
    pests, noxious weeds, or articles under conditions prescribed by 
    the Secretary.
        (12) Person.--The term ``person'' means any individual, 
    partnership, corporation, association, joint venture, or other 
    legal entity.
        (13) Plant.--The term ``plant'' means any plant (including any 
    plant part) for or capable of propagation, including a tree, a 
    tissue culture, a plantlet culture, pollen, a shrub, a vine, a 
    cutting, a graft, a scion, a bud, a bulb, a root, and a seed.
        (14) Plant pest.--The term ``plant pest'' means any living 
    stage of any of the following that can directly or indirectly 
    injure, cause damage to, or cause disease in any plant or plant 
    product:
            (A) A protozoan.
            (B) A nonhuman animal.
            (C) A parasitic plant.
            (D) A bacterium.
            (E) A fungus.
            (F) A virus or viroid.
            (G) An infectious agent or other pathogen.
            (H) Any article similar to or allied with any of the 
        articles specified in the preceding subparagraphs.
        (15) Plant product.--The term ``plant product'' means--
            (A) any flower, fruit, vegetable, root, bulb, seed, or 
        other plant part that is not included in the definition of 
        plant; or
            (B) any manufactured or processed plant or plant part.
        (16) Secretary.--The term ``Secretary'' means the Secretary of 
    Agriculture.
        (17) State.--The term ``State'' means any of the several States 
    of the United States, the Commonwealth of the Northern Mariana 
    Islands, the Commonwealth of Puerto Rico, the District of Columbia, 
    Guam, the Virgin Islands of the United States, or any other 
    territory or possession of the United States.
        (18) Systems approach.--For the purposes of section 412(e), the 
    term ``systems approach'' means a defined set of phytosanitary 
    procedures, at least two of which have an independent effect in 
    mitigating pest risk associated with the movement of commodities.
        (19) This title.--Except when used in this section, the term 
    ``this title'' includes any regulation or order issued by the 
    Secretary under the authority of this title.
        (20) United states.--The term ``United States'' means all of 
    the States.

                      Subtitle A--Plant Protection

SEC. 411. REGULATION OF MOVEMENT OF PLANT PESTS.

    (a) Prohibition of Unauthorized Movement of Plant Pests.--Except as 
provided in subsection (c), no person shall import, enter, export, or 
move in interstate commerce any plant pest, unless the importation, 
entry, exportation, or movement is authorized under general or specific 
permit and is in accordance with such regulations as the Secretary may 
issue to prevent the introduction of plant pests into the United States 
or the dissemination of plant pests within the United States.
    (b) Requirements for Processes.--The Secretary shall ensure that 
the processes used in developing regulations under subsection (a) 
governing consideration of import requests are based on sound science 
and are transparent and accessible.
    (c) Authorization of Movement of Plant Pests by Regulation.--
        (1) Exception to permit requirement.--The Secretary may issue 
    regulations to allow the importation, entry, exportation, or 
    movement in interstate commerce of specified plant pests without 
    further restriction if the Secretary finds that a permit under 
    subsection (a) is not necessary.
        (2) Petition to add or remove plant pests from regulation.--Any 
    person may petition the Secretary to add a plant pest to, or remove 
    a plant pest from, the regulations issued by the Secretary under 
    paragraph (1).
        (3) Response to petition by the secretary.--In the case of a 
    petition submitted under paragraph (2), the Secretary shall act on 
    the petition within a reasonable time and notify the petitioner of 
    the final action the Secretary takes on the petition. The 
    Secretary's determination on the petition shall be based on sound 
    science.
    (d) Prohibition of Unauthorized Mailing of Plant Pests.--
        (1) In general.--Any letter, parcel, box, or other package 
    containing any plant pest, whether sealed as letter-rate postal 
    matter or not, is nonmailable and shall not knowingly be conveyed 
    in the mail or delivered from any post office or by any mail 
    carrier, unless the letter, parcel, box, or other package is mailed 
    in compliance with such regulations as the Secretary may issue to 
    prevent the dissemination of plant pests into the United States or 
    interstate.
        (2) Application of postal laws and regulations.--Nothing in 
    this subsection authorizes any person to open any mailed letter or 
    other mailed sealed matter except in accordance with the postal 
    laws and regulations.
    (e) Regulations.--Regulations issued by the Secretary to implement 
subsections (a), (c), and (d) may include provisions requiring that any 
plant pest imported, entered, to be exported, moved in interstate 
commerce, mailed, or delivered from any post office--
        (1) be accompanied by a permit issued by the Secretary prior to 
    the importation, entry, exportation, movement in interstate 
    commerce, mailing, or delivery of the plant pest;
        (2) be accompanied by a certificate of inspection issued (in a 
    manner and form required by the Secretary) by appropriate officials 
    of the country or State from which the plant pest is to be moved;
        (3) be raised under post-entry quarantine conditions by or 
    under the supervision of the Secretary for the purposes of 
    determining whether the plant pest--
            (A) may be infested with other plant pests;
            (B) may pose a significant risk of causing injury to, 
        damage to, or disease in any plant or plant product; or
            (C) may be a noxious weed; and
        (4) be subject to remedial measures the Secretary determines to 
    be necessary to prevent the spread of plant pests.

SEC. 412. REGULATION OF MOVEMENT OF PLANTS, PLANT PRODUCTS, BIOLOGICAL 
              CONTROL ORGANISMS, NOXIOUS WEEDS, ARTICLES, AND MEANS OF 
              CONVEYANCE.

    (a) In General.--The Secretary may prohibit or restrict the 
importation, entry, exportation, or movement in interstate commerce of 
any plant, plant product, biological control organism, noxious weed, 
article, or means of conveyance, if the Secretary determines that the 
prohibition or restriction is necessary to prevent the introduction 
into the United States or the dissemination of a plant pest or noxious 
weed within the United States.
    (b) Policy.--The Secretary shall ensure that processes used in 
developing regulations under this section governing consideration of 
import requests are based on sound science and are transparent and 
accessible.
    (c) Regulations.--The Secretary may issue regulations to implement 
subsection (a), including regulations requiring that any plant, plant 
product, biological control organism, noxious weed, article, or means 
of conveyance imported, entered, to be exported, or moved in interstate 
commerce--
        (1) be accompanied by a permit issued by the Secretary prior to 
    the importation, entry, exportation, or movement in interstate 
    commerce;
        (2) be accompanied by a certificate of inspection issued (in a 
    manner and form required by the Secretary) by appropriate officials 
    of the country or State from which the plant, plant product, 
    biological control organism, noxious weed, article, or means of 
    conveyance is to be moved;
        (3) be subject to remedial measures the Secretary determines to 
    be necessary to prevent the spread of plant pests or noxious weeds; 
    and
        (4) with respect to plants or biological control organisms, be 
    grown or handled under post-entry quarantine conditions by or under 
    the supervision of the Secretary for the purposes of determining 
    whether the plant or biological control organism may be infested 
    with plant pests or may be a plant pest or noxious weed.
    (d) Notice.--Not later than 1 year after the date of the enactment 
of this Act, the Secretary shall publish for public comment a notice 
describing the procedures and standards that govern the consideration 
of import requests. The notice shall--
        (1) specify how public input will be sought in advance of and 
    during the process of promulgating regulations necessitating a risk 
    assessment in order to ensure a fully transparent and publicly 
    accessible process; and
        (2) include consideration of the following:
            (A) Public announcement of import requests that will 
        necessitate a risk assessment.
            (B) A process for assigning major/nonroutine or minor/
        routine status to such requests based on current state of 
        supporting scientific information.
            (C) A process for assigning priority to requests.
            (D) Guidelines for seeking relevant scientific and economic 
        information in advance of initiating informal rulemaking.
            (E) Guidelines for ensuring availability and transparency 
        of assumptions and uncertainties in the risk assessment process 
        including applicable risk mitigation measures relied upon 
        individually or as components of a system of mitigative 
        measures proposed consistent with the purposes of this title.
    (e) Study and Report on Systems Approach.--
        (1) Study.--The Secretary shall conduct a study of the role for 
    and application of systems approaches designed to guard against the 
    introduction of plant pathogens into the United States associated 
    with proposals to import plants or plant products into the United 
    States.
        (2) Participation by scientists.--In conducting the study the 
    Secretary shall ensure participation by scientists from State 
    departments of agriculture, colleges and universities, the private 
    sector, and the Agricultural Research Service.
        (3) Report.--Not later than 2 years after the date of the 
    enactment of this Act, the Secretary shall submit a report on the 
    results of the study conducted under this section to the Committee 
    on Agriculture, Nutrition, and Forestry of the Senate and the 
    Committee on Agriculture of the House of Representatives.
    (f) Noxious Weeds.--
        (1) Regulations.--In the case of noxious weeds, the Secretary 
    may publish, by regulation, a list of noxious weeds that are 
    prohibited or restricted from entering the United States or that 
    are subject to restrictions on interstate movement within the 
    United States.
        (2) Petition to add or remove plants from regulation.--Any 
    person may petition the Secretary to add a plant species to, or 
    remove a plant species from, the regulations issued by the 
    Secretary under this subsection.
        (3) Duties of the secretary.--In the case of a petition 
    submitted under paragraph (2), the Secretary shall act on the 
    petition within a reasonable time and notify the petitioner of the 
    final action the Secretary takes on the petition. The Secretary's 
    determination on the petition shall be based on sound science.
    (g) Biological Control Organisms.--
        (1) Regulations.--In the case of biological control organisms, 
    the Secretary may publish, by regulation, a list of organisms whose 
    movement in interstate commerce is not prohibited or restricted. 
    Any listing may take into account distinctions between organisms 
    such as indigenous, nonindigenous, newly introduced, or 
    commercially raised.
        (2) Petition to add or remove biological control organisms from 
    the regulations.--Any person may petition the Secretary to add a 
    biological control organism to, or remove a biological control 
    organism from, the regulations issued by the Secretary under this 
    subsection.
        (3) Duties of the secretary.--In the case of a petition 
    submitted under paragraph (2), the Secretary shall act on the 
    petition within a reasonable time and notify the petitioner of the 
    final action the Secretary takes on the petition. The Secretary's 
    determination on the petition shall be based on sound science.

SEC. 413. NOTIFICATION AND HOLDING REQUIREMENTS UPON ARRIVAL.

    (a) Duty of Secretary of the Treasury.--
        (1) Notification.--The Secretary of the Treasury shall promptly 
    notify the Secretary of Agriculture of the arrival of any plant, 
    plant product, biological control organism, plant pest, or noxious 
    weed at a port of entry.
        (2) Holding.--The Secretary of the Treasury shall hold a plant, 
    plant product, biological control organism, plant pest, or noxious 
    weed for which notification is made under paragraph (1) at the port 
    of entry until the plant, plant product, biological control 
    organism, plant pest, or noxious weed--
            (A) is inspected and authorized for entry into or transit 
        movement through the United States; or
            (B) is otherwise released by the Secretary of Agriculture.
        (3) Exceptions.--Paragraphs (1) and (2) shall not apply to any 
    plant, plant product, biological control organism, plant pest, or 
    noxious weed that is imported from a country or region of a country 
    designated by the Secretary of Agriculture, pursuant to 
    regulations, as exempt from the requirements of such paragraphs.
    (b) Duty of Responsible Parties.--
        (1) Notification.--The person responsible for any plant, plant 
    product, biological control organism, plant pest, noxious weed, 
    article, or means of conveyance required to have a permit under 
    section 411 or 412 shall provide the notification described in 
    paragraph (3) as soon as possible after the arrival of the plant, 
    plant product, biological control organism, plant pest, noxious 
    weed, article, or means of conveyance at a port of entry and before 
    the plant, plant product, biological control organism, plant pest, 
    noxious weed, article, or means of conveyance is moved from the 
    port of entry.
        (2) Submission.--The notification shall be provided to the 
    Secretary, or, at the Secretary's direction, to the proper official 
    of the State to which the plant, plant product, biological control 
    organism, plant pest, noxious weed, article, or means of conveyance 
    is destined, or both, as the Secretary may prescribe.
        (3) Elements of notification.--The notification shall consist 
    of the following:
            (A) The name and address of the consignee.
            (B) The nature and quantity of the plant, plant product, 
        biological control organism, plant pest, noxious weed, article, 
        or means of conveyance proposed to be moved.
            (C) The country and locality where the plant, plant 
        product, biological control organism, plant pest, noxious weed, 
        article, or means of conveyance was grown, produced, or 
        located.
    (c) Prohibition on Movement of Items Without Authorization.--No 
person shall move from a port of entry or interstate any imported 
plant, plant product, biological control organism, plant pest, noxious 
weed, article, or means of conveyance unless the imported plant, plant 
product, biological control organism, plant pest, noxious weed, 
article, or means of conveyance--
        (1) is inspected and authorized for entry into or transit 
    movement through the United States; or
        (2) is otherwise released by the Secretary.

SEC. 414. GENERAL REMEDIAL MEASURES FOR NEW PLANT PESTS AND NOXIOUS 
              WEEDS.

    (a) Authority To Hold, Treat, or Destroy Items.--If the Secretary 
considers it necessary in order to prevent the dissemination of a plant 
pest or noxious weed that is new to or not known to be widely prevalent 
or distributed within and throughout the United States, the Secretary 
may hold, seize, quarantine, treat, apply other remedial measures to, 
destroy, or otherwise dispose of any plant, plant pest, noxious weed, 
biological control organism, plant product, article, or means of 
conveyance that--
        (1) is moving into or through the United States or interstate, 
    or has moved into or through the United States or interstate, and--
            (A) the Secretary has reason to believe is a plant pest or 
        noxious weed or is infested with a plant pest or noxious weed 
        at the time of the movement; or
            (B) is or has been otherwise in violation of this title;
        (2) has not been maintained in compliance with a post-entry 
    quarantine requirement; or
        (3) is the progeny of any plant, biological control organism, 
    plant product, plant pest, or noxious weed that is moving into or 
    through the United States or interstate, or has moved into the 
    United States or interstate, in violation of this title.
    (b) Authority To Order an Owner To Treat or Destroy.--
        (1) In general.--The Secretary may order the owner of any 
    plant, biological control organism, plant product, plant pest, 
    noxious weed, article, or means of conveyance subject to action 
    under subsection (a), or the owner's agent, to treat, apply other 
    remedial measures to, destroy, or otherwise dispose of the plant, 
    biological control organism, plant product, plant pest, noxious 
    weed, article, or means of conveyance, without cost to the Federal 
    Government and in the manner the Secretary considers appropriate.
        (2) Failure to comply.--If the owner or agent of the owner 
    fails to comply with the Secretary's order under this subsection, 
    the Secretary may take an action authorized by subsection (a) and 
    recover from the owner or agent of the owner the costs of any care, 
    handling, application of remedial measures, or disposal incurred by 
    the Secretary in connection with actions taken under subsection 
    (a).
    (c) Classification System.--
        (1) Development required.--To facilitate control of noxious 
    weeds, the Secretary may develop a classification system to 
    describe the status and action levels for noxious weeds. The 
    classification system may include the current geographic 
    distribution, relative threat, and actions initiated to prevent 
    introduction or distribution.
        (2) Management plans.--In conjunction with the classification 
    system, the Secretary may develop integrated management plans for 
    noxious weeds for the geographic region or ecological range where 
    the noxious weed is found in the United States.
    (d) Application of Least Drastic Action.--No plant, biological 
control organism, plant product, plant pest, noxious weed, article, or 
means of conveyance shall be destroyed, exported, or returned to the 
shipping point of origin, or ordered to be destroyed, exported, or 
returned to the shipping point of origin under this section unless, in 
the opinion of the Secretary, there is no less drastic action that is 
feasible and that would be adequate to prevent the dissemination of any 
plant pest or noxious weed new to or not known to be widely prevalent 
or distributed within and throughout the United States.

SEC. 415. DECLARATION OF EXTRAORDINARY EMERGENCY AND RESULTING 
              AUTHORITIES.

    (a) Authority To Declare.--If the Secretary determines that an 
extraordinary emergency exists because of the presence of a plant pest 
or noxious weed that is new to or not known to be widely prevalent in 
or distributed within and throughout the United States and that the 
presence of the plant pest or noxious weed threatens plants or plant 
products of the United States, the Secretary may--
        (1) hold, seize, quarantine, treat, apply other remedial 
    measures to, destroy, or otherwise dispose of, any plant, 
    biological control organism, plant product, article, or means of 
    conveyance that the Secretary has reason to believe is infested 
    with the plant pest or noxious weed;
        (2) quarantine, treat, or apply other remedial measures to any 
    premises, including any plants, biological control organisms, plant 
    products, articles, or means of conveyance on the premises, that 
    the Secretary has reason to believe is infested with the plant pest 
    or noxious weed;
        (3) quarantine any State or portion of a State in which the 
    Secretary finds the plant pest or noxious weed or any plant, 
    biological control organism, plant product, article, or means of 
    conveyance that the Secretary has reason to believe is infested 
    with the plant pest or noxious weed; and
        (4) prohibit or restrict the movement within a State of any 
    plant, biological control organism, plant product, article, or 
    means of conveyance when the Secretary determines that the 
    prohibition or restriction is necessary to prevent the 
    dissemination of the plant pest or noxious weed or to eradicate the 
    plant pest or noxious weed.
    (b) Required Finding of Emergency.--The Secretary may take action 
under this section only upon finding, after review and consultation 
with the Governor or other appropriate official of the State affected, 
that the measures being taken by the State are inadequate to eradicate 
the plant pest or noxious weed.
    (c) Notification Procedures.--
        (1) In general.--Except as provided in paragraph (2), before 
    any action is taken in any State under this section, the Secretary 
    shall notify the Governor or other appropriate official of the 
    State affected, issue a public announcement, and file for 
    publication in the Federal Register a statement of--
            (A) the Secretary's findings;
            (B) the action the Secretary intends to take;
            (C) the reasons for the intended action; and
            (D) where practicable, an estimate of the anticipated 
        duration of the extraordinary emergency.
        (2) Time sensitive actions.--If it is not possible to file for 
    publication in the Federal Register prior to taking action, the 
    filing shall be made within a reasonable time, not to exceed 10 
    business days, after commencement of the action.
    (d) Application of Least Drastic Action.--No plant, biological 
control organism, plant product, plant pest, noxious weed, article, or 
means of conveyance shall be destroyed, exported, or returned to the 
shipping point of origin, or ordered to be destroyed, exported, or 
returned to the shipping point of origin under this section unless, in 
the opinion of the Secretary, there is no less drastic action that is 
feasible and that would be adequate to prevent the dissemination of any 
plant pest or noxious weed new to or not known to be widely prevalent 
or distributed within and throughout the United States.
    (e) Payment of Compensation.--The Secretary may pay compensation to 
any person for economic losses incurred by the person as a result of 
action taken by the Secretary under this section. The determination by 
the Secretary of the amount of any compensation to be paid under this 
subsection shall be final and shall not be subject to judicial review.

SEC. 416. RECOVERY OF COMPENSATION FOR UNAUTHORIZED ACTIVITIES.

    (a) Recovery Action.--The owner of any plant, plant biological 
control organism, plant product, plant pest, noxious weed, article, or 
means of conveyance destroyed or otherwise disposed of by the Secretary 
under section 414 or 415 may bring an action against the United States 
to recover just compensation for the destruction or disposal of the 
plant, plant biological control organism, plant product, plant pest, 
noxious weed, article, or means of conveyance (not including 
compensation for loss due to delays incident to determining eligibility 
for importation, entry, exportation, movement in interstate commerce, 
or release into the environment), but only if the owner establishes 
that the destruction or disposal was not authorized under this title.
    (b) Time for Action; Location.--An action under this section shall 
be brought not later than 1 year after the destruction or disposal of 
the plant, plant biological control organism, plant product, plant 
pest, noxious weed, article, or means of conveyance involved. The 
action may be brought in any United States district court where the 
owner is found, resides, transacts business, is licensed to do 
business, or is incorporated.

SEC. 417. CONTROL OF GRASSHOPPERS AND MORMON CRICKETS.

    (a) In General.--Subject to the availability of funds pursuant to 
this section, the Secretary shall carry out a program to control 
grasshoppers and Mormon crickets on all Federal lands to protect 
rangeland.
    (b) Transfer Authority.--
        (1) In general.--Subject to paragraph (3), upon the request of 
    the Secretary of Agriculture, the Secretary of the Interior shall 
    transfer to the Secretary of Agriculture, from any no-year 
    appropriations, funds for the prevention, suppression, and control 
    of actual or potential grasshopper and Mormon cricket outbreaks on 
    Federal lands under the jurisdiction of the Secretary of the 
    Interior. The transferred funds shall be available only for the 
    payment of obligations incurred on such Federal lands.
        (2) Transfer requests.--Requests for the transfer of funds 
    pursuant to this subsection shall be made as promptly as possible 
    by the Secretary.
        (3) Limitation.--Funds transferred pursuant to this subsection 
    may not be used by the Secretary until funds specifically 
    appropriated to the Secretary for grasshopper control have been 
    exhausted.
        (4) Replenishment of transferred funds.--Funds transferred 
    pursuant to this subsection shall be replenished by supplemental or 
    regular appropriations, which shall be requested as promptly as 
    possible.
    (c) Treatment for Grasshoppers and Mormon Crickets.--
        (1) In general.--Subject to the availability of funds pursuant 
    to this section, on request of the administering agency or the 
    agriculture department of an affected State, the Secretary, to 
    protect rangeland, shall immediately treat Federal, State, or 
    private lands that are infested with grasshoppers or Mormon 
    crickets at levels of economic infestation, unless the Secretary 
    determines that delaying treatment will not cause greater economic 
    damage to adjacent owners of rangeland.
        (2) Other programs.--In carrying out this section, the 
    Secretary shall work in conjunction with other Federal, State, and 
    private prevention, control, or suppression efforts to protect 
    rangeland.
    (d) Federal Cost Share of Treatment.--
        (1) Control on federal lands.--Out of funds made available or 
    transferred under this section, the Secretary shall pay 100 percent 
    of the cost of grasshopper or Mormon cricket control on Federal 
    lands to protect rangeland.
        (2) Control on state lands.--Out of funds made available under 
    this section, the Secretary shall pay 50 percent of the cost of 
    grasshopper or Mormon cricket control on State lands.
        (3) Control on private lands.--Out of funds made available 
    under this section, the Secretary shall pay 33.3 percent of the 
    cost of grasshopper or Mormon cricket control on private lands.
    (e) Training.--From appropriated funds made available or 
transferred by the Secretary of the Interior to the Secretary of 
Agriculture for such purposes, the Secretary of Agriculture shall 
provide adequate funding for a program to train personnel to accomplish 
effectively the objective of this section.

SEC. 418. CERTIFICATION FOR EXPORTS.

    The Secretary may certify as to the freedom of plants, plant 
products, or biological control organisms from plant pests or noxious 
weeds, or the exposure of plants, plant products, or biological control 
organisms to plant pests or noxious weeds, according to the 
phytosanitary or other requirements of the countries to which the 
plants, plant products, or biological control organisms may be 
exported.

                 Subtitle B--Inspection and Enforcement

SEC. 421. INSPECTIONS, SEIZURES, AND WARRANTS.

    (a) Role of Attorney General.--The activities authorized by this 
section shall be carried out consistent with guidelines approved by the 
Attorney General.
    (b) Warrantless Inspections.--The Secretary may stop and inspect, 
without a warrant, any person or means of conveyance moving--
        (1) into the United States to determine whether the person or 
    means of conveyance is carrying any plant, plant product, 
    biological control organism, plant pest, noxious weed, or article 
    subject to this title;
        (2) in interstate commerce, upon probable cause to believe that 
    the person or means of conveyance is carrying any plant, plant 
    product, biological control organism, plant pest, noxious weed, or 
    article subject to this title; and
        (3) in intrastate commerce from or within any State, portion of 
    a State, or premises quarantined as part of a extraordinary 
    emergency declared under section 415 upon probable cause to believe 
    that the person or means of conveyance is carrying any plant, plant 
    product, biological control organism, plant pest, noxious weed, or 
    article regulated under that section or is moving subject to that 
    section.
    (c) Inspections With a Warrant.--
        (1) General authority.--The Secretary may enter, with a 
    warrant, any premises in the United States for the purpose of 
    conducting investigations or making inspections and seizures under 
    this title.
        (2) Application and issuance of a warrant.--Upon proper oath or 
    affirmation showing probable cause to believe that there is on 
    certain premises any plant, plant product, biological control 
    organism, plant pest, noxious weed, article, facility, or means of 
    conveyance regulated under this title, a United States judge, a 
    judge of a court of record in the United States, or a United States 
    magistrate judge may, within the judge's or magistrate's 
    jurisdiction, issue a warrant for the entry upon the premises to 
    conduct any investigation or make any inspection or seizure under 
    this title. The warrant may be applied for and executed by the 
    Secretary or any United States Marshal.

SEC. 422. COLLECTION OF INFORMATION.

    The Secretary may gather and compile information and conduct any 
investigations the Secretary considers necessary for the administration 
and enforcement of this title.

SEC. 423. SUBPOENA AUTHORITY.

    (a) Authority To Issue.--The Secretary shall have power to subpoena 
the attendance and testimony of any witness, and the production of all 
documentary evidence relating to the administration or enforcement of 
this title or any matter under investigation in connection with this 
title.
    (b) Location of Production.--The attendance of any witness and 
production of documentary evidence may be required from any place in 
the United States at any designated place of hearing.
    (c) Enforcement of Subpoena.--In the case of disobedience to a 
subpoena by any person, the Secretary may request the Attorney General 
to invoke the aid of any court of the United States within the 
jurisdiction in which the investigation is conducted, or where the 
person resides, is found, transacts business, is licensed to do 
business, or is incorporated, in requiring the attendance and testimony 
of any witness and the production of documentary evidence. In case of a 
refusal to obey a subpoena issued to any person, a court may order the 
person to appear before the Secretary and give evidence concerning the 
matter in question or to produce documentary evidence. Any failure to 
obey the court's order may be punished by the court as a contempt of 
the court.
    (d) Compensation.--Witnesses summoned by the Secretary shall be 
paid the same fees and mileage that are paid to witnesses in courts of 
the United States, and witnesses whose depositions are taken and the 
persons taking the depositions shall be entitled to the same fees that 
are paid for similar services in the courts of the United States.
    (e) Procedures.--The Secretary shall publish procedures for the 
issuance of subpoenas under this section. Such procedures shall include 
a requirement that subpoenas be reviewed for legal sufficiency and 
signed by the Secretary. If the authority to sign a subpoena is 
delegated, the agency receiving the delegation shall seek review for 
legal sufficiency outside that agency.
    (f) Scope of Subpoena.--Subpoenas for witnesses to attend court in 
any judicial district or to testify or produce evidence at an 
administrative hearing in any judicial district in any action or 
proceeding arising under this title may run to any other judicial 
district.

SEC. 424. PENALTIES FOR VIOLATION.

    (a) Criminal Penalties.--Any person that knowingly violates this 
title, or that knowingly forges, counterfeits, or, without authority 
from the Secretary, uses, alters, defaces, or destroys any certificate, 
permit, or other document provided for in this title shall be guilty of 
a misdemeanor, and, upon conviction, shall be fined in accordance with 
title 18, United States Code, imprisoned for a period not exceeding 1 
year, or both.
    (b) Civil Penalties.--
        (1) In general.--Any person that violates this title, or that 
    forges, counterfeits, or, without authority from the Secretary, 
    uses, alters, defaces, or destroys any certificate, permit, or 
    other document provided for in this title may, after notice and 
    opportunity for a hearing on the record, be assessed a civil 
    penalty by the Secretary that does not exceed the greater of--
            (A) $50,000 in the case of any individual (except that the 
        civil penalty may not exceed $1,000 in the case of an initial 
        violation of this title by an individual moving regulated 
        articles not for monetary gain), $250,000 in the case of any 
        other person for each violation, and $500,000 for all 
        violations adjudicated in a single proceeding; or
            (B) twice the gross gain or gross loss for any violation, 
        forgery, counterfeiting, unauthorized use, defacing, or 
        destruction of a certificate, permit, or other document 
        provided for in this title that results in the person deriving 
        pecuniary gain or causing pecuniary loss to another.
        (2) Factors in determining civil penalty.--In determining the 
    amount of a civil penalty, the Secretary shall take into account 
    the nature, circumstance, extent, and gravity of the violation or 
    violations and the Secretary may consider, with respect to the 
    violator--
            (A) ability to pay;
            (B) effect on ability to continue to do business;
            (C) any history of prior violations;
            (D) the degree of culpability; and
            (E) any other factors the Secretary considers appropriate.
        (3) Settlement of civil penalties.--The Secretary may 
    compromise, modify, or remit, with or without conditions, any civil 
    penalty that may be assessed under this subsection.
        (4) Finality of orders.--The order of the Secretary assessing a 
    civil penalty shall be treated as a final order reviewable under 
    chapter 158 of title 28, United States Code. The validity of the 
    Secretary's order may not be reviewed in an action to collect the 
    civil penalty. Any civil penalty not paid in full when due under an 
    order assessing the civil penalty shall thereafter accrue interest 
    until paid at the rate of interest applicable to civil judgments of 
    the courts of the United States.
    (c) Liability for Acts of an Agent.--When construing and enforcing 
this title, the act, omission, or failure of any officer, agent, or 
person acting for or employed by any other person within the scope of 
his or her employment or office, shall be deemed also to be the act, 
omission, or failure of the other person.
    (d) Guidelines for Civil Penalties.--The Secretary shall coordinate 
with the Attorney General to establish guidelines to determine under 
what circumstances the Secretary may issue a civil penalty or suitable 
notice of warning in lieu of prosecution by the Attorney General of a 
violation of this title.

SEC. 425. ENFORCEMENT ACTIONS OF ATTORNEY GENERAL.

    The Attorney General may--
        (1) prosecute, in the name of the United States, all criminal 
    violations of this title that are referred to the Attorney General 
    by the Secretary or are brought to the notice of the Attorney 
    General by any person;
        (2) bring an action to enjoin the violation of or to compel 
    compliance with this title, or to enjoin any interference by any 
    person with the Secretary in carrying out this title, whenever the 
    Secretary has reason to believe that the person has violated, or is 
    about to violate this title, or has interfered, or is about to 
    interfere, with the Secretary; and
        (3) bring an action for the recovery of any unpaid civil 
    penalty, funds under reimbursable agreements, late payment penalty, 
    or interest assessed under this title.

SEC. 426. COURT JURISDICTION.

    (a) In General.--The United States district courts, the District 
Court of Guam, the District Court of the Virgin Islands, the highest 
court of American Samoa, and the United States courts of other 
territories and possessions are vested with jurisdiction in all cases 
arising under this title. Any action arising under this title may be 
brought, and process may be served, in the judicial district where a 
violation or interference occurred or is about to occur, or where the 
person charged with the violation, interference, impending violation, 
impending interference, or failure to pay resides, is found, transacts 
business, is licensed to do business, or is incorporated.
    (b) Exception.--This section does not apply to the imposition of 
civil penalties under section 424(b).

                  Subtitle C--Miscellaneous Provisions

SEC. 431. COOPERATION.

    (a) In General.--The Secretary may cooperate with other Federal 
agencies or entities, States or political subdivisions of States, 
national governments, local governments of other nations, domestic or 
international organizations, domestic or international associations, 
and other persons to carry out this title.
    (b) Responsibility.--The individual or entity cooperating with the 
Secretary under subsection (a) shall be responsible for--
        (1) the authority necessary to conduct the operations or take 
    measures on all land and properties within the foreign country or 
    State, other than those owned or controlled by the United States; 
    and
        (2) other facilities and means as the Secretary determines 
    necessary.
    (c) Transfer of Biological Control Methods.--The Secretary may 
transfer to a State, Federal agency, or other person biological control 
methods using biological control organisms against plant pests or 
noxious weeds.
    (d) Cooperation in Program Administration.--The Secretary may 
cooperate with State authorities or other persons in the administration 
of programs for the improvement of plants, plant products, and 
biological control organisms.
    (e) Phytosanitary Issues.--The Secretary shall ensure that 
phytosanitary issues involving imports and exports are addressed based 
on sound science and consistent with applicable international 
agreements. To accomplish these goals, the Secretary may--
        (1) conduct direct negotiations with plant health officials or 
    other appropriate officials of other countries;
        (2) provide technical assistance, training, and guidance to any 
    country requesting such assistance in the development of 
    agricultural health protection systems and import/export systems; 
    and
        (3) maintain plant health and quarantine expertise in other 
    countries--
            (A) to facilitate the establishment of phytosanitary 
        systems and the resolution of phytosanitary issues;
            (B) to assist those countries with agricultural health 
        protection activities; and
            (C) to provide general liaison on agricultural health 
        issues with the plant health or other appropriate officials of 
        the country.

SEC. 432. BUILDINGS, LAND, PEOPLE, CLAIMS, AND AGREEMENTS.

    (a) In General.--To the extent necessary to carry out this title, 
the Secretary may acquire and maintain all real or personal property 
for special purposes and employ any persons, make grants, and enter 
into any contracts, cooperative agreements, memoranda of understanding, 
or other agreements.
    (b) Tort Claims.--
        (1) In general.--Except as provided in paragraph (2), the 
    Secretary may pay tort claims in the manner authorized in the first 
    paragraph of section 2672 of title 28, United States Code, when the 
    claims arise outside the United States in connection with 
    activities that are authorized under this title.
        (2) Requirements of claim.--A claim may not be allowed under 
    this subsection unless the claim is presented in writing to the 
    Secretary within 2 years after the date on which the claim accrues.

SEC. 433. REIMBURSABLE AGREEMENTS.

    (a) Authority To Enter Into Agreements.--The Secretary may enter 
into reimbursable fee agreements with persons for preclearance of 
plants, plant products, biological control organisms, and articles at 
locations outside the United States for movement into the United 
States.
    (b) Funds Collected for Preclearance.--Funds collected for 
preclearance shall be credited to accounts which may be established by 
the Secretary for this purpose and shall remain available until 
expended for the preclearance activities without fiscal year 
limitation.
    (c) Payment of Employees.--
        (1) In general.--Notwithstanding any other law, the Secretary 
    may pay employees of the Department of Agriculture performing 
    services relating to imports into and exports from the United 
    States, for all overtime, night, or holiday work performed by them, 
    at rates of pay established by the Secretary.
        (2) Reimbursement of the secretary.--
            (A) In general.--The Secretary may require persons for whom 
        the services are performed to reimburse the Secretary for any 
        sums of money paid by the Secretary for the services.
            (B) Use of funds.--All funds collected under this paragraph 
        shall be credited to the account that incurs the costs and 
        shall remain available until expended without fiscal year 
        limitation.
    (d) Late Payment Penalties.--
        (1) Collection.--Upon failure to reimburse the Secretary in 
    accordance with this section, the Secretary may assess a late 
    payment penalty, and the overdue funds shall accrue interest, as 
    required by section 3717 of title 31, United States Code.
        (2) Use of funds.--Any late payment penalty and any accrued 
    interest shall be credited to the account that incurs the costs and 
    shall remain available until expended without fiscal year 
    limitation.

SEC. 434. REGULATIONS AND ORDERS.

    The Secretary may issue such regulations and orders as the 
Secretary considers necessary to carry out this title.

SEC. 435. PROTECTION FOR MAIL HANDLERS.

    This title shall not apply to any employee of the United States in 
the performance of the duties of the employee in handling the mail.

SEC. 436. PREEMPTION.

    (a) Regulation of Foreign Commerce.--No State or political 
subdivision of a State may regulate in foreign commerce any article, 
means of conveyance, plant, biological control organism, plant pest, 
noxious weed, or plant product in order--
        (1) to control a plant pest or noxious weed;
        (2) to eradicate a plant pest or noxious weed; or
        (3) prevent the introduction or dissemination of a biological 
    control organism, plant pest, or noxious weed.
    (b) Regulation of Interstate Commerce.--
        (1) In general.--Except as provided in paragraph (2), no State 
    or political subdivision of a State may regulate the movement in 
    interstate commerce of any article, means of conveyance, plant, 
    biological control organism, plant pest, noxious weed, or plant 
    product in order to control a plant pest or noxious weed, eradicate 
    a plant pest or noxious weed, or prevent the introduction or 
    dissemination of a biological control organism, plant pest, or 
    noxious weed, if the Secretary has issued a regulation or order to 
    prevent the dissemination of the biological control organism, plant 
    pest, or noxious weed within the United States.
        (2) Exceptions.--
            (A) Regulations consistent with federal regulations.--A 
        State or a political subdivision of a State may impose 
        prohibitions or restrictions upon the movement in interstate 
        commerce of articles, means of conveyance, plants, biological 
        control organisms, plant pests, noxious weeds, or plant 
        products that are consistent with and do not exceed the 
        regulations or orders issued by the Secretary.
            (B) Special need.--A State or political subdivision of a 
        State may impose prohibitions or restrictions upon the movement 
        in interstate commerce of articles, means of conveyance, 
        plants, plant products, biological control organisms, plant 
        pests, or noxious weeds that are in addition to the 
        prohibitions or restrictions imposed by the Secretary, if the 
        State or political subdivision of a State demonstrates to the 
        Secretary and the Secretary finds that there is a special need 
        for additional prohibitions or restrictions based on sound 
        scientific data or a thorough risk assessment.

SEC. 437. SEVERABILITY.

    If any provision of this title or application of any provision of 
this title to any person or circumstances is held invalid, the 
remainder of this title and the application of the provision to other 
persons and circumstances shall not be affected by the invalidity.

SEC. 438. REPEAL OF SUPERSEDED LAWS.

    (a) Repeal.--The following provisions of law are repealed:
        (1) The Act of August 20, 1912 (commonly known as the ``Plant 
    Quarantine Act'') (7 U.S.C. 151-164a, 167).
        (2) The Federal Plant Pest Act (7 U.S.C. 150aa et seq. and 7 
    U.S.C. 147a note).
        (3) Subsections (a) through (e) of section 102 of the 
    Department of Agriculture Organic Act of 1944 (7 U.S.C. 147a).
        (4) The Federal Noxious Weed Act of 1974 (7 U.S.C. 2801 et 
    seq.), except the first section and section 15 of that Act (7 
    U.S.C. 2801 note and 7 U.S.C. 2814).
        (5) The Act of January 31, 1942 (commonly known as the 
    ``Mexican Border Act'') (7 U.S.C. 149).
        (6) The Joint Resolution of April 6, 1937 (commonly known as 
    the ``Insect Control Act'') (7 U.S.C. 148 et seq.).
        (7) The Halogeton Glomeratus Act (7 U.S.C. 1651 et seq.).
        (8) The Golden Nematode Act (7 U.S.C. 150 et seq.).
        (9) Section 1773 of the Food Security Act of 1985 (Public Law 
    99-198; 7 U.S.C. 148f).
    (b) Emergency Transfer Authority Regarding Plant Pests.--The first 
section of Public Law 97-46 (7 U.S.C. 147b) is amended--
        (1) by striking ``plant pests or''; and
        (2) by striking ``section 102 of the Act of September 21, 1944, 
    as amended (7 U.S.C. 147a), and''.
    (c) Effect on Regulations.--Regulations issued under the authority 
of a provision of law repealed by subsection (a) shall remain in effect 
until such time as the Secretary issues a regulation under section 434 
that supersedes the earlier regulation.

              Subtitle D--Authorization of Appropriations

SEC. 441. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated such amounts as may be 
necessary to carry out this title. Except as specifically authorized by 
law, no part of the money appropriated under this section shall be used 
to pay indemnities for property injured or destroyed by or at the 
direction of the Secretary.

SEC. 442. TRANSFER AUTHORITY.

    (a) Authority To Transfer Certain Funds.--In connection with an 
emergency in which a plant pest or noxious weed threatens any segment 
of the agricultural production of the United States, the Secretary may 
transfer from other appropriations or funds available to the agencies 
or corporations of the Department of Agriculture such amounts as the 
Secretary considers necessary to be available in the emergency for the 
arrest, control, eradication, and prevention of the spread of the plant 
pest or noxious weed and for related expenses.
    (b) Availability.--Any funds transferred under this section shall 
remain available for such purposes without fiscal year limitation.

                      TITLE V--INSPECTION ANIMALS

SEC. 501. CIVIL PENALTY.

    (a) In General.--Any person that causes harm to, or interferes 
with, an animal used for the purposes of official inspections by the 
Department of Agriculture, may, after notice and opportunity for a 
hearing on the record, be assessed a civil penalty by the Secretary of 
Agriculture not to exceed $10,000.
    (b) Factors in Determining Civil Penalty.--In determining the 
amount of a civil penalty, the Secretary shall take into account the 
nature, circumstance, extent, and gravity of the offense.
    (c) Settlement of Civil Penalties.--The Secretary may compromise, 
modify, or remit, with or without conditions, any civil penalty that 
may be assessed under this section.
    (d) Finality of Orders.--
        (1) In general.--The order of the Secretary assessing a civil 
    penalty shall be treated as a final order reviewable under chapter 
    158 of title 28, United States Code. The validity of the order of 
    the Secretary may not be reviewed in an action to collect the civil 
    penalty.
        (2) Interest.--Any civil penalty not paid in full when due 
    under an order assessing the civil penalty shall thereafter accrue 
    interest until paid at the rate of interest applicable to civil 
    judgments of the courts of the United States.

SEC. 502. SUBPOENA AUTHORITY.

    (a) In General.--The Secretary shall have power to subpoena the 
attendance and testimony of any witness, and the production of all 
documentary evidence relating to the enforcement of section 501 or any 
matter under investigation in connection with this title.
    (b) Location of Production.--The attendance of any witness and the 
production of documentary evidence may be required from any place in 
the United States at any designated place of hearing.
    (c) Enforcement of Subpoena.--In the case of disobedience to a 
subpoena by any person, the Secretary may request the Attorney General 
to invoke the aid of any court of the United States within the 
jurisdiction in which the investigation is conducted, or where the 
person resides, is found, transacts business, is licensed to do 
business, or is incorporated, in requiring the attendance and testimony 
of any witness and the production of documentary evidence. In case of a 
refusal to obey a subpoena issued to any person, a court may order the 
person to appear before the Secretary and give evidence concerning the 
matter in question or to produce documentary evidence. Any failure to 
obey the court's order may be punished by the court as a contempt of 
the court.
    (d) Compensation.--Witnesses summoned by the Secretary shall be 
paid the same fees and mileage that are paid to witnesses in courts of 
the United States, and witnesses whose depositions are taken, and the 
persons taking the depositions shall be entitled to the same fees that 
are paid for similar services in the courts of the United States.
    (e) Procedures.--The Secretary shall publish procedures for the 
issuance of subpoenas under this section. Such procedures shall include 
a requirement that subpoenas be reviewed for legal sufficiency and 
signed by the Secretary. If the authority to sign a subpoena is 
delegated, the agency receiving the delegation shall seek review for 
legal sufficiency outside that agency.
    (f) Scope of Subpoena.--Subpoenas for witnesses to attend court in 
any judicial district or testify or produce evidence at an 
administrative hearing in any judicial district in any action or 
proceeding arising under section 501 may run to any other judicial 
district.

                               Speaker of the House of Representatives.

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